Financial Performance - Revenues for Q3 2025 were $20.3 million, representing a 15.3% increase year-over-year[4] - Net income for Q3 2025 was $1.1 million, or $0.06 per diluted share, compared to $1.0 million, or $0.05 per diluted share in Q3 2024[8] - Adjusted EBITDA for Q3 2025 increased to $2.9 million, up from $2.6 million in the same quarter last year[9] - Net income for the three months ended September 30, 2025, was $1,119 million, compared to a net loss of $613 million for the previous quarter[21] - EBITDA for the three months ended September 30, 2025, was $2,878 million, significantly higher than $1,420 million in the previous quarter[23] - Adjusted EBITDA for the nine months ended September 30, 2025, reached $6,446 million, compared to $7,795 million for the same period in 2024, indicating a decrease of 17.3%[23] Revenue Breakdown - Revenue from the marine end market surged by 31.5% year-over-year, while aerospace revenue rose by 88.3% and power generation revenue grew by 31.4%[5] Cash Flow and Liquidity - Cash flow from operations was $2.4 million for Q3 2025, slightly down from $2.6 million in Q3 2024[9] - The company had $10.3 million in cash and $5.2 million available under credit agreements as of September 30, 2025[4] - Cash and cash equivalents at the end of the period were $10,305 million, down from $12,220 million at the beginning of the period, reflecting a decrease of 15.6%[21] Assets and Liabilities - Total assets increased to $87,138 million as of September 30, 2025, up from $85,584 million at December 31, 2024, representing a growth of 1.83%[19] - Total current liabilities increased to $13,639 million as of September 30, 2025, compared to $11,627 million at December 31, 2024, marking an increase of 17.3%[19] Project Developments - The company is progressing towards a major LNG liquefaction capacity expansion with a new facility planned in Galveston, Texas[2] - A 10-year marine bunkering agreement has been secured with a global marine operator for LNG supply at the Port of Galveston[2] - Capital expenditures increased during Q3 2025 to support engineering and design work for the Galveston LNG project[2] - A final investment decision for the Galveston LNG project is expected in early 2026[5] Accounts and Expenses - The company reported a depreciation expense of $1,842 million for the three months ended September 30, 2025, slightly lower than $1,860 million in the previous quarter[23] - Accounts receivable increased by $2,721 million during the three months ended September 30, 2025, indicating a rise in outstanding customer payments[21] - The company incurred a bad debt expense of $202 million for the three months ended September 30, 2025, compared to $106 million in the previous quarter[21] Stockholders' Equity - The total stockholders' equity decreased to $66,695 million as of September 30, 2025, down from $67,008 million at December 31, 2024, reflecting a decline of 0.47%[19]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission file number 001-36728 ADMA BIOLOGICS, INC. (Exact name of registrant as specified in its charter) Delaware 56-2590442 (Sta ...

Financial Performance - Total revenues for the three months ended September 30, 2025, were $240,000, a decrease of 89.9% compared to $2,380,000 for the same period in 2024[14] - Net loss for the three months ended September 30, 2025, was $163,141,000, compared to a net loss of $213,717,000 for the same period in 2024, representing a 23.6% improvement[14] - For the nine months ended September 30, 2025, the net loss was $395.064 million, an improvement from a net loss of $417.371 million in the same period of 2024, representing a decrease of approximately 5.5%[25] - The basic and diluted net loss per share for the three months ended September 30, 2025, was $(1.17), compared to $(1.56) for the same period in 2024, indicating a 25% reduction in loss per share[91] - Total revenues for the nine months ended September 30, 2025, were $4,486 thousand, down $57,345 thousand from $61,831 thousand in 2024[132] Expenses and Liabilities - Research and development expenses for the nine months ended September 30, 2025, were $367,617,000, a decrease of 8.2% from $400,416,000 for the same period in 2024[14] - The company had total current liabilities of $75,222,000 as of September 30, 2025, down from $119,662,000 as of December 31, 2024, a decrease of 37.1%[12] - Stock-based compensation expenses decreased to $37.866 million in 2025 from $62.616 million in 2024, a reduction of about 39.5%[25] - Total operating expenses for the nine months ended September 30, 2025, were $435,893 thousand, down $95,953 thousand from $531,846 thousand in 2024[132] Cash and Investments - Cash and cash equivalents as of September 30, 2025, were $170,084,000, down from $222,947,000 as of December 31, 2024, reflecting a decrease of 23.6%[12] - The company had $810.7 million in cash, cash equivalents, and investments as of September 30, 2025, which is expected to fund operations for at least the next twelve months[29] - The total cash, cash equivalents, and investments as of September 30, 2025, were $810.7 million[50] - The company expects to fund operations for at least the next 12 months with existing cash and investments[148] Assets and Equity - Total assets decreased to $1,019,453,000 as of September 30, 2025, from $1,398,813,000 as of December 31, 2024, a decline of 27.2%[12] - Total stockholders' equity as of September 30, 2025, was $796,098,000, down from $1,150,385,000 as of December 31, 2024, indicating a decrease of 30.8%[12] - As of September 30, 2025, total financial assets amounted to $801.2 million, a decrease from $1,095.4 million as of December 31, 2024[50] Research and Development - The company is focused on developing medicines for serious infectious diseases and cancer, with a clinical-stage portfolio that includes programs for chronic hepatitis delta and multiple dual-masked T-cell engagers[27] - The ECLIPSE 1 Phase 3 trial for Chronic Hepatitis Delta (CHD) completed enrollment approximately two months ahead of projections, with topline data expected in Q1 2027[109] - The ECLIPSE 2 Phase 3 trial continues to enroll well, with topline data also expected in Q1 2027[109] - The company expects research and development expenses to increase substantially as product candidates advance through clinical studies[121] Collaborations and Agreements - The upfront payment made to Sanofi under the license agreement was $100 million, with an additional $75 million milestone payment made during the three months ended September 30, 2025[66] - The Company has potential future milestone payments to Sanofi totaling up to $1.49 billion based on commercial net sales[67] - The company paid Alnylam $30 million in connection with the Restated Alnylam Agreement, with remaining development and regulatory milestones totaling $145 million[73] - The company is obligated to make substantial payments upon achieving milestone events in strategic collaboration and license agreements[208] Risks and Challenges - The company may require substantial additional funding to finance its operations, and if unable to raise capital when needed, it could be forced to delay or terminate certain research and development programs[177] - The company faces risks related to the lengthy and expensive clinical product development process, which may incur additional costs and delays[170] - The company may encounter difficulties in patient enrollment and retention for clinical studies, which could delay product development and approval[203] - The company has limited prior experience in marketing approved products outside the United States, which subjects it to additional regulatory and operational risks[191] Future Outlook - The company does not expect to generate significant revenue from product candidates until clinical development is completed and regulatory approvals are obtained[113] - The company expects to continue incurring significant expenses and net losses in the foreseeable future as it develops its product candidates and technology platforms[172] - The company anticipates nominal collaboration revenue in 2025 from the GSK Agreement, with potential negative revenue due to ongoing support costs[117]

Financial Performance - Revenue for Q3 2025 reached $83.3 million, a 42.7% increase from $58.4 million in Q3 2024[15] - Gross profit for Q3 2025 was $54.0 million, compared to $36.9 million in Q3 2024, reflecting a gross margin improvement[15] - Net loss for Q3 2025 was $21.4 million, slightly higher than the net loss of $21.0 million in Q3 2024[15] - The company reported a comprehensive loss of $21.2 million for Q3 2025, compared to a comprehensive loss of $21.0 million in Q3 2024[15] - For the nine months ended September 30, 2025, the net loss was $65.727 million, an improvement from a net loss of $72.557 million in the same period of 2024, representing a decrease of approximately 9.4%[21] - Total revenue for the three months ended September 30, 2025, was $83.3 million, a 42.7% increase from $58.4 million in the same period of 2024[62] - Total revenue for the nine months ended September 30, 2025, reached $231.7 million, up 48.1% from $156.3 million in the prior year[62] Expenses and Costs - Research and development expenses for Q3 2025 were $18.2 million, up from $16.6 million in Q3 2024, indicating continued investment in innovation[15] - Selling, general and administrative expenses increased to $59.0 million in Q3 2025 from $42.7 million in Q3 2024, reflecting higher operational costs[15] - Total stock-based compensation recognized for the three months ended September 30, 2025, was $14.5 million, an increase from $8.5 million in the same period of 2024[50] Assets and Liabilities - Total current assets decreased to $454.8 million as of September 30, 2025, down from $481.8 million at December 31, 2024[13] - Total liabilities remained stable at $131.3 million as of September 30, 2025, compared to $131.7 million at December 31, 2024[13] - Cash and cash equivalents were $294.3 million as of September 30, 2025, down from $333.7 million at December 31, 2024[13] - The total stockholders' equity decreased to $380.3 million as of September 30, 2025, from $402.2 million at December 31, 2024[13] - Total inventory as of September 30, 2025, increased to $66.715 million from $56.168 million as of December 31, 2024, reflecting an increase of approximately 18.7%[35] - The allowance for credit losses increased to $2.266 million as of September 30, 2025, compared to $840,000 at the end of 2024, marking a significant increase of 170.5%[34] Cash Flow - Cash used in operating activities for the nine months ended September 30, 2025, was $38.658 million, compared to $66.822 million in 2024, indicating a reduction of about 42.2%[21] - The Company reported net cash provided by financing activities of $6.753 million for the nine months ended September 30, 2025, compared to $9.597 million in 2024, a decrease of approximately 29.3%[21] - The total cash and cash equivalents as of September 30, 2025, were $294.281 million, down from $333.725 million at the end of 2024, representing a decrease of about 11.8%[32] Regulatory and Compliance - The Company received FDA clearance for its next-generation HYDROS Robotic System on August 20, 2024, enhancing its product offerings in the surgical robotics market[23] - The Company plans to adopt new accounting standards related to income tax disclosures in the year ending December 31, 2025, which are not expected to have a material impact on its financial statements[28] - The company determined that new federal tax legislation enacted in July 2025 did not have a material impact on its financials due to a full valuation allowance on deferred tax assets and liabilities[63] Market and Operational Insights - U.S. revenue for the three months ended September 30, 2025, was $73.9 million, representing a 41.5% increase from $52.2 million in 2024[62] - Revenue from handpieces and other consumables in the U.S. increased by 50% to $44.4 million for the three months ended September 30, 2025, compared to $29.6 million in 2024[62] - The company operates as a single operating segment, with no customers accounting for more than 10% of revenue during the nine months ended September 30, 2025[67] - The company's assets are primarily based in the United States, with 89% of revenue coming from the U.S. for the three months ended September 30, 2025[68] Future Commitments - Future minimum annual operating lease payments total $37.6 million, with a present value of future payments at $27.4 million as of September 30, 2025[47] - The Company’s future minimum annual debt repayments total $52.0 million, with a present value of future payments at $51.6 million[44] - The Company’s minimum cash holdings requirement at CIBC stipulates that if cash and cash equivalents are less than $50.0 million, 100% must be maintained at CIBC[42] Interest Rates and Financial Metrics - The weighted-average interest rate for the Term Loan Facility was 6.7% for the period ending September 30, 2025, down from 7.7% in 2024, indicating a decrease of approximately 13%[40] - The Company had 3.7 million stock options outstanding as of September 30, 2025, with an aggregate pre-tax intrinsic value of $79.8 million[51] - As of September 30, 2025, the Company had $13.9 million of unrecognized stock-based compensation expense related to stock options[52] - Employer contributions to the defined contribution retirement savings plan were $0.7 million for the three months ended September 30, 2025, compared to $0.5 million in 2024[72] - The company's exposure to market risks related to interest rates, credit, and foreign currency exchange rates has not changed materially since December 31, 2024[117]

Financial Performance - CF Industries reported net earnings of $1.05 billion for the first nine months of 2025, or $6.39 per diluted share, compared to $890 million, or $4.86 per diluted share in the same period of 2024[6]. - Adjusted EBITDA for the first nine months of 2025 was $2.07 billion, up from $1.72 billion in the first nine months of 2024[6]. - Net sales for the first nine months of 2025 were $5.21 billion, an increase from $4.41 billion in the same period of 2024, driven by higher average selling prices and increased sales volumes[7]. - Net sales for the three months ended September 30, 2025, increased to $1,659 million, up 21.1% from $1,370 million in 2024[30]. - Net earnings attributable to common stockholders for the three months ended September 30, 2025, rose to $353 million, a 27.8% increase compared to $276 million in 2024[30]. - Operating earnings for the nine months ended September 30, 2025, were $1,683 million, a 29% increase from $1,305 million in the same period of 2024[54]. - For the twelve months ended September 30, 2025, net cash provided by operating activities was $2,633 million, an increase from $2,331 million in 2024, resulting in a free cash flow of $1,699 million compared to $1,514 million in the previous year[62]. Production and Sales Volumes - Gross ammonia production for the first nine months of 2025 was approximately 7.6 million tons, compared to 7.2 million tons in the same period of 2024[4]. - Sales volume of ammonia for the nine months ended September 30, 2025, increased to 3,325,000 tons, up from 2,845,000 tons in 2024[33]. - Sales volume by product tons for the three months ended September 30, 2025, was 4,504,000 tons, a decrease from 4,797,000 tons in 2024, while for the nine months, it increased to 14,529,000 tons from 14,196,000 tons[67]. Pricing and Margins - Average selling price per product ton for granular urea increased to $450 in Q3 2025, up 36.4% from $330 in Q3 2024[35]. - Adjusted gross margin for granular urea segment was $271 million for the three months ended September 30, 2025, compared to $233 million in 2024, reflecting a 16.3% increase[35]. - Gross margin for the nine months ended September 30, 2025, was $1,959 million, representing a 28.0% increase from $1,532 million in 2024[30]. - Gross margin for the three months ended September 30, 2025, was $230 million, representing a gross margin percentage of 44.5%, compared to 33.0% in 2024[38]. - Adjusted gross margin for the three months ended September 30, 2025, was $289 million, or 55.9% of net sales, compared to 50.2% in 2024[38]. Costs and Expenses - The average cost of natural gas in the first nine months of 2025 was $3.34 per MMBtu, up from $2.38 per MMBtu in the first nine months of 2024[8]. - Average daily market price of natural gas at the Henry Hub for the nine months ended September 30, 2025, was $3.48 per MMBtu, compared to $2.19 per MMBtu in 2024[30]. - Capital expenditures for the nine months ended September 30, 2025, totaled $724 million, significantly higher than $321 million in 2024[30]. - The company incurred capital expenditures of $347 million in Q3 2025, compared to $139 million in Q3 2024[59]. Shareholder Returns and Dividends - CF Industries completed a $3 billion share repurchase program and initiated a new $2 billion program in October 2025[1]. - CF Industries declared a quarterly dividend of $0.50 per common share, payable on November 28, 2025[44]. Future Outlook and Projects - The company expects full-year 2025 gross ammonia production to be approximately 10 million tons[4]. - CF Industries anticipates continued strong global nitrogen demand through 2025 and into 2026, particularly from India and Brazil[27]. - The Blue Point joint venture is set to construct a low-carbon ammonia production facility, with civil construction expected to start in 2026[24]. - The company is focused on completing projects at its Blue Point Complex, including a low-carbon ammonia production facility, which may exceed current capital expenditure estimates[49]. - CF Industries is focused on decarbonizing its ammonia production network to support the transition to clean energy[46]. Conference and Communication - The company plans to hold a conference call on November 6, 2025, to discuss its third quarter and nine-month results[45].

DOOR is providing 2024 financial and business highlights and certain preliminary, unaudited financial information as of and for periods in 2025, which remains subject to completion when we become current with our SEC filing obligations. 2024 Financial and Business Highlights Exhibit 99.1 Latch (Now DOOR) Continues to Make Progress Towards Becoming Current with SEC Filing Obligations, Files 2024 SEC Reports, and Provides 2024 and Preliminary 2025 Financial Update DOOR continues to work diligently to file its ...

Financial Performance - The company reported net sales of $2,618 million for Q3 2025, a 13% increase compared to $2,326 million in Q3 2024, driven by a 12% increase in volume and a 2% favorable currency impact, partially offset by a 1% decline in price [212][213]. - For the nine months ended September 30, 2025, net sales were $13,491 million, up 4% from $12,930 million in the same period last year, reflecting a 5% increase in volume and a 1% increase in price, partially offset by a 2% unfavorable currency impact [216][217]. - Income from continuing operations after income taxes for Q3 2025 was $(308) million, an improvement from $(519) million in the same quarter last year [212]. - Income from continuing operations after income taxes for the nine months ended September 30, 2025, was $1,741 million, up from $913 million in the same period of 2024 [271]. - The company reported a diluted earnings per share of $(0.46) for Q3 2025, compared to $(0.76) in Q3 2024, while for the nine months ended September 30, 2025, it was $2.54, up from $1.29 in 2024 [276]. Cost and Expenses - Cost of goods sold (COGS) for Q3 2025 was $1,644 million, representing 63% of net sales, compared to $1,565 million (67% of net sales) in Q3 2024, driven by higher volumes and lower commodity prices [220]. - COGS for the nine months ended September 30, 2025, was $6,918 million (51% of net sales), down from $7,033 million (54% of net sales) in the same period last year, due to ongoing cost and productivity actions and lower commodity prices [221]. - Research and Development (R&D) expenses were $351 million (13% of net sales) for Q3 2025, slightly up from $348 million (15% of net sales) in Q3 2024, reflecting increased employee compensation costs [222]. - Selling, General and Administrative (SG&A) expenses were $725 million (28% of net sales) for Q3 2025, compared to $671 million (29% of net sales) in Q3 2024, primarily due to increased commissions and variable compensation [223]. - SG&A expenses increased to $2,632 million (20% of net sales) for the nine months ended September 30, 2025, compared to $2,461 million (19% of net sales) for the same period in 2024 [224]. Shareholder Returns - The company returned approximately $1.1 billion to shareholders during the nine months ended September 30, 2025, through share repurchase programs and common stock dividends [211]. - In January 2025, the company authorized a common stock dividend of $0.17 per share, increasing to $0.18 per share in July 2025, reflecting a 5.9% increase [294]. - Corteva, Inc. announced a $3 billion share repurchase program on November 19, 2024, with 3,401,000 shares repurchased for $250 million and 3,681,000 shares for $270 million during the three and nine months ended September 30, 2025, respectively [295]. - The company completed a $2 billion share repurchase program in Q2 2025, repurchasing 7,815,000 shares for $500 million during the nine months ended September 30, 2025 [296]. - For the full year 2025, the company expects approximately $1 billion in share repurchases under the 2024 and 2022 Share Buyback Plans [297]. Segment Performance - Seed segment net sales increased to $917 million for the three months ended September 30, 2025, from $691 million in 2024, and $8,161 million for the nine months ended September 30, 2025, compared to $7,773 million in 2024 [251]. - Segment operating EBITDA for the Seed segment improved to $(193) million for the three months ended September 30, 2025, from $(320) million in 2024, and increased to $2,512 million for the nine months ended September 30, 2025, compared to $2,126 million in 2024 [251]. - Crop Protection net sales were $1,701 million in Q3 2025, a 4% increase from $1,635 million in Q3 2024, driven by a 5% increase in volume and a 1% favorable currency impact [261]. - Segment operating EBITDA for Crop Protection was $279 million in Q3 2025, up 13% from $246 million in Q3 2024, with margin improvement of approximately 135 basis points [263]. - Crop Protection net sales for the first nine months of 2025 were $5,330 million, up 3% from $5,157 million in the same period of 2024, with a 7% increase in volume [264]. Cash Flow and Liquidity - Cash provided by operating activities for continuing operations was $(941) million for the nine months ended September 30, 2025, an improvement from $(1,871) million in the same period of 2024 [290]. - Cash used for investing activities was $(355) million for the nine months ended September 30, 2025, compared to $(466) million in 2024, driven by reduced capital expenditures [292]. - Cash provided by financing activities was $554 million for the nine months ended September 30, 2025, a decrease from $2,137 million in 2024, primarily due to higher borrowings in 2024 [293]. - The company had access to approximately $6.3 billion in unused credit lines as of September 30, 2025, providing support for short-term liquidity needs [280]. - Total debt increased to $4,373 million as of September 30, 2025, from $2,703 million at December 31, 2024, primarily due to the issuance of Senior Notes in May 2025 [278]. Tax and Other Financial Metrics - The effective tax rate for the nine months ended September 30, 2025, was 21.5% on pre-tax income of $2,218 million, compared to 23.1% on pre-tax income of $1,187 million for the same period in 2024 [234][235]. - Significant items after tax for the nine months ended September 30, 2025, resulted in a benefit of $14 million, compared to a charge of $(219) million in the same period of 2024 [272]. - Other income (expense) improved to $(23) million for the three months ended September 30, 2025, compared to $(107) million in 2024, and $95 million for the nine months ended September 30, 2025, versus $(319) million in 2024 [228][229]. - Interest expense decreased to $46 million for the three months ended September 30, 2025, down from $66 million in 2024, and $134 million for the nine months ended September 30, 2025, compared to $173 million in 2024 [231]. Corporate Developments - The company announced its intent to separate its seed and crop protection businesses into two standalone, publicly traded companies, intended to be a tax-free spin-off for U.S. federal income tax purposes [210]. - The company has not reported any material changes to its contractual obligations outside the ordinary course of business since the 2024 Annual Report [304]. - The company is subject to market risk and utilizes financial instruments, with disclosures available in the 2024 Annual Report [305].

Acquisition and Investments - Armada Hoffler Properties, Inc. completed the acquisition of the remaining partnership interest in the Harbor Point Parcel 4 project on June 10, 2025[163]. - The preferred equity investment in Solis Gainesville II has a minimum interest guarantee of $5.9 million over its life, representing approximately 24 months of interest[164]. - The preferred equity investment in Solis Kennesaw has a minimum interest guarantee of $13.1 million over its life, representing approximately 27 months of interest[168]. - The preferred equity investment in Solis Peachtree Corners has a minimum interest guarantee of $12.0 million over its life, representing approximately 30 months of interest[170]. - The preferred equity investment in Solis North Creek was initially subject to a minimum interest guarantee of $8.9 million over its life[174]. Financial Performance - Net loss attributable to common stockholders was $3.6 million, or $0.04 per diluted share, an improvement from a net loss of $10.4 million, or $0.11 per diluted share, in Q3 2024[177]. - Funds from operations (FFO) increased to $20.2 million, or $0.20 per diluted share, compared to $12.7 million, or $0.14 per diluted share, in Q3 2024[177]. - Normalized funds from operations (Normalized FFO) decreased to $29.6 million, or $0.29 per diluted share, from $31.4 million, or $0.35 per diluted share, in Q3 2024[177]. - Total revenues for Q3 2025 were $96.1 million, a decrease of $91.6 million (48.8%) compared to Q3 2024, and for the nine months ended September 30, 2025, total revenues were $312.0 million, down $253.9 million (44.9%) from the same period in 2024[197]. - FFO attributable to common stockholders for the nine months ended September 30, 2025, was $56.3 million, down from $70.1 million in 2024[284]. - Normalized FFO available to common stockholders for the nine months ended September 30, 2025, was $80.6 million, compared to $91.1 million in 2024[284]. - The net loss attributable to common stockholders for the nine months ended September 30, 2025, was $(6.9) million, compared to a profit of $4.8 million in 2024[284]. Occupancy and Leasing - The balance on the Solis Gainesville II note was $26.5 million as of September 30, 2025, with a cumulative accrued interest of $6.5 million and the development property approximately 90% leased[167]. - The balance on the Solis Kennesaw note was $49.4 million as of September 30, 2025, with a cumulative accrued interest of $8.9 million and the development property approximately 55% leased[169]. - The balance on the Solis Peachtree Corners note was $37.4 million as of September 30, 2025, with a cumulative accrued interest of $7.0 million and the development property approximately 28% leased[171]. - The balance on The Allure at Edinburgh note was $11.9 million as of September 30, 2025, with a cumulative accrued interest of $2.7 million and the development property approximately 98% leased[173]. - The balance on the Solis North Creek note was $29.2 million as of September 30, 2025, with a cumulative accrued interest of $1.4 million and the note fully funded[176]. - Weighted average stabilized portfolio occupancy was 95.7%, with retail occupancy at 96.0%, office occupancy at 96.5%, and multifamily occupancy at 94.2%[177]. - Executed 25 commercial lease renewals and 7 new commercial leases totaling 269,756 net rentable square feet during Q3 2025[177]. Revenue and Expenses - Rental revenues for Q3 2025 increased slightly by $126,000 (0.2%) to $68.7 million compared to Q3 2024, and for the nine months ended September 30, 2025, rental revenues increased by $3.9 million (2.0%) to $197.7 million compared to the same period in 2024[198]. - Multifamily rental revenues for Q3 2025 increased by $2.6 million (17.9%) and by $5.1 million (11.7%) for the nine months ended September 30, 2025, compared to the same periods in 2024, driven by new operations and stabilization[201]. - General contracting and real estate services revenues for Q3 2025 decreased by $91.2 million (79.7%) to $23.2 million compared to Q3 2024, and for the nine months ended September 30, 2025, revenues decreased by $256.4 million (71.6%) to $101.8 million compared to the same period in 2024[202]. - The segment gross profit for general contracting and real estate services decreased by $1.3 million (38.6%) for Q3 2025 and by $7.0 million (37.5%) for the nine months ended September 30, 2025, primarily due to reduced revenue from completed third-party projects[192]. - Real estate financing segment gross profit for Q3 2025 decreased by $648,000 (27.6%) to $1.7 million compared to Q3 2024, and for the nine months ended September 30, 2025, it decreased by $1.7 million (24.2%) to $5.5 million compared to the same period in 2024[194]. Cash Flow and Financing - Net cash provided by operating activities decreased by $53.7 million to $37.5 million for the nine months ended September 30, 2025, compared to $91.2 million in 2024[276]. - Net cash used in investing activities increased by $11.9 million to $(79.5) million for the nine months ended September 30, 2025, primarily due to higher investments in tenant and building improvements[277]. - Net cash provided by financing activities increased by $27.7 million to $19.6 million for the nine months ended September 30, 2025, primarily due to private placement debt issuance[278]. - Interest income for Q3 2025 was $4.2 million, a decrease of $535,000 (11.3%) compared to Q3 2024, and for the nine months ended September 30, 2025, it decreased by $1.4 million (10.1%) to $12.5 million compared to the same period in 2024[197]. - Interest expense for the three months ended September 30, 2025 increased by 6% compared to the same period in 2024 due to increased borrowing for the Solis North Creek investment[215]. Debt and Leverage - Unsecured debt represented 60.2% of total borrowings as of September 30, 2025, up from 55.9% as of September 30, 2024, indicating a strategic shift in financing[224]. - The company has a total consolidated indebtedness of $1,487.3 million as of September 30, 2025, with secured debt amounting to $592.3 million and unsecured debt totaling $895.0 million[263]. - The total leverage ratio must not exceed 60%, or 65% for two consecutive quarters following acquisitions over $100.0 million[238]. - The company is required to maintain a minimum occupancy rate of at least 80% for all unencumbered properties[258]. - The company has a minimum tangible net worth requirement of at least $825.2 million plus 75% of net equity proceeds received after June 30, 2022[258]. Construction and Backlog - Third-party construction backlog as of September 30, 2025, was $83.9 million, with construction gross profit for Q3 at $2.1 million[177]. - The beginning backlog for third-party construction projects was $90.5 million for Q3 2025, down from $302.9 million in Q3 2024, with an ending backlog of $83.9 million for both periods[193]. Compliance and Covenants - The company is currently in compliance with all covenants under its various loan agreements as of September 30, 2025[261]. - The company has made voluntary prepayments on its notes, with a minimum of 5% of the aggregate principal amount required for partial prepayments[259].

Investment Portfolio Composition - As of September 30, 2025, the portfolio included approximately 73.4% senior secured loans, 0.6% unitranche secured loans, 8.7% junior secured loans, and 17.3% equity investments, compared to December 31, 2024, when the portfolio included approximately 78.3% senior secured loans, 0.8% unitranche secured loans, 6.5% junior secured loans, and 14.4% equity investments [268]. - The investment objective is to maximize total return to stockholders through investment in senior secured, unitranche secured, and junior secured debt, with investments generally ranging between $2.0 million and $35.0 million each [268]. - As of September 30, 2025, the weighted average annualized contractual coupon yield for senior secured loans was 10.4%, while the total yield was 9.9% [280]. - The fair value of senior secured loans decreased to $264.7 million, representing 73.4% of total investments, down from $358.0 million or 78.3% as of December 31, 2024 [282]. - As of September 30, 2025, 79.5% of investments were rated Grade 2, indicating an acceptable level of risk, while 15.6% were rated Grade 3, indicating below-expectation performance [287]. - Investments on non-accrual status totaled $12.5 million at fair value, representing 3.5% of total investments as of September 30, 2025 [287]. Investment Activity - During the three months ended September 30, 2025, the company invested $9.0 million in 17 existing portfolio companies and had $15.2 million in aggregate sales and principal repayments, resulting in a net decrease in investments of $6.2 million for the period [277]. - For the nine months ended September 30, 2025, the company invested $7.6 million in one new portfolio company and $21.3 million in 59 existing portfolio companies, with $120.2 million in aggregate sales and principal repayments, resulting in a net decrease in investments of $91.3 million for the period [278]. - The company has not made investments in any new portfolio companies during the three months ended September 30, 2025 [277]. - During the nine months ended September 30, 2024, the company invested $27.6 million in six new portfolio companies and $44.1 million in 51 existing portfolio companies, resulting in a net decrease in investments of $14.6 million [280]. Financial Performance - The company's total investment income for the three months ended September 30, 2025, was $8.2 million, a decrease from $15.7 million in the same period of 2024 [288]. - For the nine months ended September 30, 2025, total investment income was $29.7 million, down from $46.5 million in 2024 [289]. - The net investment income before income taxes for the three months ended September 30, 2025, was $1.9 million, compared to $6.6 million in 2024 [288]. - The company reported a net realized loss on investments of $2.4 million for the three months ended September 30, 2025 [288]. - Total investment income decreased by $7.5 million (47.8%) and $16.8 million (36.2%) for the three and nine months ended September 30, 2025, compared to the same periods in 2024, primarily due to lower interest income, PIK interest income, and dividend income [291]. - For the three months ended September 30, 2025, the net increase (decrease) in net assets resulting from operations was $(1.1) million, compared to a net increase of $5.0 million in 2024 [303]. - For the nine months ended September 30, 2025, the net increase (decrease) in net assets resulting from operations was $(2.5) million, compared to a net increase of $11.4 million in 2024 [304]. Operating Expenses - The primary operating expenses include management and incentive fees to MC Advisors and other operating costs, including interest expense on indebtedness [275]. - Total operating expenses decreased by $2.8 million (30.9%) and $7.3 million (26.4%) during the three and nine months ended September 30, 2025, compared to the same periods in 2024, mainly due to lower interest and other debt financing expenses [294]. Debt and Liquidity - As of September 30, 2025, the company had $3.5 million in cash and cash equivalents, $82.8 million of total debt outstanding on the revolving credit facility, and $130.0 million on the 2026 Notes [305]. - The asset coverage ratio based on aggregate borrowings outstanding was 181% as of September 30, 2025, compared to 165% as of December 31, 2024 [306]. - For the nine months ended September 30, 2025, the company experienced a net decrease in cash and cash equivalents of $5.5 million, with operating activities providing $92.7 million [307]. - The company reduced its commitment of the Revolving Credit Facility from $255.0 million to $175.0 million on August 20, 2025 [313]. - The outstanding borrowings under the Revolving Credit Facility were accruing at a weighted average interest rate of 6.9% as of September 30, 2025, compared to 7.1% as of December 31, 2024 [317]. Market Conditions and Risks - Increased competition in the middle-market lending space has resulted in lower yields and weaker financial covenants for new assets [351]. - Middle market direct lending has historically outperformed U.S. high yield bonds and U.S. traded loans, generating considerable yield premiums during various economic cycles [1]. - Interest coverage ratios have increased above 2024 levels, indicating borrowers' earnings power sufficiently satisfies debt service obligations [1]. - U.S. inflation rates remain above historical levels, increasing costs for labor, energy, and raw materials, which could adversely affect portfolio companies' profit margins [380]. Valuation and Accounting - The Valuation Designee uses a multi-step valuation process for investments lacking readily available market quotations, including independent appraisals [2]. - As of September 30, 2025, the fair value of the investment portfolio was determined in accordance with GAAP and the company's valuation procedures [2]. - The company is currently evaluating the impact of new accounting standards but does not expect a material impact on its consolidated financial statements [2]. - The company is subject to financial market risks, including interest rate risk and inflation, which may affect the prices of securities held [2].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 | Securities registered pursuant to Section 12(b) of the Act: | | | | --- | --- | --- | | | Trading | | | Title of each class | Symbol(s) | Name of each exchange on which registered | | Common stock, par value $0.001 per share | ACVA | New York Stock Exchange | Indicate by check m ...