WWW.THEHACKETTGROUP.COM Contact: Robert A. Ramirez, CFO, 305-375-8005 or rramirez@thehackettgroup.com The Hackett Group Announces Third Quarter 2025 Results and Intent to Launch Dutch Tender Offer MIAMI – November 4, 2025 – The Hackett Group, Inc. (NASDAQ: HCKT), a leading generative artificial intelligence (Gen AI) consultancy and executive advisory firm that enables Digital World Class ® performance, today announced its financial results for the third quarter, which ended on September 26, 2025. "We report ...

Financing and Debt Management - The Company refinanced its existing senior credit facility, securing loans totaling $430,000, all borrowed in full on August 29, 2025[138][139]. - The Loans accrue interest at a term SOFR rate ranging from 7.50% to 8.00% and a reference rate ranging from 6.50% to 7.00%[140]. - The Financing Agreement requires the Company to maintain a minimum liquidity of $10,000 until March 31, 2026, and $20,000 thereafter[142]. - As of September 30, 2025, the outstanding secured indebtedness under the Financing Agreement is $419,908, with a maturity date of August 29, 2029[203]. - The interest rate on the company's borrowings under the Financing Agreement was 12.05% as of September 30, 2025, exposing the company to interest rate fluctuations[222]. - The company faces risks related to refinancing its debt and potential adverse impacts on its financial condition if unable to meet obligations[209]. Business Transformation and Costs - The Company incurred $31 and $1,309 in business transformation costs during the six months ended September 30, 2025 and September 30, 2024, respectively[152]. - The transformation program is expected to yield more than $25,000 in annual cash expense savings[153]. - The company incurred total business transformation and severance costs of $341 and $536 for the three and six months ended September 30, 2025, respectively[167]. - The Company has initiated a business transformation project, including a new global cloud-based ERP system[151]. Revenue and Financial Performance - Net revenue for the three months ended September 30, 2025, was $140,377, an increase of 18.2% compared to $118,728 for the same period in 2024[156]. - Net revenue for the six months ended September 30, 2025, was $271,303, reflecting a 14.6% increase from $236,717 in 2024[156]. - On Device Solutions revenue increased by $14,050 or 17.0% to $96,464 for the three months ended September 30, 2025, driven by higher device volumes internationally[159]. - App Growth Platform revenue for the three months ended September 30, 2025, increased by $7,339 or 19.7% to $44,685, primarily due to increased advertising exchange revenue[161]. - Revenue share increased by $6,757 or 12.0% to $63,093 for the three months ended September 30, 2025, representing 44.9% of total net revenue[168]. Expenses and Losses - Total costs of revenue and operating expenses for the three months ended September 30, 2025, were $133,843, a slight increase of 1.2% from $132,270 in 2024[163]. - Product development expenses for the three months ended September 30, 2025, were $10,979, an increase of 16.4% from $9,433 in 2024[163]. - Sales and marketing expenses decreased by $1,441 or 9.1% to $14,446 for the three months ended September 30, 2025, and was 10.3% as a percentage of total net revenue compared to 13.4% for the same period in 2024[183]. - General and administrative expenses decreased by $8,093 or 19.2% to $34,083 for the three months ended September 30, 2025, compared to $42,176 for the same period in 2024[188]. - Interest expense, net, increased by $2,722 or 31.0% for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to increased interest rates and higher average outstanding borrowings[193]. - The company recorded a loss on extinguishment of debt of $9,795 for the three months ended September 30, 2025, compared to the same period in 2024[198]. - Net loss for the three months ended September 30, 2025, was $21,395, a decrease of 14.4% compared to a net loss of $24,986 in 2024[156]. Cash Flow and Investments - As of September 30, 2025, the company had unrestricted cash of approximately $38,846 and restricted cash of approximately $438[199]. - The company incurred a net loss of $21,395 for the three months ended September 30, 2025, while generating cash from operating activities of $14,460[199]. - Cash provided by operating activities for the six months ended September 30, 2025, was $23,248, a significant increase of $33,319 compared to $(10,071) for the same period in 2024[212][213]. - Net cash used in investing activities for the six months ended September 30, 2025, was $15,386, an increase of 14.8% from $13,408 in 2024[212][214]. - Proceeds from borrowings, net of original issue discount, amounted to $418,700 for the six months ended September 30, 2025, a substantial increase of 1,001.8% compared to $38,000 in 2024[212][215]. - The company reported a net cash used in financing activities of $8,232 for the six months ended September 30, 2025, compared to a net cash provided of $23,372 in 2024[215][218]. Market Conditions and Challenges - The Company is actively monitoring macroeconomic conditions and geopolitical developments that may impact its business[128][135]. - The company is facing challenges due to declining sales volumes of new mobile devices, influenced by inflation and economic uncertainty[130]. - The company is exploring options to raise additional capital through its ATM program or the sale of equity securities, which may dilute existing stockholders' ownership[208]. - The company has minimum purchase commitments under hosting agreements totaling approximately $213,379 over the next five fiscal years[210]. - As of September 30, 2025, the company was in compliance with all covenants under the Financing Agreement[207].

Financial Performance - Net revenue for Q3 2025 was $820.314 million, a slight increase from $805.858 million in Q3 2024, while net revenue for the nine months ended September 30, 2025, was $2.398568 billion, down from $2.40433 billion in the same period last year[19]. - Operating income for Q3 2025 was $61.730 million, compared to $63.487 million in Q3 2024, with a total operating income of $164.152 million for the nine months ended September 30, 2025, down from $166.065 million in the previous year[19]. - Net income attributable to AdaptHealth Corp. for Q3 2025 was $24.509 million, an increase from $22.859 million in Q3 2024, while net income for the nine months ended September 30, 2025, was $31.976 million, down from $40.160 million in the same period last year[19]. - The company reported a comprehensive income of $25.146 million for Q3 2025, compared to $20.732 million in Q3 2024[21]. - Net income for the nine months ended September 30, 2025, was $35,499, a decrease of 18.5% compared to $43,377 in 2024[27]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $453,538, compared to $488,057 for the same period in 2024, reflecting a decrease of approximately 7.1%[108]. - For the three months ended September 30, 2025, net income attributable to AdaptHealth Corp. was $24.5 million, compared to $22.9 million for the same period in 2024, representing an increase of 7.2%[165]. - Basic net income per share for the three months ended September 30, 2025, was $0.17, up from $0.16 in the same period of 2024, reflecting a growth of 6.3%[165]. Revenue Breakdown - Insurance revenue for the three months ended September 30, 2025, was $503.6 million, up from $490.1 million in 2024, reflecting a growth of 2.5%[77]. - Government revenue for the three months ended September 30, 2025, increased to $217.7 million from $208.3 million in 2024, marking a growth of 2.0%[77]. - Patient pay revenue for the three months ended September 30, 2025, decreased to $99.0 million from $107.5 million in 2024, a decline of 7.0%[77]. - Total net revenue from fixed monthly equipment reimbursements increased to $282.5 million for the three months ended September 30, 2025, compared to $262.3 million in 2024, a growth of 7.7%[103]. - Sleep Health segment generated $354.8 million in net revenue for the three months ended September 30, 2025, up from $335.8 million in 2024, reflecting a growth of 5.9%[103]. - Respiratory Health segment reported net revenue of $177.0 million for the three months ended September 30, 2025, compared to $164.2 million in 2024, marking an increase of 7.8%[103]. - Diabetes Health segment's net revenue was $150.1 million for the three months ended September 30, 2025, up from $141.1 million in 2024, indicating a growth of 6.9%[103]. - Wellness at Home segment saw a decline in net revenue to $138.4 million for the three months ended September 30, 2025, down from $164.8 million in 2024, a decrease of 16.0%[103]. Assets and Liabilities - Total assets as of September 30, 2025, were $4.383523 billion, a decrease from $4.486947 billion as of December 31, 2024[17]. - Total liabilities as of September 30, 2025, were $2.758672 billion, down from $2.908829 billion as of December 31, 2024[17]. - Cash and cash equivalents decreased to $80.357 million as of September 30, 2025, from $109.747 million as of December 31, 2024[17]. - As of September 30, 2025, total stockholders' equity amounted to $1,624,851,000, with an accumulated deficit of $530,202,000[23]. - The company experienced a decrease in the accumulated deficit, which improved to $(530.202) million as of September 30, 2025, from $(562.178) million as of December 31, 2024[17]. - Long-term debt as of September 30, 2025, was $1,760,180,000, down from $1,981,171,000 on December 31, 2024[133]. Cash Flow and Investments - Net cash provided by operating activities increased to $418,587, up 6.1% from $391,424 in the prior year[27]. - The company incurred a net cash used in investing activities of $178,722, a decrease of 20% compared to $223,403 in 2024[27]. - Cash at the end of the period was $80,357, down from $100,180 in the previous year, representing a decrease of 19.8%[27]. - The company made payments for business acquisitions totaling $18,561 in 2025, with no such payments reported in 2024[27]. - The company reported a gain on the sale of businesses amounting to $32,225 in 2025[27]. Expenses and Costs - General and administrative expenses for Q3 2025 were $90.111 million, slightly up from $87.313 million in Q3 2024[19]. - Total depreciation and amortization, including patient equipment depreciation, was $284,421, an increase of 3.4% from $274,797 in 2024[27]. - Labor costs for the nine months ended September 30, 2025, were $552,851, with the highest contribution from Sleep Health at $248,507[106]. - The company reported a total patient equipment depreciation of $253,711 for the nine months ended September 30, 2025, compared to $240,774 for the same period in 2024, indicating an increase of approximately 5.4%[113]. - The company recognized an income tax expense of $10.6 million for the three months ended September 30, 2025, compared to $8.1 million in 2024, marking a 30.9% increase[175]. Equity and Stock - The weighted average common shares outstanding for Q3 2025 were 135.345 million, compared to 134.303 million in Q3 2024[19]. - The balance of common stock increased to 135,425 shares by September 30, 2025, up from 134,602 shares at the end of December 2024[23]. - The Company recognized equity-based compensation expense of $16.7 million during the nine months ended September 30, 2025, compared to $10.6 million for the same period in 2024[158]. - The Company granted 1,579,775 shares of restricted stock units to employees during the nine months ended September 30, 2025, with a grant-date fair value of $16.9 million[152]. - At September 30, 2025, there was $35.8 million of unrecognized compensation expense related to equity-based compensation awards, expected to be recognized over a weighted-average period of 2.0 years[160]. Legal and Compliance - The Company is under investigation by the U.S. Attorney's Office for the Southern District of New York regarding potential false claims related to ventilator billing from January 1, 2015, to the present, but the office does not currently intend to pursue claims against the Company[181]. - A class action complaint was filed against the Company by the Allegheny County Employees' Retirement System, alleging violations of federal securities laws related to billing practices for diabetes products and compliance programs[183]. - The Company is cooperating with multiple investigations regarding potential false claims related to billing for humidifiers and respiratory devices, with investigations ongoing as of March 2025[191][192]. - The Company intends to vigorously defend against allegations in the Wu Derivative Complaint, which relates to the same issues as the Allegheny County Complaint[186]. - The settlement related to the Allegheny County Consolidated Complaint is expected to consist of a cash payment primarily funded by the Company's insurance carriers, pending court approval[184].

Financial Performance - Net Sales for Q3 2025 decreased by $26 million, or 1%, to $2,190 million from $2,216 million in Q3 2024, primarily due to lower pricing and volumes in the Americas [138]. - Income from Operations for Q3 2025 decreased by $44 million, or 16%, to $234 million from $278 million in Q3 2024, attributed to lower packaging prices and commodity inflation [139]. - Net Income for Q3 2025 was $142 million, compared to $165 million in Q3 2024, reflecting a decrease of $23 million [137]. - For the first nine months of 2025, Net Sales decreased by $198 million, or 3%, to $6,514 million from $6,712 million in the same period of 2024, impacted by the Augusta Divestiture and reduced paperboard volumes [143]. - Income from Operations for the first nine months of 2025 decreased by $232 million, or 26%, to $648 million from $880 million in the same period of 2024, due to the Augusta Divestiture and commodity inflation [144]. - Total net sales for the third quarter of 2025 were $2,190 million, a decrease of 1.2% compared to $2,216 million in the same period of 2024 [153]. - Income from operations for the third quarter of 2025 was $234 million, down 15.8% from $278 million in the third quarter of 2024 [153]. - The company reported net income of $315 million for the first nine months of 2025, with net sales amounting to $4,994 million [170]. Cash Flow and Investments - For the first nine months of 2025, net cash provided by operating activities was $320 million, a decrease from $351 million in the same period of 2024 [164]. - Net cash used in investing activities for the first nine months of 2025 totaled $736 million, significantly higher than $102 million in the same period of 2024 [165]. - Capital spending for the first nine months of 2025 was $808 million, driven by the construction of a new recycled paperboard manufacturing facility in Waco, Texas [165]. - The company completed a $100 million tax-exempt green bond transaction in May 2025, with net proceeds of $99 million used for facility construction [166]. Debt and Interest Expenses - Interest Expense, Net for Q3 2025 was $53 million, down from $58 million in Q3 2024, primarily due to increased capitalized interest related to the Waco project [140]. - Interest Expense, Net for the first nine months of 2025 was $157 million, compared to $177 million in the same period of 2024, also due to increased capitalized interest [145]. - As of September 30, 2025, the Company maintained a maximum Consolidated Total Leverage Ratio of 3.76 to 1.00, compliant with the covenant limit of less than 4.25 to 1.00 [181]. - The Company reported a minimum Consolidated Interest Expense Ratio of 6.93 to 1.00 as of September 30, 2025, exceeding the required minimum of 3.00 to 1.00 [182]. - The Company had active interest rate swap agreements with a combined notional amount of $500 million, expiring on May 1, 2027, to manage interest rate risk [190]. Operational Highlights - Innovation sales growth contributed $52 million in Q3 2025, driven by sustainable consumer packaging solutions [138]. - The Company is focusing on developing innovative packaging products and expanding market share while reducing costs through operational improvements [135]. - The company experienced a decrease in income from operations due to lower pricing and higher commodity costs, partially offset by cost savings and productivity improvements [155]. - Net sales in the Americas Paperboard Packaging segment decreased due to lower pricing and packaging sales, while the International Paperboard Packaging segment saw an increase driven by innovation and higher volumes [154][156]. Receivables and Payables - Receivables sold and derecognized for the nine months ended September 30, 2025, were $2,725 million, compared to $2,687 million in 2024, representing an increase of 1.4% [176]. - The Company sold receivables related to supply chain financing arrangements amounting to $828 million for the nine months ended September 30, 2025, up from $793 million in 2024, reflecting a growth of 4.4% [177]. - Fees associated with the sale of receivables for the nine months ended September 30, 2025, were $43 million, down from $49 million in 2024, indicating a decrease of 12.2% [178]. - Accounts Payable included $32 million to suppliers participating in the supplier finance program as of September 30, 2025, compared to $30 million at December 31, 2024 [179]. - The deferred purchase price at September 30, 2025, was $47 million, an increase from $35 million in 2024 [176]. - Pledged receivables at September 30, 2025, were $140 million, down from $171 million in 2024, indicating a decrease of 18.1% [176]. Asset Valuation - The Europe reporting unit's fair value exceeded its carrying value by 24%, with goodwill totaling $534 million as of September 30, 2025 [187].

Revenue Performance - Revenues for the third quarter of 2025 decreased by 3.6% to $979.1 million compared to $1,016.1 million in the third quarter of 2024, primarily due to a decline in unit volume in the Americas [99]. - The Americas segment reported revenues of $732.7 million, down 5.0% from $771.5 million in the same period last year [96]. - The EMEA segment saw a revenue increase of 3.5% to $150.1 million, compared to $145.0 million in the third quarter of 2024 [96]. - Bolzoni's revenues decreased by 10.9% to $87.0 million in the third quarter of 2025, compared to $97.6 million in the same period last year [96]. - Bolzoni's revenues decreased by 12.2% to $2,846.1 million in the first nine months of 2025 from $3,240.7 million in the same period of 2024, primarily due to a decline in unit volume [106]. Profitability and Income - Net income attributable to stockholders for the third quarter of 2025 was a loss of $2.3 million, a significant decline from a profit of $17.2 million in the same quarter of 2024 [97]. - The diluted earnings per share for the third quarter of 2025 was a loss of $0.13, compared to earnings of $0.97 in the third quarter of 2024 [97]. - The company reported an operating profit of $2.3 million in Q3 2025, down from $33.1 million in Q3 2024, largely due to tariff costs of approximately $40 million and lower unit volumes [101]. - Operating profit in the Americas decreased to $21.1 million in Q3 2025 from $40.9 million in Q3 2024, attributed to lower gross profit and overhead absorption rates [102]. - EMEA experienced an operating loss of $16.9 million in Q3 2025, compared to a loss of $9.6 million in Q3 2024, driven by unfavorable pricing and increased material costs [103]. - The net loss attributable to stockholders was $2.3 million in Q3 2025, a significant decline from net income of $17.2 million in Q3 2024 [105]. - For the first nine months of 2025, the operating profit decreased from $212.5 million in 2024 to $15.1 million, primarily due to lower gross profit and approximately $60 million in tariff costs [107]. - JAPIC's operating loss increased to $19.1 million in the first nine months of 2025 from $15.3 million in the same period of 2024, mainly due to lower gross profit and higher material costs [110]. Cash Flow and Financing - Net cash provided by operating activities decreased by $60.4 million in the first nine months of 2025 compared to the same period in 2024, primarily due to changes in net income and increased employee-related payments [113]. - The company entered into a $300.0 million secured revolving credit facility in Q2 2025, which can be increased to $400.0 million, maturing on June 24, 2030 [116]. - As of September 30, 2025, the book value of assets held as collateral under the revolving credit facility was approximately $1.1 billion [117]. - The Company has a U.S. borrowing capacity of $210.0 million and a non-U.S. borrowing capacity of $90.0 million, with total availability of $225.1 million as of September 30, 2025 [119]. - The Term Loan outstanding amount is $215.0 million, with a net amount outstanding of $212.7 million after discounts and fees, and an applicable interest rate of 7.78% [123]. Backlog and Bookings - The backlog of lift truck orders as of September 30, 2025, was approximately $1.35 billion, down from $2.3 billion in the previous year [98]. - The Company’s backlog at the end of Q3 2025 was $1.35 billion, down from $1.65 billion at the end of Q2 2025, indicating a reduction in new bookings [138]. - Dollar value bookings improved to $380 million in Q3 2025, up from $330 million in the prior quarter, driven by gains in the EMEA and JAPIC regions [133]. Strategic Initiatives and Future Outlook - The company completed a strategic realignment of Nuvera Fuel Cells, merging it into HYMH to enhance integrated energy solutions in the Americas segment [94]. - Planned capital expenditures for 2025 are expected to range between $50 million and $60 million, with $38.9 million spent in the first nine months of 2025 [126][150]. - The Company anticipates a moderate operating loss in Q4 2025, primarily due to moderated production rates and consistent tariff costs with Q3 2025 levels [145]. - Operational improvement projects initiated in 2024 are expected to generate annualized income and cash benefits ranging between $30 million to $40 million by 2027 [143]. - The Company is committed to disciplined capital allocation, including continued debt reduction and strategic investments for long-term growth [151]. Risks and Challenges - The Company operates internationally and is subject to variability from foreign currency exchange rate movements, impacting revenues, operating profit, and net income [153]. - The Company faces risks from supply chain disruptions, including delays in delivery and increased costs due to inflation, affecting liquidity [155]. - There is a potential reduction in global demand for lift trucks and related aftermarket parts, which may impact overall sales [155]. - The Company is exposed to geopolitical risks, including changes in U.S. trade policy and tariffs, which could affect operations and costs [155]. - The effectiveness of global cost reduction programs and successful implementation of procurement initiatives are critical for maintaining profitability [155]. - The Company is focused on the successful commercialization of products related to the energy solutions program, which is a key growth area [155]. - Political and economic uncertainties in operating countries may impact business operations and strategic decisions [155]. - The Company must navigate challenges related to workforce management, including attracting and retaining employees [155]. - Exchange rate fluctuations and interest rate volatility are ongoing concerns that could affect financial performance [155]. - The Company is committed to protecting its information technology infrastructure against potential cyber threats and service interruptions [155].

Financial Performance - Net income for Q3 2025 was $53,502, a 18.5% increase from $45,153 in Q3 2024[18]. - Basic earnings per share for Q3 2025 was $1.55, compared to $1.31 in Q3 2024, reflecting an increase of 18.3%[16]. - Net income for the nine months ended September 30, 2025, was $144,133,000, an increase of 17.7% compared to $122,507,000 for the same period in 2024[23]. - The company reported a total of 34,335,297 shares issued and outstanding as of September 30, 2025, down from 34,459,832 shares at December 31, 2024[14]. - Comprehensive income for Q3 2025 was $77,169, down from $117,159 in Q3 2024[18]. Asset and Equity Growth - Total assets increased to $16,563,081 thousand as of September 30, 2025, compared to $16,200,037 thousand at December 31, 2024, reflecting a growth of 2.24%[14]. - Total shareholders' equity reached $1,912,892 thousand, compared to $1,774,326 thousand, marking an increase of 7.80%[14]. - Retained earnings increased to $837,826 thousand from $744,091 thousand, showing a growth of 12.59%[14]. - The total amount of unrealized losses for available-for-sale securities was $280,752,000, with 185 securities in a continuous unrealized loss position as of September 30, 2025[37]. Loan and Deposit Activity - Net loans receivable rose to $11,542,831 thousand, up from $11,199,135 thousand, indicating an increase of 3.06%[14]. - Total deposits grew to $14,015,935 thousand, a rise from $13,514,398 thousand, representing an increase of 3.70%[14]. - The total loans receivable reached $11.703 billion as of September 30, 2025, an increase from $11.355 billion as of December 31, 2024[42]. - The allowance for credit losses on loans was $159,707 thousand, slightly up from $155,521 thousand, indicating a 1.41% increase[14]. Income and Expense Analysis - Total interest income for Q3 2025 was $205,848, an increase of 5.1% from $195,841 in Q3 2024[16]. - Net interest income after provision for credit losses for Q3 2025 was $147,319, up 10% from $133,983 in Q3 2024[16]. - Total non-interest expense for Q3 2025 was $102,022, representing a 6.3% increase from $96,291 in Q3 2024[16]. - Non-interest income for Q3 2025 reached $20,730, a 14.8% increase compared to $18,063 in Q3 2024[16]. Credit Quality and Provisions - The provision for credit losses for Q3 2025 was $2,670, an increase from $1,692 in Q3 2024[16]. - The company reported a provision for credit losses of $10,604,000 for the nine months ended September 30, 2025, compared to $4,581,000 in 2024, indicating an increase in credit loss provisions[23]. - The allowance for credit losses at the end of September 30, 2025, was $159,707,000, reflecting a provision for credit losses of $1,384,000 for the three months ended[77]. - The company reported no current period gross charge-offs across all categories for the year 2025[56][57]. Market and Strategic Initiatives - The company is facing risks from economic conditions, including inflation and geopolitical developments, which may impact future performance[12]. - The company is focused on key growth initiatives and strategic priorities to enhance market position and operational efficiency[12]. - Future acquisitions or business combinations may impact the company's financial position and operational integration challenges[12]. - The company plans to continue expanding its market presence and product offerings, focusing on new technologies and strategic acquisitions to enhance growth[60]. Cash Flow and Investment Activities - Operating activities provided net cash of $232,516,000 for the nine months ended September 30, 2025, compared to $193,907,000 in 2024, reflecting a 19.9% increase[23]. - The net cash used by investing activities was $218,195,000 for the nine months ended September 30, 2025, a decrease from $304,621,000 in 2024[25]. - The company repurchased common stock amounting to $15,784,000 during the nine months ended September 30, 2025[26]. - The company accrued dividends on common stock at $0.48 per share, totaling $50,399,000 paid during the nine months ended September 30, 2025[26].

Financial Performance - Net sales for Q3 2025 were $353 million, down $48 million or 12% from the prior year quarter[6]. - Loss from continuing operations for Q3 2025 was $4 million, an improvement of $29 million from the prior year quarter[7]. - Adjusted EBITDA for Q3 2025 was $42 million, down $9 million from the prior year quarter, with full year 2025 expected to be between $135 million and $140 million[6][32]. - RYAM's overall EBITDA for the full year 2025 is expected to approximate $227 million to $230 million, subject to additional impacts from tariffs[38]. - Gross margin for the three months ended September 27, 2025, was $34 million, down from $44 million in the same period last year, indicating a decline of 23%[63]. - The net loss attributable to Rayonier Advanced Materials Inc. for the nine months ended September 27, 2025, was $399 million, compared to a net loss of $23 million for the same period in 2024[63]. - Basic and diluted loss per share from continuing operations for the three months ended September 27, 2025, was $0.07, compared to a loss of $5.48 for the same period in 2024[63]. - For the nine months ended September 27, 2025, the total income from continuing operations attributable to RYAM was $110 million, down from $133 million in the same period last year[73]. - The company reported an adjusted free cash flow of $(83) million for the nine months ended September 27, 2025, compared to $99 million in the same period last year[76]. - EBITDA attributable to RYAM for the three months ended September 27, 2025, was $43 million, down from $66 million in the previous quarter[72]. Debt and Cash Flow - Total debt stood at $794 million with a net secured debt of $729 million, resulting in a covenant net secured leverage ratio of 4.1 times[6]. - Long-term debt increased to $764 million as of September 27, 2025, compared to $706 million at the end of 2024, marking an increase of 8%[65]. - Total debt increased to $794 million as of September 27, 2025, compared to $730 million on December 31, 2024, reflecting a rise of 8.8%[78]. - Adjusted Net Debt rose to $760 million from $653 million, indicating a significant increase of 16.4%[78]. - Cash and cash equivalents decreased to $(77) million from $(125) million, showing an improvement of 38.4%[78]. - Cash provided by operating activities for the nine months ended September 27, 2025, was a negative $8 million, a significant decrease from $149 million in the same period last year[67]. Sales and Market Performance - Cellulose Specialties net sales decreased by $28 million or 12% year-over-year, driven by a 17% decrease in sales volumes[9]. - Sales prices in the Cellulose Specialties segment are anticipated to be mid single-digit percentage above the prior year average, while sales volumes are expected to decline approximately 10%[37]. - Average sales price for Cellulose Specialties was $1,873 per metric ton for the three months ended September 27, 2025, up from $1,753 in the same period last year, indicating an increase of 7%[70]. - The sales volume of Cellulose Commodities for the three months ended September 27, 2025, was 93,000 metric tons, a decrease from 95,000 metric tons in the same period last year, representing a decline of 2%[70]. - Paperboard sales volumes are expected to remain soft, with an overall EBITDA expected to approximate $13 million for the full year 2025[44]. Strategic Initiatives - The company targets approximately $30 million in annual cost savings by 2026, with potential additional savings of up to $20 million in 2027[33]. - Biomaterials projects are expected to contribute approximately $31 million of run-rate proportional EBITDA by the end of 2027[33]. - The company aims to achieve over $300 million in run-rate EBITDA by the end of 2027, supported by strategic initiatives and pricing actions[4][33]. - The Company secured green capital of €67 million in Q4 2024 to advance its biomaterials strategy[39]. - RYAM is evaluating investments in crude tall oil facilities in Georgia and France, and has purchased high-quality CTO plant equipment for the Jesup project[45]. - The Company is pursuing a potential bioethanol facility in Florida, despite earlier site plan application denial, and remains confident in the project's merits[45]. - RYAM's production is being shifted toward non-fluff commodities due to disruptions in the global fluff market caused by Chinese retaliatory tariffs[41]. Expenses and Charges - Interest expense for Q3 2025 increased by $5 million compared to the prior year quarter, primarily due to a rise in the average effective interest rate on debt[26]. - Interest expense for the nine months ended September 27, 2025, was $70 million, an increase from $61 million in the same period last year[73]. - Corporate costs for the full year 2025 are expected to approximate $70 million, primarily due to non-cash environmental reserve charges[49]. - The company incurred indefinite suspension charges of $1 million in the three months ended September 27, 2025[72]. - Asset impairment charges were recorded at $25 million for the nine months ended September 27, 2025, consistent with the previous year[80]. - Indefinite suspension charges amounted to $1 million for the three months ended September 27, 2025, compared to $7 million in the same period in 2024[80]. - The total income tax expense for the nine months ended September 27, 2025, was $323 million, compared to an income tax benefit of $6 million in the same period last year[73].

Financial Performance - Q3 2025 consolidated revenues were $979.1 million, a 4% decline year-over-year but a 2% increase sequentially [4]. - Operating profit decreased to $2.3 million, down 93% year-over-year, while net loss was $2.3 million compared to a net income of $17.2 million in Q3 2024 [4]. - Revenues for Q3 2025 were $979.1 million, a decrease of 3.9% from $1,016.1 million in Q3 2024 [57]. - Gross profit for Q3 2025 was $155.9 million, down 19.2% from $192.9 million in Q3 2024 [57]. - Net income attributable to stockholders for Q3 2025 was a loss of $2.3 million, compared to a profit of $17.2 million in Q3 2024 [57]. - Basic earnings per share for Q3 2025 were $(0.13), compared to $0.98 in Q3 2024 [57]. - Total revenues for the nine months ended September 30, 2025, were $2,846.1 million, down 12.2% from $3,240.7 million in the same period of 2024 [57]. - Cash flow before financing activities for Q3 2025 was $22.9 million, a decrease from $58.1 million in Q3 2024 [62]. - Net cash provided by operating activities for Q3 2025 was $37.1 million, down from $70.1 million in Q3 2024 [62]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $136.0 million, compared to $64.5 million in the same period of 2024 [62]. Revenue and Backlog - Lift Truck revenues were $929.3 million, reflecting a 4% decline year-over-year due to lower truck volumes across all product lines [5]. - The backlog at the end of Q3 2025 was $1.35 billion, down from $1.65 billion at the end of Q2 2025, as shipments outpaced new bookings [29]. - The company anticipates further backlog degradation in the near term due to ongoing weaker demand and reduced truck bookings [30]. - Q3 2025 unit bookings increased to $380 million, a 3% rise from Q3 2024 and a 15% increase from Q2 2025 [32]. - Unit backlog value decreased to $1.35 billion, down 41% from Q3 2024 and down 18% from Q2 2025 [32]. Operating Expenses and Profitability - Operating cash flow improved to $37 million, attributed to increased inventory efficiency [6]. - Tariff costs amounted to approximately $40 million in Q3 2025, impacting overall profitability [11]. - Operating expenses in Q4 2025 are projected to remain consistent with year-to-date levels, resulting in a modest year-over-year decrease [36]. - Q4 2025 is expected to result in a moderate operating loss due to moderated production rates, with tariff costs projected to remain consistent with Q3 2025 [37]. - The company aims to maintain a 7% operating profit margin over the business cycle, although near-term results are expected to fall below this target due to ongoing market uncertainty [39]. - The company is focusing on generating strong operating cash flow despite projected lower net income in 2025 [41]. Strategic Initiatives - The company expects a favorable financial impact of $2 million to $3 million in Q4 2025 from potential reductions in Chinese tariff levels [21]. - The company remains focused on liquidity management and optimizing working capital levels amid ongoing economic uncertainty [19]. - The company is committed to disciplined capital allocation, including continued debt reduction and strategic investments for long-term growth [43]. - The company is expanding modular and scalable models to support customer applications and enhance competitive positioning across product ranges [33]. - The company expects operational improvement projects to incur an additional $3 million in Q4 2025 and between $12 million to $25 million in 2026, with anticipated annualized income benefits of $30 million to $40 million by 2027 [35]. Regional Performance - Q3 2025 adjusted operating profit for the Americas was $22.1 million, down from $41.1 million in Q3 2024, reflecting a decrease of 46.3% [65]. - EMEA region reported an adjusted operating loss of $16.9 million in Q3 2025, worsening from a loss of $9.6 million in Q3 2024 [65]. - JAPIC adjusted operating loss was $4.2 million in Q3 2025, compared to a loss of $3.1 million in Q3 2024 [65]. - Lift Truck segment showed an adjusted operating profit of $1.0 million in Q3 2025, significantly down from $28.4 million in Q3 2024 [65]. - Bolzoni's adjusted operating profit remained stable at $2.1 million in Q3 2025, unchanged from Q3 2024 [65]. - Total adjusted operating profit for the company was $3.3 million in Q3 2025, a decline from $34.3 million in Q3 2024, representing a decrease of 90.4% [65]. Restructuring and Operational Efficiency - The company reported restructuring and impairment charges of $1.0 million for Q3 2025, compared to $1.2 million in Q3 2024 [64]. - Restructuring and impairment charges included $1.0 million in Q3 2025, compared to $1.2 million in Q2 2025 [65]. - The company is undergoing a strategic realignment, impacting its manufacturing footprint and operational efficiency [65]. - The company continues to focus on improving its operational performance amid challenging market conditions [65].

Financial Performance - Comparable store sales decreased by 1.4% and 3.0% during the three and nine months ended September 30, 2025, respectively, due to lower levels of traffic in stores [95]. - Net sales for the third quarter of 2025 decreased by $1.4 million, or 1.7%, compared to the third quarter of 2024, with comparable store sales down by 1.4% due to decreased traffic [108]. - For the nine months ended September 30, 2025, net sales decreased by $8.3 million, or 3.1%, compared to the same period in 2024, with comparable store sales down by 3.0% due to decreased store traffic [112]. - Net loss for the nine months ended September 30, 2025, was $1,050,000, compared to a net income of $2,949,000 for the same period in 2024, representing a significant decline [121]. Gross Margin and Profit - Gross margin rate decreased by 360 basis points to 62.9% during the third quarter of 2025 compared to 66.5% during the third quarter of 2024, primarily due to increased product costs and higher levels of discounting [96]. - Gross profit for the third quarter of 2025 decreased by $3.9 million, or 7.0%, with a gross margin rate of 62.9% compared to 66.5% in the same quarter of 2024, primarily due to increased product costs and higher delivery expenses [109]. - Gross profit for the nine months ended September 30, 2025, decreased by $9.7 million, or 5.5%, with a gross margin rate of 64.5% compared to 66.1% in the same period of 2024 [113]. Expenses and Cost Management - Selling, general and administrative expenses decreased by $1.7 million, or 3.1%, from $56.0 million in the third quarter of 2024 to $54.2 million in the third quarter of 2025 [98]. - Selling, general, and administrative expenses for the nine months ended September 30, 2025, decreased by $4.0 million, or 2.3%, compared to the same period in 2024, due to various cost reductions [115]. - The closure of the Spring Valley, WI distribution center is expected to yield an annualized benefit of approximately $1.0 million [100]. - The Company is evaluating strategic options to manage anticipated cost pressures due to U.S. trade policy changes, including elevated tariffs [91]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $11.3 million for the nine months ended September 30, 2025, down from $28.5 million in 2024, attributed to a decrease in net income [131]. - Capital expenditures were $7.9 million for the nine months ended September 30, 2025, a decrease from $11.8 million in 2024, primarily due to investments in store remodels and technology [128]. - Cash and cash equivalents totaled $24.1 million at September 30, 2025, an increase from $21.0 million at December 31, 2024 [134]. Stock and Financing - The Company plans to implement a reverse stock split at a ratio not less than 1-for-2,000 and not greater than 1-for-4,000, subject to stockholder approval [85]. - Approximately 1,307,000 shares of common stock are expected to be cashed out in the Reverse Stock Split based on a mid-point ratio of 1-for-3,000 [85]. - The company had no borrowings outstanding on its line of credit as of September 30, 2025, with $73.8 million available for borrowing [125]. - The Credit Agreement provides a $75.0 million revolving line of credit, with interest rates ranging from 1.25% to 1.75% based on the Rent Adjusted Leverage Ratio [123]. Tax and EBITDA - The effective tax rate for the nine months ended September 30, 2025, was 18.7%, down from 27.9% in 2024, primarily due to a decrease in taxable income [116]. - Adjusted EBITDA for the third quarter of 2025 was $2.0 million, or 2.5% of net sales, compared to $5.0 million, or 6.0% of net sales, in the third quarter of 2024 [120]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $11,543,000, which is 4.5% of sales, down from $19,194,000 or 7.2% of sales in 2024 [121]. Company Operations - The Company operated 140 stores in 31 states and the District of Columbia as of September 30, 2025, with an average store size of approximately 20,000 square feet [93]. - Standby letters of credit totaled $1.2 million as of September 30, 2025, related to workers' compensation and medical insurance policies [125].

Financial Performance - Total revenue for the three months ended September 30, 2025, was $22.6 million, a 31% increase from $17.2 million in the same period of 2024[141]. - Product revenue increased by $3.7 million (28%) for the three months and $12.6 million (35%) for the nine months ended September 30, 2025, compared to the same periods in 2024, driven by new customer additions and increased product utilization[142]. - Subscription revenue rose by $1.7 million (44%) for the three months and $4.8 million (43%) for the nine months ended September 30, 2025, primarily due to increased subscription adoption[143]. - Gross profit for the three months ended September 30, 2025, was $19.9 million, a 33% increase from $15.0 million in 2024, with a gross margin of 88%[146]. - Net loss for the three months ended September 30, 2025, was $13.5 million, a 29% increase from a net loss of $10.4 million in the same period of 2024[141]. Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $34.6 million, a 39% increase from $24.9 million in 2024, with significant increases in research and development (47%) and sales and marketing (48%) expenses[141]. - Research and development expenses are expected to increase as the company continues to improve its algorithm and expand indications beyond seizures[132]. - Sales and marketing expenses are projected to rise as the company increases its sales organization and market penetration in the U.S. and seeks international opportunities[134]. - General and administrative expenses are expected to grow as the company increases headcount and incurs additional costs associated with being a public company[136]. Cash Flow and Financing - Cash used in operating activities for the nine months ended September 30, 2025, was $30.0 million, compared to $25.1 million in 2024[155]. - Cash used in investing activities significantly increased to $144.2 million for the nine months ended September 30, 2025, from $1.1 million in 2024, primarily due to marketable securities purchases[159]. - As of September 30, 2025, the company had $168.5 million in cash and cash equivalents and marketable securities, along with $20.0 million in term loans[163]. - The company expects to continue incurring losses and significant cash expenditures as it scales operations and invests in research and development and marketing[162]. - The company entered into a VLSA with SVB and Horizon, providing a term loan commitment of $50.0 million, of which $20.0 million was drawn at closing[164]. - A Revolving Facility was established for a line of credit of up to $10.0 million, maturing on February 6, 2026[165]. - The company believes that expected cash generated from revenue transactions and existing cash will be sufficient to fund planned operating expenses for at least the next 12 months[166]. - Future capital needs will depend on factors such as market acceptance of products and costs associated with product development and sales growth[167]. Regulatory and Market Position - The company has received a CE Mark for the Ceribell System in Europe and plans to pursue additional regulatory clearances internationally[120]. - The Ceribell System is designed to improve the detection and management of seizures in acute care settings, addressing significant delays and economic burdens associated with conventional EEG systems[118]. - As of September 30, 2025, the Ceribell System has been adopted by over 600 active accounts and has been used to care for over 200,000 patients[118]. Accounting and Estimates - Management's estimates and judgments in financial statements are based on historical experience and known trends, which may differ from actual results[169]. - There have been no material changes to significant accounting policies during the nine months ended September 30, 2025[170]. - Recent accounting pronouncements applicable to financial statements are described in the Quarterly Report on Form 10-Q[171].