[Executive Summary & Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Financial%20Highlights) This section provides a comprehensive overview of RAVE Restaurant Group's financial performance for Q4 and the full fiscal year 2025, highlighting key revenue, income, and same-store sales metrics [Fourth Quarter Fiscal Year 2025 Highlights](index=1&type=section&id=Fourth%20Quarter%20Fiscal%20Year%202025%20Highlights) RAVE Restaurant Group reported Q4 FY2025 net income of $0.8 million, a 3.6% decrease, with total revenue down 6.0% to $3.2 million and adjusted EBITDA down 7.3% to $1.1 million Fourth Quarter Fiscal Year 2025 Financial Performance (vs. Prior Year): | Metric | Q4 FY2025 | Prior Year | Change (%) | | :-------------------------------- | :-------- | :-------- | :--------- | | Net Income | $0.8 million | $0.83 million | -3.6% | | Pre-tax Income | $1.2 million | $1.16 million | +3.8% | | Total Revenue | $3.2 million | $3.4 million | -6.0% | | Adjusted EBITDA | $1.1 million | $1.19 million | -7.3% | | Diluted Net Income Per Share | $0.06 | $0.06 | 0.0% | Fourth Quarter Fiscal Year 2025 Same-Store Retail Sales (13 Weeks vs. 13 Weeks): | Brand | Change (%) | | :-------- | :--------- | | Pizza Inn Domestic | +6.3% | | Pie Five Domestic | -7.2% | - Cash and cash equivalents totaled **$2.9 million**, with short-term investments at **$7.0 million** as of June 29, 2025[2](index=2&type=chunk) - At quarter-end, Pizza Inn had **96 domestic** and **22 international** locations, while Pie Five had **17 domestic** locations[2](index=2&type=chunk) [Annual Fiscal Year 2025 Highlights](index=2&type=section&id=Annual%20Fiscal%20Year%202025%20Highlights) For FY2025 (52 weeks), net income increased to $2.7 million, pre-tax income to $3.6 million, total revenue slightly decreased to $12.0 million, and adjusted EBITDA rose to $3.6 million Annual Fiscal Year 2025 Financial Performance (vs. Prior Year): | Metric | FY2025 | FY2024 | Change | | :-------------------------------- | :------- | :------- | :------- | | Net Income | $2.7 million | $2.5 million | +$0.2 million | | Pre-tax Income | $3.6 million | $3.1 million | +$0.5 million | | Total Revenue | $12.0 million | $12.1 million | -$0.1 million | | Adjusted EBITDA | $3.6 million | $3.2 million | +$0.4 million | | Diluted Net Income Per Share | $0.19 | $0.17 | +$0.02 | Annual Fiscal Year 2025 Same-Store Retail Sales (vs. Prior Year): | Brand | Change (%) | | :-------------------------------- | :--------- | | RAVE Domestic Total | +0.8% | | Pizza Inn Domestic | +1.9% | | Pie Five Domestic | -8.4% | - Pizza Inn buffet locations achieved net growth for the **fourth consecutive year**[3](index=3&type=chunk) - Cash flow from operations increased by **$0.6 million** to **$3.4 million**[3](index=3&type=chunk) - Cash and short-term investments increased by **$2.1 million** in FY2025, reaching **$9.9 million** as of June 29, 2025[3](index=3&type=chunk) [Management Commentary](index=3&type=section&id=Management%20Commentary) This section presents insights from the CEO and CFO on the company's operational achievements, financial management, and strategic growth initiatives for the fiscal year [CEO Remarks](index=3&type=section&id=CEO%20Remarks) CEO Brandon Solano highlighted 21 consecutive profitable quarters, noting the success of the $8 'I'm Eating at Pizza Inn' promotion and accelerated Pizza Inn brand growth through new openings and remodels - The company has achieved **21 consecutive profitable quarters**[4](index=4&type=chunk) - The '$8 I'm Eating at Pizza Inn' promotion drove **30.6% sales growth** and **34.7% traffic growth** during the last eight weeks of Q4[5](index=5&type=chunk) - Pizza Inn locations not participating in the $8 promotion still saw **over 5% same-store sales growth** with a summer salad bar promotion[5](index=5&type=chunk) - The Pizza Inn brand increased its buffet count for the **fourth consecutive year** and completed **11 remodels** with positive results[5](index=5&type=chunk) - The domestic new store pipeline includes **31 signed locations**, with **12 planned to open** in the current fiscal year (ending June 28, 2026), alongside new international openings in Egypt and Saudi Arabia[5](index=5&type=chunk) [CFO Remarks](index=3&type=section&id=CFO%20Remarks) CFO Jay Rooney noted effective expense management and Pizza Inn's 6.3% Q4 same-store sales growth contributed to over 17% annual pre-tax income increase for FY2025 - Effective expense management was maintained throughout fiscal year 2025[5](index=5&type=chunk) - Pizza Inn's **6.3% same-store sales growth** in Q4 contributed to an **over 17% increase** in annual pre-tax income compared to the prior 53-week fiscal year[5](index=5&type=chunk) [Company Overview](index=5&type=section&id=Company%20Overview) This section introduces RAVE Restaurant Group, Inc., detailing its business model, brand portfolio, and the distinct offerings of Pizza Inn and Pie Five [About RAVE Restaurant Group, Inc.](index=5&type=section&id=About%20RAVE%20Restaurant%20Group%2C%20Inc.) RAVE Restaurant Group, Inc., based in Dallas, operates Pizza Inn and Pie Five brands via franchising, licensing, and supply, with Pizza Inn known for its buffet and Pie Five for fast-casual personalized pizza - RAVE Restaurant Group operates Pie Five and Pizza Inn restaurants through **franchising, licensing, and supply** across domestic and international markets[11](index=11&type=chunk) - Founded in 1958, Pizza Inn is renowned for its buffet experience featuring **house-made dough, 100% whole-milk mozzarella, fresh ingredients, and signature sauces**[11](index=11&type=chunk) - Pie Five Pizza, launched in 2011, pioneered the fast-casual pizza concept, offering **customizable, gourmet ingredients and rapid service**[11](index=11&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section defines non-GAAP financial metrics like EBITDA and Adjusted EBITDA, explaining their utility for performance assessment and providing a detailed reconciliation to GAAP net income [Definition and Use of Non-GAAP Measures](index=3&type=section&id=Definition%20and%20Use%20of%20Non-GAAP%20Measures) The company provides non-GAAP metrics like EBITDA and Adjusted EBITDA, which management deems useful for assessing operating performance and strategy, but emphasizes they are not GAAP substitutes - Non-GAAP financial measures, such as EBITDA and Adjusted EBITDA, are considered important supplemental metrics for evaluating operating performance and are useful for investors and management in assessing business strategy, planning, and budgeting[6](index=6&type=chunk)[7](index=7&type=chunk) - These non-GAAP measures should not be considered as a substitute for or superior to financial statements prepared in accordance with generally accepted accounting principles (GAAP)[6](index=6&type=chunk) - EBITDA is defined as earnings before interest, taxes, depreciation, and amortization[8](index=8&type=chunk) - Adjusted EBITDA further excludes stock-based compensation, severance, gain/loss on asset disposals, impairment and other lease charges, franchise defaults and store closing income/expense, and store closing and non-operating store costs from EBITDA[8](index=8&type=chunk) [Adjusted EBITDA Reconciliation](index=9&type=section&id=Adjusted%20EBITDA%20Reconciliation) This section provides a reconciliation of net income to EBITDA and Adjusted EBITDA for fiscal years 2025 and 2024, detailing adjustments made to derive non-GAAP figures Adjusted EBITDA Reconciliation (in thousands): | Metric | FY2025 (June 29) | FY2024 (June 30) | | :-------------------------------- | :--------------- | :--------------- | | Net Income | $2,702 | $2,473 | | Interest Income | (354) | (153) | | Income Tax Expense | 918 | 619 | | Depreciation and Amortization | 182 | 219 | | **EBITDA** | **$3,448** | **$3,158** | | Stock-based Compensation Expense | 136 | 149 | | Severance | 12 | 5 | | Franchise Defaults and Store Closing Income | (13) | (156) | | **Adjusted EBITDA** | **$3,583** | **$3,156** | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's complete financial position and performance through consolidated statements of income, balance sheets, and cash flows for recent fiscal periods [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income show RAVE Restaurant Group's net income increased from $1,613 thousand in FY2023 to $2,702 thousand in FY2025, despite a slight decrease in total revenue Consolidated Statements of Income (in thousands, except per share amounts): | Metric | FY2025 (June 29) | FY2024 (June 30) | FY2023 (June 25) | | :-------------------------------- | :--------------- | :--------------- | :--------------- | | Revenue | $12,039 | $12,150 | $11,889 | | Cost of Sales and Expenses | 8,419 | 9,058 | 9,739 | | Pre-tax Income | 3,620 | 3,092 | 2,150 | | Income Tax Expense | 918 | 619 | 537 | | **Net Income** | **$2,702** | **$2,473** | **$1,613** | | Diluted Net Income Per Share | $0.19 | $0.17 | $0.10 | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets indicate total assets increased from $15,819 thousand in FY2024 to $16,557 thousand in FY2025, driven by higher short-term investments, while total liabilities decreased Consolidated Balance Sheets (in thousands, except share amounts): | Metric | June 29, 2025 | June 30, 2024 | | :-------------------------------- | :-------------- | :-------------- | | **Assets** | | | | Cash and Cash Equivalents | $2,859 | $2,886 | | Short-term Investments | 7,024 | 4,945 | | Total Current Assets | 11,493 | 9,536 | | **Total Assets** | **$16,557** | **$15,819** | | **Liabilities and Stockholders' Equity** | | | | Total Current Liabilities | 1,740 | 2,019 | | Total Liabilities | 2,403 | 3,117 | | Total Stockholders' Equity | 14,154 | 12,702 | | **Total Liabilities and Stockholders' Equity** | **$16,557** | **$15,819** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to $3,395 thousand in FY2025, with net cash used in investing activities significantly improving to $2,036 thousand, and financing activities using $1,386 thousand for stock repurchases Consolidated Statements of Cash Flows (in thousands): | Metric | FY2025 (June 29) | FY2024 (June 30) | FY2023 (June 25) | | :-------------------------------- | :--------------- | :--------------- | :--------------- | | Cash Flow from Operating Activities | $3,395 | $2,845 | $2,841 | | Cash Flow Used in Investing Activities | (2,036) | (4,976) | (227) | | Cash Flow Used in Financing Activities | (1,386) | (311) | (5,009) | | Net Decrease in Cash and Cash Equivalents | (27) | (2,442) | (2,395) | | Cash and Cash Equivalents, End of Period | $2,859 | $2,886 | $5,328 | [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section includes a cautionary note regarding forward-looking statements, emphasizing inherent risks, uncertainties, and the speculative nature of future projections [Note Regarding Forward-Looking Statements](index=4&type=section&id=Note%20Regarding%20Forward-Looking%20Statements) This section serves as a cautionary statement, indicating that non-historical information in the press release may constitute forward-looking statements subject to risks, uncertainties, and assumptions - Certain statements in this press release, excluding historical information, may be considered forward-looking statements protected by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[9](index=9&type=chunk) - These forward-looking statements are based on current expectations and involve numerous risks, uncertainties, and assumptions, many of which are difficult to predict accurately and are beyond the company's control[9](index=9&type=chunk) - While assumptions underlying forward-looking statements are believed to be reasonable, any assumption could prove inaccurate, thus no assurance can be given regarding the accuracy of any forward-looking statement or the achievement of company goals and plans[9](index=9&type=chunk) [Other Information](index=5&type=section&id=Other%20Information) This section provides essential supplementary details, including contact information for investor relations [Contact Information](index=5&type=section&id=Contact%20Information) This section provides contact information for RAVE Restaurant Group, Inc. investor relations - Investor Relations Contact: RAVE Restaurant Group, Inc., Phone: **469-384-5000**[12](index=12&type=chunk)

PART I [ITEM 1. BUSINESS](index=2&type=section&id=ITEM%201.%20BUSINESS%2E) Rave Restaurant Group operates and franchises Pizza Inn and Pie Five pizza concepts, with 135 total units as of June 29, 2025 - Rave Restaurant Group, Inc. operates and franchises pizza concepts under **'Pizza Inn'** (Buffet, Delco, Express, Ghost Kitchens, PIE Kiosks) and **'Pie Five'** (fast-casual, ghost kitchens)[11](index=11&type=chunk) - The company facilitates food, equipment, and supply distribution to its domestic and international restaurant system through third-party agreements[11](index=11&type=chunk) [General Business Overview](index=2&type=section&id=General%20Business%20Overview) The company operates and franchises pizza restaurant concepts under the Pizza Inn and Pie Five brands, with various unit types - Rave Restaurant Group, Inc. operates and franchises pizza concepts under **'Pizza Inn'** (Buffet, Delco, Express, Ghost Kitchens, PIE Kiosks) and **'Pie Five'** (fast-casual, ghost kitchens)[11](index=11&type=chunk) Restaurant Unit Count (June 29, 2025) | Category | Count | | :-------------------------------- | :---- | | Total Franchised Pizza Inn | 117 | | Total Franchised Pie Five | 17 | | Total Licensed PIE Unit | 1 | | Domestic Franchised Pizza Inn | 95 | | International Franchised Pizza Inn | 22 | [Company History](index=2&type=section&id=Our%20History) Pizza Inn opened its first restaurant in 1958, expanded internationally in the late 1970s, and began trading on NASDAQ in 1993 - The first Pizza Inn opened in Dallas, Texas in **1958**, with the first franchise awarded in **1963** and international franchising beginning in the late **1970s**[13](index=13&type=chunk) - The company's stock began trading on NASDAQ in **1993** under the ticker symbol **'RAVE'**[13](index=13&type=chunk) - The first Pie Five restaurant opened in **2011**, and the PIE kiosk solution was launched in **2019**[13](index=13&type=chunk) [Restaurant Concepts](index=2&type=section&id=Our%20Concepts) The company operates and franchises restaurant concepts under two distinct brands: Pizza Inn and Pie Five - The company operates and franchises restaurant concepts under two distinct brands: **Pizza Inn** and **Pie Five**[14](index=14&type=chunk) [Pizza Inn Concept Details](index=2&type=section&id=Pizza%20Inn) Pizza Inn offers diverse unit types including Buffet, Delco, Express, Ghost Kitchens, and licensed PIE Kiosks - Pizza Inn offers Buffet, Delco (delivery/carryout), Express, and Ghost Kitchen Units, along with licensed PIE Kiosks[15](index=15&type=chunk) - Buffet and Delco Units feature hand-made dough and proprietary ingredients, while Express Units use pre-prepared crusts for lower investment and operating costs[15](index=15&type=chunk)[18](index=18&type=chunk) - Pizza Inn Ghost Kitchen Units operate within Pie Five restaurants, serving online customers through third-party delivery[20](index=20&type=chunk) [Pie Five Concept Details](index=3&type=section&id=Pie%20Five) Pie Five is a fast-casual pizza concept offering individualized pizzas with fresh toppings, typically located in high-traffic areas - Pie Five is a fast-casual pizza concept offering individualized pizzas with fresh toppings, baked in specially designed ovens[21](index=21&type=chunk) - Traditional Pie Five restaurants are typically **1,800-2,400 square feet**, located in high-traffic urban/suburban areas, and serve lunch and dinner[22](index=22&type=chunk) [Site Selection Process](index=3&type=section&id=Site%20Selection) The company considers site selection critical, involving demographic review and evaluation, often leveraging franchisee knowledge - The company considers site selection critical, involving trade area demographics review and evaluation, often relying on franchisee knowledge[23](index=23&type=chunk) [Development and Operations Strategy](index=3&type=section&id=Development%20and%20Operations%20Strategy) The company plans to expand Pizza Inn domestically and internationally, while opportunistically evaluating Pie Five unit development - The company plans to expand the Pizza Inn system domestically and internationally through new franchised restaurants, evaluating international development in fiscal 2026[24](index=24&type=chunk) - For Pie Five, the company will opportunistically evaluate franchised unit development, focusing on experienced, well-capitalized operators, and expects a modest decrease in units in future periods[27](index=27&type=chunk) [Domestic Franchise Operations](index=4&type=section&id=Domestic%20Franchise%20Operations) Franchise agreements require adherence to operating systems, payment of fees, marketing contributions, and ongoing royalties - Franchise agreements require adherence to operating systems, payment of franchise fees, marketing fund contributions, and continuing royalties[28](index=28&type=chunk)[29](index=29&type=chunk) - The company offers training programs focusing on food preparation, service, cost control, sanitation, safety, marketing, and personnel management[30](index=30&type=chunk) - Franchisees must comply with written policies and standards for menu, ingredients, decor, and operations, with ongoing support from franchise business consultants[31](index=31&type=chunk) [Domestic Kiosk License Operations](index=4&type=section&id=Domestic%20Kiosk%20License%20Operations) PIE Units are offered under five-year initial license periods without development fees, license fees, royalties, or advertising assessments - PIE Units are offered under five-year initial license periods with renewal options, without development fees, license fees, royalties, or advertising assessments[32](index=32&type=chunk) - Licensees must comply with Pizza Inn brand standards, and mandated product sourcing provisions result in supplier rebates for the company[32](index=32&type=chunk)[34](index=34&type=chunk) [International Franchise Operations](index=5&type=section&id=International%20Franchise%20Operations) The company offers master license rights for Pizza Inn internationally, with 22 international Pizza Inn restaurants as of June 29, 2025 - The company offers master license rights for Pizza Inn in foreign countries, with negotiated fees, development schedules, and ongoing royalties, but is not actively marketing Pie Five internationally[36](index=36&type=chunk) - As of June 29, 2025, there were **22 international Pizza Inn restaurants**, primarily in Saudi Arabia and the Middle East, with a few in Honduras and New Zealand[37](index=37&type=chunk) [Food and Supply Distribution](index=5&type=section&id=Food%20and%20Supply%20Distribution) Franchisees and licensees purchase food and supplies from authorized third-party distributors, benefiting from the company's vendor negotiations - Franchisees and licensees purchase food and supplies from authorized third-party distributors, benefiting from the company's direct vendor negotiations and volume purchasing[38](index=38&type=chunk) - Proprietary food products (e.g., cheese, pizza sauce, flour mixture) must be purchased from authorized distributors to ensure quality and consistency[38](index=38&type=chunk) - The company does not engage in commodity hedging but enters into pricing arrangements for up to a year in advance for certain high-volume products[40](index=40&type=chunk) [Marketing and Advertising](index=5&type=section&id=Marketing%20and%20Advertising) Franchisees contribute a percentage of sales to a marketing fund and conduct local marketing efforts with company support - Franchisees contribute a specified percentage of sales to a marketing fund for various advertising programs and materials, including print, digital, social media, and in-store promotions[42](index=42&type=chunk) - Franchisees are also required to conduct independent local marketing efforts, supported by company-provided materials[43](index=43&type=chunk) [Trademarks and Quality Control](index=6&type=section&id=Trademarks%20and%20Quality%20Control) The company owns various trademarks, including 'Pizza Inn' and 'Pie Five', which are essential for business protection - The company owns various trademarks, including **'Pizza Inn'** and **'Pie Five'**, registered with the USPTO and in several foreign countries, essential for business protection[44](index=44&type=chunk) [Government Regulation](index=6&type=section&id=Government%20Regulation) The company and its franchisees are subject to federal, state, and local laws affecting restaurant operations and franchise sales - The company and its franchisees are subject to federal, state, and local laws affecting restaurant operations, including licensing and regulation by health, safety, and alcoholic beverage authorities[45](index=45&type=chunk) - The company is subject to FTC regulations and state laws governing franchise offers and sales, requiring a franchise disclosure document for prospective franchisees[46](index=46&type=chunk) [Employees](index=6&type=section&id=Employees) As of June 29, 2025, the company had 24 full-time employees, none covered by collective bargaining agreements - As of June 29, 2025, the company had **24 full-time employees**, none of whom are covered by collective bargaining agreements[47](index=47&type=chunk) [Industry and Competition](index=6&type=section&id=Industry%20and%20Competition) The restaurant industry is intensely competitive across various factors, with numerous established competitors in the pizza segment - The restaurant industry is intensely competitive regarding price, service, location, and food quality, with many well-established competitors[48](index=48&type=chunk) - Primary competitors in the pizza segment include national and regional pizza chains, as well as frozen pizza products and fast-casual pizza concepts[48](index=48&type=chunk) - Competition for franchise sales is based on product quality, price, value, consumer acceptance, franchisor experience, and support[49](index=49&type=chunk) [ITEM 1A. RISK FACTORS](index=6&type=section&id=ITEM%201A.%20RISK%20FACTORS%2E) Risk factors disclosure is not required for a smaller reporting company - Risk factors disclosure is not required for a smaller reporting company[50](index=50&type=chunk) [ITEM 1B. UNRESOLVED STAFF COMMENTS](index=6&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS%2

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Fiscal Year 2025 Performance Overview](index=1&type=section&id=Fiscal%20Year%202025%20Performance%20Overview) Jabil achieved a strong Fiscal Year 2025, marked by revenue growth, solid core margins, increased core diluted EPS, and robust free cash flow, driven by strong AI-driven demand offsetting pressures in Automotive and Renewables - CEO Mike Dastoor stated, "Fiscal 2025 was a strong year for Jabil as we grew revenue, delivered solid core margins, increased core diluted EPS, and generated robust free cash flow"[2](index=2&type=chunk) - Performance was driven by strength in **AI-driven demand** across capital equipment, data centers, and networking, combined with deliberate portfolio actions, offsetting pressures in Automotive and Renewables[2](index=2&type=chunk) | Metric | Value | | :----------------------------- | :---------------- | | Net revenue | $29.8 billion | | U.S. GAAP operating income | $1.2 billion | | U.S. GAAP diluted earnings per share | $5.92 | | Core operating income (Non-GAAP) | $1.6 billion | | Core diluted earnings per share (Non-GAAP) | $9.75 | [Fourth Quarter Fiscal Year 2025 Performance](index=1&type=section&id=Fourth%20Quarter%20Fiscal%20Year%202025%20Performance) Jabil reported strong financial results for the fourth quarter of Fiscal Year 2025, with significant year-over-year increases in net revenue, GAAP operating income, and core diluted earnings per share | Metric | Value | | :----------------------------- | :---------------- | | Net revenue | $8.3 billion | | U.S. GAAP operating income | $337 million | | U.S. GAAP diluted earnings per share | $1.99 | | Core operating income (Non-GAAP) | $519 million | | Core diluted earnings per share (Non-GAAP) | $3.29 | [Fiscal Year 2026 Outlook](index=1&type=section&id=Fiscal%20Year%202026%20Outlook) Jabil projects strong FY26 with increased revenue, improved core margins, higher core diluted EPS, and robust free cash flow, driven by AI and healthcare - CEO Mike Dastoor expects FY26 revenue of approximately **$31.3 billion**, core operating margins of **5.6%**, core diluted EPS of **$11.00**, and adjusted free cash flow greater than **$1.3 billion**[4](index=4&type=chunk) - Jabil is well-positioned for sustainable value creation with significant opportunities in **AI data center infrastructure**, **healthcare**, and advanced warehouse and retail automation[4](index=4&type=chunk) | Metric | Projection | | :----------------------------- | :---------------- | | Net revenue | $31.3 billion | | Core operating margin (Non-GAAP) | 5.6% | | Core diluted earnings per share (Non-GAAP) | $11.00 per diluted share | | Adjusted free cash flow (Non-GAAP) | $1.3+ billion | [First Quarter Fiscal Year 2026 Outlook](index=1&type=section&id=First%20Quarter%20Fiscal%20Year%202026%20Outlook) Jabil forecasts Q1 FY26 net revenue between $7.7 billion and $8.3 billion, with core diluted EPS $2.47 to $2.87 | Metric | Range | | :----------------------------- | :---------------- | | Net revenue | $7.7 billion to $8.3 billion | | U.S. GAAP operating income | $263 million to $343 million | | U.S. GAAP diluted earnings per share | $1.27 to $1.84 per diluted share | | Core operating income (Non-GAAP) | $400 million to $460 million | | Core diluted earnings per share (Non-GAAP) | $2.47 to $2.87 per diluted share | [Financial Statements](index=4&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Jabil's total assets increased to $18.543 billion, driven by higher accounts receivable and inventories, while total liabilities rose and stockholders' equity decreased | Metric | Aug 31, 2025 (Unaudited) | Aug 31, 2024 | Change (YoY) | | :---------------------------------- | :----------------------- | :------------- | :------------ | | Total assets | $18,543 million | $17,351 million | +$1,192 million | | Total liabilities | $17,026 million | $15,614 million | +$1,412 million | | Total Jabil Inc. stockholders' equity | $1,513 million | $1,737 million | -$224 million | - Key asset changes include an increase in accounts receivable, net (from **$3,533 million to $4,039 million**), inventories, net (from **$4,276 million to $4,681 million**), and goodwill and intangible assets, net (from **$804 million to $1,114 million**)[17](index=17&type=chunk) - Accounts payable significantly increased from **$6,190 million in FY24 to $7,937 million in FY25**[17](index=17&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For FY25, Jabil reported a slight increase in net revenue to $29.802 billion, but GAAP operating income and net income significantly decreased, influenced by a divestiture loss versus prior year gain Fiscal Year Performance | Metric | FY25 (Unaudited) | FY24 | Change (YoY) | | :---------------------------------- | :--------------- | :----------- | :----------- | | Net revenue | $29,802 million | $28,883 million | +$919 million | | Gross profit | $2,646 million | $2,676 million | -$30 million | | Operating income | $1,182 million | $2,013 million | -$831 million | | Net income attributable to Jabil Inc. | $657 million | $1,388 million | -$731 million | | Diluted EPS | $5.92 | $11.17 | -$5.25 | Three Months Ended August 31 Performance | Metric | Q4 FY25 (Unaudited) | Q4 FY24 | Change (YoY) | | :---------------------------------- | :------------------ | :---------- | :----------- | | Net revenue | $8,252 million | $6,964 million | +$1,288 million | | Gross profit | $783 million | $663 million | +$120 million | | Operating income | $337 million | $318 million | +$19 million | | Net income attributable to Jabil Inc. | $218 million | $138 million | +$80 million | | Diluted EPS | $1.99 | $1.18 | +$0.81 | - The loss from the divestiture of businesses was **$53 million in FY25**, a significant shift from a gain of **$942 million in FY24**[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Jabil's net cash from operating activities slightly decreased in FY25 to $1.640 billion, while investing activities shifted to a net outflow of $714 million due to lower divestiture proceeds and increased acquisitions | Metric | FY25 (Unaudited) | FY24 | Change (YoY) | | :---------------------------------- | :--------------- | :----------- | :----------- | | Net cash provided by operating activities | $1,640 million | $1,716 million | -$76 million | | Net cash (used in) provided by investing activities | -$714 million | $1,351 million | -$2,065 million | | Net cash used in financing activities | -$1,204 million | -$2,668 million | +$1,464 million | | Net (decrease) increase in cash and cash equivalents | -$268 million | $397 million | -$665 million | - Proceeds from the divestiture of businesses, net of cash, decreased significantly from **$2,108 million in FY24 to $7 million in FY25**[21](index=21&type=chunk) - Cash paid for business and intangible asset acquisitions, net of cash, increased from **$90 million in FY24 to $392 million in FY25**[21](index=21&type=chunk) [Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) [Explanation of Non-GAAP Measures](index=2&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Jabil uses non-GAAP measures like core operating income and adjusted free cash flow to offer investors an alternative perspective on its core manufacturing operations, excluding certain U.S. GAAP items for comparable evaluation - Non-GAAP measures facilitate evaluation of Jabil's core operating performance, offering an additional method for assessing operating income, earnings, diluted EPS, and free cash flow from its core manufacturing operations[9](index=9&type=chunk)[10](index=10&type=chunk) - Management uses non-GAAP financial measures for operating decisions, assessing business performance, and as a factor in determining certain employee incentive compensation[10](index=10&type=chunk) - A normalized core tax rate is determined annually for non-GAAP income tax provision to ensure consistency across reporting periods, based on full-year financial projections and tax considerations[11](index=11&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Jabil provides detailed reconciliation of U.S. GAAP to non-GAAP measures, illustrating adjustments for amortization, stock-based compensation, restructuring, and divestiture gains/losses, impacting reported operating income, net income, and diluted EPS Core Operating Income Reconciliation | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :-------------------------- | :-------- | :-------- | :------- | :------- | | Operating income (U.S. GAAP) | $337 | $318 | $1,182 | $2,013 | | Adjustments to operating income | $182 | $83 | $438 | -$425 | | Core operating income (Non-GAAP) | $519 | $401 | $1,620 | $1,588 | Core Earnings Reconciliation | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :---------------------------------- | :-------- | :-------- | :------- | :------- | | Net income attributable to Jabil Inc. (U.S. GAAP) | $218 | $138 | $657 | $1,388 | | Core earnings (Non-GAAP) | $360 | $270 | $1,082 | $1,056 | Core Diluted EPS Reconciliation | Metric | Q4 FY25 | Q4 FY24 | FY25 | FY24 | | :---------------------------------- | :-------- | :-------- | :------- | :------- | | Diluted earnings per share (U.S. GAAP) | $1.99 | $1.18 | $5.92 | $11.17 | | Diluted core earnings per share (Non-GAAP) | $3.29 | $2.30 | $9.75 | $8.49 | [Adjusted Free Cash Flow](index=8&type=section&id=Adjusted%20Free%20Cash%20Flow) Jabil reported an adjusted free cash flow of $1.318 billion for FY25, an increase from $1.055 billion in FY24, demonstrating strong cash generation despite capital expenditures | Metric | FY25 (Unaudited) | FY24 | Change (YoY) | | :---------------------------------- | :--------------- | :----------- | :----------- | | Net cash provided by operating activities (U.S. GAAP) | $1,640 million | $1,716 million | -$76 million | | Acquisition of property, plant and equipment ("PP&E") | -$468 million | -$784 million | +$316 million | | Proceeds and advances from sale of PP&E | $146 million | $123 million | +$23 million | | Adjusted free cash flow (Non-GAAP) | $1,318 million | $1,055 million | +$263 million | - The calculation of adjusted free cash flow includes customer co-investment in PP&E, where cash payments for acquisition are recognized, and reimbursements are recognized as proceeds from sale[24](index=24&type=chunk) [Company Information & Disclosures](index=2&type=section&id=Company%20Information%20%26%20Disclosures) [About Jabil](index=3&type=section&id=About%20Jabil) Jabil (NYSE: JBL) is a global manufacturing solutions provider with over 50 years of experience, offering comprehensive engineering, supply chain, and manufacturing services across more than 100 sites worldwide, committed to sustainable processes and diverse communities - Jabil is a trusted partner for top brands, providing comprehensive engineering, supply chain, and manufacturing solutions[14](index=14&type=chunk) - With over **50 years of experience** and a network of over **100 sites worldwide**, Jabil combines global reach with local expertise[14](index=14&type=chunk) - Jabil is committed to building sustainable processes that minimize environmental impact and foster vibrant and diverse communities[14](index=14&type=chunk) [Investor Relations & Media Contacts](index=3&type=section&id=Investor%20Relations%20%26%20Media%20Contacts) Contact information for Jabil's Investor Relations (Adam Berry) and Media Relations (Timur Aydin) is provided for stakeholder inquiries - Investor Contact: **Adam Berry**, Senior Vice President, Investor Relations and Corporate Affairs (Adam_Berry@jabil.com)[15](index=15&type=chunk) - Media Contact: **Timur Aydin**, Senior Director, Enterprise Marketing and Communications (publicrelations@jabil.com)[15](index=15&type=chunk) [Conference Call & Replay Information](index=3&type=section&id=Conference%20Call%20%26%20Replay%20Information) Jabil held a conference call on September 25, 2025, to discuss earnings, with a live audio webcast and slide presentation available on the Investor Relations website, where an archived replay is also accessible - A conference call was held on **September 25, 2025, at 8:30 a.m. ET** to discuss Q4 and FY25 earnings and provide an investor briefing[13](index=13&type=chunk) - The live audio webcast and accompanying slide presentation are available on Jabil's Investor Relations website (https://investors.jabil.com), with an archived replay also accessible[13](index=13&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This release contains forward-looking statements regarding Jabil's anticipated financial results and future performance, based on current expectations and subject to risks and uncertainties that could cause actual outcomes to differ materially, with no obligation to update - The statements in this release are based on current expectations, forecasts, and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially[7](index=7&type=chunk) - Risk factors include, but are not limited to, managing production and demand, dependence on limited customers/suppliers, changes in technology, international operations, regulatory risks, financial risks, and global events[7](index=7&type=chunk) - Jabil assumes no obligation to update these forward-looking statements[7](index=7&type=chunk)

[Executive Summary](index=1&type=section&id=Executive%20Summary) BlackBerry delivered year-over-year revenue growth, expanded gross margins, and reduced operating expenses, achieving GAAP profitability for Q2 FY26 [Overview of Q2 FY26 Results](index=1&type=section&id=Overview%20of%20Q2%20FY26%20Results) BlackBerry delivered year-over-year revenue growth, expanded gross margins, and reduced operating expenses, achieving GAAP profitability for the second consecutive quarter in Q2 FY26. Both the QNX and Secure Communications divisions exceeded expectations and raised full-year guidance, while the company also returned $20 million to shareholders - BlackBerry delivered **year-over-year revenue growth**, expanded **gross margins**, and reduced **operating expenses**, achieving a **second consecutive quarter of GAAP profitability**[3](index=3&type=chunk) - QNX division recorded a **'rule of 40' quarter** and made progress across key growth initiatives. Secure Communications division **exceeded expectations** at both the top and bottom line[3](index=3&type=chunk) - The company returned **$20 million** to shareholders as part of a **share buyback program**[5](index=5&type=chunk) [Second Quarter Fiscal 2026 Financial Highlights](index=1&type=section&id=Second%20Quarter%20Fiscal%202026%20Financial%20Highlights) BlackBerry exceeded Q2 FY26 revenue guidance, achieving 3% YoY growth, 75% gross margin, and positive GAAP operating income [Overall Company Performance](index=1&type=section&id=Overall%20Company%20Performance) BlackBerry's total revenue for Q2 FY26 exceeded guidance at $129.6 million, marking a 3% year-over-year increase. The company also saw its GAAP and adjusted gross margin rise by 4 percentage points year-over-year to 75%, and achieved GAAP Operating Income of $11.5 million and adjusted EBITDA of $25.9 million Q2 FY26 Overall Company Financial Performance | Metric | Value (Millions USD) | YoY Change | | :-------------------------------- | :------------------- | :--------- | | Total Company Revenue | $129.6 | +3% | | Total Company GAAP Gross Margin | 75% | +4 ppts | | Total Company Adjusted Gross Margin | 75% | +4 ppts | | Total Company GAAP Operating Income | $11.5 | +$9.3 million | | Total Company Adjusted EBITDA | $25.9 | Exceeded guidance | | Adjusted EBITDA as % of Revenue | 20% | | - BlackBerry achieved **GAAP net income of $13.3 million** and **non-GAAP basic earnings per share of $0.04**, beating previously provided guidance[10](index=10&type=chunk) - Operating cash flow for the second quarter was **positive $3.4 million**, beating expectations[10](index=10&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) In Q2 FY26, the QNX division reported strong performance with revenue growing 15% year-over-year to $63.1 million and adjusted EBITDA of $20.5 million. The Secure Communications division, despite a 10% year-over-year revenue decrease to $59.9 million, improved its adjusted gross margin to 66% and saw its Annual Recurring Revenue (ARR) increase. Licensing revenue was $6.6 million Q2 FY26 Segment Financial Performance | Segment | Revenue (Millions USD) | YoY Growth | Adj. Gross Margin | Adj. EBITDA (Millions USD) | | :---------------------- | :------------------- | :--------- | :---------------- | :------------------------- | | QNX | $63.1 | +15% | 83% | $20.5 | | Secure Communications | $59.9 | -10% | 66% | $9.7 | | Licensing | $6.6 | | | $5.6 | - Secure Communications ARR increased year-over-year and sequentially to **$213 million**[6](index=6&type=chunk) - Secure Communications DBNRR was flat year-over-year, and increased by **1 percentage point sequentially to 93%**[6](index=6&type=chunk) [Business Highlights & Strategic Announcements](index=2&type=section&id=Business%20Highlights%20%26%20Strategic%20Announcements) BlackBerry announced key product developments and strategic partnerships, including NVIDIA DRIVE AGX Thor integration with QNX OS for Safety 8 and BSI certification for UEM [Key Developments and Partnerships](index=2&type=section&id=Key%20Developments%20and%20Partnerships) BlackBerry announced key product developments and partnerships, including the general availability of the NVIDIA DRIVE AGX Thor development kit integrated with QNX® OS for Safety 8, and the launch of QNX OS for Safety 8. The company also achieved BSI certification for BlackBerry UEM deployment and expanded cybersecurity training in Malaysia - QNX and NVIDIA announced general availability of NVIDIA DRIVE AGX Thor development kit, integrated with **QNX® OS for Safety 8** to accelerate autonomous drive systems development[10](index=10&type=chunk) - QNX launched its foundational, safety-certified **QNX OS for Safety 8** to streamline the development and certification of safety- and security-critical embedded systems[10](index=10&type=chunk) - BlackBerry became the **first Mobile Device Management (MDM) vendor to achieve BSI certification** for BlackBerry UEM deployment with Apple Indigo and Samsung Knox[10](index=10&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) BlackBerry provided Q3 FY26 and full fiscal year 2026 guidance, projecting continued revenue growth and positive adjusted EBITDA across all segments [Q3 FY26 Guidance](index=2&type=section&id=Q3%20FY26%20Guidance) For the third fiscal quarter ending November 30, 2025, BlackBerry projects total revenue between $132-$140 million, with QNX revenue at $66-$70 million and Secure Communications revenue at $60-$64 million. Total company adjusted EBITDA is expected to be $20-$28 million Q3 FY26 Financial Guidance | Metric | Q3 FY26 Guidance (Millions USD) | | :-------------------------------------- | :----------------------------- | | Total BlackBerry Revenue | $132 - $140 | | QNX Revenue | $66 - $70 | | Secure Communications Revenue | $60 - $64 | | Licensing Revenue | Approximately $6 | | QNX Segment Adjusted EBITDA | $13 - $17 | | Secure Communications Segment Adjusted EBITDA | $12 - $16 | | Licensing Segment Adjusted EBITDA | Approximately $5 | | Total Company Adjusted EBITDA | $20 - $28 | | Non-GAAP Basic EPS | $0.02 – $0.04 | | Operating Cash Flow | $10 – $20 | [Full Fiscal Year FY26 Guidance](index=2&type=section&id=Full%20Fiscal%20Year%20FY26%20Guidance) For the full fiscal year 2026 ending February 28, 2026, BlackBerry anticipates total revenue of $519-$541 million, with QNX revenue of $256-$270 million and Secure Communications revenue of $239-$247 million. Total company adjusted EBITDA is expected to be $82-$101 million Full Fiscal Year FY26 Financial Guidance | Metric | Full FY26 Guidance (Millions USD) | | :-------------------------------------- | :------------------------------- | | Total BlackBerry Revenue | $519 - $541 | | QNX Revenue | $256 - $270 | | Secure Communications Revenue | $239 - $247 | | Licensing Revenue | Approximately $24 | | QNX Segment Adjusted EBITDA | $64 - $73 | | Secure Communications Segment Adjusted EBITDA | $38 - $48 | | Licensing Segment Adjusted EBITDA | Approximately $20 | | Total Company Adjusted EBITDA | $82 - $101 | | Non-GAAP Basic EPS | $0.11 – $0.15 | | Operating Cash Flow | $35 - $40 | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) BlackBerry's Q2 FY26 consolidated statements show improved net income, stable assets with reduced liabilities, and positive operating cash flow [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the three months ended August 31, 2025, BlackBerry reported revenue of $129.6 million, a gross margin of 74.5%, and net income of $13.3 million, resulting in basic earnings per share of $0.02. This marks a significant improvement from a net loss of $(19.7) million in the prior year period Consolidated Statements of Operations (Selected Data) | Metric | 3 Months Ended Aug 31, 2025 (Millions USD) | 3 Months Ended Aug 31, 2024 (Millions USD) | 6 Months Ended Aug 31, 2025 (Millions USD) | 6 Months Ended Aug 31, 2024 (Millions USD) | | :-------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Revenue | $129.6 | $126.2 | $251.3 | $249.6 | | Gross margin % | 74.5% | 70.2% | 74.4% | 71.6% | | Operating income (loss) | $11.5 | $2.2 | $13.5 | $(10.7) | | Net income (loss) | $13.3 | $(19.7) | $15.2 | $(61.1) | | Basic earnings (loss) per share | $0.02 | $(0.03) | $0.03 | $(0.10) | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of August 31, 2025, BlackBerry reported total assets of $1,184.1 million, a decrease from $1,295.6 million at February 28, 2025. Current assets stood at $507.2 million, while total liabilities were $459.0 million, and shareholders' equity increased slightly to $725.1 million Consolidated Balance Sheets (Selected Data) | Metric | As at Aug 31, 2025 (Millions USD) | As at Feb 28, 2025 (Millions USD) | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Total Assets | $1,184.1 | $1,295.6 | | Current Assets | $507.2 | $591.5 | | Cash and cash equivalents | $276.4 | $266.7 | | Short-term investments | $14.1 | $71.1 | | Total Liabilities | $459.0 | $575.7 | | Shareholders' Equity | $725.1 | $719.9 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended August 31, 2025, net cash used in operating activities was $(14.1) million, an improvement from $(31.1) million in the prior year. Net cash provided by investing activities was $52.8 million, while net cash used in financing activities was $(28.8) million, primarily due to common shares repurchased Consolidated Statements of Cash Flows (Selected Data) | Metric | 6 Months Ended Aug 31, 2025 (Millions USD) | 6 Months Ended Aug 31, 2024 (Millions USD) | | :-------------------------------------------------------------------------------- | :--------------------------------------- | :--------------------------------------- | | Net cash used in operating activities | $(14.1) | $(31.1) | | Net cash provided by investing activities | $52.8 | $16.6 | | Net cash provided by (used in) financing activities | $(28.8) | $1.5 | | Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period | $10.3 | $(12.8) | | Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period | $290.6 | $187.7 | - Common shares repurchased amounted to **$30.0 million** during the six months ended August 31, 2025[25](index=25&type=chunk) [Segment Results and Adjusted EBITDA Reconciliation](index=8&type=section&id=Segment%20Results%20and%20Adjusted%20EBITDA%20Reconciliation) This section details QNX, Secure Communications, and Licensing segment revenues and adjusted EBITDA for Q2 FY26 and Q2 FY25, highlighting year-over-year performance changes [Three Months Ended August 31, 2025](index=8&type=section&id=Three%20Months%20Ended%20August%2031%2C%202025) For the three months ended August 31, 2025, the QNX segment reported $63.1 million in revenue and $20.5 million in adjusted EBITDA. The Secure Communications segment had $59.9 million in revenue and $9.7 million in adjusted EBITDA, while Licensing contributed $6.6 million in revenue and $5.6 million in adjusted EBITDA Segment Performance (Q2 FY26) | Segment | Revenue (Millions USD) | Adj. Gross Margin (Millions USD) | Adj. EBITDA (Millions USD) | | :--------------------- | :--------------------- | :------------------------------- | :------------------------- | | QNX | $63.1 | $52.4 | $20.5 | | Secure Communications | $59.9 | $39.7 | $9.7 | | Licensing | $6.6 | $5.1 | $5.6 | | Total Segment Adjusted EBITDA | $35.8 | | | [Three Months Ended August 31, 2024](index=9&type=section&id=Three%20Months%20Ended%20August%2031%2C%202024) For the three months ended August 31, 2024, the QNX segment generated $54.7 million in revenue and $13.1 million in adjusted EBITDA. The Secure Communications segment reported $66.5 million in revenue and $7.4 million in adjusted EBITDA, with Licensing revenue at $5.0 million and adjusted EBITDA at $4.0 million Segment Performance (Q2 FY25) | Segment | Revenue (Millions USD) | Adj. Gross Margin (Millions USD) | Adj. EBITDA (Millions USD) | | :--------------------- | :--------------------- | :------------------------------- | :------------------------- | | QNX | $54.7 | $45.4 | $13.1 | | Secure Communications | $66.5 | $40.4 | $7.4 | | Licensing | $5.0 | $3.4 | $4.0 | | Total Segment Adjusted EBITDA | $25.0 | | | - Reconciliation of Total Segment Adjusted EBITDA to Consolidated income before income taxes for Q2 FY26 was **$13.4 million** (from **$35.8 million Adjusted EBITDA**) and for Q2 FY25 was **$4.9 million** (from **$25.0 million Adjusted EBITDA**), after various adjustments[30](index=30&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section explains BlackBerry's use of non-GAAP financial measures and provides detailed reconciliations for adjusted gross margin, net income, EPS, and EBITDA for both quarterly and half-yearly periods [Introduction to Non-GAAP Measures](index=2&type=section&id=Introduction%20to%20Non-GAAP%20Measures) BlackBerry utilizes non-GAAP financial measures to provide a consistent basis for comparison across accounting periods and to help management and readers understand the company's operating results and underlying operational trends. However, the company cautions that these non-GAAP measures may not be comparable to similarly titled measures reported by other companies - Non-GAAP financial measures provide a consistent basis for comparison across accounting periods and are useful in understanding operating results and underlying operational trends[33](index=33&type=chunk) - Readers are cautioned that non-GAAP measures do not have any standardized meaning prescribed by U.S. GAAP and are therefore unlikely to be comparable to similarly titled measures reported by other companies[34](index=34&type=chunk) - The company does not provide a reconciliation of expected Adjusted EBITDA and expected Non-GAAP basic EPS for Q3 FY26 to GAAP measures due to the inability to predict certain uncertain items like restructuring and impairment charges[11](index=11&type=chunk) [Three Months Ended August 31, 2025 and 2024](index=10&type=section&id=Three%20Months%20Ended%20August%2031%2C%202025%20and%202024) This section provides reconciliations for various non-GAAP measures for the three months ended August 31, 2025 and 2024, including adjusted gross margin, adjusted operating expense, adjusted corporate operating costs, adjusted net income, adjusted EPS, and adjusted EBITDA, detailing the impact of non-recurring and non-cash items Adjusted Gross Margin Reconciliation (Q2 FY26 vs Q2 FY25) | Metric | Aug 31, 2025 (Millions USD) | Aug 31, 2024 (Millions USD) | | :-------------------------- | :-------------------------- | :-------------------------- | | Gross margin | $96.6 | $88.6 | | Stock compensation expense | $0.6 | $0.6 | | Adjusted gross margin | $97.2 | $89.2 | | Gross margin % | 74.5% | 70.2% | | Adjusted gross margin % | 75.0% | 70.7% | Adjusted Net Income (Loss) and EPS Reconciliation (Q2 FY26 vs Q2 FY25) | Metric | Aug 31, 2025 (Millions USD) | Basic EPS | Aug 31, 2024 (Millions USD) | Basic EPS | | :-------------------------- | :-------------------------- | :-------- | :-------------------------- | :-------- | | Net income (loss) | $13.3 | $0.02 | $(19.7) | $(0.03) | | Restructuring charges | $3.4 | | $0.9 | | | Stock compensation expense | $5.9 | | $7.1 | | | Acquired intangibles amortization | $1.1 | | $8.5 | | | LLA impairment charge | $0.5 | | $0.6 | | | Adjusted net income (loss) | $24.2 | $0.04 | $(2.6) | $0.00 | Adjusted EBITDA Reconciliation (Q2 FY26 vs Q2 FY25) | Metric | Aug 31, 2025 (Millions USD) | Aug 31, 2024 (Millions USD) | | :-------------------------- | :-------------------------- | :-------------------------- | | Operating income | $11.5 | $2.2 | | Total non-GAAP adjustments to operating income | $10.9 | $8.5 | | Adjusted operating income | $22.4 | $10.7 | | Amortization (net of acquired intangibles) | $3.5 | $4.4 | | Adjusted EBITDA | $25.9 | $15.1 | | Adjusted EBITDA margin % | 20.0% | 12.0% | [Six Months Ended August 31, 2025 and 2024](index=12&type=section&id=Six%20Months%20Ended%20August%2031%2C%202025%20and%202024) This section provides reconciliations for various non-GAAP measures for the six months ended August 31, 2025 and 2024, including adjusted gross margin, adjusted operating expense, adjusted corporate operating costs, adjusted net income, adjusted EPS, and adjusted EBITDA, offering a half-year perspective on non-GAAP performance and free cash flow Adjusted Gross Margin Reconciliation (H1 FY26 vs H1 FY25) | Metric | Aug 31, 2025 (Millions USD) | Aug 31, 2024 (Millions USD) | | :-------------------------- | :-------------------------- | :-------------------------- | | Gross margin | $186.9 | $178.6 | | Stock compensation expense | $1.1 | $1.3 | | Adjusted gross margin | $188.0 | $179.9 | | Gross margin % | 74.4% | 71.6% | | Adjusted gross margin % | 74.8% | 72.1% | Adjusted Net Income (Loss) and EPS Reconciliation (H1 FY26 vs H1 FY25) | Metric | Aug 31, 2025 (Millions USD) | Basic EPS | Aug 31, 2024 (Millions USD) | Basic EPS | | :-------------------------- | :-------------------------- | :-------- | :-------------------------- | :-------- | | Net income (loss) | $15.2 | $0.03 | $(61.1) | $(0.10) | | Restructuring charges | $6.3 | | $8.2 | | | Stock compensation expense | $11.6 | | $14.8 | | | Acquired intangibles amortization | $2.8 | | $17.1 | | | LLA impairment charge | $0.6 | | $4.1 | | | Adjusted net income (loss) | $36.5 | $0.06 | $(16.9) | $(0.03) | Adjusted EBITDA and Free Cash Flow Reconciliation (H1 FY26 vs H1 FY25) | Metric | Aug 31, 2025 (Millions USD) | Aug 31, 2024 (Millions USD) | | :---------------------------------------- | :-------------------------- | :-------------------------- | | Adjusted EBITDA | $42.3 | $25.6 | | Adjusted EBITDA margin % | 17% | 10% | | Net cash provided by (used in) operating activities | $3.4 | $(16.0) | | Acquisition of property, plant and equipment | $(0.8) | $(0.5) | | Free cash flow (usage) | $2.6 | $(16.5) | [Key Metrics](index=14&type=section&id=Key%20Metrics) BlackBerry monitors Secure Communications operational metrics, including Annual Recurring Revenue (ARR) and Dollar-Based Net Retention Rate (DBNRR), to assess performance [Secure Communications Operational Metrics](index=14&type=section&id=Secure%20Communications%20Operational%20Metrics) BlackBerry monitors specific operational metrics for its Secure Communications segment, including Annual Recurring Revenue (ARR) and Dollar-Based Net Retention Rate (DBNRR), to measure current and estimated future performance, noting that these are non-standardized measures Secure Communications Key Metrics (Q2 FY26) | Metric | Aug 31, 2025 (Millions USD) | | :---------------------------------------- | :-------------------------- | | Secure Communications Annual Recurring Revenue | $213 | | Secure Communications Dollar-Based Net Retention Rate | 93% | - Readers are cautioned that Secure Communications ARR and DBNRR do not have any standardized meaning and are unlikely to be comparable to similarly titled measures reported by other companies[45](index=45&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides details on BlackBerry's Q2 FY26 conference call, an overview of the company's intelligent software and services, and important disclosures regarding forward-looking statements [Conference Call and Webcast](index=3&type=section&id=Conference%20Call%20and%20Webcast) BlackBerry hosted a conference call and live webcast on September 25, 2025, at 8:00 a.m. ET to discuss its financial results, with a replay available for those unable to attend live - A conference call and live webcast were held on **September 25, 2025**, beginning at **8:00 a.m. ET**[12](index=12&type=chunk) - A replay of the conference call was made available at approximately **11:00 a.m. ET** on the same day[13](index=13&type=chunk) [About BlackBerry](index=3&type=section&id=About%20BlackBerry) BlackBerry provides intelligent software and services to enterprises and governments, specializing in high-performance foundational software for major automakers and industrial giants. The company delivers operational resiliency through a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management - BlackBerry provides intelligent software and services that power enterprises and governments[14](index=14&type=chunk) - The company's high-performance foundational software enables major automakers and industrial giants to unlock transformative applications, drive new revenue streams, and launch innovative business models without sacrificing safety, security, and reliability[14](index=14&type=chunk) - BlackBerry delivers operational resiliency with a comprehensive, highly secure, and extensively certified portfolio for mobile fortification, mission-critical communications, and critical events management[14](index=14&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This news release contains forward-looking statements regarding BlackBerry's plans, strategies, and objectives, which are based on estimates and assumptions. These statements are subject to various factors and risks, including competition, product development, cybersecurity, and macroeconomic conditions, which could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these statements - The news release contains forward-looking statements regarding BlackBerry's plans, strategies, and objectives, identified by words like 'expect', 'anticipate', and 'estimate'[15](index=15&type=chunk)[16](index=16&type=chunk) - Forward-looking statements are based on estimates and assumptions and are subject to many factors that could cause actual results to differ materially, including competition, product development, government demand, cybersecurity, and macroeconomic conditions[16](index=16&type=chunk)[17](index=17&type=chunk) - Readers should consider these risk factors carefully and not place undue reliance on forward-looking statements, which are made only as of the date of the release and are not subject to updates unless required by law[18](index=18&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OR 12(G) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended May 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 EX ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Second Quarter Highlights](index=1&type=section&id=Second%20Quarter%20Highlights) CarMax reported a challenging Q2 FY26 with decreases in retail and wholesale unit sales and net earnings per diluted share. Despite this, the company maintained solid unit margins, initiated significant SG&A reductions, and continued share repurchases - Retail used unit sales decreased **5.4%** and comparable store used unit sales decreased **6.3%**; wholesale units decreased **2.2%**[3](index=3&type=chunk) - Solid unit margins with gross profit per retail used unit of **$2,216**, gross profit per wholesale unit of **$993**, and Extended Protection Plans (EPP) margin per retail unit of **$576**, all in line with the prior year's second quarter[3](index=3&type=chunk) - Bought **293,000** vehicles from consumers and dealers, a decrease of **2.4%**[3](index=3&type=chunk) - SG&A decreased **1.6%** to **$601.1 million**. Established plans for incremental SG&A reductions of at least **$150 million** over the next 18 months[3](index=3&type=chunk) - CarMax Auto Finance (CAF) income decreased **11.2%** to **$102.6 million** as an increase in the provision for loan losses outweighed growth in the net interest margin percentage[3](index=3&type=chunk) - Net earnings per diluted share of **$0.64** versus **$0.85** a year ago[3](index=3&type=chunk) - Repurchased **$180.0 million** in shares of common stock, continuing an accelerated quarterly pace compared to fiscal year 2025[3](index=3&type=chunk) - Launched a new brand positioning campaign, 'Wanna Drive?', emphasizing customer empowerment and the omni-channel experience[3](index=3&type=chunk) [CEO Commentary](index=2&type=section&id=CEO%20Commentary) [Strategic Outlook and Initiatives](index=2&type=section&id=Strategic%20Outlook%20and%20Initiatives) CEO Bill Nash acknowledged a challenging quarter but expressed confidence in the long-term strategy and earnings model. He highlighted the new 'Wanna Drive?' brand campaign emphasizing customer empowerment and reiterated the commitment to driving SG&A efficiency with a target of at least $150 million in incremental reductions - Expressed confidence in the long-term strategy and the strength of the earnings model[4](index=4&type=chunk) - Highlighted the recent launch of the new brand positioning campaign 'Wanna Drive?' to bring the omni-channel experience to life and empower customers[4](index=4&type=chunk) - Committed to driving SG&A efficiency, targeting at least **$150 million** in incremental SG&A reductions over the next 18 months[4](index=4&type=chunk) [Second Quarter Business Performance Review](index=2&type=section&id=Second%20Quarter%20Business%20Performance%20Review) [Sales Performance](index=2&type=section&id=Sales%20Performance) CarMax experienced a decline in combined retail and wholesale unit sales, with retail used vehicle sales decreasing by 5.4% and wholesale by 2.2%. Total retail used vehicle revenues also fell by 7.2%. The company bought fewer vehicles from consumers and dealers overall. Digital capabilities supported 80% of retail unit sales - Combined retail and wholesale used vehicle unit sales decreased **4.1%** from the prior year's second quarter to **338,031 units**[5](index=5&type=chunk) - Total retail used vehicle unit sales decreased **5.4%** to **199,729**, and comparable store used unit sales decreased **6.3%**. Total retail used vehicle revenues decreased **7.2%**[6](index=6&type=chunk) - Total wholesale vehicle unit sales decreased **2.2%** to **138,302**, with total wholesale revenues declining **0.4%**, partially offset by a **1.6%** increase in average selling price[7](index=7&type=chunk) - Bought **293,000** vehicles from consumers and dealers, down **2.4%** year-over-year[8](index=8&type=chunk) - Digital capabilities supported **80%** of retail unit sales, with omni sales at **68%** and online retail sales at **12%**[9](index=9&type=chunk) [Gross Profit Analysis](index=2&type=section&id=Gross%20Profit%20Analysis) Total gross profit decreased by 5.6% year-over-year. While gross profit per retail used unit and wholesale unit remained consistent with the prior year, the overall decline was driven by lower unit sales and a reduction in EPP revenues - Total gross profit was **$717.7 million**, down **5.6%** versus last year's second quarter[9](index=9&type=chunk) - Retail used vehicle gross profit decreased **7.6%**, but retail gross profit per used unit was **$2,216**, in line with the prior year[9](index=9&type=chunk) - Wholesale vehicle gross profit decreased **0.4%**, with gross profit per unit at **$993**, consistent with last year[10](index=10&type=chunk) - Other gross profit decreased **4.2%**, primarily reflecting a reduction in EPP revenues due to lower retail unit sales[11](index=11&type=chunk) [SG&A Expenses](index=2&type=section&id=SG%26A%20Expenses) SG&A expenses decreased by 1.6% to $601.1 million, mainly due to a reduction in share-based compensation. However, SG&A as a percentage of gross profit increased to 83.8% from 80.3% due to the decline in gross profit. The company plans for at least $150 million in SG&A reductions over the next 18 months - SG&A expenses decreased **1.6%** or **$9.5 million** to **$601.1 million**, primarily driven by a reduction in share-based compensation[12](index=12&type=chunk) - SG&A as a percent of gross profit was **83.8%** in the second quarter compared to **80.3%** in the prior year's second quarter, driven by the decline in gross profit[12](index=12&type=chunk) - Established plans for SG&A reductions of at least **$150 million** over the next 18 months, with the vast majority materializing by the end of fiscal 2027[13](index=13&type=chunk) [CarMax Auto Finance (CAF) Performance](index=3&type=section&id=CarMax%20Auto%20Finance%20(CAF)%20Performance) CAF income decreased by 11.2% to $102.6 million, primarily due to a significant increase in the provision for loan losses ($142.2 million vs. $112.6 million YoY). This increase was driven by worsening performance in 2022 and 2023 loan vintages, though these remain profitable. Underwriting standards tightened after April 2024 are performing as expected. CAF's total interest margin percentage improved to 6.6%, and it financed 42.6% of units sold - CAF income decreased **11.2%** to **$102.6 million**, as an increase in the provision for loan losses outweighed growth in CAF's net interest margin percentage[14](index=14&type=chunk) - Provision for loan losses was **$142.2 million** (vs. **$112.6 million** YoY), including a **$71.3 million** increase due to worsening performance among 2022 and 2023 vintages[14](index=14&type=chunk) - CAF's total interest margin percentage was **6.6%** of average auto loans outstanding (up **50 basis points** YoY), and CAF financed **42.6%** of units sold (up from **42.0%** YoY)[15](index=15&type=chunk) - Executed a **$900 million** non-prime securitization transaction post-quarter, expecting a gain on sale of approximately **$25 million to $30 million** in Q3 income[16](index=16&type=chunk) [Share Repurchase Activity](index=3&type=section&id=Share%20Repurchase%20Activity) CarMax repurchased 2.9 million shares of common stock for $180.0 million during Q2 FY26, continuing an accelerated pace compared to FY25. As of August 31, 2025, $1.56 billion remained available under the current authorization - Repurchased **2.9 million** shares of common stock for **$180.0 million** during the second quarter of fiscal year 2026[17](index=17&type=chunk) - As of August 31, 2025, **$1.56 billion** remained available for repurchase under the outstanding authorization[17](index=17&type=chunk) [Location Openings](index=3&type=section&id=Location%20Openings) During the second quarter of fiscal 2026, CarMax opened three new store locations and one stand-alone reconditioning/auction center - Opened **three** new store locations in Tuscaloosa, Alabama, El Cajon, California, and Hagerstown, Maryland[18](index=18&type=chunk) - Opened **one** stand-alone reconditioning/auction center located in New Kent County, Virginia[18](index=18&type=chunk) [Supplemental Financial Information](index=4&type=section&id=Supplemental%20Financial%20Information) [Sales Components](index=4&type=section&id=Sales%20Components) Total net sales and operating revenues for Q2 FY26 decreased by 6.0% to $6,594.7 million, primarily driven by a 7.2% decline in used vehicle sales and a 0.4% decline in wholesale vehicle sales. Other sales and revenues also saw a 4.2% decrease Sales Components (Three Months Ended August 31) | (In millions) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Used vehicle sales | $5,270.7 | $5,677.1 | (7.2)% | | Wholesale vehicle sales | $1,149.6 | $1,154.5 | (0.4)% | | Other sales and revenues | $174.4 | $182.0 | (4.2)% | | Total net sales and operating revenues | $6,594.7 | $7,013.5 | (6.0)% | [Unit Sales](index=4&type=section&id=Unit%20Sales) Used vehicle unit sales decreased by 5.4% to 199,729 units, and wholesale vehicle unit sales decreased by 2.2% to 138,302 units for the three months ended August 31, 2025 Unit Sales (Three Months Ended August 31) | | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Used vehicles | 199,729 | 211,020 | (5.4)% | | Wholesale vehicles | 138,302 | 141,458 | (2.2)% | [Average Selling Prices](index=4&type=section&id=Average%20Selling%20Prices) The average selling price for used vehicles decreased by 1.0% to $25,993, while the average selling price for wholesale vehicles increased by 1.6% to $7,891 for the three months ended August 31, 2025 Average Selling Prices (Three Months Ended August 31) | | 2025 $ | 2024 $ | Change | | :--- | :--- | :--- | :--- | | Used vehicles | $25,993 | $26,245 | (1.0)% | | Wholesale vehicles | $7,891 | $7,768 | 1.6 % | [Vehicle Sales Changes](index=4&type=section&id=Vehicle%20Sales%20Changes) For the three months ended August 31, 2025, used vehicle units and revenues declined by 5.4% and 7.2% respectively, while wholesale vehicle units and revenues also saw decreases of 2.2% and 0.4% Vehicle Sales Changes (Three Months Ended August 31) | | 2025 % | 2024 % | | :--- | :--- | :--- | | Used vehicle units | (5.4)% | 5.1 % | | Used vehicle revenues | (7.2)% | 1.5 % | | Wholesale vehicle units | (2.2)% | (0.3)% | | Wholesale vehicle revenues | (0.4)% | (12.7)% | [Comparable Store Used Vehicle Sales Changes](index=5&type=section&id=Comparable%20Store%20Used%20Vehicle%20Sales%20Changes) Comparable store used vehicle units decreased by 6.3% and revenues by 7.1% for the three months ended August 31, 2025, indicating a decline in sales performance at established locations Comparable Store Used Vehicle Sales Changes (Three Months Ended August 31) | | 2025 % | 2024 % | | :--- | :--- | :--- | | Used vehicle units | (6.3)% | 4.3 % | | Used vehicle revenues | (7.1)% | (0.2)% | [Used Vehicle Financing Penetration by Channel](index=5&type=section&id=Used%20Vehicle%20Financing%20Penetration%20by%20Channel) CAF's financing penetration increased slightly to 45.2% for Q2 FY26, while Tier 2 third-party financing decreased to 16.5%. Tier 3 financing saw a slight increase to 7.3%, and other financing remained stable at 31.0% Used Vehicle Financing Penetration by Channel (Three Months Ended August 31) | | 2025 % | 2024 % | | :--- | :--- | :--- | | CAF | 45.2 % | 44.6 % | | Tier 2 | 16.5 % | 17.7 % | | Tier 3 | 7.3 % | 6.7 % | | Other | 31.0 % | 31.0 % | | Total | 100.0 % | 100.0 % | [Selected Operating Ratios](index=5&type=section&id=Selected%20Operating%20Ratios) For Q2 FY26, gross profit as a percentage of net sales and operating revenues slightly increased to 10.9%, while CAF income remained stable at 1.6%. SG&A expenses as a percentage of revenues increased to 9.1%, and net earnings as a percentage of revenues decreased to 1.4% Selected Operating Ratios (Three Months Ended August 31, as % of Net Sales and Operating Revenues) | | 2025 % | 2024 % | | :--- | :--- | :--- | | Net sales and operating revenues | 100.0 | 100.0 | | Gross profit | 10.9 | 10.8 | | CarMax Auto Finance income | 1.6 | 1.6 | | Selling, general, and administrative expenses | 9.1 | 8.7 | | Earnings before income taxes | 1.9 | 2.5 | | Net earnings | 1.4 | 1.9 | [Gross Profit Details](index=6&type=section&id=Gross%20Profit%20Details) Total gross profit for Q2 FY26 decreased by 5.6% to $717.7 million. This was primarily due to a 7.6% decrease in used vehicle gross profit, while wholesale vehicle gross profit saw a minor decrease of 0.4% Gross Profit (Three Months Ended August 31) | (In millions) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Used vehicle gross profit | $442.6 | $478.8 | (7.6)% | | Wholesale vehicle gross profit | $137.3 | $137.9 | (0.4)% | | Other gross profit | $137.8 | $143.8 | (4.2)% | | Total | $717.7 | $760.5 | (5.6)% | [Gross Profit per Unit](index=6&type=section&id=Gross%20Profit%20per%20Unit) Gross profit per used vehicle unit slightly decreased to $2,216, while gross profit per wholesale vehicle unit increased to $993 for Q2 FY26. Other gross profit per unit also saw an increase to $690 Gross Profit per Unit (Three Months Ended August 31) | | 2025 $ per unit | 2024 $ per unit | | :--- | :--- | :--- | | Used vehicle gross profit per unit | $2,216 | $2,269 | | Wholesale vehicle gross profit per unit | $993 | $975 | | Other gross profit per unit | $690 | $682 | [SG&A Expenses Breakdown](index=6&type=section&id=SG%26A%20Expenses%20Breakdown) Total SG&A expenses decreased by 1.6% to $601.1 million in Q2 FY26, primarily driven by a 30.1% reduction in share-based compensation expense. Compensation and benefits excluding share-based compensation saw a slight increase of 0.6% SG&A Expenses (Three Months Ended August 31) | (In millions) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Compensation and benefits, excluding share-based compensation expense | $323.4 | $321.3 | 0.6 % | | Share-based compensation expense | $22.4 | $32.1 | (30.1)% | | Total compensation and benefits | $345.8 | $353.4 | (2.2)% | | Occupancy costs | $74.1 | $74.7 | (0.8)% | | Advertising expense | $63.7 | $63.0 | 1.2 % | | Other overhead costs | $117.5 | $119.5 | (1.7)% | | Total SG&A expenses | $601.1 | $610.6 | (1.6)% | | SG&A as a % of gross profit | 83.8 % | 80.3 % | 3.5 % | [Components of CAF Income and Other CAF Information](index=8&type=section&id=Components%20of%20CAF%20Income%20and%20Other%20CAF%20Information) CAF income decreased to $102.6 million due to a significant increase in the provision for loan losses to $142.2 million. Despite this, the total interest margin increased to $290.6 million, and the interest margin as a percentage of average auto loans outstanding improved to 6.6% Components of CAF Income (Three Months Ended August 31) | (In millions) | 2025 | 2024 | | :--- | :--- | :--- | | Interest and fee income | $489.8 | $464.5 | | Interest expense | ($199.2) | ($193.7) | | Total interest margin | $290.6 | $270.8 | | Provision for loan losses | ($142.2) | ($112.6) | | Total interest margin after provision for loan losses | $148.4 | $158.2 | | Total direct expenses | ($45.8) | ($42.6) | | CarMax Auto Finance income | $102.6 | $115.6 | Other CAF Information (Three Months Ended August 31) | | 2025 | 2024 | | :--- | :--- | :--- | | Average auto loans outstanding | $17,734.5 | $17,728.8 | | Total interest margin as a percent of average auto loans outstanding | 6.6 % | 6.1 % | | Net auto loans originated | $2,039.6 | $2,159.7 | | Net penetration rate | 42.6 % | 42.0 % | | Weighted average contract rate | 11.2 % | 11.5 % | | Ending allowance for loan losses | $507.3 | $500.8 | [Earnings Highlights](index=8&type=section&id=Earnings%20Highlights) Net earnings for Q2 FY26 decreased by 28.2% to $95.4 million, resulting in a diluted net earnings per share of $0.64, down from $0.85 in the prior year Earnings Highlights (Three Months Ended August 31) | (In millions except per share data) | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | Net earnings | $95.4 | $132.8 | (28.2)% | | Diluted weighted average shares outstanding | 149.6 | 156.5 | (4.4)% | | Net earnings per diluted share | $0.64 | $0.85 | (24.7)% | [Corporate Information and Outlook](index=9&type=section&id=Corporate%20Information%20and%20Outlook) [Conference Call Information](index=9&type=section&id=Conference%20Call%20Information) CarMax hosted a conference call for investors on September 25, 2025, with webcast replay available until December 17, 2025 - Conference call for investors held on September 25, 2025, at 9:00 a.m. ET[33](index=33&type=chunk) - A live webcast and replay are available on investors.carmax.com through December 17, 2025[33](index=33&type=chunk)[34](index=34&type=chunk) [Third Quarter Fiscal 2026 Earnings Release Date](index=9&type=section&id=Third%20Quarter%20Fiscal%202026%20Earnings%20Release%20Date) CarMax plans to release its Q3 FY26 results on Thursday, December 18, 2025, before market open, followed by an investor conference call - Results for the third quarter ending November 30, 2025, are planned for release on Thursday, December 18, 2025, before the opening of trading on the New York Stock Exchange[35](index=35&type=chunk) - A conference call for investors is planned for 9:00 a.m. ET on the release date[35](index=35&type=chunk) [About CarMax](index=9&type=section&id=About%20CarMax) CarMax is the largest used auto retailer in the U.S., known for its omni-channel experience. In FY25, the company sold approximately 790,000 used vehicles and 540,000 wholesale vehicles, with CarMax Auto Finance originating over $8 billion in loans. CarMax operates more than 250 stores and employs over 30,000 associates - CarMax is the nation's largest retailer of used autos, offering a personalized omni-channel experience[36](index=36&type=chunk) - During fiscal year ended February 28, 2025, CarMax sold approximately **790,000** used vehicles and **540,000** wholesale vehicles[36](index=36&type=chunk) - CarMax Auto Finance originated more than **$8 billion** in auto loans during fiscal 2025, adding to its nearly **$18 billion** portfolio[36](index=36&type=chunk) - CarMax has more than **250** store locations and over **30,000** associates[36](index=36&type=chunk) [Forward-Looking Statements and Risk Factors](index=9&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This section provides a cautionary note regarding forward-looking statements, highlighting that actual results may differ materially due to various risks and uncertainties. Key risk factors include changes in the competitive landscape, economic conditions, capital availability, reputation, vehicle prices, inventory, and the ability to realize benefits from strategic initiatives and manage credit losses - Statements about future business plans, operations, challenges, opportunities, or prospects are forward-looking statements[37](index=37&type=chunk) - Actual results could differ materially from anticipated results due to various risks and uncertainties[37](index=37&type=chunk) - Key risk factors include changes in the competitive landscape, general U.S. economic conditions (e.g., inflation, interest rates), availability/cost of capital, significant changes in vehicle prices, and the inability to realize benefits from omni-channel or technology initiatives (including AI)[39](index=39&type=chunk) - Other risks include greater credit losses for CAF's loan portfolio, changes in consumer credit availability, and factors related to the regulatory and legislative environment[39](index=39&type=chunk) [Investor and Media Contacts](index=11&type=section&id=Investor%20and%20Media%20Contacts) Contact information for investor relations and media inquiries is provided - Investors can contact David Lowenstein, Vice President, Investor Relations at investor_relations@carmax.com or (804) 747-0422 x7865[40](index=40&type=chunk) - Media inquiries can be directed to pr@carmax.com or (855) 887-2915[40](index=40&type=chunk) [Consolidated Financial Statements](index=12&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Earnings](index=12&type=section&id=Consolidated%20Statements%20of%20Earnings) For the three months ended August 31, 2025, CarMax reported net sales and operating revenues of $6,594.7 million, a gross profit of $717.7 million, and net earnings of $95.4 million, resulting in diluted EPS of $0.64. These figures represent a decline compared to the prior year Consolidated Statements of Earnings (Three Months Ended August 31, in thousands except per share data) | | 2025 | 2024 | | :--- | :--- | :--- | | NET SALES AND OPERATING REVENUES | $6,594,684 | $7,013,529 | | TOTAL COST OF SALES | $5,877,018 | $6,253,062 | | GROSS PROFIT | $717,666 | $760,467 | | CARMAX AUTO FINANCE INCOME | $102,638 | $115,580 | | Selling, general, and administrative expenses | $601,093 | $610,562 | | Earnings before income taxes | $127,097 | $177,844 | | Income tax provision | $31,719 | $45,035 | | NET EARNINGS | $95,378 | $132,809 | | Diluted weighted average shares | 149,637 | 156,526 | | NET EARNINGS PER SHARE: Diluted | $0.64 | $0.85 | [Consolidated Balance Sheets](index=13&type=section&id=Consolidated%20Balance%20Sheets) As of August 31, 2025, total assets were $27,079.6 million, a slight decrease from February 28, 2025. Key changes include an increase in cash and cash equivalents and auto loans held for sale, while inventory and auto loans held for investment decreased. Total liabilities also decreased, leading to a slight decrease in total shareholders' equity Consolidated Balance Sheets (As of August 31, 2025 and February 28, 2025, in thousands) | ASSETS | August 31, 2025 | February 28, 2025 | | :--- | :--- | :--- | | Cash and cash equivalents | $540,374 | $246,960 | | Auto loans held for sale | $921,928 | — | | Inventory | $3,149,570 | $3,934,622 | | Auto loans held for investment, net | $16,386,236 | $17,242,789 | | TOTAL ASSETS | $27,079,644 | $27,404,206 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | TOTAL CURRENT LIABILITIES | $2,252,036 | $2,197,971 | | TOTAL LIABILITIES | $20,879,122 | $21,161,218 | | TOTAL SHAREHOLDERS' EQUITY | $6,200,522 | $6,242,988 | | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $27,079,644 | $27,404,206 | [Consolidated Statements of Cash Flows](index=14&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended August 31, 2025, net cash provided by operating activities significantly increased to $1,085.0 million from $501.4 million in the prior year, largely due to changes in inventory and auto loans held for investment. Net cash used in investing activities increased, and net cash used in financing activities also increased, primarily due to higher share repurchases Consolidated Statements of Cash Flows (Six Months Ended August 31, in thousands) | | 2025 | 2024 | | :--- | :--- | :--- | | NET CASH PROVIDED BY OPERATING ACTIVITIES | $1,085,037 | $501,414 | | NET CASH USED IN INVESTING ACTIVITIES | ($272,466) | ($215,463) | | NET CASH USED IN FINANCING ACTIVITIES | ($467,706) | ($283,067) | | Increase in cash, cash equivalents, and restricted cash | $344,865 | $2,884 | | CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD | $1,305,175 | $1,253,294 |

"I am very pleased with our 7% growth in fiscal 2025, demonstrating our unique ability to deliver for our clients as they seek our help to reinvent and lead with AI. As clients continue to embrace reinvention to create value and drive financial results and business outcomes, they need help to build their digital core, prepare data and reimagine processes, all while training their people to work in entirely new ways. This is what Accenture does best and our strong results this year clearly illustrate our imp ...

Exhibit 99.1 Scott Jensen Investor Relations Contact 651-236-5060 NEWS September 24, 2025 H.B. Fuller Reports Third Quarter 2025 Results Reported EPS (diluted) of $1.22; Adjusted EPS (diluted) of $1.26, up 12% year-on-year Net income of $67 million; Adjusted EBITDA of $171 million, up 3% year-on-year Adjusted EBITDA margin of 19.1%, up 110 basis points year-on-year Worldwide Headquarters 1200 Willow Lake Boulevard St. Paul, Minnesota 55110-5101 ST. PAUL, Minn. – H.B. Fuller Company (NYSE: FUL) today reporte ...

[Executive Summary](index=1&type=section&id=Executive%20Summary) TD SYNNEX reported record fiscal Q3 2025 performance with significant growth in key financial metrics and strong shareholder returns, driven by effective execution and a robust portfolio [Record Fiscal 2025 Third Quarter Performance Overview](index=1&type=section&id=Record%20Fiscal%202025%20Third%20Quarter%20Performance%20Overview) TD SYNNEX reported record non-GAAP gross billings and diluted earnings per share for fiscal Q3 2025, attributing the strong performance to execution, a differentiated go-to-market strategy, and a comprehensive product and services portfolio - TD SYNNEX achieved **record non-GAAP gross billings and diluted EPS** in fiscal Q3 2025, driven by strong execution, a differentiated go-to-market strategy, and an unrivaled global portfolio[2](index=2&type=chunk) [Consolidated Financial Highlights (GAAP & Non-GAAP)](index=1&type=section&id=Consolidated%20Financial%20Highlights%20(GAAP%20%26%20Non-GAAP)) The company reported significant year-over-year growth in both GAAP and non-GAAP financial metrics for Q3 FY25, including revenue, gross profit, operating income, net income, and diluted EPS Consolidated GAAP Financial Highlights (Q3 FY25 vs Q3 FY24) | Metric | Q3 FY25 ($ Million) | Q3 FY24 ($ Million) | Net Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 15,650.9 | 14,684.7 | 6.6 % | | Gross profit | 1,129.9 | 961.0 | 17.6 % | | Gross margin | 7.22 % | 6.54 % | 68 bps | | Operating income | 383.7 | 302.9 | 26.7 % | | Operating margin | 2.45 % | 2.06 % | 39 bps | | Net income | 226.8 | 178.6 | 27.0 % | | Diluted EPS | 2.74 | 2.08 | 31.7 % | Consolidated Non-GAAP Financial Highlights (Q3 FY25 vs Q3 FY24) | Metric | Q3 FY25 ($ Million) | Q3 FY24 ($ Million) | Net Change (%) | | :--- | :--- | :--- | :--- | | Gross billings | 22,731.2 | 20,282.5 | 12.1 % | | Gross to net % | (31.1)% | (27.6)% | (350) bps | | Revenue | 15,650.9 | 14,684.7 | 6.6 % | | Gross profit | 1,129.9 | 961.0 | 17.6 % | | Gross margin | 7.22 % | 6.54 % | 68 bps | | Operating income | 474.9 | 392.9 | 20.9 % | | Operating margin | 3.03 % | 2.68 % | 35 bps | | Net income | 296.2 | 245.4 | 20.7 % | | Diluted EPS | 3.58 | 2.86 | 25.2 % | [Key Operational and Shareholder Return Highlights](index=1&type=section&id=Key%20Operational%20and%20Shareholder%20Return%20Highlights) TD SYNNEX exceeded its outlook for revenue and non-GAAP gross billings, generated strong cash flow from operations, and significantly increased shareholder returns through share repurchases and a 10% higher quarterly dividend - **Revenue of $15.7 billion**, up **6.6% YoY** (4.4% constant currency), exceeding outlook[5](index=5&type=chunk) - **Non-GAAP gross billings of $22.7 billion**, up **12.1% YoY** (10.1% constant currency), exceeding outlook[5](index=5&type=chunk) - **Cash provided by operations was $246 million**, with **free cash flow of $214 million**[5](index=5&type=chunk) - **Returned $210 million to stockholders** ($174 million in share repurchases, $36 million in dividends), and announced a **10% YoY increase in quarterly cash dividend to $0.44 per share**[5](index=5&type=chunk) [Detailed Fiscal 2025 Third Quarter Performance Analysis](index=2&type=section&id=Detailed%20Fiscal%202025%20Third%20Quarter%20Performance%20Analysis) This section provides an in-depth analysis of TD SYNNEX's Q3 FY25 consolidated and regional financial performance, highlighting revenue growth, margin improvements, and cash flow dynamics [Consolidated Performance Details](index=2&type=section&id=Consolidated%20Performance%20Details) TD SYNNEX's consolidated performance in Q3 FY25 showed robust growth across key financial metrics, with revenue increasing by 6.6% and non-GAAP gross billings by 12.1% year-over-year, both exceeding outlooks. Gross margin improved by 68 basis points, partly due to a higher percentage of sales presented on a net basis - **Revenue increased by 6.6% to $15.7 billion** (4.4% constant currency), driven by growth in Advanced Solutions and Endpoint Solutions portfolios, despite a negative 5% impact from sales mix presented on a net basis[8](index=8&type=chunk) - **Non-GAAP gross billings rose 12.1% to $22.7 billion** (10.1% constant currency)[8](index=8&type=chunk) - **Gross profit increased to $1.1 billion** from $961 million, with **gross margin improving to 7.2% from 6.5%**, positively impacted by approximately 35 basis points due to net basis revenue presentation[8](index=8&type=chunk) - **GAAP diluted EPS grew 31.7% to $2.74**, and **non-GAAP diluted EPS grew 25.2% to $3.58**[8](index=8&type=chunk) - **Cash provided by operations decreased to $246 million** from $386 million, and **free cash flow decreased to $214 million** from $339 million[8](index=8&type=chunk) - **Shareholder returns significantly increased to $210 million** from $91 million in the prior year[8](index=8&type=chunk) [Regional Performance Analysis](index=2&type=section&id=Regional%20Performance%20Analysis) TD SYNNEX reported varied regional performance, with APJ showing the strongest revenue and non-GAAP gross billings growth, followed by Europe, while Americas also contributed positively despite a negative impact from sales mix on revenue [Americas Region](index=2&type=section&id=Americas%20Region) The Americas region saw a 2.0% increase in revenue to $9.3 billion and a 9.0% increase in non-GAAP gross billings, with operating income growing by 28.4% to $284 million - **Revenue increased 2.0% to $9.3 billion** (2.0% constant currency), negatively impacted by approximately 7% due to sales mix presented on a net basis[8](index=8&type=chunk) - **Non-GAAP gross billings grew 9.0% to $14.2 billion** (9.0% constant currency)[8](index=8&type=chunk) - **Operating income rose 28.4% to $284 million**, with **non-GAAP operating income up 23.4% to $336 million**[8](index=8&type=chunk) - **Operating margin improved to 3.1% from 2.4%**, and **non-GAAP operating margin to 3.6% from 3.0%**[8](index=8&type=chunk) [Europe Region](index=2&type=section&id=Europe%20Region) Europe's revenue grew by 12.7% to $5.2 billion, and non-GAAP gross billings increased by 14.9%, with operating income rising 22.6% to $70 million - **Revenue increased 12.7% to $5.2 billion** (6.0% constant currency), negatively impacted by approximately 2% due to sales mix presented on a net basis[8](index=8&type=chunk) - **Non-GAAP gross billings grew 14.9% to $6.9 billion** (8.4% constant currency)[8](index=8&type=chunk) - **Operating income rose 22.6% to $70 million**, with **non-GAAP operating income up 14.2% to $107 million**[8](index=8&type=chunk) - **Operating margin improved to 1.4% from 1.3%**, while **non-GAAP operating margin remained stable at 2.1%**[8](index=8&type=chunk) [Asia-Pacific and Japan (APJ) Region](index=2&type=section&id=Asia-Pacific%20and%20Japan%20(APJ)%20Region) The APJ region demonstrated strong growth, with revenue increasing by 20.4% to $1.2 billion and non-GAAP gross billings surging by 29.7%, while operating income grew by 20.5% to $30 million - **Revenue increased 20.4% to $1.2 billion** (19.2% constant currency), negatively impacted by approximately 9% due to sales mix presented on a net basis[8](index=8&type=chunk) - **Non-GAAP gross billings surged 29.7% to $1.7 billion** (28.7% constant currency)[14](index=14&type=chunk) - **Operating income rose 20.5% to $30 million**, with **non-GAAP operating income up 18.5% to $31 million**[14](index=14&type=chunk) - **Operating margin remained stable at 2.5%**, while **non-GAAP operating margin slightly decreased to 2.6% from 2.7%**[14](index=14&type=chunk) [Fiscal 2025 Fourth Quarter Outlook](index=3&type=section&id=Fiscal%202025%20Fourth%20Quarter%20Outlook) TD SYNNEX provided an outlook for the fiscal 2025 fourth quarter, projecting revenue between $16.5 billion and $17.3 billion, and non-GAAP diluted EPS between $3.45 and $3.95 Q4 FY25 Financial Outlook | Metric | Q4 2025 Outlook (Range) | | :--- | :--- | | Revenue | $16.5 - $17.3 billion | | Non-GAAP gross billings | $23.0 - $24.0 billion | | Net income | $204 - $245 million | | Non-GAAP net income | $281 - $322 million | | Diluted earnings per share | $2.50 - $3.00 | | Non-GAAP diluted earnings per share | $3.45 - $3.95 | | Estimated outstanding diluted weighted average shares | 80.7 million | [Dividend Announcement](index=3&type=section&id=Dividend) TD SYNNEX's Board of Directors declared a quarterly cash dividend of $0.44 per common share, payable on October 31, 2025, to stockholders of record as of October 17, 2025 - Quarterly cash dividend declared: **$0.44 per common share**[10](index=10&type=chunk) - Payable on October 31, 2025, to stockholders of record as of October 17, 2025[10](index=10&type=chunk) [Conference Call and Webcast Information](index=3&type=section&id=Conference%20Call%20and%20Webcast) TD SYNNEX hosted a conference call on September 25, 2025, to discuss its fiscal 2025 third-quarter results, with a live audio webcast and replay available on its investor relations website - Conference call held on September 25, 2025, at 6:00 AM (PT)/9:00 AM (ET)[11](index=11&type=chunk) - Live audio webcast and replay available at ir.tdsynnex.com[11](index=11&type=chunk) [About TD SYNNEX](index=3&type=section&id=About%20TD%20SYNNEX) TD SYNNEX is a global IT ecosystem distributor and solutions aggregator, serving over 150,000 customers in 100+ countries with a comprehensive edge-to-cloud portfolio focused on high-growth technology segments like cloud, cybersecurity, AI, and IoT. The company emphasizes its commitment to corporate citizenship, diversity, and inclusion - Leading global distributor and solutions aggregator for the IT ecosystem, serving **over 150,000 customers in 100+ countries**[12](index=12&type=chunk) - Portfolio anchored in high-growth technology segments including cloud, cybersecurity, big data/analytics, AI, IoT, mobility, and everything as a service[12](index=12&type=chunk) - Committed to corporate citizenship, diversity, and inclusion[13](index=13&type=chunk) [Use of Non-GAAP Financial Information](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Information) This section clarifies the definitions and rationale behind TD SYNNEX's use of non-GAAP financial measures, explaining their exclusion of certain costs to provide a clearer view of operational performance [Non-GAAP Metrics Definitions](index=4&type=section&id=Non-GAAP%20Metrics%20Definitions) This section defines various non-GAAP financial measures used by TD SYNNEX, including non-GAAP gross billings, constant currency adjustments, gross to net percentage, adjusted selling, general and administrative expenses, non-GAAP operating income and margin, EBITDA and Adjusted EBITDA, non-GAAP net income and diluted EPS, free cash flow, and trailing fiscal four quarters return on invested capital (ROIC) - **Non-GAAP gross billings** represent amounts billed to customers before ASC Topic 606 adjustments, useful for understanding business volume[16](index=16&type=chunk) - **Constant currency adjustments** remove foreign currency translation effects to facilitate period-to-period performance comparisons[16](index=16&type=chunk) - **Non-GAAP operating income and margin, net income, and diluted EPS** exclude acquisition, integration, and restructuring costs, amortization of intangible assets, and share-based compensation expense[16](index=16&type=chunk) - **Free cash flow** is cash from operating activities minus property and equipment purchases, providing an additional liquidity measure[16](index=16&type=chunk) [Rationale for Non-GAAP Measures](index=5&type=section&id=Rationale%20for%20Non-GAAP%20Measures) TD SYNNEX uses non-GAAP financial measures to provide investors with a clearer understanding of its operational results and underlying business performance by excluding certain non-recurring or non-cash expenses like acquisition costs, intangible asset amortization, and share-based compensation - **Acquisition, integration, and restructuring costs are excluded** as they are primarily professional services, severance, and debt extinguishment fees not related to ordinary operations[17](index=17&type=chunk) - **Amortization of intangible assets is excluded** because it does not directly relate to product sales and fluctuates with acquisition activity, not underlying business performance[18](index=18&type=chunk) - **Share-based compensation expense is excluded** due to its non-cash nature, variability, and subjective assumptions, allowing for better period-to-period comparisons of operating results[19](index=19&type=chunk) - Management uses non-GAAP measures internally for business understanding, goal setting, and performance evaluation, believing they offer greater transparency for investors[20](index=20&type=chunk) [Safe Harbor Statement](index=6&type=section&id=Safe%20Harbor%20Statement) This section contains a safe harbor statement, cautioning that forward-looking statements in the news release are subject to inherent uncertainties and various risks, which may cause actual results to differ materially from expectations - Forward-looking statements are subject to inherent uncertainties and risks, which may cause actual results to differ materially from expectations[21](index=21&type=chunk) - Risks include legal proceedings, key personnel retention, economic conditions, IT spending weakness, seasonality, customer buying patterns, supplier/customer concentration, competitive conditions, and changes in tax laws, among others[22](index=22&type=chunk) [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated balance sheets, statements of operations, and cash flows, providing a comprehensive overview of the company's financial position and performance [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets present TD SYNNEX's financial position as of August 31, 2025, and November 30, 2024, showing total assets, liabilities, and stockholders' equity Consolidated Balance Sheet Highlights (August 31, 2025 vs November 30, 2024) | Metric | August 31, 2025 ($ Thousand) | November 30, 2024 ($ Thousand) | | :--- | :--- | :--- | | Total assets | 31,683,202 | 30,274,479 | | Total liabilities | 23,229,401 | 22,239,045 | | Total stockholders' equity | 8,453,801 | 8,035,434 | | Cash and cash equivalents | 874,350 | 1,059,378 | | Accounts receivable, net | 10,925,068 | 10,341,625 | | Inventories | 9,137,505 | 8,287,048 | | Current borrowings | 1,194,794 | 171,092 | | Accounts payable | 15,651,286 | 15,084,107 | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations detail the company's revenues, expenses, and net income for the three and nine months ended August 31, 2025, and 2024, reflecting growth in revenue and profitability Consolidated Statements of Operations Highlights (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Revenue | 15,650,924 | 14,684,712 | | Gross profit | 1,129,853 | 961,048 | | Operating income | 383,657 | 302,879 | | Net income | 226,795 | 178,556 | | Diluted EPS | 2.74 | 2.08 | Consolidated Statements of Operations Highlights (Nine Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Revenue | 45,128,946 | 42,607,873 | | Gross profit | 3,174,232 | 2,940,361 | | Operating income | 1,016,255 | 869,399 | | Net income | 579,253 | 494,289 | | Diluted EPS | 6.92 | 5.67 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows show the cash generated from operating, investing, and financing activities for the three and nine months ended August 31, 2025, and 2024, indicating a decrease in cash from operating activities but an overall net increase in cash and cash equivalents for the quarter Consolidated Statements of Cash Flows Highlights (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Net cash provided by operating activities | 246,141 | 385,782 | | Net cash used in investing activities | (105,679) | (80,776) | | Net cash used in financing activities | (59,366) | (637,952) | | Net increase (decrease) in cash and cash equivalents | 107,251 | (319,725) | | Cash and cash equivalents at end of period | 874,350 | 853,923 | Consolidated Statements of Cash Flows Highlights (Nine Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Net cash provided by operating activities | 71,326 | 655,783 | | Net cash used in investing activities | (176,757) | (181,573) | | Net cash used in financing activities | (185,964) | (655,436) | | Net increase (decrease) in cash and cash equivalents | (185,028) | (179,853) | | Cash and cash equivalents at end of period | 874,350 | 853,923 | [Regional Financial Highlights (Supplemental Table)](index=10&type=section&id=Regional%20Financial%20Highlights%20-%20Fiscal%202025%20Third%20Quarter) This supplemental table provides a detailed breakdown of revenue, non-GAAP gross billings, operating income, and operating margins for the Americas, Europe, and APJ regions for Q3 FY25 compared to Q3 FY24 Regional Financial Highlights (Q3 FY25 vs Q3 FY24) | Region | Metric | Q3 FY25 ($ Million) | Q3 FY24 ($ Million) | Net Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Americas** | Revenue | 9,267.9 | 9,090.0 | 2.0 % | | | Non-GAAP gross billings | 14,200.7 | 13,025.9 | 9.0 % | | | Operating income | 283.6 | 220.9 | 28.4 % | | | Non-GAAP operating income | 336.1 | 272.3 | 23.4 % | | | Operating margin | 3.06 % | 2.43 % | 63 bps | | | Non-GAAP operating margin | 3.63 % | 3.00 % | 63 bps | | **Europe** | Revenue | 5,174.8 | 4,591.2 | 12.7 % | | | Non-GAAP gross billings | 6,863.5 | 5,971.2 | 14.9 % | | | Operating income | 70.4 | 57.4 | 22.6 % | | | Non-GAAP operating income | 107.3 | 94.0 | 14.2 % | | | Operating margin | 1.36 % | 1.25 % | 11 bps | | | Non-GAAP operating margin | 2.07 % | 2.05 % | 2 bps | | **APJ** | Revenue | 1,208.2 | 1,003.5 | 20.4 % | | | Non-GAAP gross billings | 1,667.0 | 1,285.4 | 29.7 % | | | Operating income | 29.6 | 24.6 | 20.5 % | | | Non-GAAP operating income | 31.5 | 26.6 | 18.5 % | | | Operating margin | 2.45 % | 2.45 % | 0 bps | | | Non-GAAP operating margin | 2.60 % | 2.65 % | (5) bps | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20financial%20measures) This section provides detailed reconciliations between GAAP and non-GAAP financial measures, including revenue, gross billings, operating income, net income, diluted EPS, EBITDA, and free cash flow [Revenue in Constant Currency Reconciliation](index=11&type=section&id=Revenue%20in%20constant%20currency) This section reconciles GAAP revenue to revenue in constant currency for consolidated and regional results, showing the impact of foreign currency fluctuations on reported revenue for the three and nine months ended August 31, 2025 Consolidated Revenue in Constant Currency (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Revenue | 15,650,924 | 14,684,712 | | Impact of changes in foreign currencies | (315,675) | — | | Revenue in constant currency | 15,335,249 | 14,684,712 | Regional Revenue in Constant Currency (Three Months Ended August 31, FY25) | Region | Revenue ($ Thousand) | Impact of FX ($ Thousand) | Constant Currency Revenue ($ Thousand) | | :--- | :--- | :--- | :--- | | Americas | 9,267,939 | 2,093 | 9,270,032 | | Europe | 5,174,835 | (306,316) | 4,868,519 | | APJ | 1,208,150 | (11,452) | 1,196,698 | [Non-GAAP Gross Billings Reconciliation](index=12&type=section&id=Non-GAAP%20gross%20billings) This section reconciles GAAP revenue to non-GAAP gross billings for consolidated and regional results, including the impact of costs netted against revenue for third-party supplier service contracts and SaaS arrangements, and also presents non-GAAP gross billings in constant currency Consolidated Non-GAAP Gross Billings (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Revenue | 15,650,924 | 14,684,712 | | Costs netted against revenue | 7,080,243 | 5,597,768 | | Non-GAAP gross billings | 22,731,167 | 20,282,480 | | Impact of changes in foreign currencies | (401,400) | — | | Non-GAAP gross billings in constant currency | 22,329,767 | 20,282,480 | Regional Non-GAAP Gross Billings (Three Months Ended August 31, FY25) | Region | Revenue ($ Thousand) | Costs Netted Against Revenue ($ Thousand) | Non-GAAP Gross Billings ($ Thousand) | Constant Currency Non-GAAP Gross Billings ($ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Americas | 9,267,939 | 4,932,726 | 14,200,665 | 14,203,734 | | Europe | 5,174,835 | 1,688,636 | 6,863,471 | 6,471,141 | | APJ | 1,208,150 | 458,881 | 1,667,031 | 1,654,892 | [Adjusted Selling, General and Administrative Expenses Reconciliation](index=13&type=section&id=Adjusted%20selling%2C%20general%20and%20administrative%20expenses) This section reconciles GAAP selling, general and administrative (SG&A) expenses to adjusted SG&A expenses by excluding amortization of intangibles and share-based compensation, and presents these as percentages of revenue, non-GAAP gross billings, and gross profit Adjusted SG&A Expenses Reconciliation (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Selling, general and administrative expenses | 743,892 | 657,513 | | Amortization of intangibles | (76,541) | (73,173) | | Share-based compensation | (12,427) | (16,176) | | Adjusted selling, general and administrative expenses | 654,924 | 568,164 | - Adjusted SG&A expenses as a percentage of non-GAAP gross billings were **2.88% in Q3 FY25**, up from 2.80% in Q3 FY24[38](index=38&type=chunk) - Adjusted SG&A expenses as a percentage of gross profit were **58.0% in Q3 FY25**, down from 59.1% in Q3 FY24[38](index=38&type=chunk) [Non-GAAP Operating Income & Margin Reconciliation](index=14&type=section&id=Non-GAAP%20operating%20income%20%26%20non%20GAAP%20operating%20margin%20-%20Consolidated) This section provides a detailed reconciliation of GAAP operating income and margin to non-GAAP operating income and margin for consolidated results and each geographical region, by adjusting for acquisition, integration, and restructuring costs, amortization of intangibles, and share-based compensation [Consolidated Operating Income & Margin](index=14&type=section&id=Consolidated%20Operating%20Income%20%26%20Margin) Consolidated non-GAAP operating income for Q3 FY25 was $474.9 million, up 20.9% YoY, with non-GAAP operating margin improving to 3.03% from 2.68% Consolidated Non-GAAP Operating Income & Margin (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Operating income | 383,657 | 302,879 | | Acquisition, integration and restructuring costs | 2,304 | 656 | | Amortization of intangibles | 76,541 | 73,173 | | Share-based compensation | 12,427 | 16,176 | | Non-GAAP operating income | 474,929 | 392,884 | | Operating margin | 2.45 % | 2.06 % | | Non-GAAP operating margin | 3.03 % | 2.68 % | [Americas Operating Income & Margin](index=14&type=section&id=Non-GAAP%20operating%20income%20%26%20non%20GAAP%20operating%20margin%20-%20Americas) Americas non-GAAP operating income for Q3 FY25 increased to $336.1 million, up 23.4% YoY, with non-GAAP operating margin improving to 3.63% from 3.00% Americas Non-GAAP Operating Income & Margin (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Operating income | 283,647 | 220,900 | | Acquisition, integration and restructuring costs | 1,526 | 259 | | Amortization of intangibles | 42,429 | 41,459 | | Share-based compensation | 8,512 | 9,703 | | Non-GAAP operating income | 336,114 | 272,321 | | Operating margin | 3.06 % | 2.43 % | | Non-GAAP operating margin | 3.63 % | 3.00 % | [Europe Operating Income & Margin](index=14&type=section&id=Non-GAAP%20operating%20income%20%26%20non%20GAAP%20operating%20margin%20-%20Europe) Europe's non-GAAP operating income for Q3 FY25 was $107.3 million, up 14.2% YoY, with non-GAAP operating margin slightly increasing to 2.07% from 2.05% Europe Non-GAAP Operating Income & Margin (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Operating income | 70,419 | 57,415 | | Acquisition, integration and restructuring costs | 375 | 224 | | Amortization of intangibles | 33,299 | 30,896 | | Share-based compensation | 3,251 | 5,459 | | Non-GAAP operating income | 107,344 | 93,994 | | Operating margin | 1.36 % | 1.25 % | | Non-GAAP operating margin | 2.07 % | 2.05 % | [APJ Operating Income & Margin](index=15&type=section&id=Non-GAAP%20operating%20income%20%26%20non%20GAAP%20operating%20margin%20-%20APJ) APJ's non-GAAP operating income for Q3 FY25 reached $31.5 million, up 18.5% YoY, with non-GAAP operating margin slightly decreasing to 2.60% from 2.65% APJ Non-GAAP Operating Income & Margin (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Operating income | 29,591 | 24,564 | | Acquisition, integration and restructuring costs | 403 | 173 | | Amortization of intangibles | 813 | 818 | | Share-based compensation | 664 | 1,014 | | Non-GAAP operating income | 31,471 | 26,569 | | Operating margin | 2.45 % | 2.45 % | | Non-GAAP operating margin | 2.60 % | 2.65 % | [EBITDA & Adjusted EBITDA Reconciliation](index=15&type=section&id=EBITDA%20%26%20adjusted%20EBITDA) This section reconciles net income to EBITDA and Adjusted EBITDA by adding back interest, taxes, depreciation, amortization, other income/expense, acquisition/restructuring costs, and share-based compensation EBITDA & Adjusted EBITDA Reconciliation (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Net income | 226,795 | 178,556 | | Interest expense and finance charges, net | 91,188 | 80,447 | | Provision for income taxes | 66,466 | 42,358 | | Depreciation | 29,295 | 25,015 | | Amortization of intangibles | 76,541 | 73,173 | | EBITDA | 490,285 | 399,549 | | Other (income) expense, net | (792) | 1,518 | | Acquisition, integration and restructuring costs | 2,304 | 656 | | Share-based compensation | 12,427 | 16,176 | | Adjusted EBITDA | 504,224 | 417,899 | [Non-GAAP Net Income & Diluted EPS Reconciliation](index=16&type=section&id=Non-GAAP%20net%20income%20%26%20non-GAAP%20diluted%20EPS) This section reconciles GAAP net income and diluted EPS to their non-GAAP counterparts by adjusting for acquisition/restructuring costs, amortization of intangibles, share-based compensation, and their related tax effects Non-GAAP Net Income & Diluted EPS Reconciliation (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Net income | 226,795 | 178,556 | | Acquisition, integration and restructuring costs | 2,304 | 656 | | Amortization of intangibles | 76,541 | 73,173 | | Share-based compensation | 12,427 | 16,176 | | Income taxes related to the above | (21,823) | (23,122) | | Non-GAAP net income | 296,244 | 245,439 | | Diluted EPS | 2.74 | 2.08 | | Non-GAAP Diluted EPS | 3.58 | 2.86 | [Free Cash Flow Reconciliation](index=17&type=section&id=Free%20cash%20flow) This section reconciles net cash provided by operating activities to free cash flow by deducting purchases of property and equipment Free Cash Flow Reconciliation (Three Months Ended August 31) | Metric | FY25 ($ Thousand) | FY24 ($ Thousand) | | :--- | :--- | :--- | | Net cash provided by operating activities | 246,141 | 385,782 | | Purchases of property and equipment | (32,221) | (47,142) | | Free cash flow | 213,920 | 338,640 | [Non-GAAP Outlook Reconciliation](index=17&type=section&id=Non-GAAP%20net%20income%20and%20non-GAAP%20Diluted%20EPS) This section provides a reconciliation of the fiscal Q4 2025 outlook for GAAP net income and diluted EPS to their non-GAAP equivalents, adjusting for estimated amortization of intangibles, share-based compensation, and related tax effects. It also reconciles revenue to non-GAAP gross billings for the outlook period Q4 FY25 Non-GAAP Net Income & Diluted EPS Outlook Reconciliation (Range) | Metric | Low ($ Million) | High ($ Million) | | :--- | :--- | :--- | | Net income | 204 | 245 | | Amortization of intangibles | 75 | 75 | | Share-based compensation | 25 | 25 | | Income taxes related to the above | (23) | (23) | | Non-GAAP net income | 281 | 322 | | Diluted EPS | 2.50 | 3.00 | | Non-GAAP Diluted EPS | 3.45 | 3.95 | Q4 FY25 Non-GAAP Gross Billings Outlook Reconciliation (Range) | Metric | Low ($ Billion) | High ($ Billion) | | :--- | :--- | :--- | | Revenue | 16.5 | 17.3 | | Costs incurred and netted against revenue | 6.5 | 6.7 | | Non-GAAP gross billings | 23.0 | 24.0 | [Calculation of Financial Metrics](index=18&type=section&id=Calculation%20of%20Financial%20Metrics) This section details the calculation of key financial metrics, including Return on Invested Capital (ROIC) and the Cash Conversion Cycle, providing insights into the company's efficiency and liquidity [Return on Invested Capital (ROIC)](index=18&type=section&id=Return%20on%20Invested%20Capital%20(ROIC)) This section details the calculation of both GAAP ROIC and Adjusted ROIC, showing the company's efficiency in generating returns from its invested capital over the trailing fiscal four quarters ROIC Calculation (Trailing Fiscal Four Quarters) | Metric | August 31, 2025 ($ Thousand) | August 31, 2024 ($ Thousand) | | :--- | :--- | :--- | | Operating income after taxes | 1,055,734 | 921,183 | | Total invested capital (last five quarters average) | 11,515,934 | 11,249,490 | | ROIC | 9.2 % | 8.2 % | Adjusted ROIC Calculation (Trailing Fiscal Four Quarters) | Metric | August 31, 2025 ($ Thousand) | August 31, 2024 ($ Thousand) | | :--- | :--- | :--- | | Non-GAAP operating income after taxes | 1,324,702 | 1,266,719 | | Total non-GAAP invested capital (last five quarters average) | 13,186,982 | 12,616,916 | | Adjusted ROIC | 10.0 % | 10.0 % | [Cash Conversion Cycle](index=19&type=section&id=Cash%20Conversion%20Cycle) This section calculates the cash conversion cycle, a key liquidity metric, by combining days sales outstanding, days inventory outstanding, and days payable outstanding for the three months ended August 31, 2025, and 2024 Cash Conversion Cycle (Three Months Ended August 31) | Metric | FY25 (Days) | FY24 (Days) | | :--- | :--- | :--- | | Days sales outstanding | 64 | 63 | | Days inventory outstanding | 58 | 51 | | Days payable outstanding | 99 | 93 | | Cash conversion cycle | 23 | 21 |

[Executive Summary and Financial Performance](index=1&type=section&id=Executive%20Summary%20and%20Financial%20Performance) [Net Income and EPS Overview](index=1&type=section&id=Net%20Income%20and%20EPS%20Overview) Kentucky First Federal Bancorp reported net income for Q2 and FY2025, reversing prior-year losses, primarily due to the absence of a goodwill impairment charge and improved net interest income Net Income (Loss) and Diluted EPS | Period Ended June 30, | 2025 Net Income (Loss) | 2024 Net Income (Loss) | Change ($) | 2025 Diluted EPS | 2024 Diluted EPS | Change (EPS) | | :-------------------- | :--------------------- | :--------------------- | :--------- | :--------------- | :--------------- | :----------- | | Three Months | $176,000 | $(1.1) million | $1.3 million | $0.02 | $(0.13) | $0.15 | | Twelve Months | $181,000 | $(1.7) million | $1.9 million | $0.02 | $(0.21) | $0.23 | [Key Drivers of Earnings Improvement](index=1&type=section&id=Key%20Drivers%20of%20Earnings%20Improvement) Earnings improved due to no prior-year goodwill impairment, significant net interest income growth, and higher non-interest income, partially offset by increased non-interest expenses - The increase in net earnings for the quarter ended June 30, 2025, was primarily attributable to the lack of a goodwill impairment charge of **$947,000**, which had been recorded in the prior year. This charge represented **100% of previously reported goodwill** and had no impact on cash flows, liquidity, or key capital ratios[3](index=3&type=chunk) Net Interest Income Performance (Three Months Ended June 30) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------------- | :--------------- | :--------------- | :--------- | :--------- | | Net Interest Income | $2.3 million | $1.9 million | $401,000 | 21.1% | | Interest Income | $5.0 million | $4.443 million | $545,000 | 12.3% | | Interest Expense | $2.7 million | $2.541 million | $144,000 | 5.7% | | Average Rate on Assets (YoY) | 5.25% | - | +63 bps | - | | Average Rate on Liabilities (YoY) | 3.47% | - | +35 bps | - | | Net Interest Margin (QoQ) | 2.28% | - | +29 bps | - | Non-Interest Income and Expense Changes (Three Months Ended June 30) | Metric | 2025 | 2024 | Change ($) | Change (%) | | :---------------------- | :--------------- | :--------------- | :--------- | :--------- | | Non-Interest Income | $111,000 | $52,000 | $59,000 | 113.5% | | Net Gains on Sales of Loans | +$39,000 | - | - | - | | Non-Interest Expense (excl. goodwill impairment) | $2,173,000 | $2,085,000 | $88,000 | 4.2% | | Data Processing Fees | +$102,000 | - | - | - | | Outside Service Fees | -$33,000 | - | - | - | Income Tax Expense (Three Months Ended June 30) | Period Ended June 30, | 2025 Income Tax Expense | 2024 Income Tax Benefit | Change ($) | | :-------------------- | :---------------------- | :---------------------- | :--------- | | Three Months | $62,000 | $(38,000) | $100,000 | [Financial Position and Capital](index=1&type=section&id=Financial%20Position%20and%20Capital) [Balance Sheet Overview](index=1&type=section&id=Balance%20Sheet%20Overview) Total assets slightly decreased from reduced net loans, while total liabilities decreased due to lower FHLB advances, partially offset by increased deposits Key Balance Sheet Changes (YoY) | Metric | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :---------------------- | :--------------- | :--------------- | :--------------- | :--------- | | Total Assets | $371.2 million | $375.0 million | $(3.8) million | (1.0)% | | Loans, net | $327.248 million | $333.025 million | $(5.8) million | (1.7)% | | Cash and Cash Equivalents | $19.480 million | $18.287 million | $1.2 million | 6.5% | | Total Liabilities | $322.842 million | $326.971 million | $(4.1) million | (1.3)% | | FHLB Advances | $42.760 million | $68.988 million | $(26.2) million | (38.0)% | | Deposits | $277.563 million | $256.139 million | $21.4 million | 8.4% | [Shareholders' Equity and Book Value](index=2&type=section&id=Shareholders%27%20Equity%20and%20Book%20Value) Shareholders' equity and book value per share increased, driven by reduced accumulated other comprehensive loss and positive net earnings Shareholders' Equity and Book Value (YoY) | Metric | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :---------------------- | :------------ | :------------ | :--------- | :--------- | | Shareholders' Equity | $48.369 million | $47.997 million | $372,000 | 0.8% | | Book Value Per Share | $5.98 | $5.94 | $0.04 | 0.67% | - The increase in shareholders' equity was primarily associated with a **$191,000 decrease in accumulated other comprehensive loss**, as unrealized losses on the investment portfolio decreased, combined with net earnings for the period[10](index=10&type=chunk) [Company Information and Disclosures](index=2&type=section&id=Company%20Information%20and%20Disclosures) [About Kentucky First Federal Bancorp](index=2&type=section&id=About%20Kentucky%20First%20Federal%20Bancorp) Kentucky First Federal Bancorp, parent to two federal savings institutions, operates multiple Kentucky banking offices, with shares publicly traded on Nasdaq - Kentucky First Federal Bancorp (Nasdaq: KFFB) is the holding company for First Federal Savings and Loan Association of Hazard (one office in Hazard, KY) and First Federal Savings Bank of Kentucky (three offices in Frankfort, KY, two in Danville, KY, and one in Lancaster, KY)[2](index=2&type=chunk)[12](index=12&type=chunk) Shares Outstanding and Ownership (June 30, 2025) | Metric | Value | | :---------------------- | :------------ | | Shares Outstanding | 8,086,715 | | Held by First Federal MHC | Approximately 58.5% | [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This disclaimer identifies forward-looking statements and outlines risks that could cause actual results to differ, such as economic conditions, interest rates, and regulatory changes - The press release contains forward-looking statements, identified by words like 'believe,' 'expect,' 'anticipate,' and 'plan,' which are subject to safe harbors created by the Private Securities Litigation Act of 1995[11](index=11&type=chunk) - Key risks and uncertainties include general economic conditions, real estate prices, the interest rate environment, ability to execute strategy, dividend payment ability, competitive conditions, inflation, and changes in law or regulations[11](index=11&type=chunk) [Condensed Financial Statements](index=3&type=section&id=Condensed%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This table presents condensed assets, liabilities, and shareholders' equity as of June 30, 2025, and June 30, 2024, detailing key financial position changes Condensed Consolidated Balance Sheets (In thousands) | | June 30, 2025 (Unaudited) | June 30, 2024 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $19,480 | $18,287 | | Investment securities | 9,928 | 9,861 | | Loans available-for sale | 877 | 110 | | Loans, net | 327,248 | 333,025 | | Real estate acquired through foreclosure | - | 10 | | Other assets | 13,678 | 13,675 | | **Total assets** | **$371,211** | **$374,968** | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | Deposits | $277,563 | $256,139 | | FHLB advances | 42,760 | 68,988 | | Other liabilities | 2,519 | 1,844 | | **Total liabilities** | **322,842** | **326,971** | | Shareholders' equity | 48,369 | 47,997 | | **Total liabilities and shareholders' equity** | **$371,211** | **$374,968** | | Book value per share | $5.98 | $5.94 | | Tangible book value per share | $5.98 | $5.94 | [Condensed Consolidated Statements of Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20%28Loss%29) This table presents condensed consolidated income (loss) statements for the three and twelve months ended June 30, 2025, and June 30, 2024, detailing revenue, expenses, and net income (loss) Condensed Consolidated Statements of Income (Loss) (In thousands) | | Twelve months ended June 30, 2025 (Unaudited) | Twelve months ended June 30, 2024 | Three months ended June 30, 2025 (Unaudited) | Three months ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Interest income | $19,237 | $16,277 | $4,988 | $4,443 | | Interest expense | 10,896 | 9,283 | 2,685 | 2,541 | | Net interest income | 8,341 | 6,994 | 2,303 | 1,902 | | Provision for (recovery of) credit losses | 39 | 24 | 3 | 37 | | Non-interest income | 500 | 251 | 111 | 52 | | Non-interest expense | 8,564 | 9,181 | 2,173 | 3,032 | | Income (loss) before income taxes | 238 | (1,960) | 238 | (1,115) | | Income taxes | 57 | (239) | 62 | (38) | | **Net income (loss)** | **$181** | **$(1,721)** | **$176** | **$(1,077)** | | Earnings per share: Basic and diluted | $0.02 | $(0.21) | $0.02 | $(0.13) | | Weighted average outstanding shares: Basic and diluted | 8,098,715 | 8,098,715 | 8,098,715 | 8,098,715 |