Titan Machinery(US:TITN)2025-09-04 19:18PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Presents the unaudited condensed consolidated financial statements and detailed notes for July 31, 2025 Condensed Consolidated Balance Sheets | Metric | July 31, 2025 (in thousands) | January 31, 2025 (in thousands) | | :--- | :--- | :--- | | Total Assets | $1,877,942 | $1,813,938 | | Total Liabilities | $1,267,599 | $1,199,861 | | Total Stockholders' Equity | $610,343 | $614,077 | | Cash | $32,675 | $35,898 | | Inventories, net | $1,140,000 | $1,108,672 | | Floorplan payable | $852,225 | $755,698 | - Total assets increased by $63.9 million, primarily driven by an increase in inventories. Total liabilities increased by $67.7 million, mainly due to a significant rise in floorplan payable. Stockholders' equity slightly decreased by $3.7 million8 Condensed Consolidated Statements of Operations | Metric | Three Months Ended July 31, 2025 (in thousands) | Three Months Ended July 31, 2024 (in thousands) | Six Months Ended July 31, 2025 (in thousands) | Six Months Ended July 31, 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $546,426 | $633,674 | $1,140,763 | $1,262,376 | | Gross Profit | $93,646 | $112,379 | $184,580 | $234,132 | | Income (Loss) from Operations | $662 | $15,750 | $(5,074) | $38,345 | | Net (Loss) Income | $(6,000) | $(4,304) | $(19,204) | $5,136 | | Basic EPS | $(0.26) | $(0.19) | $(0.85) | $0.22 | | Diluted EPS | $(0.26) | $(0.19) | $(0.85) | $0.22 | - For the three months ended July 31, 2025, total revenue decreased by 13.8% YoY, and net loss widened to $6.0 million from $4.3 million in the prior year. For the six months ended July 31, 2025, total revenue decreased by 9.6% YoY, and the company reported a net loss of $19.2 million compared to a net income of $5.1 million in the prior year974105 Condensed Consolidated Statements of Comprehensive Income (Loss) | Metric | Three Months Ended July 31, 2025 (in thousands) | Three Months Ended July 31, 2024 (in thousands) | Six Months Ended July 31, 2025 (in thousands) | Six Months Ended July 31, 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Net (Loss) Income | $(6,000) | $(4,304) | $(19,204) | $5,136 | | Foreign currency translation adjustments | $9,511 | $58 | $13,172 | $(4,467) | | Comprehensive Income (Loss) | $3,511 | $(4,246) | $(6,032) | $669 | - Comprehensive income for the three months ended July 31, 2025, was $3.5 million, a significant improvement from a loss of $4.2 million in the prior year, primarily due to positive foreign currency translation adjustments. For the six months, comprehensive loss was $6.0 million, compared to income of $0.7 million in the prior year, despite positive foreign currency adjustments10 Condensed Consolidated Statements of Stockholders' Equity | Metric | July 31, 2025 (in thousands) | January 31, 2025 (in thousands) | July 31, 2024 (in thousands) | January 31, 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Total Stockholders' Equity | $610,343 | $614,077 | $659,566 | $657,642 | | Retained Earnings | $341,110 | $360,314 | $402,362 | $397,225 | | Accumulated other comprehensive income (loss) | $4,838 | $(8,334) | $(2,707) | $1,760 | - Total stockholders' equity decreased from $614.1 million at January 31, 2025, to $610.3 million at July 31, 2025, primarily due to net losses, partially offset by positive other comprehensive income from foreign currency translation adjustments13 Condensed Consolidated Statements of Cash Flows | Metric | Six Months Ended July 31, 2025 (in thousands) | Six Months Ended July 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net Cash Provided by (Used for) Operating Activities | $49,894 | $(47,367) | | Net Cash Used for Investing Activities | $(24,852) | $(21,467) | | Net Cash (Used for) Provided by Financing Activities | $(29,961) | $62,411 | | Net Change in Cash | $(3,223) | $(6,847) | | Cash at End of Period | $32,675 | $31,219 | - Net cash provided by operating activities significantly improved to $49.9 million for the first six months of fiscal 2026, compared to a net cash outflow of $47.4 million in the prior year, driven by changes in inventory and floorplan financing. Net cash used for investing activities increased to $24.9 million, primarily due to an acquisition. Net cash used for financing activities was $30.0 million, a reversal from $62.4 million provided in the prior year, mainly due to lower non-manufacturing floorplan payables14130131132 Notes to Condensed Consolidated Financial Statements - The notes provide detailed information on the company's business activities, significant accounting policies, and specific financial statement line items, including revenue disaggregation by source and segment, receivables, inventories, property and equipment, intangible assets and goodwill, floorplan payable, long-term debt, derivative instruments, accumulated other comprehensive income (loss), leases, fair value of financial instruments, income taxes, business combinations, contingencies, and business segment and geographic information161724 NOTE 1 - BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES - The company is engaged in the retail sale, service, and rental of agricultural and construction machinery through stores in the United States, Europe (Bulgaria, Germany, Romania, Ukraine), and Australia17 - Operating results are subject to fluctuation due to weather patterns and factors influencing customer profitability, impacting equipment purchases, rentals, and after-sales services16 - The company is evaluating new FASB ASUs (2023-09, 2024-03, 2025-01, 2025-03, 2025-05) regarding income tax disclosures, expense disaggregation, business combinations, and credit loss measurement, with no material impact expected from preliminary analysis20212223 NOTE 2 - EARNINGS PER SHARE | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | Six Months Ended July 31, 2025 | Six Months Ended July 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net (loss) income attributable to common stockholders (in thousands) | $(6,000) | $(4