Financial Performance - Net sales in Q3 2025 increased by 9% to $1.472 billion compared to Q3 2024, with a 34% increase in international channel sales[106] - For the third quarter of 2025, net sales increased by $125 million, or 9%, to $1.472 billion compared to $1.347 billion in the third quarter of 2024[128] - Year-to-date 2025 net sales increased by $160 million, or 4%, to $4.284 billion compared to $4.124 billion in year-to-date 2024[144] - North America year-to-date net sales increased by $58 million, or 3%, to $2.325 billion, despite a decrease in traffic[145] - International year-to-date net sales rose by $124 million, or 22%, to $691 million, driven by increases in sales in China and franchise royalties[147] Operating Income and Expenses - Operating loss improved by $28 million to $19 million in Q3 2025, with the operating loss rate improving to (1.3%) from (3.5%) in Q3 2024[107] - Gross profit for the third quarter of 2025 increased by $68 million to $536 million, with a gross profit rate rising to 36.4% from 34.8%[132] - General, administrative, and store operating expenses increased by $40 million, or 8%, to $555 million, primarily due to higher marketing and store selling expenses[136] - For year-to-date 2025, general, administrative, and store operating expenses increased by $58 million, or 4%, to $1.487 billion compared to year-to-date 2024[152] Sales Performance - Sales per average selling square foot increased by 8% to $137 in Q3 2025 compared to Q3 2024[120] - Comparable sales in North America increased, driven by higher average transaction value and conversion rates[106] - North America store net sales rose by $40 million, or 5%, to $778 million, driven by an increase in average transaction value despite flat overall traffic[129] - International net sales surged by $67 million, or 34%, to $265 million, primarily due to increases in sales in China and sourcing sales to partners[131] Tax and Losses - Adjusted net loss per diluted share was $(0.27) in Q3 2025, compared to $(0.50) in Q3 2024[116] - The effective tax rate for the third quarter of 2025 was 16.0%, down from 21.3% in the third quarter of 2024[139] - The effective tax rate for year-to-date 2025 was (42.9%), a significant increase from (7.8%) in year-to-date 2024, primarily due to additional tax expenses related to share-based compensation[155] Cash Flow and Debt - Net cash used for operating activities in year-to-date 2025 was $174 million, a decrease of $75 million compared to year-to-date 2024, driven by lower net operating cash outflows associated with working capital changes[162] - Net cash used for investing activities year-to-date 2025 was $163 million, consisting solely of capital expenditures related to store capital programs and technology investments[164] - Net cash provided by financing activities year-to-date 2025 was $360 million, primarily from borrowings of $545 million under the ABL Facility[167] - As of November 1, 2025, total long-term debt was $1.347 billion, a decrease from $1.414 billion as of November 2, 2024[173] Capital Expenditures and Investments - The company expects capital expenditures to be approximately $200 million for fiscal year 2025, focusing on store capital programs and technology investments[166] - The company’s investment portfolio primarily consisted of money market funds and bank deposits, with no material risk to principal associated with interest rate changes[195] Compliance and Credit Ratings - The company was in compliance with all covenants under its long-term debt and borrowing facilities as of November 1, 2025[183] - The company's credit ratings as of November 1, 2025, were Ba3 from Moody's and BB from S&P for corporate ratings, with a stable outlook[184] Strategic Focus - The company continues to focus on its strategic plan, including enhancing its Bra Authority and fueling growth in beauty[110] Store Operations - The total number of company-operated stores decreased by 61 to 1,404 as of November 1, 2025, with 12 new stores opened and 26 closed in the U.S.[121] Security Incident - A security incident in May 2025 estimated to have negatively impacted Q2 2025 net sales by approximately $20 million[113] Working Capital and Liquidity - The company had a working capital of $454 million as of November 1, 2025, compared to $260 million as of November 2, 2024[159] - The availability under the ABL Facility was $358 million as of November 1, 2025, down from $533 million as of February 1, 2025[160] Long-term Debt Structure - The principal value of the company's outstanding long-term debt was $984 million as of November 1, 2025, with an estimated fair value of $960 million[197] - The company’s long-term debt includes $375 million under the ABL Facility and $384 million under the Term Loan Facility, both of which have variable interest rates based on Term SOFR[196] - The company amended its ABL Facility, extending the maturity date to May 2030 and reducing the applicable interest rates on borrowings to 1.50%-1.75% for Term SOFR loans and 0.50%-0.75% for alternate base rate loans[178] Accounting Standards - The company is evaluating the impact of recently issued accounting standards on its consolidated financial statements, with no material changes expected from the standards adopted in 2025[186][189]

Exhibit 99.1 Victoria's Secret & Co. Reports Third Quarter 2025 Results and Raises Full Year Guidance Reynoldsburg, Ohio (December 5, 2025)—Victoria's Secret & Co. ("VS&Co" or the "Company") (NYSE: VSCO) today reported financial results for the third quarter ended November 1, 2025. Hillary Super, VS&Co Chief Executive Officer, said, "We delivered a standout third quarter, with outperformance on net sales and earnings per share, exceeding the high-end of our guidance. Net sales increased 9% over last year, d ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For fiscal year ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 0-25434 Azenta, Inc. (Exact name of Registrant as specified in its charter) Delaware 04-3040660 (State or other jurisdi ...

Revenue Performance - Fourth quarter 2025 revenue reached $1,065.2 million, a 5% increase year-over-year, with organic growth of 3%[3] - Fiscal year 2025 revenue totaled $4.1 billion, up 5% from fiscal 2024, with organic growth of 4%[11] - Fiscal first quarter 2026 revenue guidance is set between $1,019 million and $1,030 million, with organic growth projected at 3% to 4%[13] - Fiscal 2026 total revenue guidance is between $4,299 million and $4,338 million, with organic growth of 4.5% to 5.5%[13] - Total net sales for the three months ended October 31, 2025, were $1,065.2 million, representing a 5% year-over-year increase from $1,018.4 million in the same period of 2024[49] - CooperVision's net sales for the fourth quarter of 2025 were $709.6 million, with an organic growth rate of 3%[51] - CooperSurgical's net sales for the fourth quarter of 2025 were $355.6 million, also reflecting an organic growth rate of 4%[51] Earnings and Profitability - Fourth quarter 2025 non-GAAP diluted EPS was $1.15, an 11% increase year-over-year, while GAAP diluted EPS was $0.43, down 27%[3] - GAAP net income for the three months ended October 31, 2025, was $84.6 million, with an EPS of $0.43, compared to $117.5 million and $0.58 EPS for the same period in 2024, representing a decrease of 28.0% in net income[25] - Non-GAAP net income for the twelve months ended October 31, 2025, was $826.5 million, with an EPS of $4.13, compared to $740.5 million and $3.69 EPS for the same period in 2024, indicating an increase of 11.6% in net income[25] - The company reported a net income of $374.9 million for the year ended October 31, 2025, down from $392.3 million in 2024, a decrease of about 4.3%[49] - Diluted earnings per share for the year ended October 31, 2025, were $1.87, compared to $1.96 in 2024, representing a decline of approximately 4.6%[49] - Gross profit for the year ended October 31, 2025, was $2,682.1 million, up from $2,595.7 million in 2024, indicating a growth of approximately 3.4%[49] Share Repurchase and Cash Flow - The company repurchased $197.3 million of common stock in Q4 2025, with a total of $290.1 million repurchased for the fiscal year[13] - The Board of Directors expanded the share repurchase program by $1 billion, bringing total authorization to $2 billion[13] - The company expects free cash flow to exceed $2.2 billion from 2026 to 2028, supporting share repurchases and strategic investments[2] Charges and Expenses - Total charges related to acquisition and integration for the three months ended October 31, 2025, amounted to $15.7 million, compared to $7.2 million in the same period of 2024, reflecting a 118.1% increase[25] - The company incurred $24.6 million in exit of business charges for the three months ended October 31, 2025, while no such charges were recorded in the same period of 2024[25] - The company reported a total of $451.6 million in total charges for the twelve months ended October 31, 2025, compared to $348.2 million in 2024, marking a 29.7% increase[25] - Research and development expenses for the year ended October 31, 2025, totaled $172.2 million, compared to $155.1 million in 2024, reflecting an increase of 11%[49] Market Presence and Future Outlook - The company is focused on expanding its market presence through acquisitions, specifically mentioning the obp Surgical and Cook Medical integration efforts[28] - Future guidance for fiscal year 2026 includes anticipated growth in revenues and expected savings from ongoing reorganization activities[40] - The company has a workforce of over 15,000 and sells products in over 130 countries, positively impacting over fifty million lives each year[39] Balance Sheet - Total assets as of October 31, 2025, were $12,394.8 million, a slight increase from $12,315.2 million as of October 31, 2024[47] - Total liabilities decreased to $4,155.7 million as of October 31, 2025, from $4,231.6 million in 2024, a reduction of about 1.8%[47] Other Considerations - The company emphasized the importance of ongoing research and development activities and the potential impact of environmental regulations on future operations[43]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-42661 Armada Acquisition Corp. II (Exact name of registrant as specified in its charter) Cayman Islands 98-181589 ...

Revenue Growth - Income from operations increased by 35% to $8.9 million in the NRS segment, with recurring revenue rising 22% to $35.3 million[2] - Fintech segment total revenue grew by 15% to $42.7 million, with income from operations nearly doubling, up 97% to $6.4 million[2] - net2phone subscription revenue increased by 10% to $23.0 million, contributing to a 94% rise in income from operations to $1.9 million[2] - Consolidated revenue for IDT Corporation rose by 4% to $322.8 million, with gross profit increasing by 10% to $118.2 million[2] - BOSS Money digital revenue increased by 20% to $27.9 million, with total Fintech segment revenue reaching $42.7 million[12] - NRS total revenue for 1Q26 was $37.1 million, up from $30.4 million in 1Q25, representing a growth of 22% in recurring revenue[58] - NRS total revenue for the trailing twelve months (TTM) was $135.5 million[58] Profitability - Adjusted EBITDA for IDT Corporation grew by 26% to $37.9 million, reflecting strong performance across segments[2] - Net income attributable to IDT Corporation was $22.4 million in the three months ended October 31, 2025, compared to $17.2 million in the same period last year[36] - Earnings per share attributable to IDT Corporation common stockholders was $0.89 for both basic and diluted shares in 1Q26[36] - Net income for the three months ended October 31, 2025, was $24,096,000, an increase of 30.0% compared to $18,483,000 for the same period in 2024[38] - Adjusted EBITDA for 1Q26 was $37,900,000, reflecting a 25.0% increase from $30,000,000 in 1Q25[40] - Non-GAAP net income for 1Q26 was $23.6 million, up from $18.1 million in 1Q25, indicating a year-over-year increase of about 30.4%[57] - Basic earnings per share for 1Q26 were $0.89, compared to $0.68 in 1Q25, representing a growth of approximately 30.9%[57] Cash Flow and Capital Expenditures - IDT's cash and cash equivalents totaled $220.0 million as of October 31, 2025, with current assets at $550.5 million and current liabilities at $305.4 million[19] - Net cash used in operating activities in 1Q26 was $10.1 million, a decline attributed to working capital timing[20] - Capital expenditures increased to $5.8 million in 1Q26 from $5.3 million in 1Q25[21] - Cash, cash equivalents, and restricted cash at the end of the period were $313,166,000, down from $341,832,000 at the beginning of the period, representing a decrease of 8.5%[38] - Capital expenditures for the three months ended October 31, 2025, were $5,821,000, compared to $5,278,000 in the same period of 2024, indicating an increase of 10.3%[38] - Net cash used in operating activities was $(10,140,000) for the three months ended October 31, 2025, compared to $164,000 for the same period in 2024[38] Strategic Initiatives - The company plans to introduce the first generation of the BOSS Wallet, enhancing customer engagement and rewards[6] - In 1Q26, net2phone launched its AI coaching agent, Coach, following the first sales of its AI agent[17] - The company aims to enhance transparency in financial reporting by providing non-GAAP measures that reflect core operational strengths[45] - The company revised its non-GAAP Adjusted EBITDA definition to exclude non-cash compensation expense, enhancing comparability with peers[39] Operational Metrics - The average recurring revenue per terminal in the NRS segment rose by 6% to $313, driven by increased utilization of premium services[10] - Digital channel send volume for BOSS Money increased by 34% year-over-year, indicating strong transaction growth[13] - Customer funds deposits increased to $10,608,000 in 1Q26 from $2,810,000 in 1Q25, showing significant growth[38] - The number of seats served in net2phone's cloud communications offerings is a strong indicator of top-line growth and performance[60] - BOSS Money's digital send volume is a key operational metric for evaluating the performance of the digital remittance channel[62] Shareholder Returns - IDT Corporation repurchased 158 thousand shares of common stock for $7.6 million during the quarter[2] - The Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on December 23, 2025[24] Performance Metrics - The 'Rule of 40' score for NRS is calculated by adding the growth rate of recurring revenue to the Adjusted EBITDA margin, indicating a balance between growth and profitability[52] - IDT's Adjusted EBITDA margin for 1Q26 was approximately 39.9%, calculated as Adjusted EBITDA divided by GAAP revenue[56] - NRS' 'Rule of 40' score was 50% for 1Q26, indicating a strong balance between growth and profitability[58] - Adjusted net cash provided by operating activities (non-GAAP) for 1Q26 was $(22.7) million, compared to $(2.6) million in 1Q25[59]

Financial Performance - For the three months ended October 31, 2025, total revenues decreased by 2.3% to $251.2 million compared to $257.0 million for the same period in 2024 [103]. - Revenues from the Power Industry Services segment decreased by 7.8% to $195.5 million, representing approximately 77.8% of consolidated revenues for the quarter [104]. - The Industrial Construction Services segment saw a revenue increase of 19.4%, reaching $49.4 million for the three months ended October 31, 2025 [106]. - The net income for the three months ended October 31, 2025, was $30.7 million, reflecting a 9.7% increase from $28.0 million in the same period of 2024 [103]. - The diluted earnings per share increased by 8.5% to $2.17 for the three months ended October 31, 2025, compared to $2.00 for the same period in 2024 [103]. - For the nine months ended October 31, 2025, consolidated revenues were $682.6 million, a 6.4% increase from $641.7 million in 2024 [114]. - Power Industry Services revenues increased by 11.4%, or $56.7 million, to $552.8 million for the nine months ended October 31, 2025, representing 81.0% of consolidated revenues [115]. - Industrial Construction Services revenues decreased by 14.9%, or $20.1 million, to $114.6 million for the nine months ended October 31, 2025, representing 16.8% of consolidated revenues [117]. - Telecommunications Infrastructure Services revenues for the nine-month period ended October 31, 2025, were $15.1 million, an increase of 38.8% from $10.9 million in 2024 [119]. - Consolidated gross profit for the three months ended October 31, 2025, was approximately $46.9 million, with a gross profit percentage of 18.7%, compared to $44.3 million and 17.2% for the same period in 2024 [109]. - Consolidated gross profit for the nine months ended October 31, 2025, was approximately $128.1 million, with a gross profit percentage of 18.8%, compared to $93.4 million and 14.6% in 2024 [121]. - For the three months ended October 31, 2025, EBITDA was $40.3 million, compared to $37.5 million for the same period in 2024, reflecting a year-over-year increase of 4.8% [148]. - For the nine months ended October 31, 2025, EBITDA was $106.8 million, up from $74.2 million in 2024, representing a year-over-year increase of 43.8% [148]. - Net income for the nine months ended October 31, 2025, was $88.6 million, a 63.7% increase from $54.1 million in 2024 [114]. Project Backlog and Future Opportunities - As of October 31, 2025, the consolidated project backlog amounts to $3.0 billion, significantly up from $1.4 billion on January 31, 2025, primarily driven by the Power Industry Services segment [89]. - The Industrial Construction Services segment's project backlog increased to approximately $158.8 million as of October 31, 2025, up from $53.2 million on January 31, 2025 [102]. - The company is committed to constructing state-of-the-art natural gas-fired power plants, targeting opportunities in the U.S., Ireland, and the U.K. [91]. - The company has received full notice to proceed for multiple significant projects, including an 860 MW natural gas-fired power plant and a 1.4 GW combined-cycle natural gas-fired power plant, both expected to begin construction in the fourth quarter of Fiscal 2026 [92][93]. Cash and Financial Position - As of October 31, 2025, cash and cash equivalents were $306.3 million, an increase of $161.0 million from January 31, 2025 [126]. - The company is in compliance with the financial covenants of its Credit Agreement as of October 31, 2025 [138]. - The company has no remaining cash investment commitments related to solar tax credit entities as of October 31, 2025 [143]. - A loan of $5.0 million was funded to support the development phase of a natural gas-fired power plant, which remains outstanding as of October 31, 2025 [145]. Expenses and Market Risks - Selling, General and Administrative Expenses were $14.3 million for the three months ended October 31, 2025, representing 5.7% of consolidated revenues, compared to $14.0 million and 5.4% in 2024 [110]. - Recent changes in U.S. trade policy may introduce cost and supply chain uncertainties, particularly affecting construction materials and equipment, which could impact project costs and timelines [87]. - There have been no material changes in the company's exposure to market risk during the nine months ended October 31, 2025 [151]. Contributions and Tax Credits - The company made cash contributions of $11.5 million to solar tax credit entities during the nine months ended October 31, 2025 [143]. - The company believes that EBITDA is a meaningful measure for assessing operating performance, although it is not calculated in accordance with U.S. GAAP [146].

Financial Performance - Net sales for the thirteen weeks ended November 1, 2025, were $331.3 million, a 2.6% increase from $324.3 million for the same period in 2024[24] - Gross profit for the thirty-nine weeks ended November 1, 2025, was $278.3 million, compared to $266.9 million for the same period in 2024, reflecting a 4.3% increase[24] - The company reported a net loss of $28.3 million for the thirty-nine weeks ended November 1, 2025, compared to a net loss of $24.3 million for the same period in 2024[24] - For the thirty-nine weeks ended November 1, 2025, the company reported a net loss of $28,329,000 compared to a net loss of $24,336,000 for the same period in the previous year, representing an increase in loss of approximately 16.4%[32] - The Company recorded a consolidated net loss of $28,329 for the thirty-nine weeks ended November 1, 2025, compared to a loss of $24,336 in 2024[72] Assets and Liabilities - Total current assets increased to $445.9 million as of November 1, 2025, from $366.0 million as of February 1, 2025, representing a 22% increase[21] - Total liabilities rose to $704.3 million as of November 1, 2025, compared to $616.4 million as of February 1, 2025, indicating a 14.2% increase[21] - The company’s cash and cash equivalents decreased to $2.2 million as of November 1, 2025, down from $2.8 million as of February 1, 2025[21] - Cash and cash equivalents at the end of the period were $2,246,000, down from $2,666,000 at the end of the previous year[32] - Long-term debt increased from $24,067 in February 2025 to $44,007 in November 2025[74] Operating Expenses - Selling, general, and administrative expenses for the thirteen weeks ended November 1, 2025, were $104.5 million, up from $100.0 million in the same period of 2024, marking a 4.9% increase[24] - Operating lease expense for the thirteen weeks ended November 1, 2025, was $17,452, slightly up from $17,226 in 2024, and for the thirty-nine weeks, it increased from $51,385 to $52,114[65] - The company incurred $9,359,000 in interest expenses during the period, slightly up from $9,013,000 in the previous year[32] - The company’s stock-based compensation expense was $2,400,000 for the thirty-nine weeks ended November 1, 2025, down from $3,438,000 in the same period last year[32] Revenue Breakdown - Revenue from the Camping department decreased from 11.7% in 2024 to 10.4% in 2025 for the thirteen weeks ended, and from 12.5% to 11.3% for the thirty-nine weeks ended[56] - The Hunting and Shooting department accounted for 59.7% of net sales in the thirteen weeks ended November 1, 2025, up from 57.9% in 2024, and 57.2% compared to 56.2% for the thirty-nine weeks ended[56] Market Strategy - The company plans to focus on financial discipline and rigor in response to adverse macroeconomic conditions[16] - The company is exploring new market opportunities and plans to open additional stores in future periods[16] Legal Matters - The company is involved in various legal matters but management does not foresee any material impact on its financial condition or results of operations[113] - A class action lawsuit was filed against the company regarding compensation issues, which is currently being mediated[115] - Another class action lawsuit was filed concerning non-disclosure agreements related to salary information, which is also under mediation[116] Stock and Shares - The weighted average shares outstanding for basic earnings per share increased to 38.5 million for the thirteen weeks ended November 1, 2025, compared to 37.9 million for the same period in 2024[24] - The company did not meet fiscal year 2024 performance targets, resulting in the forfeiture of all shares as of February 1, 2025[107] - As of November 1, 2025, the company had a balance of 125 nonvested performance-based stock awards with a weighted average grant-date fair value of $2.84 per share[107] - During the 39 weeks ended November 1, 2025, the company issued 1,354 nonvested stock units at a weighted average grant date fair value of $1.52 per share[108] - The balance of outstanding nonvested stock units as of November 1, 2025, was 2,024 shares with a weighted average grant-date fair value of $2.54[110]

Store Operations - Tilly's operated 230 stores across 33 states as of November 1, 2025, down from 246 stores the previous year[104] - Tilly's expects to close a total of 21 stores during fiscal 2025, with 14 already closed by November 2025[108] Financial Performance - Net sales for the thirteen weeks ended November 1, 2025, were $139.6 million, a decrease of 2.0% compared to $143.4 million for the same period in 2024[120] - Total net sales for the third quarter were $139.6 million, a decrease of 2.7%, while comparable net sales increased by 2.0%[123] - Total net sales for the 39 weeks ended were $398.5 million, a decrease of 5.6%, with comparable net sales down by 3.0%[130] Comparable Store Sales - Comparable store net sales increased by 2.0% for the thirteen weeks ended November 1, 2025, compared to a decline of 3.4% for the same period in 2024[121] Gross Profit and Margins - Gross profit for the thirty-nine weeks ended November 1, 2025, was $113.0 million, representing 28.4% of net sales, compared to $111.4 million or 26.4% of net sales for the same period in 2024[120] - Gross profit was $42.6 million, or 30.5% of net sales, an improvement from 25.9% last year, with product margins increasing by 390 basis points[124] Operating Loss - Operating loss for the thirteen weeks ended November 1, 2025, was $1.9 million, significantly improved from a loss of $14.1 million for the same period in 2024[120] - Operating loss was $1.9 million, or 1.4% of net sales, significantly improved from a loss of $14.1 million, or 9.8% of net sales, last year[127] Net Loss - Net loss was $1.4 million, or $0.05 per share, compared to a net loss of $12.9 million, or $0.43 per share, last year[129] E-commerce Performance - E-commerce net sales for the thirteen weeks ended November 1, 2025, were $29.3 million, accounting for 21.0% of total net sales[121] - Net sales from physical stores were $110.3 million, a decrease of 0.9%, while e-com net sales were $29.3 million, a decrease of 9.0%[126] Expenses - SG&A expenses decreased to $44.5 million, or 31.9% of net sales, down from 35.7% last year, primarily due to reductions in store payroll and e-com fulfillment labor expenses[125] - Store payroll and related expenses accounted for approximately 47% of total selling, general and administrative expenses in the first nine months of fiscal 2025[106] Cash Flow and Working Capital - Net cash used in operating activities was $4.5 million, a significant improvement from $38.2 million last year, attributed to better inventory management[141] - Working capital decreased to $20.7 million from $31.6 million at the beginning of the fiscal year, primarily due to an increase in accounts payable[138] Tax and Compliance - The effective income tax rate is expected to remain near zero until consistent operating profits are achieved due to a full valuation allowance on deferred tax assets[107] - As of November 1, 2025, the company was in compliance with all covenants and had no outstanding borrowings under its credit agreement, with eligibility to borrow up to $61.6 million[151] Market Risks - As of November 1, 2025, there were no material changes in the market risks described in the Annual Report[154] Accounting Principles - The company prepares financial statements in accordance with generally accepted accounting principles, requiring estimates and assumptions about future events[153]

Financial Performance - For Q3 fiscal 2026, the company's net income was $1.2 million, or $0.05 per diluted share, down from $1.7 million, or $0.07 per diluted share in Q3 fiscal 2025, reflecting a decrease in revenue by 5.2% year-over-year [81]. - Total revenue for Q3 fiscal 2026 was $644.5 million, a decrease of $35.3 million compared to $679.8 million in Q3 fiscal 2025, primarily due to declining agricultural commodity prices and total crop receipts [93]. - Gross profit for the first nine months of fiscal 2026 decreased by 14.2% to $295.6 million, with a gross profit margin decline to 16.6% from 17.7% [113]. - The company reported a total loss before income taxes of $22.7 million for the first nine months of fiscal 2026, compared to income of $8.8 million in the same period of fiscal 2025 [122]. Revenue Breakdown - Equipment revenue decreased by 7.1% to $459.9 million in Q3 fiscal 2026 from $495.1 million in Q3 fiscal 2025, while parts revenue increased by 1.0% to $122.3 million [93]. - Agriculture segment revenue decreased by 12.7% to $420.9 million, primarily due to lower equipment revenue driven by challenging industry conditions [104]. - Europe segment revenue increased by 87.6% to $117.0 million, attributed to higher equipment demand from EU stimulus programs [108]. - Australia segment revenue decreased by 40.4% to $29.9 million, resulting from the normalization of sprayer deliveries after a backlog in fiscal 2025 [110]. - In the first nine months of fiscal 2026, the Agriculture segment revenue decreased by 15.0% to $1,151.1 million compared to $1,353.7 million in the same period of fiscal 2025 [122]. - The Construction segment revenue decreased by 6.8% to $220.8 million in the first nine months of fiscal 2026, down from $237.0 million in the prior year [125]. - The Europe segment revenue increased by 57.9% to $309.0 million for the first nine months of fiscal 2026, compared to $195.6 million in the same period last year [127]. - The Australia segment revenue decreased by 33.0% to $104.4 million in the first nine months of fiscal 2026, down from $155.9 million in the prior year [129]. - Total revenue for the first nine months of fiscal 2026 was $1,785.3 million, an 8.1% decrease from $1,942.2 million in fiscal 2025 [122]. Operating Expenses and Profitability - Operating expenses increased by 1.7% to $100.5 million in Q3 fiscal 2026, with operating expenses as a percentage of revenue rising to 15.6% from 14.5% [96]. - Operating expenses for the first nine months of fiscal 2026 were $289.5 million, a decrease of 1.2%, with operating expenses as a percentage of revenue increasing to 16.2% [115]. - The gross profit for equipment sales increased by 1.8% to $37.5 million, with a gross profit margin of 8.1%, up from 7.4% in the prior year [95]. - The company experienced a decrease in floorplan interest expense by $3.8 million in Q3 fiscal 2026, attributed to lower interest-bearing inventory levels and lower variable interest rates [81]. Market Conditions and Risks - Same-store sales analysis indicates a decline in overall sales performance, reflecting challenging industry conditions [87]. - The projected decline in total crop receipts is approximately 16% since the peak levels reached in 2022, impacting demand for agricultural equipment [78]. - The company is monitoring the potential impact of U.S. tariffs on imports and retaliatory tariffs on exports, which could affect wholesale prices and margins [80]. - The company faces risks related to supply chain disruptions that could affect its ability to meet customer demand [144]. Cash Flow and Financial Position - Net cash provided by operating activities was $83.9 million for the first nine months of fiscal 2026, compared to net cash used of $56.2 million in the prior year [139]. - Net cash used for investing activities decreased to $17.0 million in the first nine months of fiscal 2026 from $29.4 million in fiscal 2025 [140]. - As of October 31, 2025, the company had floorplan payable lines of credit totaling $1.5 billion, including a $875.0 million credit facility with CNH [134]. - As of October 31, 2025, the company had floorplan payables of $739.6 million, with $407.1 million being variable-rate debt [147]. Foreign Exchange and Geopolitical Risks - The company has $1.8 million of net monetary assets in Ukrainian hryvnia (UAH) as of October 31, 2025, and is managing its UAH exposure through reduced asset levels and borrowing [148]. - The continuation of the Russia/Ukraine conflict may lead to significant UAH devaluations, adversely affecting results of operations and cash flows [148]. - The company uses derivative financial instruments, primarily foreign exchange forward contracts, to manage foreign currency exchange rate risk [148]. - A hypothetical 10% change in foreign exchange rates is not expected to materially impact the company's results of operations or cash flows [149]. Strategic Initiatives - The company operates through four segments: Agriculture, Construction, Europe, and Australia, with diverse revenue sources including new and used equipment sales, parts sales, service, and equipment rental [77]. - The company has substantial dependence on CNH for inventory allocation to meet customer demands [144]. - The integration of the O'Connors acquisition presents growth opportunities and potential synergies for the company [144]. - The company anticipates that farm income levels will significantly impact customer demand for agricultural equipment and services [144]. - A one percentage point change in interest rates could impact pre-tax earnings and cash flow by approximately $4.1 million over the next 12 months [147].