Financial Performance - XDEMVY generated $118.7 million in net product sales during Q3 2025, representing a 147% year-over-year increase[199]. - For the three months ended September 30, 2025, product sales reached $118.7 million, a significant increase from $48.1 million in the same period of 2024, driven by approximately 103,000 bottles of XDEMVY delivered to patients compared to 41,400 bottles in the prior year[218]. - Total revenues for the nine months ended September 30, 2025, were $299.7 million, compared to $116.5 million for the same period in 2024, marking an increase of $183.1 million[225]. - The net loss for the three months ended September 30, 2025, was $12.6 million, a decrease from a net loss of $23.4 million in the same period of 2024, reflecting a reduction of $10.8 million[217]. - The company has incurred significant net operating losses since inception, with net losses of $58.0 million and $92.4 million for the nine months ended September 30, 2025, and 2024, respectively[210]. - The accumulated deficit as of September 30, 2025, was $418.3 million, up from $360.2 million as of December 31, 2024[240]. Market Opportunity - Approximately 25 million people in the U.S. suffer from Demodex blepharitis, indicating a significant market opportunity for XDEMVY[191]. - More than 90% of commercial, Medicare, and Medicaid lives are covered for XDEMVY, leading to a gross-to-net discount of 44.7%[199]. Product Development and Trials - The Ersa Trial showed statistically significant improvements in Meibomian Gland Secretion Score and the number of glands secreting normal liquid[197]. - TP-04 demonstrated statistically significant improvements in inflammatory lesions and Investigator's Global Assessment score in the Galatea Trial[201]. - TP-05 showed statistical significance in tick mortality compared to vehicle in the Carpo Trial, with a p-value of <0.001[203]. - A Phase 2 study for TP-04 is expected to initiate in December 2025, with topline results anticipated by year-end 2026[201]. - European regulatory submission for a preservative-free formulation of XDEMVY is expected in 2026, with approval anticipated in 2027[205]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $133.2 million, up from $73.3 million in the same period of 2024, an increase of $59.9 million[217]. - Research and development expenses increased to $16.3 million for the three months ended September 30, 2025, from $12.1 million in the same period of 2024, primarily due to increased costs associated with the TP-04 program and personnel-related expenses[221]. - Selling, general and administrative expenses rose to $108.6 million for the three months ended September 30, 2025, compared to $57.9 million in the same period of 2024, an increase of $50.7 million driven by higher marketing and personnel costs[222]. - Research and development expenses increased by $9.8 million to $46.3 million for the nine months ended September 30, 2025, compared to $36.5 million in the prior year, driven by increased payroll and early-stage program costs[229]. - Selling, general and administrative expenses rose by $128.4 million to $256.5 million for the nine months ended September 30, 2025, primarily due to increased payroll, marketing costs, and variable costs associated with commercial expansion for XDEMVY[230]. Cash and Financing - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $401.8 million[214]. - The company incurred a net cash used in operating activities of $31.8 million for the nine months ended September 30, 2025, primarily due to a net loss of $58.0 million[249]. - The company received approximately $134.8 million in net proceeds from a follow-on public offering completed in March 2025, selling 2,808,988 shares at $44.50 per share[235]. - Total proceeds from the China Out-License amounted to $86.1 million, including $15.0 million of initial consideration and $67.5 million for milestone achievements[236]. - The company has the potential to receive up to $120.0 million in additional consideration from GrandPharma based on future TP-03 events and sales milestones[237]. - The 2024 Credit Facility allows for an additional $50.0 million draw, contingent on achieving certain sales milestones, with a maturity date in April 2029[238]. - The company reported a net increase in cash, cash equivalents, and restricted cash of $17.9 million for the nine months ended September 30, 2025, compared to a decrease of $48.7 million in the prior year[248]. - The company had $75.0 million of debt principal outstanding as of September 30, 2025, with interest accruing at a floating rate based on the secured overnight financing rate (SOFR) plus a margin of 6.75% per annum[264]. Other Considerations - The company believes that inflation, interest rate changes, and foreign currency exchange rate fluctuations did not have a significant impact on its results of operations for the periods presented[265]. - The company has not recorded any liabilities for indemnification rights and agreements as of September 30, 2025, as the fair value is considered minimal[261].

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 AND EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO ______ Commission file number 001-14775 DMC GLOBAL INC. (Exact name of Registrant as Specified in its Charter) Delaware 84-0608431 (State of Incorporation or Organiza ...

Financial Performance - Total combined company revenue for Q3 2025 was $46.2 million, with revenue from continuing operations at $19.6 million, down 11% year-over-year[6]. - Consumables revenue decreased to $8.7 million, down 17% year-over-year, while instruments revenue was $5.1 million, down 3% year-over-year[8]. - Total revenue for Q3 2025 was $19,552 million, a decrease of 11% compared to $22,086 million in Q3 2024[22]. - Product revenue decreased to $13,800 million in Q3 2025 from $15,779 million in Q3 2024, representing a decline of 12.5%[22]. - Revenue for Q3 2025 was $26,693, an increase of 16% compared to $22,884 in Q3 2024[27]. - Revenue for Q3 2025 was $46,245 million, a 2.8% increase from $44,970 million in Q3 2024[32]. Profitability - The net loss for Q3 2025 was $31.7 million, a 45% increase from the net loss of $21.9 million in Q3 2024[8]. - Adjusted EBITDA for Q3 2025 was a loss of $16.5 million, compared to a loss of $13.7 million in Q3 2024, reflecting a 21% increase in losses[8]. - Net loss from continuing operations for Q3 2025 was $31,684 million, compared to a loss of $21,919 million in Q3 2024, reflecting a 44% increase in losses[22]. - Net loss for Q3 2025 was $34,687 million, compared to a net loss of $26,938 million in Q3 2024, reflecting a 28.5% increase in losses[32]. - Adjusted EBITDA for Q3 2025 was $(16,649) million, compared to $(14,490) million in Q3 2024, indicating a worsening of 14.9%[35]. Expenses - Operating expenses for Q3 2025 were $42.4 million, an increase of 9% compared to Q3 2024, including $9.4 million in restructuring charges[8]. - Total expenses for Q3 2025 were $29,696, compared to $27,903 in Q3 2024, representing a 6.4% increase[27]. - Total expenses for Q3 2025 were $80,932 million, an increase of 12.5% compared to $71,908 million in Q3 2024[32]. - Operating expenses increased to $42,422 million in Q3 2025, compared to $38,825 million in Q3 2024, marking an increase of 4.1%[22]. - Non-GAAP operating expenses for Q3 2025 were $27,004, up from $26,320 in Q3 2024, indicating a 3% increase[24]. - Research and development (R&D) operating expenses for Q3 2025 were $6,356, a decrease of 8.4% from $6,939 in Q3 2024[24]. - Selling, general and administrative (SG&A) operating expenses for Q3 2025 were $21,373, up from $19,932 in Q3 2024, marking a 7.2% increase[24]. - Research and development expenses for Q3 2025 were $11,205 million, down from $13,156 million in Q3 2024, a decrease of 14.8%[34]. - Selling, general and administrative expenses for Q3 2025 were $35,069 million, slightly up from $34,403 million in Q3 2024[34]. - Transaction and integration expenses for Q3 2025 were $2,246 million, significantly lower than $5,079 million in Q3 2024, a decrease of 55.8%[34]. Cash and Assets - Cash and cash equivalents stood at $217.0 million as of September 30, 2025, with an expected increase to approximately $550 million upon closing the Illumina transaction in H1 2026[6]. - Cash and cash equivalents at the end of Q3 2025 were $129,418 million, down from $166,728 million at the end of 2024[18]. - Total current assets increased to $472,439 million as of September 30, 2025, compared to $375,883 million at the end of 2024, an increase of 25.7%[18]. - Total liabilities decreased slightly to $139,977 million as of September 30, 2025, from $140,623 million at the end of 2024[18]. Strategic Initiatives - The company implemented a restructuring plan expected to deliver over $40 million in annualized cost savings, fully realized by 2026[4]. - The operational restructuring plan aims to align resources with long-term strategic objectives and is expected to generate efficiencies across various functions[5]. - Standard BioTools is positioned for strategic M&A to fuel growth and deliver long-term value for shareholders, supported by a strong balance sheet and cash inflow from the Illumina transaction[3].

Financial Performance - Annualized recurring revenue (ARR) reached $838 million, a 2% increase year-over-year[4] - Total revenue for Q3 2025 was $218 million, up 2% from $214.7 million in Q3 2024[4] - Product subscriptions revenue was $210 million, reflecting a 2% year-over-year growth[5] - Total revenue for Q3 2025 was $217.96 million, a slight increase from $214.65 million in Q3 2024, representing a year-over-year growth of 1.1%[40] - Product subscriptions revenue reached $210.15 million in Q3 2025, compared to $205.59 million in Q3 2024, indicating a growth of 2.5%[40] - Net income for Q3 2025 was $9.81 million, down from $15.41 million in Q3 2024, reflecting a decrease of 36.5%[40] - Non-GAAP income from operations for Q3 2025 was $36.9 million, compared to $44 million in Q3 2024[5] - GAAP operating income was $5.9 million, down from $12.8 million in the same quarter last year[5] - GAAP net income for Q3 2025 was $9,809,000, a decrease of 36.5% compared to $15,410,000 in Q3 2024[47] - Adjusted EBITDA for Q3 2025 was $43,514,000, down 13.1% from $50,083,000 in Q3 2024[47] - Non-GAAP total gross profit for Q3 2025 was $159,857,000, slightly up from $159,048,000 in Q3 2024, resulting in a non-GAAP gross margin of 73%[44] - Non-GAAP gross profit for product subscriptions in Q3 2025 was $158,238,000, compared to $155,914,000 in Q3 2024, with a non-GAAP gross margin of 75%[44] Cash Flow and Liquidity - Free cash flow for the quarter was $30 million, down from $38.5 million in Q3 2024[5] - Free cash flow for Q3 2025 was $30,111,000, a decline of 21.7% compared to $38,502,000 in Q3 2024[48] - Cash flows from operating activities for the nine months ended September 30, 2025, totaled $116,250,000, an increase of 7.5% from $107,897,000 in the same period of 2024[42] - The company’s cash, cash equivalents, and restricted cash at the end of Q3 2025 were $130,613,000, a decrease from $230,108,000 at the end of Q3 2024[42] - Anticipated net cash provided by operating activities for full-year 2025 is projected to be between $149,000 and $159,000[51] - Anticipated free cash flow for full-year 2025 is expected to be between $125,000 and $135,000[51] Strategic Developments - Rapid7 announced a strategic expansion into the UAE to support digital transformation and cyber resilience goals[10] - New AI-generated risk intelligence capabilities were introduced as part of the Command Platform, enhancing remediation efforts[10] Management Changes - Rafe Brown was appointed as the new CFO, effective December 1, 2025, bringing extensive industry experience[2] Balance Sheet - Total assets as of September 30, 2025, were $1.67 billion, a slight increase from $1.65 billion at the end of 2024[38] - Total liabilities decreased from $1.63 billion at the end of 2024 to $1.54 billion as of September 30, 2025[38] - The company’s total stockholders' equity increased significantly from $17.71 million at the end of 2024 to $127.22 million as of September 30, 2025[38] - The company reported a total of 64.97 million weighted-average common shares outstanding for Q3 2025, compared to 62.90 million in Q3 2024[40] Future Projections and Risks - The company anticipates Q4 2025 revenue between $214 million and $216 million, with year-over-year growth expected to be between (1)% and 0%[8] - The company anticipates potential risks including macroeconomic uncertainty and competition, which could impact future performance[35] - Anticipated GAAP net loss for Q4 2025 is projected between $9,000 and $4,000, with non-GAAP net income expected between $27,000 and $32,000[50] - Anticipated non-GAAP net income per share for full-year 2025 is estimated to be between $2.02 and $2.09[50] Expenses - Stock-based compensation expense for the nine months ended September 30, 2025, was $81,059,000, slightly up from $80,549,000 in the same period of 2024[44] - Stock-based compensation expense for Q3 2025 was $26,327,000, slightly up from $25,738,000 in Q3 2024[47] - Amortization of intangible assets for Q3 2025 was $8,861,000, compared to $8,520,000 in Q3 2024, reflecting ongoing investment in intangible assets[47] - Interest income for Q3 2025 was $(6,167,000), compared to $(5,571,000) in Q3 2024, indicating an increase in interest expenses[47] Accounts Receivable - The company reported a decrease in accounts receivable of $8,419,000 in Q3 2025 compared to an increase of $2,442,000 in Q3 2024[42]

Financial Performance - Revenue for Q3 2025 increased by 10% to $169.9 million compared to $153.9 million in Q3 2024[3] - GAAP net income for Q3 2025 was $50.3 million, or $1.39 per diluted share, up 9% from $46.2 million, or $1.24 per diluted share in Q3 2024[6] - Non-GAAP net income for Q3 2025 was $67.4 million, or $1.86 per diluted share, compared to $58.0 million, or $1.56 per diluted share in Q3 2024[6] - Adjusted EBITDA for Q3 2025 increased by 19% to $82.6 million, representing 49% of revenues[7] - Operating cash flow for Q3 2025 rose by 48% to $90.4 million, accounting for 53% of revenues[8] - Full year 2025 revenue guidance raised to $665.8 million to $667.8 million, reflecting a 10% growth over 2024[12] - Fourth quarter 2025 revenue expected to be between $172.0 million and $174.0 million, indicating 8% to 9% growth year-over-year[11] - Revenues for Q3 2025 reached $169,882 million, a 10.5% increase from $153,867 million in Q3 2024[27] - Gross profit for the nine months ended September 30, 2025, was $408,242 million, up from $365,935 million in the same period of 2024, reflecting a growth of 11.5%[27] - Net income for Q3 2025 was $50,346 million, compared to $46,212 million in Q3 2024, representing an increase of 4.9%[27] - Adjusted EBITDA for Q3 2025 was $82,600 million, which is 49% of revenues, compared to 45% in Q3 2024[33] - Cash flow from operating activities for the nine months ended September 30, 2025, was $233,741 million, compared to $196,372 million in 2024, indicating a growth of 19%[31] - GAAP revenue for the three months ended September 30, 2025, was $169,882 million, representing a 10% growth compared to the same quarter of the prior year[39] - Non-GAAP calculated current billings for the three months ended September 30, 2025, were $186,387 million, reflecting an 11% growth year-over-year[39] - GAAP net income for the nine months ended September 30, 2025, was $145,170 million, an increase from $129,715 million in the same period of 2024[35] - Non-GAAP net income for the nine months ended September 30, 2025, reached $190,100 million, compared to $169,621 million in the prior year[35] - Non-GAAP gross profit for the three months ended September 30, 2025, was $144,895 million, up from $127,821 million in the same quarter of 2024[35] - Non-GAAP operating expenses for the nine months ended September 30, 2025, totaled $195,054 million, compared to $177,599 million in the same period of 2024[35] - Non-GAAP free cash flows for the nine months ended September 30, 2025, were $229,475 million, an increase from $189,875 million in the same period of 2024[37] - GAAP income from operations for the three months ended September 30, 2025, was $59,955 million, compared to $44,954 million in the same quarter of 2024[35] - Basic GAAP net income per share for the nine months ended September 30, 2025, was $4.00, up from $3.52 in the same period of 2024[35] - Diluted non-GAAP net income per share for the nine months ended September 30, 2025, was $5.20, compared to $4.53 in the prior year[35] Operational Developments - Qualys received FedRAMP High Authorization for its GovCloud Platform, enhancing its capabilities for federal agencies[15] - The company launched a marketplace of AI-powered agents to improve cyber risk operations[15] - May Mitchell appointed as Chief Marketing Officer to lead global marketing strategy[15] Asset and Equity Growth - Total assets as of September 30, 2025, were $1,031,989 million, an increase from $973,537 million at the end of 2024[29] - The company’s total stockholders' equity increased to $529,403 million as of September 30, 2025, up from $477,116 million at the end of 2024[29] Expense Management - Total operating expenses for the nine months ended September 30, 2025, were $245,125 million, an increase from $228,152 million in 2024, marking a rise of 7.4%[27] - The company reported a net cash used in investing activities of $97,323 million for the nine months ended September 30, 2025, compared to $59,509 million in 2024[31]

Revenue Performance - Total revenue for Q3 2025 was $27.4 million, representing a 30% increase compared to $21.1 million in Q3 2024[4] - RNS® System revenue reached $22.6 million, reflecting a 31% growth year-over-year[5] - The company increased its full-year 2025 revenue guidance to between $97 million and $98 million, indicating a growth of 21% to 23% compared to $79.9 million in 2024[14] Profitability and Expenses - Gross margin improved to 77.4%, up from 73.2% in Q3 2024, driven by a favorable product mix and manufacturing efficiencies[6] - Operating expenses for Q3 2025 totaled $23.8 million, compared to $19.7 million in Q3 2024[6] - Net loss for Q3 2025 was $3.5 million, an improvement from a net loss of $5.5 million in Q3 2024[9] Cash Flow and Investments - Cash, cash equivalents, and short-term investments as of September 30, 2025, were $60.0 million, down from $62.1 million at the end of the previous quarter[10] - Cash used in operating activities for Q3 2025 was $1,944,000, slightly higher than $1,724,000 in Q3 2024, with total cash used in operating activities for the nine months at $11,512,000 compared to $13,152,000 in the prior year[22] - Cash provided by financing activities in Q3 2025 was $235,000, a decrease from $2,898,000 in Q3 2024, while total cash provided for the nine months was $18,965,000 compared to $3,479,000 in the same period of 2024[22] Accounts and Inventory Management - The number of active accounts, prescribers, and utilization reached record highs in Q3 2025[5] - The company experienced a decrease in accounts receivable by $1,383,000 in Q3 2025, compared to a decrease of $318,000 in Q3 2024, with total changes for the nine months showing a decrease of $2,087,000 versus an increase of $753,000 in the prior year[22] - Inventory write-downs for Q3 2025 were $47,000, down from $107,000 in Q3 2024, with total write-downs for the nine months at $140,000 compared to $196,000 in the same period of 2024[22] Future Plans and Developments - The company plans to submit the NAUTILUS PMA Supplement to the FDA for IGE indication expansion by year-end 2025[1] - NeuroPace submitted Seizure ID, an AI application aimed at improving clinical outcomes, to the FDA for approval[5] Non-Cash and Other Financial Metrics - The company reported stock-based compensation expense of $2,628,000 in Q3 2025, slightly up from $2,591,000 in Q3 2024, with total expenses for the nine months at $8,482,000 compared to $7,679,000 in the previous year[22] - The company incurred a non-cash interest expense of $73,000 in Q3 2025, down from $203,000 in Q3 2024, with total non-cash interest for the nine months at $463,000 compared to $743,000 in the previous year[22] - The company reported a gain on short-term investments of $82,000 in Q3 2025, an improvement from a loss of $219,000 in Q3 2024, with total gains for the nine months at $41,000 compared to a loss of $315,000 in the prior year[22]

Financial Performance - Total revenue for Q3 2025 was $211.0 million, an increase from $196.8 million in Q3 2024, representing a growth of approximately 6.2% year-over-year[4] - Net income for Q3 2025 was $15.9 million, compared to a net loss of $106.7 million in Q3 2024[5] - Cash, cash equivalents, and marketable securities totaled $1,687.8 million as of September 30, 2025, up from $1,139.7 million as of December 31, 2024[5] - Full-year 2025 revenue guidance has been narrowed to a range of $750 million to $800 million[6] Revenue Sources - Sephience™ generated global revenue of $19.6 million in Q3 2025, with $14.4 million from the US and $5.2 million from ex-US markets[4] - The DMD franchise revenue for Q3 2025 was $85.9 million, including $50.7 million from Translarna™ and $35.2 million from Emflaza®[4] Research and Development - GAAP R&D expense for Q3 2025 was $100.2 million, down from $161.4 million in Q3 2024[5] - Non-GAAP R&D expense for Q3 2025 was $91.0 million, compared to $152.0 million in Q3 2024[5] - The company plans to hold an R&D Day on December 2, 2025, in New York[4] - The company is conducting clinical trials for vatiquinone, with expectations regarding the design, timing, and regulatory submissions[17] Regulatory and Market Challenges - PTC is facing significant risks related to the regulatory approval and commercialization of its products, including Sephience, Translarna, and others[19] - Ongoing marketing authorization reviews for Sephience are taking place in additional markets, including Japan, with a decision expected in Q4 2025[4] - PTC's marketing authorization for Translarna in Brazil, Russia, and other regions is under scrutiny, particularly following a negative opinion from the European Commission[17] - PTC's ability to maintain regulatory approvals for its products is uncertain, with no guarantees of commercial success[19] Strategic Collaborations and Commercialization - The company is collaborating with Novartis Pharmaceuticals for the development of votoplam for Huntington's disease, with potential milestones and profit-sharing agreements in place[17] - PTC is working on the commercialization of Evrysdi, Tegsedi, and Waylivra, with expectations for sales milestones and contingent payments[17] Financial Concerns - The sufficiency of PTC's cash resources and its ability to secure financing for future operating expenses and capital expenditures is a concern[17] - The company is currently negotiating pricing, coverage, and reimbursement with third-party payors for its products, which may impact future revenue[17] - The eligible patient base and commercial potential of PTC's products are critical factors for future growth[17] - PTC does not plan to update or revise its forward-looking statements unless required by law[20]

Financial Performance - AudioEye reported record revenue of over $10.2 million for Q3 2025, a 15% increase from $8.9 million in the same period last year[4] - Adjusted EBITDA for Q3 2025 was $2.5 million, compared to $2.0 million in Q3 2024, reflecting a strong performance[4] - Revenue for Q3 2025 was $10,227,000, representing a 14.6% increase from $8,925,000 in Q3 2024[22] - Adjusted EBITDA for Q3 2025 was $2,453,000, compared to $2,030,000 in Q3 2024, marking a 20.8% increase[25] - Full-year 2025 revenue guidance has been updated to between $40.3 million and $40.4 million, indicating approximately 15% year-over-year growth at the midpoint[4] Profitability Metrics - The net loss for Q3 2025 was $0.6 million, or $(0.04) per share, an improvement from a net loss of $1.2 million, or $(0.10) per share, in the same prior year period[4] - Net loss for Q3 2025 was $554,000, an improvement compared to a net loss of $1,202,000 in Q3 2024, reflecting a 53.8% reduction in losses[22] - The company reported an adjusted earnings per diluted share of $0.19 for Q3 2025, up from $0.16 in Q3 2024[25] Customer Growth - As of September 30, 2025, Annual Recurring Revenue (ARR) increased to $38.7 million from $38.2 million as of June 30, 2025[4] - The company had approximately 123,000 customers as of September 30, 2025, an increase of 3,000 from June 30, 2025[4] Cost and Expenses - Gross profit for Q3 2025 was $7.9 million, representing 77% of total revenue, down from 80% in the same prior year period due to increased costs[4] - Gross profit for Q3 2025 was $7,915,000, up from $7,102,000 in Q3 2024, indicating an increase of 11.4%[22] - Research and development expenses for Q3 2025 were $1,118,000, slightly down from $1,151,000 in Q3 2024[22] - Selling and marketing expenses increased to $3,649,000 in Q3 2025 from $3,148,000 in Q3 2024, reflecting a 15.9% increase[22] Market Expansion - AudioEye is expanding into the European market through a strategic partnership with Creode, targeting financial services and enterprise organizations[4] Future Projections - The company aims to grow adjusted EPS and EPS annually by 30-40% over the next three years[2] - The company expects Q4 2025 revenue to be between $10.45 million and $10.6 million, with adjusted EBITDA projected at $2.7 million to $2.8 million[4] Asset and Liability Overview - Total assets as of September 30, 2025, were $30,478,000, a slight increase from $29,766,000 as of December 31, 2024[24] - Cash and cash equivalents decreased to $4,550,000 from $5,651,000, indicating a decline of 19.5%[24] - Total liabilities increased to $24,827,000 as of September 30, 2025, compared to $20,330,000 at the end of 2024, representing a 22.3% rise[24]

Financial Performance - Q3 2025 net income was $134.7 million, or $4.24 per diluted share, compared to $199.1 million, or $5.89 per diluted share in Q3 2024[1][3] - Consolidated revenue for Q3 2025 was $880.1 million, down from $962.0 million in Q3 2024, representing a decrease of 8.5%[1][3] - Ocean Transportation operating income decreased by $79.5 million, or 35.0%, to $147.4 million in Q3 2025 compared to $226.9 million in Q3 2024[2][18] - Logistics segment operating income was $13.6 million in Q3 2025, down $1.8 million, or 11.7%, from $15.4 million in Q3 2024[10][27] - Net income for the nine months ended September 30, 2025, was $301.7 million, a decrease of 13.4% compared to $348.4 million in 2024[48] - EBITDA for the nine months ended September 30, 2025, was $507.6 million, down 6.6% from $543.7 million in 2024[50] Revenue and Volume Trends - Container volume in China decreased by 12.8% year-over-year in Q3 2025, primarily due to uncertainties related to tariffs and global trade[5][17] - Total operating revenue for the nine months ended September 30, 2025, was $2,492.6 million, a decrease of $38.9 million, or 1.5%, from $2,531.5 million in 2024[44] - Logistics revenue for the nine months ended September 30, 2025, was $461.3 million, a decrease of $2.6 million, or 0.6%, from $463.9 million in 2024[30] Cash Flow and Capital Expenditures - Cash and cash equivalents decreased by $174.1 million from $266.8 million at December 31, 2024, to $92.7 million at September 30, 2025[32] - Net cash from operating activities was $370.2 million for the nine months ended September 30, 2025, down from $593.1 million in the same period of 2024, largely due to a federal tax refund received in 2024[32] - Capital expenditures totaled $258.7 million for the nine months ended September 30, 2025, compared to $184.7 million in 2024, indicating an increase of $74.0 million, or 40.0%[32] - Vessel construction expenditures increased to $141.7 million in 2025 from $39.8 million in 2024, indicating a substantial rise in capital investment[48] - Total capital expenditures, excluding vessel construction, were $117.0 million in 2025, compared to $144.9 million in 2024[48] Debt and Shareholder Returns - As of September 30, 2025, total debt decreased by $30.0 million to $370.9 million, with $331.2 million classified as long-term debt[32] - The company declared a cash dividend of $0.36 per share, payable on December 4, 2025, to shareholders of record as of November 6, 2025[33] - The company repurchased approximately 0.6 million shares for a total cost of $66.4 million during the third quarter of 2025[33] - The company repurchased $225.8 million of common stock in 2025, up from $167.4 million in 2024, reflecting a 35% increase in stock buybacks[48] Future Outlook - The company expects Q4 2025 consolidated operating income to be approximately 30% lower than the $147.5 million achieved in Q4 2024[2][11] - The company anticipates a more stable trading environment in Q4 2025 due to reduced uncertainty regarding tariffs and global trade following a recent trade deal between the U.S. and China[2][5] - For full year 2025, the company expects depreciation and amortization expense to be approximately $196 million[11][14] - Interest income for full year 2025 is expected to be around $32 million, while interest expense is projected to be approximately $7 million[12][13] Tax and Interest Payments - Income tax payments for the nine months ended September 30, 2025, were $62.5 million, compared to a refund of $85.1 million in 2024[48] - Interest paid, net of capitalized interest, was $4.4 million in 2025, a decrease from $5.3 million in 2024[48]

Revenue and Income - Total revenue for the three months ended September 28, 2025, was $292,278, representing an increase of $32,083, or 12%, compared to the same period last fiscal year[110] - Operating income increased to $28,246, a significant rise of $15,300 compared to the previous year[110] - Adjusted EBITDA for the three months ended September 28, 2025, was $72,654, compared to $62,943 for the same period in 2024, reflecting an increase of approximately 15%[126] Expenses and Costs - Location operating costs increased by $11,598, or 13%, primarily due to acquisitions of water parks and family entertainment centers[115] - Location payroll and benefit costs rose by $7,808, or 12%, driven by acquisitions and higher wages[117] - SG&A expenses increased by $534, or 2%, while as a percentage of revenues decreased from 13% to 12%[119] - Depreciation and amortization decreased by $3,788, or 10%, due to changes in estimated useful lives of fixed assets[120] - Interest expense increased by $4,727, or 10%, primarily due to the amortization of $3,300 of deferred financing costs and increased debt since Q1 fiscal 2025[121] Cash Flow and Financing - Net cash used in operating activities was $(6,408) for the three months ended September 28, 2025, a decrease of $35,821 compared to $29,413 provided in the same period of the prior year[131] - Investing activities used $315,147 in cash, significantly higher than $39,924 in the same period of the prior year, primarily due to increased acquisition activity[133] - Financing activities provided $292,671, a substantial increase from $(17,806) used in the same period of the prior year, mainly due to proceeds from the Fifteenth Amendment to the First Lien Credit Agreement[134] Acquisitions and Agreements - The Company acquired 58 existing properties for $306,000, reducing annual rent obligations and enhancing financial flexibility[108] - The Company signed a definitive agreement to acquire Raging Waters Los Angeles, expected to be completed in fiscal 2026[108] Tax and Cash Position - The effective tax rate for the quarter ended September 28, 2025, was 48%, influenced by changes in the fair value of the earnout liability and unrealizable interest limitations[123] - At September 28, 2025, the company had approximately $31,032 in available cash and cash equivalents[129] - The company plans to use available cash-on-hand to fund its share repurchase program, aimed at returning value to shareholders[128] Market Risks - An increase or decrease of 1.0% in the effective interest rate would result in a change of approximately $12,000 in interest expense over a twelve-month period[141] - The company is exposed to market risks including interest rates, credit risk, and commodity price fluctuations, which could impact its financial condition[140] Same-Store Performance - Same-store revenues remained relatively flat, with walk-in business for bowling locations contributing approximately $3,200[113]