Financial Performance - Fiscal 2025 net income totaled $335.6 million, or $3.35 per share, compared to $289.8 million, or $2.94 per share, in fiscal 2024, marking a 15.5% increase in net income year-over-year[5] - Fiscal 2025 consolidated net financial earnings (NFE) reached $329.6 million, or $3.29 per share, up from $290.8 million, or $2.95 per share, in fiscal 2024, reflecting a 13.4% increase[5] - The company achieved the high end of its fiscal 2025 NFEPS guidance range of $3.20 to $3.30, marking the fifth consecutive year of outperforming initial annual NFEPS guidance[5] - For fiscal 2026, the company introduced an NFEPS guidance range of $3.03 to $3.18, indicating a long-term growth target of 7% to 9% starting from a fiscal 2025 base of $2.83 per share[4][6] - NJR reported total operating revenues of $336.1 million for Q4 2025, a decrease of 15% compared to $395.8 million in Q4 2024[31] - Net income for Q4 2025 was $15.1 million, down 83% from $91.1 million in Q4 2024[31] - Basic earnings per share decreased to $0.15 in Q4 2025 from $0.92 in Q4 2024, a decline of 84%[31] - The company reported a net financial earnings (NFE) of $16.2 million for Q4 2025, compared to $88.7 million in Q4 2024[33] - NJR's fiscal year 2025 total operating revenues reached $2.04 billion, a 13% increase from $1.80 billion in fiscal year 2024[31] - The net financial (loss) earnings for the company were $16,229 thousand for the twelve months ended September 30, 2025, compared to $290,828 thousand for the same period in 2024, showing a decrease of about 94%[41] Operational Highlights - New Jersey Natural Gas (NJNG) reported a fiscal 2025 NFE of $213.5 million, significantly up from $133.4 million in fiscal 2024, driven by higher utility gross margin[10] - Clean Energy Ventures (CEV) placed a record 93 megawatts (MW) of in-service capacity in fiscal 2025, the highest annual installed capacity in its history[5] - Capital expenditures for fiscal 2025 were $752.5 million, an increase from $575.1 million in fiscal 2024, primarily due to higher expenditures at NJNG and CEV[19] - Cash flows from operations increased to $466.3 million in fiscal 2025, compared to $427.4 million in fiscal 2024, largely due to an increase in base rates at NJNG[19] - The company expects to deploy between $4.8 billion and $5.2 billion in capital expenditures through 2030, with over 60% allocated to utility spending at NJNG[19] - NJNG serviced approximately 589,000 customers as of September 30, 2025, up from approximately 583,000 customers a year earlier[11] - Total operating expenses increased to $295.7 million in Q4 2025 from $249.7 million in Q4 2024, an increase of 18%[31] - NJR's utility gross margin for Q4 2025 was $91.2 million, up 35% from $67.7 million in Q4 2024[36] - The utility gross margin increased to $91,187 thousand for Q4 2025, up from $67,708 thousand in Q4 2024, marking a growth of approximately 35%[43] - Total Utility Gross Margin for the year was $686,426, an increase from $544,870, representing a 25.9% growth year-over-year[44] Customer and Market Metrics - The market capitalization of the company as of September 30, 2025, was $4,838,044 thousand, up from $4,694,580 thousand a year earlier, indicating a growth of about 3%[41] - The throughput for NJNG, Core Customers was 17.5 Bcf for the three months ended September 30, 2025, compared to 15.1 Bcf in the same period of 2024, representing an increase of 16%[41] - The yield at September 30, 2025, was 4.0%, compared to 3.8% at the same date in 2024, indicating an improvement in yield[41] - Total Customers increased to 588,975 from 582,916, representing a growth of 1.0%[44] - Total System Throughput increased to 99.6 Bcf from 90.5 Bcf, reflecting a growth of 10.1% year-over-year[44] Segment Performance - Energy Services reported operating revenues of $81,909 thousand for the three months ended September 30, 2025, compared to $178,420 thousand for the same period in 2024, reflecting a decrease of 54%[37] - The financial margin for Energy Services was $(1,585) thousand for Q4 2025, down from $96,302 thousand in Q4 2024, indicating a significant decline[37] - The net (loss) income for Energy Services was $(5,689) thousand for the three months ended September 30, 2025, compared to a net income of $70,703 thousand in the same period of 2024[38] - Total Operating Revenues for Clean Energy Ventures decreased to $112,501 from $130,563, a decline of 13.8% year-over-year[46] - Net Income for Clean Energy Ventures was $61,156, up from $33,662, marking an increase of 81.7% year-over-year[46] - Operating (Loss) Income in Energy Services was $(4,811), a significant decrease from $97,241 in the previous year[46] - Gas Sold and Managed decreased to 108.6 Bcf from 125.3 Bcf, a decline of 13.3% year-over-year[46] - Solar Renewable Energy Certificates Sold decreased to 328,776 from 419,266, a decline of 21.6% year-over-year[46]

Financial Results - ZyVersa Therapeutics, Inc. announced its unaudited financial results for the quarter ended September 30, 2025[5] - The press release detailing the financial results was issued on November 19, 2025[5] Company Classification - The company is classified as an emerging growth company under the Securities Act of 1933[4]

Financial Performance - Q4 net revenue was $652 million, a decrease of 22% year-over-year; pro forma net revenue decreased 5%[7] - FY 2025 net revenue totaled $2.67 billion, down 16% compared to the prior year; pro forma net revenue decreased 9%[20] - Q4 GAAP EPS increased to $1.07 from $0.17 in the prior year; adjusted EPS decreased 18% to $0.83[7] - FY 2025 GAAP EPS was $0.61, up from a loss of $(3.03) in the prior year; adjusted EPS decreased 25% to $2.49[20] - Adjusted EBITDA for FY 2025 was $388 million, a decrease of 24% year-over-year; pro forma adjusted EBITDA decreased 19%[24] - The company experienced a gross profit of $226.8 million, down 21.4% from $288.4 million year-over-year[39] - Consolidated net income for the year ended September 30, 2025, was $52.1 million, a significant recovery from a net loss of $202.0 million in the previous year[45] Cash Flow and Debt - Cash flows from operating activities in FY 2025 were $56 million, a decrease of $135 million year-over-year[25] - Hillenbrand's cash flows from operating activities from continuing operations were $56.2 million for the year ended September 30, 2025, a significant decrease from $191.3 million in 2024[40] - Cash, cash equivalents, and restricted cash decreased to $191.4 million at the end of the period from $227.9 million at the beginning of the period[40] - As of September 30, 2025, net debt was $1.36 billion, with a net debt to pro forma adjusted EBITDA ratio of 3.7x[26] - Total debt as of September 30, 2025, was $1,524.8 million, with a net debt of $1,360.0 million after accounting for cash and cash equivalents of $164.8 million[47] - The ratio of net debt to adjusted EBITDA for the trailing twelve months ended September 30, 2025, was 3.7[47] Backlog and Future Revenue - The company has a backlog of $1.52 billion, which decreased 10% year-over-year[16] - The total backlog represents expected net revenue from awarded contracts, with the majority expected to be fulfilled within the next twelve months[35] - The company anticipates that future net revenue will be influenced by order backlog due to lead times in fulfilling engineered-to-order equipment[37] - The backlog for Advanced Process Solutions as of September 30, 2025, was $1,522.4 million, down from $1,681.4 million in the previous year[47] - The company anticipates future sales and earnings growth, contingent on successful execution of its strategic initiatives, including the proposed merger with Lone Star[48] Impairment and Charges - The company recorded impairment charges of $83.5 million in the three months ended September 30, 2025, compared to no impairment charges in the same period of 2024[41] Market and Operational Risks - Risks associated with the Merger include potential delays in regulatory approvals and the possibility of incurring significant transaction costs[50] - The company faces competition in its industries, which may impact pricing and market share[50] - Hillenbrand's financial performance may be affected by global market conditions, including volatility in interest and exchange rates[50] - There are uncertainties related to environmental regulations and the physical risks of climate change that could impact operations[50] - Labor shortages and increasing competition for skilled workers are challenges that Hillenbrand is currently facing[50] - The company is subject to risks from foreign currency fluctuations and potential labor disruptions[50] - Hillenbrand's effective tax rate may be influenced by changes in tax laws and the mix of earnings[50] Strategic Initiatives and Acquisitions - Hillenbrand is set to be acquired by Lone Star Funds for an enterprise value of approximately $3.8 billion, with shareholders receiving $32.00 per share[5] - The company has made acquisitions, such as the Schenck Process Food and Performance Materials business, which may influence its financial condition and operational results[50] Operational Overview - Hillenbrand operates in over 100 countries, providing mission-critical processing equipment and solutions across durable plastics, food, and recycling markets[52] - The company is focused on pursuing excellence, collaboration, and innovation to shape solutions for its stakeholders[52] Segment Performance - Advanced Process Solutions adjusted EBITDA for Q3 2025 was $103.8 million, down from $117.1 million in Q3 2024, representing a decrease of 11.3%[43] - Molding Technology Solutions adjusted EBITDA for Q3 2025 was $21.1 million, a decline of 49.8% compared to $42.0 million in Q3 2024[45] - Advanced Process Solutions net revenue for Q3 2025 was $557.3 million, down from $591.1 million in Q3 2024, reflecting a decrease of 5.7%[46] - Molding Technology Solutions net revenue for Q3 2025 was $94.8 million, a decrease of 61.6% from $246.5 million in Q3 2024[46] - Consolidated pro forma net revenue for the year ended September 30, 2025, was $2,428.3 million, down from $2,656.7 million in 2024, indicating a decline of 8.6%[46]

Revenue Performance - Net revenues for the three months ended September 30, 2025, increased by $5.5 million, or 19%, to $35.4 million compared to $29.9 million for the same period in 2024[154]. - Net revenues for the nine months ended September 30, 2025, increased by $31.9 million, or 51%, to $94.7 million compared to $62.8 million for the same period in 2024[154]. - Net revenues for the three months ended September 30, 2025, increased by 19% to $35,398,000 compared to $29,859,000 in 2024, driven primarily by increased Digital revenue[157]. - The Audio Segment reported net revenues of $13,550,000 for the three months ended September 30, 2025, down from $16,751,000 in 2024, primarily due to a decrease in Spot revenue[172]. - The Video Segment's net revenues increased by 66% to $21,848,000 for the three months ended September 30, 2025, compared to $13,108,000 in 2024, driven by growth in digital revenue[174]. Operating Loss and Expenses - Operating loss for the three months ended September 30, 2025, increased by $0.2 million, or 3%, to $7.1 million compared to $6.9 million for the same period in 2024[154]. - Operating loss for the nine months ended September 30, 2025, decreased by $5.1 million, or 22%, to $18.6 million compared to $23.7 million for the same period in 2024[154]. - Total operating expenses for the three months ended September 30, 2025, were $42.5 million, representing 111% of net revenues[156]. - Operating expenses for the three months ended September 30, 2025, rose by 16% to $42,489,000 from $36,732,000 in 2024, mainly due to higher digital platform costs[159]. - Corporate expenses decreased by 42% to $1,341,000 for the three months ended September 30, 2025, compared to $2,319,000 in 2024, primarily due to lower professional service fees[161]. Net Loss - Net loss for the three months ended September 30, 2025, increased by $72.8 million, or 133%, to $17.9 million compared to net income of $54.9 million for the same period in 2024[154]. - Net loss for the nine months ended September 30, 2025, decreased by $36.8 million, or 1252%, to $33.9 million compared to net income of $2.9 million for the same period in 2024[154]. - The net loss for the three months ended September 30, 2025, was $17,891,000, a decrease from a net income of $54,926,000 in 2024, reflecting the impact of the Estrella Acquisition[171]. Cash Flow and Liquidity - Cash flows provided by operating activities increased by $32.7 million, or 106%, to $1.9 million for the nine months ended September 30, 2025, compared to cash flows used in operating activities of $30.7 million for the same period in 2024[154]. - Cash flows provided by operating activities were $1.9 million for the nine months ended September 30, 2025, a significant improvement from cash flows used of $30.7 million for the same period in 2024[183]. - Cash flows used in investing activities were $0.3 million for the nine months ended September 30, 2025, down from $7.6 million in the same period in 2024, which included costs related to the Estrella acquisition and capital expenditures for a new digital platform[185]. - Cash flows used in financing activities were $0.4 million for the nine months ended September 30, 2025, compared to $41.4 million provided by financing activities in the same period in 2024, which was primarily from the First Lien Term Loan[186]. - The company is actively managing liquidity by optimizing working capital and controlling expenses, resulting in reduced cash burn for the period[181]. Financial Position and Management - As of September 30, 2025, the company had cash, cash equivalents, and restricted cash of $8.2 million, with negative working capital of $43.3 million, an increase from negative working capital of $18.0 million at December 31, 2024[180]. - The increase in negative working capital was driven by the cancellation of certain programming rights contracts and increased accounts payable and accrued expenses[180]. - The company maintains a positive equity position despite net losses, indicating a focus on long-term financial health[181]. - Cash flows from operating activities increased mainly due to higher accounts payable, indicating improved cash management practices[183]. - Management plans to refinance $5.0 million in Delayed Draw Term Loans due in May 2026 and July 2026, using cash flow from operations or additional investments[182]. - The company continues to evaluate potential acquisitions to leverage strengths and support long-term growth, while managing liquidity prudently[182]. Adjusted EBITDA - Adjusted EBITDA for the three months ended September 30, 2025, was $2.1 million, increasing 1971% compared to $(0.1) million for the same period in 2024[155]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $5.0 million, increasing 209% compared to $(4.6) million for the same period in 2024[155]. - Adjusted EBITDA for the three months ended September 30, 2025, was $2,095,000, compared to a loss of $112,000 in 2024, indicating improved operational performance[178]. Interest and Tax Expenses - Interest expense increased by 20% to $3,931,000 for the three months ended September 30, 2025, due to additional long-term debt related to the Estrella Acquisition[166]. - The provision for income taxes decreased by 18% to $282,000 for the three months ended September 30, 2025, compared to $342,000 in 2024, due to changes in the deferred tax liability[169]. - Depreciation and amortization expense decreased slightly to $1,684,000 for the three months ended September 30, 2025, from $1,741,000 in 2024, as certain assets became fully depreciated[162].

Financial Performance - Record revenue of $57.0 billion for Q3 FY26, up 22% from Q2 and up 62% year-over-year[1] - Data Center revenue reached $51.2 billion, up 25% from Q2 and up 66% year-over-year[4] - Q3 FY26 diluted earnings per share were $1.30, a 20% increase from Q2 and a 67% increase year-over-year[5] - Revenue for the three months ended October 26, 2025, was $57,006 million, a 62.5% increase from $35,082 million for the same period in 2024[21] - Gross profit for the nine months ended October 26, 2025, reached $102,370 million, up 48.1% from $69,135 million in the prior year[21] - Operating income for the three months ended October 26, 2025, was $36,010 million, representing a 64.5% increase compared to $21,869 million in the same quarter of 2024[21] - Net income for the three months ended October 26, 2025, was $31,910 million, a 65.5% increase from $19,309 million in the prior year[21] - Basic net income per share for the three months ended October 26, 2025, was $1.31, compared to $0.79 for the same period in 2024[21] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $11,486 million, an increase from $9,107 million at the end of the same period in 2024[26] - Total assets as of October 26, 2025, were $161,148 million, up from $111,601 million in January 2025[23] - Total liabilities increased to $42,251 million from $32,274 million in January 2025[23] - Net cash provided by operating activities for the nine months ended October 26, 2025, was $66,530 million, an increase from $47,460 million in the prior year[25] - Free cash flow for the three months ended October 26, 2025, was $22,089 million, compared to $13,450 million in the previous quarter, representing a 64.5% increase[29] Margins and Income - GAAP and non-GAAP gross margins were 73.4% and 73.6%, respectively[1] - GAAP gross profit for the three months ended October 26, 2025, was $41,849 million, up from $33,853 million in the previous quarter, reflecting a 23.5% increase[28] - Non-GAAP gross margin improved to 73.6% for the three months ended October 26, 2025, compared to 72.7% in the previous quarter[28] - GAAP net income for the three months ended October 26, 2025, was $31,910 million, an increase of 20.3% from $26,422 million in the previous quarter[29] - Non-GAAP net income for the three months ended October 26, 2025, was $31,767 million, an increase from $25,783 million in the previous quarter, reflecting a 23.3% rise[29] Future Outlook - For Q4 FY26, revenue is expected to be $65.0 billion, plus or minus 2%[7] - The company expects a GAAP gross margin of 74.8% for Q4 FY2026, with a non-GAAP gross margin projected at 75.0%[33] Strategic Initiatives - NVIDIA announced a strategic partnership with OpenAI to deploy at least 10 gigawatts of systems for AI infrastructure[8] - NVIDIA plans to invest £2 billion in the U.K. market to build next-generation AI infrastructure[8] - NVIDIA Blackwell achieved the highest performance in the SemiAnalysis InferenceMAX benchmarks, delivering 10x throughput per megawatt compared to the previous generation[7] Gaming Revenue - Third-quarter Gaming revenue was $4.3 billion, down 1% from Q2 but up 30% year-over-year[13] Research and Development - Research and development expenses for the three months ended October 26, 2025, were $4,705 million, compared to $3,390 million in the same period of 2024[21] Shareholder Returns - NVIDIA returned $37.0 billion to shareholders in the first nine months of FY26 through share repurchases and cash dividends[2]

Financial Performance - Q3 2025 revenue was $29.8 million, down from $33.6 million in Q3 2024, with gross margins above 50%[4] - Net income increased to $6.9 million, a 73% rise from $4.0 million in Q3 2024, resulting in a net margin of 23.2%[4] - Adjusted EBITDA for Q3 2025 was $11.9 million, a 6.3% increase from $11.2 million in Q3 2024[4] - The trailing twelve-month income from continuing operations was $30.5 million, equating to earnings per share of $0.64[4] - For the three months ended September 30, 2025, the net income was $6.865 million, compared to $3.956 million in the same period of 2024, representing a 73.5% increase[14] - Adjusted EBITDA for the three months ended September 30, 2025, was $11.902 million, up from $11.157 million in 2024, indicating a growth of 6.7%[14] Revenue Growth - Non-advertising revenue for Athlon Sports and Men's Journal grew nearly 200% in Q3 2025, driven by off-property distribution and syndication[4] - TheStreet's audience reach increased by 20% in Q3 2025, with revenue from content syndication up 200% compared to Q3 2024[4] - Parade's traffic rose by 25% year-over-year, with non-advertising revenue more than doubling (+111%) compared to Q3 2024[4] Cost Management - Interest expense (net) for the three months ended September 30, 2025, was $2.857 million, a decrease from $3.159 million in 2024, reflecting a reduction of 9.5%[14] - Depreciation and amortization for the three months ended September 30, 2025, was $2.321 million, slightly down from $2.379 million in 2024, a decrease of 2.4%[14] - Stock-based compensation for the three months ended September 30, 2025, was $86, significantly lower than $732 in 2024, a reduction of 88.2%[14] - The company reported no income or loss from discontinued operations for the three months ended September 30, 2025, compared to a loss of $822 in 2024[14] Strategic Initiatives - The company reduced net leverage below 2x after making $10 million in principal payments year to date[4] - The Arena Group acquired digital assets and IP of ShopHQ and Lindy's Sports in October 2025, funded with cash on hand[5] - The new intelligence platform, Encore, is expected to connect user behavior across ads, newsletters, and content, with over 40,000 new users registering daily[6] - The company anticipates future revenues and income growth, alongside cost reductions and market expansion strategies[16] - The company is focused on product introductions and capital requirements to support its growth strategy[16] Forward-Looking Statements - Forward-looking statements indicate potential risks and uncertainties that may affect future performance[17] - The company does not undertake any obligation to publicly release revisions to forward-looking statements except as required by law[18]

Restaurant Operations - As of September 28, 2025, Jack in the Box operated and franchised 2,136 restaurants, with 93% (1,986) being franchised[14]. - Del Taco served approximately 2 million guests each week and operated 576 restaurants, with 77% (444) being franchised as of September 28, 2025[16]. - The total number of Jack in the Box restaurants is 2,136, with 150 company-operated and 1,986 franchised[136]. - The total number of Del Taco restaurants is 576, with 132 company-operated and 444 franchised[136]. - The Jack in the Box restaurants are approximately 1,372 square feet and support a Y-Lane drive-thru configuration[23]. - The Del Taco restaurants are approximately 1,152 square feet and also support a Y-Lane drive-thru configuration[24]. - As of September 28, 2025, the Company had a total of 5,046 employees, with 4,440 being restaurant employees[39]. - Approximately 84% of restaurant employees were part-time as of the end of fiscal 2025[39]. Franchise Agreements - The franchise agreement for Jack in the Box includes an initial franchise fee of $50,000 per restaurant and royalty payments of 5.0% of gross sales[18]. - The franchise agreement for Del Taco includes an initial franchise fee of $35,000 per restaurant and royalty payments of 5.0% and 4.0% for marketing, respectively[19]. - Approximately 93% of Jack in the Box restaurants and 77% of Del Taco restaurants are franchised, indicating a high reliance on franchisee performance for revenue generation[84]. Financial Performance - The Company reported that same-store sales, system restaurant sales, and average unit volumes (AUVs) are key performance metrics used to assess profitability[161]. - Jack in the Box company-operated restaurant sales decreased by $10.3 million, or 2.4%, in fiscal 2025 compared to fiscal 2024, primarily due to a decrease in transactions[167]. - Del Taco company-operated restaurant sales decreased by $71.4 million, or 25.3%, in fiscal 2025 compared to fiscal 2024, driven by a decrease in the average number of restaurants and transactions[177]. - Same-store sales at Jack in the Box company-operated restaurants decreased by 3.7% in fiscal 2025, with transactions down by 5.7% and average check up by 2.0%[168]. - Same-store sales at Del Taco company-operated restaurants decreased by 2.4% in fiscal 2025, with transactions down by 6.9% and average check up by 4.5%[178]. - Franchise rental revenues for Jack in the Box decreased by $14.5 million, or 4.2%, in fiscal 2025, primarily due to lower sales[174]. - Franchise royalties for Jack in the Box decreased by $7.1 million, or 3.4%, in fiscal 2025, driven by lower sales[175]. - Franchise rental revenues for Del Taco increased by $7.7 million, or 27.3%, in fiscal 2025, primarily due to higher rental income from new subleases[181]. - Franchise occupancy expenses for Del Taco increased by $7.2 million, or 25.9%, in fiscal 2025, primarily due to higher operating lease costs[183]. Strategic Initiatives - The Company plans to accelerate cash flow by discontinuing dividends and reallocating funds to initiatives that drive sales growth, particularly in digital and technology[25]. - The Company announced a plan to explore strategic alternatives for the Del Taco brand, leading to a Stock Purchase Agreement to sell Del Taco for an aggregate purchase price of $115 million in cash[163]. - The Company entered into a Stock Purchase Agreement to sell Del Taco for an aggregate purchase price of $115 million in cash[13]. Employee and Training Programs - The company invests in employee training and development to reduce turnover and improve service quality[63]. - The company offers a comprehensive benefits package including medical, dental, vision insurance, and a 401(k) plan with company matching contributions[42]. Competition and Market Risks - The company faces significant competition in the food service industry, particularly from established national and regional chains, as well as local businesses[68]. - The company is subject to risks related to macroeconomic conditions, including changes in consumer confidence and discretionary spending[57]. - Changes in customer preferences related to dietary concerns could lead to a decline in sales and royalties from franchisees[71]. - The effectiveness of marketing and promotional programs is critical, as competitors with greater financial resources may impact the company's market position[75][76]. Regulatory and Compliance Risks - The company is committed to maintaining compliance with various federal, state, and local laws governing food safety and employee rights[53]. - The company is subject to various consumer protection and privacy laws, which could lead to material legal costs[94]. - Compliance with the Americans with Disabilities Act and similar state laws may incur significant expenses related to modifications and legal claims[93]. - The company is subject to increasing legal complexity and potential litigation costs that could materially affect financial results[107]. - The company is subject to financial and regulatory risks associated with owned and leased properties, which could adversely affect operational performance[85]. Financial Condition and Debt - The Company has approximately $1.7 billion of outstanding debt as of September 28, 2025[121]. - The Company declared total dividends of $16.7 million in 2025, a decrease from $34.2 million in 2024, and has discontinued its dividend[210]. - As of September 28, 2025, the Company had $81.8 million in cash and restricted cash, with available borrowings of $96.8 million under its credit facilities[203]. Cybersecurity and Technology - The company relies heavily on information technology and digital service providers for operations, including point-of-sale processing and order management[118]. - The company maintains a comprehensive information security program to manage cybersecurity threats[126]. - The company engages third parties to assess and remediate material risks from cybersecurity threats[133]. - The Audit Committee oversees the company's cybersecurity and data privacy risk management[134]. - The company is subject to risks associated with increasing dependence on digital commerce platforms and technologies[117]. Economic and Commodity Risks - The company is subject to volatility in food and commodity costs, which can affect profit margins and may require menu modifications[58]. - Increased labor costs due to minimum wage requirements and other regulatory changes could adversely impact the company's operating costs[64]. - The company relies on frequent deliveries of fresh produce and other food products, making it vulnerable to supply chain disruptions[62]. - Severe weather conditions and natural disasters could result in property damage and lost restaurant sales, particularly affecting locations in California and Texas[77][78]. Financial Reporting and Internal Controls - Effective internal controls are necessary to ensure accurate financial reporting; weaknesses could harm investor confidence and stock value[108]. - Changes in tax laws could adversely affect the company's income tax expenses and overall financial condition[109].

Financial Performance - Total revenue for fiscal Q1 2026 increased by 16% year over year to $2.5 billion, compared to $2.1 billion in fiscal Q1 2025[2] - Non-GAAP net income for fiscal Q1 2026 was $662 million, or $0.93 per diluted share, up from $545 million, or $0.78 per diluted share in fiscal Q1 2025[3] - GAAP operating income for the three months ended October 31, 2025, was $309 million, an increase from $286 million in the same period of 2024[28] - Non-GAAP operating income rose to $746 million, compared to $616 million year-over-year, reflecting a non-GAAP operating margin of 30.2%, up from 28.8%[28] - GAAP net income decreased to $334 million from $351 million year-over-year, while non-GAAP net income increased to $662 million from $545 million[28] Revenue Guidance - The company expects total revenue for fiscal Q2 2026 to be in the range of $2.57 billion to $2.59 billion, representing year-over-year growth of 14% to 15%[9] - Guidance for Next-Generation Security ARR for fiscal year 2026 is projected to be between $7.00 billion and $7.10 billion, indicating year-over-year growth of 26% to 27%[9] Cash Flow and Margins - Adjusted free cash flow margin is expected to be in the range of 38% to 39% for fiscal year 2026[9] - Operating margin for fiscal Q1 2026 was over 30%, with a target of achieving over 40% adjusted free cash flow margin by FY'28[4] Assets and Liabilities - Cash and cash equivalents increased to $3,066 million as of October 31, 2025, up from $2,269 million at July 31, 2025[31] - Total current assets decreased slightly to $7,310 million from $7,523 million[31] - Total liabilities decreased to $14,871 million from $15,752 million, indicating improved financial health[31] - Stockholders' equity increased to $8,665 million from $7,824 million, reflecting a strong retained earnings growth from $2,484 million to $2,818 million[31] - Deferred revenue decreased to $6,132 million from $6,302 million, indicating a potential shift in revenue recognition[31] Strategic Initiatives - The company announced its intent to acquire Chronosphere, enhancing its capabilities in observability for the data center era[4] - The company appointed Mark Goodburn to the board of directors and announced the retirement of Mary Pat McCarthy effective January 23, 2026[5] Shareholder Information - The weighted-average shares used to compute diluted GAAP net income per share remained stable at 709 million[28] - The company reported share-based compensation-related charges of $387 million for the latest quarter, up from $315 million in the previous year[28] Performance Obligations - Next-Generation Security ARR grew by 29% year over year to $5.9 billion[5] - Remaining performance obligation increased by 24% year over year to $15.5 billion[5]

Financial Performance - For the nine months ended September 30, 2025, the net loss was $24.3 million, a 203.7% increase compared to a net loss of $7.99 million for the same period in 2024[101] - Total operating expenses for the three months ended September 30, 2025, were $20.75 million, an increase of 814.6% from $2.27 million in the same period in 2024[94] - The accumulated deficit as of September 30, 2025, was approximately $136.9 million[78] - The company incurred a net loss of $24.3 million for the nine months ended September 30, 2025, with an accumulated deficit of $136.9 million[111] Research and Development - Research and development expenses for the three months ended September 30, 2025, were $0.4 million, a decrease of 16.3% from $0.5 million in the same period in 2024[95] - Research and development expenses for the nine months ended September 30, 2025, were $1.0 million, a decrease of 15.1% from $1.66 million in the same period in 2024[102] - Impairment of in-process research and development was $18.6 million for the three months ended September 30, 2025, compared to $0 for the same period in 2024[97] - Impairment of in-process research and development was $18.6 million for the nine months ended September 30, 2025, compared to $0.0 million for the same period in 2024, due to a significant decline in market capitalization[104] Operating Activities - Net cash used in operating activities was approximately $4.7 million for the nine months ended September 30, 2025, an improvement from $6.3 million in 2024[108] - Current assets decreased to $996,000 as of September 30, 2025, from $1.716 million in 2024, while current liabilities increased to $12.766 million from $11.231 million[110] - The working capital deficiency increased to $11.770 million as of September 30, 2025, compared to $9.515 million in 2024[110] Financing and Capital - The company expects to continue incurring significant operating losses and will need additional financing to support ongoing operations[79] - The company plans to raise additional capital to fund continued development of its product candidates and expects to incur substantial operating losses for the next several years[117] - The company expects to rely on the issuance of equity or debt to raise additional funds, which may lead to dilution for existing shareholders[119] - Net cash provided by financing activities increased to $3.7 million for the nine months ended September 30, 2025, from $3.3 million in 2024, driven by proceeds from warrant exercises[109] Stock and Market Activity - The company’s common stock was delisted from Nasdaq on October 6, 2025, and began trading on OTCQB on July 28, 2025[80] - The company has no arrangements in place for any strategic business transactions but continues to evaluate potential collaborations with established pharmaceutical companies[118] Administrative Expenses - General and administrative expenses for the three months ended September 30, 2025, were $1.7 million, a decrease of 5.1% from $1.8 million in the same period in 2024[96] - General and administrative expenses decreased by $0.9 million or 20.6% to $5.3 million for the nine months ended September 30, 2025, compared to the same period in 2024[103]

Financial Position - The company reported $188.9 million in cash, cash equivalents, and short-term marketable securities as of September 30, 2025, which is expected to fund operations into fiscal 2029[21]. - The company completed a public offering in October 2025, raising approximately $74.8 million to support operations[201]. - The company faces significant risks related to funding, as it will require substantial additional funding to continue product development efforts[200]. Market Opportunities - The market for atopic dermatitis (AD) is projected to reach approximately $30 billion by 2030, while the combined market for asthma, chronic obstructive pulmonary disease (COPD), chronic rhinosinusitis with nasal polyps (CRSwNP), and prurigo nodularis (PN) is estimated at $35 billion[20]. - The market for urticaria is projected to reach approximately $7 billion by 2032, while the market for atopic dermatitis (AD) is projected to be around $33 billion[67]. - RSV is estimated to cause up to 350,000 hospitalizations and 6.5 million outpatient visits in the U.S. during the 2024-2025 season[38]. Clinical Development - The company has two clinical-stage candidates for respiratory syncytial virus (RSV): zelicapavir and EDP-323, both of which have received Fast Track designation from the FDA[25]. - Zelicapavir has demonstrated statistically significant reductions in RSV viral load and symptoms in Phase 2 clinical studies, with positive topline results announced for high-risk adults and pediatric populations[28]. - EDP-323 has shown sub-nanomolar potency against RSV-A and RSV-B in vitro and has completed a Phase 2 challenge study with positive topline results[28]. - The company plans to file an Investigational New Drug (IND) application for EDP-978, a KIT inhibitor, in the first quarter of 2026[29]. - EPS-3903, a STAT6 inhibitor, has shown in vivo efficacy comparable to dupilumab in multiple disease models and is expected to enter IND-enabling activities in the second half of 2026[35]. Research and Development - Research and development expenses for the fiscal years ended September 30 were $106.7 million in 2025, $131.5 million in 2024, and $163.5 million in 2023, indicating a decreasing trend in R&D spending[190]. - The company plans to continue funding research and development activities through existing financial resources and future cash flows from collaborations[38]. - The company is focused on developing compounds targeting the N-protein and L-protein inhibitors, which have shown a higher barrier to viral resistance compared to fusion inhibitors[42]. Collaboration and Royalties - The company has received a total of $330 million in contractual milestone payments from AbbVie related to the clinical development and commercialization of HCV regimens[31]. - The collaboration with AbbVie has generated $396 million in payments and $954 million in royalty payments through September 30, 2025[86][87]. - A royalty sale agreement was entered into in April 2023, providing a $200 million cash purchase price for 54.5% of future quarterly royalty payments on MAVYRET/MAVIRET sales through June 30, 2032[96]. Competitive Landscape - The company faces substantial competition in the HCV market, with many competitors having greater resources and advanced product candidates[207]. - The company is aware of the intense competition in the moderate-severe atopic dermatitis treatment landscape, dominated by biologics targeting the IL-4 and IL-13 pathways[213]. - The company is monitoring the competitive landscape for RSV treatments, where several companies are developing antiviral options[209]. Regulatory Environment - The FDA review process for a New Drug Application (NDA) typically takes ten months for standard reviews and six months for priority reviews, with no guarantee of approval[144]. - The company must ensure compliance with extensive government regulations throughout the drug development process, which requires substantial time and financial resources[131]. - The FDA may require Phase 4 studies post-approval to further assess a product's safety and effectiveness[139]. Product Efficacy - In a Phase 2b study, zelicapavir showed a 2.2-day improvement in time to complete resolution of all 13 RSV symptoms compared to placebo in the overall efficacy population[49]. - The HR3 population (patients with CHF, COPD, or aged 75+) experienced a 6.7-day faster time to complete resolution of symptoms with zelicapavir compared to placebo[49]. - EDP-323 demonstrated an 85% reduction in viral load AUC in the high dose arm and 87% in the low dose arm compared to placebo, with a highly statistically significant p-value of <0.0001[58]. Intellectual Property - The patent portfolio for RSV, SARS-CoV-2, and HBV includes issued U.S. patents and pending applications, with expected patent coverage until at least 2038 for compounds currently in clinical development[124]. - The existence of issued patents does not guarantee the right to commercialize products, as third parties may hold conflicting patents[128]. - The company may apply for patent term extensions to compensate for delays in obtaining marketing approval, but success is not guaranteed[126].