Financial Performance - Sales revenue for Q4 2025 decreased by 12% to $1,973 million compared to Q4 2024, driven by an 11% lower sales volume/mix and a 2% decrease in selling prices[3]. - Adjusted EBIT for FY 2025 was $930 million, down from $1,298 million in FY 2024, reflecting challenges in sales volume and price-cost dynamics[3]. - Sales revenue for FY 2025 decreased by 7% to $8,752 million, primarily due to a 6% lower sales volume/mix and a 1% decrease in selling prices[15]. - Eastman reported Q4 2025 sales of $1,973 million, a decrease of 12% compared to Q4 2024 sales of $2,245 million[44]. - For the full year 2025, Eastman generated revenue of approximately $8,752 million, down from $9,382 million in 2024, reflecting a 7% decline[44]. - Gross profit for Q4 2025 was $338 million, down from $554 million in Q4 2024, indicating a significant reduction in profitability[44]. - The company’s net earnings for Q4 2025 were $105 million, compared to $331 million in Q4 2024, representing a decline of 68%[44]. - For the full year 2025, GAAP net earnings were $474 million, translating to $4.10 per diluted share, compared to $905 million and $7.67 per share in 2024[73]. - Non-GAAP net earnings for 2025 reached $627 million, with a 13% effective tax rate, compared to $931 million in 2024, resulting in adjusted diluted earnings per share of $5.42[73]. - Net earnings for Q4 2025 were $105 million, a decrease from $331 million in Q4 2024, while total net earnings for the twelve months were $475 million compared to $908 million in the previous year[79]. Cash Flow and Investments - Operating cash flow approached $1 billion in 2025, a decrease from approximately $1.3 billion in 2024, indicating strong cash generation despite a challenging environment[5][26]. - Net cash provided by operating activities in Q4 2025 was $502 million, down from $540 million in Q4 2024, with total cash provided for the year at $970 million compared to $1,287 million in 2024[79]. - The company experienced a net cash used in investing activities of $47 million in Q4 2025, compared to $132 million in Q4 2024, with total cash used for the year at $462 million versus $534 million in 2024[79]. - Cash and cash equivalents at the end of Q4 2025 were $566 million, down from $837 million at the end of Q4 2024[79]. - The company reported a net change in cash and cash equivalents of $77 million in Q4 2025, a decrease from $215 million in Q4 2024, resulting in a total cash change of $(271) million for the year compared to $289 million in 2024[79]. Cost Management and Savings - Cost reduction initiatives exceeded targets, achieving approximately $100 million in savings against a goal of over $75 million[5]. - For 2026, the company plans to increase cost structure reduction actions to a range of $125 million to $150 million, building on previous initiatives[27]. - The company incurred asset impairments and restructuring charges of $54 million in Q4 2025, compared to $10 million in Q4 2024[59]. - The company incurred $96 million in asset impairments and restructuring charges in 2025, impacting net earnings significantly[73]. Segment Performance - Advanced Materials segment sales decreased by 9% in Q4 2025 compared to Q4 2024, with sales of $656 million down from $720 million[46]. - Chemical Intermediates segment experienced a 17% decline in sales in Q4 2025, with revenue of $418 million compared to $503 million in Q4 2024[46]. - The Fibers segment saw a significant 27% drop in sales in Q4 2025, with revenue of $234 million compared to $321 million in Q4 2024[46]. - The Advanced Materials segment's EBIT was $41 million in Q4 2025, a decrease from $107 million in Q4 2024, with a full year EBIT of $319 million compared to $442 million in 2024[57]. - The Additives & Functional Products segment achieved EBIT of $94 million in Q4 2025, down from $128 million in Q4 2024, with a full year EBIT of $512 million, up from $487 million[57]. - The Chemical Intermediates segment reported a loss of $50 million in Q4 2025, compared to a profit of $20 million in Q4 2024, with a full year loss of $60 million versus a profit of $101 million in 2024[57]. - The Fibers segment's EBIT was $47 million in Q4 2025, down from $103 million in Q4 2024, with a full year EBIT of $283 million compared to $454 million in 2024[57]. Future Outlook - The company expects first-quarter 2026 adjusted EPS to be between $1.00 and $1.20, driven by improved volume/mix and reduced shutdown costs[28]. - The company anticipates improved manufacturing utilization and fewer shutdowns in 2026, alongside potential tailwinds from foreign currency exchange rates[27].

"Company") today announced financial results for its fiscal 2026 second quarter ended December 25, 2025. Second Quarter Summary CEO Commentary "We delivered strong top-line growth and achieved an approximately 32% increase in diluted earnings per share for the quarter, driven by executing our ongoing strategic initiatives of disciplined cost management, operational efficiencies and strategic pricing actions. While these results are encouraging, we continue to navigate headwinds from shifting consumer behavi ...

Financial Performance - Net loss for the first quarter of fiscal 2026 was $32.6 million, resulting in a diluted loss per share of $1.13, which included a litigation-related charge that reduced EPS by $0.23 [4] - Adjusted EBITDA for the quarter was a loss of $11.2 million, compared to a profit of $23.0 million in the same quarter last year [3] - Total revenue for the three months ended December 31, 2025, was $363.491 million, a decrease of 22.5% from $468.953 million in the same period of 2024 [21] - Gross profit for the same period was $37.204 million, down 48.3% from $72.078 million year-over-year [21] - The company reported a net loss of $32.597 million for Q1 2025, compared to a net income of $3.130 million in Q1 2024 [21] Homebuilding Metrics - Homebuilding revenue decreased by 21.9% year-over-year to $359.7 million, driven by a 22.8% decline in home closings to 700 homes, partially offset by a 1.2% increase in average selling price (ASP) to $513.9 thousand [4] - Total closings decreased to 700 units in Q1 2025 from 907 units in Q1 2024, representing a decline of 22.8% [25] - New orders, net of cancellations, fell to 763 units in Q1 2025 from 932 units in Q1 2024, a decrease of 18.1% [25] - Net new orders fell to 763, an 18.1% decrease from 932 in the prior year quarter, with a cancellation rate of 18.3%, up from 16.5% [5] - The backlog dollar value was $573.3 million, down 29.7% from $816.0 million a year ago, with backlog units decreasing by 33.1% to 1,008 homes [6] - The aggregate dollar value of homes in backlog was $573.3 million as of December 31, 2025, down 29.8% from $816.0 million in 2024 [25] Margins and Costs - The gross margin for homebuilding was 10.4%, down 480 basis points from the previous year, with a margin of 14.0% when excluding impairments and amortized interest [8] - Homebuilding gross profit margin (GAAP) for Q1 2025 was 10.4%, compared to 15.2% in Q1 2024 [27] - The company aims to improve margins through construction cost reductions and selective asset sales, while also focusing on community count and deleveraging goals for 2027 [2] Debt and Capitalization - Total debt to total capitalization ratio increased to 48.4% from 46.5% a year ago, while net debt to net capitalization ratio rose to 45.6% from 44.5% [13] - Total debt increased to $1.125 billion as of December 31, 2025, from $1.029 billion at the end of September 2025 [23] - Total debt (GAAP) increased to $1,125,055 thousand in 2025 from $1,071,290 thousand in 2024, representing a growth of approximately 5.0% [30] - Stockholders' equity (GAAP) decreased to $1,200,248 thousand in 2025 from $1,234,048 thousand in 2024, a decline of about 2.7% [30] - Total capitalization (GAAP) rose to $2,325,303 thousand in 2025, up from $2,305,338 thousand in 2024, indicating an increase of around 0.9% [30] - Net debt (Non-GAAP) increased to $1,004,298 thousand in 2025 compared to $990,911 thousand in 2024, reflecting a rise of approximately 1.3% [30] - Net capitalization (Non-GAAP) decreased to $2,204,546 thousand in 2025 from $2,224,959 thousand in 2024, a decrease of about 0.9% [30] Cash and Inventory - Cash and cash equivalents decreased to $120.757 million from $214.705 million in the previous quarter [23] - Inventory increased to $2.141 billion as of December 31, 2025, compared to $2.029 billion at the end of September 2025 [23] - Land acquisition and development spending was $180.7 million, a decrease of 14.5% from $211.3 million in the prior year [10] Stock Repurchase - The company repurchased $15.1 million of its outstanding common stock at an average price of $21.72 per share during the quarter [11]

Financial Performance - Net income for Q4 2025 was $108.4 million, or $1.59 per diluted share, up from $94.4 million, or $1.37 per diluted share in Q4 2024[3] - Full year 2025 net income reached $412.2 million, or $6.00 per diluted share, compared to $358.7 million, or $5.19 per diluted share in 2024, driven by a $87.7 million, or 10.3% increase in net interest income[4] - Net income for the three months ended December 2025 was $108,356,000, compared to $87,935,000 for the same period in 2024, representing a year-over-year increase of 23.2%[27] - Adjusted net income for the twelve months ended December 2025 was $411,625,000, up from $346,640,000 in 2024, reflecting a growth of 18.7%[27] - Net income for the twelve months ended December 2025 was $412,154,000, compared to $358,685,000 in 2024, showing an increase of 14.9%[29] - Net income available to common shareholders for Q4 2025 was $108,356,000, compared to $106,029,000 in Q3 2025, reflecting a growth of 2.2%[44] - Net income for the Banking Division in Q4 2025 reached $83,224,000, an increase of 10.9% compared to $75,065,000 in Q3 2025[52] - Net income for the company in 2025 was $412,154,000, an increase of 15% from $358,685,000 in 2024[52] Earnings and Shareholder Value - Basic earnings per share for the three months ended December 2025 was $1.59, compared to $1.28 for the same period in 2024, an increase of 24.2%[27] - Diluted earnings per common share for Q4 2025 was $1.59, up from $1.37 in Q4 2024, reflecting a growth of 16.1%[29] - The book value per share at the end of December 2025 was $59.92, compared to $54.32 at the end of December 2024, representing an increase of 10.5%[27] - Tangible book value per share at the end of December 2025 was $44.18, up from $38.59 in December 2024, marking a growth of 14.5%[46] Asset and Deposit Growth - Total assets increased to $27.52 billion at December 31, 2025, up from $26.26 billion at December 31, 2024[16] - Total deposits increased by $653.5 million, or 3.0%, to $22.38 billion at December 31, 2025[17] - Total deposits increased to $22,375,995,000 in December 2025 from $21,722,448,000 in December 2024, representing a rise of 3.0%[31] - Total earning assets increased to $25,399,767 thousand in December 2025, up from $24,956,298 thousand in September 2025, representing a growth of 1.77%[37] - Total deposits rose to $22,397,329 thousand in December 2025, compared to $21,898,464 thousand in September 2025, indicating an increase of 2.28%[37] Income and Expense Analysis - Total interest income for Q4 2025 was $358,063,000, an increase from $346,363,000 in Q4 2024, representing a growth of 3.9% year-over-year[29] - Noninterest income decreased by $14.4 million, or 18.9%, in Q4 2025, totaling $61.8 million compared to $76.3 million in Q3 2025[11] - Noninterest income for Q4 2025 totaled $61,827,000, a decrease from $68,959,000 in Q4 2024, indicating a decline of 10.3% year-over-year[29] - Total noninterest expense for the twelve months ended December 2025 was $603,950,000, a slight decrease from $607,794,000 in 2024[29] - Total noninterest expense for the Banking Division in Q4 2025 was $103,420,000, a decrease of 9.2% from $113,973,000 in Q3 2025[52] Efficiency and Profitability Metrics - Return on average assets (ROA) for Q4 2025 was 1.57%, with a full year ROA of 1.54%[6] - The return on average assets for the three months ended December 2025 was 1.57%, up from 1.36% in the same period of 2024, indicating improved operational efficiency[27] - The efficiency ratio for the three months ended December 2025 was 46.59%, a decrease from 52.83% in the same period of 2024, showing enhanced cost management[27] - Adjusted efficiency ratio for December 2025 improved to 46.59%, compared to 52.26% in December 2024, indicating enhanced operational efficiency[46] - The efficiency ratio for the twelve months ended December 2025 was 50.00%, down from 53.20% in December 2024, indicating improved cost management[46] Loan and Credit Quality - The allowance for loan losses remained stable at 1.62% of loans, with a net charge-off ratio of 26 basis points for Q4 2025[19] - The provision for credit losses was $16,601 thousand in December 2025, compared to $11,176 thousand in September 2025, marking an increase of 48.5%[33] - Non-performing assets totaled $120,472 thousand in December 2025, up from $109,428 thousand in September 2025, indicating a rise of 9.5%[33] - The net charge-offs as a percentage of average loans (annualized) increased to 0.26% in December 2025 from 0.14% in September 2025[33] - The total allowance for credit losses remained stable at $401,558 thousand in December 2025, consistent with the previous quarter[33] Market and Trading Activity - The average daily trading volume for the three months ended December 2025 was 448,341 shares, compared to 432,964 shares in the same period of 2024, indicating increased market activity[27] - The market data showed a high intraday price of $78.99 in December 2025, compared to $74.56 in December 2024, indicating a positive market perception[27]

Financial Performance - Net revenue for the second quarter of fiscal 2026 was $369.3 million, an increase of $98.5 million or 36.4% year-over-year[207] - GAAP net loss was $48.1 million, a decrease of $57.2 million or 628.6% year-over-year[207] - Non-GAAP net income reached $51.5 million, up $22.1 million or 75.2% year-over-year[207] - Non-GAAP diluted EPS was $0.22, an increase of $0.09 or 69.2% year-over-year[207] - Total net revenue increased by $98.5 million, or 36.4%, for the three months ended December 27, 2025, compared to the same period a year ago[218] - Total net revenue increased by $159.4 million, or 31.3%, for the six months ended December 27, 2025, compared to the same period a year ago[219] - Product revenues increased by $91.6 million, or 40.6%, for the three months ended December 27, 2025, driven by volume increases in NSE and OSP[220] - Product revenues increased by $151.5 million, or 35.8%, for the six months ended December 27, 2025, driven by volume increases in NSE and OSP[221] - Service revenues increased by $6.9 million, or 15.3%, for the three months ended December 27, 2025, driven by a volume increase in NSE[222] - Service revenues increased by $7.9 million, or 9.2%, for the six months ended December 27, 2025, driven by a volume increase in NSE[223] Acquisitions and Contributions - The acquisition of Spirent Communications contributed net revenues of $43.0 million, while Inertial Labs added $21.1 million[202] - The acquisitions of Spirent's HSE and CE business and Inertial Labs contributed $43.0 million and $21.1 million, respectively, during the three months ended December 27, 2025[218] Margins and Expenses - GAAP operating margin was 3.1%, down 510 basis points year-over-year, while non-GAAP operating margin improved to 19.3%, up 440 basis points[207] - Gross margin decreased by 2.4 percentage points to 57.0% for the three months ended December 27, 2025, primarily due to increased amortization of intangibles[230] - Research and Development (R&D) expense increased by $13.8 million, or 26.5%, during the three months ended December 27, 2025, driven by costs from recent acquisitions[233] - Selling, General and Administrative (SG&A) expense rose by $42.8 million, or 50.8%, during the three months ended December 27, 2025, largely due to acquisition-related costs[236] - Amortization of acquired technologies increased by $9.2 million, or 278.8%, during the three months ended December 27, 2025, due to intangibles from recent acquisitions[229] Future Outlook - The company expects continued growth in the NSE segment driven by end market demand and acquisitions[204] - The company plans to invest in secular trends to drive growth and expand its total addressable market (TAM)[206] - The company expects to face industry and market risks, including uncertainty around customer procurement decisions and the adoption of 5G technology[224] - Pricing pressures and competition from Asia-based competitors may affect revenues and profitability[225] Cash Flow and Financing - Cash provided by operating activities was $73.5 million, with a net loss of $69.5 million adjusted for non-cash charges totaling $162.9 million[274] - Cash used in investing activities totaled $412.6 million, primarily for the acquisition of Spirent's HSE and CE business[275] - Cash provided by financing activities was $680.6 million, mainly from a $600 million Term Loan B issuance[276] Pension and Liabilities - The pension plans in the U.K. and India are fully funded, while the German plans are unfunded, resulting in an under-funding of $50.9 million as of December 27, 2025[282] - The fair value of pension plan assets increased approximately 1.2% since June 28, 2025[282] - A 50-basis point change in the discount rate would result in a corresponding increase or decrease in the post-retirement benefit obligation (PBO) of approximately $4.0 million[288] - The company is responsible for a non-pension post-retirement benefit obligation of $0.3 million from a past acquisition[283] - The fair value of contingent purchase consideration liabilities is remeasured at each reporting period, with significant judgment involved in the estimates[287] Market and Geographic Information - The company operates in three geographic regions: Americas, Asia-Pacific, and EMEA, with net revenue assigned to the region where products are initially shipped[226] - Net revenue from customers outside the Americas represented 53.7% of total net revenue during the three months ended December 27, 2025, compared to 57.1% in the same period of the previous year[227] Risk Management - The company's market risk related to foreign exchange and interest rates has not changed materially since the last annual report[289] - The accounting estimates used in the financial statements are based on historical experience and reasonable assumptions, but actual results may differ materially[286] - Recent accounting pronouncements may affect the consolidated financial statements, as detailed in the relevant note[285]

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 December 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-37709 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the ...

Exhibit 99.1 PCB Bancorp Reports Earnings for Q4 2025 and Full Year 2025 Los Angeles, California - January 29, 2026 - PCB Bancorp (the "Company") (NASDAQ: PCB), the holding company of PCB Bank (the "Bank"), today reported net income available to common shareholders of $9.1 million, or $0.64 per diluted common share, for the fourth quarter of 2025, compared with $11.3 million, or $0.78 per diluted common share, for the previous quarter and $6.7 million, or $0.46 per diluted common share, for the year-ago qua ...

"With a good start to the fiscal year, we are optimistic about our position in the market and confident in our growth opportunities," said Kevin Yeaman, President and CEO, Dolby Laboratories. "We continue to have strong momentum with Dolby Atmos and Dolby Vision, while also expanding our addressable market with our imaging patent program for content streamers and Dolby OptiView." First Quarter Fiscal 2026 Financial Highlights A complete listing of Dolby's non-GAAP measures are described and reconciled to th ...

Financial Performance - Consolidated net income for Q4 2025 was $58.7 million, exceeding the high end of revised guidance, with full-year net income reaching a record $183.5 million[3]. - Consolidated revenues for Q4 2025 were $75.9 million, primarily from management services at the Great Park segment and land sales at the Valencia segment[8]. - The net income for the three months ended December 31, 2025, was $142,651,000, reflecting a decrease of 37% compared to the previous period[28]. - For the twelve months ended December 31, 2025, total revenues reached $935,679,000, with land sales contributing $868,109,000[30]. - The net income for the twelve months ended December 31, 2025, was $566,724,000, indicating a significant increase compared to the previous year[30]. - Net income attributable to the company for the twelve months ended December 31, 2025, was $70,966 thousand, compared to $68,297 thousand in 2024, reflecting a growth of 2.4%[22]. Revenue Sources - The Great Park Venture sold 187 homesites for an aggregate purchase price of $181.5 million during Q4 2025, contributing to significant revenue generation[10]. - For the full year 2025, the Great Park Venture sold 920 homesites for a total of $781.7 million, with distributions to holders of Percentage Interests amounting to $672.0 million[15]. - Management services revenue from related parties increased to $32,968 thousand for the three months ended December 31, 2025, compared to $21,369 thousand in 2024, marking a growth of 54.5%[22]. - Management services revenue for the three months was $32,968,000, primarily from related party transactions[28]. Liquidity and Capital Structure - Total liquidity as of December 31, 2025, was $643.0 million, consisting of cash and cash equivalents of $425.5 million and borrowing availability of $217.5 million[4]. - The company reported a total liquidity of $643,046 thousand as of December 31, 2025, including cash and cash equivalents of $425,546 thousand[26]. - The debt to total capitalization ratio was 16.3% as of December 31, 2025, indicating a strong balance sheet and reduced leverage levels[6]. - The net debt to total capitalization ratio was 1.0%, suggesting minimal reliance on debt financing[27]. - The company issued $450.0 million in new 8.000% Senior Notes due October 2030 in September 2025, enhancing its capital structure[6]. Assets and Inventories - The company’s inventories increased to $2,443,279 thousand as of December 31, 2025, up from $2,298,080 thousand in 2024, indicating a rise of 6.3%[24]. - The total assets of the company reached $3,249,003 thousand as of December 31, 2025, compared to $3,076,417 thousand in 2024, reflecting an increase of 5.6%[24]. - The company’s retained earnings grew to $228,043 thousand as of December 31, 2025, up from $157,077 thousand in 2024, representing a significant increase of 45.2%[24]. Segment Performance - Segment profit from operations for the Great Park segment was $148,805 thousand for the three months ended December 31, 2025, and $625,933 thousand for the twelve months ended December 31, 2025[32]. - Net income attributed to the Great Park segment from the management company was $20,617 thousand for the three months and $41,454 thousand for the twelve months ended December 31, 2025[32]. - The net income of the Great Park Venture was $128,188 thousand for the three months and $584,479 thousand for the twelve months ended December 31, 2025[32]. - The Company's share of net income from the Great Park Venture was $48,071 thousand for the three months and $219,180 thousand for the twelve months ended December 31, 2025[32]. - Equity in earnings from unconsolidated entities for Q4 2025 was $44.9 million, with the Great Park Venture generating net income of $128.2 million during the same period[9]. - Equity in earnings from the Great Park Venture amounted to $44,195 thousand for the three months and $201,289 thousand for the twelve months ended December 31, 2025[32]. Future Outlook - The company expects consolidated annual net income for 2026 to be approximately $100 million, reflecting ongoing market monitoring and strategic land sales optimization[3]. - The company plans to focus on expanding its management services and exploring new market opportunities following the sale of the Gateway Commercial Venture's assets[29]. - The Company's commercial segment is no longer operating following the sale of Gateway Commercial Venture's assets in December 2024[32].

Financial Performance - Revenue for Q2FY26 was $3.02 billion, representing a 25% increase year over year[5] - GAAP gross margin improved to 45.7%, up 800 basis points from 37.7% in Q2FY25[6] - Operating income reached $908 million, a 62% increase compared to $560 million in Q2FY25[6] - Diluted net income per common share for Q2FY26 was $4.73, a 272% increase from $1.27 in Q2FY25[6] - Net income for the three months ended January 2, 2026, was $1,842 million, a significant increase from $594 million in the same period last year, representing a growth of 210%[26] - GAAP gross profit for the three months ended January 2, 2026, was $1,380 million, compared to $1,227 million for the previous quarter, reflecting a 12.5% increase[28] - Non-GAAP gross profit for the same period was $1,391 million, up from $1,237 million, indicating a growth of 12.4%[28] - The company reported a GAAP operating income of $908 million for the three months ended January 2, 2026, compared to $792 million in the previous quarter, marking a 14.6% increase[28] - Non-GAAP diluted net income from continuing operations attributable to common shareholders was $807 million for the three months ended January 2, 2026, compared to $655 million in the previous quarter, reflecting a growth of 23.2%[30] Cash Flow and Dividends - Free cash flow for the quarter was $653 million, with over 100% returned to shareholders through share repurchases and dividends[4] - Free cash flow for the six months ended January 2, 2026, was $1,252 million, significantly higher than $321 million in the same period last year[30] - The company declared a cash dividend of $0.125 per share, payable on March 18, 2026[9] - Cash and cash equivalents at the end of the period were $1,975 million, down from $2,291 million at the end of the previous quarter[26] Future Guidance - For Q3FY26, revenue is expected to be approximately $3.2 billion, reflecting a 40% year-over-year growth at the mid-point[7] - Non-GAAP gross margin guidance for Q3FY26 is projected at 47.5%[7] Operational Insights - The company continues to focus on high-capacity drives to meet growing data center demand in the AI-driven data economy[4] - The company’s GAAP operating margin for the three months ended January 2, 2026, was 30.1%, compared to 28.1% in the previous quarter[28] - The company’s net cash provided by operating activities for the three months ended January 2, 2026, was $745 million, compared to $672 million in the previous quarter, an increase of 10.8%[30] - The company reported a net cash used in financing activities of $703 million for the three months ended January 2, 2026, compared to a minimal usage of $1 million in the previous quarter[26] Non-GAAP Measures and Adjustments - Non-GAAP gross margin guidance excludes stock-based compensation expense, totaling approximately $10 million[43] - Non-GAAP operating expenses guidance excludes stock-based compensation and other expenses, totaling approximately $40 million to $50 million[43] - Non-GAAP diluted net income per common share guidance excludes items totaling $50 million to $60 million[43] - Non-GAAP diluted weighted average shares include the benefit of 2 million shares from capped call transactions related to convertible senior notes due 2028[43] - Income tax adjustments reflect differences between GAAP and non-GAAP tax rates due to excluded items and non-recurring items[38] - Free cash flow is defined as cash flows from operating activities less capital expenditures, considered useful for strategic opportunities[40] - Business realignment charges may occur to align operations with market demand or achieve cost synergies, deemed not indicative of underlying performance[35] - The company recognizes expenses related to litigation matters that do not reflect operating results and are not indicative of business performance[34] - Adjustments to non-GAAP guidance may include unanticipated changes in GAAP effective tax rates and other non-recurring items[42] - Non-GAAP measures are provided to enhance understanding of underlying business performance and are not reconciled to GAAP due to unpredictability[41]