Financial Performance - Royalty income for the three months ended October 31, 2025, was $3,390,609, a decrease of 53.8% compared to $7,348,366 in the same period of 2024[14] - Total revenues for the nine months ended October 31, 2025, were $13,931,747, down 84.8% from $91,742,322 in the same period of 2024[14] - Net income for the three months ended October 31, 2025, was $2,767,463, a decline of 96.4% compared to $78,325,525 in the same period of 2024[14] - Net income for the nine months ended October 31, 2025, was $11,142,554, down 87.3% from $87,207,203 in the prior year[75] - For the three months ended October 31, 2025, total royalty income decreased by $3,957,757 to $3,390,609 compared to the same period in 2024, primarily due to lower pricing and shipments of iron ore[67] - For the nine months ended October 31, 2025, total royalty income decreased by $6,456,708 to $13,156,985 compared to the same period in 2024, due to an extended maintenance shutdown and decreased pricing and shipments[69] Cash and Assets - Cash and cash equivalents decreased to $23,191,923 as of October 31, 2025, from $100,204,531 at the beginning of the period[16] - The unallocated cash and cash equivalents decreased from $100,204,531 on January 31, 2025, to $23,191,923 on October 31, 2025[43] - As of October 31, 2025, the net contract asset is $1,055,605, reflecting a significant increase from $240,642 recorded on January 31, 2025[37] - Total liabilities as of October 31, 2025, were $4,911,341, down from $78,400,735 as of January 31, 2025[16] - The Trust's unallocated reserve balance as of October 31, 2025, is $21,087,860, a decrease from $22,781,200 as of July 31, 2025[43] - Unallocated Reserve decreased by 77.9% to $21,087,860 as of October 31, 2025, compared to $95,324,736 as of October 31, 2024[79] - Accrued Income Receivable fell by 60.8% to $1,522,367 from $3,883,400 year-over-year[79] Distributions - Distributions declared per unit for the nine months ended October 31, 2025, were $1.0200, an increase from $0.9800 in the same period of 2024[14] - The Trust declared a distribution of $0.34 per Unit of Beneficial Interest, totaling $4,460,803, payable on November 20, 2025, compared to $0.39 per Unit for the same quarter in 2024[41] - The Trust declared a distribution of $0.34 per unit for the quarter ended October 31, 2025, down from $0.39 per unit in the same quarter of 2024[88] Royalty Income and Pricing - The Trust's royalty income for the nine months ended October 31, 2025, was $13,156,985, a decrease of 32.9% from $19,613,693 in the same period of 2024[14] - The Trust's royalty income is primarily derived from base overriding royalties, which are calculated as a percentage of gross proceeds from iron ore products shipped, ranging from 2.5% to 6% based on shipment volume[52] - The royalty bonus threshold price for 2025 is set at $69.41 per ton, up from $67.75 per ton in 2024[53] - The minimum advance royalty for calendar year 2025 is set at $1,157,261, an increase from $1,129,615 for 2024, adjusted for inflation[59] - Fee royalties increased by $54,092 to $224,670 for the three months ended October 31, 2025, attributed to a higher royalty rate[68] - The decrease in bonus royalties for the three months ended October 31, 2025 was due to lower prices of products shipped over the threshold price per ton[70] - Cliffs' acquisition of ArcelorMittal USA has led to a decrease in arms'-length sales, impacting the calculation of royalties owed to the Trust[62] - Variations in royalty payments to Mesabi Trust can occur due to interim and final pricing adjustments based on various price and inflation index factors[109] - The Trust's ability to project future sales prices remains uncertain, impacting potential royalty payments[126] - The Trust's bonus royalties could be reduced or eliminated in specific quarters or years due to market conditions[126] Operational Insights - Iron ore pellet production and shipments for the three months ended October 31, 2025 totaled 915,605 tons, down from 1,066,665 tons in the same period of 2024, attributed to lower customer demand[64] - Cliffs reported a total royalty payment of $4,005,142 to Mesabi Trust for the three months ended September 30, 2025[85] - Cliffs credited Mesabi Trust with 987,370 tons of iron ore shipped in Q3 2025, compared to 972,154 tons in Q3 2024, indicating a slight increase in shipments[86] - Cliffs has disclosed that marketing and selling iron ore pellets to third-party customers is no longer a core aspect of Northshore's business, affecting royalty calculations[108] Legal and Regulatory Matters - Mesabi Trust initiated arbitration against Northshore and Cliffs on September 26, 2025, seeking damages related to idling operations and underpayment of royalties[83] - Mesabi Trust initiated arbitration against Northshore and Cliffs seeking damages related to the idling of Northshore's operations from May 2022 to April 2023 and underpayment of royalties on intercompany shipments from 2023 to present[124] - The Minnesota Supreme Court denied petitions for review from Cliffs and the DNR, leaving the Court of Appeals' reversal decision in place[96] - WaterLegacy filed a civil complaint seeking to enjoin DNR and Northshore from proceeding with the Milepost 7 tailings basin project until an Environmental Impact Statement (EIS) is completed[98] - The court denied WaterLegacy's motion for a temporary injunction against DNR and Northshore on September 4, 2025, allowing the case to proceed with a trial set for September 2027[100] Governance and Compliance - The Trust's financial statements are prepared on an accrual basis, with distributions declared based on actual royalty payments received rather than recorded income[40] - The Trust is not taxable as a corporation and all net taxable income is attributed directly to Unitholders for tax purposes[115] - The Trustees concluded that the disclosure controls and procedures of Mesabi Trust are effective as of the end of the reporting period[120] - There were no changes in the Trust's internal control over financial reporting that materially affected its operations during the last fiscal quarter[121] - The Trust's financial reporting includes safety data as required by the Dodd-Frank Act[130] - No unregistered sales of equity securities or defaults upon senior securities were reported[127][128]

Drug Development and Clinical Trials - The company is developing EB06, an anti-CXCL10 monoclonal antibody for vitiligo, with a Phase 2 study expected to enroll by mid-2026, pending regulatory approval[22]. - EB05, a new class of Host-Directed Therapeutics, showed statistically significant improvement in survival and recovery in a Phase 3 study for ARDS, which accounts for approximately 10% of ICU admissions globally[23][37]. - The Phase 2 study indicated a 28-day mortality rate of 7.7% for the EB05 plus SOC group versus 40% for the placebo plus SOC group in critically ill patients, with a p-value of 0.04[45]. - The U.S. government has selected EB05 for a Phase 2 platform study funded by BARDA, focusing on ARDS treatments[46]. - The Canadian government committed up to C$23 million in funding for a Phase 3 clinical study of EB05, with C$5.75 million being non-repayable[48]. - The company is evaluating additional product candidates targeting inflammatory and immune-related diseases, including potential treatments for pulmonary fibrosis[51]. - The company must complete extensive clinical trials to demonstrate the safety and efficacy of its product candidates, which are expensive and uncertain[159]. - Unacceptable adverse events in clinical trials could delay or prevent regulatory approval and commercialization of the company's product candidates[161]. - Prolonged or delayed clinical trials may incur additional costs and hinder the timely commercialization of product candidates[162]. - The company faces potential delays in clinical trials, which could increase development costs and affect commercial prospects for its product candidates[164]. - There is uncertainty regarding the clinical trial designs and endpoints required for obtaining marketing approval, which may lead to additional trials and financial impacts[165]. Market Opportunity and Financials - The estimated prevalence of vitiligo is between 0.5% to 2% of the global population, indicating a significant market opportunity[26]. - The total addressable patient population for EB01, a therapy for Allergic Contact Dermatitis, is estimated to be as high as 5 million in major markets and Canada[34]. - ARDS-related ICU admissions are estimated at 600,000 annually in the seven major markets and Canada, with average ICU costs exceeding $100,000 per patient[37]. - The company has received over C$37 million in competitive government grants and funding awards, validating its technology and drug development capabilities[24]. - The company expects research and development expenses to increase significantly, particularly for drug candidates beyond Phase 2 clinical development[127]. - Substantial additional funding will be needed to finance operations through regulatory approval of product candidates; failure to raise capital could delay or eliminate development programs[121]. - The company anticipates that its cash and cash equivalents may not be sufficient to fund operations for one year after the filing date unless additional capital is raised or spending is delayed[125]. - The company has entered into the 2023 SIF Agreement with the Government of Canada, which includes up to C$23 million in partially repayable funding for the development of investigational therapy EB05, with a project completion deadline of December 31, 2028[134]. - The company relies on government grants, including C$14.1 million from the 2021 SIF Agreement, to support its EB05 development program[133]. Regulatory Environment - The company plans to pursue expedited regulatory review and orphan drug programs to accelerate clinical development timelines for its product candidates[27]. - The FDA requires extensive preclinical testing and multiple phases of human clinical trials before a product candidate can be marketed in the U.S.[72][74]. - The company must submit an NDA or BLA to the FDA after completing clinical trials, which includes comprehensive data on product development and testing[74]. - The Prescription Drug User Fee Act mandates user fees for each NDA or BLA submission, which are adjusted annually by the FDA[75]. - The FDA reviews NDA or BLA submissions within 60 days to determine if they are substantially complete, with performance goals to review 90% of original standard NDAs or BLAs within 10 months and 90% of original priority NDAs or BLAs within 6 months[1]. - The FDA may require a Risk Evaluation and Mitigation Strategy (REMS) if the benefits of a biologic do not outweigh potential risks, which must be submitted before BLA approval[2]. - The FDA typically inspects manufacturing facilities and clinical sites before approving an NDA or BLA to ensure compliance with GMP and GCP requirements[3]. - If the FDA issues a complete response letter, it may outline specific deficiencies that could be minor or major, affecting the approval process[4]. - Orphan drug designation can provide exclusivity for seven years if the product receives the first FDA approval for a specific active ingredient for a rare disease[5]. - The FDA has programs like Fast Track and Breakthrough Therapy designations to expedite the development and review of drugs addressing serious conditions[6]. - Priority Review designation allows for a six-month review period for drugs that significantly improve safety or effectiveness compared to existing treatments[7]. - Accelerated Approval may require post-approval studies to verify clinical benefits, and the FDA can withdraw approval if confirmatory trials fail[8]. - The Biologics Price Competition and Innovation Act provides a 12-year exclusivity period for reference products, impacting the approval of biosimilars[9]. - Sponsors of clinical trials must register and disclose information on clinicaltrials.gov, with results required to be disclosed after trial completion[10]. Competition and Market Risks - The pharmaceutical industry is highly competitive, with potential competitors including large pharmaceutical companies and smaller biotech firms, many of which have greater resources[68]. - The company faces substantial competition, which may result in others commercializing products for target indications before it does[121]. - The competitive landscape is significant, with major pharmaceutical and biotechnology companies potentially developing more effective treatments[172]. - Regulatory pricing and reimbursement practices may adversely affect the company's ability to generate revenue from approved products[173]. - The company faces significant competition in securing partnerships for Phase 3 clinical testing, which is crucial for funding and advancing its product candidates[184]. Intellectual Property and Licensing - The company has an exclusive license agreement with NovImmune SA, which includes potential milestone payments up to $356 million[57]. - The company has exclusive rights to develop and commercialize a pharmaceutical product for topical dermal and anorectal applications under the Yissum License Agreement, with a total commitment of up to $18.4 million in milestone payments[62]. - The Inventor License Agreement grants the company global rights for all fields of use for the pharmaceutical product, with future potential payments totaling up to $69.1 million based on commercial approval and sales milestones[64]. - The company is dependent on maintaining patent protection for its technologies, as failure to do so could allow competitors to commercialize similar products[196]. - The company may face legal proceedings regarding intellectual property rights, which could adversely affect its business and market position[199]. - Intellectual property litigation may lead to significant expenses and distract management, potentially increasing operating losses[200]. Management and Workforce - The leadership team has extensive experience in drug development and commercialization, enhancing the company's competitive position in the biopharmaceutical sector[24]. - The company employs 17 full-time employees, with 10 in research and development and 7 in management and administration[114]. - More than 50% of the workforce consists of women, and over 50% are individuals from underrepresented racial or ethnic groups[115]. - The company is highly dependent on key executives, and the loss of any of these individuals could materially impact its objectives[155]. - The company faces competition in attracting and retaining qualified personnel, which is critical for achieving its business objectives[156]. - The company anticipates growth in employee numbers and operational scope, particularly in drug development and regulatory affairs, which may lead to management challenges[154]. Financial Position and Shareholder Information - The company is a late-stage biopharmaceutical firm with no products approved for commercial sale and has incurred significant losses since inception, expecting to continue incurring losses[121]. - As of September 30, 2025, the company has incurred an accumulated deficit of $65.9 million and expects to continue incurring significant operating losses for the foreseeable future[122]. - The company does not currently intend to pay dividends, relying on share price appreciation for investor returns[206]. - As of December 12, 2025, the CEO owns 19.99% of outstanding shares, and executive officers and directors collectively own 23.6%[211]. - Velan Capital beneficially owns 9.99% of outstanding shares and has the right to designate a director nominee[212]. - The company has filed Amended Articles for Series A-1 and Series B-1 Convertible Preferred Shares, each with a stated value of $10,000[216][217]. - Series A-1 Preferred Shares accrue a 10% annual return and are convertible at a fixed price of $3.445[219]. - Series B-1 Preferred Shares are convertible at a fixed price of $1.92[220]. - The market price of common shares may decline due to substantial sales or the perception of potential sales[207]. - The company must comply with Nasdaq listing requirements to avoid delisting, which could reduce liquidity and market price[204][205]. - The concentration of voting power among executives could delay or prevent beneficial corporate actions for other shareholders[213].

Financial Performance - Net sales for the second quarter were $288 million, a slight decline from $291 million in the same period last year[4] - Operating income increased to $58 million, reflecting improvements in price/mix despite external economic pressures[5] - Basic earnings per share rose to $0.50, compared to $0.49 in the prior year[9] - For the trailing twelve months, net sales reached $1.2 billion, with net income at $186.5 million[5] - EBITDA for the trailing twelve months increased by 63 basis points to $258 million[5] Cash Flow and Reserves - Cash reserves increased by $156 million to $269 million, indicating strong cash flow generation[5] Shareholder Value - The company repurchased 20,000 shares prior to the quarterly blackout period, demonstrating commitment to shareholder value[6] - National Beverage Corp. has delivered a compounded annual return to shareholders of over 13% over the past 40 years[6] Product Development - The company plans to launch a new product, Pineapple Coconut, under the LaCroix brand in early 2026[6] Market Challenges - The company continues to navigate challenges such as inflation and elevated commodity costs while maintaining strong fundamentals[4]

Financial Performance - For the fiscal year ended September 30, 2025, Edesa reported a net loss of $7.2 million, or $1.27 per common share, compared to a net loss of $6.2 million, or $1.93 per common share for the previous year[6]. - Total operating expenses increased by $0.9 million to $7.9 million for the year ended September 30, 2025, compared to $7.0 million for the prior year[5]. - Total other income decreased by $0.1 million to $0.7 million for the year ended September 30, 2025, primarily due to a decrease in interest income[5]. Research and Development - Research and development expenses rose by $0.8 million to $3.7 million for the year ended September 30, 2025, primarily due to increased manufacturing-related activities[8]. - A Phase 3 study of paridiprubart met primary and secondary endpoints with statistical significance, and Edesa is exploring development partnerships for this asset[3]. - The company initiated manufacturing activities for a Phase 2 study of EB06, with recruitment expected to begin by midyear 2026[3]. Financial Position - Edesa had cash and cash equivalents of $10.8 million and working capital of $10.4 million as of September 30, 2025[7]. - Edesa's balance sheet was strengthened, and the Canadian government funding agreement was extended to support manufacturing and development for the respiratory program[4]. Strategic Initiatives - The company plans to participate in one-on-one meetings during JP Morgan week starting January 12, 2026, to engage with potential partners[9]. - Edesa is focused on executing the Phase 2 vitiligo study, advancing respiratory assets toward commercialization, and expanding manufacturing capacity[4].

User Engagement and Active Users - Zedge reported 22.2 million monthly active users (MAU) as of October 31, 2025, a key performance indicator for the Zedge App[91] - As of October 31, 2025, Zedge had approximately 1.1 million active subscribers for its Zedge+ subscription service, which offers an ad-free experience[94] - Monthly Active Users (MAU) for the Zedge App decreased by 11.2% to 22.2 million for the three months ended October 31, 2025, compared to 25.0 million in the same period last year[107] - Emojipedia recorded 43.6 million monthly page views and approximately 7.2 million MAU as of October 31, 2025, with 42.1% of users in developed markets[101] Revenue and Financial Performance - Total revenue for the three months ended October 31, 2025, increased by 5.8% to $7,610,000 compared to $7,194,000 in the same period last year[120] - Subscription revenue increased by 28.6% to $1,520,000 for the three months ended October 31, 2025, compared to $1,182,000 in the same period last year[121] - Digital goods and services revenue declined by 27.3% to $468,000 for the three months ended October 31, 2025, primarily due to a 28.4% decrease in Monthly Active Payers (MAP) for GuruShots[127] - Average Revenue Per Monthly Active User (ARPMAU) for the Zedge App increased by 29.2% to $0.0991 for the three months ended October 31, 2025, driven by higher advertising prices and strong subscription revenue growth[108] Cost and Expenses - Direct cost of revenues increased by 20.4% to $555,000 for the three months ended October 31, 2025, compared to $461,000 in the same period last year, reflecting higher data center costs[130] - SG&A expenses decreased by 13.0% to $5.9 million for the three months ended October 31, 2025, compared to $6.8 million in the prior year, primarily due to lower personnel-related expenses and the expiration of an $8 million retention bonus program[132] - Stock-based compensation expense fell by 72.6% to $104,000 for the three months ended October 31, 2025, down from $379,000 in the same period last year, mainly due to the full amortization of $4 million related to the GuruShots acquisition[134] - Depreciation and amortization expenses decreased by 43.3% to $216,000 for the three months ended October 31, 2025, compared to $381,000 in the prior year, largely due to a $0.8 million impairment charge recognized in the second quarter of fiscal 2025[136] Strategic Initiatives - The company introduced pAInt, a generative AI wallpaper maker, in fiscal 2023, enhancing user engagement through text-to-image and image-to-image capabilities[92] - The company is developing DataSeeds.AI, which creates custom datasets for enterprise AI teams, leveraging its creator ecosystem[95] - Zedge's monetization strategy includes advertising revenue, in-app sales of Zedge Credits, and subscription offerings[94] - Zedge's strategy includes reducing paid user acquisition costs for GuruShots to improve return on ad spend[99] Market and Economic Conditions - The ongoing geopolitical tensions, particularly in Israel, pose risks to Zedge's operations and workforce stability[84] - The Creator Economy, which Zedge is part of, is estimated to be worth between $191 billion and $250 billion globally in 2025[88] Shareholder and Customer Concentration - The company repurchased 238,460 shares of Class B common stock for approximately $776,000 during the three months ended October 31, 2025, under its share repurchase program[158] - In the three months ended October 31, 2025, one large customer represented 34% of the company's revenue, compared to 30% in the same period of 2024[162] - As of October 31, 2025, two customers accounted for 42% and 14% of the accounts receivable balance, respectively[162] - At July 31, 2024, three customers represented 43%, 12%, and 11% of the accounts receivable balance, indicating a concentration of revenue sources[162] Income and Taxation - Income tax expense rose by 375.5% to $233,000 for the three months ended October 31, 2025, compared to $49,000 in the prior year, reflecting a higher effective tax rate of 22.8%[142] Segment Performance - Segment income from operations for the Zedge Marketplace increased by 66.4% to $1.6 million for the three months ended October 31, 2025, compared to $0.9 million in the prior year, attributed to higher revenue and lower SG&A[148] - Total segment income improved to $914,000 for the three months ended October 31, 2025, compared to a loss of $457,000 in the prior year, marking a 300.0% increase[147] Liquidity and Cash Position - Cash and cash equivalents stood at $18.5 million as of October 31, 2025, with working capital of $14.6 million, indicating stable liquidity compared to $18.6 million and $14.7 million at July 31, 2025[150]

Company Overview - AMREP Corporation reported its results for the three and six month periods ended October 31, 2025[5]. - The company is listed on the New York Stock Exchange under the symbol AXR[3]. - The report does not indicate any emerging growth company status for AMREP Corporation[4]. Financial Reporting - The press release detailing the financial results was issued on December 12, 2025[5]. - Financial statements and exhibits related to the report are included in the filing[7]. - The Chief Financial Officer, Adrienne M. Uleau, signed the report on behalf of AMREP Corporation[12]. - The press release is incorporated by reference in the current report[6]. - The report does not provide specific financial metrics or performance indicators in the available content[5]. - The filing does not include any forward-looking statements or performance guidance[5]. Product and Market Information - There is no mention of new products, technologies, or market expansion strategies in the current report[5].

Financial Performance - For the three months ended October 31, 2025, the Company reported net income of $1,200,000, or $0.22 per diluted share, a decrease from $4,042,000, or $0.75 per diluted share, for the same period in 2024, representing a decline of 70.3%[67] - Total revenues for the three months ended October 31, 2025, were $9,398,000, down 21% from $11,906,000 in the same period of 2024[69] - The cost of revenues for the three months ended October 31, 2025, was $6,323,000, a decrease of 8.8% from $6,937,000 in the same period of 2024[75] - General and administrative expenses for the six months ended October 31, 2025 totaled $3,804,000, reflecting a 10% increase from $3,456,000 in 2024[80] - Net cash provided by operating activities for the six months ended October 31, 2025 was $5,273,000, down from $10,509,000 in 2024[84] - The provision for income taxes for the six months ended October 31, 2025 was $2,288,000, compared to a provision of $887,000 for the same period in 2024[82] Revenue Breakdown - Land sale revenues decreased by 86% to $825,000 for the three months ended October 31, 2025, compared to $5,857,000 in the same period of 2024[69] - Home sale revenues increased by 45% to $7,725,000 for the three months ended October 31, 2025, compared to $5,334,000 in the same period of 2024[69] - For the three months ended October 31, 2025, home sale gross margins increased to 25% compared to 20% for the same period in 2024[79] - Land sale gross margins improved to 80% for the three months ended October 31, 2025, compared to 60% for the same period in 2024[76] Real Estate Activity - The Company had 59 homes in production as of October 31, 2025, with 16 homes under contract, representing $7,446,000 in expected revenues[73] - The Company sold 467 acres of undeveloped land in Sandoval County, New Mexico, generating $2,174,000 in revenue during the six months ended October 31, 2025[70] - The Company sold 501.8 acres of undeveloped property in Sandoval County, New Mexico during the six months ended October 31, 2025[86] - The Company leased 28 homes to residential tenants as of October 31, 2025, an increase from 21 homes as of April 30, 2025[87] Cash and Assets - The Company had cash, cash equivalents, and restricted cash of $45,111,000 as of October 31, 2025, a 13% increase from $39,921,000 as of April 30, 2025[84] - Real estate inventory increased by 3% to $68,584,000 as of October 31, 2025, up from $66,750,000 as of April 30, 2025[86] - Interest income, net for the six months ended October 31, 2025 was $915,000, compared to $857,000 for the same period in 2024[81] Market Conditions - The Company reduced the number and scope of its active land development projects due to market headwinds, which is expected to result in reduced revenues from land sales in 2026 compared to 2025[68] - Future economic conditions and demand for land and homes remain uncertain due to various macroeconomic factors, including inflation and mortgage interest rates[68] Debt Management - Notes payable decreased from $26,000 as of April 30, 2025 to $23,000 as of October 31, 2025 due to principal debt repayments[85]

Financial Performance - Kroger reported Q3 2025 sales of $33.859 billion, a 0.7% increase from $33.634 billion in Q3 2024, with sales excluding fuel at $30.689 billion, up 1.3% from $30.299 billion[90]. - Adjusted net earnings attributable to Kroger for Q3 2025 were $697 million, a decrease of 3.1% compared to $719 million in Q3 2024, with adjusted net earnings per diluted share at $1.05, up 7.1% from $0.98[90]. - Kroger's operating profit for Q3 2025 was reported at a loss of $1.541 billion, a decline of 286.1% compared to a profit of $828 million in Q3 2024[90]. - Net earnings attributable to The Kroger Co. for Q3 2025 were $(1,320) million, a decrease from $618 million in Q3 2024[106]. - Adjusted net earnings attributable to The Kroger Co. for Q3 2025 were $697 million, down 3.1% from $719 million in Q3 2024[106]. - Operating profit for Q3 2025 was $(1.5) billion, while it was $644 million for the first three quarters of 2025, impacted by the $2.6 billion impairment[97]. - Total sales for the first three quarters of 2025 increased by 0.1% to $112,917 million compared to $112,815 million in the same period of 2024[113]. - Gross profit for the third quarter of 2025 was $7,735 million, up from $7,534 million in the same quarter of 2024[124]. eCommerce Growth - Kroger anticipates eCommerce sales to grow at a double-digit rate, outpacing other food at home sales, driven by investments in major store projects and enhanced eCommerce capabilities[87]. - eCommerce sales rose by 17% in Q3 2025 and 16% in the first three quarters of 2025 compared to the same periods in 2024, with growth led by strong demand for Delivery solutions[97]. - eCommerce sales grew by 17% in Q3 2025 compared to Q3 2024, driven by a 19% increase in Delivery solutions[110]. - A strategic review of eCommerce operations led to the closure of underperforming fulfillment facilities, resulting in a $2.6 billion impairment charge, with expectations of improved eCommerce profitability moving forward[102]. Shareholder Returns - The company expects to achieve total shareholder return within a target range of 8% to 11% over time[86]. - Share repurchases in Q3 2025 amounted to $1.404 billion, significantly higher than $9 million in Q3 2024[90]. - The company returned $2.3 billion to shareholders through share repurchases and dividends in the first three quarters of 2025[97]. - The company repurchased 14.0 million shares for $947 million at an average price of $67.47 per share in the first three quarters of 2025[161]. Debt and Liquidity - The company plans to maintain a net total debt to adjusted EBITDA ratio target range of 2.30 to 2.50 while continuing to grow dividends and return excess cash to shareholders[85]. - Total debt increased by $105 million to $18.0 billion as of November 8, 2025, due to a net increase in obligations under finance leases[158]. - As of November 8, 2025, the company held $4.0 billion in cash and temporary cash investments, providing operational flexibility[164]. - As of November 8, 2025, the company expects to meet its short-term and long-term liquidity needs through cash and temporary cash investments on hand, cash flows from operating activities, and other liquidity sources[165]. - The company operates with a working capital deficit due to efficient cash use in funding operations and consistent access to capital markets[165]. - Anticipated liquidity needs include working capital for operations, pension plan commitments, interest payments, scheduled principal payments of debt, and capital investments[165]. Operating Expenses and Margins - The FIFO gross margin, excluding rent, depreciation, and amortization, increased by 0.49 basis points in Q3 2025 compared to 0.51 basis points in Q3 2024[90]. - Gross margin rates improved to 22.8% in the first three quarters of 2025 from 22.1% in 2024, primarily due to the sale of the Kroger Specialty Pharmacy business and lower supply chain costs[122]. - OG&A expenses as a percentage of sales rose to 19.8% in the first three quarters of 2025 from 17.2% in 2024, driven by increased healthcare costs and the sale of the Kroger Specialty Pharmacy business[130]. - The LIFO charge was $44 million in Q3 2025, up from $4 million in Q3 2024, and $146 million for the first three quarters of 2025, compared to $66 million in the same period of 2024, due to higher expected product cost inflation[97]. Impairments and Charges - The company recorded a significant impairment charge of $2.6 billion related to fulfillment network in the third quarter of 2025[137]. - The company recognized store closure costs of $100 million related to the planned closing of approximately 60 stores, with a commitment to reinvest savings into customer experience[96]. Cash Flow - Cash flows from operations totaled $4.7 billion for the first three quarters of 2025, a 6% increase from the same period in 2024[97]. - Cash provided by operating activities was $4.658 billion for the first three quarters of 2025, compared to $4.390 billion in the same period of 2024[150]. - Cash used in investing activities increased to $(3.015) billion in the first three quarters of 2025 from $(2.402) billion in 2024, primarily due to decreased asset sale proceeds[152].

Backlog and Revenue - Semiconductor Systems segment backlog as of October 26, 2025, was $7,105 million, representing 47% of total backlog[29] - Applied Global Services segment backlog was $7,141 million, accounting for 48% of total backlog[29] - Total backlog as of October 26, 2025, was $15,002 million, with approximately 31% not expected to be filled within the next 12 months[29] - Net revenue for fiscal 2025 was $28,368 million, an increase of $1,192 million (4%) compared to $27,176 million in fiscal 2024[149] - AGS net revenue for fiscal 2025 increased to $28.368 billion, a 4% increase from $27.176 billion in fiscal 2024[153] - Semiconductor Systems segment generated $20,798 million in revenue, representing a 4% increase from $19,911 million in fiscal 2024[149] - Applied Global Services segment revenue was $6,385 million, a 3% increase from $6,225 million in fiscal 2024[149] - Corporate and Other segment revenue increased by 14% to $1,185 million from $1,040 million in fiscal 2024[149] Financial Performance - Gross margin improved to 48.7% in fiscal 2025, up from 47.5% in fiscal 2024, reflecting favorable changes in customer and product mix[149] - Operating income for fiscal 2025 was $8,289 million, an increase of $422 million (5.4%) from $7,867 million in fiscal 2024[149] - Net income for fiscal 2025 was $6,998 million, a decrease of $179 million (2.5%) compared to $7,177 million in fiscal 2024[149] - Earnings per diluted share increased to $8.66 in fiscal 2025, up by $0.05 from $8.61 in fiscal 2024[149] Employee and Talent Management - The company employs approximately 36,500 full-time employees across 25 countries, with 46% in the Asia-Pacific region[50] - The company emphasizes the importance of attracting, developing, and retaining employees through competitive rewards and benefits, including an Employee Stock Incentive Plan and healthcare benefits[52] - Employee learning and development is structured around the 70/20/10 model, focusing on 70% on-the-job learning, 20% social/collaborative, and 10% formal training, with advanced training modalities like AI-based simulations[53] - In fiscal 2025, the company conducted an all-employee survey to measure engagement, benchmarking results against large technology companies globally to enhance employee satisfaction and collaboration[54] - The ability to attract, retain, and motivate key employees is vital for the company's success, with challenges arising from global competition for talent[99] Research and Development - Significant investments in research, development, and engineering are aimed at delivering new products and technologies ahead of demand[33] - The company is committed to ongoing investment in research and development to remain competitive, even during periods of economic uncertainty[63] - Research, development and engineering (RD&E) expenses increased to $3.570 billion, up from $3.233 billion in fiscal 2024, reflecting higher headcount and depreciation[154] - The company is committed to improving productivity in research and development activities to enhance capital efficiency[87] Market and Industry Risks - The company anticipates increased competition from domestic equipment manufacturers in China due to local government incentives[37] - The company faces risks from the cyclical nature of the semiconductor industry, which is influenced by customer demand, technology advancements, and economic conditions[60] - Global trade issues and changes in trade policies, including tariffs and export regulations, have adversely impacted the company's operations and competitiveness[67] - The U.S. government has imposed additional export regulations affecting semiconductor technology sales to China, which could limit market access and impact revenues[68] - Economic uncertainties, including inflation and interest rate changes, could lead to customer delays in purchasing equipment, negatively impacting demand and revenue[62] - Supply chain disruptions and manufacturing interruptions could lead to higher costs and excess or obsolete inventory, adversely affecting the company's ability to meet customer demand[74] - The company faces risks from geopolitical factors, including trade regulations and export controls, particularly concerning semiconductor components and rare earth minerals[79] - The semiconductor industry is characterized by rapid technological changes, requiring the company to effectively anticipate and adapt to these changes to maintain competitiveness[82] Legal and Compliance Risks - The company has received multiple subpoenas from U.S. government authorities regarding transactions with certain foreign entities, particularly related to China shipments and export controls compliance[69] - The company may incur significant legal costs and penalties due to potential violations of laws or regulations, which could adversely affect its financial condition[70] - The company is exposed to risks related to legal proceedings and investigations, which may be time-consuming and expensive[111] - The company is subject to examination by the U.S. Internal Revenue Service and other tax authorities, which may lead to litigation and affect its tax provisions[104] Financial Position and Capital Management - The company has $6.5 billion in aggregate principal amount of senior unsecured notes outstanding as of October 26, 2025[105] - The company has revolving credit facilities allowing borrowing up to approximately $4.1 billion, with no amounts outstanding as of October 26, 2025[106] - The company has credit facilities for unsecured borrowings totaling $4.1 billion, with no amounts outstanding as of October 26, 2025[179] - A short-term commercial paper program allows the issuance of up to $4.0 billion, with $100 million of commercial paper notes outstanding as of October 26, 2025[180] - The company recognized a reduction in current income taxes payable by $233 million and future income taxes payable by $548 million due to the investment tax credit from the CHIPS Act[185] - The gross liability for unrecognized tax benefits was $452 million as of October 26, 2025, with interest and penalties related to uncertain tax positions totaling $118 million[197] Corporate Governance and Internal Controls - Management concluded that internal control over financial reporting was effective as of October 26, 2025[214] - KPMG LLP audited the consolidated financial statements and reported on the effectiveness of internal control over financial reporting as of October 26, 2025[215] - No changes in internal control over financial reporting during Q4 of fiscal 2025 that materially affected its effectiveness[216] - The design of any control system is based on certain assumptions about the likelihood of future events, providing only reasonable assurance[217]

Financial Performance - The Company reported a consolidated net sales of 100% for the fiscal year 2025, with the highest sales in June at 31%[42] - The operating profit for the quarter ending December 2025 was 125%, indicating strong performance during that period[42] - The Company has experienced seasonal variations in sales, with the primary selling season occurring in the quarters ending March and June[42] - The Company reported seasonal variations in sales and profitability, with December quarter net sales at 18% of total year sales for 2025, down from 27% in 2023[42] - In the March quarter of 2025, the Company experienced a net sales increase to 28%, compared to 30% in 2023, while operating profit showed a loss of 30%[43] - The June quarter for 2025 saw net sales rise to 31%, with an operating loss of 45%, reflecting a decrease from 28% net sales and a 149% operating profit in 2023[43] - The September quarter in 2025 had net sales at 23%, with a 50% operating profit, contrasting with a 15% net sales and a (193%) operating loss in 2023[43] Employee Relations - The Company has approximately 1,300 regular, full-time employees, with 950 located in the United States and 350 outside[36] - The Company maintains a commitment to workplace safety and employee relations, considering them to be excellent[37] - The Company emphasizes the importance of attracting and retaining key employees to ensure successful execution of its mission[37] Research and Development - The Company invests significantly in research and development across its business segments, with activities conducted in multiple locations including Minnesota, Georgia, and Switzerland[27] - The Company expenses research and development costs as incurred, except for certain software development costs which are capitalized and amortized[28] - The Company invests significantly in research and development across its business segments, with activities conducted in multiple locations including Minnesota, Georgia, Canada, and Switzerland[27] Product Segments - The Fishing segment's key brands include Minn Kota, Humminbird, and Cannon, which are marketed primarily in North America through various retail channels[15] - The Diving segment competes in the premium recreational market with products sold through specialty dive stores and direct to consumers[23] - The Fishing segment includes key brands such as Minn Kota, Humminbird, and Cannon, with a focus on innovation and quality products[13] - The Camping & Watercraft segment features brands like Jetboil and Old Town, emphasizing brand awareness and product innovation through digital marketing[16] - The Diving segment markets SCUBAPRO products, competing in the premium recreational and high-performance technical diving markets[21] Supply Chain Management - The Company mitigates supply chain risks by purchasing safety stock and utilizing forecast-based supply contracts[41] - The Company mitigates supply chain risks by maintaining safety stock and utilizing forecast-based supply contracts[41] Compliance and Ethics - The Company believes it complies with various environmental laws and regulations, and expenditures on environmental compliance are not expected to have a material adverse effect on capital expenditures, earnings, or competitive position[44] - The Company is committed to ethical business practices and files an annual Form SD regarding "Conflict Minerals Disclosure" as required by the Dodd-Frank Act[45] - The Company is committed to ethical business practices and has established a "Code of Conduct" to guide its operations[45] Intellectual Property - The Company holds numerous patents and trademarks, which it actively defends to protect its intellectual property rights[39] Transparency - The Company provides free access to its financial reports and governance documents on its website, ensuring transparency for shareholders[46] Competition - The Company’s primary competitors in the Fishing segment include Lowrance, Garmin, and Power-Pole, focusing on technological innovation and product quality[30] - The Company does not believe that backlog information is material to understanding its business due to the non-binding nature of orders[35]