Financial Performance - Total operating revenues for Q3 2025 were $429 million, a decrease of 11.7% compared to $486 million in Q3 2024[20] - Operating income for Q3 2025 was $112 million, down 37.0% from $178 million in Q3 2024[20] - Net income attributable to Clearway Energy, Inc. for Q3 2025 was $236 million, significantly up from $36 million in Q3 2024[20] - Earnings per share for Class A and Class C common stockholders in Q3 2025 were $2.00, compared to $0.31 in Q3 2024[20] - Comprehensive income attributable to Clearway Energy, Inc. for the three months ended September 30, 2025, was $233 million, up from $32 million in 2024, indicating a significant growth[23] - For the three months ended September 30, 2025, net income attributable to Clearway Energy, Inc. was $69 million, compared to $167 million for the same period in 2024, resulting in a decrease of 58.7%[116] - For the nine months ended September 30, 2025, net income attributable to Clearway Energy, Inc. was $80 million, down from $193 million in 2024, a decrease of 58.6%[116] Cash Flow and Assets - Cash Available for Distribution (CAFD) is defined as Adjusted EBITDA plus cash distributions from unconsolidated affiliates, indicating strong cash flow management strategies[16] - Cash flows from operating activities for the nine months ended September 30, 2025, were $511 million, down from $578 million in the same period of 2024[28] - Total assets increased to $16,066 million as of September 30, 2025, from $14,329 million at December 31, 2024, reflecting a 12.2% growth[26] - Cash and cash equivalents at the end of the period were $641 million, down from $733 million at the beginning of the period, representing a decrease of 12.5%[28] - Total accounts receivable, net, increased to $238 million as of September 30, 2025, from $164 million as of December 31, 2024[54] Debt and Liabilities - Long-term debt increased to $8,084 million as of September 30, 2025, from $6,750 million at December 31, 2024, reflecting a 19.7% increase[26] - The carrying amount of the Company's long-term debt, including the current portion, was $8,492 million as of September 30, 2025[87] - Current liabilities decreased to $687 million as of September 30, 2025, from $718 million at December 31, 2024, showing a reduction of 4.3%[26] - The company reported a loss on debt extinguishment of $7 million in Q3 2025, compared to no loss in Q3 2024[20] Dividends - Dividends per Class A and Class C common share for the nine months ended September 30, 2025, were $1.3152, an increase from $1.2306 in the same period of 2024[20] - The Company declared quarterly dividends of $0.4528 per share on November 3, 2025, payable on December 15, 2025[46] - Common stock dividends and distributions to CEG unit holders were $90 million for the quarter ended September 30, 2025[30] Acquisitions and Investments - The Company acquired Honeycomb TargetCo LLC for an initial cash consideration of $16 million, with a total estimated capital investment of $78 million, including an additional $62 million payment expected upon substantial completion in the first half of 2026[59] - The acquisition of Daggett 1 Class B involved an initial cash consideration of $11 million, with a total capital investment of $57 million, including an additional $42 million payment made upon substantial completion[61] - The Company acquired Luna Valley Class B for an initial cash consideration of $18 million, with a total capital investment of $119 million, including an additional $72 million payment upon substantial completion[64] - The acquisition of Rosamond South I included an initial cash consideration of $4 million, with a total capital investment of $33 million, including an additional $29 million payment made upon substantial completion[66] - Catalina Solar was acquired for approximately $127 million, with a net capital investment expected to be $128 million after factoring in cash reserves and transaction expenses[68] Operational Performance - Total operating costs and expenses for Q3 2025 were $317 million, slightly up from $308 million in Q3 2024[20] - The total operating income for the company was $112 million for the three months ended September 30, 2025, compared to $178 million for the same period in 2024, reflecting a decline of 37.0%[118] - Operating revenues for the Flexible Generation segment were $106 million for the three months ended September 30, 2025, an increase of 3.9% from $102 million in 2024[118] - Total operating revenues for the Renewables & Storage segment were $323 million for the three months ended September 30, 2025, a decrease of 15.9% from $384 million in 2024[118] Risk Management - The Company actively manages credit risk through established credit approval processes and monitoring of counterparties, aiming to mitigate potential losses from non-performance[94] - PG&E, a significant counterparty, has a credit rating below investment-grade, which poses potential risks to the Company[95] - The Company employs various credit risk management techniques, including credit approval processes and monitoring of counterparties' credit limits[94] Other Financial Metrics - The effective income tax rate for the three months ended September 30, 2025, was -106.9%, compared to 55.0% in 2024, indicating significant tax benefits[121] - The accumulated other comprehensive loss (OCL) attributable to Clearway Energy, Inc. was $(13) million for the three months ended September 30, 2025, compared to $1 million for the same period in 2024[101] - The Company incurred total expenses of $20 million and $22 million for O&M services for the three months ended September 30, 2025 and 2024, respectively, and $61 million and $59 million for the nine months ended September 30, 2025 and 2024, respectively[124]

Financial Results - Hippo Holdings Inc. announced financial results for Q3 2025, with a focus on non-GAAP financial information[4] - The report includes a reconciliation of non-GAAP financial measures to their nearest GAAP equivalents[5] - The financial results are part of the company's ongoing compliance with the Securities Exchange Act of 1934[6] - The report does not include specific performance metrics or future guidance as of the current document[4] Company Information - The company is classified as an emerging growth company under the Securities Act of 1933[3] - The company operates under the jurisdiction of Delaware and is listed on the New York Stock Exchange under the symbol HIPO[2] Reporting and Documentation - The company provided a press release, investor presentation, and historical supplemental financial information on November 5, 2025[4] - The quarterly investor presentation is dated November 5, 2025, highlighting key financial metrics[8] - The financial statements and exhibits are filed under Item 9.01 of the Current Report[7] - The report was signed by Guy Zeltser, Chief Financial Officer of Hippo Holdings Inc.[11]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Commission file number 001-36174 NMI Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 45-4914248 2100 Powell Street Emeryville , CA 94608 (Address of principal executive offices) (Zip Code) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the q ...

Revenue Growth - Revenue for the nine months ended September 30, 2025, was $581.9 million, a 128% increase compared to $255.2 million for the same period in 2024[103] - Revenue for the three months ended September 30, 2025, was $113.1 million, a 104% increase compared to $117.5 million for the same period in 2024[107] - The company has experienced strong growth since the commercial launch of its Aries products in 2020, with revenue increasing from $34.8 million in 2021 to $396.3 million in 2024[102] Expenses and Costs - Gross margin decreased by 150 basis points to 76.2% for the three months ended September 30, 2025, and by 200 basis points to 75.7% for the nine months ended September 30, 2025, compared to the same periods in 2024[104][110] - Operating expenses increased by $23.6 million, or 24%, for the three months ended September 30, 2025, primarily due to a 79% increase in headcount-related expenses[105] - Research and development expenses increased by $28.3 million, or 56%, for the three months ended September 30, 2025, driven by a 104% increase in headcount[111] - Total cost of revenue increased by $29.6 million, or 117%, for the three months ended September 30, 2025, compared to the same period in 2024[109] - Sales and marketing expenses decreased by $3.9 million, or 17%, for the three months ended September 30, 2025, primarily due to a decrease in non-cash stock-based compensation[113] - General and administrative expenses decreased by $0.7 million, or 3%, for the three months ended September 30, 2025, mainly due to a decrease in non-cash stock-based compensation[115] Income and Tax Benefits - For the three months ended September 30, 2025, interest income increased by $0.5 million, or 5%, to $10,912,000 compared to the same period in 2024[117] - For the nine months ended September 30, 2025, interest income increased by $9.0 million, or 38%, to $32,773,000 compared to the same period in 2024[118] - The income tax benefit increased by $33.9 million, or 352%, for the three months ended September 30, 2025, primarily due to excess tax benefits related to equity compensation[119] - The income tax benefit increased by $50.6 million, or 323%, for the nine months ended September 30, 2025, primarily due to excess tax benefits related to equity compensation[120] Profitability Metrics - Non-GAAP gross profit for the three months ended September 30, 2025, was $176,191,000, compared to $87,979,000 in 2024[123] - Non-GAAP operating income for the three months ended September 30, 2025, was $96,145,000, compared to $36,639,000 in 2024[125] - GAAP net income for the three months ended September 30, 2025, was $91,114,000, compared to a loss of $7,593,000 in 2024[128] Cash Flow and Financial Position - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $1,134.4 million[131] - The net cash provided by operating activities for the nine months ended September 30, 2025, was $224,041,000, an increase of $127,068,000 compared to 2024[133] - The company generated significant losses from operations in prior years, reflected in an accumulated deficit of $34.6 million as of September 30, 2025[132] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $224.0 million, an increase of $127.1 million compared to $97.0 million in 2024[134] - The increase in operating cash inflows was driven by a $282.3 million increase in net income, offset by a $90.9 million unfavorable change in operating assets and liabilities[134] - Net cash used in investing activities decreased to $168.7 million for the nine months ended September 30, 2025, down $497.5 million from $666.1 million in 2024[135] - The decrease in cash used in investing activities was primarily due to a $437.5 million increase in proceeds from sales and maturities of marketable securities[135] - Net cash provided by financing activities was $6.1 million for the nine months ended September 30, 2025, a decrease of $644.1 million compared to $650.2 million in 2024[136] - The decrease in financing activities was mainly due to a $667.4 million reduction in proceeds from the IPO net of underwriting discounts and commissions[136] Commitments and Risks - Operating lease commitments primarily include corporate offices, with further details available in the financial statements[137] - Purchase commitments are mainly related to software licenses and cloud hosting services, with additional information in the financial statements[138] - There have been no material changes to critical accounting policies and estimates since the last annual report[142] - As of September 30, 2025, there have been no material changes to interest rate and foreign currency exchange risks since December 31, 2024[144]

Financial Performance - Revenue for the three months ended September 30, 2025, increased by $98.4 million to $1,203.7 million, a 9% increase compared to $1,105.3 million in the same period of 2024[145]. - Gross profit for the three months ended September 30, 2025, improved by $11.3 million to $284.3 million, a 4% increase compared to $273.0 million in the same period of 2024[146]. - Net income for the three months ended September 30, 2025, decreased by 3% to $143.2 million compared to $148.1 million in the same period of 2024[1]. - EBITDA for the three months ended September 30, 2025, increased by 10% to $269.2 million, compared to $244.6 million in the same period of 2024[142]. - Total segment revenues for the three months ended September 30, 2025, were $1,229.4 million, up from $1,125.0 million in the same period of 2024[142]. - Revenue for the three months ended September 30, 2025, increased by 34% to $169.2 million compared to $125.9 million in 2024, driven by the acquisition of Albina Asphalt and a new processing plant[176]. - EBITDA for the same period improved by 18% to $39.7 million, although the EBITDA margin decreased to 23.4% from 26.8%[176]. - Revenue increased by $149.1 million for the nine months ended September 30, 2025, driven by contributions from acquired companies and mid-single digit price increases on aggregates and ready-mix[152]. - Revenue for the West segment increased by 1% to $921.7 million for the nine months ended September 30, 2025, with EBITDA rising by 2% to $177.5 million[161]. - Revenue for the Mountain segment decreased by 8% to $471.9 million for the nine months ended September 30, 2025, with EBITDA declining by 32% to $65.4 million[166]. - Revenue for the Central segment increased by 20% to $757.4 million for the nine months ended September 30, 2025, with EBITDA improving by 23% to $119.8 million[171]. Expenses and Costs - Selling, general and administrative expenses increased by $5.2 million to $69.1 million for the third quarter, primarily due to costs associated with acquired companies[147]. - Selling, general and administrative expenses rose by $27.8 million, mainly due to costs associated with acquired companies and increased labor-related expenses[154]. - Interest expense rose by $9.1 million to $23.0 million, driven by higher average debt balances from a new Term Loan B issued in March 2025[149]. - Interest expense increased by $18.8 million due to higher average debt balances from a new Term Loan B issued in March 2025[156]. - The effective tax rate decreased due to lower income before income taxes, resulting in a $600,000 decrease in income tax expense[151]. - Income tax expense decreased by $16.5 million, corresponding with lower income before income taxes[158]. Acquisitions and Growth Strategy - The company acquired High Desert Aggregate and Paving in Q3 2025, adding to its growth strategy through acquisitions[127]. - The acquisition of Albina Asphalt contributed an additional $10.7 million in revenue for the three months ended September 30, 2025[177]. - Total capital expenditures for the nine months ended September 30, 2025, amounted to $154.8 million, with an additional $663.5 million spent on growth initiatives, including $528.0 million on acquisitions[188][189]. Operational Efficiency and Initiatives - In 2023, the implementation of EDGE initiatives began, focusing on higher-margin bidding opportunities and operational efficiency[124]. - The Chief Excellence Officer position was created to lead standardization and process improvement efforts effective January 1, 2025[125]. - The Knife River Training Center provides training for new and existing employees, addressing industry-wide labor shortages[132]. Market and Project Backlog - Contracting services backlog as of September 30, 2025, was $995 million, with approximately 87% related to publicly funded projects[119]. - Expected completion of approximately $764 million of the backlog within 12 months following September 30, 2025[119]. - Public projects account for approximately 80% of historical contracting services revenue, providing stability through market cycles[118]. - Approximately 52% of the Infrastructure Investment and Jobs Act (IIJA) funding remains unspent in the company's operating markets[122]. Financial Position and Cash Flow - The company had unrestricted cash and cash equivalents of $30.7 million and working capital of $660.9 million as of September 30, 2025[184]. - Long-term debt increased by approximately $514.1 million due to the issuance of a new $500 million Term Loan B facility[196]. - Cash provided by operating activities decreased by $67.3 million to $82.6 million, largely due to higher working capital needs and a decrease in net income[191]. - The company expects capital expenditures for maintenance and improvement in 2025 to be between $160 million and $225 million[188]. Commodity and Interest Rate Risks - A hypothetical 1.00% increase in interest rates would raise the company's interest expense by $7.8 million over the next 12 months[210]. - The company had no outstanding interest rate hedges as of September 30, 2025[211]. - There were no material changes to commodity price risk compared to the previous year[212]. Non-GAAP Financial Measures - The company utilizes non-GAAP financial measures such as EBITDA and Adjusted EBITDA to provide clarity on operational results[203].

Financial Performance - Net interest income for Q3 2025 was $4,222 million, a 2.1% increase from $4,135 million in Q3 2024[13] - Noninterest income increased by 14.1% to $3,078 million in Q3 2025, compared to $2,698 million in Q3 2024[13] - Total net revenue for Q3 2025 reached $7,329 million, reflecting a 6.8% growth from $6,864 million in Q3 2024[13] - Net income attributable to U.S. Bancorp for the nine months ended September 30, 2025, was $5,525 million, up 19.2% from $4,636 million in the same period of 2024[13] - Earnings per share for Q3 2025 increased by 18.4% to $1.22, compared to $1.03 in Q3 2024[13] - Total net revenue for the first nine months of 2025 was $845 million (4.1%) higher than the same period in 2024, reflecting a 1.8% increase in net interest income and a 7.6% increase in noninterest income[21] - Total net revenue for Consumer and Business Banking increased by 4.8% to $1,887 million in Q3 2025 compared to Q3 2024[171] - Total net revenue for Q3 2025 was $465 million (6.8%) higher than Q3 2024, driven by a 2.1% increase in net interest income and a 14.1% increase in noninterest income[17] Asset Quality - Nonperforming assets decreased by 9.7% to $1,654 million as of September 30, 2025, down from $1,832 million[13] - The provision for credit losses in Q3 2025 was $14 million (2.5%) higher than in Q3 2024, attributed to loan portfolio growth[19] - The provision for credit losses for the first nine months of 2025 decreased by $69 million (4.1%) compared to the same period in 2024, driven by loan portfolio sales and improved credit quality[23] - The Company reported accruing loans 90 days or more past due totaling $840 million as of September 30, 2025, an increase from $810 million at December 31, 2024, with a ratio of 0.22% of total loans[69] - The delinquency ratio for total loans was 0.22% at September 30, 2025, compared to 0.21% at December 31, 2024[70] - Nonperforming loans totaled $1.61 billion at September 30, 2025, down from $1.79 billion at December 31, 2024, indicating a decrease of 9.7%[84] - The total allowance for credit losses is determined through systematic methodologies based on the loan portfolio segments[57] - The allowance for credit losses was $7.9 billion as of September 30, 2025, unchanged from December 31, 2024, with a decrease of $28 million (0.4%) attributed to loan sales and improved credit quality[100] Capital and Equity - Common equity tier 1 capital ratio increased to 10.9% as of September 30, 2025, compared to 10.6% at the end of 2024[13] - Total U.S. Bancorp shareholders' equity rose by 8.1% to $63,340 million as of September 30, 2025, from $58,578 million at the end of 2024[13] - The Company's common equity tier 1 capital as a percent of risk-weighted assets was 10.9 percent at September 30, 2025, compared to 10.6 percent at December 31, 2024[149] - The Company's total shareholders' equity increased to $63.3 billion at September 30, 2025, from $58.6 billion at December 31, 2024, primarily due to corporate earnings and changes in unrealized gains and losses on investment securities[151] Loans and Deposits - The loan portfolio increased to $382.5 billion as of September 30, 2025, up $2.7 billion (0.7%) from December 31, 2024, driven by an $8.9 billion (6.4%) increase in commercial loans[35] - Total deposits reached $526.1 billion at September 30, 2025, an increase of $7.8 billion (1.5%) from December 31, 2024, with noninterest-bearing deposits up $7.4 billion (8.8%)[47] - Total loans at period-end increased to $382.5 billion at September 30, 2025, compared to $379.8 billion at December 31, 2024[84] - Total deposits increased to $526,149 million as of September 30, 2025, compared to $518,309 million at the end of 2024[185] Interest Rate and Liquidity Management - The sensitivity of net interest income to a 50 basis point increase in interest rates is projected to be a decrease of 0.35% for the next 12 months[117] - The company remains relatively neutral to a parallel 50 basis point shift in interest rates, with asset and liability repricing closely aligned[118] - The Company reported total available liquidity of $312.4 billion as of September 30, 2025, compared to $286.6 billion at December 31, 2024[135] - The average daily Liquidity Coverage Ratio (LCR) was 107.3% for the three months ended September 30, 2025, up from 106.6% for the same period in 2024, indicating compliance with regulatory requirements[139] Investment Securities - Investment securities totaled $166.0 billion at September 30, 2025, reflecting a $1.4 billion (0.8%) increase from December 31, 2024, mainly due to favorable changes in net unrealized gains[41] - The Company reported net unrealized losses on available-for-sale investment securities of $5.1 billion as of September 30, 2025, down from $6.8 billion at December 31, 2024[42] - The total unrealized losses on investment securities as of September 30, 2025, amounted to $5.047 billion, with $1.498 billion attributed to U.S. Treasury and agencies securities[200] - Total available-for-sale investment securities reached $93,817 million with a fair value of $89,065 million and a weighted-average yield of 3.59%[204] Shareholder Returns - The Company authorized a share repurchase program of up to $5.0 billion effective September 13, 2024[152] - U.S. Bancorp's common stock dividends increased to $2,384 million in 2025, up from $2,325 million in 2024, reflecting a commitment to returning value to shareholders[193]

Financial Performance - Operating income for Q3 2025 was $6.5 million, a 315% increase compared to Q3 2024, exceeding street expectations [4]. - Adjusted EBITDA from Continuing Operations in Q3 2025 was $12.6 million, a 59% increase compared to Q3 2024, also ahead of street expectations [4]. - Net loss from continuing operations was $2.3 million in Q3 2025, significantly improved from a loss of $7.9 million in Q3 2024 [4]. - Revenues for the three months ended September 30, 2025, were $149.0 million, a decrease of 4.3% compared to $152.6 million for the same period in 2024 [25]. - Operating income for the three months ended September 30, 2025, was $6.5 million, compared to an operating income of $1.6 million for the same period in 2024 [25]. - Net income attributable to stockholders for the three months ended September 30, 2025, was $35.1 million, compared to a net loss of $5.3 million for the same period in 2024 [25]. - Basic and diluted earnings per share for the three months ended September 30, 2025, were $0.30, compared to a loss of $0.10 for the same period in 2024 [25]. - Total costs and expenses for the three months ended September 30, 2025, were $142.5 million, a decrease of 5.7% from $151.1 million in the same period in 2024 [25]. - Research and development costs for the three months ended September 30, 2025, were $0.3 million, down from $1.2 million in the same period in 2024 [25]. - The company reported a gain on debt extinguishment of $1.7 million for the three months ended September 30, 2025 [25]. - The company experienced a total other expense, net of $7.8 million for the three months ended September 30, 2025, compared to $10.0 million for the same period in 2024 [25]. - The company reported a net loss of $45.4 million for the nine months ended September 30, 2025, compared to a net income of $3.2 million in 2024 [27]. - Net cash used in operating activities was $65.9 million, compared to $96.2 million in the previous year, indicating a reduction in cash outflow [27]. - Net cash provided by investing activities increased to $172.4 million from $78.0 million, primarily due to proceeds from the sale of business and assets [27]. - Cash, cash equivalents, and restricted cash at the end of the period stood at $201.1 million, up from $127.9 million at the beginning of the period [27]. - Depreciation and amortization of long-lived assets decreased to $7.8 million from $13.7 million year-over-year [27]. - The impairment of long-lived assets increased to $9.9 million from $5.8 million, reflecting challenges in asset valuation [27]. - Borrowings on loan payable amounted to $75.4 million, while repayments on loan payable were $126.8 million, indicating a net cash outflow in financing activities [27]. - The company experienced a foreign exchange loss of $5.7 million, compared to a loss of $1.4 million in the previous year [27]. - Stock-based compensation expenses decreased to $2.2 million from $3.8 million, reflecting a reduction in equity-based incentives [27]. Revenue and Backlog - Backlog reached $393.5 million, a 56% increase compared to Q3 2024, with Global Parts and Services achieving the highest revenue and gross profit results in recent history [4]. - Global Parts & Services revenue in Q3 2025 was $68.4 million, up from $61.7 million in Q3 2024, driven by increased electricity demand [8]. - Babcock & Wilcox Thermal segment revenues increased to $118.3 million in Q3 2025 from $109.4 million in Q3 2024, representing a growth of 8.2% [29]. - Babcock & Wilcox Renewable segment revenues rose to $15.2 million in Q3 2025, up from $9.5 million in Q3 2024, marking a significant increase of 60.0% [29]. - Babcock & Wilcox Environmental segment revenues decreased to $15.5 million in Q3 2025 from $33.7 million in Q3 2024, a decline of 54.0% [29]. - Total revenues for Babcock & Wilcox were $149.0 million in Q3 2025, slightly down from $152.6 million in Q3 2024, a decrease of 2.4% [30]. - The backlog for Babcock & Wilcox Thermal segment surged to $334 million in September 2025, up from $169 million in September 2024, reflecting a growth of 97.0% [29]. - Total bookings for Babcock & Wilcox reached $130 million in Q3 2025, compared to $120 million in Q3 2024, an increase of 8.3% [29]. Strategic Initiatives - Signed a limited notice to proceed for a contract exceeding $1.5 billion with Applied Digital to deliver one gigawatt of efficient energy for an AI Data Center project [4]. - Introduced a full-year 2026 Adjusted EBITDA target range of $70 million to $85 million, representing approximately 80% year-over-year growth, excluding AI Data Center projects [4]. - Company plans to convert coal plants to natural gas in partnership with Denham Capital to support data center power demands in North America and Europe [7]. - The company is focused on improving its financial position and exploring strategic acquisitions to implement its growth strategy [21]. Asset and Liability Management - Cash and cash equivalents increased to $24.4 million from $23.4 million year-over-year [26]. - Accounts receivable – trade, net rose to $101.7 million compared to $94.5 million in the previous year [26]. - Total current assets increased to $479.7 million from $552.5 million year-over-year [26]. - Total assets decreased to $657.9 million from $727.0 million year-over-year [26]. - Accounts payable decreased to $75.6 million from $92.1 million year-over-year [26]. - Current borrowings increased to $70.3 million from $125.1 million year-over-year [26]. - Total current liabilities decreased to $401.0 million from $406.7 million year-over-year [26]. - Operating lease liabilities increased to $3.4 million from $3.2 million year-over-year [26]. - Pension and other post-retirement benefit liabilities increased to $179.0 million from $192.7 million year-over-year [26]. - Total liabilities decreased to $401.0 million from $406.7 million year-over-year [26].

Revenue Performance - Net revenues for the three months ended September 30, 2025, decreased by $0.961 million to $42.003 million compared to $42.964 million in the same period of 2024[148] - The company's top five customers accounted for 99.1% of net revenues for the nine months ended September 30, 2025, with Verizon and AT&T each contributing over 10%[146] - Net revenues decreased by $2.7 million to $126.7 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to a $3.6 million decrease in professional services and a $4.0 million impact from an expired customer contract[160] Expenses and Costs - Research and development expenses increased by $0.5 million to $10.8 million for the three months ended September 30, 2025, primarily due to higher personnel-related costs[150] - Total costs and expenses for the nine months ended September 30, 2025, decreased by $9.255 million to $105.744 million compared to $114.999 million in 2024[158] - Selling, general and administrative expenses decreased by $1.581 million to $12.174 million for the three months ended September 30, 2025, due to lower performance-based compensation[151] - Cost of revenues decreased by $3.3 million to $26.3 million for the nine months ended September 30, 2025, mainly due to lower employee expenses from restructuring measures[161] - Research and development expenses decreased by $1.6 million to $30.9 million for the nine months ended September 30, 2025, attributed to cost-saving initiatives[162] - Selling, general and administrative expenses decreased by $4.4 million to $35.4 million for the nine months ended September 30, 2025, primarily due to cost-saving initiatives and lower performance-based compensation[163] Income and Loss - Net loss for the nine months ended September 30, 2025, was $17.608 million, compared to a loss of $1.734 million in the same period of 2024, representing an increase in loss of $15.874 million[158] - Interest income rose significantly by $5.239 million to $5.404 million for the three months ended September 30, 2025, mainly due to interest from a federal tax refund[153] - Interest income increased by $5.4 million to $5.9 million for the nine months ended September 30, 2025, mainly due to a federal tax refund received[166] - Interest expense increased by $7.2 million to $19.8 million for the nine months ended September 30, 2025, driven by higher interest on the 2025 Term Loan[167] Cash Flow and Liquidity - Cash provided by operating activities was $41.9 million for the nine months ended September 30, 2025, compared to $15.2 million for the same period in 2024, driven by growth in cloud subscribers and a federal tax refund[177] - Cash used in investing activities was $10.2 million for the nine months ended September 30, 2025, compared to $9.1 million in the same period in 2024, primarily funding product development for the Cloud offering[178] - Cash used in financing activities was $30.3 million for the nine months ended September 30, 2025, compared to $5.4 million in the same period in 2024, mainly related to the 2025 Term Loan and repayment of the 2021 Senior Notes[179] - The Company had an aggregate of $34.8 million in cash and cash equivalents at September 30, 2025, with sufficient liquidity to meet obligations for at least the next twelve months[173] Foreign Currency Risk - The company is exposed to foreign currency translation risk due to certain foreign operations using local currencies, affecting comparability of financial results[192] - The company does not hold derivative instruments or engage in hedging activities, making it susceptible to foreign currency transaction risk[193] - Future fluctuations in exchange rates could impact the company's net sales, cost of sales, and expenses, with increased exposure expected if international activities in local currencies rise[194] Interest Rate Sensitivity - A hypothetical 100 basis point increase in interest rates would increase interest income by approximately $0.3 million annually based on cash and cash equivalents as of September 30, 2025[195] - Borrowings under the 2025 Term Loan Agreement bear interest at a rate equal to the secured overnight financing rate plus a margin of 7.00%, with a floor of 2.50%[196] - A hypothetical 100 basis point increase in interest rates would increase interest expense on the 2025 Term Loan by $1.8 million annually[196]

Revenue Growth - Total revenue for the three months ended September 30, 2025, increased by $50.7 million, or 37.8%, to $184.6 million compared to $133.9 million for the same period in 2024[181]. - ODR revenue for the three months ended September 30, 2025, increased by $48.4 million, or 52.0%, to $141.4 million compared to $93.0 million for the same period in 2024, driven by recent acquisitions[182]. - GCR revenue for the three months ended September 30, 2025, increased by $2.3 million, or 5.6%, to $43.2 million compared to $40.9 million for the same period in 2024, supported by Pioneer Power and Kent Island operations[184]. - Total revenue for the nine months ended September 30, 2025 increased by $84.8 million, or 22.6%, to $459.9 million compared to $375.1 million in 2024[196]. - ODR revenue for the nine months ended September 30, 2025 increased by $90.7 million, or 36.3%, to $340.7 million, driven by recent acquisitions[197]. - GCR revenue for the nine months ended September 30, 2025 decreased by $5.9 million, or 4.7%, to $119.2 million, primarily due to a strategic shift towards ODR[198]. Profitability - Total gross profit for the three months ended September 30, 2025, was $44.7 million, representing a gross profit margin of 24.2%, compared to $36.1 million and 27.0% in 2024[180]. - Gross profit for the three months ended September 30, 2025 increased by $8.6 million, or 23.7%, to $44.7 million compared to the same period in 2024[185]. - ODR gross profit rose by $6.0 million, or 20.3%, while GCR gross profit increased by $2.5 million, or 39.3%[185]. - Net income for the three months ended September 30, 2025, was $8.8 million, or 4.8% of total revenue, compared to $7.5 million, or 5.6% in 2024[180]. - Net income for the nine months ended September 30, 2025 was $26.8 million, representing a 27.5% increase from $21.0 million in 2024[195]. Expenses - Selling, general and administrative expenses for the three months ended September 30, 2025, were $28.3 million, or 15.3% of total revenue, compared to $23.7 million, or 17.7% in 2024[180]. - SG&A expenses for the three months ended September 30, 2025 increased by $4.6 million, or 19.3%, but as a percentage of revenue decreased to 15.3% from 17.7%[187]. - Selling, General and Administrative (SG&A) expenses increased by approximately $11.7 million, or 16.7%, to $81.5 million for the nine months ended September 30, 2025, compared to $69.8 million in the prior year[201]. - Amortization of intangibles for the three months ended September 30, 2025 increased by $1.5 million, or 176.5%, to $2.4 million due to recent acquisitions[191]. - Interest expense for the three months ended September 30, 2025 increased by $0.8 million, or 161.3%, to $1.2 million, reflecting higher borrowings[192]. - Interest expense increased by 68.1% to $2.3 million for the nine months ended September 30, 2025, compared to $1.4 million in the prior year[205]. Acquisitions - The acquisition of Pioneer Power was completed for a purchase price of $66.1 million, expanding the company's footprint in the Midwest[174]. - The acquisition of Consolidated Mechanical was completed for $23.0 million, with an additional earnout of up to $2.0 million potentially payable over 2026 and 2027[175]. - The acquisition of Kent Island was completed for $15.0 million, with an earnout of up to $5.0 million potentially payable over 2025 and 2026[176]. - The Company aims to expand its geographic footprint and enhance its offerings through strategic acquisitions, including the acquisition of Pioneer Power, which serves critical facilities in the Upper Midwest[219]. - Acquisition-related retention and contingent consideration expenses were $1.8 million for the nine months ended September 30, 2025, down from $2.3 million in the prior year[202]. Backlog and Future Revenue - The Company’s ODR backlog as of September 30, 2025, was $241.6 million, reflecting an increase from $225.3 million as of December 31, 2024, with an estimated 44% expected to be recognized as revenue over the remainder of 2025[209]. - The GCR backlog decreased to $121.2 million as of September 30, 2025, from $140.0 million at December 31, 2024, with an estimated 31% expected to be recognized as revenue over the remainder of 2025[210]. - The Company aims to achieve a revenue mix of 70%-80% from the ODR segment by 2025, with ODR revenue accounting for 74.1% of total consolidated revenue for the nine months ended September 30, 2025[215]. Cash Flow and Liquidity - The Company generated $17.6 million in cash from operating activities for the nine months ended September 30, 2025, compared to $17.5 million for the same period in 2024, reflecting a net income increase of $5.7 million[230]. - Cash flows used in investing activities were $67.9 million for the nine months ended September 30, 2025, primarily due to a $65.7 million outflow associated with the Pioneer Power acquisition[233]. - Cash flows provided by financing activities were $15.2 million for the nine months ended September 30, 2025, compared to cash flows used of $8.4 million for the same period in 2024[235]. - The Company borrowed $41.8 million on its revolving credit facility during the nine months ended September 30, 2025, with additional inflows of $6.3 million from share sales for employee tax withholding[235]. - The Company believes its current cash and cash equivalents, along with available borrowing capacity, will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months[240]. Financial Position - The Company reported a net working capital of $65.6 million as of September 30, 2025, down from $69.3 million at the end of 2024[229]. - The current ratio as of September 30, 2025, was 1.43, slightly down from 1.46 at the end of 2024, indicating a stable liquidity position[229]. - Long-term debt increased to $61.9 million as of September 30, 2025, from $27.2 million as of December 31, 2024[241]. - The Company had approximately $111.0 million in surety bonds outstanding as of September 30, 2025, compared to $109.3 million as of December 31, 2024[242]. - Total available funding capacity as of September 30, 2025, was $70.3 million, including $9.8 million in cash and cash equivalents[237]. Market Conditions - The Company continues to monitor the impact of inflation and tariffs, particularly the 50% tariffs on certain steel and aluminum products implemented in 2025, which could affect costs and supply availability[224]. - The Company is focused on enhancing operational efficiency and margin expansion by evolving its offerings to meet current market demands[217]. - The Company continues to focus on smaller, higher-margin projects in its GCR segment to improve profitability and reduce risks associated with larger, complex projects[216]. - A hypothetical 100 basis point increase in interest rates would result in an approximate $0.9 million increase in annualized interest expense on variable-rate debt[253]. - The Company expects growth in its ODR business to positively impact cash flow trends, which are less sensitive to cash flow issues from large GCR projects[239].

Financial Performance - Generated record Contract Services segment revenues of $297.0 million, a 4.5% increase compared to $284.3 million in Q3 2024[6] - Reported net loss of $14.0 million, or $(0.17) per diluted share, while adjusted net income was $31.5 million, or $0.36 per adjusted diluted share[9] - Quarterly adjusted EBITDA of $174.7 million, with an adjusted EBITDA percentage of 54.1%[10][12] - Total revenues for the three months ended September 30, 2025, were $322.744 million, a slight decrease from $324.647 million in the same period of 2024[33] - Contract Services revenue increased to $296.970 million from $284.313 million year-over-year, reflecting a growth of approximately 4.5%[33] - Net loss attributable to common shareholders for Q3 2025 was $14.011 million, compared to a net income of $39.496 million in Q2 2025[33] - Adjusted EBITDA for the three months ended September 30, 2025, was $174,702,000, compared to $168,374,000 in 2024, showing a 3.9% increase[39] - Total revenues for the three months ended September 30, 2025, were $296,970,000, up from $284,313,000 in 2024, indicating a 4.5% growth[41] - Gross margin for the three months ended September 30, 2025, was $136,419,000, with a gross margin percentage of 45.9%, compared to 40.2% in 2024[41] - The company’s diluted earnings per share for the three months ended September 30, 2025, was $(0.17), compared to $(0.07) in 2024[38] Cash Flow and Liquidity - Discretionary cash flow for the quarter was $116.7 million, a 13.2% increase compared to Q3 2024[6] - Increased full-year 2025 discretionary cash flow guidance to a range of $450 to $470 million[6][18] - Free cash flow for the three months ended September 30, 2025, was $33,463,000, compared to $52,500,000 in 2024, reflecting a decrease of 36.3%[43] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $404,878,000, compared to $209,502,000 in 2024, reflecting a 93% increase[37] - Cash and cash equivalents decreased to $724,000 from $4.750 million, indicating a decline in liquidity[35] Debt and Financial Position - Total debt outstanding was $2.7 billion as of September 30, 2025, with $1.5 billion available on its ABL Facility[11] - Long-term debt increased to $2.609 billion from $2.582 billion, indicating a rise in financial leverage[35] - The company reported a significant increase in interest expense to $56.406 million in Q3 2025, up from $45.755 million in Q2 2025[33] Operational Changes - Successfully implemented a new ERP platform and divested Mexico operations to enhance liquidity[4] - The company anticipates continued integration of CSI Compressco LP into operations, which may impact future performance and capital expenditures[28] Other Financial Matters - Other Services segment revenue decreased by 36.1% to $25.8 million compared to Q3 2024[8] - The company reported a loss on disposal of business amounting to $33,349,000 for the three months ended September 30, 2025[39] - The company incurred transaction expenses of $1,523,000 for the three months ended September 30, 2025[39] - The company has a settlement offer with the Texas Comptroller's office for outstanding sales and use tax matters totaling $28,000,000[40]