Revenue and Profitability - Total revenues for the three months ended September 30, 2025, increased by 26% to $31,109,000 compared to $24,705,000 for the three months ended August 25, 2024[129]. - HA manufacturing revenues surged by 107% to $9,360,000, driven by increased demand from a customer due to supply chain initiatives[130]. - Gross profit rose by 45% to $7,791,000, with a gross profit margin of 25.0%, up from 21.8% in the prior year[129]. Operating Expenses and R&D - Operating expenses decreased by 36% to $10,858,000, primarily due to a $5,890,000 reduction in selling, general, and administrative expenses[132]. - R&D expenses slightly declined to $1,963,000, reflecting consistent product development activities[133]. Interest and Debt Management - Interest expense increased by 19% to $6,384,000 compared to $5,383,000 in the prior year[135]. - The company had $179.6 million in borrowings outstanding under the Term Loan Credit Facility at an effective annual interest rate of 20.9%[153]. - Interest paid-in-kind under the Term Loan Credit Facility for the three months ended September 30, 2025, was $4.4 million[153]. - The company repaid $2.5 million of borrowings under the Revolving Credit Facility in June 2025[154]. Cash Flow and Liquidity - As of September 30, 2025, the company had cash of $18.9 million and received $10.0 million from early payment of principal under its note receivable[140]. - The company had approximately $23.6 million available for borrowing under the Revolving Credit Facility, with a maximum committed amount of $40.0 million[141]. - Cash flow improved by $1.6 million in the three months ended September 30, 2025, primarily due to a $2.4 million improvement in operating cash flows[142]. - The company expects its existing cash and cash generated from operations to be sufficient to finance its current operational and capital requirements for at least the next twelve months[144]. Strategic Initiatives - The company plans to launch a new ERP system in Q1 2026 to enhance inventory control and financial management[120]. - Lifecore improved workforce productivity by over 20% in the past year through targeted initiatives[120]. - The company has guaranteed contractual minimum purchasing commitments with Alcon through 2031[113]. - A significant prepayment of $5,500,000 from Alcon will be settled starting January 2026 through monthly credit memos[113]. Preferred Stock and Dividends - As of September 30, 2025, there were $0.9 million of dividends in arrears on the Redeemable Convertible Preferred Stock, representing $12.50 per preferred share[147]. - The aggregate liquidation preference of the Redeemable Convertible Preferred Stock was $47.5 million as of September 30, 2025[148]. - The company is considering financing alternatives to fund the Series A liquidation preference, which may include equity financing or debt financing[149].

Financial Performance - Total revenues for Q3 2025 were $8.6 million, a decrease of 32.8% from $12.8 million in Q3 2024[6] - Net loss for Q3 2025 was $19.6 million, or $0.22 per share, compared to a net loss of $20.6 million, or $0.29 per share, in Q3 2024[11] Product and Operational Metrics - Product gross margin improved to 64% in Q3 2025, up from 61% in Q3 2024, due to a shift towards more profitable products[6] - Research and Development expenses increased to $13.9 million in Q3 2025, compared to $11.5 million in Q3 2024, driven by higher headcount and lab supplies[6] Workforce and Management Changes - Codexis eliminated 46 positions, approximately 24% of its workforce, expecting an additional expense of about $3.5 million in Q4 2025[6] - Alison Moore has been appointed as the new CEO, succeeding Stephen Dilly, who will become Chairman of the Board[6] Cash and Investments - As of September 30, 2025, Codexis had $58.7 million in cash, cash equivalents, and short-term investments[11] - Cash and cash equivalents increased from $19,264 million to $25,351 million, an increase of about 31.5%[19] Assets and Liabilities - Total assets decreased from $149,011 million in December 2024 to $123,961 million in September 2025, a decline of approximately 16.8%[19] - Current assets fell from $98,772 million to $76,192 million, representing a decrease of about 22.9%[19] - Total liabilities increased from $82,084 million to $85,417 million, an increase of approximately 4.0%[19] - Long-term debt rose significantly from $28,905 million to $39,729 million, marking an increase of about 37.5%[19] - Stockholders' equity decreased from $66,927 million to $38,544 million, a decline of approximately 42.4%[19] - Total current liabilities decreased from $23,648 million to $18,475 million, a decline of about 21.9%[19] Accounts and Inventories - Accounts receivable decreased from $11,920 million to $6,030 million, a decline of approximately 49.5%[19] - Inventories increased from $1,799 million to $1,936 million, representing an increase of about 7.6%[19] Strategic Agreements and Future Plans - The company signed a $37.8 million Supply Assurance Agreement with Merck, with cash expected to be received by year-end 2025[6] - The company is transitioning to an innovative manufacturing solutions provider in oligonucleotide manufacturing, with a focus on ECO Synthesis technology[2] - Codexis will present at the 2025 TIDES Europe Annual Meeting from November 11-13 in Basel, Switzerland[4] Accumulated Deficit - Accumulated deficit increased from $562,806 million to $616,381 million, a rise of approximately 9.5%[19]

Revenue and Income - Total revenue for the three months ended September 30, 2025, was $363.8 million, representing a 16% increase compared to $312.7 million in the same period of 2024[104] - The company reported a net income of $1.1 million for the three months ended September 30, 2025, compared to a net loss of $6.0 million in the same period of 2024[104] - The company’s revenue growth for the nine months ended September 30, 2025, was 13%, compared to 19% for the same period in 2024[104] - Total revenue for the nine months ended September 30, 2025, increased by $116.6 million, or 13%, to $1,042.1 million from $925.5 million in the same period in 2024[117] Adjusted EBITDA - Adjusted EBITDA for the nine months ended September 30, 2025, was $108.9 million, compared to $87.0 million for the same period in 2024, reflecting a growth of 25%[104] - Adjusted EBITDA for the three months ended September 30, 2025, was $40.2 million, compared to $30.7 million for the same period in 2024, reflecting a 31% increase[111] Patient Visits and Clinician Employment - The number of clinicians employed as of September 30, 2025, was 7,996, contributing to the company's capacity to treat patients[90] - The company facilitated 2.3 million visits in the three months ended September 30, 2025, and 6.6 million visits in the nine months ended September 30, 2025[93] - Patient service revenue rose by $51.7 million, primarily due to a net increase of 764 clinicians and a 17% increase in patient visits[116] Center Costs and Expenses - Center costs, excluding depreciation and amortization, increased by $34.9 million, or 16%, to $247.2 million for the three months ended September 30, 2025, driven by a $33.5 million increase in center-based compensation[120] - Center costs, excluding depreciation and amortization, increased by $74.8 million, or 12%, to $707.3 million for the nine months ended September 30, 2025[121] - General and administrative expenses increased by $10.3 million, or 12%, to $95.6 million for the three months ended September 30, 2025, compared to $85.3 million for the same period in 2024[123] - For the nine months ended September 30, 2025, general and administrative expenses rose by $18.0 million, or 7%, to $287.4 million from $269.4 million in 2024[124] Cash Flow and Financial Position - Cash and cash equivalents increased to $203.9 million as of September 30, 2025, from $154.6 million as of December 31, 2024[132] - Net cash provided by operating activities was $88.6 million for the nine months ended September 30, 2025, compared to $44.9 million in 2024[139] - Cash flows used in investing activities amounted to $25.2 million for the nine months ended September 30, 2025, up from $15.3 million in 2024[140] - The company believes existing cash and cash equivalents will be sufficient to fund operating and capital needs for at least the next 12 months[133] Future Growth and Strategy - The company aims to expand its clinician base and has developed a national recruiting model to support this growth[92] - The company plans to open new centers to increase capacity and address patient needs in existing and new markets[100] - The company anticipates continued revenue growth driven by in-house clinician recruiting and new center strategies, as well as increased patient visits through virtual sessions[119] - The company expects general and administrative expenses to continue increasing due to planned investments for growth[125] - The company expects center costs to continue increasing in the short- to medium-term as it invests strategically to expand its business[122] Interest and Depreciation - Depreciation and amortization expense decreased by $1.5 million to $13.6 million for the three months ended September 30, 2025, from $15.1 million in 2024[126] - Interest expense, net decreased by $2.6 million to $2.8 million for the three months ended September 30, 2025, from $5.4 million in 2024[128]

Revenue Growth - Annual recurring revenue (ARR) reached $323 million, representing a year-over-year growth of 33.8%[1] - Subscriptions and services revenue hit a record of approximately $80 million, increasing by 29.2% year over year, accounting for 57.3% of total revenues[4] - Total revenue for the three months ended September 28, 2025, was $139.5 million, a 7.3% increase from $129.4 million in the previous quarter[25] - Subscription and services revenue reached $79.9 million, up 2.2% from $78.2 million in the previous quarter, while product revenue increased by 16.3% to $59.6 million[25] - For the nine months ended September 28, 2025, total revenue was $388,000,000, a slight decrease from $389,314,000 in the same period last year[38] Profitability Metrics - Record GAAP subscriptions and services gross margin of 84.5%, and non-GAAP subscriptions and services gross margin of 85.1%, up 780 and 770 basis points year over year, respectively[4] - Adjusted EBITDA was $17.1 million, reflecting a year-over-year increase of 50.3%, with an adjusted EBITDA margin of 12.2%[4] - GAAP earnings per share (EPS) reached a record of $0.07, while non-GAAP EPS was $0.16[4] - Net income for the three months ended September 28, 2025, was $6.9 million, compared to a net income of $3.1 million in the previous quarter[25] - Free cash flow for the three months ended September 28, 2025, was $14,984,000, compared to $5,855,000 in the prior quarter, representing a significant increase of 155.5%[31] Cash and Investments - The company ended the quarter with cash and cash equivalents and short-term investments totaling $165.5 million, an increase of $19.0 million year over year[4] - Cash and cash equivalents increased to $86.0 million as of September 28, 2025, from $82.0 million at the end of the previous quarter[23] - The company reported a net cash provided by operating activities of $59.0 million for the nine months ended September 28, 2025, compared to $44.6 million for the same period last year[27] Customer Growth - Cumulative paid accounts grew to 5.4 million, marking a 27.4% increase year over year[4] - Cumulative registered accounts increased to 11,792 as of September 28, 2025, compared to 11,237 in the previous quarter, reflecting a growth of 4.9%[34] - Cumulative paid accounts rose to 5,396 as of September 28, 2025, from 5,115 in the previous quarter, indicating an increase of 5.5%[35] Regional Revenue Breakdown - Revenue from the Americas was $83,831,000, accounting for 60.1% of total revenue, up from 53.2% in the same quarter last year[38] - EMEA revenue reached $49,602,000, making up 35.5% of total revenue, compared to 33.5% in the previous year[38] - APAC revenue was $6,096,000, representing 4.4% of total revenue, slightly up from 4.2% in the same quarter last year[38] - The Americas region showed significant growth with a nine-month revenue of $235,830,000, up from $195,766,000, increasing its share from 50.3% to 60.8%[38] - EMEA's nine-month revenue was $135,817,000, which is a decrease from $175,980,000, reducing its share from 45.2% to 35.0%[38] Future Outlook - The company expects fourth quarter 2025 revenue to be between $131 million and $141 million, with non-GAAP net income per share projected between $0.13 and $0.19[6] - The comprehensive launch of the refreshed product portfolio and the Arlo Secure 6 AI-driven security platform is anticipated to drive additional subscriptions and services revenue growth heading into 2026[3] - The company continues to focus on expanding its market presence, particularly in the Americas, which has shown the most robust growth[38] - Future outlook indicates a strategic emphasis on enhancing product offerings and technological advancements to drive revenue growth[38]

Financial Performance - For the three months ended September 30, 2025, the company reported a net loss of $36 million, an improvement from a net loss of $70 million for the previous quarter[31]. - The net loss attributable to common stockholders for the nine months ended September 30, 2025, was $231 million, or $0.56 per diluted share, compared to a net loss of $957 million, or $3.16 per diluted share for the same period in 2024[32]. - The company reported a net loss of $36 million for the three months ended September 30, 2025, compared to a net loss of $280 million for the same period in 2024, indicating an improvement in financial performance[161]. - The company reported a net loss of $930 million for the nine months ended September 30, 2025, compared to a net loss of $206 million for the same period in 2024, indicating a significant decline in performance[163]. - Basic loss per common share for the three months ended September 30, 2025, was $0.11, compared to a loss of $0.79 for the same period in 2024[155]. - Basic loss per common share for the nine months ended September 30, 2025, was $0.56, compared to a loss of $3.16 in the prior year[179]. Assets and Liabilities - As of September 30, 2025, the company reported total assets of $91.7 billion, loans of $63.2 billion, deposits of $69.2 billion, and stockholders' equity of $8.1 billion[22]. - Total assets decreased to $91,668 million as of September 30, 2025, down from $100,160 million on December 31, 2024, representing a decline of approximately 8.3%[153]. - Total liabilities decreased to $83,559 million as of September 30, 2025, down from $91,992 million on December 31, 2024, a reduction of approximately 9.2%[153]. - Total deposits decreased to $69,152 million as of September 30, 2025, down from $75,870 million on December 31, 2024, a decline of approximately 8.8%[153]. - Total bank liquidity exceeded the balance of uninsured deposits by $14.2 billion as of September 30, 2025[105]. Income and Expenses - Net interest income (NII) for the three months ended September 30, 2025, was $425 million, with a net interest margin of 1.91%[36]. - For the three months ended September 30, 2025, net interest income (NII) increased by $6 million compared to the previous quarter, primarily due to lower-interest bearing deposits and improved yields on loans and leases[42]. - Non-interest income for the three months ended September 30, 2025, increased by $17 million compared to the previous quarter, primarily due to a $21 million gain on investment in Figure Technology Solutions, Inc.[48]. - Total non-interest expenses for the three months ended September 30, 2025, increased by $9 million compared to the previous quarter, driven by higher general and administrative expenses and compensation costs[51]. - Total non-interest income for the nine months ended September 30, 2025, increased to $251 million, compared to $236 million for the same period in 2024, reflecting a growth of 6.4%[155]. Credit Losses and Allowances - The provision for credit losses for the three months ended September 30, 2025, decreased by $26 million compared to the previous quarter, mainly due to volume declines from the strategic reduction in loan portfolios[45]. - For the nine months ended September 30, 2025, the provision for credit losses decreased by $766 million compared to the same period in 2024, reflecting improving credit trends and stabilization in the allowance for credit losses[46]. - The allowance for credit losses on loans and leases was $1.071 billion as of September 30, 2025, down from $1.201 billion at the end of 2024[56]. - The ratio of non-accrual loans to total loans held for investment rose to 5.17% as of September 30, 2025, compared to 3.83% at December 31, 2024[84]. - The company reported net charge-offs of $73 million for the three months ended September 30, 2025, with an annualized percentage of 0.46% of average loans[92]. Loan Portfolio - Total loans and leases held for investment decreased by $5.6 billion as of September 30, 2025, compared to December 31, 2024, due to a strategy of diversifying the loan portfolio[57]. - The multi-family loan portfolio decreased by $3.6 billion to $30.466 billion as of September 30, 2025, primarily due to $2.8 billion in par payoffs and the classification of $254 million of loans to Loans held for sale[60]. - The commercial real estate (CRE) loan portfolio decreased by $1.7 billion to $10.163 billion as of September 30, 2025, consistent with the company's strategy to diversify its loan portfolio[66]. - The C&I loan portfolio decreased by $502 million to $3.2 billion, reflecting a strategic decision to reduce exposure to non-core C&I loans, despite $3.7 billion in new originations[70]. - Specialty finance loans and leases decreased by $672 million, or 17%, to $3.2 billion, as part of the strategy to run off certain non-core loans[72]. Strategic Initiatives - The company is executing a strategic transformation plan aimed at evolving into a fully diversified bank with a focus on financial resilience and sustainable earnings[25]. - The company aims to enhance operational efficiency and develop a customer-centric culture as part of its strategic priorities[27]. - The company is strategically diversifying its loan portfolio by shifting from multi-family loans to other sectors, including C&I loans[62]. Capital and Regulatory Compliance - The Company's total capital as of September 30, 2025, is $7,828 million, with a Common Equity Tier 1 ratio of 12.45%[146]. - The Bank's total capital as of September 30, 2025, is $8,832 million, with a Common Equity Tier 1 ratio of 14.05%[147]. - The Company exceeded the minimum capital requirements for a bank holding company by 792 basis points as of September 30, 2025[147]. - The Company identified material weaknesses in internal control over financial reporting, with remediation progress discussed in the latest report[149]. - The Company has developed a resolution plan in alignment with FDIC requirements, submitted prior to the due date of July 1, 2025[145].

Financial Performance - For the three months ended September 30, 2025, the company reported a net loss of $36 million, an improvement from a net loss of $70 million for the previous quarter[31]. - For the nine months ended September 30, 2025, the net loss was $206 million, significantly reduced from a net loss of $930 million for the same period in 2024[32]. - The company reported a net loss of $36 million for the three months ended September 30, 2025, compared to a net loss of $280 million for the same period in 2024, indicating an improvement in financial performance[161]. - The company experienced a net loss of $930 million for the nine months ended September 30, 2025, compared to a net loss of $206 million for the same period in 2024, indicating challenges in profitability[163]. - Basic loss per common share for the three months ended September 30, 2025, was $0.11, compared to a loss of $0.79 for the same period in 2024[155]. - Basic loss per common share for the nine months ended September 30, 2025, was $0.56, compared to a loss of $3.16 in the same period of 2024[179]. Assets and Liabilities - As of September 30, 2025, the company reported total assets of $91.7 billion, loans of $63.2 billion, deposits of $69.2 billion, and stockholders' equity of $8.1 billion[22]. - Total assets decreased to $91,668 million as of September 30, 2025, down from $100,160 million at December 31, 2024, representing a decline of approximately 8.3%[153]. - Total liabilities decreased to $83,559 million as of September 30, 2025, down from $91,992 million at December 31, 2024, a reduction of approximately 9.2%[153]. - Total deposits decreased to $69,152 million as of September 30, 2025, down from $75,870 million at December 31, 2024, a decline of about 8.8%[153]. - Total borrowed funds decreased by $1.2 billion to $13.182 billion as of September 30, 2025, primarily due to the repayment of $1.25 billion in FHLB advances[106]. Income and Expenses - Net interest income (NII) for the three months ended September 30, 2025, was $425 million, with a net interest margin of 1.91%[36]. - For the three months ended September 30, 2025, net interest income (NII) increased by $6 million compared to the previous quarter, primarily due to lower-interest bearing deposits and improved yields on loans and leases[42]. - Non-interest income for the three months ended September 30, 2025, increased by $17 million compared to the previous quarter, primarily due to a $21 million gain on investment in Figure Technology Solutions, Inc.[48]. - Total non-interest expenses for the three months ended September 30, 2025, increased by $9 million compared to the previous quarter, driven by higher general and administrative expenses and compensation costs[51]. - Total non-interest income for the nine months ended September 30, 2025, increased by $15 million compared to the same period in 2024, mainly due to the non-recurrence of a prior bargain purchase gain[49]. Credit Quality and Losses - The provision for credit losses for the three months ended September 30, 2025, decreased by $26 million compared to the previous quarter, mainly due to volume declines from the strategic reduction in loan portfolios[45]. - For the nine months ended September 30, 2025, the provision for credit losses decreased by $766 million compared to the same period in 2024, reflecting improving credit trends and stabilization in the allowance for credit losses[46]. - Provision for credit losses was $38 million for the three months ended September 30, 2025, significantly lower than $242 million in the same period of 2024, indicating improved credit quality[155]. - The allowance for credit losses on loans and leases was $1.071 billion as of September 30, 2025, compared to $1.201 billion as of December 31, 2024[203]. - Non-accrual loans increased by $626 million to $3.241 billion as of September 30, 2025, driven mainly by the classification of $566 million in loans within the multi-family portfolio due to a single borrower undergoing bankruptcy proceedings[89]. Loan Portfolio and Strategy - The company operates approximately 340 locations across nine states, with a strong presence in the New York/New Jersey metropolitan area and significant growth in Florida and the West Coast[23]. - The strategic transformation plan initiated in 2024 aims to evolve into a fully diversified bank, focusing on financial resilience and sustainable earnings[25][28]. - Total loans and leases held for investment decreased by $5.6 billion as of September 30, 2025, compared to December 31, 2024, due to a strategy of diversifying the loan portfolio[57]. - The multi-family loan portfolio decreased by $3.6 billion to $30.466 billion as of September 30, 2025, primarily due to $2.8 billion in par payoffs and a strategic decision to diversify the loan portfolio[60]. - The company is strategically diversifying its loan portfolio by shifting focus from multi-family loans to other sectors, including C&I loans[62]. Capital and Regulatory Compliance - The Company's total capital as of September 30, 2025, is $7,828 million, with a Common Equity Tier 1 ratio of 12.45%[146]. - The Bank's total capital as of September 30, 2025, is $8,832 million, with a Common Equity Tier 1 ratio of 14.05%[147]. - The Company exceeded the minimum capital requirements for a bank holding company by 792 basis points as of September 30, 2025[147]. - The company identified material weaknesses in internal control over financial reporting, with remediation progress discussed in the latest report[149]. - The capital amounts and classifications are subject to regulators' qualitative judgments about the components of capital and risk weighting assets[145]. Market and Economic Conditions - The estimated change in Economic Value of Equity (EVE) for a 100 basis point increase in interest rates is a decrease of 1.3%[136]. - The estimated change in Net Interest Income (NII) over the next twelve months for a 100 basis point reduction in short-term interest rates is an increase of 1.66%[139]. - The estimated percentage change in future NII for a 200 basis point increase in interest rates is a decrease of 1.5%[140].

Financial Performance - The company reported a net loss of $18,150,000 for the three months ended September 30, 2025, compared to a net loss of $15,378,000 for the same period in 2024, representing an increase in loss of about 18.1%[14]. - The company reported a comprehensive loss of $18,094,000 for the three months ended September 30, 2025, compared to a comprehensive loss of $15,010,000 in the same period of 2024, indicating an increase of approximately 20.7%[14]. - Total net loss for Q3 2025 was $18,150,000, compared to a net loss of $15,378,000 in Q3 2024, representing a 17.9% increase in net loss year-over-year[111]. - Cash used in operating activities for the three months ended September 30, 2025, amounted to $17.4 million, compared to $16.0 million for the same period in 2024, reflecting a net loss increase from $15.4 million to $18.2 million[175]. - Cash provided by financing activities was $0.9 million for the three months ended September 30, 2025, a decrease from $5.5 million in 2024[180]. Expenses - Operating expenses increased to $19,817,000 for the three months ended September 30, 2025, up from $16,941,000 in the prior year, marking a rise of approximately 16.7%[14]. - Research and development expenses rose to $13,149,000 for the three months ended September 30, 2025, compared to $12,754,000 in the prior year, reflecting an increase of about 3.1%[14]. - General and administrative (G&A) expenses for the three months ended September 30, 2025 were $6,668,000, a 59% increase from $4,187,000 in 2024[156]. - The increase in G&A expenses was primarily due to a $1.1 million rise in G&A compensation and benefits and a $1.4 million increase in other G&A costs related to business development[156]. - Share-based compensation expense for the three months ended September 30, 2025, totaled $2.531 million, an increase from $1.400 million in the same period of 2024[81]. Assets and Liabilities - Total current assets decreased from $171,145,000 as of June 30, 2025, to $154,708,000 as of September 30, 2025, a decline of approximately 9.6%[12]. - The company’s total liabilities decreased from $13,363,000 as of June 30, 2025, to $11,496,000 as of September 30, 2025, a decline of approximately 13.9%[12]. - As of September 30, 2025, the company had an accumulated deficit of $422.0 million, with cash and cash equivalents of $9.1 million and short-term investments in marketable debt securities of $143.1 million[36]. - The company has total liabilities of $11.5 million, including current liabilities of $10.2 million as of September 30, 2025[37]. - The fair value of the Company's cash and cash equivalents was approximately $147.5 million as of September 30, 2025, with $4.4 million in money market funds and $143.1 million in marketable debt securities[98]. Capital Resources and Funding - The company raised approximately $96.8 million in net proceeds from the 2025 Underwritten Offering, which included the issuance of 20,786,923 shares of common stock at a price of $3.25 per share[61]. - The company completed a private placement in May 2025, resulting in net proceeds of $4.2 million from the issuance of 1,295,383 shares at a purchase price of $3.25 per share[60]. - The company expects its cash and cash equivalents and investments in marketable debt securities to be adequate to meet its contractual obligations for at least 12 months from the issuance date of the financial statements[41]. - The company has incurred cumulative net losses of $422.0 million since inception and has not generated any meaningful revenue to date[160]. - Long-term contractual obligations include a regulatory milestone payment of $25.0 million payable to XOMA and additional payments up to $25.0 million payable to ActiveSite[164]. Research and Development - The company is focused on developing ersodetug, a potential treatment for hyperinsulinism, indicating ongoing commitment to research and development in rare diseases[22]. - The company aims to complete the sunRIZE study by December 2025 and submit a Biologics License Application for ersodetug in mid-2026[121]. - The upLIFT Phase 3 study for tumor hyperinsulinism is expected to yield topline results in the second half of 2026[130]. - Ersodetug has shown substantial improvement in hypoglycemia management for patients with refractory conditions, with no discontinuations due to lack of response or safety[134]. - Six patients with congenital hyperinsulinism are currently receiving ersodetug under the Expanded Access Program, with treatment durations ranging from one to three years[135]. Market and Commercialization - The addressable market for congenital hyperinsulinism in the U.S. is estimated to be over 1,500 individuals[122]. - The company did not generate any revenue for the three months ended September 30, 2025 and 2024, remaining in a late stage of clinical development without commercial products[152]. - Future commercialization of product candidates may require additional milestone payments and royalties totaling up to $202.5 million, contingent on successful regulatory approvals[165]. Stock and Equity - The weighted average number of common shares outstanding increased from 69,736,150 in 2024 to 103,422,647 in 2025, an increase of approximately 48.3%[14]. - The company had a total of 15,462,163 shares authorized under its equity incentive plans as of September 30, 2025, with 14,477,087 shares outstanding[71]. - The company had 1,081,500 unvested Restricted Stock Units (RSUs) at the end of September 2025, with an aggregate fair value of approximately $0.2 million for new grants[79][80]. - The company issued stock options for 740,000 shares during the three months ended September 30, 2025, with a weighted average exercise price of $7.71[74]. - The intrinsic value of outstanding stock options as of September 30, 2025, was approximately $72.7 million, with vested options having an intrinsic value of approximately $42.0 million[76]. Legal and Compliance - The company had no pending or threatened lawsuits that could materially affect its results of operations as of September 30, 2025[88]. - Management has determined that internal control over financial reporting was effective as of September 30, 2025[185].

Financial Performance - Total net revenue for Q3 2025 was $81.3 million, a decrease of 16.4% compared to $97.2 million in Q3 2024[129] - Total billings increased by 30.2% year-over-year to $63.7 million in Q3 2025, up from $48.9 million in Q3 2024[129] - Net income attributable to MarketWise, Inc. was $1.5 million for the third quarter of 2025, compared to $1.7 million for the same period in 2024[177] - For the three months ended September 30, 2025, net income decreased by 21.2% to $17.9 million compared to $22.7 million in 2024[204] - For the nine months ended September 30, 2025, net income was $50.1 million, down 24.9% from $66.7 million in 2024[204] - EBITDA for the three months ended September 30, 2025, was $18,949,000, a decrease of $4,220,000 or 18.2% compared to $23,169,000 in 2024[203] - The company reported EBITDA of $18.9 million for the three months ended September 30, 2025, a decrease of 18.2% from $23.2 million in 2024[204] - For the nine months ended September 30, 2025, net revenue was $244,728,000, a decrease of $66,495,000 or 21.4% compared to $311,223,000 in 2024[186] Subscriber Metrics - The paid subscriber base decreased by 214,000, or 36.1%, to 379,000 as of September 30, 2025, compared to 592,000 a year earlier[148] - Active free subscribers decreased by 1.2 million, or 36.7%, to 2.1 million as of September 30, 2025, down from 3.3 million in the same period last year[145] - Average revenue per user (ARPU) increased by 35.5% to $566 in Q3 2025, compared to $417 in Q3 2024[144] - Average Revenue Per User (ARPU) increased by $148, or 35.5%, to $566 as of September 30, 2025, compared to $417 as of September 30, 2024, driven by a 34% decrease in trailing four-quarter Paid Subscribers[152] - Subscriber churn rate ranged from approximately 2.4% to 3.3% per month between 2022 and 2024, with a net revenue retention rate averaging over 55% during the same period, indicating strong subscriber satisfaction[150] Cash Flow and Expenses - Cash from operating activities improved to $2.2 million in Q3 2025, an increase of $8.0 million compared to a cash outflow of $5.8 million in Q3 2024[129] - Cash and cash equivalents stood at $50.5 million as of September 30, 2025, with no debt outstanding[129] - Operating expenses for the third quarter of 2025 totaled $63.5 million, down from $75.3 million in the same quarter of 2024[177] - Total operating expenses for the nine months ended September 30, 2025, were $195,317,000, a decrease of $51,115,000 or 20.7% from $246,432,000 in 2024[188] - Sales and marketing expenses decreased by $5,498,000 or 15.0%, primarily due to a $7.8 million decrease in amortization of deferred contract acquisition costs[184] - Adjusted CFFO for the three months ended September 30, 2025, was $2,169,000, a decrease of $7,998,000 or 137.2% from $(5,829,000) in 2024[196] - Free Cash Flow for the three months ended September 30, 2025, was $1,692,000, down $7,361,000 or 128.8% from $(5,869,000) in 2024[202] Dividends and Shareholder Actions - The company announced a quarterly and special dividend totaling $0.40 per Class A share on October 30, 2025[129] - The company repurchased 57,224 shares totaling $1.0 million during the three months ended September 30, 2025[218] Accounting and Financial Reporting - The financial statements are prepared in accordance with GAAP, requiring management to make estimates and assumptions affecting reported amounts of assets, liabilities, revenue, costs, and expenses[230] - Significant accounting policies include "Revenue Recognition" and "Transactions and Valuation of Goodwill and Other Acquired Intangible Assets," which are critical for understanding the financial condition and results of operations[231] - There were no material changes to the accounting policies during the three and nine months ended September 30, 2025[231] Other Financial Metrics - The company incurred $68.0 million in net cash used in financing activities for the nine months ended September 30, 2025, primarily due to $50.0 million in tax distributions[228] - The company expects fluctuations in Adjusted CFFO and Adjusted CFFO Margin in future periods as it invests in its business to execute its growth strategy[198] - The company expects to incur payment obligations under the Tax Receivable Agreement (TRA) with a liability of $4.3 million as of September 30, 2025[214] - The company recorded an impairment loss on leasehold improvement assets totaling $0.4 million during the nine months ended September 30, 2025[222] - As of September 30, 2025, the company's cash float was approximately $83.4 million, down from $119.7 million as of December 31, 2024[206]

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Financial Performance - Net income attributable to Assured Guaranty Ltd. for Q3 2025 was $105 million, a decrease of 38.6% from $171 million in Q3 2024[6]. - Adjusted operating income for Q3 2025 was $124 million, compared to $130 million in Q3 2024, reflecting a decline of 4.6%[6]. - The diluted earnings per share (EPS) for Q3 2025 was $2.18, a decrease of 31.24% from $3.17 in Q3 2024[6]. - The company’s return on equity (ROE) for Q3 2025 was 7.4%, down from 12.1% in Q3 2024[6]. - Total capital returned to common shareholders was $134 million in Q3 2025, compared to $147 million in Q3 2024, a decline of 8.84%[6]. - For the three months ended September 30, 2025, net income attributable to AGL was $105 million, down 38.56% from $171 million in the prior year[15]. - Adjusted operating income for the three months ended September 30, 2025, was $124 million, a decrease of 4.62% from $130 million in the same period of 2024[19]. - Basic earnings per share for the three months ended September 30, 2025, were $2.20, compared to $3.23 for the same period in 2024, a decline of 31.93%[15]. - Adjusted operating income for the nine months ended September 30, 2025, was $336 million, compared to $389 million in 2024, reflecting a decrease of 13.6%[148]. Revenue and Premiums - Gross written premiums (GWP) increased to $75 million in Q3 2025, up 22.95% from $61 million in Q3 2024[6]. - For the nine months ended September 30, 2025, total revenues reached $833 million, up 16.38% from $716 million in the same period of 2024[15]. - For the three months ended September 30, 2025, total revenues were $207 million, compared to $206 million in the previous year, reflecting a marginal increase of 0.49%[26]. - Net earned premiums for the insurance segment were $95 million, with total expenses amounting to $92 million, resulting in a net income of $105 million[26]. - Total gross written premiums (GWP) for the nine months ended September 30, 2025, reached $195 million, compared to $254 million in the same period of 2024[63]. Assets and Equity - The company reported total assets of $12,101 million as of September 30, 2025, an increase from $11,901 million as of December 31, 2024[17]. - As of September 30, 2025, shareholders' equity attributable to AGL increased to $5,658 million from $5,495 million as of December 31, 2024, representing a growth of 2.97%[11]. - The company’s long-term debt remained stable at $1,702 million as of September 30, 2025, compared to $1,699 million at the end of 2024[17]. - Shareholders' equity attributable to AGL per share increased to $121.13, compared to $108.80 in 2024, representing a growth of 11.5%[144]. - Adjusted operating shareholders' equity per share increased to $123.10 from $114.75 year-over-year[152]. Investment Performance - The company reported a fair value gain of $17 million on CIVs for the three months ended September 30, 2025[26]. - The company recorded unrealized losses on the investment portfolio amounting to $(159) million for the three months ended September 30, 2025[25]. - The total net investment income for the three months ended September 30, 2025, was $94 million, compared to $82 million for the same period in 2024, representing a 14.6% increase[50]. - The total net investment income for the nine months ended September 30, 2025, was $270 million, an increase from $247 million in the same period of 2024, reflecting a growth of 9.3%[53]. - The annualized investment income based on amortized cost and pre-tax book yields was reported at $369 million[38]. Claims and Losses - Total claims-paying resources were reported at $10,138 million, slightly down from $10,211 million as of December 31, 2024[11]. - The financial guaranty insurance segment reported a net expected loss of $186 million for the three months ended September 30, 2025, reflecting ongoing challenges in the market[79]. - The total expected net loss to be paid as of September 30, 2025, is $104 million, with significant recoveries noted in both public and structured finance sectors[80]. - The company anticipates a total of $97,393 million in net expected loss amortization from 2025 to 2029, indicating a robust outlook for future financial stability[76]. Risk Management and Capitalization - The capital ratio was reported at 79:1, indicating strong financial stability relative to net debt service outstanding[61]. - The net exposure to qualified statutory capital ratio stood at 50:1, demonstrating effective risk management practices[61]. - Below Investment Grade (BIG) exposures totaled $11,378 million as of September 30, 2025, an increase of 11.7% compared to $10,182 million at the end of 2024[111]. - The company anticipates continued market expansion and strategic initiatives to enhance its portfolio and mitigate risks associated with below investment grade exposures[111]. Non-GAAP Measures - The Company presents both GAAP and non-GAAP financial measures, with non-GAAP measures providing necessary information for analysts and investors to evaluate financial results[182]. - Adjusted operating income is defined as net income attributable to AGL, adjusted for realized gains/losses, non-credit impairment-related unrealized gains/losses, and foreign exchange gains/losses[190][193]. - The Company emphasizes that non-GAAP measures should not be considered substitutes for GAAP measures due to potential lack of comparability[181].