Market Newsdesk

General Atlantic and UBS Announce Strategic Partnership Focused on Private Credit Opportunities

NEW YORK & ZURICH–(BUSINESS WIRE)–
General Atlantic and UBS Group AG (NYSE: UBS) announce today a strategic partnership focused on private credit opportunities. The collaboration between UBS and General Atlantic Credit (GA Credit) aims to enhance investing clients’ and borrowers’ access to a broader set of direct lending and other credit products.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250506296938/en/

The partnership formalizes and expands a history of collaboration, bringing together two leading global platforms to create a compelling private credit offering by combining UBS’s advisory and investment banking origination capabilities with General Atlantic’s extensive global network, sourcing reach across industries and geographies, and recognized leadership as a private credit investor.

Bill Ford, Chairman and Chief Executive Officer of General Atlantic, commented: “We are excited to bring together General Atlantic’s deep expertise in private credit investing with UBS’s strengths in origination, global client relationships, and advisory services. Our complementary cultures position us well to scale a market-leading private credit platform, and we look forward to capturing the most compelling opportunities for our investing clients.”

Sergio P. Ermotti, Group Chief Executive Officer of UBS, said: “We’re pleased to enter this strategic partnership with General Atlantic, leveraging our two firms’ individual strengths to jointly deliver a broader range of innovative private credit solutions. This collaboration is rooted in a shared dedication to client centricity, enabling us to bring to bear the best of both our firms’ market leading capabilities across private credit investing, capital markets, and asset management.”

Additional information:

This collaboration advances the GA Credit platform by unlocking differentiated access to proprietary deal flow, delivering customized solutions across the capital structure and business lifecycle, and adding a complementary strategy to Atlantic Park, which will benefit from expanded origination opportunities through the partnership. It also marks a significant step in UBS’s growth ambitions for its Global Banking capital markets platform, enhancing its scale and capabilities.

GA Credit will be responsible for leading the investment activities, leveraging UBS’s origination capabilities, and managing a dedicated private credit team formed through the integration of professionals from both GA Credit and UBS Asset Management’s Credit Investments Group (CIG). Through this collaboration, CIG will have the ability to source incremental private credit assets for its multi-credit strategies.

The strategic partnership will focus on providing senior secured direct lending financing to companies in North America and Western Europe. It will strengthen UBS’s Investment Bank private markets capabilities, particularly in the Americas, by providing private credit solutions across mid- and large-cap structures, including both corporate and sponsor-backed assets in a capital efficient way.

Advisors

Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to General Atlantic. Latham & Watkins LLP served as legal counsel to UBS.

About UBS

UBS is a leading and truly global wealth manager and the leading universal bank in Switzerland. It also provides diversified asset management solutions and focused investment banking capabilities. UBS manages $6.2 trillion of invested assets as per the first quarter of 2025. UBS helps clients achieve their financial goals through personalized advice, solutions, and products. Headquartered in Zurich, Switzerland, the firm operates in more than 50 markets around the globe. UBS Group shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).

About General Atlantic

General Atlantic is a leading global investor with more than four and a half decades of experience providing capital and strategic support to over 830 companies throughout its history. Established in 1980, General Atlantic continues to be a dedicated partner to visionary founders and investors seeking to build dynamic businesses and create long-term value. The firm leverages its patient capital, operational expertise, and global platform to support a diversified investment platform spanning Growth Equity, Credit, Climate, and Sustainable Infrastructure strategies. General Atlantic manages approximately $108 billion in assets under management, inclusive of all strategies, as of March 31, 2025, with more than 900 professionals in 20 countries across five regions. For more information on General Atlantic, please visit: www.generalatlantic.com.

About General Atlantic Credit

General Atlantic Credit (“GA Credit”) is the dedicated credit investment platform within General Atlantic, a leading global growth investor. GA Credit leverages a demonstrated track record of strategic credit partnerships across market cycles and capital structures alongside General Atlantic’s more than 45 years of domain expertise and company-building capabilities. GA Credit’s Atlantic Park strategy provides flexible capital to high-quality companies seeking a strategic partner at various stages of the corporate and economic lifecycle. This partnership approach enables Atlantic Park to create customized capital solutions tailored to a company’s specific capital needs.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250506296938/en/

UBS Group AG and UBS AG

Media contact

Switzerland: +41-44-234 85 00

UK: +44-207-567 47 14

Americas: +1-212-882 58 58

APAC: +852-297-1 82 00

www.ubs.com/media

General Atlantic

[email protected]

KEYWORDS: Europe Switzerland United States North America New York

INDUSTRY KEYWORDS: Finance Consulting Business Professional Services Asset Management

MEDIA:

Logo

Logo

IQVIA Reports First-Quarter 2025 Results

• Revenue of $3,829 million
• GAAP Net Income of $249 million, Adjusted EBITDA of $883 million
• GAAP Diluted Earnings per Share of $1.40, Adjusted Diluted Earnings per Share of $2.70
• R&D Solutions quarterly bookings of $2.1 billion, resulting in trailing-twelve-month bookings of $9.7 billion and a trailing-twelve-month book-to-bill ratio of 1.14x
• R&D Solutions contracted backlog of $31.5 billion, up 4.8 percent year-over-year
• TAS Revenue of $1,546 million, up 6.4 percent reported year-over-year and 7.6 percent at constant currency
• Operating Cash Flow of $568 million and Free Cash Flow of $426 million, up 13 percent year-over-year, representing 89 percent of Adjusted Net Income
• Repurchased $425 million of common stock
• Raised full-year revenue guidance by $275 million to reflect more favorable foreign currency exchange rates; reaffirmed profit guidance

RESEARCH TRIANGLE PARK, N.C.–(BUSINESS WIRE)–
IQVIA Holdings Inc. (“IQVIA”) (NYSE:IQV), a leading global provider of clinical research services, commercial insights and healthcare intelligence to the life sciences and healthcare industries, today reported financial results for the quarter ended March 31, 2025.

First-Quarter 2025 Operating Results

Revenue for the first quarter of $3,829 million increased 2.5 percent on a reported basis and 3.5 percent at constant currency, compared to the first quarter of 2024. Technology & Analytics Solutions (TAS) revenue of $1,546 million increased 6.4 percent on a reported basis and 7.6 percent at constant currency. Research & Development Solutions (R&DS) revenue of $2,102 million increased 0.3 percent on a reported basis and 1.1 percent at constant currency. Excluding reimbursed expenses, R&DS revenue grew 1.2 percent on a reported basis. Contract Sales & Medical Solutions (CSMS) revenue of $181 million decreased 4.2 percent on a reported basis and 2.1 percent at constant currency.

As of March 31, 2025, R&DS contracted backlog, including reimbursed expenses, was $31.5 billion, growing 4.8 percent year-over-year and 4.6 percent at constant currency. The company expects approximately $7.9 billion of this backlog to convert to revenue in the next twelve months. First quarter net new bookings were $2.1 billion, representing a book-to-bill ratio of 1.02x, and resulting in a trailing-twelve-month book-to-bill ratio of 1.14x.

First-quarter GAAP Net Income was $249 million and GAAP Diluted Earnings per Share was $1.40. Adjusted EBITDA was $883 million, up 2.4 percent year-over-year. Adjusted Net Income was $479 million and Adjusted Diluted Earnings per Share was $2.70, up 2.4 percent and 6.3 percent, respectively.

“IQVIA delivered strong revenue and profit performance, at the high-end of our expectations,” said Ari Bousbib, chairman and CEO of IQVIA. “In the clinical trial business, we experienced delayed decision-making by customers on new programs, reflecting incremental macroeconomic and industry sector uncertainty. Despite the environment, our R&DS forward-looking indicators such as qualified pipeline, RFP flow, and backlog continued to grow. On the commercial side, the TAS business delivered above target performance, with revenue growth of 7.6 percent at constant currency. Our strong financial results demonstrate that we are navigating the current market conditions more effectively than our sector, reflecting the scale and strength of our differentiated portfolio and the resilience of our operational execution.”

Financial Position

As of March 31, 2025, cash and cash equivalents were $1,740 million and debt was $14,330 million, resulting in net debt of $12,590 million. IQVIA’s Net Leverage Ratio was 3.40x trailing twelve-month Adjusted EBITDA. For the first quarter, Operating Cash Flow was $568 million and Free Cash Flow was $426 million.

Share Repurchase

During the first quarter of 2025, the company repurchased $425 million of its common stock. IQVIA had $2,588 million of share repurchase authorization remaining as of March 31, 2025.

Full-Year 2025 Guidance

To reflect the favorable change in foreign currency exchange rates since the company released its prior guidance, the company is raising its full-year 2025 revenue guidance to be between $16,000 million and $16,400 million. The company reaffirms its profit guidance of Adjusted EBITDA between $3,765 million and $3,885 million, and Adjusted Diluted Earnings per Share between $11.70 and $12.10.

All financial guidance assumes foreign currency exchange rates as of May 5, 2025 remain in effect for the forecast period.

Webcast & Conference Call Details

IQVIA will host a conference call at 9:00 a.m. Eastern Time today to discuss its first-quarter 2025 results and its second-quarter and full-year 2025 guidance. To listen to the event and view the presentation slides via webcast, join from the IQVIA Investor Relations website at http://ir.iqvia.com. To participate in the conference call, interested parties must register in advance by clicking on this link. Following registration, participants will receive a confirmation email containing details on how to join the conference call, including the dial-in and a unique passcode and registrant ID. At the time of the live event, registered participants connect to the call using the information provided in the confirmation email and will be placed directly into the call.

About IQVIA

IQVIA (NYSE:IQV) is a leading global provider of clinical research services, commercial insights and healthcare intelligence to the life sciences and healthcare industries. IQVIA’s portfolio of solutions are powered by IQVIA Connected Intelligence™ to deliver actionable insights and services built on high-quality health data, Healthcare-grade AI™, advanced analytics, the latest technologies and extensive domain expertise. IQVIA is committed to using artificial intelligence (“AI”) responsibly, with AI-powered capabilities built on best-in-class approaches to privacy, regulatory compliance and patient safety, and delivering AI to the high standards of trust, scalability and precision demanded by the industry. With approximately 89,000 employees in over 100 countries, including experts in healthcare, life sciences, data science, technology and operational excellence, IQVIA is dedicated to accelerating the development and commercialization of innovative medical treatments to help improve patient outcomes and population health worldwide.

IQVIA is a global leader in protecting individual patient privacy. The company uses a wide variety of privacy-enhancing technologies and safeguards to protect individual privacy while generating and analyzing information on a scale that helps healthcare stakeholders identify disease patterns and correlate with the precise treatment path and therapy needed for better outcomes. IQVIA’s insights and execution capabilities help biotech, medical device and pharmaceutical companies, medical researchers, government agencies, payers and other healthcare stakeholders tap into a deeper understanding of diseases, human behaviors and scientific advances, in an effort to advance their path toward cures. To learn more, visit www.iqvia.com.

Cautionary Statements Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, our full-year 2025 guidance. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “assume,” “anticipate,” “intend,” “plan,” “forecast,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions, and variations or negatives of these words that are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from our expectations due to a number of factors, including, but not limited to, the following: business disruptions caused by natural disasters, pandemics such as the COVID-19 (coronavirus) outbreak, including any variants, and the public health policy responses to the outbreak, and international conflicts or other disruptions outside of our control; most of our contracts may be terminated on short notice, and we may lose or experience delays with large client contracts or be unable to enter into new contracts; the market for our services may not grow as we expect; we may be unable to successfully develop and market new services or enter new markets; imposition of restrictions on our use of data by data suppliers or their refusal to license data to us; any failure by us to comply with contractual, regulatory or ethical requirements under our contracts, including current or future changes to data protection and privacy laws; breaches or misuse of our or our outsourcing partners’ security or communications systems; failure to meet our productivity or business transformation objectives; failure to successfully invest in growth opportunities; our ability to protect our intellectual property rights and our susceptibility to claims by others that we are infringing on their intellectual property rights; the expiration or inability to acquire third party licenses for technology or intellectual property; any failure by us to accurately and timely price and formulate cost estimates for contracts, or to document change orders; hardware and software failures, delays in the operation of our computer and communications systems or the failure to implement system enhancements; the rate at which our backlog converts to revenue; our ability to acquire, develop and implement technology necessary for our business; consolidation in the industries in which our clients operate; risks related to client or therapeutic concentration; government regulators or our customers may limit the number or scope of indications for medicines and treatments or withdraw products from the market, and government regulators may impose new regulatory requirements or may adopt new regulations affecting the biopharmaceutical industry; the risks associated with operating on a global basis, including currency or exchange rate fluctuations and legal compliance, including anti-corruption laws; risks related to the enactment of legislation or the imposition of regulations or other restrictions or actions by governments that create business uncertainty and have the potential to limit trade; risks related to changes in accounting standards; general economic conditions in the markets in which we operate, including financial market conditions, inflation, and risks related to sales to government entities; the impact of changes in tax laws and regulations; and our ability to successfully integrate, and achieve expected benefits from, our acquired businesses. For a further discussion of the risks relating to our business, see the “Risk Factors” in our annual report on Form 10-K for the fiscal year ended December 31, 2024, filed with the Securities and Exchange Commission (the “SEC”), as such factors may be amended or updated from time to time in our subsequent periodic and other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We assume no obligation to update any such forward-looking statement after the date of this release, whether as a result of new information, future developments or otherwise.

Note on Non-GAAP Financial Measures

This release includes information based on financial measures that are not recognized under generally accepted accounting principles in the United States (“GAAP”), such as Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted Earnings per Share, Gross Leverage Ratio, Net Leverage Ratio and Free Cash Flow. Non-GAAP financial measures are presented only as a supplement to the company’s financial statements based on GAAP. Non-GAAP financial information is provided to enhance understanding of the company’s financial performance, but none of these non-GAAP financial measures are recognized terms under GAAP, and non-GAAP measures should not be considered in isolation from, or as a substitute analysis for, the company’s results of operations as determined in accordance with GAAP. The company uses non-GAAP measures in its operational and financial decision making, and believes that it is useful to exclude certain items in order to focus on what it regards to be a more meaningful indicator of the underlying operating performance of the business. For example, the company excludes all the amortization of intangible assets associated with acquired customer relationships and backlog, databases, non-compete agreements, trademarks and trade names from non-GAAP expense and income measures as such amounts can be significantly impacted by the timing and size of acquisitions. Although we exclude amortization of acquired intangible assets from our non-GAAP expenses, we believe that it is important for investors to understand that revenue generated from such intangibles is included within revenue in determining net income. As a result, internal management reports feature non-GAAP measures which are also used to prepare strategic plans and annual budgets and review management compensation. The company also believes that investors may find non-GAAP financial measures useful for the same reasons, although investors are cautioned that non-GAAP financial measures are not a substitute for GAAP disclosures.

The non-GAAP financial measures are not presented in accordance with GAAP. Please refer to the schedules attached to this release for reconciliations of non-GAAP financial measures contained herein to the most directly comparable GAAP measures. Our full-year 2025 guidance measures (other than revenue) are provided on a non-GAAP basis without a reconciliation to the most directly comparable GAAP measure because the company is unable to predict with a reasonable degree of certainty certain items contained in the GAAP measures without unreasonable efforts. For the same reasons, the company is unable to address the probable significance of the unavailable information. Such items include, but are not limited to, acquisition related expenses, restructuring and related expenses, stock-based compensation and other items not reflective of the company’s ongoing operations.

Non-GAAP measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies comparable to the company, many of which present non-GAAP measures when reporting their results. Non-GAAP measures have limitations as an analytical tool. They are not presentations made in accordance with GAAP, are not measures of financial condition or liquidity and should not be considered as an alternative to profit or loss for the period determined in accordance with GAAP or operating cash flows determined in accordance with GAAP. Non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies. As a result, you should not consider such performance measures in isolation from, or as a substitute analysis for, the company’s results of operations as determined in accordance with GAAP.

IQVIAFIN

Table 1 IQVIA HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (preliminary and unaudited)
		Three Months Ended March 31,
(in millions, except per share data)			2025				2024
Revenues		$	3,829			$	3,737
Cost of revenues, exclusive of depreciation and amortization			2,531				2,444
Selling, general and administrative expenses			508				508
Depreciation and amortization			265				264
Restructuring costs			29				15
Income from operations			496				506
Interest income			(11	)			(11	)
Interest expense			165				166
Loss on extinguishment of debt			4				—
Other expense, net			15				11
Income before income taxes and equity in losses of unconsolidated affiliates			323				340
Income tax expense			61				49
Income before equity in losses of unconsolidated affiliates			262				291
Equity in losses of unconsolidated affiliates			(13	)			(3	)
Net income		$	249			$	288
Earnings per share attributable to common stockholders:
Basic		$	1.42			$	1.58
Diluted		$	1.40			$	1.56
Weighted average common shares outstanding:
Basic			175.7				181.9
Diluted			177.4				184.3

Table 2 IQVIA HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (preliminary and unaudited)
(in millions, except per share data)		March 31, 2025				December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents		$	1,740			$	1,702
Trade accounts receivable and unbilled services, net			3,268				3,204
Prepaid expenses			166				154
Income taxes receivable			43				36
Investments in debt, equity and other securities			136				141
Other current assets and receivables			558				592
Total current assets			5,911				5,829
Property and equipment, net			533				535
Operating lease right-of-use assets			235				238
Investments in debt, equity and other securities			130				108
Investments in unconsolidated affiliates			253				266
Goodwill			15,027				14,710
Other identifiable intangibles, net			4,503				4,499
Deferred income taxes			245				194
Deposits and other assets, net			485				520
Total assets		$	27,322			$	26,899
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses		$	3,559			$	3,684
Unearned income			1,940				1,779
Income taxes payable			139				156
Current portion of long-term debt			1,222				1,145
Other current liabilities			319				193
Total current liabilities			7,179				6,957
Long-term debt, less current portion			13,108				12,838
Deferred income taxes			197				196
Operating lease liabilities			177				173
Other liabilities			676				668
Total liabilities			21,337				20,832
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital, 400.0 shares authorized as of March 31, 2025 and December 31, 2024, $0.01 par value, 258.5 shares issued and 174.1 shares outstanding as of March 31, 2025; 258.2 shares issued and 176.1 shares outstanding as of December 31, 2024			11,173				11,143
Retained earnings			6,314				6,065
Treasury stock, at cost, 84.4 and 82.1 shares as of March 31, 2025 and December 31, 2024, respectively			(10,532	)			(10,103	)
Accumulated other comprehensive loss			(978	)			(1,038	)
Equity attributable to IQVIA Holdings Inc.’s stockholders			5,977				6,067
Noncontrolling interests			8				—
Total stockholders’ equity			5,985				6,067
Total liabilities and stockholders’ equity		$	27,322			$	26,899

Table 3 IQVIA HOLDINGS INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (preliminary and unaudited)
		Three Months Ended March 31,
(in millions)			2025				2024
Operating activities:
Net income		$	249			$	288
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization			265				264
Amortization of debt issuance costs and discount			5				5
Stock-based compensation			72				56
Losses from unconsolidated affiliates			13				3
Loss (gain) on investments, net			1				(12	)
Benefit from deferred income taxes			(41	)			(66	)
Changes in operating assets and liabilities:
Change in accounts receivable, unbilled services and unearned income			128				65
Change in other operating assets and liabilities			(124	)			(81	)
Net cash provided by operating activities			568				522
Investing activities:
Acquisition of property, equipment and software			(142	)			(145	)
Acquisition of businesses, net of cash acquired			(134	)			(142	)
Sales (purchases) of marketable securities, net			2				(1	)
Investments in unconsolidated affiliates, net of payments received			(13	)			(24	)
Investments in debt and equity securities			(19	)			(2	)
Other			1				—
Net cash used in investing activities			(305	)			(314	)
Financing activities:
Proceeds from issuance of debt			1,985				—
Payment of debt issuance costs			(6	)			—
Repayment of debt and principal payments on finance leases			(2,096	)			(43	)
Proceeds from revolving credit facility			275				275
Repayment of revolving credit facility			—				(275	)
Payments related to employee stock incentive plans			(35	)			(60	)
Repurchase of common stock			(375	)			—
Contingent consideration and deferred purchase price payments			(6	)			(3	)
Net cash used in financing activities			(258	)			(106	)
Effect of foreign currency exchange rate changes on cash			33				(34	)
Increase in cash and cash equivalents			38				68
Cash and cash equivalents at beginning of period			1,702				1,376
Cash and cash equivalents at end of period		$	1,740			$	1,444

Table 4 IQVIA HOLDINGS INC. AND SUBSIDIARIES NET INCOME TO ADJUSTED EBITDA RECONCILIATION (preliminary and unaudited)
		Three Months Ended March 31,
(in millions)			2025				2024
Net Income		$	249			$	288
Provision for income taxes			61				49
Depreciation and amortization			265				264
Interest expense, net			154				155
Loss in unconsolidated affiliates			13				3
Stock-based compensation			72				56
Other expense, net (1)			15				21
Loss on extinguishment of debt			4				—
Restructuring and related expenses (2)			42				22
Acquisition related expenses			8				4
Adjusted EBITDA		$	883			$	862

(1)	Reflects certain non-operating income items, revaluations of contingent consideration and certain non-recurring expenses.
(2)	Reflects restructuring costs as well as accelerated expenses related to lease exits.

Table 5 IQVIA HOLDINGS INC. AND SUBSIDIARIES NET INCOME TO ADJUSTED NET INCOME RECONCILIATION (preliminary and unaudited)
		Three Months Ended March 31,
(in millions, except per share data)			2025				2024
Net Income		$	249			$	288
Provision for income taxes			61				49
Purchase accounting amortization (1)			125				129
Loss in unconsolidated affiliates			13				3
Stock-based compensation			72				56
Other expense, net (2)			15				21
Loss on extinguishment of debt			4				—
Restructuring and related expenses (3)			42				22
Acquisition related expenses			8				4
Adjusted Pre Tax Income		$	589			$	572
Adjusted tax expense			(110	)			(104	)
Adjusted Net Income		$	479			$	468
Adjusted earnings per share attributable to common stockholders:
Basic		$	2.73			$	2.57
Diluted		$	2.70			$	2.54
Weighted average common shares outstanding:
Basic			175.7				181.9
Diluted			177.4				184.3

(1)	Reflects all the amortization of acquired intangible assets.
(2)	Reflects certain non-operating income items, revaluations of contingent consideration and certain non-recurring expenses.
(3)	Reflects restructuring costs as well as accelerated expenses related to lease exits.

Table 6 IQVIA HOLDINGS INC. AND SUBSIDIARIES NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW RECONCILIATION (preliminary and unaudited)
(in millions)		Three Months Ended March 31, 2025				Three Months Ended March 31, 2024
Net Cash provided by Operating Activities		$	568			$	522
Acquisition of property, equipment and software			(142	)			(145	)
Free Cash Flow		$	426			$	377

Table 7 IQVIA HOLDINGS INC. AND SUBSIDIARIES CALCULATION OF GROSS AND NET LEVERAGE RATIOS AS OF MARCH 31, 2025 (preliminary and unaudited)
(in millions)
Gross Debt, net of Unamortized Discount and Debt Issuance Costs, as of March 31, 2025		$	14,330
Net Debt as of March 31, 2025		$	12,590
Adjusted EBITDA for the twelve months ended March 31, 2025		$	3,705
Gross Leverage Ratio (Gross Debt/LTM Adjusted EBITDA)		3.87x
Net Leverage Ratio (Net Debt/LTM Adjusted EBITDA)		3.40x

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250506058543/en/

Kerri Joseph, IQVIA Investor Relations ([email protected])

+1.973.541.3558

KEYWORDS: United States North America North Carolina

INDUSTRY KEYWORDS: Technology Security Health Technology Software Biotechnology Health General Health Data Management Artificial Intelligence

MEDIA:

Logo

ReposiTrak Adds 50 Nut Butter Product Suppliers to the Queue for the Rapidly Expanding Food Traceability Network

Ahead of regulatory deadlines, 50 nut butter product suppliers are queued to join ReposiTrak for its innovative, hardware-free traceability solutions

SALT LAKE CITY–(BUSINESS WIRE)–
ReposiTrak (NYSE:TRAK), the world’s largest food traceability and regulatory compliance network, leveraging its established inventory management and out-of-stock reduction SaaS platform, is proud to add 50 nut butter product suppliers to the queue of companies joining the ReposiTrak Traceability Network® (RTN). These companies will efficiently exchange intricate, FDA-required Key Data Elements (KDEs) for each Critical Tracking Event (CTE) in their supply chains, with the goal of meeting traceability requirements before the FDA’s 2028 deadline.

Among the 50 new nut butter product suppliers are many with a rich history. One is a fourth-generation family farm in California’s Central Valley, known for its walnuts and innovative nut butters. Another is a Chicago-area producer specializing in raw, organic chocolate and superfoods. A third is an Austin-based company offering plant-based, certified organic snack bars and cookies made with simple, clean ingredients.

“In order to do the required recordkeeping, retailers would need to identify every nut butter-containing product and work with suppliers to collect the data for every shipment. That could take months, and there’s still a good chance the data will contain errors or omissions,” stated Randy Fields, chairman and CEO of ReposiTrak. “Many retailers have opted to use ReposiTrak to collect traceability data for ALL FOODS, so that no foods are missed. We do the supplier setup and error detection, and the retailer gets data that’s as complete and accurate as possible.”

The ReposiTrak Traceability Network requires no additional hardware or software and the ReposiTrak team assists in making the connections needed under the new regulation. Suppliers can connect to an unlimited number of trading partners and share data for a low, flat fee.

About ReposiTrak

ReposiTrak (NYSE: TRAK) provides retailers, suppliers, food manufacturers and wholesalers with a robust solution suite to help reduce risk and remain in compliance with regulatory requirements, enhance operational controls and increase sales with unrivaled brand protection. Consisting of three product families – food traceability, compliance and risk management and supply chain solutions – ReposiTrak’s integrated, cloud-based applications are supported by an unparalleled team of experts. For more information, please visit https://repositrak.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250506947339/en/

Investor Relations Contact:

John Merrill, CFO

[email protected]

Or

FNK IR

Rob Fink

646.809.4048

[email protected]

KEYWORDS: United States North America Utah

INDUSTRY KEYWORDS: Technology Software Networks Food/Beverage Internet Retail Data Management Supply Chain Management Food Tech

MEDIA:

Logo

LCI Industries Reports First Quarter Financial Results

Operational flexibility, strategic diversification, and effective cost management drove profitable growth

First Quarter 2025 Highlights

• Net sales of $1 billion in the first quarter, up 8% year-over-year
• Net income of $49.4 million, which was 4.7% of net sales, or $1.94 per diluted share, in the first quarter, up 35% from the first quarter of 2024
• Net income, as adjusted for the loss on extinguishment of debt, was $55.6 million, or $2.19 per diluted share, in the first quarter, up 52% from the first quarter of 2024
• Adjusted EBITDA of $110.9 million, or 10.6% of net sales, in the first quarter, up 23% year-over-year
• Operating profit margin of 7.8% in the first quarter, up from 6.0% in the first quarter of 2024
• Cash flows from operating activities of $43 million, up $50 million from the first quarter of 2024
• Returned $57.6 million to shareholders through $28.3 million in share repurchases and a quarterly dividend of $1.15 per share, aggregating $29.4 million in the first quarter
• Refinanced long-term debt, extending most maturities, with issuance of $460 million of 3.000% convertible notes due 2030, repurchase of $368 million of 1.125% convertible notes due 2026, and refinancing of credit agreement with new $400 million term loan that matures in 2032 and $600 million revolving credit facility that matures in 2030
• Strong liquidity position with $231 million of cash and cash equivalents and $595 million of availability on revolving credit facility at March 31, 2025
• Completed the acquisition of Trans/Air, a provider of climate control systems for a wide range of buses and specialty vehicles, that has generated approximately $75 million in annual revenue in recent periods
• In April 2025, completed the acquisition of Freedman Seating, a manufacturer of transportation seating solutions to the bus and specialty vehicle markets, that has generated approximately $125 million in annual revenue in recent periods

ELKHART, Ind.–(BUSINESS WIRE)–
LCI Industries (NYSE: LCII), a leading supplier of engineered components to the recreation and transportation markets, today reported first quarter 2025 results.

“We delivered strong first quarter results, exceeding expectations despite ongoing macroeconomic headwinds. We continued to leverage both our innovative product portfolio and our distinct competitive advantages to capture content growth and market share across multiple product categories. This success, along with our steadfast focus on execution, effective cost management, and operational flexibility, enabled us to achieve both top and bottom line growth,” commented Jason Lippert, LCI Industries’ President and Chief Executive Officer. “Our first quarter results also demonstrated the agility of our operations, as we scaled production to support modest RV inventory rebuilding and drove 20% sales growth in our North American RV OEM business. We also recently acquired Freedman Seating and Trans/Air, deepening our position in the bus market, an adjacency shielded from consumer swings as city and transit fleet upgrades remain essential. Our ability to scale operations and presence in diverse end markets continues to support strong margin expansion, effectively driving an operating margin increase of 180 basis points.”

“This performance reinforces our confidence in the long-term potential of our approach. With an experienced leadership team that has successfully navigated a range of operating environments, we are taking proactive steps to deliver results now, not just when conditions improve,” Mr. Lippert continued. “We remain on track toward our $5 billion organic revenue goal in 2027. We are also on track to deliver an 85 basis point margin improvement in 2025 through optimizing infrastructure. As we move throughout the year, we will continue to effectively monitor, adjust, and lead through changing macroeconomic dynamics.”

“Our team’s unwavering commitment to operational excellence continues to drive LCI Industries forward, even as we navigate a complex macro environment,” commented Ryan Smith, LCI Industries’ Group President – North America. “Backed by a strong culture of innovation, quality, and service, we are executing with discipline across our operations and remain focused on delivering sustainable growth in 2025 and beyond. I wish to offer a sincere thank you for our teams who continue to perform and lead well in this tough environment!”

First Quarter 2025 Results

Consolidated net sales for the first quarter of 2025 were $1,045.6 million, an increase of 8% from 2024 first quarter net sales of $968.0 million. Net income in the first quarter of 2025 was $49.4 million, or $1.94 per diluted share, compared to $36.5 million, or $1.44 per diluted share, in the first quarter of 2024. Adjusted net income in the first quarter of 2025 was $55.6 million, or $2.19 per diluted share, excluding the loss on extinguishment of debt, net of tax effect, during the quarter, which was up 52% from net income in the first quarter of 2024. Adjusted EBITDA in the first quarter of 2025 was $110.9 million, compared to Adjusted EBITDA of $90.3 million in the first quarter of 2024. Additional information regarding adjusted net income and Adjusted EBITDA, as well as reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure of net income, is provided in the “Supplementary Information – Reconciliation of Non-GAAP Measures” section below.

The increase in year-over-year net sales for the first quarter of 2025 was primarily driven by a $65.2 million increase in net sales of the OEM Segment compared to the same period of 2024.

April 2025 Results

April 2025 consolidated net sales were approximately $392 million, up 3% from April 2024, primarily due to increases in Adjacent Industries OEM sales of 8% and RV OEM sales of 7%, partially offset by a decrease in international sales of 13%.

OEM Segment – First Quarter Performance

OEM net sales for the first quarter of 2025 were $823.6 million, an increase of $65.2 million compared to the same period of 2024. RV OEM net sales for the first quarter of 2025 were $530.8 million, up 15% compared to the same prior year period, primarily driven by an 18% increase in North American travel trailer and fifth-wheel wholesale shipments and market share gains, partially offset by an 11% decrease in motorhome wholesale shipments. Adjacent Industries OEM net sales for the first quarter of 2025 were $292.8 million, down 2% year-over-year, primarily due to lower sales to North American marine and powersports OEMs, partially offset by higher sales to utility trailers OEMs. The lower sales were driven by current dealer inventory levels, inflation, and elevated interest rates impacting retail consumer demand.

Operating profit of the OEM Segment was $62.0 million in the first quarter of 2025, or 7.5% of net sales, compared to an operating profit of $32.8 million, or 4.3% of net sales, in the same period in 2024. The operating profit expansion of the OEM Segment for the quarter was primarily driven by the impact of fixed production overhead and SG&A costs spread over increased sales, decreases in material costs, and increases in production labor efficiencies, partially offset by decreases in selling prices.

Aftermarket Segment – First Quarter Performance

Aftermarket net sales for the first quarter of 2025 were $222.0 million, an increase of 6% compared to the same period of 2024. The increase was primarily driven by higher volumes within the RV and marine aftermarkets and market share gains in the automotive aftermarket. Operating profit of the Aftermarket Segment was $19.3 million in the first quarter of 2025, a decrease of $5.4 million compared to the same period of 2024. The operating profit margin of the Aftermarket Segment was 8.7% in the first quarter of 2025, compared to 11.8% in the same period in 2024, and was negatively impacted by increases in sales mix of lower margin products, decreases in automotive aftermarket production volume, and investments in capacity and distribution processes to support growth of the aftermarket segment.

“Our aftermarket business delivered strong results to start 2025, fueled by the success of recent innovations and the growing number of vehicles entering the repair and replacement cycle,” commented Jamie Schnur, LCI Industries’ Group President – Aftermarket. “Our long-term demand potential continues to expand as LCI Industries increases content on RVs, which increases the amount of components that will ultimately enter the repair and replacement cycle and require our support. To ensure we capitalize on this demand and other emerging opportunities, we remain focused on investing in dealer training programs and delivering exceptional service to strengthen our network relationships and enhance the customer experience.”

Income Taxes

The Company’s effective tax rate was 26.5% for the quarter ended March 31, 2025, compared to 24.3% for the quarter ended March 31, 2024. The increase in the effective tax rate was primarily due to discrete tax expense related to tax deficiencies on stock-based compensation and a decrease in cash surrender value of company owned life insurance policies.

Balance Sheet and Other Items

At March 31, 2025, the Company’s cash and cash equivalents balance was $231.2 million, compared to $165.8 million at December 31, 2024. The Company used $29.6 million for an acquisition, $29.4 million for dividend payments to shareholders, $28.3 million for share repurchases, and $9.0 million for capital expenditures in the three months ended March 31, 2025.

On March 14, 2025, the Company closed the sale of $460.0 million aggregate principal amount of 3.000% convertible senior notes due 2030 (“the 2030 Convertible Notes”) in a private placement to qualified institutional buyers, resulting in net proceeds to the Company of approximately $448.5 million after deducting the initial purchasers’ discounts. Concurrent with the issuance of the 2030 Convertible Notes, the Company entered into convertible note hedge transactions and warrant transactions. The proceeds from the sale of the 2030 Convertible Notes were used to repay $368.0 million face value of 1.125% convertible senior notes due 2026 (leaving $92 million of the 2026 notes outstanding), to enter into the convertible note hedge transactions for $67.6 million (which was partially offset by the proceeds from the warrant transactions of $27.6 million), to repurchase $28.3 million of common stock, and for general corporate purposes.

On March 25, 2025, the Company entered into a new credit agreement comprised of a $600.0 million revolving credit facility and a new $400.0 million term loan B. The proceeds from the term loan were used, in part, to repay the remaining outstanding principal of the term loan under the previous credit agreement of $280.0 million and the previous credit agreement was terminated.

Following the refinancing activities detailed above, long-term debt maturities previously due in 2026 are now extended to 2030 for the revolving credit facility and the 2030 Convertible Notes (other than $92 million of the 2026 notes that remain outstanding) and to 2032 for the term loan.

The Company’s outstanding long-term indebtedness, including current maturities, was $938.3 million at March 31, 2025, and the Company was in compliance with its debt covenants. As of March 31, 2025, the Company had $595.3 million of borrowing availability under the revolving credit facility.

Conference Call & Webcast

LCI Industries will host a conference call to discuss its first quarter results on Tuesday, May 6, 2025, at 8:30 a.m. Eastern time, which may be accessed by dialing (833) 470-1428 for participants in the U.S. and (929) 526-1599 for participants outside the U.S. using the required conference ID 255011. Due to the high volume of companies reporting earnings at this time, please be prepared for hold times of up to 15 minutes when dialing in to the call. In addition, an online, real-time webcast, as well as a supplemental earnings presentation, can be accessed on the Company’s website, www.investors.lci1.com.

A replay of the conference call will be available for two weeks by dialing (866) 813-9403 for participants in the U.S. and (44) 204-525-0658 for participants outside the U.S. and referencing access code 323974. A replay of the webcast will be available on the Company’s website immediately following the conclusion of the call.

About LCI Industries

LCI Industries (NYSE: LCII), through its Lippert subsidiary, is a global leader in supplying engineered components to the outdoor recreation and transportation markets. We believe our innovative culture, advanced manufacturing capabilities, and dedication to enhancing the customer experience have established Lippert as a reliable partner for both OEM and aftermarket customers. For more information, visit www.lippert.com.

Forward-Looking Statements

This press release contains certain “forward-looking statements” with respect to our financial condition, results of operations, profitability, margins, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, plans and objectives of management, markets for the Company’s common stock, the impact of legal proceedings, and other matters. Statements in this press release that are not historical facts are “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, and involve a number of risks and uncertainties.

Forward-looking statements, including, without limitation, those relating to production levels, future business prospects, net sales, expenses and income (loss), operating margins, capital expenditures, tax rate, cash flow, financial condition, liquidity, covenant compliance, retail and wholesale demand, integration of acquisitions, R&D investments, commodity prices, addressable markets, and industry trends, whenever they occur in this press release are necessarily estimates reflecting the best judgment of the Company’s senior management at the time such statements were made. There are a number of factors, many of which are beyond the Company’s control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors include, in addition to other matters described in this press release, the impacts of costs and availability of, and tariffs on, raw materials (particularly steel and aluminum) and other components, future pandemics, geopolitical tensions, armed conflicts, or natural disasters on the global economy and on the Company’s customers, suppliers, team members, business and cash flows, pricing pressures due to domestic and foreign competition, seasonality and cyclicality in the industries to which we sell our products, availability of credit for financing the retail and wholesale purchase of products for which we sell our components, inventory levels of retail dealers and manufacturers, availability of transportation for products for which we sell our components, the financial condition of our customers, the financial condition of retail dealers of products for which we sell our components, retention and concentration of significant customers, the costs, pace of and successful integration of acquisitions and other growth initiatives, availability and costs of production facilities and labor, team member benefits, team member retention, realization and impact of expansion plans, efficiency improvements and cost reductions, the disruption of business resulting from natural disasters or other unforeseen events, the successful entry into new markets, the costs of compliance with environmental laws, laws of foreign jurisdictions in which we operate, other operational and financial risks related to conducting business internationally, and increased governmental regulation and oversight, information technology performance and security, the ability to protect intellectual property, warranty and product liability claims or product recalls, interest rates, oil and gasoline prices, and availability, the impact of international, national and regional economic conditions and consumer confidence on the retail sale of products for which we sell our components, and other risks and uncertainties discussed more fully under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and in the Company’s subsequent filings with the Securities and Exchange Commission. Readers of this press release are cautioned not to place undue reliance on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. The Company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

LCI INDUSTRIES OPERATING RESULTS (unaudited)
	Three Months Ended March 31,								Last Twelve Months
		2025				2024
(In thousands, except per share amounts)
Net sales	$	1,045,590			$	968,029			$	3,818,769
Cost of sales		793,841				744,123				2,911,211
Gross profit		251,749				223,906				907,558
Selling, general and administrative expenses		170,432				166,295				665,615
Operating profit		81,317				57,611				241,943
Interest expense, net		5,991				9,321				25,569
Loss on extinguishment of debt		8,053				—				8,053
Income before income taxes		67,273				48,290				208,321
Provision for income taxes		17,835				11,745				52,561
Net income	$	49,438			$	36,545			$	155,760
Net income per common share:
Basic	$	1.94			$	1.44			$	6.12
Diluted	$	1.94			$	1.44			$	6.10
Weighted average common shares outstanding:
Basic		25,426				25,374				25,461
Diluted		25,426				25,389				25,518
Depreciation	$	16,663			$	18,585			$	68,471
Amortization	$	12,879			$	14,104			$	54,075
Capital expenditures	$	9,038			$	8,608			$	42,763

LCI INDUSTRIES SEGMENT RESULTS (unaudited)
	Three Months Ended March 31,								Last Twelve Months
		2025				2024
(In thousands)
Net sales:
OEM Segment:
RV OEMs:
Travel trailers and fifth-wheels	$	471,194			$	390,763			$	1,595,009
Motorhomes		59,608				68,838				223,836
Adjacent Industries OEMs		292,753				298,710				1,106,849
Total OEM Segment net sales		823,555				758,311				2,925,694
Aftermarket Segment:
Total Aftermarket Segment net sales		222,035				209,718				893,075
Total net sales	$	1,045,590			$	968,029			$	3,818,769
Operating profit:
OEM Segment	$	61,974			$	32,836			$	136,219
Aftermarket Segment		19,343				24,775				105,724
Total operating profit	$	81,317			$	57,611			$	241,943
Depreciation and amortization:
OEM Segment depreciation	$	12,327			$	14,035			$	51,776
Aftermarket Segment depreciation		4,336				4,550				16,695
Total depreciation	$	16,663			$	18,585			$	68,471
OEM Segment amortization	$	9,114			$	10,280			$	38,677
Aftermarket Segment amortization		3,765				3,824				15,398
Total amortization	$	12,879			$	14,104			$	54,075

LCI INDUSTRIES BALANCE SHEET INFORMATION (unaudited)
	March 31,				December 31,
		2025				2024
(In thousands)
ASSETS
Current assets
Cash and cash equivalents	$	231,243			$	165,756
Accounts receivable, net		357,138				199,560
Inventories, net		717,438				736,604
Prepaid expenses and other current assets		61,269				58,318
Total current assets		1,367,088				1,160,238
Fixed assets, net		428,046				432,728
Goodwill		590,204				585,773
Other intangible assets, net		393,555				392,018
Operating lease right-of-use assets		222,841				224,313
Other long-term assets		98,264				99,669
Total assets	$	3,099,998			$	2,894,739
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current maturities of long-term indebtedness	$	3,646			$	423
Accounts payable, trade		220,768				187,684
Current portion of operating lease obligations		37,543				38,671
Accrued expenses and other current liabilities		199,310				185,275
Total current liabilities		461,267				412,053
Long-term indebtedness		934,632				756,830
Operating lease obligations		199,766				199,929
Deferred taxes		17,716				26,110
Other long-term liabilities		119,904				112,931
Total liabilities		1,733,285				1,507,853
Total stockholders’ equity		1,366,713				1,386,886
Total liabilities and stockholders’ equity	$	3,099,998			$	2,894,739

LCI INDUSTRIES SUMMARY OF CASH FLOWS (unaudited)
	Three Months Ended March 31,
		2025				2024
(In thousands)
Cash flows from operating activities:
Net income	$	49,438			$	36,545
Adjustments to reconcile net income to cash flows provided by (used in) operating activities:
Depreciation and amortization		29,542				32,689
Stock-based compensation expense		4,933				4,327
Loss on extinguishment of debt		8,053				—
Other non-cash items		2,181				1,107
Changes in assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net		(149,644	)			(131,059	)
Inventories, net		39,121				32,892
Prepaid expenses and other assets		5,800				(2,392	)
Accounts payable, trade		30,005				12,038
Accrued expenses and other liabilities		23,289				6,199
Net cash flows provided by (used in) operating activities		42,718				(7,654	)
Cash flows from investing activities:
Capital expenditures		(9,038	)			(8,608	)
Acquisition of business		(29,579	)			—
Other investing activities		(3,423	)			173
Net cash flows used in investing activities		(42,040	)			(8,435	)
Cash flows from financing activities:
Vesting of stock-based awards, net of shares tendered for payment of taxes		(4,813	)			(9,040	)
Proceeds from revolving credit facility		—				86,248
Repayments under revolving credit facility		(19,261	)			(76,927	)
Proceeds from term loan borrowings		391,000				—
Repayments under term loan and other borrowings		(280,093	)			(5	)
Proceeds from issuance of convertible notes		448,500				—
Repurchase of convertible notes		(368,920	)			—
Purchases of convertible note hedge contracts		(67,574	)			—
Proceeds from issuance of warrants concurrent with note hedge contracts		27,600				—
Partial unwind of convertible note hedge and warrants		1,378				—
Payment of debt issuance costs		(3,122	)			—
Payment of dividends		(29,352	)			(26,721	)
Repurchases of common stock		(28,255	)			—
Other financing activities		(217	)			(2	)
Net cash flows provided by (used in) financing activities		66,871				(26,447	)
Effect of exchange rate changes on cash and cash equivalents		(2,062	)			(996	)
Net increase (decrease) in cash and cash equivalents		65,487				(43,532	)
Cash and cash equivalents at beginning of period		165,756				66,157
Cash and cash equivalents at end of period	$	231,243			$	22,625

LCI INDUSTRIES SUPPLEMENTARY INFORMATION (unaudited)
	Three Months Ended						Last Twelve Months
	March 31,
	2025			2024
Industry Data(1)(in thousands of units):
Industry Wholesale Production:
Travel trailer and fifth-wheel RVs		86.4			73.5			304.5
Motorhome RVs		9.3			10.4			33.8
Industry Retail Sales:
Travel trailer and fifth-wheel RVs		60.6	(2)		65.4			302.7	(2)
Impact on dealer inventories		25.8	(2)		8.1			1.8	(2)
Motorhome RVs		9.3	(2)		9.8			39.5	(2)
	Twelve Months Ended
	March 31,
	2025			2024
Lippert Content Per Industry Unit Produced:
Travel trailer and fifth-wheel RV	$	5,164		$	5,097
Motorhome RV	$	3,750		$	3,656
	March 31,						December 31,
	2025			2024			2024
Balance Sheet Data (debt availability in millions):
Remaining availability under the revolving credit facility (3)	$	595.3		$	153.8		$	452.5
Days sales in accounts receivable, based on last twelve months		29.2			30.5			29.9
Inventory turns, based on last twelve months		4.1			3.7			4.0
	2025
Estimated Full Year Data:
Capital expenditures	$50 – $70 million
Depreciation and amortization	$115 – $125 million
Stock-based compensation expense	$18 – $23 million
Annual tax rate	25% – 27%

(1)	Industry wholesale production data for travel trailer and fifth-wheel RVs and motorhome RVs provided by the Recreation Vehicle Industry Association. Industry retail sales data provided by Statistical Surveys, Inc.
(2)	March 2025 retail sales data for RVs has not been published yet, therefore 2025 retail data for RVs includes an estimate for March 2025 retail units. Retail sales data will likely be revised upwards in future months as various states report.
(3)	Remaining availability under the revolving credit facility is subject to covenant restrictions.

LCI INDUSTRIES SUPPLEMENTARY INFORMATION RECONCILIATION OF NON-GAAP MEASURES (unaudited)
The following table reconciles net income to Adjusted EBITDA and net income as a percentage of net sales to Adjusted EBITDA as a percentage of net sales.
	Three Months Ended March 31,
		2025				2024
(In thousands)
Net income	$	49,438			$	36,545
Interest expense, net		5,991				9,321
Provision for income taxes		17,835				11,745
Depreciation expense		16,663				18,585
Amortization expense		12,879				14,104
EBITDA	$	102,806			$	90,300
Loss on extinguishment of debt	$	8,053			$	—
Adjusted EBITDA	$	110,859			$	90,300
Net sales	$	1,045,590			$	968,029
Net income as a percentage of net sales		4.7	%			3.8	%
Adjusted EBITDA as a percentage of net sales		10.6	%			9.3	%

The following table reconciles net income to adjusted net income and net income per diluted share to adjusted net income per diluted share.
	Three Months Ended March 31,
		2025			2024
(In thousands, except per share amounts)
Net income	$	49,438			$	36,545
Loss on extinguishment of debt		8,053				—
Tax effect of adjustment		(1,930	)			—
Adjusted net income	$	55,561			$	36,545
Net income per common share – diluted	$	1.94			$	1.44
Loss on extinguishment of debt		0.32			$	—
Tax effect of adjustment		(0.07	)		$	—
Adjusted net income per common share – diluted	$	2.19			$	1.44
Weighted average common shares outstanding – diluted		25,426				25,389

In addition to reporting financial results in accordance with U.S. GAAP, the Company has provided the non-GAAP performance measures of Adjusted EBITDA, Adjusted EBITDA as a percentage of net sales, adjusted net income, and adjusted net income per diluted common share to illustrate and improve comparability of its results from period to period. Adjusted EBITDA is defined as net income before interest expense, net, provision for income taxes, depreciation expense, amortization expense, and loss on extinguishment of debt during the three-month periods ended March 31, 2025 and 2024. Adjusted net income is defined as net income adjusted for loss on extinguishment of debt and the related tax effect during the three-month period ended March 31, 2025. The Company considers these non-GAAP measures in evaluating and managing the Company’s operations and believes that discussion of results adjusted for these items is meaningful to investors because it provides a useful analysis of ongoing underlying operating trends. These measures are not in accordance with, nor are they substitutes for, GAAP measures, and they may not be comparable to similarly titled measures used by other companies.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250506981906/en/

Lillian D. Etzkorn, CFO

Phone: (574) 535-1125

E Mail: [email protected]

KEYWORDS: United States North America Indiana

INDUSTRY KEYWORDS: Retail Automotive Manufacturing Manufacturing Transportation Recreational Vehicles Travel Sports Aftermarket Outdoors Specialty Other Manufacturing Machinery Automotive Machine Tools, Metalworking & Metallurgy Engineering

MEDIA:

Posted on May 6, 2025 7:07 am

Shoals Technologies Group, Inc. Reports Financial Results for First Quarter 2025

–  Quarterly Revenue of $80.4 million  –

–  Gross Margin of 35.0%  –

–  Net Loss of $(0.3) million  –

–  Adjusted EBITDA¹ of $12.8 million  –

–  Backlog and Awarded Orders Increased 5% Year-Over-Year to $645.1 million  –

–  Provides Second Quarter and Full Year 2025 Outlook  –

PORTLAND, Tenn., May 06, 2025 (GLOBE NEWSWIRE) — Shoals Technologies Group, Inc. (“Shoals” or the “Company”) (Nasdaq: SHLS), a leading provider of electrical balance of system (“EBOS”) solutions and components, including battery energy storage solutions (“BESS”) and Original Equipment Manufacturer (“OEM”) components for the global energy transition market, today announced results for its first quarter ended March 31, 2025.

“We began the year with a strong start, delivering revenue above our guided range. The investment that we have made in our commercial function is paying dividends as evidenced in both the growth and quality of our order book. I’m proud of the robust backlog and awarded orders of $645 million, with approximately $500 million scheduled for the coming four quarters. The strategic initiatives that are driving increased market penetration and diversification are progressing very well, with commercial success in international, CC&I, BESS, and OEM markets,” said Brandon Moss, CEO of Shoals.

“While volatility and uncertainty may dominate today’s headlines, the markets that we operate within are showing continued strength. Our value proposition of delivering high-quality, innovative products combined with exceptional engineering and design support is resonating with new and existing customers. The underlying fundamentals of both our industry and business opportunities remain very positive. Projects are moving forward, and 2025 is shaping up to be a solid year,” added Mr. Moss.

________________________
_{¹ Non-GAAP financial measures referenced in this release are used by management to assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Reconciliations of non-GAAP operating measures to the most directly comparable GAAP financial measures are included in the non-GAAP reconciliation in this release. Non-GAAP measures should not be used as a substitute for the closest comparable GAAP measures.}

First
Quarter 2025 Financial Results

Revenue decreased 11.5%, to $80.4 million, compared to $90.8 million for the prior-year period, driven by strategic pricing actions, volume discounts, and customer and product mix.

Gross profit was $28.1 million, compared to $36.5 million in the prior-year period. Gross profit as a percentage of revenue was 35.0% compared to 40.2% in the prior-year period. The decline from the prior-year period was driven by strategic pricing actions, volume discounts, customer and product mix, and reduced fixed cost absorption due to lower revenues.

General and administrative expenses were $21.7 million, compared to $22.8 million during the same period in the prior year. The decrease in general and administrative expenses was the result of a $3.3 million decrease in general legal expenses for intellectual property and shareholder litigation matters, offset by a $1.7 million increase in legal expenses related to wire insulation shrinkback litigation.

Income from operations was $4.3 million, compared to $11.6 million during the prior-year period.

Net income (loss) was $(0.3) million compared to $4.8 million during the prior-year period. Earnings (loss) per share was $(0.00) compared to $0.03 in the prior-year period.

Adjusted EBITDA¹ decreased $7.7 million to $12.8 million compared to $20.5 million for the prior-year period.

Adjusted net income¹ decreased $7.4 million to $5.2 million compared to $12.6 million during the prior-year period. Adjusted diluted earnings per share¹ were $0.03 compared to $0.07 in the prior-year period.

Backlog and Awarded Orders

The Company’s backlog and awarded orders as of March 31, 2025, were $645.1 million, representing a 4.9% increase compared to the prior-year period and a 1.6% sequential increase from December 31, 2024. The increase in backlog and awarded orders as compared to the prior-year period reflects consistent demand for the Company’s innovative products, with growth in international markets, which comprises more than 13.4% of backlog and awarded orders.  

Backlog represents signed purchase orders or contractual minimum purchase commitments with take-or-pay provisions and awarded orders are orders we are in the process of documenting with a contract but for which a contract has not yet been signed.

Second Quarter 2025 Outlook

The Company is providing an outlook for the second quarter given the near-term uncertainty in the utility scale solar market, which has resulted in shifting order patterns. Based on current business conditions, business trends and other factors, for the quarter ending June 30, 2025, the Company expects:

• Revenue in the range of $100 million to $110 million
• Adjusted EBITDA¹ in the range of $20 million to $25 million

Full Year 2025 Outlook

Based on current business conditions, business trends and other factors, for the full year 2025, the Company expects:

• Revenue in the range of $410 million to $450 million
• Adjusted EBITDA¹ in the range of $100 million to $115 million
• Cash Flow from operations in the range of $30 million to $45 million
• Capital expenditures in the range of $25 million to $35 million
• Interest expense in the range of $8 million to $12 million

A reconciliation of Adjusted EBITDA¹ guidance, which is a forward-looking measure that is a non-GAAP measure, to the most closely comparable GAAP measure is not provided because we are unable to provide such reconciliation without unreasonable effort. The inability to provide a quantitative reconciliation is due to the uncertainty and inherent difficulty in predicting the occurrence, the financial impact and the periods in which the components of the applicable GAAP measures and non-GAAP adjustments may be recognized. The GAAP measure may include the impact of such items as non-cash share-based compensation, amortization of intangible assets and the tax effect of such items, in addition to other items we have historically excluded from Adjusted EBITDA. We expect to continue to exclude these items in future disclosures of this non-GAAP measure and may also exclude other similar items that may arise in the future.

Webcast and Conference Call Information

Company management will host a webcast and conference call on May 6, 2025, at 8:00 a.m. Eastern Time, to discuss the Company’s financial results.

Interested investors and other parties can listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company’s website at https://investors.shoals.com.

About Shoals Technologies Group, Inc.

Shoals Technologies Group, Inc. is a leading provider of electrical balance of system (“EBOS”) solutions and components, including battery energy storage solutions (“BESS”) and Original Equipment Manufacturer (“OEM”) components, for the global energy transition market. Since its founding in 1996, the Company has introduced innovative technologies and systems solutions that allow its customers to substantially increase installation efficiency and safety while improving system performance and reliability. Shoals Technologies Group, Inc. is a recognized leader in the renewable energy industry whose solutions are deployed on over 70 GW of solar systems globally. For additional information, please visit: https://www.shoals.com.

Investor Relations Contact

Shoals Technologies Group, Inc.
Email: [email protected]

Forward-Looking Statements
This report contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our possible or assumed future results of operations; expectations regarding the utility-scale solar market; project delays; regulatory environment; the effects of strategic pricing actions, volume discounts and customer mix in our key markets; pipeline and orders; business strategies, plans and expectations, including sales and marketing goals; technology developments; financing and investment plans; warranty and liability accruals and estimates of loss or gains; estimates of potential loss related to the wire insulation shrinkback matter (as defined below); litigation strategy and expected benefits or results from the current intellectual property and wire insulation shrinkback litigation; potential growth opportunities, including opportunities associated with our entry into new markets; production and capacity at our plants; and potential repurchases under the Company’s Repurchase Program (as defined below). Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would” or similar expressions and the negatives of those terms.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Some of the key factors and scenarios that could cause actual results to differ from our expectations include, among others, If demand for solar energy projects diminishes, we may not be able to grow; if we fail to accurately estimate the potential losses related to the wire insulation shrinkback matter, or fail to recover the costs and expenses incurred by us from the supplier; the interruption of the flow of raw materials from international vendors has disrupted our supply chain, including as a result of the imposition of additional duties, tariffs, and other charges on imports and exports; the imposition of trade restrictions, import tariffs, anti-dumping, and countervailing duties; we have modified, and in the future may modify, our business strategy to abandon lines of business or implement new lines of business, and modifying our business strategy could have an adverse effect on our business and financial results; amounts included in our backlog and awarded orders may not result in actual revenue or translate into profits; defects or performance problems in our products or their parts, whether due to manufacturing, installation, or use, including those related to the wire insulation shrinkback matter, have a high consequence of failure and can lead to equipment and systems failure, physical injury or death; we have experienced, and may experience in the future, delays, disruptions, quality control, or reputational problems in our manufacturing operations in part due to our vendor concentration; if we fail to retain our key personnel and attract additional qualified personnel; our products are primarily manufactured and shipped from our production facilities in Tennessee, and any damage or disruption at these facilities may harm our business; we may face difficulties with respect to the planned consolidation and relocation of our Tennessee-based manufacturing and distribution operations, and may not realize the benefits thereof; safety issues may subject us to penalties, negatively impact customer relationships, result in higher operating costs, and negatively impact employee morale and turnover; the market for our products is competitive, and we face increased competition as new and existing competitors introduce EBOS system solutions and components; macroeconomic conditions, including high inflation, high interest rates, and geopolitical instability, impact our business and financial results; we are subject to risks associated with the patent infringement complaints that we filed with the U.S. International Trade Commission (“ITC”) and District Courts; if we fail to, or incur significant costs in order to obtain, maintain, protect, defend, or enforce our intellectual property portfolio and other proprietary rights, including the patents we are asserting in ongoing patent infringement litigation; acquisitions, joint ventures, and/or investments and the failure to integrate acquired businesses could disrupt our business; a loss of one or more of our significant customers, their inability to perform under their contracts, or their default in payment could harm our business; a significant drop in the price of electricity may harm our business; the unauthorized access to our information technology systems or the disclosure of personal or sensitive data or confidential information, whether through a breach of our computer system or otherwise, could severely disrupt our business; failure of our information technology systems, including those managed by third parties, whether intentional or inadvertent, could lead to delays in our business operations and, if significant or extreme, affect our results of operations; our expansion outside the U.S. could subject us to additional business, financial, regulatory, and competitive risks; our indebtedness could adversely affect our financial flexibility, restrict our current and future operations, and our competitive position; existing electric utility industry, federal, state, and municipal renewable energy and solar energy policies and regulations, including zoning and siting laws, and any subsequent changes, present technical, regulatory, and economic barriers to the purchase and use of solar energy systems that may significantly reduce demand for our products or harm our ability to compete; changes in tax laws or regulations that are applied adversely to us, or our customers could materially adversely affect our business, financial condition, results of operations, and prospects; and the market price of our Class A common stock may decline and may continue to be subject to significant volatility.

These and other important risk factors are described more fully in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents filed with the Securities and Exchange Commission and could cause actual results to vary from expectations. Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this report. You should read this report with the understanding that our actual future results may be materially different from what we expect.

Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Non-GAAP Financial Measures

Adjusted Gross Profit, Adjusted Gross Profit Percentage, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings per Share (“EPS”)

We define Adjusted Gross Profit as gross profit plus wire insulation shrinkback expenses. We define Adjusted Gross Profit Percentage as Adjusted Gross Profit divided by revenue. We define Adjusted EBITDA as net income (loss) plus/(minus) (i) interest expense, (ii) interest income, (iii) income tax expense, (iv) depreciation expense, (v) amortization of intangibles, (vi) equity-based compensation, (vii) wire insulation shrinkback expenses, and (viii) wire insulation shrinkback litigation expenses. We define Adjusted Net Income as net income (loss) plus (i) amortization of intangibles, (ii) amortization / write-off of deferred financing costs, (iii) equity-based compensation, (iv) wire insulation shrinkback expenses, and (v) wire insulation shrinkback litigation expenses, all net of applicable income taxes. We define Adjusted Diluted EPS as Adjusted Net Income divided by the diluted weighted average shares of Class A common stock outstanding for the applicable period.

Adjusted Gross Profit, Adjusted Gross Profit Percentage, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS are intended as supplemental measures of performance that are neither required by, nor presented in accordance with, GAAP. We present Adjusted Gross Profit, Adjusted Gross Profit Percentage, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS because we believe they assist investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted Gross Profit, Adjusted Gross Profit Percentage, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS: (i) as factors in evaluating management’s performance when determining incentive compensation, as applicable; (ii) to evaluate the effectiveness of our business strategies; and (iii) because our credit agreement uses measures similar to Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS to measure our compliance with certain covenants.

Among other limitations, Adjusted Gross Profit, Adjusted Gross Profit Percentage, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; and may be calculated by other companies in our industry differently than we do or not at all, which may limit their usefulness as comparative measures.

Because of these limitations, Adjusted Gross Profit, Adjusted Gross Profit Percentage, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted EPS should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. You should review the reconciliation of gross profit to Adjusted Gross Profit and Adjusted Gross Profit Percentage, net income (loss) to Adjusted EBITDA, and net income (loss) to Adjusted Net Income and Adjusted Diluted EPS below and not rely on any single financial measure to evaluate our business.

Shoals Technologies Group, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except shares and par value)
	March 31, 2025				December 31, 2024
Assets
Current Assets
Cash and cash equivalents	$	35,609			$	23,511
Accounts receivable, net		67,704				78,181
Unbilled receivables		10,409				20,834
Inventory, net		61,173				55,977
Other current assets		12,851				9,849
Total Current Assets		187,746				188,352
Property, plant and equipment, net		30,040				28,222
Goodwill		69,941				69,941
Other intangible assets, net		39,187				41,083
Deferred tax assets		451,872				454,160
Other assets		9,635				11,322
Total Assets	$	788,421			$	793,080
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable	$	26,714			$	20,032
Accrued expenses and other		12,418				12,541
Warranty liability—current portion		25,956				29,602
Deferred revenue		15,195				18,737
Total Current Liabilities		80,283				80,912
Revolving line of credit		141,750				141,750
Warranty liability, less current portion		5,457				11,392
Other long-term liabilities		2,003				2,226
Total Liabilities		229,493				236,280
Commitments and Contingencies
Stockholders’ Equity
Preferred stock, $0.00001 par value – 5,000,000 shares authorized; none issued and outstanding as of March 31, 2025 and December 31, 2024		—				—
Class A common stock, $0.00001 par value – 1,000,000,000 shares authorized; 171,078,789 and 170,670,779 shares issued; 167,170,402 and 166,762,392 outstanding as of March 31, 2025 and December 31, 2024, respectively		2				2
Additional paid-in capital		485,960				483,550
Treasury stock, at cost, 3,908,387 shares as of March 31, 2025 and December 31, 2024, respectively		(25,331	)			(25,331	)
Retained earnings		98,297				98,579
Total stockholders’ equity		558,928				556,800
Total Liabilities and Stockholders’ Equity	$	788,421			$	793,080

Shoals Technologies Group, Inc. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except per share amounts)
	Three Months Ended March 31,
		2025				2024
Revenue	$	80,631			$	90,807
Cost of revenue		52,221				54,347
Gross profit		28,140				36,460
Operating expenses
General and administrative expenses		21,693				22,772
Depreciation and amortization		2,135				2,104
Total operating expenses		23,828				24,876
Income from operations		4,312				11,584
Interest expense		(2,415	)			(4,475	)
Interest income		118				113
Income before income taxes		2,015				7,222
Income tax expense		(2,297	)			(2,448	)
Net income (loss)	$	(282	)		$	4,774
Earnings (loss) per share of Class A common stock:
Basic	$	(0.00	)		$	0.03
Diluted	$	(0.00	)		$	0.03
Weighted average shares of Class A common stock outstanding:
Basic		166,960				170,282
Diluted		166,960				170,514

Shoals Technologies Group, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands)
	Three Months Ended March 31,
		2025				2024
Cash Flows from Operating Activities
Net income (loss)	$	(282	)		$	4,774
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		3,287				3,002
Amortization/write off of deferred financing costs		156				2,626
Equity-based compensation		2,661				5,023
Provision for obsolete or slow-moving inventory		252				—
Provision for warranty expense		257				565
Deferred taxes		2,288				2,495
Changes in assets and liabilities:
Accounts receivable		10,477				3,715
Unbilled receivables		10,425				16,730
Inventory		(5,448	)			(6,761	)
Other assets		(1,471	)			(3,165	)
Accounts payable		6,682				1,332
Accrued expenses and other		(347	)			(13,402	)
Warranty liability		(9,837	)			(3,680	)
Deferred revenue		(3,542	)			(394	)
Net Cash Provided by Operating Activities		15,558				12,860
Cash Flows from Investing Activities
Purchases of property, plant and equipment		(3,209	)			(2,483	)
Net Cash Used in Investing Activities		(3,209	)			(2,483	)
Cash Flows from Financing Activities
Employee withholding taxes related to net settled equity awards		(251	)			(816	)
Payments on term loan facility		—				(143,750	)
Proceeds from revolving credit facility		20,000				143,750
Repayments of revolving credit facility		(20,000	)			(15,000	)
Deferred financing costs		—				(2,032	)
Net Cash Used in Financing Activities		(251	)			(17,848	)
Net Increase (Decrease) in Cash and Cash Equivalents		12,098				(7,471	)
Cash and Cash Equivalents—Beginning of Period		23,511				22,707
Cash and Cash Equivalents—End of Period	$	35,609			$	15,236

Shoals Technologies Group, Inc.

Adjusted Gross Profit, Adjusted Gross Profit Percentage, Adjusted EBITDA, Adjusted Net Income and

Adjusted Diluted Earnings per Share (“EPS”) (Unaudited)

Reconciliation of Gross Profit to Adjusted Gross Profit and Adjusted Gross Profit Percentage (in thousands):

	Three Months Ended March 31,
		2025				2024
Revenue	$	80,361			$	90,807
Cost of revenue		52,221				54,347
Gross profit	$	28,140			$	36,460
Gross profit percentage		35.0	%			40.2	%
Wire insulation shrinkback expenses (a)	$	—			$	—
Adjusted gross profit	$	28,140			$	36,460
Adjusted gross profit percentage		35.0	%			40.2	%

Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands):

	Three Months Ended March 31,
		2025				2024
Net income (loss)	$	(282	)		$	4,774
Interest expense		2,415				4,475
Interest income		(118	)			(113	)
Income tax expense		2,297				2,448
Depreciation expense		1,391				1,106
Amortization of intangibles		1,896				1,896
Equity-based compensation		2,661				5,023
Wire insulation shrinkback expenses(a)		—				—
Wire insulation shrinkback litigation expenses (b)		2,529				849
Adjusted EBITDA	$	12,789			$	20,458

Reconciliation of Net Income (Loss) to Adjusted Net Income (in thousands):

	Three Months Ended March 31,
		2025				2024
Net income (loss)	$	(282	)		$	4,774
Amortization of intangibles		1,896				1,896
Amortization / write-off of deferred financing costs		156				2,626
Equity-based compensation		2,661				5,023
Wire insulation shrinkback expenses(a)		—				—
Wire insulation shrinkback litigation expenses (b)		2,529				849
Tax impact of adjustments (c)		(1,767	)			(2,547	)
Adjusted Net Income	$	5,193			$	12,621

^(a)  For the three months ended March 31, 2025 and 2024, there were no expenses related to warranty for wire insulation shrinkback relating to the identification, repair and replacement of a subset of wire harnesses presenting unacceptable levels of wire insulation shrinkback. We consider expenses incurred in connection with the identification, repair and replacement of the impacted wire harnesses distinct from normal, ongoing service identification, repair and replacement expenses that would be reflected under ongoing warranty expenses within the operation of our business, which we do not exclude from our non-GAAP measures. In the future, we also intend to exclude from our non-GAAP measures the benefit of liability releases, if any. We believe excluding expenses from these discrete liability events provides investors with a better view of the operating performance of our business and allows for comparability through periods.

^(b)  For the three months ended March 31, 2025 and 2024, represents $2.5 million and $0.8 million, respectively, of expenses incurred in connection with the lawsuit initiated by the Company against the supplier of the defective wire. We consider this litigation distinct from ordinary course legal matters given the expected magnitude of the expenses, the nature of the allegations in the Company’s complaint, the amount of damages sought, and the impact of the matter underlying the litigation on the Company’s financial results. In the future, we also intend to exclude from our non-GAAP measures the benefit of recovery, if any. We believe excluding expenses from these discrete litigation events provides investors with a better view of the operating performance of our business and allows for comparability through periods.

^(c)  Shoals Technologies Group, Inc. is subject to U.S. Federal income taxes, in addition to state and local taxes. Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax. The adjustment to the provision for income tax reflects the effective tax rates below.

	Three Months Ended March 31,
	2025			2024
Statutory U.S. Federal income tax rate	21.0	%		21.0	%
Permanent adjustments	0.6	%		0.8	%
State and local taxes (net of federal benefit)	2.8	%		2.7	%
Effective income tax rate for Adjusted Net Income	24.4	%		24.5	%

Reconciliation of Diluted Weighted Average Shares Outstanding to Adjusted Diluted Weighted Average Shares Outstanding (in thousands, except per share):

	Three Months Ended March 31,
		2025				2024
Adjusted diluted weighted average shares outstanding		166,960				170,514
Adjusted Net Income	$	5,193			$	12,621
Adjusted Diluted EPS	$	0.03			$	0.07