Financial Performance - Consolidated revenues decreased by 7% to $34.3 billion in fiscal 2025 compared to $36.8 billion in fiscal 2024[166] - Pre-tax income fell by 25% to $4.7 billion, with a pre-tax operating margin of 13.8% compared to 17.1% in the previous year[175] - Net sales orders decreased by 4% to 83,423 homes, with the value of net sales orders declining by 6% to $30.8 billion[175] - Home sales revenue fell to $31.4 billion (84,863 homes closed) in fiscal 2025, down from $33.9 billion (89,690 homes closed) in fiscal 2024, primarily due to a 5% decrease in closings volume and a 2% decrease in average selling price[190] - Pre-tax income decreased to $4.7 billion in fiscal 2025 from $6.3 billion in fiscal 2024, with contributions from homebuilding, rental, financial services, and Forestar businesses[246] Home Sales and Orders - Homes closed decreased by 5% to 84,863, with an average closing price of $370,400, down 2% from the prior year[175] - Home sales gross margin decreased to 21.5% from 23.5% due to increased sales incentives[168] - The average selling price of homes closed in fiscal 2025 was $370,400, a 2% decrease from $378,000 in fiscal 2024[190] - The cancellation rate for sales orders remained stable at 18% for fiscal 2025, consistent with the previous year[182] - Sales order backlog as of September 30, 2025, was 10,785 homes valued at $4.12 billion, representing an 11% decrease in homes and a 14% decrease in value compared to 2024[187] Regional Performance - Homebuilding revenues decreased by 3% in the Northwest region for fiscal 2025, generating pre-tax income of $395.7 million compared to $420.8 million in fiscal 2024[207] - Homebuilding revenues in the Southwest region decreased by 6% in fiscal 2025, with pre-tax income dropping to $517.1 million from $703.5 million in fiscal 2024[208] - The South Central region experienced a 10% decrease in homebuilding revenues, resulting in pre-tax income of $964.6 million, down from $1.3 billion in fiscal 2024[209] - Southeast region homebuilding revenues fell by 21% in fiscal 2025, with pre-tax income decreasing to $839.9 million from $1.4 billion in fiscal 2024[210] - The East region saw a slight increase of 1% in homebuilding revenues, generating pre-tax income of $834.0 million compared to $1.1 billion in fiscal 2024[212] - The North region reported a 15% increase in homebuilding revenues, with pre-tax income rising to $583.6 million from $498.4 million in fiscal 2024[213] Financial Services - Financial services revenues decreased by 5% to $841.2 million, with pre-tax income at $278.7 million compared to $311.2 million[179] - Total revenues from financial services decreased by 5% to $841.2 million in fiscal 2025 from $882.5 million in fiscal 2024[236] - Financial services pre-tax income decreased to $278.7 million in fiscal 2025 from $311.2 million in fiscal 2024, a decline of approximately 10%[236] - Other income from financial services operations fell by 12% to $88.9 million in fiscal 2025, down from $101.1 million in the prior year, primarily due to reduced interest income on loan origination volume[243] Inventory and Assets - Total homebuilding inventories as of September 30, 2025, amounted to $20.3 billion, compared to $20.0 billion in 2024[216] - Approximately 19,600 homes were unsold in inventory as of September 30, 2025, compared to 25,700 unsold homes in 2024[221] - The total remaining purchase price of lots controlled through land and lot purchase contracts was $26.0 billion as of September 30, 2025, up from $25.2 billion in 2024[219] - Forestar's inventory totaled $2.6 billion at September 30, 2025, an increase from $2.3 billion in 2024[232] Cash Flow and Financing - Cash provided by operating activities increased to $3.4 billion from $2.2 billion in fiscal 2024[167] - Net cash provided by operating activities was $3.4 billion, an increase from $2.2 billion in fiscal 2024, primarily driven by net income[285] - Net cash used in financing activities in fiscal 2025 was $4.8 billion, including $4.3 billion for share repurchases and $1.0 billion for repayment of homebuilding senior notes[289] - The company repurchased 30.7 million shares at a total cost of $4.3 billion during fiscal 2025, with $3.3 billion remaining under the stock repurchase authorization[263] Debt and Interest - Interest incurred increased 104% to $103.1 million in fiscal 2025 from $50.5 million in fiscal 2024, driven by a rise in the weighted average interest rate and a 33% increase in average debt[203] - The company had outstanding notes payable totaling $6.0 billion as of September 30, 2025, with $1.6 billion due within 12 months[252] - Forestar's ratio of debt to total capital increased to 31.2% at September 30, 2025, compared to 30.7% in the previous year[269] Tax and Legal Matters - The effective tax rate remained stable at 23.6% in fiscal 2025 compared to 23.5% in fiscal 2024, with income tax expenses of $1.1 billion and $1.5 billion, respectively[247] - The new law terminating the energy efficient home tax credit is expected to reduce tax benefits starting in fiscal 2026, with benefits of $39.5 million in fiscal 2025 compared to $70.4 million in 2024[249] - The company reported reserves for approximately 875 pending construction defect claims, with costs totaling $57.2 million for resolved claims during fiscal 2025[319] - The company has established reserves for legal claims, with approximately 98% related to construction defect matters as of September 30, 2025[318] Market Conditions and Future Outlook - The company plans to maintain elevated sales incentives to support demand based on market conditions and mortgage interest rates[168] - The company plans to maintain elevated incentive levels in fiscal 2026, depending on market conditions and mortgage interest rates[195] - The company is exposed to risks from adverse developments in capital markets, which could limit access to capital and impact liquidity[302] - The company is currently evaluating the impact of new accounting standards on its consolidated financial statements, effective in fiscal 2026 and 2028[323][324]

Revenue Recognition and Financial Performance - The company recognizes the majority of its revenues over time, which may lead to volatility in quarterly and annual results due to fluctuations in cost estimates [58]. - Material costs accounted for approximately 45% of the company's consolidated revenues for Fiscal 2025, indicating significant exposure to raw material price fluctuations [69]. - Revenues from international operations, including the U.K. and Canada, represented about 20% of consolidated revenues in Fiscal 2025, highlighting the company's global market presence [75]. - The company may experience adverse impacts on its business and results of operations due to quality problems with its products, which could harm its reputation [63]. - The company’s stock price could fluctuate significantly due to various factors, including market conditions and operational performance [85]. Risk Management and Operational Challenges - The company faces risks related to subcontractor performance, which could lead to project delays and additional costs [59]. - The company is exposed to potential credit risks due to payment arrangements that allow customers to defer payments until project milestones are met [73]. - The company’s operations may be adversely affected by global economic uncertainty, including fluctuations in demand for oil, gas, and electrical energy [68]. - The company may face limitations in accessing credit and capital markets, which could adversely affect liquidity, operations, and growth strategy [77]. - The company is involved in legal proceedings that could reduce profitability and liquidity, potentially harming its financial condition [90]. - The company may face challenges in obtaining necessary "conflict-free" metals due to limited suppliers, impacting production [89]. - Catastrophic events, including natural disasters and health epidemics, could disrupt operations and increase costs, particularly for facilities located near the Texas Gulf Coast [100]. Strategic Growth and Acquisitions - The company is pursuing growth and product diversification through strategic acquisitions, although this strategy involves risks such as management distraction and integration challenges [65]. Compliance and Regulatory Risks - The company is subject to various government regulations that could negatively impact operations, particularly in relation to environmental compliance and the use of certain chemicals [88]. - Changes in tax laws and regulations could materially affect the company's effective tax rate and financial results, particularly with the implementation of the OECD Pillar 2 provisions [92][93]. - The company is required to comply with Section 404 of the Sarbanes-Oxley Act, and any failures in internal controls over financial reporting could lead to a loss of investor confidence and negatively affect stock price [98]. - The company is subject to evolving laws and regulations regarding data privacy and cybersecurity, which could result in substantial costs and liabilities if not complied with [107][108]. Financial Health and Capital Management - The company’s credit agreement requires maintaining a consolidated net leverage ratio of less than 3.0 to 1.0 and an interest coverage ratio greater than 3.0 to 1.0, which could impact liquidity if not adhered to [72]. - The company’s ability to declare or pay future dividends is subject to capital availability and board determinations, which could affect stock price [86]. - The company carries insurance against various liabilities, but potential unidentified risks may leave it exposed to significant losses not covered by insurance [99]. Market and Economic Factors - The company is facing uncertainty regarding the future relationship between the U.S. and other countries concerning trade policies and tariffs, which could adversely impact business operations and margins [97]. - The company is exposed to market risks from fluctuations in commodity prices, foreign currency transactions, and interest rates, with a focus on managing these risks through hedging strategies [197][198][199]. - As of September 30, 2025, the company's accumulated other comprehensive loss was $27.0 million, an increase of $2.7 million from the previous year, primarily due to currency exchange rate fluctuations [200]. - The company has not experienced significant interest rate risk as there were no outstanding borrowings under its U.S. Revolver as of September 30, 2025 [201]. Human Resources and Intellectual Property - The departure of key personnel could disrupt business operations and negatively impact performance [114]. - The company’s success depends on its ability to protect intellectual property rights, which is costly and challenging, and failure to do so could harm its business [94][95]. Environmental, Social, and Governance (ESG) Considerations - Changes in ESG initiatives and climate change regulations may require additional expenditures and could adversely impact demand for the company's products [112][113].

Sales Performance - Water Flow Solutions accounted for approximately 58% of fiscal 2025 consolidated net sales, with net sales recognized at $824.9 million, $755.5 million, and $634.4 million for fiscal years 2025, 2024, and 2023 respectively[25][35] - Water Management Solutions represented about 42% of fiscal 2025 consolidated net sales, with net sales of $604.8 million, $559.2 million, and $641.3 million for fiscal years 2025, 2024, and 2023 respectively[26][37] - The company’s two largest distributors accounted for approximately 37%, 38%, and 35% of gross sales in fiscal years 2025, 2024, and 2023, respectively[48] - Seasonal demand affects net sales and operating income, with historically lower performance in the first and second fiscal quarters due to weather conditions impacting construction activity[47] - Approximately 5% of Water Flow Solutions' net sales were to Canadian customers in fiscal year 2025, compared to 6% in the previous two fiscal years[49] Operational Investments - The company plans to make disciplined investments to improve operational excellence and expand capabilities, aiming to drive sales growth and improve product margins[27] - Capital investments since 2018 have focused on modernizing manufacturing facilities, expanding domestic manufacturing capabilities, and accelerating new product development[28] - The new brass foundry in Decatur, Illinois is operational, replacing a legacy foundry built in the early 1900s, which is expected to enhance domestic manufacturing capabilities[28][43] - The company operates ten manufacturing facilities across the United States, Israel, and China, with plans to increase capital investments to expand production capacity[43][44] Backlog and Future Sales - Water Flow Solutions' backlog at the end of 2025 was $208.0 million, an increase from $199.0 million in 2024, while Water Management Solutions' backlog increased from $103.5 million in 2024 to $112.7 million in 2025[51] - Approximately 22% of Water Flow Solutions' backlog is expected to be shipped after 2026, while 4% of Water Management Solutions' backlog is anticipated to be shipped after 2026[51] - The company experienced an increase in overall backlog due to heightened demand for specialty valve and hydrant products compared to the prior year[51] Research and Development - R&D expenses were $19.9 million, $20.5 million, and $25.9 million during fiscal years 2025, 2024, and 2023, respectively[55] Workforce and Diversity - As of September 30, 2025, the company employed approximately 3,500 people, with 83% based in the United States[72] - The employee turnover rate in the United States for fiscal year 2025 was approximately 20%[72] - Approximately 42% of the United States workforce was represented by collective bargaining agreements as of September 30, 2025[72] - The company has successfully negotiated and extended several collective bargaining agreements, with expirations ranging from December 2025 to October 2027[74] - As of September 30, 2025, women and minorities represented 33% and 44% of the Board of Directors, respectively[65] Financial Management - Purchased components and raw materials accounted for approximately 35% and 8% of the cost of sales in 2025, respectively[45] - The company experienced approximately 3% inflation in 2025 compared to 2024, impacting product margins and profitability[239] - The principal financial instruments are cash and cash equivalents, which are not subject to material potential near-term losses[238] - The company manages market risks through established policies and procedures, including the use of foreign exchange contracts when appropriate[237] - The company monitors commodity price fluctuations and may adjust selling prices or implement supplier pricing agreements to manage risks[239] Environmental and Social Responsibility - The company’s environmental strategy includes reduction targets for key performance indicators such as GHG emissions and waste to landfill[59] - The company prioritizes employee engagement through programs like employee experience surveys and global quarterly town halls[71] Competitive Landscape - The competitive environment for water infrastructure products is mature, with strong brand recognition among established competitors[52] - The company will continue to seek acquisitions and investments in businesses and technologies to strengthen its competitive position and expand into new markets[33]

Financial Performance - For the three months ended March 31, 2025, the company generated revenues of $7,333,710, a decrease of 13.77% from $8,504,777 in the same period in 2024, primarily due to a decline in metal revenue[230][231] - Gross profit increased to $3,486,663 for the three months ended March 31, 2025, up 6.81% from $3,264,261 in the same period in 2024, attributed to improved margins on hauling and metal revenue[230][232] - Operating expenses rose by 21.27% to $7,368,170 for the three months ended March 31, 2025, compared to $6,075,985 in 2024, driven by increases in payroll, advertising, and depreciation expenses[230][233][234] - The loss from operations increased to $3,881,507 for the three months ended March 31, 2025, compared to $2,811,724 in the same period in 2024, reflecting higher operating expenses[230][235] - Net loss available to common stockholders was $7,665,703 for the three months ended March 31, 2025, a significant reduction of 77.09% from $33,460,778 in the same period in 2024[230][238] - Net cash used in operating activities was $4,161,414 for the three months ended March 31, 2025, compared to $3,460,823 in the same period in 2024, driven by a net loss of $4,665,739[239] - The company experienced a decrease in hauling costs, contributing to a reduction in the cost of revenues to $3,847,047 for the three months ended March 31, 2025, down from $5,240,516 in 2024[231][232] Cash Flow and Financing - Net cash provided by financing activities increased to $7,145,205 for the three months ended March 31, 2025, compared to $2,627,882 for the same period in 2024[241] - As of March 31, 2025, the company had cash on hand of $5,501,755 and a working capital deficit of $(7,478,957)[243] - The company raised approximately $4.0 million from a registered direct offering of 68,585 shares at $58.32 per share on January 13, 2025[247] - The company has no external sources of liquidity that could affect its financial condition or access to capital[242] - Additional debt financing may involve covenants that restrict operations or incur additional debt, impacting the company's ability to raise capital[244] Compliance and Regulatory Matters - The company received a notice from Nasdaq on May 23, 2025, for failing to file its Q1 10-Q, with a compliance deadline of November 17, 2025[248] - On August 20, 2025, the company executed a reverse stock split of 1-for-110 to regain compliance with Nasdaq's minimum bid price requirement[250] - The company intends to submit a plan to Nasdaq to regain compliance, but there is no assurance of acceptance[249] Operational Developments - The company expanded operations by opening a metal recycling facility in Cleveland, Ohio, as of the second quarter of 2023, enhancing its supply chain capabilities[226] - The company aims to open a facility with rail or deep-water port access to increase revenue and profitability by expanding the number of potential buyers for processed scrap products[219] - The company processes nonferrous metals and sells recovered catalytic converters from end-of-life vehicles, contributing to its diverse revenue streams[222] - The accumulated deficit as of March 31, 2025, was $(503,978,049), raising substantial doubt about the company's ability to continue as a going concern[243] - The company has entered into several material agreements during the most recent fiscal quarter[246]

Financial Performance - Revenues for fiscal year 2025 increased by 10% to $1,662.4 million compared to $1,509.4 million in fiscal year 2024[150]. - The average sales price per residential lot rose to $108,400 in fiscal 2025 from $96,600 in fiscal 2024, despite a decrease in total lots sold[151]. - The company sold 14,240 residential lots in fiscal 2025, down from 15,068 in fiscal 2024, with sales to D.R. Horton decreasing from 13,267 to 11,751 lots[153]. - Selling, general and administrative (SG&A) expenses increased to $154.4 million in fiscal 2025, representing 9.3% of revenues, up from 7.9% in fiscal 2024[159]. - In fiscal 2025, net cash used in operating activities was $197.7 million, compared to $158.4 million in fiscal 2024[180]. - Net cash provided by financing activities in fiscal 2025 was $92.5 million, significantly higher than $16.3 million in fiscal 2024, primarily due to the issuance of $500 million principal amount of 2033 notes[182]. Debt and Liquidity - The company maintained a strong liquidity position with $379.2 million in cash and cash equivalents and $588.9 million in available borrowing capacity as of September 30, 2025[166]. - The ratio of debt to total capital increased to 31.2% in fiscal 2025 from 30.7% in fiscal 2024, while the ratio of net debt to total capital rose to 19.3% from 12.4%[167]. - Interest incurred increased to $45.5 million in fiscal 2025 from $32.6 million in fiscal 2024, with capitalized interest representing 2.4% of total cost of sales[158]. - As of September 30, 2025, the company had a $640 million senior unsecured revolving credit facility, which was increased to $665 million after exercising the accordion feature[169]. - The company had no outstanding borrowings under the revolving credit facility as of September 30, 2025, with $51.1 million in letters of credit issued, resulting in an available capacity of $588.9 million[169]. - The company recognized a $1.2 million loss on extinguishment of debt related to the repurchase and redemption of its 2026 notes in fiscal 2025[172]. - The company had $300 million principal amount of 5.0% senior notes maturing March 1, 2028, with an annual effective interest rate of 5.2%[174]. - The company issued a note payable of $9.9 million in December 2023 for real estate acquisition, maturing in December 2025[178]. Strategic Focus - The company plans to remain disciplined in land investments and focus on managing lot sales pace and pricing to optimize returns[148]. - The company is positioned to consolidate market share in the lot development industry due to its national footprint and strategic relationship with D.R. Horton[148]. - The strategic relationship with D.R. Horton may impact customer relationships and potential benefits[199]. Compliance and Accounting Standards - The company was in compliance with all financial covenants associated with its revolving credit facility as of September 30, 2025[170]. - The company has an effective shelf registration statement for $750 million of equity securities, with $300 million reserved for sales under its at-the-market equity offering program[179]. - The FASB issued ASU 2023-09, effective for fiscal 2026, requiring disaggregated income tax disclosures[195]. - ASU 2024-03, effective for fiscal 2028 and interim periods in fiscal 2029, mandates expense disaggregation disclosures[196]. - The company is evaluating the impact of new accounting standards on its consolidated financial statements[195][196]. Risk Factors - Interest rate risk is monitored, with fixed rate debt totaling $300 million at 5.0%, $500 million at 6.5%, and $9.9 million at 4.0%[202]. - There is no exposure to foreign currency fluctuations or significant commodity price fluctuations[203][204]. - The company faces various risks including economic conditions, inflation, and supply shortages[199]. - The company is subject to risks from public health issues, natural disasters, and cybersecurity incidents[199]. - Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ significantly[197][198].

Financial Performance - Net sales for the three months ended September 30, 2025, were $7,024,027, a decrease of 7.57% compared to $7,602,249 for the same period in 2024[13] - Gross profit for the same period was $1,731,629, down from $1,980,807, reflecting a decrease of 12.54%[13] - The operating loss narrowed to $(88,463) for the three months ended September 30, 2025, compared to $(250,996) for the same period in 2024, indicating improved operational efficiency[13] - Net loss attributable to common stockholders was $(385,407) for the three months ended September 30, 2025, compared to $(534,386) in the prior year, a reduction of 28%[13] - Net loss for the quarter ended September 30, 2025, was $202,000 compared to a net loss of $367,000 for the same quarter in 2024, a decrease of $165,000[73] - Net loss attributable to common stockholders decreased by $149,000 to $385,000 for the quarter ended September 30, 2025[74] Cash and Liquidity - Cash and cash equivalents increased to $761,748 as of September 30, 2025, from $326,344 at June 30, 2025, representing a growth of 133.33%[10] - As of September 30, 2025, the company had $762,000 in cash and cash equivalents, an increase from $326,000 as of June 30, 2025[75] - Cash and cash equivalents increased by $435,000 to $812,000 as of September 30, 2025, compared to $377,000 as of June 30, 2025, with $607,000 provided from the line of credit[86] - Net working capital decreased from $718,110 as of June 30, 2025, to $592,564 as of September 30, 2025, reflecting ongoing liquidity challenges[30] - Working capital was $593,000 as of September 30, 2025, compared to $718,000 as of June 30, 2025[76] Assets and Liabilities - Total current assets rose to $9,018,155 as of September 30, 2025, compared to $8,954,185 at June 30, 2025, an increase of 0.71%[10] - Total liabilities decreased to $11,943,554 as of September 30, 2025, down from $12,176,738 at June 30, 2025, a reduction of 1.92%[10] - Trade accounts receivable decreased by approximately $80,000 or 2.9%, to $2,721,000 as of September 30, 2025, driven by reduced overall revenue and timing of collections[87] - Inventories decreased by $250,000 or 4.9%, to $4,824,000 as of September 30, 2025, due to adjustments in inventory management in response to the uncertain operating environment[88] - Accounts payable decreased by approximately $236,000 or 6.9%, to $3,168,000 as of September 30, 2025, primarily due to timing of payments[89] - The outstanding balance of the line of credit was $2,604,000 as of September 30, 2025, compared to $1,997,000 as of June 30, 2025[90] - Finance lease liability totaled approximately $1,350,000 as of September 30, 2025, with lease payments currently around $33,000 per month[91] - Operating lease liability decreased to approximately $2,948,000 as of September 30, 2025, from $3,205,000 as of June 30, 2025[92] Operational Changes and Strategies - The Company is transitioning production from a contract manufacturer to internal operations to reduce costs and improve quality control[31] - The Company is actively working to mitigate potential tariff-related costs by stocking adequate inventory of key products[33] - The Company is evaluating strategic actions to improve performance, including cost reduction initiatives and pursuing new revenue streams through product diversification[31] - The company is implementing a comprehensive plan to address challenges, including cost reduction initiatives and transitioning production in-house[77] - The company believes that successful implementation of strategic actions may mitigate substantial doubt regarding its ability to continue as a going concern[77] Dividends and Stock - Preferred stock dividends issued or to be issued amounted to $183,550 for the three months ended September 30, 2025, compared to $167,738 in the prior year, reflecting an increase of 9.99%[18] - The Company paid $183,550 in preferred stock dividends by issuing 2,557,952 shares of common stock during the three months ended September 30, 2025[45] - The Company has a stock repurchase plan with approximately $449,000 remaining as of September 30, 2025, with no purchases made since September 2011[95] Tax and Valuation - The Company recorded a full valuation allowance against its net deferred income tax assets as of September 30, 2025, indicating uncertainty in realizability[94]

Financial Performance - Q3 FY26 net sales reached $15.1 billion, a 7% increase compared to Q3 FY25[1] - Consolidated comparable sales for Q3 FY26 increased by 5%, exceeding the company's plan[4] - Q3 FY26 diluted earnings per share were $1.28, up 12% from $1.14 in Q3 FY25[1] - For the first nine months of FY26, net sales totaled $42.6 billion, a 7% increase year-over-year[2] - Net sales for the thirteen weeks ended November 1, 2025, were $15,117 million, an increase of 7.5% compared to $14,063 million for the same period in 2024[32] - Net income for the thirty-nine weeks ended November 1, 2025, was $3,721 million, up from $3,466 million for the same period in 2024, representing an increase of 7.3%[32] - Diluted earnings per share for the thirteen weeks ended November 1, 2025, were $1.28, compared to $1.14 for the same period in 2024, reflecting a growth of 12.3%[32] Shareholder Returns - The company returned $1.1 billion to shareholders in Q3 FY26 through share repurchases and dividends[11] - The company returned $1.1 billion to shareholders during the third quarter, including $594 million for repurchasing 4.2 million shares and $472 million in dividends[40] - The company plans to repurchase approximately $2.5 billion of its stock during the fiscal year ending January 31, 2026[13] - The company has approximately $1.9 billion available for stock repurchase as of November 1, 2025, under its new stock repurchase program[40] Inventory and Assets - Total inventories as of November 1, 2025, were $9.4 billion, an increase of 12% from the previous year[10] - Merchandise inventories increased to $9,353 million as of November 1, 2025, from $8,371 million as of November 2, 2024, marking a rise of 11.7%[34] - Total assets as of November 1, 2025, were $35,188 million, an increase from $32,436 million as of November 2, 2024, indicating a growth of 8.6%[34] Profitability - The pretax profit margin for Q3 FY26 was 12.7%, 0.4 percentage points higher than the previous year[7] - Segment profit for Marmaxx in the United States was $1,350 million for the thirteen weeks ended November 1, 2025, compared to $1,207 million for the same period in 2024, a growth of 11.8%[39] Future Outlook - For Q4 FY26, the company expects consolidated comparable sales to increase by 2% to 3%[15] - The full year FY26 guidance includes a projected 4% increase in consolidated comparable sales and diluted EPS in the range of $4.63 to $4.66[16] - The company anticipates continued growth in operating and financial performance, despite potential risks including competition and economic conditions[28] Cash Position - Cash and cash equivalents at the end of the period were $4,640 million, down from $4,718 million at the end of the same period last year, a decrease of 1.7%[36]

Financial Performance - Q3 comparable brand revenue increased by 4.0%, with an operating margin of 17.0% and diluted EPS of $1.96, reflecting a 4.8% year-over-year growth [2] - The company raised its full-year operating margin guidance to a range of 17.8% to 18.1% [12] - Gross margin improved to 46.1%, up 70 basis points year-over-year, driven by higher merchandise margins and supply chain efficiencies [6] - Q3 2025 net revenues reached $1,882,814, a 4.0% increase from Q3 2024's $1,800,668 [20] - Net earnings for the thirty-nine weeks ended November 2, 2025, were $720,417, slightly up from $714,533 in the same period last year [27] Expenses and Liabilities - Selling, general and administrative (SG&A) expenses increased by 7.0% year-over-year to $549 million, with an SG&A rate of 29.1% [6] - Total liabilities increased to $3,243,423 from $3,159,188 in the previous quarter [23] - Operating lease liabilities decreased to $220,239 from $234,180 in the previous quarter [23] Inventory and Cash Flow - Merchandise inventories rose by 9.6% year-over-year to $1.5 billion, influenced by incremental tariff costs and strategic pull forward of receipts [6] - Merchandise inventories rose to $1,530,896 from $1,332,429 in the previous quarter [23] - Cash and cash equivalents at the end of the period were $884,663, down from $1,212,977 at the beginning of the period [27] - The company maintained a strong liquidity position with $885 million in cash and $316 million in operating cash flow, returning $347 million to stockholders through stock repurchases and dividends [6] Stock Repurchase and Authorizations - A new stock repurchase authorization of $1 billion was approved, effective once the current authorization is fully utilized [5] - The company repurchased common stock worth $555,703 during the financing activities [27] Future Outlook - The company expects annual net revenues for fiscal 2025 to grow between 0.5% and 3.5%, with comparable sales in the range of 2.0% to 5.0% [12] - Long-term expectations include mid-to-high single-digit annual net revenue growth and operating margins in the mid-to-high teens [12] Market Performance - Pottery Barn's comparable brand revenue grew by 1.3% in Q3 2025, while West Elm saw a 3.3% increase [20] - The number of retail stores increased to 513, with 5 openings and 1 closure during the quarter [25] Strategic Focus - The company continues to prioritize innovation, product design, and exceptional customer service to capture additional market share [3]

Financial Performance - For the three months ended September 30, 2025, net revenue was $0.9 million, a decrease from $1.4 million for the same period in 2024[14] - The company reported a net loss from continuing operations of $6.8 million, or $(0.16) per share, compared to a net loss of $5.0 million, or $(0.26) per share, for the same period in 2024[19] - Revenues for the three months ended September 30, 2025, were $883,000, a decrease of 37.6% compared to $1,416,000 for the same period in 2024[30] - Gross profit for the same period was a loss of $123,000, compared to a gross profit of $215,000 in the prior year[30] - The net loss for the three months ended September 30, 2025, was $6,839,000, compared to a net loss of $6,587,000 for the same period in 2024[30] - Adjusted EBITDA from continuing operations for the three months ended September 30, 2025, was a loss of $2,507,000, slightly improved from a loss of $2,558,000 in 2024[38] Cash and Expenses - Cash and cash equivalents as of September 30, 2025, were $405,000, down from $678,000 at December 31, 2024[20] - Cash and cash equivalents at the end of the period were $405,000, down from $501,000 at the end of the same period last year[33] - The company reported a net cash used in operating activities of $7,114,000 for the nine months ended September 30, 2025, compared to $14,020,000 for the same period in 2024[32] - General and administration expenses decreased to $4.6 million for the three months ended September 30, 2025, from $6.6 million in the same period in 2024[17] - Research and development costs significantly decreased to $6,000 for the three months ended September 30, 2025, compared to $122,000 for the same period in 2024[18] - Total operating expenses decreased to $4,641,000 from $6,695,000, representing a reduction of 30.6% year-over-year[30] - The company incurred interest expense of $1,549,000 for the three months ended September 30, 2025, compared to $993,000 in the prior year[30] - Total stockholders' equity decreased to $6,861,000 from $7,353,000 year-over-year[28] - The company recognized a debt extinguishment gain of $220,000 during the three months ended September 30, 2025[30] Strategic Initiatives and Developments - The company is in discussions for strategic initiatives, including a $50 million Crown Medical collections initiative and the commercialization of the BE-Smart™ Esophageal Cancer Test[1] - The BE-Smart™ test has received validation from a Mayo Clinic study, confirming its accuracy in Barrett's esophagus risk detection[6] - ProPhase Labs has outlined a 12-month commercialization roadmap for BE-Smart™, with multiple partnership inquiries received following its validation[10] - The company anticipates meaningful settlements from Crown Medical Collections within the next few months, which could provide substantial non-dilutive capital[5] - Nebula Genomics has become profitable on a pro-forma basis, contributing to the company's overall value[7]

Financial Performance - For Q3 2025, sales increased to $416,956, a 28.1% rise from $325,299 in Q3 2024[12] - Gross profit for Q3 2025 was $198,499, representing a 37.4% increase compared to $144,467 in Q3 2024[12] - The net income attributable to common stockholders for Q3 2025 was $16,778,276, compared to $122,397 in Q3 2024, marking a substantial increase[12] - The company reported a loss from operations of $1,098,475 for Q3 2025, compared to a loss of $839,632 in Q3 2024[12] - Loss from continuing operations decreased to $(1,313,172) in 2025 from $(2,016,109) in 2024, showing an improvement[14] - Net income from discontinued operations increased significantly to $17,385,939 in 2025 compared to $2,238,934 in 2024[14] Assets and Liabilities - The total assets as of September 30, 2025, were $47,677,690, up from $25,280,215 as of December 31, 2024[10] - Current liabilities increased to $8,414,058 as of September 30, 2025, compared to $3,546,149 at the end of 2024[10] Cash Flow and Investments - Net cash provided by (used in) operating activities was $(555,823) in 2025, a decline from $552,590 in 2024[14] - Cash and cash equivalents at the end of the period decreased to $284,714 in 2025 from $513,718 in 2024[14] - Capital expenditures were minimal at $(128) in 2025, compared to $(2,149) in 2024[14] - Cash used in investing activities of discontinued operations was $(787,129) in 2025, down from $(1,113,859) in 2024[14] Strategic Initiatives - The company plans to strategically invest in high-growth areas such as GPU Infrastructure-as-a-Service (IaaS), AI-driven software applications, and cybersecurity[6] - The Nexxis subsidiary continues to perform well, providing a stable, recurring revenue base that supports broader strategic objectives[3] - The company aims to leverage its expertise and financial strength to identify opportunities that align with its core competencies for sustainable results[3] Discontinued Operations - Net proceeds from the sale of discontinued operations amounted to $35,634,291 in 2025, with no comparable figure in 2024[14] - The company reported a significant gain on the sale of discontinued operations of $(17,471,290) in 2025, with no prior year figure[14] Other Financial Metrics - Stock-based compensation increased to $1,005,830 in 2025 from $564,800 in 2024, indicating higher employee incentives[14] - The effect of exchange rate changes on cash resulted in an increase of $9,950 in 2025, with no prior year figure reported[14]