Financial Performance - Petco reported Q3 2025 net sales of $1.5 billion, a decrease of 3.1% year over year[4] - Comparable sales declined by 2.2% year over year, indicating a continued challenge in sales performance[4] - Operating income increased by $25.2 million to $29.2 million, reflecting improved profitability[4] - GAAP net income rose by $26.0 million to $9.3 million, marking a significant turnaround[4] - Adjusted EBITDA for Q3 2025 was $98.6 million, an increase of $17.3 million year over year[4] - The company tightened its full year 2025 net sales outlook to a decrease of 2.5% - 2.8%[4] - Full year 2025 adjusted EBITDA guidance was revised upward by $6 million, now projected between $395 million and $397 million[4] - For Q4 2025, net sales are expected to decline in low single digits year over year, with adjusted EBITDA projected between $93 million and $95 million[5] Operational Adjustments - Petco plans to close approximately 20 stores as part of its operational adjustments[4] Year-to-Date Performance - Net income for the 39 weeks ended November 1, 2025, was $11,641, a significant improvement compared to a net loss of $87,979 for the same period in 2024[17] - Adjusted EBITDA for the 39 weeks ended November 1, 2025, was $301,873, representing an increase of 25.6% from $240,403 in the prior year[21] - Net sales for the 39 weeks ended November 1, 2025, were $4,446,339, down from $4,564,332, a decline of 2.6%[21] Asset and Liability Management - Total current assets increased to $1,007,400, up from $973,619, reflecting a growth of 3.9%[14] - Cash and cash equivalents at the end of the period rose to $249,423, compared to $121,021 at the end of the same period last year, marking a 106.2% increase[17] - Total liabilities decreased to $4,047,528 from $4,080,800, indicating a reduction of 0.8%[14] - Total assets increased slightly to $5,205,124 from $5,194,430, reflecting a growth of 0.2%[14] Cash Flow Analysis - Cash flows from operating activities provided $160,528, a substantial increase from $81,680 in the previous year[17] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $67,758, compared to a decrease of $15,628 in the same period last year[17] - For the 13 weeks ended November 1, 2025, net cash provided by operating activities was $90,090,000, compared to $20,724,000 for the same period in 2024, representing a significant increase[25] - Free Cash Flow for the 13 weeks ended November 1, 2025, was $60,646,000, a recovery from a negative Free Cash Flow of $(10,288,000) in the same period of 2024[25] - For the 39 weeks ended November 1, 2025, net cash provided by operating activities was $160,528,000, up from $81,680,000 in 2024, indicating strong operational performance[25] - Free Cash Flow for the 39 weeks ended November 1, 2025, was $70,568,000, compared to $(9,361,000) in the prior year, showing a positive trend[25] - Cash paid for fixed assets decreased slightly from $(31,012,000) in 2024 to $(29,444,000) in 2025 for the 13-week period[25] - Cash paid for fixed assets for the 39 weeks ended November 1, 2025, was $(89,960,000), a slight decrease from $(91,041,000) in 2024[25] Profitability Metrics - Gross profit margin improved by approximately 75 basis points to 38.9% as a percentage of net sales[4] - The Adjusted EBITDA margin improved to 6.8% for the 39 weeks ended November 1, 2025, compared to 5.3% in the prior year[21]

Revenue and Growth - Third quarter revenue increased 5% year over year to $125 million[1] - Annual Recurring Revenue (ARR) grew 3% year over year to $497 million[1] - Revenue for the three months ended October 31, 2025, was $124.545 million, representing a 4.5% increase from $118.946 million in the same period of 2024[20] - Total paid customers increased to 15,398, up from 15,050 year over year[8] - Customers with ARR over $100 thousand grew 5% to 867 as of October 31, 2025[8] - Remaining performance obligations were $415 million, with an expected revenue recognition of approximately $287 million over the next 12 months[8] - For the fourth quarter of fiscal 2026, total revenue is expected to be between $122 million and $124 million[13] Profitability - Operating income was $8 million, with a non-GAAP operating income of $36 million[1] - Net income per diluted share attributable to common stockholders was $1.69, with a non-GAAP net income per diluted share of $0.33[5] - Net income attributable to PagerDuty, Inc. common stockholders for the three months ended October 31, 2025, was $159.555 million, compared to a net loss of $6.558 million in the same period of 2024[20] - Non-GAAP net income attributable to common stockholders for the three months ended October 31, 2025, was $31.217 million, compared to $23.721 million in the same period of 2024, a growth of 31.5%[49] - Non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders for the three months ended October 31, 2025, was $0.34, compared to $0.26 in the same period of 2024[49] Expenses and Liabilities - Operating expenses for the three months ended October 31, 2025, totaled $98.109 million, a decrease of 10.0% from $108.971 million in the prior year[20] - Research and development expenses for the three months ended October 31, 2025, were $29.418 million, down from $34.267 million in the prior year, a decrease of 14.0%[20] - Total liabilities decreased to $688.446 million as of October 31, 2025, from $779.221 million on January 31, 2025[22] Cash Flow and Assets - Cash and cash equivalents as of October 31, 2025, were $324.260 million, down from $346.460 million at the beginning of the year[22] - Net cash provided by operating activities for the three months ended October 31, 2025, was $24.803 million, compared to $22.073 million in the same period of 2024[24] - Free cash flow for the three months ended October 31, 2025, was $20.929 million, compared to $19.443 million in the same period of 2024, indicating an increase of 7.6%[52] - Free cash flow margin for the three months ended October 31, 2025, was 16.8%, compared to 16.3% in the same period of 2024[52] - Total assets increased to $1.027 billion as of October 31, 2025, compared to $927.266 million on January 31, 2025[22] Margins and Retention - Dollar-based net retention rate was 100% as of October 31, 2025, down from 107% a year earlier[8] - Non-GAAP gross margin for the three months ended October 31, 2025, was 86.7%, up from 86.0% in the same period of 2024[47] - Non-GAAP operating margin for the three months ended October 31, 2025, was 28.5%, up from 21.0% in the same period of 2024[49] - Operating cash flow margin for the three months ended October 31, 2025, was 19.9%, compared to 18.6% in the same period of 2024[52] Future Projections and Tax - Non-GAAP net income per diluted share for the full fiscal year 2026 is projected to be between $1.11 and $1.12[13] - PagerDuty's projected non-GAAP tax rate for fiscal 2026 is 22%, aimed at providing consistency across reporting periods[37] Non-GAAP Measures - PagerDuty emphasizes the importance of reviewing GAAP financial measures alongside non-GAAP measures for a comprehensive understanding of financial performance[44] - Non-GAAP operating income for the three months ended October 31, 2025, was $35.546 million, up from $24.991 million in the same period of 2024, reflecting a growth of 42.3%[49] - Non-GAAP gross profit for the three months ended October 31, 2025, was $107,993,000, compared to $102,339,000 for the same period in 2024, representing a 5.2% increase[47] - Non-GAAP operating expenses for the three months ended October 31, 2025, were $19,348,000 in research and development, down from $22,291,000 in 2024, a decrease of 8.7%[47] - Non-GAAP net income for the nine months ended October 31, 2025, was not explicitly stated but reflects adjustments for various non-operational items[41]

Revenue Growth - Net revenues for the third quarter of fiscal 2025 increased by $82.1 million or 4.6%, with comparable company growth of 4.0% driven by strong non-furniture and furniture sales[86] - For the first thirty-nine weeks of fiscal 2025, net revenues increased by $200.4 million or 3.8%, with company comp growth of 3.7%[95] - Pottery Barn, the largest brand, experienced comparable brand revenue growth of 1.3%, supported by large-ticket items and improved store inventory availability[87] - The Williams Sonoma brand saw a significant brand comp growth of 7.3%, driven by strength in kitchen products, particularly electrics and cookware[89] - The retail channel achieved a comp growth of 8.5%, while the e-commerce channel saw a comp growth of 1.9% in the third quarter of fiscal 2025[86] - Emerging brands, including Rejuvenation, Mark and Graham, and GreenRow, delivered double-digit brand comp growth on a combined basis[89] Financial Performance - Gross profit for the third quarter of fiscal 2025 was $867.7 million, a 6.1% increase from $817.6 million in the same quarter of fiscal 2024, with a gross margin of 46.1% compared to 45.4%[104] - For the first thirty-nine weeks of fiscal 2025, gross profit increased by $81.5 million, or 3.4%, totaling $2.5 billion, while gross margin decreased to 45.8% from 46.0%[105] - Selling, general and administrative (SG&A) expenses for the third quarter of fiscal 2025 were $548.6 million, a 7.0% increase from $512.5 million in the same quarter of fiscal 2024, with SG&A as a percentage of net revenues rising to 29.1%[108] - SG&A expenses for the first thirty-nine weeks of fiscal 2025 increased by $43.6 million, or 2.9%, totaling $1.56 billion, while SG&A as a percentage of net revenues decreased to 28.6% from 28.9%[109] - The effective tax rate for the first thirty-nine weeks of fiscal 2025 was 25.4%, up from 24.2% in the same period of fiscal 2024, primarily due to lower excess tax benefits from stock-based compensation[110] Cash Flow and Investments - The company ended the third quarter of fiscal 2025 with $884.7 million in cash and cash equivalents and generated operating cash flow of $718.0 million[90] - The company invested $178.5 million in capital expenditures and returned $792.3 million to stockholders through stock repurchases and dividends in the first thirty-nine weeks of fiscal 2025[90] - Net cash provided by operating activities for the first thirty-nine weeks of fiscal 2025 was $718.0 million, a decrease from $726.7 million in the same period of fiscal 2024[122] - Net cash used in investing activities for the first thirty-nine weeks of fiscal 2025 was $179.7 million, compared to $154.0 million in the same period of fiscal 2024, primarily for technology and supply chain enhancements[123] - Net cash used in financing activities for the first thirty-nine weeks of fiscal 2025 was $870.1 million, a decrease from $1.0 billion in the same period of fiscal 2024, mainly due to reduced stock repurchases[124] Economic and Market Conditions - The tariff rate has increased from 14% in May 2025 to 29% as of the report date, potentially impacting costs for imported materials and finished goods[92] - The company remains focused on returning to growth, enhancing customer service, and driving earnings despite challenges from the macroeconomic environment[92] - Inflation has been experienced due to supply chain disruptions, increased shipping and transportation costs, and rising labor costs, but the impact on financial statements has been immaterial to date[132] - The company acknowledges the potential future impact of inflation on its financial condition and results of operations[132] Foreign Currency Exposure - The majority of inventory purchases are made in U.S. dollars, minimizing foreign currency impact during Q3 fiscal 2025 and Q3 fiscal 2024[130] - Foreign operations in Canada, Australia, the UK, and parts of Asia and Europe expose the company to foreign currency exchange rate fluctuations, but the impact has been immaterial[131] - A hypothetical 10% change in foreign currency exchange rates would not materially affect the company's financial statements[131] Credit Facilities - As of November 2, 2025, the company held $884.7 million in cash and cash equivalents, with $64.2 million held by international subsidiaries[117] - The company amended its credit facility in June 2025, increasing the unsecured revolving line of credit to $600 million, with the option to increase it by up to $250 million[118]

Financial Performance - The Company reported net sales of $394.6 million for Q2 fiscal 2026, a decrease of 12.8% compared to $452.5 million in Q2 fiscal 2025[99] - Gross profit for Q2 fiscal 2026 was $59.9 million, representing a gross profit margin of 15.2%, down from 18.9% in the same period last year[102] - Adjusted EBITDA for the second quarter of fiscal 2026 was $39.6 million, or 10.0% of net sales, down from $60.2 million, or 13.3% of net sales, in the same quarter of the prior fiscal year[117] - Net income for the three months ended October 31, 2025, was $6.1 million, compared to $27.7 million for the same period in the prior year[119] - Adjusted EPS per diluted share for the three months ended October 31, 2025, was $0.76, compared to $2.08 for the same period in the prior year[119] - Adjusted EBITDA for the first six months of fiscal 2026 was $81.9 million, or 10.3% of net sales, down from $123.1 million, or 13.5% of net sales, in the same period of the prior fiscal year[117] Expenses and Charges - The Company incurred $1.5 million in pre-tax restructuring charges during Q2 fiscal 2026, related to workforce reductions and facility closures[97] - General and administrative expenses increased by 20.4% in Q2 fiscal 2026, primarily due to expenses associated with the pending Merger and digital transformation initiatives[104] - The effective income tax rates for the three- and six-month periods ended October 31, 2025, were 31.5% and 27.6%, compared to 21.9% and 23.5% in the prior year periods[105] Market Conditions - Builder sales decreased by 19.7% in Q2 fiscal 2026 compared to the same period last year, reflecting challenges in the new construction market[100] - Remodeling sales decreased by 7.0% in Q2 fiscal 2026, driven by lower in-store traffic and a shift towards more affordable products[99] - The unemployment rate increased to 4.4% as of September 2025, impacting consumer sentiment and spending[101] - The company expects a softer repair and remodel market and a decline in larger ticket remodel purchases for the remainder of fiscal 2026[120] Cash Flow and Debt - Cash and cash equivalents totaled $52.1 million at October 31, 2025, representing a $3.9 million increase from April 30, 2025[125] - Total long-term debt (including current maturities) was $370.8 million as of October 31, 2025[125] - Cash provided by operations in the first six months of fiscal 2026 was $44.3 million, down from $52.7 million in the same period of the prior year[125] - Cash flow from operations and accumulated cash are expected to be sufficient to support working capital requirements and fund capital expenditures for the remainder of fiscal 2026[133] - Cash flow from operations is expected to be sufficient to support working capital requirements and service existing debt obligations for the remainder of fiscal 2026[133] Strategic Initiatives - The Company entered into a Merger Agreement with MasterBrand on August 5, 2025, which is expected to affect its operational focus[91] - The company will continue to invest in digital transformation and automation during fiscal 2026[121] - The company will not be providing or updating previously issued financial guidance due to the proposed merger[122] - The company has authorized an additional stock repurchase program of up to $125 million, although it does not currently expect to repurchase additional shares due to the terms of the merger agreement[132] Tariff Impact - The Company estimates that the unmitigated tariff impact represents approximately 4-4.5% of annualized net sales, with variations by product category[92]

Exhibit 99.1 Zscaler Reports First Quarter Fiscal 2026 Financial Results First Quarter Highlights SAN JOSE, California - November 25, 2025 - Zscaler, Inc. (Nasdaq: ZS), the leader in cloud security, today announced financial results for its first quarter of fiscal year 2026, ended October 31, 2025. "Our outstanding Q1 results demonstrate the strong demand we are experiencing for our Zero Trust and AI Security platform. With over $3.2B in Annual Recurring Revenue, growing over 25% year-over-year, and Rule-of ...

Financial Performance - Revenues decreased by $42.7 million, or 3.8%, to $1,080.4 million for the year ended September 30, 2025, compared to $1,123.1 million for the year ended September 30, 2024[228]. - Gross profit decreased by $58.4 million to $676.8 million, with gross profit as a percentage of revenue at 62.6%, down from 65.5% in the prior year[230]. - Operating income increased by $75.3 million to $242.1 million from $166.8 million[230]. - Net income increased by $17.1 million to $95.4 million from $78.3 million[230]. Expenses - Research and development expenses decreased by $41.5 million, or 52.7%, to $37.3 million due to the discontinuation of the patch pump program[233]. - Selling and administrative expenses decreased by $33.1 million, or 9.1%, to $332.0 million, primarily driven by lower costs with BD and reduced compensation expenses[232]. - Cost of products sold increased by $15.7 million, or 4.0%, to $403.6 million, with cost of products sold as a percentage of revenues at 37.4% compared to 34.5% in the prior year[229]. - Other operating expenses decreased to $65.4 million from $124.5 million, with significant reductions in costs related to the separation and the patch pump program[234]. Debt and Interest - Interest expense, net decreased to $107.3 million from $112.3 million, primarily due to lower debt levels and interest rates[235]. - As of September 30, 2025, total principal debt issued amounted to $1,416.8 million, with long-term debt standing at $1,388.7 million after accounting for current debt obligations and debt issuance costs[244]. - The company has outstanding $200.0 million of senior secured notes with a 6.75% interest rate due in February 2030, and $500.0 million of 5.00% senior secured notes due in February 2030[242][244]. - The weighted average cost of total debt as of September 30, 2025, was 6.4%, with short-term debt representing 0.7% of total debt[245]. - The company paid an aggregate principal amount of approximately $184.6 million on the Term Loan during the year ended September 30, 2025[246]. - The company is in compliance with all financial covenants related to its credit agreements and senior secured notes as of September 30, 2025[245]. Cash Flow - Cash and equivalents and restricted cash decreased to $228.6 million as of September 30, 2025, from $274.2 million as of September 30, 2024, reflecting a $45.6 million decrease[252][253]. - Net cash provided by operating activities was $191.7 million, primarily driven by a net income of $95.4 million and non-cash adjustments totaling $120.0 million[253]. - The company entered into a trade receivables sale agreement, resulting in the sale of $63.2 million of trade receivables during fiscal year 2025[250][251]. Taxation - The income tax provision increased to $40.9 million for the year ended September 30, 2025, compared to $(34.1) million for the year ended September 30, 2024, primarily due to the absence of prior tax benefits and higher overall earnings in 2025[238]. - The company has established a reserve for uncertain tax positions unless they are more likely than not to be sustained upon examination[264]. - The company’s policy includes recognizing interest and penalties related to income taxes as part of income tax expense[264]. Risks and Challenges - The company is exposed to risks from changes in foreign currency exchange rates, which could adversely affect its financial condition and cash flows[269]. - As of September 30, 2025, a 100 basis points change in interest rates would impact interest expense on the Term Loan by $7.1 million annually[273]. - The company anticipates potential impacts from new tariffs instituted by the U.S. government on raw materials and products, which could increase operating costs[270]. - The company is subject to risks related to the inability to replace services currently provided by BD on similar terms, which could affect operations[266]. - The company faces competitive pressures from new drug therapies for diabetes treatment and new product introductions by competitors[266]. - The company is undergoing a brand transition, which includes regulatory challenges and potential customer confusion[270]. Strategic Initiatives - The company has entered into foreign currency forward exchange contracts to manage currency exposures, partially offsetting gains and losses[271]. - The company is evaluating strategic collaborative partnerships and acquisition opportunities to accelerate growth and access innovative technologies[270].

Financial Position - As of October 26, 2025, foreign subsidiaries held $123.3 million in cash and cash equivalents, down from $139.1 million at January 26, 2025[214]. - As of October 26, 2025, the company had no amounts outstanding under the Term Loans and $451.6 million available undrawn borrowing capacity[220]. - As of October 26, 2025, the company was in compliance with the financial covenants in its Credit Agreement[222]. - The remaining authorization under the stock repurchase program was $209.4 million, with no shares repurchased in the first nine months of fiscal years 2026 and 2025[238]. Debt and Financing - The company has a total available borrowing capacity of $455.0 million under the Revolving Credit Facility, which matures on January 12, 2028[218][219]. - The company issued $300.0 million and $19.5 million in aggregate principal amount of Convertible Senior Notes due 2027, bearing interest at 1.625% per year[225]. - The company recognized an induced conversion expense of $17.6 million related to the exchange of approximately $219.0 million aggregate principal amount of the 2027 Notes[227]. - On October 26, 2023, the company issued $250.0 million in aggregate principal amount of Convertible Senior Notes due 2028, bearing interest at 4.00% per year[229]. - The company exchanged approximately $188.1 million in aggregate principal amount of 2028 Notes for 10,378,431 shares of common stock[230]. - The company terminated the Convertible Note Hedges and the Warrants corresponding to the number of 2027 Notes exchanged, receiving approximately $24.5 million[228]. - The Company issued $402.5 million in aggregate principal amount of Convertible Senior Notes due 2030, which do not bear any interest and will mature on October 15, 2030[234]. Cash Flow and Expenditures - Net cash provided by operating activities increased to $119.7 million for the first nine months of fiscal year 2026, compared to $24.5 million for the same period in fiscal year 2025, reflecting a 17.8% increase in net sales[241][243]. - Capital expenditures for the first nine months of fiscal year 2026 were $7.4 million, an increase from $5.2 million in the same period of fiscal year 2025[244]. - The Company made prepayments of $181.2 million on Term Loans in the first nine months of fiscal year 2026, with no such prepayments made in the same period of fiscal year 2025[249]. - Net cash used in financing activities was $(94.1) million for the first nine months of fiscal year 2026, compared to $(12.1) million for the same period in fiscal year 2025[241]. - The Company sold investments for proceeds of $1.9 million in the first nine months of fiscal year 2026, down from $2.7 million in the same period of fiscal year 2025[245]. - The Company paid $10.6 million for deferred financing costs in the first nine months of fiscal year 2026, compared to $0.8 million in the same period of fiscal year 2025[250]. - The Company expects future non-operating uses of cash to be for capital expenditures and debt repayment, funded through cash flows from operating activities[216]. - The Company plans to finance capital expenditures and R&D investments through cash generated from operating activities and existing cash balances[235]. Impairment Charges - The Company recorded $42.0 million in pre-tax non-cash goodwill impairment charges for the IoT Connectivity Services reporting unit during the first nine months of fiscal year 2026[253].

Exhibit 99.1 NetApp Reports Second Quarter of Fiscal Year 2026 Results Net revenues of $1.71 billion for the second quarter, an increase of 3% year-over-year; Second quarter GAAP net income per share 1 of $1.51 and record non-GAAP net income per share 1 of $2.05 News Summary (In millions, except earnings per share and percentages) GAAP Results | | | Q2'FY26 | | Q2'FY25 | % | Change | | --- | --- | --- | --- | --- | --- | --- | | Net revenues | $ | 1,705 | $ | 1,658 | | 3% | | Hybrid Cloud segment revenue | ...

43% growth in contracted power sets the stage for AI expansion EXHIBIT 99.1 CleanSpark Reports Transformative FY 2025 Results $766.3 million revenue, 102% year over year increase Recent $1.15 billion 0% transaction provides capital for accretive infrastructure opportunities LAS VEGAS, November 25, 2025 -- CleanSpark, Inc. (Nasdaq: CLSK) (the "Company"), America's Bitcoin Miner®, today reported financial results for the fiscal year ended September 30, 2025. "Fiscal 2025 was the year CleanSpark achieved opera ...

Energy Storage Market Overview - As of September 30, 2025, Fluence had 6.8 GW of energy storage assets deployed and 9.1 GW of contracted backlog across 33 markets in 25 countries, with a gross global pipeline of 128.8 GW[23]. - The global utility-scale energy storage market is projected to add approximately 3,201 GWh between 2024 and 2035, excluding China[25]. - The energy storage market is driven by factors such as the global transition to renewable energy, declining lithium-ion battery prices, and increased electricity demand, particularly from data centers and AI[24][28]. - Fluence's energy storage solutions are designed for various applications, including frequency regulation, renewable integration, and capacity peak power[26][33]. - The company has a contracted backlog of 12.1 GW related to renewable and energy storage assets using Fluence digital offerings[23]. Company Operations and Strategy - Fluence's growth strategy focuses on leveraging global scale and product development to transform energy solutions, targeting new customers including independent power producers and utilities[37][38]. - The company aims to expand its services with additional value-add offerings and standardized products optimized for different sales channels[39]. - The company initiated domestic production of Fluence-designed Battery Packs in September 2024, incorporating battery cells manufactured in Tennessee, which may allow capturing certain incentives under the IRA[31]. - The company has established a contract manufacturing relationship in Salt Lake City, Utah, and added a second contract manufacturer in Arizona to support expanded operations[52]. - The company aims to localize critical supply chains and reduce carbon intensity, aligning procurement strategies with federal initiatives under the IRA and OBBBA[57]. Financial Performance and Customer Base - In fiscal year 2025, the company's two largest customers accounted for approximately 41% of total revenues, with 24% of revenue coming from related parties, primarily AES and its affiliates[40]. - As of September 30, 2025, the company had a backlog of $5.3 billion in remaining performance obligations, with 13% of this backlog related to AES[40]. - The gross global pipeline reached 128.8 GW, including 65.1 GW for energy storage solutions, with the largest portion (25%) from U.S. customers at 16.1 GW[40]. - The company has experienced fluctuations in order intake and operating metrics, with variability driven by customer negotiations and trade policy uncertainty[114]. - For the fiscal year ended September 30, 2025, the two largest customers accounted for approximately 41% of the annual revenue, with AES and its affiliates contributing about 24%[119]. Regulatory Environment and Government Incentives - The U.S. policies, including the IRA and OBBBA, are expected to enhance the company's competitive position in the U.S. market by providing financial support and incentives for energy storage solutions[69]. - The IRA includes a new "technology neutral" investment tax credit (ITC) and production tax credit (PTC) that support energy storage projects, with certain tax credits beginning to phase down for projects starting construction in 2033[76]. - The OBBBA, signed into law on July 4, 2025, modifies provisions of the IRA, ensuring long-term availability of the ITC for energy storage projects and establishing stricter domestic content requirements[76]. - The evolving regulatory landscape, including potential changes in government incentives and tariffs, poses risks and opportunities that may impact the company's future operations and financial condition[71]. - The company’s business and customer demand for energy storage solutions are significantly influenced by government incentives and regulations related to renewable energy, which can impact competitiveness and growth[100]. Competitive Landscape - The energy storage sector is highly competitive, with significant pressure from established players and new entrants, particularly those benefiting from vertically integrated supply chains in China[68]. - The company differentiates itself from competitors like Tesla and CATL by offering customized products and services, emphasizing low total cost of ownership and long-term reliability[69]. - Competition in the energy storage market is intensifying, with competitors having greater resources, which may hinder the company's ability to attract and retain customers[121]. - The company has entered into an agreement with AES Grid Stability that may impact future sales if AES decides to explore different energy storage suppliers[120]. Supply Chain and Manufacturing Challenges - The company relies on a limited number of third-party contract manufacturers, with three key manufacturers currently in use, which poses risks of delays and disruptions in manufacturing operations[134]. - The contract manufacturer in Arizona faced delays and inefficiencies in scaling production due to labor availability and long training lead times[136]. - Supplier concentration poses risks to the company's ability to deliver energy storage solutions, as reliance on a limited number of suppliers may lead to inventory shortages and increased costs[142]. - The company faces challenges related to international supply chain risks and logistics disruptions, particularly due to U.S. tariff and trade policy uncertainties impacting contracting activities[147]. - Manufacturing delays or disruptions could impact the company's ability to meet customer requirements and affect its financial condition[134]. Risks and Uncertainties - The company is subject to ongoing investigations regarding tariffs on imports, including a preliminary countervailing tariff of 11.58% on Chinese graphite active anode material[81]. - The company faces potential negative impacts on reputation and market competitiveness if it cannot provide energy storage solutions that qualify for the ITC on the anticipated timeline[104]. - The company is exposed to risks from environmental and social compliance issues within its supply chain, particularly concerning suppliers operating in regions with strict labor laws[150]. - The complexity of energy storage solutions may lead to undetected defects, affecting market adoption and customer relationships[157]. - The company has experienced legal claims related to product liability, which could impact financial results and reputation[162]. Future Outlook and Growth Potential - The company anticipates rising demand for clean electric power solutions and energy storage products, driven by regulatory incentives and market trends[187]. - Future growth is dependent on the adoption of digital software applications and regulatory regimes that promote clean energy[187]. - The company expects operating expenses to continue increasing over the next several years due to hiring additional personnel and expanding operations[191]. - The company may need to raise additional capital to support operations and growth, which could lead to dilution for existing shareholders[200]. - The growth and profitability of the company depend on the continued decline in battery energy storage costs, which have seen fluctuations in recent years[204].