Financial Performance - Fourth quarter 2025 reported sales increased 8% to $1.130 billion, with local currency sales up 5%[3][4][8] - Adjusted EPS for the fourth quarter was $13.36, an increase of 8% from $12.41 in the prior year[4][8] - Full year 2025 reported sales rose 4% to $4.026 billion, with local currency sales increasing 3%[6][24] - Adjusted EPS for the full year was $42.73, reflecting a 4% increase from $41.11 in the previous year[7] - Management anticipates first quarter 2026 local currency sales to increase approximately 3% and adjusted EPS to be between $8.60 and $8.75, representing a growth rate of 5% to 7%[11] - For the full year 2026, local currency sales are expected to grow approximately 4%, with adjusted EPS forecasted between $46.05 and $46.70, indicating growth of 8% to 9%[12] Profitability - Adjusted operating profit for the fourth quarter was $363.0 million, up 3% from $351.9 million in the prior year[4][22] - Earnings before taxes for the fourth quarter amounted to $329.1 million, compared to $314.5 million in the previous year[3][22] - The company reported a non-cash discrete tax benefit of $0.95 per share for both the fourth quarter and full year 2025[3][6] Assets and Liabilities - Total assets increased to $3,712,646 thousand as of December 31, 2025, up from $3,239,999 thousand in 2024, representing a growth of 14.6%[27] - Long-term debt increased to $2,088,241 thousand as of December 31, 2025, compared to $1,831,265 thousand in 2024, reflecting a rise of 14.0%[27] - Total current liabilities rose to $1,198,116 thousand in 2025, up from $1,168,193 thousand in 2024, marking an increase of 2.6%[27] Cash Flow - Adjusted free cash flow for the twelve months ended December 31, 2025, was $877,535 thousand, compared to $900,554 thousand in 2024, indicating a decrease of 2.5%[30] - The company reported a net cash provided by operating activities of $955,772 thousand for the twelve months ended December 31, 2025, down from $968,346 thousand in 2024, a decrease of 1.3%[29] - The company experienced a decrease in cash and cash equivalents to $66,888 thousand at the end of 2025, down from $59,362 thousand in 2024[29] Restructuring and Growth Initiatives - The company’s restructuring charges for the three months ended December 31, 2025, amounted to $4.6 million, compared to $2.1 million in 2024, indicating an increase in restructuring costs[35] - Mettler-Toledo is focused on growth through its Spinnaker sales and marketing program and innovative product portfolio, capitalizing on automation and digitalization opportunities[14] Regional Sales Performance - U.S. dollar sales growth for the three months ended December 31, 2025, was 8%, with growth of 7% in the Americas, 12% in Europe, and 5% in Asia/RoW[32] - Adjusted diluted EPS for the three months ended December 31, 2025, was $13.36, an increase of 8% from $12.41 in 2024[34] Net Earnings - Net earnings for the twelve months ended December 31, 2025, were $869,193 thousand, slightly up from $863,140 thousand in 2024, reflecting a growth of 0.6%[29]

Financial Performance - The company reported a net loss of $1,683,664 for the nine months ended September 30, 2025, compared to a net income of $2,428,474 for the same period in 2024, indicating a significant shift in financial performance[9] - The company experienced a loss from operations of $324,288 for the nine months ended September 30, 2025, compared to a loss of $389,655 for the same period in 2024, showing a slight improvement of about 16.8%[9] - The net loss for the three months ended September 30, 2025, was $(393,970), compared to a net income of $825,358 for the same period in 2024[58] - For the three months ended September 30, 2025, the company had a net loss of $393,970, which included a loss of $112,722 from operating costs and a change in fair value of forward purchase agreement of $367,148[99] - For the nine months ended September 30, 2025, the company reported a net loss of $1,683,664, consisting of a loss of $324,288 from operating costs and a loss on issuance of FPA liability of $1,929,656[100] Assets and Liabilities - Total current assets decreased from $254,059,000 as of December 31, 2024, to $190,057,000 as of September 30, 2025, representing a decline of approximately 25.2%[7] - Cash and cash equivalents decreased from $103,774,000 at the beginning of the period to $17,731,000 at the end of September 30, 2025, a decline of approximately 83.0%[16] - Total liabilities increased from $1,053,115 as of December 31, 2024, to $2,608,228 as of September 30, 2025, marking a rise of approximately 147.5%[7] - The total shareholders' deficit increased from $799,056 as of December 31, 2024, to $2,418,171 as of September 30, 2025, indicating a deterioration of approximately 202.5%[7] - As of September 30, 2025, the Company reported cash and cash equivalents of $17,731 and a working capital deficit of $2,418,171[37] IPO and Fundraising - The Company completed its IPO on July 14, 2023, raising gross proceeds of $60 million from the sale of 6,000,000 Public Units at $10.00 per Unit[20] - A Private Placement of 330,000 units was also completed simultaneously, generating total proceeds of $3.3 million[21] - The underwriters exercised their over-allotment option, resulting in an additional sale of 900,000 Units for gross proceeds of $9 million[22] - The company raised $60,000,000 from its initial public offering (IPO) by selling 6,000,000 units at $10.00 per unit, with an over-allotment option fully exercised for an additional $9,000,000[65] - Following the IPO, the company placed $69,690,000 in a trust account, which may be used for its initial business combination[105] Business Combination and Related Costs - The Company extended the time to consummate its initial Business Combination to January 14, 2025, with a loan of $690,000 from sponsors[26] - A proposed business combination with Shenzhen Qianzhi BioTechnology Co. Ltd. was announced on January 18, 2024, involving a merger with NewCo[32] - The merger will result in the issuance of 7,246,377 Parent Ordinary Shares and up to 1,400,000 Earnout Shares to NewCo shareholders[34] - For the nine months ended September 30, 2025, the company incurred $512,073 in business combination-related costs, of which $482,144 were reimbursed by the target company, Qianzhi[78] - The company will pay EBC a service fee of $2,415,000 upon the consummation of its initial Business Combination, which is 3.5% of the gross proceeds of the IPO[77] Trust Account and Investments - The Trust Account held investments valued at $8,215,231 as of September 30, 2025, down from $75,794,241 as of December 31, 2024[45] - Interest earned on investments held in the trust account decreased significantly from $2,818,129 for the nine months ended September 30, 2024, to $271,452 for the same period in 2025, a drop of approximately 90.4%[9] - Interest and dividend income from the Trust Account for the three months ended September 30, 2025, was $85,725, and for the nine months, it was $271,452, both of which were reinvested[45] Shareholder Information - The weighted average common stock outstanding subject to possible redemption decreased from 6,900,000 shares in 2024 to 729,676 shares in 2025, reflecting a reduction of approximately 89.4%[9] - The weighted average shares outstanding for the three months ended September 30, 2025, was 729,676, compared to 2,266,500 for the same period in 2024[58] - The company has 2,266,500 ordinary shares issued and outstanding as of September 30, 2025, excluding 727,871 shares subject to possible redemption[83] Regulatory and Compliance - The Company is classified as an "emerging growth company," allowing it to take advantage of certain reporting exemptions[39] - The company received a Nasdaq listing qualifications hearing decision letter on October 30, 2025, notifying it of the determination to delist its securities due to failure to complete its business combination by the deadline[93] - The company plans to enhance its disclosure controls and procedures to address material weaknesses identified in internal control over financial reporting[122] - Management believes that the financial statements present fairly the financial position and results of operations for the periods presented[122] - No changes in internal control over financial reporting materially affected the Company during the most recent fiscal quarter[123] Miscellaneous - The company has recorded an interest expense of $122,174 for the nine months ended September 30, 2025, related to a $500,000 loan from a related party[70] - The fair value of the Founder Shares was estimated at approximately $209,442, or $6.98 per share, based on a probability of completion of the business combination of 65%[70] - The company incurred transaction costs of $3,318,898 related to its IPO, including $1,725,000 in cash underwriting fees[104] - The company has not generated any operating revenues to date and does not expect to do so until after completing its initial business combination[98]

Financial Performance - Net revenue for the three months ended January 2, 2026, was $1,035.4 million, a decrease of 3.5% compared to $1,068.5 million for the same period in 2024[10] - Gross profit for the same period was $427.2 million, down from $441.9 million, reflecting a gross margin of approximately 41.2%[10] - Operating income decreased to $103.8 million from $181.1 million, indicating a decline of 42.7% year-over-year[10] - Net income for the quarter was $79.2 million, a significant drop of 51.1% compared to $162.0 million in the prior year[10] - Basic earnings per share (EPS) was $0.53, down from $1.01, representing a decline of 47.5%[10] - Revenue from the United States was $805.7 million, down 4.8% from $846.7 million in the prior year[31] - Gross profit margin decreased to 41.3% for the three months ended January 2, 2026, down from 41.4% in the prior year[83] - Operating income fell to 10.0% of net revenue for the three months ended January 2, 2026, compared to 17.0% in the same period last year[83] - Net income margin decreased to 7.7% for the three months ended January 2, 2026, down from 15.2% for the same period in fiscal 2025[83] Cash and Liquidity - Cash and cash equivalents increased to $1,550.4 million from $1,161.3 million, showing a growth of 33.5%[15] - The company reported net cash provided by operating activities of $395.5 million, an increase from $377.2 million in the previous year[17] - Cash, cash equivalents, and marketable securities totaled $1,568.6 million as of January 2, 2026, an increase of $180.2 million from October 3, 2025[117] - The company expects cash, cash equivalents, and marketable securities, along with cash generated from operations, to be sufficient to fund short-term and long-term liquidity requirements[120] Assets and Liabilities - Total assets decreased slightly to $7,867.9 million from $7,917.0 million, a reduction of 0.6%[15] - Total liabilities decreased to $2,109.0 million from $2,159.9 million, reflecting a decline of 2.3%[15] - The Company’s total other current assets increased to $378.4 million as of January 2, 2026, compared to $350.0 million as of October 3, 2025[67] - The Company’s total other current liabilities rose to $457.6 million as of January 2, 2026, compared to $407.1 million as of October 3, 2025[67] Expenses - Research and development expenses increased to 19.6% of net revenue for the three months ended January 2, 2026, compared to 16.5% in the prior year[83] - Selling, general, and administrative expenses rose by 31.2% to $108.4 million, accounting for 10.5% of net revenue, compared to $82.6 million in the same period last year[103] - Restructuring, impairment, and other charges increased significantly by 612.5% to $11.4 million, representing 1.1% of net revenue, compared to $1.6 million in the prior year[106] - Share-based compensation expense totaled $57.7 million for the three months ended January 2, 2026, compared to $51.1 million for the same period in the previous year, representing an increase of approximately 13%[65] Taxation - The provision for income taxes for the three months ended January 2, 2026, was $30.5 million, with an effective tax rate of 27.8%[46] - The company recorded a provision for income taxes of $30.5 million for the three months ended January 2, 2026, reflecting a 7.4% increase from $28.4 million in the prior year[109] Stock and Dividends - The Company declared a cash dividend of $0.71 per share, payable on March 17, 2026, to stockholders of record as of February 24, 2026[63] - The Company has a stock repurchase program authorized for up to $2.0 billion, with approximately $1.2 billion remaining available as of January 2, 2026[60][61] - The company repurchased a total of 621,305 shares of common stock during the three months ended January 2, 2026, at an average price of $62.78 per share[137] - The company's net share repurchases are subject to a 1% excise tax under the Inflation Reduction Act, which reduces the amount available under the stock repurchase program[138] Mergers and Acquisitions - The Company has entered into a merger agreement with Qorvo, Inc., with a combined enterprise value of approximately $22.0 billion, expected to close early in calendar year 2027[68] - The Exchange Ratio in the Merger Agreement is set at 0.960 shares of Skyworks common stock and $32.50 in cash for each share of Qorvo common stock[86] - The company is involved in a merger agreement with Qorvo, Inc., and Comet Acquisition Corp., dated October 27, 2025[140] Internal Controls and Compliance - As of January 2, 2026, the company's disclosure controls and procedures were evaluated as effective at the reasonable assurance level by the CEO and CFO[132] - There were no changes to the internal control over financial reporting during the first quarter of fiscal 2026 that materially affected or are likely to materially affect the internal control over financial reporting[133] Market and Risk Factors - The company experienced a decrease in market share at a significant customer, partially offset by increased demand for Wi-Fi products[96] - The company has identified risk factors that could materially affect its business and financial condition, as discussed in the 2025 10-K report[136] - The company has not disclosed any new product or technology developments in the provided content[130] - There are no significant legal proceedings affecting the company as referenced in the financial statements[135]

Financial Performance - Coty Inc. reported financial results for the fiscal year ended June 30, 2025, with a focus on strategic planning and operational efficiency [162]. - The fiscal year 2026 is projected to continue the trend of operational transformation and strategic growth initiatives [171]. - In the first half of fiscal 2026, net revenues from fragrances decreased by a low single-digit percentage compared to the prior-year period, with a focus on leveraging innovations like the Boss Bottled Beyond launch to unlock value in key markets [179]. - Net revenues from color cosmetics declined by a mid single-digit percentage in the first half of fiscal 2026, prompting the implementation of a performance improvement plan to narrow the sell-out gap [180]. - Skin and body care net revenues also declined by a low single-digit percentage in the first half of fiscal 2026, influenced by competitive pricing actions in the Brazil market [182]. - In the Americas, net revenue declined by a mid single-digit percentage, primarily due to weak demand in the U.S. color cosmetics market, while EMEA and Asia Pacific also saw declines [183]. - The third quarter of fiscal 2026 is expected to see a decline in reported net revenue compared to the prior year, with gross margin pressures anticipated due to lower net sales and tariff impacts [184]. - For the three months ended December 31, 2025, Coty Inc. reported a net loss of $116.2 million, a significant decline from a net income of $30.6 million in the same period of 2024, representing a change of less than 100% [210]. - For the six months ended December 31, 2025, net revenues decreased by 3%, or $85.6 million, to $3,255.8 million from $3,341.4 million in the same period of 2024, primarily due to a 4% decrease in unit volume and a negative price and mix impact of 1% [229]. - Net loss attributable to Coty Inc. was $55.7 million for the six months ended December 31, 2025, compared to net income of $106.6 million for the same period in 2024, primarily due to a realized loss on the sale of Wella of $200.9 million [265]. Revenue and Segment Analysis - The overall increase in net revenues reflects sales growth in the Prestige segment, while Consumer Beauty faced declines primarily due to color cosmetics in the U.S. market [194][197]. - Prestige segment net revenues rose by 2%, or $17.5 million, to $1,133.6 million, while Consumer Beauty segment revenues decreased by 2%, or $8.8 million, to $545.0 million [196][198]. - Prestige segment net revenues decreased by 1%, or $27.1 million, to $2,203.1 million, while Consumer Beauty segment revenues fell by 5%, or $58.5 million, to $1,052.7 million [230]. - The operating income for the Consumer Beauty segment dropped to $10.6 million, a decline of 86% from $78.1 million in the prior year [243]. Cost and Expense Management - Coty aims to achieve cost control and gross margin growth as part of its strategic initiatives, with a focus on debt deleveraging [165]. - Cost of sales increased by 9%, or $52.3 million, to $608.0 million, resulting in a gross margin decrease of approximately 290 basis points, with cost of sales as a percentage of net revenues rising to 36.2% [199]. - Selling, general and administrative expenses increased by 6%, or $45.2 million, to $842.5 million, with expenses as a percentage of net revenues rising to 50.2% [202]. - The company is re-accelerating cost reduction efforts to achieve savings of approximately $80.0 million in fiscal 2026 [184]. - The Fixed Cost Reduction Plan is expected to incur cash costs of approximately $80.0 million, split evenly between fiscal 2026 and fiscal 2027, with $15.0 million incurred to date [273]. Strategic Initiatives and Future Outlook - The company is undergoing a strategic review of its consumer beauty business, including its mass color cosmetics and local Brazilian brands [164]. - Coty is evaluating potential strategic transactions, including acquisitions and divestitures, to optimize its portfolio and enhance market position [164]. - The ongoing strategic transformation agenda is under review by the Interim CEO to enhance performance and competitive positioning, with no material changes finalized yet [174]. - Coty is focused on enhancing its e-commerce and digital initiatives to adapt to changing consumer preferences and market trends [165]. - Future launches will be developed with dual production capabilities to mitigate supply chain disruptions and cost increases [177]. Supply Chain and Operational Challenges - Coty is facing risks related to global supply chain challenges and geopolitical uncertainties, which may impact its operations and financial performance [166]. - The company is optimizing its supply chain to enhance resilience and agility in response to changing tariff environments, including transitioning mass fragrance production to U.S. manufacturing sites [176]. - The company estimates an impact of approximately $33.0 million in costs related to tariff increases through the first quarter of fiscal 2027, with about $28.0 million expected in fiscal 2026 [178]. Tax and Financial Adjustments - The effective income tax rate for the three months ended December 31, 2025, was 31.1%, down from 45.9% in the prior year, attributed to the release of uncertain tax positions [220]. - The effective income tax rate decreased to 31.4% for the six months ended December 31, 2025, from 35.9% in 2024, primarily due to the release of uncertain tax positions [259]. Cash Flow and Financing Activities - Net cash provided by operating activities increased to $624.9 million for the six months ended December 31, 2025, up from $531.9 million in 2024, driven by changes in working capital [285]. - Net cash provided by investing activities was $658.7 million, significantly improved from $(108.2) million in 2024, primarily due to proceeds from the sale of the remaining equity investment in Wella [286]. - Net cash used in financing activities increased to $(1,106.5) million from $(461.3) million in 2024, largely due to debt-related activities and higher payments associated with hedge valuation adjustments [287].

Financial Performance - Premium income for Q4 2025 was $2,692.1 million, a slight increase from $2,631.1 million in Q4 2024, while total revenue reached $3,244.1 million compared to $3,236.6 million in the previous year[5]. - Net income for the year ended December 31, 2025, was $738.5 million, a significant decrease from $1,779.1 million in 2024, resulting in a net income per share of $4.28 compared to $9.49[5]. - Adjusted operating revenue for the year was $13,173.1 million, up from $12,921.9 million in 2024, indicating a growth of approximately 1.95%[5]. - Total sales for Unum Group increased by 2.3% to $639.9 million in Q4 2025 compared to $625.4 million in Q4 2024[12]. - Total operating revenue for Q4 2025 was $3,254.2 million, a slight increase of 0.2% compared to Q4 2024, and for the year it was $13,182.1 million, up 2.0%[28]. - The net income for Q4 2025 was $174.1 million, compared to $39.7 million in Q4 2024, with net income per common share increasing to $1.04 from $0.23 year-over-year[33]. - The total after-tax adjusted operating income for the year ended December 31, 2025, was $1,406.0 million, compared to $1,588.2 million in 2024, representing a decline of 11.4%[78]. Equity and Assets - Total stockholders' equity increased to $11,119.1 million as of December 31, 2025, compared to $10,961.1 million in 2024, reflecting a growth of 1.44%[6]. - The company’s total assets reached $63,519.4 million as of December 31, 2025, compared to $61,959.3 million in 2024, showing an increase of approximately 2.52%[5]. - Allocated stockholders' equity was reported at $12,471.1 million, compared to $10,961.1 million, reflecting a growth of approximately 14%[22][25]. - Total assets increased to $63,519.4 million, up from $61,959.3 million year-over-year, reflecting a growth of approximately 2.5%[22][25]. - Total liabilities rose to $52,400.3 million, compared to $50,998.2 million, indicating an increase of about 2.8%[22][25]. - The total adjusted capital for the company was $16,317.6 million in 2025, slightly down from $16,610.8 million in 2024[82]. Investment Performance - The company reported a net investment loss of $106.6 million for the year, compared to a loss of $34.6 million in 2024, highlighting challenges in investment performance[5]. - Unum US net investment income decreased by 5.0% to $148.3 million for Q4 2025, and by 4.4% to $604.2 million for the year[28]. - Unum International's net investment income increased by 13.0% to $145.6 million for the year, reflecting strong performance in the segment[28]. - The company reported a net unrealized loss on securities and derivatives of $2,281.9 million, an increase from $3,025.9 million, indicating a decrease in losses[22][25]. - Net investment income for the year ended December 31, 2025, was $81.6 million, down from $88.3 million in 2024[39]. - Net investment losses totaled $83.5 million for 2025, impacting the overall financial results[87]. Segment Performance - Group Long-term Disability sales decreased by 17.7% to $127.2 million in Q4 2025 from $154.5 million in Q4 2024[12]. - Group Short-term Disability sales increased by 45.3% to $177.9 million in Q4 2025 compared to $122.4 million in Q4 2024[12]. - Colonial Life segment total sales increased by 10.0% to $203.9 million in Q4 2025 compared to $185.4 million in Q4 2024[15]. - Life insurance sales in Colonial Life segment rose by 22.1% to $54.7 million in Q4 2025 from $44.8 million in Q4 2024[15]. - The Closed Block segment reported a 15.9% decline in total operating revenue for Q4 2025, totaling $445.6 million, and a 9.1% decline for the year to $1,892.0 million[28]. - The Voluntary Benefits segment achieved premium income of $227.2 million for Q4 2025, a 6.5% increase from $214.1 million in Q4 2024[41]. Operational Efficiency - The adjusted operating return on equity for Unum US was 22.6% for the year ended December 31, 2025, down from 25.2% in 2024[70]. - Adjusted operating income for Unum US was $289.7 million in Q4 2025, down from $333.2 million in Q4 2024, with an adjusted operating income ratio of 16.6% compared to 19.4% in the previous year[35]. - The benefit ratio for Unum US was 61.1% in Q4 2025, slightly higher than 59.5% in Q4 2024, indicating an increase in policy benefits relative to premium income[35]. - The benefit ratio for Group Life was 64.8% for Q4 2025, a slight improvement from 66.7% in Q4 2024[39]. - The Adjusted Operating Income Ratio for the year ended December 31, 2025, was 15.5%, down from 17.5% in 2024[41]. Future Outlook - The company plans to continue focusing on market expansion and new product development to drive future growth[27]. - The company plans to exclude the results of the Closed Block segment from future after-tax adjusted operating income calculations starting in 2026[86]. - A reinsurance agreement with Fortitude Re, effective January 2025, reinsures approximately 21% of total Closed Block long-term care future policy benefits and 15% of Unum US individual disability future policy benefits[59].

Financial Performance - Net sales for the three months ended January 3, 2026, increased by $93.8 million, or 9.6%, compared to the same period in 2024, reaching $1,069.9 million[83]. - Operating income for the three months ended January 3, 2026, increased by $7.6 million, or 16.2%, to $54.5 million, with an operating margin of 5.1%[94]. - Net income for the three months ended January 3, 2026, rose by $3.9 million, or 10.5%, to $41.2 million, primarily due to increased operating income[99]. - Diluted earnings per share increased to $1.51 for the three months ended January 3, 2026, up from $1.34 in the prior year[100]. Segment Performance - In the AMER segment, net sales increased by $70.9 million, or 25.9%, driven by production ramps of new products and increased customer demand[86]. - In the APAC segment, net sales increased by $4.6 million, or 0.8%, with production ramps partially offset by customer disengagements[87]. - In the EMEA segment, net sales increased by $17.2 million, or 17.0%, attributed to production ramps of new products[88]. Profitability and Margins - Gross profit for the three months ended January 3, 2026, increased by $5.4 million, or 5.4%, with a gross margin of 9.9%, down 40 basis points from the previous year[93]. - Cost of sales increased by $88.3 million, or 10.1%, primarily due to higher material and component costs[91]. Cash Flow and Liquidity - Cash and cash equivalents as of January 3, 2026, were $249.4 million, down from $306.8 million as of September 27, 2025[106]. - Cash flows used in operating activities for the three months ended January 3, 2026, were $(15.4) million, compared to $53.6 million for the same period in 2024[108]. - Free Cash Flow (FCF) for the three months ended January 3, 2026, was $(50.6) million, a decrease of $77.7 million compared to $27.1 million for the same period in 2024[114]. - Cash flows used in investing activities increased to $35.1 million for the three months ended January 3, 2026, from $26.4 million in the same period in 2024[117]. - Cash flows used in financing activities were $8.0 million for the three months ended January 3, 2026, compared to $52.8 million for the same period in 2024[119]. Capital Expenditures and Investments - Capital expenditures for fiscal 2026 are estimated to be approximately $100.0 million to $120.0 million to support new program ramps and replace older equipment[118]. - As of January 3, 2026, 91% of cash and cash equivalents were held outside the U.S. by foreign subsidiaries[107]. - The company has a share repurchase program with $62.6 million of authority remaining under the 2026 Program as of January 3, 2026[121]. Currency and Interest Rate Risks - As of January 3, 2026, 10% of net sales and 17% of total costs were denominated in currencies other than the U.S. dollar[132]. - A 10.0% change in the value of the U.S. dollar relative to other transactional currencies would not have a material effect on the company's financial position, results of operations, or cash flows[132]. - The only material interest rate risk as of January 3, 2026, was associated with the Credit Facility, which has various interest rate options based on different benchmarks[134]. - The borrowing rate under the Credit Facility was SOFR plus 1.00% as of January 3, 2026[135]. - Borrowings under the 2018 NPA are based on a fixed interest rate, mitigating much of the company's interest rate risk[135]. - A 10.0% change in interest rates would not have a material effect on the company's financial position, results of operations, or cash flows[135].

Financial Performance - Net loss for the six months ended December 31, 2025, was $407,985, compared to a net loss of $415,996 for the same period in 2024, showing a slight improvement of 2.4%[13] - The net loss from continuing operations attributable to common shareholders for the three months ended December 31, 2025, was $241.8 million, compared to a loss of $242.7 million in the same period of 2024[26] - The net loss for the three months ended December 31, 2025, was $242,166,000, slightly improved from a net loss of $243,420,000 in the same quarter of 2024[72] Revenue - For the three months ended December 31, 2025, total revenues increased to $198.9 million, up 11% from $179.1 million in the same period of 2024[23] - U.S. assisted tax preparation revenues rose to $55.9 million, a 15.5% increase compared to $48.4 million in Q2 FY2025[23] - International revenues for the three months ended December 31, 2025, were $34.7 million, an increase from $31.8 million in the same period of 2024[23] Assets and Liabilities - Total assets decreased to $2,930,010, down from $3,263,898 as of June 30, 2025, representing a decline of approximately 10.2%[11] - Total liabilities increased to $3,753,088, up from $3,175,002, indicating a rise of about 18.1%[11] - Total stockholders' equity showed a deficiency of $823,078 as of December 31, 2025, compared to a positive equity of $88,896 as of June 30, 2025[11] Cash Flow - Cash and cash equivalents decreased to $349,194 from $983,277, a reduction of approximately 64.5%[11] - Net cash used in operating activities was $970,788 for the six months ended December 31, 2025, compared to $895,638 for the same period in 2024, reflecting an increase of approximately 8.4%[13] - The company repurchased and retired common shares amounting to $404,118 during the reporting period[14] Stock and Dividends - Cash dividends declared were $0.42 per share, totaling $53,215 for the period[14] - The company declared cash dividends of $0.375 per share, totaling $50.2 million for the six months ended December 31, 2025[23] - The company repurchased common stock totaling $412,645,000 during the six months ended December 31, 2025[13] Credit and Receivables - The company reported a provision for credit losses of $21,144, slightly up from $20,727 in the previous year[13] - Loans to franchisees with a principal balance more than 90 days past due were $3.0 million as of December 31, 2025[30] - The net balance of Emerald Advance® receivables was $311.4 million, with $36.5 million classified as non-accrual[34] Goodwill and Intangible Assets - Goodwill increased to $953.9 million as of December 31, 2025, following acquisitions totaling $15.7 million during the period[36] - Amortization of intangible assets for the six months ended December 31, 2025, was $22.4 million, compared to $25.0 million for the same period in 2024[38] Debt and Financing - Total long-term debt rose to $2.4 billion as of December 31, 2025, compared to $1.5 billion as of June 30, 2025[40] - The company issued $350 million of 5.375% Senior Notes due September 15, 2032, to refinance existing debt and for general corporate purposes[40] - The outstanding balance under the 2025 CLOC was $945.0 million as of December 31, 2025, with no limitations imposed by the debt-to-EBITDA covenant[45] Tax and Liabilities - The effective tax rate for continuing operations was 24.0% for the six months ended December 31, 2025, consistent with the same period in 2024[47] - The estimated liability related to the 100% accuracy guarantee was $10.9 million as of December 31, 2025, down from $11.4 million as of June 30, 2025[49] - Estimated liabilities related to acquisitions amounted to $36.9 million as of December 31, 2025[50] Operational Metrics - The Chief Operating Decision Maker uses consolidated revenues, operating expenses, net income, and EBITDA as key financial metrics for evaluating performance and growth opportunities[69] - Total operating expenses for the six months ended December 31, 2025, were $908,326,000, compared to $894,502,000 for the same period in 2024, marking a 1.5% increase[72] - The total compensation and benefits expense was $207,171,000 for the three months ended December 31, 2025, compared to $198,698,000 in the same period of 2024[72]

Financial Performance - Q2 2026 reported net revenue was $1,678.6 million, a 1% increase year-over-year, but a 3% decline on a like-for-like (LFL) basis[6] - Prestige net revenue was $1,133.6 million, accounting for 68% of total sales, with a 2% increase reported but a 2% decline on an LFL basis[6] - Consumer Beauty net revenue decreased to $545.0 million, representing 32% of total sales, with a 2% decline reported and a 6% decline on an LFL basis[6] - Reported operating income was $148.2 million, down 45% year-over-year, resulting in an operating margin of 8.8%[6] - The company reported a net loss of $126.9 million for Q2 2026, compared to a net income of $20.4 million in the prior year, leading to a net loss margin of 7.6%[6] - Adjusted EBITDA for Q2 2026 was $330.2 million, a 15% decrease year-over-year, with an adjusted EBITDA margin of 19.7%[6] - Fiscal year-to-date reported loss per share of $0.07, deteriorating from reported EPS of $0.11 in the prior year[19] - 2Q26 adjusted operating income of $274.3 million, down 18% from $333.7 million in the prior year, with an adjusted operating margin of 16.3%[24] - 2Q26 adjusted EBITDA of $330.2 million decreased 15% from $390.7 million in the prior year, with an adjusted EBITDA margin of 19.7%[24] - 2Q26 adjusted net income of $119.7 million increased from $98.8 million in the prior year, with an adjusted net income margin of 7.1%[24] Debt and Financial Position - Total debt at quarter-end was $3,038.1 million, with financial net debt at $2,601.4 million, resulting in a financial leverage ratio of 2.7x[7] - Coty sold its remaining 25.8% stake in Wella for $750 million, using most proceeds to pay down long-term debt[12] - The company reported a diluted EPS of $(0.14) for the three months ended December 31, 2025, compared to $0.02 in the same period of 2024[59] - Coty Inc.'s total debt as of December 31, 2025, was $3,038.1 million, with financial net debt amounting to $2,601.4 million after accounting for cash and cash equivalents of $436.7 million[82] - Long-term debt decreased to $2,986.8 million as of December 31, 2025, from $3,955.5 million as of June 30, 2025[91] Revenue by Region - Americas net revenue of $624.5 million in 2Q26, representing 37% of total sales, decreased 2% on a reported basis[29] - EMEA net revenue of $864.2 million in 2Q26 increased 3% on a reported basis, including a 7% FX benefit[31] - Asia Pacific net revenue of $189.9 million in 2Q26 decreased 1% on a reported basis, with a 1% FX benefit[32] - The Americas region reported net revenues of $624.5 million for the three months ended December 31, 2025, a decrease of 2% from $638.6 million in the same period of 2024[57] - EMEA region net revenues increased by 3% to $864.2 million for the three months ended December 31, 2025, compared to $839.8 million in the same period of 2024[57] Strategic Initiatives - The company is initiating the "Coty. Curated." strategic framework to improve performance and focus on core businesses[4] - The company is focusing on strategic planning and operational efficiency to enhance revenue growth and manage inflationary pressures[35] - Future operations will include a strategic review of the consumer beauty business, particularly in mass color cosmetics and local Brazilian brands[35] - The company anticipates ongoing cost efficiency initiatives and restructuring programs to improve profitability[36] - The company plans to implement new product launches and marketing strategies to respond to changing consumer preferences[36] - Adjusted Performance Measures will be used to evaluate performance and guide strategic decisions, including budgeting and senior management compensation[42] Operational Challenges - The company is addressing supply chain challenges and disruptions to ensure effective production and inventory management[37] - There is a focus on sustainability initiatives and compliance with evolving regulatory measures impacting the beauty industry[37] - The company is assessing the impact of geopolitical risks, including the war in Ukraine and conflicts in the Middle East, on its business operations[37] Cash Flow and Liquidity - 2Q26 cash from operations totaled $559.7 million, compared to $464.5 million during the same period in the prior year[24] - Net cash provided by operating activities for the six months ended December 31, 2025, was $624.9 million, an increase from $531.9 million in 2024[81] - Free cash flow for the three months ended December 31, 2025, was $513.1 million, compared to $419.0 million in the same period of 2024[81] - Future cash flows and liquidity management will be prioritized, including potential refinancing and debt deleveraging activities[36] Adjusted Performance Metrics - The company has excluded various costs from its adjusted performance measures, including restructuring costs and acquisition-related expenses, to provide a clearer view of its core operating performance[46] - The adjusted diluted EPS for the three months ended December 31, 2025, was $0.14, up from $0.11 in the same period of 2024[78] - Adjusted EBITDA for the twelve months ended December 31, 2025, was $957.2 million, reflecting the company's operational performance over the trailing twelve months[83] - The company reported a significant increase in adjustments to reported operating loss, totaling $662.1 million for the twelve months ended December 31, 2025[83] - Coty Inc. had an adjusted operating income of $730.4 million for the twelve months ended December 31, 2025, indicating strong operational efficiency[83]

Financial Performance - Net sales decreased by $18.8 million, or 5.2%, to $343.8 million for the three months ended December 27, 2025, primarily due to declines in the Food Service segment [134]. - Gross profit increased by $2.1 million, or 2.2%, to $96.0 million, with gross profit as a percentage of sales rising from 25.9% to 27.9% [135]. - Operating expenses increased by $7.7 million, or 8.8%, to $95.4 million, with a significant portion attributed to $6.1 million in plant closure expenses [137]. - Net earnings decreased by $4.3 million, or 82.8%, to $0.9 million for the three months ended December 27, 2025 [144]. - Investment income decreased by $0.3 million, or 31.3%, to $0.7 million due to lower interest rates on foreign cash balances [142]. Sales Performance - Net sales for the three months ended December 27, 2025, decreased by $18.8 million, or 5.2%, to $343.8 million compared to $362.6 million for the same period in 2024 [147]. - Food Service sales decreased by $19.7 million, or 8.3%, primarily due to a $18.2 million decline in bakery product sales, attributed to the Project Apollo initiative [148]. - Retail Supermarket sales increased by $1.2 million, or 2.6%, to $45.9 million, driven by a 35% increase in handheld sales [151]. - Frozen Beverages segment sales decreased by $0.3 million, or 0.3%, with operating income declining by $0.6 million, or 13.7%, to $4.0 million due to lower beverage sales volumes [153][154]. Operational Initiatives - The company expects Project Apollo to generate at least $20 million of run-rate operating income by the end of fiscal 2026 [127]. - The company has opened three regional distribution centers, projected to drive cost reductions in warehousing and distribution [130]. - Operating income in the Food Service segment increased by $1.3 million, or 14.6%, to $10.1 million, reflecting manufacturing efficiencies despite volume declines [150]. Cash Flow and Financial Position - Cash flows from operating activities for the three months ended December 27, 2025, increased to $35.9 million from $35.2 million in the prior year [156]. - As of December 27, 2025, the company had $66.8 million in cash and cash equivalents, with no outstanding balance under the Amended Credit Agreement [159][164]. - The company anticipates that future operating cash flow, along with its borrowing capacity, will be sufficient to meet cash requirements and fund growth [155]. Shareholder Actions - The company repurchased 458,467 shares of common stock at an average price of $91.61 per share during the quarter [162]. - The company is in compliance with all financial covenants of the Credit Agreement as of December 27, 2025 [163]. Taxation - The effective tax rate remained consistent at 27% for both the three months ended December 27, 2025, and December 28, 2024 [143]. Marketing Expenses - Selling and marketing expenses increased from 7.9% to 9.2% of net sales, driven by higher commission costs and promotional activities [138]. Plant Closure Costs - Plant closure costs recorded were approximately $24 million in Q4 fiscal 2025 and $6.1 million in Q1 fiscal 2026 [128].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (State or other jurisdiction of incorporation or organization) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to x Commission file number 000-19291 CORVEL CORPORATION (Exact Name of Registrant as Specif ...