Q2 2025 Financial Results July 31, 2025 Copyright © 2025 Strategy. All Rights Reserved. Strategy Q2 2025 Earnings Call Safe Harbor Statement FORWARD-LOOKING STATEMENTS Some of the information we provide in this presentation regarding our future expectations, plans, guidance, and prospects may constitute forward-looking statements, including, without limitation, our guidance with respect to 2025 operating income, net income, earnings per share, BTC Yield and BTC $ Gain, and the hypothetical valuation models ...

Financial Performance Highlights - Revenue for Q4 Fiscal Year 2025 reached $3175 billion, showing a year-over-year growth of 24% and a quarter-over-quarter growth of 4%[11] - The company achieved a gross margin of 632% and an operating margin of 442%[12] - Net income for the quarter was $12 billion[12] - Non-GAAP diluted EPS stood at $938, while GAAP diluted EPS was $906[14] Revenue Breakdown - Semiconductor Process Control segment contributed $2879 billion in revenue, with a year-over-year growth of 25% and a quarter-over-quarter growth of 5%[16] - PCB and Component Inspection segment generated $142 million in revenue, showing a year-over-year growth of 17% but a quarter-over-quarter decrease of 9%[16] - Specialty Semiconductor Process segment accounted for $154 million in revenue, with a year-over-year growth of 10% but a quarter-over-quarter decrease of 9%[16] - Wafer Inspection accounted for $1772 billion in revenue, with a year-over-year growth of 52% and a quarter-over-quarter growth of 18%[19] Regional Performance - Taiwan accounted for 56% of the company's revenue[19] - China contributed 12% to the company's revenue[19] - North America accounted for 14% of the company's revenue[19] Balance Sheet and Cash Flow - The company holds a strong investment-grade balance sheet with total cash of $4495 billion[21] - Free cash flow for the June quarter was $1065 billion, resulting in a free cash flow margin of 34%[33, 34] - The company returned $6797 million to shareholders through share buybacks ($426 million) and dividends ($254 million) in the June quarter[35] Guidance for Q1 FY2026 - The company projects revenue of $315 billion +/- $150 million for the September 2025 quarter[37] - Non-GAAP gross margin is expected to be 62% +/- 1%[37] - Non-GAAP diluted EPS is forecasted at $853 +/- $077[37]

EARNINGS PRESENTATION July 31, 2025 CAUTIONARY STATEMENT Safe Harbor Statement Gross profit margin is at its highest level in five quarters. Industry destocking was a slight headwind during the quarter, but this trend appears to largely have run its course. The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this presentation the matters set forth in this presentation include forward-looking statements. These statements can be identifie ...

Financial Performance & Outlook - Lumen reported total revenue of $3092 million, a decrease of 5.4% year-over-year and 2.8% quarter-over-quarter[30] - Adjusted EBITDA was $877 million, down 13.3% year-over-year, with an adjusted EBITDA margin of 28.4%, a decrease of 250 bps[35] - The company is guiding towards the high end of its adjusted EBITDA range due to strength in modernization and simplification programs[8] - Lumen revised its 2025 free cash flow outlook upwards to $1.2 to $1.4 billion, primarily driven by a $400 million tax refund, lower capital expenditures, better adjusted EBITDA performance, and lower interest expense[40] Debt Management - Lumen has reached nearly $9 billion in Private Connectivity Fabric (PCF) deals signed to date[8] - The company completed $2 billion in debt refinancing, extending maturities and reducing cash interest[8] - Pro forma Lumen SP debt paydown is projected to result in total debt of $13.5 billion and a gross leverage of 3.9x[28] Strategic Initiatives - Lumen announced the sale of its Consumer FTTH (fiber-to-the-home) business to AT&T for $5.75 billion to reduce leverage and focus on enterprise services[8] - The company is focused on building the backbone for AI, balancing capacity and utilization for optimal return on investment[10] - Lumen is experiencing strong NaaS (Network as a Service) adoption, with a 35% quarter-over-quarter increase in LCF (Lumen Cloud Fabric) customers purchasing and using one or more ports[14] Mass Markets - Total Mass Markets revenue was $602 million, a decrease of 12.8% year-over-year[30] - Fiber Broadband revenue within Mass Markets was $217 million, an increase of 19.9% year-over-year, contributing 36% to total broadband revenue[32]

Q2 2025 Financial Performance - Net sales increased to $202.8 million in Q2 2025, compared to $190.5 million in Q1 2025[19] - Gross margin improved to 31.6% in Q2 2025 from 29.9% in Q1 2025[19] - Adjusted earnings per diluted share increased to $0.34 in Q2 2025 from $0.27 in Q1 2025[19] - Adjusted EBITDA margin increased to 11.8% in Q2 2025 from 10.2% in Q1 2025[19] - The company reported a GAAP net loss of $73.6 million, primarily due to goodwill and other intangible impairment charges of $71.8 million related to the AES curamik® business[19] Market Dynamics and Response - The electric vehicle (EV) market is evolving rapidly, leading to a lower outlook for curamik® EV growth, particularly in North America and Europe[12, 13] - The company is right-sizing curamik® operations, expecting $13 million of annual run rate savings with approximately 1 year payback on restructuring actions[17] - The company is localizing manufacturing with a new curamik® facility in China scheduled to ramp production[17] Q3 2025 Guidance - The company expects net sales between $200 million and $215 million[27] - Gross margin is expected to be between 31.5% and 33.5%[27] - Adjusted earnings per diluted share are guided to be between $0.50 and $0.90[27]

Financial Performance - Total Revenue for Q2 2025 reached $88.7 million, an 8% increase compared to $82 million in Q2 2024[56] - Subscription Revenue for Q2 2025 grew by 12% to $73.3 million, up from $65.6 million in Q2 2024[56] - Adjusted EBITDA for Q2 2025 was $7.4 million, a $2.2 million increase from $5.2 million in Q2 2024[56] - Non-GAAP Earnings Per Share for Q2 2025 was $0.13, compared to $0.07 in Q2 2024[56] - Free Cash Flow for Q2 2025 was $3.2 million, a decrease of $3 million from $6.2 million in Q2 2024[56] - TTM (Trailing Twelve Months) Total Revenue reached $342.7 million, an 8% increase from $317.4 million[56] - TTM Subscription Revenue reached $280.5 million, a 12% increase from $250.7 million[56] - TTM Adjusted EBITDA reached $36.3 million, an $18.4 million increase from $18 million[56] - TTM Free Cash Flow reached $29.2 million, a $5.8 million increase from $23.4 million[56] - TTM Non-GAAP Earnings Per Share reached $0.56, a $0.34 increase from $0.22[56] Growth and Market Opportunity - PROS estimates an underpenetrated, addressable market of over $38 billion[8, 29] - The company processes over 4.5 trillion transactions annually, a 12% year-over-year increase[8, 24] - The company has a customer gross revenue retention rate of over 93%[8] - The company estimates subscription revenue between $295.5 million and $297.5 million for full year 2025[58]

Company Overview - Ryan Specialty is a rapidly growing provider of specialty products and solutions for insurance brokers, agents, and carriers[8] - The company's total revenue for the Last Twelve Months (LTM) ending June 30, 2025, was $2.8 billion[9] - As of June 30, 2025, Ryan Specialty's year-to-date (YTD) total revenue growth was 23.9%[9] - The YTD organic revenue growth was 9.6%[9] - Ryan Specialty is the 2nd largest U S P&C wholesale broker/managing underwriter[9] Market Position and Growth Strategy - Approximately 78% of Ryan Specialty's premiums are placed in the attractive Excess & Surplus (E&S) market[14] - Ryan Specialty's revenue growth with the top 100 retail brokerage firms exceeded the company's organic revenue growth of 12.8% in 2024[36] - The company has completed 62 acquisitions since its founding[35] - Ryan Specialty is capitalizing on market needs to enhance product capabilities through the launch of new Managing General Underwriters (MGUs) and Programs[38] Financial Performance - Ryan Specialty's LTM Adjusted EBITDAC as of June 30, 2025, was $915 million[52] - As of March 31, 2025, the company had $172 million in unrestricted cash and cash equivalents[59] - As of June 30, 2025, Ryan Specialty's net leverage on a credit basis was 3 5x[60]

Financial Performance - SPX Technologies achieved strong Q2 2025 performance with revenue growth of 10%[12] - Adjusted EBITDA grew by 16%, with a margin expansion of 120 bps primarily driven by HVAC[17] - Adjusted EPS increased by 16%[11], reaching $1.65 in Q2 2025[23] compared to $1.42 in Q2 2024[22] - Consolidated Segment Income increased by $18 million year-over-year[27], with HVAC being the primary driver of the margin increase of +110 bps[27] Segment Results - HVAC revenue increased by 5.7% year-over-year[33], with a segment income increase of $12 million and margin increase of 190 bps[33] - Detection & Measurement revenue increased by 21.3% year-over-year[39], with a segment income increase of $6 million[39] Financial Position & Guidance - The company is raising its 2025 guidance, implying +18% growth at midpoint for Adjusted EBITDA[9] - Full-year revenue guidance is $2.225-$2.275 billion[46] - Adjusted EBITDA guidance is $485-$510 million[46] - Adjusted EPS guidance is $6.35-$6.65[46]

Company Overview - Rocket Companies has facilitated over $1.9 trillion in total transaction volume and has served 10 million clients[15] - Rocket Mortgage is the 1 mortgage lender in America[15] Market Opportunity - The total addressable homeownership market is estimated at $29 trillion[20] - The mortgage origination market is valued at $2 trillion[22] - The homebuying market, including mortgage, real estate, title, and homeowner's insurance, is estimated at $5 trillion[22] - 50% of renters are "rent burdened"[25] - 92% of Americans believe homeownership is an essential part of the American dream[25] Financial Performance - Rocket Companies reported adjusted revenue of $1.340 billion for Q2 2025[87] - Adjusted EBITDA for Q2 2025 was $172 million[87] - The company's servicing portfolio includes $609 billion in serviced UPB (unpaid principal balance) and 2.8 million loans serviced[94] - Recurring servicing fee income is $1.6 billion[94] - The MSR (Mortgage Servicing Rights) fair value is $7.6 billion[94]

Financial Performance - Ocean Transportation revenue for the second quarter of 2025 decreased by 2.1% year-over-year to $675.6 million[49] - Logistics revenue for the second quarter of 2025 decreased by 1.7% year-over-year to $154.9 million[49] - Net income for the second quarter of 2025 decreased by 16.3% year-over-year to $94.7 million[49] - The terminal joint venture contribution was $7.3 million, a year-over-year increase of $6.1 million[42] - Approximately 0.9 million shares were repurchased in 2Q25 for a total cost of $93.7 million[57] Volume Trends - Hawaii container volume increased by 2.6% year-over-year due to higher general demand[8] - China container volume decreased by 14.6% year-over-year primarily due to market uncertainty and tariffs[22] - Guam container volume decreased by 2.2% year-over-year[25] - Alaska container volume increased by 0.9% year-over-year[35] Outlook - The company expects full year 2025 Ocean Transportation operating income to be moderately lower than the $500.9 million achieved in 2024[62] - The company expects full year 2025 Logistics operating income to be comparable to the $50.4 million achieved in 2024[62]