Financial Performance - Revenue for the three months ended September 30, 2025, was $715,183,000, representing a $24 million, or 3%, increase compared to $691,300,000 in the same period of 2024[145]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $389,708,000, compared to $348,894,000 in 2024, reflecting an increase of $40,814,000[145]. - Revenue for the nine months ended September 30, 2025, was $2,099,983, a slight decrease of $4 million or 0.2% compared to $2,104,458 in the same period of 2024[155]. - Cash used in operating activities for the nine months ended September 30, 2025, was $(248,155,000), compared to $(5,463,000) in 2024, indicating a substantial increase in cash outflow[145]. - Free Cash Flow for the nine months ended September 30, 2025, was $(307,574,000), compared to $(70,304,000) in 2024, indicating a significant increase in cash used[145]. Cost Management - Cost of revenue, excluding technology costs, increased by $18 million, or 6%, to $313,074,000 for the three months ended September 30, 2025, compared to $294,656,000 in 2024[148]. - Technology costs decreased by $21 million, or 11%, to $168,009,000 for the three months ended September 30, 2025, down from $189,417,000 in 2024[149]. - Selling, general and administrative expenses decreased by $9 million, or 6%, to $140,475,000 for the three months ended September 30, 2025, compared to $149,386,000 in 2024[150]. - Cost of revenue, excluding technology costs, increased by $34 million or 4% to $914,899 for the nine months ended September 30, 2025, primarily due to a $35 million increase in incentive consideration[155]. - Technology costs decreased by $74 million or 13% to $515,810 for the nine months ended September 30, 2025, due to reductions in labor, professional services, and hosting costs[156]. - Selling, general and administrative expenses decreased by $34 million or 8% to $399,595 for the nine months ended September 30, 2025, primarily due to a decrease in tax litigation reserves and indirect taxes[158]. Debt and Financing - The sale of the Hospitality Solutions business generated cash proceeds of $965 million, primarily used to repay outstanding debt[125]. - As of September 30, 2025, the company's outstanding debt totaled $4.2 billion, net of debt issuance costs and unamortized discounts of $106 million[173]. - Approximately 13% of the company's debt is variable, which may increase future interest expenses due to rising interest rates[128]. - The company recognized a loss on extinguishment of debt of $85 million during the nine months ended September 30, 2025, compared to a loss of $38 million in the same period of 2024[160]. - The company incurred additional indebtedness of $100 million as a result of the June 2025 Refinancing, recognizing a loss on extinguishment of debt of approximately $85 million[180]. - The company entered into a third and fourth amendment to the Amended and Restated Credit Agreement on November 25, 2024, exchanging $775 million of existing senior secured term loans for new loans maturing on November 15, 2029[179]. Operational Insights - Direct billable bookings for Air increased by 2.4% year-over-year to 80,542 in Q3 2025, while total direct billable bookings rose by 2.5% to 95,135[135]. - IT solutions passengers boarded grew by 2.8% year-over-year to 182,212 in Q3 2025, with modest growth expected for the remainder of the year[135]. - Revenue from IT solutions has leveled off relative to prior year amounts, with modest growth expected following the anniversary of prior de-migrations[127]. - The company anticipates that the U.S. government shutdown will negatively impact air distribution volumes in Q4 2025[126]. - The company has established strategic priorities to achieve sustainable long-term growth in response to changing needs in the travel ecosystem[126]. Cash Flow and Investments - Cash provided by discontinued operations was $1,035 million for the nine months ended September 30, 2025[188]. - Cash used in investing activities was $59 million for the nine months ended September 30, 2025, primarily for software development[190]. - Financing activities used $804 million for the nine months ended September 30, 2025, including significant debt repayments totaling $806 million[192]. - The company expects pro forma free cash flow for the full year 2025 to be approximately $70 million, impacted by normal seasonality[168]. Tax and Regulatory Matters - The effective tax rate for the nine months ended September 30, 2025, was influenced by changes in valuation allowances and geographic mix of taxable income, resulting in a provision for income taxes of $21 million[162]. - The company monitors digital services taxes (DST) legislation globally, recording DST in selling, general and administrative costs[172].

Revenue Sources - In the three and nine months ended September 30, 2025, the Electricity segment generated 70.8% and 71.8% of its revenues from U.S. operations, while 29.2% and 28.2% came from international operations[142] - The Product segment derived 4.9% and 6.4% of its revenues from U.S. operations, with 95.1% and 93.6% from the rest of the world during the same period[142] - The Energy Storage segment reported all its revenues from U.S. operations in the three and nine months ended September 30, 2025[142] - For the nine months ended September 30, 2025, foreign operations accounted for 40.2% of total revenues, compared to 36.4% in 2024[154] Revenue Growth - For the nine months ended September 30, 2025, total revenues increased by 10.0% to $713.5 million compared to $648.9 million in the same period of 2024[152] - Total revenues for the three months ended September 30, 2025, were $249.7 million, an increase of 17.9% from $211.8 million in the same period of 2024[160] - The Product segment saw a revenue increase of 53.6%, reaching $153.6 million for the nine months ended September 30, 2025, up from $100.0 million in 2024[193] - Energy Storage segment revenues increased by 96.5% to $52.6 million for the nine months ended September 30, 2025, compared to $26.8 million in 2024[194] Segment Performance - Electricity segment revenues for the three months ended September 30, 2025, were $167.1 million, a 1.5% increase from $164.6 million in the same period of 2024[152] - Energy Storage segment revenues increased by 108.1% to $20.4 million for the three months ended September 30, 2025, compared to $9.8 million in the same period of 2024[152] - The Product segment saw a significant increase in foreign revenues, reaching $59.2 million for the three months ended September 30, 2025, a 73.4% increase from $34.2 million in 2024[160] Operational Developments - The company commenced commercial operations of a 60MW/120MWh energy storage facility in Texas in September 2025, under a seven-year tolling agreement[142] - A strategic commercial agreement was signed with Sage Geosystems Inc. in August 2025 to pilot advanced pressure geothermal technology, expected to enhance operational efficiency[142] - The company signed two Geothermal Exploration and Energy Conversion Agreements with PLN in Indonesia, each covering up to 20 MW of geothermal capacity[142] - A 25-year extension to the existing power purchase agreement with SCPPA for the 52MW Heber 1 geothermal facility was announced, effective February 2026[142] Financial Performance - The gross profit for the Electricity segment decreased to $42.5 million for the three months ended September 30, 2025, down from $49.7 million in 2024[160] - Operating income for the three months ended September 30, 2025, was $40.4 million, compared to $35.7 million in the same period of 2024[160] - Net income attributable to the Company's stockholders for the three months ended September 30, 2025, was $24.1 million, an increase from $22.1 million in 2024[160] - Net income attributable to the Company's stockholders for the nine months ended September 30, 2025, was $92.5 million, an increase of 11.6% from $82.9 million for the same period in 2024[215] Cost and Expenses - Total cost of revenues increased by 21.4% to $185.7 million, with the Electricity segment's cost rising by 8.4% to $124.6 million[169] - General and administrative expenses decreased to $20.2 million, constituting 8.1% of total revenues, down from 10.8% in the prior year[176] - Research and development expenses for the three months ended September 30, 2025, were $1.3 million, a decrease from $1.8 million in 2024[160] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the nine months ended September 30, 2025, was $252.3 million, compared to $230.1 million in 2024[236] - The Company entered into new loan agreements totaling $337.6 million during the nine months ended September 30, 2025[221] - Estimated capital needs for the remainder of 2025 include $140 million for capital expenditures and $60.6 million for long-term debt repayment[218] - The company has budgeted approximately $558.0 million in capital expenditures for new projects and enhancements, with $266.0 million already invested as of September 30, 2025[252] Debt and Financial Obligations - The outstanding carrying value of long-term debt owed by SOL and Ijen was $645.3 million and $105.0 million, respectively, as of September 30, 2025[243] - Future minimum cash payments under long-term obligations total $2,779.6 million as of September 30, 2025[228] - The Company has a 12-month debt to Adjusted EBITDA ratio of 4.42 as of September 30, 2025[224] Risk Factors - The company is exposed to foreign currency exchange risk, particularly with fluctuations in the U.S. dollar against the New Israeli Shekel, Euro, and New Zealand Dollar[260] - Inflation has increased overall operating costs from early 2022 until 2024, impacting profit margins, although some contracts include provisions to mitigate inflation risk[268] - The company has a concentration of credit risk with major customers, including Sierra Pacific Power Company and Nevada Power Company, which accounted for 12.1% and 15.1% of total revenues for the nine months ended September 30, 2025, respectively[272]

Financial Performance - MGE Energy reported GAAP earnings of $44.5 million, or $1.22 per share, for Q3 2025, up from $40.9 million, or $1.13 per share, in Q3 2024, representing a 8.8% increase in earnings per share [2]. - Operating revenues for Q3 2025 were $175.7 million, compared to $168.5 million in Q3 2024, reflecting a growth of 4.3% [7]. - For the nine months ended September 30, 2025, net income was $112.6 million, up from $98.5 million in the same period of 2024, marking a 14.3% increase [7]. - MGE Energy's operating income for Q3 2025 was $51.1 million, compared to $48.1 million in Q3 2024, indicating a 4.0% increase [7]. - The weighted average shares outstanding for basic earnings per share increased from 36,181 in Q3 2024 to 36,542 in Q3 2025 [7]. Strategic Investments - Electric segment earnings increased by $1.3 million due to strategic capital investments and successful renewable energy projects, including the operational Darien Solar Project and Paris Battery Energy Storage System [3]. - Non-utility investment gains contributed approximately $2.2 million to higher earnings, supporting early-stage companies in smart technologies and sustainability [4]. - MGE Energy emphasizes its commitment to sustainability and advancing smart technologies through its venture capital investments [4]. Customer Base - The company has a customer base of 167,000 for electricity and 178,000 for natural gas across several counties in Wisconsin [8]. Forward-Looking Guidance - The company has not provided specific forward-looking guidance but acknowledges inherent uncertainties in future expectations [9].

Financial Performance - Total revenues for Q3 2025 were $6,351 million, a decrease of 5.9% compared to $6,751 million in Q3 2024[8] - Net income attributable to AIG for Q3 2025 was $519 million, up from $459 million in Q3 2024, representing a 13.1% increase[8] - Basic income per common share attributable to AIG common shareholders was $0.94 for Q3 2025, compared to $0.72 for Q3 2024, reflecting a 30.6% increase[8] - Comprehensive income attributable to AIG for Q3 2025 was $1,021 million, compared to $2,302 million in Q3 2024, a decrease of 55.6%[10] - Net income for the nine months ended September 30, 2025, was $2,366 million, a significant improvement compared to a net loss of $1,827 million for the same period in 2024[15] Investment Income - Total net investment income for Q3 2025 was $772 million, down from $973 million in Q3 2024, a decline of 20.7%[8] - The company reported net realized losses of $490 million in Q3 2025, compared to net realized losses of $167 million in Q3 2024[8] - The company reported unrealized gains in earnings of $537 million for the nine months ended September 30, 2025[15] Expenses and Losses - Losses and loss adjustment expenses incurred in Q3 2025 were $3,391 million, a decrease of 10.1% from $3,773 million in Q3 2024[8] - Total benefits, losses, and expenses for Q3 2025 were $5,637 million, down from $6,102 million in Q3 2024, a decrease of 7.6%[8] - The company experienced a net loss on sales of securities available for sale and other assets amounting to $539 million for the nine months ended September 30, 2025[15] Cash Flow and Equity - Cash flows from operating activities for continuing operations were $2,678 million for the nine months ended September 30, 2025, compared to $3,252 million in 2024[15] - Total cash and restricted cash at the end of the period was $1,594 million, slightly up from $1,559 million at the end of September 2024[17] - AIG's total equity at the end of the period was $41,117 million, a decrease from $45,073 million at the end of September 2024[13] Stock and Dividends - The company declared dividends on common stock of $0.45 per share for Q3 2025, up from $0.40 per share in Q3 2024[12] - Dividends on common stock were $734 million for the nine months ended September 30, 2025, compared to $758 million in 2024[15] - Common stock purchases totaled $5,252 million in the nine months ended September 30, 2025, compared to $4,830 million in the same period of 2024[15] Debt and Financing - The company issued long-term debt amounting to $1,241 million during the nine months ended September 30, 2025[15] - AIG's cash paid for interest during the period was $268 million, down from $581 million in the previous year[17]

Financial Performance - Total revenues for the three months ended September 30, 2025, increased to $379,745,000, up 49.5% from $253,912,000 for the same period in 2024[34] - Natural gas sales for the nine months ended September 30, 2025, reached $759,543,000, a 54.1% increase compared to $492,606,000 for the same period in 2024[37] - Net income attributable to common stockholders for the three months ended September 30, 2025, was $81,407,000, compared to a loss of $15,060,000 in the same period of 2024[34] - The company reported a net income of $295,395,000 for the nine months ended September 30, 2025, compared to $11,856,000 for the same period in 2024[37] - The company reported a net loss of $13,967,000 for the quarter ending September 30, 2024, compared to a net loss of $26,212,000 for the previous quarter[40] - The company reported a net income of $111.4 million for Q3 2025, resulting in a basic EPS of $4.49, compared to a net loss of $14.0 million and an EPS of $(0.83) in Q3 2024[117] - For the nine months ended September 30, 2025, net income was $295.4 million, leading to a basic EPS of $14.73, compared to $11.9 million and an EPS of $0.40 in the same period of 2024[119] Assets and Liabilities - Total assets as of September 30, 2025, were $2,934,995,000, an increase from $2,865,697,000 as of December 31, 2024[32] - Total liabilities decreased slightly to $1,100,686,000 as of September 30, 2025, from $1,116,956,000 as of December 31, 2024[32] - The company’s cash and cash equivalents increased to $3,367,000 as of September 30, 2025, from $1,473,000 as of December 31, 2024[32] - Accounts payable and accrued liabilities totaled $313,900 as of September 30, 2025, compared to $298,081 at the end of 2024, indicating an increase of about 5.3%[54] - Total long-term debt, net, decreased from $702,857,000 as of December 31, 2024, to $691,666,000 as of September 30, 2025[70] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the nine months ended September 30, 2025, was $617,761, compared to $501,185 in 2024, reflecting an increase of about 23.2%[55] - Capital expenditures for the nine months ended September 30, 2025, totaled $415,639, compared to $393,563 in 2024, showing an increase of approximately 5.6%[61] - The Company plans to invest approximately $355.0 million in operated base drilling and completion capital expenditures for 2025[241] - The Company incurred total lease costs of $24.96 million for the nine months ended September 30, 2025, compared to $30.99 million in 2024[168] Shareholder Activities - The company reported a total of 19.5 million common shares outstanding as of September 30, 2025, compared to 17.8 million as of December 31, 2024[32] - The Share Repurchase Program was increased to $1.5 billion and extended through December 31, 2026[99] - In Q3 2025, the company repurchased 438,266 shares for a total dollar value of $76.3 million, with an average price of $174.01 per share, compared to 341,132 shares for $49.9 million at an average price of $146.17 in Q3 2024[100] - For the nine months ended September 30, 2025, the company repurchased 1,117,816 shares for $201.3 million at an average price of $180.05 per share, up from 711,829 shares for $104.4 million at an average price of $146.60 in the same period of 2024[101] - Since the inception of the Repurchase Program, the company has repurchased a total of 6.7 million shares for $785.4 million at a weighted average price of $117.45 per share[102] Derivative Instruments and Commitments - The company has volume commitments for natural gas delivery totaling 168,000 MMBtu per day, with 80,000 MMBtu per day expected in the remaining 2025[125] - The company has entered into fixed price swap contracts for natural gas with a daily volume of 270,000 MMBtu at an average price of $3.82 per MMBtu for the remaining 2025[140] - The company has a costless collar position for natural gas with a daily volume of 240,000 MMBtu, having a floor price of $3.42 and a ceiling price of $4.27 for the remaining 2025[142] - The company has total commitments related to firm transportation and gathering agreements amounting to $1,079,040,000[123] Legal and Regulatory Matters - The company is involved in various litigation and regulatory proceedings, with total accrued liabilities estimated on a case-by-case basis, indicating potential financial impacts[127] - The company has a consent agreement with the USEPA resolving violations for $454,403 as of September 30, 2025[129] - The company has been named in lawsuits alleging underpayment of royalties, with potential liabilities currently indeterminate[131] Accounting and Tax Matters - The effective income tax rate was 22.0% for the three months ended September 30, 2025, compared to 21.5% for the same period in 2024[171] - The Company has an $82.4 million valuation allowance associated with its federal and state deferred tax assets[172] - There have been no significant changes in the Company's critical accounting policies from those disclosed in the 2024 Annual Report on Form 10-K as of September 30, 2025[255] Stock-Based Compensation - The stock-based compensation expense for Q3 2025 was $4.4 million, compared to $4.0 million in Q3 2024, with total expenses for the nine months reaching $13.8 million versus $12.6 million in the prior year[104] - The aggregate fair value of share-based awards that vested in Q3 2025 was approximately $2.1 million, down from $6.3 million in Q3 2024, while for the nine months, it was $28.9 million compared to $55.5 million in the previous year[109] - As of September 30, 2025, unrecognized compensation expense related to restricted stock units was $15.4 million, expected to be recognized over a weighted average period of 1.9 years[111] - Unrecognized compensation expense related to performance vesting restricted stock units was $9.3 million, expected to be recognized over a weighted average period of 1.75 years[113]

Financial Performance - Total revenues for Q3 2025 reached $447.34 million, a 4.8% increase from $427.96 million in Q3 2024[12] - Net income for the nine months ended September 30, 2025, was $306.26 million, compared to $223.86 million for the same period in 2024, reflecting a 37% increase[12] - Basic earnings per share for Q3 2025 were $3.89, up from $2.24 in Q3 2024, representing a 73.2% increase[12] - Operating income for the nine months ended September 30, 2025, was $346.95 million, slightly up from $344.55 million in the same period of 2024[12] - Net income for Q3 2025 reached $179,996,000, up 70% from $105,716,000 in Q3 2024[68] - The company reported a net income available to common shareholders of $304,786,000 for the nine months ended September 30, 2025, compared to $222,726,000 for the same period in 2024, a 37% increase[68] - For the nine months ended September 30, 2025, revenues totaled $1.206 billion, compared to $1.195 billion for the same period in 2024, representing a 0.9% increase[74] - The company experienced a net income of $44,534,000 for the year ending December 31, 2024[21] Assets and Liabilities - Cash and cash equivalents increased to $52.58 million as of September 30, 2025, from $40.18 million at the end of 2024[16] - Total assets grew to $2.91 billion as of September 30, 2025, compared to $2.53 billion at the end of 2024, marking a 14.9% increase[16] - Long-term debt increased to $1.92 billion as of September 30, 2025, from $1.77 billion at the end of 2024[16] - The total outstanding shares decreased from 49,284,204 as of March 31, 2024, to 46,959,039 as of September 30, 2024[20] - The accumulated deficit increased to $2,386,893,000 as of September 30, 2024, compared to $2,332,736,000 as of June 30, 2024[20] Dividends and Share Repurchases - The company declared cash dividends of $0.2875 per share for Q3 2025, consistent with Q3 2024[12] - The company declared dividends of $0.2875 per share, totaling $13,499,000 for the quarter ending September 30, 2024[20] - Cash dividends paid during the nine months ended September 30, 2025, amounted to $40.2 million, with projected annual dividends of approximately $53.5 million for the year ended December 31, 2025[171] - The Company repurchased 0.7 million shares at a total cost of $100.4 million during the nine months ended September 30, 2025, bringing total repurchases to 62.0 million shares for $2.7 billion[173] Revenue Streams - Loyalty net revenues for the three months ended September 30, 2025, were $31.8 million, compared to $23.7 million for the same period in 2024, representing a 34% increase[39] - Franchise and management fees rose to $193.8 million, an increase of 2.9% from $188.2 million in the same quarter of 2024[114] - Domestic royalty fees decreased by $6.9 million to $342.5 million, primarily due to a 1.7% decrease in domestic system-wide RevPAR[129] Acquisitions and Investments - The company reported a gain from an acquisition of a joint venture amounting to $100.03 million in Q3 2025[12] - The Company recognized a gain of approximately $100.0 million from the acquisition of Choice Hotels Canada, which was accounted for as a business combination[80] - The Company acquired the remaining 50% of Choice Hotels Canada for $73.4 million on July 2, 2025, funded through available cash and borrowings[151] Operational Metrics - The company’s performance metrics include revenue per available room (RevPar), occupancy, and average daily room rate (ADR) for assessing segment performance[72] - The company experienced a 3.2% decrease in domestic system-wide RevPAR, attributed to a 2.0% decrease in average daily rates and an 80 basis points decrease in occupancy[117] Future Outlook and Strategic Initiatives - Future outlook includes a projected revenue increase of 10% for Q4 2025, driven by new hotel openings and enhanced marketing strategies[200] - The company is investing $50 million in technology upgrades to improve customer experience and operational efficiency[200] - Market expansion plans include entering three new international markets by the end of 2026[200] - The company is focusing on sustainability initiatives, with a goal to reduce carbon emissions by 30% by 2030[200] Tax and Regulatory Matters - The effective income tax rate for the nine months ended September 30, 2025, was 19.3%, down from 23.8% for the same period in 2024, primarily due to a $100.0 million non-taxable gain from a joint venture acquisition[65] - The effective income tax rate for the three months ended September 30, 2025, was 14.7%, significantly lower than the 22.9% rate in the same period of 2024[124] Miscellaneous - The Company completed the implementation of a new ERP and EPM system, which is expected to strengthen internal controls over financial reporting[185] - The Company is not a party to any material litigation that could adversely affect its financial position[188]

Revenue and Sales Performance - Total revenues increased by $4.5 million, or 1.4%, to $330.2 million during the thirteen weeks ended September 30, 2025, compared to $325.7 million in the same period of 2024[83]. - Total revenues for the thirty-nine weeks ended September 30, 2025, increased by $30.8 million, or 3.0%, to $1.04 billion[94]. - Comparable restaurant sales increased by 1.8%, or $17.7 million, with guest traffic up approximately 2.2%[94]. Cost of Sales and Expenses - Cost of sales decreased by $1.8 million, or 2.0%, to $84.9 million, representing 25.7% of revenues, down from 26.6% in the prior year[84]. - Cost of sales for the thirty-nine weeks increased by $1.1 million, or 0.4%, to $262.5 million[95]. - Labor and benefit costs increased by $1.6 million, or 1.3%, to $122.3 million, maintaining a consistent percentage of 37.1% of revenues[85]. - Labor and benefit costs increased by $5.3 million, or 1.4%, to $377.4 million, with labor costs as a percentage of revenues decreasing to 36.2% from 36.7%[97]. - Occupancy and operating expenses rose by $1.3 million, or 1.6%, to $81.6 million, remaining at 24.7% of revenues[86]. - Occupancy and operating expenses rose by $8.1 million, or 3.4%, to $244.8 million, with these expenses as a percentage of revenues increasing to 23.5% from 23.4%[98]. - General and administrative expenses increased by $1.5 million, or 7.0%, to $22.4 million, with a percentage of revenues rising to 6.8% from 6.4%[87]. - General and administrative expenses increased by $1.4 million, or 2.1%, to $65.9 million, with these expenses as a percentage of revenues decreasing to 6.3% from 6.4%[99]. - Depreciation and amortization increased by $1.1 million, or 6.1%, to $19.3 million, accounting for 5.8% of revenues[88]. Net Income and Cash Flow - Net income for the thirteen weeks ended September 30, 2025, was 0.1%, compared to a loss of (0.9)% in the prior year[82]. - Net cash provided by operating activities was $91.96 million, a $22.1 million increase from the prior year[110]. - Net cash used in investing activities was $58.5 million, a $2.6 million decrease from the prior year, with total capital expenditures for fiscal 2025 anticipated to be approximately $65 million to $75 million[111]. - Net cash used in financing activities increased by $14.7 million to $34.2 million, primarily due to increased share repurchases[113]. Tax and Future Plans - The effective income tax rate for the thirty-nine weeks ended September 30, 2025, was an expense of 0.5%, compared to a benefit of 15.0% for the prior year[105]. - The company plans to open two new restaurants in the second half of 2026 and remodel approximately 20 existing locations in fiscal 2025[106]. Financial Position and Risks - Cash and cash equivalents decreased to $25.4 million from $26.1 million, with a current ratio of 0.4:1.0[106]. - The company has a $215 million Credit Facility, with $89.5 million outstanding as of September 30, 2025, which carries a floating interest rate[121]. - A hypothetical 1% change in interest rates under the Credit Facility would impact the company's net income by approximately $0.7 million annually[121]. - The company is exposed to risks related to food, supplies, and commodity prices due to market price fluctuations and potential supply chain disruptions[122]. - The company attempts to manage commodity price risks by entering into fixed-price purchase commitments, typically up to one year[122]. - The company believes that substantially all food and supplies are available from multiple sources, helping to diversify overall commodity cost risk[122]. - The company has some flexibility to increase menu prices or vary menu items in response to food commodity price increases[122]. - Certain commodity purchase arrangements may include contractual features that establish price floors or caps[122]. - The company does not use financial instruments to hedge commodity prices, relying instead on supplier arrangements to control costs[122].

Financial Performance - For the quarter ended September 30, 2025, LivaNova reported a revenue of $250 million, representing a 15% increase year-over-year[2]. - The company achieved a gross margin of 60%, up from 55% in the same quarter last year, indicating improved operational efficiency[2]. - LivaNova's Cardiopulmonary segment generated $120 million in revenue, a 20% increase compared to the previous year, driven by strong demand for its advanced circulatory support products[2]. - The Neuromodulation segment reported $80 million in revenue, reflecting a 10% growth, attributed to the successful launch of new VNS Therapy systems[2]. - Net revenue for the three months ended September 30, 2025, was $357.753 million, an increase from $318.120 million in the same period of 2024, representing a growth of 12.9%[18]. - Gross profit for the nine months ended September 30, 2025, reached $700.097 million, compared to $639.115 million in 2024, reflecting an increase of 9.5%[18]. - Operating income for the three months ended September 30, 2025, was $54.012 million, up from $35.618 million in 2024, marking a growth of 51.5%[18]. - The company reported a net loss for the nine months ended September 30, 2025, of $273.377 million, compared to a net income of $7.343 million in 2024[20]. - Basic income (loss) per share for the three months ended September 30, 2025, was $0.49, down from $0.61 in the same period of 2024[18]. - The company reported a comprehensive income of $24.179 million for the three months ended September 30, 2025, compared to $59.069 million in 2024[20]. Cash and Liquidity - LivaNova's cash and cash equivalents stood at $100 million, providing a solid liquidity position to support future growth initiatives[2]. - Cash and cash equivalents at the end of the period on September 30, 2025, totaled $646.079 million, an increase from $428.858 million at December 31, 2024[23]. - Cash and cash equivalents increased to $646.1 million as of September 30, 2025, compared to $428.9 million on December 31, 2024, representing a growth of 50.7%[97]. Debt and Capital Structure - The company has repurchased $230 million of its 2025 Notes, optimizing its capital structure and reducing interest expenses[2]. - Total long-term debt obligations amounted to $349.031 million as of September 30, 2025, a decrease from $549.624 million as of December 31, 2024[47]. - The company reported a total of $434.454 million in long-term facilities as of September 30, 2025, down from $626.963 million at the end of 2024[47]. - The effective interest rate of the 2029 Notes was reported at 9.84% as of September 30, 2025[52]. - The effective interest rate of the 2025 Notes was 9.92% as of September 30, 2025, with an unamortized debt discount of $0.8 million[54]. Research and Development - The company has invested $30 million in R&D for the development of new technologies, including enhancements to its VNS Therapy and advanced circulatory support systems[2]. Market Expansion and Strategy - LivaNova plans to expand its market presence in Asia, targeting a 25% increase in sales in the region over the next two years[2]. - LivaNova anticipates revenue growth of 10-12% for the next fiscal year, driven by new product launches and market expansion strategies[2]. Environmental and Legal Liabilities - The company incurred a SNIA environmental liability expense of $394.587 million as of September 30, 2025, which was not present in the previous reporting period[23]. - As of September 30, 2025, LivaNova recorded a current liability of €336.3 million ($394.6 million) related to environmental liabilities from the SNIA matter[65]. - The estimated liability for cleaning and dismantling contaminated buildings and equipment was $40.3 million (€34.3 million) as of September 30, 2025, with a maximum estimated loss of $55.2 million (€47.0 million)[57]. - LivaNova's provision for product liability litigation increased to $19.8 million as of September 30, 2025, up from $15.8 million as of December 31, 2024[69]. - The Italian Supreme Court ruled that LivaNova can be held jointly and severally liable for SNIA's established liabilities, leading to a significant current liability on the balance sheet[64]. Cybersecurity Incident - LivaNova incurred direct costs of $13.1 million related to a cybersecurity incident, with $1.5 million for the nine months ended September 30, 2025[27]. - The company received $9.6 million in insurance reimbursements, including $6.2 million for direct costs and $3.4 million for business interruption losses[27]. - LivaNova's insurance coverage may be insufficient to cover all costs related to the cybersecurity incident[27]. - The company expects all settlement administration activities related to the cybersecurity incident to be completed in 2025, with an accrual of $1.2 million recorded for the class action settlement[72]. Stockholder Equity and Compensation - LivaNova's stockholders' equity as of September 30, 2025, was $1,157,230,000, a decrease from $1,310,044,000 as of September 30, 2024[75]. - For the nine months ended September 30, 2025, LivaNova recognized stock-based compensation expense of $26,904,000, compared to $26,984,000 for the same period in 2024[81]. - The company issued stock-based compensatory awards totaling $6,000,000 for the nine months ended September 30, 2025[80]. - As of September 30, 2025, there were 259,423 shares available for future grants under the 2025 Director Incentive Plan[79]. Segment Performance - Net revenue for the Cardiopulmonary segment in Q3 2025 was $203.2 million, a 17.9% increase from $172.2 million in Q3 2024[91]. - Neuromodulation segment revenue for Q3 2025 reached $149.5 million, up 6.3% from $139.9 million in Q3 2024[91]. - Segment income for Cardiopulmonary in Q3 2025 was $24.7 million, up from $21.7 million in Q3 2024, while Neuromodulation segment income increased to $56.2 million from $49.5 million[92]. Miscellaneous - The company identified and corrected an immaterial error in employee cost classification, with no impact on operating income or net income for prior periods[28]. - The company expects the new accounting standards to have no material effect on its consolidated financial statements[99]. - A correction was made to previously issued financial statements, adjusting cost of sales for the twelve months ended December 31, 2024, by $17.4 million[101].

Financial Performance - Net income for the three months ended September 30, 2025, was $318 million, compared to $214 million for the same period in 2024, representing a 48.6% increase[84]. - Comprehensive income for the nine months ended September 30, 2025, was $906 million, up from $711 million in 2024, indicating a 27.4% growth[84]. - Net income for the nine months ended September 30, 2025, increased to $915 million, up 28.7% from $711 million in the same period of 2024[95]. - Net income for the nine months ended September 30, 2025, increased to $244 million, up from $232 million in the same period of 2024, representing a growth of 5.2%[108]. - Net income for the nine months ended September 30, 2025, increased to $312 million, up from $283 million in 2024, representing a growth of 10.3%[119]. - PPL's net income available to common shareholders for the nine months ended September 30, 2025, was $913 million, compared to $709 million in 2024, a 28.7% increase[160]. Revenue Growth - Operating revenues for the nine months ended September 30, 2025, were $2,298 million, a 6.4% increase compared to $2,159 million in 2024[95]. - Total consolidated revenues for the three months ended September 30, 2025, were $2,239 million, with segment net income of $371 million[133]. - For the nine months ended September 30, 2025, total consolidated revenues reached $6,768 million, with a segment net income of $1,096 million[134]. - Revenues from contracts with customers for the nine months ended September 30, 2025, reached $6,823 million, compared to $6,254 million for the same period in 2024, indicating a 9.1% increase[150]. - The total operating revenues for PPL for the nine months ended September 30, 2025, were $6,768 million, compared to $6,251 million in 2024, reflecting an 8.2% increase[145]. Cash Flow and Assets - Cash flows from operating activities for the nine months ended September 30, 2025, were $2,081 million, compared to $1,829 million in 2024, reflecting a 13.8% increase[86]. - Total current assets as of September 30, 2025, rose to $3,632 million, a significant increase from $2,880 million at the end of 2024[87]. - Total assets increased to $43,939 million as of September 30, 2025, compared to $41,069 million at the end of 2024, marking a growth of 6.9%[89]. - Cash and cash equivalents increased to $1,102 million as of September 30, 2025, compared to $306 million at the end of 2024, representing a substantial growth of 260.1%[87]. Debt and Equity - Long-term debt as of September 30, 2025, was $16,936 million, up from $15,952 million at the end of 2024, indicating a 6.2% increase[89]. - Total equity increased to $7,354 million as of September 30, 2025, from $6,730 million at the end of 2024, reflecting a growth of 9.3%[100]. - Long-term debt increased to $5,707 million as of September 30, 2025, compared to $5,214 million at the end of 2024, marking an increase of 9.5%[100]. - The company issued long-term debt of $1,895 million during the nine months ended September 30, 2025, compared to $1,894 million in the same period of 2024[86]. Dividends - Dividends paid for the nine months ended September 30, 2025, totaled $593 million, an increase from $557 million in 2024, reflecting a 6.5% rise[86]. - The company declared dividends of $298 million for the nine months ended September 30, 2025, compared to $283 million in 2024, representing a 5.3% increase[102]. - The company declared dividends totaling $179 million for the nine months ended September 30, 2025, compared to $167 million in 2024, an increase of 7.2%[124]. Strategic Focus and Future Outlook - The fiscal year 2025 net income reflects strong operational performance and effective cost management strategies[84]. - The company continues to focus on strategic acquisitions and market expansion to enhance growth opportunities[77]. - Future outlook includes potential impacts from regulatory changes and market conditions affecting electricity demand[77]. - The company is committed to developing new projects and technologies to improve operational efficiency and sustainability[81]. - Ongoing efforts to manage risks related to climate change and regulatory compliance are a priority for the company[81]. Regulatory and Compliance Issues - LG&E and KU filed for an increase in annual electricity and gas revenues of approximately $391 million, representing increases of 8.3% and 11.5% in electricity revenues and 14.0% in gas revenues[175]. - The proposed revenue increase from LG&E and KU is revised to approximately $235 million, with $58 million and $132 million in electricity revenues at LG&E and KU, respectively[177]. - The agreement includes a "stay out" commitment to refrain from effective base rate increases before August 1, 2028[178]. - The EPA announced a plan to reconsider 31 environmental rules, which may affect PPL, LG&E, and KU's capital expenditures and regulatory compliance[230].

Financial Performance - Humana reported net income of $195 million, or $1.62 per diluted common share, for the three months ended September 30, 2025, compared to $480 million, or $3.98 per diluted common share, for the same period in 2024[137]. - For the nine months ended September 30, 2025, net income attributable to Humana was $2.0 billion, or $16.43 per diluted common share, compared to $1.9 billion, or $15.72 per diluted common share, for the same period in 2024[137]. - The total consolidated income before income taxes for the three months ended September 30, 2025, was $442 million, compared to a loss of $4 million in the same period in 2024[136]. - Net income decreased by $286 million, or 59.6%, from $480 million in Q3 2024 to $194 million in Q3 2025, and increased by $82 million, or 4.3%, from $1.897 billion in the first nine months of 2024 to $1.979 billion in 2025[147]. - The effective tax rate was (77.3)% for Q3 2025, compared to 24.4% for Q3 2024, reflecting the impact of a tax loss on the sale of business[153]. Revenue and Expenses - Consolidated premiums revenue increased by $2.8 billion, or 9.9%, from $28.0 billion in Q3 2024 to $30.7 billion in Q3 2025, and by $7.6 billion, or 9.0%, from $84.4 billion in the first nine months of 2024 to $91.9 billion in 2025[144]. - Consolidated services revenue rose by $0.5 billion, or 45.1%, from $1.1 billion in Q3 2024 to $1.6 billion in Q3 2025, and by $1.1 billion, or 32.7%, from $3.3 billion in the first nine months of 2024 to $4.3 billion in 2025[145]. - Consolidated benefits expense increased by $2.9 billion, or 11.4%, from $25.1 billion in Q3 2024 to $28.0 billion in Q3 2025, and by $6.8 billion, or 9.0%, from $75.3 billion in the first nine months of 2024 to $82.1 billion in 2025[147]. - Consolidated operating costs increased by $0.7 billion, or 22.3%, from $3.3 billion in Q3 2024 to $4.1 billion in Q3 2025, and by $1.5 billion, or 15.6%, from $9.5 billion in the first nine months of 2024 to $11.0 billion in 2025[150]. Membership and Market Position - Approximately 3,553,000 members, or 68%, of individual Medicare Advantage members were in value-based relationships as of September 30, 2025, down from 70% in 2024[137]. - Total medical membership decreased by 1,365,900, or 8.3%, from 16,358,100 in September 2024 to 14,992,200 in September 2025[154]. - Individual Medicare Advantage membership declined by 421,900, or 7.5%, from 5,659,200 in September 2024 to 5,237,300 in September 2025[154]. - Group Medicare Advantage membership increased by 23,100 members, or 4.2%, from September 30, 2024, to September 30, 2025[158]. - Medicare stand-alone PDP membership increased by 130,500 members, or 5.6%, from September 30, 2024, to September 30, 2025[158]. - State-based contracts and other membership increased by 212,700 members, or 14.7%, from September 30, 2024, to September 30, 2025[159]. Operational Changes and Initiatives - The company recorded value creation initiative charges of $267 million and $320 million for the three and nine months ended September 30, 2025, respectively[128]. - The company expects to incur additional charges in 2025 related to workforce optimization and consulting expenses[128]. - The Medicare Part D coverage gap was eliminated effective January 1, 2025, which is expected to reduce out-of-pocket costs for beneficiaries[134]. - Humana's strategy focuses on integrated care delivery, aiming for long-term growth in both membership and earnings[137]. - The company anticipates that regulatory changes may have a material adverse effect on its results of operations and financial position[139]. Capital and Cash Flow - Cash and cash equivalents increased to approximately $5.4 billion at September 30, 2025, up from $2.2 billion at December 31, 2024[171]. - Net cash provided by operating activities was $2.6 billion for the nine months ended September 30, 2025, a decrease of $0.9 billion from $3.5 billion in the same period of 2024[172]. - Total net receivables were $2.684 billion at September 30, 2025, a decrease of $20 million from $2.704 billion at December 31, 2024[174]. - The company issued $750 million of 5.550% unsecured senior notes due May 1, 2035, and $500 million of 6.000% unsecured senior notes due May 1, 2055 in March 2025[179]. - Total net capital expenditures, excluding acquisitions, were $344 million in the 2025 period, down from $421 million in the 2024 period[176]. - The company repurchased common shares for $109 million in the 2025 period, compared to $768 million in the 2024 period[183]. - Aggregate statutory capital and surplus of state-regulated subsidiaries was approximately $15.2 billion, exceeding minimum regulatory requirements of $10.9 billion[194]. - The average duration of the investment portfolio was approximately 3.4 years as of September 30, 2025, down from 3.8 years at December 31, 2024[198].