Revenue Growth - Byrna Technologies reported preliminary fiscal second quarter revenues of $28.5 million, a 41% increase from $20.3 million in the same quarter last year[3]. - E-commerce sales grew by 15% year-over-year, reflecting increased brand recognition and a balanced channel mix[4]. - Dealer sales surged 106% year-over-year to $7.5 million, driven by a partnership with Sportsman's Warehouse[5]. - International sales increased by 86%, including approximately $800,000 in royalty revenue from Byrna LATAM[6]. - Byrna's total sales breakdown for Q2 2025 included $16.6 million from web sales, $7.5 million from dedicated dealers, and $3.6 million from international sales[9]. Production and Manufacturing - Byrna produced 38,237 Compact Launchers in the quarter, contributing to a total of 63,835 launchers manufactured[6]. - The company plans to transition to a steady-state production cadence of 15,000 launchers per month[8]. Future Outlook - The company anticipates maintaining momentum through the second half of 2025, supported by the CL launch and expanded marketing efforts[8]. - Byrna plans to report full financial results for the fiscal second quarter in July, accompanied by a conference call for investors and analysts[10]. Risk Management - The company emphasizes the importance of addressing potential risks that could affect future performance, including supply chain disruptions and market responses[13].

Financial Performance - Gross profit increased by 15% year-over-year to $112 million, achieving a record gross profit margin of 37.1%[1] - Income from operations rose by 133% to $27 million, while adjusted EBITDA increased by 57% to $32 million[1] - GAAP EPS increased to $0.86 from $0.22, and non-GAAP EPS increased to $0.90 from $0.38[1] - Total revenue for 3Q25 was $210.2 million, a decrease of 5.2% compared to $221.7 million in 3Q24[24] - Gross profit for 3Q25 was $43.4 million, reflecting a year-over-year increase of 5.3% and a gross profit margin of 20.7%, up 210 basis points from 18.6% in 3Q24[24] - Income from operations rose significantly by 39.2% to $17.3 million in 3Q25 compared to $12.5 million in 3Q24[24] - Adjusted EBITDA for 3Q25 was $19.3 million, a 30.1% increase from $14.9 million in 3Q24[24] - Net income for the nine months ended April 30, 2025, was $63,657,000, compared to $30,572,000 for the same period in 2024, representing a growth of 108%[42] - Net income attributable to IDT Corporation for 3Q25 was $21.7 million, a significant increase from $5.6 million in 3Q24, representing a growth of 287.5%[59] - Non-GAAP net income for 3Q25 was $22.7 million, up from $9.7 million in 3Q24, marking an increase of 134.0%[59] Revenue Segments - Recurring revenue for the National Retail Solutions (NRS) segment grew by 23% to $29.4 million, driven by a 37% increase in Merchant Services revenue[2] - BOSS Money transactions increased by 27% to 6.0 million, with revenue rising by 25% to $34.4 million[2] - Traditional Communications segment's income from operations increased by 39% to $17.3 million, and adjusted EBITDA rose by 30% to $19.3 million[2] - IDT Digital Payments revenue increased by 1.0% year-over-year to $102.6 million, while BOSS Revolution revenue decreased by 18.1% to $51.7 million[24] - NRS' recurring revenue for 3Q25 was $29.4 million, reflecting a growth rate of 23% compared to the previous year[60] - Total revenue for NRS in 3Q25 was $31.1 million, up from $25.7 million in 3Q24, representing a year-over-year increase of 21.1%[60] Cash Flow and Assets - Net cash provided by operating activities was $75.7 million in 3Q25, a substantial increase from $9.5 million in 3Q24[26] - As of April 30, 2025, IDT held $223.8 million in cash and cash equivalents, with total current assets of $498.3 million and current liabilities of $287.2 million[25] - Cash, cash equivalents, and restricted cash at the end of the period totaled $323,077,000, up from $232,845,000, marking a 39% increase[42] - Net cash provided by operating activities increased to $96,059,000 from $52,778,000 year-over-year, reflecting an increase of 82%[42] Capital Expenditures and Dividends - Capital expenditures increased to $5.4 million in 3Q25 from $4.7 million in 3Q24[27] - Capital expenditures for the nine months were $15,507,000, up from $13,621,000, indicating a 14% increase[42] - The company approved a quarterly dividend of $0.06 per share, to be paid on June 18, 2025[29] - Dividends paid increased to $4,036,000 from $1,269,000, showing a significant rise of 218%[42] Operational Metrics - Active POS terminals increased by 17.6% year-over-year to 35,600, and payment processing accounts rose by 31.1% to 25,500[12] - Digital channel send volume for BOSS Money grew by 40% year-over-year, indicating a shift towards larger send amounts per transaction[19] - The Adjusted EBITDA margin for net2phone was 26% in 3Q25, indicating strong profitability relative to sales[60] - The company's income from operations for 3Q25 was $26.6 million, compared to $28.3 million in 2Q25, reflecting a decrease of 6.0%[59] Performance Evaluation - The company's Adjusted EBITDA and Non-GAAP EPS metrics are used to provide insights into core operational strengths and performance relative to competitors[46] - The 'Rule of 40' score for the NRS segment is utilized to assess the balance between revenue growth and profitability, indicating a healthy combination for long-term success[53] - The Rule of 40 score for NRS in 3Q25 was 49%, indicating a healthy balance of growth and profitability[60] - BOSS Money's digital send volume is a key metric for evaluating operational performance in the remittance business[66] - The digital send volume reflects the aggregate amount of principal remitted by customers using BOSS Money and BOSS Revolutions apps[66] - This metric allows for performance comparison against competitors in the remittance business[66] - BOSS Money's digital channel performance can be assessed over different temporal periods using this metric[66] Stock-Based Compensation - Stock-based compensation recognized was $2,720,000 for the nine months, down from $5,375,000, reflecting a decrease of 49%[42]

Financial Performance - Net sales increased by $82.7 million or 28% in the three months ended April 30, 2025, and by $158.2 million or 28% in the six months ended April 30, 2025, primarily driven by the Marketing & Distribution segment [84]. - Total net sales for Q2 2025 were $380.3 million, an increase from $297.6 million in Q2 2024, while total net sales for the first half of 2025 were $714.5 million compared to $556.3 million in the same period last year [108]. - Net sales in the Marketing & Distribution segment increased by $75.4 million or 26% for the three months ended April 30, 2025, compared to the same period last year [114]. - Net sales in the Blueberries segment increased by $5.7 million or 57% for the three months ended April 30, 2025, primarily due to higher volume from increased acreage and yields [118]. Profitability and Expenses - Gross profit decreased by $2.6 million or 8% in the three months ended April 30, 2025, to $28.4 million, with gross profit percentage decreasing to 7.5% of revenue [90]. - SG&A expenses increased by $2.8 million or 15% in the three months ended April 30, 2025, and by $4.3 million or 11% in the six months ended April 30, 2025, primarily due to higher employee-related costs [93]. - Other expense was $0.6 million in Q2 2025 compared to other income of $1.0 million in Q2 2024, driven by foreign currency transaction losses from a weakening U.S. dollar against the Mexican peso [100]. - Total adjusted EBITDA for Q2 2025 was $19.1 million, a decrease from $20.2 million in Q2 2024, while total adjusted EBITDA for the first half of 2025 was $36.8 million compared to $39.4 million in the same period last year [109]. - Marketing & Distribution adjusted EBITDA for Q2 2025 was $16.8 million, down from $21.7 million in Q2 2024, and for the first half of 2025 it was $26.5 million compared to $32.7 million in the same period last year [109]. - Segment adjusted EBITDA for the Blueberries segment decreased by $2.4 million or 26% for the six months ended April 30, 2025, primarily due to lower per-unit margins [121]. International Operations - Gross profit at the International Farming segment increased due to higher pricing and yield from owned mango orchards [91]. - The International Farming segment's sales are concentrated in the second half of the fiscal year, aligning with the Peruvian avocado harvest season [76]. - Adjusted EBITDA for the International Farming segment increased by $3.7 million or 168% for the three months ended April 30, 2025, driven by higher pricing and yield from mango orchards [117]. - Equity method income increased by $0.4 million or 80% in Q2 2025 and by $0.8 million or 89% in the first half of 2025, primarily due to improved margins on fruit sold by Mr. Avocado in China [98]. Cash Flow and Liquidity - Net cash used in operating activities was $13.0 million for the six months ended April 30, 2025, compared to cash provided of $12.9 million in the same period last year, largely due to growth in working capital [123]. - The company’s liquidity includes cash and cash equivalents of $36.7 million as of April 30, 2025, down from $58.0 million as of October 31, 2024 [131]. - Outstanding borrowings on the syndicated debt facility totaled $147.5 million as of April 30, 2025 [136]. - The company was in compliance with all financial covenants of the credit facility as of April 30, 2025 [133]. Taxation and Regulatory Environment - Provision for income taxes decreased by $1.7 million or 50% in Q2 2025 and by $0.6 million or 11% in the first half of 2025, primarily due to lower income before taxes [105]. - The effective tax rate for Q2 2025 was 36.2%, compared to 32.7% in Q2 2024, and for the first half of 2025 it was 34.8% compared to 37.9% in the same period last year [105]. - The company continues to monitor regulatory changes and their impact on pricing strategies due to potential future trade policy changes [77]. Interest and Charges - Interest expense for the period primarily consisted of interest on borrowings under working capital facilities and long-term debt [95]. - Interest expense decreased by $0.9 million or 26% in Q2 2025 compared to Q2 2024, and by $2.0 million or 30% in the first half of 2025 compared to the same period last year, due to lower average balances on the revolving line of credit and lower interest rates [96]. - The company incurred $1.5 million in charges related to the closure of Canadian distribution centers during the first quarter of 2025 [78]. - The company recognized $1.1 million in tariffs on Mexican imports during a brief tariff application period in March 2025 [75].

Financial Performance - Total net revenue decreased 5% to $1.090 billion from $1.144 billion, with American Eagle revenue decreasing 4% and Aerie revenue decreasing 3% year-over-year [144]. - Gross profit decreased 31% to $322 million year-over-year, resulting in a gross margin of 29.6% compared to 40.6% last year [149]. - Operating loss of $85 million compared to operating income of $77 million last year, with an adjusted operating loss of $68 million this year [144]. - Comparable sales for American Eagle decreased 2% year-over-year, while Aerie's comparable sales decreased 4% year-over-year [144]. - Total comparable sales decreased by 3%, compared to a 7% increase last year [146]. - Net loss income was $64.9 million, or 6.0% of net revenue, compared to a net income of $67.8 million, or 5.9% of net revenue, representing a 196% decrease [163]. - Total operating loss was $85.2 million, a decrease of $163.0 million compared to an operating income of $77.8 million in the same period last year, reflecting a 209% decline [156]. Inventory and Charges - The company incurred a $75 million inventory charge related to a write-down of spring and summer merchandise [142]. - Impairment and restructuring charges amounted to $17.1 million, representing 1.6% of net revenue, a significant increase from 0.0% in the prior year [154]. Revenue Sources - Digital revenue decreased 2%, and store revenue decreased 6% during the reported period [146]. Store Operations - The number of stores at the end of the period increased to 1,176 from 1,173, with 6 stores opened and 2 closed [143]. - International licensed retail stores increased to 363 from 315 year-over-year [143]. - The company operated 363 licensed retail stores and concessions internationally as of May 3, 2025, across approximately 30 countries [168]. - The company remodeled 13 stores and opened 6 new stores during the 13 weeks ended May 3, 2025 [181]. Cash Flow and Liquidity - Cash flow and liquidity are expected to be sufficient to fund anticipated capital expenditures and working capital requirements for the next twelve months and beyond [137]. - Cash and cash equivalents decreased by $221.1 million for the 13 weeks ended May 3, 2025, compared to a decrease of $53.6 million in the same period last year [172]. - Total cash used in operating activities was $(54.7) million for the 13 weeks ended May 3, 2025, compared to $(38.1) million in the prior year, reflecting an increase in cash outflow of $16.6 million [172]. Capital Expenditures and Financing - For the 13 weeks ended May 3, 2025, capital expenditures totaled $61.6 million, a 70% increase from $36.2 million in the same period last year [180]. - The company expects capital expenditures for Fiscal 2025 to be approximately $275 million to support expansion efforts and technology upgrades [180]. - Cash used for financing activities for the 13 weeks ended May 3, 2025, included $201.5 million for stock repurchases under the ASR Agreement [175]. - The company repurchased approximately 0.7 million shares for $7.9 million during the 13 weeks ended May 3, 2025 [185]. - The company entered into an accelerated share repurchase agreement to repurchase $200 million of its common stock, with an initial delivery of approximately 14.5 million shares [184]. Shareholder Returns - The Board declared a quarterly cash dividend of $0.125 per share, paid on April 25, 2025 [186]. - The company has 54.0 million shares remaining authorized for repurchase through February 3, 2029 [183]. Other Financial Metrics - Interest income decreased by $3.2 million, or 94%, to $(0.2) million for the 13 weeks ended May 3, 2025, compared to $(3.4) million in the prior year [160]. - The effective tax rate increased to 23.3% for the 13 weeks ended May 3, 2025, compared to 18.0% for the same period in 2024 [162]. - An unrealized gain of $14 million was included in accumulated other comprehensive income for the 13 weeks ended May 3, 2025, due to foreign exchange rate risk [189]. - As of May 3, 2025, the company had $110.0 million in borrowings and $12.0 million in stand-by letters of credit under its Credit Facility [179].

Financial Performance - The company reported a net loss of $1,978,165 for Q1 2025, an increase of 116% compared to a net loss of $916,753 in Q1 2024[118]. - General and administrative expenses rose to $1,994,227 in Q1 2025, up 118% from $916,249 in Q1 2024, primarily due to increased salaries and wages[118]. - Salaries and wages increased by $1,085,536 (218%) in Q1 2025, largely due to stock-based compensation[120]. Cash Position - Cash on hand as of March 31, 2025, totaled $295,368, reflecting an increase of $166,050 from $129,318 at the end of the previous fiscal year[124]. - Net cash provided by financing activities was $715,553 in Q1 2025, primarily from new equity issuances and crowdfunding[130]. Business Development - The company installed third-generation Arrive Points ("AP3" units) in Q4 2024, which began revenue operations in 2025[107]. - The company plans to leverage machine learning and artificial intelligence for data monetization, enhancing operational efficiencies[108][109]. - The company has secured pilot programs with significant customers, indicating early market penetration and validation of its business model[112]. Market Activity - The S-1 Registration Statement was declared effective on May 13, 2025, registering 29,978,212 shares of common stock[113]. - The company's common stock began trading on the Nasdaq Global Market under the ticker "ARAI" on May 15, 2025[114].

Financial Performance - Consolidated net sales for Q3 2025 reached $115.5 million, an 8% increase year-over-year, marking the 16th consecutive quarter of sales growth[7] - Net income for Q3 2025 was $11.6 million, reflecting a 50% increase compared to the same period last year[12] - EBITDA increased by 35% to $20.2 million in Q3 2025, demonstrating strong operational performance[12] - Consolidated gross profit for Q3 2025 was $33.0 million, a 10% increase over the prior year, with gross margins at 28.6%[8] - Operating income increased to $13.9 million, a 33% rise compared to the previous year, driven by improved sales and lower SG&A expenses[10] - Net sales for the nine months ended April 30, 2025, increased to $360,360,000, representing a 11.3% growth from $323,885,000 in 2024[29] - Gross profit margin improved to 30.0% in 2025, up from 28.4% in 2024, with gross profit rising to $108,250,000[29] - Operating income increased by 35.6% to $52,576,000, compared to $38,753,000 in the previous year, reflecting an operating margin of 14.6%[29] - Net income for the nine months ended April 30, 2025, was $40,941,000, a 32.5% increase from $30,901,000 in 2024, resulting in a net income margin of 11.4%[29] - EBITDA for the year to date ended April 30, 2025, was $68,631,000, compared to $51,614,000 in 2024, reflecting strong operational performance[32] Revenue Breakdown - The Business to Business (B2B) Products Group reported revenues of $42.7 million, an 18% increase year-over-year, driven by strong agricultural and fluids purification product sales[14] - The Retail and Wholesale (R&W) Products Group's revenues reached $72.8 million, a 3% increase, with $4.8 million contributed from the acquisition of Ultra Pet[16] Cash and Assets - Cash and cash equivalents grew to $36.5 million as of April 30, 2025, up from $23.5 million at the end of fiscal year 2024[13] - Cash and cash equivalents rose to $36,475,000 as of April 30, 2025, compared to $23,481,000 as of July 31, 2024, indicating improved liquidity[30] - Total assets increased to $369,543,000 as of April 30, 2025, up from $354,605,000 as of July 31, 2024[30] - Net cash provided by operating activities for the nine months ended April 30, 2025, was $54,988,000, significantly higher than $36,929,000 in 2024[31] Dividends and Shareholder Value - The company paid dividends totaling $6,290,000 during the nine months ended April 30, 2025, compared to $5,848,000 in the previous year[31] - Book value per share outstanding increased to $17.79 as of April 30, 2025, up from $15.35 as of July 31, 2024[30] Cost and Tax - The company experienced a 5% increase in domestic cost of goods sold per ton due to higher material and freight costs[8] - The effective tax rate decreased to 18% in Q3 2025 from 23% in the same period last year, primarily due to higher pre-tax income[11]

Financial Performance - Total revenue for the second quarter of fiscal 2025 increased by $82.7 million or 28% to $380.3 million compared to the same period last year[4]. - Net income for the second quarter was $3.1 million, or $0.04 per diluted share, down from $7.0 million, or $0.10 per diluted share, for the same period last year[9]. - Adjusted EBITDA for the second quarter was $19.1 million, a decrease of $1.1 million or 5% compared to $20.2 million in the prior year period[10]. - Net income attributable to Mission Produce for the three months ended April 30, 2025, was $3.1 million, down from $7.0 million in the same period of 2024[34]. - Adjusted net income for Q2 2025 was $8.7 million, a decrease of 11.2% from $9.8 million in Q2 2024[42]. - The company reported a net income of $3.0 million for Q2 2025, down from $7.0 million in Q2 2024, representing a decline of 57.1%[48]. Sales and Revenue Breakdown - The Marketing & Distribution segment net sales increased by $75.4 million or 26% to $362.5 million, driven by higher avocado pricing[11]. - International Farming segment sales increased by $6.7 million or 479% to $8.1 million, with adjusted EBITDA rising to $1.5 million from negative $2.2 million[13]. - Blueberries segment net sales increased by 57% to $15.7 million, primarily due to higher volume driven by increased acreage and yields[14]. - Avocado sales for Q2 2025 amounted to $332.6 million, a 24.3% increase compared to $267.5 million in Q2 2024[57]. - Total net sales for the six months ended April 30, 2025, were $714.5 million, compared to $556.3 million for the same period in 2024, marking a 28.4% increase[55]. - Total segment sales for the six months ended April 30, 2025, reached $727.7 million, up 29.6% from $561.4 million in the same period of 2024[55]. Cash and Assets - Cash and cash equivalents were $36.7 million as of April 30, 2025, down from $58.0 million as of October 31, 2024[16]. - Total assets increased to $1,010.5 million as of April 30, 2025, compared to $971.5 million as of October 31, 2024[32]. - Total liabilities rose to $426.2 million as of April 30, 2025, up from $394.4 million as of October 31, 2024[32]. - The company reported a net cash used in operating activities of $13.0 million for the six months ended April 30, 2025, compared to net cash provided of $12.9 million in the same period of 2024[36]. - The company invested $28.0 million in property, plant, and equipment during the six months ended April 30, 2025[36]. Operational Metrics - Operating income for the six months ended April 30, 2025, was $16.2 million, down from $20.3 million in the same period of 2024[34]. - The company sold 166.4 million pounds of avocados in Q2 2025, a slight decrease from 168.6 million pounds in Q2 2024[56]. - The average sales price per pound of avocados increased to $2.00 in Q2 2025 from $1.59 in Q2 2024, reflecting a 25.8% rise[56]. Future Outlook - For the third quarter of fiscal 2025, industry volumes are expected to be approximately 10-15% higher, with exportable avocado production from owned farms in Peru expected to range between 100 million to 110 million pounds[27]. - Total capital expenditures for fiscal 2025 are expected to remain in the range of $50 to $55 million[27]. Other Notable Information - The company executed $5.2 million in share repurchases during the quarter, reflecting a belief that the share price was undervalued[3]. - The company incurred $1.1 million in tariff charges during a three-day period in March 2025, which impacted pricing strategies[44]. - Gross profit for the six months ended April 30, 2025, was $59.9 million, slightly up from $59.7 million in the same period of 2024[34]. - Adjusted EBITDA for Q2 2025 was $19.1 million, a decrease of 5.4% from $20.2 million in Q2 2024[48]. - The weighted average shares of common stock outstanding for diluted earnings per share were 71,105,463 for the three months ended April 30, 2025[34].

Financial Performance - Broadcom reported record second quarter revenue of $15,004 million, a 20% increase year-over-year [4]. - Adjusted EBITDA for Q2 was $10,001 million, representing 67% of revenue, up 35% year-over-year [4]. - GAAP net income for Q2 was $4,965 million, a 134% increase from the previous year [5]. - Non-GAAP net income for Q2 was $7,787 million, up 44% year-over-year [5]. - Net revenue for the fiscal quarter ended May 4, 2025, was $15,004 million, a 12.1% increase from $12,487 million in the same quarter last year [22]. - Gross margin for the fiscal quarter was $10,197 million, representing a 30.5% increase compared to $7,776 million in the same quarter last year [22]. - Operating income for the fiscal quarter was $5,829 million, up 96.3% from $2,965 million in the same quarter last year [22]. - Basic income per share from continuing operations was $1.05, compared to $0.46 in the same quarter last year, reflecting a 128.3% increase [22]. - Non-GAAP net income for the same quarter was $7,787 million, compared to $7,823 million in the prior quarter, reflecting a slight decline [26]. - Adjusted EBITDA for the quarter was $10,001 million, down from $10,083 million in the previous quarter [26]. Cash Flow and Shareholder Returns - Free cash flow reached a record $6,411 million, up 44% year-over-year, constituting 43% of revenue [4]. - The company returned $7.0 billion to shareholders in Q2 through $2.8 billion in cash dividends and $4.2 billion in stock repurchases [3]. - Cash and cash equivalents at the end of the quarter were $9,472 million, compared to $9,307 million at the end of the prior quarter [5]. - Net cash provided by operating activities increased to $6,555 million compared to $6,113 million in the previous quarter [32]. - Payments of dividends were $2,785 million, slightly up from $2,774 million in the previous quarter [32]. - The company had net cash used in investing activities of $133 million, compared to $174 million in the previous quarter [32]. - The company repurchased common stock for $2,450 million under its repurchase program [32]. Guidance and Future Expectations - AI semiconductor revenue grew 46% year-over-year to over $4.4 billion, with expectations to reach $5.1 billion in Q3 [3]. - Third quarter revenue guidance is approximately $15.8 billion, reflecting a 21% increase from the prior year [8]. Expenses and Liabilities - Research and development expenses for the fiscal quarter were $2,693 million, an increase from $2,415 million in the same quarter last year [22]. - Total operating expenses for the fiscal quarter were $4,368 million, a decrease from $4,811 million in the same quarter last year [22]. - The company reported stock-based compensation expense of $1,771 million for the fiscal quarter, compared to $1,403 million in the same quarter last year [25]. - Total liabilities decreased to $95,044 million from $97,967 million, indicating improved financial stability [30]. - Long-term debt decreased to $61,751 million from $66,295 million, indicating a reduction in leverage [30]. Inventory and Assets - Total current assets increased to $22,181 million from $19,595 million in the previous reporting period [30]. - Cash and cash equivalents rose to $9,472 million, up from $9,348 million, indicating strong liquidity [30]. - Inventory levels increased to $2,017 million from $1,760 million, suggesting potential growth in sales or production [30].

Revenue and Profitability - Revenue for Q1 2025 was $69.6 million, a decrease of 7.2% year-over-year from $75.0 million in Q1 2024[8] - Gross Profit was $21.9 million, down 22.9% from $28.4 million in Q1 2024, with a Gross Margin of 31.5% compared to 37.9% in Q1 2024[8] - Net Loss for Q1 2025 was $(26.1) million, compared to $(22.0) million in Q1 2024, representing a net loss as a percentage of revenue of (37.5)%[8] - Adjusted EBITDA was $(1.3) million, down from $6.5 million in Q1 2024, with an Adjusted EBITDA Margin of (1.9)%[8] - Total revenue for the three months ended April 30, 2025, was $69.6 million, a decrease of 7.2% from $75.0 million in the same period of 2024[29] - Net loss for the three months ended April 30, 2025, was $26.1 million, compared to a net loss of $22.0 million in the same period of 2024, representing a 18.6% increase in losses[29] - Adjusted EBITDA for the three months ended April 30, 2025, was $(1.3) million, a significant decline from $6.5 million in the same period of 2024[35] - Adjusted EBITDA margin for the three months ended April 30, 2025, was (1.9)%, down from 8.7% in the same period of 2024[35] Subscriber Metrics - Active Subscribers at the end of Q1 2025 reached 147,157, an increase of 1% from 145,837 in Q1 2024[8] - Average Active Subscribers decreased by 2% to 133,468 from 135,896 in Q1 2024[8] - The company anticipates double-digit growth in ending Active Subscribers for fiscal year 2025 compared to fiscal year 2024[11] Inventory and Customer Engagement - New inventory strategy led to a 24% increase in new inventory receipts in Q1 2025 versus Q1 2024, with expectations of a 134% year-over-year increase for the remainder of the year[4] - Customer engagement metrics improved, with 23% higher share of views and 46% more hearts for Spring 2025 inventory compared to Spring 2024[7] Cash Flow and Assets - Total current assets decreased to $87.1 million as of April 30, 2025, from $93.9 million as of January 31, 2025[27] - Total liabilities increased to $452.4 million as of April 30, 2025, compared to $422.5 million as of January 31, 2025[27] - Cash and cash equivalents at the end of the period were $70.4 million, down from $77.4 million at the beginning of the period[27] - Free cash flow for the three months ended April 30, 2025, was $8.3 million, compared to $4.6 million in the same period of 2024[31] - Net cash provided by operating activities increased to $8.3 million in Q2 2025 from $4.6 million in Q2 2024[37] Future Outlook - The company expects revenue for Q2 2025 to be between $76 million and $80 million[11] Costs and Expenses - Total costs and expenses for the three months ended April 30, 2025, were $89.3 million, a slight decrease from $91.5 million in the same period of 2024[29] - Free Cash Flow for Q2 2025 was $(6.4) million, compared to $(1.4) million in Q2 2024[37] - Free Cash Flow Margin decreased to (9.2)% in Q2 2025 from (1.9)% in Q2 2024[37] - Purchases of rental products rose to $(19.3) million in Q2 2025 from $(13.1) million in Q2 2024[37] - Proceeds from the sale of rental products decreased to $4.9 million in Q2 2025 from $6.8 million in Q2 2024[37] - Proceeds from the liquidation of rental products were $0.9 million in Q2 2025, down from $1.1 million in Q2 2024[37] - Purchases of fixed and intangible assets increased to $(1.2) million in Q2 2025 from $(0.8) million in Q2 2024[37]

Revenue and Growth - Revenue for Q1 fiscal 2026 was $763.7 million, an 8% year-over-year increase, with subscription revenue at $746.2 million, also an 8% increase [6]. - Billings increased to $739.6 million, representing a 4% year-over-year growth [6]. - Total revenue for the three months ended April 30, 2025, was $763,654,000, an increase from $709,640,000 in the same period of 2024, representing a growth of approximately 7.6% [31]. - Subscription revenue reached $746,202,000, up from $691,483,000 year-over-year, indicating a growth of about 7.9% [31]. - Revenue for Q2 2025 reached $763,654,000, a 7.6% increase from $709,640,000 in Q2 2024 [46]. Profitability - GAAP net income per diluted share was $0.34, compared to $0.16 in the same period last year, reflecting a significant improvement [6]. - Non-GAAP net income per diluted share rose to $0.90, up from $0.82 year-over-year [6]. - Net income for the quarter was $72,087,000, significantly higher than $33,760,000 in the same quarter of 2024, marking an increase of approximately 113.0% [31]. - Basic net income per share rose to $0.35 from $0.16, representing a growth of 118.8% [31]. - GAAP net income for Q2 2025 was $72,087,000, compared to $33,760,000 in Q2 2024, representing a 113% increase [44]. - Non-GAAP net income attributable to common stockholders for Q2 2025 was $190,851,000, up from $172,843,000 in Q2 2024, reflecting an increase of 10.4% [44]. Cash Flow and Financial Position - Free cash flow for the quarter was $251,439,000, slightly down from $254,826,000 in the previous year [36]. - Non-GAAP free cash flow for Q2 2025 was $227,815,000, slightly down from $232,073,000 in Q2 2024 [45]. - The company reported cash, cash equivalents, and investments totaling $1.1 billion at the end of the quarter [6]. - Total assets decreased to $3,947,403,000 from $4,012,705,000 as of January 31, 2025 [33]. - Total liabilities decreased to $1,932,601,000 from $2,010,013,000, indicating improved financial health [33]. Guidance and Projections - The guidance for the quarter ending July 31, 2025, projects total revenue between $777 million and $781 million [12]. - For the fiscal year ending January 31, 2026, total revenue is expected to be between $3,151 million and $3,163 million [13]. - The projected non-GAAP tax rate for fiscal 2025 and 2026 is set at 20% [25]. Operational Highlights - Docusign's Intelligent Agreement Management platform surpassed 10,000 customers, indicating strong market adoption [3]. - New AI-driven features, including AI Contract Agents, are expected to launch later this year, enhancing the platform's capabilities [7]. Expenses and Margins - Non-GAAP gross profit for the quarter was $628,727,000, compared to $582,170,000 in the prior year, reflecting an increase of approximately 8.0% [39]. - Non-GAAP gross margin improved to 82.3% from 82.0% year-over-year [39]. - GAAP operating margin improved to 7.9% in Q2 2025 from 3.2% in Q2 2024 [42]. - Non-GAAP operating margin for Q2 2025 was 29.5%, compared to 28.5% in Q2 2024 [42]. - GAAP sales and marketing expenses for Q2 2025 were $296,413,000, up from $281,644,000 in Q2 2024, with a percentage of revenue decreasing from 39.7% to 38.8% [41]. - Non-GAAP research and development expenses for Q2 2025 were $99,935,000, compared to $87,553,000 in Q2 2024, with a percentage of revenue increasing from 12.3% to 13.1% [41]. Shareholder Returns - The company announced a $1.0 billion increase to its stock repurchase program, bringing the total remaining authorization to $1.4 billion [11].