Financial Performance - Net loss attributable to NL stockholders was $7.8 million, or $0.16 per share, in Q3 2025, compared to net income of $36.0 million, or $0.74 per share, in Q3 2024, indicating a significant decline in earnings [88]. - For the first nine months of 2025, net loss attributable to NL stockholders was $6.8 million, or $0.14 per share, compared to net income of $50.7 million, or $1.04 per share, in the same period of 2024 [89]. - Interest and dividend income decreased to $2.1 million in Q3 2025 from $2.7 million in Q3 2024, a decline of 24% [94]. - Corporate expenses increased to $3.0 million in Q3 2025, a 21% rise from $2.3 million in Q3 2024 [92]. - Selling, general and administrative expenses for Q3 2025 were $6.2 million, unchanged from Q3 2024, but increased by $0.9 million (5%) for the first nine months due to higher employee-related costs [100]. - Income from operations decreased by $67.7 million to $26.6 million in the first nine months of 2025 compared to $94.3 million in the same period of 2024, influenced by factors impacting gross margin [144]. Segment Performance - CompX segment profit increased to $4.8 million in Q3 2025, a 42% increase from $3.3 million in Q3 2024, driven by higher sales and gross margin [96]. - CompX segment profit for the first nine months of 2025 was $17.0 million, up 40% from $12.1 million in the same period of 2024 [96]. - CompX's net sales increased by $6.4 million (19%) in Q3 2025 and $13.1 million (12%) for the first nine months compared to the same periods in 2024, driven by higher sales in Security Products and Marine Components [98]. - Security Products net sales rose by 14% in Q3 2025 and 8% for the first nine months, primarily due to increased sales to the government security market [104]. - Marine Components net sales surged by 36% in Q3 2025 and 29% for the first nine months, driven by higher sales to the industrial and government markets [107]. Market Conditions - The company faces substantial risks and uncertainties that could materially impact future results, including supply and demand fluctuations and changes in raw material costs [83]. - Kronos expects fourth quarter operating results to be lower than the third quarter due to weaker demand and pricing pressure, projecting lower full-year results for 2025 compared to 2024 [163]. - Kronos anticipates that pricing pressures will continue through 2025, with expectations for pricing upside in 2026 due to capacity reductions and anti-dumping duties [163]. - The TiO2 market has seen significant capacity reductions, which Kronos believes may provide opportunities for market share gains, particularly in Europe [161]. Costs and Expenses - Cost of sales increased by $26.4 million, or 7%, in Q3 2025 compared to Q3 2024, primarily due to unfavorable fixed cost absorption and higher inventory costs [135]. - Gross margin as a percentage of net sales decreased to 10% in Q3 2025 from 21% in Q3 2024, primarily due to lower average TiO2 selling prices [137]. - Kronos' cost of sales increased by $33.4 million, or 3%, in the first nine months of 2025 compared to the same period in 2024, primarily due to approximately $45 million in additional unabsorbed fixed production costs [138]. - The cost of sales as a percentage of net sales rose to 85% in the first nine months of 2025 from 81% in the same period of 2024, mainly due to unfavorable fixed cost absorption [139]. - Gross margin as a percentage of net sales decreased to 15% in the first nine months of 2025 from 19% in the first nine months of 2024, attributed to lower fixed cost absorption and lower average selling prices [140]. Cash Flow and Liquidity - Net cash used in operating activities was $32.3 million in the first nine months of 2025, compared to net cash provided of $16.6 million in the same period of 2024 [169]. - The company increased its maximum borrowings under its credit facility from $300 million to $350 million to enhance liquidity [165]. - Kronos' total cash and cash equivalents stood at $123.6 million as of September 30, 2025, with $70.2 million outstanding on its revolving credit facility [184]. - The company expects sufficient liquidity to meet short-term obligations of $50 million and long-term obligations through 2030, with $49.5 million available for future borrowing as of September 30, 2025 [188]. Strategic Initiatives - The company is implementing targeted workforce reductions to improve its long-term cost structure, expecting a more significant financial impact than previous reductions [162]. - Kronos acquired full control of LPC in July 2024, aiming to enhance its product offerings and realize significant synergies, although short-term impacts are limited by soft demand [164]. - The company plans to evaluate acquisitions of undervalued companies and may consider issuing additional equity securities and increasing indebtedness in the future [187]. Risks and Legal Matters - The company is subject to various legal proceedings and proposed legislation that could affect its financial position, although no material adverse effects are expected at this time [196]. - The company remains exposed to market risks, including currency exchange rates and interest rates, with no material changes since the 2024 Annual Report [200].

Financial Performance - Total revenues for the three months ended September 30, 2025, were $134.47 million, a slight increase from $131.41 million in the same period of 2024, representing a growth of 2%[17] - Interest and fee income increased to $118.96 million for the three months ended September 30, 2025, compared to $113.91 million in the prior year, reflecting a growth of 4.5%[17] - Net income for the three months ended September 30, 2025, was a loss of $1.95 million, compared to a net income of $22.13 million in the same period of 2024, marking a significant decline[17] - Cash flow from operating activities for the six months ended September 30, 2025, was $106,782,688, compared to $102,175,477 for the same period in 2024, showing an increase of about 4.9%[24] - The company reported a net loss of $1,946,197 compared to a net income of $22,128,158 for the same period in 2024, indicating a significant decline in profitability[19] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $1.06 billion, an increase from $1.01 billion as of March 31, 2025, representing a growth of 5.3%[15] - The company's total liabilities increased to $696.72 million as of September 30, 2025, compared to $568.15 million as of March 31, 2025, reflecting a rise of 22.6%[15] - The total shareholders' equity decreased to $365,646,141 as of September 30, 2025, down from $417,463,754 a year earlier, reflecting a reduction of approximately 12.4%[21] Credit Losses and Provisions - The provision for credit losses for the three months ended September 30, 2025, was $49.84 million, up from $46.67 million in the same period of 2024, indicating an increase of 4.7%[17] - The company experienced a provision for credit losses of $100,356,871 for the six months ended September 30, 2025, compared to $92,087,528 for the same period in 2024, representing an increase of approximately 8.5%[24] - The allowance for credit losses increased from $109,027,028 in 2025 to $117,796,583 in 2025, reflecting a provision for credit losses of $49,840,902 during the three months ended September 30, 2025[73] Stock and Share Repurchase - The company repurchased common stock amounting to $67,290,785 during the three months ended September 30, 2025, compared to $10,097,355 in the same period of the previous year[19] - The Company authorized a share repurchase program of up to $100.0 million, with $33.4 million remaining as of September 30, 2025[37] - On September 3, 2025, the Company repurchased 347,064 shares for $60.0 million at a price of $172.88 per share[38] Loan Portfolio - Total gross loans receivable increased to $1,315.5 million as of September 30, 2025, up from $1,225.6 million as of March 31, 2025[60] - The weighted average Rehab Rate for loans was 5.2% as of September 30, 2025, compared to 4.5% as of March 31, 2025[61] - Current gross loans receivable totaled $1,314,135,845, with $1,139,961,629 classified as current loans[63] - Gross charge-offs for the three months ended September 30, 2025, reached $45,294,964, with the majority coming from loans originated in 2025 at $41,964,087[66] Tax and Interest - The effective income tax rate for the three months ended September 30, 2025, was a negative 15.4%, compared to 20.8% for the prior year quarter[144] - The company recognized tax benefits from investments amounting to $3.6 million for the three months ended September 30, 2025[142] - The company’s interest paid during the period was $23,212,950 for the six months ended September 30, 2025, compared to $21,468,005 for the same period in 2024, representing an increase of approximately 8.1%[24] Operating Expenses - General and administrative expenses for the three months ended September 30, 2025, were $71.97 million, compared to $46.36 million in the same period of 2024, an increase of 55.5%[17] - Operating lease costs for the three months ended September 30, 2025, were $6,168,464, slightly down from $6,279,769 in 2024[83] Debt and Financing - The Company entered into a new Revolving Credit Agreement with aggregate commitments of $640.0 million, which can increase to $790.0 million with an accordion feature[123] - At September 30, 2025, $584.6 million was outstanding under the Revolving Credit Facility, with an unused amount of $54.5 million available[125] - The Company recognized a $3.7 million loss on extinguishment of debt during the six months ended September 30, 2025[132] Stock-Based Compensation - The total fair value of restricted stock vested during the six months ended September 30, 2025, was $11,871,873[110] - The company’s stock-based compensation related to equity classified awards resulted in a reversal of $19,012,696 for the six months ended September 30, 2024, compared to a gain of $9,162,775 in the current period[24] - The total stock-based compensation included as a component of personnel expenses for the three months ended September 30, 2025, was $6,056,068[112]

Financial Performance - TruBridge reported total revenue of $86.1 million for Q3 2025, a 1.7% increase from $84.7 million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $16.3 million, compared to $14.7 million in Q3 2024, reflecting a 10.9% year-over-year growth[3] - The company achieved a 19% Adjusted EBITDA margin in Q3 2025, indicating improved profitability[2] - Recurring revenue accounted for 94% of total revenue in Q3 2025, highlighting the stability of the revenue stream[3] - TruBridge expects total revenue for Q4 2025 to be between $86 million and $89 million, with adjusted EBITDA projected between $16.5 million and $19.5 million[4] - For the full year 2025, total revenue is expected to be between $345 million and $348 million, revised from a previous estimate of $345 million to $350 million[4] - The company reported a GAAP net income of $5.6 million in Q3 2025, a significant turnaround from a net loss of $9.1 million in Q3 2024[3] - Net income for the nine months ended September 30, 2025, was $8,641,000, a significant improvement from a net loss of $15,390,000 in the same period of 2024[15] - Non-GAAP net income for Q3 2025 was $12,812,000, compared to a loss of $3,105,000 in Q3 2024, indicating a strong recovery[30] - Non-GAAP EPS for Q3 2025 was $0.88, compared to a loss of $0.22 in Q3 2024, showcasing improved profitability[30] Revenue Segmentation - Financial Health revenue for Q3 2025 was $54.5 million, representing 63% of TruBridge's total revenue[3] - Financial Health recurring revenues for Q3 2025 were $53,514,000, slightly up from $53,513,000 in Q3 2024[32] - Patient Care recurring revenues increased to $27,425,000 in Q3 2025 from $27,052,000 in Q3 2024, indicating growth in this segment[32] - Total non-recurring revenues for Q3 2025 were $5,167,000, compared to $4,135,000 in Q3 2024, reflecting an increase in non-recurring activities[32] - Patient Care segment bookings for the nine months ended September 30, 2025, were $27,105,000, slightly down from $27,464,000 in the same period of 2024[17] Operational Metrics - Total assets increased to $399,412,000 as of September 30, 2025, compared to $394,432,000 on December 31, 2024, reflecting a growth of 0.25%[13] - Total current liabilities increased to $53,749,000 as of September 30, 2025, from $52,975,000 on December 31, 2024, indicating a rise of 1.5%[13] - Cash and cash equivalents increased to $19,920,000 at the end of the period, compared to $12,324,000 at the beginning of the period, marking a growth of 61.5%[15] - The company experienced a net cash provided by operating activities of $28,107,000 for the nine months ended September 30, 2025, compared to $21,839,000 in 2024, representing a 28.5% increase[15] - Total bookings for the three months ended September 30, 2025, were $15,503,000, down 26% from $20,950,000 in the same period of 2024[17] Leadership and Strategy - TruBridge has made leadership enhancements, including hiring a Chief Business Officer to drive growth and client-centered excellence[2] - The company is focused on optimizing performance and achieving greater EBITDA margins and free cash flow in the coming years[2] Non-GAAP Financial Measures - Stock-based compensation is a non-cash expense that is excluded from non-GAAP financial measures due to its variability and lack of direct correlation to business performance[38] - Non-recurring charges related to severance and business transformation initiatives are excluded from non-GAAP financial measures as they may not reflect underlying business performance[38] - Non-cash interest expense, including amortization of deferred debt issuance costs, is excluded from non-GAAP financial measures for similar reasons[38] - Interest expense and other income, which includes interest on term loans and revolving credit facilities, is excluded from non-GAAP financial measures due to its transactional nature[38] - Gains or losses on the disposal of property and equipment are excluded from non-GAAP financial measures as they may not correlate with business performance[38] - The gain on the sale of AHT, a previously wholly-owned business, is excluded from non-GAAP financial measures due to its specific transactional nature[38] - Changes in the fair value of contingent consideration from the acquisition of Viewgol are excluded from non-GAAP financial measures as they may not reflect ongoing business performance[38] - Tax shortfalls or windfalls from stock-based compensation are excluded from non-GAAP financial measures due to their variability and lack of correlation to business performance[38] Adjusted EBITDA - Adjusted EBITDA for the nine months ended September 30, 2025, reached $48,245,000, up 25.5% from $38,460,000 in the same period of 2024[26] - Adjusted EBITDA for Q3 2025 reached $16,272,000, up from $14,692,000 in Q3 2024, resulting in an Adjusted EBITDA margin of 18.9% compared to 17.3%[28] - Financial Health segment adjusted EBITDA was $8,872,000 for the three months ended September 30, 2025, compared to $9,964,000 in the same period of 2024[26]

Financial Performance - TruBridge reported total revenue of $86.1 million for Q3 2025, a 1.7% increase from $84.7 million in Q3 2024[3] - Adjusted EBITDA margin for Q3 2025 was 19%, reflecting a sustainable profitability expansion[2] - For the full year 2025, TruBridge expects total revenue between $345 million and $348 million, revised from $345 million to $350 million[4] - GAAP net income for Q3 2025 was $5.6 million, compared to a net loss of $9.1 million in Q3 2024[3] - Non-GAAP net income for Q3 2025 was $12.8 million, compared to a net loss of $3.1 million in Q3 2024[3] - Financial Health revenue for Q3 2025 was $54.5 million, representing 63% of total revenue[3] - Total revenues for the three months ended September 30, 2025, were $86,106,000, an increase from $84,700,000 in the same period of 2024, representing a growth of 1.7%[32] - Adjusted EBITDA for the three months ended September 30, 2025, was $16,272,000, up from $14,692,000 in the same period of 2024, reflecting a margin of 18.9%[28] - Non-GAAP net income for the three months ended September 30, 2025, was $12,812,000, compared to a loss of $3,105,000 in the same period of 2024[30] - Non-GAAP EPS for the three months ended September 30, 2025, was $0.88, compared to a loss of $0.22 in the same period of 2024[30] - The company’s total adjusted EBITDA for the nine months ended September 30, 2025, was $48,245,000, compared to $38,460,000 for the same period in 2024, indicating a significant year-over-year increase[28] Revenue Composition - Recurring revenue accounted for 94% of total revenue in Q3 2025[3] - Total recurring revenues for the three months ended September 30, 2025, were $80,939,000, slightly increasing from $80,565,000 in the same period of 2024[32] - The company reported total non-recurring revenues of $5,167,000 for the three months ended September 30, 2025, compared to $4,135,000 in the same period of 2024, marking an increase of 25%[32] Bookings and Future Expectations - Total bookings for Q4 2025 are expected to be $15.5 million, down from $21.0 million[3] - Total bookings for the three months ended September 30, 2025, were $15,503,000, down 26% from $20,950,000 in the same period of 2024[17] - The company reported a total of $63,097,000 in bookings for the nine months ended September 30, 2025, a decrease of 7% from $67,810,000 in 2024[17] - Financial Health segment bookings for the three months ended September 30, 2025, were $9,507,000, down from $12,496,000 in 2024, representing a decline of 23.9%[17] - Patient Care segment bookings for the nine months ended September 30, 2025, were $27,105,000, slightly down from $27,464,000 in 2024, indicating a decrease of 1.3%[17] - The company plans to transition to reporting total bookings on an Annual Contract Value (ACV) basis starting January 2025, enhancing revenue recognition clarity[18] Financial Health and Assets - Total assets increased to $399,412,000 as of September 30, 2025, compared to $394,432,000 on December 31, 2024, reflecting a growth of 0.25%[13] - Cash and cash equivalents increased to $19,920,000 at the end of the period, compared to $12,324,000 at the beginning, marking a growth of 61.5%[15] - Total current liabilities increased to $53,749,000 as of September 30, 2025, compared to $52,975,000 on December 31, 2024, reflecting a rise of 1.5%[13] - Net income for the nine months ended September 30, 2025, was $8,641,000, a significant improvement from a net loss of $15,390,000 in the same period of 2024[15] Leadership and Strategic Initiatives - The company has made leadership enhancements, including hiring a Chief Business Officer to drive growth[2] - TruBridge aims to achieve greater EBITDA margins and free cash flow in the coming years through strategic improvements[2] Non-GAAP Financial Measures - Stock-based compensation is a non-cash expense that is excluded from non-GAAP financial measures due to its variability and lack of direct correlation to business performance[38] - Non-recurring charges related to severance and business transformation initiatives are excluded from non-GAAP financial measures as they may not reflect underlying business performance[38] - Non-cash interest expense, including amortization of deferred debt issuance costs, is excluded from non-GAAP financial measures for similar reasons[38] - Interest expense and other income, which includes interest incurred on loans, is excluded from non-GAAP financial measures due to its transactional nature[38] - Gains or losses on the disposal of property and equipment are excluded from non-GAAP financial measures as they may not correlate with business performance[38] - The gain on the sale of AHT, a previously wholly-owned business, is excluded from non-GAAP financial measures due to its specific transaction nature[38] - Changes in fair value of contingent consideration from the acquisition of Viewgol are excluded from non-GAAP financial measures as they may not reflect ongoing business performance[38] - Tax shortfalls or windfalls from stock-based compensation are excluded from non-GAAP financial measures due to their variability and lack of correlation to business performance[38]

Financial Performance - Total revenues for the three months ended September 30, 2025, were $2.43 million, compared to $0 for the same period in 2024[11] - Operating loss for the three months ended September 30, 2025, was $38.93 million, an increase from a loss of $31.30 million in the same period of 2024[11] - Net loss for the nine months ended September 30, 2025, was $163.78 million, compared to a net loss of $224.46 million for the same period in 2024[11] - The company reported a basic loss per share of $0.19 for the three months ended September 30, 2025, compared to $0.54 for the same period in 2024[11] - For the nine months ended September 30, 2025, the net loss was $163,778,000, compared to a net loss of $224,458,000 for the same period in 2024, indicating a 27% improvement in net loss year-over-year[21] - The company reported net cash used in operating activities of $114,052,000 for the nine months ended September 30, 2025, slightly higher than $112,985,000 for the same period in 2024[21] - The company recorded total depreciation expense of $21.9 million for the nine months ended September 30, 2025, compared to $23.9 million for the same period in 2024[55] - The net loss for the three months ended September 30, 2025, was $28.370 million, compared to a net loss of $90.639 million for the same period in 2024[201] - Basic net loss attributable to common stockholders for the nine months ended September 30, 2025, was $169.705 million, compared to $224.458 million for the same period in 2024[201] - The diluted net loss per share attributable to common stockholders for the three months ended September 30, 2025, was $(0.31), compared to $(0.54) for the same period in 2024[201] Cash and Liquidity - Cash and cash equivalents increased to $234.36 million as of September 30, 2025, up from $15.68 million at December 31, 2024[10] - Cash and cash equivalents and restricted cash at the end of the period totaled $247,253,000, a significant increase from $93,653,000 at the end of the same period in 2024, representing a 164% increase[21] - The company has alleviated previous concerns regarding its ability to continue as a going concern for at least the next twelve months due to improved financial conditions[42] - The Company is currently evaluating different strategies to further increase its liquidity position[42] - The Company currently has a $200.0 million Revolving Credit Facility, with a recent borrowing of $10.0 million at an interest rate of 21.8%[46] - The company has a $200.0 million Revolving Credit Facility, with no amounts drawn as of September 30, 2025[76] Assets and Liabilities - Total assets reached $989.12 million as of September 30, 2025, compared to $798.39 million at December 31, 2024[10] - Total current liabilities increased to $118.40 million as of September 30, 2025, from $90.88 million at December 31, 2024[10] - The company’s accumulated deficit increased to $797.15 million as of September 30, 2025, from $633.38 million at December 31, 2024[10] - Total stockholders' equity decreased to $68.22 million as of September 30, 2025, from $180.45 million at December 31, 2024[10] - Long-term debt increased to $308.1 million as of September 30, 2025, compared to $294.3 million at December 31, 2024[58] - Accrued expenses and other current liabilities totaled $23.5 million as of September 30, 2025, a decrease from $43.3 million as of December 31, 2024[56] Equity and Stock - The Company raised $300,000,000 from the issuance of Series B Convertible Perpetual Preferred Stock during the nine months ended September 30, 2025[21] - The Company raised approximately $300.0 million from the sale of 300,000 shares of Series B Convertible Perpetual Preferred Stock at an initial issue price of $1,000 per share[41] - The Series B Convertible Perpetual Preferred Stock is convertible into Common Stock at an initial conversion price of $14.02, representing a 30% premium to the 10-day volume weighted average price prior to the execution of the subscription agreements[113] - The Series A Preferred Stock has a dividend rate of 8% per annum, with $2.9 million recognized as interest expense during the three months ended September 30, 2025[127] - As of September 30, 2025, the liability for Series A Preferred Stock was $26.3 million, up from $18.4 million as of December 31, 2024[127] - The Company has a contingent put right associated with the Series A Preferred Stock, which had no fair value ascribed as of September 30, 2025[128] - As of September 30, 2025, the Company has 180.2 million shares of Common Stock issued and outstanding, up from 173.6 million shares as of December 31, 2024[134] - The Company raised approximately $33.0 million in gross proceeds from a private placement of 4,091,293 shares of Common Stock at a price of $8.0655 per share on February 5, 2025[135] - The Company is authorized to issue 25.0 million shares of preferred stock, with 0.4 million shares issued and outstanding as of September 30, 2025[137] - As of September 30, 2025, there are approximately 17.7 million shares available for issuance under the 2021 Equity Incentive Plan[140] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $4.38 million, slightly down from $4.94 million in the same period of 2024[11] - The Company allocated proceeds from the offering to various projects, including $62 million for PreP equipment and a research and development lab, as well as payments for long-lead items related to the Augusta Facility[81][83] - The Augusta Facility is currently in the engineering and design validation phase, focusing on operational optimization and efficiency[85] Legal and Regulatory - The Company is involved in ongoing legal proceedings, including an arbitration demand seeking approximately $17.0 million related to construction activities at the Ironton Facility[100] - The Company has determined that it requires a full valuation allowance for net deferred tax assets, resulting in no reported tax expense for the three and nine months ended September 30, 2025[94] Inventory - The Company’s total inventory increased to $10,725,000 as of September 30, 2025, compared to $8,087,000 as of December 31, 2024, reflecting a rise in raw materials and finished goods[53] - The Company’s inventory includes $5,487,000 in raw materials, $370,000 in work in process, and $4,868,000 in finished goods as of September 30, 2025[53] Compensation and Warrants - Equity-based compensation increased to $12,668,000 for the nine months ended September 30, 2025, compared to $8,637,000 for the same period in 2024, reflecting a 47% increase[21] - Total equity-based compensation expense for the nine months ended September 30, 2025, was $12.7 million, compared to $8.7 million for the same period in 2024[155] - The Company has 31,735 thousand warrants outstanding as of September 30, 2025, down from 33,351 thousand as of December 31, 2024[156] - The Company may redeem outstanding warrants at a price of $0.01 per warrant if the last sale price of the Common Stock equals or exceeds $18.00 per share for any 20 trading days within a 30-day trading period[159]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to ________ Commission File Number: 001-40234 PureCycle Technologies, Inc. (State or other jurisdiction of incorporation or organization) (I.R.S. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Delaware 86-2293091 Identification No.) 20 North Orange Avenue, Suite 106 Orlando, Florida 32801 (877) 64 ...

Revenue Performance - Total revenue for Q3 2025 was $104.6 million, a 10% increase year-over-year from $94.8 million in Q3 2024[6] - Software revenue reached $43.8 million, reflecting a 22% growth compared to $35.9 million in Q3 2024[6] - Services revenue was $60.8 million, showing a 3% increase from $58.9 million in Q3 2024[8] - Total revenue for the three months ended September 30, 2025, was $104,616,000, reflecting a 10% increase from $94,820,000 in the same period of 2024[47] - Total revenue for the nine months ended September 30, 2025, was $315,190,000, an increase of 11% from $284,787,000 in the same period of 2024[47] Profitability - Net income for Q3 2025 was $1.5 million, a significant turnaround from a net loss of $1.4 million in Q3 2024, representing a 211% improvement[14] - Net income attributable to common stockholders for Q3 2025 was $1.5 million, compared to a net loss of $1.4 million in Q3 2024[38] - For the three months ended September 30, 2025, the company reported a net income of $1,525,000 compared to a net loss of $1,371,000 for the same period in 2024[44] - Adjusted net income for the nine months ended September 30, 2025, was $56,050,000, compared to $48,193,000 for the same period in 2024, marking a 16.1% increase[45] - Diluted earnings per share for the three months ended September 30, 2025, was $0.01, compared to a loss of $0.01 in the same period of 2024[46] Adjusted Metrics - Adjusted EBITDA for Q3 2025 was $35.2 million, up 7% from $33.1 million in Q3 2024[13] - Adjusted EBITDA for the nine months ended September 30, 2025, was $102,026,000, an increase from $88,522,000 in the same period of 2024, representing a growth of 15.3%[44] Bookings - Total bookings for Q3 2025 were $96.6 million, a slight increase of 1% year-over-year[8] - Software bookings were $40.8 million, marking a 17% increase compared to $34.8 million in Q3 2024[9] - Services bookings decreased by 9% year-over-year to $55.8 million, influenced by softer trends among tier-one customers[10] Guidance and Expectations - Full year 2025 revenue guidance is updated to a range of $415 million to $420 million[18] - Adjusted diluted earnings per share for full year 2025 is expected to be in the range of $0.45 to $0.47[18] Cash and Expenses - Cash and cash equivalents at the end of Q3 2025 were $172.7 million, down from $179.2 million at the end of Q4 2024[40] - Total operating expenses for Q3 2025 were $61.9 million, an increase from $55.0 million in Q3 2024[38] - The company incurred $24.9 million in equity-based compensation expense for the nine months ended September 30, 2025[42] - The company incurred equity-based compensation expenses of $9,574,000 for the three months ended September 30, 2025, compared to $8,187,000 in the same period of 2024[45] Balance Sheet - Total liabilities decreased to $471.0 million as of September 30, 2025, from $516.4 million at the end of Q4 2024[40] - The company’s accumulated deficit as of September 30, 2025, was $(123.9) million, an improvement from $(128.3) million at the end of Q4 2024[40] - The company’s total stockholders' equity increased to $1,064.8 million as of September 30, 2025, from $1,058.7 million at the end of Q4 2024[40] Other Financial Metrics - The company reported a net cash provided by operating activities of $67.5 million for the nine months ended September 30, 2025, compared to $31.1 million in 2024[42] - The change in fair value of contingent consideration for the nine months ended September 30, 2025, was $(3,212,000), compared to $8,092,000 in the same period of 2024[45] - The company reported a currency loss of $534,000 for the three months ended September 30, 2025, compared to a gain of $1,546,000 in the same period of 2024[45]

Financial Position - Total assets increased to $83.192 billion as of September 30, 2025, compared to $82.152 billion at the end of 2024, reflecting a growth of 1.27%[20] - Total deposits slightly decreased to $65.525 billion from $65.581 billion, a decline of 0.09%[20] - Total equity rose to $9.244 billion, compared to $9.111 billion, reflecting an increase of 1.46%[20] - Preferred stock decreased from $426 million to $349 million, a decline of 18.14%[20] - The total capital surplus as of September 30, 2025, is $313 million, a decrease from $318 million at June 30, 2025[27] Loan and Lease Performance - Net loans and leases reached $62.281 billion, up from $61.750 billion, indicating an increase of 0.86%[20] - The allowance for loan and lease losses was $777 million, down from $815 million, representing a reduction of 4.66%[20] - The loan and lease portfolio is segmented into commercial and consumer categories, with specific classes including commercial, real estate, and credit card loans[64] - As of September 30, 2025, total loans and leases amounted to $63,058 million, an increase from $62,565 million on December 31, 2024, representing a growth of 0.79%[66] - The commercial and industrial loans increased to $30,475 million from $29,957 million, reflecting a rise of 1.73%[66] Income and Earnings - Net income for Q3 2025 was $266 million, an increase of 19.3% from $223 million in Q3 2024[25] - Basic earnings per common share increased to $0.50 in Q3 2025, compared to $0.40 in Q3 2024, representing a 25% growth[23] - Total interest income for Q3 2025 was $1,077 million, a decrease of 3.7% from $1,119 million in Q3 2024[22] - Net interest income after provision for credit losses increased to $679 million in Q3 2025, compared to $592 million in Q3 2024, reflecting a growth of 14.7%[22] - Net income available to common shareholders for the nine months ended September 30, 2025, was $699 million, compared to $581 million for the same period in 2024, indicating a 20.3% increase[154] Expenses and Provisions - Total noninterest expense for Q3 2025 was $550 million, up from $511 million in Q3 2024, indicating a rise of 7.6%[22] - The provision for credit losses was a reversal of $5 million in Q3 2025, compared to a provision of $35 million in Q3 2024[22] - The provision for credit losses for the nine months ended September 30, 2025, was $65 million, down from $140 million in 2024, a reduction of 53.6%[188] - Noninterest expense for the nine months ended September 30, 2025, was $1,529 million, slightly increasing from $1,527 million in 2024, reflecting a marginal rise of 0.1%[188] Investment and Securities - As of September 30, 2025, total investment securities available for sale amounted to $8.102 billion, with unrealized losses of $750 million[49] - The total unrealized losses for available-for-sale securities as of September 30, 2025, were $750 million, compared to $1.035 billion as of December 31, 2024[57] - FHN has not recorded any credit-related write-downs for AFS debt securities during the reporting periods, indicating a stable investment strategy[59] - The amortized cost of securities held to maturity was $1.229 billion, with a fair value of $1.079 billion as of September 30, 2025[53] Shareholder Actions - The company repurchased a total of $190 million in common stock during the third quarter of 2025, part of a $1 billion repurchase program initiated in October 2024[28] - Cash dividends declared for common stock amount to $77 million for the third quarter of 2025[27] - The company declared $5 million in cash dividends for preferred stock in the third quarter of 2025[27] Credit Quality and Risk Management - The concentration of credit risk shows that 22% of the commercial and industrial portfolio is sensitive to impacts on the financial services industry, with loans to mortgage and finance companies totaling $3.9 billion each[69] - The credit quality indicators reveal that as of September 30, 2025, 32,707 million in commercial loans were classified as "pass" grades (PD grades 1-12), while 1,336 million were categorized as substandard, doubtful, or loss (PD grades 14-16)[73] - Nonaccrual loans and leases are classified when full collection of principal and interest is at risk, impacting the overall loan quality[84] - The company continues to monitor loans for potential impairment and borrower-specific issues, ensuring proactive risk management[84] Macroeconomic Factors - The SEC's Climate Disclosures Rules remain uncertain due to ongoing legal challenges, impacting FHN's assessment of potential effects on financial statements[46] - The company utilized multiple macroeconomic scenarios, including a baseline scenario from Moody's, to estimate expected credit losses[115]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38990 Advantage Solutions Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or org ...