Core Laboratories (CLB) Gains on Sequential Revenue Growth and Solintec Acquisition

Fund Performance - Ariel Fund delivered a +3.22% return in Q4 2025, in line with Russell 2500 Value Index (+3.15%) and Russell 2000 Value Index (+3.26%) [1] - For the trailing one-year period, the Fund advanced 14.15%, outperforming Russell 2500 Value Index (+12.73%) and Russell 2000 Value Index (+12.59%) [1] - The Fund's 5- and 10-year average annual returns were +9.36% and +9.51%, respectively [1] Market Conditions - Performance attributed to resilient corporate earnings, easing inflation, and rising expectations for accommodative monetary policy [1] - Continued enthusiasm around artificial intelligence and cloud infrastructure supported markets, although gains were concentrated in a narrow group of large-cap stocks [1] Outlook and Strategy - The firm maintains a measured and cautious outlook for 2026, citing geopolitical risks, fiscal constraints, labor market dynamics, and elevated market concentration as potential volatility sources [1] - Management reaffirmed a long-term, bottom-up approach, emphasizing strong balance sheets, durable fundamentals, and valuation discipline [1] Company Highlight: Core Laboratories Inc. - Core Laboratories Inc. (NYSE:CLB) reported sequential revenue growth driven by strong global demand for its services and products [3] - The company improved operating income, margins, and EPS, while enhancing its international presence through the acquisition of Brazil-based Solintec [3] - Core Laboratories reduced leverage to a nine-year low and returned capital to shareholders through dividends and buybacks, positioning itself for long-term growth [3] - The stock had a one-month return of -15.49%, trading between $9.72 and $20.36 over the last 52 weeks, closing at approximately $16.11 on March 5, 2026, with a market capitalization of about $735.76 million [2][3]