Financial Results - KULR Technology Group, Inc. announced financial results for Q3 2025, with specific figures to be detailed in the press release[5] - The report was filed on November 18, 2025, indicating the date of the earliest event reported[2] - The press release is attached as Exhibit 99.1, providing detailed financial data and insights[11] Company Information - The company is listed on NYSE American LLC under the trading symbol KULR[3] - KULR Technology Group is classified as an emerging growth company, which may influence its financial reporting standards[4] - The company’s principal executive offices are located in Webster, Texas[2] Operational Highlights - The press release includes recent operational highlights, which may impact future performance[7] - The financial results and operational updates are not deemed "filed" under the Securities Exchange Act, indicating a specific regulatory compliance approach[10] Investor Communication - The company utilizes various social media channels for public disclosures, enhancing investor communication[9] - The report emphasizes the importance of reviewing the company's website and social media for material information updates[9]

Financial Performance - Total revenue for Q4 FY25 was $307 million, a slight increase from $305 million in Q4 FY24[7] - GAAP net income for Q4 FY25 was $49 million, or $0.51 per diluted share, down from $59 million, or $0.61 per diluted share in Q4 FY24[7] - Non-GAAP net income for Q4 FY25 was $96 million, or $0.99 per diluted share, compared to $78 million, or $0.81 per diluted share in Q4 FY24[7] - Full year FY25 total revenue reached $1.35 billion, up from $1.27 billion in FY24[7] - Full year FY25 GAAP net income was $255 million, or $2.62 per diluted share, compared to $262 million, or $2.69 per diluted share in FY24[7] - Non-GAAP full year net income for FY25 was $414 million, or $4.24 per diluted share, compared to $369 million, or $3.79 per diluted share in FY24[7] - Total revenue for the fiscal quarter ended September 26, 2025, was $307,024 thousand, a slight increase from $304,806 thousand in the same quarter of 2024, representing a growth of 0.7%[24] - Licensing revenue for the fiscal year ended September 26, 2025, reached $1,248,017 thousand, up from $1,181,794 thousand in 2024, marking a year-over-year increase of 5.6%[30] - Gross profit for the fiscal year ended September 26, 2025, was $1,188,998 thousand, compared to $1,133,225 thousand in 2024, reflecting a growth of 4.9%[24] - Operating income for the fiscal quarter ended September 26, 2025, was $29,677 thousand, down from $46,354 thousand in the same quarter of 2024, a decrease of 36.0%[24] - Net income attributable to Dolby Laboratories, Inc. for the fiscal year ended September 26, 2025, was $255,018 thousand, a decrease from $261,825 thousand in 2024, representing a decline of 2.6%[24] - GAAP net income for Q4 2025 was $49.332 million, down from $58.570 million in Q4 2024, while non-GAAP net income increased to $96.252 million from $78.436 million[32] - GAAP diluted earnings per share for Q4 2025 was $0.51, compared to $0.61 in Q4 2024, while non-GAAP diluted earnings per share rose to $0.99 from $0.81[32] - For fiscal year 2025, GAAP net income was $255.018 million, slightly down from $261.825 million in fiscal year 2024, with non-GAAP net income increasing to $413.511 million from $369.016 million[32] Cash Flow and Assets - Cash flows from operations for FY25 were $472 million, an increase from $327 million in FY24[7] - Cash and cash equivalents increased to $701,893 thousand as of September 26, 2025, from $482,047 thousand in 2024, an increase of 45.5%[26] - Total current assets rose to $1,388,261 thousand as of September 26, 2025, compared to $1,194,417 thousand in 2024, indicating an increase of 16.2%[26] - The company reported a net cash provided by operating activities of $472,198 thousand for the fiscal year ended September 26, 2025, compared to $327,252 thousand in 2024, an increase of 44.4%[28] Expenses and Liabilities - Research and development expenses for the fiscal year ended September 26, 2025, were $261,792 thousand, slightly down from $263,663 thousand in 2024, a decrease of 0.7%[24] - Total liabilities decreased to $595,814 thousand as of September 26, 2025, from $623,035 thousand in 2024, a reduction of 4.4%[26] - Stock-based compensation for fiscal year 2025 amounted to $128.514 million, up from $119.825 million in fiscal year 2024[32] - The company reported restructuring charges of $6.128 million in Q4 2025, compared to a credit of $(1.290) million in Q4 2024[32] Future Projections - Dolby expects Q1 FY26 total revenue to range from $315 million to $345 million[11] - For FY26, total revenue is projected to be between $1.390 billion and $1.440 billion[11] - The estimated GAAP gross margin for Q1 2026 and fiscal 2026 is projected at 88.0%, with a non-GAAP gross margin of 90.0%[33] - GAAP operating expenses for Q1 2026 are estimated between $235 million and $245 million, while non-GAAP operating expenses are projected between $195 million and $205 million[33] - The GAAP diluted earnings per share for Q1 2026 is estimated to be between $0.39 and $0.54, with non-GAAP diluted earnings per share projected between $0.79 and $0.94[33] - The effective tax rate for Q1 2026 is expected to be 23.0%, with a non-GAAP effective tax rate of 21.0%[33] - The weighted-average shares outstanding for diluted earnings per share in Q1 2026 is estimated at 96,800 thousand[33] Dividends - Dolby announced a cash dividend of $0.36 per share, payable on December 10, 2025[9]

Energy Storage and Robotics - KULR Technology Group reported a focus on energy storage systems and robotics, with the KULR ONE® platform as the strategic core of its business[142] - The KULR ONE® platform includes various offerings such as K1 Space, K1 Guardian, K1 Max, and K1 Air, targeting sectors like aerospace, defense, and energy storage[144] - KULR's battery management system (kBMS) is designed for both space and terrestrial applications, emphasizing safety and performance under extreme conditions[157] - The KULR ONE® Max platform is engineered for grid energy storage and AI data center backup, meeting UL 9540/9540A safety standards[151] - KULR has expanded into low-volume production of custom lithium-ion batteries, enhancing capabilities for the commercial space and defense sectors[177] - The company acquired intellectual property from Vibetech International to enhance its energy management solutions, focusing on reducing energy loss from vibrations[178] - KULR's kBMS will integrate with Nvidia Jetson to create KULR Core™, enabling AI capabilities for battery management and mission autonomy[160] - KULR's testing capabilities for cells and batteries have been significantly expanded over the last three years, focusing on abuse, electrical, and environmental testing[175] - KULR VIBE technology demonstrated a 23% increase in battery life and a 45% lift increase in a mission-critical drone application[179] - KULR's SafeCASE technology addresses the battery recycling market, which is expected to reach over $77 billion by 2034[185] - KULR's thermal management solutions are critical for the aerospace and defense industries, which are projected to be worth nearly $3 trillion in 30 years[186] Financial Performance - Total revenue for the three months ended September 30, 2025, was $6,884,840, representing an increase of $3,699,062 or 116% compared to $3,185,778 in the same period of 2024[209] - Revenue from product sales during the three months ended September 30, 2025, increased by $859,728 or 112% compared to the same period in 2024, driven by a new client base generating more significant revenue per contract[210] - Revenue from mining digital assets for the three months ended September 30, 2025, was $4,396,603, with a total of 55.70 bitcoin earned from mining operations since the initial contract on March 7, 2025[216] - Research and development expenses for the three months ended September 30, 2025, were $2,323,010, an increase of $1,090,677 or 89% compared to the same period in 2024, due to planned increases in R&D services and new hires[223] - Selling, general and administrative expenses for the three months ended September 30, 2025, were $6,263,803, representing an increase of $3,528,384 or 129% compared to $2,735,419 in the same period of 2024[227] - Gross profit for the three months ended September 30, 2025, was $628,880, a decrease of $1,628,572 or 72% compared to $2,257,452 in the same period of 2024, with gross profit margins dropping from 71% to 9%[220] - Bad debt expenses for the three and nine months ended September 30, 2025, were $780,643, attributed to the write-off of accounts receivable associated with the company's Investee[229] - Impairment of equipment deposits for the nine months ended September 30, 2025, was $1,355,174, with no impairment expenses recorded in the same period of 2024[230] - Other income for the three months ended September 30, 2025, was $1,764,661, an increase of $2,058,125 compared to $(293,464) in the same period of 2024, primarily due to a $6,837,563 unrealized gain on Bitcoin holdings[231] - For the nine months ended September 30, 2025, other income increased by $11,204,070, primarily due to a $14,456,623 unrealized gain on Bitcoin holdings[232] Bitcoin and Mining Operations - KULR has deployed 3,570 Bitmain S19 XP 140T Bitcoin mining machines, increasing operational capacity to 750 petahash per second (PH/s)[201] - The company purchased 783.81 Bitcoin at an average cost of $101,683 per Bitcoin, totaling $79,700,002 during the nine months ended September 30, 2025[190] - KULR entered into a Master Loan Agreement with Coinbase for a revolving credit facility of up to $20 million[199] - The company issued 9,420,337 shares of common stock for aggregate gross proceeds of $107,311,618 during the nine months ended September 30, 2025[193] - KULR's Xero Vibe fan technology aims to improve cooling efficiency and reduce power consumption in server and data centers[182] - The company has adopted Bitcoin as its primary treasury reserve asset and plans to continue accumulating Bitcoin without a specific target[233] - As of September 30, 2025, the company held Bitcoin valued at $120,523,261, compared to $20,281,184 as of December 31, 2024, representing a significant increase[237] - Net cash used in operating activities for the nine months ended September 30, 2025, was $31,039,539, compared to $12,498,818 for the same period in 2024[238] - Net cash used in investing activities during the nine months ended September 30, 2025, was $85,499,202, primarily related to investments in digital assets of $79,700,002[239] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $107,295,479, significantly higher than $12,427,476 in 2024, mainly due to proceeds from ATM equity financings[241] - The company entered into multiple lease agreements for Bitcoin mining machines, with total lease costs amounting to $8,556,045[234] - The average value of Bitcoin earned through machine lease agreements was $109,254, with a total of 55.70 Bitcoin mined[234] - As of September 30, 2025, cash balances were $20,588,596, down from $29,831,858 as of December 31, 2024[237] - The company repaid the remaining balance of the loan payable on October 15, 2025, improving its liquidity position[243] Partnerships and Collaborations - The company has partnered with Lockheed Martin and Leidos to develop technologies for hypersonic vehicles and other defense systems[188] - The company aims to convert early design partnerships into long-term production contracts, reinforcing its core mission of delivering safe and high-performance energy solutions[166]

Capital Management and Growth - As of October 1, 2025, Golub Capital had over $85.0 billion of capital under management, indicating significant growth in assets[22]. - As of September 30, 2025, the total investments at fair value amounted to $8,769,389,000, an increase from $8,235,411,000 in 2024, representing a growth of 6.5%[49]. Market Position and Relationships - Golub Capital has closed deals with over 420 middle-market sponsors and repeat transactions with over 280 sponsors, showcasing strong market relationships[30]. - The target market includes small and middle-market companies in the U.S. with annual revenues between $10 million and $2.5 billion, representing a significant growth segment[24]. - The company has identified increased competition for direct lending to middle-market businesses, which may affect pricing terms for potential investments[28]. Investment Strategy and Risk Management - The company focuses on recession-resistant industries, aiming to generate strong risk-adjusted net returns through a diversified portfolio[33]. - The equity cushion sought by GC Advisors is generally between 35% and 45% of total portfolio capitalization, emphasizing risk management[38]. - Middle-market investments have historically generated premium yields compared to large corporate loans, particularly in uncertain market environments[28]. - GC Advisors utilizes a disciplined investment and underwriting process to minimize credit losses through effective due diligence and monitoring[31]. - The investment strategy focuses on minimizing downside risk by selecting investments with low loss probabilities and negotiating favorable covenants[64]. Investment Performance and Monitoring - The internal performance ratings distribution shows that 87.6% of investments were rated 4, indicating an acceptable level of risk, while 9.6% were rated 3, suggesting below-expectation performance[49]. - The company utilizes a monitoring template to assess investment performance and compliance with standards, emphasizing active portfolio monitoring[46]. Financial Management and Fees - The incentive fee rates were reduced from 20.0% to 15.0%, and the incentive fee cap was also reduced from 20.0% to 15.0% under the new Investment Advisory Agreement approved on June 3, 2024[80]. - The base management fee rate was reduced from 1.375% to 1.0% effective July 1, 2024[80]. - The base management fee is calculated at an annual rate equal to 1.0% of the average adjusted gross assets at the end of the two most recently completed calendar quarters[81]. Regulatory Compliance and Risk Factors - The company is subject to risks associated with the current interest rate environment, which could affect the cost of capital and net investment income[74]. - The company is exposed to credit and default risk, with portfolio companies potentially unable to repay or refinance outstanding principal[76]. - Economic recessions or downturns could impair portfolio companies, leading to defaults that harm operating results[74]. - The company must ensure that at least 70% of its total assets are qualifying assets as defined under the 1940 Act[125]. - The company is required to maintain a bond issued by a reputable fidelity insurance company to protect against larceny and embezzlement[142]. Taxation and Distribution Requirements - To qualify as a RIC, the company must distribute at least 90% of its investment company taxable income as dividends to stockholders[153]. - The company is subject to a 4% nondeductible federal excise tax on any undistributed income or capital gains[157]. - The company must derive at least 90% of its gross income from specific sources, including dividends and interest, to maintain RIC status[155]. - Distributions of net capital gains designated as "capital gain dividends" will be taxable to U.S. stockholders as long-term capital gains at a maximum rate of either 15% or 20%[173]. Interest Rate Exposure - The weighted average floor on loans with floating interest rates was 0.78% as of September 30, 2025[650]. - A hypothetical 200 basis points increase in interest rates could result in a net increase in investment income of $84,104,000[652]. - The company has entered into interest rate swaps with floating rate provisions based on SOFR, indicating exposure to interest rate fluctuations[653]. - The company expects future loans to also have floating interest rates, which are typically based on SOFR[650].

Revenue Concentration and Customer Dependence - In fiscal year 2025, one customer accounted for 18.0% of the company's revenue, all from the Medical segment, while the top ten customers collectively represented approximately 52% of total revenue[95] - The company generated significant accounts receivables, with one customer representing 14.0% of accounts receivables as of October 3, 2025, indicating potential risks if this customer defaults[96] - More than half of the company's revenue is generated from international customers, accounting for approximately 70%, 68%, and 69% of total revenues in fiscal years 2025, 2024, and 2023 respectively[106] Market and Competitive Challenges - The company faced significant challenges due to tariffs imposed by the United States, which increased costs and lowered gross margins, particularly affecting competitiveness against non-imported products[87] - The company has experienced pricing pressures and margin erosion due to intense competition, with major OEM customers also manufacturing their own components[98] - Changes in customer order forecasts have led to excess inventory and slowdowns in sales, complicating demand predictions[97] - The company has faced challenges in meeting customer needs and demands, particularly when the U.S. Dollar is strong against international currencies, impacting revenue and market share[101] Operational Risks and Supply Chain Issues - Supply chain disruptions and inflation have impacted the company's ability to manufacture products, leading to increased costs and potential delays in product delivery[120] - Material shortages and delays have caused the company to temporarily stop production of certain products, affecting sales opportunities[121] - The company is vulnerable to natural disasters and other disruptions that could significantly affect operations and product shipments[124] Regulatory and Compliance Challenges - Compliance with FDA regulations is critical; failure to do so could result in production shutdowns and financial penalties[134] - Obtaining regulatory clearances for new products is time-consuming and uncertain, impacting market introduction[137] - International regulatory compliance is costly and can delay product marketing, affecting business operations[141] - The company faces substantial litigation risks related to intellectual property rights, which could divert management resources[132] - The company must file timely reports with regulatory authorities to avoid sanctions and maintain market authorizations[144] Financial and Economic Factors - Total combined indebtedness as of October 3, 2025, was approximately $369.9 million, primarily consisting of 7.875% Senior Secured Notes due 2027[166] - Changes in tax laws, including a new requirement effective in 2023 for capitalization of research expenditures, significantly increased cash tax expense, expected to continue until normalizing in fiscal year 2027[153] - The company’s ability to respond to economic changes is limited by significant operational and financial restrictions imposed by its Credit Agreement and Senior Secured Notes[166] - The company may face challenges in raising additional debt or equity financing, which could restrict its operational flexibility and ability to compete effectively[168] - Adverse economic developments could lead to reduced customer spending, impacting net sales and cash flow[171] Environmental and Social Governance - Compliance with environmental laws may impose significant costs and liabilities, including cleanup obligations related to hazardous substances[162] - Future changes in environmental laws could increase operational costs, particularly in the EU where manufacturers may bear disposal costs for products at the end of their useful life[164] - The company is subject to evolving environmental, social, and governance regulations that could expose it to various risks and affect its reputation[176] - The company faces risks related to compliance with customer procurement policies that require adherence to social and environmental provisions[177] Internal Controls and Management Challenges - The company may incur substantial costs related to legal proceedings, which could disrupt operations and adversely impact financial results[113] - The company faces challenges in developing and introducing new products due to complex quality assurance processes, which could delay customer orders[104] - The company may face challenges in maintaining effective internal controls, which could negatively impact financial reporting and investor confidence[172] - The competitive labor market has led to increased compensation-related costs, impacting the company's ability to attract and retain key personnel[175] Goodwill and Impairment Issues - As of October 3, 2025, the company's goodwill was $198.4 million, with a recorded goodwill impairment charge of $93.9 million during the three months ended July 4, 2025[174] - The company’s goodwill impairment analysis is sensitive to key assumptions, and further impairment charges may be necessary in the future[174]

Business Segments - Hologic operates in four segments: Diagnostics, Breast Health, GYN Surgical, and Skeletal Health[19] - The Diagnostics segment includes molecular diagnostic assays for STDs, HPV, and viral load tests for Hepatitis B and C, among others, utilizing advanced instrumentation systems like Panther and Panther Fusion[20] - The Breast Health segment offers 3D digital mammography systems and AI-based image analysis software, enhancing breast imaging and biopsy procedures[21] - GYN Surgical products include systems for hysteroscopic tissue removal and endometrial ablation, aimed at treating conditions like abnormal uterine bleeding[22] - The Skeletal Health segment features the Horizon DXA system for bone density evaluation, with plans to discontinue the Fluoroscan Insight FD systems effective fiscal 2026[23] Acquisition and Financial Considerations - Hologic announced a proposed acquisition by Blackstone and TPG for $76.00 per share, with potential total consideration of $79.00 per share based on future revenue metrics[28] - The company entered into a definitive agreement to be acquired by Blackstone and TPG for $76.00 per share in cash, with a potential total consideration of $79.00 per share including a contingent value right[112] - The merger is expected to close in the first half of calendar year 2026, subject to stockholder approval and regulatory approvals[112] - Hologic has never declared or paid cash dividends and plans to retain earnings for growth and debt repayment[204] - The company has a stock repurchase program authorized for up to $1.5 billion, with $937.5 million remaining as of September 27, 2025[206] Product Development and Innovation - The company emphasizes the development of proprietary technologies such as Transcription-Mediated Amplification (TMA) for rapid nucleic acid testing, yielding results in hours[37] - Hologic's assay portfolio includes a range of tests for respiratory infections and gastrointestinal pathogens, performed on the Panther and Panther Fusion systems[33] - The Genius Digital Diagnostics System, featuring the Genius Cervical AI Algorithm, received FDA marketing clearance in January 2024, enhancing diagnostic accuracy for cervical cancer detection[43][44] - The Breast Cancer Index test is now included in clinical practice guidelines as the only gene expression assay predicting benefit from extended endocrine therapy for early-stage HR+ breast cancer patients[46] - The Dimensions platform for mammography includes the 3D Mammography system, which has been shown to be superior to 2D digital mammography alone for screening and diagnostics[47] - The 3DQuorum technology reduces the number of 3D images to review by two-thirds, saving an estimated average of one hour per eight hours of daily image interpretation time[48] - The Affirm biopsy systems provide minimally invasive options for breast biopsy, allowing for outpatient procedures under local anesthesia[50][51] - The NovaSure system utilizes Smart-Depth technology for customized endometrial ablation, improving treatment for abnormal uterine bleeding[54] - The Horizon DXA Systems assist in diagnosing osteoporosis, particularly in post-menopausal women, by measuring bone density[60] Market Strategy and Competition - The company utilizes a combination of direct sales and independent distributors to market its products, enhancing its reach in the healthcare sector[19] - The company’s sales strategy includes targeting specific customer segments in Diagnostics, Breast Health, GYN Surgical, and Skeletal Health markets, with no single customer accounting for more than 10% of consolidated revenues in fiscal years 2023-2025[62][63] - Primary competitors in the Diagnostics business include Roche Diagnostics, Abbott Laboratories, and Cepheid, with competition also coming from various diagnostics companies[69] - The Breast & Skeletal Health business faces competition from large imaging companies like Siemens Healthineers and GE Healthcare[70] - The company relies on strategic relationships with key distributors for sales, and the loss of these relationships could adversely affect revenues[171] Regulatory and Compliance Issues - The FDA regulates the manufacture and sale of medical devices, requiring compliance with various standards and regulations[87] - The Biotheranostics laboratory is subject to CLIA regulations, which require adherence to specific standards for laboratory operations[91] - The company is subject to extensive regulations for its medical devices and IVDs, requiring compliance with various international standards and approvals[93] - The company faces risks related to evolving healthcare policies and reimbursement practices, which could significantly impact market acceptance of its products[100] - The company anticipates increased scrutiny from regulators regarding cybersecurity and AI, which may lead to higher compliance costs[96] - The company is subject to restrictions under the Merger Agreement that could adversely affect its business operations and relationships[116] - The company is subject to environmental, health, and safety laws, which may require significant expenditures for compliance and could adversely affect operations[134] - Compliance with multiple regulators adds complexity and cost to manufacturing processes, with potential negative impacts from regulatory inspections[123] Financial Risks and Liabilities - As of September 27, 2025, the company had approximately $2.5 billion in aggregate principal of indebtedness outstanding, which may limit operational flexibility and affect financial results[179] - Approximately $1.2 billion of the company's indebtedness is subject to floating interest rates, increasing vulnerability to higher interest payments[183] - The company has significant contractual obligations and deferred tax liabilities that may impact financial flexibility[180] - The company may face challenges in generating sufficient cash flow to service all indebtedness and obligations, which could necessitate refinancing or other financial strategies[182] - The company recorded a tariff expense of $9.5 million in fiscal 2025, with estimated quarterly direct tariff costs expected to be between $10 million and $14 million if maintained at current levels[141] Operational Challenges - The healthcare industry is highly competitive, with significant pressure on average selling prices and overall procedure rates due to managed care and declining reimbursement rates[67] - Supply chain constraints and inflation have materially affected the company's ability to procure raw materials, particularly semiconductor chips, impacting manufacturing and costs[164] - The company relies on a limited number of suppliers for key components, exposing it to risks associated with production delays and quality control issues[165] - The company faces intense competition in its markets, with potential impacts from new product introductions and advancements in artificial intelligence and machine learning capabilities[150] - The company faces challenges from global supply chain shortages, which could adversely affect its ability to manufacture and deliver products on time[164] Employee and Organizational Insights - As of September 27, 2025, the company had 7,070 full-time employees, with approximately 4,055 in the U.S. and 3,015 outside the U.S.[102] - The company has been conducting annual employee engagement surveys since 2015, with a focus on maintaining a talented and engaged workforce[103] - The company’s compensation programs include various health plan options, performance incentives, and retirement savings programs aimed at attracting and retaining top talent[104] Future Outlook and Market Conditions - Macroeconomic uncertainties, including inflation and rising interest rates, may adversely affect demand for the company's products and services[140] - Future pandemics or health crises may create significant market volatility and uncertainty, impacting business operations and healthcare activity globally[169] - The evolving legal landscape around artificial intelligence and machine learning may entail significant costs or limit product capabilities[125] - Changes in international trade policies and tariffs could negatively impact the company's ability to sell products in certain markets[141] - The successful commercialization of new products is subject to the establishment of reimbursement codes, which can delay market entry[154]

Revenue Performance - Fourth quarter revenue reached $229 million, up 11% year-over-year, driven by global CT tube sales in the Medical segment and a 25% increase in Industrial segment sales[3]. - Fiscal year 2025 revenue grew 4% year-over-year to $845 million, with non-GAAP EBITDA increasing 37% to $122 million and non-GAAP EPS rising 73% to $0.90[4]. - Medical segment revenue for Q4FY25 was $152 million, up 5% year-over-year, while Industrial segment revenue was $77 million, up 25% year-over-year[3]. - Revenues increased by 11.3% from $205.7 million in the prior year to $228.9 million[20]. Profitability Metrics - Non-GAAP gross margin for Q4FY25 was 34%, compared to 33% in Q4FY24, and non-GAAP operating margin was 10%[3]. - Gross profit rose to $77.8 million, up from $67.1 million, reflecting a gross margin improvement from 32.6% to 34.0%[20]. - Non-GAAP operating income increased to $23.1 million, compared to $14.5 million in the previous year, with a non-GAAP operating margin of 10.1%[21]. - The company reported an operating income of $19.6 million for the quarter, compared to $10.9 million in the same quarter last year[21]. Cash Flow and Liquidity - Cash flow from operations was $8 million in Q4FY25, with cash, cash equivalents, and marketable securities totaling $155 million at the end of FY25[5]. - Cash and cash equivalents decreased from $168.7 million to $145.0 million, a decline of approximately 14.1%[19]. Guidance and Future Outlook - Guidance for Q1 FY26 expects revenues between $200 million and $215 million, with non-GAAP net earnings per diluted share projected between $0.05 and $0.25[6][8]. - The company advanced key growth initiatives, including innovative technologies like photon counting for CT and the launch of a radiographic detector from a new facility in India[4]. Expenses and Liabilities - Total operating expenses for FY25 were $318.3 million, with research and development expenses at $91.1 million[17]. - Current liabilities decreased slightly from $195.9 million to $187.2 million, a reduction of about 3.6%[19]. - Long-term debt decreased from $397.1 million to $366.0 million, a decline of approximately 7.8%[19]. Stockholder Equity and Assets - Total stockholders' equity decreased from $543.2 million to $486.6 million, a drop of about 10.4%[19]. - Total assets decreased from $1,213.6 million to $1,107.4 million, a decline of approximately 8.7%[19]. Net Income and Adjustments - GAAP net income for Q4FY25 was $0.29 per diluted share, while GAAP net loss for FY25 was $(1.70) per diluted share[7]. - Net income attributable to Varex for the three months ended September 27, 2024, was $12.2 million, compared to a loss of $51.1 million in the same period last year[22]. - Non-GAAP net income for the twelve months ended October 3, 2025, was $37.3 million, up from $21.2 million in the previous year[22]. - Non-GAAP diluted net income per share for the twelve months ended October 3, 2025, was $0.90, compared to $0.52 in the previous year[22]. Other Financial Metrics - Adjusted EBITDA for the three months ended September 27, 2024, was $34.9 million, compared to $22.6 million in the same period last year[22]. - Interest expense for the twelve months ended October 3, 2025, was $35.4 million, an increase from $29.6 million in the previous year[22]. - Restructuring charges for the three months ended September 27, 2024, were $0.2 million, down from $1.2 million in the same period last year[22]. - Impairment of goodwill for the twelve months ended October 3, 2025, was $93.9 million, indicating significant challenges in asset valuation[22]. - Non-ordinary course litigation expenses for the twelve months ended October 3, 2025, totaled $7.4 million, compared to $5.2 million in the previous year[22]. Non-GAAP Measures - The company emphasizes the importance of non-GAAP measures for assessing ongoing operations and providing transparency in financial performance[24].

Financial Performance - Total revenues decreased by $111.5 million to $186.1 million for the three months ended March 31, 2025, compared to $297.6 million for the same period in 2024, representing a decline of 37.5%[348]. - Revenues from services and fees fell by $55.2 million, with significant decreases in the Capital Markets segment ($35.1 million) and Communications segment ($17.9 million)[348][349]. - The operating loss for the three months ended March 31, 2025, was $61.5 million, compared to an operating loss of $16.0 million for the same period in 2024[345]. - The net loss attributable to B. Riley Financial, Inc. was $9.975 million for the three months ended March 31, 2025, a decrease of 79.7% compared to a net loss of $49.2 million in the same period in 2024[345]. - The Capital Markets segment reported a revenue decrease of 58.2%, falling to $25.2 million from $60.3 million year-over-year[350]. - Wealth Management segment revenues from services and fees decreased by $4.5 million to $46.7 million for the three months ended March 31, 2025, down from $51.2 million in the same period of 2024, primarily due to an $8.8 million decrease in wealth and asset management fees[351]. - Communications segment revenues from services and fees decreased by $17.9 million to $63.2 million for the three months ended March 31, 2025, primarily due to a $17.6 million decline in subscription revenue[352]. - E-Commerce segment saw a revenue increase of 100%, generating $3.5 million in the three months ended March 31, 2025, compared to no revenue in the same period in 2024[347]. Investment and Assets - As of March 31, 2025, total securities and other investments owned amounted to $231.8 million, down from $282.3 million as of December 31, 2024, representing a decrease of approximately 17.9%[331]. - The carrying value of public equity securities decreased from $124.9 million as of December 31, 2024, to $79.7 million as of March 31, 2025, a decline of about 36.2%[331]. - The carrying value of private equity securities decreased from $107.6 million as of December 31, 2024, to $97.7 million as of March 31, 2025, a reduction of approximately 9.2%[331]. - Total assets under management (AUM) were approximately $18.4 billion as of March 31, 2025, down from $25.8 billion as of March 31, 2024, reflecting a significant decline in AUM[351]. Business Operations - The Company operates through five reportable business segments: Capital Markets, Wealth Management, Communications, Consumer, and E-Commerce[320]. - The Company maintains a diverse investment approach, focusing on operational improvements to maximize free cash flow from acquired companies[318]. - The Company has a significant presence in various locations, including offices in Los Angeles, New York, Chicago, and internationally in Canada, Europe, Asia, and Australia[319]. Debt and Financing - The Company executed four private exchange transactions resulting in the cancellation of approximately $29.5 million of 5.50% Senior Notes and the issuance of approximately $140.7 million aggregate principal amount of 8.00% Senior Secured Second Lien Notes due 2028[337]. - The Targus/FGI Credit Agreement provides a $30.0 million revolving loan facility, with a final maturity date of August 20, 2028[339]. - The company extended an additional subordinated loan of $5.0 million to the Targus Borrower, increasing the total loan amount to $10.0 million[340]. - The company expects to utilize existing cash and proceeds from business sales to meet debt service obligations over the next twelve months[383]. - As of March 31, 2025, the company had $138.3 million in unrestricted cash and cash equivalents and $1.6 billion in borrowings outstanding[382]. - Approximately 86% of the company's debt obligations bore interest at fixed rates as of March 31, 2025[402]. - A 1% change in floating interest rates would result in a $0.5 million change in interest expense[403]. Cash Flow - Cash provided by operating activities decreased to $0.2 million in Q1 2025 from $135.4 million in Q1 2024, a reduction of $135.2 million[395]. - Cash provided by investing activities increased to $59.2 million in Q1 2025 from $18.3 million in Q1 2024, an increase of $40.9 million[397]. - Cash used in financing activities decreased to $172.5 million in Q1 2025 from $190.9 million in Q1 2024, a reduction of $18.4 million[398]. Other Financial Metrics - Interest income from loans decreased by $18.9 million, while interest income from securities lending dropped by $37.0 million, reflecting declines of 85.6% and 97.8%, respectively[345][348]. - Selling, general and administrative expenses decreased by $11.6 million to $167.4 million during the three months ended March 31, 2025, from $178.9 million in the same period of 2024[363]. - Direct cost of services decreased by $17.0 million to $42.7 million during the three months ended March 31, 2025, primarily due to a $16.2 million decrease in the Communications segment[361]. - Cost of goods sold decreased by $2.1 million to $36.7 million during the three months ended March 31, 2025, primarily due to lower sales volume in the Consumer Products segment[362]. - Interest expense from securities lending and loan participations sold decreased by $34.7 million to $0.7 million for the three months ended March 31, 2025, due to a reduction in loaned securities from $2.0 billion to $33.0 million[370]. - Realized and unrealized losses on investments were $14.5 million for the three months ended March 31, 2025, an improvement from a loss of $34.9 million in the same period of 2024[372]. - The company reported a benefit from income taxes of $3.0 million for the three months ended March 31, 2025, compared to $21.3 million in the prior year, with an effective tax rate of 13.2%[376]. Corporate Actions - The Company completed the sale of a portion of its Wealth Management business for net cash consideration of $26.0 million, which included 36 financial advisors managing approximately $4.0 billion, or 23.6%, of assets under management as of March 31, 2025[336]. - The company completed the sale of Atlantic Coast Recycling for approximately $68.6 million and the sale of its financial consulting business for $117.8 million[386]. - The company did not pay any cash dividends on common stock during the three months ended March 31, 2025, following the suspension of dividends announced in August 2024[390]. - Common stock dividends declared for Q1 2025 were $0.50 per share, consistent with Q1 2024[391]. - Series A Preferred Stock dividends are at a cumulative rate of 6.875%, with $2.0 million in arrears as of March 31, 2025[392]. - Series B Preferred Stock dividends are at a cumulative rate of 7.375%, with $1.3 million in arrears as of March 31, 2025[393]. - The company announced a name change to BRC Group Holdings, Inc., effective January 1, 2026[341].

Financial Performance - Total revenues decreased by $111.5 million to $186.1 million for the three months ended March 31, 2025, compared to $297.6 million for the same period in 2024, representing a decline of 37.5%[348]. - Revenues from services and fees fell by $55.2 million, with significant decreases in the Capital Markets segment by $35.1 million and the Communications segment by $17.9 million[348][349]. - The operating loss for the three months ended March 31, 2025, was $61.5 million, compared to an operating loss of $16.0 million for the same period in 2024[345]. - Net loss attributable to B. Riley Financial, Inc. was $9.975 million for the three months ended March 31, 2025, a decrease of 79.7% compared to a net loss of $49.2 million in the same period in 2024[345]. - The Capital Markets segment's revenues from services and fees decreased to $25.2 million, down 58.2% from $60.3 million in the prior year[350]. - Wealth Management segment revenues from services and fees decreased by $4.5 million to $46.7 million for the three months ended March 31, 2025, down from $51.2 million in the same period of 2024, primarily due to an $8.8 million decrease in wealth and asset management fees[351]. - Communications segment revenues from services and fees decreased by $17.9 million to $63.2 million for the three months ended March 31, 2025, primarily due to a $17.6 million decline in subscription revenue[352]. - E-Commerce segment revenues were $3.5 million during the three months ended March 31, 2025, consisting of commission fees from Nogin, acquired in the second quarter of 2024[353]. - The company generated a net loss of $10.0 million for the three months ended March 31, 2025, compared to a net loss of $49.2 million in the same period of 2024[381]. Investment and Asset Management - As of March 31, 2025, total securities and other investments owned amounted to $231.8 million, down from $282.3 million as of December 31, 2024, representing a decrease of approximately 17.9%[331]. - The carrying value of public equity securities decreased to $79.7 million as of March 31, 2025, from $124.9 million as of December 31, 2024, a decline of about 36.2%[331]. - The carrying value of private equity securities was $97.7 million as of March 31, 2025, down from $107.6 million as of December 31, 2024, reflecting a decrease of approximately 9.2%[335]. - Total assets under management (AUM) were approximately $18.4 billion as of March 31, 2025, down from $25.8 billion as of March 31, 2024, reflecting a significant decline in AUM[351]. - The Company maintains a diverse investment portfolio, including public and private equities, corporate bonds, and other fixed income securities[331]. Corporate Actions and Changes - The Company completed the sale of a portion of its Wealth Management business for net cash consideration of $26.0 million, which included 36 financial advisors managing approximately $4.0 billion, or 23.6%, of assets under management as of March 31, 2025[336]. - The aggregate cash consideration for the sale of GlassRatner and Farber was $117.8 million, subject to adjustment based on working capital within 180 days following the sale date[338]. - The Company announced a name change to BRC Group Holdings, Inc., effective January 1, 2026[341]. - The company completed the sale of Atlantic Coast Recycling for approximately $68.6 million and the financial consulting business for $117.8 million[386]. Debt and Financing - The Targus/FGI Credit Agreement provides a $30.0 million revolving loan facility, with a final maturity date of August 20, 2028[339]. - The Targus/FGI Credit Agreement includes covenants that limit the ability of FGI Loan Parties to incur additional indebtedness and engage in certain transactions[340]. - An additional subordinated loan of $5.0 million was extended to the Targus Borrower, increasing the total principal amount of such loan to $10.0 million[340]. - Interest expense from securities lending and loan participations sold decreased by $34.7 million to $0.7 million for the three months ended March 31, 2025, due to a reduction in loaned securities from $2.0 billion to $33.0 million[370]. - The company has approximately 86% of its debt obligations at fixed interest rates, mitigating exposure to interest rate fluctuations[402]. Cash Flow and Expenses - Cash provided by operating activities decreased to $0.2 million in Q1 2025 from $135.4 million in Q1 2024, a reduction of $135.2 million[395]. - Cash provided by investing activities increased to $59.2 million in Q1 2025 from $18.3 million in Q1 2024, an increase of $40.9 million[397]. - Cash used in financing activities decreased to $172.5 million in Q1 2025 from $190.9 million in Q1 2024, a reduction of $18.4 million[398]. - Selling, general and administrative expenses decreased by $11.6 million to $167.4 million for the three months ended March 31, 2025, from $178.9 million in the same period of 2024[363]. - Direct cost of services decreased by $17.0 million to $42.7 million during the three months ended March 31, 2025, primarily due to a $16.2 million decrease in the Communications segment[361]. - Cost of goods sold decreased by $2.1 million to $36.7 million for the three months ended March 31, 2025, primarily due to lower sales volume in the Consumer Products segment[362]. Tax and Other Income - The benefit from income taxes was $3.0 million for the three months ended March 31, 2025, compared to $21.3 million in 2024, with an effective tax rate of 13.2% versus 25.8%[376]. - Other income included interest income of $1.5 million and dividend income of $0.1 million for the three months ended March 31, 2025, compared to $0.7 million and $3.0 million, respectively, in 2024[371]. - Realized and unrealized losses on investments were $14.5 million for the three months ended March 31, 2025, an improvement from a loss of $34.9 million in the same period of 2024[372]. Preferred and Common Stock Dividends - Preferred stock dividends were $2.0 million for the three months ended March 31, 2025, with a temporary suspension announced for future dividends[380]. - Common stock dividends declared for Q1 2025 were $0.50 per share, consistent with the previous quarter[391]. - Series A Preferred Stock dividends are at a cumulative rate of 6.875%, with $2.0 million in arrears as of March 31, 2025[392]. - Series B Preferred Stock dividends are at a cumulative rate of 7.375%, with $1.3 million in arrears as of March 31, 2025[393].

Financial Performance - Total revenues decreased by $111.5 million to $186.1 million for the three months ended March 31, 2025, compared to $297.6 million for the same period in 2024, representing a decline of 37.5%[348]. - Revenues from services and fees fell by $55.2 million, with significant decreases in the Capital Markets segment ($35.1 million) and the Communications segment ($17.9 million)[348][349]. - The operating loss for the three months ended March 31, 2025, was $61.5 million, compared to an operating loss of $16.0 million for the same period in 2024[345]. - Net loss attributable to B. Riley Financial, Inc. was $9.975 million for the three months ended March 31, 2025, a decrease of 79.7% compared to a net loss of $49.2 million in the prior year[345]. - The Capital Markets segment reported a revenue decrease of 58.2%, falling to $25.2 million from $60.3 million year-over-year[350]. - Wealth Management segment revenues from services and fees decreased by $4.5 million to $46.7 million for the three months ended March 31, 2025, down from $51.2 million in the same period of 2024[351]. - Communications segment revenues from services and fees decreased by $17.9 million to $63.2 million for the three months ended March 31, 2025, primarily due to a $17.6 million drop in subscription revenue[352]. - The company generated a net loss of $10.0 million for the three months ended March 31, 2025, compared to a net loss of $49.2 million in the same period in 2024[381]. Investment and Asset Management - As of March 31, 2025, total securities and other investments owned amounted to $231.8 million, down from $282.3 million as of December 31, 2024, representing a decrease of approximately 17.9%[331]. - The carrying value of public equity securities decreased to $79.7 million as of March 31, 2025, from $124.9 million as of December 31, 2024, a decline of about 36.1%[331]. - The carrying value of private equity securities was $97.7 million as of March 31, 2025, down from $107.6 million as of December 31, 2024, indicating a decrease of approximately 9.2%[335]. - Total assets under management (AUM) were approximately $18.4 billion as of March 31, 2025, down from $25.8 billion as of March 31, 2024, reflecting a significant decline[351]. - The Company maintains a diverse investment portfolio, including public and private equities, corporate bonds, and other fixed income securities[331]. Business Operations and Segments - The Company operates through five reportable segments: Capital Markets, Wealth Management, Communications, Consumer, and E-Commerce, focusing on tailored financial solutions[320]. - The Wealth Management segment provides services to individuals, families, and small businesses, emphasizing personalized financial planning and investment management[324]. - The Communications Segment includes businesses like Lingo and magicJack, focusing on cloud communications and managed services, with plans for future acquisitions[325]. - The E-Commerce segment saw a revenue increase of 100%, contributing $3.5 million in the current period[347]. - E-Commerce segment revenues were $3.5 million during the three months ended March 31, 2025, consisting of commission fees from Nogin, acquired in Q2 2024[353]. Cash Flow and Financing - Cash provided by operating activities decreased to $0.2 million in Q1 2025 from $135.4 million in Q1 2024, a reduction of $135.2 million[395]. - Cash provided by investing activities increased to $59.2 million in Q1 2025 from $18.3 million in Q1 2024, an increase of $40.9 million[397]. - Cash used in financing activities decreased to $172.5 million in Q1 2025 from $190.9 million in Q1 2024, a reduction of $18.4 million[398]. - The company expects to utilize existing cash and proceeds from business sales to meet debt service obligations over the next twelve months[383]. - As of March 31, 2025, the company had $138.3 million in unrestricted cash and cash equivalents and $1.6 billion in borrowings outstanding[382]. Debt and Interest - Approximately 86% of the company's debt obligations bore interest at fixed rates as of March 31, 2025[402]. - A 1% change in floating interest rates would result in a $0.5 million change in interest expense[403]. - Interest income from loans decreased by $18.9 million to $3.2 million for the three months ended March 31, 2025, down from $22.1 million in the same period of 2024[358]. - Interest income from securities lending decreased by $37.0 million to $0.8 million for the three months ended March 31, 2025, from $37.8 million in the same period of 2024[359]. - Interest expense decreased by $34.7 million to $0.7 million for the three months ended March 31, 2025, due to a reduction in securities loaned and loan participations sold from $2.0 billion to $33.0 million[370]. Dividends and Stock - Common stock dividends declared for Q1 2025 were $0.50 per share, consistent with the previous quarter[391]. - Series A Preferred Stock dividends are at a cumulative rate of 6.875%, with $2.0 million in arrears as of March 31, 2025[392]. - Series B Preferred Stock dividends are at a cumulative rate of 7.375%, with $1.3 million in arrears as of March 31, 2025[393]. Other Financial Metrics - Realized and unrealized losses on investments were $14.5 million for the three months ended March 31, 2025, an improvement from a loss of $34.9 million in the same period in 2024[372]. - The benefit from income taxes was $3.0 million for the three months ended March 31, 2025, compared to $21.3 million in 2024, with an effective tax rate of 13.2% versus 25.8%[376]. - Selling, general and administrative expenses decreased by $11.6 million to $167.4 million for the three months ended March 31, 2025, down from $178.9 million in the same period of 2024[363]. - Direct cost of services decreased by $17.0 million to $42.7 million for the three months ended March 31, 2025, primarily due to a $16.2 million decrease in the Communications segment[361]. - Cost of goods sold decreased by $2.1 million to $36.7 million for the three months ended March 31, 2025, from $38.8 million in the same period of 2024[362].