Financial Performance - Third-quarter 2025 net sales were $305.9 million, a 35% increase from $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 prior-year quarter[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] 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] - Free cash flow for Q3 2025 was $15.6 million, compared to a negative free cash flow of $27.1 million in Q3 2024[28] - 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 received $10.0 million in funding from the U.S. Army in Q3 2025, contributing to its cash flow[28] - 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] - Total liquidity as of September 30, 2025, was $436.9 million, slightly down from $458.6 million at the end of 2024[69] Capital Expenditures and Investments - The company invested $28.4 million in capital expenditures during the third quarter, including $22.0 million for U.S. government-funded projects[9][14] - Capital expenditures in Q3 2025 totaled $6.4 million, down from $11.8 million in Q3 2024[28] Operational Metrics - Ship tons decreased by 3% sequentially to 163,100 tons, but increased by 36% compared to the prior-year third quarter[12] - The total ship tons for the three months ended September 30, 2025, were 163.1 thousand, compared to 119.9 thousand in 2024, reflecting a 36.0% increase[66] - The company reported a total of 483.7 thousand ship tons for the nine months ended September 30, 2025, an increase from 425.3 thousand tons in 2024, representing a growth of 13.7%[67] 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] Debt and Liabilities - The company reported a loss on extinguishment of debt of $3.6 million for the nine months ended September 30, 2025[23] - Total liabilities increased to $452.7 million in 2025 from $426.2 million in 2024, an increase of 6.2%[25] - Current liabilities rose to $305.4 million in 2025 from $281.5 million in 2024, an increase of 8.5%[25] Shareholder Equity - Shareholders' equity increased to $697.7 million in 2025 from $690.5 million in 2024, a growth of 1.7%[25] - Retained deficit improved to $(39.3) million in 2025 from $(52.4) million in 2024, a reduction of 25.5%[25] Business Strategy and 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][13] - 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] - 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 IT systems and reducing operating costs[59] Market Conditions - The company reported a net loss of $5.9 million for the third quarter of 2024, reflecting a challenging market environment[55] - The company aims to enhance clarity of core pricing and results by presenting net sales adjusted to exclude surcharges, which can introduce volatility[63]

Financial Performance - Revenues for Q3 2025 were $0.1 million, all derived from the paltusotine licensing agreement, compared to no revenues in Q3 2024[11] - The net loss for Q3 2025 was $130.1 million, compared to a net loss of $76.8 million in Q3 2024[11] - Crinetics' accumulated deficit reached $1.29 billion as of September 30, 2025[16] Expenses - Research and development expenses increased to $90.5 million in Q3 2025 from $61.9 million in Q3 2024, primarily due to a $10.9 million rise in personnel costs and a $10.2 million increase in clinical and manufacturing activities[11] - Selling, general and administrative expenses rose to $52.3 million in Q3 2025 from $25.9 million in Q3 2024, driven by a $10.2 million increase in personnel costs and a $12.0 million rise in outside services costs[11] - Cash, cash equivalents, and investments totaled $1.1 billion as of September 30, 2025, down from $1.4 billion as of December 31, 2024, with a projected cash burn of $340-370 million for 2025[11] Product Developments - Palsonify was approved by the FDA on September 25, 2025, for the treatment of adults with acromegaly, with over 95% of top priority healthcare providers contacted[5][11] - Approximately 95% of filled prescriptions for Palsonify are from switch patients, with 50% of prescriptions reimbursed[5] - Crinetics expects to randomize the first patients in the CAREFNDR Phase 3 trial of paltusotine in carcinoid syndrome in Q4 2025[6] - The company anticipates sharing glucocorticoid reduction data from the Phase 2 study of atumelnant in early 2026[6]

Financial Performance - Q3 2025 net sales reached $943.4 million, a slight increase from $931.8 million in Q3 2024, representing a 1.4% growth[121] - Gross profit margin for Q3 2025 was 50.0%, consistent with Q3 2024, while operating income decreased to $67.4 million from $112.5 million, reflecting a decline in operating margin[121] - Net sales for Q3 2025 were $943.4 million, a 1% increase from $931.8 million in Q3 2024, with constant currency net sales also reflecting a 1% increase[122] - The Columbia brand net sales reached $803.9 million, a slight increase of 1% compared to $799.7 million in the same period last year[122] - Gross profit for Q3 2025 was $471.8 million, representing a 1% increase from $467.6 million in Q3 2024, with a gross margin of 50.0%, down 20 basis points year-over-year[124] - For the nine months ended September 30, 2025, total net sales were $2.33 billion, a 2% increase from $2.27 billion in the same period of 2024[131] - U.S. net sales decreased by $24.6 million, or 4%, to $546.7 million for the three months ended September 30, 2025, compared to $571.3 million in 2024[141] - Total segment operating income decreased by $12.2 million to $179.2 million for the three months ended September 30, 2025, compared to $191.4 million in 2024[142] - U.S. segment operating income decreased by $31.5 million to $180.3 million, representing 13.3% of net sales for the nine months ended September 30, 2025, down from 15.3% in 2024[152] - U.S. net sales decreased by $33.0 million, or 2%, for the nine months ended September 30, 2025, primarily due to declines in DTC brick-and-mortar and e-commerce businesses[152] Cost Management - The Profit Improvement Program achieved approximately $90 million in annualized cost savings in 2024, with cumulative savings exceeding $150 million by Q3 2025[103] - Selling, general and administrative expenses increased to 40.4% of net sales in Q3 2025, up from 38.8% in Q3 2024[121] - SG&A expenses increased by 5% to $380.9 million in Q3 2025, up from $361.2 million in Q3 2024, with SG&A as a percentage of net sales rising to 40.4%[125] - Unallocated corporate expenses increased by $33.0 million to $111.8 million in the third quarter of 2025, primarily due to $29.0 million of impairment charges[149] - Unallocated corporate expenses increased by $26.1 million to $253.2 million for the nine months ended September 30, 2025, primarily due to impairment charges related to Mountain Hardwear and prAna[156] Strategic Initiatives - The ACCELERATE Growth Strategy aims to attract younger consumers and enhance brand perception, with new product launches like the Amaze Puff[99] - The company continues to focus on enhancing consumer experiences and marketplace excellence through digital and omni-channel strategies[101] - The Columbia brand's U.S. direct-to-consumer e-commerce channel experienced reduced sales year-over-year as part of a strategic repositioning[105] - The company plans to increase U.S. pricing by a high-single digit percentage for Spring 2026 to offset higher tariffs[113] - The Columbia brand's wholesale sales in the U.S. are expected to decline for the full year 2025 and into the first half of 2026[105] Impairment and Charges - The company recognized $29.0 million in impairment charges during Q3 2025, primarily related to the prAna and Mountain Hardwear brands[125] - The prAna trade name recorded an impairment charge of $8.0 million, with a fair value less than its carrying value of $51.8 million[178] - The prAna reporting unit had a fair value less than its carrying value of $12.2 million, leading to an impairment charge of $8.8 million[179] - The Mountain Hardwear reporting unit recorded a full impairment charge of $12.2 million, reflecting its carrying value[179] Tax and Interest - The effective income tax rate for Q3 2025 increased to 26.7%, up from 24.4% in Q3 2024, primarily due to non-deductible impairment charges[128] - Income tax expense decreased by $12.4 million, or 33%, to $25.2 million for the nine months ended September 30, 2025, compared to $37.6 million in 2024[138] - Interest income, net decreased by 46% to $2.9 million in Q3 2025, down from $5.4 million in Q3 2024, reflecting lower yields on cash and investments[127] Segment Performance - LAAP segment net sales increased by $8.4 million, or 6%, for the third quarter of 2025, driven primarily by distributor and China businesses[146] - EMEA segment net sales increased by $22.7 million, or 16%, for the third quarter of 2025, attributed to robust demand across wholesale and DTC channels[147] - Canada segment net sales increased by $5.2 million, or 6%, for the third quarter of 2025, primarily driven by the wholesale business[148] - EMEA segment gross margin expanded to 49.7% for the third quarter of 2025, up from 49.6% in 2024[147] - LAAP segment operating income increased by $6.1 million to $54.5 million, or 13.4% of net sales, driven by a 9% increase in net sales for the nine months ended September 30, 2025[153] - EMEA segment operating income increased by $12.0 million to $78.8 million, or 19.6% of net sales, with net sales rising by $52.3 million, or 15% for the nine months ended September 30, 2025[154] - Canada segment operating income decreased by $3.7 million to $29.8 million, or 18.2% of net sales, despite a 1% increase in net sales for the nine months ended September 30, 2025[155] Cash Flow and Liquidity - Cash flows from operating activities showed a net cash outflow of $333.4 million for the nine months ended September 30, 2025, compared to an outflow of $76.6 million in 2024[160] - As of September 30, 2025, cash and cash equivalents were $228.8 million, down from $531.9 million as of December 31, 2024[163] - The company plans full-year 2025 capital expenditures of approximately $65 to $75 million, focusing on DTC operations and supply chain capabilities[170] - Inventory purchase obligations were $404.2 million as of September 30, 2025, down from $473.0 million as of December 31, 2024[172] Market Risks - Incremental tariffs on imports are expected to impact financials by approximately $35 to $40 million in 2025, with an annualized impact of around $160 million based on 2024 import levels[108] - A 10% unfavorable exchange rate change in various currencies against the U.S. dollar could lead to a decline in net fair value by approximately $94.0 million[184] - The company employs currency forward contracts to manage foreign exchange rate risks associated with anticipated cash flows[183] - The impairment tests are based on assumptions regarding projected net sales, income, cash flows, and discount rates, which may change due to economic conditions[180] - The company does not engage in speculative trading in financial or capital markets, focusing instead on risk mitigation[182] - There have been no material changes in market risk disclosures since the last annual report[185]

Financial Performance - In Q3 2025, net interest income increased by 12.9% compared to Q3 2024, driven by a $9.2 million rise in interest income and an $8.1 million increase in interest expense, resulting in a net growth of $1.2 million[149]. - Distributable Earnings for the three months ended September 30, 2025, were a gain of $0.5 million, compared to a loss of $3.4 million for the same period in 2024[159]. - Total comprehensive income for the three months ended September 30, 2025, was $15.1 million, compared to $33.9 million for the same period in 2024[166]. - Total comprehensive income for the nine months ended September 30, 2025, was $35.2 million, compared to $48.3 million in 2024[175]. - Cash flows used in operating activities were $354.5 million for the nine months ended September 30, 2025, compared to $196.4 million for the same period in 2024, primarily due to increased residential mortgage loan purchases[283]. Interest Income and Expense - Interest income for the three months ended September 30, 2025, was $36.7 million, an increase from $27.4 million in the same period of 2024[166]. - Total interest income for the nine months ended September 30, 2025, was $104.6 million, up from $78.6 million in 2024, while total interest expense increased to $74.4 million from $51.5 million[177]. - Total interest expense for the three months ended September 30, 2025, was $2.4 million, compared to $993,399 for the same period in 2024[274]. Asset Valuation and Portfolio - The 30-year fixed residential conforming mortgage rates decreased by 47 basis points to 6.30% by the end of Q3 2025, positively impacting the valuation of the company's portfolio[148]. - The weighted average price of the residential whole loans portfolio increased by approximately 63 basis points in Q3 2025 compared to Q2 2025, indicating a positive trend in asset pricing[148]. - The fair value of residential mortgage loans in securitization trusts was $1.862 billion as of September 30, 2025, with an unpaid principal balance of $1.893 billion and a weighted average loan coupon of 5.78%[203]. - As of September 30, 2025, the total portfolio consisted of approximately $2.5 billion in residential mortgage loans, RMBS, and other target assets, with a significant portion located in disaster-prone states[186]. Equity and Book Value - Total stockholders' equity increased to $264.2 million as of September 30, 2025, up from $239.0 million as of December 31, 2024[163]. - Book value per share of common stock rose to $10.60 as of September 30, 2025, compared to $10.17 as of December 31, 2024[163]. - Economic book value per share of common stock decreased to $12.72 as of September 30, 2025, from $13.10 as of December 31, 2024[165]. Financing and Borrowing - The company entered into a $200.0 million repurchase facility with Global Investment Bank 4 on October 6, 2025[155]. - The company maintained a total borrowing capacity of $1.1 billion as of September 30, 2025[155]. - The total unused borrowing capacity as of September 30, 2025, was $707.4 million, with specific lines having available financing of $347.9 million, $249.9 million, and $109.6 million respectively[254]. - The company utilized loan financing lines to acquire mortgage loans pending securitization, locking in funding costs through fixed-rate term securitization[226]. Securitization Activities - The company issued AOMT 2025-10, a securitization backed by residential mortgage loans with an unpaid principal balance of approximately $274.3 million, using proceeds to repay $237.4 million in outstanding debt[259]. - In the securitization transaction AOMT 2025-6, the company retained approximately $8.1 million, including a premium of $2.7 million, and repaid $73.1 million in outstanding debt[260]. - The company incurred securitization costs of $1.9 million for the nine months ended September 30, 2025, compared to $1.6 million in the same period of 2024[184]. Delinquency and Credit Quality - The percentage of loans 90+ days delinquent based on unpaid principal balance was 1.7% for residential mortgage loans held in securitization trusts as of September 30, 2025[203]. - The 90+ day delinquency rate as a percentage of UPB dropped to 0.2% in 2025, down from 2.3% in 2024[211]. - The weighted average credit score at loan origination for residential mortgage loans was 757 as of September 30, 2025[189]. Management and Operating Expenses - Operating expenses for the quarter ended September 30, 2025, decreased to $1.1 million from $1.5 million in 2024, attributed to lower acquisition costs of whole loans[171]. - Operating expenses for the nine months ended September 30, 2025, decreased to $3.7 million from $5.3 million in 2024, reflecting a reduction of approximately 30% due to cost-saving measures[181]. - Management fees incurred with affiliates remained stable at $1.2 million for both the quarter ended September 30, 2025, and 2024[174]. Future Outlook - The company expects to continue purchasing newly originated loans and HELOCs to support overall portfolio valuations and securitization execution going forward[148]. - The company anticipates two more interest rate cuts in 2025, although the recent government shutdown has introduced uncertainty regarding future rate paths[146].

Financial Performance - Net income attributable to One Liberty Properties increased by 102.4% year-over-year to $10.5 million, or $0.48 per diluted share[5]. - Total revenues for the three months ended September 30, 2025, increased to $23,771,000, up 7.0% from $22,211,000 in the same period of 2024[27]. - Operating income for the nine months ended September 30, 2025, rose to $40,837,000, a 18.5% increase compared to $34,403,000 in 2024[27]. - Net income attributable to One Liberty Properties, Inc. for the three months ended September 30, 2025, was $10,478,000, representing a 102.4% increase from $5,177,000 in 2024[27]. - Funds from operations (FFO) for the three months ended September 30, 2025, was $9,057,000, slightly down by 1.5% from $9,193,000 in 2024[29]. - Adjusted funds from operations (AFFO) for the nine months ended September 30, 2025, increased to $31,203,000, compared to $30,338,000 in 2024, reflecting a growth of 2.9%[29]. - Net income per share attributable to common stockholders (diluted) for the three months ended September 30, 2025, was $0.48, up from $0.23 in 2024[27]. - Gain on sale of real estate for the three months ended September 30, 2025, was $9,071,000, significantly higher than $2,115,000 in the same period of 2024[27]. - Total operating expenses for the nine months ended September 30, 2025, were $48,361,000, an increase of 10.5% from $43,651,000 in 2024[27]. - Impairment loss recorded for the three months ended September 30, 2025, was $1,300,000, compared to no impairment loss in the same period of 2024[27]. Portfolio and Acquisitions - Approximately 80% of the portfolio's Annual Base Rent (ABR) is generated from industrial properties as of quarter end[6]. - The company completed $189 million in acquisitions in 2025, including a $23 million industrial property and a $53.5 million six-building industrial portfolio[3][6]. - The sale of four non-core properties during the quarter generated $16.3 million in net proceeds and a $9.1 million gain[6][12]. - The company anticipates annual base rent from the recently acquired properties to be approximately $4.9 million, with annual increases ranging from 2% to 4%[14][16]. Liquidity and Capital Structure - Total assets increased to $802.3 million, with total debt at $458.7 million and total stockholders' equity at $305.6 million as of September 30, 2025[10][25]. - The company had approximately $109.4 million in available liquidity as of October 31, 2025, including $9.4 million in cash and cash equivalents[10]. - The weighted average number of shares of common stock outstanding increased by approximately 214,000 due to stock issuances related to equity incentive and dividend reinvestment programs[9]. - The weighted average number of diluted common shares outstanding for the three months ended September 30, 2025, was 20,946,000, compared to 20,753,000 in 2024[27].

Exhibit 99.1 FOR IMMEDIATE RELEASE Orion Properties Inc. Announces Third Quarter 2025 Results - Completed 919,000 Square Feet of Leasing Year-to-Date, Including 303,000 Square Feet in the Third Quarter and 57,000 Square Feet Subsequent to Quarter End - - Sold Eight Properties Year-to-Date for $64.4 Million, Including Three Properties in the Third Quarter for $21.8 Million and One Property for $15.7 Million Subsequent to Quarter End - - Declares Dividend for Fourth Quarter 2025 - - Improved 2025 Guidance Out ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (State or other jurisdiction of incorporation or organization) 313 Datura Street, Suite 200 West Palm Beach, Florida 33401 (Address of principal executive offices) (Zip Code) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For th ...

Financial Performance - Net revenue for Q1 fiscal 2026 was $292.5 million, representing a 14% year-over-year increase[2] - GAAP net loss for Q1 fiscal 2026 was $20.6 million, or a loss of $0.53 per basic share[2] - Non-GAAP net income for Q1 fiscal 2026 was $43.3 million, or $1.09 per diluted share[2] - Net revenue for the three months ended September 2025 was $292.5 million, an increase of 13.5% compared to $257.7 million in September 2024[28] - Operating loss for the quarter was $23.2 million, an improvement from a loss of $28.4 million in the same quarter last year[28] - Net loss for the quarter was $20.6 million, compared to a net loss of $23.1 million in September 2024[28] - Non-GAAP net income for the quarter was $43.3 million, up from $32.5 million in the same period last year[30] Revenue Projections - The company expects approximately $300 million in revenue for Q2 fiscal 2026, with a projected year-over-year growth of about 12%[6] Margins - Projected GAAP gross margin for Q2 fiscal 2026 is 43.0% ± 2.0%[6] - Non-GAAP gross margin for Q2 fiscal 2026 is expected to be 53.5% ± 1.0%[6] - Gross margin for the same period was $124.6 million, representing 42.6% of revenue, down from 46.9% in the previous year[30] Cash and Assets - Cash and cash equivalents at the end of the period increased to $459.9 million from $391.5 million at the beginning of the period[32] - Total assets decreased slightly to $2,577.1 million from $2,584.4 million in June 2025[26] - Total liabilities decreased to $1,176.5 million from $1,189.5 million in June 2025[26] Research and Development - Research and development expenses increased to $94.4 million, up from $81.3 million in the same quarter last year[30] Strategic Initiatives - The company achieved a key milestone with the launch of next-generation Astra processors, aimed at intelligent Edge applications[3] - The backlog for the quarter is reported to be healthy, indicating solid demand[4] - The company plans to continue returning capital to stockholders through share repurchases while investing in organic growth initiatives[4] Non-Cash Operating Items - Non-cash operating items for the quarter were $77.6 million, compared to $47.5 million in September 2024[32] Core Product Performance - Core IoT product sales surged by 74% year-over-year, reaching their highest level in three years[4]

Investment Portfolio - As of September 30, 2025, approximately 73% of the investment portfolio was allocated to residential mortgage loans, 21% to Agency RMBS, and 6% to Non-Agency RMBS[281]. - The company purchased approximately $1.2 billion of Agency RMBS Pass-throughs, targeting a return on equity in the 12% to 14% range[302][303]. - The principal value of Agency RMBS Pass-through was $2,561,414 thousand with a weighted average yield of 4.9%[410]. - The principal value of Non-Agency RMBS Senior was $865,570 thousand with a weighted average yield of 5.7%[410]. - The principal value of Re-performing Loans was $9,204,848 thousand with a weighted average coupon of 5.5% and an average loss severity of 33.7%[410]. - The weighted average coupon for Non-Agency RMBS Subordinated was 4.3% as of September 30, 2025, with a principal value of $499,426 thousand[410]. Financial Performance - For the quarter ended September 30, 2025, the net loss available to common shareholders was $22 million, or $(0.27) per average basic common share, compared to a net income of $14 million, or $0.17 per average basic common share for the previous quarter[334]. - Net interest income for the quarter was $65 million, with interest income increasing by approximately $8 million, or 3.9%, to $209 million, primarily driven by Agency RMBS purchases[336]. - Interest expense increased by $9 million, or 6.5%, to $144 million for the quarter, mainly due to higher borrowings for purchasing $1.2 billion of Agency RMBS pass-throughs[338]. - For the nine months ended September 30, 2025, net income available to common shareholders was $138 million, or $1.69 per average basic common share, down from $259 million, or $3.20 per average basic common share in the same period last year[335]. - Economic net interest income for the quarter ended September 30, 2025, remained relatively unchanged at $69 million compared to the prior quarter[351]. - The book value per share decreased by 3.2% to $20.24 due to higher valuations on securitized debt liabilities and elevated transaction expenses[320]. Acquisition and Strategic Initiatives - The acquisition of HomeXpress was completed on October 1, 2025, for $240 million in cash, including an estimated adjusted book value of $120 million and a premium of $120 million[290]. - The HomeXpress Acquisition is expected to diversify revenue sources and support the company's investment strategy and dividend objectives[323]. - The company plans to continue evaluating opportunities to acquire mortgage servicing rights to balance duration risk and diversify earnings sources[324]. - The company executed asset sales to temporarily increase cash holdings in preparation for the HomeXpress Acquisition, which closed on October 1, 2025[416]. Market Conditions - Mortgage rates fell in the third quarter, with the Freddie Mac 30-year survey rate decreasing from 6.77% to 6.30%[292]. - The U.S. housing shortage is estimated at 5 million homes, with demand exceeding construction, particularly in high-growth markets[294]. - Credit spreads tightened moderately in the third quarter, supported by strong collateral performance and broad investor demand[288]. - The National Association of Retailers Housing Affordability Index improved modestly in the third quarter as housing prices and mortgage rates declined[293]. Expenses and Cash Flow - Operating expenses increased, with compensation expenses rising by $2 million and transaction expenses increasing by $10 million due to the HomeXpress Acquisition[315]. - Cash and cash equivalents increased to approximately $491 million as of September 30, 2025, up by $407 million from $84 million at December 31, 2024[421]. - Investing activities used $1.3 billion in cash for the nine months ended September 30, 2025, compared to $511 million in 2024, with significant purchases of $3.3 billion in Agency MBS[423]. - Financing activities provided $1.8 billion in cash for the nine months ended September 30, 2025, a substantial increase from $219 million in 2024, driven by $2.0 billion in net proceeds from secured financing agreements[424]. Debt and Financing - The carrying value of total interest-bearing debt was approximately $12.2 billion as of September 30, 2025, representing a leverage ratio of approximately 4.8:1[433]. - The weighted average borrowing rates for secured financing agreements collateralized by Agency RMBS and Agency CMBS were both 4.4% as of September 30, 2025, down from 4.8% at December 31, 2024[430]. - The company anticipates continuing to borrow funds through secured financing agreements to meet short-term liquidity needs[418]. - The company highlighted potential challenges in securing and maintaining financing agreements due to market conditions[417]. Risk Management - Credit risk is primarily associated with investments in Non-Agency RMBS and residential mortgage loans, particularly those rated below "AAA" or not rated[473]. - Significant estimates include current expected credit losses of Non-Agency RMBS and valuation of Loans held for investments, which could materially impact financial results[469]. - The company conducts independent reviews of mortgage files to assess origination and servicing quality, focusing on specific risk-based criteria[474].

Financial Performance - Total revenue for Q3 2025 reached $956.0 million, a 100% increase from $478.7 million in Q3 2024[7] - Adjusted EBITDA for Q3 2025 was $68.5 million, up 52% from $45.2 million in Q3 2024[8] - Care Partners revenue was $897.7 million, reflecting a 97% increase from $455.8 million in the prior year[8] - Net income attributable to Astrana for Q3 2025 was $0.4 million, with diluted earnings per share of $0.01[8] - Total revenue for the three months ended September 30, 2025, was $956,048 thousand, representing a 100.0% increase from $478,710 thousand in the same period of 2024[26] - Net income for the nine months ended September 30, 2025, was $17,514 thousand, a decrease of 69.7% compared to $57,709 thousand for the same period in 2024[28] - Adjusted EBITDA for the nine months ended September 30, 2025, was $152,970 thousand, an increase of 12.9% from $135,332 thousand in the same period of 2024[31] - Earnings per share (diluted) for the three months ended September 30, 2025, was $0.01, a decrease from $0.33 in the same period of 2024[26] Guidance and Projections - The company updated its full-year 2025 guidance, projecting total revenue between $3,100 million and $3,180 million[13] - Net income guidance for the year ending December 31, 2025, is projected to be between $23,500,000 and $28,500,000[35] - EBITDA guidance for the same period is estimated to range from $124,000,000 to $134,000,000[35] - Adjusted EBITDA is expected to be between $200,000,000 and $210,000,000, providing a key performance measure for the company[35] Assets and Liabilities - Total assets as of September 30, 2025, were $2,237.2 million, compared to $1,354.9 million at the end of 2024[23] - Total stockholders' equity as of September 30, 2025, was $775,543 thousand, up from $712,720 thousand as of December 31, 2024, reflecting a growth of 8.8%[24] - Total liabilities, mezzanine deficit, and stockholders' equity amounted to $2,237,186 thousand as of September 30, 2025, compared to $1,354,894 thousand as of December 31, 2024[24] - The company reported a total of $1,302.4 million in assets that can only be used to settle obligations of its consolidated VIEs as of September 30, 2025[24] Cash Flow and Expenses - Cash flows from operating activities for the nine months ended September 30, 2025, were $117,483 thousand, compared to $63,146 thousand for the same period in 2024, indicating a significant increase[28] - The company incurred $548,553 thousand in payments for business acquisitions during the nine months ended September 30, 2025, compared to $115,494 thousand in the same period of 2024[28] - The company had a net cash increase of $175,224 thousand for the nine months ended September 30, 2025, compared to $54,488 thousand for the same period in 2024[28] Non-GAAP Measures - The company defines Adjusted EBITDA margin as Adjusted EBITDA over total revenue, emphasizing its importance in evaluating operational performance[36] - Non-GAAP measures like Adjusted EBITDA are used to assess the company's ongoing operating performance without the impact of non-recurring financial information[37] - The company believes that presenting non-GAAP financial measures provides investors with relevant information for evaluating business performance[37] - The reconciliation of GAAP and non-GAAP measures is provided to enhance understanding of the company's financial performance[37] Strategic Initiatives - The acquisition of Prospect Health was completed on July 1, 2025, enhancing the company's operational scale and capabilities[9] - A strategic partnership with Intermountain Health was announced to improve healthcare access in southern Nevada[14] - The company continues to control medical costs effectively, reiterating full-year trend expectations[7] Depreciation and Expenses - Interest expense is projected to be between $37,000,000 and $38,000,000, while provision for income taxes is expected to range from $18,000,000 to $22,000,000[35] - Depreciation and amortization is consistently estimated at $45,500,000 for the guidance period[35] - Stock-based compensation is projected to be $36,000,000, which is included in the Adjusted EBITDA calculation[35]