Financial Performance - For the nine months ended September 30, 2025, the company reported a net income of $59.1 million, compared to a net loss of $33.7 million for the same period in 2024[107]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $1.87 billion, an increase from $1.63 billion in the same period of 2024, reflecting a growth of approximately 14.5%[107]. - Reported fully diluted earnings per share (EPS) for the three months ended September 30, 2025, was $0.28, compared to a loss of $0.11 for the same period in 2024[110]. - Adjusted EPS for the nine months ended September 30, 2025, was $1.48, up from $1.28 in the same period of 2024[110]. - Net income for the three months ended September 30, 2025, was $86,241, a significant increase of 356.2% from a net loss of $33,665 in the prior year[118]. - For the nine months ended September 30, 2025, total revenues were $5,058,570, a 10.7% increase from $4,568,630 in the same period of 2024[118]. Revenue Growth - Organic storage rental revenue growth is primarily driven by revenue management in the Global RIM Business segment, with stable volume expected in the near term[104]. - The company anticipates continued total revenue and Adjusted EBITDA growth for the remainder of 2025 and into 2026, supported by new product and service offerings[104]. - Storage rental revenue for the three months ended September 30, 2025, was $1,032,897, reflecting a 10.4% increase from $935,701 in the same period of 2024[120]. - Service revenue for the three months ended September 30, 2025, increased by 16.0% to $721,196 compared to $621,657 in the same period of 2024[120]. - The company experienced a $73 million increase in service revenue due to recent acquisitions in its ALM business during the nine months ended September 30, 2025[121]. Costs and Expenses - Total cost of sales for the nine months ended September 30, 2025, was $2,256,980, an increase of $249,364 or 12.4% compared to $2,007,616 in 2024[122]. - Labor costs for the three months ended September 30, 2025, increased by $38,487 or 14.6% to $302,986 from $264,499 in 2024[122]. - Selling, general and administrative expenses for the nine months ended September 30, 2025, totaled $1,055,441, up by $49,209 or 4.9% from $1,006,232 in 2024[124]. - Interest expense, net rose by $82.4 million to $609.5 million for the nine months ended September 30, 2025, compared to $527.1 million in the prior year[131]. - Depreciation expense increased by $65.6 million or 14.0% for the nine months ended September 30, 2025, compared to the prior year[126]. Project Matterhorn - The company incurred approximately $530.9 million in restructuring and transformation costs related to Project Matterhorn from its inception through September 30, 2025[98]. - The company expects to complete Project Matterhorn by December 31, 2025, aiming to optimize its global operating model[98]. Capital Expenditures and Investments - Total capital expenditures for the nine months ended September 30, 2025, amounted to $1,755.4 million, a significant increase from $1,173.9 million in 2024[155]. - Growth investment capital expenditures reached $1,542.4 million, up from $1,072.4 million in the previous year, indicating a 43.7% increase[155]. - The company expects total capital expenditures of approximately $1,950.0 million for the year ending December 31, 2025, with $1,800.0 million allocated for growth investments[155]. Financial Health and Ratios - The net total lease adjusted leverage ratio was 5.0, below the maximum allowable of 7.0, indicating compliance with financial covenants[170]. - The fixed charge coverage ratio stood at 2.5, exceeding the minimum allowable of 1.5, demonstrating strong financial health[170]. Risks and Challenges - The company has faced various risks, including changes in customer preferences and compliance costs related to data privacy and cybersecurity[96]. - The company’s ability to service or refinance its indebtedness is subject to various economic and regulatory factors[171]. Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2025, were $840,001,000, an increase of $74,900,000 compared to $765,128,000 in 2024[151]. - Cash and cash equivalents at the end of the period for September 30, 2025, were $195,210,000, up from $168,515,000 in 2024[151]. Debt and Financing - Long-term debt as of September 30, 2025, totaled $16,193.6 million, with a net long-term debt of $15,494.2 million after accounting for the current portion[159]. - Net proceeds of approximately $1,390.7 million from the issuance of Euro Notes were recorded[166]. - The UK Revolving Credit Facility was fully drawn at 140.0 million British pounds sterling as of September 30, 2025, with an interest rate of 6.1%[165]. Derivative Instruments - The company utilizes interest rate swap agreements to hedge against changes in interest rates on floating rate indebtedness[172]. - Unrealized gains and losses from interest rate and cross-currency swap agreements are recognized as assets and liabilities, respectively, in accumulated other comprehensive items[172][176].

Financial Performance - Total revenue for Q3 2025 was $580.4 million, an increase of 18.1% compared to the prior year quarter[5] - Net income for Q3 2025 was $26.3 million, up 24.7% from the prior year quarter[5] - Adjusted EBITDA for Q3 2025 was $88.8 million, up 6.6% from $83.3 million in Q3 2024[10] - Revenue for the three months ended September 30, 2025, was $580,437 thousand, compared to $491,558 thousand for the same period in 2024, representing an increase of 18.1%[32] - Net income for the three months ended September 30, 2025, was $26,309 thousand, up from $21,096 thousand in the same period of 2024, reflecting a growth of 24.0%[32] - Adjusted net income for the nine months ended September 30, 2025, was $90,933 thousand, compared to $72,046 thousand for the same period in 2024, indicating a year-over-year increase of 26.0%[33] - Basic earnings per share for the three months ended September 30, 2025, was $0.25, compared to $0.19 for the same period in 2024, marking a 31.6% increase[32] - Funds From Operations (FFO) for Q3 2025 reached $51,519,000, up 9.1% from $47,122,000 in Q3 2024[35] - Normalized Funds From Operations (Normalized FFO) for Q3 2025 was $52,082,000, a 9.3% increase from $47,602,000 in Q3 2024[35] - EBITDA for Q3 2025 was $89,030,000, representing a 9.9% increase from $81,367,000 in Q3 2024[36] - Adjusted EBITDA for Q3 2025 was $88,832,000, up 6.1% from $83,294,000 in Q3 2024[36] Revenue Sources - Revenue from ICE, the largest government partner, was $215.9 million, reflecting a 54.6% increase from $139.7 million in Q3 2024[9] - New contracts at four facilities are expected to generate approximately $320 million of annual revenue once stabilized occupancy is achieved[4] - The acquisition of the Farmville Detention Center is expected to generate approximately $40.0 million in annual incremental revenue[15] Guidance and Projections - Revised financial guidance for full year 2025 includes net income of $107.0 million to $113.0 million, down from prior guidance of $116.4 million to $124.4 million[20] - The guidance for Funds From Operations for the year ending December 31, 2025 is projected between $207,326,000 and $214,326,000[37] - The guidance for Normalized Funds From Operations for the year ending December 31, 2025 is projected between $209,000,000 and $216,000,000[37] - The projected diluted EPS for 2025 is between $0.99 and $1.05[37] - The projected Adjusted Diluted EPS for 2025 is between $1.00 and $1.06[37] Operational Metrics - Average daily residential population increased to 55,236 in Q3 2025, a rise of 8.9% from 50,757 in Q3 2024[7] - The average occupancy rate in Q3 2025 was 76.7%, compared to 75.2% in Q3 2024[7] Capital Expenditures - The company expects to invest between $29.0 million and $31.0 million in maintenance capital expenditures on real estate assets, and between $31.0 million and $34.0 million for other assets and information technology in 2025[21] - Capital expenditures associated with activating previously idled facilities are projected to be approximately $97.5 million to $99.5 million, reflecting an increase due to requests from ICE related to new contract awards[21] Balance Sheet - Total assets as of September 30, 2025, amounted to $3,110,131 thousand, an increase from $2,931,891 thousand as of December 31, 2024[31] - The company reported total liabilities of $1,639,659 thousand as of September 30, 2025, compared to $1,438,540 thousand as of December 31, 2024[31] Company Background and Risks - The company has been a partner for government solutions for over 40 years, focusing on corrections and detention management, and residential reentry facilities[25] - Forward-looking statements indicate potential risks including changes in government policy and economic conditions that could impact future performance[26]

Financial Performance - Total revenue for Q2 FY26 was $200 million, representing an 8% increase year-over-year[5]. - Annualized recurring revenue (ARR) increased by $14 million quarter-over-quarter to $516 million, up 7% compared to the prior year[5][8]. - Subscription revenue was $150 million, up 5% year-over-year, while Marketplace & Other revenue was $50 million, up 18%[5][6]. - GAAP operating income was $21 million, compared to $7 million in the prior year, with a GAAP operating margin of 11%, expanding by 7 percentage points[5][6]. - Non-GAAP diluted earnings per share was $0.55, compared to $0.51 in the prior year[5][6]. - Revenues for the six months ended September 30, 2025, increased to $394,651,000, a growth of 9.2% compared to $361,444,000 in the same period of 2024[26]. - Net earnings for the six months reached $35,167,000, a turnaround from a loss of $5,757,000 in 2024[26]. - Basic earnings per share improved to $0.54, compared to a loss of $0.09 per share in the same period last year[26]. - Net earnings for the three months ended September 30, 2025, were $27,420,000, a significant increase from $1,732,000 in the same period of 2024, representing a growth of 1,483.1%[49]. - Total revenues for the fiscal year 2025 were $745,580,000, with a gross profit margin of 71.0%[49]. Operational Efficiency - Current remaining performance obligations (CRPO) were $430 million, up 15% compared to the prior year[8]. - Gross profit for the same period was $276,738,000, with a gross margin of 70.1%, down from 71.5% in 2024[26]. - Income from operations surged to $28,649,000, representing a significant increase of 1,179.5% from $2,239,000 in the prior year[26]. - Total operating expenses decreased by 3.2% to $248,089,000, with notable reductions in research and development expenses by 13.0%[26]. - Adjusted EBITDA for the six months was $81,750,000, up from $68,899,000 in 2024, reflecting a strong operational performance[34]. - Trade accounts receivable increased by 16.4% to $216,791,000, indicating improved sales and collection efficiency[36]. - Cash and cash equivalents decreased by 10.6% to $369,446,000, reflecting changes in working capital[36]. - Total stockholders' equity slightly decreased by 0.5% to $943,807,000, indicating stable financial health despite fluctuations in cash[36]. Shareholder Returns - Share repurchases totaled 1.8 million shares for $50 million in Q2 FY26, with a fiscal year-to-date total of 2.9 million shares for $80 million[5]. - The company repurchased treasury stock amounting to $49,890,000 during the three months ended September 30, 2025, slightly up from $49,868,000 in the same period of 2024[39]. Future Projections - LiveRamp expects Q3 FY26 revenue to be between $209 million and $213 million, an increase of 7% to 9%[14]. - The company anticipates continued growth in gross profit margins, projecting a gross margin of 72.3% for Q3 FY2026[55]. - GAAP income from operations for the quarter ending December 31, 2025, is projected to be between $33,000 and $35,000 thousand, while for the year ending March 31, 2026, it is expected to be between $83,000 and $87,000 thousand[62]. - Non-GAAP income from operations for the quarter ending December 31, 2025, is projected to be between $55,000 and $57,000 thousand, and for the year ending March 31, 2026, it is expected to be between $178,000 and $182,000 thousand[62]. Research and Development - Research and development expenses decreased by 15.8% to $36,952,000 for the three months ended September 30, 2025, compared to $43,889,000 in the same period of 2024[49]. - Research and development expenses for FY2025 totaled $176,668 thousand, with a decrease to $39,608 thousand in Q2 FY2026[53]. Non-GAAP Measures - The company uses non-GAAP measures to provide a clearer understanding of its operational performance and future results[65]. - Adjusted EBITDA is utilized to measure performance across periods and segments, providing useful supplementary information for investors[73]. - Free cash flow is defined as operating cash flow less capital expenditures, representing discretionary spending availability[74]. - The company emphasizes that non-GAAP measures should not be considered in isolation from GAAP measures[65].

Financial Performance - The company reported revenue of $54.3 million for the three months ended September 30, 2025, representing a year-over-year increase of 54% from $35.3 million in the same period of 2024[187]. - The net loss for the three months ended September 30, 2025, was $32.8 million, compared to a net loss of $38.1 million for the same period in 2024[187]. - Total revenues rose by 54% to $54,324,000 for the three months ended September 30, 2025, compared to $35,290,000 in 2024[217]. - The company reported a net loss of $135.8 million for the nine months ended September 30, 2025, compared to a net loss of $146.9 million in the same period of 2024[268][269]. Revenue Breakdown - Software products and services revenue increased by 28% to $40,858,000 for the three months ended September 30, 2025, compared to $31,884,000 in 2024[217]. - Drug discovery revenue surged by 295% to $13,466,000 for the three months ended September 30, 2025, compared to $3,406,000 in 2024[217]. - Drug discovery revenue for the nine months ended September 30, 2025, increased by 107% to $38,416,000 compared to $18,519,000 in 2024[217]. - Software revenue from on-premise software grew by 30% to $15,928,000 for the three months ended September 30, 2025, compared to $12,250,000 in 2024[219]. - Hosted software revenue increased by 31% to $11,585,000 for the three months ended September 30, 2025, compared to $8,814,000 in 2024[221]. - Drug discovery services revenue surged by 362% to $13,008,000 for the three months ended September 30, 2025, compared to $2,813,000 in 2024[225]. Expenses and Cost Management - Research and development expenses decreased by 16% to $42,757,000 for the three months ended September 30, 2025, compared to $50,977,000 in 2024[217]. - Total operating expenses decreased by 14% to $73,986,000 for the three months ended September 30, 2025, compared to $86,150,000 in 2024[217]. - Sales and marketing expenses decreased by $825,000 (8%) for the three months ended September 30, 2025, primarily due to a $400,000 reduction in personnel-related expenses[240]. - General and administrative expenses decreased by $3.1 million (13%) for the three months ended September 30, 2025, mainly due to a $2.3 million decrease in personnel-related expenses[242]. - The restructuring implemented in May 2025 is expected to reduce operating expenses by approximately $30 million on an annualized basis[190]. Cash Flow and Financing - As of September 30, 2025, the company had cash, cash equivalents, restricted cash, and marketable securities totaling $401.0 million[258]. - The accumulated deficit as of September 30, 2025, was $661.3 million, reflecting a history of significant operating losses[254]. - The company plans to utilize existing cash and marketable securities primarily to fund software and drug discovery activities[260]. - The company may seek additional equity or debt financing if required, but there is uncertainty regarding the ability to raise such financing on acceptable terms[261]. - For the nine months ended September 30, 2025, the company generated approximately $30.0 million in cash from operating activities, a significant improvement compared to a cash usage of $126.3 million in the same period of 2024[268][269]. Collaborations and Milestones - The company received $147.2 million in cash distributions from Nimbus Therapeutics in connection with Takeda's acquisition of Nimbus Lakshmi, Inc.[178]. - The company is eligible to receive up to $482.0 million in total milestone payments from its collaboration with Bristol-Myers Squibb, with $32.0 million recognized as of September 30, 2025[183]. - The collaboration with Novartis includes an initial upfront fee of $150.0 million and potential total milestone payments of up to $2.272 billion[185]. Clinical Development - The company plans to present additional clinical data from the ongoing Phase 1 clinical trial of SGR-1505 at the American Society of Hematology Annual Meeting in December 2025[171]. - The FDA granted orphan drug designation to SGR-1505 for the potential treatment of mantle cell lymphoma and Waldenström macroglobulinemia[173]. - The company anticipates reporting initial data from the Phase 1 clinical trial of SGR-3515 in the first half of 2026[174]. Market Risks and Obligations - The change in fair value of equity investments showed a decrease of $15.8 million for the three months ended September 30, 2025, compared to a gain of $25.5 million in the same period in 2024[246]. - Other income decreased by $1.1 million (23%) for the three months ended September 30, 2025, attributed to unfavorable currency fluctuations and decreased interest income[248]. - The company has no material non-cancelable obligations under agreements with CRO vendors and other service providers[266]. - There have been no material changes in reported market risks or risk management policies since the last annual report[274].

Financial Performance - Q3 2025 net revenue increased by 45% to $83.6 million, compared to $57.7 million in Q3 2024[2] - GAAP gross profit for Q3 2025 was $44.7 million, representing a gross margin of 53.5%[3] - Non-GAAP gross profit for Q3 2025 was $49.1 million, with a non-GAAP gross margin of 58.8%[4] - The company reported a GAAP net loss of $8.0 million, or $0.31 per diluted share, in Q3 2025[3] - Non-GAAP net income for Q3 2025 was $23.4 million, or $0.87 per diluted share[4] - Revenue for the nine months ended September 30, 2025, was $213,375,000, a 58.5% increase from $134,586,000 in the same period of 2024[18] - GAAP gross profit increased to $111,105,000, with a gross margin of 52.1%, compared to $68,650,000 and 51.0% in the prior year[18] - Non-GAAP net income reached $41,336,000, significantly up from $10,399,000, reflecting strong operational performance[18] - Non-GAAP income from operations was $24,664,000, representing 11.6% of revenue, compared to a loss of $7,034,000 in the previous year[18] - GAAP net loss per share diluted improved to $(2.12) from $(3.25) year-over-year[18] - Non-GAAP net income per share diluted was $1.63, up from $0.44, highlighting enhanced profitability[18] Cash and Assets - Total cash, cash equivalents, and short-term investments amounted to $809.6 million as of September 30, 2025[4] - Total current assets increased to $932,000,000 from $544,060,000, driven by higher cash and short-term investments[20] - Cash and cash equivalents rose to $27,110,000, up from $6,106,000, indicating improved liquidity[20] Expenses - Research and development expenses for Q3 2025 were $30.0 million, while selling, general, and administrative expenses were $30.6 million[12] Market Position and Growth - The company expects to exceed 50% year-over-year growth for 2025, driven by strong demand in the Communications-Enterprise-Datacenter business[3] - SiTime has shipped over 3.5 billion devices, indicating significant market penetration and product adoption[9] Equity and Liabilities - Total liabilities decreased to $173,597,000 from $185,240,000, reflecting effective cost management[20] - Stockholders' equity increased to $1,103,403,000 from $699,719,000, demonstrating strong financial health[20] Stock Options - The company granted 27,923 restricted stock units (RSUs) to 19 newly hired individuals as part of its inducement plan[7]

Customer Growth - Active customers increased to approximately 8.9 million, representing a 21% growth for the three months ended September 30, 2025, compared to the same period in 2024[125] - Active customers increased by 21% year-over-year, contributing to revenue growth and retention of existing customers[155] Send Volume - Send volume rose 35% to $19.5 billion for the three months ended September 30, 2025, up from $14.5 billion in the same period in 2024[128] - For the nine months ended September 30, 2025, send volume increased 38% to $54.2 billion, compared to $39.2 billion for the same period in 2024[128] - Send volume rose by 35% to $19.5 billion for the three months ended September 30, 2025, and by 38% to $54.2 billion for the nine months ended September 30, 2025, compared to the same periods in 2024[156] Revenue Performance - Revenue increased by 25% to $419.5 million for the three months ended September 30, 2025, and by 31% to $1.19 billion for the nine months ended September 30, 2025, compared to the same periods in 2024[153] Expenses and Costs - Transaction expenses increased by 27% to $146.7 million for the three months ended September 30, 2025, and by 31% to $411.9 million for the nine months ended September 30, 2025, primarily due to higher processing costs[157][158] - As a percentage of revenue, transaction expenses remained stable at 35% for both the three and nine months ended September 30, 2025[159] - Customer support and operations expenses increased by 21% to $26.4 million for the three months ended September 30, 2025, and by 20% to $74.0 million for the nine months ended September 30, 2025[160][161] - Customer support and operations expenses decreased as a percentage of revenue to 6% for both the three and nine months ended September 30, 2025, down from 7% in the same periods in 2024[162] - Marketing expenses increased by $17.0 million, or 23%, for the three months ended September 30, 2025, compared to the same period in 2024, driven by a $13.3 million increase in advertising and targeted marketing expenses[163] - Technology and development expenses rose by $12.0 million, or 17%, for the three months ended September 30, 2025, primarily due to an $8.7 million increase in personnel-related expenses[166] - General and administrative expenses increased by $5.1 million, or 10%, for the three months ended September 30, 2025, driven by a $2.3 million increase in provisions related to collectability from processing partners[169] Profitability and Cash Flow - Adjusted EBITDA for the three months ended September 30, 2025, was $61.2 million, compared to $47.4 million for the same period in 2024, reflecting a significant increase in operating performance[180] - As of September 30, 2025, cash and cash equivalents were $476.9 million, up from $368.1 million as of December 31, 2024, indicating improved liquidity[182] - For the nine months ended September 30, 2025, net cash provided by operating activities was $175.5 million, an increase from $138.9 million in the same period of 2024[188][189] - The cash generated from operations for the nine months ended September 30, 2025, included a net income of $26.7 million, excluding $142.0 million of noncash charges[188] - The company experienced a decrease in cash flow due to customer funds working capital changes of $38.0 million for the nine months ended September 30, 2025[188] Shareholder Actions - The company repurchased $11.9 million of its common stock during the three months ended September 30, 2025, as part of a $200 million share repurchase program approved in July 2025[183] Technology and Development - Investments in technology and development are expected to increase expenses but are projected to contribute to long-term growth[135] - The company expects to continue investing in technology and development to enhance customer experience and attract new customers[146] - Technology and development expenses as a percentage of revenue decreased to 19% for both the three and nine months ended September 30, 2025, from 20% and 22% in the same periods of 2024, respectively[168] Risk Management - The company’s risk management includes proprietary models and machine learning processes to address fraud and compliance risks[136] - The company mitigates foreign currency exchange rate risk by maintaining natural hedges and deploying derivatives, which have not materially impacted operations[205] Regulatory Environment - The impact of recent regulatory changes, including the One Big Beautiful Bill Act, is being evaluated, but no significant impact on business is anticipated[139][140] Financial Position - The company maintains a diversified cash balance portfolio to mitigate foreign currency risks associated with its international operations[138] - Net cash used in investing activities was $51.6 million for the nine months ended September 30, 2025, compared to $12.5 million for the same period in 2024, reflecting a $39.1 million increase[191] - Net cash used in financing activities decreased to $23.7 million for the nine months ended September 30, 2025, down from $128.9 million in 2024, a reduction of $105.2 million[193] - The company had no material off-balance sheet arrangements as of September 30, 2025, that would materially affect its financial condition[198] Currency Impact - A hypothetical 10% strengthening or weakening of the U.S. dollar would have resulted in a fair value change of approximately $25.4 million for customer transaction-related assets and liabilities as of September 30, 2025[204]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 27, 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 0-01989 Seneca Foods Corporation (Exact name of Registrant as specified in its charter) New York 1 ...

Financial Performance - Net sales for the three months ended September 27, 2025, totaled $460.0 million, an increase of $34.5 million or 8.1% compared to $425.5 million for the same period in 2024[84]. - For the six months ended September 27, 2025, net sales reached $757.5 million, reflecting a $27.3 million increase or 3.7% from $730.2 million in the prior year[87]. - Gross margin improved to 13.4% for the three months ended September 27, 2025, up from 10.1% in the same quarter of 2024, primarily due to a LIFO credit[90]. - Operating income as a percentage of net sales increased to 9.0% for the three months ended September 27, 2025, compared to 5.8% for the same period in 2024[89]. - The Company reported adjusted net earnings of $23.97 million for the six months ended September 27, 2025, compared to $35.07 million for the same period in 2024[118][119]. - EBITDA for the six months ended September 27, 2025, was $92.64 million, an increase from $77.66 million in the same period of 2024[121]. Cash Flow and Working Capital - For the six months ended September 27, 2025, cash provided by operating activities was $83.0 million, down from $125.9 million in the same period of 2024[108][109]. - The net cash used in investing activities for the six months ended September 27, 2025, was $18.6 million, primarily for capital expenditures[111]. - Net cash used in financing activities was $96.7 million for the six months ended September 27, 2025, mainly due to term loan payments and treasury stock purchases[113]. - Working capital decreased to $575.9 million as of September 27, 2025, from $669.9 million a year earlier[101]. - The current ratio was 2.59 as of September 27, 2025, compared to 2.64 in the prior year[101]. - The Company experienced an easing of working capital needs in fiscal year 2025, but adverse weather conditions led to reduced crop yields and a smaller seasonal pack, resulting in higher costs per unit[105]. - The production cycle is highly seasonal, with the majority of inventories produced from June through November, impacting cash flow and working capital needs[110][115]. Costs and Expenses - Interest expense decreased significantly from $9.0 million in the prior year quarter to $4.7 million in the current quarter, representing 1.0% of net sales[94]. - The effective tax rate for the six months ended September 27, 2025, was 23.6%, up from 22.7% in the prior year, primarily due to lower federal credits[100]. - The company experienced material cost increases due to supply chain disruptions and raw material shortages, although some factors have started to stabilize[81]. - The Company has increased steel coil purchases to mitigate supply chain challenges and inflationary pressures, impacting overall costs[104]. - The company faces rising costs and availability issues for raw materials, including fruits, vegetables, steel, and packaging[127]. - Crude oil prices are impacting distribution, packaging, and energy costs[127]. Strategic Initiatives - The company is exploring strategic acquisitions to leverage existing capabilities and enhance its business operations[103]. - The Company believes its operations and existing liquidity sources will satisfy cash requirements for at least the next twelve months[107]. - The company is managing interest rate risk through a combination of fixed and variable interest rate debt[128]. Risks and Challenges - The company is experiencing an overall labor shortage, affecting recruitment and retention of employees[127]. - There are risks associated with the expansion of the business and the integration of acquisitions into operations[127]. - The company is exposed to fluctuations in interest rates related to its revolving credit facility and Amended Term Loan A-2[128]. - The effectiveness of marketing and trade promotion programs is crucial for maintaining customer demand[127]. - The company must navigate changes in consumer preferences and local economic conditions[127]. - There are potential impacts from tariffs and governmental trade restrictions on operations[127]. - Compliance with U.S., foreign, and local governmental regulations is essential to avoid disruptions in operations[127].

Financial Performance - Total revenues for Q3 2025 were $278.6 million, an 11% increase year-over-year[1] - NUPLAZID® net product sales reached $177.5 million, up 12% from $159.2 million in Q3 2024, driven by 9% volume growth[4] - DAYBUE® net product sales were $101.1 million, an 11% increase compared to $91.2 million in Q3 2024, attributed to growth in unit sales[6] - Net income for Q3 2025 was $71.8 million, or $0.42 per diluted share, compared to $32.8 million, or $0.20 per share, in Q3 2024[9] Revenue Guidance - The company raised its 2025 total revenue guidance to a range of $1.070 to $1.095 billion, up from the previous range of $1.045 to $1.095 billion[12] - NUPLAZID net product sales guidance for 2025 is now $685 to $695 million, increased from $665 to $690 million[12] - DAYBUE net product sales guidance for 2025 is updated to $385 to $400 million, compared to the prior range of $380 to $405 million[12] Research and Development - The company initiated a Phase 2 study of ACP-204 for Lewy Body Dementia Psychosis and a Phase 3 trial of trofinetide for Rett syndrome in Japan[5] - Research and development expenses for Q3 2025 were $87.8 million, up from $66.6 million in Q3 2024, primarily due to increased clinical trial costs[7] Assets and Liabilities - Total assets increased to $1,330,771 million as of September 30, 2025, up from $1,187,756 million on December 31, 2024, representing a growth of approximately 12.0%[22] - Total current assets reached $1,076,422 million, up from $938,318 million, indicating an increase of around 14.8%[22] - Total liabilities decreased to $413,499 million from $454,963 million, showing a reduction of approximately 9.1%[22] - Total stockholders' equity increased to $917,272 million, compared to $732,793 million, representing a growth of about 25.2%[22] Cash and Investments - Cash, cash equivalents, and investment securities totaled $847.0 million as of September 30, 2025, up from $756.0 million at the end of 2024[10] - Cash, cash equivalents, and investment securities rose to $847,019 million, compared to $755,993 million, reflecting an increase of about 12.0%[22] Inventory and Receivables - Accounts receivable, net increased to $115,850 million from $98,739 million, marking a growth of approximately 17.3%[22] - Inventory levels rose to $29,097 million from $21,949 million, reflecting an increase of approximately 32.5%[22] - Long-term inventory increased to $76,888 million from $69,741 million, reflecting a growth of about 10.3%[22] Other Financial Metrics - Accrued liabilities decreased to $334,837 million from $378,678 million, indicating a decline of about 11.6%[22] - Operating lease right-of-use assets increased to $49,673 million from $46,571 million, showing a growth of approximately 4.5%[22]

Revenue Performance - Total revenues increased 21% to $65.9 million for the three months ended September 30, 2025, and increased 46% to $138.2 million for the six months ended September 30, 2025, compared to $54.5 million and $94.8 million for the same periods in 2024[126]. - The Grid business segment accounted for 83% of total revenues for both the three and six months ended September 30, 2025, down from 86% and 84% in the same periods of 2024[126]. - Grid business segment revenues increased 16% to $54.3 million for the three months ended September 30, 2025, and increased 44% to $114.4 million for the six months ended September 30, 2025, compared to $46.9 million and $79.3 million in 2024[126]. - Wind business segment revenues increased 53% to $11.5 million for the three months ended September 30, 2025, and increased 53% to $23.8 million for the six months ended September 30, 2025, compared to $7.5 million and $15.5 million in 2024[126]. - The Wind business segment accounted for 17% of total revenues for both the three and six months ended September 30, 2025, up from 14% and 16% in the same periods of 2024, with revenues increasing 53% to $11.5 million for the three months and 54% to $23.8 million for the six months[127]. Cost and Expenses - Cost of revenues increased by 17% to $45.4 million for the three months ended September 30, 2025, and by 39% to $93.3 million for the six months, while gross margin improved to 31% and 33% for the respective periods, compared to 29% in 2024[128]. - Research and development expenses rose 41% to $3.7 million for the three months and 63% to $8.0 million for the six months ended September 30, 2025, driven by higher compensation and stock-based compensation expenses[129]. - Selling, general, and administrative expenses increased 27% to $13.4 million for the three months and 42% to $27.6 million for the six months ended September 30, 2025, primarily due to higher compensation expenses[130]. Profitability - Operating income for the Wind business segment was $1.7 million and $3.2 million for the three and six months ended September 30, 2025, respectively, compared to $0.4 million and $1.3 million in the same periods of 2024[134]. - Net income was $4.8 million and $11.5 million for the three and six months ended September 30, 2025, compared to $4.9 million and $2.4 million in 2024, with the improvement driven by increased revenues and gross margins[140]. - Non-GAAP net income was $8.9 million and $20.4 million for the three and six months ended September 30, 2025, compared to $10.0 million and $13.2 million in 2024, reflecting higher revenues and gross margins[142]. Cash Flow and Liquidity - As of September 30, 2025, the company had cash and cash equivalents of $212.9 million, a significant increase from $79.5 million as of March 31, 2025[147]. - Net cash provided by operating activities was $10.6 million for the six months ended September 30, 2025, down from $16.1 million in the same period of 2024[148]. - For the six months ended September 30, 2025, net cash provided by financing activities was $124.8 million, a significant increase from cash used in financing activities of $0.1 million for the same period in 2024, primarily due to an equity raise in June 2025[149]. - The company believes it has sufficient liquidity to fund operations and capital expenditures for the next twelve months, having raised $124.6 million net of offering expenses through an equity raise in June 2025[152]. Acquisitions and Business Segments - On August 1, 2024, the company acquired Megatran, Industries, Inc. for an aggregate consideration of $61.4 million, enhancing its Grid business segment capabilities[123]. - The company operates under two market-facing business segments: Grid and Wind, allowing it to better meet the needs of power generation project developers and electric utilities[119]. - The increase in Grid business segment revenues was driven by the acquisition of NWL, increased shipments of new energy power systems, and additional ship protection systems revenues compared to prior year periods[126]. Risk Factors and Controls - There have been no material changes to the risk factors disclosed in the Annual Report for the fiscal year ended March 31, 2025[167]. - Management concluded that the disclosure controls and procedures were effective at the reasonable assurance level as of September 30, 2025[164]. - There were no changes to internal control over financial reporting during the quarter ended September 30, 2025, that materially affected the internal control[165]. Foreign Currency and Accounting - Foreign currency exchange risk is present, particularly with AMSC Austria, where a 10% fluctuation in the Euro would have an immaterial effect on consolidated financial statements[162]. - Foreign currency gains were $0.3 million for both the three and six months ended September 30, 2025, compared to losses of $0.3 million and $0.5 million for the same periods in 2024[163]. - The company is evaluating the impact of recent accounting pronouncements on its consolidated financial statements, including ASU 2023-09 and ASU 2024-02[154][155]. - The company has not made any stock repurchases during the three months ended September 30, 2025, and no shares were purchased in connection with stock-based compensation plans[168].