Financial Performance - Fourth-quarter sales were $478 million, down 8% from $522 million in the prior-year quarter, with Portfolio Optimization initiatives reducing sales by approximately $38 million, or 7%[4] - Adjusted EBITDA for the fourth quarter was $119 million, down 4% from $124 million in the prior-year quarter, with Portfolio Optimization contributing to a $11 million decline[6] - Net income was $32 million, up from $16 million in the prior year, with income from continuing operations at $33 million, or $0.73 per diluted share compared to $0.39 last year[6] - Full-year fiscal 2025 sales totaled $1.824 billion, down 14% from the prior year, with Portfolio Optimization initiatives reducing sales by approximately $208 million, or 10%[22] - Adjusted EBITDA for fiscal 2025 was $401 million, down from $459 million in the prior year, reflecting the impact of Portfolio Optimization and lower pricing[24] - Cash flows from operating activities totaled $134 million, compared to $462 million in the prior year, primarily due to lower current-year earnings and higher inventory levels[25] - Sales for Q4 2025 were $478 million, a decrease of 8.4% from $522 million in Q4 2024[53] - Gross profit for Q4 2025 was $159 million, down 8.6% from $174 million in Q4 2024[53] - Operating income for Q4 2025 increased to $61 million, compared to $32 million in Q4 2024[53] - Net income for Q4 2025 was $32 million, compared to $16 million in Q4 2024, reflecting a 100% increase[53] - Total assets decreased to $4,611 million in 2025 from $5,645 million in 2024, a decline of 18.3%[55] - Cash and cash equivalents at the end of Q4 2025 were $215 million, down from $300 million in Q4 2024[56] - Long-term debt increased to $1,384 million in 2025 from $1,349 million in 2024, an increase of 2.6%[55] - The diluted earnings per share from continuing operations for Q4 2025 was $0.73, up from $0.39 in Q4 2024[53] - Free cash flows for the three months ended September 30, 2025, were $6 million, down from $43 million in the same period of 2024, indicating a decline of 86%[60] - Total cash flows provided by operating activities from continuing operations were $40 million for the three months ended September 30, 2025, compared to $80 million in 2024, a decline of 50%[60] - The ongoing free cash flow conversion rate for the three months ended September 30, 2025, was 44%, down from 71% in the same period of 2024[60] Segment Performance - Life Sciences segment sales were $173 million in the fourth quarter, down 10% year-over-year, primarily due to Portfolio Optimization initiatives[10] - Personal Care sales in the fourth quarter were $151 million, a decrease of 7% compared to the prior-year quarter, but delivered 5% sales growth excluding Portfolio Optimization actions[14] - Specialty Additives sales were $131 million in the fourth quarter, down 9% year-over-year, with Portfolio Optimization actions reducing sales by approximately $4 million[17] - Intermediates sales totaled $33 million in the fourth quarter, a decrease of 8% compared to the prior-year quarter, driven by lower overall pricing and merchant volumes[19] - Operating income for the Life Sciences segment was $39 million for the three months ended September 30, 2025, compared to $43 million in 2024, a decrease of 9%[58] - The Personal Care segment saw an operating income increase to $26 million in 2025 from $14 million in 2024, marking an 86% increase[58] - The Specialty Additives segment reported an operating income of $5 million for the three months ended September 30, 2025, compared to $9 million in 2024, a decrease of 44%[58] Cost Management and Optimization - The company expects incremental cost savings from manufacturing network optimization to range from $50 million to $55 million until volumes in China recover[35] - Ashland aims to achieve approximately $30 million in cost savings under a $90 million program and generate $20 million in incremental sales by scaling high-quality business lines[35] - Higher costs at consolidated sites and lower volumes in Asia-Pacific and MEAI regions have impacted operational efficiency and cost realization[35] - Ashland Inc. incurred $10 million in other plant optimization costs across various segments for the three months ended September 30, 2025[58] - The company incurred $10 million in other plant optimization costs for Q3 2025, compared to $5 million in Q3 2024[63] - Restructuring, separation, and other costs amounted to $4 million in Q3 2025, up from $2 million in Q3 2024[64] Future Outlook - Sales are projected to be between $1,835 million and $1,905 million, indicating organic growth of approximately 1% to 5% year-over-year[30] - Adjusted EBITDA is expected to range from $400 million to $430 million, with adjusted diluted earnings per share growth anticipated to be in double digits[30] - Ongoing free cash flow conversion is projected to be around 50% of adjusted EBITDA, with capital expenditures estimated at approximately $100 million[30] - The demand environment remains resilient in Life Sciences and Personal Care markets, while Specialty Additives and Intermediates markets face challenges[30] - The company is focused on advancing innovation, scaling global platforms, and driving cost and productivity initiatives to support margin strength[34] - Ashland's fiscal 2026 guidance reflects a prudent view of current market conditions, with expectations for a return to growth and renewed momentum across its businesses[34] Impairments and Other Financial Adjustments - The company reported a goodwill impairment of $706 million for the year ended September 30, 2025[53] - The company reported a Goodwill impairment of $706 million for the year ended September 30, 2025, significantly impacting overall financial performance[64] - The company faced a loss on divestitures of $(14) million for the year ended September 30, 2025[72] - Unrealized gains on securities for Q3 2025 were $(15) million, compared to $(21) million in Q3 2024[68] - The company recognized $7 million and $12 million of net periodic pension and other postretirement costs for fiscal years 2025 and 2024, respectively[73] - These costs include service cost, interest cost, expected return on plan assets, and amortization of prior service credit[73] Regulatory and Market Conditions - Tariff-related uncertainties persist, and the company will continue to monitor regulatory changes and execute mitigation plans[30]

Revenue Performance - Total revenue for the first quarter of fiscal 2026 was $107.3 million, an increase of 21.4% compared to $88.4 million in the same period of fiscal 2025[111]. - Revenue in North America increased by $10.4 million (24.7%) to $52.6 million, driven by a 54% increase in product demand and a 15% increase in services[111]. - Revenue from product sales increased by 22.9% to $75.1 million, while services revenue rose by 18.0% to $32.2 million[115]. Gross Margin and Expenses - Gross margin for the first quarter of fiscal 2026 was $35.7 million, representing an 80.2% increase from $19.8 million in the same quarter of fiscal 2025[116]. - Research and development expenses decreased by $3.3 million (31.8%) to $7.1 million, primarily due to cost management initiatives[117]. Acquisitions and Transactions - The acquisition of 4RF Limited for $18.2 million enhances Aviat's product offerings in the industrial wireless access market[106]. - The NEC transaction was completed for approximately $54.5 million, which included $32.2 million in cash and $22.3 million in common stock[109]. Income and Cash Flow - For the first three months of fiscal 2026, the company reported an income before income taxes of $2.5 million, a significant improvement from a loss of $17.4 million in the same period last year, representing a $19.9 million change or a 114.4% increase[121]. - Net cash used in operating activities for the first three months of fiscal 2026 was $(11.7) million, an improvement of $15.4 million compared to $(27.2) million in the prior year[124]. - Net cash used in investing activities decreased to $1.7 million in the first three months of fiscal 2026 from $21.2 million in the prior year, primarily due to prior year acquisition payments[125]. - Financing cash flows provided $18.5 million in the first three months of fiscal 2026, down from $34.3 million in the prior year, mainly due to reduced net borrowings[126]. Debt and Interest - The company had $92.2 million outstanding under its Term Loan as of September 26, 2025, having borrowed $20 million and repaid $0.9 million during the first three months of fiscal 2026[129]. - The effective interest rate on the outstanding Term Loan borrowings as of September 26, 2025, was 6.7%[139]. - A 10% change in interest rates is estimated to impact annual interest expense by $0.6 million on the company's outstanding long-term debt as of September 26, 2025[140]. Cash Position and Future Outlook - The company's total cash and cash equivalents as of September 26, 2025, were $64.8 million, with $22.7 million held in the United States and $42.2 million (65%) held outside the United States[123]. - The company believes its existing cash, available borrowings, and future cash collections will be sufficient for its anticipated requirements for at least the next 12 months[128]. Foreign Currency Impact - As of September 26, 2025, the cumulative translation adjustment decreased stockholders' equity by $19.7 million due to foreign currency translation risks[134]. Operational Strategies - The company operates an e-commerce platform to provide low-cost services and fast delivery to customers[110]. - The company plans to mitigate the impact of new U.S. tariffs by optimizing sourcing and operations[110]. Interest Expense - Interest expense increased by $0.6 million (53.5%) to $1.7 million due to incremental Term Loan borrowings[119].

Revenue and Income - Revenue for the three months ended September 30, 2025, was $252,440,000, representing a 11.2% increase from $227,088,000 in the same period of 2024[88] - Net income for the three months ended September 30, 2025, was $2,260,000, compared to a net loss of $9,211,000 in the same period of 2024[88] - For the nine months ended September 30, 2025, total revenue was $738,872,000, an increase of 11% from $664,290,000 in 2024[144] - Subscription revenue increased by $23,657,000, or 11%, to $232,211,000, while professional services and other revenue rose by 35% to $9,141,000[134] Customer Metrics - Recurring revenue accounted for 95% of total revenue for the three months ended September 30, 2025, consistent with 96% in the same period of 2024[88] - The number of new enterprise platform customers added in the three months ended September 30, 2025, was 437, a 13% increase from 386 in the same period of 2024[98] - The number of customers with annual contract values of $100,000 or greater increased by 16% to 2,156 as of September 30, 2025, from 1,853 in 2024[98] - The dollar-based net expansion rate for the twelve months ended September 30, 2025, was 106%, slightly down from 108% in 2024[101] Operating Performance - Calculated current billings for the three months ended September 30, 2025, were $267,506,000, up from $248,441,000 in the same period of 2024, reflecting a growth of 7.4%[93] - Free cash flow for the three months ended September 30, 2025, was $51,630,000, compared to $52,711,000 in the same period of 2024[96] - The company reported a gross margin of 78% for both the three and nine months ended September 30, 2025[144] - Gross profit for the three months ended September 30, 2025, was $195,687,000, reflecting an 11% increase from $176,589,000 in 2024[135] Expenses - Total operating expenses for the three months ended September 30, 2025, were $188,551,000, up from $178,672,000 in 2024, marking a 5% increase[136] - Research and development expenses increased by 17% to $56,265,000 for the three months ended September 30, 2025, up from $48,020,000 in 2024[138] - Sales and marketing expenses for the three months ended September 30, 2025, were $99,949,000, a slight increase of 1% from $99,083,000 in 2024[136] - General and administrative expenses included $15.5 million in termination benefits related to the passing of the Chairman and CEO for the nine months ended September 30, 2025[128] Non-GAAP Metrics - For the three months ended September 30, 2025, the company reported a non-GAAP income from operations of $58.913 million, compared to $44.975 million for the same period in 2024, representing a 31% increase[106] - The non-GAAP operating margin improved to 23.3% in Q3 2025, up from 19.8% in Q3 2024[106] - Non-GAAP net income for the nine months ended September 30, 2025, was $137.125 million, compared to $107.925 million for the same period in 2024, reflecting a 27% increase[108] - The diluted non-GAAP earnings per share increased to $0.42 for Q3 2025, compared to $0.32 for Q3 2024, marking a 31% rise[108] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 30, 2025, was $183,720,000, compared to $136,357,000 in the same period of 2024[96] - Cash and cash equivalents totaled $171.9 million, with short-term investments at $211.7 million as of September 30, 2025[154] - Deferred revenue reached $810.5 million, with $639.6 million expected to be recognized as revenue in the next 12 months[157] - The company acquired Vulcan and Apex for a combined $196.2 million in cash in 2025[158] Other Financial Metrics - The provision for income taxes for the three months ended September 30, 2025, was $550,000, a significant decrease of 90% from $5,328,000 in 2024[140] - Interest income decreased by $4.99 million (28%) to $12.6 million, while interest expense decreased by $2.97 million (12%) to $21.36 million[152] - Provision for income taxes decreased by $2.35 million (22%) to $8.39 million[153] - The Term Loan interest rates ranged from 7.18% to 7.22% from January to September 2025[162]

Financial Performance - Net sales for Q3 2025 decreased by 22% to $55.3 million from $71.3 million in Q3 2024[5] - Net income for Q3 2025 was $0.6 million, or $0.10 per diluted share, compared to $4.7 million, or $0.75 per diluted share, in Q3 2024[9] - Adjusted EBITDA for Q3 2025 was $3.5 million, down from $8.7 million in Q3 2024[11] - Operating profit for the three months ended September 27, 2025, was $1.72 million, a decline of 74.7% from $6.79 million in the same period of 2024[28] - Net income from continuing operations for the three months ended September 27, 2025, was $578,936, compared to $4.67 million for the same period in 2024, representing a decrease of 87.6%[29] - Basic earnings per share from continuing operations for the three months ended September 27, 2025, were $0.10, down from $0.75 in the same period of 2024[29] - For the three months ended September 27, 2025, the net income from continuing operations was $579,000, a significant decrease from $4,669,000 for the same period in 2024[36] - Adjusted net income from continuing operations for the three months ended September 27, 2025, was $804,000, compared to $4,669,000 in the prior year, reflecting a decline of approximately 82.8%[36] - The adjusted earnings per share (EPS) from continuing operations for the three months ended September 27, 2025, was $0.13, down from $0.75 in the same period of 2024[36] - For the nine months ended September 27, 2025, the net income from continuing operations was $4,782,000, down from $11,676,000 in the same period of 2024[36] - The adjusted net income from continuing operations for the nine months ended September 27, 2025, was $6,495,000, compared to $11,676,000 in the prior year, reflecting a decline of approximately 44.0%[36] - The adjusted EPS from continuing operations for the nine months ended September 27, 2025, was $1.06, compared to $1.88 in the same period of 2024[36] Cost and Expenses - Gross margin for Q3 2025 was 22.3%, down from 25.5% in Q3 2024, primarily due to increased raw material costs[7] - Selling, general and administrative expenses decreased by $0.7 million, or 6.5%, in Q3 2025 compared to Q3 2024[8] - Interest expense for the three months ended September 27, 2025, was $688,000, slightly down from $710,000 in the same period of 2024[37] - Depreciation and amortization for the three months ended September 27, 2025, was $1,633,000, compared to $2,033,000 in the same period of 2024[37] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $9.23 million, down from $14.01 million at the end of December 2024, a decrease of 34.5%[31] - The company reported a net cash provided by operating activities of $5.02 million for the nine months ended September 27, 2025, compared to $8.35 million for the same period in 2024, a decrease of 39.5%[35] - Total current assets decreased to $100.57 million as of September 27, 2025, from $115.62 million as of December 28, 2024, a decline of 13.0%[31] - Total liabilities decreased to $95.77 million as of September 27, 2025, from $114.62 million as of December 28, 2024, a reduction of 16.4%[33] Shareholder Actions - The company repurchased approximately $3.0 million worth of stock, totaling 118,000 shares year-to-date[5] - Cash dividends per share remained stable at $0.11 for both the three months ended September 27, 2025, and September 28, 2024[29] Strategic Initiatives - The company secured a new $100 million revolving credit facility to enhance financial flexibility[5] - Year-to-date debt reduction amounted to $7.0 million, demonstrating a focus on capital allocation[5] - The company is focused on operational agility and efficiency to navigate current market uncertainties[4] Adjusted Metrics - Adjusted net income for Q3 2025 was $0.8 million, or $0.13 per diluted share, compared to $4.7 million, or $0.75 per diluted share, in Q3 2024[10] - Adjusted EBITDA from continuing operations for the three months ended September 27, 2025, was $3,483,000, compared to $8,745,000 for the same period in 2024, indicating a decrease of about 60%[37] - Gross margin for the nine months ended September 27, 2025, was $43.82 million, down 15.7% from $51.91 million in the same period of 2024[28]

Production and Sales - In Q3 2025, Ur-Energy dried and packaged 93,523 pounds of U₃O₈ and shipped 70,190 pounds to the conversion facility, holding 278,150 pounds of U₃O₈ as of September 30, 2025[4] - The company sold 110,000 pounds of U₃O₈ at an average price of $57.48 per pound, generating revenue of $6.3 million in Q3 2025[8] - Total sales in 2025 are projected at 440,000 pounds of U₃O₈ at an average price of $61.77 per pound, expecting revenues of $27.2 million[9] - U3O8 production for 2025 YTD reached 292,716 pounds, with Q2 production at 128,970 pounds[26] - The average production grade for Q3 2025 was 66 ppm, with year-to-date average production grade at approximately 58 ppm[5] - Cash costs per pound of produced inventory decreased slightly from $43.61 in Q2 2025 to $43.00 in Q3 2025[8] - Cash cost per pound for Q2 2025 is $40.55, a decrease from $43.43 in Q1 2025[26] Financial Position - As of September 30, 2025, Ur-Energy had cash and cash equivalents of $52.0 million, a decrease of approximately $24.1 million from the $76.1 million balance on December 31, 2024[8] - In-process inventory value for Q2 2025 is $509,000, reflecting ongoing production activities[26] - Ending inventory of U3O8 for Q2 2025 is 370,681 pounds, with a total value of $20,897,000[26] Development and Construction - Construction at Shirley Basin is well advanced, with the first header house for Phase 2 in commissioning and uranium production startup anticipated in Q1 2026[8] - The first header house in Shirley Basin has been fabricated, with onsite construction and main pipeline installation continuing[19] - Development and construction activities have commenced at the Shirley Basin facility, Ur-Energy's second in situ recovery uranium facility[27] Exploration and Future Plans - Exploration programs initiated in the Great Divide Basin included the installation of 18 aquifer test wells to enhance understanding of local hydrogeology[20] - The company plans to evaluate the potential to advance the Lost Soldier Project through the FAST-41 permitting process if exploration work is successful[21] - The company anticipates a ramp-up to steady state full production levels at Lost Creek, with ongoing optimization efforts[29] - Ur-Energy is focused on capitalizing on the resurgence of the nuclear industry and advancing exploration programs[29] Strategic Inventory - Non-produced pounds acquired in Q4 2024 are 550,000 pounds, indicating a strategic inventory increase[26] Stock Information - Ur-Energy's common shares trade on the NYSE American under the symbol "URG" and on the Toronto Stock Exchange under "URE"[27]

Financial Performance - Total revenues for Q3 2025 were $2,066 million, a decrease of 11.1% compared to $2,324 million in Q3 2024[2]. - Net earnings for Q3 2025 were $148 million, down 70.8% from $507 million in Q3 2024, resulting in a diluted earnings per share of $0.57[2][3]. - Operating income for the nine months ended September 30, 2025, was $695 million, a decline of 55.9% from $1,577 million in the same period of 2024[2]. - Total operating expenses for Q3 2025 were $1,793 million, slightly down from $1,797 million in Q3 2024[2]. - Cash from operating activities for the nine months ended September 30, 2025, was $2,698 million, compared to $2,701 million in the same period of 2024[5]. - The company reported impairments of $141 million in Q3 2025, while there were no impairments reported in Q3 2024[2][5]. - Net earnings for Q3 2025 reached $296 million, a significant increase from $148 million in Q2 2025, while year-to-date earnings totaled $1,125 million[7]. - Non-GAAP adjusted earnings for Q3 2025 were $902 million, compared to $267 million in Q2 2025, with year-to-date adjusted earnings at $1,560 million[7]. - Non-GAAP cash flow for Q3 2025 was $2,812 million, up from $895 million in Q2 2025, with total cash flow year-to-date at $4,042 million[7]. - The company reported a debt to capitalization ratio of 34% for 2025, a slight improvement from 35% in 2024[9]. Production and Operations - Average oil production for Q3 2025 was 143.3 Mbbls/d, with total production volumes for oil and NGLs averaging 303.6 Mbbls/d[11]. - Natural gas production for Q3 2025 was 1,847 MMcf/d, reflecting a slight decrease from 1,925 MMcf/d in Q2 2025[11]. - The company anticipates continued growth in production volumes and cash flow, supported by ongoing operational efficiencies and market expansion strategies[7]. - USA Operations produced an average of 142.9 Mbbls/d of oil year-to-date in 2025, compared to 137.0 Mbbls/d in the same period of 2024, reflecting a 2.9% increase[12]. - Total revenues from USA Operations, excluding realized gains and losses on risk management, reached $3,517 million year-to-date in 2025, up from $4,267 million in 2024[13]. - The netback for total USA Operations was $28.56 per BOE in Q3 2025, an increase from $26.07 per BOE in Q3 2024, representing a 9.5% rise[16]. - Canadian Operations generated $1,922 million in revenues, excluding realized gains and losses on risk management, year-to-date in 2025, compared to $1,289 million in 2024, marking a significant increase[13]. - The total production of oil and NGLs in USA Operations was 229.1 Mbbls/d in Q3 2025, a slight decrease from 231.0 Mbbls/d in Q2 2025[12]. - Total oil production for USA operations averaged 142.9 Mbbls/d in Q3 2025, a slight increase from 137.0 Mbbls/d in Q2 2025[21]. - Total Production for USA Operations averaged 314.2 MBOE/d year-to-date in 2025, a slight increase from 311.9 MBOE/d in Q2 2025[26]. Capital Expenditures and Investments - Capital expenditures for Q3 2025 were $544 million, compared to $538 million in Q3 2024[5]. - Total capital expenditures for 2025 reached $1,682 million, with $544 million in Q3 2025 alone, compared to $2,303 million for the full year 2024[28]. - Total USA operations capital expenditures amounted to $1,224 million in 2025, with $416 million spent in Q3 2025[28]. - Total Canadian operations capital expenditures were $454 million in 2025, with $126 million in Q3 2025[28]. - The company drilled a total of 177 net wells in 2025, with 57 wells drilled in Q3 2025, compared to 268 wells for the full year 2024[30]. - The company completed 217 net wells on production in 2025, with 63 completions in Q3 2025, reflecting ongoing operational efficiency[30]. Debt and Equity - As of September 30, 2025, total assets were $19,388 million, an increase from $19,254 million as of December 31, 2024[4]. - The company’s long-term debt decreased to $4,393 million as of September 30, 2025, from $4,853 million at the end of 2024[4]. - Shareholders' equity as of September 30, 2025, was $10,234 million, a slight decrease from $10,331 million at the end of 2024[4]. - The company's long-term debt, including the current portion, stood at $5,212 million, resulting in a debt to capitalization ratio of 34%[36]. - Net debt, defined as long-term debt minus cash and cash equivalents, is $5,187 million[40]. Market and Pricing - The average oil price for USA operations in Q3 2025 is $67.59 per barrel, up from $66.23 in Q2 2025, indicating a 2.1% increase[18]. - The price per BOE for total operations was $32.57 in Q3 2025, compared to $29.69 in Q3 2024, indicating an increase of 9.5%[16]. - Total operations' natural gas price for Q3 2025 is $2.32 per Mcf, a significant increase from $1.79 in Q2 2025, representing a 29.6% rise[18]. - The average oil price for total operations in Q3 2025 was $66.13/bbl, compared to $64.49/bbl in Q2 2025, reflecting a 2.5% increase[20]. - Natural gas price for total operations was $2.50/Mcf in Q3 2025, up from $2.01/Mcf in Q2 2025, representing a 24.4% increase[20]. - The total operations' oil and NGLs price in Q3 2025 is $51.49 per barrel, up from $49.34 in Q2 2025, reflecting a 4.4% increase[19]. Other Key Metrics - The company incurred impairments totaling $1,321 million over the trailing 12 months[38]. - The company reported net acquisitions and divestitures totaling $360 million in 2025, with a significant divestiture of Uinta assets completed on January 22, 2025[28]. - Total sales volumes for YTD 2025 reached 166,982,360 BOE, with Q3 2025 volumes at 28,696,540 BOE[47]. - Operating margin for total operations in Q3 2025 is $635 million, with total operating expenses at $3,315 million[45]. - The company reported a debt to EBITDA ratio of 1.8 times and a debt to adjusted EBITDA ratio of 1.2 times[38].

Financial Performance - For the three months ended September 30, 2025, Arteris generated revenue of $17.4 million, with a net loss of $9.0 million and a net loss per share of $0.21[87] - Total revenue for the three months ended September 30, 2025, was $17.4 million, an increase of 18% compared to $14.7 million for the same period in 2024[120] - Revenue for the nine months ended September 30, 2025 increased by 19% to $50.4 million, compared to $42.2 million for the same period in 2024[134] - 59.6% of revenue for the nine months ended September 30, 2025, was derived from international sales, with 24.4% specifically from customers in China[95] Growth Indicators - As of September 30, 2025, the Annual Contract Value (ACV) was $69.4 million, up from $56.4 million in 2024, and the total ACV plus royalties was $74.9 million, compared to $60.5 million in 2024[99] - During the three months ended September 30, 2025, Arteris had 23 Confirmed Design Starts, an increase from 14 in the same period of 2024, indicating growth in customer activity[100] - Remaining Performance Obligations (RPO) amounted to $104.7 million as of September 30, 2025, compared to $78.4 million in 2024, reflecting a significant increase in contracted future revenue[102] Expenses and Costs - Total operating expenses increased by $3.2 million, or 15%, to $24.4 million for the three months ended September 30, 2025[124] - Cost of revenue rose by $0.3 million, or 21%, to $1.8 million, driven by higher employee-related expenses due to increased headcount of application engineers[123] - Research and development (R&D) expenses increased by $0.7 million, or 6%, to $12.6 million, attributed to higher employee-related costs and stock-based compensation[125] - Sales and marketing (S&M) expenses surged by $1.9 million, or 38%, to $6.9 million, mainly due to increased headcount and stock-based compensation[126] - General and administrative (G&A) expenses rose by $0.6 million, or 13%, to $4.9 million, primarily from higher employee-related costs and professional fees[127] Cash Flow and Investments - Net cash provided by operating activities was $3.6 million for the nine months ended September 30, 2025, compared to $1.9 million for the same period in 2024[147] - As of September 30, 2025, the company had $39.0 million in cash and cash equivalents and short-term investments[145] - Net cash provided by investing activities for the nine months ended September 30, 2024 was $2.9 million, primarily from proceeds of available-for-sale securities and certificate of deposit[152] - Net cash provided by financing activities for the nine months ended September 30, 2025 was $1.3 million, mainly from proceeds of stock options and employee stock purchase plan[153] Market and Industry Trends - The company’s growth is driven by increasing complexity in System-on-Chip (SoC) designs, particularly in sectors like automotive and AI, which has positively impacted financial performance[85] - The semiconductor industry is characterized by cyclical trends, which can lead to fluctuations in customer demand and revenue for Arteris[97] - The company anticipates that the demand for its interconnect IP solutions will continue to grow, particularly in the automotive market, which is crucial for revenue stability[90] Strategic Initiatives - Arteris is exploring growth opportunities through potential acquisitions to enhance its market position and product offerings[94] - The company expects R&D expenses to continue increasing in absolute terms in the short to medium term but decrease as a percentage of revenue with new product launches[111] Other Financial Metrics - Interest expense for the three months ended September 30, 2025 was $49,000, a decrease of 11% from $55,000 in the same period of 2024[128] - Other income (expense), net decreased by 18% to $636,000 for the three months ended September 30, 2025, compared to $775,000 for the same period in 2024[129] - Loss from equity method investment was $484,000 for the three months ended September 30, 2025, down 17% from $580,000 in the same period of 2024[130] Tax and Accounting - Provision for income taxes increased by 19% to $1.5 million for the nine months ended September 30, 2025, compared to $1.3 million for the same period in 2024[143] - The company has no off-balance sheet financing arrangements or relationships with unconsolidated entities during the periods presented[155] - There have been no material changes to critical accounting estimates compared to those described in the 2024 Form 10-K[157] - The company is an emerging growth company under the JOBS Act, allowing it to delay the adoption of certain accounting standards[159] - The financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates due to the extended transition period[159] - Quantitative and qualitative disclosures about market risk are not required for the company as a smaller reporting company[160]

Acquisition and Expansion - The company completed the acquisition of Torcatt Enterprises Limitada for $16.0 million, expanding its vessel and guest capacity in the Galápagos Islands[83]. Financial Performance - The company reported that tour revenues consist of guest ticket sales and other related services, with direct costs including payroll, food, and fuel expenses[87]. - Tour revenues for Q3 2025 increased by $34.2 million, or 17%, to $240.2 million compared to $206.0 million in Q3 2024, driven by a 12% increase in guest nights sold and guests traveled[109]. - For the nine months ended September 30, 2025, tour revenues rose by $91.7 million, or 18%, to $587.8 million, with an 11% increase in guest nights sold and a 9% increase in guests traveled, excluding Thomson Group[110]. - Operating income for Q3 2025 was $35.97 million, a 22% increase from $29.48 million in Q3 2024[122]. - Net income for Q3 2025 was a loss of $4.57 million, compared to a profit of $25.20 million in Q3 2024, reflecting a decrease of $20.63 million or 82%[120]. - Adjusted EBITDA for the three months ended September 30, 2025 was $57.3 million, compared to $45.8 million for the same period in 2024[135]. - Operating income for the three months ended September 30, 2025 increased by $1.6 million to $13.2 million compared to $11.7 million for the same period in 2024[127]. - Operating income for the nine months ended September 30, 2025 was $19.6 million, up from $10.1 million for the same period in 2024[128]. Revenue Segmentation - The company operates two segments: the Lindblad segment and the Land Experiences segment, which includes various adventure travel brands[82]. - The Lindblad segment's tour revenues for Q3 2025 increased by $16.3 million, or 13%, while the Land Experiences segment saw an increase of $17.9 million, or 21%[122]. - Tour revenues for the Land Experiences Segment for the three months ended September 30, 2025 increased by $17.9 million, or 21%, to $102.6 million compared to $84.7 million for the same period in 2024[130]. - For the nine months ended September 30, 2025, tour revenues for the Land Experiences Segment increased by $44.6 million, or 27%, to $208.1 million compared to $163.5 million for the same period in 2024[131]. Operational Metrics - The company utilizes various operational metrics, including Adjusted EBITDA and Net Yield, to analyze performance and financial condition[90]. - Adjusted EBITDA is defined as net income excluding depreciation, interest, and other non-operating items, providing insight into operating results[92]. - Net yield per available guest night increased by 9% to $1,314 from $1,205 in 2024 for the three months ended September 30, 2025[125]. Costs and Expenses - Total cost of tours for Q3 2025 increased by $14.6 million, or 13%, to $124.4 million, attributed to higher operating costs from additional voyages and trips[111]. - General and administrative expenses for Q3 2025 rose by $5.8 million, or 20%, to $34.8 million, mainly due to higher stock-based compensation and personnel costs[113]. - Selling and marketing expenses for Q3 2025 increased by $5.1 million, or 20%, to $30.1 million, driven by higher royalties and commission expenses associated with increased revenues[115]. - Depreciation and amortization expenses for Q3 2025 increased by $2.2 million, or 17%, to $14.9 million, primarily due to depreciation of assets supporting the vessel fleet[117]. Cash Flow and Debt - Net cash provided by operating activities increased to $96.9 million for the nine months ended September 30, 2025, compared to $90.7 million for the same period in 2024, reflecting a $6.2 million increase[2]. - The company had $261.8 million in unrestricted cash and cash equivalents as of September 30, 2025[3]. - Long-term debt obligations totaled $675.0 million as of September 30, 2025, with cash on hand expected to cover operations and debt service for at least the next 12 months[4]. - The company issued $675.0 million of 7.00% senior secured notes in August 2025, primarily to repay prior senior secured notes[6]. - The Revolving Credit Facility was amended to increase commitments from $45.0 million to $60.0 million, extending the maturity date to August 2030[7]. - As of September 30, 2025, the company had a working capital deficit of $74.8 million, improved from a deficit of $114.0 million as of December 31, 2024[8]. Guest Experience and Partnerships - The relationship with National Geographic has been extended through 2040, enhancing guest experiences through expert-led expeditions[74]. - The company emphasizes eco-conscious travel and partnerships with organizations like the World Wildlife Fund to promote sustainable tourism[76]. Guest Metrics - Occupancy for the Lindblad segment improved to 88% in Q3 2025, up from 82% in Q3 2024, with guest nights sold increasing to 84,143 from 74,845[123]. - The number of guests for the Land Experiences Segment increased to 8,746 for the three months ended September 30, 2025, up from 7,806 in 2024[129]. - The company’s Lindblad brand tour revenues are traditionally higher in the first and third quarters, influenced by seasonal demand and maintenance schedules[106].

Revenue Performance - For the nine months ended September 30, 2025, approximately 57% of revenues were derived from customers in the United States[114]. - Revenues for the three months ended September 30, 2025, increased by $16.0 million (10%) to $169.9 million compared to the same period in 2024, driven by increased demand for subscription services[126]. - For the nine months ended September 30, 2025, revenues increased by $45.5 million (10%) to $493.8 million compared to the same period in 2024, with 83% of the increase from existing customers[127]. - The company expects revenue growth from new and existing customers to continue, supported by a strong market position[128]. Cost and Expenses - Operating expenses for the three months ended September 30, 2025, were 49% of revenues, down from 52% in the same period of 2024[125]. - Cost of revenues for the three months ended September 30, 2025, was 16% of revenues, down from 19% in the same period of 2024[125]. - Cost of revenues for the three months ended September 30, 2025, decreased by $1.0 million (4%) to $27.8 million, primarily due to a reduction in shared cloud platform costs[129]. - Cost of revenues for the nine months ended September 30, 2025, increased by $3.2 million (4%) to $85.6 million, mainly due to increased personnel costs[130]. - Research and development expenses for the three months ended September 30, 2025, remained relatively flat at $28.9 million, while for the nine months, they increased by $4.8 million (6%) to $83.6 million[131][132]. - Sales and marketing expenses for the three months ended September 30, 2025, increased by $2.6 million (8%) to $32.7 million, and for the nine months, they rose by $9.5 million (10%) to $103.8 million[134][135]. - General and administrative expenses for the three months ended September 30, 2025, decreased by $0.6 million (3%) to $18.5 million, while for the nine months, they increased by $2.7 million (5%) to $53.0 million[136][137]. Profitability - Revenues for the three months ended September 30, 2025, were recognized at 100% with a gross profit margin of 84%[125]. - Income from operations for the three months ended September 30, 2025, increased to 35% of revenues compared to 29% in the same period of 2024[125]. - Adjusted EBITDA for the three months ended September 30, 2025, was $82.6 million, representing 49% of revenues, compared to $69.7 million or 45% of revenues for the same period in 2024[150]. - Net income for the three months ended September 30, 2025, was $50.3 million, maintaining a net income margin of 30%, consistent with the same period in 2024[150]. Taxation - The income tax provision for the three months ended September 30, 2025, was 8% of income before taxes, compared to 4% in the same period of 2024[125]. - The income tax provision for the three months ended September 30, 2025, increased by $8.8 million (144%) to $10.9 million, mainly due to changes in tax benefits[140]. - The company expects a reduction in cash taxes paid for U.S. federal and state income taxes for the fiscal year ended December 31, 2025, due to deductions for domestic research and development expenditures[153]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $233.7 million, an increase from $196.4 million in the same period in 2024[151]. - Cash used in investing activities during the nine months ended September 30, 2025, was $97.3 million, compared to $59.5 million in the same period in 2024[151]. - Share repurchases in the nine months ended September 30, 2025, totaled $138.8 million, compared to $97.2 million in the same period in 2024[155]. - The company has approximately $205.2 million remaining under its share repurchase program as of September 30, 2025[159]. Economic Environment - The current macroeconomic environment characterized by inflation and high interest rates may adversely affect long-term business and customer spending on IT security[115]. - The company continues to evaluate the impact of the OBBBA on its financial results, particularly regarding research and development expenses and depreciation[124]. Market Metrics - Net dollar expansion rates were 104% and 103% as of September 30, 2025, and September 30, 2024, respectively[146]. - Total other income, net for the three months ended September 30, 2025, decreased by $2.0 million (28%) to $5.3 million, primarily due to unfavorable foreign currency changes[138]. Lease Obligations - As of September 30, 2025, fixed operating lease payment obligations were $69.2 million, with $12.6 million expected to be paid within the next 12 months[157].

Operations and Growth - As of September 30, 2025, InnovAge served approximately 7,890 PACE participants and operated 20 PACE centers across six states[116] - InnovAge has acquired four PACE organizations since fiscal year 2019, expanding into one new state and five new markets[130] - The company plans to continue investing in its centers and value-based care model, expecting expenses to increase in absolute dollars to support growth[130] - The company plans to continue investing in resources and initiatives to enhance service quality for participants[167] - The company may pursue acquisitions or investments in complementary businesses, services, and technologies in the future[171] Financial Performance - Total revenues for the three months ended September 30, 2025, were $236.1 million, an increase of $30.9 million, or 15.1%, compared to $205.1 million for the same period in 2024[142] - Capitation revenue was $235.8 million for the three months ended September 30, 2025, reflecting a $31.0 million increase, or 15.1%, driven by a 4.7% increase in capitation rates and a 9.9% increase in member months[143] - For the three months ended September 30, 2025, net income was $7.7 million, compared to a net loss of $5.7 million for the same period in 2024, representing a significant turnaround[161] - The increase in net income margin to 3.2% in 2025 from a net loss margin of 2.8% in 2024 reflects improved operational efficiency[162] - Operating income for the three months ended September 30, 2025, was $8.3 million, compared to a loss of $4.9 million for the same period in 2024[142] Costs and Expenses - Cost of care, excluding depreciation and amortization, represented approximately 78% of revenue for the three months ended September 30, 2025[127] - The company experienced increased costs due to labor market pressures and competition, impacting staffing and enrollment capacity[118] - Sales and marketing expenses increased to $7.6 million for the three months ended September 30, 2025, up $1.1 million, or 17.1%, compared to $6.5 million for the same period in 2024[146] - Corporate, general and administrative expenses rose to $30.3 million for the three months ended September 30, 2025, an increase of $2.7 million, or 9.9%, compared to $27.5 million for the same period in 2024[147] - Cost of care (excluding depreciation and amortization) was $75.9 million for the three months ended September 30, 2025, an increase of $12.5 million, or 19.7%, compared to $63.4 million for the same period in 2024[145] Cash Flow and Liquidity - The company had cash and cash equivalents of $67.1 million as of September 30, 2025, an increase of $3.0 million from June 30, 2025[166] - For the three months ended September 30, 2025, net cash provided by operating activities was $3,924,000, a significant increase of $11,440,000 compared to a net cash used of $7,516,000 in the same period of 2024[176] - The overall net change in cash, cash equivalents, and restricted cash improved to $3,099,000 in 2025 from a decrease of $17,928,000 in 2024, reflecting a positive cash flow trend[176] - The net cash used in investing activities decreased to $814,000 in 2025 from $2,790,000 in 2024, primarily due to $3.7 million of net proceeds from asset sales[177] - Net cash used in financing activities decreased significantly from $7,622,000 in 2024 to $11,000 in 2025, attributed to a lack of share repurchases in the current year[178] Regulatory and Market Environment - The OBBBA, adopted in July 2025, mandates significant reductions in federal Medicaid spending, which may decrease Medicaid enrollment among PACE participants[121] - The company continues to monitor processing delays in Medicaid redetermination applications, which could impact financial performance[120] - There have been no material changes to the company's quantitative and qualitative disclosures about market risk for the three months ended September 30, 2025[185] - The company emphasizes that actual results may differ from estimates and assumptions used in financial reporting, which could impact reported results of operations and financial condition[182] Future Outlook - The company anticipates general and administrative expenses to decrease as a percentage of revenue over the long term, despite expected increases in absolute dollars due to public company costs[139] - The company intends to retain substantially all available funds and future earnings for business development and debt repayment, with no anticipated cash dividends in the foreseeable future[174] - The company qualifies as an "emerging growth company" and expects to maintain this status through the end of fiscal year 2026, allowing it to take advantage of certain reporting exemptions[179] - The company plans to utilize longer phase-in periods for adopting new accounting standards under the JOBS Act, which may affect comparability with other companies[180]