Financial Performance - Gross billings for North America increased by $44.0 million (16.0%) to $319.1 million for the three months ended September 30, 2025, compared to the same period in 2024 [202]. - Revenue for the three months ended September 30, 2025, was $122.8 million, up from $114.5 million in 2024, representing a growth of 7.9% [194]. - Gross profit for the same period increased to $111.8 million, compared to $102.9 million in 2024, reflecting a growth of 8.6% [194]. - Contribution profit for the three months ended September 30, 2025, was $70.4 million, a 5.3% increase from $66.6 million in 2024 [194]. - Adjusted EBITDA for the three months ended September 30, 2025, was $17.5 million, compared to $14.8 million in 2024, marking a growth of 18.9% [194]. - Contribution profit for North America increased by $6.9 million (14.0%) to $55,962 thousand for the three months ended September 30, 2025 [208]. - Total gross profit for North America increased by $10.0 million (12.8%) to $87,708 thousand for the three months ended September 30, 2025 [206]. - Total gross profit for North America increased by $11.3 million (4.5%) to $262,012 thousand for the nine months ended September 30, 2025 [207]. - Revenue for the nine months ended September 30, 2025, was $365.7 million, with an increase of $1.9 million attributed to exchange rate changes [238]. - The company reported a gross profit of $332.6 million for the nine months ended September 30, 2025, which is an increase of $1.7 million from the previous year [238]. Customer Metrics - Active customers in North America grew by 8.3% to 10.999 million for the trailing twelve months ended September 30, 2025 [202]. - International TTM active customers decreased by 170 thousand (3.2%) to 5,127 thousand for the trailing twelve months ended September 30, 2025 [211]. Segment Performance - North America segment revenue increased by $9.1 million (10.5%) to $96,007 thousand for the three months ended September 30, 2025, compared to the prior year [206]. - International segment revenue decreased by $0.8 million (2.8%) to $26,818 thousand for the three months ended September 30, 2025 [215]. - International revenue decreased by $4.2 million (5.1%) to $78,598 thousand for the nine months ended September 30, 2025 [216]. - The Local category gross billings increased by 18.1% to $293.8 million for the three months ended September 30, 2025 [202]. - The Goods category experienced a decline of 31.9% in gross billings, dropping to $7.6 million for the three months ended September 30, 2025 [202]. Expenses and Cash Flow - Free cash flow for the three months ended September 30, 2025, was $(24.6) million, compared to $(19.7) million in 2024 [194]. - North America marketing expense increased by $3.1 million (10.8%) to $31,746 thousand for the three months ended September 30, 2025 [208]. - International marketing expense increased by 27.3% to $9,696,000 for the three months ended September 30, 2025, compared to $7,615,000 in 2024 [217]. - Total operating expenses for the three months ended September 30, 2025 were $109,642,000, a slight increase of 1.1% from $108,481,000 in 2024 [222]. - Selling, general and administrative (SG&A) expenses decreased by 4.3% to $68,264,000 for the three months ended September 30, 2025, compared to $71,327,000 in 2024 [222]. Tax and Other Financial Matters - Provision for income taxes for the three months ended September 30, 2025 was $2,321,000, compared to $21,248,000 in 2024, reflecting a significant change in effective tax rate [227]. - The company expects future effective tax rates to differ significantly from the U.S. federal income tax rate due to valuation allowances in jurisdictions with losses [227]. - The company expects to pay approximately $15.2 million in cash for tax assessments in Italy, significantly reduced from initial claims of $170 million [242]. - Other income (expense), net for the three months ended September 30, 2025 was $(98,728,000), a significant decrease from $22,429,000 in 2024, primarily due to a loss on extinguishment of debt [225]. Cash and Liquidity - As of September 30, 2025, the company had a cash balance of $238.5 million, with sufficient liquidity to meet operational needs for the next 12 months [240]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $7.9 million, compared to a net cash used of $11.1 million in the prior period [248]. - Net cash provided by investing activities for the nine months ended September 30, 2025, was $4.0 million, an increase from a net cash used of $3.1 million in the prior period [249]. - The company used $6.4 million in financing activities for the nine months ended September 30, 2025, a decrease from $32.9 million provided in the prior period [250]. - As of September 30, 2025, the company held $67.0 million in cash in international subsidiaries, primarily in various foreign currencies [260]. Foreign Currency and Debt - The company is exposed to inflationary pressures that could negatively impact operating costs and financial performance [270]. - The company assesses foreign currency exchange risk using a sensitivity analysis based on a hypothetical 10% change in currency rates [267]. - The net working capital deficit from subsidiaries subject to foreign currency translation risk was $29.8 million as of September 30, 2025 [268]. - A hypothetical 10% adverse change in foreign currency exchange rates could increase the working capital deficit by $3.0 million [268]. - The company has fixed-rate debt with aggregate principal amounts of $33.7 million, $47.3 million, and $244.1 million for the 2026, 2027, and 2030 Notes, respectively [269]. - Changes in market interest rates affect the fair value of the company's fixed-rate notes and other financial variables [269]. - The company’s cash balance as of September 30, 2025, consists of bank deposits, limiting exposure to interest rate changes [269]. - As of September 30, 2025, the U.S. dollar index decreased by 9.6% compared to December 31, 2024 [266]. - Approximately 21.8% and 21.5% of the company's revenue for the three and nine months ended September 30, 2025, respectively, was derived from the International segment [266].

Financial Performance - Total sales for the three months ended September 30, 2025, were $249.3 million, a 2% increase from $244.0 million in the same period of 2024[10] - Gross profit for the nine months ended September 30, 2025, was $378.6 million, compared to $332.1 million for the same period in 2024, reflecting a 14% increase[10] - The net loss for the three months ended September 30, 2025, was $21.2 million, slightly improved from a net loss of $23.3 million in the same period of 2024[10] - For the nine months ended September 30, 2024, the net loss was $96,780,000, compared to a net loss of $204,121,000 for the same period in 2025, indicating a significant increase in losses year-over-year[18] - The company reported a comprehensive loss of $197.006 million for the nine months ended September 30, 2025, compared to a comprehensive loss of $94.279 million for the same period in 2024[10] Assets and Liabilities - Total current assets decreased to $616.9 million as of September 30, 2025, down from $724.5 million at December 31, 2024, representing a 15% decline[8] - Total liabilities increased to $741.7 million as of September 30, 2025, compared to $704.6 million at December 31, 2024, marking a 5% increase[8] - The total stockholders' equity decreased to $133.0 million as of September 30, 2025, down from $263.1 million at December 31, 2024[8] - The company reported an accumulated deficit of $1.25 billion as of September 30, 2025, compared to $1.05 billion at December 31, 2024[8] Cash Flow and Investments - Cash and cash equivalents rose to $91.9 million as of September 30, 2025, up from $69.2 million at December 31, 2024, indicating a 33% increase[8] - The company reported a net cash used in operating activities of $19,510,000 for the nine months ended September 30, 2024, a decline from net cash provided of $13,508,000 in the previous year[18] - The company purchased $56,004,000 in short-term investments during the nine months ended September 30, 2025, compared to $251,361,000 in the previous year, reflecting a strategic shift in investment strategy[18] - As of September 30, 2025, the total fair value of short-term investments was $227,164,000, a decrease from $369,095,000 on December 31, 2024[58] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $147.0 million, slightly higher than $146.7 million for the same period in 2024[10] - The company incurred $75,217,000 in acquired in-process research and development expenses during the nine months ended September 30, 2025, indicating ongoing investment in innovation[18] Stockholder Equity and Compensation - The total stockholders' equity decreased to $132.965 million as of September 30, 2025, from $263.098 million as of December 31, 2024, a decline of approximately 49%[8] - Total stock-based compensation expense for the nine months ended September 30, 2025, was $72.271 million, slightly down from $73.217 million in the same period of 2024[97] - The company recorded a stock-based compensation expense of $73,018,000 for the nine months ended September 30, 2024, consistent with the previous year's expense of $72,271,000[18] Sales and Revenue - Revenue is primarily generated from sales of insulin pumps, single-use insulin cartridges, and infusion sets, with recognition occurring upon transfer of control to customers[39] - Revenue from the United States for the three months ended September 30, 2025, was $175.6 million, compared to $171.7 million in 2024, reflecting a 2.3% increase[114] - Total sales to distributors accounted for 62% of the Company's United States sales for the three months ended September 30, 2025[115] Legal and Settlement Agreements - The company has a liability of $31.6 million related to a settlement agreement with Roche, which will be amortized over seven years, reflecting ongoing strategic partnerships and legal considerations[33] - The company entered into a settlement agreement with Roche, agreeing to pay $36 million over four years, with an initial payment of $8 million, impacting future cash flows[33] Convertible Senior Notes - The Company completed an offering of $316.3 million aggregate principal amount of 1.50% Convertible Senior Notes due 2029, with net proceeds of $306.8 million[79] - Approximately $246.1 million of the net proceeds from the 2029 Notes were used to repurchase $246.7 million of Convertible Senior Notes due 2025, resulting in a $1.3 million loss on extinguishment of debt[80] - The 2029 Notes have an initial conversion price of approximately $34.56 per share, with a conversion rate of 28.9361 shares per $1,000 principal amount[83] - As of September 30, 2025, the net carrying amount of the Company's convertible senior notes was $309.590 million, down from $348.936 million as of December 31, 2024[88] Warranty and Provisions - The warranty reserve balance at the end of the period was $53.859 million as of September 30, 2025, compared to $51.408 million at December 31, 2024[51] - The Company recognized warranty provisions of $8.918 million and $27.391 million for the three and nine months ended September 30, 2025, respectively[51] Impairments and Lease Costs - The Company recorded a $3.6 million impairment charge in operating expenses in Q1 2025 due to expected sublease income being less than the net book value of the subleased assets[75] - Operating lease costs (excluding sublease income) for the three months ended September 30, 2025, were $4,328,000, compared to $3,603,000 for the same period in 2024, reflecting an increase of 20.1%[77] - The Company’s total lease cost for the nine months ended September 30, 2025, was $17,995,000, compared to $10,749,000 for the same period in 2024, showing an increase of 67.5%[77]

Financial Performance - Overall net sales for Q3 2025 were $3.3 million, a decrease from $3.7 million in Q3 2024, excluding contributions from the BioEnvelope business[5] - Net sales of SimpliDerm were $2.4 million, down from $3.1 million in Q3 2024[5] - Net sales for Q3 2025 were $3,323 million, a decrease of 9.3% compared to $3,662 million in Q3 2024[17] - Gross profit for Q3 2025 was $1,853 million, representing a gross margin of 55.8%, up from 48.9% in Q3 2024[18] - The net loss for Q3 2025 was $(3,868) million, compared to a net income of $1,286 million in Q3 2024[20] - EBITDA (Non-GAAP) for Q3 2025 was $(3,316) million, compared to $1,705 million in Q3 2024[20] - The company reported a loss from discontinued operations of $(3,485) million in Q3 2025, compared to $(2,053) million in Q3 2024[20] Cost Management - Total operating expenses decreased to $7.1 million, down from $11.0 million in Q3 2024[10] - Total operating expenses for Q3 2025 were $7,061 million, down from $10,966 million in Q3 2024, primarily due to reduced litigation costs[17] - Loss from operations narrowed to $5.2 million, compared to $9.2 million in the same period last year[10] Gross Margin Improvement - Gross margin on a GAAP basis improved to 55.8%, compared to 48.9% in the previous year[10] - Adjusted gross margin increased to 63.9%, up from 56.3% in Q3 2024[10] - Adjusted gross profit (Non-GAAP) for Q3 2025 was $2,122 million, with an adjusted gross margin of 63.9%[18] Cash and Funding - Cash balance as of September 30, 2025, was $4.7 million, with an additional $80.3 million received from the BioEnvelope business sale[10] - Elutia's balance sheet was strengthened by the sale, allowing full funding for the NXT-41x platform development without shareholder dilution[4] Research and Development - Research and development expenses increased to $1,088 million in Q3 2025 from $702 million in Q3 2024, reflecting a focus on new product development[17] Future Outlook - FDA clearance for the base matrix of NXT-41x is anticipated in the second half of 2026, with the drug-eluting version expected in the first half of 2027[4] - The company anticipates continued challenges in the market, with a focus on cost reduction and strategic investments in technology[21] Shareholder Information - The weighted average common shares outstanding for basic shares increased to 42,431,314 in Q3 2025 from 32,520,134 in Q3 2024[17] Business Transactions - Elutia sold its BioEnvelope business to Boston Scientific Corporation for $88 million, with proceeds used to eliminate debt and fund the NXT-41x development program[4]

Elutia Reports Third Quarter 2025 Financial Results; Closes $88 Million Sale of BioEnvelope Business to Boston Scientific Corporation; Funds NXT-41x Development - Rapidly advancing NXT-41x to address significant unmet medical need for plastic and reconstructive surgery, which represents an estimated $1.5 billion U.S. market opportunity Conference call today at 5:00 p.m. ET / 2:00 p.m. PT GAITHERSBURG, Md., November 6, 2025 — Elutia Inc. (Nasdaq: ELUT) ("Elutia" or the "Company"), a pioneer in drug-eluting b ...

Financial Performance - Cash, cash equivalents, and short-term investments totaled $799.0 million as of September 30, 2025, expected to fund operations through at least 2027[6] - R&D expenses for Q3 2025 were $59.0 million, up from $32.6 million in Q3 2024, primarily due to increased clinical trial costs[7] - G&A expenses for Q3 2025 were $14.8 million, compared to $13.2 million in Q3 2024, driven by increased employee expenses[8] - Net loss for Q3 2025 was $65.7 million, compared to a net loss of $34.0 million in Q3 2024[9] - Total operating expenses for Q3 2025 were $73.8 million, compared to $45.8 million in Q3 2024[13] - Total liabilities as of September 30, 2025, were $62.1 million, with total shareholders' equity at $770.0 million[15] Clinical Studies - Topline 36-week data from the ACCESS and ACCESS II studies of aleniglipron are on track for readouts by year-end 2025[1] - The ACCESS study enrolled approximately 220 adults, while ACCESS II enrolled about 80 adults, both focusing on obesity treatment with aleniglipron[5] - The company is conducting three supplementary studies to support the design of the Phase 3 program for aleniglipron[4] - ACCG-2671 Phase 1 study initiation is anticipated by year-end 2025, with a second amylin receptor agonist, ACCG-3535, declared as a development candidate[2]

Financial Performance - GAAP EPS for Q3 2025 was $0.61, compared to $(0.17) in Q3 2024, while Adjusted EPS increased to $0.80 from $0.52 year-over-year[4] - Total revenue for Q3 2025 was $103.064 million, an increase from $81.965 million in Q3 2024, representing a year-over-year growth of approximately 26%[49] - Net income for Q3 2025 was $84.906 million, compared to a net loss of $19.176 million in Q3 2024, indicating a significant turnaround in profitability[49] - Adjusted earnings for Q3 2025 were $102,543,000, or $0.80 per share, compared to $62,624,000, or $0.52 per share in Q3 2024, reflecting a 63.8% increase in earnings year-over-year[66] - The company reported a net income attributable to controlling stockholders of $83,257,000 for Q3 2025, compared to a loss of $19,616,000 in Q3 2024[66] Investment and Asset Management - Adjusted Recurring Net Investment Income reached $105 million in Q3 2025, a 42% increase from $74 million in Q3 2024[13] - Managed Assets grew 15% year-over-year to $15.0 billion as of September 30, 2025[24] - The company closed approximately $1.5 billion in transactions through the first three quarters of 2025, with new asset yields on Portfolio investments exceeding 10.5%[4] - A new $1.2 billion investment in a 2.6 GW utility-scale renewable project was closed in October 2025[4] - Total assets increased to $8,203,966 thousand as of September 30, 2025, up from $7,080,245 thousand at December 31, 2024, representing a growth of approximately 15.8%[51] Debt and Liquidity - Total debt outstanding increased to $5.2 billion as of September 30, 2025, compared to $4.1 billion a year earlier[22] - Total debt outstanding was $5.2 billion as of September 30, 2025, with a debt-to-equity ratio of 1.9x, within the target range of 1.5x to 2.0x[35] - Cash and cash equivalents totaled $302 million, contributing to total liquidity of $1.1 billion, including $834 million of unused capacity under credit facilities[34] - Total liabilities rose to $5,518,095 thousand as of September 30, 2025, compared to $4,675,170 thousand at the end of 2024, indicating an increase of 18.0%[51] Income and Revenue Streams - Interest and Rental Income Revenue was $69 million in Q3 2025, up from $64 million in Q3 2024, driven by higher yields[19] - Adjusted Income from Equity Method Investments was $100 million in Q3 2025, a 68% increase from $59 million in Q3 2024[21] - Interest and rental income for Q3 2025 was $68,976 million, up from $64,151 million in Q3 2024, reflecting a growth of approximately 4%[49] - Gain on sale of assets for Q3 2025 was $24.898 million, significantly higher than $7.678 million in Q3 2024, indicating strong asset performance[49] Future Projections - Adjusted EPS growth for 2025 is expected to be around 10%, with a compound annual growth rate of 8-10% through 2027 relative to the 2023 baseline[4] - Adjusted earnings for the nine months ended September 30, 2025, were $370 thousand, up from $162 thousand in 2024, showing a growth of 128.4%[62] - The company expects annual dividends per share to decline to between 55% and 60% of annual Adjusted EPS by 2027[37] Environmental Impact - Approximately 54,000 metric tons of carbon emissions will be avoided annually due to transactions closed in the quarter, contributing to a total of 8.4 million metric tons avoided across managed assets[36] Shareholder Returns - The company announced a quarterly cash dividend of $0.42 per share, payable on January 9, 2026[38]

Financial Performance - In Q3 2025, USA Rare Earth reported a net loss attributable to the company of $156.68 million, compared to a net loss of $1.87 million in Q3 2024, representing an increase of approximately 8,275% year-over-year[6]. - Adjusted net loss for Q3 2025 was $25.60 million, compared to $2.00 million in Q3 2024, indicating a significant increase in losses[7]. - The net loss per share attributable to USA Rare Earth, Inc. - Diluted for Q3 2025 was $(1.64), compared to $(0.03) in Q3 2024[6]. - For the three months ended September 30, 2025, USA Rare Earth, Inc. reported a net loss of $156,680,000, compared to a net loss of $1,869,000 for the same period in 2024, indicating a significant increase in losses[18]. - Total operating expenses for the three months ended September 30, 2025, were $15,861,000, a substantial rise from $1,959,000 in the prior year, reflecting increased selling, general, and administrative expenses[18]. - The company reported a loss on fair market value of financial instruments of $142,426,000 for the three months ended September 30, 2025, compared to a gain of $135,000 in the same period of 2024[23]. - For the nine months ended September 30, 2025, the net loss attributable to USA Rare Earth, Inc. was $247,354,000, compared to $8,938,000 for the same period in 2024[23]. Cash and Financing - The company ended the quarter with $258 million in cash and no significant debt, having received a $125 million common equity investment at the end of Q3 2025[5]. - The company raised an additional $163 million from the exercise of warrants since the end of Q3 2025, increasing its cash balance to over $400 million[5]. - Cash and cash equivalents at the end of the period for September 30, 2025, were $257,609,000, a significant increase from $22,988,000 at the end of September 30, 2024[20]. - Net cash provided by financing activities for the three months ended September 30, 2025, was $145,768,000, compared to $22,317,000 in the same period of 2024[20]. - The company experienced a net cash used in operating activities of $2,849,000 for the three months ended September 30, 2025, compared to $1,210,000 in the same period of 2024[20]. Assets and Expenditures - The total assets of USA Rare Earth as of September 30, 2025, were $323.33 million, a significant increase from $69.07 million as of December 31, 2024[16]. - The company reported capital expenditures and equipment deposits of $7,101,000 for the three months ended September 30, 2025, compared to $1,201,000 in the same period of 2024[20]. Project Developments - The Stillwater magnet facility is on track for commissioning commercial scale production in Q1 2026, supporting the company's growth strategy[5]. - The Round Top development project is progressing towards a targeted Pre-Feasibility Study completion in the second half of 2026[5]. - The company is moving into pilot-scale testing for its swarf recycling flow sheet in Q1 2026, a key step in closing the loop between mining and recycling[5]. Acquisitions - USA Rare Earth has entered into a definitive agreement to acquire Less Common Metals Ltd. (LCM), enhancing its capabilities in specialized rare earth metals[5].

Exhibit 99.1 News Release For Immediate Release: November 6, 2025 H&R Block Reports Fiscal 2026 First Quarter Results and Reaffirms Fiscal 2026 Outlook — Revenue Increased 5.0% — — Repurchased $400 Million of Shares — KANSAS CITY, Mo. - H&R Block, Inc. (NYSE: HRB) (the "Company") today released financial results for its fiscal 2026 first quarter ended September 30, 2025. 1 "Fiscal 2026 is off to a strong start, not only in the financial results we are reporting but also in the plans we are preparing to exec ...

Financial Performance - Total revenues for Q3 2025 were $136.9 million, representing a 26% year-over-year increase[7] - Cloud revenues reached $63.4 million, up 50% year-over-year, accounting for 46% of total revenue compared to 39% in the same period last year[8] - Total subscription revenue for Q3 2025 reached $136.9 million, a 25.5% increase from $109.1 million in Q3 2024[32] - Gross profit for Q3 2025 was $106.0 million, compared to $81.8 million in Q3 2024, reflecting a 29.6% year-over-year growth[32] - GAAP gross profit was $106.0 million with a gross margin of 77.4%, while non-GAAP gross profit was $114.9 million with a gross margin of 83.9%[8] - Operating loss for Q3 2025 was $21.6 million, an improvement from a loss of $29.9 million in Q3 2024[32] - Net loss for Q3 2025 was $16.4 million, compared to a net loss of $22.9 million in Q3 2024, indicating a reduction of 28.5%[32] - Non-GAAP operating income for Q3 2025 was $25.6 million, resulting in a non-GAAP operating margin of 18.7%[8] - GAAP net loss for Q3 2025 was $16,431 thousand, improved from a loss of $22,945 thousand in Q3 2024[38] Cash Flow and Assets - Operating cash flow for the quarter was $30.2 million, with free cash flow of $28.8 million[8] - Cash and cash equivalents increased to $78.4 million as of September 30, 2025, up from $49.9 million at the end of 2024[34] - Total current assets rose to $800.2 million as of September 30, 2025, compared to $649.2 million at the end of 2024, marking a 23.2% increase[34] - Net cash provided by operating activities for Q3 2025 was $30.2 million, compared to $27.6 million in Q3 2024, showing an increase of 5.9%[36] - Free cash flow for Q3 2025 was $28,811 thousand, up from $26,704 thousand in Q3 2024, marking an 8.0% increase[39] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $95,034 thousand, compared to $61,806 thousand in the same period of 2024, a 53.5% increase[39] Customer Metrics - Customers with annual recurring revenue (ARR) greater than $1 million increased to 71, a 54% year-over-year growth from 46[8] - The net dollar retention rate for the trailing four quarters was 118%[8] Future Outlook - The company provided a Q4 2025 revenue outlook of $136.5 million to $138.5 million, and a fiscal year 2025 revenue outlook of $523 million to $525 million[14] Expenses - Research and development expenses for Q3 2025 were $51.2 million, a 19.0% increase from $43.0 million in Q3 2024[32] - Total operating expenses for the nine months ended September 30, 2025, were $365.8 million, compared to $308.3 million for the same period in 2024, reflecting an increase of 18.6%[32] Deferred Revenue and Performance Obligations - Remaining performance obligations stood at $508 million as of September 30, 2025[8] - Deferred revenue increased to $281.0 million in Q3 2025, up from $247.2 million in Q3 2024, representing a 13.6% growth[34] Product Development - JFrog launched "AppTrust" for governance and compliance and "AI Catalog" for secure AI model delivery during the quarter[7]

Financial Position - As of September 30, 2025, the company had cash and cash equivalents of $7.7 million and marketable securities of $49.7 million, with an accumulated deficit of $239.6 million[78]. - As of September 30, 2025, the company had cash and cash equivalents of $7.7 million and marketable securities of $49.7 million[112]. - The company has commitments for future lease payments totaling $20.8 million as of September 30, 2025[124]. - Goodwill remained unchanged at $12.8 million as of September 30, 2025, with no impairment identified[126]. Revenue and Growth - The company expects revenue growth in absolute dollars as it expands product offerings and physician training, although growth rates may fluctuate due to seasonality and macroeconomic factors[90]. - Revenue for the three months ended September 30, 2025 increased by $5.1 million, or 11.4%, compared to the same period in 2024, driven by an increase in bunion procedure kits sold[98]. - Revenue for the nine months ended September 30, 2025 increased by $9.5 million, or 6.8%, compared to the same period in 2024, with $11.0 million in sales to stocking distributors[105]. Expenses and Losses - The company anticipates operating at a loss in the near term and plans to finance operations through cash, marketable securities, and potential debt[85]. - Net loss for the nine months ended September 30, 2025 was $49.6 million, a decrease of $5.6 million, or 10.2%, compared to the same period in 2024[110]. - General and administrative expenses increased by $2.8 million, or 20.4%, for the three months ended September 30, 2025, largely driven by increased legal fees[103]. - Sales and marketing expenses increased by $1.6 million, or 5.0%, for the three months ended September 30, 2025, primarily due to higher commissions and surgical instrument expenses[100]. - Research and development expenses decreased by $0.3 million, or 5.7%, for the three months ended September 30, 2025, mainly due to a reduction in prototype purchases[101]. Cash Flow - Net cash used in operating activities for the nine months ended September 30, 2025 was $7.9 million, with a net loss of $49.6 million adjusted for non-cash charges of $37.1 million[117]. - Net cash used in operating activities for the nine months ended September 30, 2024 was $33.0 million, with a net loss of $55.2 million[118]. - Net cash provided by investing activities was $3.6 million for the nine months ended September 30, 2025, primarily from $49.6 million in sales and maturities of marketable securities[119]. - Net cash provided by investing activities was $32.0 million for the nine months ended September 30, 2024, primarily from $93.4 million in sales and maturities of marketable securities[120]. - Net cash provided by financing activities was $0.7 million for the nine months ended September 30, 2025, mainly from $1.6 million in proceeds from insurance premium financing[121]. Product Development and Competition - The company has introduced new products, including the Nanoplasty and Percuplasty Systems, and plans to release additional innovations in 2026, such as the Lapiplasty Lightning platform[82]. - The company is experiencing increased competition from minimally invasive osteotomy solutions, which may negatively impact growth rates and market share[80]. - The company expects R&D expenses to increase as it continues to hire personnel and invest in next-generation innovations[113]. Sales Performance - The company has experienced seasonality in sales, with the fourth quarter historically accounting for approximately 30% to 40% of full year revenues[86]. - Gross profit for the three months ended September 30, 2025 increased by $3.6 million, or 9.9%, with a gross profit margin decrease from 80.1% to 79.1% due to lower margin sales to stocking distributors[99]. - The company expects gross profit to increase as revenue grows, although gross margin may fluctuate due to changes in average selling prices and manufacturing processes[92]. Legal and Patent Matters - The company has a patent portfolio of 90 granted U.S. patents and 31 granted patents worldwide, with ongoing litigation against Stryker and Zimmer Biomet for patent infringement[83]. - Royalty expense for the nine months ended September 30, 2025 was $4.7 million, with an aggregate royalty rate of 3.1%[123].