Revenue Growth - Total revenue for Q3 2025 was $83.5 million, a 117% increase from $38.4 million in Q3 2024[5] - Prenatal clinical testing revenue reached $74.1 million, up 102% year-over-year, while oncology clinical testing revenue surged to $8.7 million, a 664% increase compared to $1.1 million in the same period last year[5] - The company expects full-year 2025 revenue to be between $293 million and $299 million, representing a growth of 92% to 96% compared to 2024[12] - Fourth quarter 2025 revenue is projected to be between $84 million and $90 million, indicating an 86% to 100% growth compared to Q4 2024[12] Profitability - Gross margin improved to 70% in Q3 2025, up from 53% in Q3 2024, reflecting a 17 percentage-point increase year-over-year[5] - Operating income was $9.6 million in Q3 2025, a significant turnaround from an operating loss of $12.6 million in Q3 2024[10] - Net income available to common shareholders for Q3 2025 was $1.5 million, or $0.10 per diluted share, compared to a net loss of $14.9 million, or ($1.47) per diluted share, in Q3 2024[10] - Positive cash flow of $6.2 million was reported in Q3 2025[5] Asset and Liability Management - Total assets increased to $327,521 million as of September 30, 2025, up from $302,059 million on December 31, 2024, representing an increase of 8.5%[19] - Total current assets rose to $251,716 million, compared to $227,817 million at the end of 2024, marking an increase of 10.5%[19] - Total liabilities increased to $147,625 million from $134,306 million, reflecting a rise of 9.9%[19] - Cash and cash equivalents grew to $195,152 million, up from $191,477 million, indicating a 3.5% increase[19] - Accounts receivable surged to $34,646 million, a significant increase from $24,709 million, representing a growth of 40.2%[19] - Inventories increased to $17,389 million, compared to $8,733 million, showing a substantial rise of 99.0%[19] - Long-term debt rose to $54,986 million, up from $51,481 million, which is an increase of 10.0%[19] Stockholder Equity - Total stockholders' deficit improved to $(239,513) million from $(251,656) million, indicating a reduction of 4.8%[19] - Additional paid-in capital increased to $41,211 million from $30,545 million, reflecting a growth of 35.0%[19] - Accumulated deficit slightly improved to $(280,724) million from $(282,201) million, showing a minor reduction of 0.5%[19] Testing Volume - Total tests accessioned in Q3 2025 were 162,900, a 51% increase from 107,900 tests in Q3 2024[7] IPO and Funding - The company raised gross proceeds of $314.0 million from its initial public offering[11]

Financial Performance - Net sales for the three months ended November 1, 2025, were $752,411,000, a decrease of 3.2% compared to $777,194,000 for the same period in 2024[11] - Gross profit for the three months ended November 1, 2025, was $339,619,000, slightly up from $333,815,000 in the prior year, resulting in a gross margin of 45.1%[11] - Net income attributable to Designer Brands Inc. for the three months ended November 1, 2025, was $18,215,000, representing a 40.0% increase from $13,012,000 in the same period of 2024[11] - Basic earnings per share for the three months ended November 1, 2025, increased to $0.37 from $0.25 in the prior year, reflecting a 48.0% growth[11] - Comprehensive income for the three months ended November 1, 2025, was $18,008,000, compared to $12,687,000 in the same period of 2024, reflecting a 42.0% increase[12] - Operating profit for the three months ended November 1, 2025, was $42,663,000, significantly higher than $22,816,000 in the prior year, indicating an increase of 87.0%[11] - For the nine months ended November 1, 2025, consolidated net sales were $2,179,082,000, compared to $2,295,690,000 for the same period last year, indicating a decline of approximately 5.1%[66][67] - Gross profit for the nine months ended November 1, 2025, was $957.7 million, a decrease of 4.6% compared to $1.00 billion last year[90] Assets and Liabilities - Total assets as of November 1, 2025, were $2,052,989,000, compared to $2,080,764,000 as of November 2, 2024, indicating a decrease of 1.3%[14] - Current liabilities totaled $610,261,000 as of November 1, 2025, up from $567,611,000 a year prior, marking a 7.5% increase[14] - Total debt decreased to $473,989,000 as of November 1, 2025, from $496,465,000 on February 1, 2025, reflecting a reduction of about 4.1%[55] - Total receivables as of November 1, 2025, were $64.4 million, an increase from $50.4 million at the end of the previous quarter[50] Cash Flow - Cash and cash equivalents increased to $51,352,000 as of November 1, 2025, from $36,227,000 a year earlier, showing a growth of 41.8%[14] - Net cash provided by operating activities increased significantly to $67,607,000 from $12,137,000 year-over-year[17] - Cash paid for operating lease liabilities was $145,517,000 for the nine months ended November 1, 2025, compared to $157,435,000 for the same period in the previous year[53] - The company recorded a net increase in cash and cash equivalents of $6.600 million for the nine months ended November 1, 2025, compared to a decrease of $12.946 million in the same period last year[98] Segment Performance - U.S. Retail segment net sales for the nine months ended November 1, 2025, were $1.79 billion, down 4.5% from $1.88 billion in the prior year[36] - Athletic footwear sales in the U.S. Retail segment for the three months ended November 1, 2025, increased to $188.6 million, up 1.4% from $185.3 million in the same period last year[36] - Comparable sales for the U.S. Retail segment decreased by 1.5%, while the Canada Retail segment saw a decline of 6.6% for the three months ended November 1, 2025[74] - The Brand Portfolio segment's net sales decreased by 8.6% to $101.9 million, with comparable sales down 21.5% due to a shift in timing of wholesale revenue[77][78] Expenses and Costs - Operating expenses as a percentage of net sales increased to 39.9% from 38.2% in the prior year, reflecting a rise in total operating expenses[81] - The company incurred severance costs of $7.3 million for the nine months ended November 1, 2025, compared to $5.5 million for the same period in 2024[24] - Interest expense for the third quarter of 2025 was $11,420,000, reflecting ongoing financial obligations[64] Tax and Impairment - The effective tax rate for the nine months ended November 1, 2025, was 50.0%, compared to a negative 7.9% for the same period in 2024[26] - The effective tax rate for the three months ended November 1, 2025, was 38.1%, compared to a negative 20.2% in the same period last year[86] - The company recorded impairment charges of $4.4 million during the nine months ended November 1, 2025, compared to $17.8 million for the same period in 2024[30] Shareholder Actions - The company declared a quarterly cash dividend of $0.05 per share for both Class A and Class B common shares, payable on December 19, 2025[49] - As of November 1, 2025, the company has $19.7 million remaining authorized for repurchase under its share repurchase program, with no shares repurchased during the nine months ended[117] Legal and Compliance - The company is involved in various legal proceedings, but potential liabilities are not expected to be material to financial results[61] - The company maintained compliance with all financial covenants in the ABL Revolver and Term Loan as of November 1, 2025[60] - The company has not made any changes to its internal control over financial reporting that materially affect its reporting[112] Market Conditions - The company is closely monitoring the impact of increased tariffs and macroeconomic conditions on its cost structure and future operations[71][72] - Recent changes to U.S. trade policy, including increased tariffs, could materially adversely affect the company's business and liquidity, particularly due to sourcing from Asia[116] - The company continues to monitor macroeconomic conditions and potential impacts from new tariffs or trade restrictions on financial performance and asset valuation[109]

Financial Performance - Third quarter revenue was $448.2 million, a slight decrease compared to the third quarter of 2024[82] - Net loss totaled $42.1 million, or $1.22 per diluted share, an increase of 28.7% from a net loss of $32.7 million, or $0.84 per diluted share in the third quarter of 2024[82] - Adjusted EBITDA was $59.4 million, a decrease of 13.0%, or $8.9 million, from the third quarter of 2024[82] - Total revenues for the third quarter of 2025 decreased by $4.8 million to $448.2 million compared to $453.0 million for the third quarter of 2024, primarily due to a $16.4 million decrease in comparable store sales[107] - Comparable store revenues were $389.6 million, down from $406.0 million, reflecting a reduction in walk-in business relative to the prior year[107] - Entertainment revenues accounted for 62.3% of total revenues in the third quarter of 2025, down from 65.0% in the same period of 2024[107] - Adjusted EBITDA for the third quarter of 2025 was $59.4 million, or 13.3% of total revenues, compared to $68.3 million, or 15.1%, in the same period of 2024[104] - The net loss for the third quarter of 2025 was $42.1 million, or 9.4% of total revenues, compared to a net loss of $32.7 million, or 7.2%, in the third quarter of 2024[104] Store Operations - For fiscal 2025, the comparable store base consists of 210 stores, including 153 Dave & Buster's and 57 Main Event stores[85] - Six new Dave & Buster's branded stores and three new Main Event locations were opened in the nine months ended November 4, 2025[86] - The company operates stores averaging 36,800 square feet for Dave & Buster's and 53,300 square feet for Main Event[84] - Company-owned stores increased to 241 at the end of the third quarter of 2025, up from 227 in the prior year[104] Revenue Trends - Seasonal factors historically lead to higher revenues in spring and year-end holidays, with lower revenues typically in the third quarter[99] - Comparable store sales decreased by 4.0% compared to the same period in 2024[82] - Total revenues for the nine months ended November 4, 2025, decreased by $25.0 million, or 1.6%, to $1,573.2 million compared to $1,598.2 million for the same period in 2024[124] - Comparable store revenues decreased by $81.5 million to $1,397.2 million, while noncomparable store revenues increased by $54.6 million to $149.3 million[124] - Entertainment revenues accounted for 64.2% of total revenues in the 2025 period, down from 66.1% in the 2024 period[124] Cost and Expenses - Total cost of products decreased to $63.5 million, representing 14.2% of total revenues, down from 15.0% in the prior year[108] - Operating payroll and benefits increased to $124.9 million, accounting for 27.9% of total revenues, compared to 26.7% in the third quarter of 2024[111] - General and administrative expenses rose to $32.9 million, representing 7.3% of total revenues, up from 5.4% in the prior year[113] - Total operating payroll and benefits increased to $398.6 million, representing 25.3% of total revenues, compared to 24.6% in 2024[128] - Other store operating expenses increased to $550.1 million, or 35.0% of total revenues, compared to 32.4% in 2024[129] - Cost of food and beverage products decreased to $140.7 million, with a percentage of 25.0% of food and beverage revenues, down from 26.9% in the 2024 period[127] - General and administrative expenses increased to $89.2 million in 2025 from $80.6 million in 2024, representing an increase of 8.0%[130] - Depreciation and amortization expense rose to $191.4 million in 2025, up from $174.2 million in 2024, primarily due to new store openings and remodels[131] - Pre-opening costs increased to $14.8 million in 2025 compared to $12.6 million in 2024, reflecting the timing of costs for new stores[132] Financial Position - Interest expense, net increased to $40.2 million in the third quarter of 2025, compared to $32.9 million in the prior year[116] - Interest expense, net increased to $115.7 million in 2025 from $99.9 million in 2024, primarily due to incremental interest from sale-leaseback transactions[134] - The effective tax rate for 2025 was 42.7%, significantly higher than 19.9% in 2024, influenced by a shift from pre-tax income to a pre-tax loss[136] - The Net Total Leverage Ratio as of November 4, 2025, was 3.3x, calculated using net debt of $1,593.1 million and Credit Adjusted EBITDA[150] Cash Flow and Capital Expenditures - Cash flow from operating activities decreased to $187.8 million for the 2025 period compared to $203.4 million for the 2024 period, primarily due to a decrease in net income and changes in working capital timing[155] - Total capital additions for the nine months ended November 4, 2025, were $268.3 million, down from $364.0 million for the same period in 2024, reflecting a decrease in new store and remodel expenditures[157] - Cash flow provided by financing activities was $136.8 million in the 2025 period, primarily from net debt proceeds and sale-leaseback transactions, partially offset by share repurchases[157] - Cash flow used in investing activities decreased to $317.9 million for the 2025 period from $359.9 million for the 2024 period, mainly due to reduced expenditures on new stores and remodels[155] - New store expenditures were $142.6 million for the nine months ended November 4, 2025, compared to $155.6 million for the same period in 2024[157] - The company reported maintenance capital expenditures of $30.8 million for the nine months ended November 4, 2025, down from $44.3 million in the prior year[157] Market Conditions - Economic conditions may impact supplier pricing and consumer spending, with potential for selective price increases to offset costs[100] - The company is exposed to commodity price fluctuations, which can materially impact food costs, and there is no assurance that these costs can be passed on to customers[161] - Severe inflation increases could adversely affect the company's business and financial condition, particularly if multiple cost factors rise simultaneously[163] - A hypothetical one percentage point interest rate change on the outstanding balance of the Credit Facility would impact annual results by approximately $15.9 million[162] Shareholder Actions - The company repurchased 1.04 million shares at an average price of $23.03 per share, with a remaining authorized limit of $104.1 million for future repurchases[151] - As of November 4, 2025, the company had cash and cash equivalents of $13.6 million, sufficient to meet operating requirements and capital allocation strategy for the next twelve months[153]

Revenue Growth - Revenue for the three months ended November 1, 2025, was $416.0 million, a 29% increase from $322.0 million for the same period in 2024[116] - For the nine months ended November 1, 2025, revenue reached $1,174.3 million, reflecting a 30% increase from $902.9 million in the prior year[116] - Annual recurring revenue (ARR) as of November 1, 2025, was $1,745.1 million, up from $1,348.9 million a year earlier[117] - The number of customers generating over $100,000 in ARR increased to 2,990, compared to 2,292 in the previous year[117] Profitability - The company reported a net income of $7.8 million for the three months ended November 1, 2025, compared to a net loss of $37.8 million for the same period in 2024[116] - The net loss for the nine months ended November 1, 2025, was $31.2 million, significantly improved from a net loss of $143.7 million in the same period of 2024[116] - Non-GAAP gross profit for the three months ended November 1, 2025, was $323.7 million, compared to $249.8 million for the same period in 2024[154] - The company reported a non-GAAP operating margin of 19% for the three months ended November 1, 2025, compared to 11% for the same period in 2024[154] - Non-GAAP net income for the three months ended November 1, 2025, was $89.3 million, compared to $43.5 million for the same period in 2024, indicating an increase of 105.5%[161] Cash Flow - Free cash flow for the nine months ended November 1, 2025, was $145.7 million, up from $63.0 million for the same period in 2024[154] - Cash provided by operating activities for the nine months ended November 1, 2025, was $166.5 million, compared to $77.8 million for the same period in 2024, reflecting an increase of 113.0%[171] - The company generated positive operating cash flows beginning in fiscal year 2025, after experiencing negative cash flows in the preceding two fiscal years[169] Expenses - Cost of revenue increased by $20.9 million, or 28%, for the three months ended November 1, 2025, primarily due to increased cloud and cellular costs and connected device costs[140] - Research and development expense rose by $9.2 million, or 12%, for the three months ended November 1, 2025, mainly due to increased employee-related costs[144] - Sales and marketing expense increased by $18.3 million, or 12%, for the three months ended November 1, 2025, primarily due to higher employee-related costs and marketing expenditures[146] - General and administrative expense grew by $3.5 million, or 6%, for the three months ended November 1, 2025, largely due to increased stock-based compensation and consulting fees[148] Market and Economic Factors - Macroeconomic trends, including inflation and supply chain disruptions, may impact the company's growth and operational results[124] - The company does not believe inflation has materially impacted its financial statements, but significant inflation could affect cost management[186] - A hypothetical 10% change in the U.S. dollar's value relative to other currencies would not materially impact the financial statements[185] Investments and Financial Position - Total cash, cash equivalents, and short-term and long-term investments as of November 1, 2025, amounted to $1,147.2 million[166] - The company reported an accumulated deficit of $1,641.2 million as of November 1, 2025[164] - Cash used in investing activities for the nine months ended November 1, 2025, was $134.7 million, primarily due to $643.1 million in purchases of investments[173] - As of February 1, 2025, the company had $977.5 million in cash, cash equivalents, and investments[184] Operational Efficiency - Gross margin improved to 77% for the three months ended November 1, 2025, up from 76% for the same period in 2024, driven by operational efficiencies[141] - Non-GAAP gross margin for the three months ended November 1, 2025, was 78%, consistent with the previous year[158]

Financial Performance - Third quarter revenue was $448.2 million, a 1.1% decrease compared to the third quarter of fiscal 2024[8] - Third quarter comparable store sales decreased 4.0% compared to the same calendar period in fiscal 2024[8] - Net loss totaled $42.1 million, or $1.22 per diluted share, compared to a net loss of $32.7 million, or $0.84 per diluted share in the third quarter of fiscal 2024[8] - Adjusted EBITDA was $59.4 million compared to $68.3 million in the third quarter of fiscal 2024[8] - Adjusted net income for the three months ended November 4, 2025, was $(39.4) million, resulting in an adjusted net income per diluted share of $(1.14) [28] - For the nine months ended November 4, 2025, adjusted net income was $74.7 million, with an adjusted net income per diluted share of $1.84 [28] - The net income (loss) for the three months ended November 4, 2025, was $(42.1) million, or $(1.22) per diluted share [28] - The adjusted net income (loss) per diluted share for the three months ended November 5, 2024, was $(0.45) [28] - The adjusted net income (loss) for the three months ended November 5, 2024, was $(17.5) million [28] Store Operations - The Company opened one new domestic Dave & Buster's store and three new Main Event stores in the third quarter[8] - The Company expects to open at least four additional international franchise stores over the next six months[8] - The Company commenced remodels of three Dave & Buster's stores in the third quarter[8] - The Company has 241 stores in North America, including 177 Dave & Buster's stores and 64 Main Event stores[11] Cash Flow and Liquidity - Operating cash generated during the third quarter was $58.0 million, ending with $441.9 million of available liquidity[9] - Net cash provided by operating activities for the three months ended November 4, 2025, was $58.0 million, a significant recovery from a cash outflow of $7.2 million in the same period last year[20] - Cash and cash equivalents rose to $13.6 million as of November 4, 2025, up from $6.9 million on February 4, 2025, indicating improved liquidity[19] Assets and Liabilities - Total assets increased to $4,130.7 million as of November 4, 2025, up from $4,015.8 million on February 4, 2025, representing a growth of 2.9%[19] - Total current liabilities decreased to $377.6 million as of November 4, 2025, from $433.9 million on February 4, 2025, indicating improved short-term financial stability[19] - Long-term debt increased to $1,552.8 million as of November 4, 2025, compared to $1,479.1 million on February 4, 2025, reflecting ongoing financing activities[19] Financial Ratios and Metrics - Adjusted EBITDA for the three months ended November 4, 2025, was $59.4 million, accounting for 13.3% of total revenues, compared to $68.3 million or 15.1% in the prior year[23] - Store Operating Income Before Depreciation and Amortization for the three months ended November 4, 2025, was $85.0 million, representing 19.0% of total revenues, down from $93.3 million or 20.6% in the same period last year[25] - Credit Adjusted EBITDA for the trailing four quarters ended November 4, 2025, was $483.1 million, providing insight into the company's financial health and compliance with credit agreements[26] - The Net Total Leverage Ratio as of November 4, 2025, was 3.0, calculated using net debt of $1,593 million against Credit Adjusted EBITDA of $483 million[27] Special Items and Adjustments - Loss on debt refinancing for the nine months ended November 4, 2025, was $15.2 million, contributing $0.37 to the adjusted net income per diluted share [28] - System implementation costs for the three months ended November 4, 2025, amounted to $0.6 million, with a per diluted share impact of $0.02 [28] - Transaction and integration costs for the nine months ended November 4, 2025, totaled $1.4 million, impacting adjusted net income per diluted share by $0.03 [28] - The tax impact of special items for the nine months ended November 4, 2025, was $(8.9) million, or $(0.22) per diluted share [28] - Other items, net, contributed $10.4 million to adjusted net income for the nine months ended November 4, 2025, with a per diluted share impact of $0.30 [28]

Store Operations - As of November 1, 2025, the company operated 317 stores, an increase from 293 stores as of November 2, 2024, representing an 8.2% growth in store count[85]. - The company opened 11 new stores in the third quarter of 2025, contributing $48.6 million in net sales, with a total of 24 new stores opened since the end of the third quarter of 2024[107]. - 24 new stores opened since the end of Q3 2024, generating $110.3 million in net sales year-to-date 2025, with 58 new stores opened since 2022[116]. - The company expects new stores to be a key driver of growth in net sales and gross margin, with a focus on off-mall locations[97]. Sales Performance - Net sales for the 2025 third quarter were influenced by a product assortment focusing on outdoor, sports, recreation, apparel, and footwear, which accounted for 32%, 21%, 25%, and 22% of net sales respectively[82]. - The company reported an increase in comparable sales, which includes both in-store and e-commerce sales, reflecting positive consumer trends and effective inventory management[88]. - Net sales increased by $40.4 million, or 3.0%, in the third quarter of 2025 compared to the same period in 2024, driven by a 5.6% increase in the sports and recreation merchandise division[106]. - For the year-to-date 2025, net sales increased by $78.4 million, or 1.8%, compared to year-to-date 2024, with growth in all merchandise divisions[115]. E-commerce Performance - E-commerce sales are a significant component of the company's revenue, with all transactions through the website or mobile app counted towards comparable sales[89]. - E-commerce net sales represented 10.4% of merchandise sales in the third quarter of 2025, up from 8.8% in the prior year, with a 22.2% increase in e-commerce net sales year-over-year[108]. - E-commerce net sales increased by 16.1% year-to-date 2025, representing 10.5% of merchandise sales compared to 9.2% in year-to-date 2024[117]. Financial Metrics - Adjusted EBITDA and other non-GAAP metrics are used to evaluate business performance and inform strategic decisions[91]. - Gross margin increased by $36.7 million, or 8.0%, to $493.4 million in the third quarter of 2025, with gross margin as a percentage of net sales rising from 34.0% to 35.7%[109]. - Gross margin increased by $57.8 million, or 3.9%, to $1,529.0 million for year-to-date 2025, with a gross margin percentage increase of 70 basis points to 35.3%[118]. - Adjusted Net Income for the thirty-nine weeks ended November 1, 2025, was $260.2 million, down from $300.7 million for the same period in 2024[129]. Expenses - Selling, general and administrative (SG&A) expenses increased by $27.8 million, or 7.6%, to $393.0 million in the third quarter of 2025, primarily due to strategic investments in new stores and technology[109]. - SG&A expenses rose by $99.7 million, or 9.2%, to $1,187.0 million for year-to-date 2025, primarily due to strategic investments of $85.0 million[119]. Cash Flow and Capital Expenditures - Net cash provided by operating activities for the thirty-nine weeks ended November 1, 2025, was $285.066 million, a decrease of $102.8 million compared to the same period in 2024[143][144]. - Total capital expenditures for the thirty-nine weeks ended November 1, 2025, amounted to $170.154 million, an increase from $135.866 million in the same period of 2024[142]. - The company expects capital expenditures for fiscal 2025 to be between $180 million and $210 million, with 60% allocated to new stores[142]. Debt and Liquidity - As of November 1, 2025, the company's total long-term debt is $99.213 million for term loans and $460 million for notes, with a total of $8.386 million from the ABL Facility[133][135]. - The company has a minimum available borrowing capacity of $953.921 million as of November 1, 2025, with no outstanding borrowings on the ABL Facility[136]. - Interest expense remained relatively constant in the third quarter of 2025 compared to the same period in 2024[110]. - Interest expense decreased by $0.6 million, or 2.3%, for year-to-date 2025, attributed to lower interest rates and a reduced outstanding balance on the Term Loan[121]. Shareholder Returns - The company repurchased 2,080,772 shares at an average price of $47.59 per share, totaling $99.031 million in the first quarter of 2025[140]. - Quarterly dividends paid for the year-to-date 2025 totaled $26.028 million, with a dividend of $0.13 per share declared for the fiscal quarter ended November 1, 2025[141]. - The company had $536.5 million remaining for share repurchases under the 2024 Share Repurchase Program as of November 1, 2025[139].

Financial Performance - Net sales for Q3 2026 were $47.6 million, a 4% increase from $45.8 million in Q3 2025, driven by a 31% increase in Fire Services to $25.3 million[2][10] - Gross profit decreased by 24% to $14.1 million in Q3 2026, with gross margin dropping to 29.7% from 40.6% in Q3 2025[2][12] - The company reported a net loss of $16.0 million, or $1.64 per diluted share, compared to a net income of $0.1 million in Q3 2025[2][15] - Adjusted EBITDA excluding FX for Q3 2026 was $0.2 million, a 95% decrease from $4.7 million in Q3 2025, with a margin of 0.5%[2][17] - Organic revenue decreased by 3% to $37.5 million in Q3 2026, impacted by delays in U.S. industrials and global tender processes[2][8] - Operating expenses increased by 13% to $20.1 million in Q3 2026, primarily due to recent acquisitions and higher equity compensation[2][13] Sales and Market Performance - U.S. sales increased by 25% to $19.2 million, while LATAM sales decreased by 16% to $4.2 million due to macroeconomic conditions[2][8] - The company has approximately $178 million in global tender opportunities for FY27, with $38 million having high probabilities of success[5] Strategic Initiatives - The company completed strategic acquisitions of Arizona PPE and California PPE, contributing approximately $5 million of annual recurring revenue[3][9] - The company plans to continue focusing on its strategic growth initiatives, including the start-up costs for its new facility in Monterrey, Mexico[25] Cash Flow and Liquidity - Cash and cash equivalents totaled $17.2 million as of October 31, 2025, with working capital at approximately $105.9 million[2][18] - As of October 31, 2025, the company had borrowings of $33.2 million under the revolving credit facility and $6.8 million of available credit[19] - Net cash used in operating activities increased to $17.6 million for the nine months ended October 31, 2025, compared to $12.5 million for the same period in 2024, driven by a net loss of $19.1 million and an increase in working capital of $7.9 million[20] - Cash flows from operating activities resulted in a net cash used of $(17,590,000) for the nine months ended October 31, 2025, compared to $(12,494,000) for the same period in 2024[47] Dividend and Shareholder Returns - The company suspended its quarterly cash dividend on common stock, which was previously $0.03 per share[21] Asset and Liability Management - Total current assets increased to $143,320,000 as of October 31, 2025, from $136,531,000 as of January 31, 2025[45] - Total liabilities rose to $86,233,000 as of October 31, 2025, compared to $65,905,000 as of January 31, 2025[45] - The company sold its Decatur, Alabama property for $6.1 million and applied the net proceeds to repay its revolving credit facility[19] Historical Comparisons - The company reported a net loss of $15.96 million for the three months ended October 31, 2025, compared to a net income of $86,000 for the same period in 2024[25] - Adjusted EBITDA for the three months ended October 31, 2025, was $(668,000), with an adjusted EBITDA margin of -1.4%[25] - Organic revenue for the nine months ended October 31, 2025, was $116.1 million, representing an increase from $111.9 million in the previous year[26] - Gross profit for the nine months ended October 31, 2025, was $48.6 million, down from $49.98 million in the same period in 2024[26] - Operating expenses for the three months ended October 31, 2025, were $20.1 million, compared to $17.8 million for the same period in 2024[26] - Net loss for the nine months ended October 31, 2025, was $(19,102,000), compared to net income of $363,000 for the same period in 2024[47] - The weighted average common shares outstanding increased to 9,752,582 for the three months ended October 31, 2025, compared to 7,428,451 for the same period in 2024[43] - Cash and cash equivalents at the end of the period were $17,194,000, a slight decrease from $17,476,000 at the beginning of the period[47] - The company incurred a gain on sale-leaseback transaction of $(4,333,000) for the nine months ended October 31, 2025[43]

Revenue Growth - Fiscal Q4 2025 revenue was $17.0 million, a 152.6% increase from $6.7 million in Q4 2024[4] - Fiscal year 2025 revenue increased by 69.8% to $40.8 million, compared to $24.0 million in fiscal year 2024[11] - Revenues for the three months ended September 30, 2025, reached $17,027 million, a significant increase from $6,741 million in the same period of 2024, representing a growth of 152.5%[26] Profitability Metrics - Gross margin for Q4 2025 was 50.3%, up from 40.8% in Q4 2024[4] - Adjusted EBITDA for Q4 2025 was $2.4 million, a significant improvement from a loss of $6.0 million in Q4 2024[7] - Adjusted EBITDA for the three months ended September 30, 2025, was $2,375 million, compared to a loss of $6,013 million in the same period of 2024[26] Operating Income and Expenses - GAAP operating income for Q4 2025 was $1.3 million, compared to a loss of $7.1 million in Q4 2024[4] - Total operating expenses decreased to $7,260 million for the three months ended September 30, 2025, down from $9,881 million in the same period of 2024, a reduction of 26.5%[26] - The company incurred other expenses of $2,680 million for the three months ended September 30, 2025, compared to $4,183 million in the same period of 2024, a decrease of 36.0%[26] Net Loss - GAAP net loss for fiscal year 2025 was $18.1 million, or $0.40 per share, compared to a loss of $31.7 million, or $0.72 per share, in fiscal year 2024[14] - The net loss for the three months ended September 30, 2025, was $1,408 million, significantly lower than the net loss of $11,386 million in the same period of 2024[26] - The company reported a loss before income taxes of $1,369 million for the three months ended September 30, 2025, compared to a loss of $11,315 million in the same period of 2024[26] Cash Position - Cash and cash equivalents totaled $7.97 million as of September 30, 2025, down from $13.1 million a year earlier[15] Future Outlook - Genasys expects sustained year-over-year revenue growth with gross margins near 50% entering fiscal 2026[4] - The company secured an additional $1.1 million in LRAD orders from the U.S. Military, indicating continued demand[7] Research and Development - Research and development expenses for the three months ended September 30, 2025, were $1,504 million, down from $2,427 million in the same period of 2024, a decrease of 38.0%[26] Share Information - The weighted average common shares outstanding for the three months ended September 30, 2025, were 45,154 million, slightly up from 44,598 million in the same period of 2024[26] Income Tax - The income tax benefit for the three months ended September 30, 2025, was $39 million, compared to an expense of $71 million in the same period of 2024[26]

Revenue Growth and Performance - Dell Technologies expects net revenue growth in both the Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG), with ISG growth driven by increased demand for AI-optimized server offerings [208]. - The company anticipates a continued reduction in Corporate and other net revenue due to divested businesses and offerings that are no longer actively sold [208]. - Net revenue increased by 11% to $27.0 billion in Q3 2026 and by 12% to $80.2 billion for the first nine months, driven by growth in ISG and CSG net revenue [240]. - Product net revenue rose 16% to $21.3 billion in Q3 2026 and 18% to $62.8 billion for the first nine months, primarily due to growth in servers and networking offerings [245]. - Services net revenue decreased by 5% to $5.8 billion in Q3 2026 and by 5% to $17.4 billion for the first nine months, impacted by the decline in VMware Resale revenue [246]. - Infrastructure Solutions Group (ISG) net revenue increased by 24% in Q3 and 28% in the first nine months of Fiscal 2026, reaching $14.1 billion and $41.2 billion, respectively [268]. - Client Solutions Group (CSG) net revenue increased by 3% in both Q3 and the first nine months of Fiscal 2026, totaling $12.5 billion and $37.5 billion, respectively [274]. Profitability and Margins - Net income for the three months ended October 31, 2025, was $1,548 million, a 32% increase from $1,170 million in the same period last year [230]. - Operating income increased by 23% to $2.1 billion in Q3 2026 and by 24% to $5.1 billion for the first nine months, driven by ISG operating income growth [241]. - Non-GAAP operating income for the nine months ended October 31, 2025, reached $6,453 million, reflecting a 10% increase compared to $5,855 million in the prior year [230]. - Gross margin increased by 4% to $5.6 billion in Q3 2026 and by 3% to $16.0 billion for the first nine months, primarily due to growth in AI-optimized server offerings [248]. - Non-GAAP net income increased by 11% to $1.8 billion in Q3 2026 and by 12% to $4.4 billion for the first nine months [238]. - The shift towards AI-optimized server offerings has impacted gross margin rates negatively [249]. Cost Management and Investments - Dell Technologies is committed to disciplined cost management and expects further reductions in overall headcount as part of its modernization initiatives [211]. - The company is managing increased inflation for component costs and anticipates a modest increase in input costs for the remainder of Fiscal 2026 [210]. - The company expects to continue making strategic investments to drive growth and innovation while managing costs [256]. - Dell Technologies is focused on strategic investments and acquisitions to enhance its innovation agenda and expand its technology portfolio [219]. Cash Flow and Capital Expenditures - Free cash flow for the three months ended October 31, 2025, was $506 million, a 45% decrease from $914 million in the same period last year [234]. - Cash provided by operating activities was $6.5 billion for the first nine months of Fiscal 2026, up from $3.9 billion in the same period last year [243]. - The company spent $1.9 billion on capital expenditures during the first nine months of both Fiscal 2026 and Fiscal 2025 [305]. - Cash and cash equivalents increased by $5.9 billion during the first nine months of Fiscal 2026, primarily due to increased cash flows from operations and net debt from Senior Notes issuance [290]. Debt and Liabilities - As of October 31, 2025, the total outstanding principal amount of debt increased by $6.7 billion to $31.5 billion, primarily due to the issuance of Senior Notes [294]. - Core debt was reported at $17.9 billion as of October 31, 2025, up from $13.0 billion as of January 31, 2025 [295]. - Total liabilities increased from $67,776 million to $73,571 million, reflecting a growth of approximately 8.5% [321]. - Long-term debt rose from $15,824 million to $20,028 million, an increase of about 26.9% [321]. Market and Operational Insights - The company continues to see opportunities for growth driven by long-term demand for IT solutions in a data- and AI-enabled world [244]. - Approximately 40% of net revenue was generated from international sales during the third quarter of Fiscal 2026, highlighting the company's global presence [220]. - The company maintains a Supply Chain Finance Program that does not impact liquidity, as payments to suppliers are remitted on the original invoice due date [304]. - The company’s exposure to market risks has not changed materially from the previous fiscal year [322].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED NOVEMBER 1, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NO. 1-32637 GameStop Corp. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 625 Westport Parkway Grapevine, Texas ...