Financial Performance - Fourth quarter revenue reached $3.08 billion, representing a 26% year-over-year increase, with growth across all end markets, particularly in Communications and Industrial[4] - Fiscal 2025 revenue totaled $11.0 billion, up 17% compared to fiscal 2024[4] - Revenue for the three months ended November 1, 2025, was $3,076,117, representing a 26% increase from $2,443,205 for the same period last year[25] - The company reported a total of $11,019,707 in revenue for the twelve months ended November 1, 2025, marking a 17% increase from $9,427,157 in the prior year[32] Profitability Metrics - Adjusted diluted earnings per share for fiscal 2025 increased by 22% to $7.79 compared to $6.38 in the previous year[5] - Net income for the three months ended November 1, 2025, was $787,739, compared to $478,072 for the same period last year, reflecting a 64% increase[25] - Operating income for the twelve months ended November 1, 2025, reached $2,932,496, a significant rise from $2,032,798 in the previous year[25] - Adjusted operating income for the twelve months ended November 1, 2025, was $4,622,147, with an adjusted operating margin of 41.9%, compared to 40.9% in the previous year[34] Cash Flow and Shareholder Returns - Operating cash flow for fiscal 2025 was $4.8 billion, and free cash flow was $4.3 billion, accounting for 44% and 39% of revenue, respectively[4] - The company returned 96% of free cash flow to shareholders in fiscal 2025, including $2.2 billion in share repurchases and $1.9 billion in dividends[4] - The company achieved free cash flow of $4,278,650 for the trailing twelve months, which is 39% of revenue[35] Margins and Expenses - The adjusted operating margin for fiscal 2025 was 41.9%, an increase of 100 basis points from the previous year[5] - Gross margin for the twelve months ended November 1, 2025, was $6,773,478, up from $5,381,343, indicating a strong year-over-year growth[25] - For the three months ended November 1, 2025, the company reported a gross margin of $1,941,817, representing a gross margin percentage of 63.1%, up from 58.0% in the same period last year[34] - Operating expenses for the three months ended November 1, 2025, were $996,605, accounting for 32.4% of revenue, a decrease from 34.7% in the same period last year[34] Future Outlook - The company forecasts first quarter fiscal 2026 revenue of $3.1 billion, with an expected operating margin of approximately 31.0%[7] - The projected earnings per share for the three months ending January 31, 2026, is $1.60 reported and $2.29 adjusted, reflecting adjustments related to acquisition expenses[37][38] Market Trends and Strategic Focus - The company emphasized strong bookings trends in the fourth quarter, particularly in the Industrial and Communications markets[3] - Management remains confident in capitalizing on ongoing cyclical recovery and secular growth opportunities despite macroeconomic uncertainties[3] Research and Development - Research and development expenses for the three months ended November 1, 2025, were $467,021, up from $378,903, indicating a focus on innovation[25] Balance Sheet Highlights - Total current assets increased to $7,108,061 as of November 1, 2025, compared to $5,484,654 a year earlier[27] - Long-term debt rose to $8,145,066 as of November 1, 2025, compared to $6,634,313 the previous year, reflecting increased financing activities[27] Tax and Nonoperating Expenses - The effective tax rate for the twelve months ended November 1, 2025, was 16.4%, compared to 8.0% in the previous year[34] - Nonoperating expense for the three months ended November 1, 2025, was $58,012, compared to $53,064 in the same period last year[34] Capital Expenditures - Capital expenditures for the trailing twelve months were $(533,552), impacting the free cash flow generation[35]

Revenue Performance - Reported revenues for Q4 2025 were $264.0 million, a decrease of 7.7% compared to $286.1 million in Q4 2024[9] - Adjusted revenues for Q4 2025 were $263.3 million, down 10.4% on an adjusted constant currency basis[5] - U.S. revenues decreased by 15.2% on both a reported and adjusted constant currency basis[5] - International revenues increased by 2.8% on a reported basis but decreased by 4.0% on an adjusted constant currency basis[5] - The company's reported revenues decreased by $42.7 million, or 3.8%, to $1,080.4 million for the year ended September 30, 2025, compared to $1,123.1 million for the year ended September 30, 2024[11] - The decrease in reported revenues was primarily driven by $52.9 million of unfavorable changes in volume and $3.5 million associated with negative foreign currency translation impacts[11] - For fiscal year 2026, the company expects reported revenues to be between $1,071 million and $1,093 million, reflecting a growth rate of (0.9)% to 1.1%[12] - Adjusted revenues for the twelve months ended September 30, 2025, were $1,079.7 million, a decrease of 4.2% from $1,127.2 million in 2024[27] Profitability Metrics - Gross profit for Q4 2025 was $158.5 million, with a margin of 60.0%, compared to $173.8 million and 60.7% in the prior year[5] - Operating income for Q4 2025 was $56.5 million, with a margin of 21.4%, compared to $26.2 million and 9.2% in the prior year[5] - Net income for Q4 2025 was $26.4 million, with diluted earnings per share of $0.45, compared to $14.6 million and $0.25 in the prior year[5] - The company's net income for the year ended September 30, 2025, was $95.4 million, compared to $78.3 million for the previous year[19] - Net income for the twelve months ended September 30, 2025, was $95.4 million, an increase of 22.7% compared to $78.3 million in 2024[23] - Adjusted Operating Income for the twelve months ended September 30, 2025, reached $337.7 million, compared to $296.9 million for the same period in 2024, reflecting a 13.8% growth[36] - Adjusted Net Income for the twelve months ended September 30, 2025, was $173.9 million, compared to $143.1 million in 2024, reflecting a 21.5% growth[36] Cash Flow and Debt Management - Free cash flow for Q4 2025 was approximately $77 million, compared to $27 million in the prior year quarter[6] - The company reduced debt by approximately $72.4 million in Q4 2025, bringing total fiscal year 2025 debt reduction to approximately $184.5 million[6] - As of September 30, 2025, the company had $228.6 million in cash and equivalents and $1.417 billion of debt principal outstanding[14] - The company repaid approximately $72.4 million under its term loan B facility during the fourth quarter[14] - Payments on long-term debt increased significantly to $184.6 million in 2025 from $34.6 million in 2024[23] - Non-GAAP Free Cash Flow for the twelve months ended September 30, 2025, was $182.4 million, compared to $19.9 million in the previous year, indicating a substantial increase[38] - The company aims to prioritize free cash flow towards paying down debt and creating financial flexibility for future investments[42] Asset and Liability Management - Total current assets decreased from $761.0 million as of September 30, 2024, to $631.4 million as of September 30, 2025[21] - The total liabilities and equity decreased from $1,285.3 million as of September 30, 2024, to $1,090.9 million as of September 30, 2025[21] - Closing cash and equivalents decreased to $228.6 million in 2025 from $274.2 million in 2024[23] Capital Expenditures and Investments - Capital expenditures for the twelve months ended September 30, 2025, were $9.3 million, a decrease from $15.8 million in 2024[23] Other Financial Metrics - Adjusted EBITDA for the twelve months ended September 30, 2025, was $415.3 million, representing a 17.5% increase from $353.4 million in 2024[27] - The adjusted EBITDA margin improved to 38.5% in 2025 from 31.4% in 2024[27] - The company reported a GAAP gross profit margin of 62.6% for the twelve months ended September 30, 2025, down from 65.5% in 2024[32] - Stock-based compensation expense for the twelve months ended September 30, 2025, was $31.6 million, up from $26.3 million in 2024[23] Future Outlook - The company plans to maintain its global leadership position and execute on new product programs in fiscal year 2026[2]

Financial Performance - Clearfield's net sales from continuing operations for Q4 2025 were $41.1 million, a 13% increase from $36.2 million in Q4 2024[3] - Gross profit for Q4 2025 was $14.2 million, representing a 48% increase compared to $9.6 million in the same quarter last year[3] - The gross margin improved to 34.6% in Q4 2025, up from 26.6% in Q4 2024, reflecting an 8 percentage point increase[3] - For the full fiscal year 2025, net sales from continuing operations reached $150.1 million, a 20% increase from $125.6 million in fiscal 2024[4] - Net sales for the year ended September 30, 2025, were $150,134,000, representing a 19.6% increase from $125,568,000 in 2024[21] - Gross profit for the year ended September 30, 2025, was $50,537,000, compared to $25,847,000 in 2024, indicating a significant improvement in profitability[21] - The company reported a net loss of $8,050,000 for the year ended September 30, 2025, compared to a net loss of $12,453,000 in 2024[21] - Income from continuing operations before income taxes for 2025 was $8,667,000, a recovery from a loss of $11,762,000 in 2024[21] Operating Expenses - Operating expenses for fiscal 2025 increased 7% to $48.4 million, but as a percentage of sales, they decreased to 32.3% from 35.9% in fiscal 2024[13] - Operating expenses for the year ended September 30, 2025, were $48,419,000, up from $45,081,000 in 2024, indicating increased operational costs[21] Cash and Liquidity - Cash and cash equivalents increased to $21,493,000 in 2025 from $14,148,000 in 2024, reflecting improved liquidity[24] - Cash and cash equivalents at the end of the period increased to $21,493,000 from $14,148,000, representing a growth of 51.5%[28] - Net cash provided by operating activities was $2,897,000, compared to $4,453,000 in the previous period, indicating a decrease of 34.8%[28] - The net increase in cash and cash equivalents was $6,268,000, contrasting with a decrease of $21,660,000 in the previous period[28] Shareholder Actions - Clearfield's Board of Directors increased the share repurchase program authorization from $65 million to $85 million, reflecting confidence in the company's market opportunity[4] - The company repurchased common stock amounting to $16,653,000, a significant reduction from $33,374,000 in the prior period[28] Inventory and Assets - The company experienced a significant increase in inventories, which rose to $42,031,000 in 2025 from $56,096,000 in 2024[24] - Total current assets decreased to $198,488,000 as of September 30, 2025, down from $229,595,000 in 2024[24] - The company’s total assets decreased to $306,173,000 in 2025 from $315,275,000 in 2024[24] Future Outlook - Clearfield expects fiscal 2026 revenue from continuing operations to be between $160 million and $170 million, with EPS projected between $0.48 and $0.62[4] Divestitures - The company divested its European Nestor Cables business to focus on higher-return opportunities in North America[6] Other Financial Metrics - The weighted average shares outstanding for basic earnings per share were 13,989,489 in 2025, compared to 14,582,450 in 2024, indicating a reduction in share count[22] - Cash paid for income taxes was $1,670,000, up from $160,000, reflecting a substantial increase[28] - The company reported a net cash used in investing activities of $1,796,000, slightly higher than $1,627,000 in the prior period[28] - Cashless exercise of stock options amounted to $2,533,000, compared to $19,000 previously[28] - The effect of exchange rates on cash and cash equivalents resulted in a decrease of $97,000[28] - The net cash provided by discontinued operations was $4,101,000, compared to a cash outflow of $791,000 in the previous period[28] - Right of use assets obtained through lease liabilities were recorded at $4,364,000[28]

Financial Performance - Comparable sales increased by 2.7% in Q3 FY26, compared to a decline of 2.9% in Q3 FY25[2] - Total revenue for Q3 FY26 was $9.67 billion, up from $9.45 billion in Q3 FY25, representing a year-over-year increase of 2.4%[2] - Adjusted diluted EPS for Q3 FY26 was $1.40, compared to $1.26 in Q3 FY25[2] - Domestic revenue for Q3 FY26 was $8.88 billion, reflecting a 2.1% increase driven by comparable sales growth of 2.4%[4] - International revenue increased by 6.1% to $794 million, primarily due to a 6.3% increase in comparable sales[8] - Domestic online revenue reached $2.82 billion, a 3.5% increase, accounting for 31.8% of total domestic revenue[5] - Revenue for the three months ended November 1, 2025, was $9,672 million, an increase of 2.4% compared to $9,445 million for the same period last year[23] - Net earnings for the three months ended November 1, 2025, were $140 million, down from $273 million in the same period last year, leading to a diluted earnings per share of $0.66[23] - Adjusted diluted EPS for the three months ended November 1, 2025, was $1.40, an increase from $1.26 in the same period last year[34] - The diluted EPS for the nine months ended November 1, 2025, was $2.48, down from $3.73 in the same period of 2024[34] Guidance and Projections - The company raised its FY26 adjusted diluted EPS guidance to a range of $6.25 to $6.35, up from the previous guidance of $6.15 to $6.30[11] Profitability and Margins - The domestic gross profit rate decreased to 23.3% from 23.6% in the previous year, attributed to lower product margin rates[6] - Gross profit for the nine months ended November 1, 2025, was $6,491 million, slightly up from $6,467 million in the prior year, resulting in a gross profit margin of 23.3%[23] - For the three months ended November 1, 2025, the operating income was $198 million, representing 2.0% of revenue, compared to $350 million (3.7% of revenue) for the same period in 2024[33] - Adjusted operating income for the nine months ended November 1, 2025, was $1,090 million, slightly up from $1,065 million in the same period of 2024[33] Shareholder Returns - The company returned $234 million to shareholders in Q3 FY26 through dividends and share repurchases[14] Asset and Cash Management - Cash and cash equivalents at the end of the period were $1,194 million, up from $938 million at the same time last year[27] - The company reported a total cash provided by operating activities of $684 million for the nine months ended November 1, 2025, compared to $561 million in the prior year[27] - Total assets decreased to $16,786 million as of November 1, 2025, from $17,018 million a year earlier[25] Impairments and Charges - Best Buy recorded pre-tax non-cash asset impairments of $192 million related to Best Buy Health during Q3 FY26[11] - The company reported a long-lived asset impairment of $21 million for the three months ended November 1, 2025, compared to no impairment in the same period last year[33] - The company incurred restructuring charges of $218 million for the nine months ended November 1, 2025, compared to $4 million in the prior year[27] - The loss on disposal of subsidiaries was $4 million for the nine months ended November 1, 2025, with no comparable loss in the previous year[34] Taxation - The effective tax rate for the three months ended November 1, 2025, was 31.5%, compared to 23.9% in the same period last year[23] - The adjusted effective tax rate for the nine months ended November 1, 2025, was 26.4%, compared to 24.8% in the prior year[33]

Financial Performance - Net sales for Q3 2025 decreased by 2.8% year-over-year to $3.4 billion, with comparable sales down 1.7%[5] - Gross margin increased by 51 basis points to 39.6% of net sales[6] - SG&A expenses decreased by 2.1% year-over-year to $1.3 billion, representing 35.3% of total revenue, an increase of 55 basis points[6] - Operating income for Q3 2025 was $73 million, down from $98 million in the prior year, with an adjusted operating income of $77 million[6] - Net income for Q3 2025 was $8 million, or $0.07 per diluted share, compared to $22 million, or $0.20 per diluted share, in the prior year[6] - Net income for the nine months ended November 1, 2025, was $147 million, a significant increase from $61 million in the same period last year, reflecting a growth of 141%[20] Cash Flow and Liquidity - Cash flow from operating activities was $124 million, a significant improvement from a use of $195 million in the prior year[6] - Net cash provided by operating activities rose to $630 million for the nine months ended November 1, 2025, compared to $52 million in the prior year, indicating a substantial improvement[20] - Cash and cash equivalents at the end of the period were $144 million, down from $174 million, a decrease of 17.24%[20] - The company reported a net cash used in investing activities of $269 million, compared to $363 million in the previous year, showing a reduction of 25.93%[20] - The company had a net cash outflow from financing activities of $351 million, contrasting with a net inflow of $302 million in the prior year[20] Inventory and Assets - Inventory decreased by 5% year-over-year to $3.9 billion[6] - Merchandise inventories decreased from $4,099 million to $3,895 million, a reduction of 4.97% year-over-year[18] - Total assets decreased from $15,054 million in November 2, 2024, to $14,144 million in November 1, 2025, representing a decline of 6.05%[18] - Total current liabilities decreased from $4,393 million to $3,307 million, a decline of 24.74%[18] - Long-term debt increased from $1,174 million to $1,522 million, an increase of 29.6%[18] Dividends and Financial Outlook - Dividends paid decreased significantly from $166 million to $42 million, a reduction of 74.7%[20] - The company raised its full-year 2025 financial outlook following the Q3 results[5] - For the full year 2025, Kohl's expects net sales to decrease by 3.5% to 4% and adjusted diluted EPS in the range of $1.25 to $1.45[11] Leadership Changes - Kohl's Board of Directors appointed Michael J. Bender as CEO effective immediately[4]

Financial Performance - Total sales increased by 7% year-over-year to $2,706 million in Q3 2025, while comparable store sales rose by 1%[4] - Net income for Q3 2025 was $105 million, with diluted EPS at $1.63, compared to $91 million and $1.40 per share in Q3 2024[6] - Adjusted EPS increased by 16% to $1.80, and the company raised its full-year Adjusted EPS guidance to a range of $9.69 to $9.89[6][11] - Net sales for the three months ended November 1, 2025, were $2,706,003, an increase from $2,526,174 for the same period in 2024, representing a growth of approximately 7.1%[24] - Total revenue for the nine months ended November 1, 2025, reached $7,919,531, compared to $7,357,766 for the same period in 2024, indicating a year-over-year increase of about 7.6%[24] - Net income for the nine months ended November 1, 2025, was $299,767, up from $242,871 in the prior year, reflecting a growth of approximately 23.4%[24] - Diluted net income per share for the three months ended November 1, 2025, was $1.63, compared to $1.40 for the same period in 2024, marking an increase of about 16.4%[24] Inventory and Assets - Merchandise inventories were $1,658 million, a 15% increase from Q3 2024, while comparable store inventories decreased by 2%[8] - Merchandise inventories increased to $1,658,435 as of November 1, 2025, compared to $1,440,695 in the prior year, representing a rise of about 15.1%[26] - Total assets grew to $9,596,718 as of November 1, 2025, up from $8,442,860 a year earlier, indicating an increase of approximately 13.6%[26] Debt and Liquidity - The company ended Q3 2025 with $1,532 million in liquidity, including $584 million in unrestricted cash[13] - Total outstanding debt was $2,035 million, with $1,723 million on the Term Loan facility[13] - Long-term debt increased to $2,015,471 as of November 1, 2025, compared to $1,542,712 in the previous year, reflecting a rise of about 30.7%[26] Operating Activities - The company reported net cash provided by operating activities of $293,864 for the nine months ended November 1, 2025, down from $320,212 in the same period of 2024, a decrease of approximately 8.2%[29] - Cash used in investing activities was $837,813 for the nine months ended November 1, 2025, compared to $535,886 in the prior year, indicating an increase of about 56.2%[29] Adjusted Metrics - Adjusted Net Income for the three months ended November 1, 2025, was $107,458,000, compared to $99,895,000 for the same period in 2024, representing an increase of 2.1%[38] - Adjusted Earnings per Share (EPS) for the nine months ended November 1, 2025, was $4.87, up from $4.10 in the same period of 2024, reflecting a growth of 18.9%[38] - Adjusted EBIT for the three months ended November 1, 2025, was $155,907,000, compared to $141,316,000 for the same period in 2024, indicating a year-over-year increase of 10.4%[38] - Adjusted EBITDA for the nine months ended November 1, 2025, reached $738,993,000, compared to $641,990,000 for the same period in 2024, marking an increase of 15.1%[38] Expenses and Charges - SG&A expenses for the three months ended November 1, 2025, totaled $947,518,000, compared to $893,092,000 for the same period in 2024, reflecting an increase of 6.1%[38] - The Company reported net favorable lease costs of $1,891,000 for the three months ended November 1, 2025, down from $2,851,000 in the same period of 2024[38] - Impairment charges for long-lived assets were $3,786,000 for the three months ended November 1, 2025, compared to $3,044,000 for the same period in 2024, indicating an increase of 24.3%[38] Future Outlook - The company plans to open 104 net new stores in Fiscal 2025[14] - Total sales are expected to increase by approximately 8% for the full fiscal year, with comparable store sales projected to rise by 1% to 2%[14] Tax Rate - The effective tax rate on a GAAP basis for the three months ended November 1, 2025, was 24.1%, slightly up from 23.2% in the same period of 2024[39] Share Information - The diluted weighted average shares outstanding for the three months ended November 1, 2025, was 64,068,000, compared to 64,619,000 for the same period in 2024[38] Non-GAAP Measures - The Company believes that non-GAAP measures provide useful supplemental information for evaluating its operations and financial condition, although calculations may vary among companies in the retail industry[37]

Financial Performance - Total revenues for Q3 2025 reached $25.4 million, a 72.0% increase from $14.8 million in Q3 2024, driven by strong growth in Robotaxi services and Licensing & Applications[9] - Revenues for the three months ended September 30, 2025, increased to $25,442 thousand, up 72% from $14,789 thousand in the same period of 2024[34] - Gross profit for the nine months ended September 30, 2025, reached $10,448 thousand, representing a 165% increase compared to $3,947 thousand for the same period in 2024[34] - The net loss for Q3 2025 was $61.6 million, compared to $42.1 million in Q3 2024, with a non-GAAP net loss of $55.0 million[16] - Net loss attributable to Pony AI Inc. for the three months ended September 30, 2025, was $61,315 thousand, compared to a net loss of $41,890 thousand for the same period in 2024[34] - Non-GAAP net loss per ordinary share for the three months ended September 30, 2025, was $(0.14), compared to $(3.50) for the same period in 2024[38] Revenue Sources - Robotaxi services revenues were $6.7 million in Q3 2025, up 89.5% from $3.5 million in Q3 2024, with fare-charging revenues surging over 200% year-over-year[11] - Licensing and applications revenues increased significantly by 354.6% to $8.6 million in Q3 2025 from $1.9 million in Q3 2024, reflecting robust demand for the autonomous domain controller[11] Operational Metrics - The company achieved city-wide unit economics breakeven for Gen-7 Robotaxis in Guangzhou, with daily average orders per vehicle reaching 23[19] - The Gen-7 Robotaxi fleet consists of 961 vehicles, including 667 Gen-7 units, with plans to exceed 1,000 vehicles by year-end and 3,000 by the end of 2026[7] - The company is expanding its Robotaxi operations into new markets, including Qatar, and reinforcing existing markets in Singapore, Luxembourg, and South Korea[10] Expenses - Research and development expenses rose to $60.4 million in Q3 2025, a 79.6% increase from $33.6 million in Q3 2024, primarily due to investments in Gen-7 vehicle development[19] - Research and development expenses for the three months ended September 30, 2025, were $60,384 thousand, a 79% increase from $33,614 thousand in the same period of 2024[34] - Operating expenses for Q3 2025 were $74.3 million, up 76.7% from $42.1 million in Q3 2024, driven by increased personnel costs and professional service fees[14] Financial Position - The dual primary listing in Hong Kong raised over $800 million, enhancing the company's financial position for mass production and market expansion[6] - Total assets decreased from $1,050,821 thousand as of December 31, 2024, to $900,666 thousand as of September 30, 2025[32] - Cash and cash equivalents dropped significantly from $535,976 thousand as of December 31, 2024, to $98,995 thousand as of September 30, 2025[32] - Total liabilities increased from $82,110 thousand as of December 31, 2024, to $88,674 thousand as of September 30, 2025[32] - Free cash flows (Non-GAAP) for the nine months ended September 30, 2025, were $(173,607) thousand, compared to $(85,440) thousand for the same period in 2024[40] - The weighted average number of ordinary shares outstanding used in computing net loss per ordinary share for the three months ended September 30, 2025, was 385,292,553[38]

Revenue Growth and Strategic Plans - The company aims to exceed $6 billion in revenues by the end of fiscal year 2030 as part of its "ROAD 2030" strategic plan[19]. - Revenues for fiscal 2025 increased by $988.5 million, or 54.2%, to $2.8 billion from $1.8 billion in fiscal 2024, driven by $835.2 million from acquisitions and $153.2 million from existing markets[178]. - The company recorded $943.3 million in goodwill on its balance sheet as of September 30, 2025, which is subject to impairment assessments that could materially impact financial statements[112]. Acquisitions and Expansion - In fiscal year 2025, the company completed five acquisitions for approximately $1.5 billion, adding 27 HMA plants and expanding operations in Alabama, Tennessee, Texas, and Oklahoma[19]. - The company acquired eight HMA plants in October 2025 for approximately $262.1 million, further expanding its operations[19]. - The company has acquired 54 businesses to support growth and is evaluating further strategic acquisitions, particularly in the southern United States[67]. Financial Performance - Gross profit for fiscal 2025 rose by $180.8 million, or 70.0%, to $439.1 million, attributed to higher revenues and improved gross profit margins[179]. - Adjusted EBITDA for fiscal 2025 was $423.7 million, with an Adjusted EBITDA Margin of 15.1%, compared to $220.6 million and 12.1% in fiscal 2024[186]. - Net income increased by $32.9 million, or 47.6%, to $101.8 million for fiscal 2025, primarily due to higher gross profit and gains from asset sales[185]. Contract Backlog and Project Management - The company's contract backlog increased to $3.0 billion as of September 30, 2025, up from $2.0 billion a year earlier, with $2.2 billion attributed to uncompleted work on contracts[32]. - Approximately 78% of the contract backlog is expected to be completed within the next 12 months[33]. - The company maintains a contract management strategy that includes detailed bid preparation and monitoring of project progress to ensure financial performance[24][28]. Funding and Debt Management - The company entered into a Term Loan Credit Agreement for $850 million in November 2024, with proceeds used for acquisitions and debt repayment[19]. - As of September 30, 2025, the company had $592.5 million in principal outstanding under Term Loan A and $843.6 million under Term Loan B, totaling $1.436 billion in debt[105]. - The company is exposed to variability in interest payments due to SOFR-based floating rate borrowings, which may increase interest payments amid credit market volatility[106]. Labor and Workforce Management - The company employs 1,639 salaried employees and 4,773 hourly employees as of September 30, 2025, with hourly personnel averaging 4,184 employees throughout the fiscal year[49]. - Labor shortages and increased turnover rates could lead to higher costs, including increased overtime and wage rates, negatively impacting project completion and operational efficiency[82]. - The tightening labor market may hinder the company's ability to attract and retain qualified personnel, affecting project execution and strategic plans[79]. Regulatory and Compliance Risks - Government contracts are subject to various regulations, and violations could materially affect the company's financial condition and operations[60]. - The company has incurred costs related to environmental compliance and may face increased expenditures due to new regulations[45]. - The company must navigate potential legal and regulatory risks, including compliance with environmental laws, which could lead to increased operational costs[96]. Market Conditions and Economic Factors - The company faces potential risks from economic slowdowns, particularly in the Sunbelt region, which could reduce demand for infrastructure projects[54]. - Federal highway funding is subject to uncertainties, including budget deficits and government shutdowns, which could adversely affect the company's operations[57]. - Inflation and supply chain disruptions have increased costs, which may not be fully recoverable, impacting profit margins[65]. Cybersecurity and Technology Risks - Cybersecurity risks pose a threat to information technology systems, which could negatively affect operations and financial condition[75]. - The company has implemented a comprehensive cybersecurity program, including regular scans and vulnerability assessments, to manage material risks from cybersecurity threats[130]. - The board of directors oversees strategic risks and receives periodic reports on cybersecurity risks from management and third-party providers[135]. Shareholder and Stock Information - As of November 20, 2025, the company had 47,947,509 shares of Class A common stock and 8,579,118 shares of Class B common stock, with Class B shares representing approximately 64.1% of the total voting power[117]. - The SunTx Group controls approximately 61.2% of the combined voting power of the company's outstanding common stock, allowing them to elect all board members and control corporate policies[119]. - The company does not intend to pay cash dividends on Class A common stock in the foreseeable future, meaning returns will rely solely on stock price appreciation[127].

Financial Performance - Net sales for the three months ended November 2, 2025, were $41,352 million, an increase of 2.8% compared to $40,217 million for the same period in 2024[20] - Gross profit for the nine months ended November 2, 2025, was $42,399 million, up from $40,274 million, reflecting a growth of 5.3%[20] - Operating income for the three months ended November 2, 2025, was $5,353 million, slightly down from $5,418 million in the prior year, indicating a decrease of 1.2%[20] - Net earnings for the nine months ended November 2, 2025, were $11,585 million, compared to $11,809 million for the same period in 2024, a decline of 1.9%[20] - Total net sales for the nine months ended November 2, 2025, reached $126,485 million, up from $119,810 million for the same period in 2024, indicating a year-over-year growth[45] - Net sales for Q3 2025 were $41.4 billion, a 2.8% increase from $40.2 billion in Q3 2024, driven by GMS acquisition contributing $892 million[99][113] - Net earnings for Q3 2025 were $3.6 billion, or $3.62 per diluted share, compared to $3.65 billion, or $3.67 per diluted share in Q3 2024[99][124] - Gross profit for Q3 2025 was $13.8 billion, maintaining a gross profit margin of 33.4%[118] - Gross profit for the first nine months of fiscal 2025 rose 5.3% to $42.4 billion, with a gross profit margin of 33.5%[134] Assets and Liabilities - Total assets increased to $106,274 million as of November 2, 2025, from $96,119 million as of February 2, 2025, representing a growth of 10.9%[17] - Current liabilities rose to $34,367 million as of November 2, 2025, compared to $28,661 million as of February 2, 2025, an increase of 20.0%[17] - Total receivables, net, increased to $6,765 million as of November 2, 2025, compared to $4,903 million as of February 2, 2025, reflecting a significant growth in customer receivables[31] - Net property and equipment increased to $31.3 billion as of November 2, 2025, from $29.1 billion as of February 2, 2025[50] - Total lease liabilities amounted to $12.406 billion as of November 2, 2025, compared to $11.928 billion as of February 2, 2025[51] - Goodwill increased to $22.267 billion as of November 2, 2025, from $19.475 billion as of February 2, 2025, primarily due to acquisitions[53] Cash Flow and Investments - The company reported a cash flow from operating activities of $12,978 million for the nine months ended November 2, 2025, down from $15,139 million in the prior year, a decrease of 14.3%[28] - Capital expenditures for the nine months ended November 2, 2025, were $2,621 million, compared to $2,384 million in the same period last year, an increase of 9.9%[28] - Cash collateral related to derivative instruments was $444 million and $668 million as of November 2, 2025, and February 2, 2025, respectively[72] - Net cash provided by operating activities decreased by $2.2 billion in the first nine months of fiscal 2025 compared to the same period in fiscal 2024, primarily due to changes in working capital[160] - Net cash used in investing activities decreased by $12.1 billion in the first nine months of fiscal 2025 compared to the same period in fiscal 2024, mainly due to higher cash paid for acquisitions in fiscal 2024[161] - Net cash used in financing activities in the first nine months of fiscal 2025 included $6.9 billion in cash dividends paid and $3.4 billion in repayments of long-term debt[162] Shareholder Returns - The company approved a $15.0 billion share repurchase authorization in August 2023, with approximately $11.7 billion remaining available as of November 2, 2025[74] - The company recorded cash dividends per share of $2.30 for the three months ended November 2, 2025, and $6.90 for the nine months ended November 2, 2025[73] - Approximately $11.7 billion of the $15.0 billion share repurchase authorization remained available as of November 2, 2025[151] - The company paused share repurchases in March 2024 and has not resumed share repurchase activity as of November 2, 2025, with $11.66 billion remaining under the share repurchase program[175] Acquisitions and Business Expansion - The company completed the acquisition of GMS on September 4, 2025, expanding its product offerings in the interior and construction products segment[40] - The company completed the GMS acquisition for approximately $5.5 billion, enhancing its position in the building materials distribution market[103] - Net sales attributable to GMS since the acquisition totaled $892 million for the three and nine months ended November 2, 2025[93] - The preliminary purchase price allocation for GMS included $2.6 billion in goodwill and $1.8 billion in intangible assets[88] Tax and Regulatory Matters - The effective tax rate for fiscal 2025 is not expected to be materially impacted by the One Big Beautiful Bill Act, which allows for 100% expensing of qualified property[33] - The effective income tax rate for Q3 2025 was 24.3%, slightly down from 24.4% in Q3 2024[123] - The effective income tax rate increased to 24.3% for the first nine months of fiscal 2025, compared to 23.9% in the same period of fiscal 2024[139] Operational Metrics - The company’s selling, general and administrative expenses for the three months ended November 2, 2025, were $7,134 million, compared to $6,846 million in the same period last year[42] - The company’s depreciation and amortization expenses for the nine months ended November 2, 2025, totaled $2,090 million, slightly up from $2,073 million in the prior year[42] - Operating expenses increased to $8.5 billion in Q3 2025, representing 20.5% of net sales, up from 19.9% in Q3 2024[109][120] - SG&A expenses increased by $1.9 billion, or 9.1%, to $22.9 billion, representing 18.1% of net sales[136] Market and Risk Factors - There were no material changes to market risks from those disclosed in the 2024 Form 10-K, including exposure to interest rate fluctuations and foreign currency exchange rate fluctuations[166] - There were no material changes in risk factors discussed in the 2024 Form 10-K during the first nine months of fiscal 2025[173] - The company is undergoing a business transformation initiative, which includes upgrading and migrating accounting and finance systems over the next few years[168] Sales Performance - For the three months ended November 2, 2025, net sales for the Primary segment were $37,462 million, an increase of 0.5% compared to $37,289 million for the same period in 2024[42] - The company reported a net sales increase in building materials to $13,596 million for the three months ended November 2, 2025, compared to $13,531 million for the same period in 2024[45] - Net sales in the U.S. for the three months ended November 2, 2025, were $38.126 billion, up from $37.135 billion in the prior year, representing a 2.7% increase[46] - Comparable sales increased by 0.2% in Q3 2025, with a 1.8% rise in comparable average ticket, offset by a 1.6% decrease in comparable customer transactions[110][116] - Online sales accounted for 15.2% of net sales in Q3 2025, increasing by 11.4% compared to Q3 2024[114] - Online sales accounted for 15.4% of net sales during the first nine months of fiscal 2025, increasing by 10.8% compared to the same period in fiscal 2024[131] - Comparable sales increased by 0.3%, with a 1.1% rise in comparable average ticket, offset by a 0.8% decrease in comparable customer transactions[132]

Revenue and Growth - Subscription revenue accounted for 94% and 93% of total revenue for the six months ended October 31, 2025 and 2024, respectively [124]. - The number of customers with annual contract value over $100,000 increased to over 1,600 as of October 31, 2025, up from over 1,420 in 2024 [126]. - Elastic Cloud contributed 48% and 46% of total revenue for the six months ended October 31, 2025 and 2024, respectively [140]. - The Net Expansion Rate was approximately 112% as of October 31, 2025, indicating growth in customer spending [138]. - Total revenue for the three months ended October 31, 2025, was $423.5 million, representing a 16% increase from $365.4 million in the same period of 2024 [159]. - Subscription revenue increased by $56.9 million, or 17%, driven by a 22% growth in Elastic Cloud revenue and a 12% increase in Other subscriptions [159]. - Subscription revenue increased by $121.7 million, or 18%, for the six months ended October 31, 2025, driven by a 23% growth in Elastic Cloud revenue [173]. - Total revenue for the six months ended October 31, 2025, was $838.8 million, an increase of $126.0 million, or 18%, compared to the same period of the prior year [173]. Expenses and Profitability - Gross profit for the three months ended October 31, 2025, was $321.5 million, with a gross margin of 76%, compared to 74% in the same period of 2024 [155][157]. - Research and development expenses for the three months ended October 31, 2025, were $108.2 million, up from $88.2 million in 2024, reflecting ongoing investment in new technology [148][155]. - Sales and marketing expenses increased to $173.6 million for the three months ended October 31, 2025, compared to $144.3 million in 2024, as the company expanded its sales force [149][155]. - General and administrative expenses rose to $48.0 million for the three months ended October 31, 2025, from $44.1 million in 2024, supporting business growth [150][155]. - The net loss for the three months ended October 31, 2025, was $51.3 million, compared to a net loss of $25.5 million in the same period of 2024 [155]. - Research and development expenses rose by $39.8 million, or 22%, for the six months ended October 31, 2025, primarily due to a $28.1 million increase in personnel and related costs [178]. - Sales and marketing expenses increased by $46.0 million, or 15%, for the six months ended October 31, 2025, mainly due to a $34.4 million rise in personnel and related costs [179]. - Gross profit for the six months ended October 31, 2025, was $640.0 million, reflecting a 21% increase compared to the prior year [176]. - Subscription gross margin improved to 81% for the six months ended October 31, 2025, up from 79% in the same period of the prior year [176]. - Total cost of revenue for the six months ended October 31, 2025, was $198.8 million, an increase of $13.8 million, or 7%, compared to the prior year [176]. Tax and Other Income - The effective tax rate was influenced by various factors, including non-deductible stock-based compensation and one-time tax benefits, leading to a provision for income taxes of $52.6 million for the three months ended October 31, 2025 [153][155]. - Provision for income taxes increased by $28.9 million, or 122%, for the three months ended October 31, 2025, compared to the same period of the prior year [171]. - Other income, net increased by $6.7 million, or 74%, for the three months ended October 31, 2025, primarily due to a $4.0 million increase in interest and other investment income [169]. - Other income, net rose by $11.3 million, or 56%, to $31.6 million for the six months ended October 31, 2025, driven by an $8.0 million increase in interest and other investment income and a $3.3 million increase in net foreign currency exchange gains [184]. - Provision for income taxes increased by $33.4 million, or 76%, to $77.2 million for the six months ended October 31, 2025, compared to $43.7 million in the prior year [185]. Cash Flow and Financial Position - As of October 31, 2025, the company had cash, cash equivalents, and marketable securities totaling $1.396 billion [188]. - The company reported an accumulated deficit of $1.176 billion as of October 31, 2025, reflecting significant operating losses [189]. - Net cash provided by operating activities was $131.4 million for the six months ended October 31, 2025, compared to $91.1 million in the prior year [196]. - Net cash provided by investing activities was $38.4 million for the six months ended October 31, 2025, primarily from sales and maturities of marketable securities [199]. - Net cash used in financing activities was $96.7 million for the six months ended October 31, 2025, mainly due to repurchases of ordinary shares totaling $109.2 million [201]. - The company authorized a Share Repurchase Program for up to $500.0 million of its outstanding ordinary shares in October 2025 [194]. - Foreign currency transaction losses were $1.1 million for the six months ended October 31, 2025, compared to $2.0 million in the prior year [208]. - As of October 31, 2025, the company's cash, cash equivalents, restricted cash, and marketable securities were primarily denominated in U.S. dollars, Euros, and British Pound Sterling [209]. - A 10% increase or decrease in exchange rates would have impacted the company's cash and marketable securities balances by approximately $8.2 million [209]. Strategic Initiatives - The company plans to continue investing in developing new features for its platform to drive growth [133]. - The company aims to convert free users of its software into paid subscribers, which is critical for financial performance [135]. - The company continues to monitor macroeconomic conditions that may impact sales cycles and customer spending behavior [129]. - The company expects research and development expenses to continue increasing in absolute dollars as it invests further in existing products and new technology [148]. - The company anticipates that revenue from Elastic Cloud will continue to grow as a percentage of total revenue, which may have a modest unfavorable impact on gross margin due to third-party hosting costs [147].