Financial Performance - Consolidated net sales for Q3 2025 were $171.9 million, a decrease of $11.9 million, or 6.5%, compared to Q3 2024[3] - Gross margin for Q3 2025 was $60.4 million, or 35.1%, down from $67.4 million, or 36.7%, in Q3 2024[4] - Net loss for Q3 2025 was $(1.2) million, or $(0.05) per diluted share, compared to net income of $0.3 million, or $0.02 per diluted share, in Q3 2024[5] - Adjusted income from operations for Q3 2025 was $11.5 million, down from $13.2 million in Q3 2024[5] - Consolidated net sales for the nine months ended September 30, 2025 were $443.9 million, a decrease of $23.8 million, or 5.1%, compared to the same period in 2024[6] - Gross margin for the nine months ended September 30, 2025 was $161.9 million, or 36.5%, down from $179.5 million, or 38.4%, in the same period in 2024[6] - The net loss for the nine months ended September 30, 2025, was $45.089 million, compared to a net loss of $24.083 million in 2024, indicating an increase in losses of 87.2%[26] - For the three months ended September 30, 2025, the adjusted net income was $2,505,000, compared to $4,505,000 in 2024, reflecting a decrease of 44.4%[30] - For the nine months ended September 30, 2025, the adjusted net loss was $(5,406,000), compared to an adjusted net income of $674,000 in 2024[30] Expenses and Costs - Selling, general and administrative expenses for Q3 2025 were $35.5 million, a decrease of $3.3 million, or 8.5%, compared to Q3 2024[4] - Adjusted EBITDA for the twelve months ended September 30, 2025, was $47.217 million, compared to $22.973 million for the twelve months ended December 31, 2024, reflecting a significant increase[28] - The company reported a goodwill impairment of $33.237 million for the nine months ended September 30, 2025, which was not present in the same period in 2024[22] Assets and Liabilities - Cash and cash equivalents at the end of the period increased to $12.125 million from $5.984 million, representing a significant increase of 102.4%[26] - Total current assets as of September 30, 2025, were $374.968 million, slightly up from $373.568 million at the end of 2024[24] - Total liabilities decreased to $396.479 million as of September 30, 2025, from $404.387 million at the end of 2024, a reduction of 2.0%[24] - The company’s inventory increased to $221.185 million as of September 30, 2025, compared to $202.408 million at the end of 2024, marking an increase of 9.3%[24] Sales Breakdown - Net sales for the three months ended September 30, 2025, were $171.912 million, a decrease of 6.5% compared to $183.837 million for the same period in 2024[22] - The U.S. net sales for the three months ended September 30, 2025, were $158,121,000, down 7.1% from $170,222,000 in 2024[35] - The international net sales for the nine months ended September 30, 2025, increased by 0.9% to $37,913,000 compared to $36,540,000 in 2024[35] - The total net sales for the nine months ended September 30, 2025, were $443,859,000, a decrease of $23,886,000 or 5.3% from $467,745,000 in 2024[35] Future Outlook - The company will refrain from issuing formal financial guidance for 2025 due to ongoing uncertainty surrounding tariffs and trade dynamics[12] - The company is evaluating M&A opportunities to strengthen market share and long-term competitive positioning[2] Dividends - The Board of Directors declared a quarterly dividend of $0.0425 per share, payable on February 13, 2026[13] Share Information - The diluted weighted-average shares outstanding for the three months ended September 30, 2025, were 21,834, compared to 21,610 in 2024[31] - The adjusted diluted income per common share for the three months ended September 30, 2025, was $0.11, down from $0.21 in 2024, a decline of 47.6%[30]

Financial Performance - Q3 2025 revenue was $482 million, up 7% from Q3 2024, with recurring revenue of $298 million, up 10% and representing 62% of total revenue [5]. - Year-to-date 2025 revenue reached $1.28 billion, a 12% increase from year-to-date 2024, with recurring revenue of $906 million, up 11% and accounting for 71% of total revenue [6]. - Q3 2025 net income was $91 million, compared to $81 million in Q3 2024, while adjusted EBITDA was $171 million, up 2% from Q3 2024 [5]. - Year-to-date 2025 net income was $162 million, including a $22 million after-tax gain from the sale of a minority interest, compared to $105 million for year-to-date 2024 [6]. - Total revenues for Q3 2025 reached $482,359, an increase of 6.7% compared to $451,752 in Q3 2024 [23]. - Operating income for the nine months ended September 30, 2025, was $221,080, representing a 19.0% increase from $185,847 in the prior year [23]. - Net income for Q3 2025 was $91,250, a 12.4% increase compared to $81,427 in Q3 2024 [23]. - Total revenue for Q3 2025 was $482.4 million, representing a 6.0% increase compared to $451.8 million in Q3 2024 [26]. - Total revenue for the nine months ended September 30, 2025, was $1,278.2 million, a 12.0% increase from $1,141.3 million in the same period of 2024 [26]. Cash Flow and Assets - Q3 2025 cash flow from operating activities was $73 million, compared to $54 million in Q3 2024 [5]. - The company reported a net cash flow from operating activities of $73,038 for Q3 2025, compared to $54,008 in Q3 2024, indicating a growth of 35.2% [25]. - Cash and cash equivalents decreased to $199,268 from $216,394 at the end of Q4 2024, reflecting a decline of 7.5% [21]. - Total assets increased to $3,160,903, up from $3,025,293 at the end of Q4 2024, marking a growth of 4.5% [21]. - Total liabilities rose to $1,681,721, an increase of 5.0% from $1,600,966 in the previous quarter [21]. - ACI ended Q3 2025 with $199 million in cash and a debt balance of $873 million, resulting in a net debt leverage ratio of 1.3x adjusted EBITDA [7]. Revenue Segmentation - Software as a service and platform as a service revenues grew to $246,916, up 10.6% from $223,367 in the same quarter last year [23]. - Payment Software segment revenue for Q3 2025 was $284.0 million, an increase of 4.6% from $272.2 million in Q3 2024 [26]. - Biller segment revenue for Q3 2025 was $198.3 million, up 10.4% from $179.6 million in Q3 2024 [26]. - Recurring revenue for Q3 2025 was $298.3 million, up 10.2% from $270.9 million in Q3 2024 [27]. Guidance and Future Outlook - The full-year 2025 revenue guidance is raised to a range of $1.730 billion to $1.754 billion, up from the previous range of $1.710 billion to $1.740 billion [9]. - Adjusted EBITDA guidance for the full-year 2025 is raised to a range of $495 million to $510 million, up from the previous range of $490 million to $505 million [9]. Shareholder Actions - ACI announced a $500 million share repurchase authorization, reflecting a balanced approach to capital allocation [8]. Customer and Product Development - The company signed its first customer for ACI Connetic, its new cloud-native payments hub, indicating strong early interest and demand [4]. Earnings Per Share - Basic income per common share for Q3 2025 was $0.88, an increase from $0.78 in Q3 2024, reflecting a growth of 12.8% [23]. - Adjusted diluted EPS for Q3 2025 was $1.09, compared to $0.97 in Q3 2024, reflecting a 12.4% increase [27]. Research and Development - Research and development expenses for Q3 2025 were $42,567, up 13.5% from $37,660 in Q3 2024 [23]. Bookings - Annual recurring revenue (ARR) bookings for Q3 2025 were $12.6 million, a 13.5% increase from $11.1 million in Q3 2024 [27]. - License and services bookings for Q3 2025 totaled $81.4 million, up 21.9% from $67.0 million in Q3 2024 [27].

Vericel Corporation 64 Sidney Street Cambridge, MA 02139 T (617) 588-5555 F (617) 588-5554 www.vcel.com Vericel Reports Third Quarter 2025 Financial Results Record Third Quarter Total Revenue of $67.5 Million MACI Revenue Growth of 25% to $55.7 Million Exhibit 99.1 Net Income of $5.1 Million and Adjusted EBITDA Margin of 25% Record Third Quarter Operating Cash Flow of $22.1 Million More than 800 MACI Arthro Surgeons Trained to Date Conference Call Today at 8:30am Eastern Time CAMBRIDGE, Mass., November 6, 2 ...

"We have considerable momentum heading into the end of the year. We see tremendous potential for ozureprubart in large IgE-driven indications such as food allergy and CSU, and our recent financing gives us additional capital to advance our programs," said Brian Wong, President and CEO of RAPT. "Looking ahead, we plan to report topline results from Jeyou's Phase 2 trial of ozureprubart in asthma and to provide additional details from the recently reported Phase 2 clinical trial in CSU at a medical meeting ne ...

Revenue Performance - Revenue for Q3 2025 was $674.6 million, a decrease of 3.1% sequentially and an increase of 8.7% year over year[5] - Direct-to-Consumer (DTC) revenue reached a record $209.3 million, increasing 19.0% sequentially and 20.0% year over year[5] - Bingo Blitz revenue was $162.6 million, increasing 1.5% sequentially and 1.7% year over year[6] - Revenues for the three months ended September 30, 2025, increased to $674.6 million, up from $620.8 million in 2024, representing an 8.5% growth[20] Income Metrics - GAAP Net Income was $39.1 million, up 17.8% sequentially but down 0.5% year over year[5] - Adjusted Net Income surged to $65.8 million, reflecting a 912.3% increase sequentially and a 16.3% increase year over year[5] - Net income for the nine months ended September 30, 2025, was $102.9 million, a decrease of 42.5% compared to $178.9 million in 2024[20] - The company reported a net income margin of 5.0% for the nine months ended September 30, 2025, down from 9.4% in 2024[30] EBITDA and Cash Flow - Adjusted EBITDA for the quarter was $217.5 million, representing a 30.2% sequential increase and a 10.3% year-over-year increase[5] - Adjusted EBITDA for the nine months ended September 30, 2025, was $551.8 million, compared to $573.8 million in 2024, reflecting a decline of 3.8%[30] - Free Cash Flow for the nine months ended September 30, 2025, was $217.9 million, down from $268.3 million in 2024, a decrease of 18.7%[24] - Cash flows from operating activities for the nine months ended September 30, 2025, were $281.8 million, compared to $337.0 million in 2024, a decline of 16.3%[22] Costs and Expenses - Total costs and expenses for the three months ended September 30, 2025, were $576.2 million, an increase from $523.3 million in 2024, representing a 10.1% rise[20] Shareholder Returns - Playtika's Board declared a cash dividend of $0.10 per share, payable on January 9, 2026[7] - The company paid dividends totaling $112.5 million during the nine months ended September 30, 2025, compared to $74.3 million in 2024, an increase of 51.5%[22] User Metrics - Average Daily Paying Users (DPUs) were 354,000, a decrease of 6.3% sequentially but an increase of 17.6% year over year[6] Guidance - The company reaffirmed its full-year revenue guidance of between $2.70 billion and $2.75 billion, and Adjusted EBITDA guidance of between $715 million and $740 million[8] Impairment Charges - The company experienced an impairment charge of $1.9 million for the nine months ended September 30, 2025, compared to $36.3 million in 2024[30] Cash Position - Cash, cash equivalents, and short-term investments totaled $640.8 million as of September 30, 2025[5] Shares Information - The weighted-average shares used in computing net income per share attributable to common stockholders, basic, was 372.9 million for the nine months ended September 30, 2025[20]

Market Opportunity and Product Approval - Zusduri has an estimated total addressable market opportunity of over $5.0 billion for recurrent low-grade intermediate risk NMIBC, with an annual treatable population of approximately 82,000 in the U.S.[151] - The FDA approved Zusduri on June 12, 2025, as the first and only FDA-approved non-surgical treatment for recurrent low-grade intermediate risk NMIBC[151][164] - Jelmyto, approved on April 15, 2020, is designed for the treatment of low-grade UTUC and has a median duration of response (DOR) of 47.8 months in patients who achieved a complete response[159] Clinical Trial Results - The ATLAS trial showed Zusduri reduced the risk of recurrence, progression, or death by 55% compared to TURBT alone, with a complete response (CR) rate of 64.8% at three months[166] - The ENVISION trial demonstrated a 79.6% CR rate at three months following the initial instillation of Zusduri, meeting its primary endpoint[166] - In the Phase 3 ENVISION trial, Zusduri achieved a 79.6% complete response (CR) rate at three months and 60.8% maintained CR at 12 months among 240 patients[167] - The 18-month duration of response (DOR) for patients who achieved CR at three months was 80.6%, consistent with the 12-month DOR of 82.3%[168] - At 24 months, the DOR for patients who achieved CR at three months was 72.2%[169] - The FDA approved Zusduri on June 12, 2025, based on a CR rate of 78% at three months and 79% maintaining CR at 12 months[173] - The company initiated the Phase 3 UTOPIA trial for UGN-103, enrolling 99 patients globally, with a reported CR rate of 77.8% at three months[178] Financial Performance - Revenue for the three months ended September 30, 2025, was $27.5 million, and for the nine months, it was $72.0 million[190] - Revenue for the three months ended September 30, 2025, was $27.5 million, an increase of $2.3 million from $25.2 million in 2024, primarily due to higher sales volume of Jelmyto and the launch of Zusduri[212] - For the nine months ended September 30, 2025, revenue was $72.0 million, an increase of $6.2 million from $65.8 million in 2024, attributed to increased sales of Jelmyto and the launch of Zusduri[222] Expenses and Losses - Research and development expenses for the nine months ended September 30, 2025, totaled $52.8 million, up from $42.3 million in 2024[193] - Selling and marketing expenses increased to $23.7 million for the three months ended September 30, 2025, from $17.8 million in 2024, reflecting costs related to Zusduri commercial activities and expanded sales force[215] - General and administrative expenses rose to $13.9 million for the three months ended September 30, 2025, compared to $11.2 million in 2024, driven by higher compensation and commercialization support for Zusduri[216] - The net loss for the three months ended September 30, 2025, was $33.3 million, compared to a net loss of $23.7 million in 2024, reflecting an increase in operating loss[210] - Total operating expenses for the three months ended September 30, 2025, were $51.6 million, an increase of $11.3 million from $40.3 million in 2024[210] Cash Flow and Financing - As of September 30, 2025, the company had $127.4 million in cash and cash equivalents and marketable securities, indicating a strong liquidity position[231] - The company reported an accumulated deficit of $933.4 million as of September 30, 2025, and expects to continue incurring losses as it executes its strategy for the commercialization of Zusduri and Jelmyto[243] - The company raised approximately $120.0 million through a Securities Purchase Agreement in July 2023, selling 12,579,156 ordinary shares at a price of $9.54 per share[240] - The company has incurred negative cash flows from operations and expects to finance its cash needs through a combination of equity or debt financings and collaboration arrangements[245] - Future funding requirements will depend on various factors, including clinical trial progress and commercialization activities for Jelmyto and Zusduri[246] Debt and Obligations - The company entered into a loan agreement with Pharmakon for a senior secured term loan of up to $100.0 million, with the first tranche of $75.0 million funded in March 2022 and the second tranche of $25.0 million funded in December 2022[256] - The obligations under the loan agreement are guaranteed by UroGen Pharma Ltd. and secured by substantially all tangible and intangible assets[259] - The company received a one-year extension on the repayment period for all outstanding loans following FDA approval of the NDA for Zusduri, with repayments commencing in Q2 2027[258] Market Coverage and Exclusivity - Medicare patients with supplemental coverage are covered for Jelmyto, with over 150 million lives covered by commercial plans[161] - Jelmyto's new product exclusivity expired on April 15, 2023, but orphan drug exclusivity extends until April 15, 2027[157] - Zusduri is now accessible to over 296 million eligible patients in the U.S., with more than 95% of covered lives having open access[175] Other Financial Metrics - Interest expense on long-term debt increased to $3.4 million for the three months ended September 30, 2025, from $2.7 million in 2024, primarily due to the Pharmakon loan[218] - Interest expense on long-term debt increased to $11.6 million for the nine months ended September 30, 2025, up from $8.6 million in 2024, attributed to the $25.0 million third tranche under the Pharmakon loan funded in September 2024[229] - Net cash provided by investing activities was $33.8 million during the nine months ended September 30, 2025, compared to net cash used of $81.2 million in the same period of 2024, reflecting a net change of $115 million[262] - Net cash provided by financing activities decreased to $8.6 million in the nine months ended September 30, 2025, from $194.5 million in the same period of 2024, a decrease of $185.9 million[263] Currency and Inflation - The company does not currently engage in currency hedging activities to reduce currency exposure but may consider it in the future[267] - The company experienced a 1.2% appreciation of the U.S. dollar against the New Israeli Shekel during 2024, which could affect dollar-denominated results of operations[266] - Inflation has not had a material effect on the company's business or financial condition during the nine months ended September 30, 2025 or 2024[265]

Financial Position - As of September 30, 2025, VYNE had cash, cash equivalents, and marketable securities totaling $32.7 million, sufficient to fund operations into the first half of 2027[10] - The total stockholders' equity as of September 30, 2025, was $32.1 million, down from $52.1 million at the end of 2024[21] Revenue Performance - Revenues for the third quarter of 2025 were $0.2 million, compared to $0.1 million for the same period in 2024, primarily from royalty revenue[11] - Total revenues for the three months ended September 30, 2025, were $169 million, an increase from $121 million in the same period of 2024, representing a growth of 39.7%[23] - Royalty revenues for the nine months ended September 30, 2025, reached $440 million, compared to $417 million in 2024, indicating a year-over-year increase of 5.5%[23] Expenses and Losses - Research and development expenses decreased by $5.0 million, or 48.7%, to $5.3 million for the third quarter of 2025, down from $10.2 million in the same quarter of 2024[12] - VYNE's general and administrative expenses for the third quarter of 2025 were $2.7 million, a decrease of approximately $0.3 million, or 8.7%, compared to $3.0 million in the same quarter of 2024[14] - Total operating expenses for the three months ended September 30, 2025, were $7,961 million, down from $13,212 million in the same period of 2024, reflecting a decrease of 39.5%[23] - The operating loss for the three months ended September 30, 2025, was $(7,792) million, an improvement from $(13,091) million in the same period of 2024[23] - Net loss for the three months ended September 30, 2025, was $(7,280) million, compared to $(12,157) million in the same period of 2024, showing a reduction of 40.5%[23] - Loss per share from continuing operations for the three months ended September 30, 2025, was $(0.17), an improvement from $(0.29) in the same period of 2024[23] - Research and development expenses for the nine months ended September 30, 2025, totaled $16,260 million, down from $21,262 million in 2024, a decrease of 23.5%[23] - General and administrative expenses for the nine months ended September 30, 2025, were $8,710 million, compared to $10,022 million in 2024, reflecting a decrease of 13.1%[23] - Other income for the three months ended September 30, 2025, was $366 million, compared to $934 million in the same period of 2024[23] Clinical and Strategic Developments - VYNE is conducting a 12-week non-clinical toxicology study of VYN202 in dogs to address a partial hold on clinical trials for male subjects[3] - The strategic review initiated by VYNE's Board of Directors includes evaluating internal pipeline opportunities and potential strategic partnerships or acquisitions[4] - The Phase 1b trial of VYN202 in moderate-to-severe plaque psoriasis was placed on clinical hold by the FDA due to testicular toxicity observations, but the hold was lifted for female subjects[8] - VYNE is seeking a development and commercialization partner for the repibresib gel program, which is covered by patents providing exclusivity into at least 2042 in the U.S.[13] Share Information - Weighted average shares outstanding for the three months ended September 30, 2025, were 42,801 million, slightly up from 42,587 million in the same period of 2024[23]

Financial Position and Leverage - The Company has a leverage program consisting of $300 million under a revolving credit facility, $200 million under a senior secured revolving credit facility, and $325 million in senior unsecured notes maturing in 2026 and 2029, among other debt instruments [279]. - Total leverage outstanding as of September 30, 2025, was $1.05 billion, with available capacity of $466.1 million under the combined Leverage Program [344]. - The Company’s total debt, net of unamortized issuance costs, was $1.05 billion as of September 30, 2025 [344]. - The Company’s operating facility has a maturity date in 2029 with a rate of SOFR+2.00%, totaling $151.9 million [344]. - The company is subject to a minimum shareholders' equity requirement and must maintain a ratio of not less than 150% of total assets to total indebtedness [354]. - The company has received exemptive relief from the SEC, allowing it to exclude debt under the SBA Debentures from its asset coverage test, providing increased flexibility under the 150% asset coverage requirement [351]. - As of September 30, 2025, the company's asset coverage ratio was 177.8%, which is above the required minimum of 150% [350]. Investment Strategy and Portfolio - The Company’s investment strategy includes primarily debt investments in middle-market companies, with a focus on senior secured loans and mezzanine debt [277]. - As of September 30, 2025, the consolidated investment portfolio was valued at $1,716.7 million, with 89.7% invested in debt investments, primarily in senior secured debt [313]. - During the three months ended September 30, 2025, the company invested approximately $63.1 million, with 97.9% allocated to senior secured loans [309]. - For the nine months ended September 30, 2025, total investments amounted to approximately $240.6 million, with 93.3% in senior secured loans [311]. - The largest portfolio company investment based on fair value comprised approximately 6.5% of the total portfolio as of September 30, 2025 [313]. - As of September 30, 2025, the industry composition of the portfolio at fair value was led by Software (13.2%) and Internet Software and Services (12.8%) [315]. - As of September 30, 2025, 99.6% of investments were categorized as Level 3, indicating reliance on valuations by independent third-party sources [302]. - The average portfolio company investment at fair value was approximately $11.5 million as of September 30, 2025 [313]. Revenue and Income - The Company generated revenues primarily from interest on debt investments, with expected maturities generally between three to five years [286]. - Investment income for the three months ended September 30, 2025, was $50.5 million, a decrease from $70.9 million in the same period of 2024, primarily due to a decrease in portfolio size and lower SOFR rates [316]. - For the nine months ended September 30, 2025, investment income totaled $157.9 million, down from $198.2 million in 2024, reflecting similar factors as the quarterly results [317]. - Net investment income for the three months ended September 30, 2025, was $27.3 million, down from $33.9 million in 2024, reflecting decreased investment income [320]. - Adjusted net investment income for the nine months ended September 30, 2025, was $82.6 million, compared to $90.7 million for the same period in 2024, indicating a decline of about 8.5% [338]. Expenses and Losses - Total operating expenses for the three months ended September 30, 2025, were $23.2 million, a decrease from $37.1 million in 2024, mainly due to lower incentive fees and interest expenses [318]. - The net realized loss for the three months ended September 30, 2025, was $(97.0) million, compared to $(31.4) million in 2024, primarily due to losses from restructuring investments [322]. - The change in net unrealized appreciation for the three months ended September 30, 2025, was $94.1 million, significantly higher than $19.2 million in 2024, reflecting reversals of previously recognized losses [324]. - Incentive fees for the three months ended September 30, 2025, were $0.0 million, down from $6.5 million in 2024, due to not accruing incentive fees [328]. Shareholder Returns and Dividends - The company declared total dividends of $73.99 million for the nine months ended September 30, 2025, with a per share amount of $0.87 [360]. - A fourth quarter dividend of $0.25 per share was declared, payable on December 31, 2025, to shareholders of record as of December 17, 2025 [369]. - Approximately $2.5 million of cash distributions were reinvested through the new dividend reinvestment plan (DRIP) for the nine months ended September 30, 2025 [340]. - The company repurchased 69,446 shares at an average price of $6.68 per share under the Company Repurchase Plan, totaling $464,080 for the nine months ended September 30, 2025 [343]. - The Company repurchased 169,964 shares at a weighted average price of $5.80, totaling $977,677 from October 1, 2025, to November 5, 2025 [369]. Regulatory Compliance and Taxation - The Company is regulated as a RIC and must distribute at least 90% of its investment company taxable income to avoid corporate level taxes [278]. - The company has elected to be treated as a RIC and intends to distribute at least 90% of its investment company taxable income to shareholders, relieving it from U.S. federal income taxes [329]. - The company must distribute at least 90% of its ordinary income and short-term capital gains to maintain its RIC tax treatment [363]. Economic Sensitivity - The Company’s financial condition and results of operations are subject to various risks, including fluctuations in interest rates and changes in laws or regulations [276]. - A 300 basis point increase in interest rates could result in a net investment income increase of $38,613,665, equating to $0.45 per share [375]. - A 200 basis point increase in interest rates could result in a net investment income increase of $25,742,443, equating to $0.30 per share [375]. - A 100 basis point decrease in interest rates could result in a net investment income decrease of $12,871,222, equating to $(0.15) per share [375]. - A 300 basis point decrease in interest rates could result in a net investment income decrease of $35,520,589, equating to $(0.42) per share [375]. Mergers and Acquisitions - The Company entered into a Merger Agreement on September 6, 2023, resulting in the issuance of 27,823,870 shares of common stock to former BCIC shareholders [281][282]. - The merger with BCIC was completed on March 18, 2024, and was considered a tax-free reorganization, with BCIC's separate existence ceasing [331]. - The Company completed a merger with BCIC on March 18, 2024, which was accounted for as an asset acquisition, resulting in a purchase discount that was allocated to the cost basis of the BCIC investments acquired [336]. Cash Flow and Operating Activities - The net cash provided by operating activities for the nine months ended September 30, 2025, was $114.4 million, consisting of $59.5 million in net investment income and $54.8 million from the settlement of dispositions of investments [352]. - Net cash used by financing activities during the same period was $145.0 million, primarily due to $92.0 million in repayment of 2025 Notes and $74.0 million in dividends paid to common shareholders [353]. - The company has $61.0 million in cash and cash equivalents as of September 30, 2025 [353]. Specific Investments - The investment in Homerenew Buyer Inc. ("Renovo") is expected to be fully written down in Q4 2025, impacting the Company's NAV by approximately $0.15 per share [370]. - As of September 30, 2025, the value of the investment in Renovo represented about 0.7% of the Company's total investments at fair value [370]. - 94.2% of debt investments in the portfolio bore interest based on floating rates as of September 30, 2025 [372]. - The percentage of floating rate debt investments subject to an interest rate floor was 94.5% as of December 31, 2024 [372].

Financial Performance - Net sales for Q3 2025 decreased to $222.5 million, down 28.4% compared to Q3 2024, driven by declines in both retail and DTC sales within the Solo Stove segment [6]. - Gross profit for Q3 2025 was $31.8 million, or 60.0% of net sales, a decrease of 19.0% compared to the prior year [7]. - The net loss for Q3 2025 was $22.9 million, improving from a net loss of $111.5 million in the prior year [7]. - Adjusted EBITDA for Q3 2025 was $(5.1) million, compared to $6.5 million in the prior year period [7]. - Net sales for Q3 2025 were $53,038,000, a decrease of 43.7% compared to $94,139,000 in Q3 2024 [21]. - Gross profit for Q3 2025 was $31,846,000, down 19% from $39,319,000 in Q3 2024 [21]. - Net loss attributable to Solo Brands for Q3 2025 was $15,026,000, compared to a net loss of $69,864,000 in Q3 2024 [21]. - Total operating expenses for Q3 2025 were $48,023,000, significantly reduced from $154,605,000 in Q3 2024 [21]. - Segment EBITDA for Solo Stove in Q3 2025 was $1,363,000, a decline from $14,585,000 in Q3 2024 [23]. - The company reported a comprehensive loss of $22,919,000 for Q3 2025, compared to a comprehensive loss of $111,371,000 in Q3 2024 [21]. Cash Flow and Liquidity - Operating cash flow was $11 million in Q3 2025, marking the second consecutive quarter of positive cash generation [2]. - Cash and cash equivalents increased to $16.3 million as of September 30, 2025, up from $12.0 million at the end of 2024 [8]. - Cash and cash equivalents increased to $16,334,000 as of September 30, 2025, up from $11,980,000 at the end of 2024 [25]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $(53,019), significantly higher than $(2,470) in 2024 [27]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $66,775, compared to $6,812 in 2024, indicating a significant increase [27]. - The cash and cash equivalents balance at the end of the period for September 30, 2025, was $16,334, up from $12,494 in 2024, representing an increase of approximately 30.4% [27]. Inventory and Assets - Inventory was reduced to $84.8 million as of September 30, 2025, down from $108.6 million at the end of 2024 [9]. - Total assets decreased to $431,045,000 as of September 30, 2025, down from $495,060,000 at the end of 2024 [25]. - Inventory as of September 30, 2025, was $84,831,000, down from $108,575,000 at the end of 2024 [25]. Debt and Expenses - Long-term debt increased to $233,966,000 as of September 30, 2025, compared to $142,060,000 at the end of 2024 [25]. - SG&A expenses were reduced by 35.4% year-over-year, reflecting ongoing efficiency efforts [3]. - Interest expense for Q3 2025 was $7,556 thousand, up from $3,683 thousand in Q3 2024, indicating increased borrowing costs [44]. - Depreciation and amortization expense for Q3 2025 was $7,152 thousand, compared to $6,815 thousand in Q3 2024, reflecting higher asset depreciation [44]. - Business optimization and expansion expenses for Q3 2025 were $788 thousand, down from $2,776 thousand in Q3 2024, suggesting reduced spending in this area [44]. - Equity-based compensation expense for Q3 2025 was $861 thousand, compared to $1,859 thousand in Q3 2024, indicating a decrease in compensation-related costs [44]. Product Performance and Strategy - The initial response to new products, including the Summit 24" and Infinity Flame firepits, has been favorable, improving sales trends in October [4]. - The company aims to stabilize the business and strengthen its balance sheet for sustainable, profitable growth over time [4]. Year-to-Date Performance - Net income for the nine months ended September 30, 2025, was a loss of $62,270, compared to a loss of $121,974 in 2024, indicating an improvement of approximately 48.9% [27]. - Adjusted gross profit for the nine months ended September 30, 2025, was $131,870, down from $192,734 in 2024, reflecting a decrease of about 31.6% [42]. - Adjusted gross profit margin for the nine months ended September 30, 2025, was 59.3%, compared to 62.0% in 2024, showing a decline of 2.7 percentage points [42]. - Adjusted net income for Q3 2025 was $(11,862) thousand, compared to $1,449 thousand in Q3 2024, indicating a significant decline [43]. - Adjusted EBITDA for Q3 2025 was $(5,118) thousand, down from $6,499 thousand in Q3 2024, reflecting a decrease in operational performance [44]. - Net income margin for Q3 2025 was (43.2)%, compared to (118.4)% in Q3 2024, showing an improvement in loss percentage relative to net sales [44]. - Adjusted EBITDA margin for Q3 2025 was (9.6)%, down from 6.9% in Q3 2024, indicating a decline in profitability [44]. - Net income (loss) for the nine months ended September 30, 2025, was $(121,974) thousand, compared to $(62,270) thousand for the same period in 2024 [43]. - Adjusted net income (loss) attributable to Solo Brands, Inc. for Q3 2025 was $(7,058) thousand, compared to $1,063 thousand in Q3 2024 [43]. - Capital expenditures for patents, property, and equipment in the nine months ended September 30, 2025, totaled $(4,600), compared to $(6,898) in 2024, a decrease of approximately 33.3% [27]. - Inventory charges associated with restructuring and consolidation activities were $18,742 for the nine months ended September 30, 2024, with no such charges reported in 2025 [42]. - The company reported a loss on the disposition of the TerraFlame manufacturing operations amounting to $1,516 in the nine months ended September 30, 2025 [27].

Financial Performance - As of September 30, 2025, cash, cash equivalents, and marketable securities totaled approximately $563.3 million, up from $470.2 million at the end of 2024, reflecting a significant increase in liquidity[14][22]. - The net loss for Q3 2025 was $40.7 million, or $0.39 per share, compared to a net loss of $36.1 million, or $0.34 per share, in the previous quarter[16][21]. Research and Development - Research and development (R&D) expenses for Q3 2025 were $37.5 million, an increase of 11.5% from $33.6 million in the previous quarter, driven by clinical development activities for EDG-15400 and EDG-7500[15][21]. - The CIRRUS-HCM Phase 2 trial of EDG-7500 is ongoing, with a program update anticipated in Q4 2025 and comprehensive data expected in the first half of 2026[10]. - EDG-15400 is currently in a Phase 1 trial for heart failure, with topline results expected in the first half of 2026[11]. - The company is actively developing Phase 3 trial designs for HCM and Duchenne muscular dystrophy, with plans to meet with the FDA regarding these studies[8][18]. Clinical Trials - Enrollment in the MESA open-label extension trial for sevasemten in Becker muscular dystrophy reached 99% of eligible participants as of September 2025[4]. - The GRAND CANYON pivotal trial for sevasemten in Becker muscular dystrophy completed enrollment in February 2025, with 175 adults enrolled across 12 countries, and topline data expected in Q4 2026[5]. Community Engagement - Edgewise Therapeutics continues to engage with the scientific and patient communities through various congresses and educational events, enhancing its outreach efforts[13].