Exhibit 99.1 Blue Ridge Bankshares, Inc. Announces 2025 Fourth Quarter and Full Year Results A Year of Return to Profitability and Termination of Consent Order RICHMOND, VA, January 29, 2026 /PRNewswire/ -- Blue Ridge Bankshares, Inc. (the "Company") (NYSE American: BRBS), the holding company of Blue Ridge Bank, National Association ("Blue Ridge Bank" or the "Bank") and BRB Financial Group, Inc., today announced financial results for the quarter and year ended December 31, 2025. For the quarter ended Decemb ...

Financial Performance - For the nine months ended September 30, 2025, total revenue was $60.8 million, a decrease of 14.4% from $70.9 million in the same period of 2024[306]. - Livestreaming ecommerce accounted for 99.61% of total revenue, generating approximately $60.6 million for the nine months ended September 30, 2025, compared to $70.9 million in 2024[294][308]. - The net loss for the period from continuing operations was $11.2 million for the nine months ended September 30, 2025, compared to a loss of $8.8 million in 2024[306]. - Revenue from livestreaming e-commerce decreased to $60.6 million for the nine months ended September 30, 2025, down 14.5% from $70.9 million in 2024[317]. - Loss before taxation increased to $11.2 million for the nine months ended September 30, 2025, up 27.3% from a loss of $8.8 million in 2024[329]. - Net loss attributable to equity holders was $10.8 million for the nine months ended September 30, 2025, compared to $8.5 million in 2024[331]. Revenue Sources - The business management and consulting segment generated $0.2 million in revenue for the nine months ended September 30, 2025, a significant increase from $44,000 in the same period of 2024[309]. - Revenue from DOU+ was nil in 2025, compared to $25.3 million in 2024, due to regulatory changes affecting advertising expenses[318]. - Revenue from business management and consulting services increased to $0.2 million for the nine months ended September 30, 2025, from $44,000 in 2024, representing a 440.9% increase[319]. Cost Management - The cost of revenues decreased from $68.5 million to $60.7 million for the nine months ended September 30, 2025, reflecting a reduction in operational costs[304]. - Total operating costs and expenses for continuing operations were $9.3 million for the nine months ended September 30, 2025, down from $12.7 million in 2024[307]. - Selling and distribution expenses decreased by 67.1% to $1.1 million for the nine months ended September 30, 2025, from $3.4 million in 2024[326]. - Administrative expenses decreased by 14.5% to $7.2 million for the nine months ended September 30, 2025, compared to $8.4 million in 2024[327]. - Cost of revenues for livestreaming e-commerce was $60.7 million for the nine months ended September 30, 2025, down from $68.3 million in 2024[320]. Strategic Changes - The company ceased operations in the DOU+ sector entirely in 2025, resulting in a revenue drop from $25.3 million in 2024 to $0 in 2025 due to regulatory changes[295]. - The company completed the divestiture of its ceramic tile manufacturing business on April 28, 2023, marking a strategic shift towards high-growth technology areas[299]. - The company has expanded its livestreaming ecommerce reach to second and third tier cities in China, where conversion rates are reportedly high[292]. - The SaaS platform for livestreaming ecommerce is expected to provide value-added services, although its official launch is pending regulatory clarifications[293]. Cash Flow and Financing - Net cash used in operating activities was $15.5 million for the year ended December 31, 2024, an increase of $7.0 million from $8.5 million in 2023[373]. - Net cash generated from financing activities was $3.3 million for the nine months ended September 30, 2025, a decrease from $12.4 million for the same period in 2024, primarily due to a $5.5 million decrease in equity finance inflow[377]. - The Company entered into a securities purchase agreement to sell 1,727,941 Class A ordinary shares at a price of $1.36, generating gross proceeds of approximately $2.35 million for business expansion in the U.S.[356]. Assets and Liabilities - Cash and bank balances increased to $1.9 million as of September 30, 2025, compared to $1.0 million as of December 31, 2024[379]. - Total outstanding note payables amounted to $2.4 million as of September 30, 2025[380]. - The company's total contractual obligations as of September 30, 2025, were $3.83 million, with $2.89 million due within one year[386]. - The net carrying amount of inventories as of September 30, 2025, was $5,000, compared to $0 as of December 31, 2024[420]. Market and Economic Conditions - The general annual inflation rate in China was approximately 2.0% in 2025, which may impact the company's profitability[388]. - Nearly all monetary assets and liabilities were denominated in RMB as of September 30, 2025, with some bank balances and borrowings in US dollars, highlighting potential foreign currency risk as the company expands into overseas markets[563]. - The Renminbi's exchange rate is influenced by China's political and economic conditions, with the People's Bank of China intervening to maintain stability, which could lead to significant fluctuations in the future[564]. - Limited hedging transactions are available in China to mitigate exchange rate fluctuations, and the company currently has no intention to enter into currency hedging transactions[565].

Financial Performance - Total net revenues for the six months ended December 31, 2025, increased to $848.68 million, up from $763.83 million in the same period of 2024, representing an increase of 11.1%[11] - Gross profit for the six months ended December 31, 2025, was $274.81 million, compared to $268.65 million for the same period in 2024, reflecting a growth of 2.4%[11] - Net income for the six months ended December 31, 2025, rose to $59.26 million, compared to $55.76 million in the prior year, marking an increase of 6.7%[11] - The company reported a diluted earnings per share of $3.39 for the six months ended December 31, 2025, up from $3.27 in the same period of 2024, an increase of 3.7%[11] - Basic earnings per share for the six months ended December 31, 2025, was $3.52, up from $3.33 in 2024, reflecting a growth of 5.7%[22] - The company reported a segment income from operations of $97,472 for the six months ended December 31, 2025[100] Cash and Liquidity - Cash and cash equivalents decreased to $106.41 million as of June 30, 2025, down from $336.72 million at December 31, 2024[10] - Net cash provided by operating activities for the six months ended December 31, 2025, was $79.337 million, significantly higher than $15.388 million in 2024[18] - Cash and cash equivalents at the end of the period totaled $336.722 million, with approximately 32% held by foreign subsidiaries[24] - Net cash provided by financing activities was $172.6 million for YTD Q2 fiscal 2026, compared to $89.2 million in the same prior-year period, driven by net proceeds of $562.9 million from the issuance of 2031 Notes[146] - Cash used in investing activities was $21.4 million for YTD Q2 fiscal 2026, a decrease from $97.6 million in the same prior-year period, mainly due to a prior-year business acquisition[145] Expenses and Liabilities - Total current liabilities increased to $696.94 million as of June 30, 2025, compared to $535.36 million at December 31, 2024, indicating a rise of 30.1%[10] - Operating expenses for the six months ended December 31, 2025, were $182.95 million, slightly up from $180.37 million in the same period of 2024, an increase of 1.4%[11] - Total interest and other expense for the six months ended December 31, 2025, was $(18,111) thousand, compared to $(15,978) thousand for the same period in 2024, reflecting a 7.1% increase[31] - The company recognized $5.6 million in impairment, restructuring, and other charges during the six months ended December 31, 2025, including $1.0 million for asset impairment and $1.1 million for employee terminations[55] Research and Development - Research and development expenses for the six months ended December 31, 2025, were $40.19 million, compared to $36.03 million in the same period of 2024, reflecting an increase of 11.9%[11] - Research and development expenses for the three months ended December 31, 2025, totaled $19,759, reflecting the company's commitment to innovation[97] - Research and development expenses rose by $1.5 million to $19.8 million in Q2 fiscal 2026, reflecting increased compensation costs for new product development initiatives[125] Acquisitions and Assets - The company acquired a provider of military and surveillance solutions for approximately $76 million, with total purchase consideration of $85.7 million allocated to assets acquired[38] - The acquisition date fair value of total assets acquired was $113.9 million, including $30.7 million in goodwill and $47.3 million in other intangible assets[38] - Goodwill as of December 31, 2025, was $385,747 thousand, down from $387,393 thousand as of June 30, 2025, reflecting a decrease of 0.4%[42] - Total intangible assets increased from $261,829 thousand as of June 30, 2025, to $268,083 thousand as of December 31, 2025[43] Shareholder Activities - The company repurchased 546,945 shares of common stock for a total price of $146.1 million, with 643,611 shares remaining available for repurchase under the authorized program[80] - Stock-based compensation expense for the six months ended December 31, 2025, was $13.250 million, down from $14.931 million in 2024[75] - As of December 31, 2025, total unrecognized compensation cost related to share-based compensation grants was estimated at $20.4 million[75] Taxation - The effective tax rates for the six months ended December 31, 2024 and 2025 were 22.9% and 19.7%, respectively, with net discrete tax benefits recognized of $1.7 million in 2025[92] - The effective tax rate decreased from 23.3% in Q2 fiscal 2025 to 19.5% in Q2 fiscal 2026, with a provision for income taxes of $9.4 million[128] Market and Economic Factors - The company faces uncertainties related to global economic factors, including inflation, interest rates, and geopolitical tensions, which may impact future performance[113] - The company is evaluating the financial impact of the One Big Beautiful Bill Act, which may affect its effective tax rate and deferred tax balances in future periods[93] Segment Performance - Security division revenues rose by 15.4% year-over-year to $334.7 million, with product revenues increasing by approximately $17.7 million and service revenues by $27.0 million[120] - Security division revenues for the six months ended December 31, 2025, increased by 14.5% to $589.0 million, driven by growth in both product and service revenues[130] - The company reported total revenues of $419.82 million for the three months ended December 31, 2024, with external customer revenue from the Security division at $289.99 million[95]

Revenue Growth - Revenue increased by 11% to $1,042.2 million for the three months ended December 31, 2025, driven by external revenue growth across all reportable segments [136]. - Organic constant-currency revenue growth was 4% for the same period, excluding the impact of acquisitions and divestitures [136]. - Total revenue for the six months ended December 31, 2025, was $1,905.5 million, an increase of 9% compared to the prior year [136]. - For the three and six months ended December 31, 2025, reported revenue growth was $103.0 million and $161.4 million, primarily driven by the Vista and PrintBrothers segments [149]. - Vista revenue increased by $21.2 million and $41.0 million for the three and six months ended December 31, 2025, with significant growth in the PPAG and packaging and labels categories [149]. - PrintBrothers achieved a reported revenue growth of 26% for the three months and 21% for the six months ended December 31, 2025, with organic constant-currency revenue growth of 6% and 7%, respectively [175][176]. - The Print Group's revenue growth was 16% for both the three and six months ended December 31, 2025, positively impacted by currency fluctuations of 9% and 8%, resulting in constant-currency revenue growth of 7% and 8% [178][180]. - National Pen's revenue growth was 15% for the three months and 13% for the six months ended December 31, 2025, with constant-currency revenue growth of 10% and 9%, respectively [182][183]. - All Other Businesses reported an 11% revenue growth for the three months and 10% for the six months ended December 31, 2025, with a positive impact from currency fluctuations of 1% in both periods [186][187]. Income and Expenses - Operating income increased by $7.1 million to $88.1 million for the three months ended December 31, 2025 [135]. - Net income decreased by $12.1 million to $49.5 million for the three months ended December 31, 2025, partly impacted by lower unrealized hedging gains [138]. - Adjusted EBITDA increased by $6.6 million to $138.8 million for the three months ended December 31, 2025, benefiting from revenue growth and currency effects [139]. - Adjusted free cash flow decreased by $1.3 million to $106.6 million due to increased capital expenditures and software development costs [141]. - Year-over-year cost of revenue increased by $65.2 million and $103.0 million, driven by higher internal manufacturing costs and shipping costs [152]. - Technology and development expenses rose by 7% and 6% year-over-year for the three and six months ended December 31, 2025, totaling $89.1 million and $174.0 million, respectively [155]. - Marketing and selling expenses increased by 10% and 7% year-over-year for the three and six months ended December 31, 2025, totaling $246.2 million and $456.6 million, respectively [155]. - General and administrative expenses increased by 6% and 5% year-over-year for the three and six months ended December 31, 2025, totaling $60.2 million and $114.2 million, respectively [155]. - Interest expense, net decreased by $2.2 million and $5.5 million year-over-year for the three and six months ended December 31, 2025, due to a lower weighted average interest rate [166]. - Income tax expense for the three months ended December 31, 2025, was $13.3 million, with an effective tax rate of 21.2%, down from 25.6% in the prior year [167]. - Total other income, net for the three months ended December 31, 2025, was $1.7 million, significantly lower than $31.7 million in the prior year, primarily due to currency exchange rate volatility [163]. Segment Performance - The largest contributor to organic constant-currency revenue growth came from the Vista business, driven by growth across all major markets [134]. - Vista reported a revenue growth of 7% for both the three and six months ended December 31, 2025, with a constant-currency revenue growth of 5% after accounting for a 2% positive impact from currency fluctuations [172]. - Vista's segment EBITDA increased by $9.8 million and $18.6 million for the three and six months ended December 31, 2025, primarily due to gross profit growth of $19.3 million and $34.7 million, respectively [174]. - PrintBrothers' segment EBITDA increased by $4.9 million and $10.5 million for the three and six months ended December 31, 2025, benefiting from currency fluctuations of $2.3 million and $3.9 million, respectively [177]. - The Print Group's segment EBITDA increased by $4.2 million and $4.8 million for the three and six months ended December 31, 2025, with positive impacts from currency fluctuations of $1.8 million and $2.9 million [181]. - National Pen's segment EBITDA increased by $2.2 million and $4.4 million for the three and six months ended December 31, 2025, supported by positive currency fluctuations of $2.2 million [184]. Financial Obligations and Debt - As of December 31, 2025, total contractual obligations amount to $2,585.4 million, with $249.6 million due within one year and $1,400.7 million due within 1-3 years [198]. - The company has unrecorded purchase commitments of $368.7 million, including $227.1 million for third-party cloud services and $78.8 million for third-party fulfillment and digital services [201]. - The company has $1,067.4 million in variable-rate debt, with a potential $7.7 million increase in interest expense over the next 12 months if rates rise by 100 basis points [217]. - The company completed a private placement of $525.0 million in senior unsecured notes due 2032, bearing interest at 7.375% per annum [203]. - The company has $15.5 million in other debt obligations due on various dates through September 2037 [205]. - As of December 31, 2025, the company has $42.9 million in present value of lease installments not yet due under finance leases [206]. - The company has a senior secured revolving credit facility of $250.0 million, with $232.4 million unused as of December 31, 2025 [202]. - The company is in compliance with all covenants under its Restated Credit Agreement and the indenture governing its 2032 Notes as of December 31, 2025 [204]. Currency and Hedging - The U.S. tariff environment remains fluid, impacting pricing strategies and supply chain optimization efforts [130]. - The company aims to reduce the impact of adverse currency exchange rate movements through the use of derivatives, although this does not entirely eliminate the risk [219]. - Non-U.S. dollar revenues and expenses may lead to significant impacts on net income and non-GAAP financial metrics, such as adjusted EBITDA, when translated to U.S. dollars [219]. - The company's currency hedging objectives focus on reducing volatility in forecasted U.S. dollar-equivalent adjusted EBITDA to maintain stability on incurrence-based debt covenants [219]. - Adjusted EBITDA excludes non-cash items like depreciation and amortization, which may lead to increased volatility in GAAP results due to the hedging approach [219]. - The most significant net currency exposures by volume are in the Euro and GBP [219]. - The company executes currency derivatives contracts that do not qualify for hedge accounting, leading to potential volatility in consolidated statements of operations [220]. - Unrealized gains and losses from outstanding contracts may impact other income, net, affecting the company's financial statements [220]. - Realized gains and losses are recognized in other income, net, while the offsetting economic gains and losses are reported in the underlying activity line item, such as revenue [220].

Financial Performance - Net sales for Q2 2026 were $2,861,379, a decrease of $695,707 or 19.6% from $3,557,086 in Q2 2025[2] - The company reported a net loss of $565,407 for Q2 2026, compared to a net income of $94,142 in Q2 2025, resulting in a basic and diluted net loss per share of $0.06[2] - For the first six months of fiscal year 2026, net sales increased by $173,203 or 2.6% to $6,932,157 compared to $6,758,954 in the same period last year[3] - Selling, general and administrative expenses rose to $1,845,384 in Q2 2026, compared to $1,546,741 in Q2 2025[9] - The loss from operations for Q2 2026 was $1,014,578, significantly higher than the loss of $141,784 in Q2 2025[9] - Total other income for Q2 2026 was $451,931, compared to $238,686 in Q2 2025, contributing to a net loss before tax of $562,647[9] Gross Margin and Costs - The gross margin decreased by 260 basis points from 38.1% in the first half of fiscal year 2025 to 35.5% in the first half of fiscal year 2026, primarily due to high tariffs on products sourced from China[4] - The company anticipates continued challenges due to economic fluctuations and trade tensions, particularly with tariffs affecting product costs[7] Direct-to-Consumer Business - The direct-to-consumer (DTC) business accounted for approximately 25% of total sales and experienced a year-over-year growth of 13%[4] Share Information - The weighted-average number of basic shares outstanding was 9,462,416 for Q2 2026, compared to 9,355,686 for Q2 2025[9]

(Mark One) Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission file number 1-11437 LOCKHEED MARTIN CORPORATION (Exact name of registrant as specified in its charter) (State or other j ...

Earnings Performance - Q4 2025 earnings per diluted share (EPS) was $1.39, up from $1.04 in Q4 2024; full-year 2025 EPS was $5.13, compared to $3.23 in 2024[6] - Operating income for Q4 2025 was $135,574,000, up 23% from $110,427,000 in Q4 2024[24] - Net income for the year ended December 31, 2025, was $403,299,000, a 50% increase compared to $268,314,000 in 2024[25] - Basic and diluted earnings per share for Q4 2025 were $1.39, a 34% increase from $1.04 in Q4 2024[24] Assets Under Management - Total assets under management (AUM) reached a record $902.6 billion, an increase of $73.0 billion or 9% from $829.6 billion at the end of 2024[6] - Money market AUM was a record $682.6 billion, up $52.3 billion or 8% from $630.3 billion at the end of 2024[8] - Equity assets increased to $97.9 billion, up $18.5 billion or 23% from $79.4 billion at the end of 2024[4] - Fixed-income assets were $100.1 billion, up $2.0 billion or 2% from $98.1 billion at the end of 2024[5] - Total managed assets reached $902,584 million as of December 31, 2025, an increase from $871,200 million in the previous quarter[36] - Total long-term assets increased to $219,980 million, up from $218,433 million in the prior quarter[36] - Average Managed Assets in the Equity asset class rose to $96,404 million, a 17% increase from $82,247 million in December 2024[37] - Fixed-Income assets grew to $100,855 million, reflecting an increase of 2% from $98,254 million year-over-year[37] - Money Market assets reached $654,635 million, up 8.9% from $601,169 million in the previous year[37] - Total Long-Term Assets amounted to $219,066 million, a 7.8% increase compared to $203,189 million in December 2024[37] - Separate Account assets totaled $264,425 million, slightly up from $252,847 million, indicating a growth of 4.6%[37] - The company reported a decline in Alternative / Private Markets assets to $18,971 million, down 4% from $19,754 million in December 2024[37] - The Multi-Asset category saw a slight decrease to $2,836 million from $2,934 million, a decline of 3.3% year-over-year[37] Revenue and Sales - Revenue for Q4 2025 increased by $58.2 million or 14%, primarily due to higher average money market and equity assets[9] - Total revenue for Q4 2025 reached $482,833,000, a 14% increase from $424,683,000 in Q4 2024[24] - Investment advisory fees for the year ended December 31, 2025, were $1,199,236,000, reflecting a 9% growth from $1,097,866,000 in 2024[25] - The company reported a net sales of $1,518,000,000 in Q4 2025, reversing a net redemption of $2,520,000,000 in Q4 2024[27] - Sales for the quarter amounted to $10,419 million, a rise from $9,018 million in the previous quarter[34] - The company reported a net exchange of $33 million for the quarter, compared to $17 million in the previous quarter[34] Operating Expenses - Operating expenses increased by $33.0 million or 11%, mainly due to higher distribution expenses related to increased money market fund assets[10] - Total operating expenses for the year ended December 31, 2025, were $1,286,781,000, a slight increase of 1% from $1,270,626,000 in 2024[25] Dividends - The board declared a quarterly dividend of $0.34 per share, payable on February 13, 2026[3] - The company declared dividends of $0.34 per share for Q4 2025, compared to $0.31 in Q4 2024[24] Market Trends and Outlook - Federated Hermes derived 53% of its revenue from money market assets in 2025, with 45% from long-term assets[14] - The company anticipates continued growth in managed assets driven by strategic market expansions and new product offerings[38]

(Mark One) Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-5828 CARPENTER TECHNOLOGY CORPORATION (Exact name of Registrant as specified in its Charter) Delaware 23-0458 ...

Financial Performance - Primis Financial Corp. reported net income of $30 million, or $1.20 per diluted share, for Q4 2025, compared to a net loss of $23 million, or $0.94 per diluted share, in Q4 2024[2]. - Noninterest income for Q4 2025 was $50 million, significantly up from $13 million in Q4 2024, driven by a $51 million gain from a sale leaseback transaction[16]. - Net income attributable to Primis' common shareholders for Q4 2025 was $29,540 thousand, compared to a loss of $23,335 thousand in Q4 2024[45]. - Non-GAAP adjusted net income for Q4 2025 was $2,359,000, a significant improvement from a loss of $24,148,000 in Q4 2024[51]. - Pre-tax pre-provision earnings for Q4 2025 reached $38,577,000, up from $4,225,000 in Q4 2024[51]. - Income tax expense for Q4 2025 was $6,725,000, compared to a benefit of $(5,917,000) in Q4 2024[51]. Asset and Loan Growth - Total assets increased by 10% year-over-year to $4.047 billion as of December 31, 2025, up from $3.690 billion in 2024[3]. - Gross loans held for investment rose by 14% to $3.284 billion, compared to $2.887 billion in the previous year[3]. - Total loans receivable increased to $3,283,683 thousand in Q4 2025, up from $3,200,234 thousand in Q3 2025, representing a growth of 2.6%[47]. - Commercial loans rose to $970,492 thousand in Q4 2025, up from $915,158 thousand in Q3 2025, marking an increase of 6.0%[47]. - Total real estate loans reached $1,991,209 thousand in Q4 2025, a slight increase from $1,958,437 thousand in Q3 2025, representing a growth of 1.7%[47]. Deposit and Funding - Noninterest bearing deposits increased by 26% to $554 million, representing 16.3% of total deposits[3]. - Total deposits rose to $3,395,585 thousand in Q4 2025, up from $3,171,035 thousand in Q4 2024, reflecting a year-over-year increase of 7.1%[43]. - Total liabilities increased to $3,583,607 thousand in Q4 2025, up from $3,473,976 thousand in Q3 2025, representing a growth of 3.2%[48]. - The cost of interest-bearing deposits was 2.6% in Q4 2025, down from 2.8% in Q3 2025, showing a decrease of 0.2 percentage points[49]. Credit Quality and Allowance - The allowance for credit losses was 1.40% of loans held for investment at the end of Q4 2025, down from 1.86% at the end of Q4 2024[24]. - Provision for credit losses in Q4 2025 was $2,439 thousand, a significant decrease from $33,483 thousand in Q4 2024, indicating improved credit quality[45]. - Non-performing assets totaled $86,536 thousand in Q4 2025, slightly down from $86,686 thousand in Q3 2025, indicating a decrease of 0.2%[47]. - The allowance for credit losses at the end of Q4 2025 was $(45,883) thousand, compared to $(44,766) thousand at the end of Q3 2025, reflecting an increase in provisions[47]. Efficiency and Ratios - Return on average assets for Q4 2025 was 2.94%, a significant increase from 0.70% in Q3 2025 and 0.26% in Q2 2025[39]. - Efficiency ratio for Q4 2025 was 52.14%, a notable improvement from 78.81% in Q3 2025 and 73.92% in Q2 2025[39]. - Common equity to assets ratio increased to 10.45% in Q4 2025, compared to 9.66% in Q3 2025[40]. - Return on average common equity was 29.46%, a significant increase from 7.13% in the previous period[52]. Strategic Initiatives - The company is focused on growth strategies including the Panacea Financial Division and digital banking platform[35]. - Approved lines for mortgage warehouse ended 2025 at $1.2 billion across 125 customers[27]. - The company reported a gain on sale-leaseback of $50,573 thousand in Q4 2025, contributing positively to noninterest income[45].

Financial Performance - Covenant Logistics Group reported a loss of $0.73 per diluted share for Q4 2025, with adjusted income of $0.31 per diluted share excluding impairment charges [3]. - Total revenue for Q4 2025 was $295.4 million, a 6.5% increase from $277.3 million in Q4 2024 [7]. - Freight revenue, excluding fuel surcharge, was $270.6 million, up from $251.1 million in the same quarter last year [7]. - The operating loss for Q4 2025 was $24.2 million, compared to an operating income of $8.6 million in Q4 2024 [7]. - The company reported a net loss of $18,257,000 in Q4 2025, compared to a net income of $6,720,000 in Q4 2024 [31]. - Total revenue for the three months ended December 31, 2025, was $188,943,000, an increase from $190,418,000 in the same period of 2024 [40]. - The adjusted net income for the year ended December 31, 2025, was $41,252,000, down from $54,977,000 in 2024, reflecting a decrease of approximately 25% [37]. - The diluted loss per share (EPS) for Q4 2025 was $(4), compared to an EPS of $0.24 in Q4 2024 [37]. Revenue Segments - Managed Freight segment revenue increased by 28.8% year-over-year to $80.2 million, driven by the integration of newly acquired assets [14]. - The Dedicated segment saw a 12.6% increase in freight revenue to $102.3 million, supported by a 6.3% increase in average total tractors [10]. - For the quarter, Warehousing's freight revenue increased by $1.1 million to $25.5 million, while segment operating income declined by $1.4 million to $1.4 million compared to Q4 2024 [17]. - Total revenue for the combined segments reached $776.474 million, with a breakdown of $373.294 million for GAAP and $403.180 million for non-GAAP [42]. Operating Efficiency - The average freight revenue per tractor per week in the truckload segment decreased by 7.8% to $5,327 due to lower utilization and revenue per total mile [9]. - Operating expenses on a non-GAAP adjusted basis increased by approximately 6% year-over-year, reflecting inflationary pressures and changes in business mix [11]. - The segment operating income for the combined truckload and freight segments was $10,705,000 for Q4 2025, compared to $19,121,000 in Q4 2024, indicating a decline of approximately 44% [40]. - The adjusted segment operating ratio improved to 94.4% in Q4 2025 from 95.2% in Q4 2024, showing enhanced operational efficiency [40]. - The company aims to improve operational efficiency, targeting a reduction in the operating ratio to below 94% in the next fiscal year [42]. Debt and Capital Expenditures - Total indebtedness increased by $76.7 million to approximately $296.3 million as of December 31, 2025, with net indebtedness to total capitalization rising to 42.3% from 33.4% year-over-year [18]. - The increase in net indebtedness was primarily due to $46.3 million in acquisition-related payments and $36.2 million in stock repurchases [19]. - The company anticipates net capital equipment expenditures of $40 million to $50 million in 2026, a significant reduction compared to 2025 [22]. - The leverage ratio increased to 2.89 in 2025 from 1.65 in 2024, indicating higher indebtedness relative to earnings [33]. Strategic Initiatives - The company acquired a truckload brokerage business with approximately $130 million in revenue, enhancing its logistics platform and customer base [6]. - The company plans to exit unprofitable business relationships and focus on high-value freight to improve free cash flow and balance sheet leverage in 2026 [5]. - The company aims to operate more efficiently and refine capital allocation while looking for new opportunities in 2026 [24]. - The company plans to focus on market expansion and new product development in the upcoming fiscal year [42]. Impairments and Adjustments - The fourth quarter included approximately $19.4 million in non-cash impairment charges related to goodwill and tractors pulled from service [22]. - Total adjustments for the fourth quarter amounted to $35.1 million, including $10.7 million for impairment of goodwill and $11.6 million for large claims settlement [23]. - The company incurred total adjustments before taxes amounting to $35,061,000 for Q4 2025, compared to $9,130,000 in Q4 2024 [37]. - The amortization of intangibles for the year ended December 31, 2025, was $10,770,000, up from $9,488,000 in 2024, indicating increased intangible asset amortization [37]. Operational Metrics - The average age of tractors increased to 24 months, with expectations for it to range from 24 to 26 months going forward [21]. - Average miles per tractor per period decreased to 28,795 in Q4 2025, down 6.9% from 26,812 in Q4 2024 [32]. - Average freight revenue per loaded mile decreased to $2.91 in Q4 2025, down 8.2% from $3.15 in Q4 2024 [32]. - Employee separation costs amounted to $1.302 million, indicating restructuring efforts within the company [42]. - The company incurred transaction costs of $149, which may relate to strategic acquisitions or partnerships [42]. - The abandonment of long-lived software resulted in a cost of $1.884 million, reflecting ongoing adjustments in technology investments [42].