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]

Financial Performance - Symbotic reported Q4 fiscal year 2025 revenue of $618 million, a 9.4% increase from $565 million in Q4 fiscal year 2024[2] - The company experienced a net loss of $19 million in Q4 fiscal year 2025, compared to a net income of $16 million in the same quarter last year[2] - Adjusted EBITDA for Q4 fiscal year 2025 was $49 million, up from $42 million in Q4 fiscal year 2024, reflecting a 16.7% increase[2] - For the full fiscal year 2025, revenue reached $2,247 million, representing a 26% year-over-year growth[3] - The net loss for the full fiscal year 2025 was $91 million, with adjusted EBITDA totaling $147 million[3] Cash and Liquidity - Cash and cash equivalents increased by $467 million from the prior quarter, totaling $1,245 million at the end of Q4 fiscal year 2025[2] - Free cash flow for the three months ended September 27, 2025, was $494,434,000, compared to a negative free cash flow of $153,210,000 in the same period of 2024[24] - The company reported a net cash provided by operating activities of $530,680,000 for the three months ended September 27, 2025[24] - Cash and cash equivalents rose to $1,244,993 thousand, compared to $727,310 thousand in the previous year, marking an increase of 71%[28] - The company reported a net increase in cash, cash equivalents, and restricted cash of $466,553 thousand for the three months ended September 27, 2025[31] Operational Metrics - Total revenue for the three months ended September 27, 2025, was $618,457,000, an increase of 4.7% compared to $592,121,000 for the same period in 2024[20] - Gross profit for the three months ended September 27, 2025, was $127,121,000, representing a gross profit margin of 20.6%, up from 18.2% in the previous year[23] - Operating income for the three months ended September 27, 2025, was a loss of $21,762,000, compared to a loss of $36,556,000 in the same period of 2024[20] - Adjusted EBITDA for the three months ended September 27, 2025, was $49,442,000, an increase from $45,394,000 in the previous year[23] - Total operating expenses for the three months ended September 27, 2025, were $148,883,000, compared to $144,178,000 in the same period of 2024[20] Customer and Market Expansion - The company added Medline as its first customer in the healthcare vertical, indicating expansion into new markets[3] - Symbotic's management expressed optimism about the transition to next-generation storage structures, aligning with customer expectations[3] - The company is focused on enhancing operational systems and margin expansion as part of its growth strategy[3] Balance Sheet and Equity - Total assets increased to $2,401,197 thousand in September 2025, up from $1,578,552 thousand in September 2024, representing a growth of 52%[28] - Total current liabilities increased to $1,729,423 thousand, up from $1,017,146 thousand, reflecting a rise of 70%[28] - Total stockholders' equity rose to $221,318 thousand, compared to $197,233 thousand in the previous year, an increase of 12%[28] - The number of Class A Common Shares outstanding increased to 112,635,932 as of September 27, 2025, from 104,689,377 a year earlier[26] Research and Development - Research and development expenses for the three months ended September 27, 2025, were $58,732,000, an increase of 12.4% from $52,147,000 in the same period last year[24] Deferred Revenue and Stock-Based Compensation - Deferred revenue increased significantly to $1,242,312 thousand, up from $676,314 thousand, indicating a growth of 83%[28] - The company incurred stock-based compensation expenses of $64,368 thousand for the three months ended September 27, 2025, compared to $49,440 thousand in the previous quarter[30]

Financial Performance - Fourth quarter net sales reached $995 million, a 16% increase year-over-year, while fiscal year 2025 net sales totaled $3.6 billion, up 7%[5] - Net earnings for the fourth quarter were $138 million, reflecting a 66% increase, and for fiscal year 2025, net earnings were $442 million, up 19%[5] - Adjusted EPS for the fourth quarter was $2.09, a 48% increase, and for fiscal year 2025, adjusted EPS was $6.89, up 13%[5] - Net Earnings for 2025 reached $442,111, an increase of 18.5% from $372,971 in 2024[32] - Adjusted Net Earnings for 2025 were $423,553, translating to $6.89 per share, compared to $379,136 or $6.11 per share in 2024[32] - Basic earnings per share increased to $2.30, up from $1.40 in Q3 2024, marking a 64.3% rise[26] Segment Performance - Aerospace segment sales grew 19.6% in Q4 2025, with segment earnings at $162 million, representing 24.4% of segment net sales[11] - Industrial segment sales increased by 10.6% in Q4 2025, with segment earnings of $49 million, or 14.6% of segment net sales[13] - Aerospace segment net sales increased to $661,205, up 19.6% from $552,790 in the same period last year[30] - Industrial segment net sales rose to $334,059, a 10.7% increase compared to $301,698 in Q3 2024[30] Cash Flow and Assets - Free cash flow for fiscal year 2025 was $340 million, a slight decrease of 1% compared to the previous year[5] - Free Cash Flow for the three months ended September 30, 2025, was $180,927, up from $117,673 in the same period of 2024[44] - Total assets as of September 30, 2025, were $4,630,143, an increase from $4,368,915 in 2024[28] - Cash and cash equivalents at the end of the period were $327,431, up from $282,270 in the previous year[29] - The company reported a total of $471,294 in net cash provided by operating activities for the year ended September 30, 2025, compared to $439,089 in 2024[29] Guidance and Future Plans - Fiscal 2026 guidance projects sales growth of 7% to 12%, with EPS expected to be between $7.50 and $8.00[18] - The company anticipates continued focus on growth and operational excellence, with guidance for fiscal year 2026 including sales and earnings projections[25] - Woodward plans to continue using its Investor Relations website and Facebook page for disclosing material non-public information[48] - FY26 free cash flow guidance is uncertain due to timing of capital expenditures, making reconciliation to net cash from operating activities unavailable without unreasonable effort[48] Strategic Initiatives - The company completed the strategic acquisition of Safran's North American Electromechanical Actuation business, enhancing its portfolio with advanced technology[8] - The company broke ground on a new facility in South Carolina aimed at advanced precision aerospace manufacturing[8] - The company authorized a new three-year $1.8 billion share repurchase program to enhance shareholder value[8] Expenses and Taxation - Research and development costs for Q3 2025 were $39,043, an increase from $34,689 in Q3 2024[26] - Adjusted Effective Income Tax Rate for 2025 was 22.3%, compared to 18.4% in 2024[33] - Income Tax Expense (U.S. GAAP) for 2025 was $79,300, a decrease from $81,000 in 2024[36] - Payments for property, plant, and equipment in 2025 totaled $130,928, compared to $96,280 in 2024[45] Earnings Before Interest and Taxes - EBIT for 2025 was $562,911, an increase from $495,472 in 2024[38] - Adjusted EBITDA for 2025 was $669,511, compared to $619,785 in 2024[41] - Non-Segment Expenses for 2025 were $126,226, up from $119,745 in 2024[42] - Total non-U.S. GAAP Adjustments for 2025 included a product rationalization charge of $20,524[43]

Financial Performance - Cato Corporation reported a net loss of $5.2 million or ($0.28) per diluted share for Q3 2025, an improvement from a net loss of $15.1 million or ($0.79) per diluted share in Q3 2024[2][11]. - Sales for Q3 2025 were $153.7 million, a 6% increase from $144.6 million in Q3 2024, with same-store sales rising by 10%[3][11]. - For the nine months ended November 1, 2025, net income was $5.0 million or $0.25 per diluted share, compared to a net loss of $4.0 million or ($0.24) per diluted share in the same period of 2024[4][11]. - Year-to-date sales reached $496.8 million, a 2% increase from $486.8 million in the prior year, with same-store sales up by 6%[4][11]. Cost Management - Gross margin improved to 32.0% in Q3 2025 from 28.8% in Q3 2024, driven by lower freight and distribution costs[5][11]. - Year-to-date gross margin increased to 34.5% from 33.3% in the prior year, reflecting improved cost management[6][11]. - Selling, general and administrative (SG&A) expenses decreased to $57.0 million in Q3 2025, down from $57.9 million in Q3 2024, representing 37.1% of sales compared to 40.0%[5][11]. Store Operations - The company closed 16 stores year-to-date, operating 1,101 stores as of November 1, 2025, down from 1,167 stores a year earlier[7]. Tax and Economic Outlook - The tax benefit for Q3 2025 was $1.2 million, compared to a tax expense of $0.3 million in the prior year, mainly due to reduced foreign income taxes[5][11]. - Cato Corporation anticipates challenges in Q4 2025 due to expected economic slowdown and will focus on managing expenses and inventory levels[5].

Financial Performance - Net sales and other operating revenues decreased by $281 million in fiscal 2025 compared to fiscal 2024, driven by lower volumes in the Reinforcement Materials segment ($125 million) and less favorable pricing and product mix in both segments ($160 million combined) [186] - Gross profit decreased by $20 million in fiscal 2025 compared to fiscal 2024, primarily due to lower volumes in the Reinforcement Materials segment, partially offset by higher volumes in the Performance Chemicals segment [187] - Income (loss) from operations before income taxes and equity in earnings of affiliated companies increased in fiscal 2025 compared to fiscal 2024, primarily due to lower losses from currency devaluations in Argentina and higher segment EBIT in Performance Chemicals [185] - The decrease in net sales was attributed to lower customer demand driven by uncertainty from tariffs and a weaker global macroeconomic environment [186] - Net income attributable to Cabot Corporation decreased to $331 million in fiscal 2025 from $380 million in fiscal 2024, primarily due to a higher provision for income taxes [196] - Total segment EBIT for fiscal 2025 was $702 million, slightly up from $701 million in fiscal 2024 [198] - Sales in Reinforcement Materials decreased by $269 million in fiscal 2025, totaling $2,341 million, primarily due to lower volumes and less favorable pricing [202] - EBIT in Performance Chemicals increased by $30 million in fiscal 2025, totaling $194 million, driven by higher volumes and lower selling and administrative expenses [205] Expenses and Cost Management - Selling and administrative expenses decreased from $283 million in fiscal 2024 to $260 million in fiscal 2025 [187] - Selling and administrative expenses decreased by $23 million in fiscal 2025 compared to fiscal 2024, primarily due to cost management efforts [188] - Research and technical expenses decreased by $4 million in fiscal 2025, totaling $59 million, compared to $63 million in fiscal 2024 [188] - Interest and dividend income decreased by $5 million in fiscal 2025, totaling $27 million, primarily due to lower interest rates [189] - Interest expense decreased by $5 million in fiscal 2025, totaling $76 million, primarily due to lower interest rates on short-term borrowings [189] - Other expense decreased by $29 million in fiscal 2025, totaling $(7) million, primarily due to lower foreign currency losses in Argentina [190] Cash Flow and Liquidity - As of September 30, 2025, the liquidity position increased by $75 million, with cash and cash equivalents of $258 million and borrowing availability of $1.2 billion [207] - Cash provided by operating activities totaled $665 million in fiscal 2025, down from $692 million in fiscal 2024 [214] - Cash flows from investing activities consumed $298 million in fiscal 2025, compared to $235 million in fiscal 2024, primarily for capital expenditures [217] - Financing activities consumed $336 million in cash in fiscal 2025, down from $415 million in fiscal 2024, with significant repurchases of common stock totaling $168 million [220] - The company repurchased approximately 1.8 million shares for $156 million in fiscal 2025, compared to 1.7 million shares for $159 million in fiscal 2024 [223] - Cash dividends paid were $1.76 per share in fiscal 2025, totaling $96 million, compared to $1.66 per share totaling $93 million in fiscal 2024 [224] Capital Expenditures and Future Outlook - Capital expenditures for fiscal 2026 are expected to be between $200 million and $250 million, focusing on sustaining and compliance projects [219] - The company had $130 million in borrowings outstanding under the Euro Credit Agreement as of September 30, 2025, with no outstanding borrowings under the U.S. Credit Agreement [211] - The weighted-average interest rate on fixed-rate long-term debt was 4.29% as of September 30, 2025 [222] Foreign Currency and Taxation - The assessment of deferred tax assets is conducted quarterly, with valuation allowances established when it is more likely than not that some or all of the deferred tax assets are not realizable [168] - The company recorded a significant reserve for respirator liability claims, with potential developments that could materially affect the estimate of liabilities [171] - Goodwill is subject to annual impairment testing, with significant assumptions including discount rates and forecasted results for the applicable reporting unit [172] - Foreign currency translations increased segment EBIT by $10 million in fiscal 2025, while in fiscal 2024, it decreased EBIT by $5 million [238] - The company recognized net foreign exchange losses of $8 million in fiscal 2025, compared to $46 million in fiscal 2024, largely due to changes in the Argentine peso [239]