Table of Contents 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 June 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 001-41746 ATLANTA BRAVES HOLDINGS, INC. (Exact name of Registrant as specified in its charter) Nevada 92-1284827 (State or ot ...

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Research Frontiers Incorporated as of June 30, 2025, show a decrease in total assets and shareholders' equity compared to December 31, 2024, with a year-over-year decline in fee income and a significant increase in net loss, primarily driven by lower royalties and higher operating expenses, leading to a reduction in cash and cash equivalents [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's total assets decreased to $3.17 million from $4.04 million at the end of 2024, primarily due to a reduction in cash and cash equivalents, while total liabilities saw a slight decrease and total shareholders' equity declined from $2.60 million to $1.80 million, largely due to the accumulated deficit Condensed Consolidated Balance Sheet Highlights (in USD) | Account | June 30, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,274,276 | $1,994,186 | | Total current assets | $1,971,930 | $2,745,889 | | Total assets | $3,172,806 | $4,039,647 | | **Liabilities & Equity** | | | | Total current liabilities | $280,235 | $269,027 | | Total liabilities | $1,374,780 | $1,435,312 | | Total shareholders' equity | $1,798,026 | $2,604,335 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, fee income dropped sharply to $129,904 from $489,594 in Q2 2024, leading to a significantly wider operating loss of $815,104, with the net loss for the quarter at $803,826, or $0.02 per share, and the six-month results showing a similar trend of decreasing fee income and nearly doubling net loss year-over-year Statement of Operations Summary (in USD) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Fee income | $129,904 | $489,594 | $689,680 | $802,972 | | Operating loss | $(815,104) | $(116,134) | $(1,054,681) | $(585,884) | | Net loss | $(803,826) | $(94,022) | $(981,513) | $(536,626) | | Basic and diluted net loss per share | $(0.02) | $(0.00) | $(0.03) | $(0.02) | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity decreased from $2.60 million at the beginning of 2025 to $1.80 million by June 30, 2025, primarily driven by a net loss of $981,513 for the six-month period, partially offset by $175,204 in share-based compensation - For the six months ended June 30, 2025, total shareholders' equity decreased by approximately **$806,000**, mainly due to the net loss of **$981,513**[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash used in operating activities was $719,701, an increase from $577,972 in the same period of 2024, leading to the company's cash and cash equivalents balance falling from $1.99 million at the start of the year to $1.27 million at the end of the period Cash Flow Summary (in USD) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(719,701) | $(577,972) | | Net decrease in cash and cash equivalents | $(719,910) | $(569,456) | | Cash and cash equivalents at end of period | $1,274,276 | $1,906,502 | [Notes to the Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's business as a single segment focused on licensing its SPD-Smart light-control technology, highlighting significant reliance on the automotive market, revenue concentration among a few licensees, and the post-quarter bankruptcy filing of a major European licensee that accounted for 33% of revenue in the first half of 2025, alongside the company's receipt of an Employee Retention Credit under the CARES Act - The company operates in a single business segment, licensing its patented SPD-Smart light-control technology to over 40 licensees serving aerospace, architectural, automotive, marine, and display markets[21](index=21&type=chunk)[24](index=24&type=chunk) - For the first six months of 2025, **99%** of the company's revenue was generated from sources outside the United States, a significant increase from **61%** in the same period of 2024[24](index=24&type=chunk) - Subsequent to June 30, 2025, a significant European licensee, which accounted for **33%** of revenue in the first half of 2025, filed for bankruptcy, with the company having no outstanding accounts receivable from this licensee[46](index=46&type=chunk) - The company recorded **$175,204** in share-based compensation during the six months ended June 30, 2025, related to stock options granted in June 2025[52](index=52&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 73% decrease in Q2 2025 fee income primarily to lower royalties from the automotive market and the disruption caused by a major European licensee's bankruptcy, with operating expenses rising due to non-cash stock option compensation and credit loss expenses, widening the net loss, yet management asserts the company has sufficient working capital for more than the next five years despite operational challenges and cash burn [Results of Operations](index=16&type=section&id=Results%20of%20Operations) Fee income for Q2 2025 fell by $359,690 (**73%**) year-over-year, mainly due to reduced automotive royalties and the bankruptcy of a licensee supplying Ferrari, which has since transitioned to another of the company's licensees, while operating expenses increased by $299,024 in the quarter, driven by non-cash compensation and credit loss expenses, and for the six-month period, fee income decreased by 14%, with net loss widening from $536,626 to $981,513 - Q2 2025 fee income decreased by **73%** YoY, primarily due to lower automotive royalties and the bankruptcy of a European licensee that supplied Ferrari, with Ferrari transitioning its business to another existing licensee[69](index=69&type=chunk) - Q2 2025 operating expenses increased by **$299,024** YoY, mainly due to higher non-cash compensation cost (**$165,000**) and higher credit loss expense (**$124,000**)[70](index=70&type=chunk) Net Loss Comparison (in USD) | Period | 2025 | 2024 | | :--- | :--- | :--- | | Three months ended June 30 | **$803,826 ($0.02/share)** | **$94,022 ($0.00/share)** | | Six months ended June 30 | **$981,513 ($0.03/share)** | **$536,626 ($0.02/share)** | [Financial Condition, Liquidity and Capital Resources](index=18&type=section&id=Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) The company's cash and cash equivalents decreased by $719,910 during the first six months of 2025, ending the period with approximately $1.3 million, yet management states that current working capital of $1.7 million is sufficient to fund operations for more than the next five years - As of June 30, 2025, the company had cash and cash equivalents of approximately **$1.3 million** and working capital of **$1.7 million**[80](index=80&type=chunk) - Management expects to have sufficient working capital for more than the next five years of operations[81](index=81&type=chunk)[82](index=82&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material change in its market risk disclosures from what was presented in its Annual Report on Form 10-K for the year ended December 31, 2024 - There has been no material change in the company's market risk since the last annual report[84](index=84&type=chunk) [Item 4. Controls and Procedures](index=19&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and acting interim CFO, evaluated the company's disclosure controls and procedures as of June 30, 2025, and concluded they were effective, with no material changes in internal control over financial reporting during the quarter - The company's management concluded that disclosure controls and procedures were effective as of June 30, 2025[85](index=85&type=chunk) - No material changes were made to the internal control over financial reporting during the three months ended June 30, 2025[86](index=86&type=chunk) [PART II - OTHER INFORMATION](index=20&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 6. Exhibits](index=20&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications (Rule 13a-14(a)/15d-14(a) and Section 1350) and Inline XBRL data files - The report includes certifications from CEO Joseph M Harary and various Inline XBRL documents as exhibits[88](index=88&type=chunk) [SIGNATURES](index=21&type=section&id=SIGNATURES) - The report is signed by Joseph M Harary, serving as President, CEO, and acting interim CFO, on August 7, 2025[90](index=90&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Commission file number: 001-39471 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 June 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 (858) 847-0659 (Registrant's Telephone Number) N/A (Registrant's Former Name) HERITAGE GLOBAL INC. (Exact name of registrant as speci ...

FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 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 No.001-15725 Alpha Pro Tech, Ltd. (Exact Name of Registrant as Specified in Its Charter) Delaware, U.S.A. 63-1009183 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) UNITED ...

Table of Contents 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 June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission File Number: 001-39309 Pinnacle Financial Partners Inc. Tennessee 62-1812853 (State or other jurisdiction of incorpo ...

Table of Contents 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 June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission File Number: 001-39309 Pinnacle Financial Partners Inc. Tennessee 62-1812853 (State or other jurisdiction of incorpo ...

Table of Contents I 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 June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 000-10537 (Exact name of Registrant as specified in its charter) of incorporation or organization) Delaware 36-3143493 (State or ...

PART I. FINANCIAL INFORMATION [Unaudited Financial Statements](index=4&type=section&id=ITEM%201.%20Unaudited%20Financial%20Statements) Q2 2025 statements show a turnaround to net income, driven by a significant gain on debt extinguishment Consolidated Statements of Operations Highlights (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $9,812 | $9,713 | +1.0% | | Operating Loss | $(185) | $(10,208) | +98.2% | | Gain on Extinguishment of Debt | $2,958 | $542 | +445.8% | | **Net Income (Loss)** | $1,588 | $(10,028) | N/A | | Diluted EPS | $0.63 | $(4.07) | N/A | Consolidated Balance Sheet Highlights (as of June 30, 2025) | Metric | June 30, 2025 (in millions) | Dec 31, 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $4,888 | $5,312 | -7.9% | | Total Assets | $101,727 | $104,560 | -2.7% | | Total Debt (Current + Noncurrent) | $34,632 | $39,505 | -12.3% | | Total Equity | $37,323 | $34,829 | +7.2% | Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Metric | 2025 (in millions) | 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Cash provided by operating activities | $1,536 | $1,813 | -15.3% | | Cash used in investing activities | $(431) | $(137) | +214.6% | | Cash used in financing activities | $(1,886) | $(2,274) | -17.1% | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the planned corporate separation, a major debt restructuring, and key joint venture activities - In June 2025, the company announced a plan to separate into two publicly traded companies, **'Warner Bros.'** (Streaming and Studios) and **'Discovery Global'** (Global Linear Networks), expected to be completed by mid-2026[26](index=26&type=chunk) - The company completed tender offers in June 2025, purchasing **$17.7 billion in senior notes** and recording a **gain on extinguishment of approximately $3.0 billion**, funded by a new **$17.0 billion Bridge Loan Facility**[70](index=70&type=chunk)[71](index=71&type=chunk) - In January 2025, the company contributed a 70% interest in its music catalog to a joint venture with Cutting Edge Group, receiving **net proceeds of $601 million**[66](index=66&type=chunk) - The Venu Sports joint venture with Disney and Fox was discontinued in January 2025; WBD's share of a settlement paid to FuboTV was **$55 million**[130](index=130&type=chunk)[131](index=131&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the planned separation, segment performance, and significant debt restructuring activities - The company announced plans in June 2025 to separate into two publicly traded companies: **'Warner Bros.'** (Streaming & Studios) and **'Discovery Global'** (Global Linear Networks), with completion expected by mid-2026[162](index=162&type=chunk) - Key industry headwinds include continued pressures on linear distribution, declines in linear subscribers, and softness in the U.S. linear advertising market[166](index=166&type=chunk) - A significant debt restructuring occurred in Q2 2025, with the company entering a **$17.0 billion Bridge Loan Facility** to fund tender offers for **$17.7 billion** of its existing notes, resulting in a **~$3.0 billion gain on extinguishment**[183](index=183&type=chunk)[237](index=237&type=chunk) Q2 2025 Revenue Performance (ex-FX) | Revenue Stream | % Change (ex-FX) | Key Drivers | | :--- | :--- | :--- | | Distribution | 0% | Streaming subscriber growth offset linear declines | | Advertising | -10% | Audience declines in domestic networks and pricing pressure | | Content | +16% | Strong theatrical performance from films like *A Minecraft Movie* | [Streaming Segment Analysis](index=37&type=section&id=Streaming%20Segment) The Streaming segment achieved revenue growth and positive Adjusted EBITDA, driven by strong subscriber gains Streaming Subscriber Growth (as of June 30) | Subscriber Type | 2025 (millions) | 2024 (millions) | % Change | | :--- | :--- | :--- | :--- | | Total Domestic | 57.8 | 52.4 | +10% | | Total International | 67.9 | 50.8 | +33% | | **Total Streaming** | **125.7** | **103.3** | **+22%** | Streaming Segment Financials (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change (ex-FX) | | :--- | :--- | :--- | :--- | | Total Revenues | $2,793 | $2,568 | +8% | | Adjusted EBITDA | $293 | $(107) | N/A | | Global ARPU | $7.14 | $8.00 | -11% | - The decrease in Global ARPU was primarily driven by the **33% growth in international subscribers**, which have a lower ARPU, and broader distribution of the lower-priced 'HBO Max Basic with Ads' tier domestically[199](index=199&type=chunk)[206](index=206&type=chunk) [Studios Segment Analysis](index=40&type=section&id=Studios%20Segment) The Studios segment delivered exceptional revenue and Adjusted EBITDA growth, fueled by strong content performance Studios Segment Financials (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change (ex-FX) | | :--- | :--- | :--- | :--- | | Total Revenues | $3,801 | $2,449 | +54% | | Content Revenue | $3,591 | $2,237 | +59% | | Adjusted EBITDA | $863 | $210 | +311% | - Theatrical product revenue **increased 38% in Q2** due to the strong performance of *A Minecraft Movie*, *Sinners*, and *Final Destination Bloodlines*[214](index=214&type=chunk)[216](index=216&type=chunk) - Television product revenue **grew 115% in Q2**, primarily due to higher intercompany content licensing to other WBD segments, reflecting the timing of renewals[214](index=214&type=chunk)[215](index=215&type=chunk) [Global Linear Networks Segment Analysis](index=42&type=section&id=Global%20Linear%20Networks%20Segment) The Global Linear Networks segment faced revenue and Adjusted EBITDA declines from subscriber and advertising losses Global Linear Networks Segment Financials (Q2 2025 vs Q2 2024) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | % Change (ex-FX) | | :--- | :--- | :--- | :--- | | Total Revenues | $4,803 | $5,272 | -9% | | Distribution Revenue | $2,477 | $2,675 | -7% | | Advertising Revenue | $1,953 | $2,214 | -13% | | Adjusted EBITDA | $1,512 | $1,998 | -25% | - Distribution revenue decline was primarily caused by a **9% drop in domestic linear subscribers**[225](index=225&type=chunk) - Advertising revenue decline was driven by a **23% audience decline in domestic networks** and the absence of the NCAA Final Four, which aired in the prior year[226](index=226&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains solid liquidity while executing a major debt restructuring via a new $17.0 billion bridge loan Capital Resources (as of June 30, 2025) | Resource | Amount (in billions) | | :--- | :--- | | Cash and cash equivalents | $4.9 | | Unused Revolving Credit Facility | $4.0 | | Total Debt Outstanding | $35.0 | - In Q2 2025, the company entered into a **$17.0 billion Bridge Loan Facility** to finance tender offers for its senior notes; the bridge loan is expected to be refinanced before the planned Separation[237](index=237&type=chunk) - In January 2025, the company received **$601 million in net proceeds** from contributing a 70% interest in its music catalog to a joint venture[243](index=243&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposures have not materially changed since the previous fiscal year-end - The company's exposures to market risk **have not materially changed** since December 31, 2024[271](index=271&type=chunk) [Controls and Procedures](index=51&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal financial reporting controls - Based on an evaluation as of June 30, 2025, the CEO and CFO concluded that the company's **disclosure controls and procedures were effective**[272](index=272&type=chunk) - **No changes in internal control over financial reporting** occurred during Q2 2025 that have materially affected, or are reasonably likely to materially affect, internal controls[273](index=273&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=52&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is involved in a securities class action and a shareholder derivative action related to NBA negotiations - A securities class action (Collura v. Warner Bros. Discovery, Inc.) alleges misleading statements were made between February and August 2024 concerning **NBA contract negotiations**[276](index=276&type=chunk) - A consolidated shareholder derivative action (In re Warner Bros. Discovery, Inc. Derivative Litigation) asserts claims for breach of fiduciary duty based on the same facts as the securities case; **this action is currently stayed**[277](index=277&type=chunk) [Risk Factors](index=52&type=section&id=ITEM%201A.%20Risk%20Factors) New material risks relate to the planned corporate separation, a new bridge loan, and potential tax implications [Risks Related to the Separation](index=53&type=section&id=Risks%20Related%20to%20the%20Separation) The planned separation faces risks of non-completion, business disruption, and adverse tax consequences - **Failure to complete the planned separation** could lead to negative market reactions, wasted costs, and diversion of management focus[279](index=279&type=chunk)[284](index=284&type=chunk) - The pendency of the separation could **disrupt business relationships** with distributors, advertisers, and content providers, and place a significant burden on internal resources[281](index=281&type=chunk)[282](index=282&type=chunk) - If the separation **fails to qualify for tax-free treatment**, WBD, the new spun-off company (Spinco), and shareholders could be subject to significant U.S. federal income taxes[291](index=291&type=chunk)[292](index=292&type=chunk) [Risks Related to Financial, Capital and Corporate Structure](index=54&type=section&id=Risks%20Related%20to%20our%20Financial%2C%20Capital%20and%20Corporate%20Structure) The new $17 billion bridge loan introduces risks from restrictive covenants, interest rates, and refinancing - The new **$17 billion Bridge Loan Facility contains restrictive covenants** that limit the company's ability to engage in mergers, incur debt, and pay dividends[287](index=287&type=chunk) - A breach of covenants or default under the Bridge Loan could **trigger cross-default provisions** in other debt agreements, leading to a broader acceleration of debt[288](index=288&type=chunk) - The company may be **unable to obtain permanent financing to refinance the Bridge Loan Facility** on favorable terms, which could adversely affect its business and financial condition[290](index=290&type=chunk) [Exhibits](index=56&type=section&id=ITEM%206.%20Exhibits) This section lists filed exhibits, including credit agreements, employment contracts, and required certifications - Key exhibits filed include amendments to credit agreements, details of the new Non-Investment Grade Leveraged Bridge Loan Agreement, and employment agreements for **CEO David Zaslav and CFO Gunnar Wiedenfels**[294](index=294&type=chunk)

Part I - Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Skyward Specialty Insurance Group, Inc.'s unaudited condensed consolidated financial statements as of June 30, 2025, and for the three and six-month periods then ended, including Balance Sheets, Statements of Operations, Stockholders' Equity, Cash Flows, and notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$4.34 billion** as of June 30, 2025, from **$3.73 billion**, driven by investments and receivables, while total liabilities and stockholders' equity also grew Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$4,336,392** | **$3,729,478** | | Total Investments | $2,080,507 | $1,870,820 | | Premiums receivable, net | $518,441 | $321,641 | | **Total Liabilities** | **$3,436,477** | **$2,935,479** | | Reserves for losses and LAE | $1,918,753 | $1,782,383 | | Unearned premiums | $814,063 | $637,185 | | **Total Stockholders' Equity** | **$899,915** | **$793,999** | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Net income for H1 2025 increased to **$80.9 million** from **$67.8 million**, driven by a **20.6%** rise in net earned premiums, with diluted EPS reaching **$1.94** Key Performance Indicators (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Earned Premiums | $295,542 | $257,583 | $595,908 | $493,925 | | Total Revenues | $319,903 | $279,942 | $648,430 | $544,910 | | Income Before Income Taxes | $49,795 | $40,355 | $101,230 | $87,332 | | **Net Income** | **$38,839** | **$30,970** | **$80,897** | **$67,754** | | **Diluted EPS** | **$0.93** | **$0.75** | **$1.94** | **$1.65** | | Comprehensive Income | $46,220 | $29,113 | $100,351 | $59,571 | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Total stockholders' equity increased to **$899.9 million** by June 30, 2025, from **$794.0 million**, primarily due to **$80.9 million** in net income and **$19.5 million** in other comprehensive income - Retained earnings increased by **$80.9 million** due to net income for the six months ended June 30, 2025; accumulated other comprehensive loss decreased from **$(22.1) million** to **$(2.7) million**, mainly due to net unrealized gains on investments[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly increased to **$184.9 million** in H1 2025, while **$169.3 million** was used in investing activities, with no financing cash flows Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $184,940 | $115,220 | | Net Cash Used in Investing Activities | $(169,301) | $(97,824) | | Net Cash Used in Financing Activities | $0 | $(9,465) | | **Net Increase in Cash** | **$15,639** | **$7,931** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section details accounting policies, including a credit loss allowance change, investment portfolio breakdowns, updated segment reporting with a new Agriculture and Credit (Re)insurance division, and information on reinsurance, taxes, and contingencies - Effective June 30, 2025, the company updated its accounting policy to recognize changes in the allowance for credit losses in 'net investment gains (losses)' rather than 'net investment income'; prior periods were conformed to this presentation[23](index=23&type=chunk)[24](index=24&type=chunk) - The company has one reportable segment, now composed of nine distinct underwriting divisions, with a new Agriculture and Credit (Re)insurance division added in Q1 2025 and other divisions renamed or reorganized[67](index=67&type=chunk)[98](index=98&type=chunk) - The company is assessing the impact of the newly enacted 'One Big Beautiful Bill Act' (OBBBA), which includes significant changes to the U.S. tax framework with multiple effective dates[76](index=76&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2025 financial results, highlighting **17.3%** gross written premium growth, a **90.0%** combined ratio, and sufficient liquidity with an **11.7%** debt-to-capital ratio Key Operating Metrics | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Gross Written Premiums | $1,120.2M | $954.9M | | Net Written Premiums | $682.5M | $584.2M | | Net Income | $80.9M | $67.8M | | Combined Ratio | 90.0% | 90.1% | | Annualized Return on Equity | 19.1% | 19.6% | [Underwriting Results](index=36&type=section&id=Underwriting%20Results) Gross written premiums grew **17.3%** to **$1.12 billion** in H1 2025, driven by strong divisional performance, while the combined ratio slightly improved to **90.0%** despite a higher loss ratio Gross Written Premiums by Underwriting Division - H1 2025 vs H1 2024 (in thousands) | Division | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | Agriculture and Credit (Re)insurance | $159,420 | $79,913 | 99.5% | | Accident & Health | $123,658 | $84,989 | 45.5% | | Specialty Programs | $148,630 | $111,822 | 32.9% | | Captives | $145,362 | $130,507 | 11.4% | | Surety | $78,535 | $71,484 | 9.9% | | Global Property | $130,678 | $145,543 | (10.2%) | Combined Ratio Components - H1 2025 vs H1 2024 | Ratio | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Loss and LAE Ratio | 61.9% | 61.3% | | Expense Ratio | 28.1% | 28.8% | | **Combined Ratio** | **90.0%** | **90.1%** | [Investment Results](index=38&type=section&id=Investment%20Results) Net investment income decreased to **$37.9 million** in H1 2025 due to alternative investment losses, partially offset by higher fixed income returns, with the total portfolio growing to **$2.22 billion** - Net investment income decreased in H1 2025 due to losses in alternative & strategic investments, which was partially offset by higher income from the fixed income portfolio, where the book yield increased to **5.3%** from **4.4%** YoY[117](index=117&type=chunk)[118](index=118&type=chunk) - A provision for credit losses of **$6.2 million** was recognized for two available-for-sale corporate securities due to deteriorating conditions and credit concerns[119](index=119&type=chunk) Investment Portfolio Composition (in thousands) | Asset Class | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Fixed income | $1,639,632 | $1,318,708 | | Short-term investments | $214,338 | $274,929 | | Alternative and strategic investments | $168,536 | $170,929 | | Cash and cash equivalents | $136,617 | $121,603 | | Equities | $58,001 | $106,254 | | **Total portfolio** | **$2,217,124** | **$1,992,423** | [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Net cash from operations increased to **$184.9 million** in H1 2025, with a debt-to-total capitalization ratio of **11.7%** and no shares repurchased under the **$50.0 million** program - Cash from operating activities increased to **$184.9 million** in H1 2025 from **$115.2 million** in H1 2024, primarily due to positive cash flow from insurance operations[129](index=129&type=chunk) - The ratio of total debt to total capitalization was **11.7%** at June 30, 2025, down from **13.1%** at year-end 2024[139](index=139&type=chunk) - In October 2024, the Board approved a **$50.0 million** share repurchase program; as of June 30, 2025, no shares had been repurchased under this plan[140](index=140&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk have occurred since the December 31, 2024 Annual Report on Form 10-K - There have been no material changes in market risk since the 2024 year-end 10-K filing[146](index=146&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were ineffective as of June 30, 2025, due to a material weakness in ITGCs related to user access, though remediation efforts are ongoing - A material weakness related to ineffective IT general controls (ITGCs) in user access for financial reporting systems continues to exist as of June 30, 2025[148](index=148&type=chunk) - Due to the material weakness, the CEO and CFO concluded that disclosure controls and procedures were not effective[148](index=148&type=chunk) - Remediation activities are in progress, focusing on reviewing and enhancing access controls, strengthening system access procedures, and employee training; significant resources will continue to be invested to improve ITGCs[149](index=149&type=chunk)[150](index=150&type=chunk) Part II - Other Information [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, which are not expected to materially adversely affect its financial position - The company is involved in ordinary course legal proceedings and does not expect them to have a material adverse effect on its financial position[154](index=154&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred in H1 2025 compared to prior disclosures - No material changes in risk factors have occurred in H1 2025 compared to those previously disclosed in the 2024 Form 10-K and Q1 2025 Form 10-Q[155](index=155&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None[156](index=156&type=chunk) [Other Information](index=44&type=section&id=Item%205.%20Other%20Information) Tom Schmitt, Chief People Officer, entered a Rule 10b5-1 Trading Arrangement on May 9, 2025, allowing sale of up to 8,485 shares Rule 10b5-1 Trading Arrangement | Name (Title) | Date of Adoption | Duration of Trading Arrangement | Aggregate Number of Securities | | :--- | :--- | :--- | :--- | | Tom Schmitt (Chief People Officer) | May 9, 2025 | 11/10/2025 – 6/9/2026 | Up to 8,485 shares | [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including certifications by the Principal Executive and Financial Officers, and Inline XBRL documents

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 June 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: 001-35388 PROSPERITY BANCSHARES, INC.® (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorp ...