Financial Performance - Operating revenues for 2025 were $3.965 billion, a 13% increase from $3.524 billion in 2024[5] - Adjusted EBITDA for 2025 was $1.37 billion, up 19% from $1.148 billion[5] - Cash flows from operations increased by $302 million, reaching $749 million, a 68% rise[5] - Free cash flow for 2025 was $626 million, up from $193 million, representing a $433 million increase[5] - Contract drilling revenues for 2025 reached $3,965 million, a 12.5% increase from $3,524 million in 2024 and a 40% increase from $2,832 million in 2023[26] - Adjusted EBITDA for YTD December 31, 2025, was $1,370 million, with an adjusted EBITDA margin of 34.6%, compared to $1,148 million and a margin of 32.5% for the same period in 2024[38] Debt and Liquidity - Total principal amount of debt was reduced to $5.686 billion, down $1.258 billion or 18%[5] - Total liquidity as of 2025 was $1.507 billion, including an undrawn revolving credit facility[5] - Long-term debt decreased to $5,212 million in 2025 from $6,195 million in 2024[28] - Debt repayments YTD amounted to $(1,556) million, with $(1,106) million in the most recent quarter[44] - Debt repayments for the previous YTD reached $(2,103) million, with $(30) million in the most recent quarter[44] - Debt repayments paid from debt proceeds for the previous YTD were $1,748 million, indicating a strong reliance on debt financing[44] Losses and Impairments - The net loss attributable to controlling interest for 2025 was $2.915 billion, or $3.04 per diluted share[6] - The total operating loss for 2025 was $2,337 million, compared to a loss of $417 million in 2024 and $325 million in 2023[26] - Net loss attributable to controlling interest for 2025 was $2,915 million, significantly higher than the $512 million loss in 2024 and $954 million in 2023[26] - The company reported a loss on impairment of assets of $3,049 million in 2025, compared to $772 million in 2024 and $57 million in 2023[26] - Loss on impairment of assets for YTD December 31, 2025, was $3,049 million, significantly higher than the $772 million reported for the same period in 2024[38] - The company experienced a profit margin of (73.5)% for YTD December 31, 2025, compared to (14.5)% for the same period in 2024[38] Operational Efficiency - The company achieved a revenue efficiency of 96.5%, up from 94.5% in 2024[5] - Average daily revenue for ultra-deepwater floaters in Q4 2025 was $466,000, up from $460,200 in Q3 2025 and $428,200 in Q4 2024[32] - Total fleet average rig utilization in Q4 2025 was 85.8%, an increase from 76.0% in Q3 2025 and 66.8% in Q4 2024[32] - Revenue efficiency for the total fleet in Q4 2025 was 96.2%, compared to 97.5% in Q3 2025 and 93.5% in Q4 2024[32] Future Projections - For 2026, the company projects contract drilling revenues between $3.800 billion and $3.950 billion[11] - The company added $839 million in contract backlog at a weighted average dayrate of $453,000[5] Tax and Interest - The effective tax rate for the three months ended December 31, 2025, was 68.8%, with an adjusted effective tax rate of 72.3% excluding discrete items[40] - Interest expense for YTD December 31, 2025, was $515 million, up from $312 million in the same period of 2024[38] Cash Flow Analysis - Cash provided by operating activities for the year-to-date (YTD) reached $749 million, with a quarterly total (QTD) of $349 million[44] - Free Cash Flow YTD was $626 million, showing a significant increase compared to $321 million QTD[44] - Levered Free Cash Flow YTD was reported at $(438) million, indicating a decline from $(293) million QTD[44] - Capital expenditures YTD totaled $(123) million, with $(28) million spent in the latest quarter[44] - Cash provided by operating activities for the previous year-to-date (YTD) was $447 million, with a quarterly total (QTD) of $206 million[44] - Free Cash Flow for the previous YTD was $193 million, compared to $177 million QTD[44] - Levered Free Cash Flow for the previous YTD was $(162) million, with a positive $147 million in the latest quarter[44]

Employee Engagement and Culture - Allstate had approximately 53,000 full-time employees and 300 part-time employees as of December 31, 2025[102]. - Employee Impact Groups (EIGs) at Allstate showed a 15% lower turnover rate compared to non-members in 2025, with 28% of the U.S. workforce participating in at least one EIG[107]. - Allstate's organizational culture emphasizes values, expectations, and practices that drive decision-making and outcomes, aiming to become the lowest cost protection provider[101]. - The company invests in talent development and employee engagement, contributing to its overall success[102]. - Allstate conducts annual pay equity analyses to identify potential pay gaps and ensure fair compensation practices[106]. - Allstate's employee engagement results remain well above industry benchmarks, reflecting a strong sense of connection to the company's purpose[108]. - The company expanded its workplace well-being strategy, offering greater flexibility and personalized well-being assessments to lower benefit costs[109]. - Allstate's talent strategy focuses on skills-based hiring, eliminating degree requirements for non-essential roles, and prioritizing internal hiring[111]. - The company aims to enhance employee retention through various programs, including apprenticeship and internship initiatives designed to build skills[110]. - Allstate's culture of recognition is highlighted by over 1 million peer-to-peer recognitions in 2025, fostering a collaborative environment[109]. - The company continues to support work-life balance by providing paid family care leave to all employees from their first day[109]. Regulatory Compliance and Market Position - The California Insurance Commissioner issued a mandatory one-year moratorium on non-renewing or canceling residential insurance coverage in specific zip codes affected by wildfires in January 2025[83]. - Allstate is subject to state regulations that require participation in assigned risk plans and joint underwriting associations to provide coverage to individuals unable to purchase insurance from private insurers[84]. - The company is well-positioned to comply with California's new climate disclosure laws, with an initial reporting deadline set for August 2026[93]. - Allstate's insurance subsidiaries are subject to state regulations that specify investment types and concentration limits, with non-compliance leading to non-admitted asset treatment[90]. Business Strategy and Growth - Allstate's brand is well-recognized in the U.S., utilizing multiple brands and products to enhance its market presence[115]. - The company anticipates growth through strategic initiatives, including product development and market position enhancement[118]. - Allstate's executive team is led by experienced individuals, with Thomas J. Wilson serving as CEO since January 2007[117]. - The company emphasizes the importance of maintaining rights to its service marks and logos, which are crucial for its business operations[115].

Financial Performance - Five9's revenue for the years ended December 31, 2025, 2024, and 2023 was $1,149.1 million, $1,041.9 million, and $910.5 million, respectively, representing year-over-year growth of 10% and 14%[25]. - The company recorded net income (losses) of $39.4 million, $(12.8) million, and $(81.8) million for the years ended December 31, 2025, 2024, and 2023[25]. - As of December 31, 2025, Five9's total assets were $1,790.1 million, down from $2,051.2 million in 2024 and up from $1,494.6 million in 2023[25]. - The company incurred net losses of $39.4 million, $(12.8) million, and $(81.8) million for the years ended December 31, 2025, 2024, and 2023, with an accumulated deficit of $378.2 million as of December 31, 2025[98]. - Revenue for the years ended December 31, 2025, 2024, and 2023 was $1,149.1 million, $1,041.9 million, and $910.5 million, representing year-over-year growth of 10% and 14% respectively[99]. Customer Base and Retention - Five9 has over 3,000 customers, leveraging its AI-powered CX platform to improve customer experiences across various channels[16]. - As of December 31, 2025, the company has a diverse customer base of over 3,000 organizations, with no single customer accounting for more than 10% of revenues in 2025, 2024, or 2023[33]. - The Annual Dollar-Based Retention Rate was 105% as of December 31, 2025, enhancing the company's ability to forecast financial performance[25]. - In 2025, 51% of total revenues were generated in the second half of the year, attributed to increased activities in retail, healthcare, and education[53]. - Retaining existing customers is critical, as subscription terminations or reductions could significantly harm revenues and gross margins[110]. Business Model and Operations - The company operates a SaaS business model, generating subscription revenue primarily based on the number of licenses and usage-based telephony revenue[24]. - The company’s sales model includes both direct sales through field and telesales teams and indirect sales through a network of technology solution distributors and resellers[38]. - The company’s cloud platform is designed to be highly reliable, secure, and scalable, with operational control over critical elements of its voice infrastructure[41]. - The company continues to expand its international operations, which introduces significant macroeconomic risks[101]. - The company plans to invest in enhancing its solution through AI capabilities and expanding its partner ecosystem to drive future growth[100]. Research and Development - The company has invested significantly in research and development, with a core center in California and additional engineers in Australia, Portugal, and India, to enhance its Intelligent CX Platform[40]. - Research and development expenses totaled $152.3 million, $166.2 million, and $156.6 million for the years ended December 31, 2025, 2024, and 2023, respectively[144]. - The company emphasizes advancements in AI, particularly through its Genius AI suite, which enhances customer experience and operational efficiency[19]. - The development of AI-powered features is a key focus, but there are risks associated with achieving sufficient accuracy and market acceptance[134]. Employee Engagement and Diversity - The company employs 2,910 full-time employees as of December 31, 2025, with 43% in cost of revenue functions and 25% in research and development[54]. - The company’s employee engagement score was 72% in 2025, exceeding the Culture Amp benchmark by three percentage points, indicating strong team effectiveness and growth opportunities[63]. - Women represented 32% of the company's worldwide employees and racial and ethnic minorities represented 36% of U.S. employees as of December 31, 2025[66]. - The company emphasizes a total rewards system that includes competitive cash compensation and a holistic package addressing employee needs, such as healthcare benefits and retirement plans[70]. Regulatory and Compliance Risks - The company faces regulatory challenges, including compliance with the Telecommunications Act and various federal and state regulations that could impact operations[78]. - The company must adhere to numerous regulations, including the Telephone Consumer Protection Act and the California Consumer Privacy Act, which could affect operational costs and competitive positioning[80][81]. - The company is subject to international regulations, such as the GDPR in the EU, which imposes strict requirements on data processing and can result in significant fines for non-compliance[82]. - The company has implemented a layered information governance program to ensure compliance with evolving regulatory frameworks and protect customer data[83]. - Compliance with new robocall prevention regulations, including the STIR/SHAKEN framework, poses significant business risks and may affect customer relationships[210]. Market Competition and Challenges - The company faces intense competition from both large legacy technology vendors and smaller service providers, which could harm its operating results[124]. - Competitors are increasingly integrating AI technologies into their offerings, potentially leading to pricing pressures and reduced market share for the company[125]. - The company faces challenges in managing growth effectively, which could lead to operational difficulties and impact business performance[102]. - The company acknowledges risks related to adverse economic conditions, including inflation and high interest rates, which may impact revenue growth and customer retention[90]. Intellectual Property and Technology Risks - The company has approximately $747.5 million in principal outstanding under convertible senior notes issued in March 2024, maturing on March 15, 2029[176]. - The company may incur additional liabilities for taxes, fees, or surcharges if state and local taxing authorities challenge its tax positions[207]. - The company relies on third-party licensed software, including AI solutions, and any inability to maintain these licenses could harm its business[196]. - The company is subject to third-party intellectual property infringement claims, which could result in substantial damages and legal costs[191]. Future Outlook and Strategic Initiatives - The company plans to expand its international presence, particularly in India, with significant operations in the Philippines and Portugal[154]. - The company is increasing sales, marketing, and support personnel in the U.K. and the European Union, along with enlarging data centers in the U.K. and Amsterdam[159]. - The company plans to invest in acquiring government customers, which requires compliance with FedRAMP, a process that is costly and time-consuming[108]. - The company is increasing its network of technology solution distributors and resellers, but failure to manage these relationships effectively could harm revenues[118].

Sales Performance - In 2025, the company's net sales increased by 7.2% to $8,231.5 million compared to 2024, driven by the acquisition of Paragon 28, market growth, and new product introductions [175]. - The company expects net sales growth of 2.5% to 4.5% in 2026, with the Paragon 28 acquisition contributing an estimated 1.0% to this growth [177]. - In 2025, U.S. net sales grew by 7.3% to $4,764.0 million, with the Paragon 28 acquisition contributing 3.6% to this growth [180]. - International net sales increased by 7.0% to $3,467.5 million in 2025, with foreign currency exchange rates contributing 1.8% to this growth [185]. - The S.E.T. product category saw a significant increase in net sales by 15.2% in 2025, largely due to the Paragon 28 acquisition, which contributed 10.5% to this growth [186]. - Changes in volume and mix of product sales positively impacted year-over-year sales growth by 6.4% in 2025, with the Paragon 28 acquisition contributing 2.5% [182]. Earnings and Expenses - Net earnings for 2025 were $705.1 million, a decline from $903.8 million in 2024, primarily due to inventory charges of approximately $170 million and costs related to acquisitions [176]. - Cost of products sold as a percentage of net sales increased to 30.3% in 2025 from 28.5% in 2024, driven by inventory charges and tariffs [187]. - The company's gross margin decreased to 61.6% in 2025 from 63.8% in 2024, impacted by inventory charges and U.S. tariffs [190]. - Research and development expenses as a percentage of net sales slightly decreased to 5.6% in 2025 from 5.7% in 2024 [187]. - R&D expenses increased in amount but decreased as a percentage of net sales in 2025, driven by Paragon 28-related expenses and higher technology project spending, offset by lower EU Medical Device Regulation compliance costs [191]. - SG&A expenses increased in both amount and percentage of net sales in 2025, primarily due to variable selling and distribution costs, Paragon 28-related expenses, and higher performance-related compensation [192]. - The company recognized $181.2 million in restructuring expenses in 2025, down from $219.0 million in 2024, mainly due to lower costs associated with U.S. and Canada ERP implementation [193]. - Acquisition-related expenses increased in 2025, including $55.1 million for compensation related to Paragon 28 and Monogram acquisitions, partially offset by $77.1 million in net gains from declines in estimated fair values of contingent consideration [194]. Cash Flow and Financial Position - Cash flows from operating activities increased to $1,697.1 million in 2025 from $1,499.4 million in 2024, driven by higher net sales and favorable timing of accounts payable [208]. - Cash flows used in investing activities rose to $1,975.7 million in 2025, including $1,393.2 million for the acquisitions of Paragon 28 and Monogram [209]. - The company had $591.9 million in cash and cash equivalents as of December 31, 2025, with $1.0 billion available under a 364-day revolving credit agreement [206]. Tax and Restructuring - The effective tax rate increased to 15.1% in 2025 from 12.7% in 2024, influenced by foreign rate differentials and intercompany transactions [198]. - The company expects to reduce gross annual pre-tax operating expenses by approximately $175 million by the end of 2027 as part of its restructuring plans [218]. - Management recognized a charge of approximately $170 million to reduce inventory and instruments to their net realizable value due to reduced demand for certain products [225]. Contingent Consideration and Assets - As of December 31, 2025, the company recorded $299.2 million of contingent consideration related to completed business combinations, an increase from $180.7 million in 2024 [237]. - The company had net assets, excluding goodwill and intangible assets, in legal entities with non-U.S. Dollar functional currencies of $1,490.4 million at December 31, 2025 [244]. Risk Management - A sensitivity analysis indicated that a 10 percent change in foreign currency exchange rates could affect earnings by approximately $109 million to $107 million before income taxes [242]. - The majority of the company's debt is fixed-rate, and a 10 percent change in interest rates would not have a material effect on interest expense [250]. - The company is exposed to credit risk primarily from cash and cash equivalents, derivative instruments, and accounts receivable, but believes reserves for losses are adequate [251]. - Management evaluates deferred tax assets on an ongoing basis and provides valuation allowances unless it is "more likely than not" that the deferred tax benefit will be realized [227]. - During the annual goodwill impairment testing in Q4 2025, the estimated fair values of two reporting units exceeded their carrying values by more than 25 percent [232]. - The company enters into supply contracts for raw materials with terms of 12 to 24 months to mitigate commodity price risks [247]. - The company uses derivative financial instruments solely as risk management tools and not for speculative investment purposes [240].

Sales and Financial Performance - The company has successfully increased home sales prices to absorb rising costs associated with labor, commodities, and lumber, mitigating inflationary pressures experienced in recent years[46]. - The company expects to face cost pressures from inflation similar to those experienced in the last few years, which could impact future quarters[46]. - The company continues to monitor supply markets to achieve the best prices for raw materials and labor, which are critical to its operations[46]. Employment and Training - As of December 31, 2025, the company employed 1,056 people, with 622 in on-site sales and support roles and 342 involved in acquisition, development, purchasing, and construction[53]. - The company has implemented a structured 100-day training program for sales professionals, emphasizing ongoing training and development[55]. Community Engagement - The company has contributed over $4.0 million in corporate sponsorships and over 50,000 employee service hours to local communities since 2016[58]. Industry Competition - The homebuilding industry is highly competitive, with the company competing against numerous national, regional, and local homebuilders, as well as existing home sales and rental markets[51]. Environmental Regulations - The company is subject to various environmental regulations that may result in delays and increased costs, particularly in environmentally sensitive areas[48]. - The company has not incurred any material unanticipated liabilities related to environmental conditions or toxic waste removal[50]. Debt and Interest Rates - The company utilizes both fixed-rate and variable-rate debt for financing, with no obligation to prepay senior notes or fixed-rate inventory obligations prior to maturity[288]. - As of December 31, 2025, the company had $527.6 million of variable rate indebtedness outstanding under the Credit Agreement[290]. - The interest rate for the variable rate indebtedness was SOFR plus 1.85%, with SOFR at 3.72% as of December 31, 2025[290]. - A hypothetical 100 basis point increase in the average interest rate above the SOFR floor would increase annual interest costs by approximately $5.3 million[290]. - The company believes that future interest rate risks related to existing indebtedness will not have a material adverse impact on its financial position, results of operations, or liquidity[291].

Earnings Performance - Alliant Energy reported GAAP EPS of $3.14 for 2025, up from $2.69 in 2024, representing a growth of 16.7%[1] - Ongoing EPS for 2025 was $3.22, compared to $3.04 in 2024, reflecting a 6% increase[6] - Alliant Energy's consolidated GAAP EPS for 2025 was $3.14, up from $2.69 in 2024, while non-GAAP EPS increased to $3.22 from $3.04[26] - For the fourth quarter of 2025, Alliant Energy reported a GAAP EPS of $0.55, down from $0.58 in Q4 2024, while non-GAAP EPS was $0.60, compared to $0.70 in the same period last year[29] - Alliant Energy's utility and corporate services segment reported a non-GAAP EPS of $3.39 for 2025, compared to $3.12 in 2024[26] Revenue and Income - The total GAAP income for Alliant Energy in 2025 was $810 million, compared to $690 million in 2024, with non-GAAP income rising to $830 million from $781 million[26] - The total GAAP income for the fourth quarter of 2025 was $142 million, a decrease from $150 million in Q4 2024, with non-GAAP income at $154 million, down from $182 million[29] - Total revenues for Q4 2025 reached $1,064 million, a 9% increase from $976 million in Q4 2024[33] - Net income attributable to Alliant Energy common shareowners for the year ended December 31, 2025, was $810 million, up 17% from $690 million in 2024[33] - Operating income for the year ended December 31, 2025, was $1,025 million, compared to $886 million in 2024, reflecting a 16% increase[33] Capital Expenditures and Investments - Projected total capital expenditures for 2026 are estimated at $3,130 million, with significant investments in renewables and energy storage projects totaling $1,055 million[9] - Key drivers for the 2025 results included increased revenue from authorized rate base increases and capital investments in generation and energy storage[3] Customer Base and Service - Alliant Energy serves approximately 1,010,000 electric and 435,000 natural gas customers across the Midwest[13] - Utility retail electric customers reached 1,009,387 as of December 31, 2025, an increase from 1,002,967 in 2024[39] - Utility retail gas customers totaled 433,344 at the end of 2025, up from 430,699 in 2024[39] Financial Position and Debt - Total assets increased to $24,991 million in 2025, up from $22,714 million in 2024, representing a growth of 10%[35] - Long-term debt, net (excluding current portion) rose to $10,954 million in 2025, compared to $8,677 million in 2024, indicating a 26% increase[35] Dividends and Shareholder Value - The quarterly common dividend rate per share increased to $0.5075 in 2025 from $0.48 in 2024[39] - Alliant Energy's ability to sustain its dividend payout ratio goal remains a focus amid changing economic conditions and regulatory environments[26] - Book value per share improved to $28.52 in 2025, compared to $27.29 in 2024, reflecting a growth of 4.5%[39] Operational Challenges - Higher operational expenses in 2025 were driven by increased generation costs and maintenance activities, partially offsetting earnings growth[3] - The company faced restructuring and voluntary employee separation charges impacting both GAAP and non-GAAP earnings in 2025[30] - Adjustments for non-GAAP earnings in 2025 included a $20 million impact from various charges, while 2024 adjustments totaled $91 million[27] Future Outlook - The company affirmed its ongoing EPS guidance for 2026 in the range of $3.36 to $3.46[2] - The company anticipates future tax benefits from Iowa rate-making practices, which may affect earnings guidance for 2026[19] - The company is focused on meeting growing customer demand through strategic investments and a balanced generation portfolio[3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________ FORM 10-K ____________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 Delaware 06-1500476 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No.: 001-16753 AMN HEALTHCARE SERVICES, INC. (Exact Name of Registrant as Specified i ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K x 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 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-39142 PORCH GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 84-2587663 (State or other jurisdiction of incorporation or organizatio ...

Financial Performance - Fourth quarter 2025 revenue was $202.2 million, with a net income of $2.1 million or $0.17 per diluted share[1] - Full year 2025 revenue totaled $791.5 million, a decrease from $816.4 million in 2024[17] - The company reported a net loss of $9,660,000 for the year ended December 31, 2025, significantly improved from a net loss of $135,326,000 in 2024[21] - Total revenue for the year ended December 31, 2025, was $791,474,000, a decrease from $816,425,000 in 2024, reflecting a decline of about 3%[44] - The company reported a net loss of $9,660 for the year ended December 31, 2025, compared to a net loss of $135,326 in 2024[36] EBITDA and Cash Flow - The company achieved an adjusted EBITDA of $23 million for Q4 2025, with full year adjusted EBITDA guidance of $90 - $110 million, representing a 16% increase[2] - Total EBITDA for the year ended December 31, 2025, was $68,654,000, compared to a loss of $43,219,000 in 2024, showing a significant recovery in operational performance[25] - Free cash flow for the full year 2025 was $80 million, with a 65% free cash flow conversion rate[3] - Free cash flow before acquisitions for the year ended December 31, 2025, was $79,968,000, down from $105,073,000 in 2024, representing a decrease of approximately 24%[40] - The free cash flow yield as of February 18, 2026, was 11%, calculated using a market capitalization of $65 million[40] Orders and Backlog - Orders for the year reached $891 million, resulting in a book-to-bill ratio of 113%[2] - The backlog as of the end of 2025 was $312 million, the highest in 11 years and 46% greater than the previous year[1] - Total orders for the three months ended December 31, 2025, were $187,197,000, slightly down from $189,955,000 in the same period of 2024[27] - The book-to-bill ratio for total orders was 0.93 for the three months ended December 31, 2025, indicating a slight decline in demand compared to 0.94 in the previous year[27] Segment Performance - Drilling and Completions revenue increased by 8% to $127 million, driven by strong demand for drilling-related capital equipment[4] - Artificial Lift and Downhole revenue decreased by 4% to $75 million, with a book-to-bill ratio of 107% due to large orders for production-related equipment[5] - The operating income for the Drilling and Completions segment was $12,835,000 for 2025, down from $17,766,000 in 2024, reflecting a decrease in operating margin from 3.8% to 2.7%[25] - The operating margin for the Artificial Lift and Downhole segment was 13.1% for the year ended December 31, 2025, slightly down from 14.1% in 2024[25] - Revenue from the Drilling and Completions segment for the three months ended December 31, 2025, was $126,916,000, accounting for 62.8% of total revenue[48] Market Outlook - The company expects revenue and EBITDA growth in 2026, supported by strong backlog and market share gains, despite a relatively flat global market activity outlook[4] - Average global rig count for 2025 was 1,818, down from 1,948 in 2024, indicating a reduction of approximately 6.7%[44] - Revenue per rig increased to $435 in 2025 from $419 in 2024, marking an increase of about 3.8%[44] Other Financial Metrics - Net cash provided by operating activities for the year ended December 31, 2025, was $70,402,000, compared to $92,191,000 in 2024, a decrease of approximately 23.6%[21] - The net leverage ratio as of December 31, 2025, was 1.2, indicating the company's ability to meet its financial obligations[42] - The adjusted operating income for the year ended December 31, 2025, was $43,727, which is 5.5% of revenue[32] - The company incurred restructuring and other costs of $633 for the three months ended December 31, 2025[29] - The diluted EPS as reported for the three months ended December 31, 2025, was $0.17, while the adjusted diluted EPS was $0.41[29]

Revenue Sources and Financial Performance - Approximately 24% of total revenue for the year ended December 31, 2025, was derived from the Medicare program through CMS[139]. - Revenue from non-contracted third-party commercial payors accounted for approximately 7% of total revenue for the year ended December 31, 2025, leading to limited visibility on payment timelines[247]. - The company has a history of operating losses and may not achieve or sustain profitability in the future[248]. - The company incurred net losses of $44.6 million and $113.3 million for the years ended December 31, 2025 and 2024, respectively, with an accumulated deficit of $803.4 million as of December 31, 2025[249]. - The company’s revenue and operating results may fluctuate significantly from quarter to quarter, influenced by factors such as seasonal variations in prescription rates[245]. Regulatory Compliance and Risks - The company faces risks related to compliance with Medicare regulations, which could result in penalties or loss of reimbursement if not adhered to[140]. - The evolving regulatory landscape may increase the risk of questions regarding the appropriateness of CPT codes used for billing[150]. - The billing process for iRhythm Services is complex and highly regulated, requiring substantial time and resources, with potential penalties for non-compliance impacting business operations[156]. - The company must navigate extensive compliance requirements for its medical devices, with non-compliance potentially leading to significant enforcement actions and financial impacts[172]. - The company is facing increased scrutiny regarding compliance with healthcare laws, which could lead to legal expenses and management distraction[221]. Competition and Market Dynamics - The market for remote cardiac monitoring solutions is highly competitive, with significant competition from both large manufacturers and smaller regional service providers[153]. - The company competes with large medical device companies and tech firms entering the digital health space, which could impact market share[155]. - The competitive landscape for medical devices is dynamic, and failure to innovate could lead to obsolescence of the company's services and decline in revenue[195]. - The company emphasizes the need for continuous development of new product offerings and enhancements to its iRhythm Services to remain competitive[196]. Research and Development - The company is in various stages of research and development for new diagnostic solutions, but there is no assurance of successful commercialization[152]. - The company has faced challenges in maintaining adequate research and development resources, which are essential for competitive positioning in the market[196]. - The company is focused on proactive monitoring of undiagnosed arrhythmias, but there are risks that the clinical community may not adopt the necessary screening criteria[210]. - The company may pursue acquisitions of complementary companies or technologies, but there is no guarantee that these will result in commercially viable products or significant future revenues[211]. Supply Chain and Operational Risks - The company relies heavily on iRhythm Services for revenue, which is expected to account for substantially all revenue for the foreseeable future[152]. - The company relies on third-party vendors for critical components of the iRhythm ACM Systems, exposing it to risks related to supply chain disruptions[188]. - The company may experience production delays due to reliance on single suppliers for key components, which could impair its ability to meet demand for iRhythm Services[189]. - The company faces risks related to manufacturing an adequate supply of iRhythm ACM Systems to meet demand and maintain quality[250]. Cybersecurity and Data Protection - Cybersecurity risks, including data breaches and service interruptions, could compromise confidential data and lead to significant remediation costs and reputational damage[280]. - A recent cybersecurity incident involving a third-party vendor caused a temporary delay in billing, impacting cash collections[281]. - The evolving nature of cyber threats may require the company to allocate significant resources to enhance protective measures and address vulnerabilities[284]. - Compliance with various cybersecurity regulations is critical, as failure to meet these standards could lead to enforcement actions, product recalls, or operational disruptions[287]. Financial Management and Capital Structure - The company may require additional capital to support growth, which might not be available on acceptable terms, potentially leading to dilution for stockholders[251]. - The company is exposed to risks related to its increased debt, which may adversely affect its financial health and operational flexibility[305]. - Servicing the company's debt requires significant cash flow, which may not be sufficient in the future to meet its obligations[307]. - The conversion of the 2029 Notes may dilute existing stockholders' ownership interests and potentially depress stock prices[313]. International Expansion and Regulatory Compliance - International expansion efforts are focused on markets such as the Philippines, the EU, the UK, Switzerland, and Japan, but these efforts expose the company to various operational and regulatory risks[200]. - The company faces significant risks associated with compliance with multiple international regulations, including the UK MDR and EU AI Act, which could impact its operations and market access[207]. Legal and Intellectual Property Risks - The company faces risks related to intellectual property infringement claims, which could lead to significant costs and operational disruptions[266]. - Numerous patents issued to third parties may relate to the company's iRhythm ACM Systems, increasing the risk of infringement claims as competition in the remote cardiac monitoring market grows[267]. - If found to infringe on patents, the company could incur substantial damages, including potential treble damages for willful infringement, which could adversely affect financial conditions[271]. Future Outlook and Strategic Initiatives - The company is exploring opportunities to expand into the sleep apnea screening and diagnostics market, which requires significant investment and carries unique regulatory requirements[215]. - The company anticipates that new products developed from BioIS's technologies will require validation and regulatory approval, impacting commercialization timelines[214]. - The company does not expect meaningful revenue from sleep apnea opportunities in the near future, risking competitive threats if competitors act more quickly[215].