Financial Performance - For the six months ended October 31, 2025, the company reported net sales of $2.0 billion, a decrease of 4% compared to the same period last year[106]. - Gross profit for the same period was $1.2 billion, also down 4%, but gross margin increased by 0.3 percentage points to 59.5%[106]. - Operating income decreased by 9% to $565 million, with operating margin declining by 1.5 percentage points to 28.9%[106]. - Diluted earnings per share for the six months ended October 31, 2025, were $0.83, a decrease of 13% from $0.96 in the prior year[107]. - For the six months ended October 31, 2025, net sales totaled $2.0 billion, a decrease of $86 million, or 4%, driven by unfavorable price/mix[124]. - Gross profit for the six months ended October 31, 2025, totaled $1.2 billion, a decrease of $45 million, or 4%, with gross margin increasing to 59.5% from 59.2%[129]. - Operating expenses for the six months ended October 31, 2025, totaled $602 million, an increase of $13 million, or 2%, primarily driven by the impact of a restructuring initiative[132]. - Operating income for the three months ended October 31, 2025, totaled $305 million, a decrease of $36 million, or 10%, compared to the same period last year, with an operating margin decrease of 1.7 percentage points to 29.4%[134]. - For the six months ended October 31, 2025, operating income was $565 million, down $57 million, or 9%, with an operating margin decrease of 1.5 percentage points to 28.9%[135]. - The effective tax rate for the three months ended October 31, 2025, increased to 20.2% from 17.6% year-over-year, primarily due to unfavorable prior fiscal year true-ups[136]. - Diluted earnings per share for the three months ended October 31, 2025, decreased 14% to $0.47, driven by the decrease in operating income[138]. Market Performance - The United States market experienced a 9% decline in net sales, primarily due to the end of the Korbel relationship and the absence of the Sonoma-Cutrer brand[112]. - Emerging markets saw a 10% increase in net sales, with Mexico growing by 17% and Brazil by 22%[112]. - Canada's net sales declined 62% due to volumetric declines in the American whiskey portfolio and JD RTDs, attributed to the absence of American-made beverage alcohol from retail shelves in most provinces[116]. - Mexico's net sales increased 17%, driven by higher volumes and prices of New Mix, although tequila sales declined as consumer preferences shifted to lower-priced products[116]. - Brazil's net sales increased 22%, reflecting higher volumes of JDTA and JDTW, supported by continued distribution expansion and favorable retailer ordering patterns[116]. - Net sales for JDTA increased 16%, primarily due to growth in Brazil and favorable timing of retailer ordering patterns[119]. - Net sales for the Rest of Whiskey increased 54%, driven by the launch of JDTB and growth of The GlenDronach, benefiting from an estimated net increase in distributor inventories in the United States[122]. - Non-branded and bulk's net sales decreased 61%, driven by the decline of used barrel sales as demand and pricing adjusted to current market conditions[121]. - New Mix net sales increased 28%, driven by strong growth in Mexico with market share gains in a growing category[120]. Corporate Actions - Brown-Forman reported a gain of $12 million from the sale of the Alabama cooperage in the first quarter of fiscal 2025[85]. - The company recognized a $13 million franchise tax refund in the first quarter of fiscal 2025 due to a change in tax calculation methodology[86]. - A restructuring initiative was approved, resulting in a workforce reduction of approximately 12% and incurring $16 million in related charges during the first and second quarters of fiscal 2026[87]. - The company ended its sales, marketing, and distribution relationship with Korbel Champagne Cellars effective June 30, 2025, impacting net sales and operating income for the non-comparable period[94]. - Brown-Forman acquired Gin Mare Brand, S.L.U. during fiscal 2023, which included adjustments for fair value changes to contingent consideration liabilities[83]. - The divestiture of Finlandia vodka and Sonoma-Cutrer wine businesses occurred in fiscal 2024, with related transition services agreements impacting financial results[84]. - The company reported a net benefit of $18 million related to the collection of substitution drawback claims filed with the U.S. Government[89]. - Organic changes in financial measures are adjusted for acquisitions, divestitures, and foreign exchange to provide a clearer view of performance[83]. - The company underwent a restructuring initiative, reducing its workforce by approximately 12% and closing the Brown-Forman Cooperage, which negatively impacted operating expenses[104]. - The transition of portfolio distribution in California and 13 additional markets positively impacted net sales in the first quarter of fiscal 2026[105]. - The company divested the Sonoma-Cutrer wine business, which negatively affected net sales and operating income but improved gross margin[102]. - The company anticipates organic net sales and organic operating income to decline in the low-single digit range for fiscal 2026[142]. - Estimated capital expenditures for fiscal 2026 have been updated to a range of $110 to $120 million, down from $125 to $135 million[141]. - Cash provided by operating activities for the six months ended October 31, 2025, was $292 million, an increase of $163 million from the same period last year[149]. - Cash used for financing activities during the six months ended October 31, 2025, was $399 million, compared to $129 million in the same prior-year period, reflecting increased net repayments of short-term borrowings and share repurchases[151]. - The company repurchased 226,600 Class A shares and 3,292,906 Class B shares in October 2025, totaling $99 million, with approximately $134 million remaining available under the repurchase program[154]. Economic Environment - The operating environment remains challenging due to macroeconomic uncertainties, impacting consumer confidence and discretionary spending[106]. - Advertising expense was flat for the three months ended October 31, 2025, while SG&A expense was also flat, reflecting a balance between increased investment in campaigns and lower spending across the portfolio[133].

ULTA BEAUTY ANNOUNCES THIRD QUARTER FISCAL 2025 RESULTS Net Sales Increased 12.9% to $2.9 Billion Compared to $2.5 Billion in the Prior Year Quarter Comparable Sales Increased 6.3% Net Income was $230.9 Million or $5.14 Per Diluted Share Company Increases Fiscal 2025 Guidance Bolingbrook, IL – December 4, 2025 – Ulta Beauty, Inc. (NASDAQ: ULTA) today announced consolidated financial results for the thirteen-week period ("third quarter") and thirty-nine-week period ("first nine months") ended November 1, 202 ...

Financial Performance - Revenue for Q3 fiscal 2026 was $818.4 million, an 8% year-over-year increase, with subscription revenue at $801.0 million, a 9% increase [6]. - Billings for Q3 were $829.5 million, a 10% year-over-year increase [6]. - GAAP net income per diluted share was $0.40, compared to $0.30 in the same period last year [6]. - Free cash flow for Q3 was $262.9 million, up from $210.7 million in the same period last year [6]. - Total revenue for the three months ended October 31, 2025, was $818.35 million, a 8.4% increase from $754.82 million in the same period of 2024 [29]. - Subscription revenue reached $800.96 million, up 9.0% from $734.69 million year-over-year [29]. - Operating income for the three months ended October 31, 2025, was $85.36 million, an increase of 44.5% from $59.03 million in the prior year [29]. - Net income for the three months ended October 31, 2025, was $83.73 million, compared to $62.42 million in the same period of 2024, reflecting a year-over-year increase of 34.2% [29]. - Free cash flow for the nine months ended October 31, 2025, was $787.79 million, indicating strong liquidity after capital expenditures [23]. - Total revenue for the nine months ended October 31, 2025, reached $2,382,640,000, up from $2,200,487,000 in the same period of 2024, indicating an increase of approximately 8.3% [45]. Cash Flow and Assets - Cash and cash equivalents decreased to $583.29 million from $648.62 million at the beginning of the year [31]. - Total assets as of October 31, 2025, were $3.98 billion, a slight decrease from $4.01 billion as of January 31, 2025 [31]. - Total cash provided by operating activities for the nine months ended October 2025 was $787,786, compared to $709,360 for the same period in 2024, indicating a growth of 11.0% [43]. Operating Expenses and Margins - Total operating expenses for the three months ended October 31, 2025, were $562.45 million, up from $539.25 million in the same period of 2024 [29]. - GAAP operating margin improved to 10.4% in Q3 2025 from 7.8% in Q3 2024 [40]. - Non-GAAP operating margin for Q3 2025 was 31.4%, compared to 29.6% in Q3 2024, showing an increase of 1.8 percentage points [40]. Customer and Product Developments - Docusign surpassed 25,000 customers on its AI-native IAM platform, with approximately 150 million opted-in agreements in the Docusign Navigator repository [4]. - Docusign achieved FedRAMP Moderate and GovRAMP authorization in Q3, expanding its identity portfolio [11]. - Docusign Navigator is now available in Brazilian-Portuguese and Spanish, and in Japan [11]. - The company announced new integrations with ChatGPT and other AI platforms at the Docusign Discover'25 developer event [7]. - Docusign received the Salesforce Partner Innovation Award for its Docusign for Agentforce solution during Dreamforce [11]. Profitability Metrics - Gross profit for the three months ended October 31, 2025, was $647.80 million, representing a gross margin of 79.2% compared to 79.3% in the same period of 2024 [29]. - GAAP gross profit for Q3 2025 was $647,804, an increase from $598,283 in Q3 2024, representing a growth of 8.5% [37]. - Non-GAAP gross profit for Q3 2025 reached $669,489, compared to $622,370 in Q3 2024, reflecting a year-over-year increase of 7.6% [37]. - GAAP subscription gross profit for Q3 2025 was $650,586, an increase from $600,106 in Q3 2024, reflecting an 8.4% growth [37]. - Non-GAAP subscription gross margin for Q3 2025 was 83.4%, compared to 84.3% in Q3 2024, showing a slight decline of 0.9 percentage points [37]. Contract Liabilities and Receivables - Contract liabilities and refund liability at the end of the period for October 31, 2025, were $1,479,491,000, compared to $1,332,828,000 at the end of October 31, 2024, showing a growth of about 11.0% [45]. - Contract assets and unbilled accounts receivable at the beginning of the period for October 31, 2025, were $13,824,000, down from $17,461,000 at the beginning of the same period in 2024 [45]. - The total contract assets and unbilled accounts receivable at the end of the period for October 31, 2025, were $13,588,000, compared to $18,341,000 at the end of the same period in 2024 [45]. - The company experienced a decrease in contract assets and unbilled accounts receivable at the end of the period, indicating potential challenges in revenue recognition [45].

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 quarterly period ended October 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40528 Sprinklr, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware (State or other Jurisdiction of Incorpor ...

Financial Performance - Subscription ARR grew 34% year-over-year to $1.35 billion as of October 31, 2025[5] - Total revenue increased 48% year-over-year to $350.2 million, with subscription revenue at $336.4 million, a 52% increase from $221.5 million in Q3 FY 2025[6] - Total revenue for the three months ended October 31, 2025, was $350,166,000, representing a 48.2% increase from $236,178,000 in the same period of 2024[29] - Subscription revenue for the nine months ended October 31, 2025, reached $899,008,000, up 53.6% from $585,021,000 in the prior year[29] - Gross profit for the three months ended October 31, 2025, was $282,029,000, compared to $180,032,000 for the same period in 2024, indicating a gross margin improvement[29] - Non-GAAP total gross profit for the nine months ended October 31, 2025, reached $766,853, compared to $485,949 in the same period of 2024, reflecting a 57.8% growth[35] - GAAP total gross margin improved to 81% in Q3 2025 from 76% in Q3 2024, while non-GAAP total gross margin increased to 83% from 79%[35] Cash Flow and Financial Position - Free cash flow reached over $76 million, compared to $15.6 million in Q3 FY 2025[6] - Cash and cash equivalents increased to $307,100,000 as of October 31, 2025, from $186,331,000 at the beginning of the year[31] - The company reported a net cash provided by operating activities of $189,863,000 for the nine months ended October 31, 2025, compared to a cash outflow of $35,369,000 in the prior year[33] - Proceeds from the issuance of convertible senior notes amounted to $1,129,875,000, contributing to the company's financing activities[33] - The company reported a net cash used in investing activities of $(109,760) for Q3 2025, compared to $(72,139) in Q3 2024[37] Customer Growth and Market Position - The number of customers with $100K or more in subscription ARR increased by 27% year-over-year to 2,638[6] - Deferred revenue increased to $968,167,000 as of October 31, 2025, compared to $777,135,000 at the beginning of the year, indicating strong future revenue potential[31] Guidance and Outlook - Fourth quarter revenue guidance is between $341 million and $343 million[11] - Full year 2026 revenue outlook is projected between $1,280 million and $1,282 million[11] - Non-GAAP net loss per share for Q4 FY 2026 is expected to be between $(0.12) and $(0.10)[11] Operational Efficiency - Operating expenses for the nine months ended October 31, 2025, totaled $1,009,365,000, down from $1,439,068,000 in the previous year, reflecting a reduction in costs[29] - Non-GAAP operating expenses for the nine months ended October 31, 2025, were $1,014,253, compared to $887,818 in 2024, reflecting a 14.3% increase[37] - Operating cash flow margin improved to 24% in Q3 2025 from 10% in Q3 2024, indicating enhanced operational efficiency[37] Loss and Margin Improvement - Net loss for the nine months ended October 31, 2025, was $261,862,000, a decrease from $1,039,931,000 in the same period of 2024[29] - Non-GAAP net income for Q3 2025 was $22,853, compared to a loss of $37,782 in Q3 2024, showing a positive turnaround[36] - GAAP net loss per share for Q3 2025 was $(0.32), an improvement from $(0.71) in Q3 2024[36] - GAAP gross margin improved to 80.5%, up from 76.2% in Q3 FY 2025[6] Product Development and Partnerships - Launched Rubrik Agent Cloud to enhance Enterprise AI Agent adoption and risk management[6] - Expanded partnership with CrowdStrike to improve identity security and resilience against cyber threats[11]

Financial Performance - Q2 net sales were $124.7 million, a decrease of $5.0 million, or 3.9%, from the comparable quarter last year[6] - Q2 gross margin was 24.3%, down from 26.6% in the comparable quarter last year[6] - Q2 net income was $1.9 million, or $0.04 per diluted share, compared to $4.5 million, or $0.10 per diluted share, for the comparable quarter last year[6] - Adjusted EBITDAS for Q2 was $15.1 million, or 12.1% of net sales, compared to $19.1 million, or 15.0% of net sales, for the comparable quarter last year[6] - GAAP net sales for the three months ended October 31, 2025, were $124,670,000, a decrease from $129,679,000 in the same period of 2024, representing a decline of approximately 1.0%[19] - Non-GAAP net sales for the six months ended October 31, 2025, were $209,748,000, compared to $213,800,000 in 2024, reflecting a decrease of about 1.5%[19] - The company reported a GAAP gross profit of $30,349,000 for the three months ended October 31, 2025, which is 24.3% of sales, down from 26.6% in the same period of 2024[19] - Non-GAAP adjusted EBITDAS for the six months ended October 31, 2025, was $23,184,000, down from $29,287,000 in the same period of 2024, indicating a margin of 11.1%[21] Cash Flow and Investments - Operating cash flow for Q2 was over $27 million, an increase of $34.7 million over the comparable quarter last year[6] - Operating cash flows for the six months ended October 31, 2025, provided $19,158,000, a significant improvement from cash used of $38,212,000 in the prior year[17] - Free cash flow for the six months ended October 31, 2025, was $3,877,000, compared to a negative free cash flow of $46,216,000 in the same period of 2024[22] - The company’s net cash used in investing activities for the six months ended October 31, 2025, was $19,859,000, compared to $7,879,000 in the prior year[17] - The company’s net cash provided by financing activities for the six months ended October 31, 2025, was a net outflow of $2,099,000, contrasting with a net inflow of $24,345,000 in the same period of 2024[17] Product and Sales Strategy - New products accounted for 38.7% of sales in the quarter, highlighting the success of the innovation strategy[4] - Distributor inventory declined by over 5% from the end of the prior quarter and by 15% compared to the end of October 2024, indicating positive sell-through at retail[4] - The company expects Q3 sales to be 8-10% higher than Q3 fiscal 2025 sales, with no significant impact from channel inventory[4] Dividends and Assets - A quarterly dividend of $0.13 per share has been authorized, to be paid on January 2, 2026[4] - Total assets as of October 31, 2025, were $548.6 million, a decrease from $559.6 million as of April 30, 2025[13] Losses and Expenses - For the six months ended October 31, 2025, the company reported a net loss of $1,494,000 compared to a net income of $2,691,000 for the same period in 2024[17] - The company incurred stock-based compensation expenses of $3,990,000 for the six months ended October 31, 2025, compared to $3,722,000 in the same period of 2024[17]

Financial Performance - Gross transaction volume (GTV) for Q3 2026 reached $21.7 billion, a year-over-year growth of 22% compared to $17.8 billion in Q3 2025[3] - Total revenue for Q3 2026 was $249.2 million, reflecting a 25% increase from $199.3 million in Q3 2025[3] - Non-GAAP income from operations for Q3 2026 was $21.5 million, significantly up from $1.6 million in Q3 2025, resulting in a non-GAAP operating margin of 8.6%[3] - The platform revenue for Q3 2026 was $239.6 million, a 25% increase from $191.2 million in Q3 2025[3] - The company expects total revenue for Q4 2026 to be between $244 million and $246 million, and for the full fiscal year 2026, total revenue is projected to be between $951 million and $953 million[4] - Non-GAAP income from operations for Q4 2026 is anticipated to be between $16 million and $17 million, with full fiscal year 2026 expected to be between $83 million and $84 million[4] Cash Flow and Assets - Net cash provided by operating activities for Q3 2026 was $43.8 million, compared to $15.5 million in Q3 2025[3] - Total current assets increased to $644,012 thousand as of October 31, 2025, up from $572,766 thousand as of January 31, 2025, representing a growth of 12.4%[16] - Net cash provided by operating activities for the three months ended October 31, 2025, was $43,780 thousand, compared to $15,534 thousand for the same period in 2024, indicating a significant increase of 182.5%[18] - Cash and cash equivalents rose to $493,238 thousand as of October 31, 2025, compared to $441,802 thousand as of January 31, 2025, marking an increase of 11.6%[16] - The company reported a net change in cash, cash equivalents, and restricted cash of $21,753 thousand for the three months ended October 31, 2025, compared to $5,710 thousand for the same period in 2024, showing an increase of 281.5%[18] Profitability Metrics - GAAP gross profit for the three months ended October 31, 2025, was $185,055,000, compared to $138,986,000 for the same period in 2024, representing a year-over-year increase of 33.2%[26] - Non-GAAP gross profit for the three months ended October 31, 2025, was $192,119,000, up from $147,342,000 in 2024, indicating a growth of 30.4%[26] - GAAP gross margin improved to 77.2% in Q3 2025 from 72.7% in Q3 2024, while non-GAAP gross margin increased to 80.2% from 77.1% in the same period[26] - Non-GAAP net income for the three months ended October 31, 2025, was $23,814,000, compared to a loss of $1,148,000 for the same period in 2024[33] - Non-GAAP net income for the nine months ended October 31, 2025, was $74,556,000, significantly up from $9,081,000 in 2024[33] Expenses - GAAP sales and marketing expense for the three months ended October 31, 2025, was $78,270,000, an increase from $67,795,000 in 2024[29] - Non-GAAP research and development expense for the three months ended October 31, 2025, was $63,647,000, compared to $54,016,000 in 2024, showing a rise of 17.5%[30] - Non-GAAP general and administrative expense for the three months ended October 31, 2025, was $33,960,000, up from $28,189,000 in 2024, indicating a 20.0% increase[31] - Stock-based compensation expense for the three months ended October 31, 2025, was $49,660 thousand, up from $25,426 thousand in the same period of 2024, representing a substantial increase of 95.2%[18] Losses and Liabilities - The company reported a GAAP loss from operations of $42.2 million in Q3 2026, an improvement from a loss of $44.0 million in Q3 2025[3] - Net loss for the three months ended October 31, 2025, was $39,527 thousand, an improvement from a net loss of $46,460 thousand for the same period in 2024, reflecting a decrease of 14.3%[18] - Total liabilities decreased slightly to $311,651 thousand as of October 31, 2025, from $314,064 thousand as of January 31, 2025, a reduction of 0.8%[16] - The company incurred $19,781 thousand in cash outflows for business acquisitions during the three months ended October 31, 2025[18] Operational Focus - ServiceTitan continues to focus on leveraging competitive advantages to enhance automation in the trades industry[2]

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 September 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-42913 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securi ...

Financial Performance - Net sales for the three months ended November 1, 2025, were $239.1 million, an increase of $16.6 million or 7.5% compared to the same period in 2024, driven by a 7.6% increase in comparable sales[81] - Gross profit for the three months ended November 1, 2025, was $89.8 million, an increase of $11.5 million or 14.7%, with gross profit as a percentage of net sales rising to 37.6%[83] - Selling, general and administrative expenses for the three months ended November 1, 2025, were $78.0 million, an increase of $2.1 million or 2.7%, with SG&A as a percentage of net sales decreasing to 32.7%[84] - Net income for the three months ended November 1, 2025, was $9.2 million, or $0.55 earnings per diluted share, compared to $1.2 million, or $0.06 earnings per diluted share, for the same period in 2024[85] - For the nine months ended November 1, 2025, net sales were $637.7 million, an increase of $27.7 million or 4.5% compared to the same period in 2024, driven by a 5.3% increase in comparable sales[86] - Gross profit for the nine months ended November 1, 2025, was $221.1 million, an increase of $19.1 million or 9.5%, with gross profit as a percentage of net sales increasing to 34.7%[88] - Selling, general and administrative expenses for the nine months ended November 1, 2025, were $229.1 million, an increase of $8.9 million or 4.1%, with SG&A as a percentage of net sales decreasing to 36.0%[89] - Net loss for the nine months ended November 1, 2025, was $6.2 million, or $0.36 loss per diluted share, compared to a net loss of $16.5 million, or $0.86 loss per diluted share for the same period in 2024[90] Tax and Cash Flow - The effective income tax rate for the three months ended November 1, 2025, was 26.1%, a decrease from 63.4% for the same period in 2024, primarily due to improved operating results[85] - The effective income tax rate for the nine months ended November 1, 2025, was -149.6%, a decrease from -3.7% for the nine months ended November 2, 2024, primarily due to improved operating results and one-time discrete tax items[90] - Net cash used in operating activities decreased by $29.8 million to $4.2 million for the nine months ended November 1, 2025, from $34.0 million for the same period in 2024[95] - Net cash provided by investing activities was $5.1 million for the nine months ended November 1, 2025, compared to $22.1 million for the same period in 2024[96] - Net cash used in financing activities for the nine months ended November 1, 2025, was $37.7 million, compared to $24.6 million for the same period in 2024[97] Capital Expenditures and Store Openings - The company expects to spend approximately $10.0 million to $12.0 million on capital expenditures in fiscal 2025, primarily for new store openings and remodels[94] - The company plans to open approximately 6 new stores in fiscal 2025, although actual openings may differ from this plan[94] Risks and Challenges - The company experienced increased costs during 2024 and 2025, impacting sales and consumer confidence[79] - The company faces potential margin erosion due to tariffs and trade restrictions, which could significantly raise merchandise costs[114] - North America growth strategy relies on optimizing customer engagement and opening new stores, which may strain resources and require additional financing[115] - International expansion plans include risks related to different competitive conditions and consumer preferences, potentially impacting operational success[116] - Seasonal fluctuations in sales and inventory levels lead to volatility in quarterly results, with higher sales expected in the third and fourth fiscal quarters[119] - Increased labor costs, including minimum wage and healthcare, could adversely impact operating profit[128] - The company is exposed to foreign currency exchange rate risks, which could materially affect financial condition and results of operations[127] - Integration challenges from acquisitions, such as Blue Tomato and Fast Times, may divert management attention and increase operational inefficiencies[118] - The company relies on vendor relationships for product supply, and deterioration in these relationships could adversely affect business performance[132] - Unseasonable weather conditions could negatively impact inventory compatibility and overall business results[135] - Cybersecurity risks are increasing, and failure to maintain data security could lead to significant expenses and reputational damage[125] - The company relies heavily on key executives for its financial performance, and losing them could hinder growth objectives[136] - Staffing challenges could adversely affect the company's growth strategy and operational results, particularly in the retail sector where turnover is high[137] - Inability to hire qualified store managers and associates may impair new store openings and affect existing store performance[138] - A decline in cash flows from operations could significantly impact the company's ability to fund operations and growth strategies[139] - The company operates a single distribution center in California, and disruptions could materially affect operations and financial condition[140] - Risks from terrorism and violence in shopping malls could lead to decreased consumer traffic and sales[141] - The company faces potential litigation risks that could result in significant costs and impact financial results[143] - Changes in tax laws and obligations could materially affect the company's financial condition and cash flows[148] - Failure to meet analyst expectations could lead to a decline in stock price[149] - Increased scrutiny regarding ESG practices may result in additional costs and risks for the company[152]

Financial Performance - BMO Financial Group reported total assets of $1.5 trillion, making it the seventh largest bank in North America[10]. - The bank achieved a return on equity (ROE) of 11.3% for the full year, reflecting a year-over-year improvement of 150 basis points[36]. - BMO's pre-provision pre-tax earnings growth was significant, supported by disciplined expense management, contributing to positive operating leverage for six out of the last seven years[36]. - BMO achieved a reported earnings per share (EPS) growth of 20.2% for 2025, exceeding the medium-term objective of 7% to 10%[55]. - Reported earnings per share (EPS) increased by 20% to $11.44 in fiscal 2025, while adjusted EPS rose by 26% to $12.16[128]. - Return on equity (ROE) improved to 10.6% on a reported basis and 11.3% on an adjusted basis, compared to 9.7% and 9.8% in fiscal 2024[131]. - The efficiency ratio improved to 58.2% in fiscal 2025 from 59.5% in fiscal 2024, while the adjusted efficiency ratio decreased to 56.3% from 58.6%[137]. - Net income for the year ended October 31, 2025, was CAD 8,725 million, an increase of 19.1% from CAD 7,327 million in 2024[148]. - Total revenue rose to CAD 36,274 million in 2025, up 10.1% from CAD 32,795 million in 2024[148]. - Basic earnings per share increased to CAD 11.46 in 2025, compared to CAD 9.52 in 2024, reflecting a growth of 20.4%[148]. - Total annual shareholder return (TSR) for 2025 was 43.3%, outperforming the Canadian peer group average of 35.8%[143]. Strategic Initiatives - The company aims to reach a medium-term ROE target of 15%[22]. - BMO has made strategic acquisitions, including Burgundy Asset Management, to bolster its presence and capabilities[38]. - The bank is focused on delivering a digital-first, AI-powered business model to enhance client experiences and operational efficiency[44]. - BMO's strategic priorities include superior risk management and a high-performing culture to drive growth and shareholder value[15]. - BMO's Digital-First strategy has led to over 80% of employees actively using AI tools, with more than 3.7 million prompts utilized[78]. - BMO completed the acquisition of Burgundy Asset Management Ltd. on November 1, 2025, enhancing its Wealth Management segment[113]. - The bank announced the sale of 138 branches to First-Citizens Bank, involving approximately US$5.7 billion in deposits and US$1.1 billion in loans[115]. Community Engagement - The bank has committed to investing $1 billion in community initiatives, addressing critical issues and supporting economic growth[40]. - The annual Employee Giving Campaign raised $31 million for charities across Canada and the U.S., with 90% employee participation[83]. - BMO's commitment to community support has resulted in nearly $250 million raised for community organizations over the past decade[50]. - BMO was recognized as one of the World's Most Ethical Companies for the eighth consecutive year, highlighting its commitment to ethical business practices[82]. Risk Management and Compliance - The company reported a CET1 Ratio of 13.3%, exceeding regulatory requirements[55]. - The Enhanced Disclosure Task Force (EDTF) recommendations have been adopted by BMO to enhance risk disclosures, with specific sections detailing risk-related information and governance frameworks[91]. - BMO's risk management framework addresses various risks, including credit, market, operational, and environmental risks, which could materially impact financial position and results[99]. - The company is focused on strategic planning and capital management to navigate potential challenges in the economic environment, including inflationary pressures and changes in regulatory requirements[102]. - The report outlines BMO's plans to meet new key regulatory ratios once applicable rules are finalized, indicating proactive compliance measures[92]. Economic Outlook - Economic uncertainties due to U.S. trade policies are expected to impact growth in both Canada and the U.S., with ongoing trade negotiations shaping future outcomes[164]. - The company anticipates that recent U.S. trade agreements may stabilize the global economic environment moving into 2026[164]. - U.S. real GDP growth moderated to an annual rate of 1.9% in 2025, down from 2.8% in 2024, influenced by slower consumer spending and housing market activity[166]. - Consumer price inflation in the U.S. rose to 3.0% year-over-year in September 2025, up from 2.3% in April 2025, partially due to tariffs[166]. - The unemployment rate in Canada rose to 6.9% in October 2025 and is expected to reach 7.2% before declining as economic growth improves in 2026[165]. - The Canadian dollar weakened against the U.S. dollar in 2025 but is projected to strengthen moderately in 2026, assuming trade tensions ease[165].