Financial Performance - The company's net sales for Q1 2025 decreased by 14% to $115,800, down from $135,143 in Q1 2024[69] - Gross profit for Q1 2025 was $30,191, a decline of 29% compared to $42,418 in Q1 2024, resulting in a gross margin of 26%[72] - The company recorded a net loss of $8,462, or $0.30 per share, compared to a net income of $1,552, or $0.06 per share, in the prior year[78] - Total cost of sales decreased by 8% to $85,609 in Q1 2025, primarily driven by a decline in sales volume[69] - Net loss for Q1 2025 was $8,462 or $0.30 per share, compared to net income of $1,552 or $0.06 per share in Q1 2024[78] Sales and Revenue - Domestic crop sales fell by 15% to $57,176, while international sales also decreased by 14% to $43,023[69] - In Q1 2025, the Company reported net sales of $115,800, a decrease of 14% compared to $135,143 in Q1 2024[69] Expenses - Operating expenses decreased by 5% to $34,501, with selling expenses down 17% to $10,723[73][76] - Interest expense remained flat at $3,765, with an average debt of $183,918 and an effective interest rate of 8.2%[74] - The income tax expense for Q1 2025 was $387, significantly lower than $1,484 in Q1 2024, due to losses incurred in the U.S.[68][75] - Selling expenses decreased by $2,158 in Q1 2025, driven by reductions in domestic wages, travel expenses, and advertising costs[76] Cash Flow - Cash used in operating activities was $20,576, compared to $36,107 in the same period last year[79] - Cash used for investing activities was $446 in Q1 2025, significantly lower than $3,567 in Q1 2024, with $431 spent on fixed asset acquisitions[82] - Financing activities provided $19,801 in Q1 2025, down from $41,382 in the same period last year, with net borrowings under the Credit Agreement amounting to $20,167[83] Debt and Indebtedness - Long-term indebtedness increased to $166,272 as of March 31, 2025, from $145,800 at the end of 2024[84] - Average overall debt increased to $183,918 in Q1 2025 from $176,344 in Q1 2024, with interest expense remaining flat at $3,765 compared to $3,693[74] - The Company had the capacity to increase borrowings by up to $53,717 as of March 31, 2025, compared to $28,623 available as of December 31, 2024[85] Transformation and Strategy - The company plans to focus on selling more profitable products internationally, leading to improved average pricing across categories[71] - Transformation costs related to digital and structural initiatives amounted to $2,191, up from $1,152 in the prior period[76] - Transformation costs related to digital and structural transformation amounted to $2,191 in Q1 2025, up from $1,152 in the prior period[76] Working Capital - Customer prepayments decreased by $28,215 in Q1 2025, compared to a decrease of $37,037 in the same period of 2024[80] - Net working capital increased by $18,240 in Q1 2025, compared to an increase of $49,996 in the same period of the prior year[80]

Revenue and Financial Performance - Cycurion's revenues from SLG for the fiscal years 2024 and 2023 were $14,703,887 and $13,837,042, respectively, indicating a year-over-year increase of approximately 6.3%[267]. - Revenue for the three months ended March 31, 2025, was $3,870,050, a decrease of $372,805 or 8.79% compared to $4,242,855 in the same period of 2024[283]. - Cost of revenue decreased by $703,854 or 18.07% to $3,192,287 for the three months ended March 31, 2025, from $3,896,141 in 2024[286]. - Selling, general and administrative expenses surged to $10,775,268 for the three months ended March 31, 2025, reflecting an increase of $10,396,291 or 2743.25% compared to $378,977 in 2024, attributed to merger and acquisition efforts[288]. - Net cash used in operating activities was $2,745,109 for the three months ended March 31, 2025, compared to $272,446 in the same period of 2024[291]. - Cash and cash equivalents at the end of the period increased to $2,269,195 as of March 31, 2025, up from $206,939 at the end of March 2024[291]. - The accumulated deficit increased to approximately $13,461,859 as of March 31, 2025, compared to $3,203,361 at December 31, 2024[297]. - The company expects continued significant operating losses for the next few years, with unrestricted cash of approximately $2.3 million as of March 31, 2025[298]. - The total assets increased to approximately $31.6 million as of March 31, 2025, from approximately $25.6 million at December 31, 2024, primarily due to increases in goodwill[298]. Strategic Acquisitions and Growth - The acquisition of Sabres' technology assets, including Multi-Dimensional Protection, Web Application Firewall, and Bot Mitigation SaaS platforms, was completed on September 30, 2021, enhancing Cycurion's service offerings[277]. - Cycurion plans to close the transactions contemplated by the SLG Term Sheet during the current fiscal quarter, which would allow the company to leverage SLG's historical relationships with government agencies for future contracts[269]. - The SLG Innovation subsidiary now represents a majority of Cycurion's revenues, highlighting the importance of this acquisition in driving growth[266]. - Cycurion's growth strategy includes organic business solutions and strategic acquisitions of cyber/infrastructure service providers, positioning the company for continued expansion in the cybersecurity market[257]. - The SLG Term Sheet allows for the potential acquisition of SLG, which would provide Cycurion with valuable past performance qualifications for bidding on new government contracts[267]. - The RCR Term Sheet, related to the acquisition of SLG's accounts receivable, is expected to be closed in the second half of the current fiscal year, contingent upon the SLG transaction[273]. - Cycurion's subsidiaries, including Axxum Technologies and Cloudburst Security, have established a strong presence in federal government contracts, contributing to the company's revenue growth[259][261]. Technology and Innovation - The Cycurion Security Platform utilizes a proprietary cloud-based AI algorithm that evolves to counter new threats, enhancing the effectiveness of its cybersecurity solutions[278]. - The integration of Sabres' SaaS platforms into Cycurion's offerings aims to improve clients' cyber posture and reduce risks associated with cyber threats[278]. Financing and Market Considerations - The company intends to continue seeking additional debt or equity financing to support operations until it can generate sufficient cash flow[299]. - The fair value of the Common Stock was estimated due to its lack of historical public trading[316]. - The expected term for options is calculated to be 10 years based on the average vesting term and contractual period[316]. - Expected volatility is derived from the historical share volatility of comparable publicly traded companies[316]. - The risk-free interest rate is based on U.S. Treasury securities yields appropriate for the term of the award[316]. - The company has not paid dividends on its Common Stock and does not expect to in the foreseeable future[316]. - The assessment includes contemporaneous third-party valuations of the Common Stock[316]. - The analysis considers the likelihood of achieving a liquidity event, such as an IPO or sale of the company[316]. - Market performance of comparable publicly traded companies is taken into account[316]. - The company is classified as a "smaller reporting company" and is not required to provide additional market risk disclosures[317].

Financial Performance - Revenues from SLG for the fiscal years 2024 and 2023 were $14,703,887 and $13,837,042, respectively, indicating a year-over-year growth of approximately 6.3%[267] - Revenue for the three months ended March 31, 2025, was $3,870,050, a decrease of $372,805 or 8.79% compared to $4,242,855 in the same period of 2024[283] - Cost of revenue decreased by $703,854 or 18.07% to $3,192,287 for the three months ended March 31, 2025, from $3,896,141 in 2024[286] - Selling, general and administrative expenses increased significantly by $10,396,291 or 2743.25% to $10,775,268 for the three months ended March 31, 2025, compared to $378,977 in 2024[288] - Net loss for the three months ended March 31, 2025, was $10,248,486, compared to a net loss of $312,475 in the same period of 2024[282] - Cash and cash equivalents at the end of the period increased to $2,269,195 as of March 31, 2025, from $206,939 at the end of March 2024[291] - The accumulated deficit increased to approximately $13,461,859 as of March 31, 2025, from $3,203,361 at December 31, 2024[297] - Net cash used in operating activities was $2,745,109 for the three months ended March 31, 2025, compared to $272,446 in the same period of 2024[292] - Net cash provided by financing activities was $3,173,991 for the three months ended March 31, 2025, compared to a net cash used of $23,483 in 2024[296] - The company expects continued significant operating losses for the next few years and plans to seek additional financing[298] - The total assets increased to approximately $31.6 million as of March 31, 2025, from approximately $25.6 million at December 31, 2024, primarily due to increases in goodwill[298] Acquisition and Strategic Plans - The acquisition of SLG is expected to enhance Cycurion's qualifications for future government contracts due to SLG's historical relationships with contracting agencies[267] - Cycurion entered into a Term Sheet with SLG on April 25, 2023, for the acquisition, which includes provisions for forming two new subsidiaries[268] - The SLG Term Sheet allows Cycurion to terminate the agreement at any time before April 11, 2025, without further obligations[269] - Cycurion plans to close the transactions contemplated by the SLG Term Sheet during the current fiscal quarter[269] - The RCR Term Sheet, related to SLG, is expected to be closed in the second half of the current fiscal year, contingent upon the SLG transaction[273] - Cycurion's growth strategy includes organic business solutions and strategic acquisitions of cyber/infrastructure service providers[257] Technology and Services - Cycurion acquired technology assets from Sabres, including Multi-Dimensional Protection and Bot Mitigation SaaS platforms, which were integrated into existing services[277] - The Cycurion Security Platform utilizes a proprietary cloud-based AI algorithm to enhance cybersecurity measures in real-time against emerging threats[278] - The MDP SaaS platform combines Web Application Firewall and Bot Mitigation to improve clients' cyber posture and reduce risks from automated attacks[278] Stock and Market Considerations - The fair value of the Common Stock was estimated due to its lack of historical public trading[316] - The expected term for options is calculated to be 10 years based on the average vesting term and contractual period[316] - Expected volatility is derived from the historical share volatility of comparable publicly traded companies[316] - The risk-free interest rate is based on U.S. Treasury securities yields appropriate for the term of the award[316] - The company has not paid dividends on its Common Stock and does not expect to in the foreseeable future[316] - The assessment includes contemporaneous third-party valuations of the Common Stock[316] - The analysis considers the likelihood of achieving a liquidity event, such as an IPO or sale of the company[316] - Market performance of comparable publicly traded companies is taken into account[316] - The company is classified as a "smaller reporting company" and is not required to provide additional market risk disclosures[317]

Revenue and Performance - Total revenue for the three months ended April 30, 2024 and 2025 was $80.1 million, remaining relatively flat year-over-year [161]. - Total revenue for the three months ended April 30, 2025, was $80,111 thousand, a slight increase of $8 thousand compared to $80,103 thousand in the same period of 2024 [189]. - Remaining performance obligations (RPO) increased from $346.3 million in 2024 to $427.5 million in 2025, with $241.0 million expected to be recognized as revenue in the next twelve months [160]. - Subscription revenue decreased by $721 thousand, or 1%, from $72,110 thousand in 2024 to $71,389 thousand in 2025, primarily due to a $4.3 million net decrease from existing customers [193]. - Professional services and other revenue increased by $729 thousand, or 9%, from $7,993 thousand in 2024 to $8,722 thousand in 2025, driven by increases in event sponsorship and consulting revenue [194]. Customer and Market Dynamics - As of April 30, 2025, 70% of annual recurring revenue (ARR) was derived from consumption-based service agreements, with expectations for this percentage to increase [158]. - The company had over 2,500 customers as of April 30, 2025, with enterprise customers accounting for 45% of revenue [167]. - The macroeconomic environment has elongated the software sales cycle and increased deal scrutiny, potentially impacting revenue growth in the near term [162]. Financial Performance - Net losses were $26.0 million for the three months ended April 30, 2024, and $18.1 million for the same period in 2025, with an accumulated deficit of $1.5056 billion as of April 30, 2025 [163]. - Net loss for the three months ended April 30, 2025, was $18,052 thousand, compared to a net loss of $26,007 thousand in 2024, reflecting an improvement of $7,955 thousand [189]. - Cash collected from customers during the three months ended April 30, 2025 was $93.2 million, exceeding cash outflows of $89.2 million [217]. - Net cash provided by operating activities for the three months ended April 30, 2025 was $3.951 million, compared to $1.901 million for the same period in 2024 [214]. Expenses and Cost Management - Total operating expenses decreased by $7,050 thousand, or 9%, from $80,839 thousand in 2024 to $73,789 thousand in 2025, with significant reductions in sales and marketing, research and development, and general and administrative expenses [199]. - Sales and marketing expenses as a percentage of total revenue increased from 50% in 2024 to 53% in 2025 [174]. - Research and development expenses as a percentage of total revenue increased from 25% in 2025 to 28% in 2024, indicating a focus on future growth [176]. - Research and development expenses decreased by $2,758 thousand, or 12%, from $22,719 thousand in 2024 to $19,961 thousand in 2025, with a decrease in employee-related costs [200]. - General and administrative expenses decreased by $1,734 thousand, or 11%, from $15,901 thousand in 2024 to $14,167 thousand in 2025, primarily due to a reduction in professional and legal fees [201]. Liquidity and Financing - Cash and cash equivalents as of April 30, 2025, totaled $47.2 million, held primarily for working capital purposes [204]. - The company has a $125.3 million credit facility, all of which had been drawn as of April 30, 2025 [204]. - The company is required to maintain a minimum liquidity of $25.0 million in unrestricted cash as per the credit facility [213]. - As of April 30, 2025, the cash interest rate on the term loan was approximately 7.3%, with an additional fixed rate of 5.0% accruing on the outstanding principal [212]. Economic and Inflation Considerations - The company does not believe inflation has materially affected its business or financial condition to date [232]. - Subscription contracts often contain pricing terms tied to the Consumer Price Index (CPI), and renewal pricing policies are designed to approximate CPI changes [232]. - If costs become subject to significant inflationary pressure, the company may not be able to fully offset these costs with price increases, which could adversely affect its financial condition [232]. - A hypothetical change in interest rates of 100 basis points would not have a material impact on the fair value of the company's outstanding debt [229]. Strategic Initiatives - The company entered into a Controlled Equity Offering Sales Agreement to sell up to $150.0 million of Class B common stock, with a commission of 3.0% on gross proceeds [208]. - The company has no current agreements for potential investments or acquisitions but may seek additional equity financing in the future [208]. - The company has experienced fluctuations in net loss due to transaction gains or losses from remeasuring current asset and liability balances in foreign currencies [231]. - The company has not engaged in hedging foreign currency transactions to date but is considering the costs and benefits of initiating such a program as it expands international operations [231].

Revenue and Growth - Revenue for the three months ended April 30, 2025, was $162.1 million, representing a year-over-year growth of 19.6% from $135.5 million in the same period of 2024[129] - Revenue for the three months ended April 30, 2025, was $162.1 million, a 19.6% increase from $135.5 million in the same period of 2024, primarily driven by a $24.8 million increase in subscription revenue[162] - Total customers grew to 2,342 as of April 30, 2025, from 2,102 as of April 30, 2024, indicating a strong customer acquisition strategy[162] - As of April 30, 2025, the company had 2,342 customers, with a dollar-based net retention rate of 109% for the trailing 12 months[137] - Approximately 46% of revenue for the three months ended April 30, 2025, was generated outside of the United States, compared to 44% in the same period of 2024[139] Financial Performance - Net losses for the three months ended April 30, 2025, were $35.6 million, compared to $35.7 million in the same period of 2024[129] - The company incurred a net loss of $35.6 million for the three months ended April 30, 2025, compared to a net loss of $35.7 million in the same period of 2024[160] - Gross profit increased by $20.3 million, or 22.3%, to $111.2 million, with a gross margin improvement to 68.6% from 67.1%[164] - Operating cash flow for the three months ended April 30, 2025, was $24.1 million, up from $19.4 million in the prior year[172] - Other income, net, increased by $0.5 million, or 9.3%, to $5.7 million, driven by higher investment income from marketable securities[168] Cash Flow and Liquidity - Non-GAAP free cash flow was $22.9 million for the three months ended April 30, 2025, up from $11.4 million in the same period of 2024[129] - Free cash flow for the three months ended April 30, 2025, was $22.9 million, an increase from $11.4 million for the same period in 2024, driven by higher collections from new contracts and renewals[180] - As of April 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $539.8 million, with $307.8 million invested in government and corporate debt securities[191] - The company assesses liquidity primarily through cash on hand and projected timing of billings under contracts, believing current resources will meet requirements for at least the next 12 months[181] Expenses and Investments - Operating expenses are expected to increase as the company expands its operations and invests in sales and marketing to drive growth[152] - Research and development expenses rose by $2.4 million, or 7.1%, to $36.8 million, reflecting continued investment in platform enhancements[166] - General and administrative expenses surged by $13.7 million, or 51.2%, to $40.5 million, largely due to increased professional services and legal costs related to acquisitions[167] - The cost of revenue increased by $6.3 million, or 14.2%, to $50.9 million, primarily due to higher hosting and messaging fees[163] Future Outlook - The company plans to continue investing in research and development to enhance its platform and expand its channel offerings, particularly in artificial intelligence capabilities[140] - The company expects free cash flow to fluctuate in future periods due to changes in operating expenses and macroeconomic factors affecting collection efforts[180] Customer Retention and Turnover - The decline in the dollar-based net retention rate from 117% to 109% was attributed to customer turnover and renewals at lower subscription levels due to macroeconomic conditions[138] - The company employs a land-and-expand business model, which allows for growth as customers increase their usage of the platform[128] Foreign Currency and Risk Management - The company does not currently face significant foreign currency risk as most sales are denominated in U.S. dollars, with only sales in Japan denominated in Yen[193] - The company uses derivative financial instruments, primarily forward exchange contracts, to hedge against foreign currency exchange rate fluctuations[194] Seasonality - The company experienced seasonality in cost of revenue, with the highest increase in messaging volume typically occurring in the fourth quarter due to holiday season activity[185]

Store Operations - As of May 3, 2025, the company operated 1,826 stores across 44 states[81]. - The company emphasizes the importance of opening new stores as a significant part of its growth strategy[92]. - The company plans to make cash capital expenditures of approximately $210 million to $230 million in fiscal 2025, primarily for new store openings[114]. Sales Performance - The company reported that net sales are typically highest in the fourth fiscal quarter due to the year-end holiday season[86]. - Net sales increased to $970.5 million for the thirteen weeks ended May 3, 2025, up 19.5% from $811.9 million in the prior year[105]. - Comparable sales rose by 7.1%, driven by a 6.2% increase in the number of transactions and a 0.9% increase in the average dollar value of transactions[106]. - E-commerce sales are included in net sales and comparable sales, reflecting the company's strategy to enhance online presence[82]. - The company acknowledges that its business is seasonal, impacting net sales fluctuations throughout the fiscal year[86]. Cost and Profitability - Gross profit is calculated as net sales minus cost of goods sold, with gross margin being gross profit as a percentage of net sales[95]. - Cost of goods sold increased to $646.6 million, a rise of 17.9% from $548.3 million, primarily due to higher merchandise costs associated with increased net sales[107]. - Gross profit increased to $323.9 million, up 22.9% from $263.5 million, with gross margin improving to 33.4% from 32.5%[108]. - Selling, general and administrative expenses rose to $273.1 million, an increase of 20.1% from $227.4 million, representing 28.1% of net sales[109]. - Operating income is defined as gross profit minus SG&A expenses, serving as an indicator of business productivity[100]. Financial Health - Net income increased to $41.1 million, a 30.8% rise from $31.5 million in the prior year[112]. - Cash provided by operating activities was $132.7 million, an increase of $106.3 million compared to the previous year[121]. - As of May 3, 2025, the company had approximately $225 million available on its Revolving Credit Facility[135]. - The Board of Directors approved a new share repurchase program for up to $100 million of common stock through November 27, 2026[117]. Risks and Challenges - The company faces risks including inflation, supply chain disruptions, and increased competition from other retailers[78]. - SG&A expenses are expected to increase in future periods due to ongoing store growth and variability in performance-based compensation[99].

Revenue Performance - Total revenue for the three months ended April 30, 2025, was $93.96 million, a decrease of 12.2% from $107.06 million for the same period in 2024[98]. - Revenue from the U.S. Concrete Pumping segment decreased by 16.8%, or $12.5 million, from $74.6 million in Q2 2024 to $62.1 million in Q2 2025, primarily due to a slowdown in commercial construction and adverse weather[99]. - Revenue for the U.S. Concrete Waste Management Services segment increased by 6.9%, or $1.2 million, from $16.9 million in Q2 2024 to $18.1 million in Q2 2025, driven by organic growth and pricing improvements[100]. - Total revenue for the six months ended April 30, 2025, was $180.4 million, down 11.9% from $204.8 million for the same period in 2024[109]. - Revenue from the U.S. Concrete Pumping segment for the six months ended April 30, 2025, decreased by 15.8%, or $22.3 million, from $141.3 million in 2024 to $119.0 million in 2025[110]. - Revenue for the U.K. Operations segment decreased by 14.0%, or $4.3 million, from $30.9 million in the six months ended April 30, 2024, to $26.6 million in 2025[112]. Profitability Metrics - Gross profit for the three months ended April 30, 2025, was $36.18 million, down 13.4% from $41.77 million in the same period in 2024[102]. - Gross profit for the six months ended April 30, 2025 was $67.4 million, a decrease of $7.7 million (10.2%) from $75.1 million in the same period of 2024[113]. - Gross margin improved to 37.4% for the six months ended April 30, 2025, compared to 36.7% for the same period in 2024, primarily due to lower fuel and commercial insurance costs[113]. - Adjusted EBITDA for the U.S. Concrete Pumping segment was $21.8 million for the six months ended April 30, 2025, down $7.3 million (25.0%) from $29.1 million in 2024[125]. - Total adjusted EBITDA for the company was $46.8 million for the six months ended April 30, 2025, a decrease of $7.3 million (15.6%) from $39.5 million in 2024[125]. - Adjusted EBITDA for the three months ended April 30, 2025, was $22,497,000, down 18.2% from $27,548,000 in the prior year[152]. Expenses and Financial Costs - General and administrative expenses for Q2 2025 were $27.9 million, a decrease of $1.8 million from $29.7 million in Q2 2024, with G&A as a percentage of revenue increasing to 29.7%[103]. - Interest expense for Q2 2025 was $8.3 million, an increase of $1.4 million from $6.9 million in Q2 2024, primarily due to refinancing of senior notes[105]. - General and administrative (G&A) expenses decreased by $5.9 million to $55.7 million for the six months ended April 30, 2025, representing 30.9% of revenue, up from 30.1% in 2024[114]. - Interest expense for the six months ended April 30, 2025 was $14.1 million, an increase of $0.8 million from $13.3 million in the same period of 2024, mainly due to refinancing of senior notes[116]. - Total interest expense and amortization of deferred financing costs for the six months ended April 30, 2025, was $14,096,000, an increase from $13,336,000 in the prior year[152]. Net Income and Loss - Consolidated net income for the three months ended April 30, 2025, was a loss of $4,000 compared to a net income of $3,046,000 for the same period in 2024[152]. - Net loss for the U.S. Concrete Pumping segment was $4.7 million for the six months ended April 30, 2025, compared to a net loss of $2.3 million in the same period of 2024[125]. - U.S. Concrete Waste Management Services segment reported net income of $1.4 million for the six months ended April 30, 2025, compared to a net loss of $0.2 million in 2024[126]. - U.K. Operations segment net income decreased to $0.6 million for the six months ended April 30, 2025, down from $1.5 million in 2024[127]. - U.S. Concrete Pumping segment reported a net loss of $1,601,000 for the three months ended April 30, 2025, compared to a net income of $937,000 in the same period of 2024[152]. - U.S. Concrete Waste Management Services achieved a net income of $1,202,000 for the three months ended April 30, 2025, up from $1,065,000 in the prior year[152]. Cash Flow and Liquidity - As of April 30, 2025, the company had $37.8 million in cash and cash equivalents and $314.7 million in available borrowing capacity under the ABL Facility, totaling $352.5 million in liquidity[129]. - Net cash provided by operating activities for the six months ended April 30, 2025 was $30.8 million, despite a net loss of $2.6 million[143]. - Gross capital expenditures for the six months ended April 30, 2025 were approximately $19.5 million, down from $28.8 million in the same period of 2024[133]. - The company used $16.3 million for investing activities during the six months ended April 30, 2025, primarily for property, plant, and equipment[145]. - Net cash used in financing activities was $19.9 million for the six months ended April 30, 2025, which included $425.0 million from the issuance of 2032 Notes and $375.0 million for the extinguishment of 2026 Notes[147]. - The company had a working capital surplus of $45.7 million as of April 30, 2025, and is in compliance with its debt covenants[132]. Strategic Initiatives - The company views strategic acquisitions as opportunities to enhance competitiveness and plans to allocate capital for opportunistic M&A using cash and revolving credit[90]. - The ABL Facility was amended to increase maximum borrowings from $225.0 million to $350.0 million and extend its maturity to September 6, 2029[138]. - The company had no outstanding balance under the ABL Facility as of April 30, 2025, and maintained $1.1 million in credit line reserves[139]. - The company’s future capital requirements may vary significantly based on revenue growth, potential acquisitions, and overall economic conditions[130]. Other Financial Adjustments - The company incurred a loss on debt extinguishment of $1,392,000 for the six months ended April 30, 2025[152]. - Other adjustments for the six months ended April 30, 2025, included a non-recurring charge related to sales tax litigation amounting to $3.5 million[152]. - The company did not make modifications to its critical accounting policies and estimates during the six months ended April 30, 2025[154].

Financial Performance - For the first quarter of fiscal 2026, the company reported a net loss of $13.2 million, or $0.58 per diluted share, compared to a net income of $9.4 million, or $0.41 per diluted share in the same period of fiscal 2025[65]. - Total revenue for the first quarter of fiscal 2026 decreased by 5.5% or $34.4 million, primarily due to challenging industry conditions and a projected 23.6% decline in net farm income compared to 2022[76]. - Gross profit for the first quarter of fiscal 2026 decreased by 25.3% or $30.8 million, with a gross profit margin declining to 15.3% from 19.4% in the prior year quarter[78]. - The company reported a loss before income taxes of $17.3 million for the first quarter of fiscal 2026, compared to an income of $12.8 million in the same period of fiscal 2025[86]. - Net cash provided by operating activities was $6.2 million for the first three months of fiscal 2026, a significant improvement from a net cash used of $32.4 million in the prior year[101]. Revenue Breakdown - Total revenue for the first quarter of fiscal 2026 was $594.3 million, a decrease of 5.5% compared to $628.7 million in the same period of fiscal 2025[86]. - Agriculture segment revenue decreased by 14.1% to $384.4 million, primarily due to lower equipment sales driven by challenging industry conditions[87]. - Equipment revenue for the first quarter of fiscal 2026 was $436.8 million, a decrease of 6.7% compared to $468.1 million in the same period of fiscal 2025[76]. - Parts revenue decreased by 2.4% to $105.6 million, while service revenue also saw a decline of 2.4% to $44.0 million in the first quarter of fiscal 2026[76]. - The construction segment reported a revenue increase of 0.9% to $72.1 million, but incurred a loss before income taxes of $4.2 million[89][90]. Operating Metrics - The absorption rate for the company decreased to 75.5% in the first quarter of fiscal 2026, down from 77.1% in the same period last year, primarily due to lower gross profit[79]. - Operating expenses decreased by 2.8% to $96.4 million, but as a percentage of revenue, operating expenses increased to 16.2% from 15.8% year-over-year[80]. - The gross profit margin for equipment sales dropped significantly to 6.8% from 11.9% in the prior year, reflecting lower equipment margins driven by softer retail demand[78]. - Equipment inventory turnover decreased from 2.0 times to 1.7 times over the rolling 12 months ended April 30, 2025, indicating a decline in demand[97]. Segment Performance - The company operates through four reportable segments: Agriculture, Construction, Europe, and Australia, with principal revenue sources including new and used equipment sales, parts sales, service, and equipment rental[61]. - Europe segment revenue increased by 44.2% to $93.9 million, attributed to higher equipment demand from EU stimulus programs[91]. - Shared Resources loss before income taxes was $4.5 million for the first quarter of fiscal 2026, compared to a loss of $1.4 million in the same period last year[94]. Tax and Debt - The effective tax rate improved to 23.6% in the first quarter of fiscal 2026 from 26.2% in the same period of fiscal 2025[83]. - Total long-term debt, including finance lease obligations, was $211.2 million, primarily fixed rate debt[109]. Foreign Currency Risk - The company manages foreign currency exchange rate risk through derivative financial instruments, primarily foreign exchange forward contracts[110]. - A hypothetical 10% increase or decrease in foreign exchange rates would not have a material impact on results of operations or cash flows[110]. - The Ukrainian subsidiary had $1.0 million of net monetary assets denominated in Ukrainian hryvnia (UAH) as of April 30, 2025[110]. - The continuation of the Russia/Ukraine conflict could lead to significant UAH devaluations or more stringent payment controls in the future[110]. - Fluctuating foreign currency exchange rates may adversely impact results of operations, cash flows, and net investment in foreign operations[111].

Financial Performance - Net income for the three months ended April 30, 2025, was $54.5 million, compared to $52.0 million for the same period in 2024, representing a 4.8% increase[9]. - Comprehensive income attributable to Greif, Inc. for the three months ended April 30, 2025, was $123.2 million, up from $44.1 million in 2024, indicating a significant increase of 179.5%[9]. - Net cash provided by operating activities for the six months ended April 30, 2025, was $105.6 million, compared to $92.0 million for the same period in 2024, an increase of 14.9%[13]. - The net income for the three months ended April 30, 2025, was $47.3 million, compared to $55.9 million for the six months ended April 30, 2025, indicating a decrease of about 15.4%[14]. - Comprehensive income for the three months ended April 30, 2025, was $123.2 million, while for the six months ended April 30, 2025, it was $102.3 million, showing a significant increase in comprehensive income[14]. - The total operating profit for the six months ended April 30, 2025, was $178.5 million, compared to $167.0 million for the same period in 2024, representing a growth of 6.5%[100][102]. Assets and Equity - Total assets as of April 30, 2025, were $6,754.4 million, compared to $6,647.6 million as of October 31, 2024, reflecting a growth of 1.6%[11]. - The total shareholders' equity increased to $2,175.0 million as of April 30, 2025, from $2,117.5 million as of October 31, 2024, representing a growth of 2.7%[12]. - As of April 30, 2025, Greif, Inc. reported a total equity of $2,175.0 million, an increase from $2,117.5 million as of October 31, 2024, reflecting a growth of approximately 2.7%[14]. - The company reported a total of $2,476.4 million in retained earnings as of April 30, 2025, reflecting a stable earnings retention strategy[14]. Debt and Financing - Long-term debt decreased to $2,290.9 million as of April 30, 2025, down from $2,626.2 million as of October 31, 2024, a reduction of 12.7%[12]. - As of April 30, 2025, the outstanding balance under the 2022 and 2023 Credit Agreements was $2,392.3 million, with a current portion of $95.8 million and a long-term portion of $2,296.5 million[55]. - The weighted average interest rate for borrowings under the 2022 and 2023 Credit Agreements was 5.88% for the six months ended April 30, 2025, while the actual interest rate was 6.06%[55]. - The Company entered into a $300.0 million Incremental Term Loan A-4 Agreement on March 25, 2024, with quarterly principal installments starting April 30, 2024, and maturing on March 1, 2027[51]. Foreign Currency and Comprehensive Income - The company reported a foreign currency translation gain of $118.0 million for the three months ended April 30, 2025, compared to a loss of $29.2 million in 2024[9]. - The foreign currency translation contributed $117.3 million to other comprehensive income for the three months ended April 30, 2025[14]. - The accumulated other comprehensive income (loss) showed a loss of $308.7 million as of April 30, 2025, compared to a loss of $355.1 million as of October 31, 2024, indicating an improvement[14]. Dividends and Stock - Dividends paid to Greif, Inc. shareholders amounted to $31.4 million, with a dividend per Class A share of $0.54 and Class B share of $0.81[14]. - The total common stock increased from 47,437 thousand shares to 47,461 thousand shares, reflecting a slight increase in shares outstanding[14]. - The treasury stock decreased from $279.0 million to $276.8 million, indicating a reduction in the company's repurchased shares[14]. Acquisitions and Restructuring - The Company acquired Ipackchem Group SAS for a total purchase price of $582.1 million, incurring transaction costs of $8.9 million[29]. - As of April 30, 2025, the fair value of identifiable net assets acquired from Ipackchem was $301.1 million, with goodwill recognized at $281.0 million[32]. - The Company recorded restructuring charges of $11.2 million for the three months ended April 30, 2025, compared to $(6.8) million for the same period in 2024[43]. - The restructuring activities in 2025 focus on optimizing operations to align with long-term profitable earnings growth[42]. Operational Efficiency and Future Growth - The company plans to continue its market expansion and product development strategies to enhance future growth prospects[9]. - Greif, Inc. is transitioning to a material solution-based structure to enhance operational efficiency and capitalize on growth opportunities, which may impact future financial reporting[21]. - The company is in the process of determining the potential impact of recently issued accounting standards on its financial position and results of operations[24][27].

Financial Performance - Net income for the three months ended April 30, 2025, was $54.5 million, compared to $52.0 million for the same period in 2024, representing a 4.8% increase[9] - Comprehensive income attributable to Greif, Inc. for the three months ended April 30, 2025, was $123.2 million, up from $44.1 million in 2024, indicating a significant increase of 179.5%[9] - Net cash provided by operating activities for the six months ended April 30, 2025, was $105.6 million, compared to $92.0 million for the same period in 2024, an increase of 14.8%[13] - The net income for the three months ended April 30, 2025, was $47.3 million, compared to $55.9 million for the six months ended April 30, 2025[14] - Comprehensive income for the three months ended April 30, 2025, was $123.2 million, while the comprehensive income for the six months ended April 30, 2025, was $102.3 million[14] - The net income attributable to Greif, Inc. for the six months ended April 30, 2025, was $55.9 million, compared to $111.6 million for the same period in 2024[92] Assets and Equity - Total assets as of April 30, 2025, were $6,754.4 million, compared to $6,647.6 million as of October 31, 2024, reflecting a growth of 1.6%[11] - Cash and cash equivalents increased to $252.7 million as of April 30, 2025, from $197.7 million at the end of October 2024, marking a rise of 27.8%[11] - The total shareholders' equity increased to $2,175.0 million as of April 30, 2025, from $2,117.5 million as of October 31, 2024, representing a growth of 2.7%[12] - As of April 30, 2025, Greif, Inc. reported a total equity of $2,175.0 million, an increase from $2,117.5 million as of October 31, 2024[14] - The company's total equity as of April 30, 2024, was $2,047.4 million, reflecting an increase from $1,986.3 million as of October 31, 2023[15] Debt and Financing - Long-term debt decreased to $2,290.9 million as of April 30, 2025, down from $2,626.2 million as of October 31, 2024, a reduction of 12.7%[12] - The Company has a secured revolving credit facility of $800.0 million, maturing on March 1, 2027[49] - As of April 30, 2025, the outstanding balance under the 2022 and 2023 Credit Agreements was $2,392.3 million, with a current portion of $95.8 million and a long-term portion of $2,296.5 million[55] - The weighted average interest rate for borrowings under the 2022 and 2023 Credit Agreements was 5.88% for the six months ended April 30, 2025, with an actual interest rate of 6.06% as of the same date[55] Foreign Currency and Translation - The company reported a foreign currency translation gain of $118.0 million for the three months ended April 30, 2025, compared to a loss of $29.2 million in 2024[9] - The company experienced a foreign currency translation gain of $117.3 million for the three months ended April 30, 2025[14] - The company reported a foreign currency translation loss of $28.3 million for the current period[15] - The net investment hedges resulted in a final gain of $11.3 million, included in the foreign currency translation component of other comprehensive income (OCI) [74] Dividends - Dividends paid to Greif, Inc. shareholders amounted to $31.4 million for the three months ended April 30, 2025, with a per share distribution of $0.54 for Class A and $0.81 for Class B shares[14] - Dividends paid to Greif, Inc. shareholders amounted to $30.0 million, with Class A and Class B shares receiving $0.52 and $0.78 per share, respectively[15] Acquisitions and Restructuring - The Company acquired Ipackchem Group SAS for a total purchase price of $582.1 million, incurring transaction costs of $8.9 million[29] - As of April 30, 2025, the fair value of identifiable net assets acquired from Ipackchem was $301.1 million, with goodwill recognized at $281.0 million[32] - The Company recorded restructuring charges of $11.2 million for the three months ended April 30, 2025, compared to $(6.8) million for the same period in 2024[43] - The Company expects to incur remaining restructuring costs of $25.9 million as of April 30, 2025[46] Operational Segments - The Customized Polymer Solutions segment generated $624.4 million in net sales for the six months ended April 30, 2025, up from $513.6 million in the same period of 2024, reflecting a 21.6% increase[100][102] - The Sustainable Fiber Solutions segment reported net sales of $1,160.5 million for the six months ended April 30, 2025, compared to $1,108.9 million in the prior year, marking a 4.7% increase[100][102] - The Durable Metal Solutions segment achieved net sales of $721.1 million for the six months ended April 30, 2025, compared to $784.2 million in the same period of 2024, reflecting a decrease of 8.0%[100][102] - The Integrated Solutions segment reported an operating profit of $17.7 million for the six months ended April 30, 2025, down from $28.5 million in the same period of 2024, a decline of 37.5%[100][102] Compliance and Standards - The interim condensed consolidated financial statements have been prepared in accordance with GAAP, ensuring compliance with SEC regulations[17] - The company is in the process of determining the potential impact of recently issued accounting standards on its financial position and operations[24] Environmental and Tax - The company expects to make employer contributions of $5.9 million to its pension plans during 2025 [86] - As of April 30, 2025, the company's environmental reserves were $19.8 million, up from $19.1 million as of October 31, 2024 [90] - Income tax expense for the six months ended April 30, 2025, was $37.6 million, compared to a benefit of $(21.2) million for the same period in 2024, reflecting a $58.8 million increase [84] - A deferred tax liability of $63.6 million was recorded as part of the Ipackchem Acquisition, arising from temporary differences between the fair value of acquired assets and their tax basis [85]