Revenue Performance - Service revenue for Q3 2025 was $241.9 million, a decrease of 1.7% from Q2 2025 and a decrease of 5.9% from Q3 2024[4] - On-net revenue increased by 2.2% sequentially to $135.3 million in Q3 2025, but decreased by 0.9% year-over-year[6] - Wavelength revenue rose by 12.4% sequentially to $10.2 million and increased by 92.5% from Q3 2024[8] - Non-core revenue was $1.4 million for Q3 2025, down from $2.7 million in Q2 2025 and $4.1 million in Q3 2024[9] - Total service revenue for Q1 2024 was $266,168, representing a 2.2% decline from the previous quarter[33] - Service revenue for Q1 2024 was reported at $266,168, which was 62.4% higher than the same period in the prior year[66] - Service revenue for Q1 2025 was reported at $247,048, showing a sequential decrease of 1.6% compared to Q4 2024[65] - Service revenue adjusted for currency and excise taxes for Q1 2025 was $248,350, reflecting a decrease of 1.6% from the prior period[65] Financial Metrics - EBITDA for Q3 2025 was $48.8 million, up 0.6% from Q2 2025 and up 36.0% from Q3 2024, with an EBITDA margin of 20.2%[3] - Operating loss was reported at $18,128, which is a 42.4% decrease compared to the previous quarter's loss of $31,459[35] - EBITDA for the latest quarter reached $48,781, showing a 0.6% increase from $48,495 in the prior quarter[36] - Adjusted EBITDA for the latest quarter was $114,989 million, reflecting a 4.1% increase from the previous quarter[37] - The Gross Leverage Ratio decreased to 3.57 from 4.06 in the previous quarter[37] - The trailing 12 months EBITDA, adjusted for Sprint acquisition costs, was $302,636 as of March 31, 2025[72] Cash Flow and Capital Expenditures - Net cash provided by operating activities was $3.1 million for Q3 2025, compared to a net cash used of $44.0 million in Q2 2025[14] - Capital expenditures decreased by 35.5% to $36.3 million in Q3 2025 from Q2 2025[3] - Cash provided by operating activities for Q3 2025 was $3,100,000, compared to cash used of $20,226,000 in Q3 2024[82] - Capital expenditures totaled $40,883 million, representing a 6.3% decrease from the previous quarter[37] Customer Metrics - Total customer connections decreased by 6.4% year-over-year to 118,279 as of September 30, 2025[22] - Total customer connections reached 132,883, a decline of 3.4% from the previous quarter[38] - On-Net customer connections were 87,574, showing a slight decrease of 0.8% from the previous quarter[38] - Off-Net customer connections decreased by 5.7% to 34,579[38] - Non-Core customer connections decreased by 16.2% to 10,037[38] Dividends and Shareholder Returns - The company approved a quarterly dividend of $0.02 per share for Q4 2025[25] - Dividends declared per common share increased to $1.015 in Q3 2025 from $0.985 in Q3 2024[80] Acquisitions and Investments - Cogent entered into a letter of intent to sell two data centers for $144 million in cash[3] - The company acquired 482 technical buildings, converting 52 into Cogent Data Centers and 86 into Cogent Edge Data Centers[51] - The gain on bargain purchase from the Sprint acquisition amounted to $1.4 billion[50] Risks and Challenges - Risks include economic instability, potential recession, and liquidity concerns affecting spending on Internet services[84] - The company faces increasing competition, which could lead to lower service prices and affect customer acquisition[84] - Legal and operational challenges in new markets may pose risks to growth[84] - The management emphasizes the importance of maintaining favorable terms for Internet peering arrangements and right-of-way agreements[84] - Cogent highlights the potential impact of cyber-attacks and security breaches on its network operations[84]

Financial Performance - Fourth quarter revenue from continuing operations was $54.9 million, an increase of 7.0% year-over-year; full year revenue was $213.2 million, up 11.5% from the previous year[4] - Fourth quarter net income from continuing operations was $1.5 million, down from $6.3 million in the prior year's fourth quarter; full year net income was $5.6 million, compared to a net loss of $16.0 million for the year ended September 30, 2024[4] - Annualized Recurring Revenue (ARR) for the fourth quarter was $165.3 million, representing a growth rate of 9.2% compared to $151.4 million in the prior year[4] - Adjusted EBITDA from continuing operations for the fourth quarter was $14.4 million, a decrease of 1.5% year-over-year; full year adjusted EBITDA was $57.5 million, an increase of 14.0% from the previous year[4] - Adjusted diluted earnings per share from continuing operations for the fourth quarter was $0.27, compared to $0.12 in the prior year's quarter; full year adjusted diluted earnings per share was $1.05, up from $0.30[4] - Adjusted EBITDA as a percentage of revenue was 26.2% for the fourth quarter, down from 28.5% in the prior year; for the full year, it was 27.0%, compared to 26.4% the previous year[4] - The adjusted net income from continuing operations for the year ended September 30, 2025, was $35,755,000, a significant increase of 255.5% compared to $10,044,000 in 2024[37] - The adjusted EBITDA from continuing operations for the year ended September 30, 2025, was $57,535,000, up 14% from $50,464,000 in 2024[32] - The diluted earnings per share from continuing operations for the three months ended September 30, 2025, was $0.04, down from $0.19 in the same period of 2024[37] - The adjusted diluted earnings per share from continuing operations for the year ended September 30, 2025, was $1.05, compared to $0.30 in 2024, representing a 250% increase[37] Revenue Expectations - The company expects fiscal year 2026 revenue to be in the range of $217 million to $232 million, with adjusted EBITDA projected between $58.5 million and $65 million[9] - SaaS revenue grew 23% compared to the prior year, indicating strong demand for software solutions[6] Cash and Assets - The company has over $65 million in cash on hand, positioning it well for future investments and growth opportunities[8] - Total assets decreased to $638,411 million as of September 30, 2025, from $730,675 million in 2024[24] - Current liabilities decreased significantly to $70,689 million in 2025 from $164,731 million in 2024[24] Operating Expenses and Income - Operating expenses totaled $53,425 million for the three months ended September 30, 2025, up 12% from $47,912 million in 2024[21] - The company reported a net cash provided by operating activities of $5,694 million for the year ended September 30, 2025, down from $48,409 million in 2024[26] - Net income for the three months ended September 30, 2025, was $4,201 million, a significant decrease of 98% compared to $178,544 million in 2024[21] - For the three months ended September 30, 2025, i3 Verticals, Inc. reported a net income from continuing operations of $1,501,000, compared to $6,320,000 for the same period in 2024, reflecting a decrease of approximately 76.3%[32] Business Developments - The company recently secured a contract with the Supreme Court of Appeals of West Virginia to implement new case management software statewide, highlighting its market expansion efforts[7] - The company reclassified certain expenses to align with its new business model after the sale of its Merchant Services Business, impacting the presentation of financial results[22] Non-GAAP Metrics - Adjusted EBITDA from continuing operations is a key metric for evaluating the company's ongoing operational performance[30] - The company has a long-term effective tax rate of 25%, which is used for calculating adjusted net income from continuing operations[30] - Non-GAAP adjustments included $15,232,000 in equity-based compensation from continuing operations for the year ended September 30, 2025, slightly down from $15,396,000 in 2024[32] - M&A-related income for the year ended September 30, 2025, was $6,641,000, while M&A-related expenses totaled $7,792,000, indicating a net impact on operational performance[35] - The company reported a non-cash change in fair value of contingent consideration of $(206,000) for the three months ended September 30, 2025[32] - The provision for income taxes for the three months ended September 30, 2025, was $1,994,000, compared to a benefit of $(8,620,000) in the same period of 2024[32] Shareholder Information - The weighted average shares of Class A common stock outstanding for diluted earnings per share from continuing operations was 34,215,380 for the year ended September 30, 2025[21] - The adjusted weighted average shares of adjusted diluted Class A common stock outstanding for the three months ended September 30, 2025, was 34,215,380, slightly up from 34,169,684 in 2024[37]

Financial Performance - Consolidated revenues for Q3 2025 were $43,371, an increase of $7,677 or 21.5% compared to $35,694 in Q3 2024, driven by Electrochem sales of $6,797 and a 16.4% increase in government/defense sales[105] - Gross profit for Q3 2025 was $9,619, representing 22.2% of revenue, down from $8,682 or 24.3% in Q3 2024, primarily due to sales product mix and quality issues impacting manufacturing[106] - The operating loss for Q3 2025 was ($951), or (2.2%) of revenues, compared to an operating income of $511, or 1.4% of revenues in Q3 2024, mainly due to lower gross margins in the Battery & Energy Products segment[109] - Net loss attributable to Ultralife Corporation was ($1,220), or ($0.07) per share, for Q3 2025, compared to net income of $258, or $0.02 per share, in Q3 2024[111] - Adjusted EBITDA for Q3 2025 was $2,048, or 4.7% of revenues, down from $1,919, or 5.4% of revenues in Q3 2024[112] - Consolidated revenues for the nine-month period ended September 30, 2025, were $142,678, an increase of $22,074 or 18.3% over $120,604 in the same period of 2024[126] - Net income attributable to Ultralife was $1,524 or $0.09 per share for the nine-month period ended September 30, 2025, down from $6,118 or $0.37 per share in the same period of 2024[136] - Adjusted EBITDA for the nine-month period ended September 30, 2025, was $11,609,000, compared to $12,577,000 for the same period in 2024, reflecting an 7.7% decrease[144] Revenue Breakdown - Battery & Energy Products revenues increased by $7,417, or 22.8%, to $39,946 in Q3 2025, with government/defense sales up 19.0% but commercial sales down 5.7%[115] - Communications Systems sales rose by $260, or 8.2%, to $3,425 in Q3 2025, impacted by delays in purchase orders due to anticipated U.S. Government shutdown[116] - Communications Systems revenues decreased by $5,859 or 35.7% to $10,544 for the nine-month period ended September 30, 2025, due to delays in purchase orders and reduced shipments[128] Cost and Expenses - Operating expenses increased to $10,570 in Q3 2025 from $8,171 in Q3 2024, reflecting Electrochem's results and one-time costs related to closing the Calgary facility[107] - Cost of products sold increased to $33,752 in Q3 2025, up 25.0% from $27,012 in Q3 2024, leading to a gross margin decline from 24.3% to 22.2%[117] - Operating expenses for the nine-month period ended September 30, 2025, were $29,261, an increase of $6,037 or 26.0% from $23,224 in 2024[132] - Research and development costs increased by $754 or 35.9% to $2,855 in Q3 2025, driven by the inclusion of Electrochem and higher new product development costs[121] Cash Flow and Investments - For the nine-month period ended September 30, 2025, cash generated from operations was $9,501,000, down from $13,590,000 in the same period of 2024, representing a 30.5% decrease[146] - As of September 30, 2025, cash totaled $9,260,000, an increase from $6,854,000 at December 31, 2024, indicating a 35.5% rise[145] - Cash used in investing activities for the nine months ended September 30, 2025, was $2,986,000, primarily for capital expenditures related to new product manufacturing[147] - Cash used in financing activities for the nine months ended September 30, 2025, was $3,989,000, which included a $4,063,000 reduction in outstanding debt[148] Debt and Financing - As of September 30, 2025, the company had $50,937,000 outstanding on the Term Loan and no amounts outstanding on the Revolving Credit Facility, indicating full compliance with debt covenants[151] - The company expects positive operating cash flow and availability of borrowings under its Revolving Credit Facility to meet general funding requirements in the foreseeable future[149] - The new shelf registration statement filed on March 29, 2024, allows the company to offer and sell up to $100,000,000 in securities for general corporate purposes, including potential acquisitions and strategic capital expenditures[150] Taxation - The effective tax rate decreased to 16.9% for the nine-month period ended September 30, 2025, from 20.9% in 2024, primarily due to the geographic mix of operating results[135]

Revenue Performance - Net revenue decreased by $36.6 million or 73% to $13.4 million for the three months ended September 30, 2025, compared to $50.0 million for the same period in 2024[168] - For the nine months ended September 30, 2025, net revenue decreased by $84.2 million or 57% to $62.2 million from $146.4 million in the same period in 2024[168] - Device revenue decreased by $7.8 million or 53% to $7.1 million for the three months ended September 30, 2025, from $14.9 million for the same period in 2024[176] - Device revenue decreased by $14.8 million or 33% to $30.0 million for the nine months ended September 30, 2025, from $44.8 million for the same period in 2024[176] - Supplies revenue decreased by $28.8 million or 82% to $6.3 million for Q3 2025, and by $69.3 million or 68% to $32.2 million for the nine months ended September 30, 2025[178] Operational Challenges - Device orders decreased by 35% and 20% for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[168] - The decrease in supplies revenue was significantly impacted by the Tricare payment suspension, resulting in a $13.3 million decline for Q3 2025[179] - Device revenue declined by approximately $2.0 million (from the same period in 2024) due to a temporary Tricare payment suspension and workforce reductions[177] Financial Position - Cash used in operating activities was $23.0 million during the nine months ended September 30, 2025, compared to cash provided by operating activities of $10.3 million during the same period in 2024[169] - Working capital deficit was $41.8 million as of September 30, 2025, compared to working capital of $58.3 million as of December 31, 2024[169] - As of September 30, 2025, the company had $13.3 million in cash and cash equivalents and $6.7 million in net accounts receivable[192] Expenses and Impairments - The company recognized pre-tax non-cash asset impairment charges of $30.7 million during the quarter ended September 30, 2025, primarily related to goodwill and certain fixed assets associated with Zynex Monitoring Solutions[154] - Cost of revenue for devices and supplies decreased by $4.9 million or 48% to $5.3 million for Q3 2025, but as a percentage of revenue, it increased to 40% from 20%[180] - General and administrative expenses decreased by $3.5 million or 23% to $11.8 million for Q3 2025, with the percentage of revenue increasing to 88% from 31%[186] - The company recorded non-cash impairment charges totaling $30.7 million during Q3 2025 related to its ZMS subsidiary[189] Net Loss and Default Risk - The company has incurred net losses of $73.3 million for the nine months ended September 30, 2025, compared to net income of $3.6 million during the same period in 2024[198] - The company has not made an interest payment of approximately $1.5 million due on November 15, 2025, which could lead to an event of default[201] Workforce and Severance - The company expects to incur aggregate pre-tax cash severance charges of approximately $0.7 million in the fourth quarter of 2025 due to workforce reductions[154] - Tricare historically represented approximately 20-25% of the company's annual revenue, with cash collections from Tricare amounting to $48.8 million and $38.8 million for the years ended December 31, 2024 and 2023, respectively[165]

Revenue and Income - Revenue for the nine months ended September 30, 2025 was $0, a decrease from $55 in the same period of 2024, primarily due to no revenue-generating tournament activity or live streaming services [224]. - Other income for the nine months ended September 30, 2025 was a net income of $3,624,433, compared to a net expense of $1,740,710 in the same period of 2024, driven by a $4,080,000 net unrealized gain on equity securities [227]. - Other income for Q3 2025 was $4,171,117, compared to net other expenses of $460,620 in Q3 2024, driven by a net unrealized gain on equity securities of $4,080,000 [232]. - The company anticipates continued operating losses as it executes its development plans through 2025, raising concerns about its ability to continue as a going concern [242]. - As of September 30, 2025, the company has incurred recurring losses from operations and has not generated net income for an entire year of operations [269]. - The company anticipates continued operating losses and negative cash flows from operations for the foreseeable future [269]. - The company does not expect to generate sufficient revenue to achieve net income during the next twelve months [270]. Operating Expenses - Operating expenses for the nine months ended September 30, 2025 were $3,856,687, an increase of $2,596,624 compared to $1,260,063 in the same period of 2024, mainly due to increased spending post-IPO [226]. - Operating expenses for Q3 2025 were $1,630,481, a significant increase of $1,080,043 (197%) compared to $549,438 in Q3 2024, primarily due to increased selling, general and administrative expenses and stock-based compensation [231]. - Cash flows used in operating activities for the nine months ended September 30, 2025, were $(4,215,961), a substantial increase from $(528,504) in the same period of 2024 [243]. Cash and Liquidity - The company had cash of $9,595,577 as of September 30, 2025, compared to $29,228 as of December 31, 2024, indicating a significant increase in liquidity due to IPO proceeds [233]. - Net proceeds from financing activities for the nine months ended September 30, 2025, were $18,658,936, significantly higher than $544,520 in the same period of 2024 [246]. - Current cash and cash equivalents, including funds from the IPO and PIPE Offering, are believed to be sufficient to fund operations for at least the next twelve months [271]. Strategic Partnerships and Initiatives - The company launched its first activation under a strategic partnership with Learfield in May 2025, starting with the University of Florida [212]. - The company anticipates scaling Learfield-based activations across additional universities and launching digital activations with rewards through Loyalty Tokens [221]. - The company has secured a strategic partnership with Learfield Communications, aiming to leverage college networks for sponsorship revenue and data insights [238]. Engagement and Growth Metrics - The company experienced a 148% year-over-year increase in video views from 2020 to 2024, reaching nearly 1,400,000 views by September 30, 2025 [209]. - Impressions increased by 57% year-over-year from 2020 to 2024, totaling nearly 8.5 million since inception [209]. - The average viewing time for live streams was 19 minutes, significantly higher than the industry benchmark of 11 minutes, indicating strong viewer engagement [209]. - The Golden Royale Cup tournament in November 2023 garnered nearly 300,000 views and 20,000 total hours of live-streaming content, showcasing the company's growing engagement in esports [236]. Development and Future Plans - A beta version of a scalable data insights monetization SaaS model is expected to be ready by Q1 2026, aimed at providing a recurring revenue stream [213]. - The company is in the development stage of its platform and related software, with ongoing investments in product development, infrastructure, and customer acquisition planned [271]. Audit and Compliance - The independent auditors' report expresses substantial doubt about the company's ability to continue as a going concern [269]. - The financial statements have been prepared in conformity with U.S. GAAP, assuming continuation of the company as a going concern [272]. Stock Options and Valuation - The company issued stock options and warrants in connection with the IPO and PIPE Offering during the nine months ended September 30, 2025 [264]. - Key assumptions for stock options and warrants valuation include expected volatility, expected term, risk-free interest rate, and expected dividend yield [265]. - The company uses the "simplified method" for estimating the expected term for stock options issued at-the-money [266].

Premiums and Revenue - Gross written premiums for Q3 2025 decreased to $14.6 million, down 2.9% from $15.1 million in Q3 2024[9] - Net written premiums fell significantly by 51.4% to $5.4 million in Q3 2025, compared to $11.2 million in Q3 2024[5] - Net earned premiums also declined by 53.3% to $6.8 million in Q3 2025, down from $14.6 million in the same period last year[5] - Gross earned premiums for Q3 2025 were $17,015 thousand, down from $23,278 thousand in Q3 2024, reflecting a decline of approximately 27.0%[34] - Net earned premiums for Q3 2025 were $6,821 thousand, compared to $14,601 thousand in Q3 2024, representing a decrease of about 53.3%[34] - Total revenue and other income for Q3 2025 was $6,679 thousand, down from $16,017 thousand in Q3 2024, a decline of approximately 58.3%[34] Financial Performance - The company reported a net loss allocable to common shareholders of $4.0 million, or $0.32 per share, for Q3 2025[22] - Adjusted operating loss for Q3 2025 was $2.7 million, translating to a loss of $0.22 per share[23] - Net income for Q3 2025 was $(3,970) thousand, a significant decrease from $53,290 thousand in Q3 2024[30] - The company reported a net loss from continuing operations of $(3,970) thousand for Q3 2025, compared to a loss of $(6,886) thousand in Q3 2024[34] - Adjusted operating income for Q3 2025 was $(2,706) thousand, compared to $(6,850) thousand in Q3 2024, indicating an improvement[30] Underwriting Performance - The personal lines business achieved a combined ratio of 95.2%, indicating improved underwriting performance compared to 100.7% in Q3 2024[19] - The combined ratio for the nine months ended September 30, 2025, was 133.7%, compared to 120.0% for the same period in 2024, indicating ongoing challenges in underwriting[19] Investment and Assets - Net investment income for Q3 2025 was $1.3 million, a decrease of 6.5% from $1.4 million in Q3 2024[20] - Total assets as of September 30, 2025, were $284,995 thousand, a slight increase from $281,656 thousand as of December 31, 2024[32] - Total liabilities decreased to $259,692 thousand as of September 30, 2025, from $260,131 thousand as of December 31, 2024[32] Shareholder Information - The book value per common share outstanding remained at $2.07, unchanged from the previous year[5] - The weighted average common shares outstanding remained constant at 12,222,881 for both Q3 2025 and Q3 2024[34] Future Outlook - The company has indicated expectations regarding future premiums and earnings, although specific forecasts were not detailed in the provided content[29] - The company is focusing on personal lines, which represented 76.2% of total gross written premiums in Q3 2025, with a slight increase from the prior year[18]

Financial Performance - Net revenue for Q3 2025 was $13.4 million, a decline of 73% compared to $50.0 million in Q3 2024, primarily due to Tricare payment suspension and a $2.8 million revenue reduction during the suspension period[6] - Gross profit for the quarter was $8.1 million, representing 60% of revenue, down from $39.8 million or 80% of revenue in Q3 2024[7] - Net loss for Q3 2025 totaled ($42.9) million, or ($1.42) per share, significantly impacted by a non-cash asset impairment charge of $30.7 million[9] - Adjusted EBITDA loss for Q3 2025 was ($12.3) million, compared to an Adjusted EBITDA of $5.1 million in Q3 2024[10] - Total net revenue for Q3 2025 was $13,360,000, a decrease of 73% compared to $49,966,000 in Q3 2024[20] - Net income (loss) for the nine months ended September 30, 2025, was $(73,343,000), compared to $3,609,000 for the same period in 2024[21] - Adjusted EBITDA for Q3 2025 was $(12,343,000), representing -92% of net revenue, compared to 10% in Q3 2024[23] - Total costs of revenue and operating expenses for Q3 2025 were $57,322,000, an increase from $46,164,000 in Q3 2024[20] Cash Flow and Assets - Cash flow from operations for Q3 2025 was ($6.3) million, with total cash and cash equivalents at $13.3 million as of September 30, 2025[10] - Cash and cash equivalents at the end of Q3 2025 were $13,259,000, down from $37,630,000 at the end of Q3 2024[21] - Total current assets decreased to $37.0 million as of September 30, 2025, down from $75.2 million at the end of 2024[19] Liabilities and Debt - Total liabilities increased to $86.7 million as of September 30, 2025, compared to $86.4 million at the end of 2024[19] - Zynex has entered a 30-day grace period and will not make a $1.5 million interest payment on its $60 million Convertible Notes due in May 2026[4] - The company incurred interest expense of $890,000 in Q3 2025, compared to $625,000 in Q3 2024[20] Revenue Breakdown - Devices revenue for Q3 2025 was $7,057,000, down from $14,858,000 in Q3 2024[20] - Supplies revenue for Q3 2025 was $6,303,000, compared to $35,108,000 in Q3 2024[20] Expenses - Sales and marketing expenses decreased by 54% to $9.5 million from $20.7 million in Q3 2024, primarily due to reduced sales force headcount[8] - The company reported impairment charges of $30,740,000 for the nine months ended September 30, 2025[20] Strategic Initiatives - The company has engaged Province, LLC to evaluate strategic alternatives, including potential capital raising and restructuring strategies[3] Shareholder Information - Weighted average basic shares outstanding decreased to 30,314,000 in Q3 2025 from 31,775,000 in Q3 2024[20]

Financial Results - Inotiv, Inc. announced preliminary unaudited financial results for Q4 and fiscal year ended September 30, 2025[4] - The press release detailing financial results is available in the Investors section of the Company's website[4] Upcoming Events - The presentation by CEO Robert Leasure at the Jefferies Global Healthcare Conference is scheduled for November 18, 2025[4]

Financial Performance - The company generated a net income of approximately $3.8 million for the year ended July 31, 2025, compared to $6.0 million in 2024 and $3.4 million in 2023[378]. - Revenue for the fiscal year ended July 31, 2025, was approximately $90.37 million, reflecting a 32.07% increase from $68.42 million in 2024[330]. - Gross in-game purchase amount for fiscal year 2025 reached $106.99 million, up from $84.46 million in 2024 and $81.39 million in 2023, representing a year-over-year increase of 26.5%[311]. - Net income decreased by about US$2.2 million, or 36.4%, from about US$6.0 million in fiscal 2024 to about US$3.8 million in fiscal 2025[369]. Cash Flow and Investments - As of July 31, 2025, the company had approximately $12.2 million in cash and cash equivalents, a decrease from $14.5 million in 2024, while net working capital increased from $6.1 million in 2024 to $9.7 million[375]. - For the year ended July 31, 2025, net cash provided by operating activities was approximately $0.1 million, down from $1.6 million in 2024 and $2.6 million in 2023[376]. - The company used about $1.2 million in investing activities for the year ended July 31, 2025, primarily for property and equipment purchases and investments in films and television programs[382]. - The net cash used in investing activities for 2025 was about US$1.2 million, consistent with 2024, and an increase from US$0.5 million in 2023[382][383]. User Metrics and Engagement - Daily active users (DAUs) increased to 264,149 in fiscal year 2025, compared to 197,100 in 2024 and 189,985 in 2023, reflecting a growth of 33.9% year-over-year[311]. - Monthly active users (MAUs) increased to 3,378,835 in fiscal year 2025, compared to 2,301,929 in 2024, marking a growth of 46.9% year-over-year[311]. - Paying daily active users (PDAUs) rose to 17,458 in fiscal year 2025, a 6.2% increase from 16,446 in 2024 and a 29.0% increase from 13,541 in 2023[311]. - The ratio of PDAUs to DAUs decreased to 6.61% in fiscal year 2025 from 8.34% in 2024, indicating a decline in conversion efficiency[311]. Expenses and Cost Management - Cost of revenue increased by approximately $5.8 million, or 36.0%, to $22.04 million for the fiscal year ended July 31, 2025[337]. - General and administrative expenses rose by 63.78% to $8.48 million, driven by increased administrative functionalities and public company costs[330][323]. - Research and development expenses surged by 480.48% to $5.53 million, reflecting the company's commitment to technology and content improvement[330][325]. - Sales and marketing expenses increased by approximately US$16.0 million, or 40.5%, in fiscal 2025, accounting for approximately 61.3% of total revenue[355]. Market and Revenue Sources - Japan remained the largest market, contributing approximately 69.6% of total revenue in fiscal 2025, down from 81.5% in fiscal 2024[335]. - Revenue from South Korea increased by approximately $6.1 million, or 188.0%, indicating strong user growth following new releases[334]. - The developer of "Vivid Army" was the largest customer, contributing 30.1%, 40.3%, and 58.2% of revenues for the fiscal years ended July 31, 2025, 2024, and 2023, respectively[303]. Future Outlook and Strategic Initiatives - The company expects significant capital expenditures in the foreseeable future to support business expansion and enhance research and development capabilities[386]. - The company aims to expand its active user base and enhance monetization through collaborations with leading game developers and IP providers[312]. - The company plans to continue investing in research and development to improve user gaming experience and operational efficiency[390]. Accounting and Compliance - The company appointed Golden Ocean FAC PAC as its new independent registered public accounting firm effective September 5, 2025, succeeding YCM CPA INC.[372]. - The company has not entered into any off-balance sheet financial guarantees or derivative contracts that are not reflected in its combined financial statements[389]. - The adoption of ASC 326 for expected credit losses did not have a material impact on the company's financial statements[394].

Financial Performance - For the three months ended September 30, 2025, the Company reported net income attributable to common shareholders of $25.6 million, or $0.55 per diluted share, compared to $13.0 million, or $0.28 per diluted share for the same period in 2024[146]. - For the nine months ended September 30, 2025, net income attributable to common shareholders was $58.7 million, or $1.28 per diluted share, down from $67.6 million, or $1.48 per diluted share for the same period in 2024[148]. - The Company’s net income tax expense increased by $13.0 million, from $8.4 million in the first nine months of 2024 to $21.4 million for the same period in 2025[151]. Interest Income and Assets - Net interest income for the three months ended September 30, 2025, increased by $18.5 million, or 19.1%, to $115.5 million compared to $97.0 million for the same period in 2024[153]. - Average interest-earning assets increased by $2.19 billion, or 19.0%, to $13.77 billion for the third quarter of 2025, compared to $11.57 billion for the third quarter of 2024[153]. - For the nine months ended September 30, 2025, net interest income increased by $46.8 million, or 16.8%, to $325.2 million compared to $278.4 million for the same period in 2024[155]. - Total interest-earning assets for the three months ended September 30, 2025, were $13.77 billion, generating interest income of $231.43 million[159]. - The yield on average interest-earning assets decreased by 51 basis points to 6.67% for the third quarter of 2025[153]. - The yield on average interest-earning assets decreased by 42 basis points to 6.72% for the nine months ended September 30, 2025[155]. Credit Losses and Provisions - The provision for credit losses decreased by $12.3 million, or 35.5%, to $22.2 million for the third quarter of 2025, compared to $34.5 million for the same period in 2024[149]. - For the nine months ended September 30, 2025, the provision for credit losses increased to $74.5 million, up $11.8 million from $62.6 million in the same period of 2024, driven by loan growth and charge-off impacts[167]. - The allowance for credit losses on loans and leases increased by $18.2 million, or 10.9%, to $185.7 million at September 30, 2025[213]. Noninterest Income and Expenses - Noninterest expense increased by $27.6 million, or 11.9%, primarily due to increased salaries and employee benefits of $11.9 million and technology expenses of $4.8 million[150]. - Total noninterest income for Q3 2025 decreased by $2.3 million, or 7.0%, to $30.6 million compared to $32.9 million in Q3 2024[173]. - For the nine months ended September 30, 2025, total noninterest income decreased by $2.5 million, or 2.6%, to $90.7 million compared to $93.2 million in the same period in 2024[175]. Loans and Leases - Loans and leases held for investment at historical cost reached $11.27 billion as of September 30, 2025, an increase of $1.79 billion, or 18.8%, compared to September 30, 2024[168]. - Net charge-offs for Q3 2025 were $16.8 million, or 0.61% of average quarterly loans, compared to $1.7 million, or 0.08%, in Q3 2024, marking an increase of 883.4%[169]. - Total loans and leases 90 or more days past due increased by $46.0 million, or 18.0%, compared to December 31, 2024[215]. Assets and Equity - Total assets at September 30, 2025, were $14.67 billion, an increase of $1.72 billion, or 13.3%, compared to $12.94 billion at December 31, 2024[192]. - Total deposits at September 30, 2025, were $13.29 billion, an increase of $1.53 billion, or 13.0%, from $11.76 billion at December 31, 2024[192]. - Total shareholders' equity at September 30, 2025, was $1.20 billion, an increase of $199.1 million, or 19.8%, from $1.00 billion at December 31, 2024[193]. Regulatory Capital Ratios - The Company's Common Equity Tier 1 Capital ratio as of September 30, 2025, was 10.51%, significantly above the minimum requirement of 4.50%[227]. - Total Capital to Risk-Weighted Assets ratio was 12.67% as of September 30, 2025, exceeding the minimum requirement of 8.00%[227]. Accounting Policies and Estimates - The Company’s critical accounting policy involves the allowance for credit losses, which requires subjective judgments about uncertain matters[229]. - Changes in the allowance for credit losses could materially impact the Company's financial position and results of operations[229]. - Understanding the accounting policies is essential for reviewing the Company's financial statements[229].