Revenue Growth - Third Quarter 2025 revenues reached $347.6 million, reflecting a 26.0% growth and 23.7% organic growth compared to $275.9 million in Q3 2024[2] - Full year 2025 revenue guidance has been increased to a range of $1,320 million to $1,330 million[20] - Total revenues for the three months ended September 28, 2025, were $347.6 million, a 26% increase from $275.9 million in the same period of 2024[33] - Product sales increased to $230.2 million for the three months ended September 28, 2025, compared to $172.0 million in the prior year, representing a 34% growth[33] - Unmanned Systems segment revenues for Q3 2025 were $87.2 million, representing a 35.8% organic growth from $64.2 million in Q3 2024[2] - Government Solutions segment revenues for Q3 2025 were $260.4 million, showing a 20.0% organic growth from $211.7 million in Q3 2024[10] - Unmanned Systems segment revenues increased to $87.2 million for the three months ended September 28, 2025, up 36% from $64.2 million in the same period of 2024[49] - Kratos Government Solutions segment revenues rose to $260.4 million for the three months ended September 28, 2025, a 23% increase from $211.7 million in the same period of 2024[49] Profitability - Q3 2025 net income was $8.7 million, with adjusted earnings per share (EPS) of $0.14, compared to $3.2 million and $0.11 EPS in Q3 2024[5][6] - Net income for the three months ended September 28, 2025, was $8.7 million, up from $3.2 million in the same period of 2024, reflecting a 171% increase[33] - Adjusted EBITDA for the three months ended September 28, 2025, was $30.8 million, compared to $24.6 million in the same period of 2024, indicating a 25% increase[33] - The Company anticipates organic revenue growth for 2026 and 2027, with expected EBITDA margins improving during these years[26] - Adjusted net income for the nine months ended September 28, 2025, was $60.3 million, compared to $54.1 million for the same period in 2024, reflecting an increase of 10.8%[58] Financial Position - Total backlog at the end of Q3 2025 was $1.480 billion, up from $1.414 billion at the end of Q2 2025[13] - Total current assets increased to $1,237.0 million as of September 28, 2025, compared to $872.1 million as of December 29, 2024, representing a 42% growth[52] - Cash and cash equivalents rose to $565.9 million as of September 28, 2025, up from $329.3 million as of December 29, 2024, indicating a 72% increase[52] - Total liabilities decreased to $441.8 million as of September 28, 2025, down from $597.7 million as of December 29, 2024[52] Investment and Expenses - The company plans to invest approximately $25 to $30 million in its Rocket Systems and Unmanned Systems businesses for procurement and development[18] - Research and development expenses for the three months ended September 28, 2025, were $10.0 million, slightly up from $9.9 million in the same period of 2024[33] - Stock-based compensation expense for the nine months ended September 28, 2025, was $26.4 million, compared to $23.0 million for the same period in 2024[47] - The company expects to continue incurring expenses similar to those adjustments made in the Adjusted EBITDA calculation, indicating ongoing operational costs[46] Cash Flow - Net cash used in operating activities was $(54.2) million for the nine months ended September 28, 2025, compared to $4.1 million for the same period in 2024[54] - Capital expenditures for the nine months ended September 28, 2025, were $(71.1) million, up from $(44.6) million in the same period in 2024, indicating a 59.5% increase[54] - Net cash provided by financing activities was $360.2 million for the nine months ended September 28, 2025, compared to $280.6 million for the same period in 2024, an increase of 28.4%[54] Future Outlook - Full year 2026 organic revenue growth rate forecast has been increased to 15% to 20% above the 2025 revenue forecast[2] - Preliminary target for 2027 organic revenue growth rate is set at 18% to 23% above the 2026 revenue forecast[3] - The Company plans to pursue higher margin programs and negotiate lower margin contracts expected to be renewed in the future[26] - The Company is focused on expanding its customer base and enhancing product acceptance to achieve anticipated growth levels[27]

Financial Performance - AIG reported adjusted after-tax income (AATI) of $1.2 billion, or $2.20 per diluted share, for Q3 2025, reflecting a 52% year-over-year increase[5]. - Net income attributable to AIG common shareholders was $519 million, or $0.93 per diluted share, up 13% from the prior year quarter[8]. - AIG reported a net income attributable to common shareholders of $2,076 million for the three months ended September 30, 2025, compared to $1,836 million for the same period in 2024, reflecting a 13.1% increase[63]. - The adjusted pre-tax income attributable to AIG common shareholders for the nine months ended September 30, 2024, was $3,241 million, compared to $3,922 million in 2025, indicating a growth of 21%[51]. - Basic earnings per share from continuing operations increased by 25.3% to $0.94 for the three months ended September 30, 2025, compared to $0.75 in 2024[58]. - Adjusted after-tax income attributable to AIG common shareholders per diluted share rose by 77.4% to $2.20 for the three months ended September 30, 2025, from $1.24 in 2024[58]. Underwriting and Insurance Operations - General Insurance underwriting income grew 81% year-over-year to $793 million, driven by lower catastrophe-related charges and favorable prior year development[15]. - The combined ratio for General Insurance improved to 86.8%, a 580 basis point improvement year-over-year[5]. - Net premiums written (NPW) for General Insurance were $6.2 billion, a decrease of 2% year-over-year on a reported basis[5]. - The combined ratio improved to 95.2% in Q3 2024 from 98.8% in the prior year quarter, driven by lower expense ratios and catastrophe-related charges[19]. - The adjusted year-to-date combined ratio (AYCR) improved to 95.5% from 97.8% in the prior year quarter, primarily due to better acquisition ratios[19]. - The combined ratio for North America Commercial improved to 82.6% for the three months ended September 30, 2025, down from 95.5% in the same period of 2024[67]. - The accident year combined ratio for International Commercial was 86.0% for the three months ended September 30, 2025, compared to 83.4% in 2024[67]. Investment Income - Total net investment income was $772 million, down 21% from the prior year quarter, but adjusted pre-tax income (APTI) basis net investment income increased 15% to $1.0 billion[10]. - Net investment income decreased by $48 million year-over-year to $120 million, mainly due to lower dividend income from Corebridge[25]. - For the three months ended September 30, 2025, net investment income was $772 million, a decrease from $973 million in the same period of 2024[59]. - Net investment income on Fortitude Re funds withheld assets was reported as a loss of $51 million for the three months ended September 30, 2024, compared to a loss of $29 million in 2025[49]. - Net investment income on Fortitude Re funds withheld assets was $(29) million for the three months ended September 30, 2025, compared to $(51) million in 2024[59]. Shareholder Returns and Equity - AIG returned approximately $1.5 billion to shareholders in Q3 2025, including $1.25 billion in share repurchases and $250 million in dividends[12]. - Book value per share increased to $75.45 as of September 30, 2025, a 2% increase from June 30, 2025[13]. - Total AIG common shareholders' equity as of September 30, 2024, was $45,039 million, up from $41,501 million as of June 30, 2025[61]. - Book value per share increased by 5.6% to $71.46 as of September 30, 2024, compared to the previous quarter[61]. - Total adjusted common shareholders' equity reached $46,582 million as of September 30, 2024, compared to $42,891 million as of June 30, 2025[61]. - Total financial and hybrid debt stood at $9,051 million as of September 30, 2025, representing 18.0% of total capital of $50,168 million[64]. Operational Costs and Expenses - Corporate and other general operating expenses improved by $58 million from the prior year quarter, reflecting a reapportionment of expenses[25]. - Interest expense decreased by $10 million from the prior year quarter, primarily due to debt reduction[25]. - AIG incurred restructuring and other costs of $137 million for the three months ended September 30, 2024, which increased to $153 million in 2025, reflecting a rise of 11.7%[49]. Strategic Initiatives - AIG announced strategic investments in Convex Group and Onex Corporation, and agreements to acquire renewal rights for Everest Group's global retail commercial insurance portfolios, representing $2 billion of aggregate premium[3]. - AIG's Travel business negatively impacted net premiums written by $193 million in the three months ended September 30, 2025[66]. Conference Call - AIG will host a conference call on November 5, 2025, at 8:30 a.m. ET to review these results[23].

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: 001-37985 ANAPTYSBIO, INC. (Exact name of registrant as specified in its charter) Delaware 20-3828755 (State or other jurisdiction of in ...

Financial Performance - Premium income for Q3 2025 reached $2,688 million, a 2.3% increase from Q3 2024, and $8,139 million for the first nine months, up 3.5% year-over-year[317]. - Total revenue for Q3 2025 was $3,378 million, reflecting a 5.0% increase from Q3 2024, and $9,831 million for the first nine months, up 1.9% year-over-year[317]. - Net income for Q3 2025 was $39.7 million, a significant decline of 93.9% compared to $645.7 million in Q3 2024, with a year-to-date net income of $564.4 million, down 60.5%[317]. - Adjusted Operating Income for the first nine months of 2025 was $377.5 million, a decrease of 20.5% from $474.7 million in the same period of 2024[336]. - Adjusted operating income for the Unum US segment was $334.9 million in Q3 2025, a decrease of 7.8% compared to Q3 2024[335]. - Adjusted operating income for the Closed Block segment was $14.1 million in Q3 2025, a 58.8% decline from $34.2 million in Q3 2024, reflecting challenges in the long-term care product line[387]. Investment Income - Net investment income decreased by 9.7% to $477 million in Q3 2025, and by 2.3% to $1,551 million for the first nine months compared to the previous year[317]. - Net investment income decreased in Q3 2025 and the first nine months of 2025 compared to the same periods in 2024, primarily due to a decrease in invested assets and yield, partially offset by higher income from inflation index-linked bonds[322]. - Net investment income dropped by 21.0% to $224.7 million in Q3 2025 compared to $284.3 million in Q3 2024, primarily due to a decrease in invested assets following the Fortitude Re reinsurance transaction[389]. - Net investment income grew by 19.1% to $36.2 million in Q3 2025, up from $30.4 million in Q3 2024, primarily due to higher income from inflation index-linked bonds[362][367]. Policy Benefits and Claims - Policy benefits for Q3 2025 totaled $1,849 million, a slight decrease of 0.8% from Q3 2024, while year-to-date policy benefits increased by 2.3% to $5,755 million[317]. - The overall benefits experience was unfavorable in Q3 2025, with policy benefits totaling $1,048.1 million, a slight increase of 0.2% from Q3 2024[335]. - The benefit ratio for Group Disability was 61.3% in Q3 2025, up from 59.1% in Q3 2024, indicating less favorable performance[337]. - The benefit ratio for Group Life was 66.0% in Q3 2025, compared to 65.0% in Q3 2024, reflecting higher average claim sizes[342]. - The benefit ratio for Colonial Life was 48.2% in Q3 2025, compared to 47.6% in Q3 2024, indicating less favorable benefit experience[381]. Sales and Premium Growth - Premium income growth was driven by higher sales and in-force block growth, despite declines in the Closed Block segment due to reinsurance transactions[320]. - Unum International segment sales increased by 30.1% in Q3 2025, reaching $49.7 million compared to $38.2 million in Q3 2024[329]. - Colonial Life segment sales grew by 3.1% in Q3 2025, totaling $124.6 million, compared to $120.9 million in Q3 2024[329]. - Total sales for the third quarter of 2025 were $179.1 million, a 16.1% increase from $154.3 million in the same period of 2024[351]. - Sales in the core market (less than 1,000 employees) increased by 9.3% to $76.4 million in Q3 2025 compared to $69.9 million in Q3 2024, contributing to overall commercial sector growth[383]. Operational Efficiency and Strategy - The company plans to enhance digital capabilities and technology to improve customer experience and operational efficiency in 2025[353]. - The company plans to focus on scaling its business and broadening its product portfolio in 2025, aiming to improve customer retention and drive growth[375]. - The company anticipates a slight increase in the operating expense ratio as it continues to invest in its people and capabilities[355]. - The other expense ratio rose in Q3 2025 compared to Q3 2024, primarily due to operational investments in the business[370]. Reinsurance and Financial Transactions - The Fortitude Re reinsurance transaction resulted in a net gain of $137.6 million in Q3 2025 but a net loss of $46.8 million for the first nine months of 2025, alongside a $19.1 million loss on sales of fixed maturity securities[323]. - A reinsurance agreement with Fortitude Re was entered to cede a portion of the individual disability business, affecting future income[358]. - The company transferred fixed maturity securities valued at $3,230.1 million to Fortitude Re, resulting in a net gain of $137.6 million for Q3 2025[404]. - An extraordinary dividend of $630 million was paid to Unum Group, funded by the sale of fixed maturity securities with a fair value of $81.8 million[405]. Debt and Capital Management - As of September 30, 2025, the long-term debt balance was $3,470.8 million, and short-term debt was $274.9 million[442]. - The company repurchased 10.3 million shares at a cost of $750.0 million during the nine months ended September 30, 2025[431]. - The board of directors authorized a repurchase program with an authorized amount of $1,000 million, with $550 million and $706.8 million spent under the previous programs[432]. - Dividends paid to stockholders during the first nine months of 2025 totaled $228.9 million, up from $219.3 million in 2024[461]. Ratings and Regulatory Compliance - The financial strength ratings for all traditional insurance subsidiaries remain stable, with ratings of 'A' from AM Best and 'A2' from Moody's[469]. - Fitch revised its outlook for the company to stable from positive in September 2025, reflecting earnings trends and expected capital normalization[469]. - The RBC ratios for U.S. insurance subsidiaries were significantly above the level that would require state regulatory action as of September 30, 2025[436]. - A downgrade in financial strength ratings could adversely affect relationships with distributors and new sales[467].

Financial Position - As of September 30, 2025, ProAssurance held cash and liquid investments of approximately $125 million outside its insurance subsidiaries, with an additional $125 million in permitted borrowings available under its Revolving Credit Agreement[170]. - As of September 30, 2025, the total carrying value of investments was $4,437,855,000, an increase from $4,367,427,000 as of December 31, 2024, representing a growth of approximately 1.6%[189]. - The outstanding debt as of September 30, 2025, totaled $422,783,000, slightly decreasing from $426,476,000 as of December 31, 2024[197]. - The company has $175 million available for use through its Revolving Credit Agreement as of October 30, 2025, providing additional liquidity options[192]. - Premiums receivable amounted to approximately $256 million, net of an allowance for expected credit losses of about $8 million, as of September 30, 2025[326]. Operating Performance - For the nine months ended September 30, 2025, net cash provided by operating activities was $(12,476) thousand, a decrease of $1,999 thousand compared to $(10,477) thousand for the same period in 2024[171]. - The decrease in operating cash flows was primarily due to an increase in cash paid for operating expenses of $8.9 million and a decrease in net premium receipts of $19.8 million[173]. - Total revenues decreased by $5.7 million (2.0%) to $279.6 million for the three months ended September 30, 2025, compared to $285.3 million in 2024[201]. - Net investment result increased by $3.1 million (7.5%) to $45.2 million for the three months ended September 30, 2025, compared to $42.0 million in 2024[204]. - Net income decreased by $15.0 million (91.4%) to $1.4 million for the three months ended September 30, 2025, compared to $16.4 million in 2024[201]. Underwriting Results - The combined ratio increased by 9.1 percentage points to 114.7% for the three months ended September 30, 2025, compared to 105.6% in 2024[201]. - The consolidated current accident year net loss ratio for the three months ended September 30, 2025, was 81.3%, a slight decrease of 0.2 percentage points from 81.5% in 2024[214]. - The net loss ratio for the nine months ended September 30, 2025, is 76.4%, down 0.6 percentage points from 76.6% in the same period of 2024[229]. - The net loss ratio for the Specialty P&C segment in Q3 2025 is 82.6%, a decrease of 1.8 percentage points from 72.2% in Q3 2024[229]. - The current accident year net loss ratio for Q3 2025 is 81.3%, a decrease of 0.2 percentage points from Q3 2024's 81.5%[228]. Investment Performance - The average rating of available-for-sale fixed maturity securities was A+, with 99% rated, indicating a strong credit quality in the investment portfolio[190]. - The company anticipates that between $90 million and $170 million of its portfolio will mature each quarter over the next twelve months, enhancing liquidity for cash flow requirements[192]. - The total fair value of fixed maturities, available-for-sale, was $3,929 million, an increase from $3,803 million at the end of 2024, reflecting a growth of approximately 3.3%[319]. - The corporate debt segment showed a fair value of $1,868 million as of September 30, 2025, compared to $1,832 million at December 31, 2024, indicating a growth of about 2.0%[319]. - The company recognized $1.3 million of other net investment gains in Q3 2025, driven by unrealized holding gains from equity investments[304]. Tax and Regulatory Matters - The OBBBA signed into law on July 4, 2025, included extensions and modifications to various tax provisions, but did not materially impact the company's effective tax rate[168]. - The effective tax rate for the nine months ended September 30, 2025, was 31.1%, significantly higher than the 17.5% for the same period in 2024, due to discrete items impacting the rate[313]. - The projected annual effective tax rate for 2025 is 25.2%, up from 17.5% in 2024, before considering discrete items[221]. - The tax impact of transaction-related costs for the three and nine months ended September 30, 2025, included a benefit of $555 thousand and $1,491 thousand, respectively, related to the proposed merger transaction[312]. - The company has made a 953(d) election under the U.S. Internal Revenue Code for its Cayman Islands reinsurance subsidiaries, subjecting them to U.S. federal income tax[310]. Segment Performance - The Specialty P&C segment's current accident year net loss ratio increased to 83.2% for the three months ended September 30, 2025, up 0.5 percentage points from 82.7% in 2024[214]. - Non-core operations reported an underwriting loss of $3.4 million for the three months ended September 30, 2025, compared to an underwriting income of $0.5 million in 2024[227]. - The underwriting expense ratio for the Specialty P&C segment was 28.2% for the three months ended September 30, 2025, an increase of 0.7 percentage points from 2024, while the nine-month ratio decreased by 0.4 percentage points to 27.0%[261]. - The retention rate for Medical Professional Liability (MPL) was 85% for the three months ended September 30, 2025, compared to 84% in 2024[243]. - The company retained thirteen of the sixteen workers' compensation alternative market programs that were up for renewal during the nine months ended September 30, 2025[268].

Revenue Performance - Total revenue for fiscal 2026 first quarter was $107.3 million, up 21.4% year-over-year from $88.4 million[4] - North America revenue increased by 24.7% to $52.6 million, while international revenue rose by 18.3% to $54.7 million[4] - Total revenue for the first quarter of fiscal year 2026 was $107.32 million, a 21.4% increase from $88.43 million in the same period last year[34] - Full year revenue guidance is projected between $440 million and $460 million[18] Profitability Metrics - GAAP gross margin improved to 33.2%, up from 22.4% in the prior year, representing an increase of 1,080 basis points[5] - Non-GAAP gross margin also increased to $36.29 million (33.8% of revenue) from $20.50 million (23.2% of revenue) year-over-year[31] - GAAP net income for the quarter was $162, a significant recovery from a net loss of $11.88 million in the same quarter last year[31] - Non-GAAP net income was $5.52 million (5.1% of revenue), compared to a net loss of $11.13 million (12.6% of revenue) in the previous year[31] - Non-GAAP operating income for the quarter was $7.9 million, compared to a non-GAAP operating loss of $(9.5) million in the prior year, an increase of $17.4 million[9] - Adjusted EBITDA for the quarter was $9.1 million, a significant increase of $16.8 million from $(7.7) million in the prior year[12] - Adjusted EBITDA for the quarter was $9.11 million (8.5% of revenue), a turnaround from an adjusted loss of $7.69 million (8.7% of revenue) in the prior year[31] Expenses Management - Total operating expenses decreased by 5.5% to $30.5 million from $35.4 million in the prior year[6] - Research and development expenses decreased to $7.10 million (6.6% of revenue) from $10.41 million (11.8% of revenue) year-over-year[31] - Selling and administrative expenses decreased to $23.38 million (21.8% of revenue) from $24.95 million (28.2% of revenue) in the same quarter last year[31] Cash and Assets - Cash and cash equivalents as of September 26, 2025, were $64.8 million, up from $59.7 million as of June 27, 2025[13] - Total current assets increased to $474.54 million from $463.58 million in the previous quarter[26] Liabilities - Total liabilities rose to $379.68 million from $370.11 million in the previous quarter, with long-term debt increasing to $102.04 million from $68.97 million[26] Product Development - The company launched the Aprisa LTE 5G router solution, expanding its product offerings in the Private Networks segment[8]

Financial Performance - Revenue for Q3 2025 was $17.4 million, an increase of 18% year-over-year[6] - Annual Contract Value (ACV) plus royalties reached $74.9 million, up 24% year-over-year[6] - Remaining Performance Obligations (RPO) totaled $104.7 million, a 34% increase year-over-year[6] - Non-GAAP operating loss for Q3 2025 was $3.5 million, compared to a loss of $3.3 million in Q3 2024[6] - Net loss for Q3 2025 was $9.0 million, or $0.21 per share[6] - Non-GAAP free cash flow was positive at $2.5 million, representing 14% of revenue[6] - Estimated revenue for Q4 2025 is projected to be between $18.4 million and $18.8 million[7] - Full year 2025 revenue guidance is updated to between $68.8 million and $69.2 million[7] - Net loss for the nine months ended September 30, 2025, was $26,242 million, slightly higher than the $25,434 million loss in the same period of 2024[20] - Free cash flow for Q3 2025 was $2,471 million, compared to $1,093 million in Q3 2024, indicating a growth of 126%[32] - Net loss for Q3 2025 was $8,991 million, compared to a net loss of $7,687 million in Q3 2024, representing an increase in losses of 17%[30] - Non-GAAP net loss for the nine months ended September 30, 2025, was $11,826 million, down from $13,026 million in the same period of 2024, a decrease of 9%[30] Assets and Liabilities - Total assets increased to $107,737 million as of September 30, 2025, compared to $106,135 million on December 31, 2024, reflecting a growth of 1.51%[18] - Current liabilities rose to $66,772 million, up from $59,282 million, marking an increase of 12.56%[18] - Stockholders' deficit increased to $(11,449) million as of September 30, 2025, compared to $(1,188) million at the end of 2024, indicating a deterioration in equity position[18] Profitability Metrics - Gross profit for Q3 2025 was $15,642 million, up from $13,252 million in Q3 2024, representing a growth of 18%[30] - Non-GAAP gross profit for the nine months ended September 30, 2025, reached $46,223 million, compared to $38,594 million for the same period in 2024, an increase of 20%[30] - The company reported a gross margin of 90% for both Q3 2025 and Q3 2024, indicating stable profitability[30] Expenses - Research and development expenses for Q3 2025 were $12,648 million, compared to $11,923 million in Q3 2024, reflecting a rise of 6%[30] - Sales and marketing expenses increased to $6,850 million in Q3 2025 from $4,962 million in Q3 2024, marking a significant increase of 38%[30] - Non-GAAP research and development expenses for the nine months ended September 30, 2025, were $30,357 million, up from $27,645 million in 2024, an increase of 10%[30] Strategic Initiatives - Arteris expanded partnerships with companies like Altera and AMD, enhancing its product offerings[6] - The company joined the Ultra Accelerator Link Consortium (UALink) to support AI data movement in chiplets and SoCs[6] Performance Indicators - Annual Contract Value (ACV) metrics are used to assess the total fixed fees under customer agreements, indicating future revenue potential[26] - Confirmed Design Starts are tracked to evaluate customer activity in new semiconductor designs, serving as a growth indicator for future royalty revenues[27] - Remaining Performance Obligations (RPO) reached a significant level, representing contracted future revenue not yet recognized[28] - Non-GAAP net loss for the period provides a clearer view of operational performance, excluding stock-based compensation and amortization of acquired intangible assets[22] - The weighted-average shares used in computing net loss per share increased to 42,743,518 in Q3 2025 from 39,295,743 in Q3 2024, reflecting a growth of 6%[30]

Company Information - Jack Henry & Associates, Inc. reported deconversion revenue for the fiscal first quarter ended September 30, 2025[5] - The company is listed on the Nasdaq Global Select Market under the ticker symbol JKHY[3] - The address of the principal executive offices is 663 Highway 60, P.O. Box 807, Monett, MO 65708[1] - The Chief Financial Officer and Treasurer is Mimi L. Carsley, who signed the report[8] Financial Reporting - The press release regarding financial results was issued on October 28, 2025[5] - The fiscal first quarter results are part of the company's ongoing financial disclosures[5] - The report complies with the requirements of the Securities Exchange Act of 1934[8] - The document includes an interactive data file as part of its exhibits[6] Company Status - The company has not indicated any changes in its status as an emerging growth company[4] - No specific financial figures or performance metrics were detailed in the provided content[5]

Financial Performance - Comparable RevPAR for all hotels decreased 1.5% to $128 during the quarter, driven by a 2.2% decrease in Comparable ADR and a 0.7% increase in Comparable Occupancy[5]. - Net loss attributable to common stockholders was $(69.0) million or $(11.35) per diluted share for the quarter[5]. - Adjusted EBITDAre was $45.4 million for the quarter, while Comparable Hotel EBITDA was $68.9 million, reflecting a growth rate of 2.0% over the prior year quarter[5]. - Total hotel revenue for the three months ended September 30, 2025, was $265.676 million, a decrease of 4.9% compared to $276.018 million for the same period in 2024[25]. - Net income attributable to common stockholders for the three months ended September 30, 2025, was a loss of $69.001 million, compared to a loss of $63.151 million in the same period of 2024[25]. - Operating income for the nine months ended September 30, 2025, was $123.047 million, down from $308.167 million for the same period in 2024[25]. - Net income for the three months ended September 30, 2025, was a loss of $62.725 million, compared to a loss of $59.128 million for the same period in 2024[27]. - EBITDA for the three months ended September 30, 2025, was $44.983 million, down from $56.502 million in the prior year, representing a decrease of approximately 20.5%[27]. - Funds from Operations (FFO) available to common stockholders for the three months ended September 30, 2025, was a loss of $43.973 million, compared to a loss of $37.150 million in 2024[29]. - Adjusted FFO per diluted share available to common stockholders for the nine months ended September 30, 2025, was $(3.13), compared to $(2.32) in the same period of 2024[29]. - Total hotel revenue for Q3 2025 was $265.675 million, a decrease of 3.75% compared to $276.019 million in Q3 2024[44]. - Hotel net income for Q3 2025 was $26.634 million, down 18.50% from $32.678 million in Q3 2024[44]. - Comparable hotel net income decreased by 59.94% to $11.115 million in Q3 2025 from $27.745 million in Q3 2024[44]. - Total hotel revenue for the nine months ended September 30, 2025, was $844.271 million, a decrease of 5.68% from $895.074 million in the same period of 2024[44]. - Hotel net income for Q3 2025 was $26,634,000, compared to $57,561,000 in Q2 2025, reflecting a decrease of about 54%[50]. - Total hotel EBITDA including amounts attributable to noncontrolling interest for Q3 2025 was $68,740,000, compared to $92,279,000 in Q2 2025[82]. Cash and Debt Management - The Company ended the quarter with cash and cash equivalents of $81.9 million and restricted cash of $166.9 million[5]. - Total loans amounted to $2.6 billion with a blended average interest rate of 8.0%, with approximately 95% of the debt being floating[6]. - The company reported a total of $140.793 million in current maturity of fixed-rate debt as of September 30, 2025[31]. - Total indebtedness as of September 30, 2025, was $2.645 billion, with a weighted average interest rate of 8.03%[31]. - The company’s net working capital is reported at $(144,269,000), indicating a negative liquidity position[73]. - Interest expense associated with hotels in receivership for the nine months ended September 30, 2025, was $29.632 million, slightly down from $29.615 million in 2024[29]. - Interest expense for the nine months ended September 30, 2025, was $211.064 million, up from $235.246 million in the same period of 2024, showing a decrease of approximately 10.3%[96]. - Interest income for the nine months ended September 30, 2025, was $(1,116,000), which may affect overall profitability[106]. Asset Management and Impairment - The company reported impairment charges of $18.374 million for the three months ended September 30, 2025, compared to no impairment charges in the same period of 2024[25]. - Total assets decreased to $3.008 billion as of September 30, 2025, down from $3.161 billion as of December 31, 2024, representing a decline of 4.8%[22]. - Total liabilities decreased to $3.308 billion as of September 30, 2025, compared to $3.373 billion as of December 31, 2024, a reduction of 1.9%[22]. - The accumulated deficit increased to $2.950 billion as of September 30, 2025, from $2.812 billion as of December 31, 2024[22]. - Total stockholders' equity (deficit) was $(548.738) million as of September 30, 2025, compared to $(419.237) million as of December 31, 2024[22]. Operational Efficiency and Initiatives - The "GRO AHT" initiative aims to drive outsized EBITDA growth through G&A Reduction, Revenue Maximization, and Operational Efficiency[4]. - The company continues to focus on market expansion and optimizing hotel performance across various regions[58]. - The company is focusing on market expansion and improving operational efficiency to enhance future performance[61]. - Future outlook includes continued focus on market expansion and potential acquisitions to enhance portfolio performance and revenue growth[111]. Regional Performance - The company operates 70 hotel properties as of September 30, 2025, which were included in the comparable information[50]. - In the Atlanta, GA area, RevPAR increased by 1.4% to $134.35 from $132.52 in the same period last year[54]. - The New York/New Jersey metro area saw a significant RevPAR increase of 10.7%, reaching $116.83 compared to $105.56 in 2024[54]. - The Philadelphia, PA area experienced a RevPAR increase of 13.2%, with figures rising to $133.67 from $118.04[54]. - The San Diego, CA area reported a RevPAR decline of 12.7%, dropping to $157.32 from $180.15[54]. - The Miami, FL metro area achieved a RevPAR of $177.53, reflecting a 3.8% increase compared to $170.98 in the previous year[56]. - The Houston, TX area reported a RevPAR of $112.33, which is a 5.4% increase from $106.58 in 2024[56]. - The Atlanta, GA area reported hotel EBITDA of $14,904,000 for 2025, representing 6.2% of the total, with a year-over-year increase of 11.0% from $13,223,000 in 2024[69]. - The Washington D.C. - MD - VA area reported hotel EBITDA of $38,716,000, which is 16.2% of the total, showing a decrease of 5.0% from $40,750,000 in 2024[69]. Future Outlook - The company anticipates benefiting from short-term interest rates coming down due to its high percentage of floating-rate debt[13]. - The anticipated capital expenditures for 2025 include significant investments in hotels, with a total of 4 projects expected to incur capital expenditures in the fourth quarter[76]. - Future outlook indicates a focus on improving hotel EBITDA and managing interest expenses effectively[79].

Financial Performance - Increased 2025 AFFO guidance by $0.06 to a range of $1.30 to $1.32 per diluted share[1] - Revenue growth of 24% from Q3 2024 to Q3 2025[5] - Net income attributable to common shareholders was $3.8 million, or $0.13 per diluted share[5] - Funds from Operations (FFO) of $11.0 million, or $0.34 per diluted share[5] - Adjusted Funds from Operations (AFFO) of $10.8 million, or $0.33 per diluted share[5] - Total revenues for the three months ended September 30, 2025, were $24,326,000, an increase of 23.4% compared to $19,667,000 for the same period in 2024[31] - Net income attributable to common stockholders for the three months ended September 30, 2025, was $3,810,000, compared to $1,071,000 for the same period in 2024, representing a 254.3% increase[31] - Funds from Operations (FFO) for the three months ended September 30, 2025, were $10,964,000, with FFO per common share of $0.34[36] - Adjusted Funds from Operations (AFFO) for the three months ended September 30, 2025, were $10,765,000, with AFFO per common share of $0.33[36] - The company experienced a net income before income tax expense of $4,889,000 for the three months ended September 30, 2025, compared to $1,378,000 for the same period in 2024[31] Property and Asset Management - Company acquired 47 USPS properties for $42.3 million at a weighted average capitalization rate of 7.7%[5] - Property portfolio was 99.8% occupied, with a weighted average rental rate of $11.62 per leasable square foot[4] - The company owns and manages over 2,200 properties leased primarily to the USPS, reflecting its strong market position[28] Financial Position - As of September 30, 2025, net debt was approximately $347 million with a weighted average interest rate of 4.37%[12] - Total assets as of September 30, 2025, were $735,190,000, an increase from $646,818,000 as of December 31, 2024[34] - Total liabilities as of September 30, 2025, were $386,713,000, compared to $329,320,000 as of December 31, 2024, indicating a 17.4% increase[34] - Cash and cash equivalents as of September 30, 2025, were $1,902,000, slightly up from $1,799,000 as of December 31, 2024[34] Capital and Dividend - Company raised $26.0 million from ATM program during Q3 to fund acquisitions[1] - Quarterly dividend announced at $0.2425 per share, equating to $0.97 on an annualized basis[14] - The company reported a total of 24,627,866 weighted average common shares outstanding for the three months ended September 30, 2025[31]