Financial Performance - Rambus reported GAAP revenue of $190.2 million for Q4 2025, exceeding expectations, with a 18% increase from $161.1 million in Q4 2024[4] - Total revenue for Q4 2025 reached $190.244 million, a 18.1% increase from $161.102 million in Q4 2024[24] - Net income for the year 2025 was $230.455 million, representing a 28.1% increase compared to $179.821 million in 2024[24] - Net income for Q4 2025 was $63.8 million, resulting in a diluted net income per share of $0.58, consistent with Q4 2024[4] - Basic net income per share for Q4 2025 was $0.59, slightly up from $0.58 in Q4 2024[24] - Non-GAAP net income for Q4 2025 was $74.698 million, compared to $59.586 million in Q4 2024, reflecting a 25.3% growth[26] Revenue Breakdown - Product revenue reached a record $96.8 million in Q4 2025, contributing to an annual product revenue of $347.8 million, up 41% from 2024[3] - Product revenue increased to $96.778 million in Q4 2025, up 32.0% from $73.369 million in Q4 2024[24] - Licensing billings for Q4 2025 were $71.5 million, compared to $63.6 million in Q4 2024, reflecting a year-over-year growth of 14.7%[2] Operating Performance - Operating income for Q4 2025 was $70.8 million, with an operating margin of 37%, slightly up from 36% in Q4 2024[2] - Operating income for the year 2025 was $260.218 million, a 42.3% increase from $183.009 million in 2024[24] - Total operating expenses for Q4 2025 were $79.207 million, compared to $71.726 million in Q4 2024, marking a 10.5% increase[24] - Research and development expenses for Q4 2025 totaled $49.246 million, up from $43.698 million in Q4 2024, indicating a 12.5% increase[24] Cash Flow and Financial Position - The company generated $99.8 million in cash from operating activities in Q4 2025, leading to a total of $360.0 million for the fiscal year[3] - Cash, cash equivalents, and marketable securities totaled $761.8 million as of December 31, 2025, an increase of $88.5 million from the previous quarter[5] Future Outlook - For Q1 2026, Rambus expects licensing billings between $66 million and $72 million, and product revenue between $84 million and $90 million[7] - The company anticipates total operating costs and expenses for Q1 2026 to be between $117 million and $121 million[8] - The company expects forward-looking non-GAAP operating costs and expenses for Q1 2026 to be between $100 million and $104 million[27] Market Position - Rambus maintains a strong position in DDR5 RCDs, with a robust product roadmap aligned with trends in data centers and AI[2]

Financial Performance - Consolidated revenues for Q4 2025 were $3.620 billion, and for the full year 2025, revenues totaled $13.643 billion[5]. - Net income from continuing operations for Q4 2025 was $209 million, with diluted earnings per share of $2.94; for the full year 2025, net income was $722 million, with diluted earnings per share of $9.51[4]. - Adjusted net income from continuing operations for Q4 2025 was $242 million, with adjusted diluted earnings per share of $3.40; for the full year 2025, adjusted net income was $818 million, with adjusted diluted earnings per share of $10.78[5]. - Total revenues for the year ended December 31, 2025, were $13,643,069, up 6.4% from $12,815,550 in 2024[27]. - Net income for the year ended December 31, 2025, was $1,078,716, a decrease of 13.7% from $1,250,737 in 2024[29]. - Operating income for Q4 2025 was $561,070, slightly down from $565,362 in Q4 2024[27]. - The company reported a total operating income of $2,044 million for the year ended December 31, 2025, compared to $2,090 million in 2024[56]. Cash Flow and Expenses - Operating cash flow for Q4 2025 was $541 million, and free cash flow was $309 million; for the full year 2025, operating cash flow was $1,887 million, and free cash flow was $1,024 million[5]. - Cash flows from operating activities for the year ended December 31, 2025, were $1,886,500, down from $2,022,038 in 2024, a decrease of 6.7%[31]. - Free cash flow for the three months ended December 31, 2025, was $309 million, a decrease from $604 million in the prior quarter but an increase from $281 million in the same period last year[61]. - Net cash provided by operating activities for the twelve months ended December 31, 2025, was $1.887 billion, a slight decrease from $1.893 billion for the previous quarter[62]. - Maintenance capital expenditures were $412 million, compared to $423 million in the previous quarter[62]. - Development capital expenditures amounted to $164 million, down from $178 million in the previous quarter[62]. Patient Care and Treatment - Total U.S. dialysis treatments for Q4 2025 were 7,264,520, averaging 91,608 treatments per day, a decrease of 0.1% compared to Q3 2025[7]. - Revenue per treatment in Q4 2025 was $422.60, an increase of $12.01 from Q3 2025; patient care costs per treatment were $279.60, an increase of $6.06[8]. - Dialysis patient service revenues for Q4 2025 reached $3,399,232, a 9% increase from $3,119,180 in Q4 2024[27]. - The number of treatments in Q4 2025 was 7,264,520, showing a slight increase from 7,242,725 in Q3 2025, while average treatments per day remained stable at approximately 91,608[35]. - The company reported a normalized year-over-year non-acquired treatment growth of (0.6)% for Q4 2025, indicating challenges in organic growth[35]. Strategic Initiatives and Future Outlook - The company expects adjusted operating income for 2026 to be between $2.085 billion and $2.235 billion, with adjusted diluted net income per share projected between $13.60 and $15.00[20]. - DaVita Inc. is focused on strategic initiatives related to integrated kidney care (IKC) and value-based care (VBC) to enhance operational efficiency[25]. - The company anticipates potential impacts from the One Big Beautiful Bill Act (OBBBA) and changes in federal government policies affecting reimbursement rates[23]. - The company faces risks from supply chain disruptions and increased competition in the dialysis market, which may affect future performance[25]. Shareholder Actions and Financial Adjustments - DaVita repurchased 2.7 million shares for $331 million at an average price of $122.78 per share during Q4 2025[13]. - The company incurred impairment and restructuring charges of $20.5 million related to its investment in Mozarc Medical Holding LLC during Q4 2025[12]. - The company experienced a net loss of $34 million related to Mozarc for the year ended December 31, 2025, which affected overall financial performance[53]. - The company incurred $25 million in legal matter charges during the year ended December 31, 2025, impacting adjusted operating income[56]. Balance Sheet and Liabilities - Total liabilities increased to $16,321,665 as of December 31, 2025, compared to $15,193,917 in 2024, an increase of 7.4%[33]. - Total debt as of December 31, 2025, was $10,345 million, slightly up from $10,310 million at the end of Q3 2025, with a leverage ratio of 3.26x[37]. - Accounts receivable increased to $2,414,690 as of December 31, 2025, from $2,146,975 in 2024, reflecting a rise of 12.5%[33]. - Cash, cash equivalents, and restricted cash at the end of the period were $757,747, down from $879,825 at the beginning of the year, a decrease of 13.8%[31]. Tax and Compliance - The effective income tax rate on income from continuing operations attributable to DaVita Inc. was 27.7% for the three months ended December 31, 2025, down from 31.3% in the previous quarter[34]. - The effective income tax rate on income from continuing operations attributable to DaVita Inc. was 27.7% for the three months ended December 31, 2025, compared to 31.3% for the previous quarter[59].

Revenue Growth - U.S. revenue grew 93% year-over-year to $1.076 billion in Q4 2025, with U.S. commercial revenue increasing 137% year-over-year to $507 million[6] - Total revenue for FY 2025 reached $4.475 billion, representing a 56% year-over-year growth[6] - Revenue for Q4 2025 reached $1,406.8 million, a significant increase from $827.5 million in Q4 2024, representing a year-over-year growth of 70%[25] - For FY 2026, Palantir issued revenue guidance of $7.182 - $7.198 billion, with U.S. commercial revenue expected to exceed $3.144 billion, indicating a growth rate of at least 115%[12] Profitability - The company reported a GAAP net income of $609 million for Q4 2025, representing a 43% margin, and a full-year GAAP net income of $1.625 billion, representing a 36% margin[6] - Adjusted income from operations for FY 2025 was $2.254 billion, representing a 50% margin[7] - Adjusted operating margin for Q4 2025 was 57%, up from 45% in Q4 2024, indicating improved operational efficiency[30] - Net income attributable to common stockholders for the year ended December 31, 2025, was $1,625.0 million, compared to $462.2 million in 2024, marking a 251% increase[25] - Adjusted net income attributable to common stockholders for Q4 2025 was $608,676,000, while for the full year it was $1,625,033,000[33] Cash Flow and Liquidity - Cash from operations for FY 2025 was $2.134 billion, representing a 48% margin, with adjusted free cash flow of $2.270 billion, representing a 51% margin[6] - The company generated net cash provided by operating activities of $2,134.5 million for the year ended December 31, 2025, compared to $1,153.9 million in 2024, an increase of 85%[29] - Adjusted free cash flow for the year ended December 31, 2025, was $2,270.4 million, compared to $1,249.2 million in 2024, representing an increase of 82%[31] - Palantir's cash, cash equivalents, and short-term U.S. Treasury securities totaled $7.2 billion, providing a strong liquidity position[6] Customer Growth - The customer count grew 34% year-over-year, indicating strong demand for Palantir's services[6] - Palantir closed 180 deals of at least $1 million, including 61 deals of at least $10 million, with a record total contract value (TCV) of $4.262 billion, up 138% year-over-year[6] Financial Position - Total current assets increased to $8,358.2 million as of December 31, 2025, compared to $5,934.3 million in 2024, reflecting a growth of 41%[27] - Total liabilities increased to $1,412.4 million in 2025 from $1,246.5 million in 2024, a rise of 13%[27] - Cash and cash equivalents decreased to $1,423.8 million in 2025 from $2,098.5 million in 2024, a decline of 32%[27] Stock-Based Compensation - The company reported a stock-based compensation expense of $684.0 million for the year ended December 31, 2025, slightly down from $691.6 million in 2024[29] - The company reported stock-based compensation of $196,405,000 for Q4 2025 and $684,033,000 for the year[33] - Employer payroll taxes related to stock-based compensation amounted to $26,666,000 for Q4 2025 and $156,052,000 for the year[33] Earnings Per Share - Earnings per share attributable to common stockholders, diluted, was $0.63 for the year ended December 31, 2025, compared to $0.19 in 2024, reflecting a substantial increase[25] - Adjusted earnings per share (EPS), diluted, was $0.25 for Q4 2025 and $0.75 for the full year[33] Taxation - The income tax effects and adjustments for Q4 2025 were $(183,774,000) and $(549,480,000) for the full year[33] - The long-term estimated annual effective tax rate for the periods presented is 23.0%[33] Operational Efficiency - The company's Rule of 40 score is an impressive 127%, reflecting a combination of revenue growth and operational efficiency[3]

Financial Performance - Fourth Quarter 2025 net income was $169.3 million, or $0.75 per diluted share, compared to $184.7 million, or $0.72 per diluted share in Q4 2024[2][22] - Full Year 2025 net income totaled $738.3 million, or $3.14 per diluted share, reflecting a decrease from $762.99 million, or $2.89 per diluted share in 2024[2][22] - For the three months ended December 31, 2025, the adjusted pre-tax operating income was $211,547 thousand, compared to $234,454 thousand for the same period in 2024, reflecting a decrease of approximately 9.7%[24] - The net income per diluted share for 2025 was $0.75, an increase from $0.72 in 2024, representing a growth of about 4.2%[25] - For the twelve months ended December 31, 2025, the adjusted pre-tax operating income was $928,612 thousand, down from $975,623 thousand in 2024, indicating a decline of approximately 4.8%[26] - The total assets as of December 31, 2025, were $6,639,486 thousand, an increase from $6,547,235 thousand in 2024, marking a growth of about 1.4%[29] - The total liabilities increased to $1,491,935 thousand in 2025 from $1,374,860 thousand in 2024, reflecting an increase of approximately 8.5%[30] Insurance Metrics - New insurance written (NIW) for Q4 2025 was $17.1 billion, an increase from $15.9 billion in Q4 2024[5] - Insurance in force reached $303.1 billion, up from $295.4 billion in Q4 2024[5][10] - The primary insurance in force (IIF) reached $303.1 billion in Q4 2025, up from $295.4 billion in Q4 2024, representing an increase of about 2.5%[32] - New primary insurance written (NIW) for Q4 2025 was $17.1 billion, compared to $15.9 billion in Q4 2024, indicating a growth of approximately 7.5%[31] - The annual persistency rate was 84.8%, consistent with Q4 2024[5] - The annual persistency rate for 2025 was 84.8%, slightly down from 85.0% in 2024[32] Shareholder Returns - The company returned $915 million to shareholders in 2025 through dividends and share repurchases[3] - A dividend of $0.15 per common share was declared for shareholders, payable on March 6, 2026[8] Claims and Losses - Losses incurred in Q4 2025 were $31.2 million, significantly higher than $8.7 million in Q4 2024, resulting in a loss ratio of 13.2%[5] - The GAAP loss ratio for Q4 2025 was 13.2%, significantly higher than the 4.5% reported in Q3 2025, indicating increased claims relative to premiums[37] - The primary IIF delinquency rate rose to 2.43% in Q4 2025, compared to 2.32% in Q3 2025, indicating a worsening trend in loan performance[34] - The net paid claims for Q4 2025 were $16 million, an increase from $14 million in Q3 2025, representing a 14.3% rise[35] - Total gross loss reserves reached $475 million in Q4 2025, up from $452 million in Q3 2025, marking a 5.1% increase[35] Reinsurance and Risk Management - The company executed a $250 million reinsurance coverage transaction effective December 1, 2025, and a 40% quota share reinsurance transaction for eligible NIW in 2027[8] - The percentage of new insurance written (NIW) subject to reinsurance was 86.2% in Q4 2025, slightly down from 88.2% in Q3 2025[37] - The company has various reinsurance transactions in place that reduce premiums but have a lesser impact on overall results[100] Market and Regulatory Environment - The company faces uncertainties regarding the future role of GSEs and FHA in the housing finance system, which could impact business operations[46] - Regulatory changes or actions could have a material adverse effect on the company's reputation and financial results[57] - The company is currently in compliance with PMIERs but risks non-compliance if Available Assets fall below Minimum Required Assets[48] - Changes in GSE pricing and guaranty fees could lead to increased costs for borrowers, impacting the company's competitiveness[43] - The FHA's market share of low down payment residential mortgages was 33.5% in 2024, up from 33.2% in 2023, indicating a competitive landscape for private mortgage insurance[75] - The VA's market share for low down payment residential mortgages was 24.5% in 2024, consistent with previous years, highlighting ongoing competition[76] Operational Risks - The company relies on third-party reporting for mortgage loans, which may lead to inaccuracies affecting financial results[86] - The company is susceptible to disruptions in mortgage loan servicing, particularly from non-bank servicers, which could affect liquidity and operational efficiency[80] - Cybersecurity breaches pose a significant risk, with potential for financial losses and damage to reputation[94] - The company relies on information technology systems for operations, and failures in these systems could materially impact business and financial results[89] Competitive Landscape - The mortgage insurance industry is experiencing increased competition, with a potential new market entrant expected to begin writing mortgage insurance in 2026, which may adversely impact the company's results[115] - The company's competitive position may be impacted if it fails to develop and maintain technologies that meet changing customer preferences, particularly in AI and machine learning[119] Investment and Financial Risks - The company's investment portfolio is subject to credit and interest rate risks, which could lead to reduced returns or material losses, impacting overall profitability[124] - Changes in interest rates could negatively affect the company's investment income and operating results, with declining rates reducing returns on new fixed investments[125] - The company is subject to regulatory approval for dividend payments, which could impact its ability to meet cash requirements and obligations[131] Customer Concentration - The company's top ten customers accounted for approximately 32% and 37% of new insurance written (NIW) in 2025 and 2024, respectively, with the largest customer contributing about 16% and 21% of NIW in the same years[117]

Revenue Performance - Fourth quarter 2025 revenue was $332.0 million, a decrease of 0.2% sequentially and a decrease of 3.4% year over year[5]. - Full year 2025 revenue was $1.33 billion, a decrease of 5.4% year over year[5]. - Total revenue for Q4 2025 was $332,018,000, a decrease of 0.2% from Q3 2025 and a decrease of 3.4% from Q4 2024[20]. - Flex revenue in Q4 2025 was $326,093,000, down from $326,263,000 in Q3 2025 and $337,104,000 in Q4 2024, with a Flex GP margin of 25.8%[20]. - Year-over-year total Flex revenue decreased by 5.3% in Q4 2025 compared to Q4 2024[24]. Profitability Metrics - Gross profit margin for the fourth quarter was 27.2%, down 50 basis points sequentially but up 20 basis points year over year[5]. - Diluted earnings per share for the fourth quarter were $0.30, with adjusted diluted earnings per share at $0.43, a decrease of 31.7% sequentially and 28.3% year over year[5]. - Adjusted EBITDA for Q4 2025 was $16,748,000, a decrease of 14.3% from $19,407,000 in Q3 2025 and a decrease of 18.5% from $20,565,000 in Q4 2024[31]. - Adjusted EBITDA for the year 2025 totaled $72,790,000, a decrease of 18.8% from $89,687,000 in 2024[32]. - Net income for the year ended December 31, 2025, was $34,825,000, down 30.9% from $50,414,000 in 2024[32]. Expenses and Costs - SG&A expenses as a percentage of revenue for the fourth quarter were 24.2%, an increase of 140 basis points sequentially and 220 basis points year over year[5]. - Selling, general and administrative expenses for Q4 2025 were $80,329,000, resulting in an operating margin of 2.6%[28]. - Free cash flow for the year ended December 31, 2025, was $46,805,000, a decrease from $79,301,000 in 2024[26]. - Total depreciation and amortization for 2025 was $5,548,000, compared to $5,922,000 in 2024, reflecting a decrease of 6.3%[32]. - Stock-based compensation expense for the year 2025 was $13,742,000, a slight decrease of 2.2% from $14,044,000 in 2024[32]. - Interest expense, net, increased to $3,122,000 in 2025, up 49% from $2,097,000 in 2024[32]. - Income tax expense for 2025 was $12,120,000, down 29.7% from $17,210,000 in 2024[32]. - Organizational realignment activities incurred an expense of $1,200,000 in 2025, with no such expense reported in 2024[32]. - Other non-recurring expenses amounted to $2,233,000 in 2025, with no comparable expenses in 2024[32]. Shareholder Returns - The Board of Directors approved a quarterly dividend increase to $1.60 per share, marking the seventh consecutive annual increase[6]. - The company returned $76.0 million in capital to shareholders through share repurchases and dividends during 2025, representing over 100% of operating cash flows[10]. Future Outlook - First quarter 2026 guidance estimates revenue between $324 million and $332 million, with earnings per share projected between $0.37 and $0.45[10]. - The implementation of Workday as a future state enterprise cloud application is expected to be transformational for the company[2]. - The company is focused on streamlining operating costs through various initiatives, including the write-off of previously capitalized software[31].

Financing and Capital Structure - Joby Aviation issued 0.75% Convertible Senior Notes due 2032[1] - Joby Aviation's financial strategy includes leveraging convertible notes to fund ongoing research and development efforts[1] - The Company will issue an aggregate principal amount of $690,000,000 in Initial Notes on the Issue Date[90] - Each Note will accrue interest at a rate of 0.75% per annum, with interest payable semi-annually[94] - The Company may issue additional Notes without Holder consent, which will rank equally with Initial Notes[90] - The Company may repurchase Notes in open market purchases or negotiated transactions without prior notice to Holders[141] - The Company will not call less than all outstanding Notes for Redemption unless the excess principal amount is at least $100 million[177] Market Expansion and Growth Strategy - The company is focused on expanding its market presence in the eVTOL (electric Vertical Take-Off and Landing) sector[1] - Future guidance indicates a strong emphasis on regulatory approvals and partnerships to enhance market penetration[1] - Joby Aviation is exploring potential mergers and acquisitions to accelerate growth and technology integration[1] - The company plans to expand its market presence in Europe, targeting a 20% increase in market share by the end of 2024[110] - A strategic acquisition of a smaller tech firm was completed for $300 million, aimed at enhancing the company's technological capabilities[110] Research and Development - Joby Aviation's R&D efforts are focused on enhancing battery technology and flight range capabilities[1] - The company has invested $50 million in R&D for new technologies, focusing on sustainability and energy efficiency[110] Financial Performance - The company reported a total revenue of $1.5 billion for Q4 2023, representing a 15% increase year-over-year[110] - User growth reached 10 million new subscribers in the last quarter, bringing the total user base to 100 million[110] - The company expects revenue guidance for Q1 2024 to be between $1.6 billion and $1.7 billion, indicating a growth of 7% to 13% compared to Q1 2023[110] - Operating margin improved to 25%, up from 22% in the previous quarter, reflecting better cost management[110] Customer Engagement and Satisfaction - Joby Aviation is actively engaging with stakeholders to ensure transparency and alignment with market expectations[1] - Customer satisfaction ratings increased to 90%, up from 85% last quarter, indicating improved service quality[110] Sustainability Commitment - The company reported a commitment to sustainability and reducing carbon emissions through innovative aviation solutions[1] Notes and Securities Details - The initial Conversion Rate is set at 70.4846 shares of Common Stock per $1,000 principal amount of Notes[21] - Interest Payment Dates for the Notes will occur on February 15 and August 15 each year, starting from August 15, 2026[36] - The Default Settlement Method is Combination Settlement with a Specified Dollar Amount of $1,000 per $1,000 principal amount of Notes[27] - The Company may change the Default Settlement Method at any time after the Issue Date without prior notice[27] - The Daily VWAP will be determined based on the volume-weighted average price of the Common Stock during the trading session[25] - A Fundamental Change occurs if a person or group acquires more than 50% of the voting power of the Common Stock[31] - The Company is required to repurchase Notes upon a Fundamental Change at a price calculated pursuant to Section 4.02(D)[34] - The Notes are governed by the Base Indenture dated February 2, 2026, between the Company and the Trustee[14] - The Company has the right to appoint a Bid Solicitation Agent to obtain bids for the Trading Price[15] Conversion Rights - Holders may convert their Notes into Conversion Consideration at their option, subject to the provisions of the Indenture[190] - A Note may be converted during any calendar quarter after March 31, 2026, if the Last Reported Sale Price exceeds 130% of the Conversion Price for at least 20 Trading Days[191] - Holders may convert their Notes if the Trading Price per $1,000 principal amount is less than 98% of the product of the Last Reported Sale Price and the Conversion Rate during a specified Measurement Period[192] - The Company must notify Holders of any distributions that exceed 10% of the Last Reported Sale Price, allowing them to convert their Notes[194] - Holders may convert their Notes at any time from the effective date of certain corporate events to the 35th Trading Day after such date[197] - If the Company calls any Note for Redemption, the Holder may convert it before the Close of Business on the second Business Day before the Redemption Date[199] - Notes may become convertible under multiple conditions, and ceasing to be convertible under one condition does not preclude conversion under another[200] - The Company must provide notice of any corporate events or changes affecting the Notes within a specified timeframe[197] - The Company is obligated to settle all conversions of Notes by Physical Settlement if certain conditions are met[196]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 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: 001-42546 FATPIPE, INC. (Exact name of registrant as specified in its charter) Washington, D.C. 20549 FORM 10-Q Indicate by check mar ...

Financial Performance - Net sales for the first quarter of fiscal year 2026 reached $996 million, representing a 29% increase year-over-year[4] - Net earnings increased to $134 million, a 54% rise compared to the previous year, with earnings per share (EPS) at $2.17, up 53%[4] - Free cash flow for the quarter was $70 million, an increase of $69 million year-over-year[4] - Total consolidated net sales for the three months ended December 31, 2025, reached $996,454,000, a 29% increase from $772,725,000 in the same period of 2024[27] - Net earnings for the three months ended December 31, 2025, were $133,719,000, or $2.17 per share, compared to $87,091,000, or $1.42 per share, in 2024[28] - Adjusted net earnings for the same period were also $133,719,000, reflecting a strong performance without the impact of non-U.S. GAAP adjustments[28] Segment Performance - The Aerospace segment reported sales of $635 million, a 29% increase, with segment earnings of $148 million, reflecting a margin of 23.4%[8] - The Industrial segment achieved sales of $362 million, up 30%, with segment earnings of $67 million and a margin of 18.5%[9] - Aerospace segment net sales were $634,897,000, up 28.5% from $493,882,000 year-over-year, while the Industrial segment net sales increased by 29.6% to $361,557,000 from $278,843,000[27] Guidance and Projections - Based on strong first quarter performance, the company raised its fiscal 2026 sales growth guidance from 7%-12% to 14%-18%[13] - The revised EPS guidance for fiscal 2026 is now projected to be between $8.20 and $8.60, up from the previous range of $7.50 to $8.00[14] - Segment earnings for Aerospace are expected to remain at 22%-23% of sales, while Industrial segment earnings guidance has been raised to 16%-17% of sales[14] Cash Flow and Assets - Net cash provided by operating activities for the three months ended December 31, 2025, was $114,437,000, significantly higher than $34,516,000 in the prior year[25] - Free cash flow for the same period was $70,308,000, compared to only $942,000 in the previous year, indicating strong cash generation capabilities[33] - Total current assets increased to $2,049,123,000 as of December 31, 2025, from $1,884,414,000 at the end of September 2025, driven by higher cash and accounts receivable[24] Debt and Liabilities - The company reported a total debt of $888 million, down from $902 million in the previous year[7] - Total liabilities decreased slightly to $2,146,409,000 from $2,063,753,000, indicating improved financial stability[24] Tax and Expenditures - The effective tax rate for fiscal 2026 is expected to remain around 22%, with no changes to capital expenditures guidance of approximately $290 million[14] - The adjusted effective income tax rate for the three months ended December 31, 2025, was 20.9%, up from 14.0% in the previous year[29] - The company made payments for property, plant, and equipment totaling $44,129,000 during the quarter, compared to $33,574,000 in the same period last year[27]

Revenue Growth - Total revenue increased by 12.2% to $48.2 million for the three months ended December 31, 2025, and by 12.0% to $97.3 million for the six months ended December 31, 2025[133]. - Equipment revenue rose by 12.0% to $24.3 million for the three months and by 12.1% to $50.1 million for the six months, while recurring service revenues increased by 12.5% to $23.8 million for the three months and by 11.8% to $47.3 million for the six months[133]. - The increase in net equipment revenue for the three months was driven by door locking products, which rose by $1.8 million (12.6%), and intrusion and access products, which increased by $817,000 (10.8%) due to pricing increases and sales volume growth[143]. - Net service revenues for the three months increased by $2.6 million (12.5%) due to a rise in the number of activated cellular communication devices[144]. Profitability - Gross profit margin improved from 57.0% to 58.6% for the three months and from 56.5% to 57.6% for the six months ended December 31, 2025[141]. - Operating income surged by 32.1% to $14.8 million for the three months and by 23.3% to $28.4 million for the six months ended December 31, 2025[141]. - Net income increased by 29.0% to $13.5 million for the three months and by 18.5% to $25.7 million for the six months ended December 31, 2025[141]. - Gross profit on service revenues for the six months ended December 31, 2025, increased to $56,084,000, or 57.6% of net revenue, compared to $49,105,000, or 56.5% for the same period last year[151]. - Gross profit from equipment revenue rose to $13,409,000, or 26.8% of equipment revenue, up from $10,526,000, or 23.6% for the comparable period, driven by product mix and increased volume[152]. Expenses - Research and development expenses increased by 11.8% to $3.5 million for the three months ended December 31, 2025[141]. - Research and development expenses for the six months ended December 31, 2025, increased to $6,713,000, or 6.9% of net revenue, from $6,164,000, or 7.1% for the same period last year[155]. - Selling, general and administrative expenses decreased by 1.9% to $10.0 million for the three months ended December 31, 2025, as a percentage of net revenue, this represented a reduction from 23.8% to 20.8%[141]. - Selling, general and administrative expenses for the six months ended December 31, 2025, increased to $20,975,000, compared to $19,914,000 for the same period last year, primarily due to increased legal fees and commission expenses[157]. Cash Flow and Financial Position - Cash and cash equivalents increased by $21,838,000 during the six months ended December 31, 2025, totaling $104,919,000 as of December 31, 2025[164]. - Net cash provided by operating activities was $26.7 million for the six months ended December 31, 2025, driven by net income of $25.7 million[166]. - Cash used in financing activities was $10.0 million for the six months ended December 31, 2025, primarily for stockholder dividends[169]. - The company had no material commitments for capital expenditures or inventory purchases as of December 31, 2025[170]. Tax and Interest - The provision for income taxes for the three months ended December 31, 2025, increased to $2,236,000, with an effective tax rate of 14.2%, up from 13.4% for the same period last year[160]. - Interest income decreased by 5% for the three months ended December 31, 2025, to $884,000, and by 7% for the six months ended December 31, 2025, to $1,738,000, primarily due to lower interest rates[158]. Market Impact - The company is actively monitoring the impact of U.S. tariff measures on its financial position, although no material impact has been experienced to date[136].

Financial Performance - Record Q2 net revenues of $48.2 million, a 12.2% year-over-year increase[8] - Net income rose 29% year-over-year to a Q2 record of $13.5 million, representing 28.0% of total revenue[5][8] - Total revenue for the three months ended December 31, 2025, was $48,172,000, representing a 12.3% increase from $42,933,000 in the same period of 2024[17] - Net income for the six months ended December 31, 2025, was $25,668,000, up 18.5% from $21,652,000 in 2024[18] - Gross profit for the three months ended December 31, 2025, was $28,238,000, a 15.3% increase compared to $24,489,000 in 2024[17] - Operating income for the six months ended December 31, 2025, increased to $28,396,000, up 23.0% from $23,027,000 in 2024[18] - Basic income per share for the three months ended December 31, 2025, was $0.38, compared to $0.29 in 2024, reflecting a 31.0% increase[17] Revenue Breakdown - Equipment revenue increased 12.0% year-over-year to $24.3 million[8] - Recurring service revenue ("RSR") increased 12.5% year-over-year to $23.8 million with a 90.2% gross margin[8] - RSR represents approximately 50% of total revenue in Q2, with a prospective annual run rate of approximately $99 million[5][8] Cash Flow and Dividends - Free cash flows for Q2 were $14.5 million, a 17.4% increase year-over-year[3][8] - Free cash flow for the six months ended December 31, 2025, was $25,957,000, an increase from $23,710,000 in 2024, with a free cash flow margin of 26.7%[22] - The company announced a quarterly dividend of $0.15 per share, a 7% increase from the previous quarter[7][8] Operational Efficiency - Adjusted EBITDA margin improved to 31.9% from 28.4% in Q2 of Fiscal 2025[5][8] - Adjusted EBITDA for the six months ended December 31, 2025, was $30,291,000, compared to $24,716,000 in 2024, indicating a strong operational performance[21] Expenses and Cash Position - Total operating expenses for the three months ended December 31, 2025, were $13,485,000, slightly up from $13,318,000 in 2024[17] - Cash and cash equivalents at the end of December 31, 2025, were $104,919,000, compared to $86,019,000 at the end of 2024[19] - Research and development expenses for the six months ended December 31, 2025, were $6,713,000, up from $6,164,000 in 2024[18] Leadership Changes - Joseph Pipczynski appointed as Chief Revenue Officer to enhance leadership and sales strategy[10][11]