Revenue Sources - The majority of revenue is derived from testing revenue, primarily from Decipher Prostate and Afirma tests, invoiced upon delivery of patient reports to physicians [138]. - Medicare accounted for 33% of total revenue for both the three and nine months ended September 30, 2025, up from 31% in the same periods of 2024 [138]. - UnitedHealthcare represented 14% of total revenue for both the three and nine months ended September 30, 2025, consistent with the previous year [138]. - Total revenue from third-party payers exceeding 10% of total revenue was 47% for the three months ended September 30, 2025, compared to 44% in 2024 [138]. Revenue Growth - Testing revenue increased by $18.2 million (17%) for the three months ended September 30, 2025, driven by a 19% volume increase [149]. - Total revenue for the three months ended September 30, 2025, was $131.9 million, a $16.0 million (14%) increase compared to the same period in 2024 [148]. - For the nine months ended September 30, 2025, testing revenue rose by $50.5 million (16%), primarily due to a 20% volume increase [150]. Cost and Expenses - The cost of testing revenue for the three months ended September 30, 2025, was $33.8 million, an increase of $4.7 million (16%) compared to the same period in 2024 [148]. - Cost of testing revenue increased by $4.7 million, or 16%, for the three months ended September 30, 2025 compared to the same period in 2024, driven by increased testing volume and higher staffing [152]. - For the nine months ended September 30, 2025, cost of testing revenue rose by $11.5 million, or 14%, compared to the same period in 2024, attributed to similar factors as the quarterly increase [153]. - Cost of product revenue increased by $1.2 million, or 68%, for the three months ended September 30, 2025, primarily due to one-time start-up costs associated with a new contract manufacturer [154]. - Cost of biopharmaceutical and other revenue decreased by $2.0 million for the three months ended September 30, 2025, driven by a decline in biopharmaceutical services and restructuring proceedings [156]. Profitability - Gross profit for the three months ended September 30, 2025, was $91.3 million, reflecting a $12.3 million (16%) increase year-over-year [148]. - Net income for the three months ended September 30, 2025, was $19.1 million, a $4.0 million (26%) increase compared to the same period in 2024 [148]. Research and Development - Research and development expenses for the three months ended September 30, 2025, were $16.0 million, a decrease of $1.6 million (9%) compared to the same period in 2024 [148]. - Direct research and development expense decreased by $1.97 million, or 36%, for the three months ended September 30, 2025, indicating a shift in spending priorities [157]. Selling and Marketing - Selling and marketing expenses increased by $1.8 million (8%) for the three months ended September 30, 2025, totaling $24.5 million [148]. - Selling and marketing expense increased by $1.8 million, or 8%, for the three months ended September 30, 2025, primarily due to annual merit increases and headcount additions [159]. General and Administrative Expenses - General and administrative expense increased by $1.5 million for the three months ended September 30, 2025, impacted by higher stock-based compensation and professional fees [161]. - Compensation expense in general and administrative increased by 9% for the three months ended September 30, 2025, reflecting higher staffing costs [161]. - General and administrative expenses increased by $9.7 million for the nine months ended September 30, 2025, primarily due to an $8.6 million increase in professional fees and IT expenses [162]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $83.7 million, an increase from $50.6 million in the same period of 2024 [175][176]. - As of September 30, 2025, the company had cash and cash equivalents and short-term investments of $366.4 million, an increase of $77.0 million during the nine months [169]. - Cash used in investing activities for the nine months ended September 30, 2025, was $3.8 million, primarily for the purchase of property, plant, and equipment [177]. - Cash used in financing activities for the nine months ended September 30, 2025, was $4.1 million, mainly due to $14.6 million in tax payments related to restricted stock units [179]. Impairments and Other Income - A non-cash impairment charge of $20.5 million was recorded for the three months ended June 30, 2025, related to the long-lived assets of Veracyte SAS [163]. - Other income, net, decreased by $8.9 million for the three months ended September 30, 2025, primarily due to a $6.7 million loss from the deconsolidation of Veracyte SAS [164]. Economic Factors - The company faces pressure from payers to limit test utilization, which may affect revenue growth and reimbursement rates [121]. - Macroeconomic factors, including interest rate fluctuations and inflation, may impact the company's operational performance and liquidity [117]. - The company faces inflation headwinds in compensation, travel, supply, and inventory costs but does not believe inflation has materially affected its financial condition or operating results [185]. Strategic Focus - The company aims to expand its role in the cancer continuum by adding minimal residual disease (MRD) assays to its test portfolio [116]. - The integration of acquisitions is crucial for revenue growth and operational results, impacting the company's ability to scale operations effectively [122]. - The company is focused on new product development, including in vitro diagnostics (IVD) and MRD strategies, to enhance its test offerings [123]. - The company expects to incur significant expenses as it invests in the continued development of its innovation engine and early-stage products [143].

Financial Performance - Total revenue for Q3 2025 was $18,756,199, a 37.4% increase from $13,701,097 in Q3 2024[21] - Product revenue reached $18,460,660 in Q3 2025, up from $12,682,241 in Q3 2024, representing a 45.5% growth[21] - Gross profit for Q3 2025 was $6,692,372, compared to a gross loss of $1,717,738 in Q3 2024[21] - Net income for Q3 2025 was $263,487, a significant improvement from a net loss of $6,815,384 in Q3 2024[21] - The company reported a comprehensive loss of $124,851 for Q3 2025, compared to a comprehensive loss of $6,324,750 in Q3 2024[23] - The net loss for the nine months ended September 30, 2025, was $3,774,876, compared to a net loss of $10,499,551 for the same period in 2024, indicating a significant improvement[34] - Basic net loss per share for the three months ended September 30, 2025, was $0.01, compared to a loss of $0.32 in the same period of 2024[103] Assets and Liabilities - Total assets increased to $43,057,960 as of September 30, 2025, up from $36,933,982 at the end of 2024, reflecting a growth of 16.5%[19] - Current liabilities rose to $12,865,500 as of September 30, 2025, compared to $8,195,679 at the end of 2024, an increase of 57.5%[19] - Cash and cash equivalents decreased to $6,508,020 as of September 30, 2025, down from $6,794,093 at the end of 2024[19] - The company’s accumulated deficit increased to $(25,827,938) as of September 30, 2025, compared to $(22,053,061) at the end of 2024[19] - As of September 30, 2025, the total stockholders' equity was $26,339,748, reflecting an increase from $26,204,271 on June 30, 2025[27] Operating Expenses - Operating expenses for Q3 2025 totaled $6,122,270, up from $5,016,289 in Q3 2024, indicating a 22.1% increase[21] - The company reported a loss from operations of $570,102 for the three months ended September 30, 2025, compared to a loss of $6,734,027 in the same period of 2024[108] - Research and development expenses for the three months ended September 30, 2025, were $1,448,521, compared to $950,373 in 2024, representing a 52.5% increase[108] Cash Flow - The company reported net cash used in operating activities of $4,925,615 for the nine months ended September 30, 2025, compared to net cash provided by operating activities of $2,143,545 in 2024[34] - Cash and cash equivalents at the end of the period were $6,508,020, down from $9,402,608 at the end of September 2024[34] Stock and Equity - The balance of common stock increased from 21,920,779 shares on June 30, 2025, to 22,008,583 shares on September 30, 2025[27] - The Company has authorized the issuance of up to 50,000,000 shares of common stock and 10,000,000 shares of preferred stock[76] - As of September 30, 2025, there were 621,539 stock options outstanding with a weighted average exercise price of $2.80[85] - The intrinsic value of options exercised during the nine months ended September 30, 2025, was $528,143[86] - The Company granted 653,539 restricted stock units (RSUs) during the nine months ended September 30, 2025, with an average grant date fair value of $3.83[89] - Unrecognized compensation cost related to unvested RSUs as of September 30, 2025, was $2,987,924, expected to be recognized over 0.98 years[89] - Stock-based compensation expense for the nine months ended September 30, 2025, totaled $1,572,956, compared to $1,423,949 for the same period in 2024[90] Debt and Financing - As of September 30, 2025, Bressner had total outstanding debt obligations of €1,000,000 (US $1,173,116) with two term loans[75] - The interest rate on the note payable with Commerzbank AG was reduced to 3.50% with a maturity date extended to March 31, 2026[75] - The outstanding balance on the note with UniCredit Bank remained at €500,000 (US $586,558) as of September 30, 2025[75] - The balance outstanding on the domestic revolving line of credit was $1,000,000 as of September 30, 2025, with an interest rate of 7.25%[72] Market and Economic Conditions - Economic conditions in Europe have improved in 2025, but uncertainty and recession risks remain[45] - The company is closely monitoring the impacts of tariffs and supply chain disruptions on its operations[46] - The company may postpone or abandon planned investments in response to economic changes, impacting customer attraction and innovation rates[50] Customer and Revenue Concentration - Revenue from customers with non-U.S. billing addresses represented approximately 53% of the company's revenue for the three-month period ended September 30, 2025[71] - Customer concentration increased, with two customers accounting for approximately 37.2% of revenue for the three months ended September 30, 2025, compared to 13.6% in 2024[100] Inventory and Accounts Receivable - As of September 30, 2025, accounts receivable net amounted to $12,024,553, an increase from $8,177,371 as of December 31, 2024[65] - The company's inventories net totaled $15,326,919 as of September 30, 2025, compared to $13,176,156 as of December 31, 2024[68] - The provision for credit losses related to accounts receivable was $43,496 for the three-month period ended September 30, 2025, compared to $40,000 for the same period in 2024[66] - The company experienced a decrease in accounts receivable by $3,334,841 for the nine months ended September 30, 2025, compared to a decrease of $1,003,287 in 2024[34] Lease and Purchase Obligations - The Company has extended its lease in San Diego County, which now expires in August 2030[95] - Operating lease expense for the three months ended September 30, 2025, was $312,521, compared to $206,462 for the same period in 2024, representing a 51.3% increase[97] - Total lease payments as of September 30, 2025, amounted to $5,728,707, with a present value of lease payments at $4,326,024 after accounting for interest[98] - The company had non-cancellable purchase orders totaling $3,110,328 as of September 30, 2025[99] Securities Offering - The Company entered into a Securities Purchase Agreement with institutional investors to issue 2,500,000 shares of Common Stock[111] - The Common Stock was sold at a par value of $0.0001 per share[111] - The Offering generated aggregate gross proceeds of $12,500,000 before deducting fees and expenses[111] - The Offering closed on October 1, 2025[111] - The prospectus supplement for the Offering was filed on October 1, 2025[111] - The Registration Statement on Form S-3 was originally filed on August 18, 2023, and declared effective on August 25, 2023[111]

Financial Performance - For the three months ended September 30, 2025, operating revenues decreased to $316,911 thousand from $359,131 thousand in the same period of 2024, representing a decline of approximately 11.1%[20] - Net income for the nine months ended September 30, 2025, was $366,817 thousand, significantly higher than $110,435 thousand for the same period in 2024, marking an increase of approximately 231.5%[24] - The company reported an operating income of $37,008 thousand for Q3 2025, compared to $20,122 thousand in Q3 2024, reflecting a year-over-year increase of approximately 83.9%[20] - The basic earnings per share for continuing operations was $0.06 for Q3 2025, compared to a loss of $0.13 in Q3 2024, showing a turnaround in performance[20] - Net income for Q3 2025 was $5,520, compared to $572 in Q3 2024, representing a significant increase[34] - Net income for the three months ended September 30, 2025, was $5,520,000, compared to $135,825,000 for the same period in 2024, reflecting a significant decrease[51] - Net income attributable to Southwest Gas Holdings for the three months ended September 30, 2025, was $270.5 million, compared to $289,000 in the same period of 2024[98] - Net income attributable to Southwest Gas Holdings, Inc. for the nine months ended September 30, 2025, was $371,463,000, compared to $106,359,000 for the same period in 2024, indicating a significant increase[88][89] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period increased to $778,631 thousand from $456,643 thousand year-over-year, representing a growth of approximately 70.5%[24] - The company reported net cash provided by operating activities of $474,508 thousand for the nine months ended September 30, 2025, compared to $1,154,336 thousand in 2024, a decrease of about 58.9%[24] - Cash and cash equivalents decreased to $181,996 at the end of Q3 2025 from $311,073 at the end of 2024, a decline of 41.5%[32] - Operating cash flows for Southwest Gas Holdings decreased by $553.3 million in the first nine months of 2025 compared to the same period in 2024, primarily due to reduced collection of previously deferred purchased gas costs[134] - Cash flows used in investing activities decreased by $66.5 million in the first nine months of 2025, driven by reduced capital expenditures and property additions[135] - Cash flows used in financing activities increased by $705.5 million in the first nine months of 2025, including a full payment of a $550 million term loan and a $130 million paydown on the revolving credit facility[136] Expenses and Liabilities - Total operating expenses for the nine months ended September 30, 2025, were $1,144,425 thousand, down from $1,666,222 thousand in 2024, indicating a reduction of about 31.2%[20] - The company incurred net interest deductions of $49,003 thousand for Q3 2025, down from $53,806 thousand in Q3 2024, reflecting a decrease of about 8.4%[20] - Total current liabilities decreased to $804,703 thousand as of September 30, 2025, from $1,831,967 thousand at the end of 2024, a reduction of approximately 56.1%[17] - The total capitalization and liabilities as of September 30, 2025, stood at $10,328,579 thousand, down from $12,072,906 thousand at the end of 2024, indicating a decrease of approximately 14.5%[17] - Interest expense for the nine months ended September 30, 2025, was $156,787,000, an increase from $152,452,000 for the same period in 2024[89] Equity and Shareholder Returns - As of September 30, 2025, total equity for Southwest Gas Holdings, Inc. was $3,928,679,000, reflecting an increase from $3,504,187,000 on December 31, 2024[28] - The balance of retained earnings increased to $999,399,000 as of September 30, 2025, up from $758,649,000 on March 31, 2025[28] - The balance of retained earnings as of September 30, 2025, was $1,233,196,000, up from $1,096,149,000 as of December 31, 2024[51] - Dividends declared remained consistent at $0.62 per share, totaling $45,016,000 for the quarter ending June 30, 2025[28] - The quarterly dividend was maintained at $0.62 per share, effective June 2025, reflecting the company's commitment to consistent dividend payments[145] Capital Expenditures and Investments - Capital expenditures for the nine months ended September 30, 2025, were $570,351, down from $643,720 in the same period of 2024[40] - Capital expenditures for the Natural Gas Distribution segment were $570.4 million during the nine-month period ended September 30, 2025, associated with new construction and pipeline replacements[143] - Management estimates capital expenditures will total approximately $2.6 billion over the three years ending December 31, 2027, with about $880 million expected in 2025[144] Strategic Operations and Changes - The Company completed the sale of its remaining shares of Centuri on September 5, 2025, marking a strategic shift in operations[45] - Following the deconsolidation of Centuri, the Company recognized a gain of $230.4 million, resulting in a net gain of $220.7 million related to the disposition of its retained interest in Centuri[74] - The Company completed a final public offering of Centuri common stock on September 5, 2025, generating net proceeds of approximately $524.0 million after deducting fees of about $900,000[75] - The Company completed the divestiture of its ownership in Centuri, utilizing $1.3 billion in proceeds for debt repayment and general corporate purposes[153] Regulatory and Tax Matters - The effective tax rate for the three months ended September 30, 2025, was (23.8)%, compared to 46.0% for the same period in 2024[54] - The Company recorded a tax expense of $14.4 million for the three-month period ended September 30, 2025, related to the recognition of outside basis differences[79] - For the nine months ended September 30, 2025, the effective tax rate was 18.4%, up from 14.2% in the same period of 2024[55] Customer and Market Insights - As of September 30, 2025, Southwest Gas had approximately 2,276,000 customers, with 54% of operating margin earned in Arizona, 34% in Nevada, and 12% in California[93] - The demand for natural gas is seasonal, with greater demand in colder months, and the company utilizes decoupled rate structures to mitigate weather impacts on revenue[95] - The company added approximately 40,000 first-time meter sets over the past twelve months, a slight decrease from 41,000 during the previous twelve months[93] - The company added approximately 40,000 first-time meter sets over the past twelve months, resulting in a 1.8% growth rate in customer base[103] Miscellaneous - The Company plans to adopt ASU 2023-09 for enhanced income tax disclosures starting Q4 2025, with no material impact expected on disclosures[57] - The company has a $400 million revolving credit facility expiring in August 2029, with no borrowings outstanding as of September 30, 2025[64] - The Arizona General Rate Case resulted in an authorized annual rate increase of approximately $80.2 million, effective March 2025[112] - The Nevada General Rate Case resulted in an approved annual revenue increase of $59 million, with a return on common equity set at 9.5%[119] - The California General Rate Case updated its revenue increase request to $43.7 million, with a return on common equity of 11.35%[125]

Revenue Performance - Total revenue for Q3 2025 was $36.2 million, a decrease of 10.4% compared to $40.5 million in Q3 2024[19] - Hardware revenue decreased to $11.5 million in Q3 2025 from $18.7 million in Q3 2024, representing a decline of 38.5%[19] - Professional services revenue increased to $7.0 million in Q3 2025, up 112.5% from $3.3 million in Q3 2024[19] - Total revenue for the nine months ended September 30, 2025 was $115,854, down 17% from $139,517 in the same period of 2024[93] - Total revenue for the three months ended September 30, 2025, was $36,202, a decrease of 10.4% compared to $40,510 for the same period in 2024[164] - Revenue from the United States for Q3 2025 was $36,097, down 9.8% from $40,030 in Q3 2024[93] - Hosted services revenue for Q3 2025 was $17,661, a slight decrease of 4.5% from $18,495 in Q3 2024[93] - SaaS revenue increased to $14,237 for the three months ended September 30, 2025, compared to $13,318 in 2024, reflecting a growth of 6.9%[164] Financial Losses and Improvements - Net loss for Q3 2025 was $6.3 million, compared to a net loss of $9.9 million in Q3 2024, showing an improvement of 36.7%[19] - For the nine months ended September 30, 2025, the net loss was $57,314 thousand, compared to a net loss of $22,220 thousand for the same period in 2024, representing an increase of 157%[26] - The net loss for the three months ended September 30, 2025, was $6,270, compared to a net loss of $9,923 in the same period of 2024, indicating an improvement of 36.7%[164] Assets and Liabilities - Total assets decreased to $335.8 million as of September 30, 2025, down from $420.2 million as of December 31, 2024, a reduction of 20.1%[17] - Total liabilities decreased to $101.4 million as of September 30, 2025, down from $130.7 million as of December 31, 2024, a reduction of 22.4%[17] - Cash and cash equivalents decreased to $100.0 million as of September 30, 2025, compared to $142.5 million as of December 31, 2024, a decline of 29.7%[17] - Total cash, cash equivalents, and restricted cash at the end of the period was $100,022 thousand, down from $163,650 thousand at the end of September 30, 2024, reflecting a decrease of 39%[26] Expenses and Investments - Research and development expenses for Q3 2025 were $6.1 million, a slight decrease from $6.6 million in Q3 2024[19] - Operating expenses for the three months ended September 30, 2025, totaled $16,596, a decrease of 34.3% from $25,194 in 2024[164] - Cash used in operating activities for the nine months ended September 30, 2025, was $29,232 thousand, up from $20,898 thousand in 2024, indicating a 40% increase[26] - The company incurred $3,552,000 in capital expenditures for property and equipment during the nine months ended September 30, 2025, compared to $524,000 in the same period in 2024, indicating a significant increase in investment[26] Stock and Equity - The company reported a total of 189,196 shares outstanding as of September 30, 2025, compared to 192,049 shares as of December 31, 2024[17] - Stock-based compensation for the quarter was recorded at $2,958,000[23] - The company repurchased Class A common stock amounting to $17,214,000 during the quarter[23] - Stock-based compensation expense recognized for the nine months ended September 30, 2025 was $692, a decrease of 55% from $1,528 for the same period in 2024[132] - The company has not drawn on the $75,000 Senior Revolving Facility as of September 30, 2025, which is set to mature in December 2026[112] Legal Matters - The company recorded a legal expense of $5,300 related to a supplier dispute during the three months ended March 31, 2024[154] - The settlement of a class action lawsuit related to the merger with SmartRent.com, Inc. is expected to cost $11,375, pending court approval[155] - The Company continues to negotiate settlements related to the 2024 Class Action, with a portion of the settlement funded by the primary D&O insurance carrier[156] Impairments and Write-offs - The company reported a goodwill impairment of $24,929 thousand for the nine months ended September 30, 2025, while there was no goodwill impairment recorded in the same period of 2024[26] - The company recorded a goodwill impairment charge of $24,929 during the three months ended March 31, 2025, due to a significant decline in stock price and market capitalization[49] - Inventory write-downs for the three months ended September 30, 2025, amounted to $3.258 million, compared to $2.596 million for the same period in 2024, reflecting an increase of approximately 25.5%[100] - The company recorded $1.794 million of inventory write-offs related to the sunsetting of its parking management solution during the three months ended September 30, 2025[100]

Financial Performance - Southwest Gas Holdings reported a net income of $270.5 million for Q3 2025, a significant increase of $270.2 million compared to the same period in 2024, primarily due to the sale of Centuri common stock[6]. - The company achieved a utility return on equity (ROE) of 8.3% for the trailing 12 months ended September 30, 2025, driven by regulatory improvements and cost management[7]. - Year-to-date utility net income improved by 11%, reaching $165.0 million for the nine months ended September 30, 2025, compared to $134.1 million in the same period in 2024[11]. - The net income from discontinued operations increased by $256.8 million, primarily due to a gain on the deconsolidation of Centuri[8]. - For the nine months ended September 30, 2025, net income increased by $234.2 million compared to the same period in 2024, primarily due to a $367.4 million gain from the deconsolidation of Centuri[19]. - The company expects 2025 net income to be in the range of $265 million to $275 million, with a capital expenditure of approximately $880 million to support customer growth and system improvements[20]. - The compound annual growth rate (CAGR) for net income from 2025 to 2029 is projected to be between 6.0% and 8.0%[20]. Revenue and Margins - Consolidated operating revenues for the nine months ended September 30, 2025, were $1,459.6 million, down from $1,922.2 million in the same period of 2024[28]. - The utility gross margin for the three months ended September 30, 2025, was $118.1 million, compared to $91.7 million in 2024[28]. - The operating margin for Q3 2025 increased by $26.8 million, primarily due to updated rates and customer growth, contributing $22.3 million and $1.6 million respectively[12]. Customer Growth and Operations - Southwest Gas added approximately 40,000 new meter sets, resulting in a 1.8% customer growth rate over the past 12 months[7]. - Total system throughput for the nine months ended September 30, 2025, was 159.8 million dekatherms, a decrease from 166.6 million dekatherms in 2024[31]. - The customer to employee ratio in the gas segment was 931 to 1 at quarter end[29]. Cash and Liquidity - As of September 30, 2025, the company had $779 million in cash and nearly $1.5 billion in available liquidity[7]. Future Plans - The company plans to file rate cases in Arizona and Nevada early next year to seek approval for new rates and alternative forms of ratemaking[3]. - The company will host a conference call on November 5, 2025, to discuss its third quarter 2025 results[21]. Share Performance - Consolidated earnings per diluted share for Q3 2025 were $3.74, compared to no earnings in the same period last year[4]. - Basic earnings per share for discontinued operations was $3.69 for the three months ended September 30, 2025, compared to $0.13 in 2024[28]. - The market value to book value per share at quarter end was 144%[29]. Separation from Centuri - The company completed the full separation from Centuri, generating approximately $879 million in net proceeds from the final sell-downs[1].

Revenue Performance - Q4 revenue increased by 13% year over year, reaching $287.9 million, which is near the high end of the guidance range[1] - Fiscal 2025 total revenue was $1,443.3 million, a decrease from $1,518.1 million in Fiscal 2024[4] - Total revenue for the three months ended September 27, 2025, was $287.9 million, a 12.7% increase from $255.4 million in the same period last year[22] - Sonos speakers revenue reached $206.5 million for the three months ended September 27, 2025, up 15.8% from $178.2 million year-over-year[22] - The Americas region generated $191.9 million in revenue for the three months ended September 27, 2025, a 8.1% increase from $177.5 million year-over-year[23] Profitability Metrics - Q4 adjusted EBITDA was $6.4 million, above the midpoint of the guidance range, while Fiscal 2025 adjusted EBITDA was $132.3 million[1][4] - Non-GAAP net income for Q4 was $78.5 million, with a non-GAAP diluted earnings per share of $0.64[4] - The company reported a net loss margin of (13.1)% for the three months ended September 27, 2025, compared to (20.8)% in the same period of 2024, indicating improved profitability[18] - The net loss for the three months ended September 27, 2025, was $37,858,000, an improvement from a net loss of $53,093,000 in the same period of 2024, representing a reduction of 28.8%[20] - Non-GAAP net income for the twelve months ended September 27, 2025, was $78.5 million, compared to $62.0 million in the previous year, representing a 26.5% increase[22] Cost Management - Research and Development (GAAP) expenses for the three months ended September 27, 2025, were $61,958,000, down from $70,777,000 in 2024, a decrease of 11.5%[16] - Total operating expenses (GAAP) for the twelve months ended September 27, 2025, were $680,998,000, compared to $737,419,000 in 2024, a reduction of 7.7%[17] - Stock-based compensation expense for the three months ended September 27, 2025, was $16.9 million, down from $19.3 million in the same period last year, a decrease of 12.5%[23] - Total stock-based compensation expense for the twelve months ended September 27, 2025, was $86.3 million, compared to $84.3 million in the previous year, an increase of 2.4%[23] - The company initiated a restructuring plan on February 5, 2025, affecting 12% of its workforce, aimed at reducing costs[19] Gross Margin Analysis - The company reported a GAAP gross margin of 43.7% for Q4 and 45.2% on a non-GAAP basis[4] - Non-GAAP gross margin for the three months ended September 27, 2025, was 45.1%, compared to 41.0% in the same period of 2024, an increase of 10.0%[15] - GAAP gross profit for the three months ended September 27, 2025, was $125,791,000, compared to $103,016,000 for the same period in 2024, reflecting a growth of 22%[15] - Non-GAAP gross profit for the twelve months ended September 27, 2025, was $652,458,000, up from $695,878,000 in the previous year, indicating a decline of 6.2%[15] Future Strategy - The company aims to focus on durable top-line growth while balancing profitability improvements in Fiscal 2026[2] - Sonos is committed to enhancing its software quality and expanding its product offerings as part of its growth strategy[2] - The company aims to expand its market share and enhance its product offerings through new product introductions and improvements to its operating model[26]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Exact name of registrant as specified in its charter) Delaware 13-3607736 (State or other jurisdiction of incorporation or organization) 1 Casper Street Danbury, Connecticut 06810 (Address of principal executive offices) (Zip Code) Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF ...

Financial Performance - Total revenue for Q3 2025 was $36.2 million, an 11% decrease from the prior year, primarily due to a strategic shift away from bulk hardware sales [4] - Annual Recurring Revenue (ARR) increased by 7% to $56.9 million, now representing 39% of total revenue [4] - The net loss improved by $3.6 million to $(6.3) million, and Adjusted EBITDA improved by $0.9 million to $(2.9) million, mainly due to the cost reduction program [4] - Total revenue for Q3 2025 was $36,202, a decrease of 10.3% compared to $40,510 in Q3 2024 [32] - Net loss for the nine months ended September 30, 2025, was $57,314, compared to a net loss of $22,220 for the same period in 2024, indicating an increase in losses of 157.5% [37] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(16,646), compared to $(2,523) for the same period in 2024 [39] Operational Metrics - Units Deployed reached 870,230, an 11% increase year-over-year, with 22,644 New Units Deployed during the quarter, a 49% increase from the prior year [7] - Units Booked totaled 22,080, representing a 30% increase driven by investments in the sales organization [7] Revenue Composition - SaaS revenue represented more than 39% of total revenue in Q3 2025, up from 33% in the prior year [6] - Hardware revenue decreased to $11,506 in Q3 2025 from $18,707 in Q3 2024, representing a decline of 38.5% [32] Expenses and Cost Management - Operating expenses declined to $16.6 million, an $8.6 million or 34% decrease from the prior year [8] - Research and development expenses for Q3 2025 were $6,149, slightly down from $6,596 in Q3 2024, a decrease of 6.8% [32] - The company completed a $30 million cost reduction program, aiming for cash flow neutrality by the end of 2025 [3] Financial Position - Cash position at the end of Q3 was $100 million, with no debt and a $75 million undrawn credit facility, indicating strong liquidity [3] - Total current assets decreased to $201,465 as of September 30, 2025, down from $257,650 as of December 31, 2024, a decline of 21.8% [35] - Cash and cash equivalents decreased to $100,022 as of September 30, 2025, from $142,482 at the beginning of the period, a decrease of 29.7% [36] - Total liabilities decreased to $101,385 as of September 30, 2025, from $130,741 as of December 31, 2024, a reduction of 22.5% [35] Impairment and Shares - The company reported an impairment charge of $24,929 for goodwill in the nine months ended September 30, 2025 [32] - The weighted-average number of shares used in computing net loss per share was 189,835 for the nine months ended September 30, 2025 [32]

Financial Performance - Net product sales for Q3 2025 were $1.6 million, compared to $0.6 million in Q3 2024, representing a 166.7% increase[4] - Total revenue for the nine months ended September 30, 2025, was $32.5 million, significantly up from $1.1 million in the same period of 2024[15] - The operating loss for Q3 2025 was $27.5 million, an improvement from a loss of $34.5 million in Q3 2024, reflecting the impact of strategic restructuring[4] - The net loss for Q3 2025 was $29.8 million, or $0.69 per share, compared to a net loss of $36.7 million, or $5.48 per share, in Q3 2024[7] Funding and Financial Position - The company successfully raised $240.3 million through two financings, extending its cash runway to the end of 2028[2] - Cash, cash equivalents, and short-term investments totaled $122.2 million as of September 30, 2025[8] - Total stockholders' equity increased to $61.6 million as of September 30, 2025, up from $22.1 million at the end of 2024[16] Operational Changes - The workforce was reduced by 50%, expected to generate approximately $13 million in annualized cost savings[5] - The enrollment target for the 4WARD Phase 3 trial has been increased to 176 patients, with completion expected in Q3 2026[5] Market Potential - The potential addressable market for mavorixafor in chronic neutropenia is estimated at 15,000 patients in the US[2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39620 PRAXIS PRECISION ME ...