Loan Production and Financial Performance - In Q3 2025, Redwood achieved record loan production of nearly $6.8 billion, the highest quarterly volume in the company's history[341]. - The Sequoia platform locked a record $5.1 billion in loans, driven by strong contributions from bank and IMB counterparties[343]. - CoreVest funded $521 million in business purpose loans, reflecting robust demand for residential investor products[343]. - Redwood's mortgage banking segments generated the highest revenue since 2021, indicating strong operational performance[343]. - Net loss for Q3 2025 was $9 million, a significant improvement from a net loss of $100 million in Q2 2025, attributed to the sale of Legacy assets and strong mortgage banking contributions[352]. - Net interest income increased to $15 million in Q3 2025 from $14 million in Q2 2025, primarily driven by a $6 million increase from Sequoia Mortgage Banking operations[353]. - Sequoia mortgage banking activities net increased to $29 million in Q3 2025, up from $24 million in Q2 2025, with lock volumes reaching $6.3 billion, a 75% increase from $3.6 billion[354]. - Mortgage banking activities net increased to $114 million for the nine months ended September 30, 2025, compared to $73 million in the prior year, driven by higher lock volumes[362]. - Total loan locks for the nine months ended September 30, 2025, reached $13.9 billion, a substantial increase of 109% compared to $6.7 billion in the same period in 2024[395]. Investment and Capital Management - Redwood reduced its Legacy investment exposure to approximately 25% of total capital, targeting 20% by year-end, through nearly $1 billion in asset dispositions[342]. - The company executed approximately $1 billion in dispositions and structured transactions to accelerate the wind down of the Legacy Investments portfolio ahead of schedule during the third quarter of 2025[445]. - Capital allocated to the Sequoia segment increased to $550 million at September 30, 2025, compared to $475 million at June 30, 2025, due to higher working capital requirements[393]. - Capital allocated to Legacy Investments declined by $63 million or 12% from June 30, 2025, with a target to reduce this allocation to approximately 20% by year-end 2025[453]. - The segment contribution for Redwood Investments decreased by $54 million in the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to a decline in investment fair value changes[437]. Debt and Financing Activities - The company retired $124 million of maturing convertible debt and upsized its secured financing facility from $250 million to $400 million, extending maturity to 2028[344]. - The company had $1.77 billion of available warehouse capacity for residential investor loans as of September 30, 2025, with scheduled bridge loan maturities expected to provide additional cash sources[485]. - The company had $490 million of secured recourse debt financing its investment portfolio as of September 30, 2025, with $117 million being marginable and $373 million non-marginable[493]. - The company was in compliance with financial covenants associated with its debt financing facilities, with stockholders' equity exceeding compliance requirements by more than $200 million as of September 30, 2025[503]. Market Conditions and Future Outlook - The Federal Reserve's shift towards a more accommodative monetary stance is expected to enhance funding economics and capital markets execution for Redwood[345]. - Potential federal housing policy initiatives could stimulate purchase activity and construction-related lending, benefiting Redwood's operations[346]. - The company is well positioned to capitalize on improving market conditions and drive long-term growth, supported by strong production levels and expanded funding capacity[348]. Operational Metrics and Expenses - Operating expenses increased to $163 million for the nine months ended September 30, 2025, up from $139 million in the prior year, primarily due to higher compensation and portfolio management costs[365]. - The average loan size declined by 32% in Q3 2025, reflecting a focus on small balance and cash flow-based investor products[415]. - The average balance of securitized loans for the three months ended September 30, 2025, was $11,991,021,000, with a yield of 5.6%[367]. - Operating expenses for Sequoia Mortgage Banking segment were $10,169,000 for the three months ended September 30, 2025, an increase from $8,472,000 in the previous quarter[381]. Legacy Investments Performance - The Legacy Investments segment reported a loss of $22,230,000 for the three months ended September 30, 2025, an improvement from a loss of $103,989,000 in the previous quarter[376]. - The economic value of Legacy Investments decreased by $511.77 million from June 30, 2025, to $1.14 billion as of September 30, 2025[456]. - The total assets of the Legacy Investments segment decreased by $648.55 million from June 30, 2025, to $2.31 billion as of September 30, 2025[456]. - The company transferred a portfolio of legacy unsecuritized bridge loans and REO assets totaling $484 million in fair value to the Legacy Trust, retaining a $182 million subordinate beneficial interest[463]. Shareholder Actions - The company repurchased common shares under an expanded authorization, enhancing shareholder value[341]. - The company repurchased 5.0 million shares of common stock for a total cost of $29 million during the three months ended September 30, 2025[478].

Financial Performance - Revenue for Q3 2025 was $41.63 million, a decrease of 39.8% compared to $69.03 million in Q3 2024[19] - Gross profit for Q3 2025 was $5.66 million, down 82.4% from $32.23 million in Q3 2024[19] - The net loss for Q3 2025 was $45.06 million, compared to a net loss of $172.46 million in Q3 2024, indicating an improvement in financial performance[20] - The company reported a basic and diluted net loss per Class A common share of $0.18 for Q3 2025, compared to $0.68 for Q3 2024[19] - The company experienced a comprehensive loss attributable to Maravai LifeSciences Holdings, Inc. of $25.55 million for Q3 2025, compared to $97.07 million for Q3 2024[20] - For the three months ended September 30, 2025, the net loss was $45,057,000, compared to a net loss of $172,455,000 for the same period in 2024[23] - The company reported a net loss of $45.1 million for the three months ended September 30, 2025, compared to a net loss of $172.5 million in the same period of 2024[161] - Basic and diluted net loss per Class A common share for the three months ended September 30, 2025, was $(0.18), an improvement from $(0.68) in the same period of 2024[128] Revenue Breakdown - For the nine months ended September 30, 2025, total revenue was $135.88 million, down from $202.63 million in the same period of 2024, indicating a decrease of about 32.9%[42][43] - Nucleic Acid Production segment revenue for the three months ended September 30, 2025, was $25.35 million, compared to $53.84 million in the same period of 2024, reflecting a decline of approximately 53.0%[42][43] - Biologics Safety Testing segment revenue for the three months ended September 30, 2025, was $16.28 million, down from $15.18 million in the same period of 2024, showing an increase of about 7.3%[42][43] - Total revenue for the three months ended September 30, 2025, was $25.4 million in Nucleic Acid Production and $16.3 million in Biologics Safety Testing, compared to $53.8 million and $15.2 million for the same period in 2024[162] - For the nine months ended September 30, 2025, total revenue was $85.2 million in Nucleic Acid Production and $50.7 million in Biologics Safety Testing, down from $154.4 million and $48.2 million in 2024[163] Expenses and Costs - Total operating expenses in Q3 2025 were $46.69 million, significantly lower than $197.85 million in Q3 2024, primarily due to a reduction in goodwill impairment[19] - Selling, general and administrative expenses were $35.4 million and $113.5 million for the three and nine months ended September 30, 2025, respectively, compared to $39.1 million and $120.5 million in 2024[164] - Research and development expenses for the nine months ended September 30, 2025, were $13.61 million, slightly down from $14.66 million in the same period of 2024[19] - Research and development expenses for the three and nine months ended September 30, 2025, were $3.8 million and $13.6 million, respectively, compared to $4.7 million and $14.7 million for the same periods in 2024[165] - Total costs of revenue for the three months ended September 30, 2025, were $25.0 million, compared to $25.2 million in the same period of 2024, indicating a slight decrease[161] Cash and Assets - Cash and cash equivalents decreased to $243.57 million as of September 30, 2025, from $322.40 million as of December 31, 2024[17] - Total assets decreased to $849.19 million as of September 30, 2025, down from $1,008.24 million as of December 31, 2024[17] - Total stockholders' equity attributable to Maravai LifeSciences Holdings, Inc. was $245.44 million as of September 30, 2025, a decrease from $325.29 million as of December 31, 2024[17] - Total stockholders' equity as of September 30, 2025, was $431,859,000, a decrease from $612,699,000 as of September 30, 2024[24] - Cash and cash equivalents at the end of the period were $243,574,000, down from $578,157,000 at the end of September 2024[27] Goodwill and Impairment - The Company incurred a goodwill impairment of $42,884,000 for the nine months ended September 30, 2025[27] - The Company's goodwill balance as of September 30, 2025, was $129.429 million, down from $159.878 million as of December 31, 2024, primarily due to a $42.884 million impairment in the Nucleic Acid Production segment[82] - Goodwill impairment of $12.4 million was recorded for the TriLink reporting unit in Q1 2025, and $30.4 million for the Alphazyme reporting unit in Q2 2025 due to lower projected revenues[177][178] Corporate Actions and Plans - The Company implemented a corporate realignment plan in August 2025, terminating approximately 25% of its workforce to reduce operating costs and focus on sustainable long-term growth[79] - Restructuring charges for the three months ended September 30, 2025, totaled $7.386 million, with severance and other compensation expenses accounting for $6.448 million[80] - The company expects the 2025 Corporate Realignment Plan to lower annualized expenses by more than $50.0 million through headcount and non-headcount-related reductions[174] - The company is implementing a phased approach to the 2025 Corporate Realignment Plan, with completion anticipated by the end of Q3 2026[172] Acquisitions - The Company completed the acquisition of Molecular Assemblies for a total purchase consideration of $11.2 million, with $9.2 million paid in cash[63] - The acquisition of Officinae Bio was completed for a total purchase consideration of $15.1 million, with $9.9 million paid in cash[72] - The estimated fair value of identifiable assets acquired from Molecular included $4.57 million in property and equipment and $3.2 million in intangible assets[66] - The estimated fair value of identifiable intangible assets acquired from Officinae included $8.1 million for developed technology and $80,000 for customer relationships[76] Tax and Liabilities - The effective tax rate for the three months ended September 30, 2025, was 0.2%, compared to (0.2)% for the same period in 2024[131] - The Company had unrecognized tax benefits of $0.4 million as of September 30, 2025, down from $3.6 million as of December 31, 2024[133] - The Company had no outstanding liabilities under the Tax Receivable Agreement (TRA) as of September 30, 2025[143] Inventory and Current Liabilities - Total inventory decreased from $50.1 million as of December 31, 2024, to $45.3 million as of September 30, 2025[102] - Accrued expenses and other current liabilities increased from $39.6 million as of December 31, 2024, to $48.1 million as of September 30, 2025[103]

Financial Performance - Total net revenues for the three months ended September 30, 2025, were $323.3 million, an increase from $314.6 million in the same period of 2024, representing a growth of 2.3%[15] - Net interest income for the three months ended September 30, 2025, was $3.1 million, compared to a net expense of $0.8 million in the same period of 2024[15] - Gain on origination and sale of loans for the three months ended September 30, 2025, was $201.3 million, up from $198.0 million in the same period of 2024, reflecting a growth of 1.2%[15] - Total expenses for the three months ended September 30, 2025, were $333.6 million, compared to $311.0 million in the same period of 2024, an increase of 7.3%[15] - The net loss attributable to loanDepot, Inc. for the three months ended September 30, 2025, was $4.9 million, compared to a net income of $1.4 million in the same period of 2024[15] - The company reported a net loss of $(8,734,000) for the quarter ending September 30, 2025, compared to a net loss of $(4,882,000) for the previous quarter, indicating a deterioration in financial performance[18] - Net loss for the nine months ended September 30, 2025, was $74,704 thousand, compared to a net loss of $134,685 thousand for the same period in 2024, representing a 44.5% improvement[22] - The Company reported a net loss allocated to common stockholders of $4.882 million for the three months ended September 30, 2025, and $40.166 million for the nine months ended September 30, 2025[112] Assets and Liabilities - Cash and cash equivalents as of September 30, 2025, were $459.2 million, an increase from $421.6 million as of December 31, 2024[13] - Total assets as of September 30, 2025, were $6.245 billion, a slight decrease from $6.344 billion as of December 31, 2024[13] - Total liabilities as of September 30, 2025, were $5.812 billion, down from $5.837 billion as of December 31, 2024[13] - The company reported a retained deficit of $592.4 million as of September 30, 2025, compared to $550.6 million as of December 31, 2024[13] - The total outstanding debt obligations net amounted to $2,090.9 million, an increase from $2,027.2 million as of December 31, 2024, reflecting a growth of approximately 3.1%[93] Equity and Shares - The weighted average shares outstanding for basic earnings per share for the three months ended September 30, 2025, were 211,442,981, compared to 185,385,271 for the same period in 2024[15] - As of September 30, 2024, the total equity of the company stands at $592,049,000, reflecting an increase from $578,938,000 as of June 30, 2024, representing a growth of approximately 2%[18] - The number of common shares outstanding increased from 85,982,810 on June 30, 2024, to 90,509,784 on September 30, 2024, marking an increase of approximately 5.9%[18] - The balance of Class A common stock increased to 90,509,784 shares as of September 30, 2024, from 85,982,810 shares as of June 30, 2024, reflecting a growth of approximately 5.9%[18] Cash Flow and Operating Activities - Cash used in operating activities for the nine months ended September 30, 2025, was $68,850 thousand, significantly reduced from $905,982 thousand in 2024[22] - Total cash and cash equivalents and restricted cash at the end of the period was $525,872 thousand, down from $578,641 thousand at the end of September 2024[24] - Net cash provided by investing activities for the nine months ended September 30, 2025, was $22,892 thousand, a significant decrease from $459,874 thousand in 2024[24] Loan Origination and Sales - Proceeds from sales of loans for the nine months ended September 30, 2025, were $19,079,417 thousand, an increase from $16,742,208 thousand in 2024[22] - The Company originated and purchased loans totaling $6,398,006 during the three months ended September 30, 2025, compared to $6,545,027 in the same period of 2024[52] - The total gain on origination and sale of loans, net for the three months ended September 30, 2025, was $201,304, compared to $198,027 for the same period in 2024[53] Servicing Rights and Fees - The outstanding principal balance of the servicing portfolio increased to $118,228,146 as of September 30, 2025, from $115,971,984 as of December 31, 2024[59] - Total servicing fee income for the nine months ended September 30, 2025, was $324,270, compared to $373,273 for the same period in 2024, a decline of 13.1%[60] - The fair value of servicing rights, net, as of September 30, 2025, was $1,618,259, slightly up from $1,615,510 as of December 31, 2024[61] Risk and Compliance - The Company was in compliance with all financial covenants as of September 30, 2025, including minimum levels of profitability and liquidity[93] - The Company has been named as a defendant in 23 putative class action cases related to a cybersecurity incident, with a settlement agreement granted final approval on August 25, 2025[124] - The Company believes it has substantial defenses against the Telephone Consumer Protection Act class action lawsuit filed in June 2022, which seeks actual and statutory damages[129] Market Conditions and Future Outlook - The Company anticipates that interest rates will remain the primary benchmark for market risk for the foreseeable future, affecting loan origination volumes and margins[227] - Prepayment risk is influenced by interest rates and borrower actions, affecting the carrying value of servicing rights and expected servicing income[234]

Financial Performance - For the three months ended September 30, 2025, the Company reported bookings of $50,476,000, a decrease from $2,222,000 in the same period of 2024[91]. - The gross profit for the three months ended September 30, 2025, was $287,000, resulting in a gross margin of 46.1%, compared to a gross profit of $322,000 and a gross margin of 48.4% in the same period of 2024[96]. - Adjusted gross profit for the three months ended September 30, 2025, was $303,000, with an adjusted gross margin of 48.7%, compared to $373,000 and 56.1% in the same period of 2024[99]. - The net loss for the three months ended September 30, 2025, was $(2,409,000), an improvement from a net loss of $(2,760,000) in the same period of 2024[96]. - Net revenue decreased by $43,000, or 6.5%, to $622,000 for the three months ended September 30, 2025, compared to $665,000 in 2024[112]. - Total gross profit decreased by $35,000, or 10.9%, to $287,000 for the three months ended September 30, 2025, compared to $322,000 in 2024[114]. - Total gross profit decreased by $480,000, or 36.5%, to $836,000 for the nine months ended September 30, 2025, compared to $1,316,000 in 2024[116]. Revenue Breakdown - Software subscriptions and services revenue decreased by $18,000, or 3.9%, to $446,000 for the three months ended September 30, 2025, compared to $464,000 in 2024[112]. - Advertising revenue decreased by $25,000, or 12.4%, to $176,000 for the three months ended September 30, 2025, compared to $201,000 in 2024[112]. - Software subscriptions and services gross margin decreased to 38.1% for the three months ended September 30, 2025, compared to 41.8% in 2024[114]. Operating Expenses - Operating expenses increased by $275,000, or 7.8%, to $3,787,000 for the three months ended September 30, 2025, compared to $3,512,000 in 2024[117]. - Sales and marketing expense increased by $181,000, or 29.2%, to $800,000 for the three months ended September 30, 2025, compared to $619,000 in 2024[118]. - Research and development expense increased by $67,000, or 10.9%, to $679,000 for the three months ended September 30, 2025, compared to $612,000 in 2024[122]. - Total operating expenses increased by $3,096,000, or 30.0%, to $13,410,000 for the nine months ended September 30, 2025, compared to $10,314,000 in 2024[117]. Cash Flow and Capital - As of September 30, 2025, the company held total cash of $103.8 million, all in the United States, while continuing to experience operating losses and negative cash flows[126]. - The company utilized $9.3 million in cash from operating activities during the nine months ended September 30, 2025, resulting in a net loss of $9.3 million, which included non-cash charges of $0.6 million[134]. - In comparison, during the same period in 2024, the company used $10.6 million in cash from operating activities, leading to a net loss of $7.7 million[135]. - Management believes it has sufficient cash on hand for at least one year following the filing date of the Quarterly Report despite anticipated operating losses[129]. - The company expects future capital requirements to depend on growth pace, subscription renewals, and investments in AI technology and infrastructure, indicating potential future acquisitions[130]. AI Investments - The Company is investing in artificial intelligence (AI) technologies, including generative AI and agentic AI, to enhance mobile app development and customer engagement[82][88]. - The AI Concierge feature is currently in pilot testing with existing customers, aimed at improving user engagement and monetization opportunities[86]. - The Guest Services Agent feature, designed for hospitality applications, is still in development and testing phases[87]. - The Company does not expect to be profitable in the near future but plans to continue investing in product development and market expansion[89]. Backlog and Deferred Revenue - As of September 30, 2025, the backlog was $2,687,000, down from $3,635,000 as of December 31, 2024, while deferred revenue increased to $2,083,000 from $1,562,000[91]. - Approximately 48% of the backlog as of September 30, 2025, is expected to be invoiced in the subsequent 12-month period[90]. Other Income - Other income for the three months ended September 30, 2025, was approximately $1.1 million, compared to $0.4 million for the same period in 2024, primarily due to interest income from cash and cash equivalents[124]. - For the nine months ended September 30, 2025, total other income was approximately $3.3 million, up from $1.3 million in 2024, driven by increased interest income and a prior gain on extinguishment of debt[125]. Financing Activities - The company sold 14,210 shares of common stock under its Equity Distribution Agreement with Canaccord for gross cash proceeds of approximately $0.1 million during the nine months ended September 30, 2025[128]. - Financing activities in the nine months ended September 30, 2025, included various sales of common stock, with net cash provided by financing activities amounting to $80 thousand[132]. - The company did not engage in any investing activities during the nine months ended September 30, 2025, and 2024[137].

Revenue and Income - Total segment revenue for the three months ended September 30, 2025, was $116.3 million, compared to $87.2 million in rental revenue[298]. - Rental income decreased to $87.2 million for the three months ended September 30, 2025, down from $97.8 million in 2024, primarily due to asset sales and deconsolidations[305]. - Total revenues for the same property market rate multifamily units increased by 2.1% for the three months ended September 30, 2025, compared to the same period in 2024[302]. - Total segment revenue for the nine months ended September 30, 2025, was $379.8 million, compared to $395.0 million for the same period in 2024[331][332]. - Total revenue for Q3 2025 was $116.4 million, a decrease of 8.7% from $127.5 million in Q3 2024[420]. - Total income from unconsolidated investments for Q3 2025 was $34.5 million, compared to $20.3 million in Q3 2024[422]. Adjusted EBITDA and Performance Metrics - Segment Adjusted EBITDA for the same period was $130.6 million, with $50.9 million from rental and $79.7 million from co-investments[298]. - Adjusted EBITDA is used by management to analyze business performance, excluding non-cash related expenses[15]. - Segment Adjusted EBITDA increased to $130.6 million for the three months ended September 30, 2025, up from $80.5 million in the same period of 2024, reflecting a growth of 62.1%[300]. - Adjusted EBITDA for the three months ended September 30, 2025, was $125.2 million, significantly higher than $66.4 million in 2024, reflecting a year-over-year increase of 88.5%[410]. - Segment Adjusted EBITDA for the nine months ended September 30, 2025, was $392.6 million, compared to $361.9 million for the same period in 2024[331][332]. - Same Property NOI (Net Effective) for the nine months ended September 30, 2025, was $248.4 million, compared to $246.7 million in the same period of 2024[422]. Net Loss and Comprehensive Loss - Net loss attributable to Kennedy-Wilson Holdings, Inc. common shareholders was $21.2 million for the three months ended September 30, 2025[298]. - GAAP net loss to common shareholders was $77.4 million for the three months ended September 30, 2024, compared to a net loss of $21.2 million for the same period in 2025, indicating a significant improvement[300]. - The company experienced a comprehensive loss of $25.3 million for the three months ended September 30, 2025, compared to a loss of $45.2 million in the same period in 2024[329]. - For the nine months ended September 30, 2025, the net loss was $34.2 million, compared to a net loss of $77.4 million in 2024, indicating a 55.8% improvement[411]. - The company recorded a loss from unconsolidated investments of $34.5 million for the three months ended September 30, 2025, compared to a loss of $20.3 million in 2024[315]. Expenses and Interest - Total segment expenses amounted to $67.4 million, with $47.4 million from rental and $20.0 million from co-investments[298]. - Rental segment expenses included $34.7 million, while compensation and related expenses totaled $19.6 million[298]. - Interest expense decreased to $34.4 million for the three months ended September 30, 2025, down from $41.3 million in 2024, due to a decline in consolidated mortgage balances[311]. - Interest expense decreased to $108.6 million for the nine months ended September 30, 2025, compared to $120.6 million in 2024, due to reduced consolidated mortgage balances[347]. - The company reported interest expense of $182.3 million for the nine months ended September 30, 2025, down from $195.4 million in 2024, representing a decrease of 5.3%[411]. Real Estate and Acquisitions - The company completed $253.1 million in gross real estate acquisitions during the three months ended September 30, 2025, with a 14.1% ownership interest[302]. - The company acquired nine multifamily properties and industrial properties for $682.8 million, with a weighted-average ownership interest of 13.0%[342]. - Gain on sale of real estate, net was a loss of $65.4 million for the nine months ended September 30, 2025, compared to a gain of $112.8 million in the same period in 2024[341]. Cash Flow and Financing Activities - Net cash used in operating activities for the nine months ended September 30, 2025, was $17.5 million, compared to $25.5 million provided in the same period of 2024[384]. - Net cash provided by investing activities for the nine months ended September 30, 2025, was $591.7 million, significantly higher than $258.2 million in 2024[385][386]. - Net cash used in financing activities totaled $413.2 million for the nine months ended September 30, 2025, compared to $237.8 million in 2024[387][388]. - The company repurchased $9.2 million of its common stock under the share repurchase plan during the nine months ended September 30, 2025[387]. - The board of directors authorized an expansion of the share repurchase plan from $250 million to $500 million, with $100.9 million remaining as of September 30, 2025[378]. Debt and Obligations - Total contractual cash obligations amounted to $4,657.8 million, with $444.8 million due in less than one year[389]. - Total borrowings include $2,384.4 million in mortgage debt, $1,800.0 million in senior notes, and $352.5 million in KWE unsecured bonds[389]. - The Company issued $500.0 million of 4.750% senior notes due 2029 and $500.0 million of 5.000% senior notes due 2031, with additional notes issued later[392]. - The Company has $102.3 million outstanding on its Third A&R Facility, with $447.7 million available to be drawn as of September 30, 2025[396]. - The Third A&R Facility has a maturity date of September 12, 2027, with an option to extend by one year[395]. Development Projects - The company is nearing completion of a 10-year development pipeline totaling $5 billion, with 420 multifamily units actively being developed[370]. - The company expects to spend an additional $21.0 million to complete the currently active development project, fully funded with a property-level construction loan[370]. - The company is developing 1,960 affordable and/or age-restricted multifamily units within its VHH platform, expecting no cash equity basis at completion due to the use of property-level debt[371]. - The company has seven unstabilized assets totaling 1.4 million commercial square feet and 150 hotel rooms, with projected costs to complete of $21.3 million[375]. Foreign Currency and Other Income - The company recorded unrealized foreign currency translation gains of $73.0 million for the nine months ended September 30, 2025, driven by the strengthening of the Euro and GBP against the US Dollar[364]. - Other income increased to $0.2 million for the three months ended September 30, 2025, compared to a loss of $8.3 million for the same period in 2024[326].

Merger and Expansion - California BanCorp completed an all-stock merger with CALB on July 31, 2024, resulting in CALB's total loans of $1.43 billion, total assets of $1.91 billion, and total deposits of $1.64 billion[217]. - The merger expanded California BanCorp's footprint into Northern California, adding one full-service bank branch and four loan production offices, increasing the total to 14 branches[217]. - The merger with CALB, completed on July 31, 2024, significantly impacted financial results, contributing to higher average interest-earning assets[249]. Financial Performance - Net income for Q3 2025 was $15.7 million, or $0.48 per diluted share, compared to $14.1 million, or $0.43 per diluted share in Q2 2025, reflecting a $2.4 million increase in pre-tax, pre-provision income[250]. - For Q3 2025 compared to Q3 2024, net income increased by $32.1 million, primarily due to a $5.6 million rise in net interest income and a $23.0 million decrease in the provision for credit losses[251]. - For the nine months ended September 30, 2025, net income was $46.6 million, or $1.42 per diluted share, compared to a net loss of $11.3 million, marking a $58.0 million increase in net income year-over-year[252]. - The company reported a net income of $15,684,000 for the three months ended September 30, 2025, compared to a net loss of $16,464,000 in the same period of 2024[236]. - The efficiency ratio improved to 51.7% for the three months ended September 30, 2025, compared to 98.9% in the same period of 2024[236]. - Adjusted net income (non-GAAP) for Q3 2025 was $15.7 million, compared to $9.1 million for the same period in 2024[251]. Asset and Loan Management - Total loans, including loans held for sale, were $2,996,984,000 as of September 30, 2025, down from $3,156,345,000 as of December 31, 2024[237]. - The total loans held for investment decreased to $2.99 billion at September 30, 2025, a decline of $148.9 million from $3.14 billion at December 31, 2024, representing 72.9% of total assets[330]. - Loan originations for the nine months ended September 30, 2025, totaled $334.1 million, offset by net paydowns of $79.2 million and charge-offs of $7.6 million[330]. - The total balance of commercial real estate loans was $1,759.7 million, with the largest segments being industrial (29.2%) and retail (15.7%)[334]. - The weighted average loan-to-value (LTV) ratio for the total CRE portfolio was 48% as of September 30, 2025[335]. - Delinquent loans amounted to $3.2 million, representing 0.11% of total loans held for investment, a decrease from 0.39% at December 31, 2024[339]. Credit Quality and Risk Management - California BanCorp's credit risk in the total loan portfolio has improved, reflected in the reversal of provision for loan losses over three consecutive quarters[228]. - Nonperforming loans decreased to $15,600,000 as of September 30, 2025, from $26,536,000 as of December 31, 2024[237]. - The allowance for loan losses decreased to $41,292,000 as of September 30, 2025, from $50,540,000 as of December 31, 2024[237]. - The allowance for loan losses (ACL) was $43.57 million at the end of the period, reflecting a decrease from $53.64 million at the beginning of the nine months ended September 30, 2025[354]. - The company had no consumer solar loans over 90 days past due as of September 30, 2025, compared to $150 thousand as of December 31, 2024[339]. - Special mention loans increased by $29.1 million to $98.4 million as of September 30, 2025, primarily due to $63.0 million in downgrades from pass rated loans[341]. Deposits and Funding - Total deposits increased to $3.46 billion at September 30, 2025, from $3.40 billion at December 31, 2024, with a weighted average interest rate of 1.5%[367]. - Noninterest-bearing demand deposits accounted for 35.8% of total deposits at September 30, 2025, compared to 37.0% at December 31, 2024[367]. - Average total deposits for the three months ended September 30, 2025, were $3.39 billion with a weighted average rate of 1.59%, compared to $3.07 billion and 2.09% for the same period in 2024[374]. - Total interest-bearing liabilities for the three months ended September 30, 2025, were $2,261,376 thousand, with total interest expense of $14,673 thousand[253]. - The cost of deposits was 1.59% for the three months ended September 30, 2025, with total deposits of $3,391,737 thousand[253]. Capital and Liquidity - Total shareholders' equity rose to $564.7 million at September 30, 2025, an increase of $52.9 million from $511.8 million at December 31, 2024, primarily due to net income of $46.6 million[379]. - The tangible book value per common share increased to $13.39 at September 30, 2025, compared to $11.71 at December 31, 2024[381]. - The total liquidity ratio was 21.7% at September 30, 2025, significantly higher than 15.7% at December 31, 2024[384]. - The company had total available borrowing capacity of $1.19 billion at September 30, 2025[390]. - The leverage capital ratio and total risk-based capital ratio were 11.17% and 14.74%, respectively, at September 30, 2025[383]. Income and Expense - Total noninterest income for the nine months ended September 30, 2025 was $8.1 million, an increase of 113% compared to $3.8 million for the same period in 2024[290]. - Total noninterest expense for Q3 2025 was $23.4 million, a decrease of $1.5 million from $24.8 million in Q2 2025[293]. - Total noninterest expense for Q3 2025 decreased by $14.3 million compared to $37.7 million in Q3 2024, mainly due to the absence of $14.6 million in merger-related costs[295]. - Income tax expense for Q3 2025 was $6.1 million, with an effective rate of 28.1%, compared to an income tax benefit of $6.1 million in Q3 2024[307]. - The company repurchased 89,500 shares at a weighted average market price of $15.22, totaling $1.4 million during the three and nine months ended September 30, 2025[381].

Company Operations - As of September 30, 2025, the company operates 623 senior living communities across 41 states, serving approximately 57,000 residents[97]. - The number of communities decreased by 26 to 593 as of September 30, 2025, compared to 619 in 2024, reflecting ongoing strategic adjustments[141]. - The company operates 221 communities under long-term leases, with the majority structured as master leases[183]. Financial Performance - For the three months ended September 30, 2025, resident fees increased by 4.2% to $775.1 million compared to $743.7 million in the same period of 2024[108]. - The net loss for the three months ended September 30, 2025, was $114.7 million, an increase of 126.2% compared to a loss of $50.7 million in the prior year[108]. - Adjusted EBITDA for the same period increased by 20.4% to $111.1 million, attributed to higher resident fees and decreased cash facility operating lease payments[111]. - Resident fees for the nine months ended September 30, 2025, were $2,328,208, reflecting a 4.5% increase from $2,227,679 in 2024, driven by a 4.9% increase in same community RevPAR[136]. - Net loss for the nine months ended September 30, 2025, was $222,770, an increase of 88.7% from a loss of $118,057 in 2024, largely due to higher impairment charges and operational expenses[138]. - Adjusted EBITDA increased by 22.5% to $352,260 for the nine months ended September 30, 2025, attributed to higher resident fees and decreased cash facility operating lease payments[139]. Revenue and Expenses - Facility operating expenses rose by 3.4% to $567.0 million, primarily due to a 5.1% increase in same community facility operating expenses[109]. - General and administrative expenses increased by $5,937,000 (13.2%) to $50,866,000 compared to $44,929,000 in 2024[125]. - Facility operating expenses increased by $57,950, reaching $1,686,289 for the nine months ended September 30, 2025, primarily due to wage rate increases and other operational costs[137]. - General and administrative expenses increased by 11.9% to $153.7 million, primarily due to $8.8 million in organizational restructuring costs[154]. Asset Management - The company completed the acquisition of 25 senior living communities for $135.0 million, funded through mortgage financing and cash on hand[99]. - The company has executed a capital recycling program, exiting non-strategic or underperforming assets, including the sale of 10 owned communities and the disposal of 15 communities through lease termination[101]. - The company reported a significant asset impairment of $62,696,000 in 2025, compared to only $934,000 in 2024[125]. - Non-cash impairment charges totaled $62.7 million for the three months ended September 30, 2025, compared to $0.9 million in the same period of 2024, primarily due to planned dispositions of underperforming communities[128]. Debt and Liquidity - The company had $4.3 billion in outstanding debt at a weighted average interest rate of 5.18% as of September 30, 2025[169]. - Total liquidity decreased to $351.6 million as of September 30, 2025, down from $389.3 million at the end of 2024[171]. - The company has $98.8 million and $227.1 million of mortgage notes payable maturing in January 2026 and October 2026, respectively[175]. - The revolving credit facility has an expanded commitment amount of up to $100.0 million, maturing in January 2027[181]. Operational Metrics - The same community RevPAR increased by 5.3%, driven by a 2.0% increase in same community RevPOR and a 260 basis point increase in same community weighted average occupancy[108]. - The weighted average occupancy increased by 290 basis points to 81.8% in 2025 from 78.9% in 2024[113]. - Weighted average occupancy improved by 210 basis points to 80.4% for the nine months ended September 30, 2025, compared to 78.3% in 2024[141]. - RevPAR improved to $6,087, a 3.4% increase from $5,886 in the prior year[150]. Cash Flow - Net cash provided by operating activities increased by 51.7% to $183.5 million from $121.0 million in 2024[164]. - Adjusted Free Cash Flow improved to $45.5 million, a significant increase from a negative $18.0 million in the previous year[164]. - The company reported net cash provided by operating activities of $76.525 million for the three months ended September 30, 2025, compared to $66.455 million for the same period in 2024, reflecting a 16.4% increase[203]. - Adjusted Free Cash Flow for the three months ended September 30, 2025, was $21.794 million, compared to $13.853 million in the same period of 2024, indicating a 57.1% increase[203].

Financial Performance - Total revenue for the nine months ended September 30, 2025, was $500,000, compared to no revenue for the same period in 2024[21]. - The net loss for the three months ended September 30, 2025, was $2,437,000, compared to a net loss of $1,091,000 for the same period in 2024, indicating an increase in loss of approximately 123.8%[25]. - As of September 30, 2025, Exicure, Inc. reported a net loss of $2,048,000, compared to a net loss of $2,520,000 for the same period in 2024, indicating an 18.7% improvement in losses year-over-year[34]. - The company reported a basic and diluted loss per common share of $0.39 for the three months ended September 30, 2025, compared to $0.57 for the same period in 2024[21]. - The Company reported total revenues of $0 for the three months ended September 30, 2025, compared to $50,000 for the same period in 2024[104]. - The Company incurred a total operating expense of $2,391,000 for the three months ended September 30, 2025, compared to $2,572,000 for the same period in 2024[104]. Assets and Liabilities - Total current assets decreased from $13,673,000 on December 31, 2024, to $5,439,000 on September 30, 2025, representing a decline of approximately 60.2%[19]. - Cash and cash equivalents decreased from $12,508,000 on December 31, 2024, to $4,438,000 on September 30, 2025, a decline of about 64.6%[19]. - The accumulated deficit increased from $199,264,000 on December 31, 2024, to $201,312,000 on September 30, 2025, reflecting a rise of approximately 1%[19]. - Total liabilities increased slightly from $8,284,000 on December 31, 2024, to $8,340,000 on September 30, 2025[19]. - As of September 30, 2025, total financial liabilities measured at fair value are $5,787,000, all classified as Level 3 liabilities[115]. Cash Flow and Operating Activities - The company experienced a net cash used in operating activities of $7,408,000 for the nine months ended September 30, 2025, significantly higher than the $2,065,000 used in the same period of 2024[34]. - Cash, cash equivalents, and restricted cash at the end of the period were $4,438,000, down from $12,508,000 at the beginning of the period, reflecting a decrease of 64.6%[34]. - The company expects to incur significant expenses and negative cash flows for the foreseeable future, necessitating additional funding[51]. Strategic Alternatives and Uncertainties - The company has substantial uncertainties regarding its ability to raise additional capital needed to fund operations and strategic alternatives due to a lack of revenue source[12]. - The company is exploring strategic alternatives to maximize stockholder value, which may involve unexpected costs and liabilities[12]. - As of September 30, 2025, Exicure's management expressed substantial doubt about the company's ability to continue as a going concern due to insufficient cash to fund operations[50]. Acquisitions and Collaborations - Exicure acquired GPCR Therapeutics USA Inc. for $1,600,000, which included the purchase of 6,000,000 common shares[40]. - The company entered into a License and Collaboration Agreement with GPCR, requiring milestone payments and recurring royalty payments based on future sales[41]. - GPCR USA is conducting a Phase 2 clinical trial involving GPC-100 for blood cancer patients, with results expected to be announced in Q4 2025[42]. - The total purchase price for the acquisition of GPCR USA was $7,881,000, which included $1,635,000 in cash, $500,000 in equity consideration, and $5,246,000 in fair value of contingent consideration[67]. - The assets acquired included cash and cash equivalents of $45,000, property and equipment valued at $626,000, and intangible assets worth $3,784,000, totaling $9,291,000[67]. - Goodwill recorded from the acquisition amounted to $3,340,000, reflecting the excess of the purchase price over the net fair value of identifiable assets acquired[67]. Legal Proceedings and Settlements - The settlement of the securities class action lawsuit includes a payment of $5,625,000, fully covered by insurance[118]. - The Company is involved in multiple legal proceedings, including derivative lawsuits and a breach of contract claim, which may impact management resources[123]. - The Company recorded an accrual of approximately $1,100,000 for the unsatisfied portion of its self-insured retainer as of September 30, 2024[119]. Accounting and Financial Reporting - The company plans to adopt the new accounting standard ASU 2024-03 for the fiscal year 2027, which will require additional disclosures about specific expense categories[63]. - The company’s annual goodwill impairment review is performed on December 31 each year, assessing qualitative factors to determine potential impairment[61]. - The effective tax rate for the Company was 0% for the nine months ended September 30, 2025, due to generated tax losses and a full valuation allowance against deferred tax assets[107].

Financial Performance - Net revenue for Q3 2025 was $376,038,000, representing a 4.7% increase from $360,344,000 in Q3 2024[28]. - Net income attributable to common stockholders for Q3 2025 was $39,324,000, compared to $38,440,000 in Q3 2024, marking a 2.3% increase[31]. - Basic net income per share increased to $0.62 in Q3 2025 from $0.57 in Q3 2024, a rise of 8.8%[28]. - Operating income for Q3 2025 was $52,885,000, compared to $46,652,000 in Q3 2024, reflecting a 13.0% increase[28]. - Comprehensive income for Q3 2025 was $38,631,000, compared to $42,039,000 in Q3 2024, a decrease of 8.5%[31]. - Total net revenue for the three months ended September 30, 2025 was $376.0 million, an increase of 4.7% from $360.3 million in 2024[110]. - The Company generated $1.1 billion in total net revenue for the nine months ended September 30, 2025, compared to $1.05 billion in 2024, marking a 5.2% increase[110]. - Net income for the nine months ended September 30, 2025, was $107,804 thousand, an increase of 18.5% compared to $90,630 thousand for the same period in 2024[39]. Assets and Liabilities - Total current assets increased to $550,298,000 as of September 30, 2025, up from $516,879,000 at the end of 2024, reflecting a growth of 6.4%[26]. - Total liabilities rose to $256,731,000 as of September 30, 2025, compared to $239,598,000 at the end of 2024, indicating a 7.1% increase[26]. - Total stockholders' equity decreased to $733,153,000 as of September 30, 2025, down from $743,969,000 at the end of 2024, a decline of 1.4%[26]. - Cash and cash equivalents increased to $231,071,000 as of September 30, 2025, up from $217,325,000 at the end of 2024, a growth of 6.0%[26]. - The fair value of cash equivalents and marketable securities as of September 30, 2025, was $199,406,000, compared to $213,374,000 as of December 31, 2024, indicating a decrease of about 6.5%[59]. - The total short-term marketable securities as of September 30, 2025, were valued at $102,482,000, compared to $100,581,000 as of December 31, 2024, indicating an increase of about 1.9%[55]. Cash Flow and Investments - Operating cash flow for the nine months ended September 30, 2025, was $287,547 thousand, up from $214,842 thousand in 2024, reflecting a 33.8% increase[39]. - Free cash flow for the nine months ended September 30, 2025, was $251.4 million, an increase from $188.5 million in 2024, indicating improved cash generation capabilities[166]. - The company reported a net cash used in investing activities of $37,977 thousand for the nine months ended September 30, 2025, compared to $34,440 thousand in 2024[39]. Stock Repurchase and Compensation - The company repurchased common stock amounting to $203,450 thousand during the nine months ended September 30, 2025, compared to $188,399 thousand in the same period of 2024[39]. - The Company's board authorized a stock repurchase program of up to $1.95 billion, with $127.3 million remaining available as of September 30, 2025[91]. - During the nine months ended September 30, 2025, the Company repurchased 5,843,952 shares for an aggregate purchase price of $203.4 million[92]. - Stock-based compensation for the nine months ended September 30, 2025, was $105,125 thousand, a decrease of 16.5% from $123,396 thousand in 2024[39]. - The aggregate fair value of RSUs and PRSUs that vested during the nine months ended September 30, 2025 was $111.5 million, compared to $139.8 million for the same period in 2024[96]. Acquisitions and Investments - The company acquired RepairPal, Inc. for a total purchase consideration of $80,000,000, with the acquisition aimed at expanding its offerings in the auto services advertising vertical[63][64]. - The total purchase consideration for the acquisition of RepairPal was $80,041,000, with cash distributed to RepairPal stockholders amounting to $63,935,000[67]. - Goodwill increased from $130,980,000 as of December 31, 2024, to $135,683,000 as of September 30, 2025, reflecting a measurement period adjustment and currency translation effects[70]. Revenue and Advertising - Advertising revenue for the Services category for the nine months ended September 30, 2025 was $716.2 million, up from $654.3 million in 2024, indicating a growth of 9.5%[110]. - Advertising revenue from Services businesses increased by 7% year over year in Q3 2025, driven by growth in home and auto services categories[117]. - Total advertising revenue for the three months ended September 30, 2025, was $357.4 million, up 4% from $344.4 million in the same period of 2024[127]. Tax and Legal Matters - The provision for income taxes for the nine months ended September 30, 2025 was $44.6 million, an increase from $32.3 million for the same period in 2024[16][32]. - The Company reached a preliminary agreement to settle the CIPA Action for $15.0 million, expected to be partially funded by insurance proceeds[80]. - The Company entered into a five-year $125.0 million senior secured revolving credit facility on April 28, 2023, with an accordion option allowing for an increase of up to $250.0 million[86]. Operational Insights - The company launched two AI-powered call answering services, Yelp Host and Yelp Receptionist, to enhance advertiser value and improve consumer experience[117]. - The company continues to invest in product innovation to drive revenue growth initiatives amid an uncertain macroeconomic environment[116]. - The company expects net revenue and adjusted EBITDA to decrease sequentially in Q4 2025 due to macroeconomic uncertainties and typical seasonality in Services[116].

Financial Performance - The Company reported revenues of $11.0 billion for fiscal year 2025, indicating significant growth in the bullion and coin markets [312]. - Revenues for the three months ended September 30, 2025 increased by $965.7 million, or 35.6%, to $3.681 billion from $2.715 billion in 2024 [344]. - Revenues for the Wholesale Sales & Ancillary Services segment increased by $589.9 million, or 26.5%, to $2.817 billion in Q3 2025 from $2.227 billion in Q3 2024 [366]. - Revenues for the three months ended September 30, 2025 increased by $375.8 million, or 77.0%, to $863.9 million from $488.1 million in 2024 [384]. - The company completed acquisitions of SGI and Pinehurst in February 2025, and AMS in April 2025, contributing to revenue growth [344]. Customer Metrics - The number of new customers increased by 14,100, or 25.5%, to 69,400 in 2025 from 55,300 in 2024 [386]. - The number of total customers increased by 1,143,300, or 36.6%, to 4,265,400 as of September 30, 2025 from 3,122,100 in 2024 [386]. - Direct-to-Consumer ticket volume related to new customers increased by 13,404 tickets, or 34.8%, to 51,950 tickets in 2025 from 38,546 tickets in 2024 [388]. - Direct-to-Consumer total ticket volume increased by 58,785 tickets, or 35.3%, to 225,363 tickets in 2025 from 166,578 tickets in 2024 [388]. - The Direct-to-Consumer average order value increased by $896, or 30.2%, to $3,863 in 2025 from $2,967 in 2024 [389]. Product and Market Expansion - The Company expanded its product portfolio in February 2025 through the acquisition of Spectrum Group International, which includes Stack's Bowers Galleries, enhancing its presence in the rare coin and currency auction market [294]. - The Company acquired Pinehurst Coin Exchange in February 2025, which is one of the nation's largest e-commerce retailers of modern and numismatic coins [305]. - The Direct-to-Consumer segment includes subsidiaries such as JM Bullion and Goldline, providing a broad array of precious metals products through various e-commerce platforms [298]. - The Wholesale Sales & Ancillary Services segment operates as a full-service precious metals company, offering over 2,000 products in various forms [289]. - The Company operates through three reportable segments: Wholesale Sales & Ancillary Services, Direct-to-Consumer, and Secured Lending [286]. Financial Position and Assets - The company's cash and receivables accounted for approximately 81% of total assets as of September 30, 2025 [414]. - The company's precious metals inventory was valued at $1,223.1 million as of September 30, 2025, down from $1,279.5 million as of June 30, 2025 [439]. - Open inventory purchase commitments totaled $1,571.9 million as of September 30, 2025, compared to $1,149.6 million as of June 30, 2025 [440]. - The Trading Credit Facility provided access to $422.5 million as of September 30, 2025, with a maturity date of September 30, 2027 [418]. Expenses and Profitability - Gross profit increased by $29.5 million, or 67.8%, to $72.9 million, with a gross margin percentage increase to 1.980% from 1.600% in 2024 [347][348]. - Selling, general, and administrative expenses rose by $33.2 million, or 124.8%, to $59.8 million, primarily due to increased compensation and advertising costs [350]. - Gross profit for the three months ended September 30, 2025 increased by $28.2 million, or 120.2%, to $51.7 million from $23.5 million in 2024 [390]. - The Direct-to-Consumer segment's profit margin percentage increased by 117.4 basis points to 5.979% from 4.805% in 2024 [391]. - Selling, general, and administrative expenses increased by $23.9 million, or 175.7%, to $37.5 million from $13.6 million in 2024, primarily due to increased compensation and advertising costs [392]. Interest and Loans - As of September 30, 2025, CFC had $103.6 million in secured loans outstanding, with 8% acquired from third parties and approximately 92% originated by CFC [309]. - Interest income decreased by $1.5 million, or 21.4%, to $5.6 million, attributed to lower average monthly loan balances and fewer loans outstanding [352][353]. - Interest expense increased by $2.6 million, or 26.2%, to $12.6 million, driven by higher overall borrowings and increased interest rates [354]. - The number of secured loans at period-end decreased by 138, or 24.6%, to 424 from 562 [352]. - Interest income in the Secured Lending segment decreased by $0.5 million, or 15.8%, to $2.5 million from $3.0 million in 2024, due to lower average monthly loan balances [398]. Risk Management - The Company utilizes forward contracts to hedge commodity price risks, which can significantly impact revenues from period to period [319]. - The Company uses various strategies to manage risks associated with fluctuations in commodity prices for precious metals, including forward and futures contracts [434]. - Foreign exchange risk is managed through foreign currency forward contracts, with maturities generally less than one week, mitigating exposure to currency fluctuations [467]. - The Company manages interest rate risks by increasing secured loan interest rates in response to rising interest rates, although exposure to interest rate risk is considered not material [469]. Acquisitions and Investments - The Company formed a joint venture with Stack's Bowers Galleries and Pinehurst to acquire a 10% interest in AMS, later acquiring the remaining 90% in April 2025 [306]. - The Company values intangible assets at estimated fair values at acquisition date, utilizing discounted cash flow analysis which requires significant judgment [454]. - Goodwill and other indefinite-lived intangibles are evaluated for impairment annually, with quantitative tests performed if fair value is determined to be less than carrying value [456]. - Other income, net for Q3 2025 increased by $2.0 million, or 1,016.5%, to $2.2 million from $0.2 million in Q3 2024, primarily due to fair value adjustments related to acquisitions [356]. Taxation - Income tax expense for Q3 2025 was $0.7 million, a decrease of $1.1 million, or 62.4%, from $1.8 million in Q3 2024, with an effective tax rate of approximately -212.2% [357]. - The Company estimates its provision for income taxes based on statutory tax rates and tax planning opportunities, recognizing interest and penalties related to uncertain tax positions [458].