UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period 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 1-13677 MID PENN BANCORP, INC. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Inc ...

Financial Performance - Total revenues for Q3 2025 were $536.99 million, a decrease of 8.8% from $589.13 million in Q3 2024[16] - Gross profit for Q3 2025 was $200.88 million, compared to $204.85 million in Q3 2024, reflecting a gross margin of approximately 37.3%[16] - Net loss for Q3 2025 was $3.40 million, or $0.14 per share, compared to a net loss of $32.98 million, or $1.35 per share, in Q3 2024[16] - Total revenues for the three months ended September 30, 2025, were $536,990, a decrease of 8.8% compared to $589,131 for the same period in 2024[63] - For the nine months ended September 30, 2025, total revenues were $1,690,558, down from $1,752,241 in 2024, reflecting a decline of 3.5%[63] - The company reported a net gain on the sale of business amounting to $44,792 thousand in the nine months ended September 30, 2025[25] - The company recognized a consolidated net loss of $3,396 for the three months ended September 30, 2025, compared to a loss of $32,983 in 2024[74] - For the nine months ended September 30, 2025, the net income was $16.466 million, a significant improvement from a net loss of $93.860 million in the same period of 2024[86] Assets and Liabilities - Total current assets decreased to $1.21 billion as of September 30, 2025, from $1.44 billion at December 31, 2024[14] - Total liabilities decreased to $1.93 billion as of September 30, 2025, from $2.20 billion at December 31, 2024[14] - Total assets as of September 30, 2025, were $4.10 billion, a decrease from $4.20 billion at December 31, 2024[14] - The company’s total contract liabilities decreased to $37,213 as of September 30, 2025, from $42,177 at the beginning of the year[65] - The company’s accrued liabilities totaled $316,103 thousand as of September 30, 2025, compared to $306,923 thousand as of December 31, 2024, reflecting an increase of about 3.9%[121] Expenses - Operating expenses for Q3 2025 were $187.16 million, down from $196.62 million in Q3 2024, indicating a reduction of approximately 4.5%[16] - Research and development expenses remained stable at $21.25 million in Q3 2025, compared to $21.03 million in Q3 2024[16] - Depreciation and amortization for the nine months ended September 30, 2025, was $149,912 thousand, down from $166,519 thousand in 2024[25] - Stock compensation expense for the nine months ended September 30, 2025, was $41,879 thousand, compared to $34,366 thousand in 2024[25] - Restructuring expenses for the three and nine months ended September 30, 2025, were $6.2 million and $21.2 million, respectively, compared to $3.6 million and $16.6 million for the same periods in 2024[38] - Strategic transaction and integration expenses for the three and nine months ended September 30, 2025, were $6.9 million and $24.9 million, respectively, down from $13.2 million and $33.5 million in 2024[40] Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2025, was $119,248 thousand, compared to $163,841 thousand in 2024[25] - Net cash used in investing activities for the nine months ended September 30, 2025, was $140,620 thousand, while it was $(62,414) thousand in 2024[25] - Cash and cash equivalents at the end of the period on September 30, 2025, were $299,732 thousand, down from $312,512 thousand at the end of September 30, 2024[25] Debt and Financing - Principal repayments of long-term debt for the nine months ended September 30, 2025, totaled $272,750 thousand, compared to $38,250 thousand in 2024[25] - The company made a prepayment of $200 million on Term Loan A during the second quarter of 2025, funded by the sale of its IV Solutions business[143] - The outstanding principal balance of Term Loan A was $559.7 million as of September 30, 2025, with no borrowings under the $500 million revolving credit facility[173] - The company was in compliance with all financial covenants as of September 30, 2025[151] - The maximum Senior Secured Leverage Ratio is 4.50 to 1.00 until June 30, 2024, and thereafter it will be 4.00 to 1.00[149] Investments and Acquisitions - The company recognized a gain of $44.8 million from the sale of a 60% ownership interest in its IV Solutions business, which included a $45.6 million gain from the disposal and a $19.4 million gain from the fair value of the retained 40% interest[48] - The investment in Otsuka ICU Medical LLC was recorded at $131.1 million as of September 30, 2025, reflecting the retained 40% interest in the IV Solutions business[108] - The total consideration for the acquisition of Smiths Medical included a potential earn-out payment of $100 million contingent on stock price targets[96] Taxation - The effective tax rate for the three months ended September 30, 2025, was 26%, compared to an effective tax rate of (84)% for the same period in 2024[120] - The company recorded a tax benefit of $12.0 million for the year ended December 31, 2024, related to U.S. return-to-provision adjustments[123] - The company has considered the impact of the EU's Pillar Two legislation on its tax provision for fiscal year 2025, which may alter tax obligations in certain countries[124] Other Financial Metrics - The company’s total comprehensive loss for the nine months ended September 30, 2025, was $105,395 thousand[22] - The company recorded a net reversal of $0.7 million for the estimated costs related to field service corrective actions associated with the 2021 FDA Warning Letter, adjusting the total accrued amount to approximately $23.3 million[163] - The company has a share purchase plan approved for up to $100 million, with no shares purchased under this plan during the three months ended September 30, 2025[156]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period 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: 001-40475 Janux Therapeutics, Inc. (Exact Name of Registrant as Specified in its Charter) | Delaware | 82-22891 ...

Financial Performance - Total revenues for Q3 2025 were $77,950,000, representing a 3.0% increase from $75,687,000 in Q3 2024[113] - Casino revenues increased by 6.6% to $59,823,000 in Q3 2025, compared to $56,116,000 in Q3 2024[114] - Operating income for Q3 2025 was $3,436,000, a 40.3% increase from $2,449,000 in Q3 2024[113] - Net loss for Q3 2025 was $7,678,000, a 9.4% improvement from a net loss of $8,472,000 in Q3 2024[113] - Adjusted EBITDA for the three months ended September 30, 2025, was $14.8 million, compared to $11.7 million for the same period in 2024, representing a 26.4% increase[144] - For the nine months ended September 30, 2025, Adjusted EBITDA was $37.4 million, slightly down from $38.3 million in the prior year, indicating a 2.3% decrease[144] - The net loss for the three months ended September 30, 2025, was $7.7 million, compared to a net loss of $8.5 million in the same period of 2024, showing a 9.4% improvement[144] Revenue Sources - Slot coin-in for Q3 2025 was $831,917,000, a 3.7% increase from $802,072,000 in Q3 2024[114] - Table game drop increased by 4.9% to $58,449,000 in Q3 2025, compared to $55,733,000 in Q3 2024[114] - Consolidated total revenues increased by 3.0% (or $2.3 million) for the three months ended September 30, 2025, and 3.6% (or $7.9 million) for the nine months ended September 30, 2025, driven by operations at American Place and Chamonix[118] - Total revenues for the Midwest & South segment increased by 7.0% (or $3.8 million) for the three months ended September 30, 2025, with American Place achieving a 14.0% revenue increase[130] - Total revenues for the West segment declined by 7.2% (or $1.4 million) for the three months ended September 30, 2025, but improved by 1.1% (or $0.5 million) for the nine months ended September 30, 2025[135] - Revenues for the Contracted Sports Wagering segment declined to $1.6 million for the three months ended September 30, 2025, down from $1.8 million in the prior-year period[140] Expenses and Debt - Consolidated operating expenses rose by 1.7% (or $1.3 million) for the three months ended September 30, 2025, and 3.7% (or $7.9 million) for the nine months ended September 30, 2025, primarily due to increased expenses at American Place and Chamonix[119][120] - Net interest expense for the three months ended September 30, 2025, was $11.1 million, relatively flat compared to $11.0 million in the prior-year period[122] - Long-term debt stood at $450.0 million under the Notes and $30.0 million under the Credit Facility as of September 30, 2025[159] - The company has significant outstanding debt, with principal debt maturing in February 2028, which may require additional financing for planned capital expenditures[157] - The company estimates a total of $53.5 million will be due to the Illinois Gaming Board over six years, impacting future cash flows[160] Investments and Facilities - The company opened a temporary facility at American Place in February 2023 and is designing a permanent gaming facility[96] - The construction budget for the permanent American Place facility is approximately $302 million, excluding capitalized interest[162] - The company expects to internally generate a portion of the needed funds for American Place but will likely require additional financing[162] - Capital expenditures may fluctuate based on strategic investments in new or existing facilities, with no assurance of project completion or success[163] - The company has opened two new casinos, with operations currently in their ramp-up periods, contributing to future revenue growth[152] Corporate Governance and Future Outlook - Adjusted EBITDA is used as a key performance measure, reflecting the company's focus on operational efficiency[110] - Forward-looking statements include expectations regarding growth strategies, construction budgets, and operational performance for the American Place facility[168] - The company cannot assure the success of any additional projects or that they will be pursued[164] - The company undertakes no obligation to publicly update forward-looking statements unless required by law[170] - Critical accounting estimates and policies have not significantly changed since the end of 2024[167] Other Notable Events - The sale of Stockman's Casino was completed for $9.2 million, with a gain of $1.9 million on the real property sale[104] - The sports wagering agreement in Indiana was extended through December 2031, with a prepayment of $1.5 million[105] - Corporate expenses decreased by $0.3 million and $0.5 million for the three and nine months ended September 30, 2025, respectively, compared to the prior-year periods[141] - Effective income tax rates for the three months ended September 30, 2025, were 0.2%, compared to 1.5% in the prior-year period, due to projections for pre-tax book income[123] - The lease for the Grand Lodge at Hyatt Lake Tahoe expires on December 31, 2034, with potential early termination upon significant renovation[165] - Existing bonds are callable and scheduled to mature in February 2028, indicating potential refinancing needs[162]

Financial Performance - Net revenues for the quarter ended September 28, 2025, were $375.3 million, a decrease of 1.2% compared to $379.9 million for the same quarter in 2024[110] - The net loss attributable to Krispy Kreme, Inc. for the quarter was $19.4 million, compared to a net income of $39.6 million in the same quarter of 2024[110] - Adjusted EBITDA for the third quarter of fiscal 2025 was $40.6 million, representing a 17.0% increase from $34.7 million in the third quarter of fiscal 2024[110] - Total net revenues for Q3 fiscal 2025 were $375.3 million, a decline of $4.6 million or approximately 1.2% compared to Q3 fiscal 2024[141] - U.S. segment net revenue decreased by $12.2 million or approximately 5.3%, primarily due to a $10.0 million reduction from the divestiture of Insomnia Cookies[142] - International segment net revenue increased by $9.5 million or approximately 7.3%, driven by growth in Canada, Japan, and Mexico[143] - Market Development segment net revenue declined by $1.9 million or approximately 9.2%, with organic revenue down $1.1 million or approximately 5.3%[144] - Total net revenues for the first three quarters of fiscal 2025 were $1,130.2 million, a decline of $131.1 million or approximately 10.4% compared to the same period in fiscal 2024[156] Operational Changes - The company opened its first Hot Light Theater Shop in Spain in October 2025 and plans to open a shop in Uzbekistan in Q4 fiscal 2025[111] - The termination of the Business Relationship Agreement with McDonald's USA resulted in the exit of approximately 2,400 DFD Doors in the third quarter of fiscal 2025[115] - The company is focusing on expanding profit margins through operational efficiency improvements, including optimizing production and outsourcing U.S. logistics[112] - The company plans to continue outsourcing U.S. DFD deliveries to 3PL carriers, with expectations to expand this strategy through mid-fiscal 2026[124] - The company is converting certain legacy Hubs in the U.S. segment to add Spokes, enhancing its distribution efficiency[124] - The company plans to increase the number of quality Spokes through growth with DFD partners across the U.S. while strategically closing underperforming DFD Doors[137] Expenses and Losses - The company experienced an operating loss of $7,180,000 for the quarter, an improvement of 55.1% compared to an operating loss of $16,004,000 in the same quarter last year[139] - Selling, general and administrative expenses decreased by 30.5% to $49,393,000, down from $71,110,000 in the prior year[139] - The company reported a goodwill impairment of $4,805,000 during the quarter, which was not present in the same quarter last year[139] - The company incurred $11,858,000 in strategic initiatives costs during the quarter, slightly up from $11,426,000 in the previous year[139] - Operating expenses increased by $3.9 million or 2.0%, with operating expenses as a percentage of revenue rising from 50.6% to 52.2%[145] - Selling, general and administrative (SG&A) expenses decreased by $21.7 million or 30.5%, as a percentage of revenue dropping from 18.7% to 13.2%[146] Cash Flow and Debt - Cash and cash equivalents were $30.7 million as of September 28, 2025, indicating sufficient liquidity for at least the next twelve months[175] - The company no longer expects to pay quarterly cash dividends to align capital allocation with growth strategy[176] - Cash used for operations totaled $11.1 million for the first three quarters of fiscal 2025, a fluctuation of $29.9 million compared to the same period in fiscal 2024[179] - Cash provided by investing activities was $3.4 million for the first three quarters of fiscal 2025, a decrease of $41.3 million compared to the first three quarters of fiscal 2024, primarily due to the divestiture of Insomnia Cookies for $75.0 million[180] - Total long-term debt as of September 28, 2025, was $979.5 million, an increase from $900.9 million as of December 29, 2024[183] - The leverage ratio under the 2023 Facility was 4.5 to 1.00 as of the end of the third quarter of fiscal 2025, compared to 3.9 to 1.00 at the end of fiscal 2024[185] Revenue Growth and Market Impact - Organic revenue growth was 0.6% for the quarter ended September 28, 2025, and a decline of 0.4% for the three quarters ended on the same date[110] - Approximately 35% of total net revenues through the three quarters ended September 28, 2025, were attributable to subsidiaries with functional currencies other than the U.S. dollar, amounting to approximately $392.6 million[194] - A 10% increase or decrease in the average exchange rate of foreign currencies against the U.S. dollar would have resulted in a $39.3 million impact on total net revenues for the three quarters ended September 28, 2025[194]

Acquisition and Mergers - The company entered into a definitive agreement to acquire TEGNA Inc. for $6.2 billion, with a cash payment of $22 per share, expected to close by the second half of 2026[124][125]. - Nexstar entered into a Merger Agreement with TEGNA on August 18, 2025, with committed financing from commercial banks[157]. - The company acquired the assets of WBNX-TV for a cash purchase price of $22 million[130]. - The company acquired a 75.0% ownership interest in The CW on September 30, 2022, which is not a guarantor of the 4.75% and 5.625% Notes[170]. Financial Performance - Net revenue decreased by 12.3% to $1.2 billion for the three months ended September 30, 2025, and by 6.6% to $3.7 billion for the nine months ended September 30, 2025, primarily due to lower political advertising[130][140]. - Advertising revenue decreased by $146 million, a 23.5% decline for the three months ended September 30, 2025, primarily due to a decrease in political advertising by $145 million[134][136]. - Income from operations decreased by 47.8% to $175 million for the three months ended September 30, 2025, and by 28.7% to $607 million for the nine months ended September 30, 2025[134]. - Distribution revenue decreased by $11 million primarily due to MVPD subscriber attrition[141]. - Advertising revenue decreased by $246 million, with a $213 million decline in political advertising due to 2025 not being an election year[142]. - Income from equity method investments decreased by $28 million primarily due to a decrease in net income of TV Food Network[145]. - Net income attributable to the Obligor Group for the same period was $314 million[171]. - Total net revenue for the nine months ended September 30, 2025, was $3,516 million, an increase from the previous period[171]. Cash Flow and Debt Management - Net cash provided by operating activities was $701 million for the nine months ended September 30, 2025, down from $839 million in 2024[152]. - Total outstanding debt as of September 30, 2025, was $6.4 billion, representing 73.6% of the Company's combined capitalization[158]. - The company completed the refinancing of senior secured credit facilities, repaying $157 million of its debt during the nine months ended September 30, 2025[130]. - Interest expense decreased by $52 million, or 15.3%, due to lower interest rates and reduced outstanding debt[146]. - The company's long-term debt obligations bear interest rates ranging from 5.63% to 6.63% as of September 30, 2025[176]. - An increase in SOFR by 100 basis points would increase annual interest expense by $37 million, while a decrease would decrease annual interest expense by the same amount[177]. - The company has no financial instruments in place to hedge against changes in benchmark interest rates on its senior secured credit facilities as of September 30, 2025[177]. Shareholder Returns - The company declared and paid dividends of $56 million during the three months ended September 30, 2025, and returned $294 million to shareholders through stock repurchases and dividends during the nine months ended September 30, 2025[130]. - The Company declared a quarterly cash dividend of $1.86 per share, payable on November 26, 2025[156]. Assets and Liabilities - Total current assets as of September 30, 2025, amounted to $1,273 million, up from $1,160 million as of December 31, 2024, reflecting a growth of approximately 9.7%[170]. - Total noncurrent assets decreased to $8,933 million as of September 30, 2025, from $9,140 million as of December 31, 2024, representing a decline of about 2.3%[170]. - Total current liabilities were $667 million as of September 30, 2025, compared to $685 million as of December 31, 2024, indicating a reduction of approximately 2.6%[170]. Taxation - The effective tax rates were 32.3% for the three months ended September 30, 2025, reflecting a 1.4% increase due to nondeductible permanent differences[139]. - The company expects a decrease in political advertising revenue in 2025 compared to 2024, as 2025 is not an election year[133]. Operating Expenses - Direct operating expenses decreased by $21 million due to restructuring initiatives, offset by nonrecurring costs related to a disputed customer claim[143].

Revenue Performance - Total revenues decreased by $4.2 million to $8.6 million in the three months ended September 30, 2025, a decline of 33% compared to the same period in 2024[96]. - Product revenue fell by $4.4 million to $6.8 million in the three months ended September 30, 2025, representing a 39% decrease year-over-year[97]. - Research and development revenue increased by $0.1 million to $1.8 million in the three months ended September 30, 2025, a 7% increase compared to the same period in 2024[98]. - Product revenue for the three months ended September 30, 2025, was $6,807,000, a decrease of $4,351,000 or 39% compared to $11,158,000 in 2024[101]. Expenses and Losses - Total costs and operating expenses decreased by $1.8 million to $27.6 million in the three months ended September 30, 2025, a 6% reduction compared to the same period in 2024[100]. - Loss from operations increased by $2.4 million to $18.9 million in the three months ended September 30, 2025, a 14% increase compared to the same period in 2024[92]. - Research and development expenses increased by $2.4 million in the three months ended September 30, 2025, primarily due to higher employee-related costs and lab supplies[103]. - Selling, general and administrative expenses decreased by $2.4 million during the three months ended September 30, 2025, mainly due to lower consulting and outside services[105]. - Net loss for the three months ended September 30, 2025, was $19.6 million, a slight improvement from a net loss of $20.6 million in the same period in 2024[113]. Cash Flow and Financing - Cash and cash equivalents increased to $25,351,000 as of September 30, 2025, compared to $19,264,000 at December 31, 2024[116]. - The company borrowed an additional $10.0 million on June 27, 2025, under a loan agreement, bringing the total borrowed to $40.0 million[115]. - Net cash used in operating activities increased by $6.5 million to $(39,468) thousand for the nine months ended September 30, 2025, compared to $(32,942) thousand in 2024[125]. - Net cash provided by investing activities increased by $71.9 million to $17,789 thousand for the nine months ended September 30, 2025, compared to $(54,117) thousand in 2024[126]. - Net cash provided by financing activities decreased by $31.6 million to $27,748 thousand for the nine months ended September 30, 2025, compared to $59,390 thousand in 2024[127]. - As of September 30, 2025, unrestricted cash, cash equivalents, and short-term investments totaled $58.7 million[131]. Interest Income and Other Income - Interest income decreased by $0.2 million to $0.6 million in the three months ended September 30, 2025, a 25% decline year-over-year[92]. - Interest income decreased by $0.2 million and $0.8 million in the three and nine months ended September 30, 2025, respectively, due to lower average cash balances[109]. - Total other income (expense), net for the three months ended September 30, 2025, was $(4,073,000), a decrease of $1,248,000 or 84% compared to the same period in 2024[107]. Future Outlook and Risks - The company expects that existing cash and cash equivalents, along with future product revenues, will provide adequate funds for operations for at least the next 12 months[122]. - The company may require additional capital for product development and commercialization, depending on various factors including financial success and market opportunities[123]. - The company is exposed to foreign currency risk, particularly from non-functional currency denominated monetary assets, which may affect operational results[133]. - A hypothetical 10% decrease in market interest rates would result in a $0.3 million impact on future interest income and cash flows[131]. Research and Development Initiatives - The ECO Synthesis Innovation Lab was completed at the end of 2024, enabling the synthesis of gram-scale quantities of siRNA constructs for pre-clinical testing[90]. - In 2025, the company expects to manufacture GLP-grade siRNA for customers and anticipates entering a partnership with a large-scale CDMO for GMP-grade siRNA production[90]. - The company reported a 19% increase in research and development expenses to $40.6 million for the nine months ended September 30, 2025, compared to $34.2 million in the same period in 2024[100]. - Product gross margin improved to 64% for both the three and nine months ended September 30, 2025, compared to 61% and 53% in the corresponding periods in 2024[101].

Financial Performance - Total revenue for Q3 2025 was $35.1 million, a decrease of 1% compared to the same period last year[8] - Total revenue for the three months ended September 30, 2025, was $35,065, a decrease of 1% compared to $35,409 in the same period of 2024[29] - Non-GAAP net income for Q3 2025 was $4.3 million, with adjusted EBITDA at $6.5 million[8] - Adjusted EBITDA for the three months ended September 30, 2025, was $6,503, down 33% from $9,676 in 2024, resulting in an adjusted EBITDA margin of 19%[32] - Non-GAAP net income for the three months ended September 30, 2025, was $4,348, a decrease of 20% from $5,432 in 2024, with a non-GAAP net income margin of 12%[32] - Net loss for the nine months ended September 30, 2025, was $14,272, compared to a net loss of $8,743 in 2024, representing a 63% increase in losses[31] Cash Flow and Guidance - Free cash flow for Q3 2025 was $1.2 million, primarily impacted by unfavorable timing of cash payments related to working capital[8] - Free cash flow for the three months ended September 30, 2025, was $1,228, significantly down from $6,679 in 2024, reflecting a free cash flow margin of 4%[32] - Free cash flow guidance for the fiscal year ending December 31, 2025, is estimated to be between $19.0 million and $23.0 million[10] Membership and Engagement - Paid members decreased by 6% year-over-year, totaling 642,000[8] - Expensify Travel bookings increased by 36% quarter-over-quarter and 95% since Q1 2025[8] Stock and Shareholder Activity - The company repurchased 1,579,763 shares of Class A common stock for approximately $3.0 million[8] Operational Metrics - Gross margin for the nine months ended September 30, 2025, was $54,217, down from $56,141 in 2024, reflecting a decrease of approximately 3%[29] - Total operating expenses for the nine months ended September 30, 2025, increased to $68,299, up 19% from $57,426 in 2024[29] Assets and Liabilities - Cash and cash equivalents at the end of the period were $104,381, an increase from $85,254 at the end of September 2024[31] - Total assets as of September 30, 2025, were $186,835, an increase of 8% from $173,680 as of December 31, 2024[27] - Total liabilities as of September 30, 2025, were $51,175, up 12% from $45,437 as of December 31, 2024[27] Product and Partnership Developments - The upgraded Concierge AI was introduced, designed to enhance user interaction and support[3][5] - Expensify became the official Travel and Expense partner of the Brooklyn Nets in Q3 2025[8]

Revenue Performance - Total net revenues for the three months ended September 30, 2025, were $191,840,000, a slight increase of 0.3% compared to $191,214,000 in the same period of 2024[163]. - Product revenues, net, increased by 2% to $191,840,000, driven primarily by a 33% increase in BAQSIMI® sales, which reached $53,608,000[163][164]. - Total net revenues decreased by 2% to $536.8 million for the nine months ended September 30, 2025, compared to $545.4 million in 2024[1]. - Product revenues increased by 2% to $536.8 million, driven primarily by a 63% increase in BAQSIMI® sales, totaling $138.7 million[1][2]. Profitability - Gross profit decreased by 3% to $98,646,000, with gross margin as a percentage of net revenues declining from 53% in 2024 to 51% in 2025[163][170]. - Gross profit declined by 6% to $270.4 million, with gross margins decreasing from 53% to 50% due to lower pricing for glucagon and epinephrine products[1][6]. Expenses - Selling, distribution, and marketing expenses rose by 28% to $11,505,000, largely due to expanded marketing efforts for BAQSIMI® and Primatene MIST®[171]. - Selling, distribution, and marketing expenses rose by 23% to $33.6 million, while general and administrative expenses increased by 59% to $69.5 million, largely due to a litigation provision[1][8]. - General and administrative expenses surged by 166% to $39,467,000, primarily due to a litigation provision that increased expenses by $23.1 million[171]. - Research and development expenses increased by 6% to $22,354,000, including a $5.3 million upfront payment related to a licensing agreement with Anji[173][175]. - Research and development expenses increased by 12% to $62.5 million, primarily due to a $6.0 million licensing agreement with Anji and increased clinical trial costs[1][10]. Non-Operating and Tax Expenses - Non-operating expenses, net, improved significantly, decreasing from $(9,365,000) in 2024 to $(3,807,000) in 2025, primarily due to foreign currency fluctuations and mark-to-market adjustments[177]. - The income tax provision for the three months ended September 30, 2025, was $4,163,000, a decrease of 43% compared to $7,254,000 in 2024[178]. - The effective tax rate increased to 19% in 2025 from 15% in 2024, influenced by differences in pre-tax income positions[180]. - The income tax provision decreased by 24% to $18.0 million, with an effective tax rate increase to 20% from 16%[1][14]. Cash Flow and Working Capital - Working capital increased by $73.9 million to $434.2 million as of September 30, 2025, compared to $360.3 million at the end of 2024[1][16]. - Net cash provided by operating activities was $123.3 million, including net income of $73.7 million for the nine months ended September 30, 2025[1][18]. - Cash requirements are expected to increase significantly due to potential milestone payments of up to $575 million for BAQSIMI® and ongoing investments in manufacturing facilities[1][20]. - Net cash provided by operating activities was $184.4 million for the nine months ended September 30, 2024, including net income of $121.6 million[206]. Investment and Financing Activities - The company incurred $26.6 million in purchases of property, plant, and equipment for the nine months ended September 30, 2025, with $16.9 million in the United States[207]. - The company made $8.1 million in principal payments on long-term debt, primarily paying off a mortgage loan with East West Bank[210]. - Net cash used in investing activities was $89.3 million for the nine months ended September 30, 2024, primarily due to a payment of $129.0 million for the BAQSIMI® acquisition[208]. - Net cash used in financing activities was $47.1 million for the nine months ended September 30, 2024, primarily due to $43.5 million used to purchase treasury stock[210]. Market and Operational Insights - The company anticipates continued fluctuations in sales of glucagon and epinephrine due to competitive dynamics and market demand[167]. - The increase in accounts receivables was primarily due to increased sales, while inventories increased due to higher purchases of raw materials and components[206]. - The company reported no critical observations from inspections conducted by regulatory agencies at its manufacturing facilities during the nine months ended September 30, 2025[216]. - The company is exposed to market risk from changes in the market values of investments, interest rate changes, and foreign currency exchange rate changes[218]. - The company continues to assume distribution responsibilities for BAQSIMI® from Lilly to customers in the United States and certain other countries[206].

Financial Performance - For Q3 2025, the company reported income before income tax of $111 million, down from $328 million in Q3 2024, with pro forma pretax income for Q3 2024 at $255 million[104]. - Total operating revenue for Q3 2025 increased by $27 million, or 1%, to $3,766 million compared to pro forma results for Q3 2024[114]. - Total operating expenses rose by $185 million, or 5%, with aircraft fuel expenses accounting for $761 million and non-fuel operating expenses at $2,793 million[120]. - The company anticipates fourth quarter unit revenue to increase low single digits year-over-year, with capacity growth expected to be 2% to 3%[110]. - Total operating revenue increased by $362 million, or 4%, with passenger revenue rising by $263 million, or 3%[144]. - Adjusted net income for the nine months ended September 30, 2025, was $243 million, or $2.01 per share, compared to $500 million, or $3.90 per share, for the same period in 2024[194]. - Total operating expenses for the three months ended September 30, 2025, were $3,618 million, compared to $2,731 million for the same period in 2024[196]. Revenue Sources - Passenger revenue remained flat on a pro forma basis, with a 2% increase in yield offset by a 2% decrease in traffic, while Hawaiian passenger revenue improved due to strong demand in Hawaii[117]. - Cargo and other revenue increased by $24 million, or 20%, driven by additional aircraft in Hawaiian's cargo fleet and increased international cargo volumes[119]. - On a pro forma basis, loyalty program other revenue increased by $24 million, or 4%, due to higher commission revenue from bank card and third-party partners[148]. - Cargo and other revenue increased by $75 million, or 23%, driven by six additional A330-300F aircraft in the cargo fleet and increased international cargo volumes[149]. Operating Expenses - Total non-fuel operating expenses increased by $539 million, or 26%, compared to the previous year, driven by higher wages and increased variable costs[125]. - Wages and benefits increased by $127 million, or 12%, due to increased headcount and higher wage rates across multiple labor groups[127]. - Landing fees and rentals rose by $65 million, or 27%, attributed to increased terminal rents and higher volumes of departures[131]. - Total operating expenses increased by $371 million, or 4%, with significant increases in non-fuel operating expenses, which rose by $633 million, or 9%[150]. - Wages and benefits increased by $316 million, or 10%, driven by increased headcount and higher wage rates across multiple labor groups[157]. Profitability - Alaska Airlines reported a pretax profit of $187 million, a decrease of $164 million from the previous year, primarily due to increased non-fuel operating expenses[139]. - Hawaiian Airlines improved its pretax loss to $42 million, a $14 million improvement driven by $190 million in increased revenue from higher traffic[140]. - Hawaiian Airlines reported a pretax loss of $129 million, an improvement of $183 million compared to a pro forma loss of $312 million in the same period in 2024, driven by $417 million in increased revenue[170]. Cash Flow and Liquidity - Cash and marketable securities as of September 30, 2025, totaled $2.3 billion, with an $850 million bank line-of-credit facility available[172]. - Operating cash flows provided $1.1 billion during the first nine months of 2025, with significant payments made to employees for the 2024 Performance-Based Pay program[174]. - Cash used in financing activities was $490 million during the first nine months of 2025, with $540 million for share repurchases and $389 million for debt payments[178]. - The company's liquidity as a percentage of trailing twelve months' revenue decreased to 22% as of September 30, 2025, down from 28% as of December 31, 2024[181]. - Trailing twelve months' revenue increased by 21% to $14,141 million as of September 30, 2025, compared to $11,735 million as of December 31, 2024[181]. Debt and Capital Expenditures - The debt-to-capitalization ratio, including leases, increased to 60% as of September 30, 2025, up from 58% as of December 31, 2024[183]. - Capital expenditures for 2025 are expected to be between $1.4 billion and $1.6 billion, with cash used in investing activities amounting to $996 million in the first nine months of 2025[175]. - The company has firm orders to purchase 75 B737 aircraft and 8 B787 aircraft, with deliveries expected between 2025 and 2029[186]. Operational Metrics - Revenue passengers increased by 20.0% to 15,879,000 in Q3 2025 compared to Q3 2024, and by 26.9% to 44,272,000 for the nine months ended September 30, 2025[198]. - RPMs (revenue passenger miles) rose by 22.2% to 20,739 million in Q3 2025 and by 29.8% to 58,174 million for the nine months ended September 30, 2025[198]. - ASMs (available seat miles) grew by 23.2% to 24,447 million in Q3 2025 and by 30.5% to 69,724 million for the nine months ended September 30, 2025[198]. - Load factor decreased by 0.7 percentage points to 84.8% in Q3 2025 and by 0.5 percentage points to 83.4% for the nine months ended September 30, 2025[198]. - Departures increased by 18.4% to 144,000 in Q3 2025 and by 23.6% to 407,400 for the nine months ended September 30, 2025[198]. - The operating fleet expanded by 12 aircraft to 406 as of September 30, 2025[198]. Other Notable Events - The launch of the Atmos Rewards loyalty program in August 2025 did not materially impact Q3 financial results but is being monitored for future engagement[108]. - A cybersecurity incident identified on June 23, 2025, is not expected to have a material impact on the company's business or financial condition[102]. - Subsequent to Q3, the company obtained a single operating certificate from the FAA, marking a significant integration milestone[111]. - There were no material changes in critical accounting estimates during the three and nine months ended September 30, 2025[201].