Financial Capacity and Debt - As of December 31, 2025, the company had a total capacity of $4.2 billion under repurchase agreements and term participation facilities, with $2.2 billion outstanding[47]. - The company had an unpaid principal balance of $235.0 million related to its real estate owned hotel portfolio and a secured term loan with an unpaid principal balance of $556.2 million[49]. - The net debt-to-equity ratio was 1.9x and the Total Leverage Ratio was 2.5x as of December 31, 2025, with expectations for the Total Leverage Ratio to range from 2.0x to 3.0x going forward[51]. - The company had $830.0 million of non-consolidated senior interests as of December 31, 2025, which are not reflected on the balance sheet[48]. - As of December 31, 2025, the company has not received any margin calls under its repurchase agreements, indicating stable financing conditions[487]. Investment Strategy and Risk Management - The company’s investment strategy emphasizes prudent risk management, primarily originating senior loans with conservative loan-to-value ratios to mitigate credit losses[482]. - The asset management team rigorously monitors investments, focusing on both quantitative and qualitative analyses to manage risks effectively[55]. - The company conducts comprehensive credit analysis and rigorous monitoring of borrowers to manage risks associated with loan repayments and tenant rent payments[491]. - Prepayment risk is managed by structuring loans with spread maintenance and minimum income levels to protect against early repayments[493]. Interest Rate and Market Risks - The company’s interest rate risk is influenced by the U.S. Federal Reserve's actions, with benchmark interest rates increasing by 5.25% by the end of 2023, impacting interest expenses and borrower debt servicing capabilities[480]. - The company expects that rising interest rates will generally increase net interest income, while declining rates may decrease it[481]. - Elevated interest rates may lead to an increase in borrowers requesting loan extensions, potentially impacting the company's liquidity and operational results[494]. - Real estate market values are subject to volatility due to various factors, including interest rates and economic conditions, which could lead to losses for the company[498]. Competition and Capital Raising - The company faces competition from various financial entities, which may limit its ability to originate or acquire attractive risk-adjusted investments[57]. - The company is exposed to risks related to equity and debt capital markets, which may impact its ability to raise capital through common stock or debt instruments[486]. - The company finances its operations through various means, including senior interests and secured term loans, but may face challenges due to market volatility and regulatory changes[488]. Counterparty and Currency Risks - Counterparty risks exist due to reliance on financial institutions for cash and financing, which the company mitigates by working with high credit-quality institutions[489]. - The company currently holds no foreign currency-denominated assets or liabilities, but may do so in the future, exposing it to currency risk[496].

Financial Performance - For the year ended December 31, 2025, Booking Holdings reported revenues of $26.9 billion, categorized into "merchant," "agency," and "advertising and other" revenues[17]. - Total revenues increased by approximately 13% in 2025 compared to 2024, including a benefit of about 3% from changes in foreign currency exchange rates[201]. - The company paid cash dividends of $1.2 billion during the year ended December 31, 2025, and declared a cash dividend of $10.50 per share, payable on March 31, 2026[169]. - The company repurchased shares of its common stock for an aggregate cost of $6.4 billion during the year ended December 31, 2025[173]. - The total stockholder return for the company from December 31, 2020, to December 31, 2025, increased from 100.00 to 244.36, outperforming the NASDAQ Composite Index and S&P 500 Index[172]. Market Trends and Growth - Booking.com achieved a year-over-year flight ticket growth of 37% and approximately 80% growth in attraction ticket sales, indicating strong demand in travel services[20]. - The company recognizes that global travel bookings are expected to grow, shifting from offline to online channels, which will benefit its service offerings[18]. - Global room nights increased by 8% year-over-year in 2025, with a 9% increase in Q4 2025 compared to Q4 2024, driven by strong travel demand in Europe and Asia[183]. - The mix of total gross bookings generated on a merchant basis increased to 70% in 2025, up from 63% in 2024, reflecting a shift from agency to merchant bookings[192]. - The mix of room nights booked for alternative accommodation properties was approximately 36% in 2025, up from 35% in 2024, indicating a growing consumer demand for these types of properties[195]. Strategic Initiatives - The company is focused on expanding its Genius loyalty program and increasing brand awareness in key markets such as Asia and the U.S.[15]. - Booking Holdings aims to integrate generative AI features to enhance consumer and partner experiences, driving operational efficiencies[15]. - The company is executing a Transformation Program to drive efficiency and create capacity for reinvestments in strategic priorities for long-term value creation[15]. - The company continues to focus on innovation and the development of an AI-powered traveler experience, referred to as the "Connected Trip," to enhance customer engagement and loyalty[190]. Employee and Organizational Culture - As of December 31, 2025, Booking Holdings employed approximately 24,300 employees, with 97% being full-time[38]. - The company emphasizes the importance of attracting and retaining top talent, focusing on employee engagement, mental well-being, and career development[40]. - The company measures organizational culture and engagement through regular surveys, sharing results with senior management to enhance employee feedback mechanisms[41]. - Retaining highly skilled employees is critical for performance, and challenges in attracting talent could negatively impact business growth and innovation[71]. Risks and Challenges - The company faces risks from declines in the travel industry, which can negatively impact financial performance due to fluctuations in consumer discretionary spending[47]. - Macroeconomic uncertainties and geopolitical tensions have caused significant volatility in foreign currency exchange rates, affecting consumer travel behavior[48]. - The company operates in a highly competitive market, facing pressure from online travel companies and large technology firms that may reduce market share and profit margins[50]. - The alternative accommodations business faces risks related to liability claims and regulatory developments, which could affect profitability and growth[64]. - Cybersecurity risks, including data breaches and system vulnerabilities, could lead to reputational harm and financial liabilities[83]. Compliance and Regulatory Issues - Compliance with evolving data privacy regulations, such as GDPR and CCPA, imposes significant obligations and potential penalties that could adversely affect financial condition[86]. - The company is subject to various global regulations that could lead to fines, penalties, and reputational damage if not adhered to, affecting its ability to conduct business[118]. - The company is involved in ongoing investigations related to competition law, which could lead to changes in business practices and potential financial liabilities[107][108]. - Compliance with new regulations such as the EU's DMA and DSA has increased operational costs and could impose additional obligations that may not apply to competitors[109][110]. Financial Liabilities and Assets - The company faces risks associated with increased levels of debt, which could affect its ability to make principal and interest payments[146]. - The company has a substantial investment portfolio, which is subject to market price volatility and could impact its financial condition[147]. - The company recognized goodwill and intangible assets impairment charges during fiscal year 2025, reflecting significant judgments and estimates that could materially differ from actual results[75]. - The company recognized a goodwill impairment charge of $180 million for KAYAK, resulting in an adjusted carrying value of $203 million[208].

Financial Performance - Fourth quarter revenue increased 11% to a record $286.2 million compared to $258.0 million in 2024, driven by 8% from acquisitions and 3% from favorable foreign currency translation[6] - Gross margin improved to 43.9%, up from 43.4% in the prior year[6] - Adjusted EPS rose 1% to $2.27, while GAAP EPS remained unchanged at $2.04 for both years[7] - Adjusted EBITDA increased 11% to $58 million, representing 20.3% of revenue[9] - Operating cash flow increased 17% to $60.8 million compared to $51.9 million in 2024[9] - Fiscal year 2025 revenue was $1,052.2 million, slightly down from $1,053.4 million in 2024, with organic revenue decreasing 4%[11] - Net income for the fiscal year decreased 9% to $102 million, with GAAP EPS down 9% to $8.65[12] - Revenue for the three months ended January 3, 2026, was $286,204,000, an increase of 10.9% compared to $258,030,000 for the same period in 2024[30] - Net income attributable to Kadant for the twelve months ended January 3, 2026, was $101,969,000, a decrease of 8.6% from $111,598,000 for the twelve months ended December 28, 2024[30] - Adjusted net income for the three months ended January 3, 2026, was $26,790,000, with adjusted diluted EPS of $2.27, compared to $26,548,000 and $2.25 for the same period in 2024[30] Segment Performance - Flow Control segment revenue for the three months ended January 3, 2026, was $99,639,000, up from $94,684,000 in the prior year, representing a 5.1% increase[32] - Industrial Processing segment revenue decreased to $117,635,000 for the three months ended January 3, 2026, from $101,428,000, a decline of 16%[32] - Material Handling segment revenue increased to $68,930,000 for the three months ended January 3, 2026, from $61,918,000, a growth of 11.5%[32] - Total bookings for the three months ended January 3, 2026, were $269,982,000, an increase of 12.2% from $240,644,000 in the prior year[32] Cash Flow and Assets - Operating cash flow for the twelve months ended January 3, 2026, increased to $171.328 million from $155.265 million in 2024, representing a growth of about 10.3%[36] - The company reported a free cash flow of $154.280 million for the twelve months ended January 3, 2026, compared to $134.260 million in 2024, marking an increase of about 14.9%[36] - The total assets as of January 3, 2026, were $1.712 billion, up from $1.430 billion as of December 28, 2024, indicating a growth of approximately 19.7%[38] Liabilities and Expenditures - The company’s total liabilities increased to $721.111 million as of January 3, 2026, from $572.217 million in 2024, representing an increase of about 25.9%[38] - Capital expenditures for the twelve months ended January 3, 2026, totaled $17.048 million, down from $21.005 million in 2024, reflecting a decrease of approximately 19%[36] Future Outlook - For 2026, the company expects revenue between $1.160 billion and $1.185 billion, with GAAP EPS projected between $10.27 and $10.62[15] - The company anticipates first quarter 2026 revenue of $270 to $280 million, with adjusted EPS expected between $1.78 and $1.88[15] Risks and Challenges - The company faces risks related to adverse changes in global and local economic conditions, impacting revenue predictions from large capital equipment projects[43] - There are uncertainties regarding the demand for coal, influenced by economic and environmental risks, which could affect overall performance[43] - Supply chain constraints and inflationary pressures are expected to impact raw material prices and availability, potentially affecting manufacturing operations[43] - Changes in global timber supply and the level of residential construction activity are critical factors influencing the company's operations[43] - The company is monitoring the impact of climate change and compliance with environmental regulations on its mining industry operations[43] - Currency fluctuations and changes in government regulations worldwide pose additional risks to financial stability[43] - Future sales of capital equipment in China remain variable and uncertain, which could significantly impact revenue[43] - The company is addressing cybersecurity risks and the potential for data breaches as part of its operational strategy[43] - The company is focused on managing its internal growth strategy amidst competition and potential restructuring efforts[43] - The company is committed to protecting its intellectual property and managing its debt obligations effectively[43]

User Engagement - Monthly active users are defined as unique users accessing at least one product in a month, with the highest number reported during the period[24]. Product Offerings - Figma's subscription model offers annual or monthly plans per seat, catering to diverse user needs from freelancers to Fortune 500 companies[55]. - Figma's product offerings include a free Starter plan, a Professional plan for individuals and small teams, an Organization plan for businesses, and an Enterprise plan for managing multiple products or brands[64]. - Figma Sites allows users to publish designs as working websites, featuring responsive design capabilities and a content management system[43][45]. - Figma Make enables users to create functional prototypes directly from prompts, streamlining the product development process[37][38]. - Figma Weave integrates AI models with professional editing tools, allowing users to refine AI-generated outputs on a single canvas[49][50]. - The platform has expanded to include products like FigJam, Figma Slides, Figma Draw, and Figma Buzz, with significant investments in AI functionality to enhance user experience[72]. Strategic Acquisitions - The acquisition of Payload CMS in 2025 enhances Figma's offerings with a customizable backend for scalable websites and apps[45][46]. - The company has made strategic acquisitions, including Payload and Weavy in 2025, to enhance its platform capabilities in media generation and editing[73]. Collaboration and Community - The company emphasizes real-time collaboration through its browser-based platform, leveraging WebGL for seamless sharing[57]. - Figma's community initiatives include the annual Config conference and various Friends of Figma chapters, fostering collaboration among users globally[84]. Sales and Marketing - Figma's direct sales process supports larger customers, expanding accounts with more seats and products[62]. - The integrated marketing efforts have successfully driven awareness and adoption, contributing to the growth of managed accounts[62]. - Figma's sales strategy involves collaborative efforts with customer champions and solutions consultants to tailor offerings to specific customer needs[66]. Security and Compliance - The Governance+ add-on was introduced in 2024 to provide centralized control and advanced permissioning for security-conscious customers, with FedRAMP authorization achieved in early 2025[68]. - Figma's security program is regularly audited and includes data encryption, access controls, and multi-factor authentication to protect user data[75]. Financial Overview - As of December 31, 2025, the company had cash and cash equivalents of $403.5 million, marketable securities of $1.3 billion, and digital assets of $15.6 million[441]. - The fair value of the company's investment in a Bitcoin exchange-traded fund was $73.7 million as of December 31, 2025[446]. - The fair value of the company's Bitcoin investment included within digital assets was $15.1 million as of December 31, 2025[447]. - The company reported no amounts outstanding under the Revolving Credit Facility as of December 31, 2025[442]. Market Risks - The company is exposed to market risks primarily due to fluctuations in interest rates, foreign currency exchange rates, and equity prices[440]. - The company has experienced fluctuations in foreign exchange gains and losses related to changes in foreign currency exchange rates[444]. - A hypothetical 100 basis points change in interest rates would have changed the fair value of the company's investments in available-for-sale debt securities by approximately $10.2 million[441]. - A hypothetical 10% decrease in the price of the Bitcoin investment would not have had a material impact on the company's consolidated financial statements for the periods presented[447]. Economic Impact - The company believes inflation has not had a material effect on its business, results of operations, or financial condition[445]. - The company experiences seasonality in billings, which may become more pronounced as larger customers account for a greater percentage of its business[71].

Revenue Performance - Liberty Latin America reported Q4 2025 revenue of $1,160 million, a 1% increase year-over-year, and FY 2025 revenue of $4,442 million, a slight decline of 1% compared to FY 2024[5]. - C&W Panama achieved a revenue growth of 10% year-over-year in Q4 2025, driven by a 24% increase in B2B revenue[4][10]. - Liberty Networks reported an 18% revenue increase in Q4 2025, supported by a significant contract win and ongoing subsea capacity momentum[12]. - Liberty Puerto Rico experienced a 4% decline in revenue year-over-year in Q4 2025, attributed to challenges in mobile network migration[12]. - Total revenue for the Cable & Wireless Borrowing Group was $692.8 million in Q4 2025, representing a 4% increase from $667.3 million in Q4 2024[34]. - Liberty Puerto Rico's revenue decreased by 4% to $301.3 million in Q4 2025 from $314.1 million in Q4 2024[36]. - Liberty Costa Rica reported a revenue of CRC 83.9 billion for Q4 2025, a decrease of 2% compared to CRC 85.8 billion in Q4 2024[39]. Adjusted OIBDA - Adjusted OIBDA for Q4 2025 was $451 million, reflecting an 8% increase year-over-year, while FY 2025 Adjusted OIBDA reached $1,706 million, a 9% increase from FY 2024[5]. - Adjusted OIBDA for the year ended December 31, 2025, increased by 9% on both a reported and rebased basis compared to the prior year, with Q4 growth at 8%[14]. - C&W Panama's Adjusted OIBDA rose by 18% on both a reported and rebased basis, driven by strong B2B project revenue[14]. - Liberty Puerto Rico's Adjusted OIBDA increased by 26% on both a reported and rebased basis, despite a revenue decline[14]. - Total Adjusted OIBDA for Q4 2025 was $451.3 million, up from $418.2 million in Q4 2024, reflecting an 8% increase[14]. - Adjusted OIBDA for the Cable & Wireless Borrowing Group increased by 4% to $321.6 million in Q4 2025 compared to $307.8 million in Q4 2024[34]. - Adjusted OIBDA for Liberty Puerto Rico for the three months ended December 31, 2025, was $89.4 million, up from $70.8 million for the same period in 2024[95]. Capital Expenditures - Capital expenditures for Q4 2025 were $220 million, representing an 8% decrease from $240 million in Q4 2024, with a capital intensity of 19% of revenue[5]. - Capital expenditures for the year ended December 31, 2025, totaled $500.0 million, down from $540.4 million in 2024[17]. - The company added 220.3 million in property and equipment during Q4 2025, compared to 240.1 million in Q4 2024[67]. - Property and equipment additions as a percentage of revenue were 14.4% for the year ended December 31, 2025, compared to 16.3% in 2024[17]. Debt and Leverage - Consolidated debt and finance lease obligations amounted to $8,349.8 million as of December 31, 2025[23]. - The consolidated leverage ratio was 4.7x, with a net leverage ratio of 4.3x as of December 31, 2025[23]. - The total carrying amount of debt for Cable & Wireless was $4.8625 billion as of December 31, 2025[35]. - The net carrying amount of debt for Cable & Wireless was $4.355 billion as of December 31, 2025[35]. - Liberty Puerto Rico's total debt and finance lease obligations amounted to $2,935.8 million, with a net carrying amount of $2,813.5 million after accounting for cash and cash equivalents[37]. - The company reported a Covenant Proportionate Net Leverage Ratio of 3.5x as of December 31, 2025[35]. - The Covenant Consolidated Net Leverage Ratio for Liberty Puerto Rico was 14.0x as of December 31, 2025, indicating a significant leverage position[38]. Customer Metrics - The total customer base decreased to 1,834,900 in Q4 2025, with organic customer losses of 66,600[7]. - Liberty Caribbean's total subscriber count reached 6,794,000 as of December 31, 2025, with a total of 4,692,600 fixed-line and mobile subscribers[41]. - Liberty Puerto Rico experienced a decline of 7,300 RGUs in Q4 2025 compared to Q3 2025, attributed to the impact of Hurricane Melissa[42]. - The number of mobile subscribers reached 5.2 million, an increase of 8% year-over-year[52]. Cash Flow - The company achieved a record fourth quarter in Adjusted Free Cash Flow (FCF) of $278 million, compared to $196 million in Q4 2024[5]. - Adjusted Free Cash Flow (Adjusted FCF) for the three months ended December 31, 2025, was $233.8 million, up from $163.2 million in the same period of 2024, representing a 43% increase[70]. - Net cash provided by operating activities for the year ended December 31, 2025, was $805.9 million, compared to $756.3 million in 2024, indicating a growth of 6.3%[70]. Strategic Focus - The company is focused on organic growth and cash flow expansion, with ongoing efficiency initiatives expected to support financial performance in 2026[3]. - Liberty Latin America anticipates continued subscriber growth and demand for connectivity in the region, influenced by its digital strategy and product innovation[30]. - The company plans to expand its service offerings in new markets, targeting a 15% increase in customer relationships by the end of 2026[60]. - The company is investing in new technologies to enhance service delivery, with a focus on improving operational efficiency and customer satisfaction[57].

Revenue Performance - Liberty Latin America reported Q4 2025 revenue of $1,160 million, a 1% increase year-over-year, and FY 2025 revenue of $4,442 million, a slight decline of 1% compared to FY 2024[5]. - C&W Panama achieved a revenue growth of 10% year-over-year in Q4 2025, driven by a 24% increase in B2B revenue[10]. - Liberty Puerto Rico's revenue decreased by 4% year-over-year in Q4 2025, attributed to challenges in mobile network migration[12]. - Total revenue for the Cable & Wireless Borrowing Group was $692.8 million for the three months ended December 31, 2025, representing a 4% increase from $667.3 million in the prior quarter[34]. - Liberty Puerto Rico's revenue for the three months ended December 31, 2025, was $301.3 million, a 4% decrease from $314.1 million in the prior year[36]. - Liberty Costa Rica reported a revenue of CRC 318.4 billion for the year ended December 31, 2025, representing a 1% increase compared to CRC 315.8 billion in 2024[39]. Adjusted OIBDA - Adjusted OIBDA for Q4 2025 was $451 million, reflecting an 8% increase year-over-year, while FY 2025 Adjusted OIBDA reached $1,706 million, a 9% increase from FY 2024[5]. - Adjusted OIBDA for the year ended December 31, 2025, increased by 9% on both a reported and rebased basis compared to the prior year, with Q4 growth at 8%[14]. - C&W Panama's Adjusted OIBDA rose by 18% on both a reported and rebased basis, driven by strong B2B project revenue[14]. - Liberty Puerto Rico's Adjusted OIBDA increased by 26% on both a reported and rebased basis, despite a revenue decline[14]. - Total Adjusted OIBDA for Q4 2025 was $451.3 million, up from $418.2 million in Q4 2024, reflecting an 8% increase[14]. - Adjusted OIBDA for the Cable & Wireless Borrowing Group rose by 4% to $321.6 million, compared to $307.8 million in the previous quarter[34]. Operating Income - Operating income for Q4 2025 improved to $126 million, a 6% increase from $119 million in Q4 2024, and for FY 2025, it was $108 million compared to a loss of $77 million in FY 2024[5]. - Operating income for Liberty Puerto Rico improved significantly to $17.8 million, compared to a loss of $16.8 million in the same quarter last year, marking a 206% increase[36]. - Operating income less property and equipment additions was $(95) million for Q4 2025, an improvement from $(122) million in Q4 2024[19]. Capital Expenditures - Capital expenditures for Q4 2025 were $220 million, representing an 8% decrease from $240 million in Q4 2024, with capital intensity at 19% of revenue[5]. - Capital expenditures for the year ended December 31, 2025, totaled $500.0 million, down from $540.4 million in 2024[17]. - Property and equipment additions as a percentage of revenue were 14.4% for the year ended December 31, 2025, compared to 16.3% in 2024[17]. - Property and equipment additions for the year ended December 31, 2025, were $640.1 million, down from $725.3 million in 2024, suggesting a reduction in capital expenditures[67]. Debt and Leverage - Consolidated debt and finance lease obligations amounted to $8.35 billion as of December 31, 2025[23]. - The consolidated leverage ratio was 4.7x, with a net leverage ratio of 4.3x as of December 31, 2025[23]. - The total carrying amount of debt for C&W was $4.8625 billion as of December 31, 2025, with a net carrying amount of debt of $4.355 billion after accounting for cash and cash equivalents[35]. - The Covenant Proportionate Net Leverage Ratio for C&W was reported at 3.5x, calculated based on annualized Covenant EBITDA[35]. - The Covenant Consolidated Net Leverage Ratio for Liberty Puerto Rico was 14.0x as of December 31, 2025, calculated based on annualized Covenant EBITDA[38]. - The consolidated net leverage ratio as of December 31, 2025, was 4.3x, down from 4.6x on September 30, 2025[88]. Customer Metrics - The total customer base decreased to 1,834,900 in Q4 2025, with organic customer losses of 66,600[7]. - Liberty Caribbean's total subscriber count reached 6,794,000 as of December 31, 2025, with a total of 4,692,600 fixed-line and mobile subscribers[41]. - The number of mobile subscribers increased to 3.5 million, reflecting a growth of 5% year-over-year[52]. - Liberty Puerto Rico experienced a decline of 7,300 RGUs in the quarter ended December 31, 2025, primarily due to the impact of Hurricane Melissa[42]. Cash Flow - The company reported a record fourth quarter in Adjusted Free Cash Flow (FCF) of $278 million, compared to $196 million in Q4 2024[5]. - Adjusted Free Cash Flow for the year was reported at $800 million, highlighting strong cash generation capabilities[63]. - Adjusted Free Cash Flow (Adjusted FCF) for the three months ended December 31, 2025, was $233.8 million, up from $163.2 million in the same period of 2024, representing a 43% increase[70]. - Net cash provided by operating activities for the year ended December 31, 2025, was $805.9 million, compared to $756.3 million in 2024, reflecting a growth of 6.5%[70]. Future Outlook - The company is focused on organic growth and cash flow expansion, with a strategic agreement with Amazon Web Services aimed at enhancing product offerings in the region[3]. - Future guidance indicates expected revenue growth of 5-7% for the upcoming fiscal year, driven by increased customer acquisition and retention strategies[67]. - The LPR Acquisition, completed on September 3, 2024, is expected to impact future revenue and Adjusted OIBDA positively, although specific projections were not provided[74].

Stock Repurchase and Financial Management - The company announced an increase in its expected stock repurchase range for fiscal year 2025 to between 7.0% and 8.5% of outstanding common stock as of December 31, 2024, with $214.0 million used to repurchase 3,337,844 shares in 2025, representing approximately 7.9% of outstanding stock [39]. - As of December 31, 2025, $960.6 million remains available for stock repurchases, with plans to repurchase between 5.0% and 10.0% of outstanding common stock in 2026 [39]. - The company anticipates utilizing at least 50% of its free cash flow from 2026 to 2030 for stock repurchases [39]. - The company repurchased $217.2 million of its common stock in 2025, a decrease from $418.0 million in 2024 [358]. - The stock repurchase program was expanded to $1.0 billion, with $960.6 million remaining available for repurchases as of December 31, 2025 [361]. - The company expects total capital expenditures for 2026 to be between $60.0 million and $70.0 million [355]. - The net leverage ratio as of December 31, 2025, was 2.52 to 1.00, below the maximum requirement of 3.75 to 1.00 [366]. - Expected future interest payments on debt are approximately $209.5 million over the life of the debt obligations [371]. AI and Technology Integration - The company is focused on enhancing customer experience through AI-powered solutions, integrating payment services, analytics, and business intelligence into its offerings [41]. - AI is a core pillar of the company's long-term business strategy, with ongoing development of AI features to improve operational efficiency and decision-making [49]. - The company has introduced generative AI features across multiple products to enhance customer engagement and streamline workflows [47]. - Blackbaud Raiser's Edge NXT® is highlighted as the first and only all-inclusive cloud fundraising and relationship management solution, integrating various functionalities to enhance user experience [57]. - The company’s data intelligence solutions provide predictive insights and fundraising performance metrics, helping nonprofits optimize their strategies [52]. - Blackbaud Financial Edge NXT® is recognized as the market-leading solution for fund accounting, ensuring compliance and transparency for nonprofit organizations [64]. - The company emphasizes its commitment to responsible AI development, monitoring regulatory developments to mitigate ethical and legal issues [50]. - Blackbaud's technology strategy includes leveraging multiple clouds (AWS and Azure) for high reliability and security, enabling rapid innovation [92]. - The company emphasizes AI-powered solutions, with a commitment to responsible AI adoption through initiatives like the AI Literacy Program launched in 2025 [99]. Employee Engagement and Corporate Responsibility - Blackbaud employed approximately 2,800 professionals worldwide as of December 31, 2025, with no union representation [94]. - Approximately 91% of employees value Blackbaud's commitment to social responsibility, driving engagement and service quality [95]. - Employee participation in affinity groups grew by 5% in 2025, engaging 45% of the global workforce [101]. - The company has achieved carbon neutrality annually since 2021 and was recognized by Newsweek as one of the World's Greenest Companies in 2025 [101]. Financial Performance Metrics - GAAP revenue for 2025 was $1,128.4 million, a decrease of 2.3% from $1,154.6 million in 2024 [324]. - Non-GAAP organic revenue for 2025 was $1,128.4 million, reflecting a growth of 5.5% compared to $1,069.1 million in 2024 [329]. - Non-GAAP net income for 2025 was $215.5 million, compared to $210.0 million in 2024, indicating a slight increase [324]. - Non-GAAP adjusted EBITDA for 2025 was $405.3 million, with a margin of 35.9% [334]. - The Rule of 40 metric for 2025 was 41.4%, combining non-GAAP organic revenue growth and non-GAAP adjusted EBITDA margin [334]. - GAAP gross profit for 2025 was $663.3 million, with a gross margin of 58.8%, up from 54.7% in 2024 [324]. - Non-GAAP gross profit for 2025 was $702.7 million, with a gross margin of 62.3% [324]. - GAAP net income for 2025 was $115.0 million, a significant recovery from a loss of $299.5 million in 2024 [334]. - Non-GAAP organic recurring revenue for 2025 was $1,106.2 million, representing a growth of 5.8% from $1,045.7 million in 2024 [329]. - Non-GAAP free cash flow for 2025 was $203.5 million, down from $228.8 million in 2024, representing an 11.0% decrease [342]. - Cash and cash equivalents decreased by 42.5% to $38.9 million in 2025 from $67.6 million in 2024 [347]. - Total carrying value of debt increased by 3.2% to $1.1 billion in 2025 compared to $1.075 billion in 2024 [347]. Revenue and Deferred Revenue Insights - Deferred revenue increased by 3.1% from $360.6 million in 2024 to $371.8 million in 2025, with the current portion rising by 2.9% [309]. - The increase in deferred revenue was primarily due to billings related to contract renewals and new subscription sales of cloud solutions [311]. - Fluctuations in foreign currency exchange rates increased total revenue by $3.5 million and income from operations by $2.1 million during 2025 [376]. - The accumulated currency translation adjustment was a loss of $3.8 million as of December 31, 2025, compared to a loss of $12.7 million as of December 31, 2024 [375]. Legal and Compliance Matters - The company has completed required improvements to its cybersecurity programs and tools as part of legal settlements [374]. - The company has not made any material changes in its accounting methodology for revenue recognition during the year ended December 31, 2025 [380]. - The company made assumptions in estimating future cash flows and fair values, including annual revenue growth rates and discount rates reflecting risk [398]. - No significant non-recurring fair value adjustments were made to long-lived assets or intangible assets during 2025 [399]. - The company does not anticipate material changes in future estimates or assumptions for assessing impairment losses [400]. - If actual results differ from estimates, the company may face impairment charges that could adversely impact its financial position [400]. - Recently issued accounting pronouncements may affect the company's financial position and results of operations when adopted [401].

Financial Performance - Adjusted EBITDA for the year ended December 31, 2025, was $153.655 million, a significant increase from $92.539 million in 2024 and $8.168 million in 2023 [393]. - The company generated a net income of $74.029 million in 2025, compared to a net income of $7.236 million in 2024 and a net loss of $60.055 million in 2023 [393]. - Revenue for the year ended December 31, 2025, reached $1,134,428, representing a 23% increase from $924,083 in 2024 [428]. - Net income surged to $74,029 in 2025, a remarkable increase of 923% compared to $7,236 in 2024 [428]. - Income from operations rose significantly by 249% to $87,424 in 2025 from $25,048 in 2024 [428]. User Metrics - Monthly Active Users (MAUs) in the United States and Canada increased year-over-year, driven by strong customer retention and effective marketing strategies [378]. - Average Revenue Per Monthly Active User (ARPMAU) remained flat in the United States and Canada for 2025, despite a significant increase in MAUs [386]. - The year-over-year increase in MAUs in Latin America was attributed to strong customer retention and the launch in Peru during Q3 2024 [382]. Market and Competition - The company operates in 16 U.S. states and four international markets, focusing on online casino and sports betting [368]. - The online gaming market is still in its early stages, with many U.S. states and foreign jurisdictions exploring legalization and regulation [396]. - The company faces competition from established industry players, but leverages its proprietary platform and marketing strategies to maintain a competitive edge [394]. Revenue and Costs - Costs of revenue increased by 23% to $741,664 in 2025 from $602,036 in 2024 [428]. - Revenue increased by $210.3 million, or 23%, to $1,134.4 million in 2025 compared to $924.1 million in 2024, driven by growth in existing markets and expansion into new markets like Peru [429]. - Costs of revenue rose by $139.6 million, or 23%, to $741.6 million in 2025, with gaming taxes, market access costs, and payment processing costs contributing significantly to the increase [430]. Expenses - Sales and marketing expenses increased by 4% to $164,650 in 2025, up from $158,590 in 2024 [428]. - General and administrative costs decreased by 5% to $100,720 in 2025 from $106,206 in 2024 [428]. - Depreciation and amortization expenses increased by $7.8 million, or 24%, to $40.0 million in 2025, with the percentage of revenue rising to 4% from 3% in 2024 [433]. Cash Flow and Financial Position - As of December 31, 2025, the company had $336.3 million in cash and cash equivalents, excluding restricted customer cash deposits [445]. - Net cash provided by operating activities increased by $58.6 million to $165.0 million in 2025, compared to $106.4 million in 2024, primarily due to higher net income of $66.8 million [456]. - The company expects material cash requirements in the next 12 months to include $18.3 million in non-cancellable purchase obligations with marketing vendors and $4.1 million in minimum license and market access fees [446]. Stock and Shareholder Returns - The stock repurchase program authorized up to $50 million, with 733,019 shares repurchased in 2025 at an average price of $10.41, totaling approximately $7.6 million [454]. Tax and Regulatory Environment - The company is subject to varying tax rates on online casino and sports betting across different jurisdictions, which can impact profitability [398]. - Income tax benefit was $85.1 million in 2025, compared to an expense of $24.6 million in 2024, primarily due to the release of a valuation allowance [436]. Economic Factors - Inflation has not materially affected the company's financial condition or results of operations as of December 31, 2025, but potential inflationary pressures could impact costs and customer spending [476]. - Foreign currency exposure accounted for less than 20% of revenue for the fiscal years ended December 31, 2025, and 2024, with no material effect from a 10% change in currency values [475].

Company Operations and Market Presence - The company operates in Puerto Rico, Panama, Costa Rica, Jamaica, and other parts of Latin America, providing broadband, video, telephony, and mobile services[32]. - The company is the largest provider of mobile and fixed-line high-speed broadband and video services in several markets, indicating strong market share[34]. - The company has a total of 1,637,200 homes passed in the Liberty Caribbean segment, with 741,900 customer relationships[39]. - In C&W Panama, there are 995,100 homes passed and 281,000 customer relationships, contributing to a total of 1,991,100 mobile subscribers[39]. - The company operates an extensive subsea and terrestrial fiber optic cable network connecting over 30 markets, enhancing its service delivery capabilities[33]. Revenue Generating Units and Customer Relationships - As of December 31, 2025, the total Revenue Generating Units (RGUs) reached 6,794,000, with 4,692,600 in fixed-line services and 3,920,400 in mobile services[39]. - The total customer relationships stood at 1,834,900, with 1,022,900 in fixed-line services and 862,400 in mobile services[39]. - The company experienced a reduction of approximately 136,000 RGUs due to Hurricane Melissa, impacting 65,000 fixed-line telephony, 57,000 broadband internet, and 14,000 video subscribers[39]. Service Offerings and Technology - The company has a diverse service offering across the Caribbean and Latin America, including mobile, broadband, video, and fixed-line telephony services[59]. - The company aims to leverage its full-service product suite to enhance fixed-mobile convergence offerings[32]. - The maximum download speed offered for broadband internet services is 1,000 Mbps across multiple markets, enhancing customer connectivity options[57]. - The company is transitioning to VoIP technology for telephony services, replacing older systems to improve service quality[74]. - Video service offerings are being enhanced with next-generation digital platforms, allowing for features like DVR and on-demand content access[69]. Infrastructure and Network Development - Approximately 170,000 homes were upgraded or passed as part of the Network Extension programs during 2025, indicating ongoing investment in infrastructure[65]. - Liberty Networks operates close to 35,000 kilometers of submarine fiber optic cable with an activated capacity of over 50 Tbps, allowing for significant data traffic management[79]. - Over 97% of Liberty Networks' broadband communications network is capable of delivering speeds of 1 Gbps or above, following upgrades to DOCSIS 3.1 and FTTH technologies[86]. - Liberty Networks has entered into an asset purchase agreement with EchoStar to acquire spectrum assets in Puerto Rico and USVI, which is expected to close in September 2024[90]. Regulatory Environment and Compliance - The company is subject to various risks, including economic conditions, regulatory changes, and competition, which could impact future performance[30]. - Liberty Networks operates under various regulatory licenses and concessions, which are subject to renewal processes in multiple jurisdictions, including Anguilla and Trinidad and Tobago[99]. - The Electronic Communications Bill in ECTEL states may have a material adverse impact on Liberty Caribbean's operations, with implementation expected to be complex and time-consuming[106]. - The company is subject to universal service obligations, ensuring access to basic telecommunication services at minimum quality standards across its markets[109]. Customer Retention and Competitive Strategy - The company aims to enhance customer retention and minimize churn by offering bundled services, which include discounts for selecting multiple services[71]. - The company focuses on offering converged services, including video, internet, fixed telephony, and mobile, as a key component of its growth strategy[160]. - Liberty Caribbean is experiencing a trend towards lower interconnection rates in its markets, with regulators setting maximum rates for telephony services and interconnect charges[101]. - The competitive landscape includes significant pressure on pricing due to competition from companies like Digicel and Claro in various markets[180]. Employee and Corporate Social Responsibility - As of December 31, 2025, the company employed approximately 9,000 full-time employees across its segments, with a total employee attrition rate of approximately 21% during 2025[178]. - The company reported that women represent 40% of its global employees and managerial positions, highlighting its commitment to diversity[178]. - In 2025, over 930 employees contributed nearly 7,500 volunteer hours through the company's Mission Week initiative, demonstrating its commitment to corporate social responsibility[185].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended 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 Commission file number 001-38335 Liberty Latin America Ltd. (Exact name of Registrant as specified in its charter) Bermuda 98-1386359 (State or Other Jurisdiction of Incor ...