Financial Performance - Net sales for the three months ended September 30, 2025, decreased by $8.1 million, or 10.3%, compared to the same period in 2024, totaling $70.7 million[107]. - Net sales for the nine months ended September 30, 2025 decreased by $32.4 million, or 12.9%, compared to the same period in 2024, with Delivery Systems sales down by $35.2 million, or 35.7%[118]. - Consumables net sales increased by $2.8 million, or 1.9%, for the nine months ended September 30, 2025, primarily due to increased placements of Delivery Systems[119]. - The net loss for the nine months ended September 30, 2025, was $1.4 million, an improvement from a loss of $18.8 million in 2024[147]. Sales Breakdown - Delivery Systems net sales fell by $6.8 million, or 24.6%, to $20.8 million, while Consumables net sales decreased by $1.4 million, or 2.6%, to $49.8 million[107]. - The transition to a distributor partner in China impacted Consumables net sales, although excluding this effect, sales increased slightly[108]. Profitability - Gross profit increased by $5.0 million, or 12.3%, to $45.6 million, with a gross margin improvement to 64.6% from 51.6%[109]. - Gross profit for the nine months ended September 30, 2025 was $143.3 million, an increase of $13.4 million, or 10.3%, compared to $130.0 million in 2024, with gross margin improving to 65.6% from 51.8%[120]. Expenses - Selling and marketing expenses decreased by $6.7 million, or 24.2%, to $20.9 million, representing 29.6% of net sales[110]. - Total operating expenses decreased by $26.3 million, or 13.8%, to $164.3 million for the nine months ended September 30, 2025, driven by lower selling and marketing expenses[121]. - Selling and marketing expenses decreased by $21.7 million, or 23.7%, to $70.1 million, representing 32.1% of net sales compared to 36.6% in 2024[121]. - Research and development expenses rose by $0.6 million, or 53.2%, to $1.7 million, accounting for 2.4% of net sales[111]. - Research and development expenses decreased by $1.1 million, or 22.2%, to $3.9 million, representing 1.8% of net sales compared to 2.0% in 2024[122]. - General and administrative expenses decreased by $4.2 million, or 12.5%, to $29.3 million, making up 41.4% of net sales[112]. - General and administrative expenses decreased by $3.4 million, or 3.7%, to $90.3 million, representing 41.3% of net sales compared to 37.4% in 2024[123]. Interest and Debt - Interest expense increased by $3.8 million, or 155.7%, to $6.3 million, primarily due to debt issuance costs related to the 2028 Notes[115]. - Interest expense increased by $5.0 million, or 63.0%, to $13.0 million for the nine months ended September 30, 2025, primarily due to interest and amortization of debt issuance costs related to the 2028 Notes[126]. - The Company exchanged and repurchased $413.2 million of existing notes, resulting in a net gain of $16.6 million[139]. - The 2028 Notes were issued at a weighted-average price of 95%, totaling $250.0 million principal amount[140]. - The Company incurred $11.4 million in debt issuance costs related to the exchange and repurchase of its existing notes, amortized over the term of the 2028 Notes[139]. Cash Flow and Liquidity - As of September 30, 2025, the company had cash, cash equivalents, and restricted cash totaling $219.4 million[130]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $22.3 million, compared to a net cash used of $0.3 million in the same period of 2024[148]. - Net cash used for financing activities was $174.4 million for the nine months ended September 30, 2025, compared to $157.6 million in 2024[150]. - Cash, cash equivalents, and restricted cash at the end of the period were $219.4 million, down from $358.9 million in the previous year[147]. - Cash used for investing activities decreased to $3.8 million in 2025 from $5.9 million in 2024, attributed to lower capital expenditures[149]. Strategic Outlook - The company continues to explore strategies to mitigate cost pressures, including potential price increases and optimizing supplier contracts[101]. - The company remains attentive to macroeconomic conditions that may impact its business and is implementing risk mitigation strategies[102]. - The Company faced macroeconomic challenges, including potential recession and financial market instability, which could adversely impact revenues[144]. - The Company continues to monitor risks that may affect its business, including industry consolidations and economic conditions[145]. - The company plans to evaluate potential acquisitions and may use available cash for such transactions, which could require substantial capital resources[132].

Financial Performance - Gross contract revenue for Q3 2025 was $126.0 million, a year-over-year increase of 10.6% from $113.9 million in Q3 2024[155]. - Net income for Q3 2025 was $6.6 million, compared to $0.8 million in Q3 2024, reflecting significant improvement in profitability[155]. - Adjusted EBITDA for Q3 2025 was $18.3 million, up from $17.0 million in Q3 2024, indicating strong operational performance[155]. - For the nine months ended September 30, 2025, gross contract revenue reached $361.1 million, representing a 15.3% increase from $313.3 million in the same period of 2024[156]. - Net income increased by $13.8 million to $10.9 million for the nine months ended September 30, 2025, compared to a net loss of $2.9 million for the same period in 2024[222]. Revenue Breakdown - Net service billing for Q3 2025 was $112.1 million, compared to $101.4 million in Q3 2024, demonstrating growth in service delivery[180]. - Revenue from transportation increased by $4.4 million or 20.2%, driven by new contract awards and acquired transportation backlog[183][184]. - Revenue from power and utilities increased by $3.9 million or 16.6%, primarily due to acquisitions and expansion of utility projects[185]. - Revenue from natural resources and imaging decreased by $0.5 million or 3.3%, with 48.9% of revenue derived from imaging and mapping activities[186]. - Revenue from the transportation sector increased by $14.5 million or 24.1% for the nine months ended September 30, 2025, attributed to new contract awards and acquired backlog[207]. - Revenue from power and utilities increased by $13.0 million or 19.6% for the nine months ended September 30, 2025, driven by acquisitions and expansion of utility projects[208]. - Revenue from natural resources and imaging markets increased by $10.0 million or 32.1% for the nine months ended September 30, 2025, primarily due to the acquisition of Surdex Corporation[210]. Cost and Expenses - Total contract costs increased by $4.8 million or 8.8% to $59.1 million, representing 46.9% of total contract revenue[188]. - Direct payroll costs increased by $3.5 million or 8.4% to $45.2 million, accounting for 76.5% of total contract costs[189]. - Selling, general and administrative expenses increased by $3.3 million or 6.4% to $55.2 million, driven by increased headcount and overhead costs[194]. - Total contract costs increased by $19.7 million or 13.1% to $170.5 million for the nine months ended September 30, 2025, representing 47.2% of total contract revenue[212]. - Direct payroll costs increased by $11.0 million or 9.3% to $129.5 million for the nine months ended September 30, 2025, accounting for 76.0% of total contract costs[213]. Profitability Metrics - Adjusted EBITDA margin for Q3 2025 was 16.3%, slightly down from 16.7% in Q3 2024, reflecting stable operational efficiency[180]. - The company’s net margin improved to 5.3% in Q3 2025, compared to 0.7% in Q3 2024, indicating better cost management[180]. - Adjusted EBITDA increased by $1.3 million or 7.8% to $18.3 million for the three months ended September 30, 2025, compared to $17.0 million for the same period in 2024[201]. - Adjusted EBITDA margin decreased slightly to 16.3% for the three months ended September 30, 2025, from 16.7% in the same period of 2024[202]. - Adjusted EBITDA rose by $10.5 million or 24.7% to $53.0 million for the nine months ended September 30, 2025, compared to $42.5 million for the same period in 2024[224]. Cash Flow and Financing - Cash and cash equivalents at the end of the period increased by $4.6 million to $16.2 million as of September 30, 2025, compared to $11.7 million at the end of 2024[231]. - Net cash provided by operating activities was $26.5 million for the nine months ended September 30, 2025, compared to $12.4 million for the same period in 2024[232]. - Net cash used in investing activities decreased by $22.2 million to $1.4 million for the nine months ended September 30, 2025, compared to $23.6 million for the same period in 2024[233]. - Net cash used in financing activities was $15.5 million for the nine months ended September 30, 2025, compared to $2.2 million provided by financing activities for the same period in 2024[234]. - The company maintained a $140.0 million Revolving Credit Facility as of September 30, 2025, with a balance of $57.0 million[235]. Strategic Initiatives - The company completed three acquisitions post-September 30, 2025, with total consideration of $7.4 million, enhancing its market position[157]. - The company is actively pursuing acquisitions as part of its strategic growth initiative, assessing multiple opportunities at various stages of due diligence[230]. - The backlog increased by $48.7 million or 12.2% to $447.7 million during the nine months ended September 30, 2025, compared to $399.0 million at December 31, 2024[226]. Market Risks and Challenges - The company faces market risks related to customer demand fluctuations and competitive pressures in the industry[246]. - The ability to retain key professionals and hire additional qualified personnel is critical for the company's growth strategy[246]. - The company is dependent on a limited number of customers, which poses a risk to revenue stability[246]. - The company must successfully execute its acquisitions strategy, including the integration of new acquisitions into operations[246]. - Changes in general economic conditions, such as inflation and interest rates, could materially impact the company's performance[246].

Customer Base and Services - The company serves approximately 4.4 million residential and business customers across 21 states, with a total of 9.9 million passings as of September 30, 2025[142]. - For the nine months ended September 30, 2025, residential broadband, video, telephony, and mobile services accounted for approximately 41%, 31%, 3%, and 2% of consolidated revenue, respectively[144]. - The company derives 17% of its consolidated revenue from business services, including broadband, telephony, networking, video, and mobile services[146]. - Total customer relationships as of September 30, 2025, were 4,400.5 thousand, down from 4,462.2 thousand as of June 30, 2025[158]. - Total mobile lines as of September 30, 2025, increased to 584.4 thousand from 546.4 thousand as of June 30, 2025[158]. - Penetration of total passings for residential customers was 44.3% as of September 30, 2025, down from 45.1% as of June 30, 2025[158]. Financial Performance - Total revenue for the three months ended September 30, 2025, was $2,108.1 million, a decrease of 5.4% compared to $2,227.7 million in the same period of 2024[156]. - Net loss attributable to Altice USA, Inc. stockholders for the three months ended September 30, 2025, was $1,625.9 million, compared to a net loss of $42.97 million in the same period of 2024[156]. - Adjusted EBITDA for the three months ended September 30, 2025, was $830.7 million, a decrease of 3.6% from $862.0 million in the same period of 2024[157]. - Total revenue for the nine months ended September 30, 2025, was $6,407.6 million, a decrease of 4.6% from $6,719.4 million in the same period of 2024[156]. - Operating income for the three months ended September 30, 2025, was $(1,164.8) million, compared to an operating income of $444.6 million in the same period of 2024[156]. - Adjusted EBITDA decreased by $31,319 (4%) to $830,657 for Q3 2025, and by $142,225 (6%) to $2,433,483 for the nine months ended September 30, 2025, compared to the same periods in 2024[182]. Revenue Breakdown - Broadband revenue decreased by $39,968 (4%) to $873,449 for Q3 2025, and by $87,251 (3%) to $2,658,149 for the nine months ended September 30, 2025, compared to the same periods in 2024[159]. - Video revenue decreased by $69,910 (10%) to $645,207 for Q3 2025, and by $238,841 (11%) to $1,971,315 for the nine months ended September 30, 2025, compared to the same periods in 2024[160]. - Telephony revenue decreased by $8,086 (12%) to $61,791 for Q3 2025, and by $19,709 (9%) to $192,836 for the nine months ended September 30, 2025, compared to the same periods in 2024[161]. - Mobile service revenue increased by $11,714 (38%) to $42,277 for Q3 2025, and by $33,662 (41%) to $116,597 for the nine months ended September 30, 2025, compared to the same periods in 2024[162]. - Business services and wholesale revenue decreased by $4,469 (1%) to $361,886 for Q3 2025, and by $13,287 (1%) to $1,087,219 for the nine months ended September 30, 2025, compared to the same periods in 2024[165]. - News and advertising revenue decreased by $11,819 (10%) to $105,863 for Q3 2025, and remained relatively stable for the nine months ended September 30, 2025, at $327,044[167]. - Other revenue increased by $2,948 (20%) to $17,637 for Q3 2025, and by $15,274 (39%) to $54,435 for the nine months ended September 30, 2025, compared to the same periods in 2024[168]. Cash Flow and Capital Expenditures - Free Cash Flow (Deficit) for the three months ended September 30, 2025, was $(178.1) million, compared to a positive Free Cash Flow of $76.9 million in the same period of 2024[157]. - Free Cash Flow (Deficit) was $(178,072) and $(318,267) for the three and nine months ended September 30, 2025, respectively, a decrease of $254,937 and $417,771 compared to the same periods in 2024[186]. - Net cash flows from operating activities were $148,108 for the three months ended September 30, 2025, compared to $333,595 in the same period of 2024[196]. - Capital expenditures for the three months ended September 30, 2025, were $325,520, compared to $359,159 in the same period of 2024[196]. - Net cash provided by operating activities for CSC Holdings was $750,819 for the nine months ended September 30, 2025, down from $1,040,051 in the same period of 2024[238]. - Capital expenditures on a cash basis for the nine months ended September 30, 2025, totaled $1,065,163, compared to $1,042,975 in 2024[234]. Debt and Financial Obligations - Total debt outstanding as of September 30, 2025, was $26,237,618, which includes credit facility debt of $7,549,952 and senior guaranteed notes of $10,679,227[205]. - Interest expense for the nine months ended September 30, 2025, was $1,346,621, which includes $1,252,279 from credit facility debt and senior notes[205]. - The company expects to utilize Free Cash Flow and revolving credit facilities to manage debt obligations and capital expenditures in the upcoming year[201]. - Total amounts payable related to outstanding obligations, including interest, are projected to be $32,310,872, with significant payments due in 2026 and 2027[207]. - Future refinancing transactions will depend on market conditions, which may impact the company's ability to manage its debt obligations[201]. - The net leverage ratio for CSC Holdings is calculated as net debt to L2QA EBITDA, indicating a focus on managing leverage effectively[200]. Operational Challenges and Outlook - The company faces competition from various broadband and telephony providers, impacting customer demand and service selection[148]. - Future performance is influenced by economic conditions, competition, and the ability to manage operations effectively[143]. - The company emphasizes the importance of managing capital expenditures to avoid delays and disruptions in network and service development[150]. - The ongoing FTTH network build aims to deliver multi-gig broadband speeds to meet growing data needs, alongside investments in HFC network upgrades[150]. Miscellaneous - The company recorded a gain of $55,114 from the sale of certain tower assets for $59,908 in July 2025[231]. - Commitments and contingencies decreased to approximately $4,300,000 as of September 30, 2025, down from approximately $4,900,000 as of December 31, 2024[244]. - The company reported no changes in internal control over financial reporting that materially affected its financial reporting during the nine months ended September 30, 2025[247]. - The evaluation of disclosure controls and procedures concluded that they were effective as of September 30, 2025[246].

Revenue Performance - For the three months ended September 30, 2025, total revenue was $8,497,000, a decrease of 9.7% from $9,416,000 for the same period in 2024[107]. - Total revenue for the three months ended September 30, 2025 was approximately $8.5 million, a decrease of approximately 9.8% from $9.4 million for the same period in 2024[113]. - Total revenue for the nine months ended September 30, 2025 was approximately $23.6 million, a decrease of approximately 11.0% from $26.5 million for the same period in 2024[132]. Franchise Royalties - Franchise royalties accounted for 95.4% of total revenue in Q3 2025, totaling $8,110,000, compared to 95.5% and $8,988,000 in Q3 2024[107]. - Franchise royalties for the three months ended September 30, 2025 were approximately $8.1 million, a decrease of approximately 9.8% from $9.0 million for the same period in 2024[114]. - Franchise royalties for the nine months ended September 30, 2025 were approximately $22.4 million, a decrease of approximately 10.7% from $25.0 million for the same period in 2024[133]. Net Income and EBITDA - Net income for the three months ended September 30, 2025, was $2,304,000, compared to a net loss of $2,207,000 in the same period of 2024[107]. - Adjusted EBITDA for Q3 2025 was $4,651,000, representing 54.7% of total revenue, compared to $4,926,000 or 52.3% in Q3 2024[107]. - Adjusted EBITDA for the three months ended September 30, 2025 was $4.7 million, compared to $4.9 million for the same period in 2024[111]. Operating Expenses - Selling, general, and administrative expenses for Q3 2025 were $5,070,000, representing 59.7% of total revenue, compared to 57.1% in Q3 2024[107]. - Total operating expenses for the three months ended September 30, 2025 were approximately $6.1 million, a significant decrease from $12.1 million for the same period in 2024[118]. - Total operating expenses for the nine months ended September 30, 2025 were approximately $18.6 million, a decrease of $5.8 million from $24.4 million in the same period of 2024[136]. Impairment Charges - The company reported a goodwill and intangible asset impairment charge of $230,000 for Q3 2025, significantly lower than $6,035,000 in Q3 2024[107]. - The company recorded a goodwill and intangible asset impairment charge of $330 thousand for the three months ended September 30, 2025, compared to $6.0 million for the same period in 2024[111]. Employment and Operations - The company employed approximately 65,000 temporary employees annually across various industries, including construction, healthcare, and logistics[103]. - The company operates 399 franchisee-owned offices and 1 company-owned office in 43 states and 13 countries as of September 30, 2025[103]. - The total number of offices decreased from 425 at the end of 2024 to 400 by September 30, 2025, reflecting a net closure of 25 offices[171]. Strategic Initiatives - Management is pursuing both organic growth and acquisition strategies, focusing on expanding existing client business and identifying strategic acquisitions[104]. - The company anticipates future growth opportunities through national and global account opportunities for franchisees and new franchise offerings[104]. Financial Metrics - Interest and other financing expense decreased from $268 thousand for the three months ended September 30, 2024 to $63 thousand for the same period in 2025[126]. - Cash provided by continuing operations was approximately $5.5 million for the nine months ended September 30, 2025, compared to $3.5 million in the same period of 2024[155]. - Income tax expense was approximately $362 thousand for the nine months ended September 30, 2025, with an effective tax rate of 6.9%[145]. Market Conditions - The ongoing geopolitical conflicts and economic sanctions have led to rising energy prices and inflationary pressures, potentially impacting demand for labor services[165]. - The company does not expect the recent changes in federal tax law to have a material impact on its financial position or results of operations[163]. - The company is currently evaluating the potential effects of U.S. government policy shifts on its operations and market conditions[164].

Business Model and Revenue Generation - Skillz's platform enables game developers to monetize their content through multi-player competition, allowing developers to earn revenue by hosting skill-based competitions where players pay entry fees, with Skillz taking a percentage of the pool[34] - Aarki, Skillz's AI advertising technology, manages millions of mobile ad requests per second from over 10 billion devices, driving revenue growth for mobile app developers[37] - In February 2025, Skillz launched the $75 million Skillz Developer Program to provide working capital and operational support to approximately 25 games over the next three years[58] - The company enables cash prizes in 45 states and the District of Columbia, excluding Arkansas, Connecticut, Delaware, Louisiana, and South Dakota[81] - Approximately 93% of Ticketz were issued from customer participation in paid tournaments for the year ending December 31, 2024, compared to 96% for the year ending December 31, 2023[70] - For the year ended December 31, 2024, the top games Solitaire Cube and 21 Blitz accounted for 59% of revenue, with Tether contributing 45% and Big Run 26%[108] Technology and Platform Development - Skillz's proprietary platform ensures fair player matching, which is critical for maintaining trust and engagement in skill-based gaming[26] - Skillz's technology capabilities include anti-cheat and anti-fraud systems, which are essential for fostering a healthy competitive ecosystem[54] - The introduction of standardized game development platforms has resulted in a flood of game content, making it challenging for developers to monetize effectively[56] - The company actively monitors player metrics such as daily active users, crash rates, app store ratings, and support ticket issues to ensure game quality[59] - The company relies on third-party developers for game updates, and any failure to provide timely updates could negatively impact financial results[106] Financial Performance and Challenges - The company has 91 patents granted and 86 patents pending worldwide as of December 31, 2024[79] - The company has experienced net losses in each period since inception, highlighting the risks associated with its growth strategy in a competitive industry[190] - The company expects operating margins to face downward pressure due to increased competition and rising user acquisition costs[191] - As of December 31, 2024, the company had an accumulated deficit of $1,021.3 million, indicating ongoing financial challenges since inception[190] - The company has experienced interruptions in service in the past, which could impact user engagement and retention[152] Regulatory and Compliance Issues - The company has developed internal compliance programs to adhere to legal and regulatory requirements for skill-based gaming and data privacy[84] - The company is subject to indirect taxation and reporting in approximately 218 domestic and international jurisdictions[147] - Changes in tax laws or tax rulings could materially affect the company's effective tax rates and financial position[147] - Compliance with evolving privacy laws such as GDPR and CCPA has required significant operational resources and expenses[177] - The company is subject to potential fines of up to 4% of global annual revenue or €20 million for violations of GDPR[175] Market and Competitive Landscape - The global video game market size was estimated at $221.2 billion in 2024, with a projected compound annual growth rate (CAGR) of 6.5% from 2025 to 2033[55] - Competition in the entertainment industry is intense, with the company facing challenges from established and emerging competitors, which could affect user retention and market share[99] - The company faces increasing challenges and costs in acquiring players due to the competitive nature of the mobile gaming industry[117] - The company relies on the continued growth of the mobile gaming market for future success, and any decline in mobile device popularity could harm revenue[129] Risks and Legal Matters - The company is involved in ongoing litigation regarding bot misuse, which could result in reputational harm and additional legal costs[101] - Material weaknesses in internal control over financial reporting were identified as of December 31, 2023, and December 31, 2024, potentially impacting timely and accurate financial reporting[95] - The company faces potential litigation risks related to the use of third-party open source software, which could disrupt its business operations[157] - The company may incur significant costs or downtime if agreements with third-party service providers are terminated[155] Strategic Initiatives and Future Outlook - The company plans to pursue acquisitions and strategic investments, but miscalculations in value or integration challenges could materially harm its business[170] - The company’s growth strategy includes developing localized offerings for international markets, which requires significant resources and management attention[167] - The company has significant opportunities to extend marketing channels to offline media and engage in brand marketing[69] - The company expects a positive return on investment from user acquisition spending, but incorrect assumptions about user spending behavior could negatively impact operating results[119] Corporate Governance and Shareholder Matters - The Company authorized a share repurchase program with an aggregate purchase price not to exceed $65.0 million, effective for one year from August 18, 2023[210] - The average closing price of the Company's stock must remain above $1.00 over a 30-day period to comply with NYSE listing standards, or it risks delisting[211] - As of December 31, 2024, Mr. Paradise controlled 84% of the voting power of the Company's outstanding capital stock, classifying it as a "controlled company" under NYSE rules[216] - The dual class structure of the Company's common stock concentrates significant voting power with the CEO, limiting other stockholders' influence on corporate decisions[218]

Production and Revenue - Total MBoe production for Q3 2025 was 1,745 MBoe, a 11.6% increase from 1,563 MBoe in Q3 2024[84] - Oil production for Q3 2025 was 344 MBbls, up 49% from 231 MBbls in Q3 2024[89] - Average daily total volumes increased to 19.0 MBoe/d in Q3 2025, compared to 17.0 MBoe/d in Q3 2024[89] - Oil revenues increased by $5.54 million to $22.42 million for the three months ended September 30, 2025, compared to $16.87 million in 2024[88] - Natural gas revenues rose by $4.17 million to $8.52 million for the three months ended September 30, 2025, compared to $4.35 million in 2024[88] - Total revenues for the three months ended September 30, 2025, were $39.82 million, an increase of 32.4% compared to $30.06 million in the same period of 2024[88] - Oil revenues for Q3 2025 were $39,822,000, up from $30,057,000 in Q3 2024, reflecting a 32.5% increase[91] Expenses and Financial Performance - Total operating expenses for Q3 2025 were $24,104,000, an increase of 15.5% from $20,867,000 in Q3 2024[92] - Lease operating expenses for Q3 2025 were $10.91 million, an increase from $9.10 million in Q3 2024[92] - General and administrative expenses increased by $0.43 million to $2.74 million for the three months ended September 30, 2025, compared to $2.30 million in 2024[99] - Lease operating expenses per Boe increased to $6.25 in Q3 2025 from $5.82 in Q3 2024[92] - General and administrative expenses rose to $2,737,000 in Q3 2025, up from $2,304,000 in Q3 2024, a 18.8% increase[99] Cash Flow and Capital Expenditures - Cash flows from operating activities increased to $68.45 million for the nine months ended September 30, 2025, up from $47.94 million in 2024[107] - Capital expenditures for the nine months ended September 30, 2025, totaled $50.64 million, significantly higher than $13.46 million in 2024[109] - Total capital expenditures, including acquisitions, amounted to $58.43 million for the nine months ended September 30, 2025, down from $139.41 million in 2024[109] - Cash flows used in investing activities decreased significantly to $(46.13) million for the nine months ended September 30, 2025, compared to $(138.66) million in 2024[107] - The company reported a net increase in cash and cash equivalents of $3.08 million for the nine months ended September 30, 2025, contrasting with a net decrease of $(159.86) million in 2024[107] Debt and Working Capital - The company had no outstanding term or revolving debt obligations as of September 30, 2025[103] - Working capital increased to $73.8 million at September 30, 2025, compared to $67.1 million at December 31, 2024[105] - Cash and cash equivalents as of September 30, 2025, totaled $102.6 million, with no outstanding debt obligations[103] Strategic Focus and Future Outlook - The company is focused on one-rig development in the Cherokee Shale Play and evaluating merger and acquisition opportunities[85] - Total leasehold position is approximately 95% held by production, supporting future development[85] - The company plans to adjust capital activity based on commodity prices and project results to optimize returns[85] - The estimated SEC prices for the fourth quarter of 2025 are projected to be $65.45 per barrel of oil and $3.33 per MMBtu of natural gas[97] Shareholder Returns - The company paid total cash dividends of $165.9 million since 2023, equating to $4.48 per share in total dividends, which includes $3.50 per share in special dividends and $0.98 per share in quarterly dividends[110]

Financial Performance - Solventum reported total company net sales of $2,096 million for the three months ended September 30, 2025, representing a 0.7% increase compared to $2,082 million in the same period of 2024[137]. - For the nine months ended September 30, 2025, total company net sales were $6,327 million, reflecting a 2.4% growth from $6,179 million in 2024[139]. - Operating income for the total company surged to $1,690 million in Q3 2025, a significant increase of 514.5% compared to $275 million in Q3 2024[140]. - The Advanced Wound Care segment achieved a 3.5% increase in sales for Q3 2025, totaling $485 million, while the Dental Solutions segment saw an 8.4% increase, reaching $340 million[137]. - The MedSurg segment reported a decline in operating income of 16.5% for Q3 2025, totaling $203 million, while the Health Information Systems segment experienced a 27.4% increase, reaching $134 million[140]. - Solventum's organic sales growth for the three months ended September 30, 2025, was 2.7%, with notable contributions from MedSurg and Health Information Systems[137]. - In the U.S. market, organic sales growth was 3.4% for Q3 2025, while international organic sales growth was 1.7%[143]. Cost and Expenses - Cost of product as a percentage of sales increased to 53.1% in Q3 2025 from 49.3% in Q3 2024, driven by higher sourcing costs and tariffs[149]. - Cost of product as a percent of sales increased in the first nine months of 2025 compared to the same period in 2024, driven by higher sourcing costs from tariffs[151]. - Cost of software and rentals as a percent of sales decreased in the third quarter of 2025 due to lower external license fees and a favorable product mix[153]. - Selling, General and Administrative (SG&A) expenses increased to 37.2% of total net sales in Q3 2025, up from 33.7% in Q3 2024, primarily due to costs associated with separating operations from 3M[155][156]. - Research and Development (R&D) expenses decreased to 8.7% of total net sales in Q3 2025, down from 9.1% in Q3 2024, attributed to lower costs from the sale of the Purification and Filtration business[158]. Business Transactions - The company completed the sale of its Purification and Filtration business for approximately $4 billion on September 1, 2025[134]. - The company reported a net gain of $1.5 billion from the sale of the Purification and Filtration business in Q3 2025[159]. - The company repaid $1.9 billion of senior notes and $770 million of outstanding principal under the senior term loan credit facility following the sale of the Purification and Filtration business[199]. Cash Flow and Financial Position - Cash and cash equivalents increased to $1,642 million as of September 30, 2025, up from $762 million at December 31, 2024, primarily due to proceeds from the sale of the Purification and Filtration business[192]. - Cash flows from operating activities were $274 million for the first nine months of 2025, a decrease from $966 million in the same period of 2024[195]. - The company entered into a commercial paper program allowing it to issue up to $2.0 billion in short-term notes[191]. - The increase in investing activities in 2025 was related to proceeds from the sale of the Purification and Filtration business[197]. Tax and Interest - Interest expense, net decreased to $89 million in Q3 2025 from $107 million in Q3 2024, due to lower debt outstanding[160]. - Effective tax rate for Q3 2025 was 16.4%, significantly lower than 26.9% in Q3 2024[163]. Segment Performance - Net sales for the MedSurg segment increased by 2.1% in Q3 2025, with a decrease in operating income margin due to higher product costs from tariffs[171]. - Dental Solutions segment reported an 8.4% increase in sales in Q3 2025, with operating income margin benefiting from higher sales volume growth[175]. - Health Information Systems segment sales increased by 5.9% in Q3 2025, with improved operating income margin driven by sales mix and lower external license fees[181]. - Net sales in the Purification and Filtration segment decreased by 28.7% in Q3 2025, with reported growth of -6.6% for the first nine months of 2025[186][187]. - Organic growth for the Purification and Filtration segment was 6.4% in Q3 2025, driven by the adoption of Solventum™360 Encompass and consulting product milestones[184]. - Business segment operating income margin increased to 20.1% in Q3 2025, up from 10.6% in Q3 2024, reflecting volume growth and a favorable sales mix[186]. Currency Impact - Foreign currency translation positively impacted sales by 3.4% in Q3 2025[194]. - The company had approximately $84 million in bank guarantees and surety bonds outstanding as of September 30, 2025[190].

Financial Performance - Net sales for the three months ended September 30, 2025, were $250.9 million, a decrease of 14.3% compared to $292.8 million for the same period in 2024[111] - Net income for the three months ended September 30, 2025, was $0.9 million, down 79.2% from $4.6 million in the same period in 2024[121] - Net sales for the nine months ended September 30, 2025, were $635.1 million, a decrease of 16.0% from $756.1 million in the same period of 2024[123] - Net loss for the nine months ended September 30, 2025, was $68.1 million, compared to a net loss of $13.7 million in the same period of 2024[133] - Net income attributable to Funko, Inc. for Q3 2025 was $901,000, a decrease from $4.33 million in Q3 2024, while the nine-month net loss was $67.18 million compared to a loss of $13.22 million in the same period last year[139] - Adjusted net income for Q3 2025 was $3.22 million, down from $7.95 million in Q3 2024, with a nine-month adjusted net loss of $41.30 million compared to a profit of $4.28 million in the prior year[139] - EBITDA for Q3 2025 was $22.32 million, down from $26.15 million in Q3 2024, while the nine-month EBITDA was a loss of $6.89 million compared to $51.98 million in the same period last year[139] Sales Breakdown - Net sales in the United States decreased by 20.1% to $155.4 million for the three months ended September 30, 2025, compared to $194.4 million in 2024[112] - Net sales in Europe decreased by 0.4% to $74.2 million for the three months ended September 30, 2025, compared to $74.5 million in 2024[112] - Net sales of the Core Collectible branded category decreased by 12.0% to $200.4 million for the three months ended September 30, 2025, compared to $227.8 million in 2024[113] - Other branded category net sales decreased by 67.0% to $5.8 million for the three months ended September 30, 2025, compared to $17.6 million in 2024, primarily due to rationalizing underperforming items[113] - Net sales in the United States decreased by 22.7% to $389.6 million, while net sales in Europe increased by 1.6% to $192.1 million[124] - The Core Collectible branded category saw a 12.1% decrease in net sales to $502.4 million, and the Loungefly category decreased by 13.6% to $111.9 million[125] Cost and Expenses - Gross margin for the three months ended September 30, 2025, was 40.2%, a decrease from 40.9% in the same period in 2024, primarily due to increased shipping, freight, and duty costs[115] - Cost of sales for the three months ended September 30, 2025, was $150.2 million, a decrease of 13.2% from $173.0 million in the same period in 2024[114] - Cost of sales (exclusive of depreciation and amortization) was $395.5 million, down 11.3% from $446.0 million in the prior year[126] - Gross margin (exclusive of depreciation and amortization) decreased to 37.7% from 41.0% due to increased shipping, freight, and duty costs[127] - Selling, general, and administrative expenses decreased by 13.9% to $79.8 million for the three months ended September 30, 2025, compared to $92.7 million in 2024[116] - Selling, general, and administrative expenses were $246.9 million, a decrease of 3.6% from $256.2 million in the previous year[128] Cash Flow and Liquidity - Net cash used in operating activities for the nine months ended September 30, 2025, was $33.21 million, a significant decline from $63.74 million provided in the same period of 2024[152] - Net cash used in investing activities was $23.0 million, primarily for tooling and molds, compared to $13.4 million in the same period of 2024[154] - Net cash provided by financing activities was $57.8 million, mainly from net borrowings of $75.0 million on the Revolving Line of Credit Facility, offset by $17.3 million in payments on loans[156] - As of September 30, 2025, total indebtedness included $99.2 million under the Term Loan Facility and $135.0 million under the Revolving Credit Facility[157] - The company had $39.2 million in cash and cash equivalents and $(157.5) million in working capital as of September 30, 2025, compared to $34.7 million and $(18.7) million respectively at the end of 2024[166] - The company expects significant future liquidity needs for tax distributions, interest payments, and capital expenditures, including a new ERP system[170] Financial Covenants and Compliance - The company anticipates potential non-compliance with financial covenants under its Credit Agreement, raising substantial doubt about its ability to continue as a going concern for the next twelve months[142] - The Credit Agreement includes a term loan facility of $180 million and a revolving credit facility of $100 million, with maturity in September 2026[141] - The company anticipates non-compliance with the maximum Net Leverage Ratio and minimum Fixed Charge Coverage Ratio covenants by December 31, 2025[161] Market Risks and Challenges - The company has experienced adverse impacts from the challenging retail environment and announced tariffs, which are expected to continue affecting performance[144] - The company is exposed to market risks from changes in interest rates, foreign currency, and inflation[177] - There have been no material changes in market risk compared to the previous disclosure in the 2024 10-K[177] Strategic Plans - Management's liquidity plan includes monitoring pricing strategies, reducing overhead costs, and potentially shifting manufacturing out of China to mitigate increasing costs[148] - The company plans to raise additional cash through equity or debt issuance and is considering strategic alternatives, including a potential sale of the company[149] - The Form S-3 registration statement allows the company to offer up to $100.0 million of various securities, effective until August 15, 2028[163] Seasonal Trends - Over 50% of net sales historically occur in the third and fourth quarters, indicating a seasonal trend in sales[171] Accounting Policies - Critical accounting policies include revenue recognition, inventory, and goodwill assessments, which could materially affect financial results[173]

Financial Performance - Coherus Oncology reported net revenue of $11.571 million for the three months ended September 30, 2025, a 91.5% increase from $6.052 million in the same period of 2024[13]. - The company incurred a net loss of $35.531 million for the three months ended September 30, 2025, compared to a net loss of $10.751 million in the same period of 2024[15]. - Coherus Oncology reported a net income of $205.67 million for the nine months ended September 30, 2025, compared to $79.20 million for the same period in 2024, reflecting a significant increase[20]. - The company experienced a net cash used in operating activities of $118.80 million for the nine months ended September 30, 2025, compared to $49.05 million for the same period in 2024[20]. - The net loss from continuing operations for the three months ended September 30, 2025, was $44.517 million, compared to a loss of $47.599 million in 2024[107]. Revenue and Sales - The company anticipates continued growth in product sales and is focused on maintaining regulatory approvals for its product candidates[7]. - LOQTORZI generated net product revenue of $11.169 million for the three months ended September 30, 2025, compared to $5.832 million for the same period in 2024[39]. - For the nine months ended September 30, 2025, total net revenue reached $29.424 million, compared to $18.656 million in 2024, indicating a 58% increase[39]. - The company launched LOQTORZI in December 2023, contributing to the overall revenue growth[39]. - The company reported total net revenue from discontinued operations of $10,663,000 for the three months ended September 30, 2025, a decrease from $64,722,000 in the same period of 2024[66]. Assets and Liabilities - Total current assets rose to $460.955 million as of September 30, 2025, compared to $341.583 million as of December 31, 2024, marking a 35% increase[12]. - The company reported total liabilities of $428.745 million as of September 30, 2025, down from $580.523 million as of December 31, 2024, indicating a 26.1% decrease[12]. - Coherus Oncology's total stockholders' equity improved to $87.774 million as of September 30, 2025, compared to a deficit of $131.990 million as of December 31, 2024[12]. - The total balance of chargebacks and discounts for prompt payment as of September 30, 2025, was $69.826 million, down from $275.645 million at December 31, 2024[42]. - Total accrued and other current liabilities decreased significantly to $13.1 million as of September 30, 2025, from $60.3 million as of December 31, 2024, representing a reduction of approximately 78.2%[58]. Research and Development - Research and development expenses increased to $27.252 million for the three months ended September 30, 2025, up from $22.052 million in the same period of 2024, reflecting a 23.5% rise[13]. - The company recognized a reduction in research and development expenses of $4.8 million during the nine months ended September 30, 2024, related to obligations to Junshi Biosciences[74]. - Coherus has a pipeline that includes two mid-stage clinical candidates targeting various cancers, aiming to grow sales of its PD-1 inhibitor, LOQTORZI[21]. Divestitures and Transactions - The Company divested the UDENYCA franchise to Intas Pharmaceuticals for an upfront cash consideration of $483.4 million, including $118.4 million for product inventory[22]. - The company recognized a net gain of $338.7 million from the sale of the UDENYCA business, which included cash receipts less net assets transferred and transaction expenses[60]. - The company is eligible for two additional earnout payments of $37.5 million each based on UDENYCA's net sales performance over specified periods[61]. - The company completed the divestiture of the UDENYCA business for $483.4 million, including $118.4 million for product inventory[60]. Stock and Shares - The weighted-average number of shares used in computing net loss per share was 116,229,170 for the three months ended September 30, 2025[13]. - Coherus Oncology's total common stock shares outstanding increased to 116,236,018 as of September 30, 2025, from 115,907,216 as of March 31, 2025[17]. - The company issued 287,473 shares under the employee stock purchase plan (ESPP), generating $188,000 in additional paid-in capital[17]. - The company had approximately 30.9 million outstanding dilutive potential shares excluded from the calculation of diluted net income (loss) per share for the three months ended September 30, 2025[107]. Cash and Cash Equivalents - Coherus Oncology's cash and cash equivalents decreased to $103.352 million as of September 30, 2025, from $125.987 million as of December 31, 2024, a decline of 17.9%[12]. - As of September 30, 2025, cash equivalents totaled $103.2 million, while marketable debt securities amounted to $152.4 million, leading to a total fair value of financial assets of $191.5 million[48]. - The company anticipates that its available cash, cash equivalents, and marketable securities will be sufficient to fund planned expenditures and meet obligations in the future[7]. Debt and Interest - The company entered into a senior secured term loan facility for up to $38.7 million, with net proceeds of $37.5 million used to repay the 2027 Term Loans[78]. - Interest expense for the 2029 Term Loan was $1.3 million for the three months ended September 30, 2025, and $3.9 million for the nine months ended September 30, 2025[80]. - The 2029 Term Loan matures on May 8, 2029, with an interest rate of 8.0% plus a three-month SOFR rate, and the company was in full compliance with the loan agreement as of September 30, 2025[79]. - The company recognized a loss on debt extinguishment of $10.3 million during the nine months ended September 30, 2025[70].

Sales Performance - Consolidated net sales for the three months ended September 30, 2025, were $128.3 million, representing a 12.0% increase compared to $114.6 million in the same period of 2024[106] - For the nine months ended September 30, 2025, consolidated net sales were $356.3 million, an increase of 6.0% from $336.2 million in 2024[106] - Net sales in Asia for the three months ended September 30, 2025, were $64.7 million, a 17.1% increase from $55.3 million in 2024[107] - In Europe, net sales for the three months ended September 30, 2025, were $22.1 million, up 12.7% from $19.6 million in 2024[112] - North America net sales for the three months ended September 30, 2025, were $36.2 million, reflecting a 7.7% increase from $33.6 million in 2024[113] - Latin America and Other markets saw net sales decrease to $5.3 million for the three months ended September 30, 2025, down 13.1% from $6.1 million in 2024[115] Cost and Expenses - Cost of sales as a percentage of net sales decreased to 26.7% for the three months ended September 30, 2025, compared to 28.7% in 2024[117] - Volume incentives as a percentage of net sales were 30.7% for the three months ended September 30, 2025, down from 31.0% in 2024[118] - Selling, general and administrative expenses increased to $45.7 million for the three months ended September 30, 2025, compared to $40.9 million in 2024[120] Income and Taxes - Other income, net for the three and nine months ended September 30, 2025, was $0.7 million and $4.9 million, respectively, compared to $2.6 million and $1.4 million during the same periods in 2024[121] - The provision for income taxes for the three months ended September 30, 2025, was 42.8%, compared to 41.2% for the same period in 2024, while for the nine months, it was 34.5% in 2025 versus 49.2% in 2024[122] - The effective tax rate difference for the nine months ended September 30, 2025, was primarily due to a decrease in foreign losses year over year and favorable adjustments to valuation allowances[126] Cash Flow and Capital - Operating activities provided cash of $25.4 million for the nine months ended September 30, 2025, compared to $13.1 million in the same period in 2024, primarily due to improved net income[137] - Investing activities used $4.1 million for the nine months ended September 30, 2025, compared to $8.8 million for the same period in 2024, related to capital expenditures[138] - Financing activities used $15.2 million for the nine months ended September 30, 2025, compared to $9.3 million for the same period in 2024[139] - As of September 30, 2025, working capital was $102.4 million, an increase from $94.9 million as of December 31, 2024[135] - The company had $95.6 million in cash as of September 30, 2025, with $89.8 million held in foreign markets[135] - The company maintains a revolving credit agreement with no outstanding balances as of September 30, 2025[141] Share Repurchase - The company repurchased 1,129,000 shares of common stock for $14.4 million during the nine months ended September 30, 2025, with a remaining balance of $19.3 million available for repurchases[140] Future Outlook - The company expects continued growth in international operations, significantly impacting total net sales[105]