Market Newsdesk

January 29, 2025 7:13 am

Hepsiburada Announces the Closing of the Change of Control Transaction between Joint Stock Company Kaspi.kz and the Founder of Hepsiburada and Other Affiliates

ISTANBUL, Jan. 29, 2025 (GLOBE NEWSWIRE) — D-MARKET Electronic Services & Trading (d/b/a “Hepsiburada”) (NASDAQ: HEPS), announces the closing (the “Closing”), on January 29, 2025 (the “Closing Date”), of the previously disclosed transaction between Joint Stock Company Kaspi.kz, a joint stock company incorporated under the laws of Kazakhstan (the “Buyer”), and Hanzade Vasfiye Doğan Boyner, Hepsiburada’s founder, Vuslat Doğan Sabancı, Yaşar Begümhan Doğan Faralyalı, Arzuhan Doğan Yalçındağ and Işıl Doğan (collectively, the “Sellers”), pursuant to the Stock Purchase Agreement (the “Agreement”) entered into on October 17, 2024 by and among the Buyer and the Sellers.

In accordance with the terms of the Agreement, the Buyer has purchased from the Sellers all of the outstanding Class A shares and Class B shares of the Company held by the Sellers (the “Shares”), representing 65.41% of the total outstanding shares of Hepsiburada. The Buyer purchased the Shares for a total consideration of approximately $1,127 million, of which $600 million was paid in cash to the Sellers on the Closing Date, and $526.9 million of Deferred Cash Consideration (as defined in the Agreement) will be paid to the Sellers in cash no later than six months after the Closing Date. As collateral with respect to the Deferred Cash Consideration, the Buyer has pledged 65,199,658 Class B shares of Hepsiburada in favor of the Sellers. As of the Closing, the Buyer has become the new controlling shareholder of Hepsiburada.

About Hepsiburada

Hepsiburada is a leading e-commerce technology platform in Türkiye, operating through a hybrid model that combines first-party direct sales (1P) and a third-party marketplace (3P) with approximately 100 thousand merchants.

With its vision of leading the digitalization of commerce, Hepsiburada serves as a reliable, innovative and purpose-driven companion in consumers’ daily lives. Hepsiburada’s e-commerce platform offers a broad ecosystem of capabilities for merchants and consumers including last-mile delivery, fulfillment services, advertising solutions, cross-border sales, payment services and affordability solutions. Hepsiburada’s integrated fintech platform, Hepsipay, provides secure payment solutions, including digital wallets, general-purpose loans, buy now pay later (BNPL) and one-click checkout, enhancing shopping convenience for consumers across online and offline while driving higher sales conversions for merchants.

Since its founding in 2000, Hepsiburada has been purpose-driven, leveraging its digital capabilities to empower women in the Turkish economy. In 2017, Hepsiburada launched the ‘Technology Empowerment for Women Entrepreneurs’ program, which has supported nearly 57.5 thousand female entrepreneurs across Türkiye in reaching millions of customers.

Investor Relations Contact

[email protected]

Media Contact

[email protected]

Forward-Looking Statements

This press release includes 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 Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, and encompasses all statements, other than statements of historical fact contained in this press release. These forward-looking statements can be identified by terminology such as “may,” “could,” “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “targets,” “likely to”, “understands” and similar statements. These forward-looking statements are based on management’s current expectations. However, 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, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors and circumstances that may cause Hepsiburada’s actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including conditions in the U.S. capital markets, negative global economic conditions, potential negative developments resulting from epidemics or natural disasters, other negative developments in Hepsiburada’s business or unfavorable legislative or regulatory developments. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. For a discussion of additional factors that may affect the outcome of such forward-looking statements, see our 2023 annual report filed with the SEC on Form 20-F on April 30, 2024 (Commission File Number: 001-40553), and in particular the “Risk Factors” section, as well as the other documents filed with or furnished to the SEC by Hepsiburada from time to time. Copies of these filings are available online from the SEC at www.sec.gov, or on the SEC Filings section of our Investor Relations website at https://investors.hepsiburada.com. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. These forward-looking statements should not be relied upon as representing Hepsiburada’s views as of any date subsequent to the date of this press release. All forward-looking statements in this press release are based on information currently available to Hepsiburada, and Hepsiburada and its authorized representatives assume no obligation to update these forward-looking statements in light of new information or future events. Accordingly, undue reliance should not be placed upon the forward-looking statements.

January 29, 2025 7:13 am

T-Mobile Delivers Best-in-Class Customer Results in 2024 as More People Joined the Un-carrier Than Ever Before, and Is Poised for Another Exciting Year of Growth in 2025

T-Mobile Delivers Best-in-Class Customer Results in 2024 as More People Joined the Un-carrier Than Ever Before, and Is Poised for Another Exciting Year of Growth in 2025

Highest-Ever Postpaid Phone Gross Additions and Record Low Postpaid Phone Churn Drive the Third Straight Year of Over 3 Million Postpaid Phone Net Customer Additions Alongside Industry-Leading Service Revenue and Cash Flow Growth, and Highest-Ever Diluted EPS, Enabling Tremendous Shareholder Returns of $14.4 Billion in 2024

BELLEVUE, Wash.–(BUSINESS WIRE)–
T-Mobile US, Inc. (NASDAQ: TMUS):

Industry-Leading Customer Growth Fueled by Best Network, Best Value and Best Experience Combination⁽¹⁾

Postpaid net account additions of 263 thousand in Q4 2024 and 1.1 million in 2024, both industry best
Postpaid net customer additions of 1.9 million in Q4 2024 and 6.1 million in 2024, both industry best
Postpaid phone net customer additions of 903 thousand in Q4 2024 and 3.1 million in 2024, both industry best
Postpaid phone churn of 0.92% in Q4 2024, tied for lowest Q4, and 0.86% in 2024, best FY in company history
High Speed Internet net customer additions of 428 thousand in Q4 2024 and 1.7 million in 2024, both industry best

Translating Industry-Leading Customer Growth into Industry-Leading Financial Performance

Service revenues of $16.9 billion in Q4 2024 and $66.2 billion in 2024, both industry-leading growth
Postpaid service revenues of $13.5 billion in Q4 2024 and $52.3 billion in 2024, both industry-leading growth
Net income of $3.0 billion in Q4 2024 and $11.3 billion in 2024, highest FY in company history
Diluted earnings per share (“EPS”) of $2.57 in Q4 2024 and $9.66 in 2024, highest FY in company history
Core Adjusted EBITDA⁽²⁾ of $7.9 billion in Q4 2024 and $31.8 billion in 2024, both industry-leading growth
Net cash provided by operating activities of $5.5 billion in Q4 2024 and $22.3 billion in 2024, industry-leading FY growth
Adjusted Free Cash Flow⁽²⁾ of $4.1 billion in Q4 2024 and $17.0 billion in 2024, industry-leading FY growth
Total cumulative stockholder returns⁽³⁾ of $31.4 billion, including $14.4 billion in 2024, split across repurchases of $11.1 billion and cash dividends of $3.3 billion, with up to an additional $14.0 billion authorized through the end of 2025

Extending Overall Network Lead with Best Assets, Customer Centricity and Technology Leadership

For the third year in a row, T-Mobile won all five overall network experience categories from Opensignal, along with 5G performance categories, consistent quality experience, and was unbeaten for reliability experience
The company also won awards for the fastest, most consistent, and most available 5G network, alongside highest ranking consumer sentiment and best gaming and mobile video streaming experience from Ookla
The company’s end-to-end, high-capacity 5G network continues to differentiate itself from competition and translate into real business outcomes, including a significant contract with the City of New York, including wireless services to be provided to its Public Safety network, which has the highest standards and most complex needs in the country

Strong Outlook for 2025 with Continued Industry-Leading Growth

Postpaid net customer additions are expected to be between 5.5 million and 6.0 million, highest-ever guidance range issued at the beginning of the year
Core Adjusted EBITDA⁽²⁾is expected to be between $33.1 billion and $33.6 billion
Net cash provided by operating activities is expected to be between $26.8 billion and $27.5 billion and Adjusted Free Cash Flow⁽²⁾ is expected to be between $17.3 billion and $18.0 billion

T-Mobile US, Inc. (NASDAQ: TMUS) reported fourth quarter and full-year 2024 results today, delivering industry-leading customer growth across the board, including industry-best growth in postpaid accounts, total postpaid, postpaid phone, prepaid, and High Speed Internet customers. The company also tied its lowest-ever Q4 postpaid phone churn, and delivered a record low postpaid phone churn for the full year alongside its highest-ever postpaid phone gross additions. The company translated its industry-leading customer growth into industry-best service revenue and cash flow growth in 2024 while fueling stockholder returns of $14.4 billion, executing against its ambitious multiyear growth plan.

“By putting customers first, T-Mobile delivered another monster Q4 that punctuated an amazing growth year with best-in-class results across wireless and broadband,” said Mike Sievert, CEO of T-Mobile. “In 2024, more new postpaid customers chose the Un-carrier than ever before, and we had our lowest ever full-year postpaid phone churn, leading to our third year of more than 3 million postpaid phone net additions. Now, building on this incredible momentum, 2025 is poised to be even more exciting, and because of this, we’re issuing the strongest start-of-year postpaid net additions guide in our history. We’ve already hit the ground running on our ambitious plans to give customers the kind of new, transformative experiences no one else can, and we’re just getting started.”

___________________________________________________________
(1)		AT&T Inc. does not disclose postpaid net account additions. Comcast and Charter do not disclose postpaid phone net customer additions. Industry-leading claims are based on consensus expectations if results are not yet reported.
(2)		Core Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures tables. We are not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect Net income, including, but not limited to, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.
(3)		Beginning in Q3 2022 through December 31, 2024.

Industry-Leading Customer Growth Fueled by Best Network, Best Value and Best Experience Combination⁽¹⁾

Postpaid net account additions of 263 thousand in Q4 2024 and 1.1 million in 2024.
Postpaid net customer additions of 1.9 million in Q4 2024 and 6.1 million in 2024.
Postpaid phone net customer additions of 903 thousand in Q4 2024 and 3.1 million in 2024. Postpaid phone churn was 0.92% in Q4 2024 and 0.86% in 2024.
Prepaid net customer additions of 103 thousand in Q4 2024 and 258 thousand in 2024. Prepaid churn was 2.85% in Q4 2024 and 2.73% in 2024.
High Speed Internet net customer additions of 428 thousand in Q4 2024 and 1.7 million in 2024. T-Mobile ended the year with 6.4 million High Speed Internet customers.
Total net customer additions were 2.0 million in Q4 2024 and 6.3 million in 2024. Total customer connections increased to a record high of 129.5 million.

	Quarter						Year Ended December 31,
(in thousands, except churn)	Q4 2024		Q3 2024		Q4 2023		2024		2023
Postpaid net account additions	263		315		299		1,097		1,271
Total net customer additions	2,036		1,599		1,623		6,324		5,932
Postpaid net customer additions	1,933		1,575		1,570		6,066		5,650
Postpaid phone net customer additions	903		865		934		3,077		3,082
Postpaid other net customer additions ⁽²⁾	1,030		710		636		2,989		2,568
Prepaid net customer additions ⁽²⁾	103		24		53		258		282
Total customers, end of period ^{(2) (3)}	129,528		127,492		119,700		129,528		119,700
Postpaid phone churn	0.92	%	0.86	%	0.96	%	0.86	%	0.87	%
Prepaid churn	2.85	%	2.78	%	2.86	%	2.73	%	2.76	%
High Speed Internet net customer additions	428		415		541		1,654		2,130
Total High Speed Internet customers, end of period	6,430		6,002		4,776		6,430		4,776

(1)		AT&T Inc. does not disclose postpaid net account additions. Comcast and Charter do not disclose postpaid phone net customer additions. Industry-leading claims are based on consensus expectations if results are not yet reported.
(2)		Includes High Speed Internet customers.
(3)		In the second quarter of 2024, we acquired 3,504,000 prepaid customers through our acquisition of Ka’ena, which includes the impact of certain base adjustments to align the policies of Ka’ena and T-Mobile.

Translating Industry-Leading Customer Growth into Industry-Leading Financial Performance⁽¹⁾

Total service revenues increased 6% year-over-year to $16.9 billion in Q4 2024 and 5% year-over-year to $66.2 billion in 2024, which included Postpaid service revenue growth of 8% year-over-year in Q4 2024 and 7% growth year-over-year in 2024.
Net income increased 48% year-over-year to $3.0 billion in Q4 2024 and increased 36% year-over-year to $11.3 billion in 2024.
Diluted EPS increased 54% year-over-year to $2.57 per share in Q4 2024 and increased 39% year-over-year to $9.66 per share in 2024.
Core Adjusted EBITDA increased 10% year-over-year to $7.9 billion in Q4 2024 and increased 9% year-over-year to $31.8 billion in 2024.
Net cash provided by operating activities increased 14% year-over-year to $5.5 billion in Q4 2024 and increased 20% year-over-year to $22.3 billion in 2024, which included cash payments for Merger-related costs of $109 million in Q4 2024 and $767 million in 2024.
Cash purchases of property and equipment, including capitalized interest increased 39% year-over-year to $2.2 billion in Q4 2024 and decreased 10% year-over-year to $8.8 billion in 2024.
Adjusted Free Cash Flow decreased 5% year-over-year to $4.1 billion in Q4 2024 and increased 25% year-over-year to $17.0 billion in 2024, which included cash payments for Merger-related costs of $109 million in Q4 2024 and $767 million in 2024.
Program-to-date stockholder returns through December 31, 2024 of $31.4 billion included 173.7 million shares repurchased for $27.3 billion and cash dividends of $4.0 billion. This includes 20.3 million shares of common stock repurchased for $4.6 billion in Q4 2024 and 59.4 million shares repurchased for $11.1 billion in 2024, and cash dividends of $1.0 billion in Q4 2024 and $3.3 billion in 2024. The current authorization allows for stock repurchases and dividends through December 2025 of up to $14.0 billion.

	Quarter						Year Ended December 31,				Q4 2024 vs. Q3 2024		Q4 2024 vs. Q4 2023		YTD 2024 vs. YTD 2023
(in millions, except EPS)	Q4 2024		Q3 2024		Q4 2023		2024		2023		Q4 2024 vs. Q3 2024		Q4 2024 vs. Q4 2023		YTD 2024 vs. YTD 2023
Total service revenues	$	16,928	$	16,725	$	16,043	$	66,178	$	63,241	1.2	%	5.5	%	4.6	%
Postpaid service revenues		13,502		13,308		12,472		52,340		48,692	1.5	%	8.3	%	7.5	%
Total revenues		21,872		20,162		20,478		81,400		78,558	8.5	%	6.8	%	3.6	%
Net income		2,981		3,059		2,014		11,339		8,317	(2.5	)%	48.0	%	36.3	%
Diluted EPS		2.57		2.61		1.67		9.66		6.93	(1.5	)%	53.9	%	39.4	%
Adjusted EBITDA		7,916		8,243		7,224		31,864		29,428	(4.0	)%	9.6	%	8.3	%
Core Adjusted EBITDA		7,905		8,222		7,181		31,771		29,116	(3.9	)%	10.1	%	9.1	%
Net cash provided by operating activities		5,549		6,139		4,859		22,293		18,559	(9.6	)%	14.2	%	20.1	%
Cash purchases of property and equipment, including capitalized interest		2,212		1,961		1,587		8,840		9,801	12.8	%	39.4	%	(9.8	)%
Adjusted Free Cash Flow		4,084		5,162		4,305		17,032		13,586	(20.9	)%	(5.1	)%	25.4	%

(1)

Industry-leading claims are based on consensus expectations if results are not yet reported.

Extending Overall Network Lead with Best Assets, Customer Centricity and Technology Leadership

T-Mobile is the overall network leader, with the company continuing to earn third-party recognition and win pivotal contracts that require the most rigorous standards and highest expectations of performance:

Opensignal: In its latest Mobile Network Experience report, T-Mobile won all five overall network experience categories including download and upload speed experience, along with games, video and live video experience for the third year in a row. The company also took home top honors in 5G for download speeds, coverage experience and availability, consistent quality experience and was unbeaten for reliability experience.
Ookla: In its latest Speedtest Connectivity report, T-Mobile was awarded the fastest, most consistent, and most available 5G network, alongside other awards for highest ranking consumer sentiment and best gaming and mobile video streaming experience.
T-Mobile’s combination of best network assets, customer centricity and technology leadership continues to translate to real, tangible business outcomes, including a significant contract with the City of New York, including wireless services to be provided to the City’s Public Safety network, which has the highest standards and most complex needs in the country. The contract highlights T-Mobile’s differentiated ability to deliver network capabilities and is yet another testament to the company’s network leadership.

Note: See 5G device, coverage, and access details at T-Mobile.com. Ookla awards: Based on analysis by Ookla® of Speedtest Intelligence® data for the U.S., 2H 2024. Ookla trademarks used under license and reprinted with permission. Opensignal Awards: USA: Mobile Network Experience Report January 2025, based on independent analysis of mobile measurements recorded during the period September 1 – November 29, 2024. © 2025 Opensignal Limited.

Strong Outlook for 2025 with Continued Industry-Leading Growth

T-Mobile’s 2025 guidance below excludes pending acquisitions of UScellular, Metronet, Lumos, and Vistar Media:

Postpaid net customer additions are expected to be between 5.5 million and 6.0 million, expected to lead the industry for the 11^th straight year.
Core Adjusted EBITDA, which is Adjusted EBITDA less lease revenues, is expected to be between $33.1 billion and $33.6 billion, up 5% year-over-year at the midpoint.
Net cash provided by operating activities, including payments for Merger-related costs, is expected to be between $26.8 billion and $27.5 billion.
Cash purchases of property and equipment, including capitalized interest, are expected to be approximately $9.5 billion.
Adjusted Free Cash Flow, including payments for Merger-related costs, is expected to be between $17.3 billion and $18.0 billion.

(in millions, except Postpaid net customer additions and Effective tax rate)	FY 2025 Guidance
Postpaid net customer additions (thousands)	5,500	6,000
Net income ⁽¹⁾	N/A	N/A
Effective tax rate	24%	26%
Core Adjusted EBITDA ⁽²⁾	$33,100	$33,600
Net cash provided by operating activities	26,800	27,500
Capital expenditures ⁽³⁾	~9,500
Adjusted Free Cash Flow	17,300	18,000

(1)		T-Mobile is not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP Net income, including, but not limited to, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.
(2)		Management uses Core Adjusted EBITDA as a measure to monitor the financial performance of Company operations, excluding the impact of lease revenues from related device financing programs.
(3)		Capital expenditures means cash purchases of property and equipment, including capitalized interest.

Doing Well by Doing Good — The Un-carrier Way Leading the Industry in Connecting Students

T-Mobile remains committed to leveraging its network, scale, and resources to build a more connected and equitable future. Through its flagship philanthropic program, Project 10Million (“P10M”), T-Mobile is ensuring students have the tools they need to succeed in a digital world.

Since its launch in 2020, P10M has focused on delivering critical connectivity to underserved K-12 students across the nation by offering free internet connectivity and mobile hotspots.
In 2024, T-Mobile enhanced the program by doubling the data for eligible participants to 200GB per year for five years, introducing a deeply discounted data pass extension, and offering schools with the greatest needs served by P10M the opportunity to receive more free data for their students — up to 200GB.
The company also partnered with the Boys & Girls Clubs of America to expand connectivity access to youth in underserved regions, addressing local needs at a regional level and equipping clubs across the country to enroll eligible families.
In response to the California wildfires, T-Mobile is prioritizing P10M applications and waiving eligibility requirements for student households in impacted areas and offering a free hotspot and five years of free connectivity.

Through P10M, T-Mobile has connected over 6.3 million students nationwide and invested over $7.3 billion in devices and services.

Financial Results

For more details on T-Mobile’s Q4 2024 and full-year 2024 financial results, including the Investor Factbook with detailed financial tables, please visit T-Mobile US, Inc.’s Investor Relations website at https://investor.t-mobile.com.

Earnings Call Information

Date/Time

Wednesday, January 29, 2025, at 8:00 a.m. (ET)

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Participants can pre-register for the conference call here in order to receive dial-in information and a personalized PIN. This option is recommended to avoid wait times when joining the call.

Access via Phone (audio only)

Please plan on accessing the call 10 minutes prior to the scheduled start time.

Toll Free: 1-866-777-2509
International: 1-412-317-5413

Access via Webcast

The earnings call will be broadcasted live and can be replayed via the Investor Relations website at https://investor.t-mobile.com.

Submit Questions via X

Send a post to @TMobileIR or @MikeSievert using $TMUS

T-Mobile Social Media

Investors and others should note that we announce material financial and operational information to our investors using our investor relations website (https://investor.t-mobile.com), newsroom website (https://t-mobile.com/news), press releases, SEC filings and public conference calls and webcasts. We also intend to use certain social media accounts as a means of disclosing information about us and our services and for complying with our disclosure obligations under Regulation FD (the @TMobileIR X account (https://x.com/TMobileIR), the @MikeSievert X account (https://x.com/MikeSievert) and our CEO’s LinkedIn account (https://www.linkedin.com/in/sievert), both of which Mr. Sievert also uses as a means for personal communications and observations, and the @TMobileCFO X account (https://x.com/tmobilecfo), and our CFO’s LinkedIn account (https://www.linkedin.com/in/peter-osvaldik-3887394), both of which Mr. Osvaldik also uses as a means for personal communication and observations). The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these social media channels in addition to following our press releases, SEC filings and public conference calls and webcasts. The social media channels that we intend to use as a means of disclosing the information described above may be updated from time to time as listed on our investor relations website.

About T-Mobile US, Inc.

T-Mobile US, Inc. (NASDAQ: TMUS) is America’s supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all. T-Mobile’s customers benefit from its unmatched combination of value and quality, unwavering obsession with offering them the best possible service experience and undisputable drive for disruption that creates competition and innovation in wireless and beyond. Based in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Mint Mobile. For more information please visit: https://www.t-mobile.com.

Forward-Looking Statements

This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including information concerning T-Mobile US, Inc.’s future results of operations, are forward-looking statements. These forward-looking statements are generally identified by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “could” or similar expressions.

Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties and may cause actual results to differ materially from the forward-looking statements. Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the following: competition, industry consolidation and changes in the market for wireless communications services and other forms of connectivity; criminal cyberattacks, disruption, data loss or other security breaches; our inability to timely adopt and effectively deploy network technology developments; our inability to effectively execute our digital transformation and drive customer and employee adoption of emerging technologies; our inability to retain or motivate key personnel, hire qualified personnel or maintain our corporate culture; system failures and business disruptions, allowing for unauthorized use of or interference with our network and other systems; the scarcity and cost of additional wireless spectrum, and regulations relating to spectrum use; the timing and effects of any pending and future acquisition, divestiture, investment, joint venture or merger involving us, including our inability to obtain any required regulatory approval necessary to consummate any such transactions or to achieve the expected benefits of such transactions; adverse economic, political or market conditions in the U.S. and international markets, including changes resulting from increases in inflation or interest rates, supply chain disruptions and impacts of geopolitical instability, such as the Ukraine-Russia and Israel-Hamas wars and further escalations thereof; our inability to successfully deliver new products and services; any disruption or failure of our third parties (including key suppliers) to provide products or services for the operation of our business; sociopolitical volatility and polarization and risks related to environmental, social and governance matters; our substantial level of indebtedness and our inability to service our debt obligations in accordance with their terms; changes in the credit market conditions, credit rating downgrades or an inability to access debt markets; our inability to maintain effective internal control over financial reporting; any changes in regulations or in the regulatory framework under which we operate; laws and regulations relating to the handling of privacy, data protection and artificial intelligence; unfavorable outcomes of and increased costs from existing or future regulatory or legal proceedings; difficulties in protecting our intellectual property rights or if we infringe on the intellectual property rights of others; our offering of regulated financial services products and exposure to a wide variety of state and federal regulations; new or amended tax laws or regulations or administrative interpretations and judicial decisions affecting the scope or application of tax laws or regulations; our wireless licenses, including those controlled through leasing agreements, are subject to renewal and may be revoked; our exclusive forum provision as provided in our Certificate of Incorporation; interests of DT, our controlling stockholder, which may differ from the interests of other stockholders; our current and future stockholder return programs may not be fully utilized, and our share repurchases and dividend payments pursuant thereto may fail to have the desired impact on stockholder value; future sales of our common stock by DT and SoftBank and our inability to attract additional equity financing outside the United States due to foreign ownership limitations by the FCC; and other risks as disclosed in our most recent annual report on Form 10-K, and subsequent Forms 10-Q and other filings with the Securities and Exchange Commission. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law.

T-Mobile US, Inc.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures

(Unaudited)

This Press Release includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below. T-Mobile is not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP net income, including, but not limited to, Income tax expense and Interest expense. Adjusted EBITDA and Core Adjusted EBITDA should not be used to predict Net income as the difference between either of these measures and Net income is variable.

Adjusted EBITDA and Core Adjusted EBITDA are reconciled to Net income as follows:

	Quarter																								Year Ended December 31,
(in millions)	Q1 2023			Q2 2023			Q3 2023			Q4 2023			Q1 2024			Q2 2024			Q3 2024			Q4 2024			2023			2024
Net income	$	1,940		$	2,221		$	2,142		$	2,014		$	2,374		$	2,925		$	3,059		$	2,981		$	8,317		$	11,339
Adjustments:
Interest expense, net		835			861			790			849			880			854			836			841			3,335			3,411
Other (income) expense, net		(9	)		(6	)		(41	)		(12	)		(20	)		8			(7	)		(94	)		(68	)		(113	)
Income tax expense		631			717			705			629			764			843			908			858			2,682			3,373
Operating income		3,397			3,793			3,596			3,480			3,998			4,630			4,796			4,586			14,266			18,010
Depreciation and amortization		3,203			3,110			3,187			3,318			3,371			3,248			3,151			3,149			12,818			12,919
Stock-based compensation ⁽¹⁾		173			155			152			164			140			147			143			156			644			586
Merger-related costs (gain), net ⁽²⁾		358			276			152			248			130			(9	)		—			—			1,034			121
Legal-related (recoveries) expenses, net ⁽³⁾		(43	)		—			—			1			—			15			1			(105	)		(42	)		(89	)
(Gain) loss on disposal group held for sale		(42	)		17			—			—			—			—			—			—			(25	)		—
Other, net ⁽⁴⁾		153			54			513			13			13			22			152			130			733			317
Adjusted EBITDA		7,199			7,405			7,600			7,224			7,652			8,053			8,243			7,916			29,428			31,864
Lease revenues		(147	)		(69	)		(53	)		(43	)		(35	)		(26	)		(21	)		(11	)		(312	)		(93	)
Core Adjusted EBITDA	$	7,052		$	7,336		$	7,547		$	7,181		$	7,617		$	8,027		$	8,222		$	7,905		$	29,116		$	31,771

(1)		Stock-based compensation includes payroll tax impacts and may not agree to stock-based compensation expense in the Consolidated Financial Statements. Additionally, certain stock-based compensation expenses associated with the merger with Sprint Corporation (the “Merger”) have been included in Merger-related costs (gain), net.
(2)		Merger-related costs (gain), net, for the year ended December 31, 2024, includes the $100 million gain recognized for the extension fee previously paid by DISH associated with the DISH License Purchase Agreement.
(3)		Legal-related (recoveries) expenses, net consists of the settlement of certain litigation associated with the August 2021 cyberattack, net of insurance recoveries.
(4)		Other, net, primarily consists of certain severance, restructuring and other expenses, gains and losses, including severance and related costs associated with the August 2023 workforce reduction, not directly attributable to the Merger, which are not reflective of T-Mobile’s core business activities and are, therefore, excluded from Adjusted EBITDA and Core Adjusted EBITDA.

Adjusted EBITDA represents earnings before Interest expense, net of Interest income, Income tax expense, Depreciation and amortization, stock-based compensation and certain expenses, gains and losses, which are not reflective of our ongoing operating performance (“Special Items”). Special Items include Merger-related costs (gain), net, (Gain) loss on disposal groups held for sale, certain legal-related recoveries and expenses, restructuring costs not directly attributable to the Merger (including severance), and other non-core gains and losses. Core Adjusted EBITDA represents Adjusted EBITDA less device lease revenues. Core Adjusted EBITDA and Adjusted EBITDA are non-GAAP financial measures utilized by T-Mobile’s management, including our chief operating decision maker, to monitor the financial performance of our operations and allocate resources of the Company as a whole. T-Mobile uses Core Adjusted EBITDA and Adjusted EBITDA as benchmarks to evaluate T-Mobile’s operating performance in comparison to its competitors. T-Mobile also uses Core Adjusted EBITDA internally as a measure to evaluate and compensate its personnel and management for their performance. Management believes analysts and investors use Core Adjusted EBITDA and Adjusted EBITDA as supplemental measures to evaluate overall operating performance and to facilitate comparisons with other wireless communications services companies because they are indicative of T-Mobile’s ongoing operating performance and trends by excluding the impact of Interest expense from financing, non-cash depreciation and amortization from capital investments, non-cash stock-based compensation, and Special Items. Management believes analysts and investors use Core Adjusted EBITDA because it normalizes for the transition in the company’s device financing strategy, by excluding the impact of device lease revenues from Adjusted EBITDA, to align with the related depreciation expense on leased devices, which is excluded from the definition of Adjusted EBITDA. Core Adjusted EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for Net income or any other measure of financial performance reported in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).

T-Mobile US, Inc.

Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued)

(Unaudited)

Adjusted Free Cash Flow is calculated as follows:

	Quarter																								Year Ended December 31,
(in millions, except percentages)	Q1 2023			Q2 2023			Q3 2023			Q4 2023			Q1 2024			Q2 2024			Q3 2024			Q4 2024			2023			2024
Net cash provided by operating activities	$	4,051		$	4,355		$	5,294		$	4,859		$	5,084		$	5,521		$	6,139		$	5,549		$	18,559		$	22,293
Cash purchases of property and equipment, including capitalized interest		(3,001	)		(2,789	)		(2,424	)		(1,587	)		(2,627	)		(2,040	)		(1,961	)		(2,212	)		(9,801	)		(8,840	)
Proceeds from sales of tower sites		6			2			2			2			—			—			—			—			12			—
Proceeds related to beneficial interests in securitization transactions		1,345			1,309			1,131			1,031			890			958			984			747			4,816			3,579
Adjusted Free Cash Flow	$	2,401		$	2,877		$	4,003		$	4,305		$	3,347		$	4,439		$	5,162		$	4,084		$	13,586		$	17,032
Net cash provided by operating activities margin (Net cash provided by operating activities divided by Service revenues)		26.1	%		27.7	%		33.3	%		30.3	%		31.6	%		33.6	%		36.7	%		32.8	%		29.3	%		33.7	%
Adjusted Free Cash Flow margin (Adjusted Free Cash Flow divided by Service revenues)		15.4	%		18.3	%		25.2	%		26.8	%		20.8	%		27.0	%		30.9	%		24.1	%		21.5	%		25.7	%

Effective November 1, 2024, following amendments to the company’s Equipment Installment Plan Sale and Service Receivable Sale arrangements, all cash proceeds associated with the sale of such receivables, a portion of which was previously recognized as Proceeds related to beneficial interests in securitization transactions within investing cash flows, were recognized as operating cash flows. These amendments did not have a net impact on Adjusted Free Cash Flow.

Adjusted Free Cash Flow – Net cash provided by operating activities less Cash purchases of property and equipment, plus Proceeds from sales of tower sites and Proceeds related to beneficial interests in securitization transactions. Adjusted Free Cash Flow is utilized by T-Mobile’s management, investors and analysts to evaluate cash available to pay debt, repurchase shares, pay dividends and provide further investment in the business.

Adjusted Free Cash Flow margin – Adjusted Free Cash Flow divided by Service revenues. Adjusted Free Cash Flow Margin is utilized by T-Mobile’s management, investors, and analysts to evaluate the company’s ability to convert service revenue efficiently into cash available to pay debt, repurchase shares and provide further investment in the business.

The guidance range for Adjusted Free Cash Flow is calculated as follows:

	FY 2025
(in millions)	Guidance Range
Net cash provided by operating activities	$	26,800		$	27,500
Cash purchases of property and equipment, including capitalized interest		(9,500	)		(9,500	)
Adjusted Free Cash Flow	$	17,300		$	18,000

T-Mobile US, Inc.

Operating Measures

(Unaudited)

The following table sets forth company operating measures ARPA and ARPU:

	Quarter																Year Ended December 31,
(in dollars)	Q1 2023		Q2 2023		Q3 2023		Q4 2023		Q1 2024		Q2 2024		Q3 2024		Q4 2024		2023		2024
Postpaid ARPA	$	138.04	$	138.94	$	139.83	$	140.23	$	140.88	$	142.54	$	145.60	$	146.28	$	139.27	$	143.85
Postpaid phone ARPU		48.63		48.84		48.93		48.91		48.79		49.07		49.79		49.73		48.83		49.35
Prepaid ARPU		37.98		37.98		38.18		37.55		37.18		35.94		35.81		35.49		37.92		36.06

Postpaid Average Revenue Per Account (“ARPA”) – Average monthly postpaid service revenue earned per account. Postpaid service revenues for the specified period divided by the average number of postpaid accounts during the period, further divided by the number of months in the period.

Average Revenue Per User (“ARPU”) – Average monthly service revenue earned per customer. Service revenues for the specified period divided by the average number of customers during the period, further divided by the number of months in the period.

Postpaid phone ARPU excludes postpaid other customers and related revenues.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250128463619/en/

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Investor Relations: [email protected]

KEYWORDS: United States North America Washington

INDUSTRY KEYWORDS: Technology Mobile/Wireless Telecommunications 5G Internet Carriers and Services

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January 29, 2025 7:13 am

Extreme Networks Reports Second Quarter Fiscal Year 2025 Financial Results

Extreme Networks Reports Second Quarter Fiscal Year 2025 Financial Results

Consistent Execution Drives Third Quarter of Sequential Revenue Growth, Powering Earnings Above Guidance

MORRISVILLE, N.C.–(BUSINESS WIRE)–
Extreme Networks, Inc. (“Extreme”) (Nasdaq: EXTR) today released financial results for its second quarter ended December 31, 2024, highlighting continued market recovery in enterprise networking, and marking Extreme’s third consecutive quarter of sequential revenue growth.

“Our competitive win rates continue to improve, especially with larger enterprise customers. Our success is based on the simplicity and feature differentiation of our cloud networking platform and unique enterprise campus fabric solution. Changes in the competitive environment and early traction with our commercial models are creating new growth opportunities for Extreme,” said Ed Meyercord, President and Chief Executive Officer.

“In the second quarter, we announced our vision for Extreme Platform ONE™, our innovative technology platform that integrates Extreme’s networking and security solutions by collapsing all of our applications into a single interface. We are introducing new AI models at the core of the platform that will drive impactful advances to the networking experience. Platform ONE will deliver significant productivity gains for IT teams in network design, deployment, management and commercial operations, by reducing complex tasks from hours to minutes,” concluded Meyercord.

Kevin Rhodes, Executive Vice President and Chief Financial Officer, stated, “The continued sequential revenue growth in the second quarter, coupled with higher operating margin and earnings growth, demonstrates the strong operating leverage in our financial model. We expect better than seasonal revenue for the third quarter, at the midpoint of our outlook, and further improvement in cash flow generation. For FY25, we expect growth in revenue, along with higher operating margins and cash flow generation, based on the ongoing recovery in our business and prudent management of our expenses.”

Fiscal Second Quarter Results:

Revenue $279.4 million, down 5.7% year-over-year, and up 3.8% quarter-over-quarter
SaaS ARR $181.1 million, up 14.4% year-over-year, and up 4.0% quarter-over-quarter
GAAP diluted EPS $0.06, compared to GAAP diluted EPS $0.03 last year and GAAP Loss per share $0.08 last quarter
Non-GAAP diluted EPS $0.21, compared to $0.24 last year and $0.17 last quarter
GAAP gross margin 62.7% compared to 61.9% last year and 63.0% last quarter
Non-GAAP gross margin 63.4% compared to 62.5% last year and 63.7% last quarter
GAAP operating profit margin 4.5% compared to GAAP operating profit margin 3.5% last year and GAAP operating loss margin 1.8% last quarter
Non-GAAP operating profit margin 14.7% compared to 14.8% last year and 12.4% last quarter

Liquidity:

Q2 ending cash balance was $170.3 million, an increase of $10.8 million from the end of Q1 2025 and a decrease of $51.1 million from the end of Q2 in the prior year.
Q2 net debt was $14.7 million, a decrease of $13.3 million from net debt of $28.0 million at the end of Q1 2025 and an increase of $41.1 million from net cash of $26.4 million at the end of Q2 in the prior year.
During Q2, we generated net cash flow from operations of $21.5 million and had free cash flow of $16.1 million.

Recent Key Highlights:

Extreme introduced Extreme Platform ONE, an innovative technology platform that integrates networking, security and AI to drive automation that helps customers reduce complex tasks from hours to minutes. The platform’s AI-powered automation includes conversational, interactive and autonomous AI agents—to assist, advise and accelerate the productivity of networking, security and business teams. CRN Magazine named Platform ONE one of the “Ten Hottest Networking Products of 2024.”
Extreme continued its dominance in professional sports, as the Pittsburgh Steelers will deploy state-of-the-art 6GHz Wi-Fi to enhance the fan experience and optimize retail PoS systems, ensuring faster transactions and shorter concession lines. NHL teams such as the Anaheim Ducks, Calgary Flames, Columbus Blue Jackets, St. Louis Blues, and Nashville Predators have deployed Extreme Fabric and ExtremeCloud™ IQ to improve in-arena Wi-Fi, deliver immersive fan experiences, support new digital services and secure IoT devices running throughout the arenas.
The München Klinik, the largest hospital network in Munich and the number one emergency hospital in the region, has invested in Extreme Fabric, Universal switching and ExtremeCloud IQ to provide a more robust and secure network across its five sites. The investment in Extreme will help them advance patient care, better secure patient records and improve the performance of medical devices.
Philadelphia International Airport selected Extreme for core routing services as well as secure automation via Extreme Fabric and Extreme’s Network Access Control (NAC) solution. PHL serves over 12 million passengers a year and is upgrading its terminals and technology. Deploying Extreme’s technology provides the network team increased agility during construction phases of the projects in addition to daily operations.
UK-based law firm Taylor Wessing needed to update its legacy infrastructure across its 28 offices. With Extreme Wireless and ExtremeCloud IQ, the firm will have faster Wi-Fi for employees, streamlined network management for its IT team and a simplified licensing structure that will be easier to manage and scale as the firm continues to grow.
The City ofTemple, Texas, needed to modernize its network infrastructure and help its IT staff better support services across multiple municipal offices for its rapidly growing population. Temple selected Extreme to fully refresh its wired and wireless network and standardize its infrastructure on Extreme Fabric, significantly improving network security, visibility and control.
Extreme was recognized as one of the Great Tech Places to Work by NC TECH and was ranked #33 on Newsweek’s 2025 Excellence 1000 Index, demonstrating our commitment to innovation, ethical practices, and sustainability while prioritizing our customers, employees, and global impact. ExtremeCloud Universal ZTNA was also named a winner in the 2025 BIG Innovation Awards and in the TMCNet 2024 Cybersecurity Excellence Awards.

Fiscal Q2 2025 Financial Metrics:

(in millions, except percentages and per share information)

	GAAP Results
	Three Months Ended
	December 31, 2024			December 31, 2023			Change
Product	$	172.3		$	186.6		$	(14.3	)
Subscription and support		107.1			109.8			(2.7	)
Total net revenue	$	279.4		$	296.4		$	(17.0	)
Gross margin		62.7	%		61.9	%		0.8	%
Operating margin		4.5	%		3.5	%		1.0	%
Net income	$	7.4		$	4.0		$	3.4
Net income per diluted share	$	0.06		$	0.03		$	0.03

	Non-GAAP Results
	Three Months Ended
	December 31, 2024			December 31, 2023			Change
Product	$	172.3		$	186.6		$	(14.3	)
Subscription and support		107.1			109.8			(2.7	)
Total net revenue	$	279.4		$	296.4		$	(17.0	)
Gross margin		63.4	%		62.5	%		0.9	%
Operating margin		14.7	%		14.8	%		(0.1	)%
Net income	$	28.6		$	31.5		$	(2.9	)
Net income per diluted share	$	0.21		$	0.24		$	(0.03	)

Extreme uses the non-GAAP free cash flow metric as a measure of operating performance. Free cash flow represents GAAP net cash provided by (used in) operating activities, less capital expenditures for purchases of property and equipment and capitalized software development costs. Extreme considers free cash flow to be useful information for management and investors regarding the amount of cash generated by the business after the purchases of property and equipment and capitalized software development costs, which can then be used to, among other things, invest in Extreme’s business, make strategic acquisitions, and strengthen the balance sheet. A limitation of the utility of this non-GAAP free cash flow metric as a measure of financial performance is that it does not represent the total increase or decrease in the Company’s cash balance for the period. The following table shows non-GAAP free cash flow calculation (in millions):

Free Cash Flow	Three Months Ended						Six Months Ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Cash flow provided by operations	$	21.5		$	34.3		$	40.1		$	109.9
Less: Property and equipment capital expenditures		(5.4	)		(5.7	)		(12.3	)		(10.0	)
Total free cash flow	$	16.1		$	28.6		$	27.8		$	99.9

SaaS ARR: Extreme uses SaaS annual recurring revenue (“SaaS ARR”) to identify the annual recurring revenue of ExtremeCloud IQ and other subscription revenue, based on the annualized value of quarterly subscription revenue and term-based licenses. We believe that SaaS ARR is an important metric because it is driven by our ability to acquire new customers and to maintain and expand our relationships with existing customers. SaaS ARR should be viewed independently of revenue or deferred revenue that are accounted for under U.S. GAAP. SaaS ARR does not have a standardized meaning and therefore may not be comparable to similarly titled measures presented by other companies. SaaS ARR is not intended to be a replacement for forecasts of revenue.

Gross Debt: Gross debt is defined as long-term debt and the current portion of long-term debt as shown on the balance sheet plus unamortized debt issuance costs, if any.

Net Cash (Debt) is defined as cash and cash equivalents minus gross debt, as shown in the table below (in millions):

Cash and cash equivalents				Gross debt				Net cash (debt)
$	170.3			$	185.0			$	(14.7	)

Business Outlook:

Extreme’s business outlook is based on current expectations. The following statements are forward-looking, and actual results could differ materially based on various factors, including market conditions and the factors set forth under “Forward-Looking Statements” below.

For its third quarter of fiscal 2025, ending March 31, 2025, the Company is targeting:

(in millions, except percentages and per share information)	Low-End			High-End
FQ3’25 Guidance – GAAP
Total net revenue	$	276.0		$	284.0
Gross margin		61.2	%		62.2	%
Operating margin		0.0	%		2.1	%
Earnings (Loss) per share	$	(0.04	)	$	0.00
Shares outstanding used in calculating GAAP EPS		133.3			134.7
FQ3’25 Guidance – Non-GAAP
Total net revenue	$	276.0		$	284.0
Gross margin		62.0	%		63.0	%
Operating margin		12.0	%		13.7	%
Earnings per share	$	0.16		$	0.20
Diluted Shares outstanding used in calculating non-GAAP EPS		134.7			134.7

The following table shows the GAAP to non-GAAP reconciliation for Q3 FY’25 guidance:

		FQ3’25
	Gross Margin	Operating Margin	Earnings (Loss) per Share
GAAP	61.2% – 62.2%	0.0% – 2.1%	($0.04) – $0.00
Estimated adjustments for:
Share-based compensation	0.6%	7.4% – 7.8%	0.16
Amortization of product intangibles	0.2%	0.2%	0.01
Amortization of non-product intangibles	—	0.2%	—
Restructuring and related charges	—	1.0%	0.02
Litigation charges	—	0.7%	0.01
System transition cost	—	2.1%	0.04
Tax adjustment	—	—	(0.04)
Non-GAAP	62.0% – 63.0%	12.0% – 13.7%	$0.16-$0.20

The total of percentage rate changes may not equal the total change in all cases due to rounding.

For the full year fiscal 2025, ending June 30, 2025, the Company is targeting (in millions):

	Low-End		High-End
FY’25 Guidance
Total net revenue	$	1,120.0	$	1,138.0

Conference Call:

Extreme will host a conference call at 8:00 a.m. Eastern (5:00 a.m. Pacific) today to review the second quarter results of fiscal 2025 as well as the business outlook for the third quarter of fiscal 2025 ending March 31, 2025, including significant factors and assumptions underlying the targets noted above. The conference call will be available to the public through a live audio web broadcast via the internet at http://investor.extremenetworks.com and a replay of the call will be available on the website for at least 7 days following the call. To access the call, please go to this link (Extreme Networks Q2’25 Earnings Registration) and you will be provided with dial in details. If you would like to participate in the Q&A, please register here: Q&A Registration Link. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time.

About Extreme:

Extreme Networks, Inc. (EXTR) creates networking experiences that enable all of us to advance. We push the boundaries of technology leveraging the powers of machine learning, artificial intelligence, analytics, and automation. Tens of thousands customers globally trust our end-to-end, cloud-driven networking solutions and rely on our top-rated services and support to accelerate their digital transformation efforts and deliver progress like never before. For more information, visit Extreme’s website at https://www.extremenetworks.com/ or LinkedIn, YouTube, Twitter, Facebook or Instagram

Extreme Networks, ExtremeCloud, and the Extreme Networks logo, are trademarks of Extreme Networks, Inc. or its subsidiaries in the United States and/or other countries. Other trademarks shown herein are the property of their respective owners.

Non-GAAP Financial Measures:

Extreme provides all financial information required in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company is providing with this press release non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating income, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, net cash (debt) and non-GAAP free cash flow. In preparing non-GAAP information, the Company has excluded, where applicable, the impact of share-based compensation, amortization of intangibles, restructuring and related charges, system transition costs, litigation charges, debt refinancing charges and the tax effect of non-GAAP adjustments. The Company believes that excluding these items provides both management and investors with additional insight into its current operations, the trends affecting the Company, the Company’s marketplace performance, and the Company’s ability to generate cash from operations. Please note the Company’s non-GAAP measures may be different than those used by other companies. The additional non-GAAP financial information the Company presents should be considered in conjunction with, and not as a substitute for, the Company’s GAAP financial information.

The Company has provided a non-GAAP reconciliation of the results for the periods presented in this release, which are adjusted to exclude certain items as indicated. These measures should only be used to evaluate the Company’s results of operations in conjunction with the corresponding GAAP measures for comparable financial information and understanding of the Company’s ongoing performance as a business. Extreme uses both GAAP and non-GAAP measures to evaluate and manage its operations.

Forward-Looking Statements:

Statements in this press release, including statements regarding those concerning the Company’s business outlook and future operating metrics, financial and operating results, are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements speak only as of the date of this release. There are several important factors that could cause actual results and other future events to differ materially from those suggested or indicated by such forward-looking statements. These include, among others, risks related to global macroeconomic and business trends; the Company’s failure to achieve targeted financial metrics; a highly competitive business environment for network switching equipment and cloud management of network devices; the Company’s effectiveness in controlling expenses; the possibility that the Company might experience delays in the development or introduction of new technology and products; customer response to the Company’s new technology and products; risks related to pending or future litigation; political and geopolitical factors, including but not limited to the potential of tariffs imposed by the U.S. government and changes to U.S. tax regulations; and a dependency on third parties for certain components and for the manufacturing of the Company’s products.

For more information about factors that could cause actual results and other future events to differ materially from those suggested or indicated by such forward-looking statements, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2024, Quarterly Report on 10-Q for the quarter ended September 30, 2024 and other documents of the Company on file with the Securities and Exchange Commission (available at www.sec.gov). As a result of these risks and others, actual results could vary significantly from those anticipated in this press release, and the Company’s financial condition and results of operations could be materially adversely affected. Except as required under the U.S. federal securities laws and the rules and regulations of the Securities and Exchange Commission, Extreme disclaims any obligation to update any forward-looking statements after the date of this release, whether as a result of new information, future events, developments, changes in assumptions or otherwise.

EXTREME NETWORKS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share amounts) (Unaudited)

	December 31, 2024			June 30, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	170,322		$	156,699
Accounts receivable, net		117,575			89,518
Inventories		132,278			141,032
Prepaid expenses and other current assets		75,114			79,677
Total current assets		495,289			466,926
Property and equipment, net		36,735			43,744
Operating lease right-of-use assets, net		41,609			44,145
Goodwill		391,981			393,709
Intangible assets, net		8,221			10,613
Other assets		107,109			83,457
Total assets	$	1,080,944		$	1,042,594
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	52,371		$	51,423
Accrued compensation and benefits		59,521			42,064
Accrued warranty		10,036			10,942
Current portion of deferred revenue		312,050			306,114
Current portion of long-term debt, net of unamortized debt issuance costs of $752 and $674, respectively		11,748			9,326
Current portion, operating lease liabilities		10,997			10,547
Other accrued liabilities		77,499			87,172
Total current liabilities		534,222			517,588
Deferred revenue, less current portion		277,419			268,909
Long-term debt, less current portion, net of unamortized debt issuance costs of $1,634 and $1,735, respectively		170,866			178,265
Operating lease liabilities, less current portion		37,994			41,466
Deferred income taxes		6,771			7,978
Other long-term liabilities		2,464			3,106
Commitments and contingencies
Stockholders’ equity:
Convertible preferred stock, $0.001 par value, issuable in series, 2,000 shares authorized; none issued		—			—
Common stock, $0.001 par value, 750,000 shares authorized; 150,866 and 148,503 shares issued, respectively; 132,647 and 130,284 shares outstanding, respectively		151			149
Additional paid-in-capital		1,253,296			1,220,379
Accumulated other comprehensive loss		(19,354	)		(15,483	)
Accumulated deficit		(945,084	)		(941,962	)
Treasury stock at cost, 18,219 and 18,219 shares, respectively		(237,801	)		(237,801	)
Total stockholders’ equity		51,208			25,282
Total liabilities and stockholders’ equity	$	1,080,944		$	1,042,594

EXTREME NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) (Unaudited)

	Three Months Ended						Six Months Ended
	December 31, 2024			December 31, 2023			December 31, 2024			December 31, 2023
Net revenues:
Product	$	172,261		$	186,611		$	334,545		$	440,094
Subscription and support		107,094			109,766			214,014			209,420
Total net revenues		279,355			296,377			548,559			649,514
Cost of revenues:
Product		72,604			81,493			142,006			190,029
Subscription and support		31,628			31,514			61,923			63,179
Total cost of revenues		104,232			113,007			203,929			253,208
Gross profit:
Product		99,657			105,118			192,539			250,065
Subscription and support		75,466			78,252			152,091			146,241
Total gross profit		175,123			183,370			344,630			396,306
Operating expenses:
Research and development		54,883			52,833			109,334			110,849
Sales and marketing		79,967			85,154			161,350			177,074
General and administrative		26,064			25,384			62,665			49,257
Restructuring and related charges		1,035			9,174			2,312			11,891
Amortization of intangible assets		509			509			1,021			1,020
Total operating expenses		162,458			173,054			336,682			350,091
Operating income		12,665			10,316			7,948			46,215
Interest income		839			1,430			1,685			2,656
Interest expense		(4,179	)		(4,269	)		(8,601	)		(8,587	)
Other income (expense), net		661			(420	)		(60	)		12
Income before income taxes		9,986			7,057			972			40,296
Provision for income taxes		2,604			3,069			4,094			7,632
Net income (loss)	$	7,382		$	3,988		$	(3,122	)	$	32,664

Basic and diluted income (loss) per share:
Net income (loss) per share – basic	$	0.06		$	0.03		$	(0.02	)	$	0.25
Net income (loss) per share – diluted	$	0.06		$	0.03		$	(0.02	)	$	0.25

Shares used in per share calculation – basic		132,381			128,987			131,778			128,885
Shares used in per share calculation – diluted		134,107			131,514			131,778			132,786

EXTREME NETWORKS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)

	Six Months Ended
	December 31, 2024			December 31, 2023
Cash flows from operating activities:
Net income (loss)	$	(3,122	)	$	32,664
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation		7,804			9,485
Amortization of intangible assets		2,251			3,064
Reduction in carrying amount of right-of-use asset		4,894			5,891
Provision for credit losses		27			82
Share-based compensation		41,219			40,876
Deferred income taxes		(987	)		(21	)
Provision (Benefit) for excess and obsolete inventory⁽¹⁾		(271	)		16,043
Non-cash interest expense		594			532
Other		(801	)		(2,481	)
Changes in operating assets and liabilities:
Accounts receivable, net		(28,083	)		69,915
Inventories⁽¹⁾		411			(80,595	)
Prepaid expenses and other assets		(9,969	)		(7,850	)
Accounts payable		1,177			(12,263	)
Accrued compensation and benefits		16,995			(20,625	)
Operating lease liabilities		(5,375	)		(6,444	)
Deferred revenue		17,421			48,272
Other current and long-term liabilities		(4,067	)		13,320
Net cash provided by operating activities		40,118			109,865
Cash flows from investing activities:
Capital expenditures		(12,325	)		(9,955	)
Net cash used in investing activities		(12,325	)		(9,955	)
Cash flows from financing activities:
Net payments on revolving facility		—			(25,000	)
Payments on debt obligations		(5,000	)		(5,000	)
Payments on debt financing costs		(695	)		—
Repurchase of common stock		—			(49,855	)
Payments for tax withholdings, net of proceeds from issuance of common stock		(8,300	)		(33,387	)
Net cash used in financing activities		(13,995	)		(113,242	)
Foreign currency effect on cash and cash equivalents		(175	)		(91	)
Net increase (decrease) in cash and cash equivalents		13,623			(13,423	)

Cash and cash equivalents at beginning of period		156,699			234,826
Cash and cash equivalents at end of period	$	170,322		$	221,403

⁽¹⁾ The prior period amounts have been reclassified to conform to the current period presentation

Extreme Networks, Inc.

Non-GAAP Measures of Financial Performance

To supplement the Company’s consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), Extreme uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating income, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, net cash (debt) and non-GAAP free cash flow.

Reconciliation to the nearest GAAP measure of all historical non-GAAP measures included in this press release can be found in the tables included with this press release.

Non-GAAP measures presented in this press release are not in accordance with or alternative measures prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Extreme’s results of operations as determined in accordance with GAAP. These non-GAAP measures should only be used to evaluate Extreme’s results of operations in conjunction with the corresponding GAAP measures.

Extreme believes these non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, enhance investors’ and management’s overall understanding of the Company’s current financial performance and the Company’s prospects for the future, including cash flows available to pursue opportunities to enhance stockholder value. In addition, because Extreme has historically reported certain non-GAAP results to investors, the Company believes the inclusion of non-GAAP measures provides consistency in the Company’s financial reporting.

For its internal planning process, and as discussed further below, Extreme’s management uses financial statements that do not include share-based compensation expense, amortization of intangibles, restructuring and related charges, system transition costs, litigation charges, debt refinancing charges and the tax effect of non-GAAP adjustments. Extreme’s management also uses non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the Company’s financial results.

As described above, Extreme excludes the following items from one or more of its non-GAAP measures when applicable.

Share-based compensation. Consists of associated expenses for stock options, restricted stock awards and the Company’s Employee Stock Purchase Plan. Extreme excludes share-based compensation expenses from its non-GAAP measures primarily because they are non-cash expenses that the Company does not believe are reflective of ongoing cash requirement related to its operating results. Extreme expects to incur share-based compensation expenses in future periods.

Amortization of intangibles. Amortization of intangibles includes the monthly amortization expense of intangible assets such as developed technology, customer relationships, trademarks and order backlog. The amortization of the developed technology and order backlog are recorded in cost of goods sold, while the amortization for the other intangibles is recorded in operating expenses. Extreme excludes these expenses since they result from an intangible asset and for which the period expense does not impact the operations of the business and are non-cash in nature.

Restructuring and related charges.Restructuring and related charges consist of severance costs for employees, asset disposal costs and other charges related to excess facilities that do not provide economic benefit to our future operations. Extreme excludes restructuring expenses since they result from events that occur outside of the ordinary course of continuing operations.

System transition costs. System transition costs consist of costs related to direct and incremental costs incurred in connection with our multi-phase transition of our customer relationship management solution and our configure, price, quote solution. Extreme excludes these costs because we believe that these costs do not reflect future operating expenses and will be inconsistent in amount and frequency, making it difficult to contribute to a meaningful evaluation of our operating performance.

Litigation charges. Litigation charges consist of estimated settlement and related legal expenses for a non-recurring pending litigation offset by any proceeds received or expected to be received from insurance.

Debt refinancing charges.Debt refinancing charges consist of costs that were not capitalizable and are included in other income (expense), that occurred in conjunction with the amendment related to our outstanding credit facility.

Tax effect of non-GAAP adjustments.We calculate our non-GAAP provision for income taxes in accordance with the SEC guidance on non-GAAP Financial Measures Compliance and Disclosure Interpretation. We have assumed our U.S. federal and state net operating losses would have been fully consumed by the historical non-GAAP financial adjustments, eliminating the need for a full valuation allowance against our U.S. deferred tax assets which, consequently, enables our use of research and development tax credits. The non-GAAP tax provision consists of current and deferred income tax expense commensurate with the non-GAAP measure of profitability using our blended U.S. statutory tax rate of 24.6%.

The non-GAAP provision for income taxes has typically been and is currently higher than the GAAP provision given the Company has a valuation allowance against its US and a portion of its Irish deferred tax assets due to historical losses. Once these valuation allowances are released, the non-GAAP and the GAAP provision for income taxes will be more closely aligned.

Over the next year, our cash taxes will be driven by US federal and state taxes and the tax expense of our foreign subsidiaries, which amounts have not historically been significant, with the exception of the Company’s Canadian, German and Indian subsidiaries which perform research and development and sales and marketing activities for the Company, as well as the Company’s Irish trading subsidiaries.

EXTREME NETWORKS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

GAAP TO NON-GAAP RECONCILIATION

(In thousands, except percentages and per share amounts)

(Unaudited)

Revenues

Three Months Ended

Six Months Ended

December 31,

2024

December 31,

2023

December 31,

2024

December 31,

2023

Revenues – GAAP

$

279,355

$

296,377

$

548,559

$

649,514

Non-GAAP Gross Margin

Three Months Ended

Six Months Ended

December 31,

2024

December 31,

2023

December 31,

2024

December 31,

2023

Gross profit – GAAP

$

175,123

$

183,370

$

344,630

$

396,306

Gross margin – GAAP percentage

62.7

%

61.9

%

62.8

%

61.0

%

Adjustments:

Share-based compensation expense, Product

680

464

1,298

947

Share-based compensation expense, Subscription and support

798

749

1,487

1,615

Amortization of intangibles, Product

589

593

1,195

1,737

Amortization of intangibles, Subscription and support

—

—

—

272

Total adjustments to GAAP gross profit

$

2,067

$

1,806

$

3,980

$

4,571

Gross profit – non-GAAP

$

177,190

$

185,176

$

348,610

$

400,877

Gross margin – non-GAAP percentage

63.4

%

62.5

%

63.6

%

61.7

%

Non-GAAP Operating Margin

Three Months Ended

Six Months Ended

December 31,

2024

December 31,

2023

December 31,

2024

December 31,

2023

GAAP operating income

$

12,665

$

10,316

$

7,948

$

46,215

GAAP operating margin

4.5

%

3.5

%

1.4

%

7.1

%

Adjustments:

Share-based compensation expense, cost of revenues

1,478

1,213

2,785

2,562

Share-based compensation expense, R&D

4,467

4,435

8,680

8,812

Share-based compensation expense, S&M

7,596

7,535

14,478

14,523

Share-based compensation expense, G&A

7,911

7,774

15,276

14,979

Restructuring and related charges

1,035

9,174

2,312

11,891

Litigation charges

877

1,353

11,593

2,813

System transition costs

4,026

1,030

9,371

1,599

Amortization of intangibles

1,098

1,102

2,216

3,029

Total adjustments to GAAP operating income

$

28,488

$

33,616

66,711

60,208

Non-GAAP operating income

$

41,153

$

43,932

$

74,659

$

106,423

Non-GAAP operating margin

14.7

%

14.8

%

13.6

%

16.4

%

Non-GAAP Net Income (Loss)

Three Months Ended

Six Months Ended

December 31,

2024

December 31,

2023

December 31,

2024

December 31,

2023

GAAP net income (loss)

$

7,382

$

3,988

$

(3,122

)

$

32,664

Adjustments:

Share-based compensation expense

21,452

20,957

41,219

40,876

Restructuring and related charges

1,035

9,174

2,312

11,891

Litigation charges

877

1,353

11,593

2,813

System transition costs

4,026

1,030

9,371

1,599

Amortization of intangibles

1,098

1,102

2,216

3,029

Debt refinancing charges, Other income (expense)

—

—

79

—

Tax effect of non-GAAP adjustments

(7,297

)

(6,129

)

(12,695

)

(14,857

)

Total adjustments to GAAP net income (loss)

$

21,191

$

27,487

$

54,095

$

45,351

Non-GAAP net income

$

28,573

$

31,475

$

50,973

$

78,015

Earnings (Loss) per share

GAAP net income (loss) per share – diluted

$

0.06

$

0.03

$

(0.02

)

$

0.25

Non-GAAP net income (loss) per share – diluted

$

0.21

$

0.24

$

0.38

$

0.59

Shares used in net income (loss) per share – diluted:

GAAP Shares used in per share calculation – basic

132,381

128,987

131,778

128,885

Potentially dilutive equity awards

1,726

2,527

1,462

3,901

GAAP and Non-GAAP shares used in per share calculation – diluted

134,107

131,514

133,240

132,786

View source version on businesswire.com: https://www.businesswire.com/news/home/20250129573352/en/

Investor Relations

Stan Kovler

919/595-4196

[email protected]

Media Contact

Amy Aylward

603/952-5138

[email protected]

KEYWORDS: United States North America North Carolina

INDUSTRY KEYWORDS: Technology Mobile/Wireless Public Relations/Investor Relations Communications Software Networks IOT (Internet of Things) Data Management Artificial Intelligence

MEDIA:

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Posted on January 29, 2025 7:13 am
More Than 200 Companies Advance Trial Management with Veeva CTMS

PR Newswire

Biopharmas use leading CTMS for improved trial efficiency and collaboration

PLEASANTON, Calif.
, Jan. 29, 2025 /PRNewswire/ — Veeva Systems (NYSE: VEEV) today announced that more than 200 companies – including 17 of the top 20 biopharmas – use Veeva CTMS to execute faster, more efficient trials. As study complexity and data volumes increase, biopharmas and CROs are centralizing data and documents with Veeva CTMS to streamline processes and drive stakeholder collaboration.

“Veeva CTMS is the central hub of our trials, allowing study metrics and documents to flow seamlessly across our ecosystem,” said Bonne Adams, vice president of operations at Inhibrx. “Using clinical applications on a connected platform saves time and effort for our lean team and improves how we work with CRO partners.”

Whether biopharmas insource or outsource trials, clinical teams can use Veeva CTMS to proactively manage studies and quickly identify and address issues. With a flexible and scalable system, companies can accelerate trial execution and deliver high-quality data while maintaining compliance with global regulations like ICH E6(R2) and (R3).

To help biopharmas adapt to trial operating model changes and keep up with evolving regulations, Veeva continues to deliver clinical innovations. New Veeva CTMS advancements include:

CTMS transfer automates daily data transfers from CROs to sponsors for greater visibility

Oversight issue tracking and management for faster resolution

Enhancements to manage insourced, outsourced, and complex trials for speed and agility

“Modern clinical trial management systems should scale easily and support both insourced and outsourced operating models,” said Henry Galio, vice president of Veeva CTMS strategy. “To provide this flexibility, we’re delivering new capabilities for Veeva CTMS through our three product releases per year, continuously advancing to help the industry work better together and accelerate execution.”

With the increased adoption of Veeva CTMS, more companies are simplifying trial operations and maintaining compliance regardless of operating model. Veeva CTMS is part of Veeva Clinical Platform, the most complete and highest-quality platform for faster and more efficient trials. Learn more about Veeva CTMS at SCOPE 2025 booth 916, Feb. 3-6 in Orlando.

Additional Information
For more on Veeva CTMS, visit: veeva.com/CTMS Connect with Veeva on LinkedIn: linkedin.com/company/veeva-systems

About Veeva Systems
Veeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 1,000 customers, ranging from the world’s largest biopharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders, and the industries it serves. For more information, visit veeva.com.

Veeva Forward-looking Statements
This release contains forward-looking statements regarding Veeva’s products and services and the expected results or benefits from use of our products and services. These statements are based on our current expectations. Actual results could differ materially from those provided in this release and we have no obligation to update such statements. There are numerous risks that have the potential to negatively impact our results, including the risks and uncertainties disclosed in our filing on Form 10- Q for the period ended October 31, 2024, which you can find here (a summary of risks which may impact our business can be found on pages 36 and 37), and in our subsequent SEC filings, which you can access at sec.gov.

Contact:

Deivis Mercado

Veeva Systems
925-226-8821
[email protected]

View original content to download multimedia:https://www.prnewswire.com/news-releases/more-than-200-companies-advance-trial-management-with-veeva-ctms-302362835.html

SOURCE Veeva Systems

Posted on January 29, 2025 7:12 am
Frontier Airlines Confirms Compelling Proposal to Combine With Spirit Airlines

PR Newswire

Proposed Transaction Delivers Higher Recoveries for Spirit Financial Stakeholders, Including Shareholders, Than Spirit Standalone Plan of Reorganization

Frontier Stands Ready to Continue Constructive Discussions with Spirit and its Financial Stakeholders

DENVER
, Jan. 29, 2025 /PRNewswire/ — Frontier Group Holdings, Inc. (“Frontier”) (NASDAQ: ULCC), parent company of Frontier Airlines, Inc. today confirmed it made a compelling proposal to combine with Spirit Airlines, Inc. (“Spirit”) through the issuance of newly issued Frontier debt and common stock.

The proposed transaction would provide meaningful value to Spirit financial stakeholders, in excess of Spirit’s standalone restructuring plan. As investors in the combined airline, Spirit’s financial stakeholders could participate in the upside of a stronger low-cost carrier while benefiting from the very significant synergies Frontier expects to achieve by combining the airlines’ operations.

Bill Franke, the Chair of Frontier’s Board of Directors and the managing partner of Indigo Partners LLC, said, “This proposal reflects a compelling opportunity that will result in more value than Spirit’s standalone plan by creating a stronger low fare airline with the long-term viability to compete more effectively and enter new markets at scale. We stand ready to continue discussions with Spirit and its financial stakeholders and believe that we can promptly reach agreement on a transaction. We are hopeful we can achieve a resolution that delivers significant value for consumers, team members, communities, partners, creditors and shareholders.”

“While we are pleased with the strong results Frontier has been able to deliver through the execution of our business strategy, we have long believed a combination with Spirit would allow us to unlock additional value creation opportunities,” said Barry Biffle, CEO of Frontier. “As a combined airline, we would be positioned to offer more options and deeper savings, as well as an enhanced travel experience with more reliable service.”

Since submitting the proposal, Frontier has held discussions with members of Spirit’s board of directors and management team, as well as representatives of Spirit’s financial stakeholders with respect to the proposal. As part of the discussions, Frontier shared materials with Spirit and its financial stakeholders regarding the benefits of the proposed transaction. The materials, which are based on Spirit’s bankruptcy court filings, also demonstrate that Spirit’s standalone plan will likely result in an unprofitable airline with a high debt load and limited likelihood of success.

The materials have been furnished on Form 8-K with the Securities and Exchange Commission.

Frontier delivered a letter outlining the terms of its proposal and Frontier’s willingness to continue to engage in negotiations to Spirit’s Chair and Chief Executive Officer. The full text of the letter follows:

Dear Mr. Gardner and Mr. Christie:

As has been confirmed in our discussions with you and your advisors, both parties agree there is compelling industrial logic to the combination of our two companies. To that end, we have proposed to you a transaction, as previously communicated and as attached herein. We believe this transaction generates meaningful value for your stakeholders in excess of that generated by the plan you currently have on file with the Bankruptcy Court.

We put forward this offer in good faith, understanding that it generates more value for all Spirit stakeholders, including common stockholders. We have not, however, received a specific counterproposal but stand ready to negotiate any and all parts of this offer after receiving a substantive response from you.

We continue to believe that under the current standalone plan, Spirit will emerge highly levered, losing money at the operating level, and this would not be a transaction we would pursue. As a result, time is of the essence.

Sincerely,

Bill and Barry

Advisors

Citigroup Global Markets, Inc. is serving as financial advisor and Latham & Watkins LLP is serving as legal counsel to Frontier.

Cautionary Statement Regarding Forward-Looking Statements and Information

Certain statements in this communication should be considered forward-looking statements within the meaning of Section 27A of the Securities Act, Section 21E of the Exchange Act, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on Frontier’s current expectations and beliefs with respect to certain current and future events and anticipated financial and operating performance. Words such as “expects,” “will,” “would”, “plans,” “intends,” “anticipates,” “indicates,” “remains,” “believes,” “estimates,” “forecast,” “guidance,” “outlook,” “goals,” “targets” and similar expressions are intended to identify forward-looking statements. Additionally, forward-looking statements include statements that do not relate solely to historical facts, such as statements which identify uncertainties or trends, discuss the possible future effects of current known trends or uncertainties, or which indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this communication are based upon information available to Frontier on the date of this report. Frontier undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law.

Actual results could differ materially from these forward-looking statements due to numerous risks and uncertainties related to Frontier’s and Spirit’s respective businesses and Frontier’s proposed transaction with Spirit including, without limitation, the following: uncertainty as to whether Spirit will further pursue, enter into or consummate the proposed transaction on the terms set forth in the proposal or on other terms; uncertainties as to the timing of the proposed transaction; adverse effects on Frontier’s share price resulting from the announcement or completion of the proposed transaction or any failure to complete the proposed transaction; failure to obtain applicable regulatory or other required approvals in a timely manner; failure to satisfy other closing conditions to the proposed transaction; failure of the parties to consummate the proposed transaction; risks that the combined companies will not realize estimated cost savings, value of certain tax assets, synergies and growth, or that such benefits may take longer to realize than expected or raise unanticipated costs; failure to realize anticipated benefits of the combined operations; risks relating to unanticipated costs of integration; demand for the combined company’s services; the growth, change and competitive landscape of the markets in which the combined company participates; expected seasonality trends; diversion of managements’ attention from ongoing business operations and opportunities; potential adverse reactions or changes to business, creditor or employee relationships, including those resulting from the announcement or completion of the proposed transaction or the Spirit Chapter 11 proceeding; competitive responses to the announcement or completion of the proposed transaction; risks related to investor and rating agency perceptions of each of the parties and their respective business, operations, financial condition and the industry in which they operate; risks related to the potential impact of general economic, political and market factors on the companies or the proposed transaction; the impacts of Frontier’s significant amount of financial leverage from fixed obligations, the possibility Frontier may seek material amounts of additional financial liquidity in the short-term and the impacts of insufficient liquidity on Frontier’s financial condition and business; failure to comply with the covenants in Frontier’s financing agreements or failure to comply with financial and other covenants governing Frontier’s other debt; changes in, or failure to retain, Frontier’s senior management team or other key employees; current or future litigation and regulatory actions, including in relation to the proposed transaction, or failure to comply with the terms of any settlement, order or arrangement relating to these actions; increases in insurance costs or inadequate insurance coverage; and other risks and uncertainties set forth from time to time under the sections captioned “Risk Factors” in Frontier’s reports and other documents filed with the Securities and Exchange Commission (the “SEC”), including Frontier’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on February 20, 2024, and Frontier’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, which was filed with the SEC on May 2, 2024.

Contacts

Investor inquiries:

David Erdman, Investor Relations
Email: [email protected]
Phone: 720.798.5886

Media inquiries:

Jennifer F. de la Cruz, Corporate Communications
Email: [email protected]
Phone: 720.374.4207

View original content to download multimedia:https://www.prnewswire.com/news-releases/frontier-airlines-confirms-compelling-proposal-to-combine-with-spirit-airlines-302363203.html

SOURCE Frontier Group Holdings, Inc.

Posted on January 29, 2025 7:12 am
Nasdaq Announces Quarterly Dividend of $0.24 Per Share

NEW YORK, Jan. 29, 2025 (GLOBE NEWSWIRE) — The Board of Directors of Nasdaq, Inc. (Nasdaq: NDAQ) has declared a regular quarterly dividend of $0.24 per share on the company’s outstanding common stock. The dividend is payable on March 28, 2025 to shareholders of record at the close of business on March 14, 2025. Future declarations of quarterly dividends and the establishment of future record and payment dates are subject to approval by the Board of Directors.

About Nasdaq

Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.

Cautionary Note Regarding Forward-Looking Statements

Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to, information regarding our dividend program and future payment obligations. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, Nasdaq’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in Nasdaq’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q which are available on Nasdaq’s investor relations website at http://ir.nasdaq.com and the SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Media Relations Contacts:

Nick Jannuzzi
+1.973.760.1741
[email protected]

Nick Eghtessad
+1.929.996.8894
[email protected]

Investor Relations Contact:

Ato Garrett
+1.212.401.8737
[email protected]

-NDAQF-

Posted on January 29, 2025 7:12 am
Precision BioSciences Strengthens Senior Leadership Team to Drive Multiple In Vivo Gene Editing Programs

Precision BioSciences Strengthens Senior Leadership Team to Drive Multiple In Vivo Gene Editing Programs

– Cindy Atwell, promoted to Chief Development and Business Officer-

– Cassie Gorsuch, PhD, promoted to Chief Scientific Officer –

DURHAM, N.C.–(BUSINESS WIRE)–
Precision BioSciences, Inc. (Nasdaq: DTIL), a clinical stage gene editing company utilizing its novel proprietary ARCUS^® platform to develop in vivo gene editing therapies, including gene elimination, gene insertion, and gene excision programs, today announced enhancements within the Company’s senior leadership team. Precision continues to progress its lead in vivo gene editing program, PBGENE-HBV, through Phase 1 clinical study, while preparing to advance additional in vivo programs into clinic.

Cindy Atwell is appointed to Chief Development and Business Officer where she will oversee all development functions for Precision including clinical, translational, regulatory, program leadership and management in addition to business development and alliance oversight. Ms. Atwell’s responsibilities will include oversight over Precision’s lead clinical stage PBGENE-HBV program, as well as the Company’s next in vivo gene editing programs. Ms. Atwell joined Precision BioSciences in 2019 and has served as the Company’s Chief Business Officer since 2022. Ms. Atwell has been instrumental in delivering multiple partnerships and business development deals for Precision while also overseeing the Company’s alliance and program management teams. Ms. Atwell has over twenty years of multi-disciplinary experience in the biopharma industry, holding various positions across business development and clinical research at Halozyme, AbbVie, Amylin, and other biotech companies. Cindy holds an MBA from the University of California, San Diego and a Bachelor of Science in biochemistry and molecular biology from the Pennsylvania State University.

Additionally, Cassie Gorsuch, PhD has been promoted to Chief Scientific Officer overseeing non-clinical development and gene therapy discovery. Dr. Gorsuch will be responsible for preclinical proof of concept and IND-enabling data to support advancement to clinical studies. Dr. Gorsuch most recently served as Precision’s Vice President of Gene Therapy Discovery. Dr. Gorsuch has been instrumental in the advancement of the PBGENE-HBV program through preclinical studies and into the clinic. Dr. Gorsuch will continue to support external engagement and education regarding ARCUS and Precision’s gene editing efforts. Dr. Gorsuch earned her PhD in biological sciences from the University of Notre Dame and a Bachelor of Science in biochemistry from Rockhurst University.

“I’m delighted to announce the well-deserved promotion of Cindy Atwell who has been instrumental in driving program teams to successful regulatory milestones while also bolstering Precision’s development capabilities through key external partnerships,” said Michael Amoroso, Chief Executive Officer of Precision Biosciences. “Her perseverance and dedication to Precision BioSciences has enabled us to fully pivot into an in vivo gene editing company and advance our own programs into the clinic, starting with our PBGENE-HBV program that remains on track with anticipated Phase 1 clinical data milestones in 2025.”

“I am thrilled to announce the promotion of Dr. Cassie Gorsuch who has already established herself as a leader of our company both internally and externally with our various stakeholders,” said Dr. Jeff Smith, Co-Founder and Chief Research Officer. “As a pioneering clinical stage in vivo gene editing company, it’s critical that our preclinical efforts translate into clinical success, and having Cassie oversee non-clinical development and gene therapy discovery while working alongside me strengthens our capabilities and scientific leadership team.”

In addition to these changes, Sam Wadsworth, PhD, has notified us of his intent to retire from Board work and has stepped away from his Director role at Precision BioSciences. “We thank Sam for his steadfast commitment to our Science and Technology Committee and the valuable contributions he has made during his time with the Precision team. We wish him well in future endeavors,” added Mr. Amoroso.

About Precision BioSciences, Inc.

Precision BioSciences, Inc. is a clinical stage gene editing company dedicated to improving life (DTIL) with its novel and proprietary ARCUS® genome editing platform that differs from other technologies in the way it cuts, its smaller size, and its simpler structure. Key capabilities and differentiating characteristics may enable ARCUS nucleases to drive more intended, defined therapeutic outcomes. Using ARCUS, the Company’s pipeline is comprised of in vivo gene editing candidates designed to deliver lasting cures for the broadest range of genetic and infectious diseases where no adequate treatments exist. For more information about Precision BioSciences, please visit www.precisionbiosciences.com.

The ARCUS^® platform is being used to develop in vivo gene editing therapies for sophisticated gene edits, including gene insertion (inserting DNA into gene to cause expression/add function), elimination (removing a genome e.g. viral DNA or mutant mitochondrial DNA), and excision (removing a large portion of a defective gene by delivering two ARCUS nucleases in a single AAV).

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the clinical development and expected safety, efficacy and benefit of our product candidates and gene editing approaches and those of our collaborators including editing efficiency; the design of PBGENE-HBV to directly eliminate cccDNA and inactivate integrated HBV DNA with high specificity, potentially leading to functional cures; the suitability of ARCUS nucleases for gene elimination, insertion and excision and differentiation from other gene editing approaches due to its small size, simplicity and distinctive cut; the expected timing of regulatory processes (including filings such as IND’s and CTA’s and studies for PBGENE-HBV) and additional programs; expectations about operational initiatives, strategies, and further development of our programs and those of our collaborators; expectations about achievement of key milestones; and anticipated timing of clinical data. In some cases, you can identify forward-looking statements by terms such as “aim,” “anticipate,” “approach,” “believe,” “contemplate,” “could,” “designed,” “estimate,” “expect,” “goal,” “intend,” “look,” “may,” “mission,” “plan,” “possible,” “potential,” “predict,” “project,” “pursue,” “should,” “strive,” “target,” “will,” “would,” or the negative thereof and similar words and expressions.

Forward-looking statements are based on management’s current expectations, beliefs, and assumptions and on information currently available to us. These statements are neither promises nor guarantees, and involve a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various important factors, including, but not limited to, our ability to become profitable; our ability to procure sufficient funding to advance our programs; risks associated with our capital requirements, anticipated cash runway, requirements under our current debt instruments and effects of restrictions thereunder, including our ability to raise additional capital due to market conditions and/or our market capitalization; our operating expenses and our ability to predict what those expenses will be; our limited operating history; the progression and success of our programs and product candidates in which we expend our resources; our limited ability or inability to assess the safety and efficacy of our product candidates; the risk that other genome-editing technologies may provide significant advantages over our ARCUS technology; our dependence on our ARCUS technology; the initiation, cost, timing, progress, achievement of milestones and results of research and development activities and preclinical and clinical studies, including clinical trial and investigational new drug applications; public perception about genome editing technology and its applications; competition in the genome editing, biopharmaceutical, and biotechnology fields; our or our collaborators’ or other licensees’ ability to identify, develop and commercialize product candidates; pending and potential product liability lawsuits and penalties against us or our collaborators or other licensees related to our technology and our product candidates; the US and foreign regulatory landscape applicable to our and our collaborators’ or other licensees’ development of product candidates; our or our collaborators’ or other licensees’ ability to advance product candidates into, and successfully design, implement and complete, clinical trials; potential manufacturing problems associated with the development or commercialization of any of our product candidates; delays or difficulties in our and our collaborators’ and other licensees’ ability to enroll patients; changes in interim “top-line” and initial data that we announce or publish; if our product candidates do not work as intended or cause undesirable side effects; risks associated with applicable healthcare, data protection, privacy and security regulations and our compliance therewith; our or our licensees’ ability to obtain orphan drug designation or fast track designation for our product candidates or to realize the expected benefits of these designations; our or our collaborators’ or other licensees’ ability to obtain and maintain regulatory approval of our product candidates, and any related restrictions, limitations and/or warnings in the label of an approved product candidate; the rate and degree of market acceptance of any of our product candidates; our ability to effectively manage the growth of our operations; our ability to attract, retain, and motivate executives and personnel; effects of system failures and security breaches; insurance expenses and exposure to uninsured liabilities; effects of tax rules; effects of any pandemic, epidemic, or outbreak of an infectious disease; the success of our existing collaboration and other license agreements, and our ability to enter into new collaboration arrangements; our current and future relationships with and reliance on third parties including suppliers and manufacturers; our ability to obtain and maintain intellectual property protection for our technology and any of our product candidates; potential litigation relating to infringement or misappropriation of intellectual property rights; effects of natural and manmade disasters, public health emergencies and other natural catastrophic events; effects of sustained inflation, supply chain disruptions and major central bank policy actions; market and economic conditions; risks related to ownership of our common stock, including fluctuations in our stock price; our ability to meet the requirements of and maintain listing of our common stock on Nasdaq or other public stock exchanges; and other important factors discussed under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, as any such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investors page of our website under SEC Filings at investor.precisionbiosciences.com.

All forward-looking statements speak only as of the date of this press release and, except as required by applicable law, we have no obligation to update or revise any forward-looking statements contained herein, whether as a result of any new information, future events, changed circumstances or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250129677333/en/

Investor Contact:

Naresh Tanna

Vice President, Investor Relations

[email protected]

KEYWORDS: United States North America North Carolina

INDUSTRY KEYWORDS: Health Stem Cells Genetics Clinical Trials Research Science Biotechnology

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Posted on January 29, 2025 7:12 am
Waldencast Announces Participation in the 2025 IMCAS World Congress

LONDON, Jan. 29, 2025 (GLOBE NEWSWIRE) — Waldencast plc, (NASDAQ: WALD) (“Waldencast”), a global multi-brand beauty and wellness platform, today announced its participation in the 2025 International Master Course on Aging Science (IMCAS) World Congress, which will be held in Paris from January 30, 2025 to February 1, 2025.

The IMCAS World Congress is one of the most highly anticipated events in the dermatology, plastic surgery, and aging science community. It gathers industry leaders and executives to discuss the latest breakthroughs, innovations, and business opportunities.

Michel Brousset, Founder and Chief Executive Officer, will participate in a capital markets roundtable where he will discuss the future of medical grade skincare and the overall beauty and aesthetics industry.

Additionally, Dr. Suzan Obagi, Chief Medical Director at Obagi Medical, will participate in two sessions at the event. The first is a lecture titled “Pairing Skincare with Procedures to Enhance Results and Minimize Complications,” which will focus on the complications of energy-based devices and how to minimize the effects. The second is a scientific committee symposium focused on hyperpigmentation.

About Waldencast

Founded by Michel Brousset and Hind Sebti, Waldencast’s ambition is to build a global best-in-class beauty and wellness operating platform by developing, acquiring, accelerating, and scaling conscious, high-growth purpose-driven brands. Waldencast’s vision is fundamentally underpinned by its brand-led business model that ensures proximity to its customers, business agility, and market responsiveness, while maintaining each brand’s distinct DNA. The first step in realizing its vision was the business combination with Obagi Skincare and Milk Makeup. As part of the Waldencast platform, its brands will benefit from the operational scale of a multi-brand platform; the expertise in managing global beauty brands at scale; a balanced portfolio to mitigate category fluctuations; asset light efficiency; and the market responsiveness and speed of entrepreneurial indie brands. For more information please visit: https://ir.waldencast.com/.

About Obagi Medical

Obagi Medical is an industry-leading, advanced skincare line rooted in research and skin biology, refined with a legacy of 35 years’ experience. First known as leaders in the treatment of hyperpigmentation with the Obagi Nu-Derm^® System, Obagi products are designed to diminish the appearance of premature aging, photodamage, skin discoloration, acne, and sun damage. Backed by science and trusted by professionals, Obagi empowers individuals to achieve healthy, beautiful skin. More information about Obagi is available on the brand’s website, https://www.obagi.com.

About Suzan Obagi, MD

Suzan Obagi, MD Obagi is an Associate Professor of Dermatology and Plastic Surgery at the University of Pittsburgh Medical Center (UPMC) and serves as the director of the state-of-the-art UPMC Cosmetic Surgery and Skin Health Center. Dr. Obagi’s academic commitments include clinical research, training residents in dermatologic surgery & cosmetic dermatologic surgery, and in her role as the director of the cosmetic dermatologic surgery fellowship.

Dr. Obagi has worked on various committees with the American Society for Dermatologic Surgery, has formerly served as vice president of the American Board of Cosmetic Surgery and the President of the American Academy of Cosmetic Surgery, and is a past president of the Cosmetic Surgery Foundation. In addition, Dr. Obagi trains physicians from around the world on the latest in cosmetic and laser surgery.

Contacts

Investors

ICR
Allison Malkin
[email protected]

Media

ICR
Brittany Fraser/Alecia Pulman
[email protected]

Posted on January 29, 2025 7:11 am
Ceva, Inc. Appoints Amir Faintuch to its Board of Directors

PR Newswire

ROCKVILLE, Md.
, Jan. 29, 2025 /PRNewswire/ — Ceva, Inc. (NASDAQ: CEVA), the leading licensor of silicon and software IP that enables Smart Edge devices to connect, sense and infer data more reliably and efficiently, today announced the appointment of Amir Faintuch, a seasoned technology executive, to its Board of Directors as an independent director. He will also serve as a member of the Strategic Committee. This election expands Board membership to eight members, seven of whom are independent.

“We welcome Amir to the Ceva Board,” said Peter McManamon, Chairman of the Board of Ceva. “His extensive experience and deep expertise as a business and technology executive at some of the world’s leading semiconductor companies will provide the Ceva board and management team with valuable insights in leadership and strategy as we embark on our next phase of growth and expansion in the smart edge AI era.”

Amir Faintuch serves as the Chief Executive Officer of Volumez, a pioneering leader in Data Infrastructure as a Service (DIaaS) since December 2022. Previously, Amir held senior executive management positions spanning technical and business responsibilities at leading technology companies including: GlobalFoundries, where he was Senior Vice President and General Manager of the Computing, Wired Infrastructure and Storage business; Intel Corporation where he served as Senior Vice President and General Manager of Platform Engineering; and Qualcomm, where his roles included President of Qualcomm Atheros. Amir started his corporate career at Texas Instruments where he was responsible for establishing the company’s technical and market leadership in mobile connectivity technologies such as Bluetooth, Wi-Fi, GPS and NFC. Amir holds a bachelor’s degree in economics and business administration from Haifa University in Israel and a dual MBA degree in high technology management from the Kellogg School of Management at Northwestern University and the Recanati Business School at Tel Aviv University.

About Ceva, Inc.
At Ceva, we are passionate about bringing new levels of innovation to the smart edge. Our wireless communications, sensing and Edge AI technologies are at the heart of some of today’s most advanced smart edge products. From wireless connectivity IPs (Bluetooth, Wi-Fi, UWB and 5G platform IP), to scalable Edge AI NPU IPs and sensor fusion solutions, we have the broadest portfolio of IP to connect, sense and infer data more reliably and efficiently. We deliver differentiated solutions that combine outstanding performance at ultra-low power within a very small silicon footprint. Our goal is simple – to deliver the silicon and software IP to enable a smarter, safer, and more interconnected world. This philosophy is in practice today, with Ceva powering more than 18 billion of the world’s most innovative smart edge products from AI-infused smartwatches, IoT devices and wearables to autonomous vehicles and 5G mobile networks.

Our headquarters are in Rockville, Maryland with a global customer base supported by operations worldwide. Our employees are among the leading experts in their areas of specialty, consistently solving the most complex design challenges, enabling our customers to bring innovative smart edge products to market.

Ceva is a sustainability- and environmentally-conscious company, adhering to our Code of Business Conduct and Ethics. As such, we emphasize and focus on environmental preservation, recycling, the welfare of our employees and privacy – which we promote on a corporate level. At Ceva, we are committed to social responsibility, values of preservation and consciousness towards these purposes.

Ceva: Powering the Smart Edge™

Visit us at www.ceva-ip.com and follow us on LinkedIn, X, YouTube, Facebook, and Instagram.

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SOURCE Ceva, Inc.

Posted on January 29, 2025 7:11 am
General Dynamics Reports Fourth-Quarter and Full-Year 2024 Financial Results

PR Newswire

Fourth-quarter net earnings of $1.1 billion, diluted EPS of $4.15, on $13.3 billion in revenue

Full-year net earnings of $3.8 billion, diluted EPS of $13.63, on $47.7 billion in revenue

$2.2 billion net cash provided by operating activities in the quarter, 188% of net earnings

Ended the year with $90.6 billion in backlog

RESTON, Va.
, Jan. 29, 2025 /PRNewswire/ — General Dynamics (NYSE: GD) today reported quarterly net earnings of $1.1 billion, up 14.2% from the year-ago quarter, on revenue of $13.3 billion, up 14.3% over the year-ago quarter. Diluted earnings per share (EPS) was $4.15, up 14% from the year-ago quarter.

For the full year, net earnings were $3.8 billion, up 14.1% from 2023, on revenue of $47.7 billion, up 12.9% from 2023. Diluted EPS for the full year was $13.63, up 13.4% from 2023.

“We had a solid fourth quarter, capping off a year that saw steady growth in revenue and earnings across all four segments,” said Phebe N. Novakovic, chairman and chief executive officer. “Order activity continued to be very strong, with 1-to-1 book-to-bill for the year, even as revenue grew by 13%, positioning us well for continued growth.”

Gulfstream delivered 47 aircraft in the quarter, of which 42 were large-cabin aircraft. The company delivered a total of 136 aircraft during the year, of which 118 were large-cabin aircraft.

Cash
Net cash provided by operating activities in the quarter totaled $2.2 billion, or 188% of net earnings. For the year, net cash provided by operating activities totaled $4.1 billion, or 109% of net earnings.

During the year, the company invested $916 million in capital expenditures, made tax payments of $560 million, repaid fixed-rate notes of $500 million, and returned $3 billion to shareholders through dividends and share repurchases, ending 2024 with $1.7 billion in cash and equivalents on hand.

Backlog
Orders remained strong across the company with a consolidated book-to-bill ratio, defined as orders divided by revenue, of 0.9-to-1 for the quarter and 1-to-1 for the year. The company ended the year with backlog of $90.6 billion and estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, of $53.4 billion. Total estimated contract value, the sum of all backlog components, was $144 billion at year end, up 9.1% from a year earlier.

In the Aerospace segment, orders in the quarter totaled $3.8 billion. Backlog at the end of the year was $19.7 billion. Aerospace book-to-bill was 1-to-1 for the quarter and the year.

In the three defense segments, significant awards in the quarter include a U.S. Air Force contract with maximum potential value of $5.6 billion to modernize, integrate and operate the Department of Defense’s Mission Partner Environments (MPEs); a U.S. Space Force contract with maximum potential value of $2.2 billion to provide sustainment services for the Mobile User Objective System (MUOS) satellite communications system; $1.9 billion from the U.S. Navy for multiple contracts to provide services, materials and parts for Virginia-class submarines; $370 million from the U.S. Army for the production of 155mm artillery projectile metal parts; contracts for various munitions and ordnance with maximum potential value of $820 million; and several key contracts for classified customers with maximum potential value of $1.4 billion.

About General Dynamics
Headquartered in Reston, Virginia, General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 110,000 people worldwide and generated $47.7 billion in revenue in 2024. More information is available at www.gd.com.

WEBCAST INFORMATION: General Dynamics will webcast its fourth-quarter and full-year 2024 financial results conference call today at 9 a.m. EST. The webcast will be a listen-only audio event available at GD.com. An on-demand replay of the webcast will be available by telephone two hours after the end of the call through February 5 at 800-770-2030 (international +1 647-362-9199), conference ID 4299949. Charts furnished to investors and securities analysts in connection with the announcement of financial results are available at GD.com. General Dynamics intends to supplement those charts on its website after its earnings call today to include information about 2025 guidance presented during the call.

This press release contains forward-looking statements (FLS), including statements about the company‘s future operational and financial performance, which are based on management‘s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “forecasts,” “scheduled,” “outlook,” “estimates,” “should” and variations of these words and similar expressions are intended to identify FLS. In making FLS, we rely on assumptions and analyses based on our experience and perception of historical trends; current conditions and expected future developments; and other factors, estimates and judgments we consider reasonable and appropriate based on information available to us at the time. FLS are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. FLS are not guarantees of future performance and involve factors, risks and uncertainties that are difficult to predict. Actual future results and trends may differ materially from what is forecast in the FLS. All FLS speak only as of the date they were made. We do not undertake any obligation to update or publicly release revisions to FLS to reflect events, circumstances or changes in expectations after the date of this press release. Additional information regarding these factors is contained in the company‘s filings with the SEC, and these factors may be revised or supplemented in future SEC filings. In addition, this press release contains some financial measures not prepared in accordance with U.S. generally accepted accounting principles (GAAP). While we believe these non-GAAP metrics provide useful information for investors, there are limitations associated with their use, and our calculations of these metrics may not be comparable to similarly titled measures of other companies. Non-GAAP metrics should not be considered in isolation from, or as a substitute for, GAAP measures. Reconciliations to comparable GAAP measures and other information relating to our non-GAAP measures are included in other filings with the SEC, which are available at investorrelations.gd.com.

EXHIBIT A

CONSOLIDATED STATEMENT OF EARNINGS – (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Three Months Ended December 31

Variance

2024

2023

$

%

Revenue

$ 13,338

$ 11,668

$ 1,670

14.3 %

Operating costs and expenses

(11,915)

(10,380)

(1,535)

Operating earnings

1,423

1,288

135

10.5 %

Other, net

21

17

4

Interest, net

(76)

(78)

2

Earnings before income tax

1,368

1,227

141

11.5 %

Provision for income tax, net

(220)

(222)

2

Net earnings

$ 1,148

$ 1,005

$ 143

14.2 %

Earnings per share—basic

$ 4.20

$ 3.68

$ 0.52

14.1 %

Basic weighted average shares outstanding

273.4

272.8

Earnings per share—diluted

$ 4.15

$ 3.64

$ 0.51

14.0 %

Diluted weighted average shares outstanding

276.9

275.9

EXHIBIT B

CONSOLIDATED STATEMENT OF EARNINGS – (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Year Ended December 31

Variance

2024

2023

$

%

Revenue

$ 47,716

$ 42,272

$ 5,444

12.9 %

Operating costs and expenses

(42,920)

(38,027)

(4,893)

Operating earnings

4,796

4,245

551

13.0 %

Other, net

68

82

(14)

Interest, net

(324)

(343)

19

Earnings before income tax

4,540

3,984

556

14.0 %

Provision for income tax, net

(758)

(669)

(89)

Net earnings

$ 3,782

$ 3,315

$ 467

14.1 %

Earnings per share—basic

$ 13.81

$ 12.14

$ 1.67

13.8 %

Basic weighted average shares outstanding

273.9

273.1

Earnings per share—diluted

$ 13.63

$ 12.02

$ 1.61

13.4 %

Diluted weighted average shares outstanding

277.5

275.7

EXHIBIT C

REVENUE AND OPERATING EARNINGS BY SEGMENT – (UNAUDITED)

DOLLARS IN MILLIONS

Three Months Ended December 31

Variance

2024

2023

$

%

Revenue:

Aerospace

$                  3,743

$                   2,744

$ 999

36.4 %

Marine Systems

3,960

3,408

552

16.2 %

Combat Systems

2,395

2,364

31

1.3 %

Technologies

3,240

3,152

88

2.8 %

Total

$                13,338

$                 11,668

$ 1,670

14.3 %

Operating earnings:

Aerospace

$                     585

$                      449

$ 136

30.3 %

Marine Systems

200

217

(17)

(7.8) %

Combat Systems

356

351

5

1.4 %

Technologies

319

305

14

4.6 %

Corporate

(37)

(34)

(3)

(8.8) %

Total

$                  1,423

$                   1,288

$ 135

10.5 %

Operating margin

:

Aerospace

15.6 %

16.4 %

Marine Systems

5.1 %

6.4 %

Combat Systems

14.9 %

14.8 %

Technologies

9.8 %

9.7 %

Total

10.7 %

11.0 %

EXHIBIT D

REVENUE AND OPERATING EARNINGS BY SEGMENT – (UNAUDITED)

DOLLARS IN MILLIONS

Year Ended December 31

Variance

2024

2023

$

%

Revenue:

Aerospace

$                11,249

$                   8,621

$ 2,628

30.5 %

Marine Systems

14,343

12,461

1,882

15.1 %

Combat Systems

8,997

8,268

729

8.8 %

Technologies

13,127

12,922

205

1.6 %

Total

$                47,716

$                 42,272

$ 5,444

12.9 %

Operating earnings:

Aerospace

$                  1,464

$                   1,182

$ 282

23.9 %

Marine Systems

935

874

61

7.0 %

Combat Systems

1,276

1,147

129

11.2 %

Technologies

1,260

1,202

58

4.8 %

Corporate

(139)

(160)

21

13.1 %

Total

$                  4,796

$                   4,245

$ 551

13.0 %

Operating margin:

Aerospace

13.0 %

13.7 %

Marine Systems

6.5 %

7.0 %

Combat Systems

14.2 %

13.9 %

Technologies

9.6 %

9.3 %

Total

10.1 %

10.0 %

EXHIBIT E

CONSOLIDATED BALANCE SHEET

DOLLARS IN MILLIONS

(Unaudited)

December 31, 2024

December 31, 2023

ASSETS

Current assets:

Cash and equivalents

$                        1,697

$                        1,913

Accounts receivable

2,977

3,004

Unbilled receivables

8,248

7,997

Inventories

9,724

8,578

Other current assets

1,740

2,123

Total current assets

24,386

23,615

Noncurrent assets:

Property, plant and equipment, net

6,467

6,198

Intangible assets, net

1,520

1,656

Goodwill

20,556

20,586

Other assets

2,951

2,755

Total noncurrent assets

31,494

31,195

Total assets

$                      55,880

$                      54,810

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Short-term debt and current portion of long-term debt

$                        1,502

$                           507

Accounts payable

3,344

3,095

Customer advances and deposits

9,491

9,564

Other current liabilities

3,487

3,266

Total current liabilities

17,824

16,432

Noncurrent liabilities:

Long-term debt

7,260

8,754

Other liabilities

8,733

8,325

Total noncurrent liabilities

15,993

17,079

Shareholders’ equity:

Common stock

482

482

Surplus

4,062

3,760

Retained earnings

41,487

39,270

Treasury stock

(22,450)

(21,054)

Accumulated other comprehensive loss

(1,518)

(1,159)

Total shareholders’ equity

22,063

21,299

Total liabilities and shareholders’ equity

$                      55,880

$                      54,810

EXHIBIT F

CONSOLIDATED STATEMENT OF CASH FLOWS – (UNAUDITED)

DOLLARS IN MILLIONS

Year Ended December 31

2024

2023

Cash flows from operating activities—continuing operations:

Net earnings

$                      3,782

$                      3,315

Adjustments to reconcile net earnings to net cash from operating activities:

Depreciation of property, plant and equipment

644

608

Amortization of intangible and finance lease right-of-use assets

242

255

Equity-based compensation expense

183

181

Deferred income tax benefit

(86)

(177)

(Increase) decrease in assets, net of effects of business acquisitions:

Accounts receivable

16

38

Unbilled receivables

(261)

913

Inventories

(1,195)

(2,219)

Increase (decrease) in liabilities, net of effects of business acquisitions:

Accounts payable

247

(303)

Customer advances and deposits

343

2,415

Income taxes payable

266

(209)

Other, net

(69)

(107)

Net cash provided by operating activities

4,112

4,710

Cash flows from investing activities:

Capital expenditures

(916)

(904)

Other, net

(37)

(37)

Net cash used by investing activities

(953)

(941)

Cash flows from financing activities:

Dividends paid

(1,529)

(1,428)

Purchases of common stock

(1,501)

(434)

Repayment of fixed-rate notes

(500)

(1,250)

Other, net

161

18

Net cash used by financing activities

(3,369)

(3,094)

Net cash used by discontinued operations

(6)

(4)

Net (decrease) increase in cash and equivalents

(216)

671

Cash and equivalents at beginning of year

1,913

1,242

Cash and equivalents at end of year

$                      1,697

$                      1,913

EXHIBIT G

ADDITIONAL FINANCIAL INFORMATION – (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

Other Financial Information:

December 31, 2024

December 31, 2023

Debt-to-equity (a)

39.7 %

43.5 %

Book value per share (b)

$                 81.61

$                 77.85

Shares outstanding

270,340,502

273,599,948

Fourth Quarter

Twelve Months

2024

2023

2024

2023

Income tax payments, net

$                    435

$                    607

$                   560

$                1,100

Company-sponsored research and

development (c)

$                    144

$                    115

$                   565

$                   510

Return on sales (d)

8.6 %

8.6 %

7.9 %

7.8 %

Return on equity (e)

17.2 %

16.8 %

Non-GAAP Financial Measures:

Fourth Quarter

Twelve Months

2024

2023

2024

2023

Free cash flow:

Net cash provided by operating activities

$                 2,160

$                 1,196

$                4,112

$                4,710

Capital expenditures

(355)

(304)

(916)

(904)

Free cash flow (f)

$                 1,805

$                    892

$                3,196

$                3,806

Return on invested capital:

Net earnings

$                3,782

$                3,315

After-tax interest expense

310

315

After-tax amortization expense

191

201

Net operating profit after taxes

4,283

3,831

Average invested capital

32,451

31,258

Return on invested capital (g)

13.2 %

12.3 %

December 31, 2024

December 31, 2023

Net debt:

Total debt

$                 8,762

$                 9,261

Less cash and equivalents

1,697

1,913

Net debt (h)

$                 7,065

$                 7,348

Notes describing the calculation of the other financial information and a reconciliation of non-GAAP financial measures are on the following page.

EXHIBIT G (Cont.)

ADDITIONAL FINANCIAL INFORMATION – (UNAUDITED)

DOLLARS IN MILLIONS, EXCEPT PER SHARE AMOUNTS

(a)

Debt-to-equity ratio is calculated as total debt divided by total equity as of year end.

(b)

Book value per share is calculated as total equity divided by total outstanding shares as of year end.

(c)

Includes independent research and development and Aerospace product-development costs.

(d)

Return on sales is calculated as net earnings divided by revenue.

(e)

Return on equity is calculated by dividing net earnings by our average total equity during the year. Average total equity is calculated using

the total equity balance at the end of the preceding year and the total equity balances at the end of each of the four quarters of the year

presented.

(f)

We define free cash flow as net cash from operating activities less capital expenditures. We believe free cash flow is a useful measure for

investors because it portrays our ability to generate cash from our businesses for purposes such as repaying debt, funding business

acquisitions, repurchasing our common stock and paying dividends. We use free cash flow to assess the quality of our earnings and as a

key performance measure in evaluating management.

(g)

We believe return on invested capital (ROIC) is a useful measure for investors because it reflects our ability to generate returns from the

capital we have deployed in our operations. We use ROIC to evaluate investment decisions and as a performance measure in evaluating

management. We define ROIC as net operating profit after taxes divided by average invested capital. Net operating profit after taxes is

defined as net earnings plus after-tax interest and amortization expense, calculated using the statutory federal income tax rate. Average

invested capital is defined as the sum of the average debt and average shareholders’ equity excluding accumulated other comprehensive

loss. Average debt and average shareholders’ equity excluding accumulated other comprehensive loss are calculated using the respective

balances at the end of the preceding year and the respective balances at the end of each of the four quarters of the year presented. ROIC

excludes goodwill impairments and non-economic accounting changes as they are not reflective of company performance.

(h)

We define net debt as short- and long-term debt (total debt) less cash and equivalents. We believe net debt is a useful measure for investors

because it reflects the borrowings that support our operations and capital deployment strategy. We use net debt as an important indicator of

liquidity and financial position.

EXHIBIT H

BACKLOG – (UNAUDITED)

DOLLARS IN MILLIONS

Funded

Unfunded

Total

Backlog

Estimated

Potential

Contract Value*

Total

Estimated

Contract Value

Fourth Quarter 2024:

Aerospace

$            18,895

$                 798

$            19,693

$                  1,132

$                20,825

Marine Systems

30,530

9,288

39,818

9,560

49,378

Combat Systems

16,142

838

16,980

8,647

25,627

Technologies

9,577

4,529

14,106

34,029

48,135

Total

$            75,144

$            15,453

$            90,597

$                53,368

$              143,965

Third Quarter 2024:

Aerospace

$            18,859

$                 937

$            19,796

$                     254

$                20,050

Marine Systems

29,008

11,463

40,471

9,578

50,049

Combat Systems

17,289

682

17,971

8,016

25,987

Technologies

9,794

4,602

14,396

27,093

41,489

Total

$            74,950

$            17,684

$            92,634

$                44,941

$              137,575

Fourth Quarter 2023:

Aerospace

$            19,557

$                 897

$            20,454

$                     451

$                20,905

Marine Systems

30,141

15,755

45,896

3,647

49,543

Combat Systems

13,816

721

14,537

6,236

20,773

Technologies

8,961

3,779

12,740

28,011

40,751

Total

$            72,475

$            21,152

$            93,627

$                38,345

$              131,972

*     The estimated potential contract value includes work awarded on unfunded indefinite delivery, indefinite quantity (IDIQ) contracts

and unexercised options associated with existing firm contracts, including options and other agreements with existing customers

to purchase new aircraft and aircraft services. We recognize options in backlog when the customer exercises the option and

establishes a firm order. For IDIQ contracts, we evaluate the amount of funding we expect to receive and include this amount in our

estimated potential contract value. The actual amount of funding received in the future may be higher or lower than our estimate of

potential contract value.

EXHIBIT H-1

BACKLOG – (UNAUDITED)

DOLLARS IN MILLIONS

https://mma.prnewswire.com/media/2607828/EXHIBIT_H_1.jpg

EXHIBIT H-2

BACKLOG BY SEGMENT – (UNAUDITED)
DOLLARS IN MILLIONS

https://mma.prnewswire.com/media/2607827/EXHIBIT_H_2.jpg

EXHIBIT I

FOURTH QUARTER 2024 SIGNIFICANT ORDERS – (UNAUDITED)

DOLLARS IN MILLIONS

We received the following significant contract awards during the fourth quarter of 2024:

Marine Systems:

$880 from the U.S. Navy for long-lead materials for Block V Virginia-class submarines.

$375 from the Navy for lead yard services, development studies and design efforts for Virginia-class submarines.

$350 from the Navy for long-lead materials for Block VI Virginia-class submarines.

$245 from the Navy for procurement and delivery of initial Virginia-class spare parts to support maintenance availabilities.

$230 from the Navy to provide engineering, technical, design and planning yard support services for operational strategic and attack submarines.

$80 from the Navy for maintenance and modernization work on the USS Hartford, a Los Angeles-class submarine.

Combat Systems:

$505 for various munitions and ordnance. These contracts have a maximum potential value of $820.

$370 from the U.S. Army for the production of 155mm artillery projectile metal parts.

$65 to provide configuration changes for Canadian light armored vehicles (LAV).

$50 to produce launch pod containers for the Guided Multiple Launch Rocket System (GMLRS) for the Army.

Technologies:

$50 from the U.S. Air Force to modernize, integrate and operate the Department of Defense’s Mission Partner Environments (MPEs), enabling the military and its partners to securely communicate and share real-time information at multiple levels of classification. The contract has a maximum potential value of $5.6 billion.

A contract from the U.S. Space Force to provide sustainment services for the Mobile User Objective System (MUOS) satellite communications system. The contract has a maximum potential value of $2.2 billion.

$305 for several key contracts for classified customers. These contracts including options have a maximum potential value of $1.4 billion.

$140 from the Navy to manufacture and test various components for MK54 torpedoes and for general engineering services. The contract including options has a maximum potential value of $810.

$280 for two awards from the New York State Department of Health to operate and modernize the state’s health insurance exchange and to support and enhance the state’s Medicaid Management Information System. These contracts including options have a maximum potential value of $480.

$115 from the Department of Veteran Affairs (VA) under the Veterans Intake, Conversion and Communications Services (VICCS) program to digitally convert historical veteran records and automate data extraction of existing records. The contract including options has a maximum potential value of $345.

A contract from the VA to provide information technology (IT) support services to more than 600,000 VA personnel at all VA locations nationwide. The contract including options has a maximum potential value of $230.

$155 from the National Geospatial-Intelligence Agency (NGA) to provide hybrid cloud services and IT design, engineering, and operations and sustainment services.

EXHIBIT J

AEROSPACE SUPPLEMENTAL DATA – (UNAUDITED)

DOLLARS IN MILLIONS

Fourth Quarter

Twelve Months

2024

2023

2024

2023

Gulfstream Aircraft Deliveries (units):

Large-cabin aircraft

42

32

118

89

Mid-cabin aircraft

5

7

18

22

Total

47

39

136

111

Aerospace Book-to-Bill:

Orders*

$              3,814

$              3,164

$            11,278

$            10,283

Revenue

3,743

2,744

11,249

8,621

Book-to-Bill Ratio

1.0x

1.2x

1.0x

1.2x

*     Does not include customer defaults, liquidated damages, cancellations, foreign exchange fluctuations and other backlog

adjustments.

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SOURCE General Dynamics

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