Financial Performance - Total revenue for Q3 2025 was $901.2 million, a 2.5% increase from $875.8 million in Q3 2024[14] - Subscription and services revenue increased to $598.7 million, up 5.1% from $568.2 million year-over-year[14] - Net income for Q3 2025 was $111.5 million, compared to $40.6 million in Q3 2024, representing a significant increase of 174.6%[14] - Gross margin improved to $621.1 million in Q3 2025, compared to $575.6 million in Q3 2024, reflecting a gross margin percentage increase[14] - For the first three quarters ended October 3, 2025, Trimble Inc. reported a net income of $267.4 million, a decrease of 81.1% compared to $1,414.2 million in the same period of 2024[22] - The company experienced a net cash provided by operating activities of $225.9 million for the first three quarters of 2025, down from $416.3 million in 2024[22] - The company had a comprehensive income of $389.5 million for the first three quarters of 2025, compared to a comprehensive income of $27.8 million in 2024[22] - Operating income for the first three quarters of 2025 was $765.5 million, compared to $739.8 million in the first three quarters of 2024, reflecting a 3.5% year-over-year growth[57] - For Q3 2025, the net income was $111.5 million, a significant increase from $40.6 million in Q3 2024, resulting in basic earnings per share of $0.47 compared to $0.17 in the prior year[69] Expenses and Investments - Research and development expenses were $152.9 million, slightly down from $155.6 million in Q3 2024[14] - The company plans to continue investing in research and development to introduce new products and enhance market solutions[5] - The company recorded a depreciation and amortization expense of $149.3 million for the first three quarters of 2025, down from $179.2 million in 2024[22] - Stock-based compensation expense of $111.1 million for the first three quarters of 2025, slightly up from $110.3 million in 2024[22] Cash and Debt - The company reported cash and cash equivalents of $232.7 million as of Q3 2025, a decrease from $738.8 million at year-end 2024[12] - Long-term debt remained stable at $1,391.8 million, compared to $1,390.6 million at year-end 2024[12] - Total outstanding debt as of the third quarter of 2025 was $1,391.8 million, slightly up from $1,390.6 million at the end of 2024[58] - The company had no amounts outstanding under its $1.25 billion revolving credit facility at the end of the third quarter of 2025[60] Equity and Stock Repurchase - Trimble Inc. reported a total stockholders' equity of $5,790.0 million as of October 3, 2025, an increase from $5,745.3 million at the beginning of the year[18] - Stock repurchases amounted to $727.4 million in the first three quarters of 2025, compared to $175.0 million in the same period of 2024[22] - In Q1 2025, the Board of Directors approved a new stock repurchase program authorizing up to $1.0 billion, replacing the previous program from 2024[33] - As of the end of Q3 2025, remaining authorized funds for stock repurchase amounted to $272.6 million, with approximately 0.6 million shares repurchased in Q3 2025 at an average price of $80.88 per share[34][35] Asset Management - Total assets decreased to $9,019.6 million from $9,488.3 million at year-end 2024[12] - Total inventories decreased from $194.3 million at year-end 2024 to $174.7 million by Q3 2025, with finished goods inventory at $105.5 million[51] - The company had cash and cash equivalents of $232.7 million at the end of the period, a decrease from $1,054.0 million at the end of the previous year[22] - Goodwill increased to $5,237.1 million by the end of Q3 2025, reflecting foreign currency translation and adjustments[50] Revenue Recognition and Deferred Revenue - The company recognized $140.0 million in revenue from prior year deferred revenue during the third quarter of 2025[66] - At the end of the third quarter of 2025, approximately $1.7 billion of revenue is expected to be recognized from remaining performance obligations, with $1.2 billion (69%) expected to be recognized in the next 12 months[67] - Deferred revenue at the end of the third quarter of 2025 was $841.6 million, compared to $757.2 million at the end of the third quarter of 2024[66] Taxation - The effective income tax rate for Q3 2025 was 10.9%, down from 44.5% in Q3 2024, primarily due to disallowed losses related to the Mobility divestiture[70] - The effective income tax rate for the first three quarters of 2025 was 17.7%, down from 25.9% in the same period of 2024, influenced by gains from the Ag divestiture[70] - Unrecognized tax benefits at the end of Q3 2025 amounted to $42.2 million, which could positively impact future effective income tax rates if recognized[71] - The OBBBA legislation is expected to result in cash tax reductions of approximately $32 million in 2025 and $80 million in subsequent years[72] - The company accrued interest and penalties of $9.6 million related to tax benefits at the end of Q3 2025[71] Business Strategy and Market Position - The Connect & Scale strategy is expected to enhance business visibility and recurring revenue over time[5] - The company’s reportable segments include AECO, Field Systems, and Transportation and Logistics, with performance evaluated based on segment revenue and operating income[52][54] - North America accounted for $528.6 million of total segment revenue in the third quarter of 2025, representing a 0.8% increase from $524.5 million in the third quarter of 2024[57] Foreign Currency and Interest Rates - In Q3 2025, revenue was positively impacted by $8.5 million due to foreign currency fluctuations, while operating income was negatively impacted by $1.5 million[143] - The company uses foreign currency forward contracts to hedge against exchange rate fluctuations, with a nominal amount of purchased contracts at $343.5 million at the end of Q3 2025[145] - The company does not anticipate any material effect on its portfolio due to fluctuations in interest rates, as cash equivalents are primarily in interest-bearing deposits[140] Divestitures - The Mobility business was sold to Platform Science for equity interests valued at $253.9 million, resulting in a cumulative pre-tax loss of $30.6 million from the held for sale date to the closing date[38][39] - The Ag business was sold to AGCO for $1.9 billion in cash and an equity interest in a joint venture valued at $275.6 million, resulting in a pre-tax gain of $1.7 billion[41][42] - The company’s equity investment in Platform Science was valued at $253.9 million at the end of Q3 2025, representing a 32.5% ownership interest[48]

Revenue Performance - LNG Product revenue increased by $3.27 million, or 22.9%, to $17.53 million for the three months ended September 30, 2025, compared to $14.26 million for the same period in 2024[95] - Total revenues for the current quarter were $20.33 million, reflecting a $2.70 million, or 15.3%, increase from $17.63 million in the prior year quarter[95] - Total revenues for the nine months ended September 30, 2025, decreased by $1.0 million, or 2%, to $54.972 million compared to $55.995 million in the prior year[108] - LNG product revenues increased by $1.805 million, or 4.1%, to $46.1 million, while rental and service revenues decreased by 22.8% and 22.3%, respectively[107] Expenses and Income - Cost of revenues rose by $2.1 million, or 17%, to $14.72 million, maintaining 72% of total revenue for both quarters[96] - Net income for the current quarter was $1.12 million, a 12.2% increase from $0.997 million in the prior year quarter[95] - Operating expenses increased by $2.462 million, or 4.5%, totaling $56.708 million, with selling, general, and administrative expenses rising by $1.025 million, or 10.4%[107] - Net income for the nine months ended September 30, 2025, was a loss of $1.092 million, compared to a net income of $2.493 million in the prior year[107] - Selling, general and administrative expenses decreased by $0.3 million, primarily due to lower compensation expenses[99] - The company experienced a decrease in net equity income from foreign joint ventures by $0.2 million due to reduced profits[102] Financing and Investments - The company executed a 10-year bunkering agreement to supply LNG and develop a new 350,000 gallon-per-day liquefaction facility in Galveston, Texas[89] - The company is pursuing financing for the Galveston LNG facility, with no guarantee of successful completion by the required timeframe[89] - Capital expenditures for the nine months ended September 30, 2025, were $5.0 million, primarily for the Galveston expansion and upgrades to existing assets[127] - The company executed a 10-year bunkering agreement to supply LNG for a new 350,000 gallon-per-day liquefaction facility in Galveston, Texas, with project financing to be finalized by Q1 2026[128] Cash Flow and Financial Position - Cash provided by operating activities was $7.934 million, down from $11.522 million in the prior year, a decrease of $3.588 million[123] - As of September 30, 2025, the company had $10.3 million in cash and cash equivalents and $9.5 million in outstanding debt[120] - The company had no off-balance sheet arrangements that could materially affect its financial position as of September 30, 2025[129] Accounting and Reporting - The Company has prepared its financial statements in accordance with U.S. GAAP, requiring estimates and assumptions that impact reported amounts of assets and liabilities[130] - There have been no significant changes in the Company's "Critical Accounting Policies and Estimates" during the three and nine months ended September 30, 2025, compared to the previous year[130] - The Company is classified as a "smaller reporting company" and is not required to provide quantitative and qualitative disclosures about market risk[131] Derivatives and Losses - The company reported an unrealized loss of $19,000 on natural gas derivatives in the current quarter, compared to a loss of $13,000 in the prior year quarter[99]

Revenue Performance - Total revenue for the three months ended September 30, 2025, was $87,767 thousand, consistent with the prior year, while revenue for the nine months was $262,626 thousand, a slight decrease of $0.8 million compared to the previous year[113][114]. - Corporate revenue increased by $3.2 million or 6% for the three months ended September 30, 2025, while SoHo revenue decreased by $3.2 million or 9%[114]. - Total revenues for the three months ended September 30, 2025, were $87.767 million, consistent with $87.753 million in 2024, while revenues for the nine months ended September 30, 2025, decreased slightly to $262.626 million from $263.399 million in 2024[113]. Customer Metrics - Average Revenue per Customer Account (ARPA) for Corporate was $293.12 for the three months ended September 30, 2025, down from $310.13 in 2024, while consolidated ARPA increased to $39.79 from $36.19[109]. - The total number of customer accounts decreased to 726 thousand as of September 30, 2025, down from 799 thousand in the prior year[109]. - Monthly churn rate for Corporate customers increased to 3.47% for the three months ended September 30, 2025, compared to 2.61% in 2024[109]. - The company serves approximately 726 thousand customers across 41 countries, with top 10 customers contributing about 9% of total revenues[105]. Expenses and Costs - Cost of revenues for the three months ended September 30, 2025, was $17,520 thousand, a decrease of 1% from the prior year, while for the nine months, it increased by 3% to $53,214 thousand[115][116]. - Sales and marketing expenses for the three months ended September 30, 2025, were $13,006 thousand, a 4% increase from the prior year, and for the nine months, they rose to $38,246 thousand, also a 4% increase[118][120]. - Research, development, and engineering costs for Q3 2025 were $1,950,000, a decrease of 4% compared to Q3 2024, and for the nine months ended September 30, 2025, costs were $5,406,000, down 3% year-over-year[121][122]. - General and administrative expenses for Q3 2025 were $17,361,000, an increase of 1% from Q3 2024, while for the nine months ended September 30, 2025, expenses decreased by 4% to $51,284,000[123][125]. - Share-based compensation for Q3 2025 totaled $3,966,000, up from $3,422,000 in Q3 2024, and for the nine months ended September 30, 2025, it was $12,437,000 compared to $11,610,000 in the prior year[126]. Financial Position - Cash and cash equivalents as of September 30, 2025, were $97,600,000, significantly up from $33,500,000 as of December 31, 2024[135]. - The company entered into a $75,000,000 revolving credit facility and a $150,000,000 delayed-draw term loan facility as part of the 2025 Credit Agreement[136]. - As of September 30, 2025, the company had $582,400,000 in outstanding debt and total minimum lease payments of $15,200,000[137]. Cash Flow - Net cash provided by operating activities for the nine months ended September 30, 2025, was $120,900,000, an increase from $110,600,000 in the prior year[142]. - Net cash used in investing activities increased to $27.3 million for the nine months ended September 30, 2025, compared to $25.5 million in 2024, primarily due to investments made in the current period[143]. - Net cash used in financing activities decreased significantly to $33.1 million for the nine months ended September 30, 2025, from $116.8 million in 2024, mainly due to reduced cash outflows related to debt repurchases[144]. Taxation - The effective tax rate for Q3 2025 was 26.3%, up from 22.5% in Q3 2024, primarily due to changes in the geographical mix of income and an increase in the officer's compensation limitation[133]. - The provision for income taxes was $7.9 million for the three months ended September 30, 2025, compared to $6.1 million for the same period in 2024[132].

Revenue and Sales Performance - Total revenue increased by $2.0 million, or 16.3%, from $12.1 million in Q3 2024 to $14.1 million in Q3 2025, driven by a $2.2 million increase in product sales[78] - Product sales accounted for 90% of total revenue in Q3 2025, up from 86% in Q3 2024[76] - Total revenue increased by $3.2 million, or 8.7%, from $37.2 million in the nine months ended September 30, 2024, to $40.4 million in the same period of 2025[93] - Product sales revenue increased by $3.6 million, or 11.6%, from $31.2 million in the nine months ended September 30, 2024, to $34.8 million in the same period of 2025[91] Income and Profitability - Adjusted net income for Q3 2025 was $1.5 million, compared to a loss of $1.8 million in Q3 2024[75] - The net loss for the nine months ended September 30, 2025, was $1.8 million, an increase from a net loss of $0.4 million in the same period of 2024[109][110] Expenses - Research and development expenses increased by $0.2 million, or 5.9%, to $3.6 million in Q3 2025, representing 25% of total revenue[84] - General and administrative expenses rose by $0.3 million, or 9.7%, to $3.7 million in Q3 2025, accounting for 26% of total revenue[85] - Sales and marketing expenses increased by $0.2 million, or 12.0%, from $1.3 million in Q3 2024 to $1.5 million in Q3 2025[86] - Research and development expenses increased by $0.3 million, or 2.5%, from $10.3 million in the nine months ended September 30, 2024, to $10.5 million in the same period of 2025[99] - General and administrative expenses increased by $0.5 million, or 4.9%, from $10.7 million in the nine months ended September 30, 2024, to $11.2 million in the same period of 2025[100] Margins and Cost - Gross margin improved from 49.2% in Q3 2024 to 51.3% in Q3 2025 due to better yields and fabrication facility utilization[82] - Gross margin decreased from 52.0% in the nine months ended September 30, 2024, to 51.3% in the same period of 2025[96] - Cost of product sales increased by $0.9 million, or 15.2%, from $5.8 million in Q3 2024 to $6.6 million in Q3 2025[80] Cash Flow and Financial Position - Cash provided by operating activities was $7.3 million for the nine months ended September 30, 2025, compared to $3.3 million for the same period in 2024[108] - As of September 30, 2025, the company had $45.3 million in cash and cash equivalents, up from $42.1 million as of December 31, 2024[105] - Cash provided by operating activities for the nine months ended September 30, 2025, was $7.3 million, compared to $3.3 million for the same period in 2024, representing a 121.2% increase[109][110] - Cash used in investing activities during the nine months ended September 30, 2025, was $4.7 million, significantly higher than $1.3 million in 2024, primarily due to $3.2 million in manufacturing equipment purchases[111] - Cash provided by financing activities for the nine months ended September 30, 2025, was $0.6 million, slightly lower than $0.7 million in 2024[112][113] Other Income and Revenue Streams - Licensing, royalty, patent, and other revenue decreased by $0.3 million, or 17.0%, from $1.7 million in Q3 2024 to $1.4 million in Q3 2025[79] - Interest income decreased by $31,000, or 6.7%, from $0.5 million in Q3 2024 to $0.4 million in Q3 2025, primarily due to a decrease in interest rates[87] - Other income, net decreased by $2.8 million, or 70.4%, from $3.9 million in Q3 2024 to $1.2 million in Q3 2025, related to a strategic award for manufacturing services[88] Operational Insights - The company maintains a direct selling relationship with key customers and organizes its sales team into three primary regions: North America, EMEA, and APAC[78] - The company is a leading supplier of discrete MRAM components and has over 15 years of MRAM technology and manufacturing leadership[71] Changes in Assets and Liabilities - The change in net operating assets and liabilities for the nine months ended September 30, 2025, included a decrease in accounts receivable of $3.0 million and an increase in inventory of $2.7 million[109] - The increase in deferred revenue for the nine months ended September 30, 2025, was $0.9 million, indicating growth in future revenue recognition[109] - The company reported an increase in accrued liabilities of $0.5 million and contract obligations of $0.5 million during the nine months ended September 30, 2025[109] Accounting Policies - There were no changes to critical accounting policies and estimates that materially impacted the condensed financial statements[116] - The company continues to prepare its financial statements in accordance with GAAP, relying on historical experience and reasonable assumptions[114][115]

Financial Performance - Core business revenue for Q3 2025 was $6.4 million, a 21% decrease from $8.1 million in Q3 2024[5] - Total revenue for Q3 2025 was $6.8 million, down 16% from $8.2 million in Q3 2024[5] - Gross margin for Q3 2025 was $5.2 million, representing a 77% gross margin; Non-GAAP adjusted gross margin was 81%[5] - 2025 revenue guidance for core business revenue is expected to be flat to a 10% decline compared to 2024[10] - SPL Program-related revenue is projected to be approximately $5 million for the year[10] Client and Market Development - The company added one new Strategic Platform License (SPL) client, bringing the total number of SPL agreements to 32[5] - The installed base of instruments increased to 830 in Q3 2025, up from 739 in Q3 2024[7] - Core revenue generated by SPL clients accounted for 53% of total core revenue in both Q3 2025 and Q3 2024[7] Financial Position - Cash, cash equivalents, and investments totaled $158.0 million as of September 30, 2025[5] Operational Changes - The company is undergoing an operational restructuring, which is expected to impact near-term cash utilization[8]

Financial Performance - Revenue from contracts with collaborators for Q3 2025 was $13.3 million, compared to $9.5 million for the same period in 2024, representing a 40% increase[12] - Net loss for Q3 2025 was $48.2 million, or $0.21 basic net loss per share, compared to a net loss of $30.8 million, or $0.14 basic net loss per share in Q3 2024[12] - General and Administrative (G&A) expenses for Q3 2025 were $9.4 million, compared to $8.5 million in Q3 2024, reflecting a 10.6% increase[12] - Research and Development (R&D) expenses for Q3 2025 were $45.5 million, up from $34.9 million in Q3 2024, indicating a 30% increase[12] - Total liabilities as of September 30, 2025, were $291.2 million, compared to $285.8 million at the end of 2024[17] - The accumulated deficit increased to $1.39 billion as of September 30, 2025, from $1.27 billion at the end of 2024[17] Cash and Securities - Cash, cash equivalents, and marketable securities totaled $180.2 million as of September 30, 2025[12] Clinical Trials - The PROSERA Phase 3 Study completed enrollment with 390 PAH patients, with topline results expected in February 2026[5] - The SERANATA Phase 3 Study for PH-ILD patients activated its first clinical site in Q4 2025, aiming to enroll approximately 480 patients[8] Strategic Agreements - A strategic option agreement was entered to acquire Respira Therapeutics Inc., with the option to issue 1.5 million shares of Gossamer Bio common stock[8]

Financial Performance - For the three months ended September 30, 2025, the net loss was $48.2 million, compared to $30.8 million for the same period in 2024, representing a 56.5% increase in losses [122]. - For the nine months ended September 30, 2025, the net loss was $123.1 million, compared to $23.5 million for the same period in 2024, indicating a significant increase in losses [122]. - The net loss for the three months ended September 30, 2025, was $48.2 million, compared to a net loss of $30.8 million in 2024, reflecting a 57% increase in losses [140]. - As of September 30, 2025, the accumulated deficit was $1,391.7 million, indicating significant ongoing operating losses [150]. Revenue and Expenses - Total revenue for the three months ended September 30, 2025, was $13.3 million, an increase of 40.3% from $9.5 million in the same period of 2024 [140]. - For the nine months ended September 30, 2025, total revenue was $34.7 million, a decrease of 66.9% from $105.3 million in 2024, primarily due to the absence of license sales [140]. - Research and development expenses for the three months ended September 30, 2025, were $45.5 million, up 30.5% from $34.9 million in 2024, driven by increased costs for seralutinib clinical trials [141]. - For the nine months ended September 30, 2025, research and development expenses totaled $125.2 million, an increase of 22.3% from $102.4 million in 2024 [142]. - General and administrative expenses for the three months ended September 30, 2025, were $9.4 million, a 10.6% increase from $8.5 million in 2024 [145]. Cash and Liquidity - As of September 30, 2025, the company had $180.2 million in cash, cash equivalents, and marketable securities [121]. - The company incurred a net cash outflow of $123.0 million from operating activities during the nine months ended September 30, 2025, primarily due to the net loss [161]. - The company believes existing cash, cash equivalents, and marketable securities will be sufficient to fund operations for at least the next 12 months, although this is subject to risks and uncertainties [167]. Collaboration and Development - Under the Chiesi Collaboration Agreement, the total potential transaction value includes a one-time $160.0 million development cost reimbursement payment [123]. - The company has generated all revenue from the Chiesi Collaboration Agreement, which includes a one-time development cost reimbursement and ongoing cost-sharing payments [125]. - The company expects to incur significant commercialization expenses related to product sales, marketing, manufacturing, and distribution if seralutinib receives regulatory approval [124]. - The company anticipates ongoing research and development expenses as it continues the development of seralutinib, with costs varying significantly based on multiple factors [130][131]. - The company shares equally in the costs of ongoing global seralutinib clinical development with Chiesi, except for the PROSERA Phase 3 study, for which the company bears all costs [123]. Future Outlook and Risks - Future capital requirements will depend on various factors, including the ability to generate substantial product revenues and the costs associated with clinical trials for seralutinib [168]. - The company may face challenges in raising additional funds or entering favorable arrangements, which could dilute stockholder ownership and affect financial condition [169]. - The costs and timing of clinical trials for seralutinib, including manufacturing and regulatory review, will significantly impact future capital needs [170]. - As of September 30, 2025, there have been no material changes in market risk factors such as interest rate risk and foreign currency exchange risk [171].

Production and Sales Performance - Q3/25 consolidated production totaled 29,662 GEOs, a decrease of 15.5% from 35,180 GEOs in Q3/24[106] - At the Gold Bar Mine Complex, Q3/25 production was 8,191 GEOs, a 40% decrease from 13,640 GEOs in Q3/24[112] - The Fox Complex produced 6,386 GEOs in Q3/25, a 19% decrease from 7,855 GEOs in Q3/24, as mining continues in lower-grade zones[155] - San José mine produced 30,583 GEOs in Q3/25, a 10% increase from 27,927 GEOs in Q3/24, but a decrease in 9M/25 to 80,874 GEOs from 84,264 GEOs in 9M/24[168] Revenue and Financial Performance - Q3/25 revenues were $50.5 million from the sale of 14,968 GEOs at an average realized price of $3,477 per GEO, compared to $52.3 million from 21,350 GEOs at $2,499 per GEO in Q3/24[112] - Revenue from gold and silver sales decreased by 3% to $50.5 million in Q3/25, down from $52.3 million in Q3/24, primarily due to a 30% decrease in GEOs sold, despite a 39% increase in realized gold prices to $3,477 per GEO[120] - Revenue from gold and silver sales for the nine months ended September 30, 2025, decreased by 6% to $132.9 million, down from $141.0 million in the same period of 2024[128] - Revenue from gold and silver sales at the Gold Bar Mine was $29.4 million in Q3/25, down from $33.3 million in Q3/24, reflecting a 36% decrease in GEOs sold[146] - Revenue from gold sales at the Fox Complex was $20.8 million for Q3/25, compared to $19.0 million for Q3/24, driven by a 40% increase in the average realized gold price[157] - Revenue from gold and silver sales was $91.7 million in Q3/25, up from $70.4 million in Q3/24, driven by 44% and 40% higher realized gold and silver prices[169] Costs and Expenses - Cash costs and AISC per GEO sold in Q3/25 for the Fox Complex were $2,132 and $2,352, respectively, while for the Gold Bar Mine Complex they were $2,540 and $2,852[112] - Production costs applicable to sales increased by 19% to $35.2 million in Q3/25, compared to $29.7 million in Q3/24, driven by higher operational stripping costs at the Gold Bar Mine Complex[121] - Cash costs per GEO sold at the Gold Bar Mine increased to $2,540 in Q3/25 from $1,281 in Q3/24, while AISC per GEO sold rose to $2,852 from $1,822[148] - Cash costs per GEO sold at the Fox Complex were $2,132 in Q3/25, up from $1,572 in Q3/24, primarily due to a 21% decrease in GEOs sold[159] - Cash costs in Q3/25 were $50.1 million, down from $58.0 million in Q3/24, despite a 25% increase in production costs due to inflation and higher cost ore[170] - Cash costs per ounce sold for the three months ended September 30, 2025, was $2,366, compared to $1,390 for the same period in 2024, reflecting a significant increase of 70.0%[191] Profitability and Loss - The net loss for Q3/25 was $0.5 million, or $0.01 per share, an improvement from a net loss of $2.1 million, or $0.04 per share in Q3/24[112] - The company recorded a net loss of $462,000 in Q3/25, an improvement from a net loss of $2.1 million in Q3/24[120] - Adjusted EBITDA for Q3/25 was $11.8 million, or $0.22 per share, compared to $10.5 million, or $0.20 per share in Q3/24[112] - Adjusted EBITDA for Q3/25 was $11.8 million, an increase from $10.5 million in Q3/24, with adjusted EBITDA per share rising to $0.22 from $0.20[120] - Adjusted EBITDA for the three months ended September 30, 2025, was $11,815 thousand, compared to $10,489 thousand in 2024, marking an increase of 12.7%[193] Guidance and Future Projections - The Company revised its 2025 GEO production guidance to 112,000 to 123,000 GEOs, down from 120,000 to 140,000 GEOs[106] - The Company has tightened its annual production guidance for the Gold Bar Mine Complex to 32,000 to 35,000 GEOs, down from 40,000 to 45,000 GEOs[112] - The Company has revised its 2025 annual production guidance for the Froome deposit to 25,000 to 28,000 GEOs, down from 30,000 to 35,000 GEOs[155] - The Fenix Project is expected to produce approximately 20,000 GEOs annually once commercial production is achieved, anticipated to start mid-2027[163] Investments and Acquisitions - The Company signed agreements to acquire a 31% equity interest in Paragon Geochemical Laboratories for a total investment of $10.9 million[108] - The company invested $5.7 million in the Stock project during Q3/25, with plans for commercial production to commence in 2026[154] - McEwen Copper's Feasibility Study for the Los Azules project indicates an after-tax NPV8% of $2.9 billion and an internal rate of return of 19.8% based on a copper price of $4.25 per pound[108] - Proven and probable reserves at Los Azules total 10.2 billion pounds of copper, based on a copper price of $4.25 per pound[177] Cash and Liquidity - Cash from operating activities was $5.2 million in Q3/25, a significant decrease from $23.2 million in Q3/24[136] - Cash and cash equivalents increased to $51.2 million as of September 30, 2025, up from $13.7 million at the end of 2024[116] - Working capital improved to $62.6 million as of September 30, 2025, a $69.1 million increase from negative $6.5 million at the end of 2024[140] - As of September 30, 2025, the company held cash balances of $1.7 million (CAD 2.5 million) in Canadian dollars and $0.3 million (MXN 6.2 million) in Mexican pesos, with a 1.0% change in these currencies resulting in immaterial gains or losses[212] Currency and Debt Management - The company’s outstanding debt includes $110.0 million in convertible notes due 2030 and a $20.0 million term loan facility, with fixed coupons mitigating interest rate risk[221] - The Mexican peso appreciated by 2.4% against the U.S. dollar during the three months ended September 30, 2025, while the Canadian dollar and Argentine peso depreciated by 1.9% and 13.5%, respectively[210] Risk Management - The company does not hedge any of its sales, exposing it to all changes in commodity prices[218] - The company does not anticipate significant credit exposure associated with precious metals and doré sales agreements as of September 30, 2025[219] - The company has surety bonds of $47.5 million in place to cover projected reclamation costs, with an annual fee of 2.4% of their value[220] - The company has a 49.0% interest in MSC and a 46.4% ownership in McEwen Copper as of September 30, 2025, which introduces additional risks due to lack of decision-making power over day-to-day activities[208]

Financial Performance - Ellington Financial reported GAAP net income of $29.5 million, or $0.29 per share, and adjusted distributable earnings of $54.2 million, or $0.53 per share, significantly exceeding dividends[3]. - The total net income attributable to common stockholders for the three-month period ended September 30, 2025, was $42,382 thousand, compared to $46,851 thousand for the previous quarter, reflecting a decrease of approximately 9.0%[31]. - The company reported a net income (loss) per share of common stock of $0.42 for the three-month period ended September 30, 2025, down from $0.46 in the previous quarter[31]. - Net income for the three-month period ended September 30, 2025, was $37,758, compared to $51,073 for the previous quarter, representing a decrease of approximately 26.2%[53]. - Net income attributable to common stockholders for the three-month period ended September 30, 2025, was $29,504,000, down from $42,923,000 in the previous quarter, a decline of 31.2%[42]. Portfolio and Asset Management - The total portfolio holdings grew by 12% sequentially, with a total adjusted long credit portfolio of $3.56 billion, an 11% increase from $3.22 billion as of June 30, 2025[3][8]. - Longbridge segment net income was $8.6 million, with the Longbridge portfolio increasing by 37% sequentially to $750 million, driven by record proprietary reverse mortgage loan originations[11]. - As of September 30, 2025, Longbridge's HMBS assets increased to $10,232,166 thousand from $9,920,301 thousand as of June 30, 2025, representing a growth of approximately 3.15%[24]. - Total loan origination volume for the three-month period ended September 30, 2025, was $498,577 thousand, up from $427,062 thousand for the period ended June 30, 2025, indicating an increase of about 16.7%[26]. - The long Agency RMBS portfolio decreased by 18% quarter-over-quarter to $220.7 million, driven by net sales[10]. Debt and Equity - The recourse debt-to-equity ratio was 1.8:1 as of September 30, 2025, with an overall debt-to-equity ratio of 8.6:1 when including all borrowings[6]. - The company aims to increase the proportion of unsecured borrowings over time, currently at nearly 20% of recourse borrowings[4]. - Recourse borrowings as of September 30, 2025, were $3,252,917 thousand, with a debt-to-equity ratio of 1.8:1, compared to $2,950,497 thousand and a ratio of 1.7:1 as of June 30, 2025[27][30]. - Non-recourse borrowings stood at $12,331,643 thousand as of September 30, 2025, with a debt-to-equity ratio of 6.9:1, slightly down from 7.0:1 as of June 30, 2025[27][30]. - Longbridge's total borrowings reached $15,584,560 thousand as of September 30, 2025, compared to $14,892,533 thousand as of June 30, 2025, marking an increase of about 4.6%[27]. Income and Expenses - Total interest income and other income for the three-month period ended June 30, 2025, was $120,446,000, with a net income attributable to common stockholders of $42,923,000, resulting in earnings per share of $0.45[34]. - The investment portfolio generated interest income of $87,096,000, while interest expense totaled $67,387,000, leading to a net interest income of $53,059,000[34]. - Total expenses, including investment-related expenses and other expenses, were $57,066,000, impacting net income[34]. - Total expenses for the three-month period ended September 30, 2025, were $57,012,000, slightly down from $57,066,000 in the previous quarter[42]. - The company incurred $7,074 in dividends on preferred stock for the quarter, slightly up from $7,036 in the previous quarter[53]. Market Conditions and Risks - Forward-looking statements highlight potential risks including changes in interest rates and market conditions, which could affect future performance[38]. - The company is externally managed by Ellington Financial Management LLC, which may influence strategic decisions and operational performance[36]. - The financial results indicate a diversified investment strategy, including residential and commercial mortgage loans, mortgage-backed securities, and consumer loans[36]. Shareholder Information - The weighted average shares of common stock outstanding increased to 102,726 thousand as of September 30, 2025, from 101,589 thousand as of June 30, 2025[31]. - The weighted average shares of common stock outstanding were 96,995,000, reflecting a slight increase compared to previous periods[34]. - Book value per common share as of September 30, 2025, was $13.40, slightly down from $13.49 as of June 30, 2025[44]. - The company plans to host a conference call on November 6, 2025, to discuss financial results for the quarter ended September 30, 2025, indicating ongoing communication with investors[37].

Revenue Performance - Consolidated net revenues decreased 32% to $27.1 million for the three months ended September 30, 2025, compared to $39.9 million for the same period in 2024[98]. - Sales of Diagnostics products decreased 34% to $14.5 million for the three months ended September 30, 2025, primarily due to lower international HIV revenues[99]. - Sample Management Solutions revenues decreased 20% to $10.3 million for the three months ended September 30, 2025, impacted by a large customer's bankruptcy[100]. - COVID-19 Diagnostics revenues decreased 96% to $0.09 million for the three months ended September 30, 2025, due to decreased sales through U.S. government procurement contracts[102]. - Consolidated net revenues decreased 41% to $88.3 million for the nine months ended September 30, 2025, compared to $148.4 million for the same period in 2024[118]. - Sales of Diagnostics products decreased 10% to $51.4 million for the nine months ended September 30, 2025, largely due to lower international HIV revenues[119]. - COVID-19 Diagnostics revenues decreased 99% to $0.6 million for the nine months ended September 30, 2025, reflecting a significant decline in demand[121]. - Non-product and services revenues increased 307% to $4.1 million for the nine months ended September 30, 2025, driven by funded R&D contracts from the Sherlock acquisition[123]. Operating Performance - Consolidated operating loss for the three months ended September 30, 2025, was $16.1 million, compared to a $6.0 million operating loss for the same period in 2024[107]. - Operating loss increased to $51.9 million for the nine months ended September 30, 2025, compared to a loss of $15.8 million in 2024[127]. - Consolidated gross profit margin decreased to 42.2% for the nine months ended September 30, 2025, down from 44.4% in 2024, primarily due to a negative product mix[126]. Expenses - Research and development expenses rose by 56% to $31.1 million for the nine months ended September 30, 2025, driven by clinical trials and operational expenses from acquired companies[128]. - Sales and marketing expenses decreased by 19% to $19.5 million for the nine months ended September 30, 2025, due to reduced employee costs and lower advertising expenses[129]. - General and administrative expenses increased by 14% to $37.9 million for the nine months ended September 30, 2025, largely due to higher legal fees and costs associated with acquisitions[130]. Other Financial Metrics - Other income decreased to $5.7 million for the nine months ended September 30, 2025, down from $9.3 million in 2024, primarily due to lower interest income[133]. - Cash and cash equivalents decreased to $216.5 million at September 30, 2025, from $267.8 million at December 31, 2024[136]. - Working capital decreased to $242.8 million at September 30, 2025, down from $299.7 million at December 31, 2024[137]. - Net cash used in operating activities was $40.0 million for the nine months ended September 30, 2025, influenced by various non-cash charges[138].