Financial Performance - Total revenue increased by EUR85.6 million, or 20.3%, to EUR507.9 million for the financial year ended March 31, 2025, from EUR422.3 million for the financial year ended March 31, 2024[241]. - Operating profit increased by EUR36.8 million, or 37.5%, to EUR134.7 million for the financial year ended March 31, 2025, from EUR97.9 million for the financial year ended March 31, 2024[240]. - Profit for the period increased by EUR72.6 million, or 347.0%, to EUR93.6 million for the financial year ended March 31, 2025, from EUR20.9 million for the financial year ended March 31, 2024[253]. - Adjusted EBITDA increased by EUR53.7 million to EUR202.4 million for the financial year ended March 31, 2025, compared to EUR148.7 million for 2024, with an adjusted EBITDA margin of 39.8%[260]. - Profit attributable to owners of the parent rose to EUR84.3 million for the financial year ended March 31, 2025, up from EUR14.0 million in 2024, reflecting a 504.3% increase[262]. - Adjusted net income (Group Share) improved by EUR28.0 million, or 104.2%, to EUR54.9 million for the financial year ended March 31, 2025, from EUR26.9 million in 2024[262]. Revenue Segments - TFS Sales in Store (SiS) increased by EUR4.5 billion, or 23.4%, to EUR24.1 billion for the financial year ended March 31, 2025, from EUR19.6 billion for the financial year ended March 31, 2024[236]. - The revenue of the TFS segment increased by EUR72.8 million, or 23.3%, to EUR384.5 million for the financial year ended March 31, 2025, from EUR311.7 million for the financial year ended March 31, 2024[242]. - The revenue of the Payments segment increased by EUR10.2 million, or 12.2%, to EUR93.2 million for the financial year ended March 31, 2025, from EUR83.0 million for the financial year ended March 31, 2024[243]. - Payments SiS increased by EUR0.3 billion, or 4.3%, to EUR6.6 billion for the financial year ended March 31, 2025, from EUR6.3 billion for the financial year ended March 31, 2024[237]. - The revenue of the PPS segment increased by EUR2.7 million, or 9.7%, to EUR30.2 million for the financial year ended March 31, 2025, from EUR27.5 million for the financial year ended March 31, 2024[245]. - Post-Purchase Solutions SiS decreased by EUR0.2 billion, or 9.0%, to EUR2.2 billion for the financial year ended March 31, 2025, from EUR2.4 billion for the financial year ended March 31, 2024[238]. Operating Expenses - Operating expenses increased by EUR48.8 million, or 15.0%, to EUR373.2 million for the financial year ended March 31, 2025, from EUR324.4 million for the financial year ended March 31, 2024[247]. - Total adjusted operating expenses increased by EUR31.9 million, or 11.7%, to EUR305.5 million for the financial year ended March 31, 2025, from EUR273.6 million in 2024[267]. - Variable adjusted operating expenses rose by EUR11.9 million, or 11.9%, to EUR112.3 million for the financial year ended March 31, 2025, driven by increased volumes[268]. - Fixed adjusted operating expenses increased by EUR19.9 million, or 11.5%, to EUR193.2 million for the financial year ended March 31, 2025, primarily due to investments in strategic areas and inflation effects[269]. Cash Flow and Debt - Net cash from operating activities increased to EUR160.9 million for the financial year ended March 31, 2025, up from EUR120.1 million in 2024[282]. - Cash and cash equivalents amounted to EUR123.8 million as of March 31, 2025, with additional available liquidity of EUR101.0 million from credit facilities[278]. - As of March 31, 2025, adjusted net debt was EUR487.7 million, improved from EUR524.3 million in 2024, with net debt at EUR444.5 million[273]. - Global Blue recorded a net working capital inflow of EUR1.2 million for the financial year ended March 31, 2025, reflecting improved cash management[297]. - The company drew down EUR610 million from the Term Loan Facility in December 2023 to fully repay its previous loans[302]. - Global Blue's capital expenditure increased by EUR11.5 million or 29.0% to EUR50.9 million for the financial year ended March 31, 2025[300]. Tax and Regulatory Matters - The adjusted effective tax rate decreased to 33.9% for the financial year ended March 31, 2025, down from 42.6% in 2024, driven by improved interest tax efficiency[265]. - Global Blue may face a Swiss federal withholding tax of 35% on distributions unless made from confirmed capital contribution reserves, which may limit its ability to make dividend distributions[172]. - The company is subject to potential adverse U.S. federal income tax consequences if classified as a passive foreign investment company (PFIC), although it does not expect to be classified as such in the foreseeable future[160]. - Global Blue's ability to repurchase shares for capital reduction may also be subject to 35% Swiss withholding tax, impacting its capital management strategies[174]. Market and Competitive Position - The number of international travelers to Global Blue Tax-Free destinations grew by 9% compared to the financial year ended March 31, 2024[330]. - Average spend-per-traveler increased by approximately 23%, driven by luxury brands' pricing strategies and a skew towards affluent shoppers[331]. - Global Blue is well-positioned to capitalize on the increasing demand for digital and mobile payment solutions[334]. - The company has more than 50 new products in the pipeline aimed at enhancing traveler and merchant experiences[327]. - Global Blue has been granted patents for contactless payments and cross-border currency conversion in several countries, enhancing its competitive position[336]. Shareholder and Governance Matters - Silver Lake beneficially owns approximately 60.9% of Global Blue's ordinary shares, allowing it to exert significant control over the company[163]. - Global Blue is classified as an "emerging growth company," which allows it to take advantage of reduced disclosure and governance requirements, potentially making its shares less attractive to investors[171]. - The company has outstanding Global Blue Warrants to purchase an aggregate of 30,735,950 ordinary shares at a price of $11.50 per share, which may lead to dilution for existing shareholders[175]. - The Company’s ordinary shares rank junior to Series A and Series B Preferred Shares regarding dividends and liquidation payments[177]. - In the event of liquidation, Series A Preferred Shares holders receive the higher of $10.00 per share or the conversion value, while Series B holders receive the higher of $8.50 per share or the conversion value[178]. Risks and Volatility - The trading price of the Company's securities may be volatile and subject to fluctuations due to various market factors[180]. - Factors affecting the trading price include market expectations, operating results, competition, and changes in financial estimates by analysts[181]. - Reports from analysts that differ from actual results could adversely affect the price and trading volume of the Company's ordinary shares[183]. - Global Blue's stock price may experience significant volatility due to various external factors, including economic conditions and negative media coverage[162]. - The Articles of Association may limit the availability of attractive takeover proposals, requiring majority approval for certain transactions[187]. Internal Controls - Effective internal controls are necessary for reliable financial reporting; failure to maintain them could negatively impact the Company's market price[188]. - Undetected material weaknesses in internal controls could lead to financial statement restatements and additional remediation costs[190].

Revenue and Growth - Annual Recurring Revenue (ARR) reached $4.4 billion as of April 30, 2025, representing a year-over-year growth of 22% compared to $3.6 billion in 2024, which had a growth of 33%[166]. - Total revenue increased by $182.4 million, or 20%, for the three months ended April 30, 2025, compared to the same period in 2024, reaching $1,103.4 million[191]. - Subscription revenue accounted for 95% of total revenue for both the three months ended April 30, 2025, and April 30, 2024, with a 20% increase to $1,050.8 million[192]. - The dollar-based net retention rate was consistent with expectations as of April 30, 2025, reflecting customer renewals, expansion, contraction, and churn[168]. - The company expects seasonal patterns in net new ARR generation, typically greater in the second half of the year, especially in Q4[232]. Expenses and Profitability - The company incurred approximately $36.0 million to $53.0 million in charges related to a strategic plan, with $6.6 million recognized in the first quarter of fiscal 2026[151]. - Total cost of revenue increased by $64.1 million, or 29%, for the three months ended April 30, 2025, totaling $289.1 million[194]. - Gross profit for the three months ended April 30, 2025, was $814.3 million, a 17% increase from $696.0 million in the same period of 2024[196]. - Research and development expenses rose by $98.9 million, or 42%, for the three months ended April 30, 2025, totaling $334.1 million[199]. - Sales and marketing expenses increased by $89.5 million, or 26%, for the three months ended April 30, 2025, reaching $439.6 million[198]. - General and administrative expenses increased by $61.5 million, or 59%, for the three months ended April 30, 2025[183]. - Subscription gross margin slightly decreased by 1 percentage point to 77% for the three months ended April 30, 2025[196]. - Professional services gross margin decreased by 17 percentage points to 11% for the three months ended April 30, 2025[197]. - Net income (loss) attributable to CrowdStrike was $(110.2) million for the three months ended April 30, 2025, compared to $42.8 million in the same period of 2024, representing a decrease of $153.0 million[188]. Cash Flow and Financial Position - Net cash provided by operating activities was $384.1 million for the three months ended April 30, 2025, compared to $383.2 million in the same period of 2024[211]. - The company had $4.6 billion in cash and cash equivalents as of April 30, 2025, along with $750 million available under its Revolving Facility[206]. - Deferred revenue as of April 30, 2025, was $3.8 billion, with $2.7 billion expected to be recognized as revenue in the next 12 months[209]. - The company has non-cancellable purchase commitments totaling $2.7 billion as of April 30, 2025, with remaining terms in excess of 12 months[223]. - The company reported a decrease in other income (expense), net by $11.6 million, or 151%, primarily due to a decrease in gains on strategic investments[203]. Strategic Initiatives and Market Position - The company plans to continue investing significantly in research and development to enhance technology platform and product functionality[161]. - Following the July 19 Incident, the company has experienced delays in creating sales opportunities and longer sales cycles, which are expected to continue affecting key metrics and results of operations[162]. - The company’s go-to-market strategy includes a low friction land-and-expand model, allowing customers to easily add additional cloud modules after initial deployment[154]. - The flexibility and scalability of the Falcon platform enable the company to target organizations of all sizes, presenting significant growth opportunities[155]. - As of April 30, 2025, the company had a backlog of approximately $3.0 billion, which is not recorded in deferred revenue[230]. Employee and Organizational Information - The company had 10,363 full-time employees as of April 30, 2025, with no labor union representation in the U.S.[234].

Financial Performance - As of March 31, 2025, the company reported a net loss of $738,555, which included interest expense of $285,197 and general and administrative expenses of $270,256 [176]. - For the three months ended March 31, 2024, the company had a net loss of $375,307, driven by operating expenses of $603,471 and interest income of $342,667 [177]. - The company generates non-operating income from interest on proceeds held in a trust account, with interest income of $32,099 reported for the three months ended March 31, 2025 [175]. Initial Public Offering (IPO) - The company completed its IPO on December 9, 2021, raising gross proceeds of $100,000,000 from the sale of 10,000,000 units at $10.00 per unit [178]. - The company raised a total of $15,000,000 from the issuance of 1,500,000 units at a price of $10.00 per unit during the IPO [179]. - Offering costs for the IPO and the exercise of the underwriters' Over-allotment Option amounted to $6,887,896, including $2,300,000 in underwriting fees [180]. Business Combination and Merger Agreement - The company has extended the deadline to complete its initial business combination to June 9, 2025, having done so six times under its amended certificate of incorporation [164]. - The company entered into a Merger Agreement on January 30, 2024, with Alps Global Holding Pubco, which will result in Alps Holdco becoming a wholly-owned subsidiary of PubCo [165]. - The company expects to continue with the transactions outlined in the Merger Agreement despite the delisting of its securities [174]. Delisting and Compliance - The company received a delisting notice from Nasdaq on December 10, 2024, due to non-compliance with the requirement to complete a business combination within 36 months of its IPO [172]. - Following the delisting, the company's securities have been quoted on the OTC Pink market since December 17, 2024 [173]. Trust Account and Cash Management - As of March 31, 2025, cash held in the Trust Account was $3,561,690, with interest income of $32,099 for the three months ended March 31, 2025 [186]. - The company intends to use substantially all funds in the Trust Account to complete its business combination [187]. - The company had cash held outside the Trust Account amounting to $3,468 as of March 31, 2025, intended for evaluating target businesses [188]. Debt and Financing - As of March 31, 2025, the company had borrowed a total of $3,844,923 under various promissory notes, which includes $16,570 in additional interest expense [206]. - The company entered into multiple promissory notes with Public Gold Marketing Sdn Bhd, totaling $2,750,000 for working capital and extension fees, all repayable upon consummation of an initial business combination [190][191][192][193][194][196][197][198][199][201][202][203]. - The Company recorded a gain on modification of terms of promissory notes and advances from affiliates amounting to $880,656 [206]. Related Party Transactions - As of March 31, 2025, the aggregate principal amount owed to related parties in connection with promissory notes was $4,507,595, reflecting an increase from $4,445,458 as of December 31, 2024 [219]. - The net amount of the convertible notes related to the affiliate was $334,885, included in the consolidated balance sheet as of March 31, 2025 [209]. Going Concern and Future Capital Needs - The Company has until June 9, 2025, to complete the initial business combination, with substantial doubt raised about its ability to continue as a going concern if not completed [212]. - The Company may need to raise additional capital through loans or investments if the initial business combination is not consummated [210]. - The Company intends to complete a business combination before the mandatory liquidation date to avoid dissolution [212]. Accounting and Compliance - The Company is evaluating the impact of recent accounting pronouncements, including ASU 2023-09, which requires expanded disclosures of income taxes paid [228].

Financial Performance - As of March 31, 2025, the company reported a net loss of $738,555, which included interest expense of $285,197 and general and administrative expenses of $270,256[176] - For the three months ended March 31, 2024, the company had a net loss of $375,307, driven by operating expenses of $603,471 and interest expense of $33,395[177] - The company generated non-operating income of $32,099 from interest on cash held in the Trust Account for the three months ended March 31, 2025[176] IPO and Fundraising - The company completed its IPO on December 9, 2021, raising gross proceeds of $100,000,000 from the sale of 10,000,000 units at $10.00 per unit[178] - The company raised a total of $15,000,000 from the issuance of 1,500,000 units at a price of $10.00 per unit during the IPO[179] - Offering costs for the IPO and the exercise of the underwriters' Over-allotment Option amounted to $6,887,896, including $2,300,000 in underwriting fees[180] - The company has raised an aggregate of $3,479,911 from PIPE Investors at a purchase price of $10.00 per share, excluding a terminated $40 million subscription[167] Business Combination and Compliance - The company has extended the deadline to complete its initial business combination to June 9, 2025, having done so six times under its amended certificate of incorporation[164] - The company entered into a Merger Agreement on January 30, 2024, with Alps Global Holding Pubco, which will result in Alps Holdco becoming a wholly-owned subsidiary of PubCo[165] - The company received a delisting notice from Nasdaq on December 10, 2024, due to non-compliance with the requirement to complete a business combination within 36 months of its IPO[172] - Following the delisting, the company's securities have been quoted on the OTC Pink market since December 17, 2024[173] - The Company has until June 9, 2025, to complete the initial business combination, with substantial doubt raised about its ability to continue as a going concern if not completed[212] Debt and Liabilities - As of March 31, 2025, the company had borrowed a total of $3,844,923 under various promissory notes, which includes $16,570 in additional interest expense[206] - The company entered into multiple promissory notes with Public Gold Marketing Sdn Bhd, totaling $2,500,000 for working capital and extension fees, all repayable upon consummation of an initial business combination[190][191][192][193][194][196][197][198][199][201][202][203] - The company recorded a gain on modification of terms of promissory notes and advances from affiliates amounting to $880,656[206] - As of March 31, 2025, the company had $334,885 in convertible debt and $390,000 in advances reflected in its consolidated balance sheets[208] - The net amount of the convertible notes related to parties, after accounting for the debt discount, was $4,179,808 as of March 31, 2025[219] - The aggregate principal amount owed to related parties in connection with promissory notes was $4,507,595, reflecting an increase from $4,445,458 as of December 31, 2024[219] Cash Management - As of March 31, 2025, cash held in the Trust Account was $3,561,690, with interest income of $32,099 for the three months ended March 31, 2025[186] - The company intends to use substantially all funds in the Trust Account to complete its business combination[187] - The company has instructed to liquidate U.S. government securities held in the Trust Account and hold all funds in cash until the consummation of the initial business combination or liquidation[182] - The company plans to repay working capital loans from the proceeds of the Trust Account if the initial business combination is completed[189] Reporting and Compliance - The Company intends to evaluate the benefits of relying on reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for up to five years following the IPO[222] - The Company adopted ASU 2023-07 for the year ended December 31, 2024, which requires enhanced segment reporting disclosures[227] - The Company has no long-term debt, capital lease obligations, operating lease obligations, or long-term liabilities as of March 31, 2025[214] - The Company has not entered into any off-balance sheet financing arrangements or established any special purpose entities as of March 31, 2025[213] Underwriting and Fees - The underwriters are entitled to a deferred underwriting discount of $0.35 per unit, totaling $4,025,000, contingent upon the completion of an initial business combination[216] - The promissory note issued to a third party was non-interest bearing, with an aggregate amount owed of $30,000 as of March 31, 2025[220]

Financial Performance - Total revenue for the three months ended April 30, 2025, was $293.5 million, a 22% increase from $240.7 million in the same period of 2024[18]. - Subscription and support revenue reached $181.8 million, up 32% from $138.0 million year-over-year[18]. - Net income for the three months ended April 30, 2025, was $46.0 million, compared to a net loss of $5.5 million in the same period of 2024[20]. - Gross profit for the nine months ended April 30, 2025, was $520.2 million, compared to $396.9 million for the same period in 2024, reflecting a 31% increase[18]. - Comprehensive income for the three months ended April 30, 2025, was $52.8 million, compared to a loss of $7.6 million in the same period of 2024[20]. - Net income for the nine months ended April 30, 2025, was $17.853 million, a significant improvement from a net loss of $22.862 million in the same period of 2024[26]. - Cash flows from operating activities provided $56.036 million, compared to only $1.971 million in the prior year[26]. - Total revenue for the nine months ended April 30, 2025, reached $845.9 million, a 23% increase compared to $689.0 million for the same period in 2024[46]. - For the three months ended April 30, 2025, the company reported a net income of $45.991 million, compared to a net loss of $5.478 million for the same period in 2024[77]. - Basic earnings per share for the three months ended April 30, 2025, was $0.55, while for the same period in 2024, it was a loss of $0.07 per share[77]. Revenue Breakdown - Subscription revenue increased to $166.5 million for the three months ended April 30, 2025, up 38% from $120.4 million in the prior year[45]. - Total revenue from the United States for the three months ended April 30, 2025, was $191.7 million, up from $163.4 million in the same period of 2024[45]. - Total revenue from the Americas for the three months ended April 30, 2025, was $225.8 million, compared to $190.5 million in the prior year, reflecting a growth of 18%[45]. - Services revenue increased by $8.0 million (17%) to $54.5 million for the three months ended April 30, 2025, compared to $46.5 million in the same period of 2024[161]. - Subscription revenue for the nine months ended April 30, 2025, increased by $137.8 million (40%) to $480.9 million compared to $343.2 million in the same period of 2024[156]. - Support revenue decreased by $2.2 million (12%) to $15.4 million for the three months ended April 30, 2025, compared to $17.5 million in the same period of 2024[157]. - Term license revenue increased by $2.1 million (4%) during the three months ended April 30, 2025, compared to the same period a year ago[159]. Expenses and Costs - Operating expenses for the three months ended April 30, 2025, were $178.2 million, an increase from $158.9 million in the same period of 2024[18]. - Total cost of revenue increased by $12.4 million (13%) to $110.8 million for the three months ended April 30, 2025, compared to the same period in 2024[165]. - Subscription and support cost increased by $6.2 million (12%) to $57.4 million for the three months ended April 30, 2025, primarily due to cloud infrastructure expenses[165]. - Research and development expenses increased by $18.0 million (9%) during the nine months ended April 30, 2025, compared to the same period in 2024, primarily due to personnel costs rising by $15.3 million[184]. - Sales and marketing expenses rose by $20.4 million (14%) during the nine months ended April 30, 2025, driven by personnel costs increasing by $15.4 million[188]. - General and administrative expenses increased by $10.5 million (9%) during the nine months ended April 30, 2025, mainly due to professional services costs rising by $3.9 million[192]. Assets and Liabilities - Total current assets increased to $1.3 billion as of April 30, 2025, from $1.3 billion as of July 31, 2024[16]. - Long-term investments rose significantly to $323.3 million from $125.9 million year-over-year[16]. - Total liabilities decreased to $1.1 billion as of April 30, 2025, from $883.6 million as of July 31, 2024[16]. - Cash and cash equivalents at the end of the period totaled $511.512 million, down from $549.184 million at the beginning of the period[27]. - Cash, cash equivalents, and investments totaled $1.24 billion as of April 30, 2025, an increase from $1.13 billion on July 31, 2024[213]. - Working capital improved to $907.1 million as of April 30, 2025, compared to $457.9 million on July 31, 2024[213]. Strategic Investments and Acquisitions - The company made strategic investments, acquiring businesses for a net cash outflow of $26.724 million[26]. - The Company completed the acquisition of Quantee for approximately $27.9 million, with $21.4 million attributed to goodwill[69][72]. - The carrying amount of goodwill increased from $372.2 million as of July 31, 2024, to $393.6 million as of April 30, 2025[73]. Stock and Financing - The company issued $690 million in 1.25% Convertible Senior Notes due 2029 in October 2024, with a fair value of $760.0 million as of April 30, 2025[61][62]. - The company had a total principal amount of $690 million in 2029 Convertible Senior Notes as of April 30, 2025, with an effective interest rate of 1.8%[79]. - The company recognized total interest expense of $3.494 million for the three months ended April 30, 2025, compared to $1.684 million for the same period in 2024[79]. - The Company retired $220.9 million aggregate principal amount of the 2025 Convertible Senior Notes in cash for $354.0 million during the nine months ended April 30, 2025[102]. Future Outlook - The company anticipates that subscription arrangements will constitute a significant majority of annual new sales going forward, indicating a strategic shift towards cloud-based offerings[124]. - The company continues to invest in product development and cloud operations to enhance existing products and introduce new solutions, which is critical for maintaining competitive advantage[125]. - The company anticipates that subscriptions will continue to represent a significant majority of new arrangements, impacting future revenue growth due to the ratable recognition of subscription revenue[155]. - The company expects research and development expenses to increase in absolute dollars but decrease as a percentage of revenue as hiring slows[185]. - The company anticipates sales and marketing expenses to continue increasing in absolute dollars but decrease as a percentage of revenue due to slowed hiring[189]. - General and administrative expenses are expected to rise in absolute dollars due to inflation and strategic investments but decrease as a percentage of revenue as hiring slows[194].

Revenue and Growth - Revenue for the three months ended April 30, 2025, was $356.6 million, representing a 6% year-over-year increase[142]. - Annualized renewal run-rate (ARR) as of April 30, 2025, was $1,692.7 million, up 12% year-over-year, with 24% of this growth attributed to new customers[142][146]. - Total revenue for the three months ended April 30, 2025, was $356.6 million, an increase of $21.5 million or 6% compared to $335.1 million in the same period of 2024[167]. - Subscription services revenue increased by $32.2 million or 17%, reaching $217.3 million, while licenses revenue decreased by $11.8 million or 8% to $128.3 million[167]. - The company attributed 43% of total revenue growth to new customers and 57% to existing customers[167]. - The increase in subscription services revenue was driven by both prior period sales and new sales in the current period[167]. Financial Performance - Gross margin for the three months ended April 30, 2025, was 82%, slightly down from 83% in the same period of 2024[142]. - Operating loss improved to $(16.4) million for the three months ended April 30, 2025, compared to $(49.5) million in the same period of 2024[166]. - Net loss for the period was $(22.6) million, an improvement from $(28.7) million in the prior year[166]. - Interest income decreased by $1.2 million, or 9%, to $12.6 million for the three months ended April 30, 2025, compared to $13.8 million in the same period of 2024[173]. - Provision for income taxes decreased by $1.0 million, or 25%, to $2.8 million for the three months ended April 30, 2025, compared to $3.8 million in the same period of 2024[175]. Cash Flow and Liquidity - Cash flow from operations for the three months ended April 30, 2025, was $119.0 million, compared to $100.0 million for the same period in 2024[142]. - Cash and cash equivalents, restricted cash, and marketable securities totaled $1,591.9 million as of April 30, 2025, down from $1,724.1 million as of January 31, 2025[142]. - Net cash provided by operating activities was $119.0 million for the three months ended April 30, 2025, compared to $100.0 million in the same period of 2024[180]. - Net cash used in investing activities was $79.9 million for the three months ended April 30, 2025, driven by $153.4 million in purchases of marketable securities[184]. - Net cash used in financing activities was $235.2 million for the three months ended April 30, 2025, primarily due to $227.5 million in repurchases of Class A common stock[186]. - As of April 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $1,591.5 million, with an accumulated deficit of $2,010.4 million[176]. Customer Metrics - The number of customers with ARR of $1 million or more increased to 316 as of April 30, 2025, from 288 in 2024[148]. - The dollar-based net retention rate was 108% as of April 30, 2025, down from 118% in 2024[148]. Expenses and Cost Management - Total cost of revenue rose by $8.5 million or 15% to $63.9 million, driven by a $8.2 million increase in professional services costs[168]. - Sales and marketing expenses decreased by $20.5 million or 11% to $159.7 million, representing 45% of total revenue[170]. - Professional services and other costs increased by 51% to $24.1 million, primarily due to higher third-party subcontractor costs[168]. - Research and development expenses are expected to increase in absolute dollars as the company invests in new technology and product enhancements[160]. - Research and development expenses increased by $9.2 million, or 11%, to $94.8 million for the three months ended April 30, 2025, compared to $85.6 million in the same period of 2024[171]. - General and administrative expenses decreased by $8.8 million, or 14%, to $54.7 million for the three months ended April 30, 2025, compared to $63.5 million in the same period of 2024[172]. Strategic Initiatives - The Fiscal Year 2025 Workforce Restructuring is substantially completed, aimed at streamlining operations and focusing on AI and innovation[144]. - The company continues to monitor macroeconomic impacts, including foreign currency fluctuations and interest rate volatility, which may affect demand and profitability[139][141]. Foreign Currency Impact - Approximately 55% of the company's revenues and 39% of its expenses were denominated in non-U.S. dollar currencies, with net foreign currency transaction losses of $13.1 million recognized[196]. - Other expense, net increased by $26.6 million for the three months ended April 30, 2025, primarily due to a $15.9 million increase in losses from foreign currency transactions[174].

Store Operations and Growth Strategy - Ollie's operates 584 stores across 32 states as of May 3, 2025, with a growth strategy focused on opening new stores and acquiring locations from distressed retailers[83]. - The company targets new store sales of approximately $4.0 million in their first full year of operations, with an average initial cash investment of about $1.0 million per store[85]. - The addition of a fourth distribution center in Princeton, IL, is expected to support up to 750 stores, enhancing distribution capabilities[84]. - The company opened 25 new stores in Q1 fiscal 2025, compared to 4 new stores in Q1 fiscal 2024[112]. - Capital expenditures for fiscal 2025 are planned to be approximately $83 to $88 million, primarily for the opening of 75 new stores[129]. Financial Performance - Net sales increased to $576.8 million in Q1 fiscal 2025 from $508.8 million in Q1 fiscal 2024, a growth of $67.9 million or 13.4%[118]. - Comparable store sales rose by 2.6% in Q1 fiscal 2025 compared to a 3.0% increase in Q1 fiscal 2024, driven by an increase in the number of transactions[119]. - Gross profit increased to $237.0 million in Q1 fiscal 2025, with a stable gross margin of 41.1%[120]. - Net income increased to $47.6 million in Q1 fiscal 2025 from $46.3 million in Q1 fiscal 2024, a rise of $1.2 million or 2.6%[126]. - Adjusted EBITDA rose to $72.2 million in Q1 fiscal 2025 from $69.4 million in Q1 fiscal 2024, an increase of $2.7 million or 3.9%[127]. Expenses and Cost Management - The company expects SG&A expenses to increase in future periods as the store base and net sales grow, while maintaining strict discipline in monitoring these expenses[103]. - SG&A expenses rose to $164.8 million in Q1 fiscal 2025 from $142.4 million in Q1 fiscal 2024, an increase of $22.4 million or 15.7%[121]. - Pre-opening expenses increased to $6.7 million in Q1 fiscal 2025 from $2.7 million in Q1 fiscal 2024, representing 1.2% of net sales compared to 0.5%[122]. Cash Flow and Financial Position - As of May 3, 2025, the company had $369.5 million in cash and cash equivalents, with $91.9 million available to borrow under its Revolving Credit Facility[128]. - Net cash provided by operating activities was $28.7 million in Q1 fiscal 2025, down from $40.2 million in Q1 fiscal 2024, primarily due to changes in working capital[138]. - Net cash used in investing activities decreased to $18.3 million in Q1 fiscal 2025 from $68.5 million in Q1 fiscal 2024, attributed to reduced net investment[139]. - Net cash used in financing activities was $16.5 million in Q1 fiscal 2025, a decrease from $25.7 million in Q1 fiscal 2024, mainly due to lower share repurchases[140]. - The net decrease in cash and cash equivalents was $6.1 million in Q1 fiscal 2025, compared to a decrease of $54.0 million in Q1 fiscal 2024[137]. Market Position and Consumer Behavior - Ollie's business model has shown consistent growth during various economic cycles, benefiting from offering products at prices 20% to 70% below traditional retailers[82]. - Ollie's anticipates that consumer spending habits, influenced by macroeconomic conditions, will impact its sales performance, but believes it is less affected by economic downturns due to its value proposition[94]. - The company plans to leverage its Ollie's Army database marketing strategies to drive sales growth and enhance customer engagement[87]. Share Repurchase and Debt Management - The Company repurchased 159,757 shares of common stock for $17.1 million in Q1 fiscal 2025, compared to 336,934 shares for $25.0 million in Q1 fiscal 2024[135]. - As of May 3, 2025, the Company had $315.5 million remaining under its share repurchase authorization[135]. - The Company had no outstanding variable rate debt as of May 3, 2025, indicating no current interest rate risk exposure[145]. - The Company’s cash flow from operating activities was impacted by the timing of merchandise payments, despite higher net income year over year[138]. Investment Activities - The Company’s purchases of investments in Q1 fiscal 2025 were $119.0 million, offset by maturities of $127.4 million[139]. - There have been no material changes to the Company’s contractual obligations as disclosed in the Annual Report[141].

Customer Metrics - As of April 30, 2025, the company had 24,297 Core customers, contributing approximately 75% of revenues, up from 22,162 Core customers contributing 74% of revenues as of April 30, 2024[141]. - The dollar-based net retention rate for Core customers was 96% as of April 30, 2025, down from 102% in the prior year, indicating a decline in revenue retention from existing customers[145]. Revenue and Growth - The company reported revenues of $187.3 million for the three months ended April 30, 2025, representing a $14.8 million increase or 9% growth compared to $172.4 million for the same period in 2024[167]. - The company entered into its largest subscription agreement in history in May 2025, valued at $100 million over a three-year term, billed annually[142]. Profitability and Expenses - Gross profit for the three months ended April 30, 2025, was $168.0 million, with a gross margin of 90%, consistent with the prior year[163]. - Operating expenses totaled $211.9 million for the three months ended April 30, 2025, a decrease from $220.8 million in the same period in 2024[163]. - The net loss for the three months ended April 30, 2025, was $40.0 million, compared to a net loss of $63.7 million for the same period in 2024[163]. - Research and development expenses were $75.1 million for the three months ended April 30, 2025, down from $82.8 million in the prior year, reflecting a focus on efficiency[163]. - Sales and marketing expenses were $99.8 million for the three months ended April 30, 2025, compared to $104.3 million in the same period in 2024, indicating a strategic investment approach[163]. - General and administrative expenses increased by $3.3 million, or 10%, driven by a $1.8 million increase in personnel-related costs[174]. Cash Flow and Financial Position - Free cash flow was $3,995 thousand for the three months ended April 30, 2025, compared to a negative $4,275 thousand in the same period of 2024[186]. - As of April 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $470.8 million[188]. - As of April 30, 2025, the company had $290.3 million in deferred revenue, with $289.0 million recorded as a current liability[194]. - Net cash provided by operating activities for the three months ended April 30, 2025, was $6.8 million, reflecting a net loss of $40.0 million adjusted by non-cash items[199]. - The company reported a decrease in deferred revenue of $12.5 million due to decreased billings for subscriptions during the three months ended April 30, 2025[199]. - Net cash provided by investing activities for the three months ended April 30, 2025, was $4.2 million, primarily from $41.0 million in maturities of marketable securities[201]. - Net cash used in financing activities for the three months ended April 30, 2025, was $5.5 million, mainly due to $14.5 million in repurchases of Class A common stock[203]. - The company had cash and cash equivalents of $193.8 million as of April 30, 2025[212]. Future Outlook and Strategic Plans - The company anticipates continued investment in research and development, particularly in AI integration, with expenses expected to increase in dollar amount but decrease as a percentage of revenues over time[153]. - The company may seek to raise additional funds through equity or debt in the future to support its capital requirements[195]. - The company believes its current cash and marketable securities will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months[195]. Currency and Risk Management - 27% of the company's sales for the three months ended April 30, 2025, were denominated in currencies other than U.S. dollars[216]. - The company does not currently enter into derivative or hedging transactions for foreign currency risks but may consider it if exposure increases[217].

Financial Performance - Revenue for Q1 FY2026 increased 18.2% to a record $35.3 million, compared to $29.8 million in Q1 FY2025[7] - Gross profit rose 23.1% to $9.2 million, representing 26.1% of total revenues, up from 25.0% in the same year-ago quarter[8] - Net income surged 123.7% to $1.2 million, or $0.03 per diluted share, compared to $0.6 million, or $0.01 per diluted share, in Q1 FY2025[10] - Adjusted EBITDA increased 12.2% to $2.8 million for Q1 FY2026, compared to $2.5 million in the same year-ago quarter[10] - Net sales for the three months ended April 30, 2025, increased to $35,255,000, a 18.1% rise from $29,838,000 in the same period of 2024[24] - Gross profit for the same period was $9,184,000, representing a 23.1% increase from $7,463,000 year-over-year[24] - Net income for the three months ended April 30, 2025, was $1,237,000, up 123.5% from $553,000 in the prior year[24] Cash and Liquidity - Cash and cash equivalents grew to $12.0 million as of April 30, 2025, up from $7.2 million as of January 31, 2025[11] - Cash and cash equivalents increased to $12,011,000 as of April 30, 2025, compared to $7,150,000 at the beginning of the period[26] - The company generated $6.0 million of cash flow from operations during the quarter, while total debt was reduced to $4.6 million[6] - Net cash provided by operating activities was $6,005,000 for the three months ended April 30, 2025, compared to $3,641,000 in the prior year[26] Operating Expenses - Operating expenses totaled $7.6 million, with a decrease in operating expenses as a percentage of sales to 21.6% from 22.4%[9] - Operating expenses for the three months ended April 30, 2025, totaled $7,606,000, a 13.7% increase from $6,690,000 in the same period of 2024[24] - Research and development expenses decreased to $73,000 from $104,000 year-over-year[24] Investments and Growth Strategy - The company achieved record trade promotion investment at 6% of gross revenue, up from 2% in the previous quarter[3] - The company plans to utilize its cash reserves for prospective acquisitions, further innovation, and margin expansion in the upcoming quarters[6] Customer Acquisition - New customer acquisitions included Lidl, Amazon Fresh, and Sheetz, contributing to a balanced geographic distribution[4] Balance Sheet - Total assets rose to $52,725,000 as of April 30, 2025, up from $47,062,000 at the end of January 2025[22] - Total liabilities increased to $26,287,000 as of April 30, 2025, compared to $22,166,000 at the end of January 2025[22] Share Information - The company reported a weighted average of 37,597,000 basic common shares outstanding for the three months ended April 30, 2025[24]

Revenue and Sales Performance - Revenue for Q1 FY2026 increased 18.2% to a record $35.3 million, compared to $29.8 million in Q1 FY2025[7] - Net sales for the three months ended April 30, 2025, increased to $35,255,000, a 18.1% rise from $29,838,000 in the same period of 2024[24] Profitability - Gross profit rose 23.1% to $9.2 million, representing 26.1% of total revenues, up from 25.0% in the same year-ago quarter[8] - Gross profit for the same period was $9,184,000, representing a 23.1% increase compared to $7,463,000 in 2024[24] - Net income surged 123.7% to $1.2 million, or $0.03 per diluted share, compared to $0.6 million, or $0.01 per diluted share, in Q1 FY2025[10] - Net income for the three months ended April 30, 2025, was $1,237,000, up 123.5% from $553,000 in the prior year[24] Cash Flow and Liquidity - Cash and cash equivalents grew to $12.0 million as of April 30, 2025, up from $7.2 million as of January 31, 2025[11] - Cash and cash equivalents increased to $12,011,000 as of April 30, 2025, from $7,150,000 at the beginning of the period, marking a 68.5% increase[26] - The company generated $6.0 million of cash flow from operations during the quarter, while total debt was reduced to $4.6 million[6] - Net cash provided by operating activities for the three months ended April 30, 2025, was $6,005,000, a 64.7% increase from $3,641,000 in 2024[26] Operating Expenses - Operating expenses totaled $7.6 million, with a decrease in operating expenses as a percentage of sales to 21.6% from 22.4%[9] - Operating expenses for the three months ended April 30, 2025, totaled $7,606,000, a 13.7% increase from $6,690,000 in 2024[24] - Research and development expenses decreased to $73,000 from $104,000 in the same period last year, a decline of 29.8%[24] Strategic Initiatives - The company achieved record trade promotion investment at 6% of gross revenue, up from 2% in the previous quarter[3] - New customer acquisitions included Lidl, Amazon Fresh, and Sheetz, contributing to a balanced geographic distribution[4] - The company plans to utilize its cash reserves for prospective acquisitions, further innovation, and margin expansion in the upcoming quarters[6] Balance Sheet Highlights - Total assets rose to $52,725,000 as of April 30, 2025, compared to $47,062,000 as of January 31, 2025, reflecting a 12.5% growth[22] - Total liabilities increased to $26,287,000 as of April 30, 2025, from $22,166,000 as of January 31, 2025, indicating an 18.5% rise[22] Shareholder Information - The weighted average common shares outstanding for basic earnings per share increased to 37,597,000 from 37,259,000 in the prior year[24] Adjusted Metrics - Adjusted EBITDA increased 12.2% to $2.8 million for Q1 FY2026, compared to $2.5 million in the same year-ago quarter[10]