WaterBridge Announces Fourth Quarter and Fiscal Year 2025 Results WaterBridge Announces Fourth Quarter and Fiscal Year 2025 Results Share Reports fourth quarter 2025 produced water handling volumes of 2.6 million barrels per day and revenue of $208.9 million, representing quarterly growth of 1% and 2%, respectively Reports full year 2025 combined produced water handling and pro forma revenue growth of 15% and 19%, respectively, year-over-year Achieved a single-day volume record of approximately 2.9 million ...

Financial Data and Key Metrics Changes - Assets under management (AUM) reached a record $867 billion at year-end 2025, reflecting market appreciation and strong sales [5] - Adjusted earnings for Q4 2025 were $0.96 per unit, down 9% year-over-year, while full-year adjusted earnings increased 2% to $3.33 [23][24] - Total net revenues for Q4 were $957 million, down 2% year-over-year, with full-year revenues flat at $3.5 billion [24] - Adjusted operating margin for the year was 33.7%, at the upper end of the 30%-35% target range [8][37] Business Line Data and Key Metrics Changes - Bernstein Private Wealth had $156 billion in AUM, contributing approximately 37% of firm-wide revenues in 2025 [5] - Private Markets platform closed the year with $82 billion in AUM, up 18% year-over-year [6] - SMA franchise reached $62 billion in AUM, growing 12% organically in 2025 [6] - Active ETF suite expanded to $14 billion across 24 strategies, delivering 65% organic growth in 2025 [6] Market Data and Key Metrics Changes - Firm-wide active net flows were negative for both the quarter and the full year, with total net active outflows of $9.4 billion in 2025 [6] - Taxable fixed income saw $2 billion in outflows in Q4 and $9.1 billion for the year, driven by geopolitical uncertainty [7] - Tax-exempt franchise generated $3.9 billion in inflows in Q4 and $11.6 billion for the year, marking 13 consecutive years of organic growth [7] Company Strategy and Development Direction - The company is focused on expanding its Private Markets capabilities and enhancing commercial real estate lending [9][22] - A partnership with Equitable is seen as a strategic advantage, expected to onboard over $10 billion of new long-duration assets by year-end 2026 [9][31] - The firm aims to exceed its target of $90 billion-$100 billion in Private Markets AUM by 2027, with ongoing investments in growth initiatives [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's strategic progress and disciplined execution throughout 2025 [4] - The outlook for 2026 includes expectations for continued growth in private asset mandates and a focus on enhancing investment services [39] - The firm anticipates that stable economic growth could favor international and value strategies moving forward [16] Other Important Information - The effective tax rate for 2025 was 5.9%, with a forecast of 6%-7% for 2026 [32] - The firm is investing in a new investment management platform expected to enhance operational efficiency and drive future growth [30] Q&A Session Summary Question: Outlook for high-yield funds in Asia - Management noted that macro factors like FX risk have not significantly impacted structural demand for fixed income in Asia, with strong demand for U.S. dollar-denominated strategies [41][42] Question: Seasonality in Private Wealth - Management indicated that tax impacts in Q2 are a key seasonal factor, with overall confidence in the pipeline for new client acquisition [47][48] Question: Private credit exposure to software - Management stated that exposure to software within the private credit portfolio is not significant, with diligent monitoring of credit risks [51][53] Question: Growth of Private Markets AUM beyond 2027 - Management expressed ambition to exceed the current target for Private Markets AUM and indicated that further opportunities for expansion exist [55]

Financial Data and Key Metrics Changes - Fourth quarter consolidated revenue reached $5.286 billion, representing a 15.9% reported growth compared to Q4 2024, with operational revenue growth of 14.3% after excluding a $74 million foreign exchange tailwind [19] - Full year 2025 consolidated revenue was $20.074 billion, marking a 19.9% reported growth versus 2024, with operational revenue growth of 19.2% after excluding a $114 million foreign exchange tailwind [20] - Adjusted EPS for Q4 was $0.80, growing 15% year-over-year, exceeding guidance [19] - Full year 2025 adjusted EPS was $3.06, reflecting a 22% increase compared to 2024, marking the third consecutive year of 20%+ adjusted EPS growth [20] Business Line Data and Key Metrics Changes - Urology sales grew 13% operationally in Q4 and 23% operationally for the full year, but performance was below expectations [5] - Endoscopy achieved 8% organic growth in both Q4 and for the full year, driven by endoluminal surgery and imaging systems [5] - Neuromodulation grew 10% in Q4 and 8% organically for the full year, with strong performance from the brain franchise [6] - Cardiovascular segment delivered 16% operational growth in Q4 and 22% operational growth for the full year [7] - Watchman business grew 29% in Q4 and strong double-digit growth for the full year, driven by concomitant procedures [13] Market Data and Key Metrics Changes - U.S. market grew 17% in Q4 and 26% for the full year, with strong performance in EP, Watchman, and ICTX [3] - Asia Pacific region grew 15% operationally in Q4 and 14% for the full year, led by Japan and China [4] - Europe, Middle East, and Africa grew 5% in Q4 and 3% for the full year, with high single-digit growth excluding Acclarent discontinuation [3] Company Strategy and Development Direction - The company anticipates continued momentum in EP and Watchman, with expectations for higher growth in the second half of 2026 [4] - Strategic acquisitions, including Penumbra and Valencia Technologies, are aimed at entering high-growth segments and expanding product offerings [24][25] - The company is focused on maintaining a strong pipeline of innovative products and expanding its market share in key areas [52][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 10%-11% organic revenue growth for 2026, with adjusted EPS growth of 12%-14% [27][28] - The company expects to face challenges in the first half of 2026 due to product discontinuations but anticipates a stronger performance in the second half [46] - Management highlighted the importance of ongoing investments in R&D and strategic M&A to drive future growth [63] Other Important Information - The company expects full-year 2026 adjusted gross margin to be in line with 2025, with a slight expansion in operating margin anticipated [21] - Free cash flow for 2025 was $3.659 billion, exceeding expectations, with a target of approximately $4.2 billion for 2026 [24] Q&A Session Summary Question: Concerns about U.S. EP and Watchman performance - Management noted that U.S. EP grew 35% in Q4, exceeding internal targets, and Watchman grew 29%, indicating strong market performance despite concerns [34][36] Question: Impact of recent trials on Watchman - Management confirmed no negative impact from recent trials on Watchman uptake, with robust growth continuing [41] Question: Expectations for EP growth in 2026 - Management expects EP growth to be around 15%, with confidence in maintaining market leadership despite increased competition [44][51] Question: Diversification of growth drivers - Management emphasized ongoing investments in various business units, including Neuromodulation and Urology, to ensure consistent performance across the portfolio [60][62] Question: Confidence in long-term growth targets - Management reaffirmed confidence in achieving long-term revenue growth targets of 10%+, supported by strategic acquisitions and market leadership [86]

Financial Data and Key Metrics Changes - Fourth quarter consolidated revenue reached $5.286 billion, representing a 15.9% reported growth compared to Q4 2024, with operational revenue growth of 14.3% after excluding a $74 million foreign exchange tailwind [18] - Full year 2025 consolidated revenue was $20.074 billion, marking a 19.9% reported growth versus 2024, with operational revenue growth of 19.2% after excluding a $114 million foreign exchange tailwind [19] - Adjusted EPS for Q4 2025 was $0.80, a 15% increase from 2024, exceeding guidance [18] - Full year 2025 adjusted EPS was $3.06, growing 22% versus 2024, also exceeding guidance [19] - Adjusted gross margin for Q4 was 70.7%, with a full year adjusted gross margin of 70.6%, reflecting a 30 basis point expansion [20] Business Line Data and Key Metrics Changes - Urology sales grew 13% operationally in Q4 and 23% operationally for the full year, but performance was below expectations [4] - Endoscopy achieved organic growth of 8% in both Q4 and for the full year, driven by endoluminal surgery and imaging systems [4] - Neuromodulation grew 10% in Q4 and delivered 8% organic growth for the full year, with strong performance from the brain franchise [5] - Cardiovascular segment delivered 16% growth operationally in Q4 and 22% operationally for the full year [6] - Watchman business grew 29% in Q4 and maintained strong double-digit growth for the full year [12] Market Data and Key Metrics Changes - U.S. operational growth was 17% in Q4 and 26% for the full year, with strong performance in EP, Watchman, and ICTX [2] - Asia Pacific region grew 15% operationally in Q4 and 14% for the full year, led by Japan and China [3] - Europe, Middle East, and Africa grew 5% in Q4 and 3% for the full year, with high single-digit growth excluding Acclarent discontinuation [2] Company Strategy and Development Direction - The company anticipates continued momentum in EP and Watchman, with expectations for higher growth in the second half of 2026 [3] - Strategic acquisitions, including Penumbra and Valencia Technologies, are aimed at entering high-growth markets and expanding product offerings [24][6] - The company is focused on maintaining a strong pipeline of innovative products and expanding its market share in key segments [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 10%-11% organic revenue growth for 2026, with adjusted EPS growth of 12%-14% [27] - The company expects to face challenges in the first half of 2026 due to product removals and market adjustments but anticipates stronger performance in the latter half [25][43] - Management highlighted the importance of ongoing investments in R&D and strategic M&A to drive long-term growth [61] Other Important Information - The company reported free cash flow of $3,659 million for the full year 2025, exceeding expectations [22] - The legal reserve was $242 million as of December 31, with $46 million already funded [24] - The company maintains a strong balance sheet with cash on hand of $1.965 billion and a gross debt leverage ratio of 1.9 times [23] Q&A Session Summary Question: Concerns about U.S. EP and Watchman performance - Management reassured that Q4 results exceeded internal targets, with EP growing 35% and Watchman growing 29%, indicating strong market share gains [30][34] Question: Impact of recent trials on Watchman - Management confirmed no negative impact from recent trials and emphasized robust uptake of Watchman procedures [36][38] Question: Expectations for EP growth in 2026 - Management expects EP growth to exceed 15%, driven by new product approvals and market expansion [41][42] Question: Diversification of growth drivers - Management highlighted strong performance expected in Neuromod, Urology, and Endoscopy, with ongoing investments to ensure consistent growth across all business units [59][60]

Core Viewpoint - United Parcel Service (UPS) is experiencing revenue weakness primarily due to subdued demand influenced by tariff-related uncertainty, elevated inflation, and broader geopolitical challenges, with a 3.7% revenue decline in the September quarter compared to the previous year [1]. Revenue and Margin Performance - Despite the revenue decline, UPS has seen an increase in its adjusted operating margin, which reached 10% in Q3 2025, up from 8.9% a year ago and 8.8% in Q2 2025, driven by effective cost management and a 9.8% increase in revenue per piece [2][10]. - UPS anticipates further improvement in the adjusted operating margin, projecting it to be in the range of 11-11.5% for Q4 2025, with an estimated revenue of $16.2 billion in the U.S. Domestic segment and an adjusted operating margin of around 10% [4]. Customer Relationship and Cost Management - Earlier in the year, UPS decided to reduce its business with Amazon, its largest customer, aiming to lower Amazon's volume by over 50% by June 2026. This decision is expected to result in a $2.2 billion reduction in expenses related to Amazon by the end of Q3 2025, with a target of $3.5 billion by year-end [3][10]. Competitive Landscape - FedEx, a competitor of UPS, is also facing weak demand and is implementing cost-cutting measures. In Q1 of fiscal 2026, FedEx achieved $200 million in transformation-related savings and reported a 7% increase in adjusted operating income [5]. Stock Performance and Valuation - Over the past six months, UPS shares have declined by more than 6%, underperforming its industry [6]. - From a valuation perspective, UPS trades at a 12-month forward price-to-earnings ratio of 13.16X, which is nearly in line with industry levels [11].

3Q25 Earnings Review 2 • The pipeline of new institutional mandates not yet funded: Before they are funded, institutional mandates do not represent legally binding commitments to fund and, accordingly, the possibility exists that not all mandates will be funded in the amounts and at the times currently anticipated, or that mandates ultimately will not be funded. • The achievement of our Private Markets AUM target: Our ability to achieve our private markets AUM target is subject to the current market environ ...

Financial Performance - Record quarter-end AUM of $829 billion, with 17% in Private Wealth and 83% in Asset Management[5] - 2Q25 adjusted base management fees were up +6% y/y & down -2% q/q, compared to channel avg AUM levels up +8% y/y & down -1% q/q[18] - The firm's blended base fee rate was 38.7 bps in 2Q25, down -2% q/q & y/y, reflecting mix shift[7] - Adjusted operating margin was 32.3% in 2Q25, compared to 30.8% in 2Q24 and 33.7% in 1Q25[10,31] - AB Holding adjusted diluted net income per unit was $0.76 in 2Q25, compared to $0.71 in 2Q24 and $0.80 in 1Q25[10,31] Flows and AUM Composition - Active outflows of $4.8 billion in 2Q25, skewed in April, with demand rebounding in June and pipeline building[5] - Retail posted its first outflowing quarter as overseas demand steps back from turbulent macro[18] - Institutional channel saw positive active net flows in 2Q, >$300 million, driven by taxable FI and alts; outflows concentrated in equities, ~60% passive[25] - Private alts fundraising ~$0.6 billion in 2Q, broad-based across franchises[30] - Equitable ("EQH") AUM reached $137.8 billion in 2Q25, compared to $127.1 billion in 2Q24 and $132.1 billion in 1Q25[10] - Private Markets AUM* reached $77.1 billion in 2Q25, compared to $64.1 billion in 2Q24 and $75.3 billion in 1Q25[10] Strategic Initiatives and Outlook - The company is targeting $90-$100 billion AUM in Private Markets by 2027[9] - The company expects total FY25 performance fees of $110–$130 million, up from $90–105 million across private and public strategies[39,41] - The company is on track for 33% FY25 margins assuming flat markets[42]

Financial Data and Key Metrics Changes - In Q2 2025, total company operational sales grew 22% and organic sales grew 17%, exceeding the guidance range of 13% to 15% [6][23] - Adjusted EPS for Q2 was $0.75, representing a 23% increase, also surpassing the guidance range of $0.71 to $0.73 [6][23] - Adjusted operating margin was 27.6%, an increase of 50 basis points compared to Q2 2024 [7][24] Business Line Data and Key Metrics Changes - Urology sales grew 28% operationally and 6% organically, driven by stone management and prosthetic urology franchises [11] - Endoscopy grew 8% globally, with double-digit growth in the U.S., supported by strong performance in key products [12] - Cardiology sales increased by 28%, with interventional cardiology therapy sales growing 9% [13] Market Data and Key Metrics Changes - U.S. operational growth was 31%, primarily driven by the cardiovascular portfolio [8][9] - EMEA grew 2% operationally, with 7% growth excluding the Accurate Valve discontinuation [9] - Asia Pacific saw a 15% operational growth, led by strong performance in Japan, China, and Australia [10] Company Strategy and Development Direction - The company is focusing on expanding its portfolio and investing in clinical evidence to support new technologies [15][21] - There is a commitment to strategic acquisitions and high-growth adjacencies, with recent acquisitions of Sonae V and Entera Medical [26] - The company aims to continue outpacing market growth through organic portfolio enhancements and strategic M&A [94] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting full-year organic growth to be in the range of 14% to 15% [28][29] - The anticipated impact of tariffs and the Accurate Valve discontinuation was discussed, with expectations for gross margin to remain flat for the year [24][45] - Management highlighted the importance of clinical data and reimbursement developments in driving future growth [72][75] Other Important Information - The company received a credit rating upgrade from Moody's to A3, reflecting improved financial stability [26] - Free cash flow for Q2 was $1,129 million, with expectations for full-year free cash flow to be approximately $3,500 million [26] Q&A Session Summary Question: WATCHMAN growth and durability - Management noted strong growth in WATCHMAN, driven by safety and efficacy, with expectations for continued growth in the future [35][38] Question: Gross margin concerns - Management addressed the impact of the Accurate Valve discontinuation on gross margin, emphasizing strong sales performance and cost controls [42][44] Question: Growth vectors for EP business - Management highlighted market growth, PFA adoption, and new product introductions as key growth drivers for the electrophysiology business [49][50] Question: MedSurg business performance - Management emphasized strong performance in Endoscopy and Neuromodulation, with expectations for continued growth despite some competitive pressures [55][60] Question: ASC setting and growth implications - Management expressed optimism about the ASC setting, viewing it as a positive development for future growth despite potential challenges [64][68] Question: Renal denervation market potential - Management discussed the potential of the renal denervation market, emphasizing the importance of clinical trials and market positioning [71][75] Question: Evolution of the EP portfolio - Management outlined plans for expanding the EP portfolio, including new product launches and indication expansions [78][82]

Financial Data and Key Metrics Changes - For Q2 2025, the company achieved 8% adjusted and organic revenue growth and 16% adjusted EPS growth, with an adjusted operating margin of 39.6%, an increase of 120 basis points year-over-year [5][33] - Free cash flow for the quarter was $1,200,000,000, with expectations of approximately $5,500,000,000 for the full year [34][35] - The company refined its full-year organic revenue growth guidance to approximately 10%, at the low end of the previous range of 10% to 12% [7][46] Business Line Data and Key Metrics Changes - In the Merchant Solutions segment, organic revenue growth was 9% for both the quarter and year-to-date, with Clover revenue growing 30% in Q2 [35][39] - The Financial Solutions segment saw organic revenue growth of 7% in the quarter, driven by strong growth in issuing and digital payments [40][42] - Clover's volume growth was reported at 8%, with an adjusted growth of 11% excluding the gateway conversion [10][36] Market Data and Key Metrics Changes - The company reported a significant increase in Clover's value-added services (VAS) revenue, which grew 52% [11] - The international expansion of Clover is progressing well, particularly in Brazil, Mexico, and Canada, with new partnerships enhancing market penetration [12][13] Company Strategy and Development Direction - The company is focused on expanding its Clover platform through new products, markets, and partnerships, aiming to enhance its distribution channels and drive growth [9][20] - Strategic initiatives include the launch of Clover Hospitality and partnerships with TD Bank and Adobe to enhance service offerings [14][21] - The company is also investing in its digital payment solutions and cash flow management tools to meet evolving customer needs [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing strategic and financial benefits from new product launches, despite some delays in execution [6][7] - The macroeconomic environment has been uncertain, impacting the timing of product rollouts and client implementations [78][79] - The company anticipates an acceleration in organic revenue growth in the second half of the year, particularly in the Merchant Solutions segment [46] Other Important Information - The company returned $2,200,000,000 to shareholders through share repurchases in the quarter, increasing its share repurchase guidance to approximately 130% of free cash flow [5][44] - Total debt outstanding was $29,600,000,000, with a debt to adjusted EBITDA ratio steady at 2.9 times [43][44] Q&A Session Summary Question: Insights on Clover Capital penetration - Management acknowledged that Clover Capital is underpenetrated compared to peers and discussed ongoing efforts to unlock total addressable market (TAM) through operational refinements and risk management strategies [49][52] Question: Changes in merchant growth rate expectations - Management clarified that the refinement in growth expectations is due to a combination of slower product rollouts and macroeconomic factors, not a decline in product quality [58][60] Question: Details on merchant operating margins - Management explained that the decline in merchant margins was anticipated due to acquisitions and investments in marketing and product development, which are expected to yield long-term benefits [85][88] Question: Acceleration in growth rates for the second half - Management indicated that the expected acceleration in growth rates is supported by easier year-over-year comparisons and continued expansion of Clover and Commerce Hub [91][94]

Financial Performance Highlights - Moody's achieved its second-highest Q2 revenue on record[9] - Moody's Analytics (MA) Annualized Recurring Revenue (ARR) reached $33 billion, an increase of 8% year-over-year[9] - Adjusted Operating Margin increased by 130 basis points to 509%[12] - Adjusted Diluted EPS increased by 9% to $356[12] Moody's Investors Service (MIS) Performance - MIS revenue outpaced issuance by approximately 12%[13] - MIS achieved an Adjusted Operating Margin of 642%, up 100 basis points[12, 16] - Total MIS rated issuance guidance was updated to reflect a decrease in the low-single-digit to mid-single-digit percent range[27, 36] Moody's Analytics (MA) Performance - MA experienced strong recurring revenue growth, with recurring revenue accounting for 96% of total revenue[19] - MA's Adjusted Operating Margin increased by 360 basis points to 321%[12, 19] - Decision Solutions led with 10% ARR growth[12] - MA revenue grew by 11% year-over-year[19] Updated Full Year 2025 Guidance - MCO revenue growth is projected to be in the mid-single-digit percent range[10] - Adjusted Diluted EPS is now expected to be in the range of $1350 to $1400[12] - The company plans to repurchase at least $13 billion in shares[39]