Group 1 - Brown Capital Management's Small Company Fund reported an 8.59% return in Q2 2025, underperforming the Russell 2000® Growth index which returned 11.97% [1] - The underperformance was attributed to the last few weeks of the quarter [1] - The fund's top five holdings were highlighted as key picks for 2025 [1] Group 2 - Helios Technologies, Inc. (NYSE:HLIO) was mentioned as a notable stock, with a one-month return of 5.46% and a 52-week gain of 29.41% [2] - As of September 12, 2025, Helios Technologies, Inc. had a stock price of $54.30 and a market capitalization of $1.8 billion [2] - The Small Company Fund made three deletions in Q2 2025, including Helios Technologies, Inc. [3]

Financial Performance - Q2 2025 revenue was $212 million, a decrease of 3% year-over-year[14] - Adjusted EBITDA margin for Q2 2025 was 18.6%, down 150 bps year-over-year[14] - Diluted Non-GAAP EPS for Q2 2025 was $0.59, down 8% year-over-year[14] - The company is actively managing the Helios portfolio[12] Divestiture and Acquisition - Helios signed a definitive agreement to sell its Australian Hydraulic Services business (Custom Fluidpower) to Questas Group for approximately $54 million USD[11] - Custom Fluidpower had full-year 2024 sales of $61 million USD and adjusted EBITDA of $8 million USD[11] - Cash proceeds from the divestiture will be primarily used for debt reduction[11] Tariff Impact - Estimated total direct tariff cost impacts for the second half of 2025 are approximately $8 million USD[57] - China and the European Union tariffs represent the greatest impact to Helios[61] Outlook - The company issued full-year 2025 net sales guidance of $810 million to $830 million, representing a +1% to +3% change relative to 2024[66] - The company issued full-year 2025 adjusted EBITDA margin guidance of 18.5% to 19.5%, representing a -70 bps to +30 bps change relative to 2024[66] - The company issued full-year 2025 diluted Non-GAAP EPS guidance of $2.30 to $2.50, representing a +10% to +19% change relative to 2024[66]

OVERVIEW OF SYSTEM SALES JANUARY 18, 2024 SAFE HARBOR STATEMENT This presentation and oral statements made by management in connection herewith that are not historical facts are "forward ‐ looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward ‐ looking statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied by such statements. They include statements regarding current expectations, estimates, forecas ...

Q1 2025 Financial Performance - Revenue for Q1 2025 was $195 million, a decrease of 8% year-over-year[13] - Adjusted EBITDA margin was 173%, down 90 bps year-over-year[13] - Diluted Non-GAAP EPS was $044, a decrease of 17% year-over-year, but $008 above current consensus[13] Segment Performance - Hydraulics segment sales were $1264 million, an 11% decrease year-over-year[40] - Electronics segment sales were $691 million, a 1% decrease year-over-year[43] - Hydraulics segment operating income was $174 million, a 20% decrease year-over-year[40] - Electronics segment operating income was $80 million, a 13% increase year-over-year[43] Cash Flow, Debt, and Capital Allocation - Free cash flow for Q1 2025 was $129 million[45] - Total debt was $445 million, with liquidity of $399 million[54] - Net debt to adjusted EBITDA ratio was 27x[55] Outlook and Tariffs - Q2 2025 net sales are expected to be between $198 million and $206 million, representing a decrease of 10% to 6% relative to Q2 2024[64] - Q2 2025 adjusted EBITDA margin is expected to be between 175% and 185%, representing a decrease of 260 bps to 160 bps relative to Q2 2024[64] - Estimated total direct cost impacts from tariffs are approximately $15 million[57]