Revenue and Customer Growth - Subscription revenue accounted for 98% of total revenue for the three and nine months ended September 30, 2025 and 2024 [116]. - As of September 30, 2025, the company had 278,880 customers across more than 135 countries [115]. - Subscription revenue for the three months ended September 30, 2025, increased by 21% to $791,678,000 compared to $654,738,000 in 2024, and for the nine months, it rose by 19% to $2,234,937,000 from $1,882,241,000 [143]. - The total revenue for the three months ended September 30, 2025, was $809,518,000, a 21% increase from $669,721,000 in 2024, and for the nine months, it reached $2,284,520,000, up 19% from $1,924,365,000 [143]. - The number of customers grew from 238,128 as of September 30, 2024, to 278,880 as of September 30, 2025, contributing to the increase in subscription revenue [144]. - Average Subscription Revenue per Customer for the three months ended September 30, 2025, increased to $11,578 from $11,235 in 2024, driven by higher demand for Professional and Enterprise products [144]. Financial Performance - The company expects to break-even from a profitability perspective in the next 12 months [120]. - The company reported a net income of $16,536,000 for the three months ended September 30, 2025, compared to $8,146,000 in 2024, while for the nine months, it recorded a net loss of $8,515,000 compared to a loss of $355,000 in 2024 [142]. - The company reported a net loss of $8.5 million for the nine months ended September 30, 2025, compared to a net loss of $0.4 million in the same period of 2024 [185][186]. - The effective tax rate increased to -209% for the nine months ended September 30, 2025, compared to -102% in 2024, reflecting a significant rise in income tax expense [176]. Cost and Expenses - Total cost of revenue for the three months ended September 30, 2025, increased by 34% to $133,518,000 from $99,324,000 in 2024, and for the nine months, it rose by 28% to $370,786,000 from $289,928,000 [148]. - Subscription cost of revenue for the three months ended September 30, 2025, was $117,025,000, a 38% increase from $85,066,000 in 2024, and for the nine months, it was $323,925,000, up 31% from $247,408,000 [149]. - Professional services and other cost of revenue increased by $2,235 (16%) to $16,493 for the three months ended September 30, 2025, and by $4,341 (10%) to $46,861 for the nine months ended September 30, 2025 compared to the same periods in 2024 [153]. - Research and development expenses rose by $36,529 (19%) to $227,714 for the three months ended September 30, 2025, and by $120,150 (21%) to $685,151 for the nine months ended September 30, 2025 compared to the same periods in 2024 [156]. - Sales and marketing expenses increased by $45,340 (15%) to $355,268 for the three months ended September 30, 2025, and by $117,834 (13%) to $1,021,844 for the nine months ended September 30, 2025 compared to the same periods in 2024 [159]. - General and administrative expenses grew by $2,819 (4%) to $80,747 for the three months ended September 30, 2025, and by $25,000 (11%) to $244,380 for the nine months ended September 30, 2025 compared to the same periods in 2024 [162]. Investments and Future Plans - The company plans to continue investing in research and development to introduce new products and applications, with a focus on enhancing customer experience [120]. - The company has invested in AI-enabled tools for guided selling and content generation to improve conversion rates and drive efficiencies [120]. - The company plans to continue expanding its sales force and marketing efforts to increase customer base and revenue [120]. - The restructuring plan included a workforce reduction of approximately 7% to reduce operating costs and enable investment in long-term growth [138]. - The company continued to invest in AI functionality and new product development, contributing to increased subscription and hosting costs due to customer base growth [151]. Cash Flow and Financing - Cash and cash equivalents increased to $614.4 million for the nine months ended September 30, 2025, compared to $410.1 million in the same period of 2024, representing a 50% increase [182]. - Net cash provided by operating activities was $513.3 million for the nine months ended September 30, 2025, up from $404.5 million in 2024, indicating a 27% increase [182]. - Cash used in financing activities totaled $900.5 million for the nine months ended September 30, 2025, primarily due to $485.3 million for stock repurchases and $459.8 million for repayments of the 2025 Notes [192]. - The company repurchased 1.0 million shares at an average price of $501.67 per share, totaling $500 million under the 2025 Share Repurchase Program [195]. - Net cash provided by investing activities included $1.9 billion from the maturity of investments, offset by $1.2 billion in purchases of investments for the nine months ended September 30, 2025 [189]. Other Financial Metrics - Net Revenue Retention is a key metric indicating the stability of the revenue base, calculated by dividing Retained Subscription Revenue by Retention Base Revenue [124]. - Interest income decreased by $7,528 (35%) to $14,252 for the three months ended September 30, 2025, and by $7,771 (13%) to $53,106 for the nine months ended September 30, 2025 compared to the same periods in 2024 [168]. - Other (expense) income showed a significant decline, with a loss of $2,346 for the three months ended September 30, 2025 compared to a loss of $565 in 2024, marking a change of $1,781 (315%) [172]. - The total obligation for operating leases was $328.2 million as of September 30, 2025, with $58.1 million expected in the next twelve months [194]. - The company has $2.7 million in letters of credit outstanding as of September 30, 2025, expected to remain in effect until 2029 [197]. - The company does not currently hedge its interest rate exposure, and a hypothetical increase of 100 basis points in interest rates would not have a material impact on the value of cash and cash equivalents or investments [203].

Revenue and Sales Performance - Revenue for Q3 2025 was $399 million, flat sequentially but down 5% year-over-year[6] - Net sales for the three months ended September 30, 2025, were $398.6 million, a decrease of 4.3% compared to $417.6 million in the same period of 2024[28] - For the nine months ended September 30, 2025, net sales totaled $1,204.1 million, a decrease of 5% from $1,267.8 million in the same period of 2024[29] - Net sales guidance for FY2025 is projected between $1.600 billion and $1.620 billion[6] Profitability and Margins - EBITDA for Q3 2025 was $34 million, with an EBITDA margin of 8.6%[6] - Gross profit for the three months ended September 30, 2025, was $66.6 million, down from $72.3 million in the same period of 2024, reflecting a gross margin of 16.7%[28] - Operating income for the three months ended September 30, 2025, was $17.3 million, compared to $23.6 million in the same period of 2024, indicating a decline of 26.5%[28] - The company reported an operating income of $56.3 million for the nine months ended September 30, 2025, down from $72.2 million in the same period of 2024, reflecting a decline of 22.0%[32] Cash Flow and Financial Health - Free cash flow improved by $28 million sequentially to $7 million in Q3 2025[6] - Free cash flow for the three months ended September 30, 2025, was $6.6 million, a significant improvement from a negative $0.1 million in the same period of 2024[33] - The company reported a net cash provided by operating activities from continuing operations of $17.3 million for the three months ended September 30, 2025, compared to $9.0 million in 2024, representing an increase of approximately 92.2%[25] - The company anticipates meaningful cash generation to reduce debt for the remainder of 2025[4] Assets and Liabilities - Total current assets increased to $887.0 million as of September 30, 2025, compared to $836.0 million at the end of 2024, marking an increase of approximately 6.1%[23] - Total assets rose to $1,436.6 million as of September 30, 2025, up from $1,365.1 million in 2024, indicating a growth of about 5.2%[23] - Total liabilities increased to $1,057.8 million as of September 30, 2025, compared to $1,028.0 million in 2024, reflecting an increase of approximately 2.9%[23] - The company’s long-term debt stood at $659.1 million as of September 30, 2025, compared to $618.3 million in 2024, reflecting an increase of about 6.6%[23] Equity and Shareholder Information - Income from continuing operations attributable to common shareholders for the nine months ended September 30, 2025, was $23.3 million, down from $36.6 million in 2024, representing a decline of about 36.4%[21] - The company’s total equity increased to $378.8 million as of September 30, 2025, from $337.1 million in 2024, indicating a growth of approximately 12.4%[23] - Adjusted EPS guidance for FY2025 is between $2.70 and $2.90 per diluted share[6] Segment Performance - Supply Technologies segment revenue was $186 million, with adjusted margins improving to 9.9%[6] - Assembly Components segment revenue was $97 million, with over $50 million of new business expected to launch through 2026[6] - Engineered Products segment revenue was $116 million, with a backlog of $185 million[6] - Adjusted segment operating income for Supply Technologies was $18.4 million for the three months ended September 30, 2025, compared to $20.5 million in the same period of 2024[32] Expenses and Charges - Selling, general and administrative expenses for the three months ended September 30, 2025, were $46.5 million, compared to $47.8 million in the same period of 2024, showing a slight decrease of 2.7%[28] - The company incurred interest expense of $12.5 million for the three months ended September 30, 2025, slightly up from $12.1 million in 2024[21] - Interest expense for the nine months ended September 30, 2025, was $34.7 million, an increase from $36.0 million in the same period of 2024[29] - The company incurred restructuring and other special charges of $2.8 million for the three months ended September 30, 2025, compared to $0.9 million in the same period of 2024[28] Backlog and Demand - Backlog increased by 28% year-to-date to $185 million, driven by demand in defense, infrastructure, and electrification[6]

Financial Performance - For Q3 2025, net sales were $178.7 million, a decrease of 43.1% compared to $314.3 million in Q3 2024[2] - Gross profit for Q3 2025 was $25.3 million, or 14.2% of net sales, compared to $42.0 million, or 13.4% of net sales in Q3 2024[3] - Selling, general and administrative expenses were $21.2 million, or 11.9% of net sales, compared to $22.3 million, or 7.1% of net sales in the prior year[4] - Net income in Q3 2025 was $3.1 million, or $0.27 per diluted share, down 80.0% from $15.4 million, or $1.33 per diluted share in Q3 2024[5] Guidance and Shareholder Returns - The company reaffirmed its revenue guidance for the 2025 fiscal year at $750 to $800 million[8] - The company executed approximately $1.2 million in share repurchases, returning approximately $3.5 million to shareholders during the quarter[7] Debt and Capital Management - The company reduced its debt balance by $10 million during the quarter, with an additional $10 million reduction in October[7] - The company is focused on disciplined capital allocation as cash conversion improves[7] Asset and Liability Changes - Total current assets decreased from $529,766 million as of December 31, 2024, to $469,466 million as of September 30, 2025, a decline of approximately 11.4%[16] - Accounts receivable decreased from $313,413 million to $232,617 million, representing a reduction of about 25.7%[16] - Total liabilities decreased from $265,985 million to $183,688 million, a decrease of approximately 30.9%[16] - Current liabilities decreased from $197,873 million to $135,776 million, reflecting a decline of about 31.4%[16] - Long-term obligations decreased from $65,000 million to $45,000 million, a reduction of approximately 30.8%[16] Shareholders' Equity and Retained Earnings - Total shareholders' equity increased from $401,030 million to $420,655 million, an increase of about 4.3%[16] - Retained earnings increased from $254,938 million to $267,675 million, reflecting a growth of approximately 5%[16] Cash and Inventory Management - Cash and temporary investments increased from $24,337 million to $38,401 million, an increase of about 57.7%[16] - Inventories decreased slightly from $186,169 million to $180,715 million, a decrease of approximately 2.4%[16] Other Comprehensive Loss - Accumulated other comprehensive loss improved from $(7,726) million to $(1,277) million, indicating a positive change of approximately 83.5%[16] Market Focus - The CEO indicated strong interest in the global military market and a return to normalized field inventory levels[7]

Revenue and Profitability - Total revenue for Q3 2025 was $860.5 million, a slight decrease of 0.5% compared to $864.4 million in Q3 2024[11] - Product revenue decreased to $691.1 million in Q3 2025 from $709.3 million in Q3 2024, representing a decline of 2.6%[11] - Service and other revenue increased to $169.4 million in Q3 2025, up 9.0% from $155.1 million in Q3 2024[11] - Gross profit for Q3 2025 was $379.4 million, down 9.3% from $418.8 million in Q3 2024[11] - Operating loss for Q3 2025 was $(51.8) million, compared to an operating income of $68.1 million in Q3 2024[11] - Consolidated net loss for Q3 2025 was $(58.5) million, compared to a net income of $40.3 million in Q3 2024[13] Assets and Liabilities - Total assets increased to $6,434.9 million as of September 30, 2025, up from $5,806.7 million as of December 31, 2024[10] - Cash and cash equivalents rose to $293.1 million as of September 30, 2025, compared to $183.4 million as of December 31, 2024[10] - Long-term debt decreased to $1,984.2 million as of September 30, 2025, down from $2,061.8 million as of December 31, 2024[10] - Total shareholders' equity attributable to Bruker Corporation increased to $2,431.9 million as of September 30, 2025, compared to $1,781.2 million as of December 31, 2024[10] Cash Flow and Financing - Cash flows from operating activities showed a net cash used of $95.7 million in 2025, contrasting with a net cash provided of $61.3 million in 2024[19] - The company reported cash paid for acquisitions of $69.7 million in 2025, significantly lower than $1,576.7 million in 2024[19] - Total cash, cash equivalents, and restricted cash at the end of the period was $297.3 million in 2025, up from $151.7 million in 2024[19] - The company generated $669.5 million from the issuance of Series A Mandatory Convertible Preferred Stock in 2025[19] - Cash paid for interest increased to $50.2 million in 2025 from $31.6 million in 2024[19] Acquisitions and Goodwill - The company completed various acquisitions during the nine months ended September 30, 2025, which complement existing product offerings[28] - The Recipe acquisition, completed on April 14, 2025, involved acquiring 69.64% of the company, enhancing the Company's capabilities in clinical diagnostic assays[31] - The company reported a significant impairment of goodwill and intangible assets amounting to $147.5 million in 2025, compared to $27.5 million in 2024[19] - The total consideration transferred for 2024 acquisitions was $1,635.8 million, with cash paid of $1,648.8 million[37] - The Company allocated $958.0 million to goodwill from the 2024 acquisitions, reflecting expected synergies and future economic benefits[32] Expenses and Restructuring - Total restructuring charges for the three months ended September 30, 2025, amounted to $34.5 million, significantly higher than $4.3 million for the same period in 2024[84] - The company expects to incur additional restructuring charges of $4.1 million through the remainder of 2025 related to its corporate-wide restructuring plan[85] - The company reported interest and other expenses of $(20.0) million for the three months ended September 30, 2025, compared to $(12.8) million in 2024, indicating an increase in expenses[71] Research and Development - Research and development expenses for the nine months ended September 30, 2025, totaled $292.3 million, compared to $270.3 million in 2024, marking an increase of 8.1%[72] - The company reported a total consolidated operating income of $(51.8) million for the three months ended September 30, 2025, compared to $68.1 million in 2024, reflecting a significant decline[71] Shareholder Activities - The company repurchased 200,731 shares, resulting in cash dividends paid to common shareholders totaling $10.1 million[15] - A quarterly cash dividend of $0.05 per share was declared on August 12, 2025, resulting in a payment of approximately $7.6 million on October 3, 2025[129] - The Company completed a public offering of 6,000,000 shares of common stock at a price of $67.29 per share, generating net proceeds of approximately $403.0 million[128] Tax and Legal Matters - The effective tax rate for the nine months ended September 30, 2025, was 18.4%, down from 33.6% in 2024, indicating a significant decrease of 15.2 percentage points[90] - The Company agreed to pay $68.0 million to 10x Genomics in a settlement related to patent litigation, with payments to be made in four equal quarterly installments starting in Q3 2025[120] Market and Segment Performance - The company operates through four reportable segments: BSI BioSpin, BSI CALID, BSI NANO, and Bruker Energy & Supercon Technologies[21] - BSI CALID segment focuses on life science mass spectrometry and molecular diagnostics, generating revenue from various sectors including pharmaceuticals and diagnostics[21] - Revenue from external customers for the nine months ended September 30, 2025, increased to $2,459.3 million, compared to $2,386.8 million in 2024, reflecting a growth of 3.0%[72]

Granite Point Mortgage Trust Inc. Reports Third Quarter 2025 Financial Results and Post Quarter-End Update NEW YORK, November 5, 2025 – Granite Point Mortgage Trust Inc. (NYSE: GPMT) ("GPMT," "Granite Point" or the "Company") today announced its financial results for the quarter ended September 30, 2025, and provided an update on its activities subsequent to quarter-end. An earnings supplemental containing third quarter 2025 financial results can be viewed at www.gpmtreit.com. Third Quarter 2025 Activity Po ...

Investment Activity - For the three months ended September 30, 2025, total purchases amounted to $1,142 million, while sales and repayments were $1,483 million, resulting in a net portfolio activity of $(341) million[336]. - Senior secured loans accounted for 65% of new investment purchases during the three months ended September 30, 2025, totaling $742 million[336]. - The company made $75 million in subordinated debt purchases, representing 7% of total purchases for the same period[336]. - Asset-based finance investments totaled $171 million, making up 15% of new investment activity for the three months ended September 30, 2025[336]. - For the nine months ended September 30, 2025, total purchases reached $4,540 million, with sales and repayments also at $4,540 million, resulting in no net portfolio activity[336]. Investment Strategy - The company focuses on debt investments in middle-market U.S. companies, defined as those with annual EBITDA between $50 million and $150 million[323]. - The investment portfolio primarily consists of senior secured loans and second lien secured loans of private middle-market U.S. companies[324]. - The company aims to generate current income and long-term capital appreciation through its investment strategy[323]. - The average life of the debt securities in which the company invests is generally three to four years[328]. Portfolio Valuation - As of September 30, 2025, the total investment portfolio's fair value was $13,415 million, a slight decrease from $13,490 million on December 31, 2024[337]. - The number of portfolio companies increased to 224 as of September 30, 2025, up from 214 at the end of 2024[339]. - The percentage of variable rate debt investments based on fair value decreased to 63.8% from 65.8%[339]. - The fair value of investments rated 1 (performing) was $8,870 million, representing 66% of the portfolio, while investments rated 4 (underperforming) were $260 million, or 2% of the portfolio[350]. Financial Performance - Total investment income for the three months ended September 30, 2025, was $373 million, a decrease from $441 million in the same period of 2024, with interest income contributing $231 million (61.9% of total income) in 2025[351]. - Net investment income for the three months ended September 30, 2025, was $159 million ($0.57 per share), down from $215 million ($0.77 per share) in 2024[359]. - The company recorded a net realized loss on investments of $53 million for the three months ended September 30, 2025, compared to a loss of $43 million in the same period of 2024[361]. - The net change in unrealized appreciation on investments for the three months ended September 30, 2025, was $100 million, compared to $22 million in 2024[363]. Debt and Financing - The total cost of Direct Originations increased to $13,645.9 million as of September 30, 2025, from $13,494.8 million at the end of 2024[341]. - The aggregate amount of senior securities outstanding as of September 30, 2025, was $7.4 billion, with an asset coverage ratio of 184%[369]. - The company had unfunded debt investments with aggregate commitments of $1,733.4 million as of September 30, 2025[368]. - As of September 30, 2025, the total outstanding financing arrangements amount to $7.369 billion, with $3.499 billion available for borrowing[371]. Dividends and Tax Status - The company declared total dividends of $2.10 per share for the nine months ended September 30, 2025, compared to $2.20 per share for the same period in 2024[382][383]. - A regular quarterly distribution of $0.70 per share was declared on October 8, 2025, consisting of a $0.64 base distribution and a $0.06 supplemental distribution[384]. - The company intends to maintain its RIC tax status by distributing at least 90% of its investment company taxable income each tax year[379]. Interest Rate and Currency Risk - The company utilizes interest rate swap strategies to hedge against changing interest rate risks[403]. - A rise in interest rates could lead to an increase in net investment income and incentive fees payable to the Adviser, particularly for variable rate investments[401]. - The company utilizes derivative instruments such as foreign currency forward contracts and cross currency swaps to manage foreign currency exchange rate fluctuations[411]. - The company benefits from a weaker U.S. dollar for its unhedged foreign currency investments, while a stronger U.S. dollar adversely affects these investments[411]. Foreign Currency Exposure - As of September 30, 2025, the total fair value of investments denominated in foreign currencies was $921.6 million, with a potential reduction of $92.1 million if there is a 10% adverse change in exchange rates[409]. - The fair value of investments in British Pound Sterling was $406.0 million, with a potential reduction of £40.6 million under adverse exchange rate conditions[409]. - The fair value of investments in Euros was $393.2 million, with a potential reduction of €39.3 million under adverse exchange rate conditions[409]. - The fair value of investments in Swedish Krona was $115.4 million, with a potential reduction of SEK 11.5 million under adverse exchange rate conditions[409].

Company Operations - As of September 30, 2025, the company operated 856 theatres and 9,636 screens across 11 countries[182][183]. - As of September 30, 2025, there were 512,943,561 shares of Common Stock outstanding, with approximately 99.6% held in "street name" for beneficial holders[193]. - The average number of screens operated decreased to 9,636 in Q3 2025 from 9,800 in Q3 2024, with 88 screens disposed of during the quarter[212]. - The company added 11 screens in Q3 2025, while 88 screens were disposed of, resulting in a net decrease in screen count[212]. - The number of screens operated increased to 9,636, reflecting the company's ongoing market expansion efforts[343]. Revenue Generation - The company generated significant revenue from box office admissions and food and beverage sales, with AMC Stubs members representing approximately 51% of U.S. market attendance during the nine months ended September 30, 2025[183][190]. - Total revenues for Q3 2025 were $1,300.2 million, a decrease of 3.6% compared to $1,348.8 million in Q3 2024[210]. - Total revenues for the nine months ended September 30, 2025, increased to $3,560.6 million, up 6.9% from $3,330.8 million in 2024[214]. - Admissions revenues rose to $1,951.2 million, a 6.1% increase from $1,839.1 million in the previous year[214]. - Food and beverage revenues increased to $1,234.8 million, reflecting a 4.8% growth compared to $1,178.7 million in 2024[214]. - Total revenues for the three months ended September 30, 2025, were $1,300.2 million, with $952.3 million from admissions and $451.8 million from food and beverage sales[334]. - Total revenues for the nine months ended September 30, 2025, reached $3,560.6 million, with admissions contributing $1,951.2 million and food and beverage sales contributing $1,234.8 million[340]. Financial Performance - The company reported a net loss of $298.2 million in Q3 2025, compared to a net loss of $20.7 million in Q3 2024[210]. - Operating income for Q3 2025 was $35.8 million, down 50.1% from $71.8 million in Q3 2024[210]. - Net loss was $505.0 million for the nine months ended September 30, 2025, compared to a net loss of $217.0 million for the same period in 2024[273]. - The company reported a working capital deficit of $(1,035.5) million as of September 30, 2025, compared to $(846.1) million at the end of 2024[313]. - Net cash used in operating activities for the nine months ended September 30, 2025, was $246.5 million, a decrease from $254.4 million in the same period of 2024[323]. - The company incurred interest expenses of $139.3 million, with $58.9 million from corporate borrowings and $60.7 million from the Muvico Group[338]. - The company reported a net loss of $505.0 million for the nine months ended September 30, 2025[350]. Market Challenges - The company faces risks related to the sufficiency of cash and cash equivalents to fund operations and satisfy obligations, particularly in light of potential changes in movie studio release schedules[175]. - The company reported significant competition in the exhibition market, including from streaming platforms and other forms of entertainment[177]. - The company anticipates continued challenges in the market, impacting future revenue growth and profitability[210]. - North American box office grosses were down approximately 22% for the nine months ended September 30, 2025, compared to the same period in 2019, indicating ongoing challenges in revenue recovery[320]. Cost Management - Operating costs and expenses for Q3 2025 were $1,264.4 million, a slight decrease of 1.0% from $1,277.0 million in Q3 2024[210]. - Operating costs and expenses totaled $3,578.1 million, with film exhibition costs at $949.3 million and food and beverage costs at $241.9 million[340]. - Operating expense as a percentage of revenues increased to 35.7% for the three months ended September 30, 2025, compared to 33.7% in 2024[222]. - Operating costs and expenses increased by $115.4 million, or 4.5%, during the nine months ended September 30, 2025, compared to the same period in 2024[277]. Membership and Loyalty Programs - As of September 30, 2025, the company had approximately 37.7 million member households enrolled in its loyalty programs, with 19 million members in international programs[190]. - The company signed a letter of intent with CJ 4DPLEX to open new 4DX and SCREENX locations in U.S. markets, with the first deployment expected by early 2026[187]. Financing Activities - The company completed a series of refinancing transactions during the three and nine months ended September 30, 2025, involving certain holders of Existing 7.5% Notes and Existing Exchangeable Notes[201]. - During the nine months ended September 30, 2025, the company raised $108.7 million in initial gross cash proceeds associated with the establishment of forward positions for 30.0 million shares of Common Stock[203]. - The "at-the-market" offering during the nine months ended September 30, 2025, resulted in the issuance of 17.1 million shares and gross proceeds of $63.0 million[203]. - The company expects capital expenditures for the year ending December 31, 2025, to be approximately $175 million to $225 million to maintain and enhance operations[325].

Financial Performance - For the three months ended September 30, 2025, the net loss was $1.4 million compared to a net income of $4.3 million for the same period in 2024[14]. - For the nine months ended September 30, 2025, the net loss increased to $71.6 million from a net income of $5.2 million in 2024[14]. - The company reported comprehensive loss of $2.0 million for the three months ended September 30, 2025, compared to a comprehensive income of $4.9 million in 2024[14]. - The company reported a net loss of $0.8 million for the three months ended September 30, 2025, compared to a net income of $3.8 million in 2024[47]. - The company reported a net loss from continuing operations of $1.4 million for the three months ended September 30, 2025, compared to a net income of $5.9 million in the same period of 2024[88]. Assets and Liabilities - Total assets decreased to $1,067.7 million as of September 30, 2025, down from $1,154.2 million as of December 31, 2024[16]. - Cash and cash equivalents decreased to $70.5 million as of September 30, 2025, compared to $107.7 million at the end of 2024[16]. - Total liabilities decreased to $289.7 million as of September 30, 2025, from $325.7 million as of December 31, 2024[16]. - The accumulated deficit increased to $778.6 million as of September 30, 2025, compared to $707.0 million at the end of 2024[16]. - Total accrued expenses decreased to $74.8 million as of September 30, 2025, from $91.3 million as of December 31, 2024, a reduction of 18.0%[58]. - The Term Loan Facility balance was $103.1 million as of September 30, 2025, down from $110.2 million as of December 31, 2024, a decrease of 6.4%[69]. Goodwill and Impairment - The company incurred a goodwill impairment of $77.0 million during the nine months ended September 30, 2025[19]. - The company recorded a goodwill impairment of $77.0 million in the second quarter of 2025 due to the fair value of its Pain Management and Recovery reporting unit falling below its carrying value[38]. - As of September 30, 2025, the total balance of goodwill was $394.4 million, with $341.6 million attributed to the SNS segment and $52.8 million to the PM&R segment[39]. - The company’s market capitalization decreased in the second quarter of 2025, prompting an interim goodwill impairment test[38]. Restructuring and Expenses - The company initiated a three-year restructuring initiative in January 2023, incurring net expenses of $27.4 million related to organizational design and business process efficiencies[41]. - In the first six months of 2025, the company incurred $10.3 million in costs related to its restructuring plan, compared to $2.3 million in the same period of 2024[42]. - The company expects to incur up to $10.0 million in incremental expenses due to the expansion of its restructuring plan, anticipating annualized savings between $15.0 million and $20.0 million[43]. - The company’s restructuring liability as of September 30, 2025, was $2.0 million, down from $3.8 million at the end of 2024[44]. Sales and Revenue - Pro forma net sales for the three months ended September 30, 2025, were $180.8 million, compared to $174.0 million in 2024, reflecting a 4.5% increase[47]. - For the nine months ended September 30, 2025, pro forma net sales were $531.7 million, up from $519.0 million in 2024, a 2.6% increase[47]. - Total consolidated net sales for the three months ended September 30, 2025, were $177.8 million, compared to $170.4 million in 2024, a 2.5% increase[49]. - Total consolidated net sales for the nine months ended September 30, 2025, reached $520.3 million, compared to $508.2 million in 2024, a 2.6% increase[50]. - Specialty Nutrition Systems segment reported net sales of $114.0 million for the three months ended September 30, 2025, compared to $98.2 million in 2024, a 16.5% increase[49]. - Specialty Nutrition Systems segment sales increased to $317.8 million for the nine months ended September 30, 2025, compared to $290.5 million in 2024[90]. Stock and Share Repurchase - The company has a share repurchase program approved for $25.0 million, which began on July 28, 2023[92]. - The Board of Directors approved a new one-year share repurchase program allowing up to $25.0 million in common stock repurchases[93]. - No common stock repurchases occurred in the nine months ended September 30, 2025[95]. - For the nine months ended September 30, 2024, a total of 1,085,333 shares were repurchased at an aggregate purchase price of $6.7 million, averaging $19.45 per share[96]. - Additionally, 211,566 shares were withheld for $3.0 million in taxes related to stock-based compensation transactions for the nine months ended September 30, 2025[96]. Other Financial Information - The company’s financial statements are prepared in accordance with GAAP, and the interim financial statements contain all necessary material adjustments[22]. - The company incurred $0.4 million in costs related to the Nexus acquisition for both the three and nine months ended September 30, 2025[46]. - Nexus acquisition contributed $0.9 million in net sales since the acquisition date[46]. - The estimated amortization expense for the remainder of 2025 is projected to be $4.5 million[57]. - The derivative asset for foreign exchange contracts was $1.2 million as of September 30, 2025[85]. - The effective portion of the gain or loss on derivative instruments was not material for the three and nine months ended September 30, 2025[86]. - There have been no material changes in the company's market risk position since the last disclosure[151].

Financial Performance - Third quarter 2025 gross royalty revenue from GSK was $63.4 million, a 4.8% increase from $60.5 million in the third quarter 2024[202]. - Third quarter 2025 net product sales totaled $47.3 million, representing a 70% increase compared to $27.8 million in the third quarter 2024[202]. - Third quarter 2025 net income was $89.9 million, or $1.30 basic per share, compared to a net income of $1.2 million, or $0.02 basic per share, for the third quarter 2024[202]. - Total net royalty revenue increased to $59.9 million for the three months ended September 30, 2025, a 5% increase from $57.1 million in the prior year[209]. - Total product sales, net, rose to $47.3 million for the three months ended September 30, 2025, reflecting a 70% increase from $27.8 million in the same period last year[210]. - Gross royalty revenues from GSK for the nine months ended September 30, 2025, totaled $192.0 million, with net product sales of $113.1 million and license revenue of $2.1 million[224]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $142.4 million, an increase of $12.97 million (10%) from $129.5 million in 2024[226]. - Net cash provided by investing activities for the nine months ended September 30, 2025, was $16.9 million, a change of $65.2 million from $(48.3 million) in 2024[229]. - Net cash provided by financing activities for the nine months ended September 30, 2025, was $12.3 million, compared to a cash outflow of $(14.0 million) in 2024[231]. Product Sales Breakdown - U.S. net product sales included $18.2 million from GIAPREZA®, $8.5 million from XACDURO®, and $3.2 million from XERAVA®, marking a 52% increase in total U.S. net product sales compared to $19.7 million in the third quarter 2024[202]. - U.S. product sales for GIAPREZA increased by 39% to $18.2 million for the three months ended September 30, 2025, compared to $13.1 million in 2024[210]. - The increase in XACDURO ex-U.S. product sales was primarily due to the Amended Zai Agreement, which is billed at cost[211]. Expenses and Costs - Research and development expenses surged to $13.7 million for the three months ended September 30, 2025, a 285% increase from $3.6 million in the prior year[216]. - Selling, general and administrative expenses were $27.3 million for the three months ended September 30, 2025, a 4% increase from $26.2 million in 2024[217]. - Cost of products sold increased by 157% to $25.6 million for the three months ended September 30, 2025, compared to $10.0 million in the same period last year[213]. Investments and Acquisitions - Innoviva invested $15.0 million in a term loan to Armata, which announced positive Phase 2 data in Staphylococcus aureus bacteremia[203]. - Innoviva acquired a proprietary long-acting oral drug delivery platform from Lyndra Therapeutics for an upfront payment of $10.2 million[203]. - Innoviva's portfolio of strategic assets was valued at $483.0 million as of September 30, 2025[203]. Shareholder Actions - The Board of Directors authorized a new share repurchase program for up to $125.0 million of common stock[203]. Tax and Interest - Income tax expense for the nine months ended September 30, 2025, was $24.8 million, up from $9.6 million in 2024, with an effective tax rate of 18.8% compared to 40.5% in the prior year[223]. - Interest and dividend income increased for the nine months ended September 30, 2025, due to higher average balances of cash equivalents and other interest-bearing investments[218]. - Interest expense for the three months ended September 30, 2025, decreased by $1.8 million (31%) to $(4.0 million) compared to $(5.8 million) in 2024, and for the nine months, it decreased by $4.1 million (23%) to $(13.4 million) from $(17.5 million) in 2024[220]. Changes in Investments - Changes in fair values of equity method investments for the three months ended September 30, 2025, showed a net gain of $30.8 million compared to a loss of $(18.2 million) in 2024, representing a change of $48.98 million (269%)[221]. Commitments and Agreements - As of September 30, 2025, the company had $261.0 million in notes payable related to its 2028 Notes, with an interest rate of 2.125%[233]. - The company has approximately $14.6 million in outstanding purchase commitments under a Commercial Supply Agreement with Corden Pharma CHENÔVE SAS[237]. - The maximum aggregate royalty payments under the La Jolla Royalty Agreement are capped at $225.0 million, with a maximum royalty rate of 18%[235]. Regulatory Updates - Zoliflodacin is under Priority Review by the FDA, with a target action date of December 15, 2025[203].

Investment Portfolio - As of September 30, 2025, the aggregate cost and fair value of investments were $828.7 million and $798.5 million, respectively[203]. - The portfolio consisted of 310 investments in 126 companies, including 113 debt investments, 126 warrant investments, and 71 direct equity investments[203]. - The fair value of debt investments as of September 30, 2025, was $664.9 million, with unrealized losses of $72.1 million[205]. - Total portfolio company investments reached $676.2 million as of December 31, 2024, with consumer products and services representing 16.1% of the total[210]. - As of September 30, 2025, growth capital loans accounted for 92.3% of total debt investments, amounting to $613.6 million[211]. - The ending portfolio at fair value increased to $798.5 million as of September 30, 2025, compared to $720.9 million as of September 30, 2024[218]. - The company had investments in four portfolio companies on non-accrual status, with a fair value of $24.6 million as of September 30, 2025[228]. - Debt investments funded during the nine months ended September 30, 2025, totaled $194.4 million, with a weighted average annualized portfolio yield of 12.1%[214]. - The company made direct equity investments of $1.6 million during the nine months ended September 30, 2025[214]. Financial Performance - For the three months ended September 30, 2025, the net increase in net assets resulting from operations was $15.2 million, down from $22.6 million in the same period of 2024, representing a decrease of 32.6%[230]. - For the nine months ended September 30, 2025, the net increase in net assets resulting from operations was $41.1 million, compared to $39.2 million for the same period in 2024, an increase of 4.8%[231]. - Total investment and other income for the three months ended September 30, 2025, was $22.7 million, a decrease of 14.3% from $26.5 million in the same period of 2024[232]. - Total operating expenses for the three months ended September 30, 2025, were $12.3 million, a slight decrease from $12.7 million in the same period of 2024[236]. - The weighted average portfolio yield on debt investments for the three months ended September 30, 2025, was 13.2%, down from 15.7% in the same period of 2024[250]. - Net realized losses on investments for the three months ended September 30, 2025, were $704,000, compared to net realized losses of $5.0 million in the same period of 2024[243]. - Net change in unrealized gains on investments during the three months ended September 30, 2025, was $5.6 million, compared to $13.9 million in the same period of 2024[246]. - Net investment income for the three months ended September 30, 2025, was $10.3 million, down from $13.8 million in 2024[253]. - For the three months ended September 30, 2025, total return based on NAV was 5.9%, compared to 7.6% for the same period in 2024[252]. - For the nine months ended September 30, 2025, total return based on NAV was 16.1%, compared to 13.5% for the same period in 2024[252]. Debt and Financing - As of September 30, 2025, total commitments available under the Credit Facility were $300.0 million, with $205.0 million remaining capacity[266][267]. - The total contractual obligations for debt repayment as of September 30, 2025, amounted to $470 million, with $200 million due within the next year[280]. - Unfunded commitments increased significantly from $104.5 million as of December 31, 2024, to $263.7 million as of September 30, 2025[281]. - The company has $59.8 million in unfunded commitments dependent on portfolio companies reaching certain milestones as of September 30, 2025[283]. - Floating rate borrowings totaled $95.0 million, representing 20.2% of outstanding debt as of September 30, 2025[302]. - The 2028 Notes, issued in February 2025, have an annual interest rate of 8.11%, which has been increased to 9.11%[273]. Risk Factors - The company faces risks including interest rate volatility, credit availability, and potential economic downturns that could impact its operations and financial condition[201]. - As of September 30, 2025, the credit category distribution of debt investments showed 71.0% rated as White (2) and 8.8% rated as Clear (1)[226]. - The company has no interest rate hedging transactions in place as of September 30, 2025, but may seek to enter into such transactions in the future[303]. - Changes in interest rates and foreign currency exchange rates drive the company's performance more directly than inflation[306]. - There is no assurance that hedging strategies will be available for certain foreign investments[305]. - The company faces risks associated with hedging transactions[305]. Distributions and Tax Treatment - To maintain RIC tax treatment, the company must distribute at least 90% of its net ordinary income and net realized short-term capital gains[288]. - The company has authorized cash distributions per share since its IPO, with historical distributions potentially being less in the future[290]. - The Board declared a $0.23 per share regular quarterly distribution and a $0.02 per share supplemental distribution, payable on December 30, 2025[294]. - Approximately $0.24 per share of the distributions during the year ended December 31, 2016, represented a return of capital[290]. - As of September 30, 2025, estimated undistributed taxable earnings from net investment income were $43.4 million, or $1.07 per share[293]. Currency and Hedging - As of September 30, 2025, the company had $81.2 million of investments at fair value denominated in foreign currencies[304]. - The company may utilize instruments such as forward contracts to hedge against fluctuations in currency exchange rates[305]. - Hedging activities may mitigate exposure to adverse fluctuations in interest rates or foreign currency exchange rates[305]. - Certain hedging transactions may limit the company's ability to benefit from higher interest rates or favorable movements in foreign currency exchange rates[305]. - Changes in interest rates and foreign currency exchange rates do not necessarily correlate with changes in inflation rates[306].