Market Newsdesk

August 5, 2025 5:59 pm

Hudson Pacific Properties Reports Second Quarter 2025 Financial Results

Hudson Pacific Properties Reports Second Quarter 2025 Financial Results

– 1.2 Million Sq Ft Leased in 1H25, including 558,000 Signed in 2Q –

– $1.0 Billion of Liquidity at Quarter End –

– $13.5 Million of Recurring G&A, 35% Improved Over Last Year –

– Provides 3Q FFO Outlook and Updates Full-Year Assumptions –

LOS ANGELES–(BUSINESS WIRE)–Hudson Pacific Properties, Inc. (NYSE: HPP) (the “Company,” “Hudson Pacific,” or “HPP”), a unique provider of end-to-end real estate solutions for dynamic tech and media tenants,today announced financial results for the second quarter 2025.

Victor Coleman, Hudson Pacific’s CEO and Chairman, commented, “We are energized that one of our key initiatives, leasing our high-quality west coast portfolio located in key primary markets, produced 1.2 million square feet of office leases signed in the first half of the year. We have a robust pipeline in excess of 2.0 million square feet, and significantly lower expirations going forward. Portfolio stabilization is close, which will enable us to begin to grow office occupancy as we move ahead.

“Importantly, we are continuing to benefit from the ongoing west coast focused investments into AI, as both new companies and industry leaders are adding office space in many of our core markets. Additionally, we are starting to experience positive traction in our studio business as total and stage leased percentages for in-service studios increased to 74.3% and 80.0%, respectively, excluding our studio development Sunset Glenoaks.

“With a capital structure that now provides $1.0 billion of liquidity, along with emerging growth drivers from AI and a media industry that is finally beginning to ramp production, we are poised to capture additional value and drive cash flow. We appreciate that this will take time, but we are confident in our team’s ability to strengthen Hudson Pacific’s position as a preeminent owner of west coast office and studio real estate.”

Financial Results Compared to Second Quarter 2024

Total revenue of $190.0 million compared to $218.0 million, primarily due to asset sales and lower office occupancy

General and administrative expenses of $13.5 million (excluding $14.3 million of one-time expenses associated with the cancellation of non-cash compensation agreements) compared to $20.7 million

Net loss attributable to common stockholders of $(83.1) million, or $(0.41) per diluted share, compared to net loss of $(47.0) million, or $(0.33) per diluted share, largely attributable to items affecting revenue, as well as accelerated depreciation resulting from Quixote lease terminations and disposal of obsolete fleet

FFO, excluding specified items, of $8.0 million, or $0.04 per diluted share, compared to $24.5 million, or $0.17 per diluted share, mostly attributable to the items affecting revenue. Specified items consisted of the one-time cancellation of non-cash compensation agreements of $14.3 million, or $0.07 per diluted share; one-time expenses associated with early debt repayment of $3.2 million, or $0.02 per diluted share; one-time Quixote cost-cutting expenses of $1.2 million, or $0.01 per diluted share; and transaction-related expenses of $0.5 million, or $0.00 per diluted share. Specified items for the second quarter of 2024 consisted of transaction-related income of $0.1 million, or $0.00 per diluted share; and a one-time derivative fair value adjustment of $1.3 million, or $0.01 per diluted share

FFO of $(11.2) million, or $(0.05) per diluted share, compared to $23.3 million, or $0.16 per diluted share

AFFO of $(6.1) million, or $(0.03) per diluted share, compared to $24.2 million, or $0.17 per diluted share, primarily the result of items affecting FFO along with increased recurring capital expenditures

Same-store cash NOI of $87.1 million, compared to $104.1 million, primarily due to lower office occupancy

Leasing

Executed 72 new and renewal leases totaling 558,055 square feet, including:

77,000-square-foot renewal lease with a cybersecurity company at Metro Center with a 6-year term

65,000-square-foot new lease with a mining company at Bentall Centre with an approximately 4-year term

41,000-square-foot renewal and expansion lease with a digital sports company at 11601 Wilshire with an approximately 9-year term

36,000-square-foot new lease with a gaming company at Bentall Centre with an approximately 13-year term

32,000-square-foot new lease with a bio-tech company at Page Mill Hill with an approximately 6-year term

GAAP and cash rents increased 4.9% and decreased 1.8%, respectively, from prior levels

In-service office portfolio ended the quarter at 75.1% occupied and 76.2% leased, compared to 75.1% occupied and 76.5% leased in the first quarter this year

In-service studio portfolio and stages were 63.0% and 63.6% leased, respectively, over the trailing 12-months, compared to 73.8% and 78.7% for the same metrics as of the first quarter this year. Excluding studio development Sunset Glenoaks (which contributed to the in-service trailing 12-month results for the first time this quarter), total and stage leased percentages would have increased to 74.3% and 80.0%, respectively

Transactions

Sold office property 625 Second in San Francisco for $28.0 million before prorations and closing costs, with net proceeds used to repay amounts outstanding on the unsecured revolving credit facility

Balance Sheet as of June 30, 2025

Repaid all private placement notes (Series B, C, and D) totaling $465.0 million, addressing significant maturities in 2025, 2026 and 2027

Raised $690.0 million of gross proceeds through a common equity offering with net proceeds used to fully repay the unsecured revolving credit facility and for general corporate purposes

Secured commitments to increase capacity under the unsecured revolving credit facility by $20.0 million to $795.0 million through December 2026 (including extensions), and to extend $462.0 million of capacity through December 2029 (including extensions)

$1.0 billion of total liquidity comprised of $236.0 million of unrestricted cash and cash equivalents and $775.0 million of undrawn capacity under the unsecured revolving credit facility

$87.4 million, or $22.3 million at HPP’s share, of undrawn capacity under the construction loan secured by Sunset Pier 94 Studios

HPP’s share of net debt to HPP’s share of undepreciated book value was 31.3% with 99.2% of debt fixed or capped with weighted average interest rate of 5.0% and no maturities until December 2025

Dividend

The Company’s Board of Directors declared and paid a dividend on its 4.750% Series C cumulative preferred stock of $0.296875 per share

2025 Outlook

Hudson Pacific is providing an FFO outlook for the third quarter of $0.01 to $0.05 per diluted share along with updated full-year assumptions (see table below). There are no specified items in connection with this outlook. Third quarter FFO outlook assumes fully diluted weighted average common stock/units of approximately 456.75 million.

This outlook reflects management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of events referenced in this press release and in earlier announcements. This outlook otherwise excludes any impact from new acquisitions, dispositions, debt financings, amendments or repayments, recapitalizations, capital markets activity or similar matters. There can be no assurance that actual results will not differ materially from these estimates.

Below are some of the assumptions the Company used in providing this outlook:

Unaudited, in thousands, except share data

Full Year 2025

Assumptions

Metric

Low

High

Growth in same-store property cash NOI⁽¹⁾⁽²⁾

(12.50)%

(11.50)%

GAAP non-cash revenue (straight-line rent and above/below-market rents)⁽³⁾

$5,500

$10,500

GAAP non-cash expense (straight-line rent expense and above/below-market ground rent)

$(6,500)

$(8,500)

General and administrative expenses⁽⁴⁾

$(57,500)

$(63,500)

Interest expense⁽⁵⁾

$(168,000)

$(178,000)

Non-real estate depreciation and amortization

$(33,000)

$(35,000)

FFO from unconsolidated joint ventures

$600

$2,600

FFO attributable to non-controlling interests

$(13,000)

$(17,000)

FFO attributable to preferred units/shares

$(21,000)

$(21,000)

Weighted average common stock/units outstanding—diluted⁽⁶⁾

319,000,000

321,000,000

(1)

Same-store for the full year 2025 is defined as the 39 office properties and three studio properties, as applicable, owned and included in the Company’s stabilized portfolio as of January 1, 2024, and anticipated to still be owned and included in the stabilized portfolio through December 31, 2025. Beginning this quarter, Metro Center is included within the same-store office properties. Same-store property cash NOI growth outlook would have been in-line with last quarter at (12.50)% to (13.50)% without Metro Center.

(2)

Please see non-GAAP information below for definition of cash NOI.

(3)

Includes non-cash straight-line rent associated with the studio and office properties.

(4)

Includes share/unit-based compensation expense, which the Company estimates at $16,000 in 2025. General and administrative expenses and the share/unit-based compensation exclude the impact of the one-time voluntary cancellation of non-cash compensation agreements of $14,280.

(5)

Includes non-cash interest expense, which the Company estimates at $8,500 in 2025. Interest expense excludes the one-time expenses associated with early repayment of indebtedness of $3,213.

(6)

Diluted shares represent ownership in the Company through shares of common stock, OP Units and other convertible or exchangeable instruments. The weighted average fully diluted common stock/units outstanding for 2025 includes an estimate for the dilution impact of stock grants to the Company’s executives under its long-term incentive programs. This estimate is based on the projected award potential of such programs as of the end of the most recently completed quarter, as calculated in accordance with the ASC 260, Earnings Per Share.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, acquisition costs and other non-core items that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Supplemental Information

Supplemental financial information regarding Hudson Pacific’s second quarter 2025 results may be found on the Investors section of the Company’s website at HudsonPacificProperties.com. This supplemental information provides additional detail on items such as property occupancy, financial performance by property and debt maturity schedules.

Conference Call

The Company will hold a conference call to discuss second quarter 2025 financial results at 2:00 p.m. PT / 5:00 p.m. ET on August 5, 2025. The conference call will be available via live audio webcast on the Investors section of the Company’s website at HudsonPacificProperties.com. A replay of the audio webcast will also be available following the call.

About Hudson Pacific Properties

Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific’s unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space. For more information visit HudsonPacificProperties.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future 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 that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the Company from time to time with the SEC.

(FINANCIAL TABLES FOLLOW)

Consolidated Balance Sheets

In thousands, except share data

6/30/25

12/31/24

(Unaudited)

ASSETS

Investment in real estate, at cost

$

8,211,478

$

8,233,286

Accumulated depreciation and amortization

(1,895,060

)

(1,791,108

)

Investment in real estate, net

6,316,418

6,442,178

Non-real estate property, plant and equipment, net

129,253

127,067

Cash and cash equivalents

236,025

63,256

Restricted cash

31,102

35,921

Accounts receivable, net

13,454

14,505

Straight-line rent receivables, net

204,031

199,748

Deferred leasing costs and intangible assets, net

351,278

327,514

Operating lease right-of-use assets

347,698

370,826

Prepaid expenses and other assets, net

97,479

90,114

Investment in unconsolidated real estate entities

242,785

221,468

Goodwill

156,529

156,529

Assets associated with real estate held for sale

—

83,113

TOTAL ASSETS

$

8,126,052

$

8,132,239

LIABILITIES AND EQUITY

Liabilities

Unsecured and secured debt, net

$

3,690,429

$

4,176,844

Joint venture partner debt

66,136

66,136

Accounts payable, accrued liabilities and other

222,645

193,861

Operating lease liabilities

358,528

380,004

Intangible liabilities, net

19,790

21,838

Security deposits, prepaid rent and other

83,408

84,708

Liabilities associated with real estate held for sale

—

31,117

Total liabilities

4,440,936

4,954,508

Redeemable preferred units of the operating partnership

5,894

9,815

Redeemable non-controlling interest in consolidated real estate entities

48,890

49,279

Equity

HPP stockholders’ equity:

4.750% Series C cumulative redeemable preferred stock, $0.01 par value, $25.00 per share liquidation preference, 18,400,000 authorized; 17,000,000 shares outstanding at 6/30/25 and 12/31/24

425,000

425,000

Common stock, $0.01 par value, 722,400,000 authorized and 379,150,864 shares outstanding at 6/30/25; 481,600,000 authorized and 141,279,102 shares outstanding at 12/31/24

3,779

1,403

Additional paid-in capital

2,935,476

2,437,484

Accumulated other comprehensive income (loss)

2,160

(8,417

)

Total HPP stockholders’ equity

3,366,415

2,855,470

Non-controlling interest—members in consolidated real estate entities

153,574

169,452

Non-controlling interest—units in the operating partnership

110,343

93,715

Total equity

3,630,332

3,118,637

TOTAL LIABILITIES AND EQUITY

$

8,126,052

$

8,132,239

Consolidated Statements of Operations

Unaudited, in thousands, except per share data

Three Months Ended

Six Months Ended

6/30/25

6/30/24

6/30/25

6/30/24

REVENUES

Office

Rental revenues

$

150,533

$

172,596

$

308,926

$

344,023

Service and other revenues

5,300

3,443

12,118

7,091

Total office revenues

155,833

176,039

321,044

351,114

Studio

Rental revenues

13,889

14,441

27,541

28,041

Service and other revenues

20,280

27,520

39,876

52,868

Total studio revenues

34,169

41,961

67,417

80,909

Total revenues

190,002

218,000

388,461

432,023

OPERATING EXPENSES

Office operating expenses

71,501

75,304

143,778

148,251

Studio operating expenses

36,552

37,952

77,533

75,061

General and administrative

27,776

20,705

46,259

40,415

Depreciation and amortization

94,751

86,798

187,836

178,652

Total operating expenses

230,580

220,759

455,406

442,379

OTHER (EXPENSES) INCOME

Loss from unconsolidated real estate entities

(205

)

(2,481

)

(1,459

)

(3,224

)

Fee income

1,476

1,371

2,835

2,496

Interest expense

(48,137

)

(44,159

)

(91,642

)

(88,248

)

Interest income

2,123

579

2,558

1,433

Management services reimbursement income—unconsolidated real estate entities

1,123

1,042

2,098

2,198

Management services expense—unconsolidated real estate entities

(1,123

)

(1,042

)

(2,098

)

(2,198

)

Transaction-related expenses

(451

)

113

(451

)

(2,037

)

Unrealized gain (loss) on non-real estate investments

212

(1,045

)

(237

)

(1,943

)

(Loss) gain on sale of real estate, net

(16

)

—

10,007

Impairment loss

—

—

(18,476

)

—

Loss on extinguishment of debt

(1,637

)

—

(3,495

)

—

Other (expense) income

(93

)

1,334

(85

)

1,477

Total other expenses

(46,728

)

(44,288

)

(100,445

)

(90,046

)

Loss before income tax provision

(87,306

)

(47,047

)

(167,390

)

(100,402

)

Income tax provision

(454

)

(510

)

(648

)

(510

)

Net loss

(87,760

)

(47,557

)

(168,038

)

(100,912

)

Net income attributable to Series A preferred units

(121

)

(153

)

(267

)

(306

)

Net income attributable to Series C preferred shares

(5,047

)

(5,047

)

(10,094

)

(10,094

)

Net income attributable to participating securities

—

(207

)

—

(409

)

Net loss attributable to non-controlling interest in consolidated real estate entities

6,675

3,751

14,142

7,920

Net loss attributable to redeemable non-controlling interest in consolidated real estate entities

895

961

1,797

2,118

Net loss attributable to common units in the operating partnership

2,209

1,225

4,603

2,454

NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(83,149

)

$

(47,027

)

$

(157,857

)

$

(99,229

)

BASIC AND DILUTED PER SHARE AMOUNTS

Net loss attributable to common stockholders—basic

$

(0.41

)

$

(0.33

)

$

(0.92

)

$

(0.70

)

Net loss attributable to common stockholders—diluted

$

(0.41

)

$

(0.33

)

$

(0.92

)

$

(0.70

)

Weighted average shares of common stock outstanding—basic

202,666

141,181

172,196

141,152

Weighted average shares of common stock outstanding—diluted

202,666

141,181

172,196

141,152

Funds from Operations⁽¹⁾

Unaudited, in thousands, except per share data

Three Months Ended

Six Months Ended

6/30/25

6/30/24

6/30/25

6/30/24

RECONCILIATION OF NET LOSS TO FUNDS FROM OPERATIONS (“FFO”)⁽¹⁾:

Net loss

$

(87,760

)

$

(47,557

)

$

(168,038

)

$

(100,912

)

Adjustments:

Depreciation and amortization—consolidated

94,751

86,798

187,836

178,652

Depreciation and amortization—non-real estate assets

(8,785

)

(8,211

)

(18,434

)

(16,192

)

Depreciation and amortization—HPP’s share from unconsolidated real estate entities⁽²⁾

1,113

2,006

2,158

3,157

Loss (gain) on sale of real estate, net

16

—

(10,007

)

—

Impairment loss—real estate assets

—

—

18,476

—

Unrealized (gain) loss on non-real estate investments

(212

)

1,045

237

1,943

FFO attributable to non-controlling interests

(5,152

)

(5,576

)

(10,005

)

(10,996

)

FFO attributable to preferred shares and units

(5,168

)

(5,200

)

(10,361

)

(10,400

)

FFO to common stock/unit holders

(11,197

)

23,305

(8,138

)

45,252

Specified items impacting FFO:

Transaction-related expenses

451

(113

)

451

2,037

Forfeiture of non-cash compensation agreements

14,280

—

14,280

—

One-time termination of Quixote leases (cost-cutting initiatives)

622

—

6,487

—

Write-off of transportation assets (cost-cutting initiatives)

626

—

626

—

One-time termination of Quixote non-compete agreement (cost-cutting initiatives)

—

—

1,402

—

One-time expenses associated with early repayment of debt

3,213

—

5,071

—

Non-cash revaluation associated with a loan swap (unqualified for hedge accounting)

—

1,310

682

1,310

FFO (excluding specified items) to common stock/unit holders

$

7,995

$

24,502

$

20,861

$

48,599

Weighted average common stock/units outstanding—diluted

208,411

145,657

340,837

145,647

FFO per common stock/unit—diluted

$

(0.05

)

$

0.16

$

(0.02

)

$

0.31

FFO (excluding specified items) per common stock/unit—diluted

$

0.04

$

0.17

$

0.06

$

0.33

(1)

We calculate Funds from Operations (“FFO”) in accordance with the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts. The White Paper defines FFO as net income or loss calculated in accordance with generally accepted accounting principles in the United States (“GAAP”), excluding gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus the HPP’s share of real estate-related depreciation and amortization, excluding amortization of deferred financing costs and depreciation of non-real estate assets. The calculation of FFO includes the HPP’s share of amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets.

FFO is a non-GAAP financial measure we believe is a useful supplemental measure of our operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of our activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, our FFO may not be comparable to all other REITs.

Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets, we believe that FFO along with the required GAAP presentations provides a more complete measurement of our performance relative to our competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide. We use FFO per share to calculate annual cash bonuses for certain employees.

However, FFO should not be viewed as an alternative measure of our operating performance because it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs and could materially impact our results from operations.

(2)

HPP’s share is a Non-GAAP financial measure calculated as the measure on a consolidated basis, in accordance with GAAP, plus our Operating Partnership’s share of the measure from our unconsolidated joint ventures (calculated based upon the Operating Partnership’s percentage ownership interest), minus our partners’ share of the measure from our consolidated joint ventures (calculated based upon the partners’ percentage ownership interests). We believe that presenting HPP’s share of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because we have several significant joint ventures, and in some cases, we exercise significant influence over, but do not control, the joint venture. In such instances, GAAP requires us to account for the joint venture entity using the equity method of accounting, which we do not consolidate for financial reporting purposes. In other cases, GAAP requires us to consolidate the venture even though our partner(s) own(s) a significant percentage interest.

Adjusted Funds from Operations⁽¹⁾

Unaudited, in thousands, except per share data

Three Months Ended

Six Months Ended

6/30/25

6/30/24

6/30/25

6/30/24

FFO (excluding specified items)

$

7,995

$

24,502

$

20,861

$

48,599

Adjustments:

GAAP non-cash revenue (straight-line rent and above/below-market rents)

(3,704

)

(118

)

(4,375

)

1,900

GAAP non-cash expense (straight-line rent expense and above/below-market ground rent)

1,788

1,638

3,492

3,304

Non-real estate depreciation and amortization

8,159

8,211

16,406

16,192

Non-cash interest expense

5,065

1,764

9,174

3,610

Share/unit-based compensation expense

3,584

6,889

8,699

13,421

Recurring capital expenditures, tenant improvements and lease commissions

(28,957

)

(18,645

)

(58,615

)

(34,388

)

AFFO

$

(6,070

)

$

24,241

$

(4,358

)

$

52,638

Weighted average common stock/units outstanding—diluted

208,411

145,657

340,837

145,647

AFFO per common stock/unit—diluted

$

(0.03

)

$

0.17

$

(0.01

)

$

0.36

(1)

Adjusted Funds from Operations (“AFFO”) is a non-GAAP financial measure we believe is a useful supplemental measure of our performance. We compute AFFO by adding to FFO (excluding specified items) HPP’s share of non-cash compensation expense and amortization of deferred financing costs, and subtracting recurring capital expenditures related to HPP’s share of tenant improvements and leasing commissions (excluding pre-existing obligations on contributed or acquired properties funded with amounts received in settlement of prorations), and eliminating the net effect of HPP’s share of straight-line rents, amortization of lease buy-out costs, amortization of above- and below-market lease intangible assets and liabilities, amortization of above- and below-market ground lease intangible assets and liabilities and amortization of loan discounts/premiums. AFFO is not intended to represent cash flow for the period. We believe that AFFO provides useful information to the investment community about our financial position as compared to other REITs since AFFO is a widely reported measure used by other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not be comparable to other REITs.

Net Operating Income⁽¹⁾

Unaudited, in thousands

Three Months Ended

6/30/25

6/30/24

RECONCILIATION OF NET LOSS TO NET OPERATING INCOME (“NOI”) AND SAME-STORE CASH NET OPERATING INCOME (“NOI”)

Net loss

$

(87,760

)

$

(47,557

)

Adjustments:

Loss from unconsolidated real estate entities

205

2,481

Fee income

(1,476

)

(1,371

)

Interest expense

48,137

44,159

Interest income

(2,123

)

(579

)

Management services reimbursement income—unconsolidated real estate entities

(1,123

)

(1,042

)

Management services expense—unconsolidated real estate entities

1,123

1,042

Transaction-related expenses

451

(113

)

Unrealized (gain) loss on non-real estate investments

(212

)

1,045

Loss on sale of real estate, net

16

—

Loss on extinguishment of debt

1,637

—

Other expense (income)

93

(1,334

)

Income tax provision

454

510

General and administrative

27,776

20,705

Depreciation and amortization

94,751

86,798

NOI

$

81,949

$

104,744

Straight-line rent, net

(2,633

)

1,147

Share/unit-based compensation expense

243

62

Amortization of above/below-market leases, net

(1,016

)

(1,284

)

Amortization of lease incentive costs

1,393

361

Amortization of above/below-market ground leases, net

651

662

Cash NOI

80,587

105,692

Less: Non-same-store cash NOI

(6,509

)

1,572

Same-store cash NOI

$

87,096

$

104,120

NOI Detail

Same-store office cash revenues

152,152

166,762

Straight-line rent

3,837

531

Amortization of above/below-market leases, net

1,016

1,147

Amortization of lease incentive costs

(1,384

)

(261

)

Same-store office revenues

155,621

168,179

Same-store studios cash revenues

15,525

20,186

Straight-line rent

111

109

Amortization of lease incentive costs

(9

)

(9

)

Same-store studio revenues

15,627

20,286

Same-store revenues

171,248

188,465

Same-store office cash expenses

70,107

70,288

Straight-line rent

367

371

Share/unit-based compensation expense

12

15

Amortization of above/below-market ground leases, net

641

641

Same-store office expenses

71,127

71,315

Same-store studio cash expenses

10,474

12,540

Share/unit-based compensation expense

113

40

Same-store studio expenses

10,587

12,580

Same-store expenses

81,714

83,895

Same-store NOI

89,534

104,570

Non-same-store NOI

(7,585

)

174

NOI

$

81,949

$

104,744

(1)

We evaluate performance based upon property Net Operating Income (“NOI”) from continuing operations. NOI is not a measure of operating results or cash flows from operating activities or cash flows as measured by GAAP and should not be considered an alternative to income from continuing operations, as an indication of our performance, or as an alternative to cash flows as a measure of liquidity, or our ability to make distributions. All companies may not calculate NOI in the same manner. We consider NOI to be a useful performance measure to investors and management because when compared across periods, NOI reflects the revenues and expenses directly associated with owning and operating our properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing a perspective not immediately apparent from income from continuing operations. We calculate NOI as net income (loss) excluding corporate general and administrative expenses, depreciation and amortization, impairments, gains/losses on sales of real estate, interest expense, transaction-related expenses and other non-operating items. We define NOI as operating revenues (rental revenues, other property-related revenue, tenant recoveries and other operating revenues), less property-level operating expenses (external management fees, if any, and property-level general and administrative expenses). NOI on a cash basis is NOI adjusted to exclude the effect of straight-line rent and other non-cash adjustments required by GAAP. We believe that NOI on a cash basis is helpful to investors as an additional measure of operating performance because it eliminates straight-line rent and other non-cash adjustments to revenue and expenses.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250805313129/en/

Investor Contact

Laura Campbell

Executive Vice President, Investor Relations & Marketing

(310) 622-1702

[email protected]

Media Contact

Laura Murray

Vice President, Communications

(310) 622-1781

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Commercial Building & Real Estate Construction & Property REIT

MEDIA:

Logo

Posted on August 5, 2025 5:59 pm
Clover Health Reports Second Quarter 2025 Results; Delivering Strong Sustainable Growth

Second quarter 2025 Medicare Advantage membership of 106,323, up 32% year-over-year

Second quarter 2025 Total revenues of $478 million, up 34% year-over-year

Second quarter 2025 profitability metrics with GAAP Net loss of $11 million, Adjusted EBITDA of $17 million, and Adjusted Net income of $17 million

Updates Full Year 2025 Guidance:

Increases Average Medicare Advantage membership to 104,000 – 108,000, representing 32% growth year-over-year at the midpoint

Maintains Insurance revenue between $1.800 billion and $1.875 billion, representing 37% growth year-over-year at the midpoint

Improves Adjusted SG&A to between $335 million and $345 million, representing Adjusted SG&A as a percentage of Total revenues between 18% – 19%

Maintains Adjusted EBITDA profitability between $50 million and $70 million

Maintains Adjusted Net income between $50 million and $70 million

Expects Insurance BER now between 88.5% – 89.5%

WILMINGTON, Del., Aug. 05, 2025 (GLOBE NEWSWIRE) — Clover Health Investments, Corp. (Nasdaq: CLOV) (“Clover,” “Clover Health” or the “Company”), today reported financial results for the second quarter 2025. Management will host a conference call today at 5:00 p.m. ET to discuss its operating results and other business highlights.

“Our performance further demonstrates how our technology-first model drives better care management, above-market growth, and sustained profitability,” said Clover Health CEO Andrew Toy. “By leading with affordability, choice, and AI-driven clinical recommendations, we have achieved strong Medicare Advantage results this year to date, and importantly, better health outcomes for our members. Our recently published clinical whitepaper on chronic obstructive pulmonary disease (COPD) shows that a relationship with a provider using Clover Assistant technology was correlated with fewer hospitalizations (15% lower) and readmissions (18% lower).”

“Our second quarter 2025 results reflect significant membership and revenue growth, along with sustained Adjusted Net income and Adjusted EBITDA profitability,” said Clover Health CFO Peter Kuipers. “We are executing our growth strategy well, and have generated significant momentum in our business this year during a 3.5 Star payment year. We believe this positions us well to achieve our updated 2025 guidance and expect it to further accelerate our growth and profitability in 2026, which is a 4 Star payment year.”

Key Company highlights are as follows:

Dollars in Millions
2Q25 2Q24 Change (%)

Insurance revenue $ 469.8 $ 349.9 34.3 %

Total revenues 477.6 356.3 34.0 %

Insurance net medical claims incurred 394.2 249.4 58.1 %

Salaries and benefits plus General and administrative expenses (“SG&A”) 109.8 99.9 9.9 %

Adjusted Salaries and benefits plus General and administrative expenses (“Adjusted SG&A”) ⁽¹⁾ 82.5 71.7 15.1 %

Adjusted SG&A as a % of Total revenues 17.3 % 20.1 % (280 bps)

Net (loss) income from continuing operations $ (10.6 ) $ 7.2 N/A*

Adjusted Net income from continuing operations ⁽¹⁾⁽²⁾ 16.7 35.9 (53.5 )%

Adjusted EBITDA ⁽¹⁾ 17.1 36.2 (52.8 )%

Average Medicare Advantage membership ⁽⁵⁾ 105,494 80,016 31.8 %

Insurance BER ⁽³⁾ 88.4 % 76.1 % (1,230 bps)

Total cash, cash equivalents, and investments $ 389.3 $ 482.8 (19.4 )%

__________________________

^*Not presented as a % change because the current or prior period amount is zero or the amount for the line item changed from a gain to a loss (or vice versa) and thus yields a result that is not meaningful.
¹ Adjusted SG&A (Non-GAAP), Adjusted EBITDA (Non-GAAP), and Adjusted Net income from continuing operations (Non-GAAP) are Non-GAAP financial measures. Reconciliations of Adjusted SG&A (Non-GAAP) to SG&A, Adjusted EBITDA (Non-GAAP) to Net (loss) income from continuing operations, and Adjusted Net income from continuing operations (Non-GAAP) to Net loss from continuing operations, respectively, the most directly comparable GAAP measures, are provided in the tables immediately following the consolidated financial statements below. Additional information about the Company’s Non-GAAP financial measures can be found under the caption “About Non-GAAP Financial Measures” below and in Appendix A.
² Adjusted Net income from continuing operations is a Non-GAAP financial measure. A reconciliation of Adjusted Net income from continuing operations to Net (loss) income from continuing operations, the most directly comparable GAAP measure, is provided in a table immediately following the consolidated financial statements below. Additional information about the Company’s Non-GAAP financial measures can be found under the caption “About Non-GAAP Financial Measures” below and in Appendix A. In the fourth quarter of 2024, the Company began presenting Adjusted Net income from continuing operations. Management believes that Adjusted Net income from continuing operations is helpful to investors in understanding and evaluating our operating performance and trends, as well as in assessing the Company’s financial performance in the same manner as our management and our board of directors.
³ Insurance Benefits Expense Ratio (“BER”) is a Non-GAAP financial measure. A reconciliation of Insurance BER to Insurance Net medical claims incurred, net, the most directly comparable GAAP measure, is provided in a table immediately following the consolidated financial statements below. Additional information about the Company’s Non-GAAP financial measures can be found under the caption “About Non-GAAP Financial Measures” below and in Appendix A. In the second quarter of 2024, the Company began presenting Insurance BER. Management believes that by adding quality improvement expenses into the Insurance BER calculation, it offers a clearer and more accurate representation of our investment in healthcare quality and member engagement, and more fully captures the cost of maintaining and enhancing the quality of care for our members.
⁴ Reconciliations of projected Adjusted SG&A (Non-GAAP) to projected SG&A, projected Adjusted EBITDA (Non-GAAP) to Net income, and projected Adjusted Net income (Non-GAAP) to Net income, the most directly comparable GAAP measures, are not provided because Stock-based compensation, which is excluded from Adjusted SG&A (Non-GAAP), Adjusted EBITDA (Non-GAAP), and Adjusted Net income (Non-GAAP), cannot be reasonably calculated or predicted at this time without unreasonable efforts. A reconciliation of projected Insurance BER (Non-GAAP) to projected Net medical claims incurred, net, the most directly comparable GAAP measure, is not provided because quality improvements, which are included in Insurance BER (Non-GAAP), cannot be reasonably calculated or predicted at this time without unreasonable efforts. Additional information about the Company’s Non-GAAP financial measures can be found under the caption “About Non-GAAP Financial Measures” below and in Appendix A.
⁵ Average Medicare Advantage membership represents the average membership during the three months included in the second quarter of 2025.

Financial Guidance

For full-year 2025, Clover Health is updating its guidance as follows:

Current 2025 Guidance Previous 2025 Guidance

Insurance revenue $1.800 billion – $1.875 billion $1.800 billion – $1.875 billion

Adjusted SG&A ⁽⁴⁾ $335 million – $345 million $355 million – $365 million

Adjusted SG&A as a % of Total revenues 18% – 19% 19% – 20%

Adjusted EBITDA ⁽⁴⁾ $50 million – $70 million $50 million – $70 million

Adjusted Net income ⁽²⁾⁽⁴⁾ $50 million – $70 million $50 million – $70 million

Average Medicare Advantage membership 104,000 – 108,000 103,000 – 107,000

Insurance BER ⁽⁴⁾ 88.5% – 89.5% 87% – 88%

Lives under Clover Management

June 30, 2025 June 30, 2024

Insurance members 106,323 80,261

Earnings Conference Call Details

Clover Health’s management will host a conference call to discuss its financial results on Tuesday, August 5, 2025, at 5:00 PM Eastern Time. To access the call via telephone, please dial 800-245-3047 (for U.S. callers) or 203-518-9765 (for callers outside the U.S.) and enter the conference ID: CLOVQ225. A live audio webcast will also be available online at: https://event.on24.com/wcc/r/5004864/5729A47D06B46D779C215395F221D12A and related presentation materials will be available at Clover Health’s Investor Relations website at investors.cloverhealth.com. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link and at Clover Health’s Investor Relations website at investors.cloverhealth.com, and will remain available for approximately 12 months.

Upcoming Investor Events & Conferences

2025 Canaccord Genuity 45th Annual Growth Conference at 11:00 a.m. Eastern Time, Tuesday, August 12, 2025

Any live and archived webcasts and presentations associated with the conferences listed above may be accessed on Clover Health’s Investor Relations website at: investors.cloverhealth.com/news-and-events/investor-events-presentations.

Forward-Looking Statements

This press release contains 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. Forward-looking statements include statements regarding future events and Clover Health’s future results of operations, financial condition, market size and opportunity, business strategy and plans, and the factors affecting our performance and our objectives for future operations. Forward-looking statements are not guarantees of future performance and you are cautioned not to place undue reliance on such statements. In some cases, you can identify forward looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “going to,” “can,” “could,” “should,” “would,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “outlook,” “forecast,” “guidance,” “objective,” “plan,” “seek,” “grow,” “if,” “continue” or the negative of these words or other similar terms or expressions that concern Clover Health’s expectations, strategy, priorities, plans or intentions. Forward-looking statements in this press release include, but are not limited to, the following: statements under “Financial Guidance” and statements regarding expectations relating to potential improvements in revenues, operating expenses, Adjusted SG&A, Insurance BER, and the number of Clover Health’s Insurance members, as well as the statements contained in the quotations of our executive officers, and other expectations as to future performance, operations and results (including our guidance for full year 2025). Statements regarding our Adjusted EBITDA profitability and Adjusted Net income profitability are also forward-looking, and are based on our current targets which are preliminary and are derived from our 2025 financial guidance. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by forward-looking statements in this press release. Forward-looking statements involve a number of judgments, risks and uncertainties, including, without limitation, risks related to: our expectations regarding results of operations, financial condition, and cash flows; our expectations regarding the development and management of our business; any current, pending, or future legislation, regulations or policies that could have a negative effect on our revenue, profit margins, cash flows and business, including rules, regulations and policies relating to healthcare, Medicare generally and medical loss ratios; our ability to successfully enter new service markets and manage our operations; anticipated trends and challenges in our business and in the markets in which we operate; our ability to effectively manage our beneficiary base and provider network; our ability to maintain and increase adoption and use of Clover Assistant, including the expansion of Clover Assistant for external payors and providers under the brand name Counterpart Assistant; the anticipated benefits associated with the use of Clover Assistant, including our ability to utilize the platform to manage our medical expenses; our ability to maintain or improve our Star Ratings or otherwise continue to improve the financial performance of our business; our ability to develop new features and functionality that meet market needs and achieve market acceptance; our ability to retain and hire necessary employees and staff our operations appropriately; the timing and amount of certain investments in growth; the outcome of any known and unknown litigation and regulatory proceedings; our ability to maintain, protect, and enhance our intellectual property; general economic conditions and uncertainty; persistent high inflation and fluctuating interest rates; and geopolitical uncertainty and instability. Additional information concerning these and other risk factors is contained under Item 1A. “Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 3, 2025, as such risks may be updated in our subsequent filings with the SEC. The forward-looking statements included in this press release are made as of the date hereof. Except as required by law, Clover Health undertakes no obligation to update any of these forward-looking statements after the date of this press release or to conform these statements to actual results or revised expectations.

About Non-GAAP Financial Measures

We use Non-GAAP measures in this release, including Insurance BER, Adjusted EBITDA, Adjusted Net income from continuing operations, Adjusted SG&A and Adjusted SG&A as a percentage of Total revenues. These Non-GAAP financial measures are provided to enhance the reader’s understanding of Clover Health’s past financial performance and our prospects for the future. Clover Health’s management team uses these Non-GAAP financial measures in assessing Clover Health’s performance, as well as in planning and forecasting future periods. These Non-GAAP financial measures are not computed according to GAAP, and the methods we use to compute them may differ from the methods used by other companies. Non-GAAP financial measures are supplemental to and should not be considered a substitute for financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”) and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Readers are encouraged to review the reconciliations of these Non-GAAP financial measures to the comparable GAAP measures, which are attached to this release, together with other important financial information, including our filings with the SEC, on the Investor Relations page of our website at investors.cloverhealth.com.

For a description of these Non-GAAP financial measures, including the reasons management uses each measure, please see Appendix A: “Explanation of Non-GAAP Financial Measures.”

The statements contained in this document are solely those of the authors and do not necessarily reflect the views or policies of CMS. The authors assume responsibility for the accuracy and completeness of the information contained in this document.

About Clover Health:

Clover Health (Nasdaq: CLOV) is a physician enablement technology company committed to bringing access to great healthcare to everyone on Medicare. This includes a focus on seniors who have historically lacked access to affordable, high-quality healthcare. Our strategy is powered by our software platform, Clover Assistant, which is designed to aggregate patient data from across the healthcare ecosystem to support clinical decision-making and improve health outcomes through the early identification and management of chronic disease. For our members, we provide PPO and HMO Medicare Advantage plans in several states, with a differentiated focus on our flagship wide-network, high-choice PPO plans. For healthcare providers outside Clover Health’s Medicare Advantage plan, we extend the benefits of our data-driven technology platform to a wider audience via our subsidiary, Counterpart Health, and aim to enable enhanced patient outcomes and reduced healthcare costs on a nationwide scale. Clover Health has published data demonstrating the technology’s impact on Medication Adherence, Congestive Heart Failure, and Chronic Obstructive Pulmonary Disease as well as the earlier identification and management of Diabetes and Chronic Kidney Disease.

Visit: www.cloverhealth.com

Investor Relations Contact:

Ryan Schmidt
[email protected]

Press Inquiries:

[email protected]

CLOVER HEALTH INVESTMENTS, CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share amounts)

(unaudited)

June 30, 2025 December 31,
2024

Assets

Current assets

Cash and cash equivalents $ 188,648 $ 194,543

Investment securities, available-for-sale (Amortized cost: 2025: $11,161; 2024: $27,153) 10,856 26,997

Investment securities, held-to-maturity (Fair value: 2025: $1,766; 2024: $15) 1,768 15

Accrued retrospective premiums 84,454 41,253

Healthcare receivables 46,893 51,539

Prepaid expenses 15,252 13,174

Other assets, current 15,068 15,603

Total current assets 362,939 343,124

Investment securities, available-for-sale (Amortized cost: 2025: $174,988; 2024: $203,147) 175,470 201,719

Investment securities, held-to-maturity (Fair value: 2025: $12,370; 2024: $13,913) 12,526 14,343

Property and equipment, net 5,201 5,307

Other intangible assets 2,990 2,990

Other assets, non-current 15,861 13,259

Total assets $ 574,987 $ 580,742

Liabilities and Stockholders’ Equity

Current liabilities

Unpaid claims $ 139,660 $ 156,396

Accounts payable and accrued expenses 33,951 34,564

Accrued salaries and benefits 25,184 19,090

Other liabilities, current 3,153 3,466

Total current liabilities 201,948 213,516

Other liabilities, non-current 28,860 26,083

Total liabilities 230,808 239,599

Commitments and Contingencies

Stockholders’ equity

Class A Common Stock, $0.0001 par value; 2,500,000,000 shares authorized at June 30, 2025 and December 31, 2024; 418,386,775 and 414,493,051 issued and outstanding at June 30, 2025 and December 31, 2024, respectively 42 41

Class B Common Stock, $0.0001 par value; 500,000,000 shares authorized at June 30, 2025 and December 31, 2024; 92,375,003 and 89,032,305 issued and outstanding at June 30, 2025 and December 31, 2024, respectively 9 9

Additional paid-in capital 2,630,021 2,576,471

Accumulated other comprehensive income (loss) 177 (1,584 )

Accumulated deficit (2,214,655 ) (2,202,803 )

Less: Treasury stock, at cost; 28,132,383 and 18,752,947 shares held at June 30, 2025 and December 31, 2024, respectively (71,415 ) (30,991 )

Total stockholders’ equity 344,179 341,143

Total liabilities and stockholders’ equity $ 574,987 $ 580,742

CLOVER HEALTH INVESTMENTS, CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Dollars in thousands, except per share and share amounts)

(unaudited)

Three Months Ended

June 30, Six Months Ended

June 30,

2025
2024 2025
2024

Revenues:

Premiums earned, net (Net of ceded premiums of $96 and $102 for the three months ended June 30, 2025 and 2024 respectively, and $192 and $203 for the six months ended June 30, 2025 and 2024, respectively.) $ 469,826 $ 349,900 $ 926,732 $ 691,622

Other income 7,794 6,360 13,219 11,560

Total revenues 477,620 356,260 939,951 703,182

Operating expenses:

Net medical claims incurred 377,992 248,347 731,434 513,509

Salaries and benefits 61,309 55,499 120,331 114,722

General and administrative expenses 48,484 44,424 99,159 88,993

Depreciation and amortization 394 330 860 648

Restructuring costs — 473 — 826

Total operating expenses 488,179 349,073 951,784 718,698

(Loss) income from continuing operations (10,559 ) 7,187 (11,833 ) (15,516 )

Change in fair value of warrants 19 17 19 17

Loss on investment — — — 467

Net (loss) income from continuing operations (10,578 ) 7,170 (11,852 ) (16,000 )

Net income from discontinued operations — 238 — 4,238

Net (loss) income $ (10,578 ) $ 7,408 $ (11,852 ) $ (11,762 )

Per share data:

Basic weighted average number of class A and class B common shares and common share equivalents outstanding 509,043,210 487,483,087 508,893,753 487,575,520

Diluted weighted average number of class A and class B common shares and common share equivalents outstanding 509,043,210 495,179,955 508,893,753 487,575,520

Continuing operations:

Basic (loss) earnings per share $ (0.02 ) $ 0.01 $ (0.02 ) $ (0.03 )

Diluted (loss) earnings per share $ (0.02 ) $ 0.01 $ (0.02 ) $ (0.03 )

Discontinued operations:

Basic earnings per share $ — $ — $ — $ 0.01

Diluted earnings per share $ — $ — $ — $ 0.01

Net unrealized gain on available-for-sale investments 251 301 1,761 111

Comprehensive (loss) income $ (10,327 ) $ 7,709 $ (10,091 ) $ (11,651 )

CLOVER HEALTH INVESTMENTS, CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(unaudited)

Six Months Ended

June 30,

2025
2024

Cash flows from operating activities:

Net loss $ (11,852 ) $ (11,762 )

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Depreciation and amortization expense 860 648

Stock-based compensation 52,632 56,698

Change in fair value of warrants and amortization of warrants 19 17

Accretion, net of amortization (946 ) (1,618 )

Change in accrued interest earned 347 (463 )

Net realized gains on investment securities (437 ) (5 )

Loss on investment — 467

Changes in operating assets and liabilities:

Accrued retrospective premiums (43,201 ) (31,816 )

Prepaid expenses (2,078 ) (99 )

Other assets (2,084 ) (6,690 )

Healthcare receivables 4,646 (2,575 )

Unpaid claims (16,736 ) 63,450

Accounts payable and accrued expenses (613 ) 3,257

Accrued salaries and benefits 6,094 11,449

Other liabilities 2,464 (1,261 )

Net cash (used in) provided by operating activities from continuing operations (10,885 ) 79,697

Net cash used in operating activities from discontinued operations — (9,005 )

Net cash (used in) provided by operating activities (10,885 ) 70,692

Cash flows from investing activities:

Purchases of short-term investments, available-for-sale, and held-to-maturity securities (59,864 ) (51,670 )

Proceeds from sales of short-term investments and available-for-sale securities 79,313 —

Proceeds from maturities of short-term investments and available-for-sale securities 25,801 66,651

Purchases of property and equipment (754 ) (842 )

Net cash provided by investing activities 44,496 14,139

Cash flows from financing activities:

Issuance of common stock, net of early exercise liability 363 23

Issuance of common stock under employee stock purchase plan, net of stock issuance costs 555 —

Cash paid for shares withheld related to stock-based compensation (22,127 ) (4,805 )

Repurchases of common stock (18,297 ) (1,772 )

Net cash used in financing activities (39,506 ) (6,554 )

Net (decrease) increase in cash and cash equivalents (5,895 ) 78,277

Cash and cash equivalents, beginning of period 194,543 176,494

Cash and cash equivalents, end of period $ 188,648 $ 254,771

CLOVER HEALTH INVESTMENTS, CORP.

OPERATING SEGMENTS

(in thousands)

(unaudited)

Three Months Ended

June 30, Six Months Ended

June 30,

Insurance Segment 2025
2024 2025
2024

Premiums earned, net (net of ceded premiums) $ 469,826 $ 349,900 $ 926,732 $ 691,622

Less:

Net medical claims incurred 394,212 249,406 762,100 515,482

Salaries and benefits 60,309 54,508 118,639 112,836

General and administrative expenses 47,693 43,631 97,764 87,530

Segment net (loss) income $ (32,388 ) $ 2,355 $ (51,771 ) $ (24,226 )

CLOVER HEALTH INVESTMENTS, CORP.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED SG&A (NON-GAAP) RECONCILIATION

(in thousands) ⁽¹⁾

(unaudited)

Three Months Ended

June 30, Six Months Ended

June 30,

2025 2024 2025 2024

Salaries and benefits $ 61,309 $ 55,499 $ 120,331 $ 114,722

General and administrative expenses 48,484 44,424 99,159 88,993

Total SG&A (GAAP) 109,793 99,923 219,490 203,715

Adjustments

Stock-based compensation (26,195 ) (27,900 ) (52,632 ) (56,698 )

Non-recurring legal expenses and settlements (1,105 ) (319 ) (1,258 ) (373 )

Adjusted SG&A (Non-GAAP) $ 82,493 $ 71,704 $ 165,600 $ 146,644

Total revenues (GAAP) $ 477,620 $ 356,260 $ 939,951 $ 703,182

Adjusted SG&A (Non-GAAP) as a percentage of Total revenues 17.3 % 20.1 % 17.6 % 20.9 %

⁽¹⁾ The table above includes Non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these Non-GAAP measures, see Appendix A.

CLOVER HEALTH INVESTMENTS, CORP.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA (NON-GAAP) RECONCILIATION

(in thousands) ⁽¹⁾

(unaudited)

Three Months Ended

June 30, Six Months Ended

June 30,

2025
2024 2025
2024

Net (loss) income from continuing operations (GAAP): $ (10,578 ) $ 7,170 $ (11,852 ) $ (16,000 )

Adjustments

Depreciation and amortization 394 330 860 648

Change in fair value of warrants 19 17 19 17

Loss on investment — — — 467

Stock-based compensation 26,195 27,900 52,632 56,698

Restructuring costs — 473 — 826

Non-recurring legal expenses and settlements 1,105 319 1,258 373

Adjusted EBITDA (non-GAAP) $ 17,135 $ 36,209 $ 42,917 $ 43,029

⁽¹⁾ The table above includes Non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these Non-GAAP measures, see Appendix A.

CLOVER HEALTH INVESTMENTS, CORP.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

ADJUSTED NET INCOME FROM CONTINUING OPERATIONS (NON-GAAP) RECONCILIATION

(in thousands) ⁽¹⁾

(unaudited)

Three Months Ended

June 30, Six Months Ended

June 30,

2025
2024 2025
2024

Net (loss) income from continuing operations (GAAP) $ (10,578 ) $ 7,170 $ (11,852 ) $ (16,000 )

Adjustments

Stock-based compensation 26,195 27,900 52,632 56,698

Restructuring costs — 473 — 826

Non-recurring legal expenses and settlements 1,105 319 1,258 373

Adjusted Net income from continuing operations (non-GAAP) $ 16,722 $ 35,862 $ 42,038 $ 41,897

⁽¹⁾ The table above includes Non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these Non-GAAP measures, see Appendix A.

CLOVER HEALTH INVESTMENTS, CORP.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

INSURANCE BENEFITS EXPENSE RATIO (NON-GAAP) RECONCILIATION

(in thousands) ⁽¹⁾

(unaudited)

Three Months Ended

June 30, Six Months Ended

June 30,

2025
2024
2025
2024

Net medical claims incurred, net (GAAP): $ 394,212 $ 249,406 $ 762,100 $ 515,482

Adjustments

Quality improvements 21,191 16,733 46,903 34,938

Insurance benefits expense, net (Non-GAAP) $ 415,403 $ 266,139 $ 809,003 $ 550,420

Premiums earned, net (GAAP) $ 469,826 $ 349,900 $ 926,732 $ 691,622

Insurance BER, net (Non-GAAP) 88.4 % 76.1 % 87.3 % 79.6 %

⁽¹⁾ The table above includes Non-GAAP measures. Non-GAAP financial measures are supplemental and should not be considered a substitute for financial information presented in accordance with GAAP. For a detailed explanation of these Non-GAAP measures, see Appendix A.

CLOVER HEALTH INVESTMENTS, CORP.

Appendix A

Explanation of Non-GAAP Financial Measures

Non-GAAP Definitions

Adjusted SG&A – A Non-GAAP financial measure defined by us as total SG&A less stock-based compensation and non-recurring legal expenses and settlements. We believe that Adjusted SG&A provides management, investors, and others a useful view of our operating spend as it excludes non-cash, stock-based compensation and expenses related to investments that management believes do not reflect the Company’s core operating expenses. We believe that Adjusted SG&A as a percentage of Total revenues is useful to management, investors, and others because it allows us to measure our operational leverage as revenue scales.

Adjusted EBITDA – A Non-GAAP financial measure defined by us as net (loss) income from continuing operations before depreciation and amortization, interest expense, change in fair value of warrants, loss on investment, stock-based compensation, premium deficiency reserve benefit, restructuring costs, impairment of goodwill and other intangible assets, and non-recurring legal expenses and settlements. Adjusted EBITDA is a key measure used by our management team and the board of directors to understand and evaluate our operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operating plans. In particular, we believe that the exclusion of the amounts eliminated in calculating Adjusted EBITDA provide useful measures for period-to-period comparisons of our business. Accordingly, we believe that Adjusted EBITDA provides investors and others useful information to understand and evaluate our operating results in the same manner as our management and our board of directors.

Adjusted Net income from continuing operations
– A Non-GAAP financial measure defined by us as net (loss) income from continuing operations before stock-based compensation, premium deficiency reserve benefit, restructuring costs, impairment of goodwill and other intangible assets, and non-recurring legal expenses and settlements. Adjusted Net income from continuing operations is a key measure used by our management team and the board of directors to understand and evaluate our operating performance and trends. We believe that Adjusted Net income from continuing operations is helpful to investors in assessing the Company’s financial performance in the same manner as our management and our board of directors.

Insurance Benefits Expense Ratio – A Non-GAAP financial measure defined by us as Benefits Expense Ratio (“BER”). We calculate our Insurance BER by taking the total of Insurance net medical expenses incurred and quality improvements, and dividing that total by premiums earned on a net basis, in a given period. Quality improvements include expenses associated with activities that improve health outcomes, as defined by the U.S. Department of Health and Human Services (“HHS”), as well as those directly tied to enhancing healthcare quality, such as the Company’s spend on health information technology, wellness and prevention programs, initiatives to reduce hospital readmissions, and our clinically focused Member Rewards program. We believe our Insurance BER is useful to management, investors, and others because it offers a clearer and more accurate representation of our investment in healthcare quality and member engagement, and gives a comprehensive view of costs related to maintaining and improving the quality of care of our members, which is crucial for sustaining member satisfaction and adherence to treatment regimens.

Posted on August 5, 2025 5:58 pm
Incyte Announces Departure of Chief Financial Officer Christiana Stamoulis

Incyte Announces Departure of Chief Financial Officer Christiana Stamoulis

– Company initiates search for successor and reaffirms full year financial guidance

WILMINGTON, Del.–(BUSINESS WIRE)–
Incyte (Nasdaq:INCY) today announced that Christiana Stamoulis will step down from her role as Executive Vice President and Chief Financial Officer (CFO) to pursue another opportunity, effective September 16, 2025. Ms. Stamoulis will remain with the Company until then to support a smooth transition. The Company has initiated the process of appointing a successor.

“Since joining Incyte in 2019, Christiana has been an invaluable part of the leadership team. I would like to take this opportunity to thank Christiana for her many contributions, and wish her well in her future endeavors,” said Bill Meury, President and Chief Executive Officer of Incyte. “As we search for our next CFO, our focus is on finding a strategic leader to execute our long-term growth plan.”

The Company reaffirms its previously issued financial guidance for 2025, as disclosed during its second-quarter earnings announcement on July 29, 2025. The Company’s financial position and strategic direction remain unchanged.

About Incyte

A global biopharmaceutical company on a mission to Solve On., Incyte follows the science to find solutions for patients with unmet medical needs. Through the discovery, development and commercialization of proprietary therapeutics, Incyte has established a portfolio of first-in-class medicines for patients and a strong pipeline of products in Oncology and Inflammation & Autoimmunity. Headquartered in Wilmington, Delaware, Incyte has operations in North America, Europe and Asia.

For additional information on Incyte, please visit Incyte.com or follow us on social media: LinkedIn, X, Instagram, Facebook, YouTube.

Forward-Looking Statements

Except for the historical information set forth herein, the matters set forth in this release contain predictions, estimates and other forward-looking statements, including any discussion of Incyte’s financial guidance for 2025, its strategic direction and plan for long-term growth.

These forward-looking statements are based on Incyte’s current expectations and subject to risks and uncertainties that may cause actual results to differ materially, including unanticipated developments in and risks related to: further research and development and the results of clinical trials possibly being unsuccessful or insufficient to meet applicable regulatory standards or warrant continued development; the ability to enroll sufficient numbers of subjects in clinical trials and the ability to enroll subjects in accordance with planned schedules; determinations made by the FDA, EMA and other regulatory agencies; Incyte’s dependence on its relationships with and changes in the plans of its collaboration partners; the efficacy or safety of Incyte’s products and the products of Incyte’s collaboration partners; the acceptance of Incyte’s products and the products of Incyte’s collaboration partners in the marketplace; market competition; unexpected variations in the demand for Incyte’s products and the products of Incyte’s collaboration partners; the effects of announced or unexpected price regulation or limitations on reimbursement or coverage for Incyte’s products and the products of Incyte’s collaboration partners; sales, marketing, manufacturing and distribution requirements, including Incyte’s and its collaboration partners’ ability to successfully commercialize and build commercial infrastructure for newly approved products and any additional products that become approved; greater than expected expenses, including expenses relating to litigation or strategic activities; variations in foreign currency exchange rates; and other risks detailed in Incyte’s reports filed with the Securities and Exchange Commission, including its annual report on form 10-K and its report on form 10-Q for the quarter ended June 30, 2025. Incyte disclaims any intent or obligation to update these forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250805985070/en/

Media

[email protected]

Investors

[email protected]

KEYWORDS: United States North America Delaware

INDUSTRY KEYWORDS: Biotechnology Pharmaceutical Health

MEDIA:

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Posted on August 5, 2025 5:58 pm
Zeta Global Reports 16th Straight “Beat and Raise” Quarter

Zeta Global Reports 16^th Straight “Beat and Raise” Quarter

Delivered revenue of $308M, an increase of 35% Y/Y, exceeding midpoint of guidance by $11M

Generated net cash provided by operating activities of $42M, an increase of 35% Y/Y, and Free Cash Flow of $34M, an increase of 69% Y/Y

Ended 2Q25 with zero net dilution versus 1Q25 and tracking to achieve 2025 dilution and SBC expense targets

As of July 25, Zeta used $85M of the $100M share repurchase authorization approved in November 2024

Zeta’s board of directors approved a new $200M stock repurchase program over 2 years to supplement the existing stock repurchase program in place today

Increasing FY25 revenue, adjusted EBITDA, and free-cash-flow guidance by more than the 2Q25 beat

NEW YORK–(BUSINESS WIRE)–
Zeta Global (NYSE: ZETA), the AI Marketing Cloud, today announced financial results for the second quarter ended June 30, 2025.

“We delivered another quarter of industry-leading growth, fueled by demand for our AI-powered marketing platform,” said David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta. “As we head into the back half of 2025, our AI-driven momentum on the heels of the Zeta Answers release, new Zeta Marketing Platform deployments, agency expansions, and OneZeta wins gives us conviction that Zeta is poised to capture even more market share.”

“We laid out an ambitious plan for 2028 revenue and free-cash-flow in February, and our first-half results put us firmly on track to meet those goals,” said Chris Greiner, Zeta’s CFO. “On the back of the strong execution and pipeline this quarter, we have the confidence and visibility to meaningfully raise our full year revenue guidance, adjusted EBITDA and, more importantly, significantly increase our free-cash flow expectations.”

Investor Day October 8^th Followed by Fifth Annual Zeta Live October 9^th

Zeta will hold its fifth annual Zeta Live conference on Thursday, October 9, in New York City. This year’s theme is Achieve the Impossible. Throughout the conference, we will have three stages of thought leadership sessions by today’s leading CEOs, CMOs, athletes, global thought leaders, brand marketers and advertisers. This year, because of demand, we will have a dedicated stage for Zeta’s products and upcoming launches. The day before, on October 8, we’ll host our second Investor Day, sharing our long-term roadmap, R&D pipeline, and the expanded leadership team driving Zeta’s growth.

Guidance*

Third Quarter 2025

Increasing revenue guidance to a range of $327 million to $329 million, up $5 million at the midpoint from the prior guidance of $323 million. The revised guidance represents a year-over-year growth rate of 22% to 23%.

Increasing Adjusted EBITDA guidance to a range of $70.3 million to $71.0 million, up $1 million at the midpoint from the prior guidance of $69.7 million. The revised guidance represents a year-over-year growth rate of 31% to 32% and an Adjusted EBITDA margin of 21.4% to 21.7%.

Full Year 2025

Increasing revenue guidance to a range of $1,258 million to $1,268 million, up $21 million at the midpoint from the prior guidance of $1,242 million. Revised guidance represents a year-over-year growth rate of 25% to 26%.

Increasing Adjusted EBITDA to a range of $263.6 million to $265.6 million, up $6 million at the midpoint from the prior guidance of $258.5 million. Revised guidance represents a year-over-year growth rate of 37% to 38% and an Adjusted EBITDA margin of 20.8% to 21.1%.

Increasing Free Cash Flow guidance to a range of $140.0 million to $144.0 million, up $10.5 million at the midpoint from the prior guidance of $131.5 million. Revised guidance represents a year-over-year growth rate of 52% to 56% and a Free Cash Flow margin of 11.0% to 11.4%.

Equity stock-based compensation to be $190 million.

* This press release does not include a reconciliation of forward-looking Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Free Cash Flow margin to forward-looking GAAP net income (loss), net income (loss) margin, or net cash provided by operating activities, respectively, because the Company is unable, without making unreasonable efforts, to provide a meaningful or reasonably accurate calculation or estimation of certain reconciling items which could be significant to the Company’s results.

Repurchase Program

On July 23, 2025, Zeta’s board of directors authorized a new stock repurchase and withholding program of up to $200.0 million in the aggregate for (i) repurchases of the Company’s outstanding shares of Class A Common Stock through December 31, 2027 and (ii) the withholding of shares as an alternative to market sales by certain executives and other employees to satisfy tax withholding requirements upon vesting of restricted stock awards (the “Stock Repurchase Program”). The Stock Repurchase Program supplements Zeta’s existing stock repurchase program authorized in 2024, under which, as of July 25, 2025, $15 million remained available for use prior to its expiration on December 31, 2026.

Under the Stock Repurchase Program, repurchases can be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or otherwise, all in accordance with the rules of the Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. The Stock Repurchase Program does not obligate Zeta to acquire any particular amount of common stock, and the Stock Repurchase Program may be suspended or discontinued at any time at Zeta’s discretion.

Investor Conference Call and Webcast

Zeta will host a conference call today, Tuesday, August 5, 2025, at 4:30 p.m. Eastern Time to discuss financial results for the second quarter 2025. A supplemental earnings presentation and a live webcast of the conference call can be accessed from the Company’s investor relations website (https://investors.zetaglobal.com/) where they will remain available for one year.

About Zeta

Zeta Global (NYSE: ZETA) is the AI Marketing Cloud that leverages advanced artificial intelligence (AI) and trillions of consumer signals to make it easier for marketers to acquire, grow, and retain customers more efficiently. Through the Zeta Marketing Platform (ZMP), our vision is to make sophisticated marketing simple by unifying identity, intelligence, and omnichannel activation into a single platform – powered by one of the industry’s largest proprietary databases and AI. Our enterprise customers across multiple verticals are empowered to personalize experiences with consumers at an individual level across every channel, delivering better results for marketing programs. Zeta was founded in 2007 by David A. Steinberg and John Sculley and is headquartered in New York City with offices around the world. To learn more, go to www.zetaglobal.com.

Forward-Looking Statements

This press release, together with other statements and information publicly disseminated by the Company, contains certain 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. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Any statements made in this press release or during the earnings call that are not statements of historical fact, including statements about our 2025 guidance, the Zeta 2028 targets, anticipated market share growth, expected sessions and timing of Zeta Live and Investor Day, the impacts of our prior investments on accelerating the timing of the marketing cloud replacement cycle, our products capabilities to provide strong investment returns to our customers, our strong competitive position, visibility of our current and new customers, expansion of existing customers, the capabilities of AI and Zeta’s platform, the acceleration of the digital transformation and our business, any future share repurchases under our existing share repurchase programs, and the growth and expansion of AI and the Zeta Marketing Platform, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning our anticipated future financial performance, our market opportunities and our expectations regarding our business plan and strategies. These statements often include words such as “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast,” “outlook,” “guidance” and other similar expressions. We base these forward-looking statements on our current expectations, plans and assumptions that we have made in light of our experience in the industry, as well as our perceptions of historical trends, current conditions, expected future developments and other factors we believe are appropriate under the circumstances at such time. Although we believe that these forward-looking statements are based on reasonable assumptions at the time they are made, you should be aware that many factors could affect our business, results of operations and financial condition and could cause actual results to differ materially from those expressed in the forward-looking statements. These statements are not guarantees of future performance or results.

The forward-looking statements are subject to and involve risks, uncertainties and assumptions, and you should not place undue reliance on these forward-looking statements. Factors that may materially affect such forward-looking statements include, but are not limited to: global supply chain disruptions; macroeconomic and industry trends and adverse developments in the debt, consumer credit and financial services markets and other macroeconomic factors beyond Zeta’s control; increases in our borrowing costs as a result of changes in interest rates and other factors; the impact of inflation, tariffs and changes in global trade policies on us and on our customers; potential fluctuations in our operating results, which could make our future operating results difficult to predict; underlying circumstances, including cash flows, cash position, financial performance, market conditions and potential acquisitions; prevailing stock prices, general economic and market condition; the impact of future pandemics, epidemics and other health crises on the global economy, our customers, employees and business; domestic and international political and geopolitical conditions or uncertainty, including political or civil unrest or changes in trade policy; our ability to innovate and make the right investment decisions in our product offerings and platform; the impact of new generative AI capabilities and the proliferation of AI on our business; our ability to attract and retain customers, including our scaled and super-scaled customers; our ability to manage our growth effectively; our ability to identify and integrate acquisitions or strategic investments; our ability to collect and use data online; the standards that private entities and inbox service providers adopt in the future to regulate the use and delivery of email may interfere with the effectiveness of our platform and our ability to conduct business; a significant inadvertent disclosure or breach of confidential and/or personal information we process, or a security breach of our or our customers’, suppliers’ or other partners’ computer systems; and any disruption to our third-party data centers, systems and technologies. These cautionary statements should not be construed by you to be exhaustive and the forward-looking statements are made only as of the date of this press release. 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 required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.

The third quarter and full year 2025 guidance provided herein are based on Zeta’s current estimates and assumptions and are not a guarantee of future performance. The guidance is subject to significant risks and uncertainties, including the risk factors discussed in the Company’s reports on file with the Securities and Exchange Commission (“SEC”), that could cause actual results to differ materially. There can be no assurance that the Company will achieve the results expressed by this guidance or the targets.

Availability of Information on Zeta’s Website and Social Media Profiles

Investors and others should note that Zeta routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Zeta investor relations website at https://investors.zetaglobal.com (“Investors Website”). We also intend to use the social media profiles listed below as a means of disclosing information about us to our customers, investors and the public. While not all of the information that the Company posts to the Investors Website or to social media profiles is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Zeta to review the information that it shares on the Investors Website and to regularly follow our social media profile links located at the bottom of the page on www.zetaglobal.com. Users may automatically receive email alerts and other information about Zeta when enrolling an email address by visiting “Investor Email Alerts” in the “Resources” section of the Investors Website.

Social Media Profiles:

www.x.com/zetaglobal

www.facebook.com/zetaglobal/

www.linkedin.com/company/zetaglobal

www.instagram.com/zetaglobal/

The Following Definitions Apply to the Terms Used Throughout this Release, the Supplemental Earnings Presentation and Investor Conference Call

Direct Platform and Integrated Platform: When the Company generates revenues entirely through the Company platform, the Company considers it direct platform revenue. When the Company generates revenue by leveraging its platform’s integration with third parties, it is considered integrated platform revenue.

Cost of revenue (excluding depreciation and amortization): Cost of revenue excludes depreciation and amortization and consists primarily of media and marketing costs and certain employee-related costs. Media and marketing costs consist primarily of fees paid to third-party publishers, media owners or managers, and strategic partners that are directly related to a revenue-generating event. We pay these third-party publishers, media owners or managers and strategic partners on a revenue-share, a cost-per-lead, cost-per-click, or cost-per-thousand-impressions basis. Employee-related costs included in cost of revenues include salaries, bonuses, commissions, stock-based compensation and employee benefit costs primarily related to individuals directly associated with providing services to our customers.

Scaled Customers: We define scaled customers as customers from which we generated at least $100,000 in revenue on a trailing twelve-month basis. We calculate the number of scaled customers at the end of each quarter and on an annual basis as the number of customers billed during each applicable period. We believe the scaled customers measure is both an important contributor to our revenue growth and an indicator to investors of our measurable success.

Super-Scaled Customers: We define super-scaled customers, which is a subset of Scaled Customers, as customers from which we generated at least $1,000,000 in revenue on a trailing twelve-month basis. We calculate the number of super-scaled customers at the end of each quarter and on an annual basis as the number of customers billed during each applicable period. We believe the super-scaled customers measure is both an important contributor to our revenue growth and an indicator to investors of our measurable success.

Scaled Customer ARPU: We calculate the scaled customer average revenue per user (“ARPU”) as revenue for the corresponding period divided by the number of scaled customers at the end of that period. We believe that scaled customer ARPU is useful for investors because it is an indicator of our ability to increase revenue and scale our business.

Super-Scaled Customer ARPU: We calculate the super-scaled customer ARPU as revenue for the corresponding period divided by the number of super-scaled customers at the end of that period. We believe that super-scaled customer ARPU is useful for investors because it is an indicator of our ability to increase revenue and scale our business.

Non-GAAP Measures

In order to assist readers of our consolidated financial statements in understanding the core operating results that our management uses to evaluate the business and for financial planning purposes, we describe our non-GAAP measures below. We believe these non-GAAP measures are useful to investors in evaluating our performance by providing an additional tool for investors to use in comparing our financial performance over multiple periods.

Adjusted EBITDA is a non-GAAP financial measure defined as net income / (loss) adjusted for interest expense, net, depreciation and amortization, stock-based compensation, income tax (benefit) / provision, acquisition-related expenses, restructuring expenses, change in fair value of warrants and derivative liabilities, certain dispute settlement expenses, gain on extinguishment of debt, certain non-recurring capital raise related (including initial public offering (“IPO”)) expenses, including the payroll taxes related to vesting of restricted stock and restricted stock units upon the completion of the IPO, and other expenses / (income). Acquisition-related expenses and restructuring expenses primarily consist of professional services fees, severance and other employee-related costs, which may vary from period to period depending on the timing of our acquisitions and restructuring activities and distort the comparability of the results of operations. Change in fair value of warrants and derivative liabilities is a non-cash expense related to periodically recording “mark-to-market” changes in the valuation of derivatives and warrants. Other expenses / (income) consist of non-cash expenses such as changes in fair value of acquisition-related liabilities, gains and losses onextinguishment of acquisition-related liabilities,gains and losses on sales of assets and foreign exchange gains and losses. In particular, we believe that the exclusion of stock-based compensation, certain dispute settlement expenses and non-recurring capital raise related (including IPO) expenses that are not related to our core operations provides measures for period-to-period comparisons of our business and provides additional insight into our core controllable costs. We exclude these charges because these expenses are not reflective of ongoing business and operating results.

Adjusted EBITDA margin is a non-GAAP financial measure defined as Adjusted EBITDA divided by the total revenues for the same period.

Free Cash Flow is a non-GAAP financial measure defined as cash from operating activities, less capital expenditures and website and software development costs, adjusted for the effect of exchange rates on cash and cash equivalents.

Free Cash Flow margin is a non-GAAP financial measure defined as Free Cash Flow divided by revenue for the same period.

Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Free Cash Flow margin provide us with useful measures for period-to-period comparisons of our business as well as comparison to our peers. We believe that these non-GAAP financial measures are useful to investors in analyzing our financial and operational performance. Nevertheless our use of Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Free Cash Flow margin has limitations as an analytical tool, and you should not consider these measures in isolation or as a substitute for analysis of our financial results as reported under GAAP. Other companies may calculate similarly-titled non-GAAP financial measures differently than us, thereby limiting the usefulness of these non-GAAP financial measures as a comparative tool. Because of these and other limitations, you should consider our non-GAAP measures only as supplemental to other GAAP-based financial performance measures, including revenues and net income / (loss).

We calculate forward-looking Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Free Cash Flow margin based on internal forecasts that omit certain amounts that would be included in forward-looking GAAP net income / (loss). We do not attempt to provide a reconciliation of forward-looking Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Free Cash Flow margin guidance and targets to forward looking GAAP net income / (loss), GAAP net income / (loss) margin GAAP cash flows from operating activities, or GAAP cash flows from operating activities margin, respectively, because forecasting the timing or amount of items that have not yet occurred and are out of our control is inherently uncertain and unavailable without unreasonable efforts. Further, we believe that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.

Zeta Global Holdings Corp.

Condensed Unaudited Consolidated Balance Sheets

(In thousands)

As of

June 30, 2025

December 31, 2024

Assets

Current assets:

Cash and cash equivalents

$

365,314

$

366,157

Accounts receivable

251,007

235,227

Prepaid expenses

11,346

13,348

Other current assets

2,531

1,808

Total current assets

$

630,198

$

616,540

Non-current assets:

Property and equipment, net

$

10,804

$

8,856

Website and software development costs, net

29,865

28,949

Right-to-use assets – operating leases, net

10,147

8,806

Intangible assets, net

95,181

115,180

Goodwill

317,672

325,992

Deferred tax assets, net

960

619

Other non-current assets

5,266

6,431

Total non-current assets

$

469,895

$

494,833

Total assets

$

1,100,093

$

1,111,373

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

48,035

$

43,665

Accrued expenses

115,948

121,400

Acquisition-related liabilities

13,834

12,727

Deferred revenue

3,856

10,348

Other current liabilities

12,156

11,197

Total current liabilities

$

193,829

$

199,337

Non-current liabilities:

Long-term borrowings

$

196,686

$

196,288

Acquisition-related liabilities

25,327

29,137

Other non-current liabilities

10,995

9,810

Total non-current liabilities

$

233,008

$

235,235

Total liabilities

$

426,837

$

434,572

Stockholders’ equity:

Class A Common Stock

$

213

$

213

Class B Common Stock

24

24

Additional paid-in capital

1,737,840

1,706,885

Accumulated deficit

(1,062,722

)

(1,028,308

)

Accumulated other comprehensive loss

(2,099

)

(2,013

)

Total stockholders’ equity

$

673,256

$

676,801

Total liabilities and stockholders’ equity

$

1,100,093

$

1,111,373

Condensed Unaudited Consolidated Statements of Operations

(In thousands)

Three months ended June 30,

Six months ended June 30,

2025

2024

2025

2024

Revenues

$

308,442

$

227,839

$

572,861

$

422,786

Operating expenses:

Cost of revenues (excluding depreciation and amortization)

116,988

91,082

220,476

167,955

General and administrative expenses

62,172

51,159

116,209

99,965

Selling and marketing expenses

86,392

75,604

161,761

147,019

Research and development expenses

30,592

23,614

57,391

43,600

Depreciation and amortization

17,403

12,964

35,090

26,705

Restructuring expenses

—

—

3,152

—

Total operating expenses

$

313,547

$

254,423

$

594,079

$

485,244

Loss from operations

(5,105

)

(26,584

)

(21,218

)

(62,458

)

Interest expense, net

166

2,560

497

5,185

Other expenses / (income)

6,351

(1,564

)

9,863

(893

)

Total other expenses

$

6,517

$

996

$

10,360

$

4,292

Loss before income taxes

(11,622

)

(27,580

)

(31,578

)

(66,750

)

Income tax provision

1,192

486

2,836

882

Net loss

$

(12,814

)

$

(28,066

)

$

(34,414

)

$

(67,632

)

The Company recorded stock-based compensation under respective lines of the above condensed unaudited consolidated statements of operations and comprehensive loss:

Three months ended June 30,

Six months ended June 30,

2025

2024

2025

2024

Cost of revenues (excluding depreciation and amortization)

$

302

$

499

$

563

$

770

General and administrative expenses

14,896

16,728

30,315

35,627

Selling and marketing expenses

22,460

26,947

42,005

53,497

Research and development expenses

8,813

7,985

15,575

14,903

Total

$

46,471

$

52,159

$

88,458

$

104,797

Condensed Unaudited Consolidated Statements of Cash Flows

(In thousands)

Six months ended June 30,

2025

2024

Cash flows from operating activities:

Net loss

$

(34,414

)

$

(67,632

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

35,090

26,705

Stock-based compensation

88,458

104,797

Deferred income taxes

(345

)

(67

)

Change in fair value of acquisition-related liabilities

9,165

(1,261

)

Others, net

2,761

450

Change in non-cash working capital (net of acquisitions):

Accounts receivable

(19,067

)

(13,070

)

Prepaid expenses

1,938

(2,352

)

Other current assets

(723

)

161

Other non-current assets

156

(1,153

)

Deferred revenue

(6,543

)

369

Accounts payable

2,703

(15,406

)

Accrued expenses and other current liabilities

(3,515

)

24,321

Other non-current liabilities

1,184

(86

)

Net cash provided by operating activities

$

76,848

$

55,776

Cash flows from investing activities:

Capital expenditures

(5,085

)

(12,565

)

Website and software development costs

(9,953

)

(8,212

)

Acquisitions and other investments, net of cash acquired

(1,202

)

—

Net cash used for investing activities

$

(16,240

)

$

(20,777

)

Cash flows from financing activities:

Cash paid for acquisition-related liabilities

(6,333

)

(6,952

)

Proceeds from credit facilities, net of issuance cost

6,250

11,250

Issuance under employee stock purchase plan

1,904

1,525

Exercise of options

964

1,841

Repurchase of shares

(57,931

)

(8,363

)

Repayments against the credit facilities

(6,250

)

(11,250

)

Net cash used for financing activities

$

(61,396

)

$

(11,949

)

Effect of exchange rate changes on cash and cash equivalents

(55

)

(78

)

Net (decrease) / increase in cash and cash equivalents

$

(843

)

$

22,972

Cash and cash equivalents, beginning of period

366,157

131,732

Cash and cash equivalents, end of period

$

365,314

$

154,704

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands)

The following table reconciles adjusted EBITDA and adjusted EBITDA margin to net loss and net loss margin, respectively, the most directly comparable financial measure calculated and presented in accordance with GAAP.

Three months ended June 30,

Six months ended June 30,

2025

2024

2025

2024

Net loss

$

(12,814

)

$

(28,066

)

$

(34,414

)

$

(67,632

)

Net loss margin

(4.2

)%

(12.3

)%

(6.0

)%

(16.0

)%

Add back:

Depreciation and amortization

17,403

12,964

35,090

26,705

Restructuring expenses

—

—

3,152

—

Stock-based compensation

46,471

52,159

88,458

104,797

Other expenses / (income)

6,351

(1,564

)

9,863

(893

)

Interest expense, net

166

2,560

497

5,185

Income tax provision

1,192

486

2,836

882

Adjusted EBITDA

$

58,769

$

38,539

$

105,482

$

69,044

Adjusted EBITDA margin

19.1

%

16.9

%

18.4

%

16.3

%

The following table reconciles net cash provided by operating activities in the Condensed Unaudited Consolidated Statements of Cash Flows to Free Cash Flow:

Three months ended June 30,

Six months ended June 30,

2025

2024

2025

2024

Net cash provided by operating activities

$

42,049

$

31,110

$

76,848

$

55,776

Capital expenditures

(2,349

)

(6,754

)

(5,085

)

(12,565

)

Website and software development costs

(5,798

)

(4,569

)

(9,953

)

(8,212

)

Effect of exchange rate changes on cash and cash equivalents

(344

)

35

(55

)

(78

)

Free Cash Flow

$

33,558

$

19,822

$

61,755

$

34,921

View source version on businesswire.com: https://www.businesswire.com/news/home/20250805998052/en/

Investor Relations

Matt Pfau

[email protected]

Press

Candace Dean

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Technology Marketing Advertising Communications Software Networks Internet Data Management Artificial Intelligence

MEDIA:

Logo

Posted on August 5, 2025 5:57 pm
Ceribell Reports Second Quarter 2025 Financial Results

SUNNYVALE, Calif., Aug. 05, 2025 (GLOBE NEWSWIRE) — CeriBell, Inc. (Nasdaq: CBLL) (“Ceribell”), a medical technology company focused on transforming the diagnosis and management of patients with serious neurological conditions, today reported financial results for the quarter ended June 30, 2025.

Second Quarter 2025 & Recent Highlights

Reported total revenue of $21.2 million in the second quarter of 2025, a 38% increase compared to the same period in 2024

Achieved gross margin of 88% in the second quarter of 2025

Ended the quarter with 584 total active accounts

“We are pleased with our second quarter results, which reflect our successful commercial execution as we accelerate adoption of the Ceribell System across new and existing accounts,” said co-founder and CEO Jane Chao, Ph.D. “As we look to the second half of 2025, we believe we are well-positioned to drive continued growth and propel key strategies to reach more patients, advance our pipeline, and reinforce our category leadership while establishing EEG as a new vital sign.”

Second Quarter 2025 Financial Results

Total revenue in the second quarter of 2025 was $21.2 million, a 38% increase from $15.3 million in the second quarter of 2024. The increase was primarily driven by continued commercial traction within our core market, resulting from adoption by new accounts and continued expansion within the company’s active account base. Product revenue for the second quarter of 2025 was $15.9 million, representing an increase of 38% from $11.6 million in the second quarter of 2024. Subscription revenue for the second quarter of 2025 was $5.3 million, representing an increase of 41% from $3.7 million in the second quarter of 2024.

Gross profit in the second quarter of 2025 was $18.7 million, compared to $13.2 million for the second quarter of 2024. Gross margin for the second quarter of 2025 was 88%, compared to 86% for the same period in 2024.

Operating expenses in the second quarter of 2025 were $33.6 million, compared to $21.6 million for the second quarter of 2024, representing an increase of 56%. The increase in operating expenses was primarily attributable to investments in the company’s commercial organization, increased headcount to support the growth of the business, legal expenses, and expenses related to operating as a public company.

Net loss in the second quarter of 2025 was $13.6 million, or $0.38 net loss per share, compared to a net loss of $8.9 million, or $1.61 net loss per share, for the same period in 2024.

Cash, cash equivalents, and marketable securities totaled $177.4 million as of June 30, 2025.

2025 Financial Outlook

Ceribell is raising its revenue guidance for the full year 2025 to a range of $85 million to $88 million, representing growth of approximately 30% to 34% over the company’s prior year revenue.

Webcast and Conference Call Details

Ceribell will host a conference call today, August 5, 2025, at 1:30 p.m. PT / 4:30 p.m. ET to discuss its second quarter 2025 financial results. Investors interested in listening to the conference call may do so by dialing (800) 715-9871 for domestic callers or (646) 307-1963 for international callers and providing access code 7468193. A live and archived webcast of the event will be available on the “Investor Relations” section of the Ceribell website at https://investors.ceribell.com/.

Forward-Looking Statements

Except where otherwise noted, the information contained in this earnings release and the related attachments is as of August 5, 2025. We assume no obligation to update any forward-looking statements contained in this earnings release and the related attachments as a result of new information or future events or developments. This earnings release and the related attachments contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about, among other topics, the anticipated rate and impact of tariffs on our estimated gross margins; our finished goods headband product inventory and the duration of supply of finished goods; revenue associated with subscription products; our anticipated operating and financial performance, including financial guidance and projections; business plans, strategy, goals and prospects; expectations for our products; and other statements that are not statements of historical fact. Given their forward-looking nature, these statements involve substantial risks, uncertainties and potentially inaccurate assumptions, and we cannot ensure that any potential outcome expressed in these forward-looking statements will be realized in whole or in part. You can identify these statements by the fact that they refer to future dates or use words such as “will,” “may,” “could,” “likely,” “ongoing,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “assume,” “target,” “forecast,” “guidance,” “goal,” “objective,” “aim,” “seek,” “potential,” “hope” and other words of similar meaning. Ceribell’s financial guidance is based on estimates and assumptions that are subject to significant uncertainties. Among the factors that could cause actual results to differ materially from past results and future plans and projected future results are the following: risks related to our limited operating history and history of net losses; our ability to successfully achieve substantial market acceptance and adoption of our products; competitive pressures; our ability to adapt our manufacturing and production capacities to evolving patterns of demand, governmental actions and customer trends; the manufacturing of a substantial number of our product components and their assembly in China; product defects or complaints and related liability; the complexity, timing, expense, and outcomes of clinical studies; our ability to obtain and maintain adequate coverage and reimbursement levels for our products; our ability to comply with changing laws and regulatory requirements and resulting costs; our dependence on a limited number of suppliers; and other risks and uncertainties, including those described under the heading “Risk Factors” in our Registration Statement on Form S-1, Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other reports filed with the U.S. Securities and Exchange Commission (“SEC”). These filings, when made, are available on the Investor Relations section of our website at https://investors.ceribell.com/ and on the SEC’s website at https://sec.gov/.

About CeriBell, Inc.

Ceribell is a medical technology company focused on transforming the diagnosis and management of patients with serious neurological conditions. Ceribell has developed the Ceribell System, a novel, point-of-care electroencephalography (“EEG”) platform specifically designed to address the unmet needs of patients in the acute care setting. By combining proprietary, highly portable, and rapidly deployable hardware with sophisticated artificial intelligence (“AI”)-powered algorithms, the Ceribell System enables rapid diagnosis and continuous monitoring of patients with neurological conditions. The Ceribell System is FDA-cleared for detecting suspected seizure activity and currently utilized in intensive care units and emergency rooms across the U.S. Ceribell is headquartered in Sunnyvale, California. For more information, please visit www.ceribell.com or follow the company on LinkedIn.

Investor Contacts

Brian Johnston or Laine Morgan
Gilmartin Group
[email protected]

Media Contact

Corrie Rose
[email protected]

Ceribell, Inc.

Condensed Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data)

(unaudited)

Three months ended June 30, Six months ended June 30,

2025 2024 2025 2024

Revenue

Product revenue $ 15,923 $ 11,576 $ 31,531 $ 22,611

Subscription revenue 5,276 3,739 10,159 7,104

Total revenue 21,199 15,315 41,690 29,715

Cost of revenue

Product cost of goods sold 2,351 2,033 4,711 3,977

Subscription cost of revenue 166 123 290 237

Total cost of revenue 2,517 2,156 5,001 4,214

Gross profit 18,682 13,159 36,689 25,501

Operating expenses

Research and development 4,852 3,270 9,098 6,254

Sales and marketing 17,422 10,712 35,455 21,288

General and administrative 11,360 7,612 21,295 14,847

Total operating expenses 33,634 21,594 65,848 42,389

Loss from operations (14,952 ) (8,435 ) (29,159 ) (16,888 )

Interest expense (477 ) (528 ) (948 ) (963 )

Change in fair value of warrant liability — (242 ) — (244 )

Other income, net 1,786 264 3,687 633

Loss, before provision for income taxes (13,643 ) (8,941 ) (26,420 ) (17,462 )

Provision for income tax expense — — — —

Net loss $ (13,643 ) $ (8,941 ) $ (26,420 ) $ (17,462 )

Net loss per share attributable to common stockholders:

Basic and diluted (0.38 ) (1.61 ) (0.73 ) (3.17 )

Weighted-average shares used in computing net loss per share attributable to common stockholders:

Basic and diluted 36,293,559 5,559,718 36,088,433 5,506,597

Other comprehensive loss

Unrealized gain on marketable securities $ 11 $ — $ 5 $ —

Comprehensive loss $ (13,632 ) $ (8,941 ) $ (26,415 ) $ (17,462 )

Ceribell, Inc.

Condensed Balance Sheets

(in thousands, except share and per share data)

(unaudited)

June 30, December 31,

2025 2024

Assets

Current assets

Cash and cash equivalents $ 40,141 $ 194,370

Marketable securities 137,287 —

Accounts receivable, net 12,312 10,878

Inventory 6,000 6,937

Contract costs, current 2,024 1,837

Prepaid expenses and other current assets 2,022 3,250

Total current assets 199,786 217,272

Property and equipment, net 2,105 2,313

Operating lease right-of-use assets 1,652 2,132

Contract costs, long-term 1,671 1,507

Other non-current assets 2,475 2,188

Total assets $ 207,689 $ 225,412

Liabilities and stockholders’ equity

Current liabilities

Accounts payable $ 2,441 $ 1,143

Accrued liabilities 10,426 10,052

Contract liabilities, current 216 97

Operating lease liability, current 1,146 1,088

Other current liabilities 785 609

Total current liabilities 15,014 12,989

Long-term liabilities

Notes payable, long-term 19,681 19,558

Contract liabilities, long-term 7 30

Other liabilities, long-term 106 356

Operating lease liability, long-term 726 1,314

Total long-term liabilities 20,520 21,258

Total liabilities $ 35,534 $ 34,247

Commitments and contingencies

Stockholders’ equity

Preferred stock, $0.001 par value;

Authorized shares: 10,000,000 as of both June 30, 2025 and December 31, 2024

Issued and outstanding shares: none as of both June 30, 2025 and December 31, 2024 — —

Common stock, $0.001 par value;

Authorized shares: 500,000,000 as of both June 30, 2025 and December 31, 2024

Issued and outstanding shares: 36,599,663 and 35,850,606 as of June 30, 2025 and December 31, 2024, respectively 37 36

Additional paid-in capital 365,477 358,073

Accumulated other comprehensive loss 5 —

Accumulated deficit (193,364 ) (166,944 )

Total stockholders’ equity 172,155 191,165

Total liabilities and stockholders’ equity $ 207,689 $ 225,412

Posted on August 5, 2025 5:57 pm
Hinge Health Reports Second Quarter 2025 Financial Results

Hinge Health Reports Second Quarter 2025 Financial Results

SAN FRANCISCO–(BUSINESS WIRE)–
Hinge Health, Inc. (NYSE: HNGE) today announced financial results for the second quarter ended June 30, 2025.

“In Q2 we delivered year-over-year revenue growth of 55% and a strong free cash flow margin, underlining the market’s embrace of our AI-powered platform,” said Daniel Perez, Co-Founder and CEO, Hinge Health. “The journey of automating healthcare delivery will be challenging, but we’re excited about our momentum and are moving with haste to capture this opportunity.”

Second Quarter 2025 Financial Highlights:

Revenue increased 55% year-over-year to $139.1 million compared to revenue of $89.8 million in Q2 2024.

GAAP gross margin was 70% compared to 74% in Q2 2024. Non-GAAP gross margin was 83% compared to 77% in Q2 2024.

GAAP loss from operations was $580.7 million, which included $591.0 million in stock-based compensation expense, compared to GAAP loss from operations of $17.6 million in Q2 2024. Non-GAAP income from operations was $26.1 million compared to non-GAAP loss from operations of $14.4 million in Q2 2024.

Net cash provided by operating activities was $20.2 million compared to a net cash provided by operating activities of $14.9 million during Q2 2024. Free cash flow was $32.6 million, which included an adjustment of $14.2 million for employer taxes related to stock-based compensation at IPO, compared to free cash flow of $14.0 million during Q2 2024.

Cash, cash equivalents, marketable securities and restricted cash were $415.1 million as of June 30, 2025.

Key Metrics as of June 30, 2025:

LTM calculated billings of $568.4 million compared to $367.8 million for Q2 2024, an increase of 55%.

Number of clients increased 32% to 2,359 clients compared to 1,785 clients in Q2 2024.

Financial Outlook:

We are providing the following guidance for our third quarter and full year 2025:

Q3 2025: We expect our revenue to be between $141 million and $143 million, reflecting year-over-year growth of 41% at the midpoint. We expect our non-GAAP income from operations to be between $17 million and $21 million, compared to non-GAAP loss from operations of $3.7 million in Q3 2024.

Fiscal Year 2025: We expect our revenue to be between $548 million and $552 million, reflecting year- over-year growth of 41% at the midpoint. We expect our non-GAAP income from operations to be between $77 million and $83 million, compared to non-GAAP loss from operations of $26.1 million in 2024.

Statement Regarding Use of Non-GAAP Financial Measures

This press release uses non-GAAP financial measures, which are not calculated in accordance with generally accepted accounting principles of the United States (GAAP). For more information about these non-GAAP financial measures, including the limitations of such measures, and for a reconciliation of each measure to the most directly comparable measure calculated in accordance with GAAP, please see the “Non-GAAP Financial Measures” section below.

Moreover, we have not reconciled our non-GAAP income (loss) from operations guidance to GAAP income (loss) from operations because we do not and are not able to provide guidance for GAAP income (loss) from operations due to the uncertainty and potential variability of stock-based compensation expense, employer payroll tax expense related to stock-based compensation, amortization of intangible assets and adjustments, such as the excess inventory and transition charges, restructuring and other expense and acquisition related expense, which are reconciling items between non-GAAP and GAAP income (loss) from operations. Because such items cannot be provided without unreasonable efforts, we are unable to provide a reconciliation of the non-GAAP financial measure guidance to the corresponding GAAP measures. However, such items could have a significant impact on our future GAAP income (loss) from operations.

Hinge Health Earnings Webcast

We will host a conference call and webcast for investors on August 5, 2025 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss our financial results, business highlights and financial outlook. The live webcast of the conference call can be accessed by registering online at ir.hingehealth.com/events-presentations.

Following completion of the events, a webcast replay will also be available at ir.hingehealth.com for 12 months.

About Hinge Health

Hinge Health is focused on scaling and automating the delivery of health care, starting with musculoskeletal conditions. Leveraging an AI-powered care model, a wearable device, and access to expert clinicians, Hinge Health delivers personalized, evidence-based care that helps people move beyond pain, improving member outcomes and experiences and reducing costs for clients. The Company is headquartered in San Francisco, California.

Available Information

Our investors and others should note that we announce material information to the public about our company, products and services, and other matters related to our Company through a variety of means, including filings with the U.S. Securities and Exchange Commission (“SEC”), the investor relations page on our website (ir.hingehealth.com), press releases, public conference calls, and webcasts in order to achieve broad, non-exclusionary distribution of information to the public and to comply with our obligations under Regulation FD.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release may be forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” or “will,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding our expectations regarding our financial position and operating performance, including our outlook and guidance for the third quarter of 2025 and guidance for full year 2025 and our assumptions underlying such guidance; our ability to drive future growth and execute on our goals and strategies; and our expectations regarding our product innovation. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including those more fully described under the caption “Risk Factors” in our Prospectus dated May 21, 2025, filed with the SEC on May 22, 2025, and elsewhere in documents that we file with the SEC, including our Quarterly Report on Form 10-Q for the second quarter ended June 30, 2025, which will be filed with the SEC on or around August 11, 2025. The forward-looking statements in this press release are based on information available to us as of the date hereof, and we disclaim any obligations to update any forward-looking statements, except as required by law.

HINGE HEALTH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

unaudited

(in thousands, except par value data)

June 30,

December 31,

2025

2024

Assets

Current assets:

Cash and cash equivalents

$

237,170

$

300,785

Marketable securities

176,087

165,787

Accounts receivable, net of allowance for credit losses of $7,649 and $6,470

as of June 30, 2025 and December 31, 2024, respectively

99,299

42,495

Deferred commissions

24,354

18,615

Inventory

13,987

10,873

Prepaid expenses and other current assets

47,528

44,891

Total current assets

598,425

583,446

Goodwill

64,096

61,607

Intangible assets, net

2,961

1,807

Property, equipment and software, net

7,724

7,380

Operating lease right-of-use assets

8,605

9,607

Other assets

11,843

9,412

Total assets

$

693,654

$

673,259

Liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)

Current liabilities:

Accounts payable and accrued liabilities

$

34,898

$

27,853

Operating lease liabilities

4,047

3,814

Deferred revenue

275,138

217,632

Total current liabilities

314,083

249,299

Operating lease liabilities, noncurrent

5,919

7,258

Total liabilities

320,002

256,557

Redeemable convertible preferred stock:

Redeemable convertible preferred stock; $0.00001 par value

199,874

851,272

Stockholders’ equity (deficit):

Common stock, $0.00001 par value

—

—

Class A common stock, $0.00001 par value

—

—

Class B common stock, $0.00001 par value

—

—

Additional paid-in capital

1,255,059

88,097

Accumulated other comprehensive gain (loss)

(34

)

68

Accumulated deficit

(1,081,247

)

(522,735

)

Total stockholders’ equity (deficit)

173,778

(434,570

)

Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)

$

693,654

$

673,259

HINGE HEALTH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

unaudited

(in thousands, except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2025

2024

2025

2024

Revenue

$

139,098

$

89,825

$

262,923

$

172,533

Cost of revenue

41,335

23,208

64,927

47,976

Gross profit

97,763

66,617

197,996

124,557

Operating expenses:

Research and development

279,962

24,920

303,462

54,683

Sales and marketing

147,228

44,894

193,944

87,037

General and administrative

251,244

14,354

268,125

31,812

Total operating expenses

678,434

84,168

765,531

173,532

Loss from operations

(580,671

)

(17,551

)

(567,535

)

(48,975

)

Other income:

Other income, net

4,694

4,986

9,695

10,104

Net loss before income taxes

(575,977

)

(12,565

)

(557,840

)

(38,871

)

Provision (benefit) for income taxes

(326

)

361

672

519

Net loss

$

(575,651

)

$

(12,926

)

$

(558,512

)

$

(39,390

)

Adjustment to reflect deemed contribution

from Series D and Series E redeemable

convertible preferred stock extinguishment

—

—

104,174

—

Net loss attributable to common stockholders

$

(575,651

)

$

(12,926

)

$

(454,338

)

$

(39,390

)

Net loss per share attributable to common

stockholders, basic and diluted

$

(13.10

)

$

(0.96

)

$

(15.05

)

$

(2.93

)

Weighted average shares attributable to

common stockholders, basic and diluted

43,931

13,528

30,190

13,455

HINGE HEALTH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

unaudited

(in thousands)

Three Months Ended June 30,

Six Months Ended June 30,

2025

2024

2025

2024

Operating activities

Net loss

$

(575,651

)

$

(12,926

)

$

(558,512

)

$

(39,390

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

1,343

1,554

2,646

3,168

Stock-based compensation

590,983

306

590,990

610

Amortization of deferred commissions

10,680

7,147

19,870

13,411

Accretion of discounts and amortization of premiums on

marketable securities, net

277

11

326

217

Excess and obsolete inventory charge

—

1,309

—

1,812

Non-cash operating lease expense

843

925

1,688

1,833

Provision for credit losses

1,894

1,570

2,780

2,487

Deferred income taxes

90

—

96

—

Other

2

(6

)

(2

)

(3

)

Changes in operating assets and liabilities:

Accounts receivable

(25,304

)

(6,069

)

(59,584

)

(23,281

)

Deferred commissions

(17,020

)

(11,165

)

(27,650

)

(18,171

)

Inventory

(1,202

)

(402

)

(3,114

)

1,137

Prepaid expenses and other current assets

(14,743

)

4,163

(6,609

)

1,295

Other assets

(211

)

(283

)

(485

)

239

Accounts payable and accrued liabilities

(8,713

)

(15,574

)

6,997

(7,661

)

Operating lease liabilities

(851

)

(1,195

)

(1,792

)

(2,372

)

Deferred revenue

57,810

45,558

57,505

46,934

Net cash provided by (used in) operating activities

20,227

14,923

25,150

(17,735

)

Investing activities:

Purchase of property and equipment

(197

)

(437

)

(248

)

(567

)

Capitalized internal use software

(1,630

)

(497

)

(2,336

)

(1,316

)

Purchases of marketable securities

(85,110

)

(84,453

)

(175,282

)

(160,768

)

Maturities of marketable securities

90,958

88,056

164,556

181,550

Acquisition of a business

—

—

(4,000

)

—

Net cash provided by (used in) investing activities

4,021

2,669

(17,310

)

18,899

Financing activities:

Proceeds from exercise of stock options

159

218

256

277

Proceeds from issuance of common stock in initial public

offering, net of issuance costs

255,675

—

255,675

—

Tax withholdings on settlement of restricted

stock units and performance-based restricted stock units

(272,258

)

—

(272,258

)

—

Payment on Repurchase Agreement with Coatue

(50,000

)

—

(50,000

)

—

Proceeds from repayment of non-recourse loans

to employees

—

—

4,934

—

Payments for deferred offering costs

(9,134

)

(125

)

(10,061

)

(125

)

Net cash provided by (used in)

financing activities

(75,558

)

93

(71,454

)

152

Net increase (decrease) in cash

(51,310

)

17,685

(63,614

)

1,316

Cash, cash equivalents and restricted cash, beginning of period

290,282

221,105

302,586

237,474

Cash, cash equivalents and restricted cash, end of period

$

238,972

$

238,790

$

238,972

$

238,790

Reconciliation of cash, cash equivalents and restricted cash

to the consolidated balance sheets:

Cash and cash equivalents

$

237,170

$

236,628

$

237,170

$

236,628

Restricted cash

1,802

2,162

1,802

2,162

Total cash, cash equivalents and restricted cash

$

238,972

$

238,790

$

238,972

$

238,790

Glossary of Terms

LTM Calculated Billings: We believe calculated billings on a last 12-months basis helps investors better understand our performance for a particular period given the seasonality in our model due to quarterly fluctuations based on the timing of new client launches and number of intra-year launches. We anticipate that this seasonality will continue and therefore focus on LTM calculated billings. Our revenue generally does not reflect this seasonality and these quarterly fluctuations given that we recognize revenue ratably over the term that members have access to our platform. LTM calculated billings are defined as total revenue, plus the change in deferred revenue, less the change in contract assets for a given 12-month period.

Number of Clients: We view this number as an important metric to assess the performance of our business as an increased number of clients drives growth, increases brand awareness, and helps provide scale to our business. Clients are defined as businesses or organizations, which we call entities, that have at least one active agreement with us at the end of a particular period. Entities that procure our platform through our partners are counted as individual clients. We do not count our partners as clients, unless they also separately have at least one active client agreement with us. When a partner has an agreement with us for their fully-insured population, that partner is deemed to be one client, despite there being multiple fully-insured employers within that entity that have access to our platform.

Non-GAAP Financial Measures

In addition to our results prepared in accordance with GAAP, we believe the following non-GAAP financial measures, including non-GAAP gross profit and gross margin, non-GAAP income (loss) from operations and operating margin, non-GAAP operating expenses, and free cash flow and free cash flow margin included in this press release, provide users of our financial information with additional useful information in evaluating our performance and liquidity and allows them to more readily compare our results across periods without the effect of non-cash and other items as detailed below. Additionally, our management and board of directors use our non-GAAP financial measures to evaluate our performance and liquidity, identify trends and make strategic decisions.

There are limitations to the use of the non-GAAP financial measures presented in this press release. For example, our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes. Our non-GAAP financial measures should not be considered in isolation or as alternatives to gross profit, gross margin, income (loss) from operations, net cash provided by (used in) operating activities or any other measure of financial performance calculated and presented in accordance with GAAP.

Non-GAAP Gross Profit and Gross Margin

We define non-GAAP gross profit as gross profit presented in accordance with GAAP, adjusted to exclude non-cash, non-operational and non-recurring items, including excess and obsolete inventory charges related to our AI-powered motion tracking technology transition, stock-based compensation expense, employer payroll tax expense related to stock-based compensation, amortization of intangible assets, and restructuring and other expenses. We define non-GAAP gross margin as non-GAAP gross profit divided by revenue.

The principal limitation of non-GAAP gross profit and non-GAAP gross margin is that they exclude significant expenses that are required by GAAP to be recorded in our consolidated financial statements, including non-cash expenses, and the impact of non-recurring charges that we do not consider to be indicative of our ongoing core operations.

Non-GAAP Income (Loss) From Operations and Operating Margin

We define non-GAAP income (loss) from operations as income (loss) from operations presented in accordance with GAAP, adjusted to exclude non-cash, non-operational and non-recurring items, including excess and obsolete inventory charges related to our AI-powered motion tracking technology transition, stock-based compensation expense, employer payroll tax expense related to stock-based compensation, amortization of intangible assets, restructuring and other expenses and acquisition-related expenses. We define non-GAAP operating margin as non-GAAP income (loss) from operations divided by revenue.

The principal limitation of non-GAAP income (loss) from operations and non-GAAP operating margin is that they exclude significant expenses that are required by GAAP to be recorded in our consolidated financial statements, including non-cash expenses, and the impact of non-recurring charges that we do not consider to be indicative of our ongoing core operations.

Non-GAAP Operating Expenses

We define non-GAAP operating expenses as operating expenses presented in accordance with GAAP, adjusted to exclude non-cash, non-operational and non-recurring items, including stock-based compensation expense, employer payroll tax expense related to stock-based compensation, restructuring and other expenses and acquisition-related expenses.

The principal limitation of non-GAAP research and development expenses, non-GAAP sales and marketing expenses and non-GAAP general and administrative expenses is that they exclude significant expenses that are required by GAAP to be recorded in our consolidated financial statements, including non-cash expenses, and the impact of non-recurring charges that we do not consider to be indicative of our ongoing core operations.

Free Cash Flow and Free Cash Flow Margin

We define free cash flow as net cash provided by (used in) operating activities plus cash used for employer payroll taxes related to pre-IPO stock-based compensation less purchases of property, equipment and software (including capitalized internal-use software). We believe that free cash flow is a helpful indicator of liquidity that provides information to management and investors about the amount of cash generated or used by our operations that, after taking into account the employer payroll taxes paid as part of the vesting of shares at IPO as well as investments in property, equipment and software (including capitalized internal-use software), can be used for strategic initiatives, including investing in our business and strengthening our financial position. The principal limitation of free cash flow is that it does not represent the total increase or decrease in our cash balance for a given period. We define free cash flow margin as free cash flow divided by revenue.

We adjust the following items from one or more of our non-GAAP financial measures:

Excess and obsolete inventory charges.We exclude certain charges related to excess and obsolete inventory related to our AI-powered motion tracking technology transition, which was our strategic decision in the first half of 2023 to shift away from providing kits with tablets and wearable sensors. As part of this shift, we began to provide access to our platform through our app on members’ personal smartphones or tablets and replaced sensors for members with our proprietary AI-powered motion tracking technology. We exclude these charges because we do not believe these expenses have a direct correlation to the operating performance of our business.

Stock-based compensation expense. We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding our operating performance.

Employer payroll tax expense related to stock-based compensation. We exclude expenses for employer payroll taxes related to stock-based compensation from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, this expense is tied to the exercise, vesting or sale of underlying equity awards and the price of our common stock at the time of exercise, vesting or sale which may vary from period to period independent of the operating performance of our business.

Amortization of intangible assets.We exclude amortization of intangible assets, which is a non-cash expense, from certain of our non-GAAP financial measures. Our expenses for amortization of intangible assets are inconsistent in amount and frequency because they are significantly affected by the timing, size of acquisitions and the inherent subjective nature of purchase price allocations. We exclude these amortization expenses because we do not believe these expenses have a direct correlation to the operating performance of our business.

Restructuring and other expenses. We exclude certain charges that are mainly attributable to workforce reduction in order to simplify our operations and better align our resources with our priorities. We exclude these charges because we do not believe these charges have a direct correlation to the operating performance of our business.

Acquisition-related expenses. We exclude certain charges that are attributable to acquiring businesses. We exclude these charges because we do not believe these charges have a direct correlation to the operating performance of our business.

HINGE HEALTH, INC.

unaudited

(in thousands, except percentages)

Reconciliation of GAAP to Non-GAAP Financial Measures:

Three Months Ended

June 30,

Six Months Ended

June 30,

2025

2024

2025

2024

GAAP gross profit

$

97,763

$

66,617

$

197,996

$

124,557

GAAP gross margin

70

%

74

%

75

%

72

%

Excess and obsolete inventory charges ⁽¹⁾

—

1,309

—

1,812

Stock-based compensation expense ⁽²⁾

16,441

37

16,441

72

Employer payroll tax expense related to stock-based compensation

893

—

893

—

Amortization of intangible assets

225

95

406

189

Restructuring and other expenses

—

711

—

711

Non-GAAP gross profit

$

115,322

$

68,769

$

215,736

$

127,341

Non-GAAP gross margin

83

%

77

%

82

%

74

%

Three Months Ended

June 30,

Six Months Ended

June 30,

2025

2024

2025

2024

GAAP loss from operations

$

(580,671

)

$

(17,551

)

$

(567,535

)

$

(48,975

)

GAAP operating margin

(417

)%

(20

)%

(216

)%

(28

)%

Excess and obsolete inventory charges ⁽¹⁾

—

1,309

—

1,812

Stock-based compensation expense ⁽²⁾

590,983

306

590,990

610

Employer payroll tax expense related to stock-based compensation

14,227

(6,253

)

14,227

(6,253

)

Amortization of intangible assets

225

95

406

189

Restructuring and other expenses

—

7,599

—

8,671

Acquisition-related expenses

1,337

100

2,968

100

Non-GAAP income (loss) from operations

$

26,101

$

(14,395

)

$

41,056

$

(43,846

)

Non-GAAP operating margin

19

%

(16

)%

16

%

(25

)%

(1)

Reflects our strategic decision in the first half of 2023 to shift away from providing kits with tablets and wearable sensors. As part of this shift, we began to provide access to our platform through our app on members’ personal smartphones or tablets and replaced all sensors for members with our proprietary AI-powered motion tracking technology.

(2)

Stock-based compensation expense:

Three Months Ended

June 30,

Six Months Ended

June 30,

2025

2024

2025

2024

Cost of revenue

$

16,441

$

37

$

16,441

$

72

Research and development

248,809

81

248,809

161

Sales and marketing

95,050

89

95,050

181

General and administrative

230,683

99

230,690

196

$

590,983

$

306

$

590,990

$

610

HINGE HEALTH, INC.

unaudited

(in thousands, except for percentages)

Three Months Ended

June 30,

Six Months Ended

June 30,

2025

2024

2025

2024

GAAP research and development

$

279,962

$

24,920

$

303,462

$

54,683

GAAP research and development as a percentage of revenue

201

%

28

%

115

%

32

%

Stock-based compensation expense ⁽²⁾

(248,809

)

(81

)

(248,809

)

(161

)

Employer payroll tax expense related to stock-based compensation

(7,020

)

2,852

(7,020

)

2,852

Restructuring and other expenses

—

(3,428

)

—

(4,394

)

Acquisition-related expenses

(1,358

)

—

(2,816

)

—

Non-GAAP research and development

$

22,775

$

24,263

$

44,817

$

52,980

Non-GAAP research and development as a percentage of revenue

16

%

27

%

17

%

31

%

Three Months Ended

June 30,

Six Months Ended

June 30,

2025

2024

2025

2024

GAAP sales and marketing

$

147,228

$

44,894

$

193,944

$

87,037

GAAP sales and marketing as a percentage of revenue

106

%

50

%

74

%

50

%

Stock-based compensation expense ⁽²⁾

(95,050

)

(89

)

(95,050

)

(181

)

Employer payroll tax expense related to stock-based compensation

(2,630

)

—

(2,630

)

—

Restructuring and other expenses

—

(2,004

)

—

(2,053

)

Non-GAAP sales and marketing

$

49,548

$

42,801

$

96,264

$

84,803

Non-GAAP sales and marketing as a percentage of revenue

36

%

48

%

37

%

49

%

Three Months Ended

June 30,

Six Months Ended

June 30,

2025

2024

2025

2024

GAAP general and administrative

$

251,244

$

14,354

$

268,125

$

31,812

GAAP general and administrative as a percentage of revenue

181

%

16

%

102

%

18

%

Stock-based compensation expense ⁽²⁾

(230,683

)

(99

)

(230,690

)

(196

)

Employer payroll tax expense related to stock-based compensation

(3,684

)

3,401

(3,684

)

3,401

Restructuring and other expenses

—

(1,456

)

—

(1,512

)

Acquisition-related expenses

22

(100

)

(153

)

(100

)

Non-GAAP general and administrative

$

16,899

$

16,100

$

33,598

$

33,405

Non-GAAP general and administrative as a percentage of revenue

12

%

18

%

13

%

19

%

(2)

For details on stock-based compensation expense, see above.

Three Months Ended June 30,

Six Months Ended June 30,

2025

2024

2025

2024

Net cash provided by (used in) operating activities

$

20,227

$

14,923

$

25,150

$

(17,735

)

Operating cash flow margin

15

%

17

%

10

%

(10

)%

Adjustment for employer taxes related to pre-IPO stock-based compensation

14,227

—

14,227

—

Less purchases of property, equipment and software

(including capitalized internal use software)

(1,827

)

(934

)

(2,584

)

(1,883

)

Free cash flow

$

32,627

$

13,989

$

36,793

$

(19,618

)

Free cash flow margin

23

%

16

%

14

%

(11

)%

View source version on businesswire.com: https://www.businesswire.com/news/home/20250804388687/en/

Investor Relations Contact:

[email protected]

Media Contact:

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Technology Medical Devices Public Relations/Investor Relations Communications Software Health General Health Data Management Artificial Intelligence

MEDIA:

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Posted on August 5, 2025 5:56 pm
Amwell® Announces Results for Second Quarter 2025

BOSTON, Aug. 05, 2025 (GLOBE NEWSWIRE) — Amwell^® (NYSE: AMWL), a leading provider of a comprehensive SaaS-based technology-enabled healthcare platform, today announced financial results for the second quarter ended June 30. The company’s second quarter earnings report may be viewed at investors.amwell.com.

Amwell will host a conference call to discuss its financial results today at 5 p.m. ET. The call can be accessed via a live audio webcast at https://edge.media-server.com/mmc/p/ve8zytc3/. A webcast replay will be available for approximately 90 days at investors.amwell.com.

About Amwell

Amwell offers payers and health systems a single, comprehensive, technology-enabled care platform. We use technology to provide patients with better access to more convenient, affordable and effective care. The Amwell platform includes software and services that power many clinical programs from Amwell and our growing number of partners. Our platform allows patients to experience unified, personalized and simple access to diversified clinical programs across the care continuum. As more people seek care online and more clinical programs become available, we offer integrated, future-ready, consistent solutions. The Amwell platform is proven, operating at a large scale, enabling care for millions of patients and their sponsors while delivering dependable outcomes. For almost two decades, Amwell has proudly served some of the largest and most sophisticated healthcare organizations in the U.S. and worldwide. For more information, visit business.amwell.com or LinkedIn.

Contacts

Media:

[email protected]

Investors:

Sue Dooley
[email protected]

Posted on August 5, 2025 5:55 pm
Klaviyo Announces Second Quarter 2025 Financial Results

Klaviyo Announces Second Quarter 2025 Financial Results

Second quarter revenue of $293.1 million, representing 32% year-over-year growth

Raises FY25 revenue guidance to $1.195 billion to $1.203 billion, for year-over-year growth of 27% to 28%

BOSTON–(BUSINESS WIRE)–Klaviyo (NYSE: KVYO), the only CRM built for consumer brands, today announced results for its second quarter ended June 30, 2025.

“Klaviyo delivered another standout quarter, with revenue growing 32% year-over-year to $293 million, underscoring the vital role our B2C CRM platform plays for over 176,000 customers globally,” said Andrew Bialecki, co-founder and CEO of Klaviyo. “Our AI-native platform is built to help brands personalize at scale—turning data into action in real time to drive measurable growth and deepen customer relationships. Across both Marketing and Service, we’re enabling brands to move faster, act smarter, and unlock entirely new possibilities for how they connect with consumers.”

Recent Business Highlights:

Announced the public beta of Klaviyo Service, a disruptive suite of AI-powered tools that puts AI shopping agents, real-time customer data, and seamless service experiences within reach of every brand.

Closed new and expanded existing customer accounts, such as Princess Polly, Winston Flowers, Loop Earplugs, and others during the quarter ended June 30, 2025.

Over 176,000 customers were using Klaviyo to drive their own revenue growth as of June 30, 2025, compared to over 151,000 customers as of June 30, 2024.

Continued growing our number of large customers, ending the quarter with 3,291 customers generating over $50,000 of ARR, compared to 2,386 at the end of the second quarter of 2024, an increase of 38% year-over-year.

Drove continued international expansion with 42% year-over-year revenue growth in EMEA and APAC.

Grew with our existing customer base, with NRR of 108% as of June 30, 2025.

“Our second quarter results underscore Klaviyo’s efficient growth at scale, as revenue increased 32% year-over-year to $293 million and we delivered more than $55 million in operating cash flow,” said Amanda Whalen, CFO of Klaviyo. “This outstanding performance, driven by broad-based strength across customers and significant international growth, validates the critical value our unified B2C CRM platform delivers.”

Second Quarter 2025 Financial Highlights:

$ in millions (except per share amounts)

Q2 FY25

Revenue

$293.1

YoY Growth

32%

Gross Profit

$221.9

Gross Margin

76%

Non-GAAP Gross Profit

$224.1

Non-GAAP Gross Margin

76%

Operating Loss

$(31.3)

Operating Margin

(11)%

Non-GAAP Operating Income

$40.9

Non-GAAP Operating Margin

14%

Net loss per share, basic and diluted

$(0.09)

Non-GAAP net income per share, basic

$0.17

Non-GAAP net income per share, diluted

$0.16

Cash from Operating Activities

$55.7

Free Cash Flow

$59.3

Financial Outlook

$ in millions

FY25-Q3 Guidance

FY25 Guidance

Low

High

Low

High

Revenue

$297.0

$301.0

$1,195.0

$1,203.0

Year-over-year Growth Rate

26%

28%

27%

28%

Non-GAAP Operating Income

$32.5

$35.5

$144.0

$150.0

Non-GAAP Operating Margin

11%

12%

12%

12%

Fully Diluted Shares Outstanding (Millions)

309

308

Klaviyo has not provided a reconciliation of non-GAAP operating income guidance measures to the most directly comparable GAAP measures because certain items excluded from GAAP cannot be reasonably calculated or predicted at this time. Accordingly, a reconciliation is not available without unreasonable effort. Stock-based compensation-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change.

Dilutive Securities

Klaviyo has various dilutive securities. The table below details these securities (shares in millions; rounding differences may occur):

Price as of June 30, 2025

Weighted Average Exercise Price

Shares

Share price

$

33.58

Common stock outstanding as of 6/30/2025

299.6

Warrants outstanding

3.1

RSUs outstanding

18.4

Options outstanding

$

2.25

2.6

ESPP shares outstanding

—

Total estimated fully diluted shares

323.7

We have excluded the impact of the Shopify investment option of 15,743,174 shares at $88.93 per share as it was out of the money as of June 30, 2025. The investment option expires on July 28, 2030.

Executive Leadership Update

Klaviyo also announced that on July 30, 2025, Steve Rowland informed the company of his intention to retire from his position as President. Mr. Rowland will remain in his role until December 31, 2025, following which he will remain at the company as a strategic advisor to help with the transition until March 31, 2026.

“Steve has been instrumental in our mid-market and enterprise growth, expanding our partner ecosystem, and building a world-class go-to-market team. During his time here, our revenue run rate grew from $660M to $1.1B. We’re grateful for his impact and wish him the best in what’s next,” said Bialecki.

“I’m incredibly proud of what we’ve accomplished together at Klaviyo. From the IPO to our continued momentum upmarket and expansion globally, it’s been a privilege to help shape such an important chapter. I look forward to supporting the team with a smooth transition in the coming months,” said Steve Rowland.

Conference Call Information

In conjunction with this announcement, Klaviyo will host a conference call for investors at 4:30 p.m. ET (1:30 p.m. PT) today to discuss the results for its second quarter ended June 30, 2025 and its outlook for its third quarter ending September 30, 2025 and fiscal year ending December 31, 2025. The live webcast and a replay of the webcast will be available at the Investor Relations section of Klaviyo’s website: https://investors.klaviyo.com (live and replay).

Select Defined Terms

Customers.We define a customer as a distinct paid subscription to our platform. A single organization could have multiple discrete contracting divisions or subsidiaries or brands each with paid subscriptions to our platform, which would, in general, constitute multiple distinct customers. In some cases at the customer’s request, we allow subscriptions under the same parent organization to be consolidated into a single paid subscription in which case such consolidated paid subscriptions would constitute a single customer. We measure our total number of customers as a point-in-time calculation measured as of the end of a particular period. Customers do not include persons or entities that use our platform on a free trial basis.

Customers Generating Over $50,000 of ARR.We calculate our number of customers generating over $50,000 of ARR (as defined below) as those customers that have an average ARR of greater than $50,000 over the prior twelve months (or the entire duration of the customer’s paying relationship, if it is less than twelve months) as of the date of determination. We believe the number of customers generating over $50,000 of ARR is a key performance metric to help investors and others understand and evaluate our results of operations in the same manner as our management team, as it is an indicator of our ability to grow the number of customers that are exceeding this ARR threshold, both from our existing customers expanding their usage of our platform and from our sales to larger customers. We believe this is an important indicator of our ability to continue to successfully move up market.

Dollar-Based Net Revenue Retention Rate.We calculate our Dollar-Based Net Revenue Retention Rate (“NRR”) by first identifying the cohort of customers as of twelve months prior to the date of determination. We then calculate the Annualized Recurring Revenue (“ARR”) from this customer cohort as of twelve months prior to the date of determination (the “Prior Period ARR”) and the ARR from this customer cohort as of the date of determination (the “Current Period ARR”). ARR, for any date of determination, is the annualized value of existing paid subscriptions, which we calculate by taking the amount of revenue that we expect to receive in the next monthly period for our existing paid subscriptions, assuming no changes to such subscriptions in the next month, as of that date of determination, and multiplying that amount by twelve. Current Period ARR includes any expansion, price increases, and customer subscriptions that are deactivated and subsequently reactivated during the applicable twelve-month period and reflects contraction or attrition over the last twelve months from this customer cohort, but excludes any ARR from new customers in the current period. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the point-in-time NRR. We then calculate the weighted average point-in-time NRR as of the last day of each month in the current trailing twelve-month period to arrive at the NRR, with the weightings determined by the total ARR at the end of each period. We believe NRR is a key performance metric to help investors and others understand and evaluate our results of operations in the same manner as our management team, as it represents the expansion in usage of our platform by our existing customers, which is an important measure of the health of our business and future growth prospects. We measure Dollar-Based Net Revenue Retention Rate to measure this growth.

About Klaviyo

Klaviyo (NYSE: KVYO) is the only CRM built for B2C brands. Powered by its built-in data platform and AI insights, Klaviyo combines marketing automation, analytics, and customer service into one unified solution, making it easy for businesses to know their customers and grow faster. Klaviyo (CLAY-vee-oh) helps relationship-driven brands like Mattel, Glossier, CorePower Yoga, Daily Harvest and 176,000+ others deliver 1:1 experiences at scale, improve efficiency, and drive revenue.

Forward Looking Statements

This press release includes certain “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Other than statements of historical facts, all statements contained in this press release, including, but not limited to, statements about Klaviyo’s outlook for the third quarter of fiscal year 2025 ending September 30, 2025 and the full fiscal year ending December 31, 2025, and Klaviyo’s expectations regarding possible or assumed business strategies, potential growth and innovation opportunities, new products, potential market opportunities, and other similar matters, are forward-looking statements. Words such as “aim,” “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “future,” “going to,” “guidance,” “intend,” “keep,” “may,” “opportunity,” “outlook,” “plan,” “potential,” “predict,” “project,” “shall,” “should,” “strategy,” “target,” “will,” “would,” or words of similar meaning or similar references to future periods may identify these forward-looking statements, although not all forward-looking statements contain these identifying words.

Forward-looking statements reflect management’s beliefs, expectations and assumptions about future events as of the date hereof, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. These risks include, among others, the following: our ability to achieve future growth and sustain our growth rate; our ability to successfully execute our business and growth strategy, such as the success of our investment in our key growth initiatives and our ability to recognize effective areas for growth; our ability to successfully integrate with third-party platforms; our relationships with third parties, such as our marketing agency and technology partners; unfavorable conditions in our industry; our ability to attract new customers, including mid-market and enterprise customers, retain revenue from existing customers and increase sales from both new and existing customers; our ability to leverage artificial intelligence and machine learning in our products; our ability to sustain strong international growth; the success of our marketing and sales strategies; costs and expenses associated with being a public company; the impact of macroeconomic factors, including tariffs; as well as other risks and uncertainties set forth under the caption “Risk Factors” and elsewhere in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, as filed with the Securities and Exchange Commission (the “SEC”), and the other filings and reports we make with the SEC from time to time, which may be obtained on our Investor Relations website at https://investors.klaviyo.com and on the SEC website at www.sec.gov. Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. In light of the risks, uncertainties, assumptions, and other factors, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Therefore, you should not rely on any of the forward-looking statements. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. Other than as required by law, we assume no obligation to update any forward-looking statements contained in this press release in the event of new information, future developments or otherwise.

Statement Regarding Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), this press release and the accompanying tables contain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per share, basic, non-GAAP net income per share, diluted, free cash flow, and free cash flow margin. The non-GAAP financial information is presented for supplemental informational purposes only and is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Please see the accompanying tables for reconciliations of these non-GAAP financial measures to their nearest GAAP equivalents.

Our non-GAAP gross profit, non-GAAP operating income, non-GAAP operating expenses, and non-GAAP net income exclude significant expenses and income that are required by GAAP to be recorded in our consolidated financial statements, including, but not limited to, (i) amortization of prepaid marketing expenses, (ii) stock-based compensation and related employer payroll taxes, and (iii) restructuring expenses. Our non-GAAP gross margin is calculated as non-GAAP gross profit divided by total revenue. Our non-GAAP operating margin is calculated as non-GAAP operating income divided by total revenue. Our non-GAAP net income per share, basic, is calculated as non-GAAP net income divided by weighted average shares outstanding – basic for purposes of calculating non-GAAP net income per share. Our non-GAAP net income per share, diluted, is calculated as non-GAAP net income divided by weighted average shares outstanding – diluted for purposes of calculating non-GAAP net income per share. Free cash flow is defined as cash and cash equivalents provided by or used in operating activities less purchases of property and equipment and capitalization of software development costs. Free cash flow margin is a non-GAAP financial measure that is calculated as free cash flow divided by total revenue.

Stock-based compensation expense includes the net effects of capitalization and amortization of stock-based compensation expense related to capitalized software. Stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of the compensation provided to our employees. Because of varying available valuation methodologies, subjective assumptions, and the variety of equity instruments that can impact a company’s non-cash expenses, we believe that providing non-GAAP financial measures that exclude stock-based compensation expense allows for meaningful comparisons between our operating results from period to period. When evaluating the performance of its business and making operating plans, Klaviyo does not consider these items (for example, when considering the impact of equity award grants, the company places a greater emphasis on the amount of overall stockholder dilution than the accounting charges associated with such grants). The amount of employer payroll tax-related items on employee stock transactions is dependent on restricted stock unit settlements, option exercises, related stock price, and other factors that are beyond Klaviyo’s control and that do not correlate to the operation of the business. The expense related to amortization of prepaid marketing expense of warrants issued to Shopify is dependent upon estimates and assumptions; therefore, Klaviyo believes non-GAAP measures that adjust for the amortization of prepaid marketing expense provide investors a consistent basis for comparison across accounting periods. Klaviyo believes that the economic impact of the partnership is best measured in the form of stockholder dilution and as such we have provided a reconciliation that shows the full dilutive impact of all outstanding equity instruments. Overall, Klaviyo believes it is useful to exclude these expenses in order to better understand the long-term performance of its core business and to facilitate comparison of its results period-over-period and to those of peer companies. All of these non-GAAP financial measures are important tools for financial and operational decision-making and for evaluating Klaviyo’s own operating results over different periods of time.

We believe that all these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to decision making by our management, who use these measures as important tools for financial and operational decision-making and for evaluating Klaviyo’s own operating results over different periods of time.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures versus their nearest GAAP equivalents. Other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. Further, stock-based compensation expense has been, and will continue to be for the foreseeable future, a significant recurring expense in Klaviyo’s business and an important part of the compensation provided to attract and retain its employees to create long-term incentive alignment with stockholders.

Klaviyo, Inc.

Condensed Consolidated Balance Sheet (Unaudited)

(In Thousands)

As of

June 30, 2025

December 31, 2024

Assets

Current assets:

Cash and cash equivalents

$

935,516

$

881,473

Restricted cash

—

375

Accounts receivable, net of allowance for doubtful accounts

58,843

43,095

Deferred contract acquisition costs, current

25,070

20,544

Prepaid expenses and other current assets

41,642

34,262

Total current assets

1,061,071

979,749

Property and equipment, net

$

56,677

$

48,200

Right-of-use assets, net

86,592

42,917

Deferred contract acquisition costs, non-current

36,799

32,527

Restricted cash, non-current

738

739

Prepaid marketing expense

143,098

153,346

Other non-current assets

12,907

15,830

Total assets

$

1,397,882

$

1,273,308

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$

22,879

$

14,579

Accrued expenses

89,563

99,828

Lease liabilities, current

19,086

20,989

Deferred revenue

82,711

64,497

Total current liabilities

214,239

199,893

Lease liabilities, non-current

80,101

32,449

Other non-current liabilities

6,790

6,979

Total liabilities

301,130

239,321

Stockholders’ equity

Preferred stock

—

—

Common stock – Series A

117

89

Common stock – Series B

183

184

Additional paid-in capital

1,980,007

1,878,899

Accumulated deficit

(883,555

)

(845,185

)

Total stockholders’ equity

1,096,752

1,033,987

Total liabilities and stockholders’ equity

$

1,397,882

$

1,273,308

Klaviyo, Inc.

Condensed Consolidated GAAP Statement of Operations (Unaudited)

(In Thousands, Except Share and Per Share Data)

Three Months Ended June 30,

2025

2024

Revenue

$

293,117

$

222,213

Cost of revenue

71,236

50,271

Gross profit

221,881

171,942

Operating expenses:

Selling and marketing

126,632

94,501

Research and development

72,459

55,735

General and administrative

54,116

35,759

Total operating expenses

253,207

185,995

Operating loss

(31,326

)

(14,053

)

Other expense

(898

)

(7

)

Interest income

9,743

9,979

Total other income

8,845

9,972

Loss before income taxes

(22,481

)

(4,081

)

Provision for income taxes

1,800

861

Net loss

$

(24,281

)

$

(4,942

)

Net loss per share attributable to Series A and Series B common stockholders, basic and diluted

$

(0.09

)

$

(0.02

)

Weighted average common shares outstanding, basic and diluted

284,928,388

265,293,214

Klaviyo, Inc.

Condensed Consolidated GAAP Statement of Operations (Unaudited)

(In Thousands, Except Share and Per Share Data)

Six Months Ended June 30,

2025

2024

Revenue

$

572,944

$

432,206

Cost of revenue

138,936

95,209

Gross profit

434,008

336,997

Operating expenses:

Selling and marketing

250,159

186,359

Research and development

141,808

111,832

General and administrative

97,117

74,951

Total operating expenses

489,084

373,142

Operating loss

(55,076

)

(36,145

)

Other (expense) income

(1,562

)

61

Interest income

19,002

19,525

Total other income

17,440

19,586

Loss before income taxes

(37,636

)

(16,559

)

Provision for income taxes

734

1,265

Net loss

$

(38,370

)

$

(17,824

)

Net loss per share attributable to Series A and Series B common stockholders, basic and diluted

$

(0.14

)

$

(0.07

)

Weighted average common shares outstanding, basic and diluted

279,674,052

263,319,667

Klaviyo, Inc.

Condensed Consolidated Statement of Cash Flows (Unaudited)

(In Thousands)

Three Months Ended June 30,

2025

2024

Operating activities

Net loss

$

(24,281

)

$

(4,942

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization expense

3,931

4,235

Non-cash operating lease costs

6,620

3,236

Amortization of deferred contract acquisition costs

7,222

4,463

Amortization of prepaid marketing expense

13,225

13,225

Bad debt (recovery) expense

(281

)

349

Stock-based compensation expense

45,404

33,506

Other

—

10

Changes in operating assets and liabilities:

Accounts receivable

(4,653

)

(6,334

)

Deferred contract acquisition costs

(11,627

)

(7,506

)

Prepaid expenses, prepaid taxes, and other assets

1,403

(494

)

Accounts payable

8,520

811

Accrued expenses

9,267

(211

)

Deferred revenue

6,524

4,263

Operating lease liabilities

(5,899

)

(3,930

)

Other non-current liabilities

350

219

Net cash provided by operating activities

55,725

40,900

Investing activities

Acquisition of property and equipment

(2,060

)

(769

)

Capitalization of software development costs

(5,247

)

(3,066

)

Net cash used in investing activities

(7,307

)

(3,835

)

Financing activities

Proceeds from exercise of common stock options

589

721

Cash paid for finance leases

—

(6

)

Proceeds from exercise of warrants

4

3

Employee taxes paid related to net share settlement of stock-based awards

(4,569

)

(1,904

)

Proceeds from employee stock purchase plan

2,641

1,873

Net cash (used in) provided by financing activities

(1,335

)

687

Net increase in cash, cash equivalents, and restricted cash

47,083

37,752

Cash, cash equivalents, and restricted cash, beginning of period

889,171

756,877

Cash, cash equivalents, and restricted cash, end of period

$

936,254

$

794,629

Klaviyo, Inc.

Condensed Consolidated Statement of Cash Flows (Unaudited)

(In Thousands)

Six Months Ended June 30,

2025

2024

Operating activities

Net loss

$

(38,370

)

$

(17,824

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization expense

8,712

8,209

Non-cash operating lease costs

12,395

6,288

Amortization of deferred contract acquisition costs

13,830

8,396

Amortization of prepaid marketing expense

26,449

26,449

Gain on derecognition of asset retirement obligation

(588

)

—

Loss on disposal of property and equipment

419

32

Bad debt expense

1,536

289

Stock-based compensation expense

83,731

69,133

Other

—

(11

)

Changes in operating assets and liabilities:

Accounts receivable

(17,283

)

(6,439

)

Deferred contract acquisition costs

(22,628

)

(14,748

)

Prepaid expenses, prepaid taxes, and other assets

(4,504

)

(7,332

)

Accounts payable

9,204

(4,250

)

Accrued expenses

(9,548

)

(455

)

Deferred revenue

18,214

6,682

Operating lease liabilities

(11,291

)

(7,845

)

Other non-current liabilities

(191

)

508

Net cash provided by operating activities

70,087

67,082

Investing activities

Acquisition of property and equipment

(4,745

)

(2,028

)

Capitalization of software development costs

(10,303

)

(5,032

)

Net cash used in investing activities

(15,048

)

(7,060

)

Financing activities

Proceeds from exercise of common stock options

1,466

4,310

Cash paid for finance leases

—

(11

)

Proceeds from exercise of warrants

7

7

Employee taxes paid related to net share settlement of stock-based awards

(8,948

)

(13,769

)

Proceeds from employee stock purchase plan

6,103

4,413

Net cash used in financing activities

(1,372

)

(5,050

)

Net increase in cash, cash equivalents, and restricted cash

53,667

54,972

Cash, cash equivalents, and restricted cash, beginning of period

882,587

739,657

Cash, cash equivalents, and restricted cash, end of period

$

936,254

$

794,629

Klaviyo, Inc.

Reconciliation of Gross Profit to Non-GAAP Gross Profit (Unaudited)

(In Thousands)

Three Months Ended June 30,

2025

2024

Gross profit

$

221,881

$

171,942

Stock-based compensation

1,955

2,621

Employer payroll tax on employee stock transactions

248

180

Non-GAAP gross profit

$

224,084

$

174,743

Gross margin

75.7

%

77.4

%

Non-GAAP gross margin

76.4

%

78.6

%

Klaviyo, Inc.

Reconciliation of Operating Loss to Non-GAAP Operating Income (Unaudited)

(In Thousands)

Three Months Ended June 30,

2025

2024

Operating loss

$

(31,326

)

$

(14,053

)

Stock-based compensation

45,404

33,506

Employer payroll tax on employee stock transactions

13,591

1,647

Amortization of prepaid marketing

13,225

13,225

Non-GAAP operating income

$

40,894

$

34,325

Operating margin

(10.7

)%

(6.3

)%

Non-GAAP operating margin

14.0

%

15.4

%

Klaviyo, Inc.

Reconciliation of Net Loss to Non-GAAP Net Income (Unaudited)

(In Thousands, Except Share and Per Share Data)

Three Months Ended June 30,

2025

2024

Net loss

$

(24,281

)

$

(4,942

)

Stock-based compensation

45,404

33,506

Employer payroll tax on employee stock transactions

13,591

1,647

Amortization of prepaid marketing

13,225

13,225

Non-GAAP net income

$

47,939

$

43,436

Non-GAAP net income per share attributable to Series A and Series B common stockholders:

Basic

$

0.17

$

0.16

Diluted

$

0.16

$

0.15

Shares used in non-GAAP per share calculations:

Basic

284,928,388

265,293,214

Diluted

304,877,359

297,466,637

Klaviyo, Inc.

Reconciliation of Operating Expenses to Non-GAAP Expenses (Unaudited)

(In Thousands)

Three Months Ended June 30,

2025

2024

Selling and marketing

$

126,632

$

94,501

Stock-based compensation

(14,329

)

(10,175

)

Employer payroll tax on employee stock transactions

(898

)

(472

)

Amortization of prepaid marketing

(13,225

)

(13,225

)

Non-GAAP Selling and marketing

$

98,180

$

70,629

Research and development

$

72,459

$

55,735

Stock-based compensation

(18,643

)

(13,053

)

Employer payroll tax on employee stock transactions

(1,109

)

(706

)

Non-GAAP Research and development

$

52,707

$

41,976

General and administrative

$

54,116

$

35,759

Stock-based compensation

(10,477

)

(7,657

)

Employer payroll tax on employee stock transactions

(11,336

)

(289

)

Non-GAAP General and administrative

$

32,303

$

27,813

Total operating expenses

$

253,207

$

185,995

Stock-based compensation

(43,449

)

(30,885

)

Employer payroll tax on employee stock transactions

(13,343

)

(1,467

)

Amortization of prepaid marketing

(13,225

)

(13,225

)

Non-GAAP Total operating expenses

$

183,190

$

140,418

Klaviyo, Inc.

Reconciliation of Operating Cash Flow to Free Cash Flow (Unaudited)

(In Thousands)

Three Months Ended June 30,

2025

2024

Cash provided by operating activities

$

55,725

$

40,900

Acquisition of property and equipment

(2,060

)

(769

)

Capitalization of software development costs

(5,247

)

(3,066

)

Employer taxes for executive option exercises

10,833

—

Free cash flow

$

59,251

$

37,065

Operating cash flow margin

19.0

%

18.4

%

Free cash flow margin

20.2

%

16.7

%

Klaviyo, Inc.

Reconciliation of Gross Profit to Non-GAAP Gross Profit (Unaudited)

(In Thousands)

Six Months Ended June 30,

2025

2024

Gross profit

$

434,008

$

336,997

Stock-based compensation

3,712

4,999

Employer payroll tax on employee stock transactions

669

364

Non-GAAP gross profit

$

438,389

$

342,360

Gross margin

75.8

%

78.0

%

Non-GAAP gross margin

76.5

%

79.2

%

Klaviyo, Inc.

Reconciliation of Operating Loss to Non-GAAP Operating Income (Unaudited)

(In Thousands)

Six Months Ended June 30,

2025

2024

Operating loss

$

(55,076

)

$

(36,145

)

Stock-based compensation

83,731

69,133

Employer payroll tax on employee stock transactions

18,201

4,230

Amortization of prepaid marketing

26,449

26,449

Non-GAAP operating income

$

73,305

$

63,667

Operating margin

(9.6

)%

(8.4

)%

Non-GAAP operating margin

12.8

%

14.7

%

Klaviyo, Inc.

Reconciliation of Net Loss to Non-GAAP Net Income (Unaudited)

(In Thousands, Except Share and Per Share Data)

Six Months Ended June 30,

2025

2024

Net loss

$

(38,370

)

$

(17,824

)

Stock-based compensation

83,731

69,133

Employer payroll tax on employee stock transactions

18,201

4,230

Amortization of prepaid marketing

26,449

26,449

Non-GAAP net income

$

90,011

$

81,988

Non-GAAP net income per share attributable to Series A and Series B common stockholders:

Basic

$

0.32

$

0.31

Diluted

$

0.29

$

0.28

Shares used in non-GAAP per share calculations:

Basic

279,674,052

263,319,667

Diluted

305,291,843

295,680,113

Klaviyo, Inc.

Reconciliation of Operating Expenses to Non-GAAP Expenses (Unaudited)

(In Thousands)

Six Months Ended June 30,

2025

2024

Selling and marketing

$

250,159

$

186,359

Stock-based compensation

(26,426

)

(21,459

)

Employer payroll tax on employee stock transactions

(2,250

)

(1,118

)

Amortization of prepaid marketing

(26,449

)

(26,449

)

Non-GAAP Selling and marketing

$

195,034

$

137,333

Research and development

$

141,808

$

111,832

Stock-based compensation

(34,831

)

(26,174

)

Employer payroll tax on employee stock transactions

(3,225

)

(1,952

)

Non-GAAP Research and development

$

103,752

$

83,706

General and administrative

$

97,117

$

74,951

Stock-based compensation

(18,762

)

(16,501

)

Employer payroll tax on employee stock transactions

(12,057

)

(796

)

Non-GAAP General and administrative

$

66,298

$

57,654

Total operating expenses

$

489,084

$

373,142

Stock-based compensation

(80,019

)

(64,134

)

Employer payroll tax on employee stock transactions

(17,532

)

(3,866

)

Amortization of prepaid marketing

(26,449

)

(26,449

)

Non-GAAP Total operating expenses

$

365,084

$

278,693

Klaviyo, Inc.

Reconciliation of Operating Cash Flow to Free Cash Flow (Unaudited)

(In Thousands)

Six Months Ended June 30,

2025

2024

Cash provided by operating activities

$

70,087

$

67,082

Acquisition of property and equipment

(4,745

)

(2,028

)

Capitalization of software development costs

(10,303

)

(5,032

)

Employer taxes for executive option exercises

10,833

—

Free cash flow

$

65,872

$

60,022

Operating cash flow margin

12.2

%

15.5

%

Free cash flow margin

11.5

%

13.9

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20250805035202/en/

Source: Klaviyo, Inc.

Tag: IR

Investor Relations

Andrew Zilli

[email protected]

Press

Danielle Killick

[email protected]

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Professional Services Data Management Business Data Analytics Technology Finance Artificial Intelligence

MEDIA:

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Posted on August 5, 2025 5:53 pm
Methode Electronics to Present at the J.P. Morgan Auto Conference

CHICAGO, Ill., Aug. 05, 2025 (GLOBE NEWSWIRE) — Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom-engineered solutions for user interface, lighting, and power distribution applications, will present at the J.P. Morgan Auto Conference on Tuesday, August 12th at 12:40 p.m. EDT.

A simultaneous webcast can be accessed on the company’s website, www.methode.com, by selecting the Investors page. The webcast will also be archived on the same Investors page.

About Methode Electronics, Inc.

Methode Electronics, Inc. (NYSE: MEI) is a leading global supplier of custom-engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East and Asia. We design, engineer, and produce mechatronic products for OEMs utilizing our broad range of technologies for user interface, lighting system, power distribution and sensor applications.

Our solutions are found in the end markets of transportation (including automotive, commercial vehicle, e-bike, aerospace, bus, and rail), cloud computing infrastructure, construction equipment, and consumer appliance. Our business is managed on a segment basis, with those segments being Automotive, Industrial, and Interface.

For Methode Electronics, Inc.

Robert K. Cherry
Vice President Investor Relations
[email protected]
708-457-4030

Posted on August 5, 2025 5:51 pm
Coupang Announces Results for Second Quarter 2025

Coupang Announces Results for Second Quarter 2025

Net Revenues of $8.5 billion, up 16% YoY and 19% on an FX-neutral basis

Gross Profit of $2.6 billion, up 20% YoY and 22% on an FX-neutral basis

Operating income of $149 million, up $174 million YoY

SEATTLE–(BUSINESS WIRE)–
Coupang, Inc. (NYSE: CPNG) today announced financial results for its second quarter ended June 30, 2025.

Q2 2025 Consolidated Highlights:

Net revenues were $8.5 billion, up 16% YoY on a reported basis and 19% YoY on an FX-neutral basis.

Gross profit increased 20% YoY and 22% YoY on an FX-neutral basis to $2.6 billion. Gross profit margin was 30.0%, an improvement of 79 bps YoY.

Operating income was $149 million, an increase of $174 million over last year, or $53 million excluding the impact of the KFTC administrative fine recorded last year.

Net income was $31 million and net income attributable to Coupang stockholders was $32 million, an increase of $109 million from last year.

Diluted EPS was $0.02, an increase of $0.06 over last year.

Adjusted EBITDA for the quarter was $428 million with a margin of 5.0%, up 51 bps from last year.

Operating cash flow for the trailing twelve months was $1.9 billion, a decrease of $297 million YoY, and free cash flow was $784 million for the trailing twelve months, a decrease of $729 million YoY. The decrease in free cash flow was primarily driven by timing of capital expenditures as well as impacts of certain working capital fluctuations in the current and previous trailing twelve-month periods that we expect to normalize by the end of the year.

Q2 2025 Segment Highlights:

Product Commerce segment net revenues were $7.3 billion, up 14% YoY on a reported basis and 17% YoY on an FX-neutral basis.

Product Commerce Active Customers reached 23.9 million, growing 10% YoY.

Product Commerce gross profit was $2.4 billion, up 23% YoY on a reported basis and 26% YoY on an FX-neutral basis. Gross profit margin was 32.6%, an increase of 227 bps YoY.

Product Commerce segment adjusted EBITDA was $663 million, up $133 million YoY, with a margin of 9.0%, up 80 bps YoY.

Developing Offerings segment net revenues were $1.2 billion, up 33% YoY both on a reported basis and FX-neutral basis.

Developing Offerings segment adjusted EBITDA was a loss of $235 million, an increase of $35 million YoY.

Second Quarter 2025 Results

Consolidated Financial Summary

(in millions, except net revenues per Product Commerce Active Customer and earnings per share)

Three Months Ended June 30,

2025

2024

% Change

Total net revenues

$

8,524

$

7,323

16

%

Total net revenues growth, constant currency⁽¹⁾

19

%

Net revenues per Product Commerce Active Customer

$

307

$

296

4

%

Net revenues per Product Commerce Active Customer, constant currency⁽¹⁾

$

315

6

%

Product Commerce Active Customers

23.9

21.7

10

%

Gross profit⁽²⁾

$

2,561

$

2,142

20

%

Gross profit growth, constant currency⁽¹⁾⁽²⁾

22

%

Operating income

$

149

$

(25

)

NM⁽³⁾

Net income (loss)

$

31

$

(105

)

NM⁽³⁾

Net income attributable to Coupang stockholders

$

32

$

(77

)

NM⁽³⁾

Adjusted EBITDA⁽¹⁾

$

428

$

330

30

%

Earnings per share, basic and diluted

$

0.02

$

(0.04

)

NM⁽³⁾

Net cash provided by operating activities

$

545

$

664

(18

)%

Free cash flow⁽¹⁾

$

247

$

488

(49

)%

Segment Information

Three Months Ended June 30,

(in millions)

2025

2024

% Change

Product Commerce

Net revenues

$

7,334

$

6,431

14

%

Net revenues growth, constant currency⁽¹⁾

17

%

Gross profit⁽²⁾

$

2,390

$

1,950

23

%

Gross profit growth, constant currency⁽¹⁾⁽²⁾

26

%

Segment adjusted EBITDA

$

663

$

530

25

%

Developing Offerings

Net revenues

$

1,190

$

892

33

%

Net revenues growth, constant currency⁽¹⁾

33

%

Gross profit⁽²⁾

$

171

$

192

(11

)%

Gross profit growth, constant currency⁽¹⁾⁽²⁾

(10

)%

Segment adjusted EBITDA

$

(235

)

$

(200

)

18

%

(1)

Net revenues growth, constant currency, net revenues per Product Commerce Active Customer, constant currency, gross profit growth, constant currency, adjusted EBITDA, and free cash flow are non-GAAP financial measures as defined by the Securities and Exchange Commission (the “SEC”). See the “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures” sections herein for more information regarding our use of these measures and reconciliations to the most directly comparable financial measures calculated in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

(2)

Gross profit is calculated as total net revenues minus cost of sales.

(3)

Non-meaningful.

Webcast and Conference Call

Coupang, Inc. will host a conference call to discuss second quarter results on August 5, 2025 at 2:30 PM PT/ 5:30 PM ET. A live webcast of the conference call will be available on our Investor Relations website, ir.aboutcoupang.com, and a replay of the conference call will be available for at least three months. This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable U.S. GAAP measures, as well as our second quarter earnings presentation, are also available on that site.

About Coupang

Coupang is a technology and Fortune 150 company listed on the New York Stock Exchange (NYSE: CPNG) that provides retail, restaurant delivery, video streaming, and fintech services to customers around the world under brands that include Coupang, Eats, Play, Rocket Now, and Farfetch.

FORWARD-LOOKING STATEMENTS

This earnings release or related management commentary may contain statements that may be deemed to be “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Act”), that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws.

All statements other than statements of historical facts contained in this earnings release and related management commentary, including statements about our business and growth strategies, anticipated or target margins, cash flows, and other operating or financial results, our planned investments in new products and offerings, and their anticipated outcomes, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “toward,” “will,” “shall,” “goal,” “objective,” “seek,” “strategy,” “future,” “continue,” or “would,” or the negative of these words or other similar terms or expressions. We have based the forward-looking statements contained in this earnings release and related management commentary on our current expectations and projections about future events and trends that we believe may affect our industry, business, financial condition, and results of operations. Actual results and outcomes could differ materially for a variety of reasons, including, among others, risks and uncertainties regarding the continued growth of the retail market and changes in consumer preferences and spending patterns, the increased acceptance of online transactions by potential customers, competition in our industry, managing our growth and expansion into new markets and offerings, risks associated with current and future acquisitions, mergers, dispositions, joint ventures or investments, potential fluctuations in our financial performance, the extent to which we owe income or other taxes, our ability to retain existing suppliers and to add new suppliers, our market position, our operation and management of our fulfillment and delivery infrastructure, legal and regulatory developments, the outcomes of any claims, litigation, audits, inspections and investigations, and the impact of global economic factors including inflation, foreign currency exchange rates, geopolitical events, and tariffs and other trade barriers. The forward-looking statements contained in this earnings release and related management commentary are also subject to other risks and uncertainties that could cause actual results to differ from the results predicted. For additional information on other potential risks and uncertainties that could cause actual results to differ from the results predicted, please see our most recent Annual Report on Form 10-K and subsequent SEC filings. All forward-looking statements in this earnings release or related management commentary are based on information available to Coupang and assumptions and beliefs as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.

Investors and others should note that we may announce material business and financial information to our investors using our investor relations website (ir.aboutcoupang.com), our filings with the SEC, webcasts, press releases, and conference calls. We use these mediums, including our investor relations website, to communicate with investors and the general public about our company, our offerings, and other issues. It is possible that the information that we make available on our investor relations website may be deemed to be material information. We therefore encourage investors and others interested in our company to review the information that we make available on our investor relations website.

COUPANG, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

Three Months Ended

June 30,

Six Months Ended

June 30,

(in millions, except per share amounts)

2025

2024

2025

2024

Net retail sales

$

6,507

$

5,779

$

12,595

$

11,674

Net other revenue

2,017

1,544

3,837

2,763

Total net revenues

8,524

7,323

16,432

14,437

Cost of sales

5,963

5,181

11,555

10,366

Operating, general and administrative

2,412

2,167

4,574

4,056

Total operating cost and expenses

8,375

7,348

16,129

14,422

Operating income (loss)

149

(25

)

303

15

Interest income

51

53

100

108

Interest expense

(25

)

(37

)

(48

)

(64

)

Other income, net

19

12

55

3

Income before income taxes

194

3

410

62

Income tax expense

163

108

265

191

Net income (loss)

31

(105

)

145

(129

)

Net (loss) income attributable to noncontrolling interests

(1

)

(28

)

6

(57

)

Net income (loss) attributable to Coupang stockholders

32

(77

)

139

(72

)

Earnings per share

Basic

$

0.02

$

(0.04

)

$

0.08

$

(0.04

)

Diluted

$

0.02

$

(0.04

)

$

0.08

$

(0.04

)

Weighted-average shares outstanding

Basic

1,817

1,789

1,812

1,791

Diluted

1,855

1,789

1,847

1,791

COUPANG, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

(in millions)

June 30, 2025

December 31, 2024

Assets

Cash and cash equivalents

$

6,796

$

5,879

Restricted cash

93

151

Accounts receivable, net

499

407

Inventories

2,285

2,099

Prepaids and other current assets

503

458

Total current assets

10,176

8,994

Property and equipment, net

3,424

2,813

Operating lease right-of-use assets

2,540

2,016

Intangible assets, net

210

271

Deferred tax assets

646

622

Long-term lease deposits and other

835

628

Total assets

$

17,831

$

15,344

Liabilities, redeemable noncontrolling interests, and equity

Accounts payable

$

6,487

$

5,554

Accrued expenses

430

461

Deferred revenue

188

141

Short-term borrowings

785

479

Current portion of long-term debt

169

66

Current portion of long-term operating lease obligations

505

422

Other current liabilities

805

593

Total current liabilities

9,369

7,716

Long-term debt

850

988

Long-term operating lease obligations

2,270

1,770

Defined severance benefits and other

657

693

Total liabilities

13,146

11,167

Commitments and contingencies

Redeemable noncontrolling interests

—

75

Equity

Common stock

—

—

Class A — shares authorized 10,000, outstanding 1,661 and 1,643

Class B — shares authorized 250, outstanding 158 and 158

Additional paid-in capital

9,025

8,736

Accumulated other comprehensive loss

(250

)

(404

)

Accumulated deficit

(4,090

)

(4,229

)

Noncontrolling interests

—

(1

)

Total equity

4,685

4,102

Total liabilities, redeemable noncontrolling interests, and equity

$

17,831

$

15,344

COUPANG, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

Six Months Ended June 30,

(in millions)

2025

2024

Operating activities

Net income (loss)

$

145

$

(129

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

248

201

Provision for severance benefits

115

90

Equity-based compensation

234

197

Non-cash operating lease expense

237

211

Deferred income taxes

23

103

Other

89

118

Change in operating assets and liabilities, net of acquisition:

Accounts receivable, net

(80

)

23

Inventories

(110

)

(163

)

Other assets

(276

)

(132

)

Accounts payable

370

351

Accrued expenses

(55

)

111

Other liabilities

(41

)

(105

)

Net cash provided by operating activities

899

876

Investing activities

Purchases of property and equipment

(538

)

(285

)

Proceeds from sale of property and equipment

2

4

Net cash acquired in acquisition

—

68

Other investing activities

24

(82

)

Net cash used in investing activities

(512

)

(295

)

Financing activities

Proceeds from issuance of common stock, equity-based compensation plan

3

1

Repurchase of Class A common stock

—

(178

)

Proceeds from short-term borrowings and long-term debt

781

104

Repayment of short-term borrowings and long-term debt

(649

)

(62

)

Other financing activities

(27

)

55

Net cash provided by (used in) financing activities

108

(80

)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

363

(304

)

Net increase in cash and cash equivalents and restricted cash

858

197

Cash and cash equivalents and restricted cash, as of beginning of period

6,031

5,597

Cash and cash equivalents and restricted cash, as of end of period

$

6,889

$

5,794

Supplemental Financial Information

Share Information

As of June 30,

(in millions)

2025

2024

Outstanding common stock

1,819

1,790

Outstanding equity-based awards

81

81

Outstanding common stock and equity-based awards

1,900

1,871

Key Business Metrics and Non-GAAP Financial Measures

We review the key business and financial metrics discussed below. We use these measures to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.

Key Business Metrics

Net Revenues per Product Commerce Active Customer and Constant Currency Net Revenues per Product Commerce Active Customer

Net revenues per Product Commerce Active Customer is the net revenues generated in a period divided by the total number of Product Commerce Active Customers in that period. A key driver of growth is increasing the frequency and the level of spend of customers who are shopping on our Product Commerce apps or websites. We therefore view net revenues per Product Commerce Active Customer as a key indicator of engagement and retention of our customers and our ability to drive future revenue growth, though there may be a short-term dilutive impact when a large number of new Product Commerce active customers are added in a recent period.

Constant currency net revenues per Product Commerce Active Customer is the total Product Commerce net revenues generated in a period translated using the prior period exchange rate to exclude the effect of foreign exchange rate movements divided by the total number of Product Commerce Active Customers in that period. Constant currency net revenues per Product Commerce Active Customer is a key indicator to evaluate net revenues per Product Commerce Active Customer between periods as it excludes the effects of foreign currency volatility that are not indicative of customer engagement and retention.

Product Commerce Active Customers

As of the last date of each quarterly reported period, we determine our number of Product Commerce Active Customers by counting the total number of individual customers who have ordered at least once directly from our Product Commerce apps or websites during the relevant quarterly period. A customer is anyone who has created an account on our apps or websites, identified by a unique email address. The change in Product Commerce Active Customers in a reported period captures both the inflow of new customers as well as the outflow of existing customers who have not made a purchase in the period. We view the number of Product Commerce Active Customers as an indicator of future growth in our net revenue, the reach of our network, the awareness of our brand, and the engagement of our customers.

Three Months Ended June 30,

(in millions, except net revenues per Product Commerce Active Customer)

2025

2024

% Change

Net revenues per Product Commerce Active Customer

$

307

$

296

4

%

Net revenues per Product Commerce Active Customer (Constant Currency)

$

315

6

%

Product Commerce Active Customers

23.9

21.7

10

%

Non-GAAP Financial Measures

We report our financial results in accordance with U.S. GAAP. However, management believes that certain non-GAAP financial measures provide investors with additional useful information in evaluating our performance. These non-GAAP financial measures may be different than similarly titled measures used by other companies.

Our non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with U.S. GAAP. Non-GAAP measures have limitations in that they do not reflect all the amounts associated with our results of operations as determined in accordance with U.S. GAAP. These measures should only be used to evaluate our results of operations in conjunction with the corresponding U.S. GAAP measures.

Non-GAAP Measure

Definition

How We Use The Measure

Adjusted EBITDA

• Net income (loss), excluding the effects of:

depreciation and amortization,

interest expense,

interest income,

other income (expense), net,

income tax expense (benefit),

equity-based compensation,

impairments, and

other items not reflective of our ongoing operations.

• Provides information to management to evaluate and assess our performance and allocate internal resources.

• We believe Adjusted EBITDA and Adjusted EBITDA Margin are frequently used by investors and other interested parties in evaluating companies in the retail industry for period-to-period comparisons as they remove the impact of certain items that are not representative of our ongoing business, such as material non-cash items, acquisition-related transaction and restructuring costs, significant costs related to certain non-ordinary course legal and regulatory matters, and certain variable charges.

Adjusted EBITDA Margin

• Adjusted EBITDA as a percentage of total net revenues.

Constant Currency Revenue and Constant Currency Gross Profit

• Constant currency information compares results between periods as if exchange rates had remained constant.

• We define constant currency revenue and constant currency gross profit as total revenue and gross profit, respectively, excluding the effect of foreign exchange rate movements, and use it to determine the constant currency revenue growth and constant currency gross profit growth on a comparative basis.

• Constant currency revenue and constant currency gross profit are calculated by translating current period revenues and gross profits using the prior period exchange rate.

• The effect of currency exchange rates on our business is an important factor in understanding period-to-period comparisons. Our financial reporting currency is the U.S. dollar (“USD”) and changes in foreign exchange rates can significantly affect our reported results and consolidated trends. For example, our business generates sales predominantly in Korean Won (“KRW”), which are favorably affected as the USD weakens relative to the KRW, and unfavorably affected as the USD strengthens relative to the KRW.

• We use constant currency revenue and constant currency revenue growth, constant currency gross profit and constant currency gross profit growth for financial and operational decision-making and as a means to evaluate comparisons between periods. We believe the presentation of our results on a constant currency basis in addition to U.S. GAAP results helps improve the ability to understand our performance because they exclude the effects of foreign currency volatility that are not indicative of our actual results of operations.

Constant Currency Revenue Growth and Constant Currency Gross Profit Growth

• Constant currency revenue growth and constant currency gross profit growth (as percentages) are calculated by determining the increase in current period revenue and gross profit over prior period revenue and gross profit, where current period foreign currency revenue and gross profit are translated using prior period exchange rates.

Free Cash Flow

• Cash flow from operations

Less: purchases of property and equipment,

Plus: proceeds from sale of property and equipment.

• Provides information to management and investors about the amount of cash generated from our ongoing operations that, after purchases and sales of property and equipment, can be used for strategic initiatives, including investing in our business and strengthening our balance sheet, including paying down debt, repurchasing shares of our Class A Common stock, and paying dividends to stockholders.

Reconciliations of Non-GAAP Measures

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future. Although, it is important to note that these factors could be material to Coupang’s results computed in accordance with GAAP. Certain amounts may not foot due to rounding.

The following tables present the reconciliations from each U.S. GAAP measure to its corresponding non-GAAP measure for the periods noted:

Constant Currency Revenue and Constant Currency Revenue Growth

Three Months Ended June 30,

Year over Year Growth

2025

2024

(in millions)

As Reported

Exchange Rate Effect

Constant Currency Basis

As Reported

As Reported

Constant Currency Basis

Consolidated

Net retail sales

$

6,507

$

138

$

6,645

$

5,779

13

%

15

%

Net other revenue

2,017

43

2,060

1,544

31

%

33

%

Total net revenues

$

8,524

$

181

$

8,705

$

7,323

16

%

19

%

Net Revenues by Segment

Product Commerce

$

7,334

$

183

$

7,517

$

6,431

14

%

17

%

Developing Offerings

1,190

(2

)

1,188

892

33

%

33

%

Total net revenues

$

8,524

$

181

$

8,705

$

7,323

16

%

19

%

Constant Currency Gross Profit and Constant Currency Gross Profit Growth

Three Months Ended June 30,

Year over Year Growth

2025

2024

(in millions)

As Reported

Exchange Rate Effect

Constant Currency Basis

As Reported

As Reported

Constant Currency Basis

Gross Profit by Segment

Product Commerce

$

2,390

$

61

$

2,451

$

1,950

23

%

26

%

Developing Offerings

171

1

172

192

(11

)%

(10

)%

Gross profit

$

2,561

$

62

$

2,623

$

2,142

20

%

22

%

Free Cash Flow

Three Months Ended

June 30,

Trailing Twelve Months Ended June 30,

(in millions)

2025

2024

2025

2024

Net cash provided by operating activities

$

545

$

664

$

1,909

$

2,206

Adjustments:

Purchases of land and buildings

(49

)

(33

)

(300

)

(118

)

Purchases of equipment

(250

)

(145

)

(832

)

(591

)

Total purchases of property and equipment

(299

)

(178

)

(1,132

)

(709

)

Proceeds from sale of property and equipment

1

2

7

16

Total adjustments

$

(298

)

$

(176

)

$

(1,125

)

$

(693

)

Free cash flow

$

247

$

488

$

784

$

1,513

Net cash used in investing activities

$

(299

)

$

(178

)

$

(1,036

)

$

(710

)

Net cash provided by (used in) financing activities

$

92

$

(132

)

$

119

$

(210

)

Adjusted EBITDA and Adjusted EBITDA Margin

Three Months Ended June 30,

Trailing Twelve Months Ended June 30,

(in millions)

2025

2024

2025

2024

Total net revenues

$

8,524

$

7,323

$

32,263

$

27,182

Net income attributable to Coupang stockholders

32

(77

)

365

1,051

Net income (loss) attributable to noncontrolling interests

(1

)

(28

)

(25

)

(57

)

Net income (loss)

31

(105

)

340

994

Net income (loss) margin

0.4

%

(1.4

)%

1.1

%

3.7

%

Adjustments:

Depreciation and amortization

126

106

480

345

Interest expense

25

37

124

90

Interest income

(51

)

(53

)

(208

)

(212

)

Income tax expense (income)

163

108

481

(645

)

Other (income) expense, net

(19

)

(12

)

(13

)

6

Acquisition and restructuring related losses, net

40

19

75

77

KFTC administrative fine

—

121

—

121

Fulfillment Center Fire insurance gain

—

—

(175

)

—

Equity-based compensation

113

109

470

367

Adjusted EBITDA

$

428

$

330

$

1,574

$

1,143

Adjusted EBITDA margin

5.0

%

4.5

%

4.9

%

4.2

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20250805957728/en/

Investor Contact:

Coupang IR

[email protected]

Media Contact:

Coupang PR

[email protected]

KEYWORDS: South Korea United States North America Asia Pacific Washington

INDUSTRY KEYWORDS: Restaurant/Bar Internet Professional Services Technology Apps/Applications Food/Beverage Fintech Retail

MEDIA:

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