Merger and Acquisitions - The company entered into a Merger Agreement valued at approximately $8.4 billion, with each share of Class A common stock converting to $24.55 in cash upon completion[18]. - The Merger is expected to close in Q2 2026, pending stockholder approval and regulatory conditions[20]. - The company completed acquisitions of Beacon and Enfusion in 2025, enhancing its capabilities in risk management and portfolio visualization[32]. - The company completed acquisitions of Enfusion and Beacon in April 2025, and an asset purchase of Blackstone's Bistro platform in March 2025, to enhance its service offerings[84][85]. - If the Merger Agreement is terminated for certain reasons, the company may be required to pay a termination fee of approximately $0.2 billion[114]. Client and Market Performance - The company serves over 2,500 clients and aggregates data on over $10 trillion of global invested assets as of December 31, 2025[22]. - The gross revenue retention rate has remained at least 98% in 27 of the past 28 quarters, indicating strong client satisfaction and operational efficiency[29]. - The company has consistently exceeded a net revenue retention rate of 100% since 2019, reflecting successful expansion of client relationships[30]. - The company’s diversified client base includes insurance companies, asset managers, and large corporations, with assets on the platform amounting to $5.0 trillion, $3.2 trillion, and $1.4 trillion respectively as of December 31, 2025[70]. - The company has only approximately 4% market penetration in a $23 billion total addressable market (TAM), indicating significant growth potential[80]. - Revenues outside the United States represented only 25% of total revenues for the year ended December 31, 2025, despite these markets representing approximately 51% of the total addressable market[81]. Technology and Operations - The company’s platform processes data from over 4,900 daily data feeds and more than four million securities, providing comprehensive analytics and reporting[27]. - CWAN's platform supports investment accounting for over $10 trillion in assets globally as of December 31, 2025[47]. - Approximately 91% of portfolios are automatically validated, reconciled, and processed without further intervention[46]. - The platform eliminates the need for clients to manually process and reconcile data from different sources, providing a single source of truth for investment management workflows[47]. - CWAN's platform allows clients to access over 60 local currencies and 30 functional currencies, supporting multi-currency operations[52]. - The platform offers flexible configurations for accounting, supporting 45 different accounting bases including GAAP, Statutory, Tax, and IFRS[52]. - CWAN provides deep insights into opaque alternative assets, enhancing decision-making for asset owners and managers[47]. - The platform automates data aggregation, reconciliation, and validation, creating a "golden copy" of investment portfolio data[47]. - CWAN's technology stack is designed to efficiently process millions of daily transactions, ensuring scalability and efficiency[47]. - CWAN runs 1,200 automated workflows each week, driving operational improvements for clients[67]. Financial Performance and Growth - For the year ended December 31, 2025, the company's revenues grew by 62% compared to the same period in 2024[125]. - The company achieved a gross revenue retention rate of at least 98% for 27 of the past 28 quarters, with a net revenue retention rate of 109% for the quarter ended December 31, 2025[79]. - The company relies heavily on fees based on the value of assets on its platform, which are affected by market volatility and economic conditions[120]. - The company faces prolonged sales cycles and substantial upfront sales costs when targeting large financial institutions and government entities, which may impact revenue predictability[123]. - The company is vulnerable to changes in economic conditions, interest rates, and regulatory events that could adversely affect client demand for its services[121]. Compliance and Regulatory Challenges - Increased regulatory complexity has led to a nearly six-fold rise in global yearly regulatory alerts, necessitating robust compliance solutions[41]. - The company expects to incur significant costs related to compliance with privacy and security standards, which could adversely affect its financial condition[97]. - Increased regulation of data utilization may require the company to modify operations and incur additional expenses, impacting its business[96]. - Compliance with various privacy laws, including the California Consumer Privacy Act, may increase legal costs and impact operations[144]. - Cybersecurity events could lead to reputational harm, loss of clients, and significant liabilities, adversely affecting business operations[145]. Human Resources and Culture - The company has a team-oriented culture and emphasizes diversity and inclusion, believing it leads to better business outcomes[101]. - The company has observed increased competition for qualified employees, which could affect its ability to attract and retain top talent necessary for growth[126]. - As of December 31, 2025, the company had over 3,000 employees, with 1,303 located in the United States and 1,118 in India[99]. - The company has invested heavily in product development and engineering, with approximately 31% of its global employee base dedicated to these areas[91]. Intellectual Property and Legal Risks - The company is dependent on its intellectual property rights, and any failure to protect these rights could have a material adverse effect on its operations[177]. - The company holds three copyright registrations, seven registered trademarks in the U.S., and eighteen international trademarks, but only one technology is covered by an issued patent[178]. - The company faces risks of intellectual property infringement claims, which could lead to significant damages or operational changes[179]. Environmental, Social, and Governance (ESG) Considerations - Increased scrutiny on ESG practices may impose additional costs and expose the company to new risks[216]. - Stakeholders are increasingly focused on ESG issues, including climate change, human rights, and diversity[216]. - Public ESG and sustainability reporting is becoming a standard expectation among various stakeholders[216]. - Investment funds are increasingly using ESG scores to evaluate companies, impacting investment decisions[217]. - A low ESG rating could result in reputational damage and exclusion from certain investors' portfolios[217].

As filed with the Securities and Exchange Commission on February 18, 2025 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 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of event requiring this shell company report__________ Commission file number 001-42394 Sunrise Communications AG UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 Form 20-F ☐ R ...

Sales Performance - Company-operated restaurant sales decreased by $1.8 million, or 1.4%, compared to the prior year, with same-store sales down 4.7%[97] - Franchise rental revenues decreased by $8.4 million, or 7.9%, primarily due to lower sales and a decrease in the number of franchise restaurants[102] - Total franchise revenues declined to $217.6 million, down from $237.3 million, representing an 8.3% decrease[100] - Systemwide sales for the sixteen weeks ended January 18, 2026, were $1.366 billion, compared to $1.268 billion for the same period in 2025, reflecting a 7.7% increase[94] Cost and Expense Management - Food and packaging costs as a percentage of company restaurant sales increased to 29.7%, up from 25.9% in the prior year, driven by commodity inflation of 7.1%[95][98] - Payroll and employee benefit costs increased to 35.3% of company restaurant sales, up from 33.3% in the prior year, primarily due to a change in the mix of restaurants[99] - Other operating expenses increased by $5.5 million, primarily due to restructuring and integration costs[110] - Depreciation and amortization increased by $1.2 million due to new technology assets and new company-operated restaurants[106] Financial Position - As of January 18, 2026, the company had $99.4 million in cash and restricted cash, with available borrowings of $95.3 million under its $150.0 million Variable Funding Notes[116] - Operating cash flows decreased by $71.0 million compared to the previous year, primarily due to a decrease in working capital of $59.2 million[118] - Total capital expenditures for the first quarter of 2026 were $23.218 million, compared to $21.300 million in the prior year[119] - The company prepaid $105.0 million of its existing Series 2019-1 Class A-2-II Notes on January 9, 2026, as part of its debt reduction strategy[122] - The company did not declare any dividends during the current quarter, redirecting funds toward leverage reduction[127] - As of January 18, 2026, there was $175.0 million remaining under share repurchase programs authorized by the Board of Directors[128] - The company expects cash flows from operations and its financing facility to be sufficient to meet capital expenditure, working capital, and debt service requirements for at least the next twelve months[117] Tax and Income - For the first quarter of fiscal year 2026, the company recorded an income tax expense of $6.9 million, resulting in an effective tax rate of 32.4%[112] - Changes in tax laws and interpretations may adversely affect the company's income tax expenses and payments[133] Risks and Challenges - The company faces risks related to maintaining effective internal controls, which could impact financial results and shareholder confidence[133] - The company is exposed to risks from disagreements with key stakeholders, including franchisees[133] - Activist stockholder actions could lead to significant costs and divert management's focus[133] - Cybersecurity breaches and data security incidents pose risks to the company's operations[133] - Increasing dependence on digital commerce platforms may unpredictably affect consumer behavior and financial results[133] - The company has a significant amount of outstanding debt, which could negatively impact financial condition and operational results[133] - Securitized debt instruments have restrictive terms, and non-compliance could result in default, harming brand value[133] - The company has not reported any material changes in market risks as per the latest annual report[134] Operational Changes - The average number of franchise restaurants decreased by 2.9% to 1,974 from 2,032 in the prior year[100] - The company closed 14 restaurants during the period, resulting in a total of 2,128 restaurants as of January 18, 2026[94] - Losses from discontinued operations amounted to $16.8 million for the first quarter of 2026, compared to earnings of $2.7 million in the prior year quarter[114] - Interest expense, net decreased by $0.7 million to $23.682 million compared to the prior year, primarily due to lower average borrowings[111]

Financial Performance - In Q4 2025, Adamas Trust, Inc. reported a net income of $41.6 million, with a full-year net income of $101.1 million, representing a significant increase in profitability [4]. - The company increased its quarterly earnings available for distribution by 44% year-over-year, reaching $20.4 million in Q4 2025 and $80.6 million for the full year [3][4]. - Economic return on book value was 6.85% for Q4 2025 and 12.72% for the full year, reflecting effective capital management [4][8]. - The company reported a net income attributable to common stockholders of $101.1 million for the year ended December 31, 2025, compared to a net loss of $103.8 million in 2024 [30]. - Net income attributable to the Company for the three months ended December 31, 2025, was $53,527,000, and for the year it was $149,048,000 [15][16]. - Basic earnings per common share increased to $0.46 from $0.36, showing a positive trend in profitability [32]. - GAAP net income attributable to common stockholders for Q4 2025 was $41.605 million, compared to a loss of $41.828 million in Q4 2024 [46]. Investment and Asset Management - Adamas expanded its investment portfolio by $3.1 billion in 2025, with total investments amounting to $10.7 billion by year-end [3][10]. - The company completed the acquisition of Constructive for approximately $462.4 million in residential loans, enhancing its market position [8]. - The company exited its remaining multi-family joint venture equity investments, streamlining its investment strategy [8]. - Total assets increased to $12.64 billion as of December 31, 2025, up from $9.22 billion in 2024, representing a 37.5% growth [27]. - The company reported unrealized gains of $217.4 million for the year ended December 31, 2025, compared to unrealized losses of $90.5 million in 2024 [30]. - The net equity investment in consolidated multi-family properties as of December 31, 2025, was $153.477 million [56]. Income and Expenses - Total net interest income for the three months ended December 31, 2025, was $43,170,000, with a net loss from real estate of $3,292,000 [15]. - For the year ended December 31, 2025, total net interest income was $149,301,000, with a net loss from real estate of $12,417,000 [16]. - General, administrative, and operating expenses for the three months ended December 31, 2025, totaled $36,123,000 [15]. - General and administrative expenses increased to $72.7 million in 2025, compared to $48.7 million in 2024, reflecting a 49.3% increase [30]. - The Constructive segment incurred $10.2 million in direct general and administrative expenses and $4.3 million in direct loan origination costs for the three months ended December 31, 2025 [15]. Dividends and Shareholder Returns - The company raised its dividend by 15%, declaring $0.23 per common share for the last two quarters of 2025, totaling $0.86 for the full year [4][8]. - Dividends declared per common share were consistent at $0.23, maintaining shareholder returns [32]. - Earnings available for distribution (EAD) for Q4 2025 was $20.414 million, with EAD per common share at $0.23, slightly down from $0.24 in Q3 2025 [46]. Financing and Capital Structure - The company issued $82.5 million in 9.125% Senior Notes due 2030 and $115.0 million in 9.875% Senior Notes due 2030, raising approximately $190.7 million in net proceeds [8]. - As of December 31, 2025, Adamas had a net company capital allocated of $1.4 billion, with a recourse leverage ratio of 5.0x [10]. - Total liabilities increased to $11.21 billion as of December 31, 2025, from $7.81 billion in 2024, marking a 43.5% rise [27]. Performance Metrics - The yield on average interest-earning assets was 6.23% for Q4 2025 and 6.36% for the full year, indicating strong asset performance [4]. - The weighted average shares outstanding for basic earnings were 90.4 million in 2025, slightly down from 90.6 million in 2024 [30]. - The net interest spread remained stable at 1.52%, compared to 1.50% in the previous quarter [32]. - Adjusted book value per common share increased to $10.63 as of December 31, 2025, up from $10.38 in September 2025 [52]. Strategic Initiatives - The company executed a strategic repositioning by disposing of certain joint venture equity investments and acquiring assets to enhance interest income levels [43]. - Adamas Trust focuses on generating durable earnings and long-term value for stockholders through disciplined portfolio management [19]. - The Company plans to release a supplemental financial presentation accompanying the conference call on its website [18].

Financial Performance - In Q4 2025, Adamas Trust, Inc. reported a net income of $41.6 million, with a full-year net income of $101.1 million, representing a significant increase in profitability [4]. - The company increased its quarterly earnings available for distribution by 44% year-over-year, reaching $20.4 million in Q4 2025 and $80.6 million for the full year [3][4]. - Economic return on book value was 6.85% for Q4 2025 and 12.72% for the full year, reflecting effective capital management [4][8]. - The company reported a net income attributable to common stockholders of $41.6 million for Q4 2025, compared to a net loss of $41.8 million in Q4 2024 [30]. - Net income attributable to the Company for the three months ended December 31, 2025, was $53,527,000, and for the year it was $149,048,000 [15][16]. - The company experienced a net loss from real estate of $12.4 million for the year ended December 31, 2025, an improvement from a loss of $42.8 million in 2024 [30]. - The company recorded unrealized gains of $19.726 million in Q4 2025, contrasting with unrealized losses of $131.576 million in Q4 2024 [46]. Investment and Asset Management - Adamas expanded its investment portfolio by $3.1 billion in 2025, with total investments amounting to $10.7 billion by year-end [3][10]. - The company completed the acquisition of Constructive for approximately $462.4 million in residential loans, enhancing its market position [3][8]. - The company exited its remaining multi-family joint venture equity investments, streamlining its investment strategy [8]. - Total assets increased to $12.64 billion as of December 31, 2025, up from $9.22 billion in 2024, representing a 37.5% growth [27]. - Total liabilities increased to $11.21 billion as of December 31, 2025, from $7.81 billion in 2024, marking a 43.5% rise [27]. - The company's equity investments at fair value decreased to $24.7 million as of December 31, 2025, down from $113.5 million in 2024 [27]. Income and Expenses - Total net interest income for the three months ended December 31, 2025, was $43,170,000, with a net loss from real estate of $3,292,000 [15]. - For the year ended December 31, 2025, total net interest income was $149,301,000, with a net loss from real estate of $12,417,000 [16]. - General, administrative and operating expenses for the three months ended December 31, 2025, totaled $36,123,000, while for the year it was $122,941,000 [15][16]. - General and administrative expenses increased to $72.7 million for the year ended December 31, 2025, compared to $48.7 million in 2024, reflecting a 49.3% increase [30]. Dividends and Shareholder Returns - The company raised its dividend by 15%, declaring $0.23 per common share for the last two quarters of 2025, totaling $0.86 for the full year [3][4]. - Earnings available for distribution (EAD) attributable to common stockholders was $20.414 million for Q4 2025, up from $14.178 million in Q4 2024 [46]. - The Board of Directors considers EAD among other factors when determining dividends on common stock, but it should not be viewed as a guarantee of dividend payments [45]. Conference and Future Outlook - The Company will host a conference call on February 19, 2026, to discuss financial results for the three months and year ended December 31, 2025 [17]. - A supplemental financial presentation will accompany the conference call and will be available on the Company's website [18]. - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from projections [22]. Share Performance - Basic earnings per common share increased to $0.46 from $0.36, marking a 27.8% rise [32]. - The weighted average shares outstanding for basic earnings were 90.4 million for Q4 2025, slightly down from 90.6 million in Q4 2024 [30]. - Adjusted book value per common share increased to $10.63 as of December 31, 2025, from $10.35 as of December 31, 2024 [52].

Adamas Trust, Inc. Reports Fourth Quarter and Full Year 2025 Results NEW YORK, February 18, 2026 (GLOBE NEWSWIRE) - Adamas Trust, Inc. (Nasdaq: ADAM) ("Adamas," the "Company," "we," "our" or "us") today reported results for the three months and year ended December 31, 2025, respectively. Management Update To Our Stockholders Jason Serrano, Chief Executive Officer, commented: "2025 was a pivotal year for Adamas, defined by substantial investment portfolio expansion, greater profitability and our strategic ac ...

LS Financial Results and Supplemental Information FOURTH QUARTER 2025 February 18, 2026 Exhibit 99.2 Seven Hills Realty Trust Announces Fourth Quarter 2025 Results "Seven Hills delivered a strong fourth quarter, reflecting the strength of our fully performing loan portfolio and the quality of our disciplined underwriting. We generated Distributable Earnings of $0.28 per share, fully covering our quarterly distribution, while investing $101.3 million in new loans during the quarter and an additional $30.5 mi ...

Financial Performance - Net sales for the year ended December 31, 2025, were $5,037.5 million, an increase of $44.4 million, or 0.9%, compared to 2024[285]. - Net income attributable to Herbalife for 2025 was $228.3 million, or $2.20 per diluted share, a decrease of $26.0 million, or 10.2%, from 2024[286]. - The Primary Reporting Segment reported net sales of $4,758.4 million for 2025, an increase of $62.9 million, or 1.3%, compared to 2024[290]. - Contribution margin for the Primary Reporting Segment was $2,037.2 million, or 42.8% of net sales, an increase of $32.9 million, or 1.6%, from 2024[293]. - The 0.9% increase in net sales for 2025 was primarily driven by a 3.2% favorable impact of price increases, offset by a 1.6% unfavorable impact from foreign currency fluctuations and a 0.5% decrease in sales volume[285]. - Gross profit was $3,922.9 million for the year ended December 31, 2025, maintaining a gross profit margin of 77.9%[314]. - Gross profit as a percentage of net sales was flat for the year ended December 31, 2025, compared to 2024, with a favorable impact of price increases of 78 basis points and other cost changes of 9 basis points, offset by unfavorable impacts from foreign currency fluctuations of 65 basis points and higher inventory write-downs of 10 basis points[315]. Regional Sales Performance - North America reported net sales of $1,033.0 million for the year ended December 31, 2025, a decrease of $21.4 million, or 2.0%, compared to 2024[296]. - Latin America achieved net sales of $881.2 million for the year ended December 31, 2025, an increase of $48.7 million, or 5.8%, compared to 2024[300]. - EMEA region net sales were $1,114.4 million for the year ended December 31, 2025, reflecting an increase of $29.6 million, or 2.7%, compared to 2024[304]. - Asia Pacific region, excluding China, reported net sales of $1,729.8 million for the year ended December 31, 2025, an increase of $6.0 million, or 0.3%, compared to 2024[307]. - China region net sales were $279.1 million for the year ended December 31, 2025, a decrease of $18.5 million, or 6.2%, compared to 2024[311]. - In India, net sales increased by $44.8 million, or 5.3%, for the year ended December 31, 2025, supported by a reduction in GST rates[308]. Cost Management and Expenses - Selling expenses were $1,782.4 million for the year ended December 31, 2025, representing 35.4% of net sales, a decrease from 35.7% in 2024, primarily due to favorable changes in the mix of products and countries[317][318]. - General and administrative expenses decreased to $1,664.3 million for the year ended December 31, 2025, or 33.0% of net sales, down from 34.6% in 2024, driven by lower labor and benefits costs of $78.3 million[319][320]. - The company continues to assess its cost structure and potential pricing actions in response to ongoing inflationary pressures[284]. Strategic Initiatives - The company’s strategies focus on improving daily consumption approaches and leveraging technology to enhance Member experiences and drive sales[280]. - The company launched new products including a healthy lifespan supplement and MultiBurn, aimed at enhancing member sales capabilities[298]. - The beta version of the Pro2col health and wellness digital platform was unveiled in July 2025, with a successful release in December 2025[299]. Cash Flow and Capital Expenditures - Operating cash flow increased to $333.3 million for the year ended December 31, 2025, compared to $285.4 million in 2024, attributed to higher net income and lower income taxes[328]. - Capital expenditures were $80.5 million for the year ended December 31, 2025, down from $112.2 million in 2024, with significant investments in digital technology initiatives[329]. Debt and Financing - The company issued $800.0 million aggregate principal amount of senior secured notes due 2029, with an interest rate of 12.250% per annum payable semiannually[348]. - The 2024 Term Loan B Facility has an aggregate principal amount of $400.0 million and requires quarterly payments equal to 5.0% of the principal amount per annum, starting September 2024[339]. - The company repaid $981.0 million of long-term debt by extinguishing the 2018 Credit Facility, resulting in a loss on extinguishment of approximately $2.5 million[340]. - As of December 31, 2025, the outstanding principal on the 2029 Secured Notes was $800.0 million, and the company had no borrowings outstanding under the 2024 Revolving Credit Facility[348][346]. - The weighted-average interest rate for borrowings under the 2024 Credit Facility was 11.64% as of December 31, 2025, compared to 10.35% as of December 31, 2024[346]. Working Capital and Assets - The company had positive working capital of $131.8 million as of December 31, 2025, an increase of $218.5 million from negative working capital of $86.7 million in 2024[363]. - Cash and cash equivalents held by Herbalife Ltd. and its U.S. entities totaled $47.8 million as of December 31, 2025[357]. - The company had goodwill of approximately $100.5 million, an increase of $12.8 million from $87.7 million in 2024, primarily due to the acquisition of Link BioSciences Inc.[377]. - The company had marketing-related intangible assets of approximately $310.0 million as of December 31, 2025, with no impairment recorded during the years ended December 31, 2025, and 2024[377]. Tax and Accounting - The company believes it is more likely than not that the net carrying value of deferred income tax assets will be realized, although realization is not assured[380]. - The company initiated changes to its corporate entity structure, including intra-entity transfers of intellectual property to a European subsidiary, resulting in a step-up in tax basis on the fair value of the intellectual property[380]. - Tax benefits from uncertain tax positions are recognized only if it is more likely than not that the position will be sustained upon examination by taxing authorities[381]. - The company accounts for foreign currency transactions in accordance with FASB ASC Topic 830, with foreign subsidiaries' asset and liability accounts translated into U.S. dollars at period-end exchange rates[383].

Financial Performance - Fourth quarter 2025 net income was $86.3 million, or $1.42 per diluted share, compared to $77.0 million, or $1.34 per diluted share, in the same period last year, representing a 12.0% increase in earnings per share [3]. - Full year 2025 adjusted net income was $271.0 million, or $4.48 per diluted share, compared to $224.8 million, or $3.94 per diluted share, in 2024, reflecting a 13.7% increase in adjusted earnings per share [3]. - Operating income for the twelve-month 2025 period was $457.5 million, compared to $399.0 million in 2024, indicating a 14.6% increase [8]. - Net income for the year ended December 31, 2025, was $264,224,000, compared to $222,850,000 in 2024, reflecting a year-over-year increase of 18.6% [31]. - Operating income for the year ended December 31, 2025, rose to $457,467,000, up from $398,899,000 in 2024, marking a growth of 14.7% [31]. - Basic earnings per share for the year ended December 31, 2025, increased to $4.39, compared to $3.92 in 2024, an increase of 12.0% [31]. - For the three months ended December 31, 2025, ONE Gas, Inc. reported a net income of $86.3 million, an increase from $77.0 million in the same period last year, representing a growth of 16.9% [39]. - Adjusted net income for the same period was $89.7 million, compared to $77.5 million in the prior year, reflecting a year-over-year increase of 15.7% [39]. - Basic earnings per share (EPS) for 2025 was $4.39, up from $3.92 in 2024, reflecting a year-over-year increase of 12% [39]. Revenue Growth - Total revenues for the year ended December 31, 2025, increased to $2,427,428,000, up from $2,083,558,000 in 2024, representing a growth of 16.5% [31]. - Total revenues for the three months ended December 31, 2025, were $689.4 million, up from $630.7 million in the previous year, marking an increase of 9.3% [50]. - Natural gas sales for the same period reached $629.1 million, compared to $573.4 million in the prior year, indicating a growth of 9.7% [50]. - Revenues associated with KGSS-I for the twelve months ended December 31, 2025, totaled $47.4 million, an increase of $3.1 million compared to the previous year [45]. Capital Expenditures and Investments - Capital expenditures and asset removal costs for full year 2025 were $759.5 million, slightly down from $762.1 million in 2024 [11]. - Capital investments for 2026 are expected to be approximately $800 million, primarily for system integrity and replacement projects [15]. - Capital expenditures for the year ended December 31, 2025, were $707,226,000, slightly up from $703,165,000 in 2024 [37]. - Capital expenditures for the year ended December 31, 2025, were $759.5 million, slightly down from $762.1 million in 2024 [50]. Future Guidance - ONE Gas expects 2026 adjusted net income to be in the range of $306 million to $314 million, with adjusted net income per diluted share of $4.83 to $4.95 [13]. - The company anticipates long-term adjusted net income growth of 7% to 9% and adjusted net income per diluted share growth of 5% to 7% [14]. - The company provided financial guidance for 2026, projecting GAAP net income between $294 million and $302 million, with adjusted net income expected to be between $305.9 million and $314 million [41]. Dividends and Shareholder Returns - ONE Gas increased the dividend for the first quarter of 2026 by 1 cent to $0.68 per share, payable on March 6, 2026 [4]. - The company declared dividends of $0.67 per share for the fourth quarter of 2025, up from $0.66 in the same period of 2024 [31]. Assets and Liabilities - Total assets as of December 31, 2025, were $8,853,084,000, up from $8,425,571,000 in 2024, indicating a growth of 5.1% [35]. - Total current liabilities as of December 31, 2025, were $1,531,858,000, compared to $1,458,276,000 in 2024, reflecting an increase of 5.0% [35]. - The company reported a decrease in cash and cash equivalents to $33,727,000 as of December 31, 2025, down from $78,537,000 in 2024 [37]. - The company reported a decrease in total assets to $261.4 million as of December 31, 2025, from $291.2 million in 2024, a decline of 10.2% [46]. Weather Impact - Weather was 22.7% warmer than normal for the three months ended December 31, 2025, impacting operating income [5]. Customer Growth - The average number of customers increased to 2.290 million in 2025 from 2.277 million in 2024, representing a growth of 0.6% [50].

Operating Costs and Financial Risks - The company emphasizes that operating costs and business disruptions may exceed expectations, impacting revenue and distributions to stockholders[13] - Higher interest rates could adversely affect the value of variable-rate investments, increasing interest expenses and disrupting borrowers' refinancing capabilities[13] - The company has not established a minimum distribution payment level, raising concerns about future distribution capabilities[16] Credit Losses and Reserves - The CECL reserve represents a lifetime estimate of expected credit losses, influenced by factors such as loan-to-value ratios and borrower financial performance[384] - The CECL reserve is calculated using a probability of default and loss given default model, primarily based on historical loss rates from a commercial mortgage-backed securities database[386] Real Estate Investment Risks - Real estate investments are evaluated for impairment periodically, with losses recognized if carrying values exceed undiscounted future net cash flows[393] - The company faces risks related to competition in the real estate investment business, including attracting and retaining qualified personnel[16] - Changes in consumer patterns and market disruptions may adversely impact the value of certain debt and equity investments[16] Regulatory and Tax Considerations - The company is subject to extensive regulation, which could affect its ability to manage its business effectively[18] - The company may incur adverse tax consequences if it fails to qualify as a REIT, impacting cash available for distribution to stockholders[18]