Financial Performance - Total revenues for the three months ended September 30, 2025, were $430,000, a decrease of 48.7% compared to $838,000 for the same period in 2024[14]. - The company reported a net income of $14,184,000 for the three months ended September 30, 2025, compared to a net loss of $1,087,000 for the same period in 2024[14]. - For the nine months ended September 30, 2025, the company reported a net income of $10.6 million compared to a net loss of $4.9 million for the same period in 2024[22]. - The company reported revenues from discontinued operations of $226,000 for the three months ended September 30, 2025, compared to $85,000 for the same period in 2024, representing a 165% increase[48]. - The company reported a net income from discontinued operations of $250,000 for the three months ended September 30, 2025, compared to a loss of $44,000 for the same period in 2024[48]. Revenue Breakdown - License fees accounted for $406,000, representing 94.4% of total revenue, down from $731,000 or 87.2% in the prior year[73]. - Net revenues from IT & Industrial in North America for the nine months ended September 30, 2025, were $329,000, down from $589,000 in 2024[36]. - In the Asia Pacific region, net revenues from Automotive for the nine months ended September 30, 2025, were $313,000, a decrease from $597,000 in 2024[36]. - Japan contributed $277,000 in revenue, accounting for 64.4% of total revenue for the three months ended September 30, 2025[62]. Expenses and Margins - Gross margin for the nine months ended September 30, 2025, was $1,518,000, down from $2,389,000 for the same period in 2024[14]. - Gross margin for the three months ended September 30, 2025, was $421,000, a decline of 48.3% from $815,000 in the same period last year[73]. - Research and development expenses for the three months ended September 30, 2025, were $794,000, slightly down from $822,000 in the same period of 2024[14]. - Research and development expenses increased by 5.6% to $2.8 million for the nine months ended September 30, 2025, compared to $2.7 million in 2024[81]. - Total costs and expenses for the three months ended September 30, 2025, were $2,127,000, compared to $2,054,000 for the same period in 2024, an increase of 3.5%[60]. Assets and Liabilities - The total current assets increased to $32,193,000 as of September 30, 2025, compared to $17,685,000 as of December 31, 2024[12]. - The company’s total liabilities were $6,016,000 as of September 30, 2025, compared to $1,939,000 as of December 31, 2024[12]. - Cash and cash equivalents decreased to $11,585,000 as of September 30, 2025, from $16,427,000 as of December 31, 2024[12]. - The accumulated deficit improved to $(213,497,000) as of September 30, 2025, from $(224,080,000) as of December 31, 2024[12]. - The company has an accumulated deficit of approximately $213.5 million as of September 30, 2025, down from $224.1 million at the end of 2024[31]. Gains and Other Income - The company recognized a gain from patent assignment of $19,389,000 for the three months ended September 30, 2025[14]. - The company recognized a gain of approximately $19.4 million from a patent assignment during the third quarter of 2025[39]. - Gain from patent assignment was $19.4 million for the nine months ended September 30, 2025[86]. Shareholder and Market Activities - The company has entered into an At The Market Offering Agreement with Ladenburg Thalmann & Co. Inc. to issue and sell up to approximately $10 million of shares of common stock[51]. - The company has an At-the-Market Offering Program allowing it to issue and sell up to $10 million of common stock, with a commission of 3.0% on gross sales price per share sold[107][108]. - No shares were sold under the Ladenburg ATM Facility during the three and nine months ended September 30, 2025, while 1,423,441 shares were sold in the same periods of 2024, generating net proceeds of $5.8 million[110]. Legal and Compliance - The company has identified material weaknesses in internal controls over financial reporting, particularly in the design and operation of controls related to income tax calculations and management override risks[119][120]. - The company is involved in ongoing legal proceedings related to patent infringement against Apple and Samsung, with a settlement reached with Samsung in August 2025[115]. Operational Considerations - The ongoing war in Ukraine may exacerbate supply chain disruptions, impacting the company's operations and financial conditions[72]. - The company has sufficient cash to meet its obligations for at least one year from the date of the financial statements, despite operating losses and negative cash flows from operations[97]. - The company may need additional capital sources beyond cash on hand and its ATM Facility if operations do not become cash flow positive, potentially leading to equity investments or debt arrangements[98].

Revenue Performance - Revenue for Q3 2025 was $533 million, a decrease of $22 million or 4.0% compared to $555 million in Q3 2024, driven by lower Net Commercial Activity and project revenue[182][193]. - Revenue for the nine months ended September 30, 2025, was $1,609 million, a decrease of $43 million or 2.6% compared to $1,652 million in the prior year period[207]. - Total Employer Solutions Revenue for Q3 2025 was $533 million, a decrease of $22 million from $555 million in Q3 2024, primarily due to declines in project revenue[230]. Recurring Revenues - Recurring revenues decreased by $15 million or 3.0%, from $504 million in Q3 2024 to $489 million in Q3 2025, primarily due to lower Net Commercial Activity[194]. - Recurring revenues decreased by $17 million or 1.1%, from $1,518 million in the prior year period to $1,501 million, primarily due to lower Net Commercial Activity[208]. Expenses and Costs - Cost of services, exclusive of depreciation and amortization, decreased by $31 million or 8.7% in Q3 2025 compared to the prior year, attributed to lower compensation expenses and productivity initiatives[195]. - Selling, general and administrative expenses decreased by $55 million or 38.7% in Q3 2025, driven by lower professional fees and a reduction in compensation expenses[197]. - Cost of services, excluding depreciation and amortization, decreased by $56 million or 5.3% for the nine months ended September 30, 2025, driven by productivity initiatives and lower revenues[209]. - Selling, general and administrative expenses decreased by $113 million or 26.0% for the nine months ended September 30, 2025, primarily due to lower compensation expenses and professional fees[211]. Goodwill Impairment - A non-cash goodwill impairment charge of $1,338 million was recorded in Q3 2025, with no impairment recognized in Q3 2024[199]. - The company recorded a non-cash goodwill impairment charge of $2,321 million for the nine months ended September 30, 2025, with no impairment recognized in the prior year[213]. - The company reported a Goodwill impairment charge of $1,338 million for Q3 2025, contributing to a net loss from continuing operations of $(1,054) million[226]. Loss from Operations - Loss from continuing operations before taxes was $1,253 million in Q3 2025, compared to a loss of $53 million in Q3 2024, primarily due to the goodwill impairment charge[204]. - Loss from continuing operations before taxes was $2,349 million for the nine months ended September 30, 2025, compared to a loss of $203 million in the prior year[219]. Tax and Interest - Income tax benefit was $204 million for the nine months ended September 30, 2025, with an effective tax rate of 9%, lower than the 21% U.S. statutory corporate income tax rate[220]. - The One Big Beautiful Bill Act (OBBBA) resulted in a deferred tax benefit of approximately $12 million for the three months ended September 30, 2025[221]. - Interest expense decreased by $15 million for the nine months ended September 30, 2025, primarily due to partial debt repayment and loan repricing[217]. Cash Flow and Liquidity - Free Cash Flow for the nine months ended September 30, 2025, was $151 million, a significant improvement from $(20) million in the same period of 2024[237]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $236 million, compared to $75 million in the prior year, driven by lower separation costs[236]. - Cash provided by operating activities was $236 million for the nine months ended September 30, 2025, compared to $75 million for the same period in 2024[252]. - Cash used in investing activities was $98 million for the nine months ended September 30, 2025, compared to cash provided of $877 million in the prior year[253]. - Cash used in financing activities was $288 million for the nine months ended September 30, 2025, down from $1,028 million in the same period in 2024[254]. - The company anticipates that its liquidity position will remain strong, supported by cash flows from operations and availability under its revolving credit facility[239]. Share Repurchase and Dividends - As of September 30, 2025, the company repurchased 6,580,136 shares for $25 million and 13,881,417 shares for $65 million during the nine months[245]. - The company authorized a total of $281 million for share repurchases as of February 13, 2025[244]. - The quarterly dividend of $0.04 per share was approved for payment on December 15, 2025[248]. Adjusted Metrics - Adjusted Net Income from Continuing Operations for Q3 2025 was $62 million, compared to $48 million in Q3 2024, reflecting a 29.2% increase[226]. - Adjusted EBITDA from Continuing Operations for Q3 2025 was $138 million, up from $118 million in Q3 2024, resulting in an Adjusted EBITDA Margin of 25.9% compared to 21.3% in the prior year[228]. - Gross Profit for Q3 2025 increased to $178 million from $174 million in Q3 2024, with an Adjusted Gross Profit of $206 million, up from $200 million[233]. - Adjusted Gross Profit Margin for Q3 2025 was 38.6%, an increase from 36.0% in Q3 2024, indicating improved operational efficiency[233]. Other Financial Information - The change in fair value of the Tax Receivable Agreement resulted in a gain of $66 million in Q3 2025, an increase of $93 million compared to a loss of $27 million in Q3 2024[201]. - The change in fair value of the tax receivable agreement resulted in a gain of $34 million for the nine months ended September 30, 2025, an increase of $85 million compared to a loss of $51 million in the prior year[216]. - Depreciation and amortization expenses increased by $5 million or 21.7% in Q3 2025, primarily driven by capitalized software[196]. - Total operating expenses for Q3 2025 were $1,500 million, significantly higher than $216 million in Q3 2024, largely due to the goodwill impairment charge[182]. - The company has a remaining cash outflow of $49 million for 2025 related to its strategic partnership with Wipro[263]. - The company expects to make payments of approximately $164 million under the Tax Receivable Agreement in 2026[261].

Financial Performance - Revenues from continuing operations for Q3 2025 were $0.4 million, a decrease of 48.7% compared to Q3 2024[5] - Total revenues for the three months ended September 30, 2025, were $430 million, a decrease of 48% compared to $838 million for the same period in 2024[20] - Net income for the three months ended September 30, 2025, was $14.184 million, compared to a net loss of $1.087 million for the same period in 2024[23] - Operating income for the three months ended September 30, 2025, was $13.810 million, compared to an operating loss of $1.225 million for the same period in 2024[20] - Basic and diluted net income per share for the three months ended September 30, 2025, was $0.85, compared to a loss of $0.07 for the same period in 2024[20] Operating Expenses - Operating expenses from continuing operations for Q3 2025 were $2.1 million, an increase of 4.0% compared to Q3 2024[10] - Total operating expenses for the three months ended September 30, 2025, were $2.122 million, compared to $2.040 million for the same period in 2024[20] Cash and Assets - Cash and accounts receivable totaled $12.2 million as of September 30, 2025, down from $17.2 million as of December 31, 2024[12] - Cash and cash equivalents at the end of the period were $11.585 million, down from $17.599 million at the end of September 30, 2024[28] - Total current assets increased to $32.2 million as of September 30, 2025, compared to $17.7 million as of December 31, 2024[18] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $2.843 million, an increase of 5.6% from $2.692 million for the same period in 2024[20] Gains and Losses - The gain from patent assignment to Aequitas was $15.5 million, which was paid in October 2025[5] - The company recognized a gain from patent assignment of $19.389 million for the three months ended September 30, 2025[20] - The company experienced a foreign currency translation adjustment loss of $33,000 for the three months ended September 30, 2025[23] Strategic Focus - The company is focusing on expanding its MultiSensing AI computer vision platform for the automotive sector[7] - The legacy business is experiencing a faster decline in revenues than anticipated, prompting a shift towards securing new partnerships in the automotive market[8] Non-Recurring Revenues - Revenues from non-recurring engineering for Q3 2025 were $24,000, a decrease of 77.6% compared to Q3 2024[9] - Cash used by operations in Q3 2025 was $1.5 million, compared to $1.3 million for Q3 2024[11]

Financial Performance - Dentsply Sirona reported a net loss of $428 million for the three months ended September 30, 2025, compared to a net loss of $495 million for the same period in 2024, reflecting a 13.5% improvement year-over-year[13]. - Total comprehensive loss for the nine months ended September 30, 2025, was $394 million, a decrease from $482 million in the same period of 2024, indicating an 18.3% reduction in losses[13]. - Net loss for the nine months ended September 30, 2025, was $453 million, compared to a loss of $482 million for the same period in 2024[19]. - The total comprehensive loss for the three months ended September 30, 2025, was $459 million, slightly higher than the $456 million reported in the same period of 2024[13]. - Comprehensive loss attributable to Dentsply Sirona was $458 million for the three months ended September 30, 2025, compared to $455 million in the prior year[13]. - For the nine months ended September 30, 2025, the net loss was $453 million, an improvement from a net loss of $482 million in the same period of 2024[13]. - The total comprehensive loss for the nine months ended September 30, 2025, was $395 million, compared to $484 million in the same period of 2024[13]. - The company continues to focus on improving its financial performance despite ongoing losses in both net and comprehensive categories[13]. Cash and Liquidity - Cash and cash equivalents increased to $363 million as of September 30, 2025, up from $272 million at the end of 2024, representing a 33.5% increase[15]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $134 million, down from $374 million in 2024[19]. - The company reported a net increase in cash and cash equivalents of $91 million for the nine months ended September 30, 2025[19]. - Total cash and cash equivalents at the end of the period was $363 million, compared to $296 million at the end of September 2024[19]. - The company had $736 million available under lines of credit as of September 30, 2025[190]. Sales and Revenue - Total net sales for the three months ended September 30, 2025, were $904 million, a decrease of 4.9% compared to $951 million in the same period of 2024[29]. - For the nine months ended September 30, 2025, total net sales were $2,719 million, down 5.9% from $2,888 million in 2024[29]. - The Orthodontic and Implant Solutions segment saw a significant decline, with net sales dropping by $36 million (15.0%) to $205 million for the three months ended September 30, 2025, primarily due to lower volumes of clear aligners following the suspension of Byte sales[143][145]. - The United States region experienced a notable decline in net sales, down $83 million (22.2%) to $291 million for the three months ended September 30, 2025, primarily due to lower volumes of Byte products and CAD/CAM equipment[147][148]. - The Essential Dental Solutions segment saw a decrease in net sales by $12 million (3.4%) to $357 million for the three months ended September 30, 2025, mainly due to lower sales of preventive and restorative products[141][142]. - Net sales in Europe increased by $35 million (9.9%) to $382 million for the three months ended September 30, 2025, primarily due to higher volumes of treatment centers and imaging equipment[150][151]. Expenses and Costs - SG&A expenses decreased by $35 million (8.8%) to $355 million for the three months ended September 30, 2025, and by $149 million (12.3%) to $1,055 million for the nine months ended September 30, 2025, primarily due to lower marketing expenses and headcount costs[158]. - R&D expenses decreased by $3 million (9.2%) to $37 million for the three months ended September 30, 2025, and by $13 million (10.9%) to $110 million for the nine months ended September 30, 2025, as the company continues to prioritize investments in digital workflow solutions and product development[160]. - The company incurred restructuring and other costs of $18 million for the nine months ended September 30, 2025, compared to $45 million in the same period of 2024, a decrease of 60%[50]. - Restructuring costs decreased to $5 million for the three months ended September 30, 2025, from $23 million in the same period of 2024, and to $18 million for the nine months ended September 30, 2025, from $45 million in 2024[163]. Assets and Liabilities - Total assets decreased to $5,653 million as of September 30, 2025, down from $5,753 million at December 31, 2024, a decline of 1.7%[15]. - Long-term debt increased to $2,017 million from $1,586 million, representing a 27.2% increase[15]. - The accumulated deficit grew to $1,385 million as of September 30, 2025, compared to $835 million at the end of 2024, indicating a 65.8% increase[15]. - Dentsply Sirona's total equity decreased to $1,478 million from $1,943 million, a decline of 23.8%[15]. - The company's total net debt to total capitalization ratio increased to 57.9% as of September 30, 2025, compared to 48.9% at December 31, 2024[190]. Impairments and Charges - Goodwill asset impairment for the nine months ended September 30, 2025, was $409 million, compared to $504 million in 2024[19]. - The Company recorded pre-tax goodwill impairment charges of $262 million for the three months ended September 30, 2025, and $409 million for the nine months ended September 30, 2025, primarily related to the Implant & Prosthetic Solutions reporting unit[161][162]. - An additional pre-tax goodwill impairment charge of $253 million was recorded for the same reporting unit as of September 30, 2025, driven by lower-than-expected volumes[87]. Legal and Regulatory Matters - The Company is involved in multiple securities litigations, including a consolidated class action in the SDNY Court, with claims alleging violations of U.S. securities laws from June 9, 2021, to May 9, 2022[92]. - The Company continues to incur significant legal fees related to these pending cases and may face substantial damages if any lawsuits are decided adversely[107][108]. - The IRS is examining the Company's U.S. federal income tax returns for 2015 and 2016, proposing an adjustment that could result in additional federal income taxes on a distribution of $451 million related to a stock redemption[109]. - The SEC concluded its investigation of the Company and does not intend to recommend any enforcement action against it as of October 14, 2025[93]. Market Conditions and Challenges - The Company has experienced higher prices for certain raw materials, negatively impacting margins, and is facing challenges due to macroeconomic conditions affecting consumer confidence and discretionary spending[124][125]. - The Company delivered a one-year notice of non-renewal for its distribution agreements with Patterson Companies, which could materially affect its business if new agreements are not secured[132]. - The Company's operations in Israel, which contributed approximately 3% of consolidated net sales, remain unaffected by geopolitical conflicts, although sales to Turkey have been impacted by import restrictions[129][130].

FDA Approvals and Product Launches - Amtagvi® (lifileucel) received FDA approval on February 16, 2024, for treating adult patients with unresectable or metastatic melanoma previously treated with a PD-1 blocking antibody[211]. - The company plans to launch Amtagvi® in additional markets, including Canada, the UK, Australia, Switzerland, and the EU, with potential annual addressable patients exceeding 30,000[204]. - Amtagvi® received FDA approval in February 2024, with revenues recognized upon patient infusion, while Proleukin® revenues are recognized upon shipment or delivery[227][228]. Manufacturing and Capacity - The iCTC manufacturing facility is capable of treating several thousand cancer patients annually, with plans to scale capacity to supply over 5,000 patients per year and a long-term goal of over 10,000 patients annually[220]. - The iCTC is the first FDA-approved facility for commercial TIL cell therapy, located in Philadelphia, and is among the largest cell therapy manufacturing facilities globally[220]. - The centralized manufacturing process is expected to improve gross margin and operating expenses by transitioning all manufacturing activities to the iCTC by early 2026[219][221]. - The company is exploring next-generation TIL cell therapy manufacturing processes to streamline development timelines and costs[220]. Clinical Trials and Research - The company is conducting two ongoing registrational trials to support a supplementary BLA for lifileucel in frontline advanced melanoma and advanced non-small cell lung cancer[207][208]. - In the IOV-LUN-202 trial for advanced non-small cell lung cancer (NSCLC), the objective response rate was 25.6% following treatment with lifileucel monotherapy, with a disease control rate of 71.8%[224]. - The IOV-4001 genetically modified TIL cell therapy is in a Phase 2 clinical trial, utilizing TALEN® technology to enhance efficacy by inactivating the PD-1 gene[224][229]. - The IOV-END-201 trial is investigating lifileucel in endometrial cancer patients previously treated with platinum-based chemotherapy and anti-PD-1 therapy[224]. - The IOV-5001 therapy, designed to enhance TIL efficacy, is currently in IND-enabling studies, with an IND application submission planned for 2026[229]. Financial Performance - Revenue for the three months ended September 30, 2025, increased by $8.9 million, or 15%, and for the nine months ended September 30, 2025, increased by $86.4 million, or 96%, compared to the same periods in 2024[242]. - Amtagvi® revenue for the three months ended September 30, 2025, was $57.5 million, a 37% increase from $42.0 million in 2024, while Proleukin® revenue decreased by 40% to $10.0 million[242]. - Total costs and expenses for the three months ended September 30, 2025, increased by $14.7 million, or 10%, and for the nine months ended September 30, 2025, increased by $107.5 million, or 27%, compared to the same periods in 2024[245]. - Research and development expenses for the three months ended September 30, 2025, increased by $8.1 million, or 12%, primarily due to a $8.0 million increase in payroll and related costs[248]. - Selling, general, and administrative expenses for the three months ended September 30, 2025, decreased by $4.8 million, or 12%, mainly due to an $8.7 million decrease in stock-based compensation[255]. Cash Flow and Capital Management - As of September 30, 2025, the company had $306.8 million in cash, cash equivalents, short-term investments, and restricted cash[267]. - Net cash used in operating activities for the nine months ended September 30, 2025 was $249.8 million, a decrease of $29.9 million compared to the same period in 2024, driven by increased revenues from sales of Amtagvi® and Proleukin®[278]. - Net cash provided by investing activities for the nine months ended September 30, 2025 was $46.7 million, compared to net cash used of $120.1 million for the same period in 2024, reflecting a significant increase in cash provided[280]. - The company expects to continue incurring significant expenses to support the commercial launch of Amtagvi® and ongoing clinical programs[268]. - The company has sufficient capital to fund anticipated operating expenses and capital expenditures for at least the twelve months following the issuance of its financial statements[268]. Strategic Initiatives and Restructuring - The company approved a strategic restructuring plan in August 2025, resulting in a workforce reduction of approximately 19% to optimize business performance and extend cash runway[269]. - The company expects Amtagvi® infusions to lag behind Proleukin® sales by 2-3 months, with ATCs utilizing 15-18 Proleukin® vials per Amtagvi® infusion[243]. Intellectual Property and Regulatory Compliance - More than 90 U.S. patents related to TIL cell therapy have been established, with over 45 patents specifically related to Gen 2 TIL manufacturing processes[226]. - The company reviews intangible assets for impairment at least annually, with no indicators of impairment found as of September 30, 2025[295]. - Revenue recognition follows ASC 606, with adjustments for expected chargebacks, discounts, and rebates[297][299]. Economic and Market Conditions - No material impact from inflation on business operations has been reported as of September 30, 2025[306]. - Foreign currency transaction gains and losses were immaterial for the three and nine months ended September 30, 2025[308].

Financial Performance - Adjusted EBITDA increased by $17 million to $326 million for the first nine months of 2025, with an adjusted EBITDA margin of 20.4%, up from 19.3% in the same period of 2024[92]. - Total revenue for the first nine months of 2025 decreased by $3 million to $1.60 billion, impacted by a $10 million reduction due to business exits; excluding this, revenue would have increased[93]. - Free cash flow rose by $32 million to $96 million in the first nine months of 2025, driven by improved operational performance[94]. - Net income for Q3 2025 was $33,766,000, a 276.5% increase from Q3 2024, while diluted EPS rose to $0.74, up 270.0% year-over-year[118]. - Adjusted diluted EPS for Q3 2025 was $1.09, a 29.8% increase from Q3 2024, reflecting benefits from pricing and cost management actions[118]. - Adjusted EBITDA for Q3 2025 reached $118,887,000, compared to $104,902,000 in Q3 2024, marking a 13.3% increase[123]. - Adjusted EBITDA margin improved to 22.0% in Q3 2025 from 19.9% in Q3 2024, reflecting enhanced operational efficiency[123]. - Total revenue for Q3 2025 was $279,945,000, a decrease of 5.8% compared to Q3 2024, and for the first nine months of 2025, it was $852,296,000, down 6.3% year-over-year[137]. Cost Management - Selling, general and administrative (SG&A) expenses decreased by 6.8% in Q3 2025 compared to Q3 2024, contributing to improved profitability[88]. - SG&A expense decreased by 6.8% in Q3 2025 and 6.3% in the first nine months compared to the same periods in 2024, driven by cost management actions[109]. - The company expects to realize annual cost savings of approximately $6 million in cost of sales and $14 million in SG&A expenses in 2025 compared to 2024[129]. - Restructuring and integration expenses dropped by 73.6% in Q3 2025 and 59.3% in the first nine months compared to 2024, reflecting alignment with growth strategy[112]. Debt and Cash Management - The company reduced net debt by $45 million from the previous year end, reflecting a commitment to enhancing financial performance[90]. - Cash and cash equivalents stood at $26 million as of September 30, 2025, with an additional $393 million available for borrowing under the revolving credit facility[99]. - Total debt as of September 30, 2025, was $1,449,785,000, down from $1,503,151,000 at the end of 2024, while net debt decreased to $1,423,982,000[122]. - As of September 30, 2025, total debt obligations were $1.47 billion, down from $1.52 billion as of December 31, 2024[146]. - The principal amount of fixed interest rate debt was $925 million at an average interest rate of 8.1% as of September 30, 2025[146]. Strategic Investments - The acquisition of assets from JPMorgan Chase's CheckMatch service for $25 million is expected to strengthen the B2B Payments segment[91]. - The company anticipates capital expenditures between $90 million and $100 million for the full year 2025, compared to $94 million in 2024[99]. - The company is focused on growth investments, debt reduction, and returning capital to shareholders through dividends, which are subject to board approval[99]. - The North Star program aims for a $100 million run-rate improvement in free cash flow and an $80 million run-rate improvement in adjusted EBITDA by 2026[128]. - Restructuring and integration expenses incurred through September 30, 2025, totaled approximately $110 million, with an additional $5 million expected in Q4 2025[128]. Tax and Interest - Interest expense increased by 2.1% in Q3 2025 and 2.0% in the first nine months, primarily due to higher interest rates despite a reduction in average debt outstanding[115]. - The effective income tax rate decreased to 28.5% in Q3 2025 from 33.6% in Q3 2024, benefiting from lower tax impacts from foreign operations[117]. Asset Performance - The company recorded a 100% reduction in asset impairment charges in Q3 2025 compared to $6,700,000 in Q3 2024, indicating improved asset performance[113].

Company Overview - PLAYSTUDIOS, Inc. has developed a portfolio of free-to-play social casino games, including Tetris® and acquired Brainium in late 2022[127]. Revenue Generation - Revenue is primarily generated from in-game virtual currency sales, with a significant concentration in North America[130]. - The company incurs platform fees of approximately 30% for in-game purchases processed by third-party platforms like Apple App Store and Google Play Store[133]. - Virtual currency revenue for playGAMES decreased by $11.4 million, or 19.9%, to $46.1 million during the three months ended September 30, 2025, compared to $57.6 million in the same period of 2024[148]. - The net revenue for playAWARDS remained flat at $264,000 during the three months ended September 30, 2025, compared to $3,000 in the same period of 2024[152]. - Revenue for the three months ended September 30, 2025, was $57.6 million, a decrease from $71.2 million in the same period of 2024, representing a decline of approximately 19.1%[182]. User Engagement Metrics - Daily Active Users (DAU) and Monthly Active Users (MAU) are key metrics for measuring player engagement, with DAU defined as the number of individuals playing a game on a particular day[136][137]. - Daily Paying Users (DPU) is tracked to understand the size of the active player base making in-game purchases, with DPU defined as the number of individuals making a purchase in a game on a particular day[138]. - Average Daily Active Users (DAU) for playGAMES decreased by 750, or 25.3%, to 2,211 in the three months ended September 30, 2025, compared to 2,961 in the same period of 2024[148]. - Average Monthly Active Users (MAU) for playGAMES decreased by 3,153, or 24.9%, to 9,505 in the three months ended September 30, 2025, compared to 12,658 in the same period of 2024[148]. - Average Daily Revenue Per DAU (ARPDAU) is calculated to measure overall monetization, defined as game and advertising revenue divided by Average DAU[141]. Financial Performance - Net loss for the three months ended September 30, 2025, increased by $6.0 million, or 194.4%, to $9.1 million compared to $3.1 million in the same period of 2024[146]. - The operating loss for the three months ended September 30, 2025, increased by $3.1 million, or 64.6%, to $7.9 million compared to $4.8 million in the same period of 2024[146]. - Consolidated AEBITDA decreased by $7.4 million to $7.2 million for the three months ended September 30, 2025, representing a 50.5% decline compared to the same period in 2024[172]. - playGAMES AEBITDA decreased by $9.8 million to $13.4 million for the three months ended September 30, 2025, with a margin of 23.3% compared to 32.6% in 2024[174]. - Net loss for the three months ended September 30, 2025, was $(9.1) million, compared to a net loss of $(3.1) million in the same period of 2024, indicating a worsening loss margin from (4.3)% to (15.8)%[182]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, decreased by $10.5 million, or 13.8%, to $65.5 million compared to $76.0 million in the same period of 2024[155]. - Total operating expenses for the nine months ended September 30, 2025, decreased by $38.3 million, or 16.5%, to $193.8 million compared to $232.1 million in the same period of 2024[156]. - Selling and marketing expenses decreased by $0.9 million to $14.2 million for the three months ended September 30, 2025, primarily due to a $0.7 million decrease in user acquisition expenses[159]. - Research and development expenses decreased by $1.8 million to $14.8 million for the three months ended September 30, 2025, mainly due to a $1.1 million reduction in employee costs[161]. - General and administrative expenses increased by $0.5 million to $12.1 million for the three months ended September 30, 2025, primarily due to a charitable donation of $1.3 million[163]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025, totaled $106.3 million, with restricted cash of $0.6 million[184]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $22.6 million, down from $34.1 million in 2024, reflecting a decrease of approximately 33.8%[188]. - Net cash used in investing activities during the nine months ended September 30, 2025, was $(12.7) million, a reduction from $(22.1) million in 2024, indicating a decrease of approximately 42.3%[190]. - Net cash used in financing activities for the nine months ended September 30, 2025, was $(14.5) million, significantly lower than $(38.6) million in 2024, a reduction of approximately 62.4%[191]. - As of September 30, 2025, there were no outstanding amounts under the Credit Agreement, indicating a strong liquidity position[187]. Future Outlook - The company plans to continue making significant investments to support business growth and may require additional funds for new game development and acquisitions[186]. - The decrease in cash provided from operating activities was primarily due to a decrease in net revenue, offset by reduced costs and favorable changes in operating assets and liabilities[189].

Clinical Trials - Enrollment of 100 patients in the ongoing Halneuron® Phase 2b trial, with 80 patients completing treatment; interim analysis expected in Q4 2025[1][2] - Halneuron® has received fast track designation from the FDA for the treatment of chemotherapy-induced neuropathic pain (CINP)[7] - SP16 IV Phase 1b trial is fully funded by the National Cancer Institute and will commence after FDA consultation[8] Financial Performance - Research and development expenses for Q3 2025 were $14.5 million, a significant increase from $0.5 million in Q3 2024, primarily due to $12.0 million in acquired in-process R&D expenses for SP16[3] - General and administrative expenses decreased to $1.3 million in Q3 2025 from $1.8 million in Q3 2024, mainly due to reduced legal and accounting fees[4] - Net loss attributable to common stockholders for Q3 2025 was $15.7 million, or $8.20 per share, compared to a net loss of $2.3 million, or $2.05 per share, in Q3 2024[5] Cash and Assets - Cash on hand as of September 30, 2025, was $10.1 million, providing operational runway through Q1 2026[5] - Total assets as of September 30, 2025, were $91.99 million, down from $94.31 million at the end of 2024[16] - Total liabilities decreased to $14.61 million as of September 30, 2025, from $30.03 million at the end of 2024[16] Licensing and Partnerships - The company secured an exclusive worldwide, royalty-free license to develop and commercialize SP16 for cancer-related pain in an all-stock transaction[1]

Clinical Trials - Enrollment of 100 patients in the ongoing Halneuron® Phase 2b trial, with 80 patients completing treatment, and interim analysis expected in Q4 2025[1][2] - Halneuron® has received fast track designation from the FDA for the treatment of chemotherapy-induced neuropathic pain (CINP)[7] - The forthcoming SP16 IV Phase 1b trial is fully funded by the National Cancer Institute and will commence after FDA consultation[8] Financial Performance - Net loss attributable to common stockholders for Q3 2025 was $15.7 million, or $8.20 per share, compared to a net loss of $2.3 million, or $2.05 per share, in Q3 2024[5] - Research and development expenses for Q3 2025 were $14.5 million, a significant increase from $0.5 million in Q3 2024, primarily due to $12.0 million in acquired in-process R&D expenses related to SP16[3] - General and administrative expenses decreased to $1.3 million in Q3 2025 from $1.8 million in Q3 2024, mainly due to reduced legal and accounting fees[4] Assets and Liabilities - Cash on hand as of September 30, 2025, was $10.1 million, providing operational runway through Q1 2026[5] - Total assets as of September 30, 2025, were $91.99 million, down from $94.31 million at the end of 2024[16] - Total liabilities decreased to $14.61 million as of September 30, 2025, from $30.03 million at the end of 2024[16] Licensing and Partnerships - The company secured an exclusive worldwide, royalty-free license to develop and commercialize SP16 for cancer-related pain[1]

Financial Performance - Revenues for the third quarter of 2025 increased by 3.4% to $78.0 million, up from $75.7 million in the prior-year period[2] - Adjusted EBITDA rose 26.1% to $14.8 million, compared to $11.7 million in the third quarter of 2024[2] - Net loss improved to $(7.7) million, or $(0.21) per diluted common share, compared to a net loss of $(8.5) million, or $(0.24) per diluted common share in the prior-year period[2] - Total revenues for the company reached $77,950, a 3.4% increase from $75,687 in 2024[17] - Adjusted EBITDA for the three months ended September 30, 2025, was $14,812, up 26.5% from $11,742 in 2024[21] - The company reported a net loss of $7,678 for the three months ended September 30, 2025, an improvement from a net loss of $8,472 in 2024[21] - Corporate expenses decreased to $(1,491) from $(1,742) in the same quarter last year[21] Segment Performance - American Place Casino achieved a revenue increase of 14.0%, reaching a record $32.0 million in the third quarter[10] - Chamonix Casino Hotel's revenues grew by 7.3% in the third quarter, with Adjusted Property EBITDA improving from $(0.7) million to $2.1 million[3] - The Midwest & South segment reported revenues of $58.3 million, a 7.0% increase from $54.5 million in the prior-year period[10] - Revenues for the Midwest & South segment increased to $58,325, up 7.3% from $54,510 in 2024[17] - Adjusted Segment EBITDA for the Midwest & South segment rose to $11,552, compared to $10,249 in the same period last year, reflecting a 12.7% increase[17] - Adjusted Segment EBITDA for the West segment increased by 167.9% to $3.2 million, driven by contributions from Chamonix/Bronco Billy's[10] - The West segment's revenues decreased by 7.2% to $17,993 from $19,387 in 2024[18] - Bronco Billy's Casino and Chamonix Casino Hotel saw a revenue increase of 7.3% to $13,994, while Grand Lodge Casino's revenue decreased by 16.6% to $3,999[18] Operational Strategy - The company anticipates continued growth in operations at American Place and Chamonix as they ramp up further[2] - The company is targeting operational efficiencies at Chamonix to enhance profitability as revenues grow[3] - The company is focused on growth projects, including the construction of the permanent American Place facility, with expected operational performance improvements[26] - Anticipated construction budgets and timelines for projects like Chamonix and American Place are being closely monitored[26] - The company is implementing a revamped marketing strategy at Chamonix to enhance access to the Colorado Springs and southern Denver markets[26] - There are expectations regarding the ramp-up of operations at Chamonix and American Place, with potential impacts on cash flow generation[26] Risks and Challenges - The company faces risks related to substantial indebtedness and the ability to refinance existing debt[27] - Construction risks, including potential cost overruns and delays, are significant concerns for the American Place project[27] - The financial performance of completed projects and renovations will be critical for future growth and operational efficiency[27] - The company is assessing the impact of macroeconomic conditions and competition on its business strategy[27] - There are ongoing evaluations of the effectiveness of management changes and operational improvements at various properties[27] Financial Position - As of September 30, 2025, the company had $30.9 million in cash and cash equivalents, with $450.0 million in outstanding senior secured notes due 2028[7] - For the nine months ended September 30, 2025, Adjusted Segment EBITDA was $42,352, slightly down from $43,683 in 2024[24] - The company completed the sale of Stockman's Casino on April 1, 2025, which impacted segment revenues[19]