Revenue Performance - Revenue for the first quarter of fiscal year 2026 was $44.1 billion, representing a 69% increase year-over-year and a 12% increase sequentially [118]. - Data Center revenue reached $39.1 billion, up 73% year-over-year and 10% sequentially, driven by demand for accelerated computing platforms [121]. - Gaming revenue increased by 42% year-over-year and 48% sequentially, supported by sales of the Blackwell architecture [122]. - Automotive revenue grew by 72% year-over-year, driven by sales of self-driving platforms, but decreased by 1% sequentially [123]. - Compute & Networking revenue increased by 29% year-over-year to $22,054 million, driven by demand for accelerated computing platforms for AI applications [130]. - Data Center compute revenue was $34.2 billion, up 76% year-over-year and 5% sequentially, while networking revenue was $5.0 billion, up 56% year-over-year and 64% sequentially [121]. - Data Center computing revenue grew 76% year-over-year, while Data Center networking revenue increased by 56% year-over-year, attributed to the Blackwell computing platform and NVLink compute fabric [130]. - Revenue from customers outside the United States accounted for 53% of total revenue, up from 48% in the previous year [138]. - The company estimates that two indirect customers contributed to 10% or more of total revenue, primarily through system integrators and distributors [136]. Financial Charges and Expenses - The company incurred a $4.5 billion charge in the first quarter of fiscal year 2026 due to new export licensing requirements for H20 products, impacting current and future revenue [108]. - Gross margin decreased to 60.5%, down from 78.4% a year ago, primarily due to the $4.5 billion charge related to H20 excess inventory [118]. - Operating expenses increased by 44% year-over-year to $5.0 billion, driven by higher compensation and development costs for new product introductions [124]. - Research and development expenses increased by 47% to $3,989 million, driven by a 34% rise in compensation and benefits and a 182% increase in engineering development costs [142]. - Total operating income rose to $21,638 million, a 28% increase from the previous year, despite a $4.5 billion charge related to excess inventory [132]. - Income tax expense was $3.1 billion, with an effective tax rate of 14.3%, reflecting a lower tax benefit from stock-based compensation [147]. Strategic Initiatives - The company plans to increase U.S.-based manufacturing to strengthen its supply chain and meet growing demand for AI infrastructure [115]. - The company is evaluating options to supply Data Center compute products compliant with U.S. government export control rules, which may hinder its ability to compete in the China market [109]. Liquidity and Share Repurchase - Cash and cash equivalents totaled $15,234 million, with marketable securities at $38,457 million, resulting in total liquidity of $53,691 million as of April 27, 2025 [150]. - The company repurchased 126 million shares for $14.5 billion during the first quarter of fiscal year 2026, with an authorization to repurchase up to $24.3 billion [156]. Regulatory and Risk Factors - No material changes in contractual obligations since the Annual Report for the fiscal year ended January 26, 2025 [163]. - No material impact from global sustainability regulations or climate-related business trends on operational results [164]. - No adoption of new accounting pronouncements reported [165]. - No material changes in investment and interest rate risks since January 26, 2025 [166]. - No material changes in foreign exchange rate risks since January 26, 2025 [167].

Exhibit 99.1 NEWS RELEASE Contact: Kyle Beeson Director, Communications Phone (610) 251-1000 kbeeson@triumphgroup.com Thomas A. Quigley, III Vice President, Investor Relations, Mergers & Acquisitions and Treasurer Phone (610) 251-1000 tquigley@triumphgroup.com TRIUMPH REPORTS STRONG FOURTH QUARTER FISCAL 2025 RESULTS RADNOR, Pa. – May 28, 2025 – Triumph Group, Inc. (NYSE: TGI) ("TRIUMPH" or the "Company") today reported financial results for its fourth quarter and fiscal 2025, which ended March 31, 2025. Fo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 March 31, 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: 001-42621 GBANK FINANCIAL HOLDINGS INC. (Exact Name of Registrant as Specified in its Charter) Nevada 82-3869786 ( State or other jur ...

Revenue Performance - Revenue for Q1 FY26 was $44.1 billion, up 12% from Q4 FY25 and up 69% from Q1 FY25[1] - Data Center revenue reached $39.1 billion, increasing 10% from the previous quarter and 73% year-over-year[5] - Revenue for the three months ended April 27, 2025, was $44,062 million, a 69.2% increase from $26,044 million in the same period of 2024[23] Profitability Metrics - GAAP gross margin was 60.5%, while non-GAAP gross margin was 61.0%; excluding a $4.5 billion charge, non-GAAP gross margin would have been 71.3%[3] - Gross profit for the same period was $26,668 million, resulting in a gross margin of 60.5%, compared to 78.4% in the prior year[23][29] - Net income increased to $18,775 million, or $0.76 per diluted share, up from $14,881 million, or $0.60 per diluted share, year-over-year[23][30] - Non-GAAP net income for the three months ended April 27, 2025, was $19,894 million, reflecting a strong performance compared to $15,238 million in the same period last year[29] - The company expects a GAAP gross margin of 71.8% for Q2 FY2026, with a non-GAAP gross margin projected at 72.0%[34] Charges and Expenses - The company incurred a $4.5 billion charge due to H20 excess inventory and purchase obligations, impacting overall revenue[2] - Operating expenses for Q2 FY2026 are anticipated to be $5,700 million, with non-GAAP operating expenses expected to be $4,000 million after adjustments[34] Cash Flow and Assets - Cash flows from operating activities were $27,414 million, significantly higher than $15,345 million in the same quarter of the previous year[27] - The company reported a significant increase in cash and cash equivalents, ending the period with $15,234 million compared to $7,587 million in the same quarter last year[27] - Total assets rose to $125,254 million, up from $111,601 million at the end of the previous quarter[25] - Total liabilities increased to $41,411 million, compared to $32,274 million in the prior quarter[25] Future Outlook - NVIDIA expects Q2 FY26 revenue to be approximately $45.0 billion, reflecting a loss of about $8.0 billion in H20 revenue due to export control limitations[7] - The company is working towards achieving gross margins in the mid-70% range by late FY26[7] Product Developments - NVIDIA announced plans to build factories in the U.S. and collaborate with partners to produce AI supercomputers domestically[10] - The company unveiled several new products, including NVIDIA Blackwell Ultra and NVIDIA Dynamo for AI reasoning models[10] Gaming Revenue - First-quarter Gaming revenue was a record $3.8 billion, up 48% from the previous quarter and 42% year-over-year[9] Dividends - NVIDIA's next quarterly cash dividend will be $0.01 per share, payable on July 3, 2025[4]

Revenue - No revenue was generated during the three-month and six-month periods ended April 30, 2025 and 2024[84][92] Expenses - Research and development expenses decreased by approximately $324,000 to approximately $1,322,000 in the three months ended April 30, 2025, compared to approximately $1,646,000 in the same period of 2024[87] - General and administrative expenses decreased by approximately $140,000 to approximately $1,681,000 in the three months ended April 30, 2025, from approximately $1,821,000 in the same period of 2024[88] - Research and development expenses for cancer vaccines and CAR-T therapeutics were approximately $1,873,000 and $1,001,000, respectively, during the six months ended April 30, 2025[94] - General and administrative expenses decreased by approximately $566,000 to approximately $3,515,000 in the six months ended April 30, 2025, from approximately $4,081,000 in the same period of 2024[96] Income - Interest income decreased by approximately $96,000 to approximately $190,000 in the three months ended April 30, 2025, from approximately $287,000 in the same period of 2024[89] - Interest income decreased by approximately $243,000 to approximately $363,000 in the six months ended April 30, 2025, from approximately $606,000 in the same period of 2024[97] Assets and Cash Flow - Total current assets decreased by approximately $4,596,000 to approximately $16,766,000 at April 30, 2025, compared to approximately $21,362,000 at October 31, 2024[100] - Cash used in operating activities was approximately $4,407,000 during the six months ended April 30, 2025[101] Net Loss - The net loss attributable to noncontrolling interest decreased by approximately $24,000 to approximately $52,000 in the six months ended April 30, 2025, from approximately $76,000 in the same period of 2024[98] Internal Controls - There was no change in internal control over financial reporting during the three months ended April 30, 2025, that materially affected internal control[117] - The Chief Executive Officer and Chief Financial Officer concluded that disclosure controls and procedures are effective as of the end of the reporting period[116] Compensation Allocation - The company allocates certain internal compensation costs to research and development expenses based on management's estimates of employee time and effort[113]

Revenue Growth - Total revenues increased from $128,087 thousand in Q1 2024 to $144,137 thousand in Q1 2025, representing a growth of 12.5%[17] - Subscription revenues rose from $110,406 thousand in Q1 2024 to $125,588 thousand in Q1 2025, an increase of 13.8%[17] - Total revenue for the three months ended April 30, 2025, was $144.1 million, representing a 12.6% increase from $128.1 million in the same period of 2024[67] - Revenues from the United States for the three months ended April 30, 2025, were $112.6 million, up from $102.2 million in the same period of 2024[160] - Subscription revenues for the three months ended April 30, 2025, were $125.6 million, a 13.8% increase from $110.4 million in the same period of 2024[182] Profitability - Net income attributable to nCino, Inc. improved from a loss of $2,976 thousand in Q1 2024 to a profit of $5,562 thousand in Q1 2025[17] - The net income attributable to the Company for the three months ended April 30, 2025, was $5.6 million, compared to a net loss of $3.0 million for the same period in 2024, representing a significant turnaround[157] - Net income improved from a loss of $2.3 million in Q2 2024 to a profit of $6.0 million in Q2 2025[202] Operating Expenses - Operating expenses increased from $80,570 thousand in Q1 2024 to $87,955 thousand in Q1 2025, reflecting a rise of 9.4%[17] - Operating expenses increased from $80.6 million in Q2 2024 to $88.0 million in Q2 2025, with the operating loss narrowing from $3.7 million to $1.5 million[211] - Sales and marketing expenses rose by $4.9 million, driven by increased personnel costs and marketing expenses[212] Cash Flow and Liquidity - Cash flows from operating activities remained stable, with $54,442 thousand in Q1 2024 compared to $54,320 thousand in Q1 2025[27] - The company reported a net cash increase of $17,394 thousand in Q1 2024, while in Q1 2025, the increase was $12,313 thousand[27] - Cash and cash equivalents at the end of the period decreased slightly from $129,481 thousand in Q1 2024 to $133,230 thousand in Q1 2025[27] Acquisitions - The company acquired DocFox for $74.3 million, with transaction costs of approximately $3.9 million recorded in general and administrative expenses[79] - The FullCircl acquisition was completed for a total consideration of $142.4 million, with $129.2 million paid in cash at the acquisition date[94] - The company acquired Sandbox Banking for an aggregate purchase price of $62.9 million, enhancing its data connectivity and operational capabilities[179] Stock and Shareholder Actions - In March 2025, the Board of Directors authorized a stock repurchase program of up to $100 million, with $59.4 million remaining as of April 30, 2025[119][121] - During the three months ended April 30, 2025, the company repurchased 1,829,113 shares at an average price of $22.17, totaling $40.551 million[120] - The company granted 2,644,929 RSUs on May 1, 2025, expecting to recognize stock-based compensation expense of $60.5 million over a weighted average period of 4 years[163] Future Expectations - The Company expects to incur restructuring charges of approximately $7.5 to $9.0 million in the second quarter of fiscal 2026 due to a workforce reduction of about 7%[165] - The company expects to increase investment in product development and sales and marketing to drive future growth[188] - The company anticipates that subscription revenues will continue to make up an increasing proportion of total revenues over time[185] Financial Position - The Company had outstanding debt of $208.5 million under the 2024 Credit Facility as of April 30, 2025, with an interest rate of 6.32% and an available borrowing capacity of $41.5 million[143] - The total lease liabilities as of April 30, 2025, amounted to $21.169 million, with long-term lease obligations of $12.338 million[131] - The Company had total purchase commitments of $217.1 million and financing obligations of $52.4 million as of April 30, 2025[149]

Financial Performance - Fiscal 2025 Q2 net revenue was $13.2 billion, an increase of 3.3% year-over-year[4] - GAAP diluted net EPS for Q2 was $0.42, down 31% from $0.61 in the prior year[3] - Non-GAAP diluted net EPS for Q2 was $0.71, down 13% from $0.82 in the prior year[3] - Total net revenue for the three months ended April 30, 2025, was $13,220 million, a decrease of 2.1% from $13,504 million in the previous quarter and an increase of 3.3% from $12,800 million in the same quarter last year[22] - Gross profit for the three months ended April 30, 2025, was $2,739 million, down 10.4% from $2,840 million in the previous quarter and down 9.4% from $3,023 million in the same quarter last year[22] - Net earnings for the three months ended April 30, 2025, were $406 million, a decrease of 28.1% from $565 million in the previous quarter and a decrease of 33.1% from $607 million in the same quarter last year[22] - Basic net earnings per share for the three months ended April 30, 2025, was $0.43, down from $0.60 in the previous quarter and $0.62 in the same quarter last year[22] - Total net revenue for the six months ended April 30, 2025, was $26,724 million, an increase of 2.8% from $25,985 million in the same period last year[24] - Net earnings for the six months ended April 30, 2025, were $971 million, a decrease of 21.0% from $1,229 million in the same period last year[24] Cash Flow and Dividends - Free cash flow for Q2 was $(95) million, a decrease of 120% compared to $0.5 billion in the prior year[7] - HP returned $0.4 billion to shareholders through dividends and share repurchases in Q2[3] - For FY25, HP anticipates generating free cash flow in the range of $2.6 to $3.0 billion[11] - Cash dividends declared per share for the six months ended April 30, 2025, was $0.58, compared to $0.55 in the same period last year[24] - Cash dividends paid in the six months ended April 30, 2025, totaled $546 million, slightly up from $544 million in the same period of 2024[35] Segment Performance - Personal Systems segment net revenue was $9.0 billion, up 7% year-over-year, with a 4.5% operating margin[9] - Printing segment net revenue was $4.2 billion, down 4% year-over-year, with a 19.5% operating margin[9] - The Personal Systems segment reported net revenue of $9,024 million for the three months ended April 30, 2025, a 7% increase from $8,426 million year-over-year[37] - The Printing segment's operating margin for the three months ended April 30, 2025, was 19.5%, an increase of 0.5 percentage points compared to the previous quarter[43] - The Consumer Printing segment's net revenue for the three months ended April 30, 2025, was $289 million, unchanged from the previous year[37] Assets and Liabilities - HP's accounts receivable at the end of Q2 was $4.3 billion, with inventory at $8.2 billion[6] - Total current assets as of April 30, 2025, were $19,458 million, a decrease of 6.3% from $20,760 million as of October 31, 2024[31] - Total liabilities and stockholders' deficit as of April 30, 2025, was $38,799 million, a decrease of 2.8% from $39,909 million as of October 31, 2024[31] Research and Development - Research and development expenses for the three months ended April 30, 2025, were $401 million, slightly up from $397 million in the previous quarter but down from $436 million in the same quarter last year[22] Future Outlook - For Q3 FY25, HP estimates GAAP diluted net EPS to be in the range of $0.57 to $0.69[10] - Key growth areas identified by the company include Hybrid Systems and Advanced Compute Solutions, which are expected to grow faster than HP's core business[55] - The company emphasizes the importance of non-GAAP financial measures for evaluating its financial performance and making operational decisions[60]

Financial Performance - Ooma reported total revenue of $65.0 million for Q1 fiscal 2026, representing a 4% year-over-year increase[5]. - Non-GAAP net income for the quarter was $5.6 million, or $0.20 per diluted share, compared to $3.6 million, or $0.14 per diluted share in the prior year[5]. - Adjusted EBITDA increased to $6.7 million, up from $5.0 million in Q1 fiscal 2025, reflecting a 33% year-over-year growth[5]. - Subscription and services revenue accounted for 93% of total revenue, increasing to $60.3 million from $58.4 million in the same quarter last year[5]. - Revenue for the three months ended April 30, 2025, was $65,029,000, an increase of 4.9% compared to $62,499,000 for the same period in 2024[27]. - GAAP gross profit for the same period was $40,209,000, up from $38,115,000, resulting in a GAAP gross margin of 62%[27]. - Non-GAAP gross profit increased to $41,161,000 from $39,175,000, maintaining a Non-GAAP gross margin of 63%[27]. - The company reported a GAAP net loss of $141,000 for the three months ended April 30, 2025, significantly improved from a net loss of $2,139,000 in the same period of 2024[27]. - Non-GAAP net income for the period was $5,640,000, compared to $3,583,000 for the same period in 2024[27]. - Adjusted EBITDA for the three months ended April 30, 2025, was $6,668,000, an increase from $5,000,000 in the prior year[27]. Future Projections - Ooma expects total revenue for Q2 fiscal 2026 to be in the range of $65.5 million to $66.1 million[6]. - For the full fiscal year 2026, Ooma anticipates total revenue between $267 million and $270 million[6]. Asset Management - Total current assets as of April 30, 2025, were $57.3 million, compared to $56.2 million as of January 31, 2025[22]. - Ooma's total assets decreased slightly to $148.8 million from $149.2 million at the end of the previous quarter[22]. - Cash and cash equivalents at the end of the period were $18,988,000, up from $15,848,000 at the end of the same period in 2024[26]. - Net cash provided by operating activities was $3,703,000, compared to $3,585,000 for the same period in 2024[26]. Stock and Compensation - The company issued common stock, generating proceeds of $2,288,000, compared to $1,417,000 in the prior year[26]. - The company incurred stock-based compensation expense of $3,936,000, slightly down from $4,363,000 in the same period of 2024[26]. Customer Acquisition - The company added over 30 AirDial resellers and secured four new customers for its 2600Hz solution during the quarter[4]. Loss Improvement - GAAP net loss for Q1 fiscal 2026 was $0.1 million, or $0.01 per share, an improvement from a loss of $2.1 million, or $0.08 per share, in Q1 fiscal 2025[5].

Revenue Performance - Revenue for the three months ended April 30, 2025, was $229.0 million, representing a year-over-year growth of 23% from $186.4 million in the same period of 2024[102]. - Revenue for the three months ended April 30, 2025, was $229.0 million, a 23% increase from $186.4 million in the same period of 2024, driven by new customer sales and additional licenses to existing customers[134]. - Annualized recurring revenue (ARR) grew 24% year-over-year to $948.1 million as of April 30, 2025, driven by new customer additions and existing customer adoption of adjacent platform solutions[113]. - The number of customers with ARR of $100,000 or more increased by 22% year-over-year to 1,459 as of April 30, 2025, up from 1,193 in 2024[115]. - Revenue outside of the U.S. represented 38% of total revenue for the three months ended April 30, 2025, compared to 37% in the same period of 2024, indicating a strong global presence[101]. Operating Loss and Expenses - Non-GAAP operating loss for the three months ended April 30, 2025, was $3.9 million, an improvement from a loss of $11.1 million in the same period of 2024[110]. - The company reported a GAAP operating loss of $87.5 million for the three months ended April 30, 2025, compared to a loss of $80.6 million in 2024[111]. - The net loss for the three months ended April 30, 2025, was $208.2 million, compared to a net loss of $70.1 million in the same period of 2024[134]. - Research and development expenses increased by $13.9 million to $72.3 million, primarily due to a $9.8 million rise in personnel-related costs and a $1.6 million increase in cloud hosting expenses[138]. - Sales and marketing expenses rose by $18.1 million to $133.9 million, mainly due to a $15.9 million increase in personnel-related expenses[139]. - General and administrative expenses increased by $6.0 million to $48.7 million, driven by a $5.2 million rise in personnel-related costs and a $2.2 million increase in consulting expenses[140]. - Restructuring charges amounted to $5.2 million, reflecting costs associated with the restructuring plan executed in March 2025[141]. Cash Flow and Financing - Cash provided by operating activities for the three months ended April 30, 2025, was $52.3 million, compared to $42.0 million for the same period in 2024[150][156]. - Cash used in investing activities during the three months ended April 30, 2025, was $65.6 million, primarily due to $167.3 million in investment purchases[157]. - Cash provided by financing activities for the three months ended April 30, 2025, was $12.3 million, entirely from the exercise of employee stock options[159]. - The company has authorized a $200.0 million share repurchase program, with no shares repurchased as of May 28, 2025[149][150]. - The company holds cash, cash equivalents, and investments totaling $1.2 billion as of April 30, 2025, which is expected to support working capital for at least the next 12 months[146][169]. - The company may seek additional equity or debt financing in the future, depending on various factors including revenue growth and macroeconomic conditions[147]. Tax and Interest - The provision for income taxes surged to $133.5 million, primarily due to an accrual of $136.0 million for an unrecognized tax benefit related to the APA matter[143]. - The company recorded a tax expense of $136.0 million during the three months ended April 30, 2025, related to uncertain tax positions in the context of APA negotiations[145][163]. - Interest income, net increased by $0.2 million to $12.3 million, attributed to higher income from investments in marketable securities[142]. Market Conditions and Strategy - The company experienced a decline in usage and consumption patterns from certain larger enterprise customers due to macroeconomic conditions, leading to longer sales cycles and deal downsizing[103]. - The company intends to monitor global macroeconomic conditions closely and may take financial or operational actions in response to adverse impacts on its business[104]. - The company’s go-to-market strategy focuses on acquiring new customers and expanding usage among existing customers through a combination of direct sales and channel partnerships[100]. - The company’s distributed AI models provide protection even when devices are not connected to the cloud, enhancing the platform's effectiveness[96]. Future Expectations - The company expects research and development expenses to increase in absolute dollars while decreasing as a percentage of total revenue over time[123]. - As of April 30, 2025, the company reported an accumulated deficit of $1.8 billion and expects operating losses to continue for the foreseeable future[145]. - A hypothetical 100 basis point change in interest rates would result in an $8.4 million change in the fair market value of the company's investment portfolio[169]. - A hypothetical 10% adverse change in the U.S. dollar against other currencies would have increased operating loss by approximately $8.1 million for the three months ended April 30, 2025[170].

Store Operations and Strategy - As of March 29, 2025, Monro operated 1,260 retail tire and automotive repair stores and serviced approximately 4.2 million vehicles in fiscal 2025[16]. - The company plans to close 145 underperforming stores in the first quarter of fiscal 2026 as part of its Store Closure Plan[21]. - Monro completed 5 acquisitions in the last five years, adding 69 locations and approximately $103 million in annualized revenue[29]. - The company aims to enhance its omni-channel presence through improved brand websites, allowing customers to search for store locations, access coupons, and make service appointments[27]. - Monro's growth strategy includes identifying acquisition opportunities based on consumer demographic analytics to enter favorable markets[28]. - The company is focused on integrating new and acquired stores to drive growth, with challenges in achieving expected profitability levels[102]. Financial Performance - Fiscal 2025 diluted loss per common share was ($0.22), a decrease of 118.6% compared to $1.18 in fiscal 2024[163]. - Adjusted diluted earnings per share (EPS) for fiscal 2025 were $0.48, down 63.9% from $1.33 in fiscal 2024[163]. - Sales decreased by 6.4% primarily due to lower overall comparable store sales resulting from reduced store traffic and fewer selling days[164]. - Comparable store sales decreased by 5.3% from the prior year, or a decrease of 3.5% when adjusted for days[164]. - Operating income for fiscal 2025 was $12.6 million, representing an 82.4% decline from the previous year, impacted by a $22.4 million increase in store impairment charges[164]. - Sales for 2025 were $1,195,334 thousand, a decrease of 6.4% compared to $1,276,789 thousand in 2024[166]. - Gross profit for 2025 was $417,645 thousand, down 7.6% from $452,103 thousand in 2024, with a gross profit margin of 34.9%[176]. - Operating, selling, general and administrative expenses increased by 6.4% to $405,080 thousand in 2025, primarily due to a $22,440 thousand rise in store impairment charges[178]. - Adjusted net income for 2025 was $15,624 thousand, down from $42,398 thousand in 2024, reflecting significant impairment and transition costs[184]. Employee and Labor Considerations - Monro had approximately 7,360 employees as of March 29, 2025, with 7,200 employed in the field organization[38]. - The company is experiencing increased payroll expenses due to mandated minimum wage increases and inflation, which could adversely affect profitability[93]. - The company faces challenges in hiring skilled technicians due to a tight labor market, which could adversely impact financial performance[119]. Environmental and Safety Commitments - Monro recycled approximately 2.0 million gallons of oil, 3.0 million tires, 79,000 vehicle batteries, and 351 tons of cardboard in 2025 as part of its environmental commitment[60]. - The company has a commitment to workplace safety, with training programs aimed at reducing workplace accidents and injuries[52]. - Compliance with various environmental and consumer protection regulations may impose significant operational burdens and costs[90]. Financial Obligations and Risks - As of March 29, 2025, Monro had $61.3 million outstanding under its Credit Facility, indicating reliance on external financing[80]. - The Credit Facility includes covenants that restrict the company's ability to incur additional debt, make investments, and declare dividends, which could adversely affect its financial condition[84]. - The company must maintain a minimum interest coverage ratio and a maximum ratio of adjusted debt to EBITDAR, with potential defaults impacting its financial stability[85]. - Total contractual obligations as of March 29, 2025, amounted to $618.0 million, with $97.8 million due within one year[194]. - The current borrowing capacity for the Credit Facility is $500 million, with an accordion feature allowing for an additional $250 million[205]. - The company has a minimum liquidity requirement of $400 million to declare dividends during the Covenant Relief Period[213]. Market and Economic Conditions - The automotive repair industry is highly competitive, with various competitors including national and regional service centers, mass merchandisers, and online retailers[65]. - Economic conditions affecting consumer spending, such as inflation and interest rates, could adversely impact Monro's financial performance[66]. - The adoption of electric vehicle technology may decrease demand for traditional automotive services, affecting revenue[71]. - Changes in automotive technology may lead to reduced demand for certain services, impacting sales negatively[72]. - Monro's business is influenced by the number of miles driven, which can be affected by factors like gas prices and weather conditions[67]. - Significant fluctuations in shipping costs and transportation delays due to geopolitical events could negatively impact operations and financial results[81]. Cybersecurity and Legal Risks - The company has faced a cyber incident involving unauthorized access to employee data, leading to potential legal liabilities and increased costs[99]. - The company has implemented a comprehensive cybersecurity program aligned with industry standards, focusing on prevention, detection, and response to threats[126]. Changes in Corporate Structure and Governance - The company has undergone significant changes in executive leadership, which may create uncertainty and impact strategic execution[87]. - The concentration of voting power in Class C Convertible Preferred Stock limits the influence of common shareholders on corporate matters[114]. - The company may reduce or eliminate its common stock dividend in the future, which could adversely affect the market price of its common stock[113]. Asset Management and Impairments - In fiscal 2025, the company incurred store impairment charges of approximately $24.4 million due to changes in financial performance and recoverability assessments[109]. - The company recorded $20.8 million in store impairment costs in fiscal 2025 related to the identified underperforming stores[110]. - The company has not identified any impairment of goodwill or intangible assets as of March 29, 2025, but future performance issues could lead to impairments[107]. - Future determinations of significant write-offs of goodwill or intangible assets could have a material negative impact on the company's financial condition[109].