Production and Flock Management - Cal-Maine Foods reported an increase of 2.6% in the average number of layer hens and a 12.7% increase in breeder flocks during Q2 of fiscal 2026 compared to the same period last year[92]. - The estimated table-egg layer flock as of December 1, 2025, was approximately 302.8 million, a decrease from 331.4 million in 2021[91]. - The company aims to add approximately 1.1 million cage-free layer hens and 250,000 pullets in fiscal 2026 as part of its expansion projects[92]. - The company’s total flock as of November 29, 2025, was approximately 49.3 million layers and 11.4 million pullets and breeders, the largest in the U.S.[84]. Financial Performance - The company recorded a gross profit of $207.4 million for the second quarter of fiscal 2026, down from $356.0 million in the same period of fiscal 2025, primarily due to a decrease in the net average selling price of shell eggs[102]. - Total net sales for the second quarter of fiscal 2026 were $769.5 million, a decrease of 19.4% compared to $954.7 million for the same period in fiscal 2025[113]. - Shell egg sales represented 84.4% of total net sales in the second quarter of fiscal 2026, down from 94.6% in the same period of fiscal 2025[114]. - Operating income for the second quarter of fiscal 2026 was $123.9 million, compared to $278.1 million for the same period of fiscal 2025[134]. - Net income attributable to Cal-Maine Foods, Inc. for the second quarter ended November 29, 2025, was $102.8 million, or $2.14 per share, down from $219.1 million, or $4.49 per share, in the same period of fiscal 2025[142]. Sales and Pricing - Cage-free egg revenue represented approximately 33.3% of total shell egg revenue in Q2 of fiscal year 2026, up from 23.4% in the same quarter of fiscal year 2025[94]. - The net average selling price per dozen for shell eggs declined 26.5% to $2.014 in the second quarter of fiscal 2026 from $2.740 in the prior-year period, with conventional egg prices dropping 38.8% to $1.802[103]. - Specialty egg sales decreased by $1.3 million, or 0.4%, in the second quarter of fiscal 2026, primarily due to a 0.8% decrease in prices[118]. - Egg products sales rose by $4.3 million, or 14.3%, in the second quarter of fiscal 2026, driven by a 10.1% increase in the net average selling price[121]. - Conventional egg sales decreased by $231.8 million, or 21.0%, for the twenty-six weeks ended November 29, 2025, primarily due to a 19.4% decrease in prices[122]. Acquisitions and Investments - The company acquired assets of Clean Egg, LLC for approximately $23.7 million, which included 677,000 brown cage-free and free-range layers and pullets[96]. - The company acquired Echo Lake Foods, expanding its prepared foods product line, which contributed to a $61.2 million increase in prepared food sales compared to the second quarter of fiscal 2025[109]. - The company acquired ISE America, enhancing its market reach in the Northeast and Mid-Atlantic states with a capacity of approximately 4.7 million laying hens[101]. - The company completed a strategic investment in Crepini LLC, establishing a new egg products and prepared foods venture with a capital of approximately $6.75 million[99]. Costs and Expenses - Farm production costs per dozen produced increased by 2.8%, or $0.03, primarily due to higher facility costs[110]. - Total cost of sales decreased by 6.1% in the second quarter of fiscal 2026, totaling $562.1 million compared to $598.6 million in the same period of fiscal 2025[124]. - Delivery expenses increased by 11.6% in the second quarter of fiscal 2026, primarily due to the acquisition of Echo Lake Foods[129]. - Farm production costs per dozen produced increased by 2.8% in the second quarter of fiscal 2026, totaling $0.926[124]. Cash Flow and Capital Management - Net cash provided by operating activities for the twenty-six weeks ended November 29, 2025, was $373.4 million, up from $240.2 million in the same period of fiscal 2025, driven by increased cash collections and the addition of Echo Lake Foods[145]. - Cash used in investing activities was $246.0 million for the twenty-six weeks ended November 29, 2025, primarily due to acquisitions of Echo Lake Foods and Clean Egg, compared to $247.4 million in the prior-year period[146]. - Cash paid for business acquisitions was $299.0 million in the twenty-six weeks ended November 29, 2025, related to Echo Lake Foods and Clean Egg, compared to $111.5 million in the prior-year period[146]. - Working capital decreased to $1.5 billion as of November 29, 2025, from $1.7 billion at May 31, 2025, while the current ratio increased to 8.0 from 6.4[144]. - The company expects its current cash balances and projected cash flows to be sufficient to fund cash needs for at least the next 12 months[154]. Shareholder Returns - Dividends paid increased to $180.5 million in fiscal 2026 from $87.8 million in the same prior-year period[147]. - A cash dividend of approximately $34.3 million, or $0.719 per share, is scheduled to be paid on February 12, 2026[153]. - The company repurchased 846,037 shares for approximately $74.8 million under its share repurchase program during the twenty-six weeks ended November 29, 2025[151].

Financial Performance - Net sales for the second quarter of fiscal 2026 were $769.5 million, a decrease of 19.4% compared to $954.7 million in the prior year[10] - Gross profit decreased to $207.4 million, down 41.8%, resulting in a gross profit margin of 27.0%[5] - Operating income fell to $123.9 million, down 55.5%, with an operating income margin of 16.1%[5] - Net income attributable to Cal-Maine Foods was $102.8 million, a decline of 53.1%, leading to diluted earnings per share of $2.13, down 52.3%[5] - Net sales for the 13 weeks ended November 29, 2025, were $769,498, a decrease of 19.4% compared to $954,671 for the same period in 2024[28] - Gross profit for the 26 weeks ended November 29, 2025, was $518,700, down 13.9% from $603,260 in 2024[28] - Operating income decreased to $373,053 for the 26 weeks ended November 29, 2025, compared to $465,018 in 2024, reflecting a decline of 19.7%[28] - Net income attributable to Cal-Maine Foods, Inc. for the 13 weeks ended November 29, 2025, was $102,759, down 53.2% from $219,064 in 2024[28] - Basic net income per common share for the 13 weeks ended November 29, 2025, was $2.14, a decrease of 52.3% compared to $4.49 in 2024[28] Sales Composition - Shell egg sales accounted for 84.4% of total net sales, down 1,030 basis points year-over-year, while specialty eggs represented 44.0% of total shell egg sales, an increase of 1,230 basis points[5] - Prepared foods sales surged to $71.7 million, up 586.4% from $10.4 million in the same quarter last year[5] Investments and Future Plans - The company announced a $36 million investment to expand prepared foods production capacity by over 30% over the next two years[5] - Cal-Maine Foods plans to continue focusing on specialty and prepared foods to drive growth and improve long-term earnings visibility[17] - The company expects ongoing sales mix shifts to enhance earnings durability and predictability over time[9] Balance Sheet Highlights - Total assets increased to $3,144,064 as of November 29, 2025, compared to $3,084,619 on May 31, 2025, representing a growth of 1.9%[30] - Cash and short-term investments decreased to $1,138,988 from $1,392,100, a decline of 18.2%[30] - Stockholders' equity rose to $2,697,766 as of November 29, 2025, up 5.1% from $2,566,015 on May 31, 2025[30] - Current liabilities decreased to $218,828 from $308,371, a reduction of 29.1%[30] Other Income - The company reported other income of $26,291 for the 26 weeks ended November 29, 2025, an increase of 20.5% from $21,896 in 2024[28]

Company Overview - The company is listed on the New York Stock Exchange under the symbol CNK[5] Achievements - Cinemark Holdings, Inc. announced significant achievements for the year 2025 in a press release dated January 6, 2026[6] - The press release detailing the 2025 achievements is included as Exhibit 99.1 in the current report[8]

Sales Performance - Consolidated sales for Q2 fiscal 2026 increased by $109.2 million, or 15.9%, compared to the prior year quarter, driven by strong demand in commercial customer sales [194]. - Sales to commercial customers rose by $66.2 million, or 13.2%, primarily due to growth in new parts Distribution activities, including $19.3 million from the recent ADI acquisition [194]. - Sales to government customers increased by $43.0 million, or 23.1%, mainly due to volume growth in the Parts Supply segment [194]. - For the six-month period ended November 30, 2025, the Parts Supply segment reported third-party sales of $671.4 million, a 28.3% increase from $523.4 million in the prior year [219]. - The Repair & Engineering segment saw a 2.8% increase in third-party sales to $459.1 million, with operating income slightly decreasing by 1.8% to $43.1 million [221]. - The Integrated Solutions segment's third-party sales rose by 8.6% to $360.8 million, with operating income increasing by 66.2% to $23.6 million [223]. - The Expeditionary Services segment experienced a 4.6% decline in sales to $43.6 million, but operating income surged by 980.0% to $5.4 million due to the impact of contract termination [226][227]. Profitability - Consolidated gross profit for Q2 fiscal 2026 increased by $28.3 million, or 22.0%, with government customer gross profit rising by $16.0 million, or 51.9% [196]. - The gross profit margin on sales to government customers improved to 20.4% from 16.6% in the prior year quarter [196]. - Operating income in the Parts Supply segment increased by $20.1 million, or 32.6%, to $81.8 million, driven by improved profitability from increased sales volume [220]. Expenses and Taxation - Selling, general, and administrative expenses decreased by $44.4 million, or 33.4%, from the prior year quarter, primarily due to the settlement of FCPA matters [198]. - The effective income tax rate for continuing operations was 28.1% for Q2 fiscal 2026, down from 36.0% in the prior year quarter [201]. - The effective income tax rate for continuing operations was 27.4% for the six-month period ended November 30, 2025, compared to an income tax expense of $15.0 million in the prior year [210]. Acquisitions and Investments - The company acquired American Distributors Holding Co. for $137.7 million, enhancing its distribution capabilities in the aerospace and defense industry [179]. - The company is expanding its Miami and Oklahoma City airframe maintenance facilities, with the Miami facility expected to be completed in mid-to-late calendar 2026 [182]. - The company expects long-term growth in aviation products and services, emphasizing investments in both commercial and government markets [192]. Liquidity and Financing - As of November 30, 2025, the company had liquidity and capital resources of $1,096.1 million, including cash of $75.6 million [229]. - The company entered into an amendment to its revolving credit facility, increasing commitments to $825.0 million from $620.0 million [230]. - Borrowings outstanding under the amended revolving credit facility were $260.0 million, with $10.0 million in outstanding letters of credit [232]. - The company issued $550.0 million in Senior Notes at a 6.75% interest rate to fund part of the acquisition of the Product Support business [233]. - The maximum amount of receivables sold under the Purchase Agreement with Citibank N.A. is limited to $150.0 million, with $20.5 million utilized as of November 30, 2025, reducing availability to $129.5 million [237][238]. - In Q2 of fiscal 2026, the company sold 3,450,000 shares of common stock at $83.00 per share, resulting in net proceeds of $273.9 million after expenses [239]. - The stock repurchase program allows for up to $150 million in repurchases, with 2.4 million shares repurchased for an aggregate price of $107.5 million since inception, but no repurchases occurred in the last six months [240]. - Net cash used in operating activities was $31.3 million for the six months ended November 30, 2025, a decrease of $34.7 million compared to the prior year [241]. - Net cash used in investing activities increased to $237.1 million for the six months ended November 30, 2025, primarily due to acquisitions of ADI and HAECO Americas [242]. - Net cash provided by financing activities was $255.4 million for the six months ended November 30, 2025, an increase of $259.2 million compared to the prior year, largely due to the common stock offering [243]. Risks and Accounting Policies - There have been no significant changes to critical accounting policies during the second quarter of fiscal 2026 [244]. - The company faces various risks that could materially affect future results, including competition, operational management, and integration of acquisitions [248]. - A hypothetical 10 percent devaluation of the U.S. dollar against foreign currencies would not have had a material impact on the financial position for the quarter ended November 30, 2025 [251]. - There were no significant changes in interest rate risk during the quarter ended November 30, 2025 [252].

Exhibit 10.1 SECOND AMENDMENT TO CREDIT AGREEMENT dated as of January 2, 2026 among MURPHY OIL CORPORATION, MURPHY EXPLORATION & PRODUCTION COMPANY – INTERNATIONAL, and MURPHY OIL COMPANY LTD., as Borrowers Section 1. Defined Terms. Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement (as amended hereby). Unless otherwise indicated, all references to Sections and Articles in this Second Amendment refer to Sections and Articles of the Cred ...

Financial Performance - Total net sales for the three months ended November 28, 2025, were $343,071,000, a slight increase from $341,102,000 for the same period in 2024, representing a growth of 0.6%[18] - Gross profit for the three months ended November 28, 2025, was $96,109,000, compared to $97,812,000 in the prior year, indicating a decrease of 1.7%[18] - Operating income increased to $19,582,000 for the three months ended November 28, 2025, up from $17,356,000 in the same period of 2024, reflecting a growth of 12.8%[18] - Net income attributable to Penguin Solutions for the three months ended November 28, 2025, was $5,270,000, slightly higher than $5,217,000 for the same period in 2024, an increase of 1.0%[18] - Earnings per share (basic and diluted) for the three months ended November 28, 2025, were both $0.04, down from $0.10 in the prior year, a decrease of 60%[18] - Cash flows from operating activities for the three months ended November 28, 2025, were $31,058,000, significantly higher than $13,819,000 for the same period in 2024, an increase of 125.5%[23] - Total net sales for the three months ended November 28, 2025, were $343,071,000, a slight increase from $341,102,000 in the same period last year[18] - Net income attributable to common stockholders for Q1 2026 was $2.0 million, compared to $5.2 million in Q1 2025, a decrease of approximately 61.5%[103] - Basic earnings per share (EPS) for Q1 2026 was $0.04, down from $0.10 in Q1 2025, reflecting the decline in net income[103] Assets and Liabilities - As of November 28, 2025, total assets decreased to $1,598,195 thousand from $1,617,200 thousand as of August 29, 2025, reflecting a decline of approximately 1.5%[17] - Total current liabilities decreased to $458,110 thousand from $473,899 thousand, a decline of approximately 3.3%[17] - Total liabilities decreased to $993,726,000 as of November 28, 2025, from $1,008,973,000 as of August 29, 2025[17] - Long-term debt remained relatively stable at $442,333 thousand compared to $441,893 thousand, showing minimal change[17] - Long-term debt as of November 28, 2025, was $442.3 million, slightly up from $441.9 million as of August 29, 2025[46] - Accounts payable increased to $304.9 million as of November 28, 2025, from $267.5 million as of August 29, 2025, reflecting a rise in operational liabilities[45] Cash and Cash Equivalents - Cash and cash equivalents increased to $461,451 thousand from $453,754 thousand, showing a growth of about 1.5%[17] - Cash, cash equivalents, and restricted cash at the end of the period on November 28, 2025, totaled $461,767,000, compared to $370,611,000 at the end of the same period in 2024, an increase of 24.6%[23] - As of November 28, 2025, cash and cash equivalents totaled $434.3 million, an increase from $426.9 million as of August 29, 2025[33] Shareholder Activities - The company repurchased shares amounting to $20,193,000 during the three months ended November 28, 2025, compared to $11,123,000 in the same period of 2024, an increase of 81.5%[23] - The company declared and paid preferred cash dividends of $3.1 million in Q1 2026, with accrued preferred dividends of $0.4 million as of November 28, 2025[72] - The Board of Directors approved a total of $225.0 million in stock repurchase authorizations, with $96.5 million remaining available as of November 28, 2025[77] - In Q1 2026, the company repurchased 791 thousand shares for $15.0 million, and in Q1 2025, 467 thousand shares for $7.8 million under the current authorizations[77] Strategic Initiatives - The company is focusing on strategic initiatives, including rebranding and potential acquisitions, to enhance its market position and operational efficiency[8] - The company anticipates continued growth in technology industries, particularly in artificial intelligence, despite potential macroeconomic challenges[8] - The company expects to recognize $47.9 million of the deferred revenue balance in the next 12 months[90] - The company anticipates additional restructuring activities in future quarters, which may lead to further charges[94] Research and Development - Research and development expenses for the three months ended November 28, 2025, were $18,693,000, down from $19,811,000 in the prior year, a decrease of 5.6%[18] Impairments and Charges - The company reported a loss on impairment of non-marketable equity investment of $10,000,000 for the three months ended November 28, 2025, which was not present in the prior year[23] - The company recognized a full impairment charge of $10.0 million for a non-marketable equity investment during the quarter ended November 28, 2025, reducing the carrying amount of the investment to zero[38] - Restructuring charges amounted to $4.7 million in Q1 2026, significantly higher than $0.1 million in Q1 2025, reflecting a strategic shift in operations[94] Segment Performance - Advanced Computing segment sales decreased to $151.452 million from $177.426 million, a decline of 14.6% year-over-year[109] - Integrated Memory segment sales increased significantly to $136.521 million from $96.706 million, a growth of 41.2% year-over-year[109] - Total costs of goods sold rose to $240.150 million from $235.980 million, an increase of 1.0%[109] - Total operating expenses decreased to $61.393 million from $64.204 million, a reduction of 4.2%[109] - Segment operating income increased to $41.528 million from $40.918 million, a growth of 1.5%[109] Other Financial Metrics - The effective tax rate for Q1 2026 was 23.0%, down from 51.6% in Q1 2025, primarily due to changes in tax liabilities and operational adjustments[99] - The company recognized revenue of $32.2 million from AI hardware solutions and installation services during the quarter, with $15.1 million remaining in accounts receivable as of November 28, 2025[112] - The company is expected to sell its equity interest in Zilia Technologies for a gross cash purchase price of $46.1 million, with the transaction expected to close by March 30, 2026[114] - The carrying value of the investment in Zilia Technologies was $37.8 million as of November 28, 2025[115]

Financial Position - As of November 28, 2025, total assets of Penguin Solutions amounted to $1,598,195,000, a decrease from $1,617,200,000 as of August 29, 2025[17] - Total current liabilities decreased to $458,110,000 from $473,899,000, a reduction of approximately 3.5%[17] - Long-term debt remained relatively stable at $442,333,000 compared to $441,893,000, showing minimal change[17] - Total stockholders' equity decreased to $401,759,000 from $405,517,000, a decline of about 0.2%[17] - Total liabilities decreased to $993,726,000 from $1,008,973,000, a reduction of 1.5%[17] Revenue and Sales Performance - Total net sales for the three months ended November 28, 2025, were $343,071,000, a slight increase from $341,102,000 for the same period in 2024, representing a growth of 0.6%[18] - Advanced Computing segment sales decreased to $151.5 million from $177.4 million, a decline of 14.6% year-over-year[109] - Integrated Memory segment sales increased significantly to $136.5 million from $96.7 million, marking a growth of 41.2%[109] Profitability Metrics - Gross profit for the three months ended November 28, 2025, was $96,109,000, compared to $97,812,000 in the prior year, indicating a decrease of 1.7%[18] - Operating income increased to $19,582,000 for the three months ended November 28, 2025, up from $17,356,000 in the same period of 2024, reflecting a growth of 12.8%[18] - Net income attributable to Penguin Solutions for the three months ended November 28, 2025, was $5,270,000, slightly higher than $5,217,000 for the same period in 2024, showing an increase of 1.0%[18] - Earnings per share (basic and diluted) for the three months ended November 28, 2025, were both $0.04, down from $0.10 in the prior year, a decrease of 60%[18] Cash Flow and Liquidity - Cash flows from operating activities for the three months ended November 28, 2025, were $31,058,000, significantly higher than $13,819,000 for the same period in 2024, representing an increase of 125.5%[23] - Cash, cash equivalents, and restricted cash at the end of the period on November 28, 2025, totaled $461,767,000, compared to $370,611,000 at the end of the same period in 2024, an increase of 24.6%[23] - Cash and cash equivalents increased to $461,451,000 from $453,754,000, indicating a growth of approximately 0.15%[17] Expenses and Cost Management - Research and development expenses for the three months ended November 28, 2025, were $18,693,000, down from $19,811,000 in the prior year, a decrease of 5.6%[18] - Total operating expenses decreased to $61.4 million from $64.2 million, a reduction of 4.4%[109] - Stock-based compensation expense for continuing operations decreased from $11.5 million in Q1 2025 to $10.1 million in Q1 2026, with significant reductions in cost of sales and R&D expenses[86] Shareholder Activities - The company repurchased shares amounting to $20,193,000 during the three months ended November 28, 2025, compared to $11,123,000 in the same period of 2024, an increase of 81.5%[23] - The company declared and paid preferred cash dividends of $3.1 million in Q1 2026, with accrued preferred dividends of $0.4 million as of November 28, 2025[72] - The company approved a total of $225.0 million in stock repurchase authorizations, with $96.5 million remaining available as of November 28, 2025[77] Impairments and Restructuring - The company reported a loss on impairment of non-marketable equity investment of $10,000,000 for the three months ended November 28, 2025[23] - Restructuring charges amounted to $4.7 million in Q1 2026, up from $0.1 million in Q1 2025, indicating ongoing workforce adjustments[94] - The company recognized a full impairment charge of $10.0 million for a non-marketable equity investment during the quarter ended November 28, 2025, reducing its carrying amount to zero[38] Inventory and Accounts Management - Total inventories decreased from $255.2 million as of August 29, 2025, to $213.2 million as of November 28, 2025, with raw materials increasing to $108.3 million[41] - Accounts receivable, net rose to $326,892,000, up from $307,904,000, reflecting an increase of about 6.4%[17] - Accounts payable increased to $304.9 million as of November 28, 2025, from $267.5 million as of August 29, 2025[45] Debt and Financing - The company has a revolving credit facility of $400.0 million under the 2025 Credit Agreement, maturing on June 24, 2030[49] - The effective interest rates for the Convertible Senior Notes are 2.83% for the 2026 Notes, 2.40% for the 2029 Notes, and 2.65% for the 2030 Notes as of November 28, 2025[52] - As of November 28, 2025, the total debt maturities include $20.0 million due in 2026, $150.0 million in 2029, and $300.0 million in 2030, totaling $462.3 million after accounting for unamortized costs[53] Future Outlook and Strategic Initiatives - The company is in the process of selling its equity interest in Zilia Technologies for a gross cash purchase price of $46.1 million, expected to close by April 28, 2026[114] - The company is evaluating the impact of several recently issued accounting standards, including ASU 2025-06 and ASU 2025-05, on its consolidated financial statements[29][30]

Financial Performance - Total sales for Q2 FY2026 reached $795 million, a 16% increase compared to $686.1 million in Q2 FY2025[11] - Organic sales growth was 12%, with Parts Supply business sales up 29% and new parts Distribution achieving 32% organic sales growth[3] - Adjusted EBITDA increased by 23% to $97 million, with adjusted EBITDA margin rising from 11.4% to 12.1%[4] - The company reported adjusted diluted EPS of $1.18, a 31% increase from $0.90 in the same quarter last year[6] - Sales for the three months ended November 30, 2025, reached $795.3 million, a 15.9% increase compared to $686.1 million in the same period of 2024[41] - Adjusted EBITDA for the three months ended November 30, 2025, was $96.5 million, compared to $78.4 million for the same period in 2024, indicating a 23.3% increase[42] - Adjusted net income for the three months ended November 30, 2025, was $45.4 million, compared to $32.3 million for the same period in 2024, reflecting a year-over-year increase of 40.6%[39] - Adjusted diluted earnings per share for the three months ended November 30, 2025, was $1.18, up from $0.90 in the same period of 2024, representing a 31.1% increase[40] - Net income for the three months ended November 30, 2025, was $34.6 million, a significant recovery from a net loss of $30.6 million in the same period of 2024[28] - Earnings per share (EPS) for the three months ended November 30, 2025, was $0.91, compared to a loss per share of $0.87 in the same period of 2024[28] Strategic Acquisitions - AAR completed two strategic acquisitions: ADI for $138 million and HAECO Americas for $77 million, enhancing its Parts Supply and Repair & Engineering segments[15] - AAR secured $850 million in airframe heavy maintenance contracts as part of the HAECO Americas acquisition, effectively selling out acquired capacity for several years[7] Sales Growth and Segments - Sales to government customers increased by 23%, driven by higher order volumes for new parts Distribution activities[11] - Parts Supply segment sales for the three months ended November 30, 2025, were $353.6 million, up 29.2% from $273.7 million in 2024[35] - Integrated Solutions segment operating income increased to $13.9 million for the three months ended November 30, 2025, compared to $6.5 million in 2024[35] - Organic sales growth for the three months ended November 30, 2025, was 12.2%, after accounting for the impact of divestitures and acquisitions[41] Financial Health and Leverage - Net leverage stood at 2.49x, indicating a strong balance sheet with capacity for further investments[8] - The net debt at November 30, 2025, was $884.4 million, down from $935.3 million at the same time in 2024[42] - The net debt to adjusted EBITDA ratio as of November 30, 2025, was 2.49, indicating a manageable leverage position[43] Cash Flow and Operating Activities - Cash flow from operating activities was $13.6 million, down from $22 million in the prior year quarter[17] - Cash provided by operating activities for the three months ended November 30, 2025, was $13.6 million, a decrease from $22.0 million in the same period of 2024[41] - The company incurred $14.2 million in acquisition, integration, and amortization expenses for the three months ended November 30, 2025[39] Future Outlook - The company expects total sales growth of 20% to 22% for Q3 FY2026 and adjusted operating margin between 9.8% and 10.1%[18] Asset Management - Total assets increased to $3,242.5 million as of November 30, 2025, up from $2,844.6 million as of May 31, 2025[31] - Cash and cash equivalents at the end of the period were $96.2 million, compared to $82.5 million at the end of the same period in 2024[32] - Gross profit for the six months ended November 30, 2025, rose to $290.6 million, compared to $245.8 million in 2024, reflecting a 18.2% increase[28]

Financial Distribution - MV Oil Trust announced a distribution of net profits amounting to $1,610,000 or $0.140 per unit for the quarterly payment period ended December 31, 2025[2]. - The total volume for the payment period was 143,087 BOE, with an average price of $56.60 per BOE, resulting in gross proceeds of $8,098,708[3]. - Net profits for the period were reported at $2,295,546, with the Trust's applicable net profits interest being $1,836,437[3]. - The Trust's net cash proceeds available for distribution after estimated expenses were $1,610,000[3]. Termination and Risks - The net profits interest is set to terminate on June 30, 2026, after which the Trust will dissolve and cease distributions[4]. - The market price of the Trust units is expected to decline to zero upon termination of the net profits interest[5]. - There is a risk of delisting from the NYSE if the Trust units fall below the minimum price requirement of $1.00[7]. - If delisted, the Trust units may be transferred to the OTC market, which could negatively impact trading volume and liquidity[8]. - The Trust may not be able to maintain compliance with the NYSE's minimum price requirement prior to the termination date[9]. Forward-Looking Statements - Forward-looking statements indicate uncertainty regarding future distributions and trading prices of the Trust units[10].

Financial Performance - Net sales for Q1 fiscal 2026 were $343 million, representing a 1% increase compared to the same quarter last year[5]. - GAAP gross margin decreased to 28.0%, down 70 basis points year-over-year, while non-GAAP gross margin decreased to 30.0%, down 80 basis points[5]. - GAAP diluted EPS for Q1 fiscal 2026 was $0.04, compared to $0.10 in the same quarter last year, while non-GAAP diluted EPS remained at $0.49[5]. - Operating income for Q1 fiscal 2026 was $19.6 million, compared to $17.4 million in the same quarter last year[6]. - Net income attributable to Penguin Solutions for Q1 fiscal 2026 was $5.3 million, compared to $5.2 million in the same quarter last year[6]. - Total net sales for the three months ended November 28, 2025, were $343.071 million, a slight increase from $337.922 million in the previous quarter and a decrease from $341.102 million in the same quarter last year[24]. - Advanced Computing segment sales reached $151.452 million, up from $138.336 million in the previous quarter but down from $177.426 million year-over-year[24]. - Integrated Memory segment sales were $136.521 million, compared to $132.159 million in the previous quarter and significantly up from $96.706 million year-over-year[24]. - Gross profit for the three months ended November 28, 2025, was $96.109 million, resulting in a gross margin of 28.0%[25]. - Operating income increased to $19.582 million from $12.448 million in the previous quarter, reflecting improved operational efficiency[24]. - Net income attributable to Penguin Solutions was $5.270 million, down from $9.431 million in the previous quarter but slightly up from $5.217 million year-over-year[24]. - Non-GAAP operating income for the three months ended November 28, 2025, was $41.528 million, compared to $39.170 million in the previous quarter[25]. - The company reported a GAAP operating margin of 5.7% for the quarter, with a non-GAAP operating margin of 12.1%[25]. - Non-GAAP net income attributable to Penguin Solutions increased to $32,391,000 for the three months ended November 28, 2025, from $28,843,000 in the previous quarter, representing a growth of 5.4%[26]. Future Projections - The company expects net sales growth of 6% year-over-year for fiscal 2026, with a margin of +/-10%[8]. - Projected GAAP gross margin for fiscal 2026 is 27% +/- 1%, while non-GAAP gross margin is projected at 29% +/- 1%[8]. - Operating expenses are expected to be $307 million +/- $10 million for fiscal 2026, with non-GAAP operating expenses projected at $250 million +/- $10 million[8]. Corporate Actions - The company has agreed to divest its remaining 19% interest in Zilia Technologies for a purchase price of $46.08 million, expected to close by April 28, 2026[3]. - The company completed the redomiciliation from the Cayman Islands to Delaware on June 30, 2025, affecting its corporate structure and stock classification[21]. Balance Sheet Highlights - Total assets decreased to $1,598,195,000 as of November 28, 2025, from $1,617,200,000 as of August 29, 2025[27]. - Cash and cash equivalents increased to $461,451,000 as of November 28, 2025, compared to $453,754,000 as of August 29, 2025[27]. - Net cash provided by operating activities was $31,058,000 for the three months ended November 28, 2025, compared to a net cash used of $70,432,000 in the previous quarter[28]. - Accounts receivable increased to $326,892,000 as of November 28, 2025, from $307,904,000 as of August 29, 2025[27]. - Inventories decreased to $213,205,000 as of November 28, 2025, from $255,182,000 as of August 29, 2025[27]. - Total current liabilities decreased to $458,110,000 as of November 28, 2025, from $473,899,000 as of August 29, 2025[27]. Research and Development - Research and development expenses were $18.693 million, a decrease from $19.861 million in the previous quarter[24].