Financial Performance - Kiora Pharmaceuticals reported a net income of $27,000 for Q3 2025, a significant improvement compared to a net loss of $3.4 million in Q3 2024[7] - The net loss for the three months ended September 30, 2025, was $26,806, a significant improvement compared to a net loss of $3,413,326 in the same period of 2024[16] - The company reported a net loss per common share (basic) of $0.01 for the three months ended September 30, 2025, compared to a loss of $0.81 in 2024[16] - Comprehensive loss income for the three months ended September 30, 2025, was $28,867, compared to a comprehensive loss of $3,242,797 in 2024[16] - The company recognized an income tax benefit of $643,129 for the three months ended September 30, 2025, compared to no tax benefit in the same period of 2024[16] Revenue and Expenses - Total revenue for the nine months ended September 30, 2025, was $16,020,000, compared to $16,000,000 for the same period in 2024[16] - Total operating expenses for the nine months ended September 30, 2025, were $5,520,987, down from $8,945,030 in 2024, indicating a reduction of approximately 38%[16] - Research and development expenses increased to $7,852,267 for the nine months ended September 30, 2025, up from $5,917,868 in 2024, representing a 33% increase[16] - R&D expenses for Q3 2025 were $2.7 million, up from $2.1 million in Q3 2024, primarily due to increased clinical trial activities[6] Cash and Assets - The company ended Q3 2025 with $19.4 million in cash, cash equivalents, and short-term investments, supporting operations into late 2027[4] - Kiora's total current assets decreased to $22.7 million as of September 30, 2025, from $29.7 million at the end of 2024[14] - Total liabilities decreased to $7.5 million as of September 30, 2025, compared to $10.7 million at the end of 2024[14] Collaborations and Trials - Kiora received $1.2 million in reimbursed R&D expenses from Théa for Q2 2025 activities and billed $1.5 million in Q3 2025, with $0.3 million received during the quarter[4] - The ABACUS-2 trial is focused on vision restoration in patients with retinitis pigmentosa, while KLARITY targets patients with inflammatory retinal diseases[2] - Kiora's collaboration with Théa and Senju is crucial for potential registration studies and global commercialization of KIO-301 and KIO-104[2] - The company has expanded patient screening and enrollment for the ABACUS-2 trial, including participants from a functional endpoint validation study[2] General and Administrative Expenses - Kiora maintains a stable G&A spend while increasing R&D investment, partially offset by reimbursements from strategic partners[5] Share Information - The weighted average shares outstanding (basic) increased to 4,289,853 for the three months ended September 30, 2025, compared to 4,214,950 in 2024[16] Interest Income - Interest income for the nine months ended September 30, 2025, was $703,692, a decrease from $813,989 in 2024[16] Fair Value Changes - The company reported a change in fair value of contingent consideration of $(1,721,033) for the three months ended September 30, 2025, compared to $(1,103,991) in 2024[16]

Financial Performance - Total revenue for the nine months ended September 30, 2025, was $16,020,000, a significant decrease compared to $16,000,000 for the same period in 2024[16] - The net loss for the three months ended September 30, 2025, was $26,806, compared to a net loss of $3,413,326 for the same period in 2024, reflecting a substantial improvement[16] - For the nine months ended September 30, 2025, Kiora Pharmaceuticals reported a net loss of $4.32 million compared to a net income of $7.82 million for the same period in 2024[22] - The net loss for the three months ended September 30, 2025, was $26,806, compared to a net loss of $3,413,326 for the same period in 2024[109] Cash and Assets - Cash and cash equivalents increased from $3,792,322 as of December 31, 2024, to $5,508,899 as of September 30, 2025, an increase of approximately 45.3%[14] - The company had unrestricted cash and cash equivalents of $5.51 million and short-term investments of $13.9 million as of September 30, 2025, with an accumulated deficit of $147.7 million[28] - The company’s total cash, cash equivalents, and restricted cash increased to $5.51 million as of September 30, 2025, compared to $3.80 million as of December 31, 2024[48] - Total current assets decreased from $29,706,012 as of December 31, 2024, to $22,693,856 as of September 30, 2025, representing a decline of approximately 23.6%[14] Liabilities and Equity - The total liabilities decreased from $10,724,708 as of December 31, 2024, to $7,452,712 as of September 30, 2025, a reduction of approximately 30.5%[14] - As of September 30, 2025, total stockholders' equity increased to $22,410,742 from $22,127,478 at June 30, 2025, reflecting a growth of approximately 1.3%[18] - The accumulated deficit increased from $(143,382,122) as of December 31, 2024, to $(147,700,755) as of September 30, 2025, indicating a worsening of approximately 3.5%[14] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $7,852,267, compared to $5,917,868 for the same period in 2024, representing an increase of approximately 33%[16] - The Company incurred $1,467,935 in R&D expenses for the quarter ended September 30, 2025, with $1,422,731 reimbursed[114] - The Company recognized an impairment loss of $2.0 million for in-process R&D assets as of August 31, 2024, due to a strategic decision to cease future development[43] Stock and Compensation - Stock-based compensation for the nine months ended September 30, 2025, amounted to $665,788, compared to $496,413 for the same period in 2024, representing a 34% increase[19] - Total stock-based compensation expense for the three months ended September 30, 2025, was $254,398, compared to $171,176 for the same period in 2024, representing a 48.6% increase[77] - The weighted-average grant date fair value of options granted for the nine months ended September 30, 2025, was $2.68, with an expected stock price volatility of 136.6%[78] Investments and Fair Value - The unrealized gain on investments as of September 30, 2025, was $11,214, compared to an unrealized loss of $(16,001) for the same period in 2024, indicating a positive shift in investment performance[19] - As of September 30, 2025, total assets measured at fair value amounted to $17,499,722, with cash equivalents of $3,633,176 and short-term investments of $13,866,546[58] Collaboration and Agreements - The Company entered into an exclusive option agreement with Senju Pharmaceutical Co., Ltd, which includes a non-refundable upfront payment of $1.25 million[82][83] - The License Agreement with Théa Open Innovation included a non-refundable payment of $16.0 million, recognized in the first quarter of 2024[85][86] Future Outlook - The company anticipates having sufficient cash to fund its planned operations into late 2027 without an immediate need to raise additional capital[28] - Kiora has incurred annual losses and negative cash flows since inception, with future losses anticipated[28]

Financial Performance - Q3 2025 revenues reached $246.0 million, a 6.7% increase from $230.5 million in Q3 2024[7] - Net loss for Q3 2025 was $69.8 million, significantly improved from a net loss of $391.5 million in Q3 2024[8] - Adjusted EBITDA for Q3 2025 was $155.1 million, up 9.5% from $141.6 million in Q3 2024, with an Adjusted EBITDA margin of 63.1%[8] - Revenues for the three months ended September 30, 2025, were $245,959,000, representing an increase of 6.36% compared to $230,495,000 for the same period in 2024[29] - Operating income for the three months ended September 30, 2025, was $10,067,000, a significant improvement from a loss of $338,210,000 in the same period of 2024[29] - Net loss for the nine months ended September 30, 2025, was $203,712,000, a reduction from a net loss of $1,507,866,000 for the same period in 2024[31] - The company reported a comprehensive loss of $68,959,000 for the three months ended September 30, 2025, compared to a comprehensive loss of $402,791,000 for the same period in 2024[29] - Net loss for Q3 2025 was $69.753 million, a significant improvement from a loss of $391.450 million in Q3 2024[33] Cash Flow and Assets - Free Cash Flow for Q3 2025 was $(16.3) million, compared to $41.1 million in Q3 2024[8] - The company ended Q3 2025 with $39.2 million in unrestricted cash and cash equivalents[8] - Cash and cash equivalents at the end of the period were $39,152,000, compared to $16,848,000 at the end of 2024, indicating a substantial increase of 132.00%[26] - The company had a net cash provided by operating activities of $51,038,000 for the nine months ended September 30, 2025, down from $141,029,000 for the same period in 2024[31] - Net cash provided by operating activities for Q3 2025 was $19.857 million, down from $72.842 million in Q3 2024[35] Guidance and Projections - Claritev raised its full-year 2025 revenue guidance to a growth range of 2.8% to 3.2% from FY 2024[9] - Adjusted EBITDA margin guidance for FY 2025 was updated to a range of 62.5% to 63.0%[9] Client and Market Developments - Claritev renewed contracts with its top ten clients, with multi-year renewals from its largest clients[5] - The international business continues to expand, representing a significant growth opportunity for the company[5] Expenses and Liabilities - General and administrative expenses for the three months ended September 30, 2025, were $61,893,000, up from $37,725,000 in the same period of 2024, marking a rise of 64.00%[29] - Total current assets increased to $257,458,000 as of September 30, 2025, compared to $175,515,000 as of December 31, 2024, reflecting a growth of 46.67%[26] - Total liabilities as of September 30, 2025, were $5,092,136,000, slightly up from $5,066,805,000 as of December 31, 2024[26] Other Financial Metrics - Unlevered Free Cash Flow for Q3 2025 was $113.201 million, up from $101.337 million in Q3 2024, indicating a 1.7% increase[35] - Interest expense for Q3 2025 increased to $101.232 million from $81.792 million in Q3 2024, representing a 23.5% rise[33] - Adjusted Cash Conversion Ratio for Q3 2025 was 73%, slightly up from 72% in Q3 2024[35] - Total depreciation for the nine months ended September 30, 2025, was $75.775 million, compared to $65.372 million for the same period in 2024[33] - Integration expenses for Q3 2025 were $66, down from $850 in Q3 2024, indicating a reduction in costs associated with integration efforts[33] - The company reported a significant loss on impairment of goodwill and intangible assets amounting to $1.434 billion for the nine months ended September 30, 2024[33]

Financial Performance - Net income for Q3 2025 was $5.9 million, doubling from $2.9 million in Q3 2024[20] - Quarterly revenue reached $30.6 million, a 20% increase year-over-year, driven by growth in ETUARY® and contributions from Etorel® and Contiva®[4] - Basic EPS improved to $0.04 in Q3 2025, compared to $0.01 in Q3 2024[4] - Operating income increased 64% to $6.9 million, with operating expenses growing at a slower pace than revenue[4] - Net income for the nine months ended September 30, 2025, was $11.2 million, a decrease from $17.3 million in 2024, primarily due to a $5.6 million increase in operating expenses[6] - Non-GAAP adjusted net income for the nine months ended September 30, 2025, was $14.6 million, down from $15.7 million in 2024, mainly due to a $3.3 million increase in operating expenses[6] - Non-GAAP adjusted net income for the first nine months of 2025 was $14,618 million, compared to $15,737 million in the same period of 2024, indicating a decrease of 7.1%[39] Revenue and Sales - Sales of ETUARY® for Q3 2025 were $27.7 million, compared to $25.3 million in Q3 2024[7] - Etorel® generated $1.5 million in sales during its first full quarter of launch[7] - Contiva® sales amounted to $1.2 million for Q3 2025[8] - Revenues for the nine months ended September 30, 2025, were $79.4 million, compared to $77.9 million in 2024, reflecting a $1.5 million increase[34] - Gyre Pharmaceuticals' flagship product, ETUARY®, achieved net sales of $105.8 million in 2024, maintaining a prominent market share[28] Expenses and Costs - For the nine months ended September 30, 2025, research and development expenses increased to $8.9 million from $8.3 million in 2024, primarily due to a $1.0 million rise in clinical trial costs[6] - General and administrative expenses rose to $14.1 million for the nine months ended September 30, 2025, compared to $10.6 million in 2024, driven by a $2.8 million increase in personnel and stock compensation costs[6] - Income from operations decreased to $11.4 million for the nine months ended September 30, 2025, down from $15.5 million in 2024, attributed to a $5.6 million increase in total operating expenses[6] - Stock-based compensation expenses increased to $1,147 million in Q3 2025 from $237 million in Q3 2024, reflecting a rise of 384%[39] Cash and Assets - Cash and cash equivalents totaled $80.3 million as of September 30, 2025, up 57% year-to-date[15] - Cash and cash equivalents increased significantly to $40.4 million as of September 30, 2025, from $11.8 million at the end of 2024[36] - Total assets grew to $159.4 million as of September 30, 2025, compared to $125.4 million at the end of 2024[36] Corporate Developments - The company completed patient enrollment in a 52-week Phase 3 trial for pirfenidone, involving 272 patients across 18 sites[4] - Gyre Therapeutics increased its indirect majority interest in Gyre Pharmaceuticals from 65.2% to 69.7% in Q3 2025 through additional capital contributions[28] Tax and Liabilities - Provision for income taxes for Q3 2025 was $1,693 million, up from $1,074 million in Q3 2024, marking an increase of 57.7%[39] - The loss from the change in fair value of warrant liability was $23 million in Q3 2025, a decrease from a gain of $228 million in Q3 2024[39]

Financial Performance - Net income for Q3 2025 was $5.9 million, doubling from $2.9 million in Q3 2024[20] - Basic EPS improved to $0.04 in Q3 2025, compared to $0.01 in Q3 2024[4] - Net income for the nine months ended September 30, 2025, was $11.2 million, a decrease from $17.3 million in 2024, primarily due to a $5.6 million increase in operating expenses[6] - Non-GAAP adjusted net income for the nine months ended September 30, 2025, was $14.6 million, down from $15.7 million in 2024, mainly due to a $3.3 million increase in operating expenses[6] - Non-GAAP adjusted net income for the nine months ended September 30, 2025, was $14,618 million, slightly down from $15,737 million in the same period of 2024, reflecting a decrease of 7.1%[39] Revenue and Sales - Quarterly revenue reached $30.6 million, a 20% increase year-over-year, driven by growth in ETUARY® and contributions from Etorel® and Contiva®[4] - Sales of ETUARY® for Q3 2025 were $27.7 million, compared to $25.3 million in Q3 2024[7] - Etorel® generated $1.5 million in sales during its first full quarter of launch[7] - Contiva® sales amounted to $1.2 million for Q3 2025[8] - Revenues for the nine months ended September 30, 2025, were $79.4 million, compared to $77.9 million in 2024, reflecting a $1.5 million increase[34] - Gyre Pharmaceuticals' flagship product, ETUARY®, achieved net sales of $105.8 million in 2024, maintaining a prominent market share[28] Expenses and Costs - For the nine months ended September 30, 2025, research and development expenses increased to $8.9 million from $8.3 million in 2024, primarily due to a $1.0 million rise in clinical trial costs[6] - General and administrative expenses rose to $14.1 million for the nine months ended September 30, 2025, compared to $10.6 million in 2024, driven by a $2.8 million increase in personnel and stock compensation costs[6] - Income from operations decreased to $11.4 million for the nine months ended September 30, 2025, down from $15.5 million in 2024, attributed to a $5.6 million increase in total operating expenses[6] - Stock-based compensation expenses increased to $1,147 million in Q3 2025 from $237 million in Q3 2024, marking a rise of 384%[39] Cash and Assets - Cash and cash equivalents totaled $80.3 million as of September 30, 2025, up 57% year-to-date[15] - Cash and cash equivalents increased significantly to $40.4 million as of September 30, 2025, from $11.8 million at the end of 2024[36] - Total assets grew to $159.4 million as of September 30, 2025, compared to $125.4 million at the end of 2024[36] Corporate Developments - The company completed patient enrollment in a 52-week Phase 3 trial for pirfenidone pneumoconiosis with 272 patients across 18 sites[6] - The anticipated U.S. IND filing for Hydronidone is expected in 2026, following the completion of ongoing regulatory interactions[10] - Gyre Therapeutics increased its indirect majority interest in Gyre Pharmaceuticals from 65.2% to 69.7% in Q3 2025 through additional capital contributions[28] Tax and Liabilities - Provision for income taxes for Q3 2025 was $1,693 million, compared to $1,074 million in Q3 2024, indicating an increase of 57.7%[39] - The loss from the change in fair value of warrant liability was $23 million in Q3 2025, a decrease from a gain of $228 million in Q3 2024[39]

Revenue and Sales Performance - For the three months ended September 30, 2025, total revenues increased by 20% to $112.67 million compared to $94.08 million in the same period of 2024[155]. - Oil sales for the three months ended September 30, 2025, were $91.96 million, an increase of 8% from $85.50 million in 2024, driven by a 28% increase in production[155]. - Natural gas revenues surged by 142% to $20.71 million for the three months ended September 30, 2025, compared to $8.57 million in 2024, due to a 93% increase in realized prices[155]. - For the nine months ended September 30, 2025, total revenues increased by 26% to $344.82 million compared to $273.72 million in 2024[156]. Pricing and Market Conditions - Average NYMEX oil pricing for the three months ended September 30, 2025, was $65.78 per barrel, which is 14% lower than the $76.43 per barrel in the same period of 2024[150]. - Average realized oil price per barrel after reflecting settled derivatives was $61.64 for the three months ended September 30, 2025, down from $73.99 in 2024[150]. - Average NYMEX natural gas pricing for the three months ended September 30, 2025, was $3.03 per Mcf, a 44% increase from $2.11 per Mcf in 2024[151]. - The oil price differential to the NYMEX benchmark price was a discount of $(4.16) per barrel for the three months ended September 30, 2025, compared to $(2.99) per barrel in 2024[144]. Production and Operational Metrics - The number of net producing wells increased from 195.88 on September 30, 2024, to 235.27 on September 30, 2025, reflecting successful drilling and acquisitions[157]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, were $92.08 million, up from $74.11 million in 2024, reflecting increased lease operating expenses and depletion[153]. - Lease operating expenses for Q3 2025 were $23.6 million ($8.03 per Boe), an 81% increase from $13.0 million ($5.62 per Boe) in Q3 2024[158]. - For the nine months ended September 30, 2025, lease operating expenses totaled $60.0 million ($7.10 per Boe), a 42% increase from $42.2 million ($6.40 per Boe) in the same period of 2024[159]. - Production taxes for Q3 2025 were $5.4 million ($1.83 per Boe), slightly up from $5.3 million ($2.29 per Boe) in Q3 2024, representing 5% of oil and natural gas sales for both periods[160]. - Total general and administrative expenses for Q3 2025 were $7.0 million ($2.38 per Boe), a 25% increase from $5.6 million ($2.41 per Boe) in Q3 2024[166]. Financial Performance - The company recorded a gain on equity investments of $0.5 million for Q3 2025, compared to a loss of $18.3 million in Q3 2024[171]. - Net cash provided by operating activities for the nine months ended September 30, 2025 was $231.9 million, an increase from $207.5 million in the same period of 2024[183]. - Net cash used in investing activities for the nine months ended September 30, 2025 was $280.8 million, primarily due to $233.1 million in capital expenditures and $57.0 million in acquisitions[187]. Debt and Liquidity - As of September 30, 2025, the company had $300.0 million of debt outstanding under its Credit Agreement and $86.5 million of liquidity[175]. - Interest expense for Q3 2025 was $6.1 million, an increase from $4.8 million in Q3 2024, primarily due to a higher average outstanding balance on the revolving credit facility[169]. - As of September 30, 2025, the Company had outstanding borrowings of $300.0 million and $0.3 million of letters of credit, with availability of $74.7 million under the Credit Agreement[191]. - The borrowing base was increased from $325.0 million to $375.0 million on April 29, 2025, and reaffirmed on November 5, 2025[194][200]. - The Company had total indebtedness of $300.0 million under the Credit Agreement as of September 30, 2025, with a potential $3.0 million increase in annual interest expense for a 1% rise in interest rates[219]. Capital Expenditures and Future Plans - The Company issued $350.0 million of 8.875% senior unsecured notes on November 5, 2025, at 96.0% of par, with a maturity date of November 5, 2029[201]. - For 2025, the Company is budgeting approximately $400 million to $420 million in total planned capital expenditures, including $120 million for acquisitions of oil and natural gas properties[206]. - The Company plans to fund capital expenditures with cash generated from operations and, if necessary, borrowings under the Credit Agreement[206]. Compliance and Financial Covenants - The Credit Agreement includes financial covenants requiring a leverage ratio not greater than 3.00 to 1.00 and a current ratio of not less than 1.00 to 1.00[198]. - As of September 30, 2025, the Company was in compliance with all covenants required by the Credit Agreement[199].

Financial Performance - Operating revenues for Q3 2025 were $4,971 million, a decrease of 20.9% compared to $6,288 million in Q3 2024[19] - Net income for Q3 2025 was $652 million, down 64.5% from $1,837 million in Q3 2024[20] - Operating income for the nine months ended September 30, 2025, was $1,432 million, a decline of 58.8% from $3,482 million in the same period of 2024[19] - Net income attributable to Vistra common stock for Q3 2025 was $604 million, a decrease of 67.2% from $1,840 million in Q3 2024[19] - The net income for the quarter ending June 30, 2025, was $652 million, a significant increase from a net loss of $268 million in the previous quarter[33] - The net income for the quarter ending June 30, 2024, was $1,888 million, a substantial increase compared to the previous year's performance[34] Assets and Liabilities - Total current assets increased to $8,381 million as of September 30, 2025, compared to $8,119 million at the end of 2024[22] - Total liabilities rose to $32,797 million as of September 30, 2025, up from $32,187 million at the end of 2024[22] - As of March 31, 2025, the total stockholders' equity was $4,838 million, down from $5,570 million at December 31, 2024, reflecting a decrease of approximately 13.2%[33] - The total equity, including noncontrolling interest, was $5,223 million as of September 30, 2025, down from $5,836 million at March 31, 2025[33] Cash Flow and Expenditures - Cash provided by operating activities for the nine months ended September 30, 2025, was $2,638 million, down from $3,210 million in 2024[28] - Capital expenditures for the nine months ended September 30, 2025, were $1,916 million, compared to $1,648 million in 2024[28] - The company reported a net change in cash, cash equivalents, and restricted cash of $(584) million for the nine months ended September 30, 2025[30] Stock and Dividends - The weighted average shares of common stock outstanding for Q3 2025 were 338,749,454, compared to 342,969,916 in Q3 2024[19] - The company declared dividends of $79 million on common stock and $39 million on preferred stock for the quarter ending June 30, 2025[33] - Stock repurchases totaled $190 million for the quarter ending June 30, 2025, contributing to a cumulative reduction in treasury stock[33] Mergers and Acquisitions - The Energy Harbor Merger resulted in a total purchase price of $4,596 million, with an acquisition date fair value of Energy Harbor at $5,407 million[66] - The company issued $747 million in equity to acquire Energy Harbor, significantly impacting the additional paid-in capital[34] - The company completed the acquisition of seven natural gas generation facilities totaling 2,600 MW for a base purchase price of $1.9 billion, enhancing its geographic diversification[62][63] Incident and Remediation Costs - The company incurred a write-off of approximately $400 million for the net book value of the Moss Landing 300 facility due to the incident, moving the asset to the Asset Closure segment[45] - The estimated total cost for remediation activities related to the Moss Landing 300 site is approximately $110 million, with $29 million already incurred as of September 30, 2025[46] - The total incident expense related to the Moss Landing and Martin Lake incidents was approximately $526 million for the nine months ended September 30, 2025[52] Revenue and Growth - Total revenue from contracts with customers for the nine months ended September 30, 2025, was $12,781 million, an increase from $11,099 million in the same period of 2024, representing a growth of approximately 15.1%[84] - Retail energy charge in ERCOT generated $6,890 million in revenue for the nine months ended September 30, 2025, compared to $6,241 million in 2024, reflecting an increase of 10.4%[84] - Wholesale generation revenue from ISO/RTO reached $2,031 million for the nine months ended September 30, 2025, compared to $1,290 million in 2024, marking a significant increase of 57.5%[84] Debt and Financing - Long-term debt, including amounts due currently, was $15,988 million as of September 30, 2025, compared to $16,298 million as of December 31, 2024[119] - The company has $431 million in Energy Harbor Revenue Bonds, with various due dates extending to 2047[120] - The company has a total of $7,300 million in Senior Unsecured Notes, with significant amounts maturing between 2026 and 2034[120] Derivative Instruments and Fair Value - The company reported a net gain on derivative instruments of $174 million for the three months ended September 30, 2025, compared to a gain of $1.771 billion in the same period of 2024[177] - The fair value of derivative contract liabilities was $(1,432) million, a decrease from $(1,587) million on December 31, 2024[181] - The gross credit risk exposure to derivative contract counterparties was $3,653 million, with a net exposure of $740 million as of September 30, 2025[184] Legal and Regulatory Matters - The company intends to vigorously defend against various legal proceedings, including antitrust and regulatory investigations related to Winter Storm Uri[217] - The company has established adequate reserves for legal proceedings, with potential material impacts on results of operations and financial condition[211]

Revenue Performance - Total revenue for Q3 2025 was $193.9 million, a 15.1% increase from $168.5 million in Q3 2024[6] - The company reported a total revenue of $511.2 million for the nine months ended September 30, 2025, a 12.1% increase from $456.0 million in the same period of 2024[12] - Total revenue for the three months ended September 30, 2025, was $193.892 million, a 15% increase from $168.511 million in the same period of 2024[29] Brokerage Commissions - Brokerage commissions reached $162.2 million, up 14.2% from $142.0 million year-over-year[5] - Real estate brokerage commissions increased to $162.166 million for the three months ended September 30, 2025, compared to $141.970 million in 2024, reflecting a 14.2% growth[29] - Private Client Market brokerage revenue increased by 16.9% to $102.3 million, while Middle Market and Larger Transaction Market revenue rose by 6.5% to $52.5 million[5] Financing and Fees - Financing fees grew by 27.7% to $26.3 million, driven by a 34.4% increase in total financing volume[8] Net Income and Loss - Net income for Q3 2025 was $0.2 million, or $0.01 per diluted share, compared to a net loss of $5.4 million, or $0.14 per diluted share, in Q3 2024[11] - Net income for the three months ended September 30, 2025, was $240, compared to a net loss of $5.385 million in the same period of 2024[29] - The company reported a net loss of $15,217,000 for the nine months ended September 30, 2025, compared to a net loss of $20,910,000 for the same period in 2024[37] Operating Expenses - Total operating expenses for Q3 2025 were $196.3 million, an increase from $180.0 million in Q3 2024, with cost of services as a percentage of total revenue rising to 62.4%[9] - Total operating expenses for the three months ended September 30, 2025, were $196.266 million, up from $179.976 million in 2024, representing an increase of 9.0%[29] Adjusted EBITDA - Adjusted EBITDA for Q3 2025 was $6.9 million, a significant improvement from approximately breakeven in the prior year[11] - Adjusted EBITDA for Q3 2025 was $6,889,000, compared to a loss of $21,000 in Q3 2024[37] - The company uses Adjusted EBITDA as a key performance metric, which excludes items related to capital structure, taxes, and non-cash items[36] - Adjusted EBITDA is not a measurement of financial performance under U.S. GAAP and should not be considered an alternative to net income or operating income[36] - The company emphasizes that Adjusted EBITDA may not be comparable to similar measures used by other companies due to different calculation methods[36] Transaction Volume and Size - Total sales volume reached approximately $12.2 billion for the three months ended September 30, 2025, with 2,289 transactions, including $8.3 billion in real estate brokerage[31] - The average commission per transaction in real estate brokerage was $102,248 for the three months ended September 30, 2025, down from $106,664 in 2024[31] - The average transaction size in real estate brokerage was $5.270 million for the three months ended September 30, 2025, compared to $6.407 million in 2024[31] Assets and Share Repurchase - Total assets decreased to $812.494 million as of September 30, 2025, from $869.800 million at the end of 2024[34] - The company has approximately $59.0 million available for share repurchases under its program, with no established time limit for completion[15] Future Outlook - The company anticipates overcoming near-term challenges in the commercial real estate transaction market, positioning itself for long-term growth[16] Personnel - The company had 1,569 investment sales professionals and 100 financing professionals as of September 30, 2025[31] Interest Income and Expenses - Interest income and other for Q3 2025 was a loss of $3,487,000, compared to a loss of $4,498,000 in Q3 2024[37] - Interest expense for the nine months ended September 30, 2025, was $584,000, slightly down from $611,000 in 2024[37] Depreciation and Stock-Based Compensation - Depreciation and amortization expenses for Q3 2025 were $2,743,000, compared to $4,550,000 in Q3 2024[37] - Total adjustments to net income included $5,966,000 in stock-based compensation for Q3 2025, up from $6,071,000 in Q3 2024[37]

Interest Expense and Income - For the three months ended September 30, 2025, interest expense totaled $14,790,000, a decrease from $27,401,000 in the same period of 2024[51] - For the nine months ended September 30, 2025, interest expense was $49,081,000, down from $83,703,000 in the corresponding period of 2024[51] - The Company capitalizes and amortizes debt issuance costs over the term of the respective debt instrument, impacting interest expense recognition[47] - The Company's net interest margin for the three months ended September 30, 2025, was $8.471 million, down from $11.944 million in the same period of 2024[151] Loans and Investments - The Company monitors its loans held for investment portfolio through borrower review, economic review, property review, and market review[39] - As of September 30, 2025, the Company held 27 loans for investment with an outstanding principal of $1.3 billion, down from $1.7 billion as of December 31, 2024[53] - The total loans held for investment portfolio had a carrying amount of $1.231 billion and an outstanding principal of $1.292 billion as of September 30, 2025[54] - The weighted average unleveraged effective yield for the total loans held for investment portfolio was 6.1% as of September 30, 2025[54] - The Company experienced a loan payoff of $530.6 million during the nine months ended September 30, 2025[61] - The Company continues to monitor and evaluate its loans, making modifications as necessary based on individual circumstances[60] - As of September 30, 2025, the Company had three loans on non-accrual status with a carrying value of $271.8 million, down from five loans valued at $318.4 million as of December 31, 2024[63] - The Company's CECL Reserve for loans held for investment is $117.3 million, representing 880 basis points of the total loans held for investment commitment balance of $1.3 billion[68] Real Estate Assets - The Company evaluates real estate assets held for investment for impairment on a quarterly basis, considering factors such as significant underperformance and economic trends[46] - Total real estate owned held for investment as of September 30, 2025, is valued at $146,137 thousand, net of accumulated depreciation of $12,285 thousand[82] - The Company has no impairment charges recognized for real estate owned held for investment as of September 30, 2025[82] - The net real estate owned held for investment is $133,852 thousand, down from $139,032 thousand as of December 31, 2024[82] Revenue Recognition - Revenue from real estate owned includes operations from properties acquired in September 2024 and June 2024, with a focus on rental revenue from operating leases[49][50] - The Company recognizes rental revenue on a straight-line basis over the lease term when collectability is probable, including variable lease payments[50] - Future minimum lease payments to be collected under non-cancelable operating leases total $107,044 thousand as of September 30, 2025[87] Financial Performance - For the three months ended September 30, 2025, the net income attributable to common stockholders was $4,653,000, compared to a net loss of $5,880,000 for the same period in 2024[106] - Basic earnings per common share for the three months ended September 30, 2025, was $0.08, while for the same period in 2024, it was $(0.11)[106] - The total income tax expense for the nine months ended September 30, 2025, was $280,000, compared to a benefit of $(1,000) for the same period in 2024[109] - Total cash dividends declared for the nine months ended September 30, 2025, amounted to $25.09 million, with a per share amount of $0.45, compared to $41.42 million and $0.75 per share for the same period in 2024[136] Risk Management - A significant increase in interest rates could strain operating cash flows of real estate assets, potentially leading to non-performance or default[230] - The estimated fair value of fixed-rate investments is expected to decrease in a rising interest rate environment, while it would generally increase in a decreasing interest rate environment[234] - Prepayment rates on existing CRE loans can negatively impact net income if they occur faster than anticipated, potentially leading to liquidity issues[235] - The company is subject to risks from defaults by large banking institutions, which could impact liquidity and borrowing capabilities[236] - Continued weakness in financial markets could adversely affect lenders' willingness to provide financing, increasing costs[239] - Real estate investments are subject to volatility from various factors, including economic conditions and rising operating costs, which could pressure cash flow performance[240] - Inflation risks are significant as changes in interest rates may not correlate with inflation rates, potentially leading to lower investment returns[241] Commitments and Facilities - The outstanding balance of the Company's Financing Agreements as of September 30, 2025, is $693,046 thousand, with total commitments of $1,100,000 thousand[88] - The Company has total commitments of $1,332.2 million as of September 30, 2025, down from $1,773.1 million as of December 31, 2024, resulting in total unfunded commitments of $40.6 million[99] - The Secured Term Loan has a total commitment of $100.0 million, with an outstanding principal balance of $100.0 million as of September 30, 2025[96] - The effective interest rate of the Secured Term Loan was 6.1% for the three months ended September 30, 2025, compared to 5.7% for the same period in 2024[97] - The Company has a master repurchase facility with Citibank with a maximum commitment of $325.0 million, which can be increased to $425.0 million[92] - The Wells Fargo Facility allows the Company to borrow up to $450.0 million, with the potential to increase to $500.0 million[91] - The CNB Facility has a maximum commitment of $75.0 million, with no immediate availability as of September 30, 2025[93] Management and Fees - The Company recorded a base management fee of $2.42 million for Q3 2025, down from $2.65 million in Q3 2024, and a total of $7.42 million for the nine months ended September 30, 2025, compared to $8.11 million for the same period in 2024[132] - The incentive fee structure is based on Core Earnings, with no incentive fees incurred for the three and nine months ended September 30, 2025, and 2024[127] - The term of the Management Agreement is set to end on April 25, 2026, with automatic one-year renewal terms thereafter[131] - The Company is responsible for its proportionate share of certain fees and expenses, including due diligence costs, as determined by ACREM and Ares Management[128] - The Company will not reimburse ACREM for salaries and other compensation of its personnel, except for specific allocable shares[129] Acquisitions and Fair Value - The Company recognized a realized loss of $33.0 million for the nine months ended September 30, 2025, due to a discounted payoff on a senior mortgage loan with an outstanding principal of $51.5 million[66] - The Company recognized a realized loss of $5.8 million on the acquisition of an office property in North Carolina, with the property's fair value at acquisition being $60.2 million[77] - The Company recognized a realized loss of $16.4 million on the acquisition of an office property in California, with an estimated fair value of $14.5 million at acquisition[78] - The fair value of loans held for investment is determined based on a discounted cash flow methodology, considering various market factors[123] - The fair value of the office property acquired on September 19, 2024, was estimated using capitalization rates ranging from 6.4% to 11.0% and discount rates from 14.0% to 16.0%[119] - The fair value of the mixed-use property acquired on September 8, 2023, was estimated using capitalization rates ranging from 6.4% to 8.3% and discount rates from 8.0% to 9.5%[120]

Financial Performance - Third quarter GAAP net income was $4.7 million, or $0.08 per diluted common share, with Distributable Earnings of $5.5 million, or $0.10 per diluted common share[1][2] - The total revenue for the third quarter was $14.1 million, compared to $16.7 million in the same quarter of 2024, reflecting a decrease of approximately 15.5%[14] - Interest income for the third quarter was $23.3 million, down from $39.3 million in the same quarter of 2024[14] - The company reported a net interest margin of $8.5 million for the third quarter, compared to $11.9 million in the same quarter of 2024[14] - Distributable Earnings (Loss) for the three months ended September 30, 2025, was $5,496,000, while for the twelve months it was $(23,471,000)[19] - Net income attributable to common stockholders for the three months ended September 30, 2025, was $4,653,000, compared to $(7,701,000) for the twelve months[19] - Basic Distributable Earnings (Loss) per common share for the three months was $0.10, while it was $(0.43) for the twelve months[19] - Diluted Distributable Earnings (Loss) per common share for the three months was $0.10, while it was $(0.42) for the twelve months[19] Capital and Liquidity - Year-to-date, the company has collected nearly $500 million in repayments, enhancing its liquidity position[2] - As of September 30, 2025, the company had approximately $173 million in available capital[2] - The company closed $271 million in new loan commitments subsequent to the third quarter[1] Assets and Reserves - Total assets as of September 30, 2025, were $1.39 billion, a decrease from $1.75 billion as of December 31, 2024[13] - The current expected credit loss reserve was $115.3 million, down from $136.2 million at the end of 2024[13] Dividends and Distributions - The company declared a fourth quarter 2025 dividend of $0.15 per common share, consistent with the third quarter dividend[6] - The Company is required to distribute substantially all of its taxable income to maintain its REIT status[18] - Distributable Earnings (Loss) is aligned with the calculation of "Core Earnings" used for incentive fee calculations[18] - The Company believes Distributable Earnings (Loss) provides useful information regarding its ability to pay dividends[18] Expenses - Stock-based compensation for the three months was $1,024,000, and $4,133,000 for the twelve months[19] - Depreciation and amortization of real estate owned amounted to $2,009,000 for the three months and $8,747,000 for the twelve months[19] - Provision for (reversal of) current expected credit losses, net, was $(2,190,000) for the three months and $(28,650,000) for the twelve months[19]