Sales Performance - For the three months ended September 30, 2025, total net sales increased by $28.3 million, or 31.2%, compared to the prior year period, primarily driven by the Stoker's products segment [144]. - Zig-Zag products segment net sales decreased by $5.2 million, or 10.5%, due to declines in U.S. papers and wraps, and the Clipper lighter business [145]. - Stoker's products segment net sales increased by $33.4 million, or 80.8%, with sales volume increasing by 69.0% and price/product mix contributing an additional 11.8% [146]. - For the nine months ended September 30, 2025, consolidated net sales increased by $75.1 million, or 28.1%, compared to the prior year period, primarily driven by the Stoker's products segment [165]. - Net sales in the Zig-Zag products segment decreased by $8.1 million, or 5.5%, due to declines in U.S. papers and wraps, and cigar products [166]. - Net sales in the Stoker's products segment increased by $83.1 million, or 69.0%, with sales volume up 62.9% and price/product mix contributing an additional 6.1% [167]. - Net sales for Q3 2025 reached $118.979 million, a 31% increase from $90.704 million in Q3 2024 [217]. - For the nine months ended September 30, 2025, net sales totaled $342.049 million, a 28% increase from $266.993 million in the same period of 2024 [217]. Profitability - Consolidated gross profit increased by $20.0 million, or 39.7%, with gross profit as a percentage of net sales rising to 59.2% [147]. - Consolidated gross profit increased by $47.5 million, or 31.9%, with gross profit as a percentage of net sales rising to 57.5% [168]. - Gross profit for Q3 2025 was $70.427 million, compared to $50.395 million in Q3 2024, reflecting a 39.8% increase [217]. - Operating income for Q3 2025 was $25.885 million, up from $20.805 million in Q3 2024, representing a 24.5% increase [217]. - Consolidated net income from continuing operations increased by $11.2 million, or 89.7%, reaching $23.8 million [143]. - Consolidated net income for Q3 2025 was $23.757 million, compared to $12.525 million in Q3 2024, marking an increase of 89.5% [217]. - Net income attributable to Turning Point Brands, Inc. for the nine months ended September 30, 2025, was $50.0 million, compared to $37.6 million in the prior year [184]. - For the three months ended September 30, 2025, net income attributable to Turning Point Brands, Inc. was $21.1 million, compared to $12.4 million for the same period in 2024, representing an increase of 70% [188]. Expenses - Selling, general, and administrative expenses increased by $15.0 million, or 50.5%, primarily due to increased shipping and selling costs related to modern oral sales [150]. - Selling, general, and administrative expenses increased by $33.4 million, or 38.0%, primarily due to increased shipping and selling costs related to modern oral sales [171]. - Consolidated operating income increased by $5.1 million, or 24.4%, but operating income as a percentage of net sales decreased to 21.8% [152]. - Consolidated operating income increased by $12.5 million, or 19.8%, but as a percentage of net sales decreased to 22.0% [174]. Cash Flow and Liquidity - Cash provided by operating activities for the nine months ended September 30, 2025, was $32.5 million, a decrease of $12.4 million compared to the prior year period [196]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $28.4 million, an increase of $19.3 million compared to the prior year period, mainly due to the purchase of an option to acquire the Canadian distribution business for $8 million [197]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $148.3 million, an increase of $275.8 million compared to the prior year period, driven by proceeds from the ATM Program of $97.5 million [198]. - The company expects to have ample liquidity to satisfy its operating cash requirements for the foreseeable future due to strong cash balance and free cash flow generation [192]. - As of September 30, 2025, the company had $201.2 million in cash and $66.6 million available under the 2023 ABL Facility, with no borrowings outstanding [191]. Debt and Financing - As of September 30, 2025, the Company had $293.4 million in long-term debt, consisting of the newly issued 2032 Notes [202]. - The Company closed a private offering of $250.0 million aggregate principal amount of 5.625% senior secured notes due 2026, with interest payable semi-annually [206]. - The company entered into an ATM Program to increase the aggregate dollar amount of shares of common stock it may sell by an additional $200 million, with gross proceeds of $100 million from shares sold between August 15, 2025, and September 11, 2025 [193]. - The 2023 ABL Facility allows the Company to draw up to $75.0 million, with a $40.0 million accordion feature, secured by all assets of the ABL Borrower [209]. - The Company incurred debt issuance costs of $7.1 million related to the 2032 Notes, amortized over the expected life of the notes [205]. - The Company has not drawn any borrowings under the 2023 ABL Facility but incurred debt issuance costs of $2.6 million related to it [214]. - The 2032 Notes Indenture includes covenants that restrict the Company from incurring additional indebtedness and paying dividends under certain conditions [204]. Assets and Liabilities - Total current assets as of September 30, 2025, were $396.436 million, compared to $349.405 million as of September 30, 2024 [218]. - Total liabilities as of September 30, 2025, were $384.695 million, an increase from $365.923 million as of September 30, 2024 [218]. - Cash and cash equivalents as of September 30, 2025, amounted to $201.189 million, up from $167.917 million in the previous year [218]. - Total stockholders' equity as of September 30, 2025, was $358.153 million, compared to $314.413 million as of September 30, 2024 [218]. - Current liabilities totaled $44,820 million, with accounts payable at $11,675 million [219]. - Goodwill on the balance sheet was recorded at $135,932 million [219]. Market and Economic Conditions - Inflation has negatively impacted purchasing power, but the company has managed to implement price increases where feasible [221]. - No material changes in exposure to foreign currency, credit risk, or interest rate sensitivity reported for the nine months ended September 30, 2025 [222][223][224].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 Alameda, CA 94502 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_____ to _____ Commission File Number: 001-37557 Penumbra, Inc. (Exact name of registrant as specified in its charter) (State or other ju ...

Financial Performance - Total revenues for the three months ended September 30, 2025, were $328.6 million, compared to $327.7 million for the same period in 2024, reflecting a slight increase of 0.3%[13] - Net income for the three months ended September 30, 2025, was $36.6 million, down from $41.8 million in the same period of 2024, representing a decrease of 5.2%[13] - Operating income for the nine months ended September 30, 2025, was $11.1 million, significantly lower than $259.1 million for the same period in 2024, indicating a decline of 95.7%[13] - For the nine months ended September 30, 2025, the net income was $36.6 million compared to $41.8 million for the same period in 2024, reflecting a decrease of approximately 12%[30] - Net income for the three months ended September 30, 2025, was $36.6 million, resulting in a basic net income per share of $0.70[48] - The Company reported a net income of $34.0 million for the nine months ended September 30, 2025, a significant decrease from $249.5 million in the same period of 2024[77] Cash and Liquidity - Cash and cash equivalents as of September 30, 2025, were $336.3 million, down from $491.5 million at the end of 2024, a decrease of 31.6%[16] - The company reported a net cash provided by operating activities of $153.2 million for the nine months ended September 30, 2025, down from $313.2 million in the same period of 2024, a decrease of 51.0%[18] - The Company incurred a net cash used in investing activities of $305.9 million for the nine months ended September 30, 2025, compared to $395.8 million in the same period of 2024, a decrease of 22.7%[18] - As of September 30, 2025, the Company had $140.5 million available under the Amended ABL Facility, with no loans outstanding and $2.5 million in letters of credit issued[44] Assets and Liabilities - Total assets increased to $2.68 billion as of September 30, 2025, compared to $2.59 billion at the end of 2024, marking an increase of 3.5%[16] - Total liabilities increased to $564.8 million as of September 30, 2025, compared to $500.7 million at the end of 2024, an increase of 12.8%[16] - Total stockholders' equity as of September 30, 2025, was $2.12 billion, an increase from $2.09 billion at the end of 2024, representing a growth of about 1.4%[30] - The Company had total debt of $154.1 million as of September 30, 2025, slightly up from $153.6 million at the end of 2024, reflecting a marginal increase of about 0.3%[40] Inventory and Capital Expenditures - The balance of inventories, net, as of September 30, 2025, was $219.1 million, up from $207.6 million at the end of 2024, indicating an increase of approximately 5.5%[36] - Capital expenditures for the Mining segment were $222.6 million for the nine months ended September 30, 2025, down from $321.1 million in the prior year, a decrease of 30.6%[75] Segment Performance - The Mining segment generated revenues of $903.4 million for the nine months ended September 30, 2025, down from $1.21 billion in the prior year, reflecting a decline of 25.4%[75] - Segment profit for the Mining segment was $191.7 million for the nine months ended September 30, 2025, compared to $429.9 million for the same period in 2024, representing a decrease of 55.4%[75] - The Company’s cash cost of sales (exclusive of depreciation and depletion) for the Mining segment was $705.7 million for the nine months ended September 30, 2025, compared to $773.6 million in the prior year, a decrease of 8.8%[75] Dividends and Share Repurchase - The company paid dividends of $0.08 per share for the three months ended September 30, 2025, consistent with the same period in 2024[13] - The Company declared a special dividend of $0.50 per share on February 9, 2024, along with quarterly dividends of $0.08 per share[60] - The Company repurchased 500,000 shares for approximately $10.6 million under its New Stock Repurchase Program, leaving $59.4 million authorized for future repurchases[59] Other Financial Activities - The effective income tax benefit for the nine months ended September 30, 2025, was $15.5 million, compared to an expense of $32.2 million for the same period in 2024, indicating a significant improvement[38] - The Company reported additional paid-in capital of $296.0 million as of September 30, 2025, compared to $282.7 million at the end of 2024, marking an increase of about 4.7%[30] - The Company’s long-term investments in fixed income securities amounted to $2.0 million as of September 30, 2025, down from $44.6 million at the end of 2024, reflecting a significant decrease of approximately 95.5%[31] - The Company had realized losses of $0.2 million and $1.1 million from natural gas swap contracts for the three and nine months ended September 30, 2025, respectively[63] - Coal royalty expenses for the three months ended September 30, 2025, were $17.6 million, compared to $25.6 million for the same period in 2024[54] Financing and Lease Obligations - Finance lease right-of-use assets increased to $138.4 million as of September 30, 2025, compared to $56.7 million as of December 31, 2024[46] - The total finance lease liabilities rose to $82.5 million as of September 30, 2025, up from $19.4 million at the end of 2024[46] - The weighted average remaining lease term for finance leases increased to 66.7 months as of September 30, 2025, from 17.9 months at the end of 2024[46] Miscellaneous - The Company continues to engage in negotiations for a new Collective Bargaining Agreement with the labor union, which expired on April 1, 2021, indicating ongoing labor relations efforts[24] - The estimated fair value of the Company's Notes as of September 30, 2025, was approximately $159.3 million based on observable market data[69] - The Company had 1,500,000 metric million British thermal unit gas swap contracts outstanding as of September 30, 2025, to hedge against natural gas price fluctuations[177] - The Company increased its Amended ABL Facility commitments by $27.0 million to a total of $143.0 million, with a maturity date extended to August 28, 2030[43]

Financial Performance - Net Investment Income (NII) for Q3 2025 was $1.8 million, or $0.08 per share, down from $3.3 million, or $0.15 per share in Q2 2025[3][8] - Adjusted Net Investment Income for Q3 2025 was $1.9 million, or $0.09 per share, compared to $3.3 million, or $0.15 per share in the previous quarter[4][8] - Total investment income for Q3 2025 was $8.2 million, down from $9.9 million in Q2 2025, primarily due to declines in dividend income and interest income[9] - Total investment income decreased to $8,206,000 for the quarter ended September 30, 2025, down 16.9% from $9,873,000 in the previous quarter[23] - Net investment income before income taxes was $1,883,000, a decline of 42.2% compared to $3,255,000 in the prior quarter[23] - Net increase in net assets resulting from operations was a loss of $1,137,000, compared to a loss of $1,869,000 in the previous quarter[23] - The company reported a net realized loss of $2,378,000 from non-controlled/non-affiliate company investments for the quarter[23] Asset and Liability Management - Net Asset Value (NAV) decreased to $173.0 million, or $7.99 per share, from $179.6 million, or $8.29 per share in Q2 2025[4][6] - Total assets decreased to $388,952,000 as of September 30, 2025, down from $394,617,000 at the end of the previous quarter[21] - Total liabilities increased slightly to $215,914,000 from $215,025,000 in the previous quarter[21] - Net asset value per share decreased to $7.99 from $8.29 in the previous quarter[21] Investment and Portfolio Management - The number of portfolio company investments decreased to 79 from 80 in the previous quarter[7] - The percentage of portfolio company investments on non-accrual status was 3.5%, slightly down from 3.6% in Q2 2025[7] - Interest income from non-controlled/non-affiliate company investments was $5,463,000, down from $6,757,000 in the previous quarter[23] Expenses and Cost Management - Total expenses for Q3 2025 were $6.4 million, a decrease from $6.6 million in Q2 2025, mainly due to lower professional fees and management fees[10] - Total operating expenses were $6,323,000, a decrease from $6,618,000 in the prior quarter[23] Future Outlook - The company anticipates closing its merger with Horizon Technology Finance Corporation in Q1 2026, which is expected to unlock value for shareholders[2] - The company continues to focus on maximizing total return to stockholders through current income and capital appreciation[25] Debt Management - The company's debt-to-equity leverage increased to 1.23 times as of September 30, 2025, from 1.17 times at the end of Q2 2025[5] - As of September 30, 2025, the company had $3.5 million in cash and cash equivalents and $82.8 million of debt outstanding on its revolving credit facility[13]

Financial Performance - Net interest income for the three months ended September 30, 2025, was $21,153 thousand, an increase of 18.14% compared to $17,856 thousand for the same period in 2024 [13]. - Net income for the three months ended September 30, 2025, was $6,179 thousand, a 14.81% increase from $5,381 thousand in the same period of 2024 [13]. - Basic earnings per common share increased to $0.57 for the three months ended September 30, 2025, compared to $0.55 for the same period in 2024, reflecting a growth of 3.64% [13]. - Net income for the nine months ended September 30, 2025, was $16,966,000, an increase from $14,145,000 in the same period of 2024, representing a growth of 19.9% [19]. - The company reported a total comprehensive income of $10,439 thousand for the three months ended September 30, 2025, compared to $15,903 thousand for the same period in 2024 [15]. Assets and Equity - Total assets increased to $2,800,628 thousand as of September 30, 2025, up from $2,722,812 thousand at December 31, 2024, representing a growth of 2.86% [11]. - Total stockholders' equity increased to $295,295 thousand as of September 30, 2025, from $241,296 thousand at December 31, 2024, representing a growth of 22.39% [11]. - Total stockholders' equity at the end of the period on September 30, 2025, was $295,295,000, up from $245,542,000 at the end of September 30, 2024, indicating an increase of 20.2% [17]. Deposits and Loans - Total deposits rose to $2,372,678 thousand as of September 30, 2025, compared to $2,345,944 thousand at December 31, 2024, marking an increase of 1.14% [11]. - As of September 30, 2025, the total loans amounted to $2,150.5 million, an increase from $2,125.1 million at December 31, 2024, reflecting a growth of approximately 1.2% [66]. - The net increase in customer deposits for the nine months ended September 30, 2025, was $26,741,000, down from $31,750,000 in 2024, representing a decrease of 15.9% [21]. - The company experienced a net decrease in loans of $24,040,000 during the nine months ended September 30, 2025, contrasting with an increase of $53,356,000 in the same period of 2024 [19]. Credit Losses and Provisions - The provision for credit losses was $139 thousand for the three months ended September 30, 2025, compared to a reversal of $945 thousand in the same period of 2024 [13]. - The allowance for credit losses (ACL) at the end of the period was $26.5 million, compared to $28.1 million at the end of 2024, reflecting a decrease in provisions for credit losses [108]. - The company reported a provision for credit losses of $(0.1) million for the three months ended September 30, 2025, indicating a negative provision for loan losses [108]. - The negative provision for credit losses for the nine months ended September 30, 2025, included a recovery of $3.3 million from loans previously charged off due to a property insurance settlement related to Hurricane Ida [109]. Investment Securities - The total amortized cost of investment securities classified as available-for-sale (AFS) was $417,729,000 as of September 30, 2025, with a fair value of $370,251,000, indicating unrealized losses of $48,468,000 [45]. - The fair value of available-for-sale (AFS) debt securities was $370.3 million, down from an amortized cost of $417.7 million, indicating a decline in value of approximately 11.3% [59]. - The amortized cost of investment securities classified as held-to-maturity (HTM) was $47,834,000 as of September 30, 2025, with a fair value of $50,576,000, showing unrealized gains of $2,922,000 [48]. Shareholder Activities - The company declared cash dividends of $0.11 per common share for the three months ended September 30, 2025, compared to $0.105 in the same period of 2024 [13]. - Cash dividends paid on common stock for the nine months ended September 30, 2025, totaled $3,146,000, compared to $2,940,000 in 2024, reflecting an increase of 7% [21]. - The company completed a private placement of 32,500 shares of Series A Preferred Stock at a price of $1,000 per share, raising gross proceeds of $32.5 million [117]. Risk Management - The company manages risks associated with construction and development loans by limiting loan-to-value ratios and employing specific underwriting policies [77]. - The company continues to evaluate borrowers' repayment abilities through credit scores and debt-to-income ratios, ensuring prudent lending practices [84]. - The company has seen a consistent increase in pass loans across various categories, demonstrating effective risk management strategies [92]. Market Conditions and Future Outlook - The Company expects to adopt ASU 2023-09 regarding income tax disclosures, effective January 1, 2025, with no material impact anticipated on its consolidated financial statements [37]. - There have been no material changes in the Company's market risk since December 31, 2024, as detailed in the MD&A section of the Annual Report [373].

Financial Performance - For the three months ended September 30, 2025, the company recorded a GAAP net loss per basic common share of $(0.01) and a Distributable Loss of $(0.40) per basic common share[156]. - The company recognized a GAAP net loss attributable to common stockholders of $(0.6) million for the quarter[158]. - For the three months ended September 30, 2025, the GAAP net loss attributable to common stockholders was $(565,000), compared to a loss of $(34,624,000) in the same period of 2024[165]. - Distributable Earnings (Loss) for the nine months ended September 30, 2025, was $(91,916,000), compared to $(45,752,000) for the same period in 2024[165]. - The company’s GAAP net loss attributable to common stockholders was $(0.6) million for Q3 2025, an improvement from $(17.0) million in Q2 2025[244]. Book Value and Capitalization - The book value per share of common stock as of September 30, 2025, was $7.94, which includes $(2.82) per share of total CECL reserves[156]. - The book value per share of common stock as of September 30, 2025, was $7.94, down from $8.47 as of December 31, 2024[166]. - The company's tangible net worth was reported at $0.7 billion, exceeding the required minimum of $0.6 billion[214]. - As of September 30, 2025, the company's capitalization included $1.2 billion of loan-level financing[250]. Loan Portfolio and Credit Losses - The total allowance for credit losses was $133.6 million, approximately 7.4% of total loan commitments of $1.8 billion as of September 30, 2025[158]. - The company ended the quarter with a portfolio of 44 loan investments with an aggregate unpaid principal balance of $1.7 billion and total commitments of $1.8 billion[158]. - The weighted average risk rating of the loan portfolio improved to 2.8 as of September 30, 2025, from 3.1 at December 31, 2024[169]. - The company recorded a benefit from credit losses of $1.6 million in Q3 2025, compared to a provision for credit losses of $(11.0) million in Q2 2025[242]. - The provision for credit losses for the nine months ended September 30, 2025, was $(13.1) million, significantly lower than $(164.2) million in the same period of 2024[248]. Interest Income and Expenses - For the three months ended September 30, 2025, the total interest income was $33.72 million, with a net interest income of $10.296 million[221]. - The average net asset yield for loans held-for-investment was 7.5% for the three months ended September 30, 2025[221]. - Total interest income for the nine months ended September 30, 2025, decreased to $102.7 million, down by $44.2 million from $146.8 million in the same period of 2024[246]. - Total interest expense for the nine months ended September 30, 2025, decreased to $76.3 million, down by $42.2 million from $118.5 million in the same period of 2024[247]. Operating Expenses - Total operating expenses for Q3 2025 were $12.5 million, down from $14.5 million in Q2 2025[243]. - Total operating expenses for the nine months ended September 30, 2025, increased to $41,250,000 from $37,571,000 in 2024, representing an increase of approximately 4.5%[249]. - Compensation and benefits expenses decreased to $4.1 million in Q3 2025 from $5.7 million in Q2 2025[243]. - Compensation and benefits expenses decreased to $15,556,000 in 2025 from $16,083,000 in 2024, a reduction of about 3.3%[249]. Liquidity and Financing - The company carried unrestricted cash of $62.7 million as of September 30, 2025[155]. - The company has $75.6 million in unfunded loan commitments as part of its liquidity needs[258]. - As of September 30, 2025, the company had immediate liquidity sources totaling $62,690,000[254]. - The company is actively exploring additional funding facilities to diversify its financing sources amid market volatility and elevated interest rates[226]. Market Conditions and Risks - The Federal Reserve's interest rate hikes in 2022 and 2023 have influenced the company's performance, with rates remaining elevated despite reductions in late 2024 and 2025[263]. - The company’s loan originations are affected by market demand, with significant disruptions noted due to inflation concerns and geopolitical uncertainty[225]. - The company is subject to counterparty risk and is focused on diversifying lending partners to mitigate this risk[259]. Dividend Practices - The company intends to distribute substantially all taxable income to stockholders to comply with REIT provisions, with distributions dependent on actual results and liquidity[261]. - The board of directors will evaluate dividend practices based on market conditions and distribution requirements to maintain REIT status[258].

Financial Performance - Total revenue from continuing operations for Q2 fiscal 2026 increased 10% to $1.5 billion compared to $1.3 billion in Q2 fiscal 2025[2] - Net income from continuing operations for Q2 was $191.9 million or $1.94 per diluted share, up from $150.2 million or $1.51 per diluted share in the same period last year[3] - Adjusted net income for Q2 fiscal 2026 was $244.5 million or $2.47 per diluted share, compared to $212.2 million or $2.14 per diluted share in Q2 fiscal 2025[3] - Free cash flow for the first half of fiscal 2026 was $527.7 million, up from $344.5 million in the prior year period[8] - Free cash flow for the six months ended September 30, 2025, was $527.7 million, compared to $344.5 million in 2024, indicating a 53.2% increase[27] - The company reported a diluted EPS of $4.81 for the first six months of FY 2026, compared to $4.17 in FY 2025, representing a 15.4% increase[33] Revenue Growth - Healthcare revenue grew 9% to $1,033.8 million, with service revenue up 13%, consumable revenue up 10%, and capital equipment revenue up 4%[4] - Applied Sterilization Technologies (AST) revenue increased 10% to $281.5 million, with service revenue growing 13% and capital equipment revenue declining 76%[5] - Life Sciences revenue increased 13% to $145.0 million, driven by 39% growth in capital equipment revenue[6] - Fiscal 2026 revenue from continuing operations is expected to increase by 8-9%, with constant currency organic revenue growth anticipated at 7-8%[9] - Total revenue for the six months ended September 30 reached $2,851.4 million, with a 9.3% organic growth year-over-year[31] - Total revenues for the second quarter of FY 2026 reached $1,460.3 million, a 9.8% increase from $1,328.9 million in FY 2025[35] - The total backlog for continuing operations increased to $541.3 million in FY 2026 from $480.9 million in FY 2025[35] Cash Flow and Expenditures - Capital expenditures are anticipated to be approximately $375 million, unchanged from prior expectations[10] - Cash flows from operating activities for FY 2026 are projected to be $1,225.0 million[34] Segment Performance - The Healthcare segment generated revenues of $1,033.8 million for the three months ended September 30, 2025, up from $944.2 million in 2024, reflecting a 9.5% increase[25] - Healthcare segment revenue for the three months ended September 30 was $1,033.8 million, representing a 9.5% organic growth compared to the previous year[31] - Life Sciences segment revenue increased to $145.0 million for the three months ended September 30, showing a 13.3% organic growth[31] - The Life Sciences segment showed a revenue increase of 9.3% for the six months ended September 30, reflecting strong market demand[31] Adjusted Earnings and Projections - Adjusted earnings per diluted share for fiscal 2026 are now expected to be in the range of $10.15 to $10.30, up from prior expectations of $9.90 to $10.15[9] - Adjusted diluted EPS for the three months ended September 30 was $2.47, up from $2.14 in the same period last year[32] - The adjusted income tax rate for continuing operations was 24.5% in FY 2026, up from 22.7% in FY 2025[35] Asset and Equity Growth - Total current assets as of September 30, 2025, were $2,106.3 million, an increase from $2,000.8 million as of March 31, 2025[23] - Total assets increased to $10,410.7 million as of September 30, 2025, compared to $10,146.8 million as of March 31, 2025[23] - Total equity as of September 30, 2025, was $7,022.5 million, an increase from $6,615.8 million as of March 31, 2025[23] Operating Income - Operating income for the three months ended September 30, 2025, was $265.8 million, a 20.9% increase from $219.7 million in the same period of 2024[25] - Gross profit for the six months ended September 30, 2025, rose to $1,273.9 million, compared to $1,151.2 million in 2024, reflecting a 10.6% increase[22] - The company experienced a net income attributable to shareholders of $191.9 million for the three months ended September 30, compared to $150.0 million in the previous year[32] Foreign Currency Impact - The company noted a foreign currency impact of $12.7 million on total revenue for the three months ended September 30[31]

Revenue Performance - For the three months ended September 30, 2025, revenue totaled $71.9 million, an increase of $13.9 million (or 24.0%) from the same period in 2024[144]. - For the nine months ended September 30, 2025, total revenue was $194.1 million, an increase of $30.5 million (or 18.7%) compared to the same period in 2024[162]. - Revenue from equipment and supply sales increased by $10.8 million (or 49.0%), driven by the success of the sleep resupply program and maternal health offerings[162]. - Ventilator rental revenue increased by $3.1 million (or 9.8%) due to higher patient volumes and sustained demand for ventilation services[144]. Profitability Metrics - Gross profit for the same period was $41.3 million, with a gross profit margin of 57.5%, down from 59.3% in 2024[147]. - Gross profit margin decreased to 57.4% for the nine months ended September 30, 2025, down from 59.3% in the same period in 2024[165]. - Net income attributable to Viemed Healthcare, Inc. for the quarter was $3.5 million, a decrease of $0.4 million (or 9.4%) compared to the prior year[143]. - Net income for the nine months ended September 30, 2025, was $9.6 million, an increase of $2.6 million (or 36.9%) from the same period in 2024[178]. Expenses and Cost Management - Selling, general and administrative expenses totaled $31.9 million, an increase of $5.2 million (or 19.7%) from the comparable period in 2024[149]. - Selling, general and administrative expenses totaled $89.1 million, an increase of $11.2 million (or 14.3%) from the comparable period in 2024, but as a percentage of revenue improved to 45.9%[167]. - Research and development expenses remained consistent at $0.8 million for both the three months ended September 30, 2025, and 2024[151]. - Research and development expenses totaled $2.4 million, reflecting a $0.2 million increase from the prior year, with expectations for consistent costs in 2025[169]. - Stock-based compensation increased by 43.4% to $6.8 million, reflecting investments in employee retention and long-term incentive programs[170]. Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 30, 2025, was $33.5 million, up from $24.1 million in the same period of 2024, representing an increase of 39.5%[184][185]. - Net cash used in investing activities was $42.6 million for the nine months ended September 30, 2025, primarily due to the acquisition of Lehan for $26.3 million[187]. - Capital expenditures for the nine months ended September 30, 2025, totaled $16.2 million, a decrease of $2.3 million or 12.3% year over year[187]. - Net cash provided by financing activities was $2.7 million for the nine months ended September 30, 2025, compared to a net cash used of $4.1 million in the same period of 2024[189][190]. - Outstanding borrowings under the 2022 Term Loan Facility and 2022 Revolving Credit Facility were $13.1 million and $8.0 million, respectively, as of September 30, 2025[192][207]. Market and Growth Outlook - The home medical equipment market is projected to grow at a Compound Annual Growth Rate (CAGR) of approximately 6% for respiratory devices and 8% for Obstructive Sleep Apnea (OSA) devices[127]. - U.S. home healthcare spending is expected to reach $250 billion by 2031, with a CAGR of approximately 7%[129]. - The company expects continued growth in its ventilator patient base and further revenue growth from the expansion of existing home medical equipment offerings[146]. - The company expects continued growth in ventilator rentals and expansion of home medical equipment offerings to drive future revenue growth[163]. Regulatory and Economic Factors - The company is actively participating in the national coverage analysis initiated by CMS for noninvasive positive pressure ventilation, which may influence patient access and reimbursement patterns[132]. - The One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025, introduces changes that may affect Medicaid and Medicare spending, with most provisions scheduled to take effect in 2027 and 2028[134]. - The company is facing ongoing cost pressures from rising material, labor, and transportation costs, which could impact financial results[135]. - Future volatility in general price inflation may further affect material availability and operational overhead, prompting the company to manage these pressures through various strategies[137]. Taxation - The provision for income taxes for the quarter was $1.5 million, compared to $1.6 million in 2024, with an estimated effective tax rate of 31.6% for 2025[158]. - The provision for income taxes was $4.2 million for the nine months ended September 30, 2025, compared to $2.9 million in 2024, with an estimated effective tax rate of 31.6%[177]. Workforce and Employee Contributions - The company anticipates expanding its workforce of licensed Respiratory Therapists (RTs) to support growth, with 414 RTs employed as of September 30, 2025, making up approximately 30% of the total employee count[123]. - Matching employer contributions to the 401(k) retirement plan totaled $1.4 million for the nine months ended September 30, 2025, compared to $1.2 million for the same period in 2024[198]. - The Company anticipates that operating cash flows will satisfy material cash requirements for the 12 months after September 30, 2025[196]. - The Company was in compliance with all covenants under the 2022 Senior Credit Facilities as of September 30, 2025[194].

Financial Performance - Net income for Q3 2025 decreased by 51.4% to $662,000 compared to $1,361,000 in Q3 2024, primarily due to $1.3 million in expenses related to the Altman Logistics acquisition[2] - Total revenues for Q3 2025 increased by 1.3% to $10.775 million from $10.633 million in Q3 2024[6] - Net income for the first nine months of 2025 was $2,950,000, down $1,756,000 or 37.3% from $4,706,000 in the same period last year[20] - The company reported a net income of $2,823,000 for the nine months ending September 30, 2025, compared to $4,773,000 for the same period in 2024, a decrease of 40.8%[36] Revenue and Income Segments - Pro rata NOI for Q3 2025 was $9.5 million, down 16% from $11.3 million in Q3 2024, largely due to a non-recurring $1.9 million minimum royalty payment in the prior year[2] - The Industrial and Commercial segment's NOI decreased by 25% due to tenant eviction and lease expirations[2] - Mining Royalty Lands segment NOI decreased by 26%, but adjusted pro rata NOI increased by 16% when excluding the prior year's $1.9 million payment[2] - Lease revenue in the Industrial and Commercial Segment decreased by $226,000 or 15.5% to $1,229,000 compared to the same period last year[13] - Net operating income in the Industrial and Commercial Segment fell by $305,000 or 25.2% to $904,000 due to lower occupancy rates[13] - Mining royalty and rent revenue increased by $490,000 or 15.3% to $3,689,000, with royalty tons up 6.5% and royalty revenue per ton up 5%[15] - Net operating income in the Mining Royalty Lands Segment decreased by $1,347,000 or 26.4% to $3,756,000, primarily due to a decrease in unrealized revenues[15] - Lease revenue in the Multifamily Segment increased by $1,016,000 or 4.2% to $25,238,000 compared to the same period last year[22] - The combined pro rata net operating income for the Multifamily Segment was $13,937,000, up $46,000 or 0.3% compared to the same period last year[22] Operating Expenses - Operating expenses rose by 77.6% to $3.304 million in Q3 2025, compared to $1.860 million in Q3 2024[6] - Operating profit before G&A in the Mining Royalty Lands Segment increased by $438,000 or 14.9% to $3,384,000 compared to the same period last year[15] - The Development Segment reported an operating profit before G&A of $(1,189,000), a decrease of $1,214,000 compared to the previous year[16] - Total revenues for consolidated joint ventures were $16,547,000, a slight increase of $45,000 compared to the previous year, while operating profit before G&A decreased by $606,000, or 14%[25] - Lease revenue in the Industrial and Commercial Segment decreased by $403,000, or 9%, totaling $3,950,000, with operating profit before G&A down by $1,057,000, or 43%[28] - The Development Segment reported lease revenue of $902,000, a slight decrease from $905,000, with operating profit before G&A down by $1,904,000[31] Investments and Assets - The company acquired Altman Logistics Property, LLC, which is expected to enhance cash flows and expand development capabilities in key markets[5] - The company anticipates significant growth from its development pipeline over the next five years, focusing on projects in Maryland, Florida, and South Carolina[4] - Total assets increased to $731,260,000 as of September 30, 2025, compared to $728,485,000 on December 31, 2024, reflecting a growth of 0.24%[33] - Net investments in properties rose to $588,512,000, up from $573,060,000, marking an increase of 2.5%[33] - Total liabilities increased to $269,064,000, compared to $259,372,000, representing a rise of 3.0%[33] Cash Flow and Financial Measures - Cash and cash equivalents decreased to $134,853,000 from $148,620,000, a decline of 9.2%[33] - Net investment income decreased by $1,517,000 due to reduced earnings on cash equivalents and lending ventures, primarily from fewer residential lot sales[23] - Adjusted net income attributable to the Company for the nine months ended September 30, 2025, was $4,475,000, consistent with $4,706,000 for the same period in 2024[37] Future Outlook and Risks - The company plans to host a conference call on November 6, 2025, to discuss financial results and future outlook[38] - The company emphasizes the importance of non-GAAP financial measures to provide a clearer picture of its financial condition and operational results[35] - Risks include potential challenges in finding investment opportunities and fluctuations in demand for real estate in key markets[40]

Financial Performance - Net earnings available to common shareholders for Q2 fiscal 2026 were $105.6 million, down from $186.8 million in the same period last year, with earnings per share for Non-Voting Shares at $0.54 compared to $0.96[1][2] - The company reported earnings from operations of $475,008, down 21.8% from $608,198 in the same period of the previous year[15] - Earnings available to common stockholders for the quarter were $105,550,000, down from $186,798,000, reflecting a decrease of 43.4%[21] - Earnings available to common stockholders for the six months were $247,881,000, down from $382,215,000, a decrease of 35.1%[22] - Basic and diluted earnings per share of Common Stock decreased to $0.49 from $0.91, a decline of 46.2%[21] - Basic and diluted earnings per share of Common Stock for the six months fell to $1.17 from $1.86, a decline of 37.1%[22] Revenue and Growth - Consolidated revenue for Q2 fiscal 2026 was $1,719.9 million, up from $1,658.1 million in Q2 fiscal 2025[11] - Consolidated revenue for the first six months of fiscal 2026 reached $3,350,392, an increase of 4.5% compared to $3,206,598 in the same period of fiscal 2025[15] - Self-storage revenues increased by $21.8 million, or 9.7%, compared to Q2 fiscal 2025, with same store occupancy decreasing by 3.5% to 90.5%[3] - Self-moving equipment rental revenues rose by $23.1 million, or 2.1%, with revenue per transaction increasing in both In-Town and One-Way markets[3] - Self-storage revenues rose to $480,536, reflecting a growth of 9.1% compared to $440,256 in the prior year[14] - Total revenues for the quarter ended September 30, 2025, increased to $1,719,922,000, up from $1,658,108,000 in 2024, representing a growth of 3.7%[21] - Self-moving equipment rental revenues rose to $1,110,477,000, compared to $1,087,348,000 in the same quarter last year, marking an increase of 2.1%[21] - Self-storage revenues increased by 9.7% to $246,299,000 from $224,519,000 year-over-year[21] Expenses and Costs - Total costs and expenses for the quarter were $1,502,328,000, up from $1,356,152,000, indicating an increase of 10.8%[21] - Total depreciation expense for the first half of fiscal 2026 was $584,185, a significant increase of 24.5% from $469,138 in the same period last year[16] - Depreciation expenses for the quarter increased significantly to $340,608,000 from $227,270,000, reflecting a rise of 49.8%[21] - Fleet maintenance and repair costs increased by $10.4 million compared to Q2 fiscal 2025[8] - Interest expense for the quarter ended September 30, 2025, is $90,333, an increase of 25.9% from $71,750 for the same quarter in 2024[33] Assets and Liabilities - Total debt as of September 30, 2025, was $7,732.5 million, with cash and cash equivalents at $910.9 million[12] - Cash and cash equivalents increased to $1,082,820, up from $988,828 as of March 31, 2025[20] - Total assets grew to $21,428,419, compared to $20,479,170 at the end of the previous fiscal year[20] - The company’s property, plant, and equipment, net of accumulated depreciation, increased to $16,030,940 from $15,112,600[20] - Total property, plant, and equipment, net as of September 30, 2025, is $16,030,940, an increase of 5.1% from $15,251,298 as of March 31, 2025[30] - Total property, plant, and equipment at cost as of September 30, 2025, is $22,407,924, an increase of 4.8% from $21,372,286 as of March 31, 2025[30] Operational Highlights - The company added 23 new storage locations, contributing 1.6 million net rentable square feet during the second quarter[3] - The average monthly occupancy rate for self-storage units decreased to 77.2% from 80.5% year-over-year[16] - The average revenue per occupied square foot for self-storage was $17.12, with a total of 71,166,758 square feet managed[17] - Net (gains) losses on disposal of real estate for the quarter ended September 30, 2025, is $4,531, compared to $2,991 for the same quarter in 2024, showing a 51.5% increase[33] - Total accumulated depreciation as of September 30, 2025, is $6,376,984, up from $6,120,988 as of March 31, 2025, indicating a 4.2% increase[30] Dividends - Cash dividend of $0.05 per share was declared on August 21, 2025, and paid on September 26, 2025[8]