Financial Performance - Net sales increased by 8% to $61,965 million in the third quarter of 2025, driven by a 6% increase in comparable sales and sales from 29 new warehouses opened since the end of the third quarter of 2024[77]. - Membership fee revenue rose by 10% to $1,240 million, primarily due to new member sign-ups and membership fee increases[77]. - Gross margin percentage increased by 41 basis points, with a 29 basis point increase excluding the impact of gasoline price deflation on net sales[77]. - Net income increased to $1,903 million, or $4.28 per diluted share, compared to $1,681 million, or $3.78 per diluted share in 2024[77]. - Comparable sales increased by 6% in both the third quarter and the first thirty-six weeks of 2025, supported by a 5% increase in shopping frequency[83]. - E-commerce sales grew by 15% in the third quarter of 2025, reflecting strong online performance[78]. - Lower gasoline prices negatively impacted net sales by $642 million during the third quarter of 2025, with an average price per gallon decreasing by 9%[80]. - Changes in foreign currencies negatively impacted net sales by approximately $699 million during the third quarter of 2025[81]. Expenses and Margins - SG&A expenses as a percentage of net sales increased by 20 basis points, with an 11 basis point increase excluding the impact of gasoline price deflation[77]. - SG&A expenses for Q3 2025 were $5,679 million, representing 9.16% of net sales, an increase of 20 basis points year-over-year[93]. - Interest expense decreased to $35 million in Q3 2025 from $41 million in Q3 2024, primarily due to the repayment of Senior Notes[96]. - Gross margin for Q3 2025 was $6,969 million, with a gross margin percentage of 11.25%, an increase of 41 basis points from the previous year[86]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $9,468 million for the first thirty-six weeks of 2025, compared to $8,381 million for the same period in 2024[100]. - Capital expenditures in the first thirty-six weeks of 2025 totaled $3,532 million, with plans to exceed $5,000 million for the fiscal year[106]. - The company repurchased 658,000 shares of common stock in the first thirty-six weeks of 2025 at an average price of $946.64 per share, totaling approximately $623 million[109]. Dividends and Tax - A quarterly cash dividend of $1.30 per share was declared, representing a 12% increase[77]. - A quarterly cash dividend of $1.30 per share was declared on April 16, 2025, and paid on May 16, 2025[108]. - The effective tax rate for the first thirty-six weeks of 2025 was 26.2%, influenced by discrete tax benefits of $100 million related to stock compensation[98]. Future Plans and Commitments - The company plans to open ten additional new warehouses in the remainder of fiscal 2025, following the opening of 17 new warehouses in the first thirty-six weeks[106]. - As of May 11, 2025, the company has a borrowing capacity of $1,176 million under bank credit facilities, with $681 million attributed to international operations[110]. - Outstanding commitments under letter of credit facilities totaled $205 million at the end of Q3 2025, primarily consisting of standby letters of credit[111]. - The company intends to renew most of its bank credit facilities, which have various expiration dates, mostly within one year[111]. Accounting and Risk Management - There have been no material changes to critical accounting estimates since the last Annual Report for the fiscal year ended September 1, 2024[112]. - The company has direct exposure to financial market risks from fluctuations in foreign-currency exchange rates and interest rates, with no material changes reported[114].

Acquisition and Financing - The Company entered into a Share Purchase and Transfer Agreement to acquire Cataneo GmbH for a total purchase price of $19.5 million, consisting of $9.0 million in cash and 4,200,000 shares of Common Stock valued at $2.50 per share[133]. - The transaction is expected to close in the first half of 2025, subject to various closing conditions including the making of a Cash Election and obtaining necessary approvals[135]. - The Company plans to finance the acquisition through third-party financing, which may include debt or equity[136]. - As of May 30, 2025, the Company has paid an aggregate of $550,000 towards the Cash Consideration for the acquisition[138]. - The cash purchase price for the acquisition of Cataneo is $9.0 million, with potential additional cash payments for equity consideration[194]. Financial Performance - For the three months ended March 31, 2025, revenues were $10,000, a decrease of $39,790 compared to $49,790 for the same period in 2024[163]. - General and administrative expenses for the three months ended March 31, 2025 were approximately $3.2 million, a decrease of approximately $3.3 million compared to the same period in 2024[165]. - Research and development expenses for the three months ended March 31, 2025 were approximately $11,000, a decrease of approximately $0.2 million compared to the same period in 2024[167]. - The net loss for Q1 2025 was approximately $3.6 million, compared to a net loss of approximately $6.9 million in Q1 2024[196][197]. - Cash used in operating activities for Q1 2025 was approximately $2.6 million, a decrease from $4.5 million in Q1 2024[196][197]. - Cash provided by financing activities in Q1 2025 was approximately $2.8 million, down from $6.3 million in Q1 2024[199][200]. - The company reported a net cash increase of approximately $87,000 in Q1 2025, compared to $1.6 million in Q1 2024[195]. Debt and Default - The Company issued a non-convertible unsecured promissory note for approximately $1.7 million, which is currently in default with an outstanding balance of $416,667[141]. - The Company issued a convertible promissory note for $1.9 million, with an outstanding balance of $760,000 as of March 31, 2025, and is currently in default[142]. - The company is in default on the Cohen Convertible Note with an unpaid balance of $0.8 million as of March 31, 2025[171]. - The Yorkville Promissory Note, issued on November 11, 2024, has an outstanding balance of $0.4 million as of March 31, 2025, and is in default[180]. Capital Raising and Securities - The company has filed multiple resale registration statements that became stale as of March 31, 2025, affecting the registration of certain securities[140]. - The company intends to raise additional capital through equity or debt investments to fund future operations and product development[170]. - As of March 31, 2025, the company issued a total of 330,000 shares of Common Stock for gross proceeds of $750,000 under the May SPA[173]. - The company entered into a July SPA on July 1, 2024, for the issuance of 120,000 shares of Common Stock and 240,000 warrants for an aggregate purchase price of $0.3 million[174]. - On August 26, 2024, the company agreed to issue 1,185,000 shares of Common Stock at a price of $5.00 per share, resulting in a total transaction value of $5.925 million[175]. - The company issued an aggregate of 100,000 shares of Common Stock and 960,000 August Warrants for a total payment of $0.5 million on August 30, 2024[176]. - The company has a Standby Equity Purchase Agreement allowing it to sell up to $50.0 million of Common Stock to Yorkville during a 36-month period[178]. Research and Development - The company entered into a research and development sponsorship agreement with Korea University for total consideration of approximately $0.4 million[192]. - The company is focused on developing AI assistants that enhance customer experiences and operational efficiency in the automotive and healthcare markets[131]. - The company plans to launch its Automotive AI Agent, which integrates with major automotive data and service platforms, supporting over 13,000 dealerships nationwide[151]. Intellectual Property - The Company has significant intellectual property in the form of a patent portfolio targeting industries such as automotive, healthcare, and financial services[132]. Other Financial Information - The change in fair value of warrant liabilities for the three months ended March 31, 2025 was approximately $0.6 million, reflecting a non-cash charge[168]. - The company expects to incur substantial additional expenses related to public company requirements, including compliance and reporting obligations[154]. - The net cash inflow from changes in operating assets and liabilities in Q1 2025 was approximately $0.2 million, driven by a $0.9 million increase in accounts payable[196]. - Non-cash charges in Q1 2025 included approximately $0.8 million, consisting of depreciation, equity-based compensation, and non-cash interest expense[196]. - Cash used in investing activities was approximately $0.1 million in Q1 2025, consistent with $0.2 million in Q1 2024, primarily for capitalized internal-use software costs[198]. - There were no material changes to critical accounting policies from the previous year[202]. - The company has no off-balance sheet financing arrangements as of March 31, 2025[204]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay adopting new accounting standards[205].

Acquisition and Financing - The Company entered into a Share Purchase and Transfer Agreement to acquire Cataneo GmbH for an aggregate purchase price of $19.5 million, consisting of $9.0 million in cash and 4,200,000 shares of Common Stock valued at $2.50 per share[133]. - The transaction is expected to close in the first half of 2025, subject to various conditions including the making of a Cash Election and obtaining third-party approvals[135]. - The Company plans to finance the acquisition through third-party financing, which may include debt or equity[136]. - The cash purchase price for the acquisition of Cataneo is $9.0 million, with potential additional cash payments for equity consideration[194]. Financial Performance - For the three months ended March 31, 2025, the company reported revenues of $10,000, a decrease of $39,790 compared to $49,790 for the same period in 2024[163]. - General and administrative expenses for the three months ended March 31, 2025 were approximately $3.2 million, a decrease of approximately $3.3 million compared to the prior period, primarily due to transaction costs incurred in connection with the Business Combination[165]. - Research and development expenses for the three months ended March 31, 2025 were approximately $11,000, a decrease of approximately $0.2 million compared to the same period in 2024[167]. - The company had an accumulated deficit of approximately $50.6 million as of March 31, 2025, and expects losses and negative cash flows to continue for the foreseeable future[169]. - The net loss for Q1 2025 was approximately $3.6 million, compared to a net loss of approximately $6.9 million in Q1 2024[196][197]. Cash Flow and Liquidity - As of March 31, 2025, the company's principal source of liquidity was cash of approximately $0.2 million, indicating a need for additional capital to fund operations[169]. - Cash used in operating activities for Q1 2025 was approximately $2.6 million, a decrease from $4.5 million in Q1 2024[196][197]. - Cash provided by financing activities in Q1 2025 was approximately $2.8 million, down from $6.3 million in Q1 2024[199][200]. - The company reported a net cash increase of approximately $87,000 in Q1 2025, compared to $1.6 million in Q1 2024[195]. Debt and Defaults - The Company issued a non-convertible unsecured promissory note for approximately $1.7 million, which matured on March 11, 2025, and is currently in default with an outstanding balance of $416,667[141]. - The Company issued a convertible promissory note for $1.9 million, with an outstanding balance of $760,000 as of March 31, 2025, and is also in default on this note[142]. - The company is in default on the Cohen Convertible Note with an unpaid balance of $0.8 million as of March 31, 2025[171]. - The Company experienced a default on the Yorkville Promissory Note with an outstanding balance of $0.4 million as of March 31, 2025[180]. Intellectual Property and Development - The Company has significant intellectual property in the form of a patent portfolio targeting industries such as automotive, healthcare, and financial services[132]. - The Company is focused on developing AI assistants that enhance customer experiences and operational efficiency in the automotive and healthcare markets[131]. - The Company entered into a research and development sponsorship agreement with Korea University for a total consideration of approximately $0.4 million[192]. Share Issuance and Warrants - During the quarter ending March 31, 2025, Purchasers exercised 787,132 Committed Warrants for aggregate gross proceeds of $1.5 million[145]. - The Company issued 330,000 shares of Common Stock for gross proceeds of $750,000 during the quarter ending March 31, 2025[173]. - During the quarter ending March 31, 2025, the Company issued 1,500,000 shares of Common Stock to Yorkville under the SEPA[179]. - As of March 31, 2025, the Company has 1,901,281 May One-Year Warrants and 1,251,587 May Five-Year Warrants outstanding[173]. Operating Costs and Future Outlook - The company expects to incur significant operating costs that will impact future profitability, including research and development expenses and capital expenditures for expansion[152]. - The change in fair value of warrant liabilities for the three months ended March 31, 2025 was approximately $0.6 million, reflecting a non-cash charge for changes in the fair value of the warrant liabilities[168]. - There were no material changes to critical accounting policies from the previous year[202]. - The company has no off-balance sheet financing arrangements as of March 31, 2025[204]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay adopting new accounting standards[205].

Revenue and Growth - Subscription revenue accounted for 97% of total revenue for both the three months ended April 30, 2025, and 2024 [108]. - MongoDB Atlas revenue represented 72% of total revenue for the three months ended April 30, 2025, compared to 70% for the same period in 2024 [110]. - The number of customers with $100,000 or greater in annual recurring revenue (ARR) increased to 2,506 as of April 30, 2025, from 2,137 a year earlier [124]. - The net ARR expansion rate was approximately 119% as of April 30, 2025, indicating strong growth from existing customers [125]. - MongoDB had over 57,100 customers across more than 100 countries as of April 30, 2025, up from over 49,200 customers a year prior [121]. - Total revenue for the three months ended April 30, 2025, was $549.0 million, representing a 22% increase from $450.6 million in the same period of 2024 [147]. - Subscription revenue increased by $94.6 million, primarily driven by a $79.2 million increase from Direct Sales Customers [147]. Expenses and Financial Performance - Gross profit for the three months ended April 30, 2025, was $391.0 million, with a gross margin of 71%, down from 73% in 2024 [149][150]. - Research and development expenses rose to $168.8 million, a 16% increase from $146.1 million in the prior year, primarily due to increased personnel costs [152]. - Sales and marketing expenses were $220.9 million, a slight increase of 1% from $219.4 million in 2024, driven by higher personnel costs [151]. - General and administrative expenses decreased by 10% to $54.8 million, primarily due to a release of reserves for value-added tax expenses [154]. - The net loss for the three months ended April 30, 2025, was $37.6 million, compared to a net loss of $80.6 million in the same period of 2024 [144]. - The company expects to continue incurring operating losses and may require additional capital resources to support growth initiatives [159]. Cash Flow and Liquidity - As of April 30, 2025, the company had cash, cash equivalents, and short-term investments totaling $2.5 billion, sufficient to fund operations for at least the next 12 months [157]. - Cash provided by operating activities for the three months ended April 30, 2025, was $109.9 million, an increase from $63.6 million in the same period of 2024, reflecting growth in sales and customer base expansion [163][164]. - Accounts receivable decreased by $79.9 million in Q1 2025, compared to a decrease of $59.3 million in Q1 2024, indicating improved cash collections [163][164]. - Cash provided by investing activities in Q1 2025 was $51.6 million, primarily from maturities of marketable securities, while cash used in investing activities in Q1 2024 was $48.1 million due to purchases of marketable securities [165][166]. - Cash used in financing activities for Q1 2025 was $1.8 million, slightly higher than $1.1 million in Q1 2024, mainly due to principal payments of finance leases [167]. - As of April 30, 2025, the company had cash, cash equivalents, restricted cash, and short-term investments totaling $2.5 billion, reflecting strong liquidity [177]. Market and Strategic Outlook - The worldwide data software market is projected to grow from $106 billion in 2024 to approximately $191 billion in 2029, representing a 13% compound annual growth rate [114]. - MongoDB plans to continue investing in sales and marketing efforts to drive customer acquisition and expand its global reach [121]. - The macroeconomic environment negatively impacted growth rates for existing MongoDB Atlas applications during the three months ended April 30, 2025 [117]. - The company experienced seasonal fluctuations in revenue, particularly with MongoDB Atlas revenue recorded on a consumption basis, which may impact future results [168]. - The company has not entered into derivative or hedging transactions for foreign currency risks but may consider it as international operations grow [178]. - There were no material changes to contractual obligations and commitments during the three months ended April 30, 2025, compared to previous disclosures [170].

Financial Performance - Current quarter net revenue decreased by $0.85 million to $1.33 million from $2.18 million in the prior year quarter, primarily due to the divestiture of the Lori Goldstein brand [131]. - Net loss attributable to Xcel Brands, Inc. stockholders was $2.80 million for the current quarter, compared to a net loss of $6.29 million for the prior year quarter [141]. - Non-GAAP net loss was approximately $1.37 million, or $0.58 per diluted share, for the current quarter, compared to a non-GAAP net loss of $1.80 million, or $0.88 per diluted share, for the prior year quarter [142]. - Adjusted EBITDA for the current quarter was approximately $(0.70) million, compared to approximately $(1.57) million for the prior year quarter [143]. - As of March 31, 2025, unrestricted cash and cash equivalents were $0.3 million, down from $1.3 million as of December 31, 2024 [149]. - Working capital deficit was approximately $0.6 million as of March 31, 2025, compared to working capital of $0.8 million as of December 31, 2024 [151]. - As of March 31, 2025, the company incurred a net loss of $(2.80) million, with net cash used in operating activities of approximately $1.43 million, a decrease from $(2.61) million in the prior year quarter [157][158]. Cost Management - Direct operating costs and expenses decreased by approximately $1.68 million, from $3.96 million in the prior year quarter to $2.28 million in the current quarter, due to restructuring and cost reduction actions [132]. - The company has reduced its direct operating expenses to an expected run rate of less than $10 million per annum as of the end of the first quarter of 2025 [132]. - The company has restructured its business operations, reducing direct operating costs from approximately $8 million per quarter in 2022 to less than $2.5 million per quarter, resulting in over $22 million in annualized cost savings [173]. Capital and Financing - The company is actively pursuing an equity offering to secure additional capital, with substantial doubt about its ability to meet financial obligations without further funding [154][155]. - On April 21, 2025, the company amended its loan agreement, resulting in a repayment of $1.5 million of the $3.95 million Term Loan A and an additional Term Loan B of $5.12 million [164]. - Net cash provided by financing activities in the current quarter was $2.05 million, primarily from the delayed draw portion of the December 2024 term loan agreement [162]. - The company has no off-balance sheet arrangements that could materially affect its financial condition or liquidity [177]. - The company is currently in compliance with all applicable financial covenants following the recent refinancing [169]. Business Strategy and Growth - The company aims to build a diversified portfolio of lifestyle consumer products brands through organic growth and strategic acquisitions [128]. - The company plans to diversify its licensed products and distribution channels to reduce dependence on specific retailers and markets, focusing on brands like Halston and C Wonder [171]. - The company has launched new brands, including TowerHill by Christie Brinkley and LB70 by Lloyd Boston, and plans to introduce two new co-branded collaborations in Spring 2026 [172]. - The company generated over $5 billion in retail sales via live streaming and interactive television channels [127]. Market Conditions - The company continues to face headwinds from poor economic conditions, inflation, and rising consumer debt levels, which may negatively impact demand for its products [175].

Revenue Performance - BARK's total revenue for fiscal 2025 was approximately $430 million, with Direct-to-Consumer (DTC) sales representing 85.9% of total revenue[23]. - Revenue from the commerce segment, which includes retail sales, totaled $68 million, reflecting a 27.2% increase compared to fiscal 2024[42]. - Total revenue for the fiscal year ended March 31, 2025, was $484.2 million, a decrease of 1.2% compared to $490.2 million in fiscal 2024[192]. - Direct to Consumer revenue decreased by $20.6 million, or 4.7%, primarily due to a 5.1% decrease in Total Orders and a 1.0% decrease in Average Order Value[193]. - Commerce revenue increased by $14.6 million, or 27.2%, driven by sales volume from existing and new customers[194]. - Total revenue for the fiscal year ended March 31, 2025, was $490.2 million, a decrease of $45.1 million, or 8.4%, compared to the previous year[203]. Product Categories - The consumables category, which includes treats, kibble, and supplements, accounted for about one-third of total revenue in fiscal 2025, indicating significant growth potential[32]. - BARK's toys & accessories revenue was approximately $262.3 million in fiscal 2025, down 8% from fiscal 2024, prompting a strategic shift towards consumables[27]. - BARK Air, a new service offering for dog travel, generated $5.8 million in revenue in its first fiscal year, showcasing strong customer demand[33]. - The company aims to expand its product offerings, particularly in the consumables category, to increase average order value and attract new customers[162]. Operational Efficiency - The company achieved its first full year of positive Adjusted EBITDA in fiscal 2025, driven by operational efficiency and improved gross margins[44]. - Operating expenses decreased by 3.0% to $337.1 million in fiscal 2025, compared to $347.7 million in fiscal 2024[192]. - General and administrative expenses decreased by $15.0 million, or 5.6%, to $253.4 million for the fiscal year ended March 31, 2025, primarily due to reduced shipping costs and headcount[197]. Market Trends and Challenges - The annual spend on pets in the U.S. was approximately $152 billion in 2024, representing a 3% increase from 2023, highlighting a growing market opportunity[21]. - The company faces macroeconomic challenges, including rising inflation and supply chain disruptions, which may impact consumer spending and overall business performance[165]. - Economic downturns and macroeconomic conditions can adversely affect consumer discretionary spending, impacting BARK's revenue[77]. Customer Engagement and Technology - BARK's unified e-commerce platform, launched on Shopify, aims to enhance customer experience and cross-selling capabilities across its product suite[43]. - The company serves over 200,000 customers each month through its customer service team, leveraging data from these interactions for product development[158]. - The reliance on third-party SaaS technologies for critical business functions poses risks; any service interruptions could disrupt operations and increase expenses[95]. Risks and Compliance - The company is subject to various regulations affecting its operations, including those related to consumer protection, data security, and product safety[61][64]. - The company faces risks related to customer acquisition costs, which may exceed expectations, impacting revenue growth and operational efficiency[69]. - The company may face supply chain disruptions due to natural disasters, pandemics, or geopolitical developments, which could materially affect operations[86]. - The complexities of managing omnichannel operations could adversely impact inventory management and operational efficiency, affecting financial results[88]. Financial Metrics and Future Outlook - Adjusted Net Loss is calculated by excluding various expenses including stock-based compensation and restructuring charges[213]. - The company intends to retain future earnings for business expansion and does not expect to pay dividends in the foreseeable future[126]. - The stock price may be volatile and decline due to various factors, including fluctuations in revenue and results of operations[120].

Financial Performance - Total revenue for the three months ended April 30, 2025, was $208,097,000, a decrease of 5.0% compared to $221,277,000 for the same period in 2024[19]. - Net income attributable to Verint Systems Inc. for the three months ended April 30, 2025, was $1,622,000, down 89.4% from $15,241,000 in the same period of 2024[19]. - Operating income decreased significantly to $5,072,000 for the three months ended April 30, 2025, compared to $24,445,000 for the same period in 2024, reflecting a decline of 79.3%[19]. - Cash flows from operating activities were $26,323,000 for the three months ended April 30, 2025, a decrease of 56.5% from $60,717,000 in the same period of 2024[26]. - Comprehensive income attributable to Verint Systems Inc. was $35,744,000 for the three months ended April 30, 2025, compared to $7,962,000 in the same period of 2024, indicating a significant increase[21]. - Net income for the three months ended April 30, 2025, was $1.9 million, a significant decrease from $15.4 million in the same period of 2024[53]. - The effective income tax rate for the three months ended April 30, 2025, was 57.5% on pretax income of $4.5 million, compared to an effective rate of 34.1% on pretax income of $23.3 million for the same period in 2024[138][139]. Assets and Liabilities - Total current assets decreased from $578.8 million as of January 31, 2025, to $516.3 million as of April 30, 2025, representing a decline of approximately 10.8%[17]. - Cash and cash equivalents decreased from $215.7 million to $180.9 million, a reduction of about 16.1%[17]. - Accounts receivable decreased from $203.1 million to $172.4 million, reflecting a decrease of approximately 15.1%[17]. - Total liabilities increased from $964.5 million to $925.7 million, a decrease of about 4.0%[17]. - Long-term debt decreased from $312.8 million to $0, indicating a significant reduction in debt obligations[17]. - Total stockholders' equity increased from $889.3 million to $896.5 million, an increase of approximately 0.2%[17]. - Total debt as of April 30, 2025, was $413.1 million, with no long-term debt reported[83]. Revenue Breakdown - Total revenue for the three months ended April 30, 2025, was $208.1 million, a decrease of 5.9% from $221.3 million in the same period of 2024[45]. - Recurring revenue for the three months ended April 30, 2025, was $173.6 million, slightly up from $173.5 million in 2024, with total SaaS revenue increasing to $147.5 million from $141.0 million[45]. - Nonrecurring perpetual revenue decreased to $17.0 million from $24.9 million year-over-year, while nonrecurring professional services and other revenue fell to $17.5 million from $22.8 million[45]. - Revenue in the Americas totaled $143.6 million, down 11.0% from $161.3 million in the prior year[187]. - EMEA revenue increased to $43.1 million, up 9.0% from $39.3 million in the previous year[187]. - APAC revenue was $21.4 million, a slight increase from $20.7 million year-over-year[187]. Expenses and Costs - Research and development expenses increased to $40,641,000 for the three months ended April 30, 2025, up from $36,730,000 in the same period of 2024, reflecting a growth of 8.2%[19]. - The total stock-based compensation expense for the three months ended April 30, 2025, was $15.467 million, a decrease from $18.021 million in the same period of 2024[166]. - Cash paid for interest in Q1 2025 was $1,952,000, down from $2,210,000 in Q1 2024, a decrease of about 11.7%[105]. - The company is actively managing costs to mitigate inflationary pressures affecting customer spending behavior[307]. Acquisitions and Investments - The acquisition of Cogito Corporation on October 11, 2024, involved a total purchase price of $50.271 million, including $38.186 million in cash and $11.786 million in contingent consideration[65][70]. - The acquisition of Cogito resulted in the recognition of $27.1 million in goodwill, with identifiable intangible assets valued at $25.8 million[67][70]. - The company completed the acquisition of a privately-held company for a SAFE investment of approximately $1.7 million during the three months ended April 30, 2024[155]. Stock and Shareholder Information - The company repurchased and retired 2,532,000 shares of common stock during the three months ended April 30, 2025, at a cost of $42,324,000[23]. - A new stock repurchase program was authorized for up to $200,000,000 from August 29, 2024, to August 29, 2026[129]. - The maximum number of shares of common stock that could be issued upon conversion of the outstanding shares of Preferred Stock was approximately 9.6 million shares as of April 30, 2025[114]. - The Series A Preferred Stock has a conversion price adjusted to $36.38 per share as of April 30, 2025, reflecting a significant premium over its initial conversion price[113]. Financial Covenants and Debt - The company issued $315.0 million in 0.25% convertible senior notes due April 15, 2026, with an effective interest rate of approximately 0.83%[84][87]. - The Revolving Credit Facility was increased from $300.0 million to $500.0 million, maturing on March 25, 2030, with an interest rate of 5.82% as of April 30, 2025[94][96]. - The company has a financial covenant requiring a Leverage Ratio of no greater than 4.50 to 1 for the Revolving Credit Facility[98]. Risks and Future Outlook - The company highlighted risks related to technological advancements and competition in the market, particularly in AI and SaaS strategies[10]. - The company continues to evaluate the impact of new accounting standards, including ASU No. 2024-03 and ASU 2024-04, which will affect future disclosures and financial reporting[40][41].

Revenue Performance - Total revenue for 2024 was $8.7 billion, with over 70% generated outside the United States, and TOMMY HILFIGER and Calvin Klein brands together accounted for over 95% of revenue [144]. - In the first quarter of 2025, revenue was $1.984 billion, a 2% increase from $1.952 billion in the same period of 2024 [162]. - Approximately 6% of revenue and 20% of income before interest and taxes were generated in China in 2024, with ongoing investigations by China's Ministry of Commerce posing potential risks [146]. - EMEA revenue increased by $45 million, or 5%, driven by growth in wholesale and direct-to-consumer businesses [164]. - Americas revenue increased by $39 million, or 7%, with a negative impact of $5 million, or 1%, from foreign currency translation [164]. - APAC revenue decreased by $51 million, or 13%, primarily due to a challenging consumer environment and a decline related to the Lunar New Year shopping period [164]. Financial Charges and Expenses - The company recorded pre-tax noncash goodwill and other intangible impairment charges of $480 million in Q1 2025 due to increased discount rates [154]. - Selling, general and administrative expenses in Q1 2025 were $1.024 billion, representing 51.6% of revenue, a slight decrease from 52.1% in Q1 2024 [162]. - The effective tax rate for Q1 2025 was 87.2%, compared to 19.2% in Q1 2024, reflecting significant losses [162]. - Gross profit for Q1 2025 was $1.162 billion, or 58.6% of total revenue, down from $1.199 billion, or 61.4% in Q1 2024 [168]. - The company expects a gross margin decrease of approximately 250 basis points for the full year 2025 compared to 2024 [169]. - Noncash impairment charges of $480 million were recorded in Q1 2025, including $426 million related to goodwill [173]. Cash Flow and Capital Management - Cash and cash equivalents decreased by $557 million to $191 million as of May 4, 2025, primarily due to stock repurchase activities [186]. - Cash used by operating activities was $71 million in Q1 2025, relatively flat compared to $67 million in Q1 2024 [189]. - Capital expenditures in Q1 2025 were $27 million, down from $39 million in Q1 2024, with a projected total of approximately $200 million for the full year 2025 [194]. - Cash dividends paid on common stock totaled $2 million in both Q1 2025 and Q1 2024, with a projected total of approximately $8 million for 2025 [195]. - The company completed the sale of women's intimates businesses for net proceeds of $156 million in Q4 2023, with an additional $10 million earnout received in Q1 2024 [192]. - The company repurchased $500 million of common stock under an ASR agreement, receiving approximately 4.6 million shares at a price of $76.43 per share [197]. Debt and Financing - As of May 4, 2025, the company had $115 million of borrowings outstanding under the commercial paper program as of May 4, 2025, with a weighted average interest rate of 5.15% [203]. - The company entered into delayed draw term loan facilities with aggregate commitments of $700 million, maturing in April 2026 [204]. - The company maintained compliance with all applicable financial and non-financial covenants under its financing arrangements as of May 4, 2025 [218]. - The issuer credit rating was BBB- by Standard & Poor's and Baa3 by Moody's, both with a positive outlook as of May 4, 2025 [219]. Foreign Currency Impact - The company anticipates that the translational impact of foreign currency on 2025 revenue and net income will be immaterial compared to 2024 [157]. - During the thirteen weeks ended May 4, 2025, the company recognized favorable foreign currency translation adjustments of $234 million, primarily due to a 9% weakening of the United States dollar against the euro [226]. - A 10% change in foreign currency exchange rates against the United States dollar would result in a change in the fair value of foreign currency forward contracts of approximately $110 million [229]. - The company designated €1.125 billion of senior notes as net investment hedges against its investments in foreign subsidiaries using the euro as their functional currency [230]. - A 10% change in the euro against the United States dollar would result in a change in the fair value of net investment hedges of approximately $180 million [231]. Pension and Benefit Costs - A 1% change in the assumed rate of return on pension plan assets would result in a change to 2025 net benefit cost of approximately $4 million [232]. - A 0.25% change in the assumed discount rate would result in a change to 2025 net benefit cost of approximately $16 million [232]. Strategic Initiatives - The PVH+ Plan aims to enhance the desirability of Calvin Klein and TOMMY HILFIGER, positioning PVH as a top-performing brand group in the sector [145]. - The transition of previously licensed women's product categories in-house is expected to result in a less than 1% increase in revenue and a 50 basis point decline in gross margin in 2025 [156]. - The company expects equity in net income of unconsolidated affiliates for full year 2025 to be relatively flat compared to 2024 [178].

Financial Performance - For the three months ended April 30, 2025, Couchbase reported revenue of $56.5 million, a 10% increase from $51.3 million in the same period of 2024[106]. - Annual recurring revenue (ARR) as of April 30, 2025, was $252.1 million, up 21% from $207.7 million in 2024[106]. - The net loss for the three months ended April 30, 2025, was $17.7 million, compared to a net loss of $21.0 million in the same period of 2024[106]. - Total revenue for the three months ended April 30, 2025, was $56,523,000, an increase of 10.8% from $51,327,000 in the same period of 2024[129]. - Non-GAAP gross profit for the same period was $50,142,000, compared to $46,122,000 in 2024, resulting in a non-GAAP gross margin of 88.7%[129]. - Loss from operations decreased to $18,843,000 in Q2 2025 from $22,540,000 in Q2 2024, with a non-GAAP operating loss of $4,181,000[131]. - Non-GAAP net loss attributable to common stockholders was $3,017,000 for Q2 2025, improving from $5,152,000 in Q2 2024, with a non-GAAP net loss per share of $0.06[133]. - Free cash flow for the three months ended April 30, 2025, was $(8,643,000), a decrease from $564,000 in the same period of 2024[135]. - Gross profit for the three months ended April 30, 2025, was $49.7 million, with a gross margin of 87.9%, down from 88.9% in 2024[155]. Revenue Composition - Subscription revenue accounted for 97% of total revenue for the three months ended April 30, 2025, compared to 96% in 2024[107]. - Subscription revenue increased to $54,843,000 in Q2 2025, up from $49,038,000 in Q2 2024, driven by growth in term-based software licenses and DBaaS offerings[151]. - Subscription revenue increased by $5.8 million, or 12%, driven primarily by existing customers, with 99% of the increase attributed to this group[153]. Customer Growth - The total number of customers grew to 937 in 2025, up from 807 in 2024, with Couchbase Capella customers increasing to 309 from 236[125]. - The dollar-based net retention rate exceeded 115% in six of the past eight quarters, indicating strong expansion within existing customers[118]. Operating Expenses - Total operating expenses for Q2 2025 were $68,510,000, slightly higher than $68,185,000 in Q2 2024, with research and development expenses at $18,490,000[151]. - Research and development expenses were $17.8 million, representing 33% of revenue, a decrease from 35% in the prior year[157]. - Sales and marketing expenses increased by $0.4 million, or 1%, totaling $38.2 million, which is 68% of revenue[158]. - General and administrative expenses decreased by $1.4 million, or 11%, to $11.2 million, representing 20% of revenue[159]. - Stock-based compensation expense totaled $13,384,000 in Q2 2025, down from $14,627,000 in Q2 2024[151]. - The company anticipates an increase in research and development expenses as it continues to invest in platform features and functionalities[143]. Cash and Liquidity - As of April 30, 2025, the company had $141.8 million in cash, cash equivalents, and short-term investments[165]. - Cash provided by investing activities for Q2 2025 was $1.4 million, a decrease from $3.7 million in Q2 2024, primarily due to short-term investments and property equipment additions[170][171]. - Cash provided by financing activities for Q2 2025 was $2.6 million, down from $5.1 million in Q2 2024, with $1.2 million from stock option exercises and $1.4 million from the Employee Stock Purchase Plan[172][173]. - As of April 30, 2025, cash and cash equivalents totaled $28.0 million, with short-term investments at $113.8 million, indicating a stable liquidity position[180]. Market Conditions and Risks - Macroeconomic conditions have led to longer deal cycles and increased budget scrutiny, impacting business spending[115]. - The company expects revenue to vary based on new subscriptions, customer renewals, and fluctuations in DBaaS consumption[138]. - The company does not expect a 10% change in interest rates to materially affect its results of operations or cash flows due to the short-term nature of its investment portfolio[180]. - A hypothetical 10% change in the value of the U.S. Dollar against other currencies would not have a material impact on the company's financial condition or cash flows as of April 30, 2025[183]. - The company remains exposed to market risks, particularly fluctuations in interest rates and foreign currency exchange rates[179]. Corporate Governance and Compliance - There have been no material changes in contractual obligations and commitments since the fiscal year ended January 31, 2025[175]. - The company has entered into indemnification agreements with directors and officers, with no current claims that could materially affect financial conditions[176]. - There have been no material changes to critical accounting policies and estimates since the last annual report[177]. - The company has not engaged in hedging foreign currency transactions to date, although it may consider this in the future[182].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | Cayman Islands | 98-1830736 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | 1845 Waln ...