Revenue Growth - Income from operations increased by 35% to $8.9 million in the NRS segment, with recurring revenue rising 22% to $35.3 million[2] - Fintech segment total revenue grew by 15% to $42.7 million, with income from operations nearly doubling, up 97% to $6.4 million[2] - net2phone subscription revenue increased by 10% to $23.0 million, contributing to a 94% rise in income from operations to $1.9 million[2] - Consolidated revenue for IDT Corporation rose by 4% to $322.8 million, with gross profit increasing by 10% to $118.2 million[2] - BOSS Money digital revenue increased by 20% to $27.9 million, with total Fintech segment revenue reaching $42.7 million[12] - NRS total revenue for 1Q26 was $37.1 million, up from $30.4 million in 1Q25, representing a growth of 22% in recurring revenue[58] - NRS total revenue for the trailing twelve months (TTM) was $135.5 million[58] Profitability - Adjusted EBITDA for IDT Corporation grew by 26% to $37.9 million, reflecting strong performance across segments[2] - Net income attributable to IDT Corporation was $22.4 million in the three months ended October 31, 2025, compared to $17.2 million in the same period last year[36] - Earnings per share attributable to IDT Corporation common stockholders was $0.89 for both basic and diluted shares in 1Q26[36] - Net income for the three months ended October 31, 2025, was $24,096,000, an increase of 30.0% compared to $18,483,000 for the same period in 2024[38] - Adjusted EBITDA for 1Q26 was $37,900,000, reflecting a 25.0% increase from $30,000,000 in 1Q25[40] - Non-GAAP net income for 1Q26 was $23.6 million, up from $18.1 million in 1Q25, indicating a year-over-year increase of about 30.4%[57] - Basic earnings per share for 1Q26 were $0.89, compared to $0.68 in 1Q25, representing a growth of approximately 30.9%[57] Cash Flow and Capital Expenditures - IDT's cash and cash equivalents totaled $220.0 million as of October 31, 2025, with current assets at $550.5 million and current liabilities at $305.4 million[19] - Net cash used in operating activities in 1Q26 was $10.1 million, a decline attributed to working capital timing[20] - Capital expenditures increased to $5.8 million in 1Q26 from $5.3 million in 1Q25[21] - Cash, cash equivalents, and restricted cash at the end of the period were $313,166,000, down from $341,832,000 at the beginning of the period, representing a decrease of 8.5%[38] - Capital expenditures for the three months ended October 31, 2025, were $5,821,000, compared to $5,278,000 in the same period of 2024, indicating an increase of 10.3%[38] - Net cash used in operating activities was $(10,140,000) for the three months ended October 31, 2025, compared to $164,000 for the same period in 2024[38] Strategic Initiatives - The company plans to introduce the first generation of the BOSS Wallet, enhancing customer engagement and rewards[6] - In 1Q26, net2phone launched its AI coaching agent, Coach, following the first sales of its AI agent[17] - The company aims to enhance transparency in financial reporting by providing non-GAAP measures that reflect core operational strengths[45] - The company revised its non-GAAP Adjusted EBITDA definition to exclude non-cash compensation expense, enhancing comparability with peers[39] Operational Metrics - The average recurring revenue per terminal in the NRS segment rose by 6% to $313, driven by increased utilization of premium services[10] - Digital channel send volume for BOSS Money increased by 34% year-over-year, indicating strong transaction growth[13] - Customer funds deposits increased to $10,608,000 in 1Q26 from $2,810,000 in 1Q25, showing significant growth[38] - The number of seats served in net2phone's cloud communications offerings is a strong indicator of top-line growth and performance[60] - BOSS Money's digital send volume is a key operational metric for evaluating the performance of the digital remittance channel[62] Shareholder Returns - IDT Corporation repurchased 158 thousand shares of common stock for $7.6 million during the quarter[2] - The Board of Directors declared a quarterly cash dividend of $0.06 per share, payable on December 23, 2025[24] Performance Metrics - The 'Rule of 40' score for NRS is calculated by adding the growth rate of recurring revenue to the Adjusted EBITDA margin, indicating a balance between growth and profitability[52] - IDT's Adjusted EBITDA margin for 1Q26 was approximately 39.9%, calculated as Adjusted EBITDA divided by GAAP revenue[56] - NRS' 'Rule of 40' score was 50% for 1Q26, indicating a strong balance between growth and profitability[58] - Adjusted net cash provided by operating activities (non-GAAP) for 1Q26 was $(22.7) million, compared to $(2.6) million in 1Q25[59]

Financial Performance - For the three months ended October 31, 2025, total revenues decreased by 2.3% to $251.2 million compared to $257.0 million for the same period in 2024 [103]. - Revenues from the Power Industry Services segment decreased by 7.8% to $195.5 million, representing approximately 77.8% of consolidated revenues for the quarter [104]. - The Industrial Construction Services segment saw a revenue increase of 19.4%, reaching $49.4 million for the three months ended October 31, 2025 [106]. - The net income for the three months ended October 31, 2025, was $30.7 million, reflecting a 9.7% increase from $28.0 million in the same period of 2024 [103]. - The diluted earnings per share increased by 8.5% to $2.17 for the three months ended October 31, 2025, compared to $2.00 for the same period in 2024 [103]. - For the nine months ended October 31, 2025, consolidated revenues were $682.6 million, a 6.4% increase from $641.7 million in 2024 [114]. - Power Industry Services revenues increased by 11.4%, or $56.7 million, to $552.8 million for the nine months ended October 31, 2025, representing 81.0% of consolidated revenues [115]. - Industrial Construction Services revenues decreased by 14.9%, or $20.1 million, to $114.6 million for the nine months ended October 31, 2025, representing 16.8% of consolidated revenues [117]. - Telecommunications Infrastructure Services revenues for the nine-month period ended October 31, 2025, were $15.1 million, an increase of 38.8% from $10.9 million in 2024 [119]. - Consolidated gross profit for the three months ended October 31, 2025, was approximately $46.9 million, with a gross profit percentage of 18.7%, compared to $44.3 million and 17.2% for the same period in 2024 [109]. - Consolidated gross profit for the nine months ended October 31, 2025, was approximately $128.1 million, with a gross profit percentage of 18.8%, compared to $93.4 million and 14.6% in 2024 [121]. - For the three months ended October 31, 2025, EBITDA was $40.3 million, compared to $37.5 million for the same period in 2024, reflecting a year-over-year increase of 4.8% [148]. - For the nine months ended October 31, 2025, EBITDA was $106.8 million, up from $74.2 million in 2024, representing a year-over-year increase of 43.8% [148]. - Net income for the nine months ended October 31, 2025, was $88.6 million, a 63.7% increase from $54.1 million in 2024 [114]. Project Backlog and Future Opportunities - As of October 31, 2025, the consolidated project backlog amounts to $3.0 billion, significantly up from $1.4 billion on January 31, 2025, primarily driven by the Power Industry Services segment [89]. - The Industrial Construction Services segment's project backlog increased to approximately $158.8 million as of October 31, 2025, up from $53.2 million on January 31, 2025 [102]. - The company is committed to constructing state-of-the-art natural gas-fired power plants, targeting opportunities in the U.S., Ireland, and the U.K. [91]. - The company has received full notice to proceed for multiple significant projects, including an 860 MW natural gas-fired power plant and a 1.4 GW combined-cycle natural gas-fired power plant, both expected to begin construction in the fourth quarter of Fiscal 2026 [92][93]. Cash and Financial Position - As of October 31, 2025, cash and cash equivalents were $306.3 million, an increase of $161.0 million from January 31, 2025 [126]. - The company is in compliance with the financial covenants of its Credit Agreement as of October 31, 2025 [138]. - The company has no remaining cash investment commitments related to solar tax credit entities as of October 31, 2025 [143]. - A loan of $5.0 million was funded to support the development phase of a natural gas-fired power plant, which remains outstanding as of October 31, 2025 [145]. Expenses and Market Risks - Selling, General and Administrative Expenses were $14.3 million for the three months ended October 31, 2025, representing 5.7% of consolidated revenues, compared to $14.0 million and 5.4% in 2024 [110]. - Recent changes in U.S. trade policy may introduce cost and supply chain uncertainties, particularly affecting construction materials and equipment, which could impact project costs and timelines [87]. - There have been no material changes in the company's exposure to market risk during the nine months ended October 31, 2025 [151]. Contributions and Tax Credits - The company made cash contributions of $11.5 million to solar tax credit entities during the nine months ended October 31, 2025 [143]. - The company believes that EBITDA is a meaningful measure for assessing operating performance, although it is not calculated in accordance with U.S. GAAP [146].

Financial Performance - Net sales for the thirteen weeks ended November 1, 2025, were $331.3 million, a 2.6% increase from $324.3 million for the same period in 2024[24] - Gross profit for the thirty-nine weeks ended November 1, 2025, was $278.3 million, compared to $266.9 million for the same period in 2024, reflecting a 4.3% increase[24] - The company reported a net loss of $28.3 million for the thirty-nine weeks ended November 1, 2025, compared to a net loss of $24.3 million for the same period in 2024[24] - For the thirty-nine weeks ended November 1, 2025, the company reported a net loss of $28,329,000 compared to a net loss of $24,336,000 for the same period in the previous year, representing an increase in loss of approximately 16.4%[32] - The Company recorded a consolidated net loss of $28,329 for the thirty-nine weeks ended November 1, 2025, compared to a loss of $24,336 in 2024[72] Assets and Liabilities - Total current assets increased to $445.9 million as of November 1, 2025, from $366.0 million as of February 1, 2025, representing a 22% increase[21] - Total liabilities rose to $704.3 million as of November 1, 2025, compared to $616.4 million as of February 1, 2025, indicating a 14.2% increase[21] - The company’s cash and cash equivalents decreased to $2.2 million as of November 1, 2025, down from $2.8 million as of February 1, 2025[21] - Cash and cash equivalents at the end of the period were $2,246,000, down from $2,666,000 at the end of the previous year[32] - Long-term debt increased from $24,067 in February 2025 to $44,007 in November 2025[74] Operating Expenses - Selling, general, and administrative expenses for the thirteen weeks ended November 1, 2025, were $104.5 million, up from $100.0 million in the same period of 2024, marking a 4.9% increase[24] - Operating lease expense for the thirteen weeks ended November 1, 2025, was $17,452, slightly up from $17,226 in 2024, and for the thirty-nine weeks, it increased from $51,385 to $52,114[65] - The company incurred $9,359,000 in interest expenses during the period, slightly up from $9,013,000 in the previous year[32] - The company’s stock-based compensation expense was $2,400,000 for the thirty-nine weeks ended November 1, 2025, down from $3,438,000 in the same period last year[32] Revenue Breakdown - Revenue from the Camping department decreased from 11.7% in 2024 to 10.4% in 2025 for the thirteen weeks ended, and from 12.5% to 11.3% for the thirty-nine weeks ended[56] - The Hunting and Shooting department accounted for 59.7% of net sales in the thirteen weeks ended November 1, 2025, up from 57.9% in 2024, and 57.2% compared to 56.2% for the thirty-nine weeks ended[56] Market Strategy - The company plans to focus on financial discipline and rigor in response to adverse macroeconomic conditions[16] - The company is exploring new market opportunities and plans to open additional stores in future periods[16] Legal Matters - The company is involved in various legal matters but management does not foresee any material impact on its financial condition or results of operations[113] - A class action lawsuit was filed against the company regarding compensation issues, which is currently being mediated[115] - Another class action lawsuit was filed concerning non-disclosure agreements related to salary information, which is also under mediation[116] Stock and Shares - The weighted average shares outstanding for basic earnings per share increased to 38.5 million for the thirteen weeks ended November 1, 2025, compared to 37.9 million for the same period in 2024[24] - The company did not meet fiscal year 2024 performance targets, resulting in the forfeiture of all shares as of February 1, 2025[107] - As of November 1, 2025, the company had a balance of 125 nonvested performance-based stock awards with a weighted average grant-date fair value of $2.84 per share[107] - During the 39 weeks ended November 1, 2025, the company issued 1,354 nonvested stock units at a weighted average grant date fair value of $1.52 per share[108] - The balance of outstanding nonvested stock units as of November 1, 2025, was 2,024 shares with a weighted average grant-date fair value of $2.54[110]

Store Operations - Tilly's operated 230 stores across 33 states as of November 1, 2025, down from 246 stores the previous year[104] - Tilly's expects to close a total of 21 stores during fiscal 2025, with 14 already closed by November 2025[108] Financial Performance - Net sales for the thirteen weeks ended November 1, 2025, were $139.6 million, a decrease of 2.0% compared to $143.4 million for the same period in 2024[120] - Total net sales for the third quarter were $139.6 million, a decrease of 2.7%, while comparable net sales increased by 2.0%[123] - Total net sales for the 39 weeks ended were $398.5 million, a decrease of 5.6%, with comparable net sales down by 3.0%[130] Comparable Store Sales - Comparable store net sales increased by 2.0% for the thirteen weeks ended November 1, 2025, compared to a decline of 3.4% for the same period in 2024[121] Gross Profit and Margins - Gross profit for the thirty-nine weeks ended November 1, 2025, was $113.0 million, representing 28.4% of net sales, compared to $111.4 million or 26.4% of net sales for the same period in 2024[120] - Gross profit was $42.6 million, or 30.5% of net sales, an improvement from 25.9% last year, with product margins increasing by 390 basis points[124] Operating Loss - Operating loss for the thirteen weeks ended November 1, 2025, was $1.9 million, significantly improved from a loss of $14.1 million for the same period in 2024[120] - Operating loss was $1.9 million, or 1.4% of net sales, significantly improved from a loss of $14.1 million, or 9.8% of net sales, last year[127] Net Loss - Net loss was $1.4 million, or $0.05 per share, compared to a net loss of $12.9 million, or $0.43 per share, last year[129] E-commerce Performance - E-commerce net sales for the thirteen weeks ended November 1, 2025, were $29.3 million, accounting for 21.0% of total net sales[121] - Net sales from physical stores were $110.3 million, a decrease of 0.9%, while e-com net sales were $29.3 million, a decrease of 9.0%[126] Expenses - SG&A expenses decreased to $44.5 million, or 31.9% of net sales, down from 35.7% last year, primarily due to reductions in store payroll and e-com fulfillment labor expenses[125] - Store payroll and related expenses accounted for approximately 47% of total selling, general and administrative expenses in the first nine months of fiscal 2025[106] Cash Flow and Working Capital - Net cash used in operating activities was $4.5 million, a significant improvement from $38.2 million last year, attributed to better inventory management[141] - Working capital decreased to $20.7 million from $31.6 million at the beginning of the fiscal year, primarily due to an increase in accounts payable[138] Tax and Compliance - The effective income tax rate is expected to remain near zero until consistent operating profits are achieved due to a full valuation allowance on deferred tax assets[107] - As of November 1, 2025, the company was in compliance with all covenants and had no outstanding borrowings under its credit agreement, with eligibility to borrow up to $61.6 million[151] Market Risks - As of November 1, 2025, there were no material changes in the market risks described in the Annual Report[154] Accounting Principles - The company prepares financial statements in accordance with generally accepted accounting principles, requiring estimates and assumptions about future events[153]

Financial Performance - For Q3 fiscal 2026, the company's net income was $1.2 million, or $0.05 per diluted share, down from $1.7 million, or $0.07 per diluted share in Q3 fiscal 2025, reflecting a decrease in revenue by 5.2% year-over-year [81]. - Total revenue for Q3 fiscal 2026 was $644.5 million, a decrease of $35.3 million compared to $679.8 million in Q3 fiscal 2025, primarily due to declining agricultural commodity prices and total crop receipts [93]. - Gross profit for the first nine months of fiscal 2026 decreased by 14.2% to $295.6 million, with a gross profit margin decline to 16.6% from 17.7% [113]. - The company reported a total loss before income taxes of $22.7 million for the first nine months of fiscal 2026, compared to income of $8.8 million in the same period of fiscal 2025 [122]. Revenue Breakdown - Equipment revenue decreased by 7.1% to $459.9 million in Q3 fiscal 2026 from $495.1 million in Q3 fiscal 2025, while parts revenue increased by 1.0% to $122.3 million [93]. - Agriculture segment revenue decreased by 12.7% to $420.9 million, primarily due to lower equipment revenue driven by challenging industry conditions [104]. - Europe segment revenue increased by 87.6% to $117.0 million, attributed to higher equipment demand from EU stimulus programs [108]. - Australia segment revenue decreased by 40.4% to $29.9 million, resulting from the normalization of sprayer deliveries after a backlog in fiscal 2025 [110]. - In the first nine months of fiscal 2026, the Agriculture segment revenue decreased by 15.0% to $1,151.1 million compared to $1,353.7 million in the same period of fiscal 2025 [122]. - The Construction segment revenue decreased by 6.8% to $220.8 million in the first nine months of fiscal 2026, down from $237.0 million in the prior year [125]. - The Europe segment revenue increased by 57.9% to $309.0 million for the first nine months of fiscal 2026, compared to $195.6 million in the same period last year [127]. - The Australia segment revenue decreased by 33.0% to $104.4 million in the first nine months of fiscal 2026, down from $155.9 million in the prior year [129]. - Total revenue for the first nine months of fiscal 2026 was $1,785.3 million, an 8.1% decrease from $1,942.2 million in fiscal 2025 [122]. Operating Expenses and Profitability - Operating expenses increased by 1.7% to $100.5 million in Q3 fiscal 2026, with operating expenses as a percentage of revenue rising to 15.6% from 14.5% [96]. - Operating expenses for the first nine months of fiscal 2026 were $289.5 million, a decrease of 1.2%, with operating expenses as a percentage of revenue increasing to 16.2% [115]. - The gross profit for equipment sales increased by 1.8% to $37.5 million, with a gross profit margin of 8.1%, up from 7.4% in the prior year [95]. - The company experienced a decrease in floorplan interest expense by $3.8 million in Q3 fiscal 2026, attributed to lower interest-bearing inventory levels and lower variable interest rates [81]. Market Conditions and Risks - Same-store sales analysis indicates a decline in overall sales performance, reflecting challenging industry conditions [87]. - The projected decline in total crop receipts is approximately 16% since the peak levels reached in 2022, impacting demand for agricultural equipment [78]. - The company is monitoring the potential impact of U.S. tariffs on imports and retaliatory tariffs on exports, which could affect wholesale prices and margins [80]. - The company faces risks related to supply chain disruptions that could affect its ability to meet customer demand [144]. Cash Flow and Financial Position - Net cash provided by operating activities was $83.9 million for the first nine months of fiscal 2026, compared to net cash used of $56.2 million in the prior year [139]. - Net cash used for investing activities decreased to $17.0 million in the first nine months of fiscal 2026 from $29.4 million in fiscal 2025 [140]. - As of October 31, 2025, the company had floorplan payable lines of credit totaling $1.5 billion, including a $875.0 million credit facility with CNH [134]. - As of October 31, 2025, the company had floorplan payables of $739.6 million, with $407.1 million being variable-rate debt [147]. Foreign Exchange and Geopolitical Risks - The company has $1.8 million of net monetary assets in Ukrainian hryvnia (UAH) as of October 31, 2025, and is managing its UAH exposure through reduced asset levels and borrowing [148]. - The continuation of the Russia/Ukraine conflict may lead to significant UAH devaluations, adversely affecting results of operations and cash flows [148]. - The company uses derivative financial instruments, primarily foreign exchange forward contracts, to manage foreign currency exchange rate risk [148]. - A hypothetical 10% change in foreign exchange rates is not expected to materially impact the company's results of operations or cash flows [149]. Strategic Initiatives - The company operates through four segments: Agriculture, Construction, Europe, and Australia, with diverse revenue sources including new and used equipment sales, parts sales, service, and equipment rental [77]. - The company has substantial dependence on CNH for inventory allocation to meet customer demands [144]. - The integration of the O'Connors acquisition presents growth opportunities and potential synergies for the company [144]. - The company anticipates that farm income levels will significantly impact customer demand for agricultural equipment and services [144]. - A one percentage point change in interest rates could impact pre-tax earnings and cash flow by approximately $4.1 million over the next 12 months [147].

Revenue Performance - Revenue for Q3 FY 2026 was $106 million, a 6% increase year-over-year, exceeding guidance[7] - Subscription revenue grew 15% year-over-year to $42 million[7] - Total revenue for the three months ended October 31, 2025, was $105,674,000, representing an increase of 6.5% compared to $99,612,000 for the same period in 2024[23] Profitability and Loss - GAAP net loss for Q3 FY 2026 was $52.5 million, a 32% reduction from $77.6 million in the prior year's same quarter[8] - The net loss for the three months ended October 31, 2025, was $52,479,000, compared to a net loss of $77,590,000 for the same period in 2024, indicating a 32.4% improvement[23] - GAAP net loss for the three months ended October 31, 2025, was $(52,479), or (50%) of revenue, compared to $(77,590) (78%) in the same period last year[29] - Non-GAAP net loss for the three months ended October 31, 2025, was $(31,095), representing (29%) of revenue, compared to $(42,240) (42%) in the prior year[29] Gross Margin and Profit - GAAP gross margin improved to 31%, up from 23% in the prior year's same quarter; non-GAAP gross margin reached a record high of 33%, up from 26%[8] - Non-GAAP gross profit for the three months ended October 31, 2025, was $34,511, with a gross margin of 33%, up from $25,781 (26%) in the prior year[28] - Total gross profit for the nine months ended October 31, 2025, was $91,200, with a gross margin of 30%, compared to $71,981 (23%) for the same period in 2024[28] Expenses - Operating expenses decreased by 16% year-over-year to $76.8 million[8] - Research and development expenses for the nine months ended October 31, 2025, were $104,664,000, a decrease of 5.4% from $110,861,000 in the previous year[23] - Non-GAAP operating expenses for the three months ended October 31, 2025, were $57,462, accounting for 54% of revenue, compared to $58,597 (59%) in the same period last year[29] - Total operating expenses for the nine months ended October 31, 2025, were $248,352, or 82% of revenue, compared to $270,031 (86%) in the prior year[28] Cash and Debt Management - Cash and cash equivalents on the balance sheet as of October 31, 2025, were $180.9 million[8] - Cash and cash equivalents decreased to $180,514,000 as of October 31, 2025, down from $224,571,000 at the beginning of the year[25] - Total outstanding debt was reduced by $172 million, representing more than 50% reduction post quarter end[8] Future Outlook - For Q4 FY 2026, ChargePoint expects revenue between $100 million and $110 million[9] Contracts and Agreements - ChargePoint was awarded a cooperative purchasing contract with Sourcewell for EV charging solutions, marking its third agreement since 2017[8]

Financial Performance - Total revenue increased from $590,956,000 in Q4 2024 to $670,576,000 in Q4 2025, representing a growth of approximately 13.4%[19] - Net income rose significantly from $29,926,000 in Q4 2024 to $62,096,000 in Q4 2025, marking an increase of about 107.5%[19] - Gross profit improved from $508,286,000 in Q4 2024 to $583,106,000 in Q4 2025, reflecting a growth of approximately 14.7%[19] - Total revenue for the three months ended October 31, 2025, was $670.6 million, representing a 13.5% increase from $591.0 million in the same period of 2024[41] - Net income for the three months ended October 31, 2025, was $62.1 million, compared to $29.9 million for the same period in 2024, indicating a significant increase of 107.4%[118] - Annual recurring revenue (ARR) increased to $2,284,051,000 for the three months ended October 31, 2025, up from $1,942,946,000 in the prior year, reflecting strong subscription growth[134] - Gross profit for the three months ended October 31, 2025, was $583,106,000, with a gross margin of 87.0%, compared to $508,286,000 and 86.0% in the same period of 2024[134] - Operating income for the three months ended October 31, 2025, was $49,335,000, resulting in an operating margin of 7.4%, up from $27,250,000 and 4.6% in the prior year[134] - Free cash flow for the three months ended October 31, 2025, was $174,506,000, compared to $151,920,000 in the prior year[134] Revenue Breakdown - Subscription revenue increased from $560.7 million in Q4 2024 to $637.8 million in Q4 2025, reflecting a growth of approximately 13.8%[41] - Professional services revenue for the three months ended October 31, 2025, was approximately $28.9 million, compared to $27.3 million in the same period of 2024, marking a growth of about 5.9%[43] - Revenue from the United States for the three months ended October 31, 2025, was $386.0 million, up from $332.7 million in the same period of 2024, reflecting a growth of 15.9%[121] - Product revenue increased by approximately $47.1 million, or 16%, for the three months ended October 31, 2025, primarily due to increased software revenue driven by growth in software renewals and customer acquisition[188] - Support, maintenance, and other services revenue rose by approximately $32.5 million, or 11%, for the three months ended October 31, 2025, supported by a 10% growth in the end customer base[189] Expenses and Investments - Research and development expenses increased from $173,959,000 in Q4 2024 to $187,482,000 in Q4 2025, indicating a commitment to enhancing solutions and technology[19] - The company plans to continue investing in sales and marketing functions, focusing on major accounts and pipeline growth[11] - The company plans to continue investing in solution development and sales and marketing efforts to capitalize on market opportunities while improving operating cash flow[133] - Sales and marketing expenses increased by $31,832,000 (13%) for the three months ended October 31, 2025, compared to the prior year, primarily due to higher personnel-related costs from an 8% growth in headcount[197] - Research and development expenses rose by $13,523,000 (8%) for the three months ended October 31, 2025, driven by a 13% increase in R&D headcount and higher bonus and benefits costs[198] - General and administrative expenses increased by $7,380,000 (14%) for the three months ended October 31, 2025, mainly due to higher legal and outside services costs and a 9% growth in G&A headcount[199] Cash and Assets - Cash and cash equivalents rose from $769,502,000 as of July 31, 2025, to $780,421,000 as of October 31, 2025[17] - Total assets increased from $3,283,194,000 as of July 31, 2025, to $3,323,992,000 as of October 31, 2025[17] - Cash provided by operating activities increased from $161,751,000 in 2024 to $196,825,000 in 2025, reflecting a growth of 21.6%[25] - Cash, cash equivalents, and restricted cash at the end of the period increased from $716,994,000 in 2024 to $780,436,000 in 2025, marking a rise of 8.8%[25] - The company’s cash, cash equivalents, short-term investments, and available borrowing capacity will be sufficient to meet anticipated cash needs for at least the next 12 months[209] Shareholder Information - The weighted average shares used in computing net income per share attributable to Class A common stockholders, diluted, increased from 288,829 to 296,518[19] - The company repurchased approximately 0.7 million shares of Class A common stock for about $50.0 million at a weighted average price of $71.07 per share during the three months ended October 31, 2025[101] - As of October 31, 2025, approximately $411.5 million remained available for future share repurchases under the authorized program[101] - The company had 1.0 billion shares of Class A common stock authorized, with approximately 270.7 million shares issued and outstanding as of October 31, 2025[99] Debt and Financing - The company issued $862.5 million in aggregate principal amount of 0.50% convertible senior notes due 2029 in December 2024[68] - The company entered into a revolving credit agreement in February 2025 for a senior secured revolving credit facility of $500.0 million, maturing in February 2030[85] - As of October 31, 2025, the company had no borrowings under the Revolver and was in compliance with the financial covenant requiring a total leverage ratio of less than or equal to 3.75:1.00[89][88] Market and Economic Conditions - Macroeconomic conditions, including inflation and geopolitical issues, may impact customer buying patterns and sales cycles[166] - The company generates revenue primarily from the sale of the Nutanix Cloud Platform, with subscription term-based licenses typically ranging from one to five years[167] Compliance and Investigations - The company is cooperating with the DOJ regarding an investigation into historical conduct by a former employee, but does not expect this matter to materially affect its financial position[98]

Financial Performance - Net sales for the three months ended October 31, 2025, were $124.7 million, a decrease of $5.0 million, or 3.9%, compared to the same quarter last year[88]. - Net income for the three months ended October 31, 2025, was $1.9 million, or $0.04 per diluted share, compared to $4.5 million, or $0.10 per diluted share, in the same quarter last year[88]. - For the six months ended October 31, 2025, total net sales were $209.7 million, a decrease of $8.3 million, or 3.8%, from the same period last year[88]. - Operating income for the three months ended October 31, 2025 decreased by $3.4 million to $4.1 million, representing a 45.4% decline compared to the same period in 2024[103]. - For the six months ended October 31, 2025, operating income fell by $4.9 million to $1.2 million, a decrease of 80.7% year-over-year[104]. - Net income for the three months ended October 31, 2025 was $1.9 million, down $2.6 million or 57.8% from $4.5 million in the same quarter of 2024[111]. - The net loss for the six months ended October 31, 2025 was $1.5 million, a decline of $4.2 million or 155.5% compared to a net income of $2.7 million in the prior year[112]. Cost and Expenses - Gross margin for the same period was 24.3%, down from 26.6% in the prior year, primarily due to unfavorable fixed-cost absorption and higher tariffs[92]. - Gross margin for the six months ended October 31, 2025, was 25.0%, down from 26.9% in the prior year, impacted by higher materials costs and tariffs[98]. - Research and development expenses increased by $704,000, or 14.9%, for the six months ended October 31, 2025, due to higher tooling-related costs[102]. - Selling, marketing, and distribution expenses for the three months ended October 31, 2025, increased by $723,000, primarily due to one-time costs related to a grand opening event[101]. Sales Performance - Handgun sales decreased by $3.0 million, or 3.2%, while long gun sales decreased by $453,000, or 1.8%, due to lower consumer demand[89][90]. - Newly introduced products accounted for 42.8% of handgun sales and 38.1% of long gun sales in the quarter[89][90]. Cash Flow and Financing - Cash provided by operating activities was $19.2 million for the six months ended October 31, 2025, a significant improvement of $57.4 million from cash used in operating activities of $38.2 million in the same period of 2024[114]. - Cash used in investing activities increased by $12.0 million to $19.9 million for the six months ended October 31, 2025, primarily due to a $7.3 million increase in capital expenditures[117]. - Cash used by financing activities was $2.1 million for the six months ended October 31, 2025, compared to $24.3 million provided in the same period of 2024[119]. - As of October 31, 2025, the company had $90.0 million of borrowings outstanding on the revolving line of credit, with an average interest rate of 6.28%[123]. - The company expects to spend between $25.0 million and $30.0 million on capital expenditures in fiscal 2026[118]. - As of October 31, 2025, the company had $22.4 million in cash and cash equivalents on hand[128]. - The company believes that its existing capital resources and credit facilities will be adequate to fund operations for at least the next 12 months[128]. Corporate Governance - The Board of Directors has authorized a quarterly dividend of $0.13 per share, payable on January 2, 2026[126]. - There have been no material changes in significant accounting policies as disclosed in the Fiscal 2025 Annual Report[129]. - The company did not enter into or transact any forward option contracts during the period ended October 31, 2025[131].

Exhibit 99.1 Argan, Inc. Reports Third Quarter Fiscal 2026 Results Reports Record Backlog of $3.0 Billion December 4, 2025 – ARLINGTON, VA – Argan, Inc. (NYSE: AGX) ("Argan" or the "Company") today announces financial results for its third quarter of fiscal year 2026 ended October 31, 2025. The Company will host an investor conference call today, December 4, 2025, at 5:00 p.m. ET. Consolidated Financial Highlights ($ in thousands, except per share data) | For the Quarter Ended: | October 31, | | | | | --- | ...

Revenue Growth - Revenue for the three months ended October 31, 2025, was $258.9 million, representing a year-over-year growth of 23% compared to $210.6 million for the same period in 2024[116] - Annualized recurring revenue (ARR) grew 23% year-over-year to $1.1 billion as of October 31, 2025, primarily driven by new customer additions and existing customer adoption of adjacent platform solutions[127] - Revenue for the nine months ended October 31, 2025, increased by $134.2 million to $730.1 million, a 23% increase, attributed to new customer sales and additional licenses[161] Customer Metrics - The number of customers with ARR of $100,000 or more increased by 20% year-over-year to 1,572 as of October 31, 2025, up from 1,310 in 2024[129] - The dollar-based net retention rate remained in expansionary territory as of October 31, 2025, driven by existing customers adopting additional endpoint licenses and adjacent platform solutions[130] Profitability and Loss - Non-GAAP operating income for the three months ended October 31, 2025, was $17.7 million, compared to a loss of $10.7 million for the same period in 2024[124] - The company reported a net loss of $60.3 million for the three months ended October 31, 2025, an improvement from a net loss of $78.4 million for the same period in 2024[116] - The net loss for the three months ended October 31, 2025, was $60.3 million, compared to a net loss of $78.4 million in 2024[149] - The company reported a net loss of $340.5 million for the nine months ended October 31, 2025, which was an increase from a net loss of $217.7 million in the same period of 2024[179][180] Expenses - Cost of revenue increased by 27% to $67.9 million for the three months ended October 31, 2025, compared to $53.3 million in 2024[152] - Gross profit for the three months ended October 31, 2025, was $191.1 million, a 21% increase from $157.4 million in the prior year, resulting in a gross margin of 74%[152][153] - Research and development expenses for the three months ended October 31, 2025, were $83.1 million, up from $70.5 million in 2024[149] - Sales and marketing expenses increased to $126.6 million for the three months ended October 31, 2025, compared to $123.7 million in the same period of 2024[149] - Total operating expenses for the three months ended October 31, 2025, were $264.4 million, an increase from $246.5 million in the prior year[149] - Research and development expenses increased by $12.7 million to $83.1 million, an 18% increase, primarily due to higher personnel-related expenses and cloud hosting costs[154] - Sales and marketing expenses rose by $2.8 million to $126.6 million, a 2% increase, driven by higher personnel-related expenses, partially offset by a decrease in marketing-related expenses[155] - General and administrative expenses decreased by $0.8 million to $51.5 million, a 2% decrease, mainly due to lower litigation expenses[156] - Restructuring charges increased by $3.2 million to $3.2 million, a 100% increase, due to severance payments and employee benefits[157] Cash Flow and Financing - Cash provided by operating activities for the nine months ended October 31, 2025, was $72.2 million, compared to $37.1 million for the same period in 2024[179][180] - Cash used in investing activities during the nine months ended October 31, 2025, was $24.8 million, significantly lower than $85.9 million in the same period of 2024[181][182] - Cash used in financing activities for the nine months ended October 31, 2025, was $76.3 million, primarily due to $101.9 million in common stock repurchases[183] - The company had $873.6 million in cash, cash equivalents, and investments as of October 31, 2025, with an additional $14.3 million in restricted cash[194] - The company may need to seek additional equity or debt financing in the future, depending on various factors including revenue growth and macroeconomic conditions[173] Taxation - The provision for income taxes is expected to increase in fiscal 2026 and beyond due to increased foreign earnings and certain minimum taxes[145] - The provision for income taxes increased by $128.4 million to $133.6 million, a 2452% increase, primarily due to foreign taxes and an unrecognized tax benefit accrual[168] - The company experienced a $136.0 million income tax expense adjustment related to uncertain tax positions during the nine months ended October 31, 2025[188] Market Conditions - The company experienced longer sales cycles and deal downsizing from larger enterprise customers due to current macroeconomic conditions[117] - The company’s go-to-market strategy focuses on acquiring new customers and expanding usage among existing customers through a network of channel partners[114] - The company may enter into arrangements to acquire or invest in complementary businesses, products, and technologies in the future[173] Future Expectations - The company expects research and development expenses to increase in absolute dollars as investments in existing products and services grow[137] - The company anticipates sales and marketing expenses to rise in absolute dollars while decreasing as a percentage of revenue over time[139] - Operating cash flow is influenced by seasonal billing patterns, with the fiscal first quarter being the strongest for collections[177] - A hypothetical 100 basis point change in interest rates would result in a $4.8 million change in the fair market value of the investment portfolio as of October 31, 2025[194]