Financial Performance - Fourth quarter net income was $21.0 million, a decrease of $0.8 million, or 3.7%, compared to $21.8 million in Q4 2024[4] - Earnings per diluted common share for Q4 2025 were $0.70, down $0.01, or 1.4%, from $0.71 in Q4 2024[4] - Net income for the year ended December 31, 2025, was $69,220 thousand, a decrease of 21.7% from $88,494 thousand in 2024[49] - Adjusted net income available to common shareholders for the year ended December 31, 2025, was $69,806 million, down from $89,419 million in 2024[73] - Net income for the three months ended December 31, 2025, was $20,987 million, compared to $4,913 million for the previous quarter[73] Income and Revenue - Net interest income for Q4 2025 increased to $57.2 million, an increase of $3.5 million, or 6.6%, compared to Q4 2024[4] - Noninterest income, excluding net losses on sales of AFS securities, was $12.9 million for Q4 2025, an increase of $0.6 million, or 5.0%, from Q4 2024[5] - Total revenue for the three months ended December 31, 2025, was $71,988 million, an increase from $70,528 million in the previous quarter[73] - Noninterest income for the year ended December 31, 2025, was $15,956 million, compared to $41,733 million in 2024[73] Loans and Assets - Total loans at December 31, 2025 were $4.82 billion, an increase of $156.4 million, or 3.4%, from $4.66 billion at December 31, 2024[14] - Total assets increased to $8,514,590 thousand as of December 31, 2025, up from $8,383,160 thousand in the previous quarter, representing a growth of 1.56%[39] - The total loan portfolio reached $4,817,991 thousand in 2025, up from $4,661,597 thousand in 2024, with commercial loans increasing to $444,720 thousand[56] Deposits and Liabilities - Deposits at December 31, 2025 were $6.87 billion, an increase of $210.9 million, or 3.2%, compared to $6.65 billion at December 31, 2024[15] - Total interest-bearing liabilities were $6,094,479 thousand in 2025, with a total interest expense of $45,080 thousand[59] - Total liabilities decreased to $7,541,799 in 2025 from $7,579,748 in 2024[69] Credit Quality - The allowance for loan losses totaled $45.1 million, or 0.94% of total loans, at December 31, 2025[22] - Nonperforming assets increased to $38.2 million, or 0.45% of total assets, at December 31, 2025, up from $3.6 million, or 0.04%, at December 31, 2024[21] - The provision for credit losses was $581 thousand, down from $1,092 thousand in the prior quarter, indicating improved credit quality[41] - Nonaccrual loans totaled $10.5 million in 2025, up from $3.2 million in 2024, indicating a significant increase in nonperforming assets[70] Capital and Ratios - The common equity tier 1 capital ratio was 12.87% in Q4 2025, slightly down from 12.97% in Q3 2025[44] - The total risk-based capital ratio decreased to 18.54% in Q4 2025 from 19.01% in Q3 2025, indicating a decline in capital adequacy[44] - Shareholders' equity to total assets improved to 9.95% in 2025 from 9.53% in 2024, reflecting a stronger capital position[53] Efficiency and Management - The efficiency ratio (FTE) improved to 52.28% from 52.99% in the prior quarter, suggesting better cost management[41] - The efficiency ratio (FTE) for the year ended December 31, 2025, was 53.48%, compared to 53.52% in 2024, showing slight improvement[49] - The management team will host a conference call on January 29, 2026, to discuss the fourth quarter and year-end financial results[26] Future Outlook - Forward-looking statements indicate potential risks including economic conditions, interest rate fluctuations, and regulatory changes that could impact future performance[37]

Financial Performance - Revenue for the year ended December 31, 2025, was $4.0 billion, a decrease of 7% from $4.3 billion in 2024[17] - Net income for 2025 was $148 million, or $0.89 fully diluted earnings per share, down from $316 million and $1.87 in 2024[17] - Adjusted EBITDA for 2025 was $634 million, a 31% decrease from $922 million in 2024[17] - Fourth quarter 2025 revenue was $1.0 billion, an increase of 10% from $944 million in Q4 2024[19] - Fourth quarter 2025 net income was $14 million, compared to $52 million in Q4 2024[19] - Net income for the three months ended September 30, 2025, was $13,690, a decrease of 68.3% compared to $43,055 in the same period of 2024[37] - Adjusted net income for the three months ended December 31, 2025, was $7,813 million, a significant decrease from $16,722 million in the same period of 2024[43] - Net income for the year ended December 31, 2025, was $147,872 million, a decrease from $316,010 million in 2024[42] - The company reported a diluted net income per share of $0.08 for the three months ended September 30, 2025, compared to $0.26 for the same period in 2024[37] - The company reported a net income per diluted share of $0.89 for the year ended December 31, 2025, down from $1.87 in 2024[43] Cash Flow and Dividends - Cash dividends paid in 2025 totaled $53 million, with a quarterly cash dividend of $0.09 per share declared for Q4 2025[12][13] - Liberty repurchased 1,546,138 shares of Class A common stock in 2025, representing 1% of shares outstanding, for approximately $24 million[15] Assets and Liabilities - Total assets as of December 31, 2025, were $3,558,305, an increase of 7.9% from $3,296,394 as of December 31, 2024[40] - Total liabilities as of December 31, 2025, were $1,479,416, an increase of 12.3% from $1,317,525 as of December 31, 2024[40] - Cash and cash equivalents as of December 31, 2025, were $27,554, an increase of 38.5% from $19,984 as of December 31, 2024[40] - Total capital employed as of December 31, 2025, was $2,325,496 million, up from $2,169,369 million in 2024[44] Capital Expenditures - Capital expenditures for the three months ended September 30, 2025, were $202,843, an increase of 79.6% from $113,034 in the prior year[37] Future Outlook - Liberty plans to deploy approximately 3 GW of power projects by 2029 to support long-term earnings growth[11] - The company expects growth from recent acquisitions and improvements in operating procedures and technology, indicating a positive outlook for future performance[34] Performance Metrics - The average capital employed for the twelve months ended December 31, 2025, is used to calculate ROCE and CROCI, which are important non-GAAP measures for assessing profitability[31] - Cash return on capital invested for the twelve months ended December 31, 2025, was 13%, indicating a stable performance compared to previous periods[46] - The adjusted pre-tax return on capital employed for the year ended December 31, 2025, was 1%[44] - Cash Return on Capital Invested for 2024 is 21%, down from 34% in 2023[49] Historical Performance - The company has shown a consistent increase in total assets over the past eight years, from $35,699 in 2011 to $3,296,394 in 2024[49] - The cash return on capital invested has fluctuated significantly over the years, peaking at 47% in 2012[50] - The company has maintained a positive cash return on capital invested in recent years, despite a decline in 2024[49]

Product Development - Calidi plans to file an IND in Q4 2026 for its first RedTail lead candidate, CLD-401, targeting metastatic disease with high concentrations of IL-15 superagonist delivered to the tumor microenvironment [5]. - Calidi presented new preclinical data at ASCO on May 30, 2025, demonstrating enhanced biological efficacy of CLD-401 in immunocompetent tumor models [6]. - The Phase I study for CLD-401 is expected to include a basket of solid tumors such as non-small cell lung cancer, triple-negative breast cancer, and head and neck cancer [9]. - Calidi anticipates proof-of-concept data early in Phase I, with the initial dose cohort expected to be in the therapeutic range [9]. - The company aims to present proof of concept data for the RedTail platform's applicability in non-oncology indications [13]. Financial Performance - The company reduced term debt and notes payable by $3.1 million in 2025, from $3.8 million at December 31, 2024, to $0.7 million at December 31, 2025 [9]. - General and administrative expenses were reduced by $2.3 million in the first nine months of 2025 compared to the same period in 2024 [9]. Strategic Initiatives - The RedTail platform allows for the simultaneous delivery of tumor-localized BiTEs alongside T-cell amplifiers, addressing previous limitations in solid tumors [9]. - The company is exploring new payloads for inflammatory and immune diseases, targeting other cell types via envelope engineering [13]. - Calidi's management team was bolstered with the hiring of a new CEO and CMO, bringing extensive biopharmaceutical experience [7].

Drug Development - Calidi plans to file an IND in Q4 2026 for its first RedTail lead candidate, CLD-401, targeting metastatic disease with high concentrations of IL-15 superagonist[5]. - Calidi presented new preclinical data at ASCO on May 30, 2025, demonstrating enhanced biological efficacy of CLD-401 in immunocompetent tumor models[6]. - The Phase I study for CLD-401 is expected to include a basket of solid tumors, such as non-small cell lung cancer and triple-negative breast cancer[9]. - Calidi anticipates proof-of-concept data for the RedTail platform to deliver tumor-localized BiTEs alongside T-cell amplifiers, addressing previous efficacy limitations in solid tumors[9]. - Calidi expects to present proof-of-concept data for non-oncology indications, leveraging selective viral replication in proliferative cells[13]. Financial Performance - The company reduced term debt and notes payable by $3.1 million in 2025, from $3.8 million at December 31, 2024, to $0.7 million at December 31, 2025[9]. - G&A expenses were reduced by $2.3 million in the first nine months of 2025 compared to the same period in 2024[9]. Strategic Initiatives - The company aims to explore new payloads for inflammatory and immune diseases, targeting other cell types via envelope engineering[13]. - Calidi's RedTail platform is designed to avoid immune clearance and deliver genetic medicines effectively to metastatic sites[10]. - The management team was strengthened with the appointment of a new CEO and CMO, both with extensive biopharmaceutical experience[7].

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 October 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-02396 BRIDGFORD FOODS CORPORATION | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | Common Stock | BRID | Nasdaq Global Ma ...

Financial Performance - 4Q25 net sales reached $3,869.8 million, a 39.0% increase compared to 4Q24, driven by higher sales volumes for copper (+2.8%), molybdenum (+9.6%), zinc (+20.7%), and silver (+11.3%) [1] - 2025 net sales hit a record high of $13,420.0 million, up $1,986.6 million or 17.4% from 2024, primarily due to increased sales volumes for molybdenum (+7.4%), zinc (+19.3%), and silver (+15.3%) [1] - 4Q25 net income was $1,307.9 million, a 64.7% increase from $793.9 million in 4Q24, with a net income margin of 33.8% [1] - 2025 net income reached $4,334.9 million, 28.4% higher than in 2024, with a net income margin of 32.3% [1] - 4Q25 adjusted EBITDA was $2,310.5 million, reflecting a 53.3% increase from $1,506.7 million in 4Q24, with an adjusted EBITDA margin of 59.7% [1] - 2025 adjusted EBITDA reached $7,822.4 million, a 22.1% increase over 2024, with an adjusted EBITDA margin of 58.3% [1] Production and Sales - 2025 copper production totaled 954,270 tons, consistent with the annual plan, with a 1.4% increase in 4Q25 compared to the previous quarter [2] - Total copper production in Q4 2025 was 244,326 tons, up 2.0% from 239,457 tons in Q4 2024 [36] - Molybdenum sales increased by 9.6% in Q4 2025, totaling 7,678 tons compared to 7,008 tons in Q4 2024 [36] - Zinc sales in Q4 2025 were 50,837 tons, a 20.7% increase from 42,120 tons in Q4 2024 [36] - Total pounds of copper produced in Year 2025 reached 2,035.6 million pounds, a decrease from 2,057.7 million pounds in Year 2024, reflecting a 1.1% decline [53] Cash Flow and Investments - Cash flow from operating activities in 2025 was $4,752.1 million, a 7.5% increase from $4,421.7 million in 2024 [3] - Capital investments for the full year 2025 totaled $1,325.3 million, up from $1,027.3 million in 2024, indicating a 29.0% increase [40] - The company invested $28 million in four projects under the Public Works for Taxes program, benefiting over 5,000 people in Peru [28] Shareholder Returns - Dividends paid increased by 57.1% to $1.10 per share in Q4 2025 from $0.70 per share in Q4 2024 [37] - The company paid dividends of $731.0 million in Q4 2025, compared to $549.9 million in Q4 2024, representing a 32.9% increase [40] Assets and Equity - As of December 31, 2025, total assets increased to $21,381.4 million from $18,713.4 million in 2024, representing a growth of 14.1% [38] - Total stockholders' equity rose to $11,038.1 million in 2025 from $9,171.5 million in 2024, reflecting an increase of 20.4% [38] - The number of shares outstanding increased to 819.1 million in 2025 from 790.4 million in 2024, a growth of 3.6% [38] Costs and Expenses - Cost of sales (exclusive of depreciation, amortization, and depletion) for Q4 2025 was $1,471.5 million, compared to $1,211.8 million in Q4 2024, representing a 21.5% increase [53] - Operating cash cost before by-product revenues for Year 2025 was $4,418.8 million, slightly up from $4,389.5 million in Year 2024, indicating a 0.7% increase [53] - Selling, general and administrative expenses for Year 2025 totaled $137.8 million, compared to $130.5 million in Year 2024, reflecting a 5.6% increase [53] - Workers' participation costs for Year 2025 were $463.1 million, significantly higher than $296.5 million in Year 2024, indicating a 56.2% increase [53] - Purchased concentrates from third parties for Year 2025 amounted to $284.0 million, up from $162.4 million in Year 2024, representing a 74.7% increase [53] - Treatment and refining charges net of sales premiums for Year 2025 were $(153.6) million, compared to $(39.5) million in Year 2024, indicating a significant increase in costs [53] - Inventory change for Year 2025 was $(16.7) million, a decrease from $12.8 million in Year 2024, reflecting a shift in inventory management [53] Project Development - The Tía María project is 24% complete with a capital budget of $1.8 billion, expected to generate $20.2 billion in exports and $4.6 billion in taxes over its first 20 years [6] - The company aims to produce 1.6 million tons of copper by 2033, supported by a disciplined investment strategy and project pipeline [7] Recognition and Awards - The company recognized for its commitment to safety with the "Casco de Plata" award for best performance in occupational safety [27]

Financial Performance - Revenue for Q1 FY26 totaled $1.21 billion, with net revenue of $1.04 billion, representing an 8% increase excluding USAID/DOS and Q1-25 Hurricanes[3][6] - Operating income was $141 million, and adjusted EBITDA was $147 million, with an adjusted EBITDA margin improvement of 80 basis points year-over-year[3][7] - EPS increased by 17% year-over-year to $0.40, while adjusted EPS was $0.35[3][6] - Revenue for the three months ended December 28, 2025, was $1,210.7 million, a decrease of 15% compared to $1,420.6 million for the same period in 2024[22] - Gross profit for the same period was $220.4 million, slightly down from $221.5 million year-over-year[22] - Net income attributable to Tetra Tech for the three months ended December 28, 2025, was $105.0 million, compared to $0.7 million in the prior year, representing a significant increase[22] - Earnings per share attributable to Tetra Tech was $0.40 for the three months ended December 28, 2025, compared to a loss in the same period last year[22] - Adjusted EBITDA for the three months ended December 28, 2025, was $147.3 million, compared to $153.2 million in the prior year[26] Cash Flow and Operations - Cash from operations was $72 million in Q1 and $517 million over the trailing 12 months[3] - Net cash provided by operating activities was $72.3 million, a substantial increase from $13.1 million in the prior year[24] - Net cash provided by investing activities was $37.5 million, compared to a cash outflow of $3.4 million in the same period last year[24] - Cash and cash equivalents at the end of the period were $269.4 million, up from $248.1 million at the end of the same period last year[24] - Tetra Tech's DSO improved to 51 days, reflecting better cash flow management[7] Strategic Initiatives - Tetra Tech is raising its FY26 net revenue guidance to a range of $4.15 billion to $4.30 billion and adjusted EPS guidance to a range of $1.46 to $1.56[11] - The company announced two strategic acquisitions to enhance its front-end consulting services for defense clients[8] - Significant contracts include a $151 billion ten-year contract for the U.S. Missile Defense Agency and a $500 million contract for environmental services for USACE Baltimore District[7] - The company plans to continue focusing on market expansion and new product development to drive future growth[22] Shareholder Returns - The company repurchased $50 million of common stock in Q1, with $548 million remaining under its share repurchase programs[9] - The company reported a gain on the sale of a divested business amounting to $7.7 million during the quarter[24] Backlog and Future Potential - Backlog at the end of Q1 was $3.95 billion, indicating strong future revenue potential[3][6]

Financial Performance - Total revenue for Q4 2025 was $6,313 million, representing a 7.1% increase year-over-year, while full-year revenue reached $25,204 million, up 14.2% from the previous year[5] - Operating revenues for Q4 2025 reached $6,313 million, a 7.1% increase from $5,893 million in Q4 2024[29] - Consolidated net income for the year ended December 31, 2025, was $2,709 million, slightly down from $2,745 million in 2024[33] - Basic earnings per share for Q4 2025 were $1.84, compared to $1.49 in Q4 2024, reflecting a 23.5% increase[29] - Operating revenues for the year ended December 31, 2025, were reported at $25,204 million, an increase from $22,063 million in 2024, representing a growth of approximately 9.7%[53] - Income from operations for 2025 was reported at $4,308 million, down from $4,063 million in 2024, indicating a decrease of approximately 6.0%[53] - The company reported a net income attributable to Waste Management, Inc. for the year ended December 31, 2025, was reported at $2,708 million, with a diluted earnings per share of $6.70[51] Cash Flow and Capital Expenditures - Free cash flow in 2025 was $2.94 billion, an increase of 26.8% compared to the prior year, with net cash provided by operating activities at $6.04 billion, up 12.1%[11] - Cash flows from operating activities for the year were $6,043 million, up from $5,390 million in 2024, indicating a 12.1% increase[33] - Capital expenditures for the year were $3,227 million, consistent with $3,231 million in 2024[33] - Projected free cash flow for 2026 is estimated to be between $3,750 million and $3,850 million, depending on different scenarios[61] EBITDA and Margins - Operating EBITDA for the total company grew 13.3% in 2025, with an adjusted operating EBITDA margin exceeding 30% for the first time, reaching 30.1% for the full year[4] - Adjusted operating EBITDA for the year ended December 31, 2025, was $7,582 million, with an adjusted operating EBITDA margin of 30.1%[51] - The adjusted operating EBITDA margin for the three months ended December 31, 2025, was 31.3%, up from 28.9% in the same period of 2024[45] - Adjusted operating EBITDA for 2026 is projected to be between $8,150 million and $8,250 million, indicating a growth of 6.2% on a comparable basis[13] Shareholder Returns - The company plans to return approximately $3.5 billion to shareholders in 2026 through dividends and share repurchases[2] Business Segments and Growth - The Healthcare Solutions business achieved an operating EBITDA margin of 13.5% in 2025, up from 1.0% in 2024, with further improvements expected in 2026[8] - The company invested approximately $400 million in acquisitions in 2025, focusing on solid waste and recycling businesses[11] - Acquisitions during the year resulted in gross annualized revenue of $2,622 million, with total consideration net of cash acquired amounting to $6,720 million[40] Sustainability and Future Projects - WM anticipates completing six additional renewable natural gas plants and four recycling projects in 2026 as part of its sustainability growth strategy[15] - The company anticipates capital spending of about $85 million in 2026 for renewable natural gas facilities and a new recycling growth project, expected to contribute to operating EBITDA by 2028[10] Pricing and Market Conditions - The company reported a blended average price for single-stream recycled commodities of approximately $62 per ton in the quarter, down from $87 per ton in the prior year period[7] - The average price for renewable natural gas sold in 2025 was about $31 per MMBtu, with expectations to generate between 21 and 22 million MMBtu of renewable natural gas in 2026[21] - The company has contracted 60% of its renewable natural gas at a blended average price of about $27 per MMBtu for 2026[21] - The 2026 financial outlook includes a blended average single-stream recycled commodity price of approximately $70 per ton, with a $10 per ton change impacting operating EBITDA by approximately $27 million[21] Debt and Liabilities - Long-term debt decreased to $22,196 million in 2025 from $22,541 million in 2024, a reduction of 1.5%[31] - The total liabilities decreased to $35,844 million in 2025 from $36,313 million in 2024, a decline of 1.3%[31] Operational Efficiency - Operating expenses as a percentage of revenue for the Legacy Business improved by 150 basis points in 2025, reflecting effective cost management strategies[7] - Operating expenses as a percentage of revenues for 2025 were 59.6%, a slight decrease from 60.7% in 2024[57] - Adjusted SG&A expenses for 2025 were $14,996 million, compared to $13,382 million in 2024, indicating an increase of approximately 12.1%[57] Conference Call - The company will host a conference call on January 29, 2026, to discuss the fourth quarter and full-year 2025 results[18]

Financial Performance - Net sales for the fiscal year ended October 31, 2025, totaled $96,283,547, an increase of $17,721,249, or 23%, from $78,562,298 for the fiscal year ended October 31, 2024[138]. - Cost of sales for the fiscal year ended October 31, 2025, was $80,868,881, or 84% of net sales, compared to $62,520,529, or 80% of net sales, for the fiscal year ended October 31, 2024[139]. - Gross profit for the fiscal year ended October 31, 2025, was $15,414,666, a decrease of $627,103 from $16,041,769 for the fiscal year ended October 31, 2024, with gross profit as a percentage of net sales decreasing to 16% from 20%[140]. - Operating expenses increased by $184,095 to $13,262,306 for the fiscal year ended October 31, 2025, from $13,078,211 for the fiscal year ended October 31, 2024[141]. - Net income for the fiscal year ended October 31, 2025, was $1,403,439, or $0.25 per share, compared to net income of $2,218,014, or $0.39 per share, for the fiscal year ended October 31, 2024[145]. Cash Flow and Working Capital - Working capital as of October 31, 2025, was $22,633,292, representing a $1,106,309 increase from $21,526,983 as of October 31, 2024[146]. - Operating activities used net cash of $5,018,989 for the fiscal year ended October 31, 2025, compared to net cash provided of $5,431,211 for the fiscal year ended October 31, 2024[152]. - Investing activities used net cash of $1,710,162 for the fiscal year ended October 31, 2025, compared to net cash provided of $2,843,069 for the fiscal year ended October 31, 2024[153]. - Financing activities had net cash used of $6,050,000 for the fiscal year ended October 31, 2025, compared to $9,627,234 for the fiscal year ended October 31, 2024[154]. Hedging and Risk Management - The net result of hedging activities for the fiscal year ended October 31, 2025, resulted in a gain of approximately $1.8 million, compared to a gain of approximately $1.6 million for the fiscal year ended October 31, 2024[139]. - The company utilizes short-term coffee futures and options contracts to hedge against price volatility, but remains exposed to potential losses during significant price declines[44]. Business Strategy and Market Position - The company expects to fund its operations, including liabilities and capital expenditures, through cash provided by operating activities and its credit facility until October 31, 2026[155]. - The company holds trademarks for all eight proprietary coffee brands and an exclusive license for S&W brands in the U.S., emphasizing brand recognition as crucial for success[45]. - The company sells private label and branded coffee to major retail and wholesale customers in the U.S., with contracts that may include minimum and maximum purchase obligations[46][47]. - The company conducts in-store promotions and marketing through trade shows, publications, and its website to capture changing consumer preferences[48][49]. - The company aims to grow by introducing new brand names and products across multiple price points, including specialty blends and peripheral products[50]. - The coffee market is highly competitive, with the company positioning itself as a value-added supplier to small specialty gourmet coffee roasters[51]. - The main competitor in private label sales is Massimo Zanetti Beverage Company, which has greater resources, but the company focuses on quality and customer service to remain competitive[52]. - The branded coffee market is dominated by Kraft Foods and J.M. Smucker Co., but the company's brands have a strong regional presence and cater to specific demographics[53]. Compliance and Regulations - The company is in compliance with all material laws and regulations related to its operations, which include obtaining necessary licenses and permits[54][55].

Credit and Market Risks - The company faces significant credit risk associated with customer and principal securities and derivative transactions, which may lead to counterparty nonperformance [75]. - Market risk is inherent in the company's operations, with fluctuations in interest rates, equity prices, and credit quality potentially impacting revenues and asset values [77]. - A considerable portion of revenues is derived from trading activities, which may incur losses due to market volatility and adverse price movements in securities [81]. - Investment banking revenues are directly related to economic conditions, with reduced expectations of U.S. economic growth potentially leading to decreased financial market activity [94]. - Revenues from asset management businesses may be negatively impacted by declining and fluctuating securities prices, affecting overall profitability [96]. - Geopolitical tensions, such as the conflict between Russia and Ukraine, could create economic disruptions and volatility in financial markets, adversely affecting the company's operations [87]. - Climate change and natural disasters may disrupt business operations and negatively impact the profitability of certain investments [90]. - Abrupt changes in market conditions could lead to decreased revenues and operational volatility, impacting overall business strategies [100]. - Unfavorable economic conditions could adversely affect demand for loans and the servicing of loans, impacting profitability [112]. Operational and Compliance Risks - The company is dependent on liquidity from subsidiaries, which may face regulatory restrictions limiting dividend payments and fund availability [84]. - The company’s risk management processes are designed to limit exposure, but there is no assurance that these measures will prevent losses [101]. - Operational risks, including failures in data processing systems, could impair liquidity and result in financial losses or regulatory intervention [107]. - Cybersecurity incidents are on the rise, posing risks to the secure processing and storage of sensitive information, which could lead to reputational damage and financial losses [113]. - The reliance on third-party service providers introduces risks related to information security and operational continuity [111]. - Employee misconduct or fraud poses risks that could lead to significant legal liability and reputational harm, impacting client retention [126]. - Compliance with the Dodd-Frank Act has resulted in significant operational costs, with ongoing expenditures expected due to complex regulatory requirements [129]. - The evolving legal and regulatory environment regarding AI may require changes in the company's operations and increase compliance risks [121]. - Regulatory changes, such as the transition to a T+1 settlement cycle, may require significant investments and could affect revenue and profitability [139]. - Compliance with financial capital holding requirements may restrict broker-dealers' ability to engage in capital-intensive activities, impacting operations [150]. - Legal liabilities from lawsuits could have a material adverse financial effect and harm the company's reputation [152]. - Changes in tax laws could significantly increase effective tax rates, adversely affecting cash flow and financial condition [153]. Financial Performance and Shareholder Returns - Net revenues for the year ended November 30, 2025, were $7.34 billion, representing a 4.4% increase from $7.03 billion in 2024 [187]. - Net earnings attributable to common shareholders decreased to $630.8 million in 2025 from $669.3 million in 2024, a decline of 5.7% [188]. - Investment banking net revenues reached $3.79 billion, up 10.0% from $3.44 billion in the previous year, with advisory revenues increasing by 18.4% to $2.15 billion [199]. - Total underwriting net revenues were $1.64 billion, reflecting a 10.3% increase compared to $1.49 billion in 2024, driven by higher debt underwriting activity [200]. - Equities net revenues were a record $1.91 billion, up 19.8% from $1.59 billion in 2024, attributed to strong client activity and market share gains [203]. - Fixed income net revenues decreased by 22.0% to $909.9 million from $1.17 billion in the prior year, impacted by lower global activity levels [205]. - The effective tax rate improved to 21.2% in 2025 from 29.2% in 2024 [188]. - The company returned an aggregate of $432.6 million to shareholders during the year ended November 30, 2025, including $374.1 million in cash dividends and $58.5 million for share repurchases [263]. Employee and Operational Changes - The financial services industry experiences high turnover, leading to increased costs for retaining skilled professionals, including guaranteed contracts and higher compensation [103]. - Competition for qualified personnel is intense, which may require significant resources to attract and retain employees, impacting financial condition and operational results [104]. - The company had 7,787 employees globally as of November 30, 2025, a slight decrease from 7,822 in 2024 [190]. - Total non-interest expenses rose to $6.47 billion, an increase of 7.4% from $6.03 billion in the prior year [224]. - Compensation and benefits expense was $3.86 billion, compared to $3.66 billion in the prior year, with a percentage of net revenues at 52.6% for 2025 [227]. Strategic Initiatives and Investments - Future acquisitions and dispositions may significantly alter the company's asset composition and business mix, affecting financial condition and securities value [124]. - The company entered into an agreement to acquire a 50% interest in Hildene Holding Company, LLC, contributing $340.0 million in cash and existing revenue share [230]. - The planned formation of a joint venture in Japan with SMBC Group is expected to launch in January 2027, integrating global equities platforms [236]. - The company completed the sale of Foursight in April 2024 as part of its strategy to liquidate legacy investments [262]. Asset and Financial Position - Total assets increased by 18.1% from $64.36 billion in 2024 to $76.01 billion in 2025 [267]. - Cash and cash equivalents rose by 15.6% from $12.15 billion in 2024 to $14.04 billion in 2025 [267]. - Financial instruments owned increased by 14.8% from $24.14 billion in 2024 to $27.72 billion in 2025, driven by client facilitation trades in corporate equity securities [268]. - Financial instruments sold, not yet purchased, grew by 21.0% from $11.01 billion in 2024 to $13.32 billion in 2025 [268]. - Total securities borrowed and purchased under agreements to resell increased by 25.0% from $13.39 billion in 2024 to $16.74 billion in 2025 [267]. - The average month-end balance of total reverse repos and stock borrows was 23.4% higher than the balance at November 30, 2025 [272]. - The company maintains a robust capital plan to support its operating model through stressed conditions, ensuring adequate financial resources [264]. - The company issued $1.5 billion aggregate principal amount of 5.500% Senior Notes due 2036 in January 2026 [265]. - The overall net inventory position increased from $13.13 billion in 2024 to $14.40 billion in 2025, primarily due to increases in derivative contracts and corporate debt [268]. - The company actively monitors its financial condition and the composition of its assets and liabilities, ensuring liquidity through daily valuation of a significant portion of its financial instruments [271].