Market Newsdesk

May 5, 2025 6:34 am

Zimmer Biomet Announces First Quarter 2025 Financial Results

PR Newswire

First quarter net sales of $1.909 billion increased 1.1% and 2.3% on a constant currency¹ basis
First quarter diluted earnings per share were $0.91; adjusted¹ diluted earnings per share were $1.81
Company updates full-year 2025 reported revenue guidance to include the Paragon 28 acquisition and currency expectations, and full-year 2025 adjusted¹ earnings per share guidance to include Paragon 28, currency and the impact from current tariff proposals

WARSAW, Ind.
, May 5, 2025 /PRNewswire/ — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) today reported financial results for the quarter ended March 31, 2025. The Company reported first quarter net sales of $1.909 billion, an increase of 1.1% over the prior year period, and an increase of 2.3% on a constant currency¹ basis. Net earnings for the first quarter were $182.0 million, or $361.1 million on an adjusted¹ basis.

Diluted earnings per share were $0.91 for the first quarter, and adjusted¹ diluted earnings per share were $1.81.


¹ Reconciliations of these measures to the corresponding U.S. generally accepted accounting principles measures are included in this press release.

“We are proud of our team’s continued execution and performance to start the year, as we delivered solid first quarter results and advanced our bold innovation agenda,” said Ivan Tornos, Zimmer Biomet’s President and Chief Executive Officer. “We’re excited about the momentum in U.S. Hips, fueled by our revamped portfolio inclusive of the Z1™ Triple-Taper Femoral Hip System, HAMMR^® Automated Hip Surgical Impactor System, as well as navigation capabilities, and believe the early enthusiasm from surgeons for our new Oxford^® Cementless Partial Knee positions us well to accelerate growth in the second half of the year. The recently completed acquisition of Paragon 28 is another bold step toward our innovation and diversification ambitions, expanding our S.E.T. business with leading technologies and a dedicated commercial channel in the high-growth foot and ankle segment.”

Recent Highlights

Completed the acquisition of Paragon 28, Inc.
, a leading medical device company focused exclusively on the foot and ankle orthopedic segment, further strengthening Zimmer Biomet’s position in this high-growth space.
Showcased a broad portfolio of innovations
at the 2025 American Academy of Orthopaedic Surgeons (AAOS) annual meeting, including a comprehensive hip portfolio anchored by the new Z1™ Triple-Taper Femoral Hip System, along with the latest technologies for knee and upper extremity reconstruction and key robotic solutions. In addition, Zimmer Biomet debuted ZBX™, its new Ambulatory Surgery Center (ASC) offering to surgeons and institutions looking to expand their orthopedic footprint.
Received U.S. Food and Drug Administration (FDA) 510(k) clearance of Persona^® Revision SoluTion™ Femur, a revision knee implant component offering an alternative for patients with sensitivities to certain metals. The product will be commercially available in the U.S. in Q3 2025.
Launched the You’ll Be Back Campaign
with Chief Movement Officer Arnold Schwarzenegger, providing millions of people living with joint pain with an online community that empowers them with resources to make informed choices about their mobility.
Announced upcoming changes to Zimmer Biomet’s Board of Directors, effective at the Company’s annual meeting of stockholders on May 29, 2025, including the retirement of Non-Executive Chairman Christopher Begley; the appointment of President and CEO Ivan Tornos as Chairman of the Board upon Mr. Begley’s retirement; and the naming of Michael Farrell as Lead Independent Director upon Mr. Begley’s retirement.
Appointed Jehanzeb Noor as Senior Vice President, Chief Strategy, Innovation and Business Development Officer, and Kristen Cardillo as Senior Vice President, Chief Communications Officer, to the Zimmer Biomet Executive Leadership Team.
Named one of the 2025 World’s Most Ethical Companies^® by Ethisphere.

Geographic and Product Category Sales

The following sales table provides results by geography and product category for the three-month period ended March 31, 2025, as well as the percentage change compared to the applicable prior year period, on both a reported basis and a constant currency basis.

NET SALES – THREE MONTHS ENDED MARCH 31, 2025
(in millions, unaudited)


						Constant
	Net					Currency
	Sales		% Change			% Change
Geographic Results
United States	$	1,113.6		1.3	%		1.3	%
International		795.5		0.7			3.7
Total	$	1,909.1		1.1	%		2.3	%
Product Categories
Knees
United States	$	459.0		0.2	%		0.2	%
International		333.9		1.2			4.2
Total		792.9		0.6			1.9
Hips
United States		264.3		3.7			3.7
International		231.5		(2.0)			1.0
Total		495.8		0.9			2.4
S.E.T. *		470.5		3.9			4.9
Technology & Data, Bone Cement and Surgical **		149.9		(4.7)			(3.5)
Total	$	1,909.1		1.1	%		2.3	%

* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic

** Historically referred to as “Other”

Amounts reported in millions are computed based on the actual amounts. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Percentages presented are calculated from the underlying unrounded amounts.

Financial Guidance

The Company is updating its full-year 2025 reported revenue guidance to include the Paragon 28, Inc. (“Paragon 28”) acquisition and currency expectations, and full-year 2025 adjusted earnings per share guidance to include Paragon 28, currency and the impact from current tariff proposals:

Projected Year Ending December 31, 2025
	Previous Guidance	Updated Guidance
2025 Reported Revenue Change	1.0% – 3.5%	5.7% – 8.2%
Foreign Currency Exchange Impact	(2.0)% – (1.5)%	0.0% – 0.5%
2025 Constant Currency Revenue Change	N/A	5.7% – 7.7%
2025 Organic Constant Currency Revenue Change⁽¹⁾	3.0% – 5.0%	3.0% – 5.0%
Adjusted Diluted EPS⁽²⁾	$8.15 – $8.35	$7.90 – $8.10


⁽¹⁾	Excludes the projected impact of the Paragon 28 acquisition. Reconciliation of this measure to the most directly comparable GAAP financial measure is included in this press release.
⁽²⁾	These measures are non-GAAP financial measures for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts. See “Forward-Looking Non-GAAP Financial Measures” below, which identifies the information that is unavailable without unreasonable efforts and provides additional information. It is probable that these forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures.

Conference Call

The Company will conduct its first quarter investor conference call today, May 5, 2025, at 8:30 a.m. ET. The audio webcast can be accessed via Zimmer Biomet’s Investor Relations website at https://investor.zimmerbiomet.com. It will be archived for replay following the conference call.

About the Company

Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.

With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation.

For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X / Twitter at www.x.com/zimmerbiomet.

Website Information

We routinely post important information for investors on our website, www.zimmerbiomet.com, in the “Investor Relations” section. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts.

The information contained on, or that may be accessed through, our website or any other website referenced herein is not incorporated by reference into, and is not a part of, this document.

Note on Non-GAAP Financial Measures

This press release and our commentary in our investor conference call today include non-GAAP financial measures that differ from financial measures calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP financial measures may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP.

Net sales change information for the three-month period ended March 31, 2025 is presented on a GAAP (reported) basis and on a constant currency basis. Projected net sales change information for the year ended December 31, 2025, is also presented on an organic constant currency basis. Constant currency percentage changes exclude the effects of foreign currency exchange rates. They are calculated by translating current and prior-period sales at the same predetermined exchange rate. The translated results are then used to determine year-over-year percentage increases or decreases. In addition to excluding the projected effects of foreign currency exchange rates, projected 2025 organic constant currency revenue change also excludes the projected impact on net sales from the April 2025 acquisition of Paragon 28.

Net earnings and diluted earnings per share for the three-month periods ended March 31, 2025 and 2024 are presented on a GAAP (reported) basis and on an adjusted basis. These adjusted financial measures exclude the effects of certain items, which are detailed in the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures presented later in the press release.

Free cash flow is an additional non-GAAP measure that is presented in this press release. Free cash flow is computed by deducting additions to instruments and other property, plant and equipment from net cash provided by operating activities.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release. This press release also contains supplemental reconciliations of additional non-GAAP financial measures that the Company presents in other contexts. These additional non-GAAP financial measures are computed from the most directly comparable GAAP financial measure as indicated in the applicable reconciliation.

Management uses non-GAAP financial measures internally to evaluate the performance of the business. Additionally, management believes these non-GAAP measures provide meaningful incremental information to investors to consider when evaluating the performance of the Company. Management believes these measures offer the ability to make period-to-period comparisons that are not impacted by certain items that can cause dramatic changes in reported income but that do not impact the fundamentals of our operations. The non-GAAP measures enable the evaluation of operating results and trend analysis by allowing a reader to better identify operating trends that may otherwise be masked or distorted by these types of items that are excluded from the non-GAAP measures. In addition, constant currency revenue, adjusted operating profit, adjusted diluted earnings per share and free cash flow are used as performance metrics in our incentive compensation programs.

Forward-Looking Non-GAAP Financial Measures

This press release and our commentary in our investor conference call today also include certain forward-looking non-GAAP financial measures for the year ending December 31, 2025. We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, we exclude the impact of certain charges related to initial compliance with the European Union Medical Device Regulation; restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; and certain legal and tax matters. We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable efforts. For example, the timing of certain transactions is difficult to predict because management’s plans may change. In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. It is probable that these forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding financial guidance, statements regarding macro pressures, including the impact of such pressures on our business, and any statements about our forecasts, expectations, plans, intentions, strategies or prospects. All statements other than statements of historical or current fact are, or may be deemed to be, forward-looking statements. Such statements are based upon the current beliefs, expectations and assumptions of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual outcomes and results to differ materially from the forward-looking statements. These risks, uncertainties and changes in circumstances include, but are not limited to: competition; pricing pressures; dependence on new product development, technological advances and innovation; changes in customer demand for our products and services caused by demographic changes, obsolescence, development of different therapies or other factors; our ability to attract, retain, develop and maintain adequate succession plans for the highly skilled employees, senior management, independent agents and distributors we need to support our business; shifts in the product category or regional sales mix of our products and services; the risks and uncertainties related to our ability to successfully execute our restructuring plans; control of costs and expenses; risks related to the ability to realize the anticipated benefits of the acquisition of Paragon 28, including the possibility that the expected benefits from the transaction will not be realized or will not be realized within the expected time period; the risk that the businesses of Paragon 28 will not be integrated successfully; disruption from the proposed transaction making it more difficult to maintain business and operational relationships, including with customers, vendors, service providers, independent sales representatives, agents or agencies; the effects of business disruptions affecting us, our suppliers, customers or payors, either alone or in combination with other risks on our business and operations; the risks and uncertainties related to our ability to successfully integrate the operations, products, employees and distributors of acquired companies; the effect of the potential disruption of management’s attention from ongoing business operations due to integration matters related to mergers and acquisitions; the effect of mergers and acquisitions on our relationships with customers, suppliers and lenders and on our operating results and businesses generally; unplanned delays, disruptions and expenses attributable to our enterprise resource planning and other system updates; the ability to form and implement alliances; dependence on a limited number of suppliers for key raw materials and other inputs and for outsourced activities; the risk of disruptions in the supply of materials and components used in manufacturing or sterilizing our products; breaches or failures of our (or of our business partners’ or other third parties’) information technology systems or products, including by cyberattack, unauthorized access or theft; the outcome of government investigations; the impact of healthcare reform and cost containment measures, including efforts sponsored by government agencies, legislative bodies, the private sector and healthcare purchasing organizations, through reductions in reimbursement levels, repayment demands and otherwise; the impact of substantial indebtedness on our ability to service our debt obligations and/or refinance amounts outstanding under our debt obligations at maturity on terms favorable to us, or at all; changes in tax obligations arising from examinations by tax authorities and from changes in tax laws in jurisdictions where we do business, including as a result of the “base erosion and profit shifting” project undertaken by the Organisation for Economic Co-operation and Development and otherwise; challenges to the tax-free nature of the ZimVie Inc. spinoff transaction and the subsequent liquidation of our retained interest in ZimVie Inc.; the risk of additional tax liability due to the recategorization of our independent agents and distributors to employees; changes in tariffs relating to imports to the U.S. and other countries; the risk that material impairment of the carrying value of our intangible assets, including goodwill, could negatively affect our operating results; changes in general domestic and international economic conditions, including interest rate and currency exchange rate fluctuations; changes in general industry and market conditions, including domestic and international growth, inflation and currency exchange rates; the domestic and international business impact of political, social and economic instability, tariffs, trade restrictions and embargoes, sanctions, wars, disputes and other conflicts, including on our ability to operate in, export from or collect accounts receivable in affected countries; challenges relating to changes in and compliance with governmental laws and regulations affecting our U.S. and international businesses, including regulations of the U.S. Food and Drug Administration (“FDA”) and other government regulators relating to medical products, healthcare fraud and abuse laws and data privacy and cybersecurity laws; the success of our quality and operational excellence initiatives; the ability to remediate matters identified in inspectional observations issued by the FDA and other regulators, while continuing to satisfy the demand for our products; product liability, intellectual property and commercial litigation losses; and the ability to obtain and maintain adequate intellectual property protection. A further list and description of these risks and uncertainties and other factors can be found in our Annual Report on Form 10-K for the year ended December 31, 2024, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and our subsequent filings with the Securities and Exchange Commission (SEC). Copies of these filings are available online at www.sec.gov, www.zimmerbiomet.com or on request from us. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers of this press release are cautioned not to rely on these forward-looking statements since there can be no assurance that these forward-looking statements will prove to be accurate. This cautionary note is applicable to all forward-looking statements contained in this press release.

Note:

Amounts reported in millions within this press release are computed based on the actual amounts. As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding. Certain columns and rows within tables may not add due to the use of rounded numbers. Percentages presented are calculated from the underlying unrounded amounts.

ZIMMER BIOMET HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
FOR THE THREE MONTHS ENDED MARCH 31, 2025 and 2024
(in millions, except per share amounts, unaudited)

	2025		2024
Net Sales	$	1,909.1	$	1,889.2
Cost of products sold, excluding intangible asset amortization		549.8		512.3
Intangible asset amortization		151.0		142.1
Research and development		110.6		107.9
Selling, general and administrative		758.8		736.2
Restructuring and other cost reduction initiatives		36.0		124.4
Acquisition, integration, divestiture and related		10.6		0.4
Operating expenses		1,616.8		1,623.3
Operating Profit		292.3		265.9
Other income (expense), net		2.9		(0.1)
Interest expense, net		(66.2)		(50.7)
Earnings before income taxes		229.0		215.1
Provision for income taxes		46.5		42.3
Net Earnings		182.6		172.8
Less: Net earnings attributable to noncontrolling interest		0.6		0.4
Net Earnings of Zimmer Biomet Holdings, Inc.	$	182.0	$	172.4

Earnings Per Common Share
Basic	$	0.92	$	0.84
Diluted	$	0.91	$	0.84
Weighted Average Common Shares Outstanding
Basic		198.9		205.2
Diluted		199.7		206.2

ZIMMER BIOMET HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, unaudited)

	March 31,		December 31,
	2025		2024
Assets
Cash and cash equivalents	$	1,384.5	$	525.5
Receivables, net		1,533.4		1,480.7
Inventories		2,244.2		2,235.3
Other current assets		428.2		430.1
Total current assets		5,590.2		4,671.5
Property, plant and equipment, net		2,064.9		2,048.8
Goodwill		8,988.6		8,951.1
Intangible assets, net		4,468.0		4,598.4
Other assets		1,072.1		1,095.5
Total Assets	$	22,183.9	$	21,365.3
Liabilities and Stockholders’ Equity
Current liabilities	$	1,695.0	$	1,587.9
Current portion of long-term debt		600.0		863.0
Other long-term liabilities		908.9		1,096.6
Long-term debt		6,576.3		5,341.6
Stockholders’ equity		12,403.8		12,476.2
Total Liabilities and Stockholders’ Equity	$	22,183.9	$	21,365.3

ZIMMER BIOMET HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2025 and 2024
(in millions, unaudited)

	2025		2024
Cash flows provided by (used in) operating activities
Net earnings	$	182.6	$	172.8
Depreciation and amortization		254.4		238.6
Share-based compensation		19.6		29.0
Changes in operating assets and liabilities, net of acquired assets and liabilities
Income taxes		(15.6)		(8.6)
Receivables		(18.8)		(22.7)
Inventories		(3.0)		(55.3)
Accounts payable and accrued liabilities		(36.4)		(119.4)
Other assets and liabilities		(0.1)		(6.4)
Net cash provided by operating activities		382.8		228.0
Cash flows provided by (used in) investing activities
Additions to instruments		(59.7)		(82.0)
Additions to other property, plant and equipment		(44.6)		(55.1)
Net investment hedge settlements		1.0		10.2
Acquisition of intangible assets		(2.4)		(43.3)
Other investing activities		(0.3)		(24.8)
Net cash used in investing activities		(106.0)		(195.0)
Cash flows provided by (used in) financing activities
Net payments on revolving facilities		–		70.0
Proceeds from senior notes		1,748.1		–
Redemption of senior notes		(863.0)		–
Dividends paid to stockholders		(47.8)		(49.4)
Proceeds from employee stock compensation plans		16.7		56.4
Business combination contingent consideration payments		(17.4)		(1.5)
Debt issuance costs		(16.1)		–
Deferred business combination payments		–		(1.5)
Repurchase of common stock		(229.8)		(113.6)
Other financing activities		(15.2)		(10.5)
Net cash provided by (used in) financing activities		575.4		(50.1)
Effect of exchange rates on cash and cash equivalents		7.0		(5.7)
Change in cash and cash equivalents		859.1		(22.7)
Cash and cash equivalents, beginning of year		525.5		415.8
Cash and cash equivalents, end of period	$	1,384.5	$	393.0

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF REPORTED NET SALES % CHANGE TO
CONSTANT CURRENCY % CHANGE
(unaudited)


	For the Three Months Ended
	March 31, 2025 vs. 2024
				Foreign			Constant
				Exchange			Currency
	% Change			Impact			% Change
Geographic Results
United States		1.3	%		–	%		1.3	%
International		0.7			(3.0)			3.7
Total		1.1	%		(1.2)	%		2.3	%
Product Categories
Knees
United States		0.2	%		–	%		0.2	%
International		1.2			(3.0)			4.2
Total		0.6			(1.3)			1.9
Hips
United States		3.7			–			3.7
International		(2.0)			(3.0)			1.0
Total		0.9			(1.5)			2.4
S.E.T.		3.9			(1.0)			4.9
Technology & Data, Bone Cement and Surgical		(4.7)			(1.2)			(3.5)
Total		1.1	%		(1.2)	%		2.3	%

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF PROJECTED FULL-YEAR 2025 REPORTED REVENUE CHANGE TO
ORGANIC CONSTANT CURRENCY REVENUE CHANGE
(unaudited)


	Projected
	Full-year 2025
Reported revenue change	5.7 – 8.2	%
Less: Foreign currency exchange impact	0.0 – 0.5
Less: Paragon 28	2.7
Organic constant currency revenue change	3.0 – 5.0	%

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF REPORTED TO ADJUSTED RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2025 and 2024
(in millions, except per share amounts, unaudited)


FOR THE THREE MONTHS ENDED MARCH 31, 2025
	Cost of products sold, excluding intangible asset amortization		Intangible asset amortization		Research and development		Restructuring and other cost reduction initiatives		Acquisition, integration, divestiture and related		Interest expense, net		Provision for income taxes		Net Earnings of Zimmer Biomet Holdings, Inc.		Diluted earnings per common share
As Reported	$	549.8	$	151.0	$	110.6	$	36.0	$	10.6	$	(66.2)	$	46.5	$	182.0	$	0.91
Inventory and manufacturing- related charges⁽¹⁾		(6.2)		–		–		–		–		–		2.1		4.1		0.02
Intangible asset amortization⁽²⁾		–		(151.0)		–		–		–		–		28.2		122.8		0.61
Restructuring and other cost reduction initiatives⁽³⁾		–		–		–		(36.0)		–		–		7.2		28.8		0.14
Acquisition, integration, divestiture and related⁽⁴⁾		–		–		–		–		(10.6)		–		1.9		8.7		0.04
European Union Medical Device Regulation⁽⁵⁾		–		–		(4.4)		–		–		–		0.9		3.5		0.02
Other charges⁽⁶⁾		–		–		–		–		–		4.8		2.7		2.1		0.01
Other certain tax adjustments⁽⁷⁾		–		–		–		–		–		–		(9.2)		9.2		0.05
As Adjusted	$	543.6	$	–	$	106.2	$	–	$	–	$	(61.4)	$	80.3	$	361.2	$	1.81

FOR THE THREE MONTHS ENDED MARCH 31, 2024
	Cost of products sold, excluding intangible asset amortization		Intangible asset amortization		Research and development		Selling, general and administrative		Restructuring and other cost reduction initiatives		Acquisition, integration, divestiture and related		Other income (expense), net		Provision for income taxes		Net Earnings of Zimmer Biomet Holdings, Inc.		Diluted earnings per common share
As Reported	$	512.3	$	142.1	$	107.9	$	736.2	$	124.4	$	0.4	$	(0.1)	$	42.3	$	172.4	$	0.84
Inventory and manufacturing- related charges⁽¹⁾		(1.1)		–		–		–		–		–		–		0.8		0.3		–
Intangible asset amortization⁽²⁾		–		(142.1)		–		–		–		–		–		27.8		114.3		0.55
Restructuring and other cost reduction initiatives⁽³⁾		–		–		–		–		(124.4)		–		–		27.8		96.6		0.47
Acquisition, integration, divestiture and related⁽⁴⁾		–		–		–		–		–		(0.4)		–		0.4		–		–
European Union Medical Device Regulation⁽⁵⁾		–		–		(5.7)		–		–		–		–		1.3		4.4		0.02
Other charges⁽⁶⁾		–		–		–		0.2		–		–		2.3		0.5		1.6		0.01
Other certain tax adjustments⁽⁷⁾		–		–		–		–		–		–		–		(10.0)		10.0		0.05
As Adjusted	$	511.2	$	–	$	102.2	$	736.4	$	–	$	–	$	2.1	$	90.9	$	399.7	$	1.94


⁽¹⁾	Inventory and manufacturing-related charges include excess and obsolete inventory charges on certain product lines we intend to discontinue, the acceleration of depreciation and fixed overhead costs expensed immediately related to a manufacturing plant shutdown, and other inventory and manufacturing-related charges or gains.

⁽²⁾	We exclude intangible asset amortization as well as deferred tax rate changes on our intangible assets from our non-GAAP financial measures because we internally assess our performance against our peers without this amortization. Due to various levels of acquisitions among our peers, intangible asset amortization can vary significantly from company to company.

⁽³⁾	In December 2019, 2021 and 2023, and in February 2025, we initiated global restructuring programs that included a reorganization of key businesses and an overall effort to reduce costs in order to accelerate decision-making, focus the organization on priorities to drive growth and, in the case of the December 2021 program, to prepare for the spinoff of ZimVie, Inc. (“ZimVie”). Restructuring and other cost reduction initiatives also include other cost reduction and optimization initiatives that have the goal of reducing costs across the organization. The costs include employee termination benefits; contract terminations for facilities and sales agents; and other charges, such as consulting fees, project management expenses, retention period salaries and benefits and relocation costs.

⁽⁴⁾	The acquisition, integration, divestiture and related gains and expenses we have excluded from our non-GAAP financial measures resulted from various acquisitions, post-separation costs we have incurred related to ZimVie and gains related to a transition services agreement for services we provide to ZimVie and a transition manufacturing and supply agreement for products we supply to ZimVie for a limited period.

⁽⁵⁾	The European Union Medical Device Regulation imposes significant additional premarket and postmarket requirements. The new regulations provided a transition period until May 2021 for previously-approved medical devices to meet the additional requirements. For certain devices, this transition period was extended until May 2024. A conditional extension of the transition period has been implemented until December 2027 and 2028 depending on the legacy medical device’s risk class. We are excluding from our non-GAAP financial measures the incremental costs incurred to establish initial compliance with the regulations related to our previously-approved medical devices. The incremental costs primarily relate to temporary personnel and third-party professionals necessary to supplement our internal resources.

⁽⁶⁾	We have incurred other various expenses from specific events or projects that we consider highly variable or that have a significant impact to our operating results that we have excluded from our non-GAAP measures. These include gains and losses from changes in fair value on our equity investments, among other various costs. In addition, in February 2025 we issued senior notes in order to have the necessary cash-on-hand to acquire Paragon 28 once regulatory approval was received. We have excluded from our non-GAAP financial measures the interest on this debt related to the principal amount of the estimated purchase price and acquisition-related costs.

⁽⁷⁾	Other certain tax adjustments are related to certain significant and discrete tax adjustments including intercompany transactions between jurisdictions, ongoing impacts of tax only amortization resulting from certain restructuring transactions and impacts of significant tax reform including Swiss reform.

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING
ACTIVITIES TO FREE CASH FLOW
FOR THE THREE MONTHS ENDED MARCH 31, 2025 and 2024
(in millions, unaudited)


	Three Months Ended March 31,
	2025		2024
Net cash provided by operating activities	$	382.8	$	228.0
Additions to instruments		(59.7)		(82.0)
Additions to other property, plant and equipment		(44.6)		(55.1)
Free cash flow	$	278.5	$	90.9

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF GROSS PROFIT & MARGIN
TO ADJUSTED GROSS PROFIT & MARGIN
FOR THE THREE MONTHS ENDED MARCH 31, 2025 and 2024
(in millions, unaudited)


	Three Months Ended March 31,
	2025			2024
Net Sales	$	1,909.1		$	1,889.2
Cost of products sold, excluding intangible asset amortization		549.8			512.3
Intangible asset amortization		151.0			142.1
Gross Profit	$	1,208.3		$	1,234.8

Inventory and manufacturing-related charges		6.2			1.1
Intangible asset amortization		151.0			142.1
Adjusted gross profit	$	1,365.5		$	1,378.0


Gross margin		63.3	%		65.4	%
Inventory and manufacturing-related charges		0.3			0.1
Intangible asset amortization		7.9			7.5
Adjusted gross margin		71.5	%		72.9	%

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF OPERATING PROFIT & MARGIN TO ADJUSTED OPERATING PROFIT & MARGIN
FOR THE THREE MONTHS ENDED MARCH 31, 2025 and 2024
(in millions, unaudited)


	Three Months Ended March 31,
	2025			2024
Operating profit	$	292.3		$	265.9
Inventory and manufacturing-related charges		6.2			1.1
Intangible asset amortization		151.0			142.1
Restructuring and other cost reduction initiatives		36.0			124.4
Acquisition, integration, divestiture and related		10.6			0.4
European Union Medical Device Regulation		4.4			5.7
Other charges		–			(0.2)
Adjusted operating profit	$	500.5		$	539.4


Operating profit margin		15.3	%		14.1	%
Inventory and manufacturing-related charges		0.3			0.1
Intangible asset amortization		7.9			7.5
Restructuring and other cost reduction initiatives		1.9			6.6
Acquisition, integration, divestiture and related		0.6			–
European Union Medical Device Regulation		0.2			0.3
Adjusted operating profit margin		26.2	%		28.6	%

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE
FOR THE THREE MONTHS ENDED MARCH 31, 2025 and 2024
(unaudited)


	Three Months Ended March 31,
	2025			2024
Effective tax rate		20.3	%		19.7	%
Tax effect of adjustments made to earnings before taxes⁽¹⁾		1.9			3.4
Other certain tax adjustments ⁽²⁾		(4.0)			(4.6)
Adjusted effective tax rate		18.2	%		18.5	%


⁽¹⁾ Includes inventory and manufacturing-related charges; intangible asset amortization; restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; litigation; European Union Medical Device Regulation; and other charges
⁽²⁾ Other certain tax adjustments are related to certain significant and discrete tax adjustments including intercompany transactions between jurisdictions, ongoing impacts of tax only amortization resulting from certain restructuring transactions, and impacts of significant tax reform including Swiss reform.

ZIMMER BIOMET HOLDINGS, INC.
RECONCILIATION OF DEBT TO NET DEBT
AS OF MARCH 31, 2025 and DECEMBER 31, 2024
(in millions, unaudited)


	March 31, 2025		December 31, 2024
Debt, both current and long-term	$	7,176.3	$	6,204.6
Cash and cash equivalents		(1,384.5)		(525.5)
Net debt	$	5,791.8	$	5,679.1

Media	Investors
Heather Zoumas-Lubeski	David DeMartino
(445) 248-0577	(646) 531-6115
[email protected]	[email protected]

	Zach Weiner
	(908) 591-6955
	[email protected]

View original content to download multimedia:https://www.prnewswire.com/news-releases/zimmer-biomet-announces-first-quarter-2025-financial-results-302445629.html

SOURCE Zimmer Biomet Holdings, Inc.

May 5, 2025 6:34 am

BioNTech Announces Appointment of Ramón Zapata to Management Board as Chief Financial Officer

Mainz, Germany, May 5, 2025 (GLOBE NEWSWIRE) – BioNTech SE (Nasdaq: BNTX, “BioNTech” or “the Company”) announced today that the Supervisory Board has appointed Ramón Zapata-Gomez to the Management Board as Chief Financial Officer (“CFO”) effective July 1, 2025. He will join BioNTech from Novartis AG’s global biomedical research organization where he has been serving as CFO since 2022. Ramón Zapata will succeed Jens Holstein, who, as previously planned and announced, will retire at the end of his term on June 30, 2025.

In his new role as CFO at BioNTech, Ramón Zapata will ensure the Company’s financial direction continues to align with BioNTech’s strategy to become a multi-product company in the oncology field. In preparation for BioNTech’s oncology product launches, he will be responsible for fostering and further optimizing a strong financial infrastructure and performance in key markets. He will continue to drive sustainable organizational excellence and global execution in financial reporting, accounting, tax and treasury, and purchasing with the aim of furthering cost-effective value generation.

“Ramón Zapata is an accomplished leader with deep finance expertise who will be taking over from Jens Holstein at an exciting phase. He has gained extensive experience within the international pharmaceutical industry with a focus on North America, Europe, and Latin America, and has a deep understanding of market and business dynamics, resource optimization, and high-performing teams,” said Helmut Jeggle, Chairman of the Supervisory Board. “We, the Supervisory and the Management Board, thank Jens Holstein for his financial leadership and contributions to BioNTech’s successful trajectory. He strengthened BioNTech’s global finance organization and processes and contributed to the Company’s financial stability while increasing operational efficiency. Today, the Company is uniquely positioned to continue its success story and transformation into a multi-product company.”

“It has been a privilege to be part of the development of BioNTech into one of the largest global biotechnology companies,” said Jens Holstein, CFO at BioNTech. “I would like to thank my colleagues on the Boards as well as my teams for their dedication and collaboration during this remarkable growth journey. For me personally, it is the right time to retire as CFO and focus on non-executive Board roles in the future.”

“I am looking forward to joining BioNTech and am eager to contribute to its ambitious vision of improving patients’ lives,” said Ramón Zapata, designated CFO at BioNTech. “Throughout my career, I have been driven by the goal of developing and providing access to innovative medicines for patients. As BioNTech focuses on its first oncology launches, while advancing its unique clinical pipeline with disruptive and synergistic potential, I look forward to working with the talented team at BioNTech and accelerating financial strategies that support the Company’s vision.”

Ramón Zapata is a seasoned global finance executive with more than 25 years of experience in the pharmaceutical and consumer goods industries. He has held leadership roles at leading global companies including Novartis AG, Sandoz AG, and Mondelēz International. Throughout his career, Ramón Zapata has led finance functions enabling seamless execution from drug discovery through commercialization, including overseeing M&A transactions and successful integrations as well as driving digital finance transformations. Prior to joining BioNTech, Ramón Zapata served as CFO of BioMedical Research at Novartis, where he was responsible for the overall leadership of the division’s finance strategy and operations.

Ramón Zapata holds dual citizenship of the United States and Mexico. He is a Certified Public Accountant (CPA) from Universidad Panamericana in Mexico City and holds an MBA degree from IPADE Business School in Mexico City and from IESE Business School in Barcelona, Spain.

About BioNTech

Biopharmaceutical New Technologies (BioNTech) is a global next generation immunotherapy company pioneering novel investigative therapies for cancer and other serious diseases. BioNTech exploits a wide array of computational discovery and therapeutic modalities with the intent of rapid development of novel biopharmaceuticals. Its diversified portfolio of oncology product candidates aiming to address the full continuum of cancer includes mRNA cancer immunotherapies, next-generation immunomodulators and targeted therapies such as antibody-drug conjugates (ADCs) and innovative chimeric antigen receptor (CAR) T cell therapies. Based on its deep expertise in mRNA development and in-house manufacturing capabilities, BioNTech and its collaborators are researching and developing multiple mRNA vaccine candidates for a range of infectious diseases alongside its diverse oncology pipeline. BioNTech has established a broad set of relationships with multiple global and specialized pharmaceutical collaborators, including Duality Biologics, Fosun Pharma, Genentech, a member of the Roche Group, Genevant, Genmab, MediLink, OncoC4, Pfizer and Regeneron.

For more information, please visit www.BioNTech.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including, but not be limited to, statements concerning: expected changes to BioNTech’s leadership and the potential benefits of BioNTech’s leadership hires; BioNTech’s research and development programs; BioNTech’s focus on building commercial capabilities for potential market launches; and BioNTech’s expectations regarding the timing of, ability to obtain and maintain regulatory approval of, and planned readiness for, such launches. In some cases, forward-looking statements can be identified by terminology such as “will,” “may,” “should,” “expects,” “intends,” “plans,” “aims,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. The forward-looking statements in this press release are neither promises nor guarantees, and you should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors, many of which are beyond BioNTech’s control and which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: discussions with regulatory agencies regarding timing and requirements for additional clinical trials; the ability to produce comparable clinical results in future clinical trials; competition related to BioNTech’s product candidates, including those with different mechanisms of action and different manufacturing and distribution constraints, on the basis of, among other things, efficacy, cost, convenience of storage and distribution, breadth of approved use, side-effect profile and durability of immune response; the timing of and BioNTech’s ability to obtain and maintain regulatory approval for BioNTech’s product candidates; BioNTech’s and its counterparties’ ability to manage and source necessary resources; BioNTech’s ability to identify research opportunities and discover and develop investigational medicines; the ability and willingness of BioNTech’s third-party collaborators to continue research and development activities relating to BioNTech’s development candidates and investigational medicines; BioNTech’s and its collaborators’ ability to commercialize and market its product candidates, if approved; BioNTech’s ability to manage its development and expansion; regulatory developments in the United States and other countries; BioNTech’s ability to effectively scale its production capabilities and manufacture its product candidates; and other factors not known to BioNTech at this time.

You should review the risks and uncertainties described under the heading “Risk Factors” in BioNTech’s Annual Report on Form 20-F for the period ended December 31, 2024, and in subsequent filings made by BioNTech with the SEC, which are available on the SEC’s website at www.sec.gov. Except as required by law, BioNTech disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release in the event of new information, future developments or otherwise. These forward-looking statements are based on BioNTech’s current expectations and speak only as of the date hereof.

CONTACTS

Media Relations

Jasmina Alatovic
[email protected]

Investor Relations

Michael Horowicz
[email protected]

May 5, 2025 6:34 am

Hyperscale Data Announces Preliminary $25 Million in Revenue for Q1 2025, Provides Full-Year Guidance of $115–$125 Million

Company Highlights Strategic Transition to Artificial Intelligence Data Centers and Reports Growth in Certain Business Units

LAS VEGAS, May 05, 2025 (GLOBE NEWSWIRE) — Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company (“Hyperscale Data” or the “Company”), today announced preliminary financial results for the first quarter of 2025, which ended March 31, 2025, with revenue surpassing $25 million. The Company also issued guidance for the full fiscal year 2025, projecting revenue between $115 million and $125 million. The Company notes year-over-year growth at its subsidiaries, Ault Global Real Estate Equities, Inc., Circle 8 Crane Services, LLC and TurnOnGreen, Inc.

In the first quarter, Hyperscale Data recognized a significant one-time gain of approximately $9.7 million due to the deconsolidation of Avalanche International, Corp. Additionally, the Company is continuing to transition its Michigan data center into a cutting-edge artificial intelligence (“AI”) data center, positioning itself at the forefront of AI infrastructure and service growth.

“2025 is off to a strong start with growth across several of our core businesses,” said William B. Horne, Chief Executive Officer of Hyperscale Data. “Our transition of the Michigan facility to an AI data center and partial divestment of non-core assets are key milestones as we position Hyperscale Data for long-term success.”

The Company’s strategic transition and focus on high-growth sectors are designed to ensure that Hyperscale Data is prepared to capture emerging opportunities and deliver sustained value to its stockholders. The Company encourages stockholders to read the About Hyperscale Data, Inc. section for information regarding the upcoming divestiture of certain Company assets.

For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data’s public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.

About Hyperscale Data, Inc.

Through its wholly owned subsidiary Sentinum, Inc., Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging AI ecosystems and other industries. Hyperscale Data’s other wholly owned subsidiary, Ault Capital Group, Inc. (“ACG”), is a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact.

Hyperscale Data expects to divest itself of ACG on or about December 31, 2025 (the “Divestiture”). Upon the occurrence of the Divestiture, the Company would solely be an owner and operator of data centers to support high-performance computing services, though it may at that time continue to mine Bitcoin. Until the Divestiture occurs, the Company will continue to provide, through ACG and its wholly and majority-owned subsidiaries and strategic investments, mission-critical products that support a diverse range of industries, including an AI software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, ACG is actively engaged in private credit and structured finance through a licensed lending subsidiary. Hyperscale Data’s headquarters are located at 11411 Southern Highlands Parkway, Suite 190, Las Vegas, NV 89141.

On December 23, 2024, the Company issued one million (1,000,000) shares of a newly designated Series F Exchangeable Preferred Stock (the “Series F Preferred Stock”) to all common stockholders and holders of the Series C Convertible Preferred Stock on an as-converted basis. The Divestiture will occur through the voluntary exchange of the Series F Preferred Stock for shares of Class A Common Stock and Class B Common Stock of ACG (collectively, the “ACG Shares”). The Company reminds its stockholders that only those holders of the Series F Preferred Stock who agree to surrender such shares, and do not properly withdraw such surrender, in the exchange offer through which the Divestiture will occur, will be entitled to receive the ACG Shares and consequently be stockholders of ACG upon the occurrence of the Divestiture.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.

Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company’s website at hyperscaledata.com.

Hyperscale Data Investor Contact:

[email protected]
or 1-888-753-2235

May 5, 2025 6:33 am

Freshpet, Inc. Reports First Quarter 2025 Financial Results

Delivers Approximately 18% Net Sales Growth

Strong Operating Performance on Input, Quality and Logistics Costs

Updates 2025 Outlook

BEDMINSTER, N.J., May 05, 2025 (GLOBE NEWSWIRE) — Freshpet, Inc. (“Freshpet” or the “Company”) (Nasdaq: FRPT) today reported financial results for its first quarter ended March 31, 2025.

First Quarter 2025 Financial Highlights Compared to Prior Year Period

Net sales of $263.2 million, an increase of 17.6%.
Net loss of $12.7 million, compared to the prior year period net income of $18.6 million.
Gross margin of 39.4%, consistent with the prior year period of 39.4%.
Adjusted Gross Margin of 45.7%, compared to the prior year period of 45.3%.¹
Adjusted EBITDA of $35.5 million, compared to the prior year period of $30.6 million.¹

“Despite the recent macro-economic headwinds, we believe Freshpet remains a structurally advantaged business with a long runway for growth in a category with long-term tailwinds. However, our growth year-to-date has not been as robust as we had anticipated so we are adapting our growth plans to the current economic challenges that our consumers are facing while continuing to drive the operational improvements that are essential to our long-term success,” commented Billy Cyr, Freshpet’s Chief Executive Officer. “Looking ahead, we believe it is prudent to adjust our 2025 outlook and plan as if the conditions we saw in the first quarter were to continue for the balance of the year. In doing so, we believe we are positioning Freshpet to weather the near-term economic headwinds and deliver long-term shareholder value while serving pets, people and the planet.”

First Quarter 2025

Net sales increased 17.6% to $263.2 million for the first quarter of 2025 compared to $223.8 million for the prior year period. The increase in net sales was primarily driven by volume gains of 14.9% and favorable price/mix of 2.7%.

Gross profit was $103.8 million for the first quarter of 2025, compared to $88.2 million for the prior year period. Gross profit as a percentage of net sales remained consistent at 39.4% for both periods, as the benefit from lower input costs and reduced quality costs was fully offset by reduced leverage on plant expenses. For the first quarter of 2025, Adjusted Gross Profit was $120.2 million, or 45.7% as a percentage of net sales, compared to $101.5 million, or 45.3% as a percentage of net sales, for the prior year period.¹

Selling, general and administrative expenses (“SG&A”) were $115.3 million for the first quarter of 2025 compared to $79.7 million for the prior year period. SG&A as a percentage of net sales increased by 820 basis points to 43.8% for the first quarter of 2025 compared to 35.6% for the prior year period, primarily due to increased media as a percentage of net sales, higher share-based compensation and non-recurring charges in the current period, including an accounts receivable write-off in connection with the liquidation of one of our pet specialty distributors, an accrual for legal obligations related to the ongoing litigation with Phillips, and termination costs due to a business change in our international go-to-market strategy, partially offset by reduced logistics as a percentage of net sales. Adjusted SG&A for the first quarter of 2025 was $84.7 million, or 32.2% as a percentage of net sales, compared to $70.9 million, or 31.7% as a percentage of net sales, for the prior year period.¹

¹	Adjusted Gross Margin, Adjusted Gross Profit, Adjusted SG&A and Adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Measures” for how the Company defines these measures and the financial tables that accompany this release for reconciliations of these measures to the closest comparable GAAP measures.

Net loss was $12.7 million for the first quarter of 2025 compared to net income of $18.6 million for the prior year period. The decrease in net income was due to increased SG&A, including increased media spend of $7.7 million and non-recurring charges of $16.9 million, partially offset by contributions from higher sales and reduced logistics costs as a percentage of net sales.

Adjusted EBITDA was $35.5 million for the first quarter of 2025 compared to $30.6 million for the prior year period.¹ The increase in Adjusted EBITDA was a result of increased Adjusted Gross Profit, partially offset by higher Adjusted SG&A.

Balance Sheet

As of March 31, 2025, the Company had cash and cash equivalents of $243.7 million with $395.7 million of debt outstanding, net of $6.8 million of unamortized debt issuance costs. For the quarter ended March 31, 2025, cash from operations was $4.8 million, a decrease of $0.6 million compared to the prior year period.

The Company will utilize its balance sheet to support its ongoing capital needs in connection with its long-term capacity plan.

Outlook

For full year 2025, the Company is updating its guidance and now expects the following:

Net sales in the range of $1.12 billion to $1.15 billion, an increase of 15% to 18% from 2024, compared to $1.18 billion to $1.21 billion, an increase of 21% to 24%, in the previous guidance;
Adjusted EBITDA in the range of $190 million to $210 million, compared to at least $210 million in the previous guidance; and
Capital expenditures of ~$225 million, compared to ~$250 million in the previous guidance.

The Company does not provide guidance for net (loss) income, the U.S. GAAP measure most directly comparable to Adjusted EBITDA, and similarly cannot provide a reconciliation between its forecasted Adjusted EBITDA and net (loss) income metrics without unreasonable effort due to the unavailability of reliable estimates for certain components of net (loss) income and the respective reconciliations, including the timing of and amount of costs of goods sold and selling, general and administrative expenses. These items are not within the Company’s control and may vary greatly between periods and could significantly impact future results.

Conference Call & Earnings Presentation Webcast Information

As previously announced, today, May 5, 2025, the Company will host a conference call beginning at 8:00 a.m. Eastern Time with members of its leadership team. The conference call webcast will be available live over the Internet through the “Investors” section of the Company’s website at www.freshpet.com. To participate on the live call, listeners in North America may dial (844) 512-2921 and international listeners may dial (412) 317-6671; the passcode is 13753287.

About Freshpet
Freshpet’s mission is to elevate the way we feed our pets with fresh food that nourishes all. Freshpet foods are blends of fresh meats, vegetables and fruits farmed locally and made at our Freshpet Kitchens. We thoughtfully prepare our foods using natural ingredients, cooking them in small batches at lower temperatures to preserve the natural goodness of the ingredients. Freshpet foods and treats are kept refrigerated from the moment they are made until they arrive at Freshpet Fridges in your local market.

Our foods are available in select grocery, mass, digital, pet specialty, and club retailers across the United States, Canada and Europe, as well as online in the U.S. From the care we take to source our ingredients and make our food, to the moment it reaches your home, our integrity, transparency and social responsibility are the way we like to run our business. To learn more, visit www.freshpet.com.

Connect with Freshpet:

https://www.facebook.com/Freshpet

https://x.com/Freshpet

http://instagram.com/Freshpet

http://pinterest.com/Freshpet

@freshpet

https://www.youtube.com/user/freshpet400

Forward Looking Statements

Certain statements in this release constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the expected impact to our growth plans of current macroeconomic dynamics, our ability to deliver long-term shareholder value and guidance with respect to 2025 net sales, Adjusted EBITDA and capital expenditures. These statements are based on management’s current opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results. While Freshpet believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect actual results. There are several risks and uncertainties which could cause actual results, performance, and achievements to differ materially from those stated or implied by the forward-looking statements described herein, including, most prominently, the risks discussed under the heading “Risk Factors” in the Company’s latest annual report on Form 10-K and its quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Such forward-looking statements are made only as of the date of this release. Freshpet undertakes no obligation to publicly update or revise any forward-looking statement because of new information, future events or otherwise, except as otherwise required by law. If we do update one or more forward-looking statements, no inference should be made that we will make additional updates with respect to those or other forward-looking statements.

Non-GAAP Financial Measures

Freshpet uses the following non-GAAP financial measures in its financial communications. These non-GAAP financial measures should be considered as supplements to the U.S. GAAP reported measures, should not be considered replacements for, or superior to, the U.S. GAAP measures and may not be comparable to similarly named measures used by other companies.

Adjusted Gross Profit
Adjusted Gross Profit as a percentage of net sales (Adjusted Gross Margin)
Adjusted SG&A Expenses
Adjusted SG&A Expenses as a percentage of net sales
EBITDA
Adjusted EBITDA
Adjusted EBITDA as a percentage of net sales (Adjusted EBITDA Margin)

Adjusted Gross Profit: Freshpet defines Adjusted Gross Profit as gross profit before depreciation expense, non-cash share-based compensation and loss on disposal of manufacturing equipment.

Adjusted SG&A Expenses: Freshpet defines Adjusted SG&A as SG&A expenses before depreciation and amortization expense, non-cash share-based compensation, loss on disposal of equipment, distributor transition costs, legal obligation and international business changes.

EBITDA and Adjusted EBITDA: EBITDA represents net (loss) income plus interest expense net of interest income, income tax expense and depreciation and amortization expense, and Adjusted EBITDA represents EBITDA less gain on equity investment, plus non-cash share-based compensation expense, loss on disposal of property, plant and equipment, distributor transition costs, legal obligation, and international business changes.

Management believes that the non-GAAP financial measures are meaningful to investors because they provide a view of the Company with respect to ongoing operating results. The non-GAAP financial measures are shown as supplemental disclosures in this release because they are widely used by the investment community for analysis and comparative evaluation. They also provide additional metrics to evaluate the Company’s operations and, when considered with both the Company’s GAAP results and the reconciliation to the most comparable U.S. GAAP measures, provide a more complete understanding of the Company’s business than could be obtained absent this disclosure. The non-GAAP measures are not and should not be considered an alternative to the most comparable U.S. GAAP measures or any other figure calculated in accordance with U.S. GAAP, or as an indicator of operating performance. The Company’s calculation of the non-GAAP financial measures may differ from methods used by other companies. Management believes that the non-GAAP measures are important to an understanding of the Company’s overall operating results in the periods presented. The non-GAAP financial measures are not recognized in accordance with U.S. GAAP and should not be viewed as an alternative to U.S. GAAP measures of performance.

FRESHPET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands, except per share data)

	March 31, 2025			December 31, 2024
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	243,732		$	268,633
Accounts receivable, net of allowance for doubtful accounts		62,654			68,419
Inventories, net		82,017			80,794
Prepaid expenses		13,922			16,026
Other current assets		3,067			3,126
Total Current Assets		405,392			436,998
Property, plant and equipment, net		1,082,203			1,065,869
Deposits on equipment		433			1,047
Operating lease right of use assets		3,057			3,366
Long-term investment in equity securities		33,446			33,446
Other assets		34,493			34,152
Total Assets	$	1,559,024		$	1,574,878
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable	$	42,763		$	39,164
Accrued expenses		36,290			56,263
Current operating lease liabilities		1,355			1,322
Current finance lease liabilities		2,166			2,120
Total Current Liabilities	$	82,574		$	98,869
Convertible senior notes		395,698			395,163
Long-term operating lease liabilities		1,863			2,213
Long-term finance lease liabilities		29,400			23,273
Total Liabilities	$	509,535		$	519,518
Commitments and contingencies		—			—
STOCKHOLDERS’ EQUITY:
Common stock — voting, $0.001 par value, 200,000 shares authorized, 48,788 issued and 48,774 outstanding on March 31, 2025, and 48,716 issued and 48,702 outstanding on December 31, 2024		49			49
Additional paid-in capital		1,344,775			1,338,160
Accumulated deficit		(294,503	)		(281,806	)
Accumulated other comprehensive loss		(576	)		(787	)
Treasury stock, at cost — 14 shares on March 31, 2025 and on December 31, 2024		(256	)		(256	)
Total Stockholders’ Equity		1,049,489			1,055,360
Total Liabilities and Stockholders’ Equity	$	1,559,024		$	1,574,878

FRESHPET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Unaudited in thousands, except per share data)

	For the Three Months Ended March 31,
	2025			2024
NET SALES	$	263,249		$	223,849
COST OF GOODS SOLD		159,461			135,691
GROSS PROFIT		103,788			88,158
SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES		115,285			79,695
(LOSS) INCOME FROM OPERATIONS		(11,497	)		8,463
OTHER (EXPENSES) INCOME:
Interest and Other Income, net		2,393			3,335
Interest Expense		(3,459	)		(3,060	)
Gain on Equity Investment		—			9,918
		(1,066	)		10,193
(LOSS) INCOME BEFORE INCOME TAXES		(12,563	)		18,656
INCOME TAX EXPENSE		134			54
(LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(12,697	)	$	18,602
OTHER COMPREHENSIVE INCOME (LOSS):
Change in foreign currency translation	$	211		$	(118	)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)		211			(118	)
TOTAL COMPREHENSIVE (LOSS) INCOME	$	(12,486	)	$	18,484
NET (LOSS) INCOME PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS
-BASIC	$	(0.26	)	$	0.38
-DILUTED	$	(0.26	)	$	0.37
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING
-BASIC		48,733			48,320
-DILUTED		48,733			50,049

FRESHPET, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited, in thousands)

	For the Three Months Ended March 31,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(12,697	)	$	18,602
Adjustments to reconcile net (loss) income to net cash flows provided by operating activities:
Provision for loss on accounts receivable		11,452			4
Loss on disposal of property, plant and equipment		744			150
Share-based compensation		8,816			6,221
Inventory obsolescence		—			699
Depreciation and amortization		21,827			15,902
Amortization of deferred financing costs		535			514
Change in operating lease right of use asset		309			379
Gain on equity investment		—			(9,918	)
Changes in operating assets and liabilities:
Accounts receivable		(5,609	)		(11,757	)
Inventories		(2,952	)		(7,817	)
Prepaid expenses and other current assets		688			548
Other assets		(1,102	)		(691	)
Accounts payable		4,574			9,909
Accrued expenses		(21,461	)		(16,943	)
Operating lease liability		(317	)		(396	)
Net cash flows provided by operating activities		4,807			5,406
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisitions of property, plant and equipment, software and deposits on equipment		(26,491	)		(46,473	)
Net cash flows used in investing activities		(26,491	)		(46,473	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Tax withholdings related to net shares settlements of restricted stock units		(2,861	)		(223	)
Principal payments under finance lease obligations		(513	)		(502	)
Proceeds from exercise of options to purchase common stock		157			2,815
Net cash flows (used in) provided by financing activities		(3,217	)		2,090
NET CHANGE IN CASH AND CASH EQUIVALENTS		(24,901	)		(38,977	)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR		268,633			296,871
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	243,732		$	257,894

FRESHPET, INC. AND SUBSIDIARIES RECONCILIATION BETWEEN GROSS PROFIT AND ADJUSTED GROSS PROFIT

	For the Three Months Ended March 31,
	2025			2024
	(Dollars in thousands)
Gross profit	$	103,788		$	88,158
Depreciation expense		15,179			10,675
Non-cash share-based compensation		1,283			2,622
(Loss) gain on disposal of manufacturing equipment		(5	)		21
Adjusted Gross Profit	$	120,245		$	101,476
Adjusted Gross Profit as a % of Net Sales		45.7	%		45.3	%

FRESHPET, INC. AND SUBSIDIARIES RECONCILIATION BETWEEN SG&A EXPENSES AND ADJUSTED SG&A EXPENSES

			For the Three Months Ended March 31,
			2025			2024
			(Dollars in thousands)
SG&A expenses			$	115,285		$	79,695
Depreciation and amortization expense				5,937			5,070
Non-cash share-based compensation (a)				7,533			3,600
Loss on disposal of equipment				166			129
Distributor transition costs (b)				10,680			—
Legal obligation (c)				4,987			—
International business charges (d)				1,273			—
Adjusted SG&A Expenses			$	84,709		$	70,896
Adjusted SG&A Expenses as a % of Net Sales				32.2	%		31.7	%

	(a)	Includes true-ups to share-based compensation expense in prior period. We have certain outstanding share-based awards with performance-based vesting conditions that require the achievement of certain Adjusted EBITDA margins, Adjusted EBITDA and/or Net Sales targets as a condition of vesting. At each reporting period, we reassess the probability of achieving the performance criteria and the performance period required to meet those targets. When the probability of achieving such performance conditions changes, the compensation cost previously recorded is adjusted as needed. When such performance conditions are deemed to be improbable of achievement, the compensation cost previously recorded is reversed.
	(b)	Represents a non-recurring loss as a result of an accounts receivable write-off in connection with the liquidation of one of our pet specialty distributors. Concurrent with its liquidation, we transitioned to a new distribution partner, who is a leading pet specialty distributor and who we anticipate will facilitate sales to pet specialty stores. Thus, despite the transitory impact during the first quarter of 2025, our ability to continue to generate sales is consistent with what we would expect to generate within the pet specialty channel.
	(c)	Represents an accrual for legal obligations related to the ongoing litigation with Phillips.
	(d)	Represents termination costs due to a business change in our international go-to-market strategy.

FRESHPET, INC. AND SUBSIDIARIES RECONCILIATION BETWEEN NET (LOSS) INCOME AND ADJUSTED EBITDA

			For the Three Months Ended March 31,
			2025			2024
			(Dollars in thousands)
Net (loss) income			$	(12,697	)	$	18,602
Depreciation and amortization				21,116			15,745
Interest expense, net of interest income				1,064			(275	)
Income tax expense				134			54
EBITDA				9,617			34,126
Non-cash share-based compensation (a)				8,816			6,221
Loss on disposal of property, plant and equipment				161			150
Distributor transition costs (b)				10,680			—
Legal obligation (c)				4,987			—
International business charges (d)				1,273			—
Gain on equity investment				—			(9,918	)
Adjusted EBITDA			$	35,534		$	30,579
Adjusted EBITDA as a % of Net Sales				13.5	%		13.7	%

	(a)	Includes true-ups to share-based compensation expense in prior period. We have certain outstanding share-based awards with performance-based vesting conditions that require the achievement of certain Adjusted EBITDA margins, Adjusted EBITDA and/or Net Sales targets as a condition of vesting. At each reporting period, we reassess the probability of achieving the performance criteria and the performance period required to meet those targets. When the probability of achieving such performance conditions changes, the compensation cost previously recorded is adjusted as needed. When such performance conditions are deemed to be improbable of achievement, the compensation cost previously recorded is reversed.
	(b)	Represents a non-recurring loss as a result of an accounts receivable write-off in connection with the liquidation of one of our pet specialty distributors. Concurrent with its liquidation, we transitioned to a new distribution partner, who is a leading pet specialty distributor and who we anticipate will facilitate sales to pet specialty stores. Thus, despite the transitory impact during the first quarter of 2025, our ability to continue to generate sales is consistent with what we would expect to generate within the pet specialty channel.
	(c)	Represents an accrual for legal obligations related to the ongoing litigation with Phillips.
	(d)	Represents termination costs due to a business change in our international go-to-market strategy.

Investor Contact:
Rachel Ulsh
[email protected]

Media Contact:
[email protected]

May 5, 2025 6:33 am

ImmunityBio Requests an Urgent Meeting With FDA to Address the Change in the Agency’s Unambiguous Guidance on Jan 2025 to Submit a sBLA for NMIBC BCG Unresponsive Papillary Disease, Following an Inconsistent Refusal to File Letter on May 2, 2025

ImmunityBio Requests an Urgent Meeting With FDA to Address the Change in the Agency’s Unambiguous Guidance on Jan 2025 to Submit a sBLA for NMIBC BCG Unresponsive Papillary Disease, Following an Inconsistent Refusal to File Letter on May 2, 2025

CULVER CITY, Calif.–(BUSINESS WIRE)–
ImmunityBio, Inc. (NASDAQ: IBRX), a leading immunotherapy company, today announced that the Company received a Refusal to File (RTF) letter from the U.S. Food and Drug Administration (FDA) for the supplemental biologics license application (sBLA) for use of ANKTIVA plus Bacillus Calmette-Guerin (BCG) in BCG-unresponsive non-muscle invasive bladder cancer (NMIBC) for the indication of papillary disease. This RTF letter was received despite reaching unanimous guidance and encouragement at the in-person January 2025 meeting from the leadership of the Agency, including from CBER, CDER and OCE to submit this sBLA. At this meeting all key decision makers were specifically asked and unanimously confirmed that ImmunityBio should submit the sBLA as soon as possible based on the data in the single-arm trial. Relying on this unanimous guidance the Company submitted the sBLA in March 2025. The Company has already requested an urgent meeting to resolve the inconsistencies between the directives provided at the January Meeting and receipt of the RTF letter.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250505409104/en/

Addressing High Risk BCG Unresponsive Bladder and Preventing Progression with Loss of Bladder

ANKTIVA was approved by the FDA in 2024 with BCG for the treatment of BCG unresponsive NMIBC with Papillary tumors with CIS (Cohort A). In the same clinical trial (QUILT-3.032) long term results of patients with Papillary tumors without CIS (Cohort B), was submitted as a sBLA. The RTF letter referenced herein does not impact this prior approval of CIS +/- Papillary in BCG unresponsive patients.

The Agency leaders present at the January meeting unambiguously invited the Company to expeditiously submit an sBLA for the NMIBC papillary indication based on the strength of the clinical response and long-term duration of follow-up data of the Papillary without CIS cohort of the QUILT 3.032 study. Data was also presented of the long term follow-up Phase 1 results which demonstrated Complete Response and Disease Free Survival in both CIS and Papillary disease, with patients in on-going cystectomy free state at 10 years. In addition disease-specific overall survival rate of 99% at 12 months and 96% at 36 months, in the BCG unresponsive patients with Papillary disease without CIS was discussed. To our knowledge, this is the most durable data to date in the Papillary setting for bladder preservation.

In March 2025, the Company completed its submission to the FDA of the sBLA for the use of ANKTIVA plus BCG in BCG-unresponsive NMIBC in the papillary indication. On May 2, 2025, and notwithstanding the FDA’s invitation to submit the sBLA articulated by its leadership at the January Meeting, the FDA delivered an RTF letter. The Company together with its consultants who attended the January 2025 meeting were shocked by this inconsistent response and have requested an urgent meeting with the Agency to resolve this issue.

“Our commitment to NMIBC patients in the papillary indication and our belief in ANKTIVA’s potential based on the strength of the clinical response and long duration of 5-year follow-up remains unchanged, despite our receipt of a refusal to file letter regarding our supplemental BLA,” said Dr. Patrick Soon-Shiong, the Company’s Founder, Executive Chairman and Global Chief Scientific and Medical Officer. “We are fully determined to work with the FDA as quickly as possible, including having already requested a Type A meeting, to explore the best path forward. We would also welcome an FDA Advisory Committee meeting as part of the regulatory process going forward. We presented our data at the recent 2025 American Urological Association (AUA) meeting and ANKTIVA+BCG was considered best in class and best in disease by the thought leaders in attendance, when compared to all the therapies currently approved or in development. Patients with BCG Unresponsive Papillary disease, face a life changing and life-threatening prospect of a total radical cystectomy, as well as the danger of the disease progressing from non-muscle invasive to muscle invasion with consequent progression and mortality. With the data presented of 99% disease specific survival at 12 months and over 82% patients not requiring bladder removal, it is essential that these patients be provided this treatment option, especially with the safety profile of ANKTIVA+BCG and the already approved indication of Papillary disease with CIS. The Company presented these data to the Agency in person in January and the Agency leaders present unanimously encouraged the company to expeditiously submit a supplemental BLA for this indication.”

Dr. Soon-Shiong further stated: “The Agency must explain the confounding inconsistency of approving ANKTIVA+BCG for patients with Papillary with CIS disease, while refusing to file the sBLA for patients with Papillary without CIS disease—even though both groups were part of the same trial, in the same high-risk population of BCG-unresponsive non-muscle invasive bladder cancer. In both cases, patients received the same surgical procedure for the Papillary component, the same therapy at the same dose, with the same excellent tolerability and meaningful clinical benefit: over 82% bladder-sparing and over 96% disease-specific survival at 36 months, as shown in Figure 1. On behalf of patients facing a potential loss of a vital organ and high risk of progression of disease, I urge the Agency to reconsider and act now.”

“I actively participated in the January 2025 meeting at which the leadership of the Agency present at that meeting unanimously supported and encouraged ImmunityBio to submit results from the single arm trial, QUILT 3.032 as a supplemental BLA because of the high-risk of progression and metastasis these patients with BCG unresponsiveness face. The consensus was reached by all present, including me, because of the lack of satisfactory alternatives in this desperately ill population at high-risk of losing their bladder – a life threatening and life changing procedure. Thus, I was startled to learn the ImmunityBio had received a ‘Refuse to File’ letter which is in my opinion rife with regulatory inaccuracies. I recommend that the company seek a rapid meeting with the Agency to resolve this issue and minimize the delay and threat to well-being of patients who could benefit significantly from avoiding a cystectomy,” said Dr. Rachel Sherman, former FDA Principal Deputy Commissioner, who pioneered single arm trials at the height of the HIV epidemic, and was responsible for developing the expedited pathways at the Agency to address life threatening and serious diseases on behalf of the American public during her 30 year career at the agency. “Furthermore, it is incomprehensible to me that the FDA refuses to file a supplemental BLA, stating the study is not sufficient to support a regulatory review, when it has already approved a product based on that very same study in essentially the same indication and population. As stated above, these patients are suffering from a disease with a high risk of morbidity and mortality in the very short term – no delay should be tolerated,” added Dr. Sherman.

About the QUILT-3.032 Study

QUILT-3.032 (NCT03022825) is a Phase II/III, open-label, single-arm, multicenter study of intravesical BCG plus ANKTIVA or ANKTIVA only in patients with BCG unresponsive high grade non-muscle invasive bladder cancer (NMIBC). All participants receive BCG plus ANKTIVA (Cohorts A and B) or ANKTIVA only (Cohort C) via a urinary catheter in the bladder for 6 consecutive weeks (initial induction treatment period). After the first disease assessment, eligible patients receive either a 3-week maintenance course or a 6-week re-induction course (second treatment period) at Month 3. Eligible patients will continue to receive maintenance treatment in the third treatment period at Months 6, 9, 12, and 18. Eligible patients have the option to receive maintenance treatment in the fourth treatment period at Months 24, 30, and 36. The study duration is 60 months.

Cohort A (N=100) includes patients with histologically confirmed BCG-unresponsive NMIBC CIS with or without papillary disease. The primary endpoint is biopsy-confirmed complete response (CR) rate at any time. Secondary endpoints include duration of CR, progression-free survival (PFS), time to cystectomy, safety and overall survival. FDA Approved this indication in 2024 in which eligibility included patients with Papillary disease.

Cohort B (N=80) enrolled participants with histologically confirmed BCG-unresponsive high-grade Papillary disease without CIS. The primary endpoint is a response of a disease-free rate at 12 months. Secondary endpoints include disease-free survival DFS and disease-specific survival, PFS, time to cystectomy, safety and overall survival.

About ANKTIVA®

The cytokine interleukin-15 (IL-15) plays a crucial role in the immune system by affecting the development, maintenance, and function of key immune cells—NK and CD8+ killer T cells—that are involved in killing cancer cells. By activating NK cells, ANKTIVA overcomes the tumor escape phase of clones resistant to T cells and restores memory T cell activity with resultant prolonged duration of complete response.

ANKTIVA is a first-in-class IL-15 receptor agonist IgG1 fusion complex, consisting of an IL-15 mutant (IL-15N72D) fused with an IL-15 receptor alpha, which binds with high affinity to IL-15 receptors on NK, CD4+, and CD8+ T cells. This fusion complex of ANKTIVA mimics the natural biological properties of the membrane-bound IL-15 receptor alpha, delivering IL-15 by dendritic cells and drives the activation and proliferation of NK cells with the generation of memory killer T cells that have retained immune memory against these tumor clones. The proliferation of the trifecta of these immune killing cells and the activation of trained immune memory results in immunogenic cell death, inducing a state of equilibrium with durable complete responses. ANKTIVA has improved pharmacokinetic properties, longer persistence in lymphoid tissues, and enhanced anti-tumor activity compared to native, non-complexed IL-15 in-vivo.

ANKTIVA was approved by the FDA in 2024 with BCG for the treatment of adult patients with BCG-unresponsive non-muscle invasive bladder cancer with CIS with or without papillary tumors. For more information, visit ImmunityBio.com (Founder’s Vision) and Anktiva.com.

About ImmunityBio

ImmunityBio is a vertically integrated biotechnology company developing next-generation therapies and vaccines that bolster the natural immune system to defeat cancers and infectious diseases. The Company’s range of immunotherapy and cell therapy platforms, alone and together, act to drive and sustain an immune response with the goal of creating durable and safe protection against disease. Designated an FDA Breakthrough Therapy, ANKTIVA is the first FDA-approved immunotherapy for non-muscle invasive bladder cancer CIS that activates natural killer cells, T cells, and memory T cells for a long-duration response. The Company is applying its science and platforms to treating cancers, including the development of potential cancer vaccines, as well as developing immunotherapies and cell therapies that we believe sharply reduce or eliminate the need for standard high-dose chemotherapy. These platforms and their associated product candidates are designed to be more effective, accessible, and easily administered than current standards of care in oncology and infectious diseases. For more information, visit ImmunityBio.com (Founder’s Vision) and connect with us on X (Twitter), Facebook, LinkedIn, and Instagram.

References:

https://pmc.ncbi.nlm.nih.gov/articles/PMC10813486/

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding discussions and meetings with the U.S. FDA, the company’s submission of the sBLA for use of ANKTIVA plus BCG in BCG-unresponsive NMIBC for the indication of papillary disease and potential results therefrom, the FDA’s delivery of a refusal to file letter regarding the aforementioned sBLA submission, potential next steps, decisions and timeline related and requirements thereof, potential Type A meeting with the FDA regarding the sBLA and timing thereof and results therefrom, potential Advisory Committee meeting with the FDA regarding the sBLA and timing thereof and results therefrom, clinical trial data and potential results to be drawn therefrom, the development of therapeutics for cancer and infectious diseases, potential benefits to patients, potential treatment outcomes for patients, the described mechanism of action and results and contributions therefrom, potential future uses and applications of ANKTIVA and use in cancer vaccines and across multiple tumor types, and ImmunityBio’s approved product and investigational agents as compared to existing treatment options, among others. Statements in this press release that are not statements of historical fact are considered forward-looking statements, which are usually identified by the use of words such as “anticipates,” “believes,” “continues,” “goal,” “could,” “estimates,” “scheduled,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “indicate,” “projects,” “is,” “seeks,” “should,” “will,” “strategy,” and variations of such words or similar expressions. Statements of past performance, efforts, or results of our preclinical and clinical trials, about which inferences or assumptions may be made, can also be forward-looking statements and are not indicative of future performance or results. Forward-looking statements are neither forecasts, promises nor guarantees, and are based on the current beliefs of ImmunityBio’s management as well as assumptions made by and information currently available to ImmunityBio. Such information may be limited or incomplete, and ImmunityBio’s statements should not be read to indicate that it has conducted a thorough inquiry into, or review of, all potentially available relevant information. Such statements reflect the current views of ImmunityBio with respect to future events and are subject to known and unknown risks, including business, regulatory, economic and competitive risks, uncertainties, contingencies and assumptions about ImmunityBio, including, without limitation, (i) risks and uncertainties regarding commercial launch execution, success and timing, (ii) risks and uncertainties regarding market access initiatives and timing, (iii) whether the FDA will accept the Company’s request for a Type A meeting and/or Advisory Committee Meeting, (iv) whether the FDA will permit the resubmission of the sBLA and the requirements thereof, (v) uncertainties regarding the timeline of the FDA’s review of these submissions even if accepted for review and filing, (vi) whether the FDA will ultimately approve the sBLA, or other submissions in a timely matter, or at all, of which there can be no assurance, (vii) risks and uncertainties regarding limited resources at the FDA and potential delays associated therewith, (viii) whether clinical trials will result in registrational pathways and the risks and uncertainties regarding the regulatory submission, filing, review and approval process, (ix) whether clinical trial data will be accepted by regulatory agencies, (x) the ability of ImmunityBio to continue its planned preclinical and clinical development of its development programs through itself and/or its investigators, and the timing and success of any such continued preclinical and clinical development, patient enrollment and planned regulatory submissions, (xi) potential delays in product availability and regulatory approvals, (xii) ImmunityBio’s ability to retain and hire key personnel, (xiii) ImmunityBio’s ability to obtain additional financing to fund its operations and complete the development and commercialization of its various product candidates, (xiv) potential product shortages or manufacturing disruptions that may impact the availability and timing of product, (xv) ImmunityBio’s ability to successfully commercialize its approved product and product candidates, (xvi) ImmunityBio’s ability to scale its manufacturing and commercial supply operations for its approved product and future approved products, and (xvii) ImmunityBio’s ability to obtain, maintain, protect, and enforce patent protection and other proprietary rights for its product candidates and technologies. More details about these and other risks that may impact ImmunityBio’s business are described under the heading “Risk Factors” in the Company’s Form 10-K filed with the U.S. Securities and Exchange Commission (SEC) on March 3, 2025, and in subsequent filings made by ImmunityBio with the SEC, which are available on the SEC’s website at www.sec.gov. ImmunityBio cautions you not to place undue reliance on any forward-looking statements, which speak only as of the date hereof. ImmunityBio does not undertake any duty to update any forward-looking statement or other information in this press release, except to the extent required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250505409104/en/

Media Contact:

Jen Hodson

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Oncology FDA Health Clinical Trials Pharmaceutical Biotechnology

MEDIA:

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Addressing High Risk BCG Unresponsive Bladder and Preventing Progression with Loss of Bladder

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May 5, 2025 6:33 am

Modivcare Announces Executive Leadership Transitions as Part of Strategic Business Model Evolution

Modivcare Announces Executive Leadership Transitions as Part of Strategic Business Model Evolution

DENVER–(BUSINESS WIRE)–
Modivcare Inc. (Nasdaq: MODV), a technology-enabled healthcare services company that provides supportive care solutions to address the social determinants of health, today announced the planned departures of two members of its executive leadership team as the company continues to align its structure with its evolving business model and modernization strategy.

Barb Gutierrez, Chief Financial Officer, and Jessica Kral, Chief Information Officer, will be departing the company following a period of transition. Barb’s and Jessica’s departures come as Modivcare evolves its organizational structure in an effort to support the next phase of its modernization strategy—built on the financial and technology foundations they helped establish during their time with the company.

“We are grateful to Barb and Jessica for their leadership, dedication, and contributions to Modivcare,” said Heath Sampson, Chief Executive Officer of Modivcare. “Barb played a critical role in strengthening our financial strategy and capital structure amidst ongoing macroeconomic uncertainty, while Jessica’s leadership has been instrumental in the continuing modernization of the technology infrastructure that serves as the backbone of our operations. Both Barb and Jessica leave behind strong teams and we believe their efforts will have a lasting impact on the company.”

As Modivcare strives to advance its cost reduction and technology-driven integration efforts, the company has determined that it will not be replacing the CFO or CIO roles at this time. The company is confident that the experienced and capable teams already in place under both functions are well-positioned to support the next phase of Modivcare’s growth and modernization strategy.

“These decisions are part of a broader, structural shift in how we operate,” added Sampson. “We are working to flatten the organization and unlock greater speed and accountability as we embed automation, intelligent systems, and financial discipline across the business. We thank Barb and Jessica for their service and wish them continued success in their future endeavors.”

Cautionary Statement Regarding Forward-Looking Statements

Statements contained in this announcement constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are predictive in nature and are identified generally by the use of the terms “intended”, “expected”, “will”, and “anticipates”, and similar words or expressions indicating possible future expectations, events or actions. Statements concerning the intentions of the Company concerning the proposed adjournment of the special meeting are forward-looking. Forward-looking statements are based on current expectations, assumptions, estimates and projections about the Company’s intentions, business and its industry, and are not guarantees of future performance. These statements are subject to a number of known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s ability to control or predict, which may cause actual events to be materially different from those expressed or implied herein. The Company has provided additional information about the risks facing its business and the Company in its most recent annual report on Form 10-K, and in its subsequent periodic and current reports on Forms 10-Q and 8-K, filed by it with the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made and are expressly qualified in their entirety by the cautionary statements set forth herein and in the periodic and current reports filed with the SEC identified above, which you should read in their entirety before making an investment decision with respect to the Company’s securities. The Company undertakes no obligation to update or revise any forward-looking statements contained in this report, whether as a result of new information, future events or otherwise, except as required by applicable law.

About Modivcare

Modivcare Inc. (Nasdaq: MODV) is a technology-enabled healthcare services company that provides a suite of integrated supportive care solutions for public and private payors and their members. Modivcare’s value-based solutions address the social determinants of health (SDoH) by connecting members to essential care services. By doing so, Modivcare helps health plans manage risks, reduce costs, and improve health outcomes. Modivcare serves as a provider of non-emergency medical transportation (NEMT), personal care services (PCS) and in-home monitoring solutions (Monitoring). To learn more about Modivcare, please visit www.modivcare.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250505161905/en/

Media

[email protected]

Investors

ICR Healthcare

[email protected]

KEYWORDS: United States North America Colorado

INDUSTRY KEYWORDS: Practice Management Professional Services Managed Care Other Health Health General Health Business Health Technology Health Insurance Hospitals Other Professional Services

MEDIA:

May 5, 2025 6:33 am

Integra LifeSciences Reports First Quarter 2025 Financial Results

PRINCETON, N.J., May 05, 2025 (GLOBE NEWSWIRE) — Integra LifeSciences Holdings Corporation (NASDAQ: IART), a leading global medical technology company, today reported financial results for the first quarter ending March 31, 2025.

First Quarter 2025 Highlights

First quarter revenues of $382.7 million increased 3.7% on a reported basis and decreased 3.5% on an organic basis compared to the prior year.
First quarter GAAP earnings per diluted share of $(0.33), compared to $(0.04) in the prior year; adjusted earnings per diluted share of $0.41, compared to $0.55 in the prior year.
Reaffirming full-year 2025 revenue guidance range and updating adjusted EPS guidance to account for the impact related to the new tariffs.

“We remain laser focused on strengthening our quality systems, improving supply reliability, and driving operational excellence. There remains significant work ahead, but we are continuing to put the processes and people in place to execute on our comprehensive Compliance Master Plan and build a foundation for sustainable performance. With the launch of our Transformation and Program Management Office and the addition of key leadership, including in global operations, we are driving improved accountability and execution across the enterprise to deliver meaningful long-term value for patients, customers, and shareholders,” said Mojdeh Poul, president and chief executive officer.

“As I reflect on my first quarter at Integra and continue spending time across our operations and with employees, I remain inspired by the deep commitment of our teams to our customers and patients. I am also encouraged by the positive feedback I consistently receive from customers about the impact of our solutions and the value of our portfolio. I’m equally optimistic about the long-term growth and earnings potential of our differentiated offerings.”

First Quarter 2025 Consolidated Performance

Total reported revenues of $382.7 million increased 3.7% on a reported basis and declined (3.5)% on an organic basis compared to the prior year.

The Company reported GAAP gross margin of 50.8%, compared to 56.1% in the first quarter of 2024. Adjusted gross margin was 62.2%, compared to 64.4% in the prior year.

Adjusted EBITDA for the first quarter of 2025 was $63.6 million, or 16.6% of revenue, compared to $71.8 million, or 19.5% of revenue, in the prior year.

The Company reported a GAAP net loss of $(25.3) million, or $(0.33) per diluted share, in the first quarter of 2025, compared to GAAP net loss of $(3.3) million, or $(0.04) per diluted share, in the prior year.

Adjusted net income for the first quarter of 2025 was $31.7 million, or $0.41 per diluted share, compared to $43.0 million, or $0.55 per diluted share, in the prior year.

First Quarter 2025 Segment Performance

Codman Specialty Surgical (
~70%
of Revenues)

Total revenues were $280.7 million, representing reported growth of 9.4% and an organic decline of 1.1% compared to the first quarter of 2024.

Sales in Neurosurgery declined 4.7% on an organic basis driven by shipping holds across several product lines
Sales in Instruments grew 15.1% on an organic basis due to strong demand and favorable prior year comparator
ENT reported revenue growth driven by the Acclarent acquisition

Tissue Technologies (
~30%
of Revenues)

Total revenues were $102.0 million, representing a reported decline of 9.3% and organic decline of 9.1% compared to the first quarter of 2024. Key drivers for the quarter include:

Low double-digit growth in DuraSorb®, MicroMatrix® and Cytal®
Low double-digit decline in Integra Skin due to production timing
Sales in private label were down 13.3% due to a component supply delay

Advancing our Priorities

Advancing the Compliance Master Plan and investments in supply reliability
Expansion of international portfolio
Integra Skin production pacing to normal revenue levels for the second quarter
Appointed Valerie Young as CVP, global operations and supply chain
Appointed Rick Maveus as SVP of the newly established Transformation and Program Management Office

Balance Sheet, Cash Flow and Capital Allocation

The Company generated cash flow from operations of ($11.3) million in the quarter. Total balance sheet debt and net debt at the end of the quarter were $1.85 billion and $1.58 billion, respectively, and the consolidated total leverage ratio was 4.3x.

As of the end of the quarter, the Company had total liquidity of approximately $1.16 billion, including $273 million in cash plus short-term investments and the remainder available under its revolving credit facility.

2025 Outlook

For the second quarter 2025, the Company expects reported revenues in the range of $390 million to $400 million, representing a reported decline of (6.8)% to (4.4)% and organic decline of (7.5)% to (5.1)%. The Company expects adjusted EPS in a range of $0.40 to $0.45 per share. Adjusted EPS guidance includes the Company’s estimate of $(0.04) per share to account for the impact of new tariffs.

For the full year 2025, the Company is reaffirming its revenue guidance ranges of $1.650 billion to $1.715 billion. The revenue range represents reported growth of 2.4% to 6.5% and organic growth of 0.4% to 4.4%. The Company is reducing its adjusted EPS guidance to a range of $2.19 to $2.29 per share. Adjusted EPS guidance includes the Company’s estimate of $(0.22) per share for the impact of new tariffs.

The Company’s organic sales growth guidance for the second quarter and the full year excludes acquisitions and divestitures, as well as the effects of foreign currency. The Acclarent acquisition will be included in organic growth beginning in the second quarter of 2025.

Conference Call and Presentation Available Online

Integra has scheduled a conference call for 8:30 a.m. ET on Monday, May 5, 2025, to discuss first quarter 2025 financial results and forward-looking financial guidance. The conference call will be hosted by Integra’s senior management team and will be open to all listeners. Additional forward-looking information may be discussed in a question-and-answer session following the call. Integra’s management team will reference a presentation during the conference call, which can be found on the Investor section of the website at investor.integralife.com.

A live webcast will be available on the Investors section of the Company’s website at investor.integralife.com. For those planning to participate on the call, register here to receive dial-in details and an individual pin. While not required, it is recommended to join 10 minutes prior to the event’s start. A webcast replay of the conference call will be available on the Investors section of the Company’s website following the call.

About Integra

At Integra LifeSciences, we are driven by our purpose of restoring patients’ lives. We innovate treatment pathways to advance patient outcomes and set new standards of surgical, neurologic, and regenerative care. We offer a comprehensive portfolio of high quality, leadership brands. For the latest news and information about Integra and its products, please visit www.integralife.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties and reflect the Company’s judgment as of the date of this release. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements. Some of these forward-looking statements may contain words like “will,” “believe,” “may,” “could,” “would,” “might,” “possible,” “should,” “expect,” “intend,” “forecast,” “guidance,” “plan,” “anticipate,” “target,” or “continue,” the negative of these words, other terms of similar meaning or they may use future dates. Forward-looking statements contained in this news release include, but are not limited to, statements concerning: future financial performance, including projections for revenues, expected revenue growth (both reported and organic), GAAP and adjusted net income, GAAP and adjusted earnings per diluted share, non-GAAP adjustments such as divestiture, acquisition and integration-related charges, intangible asset amortization, structural optimization charges, EU Medical Device Regulation-related charges, charges related to the voluntary global recall of all products manufactured at the Company’s facility in Boston, Massachusetts and the transition of Boston-related manufacturing operations to the Company’s Braintree, Massachusetts facility, and income tax expense (benefit) related to non-GAAP adjustments and other items; estimates regarding the projected impact of tariffs or other changes in trade policy on the Company’s business, financial condition and results of operations; and the Company’s expectations and plans with respect to business and operational performance, strategic initiatives, capabilities, resources, product development, product availability and regulatory approvals, including expectations regarding the efficacy of the Company’s compliance master plan to improve the Company’s quality systems. It is important to note that the Company’s goals and expectations are not predictions of actual performance. Such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from predicted or expected results. Such risks and uncertainties include, but are not limited, to the following: the ongoing and possible future effects of global challenges, including macroeconomic uncertainties, inflation, supply chain disruptions, trade regulation and tariffs, duties or other measures implemented by the U.S. or other countries, geopolitical conflicts, and U.S. and global recession concerns, on the Company’s customers and on the Company’s business, financial condition, results of operations and cash flows; the Company’s ability to execute its operating plan effectively; the Company’s ability to successfully integrate Acclarent and other acquired businesses; the Company’s ability to achieve sales growth in a timely fashion; the Company’s ability to manufacture and ship sufficient quantities of its products to meet its customers’ demands; the ability of third-party suppliers to supply us with raw materials and finished products; ; the Company’s ability to manage its direct sales channels effectively; the sales performance of third-party distributors on whom the Company relies to generate revenue for certain products and geographic regions; the Company’s ability to access and maintain relationships with customers of acquired entities and businesses; physicians’ willingness to adopt and third-party payors’ willingness to provide or maintain reimbursement for the Company’s recently launched, planned and existing products; initiatives launched by the Company’s competitors; downward pricing pressures from customers; the Company’s ability to secure regulatory approval for products in development; the Company’s ability to remediate quality systems violations; difficulties in implementing the Company’s compliance master plan and realizing the benefits contemplated thereby within the anticipated timeframe, or at all; difficulties or delays in obtaining and maintaining required regulatory approvals related to the transition of the manufacturing to the Company’s Braintree manufacturing facility; the possibility that costs or difficulties related to building and the operationalization of the Braintree facility or the transition of manufacturing activities from the Company’s Boston facility to the Braintree facility will be greater than expected; disruptions at the U.S. Food and Drug Administration (the “FDA”), including due to a reduction in the FDA’s workforce and/or inadequate funding for the FDA; fluctuations in hospitals’ spending for capital equipment; uncertainties inherent in the development of new products and the enhancement of existing products, including FDA approval and/or clearance and other regulatory risks, technical risks, cost overruns and delays; the Company’s ability to comply with regulations regarding products of human origin and products containing materials derived from animal source; difficulties in controlling expenses, including costs to procure and manufacture the Company’s products; the ability of the Company to successfully manage leadership and organizational changes and the impact of changes in management or staff levels; the impact of goodwill and intangible asset impairment charges if future operating results of acquired businesses are significantly less than the results anticipated at the time of the acquisitions, the Company’s ability to leverage its existing selling organizations and administrative infrastructure; the Company’s ability to increase product sales and gross margins, and control non-product costs; the Company’s ability to achieve anticipated growth rates, margins and scale and execute its strategy generally; the amount and timing of divestiture, acquisition and integration-related costs; the geographic distribution of where the Company generates its taxable income; new U.S. and foreign government laws and regulations, and changes in existing laws, regulations and enforcement guidance, which affect areas of our operations including, but not limited to, those affecting the health care industry, including the EU Medical Device Regulation; the scope, duration and effect of U.S. and international governmental, regulatory, fiscal, monetary and public health responses to any future public health crises; fluctuations in foreign currency exchange rates; the amount of our bank borrowings outstanding and other factors influencing liquidity; our ability to comply with the covenants under the agreements governing our indebtedness and the potential negative consequences caused by any non-compliance; potential negative impacts resulting from environmental, social and governance matters; and the economic, competitive, governmental, technological, and other risk factors and uncertainties identified under the heading “Risk Factors” included in Item 1A of Integra’s Annual Report on Form 10-K for the year ended December 31, 2024 and information contained in subsequent filings with the Securities and Exchange Commission.

These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise, except as otherwise required by law.

Discussion of Adjusted Financial Measures

In addition to our GAAP results, we provide certain non-GAAP measures, including organic revenues, adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted net income, adjusted gross margin, adjusted earnings per diluted share, and net debt.   Organic revenues consist of total revenues excluding the effects of currency exchange rates, revenues from current-period acquisitions and product divestitures. Adjusted EBITDA consists of GAAP net income excluding: (i) depreciation and amortization; (ii) other income (expense); (iii) interest income and expense; (iv) income tax expense (benefit); and (v) those operating expenses also excluded from adjusted net income.   The measure of adjusted net income consists of GAAP net income, excluding: (i) structural optimization charges; (ii) divestiture, acquisition and integration-related charges; (iii) EU Medical Device Regulation-related charges; (iv) charges related to the manufacturing stoppage and voluntary global recall of all products manufactured at the Company’s Boston, Massachusetts facility and distributed between March 1, 2018 and May 22, 2023, as previously disclosed in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on May 23, 2023 (the “recall”) and the transition of Boston-related manufacturing operations to the Company’s Braintree, Massachusetts facility; (v) intangible asset amortization expense; and (vi) income tax impact from adjustments.   The measure of adjusted gross margin is calculated by dividing adjusted gross profit by total revenues. Adjusted gross profit consists of GAAP gross profit adjusted for: (i) structural optimization charges; (ii) divestiture, acquisition and integration-related charges; (iii) charges related to the recall and the transition of Boston-related manufacturing operations to the Company’s Braintree, Massachusetts facility; (iv) EU Medical Device Regulation-related charges; and (v) intangible asset amortization expense. The adjusted earnings per diluted share measure is calculated by dividing adjusted net income attributable to diluted shares by diluted weighted average shares outstanding.    The measure of net debt consists of GAAP total debt (excluding deferred financing costs) less short-term investments, cash and cash equivalents.
Reconciliations of GAAP revenues to organic revenues,    GAAP net income to adjusted EBITDA, and adjusted net income, GAAP gross margin to adjusted gross margin,   GAAP total debt to net debt, and GAAP earnings per diluted share to adjusted earnings per diluted share all for the quarters ended March 31, 2025 and 2024.
The Company believes that the presentation of organic revenues and the other non-GAAP measures provide important supplemental information to management and investors regarding financial and business trends relating to the Company’s financial condition and results of operations.   For further information regarding why Integra believes that these non-GAAP financial measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the Company’s Current Report on Form 8-K regarding this earnings press release filed today with the Securities and Exchange Commission. This Current Report on Form 8-K is available on the SEC’s website at   www.sec.gov or on our website at www.integralife.com.

Investor Relations Contact
:

Chris Ward
(609) 772-7736
[email protected]

Media Contact:

Laurene Isip
(609) 208-8121
[email protected]



INTEGRA LIFESCIENCES HOLDINGS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In thousands, except per share amounts)

	Three Months Ended March 31,
		2025			2024
Total revenues, net	$	382,653		$	368,872

Costs and expenses:
Cost of goods sold		188,221			162,038
Research and development		24,728			26,965
Selling, general and administrative		181,497			165,798
Intangible asset amortization		3,704			10,107
Total costs and expenses		398,150			364,908

Operating income (loss)		(15,497	)		3,964

Interest income		4,420			5,040
Interest expense		(18,815	)		(13,624	)
Other expense, net		(144	)		(610	)
Loss before income taxes		(30,036	)		(5,230	)
Income tax (benefit)		(4,743	)		(1,949	)
Net Loss		(25,293	)	$	(3,281	)

Net income per share:
Diluted net loss per share	$	(0.33	)	$	(0.04	)

Weighted average common shares outstanding for diluted net income per share		76,463			77,735

The following table presents revenues disaggregated by the major sources for the three months ended March 31, 2025 and 2024 (amounts in thousands):

	Three Months Ended March 31,
		2025		2024		Change
Neurosurgery	$	190,912			202,268	(5.6	)%
Instruments⁽¹⁾		50,950			44,373	14.8	%
ENT⁽¹⁾		38,802			9,793	296.2	%
Total Codman Specialty Surgical		280,664			256,434	9.4	%

Wound Reconstruction and Care		74,779			80,877	(7.5	)%
Private Label		27,210			31,561	(13.8	)%
Total Tissue Technologies		101,989			112,438	(9.3	)%
Total reported revenues	$	382,653		$	368,872	3.7	%

Impact of changes in currency exchange rates		2,236			—
Less contribution of revenues from acquisitions		(29,092	)		—
Total organic revenues⁽²⁾	$	355,798		$	368,872	(3.5	)%

(1) Prior period revenues included within our instruments business have been reclassified under the ENT business.
(2) Organic revenues have been adjusted to exclude foreign currency (current period), acquisitions and to account for divested and discontinued products.

Items included in GAAP net income and location where each item is recorded are as follows:

(In thousands)

Three Months Ended March 31, 2025

Item	Total Amount		COGS(a)	SG&A(b)	R&D(c)		Amort (d)	OI&E(e)	Tax(f)
Acquisition, divestiture and integration-related charges	6,224		671	5,824	(736	)	—	464	—
Structural Optimization charges	10,663		4,276	6,436	(50	)	—	—	—
EU Medical Device Regulation charges	10,944		1,375	4,807	4,761		—	—	—
Boston Recall/Braintree Transition	14,810		14,386	424	—		—	—	—
Intangible asset amortization expense	26,473		22,769	—	—		3,704	—	—
Estimated income tax impact from above adjustments and other items	(12,167	)	—	—	—		—	—	(12,167	)
Depreciation expense	10,456		—	—	—		—	—	—

a) COGS – Cost of goods sold
b) SG&A – Selling, general and administrative
c) R&D – Research & development
d) Amort. – Intangible asset amortization
e) OI&E – Other income & expense
f) Tax – Income tax expense (benefit)

Items included in GAAP net income and location where each item is recorded are as follows:

(In thousands)

Three Months Ended March 31, 2024

Item	Total Amount		COGS(a)	SG&A(b)	R&D(c)		Amort (d)	OI&E(e)		Tax(f)
Acquisition, divestiture and integration-related charges	4,723		50	4,802	(83	)	—	(46	)	—
Structural Optimization charges	4,440		3,320	1,118	2		—	—		—
EU Medical Device Regulation charges	12,023		1,441	4,657	5,925		—	—		—
Boston Recall/Braintree Transition	9,044		8,210	834	—		—	—		—
Intangible asset amortization expense	27,698		17,591	—	—		10,107	—		—
Estimated income tax impact from above adjustments and other items	(11,696	)	—	—	—		—	—		(11,696	)
Depreciation expense	9,899		—	—	—		—	—		—



RECONCILIATION OF NON-GAAP ADJUSTMENTS – GAAP NET INCOME TO ADJUSTED EBITDA (UNAUDITED)

(In thousands)

	Three Months Ended March 31,
		2025			2024

GAAP net loss	$	(25,293	)	$	(3,281	)
Non-GAAP adjustments:
Depreciation and intangible asset amortization expense		36,929			37,597
Other (income) expense, net		(320	)		656
Interest expense, net		14,394			8,584
Income tax expense		(4,743	)		(1,949	)
Structural optimization charges		10,663			4,440
EU Medical Device Regulation charges		10,944			12,023
Boston Recall/ Braintree transition		14,810			9,044
Acquisition, divestiture and integration-related charges		6,224			4,723
Total of non-GAAP adjustments		88,902			75,118

Adjusted EBITDA	$	63,609		$	71,837

RECONCILIATION OF NON-GAAP ADJUSTMENTS – GAAP NET INCOME TO MEASURES OF ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE (UNAUDITED)

(In thousands, except per share amounts)

	Three Months Ended March 31,
		2025			2024

GAAP net loss	$	(25,293	)	$	(3,281	)
Non-GAAP adjustments:
Structural optimization charges		10,663			4,440
Acquisition, divestiture and integration-related charges		6,224			4,723
EU Medical Device Regulation charges		10,944			12,023
Boston Recall/Braintree Transition		14,810			9,044
Intangible asset amortization expense		26,473			27,698
Estimated income tax impact from adjustments and other items		(12,167	)		(11,696	)
Total of non-GAAP adjustments		56,947			46,231
Adjusted net income	$	31,654		$	42,950

Adjusted diluted net income per share	$	0.41		$	0.55

Weighted average common shares outstanding for diluted net income per share		76,586			77,958



CONDENSED BALANCE SHEET DATA (UNAUDITED)

(In thousands)

	March 31, 2025		December 31, 2024

Short term investments	$	34,191	$	27,192
Cash and cash equivalents		239,104		246,375
Trade accounts receivable, net		252,446		272,370
Inventories, net		445,418		429,090

Current and long-term borrowing under senior credit facility		1,167,291		1,121,823
Borrowings under securitization facility		102,100		108,100
Convertible securities		573,899		573,170


Stockholders’ equity	$	1,524,139	$	1,545,280

CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED)

(In thousands)

	Three Months Ended March 31,
		2025			2024

Net cash (used) provided by operating activities	$	(11,257	)	$	15,756
Net cash used in investing activities		(35,920	)		(53,965	)
Net cash provided by (used by) by financing activities		35,377			358,676
Effect of exchange rate changes on cash and cash equivalents		4,529			(4,963	)

Net increase (decrease) in cash and cash equivalents	$	(7,271	)	$	315,504


RECONCILIATION OF NON-GAAP ADJUSTMENTS – GAAP OPERATING CASH FLOW TO MEASURES OF FREE CASH FLOW AND ADJUSTED FREE CASH FLOW CONVERSION (UNAUDITED)

(In thousands)

	Three Months Ended March 31,
		2025			2024
Net cash (used) provided by operating activities	$	(11,257	)	$	15,756


Purchases of property and equipment	$	(28,920	)	$	(15,465	)
Free cash flow		(40,177	)		291

Adjusted net income⁽¹⁾	$	31,654		$	42,950
Adjusted free cash flow conversion		(126.9	)%		0.7	%



	Twelve Months Ended March 31,
		2025			2024
Net cash provided by operating activities	$	102,368		$	129,552

Purchases of property and equipment		(117,872	)		(68,737	)
Free cash flow	$	(15,504	)	$	60,815

Adjusted net income⁽¹⁾	$	185,652		$	230,004
Adjusted free cash flow conversion		(8.4	)%		26.4	%

(1) Adjusted net income for quarters ended March 31, 2025 and 2024 are reconciled above. Adjusted net income for remaining quarters in the trailing twelve months calculation have been previously reconciled and are publicly available in the Quarterly Earnings Call Presentations on our website at investor.integralife.com under Events & Presentations.

The Company calculates adjusted free cash flow conversion by dividing its free cash flow by adjusted net income. The Company believes this measure is useful in evaluating the significance of the cash special charges in its adjusted earnings measures.



RECONCILIATION OF NON-GAAP ADJUSTMENTS – NET DEBT CALCULATION (UNAUDITED)

(In thousands)
	March 31, 2025			December 31, 2024
Short-term borrowings under senior credit facility		38,750			33,906
Long-term borrowings under senior credit facility		1,128,541			1,087,917
Borrowings under securitization facility		102,100			108,100
Convertible securities		573,899			573,170
Deferred financing costs netted in the above		4,436			5,475
Short term investments		(34,191	)		(27,192	)
Cash & Cash Equivalents		(239,104	)		(246,375	)
Net Debt	$	1,574,431		$	1,535,001

RECONCILIATION OF NON-GAAP ADJUSTMENTS – GAAP GROSS PROFIT TO MEASURES OF ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN (UNAUDITED)

(In thousands, except percentages)

	Three Months Ended March 31,
		2025			2024

Total revenues, net	$	382,653		$	368,872
Cost of goods sold		188,221			162,038
Reported Gross Profit		194,432			206,834
Structural optimization charges		4,276			3,320
Acquisition, divestiture and integration-related charges		671			50
Boston Recall/Braintree Transition		14,386			8,210
EU Medical Device Regulation		1,375			1,441
Intangible asset amortization expense		22,769			17,591
Adjusted Gross Profit	$	237,909		$	237,446
Total Revenues	$	382,653		$	368,872
Adjusted Gross Margin		62.2	%		64.4	%

May 5, 2025 6:33 am

Tony Ursano Joins Assured Guaranty’s Board of Directors

Tony Ursano Joins Assured Guaranty’s Board of Directors

HAMILTON, Bermuda–(BUSINESS WIRE)–
Assured Guaranty Ltd. (NYSE:AGO) (Assured Guaranty) announced that Antonio (Tony) Ursano, Jr. has been elected to Assured Guaranty’s Board of Directors (Board) on May 2, 2025, bringing the total number of Board members to 10. He will serve on the Environmental and Social Responsibility, Finance and Risk Oversight committees.

“Mr. Ursano brings extensive experience in the insurance industry and investment banking business to the Assured Guaranty Board,” said Board Chair Francisco L. Borges. “He is a welcome addition to our membership, and I look forward to gaining his insights and working with him.”

In 2021, Mr. Ursano founded and began serving as managing partner of Insurance Advisory Partners, LLC, an insurance advisory firm that provides merger, acquisition, capital raising, and other advisory services to the insurance industry. Prior to founding Insurance Advisory Partners, Mr. Ursano was the Group Chief Financial Officer of Hamilton Insurance Group Ltd., where he also served on its board of directors.

“Assured Guaranty has benefited from Tony Ursano’s advice since we went public in 2004, including most recently through the insurance advisory firm that he founded and where he is the managing partner,” said Dominic Frederico, President and CEO. “Because he knows our company, our business and our markets so well, he will start making impactful contributions on day one.”

Previously, Mr. Ursano was President of TigerRisk Partners and CEO and Founder of TigerRisk Capital Markets & Advisory, after having served as Head of Corporate Development for Willis Group and Founder and CEO of Willis Capital Markets & Advisory. Earlier, he served for 10 years as the Global Head of the Financial Institutions Group at Banc of America Securities, where he then became its Vice Chairman.

“I’m honored to be elected to Assured Guaranty’s Board,” said Mr. Ursano. “It’s a company I have worked alongside for years and seen the strength and resilience of its business model as it grew into the unquestioned leader in its industry. Its financial guaranty products fill significant needs in today’s volatile markets, and it has the capital, credit skills and committed people to expand into new markets and products.”

About Assured Guaranty Ltd.

Assured Guaranty Ltd. is a publicly traded (NYSE: AGO), Bermuda-based holding company. Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and non-U.S. public finance, infrastructure and structured finance markets. Assured Guaranty also participates in the asset management business through its ownership interest in Sound Point Capital Management, LP and certain of its investment management affiliates. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this press release reflect Assured Guaranty’s current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in this press release. These risks and uncertainties include, but are not limited to, difficulties executing Assured Guaranty’s business strategy and other risk factors identified in Assured Guaranty’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of May 5, 2025. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250505226752/en/

Robert Tucker

Senior Managing Director, Investor Relations and Corporate Communications

212-339-0861

[email protected]

Ashweeta Durani

Director, Corporate Communications

212-408-6042

[email protected]

KEYWORDS: Caribbean United States Bermuda North America New York

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May 5, 2025 6:33 am

FTAI Aviation Ltd. to Participate in the Barclays Americas Select Franchise Conference 2025

NEW YORK, May 05, 2025 (GLOBE NEWSWIRE) — FTAI Aviation Ltd. (NASDAQ:FTAI) (the “Company”) today announced that Joe Adams, Chief Executive Officer, will present at the Barclays Americas Select Franchise Conference 2025 at 10:15AM (ET) on Tuesday, May 6, 2025 in London.

As part of his presentation, Mr. Adams will discuss, among other items, the information in the below:

A detailed walkthrough of FTAI’s outlook on Adjusted Free Cashflow for 2025.
Expected uses of proceeds for excess cashflows generated throughout the year.
FTAI’s pivot to an asset-light business model following the launch of the Strategic Capital Initiative.

A supplemental presentation relating to the Company’s Adjusted Free Cashflow for 2025 has been posted to the Investor Relations section of the Company’s website and the webcast will be broadcast live at https://ir.ftaiaviation.com/.

For definitions and reconciliations of non-GAAP measures, please refer to the exhibit to this press release. 2025 Adjusted EBITDA guidance reflects the following assumptions: (i) an average of 100 modules per quarter produced at the Company’s Montréal facility in fiscal year 2025, (ii) net Aerospace margins in line with or better than those for fiscal year 2024, and (iii) 25 to 35 V2500 engine MRE transactions for fiscal year 2025.

About FTAI Aviation Ltd.

FTAI owns and maintains commercial jet engines with a focus on CFM56 and V2500 engines. FTAI’s propriety portfolio of products, including the Module Factory and a joint venture to manufacture engine PMA, enables it to provide cost savings and flexibility to our airline, lessor, and maintenance, repair, and operations customer base. Additionally, FTAI owns and leases jet aircraft which often facilitates the acquisition of engines at attractive prices. FTAI invests in aviation assets and aerospace products that generate strong and stable cash flows with the potential for earnings growth and asset appreciation.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements related to the Company’s 2025 Adjusted EBITDA guidance and related assumptions, 2025 target Adjusted Free Cash Flow, completion of the sales of the Seed Portfolio to SCI and investments and returns in SCI, ability to recycle $300 million of proceeds into attractive Leasing assets, and ability to execute on inventory strategy. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond the Company’s control. The Company can give no assurance that its expectations will be attained and such differences may be material. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on the Company’s website (www.ftaiaviation.com). In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or change in events, conditions, or circumstances on which any statement is based. This release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.

Contacts

Investors

Alan Andreini
Investor Relations
FTAI Aviation Ltd.
(646) 734-9414
[email protected]

Media

Tim Lynch / Aaron Palash / Kelly Sullivan
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

Exhibit – Non-GAAP Financial Statements

This press release includes information based on financial measures that are not recognized under U.S. generally accepted accounting principles (GAAP), such as Adjusted EBITDA and Adjusted Free Cash Flow. You should use non‐GAAP information in addition to, and not as an alternative to, financial information prepared in accordance with GAAP. Our non-GAAP measures may not be identical or comparable to measures with the same name presented by other companies. Reconciliations of forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures are not included in this press release because the most directly comparable GAAP financial measures are not available on a forward-looking basis without unreasonable effort.

Adjusted EBITDA is defined as net income (loss) attributable to shareholders, adjusted (a) to exclude the impact of provision for (benefit from) income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and preferred shares and capital lease obligations, changes in fair value of non-hedge derivative instruments, asset impairment charges, incentive allocations, depreciation and amortization expense, dividends on preferred shares and interest expense, internalization fee to affiliate, (b) to include the impact of our pro-rata share of Adjusted EBITDA from unconsolidated entities and (c) to exclude the impact of equity in earnings (losses) of unconsolidated entities and the non-controlling share of Adjusted EBITDA, if any.

Adjusted Free Cash Flow is defined as net operating and investing cashflows adjusted to exclude certain non-recurring expenses, extraordinary items, and other adjustments deemed necessary to present a more accurate reflection of the Company’s cash-generating ability.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b71a9094-6f2b-419a-8025-00497e5a3a91

May 5, 2025 6:33 am

Park Hotels & Resorts Inc. Reports First Quarter 2025 Results

Park Hotels & Resorts Inc. Reports First Quarter 2025 Results

TYSONS, Va.–(BUSINESS WIRE)–
Park Hotels & Resorts Inc. (“Park” or the “Company”) (NYSE: PK) today announced results for the first quarter ended March 31, 2025 and provided an operational update.

Selected Statistical and Financial Information

(unaudited, amounts in millions, except RevPAR, ADR, Total RevPAR and per share data)

	Three Months Ended March 31,
		2025			2024		Change⁽¹⁾
Comparable RevPAR	$	177.67		$	178.94		(0.7	)%
Comparable Occupancy		69.2	%		71.3	%	(2.1) % pts
Comparable ADR	$	256.62		$	250.75		2.3	%

Comparable Total RevPAR	$	297.30		$	295.67		0.5	%

Net (loss) income⁽²⁾	$	(57	)	$	29		(296.6	)%
Net (loss) income attributable to stockholders⁽²⁾	$	(57	)	$	28		(303.6	)%

Operating income	$	7		$	92		(92.6	)%
Operating income margin		1.1	%		14.5	%	(1,340) bps

Comparable Hotel Adjusted EBITDA⁽²⁾	$	151		$	169		(10.4	)%
Comparable Hotel Adjusted EBITDA margin⁽²⁾		24.9	%		27.7	%	(280) bps

Adjusted EBITDA⁽²⁾	$	144		$	162		(11.1	)%
Adjusted FFO attributable to stockholders	$	92		$	111		(17.1	)%

(Loss) earnings per share – Diluted⁽¹⁾⁽³⁾	$	(0.29	)	$	0.13		(323.1	)%
Adjusted FFO per share – Diluted⁽¹⁾⁽³⁾	$	0.46		$	0.52		(11.5	)%
Weighted average shares outstanding – Diluted⁽³⁾		201			211		(10	)

______________________________________________
⁽¹⁾		Amounts are calculated based on unrounded numbers.
⁽²⁾		In Q1 2024, Park recognized a $5 million benefit resulting from grant money received from the Massachusetts Growth Capital Corporation’s Hotel & Motel Relief Grant Program, and Park’s Hawaii hotels benefited from a state unemployment tax refund of approximately $4 million, impacting Comparable Hotel Adjusted EBITDA margin by approximately (160) bps.
⁽³⁾		Diluted loss per share for the three months ended March 31, 2025 was calculated based on weighted average shares of 200 million, which excludes shares that were anti-dilutive. For purposes of Diluted Adjusted FFO per share, weighted average shares were 201 million.

Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer, stated, “I am very encouraged by our first quarter results, with Comparable RevPAR remaining essentially flat despite a tough comparison to last year when our portfolio significantly outperformed in almost every market, which resulted in first quarter 2024 Comparable RevPAR growth of nearly 8% as compared to the same period in 2023. Our Bonnet Creek complex in Orlando and Casa Marina – Key West hotels continue to lead our portfolio following their transformative renovations, with first quarter RevPAR increasing 14% and 12%, respectively, while transient demand accelerated in several of our key urban markets, including Chicago and New York.

We remain laser-focused on executing our strategic priorities while navigating current macroeconomic uncertainty, including disposing of $300-$400 million of non-core assets this year and reallocating and reinvesting this capital in our iconic portfolio for projects such as the $100 million transformative renovation at the Royal Palm South Beach Miami scheduled to begin mid-May. During the first quarter, we also returned $95 million of capital back to our shareholders in the form of dividends and share repurchases and spent nearly $80 million on capital improvements. With liquidity of approximately $1.2 billion, we are committed to creating long-term shareholder value and believe we are well-positioned for long-term growth.”

Additional Highlights

Repurchased approximately 3.5 million shares of common stock for a total purchase price of $45 million at an average purchase price of $12.80 per share; and
In April 2025, paid its first quarter cash dividend of $0.25 per share to stockholders of record as of March 31, 2025 and declared its second quarter dividend of $0.25 per share to stockholders of record as of June 30, 2025 to be paid on July 15, 2025.

Operational Update

Results for Park’s Comparable hotels in each of the Company’s key markets and by hotel type are as follows:

(unaudited)			Comparable ADR						Comparable Occupancy						Comparable RevPAR
	Hotels	Rooms		1Q25		1Q24	Change⁽¹⁾		1Q25		1Q24		Change			1Q25		1Q24	Change⁽¹⁾
Hawaii	2	3,525	$	303.66	$	311.13	(2.4	)%	78.4	%	90.2	%	(11.8) %pts		$	237.92	$	280.53	(15.2	)%
Orlando	3	2,325		295.00		283.63	4.0		79.9		74.2		5.7			235.80		210.46	12.0
New York	1	1,878		269.13		254.83	5.6		70.6		74.8		(4.2	)		189.87		190.37	(0.3	)
New Orleans	1	1,622		260.85		227.65	14.6		69.0		75.0		(6.0	)		180.02		170.75	5.4
Boston	3	1,536		191.84		191.00	0.4		73.2		74.2		(1.0	)		140.52		141.85	(0.9	)
Southern California	5	1,773		199.32		199.19	0.1		75.2		74.6		0.6			149.84		148.65	0.8
Key West	2	461		687.05		671.01	2.4		88.8		84.1		4.7			610.36		564.62	8.1
Chicago	3	2,467		171.44		166.20	3.1		41.3		41.8		(0.5	)		70.84		69.45	2.0
Puerto Rico	1	652		341.93		347.89	(1.7	)	92.2		83.7		8.5			315.29		291.32	8.2
Washington, D.C.	2	1,085		199.92		181.36	10.2		68.9		66.9		2.0			137.80		121.32	13.6
Denver	1	613		166.01		170.58	(2.7	)	57.7		63.5		(5.8	)		95.77		108.28	(11.6	)
Miami	1	393		358.65		350.53	2.3		86.4		86.5		(0.1	)		309.76		303.19	2.2
Seattle	2	1,246		137.92		134.63	2.4		66.9		67.7		(0.8	)		92.25		91.14	1.2
San Francisco	2	660		316.09		313.07	1.0		69.7		65.2		4.5			220.17		203.85	8.0
Other	8	2,475		185.31		186.12	(0.4	)	58.1		61.8		(3.7	)		107.61		115.09	(6.5	)
All Markets	37	22,711	$	256.62	$	250.75	2.3	%	69.2	%	71.3	%	(2.1) % pts		$	177.67	$	178.94	(0.7	)%

			Comparable ADR						Comparable Occupancy						Comparable RevPAR
	Hotels	Rooms		1Q25		1Q24	Change⁽¹⁾		1Q25		1Q24		Change			1Q25		1Q24	Change⁽¹⁾
Resort	12	8,313	$	322.62	$	320.53	0.7	%	80.0	%	82.4	%	(2.4) % pts		$	257.97	$	264.06	(2.3	)%
Urban	13	8,963		228.90		218.11	4.9		60.7		62.9		(2.2	)		138.88		137.04	1.3
Airport	6	3,464		171.19		166.23	3.0		71.0		73.7		(2.7	)		121.55		122.60	(0.9	)
Suburban	6	1,971		190.75		185.12	3.0		59.8		59.6		0.2			114.10		110.27	3.5
All Types	37	22,711	$	256.62	$	250.75	2.3	%	69.2	%	71.3	%	(2.1) %pts		$	177.67	$	178.94	(0.7	)%

______________________________________________
⁽¹⁾		Calculated based on unrounded numbers.

Comparable RevPAR remained essentially flat year-over-year due to a challenging comparison to last year when Park’s portfolio outperformed in almost every market, which resulted in first quarter 2024 Comparable RevPAR growth of nearly 8% as compared to the same period in 2023. However, Park continued to see improvements in group demand at its resort and urban hotels, and compared to the first quarter of 2024, group revenues at the Hilton Waikoloa Village increased over 66% due to an increase in group events, while group revenues at the Signia by Hilton Orlando Bonnet Creek increased 8% following its recent transformative renovation. Group revenues at the Hilton New Orleans Riverside increased by nearly 10% compared to the first quarter of 2024 with significant demand from the Super Bowl that was held in February 2025, resulting in RevPAR growth of over 5%, and group revenues increased by nearly 22% at the Hilton Chicago compared to the first quarter of 2024 due to an increase in corporate demand, increasing RevPAR by 17%.

At the end of March 2025, Comparable Group Revenue Pace for 2025 increased over 1% as compared to what 2024 group bookings were at the end of March 2024 and 2025 average Comparable group rates are projected to exceed 2024 average Comparable group rates by 4% for the same time period.

Balance Sheet and Liquidity

Park’s current liquidity is approximately $1.2 billion, including $950 million of available capacity under the Company’s revolving credit facility (“Revolver”). In addition, as of March 31, 2025, Park’s Net Debt was approximately $3.8 billion, and the weighted average maturity of Park’s consolidated debt is 2.9 years.

Park had the following debt outstanding as of March 31, 2025:

(unaudited, dollars in millions)
Debt⁽¹⁾	Collateral	Interest Rate	Maturity Date	As of March 31, 2025
Fixed Rate Debt
Mortgage loan	Hilton Denver City Center	4.90%	September 2025⁽²⁾	$	52
Mortgage loan	Hyatt Regency Boston	4.25%	July 2026		124
Mortgage loan	Hilton Hawaiian Village Beach Resort	4.20%	November 2026		1,275
Mortgage loan	Hilton Santa Barbara Beachfront Resort	4.17%	December 2026		156
Mortgage loan	DoubleTree Hotel Ontario Airport	5.37%	May 2027		30
2028 Senior Notes	Unsecured	5.88%	October 2028		725
2029 Senior Notes	Unsecured	4.88%	May 2029		750
2030 Senior Notes	Unsecured	7.00%	February 2030		550
Finance lease obligations		7.04%	2025 to 2028		1
Total Fixed Rate Debt		5.11%⁽³⁾			3,663

Variable Rate Debt
Revolver⁽⁴⁾	Unsecured	SOFR + 2.00%⁽⁵⁾	December 2026		—
2024 Term Loan	Unsecured	SOFR + 1.95%⁽⁵⁾	May 2027		200
Total Variable Rate Debt		6.37%			200

Less: unamortized deferred financing costs and discount					(22	)
Total Debt⁽¹⁾⁽⁶⁾		5.18%⁽³⁾		$	3,841

______________________________________________
⁽¹⁾		Excludes the $725 million non-recourse CMBS Loan (“SF Mortgage Loan”) secured by the 1,921-room Hilton San Francisco Union Square and 1,024-room Parc 55 San Francisco – a Hilton Hotel (collectively, the “Hilton San Francisco Hotels”), which is included in debt associated with hotels in receivership in Park’s condensed consolidated balance sheets. In October 2023, the Hilton San Francisco Hotels were placed into court-ordered receivership, and thus, Park has no further economic interest in the operations of the hotels.
⁽²⁾		The loan matures in August 2042 but became callable by the lender in August 2022 with six months of notice. As of March 31, 2025, Park had not received notice from the lender.
⁽³⁾		Calculated on a weighted average basis.
⁽⁴⁾		As of May 5, 2025, Park has $950 million of available capacity under the Revolver with no outstanding letters of credit.
⁽⁵⁾		SOFR includes a credit spread adjustment of 0.1%.
⁽⁶⁾		Excludes $157 million of Park’s share of debt of its unconsolidated joint ventures.

Capital Investments

During the first quarter of 2025, Park spent nearly $80 million on capital improvements at its hotels and expects to incur approximately $310 million to $330 million in capital expenditures during 2025. During the first quarter of 2025, Park successfully completed nearly $75 million in guestroom renovations and room conversions that began in 2024 at two of its flagship properties in Hawaii – the Rainbow Tower at the Hilton Hawaiian Village Waikiki Beach Resort and the Palace Tower at the Hilton Waikoloa Village. Park is scheduled to begin the second phase of renovations at both properties in the third quarter of 2025, alongside the second phase of guestroom renovations at the Hilton New Orleans Riverside.

Additionally, the $100 million transformative renovation at the Royal Palm South Beach Miami, a Tribute Portfolio Resort, is expected to begin mid-May 2025 and will include a full renovation of all 393 guestrooms at the oceanfront hotel, along with the addition of 11 new guestrooms. The project is expected to generate a 15% to 20% return on investment. Hotel operations will be suspended throughout the renovation, with an expected reopening in May 2026, resulting in an anticipated $17 million of disruption to Hotel Adjusted EBITDA for 2025.

Recent and upcoming renovations and return on investment projects (“ROI”) include:

(dollars in millions)
Projects & Scope of Work	Start Date⁽¹⁾	Completion Date⁽¹⁾	Budget		Total Incurred as of March 31, 2025⁽²⁾
Royal Palm South Beach Miami, a Tribute Portfolio Resort
Full property renovation, including the renovation of 393 guestrooms and the addition of 11 guestrooms to increase the room count to 404	Q2 2025	Q2 2026	$	103	$	12
Hilton Hawaiian Village Waikiki Beach Resort
Phase 1: Renovation of 392 guestrooms and the addition of 12 guestrooms through the conversion of suites to increase room count at the Rainbow Tower to 808	Started in Q3 2024	Completed in February 2025	$	41	$	37
Phase 2: Renovation of 404 guestrooms and the addition of 14 guestrooms through the conversion of suites to increase room count at the Rainbow Tower to 822	Q3 2025	Q1 2026	$	42	$	8
Hilton Waikoloa Village
Phase 1:Renovation of 197 guestrooms and the addition of 6 guestrooms through the conversion of suites to increase room count at the Palace Tower to 406	Started in Q3 2024	Completed in January 2025	$	32	$	29
Phase 2:Renovation of 203 guestrooms and the addition of 8 guestrooms through the conversion of suites to increase room count at the Palace Tower to 414	Q3 2025	Q1 2026	$	36	$	4
Hilton New Orleans Riverside
Phase 1: Renovation of 250 guestrooms at the 1,167-room Main Tower	Started in Q3 2024	Completed in November 2024	$	16	$	15
Phase 2: Renovation of 428 guestrooms at the 1,167-room Main Tower	Q3 2025	Q4 2025	$	31	$	12

______________________________________________
⁽¹⁾		Start dates and completion dates are estimates unless noted.
⁽²⁾		Projects marked completed have trailing costs that have not yet been incurred.

Dividends

Park declared a first quarter 2025 cash dividend of $0.25 per share to stockholders of record as of March 31, 2025. The first quarter dividend was paid on April 15, 2025.

On April 25, 2025, Park declared a second quarter 2025 cash dividend of $0.25 per share to be paid on July 15, 2025 to stockholders of record as of June 30, 2025. The declared dividends translate to an annualized yield of approximately 10% based on Park’s closing stock price on May 1, 2025.

Full-Year 2025 Outlook

Park expects full-year 2025 operating results to be as follows:

(unaudited, dollars in millions, except per share amounts and RevPAR)

	Full-Year 2025 Outlook as of May 5, 2025						Full-Year 2025 Outlook as of February 19, 2025						Change at Midpoint
Metric	Low			High			Low			High			Change at Midpoint

Comparable RevPAR	$	185		$	191		$	187		$	192		$	(2	)
Comparable RevPAR change vs. 2024		(1.0	)%		2.0	%		0.0	%		3.0	%	(100) bps
Comparable RevPAR, excluding the Royal Palm South Beach Miami	$	186		$	192		$	188		$	194		$	(2	)
Comparable RevPAR change vs. 2024, excluding the Royal Palm South Beach Miami		0.0	%		3.0	%		1.0	%		4.0	%	(100) bps

Net (loss) income	$	(8	)	$	52		$	87		$	147		$	(95	)
Net (loss) income attributable to stockholders	$	(16	)	$	44		$	79		$	139		$	(95	)
(Loss) earnings per share – Diluted⁽¹⁾	$	(0.08	)	$	0.22		$	0.39		$	0.69		$	(0.47	)
Operating income	$	243		$	304		$	338		$	398		$	(95	)
Operating income margin		9.5	%		11.5	%		13.0	%		14.9	%	(350) bps

Adjusted EBITDA	$	590		$	650		$	610		$	670		$	(20	)
Comparable Hotel Adjusted EBITDA margin⁽¹⁾		25.6	%		27.2	%		26.1	%		27.7	%	(50) bps
Comparable Hotel Adjusted EBITDA margin change vs. 2024⁽¹⁾	(190) bps			(30) bps			(140) bps			20 bps			(50) bps
Adjusted FFO per share – Diluted⁽¹⁾	$	1.79		$	2.09		$	1.90		$	2.20		$	(0.11	)

______________________________________________
⁽¹⁾		Amounts are calculated based on unrounded numbers.

Park’s outlook is based in part on the following assumptions:

Except where noted, includes the impact of renovations at the Royal Palm South Beach Miami, a Tribute Portfolio Resort, of approximately $17 million of Hotel Adjusted EBITDA and 40 bps of Comparable Hotel Adjusted EBITDA margin;
Adjusted FFO excludes $35 million of default interest and late payment administrative fees associated with default of the SF Mortgage Loan through July 15, 2025 (when the receivership is currently expected to end), which began in June 2023 and is required to be recognized in interest expense until legal titles to the Hilton San Francisco Hotels are transferred;
Fully diluted weighted average shares for the full-year 2025 of 200 million; and
Park’s portfolio as of May 5, 2025 and does not take into account potential future acquisitions, dispositions or any financing transactions, which could result in a material change to Park’s outlook.

Park’s full-year 2025 outlook is based on several factors, many of which are outside the Company’s control, including uncertainty surrounding macro-economic factors, such as inflation, changes in interest rates and the possibility of an economic recession or slowdown, as well as the assumptions set forth above, all of which are subject to change. Additionally, Park’s full-year 2025 outlook does not include assumptions around the incremental impact of tariff announcements (including any foreign tariffs announced in response to changes in U.S. trade policy), or changes in travel patterns to the United States as a result of tariff or trade policy, as the net effect of such announcements cannot be ascertained or quantified at this time.

Supplemental Disclosures

In conjunction with this release, Park has furnished a financial supplement with additional disclosures on its website. Visit www.pkhotelsandresorts.com for more information. Park has no obligation to update any of the information provided to conform to actual results or changes in Park’s portfolio, capital structure or future expectations.

Conference Call

Park will host a conference call for investors and other interested parties to discuss first quarter 2025 results on May 5, 2025 beginning at 10 a.m. Eastern Time. Participants may listen to the live webcast by logging onto the Investors section of the website at www.pkhotelsandresorts.com. Alternatively, participants may listen to the live call by dialing (877) 451-6152 in the United States or (201) 389-0879 internationally and requesting Park Hotels & Resorts’ First Quarter 2025 Earnings Conference Call. Participants are encouraged to dial into the call or link to the webcast at least ten minutes prior to the scheduled start time.

A replay of the webcast will be available within 24 hours after the live event on the Investors section of Park’s website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements related to the effects of Park’s decision to cease payments on its $725 million SF Mortgage Loan secured by the Hilton San Francisco Hotels and the lender’s exercise of its remedies, including placing such hotels into receivership, as well as Park’s current expectations regarding the performance of its business, financial results, liquidity and capital resources, including anticipated repayment of certain of Park’s indebtedness, the completion of capital allocation priorities, the expected repurchase of Park’s stock, the impact from macroeconomic factors (including elevated inflation and interest rates, potential economic slowdown or a recession and geopolitical conflicts), the effects of competition and the effects of future legislation, executive action or regulations, tariffs, the expected completion of anticipated dispositions, the declaration, payment and any change in amounts of future dividends and other non-historical statements. Forward-looking statements include all statements that are not historical facts, and in some cases, can be identified by the use of forward-looking terminology such as the words “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “hopes” or the negative version of these words or other comparable words. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Park’s control and which could materially affect its results of operations, financial condition, cash flows, performance or future achievements or events.

All such forward-looking statements are based on current expectations of management and therefore involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in these forward-looking statements. You should not put undue reliance on any forward-looking statements and Park urges investors to carefully review the disclosures Park makes concerning risk and uncertainties in Item 1A: “Risk Factors” in Park’s Annual Report on Form 10-K for the year ended December 31, 2024, as such factors may be updated from time to time in Park’s filings with the Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. Except as required by law, Park undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Measures

Park presents certain non-GAAP financial measures in this press release, including Nareit FFO attributable to stockholders, Adjusted FFO attributable to stockholders, FFO per share, Adjusted FFO per share, EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA, Hotel Adjusted EBITDA margin and Net Debt. These non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss) as a measure of its operating performance. Please see the schedules included in this press release including the “Definitions” section for additional information and reconciliations of such non-GAAP financial measures.

About Park

Park is one of the largest publicly-traded lodging real estate investment trusts (“REIT”) with a diverse portfolio of iconic and market-leading hotels and resorts with significant underlying real estate value. Park’s portfolio currently consists of 40 premium-branded hotels and resorts with approximately 25,000 rooms primarily located in prime city center and resort locations. Visit www.pkhotelsandresorts.com for more information.

PARK HOTELS & RESORTS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share and per share data)

	March 31, 2025			December 31, 2024
	(unaudited)
ASSETS
Property and equipment, net	$	7,317		$	7,398
Contract asset		836			820
Intangibles, net		41			41
Cash and cash equivalents		233			402
Restricted cash		27			38
Accounts receivable, net of allowance for doubtful accounts of $3 and $4		125			131
Prepaid expenses		66			69
Other assets		70			71
Operating lease right-of-use assets		186			191
TOTAL ASSETS (variable interest entities – $208 and $223)	$	8,901		$	9,161
LIABILITIES AND EQUITY
Liabilities
Debt	$	3,841		$	3,841
Debt associated with hotels in receivership		725			725
Accrued interest associated with hotels in receivership		111			95
Accounts payable and accrued expenses		212			226
Dividends payable		54			138
Due to hotel managers		110			138
Other liabilities		190			179
Operating lease liabilities		222			225
Total liabilities (variable interest entities – $200 and $201)		5,465			5,567
Stockholders’ Equity
Common stock, par value $0.01 per share, 6,000,000,000 shares authorized, 200,815,720 shares issued and 199,782,608 shares outstanding as of March 31, 2025 and 203,407,320 shares issued and 202,553,194 shares outstanding as of December 31, 2024		2			2
Additional paid-in capital		4,017			4,063
Accumulated deficit		(525	)		(420	)
Total stockholders’ equity		3,494			3,645
Noncontrolling interests		(58	)		(51	)
Total equity		3,436			3,594
TOTAL LIABILITIES AND EQUITY	$	8,901		$	9,161


PARK HOTELS & RESORTS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in millions, except per share data)

	Three Months Ended March 31,
		2025			2024
Revenues
Rooms	$	363		$	374
Food and beverage		182			182
Ancillary hotel		63			62
Other		22			21
Total revenues		630			639

Operating expenses
Rooms		100			102
Food and beverage		123			123
Other departmental and support		151			145
Other property		57			52
Management fees		30			30
Impairment and casualty loss		70			6
Depreciation and amortization		69			65
Corporate general and administrative		18			17
Other		21			21
Total expenses		639			561

Gain on derecognition of assets		16			14

Operating income		7			92

Interest income		3			5
Interest expense		(52	)		(53	)
Interest expense associated with hotels in receivership		(16	)		(14	)
Other gain, net		2			—

(Loss) income before income taxes		(56	)		30
Income tax expense		(1	)		(1	)
Net (loss) income		(57	)		29
Net income attributable to noncontrolling interests		—			(1	)
Net (loss) income attributable to stockholders	$	(57	)	$	28

(Loss) earnings per share:
(Loss) earnings per share – Basic	$	(0.29	)	$	0.13
(Loss) earnings per share – Diluted	$	(0.29	)	$	0.13

Weighted average shares outstanding – Basic		200			209
Weighted average shares outstanding – Diluted		200			211


PARK HOTELS & RESORTS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
EBITDA AND ADJUSTED EBITDA

(unaudited, in millions)	Three Months Ended March 31,
		2025			2024
Net (loss) income	$	(57	)	$	29
Depreciation and amortization expense		69			65
Interest income		(3	)		(5	)
Interest expense		52			53
Interest expense associated with hotels in receivership⁽¹⁾		16			14
Income tax expense		1			1
Interest income and expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates		2			3
EBITDA		80			160
Gain on derecognition of assets⁽¹⁾		(16	)		(14	)
Share-based compensation expense		4			4
Impairment and casualty loss		70			6
Other items		6			6
Adjusted EBITDA	$	144		$	162

______________________________________________
⁽¹⁾		For the three months ended March 31, 2025 and 2024, represents accrued interest expense associated with the default of the SF Mortgage Loan, which was offset by a gain on derecognition for the corresponding increase of the contract asset on the condensed consolidated balance sheets, as Park expects to be released from this obligation upon final resolution with the lender.


PARK HOTELS & RESORTS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
COMPARABLE HOTEL ADJUSTED EBITDA AND
COMPARABLE HOTEL ADJUSTED EBITDA MARGIN

(unaudited, dollars in millions)	Three Months Ended March 31,
		2025			2024
Adjusted EBITDA	$	144		$	162
Less: Adjusted EBITDA from investments in affiliates		(8	)		(8	)
Add: All other⁽¹⁾		15			15
Comparable Hotel Adjusted EBITDA	$	151		$	169

	Three Months Ended March 31,
		2025			2024
Total Revenues	$	630		$	639
Less: Other revenue		(22	)		(21	)
Less: Revenues from hotels disposed of		—			(8	)
Comparable Hotel Revenues	$	608		$	610

	Three Months Ended March 31,
		2025			2024		Change⁽²⁾
Total Revenues	$	630		$	639		(1.4	)%
Operating income	$	7		$	92		(92.6	)%
Operating income margin⁽²⁾		1.1	%		14.5	%	(1,340) bps

Comparable Hotel Revenues	$	608		$	610		(0.5	)%
Comparable Hotel Adjusted EBITDA	$	151		$	169		(10.4	)%
Comparable Hotel Adjusted EBITDA margin⁽²⁾		24.9	%		27.7	%	(280) bps

______________________________________________
⁽¹⁾		Includes other revenues and other expenses, non-income taxes on TRS leases included in other property expenses and corporate general and administrative expenses in the condensed consolidated statements of operations.
⁽²⁾		Percentages are calculated based on unrounded numbers.


PARK HOTELS & RESORTS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
NAREIT FFO AND ADJUSTED FFO

(unaudited, in millions, except per share data)

	Three Months Ended March 31,
		2025			2024
Net (loss) income attributable to stockholders	$	(57	)	$	28
Depreciation and amortization expense		69			65
Depreciation and amortization expense attributable to noncontrolling interests		(1	)		(1	)
Gain on derecognition of assets⁽¹⁾		(16	)		(14	)
Impairment loss		70			5
Pro rata FFO of investments in affiliates		1			1
Nareit FFO attributable to stockholders		66			84
Casualty loss		—			1
Share-based compensation expense		4			4
Interest expense associated with hotels in receivership⁽¹⁾		16			14
Other items		6			8
Adjusted FFO attributable to stockholders	$	92		$	111
Nareit FFO per share – Diluted⁽²⁾	$	0.33		$	0.40
Adjusted FFO per share – Diluted⁽²⁾	$	0.46		$	0.52
Weighted average shares outstanding – Diluted		201			211

______________________________________________
⁽¹⁾		For the three months ended March 31, 2025 and 2024, represents accrued interest expense associated with the default of the SF Mortgage Loan, which was offset by a gain on derecognition for the corresponding increase of the contract asset on the condensed consolidated balance sheets, as Park expects to be released from this obligation upon final resolution with the lender.
⁽²⁾		Per share amounts are calculated based on unrounded numbers.


PARK HOTELS & RESORTS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
NET DEBT

(unaudited, in millions)
	March 31, 2025
Debt	$	3,841
Add: unamortized deferred financing costs and discount		22
Debt, excluding unamortized deferred financing cost, premiums and discounts		3,863
Add: Park’s share of unconsolidated affiliates debt, excluding unamortized deferred financing costs		157
Less: cash and cash equivalents		(233	)
Less: restricted cash		(27	)
Net Debt	$	3,760


PARK HOTELS & RESORTS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
OUTLOOK – EBITDA, ADJUSTED EBITDA, COMPARABLE HOTEL ADJUSTED EBITDA
AND COMPARABLE HOTEL ADJUSTED EBITDA MARGIN

(unaudited, in millions)	Year Ending
	December 31, 2025
	Low Case			High Case
Net (loss) income	$	(8	)	$	52
Depreciation and amortization expense		272			272
Interest income		(8	)		(8	)
Interest expense		209			209
Interest expense associated with hotels in receivership		35			35
Income tax expense		14			14
Interest expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates		9			9
EBITDA		523			583
Gain on derecognition of assets		(35	)		(35	)
Share-based compensation expense		19			19
Impairment loss		70			70
Other items		13			13
Adjusted EBITDA		590			650
Less: Adjusted EBITDA from investments in affiliates		(18	)		(19	)
Add: All other		61			61
Comparable Hotel Adjusted EBITDA	$	633		$	692

	Year Ending
	December 31, 2025
	Low Case			High Case
Total Revenues	$	2,569		$	2,643
Less: Other revenue		(93	)		(93	)
Comparable Hotel Revenues	$	2,476		$	2,550

	Year Ending
	December 31, 2025
	Low Case			High Case
Total Revenues	$	2,569		$	2,643
Operating income	$	243		$	304
Operating income margin⁽¹⁾		9.5	%		11.5	%

Comparable Hotel Revenues	$	2,476		$	2,550
Comparable Hotel Adjusted EBITDA	$	633		$	692
Comparable Hotel Adjusted EBITDA margin⁽¹⁾		25.6	%		27.2	%

______________________________________________
⁽¹⁾		Percentages are calculated based on unrounded numbers.


PARK HOTELS & RESORTS INC.
NON-GAAP FINANCIAL MEASURES RECONCILIATIONS
OUTLOOK – NAREIT FFO ATTRIBUTABLE TO STOCKHOLDERS AND
ADJUSTED FFO ATTRIBUTABLE TO STOCKHOLDERS

(unaudited, in millions except per share data)	Year Ending
	December 31, 2025
	Low Case			High Case
Net (loss) income attributable to stockholders	$	(16	)	$	44
Depreciation and amortization expense		272			272
Depreciation and amortization expense attributable to noncontrolling interests		(3	)		(3	)
Gain on derecognition of assets		(35	)		(35	)
Impairment loss		70			70
Equity investment adjustments:
Equity in earnings from investments in affiliates		(1	)		(1	)
Pro rata FFO of equity investments		6			6
Nareit FFO attributable to stockholders		293			353
Share-based compensation expense		19			19
Interest expense associated with hotels in receivership		35			35
Other items		12			12
Adjusted FFO attributable to stockholders	$	359		$	419
Adjusted FFO per share – Diluted⁽¹⁾	$	1.79		$	2.09
Weighted average diluted shares outstanding		200			200

______________________________________________
⁽¹⁾		Per share amounts are calculated based on unrounded numbers.

PARK HOTELS & RESORTS INC.

DEFINITIONS

Comparable

The Company presents certain data for its consolidated hotels on a Comparable basis as supplemental information for investors: Comparable Hotel Revenues, Comparable RevPAR, Comparable Occupancy, Comparable ADR, Comparable Hotel Adjusted EBITDA and Comparable Hotel Adjusted EBITDA Margin. The Company presents Comparable hotel results to help the Company and its investors evaluate the ongoing operating performance of its hotels. The Company’s Comparable metrics include results from hotels that were active and operating in Park’s portfolio since January 1st of the previous year and property acquisitions as though such acquisitions occurred on the earliest period presented. Additionally, Comparable metrics exclude results from property dispositions that have occurred through May 5, 2025 and the Hilton San Francisco Hotels, which were placed into receivership at the end of October 2023.

EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin

Earnings before interest expense, taxes and depreciation and amortization (“EBITDA”), presented herein, reflects net income (loss) excluding depreciation and amortization, interest income, interest expense, income taxes and also interest income and expense, income tax and depreciation and amortization included in equity in earnings from investments in affiliates.

Adjusted EBITDA, presented herein, is calculated as EBITDA, as previously defined, further adjusted to exclude the following items that are not reflective of Park’s ongoing operating performance or incurred in the normal course of business, and thus, excluded from management’s analysis in making day-to-day operating decisions and evaluations of Park’s operating performance against other companies within its industry:

Gains or losses on sales of assets for both consolidated and unconsolidated investments;
Costs associated with hotel acquisitions or dispositions expensed during the period;
Severance expense;
Share-based compensation expense;
Impairment losses and casualty gains or losses; and
Other items that management believes are not representative of the Company’s current or future operating performance.

Hotel Adjusted EBITDA measures hotel-level results before debt service, depreciation and corporate expenses of the Company’s consolidated hotels, which excludes hotels owned by unconsolidated affiliates, and is a key measure of the Company’s profitability. The Company presents Hotel Adjusted EBITDA to help the Company and its investors evaluate the ongoing operating performance of the Company’s consolidated hotels.

Hotel Adjusted EBITDA margin is calculated as Hotel Adjusted EBITDA divided by total hotel revenue.

EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are not recognized terms under United States (“U.S.”) GAAP and should not be considered as alternatives to net income (loss) or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. In addition, the Company’s definitions of EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin may not be comparable to similarly titled measures of other companies.

The Company believes that EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin provide useful information to investors about the Company and its financial condition and results of operations for the following reasons: (i) EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are among the measures used by the Company’s management team to make day-to-day operating decisions and evaluate its operating performance between periods and between REITs by removing the effect of its capital structure (primarily interest expense) and asset base (primarily depreciation and amortization) from its operating results; and (ii) EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin are frequently used by securities analysts, investors and other interested parties as a common performance measure to compare results or estimate valuations across companies in the industry.

EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin have limitations as analytical tools and should not be considered either in isolation or as a substitute for net income (loss) or other methods of analyzing the Company’s operating performance and results as reported under U.S. GAAP. Because of these limitations, EBITDA, Adjusted EBITDA and Hotel Adjusted EBITDA should not be considered as discretionary cash available to the Company to reinvest in the growth of its business or as measures of cash that will be available to the Company to meet its obligations. Further, the Company does not use or present EBITDA, Adjusted EBITDA, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA margin as measures of liquidity or cash flows.

Nareit FFO attributable to stockholders, Adjusted FFO attributable to stockholders, Nareit FFO per share – diluted and Adjusted FFO per share – diluted

Nareit FFO attributable to stockholders and Nareit FFO per diluted share (defined as set forth below) are presented herein as non-GAAP measures of the Company’s performance. The Company calculates funds from (used in) operations (“FFO”) attributable to stockholders for a given operating period in accordance with standards established by the National Association of Real Estate Investment Trusts (“Nareit”), as net income (loss) attributable to stockholders (calculated in accordance with U.S. GAAP), excluding depreciation and amortization, gains or losses on sales of assets, impairment, and the cumulative effect of changes in accounting principles, plus adjustments for unconsolidated joint ventures. Adjustments for unconsolidated joint ventures are calculated to reflect the Company’s pro rata share of the FFO of those entities on the same basis. As noted by Nareit in its December 2018 “Nareit Funds from Operations White Paper – 2018 Restatement,” since real estate values historically have risen or fallen with market conditions, many industry investors have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. For these reasons, Nareit adopted the FFO metric in order to promote an industry-wide measure of REIT operating performance. The Company believes Nareit FFO provides useful information to investors regarding its operating performance and can facilitate comparisons of operating performance between periods and between REITs. The Company’s presentation may not be comparable to FFO reported by other REITs that do not define the terms in accordance with the current Nareit definition, or that interpret the current Nareit definition differently. The Company calculates Nareit FFO per diluted share as Nareit FFO divided by the number of fully diluted shares outstanding during a given operating period.

The Company also presents Adjusted FFO attributable to stockholders and Adjusted FFO per diluted share when evaluating its performance because management believes that the exclusion of certain additional items described below provides useful supplemental information to investors regarding the Company’s ongoing operating performance. Management historically has made the adjustments detailed below in evaluating its performance and in its annual budget process. Management believes that the presentation of Adjusted FFO provides useful supplemental information that is beneficial to an investor’s complete understanding of operating performance. The Company adjusts Nareit FFO attributable to stockholders for the following items, which may occur in any period, and refers to this measure as Adjusted FFO attributable to stockholders:

Costs associated with hotel acquisitions or dispositions expensed during the period;
Severance expense;
Share-based compensation expense;
Casualty gains or losses; and
Other items that management believes are not representative of the Company’s current or future operating performance.

Net Debt

Net Debt, presented herein, is a non-GAAP financial measure that the Company uses to evaluate its financial leverage. Net Debt is calculated as (i) debt excluding unamortized deferred financing costs; and (ii) the Company’s share of investments in affiliate debt, excluding unamortized deferred financing costs; reduced by (a) cash and cash equivalents; and (b) restricted cash and cash equivalents. Net Debt also excludes Debt associated with hotels in receivership.

The Company believes Net Debt provides useful information about its indebtedness to investors as it is frequently used by securities analysts, investors and other interested parties to compare the indebtedness of companies. Net Debt should not be considered as a substitute to debt presented in accordance with U.S. GAAP. Net Debt may not be comparable to a similarly titled measure of other companies.

Occupancy

Occupancy represents the total number of room nights sold divided by the total number of room nights available at a hotel or group of hotels. Occupancy measures the utilization of the Company’s hotels’ available capacity. Management uses Occupancy to gauge demand at a specific hotel or group of hotels in a given period. Occupancy levels also help management determine achievable Average Daily Rate (“ADR”) levels as demand for rooms increases or decreases.

Average Daily Rate

ADR (or rate) represents rooms revenue divided by total number of room nights sold in a given period. ADR measures average room price attained by a hotel and ADR trends provide useful information concerning the pricing environment and the nature of the customer base of a hotel or group of hotels. ADR is a commonly used performance measure in the hotel industry, and management uses ADR to assess pricing levels that the Company is able to generate by type of customer, as changes in rates have a more pronounced effect on overall revenues and incremental profitability than changes in Occupancy, as described above.

Revenue per Available Room

Revenue per Available Room (“RevPAR”) represents rooms revenue divided by the total number of room nights available to guests for a given period. Management considers RevPAR to be a meaningful indicator of the Company’s performance as it provides a metric correlated to two primary and key factors of operations at a hotel or group of hotels: Occupancy and ADR. RevPAR is also a useful indicator in measuring performance over comparable periods.

Total RevPAR

Total RevPAR represents rooms, food and beverage and other hotel revenues divided by the total number of room nights available to guests for a given period. Management considers Total RevPAR to be a meaningful indicator of the Company’s performance as approximately one-third of revenues are earned from food and beverage and other hotel revenues. Total RevPAR is also a useful indicator in measuring performance over comparable periods.

Group Revenue Pace

Group Revenue Pace represents bookings for future business and is calculated as group room nights multiplied by the contracted room rate expressed as a percentage of a prior period relative to a prior point in time.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250505602160/en/

Investor Contact

Ian Weissman

+ 1 571 302 5591

KEYWORDS: United States North America Virginia

INDUSTRY KEYWORDS: Construction & Property Lodging REIT Travel

MEDIA:

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