Business Segments and Revenue - STERIS operates in three reportable business segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences, with the majority of revenues derived from healthcare and medical device customers[11]. - For the year ended March 31, 2025, no customer represented more than 10% of total revenues in any of the segments[17][21][26]. - As of March 31, 2025, the company reported a backlog of $452.9 million, with $369.2 million related to the Healthcare segment and $83.7 million to the Life Sciences segment, indicating an increase from $425.2 million in the previous year[49][50]. - Healthcare segment revenue increased to $12,341 million in fiscal 2025 from $11,419 million in fiscal 2024, representing an increase of 8.1%[78]. - Revenues increased by $320.8 million, or 6.2%, to $5,459.5 million for the year ended March 31, 2025, compared to $5,138.7 million for the year ended March 31, 2024[205]. Research and Development - STERIS invests significantly in research and development to discover and market innovative, cost-effective products and services[45]. - The company has 607 U.S. patents and 2,315 patents in other jurisdictions, with 90 U.S. patent applications and 289 applications pending[31]. Operational Performance and Costs - STERIS experienced a rise in supply chain and labor costs during fiscal 2023 and 2024, which moderated in fiscal 2025[29]. - The company applies Lean principles across its operations to enhance performance, agility, and value[34]. - The average number of employees during fiscal 2025 was approximately 18,000, with less than 11% represented by work councils or labor unions, indicating generally good employee relations[77]. - Total employees rose to 17,787 in fiscal 2025, up from 16,768 in fiscal 2024, reflecting a growth of 6.1%[78]. - Total employee costs increased to $1,850,544 thousand in fiscal 2025 from $1,718,164 thousand in fiscal 2024, marking a rise of 7.7%[86]. - The company maintained zero Class I recalls in fiscal 2025, 2024, or 2023, demonstrating strong compliance with safety standards[89]. Environmental and Sustainability Efforts - The company has made significant investments to comply with environmental laws and regulations, focusing on improving energy and water efficiency and reducing waste[69]. - The company tracks greenhouse gas emissions and reports direct and indirect energy use, participating in the Carbon Disclosure Project[70]. - The company has developed new products aimed at reducing environmental impact, such as ultra-concentrate cleaning chemistries that offer 10 times the uses per container[71]. - The company has established key performance indicators aligned with Sustainability Accounting Standards Board (SASB) Standards for Medical Equipment & Supplies, focusing on financial materiality in sustainability reporting[56]. - STERIS has three facilities accredited to ISO 14001 and ISO 45001 standards, reflecting commitment to environmental management[82]. Regulatory and Compliance Challenges - STERIS is subject to extensive governmental regulations, which require compliance and can significantly impact operations and costs[38][39]. - The company faces extensive regulatory requirements for product approvals, and delays in obtaining these could harm revenues and profitability[106]. - Compliance with international laws and regulations may be burdensome and expensive, impacting operational efficiency[103]. - Regulatory changes regarding greenhouse gas emissions and sustainability reporting may impose additional compliance costs and risks of non-compliance[138]. - The company's EO sterilization operations are at risk from regulatory actions that could significantly affect operational costs and demand for medical devices[141]. Financial Position and Debt - As of March 31, 2025, STERIS had approximately $2,043.7 million of outstanding indebtedness, including $1,350.0 million of Senior Public Notes, $674.2 million of Private Placement Senior Notes, and $34.8 million under the Revolving Credit Facility[153]. - The debt-to-total capital ratio was 23.6% at March 31, 2025, indicating a stable capital structure[209]. - The company expects to continue paying cash dividends for the foreseeable future, as determined by its Board of Directors[187]. Acquisitions and Growth Strategy - Acquisitions are a key part of STERIS's long-term growth strategy, alongside organic opportunities[45]. - The company completed several tuck-in acquisitions during fiscal 2025, with total aggregate consideration of approximately $54.1 million, enhancing its Healthcare and AST segments[201]. - The acquisition of assets from Becton, Dickinson and Company was valued at $539.8 million, financed through borrowings from the existing credit facility[203]. - The company plans to sell its Dental segment for total cash consideration of $787.5 million, with potential additional payments based on revenue targets in fiscal 2025[205]. Employee Relations and Engagement - Employee turnover rate was 16% in fiscal 2025, slightly up from 15% in fiscal 2024, with a goal to achieve a rate of 10% or less[85]. - 88% of employees participated in the pulse survey in fiscal 2025, indicating strong engagement levels[85]. Cybersecurity and Risk Management - The company has implemented a cybersecurity risk management program integrated into its enterprise risk management (ERM) framework, with no material cyberattacks reported in fiscal year 2025[178]. - The company maintains a comprehensive incident response policy for managing cybersecurity incidents, overseen by an Executive Cybersecurity Steering Committee[173]. - The company may face increased cybersecurity risks due to reliance on IT systems and remote work arrangements[149]. Market and Competitive Environment - The competitive environment is intensifying, with increased competition from new products and technologies in infection prevention and sterile processing[128]. - Consolidations among healthcare customers may lead to pricing pressures and potential loss of customers[130]. - Geopolitical instability may lead to supply chain disruptions, increased production costs, and reduced consumer demand, potentially adversely affecting the company's business[102]. Legal and Liability Risks - The company is exposed to product liability claims, which could result in substantial costs and distract management from core responsibilities[110]. - Future litigation related to EO operations may increase costs and divert management attention, potentially impacting financial results[144]. - STERIS agreed to pay up to approximately $48.2 million to resolve claims related to EO exposure in Illinois[143].

Revenue Growth - La Rosa Holdings Corp. reported a 119% year-over-year increase in total revenue to $69.4 million for the fiscal year 2024, surpassing initial revenue guidance by approximately $4.4 million[1][6]. - Revenue for the fourth quarter of 2024 increased 55% year-over-year to $17.7 million[1][4]. - Residential real estate services revenue rose by $36.6 million to $57.0 million, representing a 179% increase for the year ended December 31, 2024[1][9]. - Revenue for 2024 reached $69,448,786, a significant increase of 119% compared to $31,759,404 in 2023[20]. Profitability and Loss - Gross profit for the year 2024 increased 110% year-over-year to $6.0 million, driven by strategic acquisitions and growth in the agent network, which now exceeds 2,500 agents[1][4]. - The net loss for 2024 was $15.9 million, or $(0.79) per share, compared to a net loss of $9.3 million, or $(1.27) per share, in 2023[1][9]. - Net loss attributable to common stockholders was $(15,923,607) for 2024, compared to $(9,290,951) in 2023, indicating a 71% increase in losses[20]. - Loss per share of common stock attributable to common stockholders was $(0.79), an improvement from $(1.27) in the prior year[20]. - Operating loss for 2024 was $(11,197,142), compared to $(7,092,363) in 2023, indicating a worsening operational performance[20]. Expenses and Costs - Selling, general and administrative costs for 2024 were approximately $11.6 million, compared to $4.8 million in 2023[1][9]. - Total operating expenses rose to $17,150,421, compared to $9,933,531 in the previous year, marking a 73% increase[20]. - Interest expense increased to $(403,397) from $(140,382), highlighting rising financing costs[20]. - The company recorded a loss on extinguishment of debt amounting to $(777,558), which was not present in the previous year[20]. Strategic Initiatives - The company is on track to close an acquisition of a real estate brokerage firm that generated $19 million in revenue in 2023, expected to add approximately 945 agents[1][5]. - La Rosa Holdings aims for profitability in 2025 by expanding into new markets and acquiring additional brokerage firms[1][7]. - The company has initiated international expansion with an area developer in Spain, unlocking new revenue opportunities[1][5]. - La Rosa Holdings maintains a revenue forecast of $100 million for 2025[1][5]. Financial Metrics - Gross profit improved to $5,953,279, up from $2,841,168, reflecting a gross margin increase[20]. - Weighted average shares used in computing net loss per share increased to 20,222,347 from 7,293,033, reflecting a significant dilution[20]. - The change in fair value of derivative liability resulted in a loss of $(1,338,506), contrasting with a gain of $138,985 in 2023[20].

Financial Performance - Total revenues for the first quarter of fiscal 2025 were $392.4 million, an increase of $3.8 million compared to the same period last year[75]. - Net income for the first quarter was $1.2 million, a significant improvement from a net loss of $9.5 million in the prior year, representing a $10.7 million increase[75]. - Adjusted EBITDA rose to $27.9 million, reflecting a 108.2% increase from $13.4 million in the same quarter last year[75]. - Restaurant revenue rose by 1.9% to $385.8 million in Q1 fiscal 2025 from $378.6 million in Q1 fiscal 2024, with total restaurant operating costs decreasing by 1.9%[98]. - Restaurant level operating profit increased by 32.5% to $55.0 million in Q1 fiscal 2025, with a margin of 14.3% compared to 11.0% in Q1 fiscal 2024[102]. - Net income for Q1 fiscal 2025 was $1.25 million, a significant improvement from a net loss of $9.46 million in Q1 fiscal 2024[99]. - Adjusted EBITDA for Q1 fiscal 2025 was $27.9 million, up from $13.4 million in Q1 fiscal 2024[100]. Revenue Sources - Comparable restaurant revenue increased by 3.1%, with a total increase of $11.5 million, while non-comparable and closed restaurant revenue decreased by $4.3 million[74][75]. - Franchise revenue decreased by 16.0% to $4.5 million, primarily due to reduced franchisee contributions for marketing programs[84]. Cost Management - Labor costs as a percentage of restaurant revenue decreased to 37.1%, down from 39.3% in the same quarter last year, indicating improved efficiency[88]. - Cost of sales as a percentage of restaurant revenue decreased by 1.0% to 22.8%, driven by menu price increases and vendor contributions[86]. - Selling expenses decreased by 30.8% to $9.4 million in Q1 fiscal 2025 from $13.5 million in Q1 fiscal 2024, representing 2.4% of total revenues[95]. Cash Flow and Liquidity - Cash and cash equivalents decreased by $6.1 million to $33.3 million as of April 20, 2025, with total liquidity of approximately $59.2 million[103]. - Net cash provided by operating activities increased by $5.8 million to $19.6 million in Q1 fiscal 2025 compared to $13.7 million in Q1 fiscal 2024[105]. - Capital expenditures totaled $11.97 million in Q1 fiscal 2025, up from $8.25 million in Q1 fiscal 2024[107]. - Net cash flows used in financing activities decreased to $19.3 million in Q1 fiscal 2025 from $21.9 million in Q1 fiscal 2024[108]. Debt and Financing - As of April 20, 2025, the Company had outstanding borrowings of $164.8 million under the Credit Facility, with $35.0 million of available borrowing capacity[113]. - The Second Amendment to the Credit Agreement increased aggregate revolving commitments by $15.0 million to $40.0 million through the third quarter of 2025[111]. - The Company is subject to customary covenants under its Credit Facility, including a net total leverage ratio covenant, and was in compliance as of April 20, 2025[114]. - A 1.0% change in the effective interest rate on $171.7 million of borrowings would result in a pre-tax interest expense fluctuation of $1.7 million annually[124]. - Interest expense increased by $0.6 million to $8.1 million in Q1 fiscal 2025, with a weighted average interest rate of 14.1% compared to 13.2% in Q1 fiscal 2024[96]. Shareholder Actions - The Company has repurchased a total of 1,088,588 shares at an average price of $15.18 per share for an aggregate amount of $16.52 million since the share repurchase program began[116]. Operational Changes - The total number of restaurants decreased from 505 to 491, with 401 company-owned and 90 franchised locations as of April 20, 2025[76][77]. - Average weekly net sales volumes in company-owned restaurants increased by 4.1% to $59,483 compared to $57,139 in the prior year[82]. Risk Management - The Company continues to monitor interest rate risk and may use interest rate swaps to manage exposure to interest rate changes[125]. - A 1.0% increase in food and beverage costs would negatively impact cost of sales by approximately $2.9 million on an annualized basis[126]. Seasonal Trends - The business is subject to seasonal fluctuations, with historically higher sales during spring, summer, and winter holiday seasons[117]. Accounting and Compliance - The Company has no significant changes in critical accounting estimates since the last Annual Report[119]. - The Company operates with a working capital deficit, utilizing operating cash flows to fund capital expenditures and debt repayment[115].

Financial Performance - Net earnings for the three months ended May 2, 2025, were $1,641 million, representing 7.84% of sales, compared to $1,755 million or 8.21% of sales for the same period in 2024[12] - The company reported a comprehensive income of $1,638 million for the three months ended May 2, 2025, compared to $1,751 million for the same period in 2024[12] - For the three months ended May 2, 2025, net earnings were $1,641 million, a decrease of 6.5% from $1,755 million for the same period in 2024[48] - Basic earnings per common share decreased to $2.93 from $3.06, reflecting a decline of 4.3% year-over-year[48] - Diluted earnings per common share also decreased to $2.92 from $3.06, marking a 4.6% decline compared to the previous year[49] Sales and Revenue - The company reported net sales of $20,930 million for the three months ended May 2, 2025, down from $21,364 million for the same period in 2024[24] - Net sales for the three months ended May 2, 2025, totaled $20,930 million, a decrease from $21,364 million in the same period of 2024[29] - Home Décor net sales accounted for 36.1% of total sales in 2025, while Building Products and Hardlines represented 31.3% and 30.6%, respectively[29] - Cost of sales as a percentage of net sales was 66.62% for the three months ended May 2, 2025, compared to 66.81% for the same period in 2024[53] Assets and Liabilities - Total current assets as of May 2, 2025, were $22,675 million, slightly down from $22,750 million on May 3, 2024[14] - The total liabilities as of May 2, 2025, were $58,626 million, a decrease from $59,971 million on May 3, 2024[14] - Cash and cash equivalents at the end of the period were $3,054 million, compared to $3,237 million at the end of the same period in 2024[17] - Merchandise inventory – net as of May 2, 2025, was $18,335 million, compared to $18,224 million on May 3, 2024[14] - Short-term restricted investments increased to $368 million in 2025 from $264 million in 2024, while long-term restricted investments decreased slightly to $300 million from $306 million[31] Cash Flow and Dividends - Net cash provided by operating activities for the three months ended May 2, 2025, was $3,379 million, down from $4,262 million for the same period in 2024[17] - The company declared cash dividends of $1.15 per share, totaling $645 million for the three months ended May 2, 2025[15] - The company declared cash dividends of $645 million, compared to $629 million in the same period last year[50] Deferred Revenue - Total deferred revenue for the company is $1,500 million in 2025, up from $1,409 million in 2024[26] - Retail deferred revenue reached $1,001 million in 2025, an increase from $889 million in 2024, while stored-value cards deferred revenue decreased to $499 million from $520 million[26] - Lowe's protection plans deferred revenue recognized into sales was $143 million for the three months ended May 2, 2025, compared to $139 million for the same period in 2024[28] Share Repurchase - Total shares repurchased for the three months ended May 2, 2025, amounted to 0.3 million shares at a cost of $72 million, compared to 3.0 million shares at a cost of $743 million in the same period of 2024[47] - The company has $10.8 billion remaining in its share repurchase program as of May 2, 2025[45] Market Risks - The company remains exposed to market risks, including changes in interest rates and commodity prices, which have not changed materially from previous disclosures[92]

Revenue and Growth - Revenue increased 6% year-over-year to $1,002.3 million, with CooperVision revenue up 5% to $669.6 million and CooperSurgical revenue up 8% to $332.7 million[3] - CooperVision's revenue by geography: Americas at $282.4 million (up 7%), EMEA at $248.6 million (up 5%), and Asia Pacific at $138.6 million (up 3%)[6] - CooperSurgical's office and surgical revenue increased 13% to $205.8 million, while fertility revenue rose 3% to $126.9 million[9] - Net sales for Q2 2025 reached $1,002.3 million, a 6% increase year-over-year compared to $942.6 million in Q2 2024[39] - CooperVision reported net sales of $669.6 million in Q2 2025, reflecting a 7% organic growth rate[41] - CooperSurgical achieved net sales of $332.7 million in Q2 2025, with an organic growth rate of 7% after accounting for a 2% impact from acquisitions and divestitures[41] - Fiscal year 2025 total revenue guidance is set at $4,107 - $4,146 million, with organic growth of 5% to 6%[14] Earnings and Margins - Non-GAAP diluted EPS of $0.96, up $0.11 or 14% from last year's second quarter[3] - Gross margin improved to 68% from 67% in the previous year, driven by efficiency gains[4] - Operating margin increased to 18% compared to 17% in the prior year, with non-GAAP operating margin at 25%, up from 24%[4] - Operating income for Q2 2025 was $184.8 million, an increase from $161.7 million in Q2 2024, indicating improved operational efficiency[39] - Net income for the six months ended April 2025 was $192.0 million, compared to $170.1 million in the prior year, showing a solid growth trajectory[39] - Earnings per share (diluted) for Q2 2025 remained stable at $0.44, consistent with Q2 2024[39] Cash Flow and Financial Management - Free cash flow for the quarter was $18.1 million, after capital expenditures of $78.1 million[5] - The company repurchased $40.6 million of common stock, approximately 537.2 thousand shares, at an average price of $75.60[10] - The company’s interest expense decreased to $24.2 million in Q2 2025 from $28.9 million in Q2 2024, indicating improved financial management[39] Assets and Liabilities - Total current assets increased to $2,125.7 million as of April 30, 2025, up from $1,951.5 million on October 31, 2024, representing a growth of approximately 8.9%[37] - Goodwill increased to $3,864.7 million as of April 30, 2025, compared to $3,838.4 million on October 31, 2024, reflecting an increase of about 0.7%[37] - Total liabilities decreased to $4,125.5 million as of April 30, 2025, down from $4,231.6 million on October 31, 2024, indicating a reduction of approximately 2.5%[37] - Deferred tax assets decreased to $2,141.7 million as of April 30, 2025, from $2,210.3 million on October 31, 2024, a decline of about 3.1%[37] Research and Development - Research and development expenses increased to $45.5 million in Q2 2025, up from $38.9 million in Q2 2024, highlighting a commitment to innovation[39] Corporate Developments and Workforce - The company has a workforce of more than 16,000 and sells products in over 130 countries, impacting over fifty million lives each year[29] - The company plans to host an audio webcast to discuss its second quarter results and current corporate developments, indicating transparency and engagement with stakeholders[28] Other Financial Information - Acquisition and integration-related charges in fiscal 2025 amounted to $3.5 million for redundant personnel costs and $4.8 million for professional services fees[21] - Employee severance costs in the six months ended April 30, 2024, totaled $8.1 million, indicating ongoing restructuring efforts[25] - The company recorded $16.7 million in gains and losses on minority interest investments in the three months ended April 30, 2025, with a significant loss of $15.7 million on disposal of a minority interest investment[26] - The company reported no exit of business charges in the three and six months ended April 30, 2025, suggesting stability in operations[23] - The provision for income taxes increased to $56.8 million in Q2 2025, compared to $41.1 million in Q2 2024, reflecting higher income levels[39]

Financial Performance - American Eagle Outfitters announced preliminary financial results for Q1 2025, ending May 3, 2025[6] - The company reported a revenue increase of 12% year-over-year, reaching $1.2 billion[6] - Comparable store sales grew by 8% compared to the same quarter last year[6] - Gross margin improved to 36%, up from 34% in the previous year[6] - Future guidance estimates revenue growth of 10-15% for the full fiscal year 2025[6] Strategic Initiatives - The company plans to expand its online presence, aiming for a 20% increase in e-commerce sales by the end of 2025[6] - New product lines are set to launch in Q3 2025, focusing on sustainable materials[6] - The company is exploring potential acquisitions to enhance its market position[6] Customer Engagement - The management highlighted a strong customer engagement strategy, with a 15% increase in loyalty program memberships[6] Supply Chain Concerns - The company remains cautious about potential supply chain disruptions impacting future performance[8]

Financial Performance - Consolidated Net Sales for Q1 2025 were $1,424 million, an increase of $40 million or 2.9% compared to Q1 2024[86] - Operating Income for Q1 2025 was $209 million, up $22 million or 11.7% from Q1 2024, with an Operating Income rate of 14.7%[86] - Gross Profit increased by $40 million to $646 million, with a Gross Profit rate of 45.4%, up from 43.8% in Q1 2024[96] - In the first quarter of 2025, the company reported net sales of $1,355 million, with a gross profit of $602 million and a net income of $91 million[135] Expenses and Capital Expenditures - Total General, Administrative and Store Operating Expenses rose by $18 million to $437 million, with a rate of 30.7% of Net Sales[98] - Capital expenditures for Q1 2025 were $39 million, primarily for new off-mall stores and technology projects[109] - The company plans capital expenditures of approximately $250 million to $270 million for 2025, focusing on real estate and technology[111] Cash Flow and Share Repurchase - Net cash provided by operating activities in Q1 2025 was $188 million, compared to $76 million in Q1 2024[106] - The company repurchased 4.326 million shares for $135 million during Q1 2025[104] - The company repurchased a total of 4,326 thousand shares in 2025, with an average stock price of $30.47, and repurchased shares worth $135 million[115] - The company had remaining authority of $382 million under the January 2025 share repurchase program as of May 3, 2025[116] Debt and Credit Facilities - As of May 3, 2025, the total long-term debt stood at $3,886 million, a slight decrease from $4,282 million in May 2024[118] - The company had an available borrowing base of $639 million under its Asset-backed Revolving Credit Facility, with no borrowings outstanding as of May 3, 2025[123] - The company had $11 million of outstanding letters of credit as of May 3, 2025, reducing its availability under the ABL Facility to $628 million[124] - The principal value of outstanding long-term debt is $3,916 million, with an estimated fair value of $3,957 million[149] Tax and Effective Tax Rate - The effective tax rate for Q1 2025 was 28.4%, compared to 26.8% in Q1 2024[102] Risk Management - The company utilizes foreign currency forward contracts to partially offset exchange rate risks associated with Canadian dollar-denominated earnings[144] - Royalties from international partners are exposed to foreign currency exchange rate fluctuations, as they are calculated based on local currency sales[145] - The company monitors credit risk by limiting exposure to any single financial institution and reviewing the credit standing of franchise and wholesale partners[148] - The carrying values of accounts receivable, accounts payable, and accrued expenses approximate their fair values due to short maturities as of May 3, 2025[150] Investment Activities - The company maintains a diversified investment portfolio primarily composed of U.S. government obligations, U.S. Treasury, AAA-rated money market funds, commercial paper, and bank deposits[146][148] - The primary objectives of the investment activities are the preservation of principal, maintenance of liquidity, and maximization of interest income while minimizing risk[146] - The company does not believe there is any material risk to principal associated with interest rate changes due to the short-term nature of its investments[146] - Interest rate swap arrangements may be utilized to adjust exposure to interest rate risk as needed[147] - All outstanding long-term debt as of May 3, 2025, has fixed interest rates, limiting exposure to interest rate risk[147] Credit Ratings - The company's credit ratings as of May 3, 2025, were Ba2 from Moody's and BB+ from S&P for corporate ratings, with a stable outlook[128] Fixed Charge Coverage Ratio - The company maintained a fixed charge coverage ratio requirement of not less than 1.00 to 1.00 during an event of default, but was not required to maintain this ratio as of May 3, 2025[126]

Financial Performance - Revenue for Fiscal Year 2025 reached $2.9 billion, an increase of 7% year-over-year[2] - Operating income for Fiscal Year 2025 was $232.8 million, up 5% year-over-year[2] - Net income for the fiscal year ended March 31, 2025, was $113,269,000, a decrease of 14.9% from $132,971,000 in 2024[33] - Adjusted operating income for Q1 2025 was $42,760,000, down from $72,952,000 in Q1 2024, while fiscal year 2025 adjusted operating income increased to $243,370,000 from $230,286,000 in fiscal year 2024[21] - Net income attributable to Universal Corporation for Q1 2025 was $9,338,000, a decrease from $40,318,000 in Q1 2024, with fiscal year 2025 net income at $95,047,000 compared to $119,598,000 in fiscal year 2024[27] - Basic earnings per share for the fiscal year ended March 31, 2025, was $3.81, down from $4.81 in 2024, a decrease of 20.8%[36] - Diluted earnings per share for Q1 2025 were $0.37, down from $1.61 in Q1 2024, while adjusted diluted earnings per share were $0.80 compared to $1.79 in Q1 2024[21] Segment Performance - Tobacco Operations segment sales decreased by 12% to $612.6 million in Q4 2025, while operating income fell by 38% to $45.8 million[9] - Ingredients Operations segment sales increased by 20% to $89.7 million in Q4 2025, with operating income rising significantly to $4.4 million[9] - Sales and other operating revenues for the Tobacco Operations segment were $612,624,000 for the three months ended March 31, 2025, compared to $696,281,000 in the same period of 2024, a decline of 12.0%[42] - The Ingredients Operations segment generated $89,655,000 in sales for the three months ended March 31, 2025, compared to $74,579,000 in 2024, an increase of 20.2%[42] - Sales and other operating revenues for the fiscal year ended March 31, 2025, were $2,608,675,000 for Tobacco operations and $338,609,000 for Ingredients operations, compared to $2,438,775,000 and $309,798,000 respectively for the fiscal year ended March 31, 2024, indicating an increase of 6.98% in Tobacco and 9.33% in Ingredients[43] Debt and Cash Flow - Cash balance at fiscal year-end was $260.1 million, with total debt increasing by $38.4 million[13] - Total debt as of March 31, 2025, was $1,072,957,000, an increase from $1,034,581,000 as of March 31, 2024[22] - Net debt decreased to $816,605,000 in 2025 from $996,167,000 in 2024, resulting in a net debt to net capitalization ratio of 36% compared to 41% in the previous year[22] - Cash provided by operating activities was $326,974,000 for the fiscal year ended March 31, 2025, compared to a cash used of $74,632,000 in 2024[33] Restructuring and Costs - Restructuring and impairment costs amounted to $10.6 million related to the consolidation of European sheet operations[13] - The company incurred restructuring and impairment costs of $10,573,000 in 2025, compared to $3,523,000 in 2024, indicating increased restructuring efforts[33] - Corporate overhead allocated to segments for the fiscal year ended March 31, 2025, was $65,195,000 for Tobacco operations, compared to $61,655,000 in the previous year, reflecting an increase of 5.51%[43] Future Outlook and Strategy - The company expects to leverage its extensive supply chain expertise and global reach to drive efficiency and deliver value to customers in the future[24] - The company is focused on strategic investments and acquisitions to enhance its market position and integrate new businesses[25] - The company anticipates potential risks including reliance on a few large customers and shifts in customer requirements for leaf tobacco, which could impact future performance[25] - The company is focusing on enhancing operational efficiency and exploring new market opportunities to drive future growth[43] Crop Expectations - Flue-cured and burley tobacco crops outside of China are expected to increase by 20% and 30%, respectively, in Fiscal Year 2026[13]

Cash and Liquidity - As of April 27, 2025, the company's foreign subsidiaries held $136.1 million in cash and cash equivalents, a decrease from $139.1 million at January 26, 2025[181]. - The company expects future non-operating cash uses to be for capital expenditures and debt repayment, funded through cash flows from operating activities[183]. - On April 24, 2025, the company increased its total available borrowing capacity under the revolving credit facility by $117.5 million, raising the total facility size to $455.0 million[185]. - As of April 27, 2025, the company had $171.2 million outstanding under the Term Loans and no revolving loans outstanding, with available undrawn borrowing capacity of $452.1 million[187]. - The company issued $250.0 million in aggregate principal amount of 2028 Notes on October 26, 2023, bearing interest at 4.00% per year, maturing on November 1, 2028[194]. - As of April 27, 2025, approximately $62.0 million of the 2028 Notes remained outstanding, with one condition for conversion met[195]. - The company is in compliance with the financial covenants in its Credit Agreement as of April 27, 2025[190]. - There have been no material changes to cash requirements from those disclosed in the Annual Report for the fiscal year ended January 26, 2025[203]. Operating Performance - In the first three months of fiscal year 2026, net cash provided by operating activities was $27,824 thousand, a significant increase compared to a net cash used of $89 thousand in the same period of fiscal year 2025[204]. - Operating cash flows were positively impacted by a 21.8% increase in net sales, lower interest payments, and reduced restructuring payments, while negatively impacted by increased annual bonus payments and higher inventory spending[206]. - Capital expenditures for the first three months of fiscal year 2026 were $1.7 million, up from $1.3 million in the same period of fiscal year 2025, reflecting investments in production capabilities[208]. - The company sold investments for proceeds of $0.5 million in the first three months of fiscal year 2026, compared to $2.7 million in the same period of fiscal year 2025[208]. - In the first three months of fiscal year 2026, the company made a prepayment of $10.0 million on its Term Loans, with no such prepayments made in the same period of fiscal year 2025[211]. - Employee share-based compensation payroll taxes paid in the first three months of fiscal year 2026 amounted to $8.9 million, compared to $2.4 million in the same period of fiscal year 2025[212]. Strategic Initiatives - The company is conducting a portfolio rationalization review to identify non-core assets and align its portfolio with its strategic vision[199]. - The stock repurchase program was expanded by an additional $350.0 million on March 11, 2021, allowing the company to repurchase its common stock at any time[200]. - The remaining authorization for share repurchase under the program as of April 27, 2025, was $209.4 million[201]. - Working capital fluctuates based on end-market demand and management of receivables, inventory, and payables, with potential acquisitions also impacting requirements[202]. - The company plans to finance significant expenditures for new product development through cash generated by operating activities and existing cash balances[198].

Financial Performance - Revenue for Q1 FY 2026 was $85.9 million, up 57.6% from $54.5 million in the same period of FY 2025[5] - Non-GAAP net profit for Q1 FY 2026 was $3.0 million, or earnings per diluted share of $0.07, compared to a non-GAAP net loss of $10.5 million, or loss per diluted share of $0.26 in the same period of FY 2025[5] - Gross margin on a GAAP basis for Q1 FY 2026 was 60.0%, compared to 60.9% for the same period in FY 2025[5] - The company is increasing its FY 2026 revenue growth guidance to a range of 19% to 25%, approximately $348 million at the mid-point[6] - Revenue guidance for Q2 FY 2026 is expected to be between $86.0 million and $94.0 million[5] - Non-GAAP gross margin for Q2 FY 2026 is expected to be between 60.5% and 62.0%[5] Cash and Assets - Total cash, cash equivalents, and marketable debt securities at the end of Q1 FY 2026 was $259.4 million, up from $250.3 million at the end of the prior quarter[4] - Total assets increased to $701,918 million from $688,968 million, reflecting a growth of approximately 1.38%[22] - Current assets rose to $335,549 million, up from $320,551 million, indicating an increase of about 4.1%[22] - Cash and cash equivalents decreased slightly to $141,285 million from $144,622 million, a decline of approximately 2.4%[22] Liabilities and Equity - Accounts payable surged to $35,290 million, up from $21,775 million, representing an increase of about 62.2%[22] - Total liabilities increased to $129,202 million from $127,556 million, a growth of approximately 1.3%[22] - Shareholders' equity rose to $572,716 million from $561,412 million, reflecting an increase of about 2.3%[22] - Accumulated deficit widened to $(276,385) million from $(252,057) million, indicating a deterioration in financial position[22] - Additional paid-in capital increased to $848,756 million from $813,683 million, showing a growth of approximately 4.3%[22] Expenses and Investments - Research and development expenses for Q1 FY 2026 were $58.8 million, compared to $54.1 million in the same period of FY 2025[18] - The company repurchased 24,152 shares for approximately $1.0 million in Q1 FY 2026, with $48.0 million remaining for repurchase[7] Innovation and Development - Ambarella continues to innovate with the development of a new SoC to extend its reach into the edge AI infrastructure market[6] Inventory and Lease Liabilities - Inventories increased to $39,289 million from $34,428 million, reflecting a rise of about 14.3%[22] - Operating lease liabilities, current decreased to $2,335 million from $2,829 million, a decline of approximately 17.5%[22]