Sales Performance - Comparable sales for Macy's, Inc. increased by 2.5% on an owned basis and 3.2% on an owned-plus-licensed-plus-marketplace (O+L+M) basis in Q3 2025 compared to Q3 2024[95] - Bloomingdale's achieved its highest comparable sales growth in 13 quarters, with an increase of 8.8% on an owned basis and 9.0% on an O+L+M basis[95] - Comparable sales increased by 3.2% on an owned-plus-licensed-plus-marketplace basis for the 13 weeks ended November 1, 2025[134] - The company experienced a decrease in comparable sales on an owned basis of 2.4% for the 13 weeks ended November 1, 2025[136] - The impact of departments licensed to third parties and marketplace sales contributed an additional 0.7% to comparable sales for the same period[134] Financial Results - Net sales for Q3 2025 were $4,713 million, a decrease of $29 million or 0.6% from Q3 2024, primarily due to the closure of 64 non-go-forward locations[97] - Net sales for the 39 weeks ended November 1, 2025, decreased by $400 million, or 2.8%, to $14,125 million compared to $14,525 million in 2024, primarily due to the closure of 64 non-go-forward locations[105] - Net sales for the 13 weeks ended November 1, 2025, were $165 million, with a net loss of $197 million for the same period[128] - Net income decreased to $135 million for 2025, compared to $240 million in 2024[104] - The company reported a net income of $11 million for the 13 weeks ended November 1, 2025, with diluted earnings per share of $0.04[142] Margins and Expenses - Gross margin for Q3 2025 was $1,858 million, representing a gross margin rate of 39.4%, a decline of 20 basis points from Q3 2024[99] - Gross margin decreased to $5,575 million, or 39.5% of total revenue, from $5,776 million, or 39.8% in 2024, primarily due to markdowns and tariffs[107] - Selling, general and administrative (SG&A) expenses decreased by $40 million or 1.9% in Q3 2025, with SG&A as a percentage of total revenue improving to 41.2%[100] - Selling, general and administrative (SG&A) expenses decreased by $67 million, or 1.1%, to $5,881 million, representing 40.0% of total revenue, compared to 39.7% in 2024[108] Earnings and Tax - Adjusted diluted earnings per share for Q3 2025 were $0.09, compared to $0.04 in Q3 2024[96] - The effective tax rate for Q3 2025 was -120.0%, reflecting an income tax benefit of $6 million, compared to an expense of $7 million or 20.0% in Q3 2024[103] - Adjusted EBITDA for 2025 was $1,002 million, down from $1,074 million in 2024[104] - Adjusted EBITDA for the 39 weeks ended November 1, 2025, was $1,002 million, compared to $1,074 million for the same period in 2024[140] Assets and Liabilities - Current assets decreased from $1,160 million to $1,087 million, while noncurrent assets increased from $5,727 million to $5,598 million[127] - Total liabilities increased from $8,837 million to $8,237 million, with current liabilities rising from $1,606 million to $1,744 million[127] Capital Expenditures and Share Repurchase - Capital expenditures were $525 million in 2025, focused on digital and technology investments, compared to $649 million in 2024[118] - The company repurchased approximately 15.4 million shares at an average cost of $13.05 per share during 2025, with $1,174 million remaining under the share repurchase authorization[121] Operational Efficiency - The company opened a new fulfillment and store replenishment center, China Grove, which incorporates automation and AI to enhance supply chain efficiency[94] - The company emphasized the importance of non-GAAP financial measures, such as EBITDA, in evaluating operational efficiency and performance[130]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________ FORM 10-Q ___________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 001-42934 ________________ ...

Financial Position and Indebtedness - The company has a substantial amount of goodwill on its balance sheet, which may lead to future write-offs that could decrease earnings or increase losses[96] - Following the acquisition of DLH, LLC in December 2022, the company amended its credit agreement, incurring additional indebtedness and modifying financial covenants[97] Dividends and Stock Ownership - The company has not paid dividends on its common stock since inception and does not anticipate paying any in the foreseeable future[100] - As of September 30, 2025, executive officers, directors, and significant stockholders own approximately 41% of the outstanding common stock, which may influence corporate decisions[105] Revenue and Operating Results - The company may experience fluctuations in revenues and operating results due to various factors, including government budgetary delays and contract timing[107] - Increased costs in supply and labor markets due to inflation could adversely affect the company's ability to compete and reduce profits[110] Legal and Insurance Risks - The company is exposed to legal proceedings and disputes, which could result in substantial monetary damages if unfavorable rulings occur[111] - The company does not maintain "key personnel" life insurance on its executive officers, which could materially affect operations if key personnel are lost[112] - The company may not be fully covered by insurance, and inability to renew insurance plans could adversely impact its business[113] Employee Costs and Tax Liabilities - Increases in employee healthcare claims and insurance premiums could significantly affect the company's direct costs and profit margins[114] - Changes to U.S. tax laws may require adjustments in accounting, potentially affecting profitability due to increased tax liabilities and audits[116] Compliance and Operational Risks - Compliance with the Sarbanes-Oxley Act has led to significant management resource allocation, resulting in increased accounting and legal expenses[117] - Future operations may be adversely impacted by global health events, creating volatility and economic disruption, affecting customer demand and service delivery[118] Market Risks and Interest Rates - The company has limited exposure to market risks, with no material engagement in trading practices that would expose it to interest rate or foreign currency risks[187] - A floating-to-fixed interest rate swap with a notional amount of $74.0 million is set to mature on September 30, 2025[187] - A 1.0% increase in SOFR would increase interest expense by approximately $0.6 million annually, with the current floating interest rate debt at 8.38%[188]

Financial Performance - Consolidated net sales for Q2 fiscal 2026 were $53.2 million, a sequential increase from $50.7 million in Q1 but a decline from $55.7 million in the prior-year period[4] - The net loss for the quarter was $(4.3) million, or $(0.34) per diluted share, an improvement from a net loss of $(5.6) million, or $(0.45) per diluted share in the prior-year period[4] - Net sales for the three months ended November 2, 2025, were $53,202, a decrease of 4.4% compared to $55,674 for the same period in 2024[20] - The net loss for the six months ended November 2, 2025, was $4,537, a significant improvement of 64.8% compared to a net loss of $12,905 for the same period in 2024[21] - Net sales for the six months ended November 2, 2025, were $103,893, a decrease of 7.4% compared to $112,211 for the same period in 2024[27] - The company reported a total net loss of $20,958 million for the trailing twelve months ended November 2, 2025[47] Profitability Metrics - Adjusted consolidated gross profit was $6.7 million, or 12.6% of sales, compared to $6.8 million, or 12.1% of sales in the prior-year period, driven by cost and efficiency gains[4] - Gross profit for the three months ended November 2, 2025, was $5,782, down 3.5% from $5,990 in the prior year, resulting in a gross margin of 10.9%[20] - Gross profit for the six months ended November 2, 2025, was $13,010, representing a 17.6% increase from $11,066 in the prior year[27] - The gross margin for the bedding segment improved significantly to 10.3% from 3.6% year-over-year, while the upholstery segment's gross margin decreased to 17.5% from 18.2%[27] - Adjusted EBITDA for the quarter ended January 26, 2025, was $(457) million, reflecting a significant decrease from $(200) million in the same quarter of the previous year[47] - Adjusted EBITDA as a percentage of net sales was (2.9)% for the trailing twelve months ended November 2, 2025, compared to (3.3)% for the previous year[48] Expenses and Cost Management - Selling, general and administrative (SG&A) expenses were $8.7 million, or 16.4% of sales, showing a 7% improvement from $9.4 million, or 16.8% of sales in the prior-year period[4] - Selling, general and administrative expenses decreased by 4.3% to $17,858 for the six months ended November 2, 2025, compared to $18,655 in the prior year[21] - The company expects to achieve over $20 million in annualized cost savings and enhancements by entering fiscal 2027 due to ongoing restructuring initiatives[5] - The company experienced a restructuring expense of $1,655 million for the quarter ended January 26, 2025, compared to a restructuring credit of $(50) million for the quarter ended January 28, 2024[47] Cash Flow and Liquidity - Cash flow from operations was negative $(1.2) million for the six months ended November 2, 2025, an improvement from negative $(2.6) million in the prior-year period[13] - As of November 2, 2025, the company maintained $10.7 million in cash and $18.3 million in outstanding debt under its credit facilities[13] - Cash and cash equivalents increased to $10,728 as of November 2, 2025, from $10,531 at the end of October 27, 2024[23] - The company reported a net (debt) cash position of $(7,554) as of November 2, 2025, compared to a net cash position of $6,457 a year earlier[30] - Adjusted free cash flow for the six months ended November 2, 2025, was $10, compared to $(3,423) for the same period in 2024[31] Segment Performance - The restructured bedding segment achieved sales of $30.8 million, up approximately 10% sequentially and over 2% year-over-year, with gross profit of $3.1 million, or 10.1% of sales, a 27% improvement from the prior year[13] - Upholstery segment sales were $22.4 million, flat sequentially but down approximately 12% year-over-year, with gross profit of $3.6 million, or 16.1% of sales, down from $4.3 million, or 16.9% of sales in the prior year[13] - Bedding segment net sales increased by 1.1% to $58,809, while upholstery segment net sales decreased by 16.6% to $45,084[27] Debt and Interest - Total debt increased to $(18,282) as of November 2, 2025, from $(4,074) a year earlier, indicating a significant rise in borrowing[30] - Interest expense surged by 563.3% to $199 for the three months ended November 2, 2025, compared to $30 in the same period of 2024[20] - Interest income, net, was $(338) million for the six months ended November 2, 2025, compared to $(449) million for the same period in the previous year[47] Restructuring and Operational Changes - The company reported a restructuring credit of $3,010 for the six months ended November 2, 2025, compared to an expense of $4,662 in the same period of 2024[21] - The restructuring related charge for the six months ended November 2, 2025, was $(931), reflecting ongoing efforts to consolidate operations[27] - The restructuring credit for the six months ended November 2, 2025, included a gain from the sale of a manufacturing facility totaling $4.0 million[41] Foreign Currency and Other Losses - The company reported a foreign currency exchange loss of $136 million for the trailing twelve months ended November 2, 2025[47] - The company modified its presentation of adjusted EBITDA to exclude non-cash foreign currency exchange gains/losses starting from the quarter ended November 2, 2025, to enhance investor insight into operational performance[47]

Revenue Growth - As of October 31, 2025, the company reported an Annual Recurring Revenue (ARR) of $1,039.6 million, reflecting a significant growth in new customers and expanded sales to existing customers [149]. - The number of customers with $250,000 or more in ARR increased by 28% year-over-year, while those with over $1,000,000 in ARR grew by 39% year-over-year [135]. - SaaS ARR as of October 31, 2025, is $669.4 million, reflecting a growth strategy focused on subscription services [153]. - Subscription revenue for the three months ended October 31, 2025, is $266.16 million, a 22.3% increase from $217.64 million in the same period of 2024 [178]. - Total revenue for the nine months ended October 31, 2025, is $776.77 million, up from $621.49 million in the same period of 2024, representing a 25.1% increase [178]. - Subscription revenue increased by $48.5 million, or 22%, for the three months ended October 31, 2025, compared to the same period in 2024, primarily due to growth in SaaS and term subscription revenue [182]. - Total revenue for the three months ended October 31, 2025, was $281.9 million, an increase of $46.7 million, or 20%, compared to $235.3 million in 2024 [182]. - Total revenue for the nine months ended October 31, 2025, was $776.8 million, an increase of $155.3 million, or 25%, compared to $621.5 million for the same period in 2024 [200]. - Subscription revenue increased by $159.9 million, or 28%, for the nine months ended October 31, 2025, primarily due to growth in SaaS and term subscription revenue [200]. IPO and Debt Management - The company completed its IPO on February 14, 2025, raising approximately $1,248.2 million in net proceeds from the sale of 60.0 million shares at an initial offering price of $23.00 per share [129]. - Following the IPO, the company repaid $690.0 million of its Term Loans, with a remaining balance of $350.0 million fully repaid by March 3, 2025, incurring a loss of $15.3 million from extinguishment of debt [131]. - The company repaid $690.0 million of Term Loans from the proceeds of its IPO on February 19, 2025, and the remaining balance of $350.0 million on March 3, 2025 [232]. Operating Expenses and Profitability - Operating expenses for the nine months ended October 31, 2025, total $759.89 million, up from $554.63 million in the same period of 2024, reflecting the costs associated with being a public company [178]. - Gross profit margin for the three months ended October 31, 2025, is 66%, slightly down from 67% in the same period of 2024 [178]. - The net loss for the three months ended October 31, 2025, is $35.98 million, a decrease from a net loss of $59.42 million in the same period of 2024 [178]. - Operating expenses rose by $46.9 million, or 26%, totaling $228.7 million for the three months ended October 31, 2025, primarily due to increases in research and development, sales and marketing, and general and administrative expenses [193]. - The company recorded a GAAP income (loss) from operations of $(24,497) thousand for the three months ended October 31, 2025, improving from $(41,622) thousand in 2024 [226]. - The company reported a net loss of $233.8 million for the nine months ended October 31, 2025, adjusted by non-cash charges of $344.3 million [242]. Research and Development - Research and development expenses increased to $51.21 million for the three months ended October 31, 2025, compared to $39.25 million in the same period of 2024, reflecting ongoing investment in product development [178]. - Research and development expenses increased by $12.0 million, or 30%, for the three months ended October 31, 2025, driven by higher employee-based costs and equity-based compensation [193]. - Research and development expenses increased by $42.3 million, or 34%, for the nine months ended October 31, 2025, primarily due to higher equity-based compensation [210]. Customer Retention and Market Presence - The dollar-based net retention rate remains stable at 114% for both October 31, 2025, and October 31, 2024, indicating strong customer retention and expansion [154]. - The company generated 67% of its revenue from the United States for the three months ended October 31, 2025, with 19% from EMEA and 14% from the rest of the world [141]. - The company expects subscription revenue to increase as a percentage of total revenue as it focuses on its SaaS offerings as a strategic priority [161]. Cash Flow and Liquidity - Free cash flow for the nine months ended October 31, 2025, was $(5,700) thousand, an improvement compared to $(131,700) thousand in 2024, driven by higher revenue growth [230]. - The company believes existing cash and cash equivalents will be sufficient to meet liquidity and capital expenditure requirements for at least the next 12 months [235]. - For the nine months ended October 31, 2025, net cash provided by operating activities was $6.7 million, a significant improvement from a net cash used of $120.2 million in the same period of 2024 [242][243]. - Cash provided by financing activities was $202.0 million during the nine months ended October 31, 2025, primarily due to proceeds from the IPO [247]. Equity-Based Compensation - The company recognized $113.8 million in equity-based compensation expense during the three months ended April 30, 2025, due to modifications related to the IPO [127]. - General and administrative expenses increased by $12.2 million, or 45%, for the three months ended October 31, 2025, largely due to higher equity-based compensation and employee-related costs [195]. - General and administrative expenses surged by $78.8 million, or 98%, for the nine months ended October 31, 2025, driven by increased equity-based compensation [212]. Strategic Initiatives - The company launched new offerings in non-employee risk management and cloud infrastructure entitlement management, focusing on AI investments to enhance its solutions [143]. - The company expects license revenue as a percentage of total revenue to continue to decrease over time as it shifts focus from perpetual licenses to subscriptions [183].

Financial Performance - Q2 total revenues reached $16.1 billion, up 14% in USD and 13% in constant currency[2] - Total revenues for Q2 fiscal 2026 reached $16.0 billion, a 14% increase compared to $14.0 billion in Q2 fiscal 2025[16] - Total revenues for the six months ended November 30, 2025, were $30.98 billion, representing a 13% increase compared to $27.36 billion in the same period of 2024[24] - Total revenues for Q2 Fiscal 2026 reached $15,058 million, reflecting a 13% growth compared to the same quarter last year[36] - The total revenues for the year-to-date period amounted to $30.9 billion, reflecting strong performance across the business[37] Income and Earnings - Q2 GAAP net income was $6.1 billion, up 95% year-over-year, while non-GAAP net income increased by 57% to $6.6 billion[3][5] - Net income for Q2 fiscal 2026 was $6.13 billion, a significant increase of 95% compared to $3.15 billion in Q2 fiscal 2025[16] - The company reported a net income of $9.06 billion for the six months ended November 30, 2025, a 49% increase from $6.08 billion in the same period of 2024[21] - Net income increased to $9.062 billion, a 49% rise from $6.086 billion in the previous year, resulting in diluted earnings per share of $3.11, up 46% from $2.13[24] - GAAP net income for Q2 Fiscal 2026 was $15,420 million, up from $12,440 million in Q2 Fiscal 2025, marking a 24% increase[33] Earnings Per Share - GAAP earnings per share rose by 91% to $2.10, and non-GAAP earnings per share increased by 54% to $2.26[3][5] - Diluted earnings per share for Q2 fiscal 2026 were $2.10, up 91% from $1.10 in Q2 fiscal 2025[16] - Diluted earnings per share of $3.11, up 46% from $2.13[24] Cash Flow and Expenses - Operating cash flow for the last twelve months was $22.3 billion, reflecting a 10% increase[4] - Free cash flow for the trailing four quarters was $9,542 million, with a year-over-year growth rate of 19%[33] - Operating cash flow as a percentage of net income was 145% in Q2 Fiscal 2026, down from 173% in the previous year, indicating a change in cash efficiency[33] - Total operating expenses for the six months ended November 30, 2025, were $21.98 billion, a 15% increase from $19.16 billion in the same period of 2024[21] Cloud Business - Cloud revenues grew by 34% in USD to $8.0 billion, with Cloud Infrastructure (IaaS) revenue up 68% to $4.1 billion[6] - Oracle's Multicloud database business grew by 817% in Q2, indicating strong market demand[5] - Cloud revenues for the six months ended November 30, 2025, were $15.16 billion, representing a 31% increase from $11.56 billion in the same period of 2024[21] - Cloud revenues for Q2 Fiscal 2026 were $7,970 million, representing a 31% growth year-over-year[36] Assets and Liabilities - Total current assets rose to $34.366 billion, up from $24.579 billion as of May 31, 2025, driven by increases in cash and cash equivalents and trade receivables[29] - Total assets increased to $204.984 billion from $168.361 billion, reflecting growth in both current and non-current assets[29] - The company’s total non-current liabilities increased to $136.732 billion from $114.749 billion, primarily due to higher borrowings[29] Research and Development - Research and development expenses for Q2 fiscal 2026 were $668 million, compared to $657 million in Q2 fiscal 2025, reflecting a 2% increase[17] Tax and Amortization - The effective GAAP tax rate for Q2 fiscal 2026 was 3.3%, compared to 7.1% in Q2 fiscal 2025[17] - The effective GAAP tax rate for the first half of fiscal 2026 was 7.2%, compared to 7.3% in the same period of 2025[25] - Estimated future annual amortization expense related to intangible assets is projected to be $812 million for the remainder of fiscal 2026[25] Dividends and Stock-Based Compensation - The board declared a quarterly cash dividend of $0.50 per share, payable on January 23, 2026[7] - Total stock-based compensation for the six months ended November 30, 2025, was $2.280 billion, compared to $2.176 billion in the same period of 2024[25] Strategic Focus - Oracle is committed to chip neutrality, focusing on collaboration with various CPU and GPU suppliers[5] - The company is building 72 Oracle Multicloud datacenters, enhancing its cloud infrastructure capabilities[5] - The financial results indicate a robust growth trajectory, with a focus on strategic initiatives and market expansion[39] - Future performance will be evaluated based on these non-GAAP measures, which are integral to the company's operational decision-making[39]

Revenue Performance - Fourth quarter revenue for fiscal year 2025 was $2.255 billion, a 38% increase from $1.636 billion in the same quarter of fiscal year 2024[2] - Full-year revenue for fiscal year 2025 reached $7.054 billion, reflecting a 15% increase from $6.127 billion in fiscal year 2024[2] - Total revenue for the twelve months ended October 31, 2025, increased to $7,054,178, up from $6,127,436 in the previous year, representing a growth of approximately 15.1%[33] - Revenue from the Design Automation segment for the twelve months ended October 31, 2025, was $5,302.4 million, up 25.6% from $4,221.1 million in 2024[44] - The Design IP segment revenue decreased to $1,751.8 million in 2025, down 8.1% from $1,906.3 million in 2024[44] Income and Earnings - Non-GAAP net income for the fourth quarter of fiscal year 2025 was $543.1 million, or $2.90 per diluted share, compared to $529.9 million, or $3.40 per diluted share, in the fourth quarter of fiscal year 2024[6] - GAAP net income for fiscal year 2025 was $1.336 billion, or $8.07 per diluted share, down from $1.442 billion, or $9.25 per diluted share, in fiscal year 2024[5] - Non-GAAP earnings per diluted share for fiscal year 2025 was $12.91, compared to $13.20 in fiscal year 2024[6] - Net income attributed to Synopsys for the twelve months ended October 31, 2025, was $1,332,220, compared to $2,263,380 in the previous year, indicating a decrease of about 41.2%[34] - Net income for the twelve months ended October 31, 2025, was $1,333,251, a decrease of 40.4% compared to $2,235,810 in 2024[40] Backlog and Future Expectations - The company reported a record backlog of $11.4 billion, indicating strong business resilience[3] - The company expects fiscal year 2026 revenue to be approximately $9.610 billion, including $2.9 billion from Ansys[4] - The anticipated impact of divested businesses is approximately $110 million on revenue for fiscal year 2026[4] Expenses and Costs - Research and development expenses for the twelve months ended October 31, 2025, were $2,479,338, an increase from $2,082,360 in the previous year, reflecting a growth of approximately 19.1%[33] - Total current assets decreased to $6,012,102 as of October 31, 2025, from $6,469,666 a year earlier, a decline of about 7.1%[36] - Total liabilities increased to $19,897,446 as of October 31, 2025, compared to $4,050,355 in the previous year, showing a significant rise[36] - The company reported a gross margin of $5,430,629 for the twelve months ended October 31, 2025, compared to $4,882,147 in the previous year, representing an increase of approximately 11.2%[33] Strategic Initiatives - The company plans to integrate Ansys fully and drive operational efficiency in fiscal year 2026[3] - The company plans to reallocate resources in its Design IP segment to focus on higher growth opportunities, indicating a strategic shift[30] - Synopsys expects to realize synergies from the integration of Ansys, which is anticipated to impact future performance positively[30] - The company has planned stock repurchases as part of its capital allocation strategy, reflecting confidence in its financial position[30] Cash Flow and Financing - Cash flows from operating activities increased to $1,518,608 in 2025 from $1,407,029 in 2024, reflecting a growth of 7.9%[40] - Cash, cash equivalents, and restricted cash at the end of the period were $2,893,721, down from $3,898,729 at the beginning of the year, reflecting a decrease of 25.7%[41] - The company reported a net cash used in investing activities of $(15,881,269) in 2025, compared to a net cash provided of $1,223,013 in 2024[40] - Proceeds from debt in financing activities amounted to $14,329,340 in 2025, with a significant increase compared to no proceeds in 2024[40] Operating Margins - Adjusted operating income for the Design Automation segment increased to $2,213.5 million in 2025, a rise of 35.6% from $1,631.9 million in 2024[44] - Total adjusted segment operating income for the twelve months ended October 31, 2025, was $2,632.9 million, compared to $2,362.1 million in 2024, marking an increase of 11.4%[46] - The adjusted operating margin for the Design Automation segment improved to 41.7% in 2025 from 38.7% in 2024[44] Tax and Restructuring - Synopsys will transition to a three-year normalized non-GAAP tax rate starting in fiscal year 2026, enhancing consistency across reporting periods[60] - The projected annual non-GAAP tax rate is influenced by the acquisition of Ansys in Q3 of fiscal year 2025 and the enactment of the One Big Beautiful Bill Act, affecting taxable income from fiscal year 2026[60] - Restructuring activities are initiated to align costs with operating plans, including severance and facility closures, which are not considered part of core operations[58] Core Business Assessment - Gains and losses from the sale of equity investments in privately held companies are excluded from core business assessments[59] - Changes in the fair value of non-qualified deferred compensation plans are not used to assess core profitability[59] Company Overview - Synopsys is a leader in engineering solutions, focusing on silicon design, IP, simulation, and analysis solutions[62] - The company partners with customers across various industries to enhance R&D capabilities and productivity[62]

Financial Performance - Consolidated net sales for Q3 fiscal 2025 were $307 million, a slight decrease of 0.2% from $308 million in Q3 fiscal 2024[2] - GAAP loss per share was $4.28, compared to a loss of $0.25 in Q3 fiscal 2024; adjusted loss per share was $0.92 versus $0.11 in the prior year[2] - Gross profit for Q3 Fiscal 2025 was $185.3 million, down 4.7% from $194.5 million in Q3 Fiscal 2024[31] - Operating loss for Q3 Fiscal 2025 was $85.1 million, compared to an operating loss of $6.2 million in Q3 Fiscal 2024[31] - Net loss for Q3 Fiscal 2025 was $63.7 million, compared to a net loss of $3.9 million in Q3 Fiscal 2024[31] - Consolidated net sales were $307.3 million in Q3 2025, a slight decrease of 0.2%, and $1,103.3 million for the first nine months, down 2.0%[36] - The company's gross profit for Q3 2025 was $185.3 million, down 4.8% from the previous year, and $685.2 million for the first nine months, a decrease of 4.6%[36] - Operating income for the consolidated entity was a loss of $85.1 million in Q3 2025, compared to a loss of $6.2 million in Q3 2024, and a loss of $23.5 million for the first nine months compared to a profit of $98.7 million in the previous year[36] - Net earnings for Q3 2025 were a loss of $63.7 million, compared to a loss of $3.9 million in Q3 2024, and a loss of $20.8 million for the first nine months compared to a profit of $75.1 million in the previous year[36] - The company reported a net earnings per diluted share loss of $4.28 in Q3 2025, compared to a loss of $0.25 in Q3 2024, and a loss of $1.39 for the first nine months compared to a profit of $4.74 in the previous year[36] Sales and Revenue - Full-price direct-to-consumer sales increased by 3% to $206 million, with e-commerce sales rising 5% to $106 million[5] - Tommy Bahama's net sales decreased by 4.4% to $154.2 million in Q3 2025, and by 5.2% to $599.3 million for the first nine months[35] - Lilly Pulitzer's net sales increased by 7.3% to $74.9 million in Q3 2025, and by 5.7% to $264.3 million for the first nine months[35] - Johnny Was reported a net sales decline of 8.4% to $42.2 million in Q3 2025, and a decrease of 11.2% to $131.1 million for the first nine months[35] - Emerging Brands achieved a net sales increase of 17.0% to $36.1 million in Q3 2025, and a 12.5% increase to $108.9 million for the first nine months[35] Expenses and Costs - Gross margin decreased to 60.3% from 63.1% in Q3 fiscal 2024, primarily due to increased costs from tariffs and a shift in sales mix[5] - SG&A expenses for Q3 Fiscal 2025 were $212.6 million, an increase of 3.9% from $204.7 million in Q3 Fiscal 2024[31] - Impairment of goodwill and intangible assets amounted to $61.0 million in Q3 Fiscal 2025, with no such charges in Q3 Fiscal 2024[31] - The impairment of goodwill and intangible assets was $61.0 million in Q3 2025, representing 19.8% of net sales[36] Future Projections - The company expects full-year net sales to be between $1.47 billion and $1.49 billion, down from $1.52 billion in fiscal 2024[10] - GAAP loss per share for fiscal 2025 is projected to be between $1.52 and $1.32, including noncash impairment charges of $61 million[10] - Capital expenditures for fiscal 2025 are expected to be approximately $120 million, down from $134 million in fiscal 2024[15] - GAAP net earnings per diluted share guidance for Fiscal 2025 is $(1.52) to $(1.32), compared to $5.87 in Fiscal 2024[37] - Adjusted net earnings per diluted share guidance for Fiscal 2025 is $2.20 to $2.40, down from $6.68 in Fiscal 2024[37] Dividends and Shareholder Returns - The Board of Directors declared a quarterly cash dividend of $0.69 per share, payable on January 30, 2026[9] - The company declared dividends of $0.69 per share in Q3 Fiscal 2025, compared to $0.67 per share in Q3 Fiscal 2024[31] Inventory and Assets - Inventory increased by $1 million, or 1%, on a LIFO basis compared to the end of Q3 fiscal 2024[6] - Total assets increased to $1.28 billion as of November 1, 2025, compared to $1.22 billion as of November 2, 2024[29] - Long-term debt rose to $140.4 million in Q3 Fiscal 2025, up from $57.8 million in Q3 Fiscal 2024[29] - Cash and cash equivalents at the end of Q3 Fiscal 2025 were $8.0 million, compared to $7.0 million at the end of Q3 Fiscal 2024[33] Store Expansion - The company plans to open approximately 15 new full-price stores by the end of fiscal 2025, including three new Marlin Bars and a full-service restaurant[15] - Total Tommy Bahama retail locations increased from 160 in Q1 Fiscal 2024 to 166 by Q4 Fiscal 2024[39] - Johnny Was full-price retail stores remained stable at 77 from Q2 to Q4 Fiscal 2024[39] - The number of Southern Tide full-price retail stores increased from 20 in Q1 Fiscal 2024 to 30 by Q4 Fiscal 2024[39] - The total Oxford retail locations increased from 322 in Q1 Fiscal 2024 to 345 by Q4 Fiscal 2024[39]

EXHIBIT 99.1 Fourth Quarter Fiscal 2025 Financial and Operational Highlights: (1) See GAAP to non-GAAP and EBITDA and Adjusted EBITDA reconciliation in schedules following this release. Management Comments "Stronger than expected results in the fourth quarter were driven by AI applications," commented Mr. Bob Daigle, Chief Executive Officer of Amtech. Advanced Packaging and assembly equipment we produce for AI infrastructure accounted for over 30% of our Thermal Processing Solutions (TPS) segment revenue in ...

Financial Performance - Sales for the second quarter of fiscal year 2026 were $70,096,000, a 46.8% increase from $47,764,000 in the prior year quarter[3] - Pre-tax earnings decreased by 12.2% to $3,453,000 compared to $3,931,000 in the prior year quarter[3] - Kewaunee Scientific reported net sales of $70,096,000 for the three months ended October 31, 2025, a 46.7% increase from $47,764,000 in the same period of 2024[20] - Gross profit for the three months ended October 31, 2025, was $19,720,000, representing a 41.5% increase compared to $13,952,000 in the prior year[20] - Operating profit decreased slightly to $4,107,000 for the three months ended October 31, 2025, down from $4,434,000 in the same period of 2024[20] - Net earnings attributable to Kewaunee Scientific Corporation for the three months ended October 31, 2025, were $2,445,000, a decrease of 18.7% from $3,008,000 in the prior year[20] Sales Breakdown - Domestic sales increased by 51.7% to $55,224,000 from $36,409,000 in the prior year quarter[4] - International sales rose by 31.0% to $14,872,000 from $11,355,000 in the prior year quarter[5] Assets and Liabilities - The company’s total assets as of October 31, 2025, were $189,075,000, down from $194,654,000 as of April 30, 2025[22] - Total liabilities decreased to $117,358,000 as of October 31, 2025, compared to $128,409,000 as of April 30, 2025[22] - Kewaunee Scientific's cash and cash equivalents were $12,594,000 as of October 31, 2025, down from $14,942,000[22] - Total cash on hand was $13,679,000, down from $17,164,000 on April 30, 2025[8] - Long-term debt decreased to $58,164,000 from $60,730,000 on April 30, 2025[9] - The debt-to-equity ratio improved to 0.88-to-1 from 0.99-to-1 on April 30, 2025[9] Acquisition and Strategy - The acquisition of Nu Aire, Inc. is part of the company's strategy to diversify and enhance its laboratory solutions offerings[10] - The company has integrated its newly acquired subsidiary, Nu Aire, which is expected to enhance its product offerings in laboratory equipment[16] - Kewaunee Scientific anticipates that the acquisition of Nu Aire will provide significant benefits, although it faces risks related to competitive conditions and supply chain disruptions[18] Inventory and Backlog - The company's order backlog was $192.9 million as of October 31, 2025, compared to $184.4 million a year earlier[3] - The company reported an increase in inventories to $35,499,000 as of October 31, 2025, compared to $32,849,000 as of April 30, 2025[22] - The company expects strong demand for its products and a robust backlog through the end of the fiscal year[10]