Financial Performance - Net sales for Q4 FY 2025 increased by $13.5 million, or 4.2%, to $336.1 million compared to Q4 FY 2024, driven by a $13.3 million increase in comparable store sales [4]. - Net income for Q4 FY 2025 rose 31.0% to $11.8 million, with diluted earnings per share of $0.51, compared to $9.0 million, or $0.39 diluted earnings per share, for Q4 FY 2024 [9]. - Adjusted EBITDA for Q4 FY 2025 increased 7.7% to $24.4 million, up from $22.6 million in Q4 FY 2024 [9]. - For FY 2025, net sales increased by $89.3 million, or 7.2%, to $1.33 billion, with a 7.3% increase in daily average comparable store sales [10]. - Gross profit for FY 2025 increased by $33.1 million, or 9.1%, to $397.9 million, with gross margin improving by 50 basis points to 29.9% [11]. - Operating income for FY 2025 increased 32.0% to $62.0 million, with an operating margin of 4.7% [13]. - Net income for the year ended September 30, 2025, was $46.4 million, up 37.0% from $33.9 million in 2024 [33]. - EBITDA for the fourth quarter of fiscal 2025 increased by 17.6% to $23.5 million compared to $20.0 million in the fourth quarter of fiscal 2024 [36]. - Adjusted EBITDA for the year ended September 30, 2025, rose 17.5% to $97.9 million from $83.3 million in 2024 [37]. Cash and Assets - As of September 30, 2025, the company had $17.1 million in cash and cash equivalents and no outstanding borrowings on its revolving credit facility [16]. - Cash and cash equivalents at the end of the year increased to $17.1 million from $8.9 million, a rise of 93.5% [33]. - Total assets increased to $670.5 million in 2025 from $655.5 million in 2024, representing a growth of 2.0% [31]. - Total current liabilities decreased to $158.8 million in 2025 from $164.1 million in 2024, a reduction of 3.0% [31]. - Total stockholders' equity increased to $212.4 million in 2025, up 22.0% from $174.3 million in 2024 [31]. Expenses and Dividends - Administrative expenses for FY 2025 increased 14.6% to $44.4 million, primarily due to higher compensation and technology expenses [13]. - A quarterly cash dividend of $0.15 per common share was announced, reflecting a 25% increase over the previous dividend [17]. - Dividends to shareholders decreased to $11.0 million in 2025 from $31.9 million in 2024, a decline of 65.5% [33]. Future Plans - The company plans to open 6 to 8 new stores in FY 2026, continuing its strategy of accelerated store growth [3]. Impairment and Cash Flow - The company reported a loss on impairment of long-lived assets of $81, significantly lower than $2.1 million in 2024 [33]. - Operating cash flow for the year was $55.3 million, compared to $73.8 million in the previous year, reflecting a decrease of 25.0% [33].

Financial Performance - Total revenues for Q3 2026 were $811.2 million, representing a 16% increase year over year from $699.2 million[3] - Subscription services revenues for Q3 2026 reached $682.5 million, up 17% year over year from $580.9 million[3] - Operating income for Q3 2026 was $240.9 million, a 33% increase from $181.4 million in the same quarter last year[3] - Non-GAAP operating income for Q3 2026 was $364.9 million, up 20% from $304.0 million year over year[3] - Net income for Q3 2026 was $236.2 million, reflecting a 27% increase from $185.8 million in Q3 2025[3] - Non-GAAP net income for Q3 2026 was $345.1 million, an increase of 20% from $288.3 million year over year[3] - Total revenues for the three months ended October 31, 2025, were $811,236,000, representing a 16% increase from $699,207,000 in the same period of 2024[17] - Subscription services revenue increased to $682,498,000 for the three months ended October 31, 2025, up 17.5% from $580,850,000 in 2024[17] - Net income for the nine months ended October 31, 2025, was $664,702,000, a 28.2% increase compared to $518,513,000 for the same period in 2024[20] - Operating income for the three months ended October 31, 2025, was $240,853,000, up 32.8% from $181,353,000 in 2024[17] - Diluted net income per share for the three months ended October 31, 2025, was $1.40, compared to $1.13 in 2024, representing a 23.9% increase[17] - Non-GAAP net income for the nine months ended October 31, 2025, was $1,006,343,000, up from $802,551,000 in 2024, reflecting a growth of 25.4%[29] Cash Flow and Expenses - Cash flows from operating activities for the nine months ended October 31, 2025, totaled $1,308,378,000, compared to $1,020,507,000 in 2024, reflecting a 28.2% increase[20] - Cash, cash equivalents, and restricted cash at the end of the period were $1,662,315,000, up from $1,046,689,000 in 2024[20] - Stock-based compensation expenses for the nine months ended October 31, 2025, amounted to $354,444,000, compared to $322,146,000 in 2024, reflecting a 10% increase[20] - Net cash provided by operating activities on a GAAP basis for the three months ended October 31, 2025, was $192,787,000, compared to $164,117,000 for the same period in 2024, representing a year-over-year increase of 17.4%[26] - Non-GAAP net cash provided by operating activities for the nine months ended October 31, 2025, was $1,285,076,000, up from $1,015,347,000 in 2024, reflecting a growth of 26.5%[26] Research and Development - Research and development expenses for the three months ended October 31, 2025, were $191,883,000, an increase of 11.3% from $172,411,000 in 2024[17] - Research and development expense on a GAAP basis for the three months ended October 31, 2025, was $191,883,000, compared to $172,411,000 in 2024, reflecting an increase of 11.4%[29] Guidance and Future Outlook - Guidance for Q4 2026 includes total revenues between $807 million and $810 million, with non-GAAP fully diluted net income per share expected to be approximately $1.92[8] - The company is on track to achieve a $6 billion revenue run-rate goal by 2030[3] Product Development - Veeva AI is set to release its first agents for CRM and commercial content in early December 2025, with additional agents planned for 2026[5] - Veeva Development Cloud applications were selected as the enterprise standard by three top 20 biopharmas in Q3 2026[5] Operating Expenses and Margins - Total operating expenses for the nine months ended October 31, 2025, were $1,120,325,000, compared to $1,004,076,000 in 2024, marking a 11.6% increase[17] - Operating margin on a non-GAAP basis for the three months ended October 31, 2025, was 45.0%, compared to 43.5% in 2024, indicating an improvement of 1.5 percentage points[29] - Sales and marketing expense on a GAAP basis for the three months ended October 31, 2025, was $110,552,000, an increase from $98,695,000 in 2024, representing a growth of 12.8%[29] - Gross margin on subscription services revenues on a non-GAAP basis increased to 87.0% for the nine months ended October 31, 2025, compared to 86.2% in 2024[26]

Financial Performance - Earnings per share for Q3 2025 were $1.58, with net income of $512 million, compared to $1.48 and $489 million in Q3 2024, reflecting a 6.8% increase in EPS [4] - Sales for Q3 2025 increased by 10% to $5.6 billion, up from $5.1 billion in the prior year, with comparable store sales rising 7% [4] - For the first nine months of 2025, earnings per share were $4.61, compared to $4.53 in the same period of 2024, with net income remaining stable at $1.5 billion [5] - The operating margin for Q3 2025 was 11.6%, significantly stronger than expected, driven by effective expense control [6] - For Q4 2025, the company raised its comparable store sales forecast to 3% to 4%, with EPS guidance between $1.77 and $1.85 [8] - Full-year EPS guidance for fiscal 2025 is now projected to be between $6.38 and $6.46, including a $0.16 impact from tariff-related costs [8] Shareholder Actions - The company repurchased 1.7 million shares for $262 million during Q3 2025, part of a $2.1 billion buyback program [7] Asset and Store Growth - The total assets as of November 1, 2025, were $15.41 billion, an increase from $14.91 billion a year earlier [16] - The company operates 2,273 stores at the end of Q3 2025, up from 2,192 stores at the end of Q3 2024 [14] - The company reported a 3% increase in comparable store sales year-to-date for 2025 [5] Cash Flow and Expenses - Net cash provided by operating activities increased to $1,905,165 from $1,474,431 year-over-year [18] - Depreciation and amortization expenses rose to $374,524, compared to $329,584 in the previous year [18] - Cash used in investing activities was $618,366, up from $514,122 in the prior year [18] - Net cash used in financing activities increased to $1,955,126 from $1,481,092 year-over-year [18] - The company reported a decrease in cash, cash equivalents, and restricted cash to $4,128,135 from $4,414,658 [18] - Interest paid decreased to $55,778 from $80,316 in the previous year [18] - Income taxes paid, net, decreased to $442,751 from $546,113 year-over-year [18] - Merchandise inventory change was $(684,458), compared to $(666,886) in the prior year [18] - The company issued $18,910 in common stock related to stock plans, slightly up from $18,769 [18]

Revenue Performance - Total revenue for the first quarter reached $3.9 billion, an increase of 18% year-over-year[3] - Global Business Solutions revenue grew to $3.0 billion, up 18%, while Online Ecosystem revenue increased to $2.4 billion, up 21%[6] - Consumer revenue rose to $894 million, reflecting a 21% growth compared to the previous year[7] - Credit Karma revenue grew by 27% to $651 million, driven by strong performance in personal loans, credit cards, and auto insurance[10] - TurboTax revenue increased by 6% to $198 million, while ProTax revenue grew by 15% to $45 million[10] - The company expects full fiscal year 2026 revenue guidance of $20.997 billion to $21.186 billion, representing growth of approximately 12% to 13%[10] - The company expects revenue for the three months ending January 31, 2026, to be in the range of $4,519 million to $4,549 million[45] Income and Earnings - GAAP operating income increased to $534 million, a significant rise of 97%[3] - Non-GAAP diluted earnings per share reached $3.34, up 34% from the prior year[3] - GAAP net income for Fiscal 2026 Q1 was $446 million, while non-GAAP net income was $939 million[30] - GAAP diluted net income per share for Fiscal 2026 Q1 was $1.59, with non-GAAP diluted net income per share at $3.34[30] - Net income for the three months ended October 31, 2025, was $446 million, compared to $197 million for the same period in 2024, representing a 126% increase[41] - Projected operating income for the same period is estimated between $676 million and $691 million, with non-GAAP adjustments expected to bring it to $1,371 million to $1,386 million[45] - Diluted net income per share is forecasted to be between $1.76 and $1.81, with non-GAAP estimates ranging from $3.63 to $3.68[45] Cash Flow and Assets - Total cash provided by operating activities increased to $637 million, up from $362 million year-over-year, marking a 76% growth[41] - Net cash provided by investing activities was $1,198 million, a significant improvement from a net cash used of $188 million in the previous year[41] - Cash and cash equivalents increased from $2,884 million (July 31, 2025) to $3,506 million (October 31, 2025)[39] - Cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of the period totaled $6,943 million, down from $8,034 million a year earlier[42] - The company reported a net change in funds receivable and amounts due to customers of $(3,160) million, compared to $1,672 million in the previous year[41] Liabilities and Assets Management - Total current assets decreased from $14,107 million (July 31, 2025) to $10,421 million (October 31, 2025)[39] - Total liabilities decreased from $17,248 million (July 31, 2025) to $13,869 million (October 31, 2025)[39] - Total assets decreased from $36,958 million (July 31, 2025) to $33,191 million (October 31, 2025)[39] Shareholder Returns and Compensation - Intuit plans to repurchase $4.4 billion worth of shares, having already repurchased $851 million[10] - A quarterly dividend of $1.20 per share was approved, marking a 15% increase compared to the same period last year[10] - Share-based compensation expense for Fiscal 2026 Q1 was $543 million[30] - Share-based compensation expense for the three months ended October 31, 2025, was $543 million, an increase from $511 million in the same period last year[41] Strategic Outlook - The company plans to continue focusing on strategic acquisitions and market expansion to drive future growth[45] - The company recognized a net loss of $34 million on debt securities and other investments during the three months ended October 31, 2025[30] - Income tax effects and adjustments for Fiscal 2026 Q1 amounted to $(182) million[30]

Sales Performance - In fiscal 2025, 74.2% of NTIC's consolidated net sales, amounting to $62,488,397, were derived from ZERUST® corrosion prevention solutions, reflecting a decrease of 1.0% from fiscal 2024[30]. - NTIC's consolidated net sales from Natur-Tec® resin compounds and finished products were $21,746,077 in fiscal 2025, representing a slight decrease of 1.0% compared to fiscal 2024, accounting for 25.8% of total consolidated net sales[43]. - Sales of ZERUST® corrosion prevention solutions to the oil and gas industry totaled $7,317,704 in fiscal 2025, a decrease of 20.7% from fiscal 2024, although consistent re-orders from large customers were noted[37]. Product Offerings - NTIC's ZERUST® packaging products utilize proprietary chemical formulations that inhibit rust and corrosion, providing significant savings in labor, material, and capital expenditures compared to traditional methods[31]. - The Z-CIS® technical services system has been utilized by several major automotive companies to improve and control their corrosion management processes[36]. - Natur-Tec® resin compounds are engineered for high performance and reduced cost, allowing for processing using conventional plastic manufacturing methods[44]. - Natur-Tec® flexible film resin compounds are fully compostable and certified by organizations such as BPI and TÜV Austria, meeting international standards for compostable plastics[47]. - NTIC has developed unique corrosion inhibiting solutions for the oil and gas industry, addressing aggressive corrosion in critical infrastructure and extending service life[38]. - The introduction of products like AutoFog allows for rapid VCI saturation in large volume spaces, enhancing corrosion protection capabilities[45]. - NTIC's ZERUST® solutions for oil and gas infrastructure are tailored to customer requirements, addressing specific environmental conditions and enhancing protection against corrosion[42]. - Natur-Tec® compostable injection molding resin compounds are made with at least 90% bio-based materials, enhancing sustainability by replacing petroleum-based plastics[49]. - Natur-Bag® product line includes 15 different compostable trash bag sizes, certified fully compostable, and marketed through retail and industrial channels[50]. Market Trends - NTIC expects the U.S. market for bio-plastic solutions to continue growing due to legislation aimed at reducing single-use plastics, with a significant ban on plastic bags enacted in multiple states[54]. Research and Development - NTIC anticipates spending between $4,900,000 and $5,100,000 on research and development activities in fiscal 2026[61]. Financial Performance - NTIC had an estimated order backlog of $4,184,415 as of August 31, 2025, down from $5,837,430 as of August 31, 2024[71]. - NTIC's revenue is primarily derived from one-time purchase orders and short-term contracts, with revenue recognized upon the transfer of control of goods[298]. - The company assesses its investments in joint ventures for impairment annually, with additional evaluations performed if financial performance expectations are not met[295]. - Goodwill is tested for impairment annually, with assessments made more frequently if adverse changes in circumstances occur[300]. - NTIC utilizes the asset and liability method for accounting income taxes, recognizing deferred tax assets and liabilities based on expected future tax consequences[305][306]. - The company measures stock-based compensation costs based on the fair value of equity instruments issued, recognizing costs over the service period[304]. - NTIC's consolidated financial statements include accounts of its wholly owned subsidiaries but do not include accounts of its joint ventures[294]. - The company records trade receivables and fees for services provided to joint ventures as separate line items in its consolidated financial statements[289]. - NTIC's revenue recognition policy for joint ventures aligns with its policy for unaffiliated customers, ensuring consistency in financial reporting[290]. Workforce and Management - As of August 31, 2025, NTIC had a total of 94 employees, with 91 full-time and 3 part-time employees, including 28 in sales and marketing, 24 in research and development, 22 in administration, and 20 in production[73]. - NTIC's North American workforce is composed of 41% female employees and 31% racially or ethnically diverse individuals[74]. - The average tenure of NTIC employees is nine years, indicating a stable workforce[75]. - NTIC had only one lost time incident in both fiscal 2025 and 2024, reflecting strong safety performance[80]. - NTIC's management team has an average tenure of 17 years, suggesting experienced leadership[76]. - The company offers competitive compensation and benefits, including a 401(k) plan with matching contributions and profit-sharing options[84][85]. - NTIC provides employees with immediate eligibility for its medical plan, which has no co-pay and does not require premium contributions[86]. - Full-time employees are eligible for paid holidays and vacation time ranging from 15 to 25 days based on service length[87]. - NTIC is committed to equal opportunity and has policies in place to prevent discrimination and harassment[81][82]. - The company emphasizes health, safety, environment, and security (HSE&S) as core values and is dedicated to continuous improvement in these areas[78][79]. Joint Ventures - NTIC has established a joint venture network for approximately 30 years, participating in 15 active joint ventures across North America, Europe, and Asia[290]. - Revenue recognition for sales to joint ventures occurs when products are shipped, with fees based on either a flat fee or a percentage of sales[291][299].

EXHIBIT 99.1 Copa Holdings Reports Third-Quarter Financial Results Panama City, Panama --- November 19, 2025. Copa Holdings , S.A. (NYSE: CPA), today announced financial results for the third quarter of 2025 (3Q25), delivering another quarter of strong profitability and operational excellence. Key highlights for the quarter include: 1 Subsequent events The terms "Copa Holdings" and the "Company" refer to the consolidated entity. The financial information presented in this release, unless otherwise indicated ...

Financial Performance - Cerence generated revenue of $251.8 million in fiscal year 2025, a decrease of 24% compared to $331.5 million in fiscal year 2024[30]. - The company recorded a net loss of $18.7 million for fiscal year 2025, a significant improvement from a net loss of $588.1 million in fiscal year 2024, reflecting a 97% change[30]. - Total revenues for fiscal year 2025 were $251.8 million, a decrease of $79.7 million, or 24.0%, from $331.5 million in fiscal year 2024[203]. - License revenue for fiscal year 2025 was $140.6 million, an increase of $15.9 million, or 12.7%, from $124.7 million in fiscal year 2024, representing 55.9% of total revenue[204]. - Connected services revenue for fiscal year 2025 was $53.4 million, a decrease of $80.1 million, or 60.0%, from $133.4 million in fiscal year 2024, accounting for 21.2% of total revenue[205]. - Professional services revenue for fiscal year 2025 was $57.8 million, a decrease of $15.5 million, or 21.2%, from $73.3 million in fiscal year 2024, representing 23.0% of total revenue[206]. - Total gross profit for fiscal year 2025 was $183.1 million, a decrease of $61.1 million, or 25.0%, from $244.3 million in fiscal year 2024[212]. - Operating margin improved by 174.0 percentage points from negative 174.9% to negative 0.9%[192]. - Cash from operating activities increased by $44.0 million, or 255.7%, from $17.2 million to $61.2 million[192]. Market Presence and Partnerships - Cerence's solutions have been shipped in over 525 million automobiles to date, including over 25 million new vehicles in fiscal year 2025 alone[29]. - Approximately 52% of all cars shipped during the fiscal year ended September 30, 2025, included Cerence technologies, indicating strong market penetration[29]. - The company has signed several strategic, long-term partnership agreements with global automakers to deploy its Cerence xUI platform for future in-cabin experiences[41]. - Approximately 50% of the company's revenue in fiscal year 2025 came from major OEMs, including BMW, Mercedes-Benz, and Toyota, while the other 50% came from tier 1 suppliers like HARMAN and Bosch[52]. - Revenue distribution in fiscal year 2025 was approximately 16% from the Americas, 42% from Europe, and 42% from Asia, showcasing a geographically diverse revenue base[53]. Research and Development - Research and development expenses were approximately $123.3 million for fiscal year 2023, $121.6 million for fiscal year 2024, and $97.8 million for fiscal year 2025, indicating a focus on continued investment in AI-powered solutions[50][51]. - The company employs around 700 research and development personnel globally, emphasizing its commitment to innovation and technical expertise[50]. - The company holds 832 patents and patent applications as of September 30, 2025, providing meaningful protection for its products and technologies[65]. Strategic Plans and Restructuring - The company has implemented restructuring plans in 2024 and 2025 aimed at reducing operating expenses and positioning for profitable growth, with the 2025 Plan expected to be substantially complete by the end of Q1 fiscal year 2026[58][59]. - The company has implemented the 2025 Plan to streamline operations, which may lead to higher restructuring charges and operational disruptions[73]. - The implementation of the 2024 Plan was substantially complete by the end of the first quarter of fiscal year 2025[201]. Risks and Challenges - Supply chain disruptions, inflation, and higher interest rates have adversely affected business operations and results[71]. - The company faces intense competition in the automotive voice assistance market, with competitors including SoundHound and iFlyTek, but believes it has competitive advantages in scale and technology[47][68]. - The company faces risks related to the loss of major customers, which could materially affect business and financial condition[80]. - Pricing pressures from major OEMs could negatively impact sales and profit margins, with potential fixed price commitments for long-term contracts[76]. - Cybersecurity incidents could lead to significant reputational and financial harm, including loss of revenue and increased remediation costs[91]. - The company has faced challenges in maintaining customer relationships due to potential data privacy breaches, which could inhibit growth[89]. - The company is subject to risks related to intellectual property claims, which could result in costly litigation and affect its competitive position[120]. Financial Obligations and Debt - As of September 30, 2025, the company had $210 million of 1.50% convertible senior notes due July 1, 2028 outstanding[128]. - The company issued an aggregate principal amount of $175 million in 3.00% convertible senior notes due June 1, 2025[128]. - The company may incur additional indebtedness to meet future financing needs, which could negatively impact its financial condition[129]. - The company may not have sufficient cash flow to service its debt obligations, which could lead to defaults[130]. - Holders of the 2028 Notes have the right to require the company to repurchase their notes at a price equal to 100% of the principal amount plus accrued interest upon a fundamental change[132]. - The company may face challenges in obtaining additional financing on favorable terms, which could restrict its operational flexibility[133]. Shareholder Information - Cerence has not paid any dividends since its formation, with future dividend payments subject to board discretion and capital needs[173]. - As of November 7, 2025, there were 415 holders of record for Cerence's common stock, reflecting the company's shareholder base[172]. - The cumulative total shareholder return for Cerence's common stock was $25.05 as of September 30, 2025, compared to $100 on October 1, 2020[178]. Cybersecurity and Data Privacy - The company has implemented a cybersecurity risk management program, with no identified incidents materially affecting operations or financial condition[161][160]. - The company faces significant costs related to enhancing information security measures against cyber threats, with no assurance that these measures will prevent data breaches[93]. - Compliance with global privacy and data security requirements may lead to additional costs and liabilities, impacting the company's ability to collect and process data globally[94]. - The European General Data Protection Regulation (GDPR) imposes stringent data protection obligations, increasing potential penalties for non-compliance[95]. - The company is subject to evolving data protection laws in various jurisdictions, including the U.S., EU, UK, and others, which may require substantial operational adjustments and costs[101].

Financial Performance - Polar Power reported net sales of $1.3 million for Q3 2025, a 74% decline from $4.9 million in Q3 2024[3][11] - The company experienced a gross loss of $2.26 million in Q3 2025, a decrease of 259% compared to a gross profit of $1.42 million in Q3 2024[15] - The company recorded a net loss of $4.08 million, or $(1.63) per share, for Q3 2025, compared to a net profit of $0.01 million in Q3 2024[21] - Net sales for the three months ended September 30, 2025, were $1,273 million, a decrease from $4,914 million in the same period of 2024, representing a decline of approximately 74%[28] - Gross profit for the three months ended September 30, 2025, was a loss of $2,260 million compared to a profit of $1,424 million in 2024, indicating a significant deterioration in profitability[28] - The net loss for the three months ended September 30, 2025, was $4,085 million, compared to a net income of $13 million in the same period of 2024[28] - Total other income (expenses), net for the three months ended September 30, 2025, was $(208) million, compared to $(27) million in 2024, reflecting a decline in other income sources[28] Operating Expenses - Operating expenses decreased by $0.22 million, but were offset by a $0.45 million impairment of right-to-use assets[3] - Total operating expenses for the three months ended September 30, 2025, were $1,617 million, an increase from $1,384 million in 2024, reflecting a rise of about 17%[28] - Interest expense and finance costs for the nine months ended September 30, 2025, totaled $543 million, compared to $496 million in 2024, indicating an increase of approximately 9%[30] Sales and Customer Concentration - Sales to the largest U.S. telecommunications customer accounted for 63% of total net sales in Q3 2025, compared to 46% in Q3 2024[12] - Polar Power's international sales represented 0% of total net sales in Q3 2025, down from 10% in Q3 2024[13] Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2025, resulted in a net cash used of $589 million, compared to $400 million in the same period of 2024[30] - Cash and cash equivalents at the end of the period were $4 million, a significant decrease from $498 million at the beginning of the period[30] Inventory and R&D - The company recorded an inventory write-down of $1,967 million for the nine months ended September 30, 2025, which was not present in the same period of 2024[30] - Research and development expenses decreased by 9% to $157,000 in Q3 2025, with plans to recruit additional engineers in 2026[17] Fundraising - The company raised $0.74 million in October 2025 by selling shares to fund operations[8] Backlog - The company's backlog increased to $5.3 million as of September 30, 2025, up from $1.2 million on June 30, 2025[7]

Financial Performance - Revenue for fiscal year 2025 increased to $5,431,276, representing a 2.4% growth compared to $5,306,197 in fiscal year 2024[183]. - Gross profit for fiscal year 2025 was $1,333,443, a 6.5% increase from $1,251,652 in fiscal year 2024, with a gross profit margin of 24.6%[183]. - Operating income rose to $528,289 in fiscal year 2025, up from $488,499 in fiscal year 2024, resulting in an operating margin of 9.7%[183]. - Net income for the year ended September 30, 2025, was $319,034 thousand, compared to $306,914 thousand in 2024[243]. - Adjusted EBITDA for fiscal year 2025 was $701,554 thousand, with an adjusted EBITDA margin of 12.9%, up from 11.6% in 2024[243]. Segment Performance - The U.S. Federal Services Segment reported revenue of $3,067,691 for fiscal year 2025, a 12.1% increase from $2,737,244 in fiscal year 2024[192]. - The U.S. Services Segment experienced a revenue decline to $1,763,691, down 7.7% from $1,911,813 in fiscal year 2024[197]. - The Outside the U.S. Segment's revenue decreased to $599,894, an 8.7% decline from $657,140 in fiscal year 2024, primarily due to business disposals[201]. - The company anticipates operating margins for the U.S. Federal Services Segment in fiscal year 2026 to range between 15.5% and 16%[195]. - The company expects operating margins for the Outside the U.S. Segment in fiscal year 2026 to range between 3% to 5%[203]. Cash Flow and Debt - The net cash provided by operating activities decreased by $85.9 million to $429.4 million in fiscal year 2025 compared to $515.3 million in fiscal year 2024[212]. - The company reported a free cash flow of $366.2 million for fiscal year 2025, down from $401.1 million in fiscal year 2024[217]. - The total debt under the Credit Agreement as of September 30, 2025, was $1.35 billion, with an additional $750 million available through a revolving credit facility[218]. - The Consolidated Net Total Leverage Ratio as of September 30, 2025, was 1.51, compared to 1.37 in the previous year[228]. - The Consolidated Net Interest Coverage Ratio improved to 9.25 for fiscal year 2025, up from 8.54 in fiscal year 2024[228]. Shareholder Returns - The company utilized $447.5 million in fiscal year 2025 to repurchase 5.8 million shares of common stock, funded by operating cash flows and a $250 million expansion of its credit facility[214]. Assets and Investments - Cash and cash equivalents stood at $222.4 million as of September 30, 2025, indicating a stable liquidity position[208]. - The company made significant investments in technology upgrades for federal medical disability examinations, largely completed in the middle of fiscal year 2025[216]. - As of September 30, 2025, the company reported $1.78 billion in goodwill and $538.3 million in net intangible assets[235]. - The company held net assets denominated in currencies other than the U.S. Dollar amounting to $266.8 million as of September 30, 2025[246]. Tax and Exchange Rate Impact - The effective tax rate for fiscal year 2025 was 28.3%, up from 24.5% in fiscal year 2024, impacted by the disposal of businesses in Australia and Korea[189]. - A hypothetical 10% favorable exchange rate movement would increase comprehensive income by $26,681 thousand[248]. - A 100 basis point increase in interest rates would decrease net income by $6,969 thousand, while a decrease would increase net income by the same amount[251]. Other Financial Metrics - The company experienced a rise in Days Sales Outstanding (DSO) to 62 days as of September 30, 2025, up from 61 days in the previous year[216]. - The company has no collateral posted with its counterparty related to derivatives as of September 30, 2025[252].

Growth and Market Strategy - Ashland has set aggressive growth goals for its reportable segments, which may be impacted by risks such as failure to optimize assets and integrate acquisitions[93]. - More than half of Ashland's net sales for fiscal 2025 were to customers outside of North America, indicating a strong reliance on international markets[106]. - Ashland operates in over 100 countries, with a significant portion of sales generated outside the United States[138]. Financial Risks and Liabilities - Ashland's substantial indebtedness could limit its ability to pursue strategic acquisitions and respond to changing market conditions[112]. - The company has financial exposure to liabilities from pending claims, including those related to asbestos, which could adversely affect results of operations and cash flow[134]. - The complexity of the global tax environment may adversely affect Ashland's business and financial condition[138]. - Changes in the valuation of deferred tax assets and liabilities could impact Ashland's financial results[138]. - The company faces risks related to potential new taxes and disagreements with tax authorities[138]. Environmental and Regulatory Challenges - The company is committed to 2032 targets through the Science Based Targets Initiative (SBTi) to limit global warming to no more than 1.5C above preindustrial levels[103]. - Ashland's operations are vulnerable to climate change impacts, which may lead to supply chain disruptions and increased raw material pricing[97]. - Ashland is subject to extensive environmental regulations, incurring significant costs for compliance, which could impact cash flow and profitability[130][131]. - Evolving ESG regulations may require significant resources and data management systems, impacting Ashland's ability to manage materials effectively[137]. - Changes in laws and regulations could increase operational costs and restrict business strategies, complicating compliance across its global footprint[135][136]. Operational and Market Risks - Rising and volatile raw material prices, especially hydrocarbon derivatives, could negatively impact Ashland's costs and results of operations[116]. - The company faces significant geopolitical risks that could disrupt supply chains and limit market access, particularly in the Middle East and Europe[108]. - Business disruptions from natural disasters and operational risks could seriously harm Ashland's financial performance and operational capabilities[95]. - Ashland operates in highly competitive markets, facing pressure on prices and margins, which may adversely affect its reportable segments and results of operations[120]. Innovation and Human Resources - Ashland's ability to innovate and develop new products is critical for maintaining its competitive position in the specialty additives and materials industry[114]. - The company is under pressure to provide sustainable product offerings in response to increasing consumer demand for environmentally friendly products[115]. - Ashland's success depends on attracting and retaining key employees, with reliance on senior management for strategic direction and growth execution[121]. Cybersecurity and Intellectual Property - The company faces risks related to cybersecurity threats, with potential disruptions to IT systems that could harm reputation and financial condition[123][125]. - Ashland's intellectual property rights may be challenged or rendered unenforceable, potentially harming its competitive position and profitability[126][127]. - The company may face product liability claims and recalls, which could lead to substantial expenditures and affect consumer confidence in its products[129].