Market Newsdesk

May 7, 2025 6:35 am

BIO-TECHNE RELEASES THIRD QUARTER FISCAL 2025 RESULTS

PR Newswire

MINNEAPOLIS
, May 7, 2025 /PRNewswire/ — Bio-Techne Corporation (NASDAQ: TECH) today reported its financial results for the third quarter ending March 31, 2025.

Third Quarter FY2025 Highlights

Third quarter organic revenue increased by 6% (4% reported) to $316.2 million.
GAAP earnings per share (EPS) was $0.14 versus $0.31 one year ago. Delivered adjusted EPS of $0.56 compared to $0.48 one year ago.
Improved pharma end market conditions, combined with strong commercial execution in Protein Sciences led to 7% organic growth (6% reported) in the segment.
Delivered adjusted operating margin of 34.9% (12.2% reported) compared to 33.0% (22.1% reported) in the prior year driven by profitability initiatives and volume leverage.

The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States (GAAP). Adjusted diluted EPS, adjusted net earnings, adjusted gross margin, adjusted operating income, adjusted tax rate, organic revenue, adjusted operating margin, earnings before interest, taxes, depreciation, and amortization (EBITDA), and adjusted EBITDA are non-GAAP measures that exclude certain items detailed later in this press release under the heading “Use of non-GAAP Adjusted Financial Measures.” A reconciliation of GAAP to non-GAAP financial measures is included in this press release.

“Despite a dynamic macroenvironment, the Bio-Techne team once again executed at a high level and delivered strong third quarter results,” said Kim Kelderman, President and Chief Executive Officer of Bio-Techne. “Our pharma end market continued to improve, especially from our large pharma partners, which led to a solid performance in our cell therapy and protein analysis instrumentation businesses. Our continued focus on profitability resulted in a 34.9% adjusted operating margin, an increase of 190 basis points compared to the prior year period.”

Kelderman added, “Our business remains well positioned both geographically and by end market, which paired with our experienced leadership team will enable the Company to successfully navigate the current operating environment. The portfolio we have built over the last five decades unlocks the scientific discoveries and diagnostic solutions that improve the quality of life and enable our differentiated financial performance.”

Bio-Techne will host an earnings conference call today, May 7, 2025, at 8:00 a.m. CDT. To listen, please dial 1-877-407-9208 or 1-201-493-6784 (for international callers), and reference conference ID 13753150. The earnings call can also be accessed via webcast through the following link https://investors.bio-techne.com/ir-calendar.

A recorded rebroadcast will be available for interested parties unable to participate in the live conference call by dialing 1-844-512- 2921 or 1-412-317-6671 (for international callers) and referencing Conference ID 13753150. The replay will be available from 11:00 a.m. CDT on Wednesday, May 7, 2025, until 11:00 p.m. CDT on Saturday, June 7, 2025.

Third Quarter Fiscal 2025

Revenue

Net sales for the third quarter increased 4% to $316.2 million. Organic revenue increased 6% compared to the prior year. Foreign currency exchange and non-recurring prior year revenue from a business held-for-sale each had an unfavorable impact of 1%.

GAAP Earnings Results

GAAP EPS was $0.14 per diluted share, versus $0.31 in the same quarter last year. GAAP operating income for the third quarter of fiscal 2025 decreased 42% to $38.7 million, compared to $67.0 million in the third quarter of fiscal 2024. GAAP operating margin was 12.2%, compared to 22.1% in the third quarter of fiscal 2024. Current quarter GAAP operating margin was unfavorably impacted by a non-recurring arbitration award.

Non-GAAP Earnings Results

Adjusted EPS increased to $0.56 per diluted share compared to $0.48 in the same quarter last year. Adjusted operating income for the third quarter of fiscal 2025 increased 11% to $110.3 million, compared to $99.6 million in the third quarter of fiscal 2024. Adjusted operating margin was 34.9% for the third quarter of fiscal 2025 compared to 33.0% in the third quarter of fiscal 2024. Adjusted operating margin was impacted by favorable volume leverage and profitability initiatives.

Segment Results

Management uses adjusted operating results to monitor and evaluate performance of the Company’s business segments, as highlighted below.

Protein Sciences Segment

The Company’s Protein Sciences segment is one of the world’s leading suppliers of specialized proteins such as cytokines and growth factors, immunoassays, antibodies and reagents, to the biopharma and academic research communities. Additionally, the segment provides multiple platforms useful in various areas of protein analysis. Protein Sciences segment’s third quarter fiscal 2025 net sales were $227.7 million, an increase of 6% from $214.6 million for the third quarter of fiscal 2024. As of December 31, 2023, a business within the Protein Sciences Segment met the criteria as held-for-sale; this held-for-sale business has been excluded from the segment’s operating results for both periods presented. Organic revenue growth was 7% for the third quarter of fiscal 2025, with foreign currency exchange having an unfavorable impact of 1%. The Protein Sciences segment’s operating margin increased to 45.6% in the third quarter of fiscal 2025 compared to 44.2% in the third quarter of fiscal 2024. The segment’s operating margin increased primarily due to favorable volume leverage and ongoing profitability initiatives.

Diagnostics and Spatial Biology Segment

The Company’s Diagnostics and Spatial Biology segment develops and provides spatial biology products, carrier screening and oncology kits, as well as exosome-based diagnostics for various pathologies, including prostate cancer. The Diagnostics and Spatial Biology segment also provides blood chemistry and blood gas quality controls, hematology instrument controls, immunoassays and other bulk and custom reagents for the in vitro diagnostic market. The Diagnostics and Spatial Biology segment’s third quarter fiscal 2025 net sales were $89.2 million, an increase of 2% from $87.5 million for the third quarter of fiscal 2024. Organic revenue growth was 2% for the third quarter of fiscal 2025, with foreign exchange not having a material impact. The Diagnostics and Spatial Biology segment’s operating margin of 9.4% in the third quarter of fiscal 2025 was relatively consistent with the segment’s prior year operating margin of 9.3%.

Use of non-GAAP Adjusted Financial Measures:

This press release contains financial measures that have not been calculated in accordance with accounting principles generally accepted in the U.S. These non-GAAP measures include:

Organic revenue
Adjusted diluted earnings per share
Adjusted net earnings
Adjusted tax rate
Adjusted gross margin
Adjusted operating income
Adjusted operating margin
Earnings before interest, taxes, depreciation, and amortization (EBITDA)
Adjusted EBITDA

We provide these measures as additional information regarding our operating results. We use these non-GAAP measures internally to evaluate our performance and in making financial and operational decisions, including with respect to incentive compensation. We believe that our presentation of these measures provides investors with greater transparency with respect to our results of operations and that these measures are useful for period-to-period comparison of results.

Our non-GAAP financial measure of organic revenue represents revenue growth excluding revenue from acquisitions within the preceding 12 months, the impact of foreign currency, the impact of businesses held-for-sale, as well as the impact of partially-owned consolidated subsidiaries. Excluding these measures provides more useful period-to-period comparison of revenue results as it excludes the impact of foreign currency exchange rates, which can vary significantly from period to period, and revenue from acquisitions that would not be included in the comparable prior period. Revenues from businesses held-for-sale are excluded from our organic revenue calculation starting on the date they become held-for-sale as those revenues will not be comparative in future periods. Revenues from partially-owned subsidiaries consolidated in our financial statements are also excluded from our organic revenue calculation, as those revenues are not fully attributable to the Company. There was no revenue from partially-owned consolidated subsidiaries in the fiscal years 2025 and 2024.

Our non-GAAP financial measures for adjusted gross margin, adjusted operating margin, adjusted EBITDA, and adjusted net earnings, in total and on a per share basis, exclude stock-based compensation, which is inclusive of the employer portion of payroll taxes on those stock awards, the costs recognized upon the sale of acquired inventory, amortization of acquisition intangibles, restructuring and restructuring-related costs. Stock-based compensation is excluded from non-GAAP adjusted net earnings because of the nature of this charge, specifically the varying available valuation methodologies, subjective assumptions, variety of award types, and unpredictability of amount and timing of employer related tax obligations. The Company excludes amortization of purchased intangible assets, purchase accounting adjustments, including costs recognized upon the sale of acquired inventory, and other non-recurring items including gains or losses on goodwill and long-lived asset impairment charges, and one-time assessments from this measure because they occur as a result of specific events, and are not reflective of our internal investments, the costs of developing, producing, supporting and selling our products, and the other ongoing costs to support our operating structure. Costs related to restructuring and restructuring-related activities, including reducing overhead and consolidating facilities, are excluded because we believe they are not indicative of our normal operating costs. Additionally, these amounts can vary significantly from period to period based on current activity. The Company also excludes revenue and expense attributable to partially-owned consolidated subsidiaries as well as revenue and expense attributable to businesses held-for-sale in the calculation of our non-GAAP financial measures.

The Company’s non-GAAP adjusted operating margin, adjusted EBITDA, and adjusted net earnings, in total and on a per share basis, also excludes acquisition related expenses inclusive of the changes in fair value of contingent consideration, and other non-recurring items including certain costs related to the transition to a new CEO, goodwill and long-lived asset impairments, and gains. We also exclude certain litigation charges which are facts and circumstances specific including costs to resolve litigation and legal settlement (gains and losses). In some cases, these costs may be a result of litigation matters at acquired companies that were not probable, inestimable, or unresolved at the time of acquisition.

The Company’s non-GAAP adjusted EBITDA and adjusted net earnings, in total and on a per share basis, also excludes gain and losses from investments, as they are not part of our day-to-day operating decisions (excluding our equity method investment in Wilson Wolf as it is certain to be acquired in the future) and certain adjustments to income tax expense. Additionally, gains and losses from investments that are either isolated or cannot be expected to occur again with any predictability are excluded. The Company independently calculates a non-GAAP adjusted tax rate to be applied to the identified non-GAAP adjustments considering the impact of discrete items on these adjustments and the jurisdictional mix of the adjustments. In addition, the tax impact of other discrete and non-recurring charges which impact our reported GAAP tax rate are adjusted from net earnings. We believe these tax items can significantly affect the period-over-period assessment of operating results and not necessarily reflect costs and/or income associated with historical trends and future results.

Investors are encouraged to review the reconciliations of adjusted financial measures used in this press release to their most directly comparable GAAP financial measures as provided with the financial statements attached to this press release.

Forward Looking Statements:

Our press releases may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Such statements involve risks and uncertainties that may affect the actual results of operations. The following important factors, among others, have affected and, in the future, could affect the Company’s actual results: the effect of new branding and marketing initiatives, the integration of new businesses and leadership, the introduction and acceptance of new products, the funding and focus of the types of research by the Company’s customers, the impact of the growing number of producers of biotechnology research products and related price competition, general economic conditions, the impact of currency exchange rate fluctuations, and the costs and results of research and product development efforts of the Company and of companies in which the Company has invested or with which it has formed strategic relationships.

For additional information concerning such factors, see the section titled “Risk Factors” in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements we make in our press releases due to new information or future events. Investors are cautioned not to place undue emphasis on these statements.

Bio-Techne Corporation (NASDAQ: TECH) is a global life sciences company providing innovative tools and bioactive reagents for the research and clinical diagnostic communities. Bio-Techne products assist scientific investigations into biological processes and the nature and progress of specific diseases. They aid in drug discovery efforts and provide the means for accurate clinical tests and diagnoses. With thousands of products in its portfolio, Bio-Techne generated approximately $1.2 billion in net sales in fiscal 2024 and has approximately 3,100 employees worldwide. For more information on Bio-Techne and its brands, please visit www.biotechne.com.

Contact:	David Clair, Vice President, Investor Relations & Corporate Development
	[email protected]
	612-656-4416

BIO-TECHNE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
(Unaudited)


	QUARTER				NINE MONTHS
	ENDED				ENDED
	3/31/2025		3/31/2024		3/31/2025		3/31/2024
Net sales	$	316,181	$	303,428	$	902,671	$	852,961
Cost of sales		101,625		98,829		311,211		286,584
Gross margin		214,556		204,599		591,460		566,377
Operating expenses:
Selling, general and administrative		151,269		111,840		391,881		332,839
Research and development		24,579		25,761		73,464		72,675
Total operating expenses		175,848		137,601		465,345		405,514
Operating income		38,708		66,998		126,115		160,863
Other income (expense)		(434)		(5,914)		(4,793)		(16,835)
Earnings before income taxes		38,274		61,084		121,322		144,028
Income taxes		15,686		12,025		30,244		16,511
Net earnings	$	22,588	$	49,059	$	91,078	$	127,517
Earnings per share:
Basic	$	0.14	$	0.31	$	0.58	$	0.81
Diluted	$	0.14	$	0.31	$	0.57	$	0.79
Weighted average common shares outstanding:
Basic		157,372		157,309		158,117		157,655
Diluted		158,944		160,496		160,662		160,817

BIO-TECHNE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

	3/31/2025		6/30/2024
ASSETS
Cash and equivalents	$	140,670	$	151,791
Short-term available-for-sale investments		—		1,072
Accounts receivable, net		237,140		241,394
Inventories		191,083		179,731
Current assets held-for-sale		4,700		9,773
Other current assets		53,647		33,658
Total current assets		627,240		617,419

Property and equipment, net		251,977		251,154
Right of use assets		83,744		91,285
Goodwill and intangible assets, net		1,412,311		1,479,744
Other assets		268,987		264,265
Total assets	$	2,644,259	$	2,703,867

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	$	117,445	$	112,672
Contract liabilities		32,269		27,930
Income taxes payable		3,628		3,706
Operating lease liabilities – current		14,049		12,920
Other current liabilities		1,813		2,151
Total current liabilities		169,204		159,379

Deferred income taxes		31,924		55,863
Long-term debt obligations		330,000		319,000
Operating lease liabilities		79,450		87,618
Other long-term liabilities		15,656		13,157
Stockholders’ equity		2,018,025		2,068,850
Total liabilities and stockholders’ equity	$	2,644,259	$	2,703,867

BIO-TECHNE CORPORATION
RECONCILIATION OF ADJUSTED GROSS MARGIN PERCENTAGE
(In thousands)
(Unaudited)


	QUARTER						NINE MONTHS
	ENDED						ENDED
	3/31/2025			3/31/2024			3/31/2025			3/31/2024
Total consolidated net sales	$	316,181		$	303,428		$	902,671		$	852,961
Business held-for-sale¹⁾		—			2,093			4,152			2,093
Revenue from recurring operations	$	316,181		$	301,335		$	898,519		$	850,868

Gross margin – GAAP	$	214,556		$	204,599		$	591,460		$	566,377
Gross margin percentage – GAAP		67.9	%		67.4	%		65.5	%		66.4	%

Identified adjustments:
Costs recognized upon sale of acquired inventory	$	181		$	186		$	554		$	550
Amortization of intangibles		11,057			11,362			33,467			35,018
Stock-based compensation, inclusive of employer taxes		378			125			1,010			594
Restructuring and restructuring-related costs		364			647			7,953			1,821
Impact of business held-for-sale¹⁾		—			272			(147)			272
Adjusted gross margin	$	226,536		$	217,191		$	634,297		$	604,632
Adjusted gross margin percentage²⁾		71.6	%		71.9	%		70.6	%		71.0	%


1)	Since December 31, 2023, the Company has a business that has met the held-for-sale criteria.
2)	Adjusted gross margin percentage excludes revenue of $4,152 for the nine months ended March 31, 2025, and revenue of $2,093 for the three and nine months ended March 31, 2024. Adjusted gross margin percentage also excludes gross margin of $ (147) for the nine months ended March 31, 2025, and gross margin of $272 for the three and nine months ended March 31, 2024, for a business that has met the held-for-sale criteria.

BIO-TECHNE CORPORATION
RECONCILIATION OF ADJUSTED OPERATING MARGIN PERCENTAGE
(In thousands)
(Unaudited)


	QUARTER						NINE MONTHS
	ENDED						ENDED
	3/31/2025			3/31/2024			3/31/2025			3/31/2024
Total consolidated net sales	$	316,181		$	303,428		$	902,671		$	852,961
Business held-for-sale¹⁾		—			2,093			4,152			2,093
Revenue from recurring operations	$	316,181		$	301,335		$	898,519		$	850,868

Operating income – GAAP	$	38,708		$	66,998		$	126,115		$	160,863
Operating income percentage – GAAP		12.2	%		22.1	%		14.0	%		18.9	%

Identified adjustments:
Costs recognized upon sale of acquired inventory	$	181		$	186		$	554		$	550
Amortization of intangibles		18,836			19,287			57,136			58,908
Acquisition related expenses and other		4,978			3,286			8,497			2,173
Certain litigation charges		38,927			—			40,606			—
Stock-based compensation, inclusive of employer taxes		11,629			8,358			37,504			32,810
Restructuring and restructuring-related costs		716			1,550			15,027			7,157
Impairment (recovery) of assets held-for-sale		(3,655)			—			(3,655)			6,038
Impact of business held-for-sale¹⁾		—			(78)			479			(78)
Adjusted operating income	$	110,320		$	99,587		$	282,263		$	268,421
Adjusted operating margin percentage²⁾		34.9	%		33.0	%		31.4	%		31.5	%


1)	Since December 31, 2023, the Company has a business that has met the held-for-sale criteria.
2)	Adjusted operating margin percentage excludes revenue of $4,152 for the nine months ended March 31, 2025, and revenue of $2,093 for the three and nine months ended March 31, 2024. Adjusted gross margin also excludes operating loss of $479 for the nine months ended March 31, 2025, and operating income of $78 for the three and nine months ended March 31, 2024, for a business that has met the held-for-sale criteria.

BIO-TECHNE CORPORATION
NON-GAAP ADJUSTED CONSOLIDATED NET EARNINGS and EARNINGS per SHARE
(In thousands, except per share data)
(Unaudited)


	QUARTER						NINE MONTHS
	ENDED						ENDED
	3/31/2025			3/31/2024			3/31/2025			3/31/2024
Net earnings before taxes – GAAP	$	38,274		$	61,084		$	121,322		$	144,028
Identified adjustments:
Costs recognized upon sale of acquired inventory		181			186			554			550
Amortization of intangibles		18,836			19,287			57,136			58,908
Amortization of Wilson Wolf intangible assets and acquired inventory		2,491			4,208			7,471			12,623
Acquisition related expenses and other		5,109			3,432			8,923			2,609
Certain litigation charges		38,927			—			40,606			—
Stock-based compensation, inclusive of employer taxes		11,629			8,358			37,504			32,810
Restructuring and restructuring-related costs		716			1,550			15,027			7,157
Investment (gain) loss and other non-operating		—			—			—			(283)
Impairment (recovery) of assets held-for-sale		(3,655)			—			(3,655)			6,038
Impact of business held-for-sale¹⁾		—			(78)			479			(78)
Net earnings before taxes – Adjusted	$	112,508		$	98,027		$	285,367		$	264,362
Non-GAAP tax rate		21.5	%		22.0	%		21.5	%		22.0	%
Non-GAAP tax expense	$	24,190		$	21,602		$	61,385		$	58,181
Non-GAAP adjusted net earnings	$	88,318		$	76,425		$	223,982		$	206,181
Earnings per share – diluted – Adjusted	$	0.56		$	0.48		$	1.39		$	1.28

¹⁾Since December 31, 2023, the Company has a business that has met the held-for-sale criteria.

BIO-TECHNE CORPORATION
NON-GAAP ADJUSTED TAX RATE
(In percentages)
(Unaudited)


	QUARTER				NINE MONTHS
	ENDED				ENDED
	3/31/2025		3/31/2024		3/31/2025		3/31/2024
GAAP effective tax rate	41.0	%	19.7	%	24.9	%	11.5	%
Discrete items	(19.5)		2.9		(1.8)		11.5
Annual forecast update	1.6		0.4		—		—
Long-term GAAP tax rate	23.1	%	23.0	%	23.1	%	23.0	%
Rate impact items
Stock based compensation	(1.0)	%	(2.0)	%	(3.8)	%	2.2	%
Other	(0.6)		1.0		2.2		(3.2)
Total rate impact items	(1.6)	%	(1.0)	%	(1.6)	%	(1.0)	%
Non-GAAP adjusted tax rate	21.5	%	22.0	%	21.5	%	22.0	%

BIO-TECHNE CORPORATION
SEGMENT REVENUE
(In thousands)
(Unaudited)


	QUARTER				NINE MONTHS
	ENDED				ENDED
	3/31/2025		3/31/2024		3/31/2025		3/31/2024
Protein Sciences segment revenue	$	227,687	$	214,589	$	643,774	$	616,914
Diagnostics and Spatial Biology segment revenue		89,231		87,511		256,558		235,715
Other revenue¹⁾		—		2,093		4,152		2,093
lntersegment revenue		(737)		(765)		(1,813)		(1,761)
Consolidated revenue	$	316,181	$	303,428	$	902,671	$	852,961

¹⁾Since December 31, 2023, the Company has a business that has met the held-for-sale criteria.

BIO-TECHNE CORPORATION
SEGMENT OPERATING INCOME
(In thousands)
(Unaudited)


	QUARTER				NINE MONTHS
	ENDED				ENDED
	3/31/2025		3/31/2024		3/31/2025		3/31/2024
Protein Sciences segment operating income	$	103,910	$	94,829	$	271,564	$	262,777
Diagnostics and Spatial Biology segment operating income		8,423		8,104		15,940		13,189
Segment operating income		112,333		102,933		287,504		275,966
Corporate general, selling, and administrative		(2,013)		(3,346)		(5,241)		(7,545)
Adjusted operating income		110,320		99,587		282,263		268,421
Cost recognized upon sale of acquired inventory		(181)		(186)		(554)		(550)
Amortization of intangibles		(18,836)		(19,287)		(57,136)		(58,908)
Acquisition related expenses and other		(4,978)		(3,286)		(8,497)		(2,173)
Certain litigation charges		(38,927)		—		(40,606)		—
Stock-based compensation, inclusive of employer taxes		(11,629)		(8,358)		(37,504)		(32,810)
Restructuring and restructuring-related costs		(716)		(1,550)		(15,027)		(7,157)
(Impairment) recovery of assets held-for-sale		3,655		—		3,655		(6,038)
Impact of business held-for-sale¹⁾		—		78		(479)		78
Operating income	$	38,708	$	66,998	$	126,115	$	160,863

¹⁾Since December 31, 2023, the Company has a business that has met the held-for-sale criteria.

BIO-TECHNE CORPORATION
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA
(In thousands)
(Unaudited)


	QUARTER				NINE MONTHS
	ENDED				ENDED
	3/31/2025		3/31/2024		3/31/2025		3/31/2024
Net earnings	$	22,588	$	49,059	$	91,078	$	127,517
Net interest expense (income)		981		3,293		3,031		10,808
Depreciation and amortization		27,571		27,310		82,792		83,654
Income taxes		15,686		12,025		30,244		16,511
EBITDA		66,826		91,687		207,145		238,490
Costs recognized upon sale of acquired inventory		181		186		554		550
Amortization of Wilson Wolf intangible assets and acquired inventory		2,491		4,208		7,471		12,623
Acquisition related expenses and other		5,109		3,432		8,923		2,609
Certain litigation charges		38,927		—		40,606		—
Stock-based compensation, inclusive of employer taxes		11,629		8,358		37,504		32,810
Restructuring and restructuring-related costs		716		1,550		15,027		7,157
Investment (gain) loss and other non-operating		—		—		—		(283)
Impairment (recovery) of assets held-for-sale		(3,655)		—		(3,655)		6,038
Impact of business held-for-sale¹⁾		—		(78)		479		(78)
Adjusted EBITDA	$	122,224	$	109,343	$	314,054	$	299,916

¹⁾Since December 31, 2023, the Company has a business that has met the held-for-sale criteria.

BIO-TECHNE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)


	NINE MONTHS
	ENDED
	3/31/2025		3/31/2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings	$	91,078	$	127,517
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization		82,792		83,654
Costs recognized on sale of acquired inventory		554		550
Deferred income taxes		(18,825)		(29,896)
Stock-based compensation expense		36,283		30,979
Fair value adjustment to available-for-sale investments		—		(283)
(Gain) Loss on equity method investment		169		6,042
Asset impairment restructuring		9,961		—
Fair value adjustment to contingent consideration payable		—		(3,500)
Impairment (recovery) of assets held-for-sale		(3,655)		6,038
Other operating activities		(9,002)		2,384
Net cash provided by (used in) operating activities		189,355		223,485
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of available-for-sale investments		1,085		23,759
Purchases of available-for-sale investments		—		(5,526)
Additions to property and equipment		(26,116)		(44,897)
Acquisitions, net of cash acquired		—		(169,707)
Distributions from (Investments in) Wilson Wolf		2,653		2,149
Investment in Spear Bio		(15,000)		—
Proceeds from sale of assets held-for-sale		1,789		—
Net cash provided by (used in) investing activities		(35,589)		(194,222)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends		(38,004)		(37,792)
Proceeds from stock option exercises		45,513		38,001
Long-term debt activity, net		11,000		39,000
Re-purchases of common stock		(175,674)		(80,042)
Taxes paid on RSUs and net share settlements		(6,288)		(21,470)
Net cash provided by (used in) financing activities		(163,453)		(62,303)
Effect of exchange rate changes on cash and cash equivalents		(1,434)		(7,616)
Net increase (decrease) in cash and cash equivalents		(11,121)		(40,656)
Cash and cash equivalents at beginning of period		151,791		180,571
Cash and cash equivalents at end of period	$	140,670	$	139,915

View original content to download multimedia:https://www.prnewswire.com/news-releases/bio-techne-releases-third-quarter-fiscal-2025-results-302448086.html

SOURCE Bio-Techne Corporation

May 7, 2025 6:35 am

Kennametal Announces Fiscal 2025 Third Quarter Results

PR Newswire

Earnings per diluted share (EPS) of $0.41 and adjusted EPS of $0.47, compared to $0.24 and $0.30, respectively, in the prior year quarter
Returned approximately $40 million to shareholders; $25 million in share repurchases and $15 million in dividends
Company provides updated annual Outlook

PITTSBURGH
, May 7, 2025 /PRNewswire/ — Kennametal Inc. (NYSE: KMT) (the “Company”) today reported results for its fiscal 2025 third quarter ended March 31, 2025, with sales of $486 million compared to $516 million in the prior year quarter, and earnings per diluted share (EPS) of $0.41 compared to $0.24 in the prior year quarter. The current quarter pre-tax results include a benefit of approximately $10 million from an advanced manufacturing production credit under the Inflation Reduction Act. Adjusted EPS was $0.47 in the current quarter compared to $0.30 in the prior year quarter.

“During the quarter we demonstrated continued progress on our growth and cost initiatives despite weak market conditions, primarily in EMEA and the Americas,” said Sanjay Chowbey, President and CEO. “The market headwinds resulted in sales slightly below our midpoint while adjusted EPS exceeded the upper end of our outlook primarily due to an advanced manufacturing production credit.”

Chowbey continued: “Like many companies, the recent uncertainty regarding tariff policies has affected Kennametal, however we intend to mitigate the direct effect of tariffs on our business and will pursue new opportunities to take share.”

Fiscal 2025 Third Quarter Key Developments

Sales of $486 million decreased 6 percent from $516 million in the prior year quarter, reflecting an organic sales decline of 3 percent and an unfavorable currency exchange effect of 3 percent.

During the quarter, the Company achieved incremental year-over-year restructuring savings of approximately $6 million. In January 2025, we announced actions to support the long-term competitiveness of the Company and to mitigate softer market conditions. These actions are currently expected to deliver annualized run rate pre-tax savings of approximately $15 million by the end of fiscal 2025. The Company expects to incur pre-tax charges of approximately $25 million in connection with the execution of these actions, of which $6 million was recognized during the quarter.

Operating income was $44 million, or 9.1 percent margin, compared to $35 million, or 6.8 percent margin, in the prior year quarter. The increase in operating income was primarily due to an advanced manufacturing production credit under the Inflation Reduction Act of approximately $10 million within the Infrastructure segment, lower raw material costs, pricing, and incremental year-over-year restructuring savings of approximately $6 million. These factors were partially offset by lower sales and production volumes, higher wages and general inflation and an unfavorable currency exchange effect of approximately $3 million. Adjusted operating income was $50 million, or 10.3 percent margin, in the current quarter, compared to $42 million, or 8.1 percent margin, in the prior year quarter.

The reported effective tax rate (ETR) for the quarter was 23.6 percent compared to 27.4 percent in the prior year quarter. The decrease in the ETR year-over-year was primarily driven by a benefit from the advanced manufacturing production credit under the Inflation Reduction Act and geographical mix. The adjusted ETR was 22.8 percent in the current quarter, compared to 26.5 percent in the prior year quarter.

Year-to-date net cash flow from operating activities was $130 million compared to $163 million in the prior year period. The change in net cash flow from operating activities was driven primarily by working capital changes. Year-to-date free operating cash flow (FOCF) was $63 million compared to $84 million in the prior year period. The decrease in FOCF was driven primarily by working capital changes, partially offset by lower net capital expenditures.

The Company paid $15 million in cash dividends to Kennametal shareholders during the quarter. The Company has a long history of consistently paying dividends to shareholders since its listing on the New York Stock Exchange in 1967.

During the quarter, the Company repurchased 1.1 million shares of Kennametal common stock for $25 million under its share repurchase program. Inception-to-date the Company has repurchased 2.3 million shares of common stock for $55 million under the $200 million three-year program.

Outlook

The Company’s expectations for the full fiscal year 2025 are as follows:

Annual Outlook:

Sales now expected to be $1.970 – $1.990 billion
Adjusted EPS is now expected to be $1.30 – $1.45
Pricing actions expected to cover raw material costs, wages and general inflation
Interest expense is expected to be approximately $27 million
Adjusted ETR is now expected to be approximately 25 percent
Free operating cash flow of greater than 125 percent of adjusted net income
Primary working capital as a percent of sales is now expected to be approximately 32 percent by fiscal year-end
Capital spending now expected to be approximately $90 million

The Company will provide more details regarding its Outlook, including assumptions on tariffs, during its quarterly earnings conference call.

Segment Results

Metal Cutting sales of $304 million decreased 7 percent from $327 million in the prior year quarter, reflecting an organic sales decline of 4 percent and an unfavorable currency exchange effect of 3 percent. Operating income was $25 million, or 8.2 percent margin, compared to $31 million, or 9.4 percent margin, in the prior year quarter. The decrease in operating income was primarily due to lower sales and production volumes, an unfavorable currency exchange effect of approximately $3 million and higher wages and general inflation. These factors were partially offset by pricing, incremental year-over-year restructuring savings of approximately $4 million and lower raw material costs. Adjusted operating income was $29 million, or 9.6 percent margin, in the current quarter, compared to $35 million, or 10.8 percent margin, in the prior year quarter.

Infrastructure sales of $182 million decreased 4 percent from $189 million in the prior year quarter, reflecting an organic sales decline of 2 percent and an unfavorable currency exchange effect of 2 percent. Operating income was $19 million, or 10.7 percent margin, compared to $5 million, or 2.7 percent margin, in the prior year quarter. The increase in operating income was primarily due to an advanced manufacturing production credit under the Inflation Reduction Act of approximately $10 million, the favorable timing of pricing compared to raw material costs and incremental year-over-year restructuring savings of approximately $2 million. These factors were partially offset by lower sales and production volumes. Adjusted operating income was $21 million, or 11.5 percent margin, in the current quarter, compared to $7 million, or 3.8 percent margin, in the prior year quarter.

Dividend Declared

Kennametal announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share. The dividend is payable on May 27, 2025 to shareholders of record as of the close of business on May 13, 2025.

The Company will host a conference call to discuss its third quarter fiscal 2025 results on Wednesday, May 7, 2025 at 9:30 a.m. Eastern Time. The conference call will be broadcast via real-time audio on Kennametal’s investor relations website at https://investors.kennametal.com/ – click “Event” (located in the blue Quarterly Earnings block).

This earnings release contains non-GAAP financial measures. Reconciliations and descriptions of all non-GAAP financial measures are set forth in the tables that follow.

Certain statements in this release may be forward-looking in nature, or “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are statements that do not relate strictly to historical or current facts. For example, statements about Kennametal’s outlook for sales, interest expense, adjusted EPS, FOCF, primary working capital, capital expenditures and adjusted effective tax rate for the full year of fiscal 2025 and our expectations regarding future growth and financial performance are forward-looking statements. Any forward-looking statements are based on current knowledge, expectations and estimates that involve inherent risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, our actual results could vary materially from our current expectations. There are a number of factors that could cause our actual results to differ from those indicated in the forward-looking statements. They include: uncertainties related to changes in macroeconomic and/or global conditions, including as a result of increased inflation, tariffs, and Russia’s invasion of Ukraine and the resulting sanctions on Russia; the conflict in the Middle East; other economic recession; our ability to achieve all anticipated benefits of restructuring, simplification and modernization initiatives; Commercial Excellence growth initiatives, Operational Excellence initiatives, our foreign operations and international markets, such as currency exchange rates, different regulatory environments, trade barriers, exchange controls, and social and political instability, including the conflicts in Ukraine and the Middle East; changes in the regulatory environment in which we operate, including environmental, health and safety regulations; potential for future goodwill and other intangible asset impairment charges; our ability to protect and defend our intellectual property; continuity of information technology infrastructure; competition; our ability to retain our management and employees; demands on management resources; availability and cost of the raw materials we use to manufacture our products; product liability claims; integrating acquisitions and achieving the expected savings and synergies; global or regional catastrophic events; demand for and market acceptance of our products; business divestitures; energy costs; commodity prices; labor relations; and implementation of environmental remediation matters. Many of these risks and other risks are more fully described in Kennametal’s latest annual report on Form 10-K and its other periodic filings with the Securities and Exchange Commission. We can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments.

About Kennametal

With over 85 years as an industrial technology leader, Kennametal Inc. delivers productivity to customers through materials science, tooling and wear-resistant solutions. Customers across aerospace and defense, earthworks, energy, general engineering and transportation turn to Kennametal to help them manufacture with precision and efficiency. Every day approximately 8,400 employees are helping customers in nearly 100 countries stay competitive. Kennametal generated $2 billion in revenues in fiscal 2024. Learn more at www.kennametal.com. Follow @Kennametal: Instagram, Facebook, LinkedIn and YouTube.

FINANCIAL HIGHLIGHTS

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three Months Ended March 31,		Nine Months Ended March 31,
(in thousands, except per share amounts)	2025	2024	2025	2024
Sales	$ 486,399	$ 515,794	$ 1,450,398	$ 1,503,591
Cost of goods sold	330,034	362,532	997,993	1,047,834
Gross profit	156,365	153,262	452,405	455,757
Operating expense	104,013	108,684	324,975	327,674
Restructuring and other charges, net	5,589	6,465	7,535	10,585
Amortization of intangibles	2,703	2,886	8,142	8,674
Operating income	44,060	35,227	111,753	108,824
Interest expense	6,213	6,777	18,705	20,225
Other income, net	(5,454)	(76)	(8,589)	(674)
Income before income taxes	43,301	28,526	101,637	89,273
Provision for income taxes	10,219	7,816	26,052	13,866
Net income	33,082	20,710	75,585	75,407
Less: Net income attributable to noncontrolling interests	1,600	1,734	4,052	3,266
Net income attributable to Kennametal	$ 31,482	$ 18,976	$ 71,533	$ 72,141
PER SHARE DATA ATTRIBUTABLE TO KENNAMETAL SHAREHOLDERS
Basic earnings per share	$ 0.41	$ 0.24	$ 0.92	$ 0.91
Diluted earnings per share	$ 0.41	$ 0.24	$ 0.91	$ 0.90
Basic weighted average shares outstanding	77,037	79,229	77,614	79,655
Diluted weighted average shares outstanding	77,651	79,849	78,208	80,197

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands)	March 31, 2025	June 30, 2024
ASSETS
Cash and cash equivalents	$ 97,467	$ 127,971
Accounts receivable, net	290,944	302,810
Inventories	555,989	514,632
Other current assets	68,960	57,179
Total current assets	1,013,360	1,002,592
Property, plant and equipment, net	911,867	938,063
Goodwill and other intangible assets, net	346,205	352,988
Other assets	219,071	210,115
Total assets	$ 2,490,503	$ 2,503,758
LIABILITIES
Revolving and other lines of credit and notes payable	$ 12,561	$ 1,377
Accounts payable	192,923	191,541
Other current liabilities	210,142	223,043
Total current liabilities	415,626	415,961
Long-term debt	596,586	595,980
Other liabilities	199,375	203,218
Total liabilities	1,211,587	1,215,159
KENNAMETAL SHAREHOLDERS’ EQUITY	1,236,868	1,249,875
NONCONTROLLING INTERESTS	42,048	38,724
Total liabilities and equity	$ 2,490,503	$ 2,503,758

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)

	Nine Months Ended March 31,
(in thousands)	2025	2024
OPERATING ACTIVITIES
Net income	$ 75,585	$ 75,407
Adjustments to reconcile to cash from operations:
Depreciation	93,279	91,056
Amortization	8,142	8,674
Stock-based compensation expense	18,329	20,651
Restructuring and other charges, net	7,535	10,585
Deferred income taxes	(1,917)	(7,661)
Gain on insurance recoveries	(7,500)	—
Other	817	13,511
Changes in certain assets and liabilities:
Accounts receivable	10,516	3,875
Inventories	(41,269)	7,044
Accounts payable and accrued liabilities	(14,140)	(26,014)
Accrued income taxes	(11,668)	(17,459)
Accrued pension and postretirement benefits	(5,023)	(8,529)
Other	(2,956)	(7,680)
Net cash flow provided by operating activities	129,730	163,460
INVESTING ACTIVITIES
Purchases of property, plant and equipment	(67,506)	(84,240)
Disposals of property, plant and equipment	460	5,270
Business acquisitions	—	(4,010)
Proceeds from insurance recoveries	7,193	—
Other	(202)	(3,131)
Net cash flow used in investing activities	(60,055)	(86,111)
FINANCING ACTIVITIES
Net increase in notes payable	944	4,132
Net increase in revolving and other lines of credit	10,200	7,500
Purchase of capital stock	(55,081)	(43,786)
The effect of employee benefit and stock plans and dividend reinvestment	(6,570)	(7,949)
Cash dividends paid to Shareholders	(46,604)	(47,697)
Other	(915)	(859)
Net cash flow used in financing activities	(98,026)	(88,659)
Effect of exchange rate changes on cash and cash equivalents	(2,153)	(2,592)
CASH AND CASH EQUIVALENTS
Net decrease in cash and cash equivalents	(30,504)	(13,902)
Cash and cash equivalents, beginning of period	127,971	106,021
Cash and cash equivalents, end of period	$ 97,467	$ 92,119

SEGMENT DATA (UNAUDITED)	Three Months Ended March 31,		Nine Months Ended March 31,

(in thousands)	2025	2024	2025	2024
Sales:
Metal Cutting	$ 304,349	$ 326,561	$ 899,035	$ 946,237
Infrastructure	182,050	189,233	551,363	557,354
Total sales	$ 486,399	$ 515,794	$ 1,450,398	$ 1,503,591
Sales By Geographic Region:
Americas	$ 240,361	$ 252,921	$ 713,341	$ 738,566
EMEA	151,262	164,238	442,689	465,874
Asia Pacific	94,776	98,635	294,368	299,151
Total sales	$ 486,399	$ 515,794	$ 1,450,398	$ 1,503,591
Operating income:
Metal Cutting	$ 24,900	$ 30,809	$ 65,308	$ 88,453
Infrastructure	19,423	5,140	47,770	22,020
Corporate ⁽¹⁾	(263)	(722)	(1,325)	(1,649)
Total operating income	$ 44,060	$ 35,227	$ 111,753	$ 108,824

⁽¹⁾ Represents unallocated corporate expenses.

NON-GAAP RECONCILIATIONS (UNAUDITED)

In addition to reported results under generally accepted accounting principles in the United States of America (GAAP), the following financial highlight tables include, where appropriate, a reconciliation of adjusted results including: operating income and margin; ETR; net income attributable to Kennametal; diluted EPS; Metal Cutting operating income and margin; Infrastructure operating income and margin; FOCF; and consolidated and segment organic sales growth (all of which are non-GAAP financial measures), to the most directly comparable GAAP financial measures. Adjustments for the three months ended March 31, 2025 include restructuring and related charges and differences in projected annual tax rates. Adjustments for the three months ended March 31, 2024 include restructuring and related charges and differences in projected annual tax rates. For those adjustments that are presented ‘net of tax’, the tax effect of the adjustment can be derived by calculating the difference between the pre-tax and the post-tax adjustments presented. The tax effect on adjustments is calculated by preparing an overall tax calculation including the adjustments and then a tax calculation excluding the adjustments. The difference between these calculations results in the tax impact of the adjustments.

Management believes that presentation of these non-GAAP financial measures provides useful information about the results of operations of the Company for the current and past periods. Management believes that investors should have available the same information that management uses to assess operating performance, determine compensation and assess the capital structure of the Company. These non-GAAP financial measures should not be considered in isolation or as a substitute for the most comparable GAAP financial measures. Investors are cautioned that non-GAAP financial measures used by management may not be comparable to non-GAAP financial measures used by other companies. Reconciliations and descriptions of all non-GAAP financial measures are set forth in the disclosures below.

Reconciliations to the most directly comparable GAAP financial measures for the following forward-looking non-GAAP financial measures for the full fiscal year of 2025 have not been provided, including but not limited to: FOCF, adjusted operating income, adjusted net income, adjusted EPS, adjusted ETR and primary working capital. The most comparable GAAP financial measures are net cash flow from operating activities, operating income, net income attributable to Kennametal, EPS, ETR and working capital (defined as current assets less current liabilities), respectively. Primary working capital is defined as accounts receivable, net plus inventories, net minus accounts payable. Because the non-GAAP financial measures on a forward-looking basis are subject to uncertainty and variability as they are dependent on many factors – including, but not limited to, the effect of foreign currency exchange fluctuations, impacts from potential acquisitions or divestitures, gains or losses on the potential sale of businesses or other assets, restructuring costs, asset impairment charges, gains or losses from early extinguishment of debt, the tax impact of the items above and the impact of tax law changes or other tax matters – reconciliations to the most directly comparable forward-looking GAAP financial measures are not available without unreasonable effort.

THREE MONTHS ENDED MARCH 31, 2025 (UNAUDITED)
(in thousands, except percents and per share data)	Sales	Operating income	ETR	Net income⁽²⁾	Diluted EPS
Reported results	$ 486,399	$ 44,060	23.6 %	$ 31,482	$ 0.41
Reported operating margin		9.1 %
Restructuring and related charges	—	5,840	19.4	4,709	0.06
Differences in projected annual tax rates	—	—	(20.2)	146	—
Adjusted results	$ 486,399	$ 49,900	22.8 %	$ 36,337	$ 0.47
Adjusted operating margin		10.3 %

⁽²⁾Attributable to Kennametal.

THREE MONTHS ENDED MARCH 31, 2025 (UNAUDITED)
	Metal Cutting		Infrastructure
(in thousands, except percents)	Sales	Operating income	Sales	Operating income
Reported results	$ 304,349	$ 24,900	$ 182,050	$ 19,423
Reported operating margin		8.2 %		10.7 %
Restructuring and related charges	—	4,320	—	1,520
Adjusted results	$ 304,349	$ 29,220	$ 182,050	$ 20,943
Adjusted operating margin		9.6 %		11.5 %

THREE MONTHS ENDED MARCH 31, 2024 (UNAUDITED)
(in thousands, except percents and per share data)	Sales	Operating income	ETR	Net income⁽²⁾	Diluted EPS
Reported results	$ 515,794	$ 35,227	27.4 %	$ 18,976	$ 0.24
Reported operating margin		6.8 %
Restructuring and related charges	—	6,465	20.4	5,098	0.06
Differences in projected annual tax rates	—	—	(21.3)	(141)	—
Adjusted results	$ 515,794	$ 41,692	26.5 %	$ 23,933	$ 0.30
Adjusted operating margin		8.1 %

⁽²⁾Attributable to Kennametal.

THREE MONTHS ENDED MARCH 31, 2024 (UNAUDITED)
	Metal Cutting		Infrastructure
(in thousands, except percents)	Sales	Operating income	Sales	Operating income
Reported results	$ 326,561	$ 30,809	$ 189,233	$ 5,140
Reported operating margin		9.4 %		2.7 %
Restructuring and related charges	—	4,493	—	1,972
Adjusted results	$ 326,561	$ 35,302	$ 189,233	$ 7,112
Adjusted operating margin		10.8 %		3.8 %

Free Operating Cash Flow (FOCF)

FOCF is a non-GAAP financial measure and is defined by the Company as net cash flow provided by operating activities (which is the most directly comparable GAAP financial measure) less capital expenditures plus proceeds from disposals of fixed assets. Management considers FOCF to be an important indicator of the Company’s cash generating capability because it better represents cash generated from operations that can be used for dividends, debt repayment, strategic initiatives (such as acquisitions) and other investing and financing activities.

FREE OPERATING CASH FLOW (UNAUDITED)	Nine Months Ended March 31,
(in thousands)	2025	2024
Net cash flow provided by operating activities	$ 129,730	$ 163,460
Purchases of property, plant and equipment	(67,506)	(84,240)
Disposals of property, plant and equipment	460	5,270
Free operating cash flow	$ 62,684	$ 84,490

Organic Sales Growth (Decline)

Organic sales growth (decline) is a non-GAAP financial measure of sales growth (decline) (which is the most directly comparable GAAP measure) excluding the effects of acquisitions, divestitures, business days and foreign currency exchange from year-over-year comparisons. Management believes this measure provides investors with a supplemental understanding of underlying sales trends by providing sales growth on a consistent basis. Management reports organic sales growth (decline) at the consolidated and segment levels.

ORGANIC SALES DECLINE (UNAUDITED)
Three Months Ended March 31, 2025	Metal Cutting	Infrastructure	Total
Organic sales decline	(4) %	(2) %	(3) %
Foreign currency exchange effect ⁽³⁾	(3)	(2)	(3)
Business days effect ⁽⁴⁾	—	—	—
Sales decline	(7) %	(4) %	(6) %

⁽³⁾ Foreign currency exchange effect is calculated by dividing the difference between current period sales and current period sales at prior period foreign exchange rates by prior period sales.

⁽⁴⁾ Business days effect is calculated by dividing the year-over-year change in weighted average working days (based on mix of sales by country) by prior period weighted average working days.

View original content:https://www.prnewswire.com/news-releases/kennametal-announces-fiscal-2025-third-quarter-results-302447873.html

SOURCE Kennametal Inc.

May 7, 2025 6:35 am

Bandwidth Announces First Quarter 2025 Financial Results

PR Newswire

RALEIGH, N.C.
, May 7, 2025 /PRNewswire/ — Bandwidth Inc. (NASDAQ: BAND), a leading global enterprise cloud communications company, today announced its financial results for the first quarter ended March 31, 2025. Visit the Bandwidth investor relations website to view the results.

Bandwidth will offer a live webcast of the conference call to discuss the results today at 8:00 AM Eastern Time. Participants may access the live webcast on the investor relations website at https://investors.bandwidth.com, where a replay will also be available shortly following the completion of the event.

Conference call details:
Date: Wednesday, May 7, 2025
Time: 8:00 a.m. Eastern Time
Dial-in number (domestic): 844-481-2707
Dial-in number (international): 412-317-0663

Replay information:
Following the completion of the call through Wednesday, May 14, 2025, a replay will be available by dialing (877) 344-7529 for the U.S. or (412) 317-0088 for callers outside the U.S., and entering passcode 4958342.

About Bandwidth Inc.
Bandwidth (NASDAQ: BAND) is a global cloud communications software company that helps enterprises deliver exceptional experiences through voice calling, text messaging and emergency services. Our solutions and our Communications Cloud, covering 65+ countries and over 90 percent of global GDP, are trusted by all the leaders in unified communications and cloud contact centers–including Amazon Web Services (AWS), Cisco, Google, Microsoft, RingCentral, Zoom, Genesys and Five9–as well as Global 2000 enterprises and SaaS builders like Docusign, Uber and Yosi Health. As a founder of the cloud communications revolution, we are the first and only global Communications Platform-as-a-Service (CPaaS) to offer a unique combination of composable APIs, AI capabilities, owner-operated network and broad regulatory experience. Our award-winning support teams help businesses around the world solve complex communications challenges every day. For more information, visit Bandwidth.com.

View original content:https://www.prnewswire.com/news-releases/bandwidth-announces-first-quarter-2025-financial-results-302447894.html

SOURCE Bandwidth Inc.

May 7, 2025 6:35 am

Akamai and FPT Partner to Help Customers Build and Support Cloud-Native Applications

PR Newswire

New strategic partnership combines FPT’s consulting and systems integration expertise with compute capabilities of globally distributed Akamai Cloud

CAMBRIDGE, Mass.
, May 7, 2025 /PRNewswire/ — Akamai Technologies (NASDAQ: AKAM), the cybersecurity and cloud computing company that powers and protects business online, today announced a new partnership with global IT services leader FPT. As a newly appointed global systems integrator in the Akamai Partner Program, FPT will collaborate closely with Akamai to help customers build, deploy, and optimize distributed cloud applications on Akamai Cloud.

“We are thrilled to join the Akamai Partner Program,” said Phuong Dang, FPT Software Senior Executive Vice President and FPT Software Americas’ Chief Executive Officer, FPT Corporation. “This collaboration enables us to combine FPT’s deep knowledge and experience in cloud migration, AI, and automation with Akamai’s powerful platform to deliver enhanced value to both FPT and Akamai customers. Together, we aim to empower businesses to run modern, cloud-native applications on a platform built for performance and scale—regardless of the customer’s stage in their cloud journey.”

The collaboration between Akamai and FPT aims to empower organizations to fully leverage cloud solutions designed to operate at scale, closer to users and devices. By combining FPT’s vast workforce and proven capabilities in cloud consulting, DevOps, and SecOps with the robust performance and cost efficiencies of Akamai’s compute platform, the partnership supports enterprises in optimizing multi-cloud and distributed environments.

“FPT brings the kind of hands-on expertise our customers need—whether it’s building cloud-native applications, managing multi-cloud environments, or unlocking AI inference across the globe,” said Paul Joseph, Executive Vice President, Global Sales and Services, Akamai. “They’ve already earned the trust of customers across many of the industries we serve, and now they’re enabling those same customers to use Akamai Cloud to drive smarter, faster, more efficient computing around the world.”

At the 2025 NAB Show in Las Vegas, FPT and Akamai jointly demonstrated how AI can unlock new value from media archives by transforming them into monetizable assets. In a sports media use case, the showcase featured AI-driven indexing running on Akamai Cloud, capable of analyzing and tagging archived content with precision. By automatically detecting players, actions, and key moments, the system generates rich metadata that enhances content discoverability and viewer engagement. Sports entertainment operators, streaming services, and news organizations can offer fans near-instantaneous access to highlights through ultra-fast search and retrieval functions. The capabilities can be applied across a host of use cases and industries, showing how organizations can create new revenue streams using archived media.

FPT has a strong global footprint, operating in 30 countries, including 16 locations across the Americas. Since entering the region in 2008, FPT has grown its presence significantly, now employing more than 1,000 professionals. In 2024, the company’s global IT services achieved a 27.4% year-on-year revenue increase, contributing 79% of FPT’s total technology revenue and 91% of its pre-tax profit. The Americas played a key role in this growth, generating more than 24% of global IT services revenue and securing a landmark USD 225 million deal. Building on this momentum, FPT reported robust first-quarter results in 2025, with revenue increasing by 13.9% and profit before tax up 19.4% year-on-year. The technology sector continues to serve as a key growth driver, achieving a 15.3% year-on-year increase, underpinned by a 17% rise in revenue from global IT services.

To learn more about Akamai’s partner ecosystem or to join the leading technology companies that partner with Akamai, visit the Akamai Technology Partner Program page.

Additional information about Akamai’s cloud computing services is available at akamai.com.

About FPT
FPT Corporation (FPT) is a globally leading technology and IT services provider headquartered in Vietnam and operates in three core sectors: Technology, Telecommunications, and Education. Over more than three decades, FPT has consistently delivered impactful solutions to millions of individuals and tens of thousands of organizations worldwide. Committed to elevating Vietnam’s position on the global tech map and delivering world-class solutions for global enterprises, the Corporation focuses on five strategic areas: Artificial Intelligence, Automotive, Semiconductor, Digital Transformation, and Green Transformation. In 2024, FPT reported a total revenue of USD 2.47 billion and a workforce of over 54,000 employees across its core businesses. For more information about FPT’s global IT services, please visit https://fptsoftware.com/.

About Akamai
Akamai is the cybersecurity and cloud computing company that powers and protects business online. Our market-leading security solutions, superior threat intelligence, and global operations team provide defense in depth to safeguard enterprise data and applications everywhere. Akamai’s full-stack cloud computing solutions deliver performance and affordability on the world’s most distributed platform. Global enterprises trust Akamai to provide the industry-leading reliability, scale, and expertise they need to grow their business with confidence. Learn more at akamai.com and akamai.com/blog, or follow Akamai Technologies on X and LinkedIn.

Contacts
Akamai Media Relations
[email protected]

Akamai Investor Relations
[email protected]

Mai Duong (Ms.)
FPT Corporation
FPT Software PR Manager
[email protected]

View original content to download multimedia:https://www.prnewswire.com/news-releases/akamai-and-fpt-partner-to-help-customers-build-and-support-cloud-native-applications-302448269.html

SOURCE Akamai Technologies, Inc.

May 7, 2025 6:35 am

Valens Semiconductor Reports First Quarter 2025 Results

PR Newswire

Key Financial Highlights:

Q1 revenues: $16.8 million, exceeding the top end of our guidance.
Q1 gross margin: 62.9% GAAP; 66.7% non-GAAP.
Cash, cash equivalents and short-term deposits: $112.5 million.

HOD HASHARON, Israel, May 7, 2025 /PRNewswire/ — Valens Semiconductor Ltd. (NYSE: VLN), a leader in high-performance connectivity, today reported financial results for the first quarter ended March 31, 2025.

“Valens had a positive start to 2025,” said Gideon Ben-Zvi, CEO of Valens Semiconductor. “In ProAV, we’re beginning to emerge from the bottom of the sales cycle, and we’re seeing increasing interest in our solutions from our customers. In the high-growth-potential machine vision market, we showcased our chips at major trade conferences while announcing partnerships with a variety of leading companies in this space. In automotive, the interest in the MIPI A-PHY standard continued to build; after announcing our partnership with Mobileye on our three design wins, we held successful interoperability testing with seven A-PHY silicon vendors. We’re eager to use this momentum to spur us to greater heights in Q2.”

“We’ve rounded out the first quarter of 2025 having, once again, exceeded the top end of our revenue guidance,” said Guy Nathanzon, CFO of Valens Semiconductor. “We believe we are now well positioned to capitalize on the significant business opportunities that lie ahead, across the variety of industries we serve. We have also recently announced another share repurchase program of up to $15 million, reflecting the confidence we have in the company’s long-term growth. Regarding the new tariffs – while it looks like semiconductors are currently exempt, it is still too early to estimate the direct impact on our operations and the impact on our customers’ end-market demand. We are monitoring developments closely and will communicate once we have better visibility.”

Q1 2025 Financial Highlights:

Q1 revenues reached $16.8 million, exceeding our guidance of $16.3–$16.6 million, compared to $16.7 million in Q4 2024 and $11.6 million in Q1 2024.
– Q1 Cross-Industry Business (“CIB”) revenues, accounted for approximately 70% of total revenues at $11.7 million compared to $11.7 million dollars in Q4 2024 and $7.2 million in Q1 2024.
– Q1 Automotive revenues accounted for approximately 30% of total revenues at $5.1 million, compared to $5.0 million dollars in Q4 2024 and $4.4 million in Q1 2024.
Q1 GAAP gross margin was 62.9% (non-GAAP gross margin was 66.7%), above the guidance. This is compared to a GAAP gross margin of 60.4% for Q4 2024 and 59.0% for Q1 2024 (non-GAAP gross margin of 64.5% in Q4 2024 and 62.0% in Q1 2024). On a segment basis, Q1 gross margin from the CIB was 69.1% and gross margin from Automotive was 48.4%. This compares to a Q4 2024 gross margin of 64.7% and 50.5%, respectively, and a Q1 2024 gross margin of 77.2% and 29.1%, respectively. The increase in Q1 automotive gross margin compared to Q1 2024 was due to an optimization of our product cost. The increase in gross margin of the CIB compared to Q4 2024 was due to an inventory adjustment in Q4 2024.
Q1 GAAP net loss amounted to $(8.3) million, compared to a net loss of $(7.3) million dollars in Q4 2024 and a net loss of $(10.0) million dollars in Q1 2024.
Q1 adjusted EBITDA was a loss of $(4.3) million, within the guidance range of $(4.5)–$(4.2) million EBITDA loss. This compares to an adjusted EBITDA loss of $(3.7) million dollars in Q4 2024 and an adjusted EBITDA loss of $(7.1) million dollars in Q1 2024.
Cash balance as of March 31, 2025, was $112.5 million. This compares to a cash balance of $131.0 million as of December 31, 2024. During the first quarter of 2025 the company used $9.6 million for the share repurchase programs, announced in December 2024 and in February 2025.

Q1 2025 Business Highlights:

Received endorsement from Sennheiser for our extension technology to use with the company’s TeamConnect Bar solutions
Partnered with RGo Robotics and CHERRY Embedded Solutions to design optimized AI robotic systems
In April, announced that Valens’ VA7000 MIPI A-PHY-compliant chipsets will form the in-car, sensor to compute connectivity infrastructure for Mobileye EyeQ™6 High automated and autonomous production programs underway with a group of global automotive brands
Successfully completed product interoperability testing with seven MIPI A-PHY silicon vendors to advance the standard ecosystem in China and globally
Announced a new share repurchase program of $15 million, which was launched on March 17, 2025. During the first quarter of 2025 the company completed the first repurchase program of $10 million announced in December 2024

Financial Outlook for Q2 2025

For Q2 2025, Valens Semiconductor expects revenues to range between $16.5 million and $16.8 million, gross margin to range between 63.0% and 64.0%, and adjusted EBITDA loss to range between $(4.9) million and $(4.4) million.

Disclaimer: Valens Semiconductor does not provide GAAP net profit (loss) guidance as certain elements of net profit (loss), including share-based compensation expenses and warrant valuations, are not predictable due to the high variability and difficulty of making accurate forecasts. Adjusted EBITDA is a non-GAAP measure. See the tables below for additional information regarding this and other non-GAAP metrics used in this release.

Conference Call Information

Valens Semiconductor will host a conference call today, Wednesday, May 7, 2025, at 8:30 a.m. Eastern Time (ET) to discuss its first quarter 2025 financial results and business outlook. To access this call, dial (at least 10 minutes before the scheduled time) +1 (888) 281-1167 (U.S.), 0 (808) 101-2717 (UK), 03 918 0610 (Israel) or +972 3 918 0610 (all other locations). A live webcast of the conference call will be available via the investor relations section of Valens Semiconductor’s website at Valens – Financials – Quarterly Results. The live webcast can also be accessed by clicking here. A replay of the conference call will be available on Valens Semiconductor’s website shortly after the call concludes.

NYSE Rule 203.01 Annual Financial Report Announcement

Pursuant to Rule 203.01 of the New York Stock Exchange Manual, Valens Semiconductor Ltd. hereby announces to holders of its ordinary shares that its Annual Report on Form 20-F for 2024 (including its full year 2024 audited financial statements), filed with the U.S. Securities and Exchange Commission on February 26, 2025, is available in the investor relations section of its website at https://investors.valens.com/financials/secfilings/default.aspx. While the company encourages the sustainable approach of downloading and reading the report online, hard copies of the 2024 Annual Report will be provided free of charge, upon request, as follows: Valens Semiconductor Ltd., 8 Hanagar St. POB 7152, Hod Hasharon 4501309, Israel, or by emailing: [email protected].

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding our anticipated future results, including financial results, our five-year plan, currency exchange rates, and contract wins, and future economic and market conditions. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Valens Semiconductor’s (“Valens”) management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Valens Semiconductor. These forward-looking statements are subject to a number of risks and uncertainties, including the cyclicality of the semiconductor industry; the effect of inflation and a rising interest rate environment on our customers and industry; the ability of our customers to absorb inventory; competition in the semiconductor industry, and the failure to introduce new technologies and products in a timely manner to compete successfully against competitors; if Valens fails to adjust its supply chain volume due to changing market conditions or fails to estimate its customers’ demand; disruptions in relationships with any one of Valens’ key customers; any difficulty selling Valens’ products if customers do not design its products into their product offerings; Valens’ dependence on winning selection processes; even if Valens succeeds in winning selection processes for its products, Valens may not generate timely or sufficient net sales or margins from those wins; sustained yield problems or other delays or quality events in the manufacturing process of products; our ability to effectively manage, invest in, grow, and retain our sales force, research and development capabilities, marketing team and other key personnel; our ability to timely adjust product prices to customers following price increase by the supply chain; our ability to adjust our inventory level due to reduction in demand due to inventory buffers accrued by customers; our expectations regarding the outcome of any future litigation in which we are named as a party; our ability to adequately protect and defend our intellectual property and other proprietary rights; our ability to successfully integrate or otherwise achieve anticipated benefits from acquired businesses; the market price and trading volume of the Valens ordinary shares may be volatile and could decline significantly; further deterioration of macroeconomic conditions due to ongoing global political and economic uncertainty, including with respect to China–Taiwan relations and increasing trade and other tariff-related tensions (as our current guidance assumes the estimated production and/or demand impact on us of current tariff conditions); political, economic, governmental and tax consequences associated with our incorporation and location in Israel; and those factors discussed in Valens’ Form 20-F filed with the SEC on February 26, 2025 under the heading “Risk Factors,” and other documents of Valens filed, or to be filed, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Valens does not presently know or that Valens currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Valens’ expectations, plans or forecasts of future events and views as of the date of this press release. Valens anticipates that subsequent events and developments may cause Valens’ assessments to change. However, while Valens may elect to update these forward-looking statements at some point in the future, Valens specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Valens’ assessment as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.

About Valens Semiconductor

Valens Semiconductor is a leader in high-performance connectivity, enabling customers to transform the digital experiences of people worldwide. Valens’ chipsets are integrated into countless devices from leading customers, powering state-of-the-art audio-video installations, next-generation videoconferencing, and enabling the evolution of ADAS and autonomous driving. Pushing the boundaries of connectivity, Valens sets the standard everywhere it operates, and its technology forms the basis for the leading industry standards such as HDBaseT® and MIPI A-PHY. For more information, visit https://www.valens.com/.

VALENS SEMICONDUCTOR LTD.

SUMMARY OF FINANCIAL RESULTS

(U.S. Dollars in thousands, except per share amounts)

	Three Months Ended March 31,
	2025	2024
Revenues	16,828	11,559
Gross Profit	10,582	6,815
Gross Margin	62.9 %	59.0 %
Net Loss	(8,308)	(10,042)
Working Capital^[1]	119,820	153,272
Cash, Cash Equivalents and Short-Term Deposits^[2]	112,540	139,787
Net Cash Used in Operating Activities	(7,611)	(1,390)
Non-GAAP Financial Data
Non-GAAP Gross Margin^[3]	66.7 %	62.0 %
Adjusted EBITDA Loss^[4]	(4,346)	(7,069)
Non-GAAP Loss Per Share^[5] (in U.S. Dollars)	$(0.03)	$(0.06)

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(U.S. Dollars in thousands, except share and per share amounts)

	Three Months Ended March 31,
	2025	2024

REVENUES	16,828	11,559
COST OF REVENUES	(6,246)	(4,744)
GROSS PROFIT	10,582	6,815
OPERATING EXPENSES:
Research and development expenses	(10,590)	(10,145)
Sales and marketing expenses	(5,607)	(4,388)
General and administrative expenses	(3,667)	(3,571)
Change in earnout liability	(174)	–
TOTAL OPERATING EXPENSES	(20,038)	(18,104)
OPERATING LOSS	(9,456)	(11,289)
Change in fair value of Forfeiture Shares	–	25
Financial income, net	1,238	1,234
LOSS BEFORE INCOME TAXES	(8,218)	(10,030)
INCOME TAXES	(93)	(17)
LOSS AFTER INCOME TAXES	(8,311)	(10,047)
Equity in earnings of investee	3	5
NET LOSS	(8,308)	(10,042)
EARNINGS PER SHARE DATA: BASIC AND DILUTED NET LOSS PER ORDINARY SHARE^[6] (in U.S. Dollars)	$(0.08)	$(0.10)
WEIGHTED AVERAGE NUMBER OF SHARES USED IN CALCULATION OF NET LOSS PER ORDINARY SHARE	105,255,959	104,047,426
Change in unrealized losses on cash flow hedges	(542)	–
TOTAL COMPREHENSIVE LOSS	(8,850)	–

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. Dollars in thousands)

ASSETS	March 31, 2025		December 31, 2024
CURRENT ASSETS Cash and cash equivalents		40,997		35,423
Short-term deposits		71,543		95,532
Restricted Short-term deposit		1,153		1,138
Trade accounts receivable		9,551		7,751
Inventories		10,858		10,155
Prepaid expenses and other current assets		2,597		3,904
TOTAL CURRENT ASSETS		136,699		153,903
LONG-TERM ASSETS:
Property and equipment, net		3,498		3,555
Operating lease right-of-use assets		7,253		7,458
Intangible assets		4,467		4,702
Goodwill		1,847		1,847
Other assets		798		687
TOTAL LONG-TERM ASSETS		17,863		18,249
TOTAL ASSETS		154,562		172,152

LIABILITIES AND EQUITY CURRENT LIABILITIES		16,879		20,326
LONG-TERM LIABILITIES
Forfeiture Shares		1		1
Non-current operating leases liabilities		6,412		6,645
Earnout liability		2,587		2,413
Other long-term liabilities		76		79
TOTAL LONG-TERM LIABILITIES		9,076		9,138
TOTAL LIABILITIES		25,955		29,464

TOTAL SHAREHOLDERS’ EQUITY		128,607		142,688
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		154,562		172,152

VALENS SEMICONDUCTOR LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. Dollars in thousands)

	Three Months Ended March 31,
	2025	2024
CASH FLOW FROM OPERATING ACTIVITIES
Net loss for the period	(8,308)	(10,042)
Adjustments to reconcile net loss to net cash used in operating activities:
Income and expense items not involving cash flows:
Depreciation and amortization	770	456
Stock-based compensation	4,166	3,764
Exchange rate differences	140	525
Realized and unrealized losses on non-designated derivative instruments	(204)	–
Interest on short-term deposits	517	275
Change in fair value of forfeiture shares	–	(25)
Change in earnout liability	174	–
Reduction in the carrying amount of ROU assets	418	484
Equity in earnings of investee, net of dividend received	(3)	5
Changes in operating assets and liabilities, net of effects of business acquired:
Trade accounts receivable	(1,800)	4,735
Prepaid expenses and other current assets	825	207
Inventories	(762)	1,347
Other assets	(115)	74
Current Liabilities	(3,196)	(2,761)
Change in operating lease liabilities	(230)	(418)
Other long-term liabilities	(3)	(16)
Net cash used in operating activities	(7,611)	(1,390)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in short-term deposits	(30,005)	(37,840)
Maturities of short-term deposits	53,278	56,979
Purchase of property and equipment	(357)	(30)
Derivative instruments of non-designated hedges	(265)	–
Net cash provided by investing activities	22,651	19,109
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of Ordinary Shares	(9,585)	–
Exercise of stock options	188	126
Net cash provided by (used in) financing activities	(9,397)	126

Effect of exchange rate changes on cash and cash equivalents	(69)	(5)
INCREASE IN CASH AND CASH EQUIVALENTS	5,574	17,839
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	35,423	17,261
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	40,997	35,100

SUPPLEMENT DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for taxes	19	35

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Trade accounts payable on account of property and equipment	62	212
Operating lease liabilities arising from obtaining operating right-of-use assets	213	31

VALENS SEMICONDUCTOR LTD.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(U.S. Dollars in thousands)

The following table provides a reconciliation of Net loss to Adjusted EBITDA, a non-GAAP measure. Adjusted EBITDA is defined as Net profit (loss) before financial income (expense), net, income taxes, equity in earnings of investee and depreciation and amortization, further adjusted to exclude share-based compensation and change in fair value of Forfeiture Shares and change in earnout liability, which may vary from period-to-period. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other issuers, because not all issuers calculate Adjusted EBITDA in the same manner. Adjusted EBITDA should not be considered as an alternative to Net loss or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity.

Although we provide guidance for Adjusted EBITDA, we are not able to provide guidance for projected Net profit (loss), the most directly comparable GAAP measures. Certain elements of Net profit (loss), including share-based compensation expenses and warrant valuations, are not predictable due to the high variability and difficulty of making accurate forecasts. As a result, it is impractical for us to provide guidance on Net profit (loss) or to reconcile our Adjusted EBITDA guidance without unreasonable efforts. Consequently, no disclosure of projected Net profit (loss) is included. For the same reasons, we are unable to address the probable significance of the unavailable information.

		Three Months Ended March 31,
		2025	2024

Net Loss		(8,308)	(10,042)
Adjusted to exclude the following:
	Change in fair value of Forfeiture Shares	–	(25)
	Change in earnout liability	174	–
	Financial income, net	(1,238)	(1,234)
	Income taxes	93	17
	Equity in earnings of investee	(3)	(5)
	Depreciation	770	456
	Stock-based compensation expenses	4,166	3,764
Adjusted EBITDA Loss		(4,346)	(7,069)

VALENS SEMICONDUCTOR LTD.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(U.S. Dollars in thousands, except per share amounts)

The following tables provide a calculation of the GAAP Loss per share and reconciliation to Non-GAAP Loss per share.

	Three Months Ended March 31,
GAAP Loss per Share	2025	2024

GAAP Net Loss used for computing Loss per Share	(8,308)	(10,042)
Earnings Per Share Data:
GAAP Loss per Share (in U.S. Dollars)	$(0.08)	$(0.10)
Weighted average number of shares used in calculation of net loss per share	105,255,959	104,047,426
	Three Months Ended March 31,
Non-GAAP Loss per Share^[7]	2025	2024

GAAP Net Loss	(8,308)	(10,042)
Adjusted to exclude the following:
Stock based compensation	4,166	3,764
Depreciation	770	456
Change in fair value of Forfeiture Shares	–	(25)
Change in earnout liability	174	–
Total Non-GAAP Loss used for computing Loss per Share	(3,198)	(5,847)
Earnings Per Share Data:
Non-GAAP Loss per Share (in U.S. Dollars)	$(0.03)	$(0.06)
Weighted average number of shares used in calculation of net loss per share	105,255,959	104,047,426

^1. Working Capital is calculated as Total Current Assets, less Total Current Liabilities, as of the last day of the period.

^2. As of the last day of the period.

^3. Non-GAAP Gross Margin is defined as: GAAP Gross Profit excluding share-based compensation and depreciation and amortization expenses, divided by revenue. For the three months ended March 31, 2025, and 2024, share-based compensation and depreciation and amortization expenses were $650 thousand and $347 thousand, respectively.

^4. Adjusted EBITDA is defined as Net profit (loss) before financial income (expense), net, income taxes, equity in earnings of investee, and depreciation and amortization, further adjusted to exclude share-based compensation and change in fair value of Forfeiture Shares and in earnout liability, which may vary from period-to-period. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by other issuers, because not all issuers calculate Adjusted EBITDA in the same manner. Adjusted EBITDA should not be considered as an alternative to Net loss or any other performance measures derived in accordance with GAAP or as an alternative to cash flows from operating activities as a measure of our liquidity. Please refer to the appendix at the end of this press release for a reconciliation to the most directly comparable measure in accordance with GAAP.

^5.See reconciliation of GAAP to non-GAAP financial measures.

^6. See footnote 5.
^7. The company calculates its non-GAAP Loss per Share as GAAP Net Loss adjusted to exclude the following: Stock based compensation, depreciation and amortization, and the change in fair value of Forfeiture Share and earnout liability divided by the weighted average number of shares used in calculation of net loss per share.

For more information, please contact:

Michal Ben Ari

Investor Relations Manager
Valens Semiconductor Ltd.
[email protected]

Miri Segal
MS-IR IR for Valens
[email protected]

Media Contact:

Yoni Dayan
Head of Communications
Valens Semiconductor Ltd.
[email protected]

Photo – https://mma.prnewswire.com/media/2681398/Valens_Semiconductor_financial_results.jpg

Logo – https://mma.prnewswire.com/media/2309625/Valens_Semiconductor_Logo.jpg

View original content to download multimedia:https://www.prnewswire.com/news-releases/valens-semiconductor-reports-first-quarter-2025-results-302448478.html

SOURCE Valens Semiconductor

May 7, 2025 6:34 am

BIO-TECHNE DECLARES DIVIDEND AND NEW SHARE REPURCHASE PROGRAM

PR Newswire

MINNEAPOLIS
, May 7, 2025 /PRNewswire/ — Bio-Techne Corporation (NASDAQ: TECH) announced that its Board of Directors has decided to pay a dividend of $0.08 per share for the quarter ended March 31, 2025. The quarterly dividend will be payable May 30, 2025, to all common shareholders of record on May 19, 2025. Future cash dividends will be considered by the Board of Directors on a quarterly basis.

Bio-Techne also announced this week that its board of directors has approved a new share repurchase program authorizing the repurchase of up to $500 million of common stock. The new share repurchase program begins May 8, 2025 and replaces the previous program. The timing and number of shares to be repurchased will depend on factors such as the share price, economic and market conditions, and corporate and regulatory requirements. The share repurchase program may be suspended, amended, or discontinued at any time and does not obligate the Company to acquire any specific dollar amount or number of shares of common stock.

Forward Looking Statements:
Our press releases may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Such statements involve risks and uncertainties that may affect the actual results of operations. Forward looking statements in this press release include statements regarding potential future repurchase of Bio-Techne common stock. The following important factors, among others, have affected and, in the future, could affect the Company’s actual results and future share price: the effect of new branding and marketing initiatives, the integration of new businesses and leadership, the introduction and acceptance of new products, the funding and focus of the types of research by the Company’s customers, the impact of the growing number of producers of biotechnology research products and related price competition, general economic conditions, customer site closures or supply chain issues, the impact of currency exchange rate fluctuations, and the costs and results of research and product development efforts of the Company and of companies in which the Company has invested or with which it has formed strategic relationships.

Contact:	David Clair, Vice President, Investor Relations & Corporate Development
	[email protected]
	612-656-4416

View original content to download multimedia:https://www.prnewswire.com/news-releases/bio-techne-declares-dividend-and-new-share-repurchase-program-302447833.html

SOURCE Bio-Techne Corporation

May 7, 2025 6:34 am

VIAVI Advances Railway Communication Modernization as Part of the MORANE-2 Project

PR Newswire

Industry-leading test and validation solutions from VIAVI ensure FRMCS prototypes meet evolving European railway communication needs

CHANDLER, Ariz.
, May 7, 2025 /PRNewswire/ — VIAVI Solutions Inc. (VIAVI) (NASDAQ: VIAV) today announced its participation in the Mobile Radio for Railways Networks in Europe 2 (MORANE-2) project, which will test Future Railway Mobile Communication System (FRMCS) specifications in real-world conditions and pave the way for digital railway communication. A global leader in railway test and monitoring solutions, VIAVI is one of only a few monitoring suppliers supporting the MORANE-2 project.

The current Global System for Mobile Communications – Railway (GSM-R) is expected to begin its phase out by 2030 and FRMCS is emerging as a clear successor. VIAVI’s EVOIA Drive Test will be used to help deploy the new FRMCS network. In addition, EVOIA Assure will monitor and evaluate FRMCS prototypes in both laboratory settings and on railway tracks to ensure they meet the evolving demands of current and future rail networks. This includes support for the European Train Control System (ECTS), Automatic Train Operation (ATO), and real-time data and video services.

“We are proud to contribute to MORANE-2, a groundbreaking initiative to ensure efficient, sustainable and resilient railway communications,” said Max Beccuti, Railway Product Line Manager, VIAVI. “As a leader in mission-critical network testing and measurement, VIAVI contributes to this project by designing technical metrics, defining KPIs, and offering state-of-the-art monitoring and active test solutions for testing FRMCS network specifications.”

MORANE-2 aims to validate product development standards and is expected to run for 34 months between 2024 – 2027. The project will enable the inclusion of FRMCS specifications in the Technical Specifications for Interoperability (TSI), which defines the technical and operational standards that each subsystem, or part of a subsystem, must meet to satisfy essential requirements and ensure the interoperability of railway systems. A collaborative European initiative funded by Europe’s Rail (EU-RAIL) and the European Smart Networks and Services Joint Undertakings, the MORANE-2 project represents a significant step toward modernizing railway telecommunications across Europe, enhancing efficiency, sustainability and digital connectivity.

VIAVI has demonstrated its robust test, measurement and monitoring solutions at several events. In the railway sector, this included making a presentation at the 2024 UIC (International Union of Railways) FRMCS Global Conference in Paris and debuting as an exhibitor at InnoTrans, the world’s largest railway exhibition.

The VIAVI Mission Critical and Railway team will host its annual Railway User Group in Stockholm on June 3-5. The VIAVI team will also attend the 5×5: The Public Safety Innovation Summit on June 3-5 in Seattle, and TCCA Critical Communications World 2025 on June 17-19 in Belgium.

VIAVI is a member of UNIFE (Union des Industries Ferroviaires Européennes), the European association representing the rail supply industry, which advocates for innovation, sustainability and standardization in railway systems.

About VIAVI
VIAVI (NASDAQ: VIAV) is a global provider of network test, monitoring and assurance solutions for telecommunications, cloud, enterprises, first responders, military, aerospace and railway. VIAVI is also a leader in light management technologies for 3D sensing, anti-counterfeiting, consumer electronics, industrial, automotive, government and aerospace applications. Learn more about VIAVI at www.viavisolutions.com. Follow us on VIAVI Perspectives, LinkedIn and YouTube.

Media Inquiries:
Grand Bridges
Emma Jenkins
[email protected]
+1 415 800 4529

View original content to download multimedia:https://www.prnewswire.com/news-releases/viavi-advances-railway-communication-modernization-as-part-of-the-morane-2-project-302445775.html

SOURCE VIAVI Solutions

May 7, 2025 6:34 am

Westwater Resources Receives Letter of Interest from US EXIM Bank for the Kellyton Graphite Plant

Westwater Resources Receives Letter of Interest from US EXIM Bank for the Kellyton Graphite Plant

CENTENNIAL, Colo.–(BUSINESS WIRE)–Westwater Resources, Inc. (NYSE American: WWR), an energy technology and battery-grade natural graphite company (“Westwater” or the “Company”), announced today that it has received a letter of interest from US EXIM Bank (“EXIM”) for its Kellyton Graphite Plant, under the “Make More in America Initiative” and the “China and Transformational Export Program.” The letter of interest is separate from the Phase I debt syndication process for the Kellyton plant previously announced, which is still progressing.

“Westwater continues to make progress syndicating its previously announced debt facility. This LOI from EXIM adds additional potential sources of funding as we continue the development of our Kellyton graphite anode processing plant, which is 100% sold out for phase one,” said Steve Cates, Westwater’s Chief Financial Officer.

The progression from a letter of interest to a loan commitment from EXIM requires a formal application, and for EXIM to complete due diligence, underwriting, and finalization of terms and conditions. No assurance can be given that the Company will ultimately enter into a loan transaction with EXIM.

About Westwater Resources, Inc.

Westwater Resources is an energy technology company that is focused on developing battery-grade natural graphite. Westwater Resources’ primary project is the Kellyton Graphite Processing Plant that is under construction in east-central Alabama. In addition, Westwater Resources’ Coosa Graphite Deposit is the largest and most advanced natural flake graphite deposit in the contiguous United States — and is located across 41,965 acres (~17,000 hectares) in Coosa County, Alabama. For more information, visit westwaterresources.net.

Cautionary Statement Regarding Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words and phrases such as “progressing,” “progress,” “potential,” “development,” and other similar words or phrases. Forward looking statements include, among other things, statements concerning the Company’s business plans for its Kellyton Graphite Processing Plant including efforts to syndicate a debt facility for its continued construction. The Company cautions that there are factors that could cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of the Company; accordingly, there can be no assurance that such suggested results will be realized. Those uncertainties and other factors are discussed in Westwater’s Annual Report on Form 10-K for the year ended December 31, 2024, and subsequent securities filings, and they could cause actual results to differ materially from management expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250507179897/en/

Westwater Resources, Inc.

Email: [email protected]

Investor Relations

Email: [email protected]

KEYWORDS: North America United States Australia Australia/Oceania Canada Colorado

INDUSTRY KEYWORDS: Other Energy Natural Resources Other Manufacturing Alternative Energy Energy Engineering Mining/Minerals Manufacturing

MEDIA:

Logo

May 7, 2025 6:33 am

MarketAxess Reports First Quarter 2025 Financial Results

MarketAxess Reports First Quarter 2025 Financial Results

EPS of $0.40; $1.87 Excluding Notable Items¹

Record Total ADV Driven by Record Credit ADV with Record Open Trading ADV of $4.8 billion

Record Total Portfolio Trading ADV and Record Levels of Block Trading in Emerging Markets and Eurobonds

NEW YORK–(BUSINESS WIRE)–
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the first quarter ended March 31, 2025.

1Q25 select financial and operational highlights*

Total revenues of $208.6 million, including a decrease ofapproximately $0.3 million from the impact of foreign currency fluctuations, decreased 1% compared to the prior year.

2% decline in total commission revenue driven by 3% decline in total credit commissions, partially offset by 34% increase in total rates commission revenue.

Record emerging markets (+6%) and record eurobonds (+5%) commission revenue helped to partially offset 7% decline in U.S. credit commission revenue.

Record services revenue (combined information, post-trade and technology services revenue) of $27 million, up 7%.

Record ADV achieved across strategic priority related protocols and workflow tools, including:

Emerging markets and eurobonds block trading ADV, up 22% and 68%, respectively.

Total portfolio trading ADV of $1.3 billion, up 78%.

Dealer RFQ ADV of $1.8 billion, up 40%.

Open Trading ADV of $4.8 billion, up 8%.

Total expenses of $120.2 million,up 2%,includinga decrease of approximately $0.3 million from the impact of foreign currency fluctuations.

Effective tax rate of 84.3%.¹ The effective tax rate excluding notable items¹ was 27.2%.

Diluted earnings-per-share (“EPS”) of $0.40 on net income of $15.1million; EPS of $1.87 on net income of $70.0 million, each excluding notable items.¹

*All comparisons versus 1Q24

Chris Concannon, CEO of MarketAxess, commented:

“We generated record daily volumes across most of our product areas in the first quarter, including record portfolio trading ADV and record block trading ADV across both emerging markets and eurobonds.

During 1Q25 and continuing in early 2Q25, we have been encouraged by the performance of our platform and protocols as our clients have navigated the ongoing credit market volatility. Open Trading activity reached record levels in 1Q25, and we continue to see higher levels of velocity. We believe that MarketAxess’ platform is well-positioned in this environment. Looking ahead, we expect the new capabilities launched with our targeted block solution and enhancements to portfolio trading should help drive higher levels of market share in U.S. credit in the coming quarters.”

Table 1: 1Q25 select financial results

Quarter % Change

1Q25

4Q24

1Q24

YoY QoQ

$ in millions, except per share data (unaudited)

Revenues
$

209

$

202

$

210

(1

)

%

3

%

Operating Income

88

80

93

(4

)

11

Net Income

15

65

73

(79

)

(77

)

Diluted EPS

0.40

1.73

1.92

(79

)

(77

)

Net Income Margin

7.2

%

32.2

%

34.5

%

(79

)

(78

)

EBITDA²

107

97

109

(2

)

11

EBITDA Margin²

51.5

%

47.8

%

51.9

%

(1

)

8

1Q25 overview of results

Table 1A: Notable items

Quarter

1Q25

4Q24

1Q24

$ in millions, except per share data (unaudited)

Reserve for uncertain tax positions related to prior periods
54.9

–

–

EPS impact
1.47

–

–

Notable items¹

Reserve for uncertain tax positions of approximately $54.9 million taken related to prior periods. The Company established a reserve in 1Q25 following a NY statetax court’s issuance of an opinion that impacted the Company’s uncertain tax positions. The Company was not a party to the case, but its historical tax filing position was not supported by the Court’s decision.

Commission revenue

Table 1B: 1Q25 variable transaction fees per million (FPM)

Quarter % Change

1Q25

4Q24

1Q24
YoY QoQ

AVG. VARIABLE TRANS. FEE PER MILLION (FPM)

Total Credit
$

139

$

150

$

154

(10

)

%

(7

)

%

Total Rates

4.20

4.31

4.79

(12

)

(3

)

Credit

Total credit commission revenue of $169.1million (including $33.3million in fixed-distribution fees) decreased $5.7million, or 3%, compared to $174.8million (including $33.3 million in fixed-distribution fees) in the prior year, but increased 4% from 4Q24 levels. A 7% decline in U.S. credit commission revenue, principally due to lower total credit variable transaction fee per million (“FPM”) and lower estimated market share, was partially offset by a 6% increase in emerging markets and Eurobonds commission revenue, as well as a 6% increase in municipal bonds commission revenue, reflecting continued strong product and geographic diversification. The decline in 1Q25 total credit FPM both year-over-year and quarter-over-quarter was due principally to product mix.

Rates

Total rates commission revenue of $7.0 million increased $1.8 million, or 34%, compared to the prior year. Total rates ADV of $27.0 billion increased 53% compared to the prior year, but decreased 1% compared to 4Q24. The decrease in 1Q25 total rates FPM compared to the prior year and the prior quarter was driven by the impact of product mix.

Other

Total other commission revenue of $5.2million, which consists of Pragma-related commission revenue, increased 8% driven byhigher equities commissions.

Services revenue

Record services revenue of $27.2million increased $1.8million, or 7%, compared to the prior year, driven principally by a 9% increase in information services revenue.

Information services

Information services revenue of $12.9million increased $1.0million, or 9%, compared to the prior year. The increase was principally driven by net new data contract revenue.

Post-trade services

Post-trade services revenue of $11.1 million increased $0.4 million, or 3%, compared to the prior year mainly due to net new contract revenue, partially offset by a decrease of $0.2 million from the impact of foreign currency fluctuations.

Technology services

Total technology services revenue of $3.2million increased $0.4 million, or 14%, compared to the prior year.The increase was driven by higher Pragma-related license and connectivity fees.

Expenses

Total expenses of $120.2 million increased 2% from the prior year, including a decrease of $0.3 million from the impact of foreign currency fluctuations.

Non-operating

Other income (expense): Other income was $7.8million, up from $4.2million in the prior year. The increase was driven by higher interest income earned on our cash and investments, unrealized gains on our U.S. treasury investments compared to unrealized losses in the prior year, and lower foreign exchange losses compared to the prior period.

Tax rate: The effective tax rate was 84.3%, up from 24.9% in the prior year. The effective tax rate excluding notable items¹ was 27.2%.

Capital

The Company had $642.1 million in cash, cash equivalents, corporate bond investments and U.S. Treasury investments as of March 31, 2025, down from $698.6 million as of December 31, 2024.There were no outstanding borrowings under the Company’s credit facility.

A total of 250,792 shares were repurchased year-to-date through April 2025 at a cost of $51.7 million, including 187,905 shares repurchased during the first quarter at a cost of $38.1 million. As of April30, 2025, a total of $173.4 million remained under the Board of Directors’ share repurchase authorization.

The Board declared a quarterly cash dividend of $0.76 per share, payable on June 4, 2025 to stockholders of record as of the close of business on May 21, 2025.

Other

Employee headcount was 870 as of March 31, 2025, consistent with March 31, 2024, but down from 891 as of December 31, 2024.

Guidance

Due to the reserve noted above, the GAAP-basis effective tax rate for full year 2025 is now expected to be between 41.0% and 42.0%,assuming no material changes in applicable tax laws; the effective tax rate excluding notable items¹ is expected to be between 26.0% and 27.0%. Previously, the GAAP-basis effective tax rate stated guidance range was between 23.5% and 24.5%.

¹

See Table 1A in this release for a listing of notable items. Results excluding notable items are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures.

²

EBITDA and EBITDA margin are non-GAAP financial measures. Refer to “Non-GAAP financial measures and other items” for a discussion of these non-GAAP financial measures.

Non-GAAP financial measures and other items

To supplement the Company’s unaudited financial statements presented in accordance with generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization (“EBITDA”), EBITDA margin and free cash flow. From time to time, we present selected GAAP-basis financial results, excluding notable items. Notable items are revenues, expenses, other income (expense) and tax related items that are non-recurring and outside of the Company’s normal course of business or other notables, such as acquisition and restructuring charges or gains/losses on sales (collectively, “notable items”). We define EBITDA margin as EBITDA divided by revenues. We define free cash flow as net cash provided by/(used in) operating activities excluding the net change in trading investments and net change in securities failed-to-deliver and securities failed-to-receive from broker-dealers, clearing organizations and customers, less expenditures for furniture, equipment and leasehold improvements and capitalized software development costs. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in conformity with GAAP. The Company believes that these non-GAAP financial measures, when taken into consideration with the corresponding GAAP financial measures, provide additional information regarding the Company’s operating results because they assist both investors and management in analyzing and evaluating the performance of our business. Please refer to Tables 6, 7 & 8for a reconciliation of: (i) GAAP net income, EPS and the effective tax rate to net income, EPS and the effective tax rate, each excluding notable items; (ii) GAAP net income to EBITDA and GAAP net income margin to EBITDA margin; and (iii) GAAP net cash provided by/(used in) operating activities to free cash flow, in each case, the most directly comparable GAAP measure.

Webcast and conference call information

Chris Concannon, Chief Executive Officer and Ilene Fiszel Bieler, Chief Financial Officer will host a conference call to discuss the Company’s financial results and outlook on Wednesday, May 7, 2025 at 10:00 a.m. ET. To access the conference call, please dial 646-307-1963 (U.S./International) and use the ID 1832176. The Company will also host a live audio Webcast of the conference call on the Investor Relations section of the Company’s website at http://investor.marketaxess.com. The Webcast will be archived on http://investor.marketaxess.com for 90 days following the announcement.

General Notes Regarding the Data Presented

Reported MarketAxess volume in all product categories includes only fully electronic trading volume. MarketAxess trading volumes and the Financial Industry Regulatory Authority (“FINRA”) Trade Reporting and Compliance Engine (“TRACE”) reported volumes are available on the Company’s website at investor.marketaxess.com/volume.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including statements about the outlook and prospects for the Company, market conditions and industry growth, as well as statements about the Company’s future financial and operating performance. These and other statements that relate to future results and events are based on MarketAxess’ current expectations. The Company’s actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including: global economic, political and market factors; the level of trading volume transacted on the MarketAxess platform; the rapidly evolving nature of the electronic financial services industry; the level and intensity of competition in the fixed-income electronic trading industry and the pricing pressures that may result; the variability of our growth rate; our ability to introduce new fee plans and our clients’ response; our ability to attract clients or adapt our technology and marketing strategy to new markets; risks related to our growing international operations; our dependence on our broker-dealer clients; the loss of any of our significant institutional investor clients; our exposure to risks resulting from non-performance by counterparties to transactions executed between our clients in which we act as an intermediary in matched principal trades; risks related to self-clearing; risks related to sanctions levied against states or individuals that could expose us to operational or regulatory risks; the effect of rapid market or technological changes on us and the users of our technology; issues related to the development and use of artificial intelligence; our dependence on third-party suppliers for key products and services; our ability to successfully maintain the integrity of our trading platform and our response to system failures, capacity constraints and business interruptions; the occurrence of design defects, errors, failures or delays with our platforms, products or services; our vulnerability to malicious cyber-attacks and attempted cybersecurity breaches; our actual or perceived failure to comply with privacy and data protection laws; our ability to protect our intellectual property rights or technology and defend against intellectual property infringement or other claims; our use of open-source software; our ability to enter into strategic alliances and to acquire other businesses and successfully integrate them with our business; our dependence on our management team and our ability to attract and retain talent; limitations on our flexibility because we operate in a highly regulated industry; the increasing government regulation of us and our clients; risks related to the divergence of U.K. and European Union legal and regulatory requirements following the U.K.’s exit from the European Union; our exposure to costs and penalties related to our extensive regulation; our risks of litigation and securities laws liability; our tax filing positions; the effects of climate change or other sustainability risks that could affect our operations or reputation; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; our exposure to financial institutions by holding cash in excess of federally insured limits; and other factors. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. More information about these and other factors affecting MarketAxess’ business and prospects is contained in MarketAxess’ periodic filings with the Securities and Exchange Commission and can be accessed at www.marketaxess.com.

About MarketAxess

MarketAxess (Nasdaq: MKTX) operates a leading electronic trading platform that delivers greater trading efficiency, a diversified pool of liquidity and significant cost savings to institutional investors and broker-dealers across the global fixed-income markets. Approximately 2,100 firms leverage MarketAxess’ patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. MarketAxess’ award-winning Open Trading® marketplace is widely regarded as the preferred all-to-all trading solution in the global credit markets. Founded in 2000, MarketAxess connects a robust network of market participants through an advanced full trading lifecycle solution that includes automated trading solutions, intelligent data and index products and a range of post-trade services. Learn more at www.marketaxess.com and on X @MarketAxess.

Table 2: Consolidated Statements of Operations

Three Months Ended

March 31,

In thousands, except per share data (unaudited)

2025

2024

% Change

Revenues

Commissions

$

181,343

$

184,873

(2

)

%

Information services

12,904

11,881

9

Post-trade services

11,088

10,730

3

Technology services

3,241

2,834

14

Total revenues

208,576

210,318

(1

)

Expenses

Employee compensation and benefits

61,916

61,264

1

Depreciation and amortization

18,236

18,200

—

Technology and communications

18,048

17,051

6

Professional and consulting fees

6,410

6,395

—

Occupancy

3,622

3,425

6

Marketing and advertising

2,061

1,833

12

Clearing costs

4,185

4,911

(15

)

General and administrative

5,716

4,739

21

Total expenses

120,194

117,818

2

Operating income

88,382

92,500

(4

)

Other income (expense)

Interest income

7,169

5,973

20

Interest expense

(213

)

(316

)

(33

)

Equity in earnings of unconsolidated affiliate

289

370

(22

)

Other, net

527

(1,810

)

NM

Total other income (expense)

7,772

4,217

84

Income before income taxes

96,154

96,717

(1

)

Provision for income taxes

81,089

24,102

236

Net income

$

15,065

$

72,615

(79

)

Per Share Data:

Net income per common share

Basic

$

0.40

$

1.92

Diluted

$

0.40

$

1.92

Cash dividends declared per

common share

$

0.76

$

0.74

Weighted-average common shares:

Basic

37,388

37,740

Diluted

37,456

37,790

NM – not meaningful

Table 3: Commission Revenue Detail

In thousands, except fee per million data

Three Months Ended March 31,

(unaudited)

2025

2024

% Change

Variable transaction fees

Credit

$

135,840

$

141,504

(4

)

%

Rates

6,919

5,166

34

Other

5,232

4,849

8

Total variable transaction fees

147,991

151,519

(2

)

Fixed distribution fees

Credit

33,265

33,288

—

Rates

87

66

32

Total fixed distribution fees

33,352

33,354

—

Total commission revenue

$

181,343

$

184,873

(2

)

Average variable transaction fee per million

Credit

$

139

$

154

(10

)

%

Rates

4.20

4.79

(12

)

Table 4: Trading Volume Detail*

Three Months Ended March 31,

In millions (unaudited)

2025

2024

% Change

Volume

ADV

Volume

ADV

Volume

ADV

Credit

High-grade

$

461,308

$

7,562

$

455,998

$

7,475

1

%

1

%

High-yield

89,997

1,475

85,379

1,400

5

5

Emerging markets

240,285

3,939

221,427

3,630

9

9

Eurobonds

147,917

2,348

128,849

2,045

15

15

Other credit

36,482

598

26,335

432

39

38

Total credit trading

975,989

15,922

917,988

14,982

6

6

Rates

U.S. government bonds

1,582,081

25,936

1,045,796

17,144

51

51

Agency and other government bonds

65,825

1,047

31,626

506

108

107

Total rates trading

1,647,906

26,983

1,077,422

17,650

53

53

Total trading

$

2,623,895

$

42,905

$

1,995,410

$

32,632

31

31

Number of U.S. Trading Days¹

61

61

Number of U.K. Trading Days²

63

63

¹ The number of U.S. trading days is based on the SIFMA holiday recommendation calendar.

²The number of U.K. trading days is based on the U.K. Bank holiday schedule.

*Consistent with FINRA TRACE reporting standards, both sides of trades are included in the Company’s reported volumes when the Company executes trades on a matched principal basis between two counterparties. Consistent with industry standards, U.S. government bond trades are single-counted.

Table 5: Consolidated Condensed Balance Sheet Data

As of

In thousands (unaudited)

March 31, 2025

December 31, 2024

Assets

Cash and cash equivalents

$

486,224

$

544,478

Cash segregated under federal regulations

47,514

47,107

Investments, at fair value

166,113

165,260

Accounts receivable, net

109,171

91,845

Receivables from broker-dealers, clearing organizations and customers

493,613

357,728

Goodwill

236,706

236,706

Intangible assets, net of accumulated amortization

94,430

98,078

Furniture, equipment, leasehold improvements and capitalized software, net

107,858

107,298

Operating lease right-of-use assets

56,624

58,132

Prepaid expenses and other assets

79,843

82,584

Total assets

$

1,878,096

$

1,789,216

Liabilities and stockholders’ equity

Liabilities

Accrued employee compensation

$

30,912

$

68,054

Payables to broker-dealers, clearing organizations and customers

318,866

218,845

Income and other tax liabilities

80,987

3,683

Accounts payable, accrued expenses and other liabilities

29,215

37,320

Operating lease liabilities

70,803

72,654

Total liabilities

530,783

400,556

Stockholders’ equity

Common stock

123

123

Additional paid-in capital

348,708

350,701

Treasury stock

(370,342

)

(333,369

)

Retained earnings

1,392,279

1,405,904

Accumulated other comprehensive loss

(23,455

)

(34,699

)

Total stockholders’ equity

1,347,313

1,388,660

Total liabilities and stockholders’ equity

$

1,878,096

$

1,789,216

Table 6: Reconciliation of Notable Items

$ in thousands, except per share data (unaudited)

1Q 2025

4Q 2024

1Q 2024

Net income, GAAP-basis

$

15,065

$

65,139

$

72,615

Exclude: Notable items

Reserve for uncertain tax positions related to prior periods

54,939

—

—

Net income, excluding notable items

$

70,004

$

65,139

$

72,615

Diluted EPS, GAAP-basis

$

0.40

$

1.73

$

1.92

Notable items as reconciled above

1.47

—

—

Diluted EPS, excluding notable items

$

1.87

$

1.73

$

1.92

Effective tax rate, GAAP-basis

84.3

%

23.0

%

24.9

%

Notable items as reconciled above

(57.1

)

—

—

Effective tax rate, excluding notable items

27.2

%

23.0

%

24.9

%

Table 7: Reconciliation of Net Income to EBITDA and Net Income Margin to EBITDA Margin

In thousands (unaudited)

1Q 2025

4Q 2024

1Q 2024

Net income

$

15,065

$

65,139

$

72,615

Add back:

Interest income

(7,169

)

(6,719

)

(5,973

)

Interest expense

213

318

316

Provision for income taxes

81,089

19,456

24,102

Depreciation and amortization

18,236

18,540

18,200

EBITDA

$

107,434

$

96,734

$

109,260

Net income margin¹

7.2

%

32.2

%

34.5

%

Add back:

Interest income

(3.4

)

(3.3

)

(2.8

)

Interest expense

0.1

0.2

0.2

Provision for income taxes

38.9

9.5

11.4

Depreciation and amortization

8.7

9.2

8.6

EBITDA margin²

51.5

%

47.8

%

51.9

%

Table 8: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

In thousands (unaudited)

1Q 2025

4Q 2024

1Q 2024

Net cash (used in)/provided by operating activities

$

29,629

$

176,248

$

(4,949

)

Exclude: Net change in trading investments

—

—

(255

)

Exclude: Net change in fail-to-deliver/receive from broker-dealers, clearing organizations and customers

34,399

(51,833

)

51,288

Less: Purchases of furniture, equipment and leasehold improvements

(1,930

)

(215

)

(1,197

)

Less: Capitalization of software development costs

(15,031

)

(10,833

)

(13,963

)

Free cash flow

$

47,067

$

113,367

$

30,924

¹ Net income margin is derived by dividing net income by total revenues for the applicable period.

² EBITDA margin is derived by dividing EBITDA by total revenues for the applicable period.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250506701330/en/

INVESTOR RELATIONS

Stephen Davidson

MarketAxess Holdings Inc.

+1 212 813 6313

[email protected]

MEDIA RELATIONS

Marisha Mistry

MarketAxess Holdings Inc.

+1 917 267 1232

[email protected]

KEYWORDS: United States North America New York

INDUSTRY KEYWORDS: Fintech Professional Services Finance

MEDIA:

Logo

Posted on May 7, 2025 6:33 am
Turning Point Brands Announces First Quarter 2025 Results

Turning Point Brands Announces First Quarter 2025 Results

Net Sales for Q1 2025 Increased 28.1% Year-Over-Year to $106.4 million

Modern Oral Net Sales for Q1 2025 of $22.3 million

Q1 2025 Adjusted EBITDA of $27.7 million, up 12.0% over prior year

Reaffirm our previously announced 2025 Adjusted EBITDA guidance of $108.0 – 113.0 million; increasing full-year consolidated nicotine pouch sales guidance to a range of $80.0 – 95.0 million, from $60.0 – 80.0 million

LOUISVILLE, Ky.–(BUSINESS WIRE)–Turning Point Brands, Inc. (“TPB” or “the Company”) (NYSE: TPB), a manufacturer, marketer and distributor of branded consumer products, including alternative smoking accessories and consumables with active ingredients, today announced financial results for the first quarter ended March 31, 2025.

Q1 2025 vs. Q1 2024

Total consolidated net sales increased 28.1% to $106.4 million

Stoker’s Products net sales increased 62.7%

Zig-Zag Products net sales increased 1.2%

Gross profit increased 23.3% to $59.6 million

Net income increased 19.8% to $14.4 million

Adjusted EBITDA increased 12.0% to $27.7 million (see Schedule A for a reconciliation to net income)

Adjusted net income increased 8.0% to $16.7 million (see Schedule B for a reconciliation to net income)

Diluted EPS of $0.79 and Adjusted Diluted EPS of $0.91 compared to $0.63 and $0.80, respectively, in the same period one year ago (see Schedule B for a reconciliation to Diluted EPS)

Graham Purdy, President and CEO, commented, “We are pleased with our first quarter results. Modern Oral sales were $22.3 million, up nearly 10-times versus the prior year and nearly double the prior quarter. Stoker’s MST and looseleaf exceeded our expectations, and Zig-Zag was in line with our expectations.”

Zig-Zag Products Segment (44% of total net sales in the quarter)

For the first quarter, Zig-Zag Products net sales increased 1.2% to $47.3 million.

For the quarter, the Zig-Zag Products segment gross profit decreased 7.2% from the prior year but was up 2.9% sequentially from Q4 2024 to $25.6 million. Gross margin declined 490 basis points from the prior year but was flat sequentially at 54.1%.

Stoker’s Products Segment (56% of total net sales in the quarter)

For the first quarter, Stoker’s Products net sales increased 62.7% to $59.2 million, driven by strong growth in Modern Oral sales, low double-digit growth in MST and low single-digit growth in looseleaf. For the first quarter, total Stoker’s Products segment volume increased 55.1%, while price / product mix increased 7.6%.

For the quarter, Stoker’s Products segment gross profit increased 63.6% from the prior year, and 23.5% sequentially from Q4 2024 to $34.0 million. Gross margin increased 30 basis points from the prior year, but decreased 20 basis points sequentially to 57.5%.

Performance Measures in the First Quarter

First quarter 2025 consolidated selling, general and administrative (“SG&A”) expenses were $36.4 million compared to $29.1 million in the first quarter of 2024 primarily driven by ALP-related SG&A that was not in the prior year period.

First quarter SG&A included the following notable items:

$1.6 million of FDA PMTA-related expenses for modern oral products compared to $0.8 million in the prior year period; and

$0.2 million of transaction-related costs compared to $0.0 million in the prior year period.

Total gross debt as of March 31, 2025 was $300.0 million. Net debt (total gross debt less unrestricted cash) as of March 31, 2025 was $200.4 million. The Company ended the quarter with total liquidity of $161.8 million, comprised of $99.6 million in cash and $62.2 million of availability under its asset backed revolving credit facility.

2025 Outlook

The Company is increasing projected Modern Oral sales from $60.0 – 80.0 million to $80.0 – 95.0 million.

The Company is maintaining its previous expectation for full-year 2025 adjusted EBITDA of $108.0 – 113.0 million.

Earnings Conference Call

As previously disclosed, a conference call with the investment community to review TPB’s financial results has been scheduled for 9:30 a.m. Eastern on Wednesday, May 7, 2025. Investment community participants should dial in 10 minutes ahead of time using the toll-free number (800) 715-9871 (international participants should call (646) 307-1963) and follow the audio prompts after typing in the event ID: 6640134. A live listen-only webcast of the call will be available on the Events and Presentations section of the investor relations portion of the Company website (www.turningpointbrands.com). A replay of the webcast will be available on the site two hours following the call.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), this press release includes certain non-GAAP financial measures including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS and Adjusted Operating Income (Loss). A reconciliation of these non-GAAP financial measures accompanies this release.

About Turning Point Brands, Inc.

Turning Point Brands (NYSE: TPB) is a manufacturer, marketer and distributor of branded consumer products including smoking accessories and consumables with active ingredients through its Zig-Zag®, Stoker’s®, FRE ®, and Alp Pouch ® brands. TPB’s products are available in more than 220,000 retail outlets in North America, and on sites such as www.zigzag.com. For the latest news and information about TPB and its brands, please visit www.turningpointbrands.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “plan” and “will” or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by TPB in this press release, its reports filed with the Securities and Exchange Commission (the “SEC”) and other public statements made from time-to-time speak only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for TPB to predict or identify all such events or how they may affect it. TPB has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to, those included in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by the Company with the SEC. These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

Financial Statements Follow on Subsequent Pages

Turning Point Brands, Inc.

Consolidated Statements of Income

(dollars in thousands except share data)

(unaudited)

Three Months Ended March 31,

2025

2024

Net sales
$

106,436

$

83,064

Cost of sales

46,826

34,710

Gross profit

59,610

48,354

Selling, general, and administrative expenses

36,421

29,084

Operating income

23,189

19,270

Interest expense, net

4,414

3,479

Investment gain

(291

)

(119

)

Loss on extinguishment of debt

1,235

–

Income from continuing operations before income taxes

17,831

15,910

Income tax expense

2,040

3,729

Income from continuing operations

15,791

12,181

Loss from discontinued operations, net of tax

–

(2

)

Consolidated net income

15,791

12,179

Net income attributable to non-controlling interest

1,396

169

Net income attributable to Turning Point Brands, Inc.
$

14,395

$

12,010

Basic income per common share:

Continuing operations
$

0.81

$

0.68

Discontinued operations

–

–

Net income attributable to Turning Point Brands, Inc.
$

0.81

$

0.68

Diluted income per common share:

Continuing operations
$

0.79

$

0.63

Discontinued operations

–

–

Net income attributable to Turning Point Brands, Inc.
$

0.79

$

0.63

Weighted average common shares outstanding:

Basic

17,795,243

17,654,684

Diluted

18,249,306

20,170,314

Turning Point Brands, Inc.

Consolidated Balance Sheets

(dollars in thousands except share data)

(unaudited)

March 31, December 31,

ASSETS

2025

2024

Current assets:

Cash
$

99,640

$

46,158

Accounts receivable, net of allowances of $75 in 2025 and $66 in 2024

14,861

9,624

Inventories, net

104,440

96,253

Current assets held for sale

–

11,470

Other current assets

40,072

34,700

Total current assets

259,013

198,205

Property, plant, and equipment, net

27,659

26,337

Deferred tax assets, net

–

995

Right of use assets

10,788

11,610

Deferred financing costs, net

1,662

1,823

Goodwill

135,780

135,932

Other intangible assets, net

64,939

65,254

Master Settlement Agreement (MSA) escrow deposits

29,317

28,676

Noncurrent assets held for sale

–

3,859

Other assets

35,394

20,662

Total assets
$

564,552

$

493,353

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable
$

27,007

$

11,675

Accrued liabilities

31,596

31,096

Current liabilities held for sale

–

2,049

Total current liabilities

58,603

44,820

Deferred tax liabilities, net

885

–

Notes payable and long-term debt

293,062

248,604

Lease liabilities

8,565

9,549

Total liabilities
$

361,115

$

302,973

Commitments and contingencies

Stockholders’ equity:

Preferred stock, $0.01 par value; authorized shares 40,000,000; issued and outstanding shares -0-

–

–

Common stock, voting, $0.01 par value; authorized shares, 190,000,000; 20,366,910 issued shares

and 17,895,505 outstanding shares at March 31, 2025, and 20,200,886 issued shares and

17,729,481 outstanding shares at December 31, 2024

204

202

Common stock, nonvoting, $0.01 par value; authorized shares, 10,000,000;

issued and outstanding shares -0-

–

–

Additional paid-in capital

124,811

126,662

Cost of repurchased common stock

(2,471,405 shares at March 31, 2025 and December 31, 2024)

(83,144

)

(83,144

)

Accumulated other comprehensive loss

(2,363

)

(2,903

)

Accumulated earnings

160,182

147,164

Non-controlling interest

3,747

2,399

Total stockholders’ equity

203,437

190,380

Total liabilities and stockholders’ equity
$

564,552

$

493,353

Turning Point Brands, Inc.

Consolidated Statements of Cash Flows

(dollars in thousands)

(unaudited)

Three Months Ended March 31,

2025

2024

Cash flows from operating activities:

Consolidated net income
$

15,791

$

12,179

Loss from discontinued operations, net of tax

–

2

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

Loss on extinguishment of debt

1,235

–

Loss on sale of property, plant, and equipment

40

1

Depreciation and other amortization expense

1,309

848

Amortization of other intangible assets

307

305

Amortization of deferred financing costs

448

696

Deferred income tax expense

1,716

114

Stock compensation expense

1,664

2,062

Noncash lease income

(380

)

(42

)

Loss on MSA investments

–

6

Changes in operating assets and liabilities:

Accounts receivable

(5,539

)

1,846

Inventories

(8,310

)

(7,488

)

Other current assets

(5,399

)

1,050

Other assets

(4,201

)

(270

)

Accounts payable

15,433

10,800

Accrued liabilities and other

512

(2,933

)

Operating cash flows from continuing operations

14,626

19,176

Operating cash flows from discontinued operations

–

3,463

Net cash provided by operating activities
$

14,626

$

22,639

Cash flows from investing activities:

Capital expenditures
$

(2,185

)

$

(366

)

Purchases of investments

(714

)

(7,119

)

Proceeds from sale of investments

500

–

Purchases of non-marketable equity investments

–

(500

)

MSA escrow deposits, net

(48

)

(1

)

Investing cash flows from continuing operations

(2,447

)

(7,986

)

Investing cash flows from discontinued operations

–

–

Net cash used in investing activities
$

(2,447

)

$

(7,986

)

Cash flows from financing activities:

Redemption of 2026 Notes
$

(250,000

)

$

–

Proceeds from 2032 Notes

300,000

–

Payment of dividends

(1,385

)

(1,149

)

Payment of financing costs

(6,582

)

–

Exercise of options

973

3

Redemption of options

(33

)

–

Redemption of restricted stock units

(1,828

)

(136

)

Redemption of performance based restricted stock units

(2,625

)

(1,212

)

Common stock repurchased

–

(2,079

)

Financing cash flows from continuing operations

38,520

(4,573

)

Financing cash flows from discontinued operations

–

–

Net cash provided by (used in) financing activities
$

38,520

$

(4,573

)

Net increase in cash
$

50,699

$

10,080

Effect of foreign currency translation on cash
$

(48

)

$

(58

)

Cash, beginning of period:

Unrestricted
$

48,941

$

117,886

Restricted

1,961

4,929

Total cash at beginning of period
$

50,902

$

122,815

Cash, end of period:

Unrestricted
$

99,640

$

130,903

Restricted

1,913

1,934

Total cash at end of period
$

101,553

$

132,837

Non-GAAP Financial Measures

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, we use non-U.S. GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income . We believe Adjusted EBITDA provides useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income are used by management to compare our performance to that of prior periods for trend analyses and planning purposes and are presented to our board of directors. We believe that EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income are appropriate measures of operating performance because they eliminate the impact of expenses that do not relate to business performance.

We define “EBITDA” as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization. We define “Adjusted EBITDA” as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization, other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define “Adjusted Net Income” as net income excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define “Adjusted Diluted EPS” as diluted earnings per share excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define “Adjusted Operating Income” as operating income excluding other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance.

Non-U.S. GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. EBITDA, Adjusted Net Income, Adjusted EBITDA, Adjusted Diluted EPS, and Adjusted Operating Income exclude significant expenses that are required by U.S. GAAP to be recorded in our financial statements and is subject to inherent limitations. In addition, other companies in our industry may calculate this non-U.S. GAAP measure differently than we do or may not calculate it at all, limiting its usefulness as a comparative measure.

In accordance with SEC rules, we have provided, in the supplemental information attached, a reconciliation of the non-GAAP measures to the next directly comparable GAAP measures.

Schedule A

Turning Point Brands, Inc.

Reconciliation of GAAP Net Income to Adjusted EBITDA

(dollars in thousands)

(unaudited)

Three Months Ended

March 31,

2025

2024

Net income attributable to Turning Point Brands, Inc.
$

14,395

$

12,010

Add:

Interest expense, net

4,401

3,479

Loss on extinguishment of debt

1,235

–

Income tax expense

2,040

3,729

Depreciation expense

828

741

Amortization expense

822

412

EBITDA
$

23,721

$

20,371

Components of Adjusted EBITDA

Corporate restructuring (a)

–

1,261

ERP/CRM (b)

211

138

Stock based compensation (c)

1,664

2,062

Transactional expenses and strategic initiatives (d)

176

30

FDA PMTA (e)

1,591

841

Mark-to-market loss on Canadian inter-company note (f)

315

–

Adjusted EBITDA
$

27,678

$

24,703

(a)
Represents costs associated with corporate restructuring, including severance and early retirement.

(b)
Represents cost associated with scoping and mobilization of new ERP and CRM systems and cost of duplicative ERP licenses.

(c)
Represents non-cash stock options, restricted stock, PRSUs, etc.

(d)
Represents the fees incurred for transaction expenses.

(e)
Represents costs associated with applications related to FDA premarket tobacco product application (“PMTA”). The PMTA regime requires the Company to submit an application to the FDA to receive marketing authorization to continue to sell certain of its product lines with continued sales permitted during the pendency of the applications. The application is a onetime resource-intensive process for each covered product line; however, due to the nature of the implementation process for those product lines already in the market, applications can take multiple years to complete rather than the typical one-time submission. The Company currently has only two product lines currently subject to the PMTA process, having utilized other regulatory pathway options available for our other product lines. The Company does not expect to submit additional PMTA applications for any new product lines after the submission for the remaining two are complete.

(f)
Represents a mark-to-market loss attributable to foreign exchange fluctuation.

Schedule B

Turning Point Brands

Reconciliation of GAAP Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS

(dollars in thousands except share data)

(unaudited) Three Months Ended Three Months Ended

March 31, 2025 March 31, 2024

Income from continuing operations before income taxes Income tax expense⁽ⁱ⁾ Net income attributable to non-controlling interest Net Income Diluted EPS Income from continuing operations before income taxes Income tax expense⁽ⁱ⁾ Loss from discontinued operations, net of tax ^(j) Net income attributable to non-controlling interest Net Income Diluted EPS

GAAP Net Income and Diluted EPS
$

17,831

$

2,040

$

1,396

$

14,395

$

0.79

$

15,910

$

3,729

$

2

$

169

$

12,010

$

0.63

Loss on discontinued operations (a)

–

–

–

–

–

–

–

(3

)

–

3

0.00

Loss on extinguishment of debt (b)

1,235

141

–

1,094

0.06

–

–

–

–

–

–

Corporate restructuring (c)

–

–

–

–

–

1,261

295

–

–

966

0.05

ERP/CRM (d)

211

24

–

187

0.01

138

32

–

–

106

0.01

Stock options, restricted stock, and incentives expense (e)

1,664

190

–

1,474

0.08

2,062

483

–

–

1,579

0.08

Transactional expenses and strategic initiatives (f)

176

20

–

156

0.01

30

7

–

–

23

0.00

FDA PMTA (g)

1,591

182

–

1,409

0.08

841

197

–

–

644

0.03

Mark-to-market loss on Canadian inter-company note (h)

315

36

–

279

0.02

–

–

Tax benefit (i)

–

2,329

–

(2,329

)

(0.13

)

–

(93

)

–

–

93

0.00

Adjusted Net Income and Adjusted Diluted EPS
$

23,023

$

4,963

$

1,396

$

16,664

$

0.91

$

20,242

$

4,650

$

(1

)

$

169

$

15,424

$

0.80

Totals may not foot due to rounding

(a)
Represents loss on discontinued operations.

(b)
Represents loss on extinguishment of debt as a result of the redemption of the 2026 Notes.

(c)
Represents costs associated with corporate restructuring, including severance and early retirement.

(d)
Represents cost associated with scoping and mobilization of new ERP and CRM systems and cost of duplicative ERP licenses.

(e)
Represents non-cash stock options, restricted stock, PRSUs, etc.

(f)
Represents the fees incurred for transaction expenses.

(g)
Represents costs associated with applications related to FDA premarket tobacco product application (“PMTA”). The PMTA regime requires the Company to submit an application to the FDA to receive marketing authorization to continue to sell certain of its product lines with continued sales permitted during the pendency of the applications. The application is a onetime resource-intensive process for each covered product line; however, due to the nature of the implementation process for those product lines already in the market, applications can take multiple years to complete rather than the typical one-time submission. The Company currently has only two product lines currently subject to the PMTA process, having utilized other regulatory pathway options available for our other product lines. The Company does not expect to submit additional PMTA applications for any new product lines after the submission for the remaining two are complete.

(h)
Represents adjustment from quarterly tax rate to quarterly projected tax rate of 21% in 2025 and 23% in 2024.

(i)
Income tax expense calculated using the effective tax rate for the quarter of 11.4% in 2025 and 23.4% in 2024.

(j)
Tax allocation for discontinued operations excluded from adjusted net income.

Schedule C

Turning Point Brands, Inc.

Reconciliation of GAAP Operating Income to Adjusted Operating Income

(dollars in thousands)

(unaudited)

Consolidated Zig-Zag Products Stoker’s Products

1st Quarter 1st Quarter 1st Quarter 1st Quarter 1st Quarter 1st Quarter

2025

2024

2025

2024

2025

2024

Net sales
$

106,436

$

83,064

$

47,265

$

46,697

$

59,171

$

36,367

Gross profit
$

59,610

$

48,354

$

25,565

$

27,539

$

34,045

$

20,815

Operating income
$

23,189

$

19,270

$

16,930

$

18,000

$

24,134

$

15,396

Adjustments:

Corporate restructuring

–

1,261

–

–

–

–

ERP/CRM

211

138

–

–

–

–

Transactional expenses and strategic initiatives

176

30

–

–

–

–

FDA PMTA

1,591

841

Mark-to-market loss on Canadian inter-company note

315

–

–

–

–

–

Adjusted operating income
$

25,482

$

21,540

$

16,930

$

18,000

$

24,134

$

15,396

View source version on businesswire.com: https://www.businesswire.com/news/home/20250507323451/en/

Investor Contacts

Turning Point Brands, Inc.

[email protected]

KEYWORDS: United States North America Kentucky

INDUSTRY KEYWORDS: Tobacco Retail

MEDIA:

Logo

Posts pagination

Previous page Page 1 … Page 12,625 Page 12,626 Page 12,627 … Page 45,225 Next page