Market Newsdesk

May 7, 2026 6:04 am

Zai Lab Announces First Quarter 2026 Financial Results and Recent Corporate Updates

Zai Lab Announces First Quarter 2026 Financial Results and Recent Corporate Updates

– Total revenues of $99.6 million for the first quarter of 2026, reflecting anticipated first-quarter dynamics, including certain competitive impacts for ZEJULA and pricing adjustment related to NRDL renewal for VYVGART

– Zocilurtatug pelitecan (zoci) delivered standout data at AACR 2026, with a 62.5% confirmed intracranial ORR in SCLC patients with brain metastases, and clinically meaningful activity (38.2% confirmed ORR) across epNECs; registrational DLLEVATE trial ongoing with enrollment expected to complete in the first half of 2027

– Collaborations with Amgen and Boehringer Ingelheim to evaluate zoci in combination with tarlatamab in SCLC and obrixtamig in SCLC and other NECs, positioning zoci as a potential backbone therapy

– ZL-1503 (IL-13/IL-31Rα) demonstrated rapid, durable dual-pathway activity in preclinical data presented at IMMUNOLOGY2026, supporting less frequent dosing and broad potential across atopic diseases, including asthma; Phase 1/1b study underway with initial data expected in 2026

– KarXT launch preparations are underway and TIVDAK remains under regulatory review; positive Phase 3 readouts for povetacicept in IgAN and elegrobart in TED providing additional growth opportunities for our regional business

Conference call and webcast today, May 7, 2026, at 8:00 a.m. ET (8:00 p.m. HKT)

SHANGHAI & CAMBRIDGE, Mass.–(BUSINESS WIRE)–
Zai Lab Limited (NASDAQ: ZLAB; HKEX: 9688) today announced financial results for the first quarter of 2026, along with recent product highlights and corporate updates.

“We continue to accelerate the development of our global pipeline, with numerous clinical trials underway across oncology and immunology,” said Dr. Samantha Du, Founder, Chairperson and Chief Executive Officer of Zai Lab. “During the quarter, we made strong progress advancing zoci, with AACR data reinforcing its differentiated profile in both SCLC and epNECs, collaborations with Amgen and Boehringer Ingelheim to evaluate zoci as a potential backbone therapy, and rapid enrollment in the registrational DLLEVATE study, which is on track to be fully enrolled in the first half of 2027. We also continue to advance our growing portfolio of global clinical programs, including ZL-1503 (IL-13/IL-31Rα) for atopic dermatitis. This reflects the strength of our R&D engine, which is designed to scale and deliver a pipeline of differentiated new products. At the same time, our commercially profitable regional business provides a stable foundation, with several near-term opportunities expected to support future growth.”

“We are deepening our presence in key markets to capitalize on underlying demand for VYVGART and are expanding our regional footprint as we prepare for the launch of KarXT in China in the second quarter,” said Josh Smiley, President and Chief Operating Officer of Zai Lab. “Supported by national guidelines and an addressable population of ~8 million schizophrenia patients, KarXT’s launch positions us to bring the first novel therapy in decades to this critical market, with potential NRDL inclusion next year. In addition, we anticipate a potential regulatory approval for TIVDAK this year, and with positive Phase 3 readouts for povetacicept and elegrobart, we have additional opportunities for future growth. Across all efforts, we remain focused on driving consistent execution throughout our commercial portfolio.”

First Quarter 2026 Financial Results

Total revenue was$99.6 million in the first quarter of 2026, compared to $106.5 million for the same period in 2025, representing a decrease of 6% y-o-y. Product revenue, net was $95.6 million in the first quarter of 2026, compared to $105.7 million for the same period in 2025, representing a 10% y-o-y decrease, 12% y-o-y decrease at constant exchange rate (CER). This decrease was primarily driven by decreased sales for ZEJULA, partially offset by increased sales for XACDURO and NUZYRA:

– ZEJULA was $30.0 million in the first quarter of 2026, compared to $49.5 million for the same period in 2025. Sales declined due to a shift in hospital utilization patterns following volume-based procurement for generic olaparib.

– VYVGART was $17.6 million in the first quarter of 2026, compared to $18.1 million for the same period in 2025. Sales declined primarily due to a pricing adjustment related to NRDL renewal.

– XACDURO, was $8.6 million in the first quarter of 2026, compared to $1.1 million for the same period in 2025. Growth was driven by strong patient demand and expanding hospital adoption but was partially constrained by supply limitations.

– NUZYRA was $16.3 million in the first quarter of 2026, compared to $15.1 million for the same period in 2025. This growth was supported by increased market coverage and penetration.

Research and Development (R&D) expenses were $65.6 million in the first quarter of 2026, compared to $60.7 million for the same period in 2025. This increase was primarily due to increased clinical trial-related expenses and licensing fees.

Selling, General and Administrative (SG&A) expenses were $65.1 million in the first quarter of 2026, compared to $63.4 million for the same period in 2025. This increase was primarily driven by higher general selling expenses.

Loss from operations was $69.4 million in the first quarter of 2026, $51.9 million when adjusted to exclude certain non-cash expenses including depreciation, amortization, and share-based compensation. A reconciliation of loss from operations (GAAP) to adjusted loss from operations (non-GAAP) is included at the end of this release.

Net loss was $51.0 million in the first quarter of 2026, or a loss per ordinary share attributable to stockholders of $0.05 (or loss per American Depositary Share (ADS) of $0.46), compared to a net loss of $48.4 million for the same period in 2025, or a loss per ordinary share of $0.04 (or loss per ADS of $0.45). These increases in net loss were primarily due to lower product revenue and higher research and development expenses, partially offset by foreign currency gains.

Cash and cash equivalents, short-term investments, and current restricted cash totaled $761.3 million as of March 31, 2026, compared to $789.6 million as of December 31, 2025.

Recent Corporate Updates

In April 2026, we appointed Yizhe Wang, Ph.D., as Operating Partner, to strengthen Zai Lab’s commercial capabilities and execution. Dr. Wang brings extensive experience in global oncology and immunology commercial operations, having led commercial teams across China, the U.S., and the U.K. at GSK and Eli Lilly.

Recent Pipeline Highlights

Below are key product candidate updates since our last earnings release:

Oncology Pipeline

Zocilurtatug Pelitecan (zoci, DLL3-Targeting ADC) (formerly ZL-1310):

– In April 2026, Zai Lab presented compelling clinical data at the American Association for Cancer Research (AACR) Annual Meeting 2026 demonstrating that zoci delivers rapid and robust intracranial responses in patients with previously treated extensive stage small cell lung cancer (ES-SCLC) and brain metastases as measured by blinded independent assessment using mRANO-BM criteria, as well as promising data in patients with extrapulmonary neuroendocrine carcinomas (epNECs).

SCLC with Brain Metastases: Zoci showed a 53.7% confirmed intracranial objective response rate (iORR) with 62.5% (10/16) at the 1.6 mg/kg dose, including complete responses. Notably, responses were observed in patients without prior brain radiotherapy (9/15, 60%), highlighting the net drug effect on the intracranial lesions. Zoci was well tolerated, with Grade ≥3 treatment-related adverse events (TRAEs) in 19.9% (27/136) of the overall population and in 16.4% (9/55) of patients who received 1.6mg/kg.

epNECs: Encouraging activity was observed with a 38.2% confirmed objective response rate across epNEC tumors of different primary origins. The safety profile in epNEC was consistent with that previously observed in SCLC with Grade ≥3 TRAEs in 15.2% of patients in Phase 1b.

– In April 2026, Zai Lab announced a global clinical trial collaboration with Amgen to evaluate zoci in combination with Amgen’s IMDELLTRA^® (tarlatamab-dlle), a DLL3/CD3 bispecific T-cell engager (TCE), for ES-SCLC and a clinical collaboration with Boehringer Ingelheim to evaluate zoci in combination with obrixtamig, a DLL3/CD3 bispecific TCE, for SCLC and other NECs.

Immunology, Neuroscience, and Infectious Disease Pipeline

ZL-1503 (IL-13/IL-31Rα): In April 2026, Zai Lab announced new data from a preclinical study of ZL-1503, demonstrating that the company’s internally developed IL-13/IL-31Rα bispecific antibody may lead to sustained suppression of intense pruritus (itch) and inflammation caused by atopic diseases. The findings reinforce the potential of ZL-1503 to be a first-in-class treatment option for moderate-to-severe atopic dermatitis and other IL-13 and IL-31-driven diseases. A global Phase 1/1b study is ongoing and Zai Lab expects to report the first-in-human data from the global Phase 1 portion in the second half of 2026.

Povetacicept (APRIL/BAFF):

– IgA nephropathy (IgAN): In March 2026, Zai Lab partner Vertex announced positive data from a pre-specified Week 36 interim analysis of the global Phase 3 RAINIER trial of pove in IgA nephropathy (IgAN). The trial met its primary objective, with povetacicept-treated patients achieving a 52.0% reduction from baseline in 24-hour urine protein to creatinine ratio (UPCR), representing a statistically significant and clinically meaningful 49.8% UPCR reduction versus placebo (p<0.0001). Povetacicept was generally safe and well tolerated. Zai Lab participated in the global Phase 3 study in Greater China.

– Primary membranous nephropathy (pMN): Zai Lab partner Vertex has completed enrollment in the Phase 2 portion of the global pivotal Phase 2/3 OLYMPUS study and has initiated the Phase 3 portion. Zai Lab participated in the global study in Greater China.

Elegrobart (anti-IGF-1R, subcutaneous): Zai Lab partner Viridian Therapeutics announced positive topline data in both REVEAL-1 and REVEAL-2, elegrobart’s two pivotal phase 3 clinical trials for active and chronic TED, respectively. Elegrobart was generally well tolerated across both studies. Zai Lab holds an exclusive license from Zenas BioPharma to develop and commercialize elegrobart in Greater China and is currently conducting a Phase 3 bridging study in the region.

– REVEAL-1 in active TED: met its primary endpoint with a highly statistically significant treatment effect. Both elegrobart Q4W and Q8W treatment arms showed rapid onset of treatment effect and achieved clinically meaningful 54% and 63% proptosis responder rates, respectively, versus 18% placebo at week 24. The Q4W treatment arm additionally provided meaningful diplopia benefit to patients with active TED.

– REVEAL-2 in chronic TED: met its primary endpoint with a highly statistically significant treatment effect. Both elegrobart Q4W and Q8W treatment arms achieved statistically significant and clinically meaningful 50% and 54% proptosis responder rates, respectively, versus 15% placebo at week 24. The Q4W treatment arm additionally provided meaningful diplopia benefit to patients with chronic TED.

Anticipated Major Milestones in 2026

Expected Clinical Developments and Data Readouts

Global Pipeline

Zocilurtatug Pelitecan (zoci, DLL3-Targeting ADC) (formerly ZL-1310)

First-Line ES-SCLC: Zai Lab to provide data readout from the Phase 1 study evaluating zoci combination therapy (with atezolizumab and/or chemotherapy) in the second half of 2026 and advance zoci into a registrational study in 2026 based on emerging data.

Extrapulmonary NECs: Zai Lab to complete the enrollment for the global Phase 2 portion of the ongoing Phase 1b/2 study evaluating zoci in patients with selected solid tumors and advance into registrational development in 2026.

ZL-1503 (IL-13/IL-31Rα)

Zai Lab to provide the first-in-human data readout from the global Phase 1/1b study in 2026.

Regional Pipeline

Upcoming Potential NMPA Approvals

TIVDAK (Tisotumab Vedotin, Tissue Factor ADC) in recurrent or metastatic cervical cancer following progression on or after chemotherapy

Tumor Treating Fields (TTFields) in locally advanced pancreatic cancer

Expected Data Readouts

Efgartigimod (FcRn)

Myositis: Zai Lab partner argenx to provide topline results from the global Phase 2/3 ALKIVIA study evaluating autoimmune inflammatory myopathies (AIM or myositis) in the third quarter of 2026. Zai Lab participated in the study in Greater China.

Elegrobart (Anti-IGF-1R, subcutaneous)

Zai Lab to complete the enrollment for the Phase 3 registrational study in China in the third quarter of 2026.

Conference Call and Webcast Information

Zai Lab will host a live conference call and webcast today, May 7, 2026, at 8:00 a.m. ET (8:00 p.m. HKT). Listeners may access the live webcast by visiting the Company’s website at http://ir.zailaboratory.com. Participants must register in advance of the conference call.

Details are as follows:

Registration link for webcast (preferred): https://edge.media-server.com/mmc/p/s7q4ox5h

Registration link for dial-in: https://register-conf.media-server.com/register/BI802954894429400baf012f775762af29

All participants must use the link provided above to complete the online registration process in advance of the conference call. Dial-in details will be in the confirmation email which the participant will receive upon registering.

A replay will be available shortly after the call and can be accessed by visiting the Company’s website.

About Zai Lab

Zai Lab Limited (NASDAQ: ZLAB; HKEX: 9688) is an innovative, research-based, commercial-stage biopharmaceutical company based in China and the United States. We are focused on discovering, developing, and commercializing innovative products that address medical conditions with significant unmet needs in the areas of oncology, immunology, neuroscience, and infectious disease. Our goal is to leverage our competencies and resources to positively impact human health.

For additional information about Zai Lab, please visit www.zailaboratory.com or follow us at https://x.com/ZaiLab_Global.

Non-GAAP Measures

In addition to results presented in accordance with GAAP, we disclose growth rates that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into U.S. dollars. We have also presented a measure of adjusted loss from operations that adjusts GAAP loss from operations to exclude the impact of certain non-cash expenses including depreciation, amortization, and share-based compensation, which we refer to as “profitability.” These adjusted growth rates and adjusted loss from operations are non-GAAP measures. We believe that these non-GAAP measures are important for an understanding of the performance of our business operations and financial results and provide investors with an additional perspective on operational trends and greater transparency into our historical and projected operating performance. Although we believe the non-GAAP financial measures enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered an exclusive alternative to accompanying GAAP financial measures.

Zai Lab Forward-Looking Statements

This press release contains certain forward-looking statements, including statements relating to our strategy and plans; potential of and expectations for our business, commercial products, and pipeline programs; our goals, objectives, and priorities and our expectations under our growth strategy (including our expectations regarding our commercial products and launches, clinical stage products, revenue growth, profitability, and cash flow); clinical development programs and related clinical trials; clinical trial data, data readouts, and presentations; risks and uncertainties associated with drug development and commercialization; regulatory discussions, submissions, filings, and approvals and the timing thereof; the potential benefits, safety, and efficacy of our products and product candidates and those of our collaboration partners; the anticipated benefits and potential of investments, collaborations, and business development activities; our profitability and timeline to profitability; our future financial and operating results; and financial guidance, including with respect to our capital allocation and investment strategy and our expected path to profitability. All statements, other than statements of historical fact, included in this press release are forward-looking statements, and can be identified by words such as “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “poised,” “positioned,” “possible,” “potential,” “will,” “would,” and other similar expressions. Such statements constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees or assurances of future performance. Forward-looking statements are based on our expectations and assumptions as of the date of this press release and are subject to inherent uncertainties, risks, and changes in circumstances that may differ materially from those contemplated by the forward-looking statements. We may not actually achieve the plans, carry out the intentions, or meet the expectations or projections disclosed in our forward-looking statements, and you should not place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including but not limited to (1) our ability to successfully commercialize and generate revenue from our approved products; (2) our ability to obtain funding for our operations and business initiatives; (3) the results of our clinical and pre-clinical development of our product candidates; (4) the content and timing of decisions made by the relevant regulatory authorities regarding regulatory approvals of our product candidates; (5) risks related to doing business in China; and (6) other factors identified in our most recent annual and quarterly reports and in other reports we have filed with the U.S. Securities and Exchange Commission (SEC). We anticipate that subsequent events and developments will cause our expectations and assumptions to change, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Our SEC filings can be found on our website at www.zailaboratory.com and on the SEC’s website at www.SEC.gov.

Zai Lab Limited

Unaudited Condensed Consolidated Balance Sheets

(in thousands of U.S. dollars ($), except for number of shares and per share data)

March 31,

2026

December 31,

2025

Assets

Current assets

Cash and cash equivalents

651,316

679,573

Restricted cash, current

100,000

100,000

Short-term investments

10,000

10,000

Accounts receivable (net of allowance for credit losses of $16 and $31 as of March 31, 2026 and December 31, 2025, respectively)

54,069

106,116

Notes receivable

7,929

12,169

Inventories, net

85,961

74,745

Prepayments and other current assets

35,454

36,683

Total current assets

944,729

1,019,286

Restricted cash, non-current

1,117

1,116

Property and equipment, net

47,067

47,389

Operating lease right-of-use assets

17,585

19,152

Land use rights, net

2,868

2,853

Intangible assets, net

75,759

76,144

Deferred tax assets

3,444

3,390

Other non-current assets

3,168

3,054

Total assets

1,095,737

1,172,384

Liabilities and shareholders’ equity

Current liabilities

Accounts payable

126,169

141,608

Current operating lease liabilities

5,983

6,344

Short-term debt

213,819

204,530

Other current liabilities

47,011

63,684

Total current liabilities

392,982

416,166

Deferred income

28,627

27,333

Non-current operating lease liabilities

12,107

13,385

Other non-current liabilities

40

—

Total liabilities

433,756

456,884

Commitments and contingencies

Shareholders’ equity

Ordinary shares (par value of $0.000006 per share; 5,000,000,000 shares authorized; 1,118,835,190 and 1,113,822,550 shares issued as of March 31, 2026 and December 31, 2025, respectively; 1,110,232,620 and 1,106,389,340 shares outstanding as of March 31, 2026 and December 31, 2025, respectively)

7

7

Additional paid-in capital

3,357,826

3,343,469

Accumulated deficit

(2,679,636

)

(2,628,620

)

Accumulated other comprehensive income

15,105

29,697

Treasury Stock (at cost, 8,602,570 and 7,433,210 shares as of March 31, 2026 and December 31, 2025, respectively)

(31,321

)

(29,053

)

Total shareholders’ equity

661,981

715,500

Total liabilities and shareholders’ equity

1,095,737

1,172,384

Zai Lab Limited

Unaudited Condensed Consolidated Statements of Operations

(in thousands of $, except for number of shares and per share data)

Three Months Ended March 31,

2026

2025

Revenues

Product revenue, net

95,556

105,650

Collaboration revenue

4,055

837

Total revenues

99,611

106,487

Expenses

Cost of product revenue

(38,315

)

(38,452

)

Cost of collaboration revenue

(20

)

(195

)

Research and development

(65,591

)

(60,729

)

Selling, general, and administrative

(65,070

)

(63,422

)

Loss from operations

(69,385

)

(56,311

)

Interest income

6,447

8,606

Interest expenses

(1,637

)

(1,187

)

Foreign currency gains

14,837

651

Other income (expense), net

162

(197

)

Loss before income tax

(49,576

)

(48,438

)

Income tax expense

(1,440

)

—

Net loss

(51,016

)

(48,438

)

Loss per share – basic and diluted

(0.05

)

(0.04

)

Weighted-average shares used in calculating net loss per ordinary share – basic and diluted

1,107,390,590

1,080,825,300

Zai Lab Limited

Unaudited Condensed Consolidated Statements of Comprehensive Loss

(in thousands of $)

Three Months Ended March 31,

2026

2025

Net loss

(51,016

)

(48,438

)

Other comprehensive loss, net of tax of nil:

Foreign currency translation adjustments

(14,592

)

(1,212

)

Comprehensive loss

(65,608

)

(49,650

)

Zai Lab Limited

Non-GAAP Measures

(unaudited)

($ in thousands)

Growth on a Constant Exchange Rate (CER) Basis

Three Months Ended

March 31,

Year over Year %

Growth

2026

2025

As reported

At CER*

Product revenue, net

95,556

105,650

(10

)%

(12

)%

Loss from operations

(69,385

)

(56,311

)

23

%

22

%

* The growth rates at CER were calculated assuming the same foreign currency exchange rates were in effect for the current and prior year period

Reconciliation of Loss from Operations (GAAP) to Adjusted Loss from Operations (Non-GAAP)

Three Months Ended March 31,

2026

2025

GAAP loss from operations

(69,385

)

(56,311

)

Plus: Depreciation and amortization expenses

3,944

3,458

Plus: Share-based compensation

13,524

15,800

Adjusted loss from operations

(51,917

)

(37,053

)

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507022619/en/

For more information:

Investor Relations:

Christine Chiou / Cyan Liu

+1 (917) 886-6929 / +86 195 3130 8895

[email protected] / [email protected]

Media:

Shaun Maccoun / Xiaoyu Chen

+1 (415) 317-7255 / +86 185 0015 5011

[email protected] / [email protected]

KEYWORDS: Massachusetts China United States North America Asia Pacific

INDUSTRY KEYWORDS: Oncology Health Infectious Diseases Neurology Pharmaceutical Biotechnology

MEDIA:

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Posted on May 7, 2026 6:04 am
Lamar Advertising Company Announces First Quarter Ended March 31, 2026 Operating Results

Three Month Results

Net revenues were $528.0 million

Net income was $101.8 million

Adjusted EBITDA was $226.3 million

BATON ROUGE, La., May 07, 2026 (GLOBE NEWSWIRE) — Lamar Advertising Company (the “Company” or “Lamar”) (Nasdaq: LAMR), a leading owner and operator of outdoor advertising and logo sign displays, announces the Company’s operating results for the first quarter ended March 31, 2026.

“Our year is shaping up quite nicely, with strong demand from local and particularly national customers,” Lamar chief executive Sean Reilly said. “Our first-quarter results surpassed our internal forecasts, and our pacings have us trending at the top end of our previously provided guidance for full-year AFFO per diluted share. “

First Quarter Highlights

Net revenues increased 4.5%

Net income decreased 26.9%

Adjusted EBITDA increased 7.7%

AFFO increased 8.0%

First Quarter Results

Lamar reported net revenues of $528.0 million for the first quarter of 2026 versus $505.4 million for the first quarter of 2025, a 4.5% increase. Operating income for the first quarter of 2026 decreased $45.2 million to $146.1 million as compared to $191.2 million for the same period in 2025. Lamar recognized net income of $101.8 million for the first quarter of 2026 as compared to a net income of $139.2 million for the same period in 2025, a decrease of $37.4 million. The 26.9% decrease in net income for the first quarter of 2026 as compared to the same period in 2025 was primarily due to the $67.7 million gain, offset by the $13.1 million income tax expense, recorded in 2025 for the sale of Lamar’s equity interest in Vistar Media, Inc. (“Vistar”). Net income per diluted share was $1.00 and $1.35 for the three months ended March 31, 2026 and 2025, respectively.

Adjusted EBITDA for the first quarter of 2026 was $226.3 million versus $210.2 million for the first quarter of 2025, an increase of 7.7%.

Cash flow provided by operating activities was $147.4 million for the three months ended March 31, 2026 versus $127.7 million for the first quarter of 2025, an increase of $19.6 million. Free cash flow for the first quarter of 2026 was $152.4 million as compared to $121.1 million for the same period in 2025, a 25.8% increase.

For the first quarter of 2026, funds from operations, or FFO, was $167.8 million versus $156.1 million for the same period in 2025, an increase of 7.5%. Adjusted funds from operations, or AFFO, for the first quarter of 2026 was $177.5 million compared to $164.3 million for the same period in 2025, an increase of 8.0%. Diluted AFFO per share increased 7.5% to $1.72 for the three months ended March 31, 2026 as compared to $1.60 for the same period in 2025.

Acquisition-Adjusted Three Months Results

Acquisition-adjusted net revenue for the first quarter of 2026 increased 3.9% over acquisition-adjusted net revenue for the first quarter of 2025. Acquisition-adjusted EBITDA for the first quarter of 2026 increased 5.2% as compared to acquisition-adjusted EBITDA for the first quarter of 2025. Acquisition-adjusted net revenue and acquisition-adjusted EBITDA include adjustments to the 2025 period for acquisitions and divestitures for the same time frame as actually owned in the 2026 period. See “Reconciliation of Reported Basis to Acquisition-Adjusted Results”, which provides reconciliations to GAAP for acquisition-adjusted measures.

Liquidity

As of March 31, 2026, Lamar had $701.5 million in total liquidity that consisted of $662.2 million available for borrowing under its revolving senior credit facility and $39.3 million in cash and cash equivalents. There was $80.0 million in borrowings outstanding under the Company’s revolving credit facility and $242.1 million outstanding under the Accounts Receivable Securitization Program as of the same date.

Recent Developments

Subsequent to March 31, 2026, Lamar paid down $40.0 million of its outstanding borrowings under the Company’s revolving credit facility. Currently, there is $40.0 million in borrowings outstanding under the Company’s revolving credit facility and $250.0 million outstanding under the Accounts Receivable Securitization Program.

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding sales trends. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in these forward-looking statements. These risks and uncertainties include, among others: (1) our significant indebtedness; (2) the state of the economy and financial markets generally, and the effect of the broader economy on the demand for advertising, including economic changes that may result from new or increased tariffs, trade restrictions or geopolitical tensions, including war and armed conflicts; (3) the continued popularity of outdoor advertising as an advertising medium; (4) our need for and ability to obtain additional funding for operations, debt refinancing or acquisitions; (5) our ability to continue to qualify as a Real Estate Investment Trust (“REIT”) and maintain our status as a REIT; (6) the regulation of the outdoor advertising industry by federal, state and local governments; (7) the integration of companies and assets that we acquire and our ability to recognize cost savings or operating efficiencies as a result of these acquisitions; (8) changes in accounting principles, policies or guidelines; (9) changes in tax laws applicable to REITs or in the interpretation of those laws; (10) our ability to renew expiring contracts at favorable rates; (11) our ability to successfully implement our digital deployment strategy; and (12) the market for our Class A common stock. For additional information regarding factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the risk factors included in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, as supplemented by any risk factors contained in our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K. We caution investors not to place undue reliance on the forward-looking statements contained in this document. These statements speak only as of the date of this document, and we undertake no obligation to update or revise the statements, except as may be required by law.

Use of Non-GAAP Financial Measures

The Company has presented the following measures that are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”): adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), free cash flow, funds from operations (“FFO”), adjusted funds from operations (“AFFO”), diluted AFFO per share, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense. Our management reviews our performance by focusing on these key performance indicators not prepared in conformity with GAAP. We believe these non-GAAP performance indicators are meaningful supplemental measures of our operating performance and should not be considered in isolation of, or as a substitute for their most directly comparable GAAP financial measures.

Our Non-GAAP financial measures are determined as follows:

We define adjusted EBITDA as net income before income tax expense (benefit), interest expense (income), loss (gain) on extinguishment of debt and investments, equity in (earnings) loss of investee, stock-based compensation, depreciation and amortization, loss (gain) on disposition of assets and investments, transaction expenses and investments and capitalized contract fulfillment costs, net.

Adjusted EBITDA margin is defined as adjusted EBITDA divided by net revenues.

Free cash flow is defined as adjusted EBITDA less interest, net of interest income and amortization of deferred financing costs, current taxes, preferred stock dividends and total capital expenditures.

We use the National Association of Real Estate Investment Trusts definition of FFO, which is defined as net income before (gain) loss from the sale or disposal of real estate assets and investments, net of tax, and real estate related depreciation and amortization and including adjustments to eliminate unconsolidated affiliates and non-controlling interest.

We define AFFO as FFO before (i) straight-line income and expense; (ii) capitalized contract fulfillment costs, net; (iii) stock-based compensation expense; (iv) non-cash portion of tax expense (benefit); (v) non-real estate related depreciation and amortization; (vi) amortization of deferred financing costs; (vii) loss on extinguishment of debt; (viii) transaction expenses; (ix) non-recurring infrequent or unusual losses (gains); (x) less maintenance capital expenditures; and (xi) an adjustment for unconsolidated affiliates and non-controlling interest.

Diluted AFFO per share is defined as AFFO divided by adjusted weighted average diluted common shares/units outstanding. Adjusted weighted average diluted common shares/units outstanding is calculated by adjusting the Company’s weighted average diluted common shares to add the weighted average outstanding units of Lamar Advertising Limited Partnership (“Lamar LP”), the Company’s operating partnership, that are held by limited partners of Lamar LP other than the Company’s wholly owned subsidiary, Lamar Media Corp. Upon the satisfaction of certain conditions, these units of Lamar LP are redeemable for cash or, at the Company’s option, shares of the Company’s Class A common stock on a one-for-one basis.

Outdoor operating income is defined as operating income before corporate expenses, stock-based compensation, capitalized contract fulfillment costs, net, transaction expenses, depreciation and amortization and loss (gain) on disposition of assets and investments.

Acquisition-adjusted results adjusts our net revenue, direct and general and administrative expenses, outdoor operating income, corporate expense and EBITDA for the prior period by adding to, or subtracting from, the corresponding revenue or expense generated by the acquired or divested assets before our acquisition or divestiture of these assets for the same time frame that those assets were owned in the current period. In calculating acquisition-adjusted results, therefore, we include revenue and expenses generated by assets that we did not own in the prior period but acquired in the current period. We refer to the amount of pre-acquisition revenue and expense generated by or subtracted from the acquired assets during the prior period that corresponds with the current period in which we owned the assets (to the extent within the period to which this report relates) as “acquisition-adjusted results”.

Acquisition-adjusted consolidated expense adjusts our total operating expense to remove the impact of stock-based compensation, depreciation and amortization, transaction expenses, capitalized contract fulfillment costs, net, and loss (gain) on disposition of assets and investments. The prior period is also adjusted to include the expense generated by the acquired or divested assets before our acquisition or divestiture of such assets for the same time frame that those assets were owned in the current period.

Adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense are not intended to replace other performance measures determined in accordance with GAAP. Free cash flow, FFO and AFFO do not represent cash flows from operating activities in accordance with GAAP and, therefore, these measures should not be considered indicative of cash flows from operating activities as a measure of liquidity or of funds available to fund our cash needs, including our ability to make cash distributions. Adjusted EBITDA, free cash flow, FFO, AFFO, diluted AFFO per share, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense are presented as we believe each is a useful indicator of our current operating performance. Specifically, we believe that these metrics are useful to an investor in evaluating our operating performance because (1) each is a key measure used by our management team for purposes of decision making and for evaluating our core operating results; (2) adjusted EBITDA is widely used in the industry to measure operating performance as it excludes the impact of depreciation and amortization, which may vary significantly among companies, depending upon accounting methods and useful lives, particularly where acquisitions and non-operating factors are involved; (3) adjusted EBITDA, FFO, AFFO, diluted AFFO per share and acquisition-adjusted consolidated expense each provides investors with a meaningful measure for evaluating our period-over-period operating performance by eliminating items that are not operational in nature and reflect the impact on operations from trends in occupancy rates, operating costs, general and administrative expenses and interest costs; (4) acquisition-adjusted results is a supplement to enable investors to compare period-over-period results on a more consistent basis without the effects of acquisitions and divestitures, which reflects our core performance and organic growth (if any) during the period in which the assets were owned and managed by us; (5) free cash flow is an indicator of our ability to service debt and generate cash for acquisitions and other strategic investments; (6) outdoor operating income provides investors a measurement of our core results without the impact of fluctuations in stock-based compensation, depreciation and amortization and corporate expenses; and (7) each of our Non-GAAP measures provides investors with a measure for comparing our results of operations to those of other companies.

Our measurement of adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense may not, however, be fully comparable to similarly titled measures used by other companies. Reconciliations of adjusted EBITDA, FFO, AFFO, diluted AFFO per share, free cash flow, outdoor operating income, acquisition-adjusted results and acquisition-adjusted consolidated expense to the most directly comparable GAAP measures have been included herein.

Conference Call Information

A conference call will be held to discuss the Company’s operating results on Thursday, May 7, 2026 at 8:00 a.m. central time. Instructions for the conference call and Webcast are provided below:

Conference Call

All Callers: 1-800-420-1271 or 1-785-424-1634

Passcode: 63104

Live Webcast: ir.lamar.com

Webcast Replay: ir.lamar.com

Available through Thursday, May 14, 2026 at 11:59 p.m. Eastern Time

Company Contact: Buster Kantrow

Director of Investor Relations

(225) 926-1000

[email protected]

General Information

Founded in 1902, Lamar Advertising (Nasdaq: LAMR) is one of the largest outdoor advertising companies in North America, with over 359,000 displays across the United States and Canada. Lamar offers advertisers a variety of billboard, interstate logo, transit and airport advertising formats, helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional out-of-home inventory, Lamar is proud to offer its customers the largest network of digital billboards in the United States with over 5,600 displays.

LAMAR ADVERTISING COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

Three Months Ended

March 31,

2026 2025

Net revenues $ 528,004 $ 505,430

Operating expenses (income):

Direct advertising expenses 183,590 179,622

General and administrative expenses 91,496 89,201

Corporate expenses 26,590 26,386

Stock-based compensation 11,203 10,577

Capitalized contract fulfillment costs, net (275 ) 375

Depreciation and amortization 81,939 77,821

Gain on disposition of assets and investments (12,602 ) (69,785 )

Total operating expense 381,941 314,197

Operating income 146,063 191,233

Other (income) expense:

Interest income (371 ) (492 )

Interest expense 40,539 38,332

Equity in earnings of investee — (380 )

40,168 37,460

Income before income tax expense 105,895 153,773

Income tax expense 4,050 14,544

Net income 101,845 139,229

Net income attributable to non-controlling interest 558 474

Net income attributable to controlling interest 101,287 138,755

Preferred stock dividends 91 91

Net income applicable to common stock $ 101,196 $ 138,664

Earnings per share:

Basic earnings per share $ 1.00 $ 1.35

Diluted earnings per share $ 1.00 $ 1.35

Weighted average common shares outstanding:

Basic 101,373,840 102,437,911

Diluted 101,451,145 102,797,307

OTHER DATA

Free Cash Flow Computation:

Adjusted EBITDA $ 226,328 $ 210,221

Interest, net (38,475 ) (36,317 )

Current tax expense (2,272 ) (22,812 )

Preferred stock dividends (91 ) (91 )

Total capital expenditures (33,140 ) (29,887 )

Free cash flow $ 152,350 $ 121,114

SUPPLEMENTAL SCHEDULES

SELECTED BALANCE SHEET AND CASH FLOW DATA

(IN THOUSANDS)

March 31,

2026 December 31,

2025

Selected Balance Sheet Data:

Cash and cash equivalents $ 39,273 $ 64,812

Working capital deficit $ (308,585 ) $ (334,320 )

Total assets $ 6,913,348 $ 6,931,954

Total debt, net of deferred financing costs (including current maturities) $ 3,495,062 $ 3,418,907

Total stockholders’ equity $ 981,694 $ 1,024,779

Three Months Ended

March 31,

2026 2025

Selected Cash Flow Data:

Cash flows provided by operating activities $ 147,390 $ 127,745

Cash flows (used in) provided by investing activities $ (79,394 ) $ 65,426

Cash flows used in financing activities $ 93,427 $ 206,522

SUPPLEMENTAL SCHEDULES

UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES

(IN THOUSANDS)

Three Months Ended

March 31,

2026 2025

Reconciliation of Cash Flows Provided By Operating Activities to Free Cash Flow:

Cash flows provided by operating activities $ 147,390 $ 127,745

Changes in operating assets and liabilities 40,643 24,167

Total capital expenditures (33,140 ) (29,887 )

Preferred stock dividends (91 ) (91 )

Capitalized contract fulfillment costs, net (275 ) 375

Other (2,177 ) (1,195 )

Free cash flow $ 152,350 $ 121,114

Reconciliation of Net Income to Adjusted EBITDA:

Net income $ 101,845 $ 139,229

Interest income (371 ) (492 )

Interest expense 40,539 38,332

Equity in earnings of investee — (380 )

Income tax expense 4,050 14,544

Operating income 146,063 191,233

Stock-based compensation 11,203 10,577

Capitalized contract fulfillment costs, net (275 ) 375

Depreciation and amortization 81,939 77,821

Gain on disposition of assets and investments (12,602 ) (69,785 )

Adjusted EBITDA $ 226,328 $ 210,221

Capital expenditure detail by category:

Billboards – traditional $ 5,928 $ 6,046

Billboards – digital 13,131 16,076

Logo 4,441 2,606

Transit 502 588

Land and buildings 1,126 310

Operating equipment 8,012 4,261

Total capital expenditures $ 33,140 $ 29,887

SUPPLEMENTAL SCHEDULES

UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES

(IN THOUSANDS)

Three Months Ended

March 31,

2026 2025 % Change

Reconciliation of Reported Basis to Acquisition-Adjusted Results
^(a)
:

Net revenue $ 528,004 $ 505,430 4.5 %

Acquisitions and divestitures — 2,765

Acquisition-adjusted net revenue 528,004 508,195 3.9 %

Reported direct advertising and G&A expenses 275,086 268,823 2.3 %

Acquisitions and divestitures — (2,207 )

Acquisition-adjusted direct advertising and G&A expenses 275,086 266,616 3.2 %

Outdoor operating income 252,918 236,607 6.9 %

Acquisition and divestitures — 4,972

Acquisition-adjusted outdoor operating income 252,918 241,579 4.7 %

Reported corporate expense 26,590 26,386 0.8 %

Acquisitions and divestitures — (49 )

Acquisition-adjusted corporate expenses 26,590 26,337 1.0 %

Adjusted EBITDA 226,328 210,221 7.7 %

Acquisitions and divestitures — 5,021

Acquisition-adjusted EBITDA $ 226,328 $ 215,242 5.2 %

(a)   Acquisition-adjusted net revenue, direct advertising and general and administrative expenses, outdoor operating income, corporate expenses and EBITDA include adjustments to 2025 for acquisitions and divestitures for the same time frame as actually owned in 2026.

Three Months Ended

March 31,

2026 2025 % Change

Reconciliation of Net Income to Outdoor Operating Income:

Net income $ 101,845 $ 139,229 (26.9)%

Interest expense, net 40,168 37,840

Equity in earnings of investee — (380 )

Income tax expense 4,050 14,544

Operating income 146,063 191,233 (23.6)%

Corporate expenses 26,590 26,386

Stock-based compensation 11,203 10,577

Capitalized contract fulfillment costs, net (275 ) 375

Depreciation and amortization 81,939 77,821

Gain on disposition of assets and investments (12,602 ) (69,785 )

Outdoor operating income $ 252,918 $ 236,607 6.9 %

SUPPLEMENTAL SCHEDULES

UNAUDITED RECONCILIATIONS OF NON-GAAP MEASURES

(IN THOUSANDS)

Three Months Ended

March 31,

2026 2025 % Change

Reconciliation of Total Operating Expenses to Acquisition-Adjusted Consolidated Expense:

Total operating expenses $ 381,941 $ 314,197 21.6 %

Gain on disposition of assets and investments 12,602 69,785

Depreciation and amortization (81,939 ) (77,821 )

Capitalized contract fulfillment costs, net 275 (375 )

Stock-based compensation (11,203 ) (10,577 )

Acquisitions and divestitures — (2,256 )

Acquisition-adjusted consolidated expense $ 301,676 $ 292,953 3.0 %

SUPPLEMENTAL SCHEDULES

UNAUDITED REIT MEASURES

AND RECONCILIATIONS TO GAAP MEASURES

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

Three Months Ended

March 31,

2026 2025

Adjusted Funds from Operations:

Net income $ 101,845 $ 139,229

Depreciation and amortization related to real estate 77,073 73,636

Gain from sale or disposal of real estate assets and investments, net of tax (10,561 ) (56,597 )

Adjustments for unconsolidated affiliates and non-controlling interest (558 ) (126 )

Funds from operations $ 167,799 $ 156,142

Straight-line expense 1,164 1,009

Capitalized contract fulfillment costs, net (275 ) 375

Stock-based compensation expense 11,203 10,577

Non-cash portion of tax provision (193 ) (244 )

Non-real estate related depreciation and amortization 4,866 4,185

Amortization of deferred financing costs 1,693 1,523

Capitalized expenditures-maintenance (9,297 ) (9,385 )

Adjustments for unconsolidated affiliates and non-controlling interest 558 126

Adjusted funds from operations $ 177,518 $ 164,308

Weighted average diluted common shares outstanding⁽¹⁾ 101,451,145 102,797,307

Adjusted weighted average diluted common shares/units outstanding⁽²⁾ 103,074,560 102,797,307

Diluted AFFO per share $ 1.72 $ 1.60

⁽¹⁾ Utilized to calculate earnings per share in accordance with GAAP.
⁽²⁾ Utilized to calculated AFFO per share. Includes the weighted average outstanding units of Lamar LP (the Company’s operating partnership) that are held by limited partners of Lamar LP other than the Company’s wholly owned subsidiary, Lamar Media Corp. Upon the satisfaction of certain conditions, these units of Lamar LP are redeemable for cash or, at the Company’s option, shares of the Company’s Class A common stock on a one-for-one basis.

Posted on May 7, 2026 6:04 am
ACI Worldwide Reports Strong First Quarter 2026 Results and Raises Full-Year Guidance

ACI Worldwide Reports Strong First Quarter 2026 Results and Raises Full-Year Guidance

Q1 2026 HIGHLIGHTS

Revenue of $426 million increased 8% (6% in constant currency)

GAAP net income of $38 million and adjusted EBITDA of $105 million increased 12% (8% in constant currency)

GAAP EPS of $0.37 and adjusted EPS of $0.61 increased 20% (15% in constant currency)

Repurchased 1.5 million shares for $65 million

Raising full-year 2026 guidance range for both revenue & adjusted EBITDA

OMAHA, Neb.–(BUSINESS WIRE)–
ACI Worldwide (NASDAQ: ACIW), a leading provider of global payments technology, today announced financial results for the quarter ended March 31, 2026.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260507833085/en/

“Payments modernization continues to accelerate, and ACI is at the center of it,” said Thomas Warsop, President and CEO of ACI Worldwide. “In the quarter, Real Time Payments and Merchant each grew more than 20%, Biller delivered 10% growth on top of last year’s double‑digit performance, and new ARR bookings grew 39% across the company. At the same time, our ACI Connetic pipeline continues to expand, underscoring strong market demand for our cloud‑native payments platform. The decision last year to operate our Payment Software and Biller businesses as two distinct segments has sharpened our focus, accelerated organic growth, and consistently enabled us to outperform expectations. We are committed to our capital allocation framework, investing in organic growth, pursuing strategic M&A, and returning capital to shareholders.”

“We entered 2026 with momentum, executed ahead of expectations in the first quarter, and are raising our full‑year outlook,” Warsop concluded.

Q1 2026 FINANCIAL SUMMARY

In Q1 2026, total revenue was $426 million, up 8%, from Q1 2025, or up 6% on a constant currency basis. Recurring revenue was $313 million, up 10% from Q1 2025, or up 8% on a constant currency basis. Net income of $38 million in Q1 2026 compares to net income of $59 million in Q1 2025, which included a $22 million after-tax gain on the sale of our minority interest in Mindgate. GAAP diluted EPS in Q1 2026 was $0.37 and adjusted diluted EPS was $0.61, up 20% from Q1 2025, or up 15% on a constant currency basis.

Total adjusted EBITDA in Q1 2026 was $105 million, up 12% from Q1 2025, or up 8% on a constant currency basis. Net adjusted EBITDA margin in Q1 2026 was 38%, up from 36% in Q1 2025.

PAYMENT SOFTWARE SEGMENT RESULTS

Payment Software revenue in Q1 2026 was $214 million, up 6%, from Q1 2025, or up 2% on a constant currency basis. The segment saw particular strength from Real Time Payments and Merchant, which increased 22% and 21% on a constant currency basis, respectively, versus Q1 2025. Payments Intelligence revenue decreased 3% on a constant currency basis in the quarter. Issuing and Acquiring revenue decreased 6% on a constant currency basis, against a strong prior-year comparison that saw 87% growth in Q1 2025. Recurring revenue in the segment, which represents SaaS and Maintenance revenues, increased 9%, versus Q1 2025, or 6% on a constant currency basis. SaaS revenue in Payment Software was $50 million, up 15% versus Q1 2025, or up 11% on a constant currency basis.

Payment Software adjusted EBITDA in Q1 2026 was $113 million, up 6% on a reported basis, or up 2% on a constant currency basis from Q1 2025. Net adjusted EBITDA margin was 53%, consistent with Q1 2025.

BILLER SEGMENT RESULTS

Biller revenue in Q1 2026 was $212 million, up 10% from Q1 2025 on a reported and constant currency basis. The increase was driven by higher transaction volumes with existing customers and new customer wins. Biller revenue, net of interchange fees, was $66 million, up 5%, from Q1 2025.

Biller adjusted EBITDA in Q1 2026 was $34 million, up 10%, from Q1 2025. Net adjusted EBITDA margin, net of interchange fees, was 51%, up from 49% in Q1 2025, reflecting operating leverage from incremental volumes generated by existing customers.

NEW BOOKINGS

Net new ARR bookings in Q1 2026 were $12 million, up 39%, from Q1 2025. New license and services bookings were $50 million in Q1 2026, consistent with Q1 2025.

BALANCE SHEET AND LIQUIDITY, CASH FLOW, AND REPURCHASES

ACI ended Q1 2026 with $162 million in cash on hand and a debt balance of $812 million, representing a net debt leverage ratio of 1.3x adjusted EBITDA. ACI had total cash and available liquidity under its credit facility of $560 million. Operating cash flows were $64 million in Q1 2026, down from $78 million in Q1 2025, reflecting a higher concentration of contract signings late in the quarter.

During Q1 2026, the company repurchased 1.5 million shares for approximately $65 million. Since the start of 2025, the company has bought back 5.7 million shares, or over 5% of total shares outstanding. The company has approximately $391 million remaining available on the share repurchase authorization and continues to expect to allocate 50-60% of operating cash flow to share repurchases for the full year, subject to market conditions.

RAISING 2026 GUIDANCE

Based on Q1 2026 performance and the strength of its pipeline, the company is raising its full-year 2026 guidance. The company now expects revenue in the range of $1.89 billion to $1.92 billion, up from the prior range of $1.88 billion to $1.91 billion, and adjusted EBITDA in the range of $540 million to $555 million, up from $530 million to $550 million. For Q2 2026, the company expects revenue of $420 million to $440 million, and adjusted EBITDA of $85 million to $95 million.

CONFERENCE CALL TO DISCUSS FINANCIAL RESULTS

Today, management will host a conference call at 8:30 a.m. ET to discuss these results.

Participants may access the call as follows:

Webcast: http://investor.aciworldwide.com/

Pre-registration (recommended): https://events.q4inc.com/analyst/134451343?pwd=FRT1UsXC

Dial-in: +1 833 461 5787

Conference ID: 134451343

Pre-registration provides a unique passcode to join without operator assistance.

About ACI Worldwide

ACI Worldwide, an original innovator in global payments technology, delivers transformative software solutions that power intelligent payments orchestration in real time so banks, billers, and merchants can drive growth, while continuously modernizing their payment infrastructures, simply and securely. With 50 years of trusted payments expertise, we combine our global footprint with a local presence to offer enhanced payment experiences to stay ahead of constantly changing payment challenges and opportunities.

© Copyright ACI Worldwide, Inc. 2026.

ACI, ACI Worldwide, ACI Payments, Inc., ACI Pay, Speedpay and all ACI product/solution names are trademarks or registered trademarks of ACI Worldwide, Inc., or one of its subsidiaries, in the United States, other countries or both. Other parties’ trademarks referenced are the property of their respective owners.

To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude significant transaction-related expenses, as well as other significant non-cash expenses such as depreciation, amortization, and stock-based compensation, that we believe are helpful in understanding our past financial performance and our future results. The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP.

We believe that these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. Certain non-GAAP measures include:

Adjusted EBITDA: net income (loss) plus income tax expense (benefit), net interest income (expense), net other income (expense), depreciation, amortization and stock-based compensation, as well as significant transaction-related expenses. Adjusted EBITDA should be considered in addition to, rather than as a substitute for, net income (loss).

Net Adjusted EBITDA Margin: Adjusted EBITDA divided by revenue net of pass-through interchange revenue. Net Adjusted EBITDA Margin should be considered in addition to, rather than as a substitute for, net income (loss).

Adjusted Diluted EPS: diluted EPS plus tax effected significant transaction related items, amortization of acquired intangibles and software, and non-cash stock-based compensation. Adjusted diluted EPS should be considered in addition to, rather than as a substitute for, diluted EPS.

Recurring Revenue: revenue from software as a service and platform as a service fees and maintenance fees. Recurring revenue should be considered in addition to, rather than as a substitute for, total revenue.

ARR: New annual recurring revenue expected to be generated from new accounts, new applications, and add-on sales bookings contracts signed in the period.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “believes,” “will,” “expects,” “anticipates,” “intends,” and words and phrases of similar impact. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements in this press release include, but are not limited to: (i) payments modernization continues to accelerate, and ACI is at the center of it, (ii) our ACI Connetic pipeline continues to expand, underscoring strong market demand for our cloud‑native payments platform, (iii) we are committed to our capital allocation framework, investing in organic growth, pursuing strategic M&A, and returning capital to shareholders, (iv) our full‑year outlook including Q2 2026 and full-year 2026 revenue and adjusted EBITDA financial guidance, and (v) expectations to allocate 50-60% of operating cash flow to share repurchases for the full year, subject to market conditions.

All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, business interruptions, cybersecurity incidents or failure of our information technology and communication systems, security breaches, reliance on third-party cloud infrastructure and related services, reliance on third-parties, our ability to attract and retain senior management personnel and skilled technical employees, future acquisitions, strategic partnerships and investments, divestitures and other restructuring activities, implementation and success of our strategy, anti-takeover provisions, exposure to credit or operating risks arising from certain payment funding methods, loss caused by theft or fraud, customer reluctance to switch to a new vendor, our ability to adequately defend our intellectual property, litigation, consent orders and other compliance agreements, our offshore software development activities, risks from operating internationally, including fluctuations in currency exchange rates, adoption of ACI Connetic, adverse changes in the global economy, compliance of our products with applicable legislation, governmental regulations and industry standards, the complexity of our products and services and the risk that they may contain hidden defects, legal and business risks from artificial intelligence technology incorporated into our products, risks to our business from the use of artificial intelligence by our workforce, complex regulations applicable to our payments business, our compliance with privacy and cybersecurity regulations, compliance with requirements of the payment card networks and Nacha, exposure to unknown tax liabilities, changes in tax laws and regulations, consolidations and failures in the financial services industry, volatility in our stock price, demand for our products, failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or cancellation of customer projects or inaccurate project completion estimates, changes in card association and debit network fees or products, impairment of our goodwill or intangible assets, the accuracy of management’s backlog estimates, the cyclical nature of our revenue and earnings and the accuracy of forecasts due to the concentration of revenue-generating activity during the final weeks of each quarter, restrictions and other financial covenants in our debt agreements, our existing levels of debt, incurring additional debt, events outside of our control including natural disasters, wars, and outbreaks of disease, and revenues or revenue mix below expectations. For a detailed discussion of these risk factors, parties that are relying on the forward-looking statements should review our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)

March 31,

2026

December 31,

2025

ASSETS

Current assets

Cash and cash equivalents

$

161,757

$

196,462

Receivables, net of allowances

456,831

445,866

Settlement assets

460,893

397,346

Prepaid expenses

35,705

29,876

Other current assets

17,821

19,564

Total current assets

1,133,007

1,089,114

Noncurrent assets

Accrued receivables, net

369,078

391,719

Property and equipment, net

37,528

37,363

Operating lease right-of-use assets

26,526

28,733

Software, net

72,063

77,523

Goodwill

1,231,026

1,231,128

Intangible assets, net

141,439

147,062

Deferred income taxes, net

66,233

73,124

Other noncurrent assets

27,722

29,141

TOTAL ASSETS

$

3,104,622

$

3,104,907

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

$

61,842

$

64,931

Settlement liabilities

459,870

396,034

Employee compensation

31,716

56,142

Current portion of long-term debt

40,957

40,941

Deferred revenue

79,344

73,637

Other current liabilities

65,650

73,958

Total current liabilities

739,379

705,643

Noncurrent liabilities

Deferred revenue

12,651

13,620

Long-term debt

766,438

776,667

Deferred income taxes, net

38,006

38,514

Operating lease liabilities

20,500

22,609

Other noncurrent liabilities

27,012

28,776

Total liabilities

1,603,986

1,585,829

Commitments and contingencies

Stockholders’ equity

Preferred stock

—

—

Common stock

702

702

Additional paid-in capital

771,834

761,523

Retained earnings

1,863,049

1,824,743

Treasury stock

(1,026,803

)

(964,752

)

Accumulated other comprehensive loss

(108,146

)

(103,138

)

Total stockholders’ equity

1,500,636

1,519,078

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

3,104,622

$

3,104,907

ACI WORLDWIDE, INC.AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands, except per share amounts)

Three Months Ended March 31,

2026

2025

Revenues

Software as a service and platform as a service

$

261,957

$

237,083

License

88,041

84,493

Maintenance

50,918

48,642

Services

24,833

24,347

Total revenues

425,749

394,565

Operating expenses

Cost of revenue (1)

228,459

213,378

Research and development

44,092

38,908

Selling and marketing

30,236

32,186

General and administrative

40,216

27,592

Depreciation and amortization

25,256

23,985

Total operating expenses

368,259

336,049

Operating income

57,490

58,516

Other income (expense)

Interest expense

(12,198

)

(14,683

)

Interest income

3,606

4,064

Other, net

1,526

23,740

Total other income (expense)

(7,066

)

13,121

Income before income taxes

50,424

71,637

Income tax expense

12,118

12,767

Net income

$

38,306

$

58,870

Income per common share

Basic

$

0.38

$

0.56

Diluted

$

0.37

$

0.55

Weighted average common shares outstanding

Basic

101,922

105,350

Diluted

102,843

106,827

(1) The cost of revenue excludes charges for depreciation but includes amortization of purchased and developed software for resale.

ACI WORLDWIDE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited and in thousands)

Three Months Ended March 31,

2026

2025

Cash flows from operating activities:

Net income

$

38,306

$

58,870

Adjustments to reconcile net income to net cash flows from operating activities:

Depreciation

3,400

3,156

Amortization

21,919

20,829

Amortization of operating lease right-of-use assets

2,337

2,435

Amortization of deferred debt issuance costs

412

650

Deferred income taxes

6,328

(2,463

)

Stock-based compensation expense

16,957

11,627

Gain on sale of equity investment

—

(25,927

)

Other

(590

)

(718

)

Changes in operating assets and liabilities:

Receivables

10,160

41,640

Accounts payable

937

7,479

Accrued employee compensation

(24,289

)

(25,182

)

Deferred revenue

4,903

(4,648

)

Other current and noncurrent assets and liabilities

(16,533

)

(9,527

)

Net cash flows from operating activities

64,247

78,221

Cash flows from investing activities:

Purchases of property and equipment

(3,003

)

(2,170

)

Purchases of software

(11,508

)

(6,759

)

Proceeds from sale of equity investment

—

46,021

Net cash flows from investing activities

(14,511

)

37,092

Cash flows from financing activities:

Proceeds from issuance of common stock

905

813

Proceeds from exercises of stock options

64

582

Repurchase of stock-based compensation awards for tax withholdings

(3,839

)

(7,070

)

Repurchases of common stock

(65,277

)

(14,408

)

Proceeds from revolving credit facility

15,000

—

Repayment of revolving credit facility

(15,000

)

(70,000

)

Repayment of term portion of credit agreement

(10,625

)

(9,375

)

Payments on or proceeds from other debt, net

(3,539

)

(4,217

)

Net increase in settlement assets and liabilities

18,126

88,324

Net cash flows from financing activities

(64,185

)

(15,351

)

Effect of exchange rate fluctuations on cash

(2,419

)

1,791

Net increase (decrease) in cash and cash equivalents

(16,868

)

101,753

Cash and cash equivalents, including settlement deposits, beginning of period

258,996

265,018

Cash and cash equivalents, including settlement deposits, end of period

$

242,128

$

366,771

Reconciliation of cash and cash equivalents to the Consolidated Balance Sheets

Cash and cash equivalents

$

161,757

$

230,057

Settlement deposits

80,371

136,714

Total cash and cash equivalents

$

242,128

$

366,771

Three Months Ended March 31,

Adjusted EBITDA (millions)

2026

2025

Net income

$

38.3

$

58.9

Plus:

Income tax expense

12.1

12.8

Net interest expense

8.6

10.6

Net other income

(1.5

)

(23.7

)

Depreciation expense

3.4

3.2

Amortization expense

21.9

20.8

Non-cash stock-based compensation expense

17.0

11.6

Adjusted EBITDA before significant transaction-related expenses

$

99.8

$

94.1

Significant transaction-related expenses:

Cost reduction strategies

$

5.4

$

—

Adjusted EBITDA

$

105.2

$

94.1

Revenue, net of interchange:

Revenue

$

425.7

$

394.6

Interchange

146.2

130.8

Revenue, net of interchange

$

279.5

$

263.8

Net adjusted EBITDA margin

38

%

36

%

Three Months Ended March 31,

Segment Information (millions)

2026

2025

Revenue

Payment Software

$

213.5

$

200.7

Biller

212.3

193.9

Total

$

425.7

$

394.6

Recurring revenue

Payment Software

$

100.6

$

91.9

Biller

212.3

193.8

Total

$

312.9

$

285.7

Segment adjusted EBITDA

Payment Software

$

113.3

$

106.6

Biller

34.0

30.9

Note: Amounts may not recalculate due to rounding.

Three Months Ended March 31,

2026

2025

EPS Impact of Non-cash and Significant Transaction-related Items (millions)

EPS Impact

$ in Millions

(Net of Tax)

EPS Impact

$ in Millions

(Net of Tax)

GAAP net income

$

0.37

$

38.3

$

0.55

$

58.9

Adjusted for:

Gain on sale of equity investment

—

—

(0.20

)

(21.7

)

Significant transaction-related expenses

0.04

4.1

—

—

Amortization of acquisition-related intangibles

0.04

4.2

0.04

4.1

Amortization of acquisition-related software

0.03

3.3

0.03

3.2

Non-cash stock-based compensation

0.13

13.4

0.09

9.2

Total adjustments

$

0.24

$

25.0

$

(0.04

)

$

(5.2

)

Adjusted Diluted EPS

$

0.61

$

63.3

$

0.51

$

53.7

Three Months Ended March 31,

Recurring Revenue (millions)

2026

2025

SaaS and PaaS fees

$

262.0

$

237.1

Maintenance fees

50.9

48.6

Recurring revenue

$

312.9

$

285.7

New Bookings (millions)

Three Months Ended March 31,

TTM Ended March 31,

2026

2025

2026

2025

Annual recurring revenue (ARR) bookings

$

12.4

$

8.9

$

73.8

$

68.3

License and services bookings

49.5

50.0

254.1

312.8

Note: Amounts may not recalculate due to rounding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507833085/en/

For more information contact:

Investor Relations

John Kraft

SVP, Head of Strategy and Finance

305-894-2223 / [email protected]

KEYWORDS: Nebraska United States North America

INDUSTRY KEYWORDS: Software Networks Internet Payments Finance Professional Services Technology Fintech

MEDIA:

Logo

Posted on May 7, 2026 6:04 am
Gyre Therapeutics Reports First Quarter 2026 Results and Provides Business Update

Q1 2026 revenue of $22.5 million; GAAP basic EPS: $(0.10)

Full year 2026 revenue guidance of $100.5 to $111.0 million affirmed

NDA for F351 (hydronidone) for CHB-associated liver fibrosis submitted to China’s CDE in March 2026

Completed acquisition of Cullgen in an approximately $300 million all-stock transaction, expanding pipeline into inflammatory diseases and cancers

First patient enrolled in Phase 2/3 trial evaluating ETUARY
^™
for radiation-induced lung injury, including immune-related pneumonitis

SAN DIEGO, May 07, 2026 (GLOBE NEWSWIRE) — Gyre Therapeutics, Inc. (Gyre, the Company or Gyre Therapeutics) (Nasdaq: GYRE), an innovative, commercial stage biopharmaceutical company with operations in the United States and China, today announced financial results for the first quarter ended March 31, 2026, and provided a business update.

“Building on our successful pre-NDA meeting with China’s CDE at the beginning of the year, we are particularly encouraged by the NMPA’s priority review designation for F351, reinforcing both the strength of our clinical data and the significant unmet need in liver fibrosis,” said Ying Luo, Chief Executive Officer of Gyre Therapeutics. “In parallel, our acquisition of Cullgen expands our capabilities into targeted protein degradation, positioning Gyre to drive long-term innovation beyond fibrosis. We believe these achievements strengthen our foundation as a fully integrated, multi-national biopharmaceutical company as we advance our mission to deliver transformative therapies to patients worldwide.”

First Quarter Business Highlights and Upcoming Milestones

Commercial Products:

ETUARY^™ (pirfenidone), the Company’s primary product, generated $21.0 million in sales for the quarter ended March 31, 2026, compared to $21.7 million for the same period in 2025. Etorel^™ (nintedanib ethanesulfonate soft capsules), which was launched in June 2025, generated $0.7 million in sales for the quarter ended March 31, 2026. Contiva^™ (avatrombopag maleate tablets), launched in March 2025, generated $0.8 million in sales for the quarter ended March 31, 2026, compared to $0.3 million for the same period in 2025.

Pipeline Development Updates

Hydronidone (F351):

In March 2026, Gyre announced that the Center for Drug Evaluation (CDE) of China’s National Medical Products Administration (NMPA) granted priority review designation to F351 for the treatment of chronic hepatitis B (CHB)-associated liver fibrosis. Subsequently, Gyre, through its majority-owned subsidiary Gyre Pharmaceuticals Co., Ltd., submitted a New Drug Application (NDA) to the CDE to seek conditional approval for this indication, which is currently under completeness review for acceptance.

Pirfenidone (ETUARY^™):

A Phase 3 trial of pirfenidone for the treatment of pneumoconiosis (PD) in the People’s Republic of China (PRC) completed enrollment in 2025. A total of 272 patients were enrolled evaluating the efficacy and safety of 52 weeks of pirfenidone capsule treatment in patients with PD versus placebo. The final patient is expected to complete the study in the third quarter of 2026.

In April 2026, Gyre initiated its adaptive Phase 2/3 clinical trial in oncology-related pulmonary complications, with the first patient enrolled. The trial is evaluating pirfenidone for radiation-induced lung injury (RILI), including cases complicated by immune-related pneumonitis, at leading oncology centers.

Corporate Updates:

In March 2026, Gyre announced its acquisition of Cullgen Inc., a clinical-stage biopharmaceutical company, to create a fully integrated biopharmaceutical company with U.S.- and China-based capabilities. The transaction was completed in May 2026. The acquisition will supplement Gyre’s fibrosis-focused pipeline with novel targeted protein degrader and degrader antibody conjugate product candidates designed to eliminate therapeutically relevant proteins in patients for the treatment of critical conditions including inflammatory diseases and cancers.

Concurrent with the acquisition of Cullgen, Gyre is undertaking a comprehensive evaluation of its pipeline and clinical development strategy to prioritize programs across the combined organization. The Company intends to provide further updates regarding its strategic direction upon completion of this evaluation.

Financial Results

Cash Position

As of March 31, 2026, Gyre held $37.5 million in cash and cash equivalents, $12.3 million in short-term bank deposits, and $29.4 million in long-term certificates of deposit, totaling $79.2 million. Compared to $75.9 million as of December 31, 2025, total cash increased by $3.3 million, or 4%, primarily driven by higher customer collections and reduced tax payments.
Financial Results for the Three Months Ended March 31, 2026

Revenues: Revenues for the three months ended March 31, 2026 were $22.5 million, compared to $22.1 million for the same period in 2025. The $0.4 million, or 2%, increase was primarily due to the increase in Contiva^™ and Etorel^™ sales by approximately $0.5 million and $0.7 million, respectively, partially offset by the decrease in ETUARY^™ sales and other products sales by approximately $0.7 million and $0.1 million, respectively. Contiva^™ was launched in March 2025, and Etorel^™ was not commercially launched until June 2025. ETUARY^™ revenue declined by approximately 3% year-over-year, primarily attributable to the seasonal fluctuation in 2026 compared to 2025.

Cost of Revenues: For the three months ended March 31, 2026, cost of revenues was $1.2 million, compared to $0.9 million for the same period in 2025. The $0.3 million, or 37%, increase was primarily driven by to a $0.3 million rise in early production costs for Etorel^™ cost of sales and a $0.2 million increase in stock-based compensation expense, partially offset by a $0.2 million decrease in ETUARY^™ cost of sales.

Selling and Marketing Expense: For the three months ended March 31, 2026, selling and marketing expense was $14.1 million, compared to $10.8 million for the same period in 2025. The $3.3 million, or 30%, increase was primarily driven by to a $2.9 million increase in promotion expenses for Etorel^™ and Contiva^™, and early-stage preparation activities for F351 commercial launch, and a $1.0 million increase in stock-based compensation expense, partially offset by a $0.5 million decrease in staff cost due to a decrease in bonus and a $0.1 million decrease in travel and other expenses.

Research and Development Expense: For the three months ended March 31, 2026, research and development expense was $6.7 million, compared to $3.1 million for the same period in 2025. The $3.6 million, or 118%, increase was primarily attributable to Gyre Pharmaceuticals and was driven by a $2.0 million increase in clinical research expenses, primarily relating to the Phase 3c and other clinical trial for F351 in the PRC requested by NMPA. The increase also reflects a $0.5 million increase in materials and utilities expenses, and a $1.1 million increase attributable to Gyre Therapeutics’ pre-clinical activities for future investigational new drug (IND) filings in the United States. These costs represent planned investments and are expected to continue in the near- to medium-term.

General and Administrative Expense: For the three months ended March 31, 2026, general and administrative expense was $7.3 million, compared to $5.0 million for the same period in 2025. The $2.3 million, or 46%, increase was primarily driven by a $0.8 million increase in stock-based compensation costs, a $0.9 million increase in staff costs due to the Company’s internal realignment of responsibilities and compensation adjustments, and a $0.6 million increase in miscellaneous expenses.

Transaction Costs: For the three months ended March 31, 2026, $2.5 million transaction costs were incurred in connection with the acquisition of Cullgen. As the merger transaction closed in early May 2026, we expect there will be additional non-recurring transaction costs incurred after the first quarter of 2026.

(Loss) Income from Operations: For the three months ended March 31, 2026, loss from operations was $9.4 million, compared to income from operations of $2.3 million for the same period in 2025. The $11.7 million decrease was primarily driven by $12.1 million increase in total operating expense driven by transactions costs, increased stock based compensation, expanded marketing expenses for Etorel^™ and Contiva^™, early-stage preparation activities for ETUARY^™ and Phase 3c and other clinical trial and pre-clinical activities, partially offset by a $0.4 million increase in revenue.

Net (Loss) Income: For the three months ended March 31, 2026, net loss was $9.9 million, compared to net income of $3.7 million for the same period in 2025. The $13.6 million decrease was primarily driven by an increase in operating expenses of $12.1 million, a decrease in other income of $2.2 million, partially offset by a decrease in income tax expense of $0.3 million, and an increase in revenue of $0.4 million.

Non-GAAP Adjusted Net (Loss) Income: For the three months ended March 31, 2026, non-GAAP adjusted net loss was $4.2 million, compared to non-GAAP adjusted net income of $2.9 million for the same period in 2025. The $7.1 million decrease was primarily driven by the increase in operating expenses of $5.6 million and a decrease in other income of $2.2 million, offset by an increase in revenue of $0.4 million and a decrease in income tax expenses of $0.3 million.

Use of Non-GAAP Financial Measures by Gyre Therapeutics, Inc.

Gyre reports financial results in accordance with accounting principles generally accepted in the United States (“GAAP”). This release presents the financial measure “adjusted net income,” which is not calculated in accordance with GAAP. The most directly comparable GAAP measure for this non-GAAP financial measure is “net income.” Adjusted net income presents Gyre’s results of operations after excluding gain from change in fair value of warrants, stock-based compensation, and provision for income taxes. This is meant to supplement, and not substitute, Gyre’s financial information presented in accordance with GAAP. Adjusted net income as defined by Gyre may not be comparable to similar non-GAAP measures presented by other companies. Management believes that presenting adjusted net income provides investors with additional useful information in evaluating Gyre’s performance and valuation. See the reconciliation of adjusted net income to net income in the section titled “Reconciliation of GAAP to Non-GAAP Financial Measures” below.

About F351

F351 is Gyre’s lead development candidate for the treatment of liver fibrosis that is being developed for two different indications. It is a structurally modified derivative of pirfenidone designed to optimize metabolic properties while targeting the TGF-β1 signaling pathway, a key mediator of fibrogenesis. Gyre is developing F351 for two primary indications: Chronic hepatitis B (CHB)-associated liver fibrosis in the PRC and MASH-associated liver fibrosis initially in the United States.

In the United States, Gyre has completed a Phase 1 clinical trial in healthy volunteers evaluating F351’s safety, tolerability, and PK. Gyre plans to file an Investigational New Drug (IND) application in the U.S. by the end of 2026, and, if the IND becomes effective, initiate a Phase 2 clinical trial.

About Gyre Pharmaceuticals

Gyre Pharmaceuticals is a commercial-stage biopharmaceutical company committed to the research, development, manufacturing and commercialization of innovative drugs for organ fibrosis. Its flagship product, ETUARY^™, was the first approved treatment for idiopathic pulmonary fibrosis in the PRC in 2011 and has maintained a prominent market share (2025 net sales of $116.6 million). In addition, Gyre Pharmaceuticals’ pipeline includes F351, a structural analogue of pirfenidone, which demonstrated statistically significant fibrosis regression after 52 weeks of treatment in a pivotal Phase 3 clinical trial in CHB-associated liver fibrosis in the PRC. F351 received Breakthrough Therapy designation by the NMPA CDE in March 2021. CDE granted priority review status to the NDA for F351 in March 2026. In March 2026, Gyre Pharmaceuticals Co., Ltd., submitted its NDA to the CDE to seek conditional approval for F351. Gyre Pharmaceuticals is also developing treatments for pneumoconiosis, RILI with or without immune-related pneumonitis, chronic obstructive pulmonary disease, pulmonary arterial hypertension and acute/acute-on-chronic liver failure. As of the first quarter of 2026, Gyre Therapeutics owns a 69.7% equity interest in Gyre Pharmaceuticals.

About Gyre Therapeutics

Gyre Therapeutics is a commercial-stage biopharmaceutical company headquartered in San Diego, CA focused on the development and commercialization of small-molecule therapeutics with its most advanced programs addressing organ fibrosis and inflammatory diseases.

Gyre’s wholly-owned subsidiary, Cullgen Inc., is a clinical-stage biopharmaceutical company focused on the discovery and development of targeted protein degrader and degrader-antibody conjugate (DAC) therapies for critical conditions including cancer and inflammatory diseases. Cullgen has created a portfolio of highly selective targeted protein degrader and DAC product candidates designed to potently and efficiently eliminate therapeutically relevant proteins in patients.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, which statements are subject to substantial risks and uncertainties and are based on estimates and assumptions. All statements, other than statements of historical facts included in this press release, are forward-looking statements, including statements concerning: the expectations regarding Gyre’s research and development efforts and the timing of expected clinical readouts and regulatory filings, including the timing of the CDE’s review of Gyre Pharmaceuticals’ submission of formal NDA for F351 as a treatment for CHB-induced liver fibrosis and Gyre Pharmaceuticals’ adaptive Phase 2/3 trial of pirfenidone for the treatment of RILI, the future operations of Gyre, the nature, strategy and focus of Gyre, the development and commercial potential and potential benefits of any product candidates of Gyre, the ability of Cullgen’s degraders and DACs to strengthen Gyre’s asset portfolio and the additional expected benefits of the acquisition, including Gyre’s ability to successfully integrate the businesses and operations of Gyre and Cullgen. In some cases, you can identify forward-looking statements by terms such as “may,” “might,” “will,” “objective,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “design,” “estimate,” “predict,” “potential,” “plan” or the negative of these terms, and similar expressions intended to identify forward-looking statements. These statements reflect our plans, estimates, and expectations, as of the date of this press release. These statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the forward-looking statements expressed or implied in this press release. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation: Gyre’s ability to execute on its clinical development strategies; positive results from a clinical trial may not necessarily be predictive of the results of future or ongoing clinical trials; the timing or likelihood of regulatory filings and approvals; competition from competing products; the impact of general economic, health, industrial or political conditions in the United States or internationally; the sufficiency of Gyre’s capital resources and its ability to raise additional capital; supply chain and distribution delays and challenges. Additional risks and factors are identified under “Risk Factors” in Gyre’s Annual Report on Form 10-K for the year ended December 31, 2025 filed on March 13, 2026 and in other filings with the Securities and Exchange Commission.

Gyre expressly disclaims any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

Contact:

Ying Luo, Chief Executive Officer and President

[email protected]

Gyre Therapeutics, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except share and per share amounts)
(Unaudited)

Three Months Ended March 31,

2026 2025

Revenues $ 22,519 $ 22,058

Operating expenses:

Cost of revenues 1,227 894

Selling and marketing 14,136 10,841

Research and development 6,738 3,095

General and administrative 7,220 4,955

Transaction costs 2,553 —

Total operating expenses 31,874 19,785

(Loss) income from operations (9,355 ) 2,273

Other income, net:

Change in fair value of warrant liability 89 2,255

Other income, net 29 107

(Loss) income before income taxes (9,237 ) 4,635

Provision for income taxes (621 ) (901 )

Net (loss) income (9,858 ) 3,734

Net (loss) income attributable to noncontrolling interest (1,167 ) 1,036

Net (loss) income available to common stockholders $ (8,691 ) $ 2,698

Net (loss) income per share attributable to common stockholders:

Basic $ (0.10 ) $ 0.03

Diluted $ (0.10 ) $ 0.00

Weighted average shares used in calculating net income per share attributable to common stockholders:

Basic 91,317,142 86,420,530

Diluted 91,344,584 101,970,672

Gyre Therapeutics, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share and per share amounts)
(Unaudited)

March 31, 2026 December 31, 2025

(Unaudited)

Assets

Current assets:

Cash and cash equivalents $ 37,501 $ 37,070

Short-term bank deposits 12,307 15,355

Notes receivable 3,817 5,638

Accounts receivables, net 22,763 31,078

Other receivables from GNI 230 230

Inventories 11,352 10,171

Prepaid assets and other current assets 3,762 2,827

Total current assets: 91,732 102,369

Property and equipment, net 23,572 23,599

Intangible assets, net 4,627 4,727

Deferred tax assets 7,723 6,873

Long-term certificates of deposit 29,419 23,516

Other assets, noncurrent 4,942 5,048

Total assets $ 162,015 $ 166,132

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable $ 265 $ 124

Due to related parties 226 227

Accrued expenses and other current liabilities 15,415 14,359

Income tax payable 3,131 2,940

Operating lease liabilities, current 751 636

Total current liabilities: 19,788 18,286

Operating lease liabilities, noncurrent 72 303

Deferred government grants 840 852

Warrant liability, noncurrent 2,872 2,961

Other noncurrent liabilities 1,458 1,448

Total liabilities 25,030 23,850

Stockholders’ equity:

Common stock, $0.001 par value, 400,000,000 shares authorized; 91,337,121 shares and 91,314,007 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively 91 91

Additional paid-in capital 174,651 172,047

Statutory reserve 3,648 3,098

Accumulated deficit (77,667 ) (68,426 )

Accumulated other comprehensive income (loss) 586 (779 )

Total Gyre stockholders’ equity 101,309 106,031

Noncontrolling interest 35,676 36,251

Total equity 136,985 142,282

Total liabilities and stockholders’ equity $ 162,015 $ 166,132

Gyre Therapeutics, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands)
(Unaudited)

Three Months Ended March 31,

2026 2025

Net (loss) income $ (9,858 ) $ 3,734

Gain from change in fair value of warrant liability⁽¹⁾ (89 ) (2,255 )

Stock-based compensation 2,583 507

Provision for income taxes 621 901

Transaction costs⁽²⁾ 2,553 —

Loss on disposal of assets, net⁽³⁾ 16 —

Non-GAAP adjusted net (loss) income $ (4,174 ) $ 2,887

(1)   Reflects adjustments for fair value of warrants based on the Black-Scholes option pricing model.

(2)   Reflects non-recurring expenses related to the transaction costs to acquire Cullgen Inc.

(3)   Reflects non-recurring losses from the disposal of assets that are not part of the Company’s ongoing operations.

Posted on May 7, 2026 6:04 am
Ares Commercial Real Estate Corporation Reports First Quarter 2026 Results

Ares Commercial Real Estate Corporation Reports First Quarter 2026 Results

First quarter GAAP net income (loss) of $(9.6) million or $(0.17) per diluted common share and Distributable Earnings¹of $3.2 million or $0.06per diluted common share

– Subsequent to the three months ended March 31, 2026 –

Closed $95 million of new loan commitments

Declared second quarter 2026 dividend of $0.15 per common share

NEW YORK–(BUSINESS WIRE)–
Ares Commercial Real Estate Corporation (the “Company”) (NYSE:ACRE), a specialty finance company primarily engaged in directly originating and investing in commercial real estate loans and related investments, reported generally accepted accounting principles (“GAAP”) net income (loss) of $(9.6) million or $(0.17) per diluted common share and Distributable Earnings¹of $3.2 million or $0.06 per diluted common share for the first quarter of 2026.

“Supported by stable commercial real estate fundamentals, we maintained our investment momentum in the first quarter and grew the portfolio with the closing of $294 million of new loan commitments,” said Bryan Donohoe, Chief Executive Officer of Ares Commercial Real Estate Corporation. “We remain highly focused on resolving the remaining risk rated 4 and 5 loans and REO properties alongside selectively investing in high quality new loans in order to reshape and grow our portfolio.”

“During the first quarter, we maintained our balance sheet flexibility through additional repayments in the loan portfolio, disciplined liquidity and liability management and expanded borrowing capacity,” said Jeff Gonzales, Chief Financial Officer of Ares Commercial Real Estate Corporation. “We enhanced our financing structure by increasing the capacity on two of our secured funding facilities by $300 million to support future growth and lowered our borrowing costs through the redemption of the FL4 CLO.”

_________________________________

(1) Distributable Earnings (Loss) is a non-GAAP financial measure. Refer to Schedule I for the definition and reconciliation of Distributable Earnings (Loss).

COMMON STOCK DIVIDEND

On February 10, 2026, the Board of Directors of the Company declared a regular cash dividend of $0.15 per common share for the first quarter of 2026. The first quarter 2026 dividend was paid on April 15, 2026 to common stockholders of record as of March 31, 2026.

On May 7, 2026, the Board of Directors of the Company declared a regular cash dividend of $0.15 per common share for the second quarter of 2026. The second quarter 2026 dividend will be payable on July 15, 2026 to common stockholders of record as of June 30, 2026.

ADDITIONAL INFORMATION

The Company issued a presentation of its first quarter 2026 results, which can be viewed at www.arescre.com on the Investor Resources section of our home page under Events and Presentations. The presentation is titled “First Quarter 2026 Earnings Presentation.” The Company also filed its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 with the U.S. Securities and Exchange Commission on May 7, 2026.

CONFERENCE CALL AND WEBCAST INFORMATION

On Thursday, May 7, 2026, the Company invites all interested persons to attend its webcast/conference call at 12:00 p.m. (Eastern Time) to discuss its first quarter 2026 financial results.

All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Home page of the Investor Resources section of the Company’s website at www.arescre.com. Please visit the website to test your connection before the webcast. Domestic callers can access the conference call by dialing +1 (800) 343-5172. International callers can access the conference call by dialing +1 (203) 518-9856. Please provide passcode ACREQ126. All callers are asked to dial in 10-15 minutes prior to the call so that name and company information can be collected. For interested parties, an archived replay of the call will be available through June 7, 2026 at 5:00 p.m. (Eastern Time) to domestic callers by dialing +1 (800) 839-4016 and to international callers by dialing +1 (402) 220-7240. An archived replay will also be available through June 7, 2026 on a webcast link located on the Home page of the Investor Resources section of the Company’s website.

ABOUT ARES COMMERCIAL REAL ESTATE CORPORATION

Ares Commercial Real Estate Corporation (the “Company”) is a specialty finance company primarily engaged in directly originating and investing in commercial real estate loans and related investments. Through its national direct origination platform, the Company provides a broad offering of flexible and reliable financing solutions for commercial real estate owners and operators. The Company invests in whole and co-invested senior mortgage loans, as well as subordinate financings, mezzanine debt and preferred equity, with an emphasis on providing value added financing on a variety of properties located in liquid markets across the United States. Ares Commercial Real Estate Corporation elected and qualified to be taxed as a real estate investment trust and is externally managed by a subsidiary of Ares Management Corporation. For more information, please visit www.arescre.com. The contents of such website are not, and should not be deemed to be, incorporated by reference herein.

FORWARD-LOOKING STATEMENTS

Statements included herein or on the webcast / conference call may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements relate to future events or the Company’s future performance or financial condition and include, but are not limited to, statements about potential earnings, the resolution of underperforming loans, increased investment activity, liquidity management, reduction or increase of CECL reserve, reduction or increase of available borrowings, the industry and the loan market. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including global economic trends and economic conditions, including slower growth, changes to fiscal and monetary policy, inflation, labor shortages, changing interest rates, foreign currency exchange volatility and uncertainties caused by tariffs and trade disputes, as well as geopolitical instability, changes in interest rates and credit spreads, management’s estimate of current expected credit losses and current expected credit loss reserve, the amount of commercial mortgage loans requiring refinancing, the demand for commercial real estate loans, the Company’s expected investment capacity and available capital, rates of default or decreased recovery rates on the Company’s target investments, the Company’s business and investment strategy, the Company’s projected operating results, the ability of Ares Commercial Real Estate Management LLC (“ACREM” or the Company’s “Manager”) to locate suitable investments for the Company, monitor, service and administer the Company’s investments and execute its investment strategy, and the risks described from time to time in the Company’s filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risk factors described in Part I, Item 1A. Risk Factors in the Company’s Annual Report on Form 10-K, filed with the SEC on February 10, 2026. Any forward-looking statement, including any contained herein, speaks only as of the time of this press release and Ares Commercial Real Estate Corporation undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call. Projections and forward-looking statements are based on management’s good faith and reasonable assumptions, including the assumptions described herein.

ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data)

As of

March 31, 2026

December 31, 2025

(unaudited)

ASSETS

Cash and cash equivalents

$

86,163

$

29,289

Restricted cash ($1,108 related to consolidated VIEs as of December 31, 2025)

48,169

37,868

Loans held for investment ($138,950 related to consolidated VIEs as of December 31, 2025)

1,629,366

1,528,806

Current expected credit loss reserve

(136,830

)

(125,756

)

Loans held for investment, net of current expected credit loss reserve

1,492,536

1,403,050

Loans held for sale

60,544

—

Real estate owned held for investment, net ($52,634 related to consolidated VIEs as of December 31, 2025)

76,848

130,165

Real estate owned held for sale

53,110

—

Other assets ($76 of interest receivable related to consolidated VIEs as of December 31, 2025)

18,934

17,770

Total assets

$

1,836,304

$

1,618,142

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES

Secured funding agreements

$

1,182,096

$

858,176

Secured term loan

89,538

89,360

Collateralized loan obligation securitization debt (consolidated VIEs)

—

99,921

Due to affiliate

4,085

4,061

Dividends payable

8,442

8,442

Other liabilities ($257 of interest payable related to consolidated VIEs as of December 31, 2025)

59,725

48,614

Total liabilities

1,343,886

1,108,574

Commitments and contingencies

STOCKHOLDERS’ EQUITY

Common stock, par value $0.01 per share, 450,000,000 shares authorized at March 31, 2026 and December 31, 2025 and 55,367,672 and 55,026,453 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively

532

532

Additional paid-in capital

821,724

820,827

Accumulated earnings (deficit)

(329,838

)

(311,791

)

Total stockholders’ equity

492,418

509,568

Total liabilities and stockholders’ equity

$

1,836,304

$

1,618,142

ARES COMMERCIAL REAL ESTATE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(unaudited)

For the Three Months Ended March 31,

2026

2025

Revenue:

Interest income

$

24,906

$

27,480

Interest expense

(17,361

)

(18,189

)

Net interest margin

7,545

9,291

Revenue from real estate owned

5,915

5,657

Total revenue

13,460

14,948

Expenses:

Management and incentive fees to affiliate

2,400

2,567

Professional fees

819

877

General and administrative expenses

1,417

1,720

General and administrative expenses reimbursed to affiliate

787

1,003

Expenses from real estate owned

3,134

4,495

Total expenses

8,557

10,662

(Provision for) reversal of current expected credit losses, net

(11,138

)

5,340

Realized losses on loans

(3,340

)

—

Income (loss) before income taxes

(9,575

)

9,626

Income tax expense (benefit), including excise tax

30

281

Net income (loss) attributable to common stockholders

$

(9,605

)

$

9,345

Earnings (loss) per common share:

Basic earnings (loss) per common share

$

(0.17

)

$

0.17

Diluted earnings (loss) per common share

$

(0.17

)

$

0.17

Weighted average number of common shares outstanding:

Basic weighted average shares of common stock outstanding

55,322,222

54,828,751

Diluted weighted average shares of common stock outstanding

55,322,222

55,694,939

Dividends declared per share of common stock¹

$

0.15

$

0.15

_________________________

(1) There is no assurance dividends will continue at these levels or at all.

SCHEDULE I

Reconciliation of Net Income (Loss) to Non-GAAP Distributable Earnings (Loss)

Distributable Earnings (Loss) is a non-GAAP financial measure that helps the Company evaluate its financial performance excluding the effects of certain transactions and GAAP adjustments that it believes are not necessarily indicative of its current loan origination portfolio and operations. To maintain the Company’s REIT status, the Company is generally required to annually distribute to its stockholders substantially all of its taxable income. The Company believes the disclosure of Distributable Earnings (Loss) provides useful information to investors regarding the Company’s ability to pay dividends, which is one of the principal reasons the Company believes investors invest in the Company. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Distributable Earnings (Loss) is defined as net income (loss) attributable to common stockholders computed in accordance with GAAP, excluding non-cash equity compensation expense, the incentive fees the Company pays to its Manager, depreciation and amortization (to the extent that any of the Company’s target investments are structured as debt and the Company forecloses on any properties underlying such debt), any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period, regardless of whether such items are included in other comprehensive income or loss, or in net income (loss), one-time events pursuant to changes in GAAP and certain non-cash charges after discussions between the Company’s Manager and the Company’s independent directors and after approval by a majority of the Company’s independent directors. Loan balances that are deemed to be uncollectible are written-off as a realized loss and are included in Distributable Earnings (Loss). Distributable Earnings (Loss) is aligned with the calculation of “Core Earnings,” which is defined in the Management Agreement and is used to calculate the incentive fees the Company pays to its Manager.

Reconciliation of net income (loss) attributable to common stockholders, the most directly comparable GAAP financial measure, to Distributable Earnings (Loss) is set forth in the table below for the three and twelve months ended March 31, 2026 ($ in thousands):

For the Three Months Ended March 31, 2026

For the Twelve Months Ended March 31, 2026

Net income (loss) attributable to common stockholders

$

(9,605

)

$

(19,852

)

Stock-based compensation

897

3,752

Incentive fees to affiliate

—

—

Depreciation and amortization of real estate owned

741

6,674

Provision for (reversal of) current expected credit losses, net

11,138

(1,367

)

Distributable Earnings (Loss)

$

3,171

$

(10,793

)

Net income (loss) attributable to common stockholders

$

(0.17

)

$

(0.36

)

Stock-based compensation

0.02

0.07

Incentive fees to affiliate

—

—

Depreciation and amortization of real estate owned

0.01

0.12

Provision for (reversal of) current expected credit losses, net

0.20

(0.02

)

Basic Distributable Earnings (Loss) per common share

$

0.06

$

(0.20

)

Net income (loss) attributable to common stockholders

$

(0.17

)

$

(0.36

)

Stock-based compensation

0.02

0.07

Incentive fees to affiliate

—

—

Depreciation and amortization of real estate owned

0.01

0.12

Provision for (reversal of) current expected credit losses, net

0.20

(0.02

)

Diluted Distributable Earnings (Loss) per common share

$

0.06

$

(0.20

)

_________________________

Numbers presented may not foot due to rounding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507579731/en/

INVESTOR RELATIONS CONTACTS

Ares Commercial Real Estate Corporation

Carl Drake or John Stilmar

(888) 818-5298

[email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: REIT Finance Professional Services Commercial Building & Real Estate Construction & Property

MEDIA:

Logo

Posted on May 7, 2026 6:04 am
Aclarion Announces Addition of First Private Practice Site in Los Angeles into CLARITY Trial to Further Accelerate Enrollment

“Matching the right procedure to the right patient is what moves the field forward”

Lanman Spinal Neurosurgery is a leading spine-focused private practice recognized for its expertise in complex spinal procedures, early adoption of innovative technologies and high surgical volume

The CLARITY randomized clinical trial is designed to demonstrate Nociscan’s ability to improve surgical outcomes for chronic low back pain

BROOMFIELD, Colo., May 07, 2026 (GLOBE NEWSWIRE) — Aclarion, Inc., (“Aclarion” or the “Company”) (Nasdaq: ACON, ACONW), a healthcare technology company that is leveraging biomarkers and proprietary augmented intelligence (AI) algorithms to help physicians identify the location of chronic low back pain, today announced the addition of Lanman Spinal Neurosurgery as a clinical site in its CLARITY (Chronic Low bAck pain Randomized Independent Trial studY) trial.

Based in Beverly Hills, Lanman Spinal Neurosurgery is a leading spine-focused private practice known for its expertise in complex spinal procedures, early adoption of advanced technologies aimed at improving patient outcomes and high surgical volume. The inclusion of a premier private practice site reflects the growing interest in integrating Nociscan into real-world clinical workflows beyond academic medical centers.

“I have spent more than 25 years practicing spinal surgery in Beverly Hills, and my perspective is shaped not only by that experience, but also by having undergone multiple spine surgeries myself,” said Todd Lanman, MD, Neurosurgeon and Founder of Lanman Spinal Neurosurgery. “We have made significant progress in moving beyond one-size-fits-all solutions for low back pain, driven by advances in technology and technique. Nociscan introduces a new layer of clarity by leveraging MR Spectroscopy to identify pain-generating discs in ways that standard MRI cannot. The CLARITY trial is particularly important because it is designed to evaluate how this technology can enhance clinical decision-making by more precisely identifying pain-generating discs. This ability to match the right procedure to the right patient is what moves the field forward.”

The addition of Lanman Spinal Neurosurgery marks an important milestone in the continued expansion of the 300-patient CLARITY trial, a prospective, randomized, multi-center study evaluating Nociscan in patients undergoing surgical treatment (Fusion / TDR) for discogenic low back pain. The primary endpoint is change in back pain as measured on a 100mm VAS Back at 12 months compared to baseline, with several secondary endpoints collected. The company anticipates having an initial internal data readout and an expected public disclosure of early interim results in Q4 2026.

“Private practice spine surgeons play a critical role in treating the majority of patients suffering from chronic low back pain, and the inclusion of Lanman Spinal Neurosurgery reflects the growing demand for more precise, data-driven tools in everyday clinical practice,” said Ryan Bond, Chief Strategy Officer of Aclarion. “Dr. Lanman is widely recognized for his commitment to innovation and patient-centered care, and we are excited to partner with his team as we continue to expand CLARITY and generate the high-quality evidence needed to advance Nociscan.”

Chronic low back pain is a global healthcare problem with approximately 266 million people worldwide suffering from degenerative spine disease and low back pain. Aclarion’s Nociscan solution is the first evidence-supported SaaS platform to noninvasively help physicians distinguish between painful and nonpainful discs in the lumbar spine. Nociscan objectively quantifies chemical biomarkers demonstrated to be associated with disc pain. When used with other diagnostic tools, Nociscan provides critical insights into the location of a patient’s low back pain and demonstrates a 97% surgical success rate when all Nociscan-positive discs are treated.

For more information about CLARITY, please visit: CLARITY Trial

To find a Nociscan center, view our site map here.

For more information on Nociscan, please email: [email protected]

All organizations cited and/or quotes from individuals not part of Aclarion have reviewed and approved the contents herein.

About Aclarion, Inc.

Aclarion is a healthcare technology company that leverages Magnetic Resonance Spectroscopy (“MRS”), proprietary signal processing techniques, biomarkers, and augmented intelligence algorithms to optimize clinical treatments. The Company is first addressing the chronic low back pain market with Nociscan, the first, evidence-supported, SaaS platform to noninvasively help physicians distinguish between painful and nonpainful discs in the lumbar spine. Through a cloud connection, Nociscan receives magnetic resonance spectroscopy (MRS) data from an MRI machine for each lumbar disc being evaluated. In the cloud, proprietary signal processing techniques extract and quantify chemical biomarkers demonstrated to be associated with disc pain. Biomarker data is entered into proprietary algorithms to indicate if a disc may be a source of pain. When used with other diagnostic tools, Nociscan provides critical insights into the location of a patient’s low back pain, giving physicians clarity to optimize treatment strategies. For more information, please visit www.aclarion.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 about the Company’s current expectations about future results, performance, prospects and opportunities. Statements that are not historical facts, such as “anticipates,” “believes” and “expects” or similar expressions, are forward-looking statements. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the Company’s current plans and expectations, as well as future results of operations and financial condition. Forward-looking statements in this release include, among others, statements regarding the enrollment of patients in our ongoing clinical trial, the growing interest in integrating Nociscan into real-world clinical workflows, having an initial internal data readout and the expected public disclosure of early interim results in Q4 2026 and, the continued expansion of the CLARITY trial to generate the high-quality evidence needed to advance Nociscan. These and other risks and uncertainties are discussed more fully in our filings with the Securities and Exchange Commission. Readers are encouraged to review the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as well as other disclosures contained in the Prospectus and subsequent filings made with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contacts:

Kirin M. Smith
PCG Advisory, Inc.
[email protected]

Media Contacts:

Jennie Kim
SPRIG Consulting
[email protected]

Posted on May 7, 2026 6:04 am
Genesis Energy, L.P. Reports First Quarter 2026 Results

Genesis Energy, L.P. Reports First Quarter 2026 Results

HOUSTON–(BUSINESS WIRE)–
Genesis Energy, L.P. (NYSE: GEL) today announced its first quarter results.

We generated the following financial results for the first quarter of 2026:

Net Income Attributable to Genesis Energy, L.P. of $6.8 million for the first quarter of 2026 compared to Net Loss Attributable to Genesis Energy, L.P. of $469.1 million for the same period in 2025.

Cash Flows from Operating Activities of $81.7 million for the first quarter of 2026 compared to $24.8 million for the same period in 2025.

We declared cash distributions on our preferred units of $0.9473 for each preferred unit, which equates to a cash distribution of approximately $13.6 million and is reflected as a reduction to Available Cash before Reserves to common unitholders.

Available Cash before Reserves to common unitholders of $43.8 million for the first quarter of 2026, which provided 1.99X coverage for the quarterly distribution of $0.18 per common unit attributable to the first quarter.

Total Segment Margin of $156.4 million for the first quarter of 2026.

Adjusted EBITDA of $140.9 million for the first quarter of 2026.

Adjusted Consolidated EBITDA of $587.0 million for the trailing twelve months ended March 31, 2026 and a bank leverage ratio of 5.38X, both calculated in accordance with our senior secured credit agreement and discussed further in this release.

Grant Sims, CEO of Genesis Energy, said, “Our first quarter results for 2026 in the aggregate came in slightly below our internal expectations. Most of our businesses performed in line with our expectations, with the exception of our offshore pipeline transportation segment, despite being up 40% year over year. Consistent with what we communicated in February, we always thought 2026 was going to be a year shaped by the timing of producer activity and our heavier marine dry-docking calendar, and the first quarter reflects that dynamic rather than any substantive change in the underlying trajectory of our businesses. We continue to see encouraging progress across our businesses and remain constructive on the outlook for the remainder of the year.

In that regard, the broader geopolitical environment remains dynamic, and if traditional global hydrocarbon flows take longer to normalize, we believe these conditions could create incremental opportunities for Genesis, certainly in the second quarter and perhaps over the balance of the year. Taken together, we believe we remain on track to deliver full-year 2026 Adjusted EBITDA⁽¹⁾ at or near the midpoint of the range we discussed on our year-end call, which contemplated plus or minus 15% to 20% growth over our normalized 2025 baseline of approximately $500 – $510 million.

Turning to our offshore pipeline transportation segment. We expected, and discussed in our year-end call, that, sequentially, we could be down in that segment because of multiple turnarounds scheduled at a few of our customers’ key offshore hubs connected to our offshore infrastructure. One of these turnarounds indeed occurred in the first quarter, and if anything, lasted slightly longer than expected. Also, during the first quarter, we observed some decline in production volumes from the Shenandoah floating production unit (“FPU”), one of the new facilities that started production last year. Such declines are not uncommon, particularly given the unexpectedly high initial production rates exhibited by the Shenandoah wells in the fourth quarter. Based on our updated outlook for Shenandoah throughput over the balance of the year, we now expect approximately $12 million to $15 million less Segment Margin contribution from Shenandoah in 2026 relative to what was contemplated in our original guidance.

Before moving on, let me make a few comments specific to Shenandoah. First, as mentioned above, we do not believe these lower production rates that we now anticipate will keep us from getting to, or near, the midpoint of our previous Adjusted EBITDA guidance for 2026. Second, and I plan on going into quite a bit more detail in our prepared remarks for the earnings call, we are not necessarily concerned by what we are seeing. If anything, based upon analysis shared with us by the operator, the calculated total oil in place and, importantly, the anticipated recovery percentage of said total oil are both going up, not down, relative to pre-drill expectations over the 20–30-year productive life of the Shenandoah, Monument and Shenandoah South fields.

In the near term, the operator of the Monument project and the Shenandoah South project, which are both sanctioned sub-sea tie-back developments to the Shenandoah FPU, currently has a rig on location to drill, complete and turn to production two wells in the Monument field, with one scheduled by the end of this year and the second sometime early in 2027. Once completed, they plan to use the rig to drill and complete two additional wells at Shenandoah over the remainder of 2027. In addition, a sub-sea pumping system is expected to be installed in early 2028 to further maximize total production from the existing and future Shenandoah wells. At the same time, the Shenandoah South partners are underway with the execution of that project and expect to bring the first producing well from that field across the Shenandoah FPU in the first half of 2028.

Importantly, the Shenandoah FPU operator is currently working to expand the total crude oil handling capability to 140kbd to ensure adequate capacity for all these currently drilling and future wells. While perhaps a little less is expected in 2026 and there is inherent risk in subsurface analysis, we are quite excited about the overall prospects in and around the Shenandoah FPU that will flow exclusively through our 100% owned SYNC lateral for further transportation to shore through our 64% owned CHOPS pipeline for many years ahead.

Following on with what else is going on in our offshore pipeline transportation segment, during the first quarter, the fourth well at Salamanca was successfully brought on-line ahead of schedule, contributing to an increase in aggregate production volumes from Salamanca to slightly more than 40kbd, with a fifth well expected to be on production by the end of this year. In addition, a new well at Argos commenced production late in the first quarter, further reinforcing our steady base of volumes. As we look at the balance of the year, we believe the outlook for offshore volumes remains constructive. At current commodity prices, producers are highly incentivized to maximize throughput and cash flow generation, which we expect will translate into a continued focus on operational reliability and uptime optimization. Importantly, the broader cadence of additional activity remains on track, with multiple incremental wells anticipated to come on-line over the next several quarters, providing additional visibility into strong volumes over not only the remainder of the year but for many years to come.

Turning quickly to our other segments.

We continued to see balanced, if not slightly improving, market conditions in our marine transportation segment. Upon completing the scheduled dry-dockings of our two remaining blue water vessels in the coming months, we will return to full capacity in the third quarter and be in a position to deliver increasing results in the back half of the year simply by having all of our offshore equipment back in service and more total fleet days available to operate.

Our onshore transportation and services segment once again delivered results in line with, if not exceeding, our expectations. During the quarter, throughput volumes remained strong across both our Texas and Raceland onshore terminals and pipeline systems, supported by incremental offshore production continuing to move onshore. We also experienced steady demand at our Baton Rouge terminal, with strong volumes of intermediate products moving through the facility. Looking ahead, our focus remains on providing offshore producers, as well as our broader upstream and downstream customer base, with reliable and efficient access to Gulf Coast refineries and other key downstream markets to ultimately provide them with flow assurance and market optionality.

Our legacy sulfur services business was impacted by operational challenges at our largest and lowest-cost host refinery, which resulted in lower NaHS production during the quarter. As this primary host refinery returns to more consistent operating levels, and to the extent incremental volumes of Venezuelan and/or other heavy sour crudes are processed at our Gulf Coast host refineries, we believe we remain well positioned to benefit from these improving dynamics, with the potential for a recovery in both production volumes and Segment Margin contribution over the balance of the year. We continue to face market challenges from sulfur related competing product imports from China into South America and will continue to monitor this situation, especially given recent increases in the price of sulfur.

Finally, I will take the opportunity to remind you that we took several key steps during the quarter to further strengthen our balance sheet, substantially increase our financial flexibility and ultimately reduce the ongoing financing costs of our business. In February, we utilized some excess liquidity to repurchase $25 million of our high-cost Series A corporate preferred securities. Then, in early March, we completed a $750 million issuance of 6.75% senior unsecured notes due 2034. We used the net proceeds to fully tender and redeem the $679 million of 7.75% senior unsecured notes due 2028 which extended our debt maturity profile, eliminated any near-term re-financing risk and reduced our cost of capital. Additionally, in March, we successfully amended and extended our senior secured revolving credit facility, increasing the borrowing capacity from $800 million to $900 million and extending the maturity date to March of 2031. The amendment also provided additional covenant flexibility and expanded our permitted investment baskets, enabling us to maintain a disciplined, yet opportunistic approach to our future capital allocation priorities. We subsequently utilized the remaining proceeds from our senior unsecured notes offering, along with free cash flow we generated during the quarter and our enhanced liquidity, to opportunistically repurchase an additional $110 million of our high-cost Series A corporate preferred securities, reducing the outstanding face value to approximately $394 million at the end of the first quarter. The combination of all these efforts is expected to lower our annual financing costs by approximately $12 million and advance our objective of reducing our overall cost of capital while continuing to simplify and strengthen our capital structure.

Looking ahead, our capital allocation priorities remain unchanged. We will continue to focus on further strengthening our balance sheet and lowering our cost of capital by targeting the higher-cost components of our capital structure. We intend to utilize excess free cash flow and liquidity toward the continued redemption of our high-cost Series A corporate preferred securities, while also remaining opportunistic in re-financing our higher-coupon senior unsecured notes as market conditions allow. Over time, these actions are expected to further reduce the on-going cost to finance our business and, when combined with steady and improving performance of our underlying operations, should support a continued move toward our long-term bank-calculated target leverage ratio of approximately 4.0x. This progress should also position us to thoughtfully and prudently grow distributions to our common unitholders over time, while preserving the financial flexibility to pursue attractive organic and inorganic opportunities as they emerge. At the same time, we remain firmly committed to disciplined execution across our business, supporting stable, long-term value creation for all stakeholders in our capital structure.

In closing, the management team and board of directors remain steadfast in our commitment to building long-term value for everyone in the capital structure, and we believe the decisions we are making reflect this commitment and our confidence in Genesis moving forward. I would once again like to thank our entire workforce for their continued dedication to safe, reliable, and responsible operations. I’m proud to have the opportunity to work alongside each and every one of you.”

(1) Adjusted EBITDA is a non-GAAP financial measure. We are unable to provide a reconciliation of the forward-looking Adjusted EBITDA projections contained in this press release to its most directly comparable GAAP financial measure because the information necessary for quantitative reconciliations of Adjusted EBITDA to its most directly comparable GAAP financial measure is not available to us without unreasonable efforts. The probable significance of providing this forward-looking Adjusted EBITDA measure without a directly comparable GAAP financial measure is that such non-GAAP financial measure may be materially different from the corresponding GAAP financial measure.

Financial Results

Segment Margin

Segment Margin

Variances between the first quarter of 2026 (the “2026 Quarter”) and the first quarter of 2025 (the “2025 Quarter”) in our reportable segments are explained below.

Segment Margin results for the 2026 Quarter and 2025 Quarter were as follows:

Three Months Ended

March 31,

2026

2025

(in thousands)

Offshore pipeline transportation

$

107,088

$

76,548

Marine transportation

27,917

30,021

Onshore transportation and services

21,435

14,826

Total Segment Margin

$

156,440

$

121,395

Offshore pipeline transportation Segment Margin for the 2026 Quarter increased $30.5 million, or 40%, from the 2025 Quarter primarily due to: (i) production volumes associated with the deepwater Shenandoah FPU, which ties into our 100% owned SYNC Pipeline for further transportation downstream to our 64% owned CHOPS Pipeline, that began producing in July 2025; and (ii) production volumes from the Salamanca FPU, which ties into our existing 100% owned SEKCO Pipeline for further transportation downstream on our 64% owned Poseidon Pipeline, that began producing in September 2025. In addition, the 2025 Quarter was impacted by producer downtime from several wells being shut in due to certain sub-sea operational and technical challenges, which were mostly resolved by our producer customers as we exited 2025. These increases to the 2026 Quarter were partially offset by a scheduled turnaround at a key third party production platform, which was completed in early April.

Marine transportation Segment Margin for the 2026 Quarter decreased $2.1 million, or 7%, from the 2025 Quarter primarily due to slightly lower day rates in our inland barge business during the 2026 Quarter and the impacts to our offshore barge business as a result of planned dry-dockings in our offshore fleet during the 2026 Quarter. During the third quarter of 2025, we experienced a decline in day rates due to a decrease in Midwest refinery demand for black oil equipment as a result of changing crude slates. Day rates have recovered at a slower pace than anticipated, and rates in the 2026 Quarter have not reached the levels we saw in the 2025 Quarter. In our offshore barge business, revenues for the 2026 Quarter were impacted by several required and planned regulatory dry-dockings, which included the dry-docking of one of our two largest vessels that is expected to be completed in the second quarter of 2026. These decreases in Segment Margin were partially offset by an increase in adjusted utilization from our inland and offshore fleets and a contractual rate increase on our M/T American Phoenix during the 2026 Quarter compared to the 2025 Quarter.

Onshore transportation and services Segment Margin for the 2026 Quarter increased $6.6 million, or 45%, from the 2025 Quarter primarily due to an increase in volumes transported on our onshore crude oil pipeline systems and increased activity and volumes in our crude oil marketing business. We experienced an increase in volumes on our Texas pipeline system which is a key destination point for various grades of crude oil produced in the Gulf of America including those transported on our 64% owned CHOPS Pipeline, and also benefited from an increase in refined product volumes at our Baton Rouge terminal. In our sulfur services business, we experienced a decrease in NaHS sales volumes primarily as a result of operational challenges at our largest and lowest-cost host refinery, which was partially offset by an increase in index-based NaHS sales prices.

Other Components of Net Income (Loss)

We reported Net Income from Continuing Operations of $19.1 million in the 2026 Quarter compared to Net Loss from Continuing Operations of $36.6 million in the 2025 Quarter.

Net Income from Continuing Operations in the 2026 Quarter was impacted by an increase in operating income from our reportable segments, primarily from our offshore pipeline transportation segment as discussed above, a decrease in general and administrative expenses of $23.1 million, and a decrease in interest expense, net of $2.1 million. This increase was partially offset by an increase in other expense of $2.7 million and an increase in depreciation and amortization of $2.7 million during the 2026 Quarter.

We reported Net Loss from Discontinued Operations, net of tax of $423.7 million during the 2025 Quarter associated with the Alkali Business that was sold on February 28, 2025.

Earnings Conference Call

We will broadcast our Earnings Conference Call on Thursday, May 7, 2026, at 9:00 a.m. Central time (10:00 a.m. Eastern time). This call can be accessed at www.genesisenergy.com. Choose the Investor Relations button. For those unable to attend the live broadcast, a replay will be available beginning approximately one hour after the event and remain available on our website for 30 days. There is no charge to access the event.

Genesis Energy, L.P. is a diversified midstream energy master limited partnership headquartered in Houston, Texas. Genesis’ operations include offshore pipeline transportation, marine transportation and onshore transportation and services. Genesis’ operations are primarily located in the Gulf of America and in the Gulf Coast region of the United States.

GENESIS ENERGY, L.P.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – UNAUDITED

(in thousands, except unit amounts)

Three Months Ended

March 31,

2026

2025

REVENUES

$

446,555

$

398,311

COSTS AND EXPENSES:

Costs of sales and operating costs

293,509

279,525

General and administrative

17,524

40,642

Depreciation and amortization

58,909

56,171

OPERATING INCOME

76,613

21,973

Equity in earnings of equity investees

14,162

12,492

Interest expense, net

(67,978

)

(70,038

)

Other expense

(3,540

)

(844

)

Income (loss) from continuing operations before income taxes

19,257

(36,417

)

Income tax expense

(112

)

(144

)

NET INCOME (LOSS) FROM CONTINUING OPERATIONS

19,145

(36,561

)

Income from discontinued operations, net of tax

—

8,448

Loss from disposal of discontinued operations

—

(432,193

)

NET LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX

—

(423,745

)

NET INCOME (LOSS)

19,145

(460,306

)

Net income attributable to noncontrolling interests

(12,345

)

(8,769

)

NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P.

$

6,800

$

(469,075

)

Less: Accumulated distributions and returns attributable to Class A Convertible Preferred Units

(13,583

)

(28,402

)

NET LOSS ATTRIBUTABLE TO COMMON UNITHOLDERS

$

(6,783

)

$

(497,477

)

NET LOSS PER COMMON UNIT:

Net loss attributable to common unitholders per common unit from continuing operations – Basic and Diluted

$

(0.06

)

$

(0.60

)

Net loss per common unit from discontinued operations – Basic and Diluted

—

(3.46

)

Net loss per common unit – Basic and Diluted

$

(0.06

)

$

(4.06

)

WEIGHTED AVERAGE OUTSTANDING COMMON UNITS:

Basic and Diluted

122,464,318

122,464,318

GENESIS ENERGY, L.P.

OPERATING DATA – UNAUDITED

Three Months Ended

March 31,

2026

2025

Offshore Pipeline Transportation Segment

Crude oil pipelines (average barrels/day):

CHOPS⁽¹⁾

425,247

312,976

Poseidon⁽¹⁾

269,827

244,323

Odyssey⁽¹⁾

65,750

63,738

GOPL

1,402

1,682

Offshore crude oil pipelines total

762,226

622,719

Natural gas transportation volumes (MMBtus/day)⁽¹⁾

391,922

401,764

Marine Transportation Segment

Inland Barge Utilization Percentage⁽²⁾

95.9

%

93.6

%

Offshore Barge Utilization Percentage⁽²⁾

99.1

%

96.2

%

Onshore Transportation and Services Segment

Crude oil pipelines (average barrels/day):

Texas⁽³⁾

119,998

61,924

Jay

8,683

4,328

Mississippi

1,016

1,189

Louisiana⁽⁴⁾

60,548

38,173

Onshore crude oil pipelines total

190,245

105,614

Crude oil product sales (average barrels/day)

22,158

19,968

Rail unload volumes (average barrels/day)

20,214

20,492

NaHS volumes (Dry short tons “DST” sold)

19,783

25,873

NaOH (caustic soda) volumes (DST sold)

8,609

8,545

(1)
As of March 31, 2026 and 2025, we owned 64% of CHOPS, 64% of Poseidon and 29% of Odyssey, as well as equity interests in various other entities. Volumes are presented above on a 100% basis for all periods.

(2)
Utilization rates are based on a 365-day year, as adjusted for planned downtime and dry-dockings.

(3)
Our Texas pipeline and infrastructure is a destination point for many pipeline systems in the Gulf of America, including the CHOPS Pipeline.

(4)
Total daily volumes for the 2026 Quarter and 2025 Quarter include 32,876 and 18,609 Bbls/day, respectively, of intermediate refined petroleum products and 25,857 and 19,564 Bbls/day, respectively, of crude oil associated with our Port of Baton Rouge Terminal pipelines.

GENESIS ENERGY, L.P.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except unit amounts)

March 31, 2026

December 31, 2025

(unaudited)

ASSETS

Cash and cash equivalents

$

4,210

$

6,437

Accounts receivable – trade, net

628,603

608,221

Inventories

39,224

55,366

Other

30,782

17,442

Total current assets

702,819

687,466

Fixed assets, net of accumulated depreciation

3,431,322

3,465,323

Equity investees

215,610

218,631

Intangible assets, net of amortization

73,323

75,606

Goodwill

301,959

301,959

Right of use assets, net

56,839

57,670

Other assets, net of amortization

54,842

54,048

Total assets

$

4,836,714

$

4,860,703

LIABILITIES AND CAPITAL

Accounts payable – trade

$

508,348

$

490,712

Accrued liabilities

212,355

208,980

Total current liabilities

720,703

699,692

Senior secured credit facility

74,100

6,400

Senior unsecured notes, net of debt issuance costs and discount

3,102,076

3,040,415

Deferred tax liabilities

17,217

17,405

Other long-term liabilities

387,112

388,707

Total liabilities

4,301,208

4,152,619

Mezzanine capital:

Class A Convertible Preferred Units

411,547

552,523

Partners’ capital (deficit):

Common unitholders

(343,173

)

(314,346

)

Noncontrolling interests

467,132

469,907

Total partners’ capital

123,959

155,561

Total liabilities, mezzanine capital and partners’ capital

$

4,836,714

$

4,860,703

Common Units Data:

Total common units outstanding

122,464,318

122,464,318

GENESIS ENERGY, L.P.

RECONCILIATION OF INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES TO TOTAL SEGMENT MARGIN – UNAUDITED

(in thousands)

Three Months Ended

March 31,

2026

2025

Income (loss) from continuing operations before income taxes

$

19,257

$

(36,417

)

Net income attributable to noncontrolling interests

(12,345

)

(8,769

)

Corporate general and administrative expenses

17,238

41,676

Depreciation, amortization and accretion

61,148

59,011

Interest expense, net

67,978

70,038

Adjustment to include distributable cash generated by equity investees not included in income and exclude equity in investees net income⁽¹⁾

5,521

6,092

Unrealized losses (gains) on derivative transactions excluding fair value hedges, net of changes in inventory value

815

(71

)

Other non-cash items

(4,618

)

(2,722

)

Loss on extinguishment of debt

3,540

844

Differences in timing of cash receipts for certain contractual arrangements⁽²⁾

(2,094

)

(8,287

)

Total Segment Margin⁽³⁾

$

156,440

$

121,395

(1)
Includes distributions attributable to the quarter and received during or promptly following such quarter.

(2)
Includes the difference in timing of cash receipts from customers during the period and the revenue we recognize in accordance with GAAP on our related contracts.

(3)
See definition of Segment Margin later in this press release.

GENESIS ENERGY, L.P.

RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO GENESIS ENERGY, L.P. TO ADJUSTED EBITDA AND AVAILABLE CASH BEFORE RESERVES – UNAUDITED

(in thousands)

Three Months Ended

March 31,

2026

2025

Net income (loss) attributable to Genesis Energy, L.P.

$

6,800

$

(469,075

)

Interest expense, net

67,978

70,038

Income tax expense

112

144

Depreciation, amortization and accretion

61,148

59,011

Loss from disposal of discontinued operations

—

432,193

Interest expense, net and income tax expense from discontinued operations

—

4,195

Other non-cash items from discontinued operations, net⁽¹⁾

—

15,584

EBITDA

136,038

112,090

Plus (minus) Select Items, net⁽²⁾

4,824

19,589

Adjusted EBITDA⁽³⁾

140,862

131,679

Maintenance capital utilized⁽⁴⁾

(15,250

)

(16,900

)

Interest expense, net

(67,978

)

(70,038

)

Cash tax expense

(300

)

(257

)

Distributions to preferred unitholders⁽⁵⁾

(13,565

)

(19,942

)

Interest expense, net and income tax expense from discontinued operations

—

(4,195

)

Available Cash before Reserves⁽⁶⁾

$

43,769

$

20,347

(1)
Includes non-cash items such as depreciation, depletion and amortization and unrealized gains or losses on derivative transactions, amongst other non-cash items attributable to discontinued operations for the 2025 Quarter.

(2)
Refer to additional detail of Select Items later in this press release.

(3)
See definition of Adjusted EBITDA later in this press release.

(4)
Maintenance capital expenditures for the 2026 Quarter and 2025 Quarter were $16.7 million and $22.6 million, respectively, which excludes maintenance capital expenditures of $4.6 million for the 2025 Quarter associated with our discontinued operations. Our continuing maintenance capital expenditures are principally associated with our marine transportation business.

(5)
Distributions attributable to preferred unitholders associated with the 2026 Quarter include $2.5 million paid during the 2026 Quarter and $11.1 million that is payable on May 15, 2026 to unitholders of record at close of business on April 30, 2026.

(6)
Represents the Available Cash before Reserves to common unitholders.

GENESIS ENERGY, L.P.

RECONCILIATION OF NET CASH FLOWS FROM OPERATING ACTIVITIES TO ADJUSTED EBITDA – UNAUDITED

(in thousands)

Three Months Ended

March 31,

2026

2025

Cash Flows from Operating Activities

$

81,738

$

24,805

Adjustments to reconcile net cash flows from operating activities to Adjusted EBITDA:

Interest expense, net⁽¹⁾

67,978

74,217

Amortization and write-off of debt issuance costs, premium and discount

(5,779

)

(3,857

)

Effects from equity method investees not included in operating cash flows

5,645

6,152

Net effect of changes in components of operating assets and liabilities

6,188

32,368

Non-cash effect of long-term incentive compensation plans

137

(2,485

)

Expenses related to business development activities and growth projects

3,122

25,208

Differences in timing of cash receipts for certain contractual arrangements⁽²⁾

(2,094

)

(8,287

)

Other items, net⁽³⁾

(16,073

)

(16,442

)

Adjusted EBITDA⁽⁴⁾

$

140,862

$

131,679

(1)
Includes interest expense, net of $70.0 million from continuing operations and $4.2 million from discontinued operations for the 2025 Quarter.

(2)
Includes the difference in timing of cash receipts from or billings to customers during the period and the revenue we recognize in accordance with GAAP on our related contracts. For purposes of our non-GAAP measures, we add those amounts in the period of payment and deduct them in the period in which GAAP recognizes them.

(3)
Includes adjustments associated with the noncontrolling interest effects of our non-100% owned consolidated subsidiaries as our Adjusted EBITDA measure is reported net to our ownership interests, amongst other items.

(4)
See definition of Adjusted EBITDA later in this press release.

GENESIS ENERGY, L.P.

ADJUSTED DEBT-TO-ADJUSTED CONSOLIDATED EBITDA RATIO – UNAUDITED

(in thousands)

March 31, 2026

Senior secured credit facility

$ 74,100

Senior unsecured notes, net of debt issuance costs and discount

3,102,076

Less: Outstanding inventory financing sublimit borrowings

(17,900

)

Less: Cash and cash equivalents

(3,046

)

Adjusted Debt⁽¹⁾

$ 3,155,230

Pro Forma LTM

March 31, 2026

Consolidated EBITDA (per our senior secured credit facility)

$ 553,507

Consolidated EBITDA adjustments⁽²⁾

33,473

Adjusted Consolidated EBITDA (per our senior secured credit facility)⁽³⁾

$ 586,980

Adjusted Debt-to-Adjusted Consolidated EBITDA

5.38X

(1)

We define Adjusted Debt as the amounts outstanding under our senior secured credit facility and senior unsecured notes (including any unamortized discounts or issuance costs) less the amount outstanding under our inventory financing sublimit, and less cash and cash equivalents on hand at the end of the period from our restricted subsidiaries.

(2)

This amount reflects adjustments we are permitted to make under our senior secured credit facility for purposes of calculating compliance with our leverage ratio. It includes a pro rata portion of projected future annual EBITDA associated with contractual minimum cash commitments we expect to receive from material organic growth projects that are in-service. These adjustments may not be indicative of future results.

(3)

Adjusted Consolidated EBITDA for the four-quarter period ending with the most recent quarter, as calculated under our senior secured credit facility.

This press release includes forward-looking statements as defined under federal law. Although we believe that our expectations are based upon reasonable assumptions, we can give no assurance that our goals will be achieved. Actual results may vary materially. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future, including, but not limited to statements relating to future financial and operating results, liquidity and capital expenditures, distributions to our unitholders or other capital allocation plans or expectations, the anticipated benefits of the Shenandoah and Salamanca developments and other production facilities, production and other rates or volumes or demand for our services, the expected performance of our business segments and other projects, the impact of proposed or increased tariffs or fluctuations in commodity prices on our business, and our strategy and plans, are forward-looking statements and historical performance is not necessarily indicative of future performance. Those forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside our control, that could cause results to differ materially from those expected by management. Such risks and uncertainties include, but are not limited to, weather, political, economic and market conditions, including a decline in the price and market demand for products (which may be affected by the actions of OPEC and other oil exporting nations), impacts due to inflation, increased tariffs and proposed tariffs, taxes, duties and similar matters affecting international trade, a reduction in demand for our services resulting in impairments of our assets, the spread of disease, the impact of natural disasters, international military conflicts (such as the war in Ukraine and Iran, the Israel and Hamas war and broader geopolitical tensions in the Middle East and Eastern Europe), the result of any economic recession or depression that has occurred or may occur in the future, anticipated benefits of our projects or those of our counterparties, including producers, the timing and success of business development efforts and other uncertainties. Those and other applicable uncertainties, factors and risks that may affect those forward-looking statements are described more fully in our Annual Report on Form 10-K for the year ended December 31, 2025 filed with the Securities and Exchange Commission and other filings, including our Current Reports on Form 8-K and Quarterly Reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statement.

NON-GAAP MEASURES

This press release and the accompanying schedules include non-generally accepted accounting principle (non-GAAP) financial measures of Adjusted EBITDA and total Available Cash before Reserves. In this press release, we also present total Segment Margin as if it were a non-GAAP measure. Our non-GAAP measures may not be comparable to similarly titled measures of other companies because such measures may include or exclude other specified items. The accompanying schedules provide reconciliations of these non-GAAP financial measures to their most directly comparable financial measures calculated in accordance with generally accepted accounting principles in the United States of America (GAAP). Our non-GAAP financial measures should not be considered (i) as alternatives to GAAP measures of liquidity or financial performance or (ii) as being singularly important in any particular context; they should be considered in a broad context with other quantitative and qualitative information. Our Available Cash before Reserves, Adjusted EBITDA and total Segment Margin measures are just three of the relevant data points considered from time to time.

When evaluating our performance and making decisions regarding our future direction and actions (including making discretionary payments, such as quarterly distributions) our board of directors and management team have access to a wide range of historical and forecasted qualitative and quantitative information, such as our financial statements; operational information; various non-GAAP measures; internal forecasts; credit metrics; analyst opinions; performance; liquidity and similar measures; income (loss); cash flow expectations for us; and certain information regarding some of our peers. Additionally, our board of directors and management team analyze, and place different weight on, various factors from time to time. We believe that investors benefit from having access to the same financial measures being utilized by management, lenders, analysts and other market participants. We attempt to provide adequate information to allow each individual investor and other external user to reach her/his own conclusions regarding our actions without providing so much information as to overwhelm or confuse such investor or other external user.

AVAILABLE CASH BEFORE RESERVES

Purposes, Uses and Definition

Available Cash before Reserves, often referred to by others as distributable cash flow, is a quantitative standard used throughout the investment community with respect to publicly traded partnerships and is commonly used as a supplemental financial measure by management and by external users of financial statements such as investors, commercial banks, research analysts and rating agencies, to aid in assessing, among other things:

(1)

the financial performance of our assets;

(2)

our operating performance;

(3)

the viability of potential projects, including our cash and overall return on alternative capital investments as compared to those of other companies in the midstream energy industry;

(4)

the ability of our assets to generate cash sufficient to satisfy certain non-discretionary cash requirements, including interest payments and certain maintenance capital requirements; and

(5)

our ability to make certain discretionary payments, such as distributions on our preferred and common units, growth capital expenditures, certain maintenance capital expenditures and early payments of indebtedness.

We define Available Cash before Reserves (“Available Cash before Reserves”) as Adjusted EBITDA adjusted for certain items, the most significant of which in the relevant reporting periods have been the sum of maintenance capital utilized, interest expense, net, cash tax expense and cash distributions attributable to our Class A Convertible Preferred unitholders.

Disclosure Format Relating to Maintenance Capital

We use a modified format relating to maintenance capital requirements because our maintenance capital expenditures vary materially in nature (discretionary vs. non-discretionary), timing and amount from time to time. We believe that, without such modified disclosure, such changes in our maintenance capital expenditures could be confusing and potentially misleading to users of our financial information, particularly in the context of the nature and purposes of our Available Cash before Reserves measure. Our modified disclosure format provides those users with information in the form of our maintenance capital utilized measure (which we deduct to arrive at Available Cash before Reserves). Our maintenance capital utilized measure constitutes a proxy for non-discretionary maintenance capital expenditures and it takes into consideration the relationship among maintenance capital expenditures, operating expenses and depreciation from period to period.

Maintenance Capital Requirements

Maintenance Capital Expenditures

Maintenance capital expenditures are capitalized costs that are necessary to maintain the service capability of our existing assets, including the replacement of any system component or equipment which is worn out or obsolete. Maintenance capital expenditures can be discretionary or non-discretionary, depending on the facts and circumstances.

Prior to 2014, substantially all of our maintenance capital expenditures were (a) related to our pipeline assets and similar infrastructure, (b) non-discretionary in nature and (c) immaterial in amount as compared to our Available Cash before Reserves measure. Those historical expenditures were non-discretionary (or mandatory) in nature because we had very little (if any) discretion as to whether or when we incurred them. We had to incur them in order to continue to operate the related pipelines in a safe and reliable manner and consistently with past practices. If we had not made those expenditures, we would not have been able to continue to operate all or portions of those pipelines, which would not have been economically feasible. An example of a non-discretionary (or mandatory) maintenance capital expenditure would be replacing a segment of an old pipeline because one can no longer operate that pipeline safely, legally and/or economically in the absence of such replacement.

Beginning with 2014, we believe a substantial amount of our maintenance capital expenditures from time to time have been and will continue to be (a) related to our assets other than pipelines, such as our marine vessels, trucks and similar assets, (b) discretionary in nature and (c) potentially material in amount as compared to our Available Cash before Reserves measure. Those expenditures will be discretionary (or non-mandatory) in nature because we will have significant discretion as to whether or when we incur them. We will not be forced to incur them in order to continue to operate the related assets in a safe and reliable manner. If we chose not to make those expenditures, we would be able to continue to operate those assets economically, although in lieu of maintenance capital expenditures, we would incur increased operating expenses, including maintenance expenses. An example of a discretionary (or non-mandatory) maintenance capital expenditure would be replacing an older marine vessel with a new marine vessel with substantially similar specifications, even though one could continue to economically operate the older vessel in spite of its increasing maintenance and other operating expenses.

In summary, as we continue to expand certain non-pipeline portions of our business, we are experiencing changes in the nature (discretionary vs. non-discretionary), timing and amount of our maintenance capital expenditures that merit a more detailed review and analysis than was required historically. Management’s increasing ability to determine if and when to incur certain maintenance capital expenditures is relevant to the manner in which we analyze aspects of our business relating to discretionary and non-discretionary expenditures. We believe it would be inappropriate to derive our Available Cash before Reserves measure by deducting discretionary maintenance capital expenditures, which we believe are similar in nature in this context to certain other discretionary expenditures, such as growth capital expenditures, distributions/dividends and equity buybacks. Unfortunately, not all maintenance capital expenditures are clearly discretionary or non-discretionary in nature. Therefore, we developed a measure, maintenance capital utilized, that we believe is more useful in the determination of Available Cash before Reserves.

Maintenance Capital Utilized

We believe our maintenance capital utilized measure is the most useful quarterly maintenance capital requirements measure to use to derive our Available Cash before Reserves measure. We define our maintenance capital utilized measure as that portion of the amount of previously incurred maintenance capital expenditures that we utilize during the relevant quarter, which would be equal to the sum of the maintenance capital expenditures we have incurred for each project/component in prior quarters allocated ratably over the useful lives of those projects/components.

Our maintenance capital utilized measure constitutes a proxy for non-discretionary maintenance capital expenditures and it takes into consideration the relationship among maintenance capital expenditures, operating expenses and depreciation from period to period. Because we did not initially use our maintenance capital utilized measure before 2014, our maintenance capital utilized calculations will reflect the utilization of solely those maintenance capital expenditures incurred since December 31, 2013.

ADJUSTED EBITDA

Purposes, Uses and Definition

Adjusted EBITDA is commonly used as a supplemental financial measure by management and by external users of financial statements such as investors, commercial banks, research analysts and rating agencies, to aid in assessing, among other things:

(1)
the financial performance of our assets without regard to financing methods, capital structures or historical cost basis;

(2)
our operating performance as compared to those of other companies in the midstream energy industry, without regard to financing and capital structure;

(3)
the viability of potential projects, including our cash and overall return on alternative capital investments as compared to those of other companies in the midstream energy industry;

(4)
the ability of our assets to generate cash sufficient to satisfy certain non-discretionary cash requirements, including interest payments and certain maintenance capital requirements; and

(5)
our ability to make certain discretionary payments, such as distributions on our preferred and common units, growth capital expenditures, certain maintenance capital expenditures and early payments of indebtedness.

We define Adjusted EBITDA (“Adjusted EBITDA”) as Net income (loss) attributable to Genesis Energy, L.P. before interest, taxes, depreciation, depletion and amortization (including impairment, write-offs, accretion and similar items) after eliminating other non-cash revenues, expenses, gains, losses and charges (including any loss on asset dispositions), plus or minus certain other select items that we view as not indicative of our core operating results (collectively, “Select Items”). Although we do not necessarily consider all of our Select Items to be non-recurring, infrequent or unusual, we believe that an understanding of these Select Items is important to the evaluation of our core operating results. The most significant Select Items in the relevant reporting periods are set forth below.

The table below includes the Select Items discussed above as applicable to the reconciliation of Net income (loss) attributable to Genesis Energy, L.P. to Adjusted EBITDA and Available Cash before Reserves:

Three Months Ended

March 31,

2026

2025

(in thousands)

I.

Applicable to all Non-GAAP Measures

Differences in timing of cash receipts for certain contractual arrangements⁽¹⁾

$

(2,094

)

$

(8,287

)

Certain non-cash items:

Unrealized losses (gains) on derivative transactions excluding fair value hedges, net of changes in inventory value

815

(71

)

Loss on debt extinguishment

3,540

844

Adjustment regarding equity investees⁽²⁾

5,521

6,092

Other

(4,618

)

(2,722

)

Sub-total Select Items, net⁽³⁾

3,164

(4,144

)

II.

Applicable only to Adjusted EBITDA and Available Cash before Reserves

Certain transaction costs

3,122

25,208

Other

(1,462

)

(1,475

)

Total Select Items, net⁽⁴⁾

$

4,824

$

19,589

(1)
Includes the difference in timing of cash receipts from or billings to customers during the period and the revenue we recognize in accordance with GAAP on our related contracts. For purposes of our non-GAAP measures, we add those amounts in the period of payment and deduct them in the period in which GAAP recognizes them.

(2)
Represents the net effect of adding distributions from equity investees and deducting earnings of equity investees net to us.

(3)
Represents Select Items applicable to all Non-GAAP measures.

(4)
Represents Select Items applicable to Adjusted EBITDA and Available Cash before Reserves.

SEGMENT MARGIN

Our chief operating decision maker (our Chief Executive Officer) evaluates segment performance based on a variety of measures including Segment Margin, segment volumes, and, where relevant, capital investment. We define Segment Margin (“Segment Margin”) as revenues less product costs, operating expenses and segment general and administrative expenses (all of which are net of the effects of our noncontrolling interest holders), plus or minus applicable Select Items from continuing operations. Although we do not necessarily consider all of our Select Items to be non-recurring, infrequent or unusual, we believe that an understanding of these Select Items is important to the evaluation of our core operating results.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507961901/en/

Genesis Energy, L.P.

Dwayne Morley

Vice President – Investor Relations

(713) 860-2536

KEYWORDS: Texas United States North America

INDUSTRY KEYWORDS: Trucking Maritime Mining/Minerals Oil/Gas Transport Natural Resources Energy

MEDIA:

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Posted on May 7, 2026 6:04 am
Patria Reports First Quarter 2026 Earnings Results

GRAND CAYMAN, Cayman Islands, May 07, 2026 (GLOBE NEWSWIRE) — Patria Investments Limited (Nasdaq:PAX) reported today its unaudited results for the first quarter ended March 31, 2026. The full detailed presentation of Patria’s first quarter 2026 results can be accessed on the Shareholders section of Patria’s website at https://ir.patria.com/.

“We delivered a strong start to 2026, driven by continued fundraising momentum, meaningful growth in Fee-Earning AUM, and consistent investment performance across our platform,” said Alex Saigh, Chief Executive Officer of Patria. “We raised $2.1 billion in the quarter, grew Fee-Earning AUM to nearly $46 billion, and delivered 19% year-over-year growth in Fee Related Earnings, keeping us firmly on track to achieve our full year objectives. With increasing global and local investor engagement, a strengthened balance sheet following our inaugural bond issuance, and a highly diversified, long duration asset base, we believe Patria is exceptionally well positioned to capture the opportunities ahead.”

Financial Highlights (reported in $ USD)

IFRS results included $2.3 million of net income attributable to Patria in Q1 2026. Patria generated Fee Related Earnings of $50.5 million in Q1 2026, up 19% from $42.6 million in Q1 2025, with an FRE margin of 54.6%. Distributable Earnings were $42.4 million for Q1 2026, or $0.27 per share.

Dividends

Patria declared a quarterly dividend of $0.1625 per share to record holders of common stock at the close of business on May 18th, 2026. This dividend will be paid on June 11th, 2026.

Conference Call

Patria will host its first quarter 2026 earnings conference call via public webcast on May 7^th, 2026, at 9:00 a.m. ET. To register and join, please use the following link:

https://edge.media-server.com/mmc/p/6u8sf7vo/

For those unable to listen to the live broadcast, there will be a webcast replay on the Shareholders section of Patria’s website at https://ir.patria.com/ shortly after the call’s completion.

About Patria

Patria is a global alternative asset management firm focused on the mid-market segment, specializing in resilient sectors across select regions. We are a leading asset manager in Latin America and have a strong presence in Europe through our extensive network of General Partners relationships. Our on-the-ground presence combines investment leaders, sector experts, company managers, and strategic relationships, allowing us to identify compelling investment opportunities accessible only to those with local proficiency. With over 37 years of experience and more than $59 billion in assets under management, we believe we consistently deliver attractive returns through long-term investments, while promoting inclusive and sustainable development in the regions where we operate. Further information is available at www.patria.com.

Asset Classes: Infrastructure, Credit, Real Estate, Private Equity, Solutions (GPMS), and Public Equities

Main sectors: Agribusiness, Power & Energy, Healthcare, Logistics & Transportations, Food & Beverage and Digital & Tech Services

Investment Regions: Latin America, Europe and the U.S.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words, among others. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Further information on these and other factors that could affect our financial results is included in filings we have made and will make with the U.S. Securities and Exchange Commission from time to time, including but not limited to those described under the section entitled “Risk Factors” in our most recent annual report on Form 20-F, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our periodic filings.

Contact

Patria Shareholder Relations
E. [email protected]
T. +1 917 769 1611

Media – Burson

E. [email protected]
T. +44 20 7113 3468

Posted on May 7, 2026 6:04 am
Targa Resources Corp. Reports Record First Quarter 2026 Financial Results and Increases Financial Outlook for 2026

HOUSTON, May 07, 2026 (GLOBE NEWSWIRE) — Targa Resources Corp. (NYSE: TRGP) (“TRGP,” the “Company” or “Targa”) today reported first quarter 2026 results.

First quarter 2026 net income attributable to Targa Resources Corp. was $480 million compared to $271 million for the first quarter of 2025. The Company reported adjusted earnings before interest, income taxes, depreciation and amortization, and other non-cash items (“adjusted EBITDA”)⁽¹⁾ of $1,403 million for the first quarter of 2026 compared to $1,179 million for the first quarter of 2025.

Highlights

Record adjusted EBITDA for the first quarter of $1.4 billion, an increase of 19% year-over-year

Record Permian inlet volumes during the first quarter

Record fractionation volumes during the first quarter

Increasing full year 2026 adjusted EBITDA estimate to $5.7 billion to $5.9 billion

In February 2026, completed our new Falcon II processing plant in Permian Delaware

In late March 2026, completed our new East Pembrook processing plant in Permian Midland

In April 2026, completed our new Train 11 fractionator in Mont Belvieu, TX

In May 2026, starting up operation of our Delaware Express NGL Pipeline expansion

Announced today two new processing plants in Permian Delaware (“Roadrunner III” and “Copperhead II”)

Continue to estimate 2026 net growth capital expenditures of approximately $4.5 billion

On April 16, 2026, the Company declared a quarterly cash dividend of $1.25 per common share, or $5.00 per common share on an annualized basis, for the first quarter of 2026. This dividend represents a 25 percent increase over the common dividend declared with respect to the first quarter of 2025. Total cash dividends of approximately $268 million will be paid on May 15, 2026 on all outstanding shares of common stock to holders of record as of the close of business on April 30, 2026.

During the first quarter of 2026, Targa repurchased 227,801 shares of its common stock at a weighted average per share price of $241.43 for a total net cost of $55 million. As of March 31, 2026, there was $1,319 million remaining under the Company’s share repurchase programs.

First Quarter 2026 – Sequential Quarter over Quarter Commentary

Targa reported record first quarter adjusted EBITDA of $1,403 million, representing a 5 percent increase compared to the fourth quarter of 2025. The sequential increase was driven by record Permian volumes in our Gathering and Processing (“G&P”) segment, primarily from the acquisition of certain assets in the Permian Basin, as well as higher marketing margin and record NGL fractionation volumes in our Logistics and Transportation (“L&T”) segment.

In our G&P segment, higher sequential adjusted operating margin was driven by higher Permian inlet volumes attributable to the acquisition of certain assets in the Permian Basin, the completion of our Falcon II plant, and continued strong producer activity, partially offset by severe winter weather and price-related producer curtailments which impacted our Permian volumes during the first quarter.

In our L&T segment, lower sequential first quarter adjusted operating margin was attributable to lower NGL transportation volumes and lower LPG export volumes, partially offset by higher marketing margin. NGL transportation and fractionation volumes were affected by the impacts of severe winter weather and price-related producer curtailments on our G&P systems. LPG export volumes were reduced by an unplanned outage at a portion of our export facility late in the first quarter, which was resolved early in the second quarter. Marketing margin increased due to greater optimization opportunities.

Capitalization, Financing and Liquidity

The Company’s total consolidated debt as of March 31, 2026 was $19,132 million, net of $132 million of debt issuance costs and $39 million of unamortized discount, with $17,900 million of outstanding senior unsecured notes, $457 million outstanding under the Commercial Paper Program, $600 million outstanding under the Securitization Facility, and $347 million of finance lease liabilities.

Total consolidated liquidity as of March 31, 2026 was approximately $3.1 billion, including $3.0 billion available under the TRGP Revolver and $100 million of cash.

Financing Update

In March 2026, Targa completed an underwritten public offering of $750 million of 4.350% Notes due 2031 and $750 million of 6.050% Notes due 2056. The Company used the net proceeds from the debt issuance for general corporate purposes, including to reduce borrowings under the Commercial Paper Program.

Growth Projects Update

In our G&P segment, we commenced operations of our new Falcon II plant in the Permian Delaware in February 2026 and our new East Pembrook plant in the Permian Midland in late March 2026. Construction continues on our East Driver plant in Permian Midland, and our Copperhead, Yeti I and Yeti II plants in Permian Delaware, and our G&P projects remain on track.

In May 2026, in response to increasing production and to meet the infrastructure needs of our customers, we announced the construction of a new 265 million cubic feet per day (“MMcf/d”) natural gas processing plant, Roadrunner III, and a new 275 MMcf/d natural gas processing plant, Copperhead II. Both plants will be located in the Permian Delaware and are expected to begin operations in the first quarter of 2028. In February 2026, we announced orders of long-lead items for Roadrunner III and Copperhead II.

In our L&T segment, we commenced operations of our Train 11 fractionator in Mont Belvieu in early April 2026 and are currently starting up operation of our Delaware Express NGL Pipeline expansion. Construction continues on our Train 12 and Train 13 fractionators in Mont Belvieu, our Speedway NGL Pipeline, our GPMT LPG Export Expansion, and our Bull Run, Buffalo Run and Forza intra-basin residue gas pipeline projects. Our L&T projects remain on track.

2026 Outlook

Targa now estimates full year 2026 adjusted EBITDA to be between $5.7 billion and $5.9 billion, a 17 percent increase year-over-year, based on the midpoint of the range. The increase in our full year financial outlook is driven by our strong outlook for marketing and optimization opportunities, LPG export operations, and continued strength of volume growth across Targa’s integrated assets. Second quarter 2026 Permian inlet volumes are currently trending significantly higher relative to the first quarter, and our estimated full year average 2026 inlet volumes remain consistent with our expectations despite the impacts of price-related producer curtailments. We continue to estimate net growth capital expenditures to be approximately $4.5 billion which includes capital spending for announced infrastructure projects underway including our new Roadrunner III and Copperhead II processing plants in the Permian announced today. Our estimate for 2026 net maintenance capital expenditures remains unchanged at approximately $250 million.

An earnings supplement presentation and updated investor presentation are available under Events and Presentations in the Investors section of our website at www.targaresources.com/investors/events.

Conference Call

We will host a conference call for the investment community at 11:00 a.m. Eastern time (10:00 a.m. Central time) on May 7, 2026 to discuss first quarter results. The conference call can be accessed via webcast under Events and Presentations in the Investors section of our website at www.targaresources.com/investors/events, or by going directly to https://edge.media-server.com/mmc/p/r9w9ai8y/. A webcast replay will be available at the link above approximately two hours after the conclusion of the event.

⁽¹⁾ ^{Adjusted EBITDA and adjusted operating margin (segment) are non-GAAP financial measures and are discussed under “Non-GAAP Financial Measures.”}



Targa Resources Corp. – Consolidated Financial Results of Operations

Three Months Ended March 31,

2026 2025 2026 vs. 2025

(In millions)

Revenues:

Sales of commodities $ 3,344.6 $ 3,884.4 $ (539.8 ) (14 %)

Fees from midstream services 750.1 677.1 73.0 11 %

Total revenues 4,094.7 4,561.5 (466.8 ) (10 %)

Product purchases and fuel 2,394.5 3,257.8 (863.3 ) (26 %)

Operating expenses 333.7 303.6 30.1 10 %

Depreciation and amortization expense 426.0 367.6 58.4 16 %

General and administrative expense 107.8 94.5 13.3 14 %

Other operating (income) expense (14.2 ) (5.3 ) (8.9 ) 168 %

Income (loss) from operations 846.9 543.3 303.6 56 %

Interest expense, net (227.6 ) (197.1 ) (30.5 ) 15 %

Equity earnings (loss) 8.6 5.5 3.1 56 %

Other, net (16.6 ) 0.3 (16.9 ) NM

Income tax (expense) benefit (123.9 ) (72.2 ) (51.7 ) 72 %

Net income (loss) 487.4 279.8 207.6 74 %

Less: Net income (loss) attributable to noncontrolling interests 7.8 9.3 (1.5 ) (16 %)

Net income (loss) attributable to Targa Resources Corp. 479.6 270.5 209.1 77 %

Premium on repurchase of noncontrolling interests, net of tax — 70.5 (70.5 ) (100 %)

Net income (loss) attributable to common shareholders $ 479.6 $ 200.0 $ 279.6 140 %

Financial data:

Adjusted EBITDA (1) $ 1,402.7 $ 1,178.5 $ 224.2 19 %

Adjusted cash flow from operations (1) 1,179.9 970.0 209.9 22 %

Adjusted free cash flow (1) 227.9 328.2 (100.3 ) (31 %)

⁽¹⁾ ^{Adjusted EBITDA, adjusted cash flow from operations and adjusted free cash flow are non-GAAP financial measures and are discussed under “Non-GAAP Financial Measures.”}

^NM ^{Due to a low denominator, the noted percentage change is disproportionately high and as a result, considered not meaningful.}

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

The decrease in commodity sales reflected lower NGL, natural gas and condensate prices ($1,064.2 million), partially offset by higher NGL, natural gas and condensate volumes ($476.9 million) and the favorable impact of hedges ($47.5 million).

The increase in fees from midstream services was primarily due to higher gas gathering and processing fees, partially offset by lower export volumes.

The decrease in product purchases and fuel reflected lower NGL and natural gas prices, partially offset by higher NGL and natural gas volumes.

The increase in operating expenses was primarily due to higher labor and maintenance costs due to increased activity and system expansions, and the acquisition of certain assets in the Permian Basin.

See “—Results of Operations—By Reportable Segment” for additional information on a segment basis.

The increase in depreciation and amortization expense was primarily due to the acquisition of certain assets in the Permian Basin and the impact of system expansions on the Company’s asset base.

The increase in general and administrative expense was primarily due to higher compensation and benefits.

The increase in interest expense, net, was primarily due to higher borrowings, partially offset by an increase in capitalized interest.

The decrease in other, net, was primarily due to the premium paid on the redemption of all of the Partnership’s 6.875% Notes due 2029.

The increase in income tax (expense) benefit was primarily due to the increase in pre-tax book income.

The premium on repurchase of noncontrolling interests, net of tax was due to the Badlands Transaction in the first quarter of 2025.

Review of Segment Performance

The following discussion of segment performance includes inter-segment activities. The Company views segment operating margin and adjusted operating margin as important performance measures of the core profitability of its operations. These measures are key components of internal financial reporting and are reviewed for consistency and trend analysis. For a discussion of adjusted operating margin, see “Non-GAAP Financial Measures ― Adjusted Operating Margin.” Segment operating financial results and operating statistics include the effects of intersegment transactions. These intersegment transactions have been eliminated from the consolidated presentation.

The Company operates in two primary segments: (i) Gathering and Processing; and (ii) Logistics and Transportation.

Gathering and Processing Segment

The Gathering and Processing segment includes assets used in the gathering and/or purchase and sale of natural gas produced from oil and gas wells, removing impurities and processing this raw natural gas into merchantable natural gas by extracting NGLs; and assets used for the gathering and terminaling and/or purchase and sale of crude oil. The Gathering and Processing segment’s assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays); and the onshore and near offshore regions of the Louisiana Gulf Coast.

The following table provides summary data regarding results of operations of this segment for the periods indicated:

Three Months Ended March 31,

2026 2025 2026 vs. 2025

(In millions, except operating statistics and price amounts)

Operating margin $ 703.5 $ 602.2 $ 101.3 17 %

Operating expenses 233.6 208.2 25.4 12 %

Adjusted operating margin $ 937.1 $ 810.4 $ 126.7 16 %

Operating statistics (1):

Plant natural gas inlet, MMcf/d (2) (3)

Permian Midland (4) 3,153.9 2,985.6 168.3 6 %

Permian Delaware 3,576.1 3,020.3 555.8 18 %

Total Permian 6,730.0 6,005.9 724.1 12 %

Central (5) 1,027.3 984.7 42.6 4 %

Badlands (5) (6) 127.0 136.9 (9.9 ) (7 %)

Coastal 547.1 398.8 148.3 37 %

Total 8,431.4 7,526.3 905.1 12 %

NGL production, MBbl/d (3)

Permian Midland (4) 464.7 429.5 35.2 8 %

Permian Delaware 469.6 366.4 103.2 28 %

Total Permian 934.3 795.9 138.4 17 %

Central (5) 102.1 98.1 4.0 4 %

Badlands (5) 16.2 16.4 (0.2 ) (1 %)

Coastal 37.8 32.7 5.1 16 %

Total 1,090.4 943.1 147.3 16 %

Crude oil gathered, MBbl/d 135.1 136.1 (1.0 ) (1 %)

Natural gas sales, BBtu/d (3) 3,040.3 2,592.8 447.5 17 %

NGL sales, MBbl/d (3) 625.9 570.2 55.7 10 %

Condensate sales, MBbl/d 21.8 18.1 3.7 20 %

Average realized prices (7):

Natural gas, $/MMBtu 0.57 2.24 (1.67 ) (75 %)

NGL, $/gal 0.39 0.50 (0.11 ) (22 %)

Condensate, $/Bbl 65.51 72.32 (6.81 ) (9 %)

_______________________

⁽¹⁾ ^{Segment operating statistics include the effect of intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period, and the denominator is the number of calendar days during the period.}

⁽²⁾ ^{Plant natural gas inlet represents the Company’s undivided interest in the volume of natural gas passing through the meter located at the inlet of a natural gas processing plant.}

⁽³⁾ ^{Plant natural gas inlet volumes and gross NGL production volumes include producer take-in-kind volumes, while natural gas sales and NGL sales exclude producer take-in-kind volumes.}

⁽⁴⁾ ^{Permian Midland includes operations in WestTX, of which the Company owns a 72.8% undivided interest, and other plants that are owned 100% by the Company. Operating results for the WestTX undivided interest assets are presented on a pro-rata net basis in the Company’s reported financials.}

⁽⁵⁾ ^{Operations include facilities that are not wholly owned by the Company.}

⁽⁶⁾ ^{Badlands natural gas inlet represents the total wellhead volume and includes the Targa volumes processed at the Little Missouri 4 plant.}

⁽⁷⁾ ^{Average realized prices, net of fees, include the effect of realized commodity hedge gain/loss attributable to the Company’s equity volumes. The price is calculated using total commodity sales plus the hedge gain/loss as the numerator and total sales volume as the denominator, net of fees.}

The following table presents the realized commodity hedge gain (loss) attributable to the Company’s equity volumes that are included in the adjusted operating margin of the Gathering and Processing segment:

Three Months Ended March 31, 2026 Three Months Ended March 31, 2025

(In millions, except volumetric data and price amounts)

Volume

Settled Price

Spread (1) Gain

(Loss) Volume

Settled Price

Spread (1) Gain

(Loss)

Natural gas (BBtu) 8.4 $ 2.02 $ 17.0 7.7 $ 0.96 $ 7.4

NGL (MMgal) 67.7 0.01 0.9 97.5 (0.07 ) (6.6 )

Crude oil (MBbl) 0.7 (4.14 ) (2.9 ) 0.7 1.00 0.7

$ 15.0 $ 1.5

⁽¹⁾ ^{The price spread is the differential between the contracted derivative instrument pricing and the price of the corresponding settled commodity transaction.}

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

The increase in adjusted operating margin was predominantly due to higher natural gas inlet volumes in the Permian which drove higher fee-based margin, partially offset by lower commodity prices. The increase in natural gas inlet volumes in the Permian was attributable to the addition of the Pembrook II plant during the third quarter of 2025, the Bull Moose II plant during the fourth quarter of 2025, the Falcon II plant during the first quarter of 2026, continued strong producer activity and the acquisition of certain assets in the Permian Basin during the first quarter of 2026.

The increase in operating expenses was primarily due to higher volumes, multiple plant additions and the acquisition of certain assets in the Permian Basin during the first quarter of 2026.

Logistics and Transportation Segment

The Logistics and Transportation segment includes the activities and assets necessary to convert mixed NGLs into NGL products and also includes other assets and value-added services such as transporting, storing, fractionating, terminaling, and marketing of NGLs and NGL products, including services to LPG exporters and certain natural gas supply and marketing activities in support of the Company’s other businesses. The Logistics and Transportation segment also includes Targa’s NGL pipeline system, which connects the Company’s gathering and processing positions in the Permian Basin, Southern Oklahoma and North Texas with the Company’s Downstream facilities in Mont Belvieu, Texas. The Company’s Downstream facilities are located predominantly in Mont Belvieu and Galena Park, Texas, and in Lake Charles, Louisiana.

The following table provides summary data regarding results of operations of this segment for the periods indicated:

Three Months Ended March 31,

2026 2025 2026 vs. 2025

(In millions, except operating statistics)

Operating margin $ 773.3 $ 646.7 $ 126.6 20 %

Operating expenses 100.2 95.5 4.7 5 %

Adjusted operating margin $ 873.5 $ 742.2 $ 131.3 18 %

Operating statistics MBbl/d (1):

NGL pipeline transportation volumes (2) 1,016.8 843.5 173.3 21 %

Fractionation volumes 1,145.2 979.9 165.3 17 %

Export volumes (3) 437.0 447.7 (10.7 ) (2 %)

NGL sales 1,304.0 1,186.4 117.6 10 %

_______________________

⁽¹⁾ ^{Segment operating statistics include intersegment amounts, which have been eliminated from the consolidated presentation. For all volume statistics presented, the numerator is the total volume sold during the period and the denominator is the number of calendar days during the period.}

⁽²⁾ ^{Represents the total quantity of mixed NGLs that earn a transportation margin.}

⁽³⁾ ^{Export volumes represent the quantity of NGL products delivered to third-party customers at the Company’s Galena Park Marine Terminal that are destined for international markets.}

Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025

The increase in adjusted operating margin was due to higher marketing margin and higher pipeline transportation and fractionation margin. Marketing margin increased due to greater optimization opportunities. Pipeline transportation and fractionation volumes benefited from higher supply volumes primarily from the Company’s Permian Gathering and Processing systems.

The increase in operating expenses was due to higher repairs and maintenance and higher compensation and benefits.

Other

Three Months Ended March 31,

2026 2025 2026 vs. 2025

(In millions)

Operating margin $ (110.3 ) $ (248.8 ) $ 138.5

Adjusted operating margin $ (110.3 ) $ (248.8 ) $ 138.5

Other contains the unrealized mark-to-market gains/losses related to derivative contracts that were not designated as cash flow hedges. The Company has entered into derivative instruments to hedge the commodity price associated with a portion of the Company’s future commodity purchases and sales and natural gas transportation basis risk within the Company’s Logistics and Transportation segment.

About Targa Resources Corp.

Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent infrastructure companies in North America. The Company owns, operates, acquires and develops a diversified portfolio of complementary domestic infrastructure assets and its operations are critical to the efficient, safe and reliable delivery of energy across the United States and increasingly to the world. The Company’s assets connect natural gas and NGLs to domestic and international markets with growing demand for cleaner fuels and feedstocks.

Targa is a FORTUNE 500 company and is included in the S&P 500.

For more information, please visit the Company’s website at www.targaresources.com.

Non-GAAP Financial Measures

This press release includes the Company’s non-GAAP financial measures: adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment). The following tables provide reconciliations of these non-GAAP financial measures to their most directly comparable GAAP measures.

The Company utilizes non-GAAP measures to analyze the Company’s performance. Adjusted EBITDA, adjusted cash flow from operations, adjusted free cash flow and adjusted operating margin (segment) are non-GAAP measures. The GAAP measures most directly comparable to these non-GAAP measures are income (loss) from operations, Net income (loss) attributable to Targa Resources Corp. and segment operating margin. These non-GAAP measures should not be considered as an alternative to GAAP measures and have important limitations as analytical tools. Investors should not consider these measures in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Additionally, because the Company’s non-GAAP measures exclude some, but not all, items that affect income and segment operating margin, and are defined differently by different companies within the Company’s industry, the Company’s definitions may not be comparable with similarly titled measures of other companies, thereby diminishing their utility. Management compensates for the limitations of the Company’s non-GAAP measures as analytical tools by reviewing the comparable GAAP measures, understanding the differences between the measures and incorporating these insights into the Company’s decision-making processes.

Adjusted Operating Margin

The Company defines adjusted operating margin for the Company’s segments as revenues less product purchases and fuel. It is impacted by volumes and commodity prices as well as by the Company’s contract mix and commodity hedging program.

Gathering and Processing adjusted operating margin consists primarily of:

service fees related to natural gas and crude oil gathering, treating and processing; and

revenues from the sale of natural gas, condensate, crude oil and NGLs less producer settlements, fuel and transport and the Company’s equity volume hedge settlements.

Logistics and Transportation adjusted operating margin consists primarily of:

service fees (including the pass-through of energy costs included in certain fee rates);

system product gains and losses; and

NGL and natural gas sales, less NGL and natural gas purchases, fuel, third-party transportation costs and the net inventory change.

The adjusted operating margin impacts of mark-to-market hedge unrealized changes in fair value are reported in Other.

Adjusted operating margin for the Company’s segments provides useful information to investors because it is used as a supplemental financial measure by management and by external users of the Company’s financial statements, including investors and commercial banks, to assess:

the financial performance of the Company’s assets without regard to financing methods, capital structure or historical cost basis;

the Company’s operating performance and return on capital as compared to other companies in the midstream energy sector, without regard to financing or capital structure; and

the viability of capital expenditure projects and acquisitions and the overall rates of return on alternative investment opportunities.

Management reviews adjusted operating margin and operating margin for the Company’s segments monthly as a core internal management process. The Company believes that investors benefit from having access to the same financial measures that management uses in evaluating the Company’s operating results. The reconciliation of the Company’s adjusted operating margin to the most directly comparable GAAP measure is presented under “Review of Segment Performance.”

Adjusted EBITDA

The Company defines adjusted EBITDA as Net income (loss) attributable to Targa Resources Corp. before interest, income taxes, depreciation and amortization, and other items that the Company believes should be adjusted consistent with the Company’s core operating performance. The adjusting items are detailed in the adjusted EBITDA reconciliation table and its footnotes. Adjusted EBITDA is used as a supplemental financial measure by the Company and by external users of the Company’s financial statements such as investors, commercial banks and others to measure the ability of the Company’s assets to generate cash sufficient to pay interest costs, support the Company’s indebtedness and pay dividends to the Company’s investors.

Adjusted Cash Flow from Operations and Adjusted Free Cash Flow

The Company defines adjusted cash flow from operations as adjusted EBITDA less cash interest expense on debt obligations and cash tax (expense) benefit . The Company defines adjusted free cash flow as adjusted cash flow from operations less maintenance capital expenditures and growth capital expenditures, net of any reimbursements of project costs and contributions from noncontrolling interests, and including contributions to investments in unconsolidated affiliates. Adjusted cash flow from operations and adjusted free cash flow are performance measures used by the Company and by external users of the Company’s financial statements, such as investors, commercial banks and research analysts, to assess the Company’s ability to generate cash earnings (after servicing the Company’s debt and funding capital expenditures) to be used for corporate purposes, such as payment of dividends, retirement of debt or redemption of other financing arrangements.

The following table reconciles the non-GAAP financial measures used by management to the most directly comparable GAAP measures for the periods indicated:

Three Months Ended March 31,

2026 2025

(In millions)

Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA, Adjusted Cash Flow from Operations and Adjusted Free Cash Flow

Net income (loss) attributable to Targa Resources Corp. $ 479.6 $ 270.5

Interest (income) expense, net 227.6 197.1

Income tax expense (benefit) 123.9 72.2

Depreciation and amortization expense 426.0 367.6

(Gain) loss on sale or disposition of assets (1.0 ) (0.5 )

Write-down of assets 4.3 2.0

(Gain) loss from financing activities 10.1 0.6

Equity (earnings) loss (8.6 ) (5.5 )

Distributions from unconsolidated affiliates 4.7 4.9

Change in contingent consideration 0.7 —

Compensation on equity grants 23.2 17.6

Risk management activities 110.3 248.8

Noncontrolling interests adjustments (1) 1.9 3.2

Adjusted EBITDA $ 1,402.7 $ 1,178.5

Interest expense on debt obligations (2) (222.8 ) (193.2 )

Cash tax (expense) benefit — (15.3 )

Adjusted Cash Flow from Operations $ 1,179.9 $ 970.0

Maintenance capital expenditures, net (3) (37.6 ) (47.3 )

Growth capital expenditures, net (3) (914.4 ) (594.5 )

Adjusted Free Cash Flow $ 227.9 $ 328.2

_______________________

⁽¹⁾ ^{Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amortization expense as well as earnings for certain plants within Targa’s WestTX joint venture not subject to noncontrolling interest accounting.}

⁽²⁾ ^{Excludes amortization recognized in interest expense.}

⁽³⁾ ^{Represents capital expenditures, net of any reimbursements of project costs and contributions from noncontrolling interests, and includes contributions to investments in unconsolidated affiliates.}

The following table presents a reconciliation of estimated net income of the Company to estimated adjusted EBITDA for 2026:

2026E

(In millions)

Reconciliation of Estimated Net Income Attributable to Targa Resources Corp. to

Estimated Adjusted EBITDA

Net income attributable to Targa Resources Corp. $ 2,265.0

Interest expense, net 945.0

Income tax expense 640.0

Depreciation and amortization expense 1,745.0

Equity earnings (30.0 )

Distributions from unconsolidated affiliates 35.0

Compensation on equity grants 80.0

Risk management activities and other 123.0

Noncontrolling interests adjustments (1) (3.0 )

Estimated Adjusted EBITDA $ 5,800.0

_______________________

⁽¹⁾ ^{Represents adjustments related to the Company’s subsidiaries with noncontrolling interests, including depreciation and amortization expense as well as earnings for certain plants within Targa’s WestTX joint venture not subject to noncontrolling interest accounting.}

Regulation FD Disclosures

The Company uses any of the following to comply with its disclosure obligations under Regulation FD: press releases, SEC filings, public conference calls, or the Company’s website. The Company routinely posts important information on its website at www.targaresources.com, including information that may be deemed to be material. The Company encourages investors and others interested in the company to monitor these distribution channels for material disclosures.

Forward-Looking Statements

Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements, including statements regarding the Company’s projected financial performance, capital spending, payment of future dividends and stock repurchase activity. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the Company’s control, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, actions taken by other countries with significant hydrocarbon production, weather, political, economic and market conditions, including a decline in the price and market demand for natural gas, natural gas liquids and crude oil, the timing and success of the Company’s completion of capital projects and business development efforts, the expected growth of volumes on the Company’s systems, the impact of significant public health crises, commodity price volatility due to ongoing or new global conflicts, changes in laws and regulations, particularly with regard to taxes, tariffs and international trade, and other uncertainties. These and other applicable uncertainties, factors and risks are described more fully in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company does not undertake an obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Targa Investor Relations
[email protected]
(713) 584-1133

Posted on May 7, 2026 6:03 am
Walker & Dunlop Reports First Quarter 2026 Financial Results

Walker & Dunlop Reports First Quarter 2026 Financial Results

FIRST QUARTER 2026 HIGHLIGHTS

Total transaction volume of $13.7 billion, up 94% from Q1’25

Total revenues of $301.3 million, up 27% from Q1’25

Net income of $15.9 million and diluted earnings per share of $0.46, up 476% and 475%, respectively from Q1’25

Adjusted EBITDA⁽¹⁾of $73.8 million, up 14% from Q1’25

Adjusted core EPS⁽²⁾ of $1.02, up 20% from Q1’25

Servicing portfolio of $146.4 billion as of March 31, 2026, up 8% from March 31, 2025

Repurchased $13.3 million shares of common stock during the quarter at a weighted average price of $47.13

BETHESDA, Md.–(BUSINESS WIRE)–Walker & Dunlop, Inc. (NYSE: WD) (the “Company,” “Walker & Dunlop” or “W&D”) reported a strong first quarter of 2026, highlighted by a significant increase in total transaction volume to $13.7 billion, a 94% increase year over year. Total revenues grew 27% to $301.3 million, driving a 476% increase in net income to $15.9 million, or $0.46 per diluted share.

The Capital Markets segment delivered improved operating margins and profitability as continued strength in origination activity expanded the Company’s servicing portfolio by 8% year over year. Adjusted EBITDA increased 14% in the first quarter of 2026, and adjusted core EPS was up 20% year over year to $1.02. Results this quarter also include $10 million of indemnified and repurchased loan expenses, which the Company continues to actively manage. The first quarter of 2026 demonstrates the earnings power of Walker & Dunlop’s platform as market activity improves.

“The strength of our first-quarter transaction volumes and earnings is due to the W&D team, our brand, and our market position as one of the very best commercial real estate capital markets firms in the world,” commented Willy Walker, Walker & Dunlop’s Chairman and CEO. “Strong financing volumes generated robust quarterly transaction fees, which, coupled with recurring servicing and asset management fees, generated solid quarterly earnings as we begin the pursuit of our annual and five-year financial goals.”

Walker continued, “We enter the second quarter with a strong pipeline across all executions, customer segments, and geographies. While the macro environment remains challenging — marked by interest rate volatility, high oil prices, and the Iran conflict — many clients continue to transact due to loan maturities, the need to return capital to investors, and investment opportunities across the country. We remain confident in our 2026 outlook and in our ability to grow our company in the coming quarters and years.”

______________________________

(1)

Adjusted EBITDA is a non-GAAP financial measure the Company presents to help investors better understand our operating performance. For a reconciliation of adjusted EBITDA to net income, refer to the sections of this press release below titled “Non-GAAP Financial Measures,” “Adjusted Financial Measure Reconciliation to GAAP” and “Adjusted Financial Measure Reconciliation to GAAP by Segment.”

(2)

Adjusted core EPS is a non-GAAP financial measure the Company presents to help investors better understand our operating performance. For a reconciliation of Adjusted core EPS to diluted EPS, refer to the sections of this press release below titled “Non-GAAP Financial Measures” and “Adjusted Core EPS Reconciliation.”

CONSOLIDATED FIRST QUARTER 2026

OPERATING RESULTS

TRANSACTION VOLUMES

(in thousands)

Q1 2026

Q1 2025

$ Variance

% Variance

Fannie Mae

$

1,553,899

$

1,511,794

$

42,105

3

%

Freddie Mac

3,124,128

808,247

2,315,881

287

Ginnie Mae – HUD

481,384

148,158

333,226

225

Brokered ⁽¹⁾

6,503,051

2,552,943

3,950,108

155

Principal Lending and Investing ⁽²⁾

87,900

175,500

(87,600

)

(50

)

Debt financing volume

$

11,750,362

$

5,196,642

$

6,553,720

126

%

Property sales volume

1,910,300

1,839,290

71,010

4

Total transaction volume

$

13,660,662

$

7,035,932

$

6,624,730

94

%

(1)

Brokered transactions for life insurance companies, commercial banks, and other capital sources.

(2)

Includes debt financing volumes from our interim lending platform and Walker & Dunlop Investment Partners, Inc. (“WDIP”) separate accounts.

DISCUSSION OF QUARTERLY RESULTS:

Total transaction volume grew 94% to $13.7 billion in the first quarter of 2026, reflecting Walker & Dunlop’s strong position within an increasingly active commercial real estate transactions market.

Fannie Mae and Freddie Mac (collectively, the “GSEs”) debt financing volumes increased 102% year over year, led by a 287% increase in Freddie Mac volumes, which included a $1.7 billion portfolio in the first quarter of 2026. Walker & Dunlop continues to be a top GSE lender, with a 12.3% market share in the first quarter of 2026, up from 9.6% in the first quarter of 2025.

HUD debt financing volume increased 225% in the first quarter of 2026 due to strong market demand for HUD construction financing. Walker & Dunlop is one of the largest HUD construction lenders.

The 155% increase in brokered debt financing volume during the first quarter of 2026 reflected a strong supply of capital to the commercial real estate transaction markets from life insurance companies, banks, commercial mortgage-backed securities, and other private capital providers.

Property sales volume increased 4% in the first quarter of 2026, as the macroeconomic fundamentals supporting the multifamily acquisitions market supported a strong start to the year. We outperformed the multifamily property sales market, which increased only slightly year over year.

MANAGED PORTFOLIO

(dollars in thousands, unless otherwise noted)

Q1 2026

Q1 2025

$ Variance

% Variance

Fannie Mae

$

73,498,820

$

69,176,839

$

4,321,981

6

%

Freddie Mac

44,836,263

38,556,682

6,279,581

16

Ginnie Mae – HUD

11,646,914

10,882,857

764,057

7

Brokered

16,385,040

17,032,338

(647,298

)

(4

)

Principal Lending and Investing

17,500

—

17,500

N/A

Total Servicing Portfolio

$

146,384,537

$

135,648,716

$

10,735,821

8

%

Assets under management

18,530,780

18,518,413

12,367

0

Total Managed Portfolio

$

164,915,317

$

154,167,129

$

10,748,188

7

%

Average custodial escrow account deposits (in billions)

$

2.6

$

2.5

Weighted-average servicing fee rate at period end (basis points)

23.4

24.4

Weighted-average remaining servicing portfolio term at period end (years)

7.1

7.5

DISCUSSION OF QUARTERLY RESULTS:

Our servicing portfolio continues to grow, primarily as a result of additional Fannie Mae, Freddie Mac, and HUD (collectively, “Agency”) debt financing volumes over the past 12 months.

During the first quarter of 2026, we added $2.4 billion of net loans to our servicing portfolio, and over the past 12 months, we added $10.7 billion of net loans to our servicing portfolio, with the growth led primarily by Fannie Mae and Freddie Mac loans.

$14.7 billion of Agency loans in our servicing portfolio are scheduled to mature over the next two years. The maturing loans, with a weighted-average servicing fee of 28 basis points, represent only 11% of the total Agency loans in our portfolio. Over the next five years, 54% of Agency loans are expected to mature, providing an opportunity for us to recapitalize or sell these deals for our clients in the coming years.

The mortgage servicing rights (“MSRs”) associated with our servicing portfolio are reported at an amortized cost of $795.8 million as of March 31, 2026, while the fair value is estimated at $1.4 billion. The relative long-term contractual nature of the servicing rights, coupled with ancillary revenues earned from the portfolio, generate attractive upside and value above our cost basis.

Assets under management totaled $18.5 billion as of March 31, 2026, and consisted of $15.9 billion of low-income housing tax credit (“LIHTC”) funds managed by our affordable housing investment management team, approximately $1.7 billion of debt funds, and $0.9 billion of equity funds, managed by our registered investment advisor, WDIP.

KEY PERFORMANCE METRICS

(in thousands, except per share amounts)

Q1 2026

Q1 2025

$ Variance

% Variance

Walker & Dunlop net income

$

15,871

$

2,754

$

13,117

476

%

Adjusted EBITDA

73,782

64,966

8,816

14

Diluted earnings per share

$

0.46

$

0.08

$

0.38

475

%

Adjusted core EPS

$

1.02

$

0.85

$

0.17

20

%

Operating margin

9

%

2

%

Return on equity

4

1

Key Expense Metrics (as a % of total revenues):

Personnel expense

51

%

51

%

Other operating expenses

10

14

DISCUSSION OF KEY PERFORMANCE METRICS:

Total revenues increased 27% this quarter, largely driven by higher transaction activity, which contributed to growth in origination fees and MSR income, as well as expansion of the managed portfolio, resulting in higher recurring servicing fees and related revenues. Total expenses increased 19%, reflecting higher variable personnel costs that scale with transaction-driven revenue growth, an increase in amortization and depreciation expenses, as well as an increase in indemnified and repurchased loan expenses due to a higher balance of repurchased loans year over year, partially offset by a decrease in other operating expenses.

The increases in net income and diluted earnings per share were primarily driven by growth across both operating segments-Capital Markets and Servicing and Asset Management. Capital Markets performance benefited from a significant increase in transaction activity, which drove meaningful operating leverage as volumes scaled. This activity continued to expand our managed portfolio, which grew 7% year over year, supporting higher recurring revenue and earnings in Servicing and Asset Management. The resulting increase in income before taxes contributed to an improved operating margin and was a key driver of higher return on equity.

The 14% increase in adjusted EBITDA was largely due to higher origination fees and servicing fees, partially offset by increases in personnel expenses, costs to operate indemnified and repurchased loans, and net income attributable to noncontrolling interest and temporary equity holders.

Adjusted core EPS increased 20%, largely for the same reasons that adjusted EBITDA increased.

KEY CREDIT METRICS

(in thousands)

Q1 2026

Q1 2025

$ Variance

% Variance

At-risk servicing portfolio ⁽¹⁾

$

69,444,656

$

64,450,319

$

4,994,337

8

%

Maximum exposure to at-risk portfolio ⁽²⁾

14,221,298

13,200,846

1,020,452

8

Defaulted loans⁽³⁾

$

167,456

$

108,530

$

58,926

54

%

Key credit metrics (as a % of the at-risk portfolio):

Defaulted loans

0.24

%

0.17

%

Allowance for risk-sharing

0.06

0.05

Key credit metrics (as a % of maximum exposure):

Allowance for risk-sharing

0.27

%

0.24

%

______________________________

(1)

At-risk servicing portfolio is defined as the balance of Fannie Mae Delegated Underwriting and Servicing (“DUS”) loans subject to the risk-sharing formula described below, as well as a small number of Freddie Mac loans on which we share in the risk of loss. Use of the at-risk portfolio provides for comparability of the full risk-sharing and modified risk-sharing loans because the provision and allowance for risk-sharing obligations are based on the at-risk balances of the associated loans. Accordingly, we have presented the key statistics as a percentage of the at-risk portfolio.

For example, a $15 million loan with 50% risk-sharing has the same potential risk exposure as a $7.5 million loan with full DUS risk sharing. Accordingly, if the $15 million loan with 50% risk-sharing were to default, we would view the overall loss as a percentage of the at-risk balance, or $7.5 million, to ensure comparability between all risk-sharing obligations. To date, substantially all of the risk-sharing obligations that we have settled have been from full risk-sharing loans.

(2)

Represents the maximum loss we would incur under our risk-sharing obligations if all of the loans we service, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. The maximum exposure is not representative of the actual loss we would incur.

(3)

Defaulted loans represent loans in our Fannie Mae at-risk portfolio or Freddie Mac small balance pre-securitized loans (“SBL”) portfolio that are probable of foreclosure or that have foreclosed and for which we have recorded a collateral-based reserve (i.e., loans where we have assessed a probable loss). Other loans that are delinquent but not foreclosed or that are not probable of foreclosure are not included here. Additionally, loans that have foreclosed or are probable of foreclosure but are not expected to result in a loss to us are not included here.

DISCUSSION OF KEY CREDIT METRICS:

Our at-risk servicing portfolio, which is comprised of loans subject to a defined risk-sharing formula, increased primarily due to the level of Fannie Mae loans added to the portfolio during the past 12 months. We take credit risk exclusively on loans backed by multifamily assets and have no credit exposure to losses in any other sector of the commercial real estate lending market.

As of March 31, 2026, 14 at-risk loans were in default with an aggregate unpaid principal balance (“UPB”) of $167.5 million, compared to 14 loans with an aggregate UPB of $158.8 million at December 31, 2025, and eight loans with an aggregate UPB of $108.5 million as of March 31, 2025. The collateral-based reserves on defaulted loans were $13.3 million and $7.5 million as of March 31, 2026 and 2025, respectively. The approximately 3,200 remaining loans in the at-risk servicing portfolio continue to exhibit strong credit quality, with low levels of delinquencies and strong operating performance of the underlying properties in the portfolio.

We recorded a provision for credit losses of $4.1 million in the first quarter of 2026, primarily related to initial loss reserves for loans that defaulted during the quarter. Of this amount, $2.5 million was associated with loans that we indemnified in the fourth quarter of 2025.

INDEMNIFIED AND REPURCHASED LOANS

(in thousands)

March 31, 2026

December 31, 2025

Other Assets

Loans held for investment:

Indemnified loans

$

91,241

$

46,253

Repurchased loans

41,556

36,926

Allowance for loan losses

(29,077

)

(5,410

)

Loans held for investment, net

$

103,720

$

77,769

Other real estate owned (“OREO”) ⁽¹⁾

13,218

14,756

Other asset, net ⁽¹⁾

24,124

24,124

Total other assets related to indemnified and repurchased loans

$

141,062

$

116,649

Other Liabilities

Secured borrowings

$

128,697

$

83,402

Indemnification reserves ⁽²⁾

7,961

23,920

Total other liabilities related to indemnified and repurchased loans

$

136,658

$

107,322

(in thousands)

Q1 2026

Q1 2025

Initial loan repurchase costs

$

797

$

322

Indemnified and repurchased loan operating costs

2,314

535

Expected principal losses on loan repurchase (“loan repurchase losses”)

6,950

—

Indemnified and repurchased loan expenses

$

10,061

$

857

Provision (benefit) for loan losses ⁽³⁾

$

2,500

$

—

Other operating expenses ⁽⁴⁾

1,538

—

Other interest income ⁽⁵⁾

(1,074

)

—

Total net expense impact of indemnified and repurchased loans

$

13,025

$

857

______________________________

(1)

The OREO asset and other asset, net are held for sale as of March 31, 2026 and are presented as components of Other assets on the Condensed Consolidated Balance Sheets.

(2)

Refer to NOTE 2 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for more information about the nature of these reserves.

(3)

Included as a component of Provision (benefit) for credit losses in the Condensed Consolidated Statements of Income.

(4)

Impairment charges related to an OREO asset that was previously repurchased and included as a component of Other operating expenses in the Condensed Consolidated Statements of Income.

(5)

Included as a component of Placement fees and other interest income in the Condensed Consolidated Statements of Income.

DISCUSSION OF INDEMNIFIED AND REPURCHASED LOANS:

We continue to execute on our plan to reduce exposure to repurchased loans, with total repurchased loans declining to $191.9 million at March 31, 2026, compared to $221.6 million at December 31, 2025.

In the second quarter, we entered into an indemnification agreement for a $34.3 million portfolio of loans without the requirement to repurchase the portfolio, reducing our potential repurchase exposure. The portfolio has performed well since origination, and the matters leading to the indemnification are not indicative of underlying credit concerns. This reduction was partially offset by the repurchase of a loan with an outstanding UPB of $4.6 million.

We expect continued progress in reducing our exposure to repurchased loans through asset sales over time, which should lower related credit charges and operating costs as these assets are resolved.

FIRST QUARTER 2026

FINANCIAL RESULTS BY SEGMENT

Interest expense on corporate debt is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment’s use of that corporate debt. Income tax expense is determined at a consolidated corporate level and allocated to each segment proportionally based on each segment’s income before taxes, except for significant, one-time tax activities, which are allocated entirely to the segment impacted by the tax activity. The following details explain the changes in these expense items at a consolidated corporate level:

Interest expense on corporate debt, which pays a variable interest rate, decreased 4% year over year, to $14.9 million primarily due to lower average interest rates during the first quarter of 2026 compared to the first quarter of 2025.

Income tax expense increased $5.5 million, or 218% year over year, primarily driven by a 395% increase in income before taxes during the first quarter of 2026 compared to the first quarter of 2025. Additionally, we recognized a higher balance of realizable tax shortfall. We recognized a $2.0 million shortfall during the first quarter of 2026, compared to a $1.3 million shortfall during the first quarter of 2025, resulting from changes between the grant date fair value and vesting date fair value of share-based compensation awards that vested during the first quarter of 2026. Absent the impact from tax shortfalls, income tax expense increased 394%, which is consistent with the growth in income before taxes.

FINANCIAL RESULTS – CAPITAL MARKETS

(in thousands)

Q1 2026

Q1 2025

$ Variance

% Variance

Origination fees

$

88,076

$

45,297

$

42,779

94

%

MSR income

46,773

27,811

18,962

68

Property sales broker fees

13,179

13,521

(342

)

(3

)

Net warehouse interest income (expense), loans held for sale

(266

)

(786

)

520

(66

)

Other revenues

14,679

16,727

(2,048

)

(12

)

Total revenues

$

162,441

$

102,570

$

59,871

58

%

Personnel

$

109,851

$

86,466

$

23,385

27

%

Amortization and depreciation

1,146

1,141

5

0

Interest expense on corporate debt

3,985

4,187

(202

)

(5

)

Other operating expenses

5,470

6,235

(765

)

(12

)

Total expenses

$

120,452

$

98,029

$

22,423

23

%

Income (loss) before taxes

$

41,989

$

4,541

$

37,448

825

%

Income tax expense (benefit)

12,980

2,181

10,799

495

Net income (loss) before temporary equity holders

$

29,009

$

2,360

$

26,649

1,129

%

Less: net income (loss) attributable to temporary equity holders

1,083

—

1,083

N/A

Walker & Dunlop net income (loss)

$

27,926

$

2,360

$

25,566

1,083

%

Key revenue metrics (as a percentage of debt financing volume):

Origination fee rate ⁽¹⁾

0.76

%

0.90

%

Agency MSR rate ⁽²⁾

0.91

1.13

Key performance metrics:

Operating margin

26

%

4

%

Adjusted EBITDA

$

3,915

$

(13,327

)

$

17,242

(129

)%

Diluted earnings (loss) per share

$

0.81

$

0.07

$

0.74

1,057

%

______________________________

(1)

Origination fees as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing.

(2)

MSR income as a percentage of Agency debt financing volume.

CAPITAL MARKETS – DISCUSSION OF QUARTERLY RESULTS:

The Capital Markets segment includes our Agency lending, debt brokerage, property sales, appraisal and valuation services, investment banking, and housing market research businesses.

Origination fees increased due to higher debt financing volume, partially offset by a decline in the origination fee rate. The lower fee rate was primarily driven by the origination of a $1.7 billion Freddie Mac portfolio in the first quarter of 2026 with no comparable activity in the prior year and a shift in volume mix towards brokered transactions. Portfolio transactions also generally have lower fee rates than non-portfolio transactions. Brokered transactions, which carry lower fee margins, represented 55% of total debt financing volume in the first quarter of 2026, compared to 49% in the first quarter of 2025.

MSR income increased due to higher debt financing volumes, partially offset by a decrease in the Agency MSR rate. The lower Agency MSR rate was primarily driven by a shift in Agency volume mix, including the $1.7 billion portfolio in the first quarter of 2026. Freddie Mac transactions, which carry lower servicing fees, represented 61% of Agency volume in the first quarter of 2026 compared to 33% in the first quarter of 2025, and portfolio transactions are also priced at lower servicing fees. A higher weighted average servicing fee on Fannie Mae volume partially offset the impact of the Agency volume mix and portfolio transaction.

Other revenues decreased due to lower investment banking revenues, partially offset by increases in application and appraisal revenues.

Personnel expense increased in the first quarter of 2026, primarily reflecting higher variable compensation associated with increased transaction volumes, as well as growth in salaries, benefits and subjective bonuses. Personnel expense declined to 68% of segment revenue from 84% last year, demonstrating the operating leverage and scalability of the platform as volumes increased.

The increase in adjusted EBITDA reflects higher origination fees, partially offset by increased personnel expenses.

FINANCIAL RESULTS – SERVICING & ASSET MANAGEMENT

(in thousands)

Q1 2026

Q1 2025

$ Variance

% Variance

Origination fees

$

456

$

1,084

$

(628

)

(58

)%

Servicing fees

85,437

82,221

3,216

4

Investment management fees

10,226

9,682

544

6

Net warehouse interest income, loans held for investment

291

—

291

N/A

Placement fees and other interest income

29,494

29,622

(128

)

(0

)

Other revenues

12,399

9,294

3,105

33

Total revenues

$

138,303

$

131,903

$

6,400

5

%

Personnel

$

19,123

$

19,546

$

(423

)

(2

)%

Amortization and depreciation

59,394

54,498

4,896

9

Provision (benefit) for credit losses

4,118

3,712

406

11

Interest expense on corporate debt

9,589

9,931

(342

)

(3

)

Indemnified and repurchased loan expenses

10,061

857

9,204

1,074

Other operating expenses

3,559

6,611

(3,052

)

(46

)

Total expenses

$

105,844

$

95,155

$

10,689

11

%

Income (loss) before taxes

$

32,459

$

36,748

$

(4,289

)

(12

)%

Income tax expense (benefit)

10,033

17,651

(7,618

)

(43

)

Net income (loss) before noncontrolling interests

$

22,426

$

19,097

$

3,329

17

%

Less: net income (loss) from noncontrolling interests

974

(29

)

1,003

(3,459

)

Walker & Dunlop net income (loss)

$

21,452

$

19,126

$

2,326

12

%

Key performance metrics:

Operating margin

23

%

28

%

Adjusted EBITDA

$

111,630

$

107,902

$

3,728

3

%

Diluted earnings (loss) per share

$

0.62

$

0.55

$

0.07

13

%

SERVICING & ASSET MANAGEMENT – DISCUSSION OF QUARTERLY RESULTS:

The Servicing & Asset Management segment includes loan servicing, principal lending and investing, management of third-party capital invested in tax credit equity funds focused on the affordable housing sector and other commercial real estate, and real estate-related investment banking and advisory services.

The servicing portfolio increased $10.7 billion over the past 12 months and was the principal driver of the growth in servicing fees year over year, partially offset by a decrease in the weighted average servicing fee across the portfolio.

Other revenues increased as a result of growth in prepayment fees and other LIHTC fees, partially offset by a decrease in income from equity-method investments. Prepayment fees increased as a result of higher prepayment activity driven by the interest rate environment and increased refinancing activity. LIHTC fees increased as a result of higher fee income and reimbursable fees from our LIHTC operations. Income from equity method investments decreased due to elevated performance from our equity method investments in 2025.

Amortization and depreciation increased due to the combination of higher recurring amortization of mortgage servicing rights and write-offs due to loan prepayments.

The increase in indemnified and repurchased loan expenses was primarily driven by the increase in loan repurchase losses coupled with an increase in repurchased loans operating costs as outlined in the Indemnified and Repurchased Loans section above.

Other operating expenses decreased largely due to a true up to the estimate of losses of certain affordable assets that we sold in the first quarter of 2026, with no comparable activity in the prior year.

FINANCIAL RESULTS – CORPORATE

(in thousands)

Q1 2026

Q1 2025

$ Variance

% Variance

Other interest income

$

3,210

$

3,589

$

(379

)

(11

)%

Other revenues

(2,623

)

(695

)

(1,928

)

277

Total revenues

$

587

$

2,894

$

(2,307

)

(80

)%

Personnel

$

23,855

$

15,378

$

8,477

55

%

Amortization and depreciation

2,424

1,982

442

22

Interest expense on corporate debt

1,328

1,396

(68

)

(5

)

Other operating expenses

21,478

20,183

1,295

6

Total expenses

$

49,085

$

38,939

$

10,146

26

%

Income (loss) before taxes

$

(48,498

)

$

(36,045

)

$

(12,453

)

35

%

Income tax expense (benefit)

(14,991

)

(17,313

)

2,322

(13

)

Walker & Dunlop net income (loss)

$

(33,507

)

$

(18,732

)

$

(14,775

)

79

%

Key performance metric:

Adjusted EBITDA

$

(41,763

)

$

(29,609

)

$

(12,154

)

41

%

Diluted earnings (loss) per share

$

(0.97

)

$

(0.54

)

$

(0.43

)

80

%

CORPORATE – DISCUSSION OF QUARTERLY RESULTS:

The Corporate segment consists of corporate-level activities including accounting, information technology, legal, human resources, marketing, internal audit, and various other corporate groups (“support functions”). The Company does not allocate costs from these support functions to its other segments in presenting segment operating results.

The decrease in other revenues was primarily due to lower income from equity-method investments.

Personnel expenses increased due to higher salaries and benefits associated with a 9% increase in average segment headcount to support growth in transaction activity, as well as higher subjective bonus accruals reflecting improved financial performance year over year.

CAPITAL SOURCES AND USES

On May 6, 2026, the Company’s Board of Directors declared a dividend of $0.68 per share for the second quarter of 2026. The dividend will be paid on June 4, 2026, to all holders of record of the Company’s restricted and unrestricted common stock as of May 21, 2026.

On February 13, 2026, our Board of Directors authorized the repurchase of up to $75.0 million of the Company’s outstanding common stock over a 12-month period starting from February 26, 2026 (the “2026 Stock Repurchase Program”). During the first quarter of 2026, the Company repurchased 283 thousand shares under the 2026 Stock Repurchase Program at a weighted-average price of $47.13 per share and immediately retired the shares, reducing stockholders’ equity by $13.3 million. As of March 31, 2026, the Company had $61.7 million of authorized share repurchase capacity remaining under the 2026 Stock Repurchase Program.

Any repurchases made pursuant to the 2026 Stock Repurchase Program will be made in the open market or in privately negotiated transactions, from time to time, as permitted by federal securities laws and other legal requirements. The timing, manner, price and amount of any repurchases will be determined by the Company in its discretion and will be subject to economic and market conditions, stock price, applicable legal requirements and other factors. The repurchase program may be suspended or discontinued at any time.

CONFERENCE CALL INFORMATION

Listeners can access the Company’s quarterly conference call for more information regarding our financial results via the dial-in number and webcast link below. Presentation materials related to the conference call will be posted to the Investor Relations section of the Company’s website prior to the call. An audio replay will also be available on the Investor Relations section of the Company’s website, along with the presentation materials.

Earnings Call:

Thursday, May 7, 2026, at 8:30 a.m. EDT

Phone:

(800) 330-6710from within the United States; (312) 471-1353 from outside the United States

Confirmation Code:

7877733

Webcast Link:

https://event.webcasts.com/starthere.jsp?ei=1752006&tp_key=c5facb3699

ABOUT WALKER & DUNLOP

Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.

NON-GAAP FINANCIAL MEASURES

To supplement our financial statements presented in accordance with United States generally accepted accounting principles (“GAAP”), the Company uses adjusted EBITDA, adjusted core net income, and adjusted core EPS, which are non-GAAP financial measures. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. When analyzing our operating performance, readers should use adjusted EBITDA, adjusted core net income, and adjusted core EPS in addition to, and not as an alternative for, net income and diluted EPS.

Adjusted core net income and adjusted core EPS represent net income adjusted for amortization and depreciation, provision (benefit) for credit losses, net write-offs based on the final resolution of the defaulted loans or collateral, the fair value of expected net cash flows from servicing, net of guaranty obligation, the income statement impact from periodic revaluation and accretion associated with contingent consideration liabilities related to acquired companies, goodwill impairment, loan repurchase losses and other adjustments. Adjusted EBITDA represents net income before income taxes, interest expense on our corporate debt, and amortization and depreciation, adjusted for provision (benefit) for credit losses, net write-offs based on the final resolution of the defaulted loans or collateral, loan repurchase losses, stock-based compensation, the fair value of expected net cash flows from servicing, net of guaranty obligation, the write-off of the unamortized balance of deferred issuance costs associated with the repayment of a portion of our corporate debt, goodwill impairment, and contingent consideration liability fair value adjustments when the fair value adjustment is a triggering event for a goodwill impairment assessment. Furthermore, adjusted EBITDA is not intended to be a measure of free cash flow for our management’s discretionary use, as it does not reflect certain cash requirements such as tax and debt service payments. The amounts shown for adjusted EBITDA may also differ from the amounts calculated under similarly titled definitions in our debt instruments, which are further adjusted to reflect certain other cash and non-cash charges that are used to determine compliance with financial covenants. Because not all companies use identical calculations, our presentation of adjusted EBITDA, adjusted core net income and adjusted core EPS may not be comparable to similarly titled measures of other companies.

We use adjusted EBITDA, adjusted core net income, and adjusted core EPS to evaluate the operating performance of our business, for comparison with forecasts and strategic plans and for benchmarking performance externally against competitors. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financial information, provide useful information to investors by offering:

the ability to make more meaningful period-to-period comparisons of the Company’s on-going operating results;

the ability to better identify trends in the Company’s underlying business and perform related trend analyses; and

a better understanding of how management plans and measures the Company’s underlying business.

We believe that these non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP and that these non-GAAP financial measures should only be used to evaluate the Company’s results of operations in conjunction with the Company’s GAAP financial information. For more information on adjusted EBITDA, adjusted core net income, and adjusted core EPS, refer to the section of this press release below titled “Adjusted Financial Measure Reconciliation to GAAP” and “Adjusted Financial Measure Reconciliation to GAAP By Segment.”

FORWARD-LOOKING STATEMENTS

Some of the statements contained in this press release may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans, or intentions. The forward-looking statements contained in this press release reflect our current views about future events and are subject to numerous known and unknown risks, uncertainties, assumptions and changes in circumstances that may cause actual results to differ significantly from those expressed or contemplated in any forward-looking statement.

While forward-looking statements reflect our good faith projections, assumptions and expectations, they are not guarantees of future results. Furthermore, we disclaim any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Factors that could cause our results to differ materially include, but are not limited to: (1) general economic conditions and multifamily and commercial real estate market conditions, (2) changes in interest rates, (3) regulatory and/or legislative changes to Freddie Mac, Fannie Mae or HUD, (4) our ability to retain and attract loan originators and other professionals, (5) success of our various investments funded with corporate capital, (6) changes in federal government fiscal and monetary policies, including any constraints or cuts in federal funds allocated to HUD for loan originations, and (7) our obligations to repurchase or indemnify the GSEs for loans we originate under their programs, including additional charges or losses related to loans we have already repurchased or indemnified and new repurchase requests we may receive from the GSEs related to the previously identified instances of borrower fraud, additional instances of borrower fraud, or other reasons.

For a further discussion of these and other factors that could cause future results to differ materially from those expressed or contemplated in any forward-looking statements, see the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and any updates or supplements in subsequent Quarterly Reports on Form 10-Q and our other filings with the SEC. Such filings are available publicly on our Investor Relations web page at www.walkerdunlop.com.

Walker & Dunlop, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

Unaudited

March 31,

December 31,

September 30,

June 30,

March 31,

(in thousands)

2026

2025

2025

2025

2025

Assets

Cash and cash equivalents

$

192,527

$

299,315

$

274,828

$

233,712

$

180,971

Restricted cash

34,419

22,772

44,462

41,090

32,268

Pledged securities, at fair value

228,646

224,954

221,730

218,435

214,374

Loans held for sale, at fair value

2,546,860

1,436,350

2,197,739

1,177,837

946,372

Mortgage servicing rights

795,754

808,145

805,975

817,814

825,761

Goodwill

868,710

868,710

868,710

868,710

868,710

Other intangible assets

138,123

141,877

145,631

149,385

153,139

Receivables, net

424,393

419,358

374,316

360,646

372,689

Committed investments in tax credit equity

265,368

241,401

257,564

194,479

337,510

Other assets

670,660

596,596

606,320

612,932

580,084

Total assets

$

6,165,460

$

5,059,478

$

5,797,275

$

4,675,040

$

4,511,878

Liabilities

Warehouse notes payable

$

2,535,227

$

1,420,272

$

2,175,157

$

1,157,234

$

931,002

Corporate notes payable

825,816

829,218

829,909

828,657

825,556

Allowance for risk-sharing obligations

38,673

37,546

34,140

33,191

31,871

Commitments to fund investments in tax credit equity

256,121

219,949

223,788

168,863

295,052

Other liabilities

775,837

806,631

756,815

725,297

684,308

Total liabilities

$

4,431,674

$

3,313,616

$

4,019,809

$

2,913,242

$

2,767,789

Temporary Equity

Profit interests of a wholly owned subsidiary subject to possible redemption

$

752

$

(1,036

)

$

—

$

—

$

—

Stockholders’ Equity

Common stock

$

332

$

334

$

333

$

333

$

333

Additional paid-in capital

454,215

450,434

444,127

438,129

432,788

Accumulated other comprehensive income (loss)

1,203

1,876

1,833

2,764

1,295

Retained earnings

1,264,446

1,282,390

1,319,274

1,308,792

1,297,764

Total stockholders’ equity

$

1,720,196

$

1,735,034

$

1,765,567

$

1,750,018

$

1,732,180

Noncontrolling interests

12,838

11,864

11,899

11,780

11,909

Total permanent equity

$

1,733,034

$

1,746,898

$

1,777,466

$

1,761,798

$

1,744,089

Commitments and contingencies

—

—

—

—

—

Total liabilities, temporary equity, and permanent equity

$

6,165,460

$

5,059,478

$

5,797,275

$

4,675,040

$

4,511,878

Walker & Dunlop, Inc. and Subsidiaries

Condensed Consolidated Statements of Income and Comprehensive Income

Unaudited

Quarterly Trends

(in thousands, except per share amounts)

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Revenues

Origination fees

$

88,532

$

103,614

$

97,845

$

94,309

$

46,381

MSR income

46,773

50,060

48,657

53,153

27,811

Servicing fees

85,437

86,339

85,189

83,693

82,221

Property sales broker fees

13,179

28,488

26,546

14,964

13,521

Investment management fees

10,226

11,192

6,178

7,577

9,682

Net warehouse interest income (expense)

25

(909

)

(2,035

)

(1,760

)

(786

)

Placement fees and other interest income

32,704

37,085

46,302

35,986

33,211

Other revenues

24,455

24,155

28,993

31,318

25,326

Total revenues

$

301,331

$

340,024

$

337,675

$

319,240

$

237,367

Expenses

Personnel

$

152,829

$

187,113

$

177,418

$

161,888

$

121,390

Amortization and depreciation

62,964

62,084

60,041

58,936

57,621

Provision (benefit) for credit losses

4,118

3,105

949

1,820

3,712

Interest expense on corporate debt

14,902

15,983

16,451

16,767

15,514

Indemnified and repurchased loan expenses

10,061

35,784

3,526

683

857

Other operating expenses

30,507

54,512

33,353

32,772

33,029

Total expenses

$

275,381

$

358,581

$

291,738

$

272,866

$

232,123

Income (loss) before taxes

$

25,950

$

(18,557

)

$

45,937

$

46,374

$

5,244

Income tax expense (benefit)

8,022

(5,447

)

12,516

12,425

2,519

Net income (loss) before noncontrolling interests and temporary equity holders

$

17,928

$

(13,110

)

$

33,421

$

33,949

$

2,725

Less: net income (loss) from noncontrolling interests

974

(36

)

(31

)

(3

)

(29

)

Less: net income (loss) attributable to temporary equity holders

1,083

837

—

—

—

Walker & Dunlop net income (loss)

$

15,871

$

(13,911

)

$

33,452

$

33,952

$

2,754

Other comprehensive income (loss), net of tax

(673

)

43

(931

)

1,469

709

Walker & Dunlop comprehensive income (loss)

$

15,198

$

(13,868

)

$

32,521

$

35,421

$

3,463

Effective Tax Rate

31

%

29

%

27

%

27

%

48

%

Basic earnings (loss) per share

$

0.46

$

(0.41

)

$

0.98

$

1.00

$

0.08

Diluted earnings (loss) per share

0.46

(0.41

)

0.98

0.99

0.08

Cash dividends paid per common share

0.68

0.67

0.67

0.67

0.67

Basic weighted-average shares outstanding

33,394

33,388

33,376

33,358

33,264

Diluted weighted-average shares outstanding

33,411

33,410

33,397

33,371

33,296

SUPPLEMENTAL OPERATING DATA

Unaudited

Quarterly Trends

(in thousands, except per share data and unless otherwise noted)

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Transaction Volume:

Components of Debt Financing Volume

Fannie Mae

$

1,553,899

$

2,785,231

$

2,141,092

$

3,114,308

$

1,511,794

Freddie Mac

3,124,128

2,023,592

3,664,380

1,752,597

808,247

Ginnie Mae – HUD

481,384

153,748

325,169

288,449

148,158

Brokered ⁽¹⁾

6,503,051

8,675,937

4,512,729

6,335,071

2,552,943

Principal Lending and Investing ⁽²⁾

87,900

167,700

199,250

147,800

175,500

Total Debt Financing Volume

$

11,750,362

$

13,806,208

$

10,842,620

$

11,638,225

$

5,196,642

Property Sales Volume

1,910,300

4,524,142

4,672,875

2,313,585

1,839,290

Total Transaction Volume

$

13,660,662

$

18,330,350

$

15,515,495

$

13,951,810

$

7,035,932

Key Performance Metrics:

Operating margin

9

%

(5

)%

14

%

15

%

2

%

Return on equity

4

(3

)

8

8

1

Walker & Dunlop net income (loss)

$

15,871

$

(13,911

)

$

33,452

$

33,952

$

2,754

Adjusted EBITDA ⁽³⁾

73,782

38,755

82,084

76,811

64,966

Diluted earnings (loss) per share

0.46

(0.41

)

0.98

0.99

0.08

Adjusted core EPS ⁽⁴⁾

1.02

0.28

1.22

1.15

0.85

Key Expense Metrics (as a percentage of total revenues):

Personnel expense

51

%

55

%

53

%

51

%

51

%

Other operating expenses

10

16

10

10

14

Key Revenue Metrics (as a percentage of debt financing volume):

Origination fee rate ⁽⁵⁾

0.76

%

0.75

%

0.90

%

0.82

%

0.90

%

Agency MSR rate ⁽⁶⁾

0.91

1.01

0.79

1.03

1.13

Other Data:

Market capitalization at period end

$

1,522,458

$

2,048,798

$

2,847,907

$

2,395,939

$

2,901,726

Closing share price at period end

$

44.38

$

60.15

$

83.62

$

70.48

$

85.36

Average headcount

1,471

1,464

1,438

1,400

1,394

Components of Servicing Portfolio (end of period):

Fannie Mae

$

73,498,820

$

72,708,372

$

71,006,342

$

70,042,909

$

69,176,839

Freddie Mac

44,836,263

42,595,441

40,473,401

39,433,013

38,556,682

Ginnie Mae – HUD

11,646,914

11,563,020

11,298,108

11,008,314

10,882,857

Brokered ⁽⁷⁾

16,385,040

17,111,320

16,553,827

16,864,888

17,032,338

Principal Lending and Investing ⁽⁸⁾

17,500

—

—

—

—

Total Servicing Portfolio

$

146,384,537

$

143,978,153

$

139,331,678

$

137,349,124

$

135,648,716

Assets under management ⁽⁹⁾

18,530,780

18,631,100

18,521,907

18,623,451

18,518,413

Total Managed Portfolio

$

164,915,317

$

162,609,253

$

157,853,585

$

155,972,575

$

154,167,129

Key Servicing Portfolio Metrics (end of period):

Custodial escrow account deposits (in billions)

$

2.5

$

3.1

$

2.8

$

2.7

$

2.4

Weighted-average servicing fee rate (basis points)

23.4

23.6

24.0

24.1

24.4

Weighted-average remaining servicing portfolio term (years)

7.1

7.2

7.4

7.4

7.5

______________________________

(1)

Brokered transactions for life insurance companies, commercial banks, and other capital sources.

(2)

Includes debt financing volumes from our interim lending platform and WDIP separate accounts.

(3)

This is a non-GAAP financial measure. For more information on adjusted EBITDA, refer to the section above titled “Non-GAAP Financial Measures.”

(4)

This is a non-GAAP financial measure. For more information on adjusted core EPS, refer to the section above titled “Non-GAAP Financial Measures.”

(5)

Origination fees as a percentage of debt financing volume. Excludes the income and debt financing volume from Principal Lending and Investing.

(6)

MSR income as a percentage of Agency debt financing volume.

(7)

Brokered loans serviced primarily for life insurance companies.

(8)

Consists of interim loans not managed for our interim loan joint venture.

(9)

Walker & Dunlop Affordable Equity assets under management, commercial real estate loans and funds managed by WDIP, and interim loans serviced for our interim loan joint venture.

KEY CREDIT METRICS

Unaudited

March 31,

December 31,

September 30,

June 30,

March 31,

(dollars in thousands)

2026

2025

2025

2025

2025

Risk-sharing servicing portfolio:

Fannie Mae Full Risk

$

65,886,235

$

65,087,136

$

63,382,256

$

61,486,070

$

60,493,946

Fannie Mae Modified Risk

7,612,585

7,621,236

7,624,086

8,556,839

8,682,893

Freddie Mac Modified Risk

15,000

15,000

10,000

10,000

15,000

Total risk-sharing servicing portfolio

$

73,513,820

$

72,723,372

$

71,016,342

$

70,052,909

$

69,191,839

Non-risk-sharing servicing portfolio:

Freddie Mac No Risk

$

44,821,263

$

42,580,441

$

40,463,401

$

39,423,013

$

38,541,682

GNMA – HUD No Risk

11,646,914

11,563,020

11,298,108

11,008,314

10,882,857

Brokered

16,385,040

17,111,320

16,553,827

16,864,888

17,032,338

Total non-risk-sharing servicing portfolio

$

72,853,217

$

71,254,781

$

68,315,336

$

67,296,215

$

66,456,877

Total loans serviced for others

$

146,367,037

$

143,978,153

$

139,331,678

$

137,349,124

$

135,648,716

Loans held for investment (full risk)

$

56,203

$

36,926

$

36,926

$

36,926

$

36,926

Indemnification reserves

7,961

23,920

2,000

—

5,527

Interim Loan Joint Venture Managed Loans ⁽¹⁾

17,099

32,965

76,215

76,215

173,315

At-risk servicing portfolio ⁽²⁾

$

69,444,656

$

68,649,960

$

66,946,180

$

65,378,944

$

64,450,319

Maximum exposure to at-risk portfolio ⁽³⁾

14,221,298

14,052,667

13,704,585

13,382,410

13,200,846

Defaulted loans ⁽⁴⁾

167,456

158,821

139,020

108,530

108,530

Defaulted loans as a percentage of the at-risk portfolio

0.24

%

0.23

%

0.21

%

0.17

%

0.17

%

Allowance for risk-sharing as a percentage of the at-risk portfolio

0.06

0.05

0.05

0.05

0.05

Allowance for risk-sharing as a percentage of maximum exposure

0.27

0.26

0.25

0.25

0.24

______________________________

(1)

This balance consisted entirely of Interim Program JV managed loans. We indirectly share in a portion of the risk of loss associated with Interim Program JV managed loans through our 15% equity ownership in the Interim Program JV. We have no exposure to risk of loss for the loans serviced directly for the Interim Program JV partner. The balance of this line is included as a component of assets under management in the Supplemental Operating Data table above.

(2)

At-risk servicing portfolio is defined as the balance of Fannie Mae DUS loans subject to the risk-sharing formula described below, as well as a small number of Freddie Mac loans on which we share in the risk of loss. Use of the at-risk portfolio provides for comparability of the full risk-sharing and modified risk-sharing loans because the provision and allowance for risk-sharing obligations are based on the at-risk balances of the associated loans. Accordingly, we have presented the key statistics as a percentage of the at-risk portfolio.

For example, a $15 million loan with 50% risk-sharing has the same potential risk exposure as a $7.5 million loan with full DUS risk sharing. Accordingly, if the $15 million loan with 50% risk-sharing were to default, we would view the overall loss as a percentage of the at-risk balance, or $7.5 million, to ensure comparability between all risk-sharing obligations. To date, substantially all of the risk-sharing obligations that we have settled have been from full risk-sharing loans.

(3)

Represents the maximum loss we would incur under our risk-sharing obligations if all of the loans we service, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement. The maximum exposure is not representative of the actual loss we would incur.

(4)

Defaulted loans represent loans in our Fannie Mae at-risk portfolio or Freddie Mac SBL pre-securitized portfolio that are probable of foreclosure or that have foreclosed and for which we have recorded a collateral-based reserve (i.e. loans where we have assessed a probable loss). Other loans that are delinquent but not foreclosed or that are not probable of foreclosure are not included here. Additionally, loans that have foreclosed or are probable of foreclosure but are not expected to result in a loss to us are not included here.

ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP

Unaudited

Quarterly Trends

(in thousands)

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Reconciliation of Walker & Dunlop Net Income to Adjusted EBITDA

Walker & Dunlop Net Income (Loss)

$

15,871

$

(13,911

)

$

33,452

$

33,952

$

2,754

Income tax expense (benefit)

8,022

(5,447

)

12,516

12,425

2,519

Interest expense on corporate debt

14,902

15,983

16,451

16,767

15,514

Amortization and depreciation

62,964

62,084

60,041

58,936

57,621

Provision (benefit) for credit losses

4,118

3,105

949

1,820

3,712

Loan repurchase losses ⁽¹⁾

6,950

20,092

—

—

—

Net write-offs

(491

)

—

—

—

—

Stock-based compensation expense

8,219

6,909

7,332

6,064

6,442

Write-off of unamortized issuance costs from corporate debt paydown ⁽²⁾

—

—

—

—

4,215

MSR income

(46,773

)

(50,060

)

(48,657

)

(53,153

)

(27,811

)

Adjusted EBITDA

$

73,782

$

38,755

$

82,084

$

76,811

$

64,966

______________________________

(1)

Presented as a component of Indemnified and repurchased loan expenses on the Condensed Consolidated Statements of Income.

(2)

Presented as a component of Other operating expenses on the Condensed Consolidated Statements of Income.

ADJUSTED FINANCIAL MEASURE RECONCILIATION TO GAAP BY SEGMENT

Unaudited

Capital Markets

Three months ended

March 31,

(in thousands)

2026

2025

Reconciliation of Walker & Dunlop Net Income (Loss) to Adjusted EBITDA

Walker & Dunlop Net Income (Loss)

$

27,926

$

2,360

Income tax expense (benefit)

12,980

2,181

Interest expense on corporate debt

3,985

4,187

Amortization and depreciation

1,146

1,141

Stock-based compensation expense

4,651

3,351

Write-off of unamortized issuance costs from corporate debt paydown ⁽¹⁾

—

1,264

MSR income

(46,773

)

(27,811

)

Adjusted EBITDA

$

3,915

$

(13,327

)

Servicing & Asset Management

Three months ended

March 31,

(in thousands)

2026

2025

Reconciliation of Walker & Dunlop Net Income (Loss) to Adjusted EBITDA

Walker & Dunlop Net Income (Loss)

$

21,452

$

19,126

Income tax expense (benefit)

10,033

17,651

Interest expense on corporate debt

9,589

9,931

Amortization and depreciation

59,394

54,498

Provision (benefit) for credit losses

4,118

3,712

Loan repurchase losses ⁽²⁾

6,950

—

Net write-offs

(491

)

—

Stock-based compensation expense

585

455

Write-off of unamortized issuance costs from corporate debt paydown ⁽¹⁾

—

2,529

Adjusted EBITDA

$

111,630

$

107,902

Corporate

Three months ended

March 31,

(in thousands)

2026

2025

Reconciliation of Walker & Dunlop Net Income (Loss) to Adjusted EBITDA

Walker & Dunlop Net Income (Loss)

$

(33,507

)

$

(18,732

)

Income tax expense (benefit)

(14,991

)

(17,313

)

Interest expense on corporate debt

1,328

1,396

Amortization and depreciation

2,424

1,982

Stock-based compensation expense

2,983

2,636

Write-off of unamortized issuance costs from corporate debt paydown ⁽¹⁾

—

422

Adjusted EBITDA

$

(41,763

)

$

(29,609

)

______________________________

(1)

Presented as a component of Other operating expenses on the Condensed Consolidated Statements of Income.

(2)

Presented as a component of Indemnified and repurchased loan expenses on the Condensed Consolidated Statements of Income.

ADJUSTED CORE EPS RECONCILIATION

Unaudited

Quarterly Trends

(in thousands)

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Reconciliation of Walker & Dunlop Net Income (Loss) to Adjusted Core Net Income

Walker & Dunlop Net Income (Loss)

$

15,871

$

(13,911

)

$

33,452

$

33,952

$

2,754

Provision (benefit) for credit losses

4,118

3,105

949

1,820

3,712

Loan repurchase losses ⁽¹⁾

6,950

20,092

—

—

—

Net write-offs

(491

)

—

—

—

—

Amortization and depreciation

62,964

62,084

60,041

58,936

57,621

MSR income

(46,773

)

(50,060

)

(48,657

)

(53,153

)

(27,811

)

Contingent consideration accretion and fair value adjustments

(299

)

(8,226

)

18

41

40

Write-off of unamortized issuance costs from corporate debt paydown ⁽²⁾

—

—

—

—

4,215

Income tax expense adjustment ⁽³⁾

(6,908

)

(3,662

)

(3,856

)

(2,429

)

(11,355

)

Adjusted Core Net Income

$

35,432

$

9,422

$

41,947

$

39,167

$

29,176

Reconciliation of Diluted EPS to Adjusted core EPS

Walker & Dunlop Net Income (Loss)

$

15,871

$

(13,911

)

$

33,452

$

33,952

$

2,754

Diluted weighted-average shares outstanding

33,411

33,410

33,397

33,371

33,296

Diluted earnings (loss) per share

$

0.46

$

(0.41

)

$

0.98

$

0.99

$

0.08

Adjusted Core Net Income

$

35,432

$

9,422

$

41,947

$

39,167

$

29,176

Diluted weighted-average shares outstanding

33,411

33,410

33,397

33,371

33,296

Adjusted core EPS

$

1.02

$

0.28

$

1.22

$

1.15

$

0.85

______________________________

(1)

Presented as a component of Indemnified and repurchased loan expenses on the Condensed Consolidated Statements of Income.

(2)

Presented as a component of Other operating expenses on the Condensed Consolidated Statements of Income.

(3)

Income tax impact of the above adjustments to adjusted core net income. Uses (i) quarterly effective tax rate as disclosed in the Condensed Consolidated Statements of Income in this press release or (ii) estimated annual effective rate.

Category: Earnings

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507890775/en/

Headquarters:

7272 Wisconsin Avenue, Suite 1300

Bethesda, Maryland 20814

Phone 301.215.5500

[email protected]

Investors:

Kelsey Duffey

Senior Vice President, Investor Relations

Phone 301.202.3207

[email protected]

Media:

Carol McNerney

Chief Marketing Officer

Phone 301.215.5515

[email protected]

KEYWORDS: Maryland United States North America

INDUSTRY KEYWORDS: Commercial Building & Real Estate Construction & Property Finance Consulting REIT Professional Services Building Systems Other Construction & Property Residential Building & Real Estate

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