Financial Performance - Net sales for the first quarter of fiscal 2025 increased by 4.7% to $5,033.1 million compared to $4,807.1 million in the same period last year[3] - Total revenues increased by 4.8% to $5,153.5 million from $4,918.5 million in the prior year[3] - Operating income grew by 26.7% to $203.6 million, while net income increased by 34.9% to $149.8 million[3] - Adjusted EBITDA for the quarter was $285.8 million, reflecting a 20.9% increase from $236.4 million in the previous year[9] - Net income for the thirteen weeks ended May 3, 2025, was $149,768,000, an increase of 35% compared to $111,019,000 for the same period in 2024[19] - Adjusted net income for the same period was $150,875,000, up from $113,408,000, resulting in an adjusted EPS of $1.14 compared to $0.85 in the prior year[33] - Adjusted EBITDA for the thirteen weeks ended May 3, 2025, was $285,836,000, a 20.9% increase from $236,386,000 in the same period last year[35] Membership and Sales Growth - Membership fee income rose by 8.1% year-over-year to $120.4 million, driven by strong membership acquisition and retention[5] - Comparable club sales increased by 1.6% year-over-year, with a 3.9% increase when excluding gasoline sales[5] - Fiscal 2025 guidance remains unchanged, with expected comparable club sales growth of 2.0% to 3.5% year-over-year and adjusted EPS projected to range from $4.10 to $4.30[10] Capital and Investment - The company opened five new clubs and four new gas stations during the quarter[5] - The company invested $140,497,000 in property and equipment during the period, compared to $105,741,000 in the prior year[19] Cash Flow and Debt - Net cash provided by operating activities was $208,093,000, slightly up from $200,847,000 in the previous year[39] - Adjusted free cash flow decreased to $67,596,000 from $95,106,000 year-over-year[39] - Total debt as of May 3, 2025, was $548,880,000, resulting in net debt of $509,396,000 after accounting for cash and cash equivalents[40] - The net debt to LTM adjusted EBITDA ratio was 0.4x, indicating a strong leverage position[40] - Cash and cash equivalents at the end of the period were $39,484,000, compared to $35,094,000 at the end of the same period last year[19] Asset Management - Total assets increased to $7,157.7 million as of May 3, 2025, compared to $6,824.7 million a year earlier[17] - The company experienced a significant increase in accounts receivable, net, which rose to $39,735,000 from $3,491,000 year-over-year[19] Shareholder Returns - The company repurchased 55,000 shares of common stock for a total of $6.2 million under its existing share repurchase program[9]

Revenue Performance - Total revenue for fiscal 2025 fourth quarter reached a record $230.5 million, a 9.3% increase compared to the prior year period[4] - For fiscal 2025, total revenue increased 10.8% to $878.3 million, with $47.5 million or 6.0% attributed to inorganic growth from acquisitions[19] - Contractor Solutions segment revenue for the fourth quarter was $165.9 million, a 17.5% increase, driven by both organic and inorganic growth[15] - Contractor Solutions segment revenue increased by $80.8 million or 15.1% year-over-year, reaching $617.3 million, driven by $47.5 million from acquisitions and $33.3 million from organic growth[30] - Engineered Building Solutions segment revenue increased by $6.4 million or 5.6% to $121.1 million, attributed to backlog conversion and market expansion[33] - For the year ended March 31, 2025, consolidated net revenue was $878,301,000, up from $792,840,000 in 2024, reflecting a year-over-year increase of 10.8%[64] Net Income and Earnings - Net income attributable to CSWI for the fourth quarter was $35.1 million, representing an 18.7% increase from $31.8 million in the prior year[4] - Net income attributable to CSWI for the full year improved 34.4% to $136.7 million, with adjusted EPS increasing 20.0% to $8.41[26] - Net income attributable to CSW Industrials, Inc. for the year was $136.652 million, up from $101.648 million in the prior year, reflecting a year-over-year increase of 34.4%[47] - Net income for the year ended March 31, 2025, increased to $137,484,000, up from $102,539,000 in 2024, representing a growth of 34%[51] - Adjusted net income attributable to CSWI for the year ended March 31, 2025, was $137,249,000, compared to $109,148,000 in 2024, reflecting a 26% increase[53] EBITDA and Operating Income - Adjusted EBITDA for the fourth quarter grew 7.1% to $59.8 million, with a margin of 25.9%[4] - Adjusted EBITDA for the year ended March 31, 2025, reached $227,860,000, up from $200,011,000 in 2024, indicating a growth of 14%[58] - Adjusted EBITDA for the Contractor Solutions segment was $205.4 million, or 33.3% of revenue, compared to $173.7 million, or 32.4% of revenue in the prior year[31] - Adjusted Operating Income for the year ended March 31, 2025, was $185,641,000, which is 21.1% of revenue, compared to $159,118,000 or 20.1% of revenue for the year ended March 31, 2024[64] Cash Flow and Liquidity - Cash and cash equivalents rose significantly to $225.845 million from $22.156 million year-over-year, indicating improved liquidity[49] - Cash flows from operating activities for the year ended March 31, 2025, totaled $168,362,000, slightly higher than $164,332,000 in 2024[51] - Free cash flow for the three months ended March 31, 2025, was $22,762,000, which is 38.1% of Adjusted EBITDA, compared to $17,511,000 or 31.4% for the same period in 2024[66] - For the year ended March 31, 2025, free cash flow was $152,096,000, representing 66.7% of Adjusted EBITDA, compared to $147,757,000 or 73.9% for the year ended March 31, 2024[66] Acquisitions and Investments - The company invested $84.7 million in acquisitions and returned $32.9 million to shareholders through dividends and share repurchases[4] - Following the fiscal year-end, the company announced the acquisition of Aspen Manufacturing for $313.5 million[4] - CSW Industrials closed the acquisition of Aspen Manufacturing for $313.5 million on May 1, 2025, with specific outlook metrics provided for fiscal year 2026[35] - Net cash used in investing activities increased significantly to $102,221,000 in 2025 from $42,504,000 in 2024, primarily due to cash paid for acquisitions[51] Operating Margins and Tax Rates - Operating income margin for fiscal 2025 improved to 20.6%, reflecting effective management of operating expenses[22] - The effective tax rate for the year ended March 31, 2025, was 23.7%, compared to 27.0% in 2024, showing an improvement in tax efficiency[55] - The adjusted effective tax rate for the year ended March 31, 2025, was 25.5%, compared to 26.1% in 2024, indicating a slight decrease[55] - The operating income margin for the Contractor Solutions segment improved to 26.9%, or 27.6% adjusted, an increase of 110 basis points from the prior year[31]

Financial Performance - Revenue for Q4 2025 was $134.1 million, a 5% increase year-over-year, while full-year revenue reached $498.2 million, a 1% increase[3] - Adjusted EBITDA for Q4 2025 was $30.5 million, up 29% from the previous year, with an Adjusted EBITDA margin of 22.7%[9] - Net income for Q4 2025 was $17.0 million, a 68% increase year-over-year, resulting in a GAAP EPS of $0.50[3] - Gross profit for Q4 2025 was $59.4 million, a 13% increase, with a gross margin of 44.3%[7] - Net income for the twelve months ended March 31, 2025, was $53,515 thousand, compared to $51,588 thousand in 2024, representing a growth of 3.7%[29] - Adjusted EBITDA for the twelve months ended March 31, 2025, was $109,231 million, compared to $104,201 million in the prior year, reflecting a growth of 4.0%[35] - The company reported a diluted income per share of $0.50 for the three months ended March 31, 2025, compared to $0.29 for the same period in 2024[29] - The adjusted fully diluted earnings per share (EPS) for the twelve months ended March 31, 2025, was $1.87, compared to $1.82 in the previous year, an increase of 2.7%[37] - The company reported a total revenue of $498,207 million for the twelve months ended March 2025, slightly up from $494,629 million in 2024, reflecting a growth of 0.4%[41] Orders and Backlog - New orders in Q4 2025 totaled $138.8 million, a 19% increase, with a book-to-bill ratio of 1.04x[10] - Backlog as of March 31, 2025, was $240.3 million, representing a 29% increase compared to the previous year[10] Guidance and Projections - Fiscal 2026 guidance projects revenue between $495 million and $535 million and Adjusted EBITDA between $104 million and $114 million[16] - Adjusted EBITDA and Adjusted EPS projections for fiscal 2026 cannot be reconciled to GAAP measures due to the uncertainty of future adjustments[22] - The company anticipates an increase in revenues and believes cash flows will be sufficient to meet needs for the next year[24] Strategic Focus - The company plans to focus on decarbonization, digitization, and diversification strategies in emerging markets for future growth[4] - The company plans to pursue strategic acquisitions and emerging growth opportunities across diverse regions and industry sectors[24] - The company is focused on developing strategic alliances with major customers and suppliers to enhance market position[24] - The company is committed to timely delivering backlog and responding to new market developments and technological advances[24] Cash Flow and Expenses - Free cash flow for the twelve months ended March 31, 2025, was $52,934 million, slightly down from $55,038 million in the previous year, a decrease of 3.8%[39] - Operating expenses for the three months ended March 31, 2025, were $32,837 thousand, slightly up from $32,823 thousand in the same period of 2024[29] - Operating expenses (OPEX) sales for the three months ended March 2025 were $111,803 million, compared to $104,276 million in 2024, marking an increase of 7.3%[41] - OPEX sales as a percentage of total sales increased to 83.4% for the three months ended March 2025, up from 81.7% in the same period of 2024[41] Assets and Liabilities - Total assets decreased from $767,740 million in March 2024 to $755,452 million in March 2025, a decline of approximately 1.7%[31] - Current liabilities increased from $109,269 million in March 2024 to $112,663 million in March 2025, an increase of approximately 4.4%[31] - Total liabilities decreased from $292,853 million in March 2024 to $260,137 million in March 2025, a reduction of about 11.2%[31] - Cash and cash equivalents decreased from $50,431 million at the beginning of the period to $41,422 million at the end of the period, a decline of 17.5%[33] - The company reported an increase in retained earnings from $288,783 million in March 2024 to $342,298 million in March 2025, an increase of 18.5%[31] Sales Performance - For the three months ended March 31, 2025, sales were $134,080 thousand, an increase of 3.4% compared to $127,654 thousand for the same period in 2024[29] - Point-in-Time Sales for the twelve months ended March 2025 were $353,072 million, up from $300,606 million in 2024, reflecting a year-over-year increase of 17.5%[41] - Over Time Sales for Small Projects totaled $69,198 million for the twelve months ended March 2025, down from $74,471 million in 2024, indicating a decline of 7.0%[41] - Over Time Sales for Large Projects decreased to $75,937 million in the twelve months ended March 2025 from $119,552 million in 2024, a significant drop of 36.5%[41] - Total Over-Time Sales for the twelve months ended March 2025 were reported at $145,135 million, down from $194,023 million in 2024, a decrease of 25.2%[41] - The company has restructured its reporting of Over Time Sales into Small Projects and Large Projects for better clarity[41] - The company continues to focus on expanding its market presence despite the fluctuations in project revenues[41]

Acquisitions and Growth Strategy - CSWI completed the acquisition of Aspen Manufacturing for approximately $330.4 million, enhancing its Contractor Solutions segment with high-quality HVAC/R products[16]. - The company invested nearly $200 million in multiple acquisitions during fiscal years 2023, 2024, and 2025, including the acquisition of Aspen Manufacturing, LLC[42]. - The acquisition of PF WaterWorks was finalized for $45.6 million, expanding the Company's plumbing product portfolio with eco-friendly solutions[164]. - The company has completed 17 acquisitions since its inception, focusing on product-line acquisitions with low integration risk, enhancing revenue growth and profitability[41]. - The company aims for both organic growth and strategic acquisitions to expand its product portfolio and market presence[12]. - The company acquired PSP Products, Inc. for $51.3 million, funded by cash on hand and borrowings, enhancing its HVAC/R offerings[165]. - The acquisition of Dust Free, LP was completed for $34.2 million, contributing to the Contractor Solutions segment's product portfolio[166]. Financial Performance - The company reported net revenues of $878.3 million for the year ended March 31, 2025, an increase of $85.5 million or 10.8% compared to the previous year[182]. - Organic sales increased by $37.9 million or 4.8% year-over-year, driven by increased unit volumes and pricing actions[182]. - Gross profit for the year ended March 31, 2025 was $393.3 million, a 12.1% increase from the prior year, with a gross profit margin of 44.8%[186]. - The gross profit margin increased from 44.2% in 2024 to 44.8% in 2025, reflecting improved operational efficiency and pricing strategies[186]. - Operating income for the year ended March 31, 2025 increased by $22.1 million, or 13.9%, compared to 2024, driven by a $42.6 million increase in gross profit[190]. - Selling, general and administrative expenses for the year ended March 31, 2025 increased by $20.4 million, or 10.7%, compared to 2024, primarily due to expenses related to acquisitions and increased employee compensation[188]. - Interest expense, net for the year ended March 31, 2025 decreased by $12.5 million, or 97.9%, compared to 2024, due to reduced average borrowing and strong operating cash flows[192]. - The effective tax rate for the year ended March 31, 2025 was 23.7%, compared to 27.0% for 2024, influenced by state tax expenses and executive compensation limitations[196]. Business Segments - CSWI operates in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions, serving diverse end markets including HVAC/R, plumbing, and energy[18]. - The Contractor Solutions segment focuses on efficiency and performance-enhancing products, with a strong reputation among HVAC/R contractors[20]. - The Specialized Reliability Solutions segment provides high-performance products for industrial applications, competing on product differentiation and quality[27]. - Engineered Building Solutions offers life-safety products that meet code requirements, targeting commercial and multi-family residential markets[32]. - Net revenues for the Contractor Solutions segment for the year ended March 31, 2025 increased by $80.8 million, or 15.1%, compared to 2024, with acquisitions contributing $47.5 million[202]. - Operating income for the Contractor Solutions segment for the year ended March 31, 2025 increased by $23.9 million, or 16.8%, compared to 2024, with an operating margin of 26.9%[204]. - Net revenues for the Specialized Reliability Solutions segment for the year ended March 31, 2025 decreased by $2.0 million, or 1.3%, compared to 2024, primarily due to lower unit volumes[207]. - Operating income for the Specialized Reliability Solutions segment for the year ended March 31, 2025 increased by $0.4 million, or 1.8%, compared to 2024, with an operating margin of 15.4%[209]. Employee Engagement and Culture - The company achieved a voluntary retention rate of 85% for all employees, reflecting a 2% improvement from the prior fiscal year[54]. - Approximately 82% of employees participated in the fiscal 2025 engagement survey, which indicated high overall employee engagement scores[53]. - The company has a 401(k) plan with a 93% participation rate, significantly higher than the industry benchmark of approximately 64%[61]. - The company has a culture of continuous improvement in manufacturing processes, aiming to reduce costs and improve product quality[39]. - The competitive labor market may lead to increased wage inflation and challenges in attracting and retaining qualified personnel, impacting operational efficiency[95]. Risks and Challenges - The company faces risks from cyclical end markets such as HVAC/R, construction, and energy, which can lead to significant fluctuations in operating results and cash flows[71]. - Supply chain disruptions and inflationary pressures have negatively impacted manufacturing and logistics costs, affecting gross margins[82]. - The company faces risks from cybersecurity breaches that could disrupt operations and expose sensitive data, which may lead to financial losses and legal claims[90]. - The company recognizes the inherent risks associated with international operations, including political and economic uncertainties, which could disrupt business activities[79]. - The company is evaluating the potential impacts of tariffs and implementing options to mitigate any adverse effects on its operations and financial performance[69]. - Climate change regulations may impose new requirements that could affect profitability and operating margins, with potential compliance costs impacting competitiveness[74]. - Changes in interest rates, influenced by inflation management efforts, could have direct and indirect adverse impacts on the company's business[83]. - The company may face difficulties in integrating acquired businesses, which could adversely affect financial results and operational performance[96]. - Regulatory changes could lead to increased compliance costs and affect product development and sales[112]. - Environmental regulations may impact demand for products, particularly those that are environmentally friendly[113]. - Compliance with environmental laws may result in substantial costs and operational changes, including potential fines and remediation expenses[115]. - The company is subject to anti-corruption laws, including the U.S. Foreign Corrupt Practices Act, with non-compliance potentially leading to significant penalties[117]. - The company maintains a compliance program for anti-corruption and trade control laws, but risks of non-compliance remain[119]. Market Conditions - Seasonal sales patterns are observed in the HVAC/R market, with revenue peaks during spring and summer months[26]. - The HVAC/R market represented approximately 56% of net revenues in the year ended March 31, 2025, indicating its significance to the company's overall performance[169]. - The company expects year-over-year growth in revenue and profit across all segments for fiscal year 2026 despite macroeconomic uncertainties[177]. Corporate Governance and Compliance - Effective internal controls are necessary for reliable financial reporting and fraud prevention, with potential harm to reputation and operating results if not maintained[111]. - The company is subject to restrictive covenants in its debt agreements, limiting operational flexibility and financial planning[102]. - The company has a reserve of $14.7 million related to uncertain tax positions as of March 31, 2025, highlighting potential tax liabilities[109]. - The company had approximately 2,600 full-time employees as of March 31, 2025, with 1,400 located in Vietnam, indicating a significant reliance on international labor[93]. - As of March 31, 2025, the company recorded goodwill of $264.1 million on its consolidated balance sheet, which is subject to annual evaluation for impairment[101]. Shareholder Information - As of May 19, 2025, there were 283 holders of record for the Company's common stock[151]. - The Company has a share repurchase program with a maximum dollar value of $196.4 million remaining as of the end of March 2025[154]. - The Company reported a total of 21,851 shares repurchased during the quarter ended March 31, 2025, at an average price of $293.19 per share[154].

Debt and Financial Flexibility - The company incurred substantial indebtedness under the 2023 Credit Agreement, which could adversely affect its financial flexibility and competitive position [252]. - The company fully repaid all outstanding obligations under the term loan of the 2023 Credit Agreement during the fiscal year ended March 31, 2025 [252]. - The company's indebtedness increases the risk of insufficient cash flow to meet debt obligations, potentially limiting operational flexibility and growth opportunities [254]. - The 2023 Credit Agreement contains restrictive covenants that may limit the company's ability to engage in activities beneficial for long-term interests [253]. - The ability to refinance indebtedness will depend on capital market conditions and the company's financial health at the time [262]. Capital and Stockholder Considerations - The company does not intend to pay cash dividends on its common stock in the near term, focusing instead on retaining funds for business operations and expansion [259]. - The company may raise additional capital, which could dilute existing common stock holders and adversely affect the market price of its common stock [257]. - The market price of the company's Class A common stock has been highly volatile, influenced by various external factors beyond its control [264]. - The company faces risks related to potential class action litigation due to stock price volatility, which could harm its financial condition [266]. - The company's multi-class share structure may limit its attractiveness to certain investors and affect its market price [268]. Revenue and Customer Dynamics - The company experienced significant growth, with top five largest customers contributing 32.0% of total revenue in fiscal year 2025, down from 41.1% in 2024 [406]. - Customer A accounted for 17.4% of total revenue in fiscal year 2023, while Customer G contributed 17.0% in 2024 [406]. Operational Risks and Challenges - The company is exposed to commodity price risk, particularly from fluctuating steel prices, which could adversely affect operating margins if increases cannot be passed on to customers [409]. - Logistics costs have increased due to global shipping disruptions, potentially affecting project delivery timing and profitability [410]. - The company may face challenges in managing future growth effectively, which could impact customer service and operational quality [280]. - Retaining key personnel is critical for the company's growth, as competition for skilled individuals is intense [282]. - Future acquisitions may pose integration challenges and could dilute stockholder value if not managed properly [284]. Currency and Tax Considerations - The company has established a foreign currency risk management policy to mitigate exposure to exchange rate fluctuations [411]. - A 10% appreciation or depreciation of the U.S. dollar is not expected to materially affect the company's financial position or results in the near term [412]. - The company is restricted by the Tax Matters Agreement from taking certain actions that could adversely affect tax treatment related to the Spin Distribution or the Merger [278].

Financial Projections - For the quarter ended March 31, 2025, the Company expects Time Charter Equivalent (TCE) revenues to be between $73,100,000 and $75,100,000[4] - The Company anticipates operating vessel expenses to be between $22,900,000 and $24,900,000[4] - General and administrative expenses (excluding stock-based compensation) are expected to be between $7,800,000 and $11,300,000[4] - Stock-based compensation is projected to be between $1,350,000 and $1,550,000[4] - Long-term debt obligations are estimated to be between $317,900,000 and $558,400,000[4] Financial Results - Revenues for the three months ended March 31, 2025, are reported at $75,900,000, with voyage expenses of $1,800,000, resulting in TCE revenues of $74,100,000[9] - The Company reported cash and cash equivalents of $315,900,000 as of March 31, 2025[4] Company Operations - The Company operates a fleet of twenty-five Very Large Gas Carriers (VLGCs), including twenty ECO VLGCs and four dual-fuel ECO VLGCs[10] Conference Call - The earnings conference call to discuss the results is scheduled for May 22, 2025, at 10:00 a.m. ET[2] Financial Data Disclaimer - The Company emphasizes that the provided financial data is preliminary and subject to adjustments that may be material[5]

Financial Performance - Revenues for Q4 FY 2025 were $232 million, a 12% increase from $207 million in Q4 FY 2024[6] - Earnings per share for Q4 FY 2025 were $0.51, up 38% from $0.37 in the same quarter of the prior year[6] - Fiscal year revenues reached $896 million, a 12.7% increase from $795 million in FY 2024[1] - Net income for FY 2025 was $95.2 million, compared to $76.3 million in FY 2024[8] Profitability and Margins - Gross profit for Q4 FY 2025 increased 34% to $58 million, with a gross margin of 25%[6] Cash and Assets - The company exited the quarter with $171 million in cash and cash equivalents, with no borrowings[6] - Total assets as of March 31, 2025, were $546 million, up from $455 million in the previous year[9] Strategic Initiatives - CorVel's AI integration is enhancing communication platforms and medical billing practices, improving efficiency and reducing costs[3] - The health market saw the successful launch of CERIS's first customer and a second partnership agreement, aligning with the company's long-term strategy[4] Shareholder Actions - The company repurchased $9 million of common stock during the quarter[6]

Financial Performance - WidePoint Corporation reported total revenues of approximately $142.6 million for the full year 2024, a 35% increase compared to $106 million in 2023[22]. - The company achieved $2.6 million in adjusted EBITDA for the year, reflecting a robust 229% increase over the prior year[28]. - Free cash flow for 2024 was $2.5 million, a significant improvement from negative free cash flow of approximately $300,000 in 2023, representing a 933% increase[29]. - The carrier services revenue for the fourth quarter was $24.6 million, an increase of $8.9 million compared to the same period in 2023[23]. - Full-year net loss improved by $2.1 million to $1.9 million or a loss of $0.21 per share, compared to a net loss of $4 million or a loss of $0.46 per share in the previous year[30]. - Net loss for Q4 improved to $356,000 or a loss of $0.04 per share, compared to a net loss of $1.3 million or a loss of $0.15 per share for the same period last year[30]. - Cash balance at year-end was $6.8 million, consistent with the end of 2023, with a revolving line of credit providing $4 million of potential borrowing capacity[31]. Contract and Backlog - WidePoint secured $51.2 million in total contract value for the year, with $45.6 million awarded by federal agencies[8]. - As of December 31, 2024, WidePoint's contract backlog stood at approximately $290 million, excluding a recent $25 million task order award[14]. - Anticipated task order award under the Spiral 4 contract totals $25 million over a 10-year period, indicating continued government spending despite budget cuts[33]. - The Spiral 4 contract is expected to generate an additional $2.5 million annually, contributing positively to the company's revenue[63]. - The company ended 2024 with a contract backlog of approximately $290 million, providing a strong revenue outlook for 2025[63]. Operational Efficiency - General and administrative expenses for the year were $17.6 million, or 12% of revenue, compared to 15% in 2023, indicating improved operational efficiency[27]. - Sales and marketing expenses for the year were $2.3 million, remaining constant as a percentage of revenues at 2%[26]. Product Development and Market Strategy - The company launched two new solutions in 2024: MobileAnchor and M365 Analyzer, aimed at enhancing security and providing actionable insights for clients[10]. - Focus on commercialization of new solutions, particularly MobileAnchor and M365 Analyzer, to capture mobile digital credential market share[37]. - New products such as the M365 Analyzer and MobileAnchor are expected to meet significant market demand, enhancing revenue potential[63]. Future Outlook - Company aims to expand strategic relationships and grow contract backlog, with a focus on the MobileAnchor solution expected to be fully commercialized in 2025[35]. - Goal to deliver positive earnings per share for the full year 2025, driven by technological innovations and strong performance across business lines[38]. - Guidance for 2025 will be provided after Q1, with expectations for double-digit percentage growth in top line and similar growth in EBITDA and cash flow[58]. - The company plans to provide confident guidance during the Q1 call, indicating a positive outlook despite macroeconomic uncertainties[62]. - The company is optimistic about capturing additional work from the DOGE project, which is anticipated to be a tailwind for growth[63]. Compliance and Authorization - The company achieved FedRAMP authorized status for its Intelligent Technology Management System (ITMS), enhancing its market position and access to federal contracts[11]. - Preparing for the DHS CWMS 3.0 recompete, with a proposal team formed to address anticipated RFP requirements[36].

Acquisitions and Investments - The company acquired approximately 60.5% of Simson-Maxwell for $7,958,159, enhancing its custom energy solutions capabilities[194] - The company holds a 51% interest in Viking Ozone, which has developed a patented medical waste treatment system using ozone technology[198] - The company has acquired a 51% interest in Viking Sentinel and Viking Protection, focusing on electric transmission line protection technologies[199] - Camber Energy completed a merger with Viking Energy Group, with Viking becoming a wholly-owned subsidiary of Camber[202] - Approximately 49,290,152 shares of Camber Common Stock were issued, representing about 59.99% of the outstanding shares post-merger[209] Financial Performance - The company reported gross revenues of $6,229,335 for the three months ended March 31, 2025, a decrease of 7% from $6,690,880 in the same period of 2024[220] - Operating expenses decreased by $939,334 to $8,010,107 for the three months ended March 31, 2025, compared to $8,949,441 in the prior year[222] - The net loss for the three months ended March 31, 2025, was $(3,191,653), significantly improved from a net loss of $(26,618,215) in the same period of 2024[225] - The company had a working capital deficit of $(19,821,650) as of March 31, 2025, compared to $(14,512,332) in the prior year[216] - Net cash provided by operating activities was $241,960 for the three months ended March 31, 2025, compared to $(1,185,014) in the same period of 2024[217] - The company had long-term debt of $41,276,474 and a stockholders' deficit of $(40,927,038) as of March 31, 2025[213] Legal Matters - The Company is involved in a legal proceeding regarding a merger-related class action complaint, which was dismissed with prejudice on March 31, 2025[250] - The Company is facing a lawsuit from Maranatha Oil Co. seeking approximately $100,000 for alleged unpaid royalties and other claims[251] - The Company has not reported any pending or threatened lawsuits that could materially affect its operations, aside from the mentioned litigation[249] Internal Controls and Governance - The Company has identified material weaknesses in its internal control over financial reporting and is addressing these by hiring additional staff and seeking expert assistance[246] - As of March 31, 2025, the Company does not maintain effective disclosure controls and procedures, as concluded by the Chief Executive Officer[245] - The Company is committed to ongoing evaluation and enhancement of its internal controls as funds allow[246] Energy and Sustainability Initiatives - The ESG Clean Energy System aims to capture approximately 100% of CO2 emissions from internal combustion engines, facilitating the production of certain commodities[196] - The company is exploring other energy-related opportunities that are currently generating revenue or have a reasonable prospect of doing so[192] - The company has entered into multiple patent agreements related to clean energy and carbon capture technologies, with several patents issued and pending[195] - The company intends to utilize the ESG Clean Energy System through existing distribution channels and for its own operations[197] - The company has a focus on sustainable alternatives for medical waste disposal, positioning itself in the renewable energy sector[198] - The company is committed to enhancing public safety through its broken conductor protection systems, which are integral to grid stability initiatives[199] Financial Instruments - The Series C Preferred Stock has a fixed conversion rate of $162.50, with a Conversion Premium that may be paid in cash or shares[238] - The fair value of the derivative liability related to the Conversion Premium is equal to the cash required to settle it[241] - The Company has determined that the Series C Preferred Stock contains an embedded derivative liability related to the Conversion Premium[240] - The Measurement Period for the Series C Preferred Stock conversion is typically 30 trading days, extendable under certain conditions[238] Future Outlook - Management believes the company may continue to develop new opportunities and obtain additional funding, although there is no assurance of funding availability[214]

Customer Base and Market Position - LiveRamp serves a global customer base with over 840 direct customers and thousands of additional customers through reseller partnerships[38] - The company works with more than 500 of the largest brands and agencies, enhancing their ability to execute people-based marketing across various digital platforms[38] - As of March 31, 2025, the company had 840 direct customers, with 128 customers having subscription contracts exceeding $1 million in annual revenue[49][50] - The company’s ten largest customers accounted for approximately 25% of total revenues during the twelve months ended March 31, 2025[51] - The company received approximately 5% of its revenues from business outside the United States during the twelve months ended March 31, 2025[91] Revenue and Financial Performance - Approximately 76% of the company's revenue is derived from subscription-based arrangements sold on an annual or multi-year basis[59] - Services revenue accounts for less than 5% of total company revenue, primarily generated from project fees paid by subscribers[41] - LiveRamp generated revenue primarily from subscription fees, marketplace revenue-sharing fees, and professional services fees[212] - The company’s ten largest customers accounted for approximately 25% of revenues for the twelve months ended March 31, 2025[80] - The report indicates a significant increase in total revenue compared to the previous fiscal year, with specific figures detailed in the financial statements[193] Technology and Data Solutions - LiveRamp's Data Marketplace connects over 200 data providers, enabling seamless monetization of audience data across hundreds of marketing platforms[39] - LiveRamp's identity resolution technology offers unparalleled accuracy, enabling organizations to create a single view of the customer while protecting consumer privacy[34] - The platform supports advanced measurement and analytics through clean room technology, enhancing insight-driven innovation[35] - LiveRamp's technology helps reduce marketing waste by improving consumer identification and enabling better attribution of marketing spend[29] - LiveRamp's platform enables organizations to unify customer data across 500 partners, enhancing marketing effectiveness[213] Subscription and Pricing Model - The platform's subscription pricing is primarily based on data volume, which includes data input records and connection points[37] - Usage-based subscription revenue represented 15% of total subscription revenue for the twelve months ended March 31, 2025, consistent with the previous year[56] Growth Strategy and Market Expansion - The company aims to expand its global footprint, investing in select regions in Europe and APAC to serve existing customers[48] - The company is focused on increasing the density of its collaboration network by adding more data owner nodes to enhance advertising effectiveness measurement[43] - Future outlook suggests continued market expansion and potential acquisitions to drive growth in the upcoming fiscal year[204] Regulatory and Compliance Challenges - The company is positioned to address heightened privacy and security concerns, complying with regulations like GDPR and CCPA[30] - The regulatory framework for data privacy is evolving, with potential federal data privacy laws being discussed in the U.S.[112] - The proposed ePrivacy Regulation in the EU may require "opt-in" consent for cookie data, with significant fines for non-compliance[108] - Increased scrutiny on interest-based advertising practices may lead to regulatory changes that could impact data collection and usage[113] - The company must monitor ongoing developments in data privacy regulations to adapt its business practices accordingly[113] Competition and Market Risks - The company faces substantial competition, which could lead to decreased market share and necessitate price reductions, adversely affecting revenues and operating margins[82] - The company relies on third-party data suppliers, and any withdrawal or limitation of data could materially impact its ability to provide products and services, resulting in decreased revenues[81] Internal Governance and Management - The company’s growth strategy is contingent upon maintaining its corporate culture, which is essential for innovation and employee retention[85] - The company’s Chief Financial Officer has been in position since April 2023, overseeing finance and investor relations functions[70] - The Chief Technology Officer has extensive experience in engineering leadership and product innovation, crucial for the company’s technological advancements[72] Financial Management and Shareholder Returns - The company has not paid dividends on its common stock in the twelve months ended March 31, 2025, and has no short-term plans to do so[144] - LiveRamp's cumulative total shareholder return was 79.40% as of March 31, 2025, compared to 186.46% for the Russell 2000 index over the same period[148] - The board of directors adopted a modified common stock repurchase program allowing for up to $1.3 billion in repurchases through December 31, 2026[151] Cybersecurity and Risk Management - The company maintains a security program aligned with industry standards such as NIST CSF and ISO 27001 to mitigate cybersecurity risks[128] - LiveRamp's security program is overseen by the Board, with annual reports on enterprise risks, including cybersecurity[129] - The company engages external auditors annually to assess its security posture and compliance with standards like SOC 2 and ISO 27001[136] - The company has a third-party risk management program to evaluate the security controls of third parties with access to sensitive data[137] Operational Challenges - The company relies on third-party data center providers, and any interruptions in their services could impair the delivery of products and services, resulting in customer dissatisfaction and revenue loss[101] - The company incurs significant costs with third-party data hosting services, and any increase in these costs could negatively impact operating results[103] - Public health emergencies, such as the COVID-19 pandemic, could lead to economic uncertainty and significantly disrupt the company's operations and financial condition[94] Employee and Talent Management - The company must attract and retain qualified personnel to execute its business strategy, with competition for skilled employees increasing in the technology sector[83] - The company has made strategic amendments to its equity compensation plans, enhancing employee incentives and retention strategies[198] Financial Reporting and Internal Controls - The company assessed the effectiveness of its internal control over financial reporting as of March 31, 2025, and determined it was effective[167] - There were no changes in internal control over financial reporting that materially affected the company during the three months ended March 31, 2025[168]