Revenue Generation - Sephience (sepiapterin) recognized $19.6 million in net sales during the quarter ended September 30, 2025[200]. - Translarna (ataluren) generated $50.7 million in net sales for the quarter ended September 30, 2025[210]. - Emflaza (deflazacort) achieved $35.2 million in net sales during the quarter ended September 30, 2025[211]. - For the three months ended September 30, 2025, total net product revenue was $130.956 million, a decrease from $135.421 million in the same period of 2024, representing a decline of approximately 3.4%[242]. - For the nine months ended September 30, 2025, total net product revenue was $402.711 million, down from $446.245 million in 2024, reflecting a decrease of about 9.7%[242]. - Net product revenue for the three months ended September 30, 2025, was $131.0 million, a decrease of $4.5 million, or 3%, from $135.4 million for the same period in 2024[271]. - Net product revenue for the nine months ended September 30, 2025, was $402.7 million, a decrease of $43.5 million, or 10%, from $446.2 million for the same period in 2024[286]. Milestone Payments and Agreements - The company paid $225.1 million in upfront consideration to former Censa securityholders as part of the Rights Satisfaction Agreement[205]. - Additional milestone payments of up to $500.0 million are contingent upon achieving specified net sales thresholds[204]. - Sephience (sepiapterin) was granted FDA approval for the treatment of PKU, triggering a $32.5 million milestone payment to former Censa securityholders[236]. - The Novartis Agreement includes an upfront payment of $1.0 billion and potential additional payments of up to $1.9 billion in milestones, along with a 40% share of U.S. profits and losses[310]. - As of September 30, 2025, the remaining potential sales milestones from the SMA License Agreement with Roche are $150.0 million[245]. Research and Development - The company has a diversified therapeutic portfolio pipeline focused on rare diseases related to neurology and metabolism[199]. - Research and development expenses for the three months ended September 30, 2025, totaled $100.158 million, a decrease from $161.412 million in 2024, indicating a reduction of about 38%[255]. - For the nine months ended September 30, 2025, research and development expenses were $322.121 million, down from $409.710 million in 2024, reflecting a decrease of approximately 21.4%[255]. - The Sephience program incurred $27.618 million in research and development expenses for the three months ended September 30, 2025, compared to $23.386 million in 2024, an increase of about 18.5%[255]. - The company expects fluctuations in research and development expenses based on ongoing activities and clinical trial outcomes[252]. Financial Performance - As of September 30, 2025, the company reported a net income of $817.6 million and an accumulated deficit of $2,829.3 million[230]. - Collaboration and license revenue was $9.3 million for the three months ended September 30, 2025, an increase of $9.3 million, or 100%, from $0.0 million for the same period in 2024[273]. - Royalty revenue related to Evrysdi for the three months ended September 30, 2025, was $70.8 million, compared to $61.4 million in 2024, marking an increase of approximately 15.7%[247]. - The company recognized $1.0 billion in license revenues related to Novartis for the nine months ended September 30, 2025, with no remaining deferred revenue as of that date[249]. - Selling, general and administrative expense increased to $84.0 million for the three months ended September 30, 2025, an increase of $10.6 million, or 14%, from $73.5 million for the same period in 2024[278]. - Net interest expense decreased to $32.6 million for the three months ended September 30, 2025, a decrease of $9.0 million, or 22%, from $41.6 million for the same period in 2024[282]. - Income tax benefit was $39.0 million for the three months ended September 30, 2025, a change of $47.6 million, or over 100%, compared to an income tax expense of $8.7 million for the same period in 2024[284]. Future Outlook and Challenges - The company anticipates significant expenses related to commercialization efforts and ongoing clinical trials, impacting future capital requirements[231]. - The company expects to incur significant expenses and operating losses for at least the next fiscal year, despite generating net income in the recent quarters[300]. - The company expects cash flows from product sales, along with existing cash and marketable securities, to be sufficient to fund operating expenses for at least the next twelve months[317]. - Future capital requirements will depend on various factors, including commercialization strategy execution, clinical trials, and maintaining marketing authorizations[318]. - The company may need to obtain substantial additional funding to sustain operations and may finance cash needs through equity offerings, debt financings, and collaborations[323]. - If unable to raise additional funds, the company may have to delay or reduce product development and commercialization efforts[324]. Regulatory and Approval Updates - Upstaza (eladocagene exuparvovec) received accelerated approval from the FDA for the treatment of AADC deficiency in November 2024[216]. - Sephience was approved by the FDA for treating PKU in patients aged one month and above on July 28, 2025[200]. - The FDA issued a complete response letter for vatiquinone, stating that additional studies are needed to support NDA resubmission[222]. - The company submitted a New Drug Application (NDA) for vatiquinone to the FDA in December 2024, but received a complete response letter in August 2025 indicating that additional studies are needed[316]. - The company plans to meet with the FDA in the fourth quarter of 2025 to discuss the vatiquinone development program and the votoplam Phase 3 clinical trial design[222].

Financial Performance - For the three months ended September 30, 2025, earnings per share (EPS) was $1.37, and return on assets (ROA) was 1.44%, compared to $1.08 and 1.22% for the same period in 2024 [178]. - Net income for the three months ended September 30, 2025, was $76.4 million, an increase from $64.4 million for the same period in 2024 [200]. - Net interest income for the three months ended September 30, 2025, increased by $6.5 million to $184.023 million compared to the same period in 2024 [204]. - Noninterest income for the three months ended September 30, 2025, was $86.5 million, a decrease of $3.7 million from $90.2 million in the same period in 2024 [212]. - Noninterest expense for the nine months ended September 30, 2025, was $474.2 million, an increase of $5.6 million from $468.6 million for the same period in 2024 [213]. Asset and Liability Management - As of September 30, 2025, WSFS Financial Corporation had total assets of $20.8 billion and assets under management (AUM) and assets under administration (AUA) of $93.4 billion [173]. - Total liabilities decreased by $137.3 million to $18.1 billion at September 30, 2025, compared to December 31, 2024 [179]. - The company had a readily available, secured borrowing capacity of $5.6 billion from the FHLB and $2.3 billion through the Federal Reserve Discount Window as of September 30, 2025 [190]. - Interest-earning assets exceeded interest-bearing liabilities that mature or reprice within one year by $1.2 billion as of September 30, 2025 [197]. Capital and Equity - Stockholders' equity increased by $163.5 million to $2.8 billion at September 30, 2025, primarily due to $214.7 million of earnings [179]. - WSFS Financial Corporation maintained a total common equity Tier 1 capital ratio of 13.76% and total risk-based capital of 15.00% as of September 30, 2025, well above regulatory requirements [183]. - Tangible common equity increased to $1,779,596 thousand as of September 30, 2025, from $1,601,592 thousand at December 31, 2024 [218]. - Book value per share of common stock was $49.67 at September 30, 2025, an increase of $5.52 from $44.15 at December 31, 2024 [181]. Credit Quality - The provision for credit losses decreased by $11.9 million in the current quarter, reflecting favorable asset quality [202]. - Total nonperforming assets decreased by $54.8 million from December 31, 2024, to September 30, 2025, with a ratio of nonperforming assets to total assets decreasing from 0.61% to 0.35% [194]. - The ratio of allowance for credit losses to total loans and leases was 1.41% as of September 30, 2025, compared to 1.48% at December 31, 2024 [194]. - The total allowance for credit losses decreased to $185.5 million at September 30, 2025, from $195.3 million at December 31, 2024, primarily due to the resolution of problem loans and the Upstart loan sale [209]. Regulatory Environment - The One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025, introduces immediate expensing of qualifying R&D expenditures but is not expected to materially impact the company [222]. - The GENIUS Act, signed into law on July 18, 2025, establishes a federal licensing framework for payment stablecoins, potentially increasing competition for banks [223]. - The Community Reinvestment Act (CRA) framework was revised, with the bank receiving a "Satisfactory" rating in its most recent evaluation [224]. - Recent regulatory developments include guidance to eliminate mandatory examination activities not required by statute, enhancing flexibility for community banks [228].

Home Sales Performance - Home sales revenues decreased by 39.2% to $396.6 million from $651.9 million in Q3 2024[109] - Homes closed decreased by 39.4% to 1,065 homes from 1,757 homes in Q3 2024[109] - Home sales revenues for the three months ended September 30, 2025 were $396.6 million, a decrease of $255.2 million, or 39.2%, from $651.9 million for the same period in 2024[113] - The number of homes closed decreased by 39.4% during the three months ended September 30, 2025 compared to the same period in 2024, contributing to the decline in revenues[113] - Home sales revenues for the nine months ended September 30, 2025 were $1.2 billion, a decrease of $413.7 million, or 25.1%, from $1.6 billion for the same period in 2024[124] - The number of homes closed decreased by 24.7% during the nine months ended September 30, 2025, contributing to the decline in revenues[124] Pricing and Margins - Average sales price per home closed increased by 0.4% to $372,424 from $371,004 in Q3 2024[109] - The average sales price per home closed increased by $1,420, or 0.4%, to $372,424 for the three months ended September 30, 2025[113] - The average sales price per home closed was $363,929, a decrease of $2,078, or 0.6%, from $366,007 for the nine months ended September 30, 2024[124] - Gross margin as a percentage of home sales revenues decreased to 21.5% from 25.1% in Q3 2024[109] - Gross margin for the three months ended September 30, 2025 was $85.1 million, a decrease of $78.4 million, or 47.9%, from $163.5 million for the same period in 2024[115] - Gross margin for the nine months ended September 30, 2025 was $269.4 million, a decrease of $136.3 million, or 33.6%, from $405.8 million for the same period in 2024[127] Income and Expenses - Net income decreased by 71.7% to $19.7 million from $69.6 million in Q3 2024[109] - Operating income for the three months ended September 30, 2025 was $21.5 million, a decrease of $58.8 million, or 73.2%, from $80.3 million for the same period in 2024[120] - Net income for the three months ended September 30, 2025 was $19.7 million, a decrease of $49.9 million, or 71.7%, from $69.6 million for the same period in 2024[122] - Net income for the nine months ended September 30, 2025 was $55.2 million, a decrease of $90.0 million, or 62.0%, from $145.2 million for the same period in 2024[134] - Selling expenses for the three months ended September 30, 2025 were $35.7 million, a decrease of $19.5 million, or 35.4%, from $55.2 million for the same period in 2024[116] - General and administrative expenses for the three months ended September 30, 2025 remained consistent at $28.0 million compared to the same period in 2024[117] Debt and Liquidity - Total debt as of September 30, 2025, was $1,751,427,000, resulting in a debt to capital ratio of 45.7%[145] - The net debt to capital ratio as of September 30, 2025, was 44.8%, up from 41.2% at the end of 2024[145] - The company had $367.9 million available to borrow under the Credit Agreement, providing ample liquidity for operations and growth initiatives[165] - The Credit Agreement includes a $1.1825 billion revolving credit facility, maturing in April 2029 for 82.2% of the commitments[169] - As of September 30, 2025, total borrowings under the Credit Agreement and senior notes amounted to approximately $1.7 billion[171] - The company had $62.0 million in cash and cash equivalents as of September 30, 2025[163] Operational Highlights - The company owned and controlled 62,564 lots as of September 30, 2025, down from 70,899 lots at December 31, 2024[108] - The average community count increased to 142.0 from 133.3 in Q3 2024[110] - The company completed 3,384 home closings in the nine months ended September 30, 2025[156] - The company had 2,801 completed homes and 895 homes in progress as of September 30, 2025[159] - The company is focused on mitigating risks associated with raw material and labor costs through fixed-price contracts[160] Market Conditions and Risks - The U.S. government shutdown in October 2025 caused delays in loan processing for government-backed mortgage programs, potentially impacting future home closings[102] - Inflation poses risks to the company, particularly from higher land, financing, labor, material, and construction costs, which could affect mortgage affordability[190] - The net orders for the nine months ended September 30, 2025, decreased to 4,098 from 4,993 in 2024, with a cancellation rate of 28.1%[151] - The backlog of homes increased by 19.9% from September 30, 2024, with an ending backlog value of $498,713,000[149] Cash Flow Activities - Net cash used in operating activities was $226.7 million for the nine months ended September 30, 2025, primarily driven by a cash outflow of $347.3 million in real estate inventory[184] - Net cash provided by investing activities was $14.3 million during the nine months ended September 30, 2025, mainly due to $10.2 million in proceeds from the sale of property and equipment[186] - Net cash provided by financing activities was $221.2 million during the nine months ended September 30, 2025, primarily driven by $594.6 million of borrowings under the Credit Agreement[187]

Financial Performance - Revenues increased 29.7% to $986.8 million in Q3 2025, compared to $761.0 million in Q3 2024[9] - Net income rose 36.4% to $57.0 million, with a net income margin of 5.8% in Q3 2025[12] - EBITDA increased 36.9% to $89.0 million, with an EBITDA margin of 9.0% in Q3 2025[14] - Everus reported operating revenues of $986.8 million for Q3 2025, a 29.7% increase from $761.0 million in Q3 2024[51] - Gross profit for Q3 2025 was $124.2 million, compared to $89.9 million in Q3 2024, reflecting a significant increase in profitability[51] - Basic earnings per share for Q3 2025 was $1.12, compared to $0.82 in Q3 2024, indicating strong earnings growth[51] - Operating income for Q3 2025 was $72.4 million, a 34.7% increase from $53.7 million in Q3 2024, highlighting improved operational efficiency[51] - Net income for the nine months ended September 30, 2025, was $146.5 million, up 34.4% from $109.0 million in the same period of 2024[55] - Net income for the twelve months ended September 30, 2025, was $180.9 million, an increase from $143.4 million for the twelve months ended December 31, 2024, representing a growth of 26%[72] - EBITDA for the twelve months ended September 30, 2025, reached $293.3 million, compared to $232.2 million for the twelve months ended December 31, 2024, reflecting a 26% increase[72] Segment Performance - The E&M segment saw revenues grow 42.9% to $767.3 million, driven by strong demand in the data center submarket[16] - The E&M segment generated revenues of $767.3 million in Q3 2025, up 42.9% from $536.9 million in Q3 2024, while the T&D segment saw a slight decline of 2.2% to $223.4 million[57] - The E&M segment contributed $66.9 million to EBITDA for the three months ended September 30, 2025, a significant increase of 64.0% from $40.8 million in the prior year[67] Guidance and Future Outlook - The company raised its 2025 revenue guidance to a range of $3.55 billion to $3.65 billion, up from previous estimates of $3.3 billion to $3.4 billion[39] - Everus has revised its full-year 2025 EBITDA guidance to a range of $290.0 million to $300.0 million, up from the previous guidance of $240.0 million to $255.0 million[69] - Everus plans to discuss its future performance and financial guidance during the Q3 earnings call scheduled for November 5, 2025[43] Cash Flow and Capital Expenditures - Operating cash flows for the nine months ended September 30, 2025, were $108.6 million, up from $82.7 million in the same period of 2024[32] - Free cash flow increased to $74.8 million for the nine months ended September 30, 2025, compared to $57.8 million in the same period of 2024[34] - Capital expenditures for 2025 are expected to be in the range of $65 million to $70 million[36] - Capital expenditures for the nine months ended September 30, 2025, were $42.1 million, compared to $34.5 million in 2024, indicating a 22% increase in investment[77] - The company reported net cash used in investing activities of $33.6 million for the nine months ended September 30, 2025, compared to $25.5 million in 2024[77] Balance Sheet and Leverage - Total assets increased to $1.62 billion as of September 30, 2025, from $1.29 billion at the end of 2024, showing robust asset growth[53] - The company's total liabilities increased to $1.05 billion as of September 30, 2025, compared to $865.9 million at the end of 2024[53] - Net leverage improved to 0.5x as of September 30, 2025, compared to 1.0x as of December 31, 2024[30] - Total net debt decreased to $158.8 million as of September 30, 2025, down from $230.1 million as of December 31, 2024, indicating improved financial leverage[73] - The company's net leverage ratio improved to 0.5x as of September 30, 2025, compared to 1.0x as of December 31, 2024[73] Other Financial Metrics - Cash, cash equivalents, and restricted cash rose to $149.2 million at the end of Q3 2025, up from $86.0 million at the end of 2024[54] - Interest expense, net for the nine months ended September 30, 2025, was $18.8 million, an increase from $14.0 million for the nine months ended December 31, 2024[72] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $108.6 million, up from $82.7 million in 2024, representing a 31% increase[77] - The EBITDA margin for the three months ended September 30, 2025, improved to 9.0%, up from 8.5% in the prior year[67] - The company is unable to provide a reconciliation of full-year 2025 EBITDA margin guidance to its nearest GAAP measure due to the unpredictability of non-GAAP adjustments[78]

Interest Income and Margin - Net interest income for Q3 2025 was $13.2 million, an increase of $1.9 million compared to Q3 2024, primarily due to lower liability expenses and higher asset yields[212][232]. - The net interest margin for Q3 2025 increased to 3.20%, up from 2.63% in Q3 2024, driven by a decrease in liability costs and favorable impacts from loan payoffs[233]. - For the nine months ended September 30, 2025, net interest income rose to $38.1 million, a $3.3 million increase from the same period in 2024, attributed to lower liability costs and income from loan payoffs[234]. - For the three months ended September 30, 2025, net interest income was $13,214 thousand, compared to $11,285 thousand for the same period in 2024, reflecting an increase in the interest rate spread from 1.99% to 2.61%[238]. - The net interest margin for the nine-month period ended September 30, 2025, increased to 3.11%, up from 2.71% for the same period in 2024, primarily due to a decrease in liability costs of 33 basis points and favorable impacts from loan payoffs[235][241]. - The company reported a net interest income increase of $3,353 thousand for the nine months ended September 30, 2025, compared to the same period in 2024, driven by favorable rate changes[247]. Credit Loss Provision - The total provision for credit losses for Q3 2025 was $0.650 million, compared to a negative provision of $0.400 million in Q3 2024, reflecting changes in credit quality and delinquent loans[213]. - For the nine months ended September 30, 2025, the provision for credit losses was $1.750 million, a significant increase from a negative provision of $2.725 million in the same period in 2024[217]. - The provision for credit losses is determined based on estimated lifetime losses in the loan portfolio, using a third-party model to evaluate and estimate the Allowance for Credit Losses[249]. - For the nine months ended September 30, 2025, the total provision for credit losses was $1.750 million, compared to a negative provision of $2.725 million for the same period in 2024, driven by higher reserves on impaired loans and increased delinquencies[251]. Non-Interest Income and Expense - Non-interest income for Q3 2025 increased by $0.1 million, mainly due to higher gains on loan sales[214]. - Non-interest expense for Q3 2025 rose to $11.1 million, an increase of $0.7 million from Q3 2024, primarily due to higher compensation expenses[214]. - Non-interest income for Q3 2025 increased by 3.46% to $3.022 million compared to Q3 2024, while for the nine months ended September 30, 2025, it rose by 4.36% to $8.451 million[257]. - The gain on sale of loans increased by 31.91% in Q3 2025 compared to Q3 2024, with a 60% increase in SBA loan sales contributing significantly[259]. - Total non-interest expense for Q3 2025 was $11.051 million, a 6.05% increase from $10.421 million in Q3 2024, primarily due to higher compensation and related benefits[263]. Income and Earnings - The company reported net income of $3.7 million for Q3 2025, compared to $3.3 million for Q3 2024, with diluted earnings per share increasing to $0.37 from $0.32[224]. - For the nine months ended September 30, 2025, net income was $10.1 million, down from $11.0 million in the same period in 2024, with diluted earnings per share decreasing to $1.02 from $1.07[224]. Loans and Loan Portfolio - As of September 30, 2025, total loans outstanding decreased by $0.05 billion to $1.32 billion from $1.37 billion at December 31, 2024[274]. - The composition of the loan portfolio shows that commercial real estate loans accounted for $683.9 million (51.7%) as of September 30, 2025, compared to $709.0 million (51.8%) at December 31, 2024[274]. - The total outstanding loan balance in the commercial real estate (CRE) portfolio is $1,008 million, with a weighted average loan-to-value (LTV) ratio of 52% for non-owner occupied CRE and 51% for owner-occupied CRE[276]. - The average loan size for non-owner occupied commercial real estate loans was $0.6 million with a weighted average loan-to-value (LTV) ratio of 52% as of September 30, 2025[275]. - Criticized loans in the commercial real estate portfolio amounted to $5.8 million, representing 1.3% of total non-owner occupied loans as of September 30, 2025[275]. - The average outstanding loan balance was $1,342,635 thousand for the three months ended September 30, 2025[283]. - Total loans at the end of the period decreased to $1,323,010 thousand as of September 30, 2025, from $1,368,981 thousand at December 31, 2024, representing a decline of approximately 3.9%[286]. Deposits - The total deposits for the nine months ended September 30, 2025, were $1,243,294 thousand, with an interest expense of $25,104 thousand, compared to $1,272,173 thousand and $28,712 thousand in 2024[241]. - Total deposits decreased by $7.6 million to $1,480,554 thousand during the nine months ended September 30, 2025, largely due to a reduction in brokered deposits[296]. - The composition of the deposit portfolio as of September 30, 2025, was 58% consumer, 28% commercial, 12% public, and 2% wholesale deposits[296]. - Uninsured deposits accounted for 28% of total deposits at September 30, 2025, amounting to $421.5 million, compared to 29% at December 31, 2024[298]. Capital and Liquidity - Stockholders' equity increased to $186.8 million at September 30, 2025, from $179.1 million at December 31, 2024, driven by net income of $10.1 million and a decrease in net unrealized losses of $3.2 million[310]. - The liquidity ratio increased by 1.69% to 13.44% at September 30, 2025, compared to December 31, 2024[312]. - On-balance sheet liquidity, collateralized new borrowing capacity, and uncommitted federal funds borrowing availability was $741 million, or 267% of uninsured and uncollateralized deposits at September 30, 2025[315]. - The Company had approximately $191.5 million in unused loan commitments as of September 30, 2025, compared to $137.0 million at December 31, 2024[320]. - The Bank's available and unused portion under the FHLB borrowing arrangement was approximately $414.4 million as of September 30, 2025, compared to $424.7 million as of December 31, 2024[301]. Risk Management - The ALCO is responsible for managing interest rate risk and meets regularly to review economic conditions and interest rate outlook[325]. - The estimated change in Economic Value of Equity (EVE) for a +300 basis points shift in interest rates at September 30, 2025, was an increase of 6%[329]. - The projected change in net interest income for a +300 basis points shift in interest rates at September 30, 2025, was a decrease of 4%[331].

Financial Performance - Total revenues for Q3 2025 were $438.5 million, a 6.4% increase from $412.1 million in Q3 2024[3] - Net income for Q3 2025 reached $58.3 million, up 70.0% from $34.3 million in Q3 2024, resulting in a diluted EPS of $1.40[3][6] - Core earnings for Q3 2025 were $56.6 million, a 64.5% increase compared to $34.4 million in Q3 2024, with core EPS of $1.36[3][6] Guidance and Projections - Full-year 2025 core EPS guidance has been increased to a range of $4.50 to $4.70[5][6] - The company aims to achieve record annual core earnings and a double-digit shareholder return on equity by 2025[7] Book Value Metrics - Book value per share at the end of Q3 2025 was $35.31, an 11.7% increase from $31.60 in Q3 2024[3] - Adjusted book value per share was $39.51, up 7.1% from $36.89 in Q3 2024[3] - Tangible book value per share increased by more than 9%[6] Operational Efficiency - The Property & Casualty segment's combined ratio improved to 87.8%, more than 10 points better than the prior year[6] - Year-to-date results indicate strong profitability and sustained growth momentum across the diversified business[5][7]

Financial Performance - Revenue for the three months ended September 30, 2025, was $196.0 million, a slight increase from $195.3 million in the same period of 2024[115] - Net income for the same period was $1.1 million, with a net income margin of 0.6%, down from $4.0 million and 2.0% in the prior year[115] - Adjusted EBITDA for the three months ended September 30, 2025, was $66.3 million, representing an Adjusted EBITDA Margin of 33.8%, compared to $65.0 million and 33.3% in the same period of 2024[115] - The company reported a revenue increase to $602.1 million for the nine months ended September 30, 2025, compared to $593.7 million in the same period of 2024[115] - Net income for the nine months ended September 30, 2025, was $25.0 million, with a net income margin of 4.2%, up from $9.7 million and 1.6% in the prior year[115] - Adjusted EBITDA for the nine months ended September 30, 2025, was $205.5 million, with an Adjusted EBITDA Margin of 34.1%, compared to $193.2 million and 32.5% in the same period of 2024[115] - Net income for Q3 2025 was $1.1 million, down from $4.0 million in Q3 2024, resulting in a net income margin of 0.6% compared to 2.0%[121] - Operating income rose to $64.8 million, compared to $47.7 million in the prior year, reflecting improved operational efficiency[146] - Net income for the nine months ended September 30, 2025, was $25.0 million, significantly up from $9.7 million in 2024, marking a year-over-year increase of 159%[146] Consumer Metrics - Monthly Active Consumers decreased to 5.4 million in Q3 2025 from 6.6 million in Q3 2024, reflecting a year-over-year decline[112] - Subscription plans as of September 30, 2025, totaled 671,000, a decrease from 701,000 in the same period of 2024[114] - Subscription revenue decreased by $0.6 million, or 3%, year-over-year, with 671 thousand subscription plans as of September 30, 2025, down from 701 thousand a year earlier[132] Revenue Breakdown - Prescription transactions revenue decreased by $13.1 million, or 9%, year-over-year, primarily due to a decline in Monthly Active Consumers[131] - Pharma manufacturer solutions revenue increased by $15.2 million, or 54%, year-over-year, driven by organic growth and market expansion[133] - Prescription transactions revenue decreased by $13.3 million, or 3%, year-over-year, while pharma manufacturer solutions revenue increased by $27.9 million, or 35%[146] Expenses and Costs - General and administrative expenses rose by $6.4 million, or 25%, year-over-year, mainly due to a $5.5 million estimated loss related to ongoing litigation[137] - Total costs and operating expenses for Q3 2025 were $181.4 million, an increase from $174.8 million in Q3 2024[127] - Sales and marketing expenses decreased by $20.3 million, or 7%, year-over-year, largely due to reduced stock-based compensation and third-party marketing expenses[151] - General and administrative expenses decreased by $4.3 million, or 5%, primarily due to a reduction in estimated legal settlement expenses[152] - Depreciation and amortization expenses increased by $11.6 million, or 23%, year-over-year, reflecting higher asset utilization and investment[153] Cash Flow and Investments - Cash and cash equivalents as of September 30, 2025, totaled $273.5 million, with an additional $80.2 million available under a revolving credit facility[156] - Net cash provided by operating activities decreased by $4.1 million year-over-year, primarily due to increased cash outflows from changes in operating assets and liabilities[163] - Net cash used in investing activities increased by $34.5 million, driven by a $30.0 million increase in cash paid for business acquisitions[164] Strategic Initiatives - The company acquired ScriptDrop, Inc. for $13.5 million in cash on October 16, 2025, enhancing its prescription delivery capabilities[108] - The company plans to expand its condition-specific subscription programs into additional conditions before the end of 2025[103]

Financial Performance - For the three months ended September 30, 2025, net interest income increased by $10.5 million, or 25.9%, compared to the same period in 2024, reaching $50.8 million[290]. - The company's net income for the three months ended September 30, 2025, was $18.06 million, representing a 41.3% increase compared to $12.78 million in the same period of 2024[290]. - For the nine months ended September 30, 2025, net interest income increased to $143.0 million, up from $117.3 million in 2024, representing a growth of 21.9%[295]. - Total noninterest income for the nine months ended September 30, 2025, was $9.4 million, an increase of $1.6 million, or 21.2%, compared to $7.7 million for the same period in 2024[311]. - Total noninterest expense for the nine months ended September 30, 2025, was $85.8 million, an increase of $8.7 million, or 11.3%, compared to $77.1 million for the same period in 2024[314]. Asset and Loan Growth - As of September 30, 2025, the company reported total assets of $5.06 billion, total loans of $4.17 billion, total deposits of $4.37 billion, and total shareholders' equity of $513.8 million[280]. - The average loans increased from $3.74 billion for the nine months ended September 30, 2024, to $4.06 billion for the same period in 2025, primarily driven by growth in commercial loans[292]. - Average loans increased from $3.80 billion in Q3 2024 to $4.18 billion in Q3 2025, primarily driven by growth in commercial loans[299]. - Total assets as of September 30, 2025, were $4.89 billion, compared to $4.45 billion in 2024, marking an increase of 9.9%[295]. - Total loans as of September 30, 2025, were $4.17 billion, an increase of $198.7 million, or 5.0%, compared to $3.97 billion as of December 31, 2024[322]. Credit Losses and Provisions - The provision for credit losses for the three months ended September 30, 2025, was $2.76 million, a significant increase of 154.7% from $1.08 million in the same period in 2024[290]. - The provision for credit losses for the nine months ended September 30, 2025, was $5.3 million, an increase from $4.5 million for the same period in 2024[307]. - The allowance for credit losses for loans totaled $42.6 million, or 1.02% of total loans, compared to $40.3 million, or 1.02% of total loans, as of December 31, 2024[308]. - The ratio of nonaccrual loans to total loans improved to 0.26% as of September 30, 2025, down from 0.67% as of December 31, 2024[334]. - The allowance for credit losses to nonaccrual loans ratio was 396.93% as of September 30, 2025, indicating strong coverage for potential losses[334]. Deposits and Funding - Total deposits as of September 30, 2025, were $4.37 billion, an increase of $62.2 million, or 1.4%, compared to $4.31 billion as of December 31, 2024[350]. - Noninterest-bearing deposits decreased by $152.1 million, or 25.3%, to $450.0 million as of September 30, 2025[350]. - Total interest-bearing account balances increased by $214.3 million, or 5.8%, to $3.92 billion as of September 30, 2025[350]. - The average total loans to average deposits ratio was 96.5% for the nine months ended September 30, 2025, slightly down from 96.6% for the year ended December 31, 2024[363]. - The borrowing capacity under FHLB advances was $524.5 million as of September 30, 2025, down from $623.7 million as of December 31, 2024[353]. Mergers and Acquisitions - The company entered into a merger agreement on October 22, 2025, to merge with Keystone, which is expected to close in the first quarter of 2026[283]. Interest Rate Management - The company manages interest rate risk through a measurement system for monitoring net interest rate sensitivity, with a goal to minimize risk while maximizing income[381]. - Under various interest rate shock scenarios, a 200 basis point increase in rates is estimated to result in a 3.15% increase in net interest income[387]. - The cost of senior debt and note payable was 6.17% for the nine months ended September 30, 2025, compared to 6.66% for the same period in 2024[356]. Regulatory Compliance - The Company was classified as "well capitalized" under FDIC regulations as of September 30, 2025, meeting all applicable regulatory capital requirements[368]. - The company qualifies as an "emerging growth company," allowing it to take advantage of reduced reporting requirements until certain thresholds are met[395].

Financial Performance - Total net revenue for Q1 FY2026 was $240.0 million, a decrease of 3% from $248.1 million in the prior-year period[2][8] - Net income from continuing operations was $15.3 million, or $0.21 per share, down 79% from $72.9 million, or $0.72 per share, in the prior-year period[2][9][10] - Adjusted EBITDA for Q1 FY2026 was $55.0 million, a decrease of 12% from $62.4 million in the prior-year period[2][11] - Performance Services segment net revenue decreased by 9% to $87.9 million, primarily due to lower license revenue[17] - Supply Chain Services segment net revenue was approximately flat at $152.1 million compared to $151.4 million in the prior-year period[13] - Adjusted EPS for Q1 FY2026 was $0.30, down 12% from $0.34 in the prior-year period[6][12] - Operating income decreased to $24,884,000 for the three months ended September 30, 2025, down from $35,315,000 in the prior year, representing a decline of approximately 29%[49] - Net income attributable to stockholders for the three months ended September 30, 2025, was $17,579,000, compared to $70,784,000 in the same period of 2024, reflecting a decrease of about 75%[49] - Basic earnings per share from continuing operations was $0.21 for the three months ended September 30, 2025, down from $0.72 in the prior year, a decline of approximately 71%[49] - Net income from continuing operations for Q3 2025 was $15,287, a decrease of 78.9% compared to $72,940 in Q3 2024[58] - Free cash flow for Q3 2025 was $(14,022), down from $16,170 in Q3 2024, indicating a significant decline in cash generation[55] - Adjusted EBITDA for Q3 2025 was $54,950, a decrease of 12.0% from $62,428 in Q3 2024[58] - Net revenue for Q3 2025 was $240,004, down 3.4% from $248,142 in Q3 2024[66] - Basic earnings per share attributable to stockholders for Q3 2025 was $0.21, down from $0.71 in Q3 2024[63] Cash and Liquidity - Cash and cash equivalents as of September 30, 2025, were $43.4 million, down from $83.7 million as of June 30, 2025[18] - Net cash provided by operating activities decreased to $15.9 million from $80.0 million in the prior-year period[19] - Cash and cash equivalents decreased significantly to $43,380,000 as of September 30, 2025, from $83,725,000 as of June 30, 2025, a decline of approximately 48%[51] - The company reported a net cash provided by operating activities from continuing operations of $15,930, down 80.1% from $80,043 in Q3 2024[55] - The company made cash payments of $10,448 to OMNIA for the sale of future revenues in Q3 2025, compared to $20,949 in Q3 2024[55] - The company reported a net decrease in cash and cash equivalents of $40,345 in Q3 2025, compared to a decrease of $38,190 in Q3 2024[53] Assets and Liabilities - Total assets decreased to $3,051,371,000 as of September 30, 2025, from $3,097,074,000 as of June 30, 2025, a reduction of about 1.5%[51] - Total liabilities decreased to $1,523,098,000 as of September 30, 2025, from $1,566,497,000 as of June 30, 2025, a reduction of about 2.8%[51] Corporate Actions and Guidance - The company has suspended the declaration and distribution of common stock dividends due to a pending acquisition by Patient Square Capital[24] - Premier is withdrawing previously issued fiscal-year 2026 guidance due to the pending acquisition[7] - The pending acquisition of Premier by Patient Square Capital is subject to regulatory approvals and other conditions, which may affect future operations and financial results[44] - The company expects to wind down the remaining components of the Contigo Health business by December 31, 2025, which may impact future financial performance[42] - Adjusted net income and adjusted EBITDA measures excluding Contigo Health are provided for better understanding of operating performance[42] Impairment and Other Expenses - The company incurred impairment of assets amounting to $1,758 in Q3 2025, with no such expense reported in Q3 2024[58]

Financial Performance - For the three months ended September 30, 2025, total net service revenue was $362.3 million, a 25.0% increase from $289.8 million in the same period of 2024[90] - Net income for the three months ended September 30, 2025, was $22.8 million, compared to $20.2 million for the same period in 2024, reflecting a 13.3% increase[90] - Net service revenues increased by 25.0% to $362.3 million for the three months ended September 30, 2025, compared to $289.8 million for the same period in 2024[129] - Net service revenues increased by 22.4% to $1,049.5 million for the nine months ended September 30, 2025, compared to $857.5 million for the same period in 2024[135] Segment Performance - The personal care segment generated $275.8 million in net service revenue for the three months ended September 30, 2025, up 28.0% from $215.4 million in 2024[90] - For calendar year 2025, CMS estimates a 0.5% increase in Medicare payments to home health agencies, based on a 2.7% payment update percentage[113] - The hospice segment revenue increased due to organic growth, contributing to overall revenue increases[129] - The personal care segment generated net service revenues of $803.2 million for the nine months ended September 30, 2025, reflecting a 26.2% increase from $636.3 million in 2024[140] Revenue Sources - Managed care organizations accounted for 37.0% of net service revenues in Q3 2025, compared to 34.3% in Q3 2024[88] - Medicare accounted for 93.1% of hospice segment revenues in Q3 2025, up from 91.5% in Q3 2024[101] - Net service revenues from Medicare accounted for 93.1% of total revenues for the three months ended September 30, 2025[153] - Net service revenues from state, local, and other governmental programs accounted for 50.5% of net service revenues for the three months ended September 30, 2025[144] Acquisitions and Goodwill - The company completed the acquisition of Curo Health Services for approximately $350.6 million, expanding its personal care segment into new markets[93] - The company recognized goodwill of $19.0 million from the acquisition of Helping Hands, which expanded its services into hospice and home health markets in Pennsylvania[96] - Revenue growth in the personal care segment was primarily due to the completion of the Gentiva Acquisition and the Helping Hands Acquisition[129] - The company completed the Gentiva Acquisition on December 2, 2024, contributing to revenue growth in the personal care and home health segments[135] Expenses and Profitability - Gross profit margin improved to 32.2% for the three months ended September 30, 2025, up from 31.8% in the same period in 2024, driven by growth in the higher margin hospice segment[130] - General and administrative expenses rose to $79.4 million for the three months ended September 30, 2025, compared to $62.8 million for the same period in 2024, with a notable increase due to acquisitions[131] - Interest expense increased significantly to $3.3 million for the three months ended September 30, 2025, from $0.6 million in the same period in 2024, primarily due to higher borrowings[132] - Gross profit as a percentage of net service revenues increased to 49.4% for the three months ended September 30, 2025, up from 46.8% in 2024[155] Cash Flow and Financing - The company had cash balances of $101.9 million as of September 30, 2025, compared to $98.9 million at December 31, 2024, and a total of $650.0 million available under its revolving credit facility[165] - During the nine months ended September 30, 2025, the company used $3.4 million for acquisitions and drew $11.3 million on its credit facility, while repaying $80.0 million[166] - Net cash provided by operating activities was $92,744,000 for the nine months ended September 30, 2025, down from $106,016,000 in 2024, while net cash used in investing activities increased to $(22,444,000) from $(124,000)[173] - Financing activities included an $80.0 million payment on the revolving credit facility, with borrowings of $11.3 million to partially fund the Helping Hands Acquisition[176] Market Conditions and Challenges - The company faced significant competition for new caregivers due to a tight labor market and ongoing inflationary pressures[98] - The company anticipates that future Medicaid reform initiatives may further reduce expenditures and involve additional administrative changes, impacting reimbursements for services rendered[118] - If variable interest rates on outstanding borrowings of approximately $154.3 million increased by 100 basis points, net income would decrease by $1.1 million, or $0.06 per diluted share[183] Operational Metrics - Average billable census increased by 33.9% to 50,480 for the three months ended September 30, 2025, compared to 37,701 in the same period of 2024[140] - New admissions increased by 3.2% to 4,577 in the three months ended September 30, 2025, compared to 4,437 in 2024, while total volume decreased by 7.5% year-over-year[164] - Days sales outstanding (DSO) improved to 35 days as of September 30, 2025, down from 39 days at December 31, 2024, indicating better collection efficiency[178]