Contact: Linsey Wisniewski Corporate Communications 667-218-7700 Emily Duncan Investor Relations 833-447-2783 CONSTELLATION REPORTS SECOND QUARTER 2025 RESULTS Earnings Release Highlights Exhibit 99.1 News Release Baltimore (Aug 7, 2025) — Constellation Energy Corporation (Nasdaq: CEG) today reported its financial results for the second quarter of 2025. "With increasing demand for electricity to power American families and businesses, AI, electric vehicles and industrial growth, we're doing our part to ensu ...

[Second Quarter 2025 Performance and Outlook](index=1&type=section&id=Second%20Quarter%202025%20Performance%20and%20Outlook) [Performance Highlights](index=1&type=section&id=Performance%20Highlights) The company reported solid Q2 2025 results with increased RevPAR and gross fees, despite a net loss and a slight decrease in Adjusted EBITDA Q2 2025 Key Financial & Operational Metrics | Metric | Q2 2025 Result | vs. Q2 2024 | | :--- | :--- | :--- | | Comparable System-wide RevPAR | +1.6% | - | | Net Rooms Growth | 11.8% | - | | Net Income (attributable to Hyatt) | $(3) million | - | | Diluted EPS | $(0.03) | - | | Adjusted Net Income | $66 million | - | | Adjusted Diluted EPS | $0.68 | - | | Gross Fees | $301 million | +9.5% | | Adjusted EBITDA | $303 million | -1.1% | | Pipeline (executed contracts) | ~140,000 rooms | +8% | - Management emphasized solid performance with **strong fee contribution** despite a lower RevPAR growth environment and is optimistic about improving performance in Q4 and beyond[2](index=2&type=chunk) - The acquisition and planned sale of the Playa real estate portfolio reinforces Hyatt's commitment to an **asset-light business model**[2](index=2&type=chunk) [Operational Commentary](index=2&type=section&id=Operational%20Commentary) The company advanced its asset-light strategy by completing the Playa Hotels acquisition and agreeing to sell the associated real estate portfolio - Key operational highlights include **10% gross fee growth**, strong luxury segment RevPAR, and the launch of the new "Unscripted by Hyatt" brand[6](index=6&type=chunk) - The company completed the **$2.6 billion Playa Hotels acquisition** and subsequently entered an agreement to sell the real estate portfolio for **$2.0 billion**[6](index=6&type=chunk) - As of June 30, 2025, total debt stood at **$6.0 billion** with **$2.4 billion in liquidity**, and a quarterly dividend of $0.15 per share was declared[6](index=6&type=chunk) [2025 Full Year Outlook](index=3&type=section&id=2025%20Full%20Year%20Outlook) Hyatt projects full-year RevPAR growth of 1-3% and Adjusted EBITDA of $1,155M-$1,215M, including the impact of the Playa acquisition 2025 Full Year Outlook (Excluding Playa Impact) | Metric | 2025 Outlook | Growth vs 2024 | | :--- | :--- | :--- | | System-Wide Hotels RevPAR Growth | 1% to 3% | - | | Net Rooms Growth | 6% to 7% | - | | Net Income | $135M - $165M | (90)% to (87)% | | Adjusted EBITDA | $1,085M - $1,130M | 7% to 11% (adjusted) | | Adjusted Free Cash Flow | $450M - $500M | (17)% to (7)% | | Capital Returns to Shareholders | Approx. $300M | - | 2025 Full Year Outlook (Consolidated, Including Playa Impact) | Metric | Consolidated Outlook | | :--- | :--- | | Net Rooms Growth | 6.7% to 7.7% | | Net Income | $22M - $53M | | Adjusted EBITDA | $1,155M - $1,215M | | Adjusted Free Cash Flow | $435M - $485M | - The projected decline in Net Income is primarily due to **significant gains on real estate sales recognized in 2024**[10](index=10&type=chunk) - Adjusted EBITDA growth is expected to be strong after adjusting for the impact of hotels sold in 2024[10](index=10&type=chunk) - The company reinstated its outlook for capital returns, targeting approximately **$300 million** via dividends and share repurchases[10](index=10&type=chunk) [Financial Information (Schedules)](index=7&type=section&id=Financial%20Information%20(Schedules)) [Condensed Consolidated Statements of Income (Loss)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) The company reported a Q2 2025 net loss of $3 million, a significant decrease from a $359 million net income in Q2 2024 due to prior-year asset sale gains Q2 2025 Income Statement Highlights (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenues | $1,808 | $1,703 | | Gross Fees | $301 | $275 | | Transaction and integration costs | $82 | $10 | | Gains (losses) on sales of real estate | $(2) | $350 | | Net income (loss) attributable to Hyatt | $(3) | $359 | | Diluted EPS | $(0.03) | $3.46 | [Operating Statistics](index=9&type=section&id=Operating%20Statistics) System-wide RevPAR grew 1.6%, driven by strong performance in luxury brands and international markets, particularly the Middle East & Africa [By Geography](index=9&type=section&id=By%20Geography) Q2 2025 RevPAR Growth vs. 2024 (Constant $) | Region | RevPAR Growth | | :--- | :--- | | System-wide hotels | 1.6% | | United States | (0.1)% | | Americas (ex-US) | 0.5% | | Greater China | 2.1% | | Asia Pacific (ex-China) | 7.4% | | Europe | 2.5% | | Middle East & Africa | 14.0% | Q2 2025 All-Inclusive Net Package RevPAR Growth vs. 2024 (Reported $) | Region | Net Package RevPAR Growth | | :--- | :--- | | System-wide all-inclusive | 8.6% | | Americas (ex-US) | 6.0% | | Europe | 22.5% | [By Brand](index=10&type=section&id=By%20Brand) Q2 2025 RevPAR Growth vs. 2024 by Chain Scale (Constant $) | Chain Scale | RevPAR Growth | | :--- | :--- | | Composite Luxury | 5.1% | | Composite Upper Upscale | 0.6% | | Composite Upscale & Upper Midscale | (1.2)% | - Within the luxury segment, **Park Hyatt was a standout performer with 9.0% RevPAR growth**[26](index=26&type=chunk) - In the all-inclusive category, **Alua Hotels & Resorts saw significant Net Package RevPAR growth of 20.0%**[26](index=26&type=chunk) [Properties and Rooms](index=11&type=section&id=Properties%20and%20Rooms) As of June 30, 2025, Hyatt's portfolio comprised 1,487 properties and 363,790 rooms, with the largest concentration in the United States [By Geography](index=11&type=section&id=By%20Geography) Total Properties and Rooms by Geography (as of June 30, 2025) | Geography | Properties | Rooms | | :--- | :--- | :--- | | United States | 729 | 167,446 | | Americas (ex-US) | 86 | 18,376 | | Greater China | 195 | 46,834 | | Asia Pacific (ex-China) | 142 | 35,033 | | Europe | 129 | 25,153 | | Middle East & Africa | 48 | 11,304 | | **System-wide Hotels Total** | **1,329** | **304,146** | | **System-wide All-Inclusive** | **158** | **59,644** | | **System-wide Total** | **1,487** | **363,790** | [By Brand](index=12&type=section&id=By%20Brand) Top 5 Brands by Room Count (as of June 30, 2025) | Brand | Properties | Rooms | | :--- | :--- | :--- | | Hyatt Regency | 237 | 96,610 | | Hyatt Place | 442 | 65,114 | | Grand Hyatt | 67 | 34,731 | | Hyatt House | 141 | 19,849 | | Dreams Resorts & Spas | 34 | 14,641 | [Reconciliations of Non-GAAP Financial Measures](index=13&type=section&id=Reconciliations%20of%20Non-GAAP%20Financial%20Measures) This section details adjustments from GAAP to non-GAAP metrics like Adjusted EBITDA and Adjusted Net Income to clarify underlying performance [Net Income to Adjusted EBITDA](index=13&type=section&id=Net%20Income%20to%20Adjusted%20EBITDA) Q2 2025 Reconciliation of Net Income to Adjusted EBITDA (in millions) | Description | Amount | | :--- | :--- | | **Net income (loss) attributable to Hyatt** | **$ (3)** | | Depreciation and amortization | $ 82 | | Transaction and integration costs | $ 82 | | Interest expense | $ 74 | | Provision for income taxes | $ 42 | | Other adjustments | $ 26 | | **Adjusted EBITDA** | **$ 303** | - For Q2 2025, the **Management and franchising segment was the largest contributor to Adjusted EBITDA with $238 million**[36](index=36&type=chunk) - The Playa Hotels Acquisition contributed **$14 million to the consolidated Adjusted EBITDA** in Q2 2025 for the period of Hyatt's ownership[37](index=37&type=chunk) [G&A to Adjusted G&A Expenses](index=15&type=section&id=G&A%20to%20Adjusted%20G&A%20Expenses) Q2 2025 Reconciliation of G&A to Adjusted G&A (in millions) | Description | Amount | | :--- | :--- | | **G&A expenses (GAAP)** | **$ 152** | | Less: Rabbi trust impact | $ (30) | | Less: Stock-based compensation expense | $ (12) | | **Adjusted G&A Expenses** | **$ 110** | [Net Income and EPS to Adjusted Net Income and Adjusted Diluted EPS](index=16&type=section&id=Net%20Income%20and%20EPS%20to%20Adjusted%20Net%20Income%20and%20Adjusted%20Diluted%20EPS) Q2 2025 Reconciliation of Net Income & EPS to Adjusted Figures | Metric | GAAP | After-Tax Special Items | Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | **Net Income (in millions)** | **$ (3)** | $ 69 | **$ 66** | | **Diluted EPS** | **$ (0.03)** | $ 0.71 | **$ 0.68** | - The largest pre-tax special item in Q2 2025 was **$82 million in transaction and integration costs**, primarily related to the Playa Hotels Acquisition[43](index=43&type=chunk) [Adjustments from Sold Assets](index=17&type=section&id=Adjustments%20from%20Sold%20Assets) This schedule quantifies the financial impact of assets sold in 2024, which contributed $80 million in Adjusted EBITDA for that year Full Year 2024 Impact of Sold Assets (in millions) | Description | Full Year 2024 | | :--- | :--- | | Adjustment to segment revenues | $ (259) | | Adjustment to segment Adjusted EBITDA | $ (80) | [Outlook Reconciliations](index=18&type=section&id=Outlook%20Reconciliations) This section provides reconciliations for the 2025 outlook, bridging forecasted GAAP Net Income to non-GAAP metrics like Adjusted EBITDA [Non-GAAP Financial Measures Outlook](index=18&type=section&id=Non-GAAP%20Financial%20Measures%20Outlook) FY 2025 Outlook Reconciliation: Net Income to Adjusted EBITDA (Consolidated, in millions) | Description | Low End | High End | | :--- | :--- | :--- | | **Net income (loss) attributable to Hyatt** | **$ 22** | **$ 53** | | Key Adjustments (Depreciation, Interest, etc.) | $ 901 | $ 910 | | Pro rata share of unconsolidated ventures' Adj. EBITDA | $ 52 | $ 62 | | **Adjusted EBITDA** | **$ 1,155** | **$ 1,215** | FY 2025 Outlook Reconciliation: Operating Cash Flow to Adjusted Free Cash Flow (Consolidated, in millions) | Description | Low End | High End | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$ 223** | **$ 293** | | Capital expenditures | $ (215) | $ (215) | | Cash taxes on asset sales | $ 117 | $ 117 | | Costs associated with Playa Hotels Acquisition | $ 310 | $ 290 | | **Adjusted Free Cash Flow** | **$ 435** | **$ 485** | [Playa Outlook by Quarter](index=19&type=section&id=Playa%20Outlook%20by%20Quarter) 2025 Playa Contribution to Adjusted EBITDA Outlook (in millions) | Quarter | Low End | High End | | :--- | :--- | :--- | | Q2 2025 (Actual) | $ 14 | $ 14 | | Q3 2025 | $ 17 | $ 21 | | Q4 2025 | $ 39 | $ 50 | | **Full Year 2025** | **$ 70** | **$ 85** | [Other Information](index=5&type=section&id=Other%20Information) [Conference Call Information](index=5&type=section&id=Conference%20Call%20Information) Hyatt will host an investor conference call on August 7, 2025, at 9:00 a.m. CT to discuss the Q2 results - An investor conference call to discuss Q2 2025 results is scheduled for the morning of **August 7, 2025, at 9:00 a.m. CT**[12](index=12&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section outlines potential risks and uncertainties that could cause actual results to differ from the forward-looking statements in the report - The report contains forward-looking statements concerning the company's plans, outlook, and financial performance, which are subject to various risks and uncertainties[15](index=15&type=chunk) - Key risks highlighted include the successful completion of the **Playa Real Estate Transaction**, general economic uncertainty, and supply chain constraints[15](index=15&type=chunk) [Definitions](index=20&type=section&id=Definitions) This section defines key non-GAAP financial measures and operating metrics used throughout the report, such as Adjusted EBITDA and RevPAR - **Adjusted EBITDA** is a key non-GAAP measure used to reflect core operational performance by excluding items like interest, taxes, and transaction costs[67](index=67&type=chunk)[73](index=73&type=chunk) - **Adjusted Net Income** and **Adjusted Diluted EPS** are non-GAAP measures that exclude special items to allow for better period-over-period comparisons[78](index=78&type=chunk) - Key operating metrics are defined, including **RevPAR** (Revenue Per Available Room) and **Net Package RevPAR** for all-inclusive resorts[88](index=88&type=chunk)[92](index=92&type=chunk)

PART I - FINANCIAL INFORMATION This section presents Immunic, Inc.'s unaudited condensed consolidated financial statements, management's discussion, market risk, and controls [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Immunic, Inc.'s unaudited condensed consolidated financial statements for June 30, 2025, and December 31, 2024, including balance sheets, statements of operations, comprehensive loss, stockholders' equity, and cash flows, are presented with detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) A summary of Immunic, Inc.'s financial position at June 30, 2025, and December 31, 2024, is presented | Metric | June 30, 2025 (Unaudited) (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :--------------------------------------- | :------------------------------- | | Cash and cash equivalents | $55,310 | $35,668 | | Total current assets | $59,842 | $39,332 | | Total assets | $61,429 | $40,868 | | Total current liabilities | $27,313 | $22,175 | | Total liabilities | $27,518 | $22,439 | | Total stockholders' equity | $33,911 | $18,429 | - Cash and cash equivalents increased by **$19,642 thousand** from December 31, 2024, to June 30, 2025[8](index=8&type=chunk) - Total assets increased by **$20,561 thousand**, while total liabilities increased by **$5,079 thousand** over the six-month period[8](index=8&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Immunic, Inc.'s financial performance, including revenues and expenses, for the periods ended June 30, 2025, and 2024, is detailed | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Research and development | $21,369 | $18,323 | $42,902 | $37,059 | | General and administrative | $5,714 | $4,491 | $11,006 | $9,636 | | Total operating expenses | $27,083 | $22,814 | $53,908 | $46,695 | | Loss from operations | $(27,083) | $(22,814) | $(53,908) | $(46,695) | | Net loss | $(26,820) | $(21,380) | $(52,293) | $(50,964) | | Net loss per share, basic and diluted | $(0.20) | $(0.21) | $(0.45) | $(0.51) | - Net loss increased by **$5,440 thousand (25%)** for the three months ended June 30, 2025, compared to the same period in 2024, primarily due to higher operating expenses and lower interest income[11](index=11&type=chunk) - Research and development expenses increased by **$3,046 thousand (17%)** for the three months ended June 30, 2025, driven by external development costs for vidofludimus calcium programs and personnel expenses[11](index=11&type=chunk)[196](index=196&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Immunic, Inc.'s comprehensive loss, including net loss and other comprehensive income/loss, is presented | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(26,820) | $(21,380) | $(52,293) | $(50,964) | | Foreign currency translation | $(1,399) | $(505) | $(1,684) | $23 | | Total comprehensive loss | $(28,219) | $(21,885) | $(53,977) | $(50,941) | - Total comprehensive loss increased to **$(53,977) thousand** for the six months ended June 30, 2025, from **$(50,941) thousand** in the prior year, primarily due to a higher net loss and negative foreign currency translation adjustments[14](index=14&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Changes in Immunic, Inc.'s stockholders' equity for the six months ended June 30, 2025, are summarized | Metric (in thousands) | Balance at January 1, 2025 | Balance at June 30, 2025 | | :-------------------- | :------------------------- | :----------------------- | | Common Stock Amount | $8 | $9 | | Additional Paid-In Capital | $525,611 | $595,069 | | Accumulated Other Comprehensive Income | $4,209 | $2,525 | | Accumulated Deficit | $(511,399) | $(563,692) | | Total Stockholders' Equity | $18,429 | $33,911 | - Total stockholders' equity increased significantly from **$18,429 thousand** at January 1, 2025, to **$33,911 thousand** at June 30, 2025, primarily driven by proceeds from the May 2025 Offering (**$60,661 thousand**) and April 2025 Offering (**$4,734 thousand**), despite a net loss of **$(52,293) thousand**[16](index=16&type=chunk) - The accumulated deficit grew from **$(511,399) thousand** to **$(563,692) thousand** during the six-month period due to ongoing operating losses[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Immunic, Inc.'s cash inflows and outflows from operating, investing, and financing activities are presented | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(46,385) | $(41,008) | | Net cash used in investing activities | $(83) | $(211) | | Net cash provided by financing activities | $65,518 | $74,464 | | Net change in cash and cash equivalents | $19,642 | $33,024 | | Cash and cash equivalents, end of period | $55,310 | $79,698 | - Operating activities used **$46,385 thousand** in cash for the six months ended June 30, 2025, an increase from **$41,008 thousand** in the prior year, primarily due to the net loss[21](index=21&type=chunk)[233](index=233&type=chunk) - Financing activities provided **$65,518 thousand** in cash for the six months ended June 30, 2025, mainly from the April 2025 and May 2025 equity offerings[21](index=21&type=chunk)[236](index=236&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes provide additional information on Immunic, Inc.'s business, accounting policies, and financial position [1. Description of Business and Basis of Financial Statements](index=9&type=section&id=1.%20Description%20of%20Business%20and%20Basis%20of%20Financial%20Statements) Immunic, Inc.'s business, operations, and the basis of its financial statement preparation are described - Immunic, Inc. is a biotechnology company focused on developing oral immunology therapies for chronic inflammatory and autoimmune diseases, with **approximately 90 employees** as of July 31, 2025[24](index=24&type=chunk)[145](index=145&type=chunk) - The company has an accumulated deficit of **approximately $563.7 million** as of June 30, 2025, and has never been profitable, raising substantial doubt about its ability to continue as a going concern without additional capital[26](index=26&type=chunk)[28](index=28&type=chunk)[158](index=158&type=chunk)[160](index=160&type=chunk) - The financial statements are prepared in conformity with U.S. GAAP and include Immunic and its wholly-owned subsidiaries, Immunic AG and Immunic Australia Pty Ltd., managed as a single reportable segment[29](index=29&type=chunk) [2. Summary of Significant Accounting Policies](index=10&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Key accounting policies used in preparing Immunic, Inc.'s financial statements are outlined - The company's reporting currency is U.S. dollars, with functional currencies of Euro for Immunic AG and Australian dollar for Immunic Australia Pty Ltd., with translation gains/losses recorded in accumulated other comprehensive income (loss)[32](index=32&type=chunk) - Research and development expenses, primarily for vidofludimus calcium and IMU-856 programs, are expensed as incurred[43](index=43&type=chunk)[44](index=44&type=chunk) - Stock-based compensation is measured at grant-date fair value for equity awards and recognized over the service period, using the Black-Scholes-Merton option-pricing model[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) [3. Balance Sheet Details](index=15&type=section&id=3.%20Balance%20Sheet%20Details) Detailed information on specific balance sheet accounts is provided | Account (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | Prepaid clinical and related costs | $2,467 | $1,871 | | Accounts payable - Clinical costs | $7,015 | $7,561 | | Accrued clinical and related costs | $16,227 | $12,456 | | Accrued compensation | $1,457 | $354 | - Prepaid clinical and related costs increased by **$596 thousand**, while accrued clinical and related costs increased by **$3,771 thousand** from December 31, 2024, to June 30, 2025[67](index=67&type=chunk)[69](index=69&type=chunk) [4. Leases](index=16&type=section&id=4.%20Leases) Information regarding Immunic, Inc.'s operating lease arrangements and obligations is presented - The company leases office and laboratory space in New York City and Germany, with lease terms up to **60 months**[71](index=71&type=chunk) | Year | Operating Lease Obligation (in thousands) | | :--- | :---------------------------------------- | | 2025 | $415 | | 2026 | $444 | | 2027 | $85 | | 2028 | $82 | | Total | $1,026 | | Interest | $(47) | | Present value of obligation | $979 | - Operating lease costs were **$312 thousand** for the three months ended June 30, 2025, and **$591 thousand** for the six months ended June 30, 2025[73](index=73&type=chunk) [5. Fair Value](index=17&type=section&id=5.%20Fair%20Value) Details on the fair value measurements of Immunic, Inc.'s financial assets and liabilities are provided | Asset (in thousands) | Fair Value at June 30, 2025 | Fair Value at December 31, 2024 | | :------------------- | :-------------------------- | :------------------------------ | | Money market funds | $47,190 | $14,751 | - Money market funds, classified as Level 1 assets, increased significantly from **$14,751 thousand** at December 31, 2024, to **$47,190 thousand** at June 30, 2025[75](index=75&type=chunk) - The company had no Level 2 or Level 3 assets or liabilities for the periods presented, except for tranche rights in Q1 2024 which were reclassified to equity[39](index=39&type=chunk)[78](index=78&type=chunk) [6. Common Stock](index=18&type=section&id=6.%20Common%20Stock) Information on Immunic, Inc.'s common stock, including recent offerings and Nasdaq compliance, is presented - The company completed an April 2025 Offering, issuing **5,666,667 shares** of common stock for gross proceeds of **approximately $5.1 million** and net proceeds of **$4.7 million**[85](index=85&type=chunk)[88](index=88&type=chunk) - A May 2025 Equity Offering involved the issuance of pre-funded warrants, Series A warrants, and Series B warrants, generating **approximately $65 million** in gross proceeds, with potential for an additional **$130 million** if warrants are fully exercised for cash[89](index=89&type=chunk)[92](index=92&type=chunk) - Immunic received a Nasdaq non-compliance notice on June 27, 2025, for its common stock trading **below $1.00** for **30 consecutive business days**, with a compliance period until December 24, 2025[102](index=102&type=chunk) [7. Stock-Based Compensation Plans](index=22&type=section&id=7.%20Stock-Based%20Compensation%20Plans) Details on Immunic, Inc.'s stock-based compensation plans and related expenses are provided - Total stock-based compensation expense for the six months ended June 30, 2025, was **$3,941 thousand**, a decrease from **$4,632 thousand** in the prior year[121](index=121&type=chunk) | Expense Category (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Research and development | $761 | $842 | $1,592 | $2,005 | | General and administrative | $1,138 | $1,040 | $2,349 | $2,627 | | Total | $1,899 | $1,882 | $3,941 | $4,632 | - As of June 30, 2025, there was **$15.6 million** in total unrecognized compensation expense related to the 2019 Plan, to be recognized over a weighted average period of **3.16 years**[121](index=121&type=chunk) [8. Related Party Transactions](index=25&type=section&id=8.%20Related%20Party%20Transactions) Information on transactions and agreements with Immunic, Inc.'s related parties is disclosed - The Executive Chairman Agreement with Duane Nash was extended to December 31, 2025, with his monthly base salary increasing to **$33,986** in 2025[127](index=127&type=chunk) [9. Commitments and Contingencies](index=25&type=section&id=9.%20Commitments%20and%20Contingencies) Immunic, Inc.'s contractual obligations, licensing agreements, and potential litigation are outlined - As of June 30, 2025, the company has non-cancelable contractual obligations of **approximately $2.1 million** related to its development programs for vidofludimus calcium and IMU-856, expected to be paid in 2025 and 2026[128](index=128&type=chunk)[239](index=239&type=chunk) - Immunic AG entered into a licensing agreement with Ludwig-Maximilians-University for new neuroinflammatory molecules, entitling the university to future development, regulatory, and sales milestone payments[130](index=130&type=chunk) - The company is not currently a party to any material litigation but acknowledges the industry's susceptibility to claims regarding intellectual property and product liability[131](index=131&type=chunk)[250](index=250&type=chunk) [10. Segment Disclosures](index=26&type=section&id=10.%20Segment%20Disclosures) Information on Immunic, Inc.'s operating segments and how performance is assessed is provided - The company operates as a single reportable segment: life science, focused on developing clinical and preclinical product candidates[132](index=132&type=chunk) - The Chief Executive Officer, as the CODM, assesses performance based on net loss and allocates resources based on cash resources and the probability of success of R&D activities[133](index=133&type=chunk) | Operating Expenses (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Clinical product candidates | $35,491 | $29,882 | | Pre-clinical product candidates | $345 | $400 | | Employee costs- research and development | $4,761 | $3,881 | | Employee costs-general and administrative | $3,643 | $2,704 | | Non-cash stock compensation | $3,941 | $4,632 | | Total operating expenses | $53,908 | $46,695 | [11. Subsequent Events](index=28&type=section&id=11.%20Subsequent%20Events) Significant events occurring after the balance sheet date are disclosed - On July 7, 2025, the Board authorized grants of up to **35,000,000 Stock Appreciation Rights (SARs)** to employees and executive officers, with an exercise price of **$0.77**[137](index=137&type=chunk) - These SARs are intended to be settled for common stock, pending stockholder approval to amend the 2019 Omnibus Equity Incentive Plan to provide sufficient shares[137](index=137&type=chunk) - SAR exercisability is contingent on various milestones, including the exercise of Series A and B warrants and the completion of the second and third tranches of the January 2024 private placement[138](index=138&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's perspective on the company's financial condition, operations, liquidity, and key business developments is provided [Forward-Looking Statements](index=28&type=section&id=Forward-Looking%20Statements) This section contains cautionary statements regarding Immunic, Inc.'s future expectations and potential risks - The report contains forward-looking statements regarding development programs, financial estimates, and capital resources, which are subject to risks and uncertainties[140](index=140&type=chunk)[141](index=141&type=chunk) - Investors are cautioned not to place undue reliance on these statements, as actual results may differ materially due to various factors, including clinical trial outcomes and funding availability[142](index=142&type=chunk)[144](index=144&type=chunk) [Overview](index=29&type=section&id=Overview) An overview of Immunic, Inc.'s biotechnology business, product candidates, and clinical trial status is provided - Immunic is a biotechnology company developing oral immunology therapies for chronic inflammatory and autoimmune diseases, with main operations in Germany and headquarters in New York City[145](index=145&type=chunk) - Key product candidates include vidofludimus calcium (IMU-838) in Phase 3 for relapsing multiple sclerosis (RMS) and Phase 2 for progressive MS (PMS) and ulcerative colitis (UC); IMU-856 for gastrointestinal diseases; and IMU-381 for gastrointestinal diseases in preclinical testing[146](index=146&type=chunk)[147](index=147&type=chunk)[153](index=153&type=chunk) - Enrollment for both Phase 3 ENSURE trials of vidofludimus calcium in RMS was completed in May 2025, with top-line data expected by the end of 2026[148](index=148&type=chunk) [Strategy](index=31&type=section&id=Strategy) Immunic, Inc.'s strategic focus on developing immunology therapies and key initiatives are outlined - The company's strategy focuses on developing new molecules for immunological targets, leveraging R&D infrastructure in Germany and Australia for efficient development in high unmet need indications[157](index=157&type=chunk) - Strategic initiatives include executing Phase 3 ENSURE trials, analyzing Phase 2 CALLIPER data, advancing IMU-856, continuing preclinical research, preparing for commercial launch, and evaluating strategic collaborations[161](index=161&type=chunk) [Financial Condition, Liquidity and Going Concern](index=31&type=section&id=Financial%20Condition,%20Liquidity%20and%20Going%20Concern) Immunic, Inc.'s financial health, capital resources, and ability to continue as a going concern are discussed - Immunic has no product revenue, has never been profitable, and incurred an accumulated deficit of **approximately $563.7 million** as of June 30, 2025[158](index=158&type=chunk) - The company expects significant and increasing operating losses, and its cash and cash equivalents of **$55.3 million** as of June 30, 2025, are insufficient to fund operations for at least **twelve months** without raising additional capital, raising substantial doubt about its going concern ability[159](index=159&type=chunk)[160](index=160&type=chunk) [Key Status Updates](index=31&type=section&id=Key%20Status%20Updates) Important updates on Immunic, Inc.'s clinical trials and product candidate development are presented - IMU-856 demonstrated a dose-dependent increase of endogenous GLP-1 levels in celiac disease patients and reduced body weight gain in preclinical testing, suggesting potential for weight management[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) - Positive data from the Phase 2 CALLIPER trial of vidofludimus calcium in PMS showed a **30% reduction** in 24-week confirmed disability worsening (24wCDW) in PPMS patients and a **20% reduction** in thalamic brain volume loss[164](index=164&type=chunk)[165](index=165&type=chunk) - Long-term open-label extension data from the Phase 2 EMPhASIS trial in RRMS showed **92.3% of patients** remained free of 12-week CDW at week 144, with a favorable safety profile over **5.5 years**[170](index=170&type=chunk) [Components of Results of Operations](index=35&type=section&id=Components%20of%20Results%20of%20Operations) An explanation of the key components contributing to Immunic, Inc.'s financial results is provided - The company has not generated product sales revenue and does not expect to in the foreseeable future, relying on successful development and regulatory approval of product candidates[186](index=186&type=chunk) - Research and development expenses, totaling **approximately $421.2 million** through June 30, 2025, are expensed as incurred and are expected to increase due to ongoing clinical trials and inflationary pressures[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk) - Other income (expense) includes deal costs from the January 2024 Financing, R&D tax incentives from Australia, and a German Government R&D grant[195](index=195&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) A detailed analysis of Immunic, Inc.'s financial performance for the reported periods is presented | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Research and development | $21,369 | $18,323 | $3,046 | 17% | | General and administrative | $5,714 | $4,491 | $1,223 | 27% | | Total operating expenses | $27,083 | $22,814 | $4,269 | 19% | | Net loss | $(26,820) | $(21,380) | $(5,440) | 25% | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Research and development | $42,902 | $37,059 | $5,843 | 16% | | General and administrative | $11,006 | $9,636 | $1,370 | 14% | | Total operating expenses | $53,908 | $46,695 | $7,213 | 15% | | Net loss | $(52,293) | $(50,964) | $(1,329) | 3% | - Interest income decreased by **$0.8 million (76%)** for the three months and **$1.8 million (81%)** for the six months ended June 30, 2025, due to a lower average cash balance[197](index=197&type=chunk)[201](index=201&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Immunic, Inc.'s cash position, capital-raising activities, and funding needs are discussed - As of June 30, 2025, Immunic had **$55.3 million** in cash and cash equivalents, which is not adequate to fund operations for at least **twelve months** without additional capital[206](index=206&type=chunk)[231](index=231&type=chunk) - The company raised **approximately $4.7 million** net from the April 2025 Offering and **$60.7 million** net from the May 2025 Equity Offering[215](index=215&type=chunk)[220](index=220&type=chunk) - The January 2024 Financing provided **$80 million** in gross proceeds from the first tranche, with potential for an additional **$160 million** from conditional second and third tranches[223](index=223&type=chunk)[226](index=226&type=chunk) [Off-Balance Sheet Arrangements](index=43&type=section&id=Off-Balance%20Sheet%20Arrangements) Information on Immunic, Inc.'s off-balance sheet arrangements is disclosed - As of June 30, 2025, the company has not entered into any off-balance sheet arrangements or relationships with unconsolidated entities[237](index=237&type=chunk) [Other Commitments and Obligations](index=43&type=section&id=Other%20Commitments%20and%20Obligations) Immunic, Inc.'s additional contractual commitments and obligations are detailed - The company has non-cancelable contractual obligations of **approximately $2.1 million** for development programs, expected to be paid in 2025 and 2026[239](index=239&type=chunk) - Obligations under the Daiichi Sankyo and Ludwig-Maximilians-University agreements include potential future development, regulatory, and sales milestone payments[238](index=238&type=chunk) [Critical Accounting Policies and Estimates](index=43&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Key accounting policies and estimates requiring significant judgment in Immunic, Inc.'s financial reporting are identified - The company's financial statements require estimates and judgments, particularly for stock-based compensation and valuation of tranche rights, which are reviewed with the Audit Committee[240](index=240&type=chunk) [Recently Issued Accounting Standards](index=43&type=section&id=Recently%20Issued%20Accounting%20Standards) Updates on recently adopted and pending accounting standards relevant to Immunic, Inc. are provided - The company adopted ASU No. 2023-09 (Income Taxes) for the annual period starting January 1, 2025, to improve income tax disclosures[241](index=241&type=chunk) - ASU 2024-03 (Expense Disaggregation Disclosures) is effective for fiscal years beginning after December 15, 2026, and the company is evaluating its impact[65](index=65&type=chunk)[66](index=66&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's exposure to market risks, including interest rate sensitivity and foreign currency exchange risk, is discussed [Interest Rate Sensitivity](index=43&type=section&id=Interest%20Rate%20Sensitivity) Immunic, Inc.'s exposure to interest rate fluctuations and their potential financial impact are discussed - The company held **$55.3 million** in cash and cash equivalents as of June 30, 2025, primarily for working capital, and does not believe it has material exposure to changes in fair value from interest rate fluctuations due to the short-term nature of these investments[243](index=243&type=chunk) [Foreign Currency Exchange Risk](index=44&type=section&id=Foreign%20Currency%20Exchange%20Risk) Immunic, Inc.'s exposure to foreign currency exchange rate fluctuations and their potential impact are analyzed - The company is exposed to foreign currency exchange rate fluctuations, primarily between the U.S. dollar, Euro, and Australian dollar, due to R&D operations in Germany and Australia[244](index=244&type=chunk) - A hypothetical **10% adverse change** in foreign currency exchange rates could impact net current liabilities by **$1.4 million** and net loss by **approximately $4.1 million** for the six months ended June 30, 2025[246](index=246&type=chunk) - The company does not currently use foreign currency hedging transactions[244](index=244&type=chunk) [Effects of Inflation and Tariffs](index=44&type=section&id=Effects%20of%20Inflation%20and%20Tariffs) The impact of inflation and tariffs on Immunic, Inc.'s operations and financial results is assessed - The company has experienced a general increase in costs due to global inflation but does not believe it had a material impact on results of operations for the periods presented[247](index=247&type=chunk) - Currently enacted or proposed tariffs are not expected to have a material impact on operations[247](index=247&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) The evaluation of the company's disclosure controls and procedures and changes in internal control over financial reporting are detailed [Evaluation of Disclosure Controls and Procedures](index=44&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management's assessment of the effectiveness of Immunic, Inc.'s disclosure controls and procedures is presented - As of June 30, 2025, management, including the CEO and Principal Financial Officer, concluded that the company's disclosure controls and procedures were effective[248](index=248&type=chunk) [Changes in Internal Control over Financial Reporting](index=44&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) Any material changes in Immunic, Inc.'s internal control over financial reporting are reported - There were no material changes in internal control over financial reporting during the six months ended June 30, 2025[249](index=249&type=chunk) PART II - OTHER INFORMATION This section details legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material litigation but acknowledges inherent industry risks - The company is not currently a party to any litigation that it believes would materially affect its business, operating results, financial condition, or cash flows[250](index=250&type=chunk) - The biotechnology industry is characterized by frequent claims and litigation, including securities litigation, patent and intellectual property rights, and product liability claims[250](index=250&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) Key risks, particularly potential Nasdaq delisting due to non-compliance with the minimum bid price requirement, are highlighted - The company received a Nasdaq non-compliance notice on June 27, 2025, for its common stock trading **below $1.00** for **30 consecutive business days**, with a compliance period until December 24, 2025[252](index=252&type=chunk) - Failure to regain compliance could lead to delisting, negatively impacting stock price, liquidity, ability to raise capital, and potentially deterring investors[254](index=254&type=chunk) - The company is monitoring its stock price and evaluating options to regain compliance, including a potential reverse stock split[252](index=252&type=chunk)[254](index=254&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report for the period - There were no unregistered sales of equity securities or use of proceeds to report during the six months ended June 30, 2025[255](index=255&type=chunk) [Item 3. Defaults Upon Senior Securities](index=46&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there are no defaults upon senior securities to report - This item is not applicable, indicating no defaults upon senior securities[256](index=256&type=chunk) [Item 4. Mine Safety Disclosures](index=46&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the company - This item is not applicable, indicating no mine safety disclosures[257](index=257&type=chunk) [Item 5. Other Information](index=46&type=section&id=Item%205.%20Other%20Information) This section reports on Rule 10b5-1 trading arrangements by directors or Section 16 officers - No director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements during the six months ended June 30, 2025[258](index=258&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including underwriting agreements, certificates of incorporation, equity incentive plans, warrants, and employment agreements - Key exhibits include the Underwriting Agreement for the May 2025 Offering, Amended and Restated Certificate of Incorporation, 2019 Omnibus Equity Incentive Plan, various warrant forms (Pre-Funded, Placement Agent, Series A, Series B), and employment agreements[260](index=260&type=chunk)[261](index=261&type=chunk)

Part I Financial Information [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Starwood Property Trust, Inc.'s unaudited Condensed Consolidated Financial Statements as of June 30, 2025, including Balance Sheets, Statements of Operations, Comprehensive Income, Equity, and Cash Flows, along with detailed notes on accounting policies and financial activities Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$62,369,363** | **$62,556,497** | | Loans held-for-investment, net | $17,825,386 | $15,437,013 | | VIE assets, at fair value | $36,522,250 | $38,937,576 | | **Total Liabilities** | **$55,200,633** | **$55,363,025** | | Secured financing agreements, net | $13,540,389 | $11,151,557 | | VIE liabilities, at fair value | $34,902,530 | $37,288,545 | | **Total Starwood Property Trust, Inc. Stockholders' Equity** | **$6,422,210** | **$6,437,107** | Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $444,283 | $489,826 | $862,463 | $1,012,914 | | Net income | $134,696 | $77,725 | $250,797 | $237,585 | | Net income attributable to Starwood Property Trust, Inc. | $129,814 | $77,890 | $242,069 | $232,222 | | Diluted EPS | $0.38 | $0.24 | $0.71 | $0.73 | [Note 1: Business and Organization](index=11&type=section&id=Note%201%3A%20Business%20and%20Organization) Starwood Property Trust, Inc. is a REIT externally managed by Starwood Capital Group, primarily focused on originating, acquiring, financing, and managing mortgage loans and other real estate investments across the U.S., Europe, and Australia through its four reportable business segments - The company operates through four primary business segments[32](index=32&type=chunk)[35](index=35&type=chunk) - **Commercial and Residential Lending:** Originates and manages commercial first mortgages, non-agency residential mortgages, CMBS, RMBS, and other real estate debt[35](index=35&type=chunk) - **Infrastructure Lending:** Originates and manages infrastructure debt investments[35](index=35&type=chunk) - **Property Segment:** Acquires and manages equity interests in stabilized commercial real estate, including multifamily properties[35](index=35&type=chunk) - **Investing and Servicing Segment:** Includes a servicing business, an investment business in CMBS, a conduit loan origination business, and a commercial real estate asset investment business[35](index=35&type=chunk) [Note 2: Summary of Significant Accounting Policies](index=12&type=section&id=Note%202%3A%20Summary%20of%20Significant%20Accounting%20Policies) This note details the company's significant accounting policies, emphasizing VIE consolidation, fair value option application, the CECL model for credit losses, and revenue recognition methods for interest, servicing, and rental income - The company consolidates securitization VIEs where it is the primary beneficiary, resulting in the gross presentation of VIE assets and liabilities on the balance sheet, with assets restricted to settling the VIEs' obligations[37](index=37&type=chunk)[44](index=44&type=chunk)[49](index=49&type=chunk) - The fair value option is elected for certain financial assets and liabilities, including those of consolidated securitization VIEs and loans held-for-sale, to mitigate accounting mismatches and reflect short-term holding periods[59](index=59&type=chunk) - The company uses a Current Expected Credit Loss (CECL) model for estimating future credit losses on financial instruments measured at amortized cost, such as HFI loans and HTM debt securities, utilizing historical industry loss data from third-party services as a benchmark[66](index=66&type=chunk)[67](index=67&type=chunk) [Note 3: Acquisitions and Divestitures](index=19&type=section&id=Note%203%3A%20Acquisitions%20and%20Divestitures) During H1 2025, the company sold an office building for **$60.0 million** (net gain **$4.1 million**) and an equity interest for **$70.0 million** (gain **$51.4 million**), following the prior year's sale of a 16-property Master Lease Portfolio for **$387.1 million** (gain **$92.0 million**) - In H1 2025, sold an office building in Texas for **$60.0 million**, recognizing a net gain of **$4.1 million**[93](index=93&type=chunk) - In H1 2025, sold an equity interest for gross proceeds of **$70.0 million**, resulting in a gain of **$51.4 million**[94](index=94&type=chunk) - On February 29, 2024, sold the 16-property Master Lease Portfolio for a gross price of **$387.1 million**, recognizing a gain of **$92.0 million**[96](index=96&type=chunk) [Note 4: Loans](index=20&type=section&id=Note%204%3A%20Loans) As of June 30, 2025, total net loans increased to **$20.3 billion** from **$18.0 billion** at year-end 2024, driven by commercial and infrastructure loan growth, while the credit loss allowance decreased to **$417.3 million** from **$448.3 million**, with a net credit loss reversal of **$19.3 million** for H1 2025, and three properties foreclosed with a combined loan value of **$184.6 million** Loan Portfolio Summary (in thousands) | Loan Category | Carrying Value (June 30, 2025) | Carrying Value (Dec 31, 2024) | | :--- | :--- | :--- | | **Loans held-for-investment** | | | | Commercial loans | $15,168,392 | $13,331,876 | | Infrastructure first priority loans | $3,074,314 | $2,553,432 | | **Loans held-for-sale** | | | | Residential, fair value option | $2,323,276 | $2,394,624 | | Commercial, fair value option | $171,562 | $121,384 | | **Total gross loans** | **$20,737,544** | **$18,401,316** | | Credit loss allowances | ($417,320) | ($448,295) | | **Total net loans** | **$20,320,224** | **$17,953,021** | Credit Loss Allowance Activity - Funded Loans (in thousands) | Period | Beginning Balance | Credit loss (reversal) provision, net | Charge-offs | Ending Balance | | :--- | :--- | :--- | :--- | :--- | | **Six Months Ended June 30, 2025** | **$448,295** | **($13,750)** | **($17,225)** | **$417,320** | - During H1 2025, the company foreclosed on or obtained control of collateral for three loans with a total carrying value of **$184.6 million**, including properties in Boston, MA, Windermere, FL, and Conyers, GA[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) [Note 5: Investment Securities](index=25&type=section&id=Note%205%3A%20Investment%20Securities) The company's total investment securities portfolio slightly decreased to **$502.6 million** as of June 30, 2025, from **$533.3 million** at year-end 2024, comprising RMBS, CMBS, HTM debt securities, and an equity security, with a credit loss allowance on HTM debt securities increasing to **$25.5 million** Investment Securities Summary (in thousands) | Security Type | Carrying Value (June 30, 2025) | Carrying Value (Dec 31, 2024) | | :--- | :--- | :--- | | RMBS, available-for-sale | $91,363 | $93,806 | | RMBS, fair value option (pre-elimination) | $413,676 | $421,122 | | CMBS, fair value option (pre-elimination) | $1,202,438 | $1,225,024 | | HTM debt securities, net | $379,787 | $406,961 | | Equity security, fair value | $4,110 | $5,146 | | **Subtotal** | **$2,091,374** | **$2,152,059** | | VIE eliminations | ($1,588,776) | ($1,618,801) | | **Total investment securities** | **$502,598** | **$533,258** | - The credit loss allowance for HTM debt securities increased from **$24.5 million** at year-end 2024 to **$25.5 million** as of June 30, 2025[132](index=132&type=chunk) [Note 10: Secured Borrowings](index=33&type=section&id=Note%2010%3A%20Secured%20Borrowings) As of June 30, 2025, total secured borrowings increased to **$16.3 billion** from **$14.3 billion** at year-end 2024, primarily due to higher repurchase agreement balances for commercial loans, with **$1.3 billion** net increase in credit facility capacity and extended maturities during H1 2025 Secured Borrowings Summary (in thousands) | Facility Type | Outstanding Balance (June 30, 2025) | Outstanding Balance (Dec 31, 2024) | | :--- | :--- | :--- | | Repurchase Agreements | $10,281,675 | $8,336,385 | | Other Secured Financing | $3,344,297 | $2,899,744 | | **Total Secured Financing Agreements, net** | **$13,540,389** | **$11,151,557** | | **CLOs and SASB, net** | **$2,782,775** | **$3,196,426** | - During H1 2025, the company amended several commercial credit facilities, resulting in a net upsize of **$1.3 billion** and extending the weighted average maturity on amended facilities by 1.7 years[160](index=160&type=chunk) - In April 2025, the company refinanced a pool of infrastructure loans through a new **$500.0 million** CLO (Starwood 2025-SIF5), retaining **$86.5 million** of subordinated notes[172](index=172&type=chunk) [Note 11: Unsecured Senior Notes](index=38&type=section&id=Note%2011%3A%20Unsecured%20Senior%20Notes) The total carrying amount of unsecured senior notes increased to **$3.24 billion** as of June 30, 2025, from **$2.99 billion** at year-end 2024, driven by the issuance of **$500.0 million** of 6.50% Senior Notes due 2030, partially offset by the repayment of **$250.0 million** of 4.75% Senior Notes due 2025 Unsecured Senior Notes Outstanding (in thousands) | Note Series | Carrying Value (June 30, 2025) | Carrying Value (Dec 31, 2024) | | :--- | :--- | :--- | | 2027 Convertible Notes | $380,750 | $380,750 | | 2025 Senior Notes | — | $250,000 | | 2026 Senior Notes | $400,000 | $400,000 | | 2027 Senior Notes | $500,000 | $500,000 | | 2029 Senior Notes | $600,000 | $600,000 | | April 2030 Senior Notes | $400,000 | $400,000 | | July 2030 Senior Notes | $500,000 | $500,000 | | October 2030 Senior Notes | $500,000 | — | | **Total carrying amount** | **$3,242,251** | **$2,994,682** | - In April 2025, the company issued **$500.0 million** of 6.50% Senior Notes due 2030[187](index=187&type=chunk) - The remaining **$250.0 million** of the 4.75% Senior Notes due 2025 were repaid at maturity on March 15, 2025[188](index=188&type=chunk) [Note 16: Related-Party Transactions](index=45&type=section&id=Note%2016%3A%20Related-Party%20Transactions) The company incurred **$46.8 million** in base management fees and **$10.2 million** in incentive fees to its external Manager for H1 2025, while also conducting significant board-approved loan transactions with Manager affiliates, including data center and luxury condominium projects Fees Paid to Manager (in millions) | Fee Type | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Base Management Fee | $46.8 | $43.9 | | Incentive Fee | $10.2 | $22.6 | - During H1 2025, the company co-originated several large construction loans where the borrower is an affiliate of the Manager, including: - A **$587.1 million** data center loan in Virginia (STWD share: **$287.7 million**)[234](index=234&type=chunk) - A **$638.5 million** data center loan in Virginia (STWD share: **$212.8 million**)[235](index=235&type=chunk) - A **$388.4 million** luxury condo loan in Florida (STWD share: **$190.3 million**)[236](index=236&type=chunk) [Note 17: Stockholders' Equity and Non-Controlling Interests](index=48&type=section&id=Note%2017%3A%20Stockholders%27%20Equity%20and%20Non-Controlling%20Interests) The company declared quarterly dividends of **$0.48** per share for H1 2025 and established a new **$500.0 million** ATM equity offering program in May 2025, issuing **1.6 million** shares for **$31.6 million** gross proceeds during Q2 Dividends Declared in H1 2025 | Declaration Date | Record Date | Payment Date | Amount per Share | | :--- | :--- | :--- | :--- | | 6/11/25 | 6/30/25 | 7/15/25 | $0.48 | | 3/13/25 | 3/31/25 | 4/15/25 | $0.48 | - In May 2025, the company established a new ATM agreement to sell up to **$500.0 million** in common stock; during Q2 2025, **1,561,634** shares were issued for gross proceeds of **$31.6 million**[248](index=248&type=chunk) [Note 23: Segment Data](index=61&type=section&id=Note%2023%3A%20Segment%20Data) This note provides financial results for the company's four business segments, excluding securitization VIE consolidation, showing Commercial and Residential Lending as the largest net income contributor at **$349.7 million** for H1 2025, with the Property segment reporting a **$14.4 million** net loss and Corporate activities a **$191.1 million** loss Net Income (Loss) Attributable to STWD by Segment (in thousands) - Six Months Ended June 30, 2025 | Segment | Net Income (Loss) | | :--- | :--- | | Commercial and Residential Lending | $349,729 | | Infrastructure Lending | $38,174 | | Property Segment | ($14,428) | | Investing and Servicing Segment | $59,648 | | Corporate | ($191,054) | | **Total** | **$242,069** | Total Assets by Segment (in thousands) - As of June 30, 2025 (pre-VIE consolidation) | Segment | Total Assets | | :--- | :--- | | Commercial and Residential Lending | $19,310,106 | | Infrastructure Lending | $3,391,821 | | Property Segment | $2,818,081 | | Investing and Servicing Segment | $1,748,364 | | Corporate | $218,571 | | **Subtotal** | **$27,486,943** | [Note 24: Subsequent Events](index=68&type=section&id=Note%2024%3A%20Subsequent%20Events) Subsequent to quarter-end, the company acquired Fundamental Income Properties, LLC for **$2.2 billion**, issued **25.5 million** common shares for **$502.4 million**, declared a Q3 2025 dividend of **$0.48** per share, and amended two term loan facilities to reduce interest rate spreads - On July 23, 2025, acquired Fundamental Income Properties, LLC, a net lease real estate platform, for a total purchase price of **$2.2 billion**, including **$1.3 billion** of assumed debt[313](index=313&type=chunk) - In July 2025, issued **25.5 million** shares of common stock in a public offering, raising **$502.4 million** in proceeds[314](index=314&type=chunk) - Declared a Q3 2025 dividend of **$0.48** per share, payable on October 15, 2025[315](index=315&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=68&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial performance, business segments, and economic outlook, detailing significant quarterly developments, analyzing segment operations, discussing non-GAAP measures like Distributable Earnings, and reviewing liquidity and capital resources amidst economic uncertainty from tariffs and interest rates impacting real estate sectors [Economic Environment](index=69&type=section&id=Economic%20Environment) Management highlights increased economic uncertainty and market volatility from tariffs, potentially leading to slowdown and inflation, with elevated interest rates adversely affecting borrowers and commercial real estate values, and sector-specific challenges persisting in office, retail, and multifamily sectors impacting CECL reserves - Tariffs have increased economic uncertainty and global market volatility, raising the possibility of an economic slowdown and inflationary pressures[321](index=321&type=chunk) - Sector-specific headwinds continue to affect commercial real estate: the office sector is impacted by remote work, retail by e-commerce, and multifamily by sustained higher interest rates; these factors are considered in the CECL allowance[323](index=323&type=chunk) [Developments During the Second Quarter of 2025](index=70&type=section&id=Developments%20During%20the%20Second%20Quarter%20of%202025) In Q2 2025, the Commercial and Residential Lending segment originated **$1.9 billion** in commercial loans and sold an equity interest for a **$51.4 million** gain, while Infrastructure Lending committed **$698.9 million** for new loans and refinanced a **$500 million** CLO, and Corporate issued **$500 million** in senior notes and **1.6 million** shares for **$31.6 million** - **Commercial and Residential Lending:** Originated or acquired **$1.9 billion** of commercial loans, sold an equity interest for a **$70.0 million** gain, and redeemed **$220.1 million** of a CLO's third-party financing[326](index=326&type=chunk) - **Infrastructure Lending:** Committed **$698.9 million** for new loans and refinanced an existing loan pool via a new **$500.0 million** CLO (Starwood 2025-SIF5)[325](index=325&type=chunk)[327](index=327&type=chunk) - **Corporate:** Issued **$500.0 million** of 6.50% Senior Notes due 2030 and issued **1.6 million** shares under its ATM program for gross proceeds of **$31.6 million**[329](index=329&type=chunk) [Results of Operations](index=73&type=section&id=Results%20of%20Operations) Net income attributable to STWD increased to **$129.8 million** in Q2 2025 from **$112.3 million** in Q1 2025, driven by Investing and Servicing segment performance, and slightly increased to **$242.1 million** in H1 2025 from **$232.2 million** in H1 2024, primarily due to a credit loss reversal and favorable derivative changes, offset by lower interest income and non-recurring gain on sale Net Income Attributable to STWD by Quarter (in thousands) | Segment | Q2 2025 | Q1 2025 | $ Change | | :--- | :--- | :--- | :--- | | Commercial and Residential Lending | $168,682 | $181,047 | ($12,365) | | Infrastructure Lending | $19,952 | $18,222 | $1,730 | | Property Segment | ($6,624) | ($7,804) | $1,180 | | Investing and Servicing Segment | $46,312 | $13,336 | $32,976 | | Corporate | ($98,508) | ($92,546) | ($5,962) | | **Total** | **$129,814** | **$112,255** | **$17,559** | Net Income Attributable to STWD by H1 Period (in thousands) | Segment | H1 2025 | H1 2024 | $ Change | | :--- | :--- | :--- | :--- | | Commercial and Residential Lending | $349,729 | $325,707 | $24,022 | | Infrastructure Lending | $38,174 | $44,569 | ($6,395) | | Property Segment | ($14,428) | $81,924 | ($96,352) | | Investing and Servicing Segment | $59,648 | $15,258 | $44,390 | | Corporate | ($191,054) | ($235,236) | $44,182 | | **Total** | **$242,069** | **$232,222** | **$9,847** | [Non-GAAP Financial Measures](index=84&type=section&id=Non-GAAP%20Financial%20Measures) The company uses Distributable Earnings, a non-GAAP measure, to evaluate performance and indicate dividend capacity by excluding non-cash items from GAAP net income; for Q2 2025, it was **$151.1 million** (**$0.43** per share), down from Q1 2025, and for H1 2025, it was **$307.4 million** (**$0.88** per share), down from H1 2024 - Distributable Earnings is a non-GAAP measure calculated by excluding non-cash items, unrealized gains/losses, and certain other adjustments from GAAP net income; it is used to evaluate performance and is considered a strong indicator of dividend capacity[385](index=385&type=chunk)[388](index=388&type=chunk) Distributable Earnings Reconciliation Summary (in thousands) | Period | Net Income Attributable to STWD | Distributable Earnings | | :--- | :--- | :--- | | **Q2 2025** | $129,814 | $151,089 | | **Q1 2025** | $112,255 | $156,296 | | **H1 2025** | $242,069 | $307,385 | | **H1 2024** | $232,222 | $349,311 | Distributable EPS | Period | Distributable EPS | | :--- | :--- | | **Q2 2025** | $0.43 | | **Q1 2025** | $0.45 | | **Q2 2024** | $0.48 | | **Q1 2024** | $0.59 | [Liquidity and Capital Resources](index=96&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity sources include cash, operating cash flows, and financing facilities, with cash and restricted cash totaling **$474.9 million** as of June 30, 2025; H1 2025 saw **$151.5 million** net cash from operations, **$1.8 billion** used in investing, and **$1.6 billion** from financing, alongside **$16.4 billion** in secured financings and **$2.2 billion** in future loan commitments Cash Flow Summary - H1 2025 (in thousands) | Cash Flow Activity | Amount | | :--- | :--- | | Net cash provided by operating activities | $151,511 | | Net cash used in investing activities | ($1,858,825) | | Net cash provided by financing activities | $1,627,352 | | **Net decrease in cash** | **($79,962)** | Material Contractual Obligations as of June 30, 2025 (in thousands) | Obligation | Total Amount | | :--- | :--- | | Secured financings | $13,625,972 | | CLOs and SASB | $2,790,842 | | Unsecured senior notes | $3,280,750 | | Future loan commitments | $2,159,208 | [Quantitative and Qualitative Disclosures about Market Risk](index=106&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages credit, interest rate, and foreign currency risks through active asset management, hedging, and matching asset/liability characteristics, with a 1.00% decrease in index rates estimated to increase net investment income by **$4.7 million** annually, and foreign currency exposure substantially hedged with forward contracts - The company actively manages credit risk, interest rate risk, and foreign currency risk; strategies include matching asset and liability characteristics and using derivatives[474](index=474&type=chunk) Interest Rate Sensitivity Analysis (Annual Change in Net Investment Income, in thousands) | Rate Change | Estimated Impact | | :--- | :--- | | 1.00% Decrease | $4,711 | | 0.50% Decrease | ($108) | | 0.25% Increase | $625 | - Substantially all net asset exposure to GBP, EUR, AUD, CHF, and SEK has been hedged with foreign currency forward contracts as of June 30, 2025[485](index=485&type=chunk) [Controls and Procedures](index=108&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[487](index=487&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2025[488](index=488&type=chunk) Part II Other Information [Legal Proceedings](index=109&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material legal proceedings pending or threatened that would adversely affect its business, financial position, or results of operations - No material legal proceedings are pending or threatened against the company[491](index=491&type=chunk) [Risk Factors](index=109&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes to the risk factors disclosed in the Form 10-K have occurred[492](index=492&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=109&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports no unregistered sales of equity securities or issuer purchases of equity securities during the three months ended June 30, 2025 - There were no unregistered sales of equity securities during the second quarter of 2025[493](index=493&type=chunk) [Defaults Upon Senior Securities](index=109&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[494](index=494&type=chunk) [Other Information](index=109&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the second quarter of 2025 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[496](index=496&type=chunk) [Exhibits](index=110&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the indenture for the 6.500% Senior Notes due 2030 and Sarbanes-Oxley Act certifications

[Overview and Highlights](index=1&type=section&id=Warby%20Parker%20Announces%20Second%20Quarter%202025%20Results) Warby Parker achieved significant milestones, including opening its 300th store and partnering with Google for intelligent eyewear, while leveraging AI with its new 'Advisor' tool [Executive Summary & Strategic Initiatives](index=1&type=section&id=Executive%20Summary%20%26%20Strategic%20Initiatives) Warby Parker achieved significant milestones, including opening its 300th store and partnering with Google for intelligent eyewear, while leveraging AI with its new 'Advisor' tool - Announced a partnership with Google to develop intelligent eyewear, signaling a commitment to innovation and AI integration[2](index=2&type=chunk) - Launched "Advisor," a personalized, AI-driven recommendation tool, which has shown strong early traction[3](index=3&type=chunk) - Celebrated major milestones including the opening of its **300th store** and the distribution of **20 million pairs of glasses** to people in need[2](index=2&type=chunk) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Warby Parker reported strong Q2 2025 results, with net revenue up **13.9%** to **$214.5 million**, improved net loss, and expanded retail footprint Q2 2025 Key Financial & Operational Metrics (YoY) | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Net Revenue | $214.5 million | +13.9% | | Active Customers (TTM) | 2.60 million | +9.0% | | Average Revenue per Customer | $316 | +4.6% | | Net Loss | ($1.8 million) | Improved by $5.0M | | Adjusted EBITDA | $25.0 million | +$5.4M | | Adjusted EBITDA Margin | 11.7% | +1.3 pts | | Free Cash Flow | $23.9 million | - | | Net New Stores | 11 | - | [Financial Performance](index=1&type=section&id=Financial%20Performance) This section details Warby Parker's Q2 2025 financial results, balance sheet, and full-year 2025 outlook, highlighting key performance indicators [Detailed Financial Results (Q2 2025)](index=1&type=section&id=Detailed%20Financial%20Results%20%28Q2%202025%29) Q2 2025 saw gross margin decline to **53.0%** due to a **$2.5 million** inventory write-down, while SG&A leverage improved net loss to **$1.8 million** - Gross margin declined to **53.0%** from **56.0%** in the prior year. The decrease was driven by a **$2.5 million** one-time inventory write-down, sales growth of contact lenses, and increased store occupancy costs[6](index=6&type=chunk) - The decision to sunset the Home-Try On program at the end of the year was a primary reason for the one-time inventory write-downs[6](index=6&type=chunk)[11](index=11&type=chunk) - SG&A expenses as a percentage of revenue decreased to **55.1%** from **60.8%** in the prior year, primarily due to leverage from lower stock-based compensation and corporate expenses[11](index=11&type=chunk) - Net loss improved by **$5.0 million** to **$1.8 million**. This figure includes **$3.8 million** in one-time costs, comprising **$2.5 million** in inventory write-downs and **$1.3 million** in restructuring costs[11](index=11&type=chunk) [Balance Sheet](index=2&type=section&id=Balance%20Sheet%20Highlights) Warby Parker maintained a solid financial position, ending Q2 2025 with **$286.4 million** in cash and cash equivalents - The company ended Q2 2025 with **$286.4 million** in cash and cash equivalents[7](index=7&type=chunk) [Full Year 2025 Outlook](index=2&type=section&id=2025%20Outlook) The company raised its full-year 2025 guidance, projecting **14% to 15%** net revenue growth and an Adjusted EBITDA margin of **11.1% to 11.4%** Full Year 2025 Guidance | Metric | Guidance | | :--- | :--- | | Net Revenue | $880M - $888M (+14% to +15% growth) | | Adjusted EBITDA | $98M - $101M | | Adjusted EBITDA Margin | 11.1% - 11.4% | | New Store Openings | 45 (including 5 shop-in-shops at Target) | [Corporate Updates](index=2&type=section&id=Corporate%20Updates) This section provides an update on Warby Parker's leadership, including the CFO's departure and interim appointment of a Co-CEO [Leadership Update](index=2&type=section&id=Leadership%20Update) Warby Parker announced CFO Steve Miller's departure on October 1, 2025, with Co-CEO Dave Gilboa assuming interim financial officer roles - Steve Miller is stepping down as Chief Financial Officer, effective October 1, 2025, after fourteen years with the company[8](index=8&type=chunk)[9](index=9&type=chunk) - Co-Founder and Co-CEO Dave Gilboa will serve as interim principal financial officer and principal accounting officer until a successor is appointed[8](index=8&type=chunk) [Appendix](index=3&type=section&id=Appendix) This appendix provides supplementary information including conference call details, forward-looking statements, a glossary, and selected financial statements [Conference Call Information](index=3&type=section&id=Webcast%20and%20Conference%20Call) A conference call and webcast were scheduled for August 7, 2025, at 8:00 a.m. ET to discuss Q2 2025 results and outlook - A conference call to discuss Q2 2025 results was scheduled for 8:00 a.m. ET on August 7, 2025[14](index=14&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section contains legal disclaimers regarding forward-looking statements, outlining risks and uncertainties that could impact future results - The press release includes forward-looking statements concerning future operating results, growth, new store openings, and strategic initiatives[15](index=15&type=chunk) - These statements are subject to numerous risks and uncertainties, including economic conditions, competition, supply chain issues, and the ability to successfully collaborate with partners like Google[16](index=16&type=chunk)[17](index=17&type=chunk) [Glossary and Non-GAAP Financial Measures](index=4&type=section&id=Glossary%20and%20Non-GAAP%20Financial%20Measures) This section defines key operational metrics like **Active Customers** and explains non-GAAP financial measures such as Adjusted EBITDA and Free Cash Flow - Defines **Active Customers** as unique customer accounts with at least one purchase in the preceding 12-month period[19](index=19&type=chunk) - Defines **Average Revenue per Customer** as the total net revenues in the preceding 12-month period divided by the current period's Active Customers[19](index=19&type=chunk) - Explains the use of non-GAAP measures such as Adjusted EBITDA, Adjusted Gross Margin, and Free Cash Flow to provide consistency and comparability with past financial performance[20](index=20&type=chunk)[21](index=21&type=chunk) [Selected Financial Information](index=6&type=section&id=Selected%20Financial%20Information) This section presents Warby Parker's unaudited condensed consolidated financial statements, including Balance Sheets, Statements of Operations, and Cash Flows, with GAAP to non-GAAP reconciliations [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were **$701.9 million**, with cash and cash equivalents at **$286.4 million**, reflecting a solid financial position Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $286,384 | $254,161 | | Total current assets | $346,097 | $326,046 | | Total assets | $701,899 | $676,490 | | Total current liabilities | $135,533 | $130,354 | | Total liabilities | $340,448 | $336,417 | | Total stockholders' equity | $361,451 | $340,073 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, net loss improved to **$1.8 million** on **$214.5 million** revenue, compared to a **$6.8 million** net loss in Q2 2024, with diluted EPS at **($0.01)** Statement of Operations Summary - Three Months Ended June 30 (in thousands, except per share data) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net revenue | $214,475 | $188,222 | | Gross profit | $113,609 | $105,382 | | Loss from operations | ($4,525) | ($8,956) | | Net (loss) income | ($1,752) | ($6,762) | | Diluted EPS | ($0.01) | ($0.06) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operations increased to **$69.6 million**, leading to a **$32.2 million** rise in cash and cash equivalents Statement of Cash Flows Summary - Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $69,557 | $51,550 | | Net cash used in investing activities | ($32,438) | ($34,088) | | Net cash (used in) provided by financing activities | ($5,075) | $3,707 | | Net change in cash and cash equivalents | $32,223 | $21,064 | [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section details adjustments to reconcile GAAP net loss of **$1.8 million** to an Adjusted EBITDA of **$25.0 million** for Q2 2025, including stock-based compensation and one-time costs Reconciliation of Net Loss to Adjusted EBITDA - Q2 2025 (in thousands) | Description | Amount | | :--- | :--- | | **Net loss (GAAP)** | **($1,752)** | | Depreciation and amortization | $12,486 | | Stock-based compensation expense | $9,162 | | Inventory write-downs | $2,456 | | Other costs (restructuring) | $1,341 | | Other adjustments | $1,721 | | **Adjusted EBITDA (Non-GAAP)** | **$25,014** | - Adjusted Gross Margin for Q2 2025 was **54.3%**, compared to a GAAP Gross Margin of **53.0%**, primarily due to the exclusion of one-time inventory write-downs[42](index=42&type=chunk)[44](index=44&type=chunk)

KONTOOR BRANDS REPORTS 2025 SECOND QUARTER RESULTS; STRENGTHENS 2025 OUTLOOK Exhibit 99.1 Second Quarter 2025 Highlights Updated Full Year 2025 Outlook Revenue was $658 million and increased 8 percent compared to prior year. Second quarter results include the contribution from Helly Hansen, which closed on May 31, 2025. Wrangler brand global revenue was $461 million and increased 7 percent compared to prior year. Wrangler U.S. revenue increased 9 percent, driven by an 8 percent increase in wholesale and a 1 ...

Brilliant Earth Reports Strong Q2 Exceeding High End of Net Sales and Profitability Guidance; Announces One- Dividend and Distribution The Company also announced today that its Board of Directors has declared a one-time cash dividend and distribution of $0.25 per share to holders of its Class A Common Stock and holders of common units of Brilliant Earth, LLC, respectively. The distribution from Brilliant Earth, LLC will total approximately $25.3 million, of which a pro rata portion will be used by the Compa ...

[Financial Highlights and Business Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Business%20Outlook) [Q2 2025 Performance Summary](index=1&type=section&id=Q2%202025%20Performance%20Summary) DraftKings achieved record financial results in the second quarter of 2025, with revenue growing 37% year-over-year to $1.513 billion, and new records for Net Income at $158 million and Adjusted EBITDA at $301 million Q2 2025 Financial Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $1,513 million | $1,104 million | +37% | | **Net Income** | $158 million | $64 million | +147% | | **Adjusted EBITDA** | $301 million | $128 million | +135% | - Revenue growth was attributed to healthy customer engagement, efficient customer acquisition, a higher structural Sportsbook hold percentage, and sportsbook-friendly outcomes[2](index=2&type=chunk) - The company repurchased **6.5 million shares** through its stock repurchase program in the first half of 2025[3](index=3&type=chunk) [Key Operating Metrics](index=1&type=section&id=Key%20Operating%20Metrics) The company demonstrated continued growth in its user base and monetization, with Monthly Unique Payers (MUPs) increasing by 6% to 3.3 million and Average Revenue per MUP (ARPMUP) rising 29% to $151 Q2 2025 Operating Metrics | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Monthly Unique Payers (MUPs)** | 3.3 million | N/A | +6% | | **Average Revenue per MUP (ARPMUP)** | $151 | N/A | +29% | - The acquisition of Jackpocket contributed to user growth; excluding its impact, MUPs increased by **5%** and ARPMUP increased by **30%** compared to Q2 2024[6](index=6&type=chunk) [Fiscal Year 2025 Guidance](index=1&type=section&id=Fiscal%20Year%202025%20Guidance) DraftKings maintained its full-year 2025 guidance for both revenue and Adjusted EBITDA, anticipating revenue closer to the high end and Adjusted EBITDA near the midpoint, incorporating Missouri launch and higher tax rates FY 2025 Guidance | Guidance Metric | FY 2025 Range | | :--- | :--- | | **Revenue** | $6.2 billion to $6.4 billion | | **Adjusted EBITDA** | $800 million to $900 million | - The company is on track to deliver revenue closer to the high end of the guidance range, equating to approximately **32% year-over-year growth** at the midpoint[5](index=5&type=chunk) - Guidance now incorporates the anticipated launch of mobile sports betting in Missouri and the impact of higher tax rates in New Jersey, Louisiana, and Illinois[10](index=10&type=chunk) [Market Footprint](index=2&type=section&id=Market%20Footprint) DraftKings continues to expand its operational presence, with mobile sports betting live in 25 states and Washington D.C. (49% U.S. population) and iGaming in 5 states (11% U.S. population), with Missouri launch pending - Mobile sports betting is live in **25 states** and Washington, D.C., representing approximately **49% of the U.S. population**[10](index=10&type=chunk) - iGaming is live in **5 states**, representing approximately **11% of the U.S. population**[10](index=10&type=chunk) - The company expects to launch its Sportsbook product in Missouri, pending necessary approvals[10](index=10&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, DraftKings reported total assets of $4.47 billion, a slight increase from $4.28 billion, with total liabilities rising to $3.46 billion due to a new Term B Loan, and cash increasing to $1.26 billion Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $1,261,969 | $788,287 | | **Total current assets** | $1,786,699 | $1,533,761 | | **Total assets** | $4,474,302 | $4,283,725 | | **Total current liabilities** | $1,334,553 | $1,654,991 | | **Total liabilities** | $3,464,674 | $3,273,099 | | **Total stockholders' equity** | $1,009,628 | $1,010,626 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a significant turnaround in profitability for Q2 2025, posting a net income of $157.9 million, driven by a 37% revenue increase to $1.51 billion, leading to an income from operations of $150.6 million Condensed Consolidated Statements of Operations (in thousands) | Income Statement | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Revenue** | $1,512,507 | $1,104,441 | | **Income (loss) from operations** | $150,644 | $(32,388) | | **Net income attributable to common stockholders** | $157,936 | $63,822 | | **Diluted Earnings Per Share** | $0.30 | $0.10 | [Revenue Disaggregation](index=5&type=section&id=Revenue%20Disaggregation) In Q2 2025, Sportsbook revenue grew by 45.3% to $997.9 million, driven by a 6.3% increase in handle and improved net revenue margin, while iGaming revenue increased by 22.6% to $429.7 million Revenue by Source (in thousands) | Revenue Source | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Sportsbook Revenue** | $997,872 | $686,889 | +45.3% | | **iGaming Revenue** | $429,660 | $350,552 | +22.6% | | **Other Revenue** | $84,975 | $67,000 | +26.8% | | **Total Revenue** | $1,512,507 | $1,104,441 | +36.9% | - The Sportsbook Net Revenue Margin increased to **8.7%** in Q2 2025 from **6.4%** in Q2 2024[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, DraftKings generated $54.9 million in cash from operating activities, a significant improvement, with financing activities providing a net inflow of $253.1 million, ending with $1.56 billion in combined cash Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash from operating activities** | $54,905 | $(41,006) | | **Net cash used in investing activities** | $(74,278) | $(456,534) | | **Net cash from financing activities** | $253,134 | $(52,469) | - Financing activities included **$588.1 million** in proceeds from a Term B Loan and **$242.7 million** used for stock repurchases under the company's program[20](index=20&type=chunk) [Supplemental Information](index=7&type=section&id=Supplemental%20Information) [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) The company provides non-GAAP measures, Adjusted EBITDA and Adjusted Earnings Per Share, to supplement GAAP results by excluding items like stock-based compensation and amortization of acquired intangibles for clearer core performance - DraftKings uses Adjusted EBITDA and Adjusted Earnings (Loss) Per Share to evaluate its core operating performance and trends, as these measures exclude certain non-recurring, non-cash, or non-operating items[21](index=21&type=chunk)[24](index=24&type=chunk) [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20EBITDA) For Q2 2025, Adjusted EBITDA was $300.6 million, reconciled from a net income of $157.9 million, primarily by adding back stock-based compensation and depreciation & amortization Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Reconciliation | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income (loss)** | $157,936 | $63,822 | | **Adjustments** | $142,708 | $64,145 | | **Adjusted EBITDA** | $300,644 | $127,967 | [Reconciliation of Diluted EPS to Adjusted EPS](index=8&type=section&id=Reconciliation%20of%20Diluted%20EPS%20to%20Adjusted%20EPS) Adjusted Earnings Per Share for Q2 2025 was $0.38, reconciled from a GAAP diluted EPS of $0.30, with primary adjustments for stock-based compensation and amortization of acquired intangible assets Reconciliation of Diluted EPS to Adjusted EPS (per share) | Reconciliation | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Diluted earnings (loss) per share** | $0.30 | $0.10 | | **Adjustments** | $0.08 | $0.12 | | **Adjusted Earnings Per Share** | $0.38 | $0.22 | [About DraftKings & Forward-Looking Statements](index=9&type=section&id=About%20DraftKings%20%26%20Forward-Looking%20Statements) DraftKings is a U.S.-based digital sports entertainment and gaming company offering daily fantasy, sports betting, and iGaming, with the report containing forward-looking statements subject to risks and uncertainties - DraftKings is a U.S.-based vertically integrated sports betting operator with products in daily fantasy, regulated gaming, and digital media[31](index=31&type=chunk) - The report includes forward-looking statements regarding guidance, future results, and strategic plans, which are not guarantees of future performance and are subject to risks[33](index=33&type=chunk)[34](index=34&type=chunk)

Exhibit 99.1 INVESTOR CONTACT: MEDIA CONTACT: Mike Neese Sara Matheu (847) 232-5894 (773) 580-3775 Michael.Neese@usfoods.com Sara.Matheu@usfoods.com US Foods Reports Second Quarter Fiscal Year 2025 Earnings Grew Net Sales 3.8% to $10.1 Billion, Net Income 13.1% to $224 Million and Diluted EPS 20.0% to $0.96 Grew Adjusted EBITDA 12.1% to $548 Million and Adjusted Diluted EPS 28.0% to $1.19 Raises Full Year Adjusted EBITDA and Adjusted Diluted EPS Guidance Repurchased $250 Million of Shares and Reduced Net Le ...

Teads Holding Co. Announces Second Quarter 2025 Results Achieved Q2 guidance on both Ex-TAC gross profit and Adjusted EBITDA; Strong cash generation; CTV 80%+ growth year-over-year New York – August [X], 2025 — Teads Holding Co. (Nasdaq: TEAD) ("Teads" or the "Company") announced today financial results for the quarter ended June 30, 2025. Second Quarter 2025 Key Financial Metrics : 1 | | Three Months Ended | | | | | | Six Months Ended | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | June 30, ...