Financial Performance - Net income for the nine months ended September 30, 2025, totaled $895 million, a 10% increase from $816 million in the same period in 2024[278]. - Net operating income was $925 million for the nine months ended September 30, 2025, compared to $843 million for the same period in 2024, reflecting a 10% increase[278]. - Total premium income rose 5% to $3.6 billion for the nine months ended September 30, 2025, compared to the prior year[287]. - For the nine months ended September 30, 2025, total premium and policy charges increased by 3% to $2.51 billion compared to $2.44 billion in the same period of 2024[306]. - Health net sales increased by 21% to $207,386 thousand for the nine months ended September 30, 2025, up from $171,391 thousand in 2024[342]. Premium and Underwriting Margins - Life insurance premium income increased 3% to $2.51 billion, while health insurance premium income rose 8% to $1.1 billion over the prior-year period[288][289]. - The life insurance underwriting margin increased by $142 million, driven by premium growth and remeasurement gains, totaling $1.16 billion for the nine months ended September 30, 2025[283]. - Health insurance underwriting margin increased to $291 million for the nine months ended September 30, 2025, up from $281 million in 2024[289]. - The life insurance underwriting margin rose by 14% to $1.16 billion, representing 46% of premium for the nine months ended September 30, 2025, compared to 42% in the prior year[302]. - Direct to Consumer Division's underwriting margin increased to $246.9 million, or 34% of premium, compared to $210.7 million and 28% in 2024[319]. Shareholder Returns and Repurchases - The company repurchased 4.2 million shares of common stock at a total cost of $515 million, averaging $123.97 per share[271][291]. - Share repurchases for the nine months ended September 30, 2025, totaled $684,158,000, with an average price of $125.02 per share[428]. - The company has repurchased a total of $10.8 billion in common shares since the program's inception in 1986[425]. - Projected dividends for shareholders in 2025 are approximately $85 million, consistent with the amount paid in 2024[438]. - Dividends from subsidiaries for the nine months ended September 30, 2025, were $482,091,000, compared to $451,416,000 in 2024[438]. Investment Income and Portfolio - Net investment income for the nine months ended September 30, 2025, was $849 million, a decrease of 1% from the year-ago period, attributed to low growth in invested assets and higher dividend distributions[364]. - Excess investment income declined 15% to $108 million for the nine months ended September 30, 2025, compared to $126 million in 2024[290]. - The effective annual yield rate on the fixed maturity portfolio was 5.27% for the first nine months of 2025, compared to 5.26% a year earlier[364]. - The total fixed maturity portfolio had a fair value of $17.8 billion, an increase from $17.2 billion at December 31, 2024[407]. - The average annual effective yield of the fixed maturity portfolio as of September 30, 2025, was 5.28%, slightly up from 5.25% at the end of 2024[394]. Operating Expenses - Operating expenses for the nine months ended September 30, 2025, increased to $328,601,000, an 11% increase compared to $297,196,000 in 2024[423]. - Insurance administrative expenses totaled $263,363,000, remaining at 7.2% of premium income for both 2025 and 2024[423]. Debt and Liquidity - As of September 30, 2025, the company had $554 million of additional borrowing capacity under its credit facility, an increase from $458 million a year earlier[444]. - The company reduced commercial paper borrowings by $88 million since year-end 2024[451]. - The annualized interest rate on commercial paper decreased to 4.60% as of September 30, 2025, from 5.22% a year earlier[449]. - The updated five-year credit agreement for the credit facility will mature on March 29, 2029, with a capacity of up to $1.25 billion[443].

Financial Performance - Q3 2025 net sales reached $1.3 billion, up 2.7% year-over-year, exceeding the guidance midpoint[5] - Adjusted EBITDA for Q3 2025 was $163.0 million, surpassing guidance, with a margin of 12.8%[8] - North America net sales increased by 1.0% year-over-year, marking the region's first quarterly gain since Q2 2021[5] - Net sales for Q3 2025 were $1,273.7 million, a 2.9% increase from $1,240.3 million in Q3 2024[35] - Gross profit for Q3 2025 was $989.5 million, compared to $971.6 million in Q3 2024, reflecting a gross margin improvement[35] - Net income attributable to Herbalife for the nine months ended September 30, 2025, was $142.9 million, significantly up from $76.4 million in the same period of 2024[35] - Basic earnings per share for Q3 2025 were $0.42, down from $0.47 in Q3 2024[35] - Adjusted net income for Q3 2025 was $51.5 million, compared to $58.0 million in Q3 2024, reflecting a decrease of approximately 8.6%[45] - Adjusted diluted EPS for Q3 2025 was $0.50, down from $0.57 in Q3 2024, representing a decline of about 12.3%[45] - Total net income attributable to Herbalife for the nine months ended September 30, 2025, was $142.9 million, compared to $76.4 million for the same period in 2024, indicating an increase of 87.0%[45] - Adjusted EBITDA for the nine months ended September 30, 2025, was $171.9 million, compared to $162.1 million in 2024, reflecting a growth of approximately 6.0%[45] Guidance and Projections - Full-year 2025 guidance revised to a net sales range of (0.3)% to +0.7% year-over-year, with adjusted EBITDA guidance of $645 million to $655 million[21] - The company plans to exclude certain tax effects from adjusted net income and adjusted diluted EPS starting in Q1 2025[40] Capital and Debt Management - The company repaid $147.3 million of its 2025 Notes, reducing the total leverage ratio to 2.8x as of September 30, 2025[11] - Credit Agreement Total Debt as of September 30, 2025, was $2,079.1 million, with a total leverage ratio of 2.8x[48] Operational Highlights - The number of new distributors in North America increased by 17% year-over-year, contributing to overall growth[12] - Attendance at the company's training events in 2025 reached nearly 142,000, a 5% increase compared to 2024[14] - The Pro2col app's beta version was expanded to retail customers, with approximately 7,900 distributors involved in the beta group[16] - The company launched a new skincare line, HL/Skin, supported by an AI-powered assessment tool for personalized customer engagement[15] Cash Flow and Assets - Cash and cash equivalents at the end of Q3 2025 were $328.0 million, down from $417.9 million at the end of Q3 2024[39] - The company reported a net cash provided by operating activities of $235.0 million for the nine months ended September 30, 2025, compared to $215.8 million in the same period of 2024[39] - Total current assets decreased to $1,106.2 million as of September 30, 2025, from $1,143.7 million at the end of 2024[37] - Total liabilities decreased to $3,303.2 million as of September 30, 2025, compared to $3,529.2 million at the end of 2024[37] Risks and Challenges - The company faces risks related to global economic conditions, including inflation and foreign exchange rate fluctuations, which could impact its performance[30] - The company’s international operations continue to significantly impact total net sales, which are affected by fluctuations in the U.S. dollar against foreign currencies[44] Expenses and Costs - Expenses related to the Restructuring Program for Q3 2025 were $0.8 million, significantly lower than $2.7 million in Q3 2024[45] - Digital technology program costs for the three months ended September 30, 2024, were $5.1 million, with a total of $7.4 million for the TTM [48] - Share-based compensation expenses for the three months ended September 30, 2024, were $13.0 million, totaling $46.5 million for the TTM [48] - Inventory write-downs for the three months ended September 30, 2024, amounted to $5.6 million, contributing to a total of $23.3 million for the TTM [48] Technology and Innovation - The company is focusing on enhancing its information technology infrastructure and integrating artificial intelligence into its business operations[33]

Property Ownership and Sales - As of September 30, 2025, the company owned 912 properties across 46 states, the District of Columbia, Canada, and Puerto Rico[118] - The company sold 52 hotels with a total of 7,114 keys for a combined sales price of $391,352,000 and entered into agreements to sell 69 hotels for $567,500,000[120] - The company sold 56 properties for a combined sales price of $343,893 during the nine months ended September 30, 2025, and has agreements to sell 69 hotels for a total of $567,500[168] - The company acquired 20 net lease properties for a total purchase price of $54,701 during the nine months ended September 30, 2025, and has agreements to acquire five additional properties for $25,350[169] Financial Performance - Total revenues for the three months ended September 30, 2025, were $478,770,000, a decrease of 2.5% compared to $491,171,000 in the same period of 2024[130] - Hotel operating revenues decreased by 3.4% to $377,576,000, primarily due to hotel sales since July 1, 2024[131] - The company reported a net loss of $46,945,000 for the three months ended September 30, 2025, compared to a net loss of $46,901,000 in the same period of 2024[130] - Rental income decreased by $271 million (0.1%) to $300,441 million in the nine months ended September 30, 2025, compared to $300,712 million in 2024[143] - Hotel operating revenues decreased by $22,713 million (2.0%) to $1,116,944 million in the nine months ended September 30, 2025, compared to $1,139,657 million in 2024[143] - Total revenues decreased by $22,984 million (1.6%) to $1,417,385 million in the nine months ended September 30, 2025, compared to $1,440,369 million in 2024[143] - Net loss increased by $2,405 million (1.2%) to $201,539 million in the nine months ended September 30, 2025, compared to $199,134 million in 2024[143] - Revenues for the nine months ended September 30, 2025 were $1,134,198, while expenses were $1,395,011, resulting in a net loss of $260,813[195] Occupancy and Rates - As of September 30, 2025, the overall occupancy rate for all hotels was 68.9%, an increase of 1.0 percentage points compared to 67.9% in 2024[203] - The average daily rate (ADR) for all hotels decreased to $145.50 from $147.27, reflecting a decline of 1.2%[203] - Revenue per available room (RevPAR) for all hotels was $100.25, slightly up by 0.2% from $100.05 in the previous year[203] - The average occupancy for retained hotels was 67.8%, up from 66.4% in the previous year[203] - The Royal Sonesta Hotels® achieved an occupancy rate of 67.5% for the three months ended September 30, 2025, unchanged from the previous year[203] - Sonesta Hotels & Resorts® saw an increase in occupancy from 60.5% to 64.8%, a change of 4.3 percentage points[203] - The Crowne Plaza® brand reported a 2.9 percentage point increase in occupancy to 65.6% compared to 62.7% in 2024[203] Net Lease Portfolio - The net lease portfolio consisted of 752 properties with an aggregate of 13,185,953 square feet, achieving 97.3% occupancy and requiring annual minimum rents of $388,745,000[128] - The company’s largest tenant, TA, leased 175 travel centers under master leases requiring annual minimum rents of $264,262,000[128] - The net lease properties were 97.3% occupied as of September 30, 2025, with 20 properties available for lease[205] - The top tenant, TravelCenters of America Inc., accounts for 68.0% of the total annualized minimum rent with $264,262,000[208] - The net lease properties are diversified across 21 distinct industries, with travel centers representing 68.8% of the annualized minimum rent[210] - The total investment in net lease properties is $5,055,676,000, with a significant portion allocated to travel centers[210] Debt and Financing - The company issued $580,155 in zero coupon senior secured notes due 2027 in September 2025, raising net proceeds of approximately $490,000[175] - The company redeemed $350,000 of its outstanding 5.25% senior unsecured notes due 2026 in September 2025, funded using cash on hand[176] - As of September 30, 2025, the company had total debt maturities of $5,910,298, with $1,432,113 due in 2027 and $1,000,737 due in 2028[180] - The company maintains a $650,000 secured revolving credit facility, with no borrowings outstanding as of September 30, 2025, and an annual interest rate of 6.74%[172] - As of September 30, 2025, total debt to adjusted total assets ratio was 57.5%, below the maximum covenant requirement of 60%[188] - Secured debt to adjusted total assets ratio stood at 23.9%, well below the maximum limit of 40%[188] - Consolidated income available for debt service to debt service ratio was 1.56x, exceeding the minimum requirement of 1.50x[188] - Total unencumbered assets to unsecured debt ratio was 202.6%, surpassing the minimum threshold of 150%[188] - Total unencumbered assets in guarantor subsidiaries to senior guaranteed unsecured debt ratio was 3.84x, above the minimum requirement of 2.20x[188] - The company’s fixed rate debt totals $5.910 billion, with an annual interest expense of $343.401 million[219] - A one percentage point increase in interest rates would increase the annual interest cost by approximately $53.301 million, excluding certain senior secured notes[219] - The company has no outstanding amounts under its revolving credit facility and $45 million under the Variable Funding Note (VFN) as of September 30, 2025[221] Cash Flow and Capital Expenditures - Cash and cash equivalents at the end of the nine months ended September 30, 2025, increased to $441,232 from $62,846 in 2024, representing a significant increase of 603%[162] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $136,305, a decrease of 8.3% from $149,043 in 2024[162] - The company funded $126,465 for capital improvements in excess of FF&E reserves during the nine months ended September 30, 2025, and expects to fund an additional $70,000 in Q4 2025 and $150,000 in 2026[165] Shareholder Distributions - The company declared a total distribution of $5,002 to common shareholders during the nine months ended September 30, 2025, with a quarterly distribution of $0.01 per share[170] - The company declared distributions of $0.01 per share for the three months ended September 30, 2025, compared to $0.20 per share for the same period in 2024[217] Strategic Focus - The company aims to transition to a service-focused retail net lease property portfolio while improving the performance of retained hotels[121] - The company is subject to various financial covenants that restrict its ability to incur additional debt and require maintenance of specific financial ratios[187] - The company’s strategy to manage interest rate exposure has not materially changed since December 31, 2024[218]

Financial Performance - Net income decreased by $10.0 million, or 53.6%, to $8.6 million for Q3 2025 compared to $18.6 million for Q3 2024[244] - Net income for the nine months ended September 30, 2025, decreased by $16.5 million, or 26.6%, to $45.7 million from $62.2 million in the same period in 2024[272] - Noninterest income surged by $10.1 million, or 63.4%, to $26.1 million for the three months ended September 30, 2025, compared to $16.0 million in 2024[1] - Noninterest income decreased by $12.6 million, or 22.6%, to $43.1 million, primarily due to a $14.3 million increase in loss on sales of securities[4] Interest Income and Expenses - Net interest income for Q3 2025 was $83.7 million, an increase of $8.9 million, or 11.9%, compared to Q3 2024[245] - Net interest income increased to $83.7 million for the three months ended September 30, 2025, compared to $74.8 million for the same period in 2024, reflecting a margin increase from 3.16% to 3.62%[1] - Interest expense on total interest-bearing deposits decreased by $16.0 million, with $12.0 million of the decrease attributable to lower interest rates for Q3 2025[246] - Interest expense on total interest-bearing deposits decreased by $42.4 million, with a significant portion attributed to lower interest rates[274] - The average rate on interest-bearing deposits declined by 81 basis points to 3.20% for Q3 2025 from 4.01% for Q3 2024[246] - The average rate paid on interest-bearing deposits decreased to 3.21% for the nine months ended September 30, 2025, from 3.94% in the same period of 2024[341] Credit Losses and Provisions - Provision for credit losses increased by $32.2 million to $36.8 million for Q3 2025, primarily due to suspected borrower fraud[247] - Provision for credit losses rose significantly to $36.8 million for the three months ended September 30, 2025, up from $4.6 million in the same period of 2024, primarily due to suspected borrower fraud[1] - The company reported a $30.3 million increase in provision expense to $43.1 million for the nine months ended September 30, 2025, primarily due to suspected fraud[272] - Net charge-offs increased to $31.4 million for the three months ended September 30, 2025, from $9.5 million in the same period of 2024, largely due to fraud-related issues[1] - Net charge-offs rose by $21.4 million to $36.4 million, with a significant portion attributed to suspected borrower fraud impacting a specific loan relationship[3] Assets and Liabilities - Total assets decreased to $9,727.4 million as of September 30, 2025, from $9,985.8 million a year earlier[1] - Total interest-earning assets decreased to $9.21 billion for the nine months ended September 30, 2025, from $9.39 billion in the same period in 2024[278] - Total liabilities increased by $43.1 million, or 0.5%, to $8.58 billion at September 30, 2025, from $8.53 billion at December 31, 2024[300] - Total deposits were $8.33 billion at September 30, 2025, reflecting an increase of $108.7 million, or 1.3%, compared to December 31, 2024[247] - Total deposits increased by $108.7 million, or 1.3%, to $8.33 billion at September 30, 2025, from $8.22 billion at December 31, 2024[300] Equity and Capital - Book value per common share increased by $2.52, or 6.9%, to $39.23 at September 30, 2025, compared to December 31, 2024[247] - Stockholders' equity increased to $1.21 billion at September 30, 2025, from $1.15 billion at January 1, 2025, driven by net income of $45.7 million[360] - Common equity Tier 1 capital ratio for Origin Bancorp, Inc. increased to 13.59% as of September 30, 2025, up from 13.32% on December 31, 2024[363] - Total capital ratio for Origin Bancorp, Inc. decreased to 15.90% as of September 30, 2025, compared to 16.44% on December 31, 2024[363] Strategic Initiatives - The company executed various strategic initiatives as part of the Optimize Origin initiative, targeting a return on average assets (ROAA) of greater than 1% by Q4 2025[242] - The company’s interest rate risk management includes simulation models to assess the impact of interest rate changes on net interest income and fair value of equity[373] - The company’s stock repurchase program authorized up to $50 million for the next three years, following the completion of the previous program[363] Market and Economic Conditions - The Federal Reserve reduced the federal funds target rate by 25 basis points on September 17, 2025, and again on October 29, 2025, totaling a 150 basis point decrease from mid-2023[378] - Inflation impacts the company primarily through increased costs of goods and services, salaries, and occupancy expenses, rather than directly affecting monetary assets and liabilities[380]

Financial Performance - Net income decreased by $10.0 million, or 53.6%, to $8.6 million for Q3 2025 compared to $18.6 million for Q3 2024[244] - Net income for the nine months ended September 30, 2025, decreased by $16.5 million, or 26.6%, to $45.7 million from $62.2 million for the same period in 2024[272] - Noninterest income surged by $10.1 million, or 63.4%, to $26.1 million for the three months ended September 30, 2025, compared to $16.0 million in 2024[1] - Noninterest income decreased by $12.6 million, or 22.6%, to $43.1 million, primarily due to a $14.3 million increase in loss on sales of securities[4] Interest Income and Expenses - Net interest income for Q3 2025 was $83.7 million, an increase of $8.9 million, or 11.9%, compared to Q3 2024[245] - Net interest income increased to $83.7 million for the three months ended September 30, 2025, compared to $74.8 million for the same period in 2024, reflecting a margin increase from 3.16% to 3.62%[1] - Interest expense on total interest-bearing deposits decreased by $16.0 million, with $12.0 million of the decrease attributable to lower interest rates in Q3 2025 compared to Q3 2024[246] - Interest expense on total interest-bearing deposits decreased by $42.4 million, with a significant portion attributed to lower interest rates[274] - The average rate on interest-bearing deposits declined by 81 basis points to 3.20% for Q3 2025 from 4.01% for Q3 2024[246] - The average rate paid on interest-bearing deposits decreased to 3.21% for the nine months ended September 30, 2025, from 3.94% in the same period of 2024[341] Credit Losses and Provisions - Provision for credit losses was $36.8 million for Q3 2025, reflecting an increase of $32.2 million compared to Q3 2024 due to suspected fraud[247] - Provision for credit losses rose significantly to $36.8 million for the three months ended September 30, 2025, up from $4.6 million in the same period of 2024, primarily due to suspected borrower fraud[1][2] - The company reported a $30.3 million increase in provision expense to $43.1 million for the nine months ended September 30, 2025, primarily due to suspected fraud[272] - Net charge-offs increased to $31.4 million for the three months ended September 30, 2025, from $9.5 million in the same period of 2024, largely due to fraud-related losses[1] - Net charge-offs rose by $21.4 million to $36.4 million, with a significant portion attributed to suspected borrower fraud impacting a specific loan relationship[3] Assets and Liabilities - Total assets decreased to $9,727.4 million as of September 30, 2025, from $9,985.8 million a year earlier[1] - Total assets increased by $112.6 million, or 1.2%, to $9.79 billion, with cash and cash equivalents rising by $156.7 million, or 33.3%[6] - Total liabilities increased by $43.1 million, or 0.5%, to $8.58 billion at September 30, 2025, from $8.53 billion at December 31, 2024[300] - Total deposits were $8.33 billion at September 30, 2025, an increase of $108.7 million, or 1.3%, compared to December 31, 2024[247] - Total deposits increased by $108.7 million, or 1.3%, to $8.33 billion as of September 30, 2025, compared to $8.22 billion at December 31, 2024[337] Equity and Capital - Stockholders' equity increased to $1.21 billion at September 30, 2025, from $1.15 billion at January 1, 2025, driven by net income of $45.7 million[360] - Common equity Tier 1 capital ratio for Origin Bancorp, Inc. increased to 13.59% as of September 30, 2025, up from 13.32% on December 31, 2024[363] - Total capital ratio for Origin Bancorp, Inc. decreased to 15.90% as of September 30, 2025, compared to 16.44% on December 31, 2024[363] - The company repurchased 265,248 shares of common stock in Q3 2025 at an average price of $35.85, totaling $9.5 million[364] - Year-to-date 2025 stock repurchases reached 401,647 shares at an average price of $34.59, amounting to $13.9 million[364] Market and Economic Conditions - The Federal Reserve reduced the federal funds target rate range by 25 basis points on September 17, 2025, and October 29, 2025, totaling a 150 basis points decrease from mid-2023[249] - Inflation impacts the company primarily through increased costs of goods, services, and salaries, affecting liquidity and earnings[380] - Interest rate sensitivity analysis indicates a 15.7% increase in net interest income with a +400 basis point change in interest rates[377] - The company’s interest rate risk management includes simulation models to assess the impact of interest rate changes on net interest income and fair value of equity[373]

Business Overview - The company is the world's largest independent omni-channel sell-side advertising platform, processing trillions of ad requests per month[115]. - The company operates globally with established presences in North America, Australia, and Europe, and is developing its presence in Asia and South America[119]. - The shift towards digital advertising is expected to continue, with a growing percentage of advertising dollars being spent through digital channels[121]. Revenue Growth - The company anticipates that CTV will be a significant driver of revenue growth for the foreseeable future[124]. - Revenue for the three months ended September 30, 2025, increased by $17.5 million, or 11%, compared to the same period in 2024, driven by growth in CTV and mobile revenue[151]. - Revenue for the nine months ended September 30, 2025, increased by $34.4 million, or 7%, compared to the same period in 2024, with CTV and mobile revenue contributing $16.2 million and $15.2 million, respectively[152]. - The company expects revenue growth for the full year 2025, with CTV and mobile being the primary growth drivers[156]. Financial Performance - Income from operations for the three months ended September 30, 2025, increased by 66% to $25.0 million compared to $15.1 million in the prior year[149]. - Revenue for the three months ended September 30, 2025, was $179,494 thousand, an increase of 11% compared to $162,003 thousand for the same period in 2024[175]. - Gross profit for the three months ended September 30, 2025, was $110,138 thousand, reflecting an 11% increase from $99,459 thousand in the prior year[175]. - Contribution ex-TAC for the three months ended September 30, 2025, was $166,779 thousand, up 12% from $149,428 thousand in the same period last year[175]. - Net income for the three months ended September 30, 2025, was $20,058 thousand, a significant increase of 285% compared to $5,214 thousand in the prior year[175]. - Adjusted EBITDA for the three months ended September 30, 2025, was $57,171 thousand, representing a 13% increase from $50,564 thousand in the same period of 2024[175]. - For the three months ended September 30, 2025, Adjusted EBITDA increased by $6.6 million to $57.2 million compared to the prior year period[185]. - For the nine months ended September 30, 2025, Adjusted EBITDA increased by $28.0 million to $148.4 million compared to the prior year period[185]. Expenses - Cost of revenue for the three months ended September 30, 2025, increased by $6.8 million, or 11%, primarily due to a $5.6 million increase in cloud hosting, data center, and bandwidth expenses[157]. - Cost of revenue for the nine months ended September 30, 2025, increased by $6.1 million, or 3%, with significant increases in software costs and personnel costs, partially offset by a decrease in traffic acquisition costs[158]. - Sales and marketing expenses for the three months ended September 30, 2025, increased by $0.8 million, or 2%, mainly due to a $2.6 million increase in personnel costs[160]. - Sales and marketing expenses for the nine months ended September 30, 2025, increased by $5.3 million, or 4%, primarily driven by an $8.3 million increase in personnel costs[161]. - Technology and development expenses decreased by $8.9 million, or 12%, for the nine months ended September 30, 2025, primarily due to decreases in software and personnel costs[163]. - General and administrative expenses decreased by $2.8 million, or 4%, for the nine months ended September 30, 2025, mainly due to decreases in refinancing expenses and facilities-related costs[166]. Legal and Regulatory - The U.S. District Court ruled that Google violated federal antitrust laws, which is expected to positively impact the company's business prospects[132]. - The company filed a lawsuit against Google seeking damages for alleged anticompetitive conduct, which could improve its market share in open-web display[134]. Market Challenges - Macroeconomic challenges such as inflation and trade wars may negatively impact ad budgets and slow ad spend growth through the company's platform[135]. Strategic Initiatives - The introduction of the next generation SpringServe CTV platform is expected to enhance connections for buyers and streamline workflows for sellers[124]. - The company is investing in the development of identity and audience solutions to adapt to the decreased reliance on third-party cookies[127]. - Supply Path Optimization efforts are expected to deepen relationships with buyers and increase revenue opportunities for seller clients[129]. Cash Flow and Liquidity - As of September 30, 2025, the company had cash and cash equivalents of $482.1 million, with $69.1 million held in foreign currency[186]. - For the nine months ended September 30, 2025, net cash provided by operating activities was $107.7 million, down from $120.5 million in the prior year[203]. - Cash flows used in investing activities for the nine months ended September 30, 2025, were $63.7 million, compared to $40.7 million in the prior year[205]. - Cash outflows from financing activities for the nine months ended September 30, 2025, were $47.0 million, up from $19.4 million in the prior year[207]. - The company expects to meet its liquidity requirements for at least the next twelve months from existing cash and cash equivalents and cash generated from operations[192]. Debt and Obligations - The balance of the Convertible Senior Notes was $204.5 million as of September 30, 2025, maturing in March 2026[193]. - Total future lease obligations and other non-cancelable agreements as of September 30, 2025 amount to approximately $1,019.8 million[211]. - The company has a principal commitment of $205.1 million under Convertible Senior Notes due in 2026[211]. - The company has non-cancelable obligations under a cloud-managed services agreement with minimum spend amounts over three years[213]. - The company has no outstanding borrowings under the 2024 Revolving Credit Facility as of September 30, 2025[222]. Foreign Exchange and Interest Rate Risks - An immediate 10% adverse change in foreign exchange rates would result in a foreign currency loss of approximately $8.2 million as of September 30, 2025[226]. - The annualized impact to interest expense for each 100 basis points increase above the SOFR Floor on the 2024 Term Loan B Facility is approximately $3.6 million[223]. - Interest expense, net decreased by $2.2 million for the three months ended September 30, 2025, compared to the prior year, primarily due to refinancing[168]. - Foreign exchange (gain) loss, net changed by $3.4 million for the three months ended September 30, 2025, compared to the prior year, influenced by currency exchange rate movements[169]. Other Income and Expenses - Other income decreased by $1.2 million for the three months ended September 30, 2025, due to lower rental income from real estate leases[171].

Financial Performance - Net sales for Q3 2025 reached $8.689 million, a 32.5% increase from $6.554 million in Q3 2024[16] - Gross profit for Q3 2025 was $7.470 million, compared to $5.489 million in Q3 2024, reflecting a 36.1% increase[16] - Total operating expenses for Q3 2025 were $10.354 million, up from $8.140 million in Q3 2024, representing a 27.2% increase[16] - The net loss for Q3 2025 was $3.405 million, compared to a net loss of $2.497 million in Q3 2024, indicating a 36.3% increase in losses[16] - For the nine months ended September 30, 2025, the net loss was $10.931 million, compared to a net loss of $8.658 million for the same period in 2024, representing an increase of approximately 26.2%[25] - Total net sales for the three months ended September 30, 2025 were $8.7 million, a 32.4% increase from $6.6 million in the same period of 2024[48] - For the nine months ended September 30, 2025, total net sales reached $22.8 million, up 25.9% from $18.1 million in 2024[48] Expenses and Liabilities - Total operating expenses for Q3 2025 were $10.354 million, up from $8.140 million in Q3 2024, representing a 27.2% increase[16] - Research and development expenses for Q3 2025 were $662 thousand, up from $521 thousand in Q3 2024, a 27% increase[16] - Selling, general and administrative expenses for Q3 2025 were $9.692 million, compared to $7.619 million in Q3 2024, a 27.3% increase[16] - Accrued expenses and other current liabilities increased to $8,607,000 as of September 30, 2025, compared to $6,964,000 as of December 31, 2024[59] - Current liabilities increased to $12.141 million as of September 30, 2025, from $9.152 million at December 31, 2024[13] Cash and Assets - Cash and cash equivalents increased to $7.857 million as of September 30, 2025, from $3.450 million at December 31, 2024[13] - Total assets grew to $21.412 million as of September 30, 2025, compared to $20.471 million at December 31, 2024[13] - As of September 30, 2025, cash, cash equivalents, and restricted cash totaled $8.107 million, up from $3.700 million at December 31, 2024, reflecting a significant increase of approximately 118.5%[31] - As of September 30, 2025, the Company's cash position totaled $13.2 million, an increase from $12.2 million as of December 31, 2024[38][49] Stock and Equity - The company’s total stockholders' equity (deficit) as of September 30, 2025, was $(1.073) million, compared to $(188.021) million as of March 31, 2025, showing a significant improvement[22] - Stock-based compensation for the nine months ended September 30, 2025, was $1.460 million, slightly higher than $1.356 million in 2024, indicating a year-over-year increase of about 7.7%[25] - The company reported a basic net loss per share for the nine months ended September 30, 2025, with 2,899 total common stock equivalents considered in the diluted loss per share calculation[82] Market Operations - The company has paused operations in Germany, with sales in Europe managed by electroCore UK Ltd, indicating a strategic shift in market operations[27] - Sales to the United States Department of Veterans Affairs accounted for 69.9% of net sales for the three months ended September 30, 2025, compared to 72.9% in 2024[44] Financing and Agreements - The Loan and Security Agreement with Avenue provides for term loans of up to $12.0 million, with $7.5 million already advanced[41] - The Company secured a Loan and Security Agreement with Avenue for term loans totaling up to $12 million, with an initial tranche of $7.5 million[64] - The principal balance of the Term Loans bears interest at a variable rate, with a minimum of 12.5%[66] - The Company entered into a Sales Agreement allowing for the sale of up to $20 million in common stock, with $217,000 raised from the sale of 14,265 shares during the nine months ended September 30, 2025[78] Acquisitions and Investments - The company completed the acquisition of NURO on May 1, 2025, with contingent value rights potentially entitling holders to cash payments based on future sales[90] - Approximately $221,000 was distributed to former holders of NURO common stock under the CVR Agreement in October 2025[95] - The company incurred $120,000 in expenses for educational grants to the Vagus Nerve Society during the nine months ended September 30, 2025[99] Segment Information - The company operates as a single segment focused on Bioelectronic Innovations, with performance evaluated based on loss from operations[100] - Bioelectronic Innovations segment net sales for Q3 2025 reached $8.689 billion, a 32.5% increase from $6.554 billion in Q3 2024[102] - Gross profit for the segment in Q3 2025 was $7.470 billion, up 36.1% from $5.489 billion in Q3 2024[102] - Total operating expenses for the segment increased to $10.354 billion in Q3 2025, compared to $8.140 billion in Q3 2024, reflecting a 27.2% rise[102] - The loss from operations for Q3 2025 was $2.884 billion, compared to a loss of $2.651 billion in Q3 2024[102] Foreign Currency Exposure - The company is exposed to foreign currency fluctuations, particularly with sales in British Pound Sterling and Japanese Yen, which may impact competitiveness[171] - The company does not hedge its foreign currency exchange rate risk, which could affect financial results[173]

Sales Performance - European based fragrance product sales represented approximately 70% of net sales for the nine months ended September 30, 2025, compared to 67% for the same period in 2024[86]. - Net sales for the three months ended September 30, 2025, increased by 1% to $429.6 million, while net sales for the nine months ended September 30, 2025, also increased by 1% to $1,102.3 million[99]. - Sales in the European based operations for the three months ended September 30, 2025, increased by 5%, driven by brands such as Jimmy Choo, Lacoste, and Coach, which grew by 16%, 8%, and 6%, respectively[100]. - United States based operations sales decreased by 6% for the three months ended September 30, 2025, primarily due to the discontinuation of the Dunhill license[101]. - North America net sales rose by 4% for the nine months ended September 30, 2025, while Western Europe saw a 3% increase[104]. - The discontinuation of the Dunhill license decreased net sales by 1% for the nine months ended September 30, 2025, compared to the prior year[99]. - Roberto Cavalli fragrance sales grew by 44% and 33% in the three and nine months ended September 30, 2025, respectively, due to strong innovation and new product launches[101]. - European based operations reported net sales of $295.3 million for the three months ended September 30, 2025, an increase from $282.4 million in the prior year[105]. - United States based operations saw net sales decline to $137.1 million for the three months ended September 30, 2025, down from $146.1 million in the prior year[108]. Financial Metrics - Gross profit margin as a percentage of net sales was 63.5% and 64.4% for the three and nine months ended September 30, 2025, compared to 63.9% and 63.6% for the same periods in the prior year[105]. - Selling, general and administrative expenses as a percentage of net sales were 38.2% and 42.4% for the three and nine months ended September 30, 2025, compared to 38.9% and 41.8% for the same periods in the prior year[110]. - Net income attributable to Interparfums, Inc. was $65.8 million and $140.3 million for the three and nine months ended September 30, 2025, compared to $62.3 million and $140.1 million for the same periods in the prior year[123]. - Royalty expense represented 8.1% and 8.2% of net sales for the three and nine months ended September 30, 2025, compared to 8.0% and 8.1% for the same periods in the prior year[114]. - Operating margins were 25.3% and 22.0% for the three and nine months ended September 30, 2025, compared to 25.0% and 21.9% for the same periods in the prior year[115]. - Promotion and advertising expenses were $65.5 million and $185.9 million for the three and nine months ended September 30, 2025, representing 15.3% and 16.9% of net sales[112]. Debt and Cash Position - Long-term debt aggregated $196.9 million as of September 30, 2025, an increase from $157.3 million as of December 31, 2024[117]. - As of September 30, 2025, the company had $187.9 million in cash, cash equivalents, and short-term investments, with no liquidity issues expected[126]. - Working capital as of September 30, 2025, totaled $688.0 million, with approximately 77% of total assets held by European operations[127]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $68.4 million, up from $49.7 million in the same period of 2024[133]. - Accounts receivable increased by 23% from year-end 2024, with days' sales outstanding rising to 89 days from 83 days year-over-year[133]. - Inventory levels decreased by 5% from year-end 2024, with finished goods comprising 68% of inventory as of September 30, 2025, compared to 63% a year earlier[133]. Strategic Initiatives - The company plans to continue investments in fast-growing markets and channels to increase market share[94]. - In July 2025, the company’s subsidiary signed an exclusive fragrance license agreement with Longchamp, effective through December 31, 2036, with the first launch expected in 2027[129]. - The company acquired all intellectual property rights relating to Maison Goutal in June 2025, with commercial use expected to begin after the existing license expires on December 31, 2025[129]. - The annual dividend was increased to $3.20 per share in February 2025, with the next quarterly dividend of $0.80 per share payable on December 31, 2025[139]. - As of September 30, 2025, the company had foreign currency contracts totaling approximately $60 million with maturities of less than one year[147]. - The company anticipates potential inflationary impacts in the last quarter of 2025 and beyond due to tariffs affecting its cost structure[141].

Financial Performance - The company reported a net loss of $8.6 million for the three months ended September 30, 2025, compared to a net loss of $11.5 million for the same period in 2024, indicating a 25.2% improvement in quarterly losses [92]. - For the nine months ended September 30, 2025, the net loss was $46.4 million, slightly higher than the $44.1 million loss for the same period in 2024, reflecting a 5.2% increase in losses year-over-year [92]. - As of September 30, 2025, the company had an accumulated deficit of $426.5 million, primarily due to research and development and general administrative expenses [92]. - Net loss for the three months ended September 30, 2025 was $8.6 million, a decrease of $2.9 million from the net loss of $11.5 million in the same period in 2024 [106]. - General and administrative expenses for the nine months ended September 30, 2025 decreased by $2.4 million to $9.7 million compared to the same period in 2024 [112]. - Net cash used in operating activities for the nine months ended September 30, 2025 was $42.0 million, compared to $33.8 million for the same period in 2024 [123]. - Total external research and development expenses for the nine months ended September 30, 2025 increased by $7.6 million to $27.6 million compared to the same period in 2024 [107]. - Net cash provided by investing activities for the nine months ended September 30, 2025 was $19.6 million, down from $48.3 million in the same period in 2024 [124]. - There were no restructuring and asset impairment charges for the three and nine months ended September 30, 2025, compared to $2.5 million in the same periods in 2024 [113]. Funding and Cash Position - The company raised approximately $425 million in gross proceeds from equity instruments since inception through September 30, 2025, with an additional $25 million received from a former collaboration partner [92]. - The company has cash, cash equivalents, and marketable securities totaling $29.1 million as of September 30, 2025, which is insufficient to fund planned operations for the next year [93][94]. - As of September 30, 2025, the company had cash and cash equivalents of $29.1 million, which may not be sufficient to fund operations for the next year [117]. - The company entered into a sales agreement to sell up to $75 million of common stock, but no shares were sold in the three months ended September 30, 2025 [116]. Research and Development - The company is advancing its product candidate SIM0505, which is currently in Phase 1 dose escalation studies in China for treating solid tumors, with proof of concept data expected in the first half of 2026 [87]. - The FDA accepted an IND application for the company's product candidate LNCB74 in December 2024, with the first patient dosed in January 2025 and proof of concept data also expected in the first half of 2026 [89]. - The company plans to incur substantial expenditures in the foreseeable future to advance SIM0505 and LNCB74 through clinical development and regulatory approval processes [95]. - Research and development expenses for the three months ended September 30, 2025 decreased by $2.6 million to $6.1 million compared to the same period in 2024 [106]. Operational Changes - The company has paused internal manufacturing operations and reduced its workforce as part of a restructuring effort to align with its focused pipeline [90]. - The company does not expect to generate product revenue until it obtains marketing approval for its product candidates, with significant doubt about its ability to continue as a going concern [94][96]. Accounting and Reporting - Recent accounting pronouncements may impact the company's financial position and results of operations [134]. - As a "smaller reporting company," the company is not required to provide certain market risk disclosures [135].

Financial Performance - Net sales for Q3 2025 were $611.7 million, representing a 13% increase compared to Q3 2024, with organic sales growth of 9%[5] - Operating income increased to $111.4 million, up 20% year-over-year, with an operating margin of 18.2%, an increase of 110 basis points[4] - Diluted earnings per share (EPS) rose to $2.45, a 19% increase from the previous year, while adjusted diluted EPS increased by 23% to $2.50[4] - Net income for the nine months ended September 28, 2025, was $257.1 million, compared to $223.6 million for the same period in 2024, reflecting an increase of 15.0%[22] - Operating income for the nine months ended September 28, 2025, was $334.4 million, up from $301.4 million in the same period of 2024, indicating an increase of 10.9%[27] - Adjusted operating income for the nine months ended September 28, 2025, was $358.5 million, compared to $308.7 million in the same period of 2024, an increase of 16.2%[27] - Segment earnings for Q3 2025 were $130.6 million, compared to $105.6 million in Q3 2024, reflecting a significant increase in profitability[28] Sales and Revenue Growth - The company is raising its full year 2025 sales outlook to an increase of 7% to 8% and organic sales growth to 4% to 5%[12] - Sales in the Americas reached $464 million, a 16% increase on a reported basis and 13% organically, driven by favorable pricing and demand[7] - European sales were $112 million, up 4% on a reported basis but down 2% organically, impacted by lower volumes despite favorable foreign exchange movements[8] - Total segment net sales for Q3 2025 reached $642.3 million, a 12.5% increase from $568.7 million in Q3 2024[28] - Net sales from external customers for the nine months ended September 28, 2025, were $1,813.4 million, up 5.9% from $1,711.8 million in the same period of 2024[29] Cash Flow and Financial Position - Operating cash flow for the first nine months of 2025 was $247 million, resulting in free cash flow of $216 million, an increase from $204 million in the same period last year[10] - Cash and cash equivalents at the end of the period were $457.7 million, compared to $303.9 million at the end of September 29, 2024, marking a significant increase of 50.5%[22] - Free cash flow for the nine months ended September 28, 2025, was $216.0 million, compared to $204.2 million in the same period of 2024[30] - The company reported a net cash provided by operating activities of $247.3 million for the nine months ended September 28, 2025, compared to $221.6 million for the same period in 2024, an increase of 11.6%[22] - The company reported a net debt of $(260.2) million as of September 28, 2025, compared to $(189.9) million at the end of 2024, indicating a stronger cash position[33] Asset and Equity Growth - Total assets increased to $2,725.4 million as of September 28, 2025, up from $2,397.0 million at December 31, 2024, representing a growth of 13.7%[20] - Total current assets rose to $1,313.9 million as of September 28, 2025, compared to $1,083.5 million at December 31, 2024, reflecting a growth of 21.3%[20] - Total stockholders' equity increased to $1,956.8 million as of September 28, 2025, up from $1,707.9 million at December 31, 2024, representing a growth of 14.6%[20] Operational Efficiency - Full year operating margin is expected to be between 18.1% and 18.2%, reflecting an increase of 80 to 90 basis points[12] - The operating margin for the third quarter of 2025 improved to 18.2%, up from 17.1% in the third quarter of 2024[27] - The adjusted operating margin for 2025 is forecasted to be between 19.1% to 19.2%, reflecting ongoing operational efficiencies[35] Corporate Actions - The acquisition of Haws Corporation was completed on November 4, 2025, enhancing the company's product offerings in emergency safety and hydration solutions[4] - The company repurchased approximately 15,000 shares of Class A common stock for $3.9 million during Q3 2025, with $133 million remaining under the stock repurchase program[11] Foreign Exchange Impact - The company experienced a foreign exchange impact of (1.1)% on total net sales for Q3 2025, highlighting the challenges posed by currency fluctuations[29]