Financial Performance - XPLR Infrastructure reported a net loss of $37 million for Q3 2025, with adjusted EBITDA of $455 million, consistent with the prior-year period [3]. - Operating revenues for Q3 2025 were $315 million, a slight decrease from $319 million in Q3 2024 [16]. - Total operating expenses for Q3 2025 were $308 million, compared to $284 million in Q3 2024, reflecting an increase of approximately 8.5% [16]. - The net loss attributable to XPLR for Q3 2025 was $37 million, compared to a net loss of $40 million in Q3 2024 [16]. - Earnings per common unit attributable to XPLR for Q3 2025 were $(0.40), slightly improved from $(0.43) in Q3 2024 [16]. - Net income for the three months ended September 30, 2025, was a loss of $64 million, compared to a loss of $83 million for the same period in 2024 [21]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $1,482 million, slightly up from $1,476 million in 2024 [21]. - Free cash flow before growth for the three months ended September 30, 2025, was $179 million, compared to $189 million in 2024 [21]. Cash Flow and Assets - Free cash flow before growth (FCFBG) for Q3 2025 was $179 million, down 5% year-over-year, primarily due to higher HoldCo interest expenses [3]. - Total current assets increased to $1,214 million as of September 30, 2025, from $860 million at December 31, 2024 [24]. - Cash and cash equivalents increased to $711 million as of September 30, 2025, from $283 million at December 31, 2024 [24]. - The net increase in cash, cash equivalents, and restricted cash for the nine months ended September 30, 2025, was $447 million, compared to an increase of $52 million in 2024 [26]. - The company generated net cash provided by operating activities of $553 million for the nine months ended September 30, 2025, compared to $517 million in 2024 [26]. Debt and Capital Structure - XPLR Infrastructure reduced its planned HoldCo debt issuance by $250 million for 2025-2026 [4]. - Interest expense for Q3 2025 was $94 million, down from $124 million in Q3 2024, indicating a reduction of approximately 24.2% [16]. - Total liabilities rose to $8,148 million as of September 30, 2025, compared to $7,426 million at December 31, 2024 [24]. Operational Highlights - The company completed approximately 960 megawatts of its announced 1.6-gigawatt repowering program to date [4]. - The company remains focused on simplifying its capital structure and optimizing its portfolio to create long-term value in the U.S. power sector [4]. - XPLR Infrastructure's portfolio includes diversified clean energy assets across wind, solar, and battery storage technologies [6]. Future Projections - For 2025, adjusted EBITDA is expected to be between $1.85 billion and $2.05 billion, while for 2026, it is projected to be between $1.75 billion and $1.95 billion [5]. - The decline in adjusted EBITDA expectations from 2025 to 2026 is mainly due to the absence of contributions from the Meade pipeline investment, sold in September 2025 [5]. Risks and Challenges - The company faces various risks, including weather conditions, operational challenges, and regulatory changes that could impact future performance [12]. - Management emphasizes the importance of adjusted EBITDA and FCFBG as key financial measures for performance analysis and capital allocation [8]. Impairments and Other Income - The company reported a goodwill impairment charge of $253 million for the nine months ended September 30, 2025 [16]. - The total other income (deductions) for Q3 2025 was $(23) million, an improvement from $(79) million in Q3 2024 [16]. - Equity in earnings of equity method investees increased to $66 million in Q3 2025 from $30 million in Q3 2024 [16]. - Capital expenditures for the nine months ended September 30, 2025, were $684 million, significantly higher than $189 million in 2024 [26].

Financial Performance - Jackson Financial Inc. reported significant revenues primarily from fee income, spread income, and margins on insurance products[286]. - Net income attributable to common shareholders for Q3 2025 was $65 million, a significant improvement from a loss of $480 million in Q3 2024[291]. - Adjusted Operating Earnings for Q3 2025 increased to $433 million, compared to $350 million in Q3 2024, while for the nine months ended September 30, 2025, it reached $1,159 million, up from $1,094 million in the same period last year[291]. - Total revenues for the nine months ended September 30, 2025, increased to $4,695 million, up from $3,046 million in the same period of 2024, representing a growth of 54.0%[337]. - The company experienced a pretax income of $72 million for the three months ended September 30, 2025, a significant improvement from a pretax loss of $579 million in the same period of 2024[338]. - Net investment income for the three months ended September 30, 2025, was $856 million, an increase of 17.9% from $726 million in the same period of 2024[337]. - The company reported a total of $1,344 million in benefits and expenses for the three months ended September 30, 2025, down from $2,700 million in the same period of 2024[337]. Business Segments - The company manages its business through three reportable segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks[289]. - Total retail annuity sales for Q3 2025 were $5,362 million, slightly up from $5,272 million in Q3 2024, and for the nine months ended September 30, 2025, total sales reached $13,773 million, compared to $13,192 million in the prior year[297]. - Operating revenues for the Retail Annuities segment totaled $1,411 million for the three months ended September 30, 2025, compared to $1,344 million for the same period in 2024[348]. - Total operating revenues for the Institutional Products segment rose to $148 million in Q3 2025 from $101 million in Q3 2024, reflecting strong performance in net investment income[354]. - For the Closed Life and Annuity Blocks segment, pretax adjusted operating earnings improved by $8 million to $15 million for Q3 2025, compared to $7 million in Q3 2024, mainly due to a $50 million increase in spread income[359]. Assets and Investments - The company holds significant assets due to funds withheld reinsurance arrangements, including the Athene Reinsurance Transaction, which impacts investment performance[287]. - As of September 30, 2025, total assets under management (AUM) reached $350,322 million, up from $324,718 million as of December 31, 2024, reflecting a growth of approximately 7.5%[305]. - Jackson invested assets increased to $55,285 million as of September 30, 2025, compared to $46,143 million at the end of 2024, representing a growth of about 19.9%[305]. - Total investments reached $67,691 million as of September 30, 2025, compared to $61,007 million at December 31, 2024, representing an increase of 10.9%[370]. - Available-for-sale debt securities increased to $46,087 million as of September 30, 2025, from $40,289 million at December 31, 2024, representing a growth of 14.0%[370]. Cash Flow and Shareholder Returns - Free cash flow for the parent company was $216 million in Q3 2025, down from $278 million in Q3 2024, while for the nine months ended September 30, 2025, it was $719 million compared to $527 million in the same period last year[292]. - The company returned $657 million to common shareholders from January 1, 2025, to September 30, 2025, consisting of $173 million in dividends and $484 million in share repurchases[292]. - During Q3 2025, Jackson Financial paid cash dividends totaling $67 million, including $56 million for common stock and $11 million for preferred stock[410]. - A total of 5,523,157 shares of common stock were repurchased for $484 million in the nine months ended September 30, 2025[412]. Risk Management and Regulatory Environment - The company emphasizes disciplined risk management and efficient operating platforms as core strengths[284]. - Net income volatility is experienced due to the lack of direct hedging against market risk benefit liabilities[288]. - The company is subject to various economic, industry, and regulatory trends that may affect its operations[290]. - The 2024 Fiduciary Advice Rule may lead to changes in compensation practices and product offerings, potentially impacting sales of annuities through distribution partners[320]. - Rising interest rates could increase cash surrender values of certain products, leading to higher regulatory reserves and potentially affecting the company's ability to pay dividends[311]. Demographic Trends and Market Positioning - Jackson Financial is positioned to grow profitably as the aging U.S. population transitions into retirement, supported by a strong distribution network[284]. - The company expects demographic trends, particularly the increase in retirement-age individuals, to drive significant demand for its products[317]. Financial Strength and Ratings - Jackson's principal insurance subsidiaries received financial strength ratings of A from A.M. Best and S&P, and A3 from Moody's, all with a stable outlook as of October 24, 2025[427]. - The financial strength ratings are influenced by factors such as market positioning, profitability, leverage, and liquidity, which are critical for consumer confidence and competitive positioning[428]. - As of September 30, 2025, the insurance company subsidiaries had statutory surplus well above the minimum required capital levels[399].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________ Form 10-Q ____________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-32601 LIVE NATION ENTERTAINMENT, INC. (Exact name of registra ...

Company Overview - The company was founded in September 2020, backed by GPC Partners Investments and AmFam, to address a growing demand for specialized insurance solutions [122]. - The company offers commercial specialty property and casualty insurance products, focusing on casualty, professional liability, and healthcare liability risks [123]. - The company has a strategic partnership with AmFam, allowing for efficient capital deployment and rapid growth in favorable market conditions [124]. - The company aims to create superior returns for stockholders by generating consistent underwriting profits across all market cycles [122]. Premiums and Revenue - Gross written premiums are influenced by new business submissions, binding of new business, renewals, and average premium rates [126]. - Net written premiums are calculated as gross written premiums less ceded written premiums, which are impacted by reinsurance contracts [128]. - Gross written premiums increased by $34.5 million, or 17.5%, to $231.5 million for the three months ended September 30, 2025, compared to $196.976 million for the same period in 2024 [152]. - Net written premiums rose by $20.7 million, or 16.1%, to $149.0 million for the three months ended September 30, 2025, from $128.3 million in 2024 [153]. - Net earned premiums increased by $23.2 million, or 22.1%, to $128.4 million for the three months ended September 30, 2025, compared to $105.2 million in 2024 [154]. - Total revenues grew by $27.2 million, or 23.3%, to $143.9 million for the three months ended September 30, 2025, from $116.8 million in 2024 [152]. Profitability Metrics - The loss ratio, expressed as a percentage, is the ratio of net losses and loss adjustment expenses to net earned premiums [143]. - The combined ratio, expressed as a percentage, is the sum of the loss ratio and expense ratio, indicating overall underwriting profitability [144]. - Underwriting income is defined as income before income taxes excluding the impact of net investment income and certain expenses [145]. - Adjusted net income excludes the impact of net realized investment losses and non-operating expenses, providing a clearer view of operational performance [146]. - The loss ratio was 65.9% for the three months ended September 30, 2025, an increase of 1.4 points from 64.5% in 2024 [156]. - The expense ratio decreased to 29.5% for the three months ended September 30, 2025, from 29.9% in 2024, driven by improved operating expense management [159]. - The combined ratio was 95.4% for the three months ended September 30, 2025, compared to 94.4% in 2024, reflecting a 1.0 point increase [162]. - Return on equity improved to 14.5% for the three months ended September 30, 2025, up from 13.7% in 2024, primarily due to the increase in net income [163]. Investment Performance - Net investment income rose by $3.5 million to $15.0 million for the three months ended September 30, 2025, from $11.5 million in 2024, attributed to higher average investment balances and yields [164]. - Net investment income rose by $13.3 million to $41.3 million for the nine months ended September 30, 2025, from $27.9 million in 2024 [182]. - The investment portfolio as of September 30, 2025, was primarily comprised of fixed maturity securities totaling $1,149.6 million, with a weighted average effective duration of 2.9 years and an average rating of "AA" [224]. - The fixed income investment portfolio had a book yield of 4.8% and a market yield of 4.6% as of September 30, 2025, compared to 4.6% and 4.9% respectively as of December 31, 2024 [224]. - The fixed maturity portfolio had an average rating of "AA" as of September 30, 2025, with approximately 92.0% rated "A" or better [254]. Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2025, was $271,438,000, an increase of 16.5% from $232,865,000 in 2024 [205]. - The company had $1.0 million in cash and investments as of September 30, 2025, indicating sufficient liquidity for the next 12 months [199]. - The company entered into a $75 million revolving credit facility on April 22, 2024, with no borrowings outstanding as of September 30, 2025 [201][202]. - The increase in cash provided by operating activities was primarily due to business growth and the timing of claim payments [205]. Reserves and Claims - The gross reserves for unpaid losses and loss adjustment expenses as of September 30, 2025, totaled $1,035,171 thousand, compared to $756,859 thousand as of December 31, 2024, indicating a 36.8% increase [234]. - The case reserves as of September 30, 2025, were $124,219 thousand, accounting for 12.0% of total gross reserves, while IBNR reserves were $910,952 thousand, making up 88.0% [234]. - The reserve for losses and loss adjustment expenses is estimated using individual case valuations and various actuarial procedures, reflecting significant judgment and assumptions about future trends [230]. - The company categorizes reserves into case reserves for reported claims and IBNR for incurred but not yet reported claims, with IBNR representing 88.0% of total gross reserves as of September 30, 2025 [231]. Tax and Regulatory Matters - Income tax expense was $10.5 million for the nine months ended September 30, 2025, compared to $7.6 million in 2024, with an effective tax rate of 21.3% [183]. - The maximum dividend that the insurance subsidiary could pay without regulatory approval was $16.1 million as of December 31, 2024 [198]. - The company did not declare any dividends during the nine months ended September 30, 2025, or the year ended December 31, 2024 [221]. Risk Management - The company manages interest rate risk by investing in securities with varied maturity dates to mitigate potential losses [250]. - The company has exposure to credit risk primarily through its holdings in fixed maturity securities, focusing on high credit quality issuers [254]. - The company performs periodic credit reviews of reinsurers to manage credit risk effectively [255]. - The company utilizes a fair value hierarchy for asset valuation, with Level 1 inputs being unadjusted quoted prices in active markets, Level 2 inputs being observable market data, and Level 3 inputs being unobservable inputs [244].

Revenue Performance - Revenue for Q3 2025 increased to $196.0 million, slightly up from $195.3 million in the same period last year[3] - Total revenue for the three months ended September 30, 2025, was $196.028 million, a slight increase of 0.4% compared to $195.251 million in the same period of 2024[29] - For FY 2025, the company anticipates revenue growth from $792.3 million in FY 2024, with adjusted EBITDA guidance of $265 - $275 million[12] Consumer Metrics - The company exited Q3 2025 with over 6 million prescription-related consumers using GoodRx services[23] - Monthly Active Consumers decreased to 5.4 million in September 2025 from 6.6 million in September 2024, representing a decline of approximately 18.2% year-over-year[24] - Subscription plans decreased to 671,000 in September 2025 from 701,000 in September 2024, reflecting a decline of approximately 4.3% year-over-year[24] Income and Profitability - Net income for Q3 2025 was $1.1 million, with a net income margin of 0.6%, down from $4.0 million and 2.0% respectively[6] - Operating income for the three months ended September 30, 2025, was $14.620 million, down 28.0% from $20.407 million in the same period of 2024[29] - Net income for the nine months ended September 30, 2025, was $25.014 million, compared to $9.650 million in the same period of 2024, indicating a significant increase of 159.4%[31] Cash Flow and Liquidity - Cash flow from operating activities was $76.0 million, down from $86.9 million in the same quarter last year[8] - Cash and cash equivalents decreased to $273.529 million as of September 30, 2025, down from $448.346 million at the end of December 2024, a decline of 39.0%[26] Expenses and Cost Management - Sales and marketing expenses for Q3 2025 were $83,532 thousand, accounting for 43% of revenue, down from 46% in Q3 2024[46] - General and administrative expenses for Q3 2025 were $32,014,000, an increase of 25.0% from $25,619,000 in Q3 2024[50] - Stock-based compensation expense for the nine months ended September 30, 2025, was $58,707,000, down from $78,067,000 in the same period of 2024[50] Adjusted Metrics - Adjusted EBITDA for Q3 2025 was $66.3 million, with an adjusted EBITDA margin of 33.8%, compared to $65.0 million and 33.3% in the prior year[7] - Adjusted Net Income for the nine months ended September 30, 2025, was $97,087 thousand, compared to $96,894 thousand for the same period in 2024, showing a marginal increase of 0.2%[44] - Adjusted Earnings Per Share (EPS) for Q3 2025 was $0.08, consistent with Q3 2024, while the diluted EPS also remained at $0.08[44] Asset and Liability Management - Total assets decreased to $1.325 billion as of September 30, 2025, from $1.388 billion at the end of December 2024, a decrease of approximately 4.5%[26] - Total liabilities increased to $724.795 million as of September 30, 2025, compared to $663.409 million at the end of December 2024, an increase of approximately 9.2%[27] Depreciation and Amortization - The company reported a total of $62.072 million in depreciation and amortization for the nine months ended September 30, 2025, compared to $50.442 million in the same period of 2024, an increase of 23.1%[31] - Depreciation and amortization for the nine months ended September 30, 2025, was $62,072,000, an increase of 23.0% from $50,442,000 in the same period of 2024[50] Share Repurchase - The company repurchased 13.4 million shares for $61.6 million during Q3 2025, with $81.4 million remaining in its share repurchase program[11]

Operational Performance - As of September 30, 2025, the company operates 18 wholly owned gathering systems, 43 treating facilities, and 27 processing plants, with total gas processing capacity increased to 2,190 MMcf/d after the North Loving plant start-up[120] - Total throughput for natural-gas assets increased by 2% from the previous quarter to 5,549 MMcf/d, with a 12% year-over-year increase from 5,170 MMcf/d[121] - The Delaware Basin's natural gas throughput was 2,113 MMcf/d, showing no significant change from the previous quarter and a 12% increase year-over-year[121] - Total throughput for natural-gas assets increased by 107 MMcf/d for the three months ended September 30, 2025, primarily due to higher volumes at the Brasada complex and Springfield gas-gathering system[135] - Total throughput attributable to WES for crude-oil and NGLs assets decreased by 22 MBbls/d for the three months ended September 30, 2025, primarily due to lower volumes at the DBM oil system[138] - Total throughput attributable to WES for produced-water assets increased by 99 MBbls/d for the nine months ended September 30, 2025, due to higher production[140] - 98% of wellhead natural-gas volume and 100% of crude-oil and produced-water throughput were serviced under fee-based contracts for the nine months ended September 30, 2025[216] Financial Performance - Total revenues for the three months ended September 30, 2025, were $952,484 thousand, a 1.2% increase from $942,322 thousand for the previous quarter, and a 5.0% increase from $2,676,720 thousand for the nine months ended September 30, 2024[132] - Operating income for the three months ended September 30, 2025, was $441,560 thousand, a slight decrease of 0.2% from $444,479 thousand in the previous quarter, and a decrease of 9.4% from $1,544,989 thousand for the nine months ended September 30, 2024[132] - Net income attributable to Western Midstream for the three months ended September 30, 2025, was $339,615 thousand, a decrease from $341,680 thousand in the previous quarter[132] - Net income for the nine months ended September 30, 2025, decreased by $253,500 thousand to $1,016,186 thousand, primarily due to a $307,500 thousand decrease in gain on divestiture[173] - Total revenues and other for the nine months ended September 30, 2025, were $2,811.9 million, an increase from $2,676.7 million in the prior year[166] - Adjusted Gross Margin for the nine months ended September 30, 2025, was $2,614.8 million, compared to $2,508.4 million for the same period in 2024[166] - Adjusted EBITDA for the nine months ended September 30, 2025, was $1,845,200 thousand, up 5% from $1,753,339 thousand in the same period of 2024[176] - Free Cash Flow for the nine months ended September 30, 2025, was $1,185,197 thousand, representing a 17% increase from $1,014,887 thousand in the prior year[176] Expenses and Costs - Total cost of product and operation and maintenance expenses for the three months ended September 30, 2025, was $263,572 thousand, a 1% decrease from $267,310 thousand in the previous quarter[148] - Natural-gas purchases increased by 39% to $7,210 thousand for the three months ended September 30, 2025, compared to $5,180 thousand in the previous quarter[148] - Operation and maintenance expense increased by $14.2 million for the nine months ended September 30, 2025, driven by a $15.5 million increase in utility expenses[154] - Depreciation and amortization expense increased by $25.5 million for the nine months ended September 30, 2025, due to capital projects being placed into service at the West Texas complex[156] - Interest expense increased by $5.6 million for the nine months ended September 30, 2025, primarily due to $28.2 million of interest incurred on the 5.450% Senior Notes issued during the third quarter of 2024[159] - Income tax expense decreased by $9.9 million for the nine months ended September 30, 2025, primarily due to a revaluation increasing the deferred tax liability balance in 2024[160] - Other operating expenses increased by 6% for the nine months ended September 30, 2025, totaling $773.6 million compared to $733.1 million in the prior year[155] Capital and Financing - The company retired the total principal amount of 3.100% and 3.950% Senior Notes due 2025 at par value during the first and second quarters of 2025, respectively[120] - The company retired $1 billion in Senior Notes due 2025 during the nine months ended September 30, 2025[201] - The carrying value of outstanding debt as of September 30, 2025, was $6.9 billion, with $440.5 million classified as long-term debt[200] - As of September 30, 2025, the company had a working capital surplus of $276.6 million and $2.0 billion in effective borrowing capacity under the RCF[192] - WES net cash used in financing activities was $(2,101,864) thousand for the nine months ended September 30, 2025, compared to $(921,617) thousand in 2024, indicating a significant increase in cash outflows[208] Market Conditions and Expectations - The average price of West Texas Intermediate crude oil ranged from a low of $57.13 per barrel to a high of $80.04 per barrel during the nine months ended September 30, 2025[124] - The company expects to adjust capital spending plans in response to fluctuating commodity prices and maintain financial flexibility[124] - High inflation has raised operating costs, impacting steel products, labor, and materials, which could negatively affect financial results[126] - A 10% change in commodity prices is not expected to materially impact operating income or cash flows for the next 12 months[216] - Future increases in the federal funds rate may lead to higher financing costs for WES Operating[217] - A 10% change in the applicable benchmark interest rate would not materially impact interest expense on outstanding borrowings as of September 30, 2025[217] - Additional short-term or variable-rate debt may be issued in the future under the RCF or other financing sources[218] Distributions - The company maintained a per-unit distribution of $0.910 for the third quarter of 2025, unchanged from the second quarter[120] - The Board declared a cash distribution to unitholders for Q3 2025 of $0.910 per unit, totaling $379.5 million[189] - Distributions to WES unitholders amounted to $1,051,503 thousand for the nine months ended September 30, 2025, up from $905,155 thousand in 2024, marking an increase of 16.1%[208]

Financial Performance - Total revenues for Q3 2025 increased to $69.29 million, up 24% from $55.78 million in Q3 2024[3] - Net loss available to common stockholders was $20.15 million, compared to a net income of $29.17 million in the same quarter last year[3] - Total revenues for the three months ended September 30, 2025, were $69,290,000, an increase from $55,783,000 in the same period of 2024, representing a growth of 24.3%[19] - Net loss attributable to LTC Properties, Inc. for the three months ended September 30, 2025, was $(19,995,000), compared to a net income of $29,366,000 in the same period of 2024, indicating a significant decline[19] - Earnings per common share for the three months ended September 30, 2025, were $(0.44), down from $0.66 in the same period of 2024[19] - GAAP net loss available to common stockholders for Q3 2025 was $(20,149) thousand, compared to a profit of $29,165 thousand in Q3 2024[29] - NAREIT FFO attributable to common stockholders for Q3 2025 was $(10,424) thousand, a decrease from $34,556 thousand in Q3 2024[29] - Core FFO for Q3 2025 was $31,994 thousand, up from $30,383 thousand in Q3 2024, indicating a 5.3% increase[29] - Funds available for distribution (FAD) for Q3 2025 was $35,720 thousand, compared to $34,721 thousand in Q3 2024, reflecting a 2.9% increase[29] - Basic NAREIT FFO per share for Q3 2025 was $(0.23), down from $0.79 in Q3 2024[40] - Diluted FAD for Q3 2025 was $35,874 thousand, compared to $34,922 thousand in Q3 2024, showing a 2.7% increase[40] Investments and Acquisitions - SHOP portfolio grew to nearly $450 million, representing approximately 20% of the total investment portfolio with an average occupancy of 87%[5] - LTC expects to close approximately $70 million in SHOP acquisitions by year-end, increasing SHOP's share to 24% of the total investment portfolio[7] - The company sold seven older skilled nursing centers for $123 million, with net proceeds of $120.8 million expected and a gain on sale of $78 million anticipated[8] - The company originated a $58 million mortgage loan at a fixed interest rate of 8.25% during Q3 2025[8] - The company originated a $57,550 thousand mortgage loan during Q3 2025, with initial funding of $55,350 thousand[32] - The company recorded a provision for credit losses reserve of $1,635 thousand related to a $163,460 thousand acquisition of properties in 2024[34] - The company’s investments in real estate properties for the nine months ended September 30, 2025, totaled $(268,169,000), compared to $(319,000) for the same period in 2024, indicating a significant increase in investment activity[24] Financial Position - Total assets as of September 30, 2025, were $2,044,420,000, an increase from $1,786,142,000 as of December 31, 2024, reflecting a growth of 14.4%[22] - Total liabilities as of September 30, 2025, were $999,170,000, compared to $733,137,000 as of December 31, 2024, representing an increase of 36.3%[22] - Cash and cash equivalents at the end of the period were $17,987,000, a decrease from $35,040,000 at the end of the same period in 2024[24] - Total liquidity as of September 30, 2025, was $399.7 million, with an additional proforma liquidity of $497.6 million[8][9] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $98,092,000, compared to $91,998,000 for the same period in 2024, showing an increase of 6.5%[24] Guidance and Projections - Diluted Core FFO per share for Q4 2025 is projected to be between $0.67 and $0.69, with full-year guidance raised to $2.69 to $2.71[9] - The Company updated its full year 2025 guidance, with diluted earnings per common share revised to a range of $2.45 to $2.47, down from the previous range of $2.59 to $2.61[42] - Diluted NAREIT FFO attributable to common stockholders remains unchanged at $1.60 to $1.62 for the updated guidance[42] - Diluted Core FFO is projected to be between $2.69 and $2.71, consistent with prior guidance[42] - SHOP NOI for the 2025 full-year is increased to a range of $16,200 to $17,200, up from the previous range of $10,400 to $15,600[42] - SHOP FAD capital expenditures are revised to a range of $960 to $970 per unit, increased from $660 to $920 per unit[42] - General and administrative expenses for the full year of 2025 are projected to be between $29,800 and $30,300, up from the previous range of $29,000 to $29,800[42] - Incremental SHOP segment ramp-up and execution costs are increased to a range of $1,500 to $1,700, up from the previous range of $1,100 to $1,500[42] - Anticipated working capital note write-off of $957,000 is expected in connection with a master lease termination and conversion to SHOP of two senior housing communities[42] - Total investments in the low guidance increased by $256,450 for a total of $391,500, while the high guidance remains unchanged at $460,000[42] Expenses - General and administrative expenses increased by 2% to a range of $29.8 million to $30.3 million[14]

Financial Performance - Revenue increased by $6.3 million, or 30%, to $27.4 million for the three months ended September 30, 2025, compared to $21.1 million for the same period in 2024[158]. - Revenue for the nine months ended September 30, 2025, increased by $15.0 million, or 26%, to $73.4 million compared to $58.4 million for the same period in 2024[167]. - Gross profit rose by $5.7 million, or 37%, to $21.2 million for the three months ended September 30, 2025, with a gross margin increase from 73.2% to 77.4%[159]. - Gross margin improved from 73.4% for the nine months ended September 30, 2024, to 77.2% for the same period in 2025[168]. - Net loss decreased by $1.96 million, or 36%, to $3.5 million for the three months ended September 30, 2025, compared to a net loss of $5.5 million for the same period in 2024[157]. Expenses - Sales and marketing expenses increased by $2.7 million, or 27%, to $12.6 million for the three months ended September 30, 2025, primarily due to personnel-related costs[160]. - Research and development expenses rose by $0.8 million, or 14%, to $6.6 million for the three months ended September 30, 2025, mainly due to personnel-related expenses[161]. - General and administrative expenses increased by $0.6 million, or 15%, to $4.6 million for the three months ended September 30, 2025, attributed to personnel-related costs[162]. - Total operating expenses for the nine months ended September 30, 2025, increased by $10.3 million, or 17%, to $71.2 million compared to $60.9 million for the same period in 2024[166]. Cash Flow and Financing - As of September 30, 2025, the company reported an accumulated deficit of $549.7 million and cash, cash equivalents, and short-term investments of $60.0 million[131]. - Net cash used in operating activities was $11.5 million for the nine months ended September 30, 2025, primarily due to a net loss of $18.7 million[192]. - Net cash provided by financing activities was $19.0 million for the nine months ended September 30, 2025, mainly from a follow-on offering of common stock and proceeds from the MidCap Term Loan[195]. - The company anticipates that its cash resources will fund operating expenses for at least twelve months from the issuance of its financial statements[188]. - Cash, cash equivalents, and short-term investments amounted to $60.0 million as of September 30, 2025, up from $52.8 million at December 31, 2024[203]. Loans and Debt - The CRG Term Loan had an interest rate of 13.5% per annum, with a PIK option elected for interest payments from March 2023 through June 2024[178]. - The MidCap Term Loan was established in June 2025, borrowing $60.0 million, with a revolving credit facility of up to $15.0 million, which has not been drawn upon as of September 30, 2025[181]. - Future minimum payments for the MidCap Term Loan total $89.6 million, with $6.1 million due within the next twelve months[185]. - The exit fee for the CRG Term Loan was reduced from 10% to 8% upon repayment in June 2025[180]. Product Development and Regulatory Affairs - The RNS System demonstrated a 62.5% median seizure reduction at six months and an 82.0% median seizure reduction at 36 months post-implant in drug-resistant focal epilepsy patients[127]. - The RNS System is currently indicated for adult patients with drug-resistant focal epilepsy, with ongoing studies to expand indications to younger patients[127][128]. - The company is actively engaging with the FDA to finalize a pathway for expanded indications for the RNS System by the end of 2025[128]. - The company plans to continue significant investments in research and development, clinical studies, and regulatory affairs to support ongoing and future regulatory submissions[132]. - The company expects to incur continued expenditures for commercialization efforts and investments in clinical studies and new product development[186]. Strategic Initiatives - The exclusive distribution agreement with DIXI Medical expired on September 30, 2025, and the company is in a wind-down period to sell remaining inventory[134]. - The company has initiated a pilot program to expand outreach to Level 4 comprehensive epilepsy centers in 2024 and is expanding these efforts through 2025[130]. - The company expects to continue incurring net losses and negative cash flows in the near term, potentially requiring additional funding[132]. - The gross margin is expected to improve as production volume increases, spreading fixed manufacturing costs over more units[150].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to ______ Commission File Number 001-38136 Accel Entertainment, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of i ...

Financial Performance - Kyndryl reported revenues of $3.7 billion for the second quarter of fiscal 2026, a decrease of 1% year-over-year and a 3.7% decline in constant currency[4]. - The company achieved a pretax income of $98 million, a year-over-year increase of $103 million from a pretax loss of $5 million in the prior-year period[4]. - Adjusted EBITDA was $641 million, reflecting a 15% year-over-year increase[6]. - Total revenue for the three months ended September 30, 2025, was $3,721 million, a decrease of 1% year-over-year[25]. - Adjusted EBITDA for the same period was $641 million, up from $557 million in 2024, reflecting a significant improvement[25]. - Net income for the six months ended September 30, 2025, was $124 million, compared to a loss of $32 million in 2024[27]. - The company reported a total adjusted EBITDA of $1,288 million for the six months ended September 30, 2025, an increase from $1,113 million in 2024[27]. - Adjusted earnings per share (EPS) for the three months ended September 30, 2025, was $0.38, compared to $0.01 in 2024[39]. Revenue Sources - Kyndryl generated $440 million in revenue from hyperscaler alliances, marking a 65% year-over-year increase, and is on track to exceed its fiscal 2026 target of $1.8 billion[9]. - Kyndryl Consult revenues grew by 28% year-over-year, with signings increasing by 11% over the last twelve months[9]. - Revenue from the United States decreased by 6% year-over-year to $899 million, while Japan's revenue decreased by 4% to $581 million[25]. Cash Flow and Capital Expenditures - Free cash flow for the quarter was $22 million, a decrease of $2 million compared to the prior-year period[4]. - Cash and equivalents at the end of September 2025 were $1,331 million, down from $1,786 million in March 2025[25]. - The company incurred capital expenditures of $272 million in the six months ended September 30, 2025, compared to $256 million in 2024[27]. - Net capital expenditures for Q3 2025 were $125 million, compared to $104 million in Q3 2024[41]. - Cash flows from operating activities for Q3 2025 were $147 million, compared to $149 million in Q3 2024[41]. - The company reported a net cash provided by operating activities of $22 million for the six months ended September 30, 2025, down from $101 million in 2024[27]. Shareholder Returns - The company announced an additional $400 million share repurchase authorization, complementing the previous $300 million program[8]. Future Outlook - Kyndryl reaffirms its fiscal 2026 outlook, expecting stronger second-half revenue driven by backlog and growth in Kyndryl Consult and hyperscaler-related revenue[11]. - The projected pretax margin associated with recent signings was in the high-single-digit range, indicating strong profit potential in service contracts[9]. Signings and Contracts - Signings for Q3 2025 were $2.8 billion, representing a 49% decrease compared to Q3 2024[41]. - Signings for the six months ended September 30, 2025 decreased by 31% to $5.6 billion compared to the same period in 2024[41]. - Signings for the twelve months ended September 30, 2025 decreased by 3% to $15.6 billion compared to the previous twelve months[41]. - The largest signing in the company's history occurred in Q3 2024, amounting to $1.8 billion[41]. Litigation and Workforce Adjustments - Significant litigation payments in Q3 2024 amounted to $6 million[41]. - Workforce rebalancing payments related to prior charges were $4 million in Q3 2024[41]. AI and Technology Development - Kyndryl is expanding its AI capabilities with new technology hubs and an AI Innovation Lab, with a quarter of its signings already containing AI-related content[9].