Exhibit 99.1 Financial Highlights for the First Quarter of 2025 1 · Vehicle sales were RMB9,939.3 million (US$1,369.7 million) i in the first quarter of 2025, representing an increase of 18.6% from the first quarter of 2024 and a decrease of 43.1% from the fourth quarter of 2024. · Vehicle margin ii was 10.2% in the first quarter of 2025, compared with 9.2% in the first quarter of 2024 and 13.1% in the fourth quarter of 2024. · Total revenues were RMB12,034.7 million (US$1,658.4 million) in the first quarte ...

Financial Performance - Net sales increased by 13.4% to $576.8 million, compared to $508.8 million in the same quarter last year[2] - Adjusted net income per diluted share was $0.75, reflecting a year-over-year increase of 2.7%[7] - Adjusted net income increased to $46,073 thousand in Q1 2025, up from $45,210 thousand in Q1 2024, reflecting a growth of 1.9%[18] - The net income per diluted share increased to $0.77 in Q1 2025 from $0.75 in Q1 2024, representing a growth of 2.7%[18] Store Performance - Comparable store sales rose by 2.6%, driven by an increase in transactions[7] - The number of stores open at the end of the period rose to 584 in Q1 2025, compared to 516 in Q1 2024, indicating a year-over-year store growth of 13.2%[19] - Comparable store sales change was 2.6% in Q1 2025, slightly down from 3.0% in Q1 2024[19] - The average net sales per store rose to $1,005 in Q1 2025 from $993 in Q1 2024, reflecting a growth of 1.2%[19] Outlook and Projections - The company reaffirmed its fiscal 2025 earnings outlook, projecting net sales between $2.579 billion and $2.599 billion[6] - The projected increase in comparable store sales for fiscal 2025 is between 1.4% and 2.2%[6] Cash and Investments - Cash and cash equivalents, along with short-term investments, totaled $369.5 million, with a total cash and investment position of $414.9 million, up 21.5% year over year[7] - Cash, cash equivalents, and short-term investments increased to $369,508 thousand in Q1 2025 from $341,500 thousand in Q1 2024, marking a rise of 8.2%[19] Expenses and Margins - Gross margin remained flat at 41.1%, with lower supply chain costs offset by a decrease in merchandise margin[7] - Selling, general and administrative expenses as a percentage of sales increased by 60 basis points to 28.6%[7] Share Repurchases - The company invested $17.1 million to repurchase 159,757 shares of its common stock, with $315.5 million remaining for future repurchases[7] - Share repurchases totaled $17,107 thousand in Q1 2025, down from $25,007 thousand in Q1 2024[19] Operating Activities - Net cash provided by operating activities decreased to $28,702 thousand in Q1 2025 from $40,184 thousand in Q1 2024, representing a decline of 28.8%[17] Capital Expenditures - Capital expenditures were $26,740 thousand in Q1 2025, slightly down from $26,865 thousand in Q1 2024[19] EBITDA - Adjusted EBITDA for Q1 2025 was $72,159 thousand, compared to $69,431 thousand in Q1 2024, showing an increase of 3.9%[18]

Financial Performance - Net sales for the 13 weeks ended May 2, 2025, increased to $10,435,979, up 5.3% from $9,914,021 in the same period last year[22] - Gross profit for the same period rose to $3,231,288, representing a gross margin of 30.9%, compared to 30.2% in the prior year[22] - Net income for the quarter was $391,928, an increase of 7.9% from $363,317 in the previous year[22] - Earnings per share (EPS) for the quarter was $1.78, up from $1.65 year-over-year[22] - Consolidated net income for the 13 weeks ended May 2, 2025, was $391,928 thousand, compared to $363,317 thousand for the same period in 2024, representing an increase of 7.9%[72] - Cash flows from operating activities rose to $847.2 million in 2025, an increase of $183.3 million compared to 2024[121] Assets and Liabilities - Total current assets decreased to $7,896,303 from $8,163,925 at the end of January 2025, primarily due to a reduction in cash and cash equivalents[20] - Total liabilities decreased to $23,283,998 from $23,719,026, reflecting a reduction in current liabilities[20] - Cash and cash equivalents at the end of the period were $850,018, down from $932,576 at the beginning of the period[30] - As of May 2, 2025, the Company's total current and long-term obligations were $5.744 billion, down from $6.238 billion as of January 31, 2025[52] Tax and Legal Matters - Total reserves for uncertain tax benefits, interest expense related to income taxes, and potential income tax penalties amounted to $14.5 million as of May 2, 2025[46] - The effective income tax rate for the 13-week period ended May 2, 2025, was 23.4%, slightly higher than the 23.3% rate for the same period in 2024[48] - The Company expects to reduce its reserve for uncertain tax positions by $3.5 million in the coming twelve months[47] - The effective income tax rate for 2025 was 23.4%, slightly higher than 23.3% in 2024, primarily due to stock-based compensation[113] - The Company believes that pending legal matters will be resolved without a material adverse effect on its consolidated financial statements[68] Operational Highlights - The company reported a LIFO provision of $12.3 million for the quarter, compared to $10.3 million in the same period last year[36] - Operating lease costs for the 13-week periods ended May 2, 2025, and May 3, 2024, were $487.9 million and $459.8 million, respectively, reflecting an increase of 6.5%[51] - The weighted-average remaining lease term for the Company's operating leases was 9.3 years, with a weighted average discount rate of 4.6% as of May 2, 2025[51] - The company opened 156 new stores and remodeled 668 stores in the first quarter of 2025, with plans to open approximately 575 new stores in 2025[92] - The Company operates 20,582 stores across 48 U.S. states and Mexico as of May 2, 2025, maintaining its position as the largest discount retailer in the U.S. by store count[82] Sales and Inventory - Consumables sales reached $8,636,680 thousand, up from $8,210,850 thousand, reflecting a growth of 5.2% year-over-year[70] - The percentage of net sales from consumables remained high at 82.76%, reflecting the company's focus on this category[111] - Inventory turnover improved to 4.2 in 2025 from 3.8 in 2024, indicating better inventory management[106] - Total merchandise inventories decreased by 2% in 2025, with apparel and home products both seeing an 8% decline[122] - Inventory represented approximately 46% of total assets as of May 2, 2025, indicating a focus on inventory management[117] Expenses and Dividends - Selling, general and administrative expenses increased by 8.5% to $2.66 billion, impacting overall profitability[109] - Cash dividends paid were $129.8 million in 2025, slightly up from $129.7 million in 2024[126] - Dividends paid during the quarter remained stable at $0.59 per share, consistent with the previous year[22] - A cash dividend of $0.59 per share was paid during the first quarter of 2025, with a similar dividend declared for June 2025[76] Future Outlook and Strategy - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[32] - The company plans to enhance its digital shopping experience and expand same-day home delivery offerings through partnerships with third-party delivery services[90] - The company has approximately $1.38 billion available under its common stock repurchase program, which has no expiration date[74] - The company has a remaining stock repurchase authorization of approximately $1.38 billion but plans no repurchases in 2025[127] - The Company is focused on mitigating the impact of tariffs on consumer behavior and financial results, with no material impact observed in the first quarter of 2025[84]

Financial Performance - Sales for Q1 Fiscal 2026 were $1.54 billion, an increase of $30.8 million or 2.0% compared to Q1 of FY25[5]. - Same store sales (SSS) rose by 2.5% compared to a decline of 8.9% in Q1 of FY25[6]. - Adjusted operating income increased to $70.3 million, up from $57.8 million in Q1 of FY25, representing an adjusted operating margin of 4.6%[8]. - Diluted earnings per share (EPS) improved to $0.78, compared to a loss of $0.90 in Q1 of FY25, while adjusted diluted EPS was $1.18, up from $1.11[9]. - Gross margin was $598.8 million, an increase of approximately $26 million from Q1 of FY25, with a gross margin rate of 38.8%[7]. - Net income for the quarter was $33.5 million, a decrease from $52.1 million year-over-year[23]. - Basic earnings per share were $0.79, compared to a loss of $0.90 in the prior year[23]. - Total operating income for the first quarter of Fiscal 2026 was $48.1 million, a decrease of 3.4% compared to $49.8 million in the first quarter of Fiscal 2025[27]. - Adjusted EBITDA for the first quarter of Fiscal 2026 was $113.8 million, an increase from $101.5 million in the prior year[47]. Guidance and Future Expectations - Fiscal 2026 total sales guidance is updated to $6.57 to $6.80 billion, with same store sales expected to range from (2.0%) to +1.5%[14]. - Adjusted diluted EPS guidance for Fiscal 2026 is raised to a range of $7.70 to $9.38, compared to the previous range of $7.31 to $9.10[14]. - The company expects capital expenditures of approximately $145 to $160 million for the fiscal year[16]. Cash and Assets - Cash and cash equivalents at the end of the quarter were $264.1 million, down from $729.3 million in Q1 of FY25 due to share repurchases and debt retirement[10]. - Total assets decreased to $5,451.9 million from $5,726.6 million year-over-year[24]. - The company reported a net cash used in operating activities of $175.3 million for the quarter[25]. - Free cash flow for the 13 weeks ended May 3, 2025, was $(211.9) million, compared to $(181.5) million for the same period in the prior year[39]. Inventory and Store Operations - Inventories increased to $2,006.5 million from $1,937.3 million, indicating a rise in stock levels[24]. - The company operated 2,633 stores as of May 3, 2025, a decrease of 9 stores from the end of Fiscal 2025[28]. - The company reported a total of 2,371 stores in the North America segment after 5 openings and 13 closures[29]. Segment Performance - North America segment sales increased by 2.3%, while international segment sales saw a 1.5% increase at constant exchange rates[26]. - North America segment adjusted operating income rose to $97.1 million, a 14.0% increase from $85.2 million in the first quarter of Fiscal 2025[41]. - The International segment reported an adjusted operating loss of $7.0 million, unchanged from the previous year[42]. Tax and Other Financial Metrics - The effective tax rate for the first quarter of Fiscal 2026 was 26.5%, up from 11.1% in the same quarter of the previous year[45].

Financial Performance - Net sales increased by 5.3% to $10.4 billion in Q1 2025 compared to $9.9 billion in Q1 2024[4] - Operating profit increased by 5.5% to $576.1 million, up from $546.1 million in Q1 2024[7] - Diluted earnings per share (EPS) rose by 7.9% to $1.78, compared to $1.65 in Q1 2024[9] - Net income for the quarter was $391,928,000, representing a 7.9% increase from $363,317,000 in the prior year[31] - Earnings per share for the quarter were $1.78, up from $1.65 in the same quarter last year[31] Sales and Revenue Growth - Same-store sales rose by 2.4%, driven by a 2.7% increase in average transaction amount, despite a 0.3% decrease in customer traffic[4] - The company expects net sales growth of approximately 3.7% to 4.7% for fiscal year 2025, an increase from the previous expectation of 3.4% to 4.4%[16] - For the quarter ended May 2, 2025, net sales increased by 5.3% to $10,435,979,000 compared to $9,914,021,000 for the same period in 2024[31] Profitability Metrics - Gross profit as a percentage of net sales improved to 31.0%, up from 30.2% in Q1 2024, an increase of 78 basis points[6] - Gross profit margin improved to 30.96% from 30.18% year-over-year, with gross profit amounting to $3,231,288,000[31] Cash Flow and Liquidity - Cash flows from operations increased by 27.6% to $847.2 million[5] - Cash and cash equivalents at the end of the period were $850,018,000, down from $932,576,000 at the beginning of the period[33] Inventory and Assets - Total merchandise inventories decreased by 7.0% to $6.6 billion as of May 2, 2025, compared to $6.9 billion as of May 3, 2024[10] - The company reported a decrease in merchandise inventories to $6,590,096,000 from $6,934,389,000 year-over-year[29] - Total assets decreased slightly to $30,987,661,000 from $31,132,733,000 at the end of January 2025[29] Expenses and Liabilities - Selling, general and administrative expenses increased to $2,655,175,000, accounting for 25.44% of net sales[31] - The company’s total liabilities were $23,283,998,000, a decrease from $24,009,320,000 in the previous year[29] Future Plans - The updated guidance for diluted EPS is approximately $5.20 to $5.80, compared to the previous expectation of $5.10 to $5.80[16] - The company plans to execute approximately 4,885 real estate projects in fiscal year 2025, including opening about 575 new stores in the U.S.[18] - The company opened 156 new stores during the quarter, resulting in a total store count of 20,582, a net decrease of 12 stores[37]

Financial Performance - Comparable store sales growth of 9.9% and total year-over-year sales growth of 8.3%, or $15.4 million, to $201.7 million[1][6] - Adjusted EBITDA of $5.4 million, an increase of $6.2 million compared to the prior year, with a flowthrough of 40%[1][10] - Net income of $0.9 million, compared to a net loss of $3.4 million in Q1 2024, with diluted earnings per share of $0.11[6][10] - Adjusted operating income for Q1 2025 was $1,036 million, compared to a loss of $5,589 million in Q1 2024[22] - Adjusted net income for Q1 2025 was $1,418 million, improving from a loss of $2,663 million in Q1 2024[22] - Adjusted diluted earnings per share (EPS) for Q1 2025 was $0.17, compared to a loss of $0.32 in Q1 2024[22] - Adjusted EBITDA for Q1 2025 was $5,406 million, a significant increase from a loss of $796 million in Q1 2024[23] Inventory and Expenses - Merchandise inventory decreased by 7.6% to $109.9 million, with a 45% reduction in aged product compared to Q1 2024[10] - SG&A expenses leveraged 270 basis points compared to Q1 2024, reflecting disciplined cost controls amid increased sales[6][10] - Adjusted SG&A expenses for Q1 2025 were $74,404 million, compared to $72,831 million in Q1 2024[22] - The company incurred $402 million in cyber incident expenses during Q1 2025[22] - Other non-recurring expenses amounted to $885 million in Q1 2025, down from $1,380 million in Q1 2024[22] - The company reported an asset impairment of $64 million in Q1 2025, while there was no such expense in Q1 2024[22] Future Outlook - The company expects full-year comparable store sales growth in the mid-single digits, and EBITDA to be in the range of $6 million to $10 million, a significant improvement from 2024[11] - Plans to open up to 5 new stores and remodel approximately 50 stores during fiscal 2025[11] - Total liquidity at the end of Q1 2025 was approximately $117.0 million, with no debt and $41.6 million in cash[10][11] Operational Focus - The company continues to focus on enhancing customer experience and operational improvements to drive future growth[4][5] Interest and Tax - Interest income for Q1 2025 was $458 million, down from $849 million in Q1 2024[22] - The company did not report any income tax benefit in Q1 2025, compared to a benefit of $2,773 million in Q1 2024[22] Gross Margin - Gross margin improved to 39.6%, up 90 basis points from 38.7% in Q1 2024, driven by higher initial markup and lower shrink[6][10]

Financial Performance - Third quarter fiscal 2025 net earnings were $57.8 million, down 49.1% from $113.5 million a year ago, with diluted EPS of $0.48 compared to $0.92 in 2024[1][23] - Net earnings for the nine months ended April 30, 2025, were $252.7 million, a decrease from $304.3 million in the same period of 2024[28] - The diluted EPS for the nine months ended April 30, 2025, was $2.09, down from $2.48 in the previous year[44] - Adjusted net earnings for the nine months ended April 30, 2025, were $321.4 million, compared to $304.3 million in the prior year[44] Sales and Revenue - Total sales for the third quarter reached $940.1 million, a 1.3% increase compared to $927.9 million in the same period last year, driven by pricing benefits and volume growth[3][23] - Total net sales for the company increased by 1.3% to $940.1 million in the three months ended April 30, 2025, compared to $927.9 million in the same period of 2024[33] - Life Sciences sales are projected to grow high-single digits versus 2024, driven by strong demand in Disk Drive and Food & Beverage replacement parts[17] - The Mobile Solutions segment reported a decline in net sales by 0.4% to $582.6 million, with the Off-Road and On-Road categories decreasing by 8.3% and 24.5% respectively[33] - The Industrial Solutions segment saw an increase in net sales by 5.3% to $283.3 million, driven by a 27.1% increase in the Aerospace and Defense category[33] - Life Sciences segment net sales increased by 0.7% to $74.2 million, reflecting a growth of 8.3% for the nine months ended April 30, 2025[33] - Total company revenue increased by 2.2% for the nine months ended April 30, 2025, with a notable growth of 5.4% in the APAC region[37] - The Aerospace and Defense segment saw a significant revenue increase of 24.2% for the nine months ended April 30, 2025, driven by strong demand[40] - The Industrial Solutions segment experienced a total revenue increase of 2.1% for the nine months ended April 30, 2025, despite a decline in EMEA[40] Margins and Expenses - Gross margin decreased to 34.2% from 35.6% in 2024, attributed to higher manufacturing costs[7] - Operating expenses as a percentage of sales rose to 24.9%, up from 20.1% in the prior year, driven by impairment charges and restructuring costs[8] - Operating margin fell to 9.3% for the three months ended April 30, 2025, compared to 15.5% in the prior year[30] - The company reported a gross profit of $947.4 million for the nine months ended April 30, 2025, compared to $939.6 million in the prior year[43] - The adjusted EBITDA for the nine months ended April 30, 2025, was $510.3 million, an increase from $485.5 million in the previous year[43] Cash Flow and Capital Expenditures - Free cash flow for the nine months ended April 30, 2025, was $192.4 million, down from $300.7 million in the same period last year[43] - Capital expenditures for fiscal 2025 are forecasted to be between $75 million and $90 million, with adjusted free cash flow conversion expected to be between 80% and 90%[18] - The company reported a cash conversion ratio of 126.2% for the three months ended April 30, 2025, up from 105.9% in the prior year[30] Shareholder Actions and Debt - The company repurchased 2.4% of its outstanding shares for $192.4 million during the third quarter, with a year-to-date total of 3.3% repurchased for $273.8 million[11] - Long-term debt increased to $638.8 million as of April 30, 2025, compared to $483.4 million as of July 31, 2024[26] Guidance and Future Outlook - Adjusted full-year EPS guidance for fiscal 2025 is narrowed to between $3.64 and $3.70, reflecting an increase from prior guidance[13] - The company anticipates continued growth in adjusted EPS for fiscal 2025, although specific guidance is not provided due to variable factors[45] - The effective tax rate for the nine months ended April 30, 2025, was 26.2%, an increase from 23.1% in the same period of 2024[30]

Financial Position - Cash and cash equivalents totaled $2,277 as of April 18, 2025, down from $10,230 as of November 1, 2024[26] - Total assets as of April 18, 2025, amounted to $152,443 million, compared to $164,393 million as of April 19, 2024, indicating a decrease of 7.2%[62] - As of April 18, 2025, total debt is $2,340, with long-term debt amounting to $1,702 after reclassification of $1,239 of equipment note payable to current notes payable[77] Inventory and Sales - Total inventories increased to $40,055 as of April 18, 2025, compared to $33,338 as of November 1, 2024, with finished goods rising to $23,010 from $20,391[47] - The reserve for slow-moving and obsolete inventory was $1,201 as of April 18, 2025, up from $1,115 as of November 1, 2024[47] - The Company reported total sales of $50,639 million for the twelve weeks ended April 18, 2025, compared to $47,314 million for the same period in 2024, representing a year-over-year increase of 4.9%[62] - For the twenty-four weeks ended April 18, 2025, total sales reached $103,184 million, an increase from $102,156 million in the prior year, reflecting a growth of 1%[68] - The Company’s segment for Frozen Food Products generated sales of $27,842 million for the twenty-four weeks ended April 18, 2025, compared to $27,304 million in the same period of 2024, marking a growth of 2%[63] Expenses and Income - Promotional allowances deducted from sales for the twelve weeks ended April 18, 2025, were $4,219, compared to $3,871 for the same period in 2024, reflecting a 9% increase[34] - The gross margin for the twelve weeks ended April 18, 2025, was $11,071 million, up from $10,726 million in the prior year, indicating an increase of 3.2%[62] - Operating income for the twelve weeks ended April 18, 2025, was a loss of $3,187 million, compared to a loss of $3,246 million in the same period of 2024, showing a slight improvement[62] - A price increase on products is planned to offset higher costs for meat commodities, alongside efforts to reduce selling, general, and administrative expenses[80] Tax and Liabilities - The Company’s effective tax rate was 27.2% for the second quarter of fiscal year 2025, down from 28.5% in 2024, reflecting a tax benefit of $1,301 million[71] - The estimated liabilities for self-insured workers' compensation and employee healthcare are subject to inherent uncertainties, which may lead to significant changes in future periods[24] - The company has retained a valuation allowance of $99 million against certain California net operating losses, with state loss carryforwards of approximately $5,000 million expiring through 2040[72] Credit and Compliance - The company has a line of credit with Wells Fargo Bank, N.A. allowing borrowing up to $7,500, with $2,000 borrowed on May 20, 2025[39] - The company has a revolving line of credit facility allowing borrowing up to $7,500 until November 30, 2025, with an interest rate of the daily simple secured overnight financing rate plus 2.0%[74] - The company was in violation of the Fixed Charge Coverage Ratio covenant as of April 18, 2025, which was waived for that fiscal quarter[78] - The company does not anticipate compliance with the Fixed Charge Coverage Ratio covenant during the third and fourth fiscal quarters of 2025, potentially impacting liquidity[80] - The company is discussing potential solutions with Wells Fargo Bank regarding the amendment or renewal of the revolving line of credit[80] Regulatory and Accounting - The company adopted ASU No. 2016-13 on November 4, 2023, which did not have a material impact on the financial statements[42] - The company has been subject to audits for federal income tax returns for fiscal years 2021 through 2023 and state income tax returns for 2020 through 2023[73] - Walmart accounted for 29.7% of sales and 25.2% of accounts receivable as of April 18, 2025, compared to 28.4% and 25.1% respectively in 2024[29] - Dollar General represented 14.1% of sales and 24.2% of accounts receivable as of April 18, 2025, compared to 14.5% and 22.1% in 2024[29]

Financial Performance - Credo reported a record revenue of $436.8 million for fiscal year 2025, representing a 126% increase year over year[2]. - In Q4 2025, revenue reached $170.0 million, growing by 25.9% quarter over quarter and 179.7% year over year[4]. - GAAP net income for Q4 2025 was $36.6 million, with a GAAP diluted net income per share of $0.20[4]. - For Q1 2026, revenue is expected to be between $185.0 million and $195.0 million[5]. - Non-GAAP net income for the year ended May 3, 2025, reached $129,926 thousand, significantly higher than $14,570 thousand in the previous year[21]. - GAAP gross profit for the three months ended May 3, 2025, was $114,188 thousand, compared to $39,966 thousand for the same period last year, reflecting a 185.5% increase[21]. - Non-GAAP operating income for the three months ended May 3, 2025, was $62,523 thousand, compared to $7,462 thousand in the same period last year, a 737.5% increase[21]. Expenses and Margins - Research and development expenses for Q4 2025 were $47.6 million, up from $36.3 million in the previous quarter[17]. - Total operating expenses for Q4 2025 were $80.4 million, compared to $59.7 million in Q3 2025[17]. - GAAP gross margin for Q1 2026 is projected to be between 63.4% and 65.4%[5]. - Non-GAAP gross margin is projected to be between 64.0% and 66.0% for the three months ending August 2, 2025[22]. - Total GAAP operating expenses for the year ended May 3, 2025, were $245,785 thousand, up from $156,489 thousand, indicating a 57.0% increase[21]. - GAAP operating income margin improved to 19.9% for the three months ended May 3, 2025, compared to a loss margin of (13.0)% in the same period last year[21]. Assets and Liabilities - The company ended Q4 2025 with a cash and short-term investment balance of $431.3 million[4]. - Total assets increased to $809,257 thousand, up from $601,932 thousand, representing a 34.4% growth year-over-year[19]. - Total current assets rose to $713,534 thousand, an increase of 34.5% from $530,265 thousand year-over-year[19]. - Cash and cash equivalents increased to $236,328 thousand, compared to $66,942 thousand, marking a 253.5% rise year-over-year[19]. - Total liabilities decreased to $127,675 thousand from $61,734 thousand, a reduction of 51.5% year-over-year[19]. Market Outlook - The company anticipates continued demand for its high-performance connectivity solutions, particularly from hyperscaler customers[2]. - Credo's innovative solutions are aimed at supporting the growing needs of AI, cloud computing, and hyperscale networks[14].

Financial Performance - Total revenues for the three months ended April 30, 2025, were $759,043,000, representing a 16.7% increase from $650,345,000 in the same period of 2024[18]. - Subscription services revenue increased to $634,768,000, up 18.9% from $533,955,000 year-over-year[18]. - Net income for the quarter was $228,190,000, a 41.1% increase compared to $161,664,000 in the prior year[18]. - Operating income rose to $233,732,000, reflecting a 50.5% increase from $155,172,000 in the same quarter of 2024[18]. - The company reported a gross profit of $585,219,000, which is a 22.8% increase from $476,461,000 in the same quarter last year[18]. - Net cash provided by operating activities was $877,158,000, compared to $763,516,000 for the same period in 2024, marking a 14.9% increase[24]. - The company generated net income of $714 million for the fiscal year ended January 31, 2025, representing a 35.7% increase from $526 million in 2024[80]. Assets and Equity - Cash and cash equivalents at the end of the period were $1,964,982,000, up from $1,118,785,000 at the beginning of the year[15]. - Total assets increased to $7,765,077,000, compared to $7,339,756,000 as of January 31, 2025[15]. - Stockholders' equity grew to $6,211,098,000, up from $5,832,373,000 at the end of the previous quarter[15]. - Veeva's total available-for-sale securities amounted to $4,103,435 thousand as of April 30, 2025, with a gross unrealized gain of $31,083 thousand and unrealized losses of $2,050 thousand[32]. Expenses - Research and development expenses were $184,033,000, an increase of 13.1% from $162,711,000 in the prior year[18]. - Sales and marketing expenses increased slightly to $98,628 thousand, a 1% rise from $97,301 thousand, driven by higher employee compensation costs[107]. - General and administrative expenses increased by 12% to $68,826 thousand, primarily due to a $10 million rise in employee compensation-related costs[109]. Tax and Income Per Share - The effective tax rate for the three months ended April 30, 2025, was 23.6%, up from 21.9% in the prior year, primarily due to reduced future benefits from non-deductible compensation[44]. - Basic net income per share increased to $1.40 for the three months ended April 30, 2025, up from $1.00 in the same period of 2024, a 40% increase[60]. Customer and Market Insights - North America generated $459,467 thousand in revenues for the three months ended April 30, 2025, a 20.4% increase from $381,599 thousand in 2024[71]. - R&D Solutions accounted for 54% of total revenues for the three months ended April 30, 2025, while Commercial Solutions accounted for 46%[79]. - The company served 1,477 customers as of January 31, 2025, an increase from 1,432 customers in 2024[81]. Risks and Challenges - The company faces risks related to cybersecurity, including potential breaches that could harm customer trust and lead to significant liabilities[153]. - The markets for the company's solutions are highly competitive, with significant competition from firms like Salesforce and IQVIA[160]. - The company is subject to changing laws and regulations, which may impose additional compliance costs and liabilities[158]. - The company faces risks related to international operations, including regulatory, economic, and political challenges[171]. Compliance and Regulatory Environment - Compliance with complex regulations in the life sciences industry is essential; failure to comply could lessen demand for solutions and expose the company to significant claims[193]. - Increasingly complex data protection regulations, such as the EU GDPR, impose significant obligations and potential penalties for non-compliance, affecting operational costs[199]. - The company anticipates ongoing evolution of privacy and data protection laws, which will require continuous compliance efforts and could lead to increased operational complexity[201]. Strategic Initiatives - The company announced the launch of Veeva AI, integrating AI across major application areas, which may introduce new risks and challenges affecting adoption[207]. - The company expects R&D Solutions revenues to increase as a percentage of total revenues in the future[79].