Revenue Performance - Revenue for fiscal year 2025 was $2.3 billion, a decrease from $2.7 billion in fiscal year 2024, with fourth quarter revenue at $1.0 billion compared to $1.2 billion in the same period last year[5] - Total revenue for the fiscal year ended September 30, 2025, was $2,262,830,000, a decrease of 16.2% from $2,698,562,000 in 2024[29] - For the three months ended September 30, 2025, total revenue was $1,041,891,000, a decrease of 15.2% from $1,228,148,000 in the same period of 2024[32] - Total revenue for the three months ended September 30, 2025, was $1,041,891, a decrease from $1,228,148 in the same period of 2024[53] Profitability - The company reported a net loss of $68.0 million for fiscal year 2025, contrasting with a net income of approximately $30.4 million in fiscal year 2024[5] - Gross profit for the fiscal year 2025 was $295,785,000, down from $341,080,000 in 2024, reflecting a gross margin of approximately 13.1%[29] - The company reported a comprehensive loss of $49,213,000 for the fiscal year 2025, compared to a comprehensive income of $23,282,000 in 2024[35] - The gross profit for the three months ended September 30, 2025, was $142,903, compared to $157,469 in the same period of 2024[53] - Adjusted Gross Profit for the three months ended September 30, 2025, was $148,508, representing an adjusted gross profit margin of 14.3%, compared to 13.0% in 2024[53] Cash Flow and Liquidity - Total cash and liquidity reached approximately $1.3 billion as of September 30, 2025, the highest level in the company's history[5] - Cash and cash equivalents increased to $690,768,000 as of September 30, 2025, up from $448,685,000 in 2024[26] - The company reported a total cash and cash equivalents balance of $714.630 million at the end of the period, up from $518.706 million at the beginning[37] - The total cash used in operating activities was $145.538 million in 2025, a decrease from cash provided of $79.685 million in 2024[37] - Net cash used in operating activities for the fiscal year ended September 30, 2025, was $(145,538), a significant decline from $79,685 in 2024[55] - Free Cash Flow for the fiscal year ended September 30, 2025, was $(160,422), compared to $71,570 in 2024[55] Backlog and Future Projections - The backlog increased to approximately $5.3 billion as of September 30, 2025, compared to $4.5 billion a year earlier, marking the highest level in the company's history[5] - The company expects revenue for fiscal year 2026 to be between $3.2 billion and $3.6 billion, with a midpoint of $3.4 billion, of which approximately 85% is covered by the current backlog[6] - Adjusted EBITDA for fiscal year 2026 is projected to be approximately $40.0 million to $60.0 million, with a midpoint of $50.0 million[6] - The company aims for an ARR of approximately $180.0 million by the end of fiscal year 2026[7] - New orders totaled $1.4 billion in the fourth quarter of 2025, representing the largest quarterly order intake in the company's history[5] Expenses and Costs - Research and development expenses for the fiscal year 2025 were $86,217,000, an increase of 30.3% from $66,195,000 in 2024[29] - Depreciation and amortization increased to $29.343 million in 2025 from $14.482 million in 2024, reflecting a 103.5% increase[37] - Interest paid increased to $9.296 million in 2025 from $3.022 million in 2024, indicating a rise in financing costs[38] - The company incurred $11.8 million in severance costs related to restructuring for the fiscal year ended September 30, 2025[52] - The company faced $1.5 million in expenses related to the Tax Receivable Agreement for the fiscal year ended September 30, 2024[52] Energy Storage Products - Energy storage products deployed increased to 6.8 GW in 2025, up 36.0% from 5.0 GW in 2024[41] - The contracted backlog for energy storage products grew to 9.1 GW in 2025, representing a 21.3% increase from 7.5 GW in 2024[41] - The pipeline for energy storage products expanded to 35.7 GW in 2025, a 38.4% increase from 25.8 GW in 2024[41] Shareholder Information - The weighted average number of Class A common shares outstanding for the fiscal year 2025 was 130,307,162, compared to 126,180,011 in 2024[29]

Financial Performance - Revenue for Q4 FY2025 was $1.86 billion, exceeding guidance and representing a growth of 9.4% reported and 7.2% on a core basis compared to Q4 FY2024 [4]. - GAAP net income for Q4 FY2025 was $434 million, with EPS of $1.53, up 25% from Q4 FY2024 [5]. - Non-GAAP net income for Q4 FY2025 was $452 million, with EPS of $1.59, up 9% from Q4 FY2024 [5]. - Total revenue for FY2025 was $6.95 billion, exceeding guidance and representing a growth of 6.7% reported and 4.9% on a core basis compared to FY2024 [4]. - GAAP net income for FY2025 was $1.303 billion, with EPS of $4.57, up 3% from FY2024 [4]. - Non-GAAP net income for FY2025 was $1.592 billion, with EPS of $5.59, up 6% from FY2024 [4]. - FY2026 revenue is expected to be in the range of $7.3 billion to $7.4 billion, representing growth of 5% to 7% reported and 4% to 6% core [4]. - Q1 FY2026 revenue guidance is expected to be in the range of $1.79 billion to $1.82 billion, an increase of 6% to 8% reported and 4% to 6% core [8]. Segment Performance - Life Sciences and Diagnostics Markets Group reported Q4 revenue of $755 million, an increase of 15% reported and 11% core year-over-year [7]. - Agilent CrossLab Group reported Q4 revenue of $755 million, an increase of 7% reported and 6% core year-over-year [7]. - Revenue for the Life Sciences and Diagnostics segment in Q4 2025 was $755 million, a 15% increase from $657 million in Q4 2024 [37]. - Revenue for the Agilent CrossLab segment in Q4 2025 was $755 million, up from $706 million in Q4 2024, representing a growth of 6.9% [38]. - Applied Markets Segment revenue for Q4'25 was $351 million, a 4% increase from $338 million in Q4'24 [39]. - Life Sciences and Diagnostics Markets Segment revenue for FY25 reached $2,726 million, up 11% from $2,466 million in FY24 [47]. - Agilent CrossLab Segment revenue for FY25 was $2,908 million, reflecting a 6% increase from $2,747 million in FY24 [47]. - Non-GAAP revenue for Agilent in Q4'25 was $1,839 million, an 8% increase year-over-year [45]. - Non-GAAP revenue for the Applied Markets Segment in FY25 was $1,314 million, reflecting a 1% increase from FY24 [47]. Margins and Assets - Operating margin for the Life Sciences and Diagnostics segment improved to 22.7% in Q4 2025 from 21.5% in Q4 2024 [37]. - Operating margin for the Agilent CrossLab segment decreased to 32.5% in Q4 2025 from 33.8% in Q4 2024 [38]. - Gross margin for the Life Sciences and Diagnostics Markets Segment decreased to 52.3% in FY25 from 54.5% in FY24 [40]. - Operating margin for the Applied Markets Segment in FY25 was 22.9%, down from 24.0% in FY24 [42]. - The Agilent CrossLab Segment's operating margin decreased to 32.5% in FY25 from 33.7% in FY24 [41]. Balance Sheet Highlights - Total assets increased to $12,727 million in 2025 from $11,846 million in 2024, representing a growth of 7.4% [20]. - Cash and cash equivalents rose to $1,789 million in 2025, up from $1,329 million in 2024, marking a 34.6% increase [20]. - Total current liabilities increased to $2,347 million in 2025 from $1,895 million in 2024, a rise of 23.9% [20]. - Total stockholders' equity grew to $6,741 million in 2025, compared to $5,898 million in 2024, reflecting an increase of 14.3% [20]. - Net income for the fiscal year ended October 31, 2025, was $1,303 million, compared to $1,289 million in 2024, reflecting a growth of 1.1% [24]. - Non-GAAP net income for 2025 was $1,592 million, up from $1,539 million in 2024, indicating a 3.4% increase [24]. Year-over-Year Growth - Year-over-year revenue growth for the Life Sciences and Diagnostics Markets Segment was 12% at constant currency in Q4'25 [45]. - Agilent's total revenue for FY25 was $6,948 million, representing a 7% increase from $6,510 million in FY24 [47].

Financial Performance - For the fiscal year ended September 30, 2025, Alico, Inc. reported a net loss of $147.3 million, a significant decline from a net income of $7.0 million in the previous year, primarily due to accelerated depreciation and impairments [6][7]. - Adjusted EBITDA for the fiscal year was $22.5 million, exceeding the guidance of $20 million, while total revenue decreased by 5.5% to $44.1 million [1][4]. - Total operating revenues decreased to $44,066 thousand in 2025 from $46,643 thousand in 2024, a decline of approximately 6% [37]. - Alico Citrus operating revenues fell to $41,337 thousand in 2025, down from $45,059 thousand in 2024, representing a decrease of about 8% [37]. - Total operating expenses increased significantly to $236,260 thousand in 2025 from $103,026 thousand in 2024, marking an increase of approximately 129% [37]. - Net loss attributable to Alico, Inc. common stockholders was $147,334 thousand in 2025, compared to a net income of $6,973 thousand in 2024 [37]. - Adjusted EBITDA for the year ended September 30, 2025, was $22,541 thousand, while it was $29,733 thousand in 2024, indicating a decrease of about 24% [43]. Cash Flow and Debt Management - The company achieved land sales of $23.8 million, surpassing the $20 million guidance, contributing to strong cash generation with cash and cash equivalents of $38.1 million [1][2]. - Net cash provided by operating activities was $20,126 thousand in 2025, a recovery from a cash used of $30,497 thousand in 2024 [39]. - Alico's net debt was reduced to $47.4 million, outperforming balance sheet targets, and the company ended the fiscal year with sufficient cash to cover expected operating expenses through fiscal year 2027 [2][4]. - Net debt decreased to $47,419 thousand in 2025 from $88,967 thousand in 2024, a reduction of approximately 47% [44]. - Cash and cash equivalents at the end of the period increased to $38,890 thousand in 2025 from $3,398 thousand in 2024 [39]. Asset and Liability Management - Alico's total assets decreased from $398.7 million in 2024 to $201.5 million in 2025, reflecting a significant reduction in property and equipment [35]. - Current assets increased from $40.6 million in 2024 to $54.9 million in 2025, primarily due to a rise in cash and cash equivalents from $3.2 million to $38.1 million [35]. - Total liabilities decreased from $142.4 million in 2024 to $93.5 million in 2025, indicating improved financial health [35]. - Stockholders' equity fell from $256.3 million in 2024 to $108.0 million in 2025, largely due to a decline in retained earnings from $249.3 million to $100.4 million [35]. Operational Challenges - Citrus production decreased by 25.9% year-over-year, with a total of 2.3 million boxes harvested, attributed to Hurricane Milton's impact [10][11]. - Other income decreased significantly from $78.4 million to $18.0 million, primarily due to lower gains from land sales compared to the previous fiscal year [15]. - General and administrative expenses increased by $0.6 million due to strategic transformation costs, despite a reduction in workforce-related expenses [14]. - Interest expense rose to $4,848 thousand in 2025 from $3,538 thousand in 2024, an increase of approximately 36% [37]. Strategic Initiatives - Alico's strategic transformation in 2025 focuses on diversified land usage and real estate development, aiming to create long-term shareholder value [28]. - The company is advancing its Corkscrew Grove Villages project, with a final decision on regulatory approvals expected in 2026, which is anticipated to enhance public infrastructure and provide economic benefits [5][17]. - Alico plans to develop Corkscrew Grove Villages, which will include approximately 375 income-restricted units per village and a total of 560,000 square feet of commercial space [19]. - The first village's approval process is expected to take about one year, with a final decision anticipated in 2026, and construction could begin in 2028 or 2029 if all approvals are granted [20]. - Alico has committed approximately $5 million towards the design and construction of a wildlife underpass as part of the State Road 82 expansion, with completion expected in 2027 [22]. - The Corkscrew Grove Stewardship District was established to assist in financing infrastructure and managing natural areas, promoting sustainable growth [21]. Liquidity Position - Working capital was reported at $49.2 million, with a current ratio of 9.56 to 1.00, indicating strong liquidity [18].

Financial Performance - Keysight reported fourth quarter revenue of $1.42 billion, a 10.2% increase from $1.29 billion in the same quarter last year[5] - GAAP net income for the fourth quarter was $229 million, or $1.33 per share, compared to a net loss of $73 million, or $0.42 per share, in Q4 2024[5] - Non-GAAP net income for the fourth quarter was $331 million, or $1.91 per share, up from $288 million, or $1.65 per share, in Q4 2024[5] - For fiscal year 2025, total revenue reached $5.37 billion, a 7.8% increase from $4.98 billion in fiscal year 2024[5] - Net income for the year ended October 31, 2025, was $846 million, a 38% increase from $614 million in 2024[20] - Total revenue for the fiscal year 2025 was $5,375 million, an 8% increase compared to $4,979 million in 2024[32] - Non-GAAP net income for the year ended October 31, 2025, was $1,240 million, up from $1,096 million in 2024, reflecting a 13% increase[23] - The company reported a diluted EPS of $4.89 for the year ended October 31, 2025, compared to $3.51 in 2024, representing a 39% increase[23] Cash Flow and Liquidity - Cash flow from operations for the fourth quarter was $225 million, down from $359 million in the previous year[5] - As of October 31, 2025, cash and cash equivalents totaled $1.87 billion, an increase from $1.80 billion a year earlier[18] - Operating cash flow increased to $1,409 million in 2025, up from $1,052 million in 2024, representing a 34% growth[20] - Free cash flow for the year ended October 31, 2025, was $1,282 million, compared to $905 million in 2024, marking a 42% increase[29] - Cash, cash equivalents, and restricted cash at the end of the year were $1,890 million, up from $1,814 million at the beginning of the year[20] Segment Performance - The Communications Solutions Group (CSG) reported revenue of $990 million in Q4, an 11% increase year-over-year[4] - The Electronic Industrial Solutions Group (EISG) reported revenue of $429 million in Q4, a 9% increase year-over-year[4] - The Communications Solutions Group reported revenue of $990 million in Q4 2025, an 11% increase from $894 million in Q4 2024[26] - The Electronic Industrial Solutions Group achieved revenue of $429 million in Q4 2025, a 9% increase from $393 million in Q4 2024[27] Shareholder Returns - The company announced a new $1.5 billion share repurchase program, effective immediately[6] Tax and Non-GAAP Measures - The company utilized a non-GAAP effective tax rate of 14% for both the three months and year ended October 31, 2025[23] - The company excludes acquisition-related items from non-GAAP financial measures to provide a clearer evaluation of current operating performance[38] - Share-based compensation expense is excluded from non-GAAP financial measures due to its variability based on share price and equity awards granted[38] - Incremental expenses related to restructuring initiatives are excluded as they are not considered normal, recurring operating expenses[38] Future Guidance - Keysight's first fiscal quarter 2026 revenue is expected to be between $1.53 billion and $1.55 billion[7]

Business Operations and Strategy - The company has a backlog of approximately $22.5 billion as of September 27, 2025, primarily from agreements with Walmart and GreenBox[20] - The company acquired the Advanced Systems and Robotics (ASR) business from Walmart in January 2025, adding a new product category for automated fulfillment at local and store levels[23] - The company plans to develop and install automated systems for online pickup and delivery at Walmart retail stores, with prototypes of the next-generation micro-fulfillment solution expected in calendar year 2026[39] - The company’s next-generation storage technology, announced in August 2025, can reduce storage footprint by up to 40%[37] - The company’s systems are operational in several of the world’s largest retailers, including Walmart and C&S Wholesale Grocers[20] - The company estimates its initial addressable market for its case-based system to be $144 billion over the next 15 to 25 years, based on the number of warehouses and expected average pricing[65] - The company’s BreakPack system allows for efficient handling of goods, reducing in-store storage needs and improving supply chain efficiency[62] - The company’s systems are designed to create benefits throughout the supply chain, optimizing both upstream and downstream operations[66] - The company is expanding into the warehouse-as-a-service (WaaS) market through the GreenBox joint venture, addressing the growing demand for flexible warehousing solutions[71] - The company aims to enhance operational efficiency through continuous innovation in its A.I.-powered robots and proprietary software[96] Financial Performance and Market Position - As of September 27, 2025, the company has an accumulated deficit of $1.3 billion and has incurred recurring net losses of $91.0 million and $84.7 million for the years ended September 27, 2025, and September 28, 2024, respectively[122] - Walmart accounted for approximately 85% of total revenue in the fiscal year ended September 27, 2025, and a significant majority of the $22.5 billion backlog[126] - The 2022 Walmart Master Automation Agreement added approximately $6.1 billion to the backlog, covering all 42 regional distribution centers[128] - Net sales to larger customers, including UNFI and Albertsons, accounted for approximately 13% of total revenue in the fiscal year ended September 27, 2025[131] - Future revenue growth is uncertain due to reliance on larger customers and potential fluctuations in their demand[131] - The company may incur significant liabilities under warranty claims, which could adversely affect its financial condition[140] - Increased operational expenses and customer acquisition costs may arise from new product launches, impacting financial performance[146] Technology and Innovation - The company’s systems utilize A.I.-powered software to enhance planning, sequencing, and decision-making, aiming to reduce the need for manual human intervention[40] - Autonomous A.I.-powered mobile robots in the company’s systems can travel at speeds exceeding 20 miles per hour, improving inventory handling capabilities[42] - The company’s systems are designed to operate with minimal human intervention, approaching true "lights-out" operation with 100% uptime[42] - The company has developed over 1,100 issued and/or pending patents, reflecting its substantial intellectual property portfolio[57] - The company utilizes A.I.-powered software to optimize storage, retrieval, and palletizing based on individual case characteristics, enhancing operational efficiency[54] - The company’s autonomous mobile robots can travel at speeds exceeding 20 mph, contributing to high operational efficiency[53] Market Opportunities and Risks - The company estimates an additional $52 billion market opportunity in healthcare and electronics verticals over the next 15 years[68] - The total addressable market is estimated at $433 billion, combining the U.S. market of $322 billion and an additional $111 billion from Canada, Germany, Italy, the United Kingdom, and France over the next 15 years[69] - The company identified a $305 billion addressable market in the U.S. for its micro-fulfillment solution, based on projected e-commerce sales of $2.6 trillion by 2030[70] - The GreenBox joint venture aims to invest at least $7.5 billion in purchasing systems over a six-year period, starting in fiscal year 2024[90][91] - The company faces competition from large retail and e-commerce firms, as well as companies offering point solutions and automated technologies, which could adversely affect sales and profitability[147] - Supply chain disruptions, including reliance on single-source suppliers, could lead to delays in manufacturing and delivery of systems[159] - Inflation and increased operating costs due to tariffs and commodity price fluctuations may adversely impact cash flow and financial condition[155] Human Resources and Talent Management - The company employed approximately 2,000 full-time employees as of September 27, 2025, with about 1,950 based in the United States[99] - Nearly half of the company's employees are engaged in engineering, research and development, and related technical functions[100] - The company continues to invest in initiatives to recruit top professionals in robotics, A.I., and industrial automation[103] - The company has a strategic approach to talent management, focusing on understanding capabilities required for current and future growth[104] - The ability to attract and retain highly qualified personnel is critical, as competition for skilled employees is intense in the industry[169] Compliance and Security - The company is subject to various governmental regulations that impact its capital expenditures, earnings, and competitive position[107] - The company has experienced cybersecurity incidents in the past and may face further incidents in the future, which could disrupt operations and lead to loss of proprietary information[119] - The company implemented a new enterprise resource planning system, which may impact its business and operations[120] - Any significant security incident could adversely impact sales, disrupt operations, and harm the company's reputation, potentially leading to legal liabilities[207] - The company has implemented security measures, but vulnerabilities remain, particularly with third-party software and hardware[201] - The company may need to undertake substantial compliance efforts in response to evolving privacy regulations, which could increase operating costs[217] Financial and Operational Challenges - The company has identified a material weakness in internal control over financial reporting as of September 27, 2025, affecting revenue recognition timing[142] - The company faces risks related to the successful development and integration of complex technology with customer systems[137] - The company may face challenges in raising additional capital on favorable terms, which could materially impact its financial condition and operations[178] - Customer agreements may allocate significant liabilities to the company, potentially disrupting business operations and adversely affecting financial condition[177] - The company’s systems may be affected by design and manufacturing defects, which could harm reputation and financial results[161] - The company’s ability to protect its proprietary technologies is uncertain, as there may be undisclosed patents held by third parties that could be infringed[199]

Debt and Financing - In July 2024, the Company refinanced the 2031 Asset-Backed Debt through a $351.0 million debt securitization, resulting in the issuance of various classes of notes with a weighted average interest rate of 6.2% as of September 30, 2025[47]. - As of September 30, 2025, the Company had $287.0 million of 2036 Asset-Backed Debt outstanding with a weighted average interest rate of 7.1%[48]. - The Company completed the 2037 Debt Securitization in February 2025, issuing $220.5 million of Class A-1 Notes and having $361.0 million of Asset-Backed Debt outstanding with a weighted average interest rate of 5.9% as of September 30, 2025[49]. - The company had outstanding borrowings totaling $1,782.9 million, with a weighted average annual interest rate of 6.1%[192]. - The company is exposed to risks associated with changes in interest rates, which may affect its cost of capital and net investment income[165]. - An increase in interest rates could lead to higher incentive fees payable to the Investment Adviser with respect to Pre-Incentive Fee Net Investment Income[166]. - Rising interest rates may increase the risk of defaults from portfolio companies holding floating rate securities[168]. - The company is partially dependent on its subsidiary Funding I for cash distributions to meet distribution requirements necessary to maintain RIC status[184]. - If the company incurs additional debt, it could further increase the risk of loss for investors, as lenders have superior claims on assets[189]. Investment Strategy and Portfolio - The Company targets an investment size of $5 million to $30 million in securities of middle-market companies, expecting first lien secured debt to represent at least 65% of its overall portfolio[54]. - The Company may invest up to 30% of its portfolio in non-qualifying assets, including investments in public companies with market capitalizations greater than $250 million[55]. - The Company focuses on investing in stable borrowers with positive cash flow, emphasizing fundamental analysis and a value-oriented approach[63]. - The Investment Adviser seeks to invest in portfolio companies with proven management teams and trusted financial sponsors to ensure quality and stability[64][65]. - The company focuses on investing broadly among portfolio companies across various industries and geographical regions to mitigate risks associated with downturns in specific sectors[66]. - The investment strategy includes targeting companies that generate steady cash flow, with expectations for cash flow to facilitate loan repayments and potential exits through strategic acquisitions or IPOs[67]. - A rigorous due diligence process is employed to evaluate new investment targets, utilizing information from various sources including management teams and financial sponsors[68]. - The company primarily invests in floating rate loans to U.S. middle-market companies, with a focus on industries where the Investment Adviser has expertise[83]. - As of September 30, the top ten portfolio companies represent a diverse range of industries, with Professional Services at 10% and Aerospace and Defense at 10% of consolidated portfolio assets[83]. Management and Fees - The base management fee for the Investment Adviser is set at an annual rate of 1.00% of average adjusted gross assets, with recorded expenses of $23.3 million, $14.9 million, and $11.4 million for the years ended September 30, 2025, 2024, and 2023 respectively[87]. - For the years ended September 30, 2025, 2024, and 2023, the Investment Adviser earned incentive fees of $26.0 million, $18.1 million, and $16.9 million, respectively, based on net investment income[89]. - The hurdle rate for Pre-Incentive Fee Net Investment Income is set at 1.75% per quarter, which annualizes to 7.00%[89]. - The incentive fee structure includes a "catch-up" provision that allows for 50% of the Pre-Incentive Fee Net Investment Income exceeding the hurdle but less than 2.9167%[89]. - The Investment Adviser is not exclusive and may provide similar services to other entities, with oversight from the company's board of directors to manage potential conflicts of interest[86]. - The Investment Adviser is responsible for determining the composition of the portfolio and managing investment changes[90]. - The Investment Adviser provides various investment advisory, research, and related services as needed[90]. Regulatory and Compliance - The company is a Business Development Company (BDC) under the 1940 Act and intends to maintain its election to be treated as a Regulated Investment Company (RIC)[113]. - The company must distribute dividends annually to maintain its RIC tax election, generally at least equal to 90% of the sum of ordinary income and realized net short-term capital gains[138]. - To avoid a 4% nondeductible federal excise tax, the company must distribute at least 98% of its net ordinary income and 98.2% of capital gains exceeding capital losses[139]. - The company is required to provide significant managerial assistance to portfolio companies that constitute qualifying assets under the 1940 Act[118]. - The company has adopted a joint code of ethics and a code of conduct to establish procedures for personal investments and restrict certain personal securities transactions[121]. - The company must maintain its status as a RIC to avoid corporate-level income taxation, which would significantly reduce net assets and income available for debt service and distributions[176]. - The company may face difficulties in meeting its Annual Distribution Requirement if it recognizes income before receiving cash, potentially impacting its ability to qualify as a RIC[177]. - The company has adopted updated policies to comply with SEC Rule 18f-4, which may affect how leverage is calculated under the 1940 Act[253]. Risks and Challenges - The company has identified material weaknesses in its internal controls over financial reporting, which could adversely affect its ability to report financial results accurately and timely[172]. - As of September 30, 2025, the company does not maintain effective internal control over financial reporting, raising concerns about potential misstatements in financial statements[172]. - The company is in the process of remediating identified material weaknesses but cannot estimate when the remediation will be completed, increasing the risk of undetected errors in future financial statements[173]. - The company is exposed to increased risk of loss due to leverage, with a leverage ratio of 166% of net assets as of September 30, 2025, requiring an annual return of at least 3.8% to cover interest payments[191]. - The company may face significant potential conflicts of interest due to overlapping investment objectives with affiliated funds managed by the Investment Adviser[200]. - The company may experience fluctuations in quarterly results due to factors such as interest rates, default rates, and general economic conditions[204]. - The company may face liquidity issues as substantially all investments are subject to legal restrictions on resale, making them less liquid than publicly traded securities[224]. - Economic downturns could impair portfolio companies, leading to increased non-performing assets and decreased portfolio value[235]. - The company primarily invests in floating rate loans, which are often rated below investment grade and carry significant credit risk[230]. - The incentive fee structure may encourage the Investment Adviser to make riskier investments, potentially leading to higher investment losses[243]. Shareholder Considerations - The company may issue additional common stock or senior securities, which could dilute existing shareholders' ownership and voting rights[185]. - The company may seek stockholder approval to issue shares below the current NAV per share, which could materially dilute stockholder interests[254]. - Any issuance of shares below NAV will result in immediate dilution of stockholder interests and a reduction in NAV per share[255]. - The actual dilutive effect of future share issuances below NAV is currently unknown, and the company cannot predict the resulting reduction in NAV per share[255]. - The determination of NAV for share offerings will be made by the board of directors, ensuring compliance with the 1940 Act unless stockholder consent is obtained[257]. - The company intends to make monthly distributions to stockholders but cannot assure specified levels or year-to-year increases due to asset coverage ratio requirements[258]. - There is a risk that stockholders may not receive distributions or that distributions may not grow over time[258]. - Distributions may include a return of capital, which could increase tax liabilities for stockholders upon future sale of common stock[258].

Financial Performance - Record net sales of $267.0 million, representing 13% year-over-year growth[4] - GAAP gross margin of 51.9%, up from 51.1% a year ago, and Non-GAAP adjusted gross margin of 53.0%, up from 52.4% a year ago[4] - GAAP operating margin of 11.6% compared to 7.5% a year ago, and Non-GAAP adjusted operating margin of 20.6% compared to 18.3% a year ago[4] - Non-GAAP adjusted diluted earnings per share of $0.48 compared to $0.26 a year ago[4] - Adjusted EBITDA of $62.7 million, with an adjusted EBITDA margin of 23.5%[5] - Q3'26 adjusted operating income (Non-GAAP) increased to $54.9 million, up from $48.6 million in Q2'26 and $43.4 million in Q3'25, reflecting a year-over-year growth of 26.5%[35] - Q3'26 adjusted EBITDA reached $62.7 million, compared to $56.5 million in Q2'26 and $51.1 million in Q3'25, indicating a 22.5% increase year-over-year[41] - The operating margin (GAAP) for Q3'26 improved to 11.6%, a significant recovery from a loss margin of (6.3)% in Q2'26 and an increase from 7.5% in Q3'25[41] - Q3'26 net loss (GAAP) narrowed to $(2.9) million, a substantial improvement from $(27.1) million in Q2'26 and $(7.6) million in Q3'25[38] - Adjusted diluted earnings per share (Non-GAAP) for Q3'26 was $0.48, up from $0.41 in Q2'26 and $0.26 in Q3'25, representing an 84.6% increase year-over-year[38] - Q3'26 total operating expenses (GAAP) decreased to $107.4 million from $150.3 million in Q2'26, showing a reduction of 28.5%[35] - The company reported an adjusted net income (Non-GAAP) of $44.1 million in Q3'26, compared to $36.7 million in Q2'26 and $20.3 million in Q3'25, marking a 117.8% increase year-over-year[38] Future Outlook - Fourth quarter outlook projects net sales of $273.0 million, with a variance of +/- $5.0 million[6] - Expected adjusted diluted earnings per share for the fourth quarter is $0.43, with a variance of +/- $0.03[6] Cash Flow and Assets - Free cash flow for Q3'26 was $44.6 million, up from $41.5 million in Q2'26 and $29.1 million in Q3'25[30] - Total current assets increased to $620.9 million as of October 26, 2025, compared to $585.5 million on January 26, 2025[28] - Long-term debt decreased to $490.5 million from $505.9 million since January 26, 2025[28] - Cash and cash equivalents rose to $164.7 million from $151.7 million since January 26, 2025[28] Market Position and Strategy - The company is focused on ultra-power-efficient solutions for high-bandwidth data center networking and IoT applications[3] - The company anticipates ongoing growth trends and market position improvements in the IoT and cloud connectivity sectors[19] - The company is focused on empowering solution architects and application developers to create innovative products for various markets[23] Segment Performance - The company reported a segment gross margin of 61.3% for total semiconductor products in Q3'26[32] - Gross profit for Q3'26 was $138.5 million, resulting in a gross margin of 51.9%, compared to 52.1% in Q2'26 and 51.1% in Q3'25[26][32] Interest and Debt - Interest expense (GAAP) for Q3'26 was $26.2 million, significantly higher than $4.7 million in Q2'26 but lower than $20.3 million in Q3'25[38]

Financial Performance - Total revenue for Q3 FY 2026 was $1,229.8 million, representing a 4.4% year-over-year increase[5] - Enterprise revenue reached $741.4 million, up 6.1% year-over-year[5] - GAAP net income for Q3 was $612.9 million, or $2.01 per share, compared to $207.1 million, or $0.66 per share, in the same quarter last year[6] - Non-GAAP diluted EPS for Q3 was $1.52, up 10.1% year-over-year[5] - GAAP revenue for Q3 2025 was $1,229,835, representing a year-over-year growth of 4.4%[34] - GAAP net income for the nine months ended October 31, 2025, was $1,226,068, up from $642,373 in the same period last year, marking a significant increase of 90.7%[34] - The company reported a basic net income per share of $2.05 for the three months ended October 31, 2025, compared to $0.67 for the same period in 2024, an increase of 205.2%[30] Cash Flow and Expenses - Operating cash flow for Q3 was $629.3 million, a 30.2% increase year-over-year[5] - Free cash flow for Q3 was $614.3 million, compared to $457.7 million in Q3 FY 2025[6] - Cash flows from operating activities for the three months ended October 31, 2025, were $629,326, up from $483,217 in the same period of 2024, an increase of 30.3%[32] - Operating expenses decreased to $647,651 for the three months ended October 31, 2025, from $710,820 in the same period of 2024, a reduction of 8.9%[30] - Free cash flow (non-GAAP) for Q3 2025 was $614,317, compared to $457,733 in Q3 2024, indicating a growth of 34.2%[34] Guidance and Projections - Fourth quarter revenue guidance is projected between $1.230 billion and $1.235 billion[14] - Full fiscal year 2026 revenue is expected to be between $4.852 billion and $4.857 billion[14] Customer Metrics - The number of customers contributing over $100,000 in trailing 12 months revenue increased by 9.2% year-over-year, totaling 4,363 customers[14] Assets and Equity - Total assets as of October 31, 2025, were $11,390,811, compared to $10,988,421 as of January 31, 2025, an increase of 3.7%[28] - Total stockholders' equity increased to $9,286,840 as of October 31, 2025, from $8,935,084 as of January 31, 2025, reflecting a growth of 3.9%[28] Strategic Investments - Strategic investments increased to $1,052,604 as of October 31, 2025, from $591,481 as of January 31, 2025, a rise of 77.8%[28] Revenue and Profitability Metrics - Gross profit for the three months ended October 31, 2025, was $958,065, representing a gross margin of approximately 77.9%[30] - Non-GAAP income from operations for Q3 2025 reached $506,950, compared to $457,794 in Q3 2024, reflecting an increase of 10.7%[34] - GAAP operating margin improved to 25.2% in Q3 2025 from 15.5% in Q3 2024[34] - Operating cash flow margin (GAAP) increased to 51.2% in Q3 2025 from 41.0% in Q3 2024[34] - Revenue in constant currency (non-GAAP) for Q3 2025 was $1,227,416, with a year-over-year growth of 4.2%[34] Stock Repurchase - Zoom's Board of Directors authorized an additional $1.0 billion for stock repurchase, increasing the total authorization to $1.310 billion[10]

Financial Performance - For the fiscal year ended September 30, 2025, the investment portfolio totaled $1,287.3 million, with net assets of $464.0 million and a net asset value per share of $7.11, reflecting a quarterly change of (3.4)%[2] - Net investment income for the year was $46.1 million, or $0.71 per share, down from $60.1 million, or $0.92 per share, in the previous year[20] - Total investment income for the year ended September 30, 2025, was $122.4 million, a decrease from $143.8 million in 2024[36] - The net increase in net assets resulting from operations was $32.7 million, or $0.50 per share, compared to $48.9 million, or $0.75 per share in the prior year[24] - The net increase in net assets resulting from operations was $18,369 million, compared to a decrease of $964 million in the previous period[37] Distributions and Expenses - The company declared distributions of $0.96 per share for the year, with a quarterly distribution of $0.24 per share[2] - Distributions declared during the year ended September 30, 2025, totaled $62.7 million, compared to $57.4 million in the previous year[30] - Total expenses for the year were $76.3 million, a decrease from $83.7 million in the previous year, primarily due to lower interest expenses[18] - Base management fee for the period was $4,005 million, a decrease from $4,297 million in the previous period[37] - General and administrative expenses rose to $1,250 million, compared to $850 million, marking a 47% increase[37] Investment Activity - For the year ended September 30, 2025, the company invested $746.6 million in 28 new and 161 existing portfolio companies, achieving a weighted average yield of 10.2%[9] - The weighted average yield on debt investments was 11.0% for the year, with a portfolio consisting of 166 companies and an average investment size of $7.0 million[7] - The company has a diversified investment strategy focusing on first lien secured debt, second lien secured debt, subordinated debt, and equity investments[38] Portfolio Status - As of September 30, 2025, the portfolio had net unrealized appreciation of $50.4 million, up from $11.2 million the previous year[22] - The company had four portfolio companies on non-accrual status, representing 1.3% of the overall portfolio on a cost basis[7] - The net unrealized depreciation on the Credit Facility as of September 30, 2025, was $(1.0) million, slightly improved from $(1.1) million in 2024[23] Liquidity and Capital Structure - As of September 30, 2025, the company had cash and cash equivalents of $51.8 million, up from $49.9 million in 2024, indicating improved liquidity[27] - The Truist Credit Facility had outstanding borrowings of $426.5 million as of September 30, 2025, with a weighted average interest rate of 6.5%, down from 7.2% in 2024[26] - The company expects to continue using debt capital and proceeds from securities offerings to finance its investment objectives[25] Future Outlook - The company anticipates continued growth in middle-market credit investments, leveraging its comprehensive financing solutions[40] - Forward-looking statements indicate potential risks and uncertainties that may affect future performance[41]

Financial Performance - For the quarter ended September 30, 2025, the investment portfolio totaled $2,773.3 million, with net assets of $1,074.5 million and a GAAP net asset value per share of $10.83, reflecting a quarterly change of (1.2)%[2] - Net investment income for the quarter was $27.5 million or $0.28 per share, compared to $18.0 million or $0.24 per share for the same quarter in 2024, indicating a growth driven by an increase in the debt portfolio size[18] - Total investment income for the year ended September 30, 2025, was $261.4 million, up from $186.4 million in 2024, primarily due to the growth in the debt portfolio[16] - For the year ended September 30, 2025, net investment income was $107.2 million, compared to $77.7 million in 2024, marking an increase of approximately 37.9%[37] - The company declared total distributions of $113.9 million for the year ended September 30, 2025, compared to $80.6 million in 2024, reflecting a year-over-year increase of 41.2%[30] Investment Activities - The company invested $633.0 million in 11 new and 105 existing portfolio companies during the quarter, achieving a weighted average yield on debt investments of 10.5%[9] - The weighted average yield on debt investments at quarter-end was 10.2%, with approximately 99% of the debt portfolio consisting of variable-rate investments[7] - The company formed a joint venture, PennantPark Senior Secured Loan Fund II, LLC, with commitments of $200 million, aiming to invest primarily in middle market loans[31] - In September 2025, the company acquired a portfolio of assets valued at approximately $250 million, projected to be accretive to Core NII by one to two cents per share quarterly[32] Market Conditions - The company reported net realized losses of $(14.3) million for the quarter and $(5.9) million for the year, compared to $(0.3) million and $0.2 million in the prior year, reflecting changes in market conditions[19] - As of September 30, 2025, the portfolio had net unrealized depreciation of $46.1 million, compared to $11.4 million in the previous year, driven by capital market conditions[20] Debt and Equity Management - Regulatory debt to equity ratio stood at 1.66x, indicating a disciplined approach to leverage in the investment strategy[2] - For the year ended September 30, 2025, the annualized weighted average cost of debt decreased to 6.8% from 8.5% in 2024[24] - The company sold $118 million of assets to PSSL and $191 million to PSSL II, using the net proceeds to pay down its Credit Facility and reduce the debt-to-equity ratio to 1.41x[33] Cash and Assets - As of September 30, 2025, the company had cash equivalents of $122.7 million, an increase from $112.1 million in 2024[25] - As of September 30, 2025, total assets were $2.91 billion, an increase from $2.11 billion in 2024, indicating a growth of approximately 37.9%[36] Future Outlook - The company expects its dividend policy to remain stable, supported by growing net investment income and potential spillover income of $0.25 per share[6] - Forward-looking statements made by the company are subject to various risks and uncertainties that could cause actual results to differ materially[41] - The company does not guarantee future performance or results based on forward-looking statements[41] Advisory and Contact Information - The information provided does not constitute specific legal, tax, or accounting advice[43] - The company encourages consultation with qualified professionals for legal and tax advice[43] - Contact information for inquiries includes Richard T. Allorto, Jr. at PennantPark Floating Rate Capital Ltd.[44] Company Overview - PennantPark Investment Advisers, LLC manages approximately $10 billion of investable capital, including potential leverage[40] - The company has been providing access to middle-market credit since its inception in 2007[40] - PennantPark Investment Advisers offers a comprehensive range of creative and flexible financing solutions to private equity firms and middle-market borrowers[40] - The company is headquartered in Miami and has offices in major cities including New York, Chicago, and Los Angeles[40]