Loan Originations - Multi-Family loan originations for Q4 2025 reached $131,805, while total originations for the year-to-date (YTD) were $131,805[2] - Commercial & Industrial loan originations for Q4 2025 were $502,134, with YTD originations totaling $1,667,064[2] - The weighted average rate on originations decreased to 5.99% in Q4 2025 from 6.87% in Q3 2025[2] Loan Portfolio - Net Loans as of December 31, 2025, amounted to $20,277,164, a slight increase from $20,088,618 as of September 30, 2025[4] - Single-Family Residential loans accounted for 38.5% of the total loan portfolio as of June 30, 2025, decreasing to 37.2% by December 31, 2025[4] - Total loans receivable reached $21,367,832 as of June 30, 2025, with a slight decline to $21,037,080 by December 31, 2025[4] Loan Performance - Non-performing assets increased to $203,396 as of December 25, 2025, up from $143,022 as of September 25, 2025[6] - Non-accrual loans as a percentage of total net loans rose to 0.96% as of December 25, 2025, compared to 0.64% as of September 25, 2025[6] - The delinquency rate for total loans was 0.83% as of December 31, 2025, with $214,390 in delinquent loans[17] Financial Metrics - Efficiency ratio improved to 55.25% for the quarter ending December 25, 2025, down from 58.92% for the previous quarter[8] - Tangible common shareholders' book value per share increased to $29.91 as of December 25, 2025, from $29.38 as of September 25, 2025[8] - Total net charge-offs for the quarter ending December 25, 2025, were $3,681, representing a charge-off rate of 0.07%[6] Deposits - Total deposits as of December 31, 2025, amounted to $21,416,970,000, with a slight decrease from $21,437,636,000 as of September 30, 2025[10] - Non-interest checking deposits increased to $2,692,680,000, representing 12.6% of total deposits, up from 12.0% in September 2025[10] - Time deposits decreased to $8,550,996,000, accounting for 39.8% of total deposits, down from 42.6% in September 2025[10] Interest Income and Rates - The net interest income (NII) change after a 100 bps shock is projected to decrease by 0.2% as of December 31, 2025[13] - Net interest income for the quarter ended December 31, 2025, was $171,110, reflecting a net interest margin of 2.70%[15] - The average interest rate on mortgage-backed securities increased to 4.23% by December 31, 2025[15] Company Operations - The company repurchased 1,950,013 shares at an average price of $29.75 during the year[8] - The number of employees remained stable at approximately 1,980 as of December 25, 2025[8] - The company plans to continue expanding its market presence and developing new products in the upcoming quarters[15] Asset Management - The company reported a total asset balance of $25,689,689,000, with loans comprising 48% of total assets[14] - Total assets as of December 31, 2025, were $26,852,389, with a slight increase from $26,540,782 in the previous quarter[15] - The company maintained a cash balance of $734,915,000, representing 100% of its cash assets[14]

Financial Results and Projections - Ondas Inc. announced preliminary financial results for 2025 and revenue targets for 2026 during a virtual Investor Day on January 16, 2026[5]. - The financial information provided is unaudited and preliminary, lacking comprehensive details necessary for understanding the company's financial condition as of December 31, 2025[6]. Regulatory and Reporting Information - The company issued a press release as part of its current report, which is not considered "filed" under the Securities Exchange Act of 1934[7]. - Forward-looking statements made in the report are subject to risks and uncertainties that could cause actual results to differ materially from those predicted[8]. - The company has no obligation to publicly update or revise any forward-looking statements unless required by law[8].

Dividends and Shareholder Returns - For the fiscal year ended September 30, 2023, the company did not declare any dividends to shareholders[40]. - The company intends to retain all available funds and future earnings for business operations and expansion, with no dividends anticipated in the foreseeable future[39]. - The company has not paid dividends or made distributions to U.S. investors as of the date of the annual report[40]. - The company does not expect to pay dividends in the foreseeable future, which may affect shareholder returns[59]. - The company does not expect to pay dividends in the foreseeable future, relying instead on price appreciation for returns on investment[195]. - The company did not declare any dividends for the fiscal years ended September 30, 2023, 2024, and 2025[178]. Financial Performance and Projections - Revenues for the fiscal year ended September 30, 2023, were HK$163.69 million, with a projected increase to HK$182.16 million in 2024 and HK$192.39 million in 2025, representing a growth of 11.5% from 2023 to 2024 and 5.5% from 2024 to 2025[48]. - Gross profit decreased from HK$48.04 million in 2023 to HK$30.74 million in 2025, indicating a decline of 36.8% over the two-year period[48]. - Net income for 2023 was HK$9.80 million, which is expected to turn into a net loss of HK$18.48 million by 2025, reflecting a significant downturn in profitability[48]. - The company reported a net cash used in operating activities of HK$13.54 million in 2023, with a recovery to HK$14.10 million in 2024, followed by a further decline to HK$15.46 million in 2025[49]. - For the fiscal years ended September 30, 2023, 2024, and 2025, the company recorded revenues of HK$163.7 million, HK$182.2 million, and HK$192.4 million (US$24.7 million) respectively[176]. - The net income for the fiscal years ended September 30, 2023, 2024, and 2025 was HK$9.8 million, HK$10.7 million, and a net loss of HK$18.5 million (US$2.4 million) respectively[176]. Cash Management and Liquidity - The company has implemented an internal cash management policy to ensure financial control and liquidity management[42]. - Cash and cash equivalents increased from HK$16.40 million in 2023 to HK$52.34 million in 2024, before decreasing to HK$35.24 million in 2025, showing volatility in liquidity[49]. - Total assets rose from HK$114.44 million in 2023 to HK$157.08 million in 2024, but are projected to decline to HK$125.95 million in 2025, indicating potential challenges in asset management[48]. - Total liabilities increased slightly from HK$58.02 million in 2023 to HK$59.36 million in 2024, but are expected to decrease to HK$39.80 million in 2025, suggesting improved debt management[48]. - As of September 30, 2023, 2024, and 2025, the company had cash and restricted cash of HK$16.4 million, HK$52.3 million, and HK$35.2 million (US$4.5 million) held in financial institutions[168]. - The total unprotected cash and restricted cash held in banks amounted to HK$14.3 million, HK$50.0 million, and HK$30.4 million (US$3.9 million) as of September 30, 2023, 2024, and 2025 respectively[168]. Regulatory Environment and Compliance - The company is subject to the Holding Foreign Companies Accountable Act, which may impact trading of its Class A ordinary shares if audit reports are not inspected by the PCAOB for two consecutive years[44]. - The company’s auditor, Marcum Asia CPAs LLP, is not subject to the PCAOB's previous restrictions and is expected to continue regular inspections[45]. - The company is subject to new regulatory requirements from the PRC government regarding overseas listings, which may affect its operations and share value[93]. - The company is subject to data protection laws in Hong Kong, including the Personal Data (Privacy) Ordinance, which mandates lawful collection and processing of personal data[74]. - The recent amendments to the Personal Data (Privacy) Ordinance criminalize doxing and expand the enforcement powers of the Privacy Commissioner for Personal Data[76]. - The company is required to include a report on its internal control over financial reporting in its annual report for the fiscal year ended September 30, 2024, as mandated by the Sarbanes-Oxley Act[224]. Operational Risks and Challenges - The company has significant reliance on recurring customers, and any loss of business from these customers could adversely affect financial performance[56]. - The company is subject to various risks related to conducting operations in Hong Kong, including political and economic instability, which could impact profitability[57]. - The company relies entirely on the earnings and cash flow from its Hong Kong subsidiaries, which may face restrictions on paying dividends or transferring funds due to potential PRC government interventions[78]. - The company may face significant liabilities due to work safety risks and occurrences of accidents during its operations[143]. - The company may experience labor shortages or increases in labor costs, which could harm business operations and growth[121]. - The company may incur significant costs and harm its reputation due to claims arising from personal injuries or property damage during service provision[144]. Corporate Governance and Structure - The company’s corporate structure does not include a Variable Interest Entity (VIE) and does not intend to establish one[37]. - The company’s directors and officers collectively own 98.9% of the total voting power of the outstanding ordinary shares, which may significantly influence corporate decisions[192]. - The dual-class share structure allows Class B shares to have 50 votes per share compared to 1 vote per Class A share, concentrating control in the hands of a few[198]. - The company is incorporated under Cayman Islands law, which may limit shareholders' ability to protect their interests[209]. - Shareholders have no general rights under Cayman Islands law to inspect corporate records or requisition general meetings[211]. - The company's status as a "controlled company" under Nasdaq rules may exempt it from certain corporate governance requirements, potentially affecting shareholder protections[190]. Market and Competitive Landscape - The company faces significant competition in the security-related engineering services industry, which may lead to downward pricing pressures and reduced profit margins[182]. - The trading price of the company's Class A ordinary shares may be volatile, influenced by regulatory developments, operational results, and market conditions[186]. - Companies with public floats comparable to this company have experienced extreme volatility, which may affect the assessment of the Class A ordinary shares' value[201]. - If analysts downgrade the Class A ordinary shares or cease coverage, the market price and trading volume could decline[202]. Customer and Revenue Dependence - The company relies on contracts from recurring customers, and any decrease or loss of business from these customers may adversely affect its financial condition[99]. - For the fiscal years ended September 30, 2023, 2024, and 2025, the company had 351, 352, and 346 recurring customers, representing approximately 79.8%, 81.5%, and 80.7% of the total number of customers, respectively[99]. - Approximately 81.1%, 61.8%, and 84.2% of revenues from security-related engineering services were contributed by recurring customers for the fiscal years ended September 30, 2023, 2024, and 2025[99]. Internal Control and Reporting - The company identified material weaknesses in its internal control over financial reporting, including a lack of accounting staff knowledgeable in U.S. GAAP and SEC requirements[221]. - The company may incur increased costs to comply with existing and new regulations, which could adversely affect its business operations and financial condition[91]. - The company must maintain a minimum shareholders' equity of US$2,500,000 and a minimum of 300 public holders to comply with Nasdaq listing requirements[228]. - If the company fails to meet Nasdaq's continued listing requirements, it risks delisting, which could adversely affect trading and investor confidence[229].

Revenue Growth - Total revenue for 2025 reached $13,944 million, an increase of 7.3% compared to 2024[4] - Total fee revenue for 2025 was $10,980 million, up 8.1% from $10,156 million in 2024[6] - Total revenue for the company was $3,667 million in Q4 2025, reflecting a 7.5% increase year-over-year and a 3.4% increase from Q3 2025[33] - Year-to-date total revenue for 2025 was $13,944 million, representing a 7.3% growth compared to the previous year[43] - Total revenue for 2025 is projected to be $13,944 million, an increase of 7.3% compared to 2024's revenue of $13,000 million[51] Net Income - Net income for 2025 was $2,945 million, reflecting a 9.6% increase from $2,687 million in 2024[6] - Net income available to common shareholders for Q4 2025 was $688 million, a decrease of 5.5% compared to Q4 2024, and a decrease of 14.2% compared to Q3 2025[8] - Year-to-date net income for 2025 was $2,945 million, showing a 9.6% increase from 2024[45] - Net income for Q4 2025 was $747 million, a decrease of 4.6% compared to Q4 2024[45] Earnings Per Share - The diluted earnings per common share for 2025 was $9.40, an increase from $8.21 in 2024[4] - Basic earnings per share for Q4 2025 were $2.46, down 1.6% from Q4 2024 and down 13.1% from Q3 2025[8] - Diluted earnings per share (GAAP) for Q4 2025 was $2.42, a decrease of 1.6% compared to Q4 2024, and year-to-date earnings per share increased by 14.5% to $9.40[47] - Diluted earnings per share excluding notable items for Q4 2025 was $2.97, reflecting a 14.2% increase from Q4 2024, and year-to-date earnings per share excluding notable items rose by 18.8% to $10.30[47] Assets and Management - Assets under custody and/or administration grew to $53.80 trillion in 2025, up from $46.56 trillion in 2024[4] - Assets under management increased to $5.67 trillion in 2025, compared to $4.72 trillion in 2024[4] - Total assets increased to $342,448 million in Q4 2025, reflecting a 4.7% increase from Q4 2024[8] - Total assets under custody rose to $38.352 billion in Q4 2025, representing a 13.5% increase from Q4 2024[28] - Total Assets Under Management (AUM) reached $5,665 billion in Q4 2025, reflecting a 20.1% increase year-over-year and a 4.0% increase quarter-over-quarter[30] Expenses - Total expenses for 2025 were $10,154 million, an increase of 6.5% from $9,530 million in 2024[6] - Total expenses increased to $2,741 million in Q4 2025, a 12.3% rise year-over-year and a 12.6% increase quarter-over-quarter[33] - Total expenses for Q4 2025 amounted to $2,535 million, up 6.42% from Q4 2024[45] - Total expenses for the year are projected to be around $9,530 million, a 5.9% increase compared to the previous year[53] Capital and Equity - The common equity tier 1 ratio improved to 11.7% in Q4 2025, up 0.8 percentage points from Q4 2024[8] - Common equity tier 1 capital reached $14,791 million in Q3 2025, up from $14,362 million in Q2 2025[36] - Total capital increased to $20,608 million in Q3 2025, up from $19,799 million in Q2 2025[36] - Shareholders' equity rose by 9.9% to $24,433 million, reflecting improved profitability and retained earnings[11] Interest Income - Net interest income for 2025 was $2,960 million, a slight increase of 1.3% from $2,923 million in 2024[6] - Net interest income rose to $800 million in Q4 2025, a 7.7% increase compared to Q4 2024 and a 12.5% increase from Q3 2025[33] - Net interest margin for 4Q25 was 1.10%, compared to 1.07% in 4Q24, reflecting a positive trend in interest income[12] Guidance and Projections - The company provided a guidance for 2026, expecting continued growth in fee revenue and net interest income[5] - The effective tax rate for 2025 is expected to be 21.1%, a slight increase of 0.3 percentage points from 2024[49] - Income before income tax expense, excluding notable items, is forecasted to reach $4,075 million in 2025, reflecting a 13.7% increase from $3,583 million in 2024[51] - The repositioning charges for 2025 are expected to total $326 million, indicating a significant restructuring effort[51] Notable Items - The company reported notable items impacting income, including a $130 million charge related to repositioning[45] - The company experienced a notable item impact of $(15) million from foreign exchange trading services in Q4 2024[43] - Client rescoping had a revenue impact of $24 million in Q1 2025[43]

Financial Performance - PNC reported a net income of $2,033 million for Q4 2025, an increase from $1,822 million in Q3 2025, representing a 12% quarter-over-quarter growth[7] - Total revenue for Q4 2025 was $6,071 million, up from $5,915 million in Q3 2025, marking a 2.6% increase[7] - Basic earnings per common share increased to $4.88 in Q4 2025, compared to $4.36 in Q3 2025, representing a 11.9% increase[7] - The company reported a net income excluding noncontrolling interests of $2,020 million in Q4 2025, an increase from $1,808 million in Q3 2025, reflecting an 11.7% growth[31] - Total revenue for the year ended December 31, 2025, was $14,863 million, compared to $14,547 million in 2024, reflecting a year-over-year increase of 2.2%[33] Revenue Breakdown - Net interest income for Q4 2025 was $3,731 million, compared to $3,648 million in Q3 2025, reflecting a 2.3% increase[7] - Noninterest income reached $2,340 million in Q4 2025, an increase from $2,267 million in Q3 2025, which is a 3.2% rise[7] - Noninterest income for Q4 2025 was $770 million, up from $706 million in Q4 2024, marking a growth of 9.1% year-over-year[33] - Total revenue for Corporate & Institutional Banking was $3,066 million in Q4 2025, compared to $2,909 million in Q3 2025, representing a 5.4% increase[31] Asset and Liability Management - PNC's total assets reached $550 billion as of December 31, 2025, reflecting growth in its balance sheet size[4] - Total assets increased to $573.572 billion as of December 31, 2025, up from $568.767 billion in the previous quarter, representing a growth of 1.4%[9] - Total liabilities increased to $512.936 billion from $509.729 billion, reflecting a growth of 0.4%[9] - Total assets as of December 31, 2025, amounted to $575.846 billion, an increase from $571.533 billion on September 30, 2025[11] Loan and Deposit Growth - Net loans reached $327.071 billion, an increase from $322.138 billion in the prior quarter, reflecting a growth of 1.5%[9] - Total deposits rose to $440.866 billion, compared to $432.749 billion in the previous quarter, marking an increase of 1.0%[9] - Total deposits reached $244,066 million in Q4 2025, compared to $239,514 million in Q4 2024, showing an increase of 1.9% year-over-year[33] Credit Quality and Loss Provisions - The provision for credit losses was $139 million in Q4 2025, down from $167 million in Q3 2025, indicating improved credit quality[7] - The allowance for loan and lease losses decreased slightly to $4.410 billion from $4.478 billion, indicating improved asset quality[9] - The total provision for credit losses for the year ended December 31, 2025, was $779 million, slightly down from $789 million in 2024[18] - Total gross charge-offs for the year ended December 31, 2025, amounted to $1,176 million, while total recoveries were $432 million, resulting in net charge-offs of $744 million[16] Nonperforming Assets - Total nonperforming assets increased to $2,361 million as of December 31, 2025, up from $2,299 million in the previous quarter[20] - Nonperforming loans to total loans ratio rose to 0.67% from 0.65% in the prior quarter[20] - Total nonperforming loans reached $2,218 million, up from $2,137 million in the previous quarter[20] - Total accruing loans past due 90 days or more increased to $380 million in December 2025 from $347 million in September 2025, representing a 9.5% increase[26] Efficiency and Cost Management - The efficiency ratio improved to 59% in Q4 2025, consistent with Q3 2025, indicating stable operational efficiency[7] - The efficiency ratio improved to 53% in Q4 2025 from 57% in Q4 2024, indicating better cost management[34] - Total noninterest expense for Q4 2025 was $1,107 million, an increase from $976 million in Q3 2025, representing a 13.4% rise[39] Employee and Operational Metrics - Total full-time employees increased to 53,859 in December 2025 from 53,523 in September 2025, reflecting a growth of 0.6%[29] - Loan origination volume for Q4 2025 was $1.6 billion, compared to $1.0 billion in Q1 2025, showing a significant increase of 60%[34] Investment and Equity - Total shareholders' equity increased to $60.585 billion, up from $58.990 billion in the previous quarter, a growth of 2.7%[9] - Client assets under administration totaled $472 billion as of December 31, 2025, an increase from $440 billion at the end of 2024, reflecting a growth of 7.3%[44]

Financial Performance - M&T Bank reported a quarterly net income of $759 million, or $4.67 per diluted share, and a full-year net income of $2.85 billion, or $17.00 per diluted share[2]. - M&T's net income for Q4 2025 was $759 million, an increase of 12% from $681 million in Q4 2024[44]. - Net income available to common shareholders rose to $718 million, up 11% from $644 million year-over-year[44]. - Basic earnings per share increased by 21% to $4.71, compared to $3.88 in the same quarter last year[44]. - For the full year 2025, diluted net operating earnings per common share were $17.20, up from $14.88 in 2024, reflecting a strong performance[12]. - Diluted net operating earnings per common share for Q4 2025 were $4.72, up from $3.92 in Q4 2024, reflecting a 20.4% increase[55]. - Net income for Q4 2025 was $759 million, an increase from $681 million in Q4 2024, representing a year-over-year growth of 11.5%[55]. Income and Revenue - Net interest income for Q4 2025 was $1.79 billion, a 1% increase from Q3 2025 and a 3% increase from Q4 2024, driven by loan and deposit growth[13]. - Noninterest income for Q4 2025 was $696 million, reflecting higher mortgage banking revenues, offset by a $28 million earnout payment related to the sale of the CIT business[9]. - Noninterest income for the fourth quarter of 2025 was $696 million, a decrease of 7% from $752 million in the third quarter of 2025[23]. - Total other income rose by 6% to $696 million in Q4 2025 from $657 million in Q3 2025[49]. - Other income for the year ended December 31, 2025, was $2.742 billion, compared to $2.427 billion in 2024, marking a growth of 13%[54]. - Mortgage banking revenues increased by 32% to $155 million in Q4 2025 compared to $117 million in Q4 2024[48]. Operational Efficiency - The efficiency ratio improved to 55.1% in Q4 2025 from 53.6% in Q3 2025, indicating better operational efficiency[10]. - The efficiency ratio improved to 55.1% from 56.8% year-over-year[44]. - The efficiency ratio improved to 55.1% in Q4 2025, compared to 56.8% in Q4 2024, indicating better cost management[54]. Loan and Asset Quality - The allowance for loan losses as a percentage of total loans decreased to 1.53% at December 31, 2025, down 5 basis points from the previous quarter[9]. - Nonaccrual loans decreased to $1.252 billion at December 31, 2025, down 17% from $1.512 billion at September 30, 2025[20]. - Total nonperforming assets fell to $1.287 billion, a 17% decrease from $1.549 billion in the previous quarter[20]. - Nonaccrual loans decreased by 26% to $1,252 million from $1,690 million in the previous year[44]. - Total nonperforming assets fell by 25% to $1,287 million compared to $1,725 million in 2024[44]. - Provision for credit losses decreased by 11% to $125 million in Q4 2025 from $140 million in Q3 2025[48]. Capital and Dividends - The Common Equity Tier 1 (CET1) capital ratio is estimated to be 10.84% at December 31, 2025[4]. - CET1 capital ratio was estimated at 10.84% as of December 31, 2025, down from 10.99% in the previous quarter[32]. - Total capital ratio was 14.43% at December 31, 2025, compared to 14.35% in the third quarter of 2025[32]. - Cash dividends declared on common and preferred stock totaled $230 million and $39 million, respectively, for the quarter ended December 31, 2025[33]. - M&T Bank increased its quarterly dividend by 11% in 2025 and repurchased 9% of its outstanding shares[9]. Asset Growth - Total assets increased by 3% to $213,510 million in 2025 from $208,105 million in 2024[50]. - Total loans increased to $137.600 billion in Q4 2025, up 1% from $136.527 billion in Q4 2024[52]. - Total deposits grew by 4% to $166,909 million in 2025 from $161,095 million in 2024[50]. - Interest-bearing deposits increased by 5% to $120,400 million in 2025 from $115,075 million in 2024[50]. - Average loans in Q4 2025 totaled $137.6 billion, with notable growth in commercial and industrial, residential real estate, and consumer loans[15]. - Preferred shareholders' equity increased by 18% to $2,834 million in 2025 from $2,394 million in 2024[50]. Stock Performance - The period-end common stock price increased by 7% to $201.48 from $188.01 in the previous year[44]. - The period-end common stock price increased to $201.48 in Q4 2025 from $197.62 in Q3 2025[49]. - The company repurchased 2.7 million shares at an average cost of $183.30 per share, totaling $507 million, compared to 2.1 million shares at $193.46 and 1.0 million shares at $206.70 in previous quarters[34].

Financial Performance - For Q4 2025, Regions Financial reported net interest income of $1,281 million, an increase from $1,257 million in Q3 2025[4] - Non-interest income for Q4 2025 was $640 million, slightly down from $659 million in Q3 2025[4] - Net income available to common shareholders for Q4 2025 was $514 million, a decrease from $548 million in Q3 2025[4] - The diluted earnings per share for Q4 2025 was $0.58, down from $0.61 in Q3 2025[4] - The company reported an adjusted net income available to common shareholders of $504 million for Q4 2025, down from $561 million in Q3 2025[4] - Net income for Q4 2025 was $534 million, a decrease from $569 million in Q3 2025 but equal to Q4 2024[21] - Net income available to common shareholders for the year ended December 31, 2025, was $2,061 million, representing a 16.2% increase from $1,774 million in 2024[38] - Net income for 2025 was $2,156 million, representing a 13.9% increase from $1,893 million in 2024[24] - Earnings per common share increased to $2.31 in 2025, up from $1.94 in 2024, reflecting a growth of 19.0%[24] Asset and Deposit Trends - Total assets at the end of Q4 2025 were $159,553 million, a slight decrease from $159,940 million in Q3 2025[4] - Total deposits increased to $131,128 million in Q4 2025, up from $130,334 million in Q3 2025[4] - Total deposits for Regions Financial Corporation increased to $129,850 million in Q4 2025, up 0.2% from Q3 2025 and 2.7% from Q4 2024[19] - Total deposits increased by $794 million (0.6%) from Q3 2025 to $131,128 million in Q4 2025, and increased by $3,525 million (2.8%) year-over-year from Q4 2024[18] - Wealth Management Segment deposits increased by $690 million (9.0%) from Q3 2025 to $8,344 million in Q4 2025, and increased by $608 million (7.9%) year-over-year from Q4 2024[18] Loan Performance - Total loans decreased by $996 million (1.0%) from Q3 2025 to $95,651 million in Q4 2025, and decreased by $757 million (0.8%) year-over-year from Q4 2024[16] - Net loans stood at $94.081 billion as of December 31, 2025, compared to $95.114 billion in 2024[10] - Total loans, net of unearned income, amounted to $96.077 billion, generating interest income of $1.389 billion at a yield of 5.75%[29] - Total business loans decreased to $63,004 million, a decline of $420 million or 0.7% from the previous quarter and down $551 million or 0.9% year-over-year[12] - Commercial and industrial loans amounted to $48,790 million, down $444 million or 0.9% from the previous quarter and down $881 million or 1.8% year-over-year[12] Credit Quality - The provision for credit losses was $115 million in Q4 2025, compared to $105 million in Q3 2025[4] - The allowance for credit losses stood at $1,686 million at the end of Q4 2025, down from $1,713 million in Q3 2025[4] - Non-performing loans as a percentage of total loans decreased to 0.73% in Q4 2025 from 0.96% in Q4 2024[10] - Total non-performing loans decreased to $698 million (0.73%) as of December 31, 2025, down from $758 million (0.79%) in the previous quarter[80] - Total commercial net charge-offs were $82 million for the quarter, up from $47 million in the previous quarter[76] Efficiency and Expenses - Efficiency ratio improved to 56.9% in 2025 from 59.5% in 2024[10] - Total non-interest expense for 2025 was $4,313 million, slightly higher than $4,242 million in 2024, indicating a 1.7% increase[24] - The adjusted efficiency ratio, a measure of productivity, is calculated as non-interest expense divided by total revenue, providing insights into the company's performance[59] - Total non-interest expense for the fourth quarter of 2025 was $1,098 million, a decrease of $5 million or 0.5% from $1,103 million in the previous quarter[56] Strategic Focus and Risks - The company anticipates potential declines in property values and increases in interest rates, which may adversely affect lending and financial results[1] - The company reported a significant risk related to changes in market interest rates, which could impact revenue and expenses[1] - The company highlighted the importance of managing credit risk and the potential impairment of loan collectability[1] - The company faces challenges in attracting and retaining deposits due to competitive pressures and changing consumer behaviors[1] - The company is committed to executing its strategic and operational plans to realize financial benefits from its initiatives[1]

Acquisition Details - QXO completed the acquisition of Beacon Roofing Supply for $124.35 per share, finalizing the merger on April 29, 2025[2]. - The acquisition was accounted for using the acquisition method of accounting, with QXO identified as the accounting acquirer[22]. - The preliminary aggregate acquisition consideration for the acquisition was $10,644.0 million[49]. - The estimated fair value of goodwill resulting from the acquisition is $5,068.9 million[49]. - The company recorded a write-off of $2.4 million related to loss on debt extinguishment as part of the acquisition[56]. Financing Activities - The company raised approximately $1.45 billion from public offerings of 55.8 million shares of common stock at $16.50 per share and 11.5 million depositary shares of Series B Mandatory Convertible Preferred Stock at $50 per share[3]. - QXO issued $2.25 billion in Senior Secured Notes and entered into a $2.25 billion senior secured term loan facility to finance the acquisition and related expenses[17]. - The May 2025 Equity Financing generated net proceeds of $892.5 million from the sale of 48.5 million shares of common stock, after deducting offering costs[20]. - The company also raised $558.1 million from the sale of 11.5 million depositary shares of Mandatory Convertible Preferred Stock, which were used to repay $1.4 billion of QXO Building Products' Term Loan Facility[21]. - In June 2025, the company raised $1.96 billion in net proceeds from the sale of 89.9 million shares at $22.25 per share, with additional proceeds of $38.1 million from the partial exercise of an underwriter option[25][26]. - The total gross proceeds from various equity financings in 2024 amounted to approximately $5.1 billion, including $1.0 billion from the Investment Agreement and $3.5 billion from the June 2024 Purchase Agreements[11][12]. - In January 2026, the company entered into an investment agreement to purchase up to 300,000 shares of Series C Convertible Perpetual Preferred Stock for an aggregate price of $3.0 billion to fund Qualifying Acquisitions[29]. - The company intends to use the net proceeds from the Convertible Preferred Investment for acquisitions exceeding $1.5 billion[30]. Financial Performance - For the year ended December 31, 2024, net sales were $9,820.1 million, with a gross profit of $2,396.2 million[33]. - Total operating expenses for the same period were $2,385.7 million, resulting in an income from operations of $10.5 million[33]. - The net income attributable to common stockholders for the year ended December 31, 2024, was $(242.6) million, with a net income per share of $(0.39) on a diluted basis[33]. - The company reported a net income (loss) of $(166.3) million for the year ended December 31, 2024[33]. - The weighted-average common shares outstanding were 621.4 million for the year ended December 31, 2024[33]. - Net sales reached $7,342.7 million, with QXO contributing $4,648.1 million and Beacon contributing $2,694.6 million[36]. - Gross profit totaled $1,839.3 million, with QXO's gross profit at $1,042.8 million and Beacon's at $664.8 million[36]. - Total operating expenses amounted to $1,999.6 million, with QXO's operating expenses at $1,218.5 million and Beacon's at $699.8 million[36]. - The net loss attributable to common stockholders was $377.0 million, with a loss per share of $0.46[36]. - The company incurred interest expense of $170.9 million, with a net interest income of $80.1 million[36]. - The provision for income taxes resulted in a benefit of $72.6 million, contributing to the overall net loss[36]. - The weighted-average common shares outstanding were 578.1 million for both basic and diluted calculations[36]. Pro Forma Adjustments - The unaudited pro forma combined financial information reflects operations from January 1, 2024, and includes Beacon's financials from April 29, 2025, to September 30, 2025[4]. - The pro forma adjustments are preliminary and subject to change based on final determinations of asset valuations and liabilities assumed in the acquisition[7]. - The January 2026 Investment Agreement's pro forma effect was not included in the financial information as it is contingent upon future acquisitions[31]. - Pro forma adjustments were made based on management's estimates and assumptions for the acquisition accounting[42]. - The pro forma weighted average shares outstanding increased to 621.4 million for the year ended December 31, 2024 due to the issuance of common stock from various financing agreements[61]. - The pro forma amortization of intangible assets was $466.7 million for the year ended December 31, 2024[53]. - The statutory income tax rate used for pro forma adjustments was 26.0% for both the year ended December 31, 2024 and the nine months ended September 30, 2025[57]. - The company anticipates that the adjustments to the combined statements of operations will not affect results beyond twelve months after the acquisition date[50]. - Adjustments to selling, general and administrative expenses (SG&A) resulted in a net pro forma adjustment of $55.7 million for the year ended December 31, 2024[54]. - Pro forma adjustments included a $131.7 million increase in cost of products sold for the estimated fair value of inventories recognized during the first year post-acquisition[50]. - The company made reclassifications to align QXO and Beacon's financial statement presentations, impacting interest and other income[44].

Acquisition Details - QXO completed the acquisition of Beacon Roofing Supply for $124.35 per share, finalizing the merger on April 29, 2025[2]. - The acquisition was accounted for using the acquisition method, with QXO identified as the accounting acquirer[22]. - QXO repaid all historical Beacon debt outstanding as part of the acquisition financing[19]. - The preliminary aggregate acquisition consideration for the acquisition was $10,644.0 million[49]. - Estimated fair value of goodwill from the acquisition is $5,068.9 million[49]. - The company recorded a write-off of $2.4 million related to loss on debt extinguishment as part of the acquisition[56]. Financing Activities - The company raised approximately $1.45 billion from public offerings of common stock and Mandatory Convertible Preferred Stock in May 2025[3]. - QXO issued $2.25 billion in Senior Secured Notes and entered a $2.25 billion senior secured term loan facility to finance the acquisition[17]. - The May 2025 Equity Financing included the sale of 48.5 million shares at $16.50 per share, generating $892.5 million in net proceeds[20]. - The company also raised $558.1 million from the issuance of 11.5 million depositary shares of Mandatory Convertible Preferred Stock[21]. - In June 2025, the company raised $1.96 billion in net proceeds from the sale of 89.9 million shares at $22.25 per share, with additional proceeds of $38.1 million from the partial exercise of an underwriter option[25]. - The proceeds from the June 2025 equity financing were used for general corporate purposes and not to pay down any debt related to the acquisition[26]. - On November 5, 2025, the company refinanced its Term Loan Facility, reducing the applicable margin for borrowings from 3.00% to 2.00% for Term SOFR borrowings and from 2.00% to 1.00% for base rate borrowings[27]. - The January 2026 Investment Agreement allows investors to purchase up to 300,000 shares of Series C Convertible Perpetual Preferred Stock for an aggregate price of $3.0 billion to fund one or more qualifying acquisitions[29]. - The company intends to use the net proceeds from the Convertible Preferred Investment for acquisitions with a purchase price exceeding $1.5 billion[30]. Financial Performance - For the year ended December 31, 2024, net sales were reported at $9,820.1 million, with a gross profit of $2,396.2 million[33]. - Total operating expenses for the same period were $2,385.7 million, resulting in an income from operations of $10.5 million[33]. - The net income attributable to common stockholders for the year ended December 31, 2024, was reported at a loss of $242.6 million[33]. - Basic net income per common share for the year was $(0.39)[33]. - Net sales reached $7,342.7 million, with QXO contributing $4,648.1 million and Beacon contributing $2,694.6 million[36]. - Gross profit totaled $1,839.3 million, with QXO's gross profit at $1,042.8 million and Beacon's at $664.8 million[36]. - Total operating expenses amounted to $1,999.6 million, with QXO's expenses at $1,218.5 million and Beacon's at $699.8 million[36]. - The net loss attributable to common stockholders was $377.0 million, with a basic and diluted loss per share of $0.46[36]. - The company incurred interest expense of $170.9 million, with a net interest income of $80.1 million[36]. - The provision for income taxes resulted in a benefit of $72.6 million, contributing to the overall net loss[36]. - The weighted-average common shares outstanding were 578.1 million for both basic and diluted calculations[36]. Pro Forma Adjustments - The unaudited pro forma combined financial information reflects operations from January 1, 2024, and includes Beacon's results post-acquisition[4]. - The pro forma adjustments are preliminary and subject to change based on final acquisition accounting[5]. - Pro forma adjustments were made based on management's estimates and assumptions for the acquisition accounting[42]. - Pro forma basic weighted average shares outstanding increased to 621.4 million for the year ended December 31, 2024[61]. - The statutory income tax rate used for pro forma adjustments is 26.0% for both the year ended December 31, 2024 and the nine months ended September 30, 2025[57]. - Pro forma amortization of intangible assets is estimated at $466.7 million for the year ended December 31, 2024[53]. - Adjustments to selling, general and administrative expenses (SG&A) resulted in a net pro forma adjustment of $55.7 million for the year ended December 31, 2024[54]. - Pro forma adjustment to cost of products sold includes $131.7 million for the estimated fair value of inventories recognized during the first year post-acquisition[50]. - The company made reclassifications to align QXO and Beacon's financial statement presentations, impacting interest expense and other income[44]. - The company anticipates a significant change in the effective tax rate post-merger due to various factors[57]. - The pro forma financing transaction accounting adjustments reflect new interest expenses associated with the acquisition financing totaling $356.1 million for the year ended December 31, 2024[55].

Financial Performance - Total Adobe ARR reached approximately $25.20 billion as of November 28, 2025, reflecting an 11.5% increase from $22.61 billion as of November 29, 2024[243]. - Digital Media ARR grew to $19.20 billion at the end of fiscal 2025, representing an 11.5% year-over-year growth from $17.22 billion[224]. - Digital Media segment revenue increased to $17.65 billion in fiscal 2025, up from $15.86 billion in fiscal 2024, marking an 11% year-over-year growth[224]. - Digital Experience revenue was $5.86 billion in fiscal 2025, up from $5.37 billion in fiscal 2024, representing a 9% year-over-year growth[226]. - Net income for fiscal 2025 was $7.13 billion, an increase of $1.57 billion or 28% compared to fiscal 2024[243]. - Total revenue for fiscal 2025 reached $23,769 million, an increase of 11% compared to $21,505 million in fiscal 2024[246]. Revenue Breakdown - Subscription revenue for fiscal 2025 was $22.90 billion, representing a 12% increase from $20.52 billion in fiscal 2024[239]. - Digital Media segment revenue grew by $1.79 billion to $17,649 million, representing an 11% increase from $15,864 million in fiscal 2024[246]. - Subscription revenue for Digital Media increased by 12% to $17,389 million, driven by strong performance in Creative Cloud Pro and Acrobat[247]. - Revenue from the Americas was $14,120 million, accounting for 59% of total revenue, with a 10% increase from $12,891 million in fiscal 2024[251]. Expenses and Costs - Cost of revenue for fiscal 2025 was $2.55 billion, which increased by $193 million or 8% compared to fiscal 2024[243]. - Operating expenses for fiscal 2025 were $12.51 billion, remaining relatively flat compared to fiscal 2024[243]. - Research and development expenses increased by 9% to $4,294 million, maintaining 18% of total revenue[259]. - Operating expenses totaled $12,512 million, a slight increase of 1% from $12,406 million in fiscal 2024[259]. - Interest expense rose by 56% to $263 million, primarily due to new senior notes issued in January 2025[267]. - Provision for income taxes increased by 17% to $1,604 million, with an effective tax rate of 18%[273]. Cash Flow and Investments - Cash flows from operations amounted to $10.03 billion during fiscal 2025, increasing by $1.98 billion or 25% compared to fiscal 2024[243]. - Net cash provided by operating activities for fiscal 2025 was $10.03 billion, an increase from $8.06 billion in fiscal 2024[292]. - Net cash used for investing activities in fiscal 2025 was $1.19 billion, primarily due to purchases of short-term and long-term investments[293]. - Net cash used for financing activities in fiscal 2025 was $11.06 billion, mainly due to common stock repurchases and repayment of notes[294]. Acquisitions and Agreements - The company entered into a definitive agreement to acquire Semrush Holdings, Inc. for approximately $1.9 billion, expected to close in the first half of fiscal 2026[299]. Financial Position - As of November 28, 2025, the company had $5.43 billion in cash and cash equivalents, down from $7.61 billion as of November 29, 2024[291]. - The company has a $1.5 billion senior unsecured revolving credit agreement, with no outstanding borrowings as of November 28, 2025[300]. - The stock repurchase program authorized up to $25 billion through March 14, 2028, with $11.28 billion spent on repurchases during fiscal 2025[305][306]. - The total valuation allowance for deferred tax assets was $806 million as of November 28, 2025, primarily related to certain U.S. state and federal credits and capital loss carryforwards[275]. Foreign Currency Exposure - For fiscal 2025, significant foreign currency revenue exposures include €3.43 billion in Euros, ¥163.83 billion in Japanese Yen, and £942 million in British Pounds[312]. - As of November 28, 2025, the gross notional amounts of outstanding foreign exchange contracts totaled $6.54 billion, with $3.27 billion in Euros and $884 million in Japanese Yen[312]. - A sensitivity analysis indicates that a 10% increase in the U.S. Dollar would increase the fair value of financial hedging instruments by $456 million[313]. - Long-term investment exposure in non-U.S. Dollar functional currency foreign subsidiaries totaled $1.32 billion as of November 28, 2025, with no hedging applied[314]. - The company does not use foreign exchange contracts for speculative trading or to entirely offset foreign currency exposure[315]. - Cash flow hedges for foreign currency revenue and expenses are utilized to mitigate risks, with maturities of up to 24 months[316]. Interest Rate Risk - As of November 28, 2025, the company had $1.16 billion in short-term investments, with a potential $4 million market value change from a 150 basis point shift in interest rates[322]. - The company has $6.15 billion of senior notes outstanding, with interest rate swaps converting $2.70 billion of fixed rates to floating rates[323]. - An immediate 50 basis point change in market interest rates would result in a $71 million change in the fair value of the hedged fixed-rate debt[323]. - The total carrying amount of senior notes was $6.21 billion, with a fair value of $6.18 billion based on observable market prices[324].