Financial Performance - Adjusted diluted EPS for Q3 2025 was $0.75, a 17.2% increase from $0.64 in Q3 2024[3] - Total operating revenue grew 5.2% year-over-year, driven by a 21.4% increase in cemetery preneed sales and a 27.2% increase in financial revenue[5] - Total revenue for Q3 2025 was $102.7 million, compared to $100.7 million in Q3 2024, reflecting a $2.1 million increase[8] - Net income for Q3 2025 decreased to $6.6 million from $9.9 million in Q3 2024, impacted by a $6.2 million increase in net loss on divestitures[8] - Adjusted net income for Q3 2025 was $11,923,000, representing a 17.9% increase from $10,094,000 in Q3 2024[16] - The company reported a net income of $6,570,000 for Q3 2025, down from $9,866,000 in Q3 2024, primarily due to special items[16] - Basic earnings per share for Q3 2025 were $0.42, a decrease of 35.4% compared to $0.65 in Q3 2024[22] - GAAP basic earnings per share for Q3 2025 was $0.42, down from $0.65 in Q3 2024, a decline of 35.4%[41] Revenue and Sales - Cemetery operating revenue increased by 12.6% year-over-year, with a 15.1% rise in the average price of preneed interment rights sold[6] - The average price per preneed interment right sold in Q3 2025 was $6,257, compared to $5,360 in Q3 2024[7] - Total operating revenue for Q3 2025 was $101,341,000, an increase of 5.1% compared to $96,363,000 in Q3 2024[16] - Cemetery operating revenue rose to $35,586,000 in Q3 2025, up 12.6% from $31,604,000 in Q3 2024[16] - Service revenue for Q3 2025 was $44,204 million, a slight decrease of 1.6% compared to $44,916 million in Q3 2024[22] - Total revenue for the nine months ended September 30, 2025, reached $311,958 million, up 1.5% from $306,498 million in the same period of 2024[22] Cash Flow and Expenses - Cash provided by operating activities for Q3 2025 was $24.7 million, up from $20.8 million in Q3 2024[7] - Adjusted free cash flow for the nine months ended September 30, 2025, was $39.3 million, compared to $35.9 million for the same period in 2024[10] - Cash provided by operating activities for the nine months ended September 30, 2025, was $46,568 million, an increase of 8.7% from $42,716 million in 2024[24] - The company incurred acquisition and divestiture expenses of $395,000 in Q3 2025, compared to no expenses in Q3 2024[40] Outlook and Strategic Initiatives - The revised 2025 outlook projects total revenue between $413 million and $417 million, with adjusted diluted EPS expected to be between $3.25 and $3.30[9] - The company anticipates continued growth in revenue and adjusted EBITDA, driven by strategic acquisitions and market expansion efforts[44] Assets and Liabilities - Total assets increased to $1,342,750,000 as of September 30, 2025, compared to $1,279,580,000 at the end of 2024[19] - The total liabilities stood at $1,100,666,000 as of September 30, 2025, up from $1,071,030,000 at the end of 2024[19] EBITDA and Margins - Consolidated EBITDA for the nine months ended September 30, 2025, reached $97,791,000, a significant increase from $84,493,000 in the same period of 2024, reflecting a margin improvement to 31.3%[16] - The company’s adjusted consolidated EBITDA margin improved to 32.1% in Q3 2025, compared to 30.5% in Q3 2024[17] - The company’s financial EBITDA margin was reported at 89.3% for Q3 2025, down from 92.0% in Q3 2024[16] - Adjusted consolidated EBITDA margin for Q3 2025 was 32.1%, up from 30.5% in Q3 2024[39] Investor Guidance - The company advises investors to review the "Risk Factors" section in the Annual Report on Form 10-K for the year ended December 31, 2024, for material factors that could affect actual results[46] - Investors are cautioned against placing undue reliance on forward-looking statements, which are only valid as of the communication date[46] - The company has no obligation to publicly update or revise forward-looking statements unless required by law[46]

[Filing Information](index=1&type=section&id=Filing%20Information) This section details the registrant's general filing information, securities status, and contact details [General Filing Details](index=1&type=section&id=General%20Filing%20Details) This section provides the foundational details of the Form 8-K filing, including the registrant's legal name, jurisdiction of incorporation, principal executive offices address, and telephone number - Registrant Name: **APA CORPORATION**[2](index=2&type=chunk) - Date of Report (earliest event reported): **October 8, 2025**[2](index=2&type=chunk) - Jurisdiction of Incorporation: **Delaware**[2](index=2&type=chunk) - Principal Executive Offices: **2000 W Sam Houston Pkwy S, Suite 200, Houston, Texas 77042-3643**[2](index=2&type=chunk) - Registrant's Telephone Number: **(713) 296-6000**[2](index=2&type=chunk) [Securities and Registrant Status](index=1&type=section&id=Securities%20and%20Registrant%20Status) This section outlines the securities registered under Section 12(b) of the Act and confirms the registrant's status regarding emerging growth company provisions | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock, $0.625 par value | APA | Nasdaq Global Select Market | - Emerging growth company status: **Not an emerging growth company**[4](index=4&type=chunk) [Report Items](index=2&type=section&id=Report%20Items) This section details the company's financial and operating results and lists accompanying exhibits [Item 2.02 Results of Operations and Financial Condition](index=2&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) APA Corporation announced supplemental financial and operating results for the fiscal quarter ended September 30, 2025, through a press release issued on October 8, 2025 - Date of press release: **October 8, 2025**[6](index=6&type=chunk) - Information announced: **Supplemental information regarding certain financial and operating results**[6](index=6&type=chunk) - Period covered: **Fiscal quarter ended September 30, 2025**[6](index=6&type=chunk) - Exhibit reference: **Full text of the press release is furnished as Exhibit 99.1**[6](index=6&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=2&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits accompanying the Form 8-K filing, which include the press release detailing financial and operating results and the interactive data file | Exhibit No. | Description | | :---------- | :---------- | | 99.1 | Press Release of APA Corporation dated October 8, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signatures](index=3&type=section&id=Signatures) This section provides the authorization and signatory details for the Form 8-K filing [Authorization and Signatory](index=3&type=section&id=Authorization%20and%20Signatory) The report is duly signed on behalf of APA Corporation by Rebecca A. Hoyt, Senior Vice President, Chief Accounting Officer, and Controller, on October 8, 2025 - Signatory: **Rebecca A. Hoyt**[11](index=11&type=chunk) - Title: **Senior Vice President, Chief Accounting Officer, and Controller (Principal Accounting Officer)**[11](index=11&type=chunk) - Date of Signature: **October 8, 2025**[11](index=11&type=chunk)

Financial Performance - Revenue for the three months ended September 30, 2025, was $26,063,000, a significant increase from $3,695,000 in the same period of 2024, marking a growth of 605%[19] - For the nine months ended September 30, 2025, total revenues reached $72.3 million, compared to $11.6 million for the same period in 2024, indicating a growth of about 522%[86] - Net income for the nine months ended September 30, 2025, was $71,064,000, a significant improvement compared to a net loss of $69,772,000 for the same period in 2024[27] - The company reported a gain on the sale of PRV amounting to $148,325,000 for the nine months ended September 30, 2025[19] - Other income for the nine months ended September 30, 2025, was $146.3 million, compared to $1.8 million in the same period of 2024, mainly due to a gain on the sale of the PRV[205] Assets and Liabilities - Total current assets increased to $225,115,000 as of September 30, 2025, compared to $86,027,000 as of December 31, 2024, representing a growth of 162%[18] - Total liabilities decreased slightly to $136,951,000 as of September 30, 2025, from $138,461,000 as of December 31, 2024[18] - The company’s total assets increased to $270,116,000 as of September 30, 2025, from $178,127,000 as of December 31, 2024, reflecting a growth of 51%[18] - As of September 30, 2025, the Company held investment securities with an aggregate fair value of $175.9 million, up from $41.7 million as of December 31, 2024, reflecting a significant increase in investment holdings[38] - Long-term debt as of September 30, 2025, was $61.3 million, an increase from $59.5 million as of December 31, 2024[85] Equity and Stockholder Information - Stockholders' equity increased significantly to $133,165,000 as of September 30, 2025, compared to $39,666,000 as of December 31, 2024, reflecting an increase of 235%[18] - The balance of stockholders' equity as of September 30, 2024, was $69,770,000, reflecting a decrease from previous periods due to net losses[24] - The fair value of the warrant liability was approximately $13.8 million as of September 30, 2025, down from $17.8 million as of December 31, 2024[106] - The balance of common stock warrant liabilities decreased to $13,767,000 as of September 30, 2025, from $17,804,000 as of December 31, 2024, reflecting a decline of 22.8%[118] Expenses - Operating expenses for the nine months ended September 30, 2025, totaled $67,385,000, a decrease from $72,486,000 in the same period of 2024, showing a reduction of approximately 7%[19] - Research and development expenses directly identified to programs for the three months ended September 30, 2025, were $1.8 million, down from $4.9 million in 2024, a decrease of approximately 64%[77] - Selling, general and administrative expenses directly identified to programs for the three months ended September 30, 2025, were $5.1 million, an increase from $4.9 million in 2024, reflecting a growth of about 4%[77] - Research and development expenses for the nine months ended September 30, 2025, were $3,322,000, down from $4,696,000 in 2024, reflecting a decrease of 29.3%[112] - Selling, general and administrative expenses increased by approximately $18.5 million, from $38.7 million in 2024 to $57.3 million in 2025, driven by higher personnel-related costs and professional fees[204] Cash Flow - Cash flows from operating activities resulted in a net cash used of $7,114,000 for the nine months ended September 30, 2025, compared to $53,415,000 in 2024[27] - The company reported a net cash provided by financing activities of $9,518,000 for the nine months ended September 30, 2025, compared to $81,312,000 in 2024[27] - As of September 30, 2025, the company had cash, cash equivalents, and investments totaling $230.4 million[206] Product Development and Regulatory Approvals - On September 20, 2024, the FDA approved MIPLYFFA (arimoclomol) for Niemann-Pick disease type C, marking it as the first FDA-approved treatment for this condition[29] - MIPLYFFA generated sales of $22.4 million and $61.0 million for the three and nine months ended September 30, 2025, respectively[88] - The company is focusing on obtaining regulatory approval for MIPLYFFA in Europe, having submitted a Marketing Authorization Application (MAA) in July 2025[155] - Celiprolol is being advanced as an investigational product for Vascular Ehlers-Danlos Syndrome (VEDS) and has received orphan drug designation from the FDA[165] - The DiSCOVER trial for celiprolol aims to enroll 150 VEDS patients, with 44 participants enrolled as of September 30, 2025[168] Impairments and Write-downs - The company recognized an impairment of intangible assets amounting to $58,710,000 in 2025, while there was no such charge in 2024[27] - The company recorded an intangible asset impairment charge of $58.7 million for the nine months ended September 30, 2025, related to the OLPRUVA asset group, which was determined to be not fully recoverable[128] - The Company recognized charges of approximately $11.7 million for unsaleable inventory for the nine months ended September 30, 2025, compared to $5.2 million for the same period in 2024[59] Market and Sales Information - The estimated incidence of NPC is one in 100,000 to 130,000 live births, with approximately 2,000 individuals affected in the U.S. and Europe combined, including about 900 in the U.S.[150] - OLPRUVA, approved in the U.S. for chronic management of Urea Cycle Disorders (UCDs), began generating revenue in Q4 2023[160] - The company has generated revenue from product sales of MIPLYFFA and OLPRUVA, as well as reimbursements under the French expanded access program, with royalties and milestone payments contributing to revenue streams[60]

Financial Performance - Revenue for the three months ended September 30, 2025, was $26,063,000, a significant increase from $3,695,000 in the same period of 2024, marking a growth of 605.5%[19] - For the nine months ended September 30, 2025, total revenues reached $72.3 million, compared to $11.6 million for the same period in 2024, indicating a growth of about 522%[86] - For the nine months ended September 30, 2025, Zevra reported a net income of $71,064,000, a significant improvement compared to a net loss of $69,772,000 for the same period in 2024[27] - Other income for the nine months ended September 30, 2025, was $146.3 million, a substantial increase from $1.8 million in the same period of 2024, mainly due to the gain on sale of the PRV[205] Assets and Liabilities - Total current assets increased to $225,115,000 as of September 30, 2025, compared to $86,027,000 as of December 31, 2024, representing a growth of 162.5%[18] - Total liabilities decreased slightly to $136,951,000 as of September 30, 2025, from $138,461,000 as of December 31, 2024, a decline of 1.1%[18] - Stockholders' equity increased significantly to $133,165,000 as of September 30, 2025, compared to $39,666,000 as of December 31, 2024, reflecting an increase of 235.5%[18] - As of September 30, 2025, total receivables amounted to $16.8 million, an increase from $10.5 million as of December 31, 2024[99] Cash Flow and Financing - Cash and cash equivalents rose to $54,439,000 as of September 30, 2025, up from $33,785,000 as of December 31, 2024, an increase of 61.1%[18] - The company reported a net cash provided by financing activities of $9,518,000 for the nine months ended September 30, 2025, compared to $81,312,000 in the same period of 2024[27] - Cash flows from operating activities resulted in a net cash used of $7,114,000 for the nine months ended September 30, 2025, compared to $53,415,000 in the same period of 2024[27] - As of September 30, 2025, the company had cash, cash equivalents, and investments totaling $230.4 million, primarily funded through debt, equity issuance, and product sales[206] Expenses - Operating expenses for the nine months ended September 30, 2025, totaled $67,385,000, a decrease from $72,486,000 in the same period of 2024, representing a reduction of 7.5%[19] - Research and development expenses directly identified to programs for the three months ended September 30, 2025, were $1.8 million, down from $4.9 million in 2024, a decrease of approximately 64%[77] - Selling, general and administrative expenses directly identified to programs for the three months ended September 30, 2025, were $5.1 million, an increase from $4.9 million in 2024, reflecting a growth of about 4%[77] - Selling, general and administrative expenses increased by approximately $18.5 million, from $38.7 million in 2024 to $57.3 million in 2025, driven by higher personnel-related costs and professional fees[204] Stock and Equity - Basic net loss per share improved to $(0.01) for the three months ended September 30, 2025, compared to $(0.69) for the same period in 2024[19] - Total stock-based compensation expense for the three months ended September 30, 2025, was $2,771,000, a decrease of 54.8% compared to $6,137,000 for the same period in 2024[112] - Stock-based compensation expense for the nine months ended September 30, 2025, was $8,350,000, down from $10,888,000 in the prior year[27] - The balance of common stock warrant liabilities as of September 30, 2025, was $13,767,000, down from $17,804,000 as of December 31, 2024, reflecting a decrease of 22.8%[118] Regulatory and Product Development - The FDA approved MIPLYFFA (arimoclomol) on September 20, 2024, as the first treatment for Niemann-Pick disease type C, marking a significant milestone for the company[29] - The company is focusing on obtaining regulatory approval for MIPLYFFA in Europe, having submitted a Marketing Authorization Application (MAA) in July 2025[155] - MIPLYFFA generated sales of $22.4 million and $61.0 million for the three and nine months ended September 30, 2025, respectively[88] - OLPRUVA, approved in the U.S. for chronic management of Urea Cycle Disorders (UCDs), began generating revenue in Q4 2023[160] Acquisitions and Partnerships - The Company completed the acquisition of Acer Therapeutics Inc. on November 17, 2023, consolidating Acer's assets and liabilities as a variable interest entity (VIE) under its control[44] - The company licensed certain intellectual property related to a pre-clinical stage prodrug of dextrorphan in April 2025 for an upfront payment of $250,000, with potential future regulatory milestones of up to $8.45 million[142] - Commave is responsible for commercialization activities for AZSTARYS in the U.S., with milestone payments potentially totaling up to $63.0 million upon specified regulatory milestones[181] Impairments and Write-downs - The company recognized an impairment of intangible assets amounting to $58,710,000 in 2025, while there was no such charge in 2024[27] - The company recorded an intangible asset impairment charge of $58.7 million for the nine months ended September 30, 2025, related to the OLPRUVA asset group, which was determined to be not fully recoverable[128] - For the three and nine months ended September 30, 2025, the Company recognized charges of approximately $11.7 million and $0 related to write-downs for unsaleable inventory, respectively[59] Market and Incidence - The estimated incidence of NPC is one in 100,000 to 130,000 live births, with approximately 2,000 individuals affected in the U.S. and Europe combined, including about 900 in the U.S.[150] - As of September 30, 2025, there were 137 enrollments for MIPLYFFA, focusing on raising awareness among undiagnosed and untreated NPC patients[153]

Financial Performance - Revenue for the three months ended September 30, 2025, was $1,685.2 million, an increase of 11% compared to $1,522.7 million in 2024[194] - Net income for the same period was $46.1 million, a significant increase of 471% from a net loss of $12.4 million in 2024[194] - Active Riders increased to 28.7 million, representing an 18% growth from 24.4 million in the prior year[194] - Gross Bookings reached $4,780.4 million, up 16% from $4,108.4 million in the previous year[194] - Adjusted EBITDA for the three months ended September 30, 2025, was $138.9 million, a 29% increase from $107.3 million in 2024[194] - Revenue for Q3 2025 was $1,685.2 million, an increase of 11% from $1,522.7 million in Q3 2024[241] - Net income for Q3 2025 was $46.1 million, a significant increase of 471% compared to a loss of $12.4 million in Q3 2024[241] - Free cash flow for Q3 2025 was $277.8 million, up 14% from $242.8 million in Q3 2024[256] - Adjusted EBITDA for Q3 2025 was $138.9 million, representing a 29% increase from $107.3 million in Q3 2024[241] - Gross bookings for Q3 2025 reached $4,780.4 million, a 16% increase from $4,108.4 million in Q3 2024[241] Cost and Expenses - Cost of revenue for the three months ended September 30, 2025, increased by $39.0 million, or 4%, to $927,221, mainly due to a $65.9 million rise in insurance costs[224] - For the nine months ended September 30, 2025, cost of revenue increased by $262.7 million, or 11%, totaling $2,725,829, primarily driven by a $273.3 million increase in insurance costs[225] - Operations and support expenses increased by $14.0 million, or 12%, in the three months ended September 30, 2025, totaling $131,424, due to higher fleet operations support costs[227] - Research and development expenses rose by $5.2 million, or 5%, in the three months ended September 30, 2025, totaling $109,615, primarily due to increased personnel-related costs[229] - Sales and marketing expenses increased by $27.5 million, or 13%, in the three months ended September 30, 2025, totaling $243,317, driven by higher costs related to incentive programs[231] - General and administrative expenses were relatively flat in the three months ended September 30, 2025, totaling $250,565, with a net decrease in certain loss contingencies[233] Cash Flow and Liquidity - Net cash provided by operating activities was $291.3 million, a 10% increase from $264.0 million in the previous year[194] - Net cash provided by operating activities increased to $922.2 million for the nine months ended September 30, 2025, up from $696.4 million in the same period of 2024, reflecting improved net income from $(38.9) million to $89.0 million[259][260] - Cash provided by investing activities was $316.5 million for the nine months ended September 30, 2025, primarily from sales and maturities of marketable securities totaling $3.0 billion[261] - Cash used in financing activities was $511.4 million for the nine months ended September 30, 2025, mainly due to repayment of 2025 Notes of $390.7 million and repurchase of Class A common stock of $400.0 million[263] - As of September 30, 2025, the company had approximately $1.3 billion in cash and cash equivalents and $686.6 million in short-term investments, providing sufficient liquidity for at least the next 12 months[265][271] - As of September 30, 2025, the company had unrestricted cash, cash equivalents, and short-term investments totaling approximately $2.0 billion[279] Acquisitions and Investments - The acquisition of Intelligent Apps GmbH (Freenow) was completed for approximately €204.1 million ($234.8 million) on July 31, 2025[192] - The acquisition of TheBookingRoomGroup Limited (TBR Global Chauffeuring) was completed for approximately £83.0 million, with up to £17.3 million in contingent consideration[193] - The company completed the acquisition of TBR Global Chauffeuring for approximately £83.0 million in cash on October 14, 2025[271] - The company issued $500 million in 2030 Notes in September 2025, using proceeds for capped calls and repurchasing Class A common stock[268] Debt and Financing - The company reported long-term debt of $1.1 billion, primarily consisting of fixed-rate 2029 Notes and 2030 Notes with a 0% interest rate[279] - A share repurchase program was authorized for up to $750.0 million, with $400.0 million repurchased during the nine months ended September 30, 2025[272] - The company has not drawn on its $420 million Revolving Credit Facility as of September 30, 2025, which remains available for liquidity needs[271] Tax and Other Income - Provision for income taxes increased by $1.3 million, or 187%, in Q3 2025 compared to Q3 2024[239] - Other income, net decreased by $25.1 million, or 49%, in Q3 2025 compared to Q3 2024, primarily due to an $11.0 million decrease in interest income and an $8.3 million decrease from foreign currency exchange[237] Market and Economic Factors - The company expects revenue to fluctuate based on factors such as ride volume, driver supply, pricing, incentives, and seasonality related to shared bikes and scooters[223] - The company is exposed to foreign currency exchange risk due to international revenue and expenses denominated in foreign currencies[280] - Fluctuations in foreign currency exchange rates have affected the company's net income, but a hypothetical 10% change would not materially impact the condensed consolidated financial statements[280] - A hypothetical 100 basis points change in interest rates would not materially impact the company's financial condition or results of operations[279]

Financing Activities - In October 2025, TES issued $1.4 billion in 6.25% Senior Unsecured Notes due 2034 and $1.29 billion in 6.50% Senior Unsecured Notes due 2036 to fund the Freedom and Guernsey Acquisitions[178]. - The company allocated a $1.2 billion senior secured term loan B credit facility (TLB-3) to fund the Freedom and Guernsey Acquisitions, increasing its existing revolving credit facility from $700 million to $900 million[179]. - The company increased its share repurchase program from $995 million to $2 billion, extending the expiration to December 31, 2028[181]. Acquisitions - The Freedom and Guernsey Acquisitions involve a gross purchase price of approximately $3.8 billion, or $3.5 billion after adjusting for estimated tax benefits, expected to close in Q1 2026[185]. - The addition of the Freedom and Guernsey assets is expected to increase generating capacity by approximately 3 gigawatts, enhancing low-carbon capacity offerings[186]. Revenue and Income - For the three months ended September 30, 2025, operating revenues increased to $812 million, up from $650 million in 2024, with capacity revenues rising to $166 million from $50 million[203]. - The company reported a net income of $207 million for the three months ended September 30, 2025, compared to $168 million in the same period of 2024[203]. - Net Income Attributable to Stockholders increased by $39 million for the three months ended September 30, 2025, compared to the same period in 2024[204]. - Operating Revenues, net of Energy Expenses, increased by $115 million, driven by a $116 million increase in Capacity Revenues due to higher cleared capacity prices[204]. - For the nine months ended September 30, 2025, Capacity Revenues reached $303 million, a $162 million increase compared to $141 million in 2024[205]. - Energy and Other Revenues for the nine months ended September 30, 2025, totaled $1,552 million, reflecting a $108 million increase from $1,444 million in 2024[205]. - Net Income Attributable to Stockholders decreased by $772 million for the nine months ended September 30, 2025, compared to $916 million in 2024[206]. Liquidity and Cash Flow - Total available liquidity as of September 30, 2025, was $1,197 million, an increase from $1,028 million as of December 31, 2024[212]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $424 million, an increase of $178 million from $246 million in 2024[221]. - The company experienced a $(1,381) million unfavorable change in net cash used in investing activities, primarily due to significant proceeds from asset sales in 2024[223]. - Financing activities showed a $1,104 million favorable change, largely due to a decrease in share repurchases and repayments of debt[224]. Performance Metrics - Adjusted EBITDA for Q3 2025 was $363 million, compared to $230 million in Q3 2024, representing a 58% increase year-over-year[231]. - Total Adjusted EBITDA for the nine months ended September 30, 2025, reached $653 million, compared to $606 million for the same period in 2024, reflecting an 8% increase[231]. - Interest expense and other finance charges for Q3 2025 were $67 million, slightly up from $66 million in Q3 2024[231]. - Income tax expense for Q3 2025 was $97 million, significantly higher than $11 million in Q3 2024, showing a substantial increase[231]. - Depreciation, amortization, and accretion costs for Q3 2025 totaled $61 million, down from $75 million in Q3 2024, a decrease of 19%[231]. - The company reported a nuclear fuel amortization expense of $27 million in Q3 2025, compared to $30 million in Q3 2024[231]. - Unrealized gains on commodity derivative contracts were $36 million in Q3 2025, a significant improvement from a loss of $102 million in Q3 2024[231]. Future Plans - The company plans capital expenditures of $200 million for 2025, with significant allocations for nuclear fuel and PJM generation facilities[220]. - The company plans to include Cumulus Digital in Adjusted EBITDA starting Q1 2024, following the termination of the Cumulus Digital TLF[229]. - Adjusted EBITDA is used by the company to evaluate operating performance and set performance metrics for annual short-term incentive compensation[228].

Financial Performance - Total revenues for Q3 2025 reached $460.4 million, a 25.4% increase from $367.1 million in Q3 2024[12] - Net income for Q3 2025 was $74.7 million, compared to $30.6 million in Q3 2024, representing a 143.5% year-over-year growth[12] - Earnings per share (EPS) for Q3 2025 were $3.22 (basic) and $3.17 (diluted), up from $1.28 and $1.26 in Q3 2024, respectively[12] - Comprehensive income for Q3 2025 was $62.9 million, compared to $56.2 million in Q3 2024, indicating a 11.9% increase[15] - Operating income for the three months ended September 30, 2025, was $190.3 million, up 58.2% from $120.2 million in the same period of 2024[113][115] - Net income for the nine months ended September 30, 2025, was $180.177 million, compared to $86.063 million for the same period in 2024, representing an increase of 109.5%[21] - Total revenues for the nine months ended September 30, 2025, were $1.3 billion, a 23.2% increase from $1.1 billion in the same period of 2024[117][119] Assets and Liabilities - Total assets increased to $5.26 billion as of September 30, 2025, from $4.79 billion at the end of 2024, marking a 9.8% growth[9] - The company's total liabilities increased to $4.31 billion as of September 30, 2025, from $4.02 billion at the end of 2024, representing a 7.2% rise[9] - The company's receivable portfolios, net, rose to $4.27 billion, up 13.1% from $3.78 billion at the end of 2024[9] - The total borrowings as of September 30, 2025, were $3,933,858 thousand, up from $3,672,762 thousand as of December 31, 2024, indicating an increase of approximately 7.1%[69] - Total equity as of September 30, 2025, was $952.914 million, down from $1,048.105 million as of September 30, 2024, reflecting a decrease of 9.1%[17] Cash Flow and Operating Activities - Cash and cash equivalents at the end of the period were $172.488 million, a decrease from $247.353 million at the end of the same period in 2024, indicating a decline of 30.2%[21] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $136.388 million, slightly up from $132.624 million in 2024, showing an increase of 2.9%[21] - Cash collections for the three months ended September 30, 2025, amounted to $663,018 thousand, an increase from $550,268 thousand in the same period of 2024, representing a growth of about 20.5%[65] - Collections applied to receivable portfolios, net, for the three months ended September 30, 2025, were $292,892 thousand, compared to $222,149 thousand in 2024, marking an increase of approximately 31.7%[65] Stock and Shareholder Activities - The company repurchased and retired common stock totaling $35.329 million during the nine months ended September 30, 2025[21] - The company repurchased 243,174 shares for approximately $10 million during the three months ended September 30, 2025, as part of a $300 million share repurchase program approved in May 2021[36] - The total weighted-average dilutive shares outstanding for the three months ended September 30, 2025, was 23.52 million, compared to 24.41 million in 2024, indicating a decrease of 3.6%[37] Expenses and Taxation - Operating expenses for Q3 2025 totaled $287.2 million, an increase of 10.0% compared to $261.0 million in Q3 2024[12] - The provision for income taxes for Q3 2025 was $25.2 million, compared to $10.1 million in Q3 2024, reflecting a higher taxable income[12] - The Company's effective tax rate for the three months ended September 30, 2025, was 25.2%, compared to 24.8% for the same period in 2024[10] Debt and Financing - The company issued $500.0 million in 6.625% Senior Secured Notes due April 2031, with interest payable semi-annually starting April 15, 2026[75] - The outstanding borrowings under the Cabot Securitisation Senior Facility were £255.0 million (approximately $342.9 million), with a weighted average interest rate of 7.29% for the three months ended September 30, 2025[88] - The U.S. Facility had outstanding borrowings of $352.5 million as of September 30, 2025, with a weighted average interest rate of 7.81% for the three months ended September 30, 2025[91] - The total principal balance of the Company's Convertible Notes was $330.0 million as of September 30, 2025, with interest rates of 3.250% and 4.000% for the 2025 and 2029 Convertible Notes, respectively[76] Other Comprehensive Income and Loss - Other comprehensive income for the nine months ended September 30, 2025, was $30.840 million, compared to $19.538 million in 2024, indicating an increase of 57.7%[21] - The balance of accumulated other comprehensive loss as of September 30, 2025, was $(131.290) million, compared to $(104.382) million as of September 30, 2024, reflecting an increase in loss of 25.8%[17] - The company expects to reclassify approximately $10.5 million of net derivative loss from other comprehensive income into earnings within the next 12 months[55] Receivable Portfolios - The fair value of receivable portfolios as of September 30, 2025, was estimated at $4.55 billion, an increase from $4.05 billion as of December 31, 2024[44] - The total face value of receivable portfolios as of September 30, 2025, was $2,767,966 thousand, compared to $2,170,385 thousand as of September 30, 2024, indicating an increase of approximately 27.5%[65] - The balance of receivable portfolios, net at the end of the period was $4,270,016 thousand, up from $3,719,260 thousand in the same period of 2024, indicating an increase of about 14.8%[63]

Financial Performance - Total revenue for Q3 2025 was $52.3 million, a 2% increase from $51.5 million in Q3 2024, while total revenue for the nine months ended September 30, 2025 was $139.4 million, a 3% decrease from $143.0 million in the same period of 2024[167][168]. - The net loss for Q3 2025 was $5.5 million, compared to a net income of $0.9 million in Q3 2024, primarily due to decreased revenues and increased operating expenses[173]. - Total revenue, net decreased by $3.6 million to $139.4 million, or 3%, for the nine months ended September 30, 2025, compared to the same period in 2024[209]. - Gross profit for the three months ended September 30, 2025, was $27.6 million, down from $29.0 million in 2024[208]. - Loss from operations for the three months ended September 30, 2025, was $(9.2) million, compared to $(4.2) million in 2024[208]. - Net loss for the three months ended September 30, 2025, was $(5.5) million, compared to a net income of $0.9 million in 2024[208]. Revenue Breakdown - Direct sales accounted for 72% of total revenue in Q3 2025, down from 77% in Q3 2024, while distributor sales increased to 28% from 23% in the same period[169]. - Product revenue decreased by $1.4 million to $38.1 million, or 4%, for the three months ended September 30, 2025, primarily due to lower revenue in EMEA[210]. - Service revenue increased by $2.2 million to $14.2 million, or 19%, for the three months ended September 30, 2025, driven by growth in the installed base of instruments[211]. - Product revenue decreased by $10.6 million to $97.6 million, or 10%, for the nine months ended September 30, 2025, primarily due to lower revenue in EMEA and the United States[210]. - Service revenue increased by $7.0 million to $41.7 million, or 20%, for the nine months ended September 30, 2025, reflecting an increase in service contracts and maintenance activity[211]. Expenses and Costs - Research and development expenses for Q3 2025 were $9.0 million, compared to $9.9 million in Q3 2024, indicating a focus on cost management while continuing to invest in innovation[170]. - Total operating expenses for the three months ended September 30, 2025, were $36.7 million, an increase from $33.3 million in 2024[208]. - Total cost of sales increased by $2.2 million to $24.7 million, or 10%, for the three months ended September 30, 2025 compared to the same period in 2024[212]. - Research and development expenses decreased by 9% to $9.0 million for the three months ended September 30, 2025, and by 7% to $27.5 million for the nine months ended September 30, 2025 compared to 2024[217]. - Sales and marketing expenses decreased by 6% to $11.7 million for the three months ended September 30, 2025, and by 3% to $36.3 million for the nine months ended September 30, 2025 compared to 2024[218]. - General and administrative expenses increased by 47% to $16.1 million for the three months ended September 30, 2025, and by 25% to $42.6 million for the nine months ended September 30, 2025 compared to 2024[219]. Cash Flow and Investments - As of September 30, 2025, the company had approximately $261.7 million in cash and cash equivalents and short-term investments, down from $277.9 million as of December 31, 2024[226]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $3.92 million, influenced by a net loss of $22.5 million[233]. - Net cash provided by investing activities during the nine months ended September 30, 2025, was $12.0 million, driven by proceeds from maturities of marketable securities of $216.1 million[235]. - Net cash used in financing activities during the nine months ended September 30, 2025, was $12.2 million, primarily due to share repurchases of $15.1 million[237]. Market and Strategic Developments - The company completed the acquisition of Luminex's flow cytometry and imaging business on February 28, 2023, enhancing its product offerings and market reach[166]. - The installed base of instruments is expected to drive recurring revenue growth, with a focus on increasing service and reagent sales as the customer base expands[177]. - The company plans to continue investing in commercial infrastructure and expanding its workforce to support growth in instrument sales and reagent offerings[171]. - Inflationary pressures and a challenging fundraising environment for pharmaceutical customers may impact future operating results and sales cycles[186][187]. Tax and Interest - Benefit from income taxes was $2.3 million for the three months ended September 30, 2025, compared to $0.8 million for the same period in 2024, reflecting a 192% increase[225]. - Interest expense increased by 315% to $0.5 million for the three months ended September 30, 2025, and by 73% to $1.2 million for the nine months ended September 30, 2025 compared to 2024[221]. - Interest income decreased by 60% to $0.6 million for the three months ended September 30, 2025, and by 61% to $1.6 million for the nine months ended September 30, 2025 compared to 2024[222]. Future Outlook - The company anticipates significant cash expenditures for research and development, commercialization of new products, and market expansion[227]. - The company anticipates that general and administrative expenses may increase in absolute dollars in future periods to support business growth[220]. - Future minimum lease payments under non-cancelable operating leases totaled $21.0 million as of September 30, 2025[229]. - The company has not entered into any hedging arrangements to minimize foreign currency exchange rate fluctuations[247]. - The company does not believe that inflation or foreign currency risk had a material effect on its financial condition during the periods presented[248].

Revenue and Financial Performance - For the nine months ended September 30, 2025, the company derived 79% of its revenues from U.S. customers and 21% from international customers, having shipped approximately 95 gigawatts of trackers worldwide [197]. - Total revenue for the nine months ended September 30, 2025, was $1,058.1 million, a 65% increase from $640.6 million in the same period in 2024 [248]. - Revenue for the three months ended September 30, 2025, increased by $162.1 million, or 70%, compared to the same period in 2024, primarily driven by a 120% increase in revenue from Array Legacy Operations [251]. - Revenue from Array Legacy Operations increased by $193.1 million, or 120%, for the three months ended September 30, 2025, primarily due to a 122% increase in volume [252]. - Revenue from STI Operations decreased by $31.0 million, or 44%, for the three months ended September 30, 2025, driven by a 61% decrease in volume despite a 39% increase in ASPs [253]. - Consolidated revenue increased by $417.5 million, or 65%, for the nine months ended September 30, 2025, compared to the same period in 2024, driven by Array Legacy Operations' revenue growth of 87% and STI Operations' growth of 10% [254]. - Revenue from Array Legacy Operations increased by $398.7 million, or 87%, for the nine months ended September 30, 2025, primarily due to a 104% increase in volume, despite a 19% decrease in average selling prices (ASPs) due to commodity price declines [255]. - STI Operations revenue increased by $18.9 million, or 10%, for the nine months ended September 30, 2025, mainly driven by a 12% increase in volume [256]. - Gross profit for the three months ended September 30, 2025, was $105.7 million, a 35% increase from $78.3 million in the same period in 2024 [250]. - Consolidated gross profit increased by $59.9 million, or 27%, for the nine months ended September 30, 2025, but gross margin decreased to 26.4% from 34.2% in the prior year [261]. - Array Legacy Operations gross profit increased by $59.7 million, or 31%, for the nine months ended September 30, 2025, with gross margin decreasing to 29.3% from 41.8% due to a 19% decrease in ASPs and an 11% increase in cost per watt [262]. - Net income for the three months ended September 30, 2025, was $33.5 million, compared to a net loss of $141.4 million in the same period in 2024, representing a turnaround of $174.9 million [248]. Expenses and Investments - Research and development expenses for the three months ended September 30, 2025, were $2.3 million, compared to $1.6 million for the same period in 2024, reflecting an increase in investment in product development [204]. - Total engineering expenses for the nine months ended September 30, 2025, were $13.7 million, up from $12.7 million in the same period in 2024, with R&D activities accounting for $7.2 million and $5.3 million respectively [204]. - Operating expenses for the three months ended September 30, 2025, decreased by 71% to $60.2 million from $210.99 million in the same period in 2024, primarily due to the absence of goodwill impairment [249]. - Consolidated operating expenses increased by $12.1 million, or 30%, for the three months ended September 30, 2025, primarily due to higher personnel-related and acquisition-related expenses [264]. - Cash provided by operating activities was $58.1 million for the nine months ended September 30, 2025, compared to $96.4 million in the same period of 2024 [284]. - Net cash used in investing activities was $179.4 million for the nine months ended September 30, 2025, primarily due to acquisition-related expenses and capital expenditures [286]. Acquisitions and Business Development - The company completed the acquisition of APA Solar for a total purchase consideration of approximately $186.1 million, including an earnout provision estimated at $20.0 million [198]. - The acquisition of APA Solar expands the company's product portfolio to include solar racking, mounting, and foundation systems, addressing evolving industry needs [201]. - The company completed a business combination for a purchase consideration of $186.1 million during the nine months ended September 30, 2025 [298]. - The Purchase Agreement includes Earnout Consideration and Deferred Consideration totaling approximately $40 million [291]. - The maximum Earnout Consideration is 4,686,530 shares of common stock, contingent on APA achieving specific financial performance targets by September 30, 2028 [292]. - Deferred Consideration will be paid in three installments, with the first installment equal to 50% of the Deferred Consideration due within five business days after the first anniversary of the Closing Date [293]. - The company issued 400,000 shares of Series A Redeemable Perpetual Preferred Stock and 9,000,000 shares of common stock for approximately $395.4 million [294]. Market and Regulatory Environment - The One Big Beautiful Bill Act (OBBB) changes the solar Investment Tax Credit (ITC), terminating it for facilities placed in service after December 31, 2027, unless construction begins before July 4, 2026 [208]. - The OBBB imposes foreign entity limitations on claiming the ITC, affecting entities from covered nations like China and Russia, which could impact solar facility claims [208]. - The Section 45X manufacturing production tax credit applies to eligible components, with the company negotiating agreements to share economic benefits with suppliers [212]. - The OBBB did not modify the phase-out of the Section 45X credit but imposed foreign entity limitations, affecting future claims [213]. - The IRS issued guidance on domestic content bonus tax credits, which may cause project delays as customers navigate the requirements [214]. - The OBBB increased the domestic content threshold for solar facilities starting construction after June 16, 2025, impacting business evaluations [215]. - The U.S. Department of Commerce issued AD/CVD orders affecting certain solar photovoltaic cells and modules, with potential cash deposit rates exceeding 250% for imports from specific countries [220][221]. - The ongoing Russian-Ukraine war has increased logistics costs and material availability issues, prompting a reevaluation of procurement strategies [217]. - Disruptions in shipping lanes have led to increased transit times and costs, with the company increasing local sourcing efforts to mitigate delays [218]. - The company faces risks related to project timing, including potential delays due to weather, interest rate fluctuations, and local permitting challenges [205]. - The company has experienced competitive pressures and uncertainties related to tariffs and trade policies that could impact sourcing and pricing of components [207]. Financial Position and Liquidity - As of September 30, 2025, the company had a cash balance of $221.5 million, with $145.3 million available under its $166 million Revolving Credit Facility [277]. - The company completed a private placement of $345 million in aggregate principal amount of 2031 Convertible Notes, resulting in net proceeds of $334.6 million, which were used to repay debt and repurchase Convertible Notes [280]. - The company has contractual obligations and commitments as of September 30, 2025, with no material changes reported [290]. - As of September 30, 2025, the company posted surety bonds totaling approximately $227.4 million, which do not adversely impact liquidity [296]. - The Earnout Consideration was estimated to have a fair value of $20.4 million as of September 30, 2025, using a Monte-Carlo simulation method [301]. - The company is exposed to market risks primarily due to fluctuations in steel and aluminum prices and customer concentrations [303]. - There have been no material changes to the information previously provided under Item 7A of the 2024 Annual Report [304].

Business Performance - LegalZoom reported a 12% increase in business formation transactions for the three months ended September 30, 2025, totaling 126,000 compared to 113,000 in the same period of 2024 [124]. - The number of transactions increased by 2% to 259,000 for the three months ended September 30, 2025, driven by the Formation Nation acquisition and an increase in Annual Report filings [126]. - Total revenue for the three months ended September 30, 2025, was $190,158,000, representing a 13% increase from $168,599,000 in the same period of 2024 [160]. - Subscription revenue increased by 13% to $125,359,000, driven by approximately $5.6 million from the acquisition of Formation Nation and a 10% increase in compliance-related subscriptions [165]. - Transaction revenue rose by 12% to $64,799,000, primarily due to $9.1 million from Formation Nation and increased revenue from Annual Report and Trademark filings [164]. - Total revenue for the nine months ended September 30, 2025 was $565.8 million, a 9% increase from $520.2 million in 2024, with subscription revenue accounting for 64% of total revenue [177]. - Transaction revenue increased by 6% year-over-year, primarily due to $23.4 million from the acquisition of Formation Nation [178]. - Subscription revenue grew by 10% year-over-year, driven by $12.5 million from the acquisition of Formation Nation and a 7% increase in compliance-related subscriptions [179]. Financial Metrics - Average order value rose by 11% to $251 for the three months ended September 30, 2025, compared to $227 in the same period of 2024 [130]. - Average revenue per subscription unit (ARPU) decreased by 3% to $256 as of September 30, 2025, compared to $264 in 2024, attributed to a shift towards lower-priced subscription offerings [136]. - The annual small business retention rate was approximately 57% as of September 30, 2025, influenced by the bundling of lower-retaining subscriptions into business formation offerings [138]. - Gross profit for the three months ended September 30, 2025, was $127,887,000, reflecting a 12% increase from $113,884,000 in the prior year [168]. - Net income for the three months ended September 30, 2025, was $4,509,000, down from $11,051,000 in the same period of 2024 [160]. - The adjusted EBITDA for the nine months ended September 30, 2025, was $122.3 million, with an adjusted EBITDA margin of 22% [216]. - Adjusted EBITDA decreased from $47.1 million for the three months ended September 30, 2024 to $46.3 million for the three months ended September 30, 2025, primarily due to a $15.5 million increase in operating expenses [218]. - Adjusted EBITDA increased from $103.9 million for the nine months ended September 30, 2024 to $122.3 million for the nine months ended September 30, 2025, driven by a $45.6 million increase in revenue [219]. - Free cash flow increased from $64.1 million for the nine months ended September 30, 2024 to $119.9 million for the nine months ended September 30, 2025, primarily due to a $51.0 million increase in net cash provided by operating activities [222]. Expenses and Costs - Cost of revenue for the three months ended September 30, 2025, was $62,271,000, a 14% increase from $54,715,000 in 2024, mainly due to a $5.7 million rise in filing fees [166]. - Operating expenses for the three months ended September 30, 2025, totaled $121,394,000, compared to $97,615,000 in 2024, with sales and marketing expenses being the largest category [160]. - Stock-based compensation expense increased to $28,369,000 for the three months ended September 30, 2025, compared to $15,715,000 in 2024, due to new RSUs granted [161]. - Sales and marketing expenses for the three months ended September 30, 2025 increased by $21.5 million, a 47% increase year-over-year, primarily due to a $10.3 million rise in customer acquisition marketing spend [169]. - Technology and development expenses decreased by $3.7 million, or 16%, for the three months ended September 30, 2025, mainly due to a reduction in headcount [170]. - General and administrative expenses rose by $5.9 million, or 21%, for the three months ended September 30, 2025, driven by a $13.1 million increase in stock-based compensation [171]. - Cost of revenue increased by $9.5 million, or 5%, for the nine months ended September 30, 2025, mainly due to a $11.5 million rise in filing fees related to the Formation Nation acquisition [181]. - General and administrative expenses for the nine months ended September 30, 2025 increased by $32.4 million, or 42%, primarily due to a $39.1 million rise in stock-based compensation [185]. Cash Flow and Liquidity - As of September 30, 2025, the company had cash and cash equivalents of $237.2 million, an increase of $95.1 million from December 31, 2024, primarily due to stock option exercises and cash from operating activities [192]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $144.1 million, up from $93.1 million in the same period of 2024 [204]. - The company reported a net income of $9.4 million for the nine months ended September 30, 2025, with stock-based compensation and other non-cash expenses totaling $114.8 million [206]. - Net cash used in investing activities was $34.1 million, primarily due to the acquisition of Formation Nation for $48.5 million and $24.1 million in property and equipment purchases [208]. - The company utilized $15.0 million in financing activities, mainly for $37.6 million in stock repurchases and a $20.0 million settlement of RSU tax withholding [210]. - The company has a stock repurchase program with approximately $112.0 million remaining for future repurchases as of September 30, 2025 [196]. - The Amended Revolving Facility provides for $100.0 million in available borrowings, with no outstanding borrowings as of September 30, 2025 [197]. - The company anticipates that its available cash and cash equivalents will be sufficient to meet operational cash needs for at least the next twelve months [194]. Economic and Market Factors - LegalZoom's future performance is expected to be influenced by macroeconomic factors, the share of small and medium-sized businesses, and the ability to combine AI with human expertise [119][120]. - The company continues to monitor the impacts of the evolving macroeconomic environment on its business operations [120]. - Inflation has not had a material effect on the company's business, but significant inflationary pressures could harm its financial condition and results of operations [230]. - The foreign currency transaction gain was immaterial during the nine months ended September 30, 2025, with a 10% adverse change in foreign exchange rates expected to be immaterial [228][229]. - The company does not expect to be exposed to fluctuations in interest rates for the foreseeable future due to no outstanding debt subject to interest rate risk [227].