Financial Performance - Net sales for the first quarter of fiscal 2026 decreased 4% to $583.6 million compared to $609.7 million in the prior year's quarter[5] - Net income for the first quarter was $7.8 million, or $0.17 per diluted share, compared to $5.8 million, or $0.12 per diluted share, in the prior year's quarter[5] - Non-GAAP net income per diluted share was $0.19 for the first quarter, up from $0.12 in the same period last year, excluding one-time severance expenses of $1.0 million[6] - Net income for the second quarter is projected to be between $1.0 million and $6.0 million, significantly lower than $24.2 million in the prior year's second quarter[15] - Forecasted net income for the three months ending July 31, 2025, is projected to be between $1,000,000 and $6,000,000, compared to actual net income of $24,212,000 for the same period in 2024[30] Guidance and Projections - The company reaffirmed its net sales guidance for fiscal 2026, expecting approximately $3.14 billion in net sales, down from $3.18 billion in fiscal 2025[13] - For the second quarter of fiscal 2026, net sales are expected to be approximately $570.0 million, down from $644.8 million in the prior year's second quarter[14] Debt and Expenses - Total debt decreased 96% to $18.7 million from $426.4 million last year, following the redemption of $400.0 million in senior secured notes[9] - The company anticipates an additional expense of approximately $135.0 million due to tariffs, primarily impacting the second half of the fiscal year[11] - The company incurred one-time warehouse-related severance expenses of $978,000 in the current quarter[28] Inventory and Financial Metrics - Inventories decreased 5% to $456.5 million compared to $479.7 million last year[7] - Adjusted EBITDA for the three months ended April 30, 2025, was $19,489,000, down from $22,299,000 in the prior year, reflecting a decrease of 12.2%[28] - The company reported a significant reduction in interest and financing charges, net, from $5,424,000 in the prior year to $461,000 in the current quarter[28] - Income tax expense increased to $3,718,000 for the three months ended April 30, 2025, compared to $2,305,000 in the same period last year, marking a rise of 61.5%[28] Non-GAAP Measures - The company emphasizes the importance of non-GAAP financial measures to provide a clearer picture of operational performance, excluding items not indicative of core business results[30] - Management believes that the non-GAAP measures are useful for investors to assess performance across historical periods and compare with competitors[30] Share Repurchases - Share repurchases totaled $19.7 million for 807,437 shares in the first quarter[10] Strategic Focus - The company is focused on strategic adjustments and operational efficiency to enhance profitability moving forward[28]

Financial Performance - Net Income for Q1 2025 was $9.3 million, or $0.34 per diluted share, down from $17.3 million, or $0.63 per diluted share in Q1 2024[69] - Net Sales declined 7.5% in Q1 2025 compared to Q1 2024, with a 10.0% decline at the Shoe Carnival banner, while Shoe Station saw a 4.9% increase[70] - Comparable stores Net Sales decreased by 8.1%, primarily due to declines at the Shoe Carnival banner, partially offset by increases at Shoe Station[70] - Gross profit margin for Q1 2025 was 34.5%, down from 35.6% in Q1 2024, while Cost of Sales increased to 65.5% of Net Sales[68] - Operating Income for Q1 2025 was 4.3%, a decrease from 7.5% in Q1 2024, reflecting the impact of the rebanner strategy and industry headwinds[68] - Net Sales for Q1 2025 were $277.7 million, a decrease of $22.7 million or 7.5% compared to Q1 2024, primarily due to a 10.0% decline in the Shoe Carnival banner[78] - Gross Profit for Q1 2025 was $95.8 million, down $11.0 million from Q1 2024, with a gross profit margin of 34.5% compared to 35.6% in Q1 2024[79] - SG&A expenses decreased slightly to $83.8 million in Q1 2025, but as a percentage of Net Sales, they increased to 30.2% from 28.1% in Q1 2024[80] - Net cash used in operating activities was $9.6 million in Q1 2025, compared to net cash provided of $17.1 million in Q1 2024, driven by inventory purchase timing and lower earnings[84] Store Strategy and Capital Expenditures - The company plans to rebanner approximately 120 stores, or 28% of its current fleet, to Shoe Station by the end of Fiscal 2025, up from a previous goal of 51%[72] - The rebanner strategy is expected to reduce annual Operating Income by $20 to $25 million due to various associated costs[73] - Capital expenditures for the rebanner initiative are projected to be between $30 to $40 million in Fiscal 2025, with $10.3 million incurred in Q1 2025[75] - Capital expenditures for Fiscal 2025 are expected to be between $45 million and $60 million, with significant allocations for store rebanners and upgrades to the distribution center[96] - The company plans to rebanner over 50 additional Shoe Carnival stores into Shoe Station stores by March 2027, aiming for over 80% of the store fleet to operate as Shoe Station stores[97] Financial Position and Shareholder Returns - The company ended Q1 2025 with approximately $93.0 million in Cash, Cash Equivalents, and Marketable Securities, and $99.0 million available under its credit facility[76] - Working capital increased to $399.0 million at May 3, 2025, up from $355.8 million at May 4, 2024, primarily due to a higher cash balance and increased merchandise inventories[85] - The Board of Directors approved an 11.1% increase in the quarterly cash dividend to $0.15 per share, with $4.4 million returned to shareholders in Q1 2025[98] - The company has a $100 million Credit Agreement, with compliance on covenants as of May 3, 2025, allowing for dividends and share repurchases under certain conditions[91] - No share repurchases have been made in Fiscal 2025 to date, with the share repurchase program authorized for up to $50 million effective January 1, 2025[99] Inventory Management - Merchandise Inventories increased approximately 4% at the end of Q1 2025 compared to Q1 2024, with inventory purchased in advance of tariff increases[77]

Revenue and Income - Revenue increased by 4.6% to $2.1 billion, with organic growth contributing 3.8%[6] - Net income for the quarter was $42.2 million, or $0.67 per diluted share, compared to $43.8 million, or $0.69 per diluted share in the prior year[8] - Adjusted net income grew to $54.1 million, or $0.86 per diluted share, compared to $52.3 million, or $0.82 per diluted share last year[9] - Operating profit for the same period rose by 1.2% to $82.3 million, up from $81.3 million[32] - Net income decreased by 3.7% to $42.2 million, compared to $43.8 million in the prior year[32] - Basic net income per share fell by 2.9% to $0.67 from $0.69[26] - Net income for the six months ended April 30, 2025, decreased by 3.0% to $85.8 million from $88.4 million in 2024[33] - Adjusted net income for the six months ended April 30, 2025, was $109.4 million, an increase from $103.3 million in 2024[34] Earnings and Adjusted Metrics - Adjusted EBITDA for the period increased to $125.9 million, with an adjusted EBITDA margin of 6.2%[9] - Adjusted EBITDA for the six months ended April 30, 2025, was $246.6 million, compared to $232.3 million in 2024, reflecting a solid operational performance[34] - The company reaffirms its full year adjusted EPS outlook of $3.65 to $3.80[14] Cash Flow and Financial Position - Cash flow from operations increased by $138.5 million compared to the previous quarter, highlighting progress in ERP system deployment[11] - Net cash provided by operating activities for the three months ended April 30, 2025, was $32.3 million, a significant decrease from $117.0 million in 2024[29] - Free cash flow for the six months ended April 30, 2025, was $(107.8) million, a decrease from $87.7 million in 2024, indicating cash flow challenges[36] - Total current assets increased to $2,014.1 million from $1,788.7 million, reflecting a growth of 12.6%[31] - Total liabilities rose to $3,486.3 million, up from $3,315.2 million, indicating an increase of 5.2%[31] - Total indebtedness stood at $1.6 billion, resulting in a total leverage ratio of 2.9X[12] Segment Performance - The Business & Industry segment grew by 3%, supported by recovery in the U.S. prime office space market[7] - ATS revenue increased by 19%, benefiting from significantly higher microgrid revenue[7] - The Technical Solutions segment saw a revenue increase of 19.3% to $210.2 million compared to $176.2 million in the previous year[32] - The Technical Solutions segment experienced the highest revenue growth of 20.5%, reaching $412.4 million, compared to $342.1 million in the previous year[33] - The company reported an increase in aviation revenue by 8.7%, reaching $530.2 million compared to $487.8 million in 2024[33] Dividends and Expenses - Dividends declared per common share increased to $0.265 from $0.225, representing an increase of 17.8%[26] - Interest expense decreased by 16.1% to $23.9 million from $20.6 million, reflecting improved cost management[32] - The company incurred $33.0 million in items impacting comparability for the six months ended April 30, 2025, up from $21.1 million in 2024[34]

Financial Performance and Guidance - The Group's guidance for Adjusted EBITDAaL and Adjusted free cash flow for the financial year ending March 31, 2026, is anticipated to show improvement[51] - Vodafone reported a total service revenue of €45.2 billion for the financial year ended March 31, 2025, representing a year-on-year growth of 3.5%[2064] - The company achieved a mobile service revenue growth of 4.2%, driven by an increase in customer base and data usage[2064] - Vodafone's new product launches in the IoT space are projected to generate an additional €500 million in revenue by the end of the next fiscal year[2064] Strategic Initiatives and Investments - The potential acquisition of Telekom Romania is part of the Group's strategy to expand its market presence in Eastern Europe[51] - The Group plans to invest in new technologies, including artificial intelligence, to enhance service offerings and operational capabilities[51] - Vodafone plans to invest €1.5 billion in next-generation network infrastructure to support increased demand for mobile broadband services[2064] - The company is actively pursuing strategic partnerships and acquisitions to bolster its service offerings and market reach, with a focus on IoT and digital services[2064] Market Expansion and Customer Focus - Expectations regarding customer usage trends indicate a focus on increasing average revenue per user (ARPU) amidst competitive pressures[51] - Vodafone is focusing on expanding its market presence in emerging markets, with a target of increasing revenue contribution from these regions by 10% over the next two years[2064] - Vodafone's penetration rate exceeded 100% in several markets, reflecting a high number of SIMs relative to the population[2064] - Vodafone's net promoter score (NPS) improved by 5 percentage points, indicating enhanced customer satisfaction and loyalty[2064] Operational Efficiency and Cost Management - The Group's share buyback program is aimed at returning value to shareholders and optimizing capital structure[51] - Vodafone has initiated a restructuring plan expected to reduce operating expenses by €300 million annually, enhancing overall efficiency[2064] - The Group is facing macroeconomic pressures that may impact customer retention and spending patterns[51] - The ability to secure timely delivery of high-quality products from suppliers remains a critical factor for operational success[52] Governance and Leadership Changes - Simon Segars was appointed as Chair of the Technology Committee on August 16, 2023, indicating a focus on technological advancements[2067] - David Nish was appointed as Senior Independent Director on August 16, 2023, which may enhance governance and oversight[2067] - The company plans to increase fees for committee chairs, reflecting a commitment to attract and retain top talent in leadership roles[2067] - The company is focused on enhancing its governance structure with the appointment of new directors and committee chairs[2067] Partnerships and Collaborations - The mobile network sharing agreement with Virgin Media O2 is expected to enhance operational efficiency and market reach[51] - Vodafone established a co-control partnership for Vantage Towers AG with a consortium of long-term infrastructure investors led by Global Infrastructure Partners and KKR on March 22, 2023[2068] - The Shareholders' Agreement dated March 22, 2023, outlines the ongoing relationship with Emirates Telecommunications Group Company PJSC, suggesting potential strategic collaborations[2068] - Vodafone's strategic moves indicate a commitment to market expansion and operational efficiency through partnerships and mergers[2068] Sustainability Initiatives - The company has committed to sustainability initiatives, including reforestation projects that offset 285,577 pages of paper consumption, aligning with its environmental goals[2061]

Financial Performance - Net sales decreased to $115.8 million, down 14% from $135.1 million in Q1 2024[3] - Adjusted EBITDA fell to $3.0 million, a decline of 81% compared to $15.5 million in the same quarter last year[3] - Net loss per share was $(0.30), compared to earnings of $0.06 per share in Q1 2024[3] - Gross profit declined to $30.2 million, down 29% from $42.4 million in Q1 2024, with a gross margin of 26%[14] - Net income for Q1 2025 was reported at $(8,462) million, a decrease from $1,552 million in Q1 2024[18] - Adjusted EBITDA for Q1 2025 was $2,973 million, down from $15,516 million in Q1 2024, indicating a significant decline[18] Operating Expenses and Costs - Operating expenses decreased by 5% on a GAAP basis and by 14% excluding transformation expenses and a non-recurring item[3] - Interest expense, net, increased to $3,765 million in Q1 2025 from $3,693 million in Q1 2024[18] - Depreciation and amortization expenses decreased to $4,749 million in Q1 2025 from $5,630 million in Q1 2024[18] - Stock compensation expenses decreased significantly to $559 million in Q1 2025 from $2,005 million in Q1 2024[18] - Transformation costs rose to $2,191 million in Q1 2025, compared to $1,152 million in Q1 2024, indicating increased investment in restructuring[18] Debt and Working Capital - Net working capital reduced by $85 million year-over-year, from $238 million to $153 million[4] - Total debt decreased from $187 million to $167 million year-over-year[4] Future Outlook - The company anticipates a stronger second half of 2025 due to improving customer order rates and operational improvements[2] - The agricultural sector is expected to recover, with management focusing on cost reduction initiatives if market conditions do not improve[2] - The company aims to simplify operations to enhance future margins and reaffirm its position in the agricultural solutions market[4] Tax and Other Provisions - Provision for income taxes in Q1 2025 was $387 million, compared to $1,484 million in Q1 2024[18] - Dacthal returns were reported at $(216) million in Q1 2025, with no comparable figure in Q1 2024[18]

Financial Performance - The company's net sales for Q1 2025 decreased by 14% to $115,800, down from $135,143 in Q1 2024[69] - Gross profit for Q1 2025 was $30,191, a decline of 29% compared to $42,418 in Q1 2024, resulting in a gross margin of 26%[72] - The company recorded a net loss of $8,462, or $0.30 per share, compared to a net income of $1,552, or $0.06 per share, in the prior year[78] - Total cost of sales decreased by 8% to $85,609 in Q1 2025, primarily driven by a decline in sales volume[69] - Net loss for Q1 2025 was $8,462 or $0.30 per share, compared to net income of $1,552 or $0.06 per share in Q1 2024[78] Sales and Revenue - Domestic crop sales fell by 15% to $57,176, while international sales also decreased by 14% to $43,023[69] - In Q1 2025, the Company reported net sales of $115,800, a decrease of 14% compared to $135,143 in Q1 2024[69] Expenses - Operating expenses decreased by 5% to $34,501, with selling expenses down 17% to $10,723[73][76] - Interest expense remained flat at $3,765, with an average debt of $183,918 and an effective interest rate of 8.2%[74] - The income tax expense for Q1 2025 was $387, significantly lower than $1,484 in Q1 2024, due to losses incurred in the U.S.[68][75] - Selling expenses decreased by $2,158 in Q1 2025, driven by reductions in domestic wages, travel expenses, and advertising costs[76] Cash Flow - Cash used in operating activities was $20,576, compared to $36,107 in the same period last year[79] - Cash used for investing activities was $446 in Q1 2025, significantly lower than $3,567 in Q1 2024, with $431 spent on fixed asset acquisitions[82] - Financing activities provided $19,801 in Q1 2025, down from $41,382 in the same period last year, with net borrowings under the Credit Agreement amounting to $20,167[83] Debt and Indebtedness - Long-term indebtedness increased to $166,272 as of March 31, 2025, from $145,800 at the end of 2024[84] - Average overall debt increased to $183,918 in Q1 2025 from $176,344 in Q1 2024, with interest expense remaining flat at $3,765 compared to $3,693[74] - The Company had the capacity to increase borrowings by up to $53,717 as of March 31, 2025, compared to $28,623 available as of December 31, 2024[85] Transformation and Strategy - The company plans to focus on selling more profitable products internationally, leading to improved average pricing across categories[71] - Transformation costs related to digital and structural initiatives amounted to $2,191, up from $1,152 in the prior period[76] - Transformation costs related to digital and structural transformation amounted to $2,191 in Q1 2025, up from $1,152 in the prior period[76] Working Capital - Customer prepayments decreased by $28,215 in Q1 2025, compared to a decrease of $37,037 in the same period of 2024[80] - Net working capital increased by $18,240 in Q1 2025, compared to an increase of $49,996 in the same period of the prior year[80]

Revenue and Financial Performance - Cycurion's revenues from SLG for the fiscal years 2024 and 2023 were $14,703,887 and $13,837,042, respectively, indicating a year-over-year increase of approximately 6.3%[267]. - Revenue for the three months ended March 31, 2025, was $3,870,050, a decrease of $372,805 or 8.79% compared to $4,242,855 in the same period of 2024[283]. - Cost of revenue decreased by $703,854 or 18.07% to $3,192,287 for the three months ended March 31, 2025, from $3,896,141 in 2024[286]. - Selling, general and administrative expenses surged to $10,775,268 for the three months ended March 31, 2025, reflecting an increase of $10,396,291 or 2743.25% compared to $378,977 in 2024, attributed to merger and acquisition efforts[288]. - Net cash used in operating activities was $2,745,109 for the three months ended March 31, 2025, compared to $272,446 in the same period of 2024[291]. - Cash and cash equivalents at the end of the period increased to $2,269,195 as of March 31, 2025, up from $206,939 at the end of March 2024[291]. - The accumulated deficit increased to approximately $13,461,859 as of March 31, 2025, compared to $3,203,361 at December 31, 2024[297]. - The company expects continued significant operating losses for the next few years, with unrestricted cash of approximately $2.3 million as of March 31, 2025[298]. - The total assets increased to approximately $31.6 million as of March 31, 2025, from approximately $25.6 million at December 31, 2024, primarily due to increases in goodwill[298]. Strategic Acquisitions and Growth - The acquisition of Sabres' technology assets, including Multi-Dimensional Protection, Web Application Firewall, and Bot Mitigation SaaS platforms, was completed on September 30, 2021, enhancing Cycurion's service offerings[277]. - Cycurion plans to close the transactions contemplated by the SLG Term Sheet during the current fiscal quarter, which would allow the company to leverage SLG's historical relationships with government agencies for future contracts[269]. - The SLG Innovation subsidiary now represents a majority of Cycurion's revenues, highlighting the importance of this acquisition in driving growth[266]. - Cycurion's growth strategy includes organic business solutions and strategic acquisitions of cyber/infrastructure service providers, positioning the company for continued expansion in the cybersecurity market[257]. - The SLG Term Sheet allows for the potential acquisition of SLG, which would provide Cycurion with valuable past performance qualifications for bidding on new government contracts[267]. - The RCR Term Sheet, related to the acquisition of SLG's accounts receivable, is expected to be closed in the second half of the current fiscal year, contingent upon the SLG transaction[273]. - Cycurion's subsidiaries, including Axxum Technologies and Cloudburst Security, have established a strong presence in federal government contracts, contributing to the company's revenue growth[259][261]. Technology and Innovation - The Cycurion Security Platform utilizes a proprietary cloud-based AI algorithm that evolves to counter new threats, enhancing the effectiveness of its cybersecurity solutions[278]. - The integration of Sabres' SaaS platforms into Cycurion's offerings aims to improve clients' cyber posture and reduce risks associated with cyber threats[278]. Financing and Market Considerations - The company intends to continue seeking additional debt or equity financing to support operations until it can generate sufficient cash flow[299]. - The fair value of the Common Stock was estimated due to its lack of historical public trading[316]. - The expected term for options is calculated to be 10 years based on the average vesting term and contractual period[316]. - Expected volatility is derived from the historical share volatility of comparable publicly traded companies[316]. - The risk-free interest rate is based on U.S. Treasury securities yields appropriate for the term of the award[316]. - The company has not paid dividends on its Common Stock and does not expect to in the foreseeable future[316]. - The assessment includes contemporaneous third-party valuations of the Common Stock[316]. - The analysis considers the likelihood of achieving a liquidity event, such as an IPO or sale of the company[316]. - Market performance of comparable publicly traded companies is taken into account[316]. - The company is classified as a "smaller reporting company" and is not required to provide additional market risk disclosures[317].

Financial Performance - Revenues from SLG for the fiscal years 2024 and 2023 were $14,703,887 and $13,837,042, respectively, indicating a year-over-year growth of approximately 6.3%[267] - Revenue for the three months ended March 31, 2025, was $3,870,050, a decrease of $372,805 or 8.79% compared to $4,242,855 in the same period of 2024[283] - Cost of revenue decreased by $703,854 or 18.07% to $3,192,287 for the three months ended March 31, 2025, from $3,896,141 in 2024[286] - Selling, general and administrative expenses increased significantly by $10,396,291 or 2743.25% to $10,775,268 for the three months ended March 31, 2025, compared to $378,977 in 2024[288] - Net loss for the three months ended March 31, 2025, was $10,248,486, compared to a net loss of $312,475 in the same period of 2024[282] - Cash and cash equivalents at the end of the period increased to $2,269,195 as of March 31, 2025, from $206,939 at the end of March 2024[291] - The accumulated deficit increased to approximately $13,461,859 as of March 31, 2025, from $3,203,361 at December 31, 2024[297] - Net cash used in operating activities was $2,745,109 for the three months ended March 31, 2025, compared to $272,446 in the same period of 2024[292] - Net cash provided by financing activities was $3,173,991 for the three months ended March 31, 2025, compared to a net cash used of $23,483 in 2024[296] - The company expects continued significant operating losses for the next few years and plans to seek additional financing[298] - The total assets increased to approximately $31.6 million as of March 31, 2025, from approximately $25.6 million at December 31, 2024, primarily due to increases in goodwill[298] Acquisition and Strategic Plans - The acquisition of SLG is expected to enhance Cycurion's qualifications for future government contracts due to SLG's historical relationships with contracting agencies[267] - Cycurion entered into a Term Sheet with SLG on April 25, 2023, for the acquisition, which includes provisions for forming two new subsidiaries[268] - The SLG Term Sheet allows Cycurion to terminate the agreement at any time before April 11, 2025, without further obligations[269] - Cycurion plans to close the transactions contemplated by the SLG Term Sheet during the current fiscal quarter[269] - The RCR Term Sheet, related to SLG, is expected to be closed in the second half of the current fiscal year, contingent upon the SLG transaction[273] - Cycurion's growth strategy includes organic business solutions and strategic acquisitions of cyber/infrastructure service providers[257] Technology and Services - Cycurion acquired technology assets from Sabres, including Multi-Dimensional Protection and Bot Mitigation SaaS platforms, which were integrated into existing services[277] - The Cycurion Security Platform utilizes a proprietary cloud-based AI algorithm to enhance cybersecurity measures in real-time against emerging threats[278] - The MDP SaaS platform combines Web Application Firewall and Bot Mitigation to improve clients' cyber posture and reduce risks from automated attacks[278] Stock and Market Considerations - The fair value of the Common Stock was estimated due to its lack of historical public trading[316] - The expected term for options is calculated to be 10 years based on the average vesting term and contractual period[316] - Expected volatility is derived from the historical share volatility of comparable publicly traded companies[316] - The risk-free interest rate is based on U.S. Treasury securities yields appropriate for the term of the award[316] - The company has not paid dividends on its Common Stock and does not expect to in the foreseeable future[316] - The assessment includes contemporaneous third-party valuations of the Common Stock[316] - The analysis considers the likelihood of achieving a liquidity event, such as an IPO or sale of the company[316] - Market performance of comparable publicly traded companies is taken into account[316] - The company is classified as a "smaller reporting company" and is not required to provide additional market risk disclosures[317]

Revenue and Performance - Total revenue for the three months ended April 30, 2024 and 2025 was $80.1 million, remaining relatively flat year-over-year [161]. - Total revenue for the three months ended April 30, 2025, was $80,111 thousand, a slight increase of $8 thousand compared to $80,103 thousand in the same period of 2024 [189]. - Remaining performance obligations (RPO) increased from $346.3 million in 2024 to $427.5 million in 2025, with $241.0 million expected to be recognized as revenue in the next twelve months [160]. - Subscription revenue decreased by $721 thousand, or 1%, from $72,110 thousand in 2024 to $71,389 thousand in 2025, primarily due to a $4.3 million net decrease from existing customers [193]. - Professional services and other revenue increased by $729 thousand, or 9%, from $7,993 thousand in 2024 to $8,722 thousand in 2025, driven by increases in event sponsorship and consulting revenue [194]. Customer and Market Dynamics - As of April 30, 2025, 70% of annual recurring revenue (ARR) was derived from consumption-based service agreements, with expectations for this percentage to increase [158]. - The company had over 2,500 customers as of April 30, 2025, with enterprise customers accounting for 45% of revenue [167]. - The macroeconomic environment has elongated the software sales cycle and increased deal scrutiny, potentially impacting revenue growth in the near term [162]. Financial Performance - Net losses were $26.0 million for the three months ended April 30, 2024, and $18.1 million for the same period in 2025, with an accumulated deficit of $1.5056 billion as of April 30, 2025 [163]. - Net loss for the three months ended April 30, 2025, was $18,052 thousand, compared to a net loss of $26,007 thousand in 2024, reflecting an improvement of $7,955 thousand [189]. - Cash collected from customers during the three months ended April 30, 2025 was $93.2 million, exceeding cash outflows of $89.2 million [217]. - Net cash provided by operating activities for the three months ended April 30, 2025 was $3.951 million, compared to $1.901 million for the same period in 2024 [214]. Expenses and Cost Management - Total operating expenses decreased by $7,050 thousand, or 9%, from $80,839 thousand in 2024 to $73,789 thousand in 2025, with significant reductions in sales and marketing, research and development, and general and administrative expenses [199]. - Sales and marketing expenses as a percentage of total revenue increased from 50% in 2024 to 53% in 2025 [174]. - Research and development expenses as a percentage of total revenue increased from 25% in 2025 to 28% in 2024, indicating a focus on future growth [176]. - Research and development expenses decreased by $2,758 thousand, or 12%, from $22,719 thousand in 2024 to $19,961 thousand in 2025, with a decrease in employee-related costs [200]. - General and administrative expenses decreased by $1,734 thousand, or 11%, from $15,901 thousand in 2024 to $14,167 thousand in 2025, primarily due to a reduction in professional and legal fees [201]. Liquidity and Financing - Cash and cash equivalents as of April 30, 2025, totaled $47.2 million, held primarily for working capital purposes [204]. - The company has a $125.3 million credit facility, all of which had been drawn as of April 30, 2025 [204]. - The company is required to maintain a minimum liquidity of $25.0 million in unrestricted cash as per the credit facility [213]. - As of April 30, 2025, the cash interest rate on the term loan was approximately 7.3%, with an additional fixed rate of 5.0% accruing on the outstanding principal [212]. Economic and Inflation Considerations - The company does not believe inflation has materially affected its business or financial condition to date [232]. - Subscription contracts often contain pricing terms tied to the Consumer Price Index (CPI), and renewal pricing policies are designed to approximate CPI changes [232]. - If costs become subject to significant inflationary pressure, the company may not be able to fully offset these costs with price increases, which could adversely affect its financial condition [232]. - A hypothetical change in interest rates of 100 basis points would not have a material impact on the fair value of the company's outstanding debt [229]. Strategic Initiatives - The company entered into a Controlled Equity Offering Sales Agreement to sell up to $150.0 million of Class B common stock, with a commission of 3.0% on gross proceeds [208]. - The company has no current agreements for potential investments or acquisitions but may seek additional equity financing in the future [208]. - The company has experienced fluctuations in net loss due to transaction gains or losses from remeasuring current asset and liability balances in foreign currencies [231]. - The company has not engaged in hedging foreign currency transactions to date but is considering the costs and benefits of initiating such a program as it expands international operations [231].

Revenue and Growth - Revenue for the three months ended April 30, 2025, was $162.1 million, representing a year-over-year growth of 19.6% from $135.5 million in the same period of 2024[129] - Revenue for the three months ended April 30, 2025, was $162.1 million, a 19.6% increase from $135.5 million in the same period of 2024, primarily driven by a $24.8 million increase in subscription revenue[162] - Total customers grew to 2,342 as of April 30, 2025, from 2,102 as of April 30, 2024, indicating a strong customer acquisition strategy[162] - As of April 30, 2025, the company had 2,342 customers, with a dollar-based net retention rate of 109% for the trailing 12 months[137] - Approximately 46% of revenue for the three months ended April 30, 2025, was generated outside of the United States, compared to 44% in the same period of 2024[139] Financial Performance - Net losses for the three months ended April 30, 2025, were $35.6 million, compared to $35.7 million in the same period of 2024[129] - The company incurred a net loss of $35.6 million for the three months ended April 30, 2025, compared to a net loss of $35.7 million in the same period of 2024[160] - Gross profit increased by $20.3 million, or 22.3%, to $111.2 million, with a gross margin improvement to 68.6% from 67.1%[164] - Operating cash flow for the three months ended April 30, 2025, was $24.1 million, up from $19.4 million in the prior year[172] - Other income, net, increased by $0.5 million, or 9.3%, to $5.7 million, driven by higher investment income from marketable securities[168] Cash Flow and Liquidity - Non-GAAP free cash flow was $22.9 million for the three months ended April 30, 2025, up from $11.4 million in the same period of 2024[129] - Free cash flow for the three months ended April 30, 2025, was $22.9 million, an increase from $11.4 million for the same period in 2024, driven by higher collections from new contracts and renewals[180] - As of April 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $539.8 million, with $307.8 million invested in government and corporate debt securities[191] - The company assesses liquidity primarily through cash on hand and projected timing of billings under contracts, believing current resources will meet requirements for at least the next 12 months[181] Expenses and Investments - Operating expenses are expected to increase as the company expands its operations and invests in sales and marketing to drive growth[152] - Research and development expenses rose by $2.4 million, or 7.1%, to $36.8 million, reflecting continued investment in platform enhancements[166] - General and administrative expenses surged by $13.7 million, or 51.2%, to $40.5 million, largely due to increased professional services and legal costs related to acquisitions[167] - The cost of revenue increased by $6.3 million, or 14.2%, to $50.9 million, primarily due to higher hosting and messaging fees[163] Future Outlook - The company plans to continue investing in research and development to enhance its platform and expand its channel offerings, particularly in artificial intelligence capabilities[140] - The company expects free cash flow to fluctuate in future periods due to changes in operating expenses and macroeconomic factors affecting collection efforts[180] Customer Retention and Turnover - The decline in the dollar-based net retention rate from 117% to 109% was attributed to customer turnover and renewals at lower subscription levels due to macroeconomic conditions[138] - The company employs a land-and-expand business model, which allows for growth as customers increase their usage of the platform[128] Foreign Currency and Risk Management - The company does not currently face significant foreign currency risk as most sales are denominated in U.S. dollars, with only sales in Japan denominated in Yen[193] - The company uses derivative financial instruments, primarily forward exchange contracts, to hedge against foreign currency exchange rate fluctuations[194] Seasonality - The company experienced seasonality in cost of revenue, with the highest increase in messaging volume typically occurring in the fourth quarter due to holiday season activity[185]