Financial Performance - Revenue for the three months ended March 31, 2025, was $6.4 million, a decrease of approximately 8.6% compared to $7.0 million for the same period in 2024[176]. - The company reported a net loss of $2.8 million for the three months ended March 31, 2025, compared to a net loss of $2.9 million for the same period in 2024[176]. - For the three months ended March 31, 2025, net revenues decreased by 8.1% to $6,421,371 compared to $6,989,746 for the same period in 2024[215]. - Gross profit increased by 15.7% to $1,764,572 for the three months ended March 31, 2025, driven by an increase in average selling price per vehicle[215]. - Adjusted EBITDA for the three months ended March 31, 2025 was $(877,790), a decrease of $442,900 compared to $(434,890) for the same period in 2024[199]. - The net loss for the three months ended March 31, 2025 was $(2,750,317), a slight improvement of 3.8% compared to $(2,859,862) in 2024[215]. Operating Expenses - General and administrative expenses rose significantly by 58.3% to $3,393,542 for the three months ended March 31, 2025, compared to $2,143,550 in 2024[220]. - Total operating expenses increased by 47.0% to $3,719,080 for the three months ended March 31, 2025, compared to $2,529,711 in 2024[220]. - General and administrative expenses increased by $1,249,992 for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to equity compensation increases of $632,714, inventory write-offs of $353,377, and recruitment expenses of $85,541[222]. Revenue Recognition - The Company recognizes revenue when the product build is completed and title has been transferred, with revenue from vehicle sales recorded upon delivery[256]. - Approximately 25% to 50% of the total contract consideration is received as an upfront payment, recorded as deferred revenue, with the remaining 50% to 75% billed upon completion of the build[257]. - The Company generates revenue through extended warranties and repair services, with service revenue recognized upon completion of the repair work[258][259]. - The Company applies the five-step revenue recognition model to contracts when it is probable that it will collect the consideration due[255]. Financing and Debt - The company has a senior secured convertible note with a principal amount of $15,819,209, accruing interest at an annual rate of Prime Interest rate plus 5%[180]. - The December 2023 Convertible Note has a maturity date of December 12, 2026, and ranks senior to all outstanding and future indebtedness[181]. - The company executed a Business Loan and Security Agreement for a term loan of $1,575,000, with repayments commencing March 3, 2025[189]. - The Company entered into a securities purchase agreement on January 8, 2025, for a loan of $1,724,100, which includes the issuance of 500,000 shares of Common Stock[276][277]. - The Company entered into a Business Loan and Security Agreement on February 20, 2025, receiving a term loan of $1,575,000, with total interest accruing to $661,500[281]. - The Company entered into a new loan agreement on April 4, 2025, receiving a term loan of $1,824,300, with total interest accruing to $638,505[290]. - The net proceeds of the new loan were used to pay off the Agile Loan in the discounted amount of $1,749,300[291]. - The Company received two term loans of $150,000 each from a private lender on May 8, 2025, with an interest rate of 24.99%[294]. Operational Developments - The company plans to leverage the assets of Brand New Muscle Car (BNMC) for the production of Mustangs, resulting in 6 Mustang contracts[195]. - The company increased production by approximately 20% in 2023 and added an additional 10,000 sq. ft. of space in the second half of 2024 for vehicle storage[194]. - The company has opened new retail locations in West Palm Beach, FL, and Nantucket, MA, as part of its marketing strategy in 2025[196]. - The company plans to relocate quality and warranty services to a new facility in 2024, enhancing operational efficiency[195]. Cash Flow and Liquidity - Cash used in operating activities was $3,045,185 for the three months ended March 31, 2025, compared to $2,554,971 for the same period in 2024, primarily due to a decrease in deferred revenue and increases in accounts receivable and prepaid assets[240][241]. - The company provided cash of $2,249,565 from financing activities for the three months ended March 31, 2025, mainly from proceeds of the January 2025 Convertible Note and the Agile Loan[244]. - The company’s liquidity condition raises substantial doubt about its ability to continue as a going concern for the next twelve months, as indicated by management's assessment[239]. - The company plans to use its current cash position and collections from accounts receivable to fund ongoing operations, while also considering future financing options[247]. Market and Economic Conditions - Inflation has impacted the company through increased shipping, product, and labor costs, but did not have a material impact on operations for the three months ended March 31, 2025[248]. Tax and Valuation - As of March 31, 2025, the Company had zero reserves related to uncertain tax positions, indicating no adjustments were necessary for tax positions taken[266]. - The Company recorded a valuation allowance against all deferred tax assets as it is more likely than not that the benefits of these assets will not be recognized[269]. Strategic Partnerships and Agreements - The Company signed a Strategic Partnership Agreement with One Drivers Club to launch a retail showroom in West Palm Beach, Florida, with a base rent of $225,000 per annum, subject to 4% annual increases[284]. - The Company will pay One Drivers Club $75,000 for showcasing custom vehicles from April 1, 2025, to December 31, 2025[287]. Shareholder and Corporate Governance - The Company held its 2024 annual meeting on December 27, 2024, with 21,334,357 shares (58.94%) represented[288]. - The Company authorized a new series of Series B Convertible Preferred Stock, with an initial conversion of $1,284,881 into 4,000 shares of Series B Preferred Stock[295]. - The Exchange Agreement allows the Lender to require the Company to participate in Additional Exchanges for converting outstanding amounts into Series B Preferred Stock[296]. - The Exchange Agreement is detailed in the Current Report on Form 8-K filed on May 15, 2025, as Exhibit 10.1[297].

Financial Performance - Revenue for the three months ended March 31, 2025, was $6.4 million, a decrease of approximately 8.57% compared to $7.0 million for the same period in 2024[176]. - The company reported a net loss of $2.8 million for the three months ended March 31, 2025, compared to a net loss of $2.9 million for the same period in 2024[176]. - Net revenues for the three months ended March 31, 2025, were $6,421,371, a decrease of 8.1% compared to $6,989,746 for the same period in 2024[215]. - Gross profit increased by 15.7% to $1,764,572 for the three months ended March 31, 2025, compared to $1,525,633 in 2024, driven by an increase in average selling price per vehicle[215][219]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(877,790), a decrease of $442,900 compared to $(434,890) for the same period in 2024[199]. - The company reported a net loss of $(2,750,317) for the three months ended March 31, 2025, a slight improvement of 3.8% compared to $(2,859,862) in 2024[215]. - Total operating expenses increased by 47.0% to $3,719,080 for the three months ended March 31, 2025, compared to $2,529,711 in 2024[220]. - General and administrative expenses rose significantly by 58.3% to $3,393,542 for the three months ended March 31, 2025, compared to $2,143,550 in 2024[220]. - Interest expense increased by 63.4% to $(1,856,979) for the three months ended March 31, 2025, compared to $(1,136,300) in 2024[215]. - The company experienced a significant increase in provision for credit losses, reporting $9,295 for the three months ended March 31, 2025, compared to $0 in 2024[220]. Production and Operations - The company increased production by approximately 20% in 2023 utilizing one shift[194]. - The company plans to leverage the assets of Brand New Muscle Car (BNMC) for the production of Mustangs in 2024 and 2025, resulting in 6 Mustang contracts[195]. - The company opened new retail locations in West Palm Beach, FL, and Nantucket, MA, in 2025[196]. - The company plans to relocate quality and warranty services to a new facility in 2024, which will also serve as a warranty and used vehicle sales center[195]. - Vehicle builds accounted for 99.8% of total revenue for the three months ended March 31, 2025, with a decrease of $491,455 compared to the same period in 2024[216][217]. - Warranty and other revenue decreased by 94.6% to $4,290 for the three months ended March 31, 2025, compared to $79,050 in 2024[216]. Financial Position and Liquidity - The company anticipates sufficient resources to operate during 2024[193]. - As of March 31, 2025, the company had customer deposits amounting to $7,721,542 and deferred revenue of $2,766,821 for vehicles completed but not yet titled[228]. - Cash used in operating activities was $3,045,185 for the three months ended March 31, 2025, compared to $2,554,971 for the same period in 2024[240][241]. - The company had cash and cash equivalents of $677,473 as of March 31, 2025, with primary operating funds sourced from cash receipts from sales and loans payable[232]. - The company anticipates needing to raise additional financing through loans or equity raises to support future capital requirements, with no assurance that such financing will be available on commercially acceptable terms[238]. - Management has raised substantial doubt about the company's ability to continue as a going concern for the next twelve months due to liquidity concerns[239]. Debt and Financing - The company has a senior secured convertible note with a principal amount of $15,819,209, accruing interest at an annual rate of Prime Interest rate plus 5%[180]. - The December 2023 Convertible Note has a maturity date of December 12, 2026, and ranks senior to all outstanding and future indebtedness of the company[181]. - The company provided cash of $2,249,565 from financing activities for the three months ended March 31, 2025, primarily from the January 2025 Convertible Note and the Agile Loan[244]. - Total future lease obligations as of March 31, 2025, amount to $4,734,564, with the largest obligations in 2029 and beyond totaling $2,765,365[246]. - The Company entered into a Business Loan and Security Agreement on February 20, 2025, receiving a term loan of $1,575,000, with total interest accruing to $661,500[281]. - The Company entered into a new loan agreement on April 4, 2025, receiving a term loan of $1,824,300, with total interest accruing to $638,505[290]. - The net proceeds from the new loan were used to pay off the previous Agile Loan of $1,749,300[291]. - The Company entered into loan agreements with a private lender for two term loans totaling $300,000, with an interest rate of 24.99%[294]. - The Company authorized a new series of Series B Convertible Preferred Stock, allowing for the conversion of $1,284,881 of outstanding notes into shares[295]. Revenue Recognition and Tax Assets - The company recognizes revenue upon completion of vehicle builds and transfer of title, with product revenue recorded when the build is completed[256]. - Approximately 25% to 50% of the total contract consideration is received as an upfront payment, recorded as deferred revenue, with the remaining 50% to 75% billed upon completion[257]. - The company generates additional revenue through extended warranties and repair services, with service revenue recognized upon completion of the work[258][259]. - The company has a warranty reserve based on historical warranty costs per vehicle, which may require adjustments if actual costs differ from estimates[261]. - As of March 31, 2025, the company has recorded a valuation allowance against all deferred tax assets, indicating it is more likely than not that the benefits of these assets will not be recognized[269]. - The company evaluates the realizability of deferred tax assets quarterly, considering factors such as future taxable income and historical taxable income[268]. Strategic Initiatives - The Company signed a Strategic Partnership Agreement with One Drivers Club to launch a retail showroom in West Palm Beach, Florida, with a base rent of $225,000 per annum, subject to 4% annual increases[284]. - The Company will issue 725,000 unrestricted shares of capital stock to One Drivers Club upon completion of the showroom build-out, with a minimum value of $500,000[284]. - The Company issued 236,000 shares of common stock to an advisor for business advisory services on February 20, 2025[282]. - The Company appointed Keven Kastner as Chief Revenue Officer to drive sales and manage revenue streams[283]. Miscellaneous - The company’s financial instruments, such as cash and accounts receivable, approximate their carrying amounts due to their short maturity[270]. - The company’s warranty obligations are influenced by its product quality programs and historical warranty costs, which are monitored for potential adjustments[261]. - The Exchange Agreement allows the Lender to require the Company to participate in Additional Exchanges for converting outstanding amounts into Series B Preferred Stock[296]. - The Exchange Agreement is detailed in the Current Report on Form 8-K filed on May 15, 2025, as Exhibit 10.1[297]. - As a smaller reporting company, the Company is not required to provide quantitative and qualitative disclosures about market risk[298].

Revenue Growth - INVO Fertility reported record revenue of $6.5 million for 2024, representing a 116% increase compared to 2023[4] - Consolidated clinic revenue increased by 125% to $6.45 million in 2024, compared to $2.86 million in 2023[5] - Revenue from all clinics, including consolidated and equity method clinics, was $7.73 million, a 78% increase from $4.35 million in 2023[5] Financial Performance - Adjusted EBITDA for the fourth quarter of 2024 improved to $(450,908), compared to $(1.0) million in the prior year[5] - The net loss for 2024 increased to $(9.1) million, up from $(8.0) million in 2023, primarily due to the addition of NAYA Therapeutics and related merger costs[5] - Adjusted EBITDA for the fertility business was $(2.23) million for the year, compared to $(4.90) million in the previous year[14] Strategic Expansion - The company plans to expand its fertility operations into additional markets, leveraging existing centers in Wisconsin, Georgia, and Alabama[4] - INVO Fertility is divesting a majority stake in NAYA TX to refocus on its core fertility operations[6] - The company aims to capitalize on favorable market trends and policy developments that emphasize the importance of fertility care[4] Market Trends - The global fertility services market is projected to grow, driven by rising infertility rates and increasing acceptance of assisted reproductive technologies[7]

Financial Performance - INVO Fertility reported record revenue of $6.5 million for 2024, representing a 116% increase compared to $3.0 million in 2023[4] - Consolidated clinic revenue increased by 125% to $6.45 million in 2024, up from $2.86 million in 2023[5] - Revenue from all clinics, including consolidated and equity method clinics, rose by 78% to $7.73 million in 2024, compared to $4.35 million in 2023[5] - Adjusted EBITDA for the fourth quarter of 2024 improved to $(450,908), a significant enhancement from $(1.0) million in the prior year[5] - Adjusted EBITDA for the fertility business was $(450,908) for Q4 2024, compared to $(1,020,499) in Q4 2023[14] Loss and Costs - The net loss for 2024 increased to $(9.1) million, compared to $(8.0) million in 2023, primarily due to the addition of NAYA Therapeutics and related merger costs[5] Market Expansion - The company is actively pursuing expansion into additional markets, leveraging the success of its existing fertility centers in Wisconsin, Georgia, and Alabama[4] - The company aims to expand access to fertility care in response to declining U.S. fertility rates and rising public demand for solutions[4] Strategic Divestment - INVO Fertility plans to divest a majority stake in NAYA TX to refocus on its core fertility operations, with the final separation subject to necessary approvals[6] Market Trends - The global fertility services market is projected to grow, driven by rising infertility rates and increasing acceptance of assisted reproductive technologies (ART)[7]

Financial Position - As of March 31, 2025, accounts receivable totaled $3,985,715, with a net amount of $3,903,943 after an allowance for doubtful accounts of $81,772[125]. - Inventory as of March 31, 2025, was valued at $221,113, an increase from $126,400 as of December 31, 2024[130]. - The company reported no deferred revenue as of March 31, 2025, and December 31, 2024, indicating all revenue was recognized upon delivery or over time[188]. - The Company reported total property and equipment of $8,986,618 as of March 31, 2025, an increase from $7,539,507 as of December 31, 2024, reflecting growth in assets[243]. - Total accounts payable and accrued liabilities increased to $2,252,020 as of March 31, 2025, up from $1,721,527 as of December 31, 2024[249]. - The total face amount of notes payable as of March 31, 2025, is $20,428,886, with a total debt discount of $(2,413,365) and total repayments of $(14,275,603) resulting in a net amount of $15,195,788[258]. Revenue Recognition - The company generated all revenues for the three months ended March 31, 2025, from mobile fuel sales, with revenue recognized at the time of delivery[170]. - Revenue from fuel sales is recognized at the time of delivery, while membership revenue is recognized at the end of each month, reflecting the satisfaction of performance obligations over time[169]. - Fuel sales accounted for $15,857,380, or 97.45% of total revenue in Q1 2025, compared to $6,403,612, or 97.07% in Q1 2024[189]. - The company recognizes revenue on a gross basis in fuel sales transactions, acting as the principal in these transactions[182]. Customer and Supplier Concentration - Customer A accounted for 43.09% of total sales for the three months ended March 31, 2025, compared to 0.00% in the same period of 2024, indicating a significant concentration risk[138]. - Total accounts receivable from major customers (A, B, and C) represented 58.84% of total accounts receivable as of March 31, 2025, up from 46.10% in 2024, highlighting increased reliance on a few key customers[140]. - Vendor A accounted for 51.57% of total vendor purchases for the three months ended March 31, 2025, compared to 0.00% in 2024, indicating a high dependency on a limited number of suppliers[141]. - The company actively seeks to diversify its customer base to reduce reliance on a small number of key accounts, which is part of its risk mitigation strategy[144]. Debt and Financing - The company has multiple loans with a 0% interest rate, indicating a strategy to minimize financing costs[258]. - The company has a significant amount of unsecured loans, totaling $20,428,886, which may impact its risk profile[258]. - The company entered into five unsecured, non-interest-bearing notes totaling $5,000,000 in October 2024, which were fully repaid in February 2025[283]. - The company executed a two-month loan for $2,500,000 in December 2024, incurring transaction fees of $440,000, and repaid the loan in March 2025[271]. - The company refinanced existing MCA loans to manage liquidity, which may lead to higher cumulative borrowing costs due to upfront fees and compounding effects[264]. Expenses and Costs - Marketing and advertising costs increased to $65,186 in Q1 2025 from $24,506 in Q1 2024, reflecting a rise of approximately 166.5%[207]. - Depreciation and amortization expense for Q1 2025 was $588,172, compared to $281,320 for Q1 2024, indicating a significant increase in asset utilization[248]. Risk Management - The company evaluates and discloses risks that could materially affect its financial condition, including industry cyclicality and macroeconomic conditions[102]. - The company has implemented credit risk management by regularly reviewing customer creditworthiness and adjusting credit terms as necessary[144]. - The company is responsible for fulfilling the obligation of delivering fuel to customers and is exposed to inventory risk due to fuel procurement[185]. Tax and Valuation - The company has recorded a full valuation allowance against its deferred tax assets, resulting in a net carrying amount of $0 as of March 31, 2025[201]. - The Company is assessing the impact of ASU 2023-09 on its income tax disclosures, which may enhance reporting requirements starting after December 15, 2024[236].

Product Development and Technology - Veea has developed the VeeaHub product, which integrates a Linux server, Wi-Fi Access Point, firewall, IoT gateway, and 4G/5G modules, with approximately 125 granted patents and 25 pending applications [124]. - Veea's Edge Platform offers a distributed computing architecture that enhances data privacy, reliability, and low latency for real-time decisions [125]. - The Company aims to simplify the journey towards intelligent connectivity for devices and applications at the edge of the network [123]. Financial Performance - For the three months ended March 31, 2025, the Company reported net revenues of $14,262, a decrease of $2,508 or 15% compared to $16,770 for the same period in 2024 [147]. - Cost of goods sold increased by $346, or 3%, to $12,330 for the three months ended March 31, 2025, compared to $11,984 in the prior year [149]. - Product development expenses surged by $121,352, or 129%, reaching $215,575 for the three months ended March 31, 2025, primarily due to increased internal development and contractor costs [150]. - Sales and marketing expenses rose significantly by $262,987, or 305%, totaling $349,251 for the three months ended March 31, 2025, driven by enhanced go-to-market strategies [151]. - General and administrative expenses decreased by $736,302, or 13%, to $5,109,473 for the three months ended March 31, 2025, attributed to cost reduction measures [152]. - The Company incurred a loss from operations of $5,767,483 for the three months ended March 31, 2025, compared to a loss of $6,090,392 in the same period of 2024 [147]. - Interest expense increased by $489,716, or 107%, to $946,484 for the three months ended March 31, 2025, due to additional draws on the revolving line of credit [158]. - The Company had an accumulated deficit of $213.5 million as of March 31, 2025, and expects to continue incurring net losses as it scales its business [159]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(5,618,846), compared to $(5,959,058) for the same period in 2024 [163]. Strategic Initiatives - The Company entered into an Asset Purchase Agreement with Crowdkeep, Inc., acquiring certain IoT technology assets for the issuance of 4,065,689 shares of Common Stock [129]. - Veea secured $1,000,000 in loans from the Crowdkeep Investor through two Note Purchase Agreements, with an annual interest rate of 8% [131]. - The Company has the right to direct White Lion Capital to purchase up to $25 million in newly issued shares of Common Stock under the Equity Line of Credit program [138]. - The Crowdkeep Convertible Notes can convert into shares of Common Stock at a price of $5.00, subject to certain conditions, and will automatically convert if the stock price reaches $7.50 for ten consecutive trading days [132]. - The Company is focused on expanding its market presence through strategic acquisitions and partnerships, as evidenced by the Crowdkeep transaction [129]. - The Company plans to fund operations through a combination of equity and debt offerings, including expected cash proceeds from the ELOC Program and anticipated tax refunds totaling up to $7 million [160]. Leadership Changes - The appointment of Randal V. Stephenson as Senior Vice President, Finance and Chief Strategy Officer was made on May 1, 2025 [137]. Market Risk Disclosure - Not applicable for quantitative and qualitative disclosures about market risk as the company is a smaller reporting company [164].

Product Development and Technology - Veea has developed the VeeaHub product, which integrates a Linux server, Wi-Fi Access Point, firewall, IoT gateway, and NVMe data storage, with approximately 125 granted patents and 25 pending applications[124] - The Company entered into an Asset Purchase Agreement with Crowdkeep, Inc., acquiring certain IoT technology assets for the issuance of 4,065,689 shares of Common Stock[129] - Veea's Edge Platform offers a distributed computing architecture that enhances data privacy, reliability, and low latency for real-time decisions[125] - The Company aims to simplify the journey towards intelligent connectivity for devices and applications at the edge of the network[123] - Veea's business model resembles the Android OS platform architecture, focusing on hybrid edge-cloud computing and AI-enabled applications[126] Financial Performance - For the three months ended March 31, 2025, the Company reported net revenues of $14,262, a decrease of $2,508 or 15% compared to $16,770 for the same period in 2024[147] - Cost of goods sold increased by $346, or 3%, to $12,330 for the three months ended March 31, 2025, compared to $11,984 in the prior year[149] - Product development expenses surged by $121,352, or 129%, totaling $215,575 for the three months ended March 31, 2025, driven by increased internal development and contractor costs[150] - Sales and marketing expenses rose significantly by $262,987, or 305%, reaching $349,251 for the three months ended March 31, 2025, due to enhanced go-to-market strategies[151] - General and administrative expenses decreased by $736,302, or 13%, totaling $5,109,473 for the three months ended March 31, 2025, attributed to cost reduction measures[152] - The Company incurred a loss from operations of $5,767,483 for the three months ended March 31, 2025, compared to a loss of $6,090,392 in the same period of 2024[147] - The net income for the three months ended March 31, 2025, was $4,299,052, a significant improvement from a net loss of $6,547,412 in the prior year[147] - Adjusted EBITDA for the three months ended March 31, 2025, was $(5,618,846), compared to $(5,959,058) for the same period in 2024, reflecting ongoing operational challenges[163] Financing and Investment - Veea secured $1,000,000 in loans from the Crowdkeep Investor through two Note Purchase Agreements, with an annual interest rate of 8%[131] - The Company has the right to direct White Lion Capital to purchase up to $25.0 million in newly issued shares of Common Stock under the Equity Line of Credit program[138] - The Crowdkeep Convertible Notes can convert into shares of Common Stock at a price of $5.00, subject to certain conditions, and will automatically convert if the stock price reaches $7.50 for ten consecutive trading days[132] - Interest expense increased by $489,716, or 107%, to $946,484 for the three months ended March 31, 2025, due to additional draws on the revolving line of credit[158] - The Company expects to fund operations through a combination of private and public equity and debt offerings, including anticipated cash tax refunds of up to $7 million related to R&D activities and inventory prepayments[160] Management and Leadership - Randal V. Stephenson was appointed as the Senior Vice President, Finance and Chief Strategy Officer on May 1, 2025[137] Market Risk - Not applicable for quantitative and qualitative disclosures about market risk as the company is a smaller reporting company[164]

Financial Performance - Total revenue for Q3 fiscal 2025 was $2.3 billion, a year-over-year growth of 15.3% compared to $2.0 billion in Q3 fiscal 2024[113] - Product revenue reached $452.7 million, accounting for 19.8% of total revenue, with a year-over-year growth of 15.8%[114] - Subscription and support revenue grew to $1.8 billion, representing 80.2% of total revenue, with a year-over-year growth of 15.2%[114] - Total revenue for the three months ended April 30, 2025, was $2,289.0 million, representing a year-over-year increase of 15.3%[124] - Subscription and support revenue for the three months ended April 30, 2025, was $1,836.3 million, a 15.2% increase from $1,593.8 million in the same period last year[130] - Product revenue for the three months ended April 30, 2025, was $452.7 million, reflecting a 15.8% increase from $391.0 million in the prior year[128] - Net income for the three months ended April 30, 2025, was $262.1 million, which is 11.5% of total revenue[125] - Total gross profit for the three months ended April 30, 2025, was $1,669.7 million, with a gross margin of 72.9% compared to 74.1% in the same period in 2024[139] Expenses and Margins - Gross margin for the three months ended April 30, 2025, was 72.9%, down from 74.1% in the same period last year[124] - Operating income for the three months ended April 30, 2025, was $218.8 million, with an operating margin of 9.6%[124] - Total operating expenses for the three months ended April 30, 2025, were $1,450.9 million, representing 63.3% of total revenue[125] - Research and development expenses for the three months ended April 30, 2025, were $494.5 million, an increase of $37.3 million or 8.2% compared to the same period in 2024[143] - Sales and marketing expenses for the three months ended April 30, 2025, were $718.7 million, a decrease of $73.8 million or 10.3% compared to the same period in 2024[145] - General and administrative expenses for the three months ended April 30, 2025, were $118.6 million, a decrease of $45.3 million or 38.2% compared to the same period in 2024[147] Cash Flow and Investments - Free cash flow (non-GAAP) for the nine months ended April 30, 2025, was $2,535.3 million, compared to $2,635.5 million in the prior year[122] - Cash flow provided by operating activities for the nine months ended April 30, 2025, was $2,695.2 million, slightly down from $2,744.9 million in the previous year[122] - Cash provided by operating activities was $2.7 billion for the nine months ended April 30, 2025, a slight decrease of $49.7 million compared to the same period in 2024[167] - Cash used in investing activities increased by $100.8 million to $1.4 billion for the nine months ended April 30, 2025, primarily due to higher purchases of investments[169] - Cash used in financing activities decreased by $759.0 million to $404.8 million for the nine months ended April 30, 2025, mainly due to reduced cash used for share repurchases[171] - Total cash, cash equivalents, and investments reached $8.5 billion as of April 30, 2025, up from $6.8 billion as of July 31, 2024[154] Strategic Initiatives - In April 2025, the company introduced new offerings such as Prisma AIRS and Cortex XSIAM 3.0, and announced the acquisition of Protect AI, expected to close by Q1 fiscal 2026[115] - The company focuses on a platformization strategy to simplify security architectures and consolidate various products and services[108] - The AI-driven Cortex platform enhances security operations with unified data and automation, providing real-time prevention and automated remediation[110] - The company emphasizes the importance of innovation and timely development of new features to meet end-customer needs and improve competitive positioning[115] Market and Economic Conditions - The company continues to monitor macroeconomic conditions, including inflation and geopolitical tensions, which may impact business performance[117] - The company maintains a two-tiered indirect fulfillment model for sales, working closely with channel partners[113] - Revenue from the Americas increased by $169.6 million or 12.5% for the three months ended April 30, 2025, contributing the highest increase in revenue due to its larger scale[131] Accounting and Financial Estimates - The company has made significant estimates and assumptions regarding goodwill and intangible assets in business combinations, impacting future amortization expenses[174] - A hypothetical 100 basis point increase in interest rates would result in a $124.7 million decline in the fair market value of the investment portfolio[178] - The company maintains a diversified portfolio of cash, cash equivalents, and investment-grade securities to minimize interest rate risk[178] - There have been no significant changes to critical accounting estimates since the last report, except for updates related to the acquisition of certain IBM QRadar assets[173] - The company evaluates its estimates and assumptions on an ongoing basis, acknowledging that actual results could differ materially due to economic uncertainties[172] - Contingent consideration obligations in business combinations are subject to revaluation at the end of each reporting period, which may materially impact future fair values[175] - The company aims to preserve principal, provide liquidity, and maximize income without significantly increasing risk in its investment activities[178] - Recent accounting pronouncements have been reviewed, with expectations of their impact on results of operations and financial condition noted[176] - The company assesses its exposures to market risk, with no material changes reported since the last annual report[177] - Critical estimates in valuing intangible assets include expected future cash flows, discount rates, and profit margins[174]

Financial Performance - Parcel volume increased by 19.1% year over year to 8.5 billion[1] - Adjusted net income grew by 1.6% to RMB2.3 billion[1] - Total revenues reached RMB10,891.5 million (US$1,500.9 million), an increase of 9.4% from RMB9,960.0 million in the same period of 2024[4] - Net income increased by 40.9% to RMB2,039.2 million (US$281.0 million) compared to RMB1,447.7 million in the same period of 2024[21] - Adjusted EBITDA rose by 0.7% to RMB3,686.7 million (US$508.0 million) from RMB3,660.4 million in the same period of 2024[23] - Revenue from core express delivery services increased by 9.8%, driven by a 19.1% growth in parcel volume[9] - KA revenue surged by 129.3% due to an increase in e-commerce return parcels[9] - Basic and diluted earnings per ADS were RMB2.50 (US$0.34), an increase of 41.2% from RMB1.77 in the same period of 2024[22] Cost and Expenses - Total cost of revenues increased by 17.9% to RMB8,202.2 million (US$1,130.3 million) from RMB6,957.9 million in the same period last year[10] - Gross profit for the same period decreased to RMB 2,689,220 (US$370,584) from RMB 3,002,085[43] Guidance and Future Expectations - The company reiterated its annual volume guidance to grow by 20%-24%[1] - The company expects parcel volume in 2025 to be between 40.8 billion and 42.2 billion, reflecting a year-over-year growth of 20% to 24%[28] Shareholder Returns - The company has approved a share repurchase program with an aggregate value of US$2.0 billion, with US$771.7 million remaining as of March 31, 2025[26] - The share repurchase program extension to June 30, 2026, reflects the company's confidence in market opportunities and financial strength[27] Cash Flow and Assets - Net cash provided by operating activities rose from RMB 2,031,020 thousand in Q1 2024 to RMB 2,362,976 thousand in Q1 2025, an increase of 16.3%[46] - Cash, cash equivalents, and restricted cash decreased from RMB 13,530,947 thousand at the beginning of Q1 2025 to RMB 12,461,807 thousand at the end of the period, a decline of 7.9%[46] - The company reported a net decrease in cash, cash equivalents, and restricted cash of RMB 1,069,140 thousand during Q1 2025[46] - The company experienced a net cash used in investing activities of RMB 3,158,465 thousand in Q1 2025, compared to RMB 2,378,652 thousand in Q1 2024, reflecting a significant increase of 32.7%[46] Assets and Liabilities - Total current assets increased slightly from RMB 30,353,721 thousand as of December 31, 2024, to RMB 30,570,788 thousand as of March 31, 2025, representing a growth of 0.72%[44] - Total liabilities increased from RMB 29,665,497 thousand as of December 31, 2024, to RMB 30,283,714 thousand as of March 31, 2025, marking a rise of 2.1%[44] - Total assets grew from RMB 92,340,330 thousand as of December 31, 2024, to RMB 93,149,512 thousand as of March 31, 2025, an increase of 0.88%[44] Income Attribution - Net income attributable to ZTO Express (Cayman) Inc. for the three months ended March 31, 2025, was RMB 1,993,247 (US$274,675), up from RMB 1,426,046 in 2024[43] - Net income attributable to ordinary shareholders increased from RMB 1,426,046 thousand in Q1 2024 to RMB 1,993,247 thousand in Q1 2025, reflecting a growth of 39.7%[48] - Basic net earnings per share attributable to ordinary shareholders increased from RMB 1.77 in Q1 2024 to RMB 2.50 in Q1 2025, a growth of 41.2%[48] Non-GAAP Measures - The company utilizes non-GAAP financial measures such as EBITDA and adjusted net income for evaluating operating results[30] - Adjusted EBITDA for Q1 2025 was RMB 3,686,680 thousand, up from RMB 3,660,367 thousand in Q1 2024, indicating a marginal increase of 0.72%[48] Operational Model - The company operates a scalable network partner model to support e-commerce growth in China[39]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________to _________ Commission File Number 001-40524 SHF Holdings, Inc. (Exact name of registrant as specified in Its charter) | Delaware | 86-2409612 | | --- | --- | ...