Financial Performance - Total revenues for Q3 2025 were $422.6 million, a decrease of 5.8% compared to $448.8 million in Q3 2024[14] - Net loss for Q3 2025 was $41.6 million, compared to a net loss of $27.7 million in Q3 2024, representing a 50.3% increase in losses year-over-year[16] - Gross profit for the nine months ended September 30, 2025, was $355.1 million, down from $377.2 million in the same period of 2024, reflecting a decrease of 5.9%[14] - The company reported a basic loss per share of $1.31 for Q3 2025, compared to $0.86 for Q3 2024, indicating a significant increase in loss per share[14] - Net loss for the nine months ended September 30, 2025, was $68.6 million, compared to a net loss of $51.5 million for the same period in 2024, indicating a year-over-year increase in losses of approximately 33.8%[22] Assets and Liabilities - Total assets as of September 30, 2025, were $1,431.0 million, a decrease from $1,480.4 million as of December 31, 2024[13] - Total liabilities increased to $1,428.1 million as of September 30, 2025, compared to $1,402.8 million at the end of 2024[13] - The total stockholders' equity as of September 30, 2025, is $2.9 million, a decrease from $43.9 million at June 30, 2025[19] - The accumulated deficit increased to $223.9 million as of September 30, 2025, from $181.6 million at June 30, 2025[19] Cash and Cash Equivalents - Cash and cash equivalents increased to $14.1 million as of September 30, 2025, up from $13.4 million at the end of 2024[13] - Total cash at the end of the period on September 30, 2025, was $14.1 million, compared to $14.6 million at the end of the same period in 2024[22] Expenses - Selling, general and administrative expenses for Q3 2025 were $105.9 million, a slight decrease from $110.6 million in Q3 2024[14] - Depreciation and amortization expenses for the nine months ended September 30, 2025, were $101.9 million, slightly down from $109.8 million in 2024[22] - Cash paid for interest increased to $51.9 million in 2025 from $43.8 million in 2024, representing an increase of 18.4%[22] Revenue Breakdown - New and used equipment sales for the three months ended September 30, 2025, were $211.1 million, down from $219.8 million in 2024, representing a decline of 3.1%[34] - Service revenues increased to $66.4 million for the three months ended September 30, 2025, compared to $64.6 million in 2024, reflecting a growth of 2.8%[34] - The Company recognized $17.0 million in project-based revenues for the three months ended September 30, 2025, compared to $13.1 million in 2024, marking a growth of 29.8%[38] Debt and Financing - Total debt and finance leases increased to $756.6 million as of September 30, 2025, from $705.8 million as of December 31, 2024, an increase of about 7.2%[63] - The Company was in compliance with all financial covenants set forth in its debt agreements as of September 30, 2025[63] - The effective interest rate on the ABL Facility was 5.8% as of September 30, 2025, down from 6.2% at the end of 2024[58] Divestitures - The Company divested its aerial fleet rental business for $18.0 million, resulting in a gain of $4.3 million[96] - The divestiture of the Dock and Door business generated $6.4 million, with a gain of $0.4 million recognized[97] Operating Segments - The Company has three operating segments: Material Handling, Construction Equipment, and Master Distribution, with performance evaluated using Adjusted EBITDA[99] - The Material Handling segment operates in several U.S. states and Canada, focusing on the sale, service, and rental of lift trucks and material handling equipment[100] - The Construction Equipment segment is engaged in the sale, service, and rental of construction equipment across multiple U.S. states and Canada[101] Taxation - The Company recognized income tax expense of $24.4 million for the three months ended September 30, 2025, significantly higher than the $11.6 million recognized in the same period of 2024[74] - The effective tax rate for the nine months ended September 30, 2025, was (62.6)%, compared to (10.0)% for the same period in 2024[78]

Financial Performance - Net loss for the nine months ended September 30, 2025, was $125,767,000, a reduction of 21.7% compared to a net loss of $160,572,000 for the same period in 2024[24]. - Comprehensive loss for the three months ended September 30, 2025, was $26,266,000, compared to $56,298,000 for the same period in 2024, indicating a 53.3% improvement[24]. - The company reported a net loss of $26.3 million for the three months ended September 30, 2025, compared to a net loss of $57.8 million for the same period in 2024, representing a decrease of $31.5 million[106]. - Net loss for the nine months ended September 30, 2025, was $125,767, a 21.7% improvement from a net loss of $160,572 in the same period of 2024[32]. - The company had an accumulated deficit of $835.8 million as of September 30, 2025[106]. Assets and Liabilities - Total current assets decreased from $362,264,000 as of December 31, 2024, to $245,588,000 as of September 30, 2025, a decline of approximately 32.3%[21]. - Total liabilities decreased from $92,868,000 as of December 31, 2024, to $76,294,000 as of September 30, 2025, a reduction of approximately 17.9%[21]. - Total stockholders' equity decreased from $304,081,000 as of December 31, 2024, to $200,306,000 as of September 30, 2025, a decline of approximately 34.2%[21]. - The company’s total financial assets amounted to $226,913 as of September 30, 2025, down from $339,361 as of December 31, 2024, a decrease of 33.1%[46]. - As of September 30, 2025, total accrued liabilities amounted to $8,173,000, a decrease of 33.4% from $12,353,000 as of December 31, 2024[51]. Cash Flow - Cash and cash equivalents increased from $71,188,000 as of December 31, 2024, to $93,732,000 as of September 30, 2025, representing a growth of 31.7%[21]. - Cash flows from operating activities resulted in a net cash used of $110,548 for the nine months ended September 30, 2025, compared to $107,841 in 2024, indicating a slight increase in cash outflow[32]. - Net cash provided by investing activities was $132,522 for the nine months ended September 30, 2025, compared to $101,208 in 2024, reflecting a 30.8% increase[32]. - Cash and cash equivalents at the end of the period increased to $95,214 as of September 30, 2025, up from $81,098 at the end of 2024, representing a 17.4% increase[32]. - As of September 30, 2025, the company had approximately $243.3 million in cash, cash equivalents, restricted cash, and short-term investments, which is expected to fund operations for the next 12 months[161]. Research and Development - Research and development expenses for the three months ended September 30, 2025, were $17,938,000, down 62.5% from $47,754,000 in the same period of 2024[24]. - Research and development expenses decreased by $29.8 million to $17.9 million for the three months ended September 30, 2025, primarily due to the discontinuation of the bexotegrast development in IPF[118]. - Research and development expenses for the nine months ended September 30, 2025 decreased by $36.9 million to $93.6 million, primarily due to the discontinuation of the bexotegrast development in IPF[124]. - The company discontinued the BEACON-IPF Phase 2b trial and the development of bexotegrast in idiopathic pulmonary fibrosis due to an unfavorable risk-benefit profile[36]. - The company completed enrollment in the Phase 1 trial of PLN-101095, which showed an objective response rate of 50% in the third ascending dose cohort[100]. Stock and Compensation - The number of shares used in computing net loss per share increased from 60,730,935 in Q3 2024 to 61,406,475 in Q3 2025[24]. - The company had $28.4 million of unrecognized compensation costs related to stock options expected to be recognized over a weighted-average period of 2.4 years[71]. - As of September 30, 2025, the company had $9.5 million of unrecognized stock-based compensation expense related to outstanding RSUs, expected to be recognized over a weighted-average period of 1.7 years[73]. - The company issued 61,231 shares of common stock under the 2020 ESPP during the three months ended September 30, 2025[77]. - For the three months ended September 30, 2025, total stock-based compensation expense was $6.418 million, a decrease from $8.899 million in the same period of 2024[79]. Debt and Interest - The company drew an additional Term Loan of $20 million in March 2024, increasing the total Term Loan facility to $150 million[52]. - The effective interest rate for the Term Loan was 10.61% for the three months ended September 30, 2025, compared to 11.57% for the same period in 2024[57]. - Interest expense for the three months ended September 30, 2025, was $0.8 million, a slight decrease from $0.9 million in the same period of 2024[57]. - Cash paid for interest increased to $2,192 for the nine months ended September 30, 2025, compared to $1,850 in 2024, reflecting an increase of 18.5%[32]. - Interest expense increased by $0.2 million due to additional borrowings under the Amended Loan Agreement[128]. Operational Challenges - The company expects to continue incurring net losses for the foreseeable future as it advances its product candidates[106]. - The company requires substantial additional capital to fund operations and may be forced to delay or eliminate research and drug development programs if unable to raise capital on acceptable terms[160]. - Clinical development is a lengthy and expensive process, with the potential for significant setbacks, as demonstrated by the discontinuation of the BEACON-IPF trial and the development of bexotegrast in IPF[173]. - The company may experience fluctuations in quarterly operating results due to competing technological developments and the costs associated with establishing sales and marketing capabilities[163]. - The company faces significant risks in clinical trials, with most product candidates that commence trials never receiving approval[174]. Market and Regulatory Environment - The company has no products approved for commercial sale and has not generated any revenue from product sales to date, indicating a high dependency on the success of product candidates[166]. - Market acceptance of product candidates is crucial for commercial success, and lack of acceptance may hinder revenue generation and profitability[215]. - Coverage and reimbursement from third-party payors, including government programs like Medicare and Medicaid, are critical for new product acceptance and sales[217]. - There is significant uncertainty regarding the coverage and reimbursement status of products, which may affect their marketability[217]. - The FDA's evolving regulatory standards can complicate the approval process, making it difficult to predict outcomes[176].

Financial Performance - Net sales increased 9.4% in Q4 2025 to $380.8 million, compared to $348.2 million in Q4 2024[2] - Adjusted EBITDA for Q4 2025 was $91.8 million, a 26.6% increase from $72.5 million in Q4 2024, with an adjusted EBITDA margin of 24.1%[10] - Net income for Q4 2025 rose to $52.6 million, a 426.0% increase from $10.0 million in Q4 2024, resulting in a net income margin of 13.8%[9] - The company reported adjusted net income per diluted share of $0.38 in Q4 2025, a 72.7% increase from $0.22 in Q4 2024[2] - Gross profit for the year ended September 30, 2025, was $516.7 million, representing a 12.5% increase from $459.0 million in 2024[40] - Net income for the year ended September 30, 2025, was $191.7 million, compared to $115.9 million in 2024, reflecting a 65.3% increase[40] - The company reported a net income per diluted share of $1.22 for the year ended September 30, 2025, compared to $0.74 in 2024[40] - The gross profit for 2025 was $516.7 million, with a gross profit margin of 36.2%, compared to $459.0 million and a margin of 34.9% in 2024[47][49] - Operating income for 2025 was $260.6 million, reflecting an operating margin of 18.2%, up from an operating income of $181.7 million and a margin of 13.8% in 2024[47][49] - The company reported a net income of $191.7 million for 2025, resulting in a net income margin of 13.4%, compared to a net income of $115.9 million and a margin of 8.8% in 2024[47][49] - Adjusted EBITDA for 2025 was $326.2 million, with an adjusted EBITDA margin of 22.8%, compared to $284.7 million and a margin of 21.7% in 2024[47][49] Guidance and Projections - Fiscal 2026 net sales guidance is projected between $1,450 million and $1,470 million, reflecting a 1.4% to 2.8% increase compared to the prior year[23] - Fiscal 2026 adjusted EBITDA is expected to be between $345 million and $350 million, representing a 5.8% to 7.3% increase year-over-year[24] Cash Flow and Capital Expenditures - Free cash flow for the fiscal year was $172.0 million, a decrease of $19.4 million compared to $191.4 million in the prior year[21] - Free cash flow for the quarter ended September 30, 2025, was $69.0 million, compared to $69.9 million in the same quarter of 2024, a slight decrease of 1.3%[44][45] - Capital expenditures for the quarter ended September 30, 2025, totaled $14.5 million, compared to $19.4 million in the same quarter of 2024, a decrease of 25.2%[44][45] - Capital expenditures for 2025 totaled $47.3 million, reflecting ongoing investments in operational capabilities[47][49] - The company plans to invest between $60 million and $65 million in capital expenditures for fiscal 2026[27] Balance Sheet and Debt - Total debt outstanding as of September 30, 2025, was $451.6 million, with a net debt leverage ratio of 0.1x[22] - Total assets as of September 30, 2025, were $1,838.9 million, an increase from $1,635.9 million as of September 30, 2024[38] - Total liabilities increased to $857.2 million as of September 30, 2025, compared to $825.8 million in 2024[38] - Cash and cash equivalents rose to $431.5 million as of September 30, 2025, up from $309.9 million in 2024[38] - The debt leverage ratio for 2025 was 1.4x, while the net debt leverage ratio was 0.1x, indicating a strong balance sheet position[48] Tax and Other Charges - Cash paid for income taxes, net, for the year ended September 30, 2025, was $69.1 million, down from $74.4 million in 2024, a decrease of 7.0%[43] - Strategic reorganization and other charges for the year ended September 30, 2025, amounted to $8.8 million, down from $15.8 million in 2024[40] - The effective tax rate for adjusting items was 24.6% in 2025, which may be subject to rounding[48]

Revenue Performance - Total revenues for Q3 2025 reached $59.446 million, a significant increase from $23.310 million in Q3 2024, representing a growth of 155.5%[18] - Total revenues for Q3 2025 were $30,815,000, compared to $23,310,000 in Q3 2024, marking an increase of 32%[206] - Total revenues for the nine months ended September 30, 2025, were $235.105 million, compared to $73.468 million for the same period in 2024, representing a significant increase[207] - Revenues from the United States for the nine months ended September 30, 2025, were $186,665,000, up from $78,027,000 in 2024, indicating a 139% growth[209] - Total revenues for Benchmark for the nine months ended September 30, 2025, were $47,799,000, up 50.0% from $31,843,000 in the same period of 2024[70] Segment Performance - Intellectual property operations generated $7.795 million in revenue for Q3 2025, compared to $486 thousand in Q3 2024, marking a substantial increase of 1,505%[18] - Energy operations reported revenues of $14.176 million in Q3 2025, slightly down from $15.817 million in Q3 2024, a decrease of 10.4%[18] - Manufacturing operations contributed $30.815 million in revenue for Q3 2025, with no revenue reported in Q3 2024[18] - The energy operations segment generated $47.799 million in revenue for the nine months ended September 30, 2025, compared to $31.843 million in 2024, reflecting a growth of approximately 50%[207] - Printronix's net revenues for the three months ended September 30, 2025, were $6,660,000, a decrease from $7,007,000 in 2024[60] Financial Position - The net loss attributable to Acacia Research Corporation for Q3 2025 was $2.730 million, an improvement from a net loss of $13.996 million in Q3 2024[18] - Total assets increased to $768.871 million as of September 30, 2025, up from $756.394 million as of December 31, 2024, reflecting a growth of 1.9%[15] - Total liabilities decreased to $192.033 million as of September 30, 2025, down from $203.775 million as of December 31, 2024, a reduction of 5.8%[15] - Stockholders' equity rose to $576.838 million as of September 30, 2025, compared to $552.619 million as of December 31, 2024, an increase of 4.4%[15] - The company reported a net income before income taxes of $25.357 million for the nine months ended September 30, 2025, compared to a loss of $23.348 million in 2024[207] Cash Flow and Investments - Cash flows from operating activities for the nine months ended September 30, 2025, were $62.1 million, compared to $70.4 million in 2024, indicating a decrease of approximately 11.0%[23] - The company reported a net cash used in investing activities of $14.7 million for the nine months ended September 30, 2025, compared to $117.1 million in 2024, reflecting a significant reduction in investment outflows[23] - The company invested $10.0 million to acquire a 50.4% equity interest in Benchmark Energy II, LLC, which is engaged in oil and gas asset acquisition and development[35] - The company completed the acquisition of Deflecto Acquisition, Inc. for an aggregate consideration of $103.7 million, funded by a $48.0 million secured term loan and cash on hand[38] Shareholder Equity and Stock Activity - The company issued 15,385 shares of common stock for unvested restricted stock awards during the three months ended September 30, 2025[19] - The company repurchased 1,537,122 shares of common stock, resulting in a treasury stock balance of $(118,542,000) as of September 30, 2025[21] - The net loss attributable to common stockholders for Q3 2025 was $(2,730,000), compared to a net loss of $(13,996,000) in Q3 2024, showing an improvement of 80%[195] - As of September 30, 2025, there were 12,179,045 shares of common stock available for grant under the 2024 Acacia Research Corporation Stock Incentive Plan[188] Legal and Compliance Matters - The Company is subject to various legal claims, but management believes that any potential liability will not materially affect its financial position[170] - Acacia settled the AIP Matter for a payment of $14.5 million during the year ended December 31, 2024, with an additional non-recurring legal expense of $12.9 million[174] - The Company agreed to appoint at least two independent directors to the Board until May 12, 2026, with current members satisfying this requirement[152] Strategic Partnerships and Future Outlook - Acacia's investment strategy focuses on acquiring businesses with a total enterprise value of $1 billion or less, targeting those with stable cash flow generation and scalability[27] - The company anticipates continued growth in revenues driven by market expansion and new product developments in the upcoming quarters[213] - Acacia's relationship with Starboard Value, LP provides access to industry expertise and operational partners to evaluate acquisition opportunities and enhance value creation[28]

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: 001-37390 Global Net Lease, Inc. (Exact name of registrant as specified in its charter) Maryland 45-277197 ...

Exhibit 99.2 Table of Contents | | | | | | | Page | | --- | --- | --- | --- | --- | --- | --- | | Glossary | of Terms | | | | | 4 | | Company | Overview | | | | | 6 | | Financial | and Portfolio | Overview | | | | 7 | | Financial | and Operating | Results | | | | 8 | | Financial | Summary | | | | | | | Consolidated | Balance | Sheets | | | | 14 | | Consolidated | Statements | of | Operations | | | 15 | | Reconciliation | of | Non-GAAP | Measures | | | 16 | | Debt | Summary | | | | | 19 | | Portfolio | Summa ...

Exhibit 99.2 Table of Contents | | | | | | | Page | | --- | --- | --- | --- | --- | --- | --- | | Glossary | of Terms | | | | | 4 | | Company | Overview | | | | | 6 | | Financial | and Portfolio | Overview | | | | 7 | | Financial | and Operating | Results | | | | 8 | | Financial | Summary | | | | | | | Consolidated | Balance | Sheets | | | | 14 | | Consolidated | Statements | of | Operations | | | 15 | | Reconciliation | of | Non-GAAP | Measures | | | 16 | | Debt | Summary | | | | | 19 | | Portfolio | Summa ...

Financial Performance - Total revenue for the first quarter of fiscal 2026 was $2.14 billion, a 2% increase from $2.10 billion in the prior year, driven by growth in Dow Jones and Digital Real Estate Services segments[8]. - Net income from continuing operations was $150 million, a 1% increase compared to $149 million in the prior year, while Total Segment EBITDA rose 5% to $340 million[5]. - Adjusted EPS increased to $0.22 from $0.20 in the prior year, while reported EPS from continuing operations decreased to $0.20 from $0.21[12]. - Total revenues for the three months ended September 30, 2025, were $2,144 million, compared to $2,096 million in the prior year, marking an increase of 2.3%[46]. - Net income attributable to News Corporation stockholders for the same period was $112 million, down from $119 million, a decrease of 5.9%[46]. - The company reported net cash provided by operating activities from continuing operations of $85 million for the three months ended September 30, 2025, compared to $26 million in the prior year, an increase of 226.9%[52]. - Total Segment EBITDA for Q3 2025 was $340 million, a 5% increase from $325 million in Q3 2024[55]. - Adjusted Revenues for Q3 2025 were $2,128 million, up 2% from $2,092 million in Q3 2024[59]. - Adjusted Total Segment EBITDA for Q3 2025 was $347 million, reflecting a 5% increase from $329 million in Q3 2024[61]. - For the three months ended September 30, 2025, net income attributable to News Corporation stockholders from continuing operations was $112 million, with diluted EPS of $0.20, compared to $118 million and $0.21 for the same period in 2024[65]. Revenue Breakdown - Dow Jones revenues increased by 6% to $586 million, supported by a 16% growth in Risk & Compliance revenues[15]. - Digital Real Estate Services revenues rose 5% to $479 million, with Move's revenues increasing 9% to $152 million, marking the highest quarterly growth since Q2 fiscal 2022[20][23]. - Book Publishing segment revenues decreased by 2% to $534 million, impacted by a $13 million write-off of a customer receivable[24][26]. - News Media revenues increased by 1% to $545 million, driven by higher circulation and subscription revenues[27]. - Dow Jones segment reported Adjusted Revenues of $579 million, a 5% increase from $552 million in Q3 2024[61]. - Digital Real Estate Services segment saw Adjusted Revenues rise by 7% to $485 million from $455 million in Q3 2024[61]. - Book Publishing segment's Adjusted Revenues decreased by 4% to $522 million from $546 million in Q3 2024[61]. - News Media segment reported Adjusted Revenues of $542 million, a slight increase of 1% from $539 million in Q3 2024[61]. Cash Flow and Expenditures - Free cash flow improved to $4 million from a negative $49 million in the prior year, primarily due to higher cash provided by operating activities[32]. - Cash and cash equivalents as of September 30, 2025, were $2,198 million, down from $2,403 million at the end of the previous quarter, a decrease of 8.5%[49]. - The company incurred capital expenditures of $81 million for the three months ended September 30, 2025, compared to $75 million in the prior year, an increase of 8.0%[52]. Digital Performance - Digital revenues accounted for 68% of total advertising revenues, with digital-only subscriptions to Dow Jones' consumer products growing 10% to nearly 5.9 million[18][19]. - As of September 30, 2025, News Corp Australia had 1,162,000 closing digital subscribers, up from 1,127,000 the previous year, representing a growth of 3.1%[35]. - The Times and Sunday Times reported 640,000 closing digital subscribers, an increase from 600,000 year-over-year, reflecting a growth of 6.7%[35]. - The Sun's digital offering reached 77 million global monthly unique users in September 2025, down from 80 million in the prior year, a decrease of 3.8%[35]. - New York Post's digital network had 94 million unique users in September 2025, down from 103 million the previous year, a decrease of 8.7%[35]. Currency Impact and Adjustments - The impact of foreign currency fluctuations on revenues was a decrease of $4 million in Q3 2025 compared to the previous year[59]. - Constant currency revenues are used by management to provide a clearer view of the company's core business performance, excluding the effects of foreign currency fluctuations[67][68]. - Impairment and restructuring charges amounted to $19 million, impacting adjusted EPS by $0.03 for the three months ended September 30, 2025[65]. - The company reported a tax impact of $7 million on the above items, resulting in an adjusted net income of $122 million and adjusted EPS of $0.22[65]. - Adjusted EPS for the company is calculated excluding certain non-operational items, providing a clearer view of operational performance[64].

Financial Performance - Total revenue for the first quarter of fiscal 2026 was $2.14 billion, a 2% increase from $2.10 billion in the prior year, driven by growth in Dow Jones and Digital Real Estate Services segments[8]. - Net income from continuing operations was $150 million, a 1% increase compared to $149 million in the prior year, with Total Segment EBITDA rising 5% to $340 million[5]. - Adjusted EPS increased to $0.22 from $0.20 in the prior year, while reported EPS from continuing operations decreased to $0.20 from $0.21[12]. - Net income attributable to News Corporation stockholders for the three months ended September 30, 2025, was $112 million, a decrease of 5.9% from $119 million in the prior year[46]. - Net income from continuing operations for Q3 2025 was $150 million, a marginal increase of 1% from $149 million in Q3 2024[55]. - Adjusted net income for Q1 Fiscal 2026 was $122 million, compared to $117 million in Q1 Fiscal 2025, resulting in adjusted EPS of $0.22 versus $0.20[65]. Revenue Segments - Dow Jones revenues increased by 6% to $586 million, supported by a 16% growth in Risk & Compliance revenues[15]. - Digital Real Estate Services revenues rose 5% to $479 million, with Move's revenues increasing 9% to $152 million, marking the highest quarterly growth since Q2 fiscal 2022[20][23]. - Book Publishing segment revenues decreased by 2% to $534 million, impacted by a $13 million write-off of a customer receivable[24][26]. - News Media revenues increased by 1% to $545 million, driven by higher circulation and subscription revenues[27]. - Adjusted Revenues for Q3 2025 were $2,128 million, up 2% from $2,092 million in Q3 2024[59]. - Dow Jones segment reported Adjusted Revenues of $579 million, a 5% increase from $552 million in Q3 2024[61]. - Digital Real Estate Services segment saw Adjusted Revenues rise by 7% to $485 million from $455 million in Q3 2024[61]. - Book Publishing segment's Adjusted Revenues decreased by 4% to $522 million from $546 million in Q3 2024[61]. - News Media segment reported Adjusted Revenues of $542 million, a slight increase of 1% from $539 million in Q3 2024[61]. Cash Flow and Expenses - Free cash flow improved to $4 million from $(49) million in the prior year, primarily due to higher cash provided by operating activities[32]. - Operating expenses for the three months ended September 30, 2025, were $941 million, a decrease of 1.2% compared to $952 million in the prior year[46]. - The company reported a net cash used in financing activities from continuing operations of $179 million for the three months ended September 30, 2025, compared to $109 million in the prior year[52]. Digital and Advertising Performance - Digital revenues accounted for 68% of total advertising revenues, with a 2% increase in digital advertising offset by a 4% decrease in print advertising[18]. - Digital subscribers at News Corp Australia reached 1,162,000 as of September 30, 2025, up from 1,127,000 in the prior year, representing a growth of 3.1%[35]. - The Times and Sunday Times closing digital subscribers increased to 640,000, compared to 600,000 in the prior year, reflecting a growth of 6.7%[35]. - Advertising revenues for Q1 Fiscal 2026 were $317 million, a slight decrease from $321 million in Q1 Fiscal 2025, showing a 1% decline[69]. Asset and Cash Position - Cash and cash equivalents as of September 30, 2025, were $2,198 million, down from $2,403 million as of June 30, 2025, indicating a decrease of 8.5%[49]. - Total assets as of September 30, 2025, were $15,343 million, a decrease from $15,504 million as of June 30, 2025, reflecting a decline of 1.0%[49]. Currency Impact - The impact of foreign currency fluctuations on revenues was a decrease of $4 million in Q3 2025 compared to the previous year[59]. - Constant currency revenues for total revenues in Q1 Fiscal 2026 showed a 2% increase compared to the previous year, indicating stable performance despite foreign currency fluctuations[68]. - The company emphasizes the importance of constant currency revenues for assessing core business performance, excluding the impact of currency volatility[67].

Financial Performance - Third-quarter 2025 net sales were $305.9 million, a 35% increase compared to $227.2 million in the same quarter last year[6][4] - Net income for the third quarter was $8.1 million, or $0.19 per diluted share, compared to a net loss of $5.9 million in the same quarter last year[2][4] - Adjusted EBITDA for the third quarter was $29.0 million, reflecting a sequential improvement from $26.5 million in the second quarter of 2025[2][3][12] - Gross profit for Q3 2025 was $35.0 million, compared to $12.1 million in Q3 2024, reflecting a significant improvement[23] - Net income for the nine months ended September 30, 2025, was $13.1 million, down from $22.7 million in the same period of 2024[23] - Basic earnings per share for Q3 2025 were $0.19, compared to a loss of $0.13 per share in Q3 2024[23] - Adjusted net income for Q3 2025 was $12.0 million, compared to an adjusted net loss of $4.4 million in Q3 2024[32] - For the nine months ended September 30, 2025, the company reported an adjusted net income of $23.6 million, with adjusted diluted earnings per share of $0.55, compared to $28.4 million and $0.62 for the same period in 2024[43] - The company reported a net income of $13.1 million for the nine months ended September 30, 2025, compared to $22.7 million for the same period in 2024[43] Cash Flow and Liquidity - Operating cash flow for the third quarter was $22.0 million, with total liquidity of $436.9 million as of September 30, 2025[7][9] - Total cash, cash equivalents, and restricted cash at the end of Q3 2025 was $192.2 million, compared to $255.9 million at the end of Q3 2024[26] - The company’s cash and cash equivalents decreased to $191.5 million as of September 30, 2025, down from $240.7 million at the end of 2024[69] Expenses and Charges - Selling, general & administrative expenses (SG&A) increased to $24.5 million in Q3 2025 from $22.5 million in Q3 2024[23] - The company incurred restructuring charges of $2.7 million in Q3 2025, with no such charges reported in Q3 2024[23] - The company incurred restructuring charges of $2.7 million and IT transformation costs of $2.9 million during the nine months ended September 30, 2025[43] - Annual shutdown maintenance planned for the fourth quarter will incur approximately $11 million in costs, impacting melt utilization rates[14][14] Operational Metrics - Ship tons for the third quarter were 163,100, a 36% increase compared to the prior-year third quarter, but a 3% decrease sequentially[12][12] - The company reported a total of 163.1 thousand ship tons for Q3 2025, compared to 119.9 thousand ship tons in Q3 2024, indicating a 36.0% increase in volume[66] - Total ship tons for the nine months ended September 30, 2025, were 483.7 thousand, up from 425.3 thousand in the same period of 2024, representing a 13.7% increase[67] Investments and Capital Expenditures - The company invested $28.4 million in capital expenditures during the third quarter, including $22.0 million for government-funded projects[9][14] - Capital expenditures in Q3 2025 totaled $6.4 million, down from $11.8 million in Q3 2024[28] Future Outlook - The company expects fourth-quarter adjusted EBITDA to be lower than the third quarter due to normal seasonality and potential global supply chain challenges[12][12] - Metallus secured new 2026 programs with key customers in the aerospace and defense market, targeting an annual run rate of $250 million in total sales by mid-2026[14][14] Balance Sheet Highlights - Total assets increased to $1,150.4 million in 2025 from $1,116.7 million in 2024, representing a growth of approximately 3.0%[25] - Total liabilities rose to $452.7 million in 2025 from $426.2 million in 2024, an increase of approximately 6.2%[25] - Shareholders' equity reached $697.7 million in 2025, compared to $690.5 million in 2024, showing a slight increase of approximately 1.7%[25] - Accounts receivable, net of allowances, stood at $129.3 million in 2025, up from $90.8 million in 2024, indicating a significant increase of about 42.5%[25] - Inventories, net increased to $237.5 million in 2025 from $219.8 million in 2024, reflecting a growth of approximately 8.0%[25] Debt and Interest - Interest expense, net, decreased to $(1.4) million in Q3 2025 from $(2.4) million in Q3 2024[23] - The company reported a loss on extinguishment of debt of $3.6 million for the nine months ended September 30, 2025[23] - The company recognized a loss of $3.6 million from the distribution of surplus assets following the completion of the salaried pension plan annuitization in May 2024[50] Strategic Initiatives - The company is focusing on targeted growth through acquisitions as part of its business transformation strategy[35] - The company is undergoing a multi-year IT transformation initiative aimed at reducing operating costs and improving efficiency[36] - The company is undergoing a multi-year IT transformation initiative aimed at modernizing legacy systems and reducing operating costs[59] - Business transformation costs include professional service fees for evaluating strategic opportunities to diversify the company's end market and product portfolio through acquisitions[58] - The company offered an exit incentive program to certain employees to support succession planning and sustainable profitable growth strategy[45]