User Engagement and Active Users - Zedge reported 22.2 million monthly active users (MAU) as of October 31, 2025, a key performance indicator for the Zedge App[91] - As of October 31, 2025, Zedge had approximately 1.1 million active subscribers for its Zedge+ subscription service, which offers an ad-free experience[94] - Monthly Active Users (MAU) for the Zedge App decreased by 11.2% to 22.2 million for the three months ended October 31, 2025, compared to 25.0 million in the same period last year[107] - Emojipedia recorded 43.6 million monthly page views and approximately 7.2 million MAU as of October 31, 2025, with 42.1% of users in developed markets[101] Revenue and Financial Performance - Total revenue for the three months ended October 31, 2025, increased by 5.8% to $7,610,000 compared to $7,194,000 in the same period last year[120] - Subscription revenue increased by 28.6% to $1,520,000 for the three months ended October 31, 2025, compared to $1,182,000 in the same period last year[121] - Digital goods and services revenue declined by 27.3% to $468,000 for the three months ended October 31, 2025, primarily due to a 28.4% decrease in Monthly Active Payers (MAP) for GuruShots[127] - Average Revenue Per Monthly Active User (ARPMAU) for the Zedge App increased by 29.2% to $0.0991 for the three months ended October 31, 2025, driven by higher advertising prices and strong subscription revenue growth[108] Cost and Expenses - Direct cost of revenues increased by 20.4% to $555,000 for the three months ended October 31, 2025, compared to $461,000 in the same period last year, reflecting higher data center costs[130] - SG&A expenses decreased by 13.0% to $5.9 million for the three months ended October 31, 2025, compared to $6.8 million in the prior year, primarily due to lower personnel-related expenses and the expiration of an $8 million retention bonus program[132] - Stock-based compensation expense fell by 72.6% to $104,000 for the three months ended October 31, 2025, down from $379,000 in the same period last year, mainly due to the full amortization of $4 million related to the GuruShots acquisition[134] - Depreciation and amortization expenses decreased by 43.3% to $216,000 for the three months ended October 31, 2025, compared to $381,000 in the prior year, largely due to a $0.8 million impairment charge recognized in the second quarter of fiscal 2025[136] Strategic Initiatives - The company introduced pAInt, a generative AI wallpaper maker, in fiscal 2023, enhancing user engagement through text-to-image and image-to-image capabilities[92] - The company is developing DataSeeds.AI, which creates custom datasets for enterprise AI teams, leveraging its creator ecosystem[95] - Zedge's monetization strategy includes advertising revenue, in-app sales of Zedge Credits, and subscription offerings[94] - Zedge's strategy includes reducing paid user acquisition costs for GuruShots to improve return on ad spend[99] Market and Economic Conditions - The ongoing geopolitical tensions, particularly in Israel, pose risks to Zedge's operations and workforce stability[84] - The Creator Economy, which Zedge is part of, is estimated to be worth between $191 billion and $250 billion globally in 2025[88] Shareholder and Customer Concentration - The company repurchased 238,460 shares of Class B common stock for approximately $776,000 during the three months ended October 31, 2025, under its share repurchase program[158] - In the three months ended October 31, 2025, one large customer represented 34% of the company's revenue, compared to 30% in the same period of 2024[162] - As of October 31, 2025, two customers accounted for 42% and 14% of the accounts receivable balance, respectively[162] - At July 31, 2024, three customers represented 43%, 12%, and 11% of the accounts receivable balance, indicating a concentration of revenue sources[162] Income and Taxation - Income tax expense rose by 375.5% to $233,000 for the three months ended October 31, 2025, compared to $49,000 in the prior year, reflecting a higher effective tax rate of 22.8%[142] Segment Performance - Segment income from operations for the Zedge Marketplace increased by 66.4% to $1.6 million for the three months ended October 31, 2025, compared to $0.9 million in the prior year, attributed to higher revenue and lower SG&A[148] - Total segment income improved to $914,000 for the three months ended October 31, 2025, compared to a loss of $457,000 in the prior year, marking a 300.0% increase[147] Liquidity and Cash Position - Cash and cash equivalents stood at $18.5 million as of October 31, 2025, with working capital of $14.6 million, indicating stable liquidity compared to $18.6 million and $14.7 million at July 31, 2025[150]

Company Overview - AMREP Corporation reported its results for the three and six month periods ended October 31, 2025[5]. - The company is listed on the New York Stock Exchange under the symbol AXR[3]. - The report does not indicate any emerging growth company status for AMREP Corporation[4]. Financial Reporting - The press release detailing the financial results was issued on December 12, 2025[5]. - Financial statements and exhibits related to the report are included in the filing[7]. - The Chief Financial Officer, Adrienne M. Uleau, signed the report on behalf of AMREP Corporation[12]. - The press release is incorporated by reference in the current report[6]. - The report does not provide specific financial metrics or performance indicators in the available content[5]. - The filing does not include any forward-looking statements or performance guidance[5]. Product and Market Information - There is no mention of new products, technologies, or market expansion strategies in the current report[5].

Financial Performance - For the three months ended October 31, 2025, the Company reported net income of $1,200,000, or $0.22 per diluted share, a decrease from $4,042,000, or $0.75 per diluted share, for the same period in 2024, representing a decline of 70.3%[67] - Total revenues for the three months ended October 31, 2025, were $9,398,000, down 21% from $11,906,000 in the same period of 2024[69] - The cost of revenues for the three months ended October 31, 2025, was $6,323,000, a decrease of 8.8% from $6,937,000 in the same period of 2024[75] - General and administrative expenses for the six months ended October 31, 2025 totaled $3,804,000, reflecting a 10% increase from $3,456,000 in 2024[80] - Net cash provided by operating activities for the six months ended October 31, 2025 was $5,273,000, down from $10,509,000 in 2024[84] - The provision for income taxes for the six months ended October 31, 2025 was $2,288,000, compared to a provision of $887,000 for the same period in 2024[82] Revenue Breakdown - Land sale revenues decreased by 86% to $825,000 for the three months ended October 31, 2025, compared to $5,857,000 in the same period of 2024[69] - Home sale revenues increased by 45% to $7,725,000 for the three months ended October 31, 2025, compared to $5,334,000 in the same period of 2024[69] - For the three months ended October 31, 2025, home sale gross margins increased to 25% compared to 20% for the same period in 2024[79] - Land sale gross margins improved to 80% for the three months ended October 31, 2025, compared to 60% for the same period in 2024[76] Real Estate Activity - The Company had 59 homes in production as of October 31, 2025, with 16 homes under contract, representing $7,446,000 in expected revenues[73] - The Company sold 467 acres of undeveloped land in Sandoval County, New Mexico, generating $2,174,000 in revenue during the six months ended October 31, 2025[70] - The Company sold 501.8 acres of undeveloped property in Sandoval County, New Mexico during the six months ended October 31, 2025[86] - The Company leased 28 homes to residential tenants as of October 31, 2025, an increase from 21 homes as of April 30, 2025[87] Cash and Assets - The Company had cash, cash equivalents, and restricted cash of $45,111,000 as of October 31, 2025, a 13% increase from $39,921,000 as of April 30, 2025[84] - Real estate inventory increased by 3% to $68,584,000 as of October 31, 2025, up from $66,750,000 as of April 30, 2025[86] - Interest income, net for the six months ended October 31, 2025 was $915,000, compared to $857,000 for the same period in 2024[81] Market Conditions - The Company reduced the number and scope of its active land development projects due to market headwinds, which is expected to result in reduced revenues from land sales in 2026 compared to 2025[68] - Future economic conditions and demand for land and homes remain uncertain due to various macroeconomic factors, including inflation and mortgage interest rates[68] Debt Management - Notes payable decreased from $26,000 as of April 30, 2025 to $23,000 as of October 31, 2025 due to principal debt repayments[85]

Financial Performance - Kroger reported Q3 2025 sales of $33.859 billion, a 0.7% increase from $33.634 billion in Q3 2024, with sales excluding fuel at $30.689 billion, up 1.3% from $30.299 billion[90]. - Adjusted net earnings attributable to Kroger for Q3 2025 were $697 million, a decrease of 3.1% compared to $719 million in Q3 2024, with adjusted net earnings per diluted share at $1.05, up 7.1% from $0.98[90]. - Kroger's operating profit for Q3 2025 was reported at a loss of $1.541 billion, a decline of 286.1% compared to a profit of $828 million in Q3 2024[90]. - Net earnings attributable to The Kroger Co. for Q3 2025 were $(1,320) million, a decrease from $618 million in Q3 2024[106]. - Adjusted net earnings attributable to The Kroger Co. for Q3 2025 were $697 million, down 3.1% from $719 million in Q3 2024[106]. - Operating profit for Q3 2025 was $(1.5) billion, while it was $644 million for the first three quarters of 2025, impacted by the $2.6 billion impairment[97]. - Total sales for the first three quarters of 2025 increased by 0.1% to $112,917 million compared to $112,815 million in the same period of 2024[113]. - Gross profit for the third quarter of 2025 was $7,735 million, up from $7,534 million in the same quarter of 2024[124]. eCommerce Growth - Kroger anticipates eCommerce sales to grow at a double-digit rate, outpacing other food at home sales, driven by investments in major store projects and enhanced eCommerce capabilities[87]. - eCommerce sales rose by 17% in Q3 2025 and 16% in the first three quarters of 2025 compared to the same periods in 2024, with growth led by strong demand for Delivery solutions[97]. - eCommerce sales grew by 17% in Q3 2025 compared to Q3 2024, driven by a 19% increase in Delivery solutions[110]. - A strategic review of eCommerce operations led to the closure of underperforming fulfillment facilities, resulting in a $2.6 billion impairment charge, with expectations of improved eCommerce profitability moving forward[102]. Shareholder Returns - The company expects to achieve total shareholder return within a target range of 8% to 11% over time[86]. - Share repurchases in Q3 2025 amounted to $1.404 billion, significantly higher than $9 million in Q3 2024[90]. - The company returned $2.3 billion to shareholders through share repurchases and dividends in the first three quarters of 2025[97]. - The company repurchased 14.0 million shares for $947 million at an average price of $67.47 per share in the first three quarters of 2025[161]. Debt and Liquidity - The company plans to maintain a net total debt to adjusted EBITDA ratio target range of 2.30 to 2.50 while continuing to grow dividends and return excess cash to shareholders[85]. - Total debt increased by $105 million to $18.0 billion as of November 8, 2025, due to a net increase in obligations under finance leases[158]. - As of November 8, 2025, the company held $4.0 billion in cash and temporary cash investments, providing operational flexibility[164]. - As of November 8, 2025, the company expects to meet its short-term and long-term liquidity needs through cash and temporary cash investments on hand, cash flows from operating activities, and other liquidity sources[165]. - The company operates with a working capital deficit due to efficient cash use in funding operations and consistent access to capital markets[165]. - Anticipated liquidity needs include working capital for operations, pension plan commitments, interest payments, scheduled principal payments of debt, and capital investments[165]. Operating Expenses and Margins - The FIFO gross margin, excluding rent, depreciation, and amortization, increased by 0.49 basis points in Q3 2025 compared to 0.51 basis points in Q3 2024[90]. - Gross margin rates improved to 22.8% in the first three quarters of 2025 from 22.1% in 2024, primarily due to the sale of the Kroger Specialty Pharmacy business and lower supply chain costs[122]. - OG&A expenses as a percentage of sales rose to 19.8% in the first three quarters of 2025 from 17.2% in 2024, driven by increased healthcare costs and the sale of the Kroger Specialty Pharmacy business[130]. - The LIFO charge was $44 million in Q3 2025, up from $4 million in Q3 2024, and $146 million for the first three quarters of 2025, compared to $66 million in the same period of 2024, due to higher expected product cost inflation[97]. Impairments and Charges - The company recorded a significant impairment charge of $2.6 billion related to fulfillment network in the third quarter of 2025[137]. - The company recognized store closure costs of $100 million related to the planned closing of approximately 60 stores, with a commitment to reinvest savings into customer experience[96]. Cash Flow - Cash flows from operations totaled $4.7 billion for the first three quarters of 2025, a 6% increase from the same period in 2024[97]. - Cash provided by operating activities was $4.658 billion for the first three quarters of 2025, compared to $4.390 billion in the same period of 2024[150]. - Cash used in investing activities increased to $(3.015) billion in the first three quarters of 2025 from $(2.402) billion in 2024, primarily due to decreased asset sale proceeds[152].

Backlog and Revenue - Semiconductor Systems segment backlog as of October 26, 2025, was $7,105 million, representing 47% of total backlog[29] - Applied Global Services segment backlog was $7,141 million, accounting for 48% of total backlog[29] - Total backlog as of October 26, 2025, was $15,002 million, with approximately 31% not expected to be filled within the next 12 months[29] - Net revenue for fiscal 2025 was $28,368 million, an increase of $1,192 million (4%) compared to $27,176 million in fiscal 2024[149] - AGS net revenue for fiscal 2025 increased to $28.368 billion, a 4% increase from $27.176 billion in fiscal 2024[153] - Semiconductor Systems segment generated $20,798 million in revenue, representing a 4% increase from $19,911 million in fiscal 2024[149] - Applied Global Services segment revenue was $6,385 million, a 3% increase from $6,225 million in fiscal 2024[149] - Corporate and Other segment revenue increased by 14% to $1,185 million from $1,040 million in fiscal 2024[149] Financial Performance - Gross margin improved to 48.7% in fiscal 2025, up from 47.5% in fiscal 2024, reflecting favorable changes in customer and product mix[149] - Operating income for fiscal 2025 was $8,289 million, an increase of $422 million (5.4%) from $7,867 million in fiscal 2024[149] - Net income for fiscal 2025 was $6,998 million, a decrease of $179 million (2.5%) compared to $7,177 million in fiscal 2024[149] - Earnings per diluted share increased to $8.66 in fiscal 2025, up by $0.05 from $8.61 in fiscal 2024[149] Employee and Talent Management - The company employs approximately 36,500 full-time employees across 25 countries, with 46% in the Asia-Pacific region[50] - The company emphasizes the importance of attracting, developing, and retaining employees through competitive rewards and benefits, including an Employee Stock Incentive Plan and healthcare benefits[52] - Employee learning and development is structured around the 70/20/10 model, focusing on 70% on-the-job learning, 20% social/collaborative, and 10% formal training, with advanced training modalities like AI-based simulations[53] - In fiscal 2025, the company conducted an all-employee survey to measure engagement, benchmarking results against large technology companies globally to enhance employee satisfaction and collaboration[54] - The ability to attract, retain, and motivate key employees is vital for the company's success, with challenges arising from global competition for talent[99] Research and Development - Significant investments in research, development, and engineering are aimed at delivering new products and technologies ahead of demand[33] - The company is committed to ongoing investment in research and development to remain competitive, even during periods of economic uncertainty[63] - Research, development and engineering (RD&E) expenses increased to $3.570 billion, up from $3.233 billion in fiscal 2024, reflecting higher headcount and depreciation[154] - The company is committed to improving productivity in research and development activities to enhance capital efficiency[87] Market and Industry Risks - The company anticipates increased competition from domestic equipment manufacturers in China due to local government incentives[37] - The company faces risks from the cyclical nature of the semiconductor industry, which is influenced by customer demand, technology advancements, and economic conditions[60] - Global trade issues and changes in trade policies, including tariffs and export regulations, have adversely impacted the company's operations and competitiveness[67] - The U.S. government has imposed additional export regulations affecting semiconductor technology sales to China, which could limit market access and impact revenues[68] - Economic uncertainties, including inflation and interest rate changes, could lead to customer delays in purchasing equipment, negatively impacting demand and revenue[62] - Supply chain disruptions and manufacturing interruptions could lead to higher costs and excess or obsolete inventory, adversely affecting the company's ability to meet customer demand[74] - The company faces risks from geopolitical factors, including trade regulations and export controls, particularly concerning semiconductor components and rare earth minerals[79] - The semiconductor industry is characterized by rapid technological changes, requiring the company to effectively anticipate and adapt to these changes to maintain competitiveness[82] Legal and Compliance Risks - The company has received multiple subpoenas from U.S. government authorities regarding transactions with certain foreign entities, particularly related to China shipments and export controls compliance[69] - The company may incur significant legal costs and penalties due to potential violations of laws or regulations, which could adversely affect its financial condition[70] - The company is exposed to risks related to legal proceedings and investigations, which may be time-consuming and expensive[111] - The company is subject to examination by the U.S. Internal Revenue Service and other tax authorities, which may lead to litigation and affect its tax provisions[104] Financial Position and Capital Management - The company has $6.5 billion in aggregate principal amount of senior unsecured notes outstanding as of October 26, 2025[105] - The company has revolving credit facilities allowing borrowing up to approximately $4.1 billion, with no amounts outstanding as of October 26, 2025[106] - The company has credit facilities for unsecured borrowings totaling $4.1 billion, with no amounts outstanding as of October 26, 2025[179] - A short-term commercial paper program allows the issuance of up to $4.0 billion, with $100 million of commercial paper notes outstanding as of October 26, 2025[180] - The company recognized a reduction in current income taxes payable by $233 million and future income taxes payable by $548 million due to the investment tax credit from the CHIPS Act[185] - The gross liability for unrecognized tax benefits was $452 million as of October 26, 2025, with interest and penalties related to uncertain tax positions totaling $118 million[197] Corporate Governance and Internal Controls - Management concluded that internal control over financial reporting was effective as of October 26, 2025[214] - KPMG LLP audited the consolidated financial statements and reported on the effectiveness of internal control over financial reporting as of October 26, 2025[215] - No changes in internal control over financial reporting during Q4 of fiscal 2025 that materially affected its effectiveness[216] - The design of any control system is based on certain assumptions about the likelihood of future events, providing only reasonable assurance[217]

Financial Performance - The Company reported a consolidated net sales of 100% for the fiscal year 2025, with the highest sales in June at 31%[42] - The operating profit for the quarter ending December 2025 was 125%, indicating strong performance during that period[42] - The Company has experienced seasonal variations in sales, with the primary selling season occurring in the quarters ending March and June[42] - The Company reported seasonal variations in sales and profitability, with December quarter net sales at 18% of total year sales for 2025, down from 27% in 2023[42] - In the March quarter of 2025, the Company experienced a net sales increase to 28%, compared to 30% in 2023, while operating profit showed a loss of 30%[43] - The June quarter for 2025 saw net sales rise to 31%, with an operating loss of 45%, reflecting a decrease from 28% net sales and a 149% operating profit in 2023[43] - The September quarter in 2025 had net sales at 23%, with a 50% operating profit, contrasting with a 15% net sales and a (193%) operating loss in 2023[43] Employee Relations - The Company has approximately 1,300 regular, full-time employees, with 950 located in the United States and 350 outside[36] - The Company maintains a commitment to workplace safety and employee relations, considering them to be excellent[37] - The Company emphasizes the importance of attracting and retaining key employees to ensure successful execution of its mission[37] Research and Development - The Company invests significantly in research and development across its business segments, with activities conducted in multiple locations including Minnesota, Georgia, and Switzerland[27] - The Company expenses research and development costs as incurred, except for certain software development costs which are capitalized and amortized[28] - The Company invests significantly in research and development across its business segments, with activities conducted in multiple locations including Minnesota, Georgia, Canada, and Switzerland[27] Product Segments - The Fishing segment's key brands include Minn Kota, Humminbird, and Cannon, which are marketed primarily in North America through various retail channels[15] - The Diving segment competes in the premium recreational market with products sold through specialty dive stores and direct to consumers[23] - The Fishing segment includes key brands such as Minn Kota, Humminbird, and Cannon, with a focus on innovation and quality products[13] - The Camping & Watercraft segment features brands like Jetboil and Old Town, emphasizing brand awareness and product innovation through digital marketing[16] - The Diving segment markets SCUBAPRO products, competing in the premium recreational and high-performance technical diving markets[21] Supply Chain Management - The Company mitigates supply chain risks by purchasing safety stock and utilizing forecast-based supply contracts[41] - The Company mitigates supply chain risks by maintaining safety stock and utilizing forecast-based supply contracts[41] Compliance and Ethics - The Company believes it complies with various environmental laws and regulations, and expenditures on environmental compliance are not expected to have a material adverse effect on capital expenditures, earnings, or competitive position[44] - The Company is committed to ethical business practices and files an annual Form SD regarding "Conflict Minerals Disclosure" as required by the Dodd-Frank Act[45] - The Company is committed to ethical business practices and has established a "Code of Conduct" to guide its operations[45] Intellectual Property - The Company holds numerous patents and trademarks, which it actively defends to protect its intellectual property rights[39] Transparency - The Company provides free access to its financial reports and governance documents on its website, ensuring transparency for shareholders[46] Competition - The Company’s primary competitors in the Fishing segment include Lowrance, Garmin, and Power-Pole, focusing on technological innovation and product quality[30] - The Company does not believe that backlog information is material to understanding its business due to the non-binding nature of orders[35]

Network Technology Solutions - The company provides network technology solutions, including hardware, software, and services, to enhance network capacity and automation across various applications such as cloud and AI [14]. - The company aims to expand its leadership in optical networking systems, leveraging proprietary WaveLogic technology for improved performance and energy efficiency [27]. - The acquisition of Nubis Communications, Inc. is expected to enhance the company's interconnect product offerings, particularly for data center interconnect solutions [28]. - The company is focusing on integrating IP routing with coherent optical technologies to address next-generation metro and edge networking needs [29]. - The Optical Networking portfolio includes key products like the 6500 Packet-Optical Platform and Waveserver system, designed for high-capacity data transport [36]. - The Routing and Switching portfolio supports applications such as next-generation metro and residential broadband access, utilizing a service-aware IP operating system [37]. Market Demand and Competition - The demand for increased bandwidth is driven by AI workloads, requiring high-speed connectivity and influencing data center locations [18]. - The company anticipates that network operators will increasingly invest in their infrastructures to meet the growing demands for bandwidth and digital services [21]. - The competitive environment includes major players like Nokia, Huawei, Cisco, and ZTE, with many having greater financial and operational resources [55]. - The company expects competition to broaden and intensify as network operators pursue diverse network strategies and consumption models [58]. - The company faces intense competition from larger vendors with greater resources, which may impact its ability to capture market share [81]. Financial Performance - Revenue increased by 19% to $4.8 billion in fiscal 2025, up from $4.0 billion in fiscal 2024, with significant order growth in cloud and service provider segments [157]. - Total revenue increased by 18.8% in fiscal 2025 compared to fiscal 2024 [167]. - Cash generated from operations increased to $806.1 million in fiscal 2025, compared to $514.5 million in fiscal 2024 [164]. - Net income (adjusted for non-cash charges) was $586.3 million for fiscal 2025 [195]. - The company repurchased $329.7 million of its common stock under the stock repurchase program during fiscal 2025 [192]. Research and Development - Investment in research and development reached $848.3 million in fiscal 2025, an increase of 11% compared to fiscal 2024 [160]. - The company invests in research and development to enhance solutions and develop new technologies, but there is no guarantee of market acceptance for these innovations [84]. Supply Chain and Manufacturing - The company has experienced supply chain capacity shortages affecting operations and financial results, with longer than normal lead times due to unprecedented AI-related demand [96]. - The company relies on third-party manufacturers and suppliers, which exposes it to risks of supply shortages, delays, and increased costs, particularly in the electro-optical component and semiconductor industries [98]. - The company’s product manufacturing strategy relies on third-party contract manufacturers in regions such as Canada, Mexico, Thailand, Vietnam, and the United States [51]. Employee and Workforce - The global workforce consists of 9,080 employees, with approximately 98% being full-time employees as of November 1, 2025 [59]. - The fiscal 2025 employee engagement survey had a participation rate of approximately 86%, with engagement scores exceeding industry benchmarks [61]. - The company faces intense competition for qualified personnel, particularly in critical talent segments, which could hinder effective business management and strategy execution [102]. Risks and Compliance - The company is exposed to risks from geopolitical developments, including tensions between the United States and China, which could disrupt the supply chain and impact demand [106]. - Cybersecurity incidents, including ransomware attacks, pose significant risks to the company's operations and reputation, potentially leading to substantial costs and regulatory scrutiny [108]. - The company is subject to evolving regulations regarding product security and data practices, which could increase operational costs and affect compliance [110]. - Changes in tax laws and regulations could adversely impact the company's effective tax rate and overall profitability [118]. Inventory and Financial Obligations - As of November 1, 2025, the company had $826.2 million in inventory and $2.1 billion in purchase commitments, many of which are non-cancellable [96]. - The company had $2.1 billion in outstanding purchase order commitments to contract manufacturers and component suppliers for inventory as of November 1, 2025 [202]. - Fixed lease payment obligations amounted to $109.3 million, with $23.4 million payable within 12 months [203]. Stock and Shareholder Returns - As of December 5, 2025, there are approximately 140,854,735 shares of common stock outstanding, with no cash dividends paid historically and intentions to retain earnings for business use [145]. - During the fourth quarter of fiscal 2025, the company repurchased a total of 685,214 shares of common stock at an average price of $123.28 per share, totaling approximately $84.5 million [146]. - The company has a stock repurchase program authorized for up to $1.0 billion, with $670.3 million remaining under the current authorization as of November 1, 2025 [147].

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 November 2, 2025 Commission File No. 1-12597 CULP, INC. (Exact name of registrant as specified in its charter) NORTH CAROLINA 56-1001967 (State or other jurisdiction of incorporation or other organization) 410 W. English Road 5th Floor High Point, North Carolina 27262 (Address of principal executive offices) ( ...

Sales Performance - Sales for the quarter were $70,096,000, an increase of 46.8% from $47,764,000 in the comparable period of the prior year[94] - Domestic sales for the quarter were $55,224,000, up 51.7% compared to $36,409,000 in the prior year[94] - International sales for the quarter were $14,872,000, up 31.0% from $11,355,000 in the comparable period of the prior year[94] Financial Metrics - Gross profit margin for the three months ended October 31, 2025 was 28.1%, down from 29.2% in the comparable quarter of the prior year[97] - Operating expenses for the three months ended October 31, 2025 were $15,613,000, or 22.3% of sales, compared to $9,518,000, or 19.9% of sales in the prior year[98] - Net earnings for the three months ended October 31, 2025 was $2,445,000, or $0.82 per diluted share, compared to $3,008,000, or $1.01 per diluted share in the prior year[103] - The effective income tax rate for the three months ended October 31, 2025 was 26.5%, compared to 23.3% for the same period in the prior year[100] Order Backlog and Working Capital - The Company's order backlog was $192.9 million at October 31, 2025, compared to $184.4 million at October 31, 2024[96] - The Company had working capital of $67,830,000 at October 31, 2025, compared to $64,651,000 at April 30, 2025[105] Growth Strategy - The Company remains focused on growth, both organically and inorganically, and is committed to making strategic investments to support this growth[109]

Financial Performance - Revenue for the third quarter of fiscal year 2025 was $87.6 million, representing a 15.4% year-over-year growth[154] - Net Income for the third quarter was $76.5 million, compared to a loss of $(18.9) million in the same period last year, resulting in a net income margin of 87.3%[154] - Total revenue, net for the three months ended October 31, 2025, was $87.6 million, an increase of $11.7 million, or 15.4%, compared to $75.9 million for the same period in 2024[203] - Subscription and Reserve rental revenue was $77.0 million for the three months ended October 31, 2025, an increase of $10.7 million, or 16.1%, compared to $66.3 million for the same period in 2024[204] - Net income for the three months ended October 31, 2025, was $76.5 million, compared to a net loss of $18.9 million for the same period in 2024[202] - Total revenue, net for the nine months ended October 31, 2025, was $238.1 million, an increase of $8.3 million, or 3.6%, compared to $229.8 million for the same period in 2024[224] - Subscription and Reserve rental revenue was $208.2 million for the nine months ended October 31, 2025, an increase of $7.3 million, or 3.6%, compared to $200.9 million for the same period in 2024[225] Subscriber Metrics - Active Subscribers increased to 148,916, a 12.4% year-over-year increase, while Total Subscribers reached 185,166, up 6.1% year-over-year[154] - Active Subscribers increased to 148,916 as of October 31, 2025, up from 132,518 a year earlier, driven by higher promotional activity and improved retention[179] - Average Active Subscribers rose to 147,645 for the three months ended October 31, 2025, compared to 130,796 for the same period in 2024[180] Profitability and Margins - Gross Profit for the third quarter was $25.9 million, with a gross margin of 29.6%, down from 34.7% in the prior year[154] - Gross Profit for the three months ended October 31, 2025, was $25.9 million, down from $26.3 million in 2024, with Gross Margins decreasing from 34.7% to 29.6%[183] - Adjusted EBITDA was $4.3 million for the three months ended October 31, 2025, down from $9.3 million in 2024, with margins decreasing from 12.3% to 4.9%[186] - Net income was $76.5 million for the three months ended October 31, 2025, compared to a net loss of $(18.9) million for the same period in 2024[245] Expenses and Costs - Total costs and expenses were $103.8 million for the three months ended October 31, 2025, an increase of $14.2 million, or 15.8%, compared to $89.6 million for the same period in 2024[206] - Fulfillment expenses were $24.0 million for the three months ended October 31, 2025, an increase of $2.6 million, or 12.1%, representing 27.4% of revenue[207] - Technology expenses were $10.5 million for the three months ended October 31, 2025, an increase of $1.8 million, or 20.7%, compared to $8.7 million for the same period in 2024[209] - General and administrative expenses were $22.7 million for the three months ended October 31, 2025, an increase of $1.5 million, or 7.1%, compared to $21.2 million for the same period in 2024[213] - Rental product depreciation and revenue share was $37.7 million for the three months ended October 31, 2025, an increase of $9.5 million, or 33.7%, compared to $28.2 million for the same period in 2024[215] Cash Flow and Debt - Cash and Cash Equivalents as of October 31, 2025, were $50.7 million, down from $74.1 million in the previous year[154] - Cash flows from operations for the nine months ended October 31, 2025, were $(3.6) million, compared to $11.5 million for the same period in 2024[257] - The company had total debt outstanding of approximately $159.1 million as of October 31, 2025, with no maturities within the next 12 months[263] - The company completed recapitalization transactions on October 28, 2025, reducing existing indebtedness by exchanging $100 million for new term loans and issuing 26,175,193 shares of Class A Common Stock[252] Strategic Plans and Market Conditions - The company plans to nearly double the new inventory added to its site in fiscal year 2025, driving substantial growth[151] - The company expects to incur higher purchases of rental products in fiscal year 2025 compared to fiscal year 2024 due to increased inventory[156] - The company faces significant macroeconomic uncertainties, including inflation and supply chain issues, which may impact consumer spending and operational costs[172] - The company plans to invest in customer experience and optimize shipping methods to drive growth and efficiencies despite rising costs[174] - Fulfillment expenses are expected to fluctuate due to competitive labor market pressures, with a focus on automation to improve operational efficiency[191] Other Financial Metrics - Gain on Debt Restructuring was $96.3 million for the three months ended October 31, 2025, recognized from the troubled debt restructuring completed in October 2025[221] - Gain on Debt Restructuring was $96.3 million for the nine months ended October 31, 2025, recognized from the troubled debt restructuring completed in October 2025[239] - The company reported net income from operations of $76.5 million for the three months ended October 31, 2025, primarily due to a Gain on Debt Restructuring of $96.3 million[250] - The 2023 Amended Temasek Facility eliminated all interest payments for six fiscal quarters and reduced the minimum liquidity maintenance covenant from $50 million to $30 million[251] - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to adopt new accounting guidance in line with private companies[268] - There were no material changes to the company's quantitative and qualitative disclosures about market risk in the three months ended October 31, 2025, compared to the 2024 Annual Report[269]