Core Viewpoint - The company successfully completed a €1.5 billion plan to strengthen its financial position six months ahead of schedule, significantly improving its balance sheet and regaining normal access to the debt market [6][8][42]. Financial Performance - Revenue for the first half of 2025 was €2,656 million, reflecting a reported growth of 0.8% and an organic growth of 4.8% [17][7]. - EBITDAR pre-IFRS 16 was €546 million, stable compared to the first half of 2024, while EBITDA pre-IFRS 16 decreased to €263 million, down 4.1% [21][22]. - The net loss for the Group share pre-IFRS 16 was €47 million, compared to a loss of €28 million in the first half of 2024 [28][29]. Debt and Leverage - Net debt decreased by €212 million to €3,559 million as of 30 June 2025, resulting in a Wholeco leverage ratio of 5.6x [37][41]. - The company successfully issued €400 million of unsecured bonds, which were over three times oversubscribed, and amended its syndicated loan facility [46][44]. Operational Highlights - The Long-Term Care business showed good momentum with an occupancy rate exceeding 91% by the end of July 2025 [9]. - The company faced challenges in France due to the introduction of a new pricing structure for medical services, which negatively impacted financial performance in the first half [10][11]. Future Outlook - For 2025, the company expects organic revenue growth of around 5% and aims for EBITDA growth of 6-9% pre-IFRS 16 [50][52]. - The Wholeco leverage ratio is projected to fall below 5.5x by the end of 2025, with continued focus on improving cash flow generation and reducing debt levels [50][52].

Core Viewpoint - Educational Development Corporation (EDC) has focused on cash flow management over profitability in fiscal 2025, leading to significant debt reduction and inventory management strategies [2][5]. Fiscal Year Summary Compared to the Prior Year - EDC reduced bank debts and vendor payables by a total of $16.9 million over fiscal years 2024 and 2025, with a reduction of $3.1 million in bank debts and $2.0 million in vendor payables during fiscal 2025 [2]. - Inventory levels decreased from $55.6 million to $44.7 million, generating $10.9 million in cash flow, with an excess inventory of approximately $30 million remaining [2]. - The company experienced a net loss of $(5.3) million for the fiscal year, compared to a net gain of $0.5 million in the previous year [4][6]. Fourth Quarter Summary Compared to the Prior Year Fourth Quarter - Net revenues for the fourth quarter were $6.6 million, down from $9.0 million in the previous year, while the average active PaperPie Brand Partners decreased from 15,500 to 9,400 [4][6]. - The loss before income taxes improved to $(1.5) million from $(2.2) million in the prior year’s fourth quarter, indicating a focus on cost reductions [4][6]. - Loss per share for the fourth quarter was $(0.16), an improvement from $(0.19) in the previous year [4][6]. Strategic Direction - EDC plans to strengthen its financial position through the sale and leaseback of its headquarters, which is expected to eliminate remaining bank debts and associated interest expenses [5]. - A Purchase Sale Agreement has been executed with TG OTC, LLC, with the transaction expected to close by early September 2025, allowing EDC to retain ownership of excess land [5].