Sales Performance - Comparable sales in the U.S. increased by 4.5% and 4.0% for the three and nine months ended October 31, 2025, respectively, compared to the same periods in the previous fiscal year[75] - Walmart U.S. segment had comparable sales growth of 4.8% and 4.2% for the three and nine months ended October 31, 2025, driven by growth in average ticket and transactions[75] - Net sales for the three months ended October 31, 2025, were $177.769 billion, representing a 5.8% increase from $168.003 billion in the same period of 2024[78] - Net sales for the Walmart U.S. segment increased by $5.8 billion or 5.1% for the three months ended October 31, 2025, compared to the same period in 2024[98] - Walmart International segment net sales increased by $3.3 billion or 10.8% for the three months ended October 31, 2025, and $4.8 billion or 5.4% for the nine months ended October 31, 2025, compared to the same periods in the previous fiscal year[103] - Sam's Club U.S. segment net sales increased by $0.7 billion or 3.1% for the three months ended October 31, 2025, driven by comparable sales growth of 2.8%[108] Profitability - Operating income for the three months ended October 31, 2025, was $6.696 billion, a slight decrease of 0.2% compared to $6.708 billion in the same period of 2024[78] - Gross profit as a percentage of net sales increased by 2 basis points for the three months ended October 31, 2025, compared to the same period in the previous fiscal year[78] - Consolidated net income for the three months ended October 31, 2025, was $6.1 billion, an increase of 29.1% from $4.7 billion in the same period of 2024[97] - Gross profit for the nine months ended October 31, 2025, was $125.7 billion, an increase of 4.9% from $120.1 billion in 2024[92] - Operating income for the nine months ended October 31, 2025, was $21.1 billion, a decrease of 1.7% from $21.5 billion in 2024[92] Expenses and Costs - Operating expenses as a percentage of net sales increased by 28 basis points for the three months ended October 31, 2025, primarily due to a $0.7 billion charge related to share-based compensation modifications[79] - The effective income tax rate for the three months ended October 31, 2025, was 25.6%, up from 22.7% in the same period of the previous year[96] - Operating expenses as a percentage of net sales increased by 28 basis points for the three months ended October 31, 2025, primarily due to a charge related to share-based compensation[94] - Operating income for the Walmart International segment decreased by $0.5 billion for the three months ended October 31, 2025, resulting in an operating income margin of 2.1%[106] - Operating expenses as a percentage of net sales for Sam's Club U.S. increased by 29 basis points for the three months ended October 31, 2025, mainly due to associate wage investments[111] Cash Flow and Capital Expenditures - Free cash flow for the nine months ended October 31, 2025, was $8.8 billion, representing an increase of 41.8% compared to $6.2 billion in the same period of the previous year[91] - Net cash provided by operating activities increased by $4.5 billion to $27.5 billion for the nine months ended October 31, 2025, compared to $22.9 billion in 2024[91] - Total capital expenditures for the nine months ended October 31, 2025, were $18.6 billion, an increase of 11.1% from $16.7 billion in 2024[86] - Net cash provided by operating activities increased by $4.5 billion to $27.452 billion for the nine months ended October 31, 2025, compared to the previous fiscal year[114] - Net cash used in investing activities increased by $6.4 billion to $(19.030) billion for the nine months ended October 31, 2025, primarily due to changes in strategic investments[117] Shareholder Returns - The company approved a fiscal 2026 annual dividend of $0.94 per share, a 13% increase over the previous year's dividend[121] - The company repurchased 75.3 million shares during the nine months ended October 31, 2025, compared to 45.9 million shares in the same period of 2024, representing a significant increase[123] - The average price paid per share for repurchases in 2025 was $93.04, up from $66.37 in 2024, indicating a higher investment per share[123] - Total amount paid for share repurchases reached $7.0 billion in 2025, an increase of $4.0 billion compared to $3.0 billion in 2024[123] - The company expects to fund the majority of its ongoing share repurchase program through free cash flow[123] Financial Outlook and Risks - The company expects continued uncertainty in business and the global economy due to various macroeconomic factors, including inflation and supply chain pressures[70] - The One Big Beautiful Bill Act introduced corporate tax changes, including 100% bonus depreciation on qualified property, which is expected to decrease cash taxes paid in the current fiscal year[70] - The company maintains strong credit ratings, with Standard & Poor's rating at A-1+ for commercial paper and AA for long-term debt as of October 31, 2025[126] - The company anticipates that cash flows from operations will be sufficient to meet its cash requirements, including capital expenditures and share repurchases[125] - There were no material changes to the company's market risks as of October 31, 2025, compared to the previous fiscal year[128] - The company is subject to potential credit rating downgrades, which could affect future borrowing costs and access to capital markets[126] - Material cash requirements include inventory purchases, employee-related costs, and interest payments, expected to be satisfied by cash from operations[124] Returns on Investment - Return on Assets (ROA) improved to 8.4% for the trailing 12 months ended October 31, 2025, up from 7.8% in 2024[85] - Return on Investment (ROI) decreased to 14.8% for the trailing 12 months ended October 31, 2025, down from 15.1% in 2024[85] Membership and Other Income - Membership and other income increased by 9.0% for the three months ended October 31, 2025, reaching $1.7 billion, up from $1.6 billion in 2024[92] - Membership and other income for Sam's Club U.S. increased by 13.1% for the three months ended October 31, 2025, primarily due to growth in the membership base[109] Gross Profit Analysis - Gross profit for the Walmart International segment was $7.002 billion for the three months ended October 31, 2025, with a gross profit rate of 20.9%, a decrease of 68 basis points compared to the previous year[104] - Gross profit rate for Sam's Club U.S. increased by 10 basis points for the three months ended October 31, 2025, attributed to product mix changes and operational efficiencies[110]

Financial Performance - Net sales decreased by $45.7 million, or 15.6%, to $246.9 million in the three months ended November 1, 2025, compared to $292.6 million in the same period of 2024 [122]. - Net sales decreased by $63.7 million, or 11.6%, to $487.4 million in the six months ended November 1, 2025, compared to $551.1 million in the same period of 2024 [123]. - Net loss for the three months ended November 1, 2025, was $9.9 million, compared to a net loss of $1.6 million for the same period in 2024, indicating a significant increase in losses [135]. - The company experienced a net loss of $20.2 million for the six months ended November 1, 2025, compared to a net loss of $19.9 million for the same period in 2024 [169]. Cost and Expenses - Cost of products sold decreased by $35.5 million, or 15.1%, to $199.2 million in the three months ended November 1, 2025, representing 80.7% of net sales [124]. - Selling and administrative expenses decreased by $3.6 million, or 8.5%, to $39.0 million in the three months ended November 1, 2025 [127]. - Interest expense, net was $5.7 million in the three months ended November 1, 2025, compared to $6.2 million in the same period of 2024 [130]. - Income tax expense was $5.7 million in the three months ended November 1, 2025, compared to $3.2 million in the same period of 2024 [133]. Segment Performance - Automotive segment net sales decreased by $35.0 million, or 24.1%, to $110.5 million in the three months ended November 1, 2025, compared to $145.5 million in the same period in 2024 [138]. - Gross profit for the automotive segment fell by $12.0 million, or 84.5%, to $2.2 million in the three months ended November 1, 2025, with gross profit margins decreasing to 2.0% from 9.8% in the prior year [142]. - Industrial segment net sales increased by $7.5 million, or 3.1%, to $250.4 million in the six months ended November 1, 2025, compared to $242.9 million in the same period in 2024 [148]. - Industrial segment gross profit rose by $11.3 million, or 16.0%, to $82.1 million in the six months ended November 1, 2025, with gross profit margins increasing to 32.8% from 29.1% in the prior year [150]. - Interface segment net sales decreased by $6.2 million, or 39.5%, to $9.5 million in the three months ended November 1, 2025, compared to $15.7 million in the same period in 2024 [154]. - Interface segment gross profit decreased by $2.4 million, or 46.2%, to $2.8 million in the three months ended November 1, 2025, with gross profit margins decreasing to 29.5% from 33.1% in the prior year [155]. Liquidity and Capital Structure - As of November 1, 2025, the company had $118.5 million in cash and cash equivalents, with $61.5 million held in subsidiaries outside the U.S. [160]. - The company has a share buyback authorization of up to $200.0 million, which commenced on June 17, 2024, with no shares purchased as of November 1, 2025 [161]. - The outstanding balance under the revolving credit facility was $294.5 million in euro-denominated borrowings and $40.0 million in U.S. denominated borrowings as of November 1, 2025 [167]. - Net cash provided by operating activities was $17.7 million for the six months ended November 1, 2025, compared to a net cash used of $37.1 million for the same period in 2024 [170]. - Capital expenditures were $11.3 million for the six months ended November 1, 2025, down from $24.0 million in the same period in 2024 [171]. - The company paid cash dividends of $4.7 million in the six months ended November 1, 2025, compared to $10.0 million in the same period in 2024 [173]. Compliance and Financial Agreements - The company was not in compliance with a covenant restricting certain restricted payments for the quarter ended August 2, 2025, leading to a waiver agreement with Bank of America [164]. - The Amended Credit Agreement provides for a secured multicurrency revolving credit facility of $400 million, maturing on October 31, 2027 [166]. - The company anticipates compliance with financial covenants in the Amended Credit Agreement based on current projections, but future compliance is uncertain [168]. Market Challenges - The company continues to face supply chain challenges, particularly in procuring automotive-grade semiconductors, which may impact financial results [118]. - The adoption of electric vehicles (EVs) has been slower than anticipated, potentially affecting the company's financial condition [117].

NEWS RELEASE Five Below, Inc. Announces Third Quarter Fiscal 2025 Financial Results Q3 Net Sales Increase of 23.1% to $1.0 Billion; Comparable Sales Increase of 14.3% Q3 GAAP Diluted EPS of $0.66, Q3 Adjusted Diluted EPS of $0.68 Increases Full Year 2025 Sales and EPS Outlook PHILADELPHIA, PA – (December 3, 2025) – Five Below, Inc. (NASDAQ: FIVE) today announced financial results for the third quarter and year to date period ended November 1, 2025. For the third quarter ended November 1, 2025: A reconciliat ...

Financial Performance - Average assets under management for fiscal year 2025 were $4.5 billion, with total assets under management at $4.2 billion[14]. - Total revenue increased by 19.9% from $29.6 million in fiscal year 2024 to $35.5 million in fiscal year 2025, with investment advisory fees increasing by 20.5% and shareholder service fees increasing by 11.4%[192]. - Net income for fiscal year 2025 was $9.96 million, representing 28.0% of total revenue, compared to $7.1 million, or 23.9% of total revenue, in fiscal year 2024[191]. - Net income increased by 40.3%, from $7.1 million to $10.0 million, primarily due to increased average assets under management[210]. - Income tax expense increased by 40.4%, from $2.6 million to $3.7 million, due to higher net operating income[209]. - Interest income decreased from $3.1 million to $2.8 million, attributed to decreased interest rates[207]. - Interest expense increased by 0.8% from $2.28 million to $2.29 million, due to the amortization of issuance costs related to the 2026 Notes[208]. Investment Advisory Services - The company’s revenue is primarily derived from investment advisory services, calculated as a percentage of the average daily net asset values of the Hennessy Funds[12]. - Investment advisory fees for fiscal year 2025 increased to $33,174,000 from $27,524,000 in 2024, representing a growth of 20.1%[56]. - As of the end of fiscal year 2025, the investment advisory fees for various Hennessy Funds range from 0.40% to 1.25% of the fund's average daily net asset value[60]. - The sub-advisory fees for the Hennessy Focus Fund and Hennessy Equity and Income Fund are 0.29% and 0.27% respectively, with additional fees for equity allocations[63]. - The 12b-1 fee for each Hennessy Mutual Fund is set at 0.15% of the average daily net assets of the fund's Investor Class shares[71]. - The shareholder service fee received from each Hennessy Mutual Fund is 0.10% of the average daily net assets of the fund's Investor Class shares[68]. Fund Performance - Hennessy Cornerstone Large Growth Fund's Institutional Class Share returned 1.90% over the past year, underperforming the Russell 1000® Index which returned 17.75%[37]. - Hennessy Cornerstone Value Fund's Institutional Class Share achieved a one-year return of 10.80%, outperforming the Russell 1000® Value Index which returned 9.44%[37]. - Hennessy Total Return Fund's Investor Class Share reported a one-year return of 4.60%, while the 75/25 Blended DJIA/Treasury Index returned 9.87%[37]. - Hennessy Equity and Income Fund's Institutional Class Share returned 6.76% over the past year, significantly lower than the S&P 500® Index's return of 17.60%[38]. - Hennessy Midstream Fund's Institutional Class Share achieved a one-year return of 10.69%, while the Alerian US Midstream Energy Index returned 19.31%[38]. - Hennessy Japan Small Cap Fund's Institutional Class Share outperformed the Russell/Nomura Small Cap™ Index with a one-year return of 28.34% compared to 19.90%[38]. - Hennessy Japan Fund's Institutional Class Share returned 8.18% over the past year, while the Tokyo Stock Price Index (TOPIX) returned 17.73%[38]. - Hennessy Gas Utility Fund's Institutional Class Share achieved a one-year return of 17.70%, slightly outperforming the AGA Stock Index which returned 17.06%[38]. - Hennessy Energy Transition Fund's Institutional Class Share reported a one-year return of 11.77%, outperforming the S&P 500® Energy Index which returned 4.43%[38]. - Hennessy Balanced Fund's Investor Class Share returned 3.17% over the past year, underperforming the 50/50 Blended DJIA/Treasury Index which returned 7.98%[38]. - Institutional Class Share of Hennessy Large Cap Financial Fund achieved a one-year return of 37.10%[39]. - Hennessy Sustainable ETF had a one-year net asset value return of 5.40%[39]. - Hennessy Technology Fund's one-year return was 21.56%, outperforming the NASDAQ Composite Index's 25.42%[39]. - All 17 Hennessy Funds posted positive returns for the one-year and three-year periods ended September 30, 2025[178]. Asset Management and Strategy - The company has a business strategy focused on organic growth through marketing and sales, as well as growth through strategic purchases of management-related assets[14]. - The company completed the purchase of assets related to the management of a mutual fund previously managed by Community Capital Management, LLC, totaling approximately $12 million[23]. - The company reorganized assets of 10 mutual funds previously managed by FBR Fund Advisers, totaling approximately $2.2 billion[20]. - The Hennessy Funds family includes 16 mutual funds and one ETF, categorized into Domestic Equity, Multi-Asset, and Sector and Specialty products[27]. - The company has completed 12 asset purchases related to fund management, positioning itself to capitalize on opportunities in a competitive market[87]. - The company aims to expand its base of financial advisors and investment professionals to increase assets under management and revenues[85]. - The company develops new investment strategies by identifying investor needs and reviewing asset allocation tables[52]. - The company has consistently pursued a growth strategy focused on organic growth and strategic purchases of management-related assets since launching its first mutual fund in 1996[76]. - The business strategy focuses on identifying and integrating future acquisitions and organic growth through retention of fund assets and generating inflows[172]. Regulatory and Compliance - The Hennessy Funds are subject to extensive federal and state regulations, ensuring compliance with investor protection laws[92]. - The investment advisory agreements must be renewed annually by the Funds' Board of Trustees and require a majority vote of disinterested trustees[61]. - The sub-advisory agreements are subject to the same renewal and termination provisions as the investment advisory agreements, ensuring oversight and compliance[65]. - The company may face challenges in developing or acquiring new products, which could harm its reputation and operational efficiency, potentially reducing assets under management and revenues[111]. - Regulatory scrutiny and potential legal liabilities could result in significant financial penalties and increased operational costs[116][119]. Market and Competitive Environment - The investment advisory industry is highly competitive, with numerous global and U.S. investment managers posing challenges to the Hennessy Funds[90]. - Market consolidation and a shift towards lower-fee, passive products may negatively impact Hennessy Funds' profitability and competitive position[112]. - There is ongoing pressure to lower investment advisory fees, which could reduce profit margins and adversely affect results of operations[113]. - The company faces risks related to changes in distribution channels, which could adversely affect net revenues and growth due to increased competition and potential termination of relationships with financial institutions[132]. - A significant reduction in the number of investment funds offered by financial institutions could negatively impact assets under management, revenues, and net income[133]. Operational Risks - Cybersecurity incidents could result in financial losses, business disruptions, and reputational damage, adversely affecting the company's financial condition[144]. - The use of artificial intelligence technologies presents operational and regulatory risks that could disrupt business processes and lead to competitive disadvantages[123][124]. - Failure to establish adequate controls and risk management policies could harm the company's reputation and ability to attract and retain investors[126]. - The company relies on key personnel for business management, and the loss of any key individual could materially affect operations and financial condition[135]. - The company may incur additional debt, which could limit its flexibility in financing and increase vulnerability to adverse economic conditions[154]. Shareholder and Stock Information - The company has consistently paid dividends since 2005, although the declaration and amount are subject to the discretion of its Board of Directors[157]. - The company’s common stock trades on The Nasdaq Global Market under the symbol "HNNA" and intends to continue paying regular cash dividends[166]. - As of the end of fiscal year 2025, the company had 116 holders of record of its common stock, with a total of 2,150 shareholders including brokerage accounts[167]. - The company repurchased 41,442 shares at an average price of $11.08 per share during the three months ended September 30, 2025, with 1,096,368 shares remaining available for repurchase under its stock buyback program[168].

Financial Performance - Total revenue for fiscal year 2025 was $35.5 million, representing a 20% increase compared to fiscal year 2024[12] - Net income reached $10.0 million, marking a 40% increase from the previous year[12] - Fully diluted earnings per share were $1.27, an increase of 38% year-over-year[12] Assets Management - Average assets under management were approximately $4.5 billion, reflecting a 22% increase[12] - Total assets under management at the end of the fiscal year were $4.2 billion, a decrease of 9% from the prior year[12] - The company is entering fiscal year 2026 with nearly $4.3 billion in assets under management and over $72 million in cash[5] Cash Position - Cash and cash equivalents, net of gross debt, amounted to $32.2 million, an increase of 36%[12] Fund Performance - Hennessy Advisors' funds showed positive returns across all 17 funds for the one- and three-year periods ended September 30, 2025[4] Strategic Plans - The company plans to maintain its quarterly dividend and pursue growth opportunities through acquisitions[6] Economic Outlook - The Federal Reserve's expected easing of monetary policy is anticipated to support lower interest rates, benefiting investors and businesses[3]

Financial Performance - Net sales for Q2 fiscal 2026 were $246.9 million, a decrease of 15.6% year-over-year from $292.6 million in Q2 fiscal 2025[3] - Income from operations was $2.9 million, down from $9.4 million in the same quarter of fiscal 2025, representing 1.2% of net sales compared to 3.2%[4] - Net loss was $9.9 million or $0.28 per diluted share, compared to a loss of $1.6 million or $0.05 per diluted share in Q2 fiscal 2025[5] - Adjusted EBITDA was $17.6 million, down from $26.7 million in Q2 fiscal 2025, with an adjusted EBITDA margin of 7.1%[6] - Net loss for the six months ended November 1, 2025, was $20.2 million, compared to a net loss of $19.9 million for the same period in the previous year[26] - Adjusted EBITDA for the six months ended November 1, 2025, was $33.3 million, down from $36.5 million in the prior year, representing a decrease of 8.8%[28] - The net loss for the three months ended November 1, 2025, was $9.9 million, resulting in a diluted loss per share of $0.28, compared to a net loss of $1.6 million and a diluted loss per share of $0.05 in the prior year[31] - For the six months ended November 1, 2025, the company reported a net loss of $20.2 million, with a diluted loss per share of $0.57, compared to a net loss of $19.9 million and a diluted loss per share of $0.56 in the same period last year[31] Cash Flow and Debt - Free cash flow for the first half of fiscal 2026 was positive $6.4 million, compared to negative $58.4 million in the same period of fiscal 2025[8] - Free cash flow for the six months ended November 1, 2025, was $6.4 million, compared to a negative free cash flow of $61.1 million for the same period last year[29] - Debt increased to $332.5 million at the end of the quarter, up from $317.6 million at the end of fiscal 2025[7] - Long-term debt increased from $317.4 million to $332.3 million, an increase of 4.5%[24] Segment Performance - The Automotive segment reported a 24.1% decrease in net sales to $110.5 million, primarily due to the roll-off of legacy programs[10] - The Industrial segment saw a 3.4% decrease in net sales to $126.9 million, impacted by lower sales volumes for certain products[10] Operational Challenges and Restructuring - The company is focused on strategic operational enhancements despite a projected $100 million decline in annual net sales due to evolving EV market demand[2] - Transformation costs for the three months ended November 1, 2025, were $4.8 million, while for the six months, they totaled $7.0 million, indicating significant ongoing restructuring efforts[31] - The company continues to face challenges in its operational performance, as indicated by the significant losses and restructuring costs reported[31] Asset and Equity Changes - Total assets decreased from $1,305.8 million to $1,287.4 million, a decline of 1.6%[24] - Total shareholders' equity decreased from $693.3 million to $679.3 million, a decline of 2.0%[24] - Total current liabilities decreased from $233.2 million to $217.6 million, a reduction of 6.5%[24] Other Financial Metrics - Cash and cash equivalents increased to $118.5 million from $103.6 million, reflecting a rise of 14.9%[26] - Inventory obsolescence expense decreased from $5.6 million to $3.4 million, a decline of 39.3%[26] - The company reported a net cash provided by operating activities of $17.7 million, compared to a net cash used of $37.1 million in the prior year[26] - The company recognized a valuation allowance on deferred tax assets of $2.3 million for the three months ended November 1, 2025, compared to $3.2 million in the prior year[31] - The company incurred restructuring costs and asset impairment charges of $1.1 million for the three months ended November 1, 2025, compared to $0.1 million in the same period last year[31] - The net gain on the sale of non-core assets was $0 for the three months ended November 1, 2025, compared to a loss of $0.3 million in the prior year[31] - The company reported a partial write-off of unamortized debt issuance costs of $0.6 million for the six months ended November 1, 2025[31] - Adjusted non-U.S. GAAP income for the three months ended November 1, 2025, was $4.0 million, with a diluted loss per share of $0.19, compared to $14.3 million and a diluted income per share of $0.14 in the previous year[31]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 1, 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 1-11084 KOHL'S CORPORATION (Exact name of registrant as specified in its charter) Wisconsin 39-1630919 (State or other jur ...

Financial Performance - Total revenue for Q1 FY 2026 was $332.6 million, a 27% increase year-over-year[6] - Subscription and support revenue reached $222.2 million, up 31% compared to the same quarter in FY 2025[6] - Annual recurring revenue (ARR) grew to $1,063 million, reflecting a year-over-year increase of 22%[6] - GAAP net income for Q1 FY 2026 was $31.3 million, compared to $9.1 million in the same quarter of FY 2025[6] - Non-GAAP net income for Q1 FY 2026 was $57.0 million, an increase from $36.7 million in Q1 FY 2025[6] - Total revenue for the three months ended October 31, 2025, was $332,639,000, representing a 26.5% increase from $262,901,000 in the same period of 2024[22] - Net income for the three months ended October 31, 2025, was $31,308,000, compared to $9,139,000 in the same period of 2024, marking a significant increase[22] - Subscription and support revenue increased to $222,203,000, up 30.8% from $169,742,000 year-over-year[22] - The company reported a gross profit of $209,522,000, up from $158,392,000, representing a 32.3% increase year-over-year[26] Guidance and Outlook - Guidewire raised its fiscal year 2026 outlook based on strong sales momentum and performance exceeding expectations[2] - The company expects ending ARR for Q2 FY 2026 to be between $1,107 million and $1,113 million[9] - Total revenue guidance for FY 2026 is projected between $1,403 million and $1,419 million[9] - GAAP income from operations outlook for Fiscal Year 2026 is projected to be $19 million for Q2, increasing to $88 million by the end of the fiscal year[29] - Non-GAAP income from operations for Fiscal Year 2026 is expected to rise from $68 million in Q2 to $282 million by the end of the fiscal year[29] Cash and Assets - As of October 31, 2025, Guidewire had $1,409.3 million in cash, cash equivalents, and investments[5] - Total current assets decreased to $1,357,024,000 from $1,507,415,000, a decline of 9.9%[20] - Cash and cash equivalents at the end of the period were $493,230,000, down from $824,754,000, a decrease of 40.2%[25] Expenses and Costs - Research and development expenses increased to $78,317,000, up from $68,880,000, reflecting a growth of 13.3%[22] - Stock-based compensation expense totaled $43,316,000, compared to $38,060,000 in the same period of 2024, an increase of 13.4%[23] - Stock-based compensation for Q2 of Fiscal Year 2026 is estimated at $47 million, totaling $185 million for the fiscal year[29] - Amortization of intangibles for Q2 of Fiscal Year 2026 is projected at $2 million, with a total of $9 million for the fiscal year[29] Share and Cash Flow - The number of diluted shares used in computing non-GAAP net income per share increased from 85,960,868 in Q3 2024 to 86,451,737 in Q3 2025[27] - Free cash flow for Q3 2025 was $(77,364) thousand, a decline from $(67,381) thousand in Q3 2024[27] - Net cash used in operating activities for Q3 2025 was $(67,398) thousand, compared to $(62,305) thousand in Q3 2024[27] - Capitalized software development costs for Q3 2025 were $(5,088) thousand, up from $(4,233) thousand in Q3 2024[27] Product Development - Guidewire launched new pricing and underwriting products at its annual customer conference, enhancing its cloud platform offerings[2]

Financial Performance - Total revenue for Q2 fiscal 2026 was $75.1 million, a 7% increase quarter-over-quarter[5] - Subscription revenue reached $70.2 million, accounting for 93% of total revenue[5] - Total revenue for the three months ended October 31, 2025, was $75,147, a decrease of 20.3% compared to $94,338 for the same period in 2024[25] - Subscription revenue for the same period was $70,242, down 13.5% from $81,162 in 2024[25] - The company reported a gross profit of $30,380 for the three months ended October 31, 2025, down from $57,840 in 2024, reflecting a gross margin of 40%[31] Bookings and Agreements - Total bookings increased by 49% quarter-over-quarter, with 17 agreements over $1 million and six over $5 million[5] - C3 AI's Federal business bookings grew 89% year-over-year, representing 45% of total bookings[10] - C3 AI and Microsoft closed over 100 customer agreements generating over $130 million in bookings[10] Guidance and Projections - Guidance for Q3 fiscal 2026 projects total revenue between $72.0 million and $80.0 million[12] Expenses and Losses - GAAP net loss per share was $(0.75), while non-GAAP net loss per share was $(0.25)[5] - Net loss for the three months ended October 31, 2025, was $104,668, compared to a net loss of $65,972 in 2024, representing a 58.5% increase in losses[25] - Total operating expenses increased to $142,493 for the three months ended October 31, 2025, from $133,128 in 2024, marking a rise of 7.5%[25] - Stock-based compensation expense for the six months ended October 31, 2025, was $133,628, compared to $111,721 in 2024, an increase of 19.6%[29] - Total stock-based compensation expense for Q3 2025 was $68,853 million, up from $57,038 million in Q3 2024, representing a 20% increase[32] Cash and Assets - Cash, cash equivalents, and marketable securities totaled $675.0 million[5] - Cash and cash equivalents decreased to $103,205 as of October 31, 2025, down from $164,358 as of April 30, 2025[27] - Total assets decreased to $961,298 as of October 31, 2025, from $1,025,882 as of April 30, 2025[27] Cash Flow - The company had a net cash used in operating activities of $80,031 for the six months ended October 31, 2025, compared to $30,651 in 2024, indicating a significant increase in cash outflow[29] - Free cash flow for Q3 2025 was $(46,882) million, compared to $(39,508) million in Q3 2024, indicating a decline of 8%[33] - Net cash used in operating activities for Q3 2025 was $(46,496) million, an increase from $(38,693) million in Q3 2024, reflecting a 20% rise in cash outflow[33] - Net cash provided by investing activities for Q3 2025 was $62,088 million, significantly higher than $22,635 million in Q3 2024[33] - Net cash provided by financing activities for Q3 2025 was $6,672 million, compared to $3,512 million in Q3 2024, showing an increase of 90%[33] Operational Developments - C3 AI launched C3 AI Agentic Process Automation, enhancing enterprise operations through autonomous AI agents[10] Expense Breakdown - Sales and marketing expenses for Q3 2025 reached $25,687 million, up from $20,802 million in Q3 2024, a growth of 23%[32] - Research and development expenses for Q3 2025 were $20,084 million, compared to $17,999 million in Q3 2024, reflecting a 12% increase[32] - General and administrative expenses for Q3 2025 totaled $12,683 million, up from $9,926 million in Q3 2024, indicating a 28% rise[32] - Total employer payroll tax expense related to employee stock-based compensation for Q3 2025 was $1,036 million, slightly down from $1,090 million in Q3 2024[32] - Cost of subscription for stock-based compensation in Q3 2025 was $9,960 million, compared to $7,827 million in Q3 2024, marking a 27% increase[32]

Financial Performance - Third quarter net sales decreased by 10.8% to $235.2 million compared to $263.8 million in the same quarter last year[8] - Comparable sales fell by 8.3% in the third quarter[8] - Net loss for the third quarter was $6.4 million, or ($0.06) per share, compared to a net loss of $1.2 million, or ($0.01) per share, in the prior year[8] - Adjusted EBITDA was $9.8 million, representing 4.2% of net sales, down from $19.6 million, or 7.4% of net sales, in the same quarter last year[8] - Net sales for the three months ended November 1, 2025, were $235.153 million, a decrease of 10.9% compared to $263.766 million for the same period in 2024[27] - Gross profit for the same period was $82.176 million, down from $95.157 million, reflecting a gross margin of 34.9% compared to 36.1% in the prior year[27] - The net loss for the three months ended November 1, 2025, was $6.426 million, compared to a net loss of $1.194 million for the same period in 2024[27] - Adjusted EBITDA for the three months ended November 1, 2025, was $9.776 million, a decrease from $19.584 million in the prior year[33] Store Operations - As of the end of the third quarter, the total number of stores was 560, with 74 store closures year-to-date[8] Liquidity and Assets - Cash and cash equivalents at the end of the third quarter totaled $17.2 million, with total liquidity of $103.4 million[6] - Total current assets decreased to $188.666 million as of November 1, 2025, from $226.166 million as of February 1, 2025[29] - Cash and cash equivalents at the end of the period were $17.213 million, a significant decrease from $48.523 million at the beginning of the period[29] - Inventory levels decreased to $128.817 million as of November 1, 2025, from $148.493 million as of February 1, 2025[29] - Total liabilities as of November 1, 2025, were $609.451 million, down from $679.530 million as of February 1, 2025[29] Expenses and Investments - The company incurred interest expense of $7.906 million for the three months ended November 1, 2025, compared to $8.784 million in the same period of 2024[27] - Marketing expenses increased to $15.715 million for the three months ended November 1, 2025, compared to $13.056 million in the prior year[27] Future Outlook - For fiscal 2025, the company expects net sales between $995 million and $1.002 billion and adjusted EBITDA between $59 million and $62 million[13] - The company anticipates up to $50 million in tariff impact, with $40 million mitigated through various actions[13] Strategic Initiatives - The company is focusing on strengthening merchandising, rebalancing assortment, and investing in customer acquisition and loyalty initiatives[3] - The company has taken corrective actions to address execution missteps and is seeing early signs of improvement[2]