Financial Performance - Sales for Q3 2025 were $513.7 million, an increase of 3.0% year over year and 5.2% on an organic basis[5] - Adjusted EBITDA was $66.8 million, reflecting a 10% increase compared to the prior year, with an adjusted EBITDA margin of 13%, up 80 basis points[5] - Free cash flow reached $66.7 million, representing a 179% increase year over year[5] - The Filtration & Advanced Materials segment reported net sales of $198.3 million, up 4.6% year over year[6] - The Sustainable & Adhesive Solutions segment achieved net sales of $315.4 million, a 5.6% increase on an organic basis[8] - Net sales for Q3 2025 were $513.7 million, a 3.0% increase from $498.5 million in Q3 2024[29] - Gross profit for Q3 2025 was $99.4 million, up 6.2% from $93.6 million in Q3 2024[29] - Operating profit for Q3 2025 was $16.0 million, compared to $7.0 million in Q3 2024, indicating a significant improvement[29] - Consolidated operating profit for the three months ended September 30, 2025, was $16.0 million, representing a 128.6% increase from $7.0 million in 2024[33] - Adjusted operating profit for Q3 2025 was $45.6 million, up from $38.5 million in Q3 2024, representing a 28.8% increase[39] - Adjusted EBITDA for Q3 2025 reached $66.8 million, compared to $60.8 million in Q3 2024, indicating a 9.8% growth[40] - Organic growth for the consolidated Mativ was 5.2% for the three months ended September 30, 2025, with FAM segment organic growth at 4.6% and SAS segment at 5.6%[38] Debt and Cash Flow - Total debt as of September 30, 2025, was $1,028.9 million, with net debt of $931.8 million[14] - Long-term debt decreased to $1,026.0 million as of September 30, 2025, from $1,086.7 million at the end of 2024[30] - Total current liabilities increased to $314.7 million as of September 30, 2025, from $274.5 million at the end of 2024[30] - Cash provided by operating activities year-to-date 2025 was $114.5 million, with capital spending totaling $28.7 million[13] - Cash provided by operating activities for Q3 2025 was $72.8 million, compared to $37.6 million in Q3 2024[40] - Cash and cash equivalents increased to $102.9 million at the end of Q3 2025, compared to $94.3 million at the beginning of the period[31] Loss and Earnings - GAAP loss for Q3 2025 was $3.2 million, with GAAP EPS at $(0.06)[5] - Net loss for Q3 2025 was $3.2 million, significantly improved by 84.6% compared to a net loss of $20.8 million in Q3 2024[29] - Earnings per share - diluted for Q3 2025 was $(0.06), an improvement from $(0.38) in Q3 2024[39] - Adjusted earnings per share - diluted for Q3 2025 was $0.39, up from $0.21 in Q3 2024[39] - Adjusted income for the nine months ended September 30, 2025, was $34.1 million, compared to $31.1 million in the same period of 2024[39] Expenses and Impairments - Research and development expenses for the nine months ended September 30, 2025, increased by 6.3% to $18.6 million from $17.5 million in the same period of 2024[29] - The company reported a goodwill impairment expense of $411.9 million for the nine months ended September 30, 2025[31] - The company incurred restructuring and impairment expenses of $8.1 million for the three months ended September 30, 2025, down 27.7% from $11.2 million in 2024[32] - Non-manufacturing expenses for the consolidated segments totaled $75.3 million, a slight decrease of 0.1% from $75.4 million in 2024[32] Cost of Goods Sold - The FAM segment's cost of products sold increased by 7.2% to $155.8 million, while SAS segment costs decreased slightly by 0.4% to $258.5 million[32]

Financial Results - Hudson Technologies, Inc. reported its financial results for Q3 2025, with specific details provided in the press release issued on November 3, 2025[5] - The press release containing the financial results is furnished as Exhibit 99.1, which includes detailed performance metrics[9] Management Changes - The company announced a management change, with Brian F. Coleman stepping down as Chairman, President, and CEO, effective immediately[6]

Financial Performance - Net sales for the three months ended September 27, 2025, increased to $684,429,000, up 10.9% from $616,877,000 for the same period in 2024[10] - Gross profit for the six months ended September 27, 2025, rose to $377,762,000, compared to $330,548,000 for the same period in 2024, reflecting a 14.3% increase[10] - Operating income for the three months ended September 27, 2025, was $74,815,000, a 12.8% increase from $66,678,000 in the prior year[10] - Net income attributable to Champion Homes, Inc. for the six months ended September 27, 2025, was $122,886,000, up 22.2% from $100,528,000 in the same period of 2024[10] - For the three months ended September 27, 2025, net income was $58.2 million, compared to $54.7 million for the same period in 2024, representing an increase of 6.4%[18] - The company’s total revenue for the six months ended September 27, 2025, was $1.39 billion, compared to $1.24 billion for the same period in 2024, indicating a growth of 12.1%[61] - For the three months ended September 27, 2025, consolidated net sales were $684.4 million, with U.S. Factory-built Housing contributing $649.1 million and Canadian Factory-built Housing contributing $26.1 million[72] - The company’s net income attributable to Champion Homes, Inc. for the three months ended September 27, 2025, was $58.2 million, an increase from $54.7 million in the same period of 2024[100] Assets and Liabilities - Total current assets increased to $1,112,431,000 as of September 27, 2025, compared to $1,086,498,000 as of March 29, 2025, marking a growth of 2.4%[7] - Total stockholders' equity increased to $1,581,260,000 as of September 27, 2025, compared to $1,544,438,000 as of March 29, 2025, indicating a growth of 2.4%[7] - Other current liabilities totaled $266.4 million as of September 27, 2025, down from $280.1 million on March 29, 2025[52] - As of September 27, 2025, total long-term debt was $24.0 million, a decrease from $24.8 million as of March 29, 2025[55] Cash Flow - The company reported a net cash provided by operating activities of $151,178,000 for the six months ended September 27, 2025, compared to $144,442,000 for the same period in 2024[15] - The company incurred a net cash used in investing activities of $37,795,000 for the six months ended September 27, 2025, compared to $22,553,000 in the prior year[15] - Cash and cash equivalents at the end of the period were $618,740,000, up from $610,338,000 at the beginning of the period, reflecting a net increase of 1.3%[15] - Cash used in financing activities was $107.9 million for the six months ended September 27, 2025, compared to $47.3 million in the same period of 2024, largely due to stock repurchases totaling $100.0 million[152] Operational Metrics - The company operated 42 manufacturing facilities in the U.S. and 4 in Canada as of September 27, 2025, maintaining a strong operational footprint[22] - The company has 82 sales centers across the U.S. for retail operations, enhancing its market presence[22] - The company’s manufacturing backlog decreased to $313.2 million as of September 27, 2025, down from $427.5 million as of September 28, 2024[98] - The company’s U.S. wholesale market share of HUD code homes sold was 22.6% for the five months ended August 31, 2025, compared to 21.9% for the same period in 2024[99] Acquisitions and Investments - The company acquired Iseman Homes, Inc. for a total purchase consideration of $26.8 million, which includes $24.6 million in cash and contingent consideration valued at $0.2 million[36] - The company made a $137.8 million equity investment in ECN Capital Corporation, acquiring approximately 12% of its common shares[48] - The company completed the acquisition of Iseman Homes in the first quarter of fiscal 2026 and is currently integrating it into operations[164] Expenses and Profitability - Total gross profit for the three months ended September 27, 2025, was $187.9 million, an increase of $21.6 million or 13.0% compared to $166.3 million in the same period of the prior year[105] - Selling, general, and administrative expenses totaled $113.1 million for the three months ended September 27, 2025, an increase of $13.5 million or 13.5% compared to the prior year[111] - Interest income, net for the three months ended September 27, 2025, was $4.0 million, a decrease of $0.7 million or 14.8% from the prior year[116] - Income tax expense for the three months ended September 27, 2025, was $18.6 million, representing an effective tax rate of 23.6%, up from $15.4 million and 21.6% in the prior year[117] Internal Controls and Compliance - The Company identified a material weakness in internal controls related to the retail operations of Regional Homes, acquired in October 2023, due to insufficiently documented manual controls[160] - As of September 27, 2025, the Company's disclosure controls and procedures were deemed ineffective by the CEO and CFO[159] - Management is implementing remediation measures, including improving retail accounting systems and increasing corporate oversight[162] - The Company continues to assess the effectiveness of its internal control over financial reporting and may require additional measures for remediation[163] Legal and Risk Factors - The Company is involved in various legal proceedings, including commercial disputes and product liability claims[167] - The risks associated with mergers and acquisitions, including integration challenges, were highlighted as potential concerns[161]

Workforce Reduction and Restructuring - The company announced a reduction in force plan to reduce non-production global workforce by approximately 11%, or about 575 employees, with estimated one-time cash charges between $15.0 million to $20.0 million[160] - The company announced a reduction in force plan expected to reduce the global workforce by approximately 11%, or about 575 employees, with one-time cash charges estimated at $20.0 million[195] - The company plans to close its Monterrey, Mexico facility, incurring a pre-tax charge of approximately $13.7 million, with $12.2 million in cash charges expected for severance and related costs[196] - The company recorded a $3.9 million severance cost during the first half of fiscal 2026 related to restructuring efforts[197] - The company incurred cash charges of $9.2 million related to the closure of the Ooltewah, Tennessee facility, which produced flooded motive power batteries[207] Financial Performance - Net sales increased by $67.6 million or 7.7% in Q2 fiscal 2026 compared to Q2 fiscal 2025, driven by a 3% increase in organic volume and pricing[182] - Net sales for the first six months of fiscal 2026 rose by $107.7 million or 6.2% compared to the same period in fiscal 2025, attributed to a 2% increase in acquisitions and pricing[183] - Gross profit increased by $25.1 million or 9.9% in Q2 fiscal 2026, with gross profit margin improving by 60 basis points compared to Q2 fiscal 2025[189] - Operating earnings for the quarter ended September 28, 2025, were $92.0 million, a decrease of 7.4% from $99.4 million in the same quarter of the previous year[217] - Operating earnings decreased by $12.2 million or 6.4% for the six months of fiscal 2026 compared to the same period in fiscal 2025[220] - Earnings before income taxes for the six months ended September 28, 2025, were $142.1 million, down 13.1% from $163.5 million in the prior year[231] - Income tax expense for the six months ended September 28, 2025, was $16.2 million, a 45.8% increase from $11.1 million in the same period of 2024[233] - Interest expense remained flat at $23.5 million for the six months of fiscal 2026, compared to the same period in fiscal 2025[224] - Other (income) expense, net for the six months ended September 28, 2025, was an expense of $12.9 million, significantly higher than $3.7 million in the prior year[229] Segment Performance - Energy Systems segment net sales increased by $52.6 million or 13.8% in Q2 fiscal 2026, with a 10% increase in organic volume[185] - Motive Power segment net sales decreased by $7.0 million or 1.9% in Q2 fiscal 2026, primarily due to a 6% decrease in organic volume[186] - Specialty segment net sales increased by $22.0 million or 16.3% in Q2 fiscal 2026, driven by a 7% increase from acquisitions and organic volume[187] - The Energy Systems segment reported operating earnings of $33.6 million, a 37.8% increase from $24.2 million in the prior year[217] - The Motive Power segment experienced a decline in operating earnings to $47.9 million, down 16.7% from $57.6 million year-over-year[217] - The Specialty segment saw a significant increase in operating earnings to $14.6 million, up 97.7% from $7.5 million in the previous year[217] Cash and Liquidity - The company has $388.6 million in available cash and cash equivalents and $489.3 million in undrawn committed credit lines as of September 28, 2025[172] - The company purchased 2,375,741 shares for $217.8 million during the first six months of fiscal 2026, indicating strong capital structure and liquidity[181] - Operating activities generated cash of $219.0 million in the first six months of fiscal 2026, a significant increase from $44.0 million in the same period of fiscal 2025[240] - Investing activities used cash of $62.4 million in the first half of fiscal 2026, primarily for capital expenditures of $53.9 million and acquisitions of $12.7 million[242] - Financing activities used cash of $128.2 million in the first six months of fiscal 2026, including treasury stock purchases totaling $217.8 million[244] - Total cash and cash equivalents increased by $45.5 million to $388.6 million in the first half of fiscal 2026, compared to an increase of $74.6 million to $407.9 million in fiscal 2025[246] Market Conditions and Economic Factors - The ongoing geopolitical tensions, including the war in Ukraine and the Israel-Hamas conflict, are impacting global economic conditions and supply chains[164] - Inflation remains a challenge in North America, China, and EMEA, although it is somewhat more controlled compared to sharp increases in 2023[165] - The data center market is currently in a growth cycle driven by AI and increasing digitization, while the communications market is experiencing a slow spending recovery[167] - The company anticipates that selling prices will be higher in fiscal 2025 compared to fiscal 2024 due to inflationary cost increases[169] Commodity and Foreign Exchange Exposure - The company experienced fluctuations in lead prices, ranging from approximately $1.00 per pound to $0.90 per pound in fiscal year 2025, impacting production costs[168] - Approximately 25% of the company's revenue is now subject to agreements that adjust pricing based on a market-based index for lead, with customer pricing changes generally lagging behind commodity price movements by six to nine months[168] - The company has forward contracts for lead, with a total value of $95.2 million for 104.4 million pounds at an average cost of $0.91 per pound, covering 18% of lead requirements[262] - Approximately 93% of the cost of lead requirements is known for the remaining quarter of the fiscal year, considering hedge contracts and FIFO accounting policy[263] - A 10% increase in the cost of lead would have raised the cost of goods sold by approximately $18.0 million in the three months of fiscal 2026[264] - About 40% of sales and related expenses are transacted in foreign currencies, impacting sales revenue and profit margins[265] - The largest foreign currency exposure arises from converting U.S. dollar-based lead costs into local currencies in Europe[266] - The company hedges approximately 5% - 10% of its known annual foreign exchange transactional exposures[267] - Gains and losses from hedging instruments offset foreign exchange gains or losses on the underlying assets and liabilities[268] - An unfavorable 10% movement in exchange rates would have adversely changed hedge valuations by approximately $81.0 million and $48.8 million at September 28, 2025, and September 29, 2024, respectively[269] Taxation - The company continues to monitor the impact of global tax legislation, including the OECD's Pillar 2, which may affect future tax rates[234] - The consolidated effective income tax rates for Q2 fiscal 2026 and 2025 were 10.5% and 2.3%, respectively, with a six-month rate of 11.4% for fiscal 2026 compared to 6.8% for fiscal 2025[237] - Foreign income accounted for 53% of worldwide income for both fiscal 2026 and 2025, with foreign effective tax rates increasing from 15% in fiscal 2025 to 17% in fiscal 2026[238]

Financial Performance - Operating income for Q3 2025 was $4.8 million, up from $3.3 million in Q3 2024, and $17.0 million for the first nine months of 2025 compared to $12.1 million in the same period of 2024[46]. - Net sales increased by $6.3 million in Q3 2025 and $13.1 million for the first nine months of 2025, primarily driven by higher sales in the Security Products and Marine Components segments[50]. - Security Products net sales rose by 14% in Q3 2025 and 8% for the first nine months, with significant contributions from the government security market[58]. - Marine Components net sales surged by 36% in Q3 2025 and 29% for the first nine months, largely due to increased sales to the industrial and government markets[60]. - Operating income margin for Q3 2025 was 11.9%, an increase from 9.9% in Q3 2024, driven by higher sales and improved cost management[53]. - Sales for the first nine months of 2025 exceeded those for the same period in 2024, driven by improved demand in government and industrial markets[63]. - Marine Components sales and operating income for the first nine months of 2025 exceeded prior year levels, with a notable one-time stocking event for a towboat OEM customer in Q1 2025[63]. Cost and Margin Analysis - Gross margin as a percentage of net sales for Q3 2025 decreased to 27.6% from 28.1% in Q3 2024, while it increased to 29.9% for the first nine months of 2025 compared to 28.2% in the same period of 2024[51]. - The gross margin for Marine Components increased to 30.5% in the first nine months of 2025, up from 19.7% in the same period of 2024, reflecting improved cost coverage[62]. - Operating costs and expenses for Q3 2025 were comparable to Q3 2024, but increased by $1.0 million for the first nine months of 2025 due to higher employee-related costs[52]. Cash Flow and Capital Expenditures - The net cash provided by operating activities for the first nine months of 2025 decreased by $4.8 million compared to the same period in 2024[68]. - Capital expenditures for the first nine months of 2025 were $3.1 million, up from $1.2 million in the same period of 2024[72]. - The company expects capital expenditures for 2025 to be approximately $4 million to meet existing customer demand and maintain facilities[81]. Market and Operational Risks - The company anticipates potential risks including supply chain disruptions, competition from low-cost manufacturers, and uncertainties in new product development[48]. Shareholder Actions - The board declared a special dividend of $1.00 per share in August 2025, totaling $12.3 million[74]. - The company has 523,647 shares available for repurchase under an authorized stock repurchase program as of September 30, 2025[82]. Inventory and Receivables Management - Average days sales outstanding for Security Products increased from 36 days in September 2024 to 42 days in September 2025[71]. - Average days in inventory for Security Products increased from 85 days in September 2024 to 91 days in September 2025[72]. Future Sales Expectations - Security Products net sales in 2025 are expected to improve over 2024, primarily due to higher sales to the government security market, despite softness in transportation and tool storage markets[64].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39319 GENERATION BIO CO. (Exact name of registrant as specified in its charter) Delaware 81-4301284 (State or other ...

Financial Performance - Third quarter net loss attributable to common shareholders was $6.2 million, or $0.13 per diluted share, compared to net income of $320.2 million, or $6.07 per diluted share, in the year-ago period[10] - Operating funds from operations attributable to common shareholders ("Operating FFO") was $5.6 million, or $0.11 per diluted share, compared to $42.8 million, or $0.81 per diluted share, in the year-ago period[10] - Rental income for Q3 2025 was $24,203,000, a decrease of 59.3% compared to $59,441,000 in Q3 2024[23] - Net operating income (NOI) for Q3 2025 was $15,128,000, down 62.5% from $40,270,000 in Q3 2024[23] - The company reported a net loss attributable to common shareholders of $6,158,000 in Q3 2025, compared to a net income of $320,164,000 in Q3 2024[25] - FFO (Funds from Operations) attributable to common shareholders was $3,639,000 in Q3 2025, compared to a loss of $13,495,000 in Q3 2024[25] - Operating FFO per share was $0.11 for Q3 2025, down from $0.82 in Q3 2024[25] - Common stock dividends declared per share were $3.25 in Q3 2025, compared to $0.00 in Q3 2024[25] Asset and Liability Management - The total assets decreased to $653,955,000 in Q3 2025 from $933,602,000 in Q4 2024, reflecting a decline of 30%[27] - Total liabilities decreased to $345,669,000 in Q3 2025 from $416,858,000 in Q4 2024, a reduction of 17%[27] - The company reported a net debt of $207.7 million, down from $336.2 million, reflecting a 38.1% decrease[34] - Cash balance increased to $128,234,000 in Q3 2025 from $54,595,000 in Q4 2024, an increase of 134%[27] Property Transactions and Leases - The company sold seven properties for an aggregate price of $380.9 million year to date[7] - The company has properties under contract for sale valued at over $292 million, with buyers' due diligence conditions expired[7] - The company has agreed to sell East Hanover Plaza, Southmont Plaza, and Stow Community Center for an aggregate price of $126.0 million, with closing expected in Q4 2025[18] - Executed six new leases and 23 renewals for 237,000 square feet during the quarter[10] - The company completed a strategic spin-off of Curbline Properties on October 1, 2024, which is now reflected as discontinued operations[64] Leasing and Occupancy - Reported a leased rate of 87.6% at September 30, 2025, down from 91.1% at December 31, 2024[10] - The average occupancy rate across properties was 87.6% as of September 30, 2025[60] - The leased rate stands at 87.6%, down from 91.3% a year ago, representing a decline of 3.7 percentage points[29] - The company has a total of 151 leases with an average rent of $14.79 per square foot, with 425 leases under 10,000 square feet[42] Impairments and Charges - Recorded impairments of $106.6 million due to changes in the hold period assumptions for five wholly-owned assets[10] - The company recorded impairment charges of $106,570,000 in Q3 2025, compared to $66,600,000 in the same period last year[25] Market Capitalization and Share Value - The market value per share decreased to $9.01 from $15.29 over the past year, a decline of 41.5%[34] - Total market capitalization has decreased to $680.2 million from $1.14 billion, a reduction of 40.3%[34] Future Projections and Strategy - The company anticipates continued market expansion and strategic acquisitions in the upcoming quarters[46] - The overall strategy includes focusing on lease renewals and potential market expansions to enhance revenue streams[97] - The company expects to maintain a consistent growth in ABR across the years, with significant contributions from leases expiring in the coming years[97] Joint Ventures and Additional Properties - The company has a total of 11 joint venture properties, with an average owned percentage of 20%[49] - The joint ventures have a total GLA of 3,755, with a net operating income (NOI) of $14,081 at 100%[49] - The debt balance for the joint ventures stands at $440,992, with mortgage debt at $103,688[49] Rental Income and Revenue - Rental income for the third quarter includes minimum rents of $3,377 and recoveries of $1,144[53] - The company reported a net income loss attributable to unconsolidated joint ventures of $(1,639,000) in Q3 2025, compared to a gain of $985,000 in Q3 2024[57] - Total revenues for 9M 2025 decreased to $61,099,000 from $62,667,000 in 9M 2024, reflecting a year-over-year decline of approximately 2.5%[57]

Revenue Performance - Total revenue decreased by 10.0% to $246.2 million, compared to $273.6 million in Q3 2024[7] - Bumble App revenue decreased by 9.7% to $198.8 million, compared to $220.2 million in Q3 2024[7] - Revenue for the three months ended September 30, 2025, was $246.2 million, a decrease of 10% compared to $273.6 million for the same period in 2024[40] User Metrics - Total paying users decreased by 16.0% to 3.6 million, compared to 4.3 million in Q3 2024[7] - Total average revenue per paying user (ARPPU) increased by 6.9% to $22.64, compared to $21.17 in Q3 2024[7] Earnings and Profitability - Net earnings were $51.6 million, or 21.0% of revenue, compared to a net loss of $849.3 million in Q3 2024[7] - Operating earnings for the three months ended September 30, 2025, were $63.7 million, compared to an operating loss of $838.2 million in the same period of 2024[40] - Net earnings attributable to Bumble Inc. shareholders for the three months ended September 30, 2025, were $37.3 million, a significant improvement from a loss of $613.2 million in the same period of 2024[40] Cash Flow and Assets - Cash and cash equivalents increased to $307.9 million as of September 30, 2025, up from $204.3 million as of December 31, 2024[38] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $191,300, an increase from $128,839 in the same period of 2024[44] - The company experienced a net increase in cash and cash equivalents of $45,573 for the three months ended September 30, 2025[42] Expenses - Selling and marketing expenses for the three months ended September 30, 2025, were $32.8 million, a decrease of 48% from $63.5 million in the same period of 2024[40] - General and administrative expenses increased to $46.3 million for the three months ended September 30, 2025, compared to $33.3 million in the same period of 2024[40] - Non-GAAP selling and marketing expense for Q3 2025 was $31,678,000, down 0.6% from $63,037,000 in Q3 2024[47] Impairment and Liabilities - The company reported an impairment loss of $408.5 million for the nine months ended September 30, 2025, compared to an impairment loss of $892.2 million for the same period in 2024[40] - Total liabilities decreased to $1.16 billion as of September 30, 2025, compared to $1.18 billion as of December 31, 2024[38] - The company has substantial indebtedness, with long-term debt net of $583.6 million as of September 30, 2025[38] Future Outlook - The company anticipates fourth quarter revenue in the range of $216 million to $224 million, including Bumble App revenue of $176 million to $182 million[14] - The transaction is expected to enhance cash flow and provide strategic flexibility for future growth initiatives[15] - The company is focusing on improving member base quality and embedding innovation and AI into its platform[2]

Financial Performance - Net sales for the three months ended September 27, 2025, increased to $17,075.9 million, up 10.8% from $15,415.5 million for the same period in 2024[19] - Gross profit for the same period rose to $2,016.6 million, representing a 14.3% increase compared to $1,764.2 million in the prior year[19] - Operating profit was $224.7 million, slightly up from $215.3 million, indicating a growth of 6.5% year-over-year[19] - Net income decreased to $93.6 million, down 13.3% from $108.0 million in the previous year[19] - Adjusted EBITDA rose by $68.2 million, or 16.6%, to $480.1 million for the first three months of fiscal 2026 compared to $411.9 million in the prior year[115] - Basic earnings per common share for the three months ended September 27, 2025, was $0.60, down from $0.70 for the same period in 2024[84] Assets and Liabilities - Total assets as of September 27, 2025, were $18,351.8 million, an increase from $17,881.2 million as of June 28, 2025[17] - Total liabilities increased to $13,778.3 million from $13,408.8 million, reflecting a rise of 2.7%[17] - The company reported long-term debt of $5,636.8 million as of September 27, 2025, an increase from $5,388.8 million as of June 28, 2025[3] - The company’s total shareholders' equity increased to $4,573.5 million as of September 27, 2025, up from $4,472.4 million[17] - As of September 27, 2025, total lease liabilities amounted to $2,664.9 million, with operating lease obligations at $998.1 million and finance lease obligations at $1,666.8 million[66] Cash Flow and Investments - Cash and restricted cash at the end of the period was $46.4 million, down from $50.3 million a year earlier[26] - The company reported a net cash used in operating activities of $145.2 million for the three months ended September 27, 2025, compared to a net cash provided of $53.5 million in the same period last year[26] - Cash used in investing activities totaled $78.0 million in the first three months of fiscal 2026, significantly lower than $669.8 million in the same period of fiscal 2025[150] - The company had total purchase obligations of $324.6 million as of September 27, 2025, including $198.3 million for capital projects[145] Debt and Interest - Interest expense for the quarter was $104.4 million, significantly higher than $66.8 million in the prior year, marking a 56.3% increase[19] - Interest expense rose by $37.6 million, or 56.3%, to $104.4 million, primarily due to increased average borrowings[123] - The average interest rate on borrowings under the ABL Facility was 5.78% as of September 27, 2025, slightly down from 5.86% as of June 28, 2025[5] Acquisitions - The company acquired Cheney Bros., Inc. for $2.0 billion, financed through borrowings under its asset-based revolving credit facility[4] - The Cheney Brothers Acquisition contributed $852.5 million to net sales in the first three months of fiscal 2026[127] Taxation - The Company's effective tax rate was 23.0% for the three months ended September 27, 2025, compared to 26.5% for the same period in 2024[71] - The effective tax rate for the first three months of fiscal 2026 was 23.0%, down from 26.5% in the prior year, due to increased deductible items and tax credits[124] Segments Performance - The Foodservice segment reported an Adjusted EBITDA of $324.4 million for Q3 2025, up from $274.6 million in Q3 2024, indicating a growth of about 18.1%[96] - The Convenience segment's Adjusted EBITDA increased to $121.0 million in Q3 2025 from $105.3 million in Q3 2024, marking a growth of approximately 14.9%[96] - The Specialty segment's Adjusted EBITDA rose to $94.0 million for Q3 2025, compared to $83.2 million in Q3 2024, representing an increase of about 13.5%[96] Operational Insights - The company continues to monitor macroeconomic factors, including inflationary pressures and supply chain disruptions, which could impact future sales and profitability[103] - The company serves both independent and multi-unit customers in the restaurant industry, distributing a broad range of food and food-related products across North America[8] - The company emphasizes cross-segment collaboration to enhance customer service and operational efficiency, leveraging its diverse segments[101] Shareholder Actions - The company authorized a share repurchase program for up to $500 million, replacing a previous $300 million program, with $500 million remaining available for repurchases as of September 27, 2025[2] - The company repurchased a total of 247,843 shares of common stock during the first quarter of fiscal 2026 at an average price of $100.30 per share[171] Compliance and Controls - There were no material changes in the company's internal control over financial reporting during the fiscal quarter ended September 27, 2025[165] - The company's disclosure controls and procedures were evaluated and deemed effective at a reasonable assurance level as of the end of the reporting period[164] - The company is subject to various legal proceedings but believes that adequate provisions have been made to avoid material adverse effects on its financial position[168]

Investment Income - Total investment income for Q3 2025 was $31.7 million, down from $37.3 million in Q3 2024, representing a decrease of approximately 15.1%[4] - Net investment income for Q3 2025 was $13.6 million, or $0.43 per share, compared to $15.7 million, or $0.48 per share in the same period last year, reflecting a decline of 13.4% in income per share[4] - Net investment income for the three months ended September 30, 2025, was $13,641,070, compared to $15,728,731 for the same period in 2024, a decrease of approximately 13.3%[25] Asset and Liability Overview - As of September 30, 2025, total assets were $1.3 billion, with total net assets of $490.4 million[4] - Total assets as of September 30, 2025, were $1,281,521,793, a decrease from $1,431,042,759 as of December 31, 2024, representing a decline of approximately 10.5%[21] - Total liabilities decreased to $791,076,580 from $893,197,790, reflecting a reduction of about 11.4%[21] - The debt-to-equity ratio as of September 30, 2025, was 1.53x, slightly up from 1.51x as of June 30, 2025[4] Investment Performance - Total net realized and unrealized losses for Q3 2025 were $10.3 million, compared to losses of $8.2 million in Q3 2024, marking an increase in losses of approximately 25.6%[4] - The company reported a net increase in net assets resulting from operations of $3,353,424 for the three months ended September 30, 2025, down from $7,555,185 in 2024, a decline of about 55.7%[25] - Gross investments for the three months ended September 30, 2025, totaled $138,665,631, significantly higher than $66,239,961 in the same period of 2024, an increase of approximately 109.4%[28] - Total new investments were negative at $(17,361,796) for the three months ended September 30, 2025, compared to $(16,582,259) in 2024, indicating a continued trend of divestment[28] Dividend Information - The company declared a fourth quarter regular base dividend of $0.36 per share, payable on January 14, 2026, to shareholders of record as of December 29, 2025[9] Portfolio Composition - The portfolio consisted of 86.10% first lien senior secured debt investments, with a total fair value of investments at approximately $1.2 billion[6] - The weighted average total yield to maturity of debt and income-producing securities at fair value was 10.07% as of September 30, 2025[7] - The principal amount of new investments funded in Q3 2025 was $138.7 million, with $156.0 million in aggregate principal amount in sales and repayments[7] Commitment and Interest Rates - The company had an aggregate of $16.4 million in unfunded commitments to provide debt financing to its portfolio companies as of September 30, 2025, down from $21.6 million as of December 31, 2024[23] - The weighted average interest rate of new investment commitments was 8.48% for the three months ended September 30, 2025, down from 9.07% in 2024[28] - The average new investment commitment amount increased to $4,760,375 for the three months ended September 30, 2025, compared to $2,717,288 in 2024, an increase of approximately 75.5%[28] Net Asset Value - Net asset value (NAV) per share decreased to $15.39 as of September 30, 2025, from $15.68 as of June 30, 2025, indicating a decline of 1.85%[4] - The net asset value per common share decreased to $15.39 as of September 30, 2025, from $16.50 as of December 31, 2024, a decline of approximately 6.7%[21]