Financial Performance - For the three months ended September 30, 2025, the total operating revenues were $179.6 million, with regulated energy contributing $146.4 million and unregulated energy contributing $40.7 million[153]. - For the nine months ended September 30, 2025, total operating revenues were $671.1 million, an increase from $572.2 million in the same period of 2024, representing a growth of 17.3%[156]. - Revenue for the quarter ended September 30, 2025, was $146.4 million, an increase of $15.8 million, or 12.1%, from $130.6 million in the same quarter of 2024[210]. - For the nine months ended September 30, 2025, revenue was $195.3 million, up $35.2 million from $160.1 million in the same period of 2024[234]. Adjusted Metrics - The Adjusted Gross Margin for the same period was $137.2 million, compared to a Gross Margin (GAAP) of $91.8 million[153]. - Adjusted net income for the nine months ended September 30, 2025, was $94.9 million, compared to $84.2 million for the same period in 2024, reflecting an increase of 12.7%[163]. - Adjusted gross margin for the quarter ended September 30, 2025, increased by $12.5 million, or 12.2%, compared to the same period in 2024, reaching $114.7 million[210]. - Adjusted gross margin for the nine months ended September 30, 2025, was $101.9 million, reflecting a $12.7 million increase compared to $89.2 million in the prior year[234]. Operating Income - Operating income for the third quarter of 2025 was $45.0 million, an increase of $4.1 million or 10% compared to the same period in 2024[164]. - Operating income for the nine months ended September 30, 2025, was $182.1 million, an increase of $20.8 million compared to the same period in 2024[169]. - Operating income for the nine months ended September 30, 2025, was $20.9 million, an increase of $2.2 million from $18.7 million in the same period of 2024[234]. Margins and Contributions - The total adjusted gross margin for the three months ended September 30, 2025, was $137.2 million, an increase of $15.2 million or 12.5% compared to the same period in 2024[166]. - The increase in adjusted gross margin in the third quarter of 2025 was driven by regulatory initiatives, infrastructure programs, and increased demand for CNG, RNG, and LNG services[164]. - Natural gas transmission service expansions contributed $11.7 million to adjusted gross margins for the nine months ended September 30, 2025[173]. - Contributions from regulated infrastructure programs added $3.9 million to adjusted gross margin in the third quarter of 2025[213]. Customer Growth and Consumption - The average number of residential customers served on the Delmarva Peninsula increased by approximately 4.3% for the three months ended September 30, 2025[208]. - Total customer growth for the three months ended September 30, 2025, was $1.4 million, with residential customer growth contributing $1.2 million and commercial and industrial customers contributing $0.2 million[209]. - Increased customer consumption due to colder weather conditions resulted in a $4.8 million increase in adjusted gross margin for the nine months ended September 30, 2025[205]. Capital Expenditures and Financing - Capital expenditures for the nine months ended September 30, 2025, totaled $335.6 million, with a forecasted range for total capital expenditures in 2025 between $425.0 million and $450.0 million[249][250]. - The company entered into a Note Purchase Agreement for the issuance of Senior Notes totaling $200.0 million, with an initial funding of $150.0 million in August 2025 and an additional $50.0 million in September 2025, at an average interest rate of 5.04%[261]. - The company issued 5.20% Senior Notes due in November 2029 in the aggregate principal amount of $100.0 million, with proceeds used to reduce short-term borrowings and fund capital expenditures[262]. Regulatory and Rate Changes - The Maryland natural gas distribution businesses filed for a rate increase of approximately $6.9 million, with a cumulative increase of $3.5 million approved[200][203]. - The Delaware natural gas division filed for a rate increase of approximately $12.1 million, with an annual revenue increase of $6.1 million approved in June 2025[202][203]. - The Florida Electric division's rate case resulted in a total revenue increase of approximately $8.6 million annually, with $2.4 million incremental adjusted gross margin generated for the three months ended September 30, 2025[204]. Sustainability and Growth Strategy - The company’s growth strategy includes investments in renewable natural gas-related projects and expansion of Marlin Gas Services' CNG transport business[145]. - The focus on sustainability is supported by the Board of Directors and includes environmental stewardship initiatives[147]. - The company is committed to enhancing sustainability disclosures, with the first sustainability micro-report launched in 2024[150]. Interest and Debt Management - Interest charges for the nine months ended September 30, 2025, were $54.1 million, an increase of $3.2 million from $50.9 million in 2024[171]. - The company is required to maintain a funded indebtedness ratio of no greater than 65% under its financial covenants, and as of September 30, 2025, it was in compliance with this covenant[259]. Inflation and Risk Management - Inflation impacts the costs of supply, labor, and services, prompting the company to seek rate increases from regulatory commissions to mitigate these effects[284]. - The Risk Management Committee evaluates credit risks related to counterparties in commodity derivative contracts before approval[283].

Company Operations - As of September 30, 2025, the company operated 628 standalone occupational health centers and 413 onsite health clinics across 47 states and the District of Columbia[130]. - The company’s onsite health clinics serve medium to large-sized employers, providing a range of occupational health services[135]. - The company’s telemedicine program serves 43 states and the District of Columbia, enhancing its service delivery capabilities[130]. - The company’s operating segments are aggregated into a single reportable segment based on similar services and economic characteristics[133]. Revenue and Growth - For the three months ended September 30, 2025, revenue from occupational health centers accounted for 92% of total revenue, while onsite health clinics contributed 6%[133]. - Revenue increased 17.0% to $572.8 million for the three months ended September 30, 2025, compared to $489.6 million for the same period in 2024, driven by an increase in patient visits and revenue per visit[156]. - Revenue increased by 13.2% to $1,624.3 million for the nine months ended September 30, 2025, compared to $1,435.2 million for the same period in 2024, driven by increased patient visits and revenue per visit[167]. Patient Visits and Revenue per Visit - Total patient visits rose 9.2% to 3,557,697 for the three months ended September 30, 2025, compared to 3,258,605 visits in the same period of 2024[157]. - Revenue per visit increased 4.2% to $147.31 for the three months ended September 30, 2025, compared to $141.42 for the same period in 2024[158]. - Total patient visits rose by 6.8% to 10,282,385 for the nine months ended September 30, 2025, compared to 9,628,515 visits for the same period in 2024[168]. - Revenue per visit increased by 4.7% to $146.72 for the nine months ended September 30, 2025, compared to $140.12 for the same period in 2024[169]. Acquisitions - The company acquired Nova Medical Centers for $265 million, financed through $102.1 million in new debt and $50 million from existing credit facilities[137]. - The acquisition of Pivot Onsite Innovations for $54.4 million expanded the company's onsite health clinics to over 400 locations[140]. - The company added over 240 onsite locations through acquisition in June 2025, contributing to revenue growth[156]. - The company completed the acquisition of Nova for $102.1 million and Pivot Onsite Innovations for $35.0 million, financed through a combination of debt and cash on hand[195]. Financial Performance - Net income attributable to the Company was $48.3 million for the three months ended September 30, 2025, compared to $44.3 million for the same period in 2024[151]. - Adjusted EBITDA for the three months ended September 30, 2025, was $118.9 million, or 20.8% of revenue, compared to $101.6 million, or 20.7% of revenue, in the same period of 2024[151]. - For the nine months ended September 30, 2025, adjusted net income attributable to the company was $139.8 million, or $1.09 per share, compared to $146.2 million, or $1.33 per share for the same period in 2024, indicating a decrease of 4.8% in adjusted net income[187]. Expenses - Cost of services was $405.5 million, or 70.8% of revenue, for the three months ended September 30, 2025, down from 71.7% in the same period of 2024[160]. - General and administrative expenses increased to $52.9 million, or 9.2% of revenue, for the three months ended September 30, 2025, compared to 7.6% in the same period of 2024[161]. - Interest expense for the three months ended September 30, 2025, was $28.7 million, up from $21.4 million in the same period of 2024, due to increased borrowings[164]. - Cost of services was $1,152.0 million, or 70.9% of revenue, for the nine months ended September 30, 2025, down from 71.6% of revenue in the same period in 2024[170]. - General and administrative expenses increased to $152.5 million, or 9.4% of revenue, for the nine months ended September 30, 2025, compared to 7.7% of revenue in the same period in 2024[171]. - Interest expense rose significantly to $82.4 million for the nine months ended September 30, 2025, compared to $21.3 million for the same period in 2024, due to new debt issuances[175]. Cash Flow and Capital Structure - Cash flows from operating activities for the nine months ended September 30, 2025, were $160.7 million, down from $181.0 million in 2024, primarily due to increased interest payments following debt recapitalization[191]. - Investing activities used $394.7 million in cash for the nine months ended September 30, 2025, compared to $54.6 million in 2024, with $333.3 million allocated for acquisitions, including Nova and Pivot Onsite Innovations[192]. - The company had $393.0 million of availability under its Revolving Credit Facility as of September 30, 2025, after accounting for $35.0 million of borrowings and $22.0 million of outstanding letters of credit[200]. - The company had a net working capital of $62.8 million at September 30, 2025, down from $130.0 million at December 31, 2024, primarily due to cash depletion from acquisitions[195]. Shareholder Returns - The company declared a cash dividend of $0.0625 per share on November 5, 2025, with a total of $24.0 million paid in dividends throughout 2025[208]. - The company authorized a share repurchase program to buy back up to $100 million of its outstanding common stock, set to expire on December 31, 2027[207]. Debt and Interest Rate Management - The company entered into derivative contracts to mitigate exposure to variable Term SOFR interest rates, limiting the rate to a fixed 3.829% on $300.0 million of principal outstanding[202]. - As of September 30, 2025, the company had outstanding borrowings of $945.3 million in term loans and $35.0 million in the Revolving Credit Facility, both subject to variable interest rates[215]. - The company entered into a derivative swap contract effective March 3, 2025, limiting the Term SOFR rate to a fixed rate of 3.829% on $300 million of principal outstanding under its term loan, applicable through February 29, 2028[216]. - A derivative collar contract was also established, capping the Term SOFR rate at 4.500% and setting a floor at 3.001% on $300 million of principal outstanding under the term loan, effective March 3, 2025[217]. - A 0.25% increase in market interest rates will increase the annual interest expense on the company's variable rate debt by $1.0 million, with an additional impact of $0.8 million due to the Term SOFR rate cap[218].

Irvine, Calif.--(BUSINESS WIRE)--November 6, 2025-- WM Technology, Inc. ("WM Technology" or the "Company") (Nasdaq: MAPS), a leading marketplace and technology solutions provider to the cannabis industry, today announced its financial results for the third quarter ended September 30, 2025. "Our third-quarter results reflect disciplined execution in a challenging market. While conditions across our core states remain pressured, we continue to focus on delivering value to our clients and strengthening our mar ...

Financial Performance - Total operating revenues for Q3 2025 reached $463.97 million, a 17% increase from $396.36 million in Q3 2024[15] - Product revenue increased to $357.61 million in Q3 2025, up 23% from $290.42 million in Q3 2024[15] - Operating income for Q3 2025 was $19.79 million, a significant decrease of 73% compared to $72.87 million in Q3 2024[15] - Net income attributable to Class A Common Stock holders was $5.27 million in Q3 2025, down 80% from $25.76 million in Q3 2024[15] - The overall financial performance shows a robust growth trajectory, with net income doubling year-over-year[26] - For the three months ended September 30, 2025, the company recorded net income of $74.2 million, compared to $35.0 million for the same period in 2024, representing a 112% increase[28] - The company reported a net income of $15.55 million for the three months ended September 30, 2025, down 81% from $83.65 million in the prior year[154] Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2025, were $494.03 million, slightly up from $493.36 million in the same period of 2024[21] - Cash at the end of the period for September 30, 2025, was $7,737,000, a decrease of 62.2% from $20,438,000 at the end of September 30, 2024[23] - The company reported a net cash used in investing activities of $562.93 million for the nine months ended September 30, 2025[21] - Total liquidity as of September 30, 2025, was $883.5 million, including cash and cash equivalents of $7.7 million[189] - Net cash provided by operating activities increased by $0.7 million to $494.0 million for the nine months ended September 30, 2025, compared to $493.4 million for the same period in 2024[198] - Net cash provided by financing activities was $73.0 million for the nine months ended September 30, 2025, primarily from long-term debt issuance, compared to a net cash outflow of $411.5 million for the same period in 2024[200] Assets and Liabilities - Total assets increased to $7.20 billion as of September 30, 2025, compared to $6.81 billion at the end of 2024[19] - Long-term debt rose to $3.96 billion as of September 30, 2025, up from $3.36 billion at the end of 2024[19] - The company’s accumulated deficit decreased to $1.99 billion as of September 30, 2025, from $2.98 billion at the end of 2024[19] - The balance at September 30, 2025, was $4,400,882 million, with a notable change in various asset categories[26] - The fair value of consolidated debt as of September 30, 2025, was $4.19 billion, up from $3.52 billion as of December 31, 2024[80] Equity and Dividends - Cash dividends paid to Class A Common Stock amounted to $133,868,000, with a dividend rate of $2.25 per share[27] - The Company declared a cash dividend of $0.78 per share on October 15, 2025, payable to stockholders of record as of October 27, 2025[136] - The Company made cash dividend payments of $373.8 million to holders of Class A Common Stock and Common Units during the nine months ended September 30, 2025[201] Acquisitions and Investments - The company completed the acquisition of Durango, resulting in a total consideration of $423,200,000[27] - The Company completed the Barilla Draw Acquisition for $175.5 million, which included natural gas and crude gathering pipelines valued at $165.0 million and intangible right-of-way assets of $10.5 million[41] - The Durango Acquisition was consummated for an adjusted purchase price of approximately $785.7 million, with a potential earn-out of up to $75.0 million contingent on the completion of the Kings Landing Project[42] Segment Performance - Midstream Logistics segment generated $458.6 million in revenue for Q3 2025, a 17.1% increase from $391.3 million in Q3 2024[125][126] - Total segment operating revenue for Q3 2025 was $463.9 million, compared to $396.4 million in Q3 2024, reflecting a growth of 17%[125][126] - Segment Adjusted EBITDA for Midstream Logistics was $151.4 million in Q3 2025, up from $173.6 million in Q3 2024, indicating a decrease of 12.8%[125][126] Operating Expenses - General and administrative expenses accounted for over 78% of the Company's total expenses, amounting to $30.1 million in Q3 2025[122][125] - Operating expenses increased by $20.3 million, or 36%, to $76.1 million, with significant contributions from Durango's operations and the Kings Landing plant start-up[160] - Total accrued expenses as of September 30, 2025, amounted to $228.4 million, an increase from $186.7 million as of December 31, 2024[81] Future Outlook - Future outlook remains positive, with expectations for continued revenue growth driven by market expansion strategies[26] - New product developments and technological advancements are anticipated to enhance competitive positioning in the market[26] - Strategic acquisitions are being considered to bolster market presence and operational capabilities[26] Tax and Regulatory Matters - The effective tax rate for the three months ended September 30, 2025, was 6.66%, lower than the 8.99% rate in 2024, primarily due to tax impacts related to noncontrolling interests[109] - The company plans to adopt ASU 2023-09 in its Annual Report for the year ended December 31, 2025, which will enhance income tax disclosures[37] Share Repurchase and Stock Activity - The Company repurchased 2.4 million shares for a total cost of $100.0 million in Q3 2025[87] - A share repurchase program was approved, allowing up to $500 million in total repurchases of Class A Common Stock, with $321.7 million available as of September 30, 2025[203][204]

Financial Performance - Net sales for the three months ended September 30, 2025, increased to $354.8 million, up 60.5% from $220.9 million in the same period of 2024[13] - Gross profit for the three months ended September 30, 2025, was $41.4 million, compared to $37.1 million in 2024, reflecting a gross margin of 11.7%[13] - The company reported a net loss of $19.1 million for the three months ended September 30, 2025, compared to a net loss of $14.3 million in the same period of 2024[14] - Net loss for the nine months ended September 30, 2025, was $67.884 million, compared to a net loss of $55.691 million for the same period in 2024, representing an increase in losses of approximately 21.5%[18] - For the three months ended September 30, 2025, the company recognized $354.8 million in net sales, a 60.5% increase from $220.9 million in the same period of 2024[69] - Revenue from coffee and tea for the three months ended September 30, 2025, was $186.4 million, up 61.5% from $115.5 million in 2024[69] - For the nine months ended September 30, 2025, net sales totaled $849.480 million, compared to $621.749 million for the same period in 2024, marking an increase of about 36.5%[157][158] Assets and Liabilities - Total current assets increased to $393.6 million as of September 30, 2025, from $333.6 million at December 31, 2024, representing an increase of 17.9%[12] - Total liabilities rose to $893.0 million as of September 30, 2025, compared to $730.4 million at December 31, 2024, indicating an increase of 22.2%[12] - The company’s total assets reached $1.18 billion as of September 30, 2025, compared to $1.10 billion at December 31, 2024[12] - The company’s total shareholders' equity decreased to $11.4 million as of September 30, 2025, from $97.5 million at December 31, 2024[12] - Total debt increased to $538.13 million as of September 30, 2025, up from $447.73 million on December 31, 2024, marking a 20.2% increase[82] Cash Flow and Expenses - Cash and cash equivalents at the end of the period on September 30, 2025, were $33.971 million, up from $22.359 million at the end of September 30, 2024, indicating a year-over-year increase of approximately 52.5%[18] - Cash flows from operating activities resulted in a net cash used of $55.703 million for the nine months ended September 30, 2025, compared to $16.023 million for the same period in 2024, indicating a significant increase in cash outflow[18] - Selling, general and administrative expenses were $47.0 million for the three months ended September 30, 2025, slightly up from $46.1 million in 2024[13] - Interest expense for the three months ended September 30, 2025, was $14.0 million, significantly higher than $6.9 million in the same period of 2024[13] - The company incurred interest expenses of $39.741 million for the nine months ended September 30, 2025, compared to $21.921 million for the same period in 2024, representing an increase of approximately 81%[157][158] Equity and Investments - The company recognized a $2.3 million gain from the de-consolidation of Rwanda Trading Company during the three months ended June 30, 2025[23] - The company holds a 49.9% equity method investment in a joint venture with a balance of $7.5 million as of September 30, 2025[44] - The company had an equity investment with a carrying value of approximately $1.0 million as of September 30, 2025, with no adjustments made to its carrying value[139] Legal Matters - The company is currently involved in legal proceedings with Dairy Farmers of America, Inc., alleging trade secret misappropriation, which may impact its financial position[167][168] - The company intends to vigorously defend against the legal claims and has not yet determined the potential financial impact of the lawsuit[168][169] Future Obligations and Financing - Future purchase obligations amount to $218.5 million as of September 30, 2025, primarily for inventory purchases over the next 12 months[170] - The company issued $30.0 million in 5.00% convertible senior notes due 2031 on November 4, 2025, with an initial conversion price of $5.25[176][177] - The company modified its Credit Agreement on November 4, 2025, extending the Covenant Relief Period until October 1, 2026[180] Segment Performance - Segment Adjusted EBITDA for the Beverage Solutions segment was $20.422 million for Q3 2025, up from $11.752 million in Q3 2024, indicating a year-over-year increase of about 74%[159][161] - Employee-related costs for the Beverage Solutions segment were $42.326 million for the nine months ended September 30, 2025, up from $35.017 million in the same period of 2024, reflecting an increase of about 20%[163][165] Inventory and Cost of Sales - Total inventories increased to $212.97 million as of September 30, 2025, up from $163.32 million on December 31, 2024, representing a 30.3% increase[70] - The company reported total costs of sales of $509.311 million for the nine months ended September 30, 2025, compared to $369.282 million for the same period in 2024, indicating an increase of approximately 38%[163][165]

Financial Performance - ONAPGO generated net product sales of $6.8 million in its first full quarter following the U.S. commercial launch in April 2025, with over 1,300 enrollment forms submitted by more than 450 prescribers[216]. - Collaboration revenue from ZURZUVAE was $20.2 million in Q3 2025, representing approximately two months of collaboration revenue since the Sage Acquisition, with U.S. sales increasing approximately 150% compared to the same period in 2024[216]. - Net sales of Qelbree increased 31% to $81.4 million in Q3 2025, with total IQVIA prescriptions reaching 238,770, a 23% increase year-over-year[216]. - Net sales of GOCOVRI increased 15% to $40.8 million in Q3 2025, driven by growth in prescriptions and the number of prescribers[216]. - Total revenues for Q3 2025 were $192.1 million, a 9% increase from $175.7 million in Q3 2024, while total revenues for the nine months ended September 30, 2025, were $507.4 million, up 4% from $487.7 million in the same period of 2024[235]. - Net product sales decreased by 1% to $168.5 million in Q3 2025 compared to $170.3 million in Q3 2024, and also decreased by 1% to $468.5 million for the nine months ended September 30, 2025, from $471.3 million in the prior year[236]. - The decline in net product sales was primarily due to lower sales of APOKYN (down 48% in Q3 2025) and Oxtellar XR (down 60% in Q3 2025) due to generic erosion, partially offset by increases in sales from Qelbree and GOCOVRI[236]. Acquisitions and Collaborations - The Company completed the acquisition of Sage Therapeutics, Inc. on July 31, 2025, integrating its established commercial product ZURZUVAE into its portfolio[203]. - Collaboration revenue (ZURZUVAE) was $20.2 million for the three and nine months ended September 30, 2025, attributed to the Sage Acquisition in July 2025[248]. - The company has contingent consideration milestones related to the Sage Acquisition, with potential payments totaling up to $234 million based on future sales of ZURZUVAE[272]. - The company incurred $70.9 million in acquisition-related costs associated with the Sage Acquisition in July 2025, contributing to the decline in earnings[266]. Product Development - SPN-817, a novel anticonvulsant for epilepsy, is currently in a Phase 2b study with a targeted enrollment of approximately 258 adult patients[213]. - SPN-820, a novel treatment for depression, plans to initiate a follow-on Phase 2b trial in approximately 200 adults with major depressive disorder by the end of 2025[214]. - SPN-443, a novel stimulant for ADHD, completed a Phase 1 study in 2024 and is expected to initiate a Phase 1 single-ascending/multiple ascending dose study in 2026[215]. - The FDA approved an expanded label update for Qelbree in January 2025, including new data on pharmacodynamics and use in breastfeeding mothers[205]. Inventory and Supply Chain - The Company is facing supply constraints for ONAPGO due to stronger than expected demand, prioritizing care for existing patients while working to build adequate inventory[216]. - The accrued product returns balance decreased to $43.3 million as of September 30, 2025, from $57.4 million as of September 30, 2024, primarily due to a $16.3 million estimated provision for product returns related to prior year sales[244]. - The accrued product rebates balance increased to $141.2 million as of September 30, 2025, from $111.7 million as of September 30, 2024, primarily due to the timing of payments associated with government programs[245]. Expenses and Financial Management - Selling and marketing expenses increased by 42% to $54.3 million for the three months ended September 30, 2025, and by 19% to $205.5 million for the nine months ended September 30, 2025, primarily due to higher professional and consulting expenses[252]. - General and administrative expenses surged by 565% to $15.4 million for the three months ended September 30, 2025, and by 127% to $157.7 million for the nine months ended September 30, 2025, mainly due to acquisition-related costs from the Sage acquisition[253]. - Research and Development (R&D) expenses were $29.4 million for the three months ended September 30, 2025, compared to $29.0 million in 2024, with a total of $78.4 million for the nine months ended September 30, 2025, down from $80.1 million in 2024[251]. - The provision for product rebates increased to $295.1 million for the nine months ended September 30, 2025, from $293.6 million in the same period of 2024, primarily due to higher Qelbree sales[247]. Cash Flow and Liquidity - Cash and cash equivalents increased to $151.4 million as of September 30, 2025, from $69.3 million as of December 31, 2024, representing a 118% increase[261]. - Total cash, cash equivalents, and unrestricted marketable securities amounted to $281.2 million as of September 30, 2025, which the company believes will be sufficient to meet cash requirements over the next 12 months[262]. - Net cash provided by operating activities decreased to $27.5 million in 2025 from $127.5 million in 2024, primarily due to a net loss of $34.4 million compared to net earnings of $58.5 million in the prior year[266]. - Net cash provided by investing activities was $55.4 million in 2025, a significant improvement from net cash used of $177.2 million in 2024, primarily due to higher inflows from marketable securities[267]. - Cash and cash equivalents at the end of the period increased to $152.8 million in 2025 from $31.7 million in 2024, reflecting a net change of $126.9 million[265]. Risk Management and External Factors - The company does not hedge foreign currency exchange rate risk, and all liabilities were substantially denominated in U.S. dollars as of September 30, 2025[281]. - Inflation has not significantly impacted the company's consolidated results, although there are expectations of variability in labor and vendor service costs due to uncontrollable factors[282].

Revenue Performance - For the three months ended September 30, 2025, the company reported net revenue of $98.6 million, a 7.0% increase from $92.3 million in the same period of 2024[207]. - For the nine months ended September 30, 2025, net revenue reached $291.6 million, up 8.9% from $269.2 million in the prior year[207]. - Total net revenues for the three months ended September 30, 2025 increased by $6.3 million, or 7%, to $98.6 million compared to the same period in 2024, driven by growth in Tucows Domains, Wavelo, and Ting[254]. - For the nine months ended September 30, 2025, total net revenues increased by $22.4 million, or 8%, to $291.6 million compared to the same period in 2024, with significant contributions from Tucows Domains, Wavelo, and Ting[255]. - Ting generated $17.0 million in net revenue during the three months ended September 30, 2025, up $1.7 million, or 11%, driven by subscriber growth on the Fiber network[258]. - Wavelo Platform Services net revenues for the three months ended September 30, 2025 increased by $1.8 million, or 18%, to $11.9 million, supported by incremental revenues from existing and new customers[261]. - Wholesale domain services net revenue increased by $2.0 million, or 4%, to $51.9 million during the three months ended September 30, 2025, due to passthrough price increases and recognition of previously deferred revenue[265]. - Value-added services net revenue increased by $0.9 million, or 17%, to $6.1 million during the three months ended September 30, 2025, driven by strong expiry auction sales[268]. Subscriber and Infrastructure Metrics - As of September 30, 2025, Ting Internet had 52,000 active subscribers, an increase from 50,000 active subscribers as of September 30, 2024[209]. - Ting Internet had access to 126,000 owned infrastructure serviceable addresses as of September 30, 2025, down from 132,000 in the previous year[209]. - Contract liabilities increased by $1.9 million to $158.7 million as of September 30, 2025, primarily due to Ting construction mobilization in a new partner market[256]. - As of September 30, 2025, EchoStar accounted for 12% of total net revenues and represented 51% of total accounts receivable[257]. - Ting Internet had access to 126,000 owned infrastructure serviceable addresses and 52,000 active subscribers as of September 30, 2025, compared to 132,000 and 50,000 respectively in the prior year[260]. Cost and Expense Management - Total cost of revenues for the three months ended September 30, 2025, was $74.4 million, reflecting a $4.3 million increase from $70.1 million in the same period in 2024[285]. - Cost of revenues for Ting's Fiber Internet Services increased by $2.2 million, or 51%, to $6.5 million for the three months ended September 30, 2025, compared to the same period in 2024[288]. - Total cost of revenues for the nine months ended September 30, 2025, increased by $13.9 million, or 7%, to $221.8 million from $207.9 million in the same period in 2024[286]. - Costs for Wholesale domain services for the nine months ended September 30, 2025 increased by $5.6 million, or 5%, to $123.4 million compared to $117.8 million for the same period in 2024[295]. - Costs for retail domain services for the nine months ended September 30, 2025 increased by $0.6 million, or 5%, to $13.0 million compared to $12.4 million for the same period in 2024[299]. - Cost of revenues from Mobile Services and Eliminations for the nine months ended September 30, 2025 increased by $4.2 million or 48%, to $13.0 million compared to $8.8 million for the same period in 2024[302]. - Sales and marketing expenses for the nine months ended September 30, 2025 decreased by $13.7 million, or 28%, to $34.8 million compared to $48.5 million for the same period in 2024[307]. - General and administrative expenses for the nine months ended September 30, 2025 decreased by $1.9 million or 6%, to $28.6 million compared to $30.5 million for the same period in 2024[314]. - Technical operations and development expenses for the nine months ended September 30, 2025 decreased by $0.7 million, or 5%, to $13.4 million compared to $14.1 million for the same period in 2024[311]. - Network expenses for the nine months ended September 30, 2025 decreased by $2.4 million or 5%, to $49.7 million compared to $52.1 million for the same period in 2024[304]. Strategic Initiatives and Future Outlook - The company is reviewing strategic alternatives for the Ting business due to ongoing capital needs[214]. - The company continues to invest in fiber to the home (FTTH) deployments, reflecting ongoing efforts to build networks in areas with strong demand, despite the risks associated with upfront investments[230]. - Wavelo's software solutions are being utilized by EchoStar and Ting to enhance subscriber growth and operational efficiency[216]. - The company continues to evaluate the potential impact of the One Big Beautiful Bill Act on future periods and related disclosures[325]. - The Company plans to fund cash requirements for Tucows businesses excluding Ting solely through operating income for Fiscal 2025[352]. - The company has commenced a process to review strategic alternatives for the Ting business due to ongoing capital needs and potential inability to meet financial obligations[350]. Financial Position and Risks - As of September 30, 2025, cash and cash equivalents decreased by $2.8 million, primarily due to $3.2 million used in operating activities and $12.8 million for additions to property and equipment[332]. - As of September 30, 2025, Ting had $33.7 million in unrestricted cash and cash equivalents, down from $45.4 million as of December 31, 2024[349]. - The Company had $40.1 million in outstanding foreign exchange forward contracts to trade U.S. dollars for Canadian dollars[358]. - A sensitivity analysis indicated that a hypothetical 10% adverse movement in foreign currency exchange rates would decrease net income by approximately $4.0 million for the nine months ended September 30, 2025[360]. - The company evaluates credit risk concentrations primarily related to cash equivalents, marketable securities, foreign exchange contracts, and accounts receivable[361]. - Interest rate risk exposure is primarily related to the 2023 Credit Agreement[362]. - The company will continue to monitor foreign exchange exposure risks and may take additional actions to hedge or mitigate these risks in the future[360].

Table of Contents 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 001-35077 ___________________________ ...

Table of Contents 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 001-35077 ___________________________ ...

Table of Contents 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 9700 W. Higgins Road, Suite 800 Rosemont, Illinois 60018 (Ad ...