Financial Performance - The company had approximately $60.6 million in cash, cash equivalents, and short-term investments as of September 30, 2025, with a projected runway into Q1 2027[4][5]. - Total operating expenses for Q3 2025 were approximately $12.1 million, a decrease of $0.7 million from $12.8 million in Q3 2024, primarily due to reduced clinical trial expenses[6]. - Net cash used in operating activities for Q3 2025 was approximately $10.8 million, an increase of $0.3 million from $10.5 million in the same period in 2024[4]. - The net loss attributable to common stockholders for Q3 2025 was $11.3 million, compared to a net loss of $11.9 million in Q3 2024[12]. - The company reported royalty revenues of $120,000 for Q3 2025, down from $165,000 in Q3 2024[12]. - Total assets as of September 30, 2025, were $63.8 million, down from $97.2 million as of December 31, 2024[14]. Clinical Trial Updates - Cardiff Oncology reported a 19% improvement in confirmed objective response rate (ORR) for the 30mg onvansertib cohort compared to the control arm in the ongoing Phase 2 CRDF-004 trial for first-line RAS-mutated metastatic colorectal cancer (mCRC) as of July 8, 2025[2]. - The median progression-free survival (PFS) has not yet been reached, but early PFS data show a trend favoring the 30mg onvansertib arm versus control[3]. - The company expects to provide an update from the ongoing Phase 2 CRDF-004 trial in Q1 2026[3]. Market Opportunity - Onvansertib is positioned to address a significant medical need, with approximately 150,000 new colorectal cancer patients diagnosed annually in the U.S.[2].

Business Overview - The company primarily develops, manufactures, and markets innovative respiratory products, including portable oxygen therapy solutions and the Simeox product for airway clearance treatment [103]. - The majority of the company's revenue is derived from the sale and rental of portable oxygen concentrator systems and related accessories [104]. - The company aims to expand its domestic home medical equipment provider and reseller network, focusing on business-to-business partnerships [105]. - There is a significant international market opportunity, particularly in Europe, where oxygen reimbursement for respiratory conditions exists [105]. - The company has established a base of operations for sales and customer service in the Netherlands and uses a contract manufacturer in the Czech Republic to support European sales volumes [105]. - The company is focused on expanding in the Asia-Pacific region and Latin America, adding sales representatives to establish new distributors in promising markets [105]. Financial Performance - Sales revenue increased by $4.2 million, or 5.6%, to $79.1 million for the three months ended September 30, 2025, compared to $74.9 million in the same period of 2024 [108]. - Total revenue for the three months ended September 30, 2025, was $92.4 million, up 4.0% from $88.8 million in the same period of 2024 [108]. - Approximately 51,100 oxygen systems were sold in the three months ended September 30, 2025, representing a 16.4% increase from approximately 43,900 systems sold in the same period of 2024 [108]. - Domestic direct-to-consumer sales decreased by 17.9% to $15.8 million for the three months ended September 30, 2025, compared to $19.2 million in the same period of 2024 [113]. - International business-to-business sales increased by 18.8% to $38.4 million for the three months ended September 30, 2025, compared to $32.3 million in the same period of 2024 [112]. - Total gross profit for the three months ended September 30, 2025, was $41.3 million, a slight decrease from $41.3 million in the same period of 2024 [114]. - Net loss decreased by $0.7 million, or 11.2%, for the three months ended September 30, 2025, primarily due to an increase in sales revenue and lower operating expenses [125]. - Sales revenue for the nine months ended September 30, 2025 was $226.7 million, an increase of $14.3 million, or 6.7%, compared to the same period in 2024, driven by higher demand in international and domestic business-to-business sales [126]. - Domestic business-to-business sales increased by 17.3% for the nine months ended September 30, 2025, while international business-to-business sales rose by 19.6% during the same period [128][129]. - Total gross profit for the nine months ended September 30, 2025 was $119.0 million, a slight increase of $0.6 million, or 0.5%, compared to the same period in 2024 [131]. Expenses and Costs - Research and development expenses increased by $1.3 million, or 37.6%, to $4.8 million for the three months ended September 30, 2025, compared to $3.5 million in the same period of 2024 [118]. - Research and development expenses decreased by $1.6 million, or 10.4%, for the nine months ended September 30, 2025, primarily due to a reduction in consulting expenses [135]. - Sales and marketing expenses decreased by $4.3 million, or 5.5%, for the nine months ended September 30, 2025, mainly due to lower media and advertising costs [136]. - General and administrative expenses decreased by $1.1 million, or 5.7%, to $19.3 million for the three months ended September 30, 2025, compared to $20.4 million in the same period of 2024 [120]. - General and administrative expenses decreased by $3.7 million, or 6.7%, for the nine months ended September 30, 2025, primarily due to lower bad debt expenses and changes in fair value of the earnout liability [137]. Cash Flow and Assets - Cash and cash equivalents as of September 30, 2025, totaled $106.5 million, consisting of highly liquid investments with a maturity of three months or less [142]. - Cash used in operating activities for the nine months ended September 30, 2025, was $(10.3) million, compared to cash provided of $8.9 million in the same period of 2024, representing a change of $(19.2) million or -215.0% [146]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $24.4 million, a significant increase of $23.8 million or 4541.7% compared to $0.5 million in 2024 [146]. - Total current assets increased to $203.7 million as of September 30, 2025, from $185.5 million in 2024, while total current liabilities decreased to $64.9 million from $76.7 million [146]. - As of September 30, 2025, the company had cash, cash equivalents, and restricted cash totaling $107.8 million, along with $16.7 million in marketable securities [168]. Tax and Net Loss - Income tax benefit increased by $0.1 million, or 44.6%, for the three months ended September 30, 2025 compared to the same period in 2024, attributed to lower foreign and state taxes [122]. - Income tax benefit for the nine months ended September 30, 2025 increased by $0.1 million, or 53.5%, compared to the same period in 2024, attributed to lower foreign and state taxes [139]. - Net loss for the nine months ended September 30, 2025, decreased by $10.5 million, or 40.2%, to $(15.6) million compared to $(26.1) million for the same period in 2024 [141]. Market and Currency Risks - The company continues to monitor potential supply chain constraints and inflationary pressures that could impact costs and availability of raw materials [100]. - A hypothetical 10% adverse change in foreign exchange rates would have resulted in an estimated $8.4 million decline in revenue for the nine months ended September 30, 2025 [167]. - The company is exposed to foreign currency exchange risk, with the majority of revenue in U.S. dollars and European sales in Euros, leading to potential fluctuations in net income [166]. - The company has begun entering into foreign exchange forward contracts to hedge against adverse currency exchange rate movements, which will reduce but not eliminate the impact on revenue and cash flows [167]. - The volatility of exchange rates is influenced by factors that cannot be reliably forecasted, posing a risk to future operations as international presence grows [166]. Future Outlook - The company expects existing capital resources and cash generated from product sales to meet projected operating and investing requirements for at least the next 12 months [93]. - Future funding requirements will depend on various factors, including market acceptance of products and costs related to research and development activities [144]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $4.4 million, compared to $(5.9) million for the same period in 2024 [163]. - The effective tax rate for the nine months ended September 30, 2025, increased due to a lower net loss and foreign and state taxes [140]. - The company does not hold or issue financial instruments for trading purposes, focusing instead on liquidity and capital preservation [165].

Financial Performance - Total revenue for the three months ended September 30, 2025, was $240.3 million, a significant increase from $52.8 million for the same period in 2024, representing a growth of approximately 354%[146] - Net income for the quarter was $384.6 million, compared to a net loss of $51.7 million in the prior year, indicating a turnaround in profitability[146] - The company generated EBITDA of $662.7 million for the quarter, compared to $(18.8) million in the same quarter of 2024[146] - Adjusted EBITDA for Q3 2025 was $91.7 million, with an adjusted EBITDA margin of 38%, compared to $2.5 million and 5% in Q3 2024[189] - Total revenue increased to $240.3 million in Q3 2025 from $52.8 million in Q3 2024, driven by a significant rise in Bitcoin mining revenue[202] - Bitcoin mining revenue rose to $232.9 million in Q3 2025, up from $49.6 million in Q3 2024, attributed to an increase in average Bitcoin price and operating hashrate[204] - Selling, general and administrative expenses surged to $138.4 million in Q3 2025 from $25.2 million in Q3 2024, largely due to increased stock-based compensation and payroll taxes[208] - Impairment of assets for Q3 2025 was $16.3 million, compared to $6.9 million in Q3 2024, indicating increased asset write-downs[191] - Depreciation expense for Q3 2025 was $85.2 million, up from $33.9 million in Q3 2024, primarily due to hardware expansion[209] - Income tax expense for Q3 2025 was $(190.7) million, significantly higher than $(1.3) million in Q3 2024, driven by deferred tax expenses[220] Operational Capacity - As of September 30, 2025, the company had approximately 2,100 GPUs operating in its data centers, contributing to its AI Cloud Services revenue[143] - The installed hashrate capacity for Bitcoin mining operations was approximately 50 EH/s as of September 30, 2025[144] - The company procured approximately 21,200 GPUs during the quarter, increasing its total GPU fleet to approximately 23,300 GPUs[156] - The company has three data center sites in Texas, with the Childress site having approximately 650MW of operating capacity and an installed hashrate capacity of approximately 40.1 EH/s[149] - Average operating hashrate increased to 45.3 EH/s in Q3 2025 from 12.1 EH/s in Q3 2024, enhancing mining efficiency[204] Contracts and Agreements - The company signed multi-year cloud services contracts for approximately 5,000 GPUs during the quarter, with additional contracts signed in October 2025 for 4,000 GPUs and 1,100 GPUs[154] - A significant agreement with Microsoft was established to provide dedicated GPU services valued at approximately $9.7 billion through 2031[155] - The company entered into GPU purchase agreements totaling approximately $1.1 billion for over 20,000 GPUs, expected to be delivered by early 2026[231][235] Cash and Liquidity - As of September 30, 2025, cash and cash equivalents were $1,032.3 million, providing a strong liquidity position for future investments[146] - Cash and cash equivalents as of September 30, 2025, totaled $1,032.3 million, with a net operating cash inflow of $142.4 million for the quarter[222] - Net cash from operating activities was $142.4 million for the three months ended September 30, 2025, compared to a net cash used of $(3.9) million for the same period in 2024[243] - Net cash from financing activities was $606.1 million for the three months ended September 30, 2025, compared to $84.7 million in 2024, mainly from the issuance of 23,041,102 shares[249] Market and Economic Factors - Bitcoin mining rewards are subject to "halving" adjustments, with the next halving expected to reduce the reward to 3.125 Bitcoins on April 20, 2024, and further reductions to 1.5625 Bitcoins in 2028 and 0.78125 Bitcoins in 2032[168] - The company faces potential disruptions in the global supply chain, which could lead to shortages of advanced mining machines, impacting operational efficiency[171] - Access to low-cost electricity, particularly renewable power, is critical for the company's Bitcoin mining and HPC services, as energy consumption is extensive[172] - Regulatory scrutiny on the energy and environmental impact of Bitcoin mining may lead to new measures that could restrict operations or increase power costs[173] - The company competes with various global Bitcoin miners and HPC service providers, which may increase competition and reduce its share of Bitcoin network rewards[175] - Inflation and macroeconomic risks have led to increased operating expenses, which could adversely affect the company's financial condition and results of operations[176] - Tariffs imposed by the United States on imported miners and equipment could result in higher costs and impact the company's operational timelines[182] Performance Metrics - Key performance indicators include EBITDA and Adjusted EBITDA, which are used to assess the company's financial condition and operational performance[183] - Net electricity costs per Bitcoin mined remained stable at $35.4 in Q3 2025, compared to $35.3 in Q3 2024, showing consistent operational efficiency[200] - Interest income rose to $7.1 million in Q3 2025 from $2.3 million in Q3 2024, attributed to an increase in cash balances[215] - Unrealized gain on financial instruments for Q3 2025 was $665.0 million, compared to nil in Q3 2024, related to changes in fair value of financial transactions[218] Investments and Future Plans - The company is focusing on power cost optimization initiatives at its Childress site to enhance profitability through energy trading[254] - Research and development efforts are ongoing to optimize operational environments and efficiencies in proprietary data centers[253] - The company has issued $1 billion in convertible notes, maturing in 2031, with an initial conversion price of approximately $85.63 per share[228]

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 September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39759 _______________________ ...

Revenue and Growth - Cell Processing revenue for Q3 2025 was $25.4 million, up 33% from Q3 2024[1] - Total revenue for Q3 2025 was $28.1 million, an increase of 31% from $21.4 million in Q3 2024[12] - The company raised its 2025 full-year Cell Processing revenue guidance to $93.0 million - $94.0 million, reflecting year-over-year growth of 26% to 28%[25] - The company expects total 2025 revenue guidance of $95.0 million to $96.0 million, representing a 27% - 29% increase compared to 2024[21] - Product revenue for Q3 2025 was $26,250,000, a 31.6% increase from $19,928,000 in Q3 2024[37] - Total revenue for the nine months ended September 30, 2025, reached $77,429,000, up 30% from $59,539,000 in the same period of 2024[42] - Total revenues for the nine months ended September 30, 2025, reached $71,449,000, compared to $64,000,000 for the same period in 2024, reflecting a growth of approximately 11%[53] Profitability and Margins - Adjusted EBITDA for Q3 2025 was $7.8 million, or 28% of revenue, compared to $5.0 million, or 23% of revenue, in Q3 2024[24] - Gross margin (GAAP) for Q3 2025 was 62%, down from 63% in Q3 2024, while adjusted gross margin was 64%, down from 67%[18] - Gross profit for Q3 2025 was $17,325,000, representing a gross margin of 62%, compared to 63% in Q3 2024[42] - Adjusted operating income for Q3 2025 was $1,293,000, compared to $167,000 in Q3 2024[46] - Adjusted EBITDA for the three months ended September 30, 2025, was $7,832,000, representing 28% of revenue, compared to $5,021,000 or 23% of revenue in the same quarter of 2024[50] - Adjusted gross margin for the three months ended September 30, 2025, was 66%, compared to 67% in the same period of 2024[56] Net Income and Losses - Net income (GAAP) for Q3 2025 was $0.6 million, compared to a net loss of $0.5 million in Q3 2024[18] - Net income for Q3 2025 was $621,000, a significant improvement from a net loss of $1,703,000 in Q3 2024[38] - For the three months ended September 30, 2025, BioLife Solutions reported a net income of $621,000 compared to a net loss of $471,000 for the same period in 2024[47] - Adjusted net income for the three months ended September 30, 2025, was $2,044,000, significantly up from $34,000 in the prior year[47] - Operating loss for the nine months ended September 30, 2025, was $17,949,000, compared to a loss of $5,019,000 in the same period of 2024[46] - Operating loss for the nine months ended September 30, 2025, was $(16,917,000), compared to $(4,481,000) for the same period in 2024[53] Cash and Assets - Cash, cash equivalents, and marketable securities as of September 30, 2025, were $98.4 million[24] - Cash and cash equivalents at the end of Q3 2025 were $29,481,000, down from $24,161,000 at the end of Q3 2024[41] - Total assets as of September 30, 2025, were $392,081,000, slightly down from $399,487,000 at the end of 2024[40] - The company reported a net cash provided by operating activities of $15,199,000 for the nine months ended September 30, 2025, compared to $6,786,000 in 2024[41] Expenses and Costs - The company incurred $15,521,000 in IPR&D expenses during the nine months ended September 30, 2025, primarily related to the PanTHERA acquisition[50] - The company reported a significant increase in share-based compensation, totaling $15,897,000 for the nine months ended September 30, 2025, compared to $12,233,000 in the prior year[50] - The company incurred acquisition and divestiture costs of $1,245,000 for FY2024, with YTD 2025 costs amounting to $1,309,000[60][61] - Depreciation expenses for FY2024 totaled $643,000, while YTD 2025 expenses reached $588,000[60][61] - Interest expense for FY2024 was $766,000, with interest income for YTD 2025 reported at $(1,875,000)[60][61] Divestitures and Acquisitions - The divestiture of the evo cold chain logistics business was completed for $25.5 million in cash[7] - The company anticipates the divestiture of evo to qualify as Discontinued Operations in the Annual Report for the year ended December 31, 2025[51] Accumulated Deficit - The accumulated deficit increased to $(350,766,000) as of September 30, 2025, from $(335,101,000) at the end of 2024[40] Other Financial Metrics - For FY2024, the company reported a total loss from continuing operations of $8,789,000, with Q3 showing a slight income of $300,000[60] - Adjusted EBITDA from continuing operations for FY2024 was $13,337,000, representing 18% of revenue[60] - In Q1 2025, the company experienced a loss from continuing operations of $14,634,000, with Q2 showing a significant loss of $15,454,000[61] - Adjusted EBITDA from continuing operations for YTD 2025 reached $17,722,000, which is 25% of revenue[61] - Share-based compensation (non-cash) totaled $15,282,000 for FY2024, with Q1 2025 reporting $15,468,000[60][61] - The company recorded an inventory reserve cost of $247,000 in Q4 2024[60]

Revenue Performance - Total revenues for Q3 2025 were $592.2 million, a 34.7% increase from $439.8 million in Q3 2024[3] - Product revenues increased by 35.3% to $590.2 million in Q3 2025, driven by higher volume and average selling price improvements[3] - Total revenues for the nine months ended September 30, 2025, were $1.64 billion, up 34.4% from $1.22 billion in the same period of 2024[26] Test Processing - Approximately 893,600 tests were processed in Q3 2025, representing a 15.2% increase from approximately 775,800 tests in Q3 2024[4] - The company processed approximately 211,000 oncology tests in Q3 2025, a 53.9% increase from approximately 137,100 in Q3 2024[7] Gross Margin and Expenses - Gross margin for Q3 2025 was 64.9%, up from 61.8% in Q3 2024, with gross margin amounting to $384.4 million[6] - Operating expenses for Q3 2025 were $482.0 million, a 54.9% increase from $311.1 million in Q3 2024, primarily due to salary and compensation expenditures[6] - Research and development expenses increased to $173.4 million in Q3 2025, compared to $96.9 million in Q3 2024, reflecting an increase of 79.3%[26] - Selling, general and administrative expenses rose to $308.5 million in Q3 2025, up 43.9% from $214.2 million in Q3 2024[26] - Total cost and expenses for Q3 2025 were $689.8 million, a 43.8% increase from $479.1 million in Q3 2024[26] Net Loss - Natera reported a net loss of $87.5 million in Q3 2025, compared to a net loss of $31.6 million in Q3 2024[8] - The net loss for Q3 2025 was $87.5 million, compared to a net loss of $31.6 million in Q3 2024, representing an increase in loss of 176.5%[26] - The comprehensive loss for the nine months ended September 30, 2025, was $255.3 million, compared to $134.3 million in the same period of 2024, indicating an increase of 90.0%[26] - Basic and diluted net loss per share for Q3 2025 was $0.64, compared to $0.26 in Q3 2024, reflecting a deterioration of 146.2%[26] Cash Position and Guidance - As of September 30, 2025, Natera held approximately $1,042.4 million in cash and cash equivalents, up from $968.3 million at the end of 2024[9] - Natera raised its 2025 annual revenue guidance by $160 million at the midpoint, now expecting $2.18 billion to $2.26 billion[7] - The anticipated gross margin for 2025 is approximately 62% to 64% of revenues, with selling, general and administrative costs projected at $1.08 billion to $1.18 billion[10] Share Information - The weighted-average number of shares used in computing basic and diluted net loss per share increased to 137.2 million in Q3 2025 from 123.8 million in Q3 2024[26] Interest Income - Interest and other income, net, for the nine months ended September 30, 2025, was $35.4 million, compared to $32.3 million in the same period of 2024, showing an increase of 9.6%[26]

Financial Performance - Revenue for Q3 2025 was $37.0 million, a decrease of 1% year-over-year from $37.5 million in Q3 2024, primarily due to lower Institutional revenue[28]. - Learning Membership revenue increased by 5% year-over-year to $33.0 million, representing 89% of total Company revenue, with Active Members at 34.3 thousand and ARPM at $374, a 24% increase year-over-year[28][32]. - Institutional revenue was $3.7 million, accounting for 10% of total revenue, with quarterly bookings of $6.8 million, a decrease of 20% year-over-year due to funding delays[28][39]. - Gross margin for Q3 2025 was 62.9%, down from 70.5% in Q3 2024, attributed to investments in Expert pay and incentives, but improved sequentially by approximately 140 basis points from Q2 2025[28][42]. - Net loss for Q3 2025 was $18.7 million, an improvement from a net loss of $25.0 million in Q3 2024, with a non-GAAP adjusted EBITDA loss of $10.2 million, better than the guidance of negative $11.0 million to negative $13.0 million[28][29]. - Total revenue for Q3 2025 was $37.0 million, a decrease of 1% from $37.5 million in Q3 2024, driven by a 32% decline in Institutional revenue[62]. - Consumer revenue for Q3 2025 was $33.2 million, representing 89% of total revenue, a 4% increase from $31.9 million in Q3 2024[62]. - As of September 30, 2025, cash and cash equivalents were $32.7 million, down from $52.5 million at the end of 2024[63]. - The company entered into a loan agreement for up to $50 million, borrowing $20 million under the Term Loan to support working capital and growth initiatives[55]. - The company expects Q4 2025 revenue in the range of $45-47 million and full-year revenue between $175-177 million[37]. - Non-GAAP adjusted EBITDA loss for the full year is expected to be in the range of $19-21 million, reflecting improvements in marketing efficiency and operating leverage[37][35]. - Net loss for the nine months ended September 30, 2025, was $46,908 thousand, an improvement from a net loss of $51,371 thousand in the same period of 2024, representing a 9% decrease[66]. - Non-GAAP adjusted net loss for the nine months ended September 30, 2025, was $24,287 thousand, compared to $19,133 thousand in 2024, indicating a 27% increase in losses[74]. Operational Efficiency - The company experienced a 960 basis point improvement in non-GAAP adjusted EBITDA margin year-over-year, driven by improved operating efficiency and cost reductions across every P&L line item[15]. - The company reduced headcount by approximately 27% year-over-year as of September 30, 2024, contributing to improved operational efficiency[15]. - Sales and marketing expenses for Q3 2025 were $16.6 million, a decrease of $3.7 million from $20.3 million in Q3 2024, reflecting improved marketing efficiency[44][46]. - General and administrative expenses for Q3 2025 were $25.8 million, down $6.0 million from $31.8 million in Q3 2024, indicating effective cost control measures[49]. - Non-GAAP sales and marketing expenses for the nine months ended September 30, 2025, were $44,703 thousand, down 13% from $51,515 thousand in 2024[68]. - Non-GAAP general and administrative expenses for the nine months ended September 30, 2025, were $59,380 thousand, a decrease of 11% from $66,508 thousand in 2024[70]. - The company is implementing new user experiences for students and Experts in Q4 2025 to address operational challenges and drive growth[78]. AI and Technology Integration - A 2.0 version of the Live Learning Platform was launched, achieving a reduction of approximately 50% in audio/video error rates and nearly 40% cost savings per session[7]. - The company is targeting nearly 100% of its traffic on new codebases written with AI by the end of November 2025[6]. - AI-driven improvements have lifted sales conversion by more than 10% through real-time AI capabilities[13]. - The company is undergoing a significant replatforming to modern, decoupled systems, enabling deeper AI integration and customer-facing innovations[6]. - The new consumer dashboard integrates AI Practice Hub, leading to over 50% growth in the consumption of practice content since launch[9]. - Nerdy is rolling out AI-powered session analytics via a new tool that generates actionable recommendations and reliable evaluations, streamlining reviews from less than 2% of sessions to comprehensive coverage[26]. Partnerships and Insights - The partnership with Carnegie Mellon University has yielded insights that enhance session quality and improve retention strategies[12]. - The partnership between Nerdy and Carnegie Mellon has delivered significant insights into effective tutoring dynamics, leveraging advanced discourse analysis and large language models (LLMs) to enhance session quality[26]. - Insights from real-world data analysis revealed critical patterns in student expectations and tutor interactions, demonstrating the importance of proactive feedback loops[26]. - The project highlighted how session-level insights scale to platform-wide trends, improving overall engagement metrics[26]. - High-density student-tutor exchanges can boost engagement and knowledge retention by up to 30% through targeted interventions addressing technical glitches and mismatched pacing[26]. - The project identified underperforming tutors early, paving the way for broader quality enhancements across end-to-end user experiences[26]. Future Outlook and Risks - The company expects continued sequential quarterly gross margin improvement into Q4 2025 as the mix of Consumer revenue shifts towards higher frequency and higher-priced Learning Memberships[43]. - The decline in Active Members is expected to impact Consumer revenue, but improvements in ARPM and retention are anticipated to partially offset this decline[34]. - The company faces significant risks that could cause actual results to differ materially from forward-looking statements, including evolving offerings and high levels of indebtedness[95]. - There is a history of net losses and negative operating cash flows, which may necessitate seeking additional liquidity sources[95]. - Risks associated with customer acquisition and retention, as well as scaling operations in both Consumer and Institutional businesses, are highlighted[95]. - The company is subject to litigation, regulatory, and reputational risks due to many learners being minors[95]. - There are uncertainties related to the development and use of artificial intelligence, including regulatory risks[95]. - The company has filed its Annual Report on Form 10-K on February 27, 2025, and its Quarterly Report on Form 10-Q on November 6, 2025, detailing various risks[96].

Revenue Growth - Revenues increased 9.9% to $1,460.3 million for the three months ended September 30, 2025, compared to $1,328.9 million for the same period in the prior year[158]. - Revenues increased 9.3% to $2,851.4 million for the six months ended September 30, 2025, compared to $2,608.4 million for the same period in the prior year[158]. - Total revenues increased by 9.9% to $1,460.3 million for the three months ended September 30, 2025, and by 9.3% to $2,851.4 million for the six months ended September 30, 2025, compared to the same periods in 2024[199]. - Service revenues rose by 12.9% to $714.9 million for the three months ended September 30, 2025, reflecting growth across all segments[171]. - United States revenues increased by 9.8% to $1,075.2 million for the three months ended September 30, 2025, compared to $979.5 million for the same period in 2024[172]. - Ireland revenues increased by 19.8% to $27.3 million for the three months ended September 30, 2025, compared to $22.8 million in the prior year[172]. - Healthcare segment revenues increased by 9.5% to $1,033.8 million for the three months ended September 30, 2025, and by 8.8% to $2,008.5 million for the six months ended September 30, 2025, compared to the same periods in 2024[200]. - AST segment revenues increased by 9.7% to $281.5 million for the three months ended September 30, 2025, and by 11.1% to $562.7 million for the six months ended September 30, 2025, compared to the same periods in 2024[202]. - Life Sciences segment revenues increased by 13.3% to $145.0 million for the three months ended September 30, 2025, and by 9.3% to $280.2 million for the six months ended September 30, 2025, compared to the same periods in 2024[203]. Profitability - Gross profit percentage for the second quarter of fiscal 2026 was 44.2%, up from 43.6% in the second quarter of fiscal 2025[159]. - Gross profit for the three months ended September 30, 2025, was $645.9 million, an increase of 11.6% from $578.8 million in the prior year[180]. - The Healthcare segment's operating margins were 25.1% for the second quarter of fiscal 2026, compared to 24.1% for the same period in fiscal 2025[204]. - The AST segment's operating margins were 45.3% for the second quarter of fiscal 2026, compared to 42.8% for the same period in fiscal 2025[206]. - Healthcare segment operating income increased 13.8% to $259.5 million for the three months ended September 30, 2025, compared to $228.0 million in the same prior year period[204]. - AST segment operating income rose 16.1% to $127.6 million for the three months ended September 30, 2025, compared to $109.9 million during the same prior year period[206]. - Life Sciences segment operating income increased 11.5% to $59.9 million for the three months ended September 30, 2025, compared to $53.7 million for the same prior year period[207]. Cash Flow and Capital Management - Cash flows from operations were $707.8 million for the first six months of fiscal 2026, compared to $554.5 million for the same period in fiscal 2025[161]. - Free cash flow was $527.7 million for the first six months of fiscal 2026, compared to $344.5 million for the same period in fiscal 2025[161]. - Net cash provided by operating activities was $707.8 million for the first six months of fiscal 2026, up from $554.5 million in the first six months of fiscal 2025[208]. - Free cash flow increased to $527.7 million in the first six months of fiscal 2026 from $344.5 million in the same period of fiscal 2025[212]. - Capital expenditures totaled $180.1 million for the first six months of fiscal 2026, down from $210.0 million during the same prior year period[210]. - The debt-to-total capital ratio was 21.3% at September 30, 2025, down from 23.6% at March 31, 2025[162]. - Debt-to-total capital ratio improved to 21.3% at September 30, 2025, down from 25.3% at September 30, 2024[213]. - The company declared and paid cash dividends totaling $1.20 per ordinary share during the first six months of fiscal 2026[162]. - Total cash dividends paid to ordinary shareholders increased to $118.1 million, or $1.20 per share, in the first six months of fiscal 2026, compared to $107.7 million, or $1.09 per share, in the same period of fiscal 2025[219]. Expenses and Taxation - Total operating expenses for the three months ended September 30, 2025, were $380.1 million, up 5.8% from $359.1 million in the same period in 2024[182]. - Research and development expenses increased by 4.4% to $28.2 million for the three months ended September 30, 2025, focusing on new product development and technological innovations[184]. - Interest expense decreased by $4.8 million and $19.4 million for the three months and six months ended September 30, 2025, respectively, compared to the same periods in 2024, primarily due to a lower principal amount of debt outstanding[189]. - Non-operating expenses, net decreased by $12.1 million to $12.7 million for the three months ended September 30, 2025, and by $8.2 million to $26.8 million for the six months ended September 30, 2025, compared to the same periods in 2024[188]. - Income tax expense increased by $17.1 million (39.3%) to $60.6 million for the three months ended September 30, 2025, and by $35.7 million (45.3%) to $114.5 million for the six months ended September 30, 2025, compared to the same periods in 2024[190]. - The effective income tax rate increased to 23.9% for the three months ended September 30, 2025, and to 23.6% for the six months ended September 30, 2025, compared to 22.3% and 21.3% for the same periods in 2024, respectively[191]. Acquisitions and Restructuring - The company completed a tuck-in acquisition for approximately $15.0 million during the first six months of fiscal 2026[152]. - Acquisition and integration expenses totaled $1.3 million for the three months ended September 30, 2025[153]. - The restructuring plan is expected to improve income from operations by approximately $25.0 million per year starting in fiscal 2026[185]. Backlog and Future Outlook - The Healthcare segment's backlog increased to $427.5 million at September 30, 2025, from $405.3 million at September 30, 2024[201]. - The Life Sciences backlog increased to $113.7 million at September 30, 2025, from $75.6 million at September 30, 2024, primarily due to an increase in orders[204]. - Forward-looking statements indicate potential risks including operating costs, integration of acquired businesses, and changes in tax laws that could affect future performance[229]. - The company does not undertake to update forward-looking statements unless legally required, indicating a cautious approach to future projections[230]. Legal and Financial Instruments - The company is involved in various legal proceedings and claims, which may impact financial results but are not expected to have a material adverse effect overall[226][227]. - The company held net foreign currency forward contracts to buy €8.5 million and to sell A$9.0 million and NZ$8.0 million as of September 30, 2025[234]. - Commodity swap contracts were in place to buy 0.3 million pounds of nickel, indicating hedging against raw material price fluctuations[235]. Current Assets and Liabilities - Total current assets increased to $21,597.1 million from $20,762.0 million as of March 31, 2025[224]. - Total current liabilities increased to $25,126.7 million from $23,891.0 million, reflecting higher payables[224]. - Goodwill rose significantly to $610.5 million from $297.2 million, indicating potential acquisitions or increased valuations[224].

Financial Performance - Revenue for Q3 2025 was $149.0 million, a 2% decrease from Q3 2024, primarily due to a decline in instrument revenue [4]. - Gross margin decreased to 67% in Q3 2025 from 70% in Q3 2024, attributed to changes in product mix and higher inventory write-downs [5]. - Operating expenses were $132.5 million, a 10% decrease from $147.9 million in Q3 2024, mainly due to lower personnel and legal expenses [6]. - Net loss for Q3 2025 was $27.5 million, compared to a net loss of $35.8 million in Q3 2024 [7]. - Q4 2025 revenue guidance is projected to be between $154 million and $158 million, indicating a 6% decline year-over-year but a 5% sequential growth at the midpoint [9]. - Instruments revenue for Q3 2025 was $12.0 million, down from $19.1 million in Q3 2024, while consumables revenue increased to $127.9 million [18]. - Total revenue for the nine months ended September 30, 2025, was $476.8 million, compared to $445.8 million for the same period in 2024 [18]. Cash and Assets - Cash and cash equivalents and marketable securities totaled $482.1 million as of September 30, 2025, reflecting a $35 million increase from the previous quarter [8]. - Total assets increased to $1,027,361 million as of September 30, 2025, up from $918,636 million on December 31, 2024, representing an increase of approximately 11.9% [21]. - Total current assets rose to $659,827 million, compared to $584,387 million at the end of 2024, reflecting a growth of about 12.9% [21]. - Cash and cash equivalents increased to $432,508 million, up from $344,067 million, marking a significant rise of approximately 25.7% [21]. - Accounts receivable decreased to $43,779 million from $87,862 million, a decline of about 50.1% [21]. - Inventory decreased to $61,956 million from $83,107 million, representing a reduction of approximately 25.5% [21]. Liabilities and Equity - Total liabilities grew to $242,241 million, up from $208,502 million, indicating an increase of around 16.2% [21]. - Total stockholders' equity reached $785,120 million, compared to $710,134 million, showing an increase of approximately 10.5% [21]. - Accrued expenses and other current liabilities decreased to $35,766 million from $41,165 million, a decrease of about 13.1% [21]. - Deferred revenue increased to $22,139 million from $20,658 million, reflecting a growth of approximately 7.1% [21]. - Operating lease right-of-use assets increased to $63,650 million from $57,290 million, indicating a rise of about 11.5% [21]. Product Development - The company launched the next-generation Chromium Flex and Xenium Protein, enhancing capabilities in single cell analysis and spatial multiomics [10]. Regional Performance - The Americas accounted for $79.9 million of total revenue in Q3 2025, with the United States contributing $77.2 million [18].

Exhibit 99.1 Doximity Announces Fiscal 2026 Second Quarter Financial Results Total revenues of $168.5 million, up 23% year-over-year Operating cash flow of $93.9 million, up 37% year-over-year Free cash flow of $91.6 million, up 37% year-over-year SAN FRANCISCO, Calif., November 6, 2025 -- Doximity, Inc. (NYSE: DOCS), the leading digital platform for U.S. medical professionals, today announced results of its fiscal 2026 second quarter ended September 30, 2025. "Our platform continues to grow with new AI too ...