Financial Performance - The Company reported a net income of $68.0 million, or $0.52 per share, for fiscal year 2025, up from $38.0 million, or $0.29 per share, in the prior year, primarily due to higher net interest income [143]. - The efficiency ratio improved to 58.33% for the current fiscal year, down from 66.91% in the prior year, reflecting higher net interest income [146]. - The return on average assets increased to 0.71% in 2025 from 0.40% in 2024, reflecting enhanced profitability relative to total assets [285]. - The return on average equity improved to 6.54 in 2025, up from 3.69 in 2024, indicating stronger returns for shareholders [285]. - Net income for the current fiscal year was $68.025 million, a 79.0% increase from $38.010 million in the prior fiscal year, with pretax income rising by 53.4% to $83.021 million [307]. Loan Portfolio - Total loans receivable increased to $8.0 billion in 2025, with a net interest income of $180.3 million, compared to $7.9 billion and $162.1 million in 2024, respectively [288]. - The commercial loan portfolio increased by $607.0 million, or approximately 40%, during the current fiscal year, while one- to four-family loans decreased by $400.0 million [148]. - The one- to four-family loan portfolio decreased to $3.77 billion, representing 64% of the total one- to four-family loan portfolio, impacted by high interest rates and limited housing inventory [177][176]. - The commercial loan portfolio, which includes commercial real estate loans, reached $2.12 billion, up from $1.51 billion in the previous year, with a weighted average yield of 5.98% [187]. - Total originated commercial loans amounted to $797,466,000 with a weighted average rate of 6.93% and a weighted average LTV of 65% [203]. Asset and Liability Management - Total assets reached $9.78 billion as of September 30, 2025, an increase of $251.1 million from the previous year, mainly due to loan portfolio growth funded by deposit increases [147]. - Total liabilities increased to $8.73 billion, up $235.7 million from the previous year, primarily due to a $364.5 million increase in deposits from high yield savings accounts [151]. - The Bank's total borrowings were $1.95 billion, representing approximately 20% of total assets, with a borrowing limit of 44% starting November 1, 2025 [312]. - The weighted average rate for total deposits decreased to 2.26% in 2025 from 2.45% in 2024 [251]. - The Bank had $2.92 billion in liquidity available as of September 30, 2025, based on its collateral agreements and unencumbered securities [313]. Credit Quality and Risk Management - The Allowance for Credit Losses (ACL) was $24.0 million as of September 30, 2025, an increase from $23.0 million in the previous year, while the reserve for off-balance sheet credit exposures decreased to $5.5 million from $6.0 million [171]. - Nonaccrual loans as a percentage of total loans increased to 0.59% as of September 30, 2025, from 0.13% in the previous year [225]. - The total non-performing assets amounted to $48.3 million, representing 0.49% of total assets as of September 30, 2025 [225]. - The ratio of ACL to total loans increased to 0.30% as of September 30, 2025, compared to 0.29% in the previous year, primarily due to a shift in the loan portfolio mix towards commercial loans [239]. - The provision for credit losses for the year ended September 30, 2025, was $1.202 million, a significant increase from a provision of $(633) thousand in 2024 [242]. Dividend and Shareholder Returns - Stockholders' equity totaled $1.05 billion as of September 30, 2025, with total dividends declared and paid during fiscal year 2025 amounting to $44.3 million [152]. - The Company plans to continue regular quarterly cash dividends of $0.085 per share and explore further share repurchase opportunities in fiscal year 2026 [163]. - The Company paid $44.3 million in cash dividends during the fiscal year, equating to $0.34 per share [271]. - A stock repurchase of 618,260 shares was executed at an average price of $6.23 per share during the fiscal year [272]. - Since the second-step conversion in December 2010, the Company has returned $2.01 billion to stockholders through dividends and stock repurchases [273]. Strategic Initiatives and Future Outlook - The Company anticipates growing past $10 billion in total assets in the coming fiscal years due to strategic initiatives [308]. - Management continues to evaluate capital allocation strategies to enhance stockholder value, including stock repurchases and additional cash dividends [273]. - The projected disbursements for the quarter ending December 31, 2025, are expected to be $75,856,000 [209]. - The Company aims to maintain a tier 1 leverage ratio of about 9% to manage risk effectively [275]. - The Bank is expected to continue making earnings distributions to the Company during fiscal year 2026, contingent on maintaining positive tax accumulated earnings [276]. Operational and Compliance Risks - Cybersecurity risks continue to rise, potentially impacting the Bank's operations and reputation [86]. - Compliance with evolving privacy and data protection laws may result in higher costs and restrict business activities [92]. - The Bank and the Company face potential business, reputation, and financial risks from third-party vendors, including operational errors and information security breaches [94]. - The Bank heavily relies on technology for product delivery and business operations, necessitating ongoing investment in technological solutions and system upgrades [97]. - There are risks associated with implementing new technology initiatives, including potential delays, budget overruns, and negative operational impacts [97].

Revenue Performance - Q4 total operating revenue was $139 million, with total digital revenue at $74 million, representing 53% of total revenue[2] - For the fiscal year 2025, total operating revenue was $562 million, with total digital revenue flat at $298 million[5] - Total Operating Revenue for the three months ended September 28, 2025, was $139.1 million, a decrease of 12.3% compared to $158.6 million for the same period in 2024[15] - Same-store Total Advertising Revenue for the twelve months ended September 29, 2025, was $252.3 million, down 5.5% from $266.9 million in 2024[15] - Digital Advertising Revenue for the three months ended September 28, 2025, was $44.1 million, a decline of 16.0% from $52.5 million in the same period last year[15] - Print Subscription Revenue for the twelve months ended September 29, 2025, decreased to $164.2 million, down 16.9% from $197.6 million in 2024[15] - Total Subscription Revenue for the three months ended September 28, 2025, was $67.0 million, a decrease of 8.5% from $73.0 million in the same period last year[15] Digital Revenue Insights - Digital-only subscription revenue increased by 16% year-over-year, totaling $25 million, with 633,000 digital-only subscribers at the end of the quarter[2] - The company reported Same-store Digital Subscription Revenue of $94.2 million for the twelve months ended September 29, 2025, an increase of 16.2% from $81.0 million in 2024[15] Financial Performance - Adjusted EBITDA for Q4 was $15 million, a decrease of $2 million year-over-year, but an increase of $2 million on a comparable basis[2] - Adjusted EBITDA for FY25 was negatively impacted by a cyber incident, with an estimated impact of approximately $8 million[17] - The company expects mid-single-digit Adjusted EBITDA growth for fiscal year 2026[4] Operating Expenses and Losses - Operating expenses for FY25 totaled $571 million, a 7% decrease compared to the prior year[5] - The company reported a net loss of $36 million for FY25, compared to a net loss of $25.8 million in the previous year[5] Debt and Financial Strategy - The company has $455 million of debt outstanding with favorable financing terms, including a fixed annual interest rate of 9.0%[4] - The company’s debt stands at $576 million under a credit agreement with BH Finance LLC[17] Strategic Changes - The strategic termination of the fully funded benefit pension plan is aimed at improving balance sheet flexibility and reducing long-term volatility[6] Operational Context - The fourth quarter of fiscal 2025 consisted of 13 weeks, compared to 14 weeks in the fourth quarter of fiscal 2024[17] - Cash Costs are defined as compensation, newsprint, ink, and other operating expenses, excluding non-cash operating expenses[17]

Financial Performance - Consolidated net sales for fiscal 2025 were $3.1 billion, with the Pet segment contributing approximately $1.8 billion and the Garden segment approximately $1.3 billion[220]. - Operating income increased by $64.7 million, or 34.9%, to $250 million in fiscal 2025, with an operating margin improvement to 8.0% from 5.8% in fiscal 2024[240]. - Gross profit rose by $53.6 million, or 5.7%, to $997.3 million, with gross margin improving 240 basis points to 31.9% in fiscal 2025[232]. - Net income for fiscal 2025 was $162.8 million, or $2.55 per diluted share, compared to $108.0 million, or $1.62 per diluted share in fiscal 2024[225]. - Total net sales for fiscal 2025 were $3,129.1 million, compared to $3,200.5 million for fiscal 2024, reflecting a decrease of 2.2%[260]. - Non-GAAP net income for fiscal 2025 was $174.2 million, or $2.73 per diluted share, compared to $142.4 million, or $2.13 per diluted share for fiscal 2024, indicating a 22.3% increase in non-GAAP net income[259]. Segment Performance - Pet net sales decreased by $30.8 million, or 1.7%, to $1.8 billion, primarily due to lower sales of durable items[230]. - Garden net sales decreased by $40.6 million, or 3.0%, to $1.3 billion, attributed to decreased sales of third-party products and the planned exit of the pottery business[231]. - The Garden segment's operating income for fiscal 2025 was $142.4 million, up from $81.9 million in fiscal 2024, showing a significant increase of 74.0%[262]. - The Pet segment's operating income for fiscal 2025 was $215.7 million, compared to $203.4 million in fiscal 2024, representing a 6.0% increase[261]. Expenses and Costs - Selling, general and administrative expenses decreased by $11.0 million, or 1.5%, to $747.3 million, but as a percentage of net sales, it increased to 23.9%[236]. - The company incurred approximately $10 million in one-time closure costs related to the wind-down of U.K. operations during fiscal 2025[222]. - The effective income tax rate increased to 24.4% in fiscal 2025 from 23.2% in fiscal 2024, primarily due to non-deductible losses from the U.K. operations wind-down[247]. - Inflation moderated in fiscal 2024 but increased in the second half of fiscal 2025, primarily due to tariffs, impacting margins and input costs[266]. Cash Flow and Financing - Net cash provided by operating activities decreased by $62.4 million, from $394.9 million in fiscal 2024 to $332.5 million in fiscal 2025[272]. - Net cash used in investing activities decreased by $60.3 million, from $105.2 million in fiscal 2024 to $44.9 million in fiscal 2025, primarily due to the acquisition of TDBBS, LLC in fiscal 2024[273]. - Net cash used in financing activities increased by $131.2 million, from $25.4 million in fiscal 2024 to $156.6 million in fiscal 2025, mainly due to higher stock repurchases[274]. - The company financed its growth through a combination of internally generated funds, bank borrowings, supplier credit, and sales of equity and debt securities[269]. Shareholder Activities - The company repurchased 3.2 million shares of non-voting common stock and 1.4 million shares of voting common stock at an aggregate cost of $148.4 million during fiscal 2025[224]. - The company has a $600 million asset-backed loan facility, which is expected to be sufficient for working capital and capital spending needs for at least the next 12 months[275]. Assets and Liabilities - Total debt outstanding as of September 27, 2025, was $1,191.7 million, slightly up from $1,190.0 million at September 28, 2024[283]. - The company has significant contractual cash obligations totaling $1.83 billion, with long-term debt obligations of $1.20 billion and interest payment obligations of $230.2 million[313]. - Long-term debt for the Parent/Issuer was $1.19 billion, with total liabilities amounting to $3.59 billion, while Guarantors had long-term debt of $100,000 and total liabilities of $580.9 million[312]. Impairments and Risks - The company recognized a non-cash impairment charge of $12.8 million in the Pet segment during fiscal 2024 due to changing market conditions[256]. - The company recognized impairment losses on intangible assets of $1.0 million, $12.8 million, and $11.5 million in fiscal years 2025, 2024, and 2023 respectively[328]. - The company performed annual goodwill impairment testing and determined that it was more likely than not that the fair values of its reporting segments were greater than their carrying amounts, thus no impairment was required for fiscal years 2024 and 2025[322][323]. Market and Currency Exposure - The company has minimal exposure to foreign currency exchange risk due to limited sales outside the United States[333]. - Purchases by U.S. subsidiaries from foreign vendors are primarily made in U.S. dollars, reducing currency risk[333]. - The international subsidiary primarily transacts in British pounds and Canadian dollars, but overall exposure remains minimal[333]. - The company does not hedge against foreign currency risks, considering them immaterial to current business operations[333].

Financial Performance - Consolidated net sales for fiscal 2025 were $3.1 billion, with the Pet segment contributing approximately $1.8 billion and the Garden segment approximately $1.3 billion[220]. - Operating income increased by $64.7 million, or 34.9%, to $250 million in fiscal 2025, with an operating margin improvement to 8.0% from 5.8% in fiscal 2024[240]. - Gross profit rose by $53.6 million, or 5.7%, to $997.3 million, with gross margin improving 240 basis points to 31.9% in fiscal 2025[232]. - Net income for fiscal 2025 was $162.8 million, or $2.55 per diluted share, compared to $108.0 million, or $1.62 per diluted share for fiscal 2024, representing a 50.6% increase in net income[248]. - Non-GAAP net income for fiscal 2025 was $174.2 million, or $2.73 per diluted share, compared to $142.4 million, or $2.13 per diluted share for fiscal 2024, reflecting a 22.3% increase in non-GAAP net income[259]. - Total net sales for fiscal 2025 were $3,129.1 million, compared to $3,200.5 million for fiscal 2024, indicating a slight decrease of 2.2%[260]. Segment Performance - Pet net sales decreased by $30.8 million, or 1.7%, to $1.8 billion, primarily due to lower sales of durable items[230]. - Garden net sales decreased by $40.6 million, or 3.0%, to $1.3 billion, attributed to decreased sales of third-party products and the planned exit of the pottery business[231]. - The Garden segment's operating income for fiscal 2025 was $142.4 million, up from $81.9 million in fiscal 2024, showing a significant increase of 74.0%[262]. - The Pet segment's operating income for fiscal 2025 was $215.7 million, compared to $203.4 million in fiscal 2024, marking a 6.0% increase[261]. Expenses and Costs - Selling, general and administrative expenses decreased by $11.0 million, or 1.5%, to $747.3 million, but as a percentage of net sales, it increased to 23.9%[236]. - The effective income tax rate increased to 24.4% in fiscal 2025 from 23.2% in fiscal 2024, primarily due to non-deductible losses from the wind-down of U.K. operations[247]. - The company incurred approximately $10.0 million in one-time closure costs related to the wind-down of U.K. operations[222]. - Net interest expense decreased by $5.1 million, or 13.4%, to $32.8 million, due to increased interest income from higher cash balances[245]. Cash Flow and Financing - Net cash provided by operating activities decreased by $62.4 million, from $394.9 million in fiscal 2024 to $332.5 million in fiscal 2025[272]. - Net cash used in investing activities decreased by $60.3 million, from $105.2 million in fiscal 2024 to $44.9 million in fiscal 2025, primarily due to the acquisition of TDBBS, LLC in fiscal 2024[273]. - Net cash used in financing activities increased by $131.2 million, from $25.4 million in fiscal 2024 to $156.6 million in fiscal 2025, mainly due to higher stock repurchases[274]. - The company financed its growth through a combination of internally generated funds, bank borrowings, supplier credit, and sales of equity and debt securities[269]. Share Repurchase and Debt - During fiscal 2025, the company repurchased 3.2 million shares of non-voting common stock and 1.4 million shares of voting common stock at a total cost of $148.4 million[224]. - Total debt outstanding as of September 27, 2025, was $1,191.7 million, slightly up from $1,190.0 million at September 28, 2024[283]. - The company has a $600 million asset-backed loan facility, which is expected to be adequate for working capital and capital spending needs for at least the next 12 months[275]. - The company incurred approximately $6 million of debt issuance costs related to the issuance of $400 million 4.125% senior notes due 2031[285]. Assets and Liabilities - Total assets for the Parent/Issuer were $5.20 billion, while Guarantors had total assets of $4.46 billion as of September 27, 2025, compared to $4.81 billion and $4.23 billion respectively in the prior year[312]. - Long-term debt for the Parent/Issuer was $1.19 billion, with total liabilities amounting to $3.59 billion, while Guarantors had long-term debt of $100,000 and total liabilities of $580.9 million[312]. - The company has significant contractual cash obligations totaling $1.83 billion, with $204.8 million due in fiscal 2026[313]. Impairments and Risks - The company recognized a non-cash impairment charge of $12.8 million in the Pet segment during fiscal 2024 due to changing market conditions[256]. - The company recognized impairment losses on intangible assets of $1.0 million, $12.8 million, and $11.5 million in fiscal years 2025, 2024, and 2023 respectively[328]. - Interest expense could increase or decrease by approximately $1.9 million if interest rates changed by 25 basis points on the company's Amended Credit Facility[331]. Market and Operational Insights - Approximately 64% of the Garden segment's net sales occurred during the second and third fiscal quarters, highlighting the seasonality of the business[268]. - Inflation moderated in fiscal 2024 but increased in the second half of fiscal 2025, primarily due to tariffs, impacting margins and input costs[266]. - The company has minimal sales outside of the United States, indicating a strong domestic focus[333]. - Purchases by U.S. subsidiaries from foreign vendors are primarily made in U.S. dollars, reducing foreign currency risk exposure[333]. - The international subsidiary primarily transacts in British pounds and Canadian dollars, but overall foreign currency exchange risk is considered immaterial[333]. - The company does not hedge against foreign currency risks, reflecting confidence in current operations[333]. Growth Strategy - The company anticipates capital expenditures of approximately $50 to $60 million over the next 12 months for plant and equipment upgrades and IT platform implementation[276]. - The company is evaluating potential acquisition candidates as part of its growth strategy, which may require additional external capital[277].

Business Operations - Suburban Propane sold approximately 400.5 million gallons of propane and 16.5 million gallons of fuel oil and refined fuels to retail customers during the year ended September 27, 2025[11]. - The company serves approximately 1.0 million customers through about 750 locations across 42 states, with operations mainly on the east and west coasts and parts of the Midwest and Alaska[11]. - Approximately 93% of propane gallons sold in fiscal 2025 were to retail customers, with 43% to residential, 39% to commercial, and 8% to industrial customers[32]. - Sales of fuel oil and refined fuels amounted to 16.5 million gallons in fiscal 2025, with 66% sold to residential customers[43]. - During fiscal 2025, approximately 1.1 million dekatherms of natural gas and 121.5 million kilowatt hours of electricity were sold, with 88% of customers being residential households[53]. - The retail propane industry is highly fragmented, with the ten largest retailers accounting for approximately 35% of total retail sales in the U.S.[41]. - Approximately two-thirds of retail propane volume is sold during the peak heating season from October through March[57]. - The fuel oil business experiences greater seasonality, with approximately three-fourths of volumes sold between October and March[57]. Renewable Energy Initiatives - In fiscal 2022, Suburban Renewable Energy acquired a platform of RNG production assets, including a facility in Arizona and a project in Ohio, expected to come online in the first half of fiscal 2026[14]. - Suburban Renewable Energy also acquired a 25% equity interest in Independence Hydrogen, Inc., focusing on developing a hydrogen ecosystem for local markets[15]. - The company aims to achieve sustainable profitable growth through strategic investments in renewable energy products and technologies[21]. - The company is committed to advancing clean air and low-carbon benefits of traditional propane while investing in innovative renewable energy solutions[22]. - The company is committed to increasing the availability of renewable liquid fuels, including renewable propane and RNG, in the coming years[73]. - The Renewable Fuel Standard (RFS) mandates the use of renewable fuel in the transportation sector, with the company expecting to generate RINs from RFS-compliant biofuel production[75]. - The Inflation Reduction Act includes tax credits and incentives for renewable energy production, which may benefit the company's renewable energy products[76]. - The company has executed agreements to purchase and distribute renewable propane, offering a low carbon intensity alternative to traditional fuels[74]. - In fiscal year 2025, the company exceeded 2.0 million gallons of renewable propane sales, primarily in California's transportation and forklift markets[87]. - The company contracted for the supply of over 10.0 million gallons annually of renewable propane to meet customer demand[87]. - The company has invested in a dairy waste anaerobic digester in upstate New York for the production of RNG and purchased anaerobic digesters in Columbus, Ohio, and Stanfield, Arizona[87]. Financial Performance and Risks - The company has accrued environmental liabilities of $1.1 million as of September 27, 2025, representing estimated future remediation and monitoring costs[63]. - The company anticipates ongoing compliance costs related to environmental regulations, but does not expect these to materially affect financial conditions[80]. - The company’s financial performance is vulnerable to disruptions in the capital and credit markets, affecting liquidity and investment opportunities[127]. - The potential for increased volatility in commodity and input costs could substantially impact operational results[127]. - Supply chain disruptions could adversely impact the company's ability to acquire sufficient supplies of products, potentially affecting financial results[128]. - The company has experienced increased freight expenses and longer lead times due to global supply chain disruptions, which may continue to affect operations[129]. - High inflation in the U.S. has led to increased commodity, transportation, and labor costs, negatively impacting profitability[130]. - The retail propane and fuel oil industries are expected to see relatively flat to moderately declining demand over the next several years due to competition and weather patterns[135]. - The company faces intense competition from other energy sources, particularly natural gas, which is currently less expensive than propane and fuel oil[136]. - The ongoing geopolitical conflicts, including the situation in Ukraine and the Middle East, have caused volatility in the price and supply of propane and fuel oil, potentially impacting business operations[144]. Regulatory and Compliance Issues - The company is required to disclose climate-related financial risks by January 1, 2026, under California's SB 261[79]. - The California climate disclosure legislation requires entities meeting certain revenue thresholds to disclose Scope 1 and Scope 2 GHG emissions starting in 2026, impacting operational costs[122]. - Government regulations related to environmental and health and safety matters could lead to significant costs and operational challenges for the company[148]. - Current regulatory proposals could adversely impact the assessment of carbon intensity for fuel produced outside of California, affecting the value of RINs and LCFS Credits[170]. Employee and Community Engagement - As of September 27, 2025, the company had 3,190 full-time employees, with 2,476 in customer service centers[108]. - The company intensified efforts in fiscal year 2024 to collaborate with organizations supporting underserved communities, focusing on issues like food insecurity and education[91]. - The company has been recognized as a "Top Company for Women to Work in Transportation" for two consecutive years and ranked among the "Elite 30" in 2025[97]. - The Board of Supervisors was honored with the Small Company Board of the Year award in fiscal year 2025 for high standards of governance[104]. Safety and Environmental Commitment - The company maintains a strong commitment to safety, investing in programs and technology to improve safety throughout its operations[93]. - The company is actively monitoring potential environmental issues and compliance with various federal and state regulations[62]. - The company is positioned to benefit from state-level programs aimed at reducing greenhouse gas emissions, such as the California Low Carbon Fuel Standard[77]. Debt and Financial Obligations - As of September 27, 2025, the company has long-term debt totaling $350.0 million in 5.875% senior notes due March 1, 2027, $650.0 million in 5.0% senior notes due June 1, 2031, $80.6 million in 5.5% green bonds due October 1, 2028 through October 1, 2033, and $149.2 million outstanding under a $500.0 million senior secured revolving credit facility[182]. - The company’s ability to make distributions to Unitholders is limited by its debt obligations, including covenants that restrict additional indebtedness and certain transactions[182]. - The Green Bonds previously required a debt service coverage ratio of not less than 1.00 to 1.00, which the company did not comply with for several fiscal quarters, leading to potential events of default[183]. - The company obtained waivers from the holders of the Green Bonds for non-compliance with the debt service coverage ratio, allowing continued operations without immediate default[186]. Market and Economic Conditions - Economic conditions, including inflation and consumer spending rates, have adversely affected business performance and may continue to do so[126]. - Increased costs and reduced demand for products may arise from climate change effects, including severe weather events and shifts in consumer behavior[119]. - A significant percentage of the workforce being unable to work due to external conditions could negatively impact operations[127]. - The company is challenged in attracting and retaining qualified employees, particularly drivers and technicians, which may affect operational efficiency[141]. - The company faces risks related to cybersecurity breaches, which could lead to significant harm to its business and operations[178].

Financial Performance - Net sales for Q4 2025 totaled $1.37 billion, a decrease of 2.1% from $1.40 billion in Q4 2024[2] - Net income for Q4 2025 was $25.7 million, a significant recovery from a net loss of $1.5 million in Q4 2024[5] - For the fiscal year 2025, net sales were $5.33 billion, down 5.5% from $5.64 billion in fiscal year 2024[7] Profitability - Gross profit for Q4 2025 was $334.7 million, representing 24.5% of sales, compared to $299.4 million or 21.4% of sales in Q4 2024[3] - Gross profit for the fiscal year 2025 was $1.27 billion, or 23.9% of sales, compared to $1.30 billion or 23.0% of sales in fiscal year 2024[7] Expenses - Operating and administrative expenses for fiscal year 2025 totaled $1.159 billion, slightly down from $1.162 billion in fiscal year 2024[8] - Interest expense decreased to $19.7 million in fiscal year 2025 from $21.9 million in fiscal year 2024[8] Earnings - Basic earnings per share for Class A Common Stock were $4.50 for fiscal year 2025, down from $5.68 in fiscal year 2024[9] Capital Expenditures and Debt - Capital expenditures for fiscal year 2025 were $114.5 million, significantly lower than $210.9 million in fiscal year 2024[10] - Total debt at the end of fiscal year 2025 was $514.8 million, reduced from $532.6 million at the end of fiscal year 2024[4]

Financial Performance - Deere & Company reported net income of $1.065 billion for Q4 2025, a decrease of 14% from $1.245 billion in Q4 2024, with earnings per share of $3.93 compared to $4.55[1][6] - Total net sales and revenues for Q4 2025 increased by 11% to $12.394 billion, while full-year revenues decreased by 12% to $45.684 billion[2][6] - The company forecasts net income for fiscal 2026 to be between $4.00 billion and $4.75 billion[4][5] - Deere's operating profit for the full year 2025 was $6.020 billion, a decline of 33% from $9.039 billion in 2024[22] - Total net income attributable to Deere & Company for the year ended November 2, 2025, was $5,027 million, down 29.9% from $7,100 million in 2024[25] - The total income after income taxes for the three months ended November 2, 2025, was $1,070 million, compared to $1,270 million in the same period of 2024[45] - The company reported a net income attributable to Deere & Company of $1,065 million for the three months ended November 2, 2025, down from $1,245 million in the same period of 2024[45] - Net sales for Deere & Company decreased to $38,917 million in 2025 from $44,759 million in 2024, representing a decline of approximately 13.2%[47] - Total income after income taxes fell to $4,998 million in 2025, down from $7,112 million in 2024, a decrease of about 29.6%[47] - The net income attributable to Deere & Company was $5,027 million in 2025, down from $7,100 million in 2024, a decrease of about 29.2%[47] - The company reported a net income of $4,998 million in 2025, down from $7,088 million in 2024, representing a decrease of approximately 29.4%[52] Sales and Revenue Breakdown - Production & Precision Agriculture net sales increased by 10% to $4.740 billion in Q4 2025, but operating profit decreased by 8% to $604 million[7][22] - Small Agriculture & Turf net sales rose by 7% to $2.457 billion, but operating profit plummeted by 89% to $25 million due to higher tariffs and production costs[9][22] - Construction & Forestry net sales surged by 27% to $3.382 billion, with operating profit increasing by 6% to $348 million[12][22] - Net sales for the three months ended November 2, 2025, were $10,579 million, a 14.0% increase from $9,275 million in the same period of 2024[25] - Research and development expenses increased to $681 million for the three months ended November 2, 2025, compared to $626 million in the same period of 2024, reflecting a 8.8% rise[25] Assets and Liabilities - Total assets as of November 2, 2025, were $105,996 million, a decrease from $107,320 million as of October 27, 2024[27] - The company reported a total liabilities figure of $79,989 million as of November 2, 2025, down from $84,395 million in the previous year[27] - Total assets decreased to $105,996 million in 2025 from $107,320 million in 2024, a reduction of approximately 1.2%[50] - Total liabilities decreased to $79,989 million in 2025 from $84,395 million in 2024, reflecting a decline of about 5.2%[50] Cash Flow and Investments - Cash flows from operating activities for the year ended November 2, 2025, were $7,459 million, a decrease from $9,231 million in 2024[29] - Cash and cash equivalents increased to $8,276 million in 2025 from $7,324 million in 2024, an increase of approximately 13.0%[50] - Net cash provided by operating activities decreased to $7,459 million in 2025 from $9,231 million in 2024, a decline of approximately 19.2%[52] - Total cash flows from investing activities showed a net outflow of $2,057 million in 2025 compared to an outflow of $6,464 million in 2024, indicating an improvement in cash management[52] - Cash, cash equivalents, and restricted cash at the end of 2025 totaled $8,533 million, up from $7,633 million at the end of 2024, reflecting a year-over-year increase of 11.8%[52] Operational Challenges and Strategic Moves - The company faces ongoing margin pressures from tariffs and challenges in the large agriculture sector, but remains committed to inventory management and cost control[5][19] - The company anticipates a recovery in small agriculture and construction sectors, while large agriculture remains subdued[5][16] - The company acquired several small-scale businesses in 2025 for a total consideration of $115 million, aimed at enhancing technology offerings in various segments[31] - Employee-separation programs implemented in Q3 2024 resulted in pretax expenses of $152 million for the fiscal year, with significant costs across various segments[40] Other Financial Metrics - Basic earnings per share for the three months ended November 2, 2025, were $3.94, compared to $4.57 in the same period of 2024, reflecting a 13.8% decline[25] - Dividends declared for the year ended November 2, 2025, were $6.48 per share, an increase from $5.88 in 2024[25] - Interest expense decreased to $3,170 million in 2025 from $3,348 million in 2024, a reduction of approximately 5.3%[47] - The company reported a total of $1,809 million in other receivables in 2025, down from $2,193 million in 2024, a decrease of about 17.5%[50] - The equity in income of unconsolidated affiliates improved to $17 million in 2025 from a loss of $24 million in 2024[47] - The provision for credit losses increased to $1,368 million in 2025 from $250 million in 2024, a significant rise of 447.2%[52] - Depreciation and amortization expenses were $1,082 million in 2025, compared to $1,040 million in 2024, reflecting a slight increase of 4.0%[52] - The company experienced a decrease in accounts payable and accrued expenses, which fell to $(1,040) million in 2025 from $(617) million in 2024[52] - The total proceeds from borrowings issued (original maturities greater than three months) were $10,792 million in 2025, a decrease from $17,937 million in 2024, indicating a reduction of 39.5%[52] - The company repurchased common stock amounting to $1,138 million in 2025, down from $4,007 million in 2024, a decrease of 71.6%[52] - The effect of exchange rate changes on cash and cash equivalents resulted in a positive adjustment of $77 million in 2025, compared to a negative adjustment of $(37) million in 2024[52]

Financial Performance - The company had a net income of $149,028 for the three months ended September 30, 2025, compared to a net income of $296,392 for the same period in 2024, reflecting a decrease of approximately 49.7%[154] - For the nine months ended September 30, 2025, the company reported a net income of $296,369, down from $1,659,067 in the same period of 2024, indicating an 82.1% decrease[155] - The company incurred operating costs of $87,438 for the three months ended September 30, 2025, compared to $499,346 for the same period in 2024, showing a decrease of approximately 82.5%[154] Capital and Financing - The company generated gross proceeds of $69,000,000 from the IPO by selling 6,900,000 units at an offering price of $10.00 per unit[134] - The company completed a private placement of 385,750 units, generating gross proceeds of $3,857,500 at a purchase price of $10.00 per unit[135] - The company issued a total of nine unsecured promissory notes for Monthly Extension Fees amounting to $1,080,000 from January 2025 to the date of the report[146] - The company issued a Sponsor Working Capital Note of $300,000, which bears no interest and is payable upon the consummation of the business combination or at the maturity date[165] - The company has a contractual obligation to issue Deferred Underwriting Shares equal to 3.5% of the gross proceeds of the IPO[163] Cash and Working Capital - As of September 30, 2025, the company had cash of $7,679 available for working capital needs, with all remaining cash held in the Trust Account[156] - As of September 30, 2025, the company had cash of $7,679 and a working capital deficiency of $3,448,729, raising substantial doubt about its ability to continue as a going concern[161] Business Combination and Obligations - The company has until November 27, 2025, to consummate its initial business combination, which could be extended up to April 26, 2026, by five Monthly Extensions[148] - The company has not selected any target business for its initial business combination as of the date of the report[142] - The company has no long-term debt or capital lease obligations as of September 30, 2025, and is obligated to issue 805,000 Deferred Underwriting Shares at $3.00 per share upon completion of a business combination[163] Trust Account and Assets - The assets held in the Trust Account amounted to $23,091,185, primarily in mutual funds, classified as trading securities[168] - The company has not entered into any off-balance sheet financing arrangements as of September 30, 2025[162] - The company has no obligations, assets, or liabilities that would be considered off-balance sheet arrangements as of September 30, 2025[162] Accounting and Tax Positions - The company accounts for share-based compensation expense in accordance with ASC 718, recognizing it over the requisite service period[172] - The company has identified no significant uncertain tax positions requiring recognition in its financial statements, as it is considered an exempted Cayman Islands Company[181] - The company has determined that its warrants qualify for equity accounting treatment[170]

Financial Performance - The company had a net income of $149,028 for the three months ended September 30, 2025, compared to a net income of $296,392 for the same period in 2024, reflecting a decrease of approximately 49.8%[154] - For the nine months ended September 30, 2025, the company reported a net income of $296,369, down from $1,659,067 in the same period of 2024, indicating an 82.1% decrease[155] - The company incurred operating costs of $87,438 for the three months ended September 30, 2025, compared to $499,346 for the same period in 2024, showing a decrease of approximately 82.5%[154] Capital and Financing - The company generated gross proceeds of $69,000,000 from the IPO by selling 6,900,000 units at an offering price of $10.00 per unit[134] - The company completed a private placement of 385,750 units, generating gross proceeds of $3,857,500 at a purchase price of $10.00 per unit[135] - The company issued a total of nine unsecured promissory notes for Monthly Extension Fees amounting to $1,080,000 from January 2025 to the date of the report[146] - The company issued a Sponsor Working Capital Note of $300,000 on June 13, 2025, to be used for general working capital purposes, with no interest and payable upon the consummation of the business combination or maturity date[165] Cash and Working Capital - As of September 30, 2025, the company had cash of $7,679 available for working capital needs, with all remaining cash held in the Trust Account[156] - As of September 30, 2025, the company had cash of $7,679 and a working capital deficiency of $3,448,729, raising substantial doubt about its ability to continue as a going concern[161] Business Combination and Extensions - The company has until November 27, 2025, to consummate its initial business combination, which could be extended up to April 26, 2026, by five Monthly Extensions[148] - The company has not selected any other target business for its initial business combination as of the date of the report[142] Trust Account and Assets - Assets held in the Trust Account amounted to $23,091,185, primarily in mutual funds, classified as trading securities[168] - The company’s investments held in the Trust Account are presented at fair value, with gains and losses included in interest and dividend income[168] Debt and Obligations - The company has no long-term debt or capital lease obligations as of September 30, 2025, and is obligated to issue 805,000 Deferred Underwriting Shares upon the completion of a business combination[163] - The company has not entered into any off-balance sheet financing arrangements as of September 30, 2025[162] Accounting and Tax - The company accounts for share-based compensation expense in accordance with ASC 718, recognizing it over the requisite service period[172] - The company has identified Cayman Islands as its only major tax jurisdiction, concluding no significant uncertain tax positions require recognition in its financial statements[179] - The company’s financial statements do not include adjustments that might result from the uncertainty regarding its ability to continue as a going concern[161] - The company complies with ASC 260 for net income (loss) per ordinary share, allocating undistributed income (loss) between redeemable and non-redeemable shares[175]

Revenue and Customer Growth - Annual Recurring Revenue (ARR) increased to $497.1 million as of October 31, 2025, up from $483.0 million in 2024, representing a growth of 2.3%[134] - The total number of customers reached 15,398 as of October 31, 2025, compared to 15,050 in 2024, indicating an increase of 2.3%[135] - Customers with greater than $100,000 in ARR grew to 867 in 2025 from 825 in 2024, reflecting a growth of 5.1%[135] - Revenue for the three months ended October 31, 2025, was $124.5 million, a 4.7% increase from $118.9 million in the same period of 2024[141] - Revenue for the nine months ended October 31, 2025, was $367,761, an increase of $21,708, or 6.3%, compared to $346,053 in 2024[161] Profitability and Income - Gross profit for the three months ended October 31, 2025, was $106.2 million, with a gross margin of 85.3%, up from 83.0% in 2024[138] - Net income attributable to PagerDuty, Inc. common stockholders was $159.6 million for the three months ended October 31, 2025, compared to a net loss of $6.6 million in 2024[138] - Gross profit margin improved from 82.8% in 2024 to 84.6% in 2025, with gross profit increasing to $311,219[160] - Net income attributable to PagerDuty, Inc. increased to $163,999 in 2025, compared to a net loss of $33,975 in 2024[160] - For the three months ended October 31, 2025, non-GAAP net income attributable to PagerDuty, Inc. common stockholders was $31,217,000, compared to $23,721,000 for the same period in 2024, representing a 31.5% increase[186] Operating Expenses - Operating expenses decreased to $98.1 million for the three months ended October 31, 2025, from $109.0 million in 2024, a reduction of 10.5%[138] - Total operating expenses decreased by $10,862, or 10.0%, from $108,971 in 2024 to $98,109 in 2025[146] - Research and development expenses decreased by $4,849, or 14.2%, from $34,267 in 2024 to $29,418 in 2025[146] - Sales and marketing expenses decreased by $4,950, or 10.0%, from $49,272 in 2024 to $44,322 in 2025[146] - General and administrative expenses decreased by $1,063, or 4.2%, from $25,432 in 2024 to $24,369 in 2025[146] Cash Flow and Financial Position - Free cash flow for the three months ended October 31, 2025, was $20,929,000, up from $19,443,000 in the same period of 2024, indicating a 7.6% increase[188] - As of October 31, 2025, the company had cash and cash equivalents totaling $547.8 million, which is expected to support working capital and capital expenditure requirements for at least the next 12 months[189] - Net cash provided by operating activities for the nine months ended October 31, 2025, was $89,447,000, an increase of $2,958,000 from $86,489,000 in 2024[196] - Net cash used in financing activities decreased to $105,386,000 for the nine months ended October 31, 2025, compared to $113,323,000 in 2024, reflecting a reduction in stock repurchases[199] Debt and Obligations - Total debt obligations as of October 31, 2025, amounted to $395.1 million, all of which is long-term[194] - The company had $1.0 million of irrevocable standby letters of credit outstanding as of October 31, 2025, primarily used as security deposits for leased spaces[201] Tax and Valuation - The company released $154.2 million of its valuation allowance as a discrete tax benefit during the three months ended October 31, 2025[159] - The company maintains a valuation allowance of $0.8 million against certain deferred tax assets due to realizability uncertainty[170] - The projected non-GAAP tax rate for fiscal 2026 is set at 22% to provide consistency across interim reporting periods[180] Retention and Customer Focus - The dollar-based net retention rate was 100% for the last 12 months ended October 31, 2025, down from 107% in 2024[137] - The company continues to focus on expanding its enterprise customer base, which constitutes the majority of its revenue[127]