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: 001-39473 LENSAR, INC. (Exact name of registrant as specified in its charter) Delaware 32-0125724 (State or other jurisdiction ...

Financial Performance - The gross profit for the three months ended September 30, 2025, was $7.3 million, compared to $7.2 million for the same period in 2024, reflecting a slight increase[112]. - For the nine months ended September 30, 2025, the gross profit was $23.7 million, compared to $23.8 million for the same period in 2024, indicating a marginal decrease[113]. - The Company recorded operating income of $1.3 million for the three months ended September 30, 2025, compared to $1.5 million for the same period in 2024[112]. - The operating income for the nine months ended September 30, 2025, was $4.9 million, down from $7.6 million for the same period in 2024[113]. Investments and Receivables - As of September 30, 2025, the Company held a gross balance of investments in notes receivable of $28.4 million, with the largest borrower's balance at $21.7 million, representing 76% of total gross notes receivable[43]. - The allowance for credit losses as of September 30, 2025, was approximately $1.467 million, with specific allocations of $134,000 for accounts receivable, $346,000 for notes receivable, and $987,000 for equity method investments[47]. - The Company's notes receivable balance related to loans to buyers of charged-off and nonperforming receivable portfolios was $8.9 million as of September 30, 2025, down from $9.6 million as of December 31, 2024[64]. - The Company performed a quarterly review of all outstanding loan receivables to assess credit quality and potential impairment indicators[53]. - The Company engaged in a due diligence process to mitigate concentration risk, requiring security from each borrower and leveraging its valuation expertise[45]. - The Company has not experienced significant collectability issues with its accounts receivable, which are primarily related to well-known academic and financial institutions[49]. Stock and Compensation - The Company issued options to purchase 70,000 shares of common stock and canceled 83,500 options during the nine months ended September 30, 2025[68]. - As of September 30, 2025, there were 2,204,100 outstanding options with a weighted average exercise price of $1.74 and an intrinsic value of $761,000[68]. - Stock-based compensation expense related to common stock options was $0.4 million for both the nine months ended September 30, 2025 and 2024[68]. - The Company recognized stock-based compensation expense of approximately $0.4 million for restricted stock awards for the nine months ended September 30, 2025 and 2024[72]. - The unrecognized stock-based compensation expense related to unvested common stock options was approximately $0.6 million as of September 30, 2025[68]. Joint Ventures - The Company's joint ventures generated total revenues of $8.264 million for the nine months ended September 30, 2025, compared to $21.692 million for the same period in 2024[75]. - The net income from joint ventures for the nine months ended September 30, 2025, was $7,875,000, compared to $13,353,000 for the same period in 2024[75]. - As of September 30, 2025, the Company recognized approximately $1.2 million in life-to-date earnings from equity method investments related to KNFH II LLC[77]. Assets and Liabilities - The total right-of-use assets as of September 30, 2025, amounted to $1,694,000, down from $2,208,000 as of December 31, 2024[88]. - The total lease liabilities as of September 30, 2025, were $1,799,000, compared to $2,317,000 as of December 31, 2024[88]. - The Company purchased real estate for $7.4 million on February 11, 2025, which includes $2.8 million allocated to the building and $4.6 million to the land[91]. - As of September 30, 2025, total property and equipment, net, was $9,486,000, an increase from $1,643,000 as of December 31, 2024[92]. - The total estimated principal repayments on outstanding debt as of September 30, 2025, were $4,100,000, with no current debt outstanding[96]. - The Company’s goodwill remained unchanged at $7,446,000 as of September 30, 2025, compared to December 31, 2024[95]. - Amortization expense for the nine months ended September 30, 2025, was $0.2 million, down from $0.3 million for the same period in 2024[93]. Regulatory and Compliance - The Company plans to adopt ASU 2025-05 related to credit losses for accounts receivable and contract assets for the fiscal year beginning January 1, 2026[59]. - The Company anticipates that ASU 2024-03 will require additional disclosures related to income statement expense information starting with the Annual Report for the year ended December 31, 2026[58]. - The Company entered into a Loan Modification Agreement on December 27, 2024, extending the maturity date of the 2021 Credit Facility to June 27, 2026, and raising the interest rate floor by 0.25% to 7.0%[101]. - As of September 30, 2025, there was no outstanding balance on the 2021 Credit Facility, and the Company was in compliance with all financial and negative covenants[102]. - The Company had aggregate federal net operating loss carry-forwards of $41.0 million as of September 30, 2025, with $22.5 million expected to be utilized[107]. - The Company does not expect the One Big Beautiful Bill Act to have a material impact on its annual effective tax rate in 2025[110].

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 (Address of principal executive offices including zip code) (State or other jurisdiction of incorporation or organization) Delaware 45-3757789 (I.R.S. Employer Identification No.) P.O. Box 125 Stewartsville, New Jersey 08886 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SEC ...

Financial Performance - Net sales for Q3 2025 reached $49,063,000, a 1.9% increase from $48,166,000 in Q3 2024[12] - Gross profit for the nine months ended September 30, 2025, was $59,262,000, compared to $58,587,000 for the same period in 2024, reflecting a year-over-year increase of 1.2%[12] - Operating income for Q3 2025 was $3,007,000, up from $2,926,000 in Q3 2024, indicating a growth of 2.8%[12] - Net income for Q3 2025 was $1,903,000, a decrease of 14.5% compared to $2,226,000 in Q3 2024[12] - Basic earnings per share for Q3 2025 were $0.50, down from $0.60 in Q3 2024, representing a decline of 16.7%[12] - For the nine months ended September 30, 2025, net income was $8,308, compared to $8,315 for the same period in 2024, reflecting a slight decrease of 0.08%[21] - Total net sales for the nine months ended September 30, 2025, reached $149,018, an increase of 0.32% from $148,547 in the same period of 2024[36] Assets and Liabilities - Total assets increased to $173,042,000 as of September 30, 2025, compared to $162,171,000 at the end of 2024, marking a growth of 6.3%[9] - Total stockholders' equity rose to $115,764,000 as of September 30, 2025, up from $106,980,000 at the end of 2024, reflecting an increase of 8.3%[10] - Current liabilities decreased to $22,087,000 as of September 30, 2025, down from $22,872,000 at the end of 2024, a reduction of 3.4%[10] - The company’s retained earnings increased to $101,025 as of September 30, 2025, from $94,498 at the end of 2024, reflecting an increase of 6.4%[18] - As of September 30, 2025, the Company had outstanding borrowings under the Loan Agreement with HSBC of $18,271,000, an increase from $17,641,000 as of December 31, 2024[39] - The Company's long-term mortgage payable decreased to $9,556,000 as of September 30, 2025, from $9,868,000 as of December 31, 2024[40] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $10,079, significantly higher than $5,604 in 2024, marking an increase of 79.5%[21] - The company reported a total of $9,753 in cash used for investing activities for the nine months ended September 30, 2025, compared to $12,343 in 2024, indicating a decrease of 21.0%[21] - The company’s cash and cash equivalents at the end of the period were $5,146, down from $5,702 at the end of September 2024, representing a decrease of 9.7%[21] - Total adjustments to reconcile net income to net cash provided by operating activities amounted to $1,771 for the nine months ended September 30, 2025, compared to a negative adjustment of $2,711 in 2024[21] Segment Performance - First Aid and Medical segment sales for the nine months ended September 30, 2025, totaled $99,122, up from $91,503 in 2024, reflecting an increase of 8.3%[36] - Cutting and Sharpening segment sales for the nine months ended September 30, 2025, were $49,896, a decrease of 12.5% from $57,044 in 2024[36] - Segment operating income for the United States segment was $2,776,000 for the three months ended September 30, 2025, compared to $2,809,000 for the same period in 2024[44] Expenses and Taxation - Selling, general and administrative expenses for the three months ended September 30, 2025 were $16,188,000, or 33.0% of net sales, an increase from $15,638,000 (32.5% of net sales) in the same period in 2024[70] - Interest expense, net for the three months ended September 30, 2025 was $422,000, a decrease of $113,000 from $535,000 in the same period of 2024[75] - The effective income tax rate for the three months ended September 30, 2025 was 22%, compared to 8% in the same period of 2024[77] Operational Metrics - The average number of days sales outstanding in accounts receivable was 51 days at September 30, 2025, down from 54 days at December 31, 2024[78] - As of September 30, 2025, the company's working capital was $76,619,000, an increase from $72,588,000 on December 31, 2024[79] - The current ratio improved to 4.47 from 4.17, indicating better short-term financial health[79] - The long-term debt to equity ratio decreased to 24.0% from 25.7%, reflecting a reduction in leverage[79] Acquisitions and Financing - The company acquired a manufacturing and distribution center in Mt. Pleasant, TN for approximately $6.0 million, with plans for expansion[81] - The company financed its manufacturing facilities with a fixed-rate mortgage at 3.8%, with approximately $10.1 million outstanding as of September 30, 2025[82] - The acquisition of Elite First Aid, Inc. for approximately $7.1 million included contingent payments based on revenue milestones[83] Risk Management and Compliance - The company is actively diversifying its supply chain to mitigate risks from tariffs and geopolitical tensions, particularly those affecting imports from China[84][85] - Cash generated from operating activities and available funds under the revolving loan agreement are expected to be sufficient to finance operations over the next twelve months[88] - The company identified a material weakness in its internal controls, which is expected to be remediated by December 31, 2025[90][92]

Exhibit 99.1 o DS . . · : i . . III 00000 Q3 2025 | Key Financial | Revenue | | | --- | --- | --- | | Measures | | 10% Y/Y | | | | 10% Y/Y (ex-FX) | | | Net Income | $1.4B | | | | 34% Net income margin | | | Adjusted EBITDA* | $2.1B | | | | 50% Adjusted EBITDA Margin | | | Free Cash Flow ("FCF")* | $1.3B | | | | 33% FCF Margin | | | Trailing Twelve Month ("TTM") FCF* | 4.5B | | | | 38% TTM FCF Margin | | Key Business | Gross Booking | $22.9B | | Metrics | Value ("GBV") | | | | | 14% Y/Y 12% Y/Y (ex-FX) | | ...

Financial Performance - Total revenues for Q3 2025 were $0.1 million, down from $0.2 million in Q3 2024, primarily from sales-based royalties unrelated to onvansertib[80]. - Net cash used in operating activities was $32.0 million for the nine months ended September 30, 2025, compared to $27.4 million in 2024[94]. - The company reported net losses of $38.6 million for the nine months ended September 30, 2025, compared to $33.6 million in 2024[95]. - Interest income remained stable at $2.5 million for the nine months ended September 30, 2025, consistent with the same period in 2024[89]. - Net cash provided by financing activities was $28,000 for the nine months ended September 30, 2025, down from $9.6 million in 2024[98]. Research and Development - Research and development expenses decreased by $1.4 million to $8.2 million in Q3 2025, mainly due to reduced clinical trial expenses[82]. - Research and development expenses increased by $3.1 million to $30.3 million for the nine months ended September 30, 2025, compared to $27.1 million in 2024[87]. - The company is focusing on leveraging PLK1 inhibition to develop therapies for cancers with significant unmet medical needs, including mCRC, mPDAC, SCLC, and mTNBC[63]. Clinical Trials - Onvansertib demonstrated a 49% confirmed objective response rate (ORR) in combination with standard-of-care treatments for RAS-mutated metastatic colorectal cancer (mCRC) in the ongoing CRDF-004 trial[71]. - The CRDF-004 trial enrolled 110 patients and is assessing the efficacy of onvansertib in combination with FOLFIRI or FOLFOX and bevacizumab[68]. - The FDA agreed to a seamless Phase 3 trial (CRDF-005) for onvansertib with an interim endpoint of ORR, aiming for accelerated approval[69]. - In the Phase 1b/2 trial for metastatic pancreatic ductal adenocarcinoma (mPDAC), onvansertib is being evaluated in combination with the newly approved NALIRIFOX[73]. - The Phase 2 trial for small cell lung cancer (SCLC) is designed to enroll 15 patients, with preliminary data showing a disease control rate of 57%[76]. - Onvansertib in combination with paclitaxel showed a 40% objective response rate in a Phase 1b trial for metastatic triple-negative breast cancer (mTNBC)[81]. Expenses and Cash Position - Selling, general and administrative expenses increased by $0.8 million to $3.9 million in Q3 2025, primarily due to an employee severance agreement[83]. - Selling, general and administrative expenses rose by $1.8 million to $11.2 million for the nine months ended September 30, 2025, compared to $9.5 million in 2024[88]. - As of September 30, 2025, the company had working capital of $47.1 million, down from $81.6 million as of December 31, 2024[90]. - The company had $60.6 million in cash, cash equivalents, and short-term investments as of September 30, 2025, sufficient to meet funding requirements for at least the next 12 months[91]. - Net cash used in investing activities was $9.4 million for the nine months ended September 30, 2025, compared to a net cash provided of $9.2 million in 2024[97]. - The company expects to continue incurring losses and will require additional capital to advance clinical trial programs[93].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ☒ 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 FORM 10-Q (Mark One) For the transition period from _______________ to _______________ Commission File Number: 001-39655 GALECTO, INC. (Exact Name of Registrant as Specified in its Charter) | Delaware | 37-19 ...

Financial Performance - Revenue increased by 7% to $1.3 billion compared to the same period last year[6] - Net income for Q3 2025 was $3.5 million, with a net income per diluted share of $0.02[6] - Adjusted EBITDA for the quarter was $17.7 million[6] - The company reported a net loss of $9,818 for the nine months ended September 30, 2025, an improvement from a net loss of $11,762 in 2024[27] Operating Costs and Cash Flow - Adjusted operating costs were $82.2 million, reflecting a 5% increase driven by strategic investments[6] - Net cash provided by operating activities was $28.9 million[6] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $104,817, down 41.0% from $177,800 in 2024[27] - Adjusted operating cash flow for the three months ended September 30, 2025, was $45,430, a decrease of 30.6% compared to $65,435 in 2024[24] Real Estate Performance - Real estate sales transactions increased by 3% to 121,516 in Q3 2025[10] - Real estate sales volume rose by 7% to $54.1 billion in Q3 2025[10] Shareholder Returns - The company distributed $24.1 million to shareholders, including $16.4 million in stock repurchases and $7.7 million in cash dividends[10] - The company incurred $46,227 in common stock repurchases during the nine months ended September 30, 2025, compared to $116,281 in 2024[27] Assets and Liabilities - Total current assets increased to $323,148 as of September 30, 2025, from $267,972 as of December 31, 2024, representing a growth of 20.6%[26] - Accounts receivable, net of allowance for credit losses, rose to $123,766 as of September 30, 2025, compared to $87,692 in 2024, an increase of 41.0%[26] - Total liabilities increased to $223,478 as of September 30, 2025, from $185,853 as of December 31, 2024, reflecting a rise of 20.2%[26] - Cash and cash equivalents, along with restricted cash, totaled $186,381 at the end of the period, down from $195,740 in 2024[27] - Customer deposits increased to $73,465 as of September 30, 2025, compared to $55,660 in 2024, marking a rise of 32.0%[26] - The company’s total equity grew to $235,265 as of September 30, 2025, from $204,869 in 2024, an increase of 14.8%[26] Customer Satisfaction - The global agent Net Promoter Score (aNPS) was 75, down from 76 in the prior-year period[10]

Revenue and Financial Performance - For the nine months ended September 30, 2025, consolidated revenues were $1,923.9 million, compared to $1,816.0 million for the same period in 2024, reflecting an increase of approximately 5.9%[179] - Revenues for the U.S. Secure Services segment increased by $80.7 million, reaching $481.6 million in Q3 2025, a 20.1% increase compared to Q3 2024[189] - The total revenue for Q3 2025 was $682.3 million, representing a 13.1% increase from $603.1 million in Q3 2024[189] - Revenues for U.S. Secure Services increased by $125.1 million (10.4%) in the nine months ended September 30, 2025, driven by new contracts and increased occupancies[219] - Total revenues for the nine months ended September 30, 2025, were $1,923.8 million, a 5.9% increase from $1,815.9 million in the same period of 2024[218] Occupancy and Capacity - The average company-wide facility occupancy rate was approximately 89% for the nine months ended September 30, 2025, with 68,157 active beds, compared to approximately 88% with 68,004 active beds for the same period in 2024[179] - The average occupancy in U.S. Secure Services facilities was approximately 90% in Q3 2025, up from 88% in Q3 2024[192] - Average occupancy in U.S. Secure Services facilities remained stable at approximately 88% of capacity for both Nine Months 2025 and Nine Months 2024[220] Operating Expenses - Operating expenses for U.S. Secure Services rose by $76.4 million to $376.0 million in Q3 2025, primarily due to labor and medical costs[197] - Operating expenses for U.S. Secure Services increased by $130.6 million (14.5%) in the nine months ended September 30, 2025, primarily due to labor and medical costs[225] - Operating expenses accounted for approximately 75% of consolidated revenues for the nine months ended September 30, 2025, compared to 73% for the same period in 2024[282] General and Administrative Expenses - General and administrative expenses increased by $15.0 million to $62.1 million in Q3 2025, reflecting a 31.9% rise compared to Q3 2024[206] - General and administrative expenses rose by $23.8 million (15.6%) in the nine months ended September 30, 2025, primarily due to senior management reorganization and higher employee-related costs[234] - General and administrative expenses represented about 11% of consolidated revenues for the nine months ended September 30, 2025, up from 8% in 2024[283] Income and Taxation - The provision for income taxes increased to $56.4 million in Q3 2025, with an effective tax rate of 24.6%, compared to $11.7 million (31.4% effective rate) in Q3 2024, a 383.5% increase[215] - The provision for income taxes increased to $68.8 million with an effective tax rate of 23.9% in Nine Months 2025, compared to a tax benefit in the previous year[243][245] Cash Flow and Liquidity - Cash, cash equivalents, and restricted cash increased to $231.6 million as of September 30, 2025, up from $118.4 million a year earlier, representing a growth of approximately 95.5%[269] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $189.9 million, down from $223.8 million in the same period of 2024, indicating a decrease of about 15.1%[270] - Net cash used in financing activities increased to approximately $232.2 million for the nine months ended September 30, 2025, compared to $186.1 million in the same period of 2024, reflecting an increase of about 24.7%[273] Debt and Financing - The company has approximately $262.6 million in borrowings under its Credit Agreement, with a 1% increase in interest rates potentially raising annual interest expenses by $3.1 million[285] - Interest expense decreased by $7.3 million in Q3 2025 compared to Q3 2024, following an amendment to the Credit Agreement that increased borrowing capacity and lowered the interest rate[212] - The company amended its Credit Agreement to increase revolving credit commitments from $310 million to $450 million, extending the maturity to July 14, 2030[253] Legal and Regulatory Risks - The company faces risks related to the federal government shutdown, which could adversely impact financial results[172] - The company is exposed to rising medical costs and must manage ongoing litigation costs, which could affect profitability[172] - The company incurred a non-cash contingent litigation reserve of $37.6 million during Nine Months 2025, representing 5.5% of revenue[235] Strategic Initiatives and Growth - The company is focused on expanding its secure services, reentry, and community-based services, as well as monitoring services and secure transportation services[177] - The company is currently in compliance with its debt covenants as of September 30, 2025, but potential future constraints could adversely impact liquidity and capital resources[264] - The company is preparing for significant growth opportunities related to federal immigration enforcement, with a focus on expanding detention capacity and related services[280] Asset Management - The company has a significant amount of goodwill and intangible assets from acquisitions, which may become impaired in the future[176] - Gain on asset divestitures was approximately $232.4 million in Q3 2025, accounting for 34.1% of revenue, related to the sale of the Lawton Correctional Facility[214] - The company sold the Lawton Correctional Facility for $312 million, resulting in a gain of approximately $228 million, which was used to pay off a Term Loan[252] Foreign Exchange and Interest Rate Exposure - A 10% change in foreign currency exchange rates could affect the company's financial position by approximately $8.6 million and impact results of operations by about $1.2 million for the nine months ended September 30, 2025[288] - Interest rate swap arrangements have been established to hedge against variable rate debt, minimizing the impact of interest rate fluctuations[286]

Financial Performance - Net income for Q3 2025 was $26.3 million, or $0.24 per diluted share, compared to $21.1 million, or $0.19 per diluted share in Q3 2024, reflecting a 24.0% increase in net income year-over-year [110]. - Total revenue for Q3 2025 was $580.4 million, an increase of $88.8 million, or 18.1%, from $491.6 million in Q3 2024 [115]. - Total management revenue for the nine months ended September 30, 2025, was $1,593.1 million, an increase of $132.3 million, or 9.1%, compared to $1,460.8 million in the same period of 2024 [116]. - CoreCivic Safety's total revenue increased by $85.8 million, or 18.7%, from $459.3 million in Q3 2024 to $545.1 million in Q3 2025 [136]. - CoreCivic Community's total revenue increased by $2.4 million, or 8.7%, from $28.2 million in Q3 2024 to $30.7 million in Q3 2025, and by $2.1 million, or 2.4%, from $88.4 million in the first nine months of 2024 to $90.5 million in 2025 [148]. - Net income for the nine months ended September 30, 2025, was $87,801, up from $63,503 for the same period in 2024, representing an increase of approximately 38% [185]. - Funds From Operations (FFO) for the nine months ended September 30, 2025, was $164,693, compared to $124,856 for the same period in 2024, indicating an increase of approximately 32% [189]. - Normalized Funds From Operations for the nine months ended September 30, 2025, was $166,367, up from $146,839 in 2024, reflecting an increase of approximately 13% [189]. Revenue and Occupancy - Management revenue increased by $88.2 million, or 18.1%, for Q3 2025, driven by a $45.3 million increase in revenue per compensated man-day, which rose by 8.7% [116]. - Average compensated occupancy for Q3 2025 was 76.7%, up from 75.2% in Q3 2024, indicating improved facility utilization [114]. - Average daily compensated population increased by 4,479, or 8.8%, to 55,236 for the three months ended September 30, 2025, compared to 50,757 for the same period in 2024 [117]. - Federal customers generated approximately 55% of total revenue for the three months ended September 30, 2025, increasing by $70.9 million, or 28.3%, compared to the same period in 2024 [118]. - Average compensated occupancy in the Safety and Community segments increased to 76.7% from 75.2% during the three months ended September 30, 2025, and to 76.8% from 74.9% during the nine months ended September 30, 2025 [117]. Expenses and Costs - Operating expenses totaled $449.6 million for the three months ended September 30, 2025, an increase of $78.8 million, or 21.2%, compared to $370.8 million for the same period in 2024 [122]. - Total expenses per compensated man-day increased to $86.22 during the three months ended September 30, 2025, from $77.02 during the same period in 2024 [127]. - Variable expenses per compensated man-day increased to $22.79 during the three months ended September 30, 2025, from $19.42 during the same period in 2024, representing a 17.4% increase [131]. - Operating expenses increased by $100.5 million, or 9.0%, during the nine months ended September 30, 2025, compared to the same period in 2024 [123]. - General and administrative expenses rose to $45.3 million in Q3 2025 from $41.2 million in Q3 2024, primarily due to increased corporate salaries and benefits [155]. Acquisitions and Investments - The acquisition of the Farmville Detention Center effective July 1, 2025, contributed to the increase in average daily compensated population [117]. - The acquisition of the Farmville Detention Center for $71.4 million is expected to result in total annual incremental revenue of approximately $40 million [145]. - The company completed the repurchase of 5.9 million shares at a total cost of $121.0 million during the nine months ended September 30, 2025 [169]. - The company approved capital expenditures of $97.5 million to $99.5 million for activating previously idled facilities [171]. Debt and Cash Management - As of September 30, 2025, the company had cash on hand of $56.6 million and $191.4 million available under its Revolving Credit Facility [173]. - The company generated $195.0 million in cash from operating activities for the nine months ended September 30, 2025, compared to $229.9 million for the same period in 2024 [177]. - The company reported a net cash flow used in investing activities of $166.8 million for the nine months ended September 30, 2025, primarily due to capital expenditures and the acquisition of the Farmville Detention Center [178]. - As of September 30, 2025, the company had $238.5 million of 4.75% senior unsecured notes and $500.0 million of 8.25% senior notes outstanding [175]. - The total weighted average effective interest rate for the company was 6.9% as of September 30, 2025 [175]. - The company has no debt maturities until October 2027, providing flexibility for future capital management [175]. Market and Operational Insights - The CoreCivic Safety segment accounted for 92.1% of total segment net operating income for Q3 2025, down from 94.3% in Q3 2024 [111]. - Operating margins were negatively impacted by start-up expenses and labor shortages, with a facility operating loss of $3.4 million during Q3 2025 [136]. - CoreCivic anticipates an increase in demand for correctional and detention facilities due to changes in immigration policy and funding levels from the federal government [139]. - The management contract with the state of Montana for inmate care is set to expire on July 31, 2026, with the potential for a total term of up to seven years, currently managing 362 inmates at the Saguaro facility and 239 at the Tallahatchie facility [147]. - The company is exposed to market risk related to interest rates, with a potential increase or decrease in interest expense of $0.4 million and $1.0 million for the three and nine months ended September 30, 2025, respectively, if rates changed by 100 basis points [195].