Market Newsdesk

May 6, 2025 7:03 am

Colliers Reports First Quarter Results

Engineering delivers strong year-over-year gains and internal growth

First quarter operating highlights:

	Three months ended
	March 31
(in millions of US$, except EPS)		2025			2024

Revenues	$	1,141.2		$	1,002.0
Adjusted EBITDA (note 1)		116.0			108.7
Adjusted EPS (note 2)		0.87			0.77

GAAP operating earnings		31.6			43.3
GAAP diluted net earnings (loss) per share		(0.08	)		0.26

TORONTO, May 06, 2025 (GLOBE NEWSWIRE) — Colliers International Group Inc. (NASDAQ and TSX: CIGI) (“Colliers” or the “Company”) today announced financial results for the first quarter ended March 31, 2025. All amounts are in US dollars.

First quarter consolidated revenues were $1.14 billion, up 14% (16% in local currency) and Adjusted EBITDA (note 1) was $116.0 million, up 7% (7% in local currency) compared to the prior year quarter. Consolidated internal revenue growth measured in local currencies was up 4% (note 5) versus the prior year quarter. Adjusted EPS (note 2) was $0.87, an increase of 13% over the prior year quarter. Adjusted EPS was not significantly impacted by changes in foreign exchange rates. GAAP operating earnings were $31.6 million compared to $43.3 million in the prior year quarter. The GAAP diluted net loss per share was $0.08 compared to GAAP diluted net earnings per share of $0.26 in the prior year quarter. First quarter GAAP diluted net loss per share was not significantly impacted by changes in foreign exchange rates.

Over the past 12 months, 72% of the Company’s earnings were generated from recurring service revenues highlighting the strength and resilience of its highly diversified business model. Trailing 12-month free cash flow (note 3) exceeded $400 million with a conversion rate of 136%, well above the Company’s long-term target rate of 100% of adjusted net earnings.

“We’re pleased with our operating results for the quarter, which met expectations and keep us on track to achieve our full-year targets,” said Jay S. Hennick, Chairman & CEO of Colliers. “When we set our outlook for the year, we took a conservative stance given the macroeconomic and political uncertainty – and we’re glad we did. At Colliers, market volatility has never derailed our focus on creating value for shareholders. Time and again, our leadership team has navigated uncertainty with discipline and has seized opportunities that present themselves – and this time is no different. That said, we’re seeing strength across all our business segments and geographies, which we expect will continue, particularly through the back half of the year.”

“Our recently established Engineering segment delivered strong internal growth in the quarter and combined with acquisitions, achieved meaningful gains over the prior year. With more than 9,000 professionals and annualized revenues of over $1.5 billion, Colliers now ranks among the top global players in this industry with additional opportunities for growth. We also advanced our growth strategy with the acquisition of Ethos Urban, adding best-in-class urban planning capabilities in Australia, and the pending acquisition of Triovest, which will further strengthen our leading position in Canada’s commercial real estate services market. After quarter-end, we also completed the acquisition of Terra Consulting, expanding our Engineering platform in the U.S.”

“With three powerful growth engines, a world-class leadership team, and a 30-year track record of value creation through every market cycle, Colliers is well-positioned to continue delivering outstanding returns for shareholders,” he concluded.

About Colliers

Colliers (NASDAQ, TSX: CIGI) is a global diversified professional services and investment management company. Operating through three industry-leading platforms – Real Estate Services, Engineering, and Investment Management – we have a proven business model, an enterprising culture, and a unique partnership philosophy that drives growth and value creation. For 30 years, Colliers has consistently delivered approximately 20% compound annual returns for shareholders, fuelled by visionary leadership, significant inside ownership and substantial recurring earnings. With nearly $5.0 billion in annual revenues, a team of 23,000 professionals, and more than $100 billion in assets under management, Colliers remains committed to accelerating the success of our clients, investors, and people worldwide. Learn more at corporate.colliers.com, X @Colliers or LinkedIn.

Segmented First Quarter Results

Overall Real Estate Services revenues totalled $637.0 million, down 1% (up 1% in local currency) versus the prior year quarter. Net service revenues were $588.2 million, down 1% (up 1% in local currency). Capital Markets revenues were up 8% (10% in local currency) with solid growth across all asset classes and geographies. Leasing revenues declined 7% (5% in local currency) against a strong comparative last year. Outsourcing revenues were up 1% (3% in local currency) on higher valuation and property management activity. Adjusted EBITDA was $39.1 million, down 12% (12% in local currency) in the seasonally slowest first quarter on continued elevated investments in recruiting as well as revenue mix. The GAAP operating earnings were $15.7 million, relative to $16.8 million in the prior year quarter.

Engineering revenues totalled $377.9 million, up 59% (61% in local currency) compared to the prior year quarter. Net service revenues (excluding pass-through subconsultant and other direct costs) were $286.2 million, up 60% (63% in local currency) driven by the favourable impact of recent acquisitions and strong internal growth. Adjusted EBITDA was $24.0 million, up 84% (86% in local currency) over the prior year quarter. The GAAP operating loss was $5.1 million relative to operating earnings of $3.3 million in the prior year quarter and included the impact of significantly higher intangible asset amortization expense related to recent acquisitions.

Investment Management revenues were $126.2 million, up 3% (3% in local currency) relative to the prior year quarter. Net service revenues (excluding pass-through performance fees) were flat, as expected. Adjusted EBITDA was $55.1 million, up 4% (4% in local currency) compared to the prior year quarter. GAAP operating earnings were $32.9 million in the quarter versus $38.9 million in the prior year quarter, with the prior year quarter including the benefit of a reversal of contingent consideration expense related to an acquisition. AUM exceeded $100 billion for the first time in Company history, closing the quarter at $100.3 billion, up from $98.9 billion as of December 31, 2024.

Unallocated global corporate costs as reported in Adjusted EBITDA were $2.2 million relative to $1.6 million in the prior year quarter. The corporate GAAP operating loss was $11.9 million compared to $15.7 million in the prior year quarter.

Outlook for 2025

The Company’s outlook for 2025 remains unchanged, on the key assumptions that (i) global trade uncertainty will lessen in the second half of the year, and (ii) interest rate volatility will not increase for the balance of the year. The outlook drivers by segment are also unchanged and are described in the accompanying earnings call presentation.

The financial outlook is based on the Company’s best available information as of the date of this press release, and remains subject to change based on numerous macroeconomic, geopolitical, international trade, health, social and related factors. The outlook does not include future acquisitions.

Conference Call

Colliers will be holding a conference call on Tuesday, May 6, 2025 at 11:00 a.m. Eastern Time to discuss the quarter’s results. The call will be simultaneously web cast and can be accessed live or after the call at corporate.colliers.com in the Events section.

Forward-looking Statements

This press release includes or may include forward-looking statements. Forward-looking statements include the Company’s financial performance outlook and statements regarding goals, beliefs, strategies, objectives, plans or current expectations. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance or achievements contemplated in the forward-looking statements. Such factors include: economic conditions, especially as they relate to commercial and consumer credit conditions and consumer spending, particularly in regions where the business may be concentrated; commercial real estate and real asset values, vacancy rates and general conditions of financial liquidity for real estate transactions; trends in pricing and risk assumption for commercial real estate services; the effect of significant movements in capitalization rates across different asset types; a reduction by companies in their reliance on outsourcing for their commercial real estate needs, which would affect revenues and operating performance; competition in the markets served by the Company; the ability to attract new clients and to retain clients and renew related contracts; the ability to attract new capital commitments to Investment Management funds and retain existing capital under management; the ability to retain and incentivize employees; increases in wage and benefit costs; the effects of changes in interest rates on the cost of borrowing; unexpected increases in operating costs, such as insurance, workers’ compensation and health care; changes in the frequency or severity of insurance incidents relative to historical experience; the effects of changes in foreign exchange rates in relation to the US dollar on the Company’s Canadian dollar, Euro, Australian dollar and UK pound sterling denominated revenues and expenses; the impact of pandemics on client demand for the Company’s services, the ability of the Company to deliver its services and the health and productivity of its employees; the impact of global climate change; the impact of political events including elections, referenda, trade policy changes, immigration policy changes, hostilities, war and terrorism on the Company’s operations; the ability to identify and make acquisitions at reasonable prices and successfully integrate acquired operations; the ability to execute on, and adapt to, information technology strategies and trends; the ability to comply with laws and regulations, including real estate investment management and mortgage banking licensure, labour and employment laws and regulations, as well as the anti-corruption laws and trade sanctions; and changes in government laws and policies at the federal, state/provincial or local level that may adversely impact the business.

Additional information and risk factors identified in the Company’s other periodic filings with Canadian and US securities regulators are adopted herein and a copy of which can be obtained at www.sedarplus.ca. Forward looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements in this press release are qualified by these cautionary statements. Except as required by applicable law, Colliers undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Summary unaudited financial information is provided in this press release. This press release should be read in conjunction with the Company’s consolidated financial statements and MD&A to be made available on SEDAR+ at www.sedarplus.ca.

This press release does not constitute an offer to sell or a solicitation of an offer to purchase an interest in any fund.

Colliers International Group Inc.
Condensed Consolidated Statements of Earnings (Loss)
(in thousands of US$, except per share amounts)
				Three months
				ended March 31
*(unaudited)*				2025			2024
Revenues			$	1,141,170		$	1,001,980

Cost of revenues				688,490			606,245
Selling, general and administrative expenses				348,293			299,960
Depreciation				18,647			15,422
Amortization of intangible assets				44,755			35,086
Acquisition-related items (1)				9,381			1,940
Operating earnings				31,604			43,327
Interest expense, net				22,548			19,872
Equity earnings from non-consolidated investments				(3,734	)		(436	)
Other income				(840	)		(215	)
Earnings before income tax				13,630			24,106
Income tax				4,712			9,970
Net earnings				8,918			14,136
Non-controlling interest share of earnings				5,729			8,921
Non-controlling interest redemption increment				7,448			(7,442	)
Net earnings (loss) attributable to Company			$	(4,259	)	$	12,657

Net earnings (loss) per common share

	Basic		$	(0.08	)	$	0.26

	Diluted		$	(0.08	)	$	0.26

Adjusted EPS (2)			$	0.87		$	0.77

Weighted average common shares (thousands)
		Basic		50,615			48,498
		Diluted		50,615			48,845

Notes to Condensed Consolidated Statements of Earnings

(1) Acquisition-related items include contingent acquisition consideration fair value adjustments, contingent acquisition consideration-related compensation expense and transaction costs.
(2) See definition and reconciliation below.

Colliers International Group Inc.
Condensed Consolidated Balance Sheets
(in thousands of US$)

		March 31,		December 31,		March 31,
*(unaudited)*		2025		2024		2024

Assets
Cash and cash equivalents		$	186,319	$	176,257	$	165,321
Restricted cash (1)			54,942		41,724		40,136
Accounts receivable and contract assets			823,800		869,948		704,084
Mortgage warehouse receivables (2)			87,997		77,559		27,499
Prepaids and other assets			313,586		323,117		317,487
Warehouse fund assets			121,191		110,779		42,982
	Current assets		1,587,835		1,599,384		1,297,509
Other non-current assets			229,903		220,299		195,082
Warehouse fund assets			98,455		94,334		80,382
Fixed assets			229,124		227,311		203,554
Operating lease right-of-use assets			402,007		398,507		372,788
Deferred tax assets, net			82,439		79,258		57,313
Goodwill and intangible assets			3,482,741		3,481,524		3,065,686
	Total assets	$	6,112,504	$	6,100,617	$	5,272,314

Liabilities and shareholders’ equity
Accounts payable and accrued liabilities		$	965,253	$	1,140,605	$	884,634
Other current liabilities			110,191		109,439		93,827
Long-term debt – current			9,365		6,061		12,905
Mortgage warehouse credit facilities (2)			81,226		72,642		21,403
Operating lease liabilities – current			102,083		92,950		88,006
Liabilities related to warehouse fund assets			83,539		86,344		–
	Current liabilities		1,351,657		1,508,041		1,100,775
Long-term debt – non-current			1,657,459		1,502,414		1,337,471
Operating lease liabilities – non-current			379,242		383,921		359,857
Other liabilities			130,121		135,479		126,457
Deferred tax liabilities, net			74,036		78,459		38,900
Liabilities related to warehouse fund assets			21,789		14,103		84,545
Redeemable non-controlling interests			1,156,652		1,152,618		1,060,207
Shareholders’ equity			1,341,548		1,325,582		1,164,102
	Total liabilities and equity	$	6,112,504	$	6,100,617	$	5,272,314

Supplemental balance sheet information
Total debt (3)		$	1,666,824	$	1,508,475	$	1,350,376
Total debt, net of cash and cash equivalents (3)			1,480,505		1,332,218		1,185,055
Net debt / pro forma adjusted EBITDA ratio (4)			2.2		2.0		2.0

Notes to Condensed Consolidated Balance Sheets

(1)   Restricted cash consists primarily of cash amounts set aside to satisfy legal or contractual requirements arising in the normal course of business.
(2)   Mortgage warehouse receivables represent mortgage loans receivable, the majority of which are offset by borrowings under mortgage warehouse credit facilities which fund loans that financial institutions have committed to purchase.
(3)   Excluding mortgage warehouse credit facilities.
(4)   Net debt for financial leverage ratio excludes restricted cash and mortgage warehouse credit facilities, in accordance with debt agreements.

Colliers International Group Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands of US$)
			Three months ended
			March 31
*(unaudited)*			2025			2024

Cash provided by (used in)

Operating activities
Net earnings		$	8,918		$	14,136
Items not affecting cash:
	Depreciation and amortization		63,402			50,508
	Gains attributable to mortgage servicing rights		(4,039	)		(1,315	)
	Gains attributable to the fair value of loan
	premiums and origination fees		(4,569	)		(2,199	)
	Deferred income tax		(9,184	)		(3,989	)
	Other		19,349			13,462
			73,877			70,603

Increase in accounts receivable, prepaid
	expenses and other assets		30,274			4,641
Decrease in accounts payable, accrued
	expenses and other liabilities		(38,392	)		(46,642	)
Decrease in accrued compensation			(152,477	)		(146,932	)
Contingent acquisition consideration paid			(2,268	)		(2,738	)
Mortgage origination activities, net			3,485			3,498
Sales to AR Facility, net			1,025			(20,045	)
Net cash used in operating activities			(84,476	)		(137,615	)

Investing activities
Acquisition of businesses, net of cash acquired			(9,485	)		–
Purchases of fixed assets			(14,654	)		(16,873	)
Purchases of warehouse fund assets			(10,813	)		(36,426	)
Proceeds from disposal of warehouse fund assets			–			4,944
Cash collections on AR Facility deferred purchase price			48,421			33,918
Other investing activities			(23,295	)		(35,415	)
Net cash used in investing activities			(9,826	)		(49,852	)

Financing activities
Increase (decrease) in long-term debt, net			141,908			(105,052	)
Purchases of non-controlling interests, net			(5,303	)		(2,654	)
Dividends paid to common shareholders			(7,592	)		(7,132	)
Distributions paid to non-controlling interests			(8,458	)		(10,306	)
Issuance of subordinate voting shares			–			286,924
Other financing activities			(1,177	)		14,129
Net cash provided by financing activities			119,378			175,909

Effect of exchange rate changes on cash,
	cash equivalents and restricted cash		(1,796	)		(2,060	)

Net change in cash and cash
	equivalents and restricted cash		23,280			(13,618	)
Cash and cash equivalents and
	restricted cash, beginning of period		217,981			219,075
Cash and cash equivalents and
	restricted cash, end of period	$	241,261		$	205,457

Colliers International Group Inc.
Segmented Results
(in thousands of US dollars)

		Real Estate					Investment
(unaudited)		Services		Engineering			Management		Corporate			Total
Three months ended March 31
2025
	Revenues	$	636,972	$	377,874		$	126,202	$	122		$	1,141,170
	Net Service Revenues		588,233		286,172			119,157		122		$	993,684
	Adjusted EBITDA		39,079		24,024			55,096		(2,155	)		116,044
	Operating earnings (loss)		15,682		(5,130	)		32,907		(11,855	)		31,604

2024
	Revenues	$	641,275	$	238,061		$	122,521	$	123		$	1,001,980
	Net Service Revenues		592,457		178,628			119,521		123			890,729
	Adjusted EBITDA		44,429		13,060			52,850		(1,644	)		108,695
	Operating earnings (loss)		16,816		3,300			38,880		(15,669	)		43,327

Notes

Non-GAAP Measures

1. Reconciliation of net earnings to Adjusted EBITDA

Adjusted EBITDA is defined as net earnings, adjusted to exclude: (i) income tax; (ii) other income; (iii) interest expense; (iv) depreciation and amortization, including amortization of mortgage servicing rights (“MSRs”); (v) gains attributable to MSRs; (vi) acquisition-related items (including contingent acquisition consideration fair value adjustments, contingent acquisition consideration-related compensation expense and transaction costs); (vii) restructuring costs and (viii) stock-based compensation expense, including related to the CEO’s performance-based long-term incentive plan (“LTIP”). We use Adjusted EBITDA to evaluate our own operating performance and our ability to service debt, as well as an integral part of our planning and reporting systems. Additionally, we use this measure in conjunction with discounted cash flow models to determine the Company’s overall enterprise valuation and to evaluate acquisition targets. We present Adjusted EBITDA as a supplemental measure because we believe such measure is useful to investors as a reasonable indicator of operating performance because of the low capital intensity of the Company’s service operations. We believe this measure is a financial metric used by many investors to compare companies, especially in the services industry. This measure is not a recognized measure of financial performance of the consolidated Company under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. Our method of calculating Adjusted EBITDA may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to Adjusted EBITDA appears below.

	Three months ended
	March 31
*(in thousands of US$)*	2025			2024

Net earnings	$	8,918		$	14,136
Income tax		4,712			9,970
Other income, including equity earnings from non-consolidated investments		(4,574	)		(651	)
Interest expense, net		22,548			19,872
Operating earnings		31,604			43,327
Depreciation and amortization		63,402			50,508
Gains attributable to MSRs		(4,039	)		(1,315	)
Equity earnings from non-consolidated investments		3,734			436
Acquisition-related items		9,381			1,940
Restructuring costs		5,310			7,111
Stock-based compensation expense		6,652			6,688
Adjusted EBITDA	$	116,044		$	108,695

2. Reconciliation of net earnings and diluted net earnings per common share to adjusted net earnings and Adjusted EPS

Adjusted EPS is defined as diluted net earnings per share adjusted for the effect, after income tax, of: (i) the non-controlling interest redemption increment; (ii) amortization expense related to intangible assets recognized in connection with acquisitions and MSRs; (iii) gains attributable to MSRs; (iv) acquisition-related items; (v) restructuring costs and (vi) stock-based compensation expense, including related to the CEO’s LTIP. We believe this measure is useful to investors because it provides a supplemental way to understand the underlying operating performance of the Company and enhances the comparability of operating results from period to period. Adjusted EPS is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for diluted net earnings per share from continuing operations, as determined in accordance with GAAP. Our method of calculating this non-GAAP measure may differ from other issuers and, accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net earnings to adjusted net earnings and of diluted net earnings per share to adjusted EPS appears below.

	Three months ended
	March 31
*(in thousands of US$)*	2025			2024

Net earnings	$	8,918		$	14,136
Non-controlling interest share of earnings		(5,729	)		(8,921	)
Amortization of intangible assets		44,755			35,086
Gains attributable to MSRs		(4,039	)		(1,315	)
Acquisition-related items		9,381			1,940
Restructuring costs		5,310			7,111
Stock-based compensation expense		6,652			6,688
Income tax on adjustments		(13,482	)		(11,127	)
Non-controlling interest on adjustments		(7,626	)		(6,130	)
Adjusted net earnings	$	44,140		$	37,468

	Three months ended
	March 31
*(in US$)*	2025			2024

Diluted net earnings (loss) per common share	$	(0.08	)	$	0.26
Non-controlling interest redemption increment		0.15			(0.15	)
Amortization expense, net of tax		0.56			0.47
Gains attributable to MSRs, net of tax		(0.05	)		(0.01	)
Acquisition-related items		0.11			(0.02	)
Restructuring costs, net of tax		0.08			0.11
Stock-based compensation expense, net of tax		0.10			0.11
Adjusted EPS	$	0.87		$	0.77

Diluted weighted average shares for Adjusted EPS (thousands)		50,978			48,845

3. Reconciliation of net cash flow from operations to free cash flow

Free cash flow is defined as net cash flow from operating activities plus contingent acquisition consideration paid, less purchases of fixed assets, plus cash collections on AR Facility deferred purchase price less distributions to non-controlling interests. We use free cash flow as a measure to evaluate and monitor operating performance as well as our ability to service debt, fund acquisitions and pay dividends to shareholders. We present free cash flow as a supplemental measure because we believe this measure is a financial metric used by many investors to compare valuation and liquidity measures across companies, especially in the services industry. This measure is not a recognized measure of financial performance under GAAP in the United States, and should not be considered as a substitute for operating earnings, net earnings or cash flow from operating activities, as determined in accordance with GAAP. Our method of calculating free cash flow may differ from other issuers and accordingly, this measure may not be comparable to measures used by other issuers. A reconciliation of net cash flow from operating activities to free cash flow appears below.

	Three months ended
	March 31
*(in thousands of US$)*	2025			2024

Net cash used in operating activities	$	(84,476	)	$	(137,615	)
Contingent acquisition consideration paid		2,268			2,738
Purchase of fixed assets		(14,654	)		(16,873	)
Cash collections on AR Facility deferred purchase price		48,421			33,918
Distributions paid to non-controlling interests		(8,458	)		(10,306	)
Free cash flow	$	(56,899	)	$	(128,138	)

4. Reconciliation of revenues to net service revenues

Net service revenues are defined as revenues excluding subconsultant and other reimbursable direct costs in Real Estate Services and Engineering segments as well as historical pass-through performance fees in Investment Management segment, in which the Company has no economic interest, to better reflect the operating performance of the business.

		Real Estate						Investment
		Services			Engineering			Management			Corporate		Total
Three months ended March 31
2025
	Revenues	$	636,972		$	377,874		$	126,202		$	122	$	1,141,170
	Subconsultant and other direct costs		(48,739	)		(91,702	)		–			–	$	(140,441	)
	Historical pass-through performance fees		–			–			(7,045	)		–		(7,045	)
	Net Service Revenues	$	588,233		$	286,172		$	119,157		$	122	$	993,684

2024
	Revenues	$	641,275		$	238,061		$	122,521		$	123	$	1,001,980
	Subconsultant and other reimbursable costs		(48,818	)		(59,433	)		–			–		(108,251	)
	Historical pass-through performance fees		–			–			(3,000	)		–		(3,000	)
	Net Service Revenues	$	592,457		$	178,628		$	119,521		$	123	$	890,729

5. Local currency revenue and Adjusted EBITDA growth rate and internal revenue growth rate measures

Percentage revenue and Adjusted EBITDA variances presented on a local currency basis are calculated by translating the current period results of our non-US dollar denominated operations to US dollars using the foreign currency exchange rates from the periods against which the current period results are being compared. Percentage revenue variances presented on an internal growth basis are calculated assuming no impact from acquired entities in the current and prior periods. Revenue from acquired entities, including any foreign exchange impacts, are treated as acquisition growth until the respective anniversaries of the acquisitions. We believe that these revenue growth rate methodologies provide a framework for assessing the Company’s performance and operations excluding the effects of foreign currency exchange rate fluctuations and acquisitions. Since these revenue growth rate measures are not calculated under GAAP, they may not be comparable to similar measures used by other issuers.

6. Assets under management

We use the term assets under management (“AUM”) as a measure of the scale of our Investment Management operations. AUM is defined as the gross market value of operating assets and the projected gross cost of development assets of the funds, partnerships and accounts to which we provide management and advisory services, including capital that such funds, partnerships and accounts have the right to call from investors pursuant to capital commitments. Our definition of AUM may differ from those used by other issuers and as such may not be directly comparable to similar measures used by other issuers.

7. Adjusted EBITDA from recurring revenue percentage

Adjusted EBITDA from recurring revenue percentage is computed on a trailing twelve-month basis and represents the proportion of Adjusted EBITDA (note 1) that is derived from Engineering, Outsourcing and Investment Management service lines. All these service lines represent medium to long-term duration revenue streams that are either contractual or repeatable in nature. Adjusted EBITDA for this purpose is calculated in the same manner as for our debt agreement covenant calculation purposes, incorporating the expected full year impact of business acquisitions and dispositions.

COMPANY CONTACTS:
Jay S. Hennick
Chairman & Chief Executive Officer

Christian Mayer
Chief Financial Officer
(416) 960-9500

May 6, 2025 7:03 am

Genius Sports Increases First Quarter Group Revenue and Group Adj. EBITDA by 20% and 188%, Respectively, and Maintains 2025 Outlook for 21% Group Revenue Growth and 20% Group Adj. EBITDA Margin

Genius Sports Increases First Quarter Group Revenue and Group Adj. EBITDA by 20% and 188%, Respectively, and Maintains 2025 Outlook for 21% Group Revenue Growth and 20% Group Adj. EBITDA Margin

Group Revenue of $144m, representing 20% growth year-over-year
Group Net Loss significantly reduced to ($8m) whilst Group Adj. EBITDA nearly tripled year-over-year to $20m
Group Revenue growth contributed to Group Adj. EBITDA at a 53% incremental margin
Group Adj. EBITDA margin expanded by 800 basis points year-over-year to 13.7%
Genius Sports’ Board of Directors authorized a share repurchase program of up to $100m, given the confidence in the long-term profitability and cash flow outlook

LONDON & NEW YORK–(BUSINESS WIRE)–
Genius Sports Limited (NYSE:GENI) (“Genius Sports,” “Genius” or the “Group”), the official data, technology and broadcast partner that powers the global ecosystem connecting sports, betting and media, today announced financial results for its fiscal first quarter ended March 31, 2025.

“This quarter demonstrates the strong execution of our strategic objectives, as we continue our technology distribution, product innovation, and commercial momentum,” said Mark Locke, Genius Sports Co-Founder and CEO. “Our largely fixed cost base, coupled with several durable growth drivers, reinforces our confidence in delivering sustainable growth, profitability, and cash flow in 2025 and beyond.”

*$ in thousands*	Q125			Q124			%
Group Revenue		143,991			119,718			20.3	%
Betting Technology, Content & Services		106,543			73,897			44.2	%
Media Technology, Content & Services		25,893			35,475			(27.0	%)
Sports Technology & Services		11,555			10,346			11.7	%
Group Net Loss		(8,198	)		(25,541	)		67.9	%
Group Adjusted EBITDA		19,775			6,878			187.5	%
Group Adjusted EBITDA Margin		13.7	%		5.7	%		800 bps

Q1 2025 Financial Highlights

Group Revenue: Group revenue increased 20% year-over-year to $144.0 million.
- Betting Technology, Content & Services: Revenue increased 44% year-over-year to $106.5 million, driven primarily by growth in business with existing customers as a result of price increases on contract renewals and renegotiations.
- Media Technology, Content & Services: Revenue decreased 27% year-over-year to $25.9 million, driven by lower programmatic and social advertising services compared to the first quarter ended March 31, 2024.
- Sports Technology & Services: Revenue increased 12% year-over-year to $11.6 million primarily driven by an increase in sales of products built on GeniusIQ technology.
Group Net Loss: Group net loss was ($8.2 million) in the first quarter ended March 31, 2025, representing a $17.3 million improvement compared to the ($25.5 million) loss in the first quarter ended March 31, 2024.
Group Adjusted EBITDA: Group Adjusted (non-GAAP) EBITDA was $19.8 million in the quarter, representing a 188% increase compared to the $6.9 million reported in the first quarter ended March 31, 2024 and 800 basis points of margin expansion.

Q1 2025 Business Highlights

Announced new FANHub partnership with Deep Blue Sports + Entertainment, allowing brands to reach and engage women’s sports fans
Launched data-driven broadcast mode, Data Zone, for Ligue 1 McDonald’s
After the reporting period:
- Genius Sports confirmed as the exclusive provider of official NCAA data to licensed sportsbooks for March Madness and all post-season tournaments through 2032
- Launched BetVision for Soccer to transform live betting and fan engagement for the world’s most popular sporting events
- Premier League introduced semi-automated offside technology after non-live testing and live operation in FA Cup
- FANHub to promote the 2025 Indianapolis 500, following renewed partnership with EchoPoint Media
- Unveiled 3D immersive analysis technology with Performance Studio update, transforming player analysis and development

Financial Outlook

Genius Sports expects to generate Group Revenue of approximately $620 million and Group Adjusted EBITDA of approximately $125 million in 2025. This implies year-over-year Group Revenue and Adj. EBITDA growth of 21% and 46%, respectively. Genius Sports also expects to increase its positive annual cash flow in the full year of 2025.

Share Repurchase Program

The Board of Directors has approved a share repurchase program to repurchase up to $100 million of ordinary shares of Genius Sports, given the strong business performance and confidence in the long-term profitability and cash flow outlook.

The timing and actual number of shares repurchased depends on a variety of factors, including price, general business and market conditions, and alternative investment opportunities, and is subject to the resolution of the shareholders adopted at our Annual General Meeting on December 12, 2024 regarding the conditions for share repurchases and any subsequent shareholder resolutions regarding Genius Sports’ repurchase of its shares. The share repurchase program does not obligate Genius Sports to acquire any particular amount of ordinary shares, and the share repurchase program may be suspended or discontinued at any time at Genius Sports’ discretion. Genius Sports expects to use current cash and cash equivalents and the cash flow it generates from operations to fund the share repurchase program.

Genius Sports Limited Condensed Consolidated Statements of Operations (Unaudited) (Amounts in thousands, except share and per share data)

	Three Months Ended March 31,
	2025			2024
Revenue	$	143,991		$	119,718
Cost of revenue		108,789			106,911
Gross profit		35,202			12,807
Operating expenses:
Sales and marketing		11,413			8,415
Research and development		8,946			6,621
General and administrative		34,535			21,585
Transaction expenses		732			464
Total operating expenses		55,626			37,085
Loss from operations		(20,424	)		(24,278	)
Interest income, net		437			666
Loss on disposal of assets		(12	)		(7	)
Gain (loss) on foreign currency		12,249			(1,087	)
Total other income (expense)		12,674			(428	)
Loss before income taxes		(7,750	)		(24,706	)
Income tax expense		(542	)		(1,100	)
Gain from equity method investment		94			265
Net loss	$	(8,198	)	$	(25,541	)
Loss per share attributable to common stockholders:
Basic and diluted	$	(0.03	)	$	(0.11	)
Weighted average common stock outstanding:
Basic and diluted		248,432,320			229,326,772

Genius Sports Limited Condensed Consolidated Balance Sheets (Amounts in thousands, except share and per share data)

	(Unaudited)
	March 31,			December 31,
	2025			2024
ASSETS
Current assets:
Cash and cash equivalents	$	209,823		$	110,213
Restricted cash, current		25,839			25,026
Accounts receivable, net		81,594			85,491
Contract assets		31,647			30,632
Prepaid expenses		37,331			27,333
Other current assets		10,360			9,902
Total current assets		396,594			288,597
Property and equipment, net		20,214			19,016
Intangible assets, net		115,316			115,539
Operating lease right-of-use assets		14,389			7,488
Goodwill		326,011			326,011
Deferred tax asset		1,244			1,192
Investments		29,313			31,717
Other assets		3,607			2,706
Total assets	$	906,688		$	792,266
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	39,962		$	36,661
Accrued expenses		66,811			79,172
Deferred revenue		58,195			73,388
Current debt		15			19
Operating lease liabilities, current		2,964			3,003
Other current liabilities		2,774			9,327
Total current liabilities		170,721			201,570
Deferred tax liability		13,680			13,802
Operating lease liabilities, non-current		11,444			4,489
Total liabilities		195,845			219,861
Shareholders’ equity
Common stock, $0.01 par value, unlimited shares authorized, 240,982,027 shares issued and 236,876,079 shares outstanding at March 31, 2025; unlimited shares authorized, 215,261,974 shares issued and 211,156,026 shares outstanding at December 31, 2024		2,410			2,153
B Shares, $0.0001 par value, 22,500,000 shares authorized, 14,500,000 shares issued and outstanding at March 31, 2025; 22,500,000 shares authorized, 18,500,000 shares issued and outstanding at December 31, 2024		1			2
Additional paid-in capital		1,856,644			1,700,065
Treasury stock, at cost, 4,105,948 shares at March 31, 2025 and December 31, 2024		(17,653	)		(17,653	)
Accumulated deficit		(1,095,725	)		(1,087,527	)
Accumulated other comprehensive loss		(34,834	)		(24,635	)
Total shareholders’ equity		710,843			572,405
Total liabilities and shareholders’ equity	$	906,688		$	792,266

Genius Sports Limited Condensed Consolidated Statements of Cash Flows (Unaudited) (Amounts in thousands)

	Three Months Ended March 31,
	2025			2024
Cash Flows from operating activities:
Net loss	$	(8,198	)	$	(25,541	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		16,396			21,138
Loss on disposal of assets		12			7
Stock-based compensation		12,835			6,745
Non-cash lease expense		839			1,096
Amortization of contract costs		362			292
Deferred income taxes		(174	)		5
Allowance for expected credit losses		95			243
Gain from equity method investment		(94	)		(265	)
(Gain) loss on foreign currency remeasurement		(12,382	)		715
Changes in operating assets and liabilities
Accounts receivable		3,802			(30,698	)
Contract assets		(1,015	)		12,577
Prepaid expenses		(9,998	)		3,357
Other current assets		(642	)		(5,568	)
Other assets		(1,038	)		2,234
Accounts payable		3,302			(5,533	)
Accrued expenses		(12,361	)		7,532
Deferred revenue		(15,193	)		1,140
Other current liabilities		(6,549	)		(3,005	)
Operating lease liabilities		(797	)		(1,065	)
Net cash used in operating activities		(30,798	)		(14,594	)
Cash flows from investing activities:
Purchases of property and equipment		(4,124	)		(1,453	)
Capitalization of internally developed software costs		(13,349	)		(10,927	)
Distributions from equity method investments		2,498			1,410
Net cash used in investing activities		(14,975	)		(10,970	)
Cash flows from financing activities:
Proceeds from issuance of common shares, net of equity issuance costs		144,000			—
Repayment of loans and mortgage		(5	)		(5	)
Repayment of promissory notes		—			(7,575	)
Net cash provided by (used in) financing activities		143,995			(7,580	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		2,201			134
Net increase (decrease) in cash, cash equivalents and restricted cash		100,423			(33,010	)
Cash, cash equivalents and restricted cash at beginning of period		135,239			125,793
Cash, cash equivalents and restricted cash at end of period	$	235,662		$	92,783
Supplemental disclosure of cash activities:
Cash paid during the period for interest	$	644		$	—
Cash paid during the period for income taxes	$	919		$	322

Genius Sports Limited Reconciliation of U.S. GAAP Net loss to Adjusted EBITDA (Unaudited) (Amounts in thousands)

	Three Months Ended March 31,
	2025			2024
	(dollars, in thousands)
Net loss	$	(8,198	)	$	(25,541	)
Adjusted for:
Net, interest income		(437	)		(666	)
Income tax expense		542			1,100
Amortization of acquired intangibles ⁽¹⁾		2,182			10,204
Other depreciation and amortization⁽²⁾		14,576			11,226
Stock-based compensation⁽³⁾		17,312			7,669
Transaction expenses		732			464
Litigation and related costs⁽⁴⁾		3,368			1,199
(Gain) loss on foreign currency		(12,249	)		1,087
Other ⁽⁵⁾		1,947			136
Adjusted EBITDA	$	19,775		$	6,878

____________
⁽¹⁾	Includes amortization of intangible assets generated through business acquisitions (inclusive of amortization for marketing products, acquired technology, and historical data rights related to the acquisition of a majority interest in Genius in 2018).
⁽²⁾	Includes depreciation of Genius’ property and equipment, amortization of contract costs, and amortization of internally developed software and other intangible assets. Excludes amortization of intangible assets generated through business acquisitions.
⁽³⁾	Includes restricted shares, stock options, equity-settled restricted share units, cash-settled restricted share units and equity-settled performance-based restricted share units granted to employees and directors (including related employer payroll taxes).
⁽⁴⁾	Includes litigation and related costs incurred by the Company relating to discrete and non-routine legal proceedings that are not part of the normal operations of the Company’s business. For the three months ended March 31, 2025 and 2024, legal proceedings included Sportscastr litigation, dMY litigation and Spirable litigation (as described in Item 3.D “Risks Related to Legal Matters and Regulations” in the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on March 14, 2025 (the “2024 20-F”)). All other legal proceedings are expensed as part of our on-going operations and included in general and administrative expenses.
⁽⁵⁾	Includes severance costs and non-recurring compensation payments, expenses incurred related to earn-out payments on historical acquisitions, gain/loss on disposal of assets, and professional fees for finance transformation project.

Webcast and Conference Call Details

Genius Sports management will host a conference call and webcast today at 8:00AM ET to discuss the Group’s first quarter results.

The live conference call and webcast may be accessed on the Genius Sports investor relations website at investors.geniussports.com along with Genius’ earnings press release and related materials. A replay of the webcast will be available on the website within 24 hours after the call.

About Genius Sports

Genius Sports is the official data, technology and broadcast partner that powers the global ecosystem connecting sports, betting and media. Our technology is used in over 150 countries worldwide, creating highly immersive products that enrich fan experiences for the entire sports industry.

We are the trusted partner to over 400 sports organizations, including many of the world’s largest leagues and federations such as the NFL, EPL, FIBA, NCAA, NASCAR, AFA and Liga MX.

Genius Sports is uniquely positioned through cutting-edge technology, scale and global reach to support our partners. Our innovative use of big data, computer vision, machine learning, and augmented reality, connects the entire sports ecosystem from the rights holder all the way through to the fan.

Non-GAAP Financial Measures

This press release includes non-GAAP financial measures not presented in accordance with U.S. GAAP. A reconciliation of the most comparable GAAP measure to its non-GAAP measure is included above.

Adjusted EBITDA

We present Group adjusted EBITDA and Group adjusted EBITDA margin, non-GAAP performance measures, to supplement our results presented in accordance with U.S. GAAP. Group Adjusted EBITDA is defined as earnings before interest, income tax, depreciation and amortization and other items that are unusual or not related to Genius’ revenue-generating operations, including but not limited to stock-based compensation expense (including related employer payroll taxes), litigation and related costs, transaction expenses and gain or loss on foreign currency.

Group Adjusted EBITDA is used by management to evaluate Genius’ core operating performance on a comparable basis and to make strategic decisions. Genius believes Group Adjusted EBITDA is useful to investors for the same reasons as well as in evaluating Genius’ operating performance against competitors, which commonly disclose similar performance measures. However, Genius’ calculation of Group Adjusted EBITDA may not be comparable to other similarly titled performance measures of other companies. Group Adjusted EBITDA and Group Adjusted EBITDA margin are not intended to be a substitute for any US GAAP financial measure.

We do not provide a reconciliation of Group adjusted EBITDA to consolidated net income/(loss) on a forward-looking basis because we are unable to forecast certain items required to develop meaningful comparable GAAP financial measures without unreasonable efforts. These items are difficult to predict and estimate and are primarily dependent on future events. The impact of these items could be significant to our projections.

Forward-Looking Statements

This press release contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. All statements other than statements of historical facts are forward-looking statements. These forward-looking statements include information about our possible or assumed future results of operations or our performance. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “estimates,” and variations of such words and similar expressions are intended to identify such forward looking statements. Although we believe that the forward-looking statements contained in this press release are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including but not limited to: risks related to our reliance on relationships with sports organizations and the potential loss of such relationships or failure to renew or expand existing relationships; fraud, corruption or negligence related to sports events, or by our employees or contracted statisticians; risks related to changes in domestic and foreign laws and regulations or their interpretation; compliance with applicable data protection and privacy laws; pending litigation and investigations; the failure to protect or enforce our proprietary and intellectual property rights; claims for intellectual property infringement; our reliance on information technology; elevated interest rates and inflationary pressures, including fluctuating foreign currency and exchange rates; risks related to domestic and international political and macroeconomic uncertainty; our share repurchase program; and other factors included under the heading “Risk Factors” in the 2024 20-F.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Although we believe that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements contained in this press release, or the documents to which we refer readers in this press release, to reflect any change in our expectations with respect to such statements or any change in events, conditions or circumstances upon which any statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250506973651/en/

Media

Chris Dougan, Chief Communications Officer

+1 (202) 766-4430

[email protected]

Investors

Brandon Bukstel, Investor Relations Manager

+1 (954)-554-7932

[email protected]

KEYWORDS: Europe United States United Kingdom North America New York

INDUSTRY KEYWORDS: Technology Licensing (Sports) Casino/Gaming Sports General Sports Entertainment Networks General Entertainment Internet Data Management

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May 6, 2025 7:03 am

Novanta Announces Financial Results for the First Quarter 2025

Novanta Announces Financial Results for the First Quarter 2025

First Quarter 2025 GAAP Revenue increased 1% to $233 million
First Quarter 2025 GAAP Diluted Earnings Per Share of $0.59 and Adjusted EPS of $0.74
First Quarter 2025 GAAP Net Income increased 45% to $21 million
First Quarter 2025 Adjusted EBITDA increased 1% to $50 million
First Quarter 2025 Operating Cash Flow of $32 million
Company reiterates Full Year 2025 Adjusted EBITDA guidance

BOSTON–(BUSINESS WIRE)–
Novanta Inc. (Nasdaq: NOVT) (“Novanta” or the “Company”), a trusted technology partner to medical and advanced technology equipment manufacturers, today reported financial results for the first quarter 2025.

Financial Highlights	Three Months Ended
(In millions, except per share amounts)	March 28,		March 29,
	2025		2024
GAAP
Revenue	$	233.4	$	230.9
Operating Income	$	32.4	$	25.6
Net Income	$	21.2	$	14.7
Diluted EPS	$	0.59	$	0.41
Non-GAAP*
Adjusted Operating Income	$	39.1	$	40.1
Adjusted Diluted EPS	$	0.74	$	0.74
Adjusted EBITDA	$	50.0	$	49.7
*Reconciliations of GAAP to non-GAAP financial measures, as well as definitions for the non-GAAP financial measures included in this press release and the reasons for their use, are presented below.

“I am proud to report that the Novanta team generated solid results in the first quarter that met or exceeded expectations, against the backdrop of a highly dynamic macroeconomic environment,” said Matthijs Glastra, Chair and Chief Executive of Novanta. “Our diversified and resilient portfolio, strong balance sheet, and an execution-focused culture positions us well and enables us to navigate these uncertainties while capitalizing on growth opportunities over both the short and long-term. Finally, in the First Quarter our new product launches remain on track for the year, and we successfully closed a tuck-in acquisition in April.”

First Quarter

During the first quarter of 2025, Novanta generated GAAP revenue of $233.4 million, an increase of 1.1% or $2.5 million, versus the first quarter of 2024. Year-over-year changes in foreign currency exchange rates adversely impacted revenue by 0.6% or $1.5 million, during the first quarter of 2025. Organic Revenue Growth, which excludes the net impact of acquisitions and changes in foreign currency exchange rates, was 1.7% for the first quarter of 2025 (see “Organic Revenue Growth” in the non-GAAP reconciliations below).

In the first quarter of 2025, GAAP operating income was $32.4 million, compared to $25.6 million in the first quarter of 2024. GAAP net income increased 45% to $21.2 million in the first quarter of 2025, compared to $14.7 million in the first quarter of 2024. GAAP diluted earnings per share (“EPS”) was $0.59 in the first quarter of 2025, compared to $0.41 in the first quarter of 2024. Diluted weighted average shares outstanding was 36.1 million in the first quarter of 2025.

Adjusted Diluted EPS was $0.74 in the first quarter of 2025, compared to $0.74 in the first quarter of 2024. Adjusted EBITDA increased 1% to $50.0 million in the first quarter of 2025, compared to $49.7 million in the first quarter of 2024.

Operating cash flow for the first quarter of 2025 was $31.7 million, compared to $32.8 million for the first quarter of 2024.

Financial Guidance

“Novanta has a solid track record of delivering and even accelerating out of uncertain environments by overcoming challenges and seizing opportunities. We are confident in our ability to excel by utilizing the Novanta Growth System, which emphasizes innovation, operational excellence, strategic alignment, and winning in high-growth markets. Our focus is on near-term execution, including launching new breakthrough products, while at the same time investing in and advancing our growth strategy in markets with long-term secular growth trends like precision robotics and automation, minimally invasive and robotic surgery, and precision medicine,” said Matthijs Glastra.

“Due to the limited visibility of rapid trade policy changes, and the heightened uncertainty caused by the global trade disruptions, we are in an environment that makes long-term revenue predictions challenging beyond the second quarter. However, we are confident in our ability to adapt to the challenges and maintain the company’s strong execution to deliver on our full year EBITDA commitments. As such, we expect to implement proactive cost containment actions by quarter-end, targeting approximately $20 million in annualized cost savings, to offset trade policy changes, potential purchasing deferrals by our customers due to reciprocal tariffs on our products, as well as global trade disruptions.”

With more near-term visibility, in the second quarter of 2025, the Company expects GAAP revenue of approximately $230 million to $240 million. The Company expects Adjusted Gross Profit Margin to be in the range of 45.5% to 46.5%. The Company expects Adjusted EBITDA to be in the range of $50 million to $55 million and Adjusted Diluted EPS to be in the range of $0.68 to $0.78. The Company’s guidance assumes no significant changes in foreign exchange rates.

Novanta provides earnings guidance on a non-GAAP basis and does not provide earnings guidance on a GAAP basis, with the exception of GAAP revenue guidance. A reconciliation of the Company’s forward-looking Adjusted Gross Profit Margin, Adjusted EBITDA and Adjusted Diluted EPS guidance to the most directly comparable GAAP financial measures is not provided because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including acquisitions and related expenses; impact of purchase price allocations for recently completed acquisitions; future changes in the fair value of contingent considerations; future restructuring expenses; foreign exchange gains/(losses); significant discrete income tax expenses (benefits); benefits or expenses associated with the completion of tax audits; divestitures and related expenses; gains and losses from sale of real estate assets; costs related to product line closures; intangible asset impairment charges and related asset write-offs; and other charges reflected in the Company’s reconciliation of historical non-GAAP financial measures, the amounts of which, based on past experience, could be material. For additional information regarding Novanta’s non-GAAP financial measures, see “Use of Non-GAAP Financial Measures” below.

Conference Call Information

The Company will host a conference call on Tuesday, May 6, 2025 at 10:00 a.m. ET to discuss these results and to provide a business update. To access the call, please dial (888) 346-3959 prior to the scheduled conference call time. Alternatively, the conference call can be accessed online via a live webcast on the Events & Presentations page of the Investors section of the Company’s website at www.novanta.com.

A replay of the audio webcast will be available approximately three hours after the conclusion of the call in the Investor Relations section of the Company’s website at www.novanta.com. The replay will remain available until Monday, June 30, 2025.

Use of Non-GAAP Financial Measures

The non-GAAP financial measures used in this press release are Organic Revenue Growth, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Income Before Income Taxes, Adjusted Income Tax Provision/(Benefit) and Effective Tax Rate, Adjusted Net Income, Adjusted Diluted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Free Cash Flow as a Percentage of Net Income, and Net Debt.

The Company believes that these non-GAAP financial measures provide useful and supplementary information to investors regarding the operating performance of the Company. It is management’s belief that these non-GAAP financial measures would be particularly useful to investors because of the significant changes that have occurred outside of the Company’s day-to-day business in accordance with the execution of the Company’s strategy. This strategy includes streamlining the Company’s existing operations through site and functional consolidations, strategic divestitures and product line closures, expanding the Company’s business through significant internal investments, and broadening the Company’s product and service offerings through acquisitions of innovative and complementary technologies and solutions. The financial impact of certain elements of these activities, particularly acquisitions, divestitures, and site and functional restructurings, is often large relative to the Company’s overall financial performance and can adversely affect the comparability of its operating results and investors’ ability to analyze the business from period to period.

The Company’s Adjusted EBITDA, Organic Revenue Growth and Adjusted Gross Profit Margin are used by management to evaluate operating performance, communicate financial results to the Board of Directors, benchmark results against historical performance and the performance of peers, and evaluate investment opportunities, including acquisitions and divestitures. In addition, Adjusted EBITDA, Organic Revenue Growth and Adjusted Gross Profit Margin are used to determine bonus payments for senior management and employees. The Company has also used in the past, and may use in the future, Adjusted Diluted EPS and Adjusted EBITDA as performance targets for certain performance-based restricted stock units. Accordingly, the Company believes that these non-GAAP financial measures provide greater transparency and insight into management’s method of analysis.

Non-GAAP financial measures should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material effect on the Company’s reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company’s financial results. The non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, GAAP financial measures. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release.

Safe Harbor and Forward-Looking Information

Certain statements in this release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements contained in this news release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as “expect,” “intend,” “anticipate,” “estimate,” “believe,” “future,” “could,” “should,” “plan,” “aim,” and other similar expressions. These forward-looking statements include, but are not limited to, statements regarding anticipated financial performance and financial position, including our financial outlook for the full year 2025 and second quarter of 2025; expectations for our end markets and market position; macroeconomic expectations; our competitive position, including our positioning for long-term growth, capital spending and momentum from new product launches; and other statements that are not historical facts.

These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various important factors, including, but not limited to, the following: economic and political conditions and the effects of these conditions on our customers’ businesses, capital expenditures and level of business activities; our dependence upon our ability to respond to fluctuations in product demand; our ability to continuously innovate, to introduce new products in a timely manner, and to manage transitions to new product innovations effectively; customer order timing and other similar factors; disruptions or breaches in security of our or our third-party providers’ information technology systems; risks associated with our operations in foreign countries; our increased use of outsourcing in foreign countries; risks associated with increased outsourcing of components manufacturing; our exposure to increased tariffs, trade restrictions or taxes on our products; our ability to contain or reduce costs; violations of our intellectual property rights and our ability to protect our intellectual property against infringement by third parties; risk of losing our competitive advantage; our failure to successfully integrate recent and future acquisitions into our business; our ability to attract and retain key personnel; our restructuring and realignment activities; product defects or problems integrating our products with other vendors’ products; disruptions in the supply of certain key components and other goods from our suppliers; our failure to accurately forecast component and raw material requirements leading to additional costs and significant delays in shipments; production difficulties and product delivery delays or disruptions; our exposure to extensive medical device regulations, which may impede or hinder the approval, certification or sale of our products and, in some cases, may ultimately result in an inability to obtain approval or certification of certain products or may result in the recall or seizure of previously approved or certified products; potential penalties for violating foreign and U.S. federal and state healthcare laws and regulations; impact of healthcare industry cost containment and healthcare reform measures; changes in governmental regulations related to our business or products; actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards, and other requirements; our failure to implement new information technology systems successfully; changes in foreign currency rates; our failure to realize the full value of our intangible assets; our reliance on original equipment manufacturer customers; the loss of sales, or significant reduction in orders from, any major customers; increasing scrutiny and changing expectations from investors, customers, governments and other stakeholders and third parties with respect to corporate sustainability policies and practices; the effects of climate change and related regulatory responses; our exposure to the credit risk of some of our customers and in weakened markets; being subject to U.S. federal income taxation even though we are a non-U.S. corporation; changes in tax laws and fluctuations in our effective tax rates; any need for additional capital to adequately respond to business challenges or opportunities and repay or refinance our existing indebtedness, which may not be available on acceptable terms or at all; our existing indebtedness limiting our ability to engage in certain activities; volatility in the market price for our common shares; and our failure to maintain appropriate internal controls in the future.

Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect the Company’s operating results and financial condition are discussed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated by our subsequent filings with the Securities and Exchange Commission. Such statements are based on the Company’s beliefs and assumptions and on information currently available to the Company. The Company disclaims any obligation to publicly update or revise any such forward-looking statements as a result of developments occurring after the date of this document except as required by law.

About Novanta

Novanta is a leading global supplier of core technology solutions that give medical, life science, and advanced industrial original equipment manufacturers a competitive advantage. We combine deep proprietary expertise and competencies in precision medicine, precision manufacturing, robotics and automation, and advanced surgery with a proven ability to solve complex technical challenges. This enables Novanta to engineer proprietary technology solutions that deliver extreme precision and performance, tailored to our customers’ demanding applications. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation, the Novanta Growth System, and our customers’ success. Novanta’s common shares are quoted on Nasdaq under the ticker symbol “NOVT.”

More information about Novanta is available on the Company’s website at www.novanta.com. For additional information, please contact Novanta Investor Relations at (781) 266-5137 or [email protected].

NOVANTA INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of U.S. dollars or shares, except per share amounts) (Unaudited)

	Three Months Ended
	March 28,			March 29,
	2025			2024
Revenue	$	233,366		$	230,916
Cost of revenue		129,012			130,500
Gross profit		104,354			100,416
Operating expenses:
Research and development and engineering		23,238			23,246
Selling, general and administrative		45,596			43,530
Amortization of purchased intangible assets		5,554			5,750
Restructuring, acquisition, and related costs		(2,455	)		2,283
Total operating expenses		71,933			74,809
Operating income		32,421			25,607
Interest income (expense), net		(5,644	)		(8,254	)
Foreign exchange transaction gains (losses), net		(368	)		(321	)
Other income (expense), net		9			(116	)
Income before income taxes		26,418			16,916
Income tax provision (benefit)		5,210			2,240
Net Income	$	21,208		$	14,676

Earnings per common share:
Basic	$	0.59		$	0.41
Diluted	$	0.59		$	0.41

Weighted average common shares outstanding—basic		36,024			35,914
Weighted average common shares outstanding—diluted		36,130			36,127

NOVANTA INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of U.S. dollars) (Unaudited)

	March 28,		December 31,
	2025		2024
ASSETS
Current Assets
Cash and cash equivalents	$	106,045	$	113,989
Accounts receivable, net		164,201		151,026
Inventories		145,435		144,606
Prepaid expenses and other current assets		18,457		24,027
Total current assets		434,138		433,648
Property, plant and equipment, net		112,514		113,135
Operating lease assets		41,321		42,908
Intangible assets, net		177,724		185,844
Goodwill		589,054		584,098
Other assets		30,705		28,878
Total assets	$	1,385,456	$	1,388,511
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Current portion of long-term debt	$	4,852	$	4,691
Accounts payable		82,513		76,890
Accrued expenses and other current liabilities		82,225		86,210
Total current liabilities		169,590		167,791
Long-term debt		385,279		411,949
Operating lease liabilities		38,694		40,548
Other long-term liabilities		22,138		22,525
Total liabilities		615,701		642,813
Stockholders’ Equity:
Total stockholders’ equity		769,755		745,698
Total liabilities and stockholders’ equity	$	1,385,456	$	1,388,511

NOVANTA INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of U.S. dollars) (Unaudited)

	Three Months Ended
	March 28,			March 29,
	2025			2024
Cash flows from operating activities:
Net Income	$	21,208		$	14,676
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		13,563			12,929
Share-based compensation		7,100			6,077
Deferred income taxes		(2,393	)		(3,711	)
Loss (gain) on disposal of fixed assets		(4,367	)		—
Other		1,150			4,513
Changes in assets and liabilities which (used)/provided cash, excluding effects from business acquisitions:
Accounts receivable		(12,188	)		(4,162	)
Inventories		(61	)		(3,781	)
Other operating assets and liabilities		7,672			6,288
Net cash provided by operating activities		31,684			32,829
Cash flows from investing activities:
Cash paid for business acquisition, net of working capital adjustments		—			(191,200	)
Purchases of property, plant and equipment		(4,284	)		(6,415	)
Proceeds from sale of property, plant and equipment		5,537			—
Net cash provided by (used in) investing activities		1,253			(197,615	)
Cash flows from financing activities:
Borrowings under revolving credit facilities		—			198,000
Repayments under term loan and revolving credit facilities		(29,719	)		(35,976	)
Payments of withholding taxes from share-based awards		(6,669	)		(8,385	)
Repurchases of common shares		(6,157	)		—
Other financing activities		(186	)		(176	)
Net cash provided by (used in) financing activities		(42,731	)		153,463
Effect of exchange rates on cash and cash equivalents		1,850			(208	)
Increase (decrease) in cash and cash equivalents		(7,944	)		(11,531	)
Cash and cash equivalents, beginning of period		113,989			105,051
Cash and cash equivalents, end of period	$	106,045		$	93,520

NOVANTA INC. Revenue by Reportable Segment (In thousands of U.S. dollars) (Unaudited)

	Three Months Ended
	March 28,		March 29,
	2025		2024
Revenue
Automation Enabling Technologies	$	123,167	$	117,389
Medical Solutions		110,199		113,527
Total	$	233,366	$	230,916

NOVANTA INC. Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands of U.S. dollars) (Unaudited)

Adjusted Gross Profit and Adjusted Gross Profit Margin by Reportable Segment (Non-GAAP):

	Three Months Ended
	March 28,			March 29,
	2025			2024
Automation Enabling Technologies
Gross Profit (GAAP)	$	59,386		$	55,502
Gross Profit Margin (GAAP)		48.2	%		47.3	%
Amortization of intangible assets		1,359			1,569
Adjusted Gross Profit (Non-GAAP)	$	60,745		$	57,071
Adjusted Gross Profit Margin (Non-GAAP)		49.3	%		48.6	%

Medical Solutions
Gross Profit (GAAP)	$	45,961		$	46,222
Gross Profit Margin (GAAP)		41.7	%		40.7	%
Amortization of intangible assets		2,202			2,123
Acquisition fair value adjustments		—			2,777
Adjusted Gross Profit (Non-GAAP)	$	48,163		$	51,122
Adjusted Gross Profit Margin (Non-GAAP)		43.7	%		45.0	%

Unallocated
Gross Profit (GAAP)	$	(993	)	$	(1,308	)
Adjusted Gross Profit (Non-GAAP)	$	(993	)	$	(1,308	)

Novanta Inc.
Gross Profit (GAAP)	$	104,354		$	100,416
Gross Profit Margin (GAAP)		44.7	%		43.5	%
Amortization of intangible assets		3,561			3,692
Acquisition fair value adjustments		—			2,777
Adjusted Gross Profit (Non-GAAP)	$	107,915		$	106,885
Adjusted Gross Profit Margin (Non-GAAP)		46.2	%		46.3	%

NOVANTA INC. Reconciliation of GAAP to Non-GAAP Financial Measures (Amounts in thousands except per share amounts) (Unaudited)

Adjusted Operating Income and Adjusted Diluted EPS (Non-GAAP):

	Three Months Ended March 28, 2025
	Operating Income			Operating Margin			Income Before Income Taxes			Income Tax Provision / (Benefit)		Effective Tax Rate			Net Income		Diluted EPS
GAAP results	$	32,421			13.9	%	$	26,418		$	5,210		19.7	%	$	21,208	$	0.59
Non-GAAP Adjustments:
Amortization of intangible assets		9,115			3.9	%		9,115
Restructuring costs		(3,005	)		(1.3	)%		(3,005	)
Acquisition and related costs		550			0.2	%		550
Foreign exchange transaction (gains) losses, net								368
Tax effect of non-GAAP adjustments											1,006
Non-GAAP tax adjustments											446
Total non-GAAP adjustments		6,660			2.8	%		7,028			1,452					5,576		0.15

Adjusted results (Non-GAAP)	$	39,081			16.7	%	$	33,446		$	6,662		19.9	%	$	26,784	$	0.74

Weighted average shares outstanding – Diluted																		36,130

NOVANTA INC. Reconciliation of GAAP to Non-GAAP Financial Measures (Amounts in thousands except per share amounts) (Unaudited)

Adjusted Operating Income and Adjusted Diluted EPS (Non-GAAP):

	Three Months Ended March 29, 2024
	Operating Income		Operating Margin			Income Before Income Taxes		Income Tax Provision / (Benefit)			Effective Tax Rate			Net Income		Diluted EPS
GAAP results	$	25,607		11.1	%	$	16,916	$	2,240			13.2	%	$	14,676	$	0.41
Non-GAAP Adjustments:
Amortization of intangible assets		9,442		4.1	%		9,442
Restructuring costs		548		0.2	%		548
Acquisition and related costs		1,735		0.8	%		1,735
Acquisition fair value adjustments		2,777		1.2	%		2,777
Foreign exchange transaction (gains) losses, net							321
Tax effect of non-GAAP adjustments									2,963
Non-GAAP tax adjustments									(98	)
Total non-GAAP adjustments		14,502		6.3	%		14,823		2,865						11,958		0.33

Adjusted results (Non-GAAP)	$	40,109		17.4	%	$	31,739	$	5,105			16.1	%	$	26,634	$	0.74

Weighted average shares outstanding – Diluted																	36,127

NOVANTA INC. Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands of U.S. dollars) (Unaudited)

Adjusted EBITDA (Non-GAAP):

	Three Months Ended
	March 28,			March 29,
	2025			2024
Net Income (GAAP)	$	21,208		$	14,676
Net Income Margin		9.1	%		6.4	%
Interest (income) expense, net		5,644			8,254
Income tax provision (benefit)		5,210			2,240
Depreciation and amortization		13,563			12,929
Share-based compensation		7,100			6,077
Restructuring, acquisition and related costs		(3,106	)		2,298
Acquisition fair value adjustments		—			2,777
Other, net		359			437
Adjusted EBITDA (Non-GAAP)	$	49,978		$	49,688
Adjusted EBITDA Margin (Non-GAAP)		21.4	%		21.5	%

Organic Revenue Growth (Non-GAAP):

	Three Months Ended March 29, 2025
	Compared to
	Three Months Ended March 28, 2024
Reported Revenue Growth/(Decline) (GAAP)		1.1	%
Less: Change attributable to acquisitions		(—	)%
Plus: Change due to foreign currency		0.6	%
Organic Revenue Growth/(Decline) (Non-GAAP)		1.7	%

Net Debt (Non-GAAP):

	March 28,			December 31,
	2025			2024
Total Debt (GAAP)	$	390,131		$	416,640
Plus: Deferred financing costs		2,228			2,519
Gross Debt		392,359			419,159
Less: Cash and cash equivalents		(106,045	)		(113,989	)
Net Debt (Non-GAAP)	$	286,314		$	305,170

Free Cash Flow (Non-GAAP):

	Three Months Ended
	March 28,			March 29,
	2025			2024
Net Cash Provided by Operating Activities (GAAP)	$	31,684		$	32,829
Less: Purchases of property, plant and equipment		(4,284	)		(6,415	)
Plus: Proceeds from sale of property, plant and equipment		5,537			—
Free Cash Flow (Non-GAAP)	$	32,937		$	26,414
Net Income (GAAP)	$	21,208		$	14,676
Net Cash Provided by Operating Activities as a Percentage of Net Income		149.4	%		223.7	%
Free Cash Flow as a Percentage of Net Income		155.3	%		180.0	%

Non-GAAP Financial Measures

The following provides additional explanations for non-GAAP financial measures used by the Company, including explanations for certain non-GAAP adjustments that may not be present in the quarterly disclosures included in the current earnings release but have been used by the Company in the two most recent fiscal years. See the tables above for the calculations of the non-GAAP financial measures used in this earnings release.

Organic Revenue Growth

The Company defines the term “organic revenue” as revenue excluding the impact from business acquisitions, divestitures, product line discontinuations, and the effect of foreign currency translation. The Company uses the related term “organic revenue growth” to refer to the financial performance metric of comparing current period organic revenue with the reported revenue of the corresponding period in the prior year. The Company believes that this non-GAAP financial measure, when taken together with our GAAP financial measures, allows the Company and its investors to better measure the Company’s performance and evaluate long-term performance trends. Organic revenue growth also facilitates easier comparisons of the Company’s performance with prior and future periods and relative comparisons to its peers. The Company excludes the effect of foreign currency translation from these measures because foreign currency translation is subject to volatility and can obscure underlying business trends. The Company excludes the effect of acquisitions and divestitures because these activities can vary dramatically between reporting periods and between the Company and its peers, which the Company believes makes comparisons of long-term performance trends difficult for management and investors. Organic Revenue Growth is also used as a performance metric to determine bonus payments for senior management and employees.

Adjusted Gross Profit and Adjusted Gross Profit Margin

The calculation of Adjusted Gross Profit and Adjusted Gross Profit Margin excludes amortization of acquired intangible assets and amortization of inventory fair value adjustments related to business acquisitions because: (i) the amounts are non-cash; (ii) the Company cannot influence the timing and amount of future expense recognition; and (iii) excluding such expenses provides investors and management better visibility into the underlying trends and performance of our businesses. The Company also excludes inventory related charges associated with product line closures as these costs occurred outside of the Company’s day-to-day business for the reasons described above in the introductory paragraphs of the “Use of Non-GAAP Financial Measures.”

Adjusted Operating Income and Adjusted Operating Margin

The calculation of Adjusted Operating Income and Adjusted Operating Margin excludes amortization of acquired intangible assets and amortization of inventory fair value adjustments related to business acquisitions for the reasons described above for Adjusted Gross Profit and Adjusted Gross Profit Margin. The Company also excludes restructuring, and acquisition and related costs due to the significant changes that have occurred outside of the Company’s day-to-day business for the reasons described above in the introductory paragraphs of the “Use of Non-GAAP Financial Measures.”

Adjusted Income Before Income Taxes

The calculation of Adjusted Income Before Income Taxes excludes amortization of acquired intangible assets, amortization of inventory fair value adjustments related to business acquisitions, and restructuring, and acquisition and related costs for the reasons described above for Adjusted Operating Income and Adjusted Operating Margin. The Company also excludes foreign exchange transaction gains (losses) from the calculation of Adjusted Income Before Income Taxes as the Company cannot fully influence the timing and amount of foreign exchange transaction gains (losses).

Non-GAAP Income Tax Provision/(Benefit) and Effective Tax Rate

Non-GAAP Income Tax Provision/(Benefit) and Effective Tax Rate are calculated based on the Adjusted Income Before Income Taxes by jurisdiction, the applicable tax rates in effect for the respective jurisdictions and the income tax effect of non-GAAP adjustments discussed above. In addition, the Company excludes significant discrete income tax expenses (benefits) related to releases of valuation allowances and uncertain tax positions not related to current year activity, tax audits, certain changes in tax laws, and acquisition related tax planning actions on the Company’s effective tax rate.

Adjusted Net Income

Because Income Before Income Taxes is included in determining Net Income, the calculation of Adjusted Net Income also excludes amortization of acquired intangible assets, amortization of inventory fair value adjustments related to business acquisitions, restructuring, acquisition and related costs, and foreign exchange transaction gains (losses) for the reasons described above for Adjusted Income Before Income Taxes. In addition, the Company excludes (i) significant discrete income tax expenses (benefits) related to releases of valuation allowances and uncertain tax positions, tax audits or amendments to prior year returns, certain changes in tax laws, and acquisition related tax planning actions on the Company’s effective tax rate; and (ii) the income tax effect of non-GAAP adjustments discussed above.

Adjusted Diluted EPS

Because Net Income is used in the calculation of Diluted EPS, Adjusted Diluted EPS excludes: (i) amortization of acquired intangible assets; (ii) amortization of inventory fair value adjustments related to business acquisitions; (iii) restructuring, acquisition and related costs; (iv) foreign exchange transaction gains (losses); (v) significant discrete income tax expenses (benefits) related to releases of valuation allowances, uncertain tax positions, tax audits or amendments to prior year returns, certain changes in tax laws, and acquisition related tax planning actions on the Company’s effective tax rate; and (vi) the income tax effect of non-GAAP adjustments for the reasons described above for Adjusted Net Income.

Adjusted EBITDA and Adjusted EBITDA Margin

The Company defines Adjusted EBITDA as income before deducting interest (income) expense, income tax provision (benefit), depreciation, amortization, non-cash share-based compensation, restructuring, acquisition and related costs, amortization of inventory fair value adjustments related to business acquisitions, other non-operating (income) expense items, including foreign exchange transaction (gains) losses and net periodic pension costs of the Company’s frozen U.K. defined benefit pension plan for the reasons described above in the introductory paragraphs of the “Use of Non-GAAP Financial Measures.”

Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of Revenue.

In evaluating Adjusted EBITDA and Adjusted EBITDA Margin, you should be aware that in the future the Company may incur expenses that are the same as, or similar to, some of the adjustments in this presentation.

Free Cash Flow and Free Cash Flow as a Percentage of Net Income

The Company defines Free Cash Flow as net cash provided by operating activities less cash paid for purchases of property, plant and equipment and plus cash proceeds from sales of property, plant and equipment. Free Cash Flow as a Percentage of Net Income is defined as Free Cash Flow divided by Net Income. Management believes these non-GAAP financial measures are important indicators of the Company’s liquidity as well as its ability to service its outstanding debt and to fund future growth.

Net Debt

The Company defines Net Debt as its total debt as reported on the consolidated balance sheet plus unamortized deferred financing costs and less its cash and cash equivalents as of the end of the period presented. Management uses Net Debt to monitor the Company’s outstanding debt obligations that could not be satisfied by its cash and cash equivalents on hand.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250506374387/en/

Novanta Inc.

Investor Relations Contact:

Ray Nash

(781) 266-5137

KEYWORDS: United States North America Canada Massachusetts

INDUSTRY KEYWORDS: Other Manufacturing Finance General Health Health Medical Devices Health Technology Professional Services Manufacturing

MEDIA:

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May 6, 2025 7:03 am

HeartBeam Announces Two New U.S. Patents, Powering Forward Its Robust Patent Portfolio

HeartBeam Announces Two New U.S. Patents, Powering Forward Its Robust Patent Portfolio

First patent significantly advances intellectual property for HeartBeam’s credit card-sized ECG device, bolstering both the defensive and offensive moat around the company’s core technology
Second patent expands the use of risk-based diagnostic algorithms into HeartBeam’s product portfolio around wearable devices
HeartBeam now has 20 issued patents worldwide, cementing Company’s leadership in cardiac monitoring innovation

SANTA CLARA, Calif.–(BUSINESS WIRE)–HeartBeam, Inc. (NASDAQ: BEAT), a medical technology company focused on transforming cardiac care by providing powerful personalized insights, today announced the addition of two new U.S. patents, reinforcing its core intellectual property position and enabling future product extensions. The patents reinforce HeartBeam’s groundbreaking innovations and further solidify the Company’s intellectual property (IP) footprint in cardiac monitoring technology that bring advanced cardiac insights to patients and clinicians.

The first patent protects IP around HeartBeam’s credit card-sized, cable-free 3D ECG device. Designed for ease of use, the device features chest and finger electrodes to capture high-fidelity electrical signals in 3D (by capturing 3 non-coplanar directions) – enabling patients to record their symptoms the moment they occur, wherever they are. The signals are then synthesized into a familiar 12-lead ECG using a personalized transformational matrix. The 12-lead ECG synthesis software is currently under review with the FDA. Data from the VALID-ECG pivotal study supporting the FDA submission was presented at the Heart Rhythm Society conference in April 2025.

The second patent protects HeartBeam’s rhythm analysis algorithm, which distinguishes between sinus rhythm, atrial fibrillation, and other arrhythmias using continuous signal input. Designed to operate on any cardiac monitoring system including wearables, the algorithm enables risk-based escalation by detecting anomalies during passive monitoring and prompting the user to collect high-fidelity 3D ECG signals with HeartBeam’s credit card-sized device, enabling synthesis of a 12-lead ECG.

“HeartBeam’s vision is to make it easier for patients and physicians to monitor and diagnose cardiac symptoms outside of a medical facility. The new patents add to our growing IP portfolio, enabling us to expand the reach and impact of our groundbreaking 3D ECG technology as we strive to transform the future of cardiac care,” said Robert Eno, Chief Executive Officer of HeartBeam.

With these two new U.S. patents, HeartBeam now holds 20 issued US and international patents, as well as 2 allowed patents and 32 pending patents, adding to an already robust IP portfolio that supports the company’s differentiated position in remote cardiac diagnostics. These innovations lay the groundwork for future capabilities such as AI-driven classification algorithms and ischemia detection, further extending HeartBeam’s potential to provide unprecedented cardiac insights to individuals and physicians.

About HeartBeam, Inc.

HeartBeam, Inc. (NASDAQ: BEAT) is a medical technology company dedicated to transforming the detection and monitoring of critical cardiac conditions. The Company is creating the first ever cable-free device capable of collecting ECG signals in 3D, from 3 non-co-planar directions, and synthesizing the signals into a 12-lead ECG. This platform technology is designed for portable devices that can be used wherever the patient is to deliver actionable heart intelligence. Physicians will be able to identify cardiac health trends and acute conditions and direct patients to the appropriate care – all outside of a medical facility, thus redefining the future of cardiac health management. HeartBeam’s 3D ECG technology received FDA clearance for arrhythmia assessment in December 2024. The Company holds 20 issued patents related to technology enablement. For additional information, visit HeartBeam.com.

Forward-Looking Statements

All statements in this release that are not based on historical fact are “forward-looking statements.” While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management’s Discussion and Analysis of Financial Condition and Results of Operations sections of our Forms 10-K, 10-Q and other reports filed with the SEC and available at www.sec.gov. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250506303008/en/

Investor Relations Contact:

Chris Tyson

Executive Vice President

MZ North America

Direct: 949-491-8235

[email protected]

www.mzgroup.us

Media Contact:

[email protected]

KEYWORDS: United States North America California

INDUSTRY KEYWORDS: Cardiology Software Hardware Health Medical Devices Health Technology Wearables/Mobile Technology Technology

MEDIA:

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May 6, 2025 7:02 am

xAI, TWG Global and Palantir Unite to Redefine Financial Services through Enterprise AI

xAI, TWG Global and Palantir Unite to Redefine Financial Services through Enterprise AI

This pioneering approach enables businesses to embed AI at the core of their organizations to drive productivity, growth and value

SAN FRANCISCO & DENVER & NEW YORK–(BUSINESS WIRE)–
Today, xAI, TWG Global and Palantir Technologies (NASDAQ: PLTR) announced a collaboration that commits to remaking how financial service providers of all sizes can successfully adopt AI and scale the technology across the entire enterprise to drive long-term market competitiveness and unlock unprecedented value creation.

“Palantir is proud to partner with xAI and TWG Global to revolutionize AI adoption in the financial services industry,” said Alex Karp, co-founder and chief executive officer of Palantir Technologies. “Some of the West’s most critical institutions are spending too much time navigating cobbled-together systems and not enough time leveraging the transformative power of AI to unlock enormous growth. Placing AI at the core of operations empowers these companies to drive faster, more meaningful outcomes for customers and—consequently—generate far greater value for society.”

CEOs across industries understand that implementing AI as a core business strategy is no longer optional. It is vital for survival in today’s competitive market. However, 74% of companies remain stuck in the proof-of-concept phase and fail to achieve meaningful returns.

“AI has the potential to make the 21st century the most productive time in human history,” said Mark Walter, Chairman and CEO of TWG Global. “However, to achieve this, there needs to be a significant shift in how we approach AI integration. Namely, it needs to be managed by the very highest levels of the C-suite rather than siloed in a business’s technology group where it has traditionally resided.”

Together, the partnership will build an offering that bridges the critical gap that has failed enterprises in the past by combining business objectives with an AI-first strategy and partnering directly with enterprise CEOs to develop and deploy a workforce of hundreds of thousands of AI agents that will redefine how businesses operate.

“Our partnership is designed to deliver an AI solution that integrates into an organization’s workflow and data streams, providing contextual intelligence that drives measurable business impact that is reflected in a company’s P&L,” said Thomas Tull, Co-Chairman of TWG Global. “We believe the future of financial services lies in the hands of employees armed with the right AI technology. By combining TWG Global’s operational expertise with Palantir and xAI’s world-class platform and reasoning intelligence, we’re driving a ground swell of productivity and efficiency while transforming complex, bloated, legacy processes that have limited business agility in the past. The result is a turbocharged workforce that is a game changer for businesses and consumers, establishing new benchmarks for speed and efficiency.”

Leveraging the coalition’s combined deep expertise in operations, transformation, infrastructure and advanced modelling, the offering will make transformative AI accessible to every organization through a scalable, easy-to-deploy suite of turnkey solutions. The types of products offered through the collaboration include:

• Governance Foundation: data readiness, security infrastructure, and governance frameworks including large scale agent orchestration

• Agent Suite: industry-tuned AI to boost productivity, democratize knowledge, and enable outcome-oriented innovation

• Agentic Workforce: modular AI agents tailored to specific business processes, deep focus on orchestration across & between functions to deliver measurable outcomes from revenue generation to cost reduction

TWG Global will spearhead the implementation efforts, working directly with CEOs and Chief AI leaders to design and deploy AI-driven solutions that employ AI agents operating as a dynamic, assistive workforce with military-grade security that can enhance operational capacity, enter into new markets previously unobtainable, and continually challenge the status quo. Results from implementation are ideally realized in as little as ninety days. This rapid approach to delivering concrete outcomes from the onset helps drive wider adoption and set up financial services institutions to take leading positions in their transformation efforts.

Unlike other AI providers that rely on per-seat licensing or headcount margin, the partnership will operate on an outcome-based business model. By aligning success with measurable outcomes, the partnership and its offering are a true business ally, sharing in the success as companies achieve transformative results.

xAI, Palantir, and TWG Global have created an offering that is transformative and differentiated from anything that exists in the market. The approach, which leverages xAI’s state-of-the-art models and Colossus supercomputer, will help supercharge the workforce and drive profound industry change.

The offering has been developed by TWG Global over the past year under the direction of Drew Cukor, TWG Global’s Head of Data and Analytics, who previously developed best-in-class AI programs at J.P. Morgan. Its rapid adoption within the TWG Global portfolio is demonstrating its immense potential. xAI’s inclusion in the coalition will aim to create faster, more dramatic outcomes, with many more partners.

“While AI has a ton of promise, we are stuck in the ‘agentic tech debt bubble,’ a vicious cycle where pressure to stay ahead leads to rushed investments, ballooning headcount and a complex web of disjointed solutions that cannot create real value,” said Cukor. “These investments are hard to unwind, but there is a window right now to change course and develop new ways to work with AI to revolutionize businesses and turbocharge economies. This is a truly exciting time, and our tri-partnership is prepared to help lead the path forward.”

ABOUT TWG GLOBAL

TWG Global operates and invests in businesses with untapped potential and guides them to new levels of growth. For additional information, visit: twgglobal.com.

ABOUT PALANTIR

Foundational software of tomorrow. Delivered today. Additional information is available at palantir.com.

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 statements may relate to, but are not limited to, Palantir’s expectations regarding the amount and the terms of a contract and the expected benefits of Palantir’s software platforms. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Forward-looking statements are based on information available at the time those statements are made and were based on current expectations as well as the beliefs and assumptions of management as of that time with respect to future events. These statements are subject to risks and uncertainties, many of which involve factors or circumstances that are beyond Palantir’s control. These risks and uncertainties include the ability to meet the unique needs of customers; the failure of Palantir’s platforms to satisfy customers or perform as desired; the frequency or severity of any software and implementation errors; Palantir’s platforms’ reliability; and customers’ ability to modify or terminate the contract. Additional information regarding these and other risks and uncertainties is included in the filings Palantir makes with the Securities and Exchange Commission from time to time. Except as required by law, Palantir does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250506868597/en/

Media Contacts

Palantir

Lisa Gordon, [email protected]

TWG Global

Remy Marin, [email protected]

KEYWORDS: United States North America Colorado California New York

INDUSTRY KEYWORDS: Apps/Applications Technology Finance Security Business Professional Services Software Data Management Artificial Intelligence

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May 6, 2025 7:02 am

Bristol Myers Squibb Appoints Cari Gallman as Executive Vice President, General Counsel and Chief Policy Officer

Bristol Myers Squibb Appoints Cari Gallman as Executive Vice President, General Counsel and Chief Policy Officer

Gallman’s Appointment is Effective Immediately

Sandra Leung, Executive Vice President, General Counsel Retires After 33 Years of Service

PRINCETON, N.J.–(BUSINESS WIRE)–Bristol Myers Squibb (NYSE: BMY) today announced the appointment of Cari Gallman as Executive Vice President, General Counsel and Chief Policy Officer, effective immediately. Gallman succeeds Sandra (Sandy) Leung, who has chosen to retire after an extraordinary 33-year career at the company.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250506937441/en/

Bristol Myers Squibb Appoints Cari Gallman as Executive Vice President, General Counsel and Chief Policy Officer

Gallman, an accomplished leader with extensive experience in pharmaceutical law and compliance, will lead the law department, which includes intellectual property, commercial and regulatory law, litigation, securities and corporate governance, transactions, corporate security and compliance and ethics, as well as global and U.S. policy and government affairs. She has held leadership positions at Bristol Myers Squibb for 10 years, most recently serving as Executive Vice President, Corporate Affairs.

“Cari brings a unique combination of legal, policy and communications expertise, coupled with an impressive ability to inspire teams, uphold ethical business practices and champion patient voices,” said Christopher Boerner, Ph.D., board chair and chief executive officer, Bristol Myers Squibb. “I am confident that under Cari’s leadership, our legal and policy teams are well positioned to advance Bristol Myers Squibb’s efforts to drive and deliver innovation to patients facing serious diseases.”

“It is an honor to have the opportunity to lead the incredible teams that govern and counsel Bristol Myers Squibb in advancing its mission to deliver transformational medicines to more patients,” said Gallman. “I am committed to continuing to build on the company’s culture of integrity and shape a dynamic policy environment that protects innovation and patients.”

On Sandy’s retirement, Boerner said, “Sandy’s resilience, steadfast leadership, and unwavering commitment to patients have left an indelible mark on our company. On behalf of the entire organization, I want to express our deepest gratitude to Sandy for her decades of service and wish her all the best in her well-deserved retirement.”

About Cari Gallman

Prior to her appointment as Bristol Myers Squibb’s Executive Vice President, General Counsel and Chief Policy Officer, Cari Gallman served as Executive Vice President, Corporate Affairs and was responsible for advancing the company strategy through strategic communications, government relations and policy, corporate social responsibility, corporate marketing and brand reputation, and patient advocacy.

Previously, Gallman served as Chief Compliance and Ethics officer, where she championed Bristol Myers Squibb’s culture of integrity, ensuring the company conducted its business in compliance with ethical business practices and laws and regulations in the global markets in which it operates. Gallman joined Bristol Myers Squibb in 2015 and assumed positions of increasing responsibility, including as head of the legal team supporting the Global Oncology Commercialization and Development organizations.

Gallman began her legal career in private practice representing pharmaceutical and medical device manufacturers in a variety of complex civil, regulatory, and government enforcement matters.

Gallman earned a bachelor’s degree in political theory from Princeton University, magna cum laude, and a JD from Harvard Law School.

About Bristol Myers Squibb: Transforming Patients’ Lives Through Science

At Bristol Myers Squibb, our mission is to discover, develop and deliver innovative medicines that help patients prevail over serious diseases. We are pursuing bold science to define what’s possible for the future of medicine and the patients we serve. For more information, visit us at BMS.com and follow us on LinkedIn, X, YouTube, Facebook and Instagram.

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View source version on businesswire.com: https://www.businesswire.com/news/home/20250506937441/en/

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Bristol Myers Squibb Appoints Cari Gallman as Executive Vice President, General Counsel and Chief Policy Officer

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May 6, 2025 7:00 am

AEP Reports First-Quarter 2025 Earnings, Reaffirms Guidance

PR Newswire

AEP completes anticipated equity needs to execute five-year, $54 billion capital investment plan.
Company makes progress achieving balanced regulatory outcomes, focuses on needs of states.
Growth continues to be driven by commercial load, which increased 12.3% in first-quarter 2025 over the same period in 2024.
First-quarter 2025 GAAP earnings of $1.50 per share; operating earnings of $1.54 per share.
Company reaffirms 2025 operating earnings (non-GAAP) guidance of $5.75 to $5.95 per share and long-term growth rate of 6% to 8%.

COLUMBUS, Ohio
, May 6, 2025 /PRNewswire/ — American Electric Power (Nasdaq: AEP) today reported first-quarter 2025 earnings, prepared in accordance with Generally Accepted Accounting Principles (GAAP), of $800 million or $1.50 per share, compared with GAAP earnings of $1,003 million or $1.91 per share in first-quarter 2024. Operating earnings for first-quarter 2025 were $823 million or $1.54 per share, compared with operating earnings of $670 million or $1.27 per share in first-quarter 2024. See the detailed GAAP to operating earnings reconciliation at the end of this press release.

“Our robust operating earnings results this quarter reflect our team’s continued focus on execution and innovation to deliver on our commitments to our customers, communities, regulators and investors. This strong performance gives us the confidence to reaffirm our 2025 operating earnings guidance of $5.75 to $5.95 per share. We also reaffirm our projected long-term growth rate of 6% to 8%,” said Bill Fehrman, AEP president and chief executive officer.

Meeting Equity Needs to Execute Robust Capital Plan

AEP secured funding in the first quarter to complete the anticipated equity needs for its five-year, $54 billion capital growth plan through an agreement for a minority equity interest investment in the Ohio and Indiana Michigan transmission companies and a forward equity offering. The $2.82 billion transmission company transaction, announced in January, is on track to close in the coming months. Authorization from the Federal Energy Regulatory Commission is the final remaining step in the approval process. AEP’s equity offering secured $2.3 billion and was completed in March. The equity will be settled under a forward contract by December 2026. These two transactions are equivalent to issuing common stock at approximately $140 per share, a premium to AEP’s current share price.

“We continue to successfully execute on initiatives to meet our five-year, $54 billion capital needs and are focused on putting dollars to work expanding and improving our power grid and bringing on new generation resources. Completing our anticipated equity needs for the next five years through our forward stock offering and the expected closing of the minority interest transmission transaction, which offer significant benefits to our customers and shareholders alike, gives us the foundation we need to bring our capital plan to fruition. Our capital investments are key to enhancing reliability and customer service and meeting the over 20 gigawatts of new power demand we expect by the end of the decade. With our team’s consistent focus on accountability, and commitment to finding innovative solutions to meet customers’ power needs, we continue to see potential for an additional $10 billion of investments over the next five years. In addition, we have determined that the direct tariff exposure on our $54 billion capital plan is minimal at approximately 0.3%,” Fehrman said.

Supporting Significant Load Growth with a Focus on Customer Affordability

In the first quarter of 2025, commercial load grew 12.3% over the same period in 2024. This continues the trend from last year, when AEP saw overall commercial load grow by 10.6%. AEP forecasts annual total retail load growth of 8% to 9% over the next three years. The historic growth continues to be driven by large-load customer demand in Indiana, Ohio, Oklahoma and Texas.

AEP’s five-year capital plan includes $34 billion for distribution and transmission investments across its footprint, supporting this demand growth. AEP, through its Transource Energy joint venture, and in collaboration with other regional utilities, was selected in February by the PJM board to complete projects totaling $1.7 billion. AEP Texas received approval in April from the Public Utility Commission of Texas to construct one of the first 765-kilovolt transmission line projects in the state. Additionally, the commission approved AEP Texas’ proposed grid resiliency plans.

“We operate the nation’s largest extra-high voltage transmission system that serves as America’s energy backbone. Our unique experience building and operating extra-high voltage lines has positioned us as an ideal partner to expand the grid to deliver reliable power. AEP’s transmission business is expected to contribute 55% of operating earnings this year. With more than 500 new and existing customers interested in connecting to our transmission system, we recognize the enormous potential these projects have for our communities. New infrastructure will allow us to handle this increased demand, improve reliability and expand growth and prosperity in the communities we serve,” Fehrman added.

At the same time, AEP remains committed to ensuring the costs to meet the needs of large-load commercial and industrial customers are balanced with affordability for all customers. In the first quarter, regulators in Indiana, Kentucky and West Virginia approved large-load tariff modifications in each state. In Ohio, a regulatory decision is expected in the second half of the year, following a first-of-its-kind data center tariff and settlement filed by AEP Ohio last year.

Delivering on Energy Policy Goals and Bolstering Communities

AEP is committed to working collaboratively with regulators and policymakers to achieve the energy goals of the states it serves. Updated integrated resource plans (IRPs) have been filed in Arkansas and Indiana and will be filed over the next year in Kentucky, Michigan, Virginia and West Virginia.

The diverse resource plan in Indiana includes the purchase of the 870-megawatt combined cycle power plant located in Oregon, Ohio. Indiana Michigan Power filed for regulatory approval of this acquisition in April.

“AEP is working every day with policymakers at the local, state and federal levels to ensure they understand our commitment to investing in a safe, reliable and affordable energy system that benefits our customers and drives our economy. We have set a strong foundation with balanced and constructive regulatory outcomes achieved so far this year in most of our states. This is an exciting time in our history, and as we navigate the significant changes in the energy landscape, AEP is committed to prioritizing the energy needs of our states, meeting the needs of our customers and supporting our communities,” Fehrman concluded.

AMERICAN ELECTRIC POWER
Preliminary, unaudited results

		First Quarter ended March 31
		2025	2024	Change
Revenue ($ in millions):		5,463.4	5,025.7	437.7
Earnings ($ in millions):
	GAAP	800.2	1,003.1	(202.9)
	Operating (non-GAAP)	823.3	670.4	152.9

EPS ($):
	GAAP	1.50	1.91	(0.41)
	Operating (non-GAAP)	1.54	1.27	0.27

EPS based on 533 million shares 1Q 2025, 527 million shares 1Q 2024.

SUMMARY OF RESULTS BY SEGMENT
$ in millions

GAAP Earnings	1Q 25	1Q 24	Change
Vertically Integrated Utilities (a)	324.1	560.8	(236.7)
Transmission & Distribution Utilities (b)	164.6	150.3	14.3
AEP Transmission Holdco (c)	234.6	208.7	25.9
Generation & Marketing (d)	102.4	137.6	(35.2)
All Other	(25.5)	(54.3)	28.8
Total GAAP Earnings (Loss)	800.2	1,003.1	(202.9)

Operating Earnings (non-GAAP)	1Q 25	1Q 24	Change
Vertically Integrated Utilities (a)	349.9	300.3	49.6
Transmission & Distribution Utilities (b)	192.3	150.3	42.0
AEP Transmission Holdco (c)	234.6	208.7	25.9
Generation & Marketing (d)	76.3	65.4	10.9
All Other	(29.8)	(54.3)	24.5
Total Operating Earnings (non-GAAP)	823.3	670.4	152.9

A full reconciliation of GAAP earnings with operating earnings is included in tables at the end of this news release.


a.	Includes AEP Generating Co., Appalachian Power, Indiana Michigan Power, Kentucky Power, Kingsport Power, Public Service Co. of Oklahoma, Southwestern Electric Power and Wheeling Power
b.	Includes Ohio Power and AEP Texas
c.	Includes wholly-owned transmission-only subsidiaries and transmission-only joint ventures
d.	Includes AEP Renewables, competitive generation in ERCOT and PJM as well as marketing, risk management and retail activities in ERCOT, PJM and MISO

EARNINGS GUIDANCE

AEP confirmed its 2025 operating earnings guidance range of $5.75 to $5.95 per share and long-term growth rate of 6% to 8%. Operating earnings could differ from GAAP earnings for matters such as impairments, divestitures, mark-to-market impacts or changes in accounting principles. AEP management is not able to forecast if any of these items will occur or any amounts that may be reported for future periods. Therefore, AEP is not able to provide a corresponding GAAP equivalent for 2025 earnings guidance.

Reflecting certain items recorded through the first quarter, the estimated earnings per share on a GAAP basis would be $5.71 to $5.91 per share. See the table below for a full reconciliation of 2025 earnings guidance.

2025 EPS Guidance Reconciliation

Estimated EPS on a GAAP basis	$5.71	to	$5.91

Mark-to-market impact of commodity hedging activities		(0.03)

Sale of AEP OnSite Partners		0.02

Impact of Ohio Legislation		0.05

Operating EPS Guidance	$5.75	to	$5.95

WEBCAST

AEP’s quarterly discussion with financial analysts and investors will be broadcast live over the internet at 9 a.m. Eastern today at http://www.aep.com/webcasts. The webcast will include audio of the discussion and visuals of charts and graphics referred to by AEP management. The charts and graphics will be available for download at http://www.aep.com/webcasts.

AEP’s earnings are prepared in accordance with accounting principles generally accepted in the United States and represent the company’s earnings as reported to the Securities and Exchange Commission. The company’s operating earnings, a non-GAAP measure representing GAAP earnings excluding certain items as described in the news release and charts, provide another representation for investors to evaluate the performance of the company’s ongoing business activities. AEP uses operating earnings as the primary performance measurement when communicating with analysts and investors regarding its earnings outlook and results. The company uses operating earnings data internally to measure performance against budget, to report to AEP’s Board of Directors and also as an input in determining performance-based compensation under the company’s employee incentive compensation plans. A full reconciliation of GAAP earnings to operating earnings for the quarter and year to date is included in the tables at the end of this news release.

ABOUT AEP

Our team at American Electric Power (Nasdaq: AEP) is committed to improving our customers’ lives with reliable, affordable power. We are investing $54 billion from 2025 through 2029 to enhance service for customers and support the growing energy needs of our communities. Our nearly 16,000 employees operate and maintain the nation’s largest electric transmission system with 40,000 line miles, along with more than 225,000 miles of distribution lines to deliver energy to 5.6 million customers in 11 states. AEP also is one of the nation’s largest electricity producers with approximately 29,000 megawatts of diverse generating capacity. We are focused on safety and operational excellence, creating value for our stakeholders and bringing opportunity to our service territory through economic development and community engagement. Our family of companies includes AEP Ohio, AEP Texas, Appalachian Power (in Virginia, West Virginia and Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, which provides innovative competitive energy solutions nationwide. AEP is headquartered in Columbus, Ohio. For more information, visit aep.com.

WEBSITE DISCLOSURE

AEP may use its website as a distribution channel for material company information. Financial and other important information regarding AEP is routinely posted on and accessible through AEP’s website at https://www.aep.com/investors/. In addition, you may automatically receive email alerts and other information about AEP when you enroll your email address by visiting the “Email Alerts” section at https://www.aep.com/investors/.

—

This report made by the Registrants contains forward-looking statements, and for the Registrants other than Parent, this report contains forward looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Many forward-looking statements appear in “Part I – Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this quarterly report, but there are others throughout this document which may be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “will,” “should,” “could,” “would,” “project,” “continue” and similar expressions, and include statements reflecting future results or guidance and statements of outlook. These matters are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Forward-looking statements in this document are presented as of the date of this document. Except to the extent required by applicable law, management undertakes no obligation to update or revise any forward-looking statement. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: changes in economic conditions, electric market demand and demographic patterns in AEP service territories; the economic impact of increased global conflicts and trade tensions, and the adoption or expansion of economic sanctions, tariffs, trade restrictions or changes in trade policy; inflationary or deflationary interest rate trends; new legislation adopted in the states in which we operate that alters the regulatory framework or that prevents the timely recovery of costs and investments; volatility and disruptions in financial markets precipitated by any cause, including fiscal and monetary policy, turmoil related to federal budget or debt ceiling matters or instability in the banking industry; particularly developments affecting the availability or cost of capital to finance new capital projects and refinance existing debt; the availability and cost of funds to finance working capital and capital needs, particularly (a) if expected sources of capital such as proceeds from the sale of assets, subsidiaries and tax credits and anticipated securitizations do not materialize or do not materialize at the level anticipated, and (b) during periods when the time lag between incurring costs and recovery is long and the costs are material; changing demand for electricity, including large load contractual commitments for interconnection; the risks and uncertainties associated with wildfires, including damages caused by wildfires, the extent of each Registrant’s liability in connection with wildfires, investigations and outcomes associated with legal proceedings, demands or similar actions, inability to recover wildfire costs through insurance or through rates and the impact on financial condition and the reputation of each Registrant; the impact of extreme weather conditions, natural disasters and catastrophic events such as storms, wildfires and drought conditions that pose significant risks including potential litigation and the inability to recover significant damages and restoration costs incurred; limitations or restrictions on the amounts and types of insurance available to cover losses that might arise in connection with natural disasters, wildfires or operations; the cost of fuel and its transportation, the creditworthiness and performance of parties who supply and transport fuel and the cost of storing and disposing of used fuel, including coal ash and spent nuclear fuel; the availability of fuel and necessary generation capacity and the performance of generation plants; the ability to recover fuel and other energy costs through regulated or competitive electric rates; the ability to build or acquire generation (including from renewable sources), transmission lines and facilities (including the ability to obtain any necessary regulatory approvals and permits) to meet the demand for electricity at acceptable prices and terms, including favorable tax treatment, cost caps imposed by regulators and other operational commitments to regulatory commissions and customers for generation projects, and to recover all related costs; the disruption of AEP’s business operations due to impacts on economic or market conditions, costs of compliance with potential government regulations, electricity usage, supply chain issues, customers, service providers, vendors and suppliers caused by pandemics, natural disasters or other events; new legislation, litigation or government regulation, including changes to tax laws and regulations, oversight of nuclear generation, energy commodity trading and new or modified requirements related to emissions of sulfur, nitrogen, mercury, carbon, soot or PM and other substances that could impact the continued operation, cost recovery and/or profitability of generation plants and related assets; the impact of federal tax legislation, including potential changes to existing tax incentives, on results of operations, financial condition, cash flows or credit ratings; the risks before, during and after generation of electricity associated with the fuels used or the by-products and wastes of such fuels, including coal ash and spent nuclear fuel; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions, including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance; resolution of litigation or regulatory proceedings or investigations; the ability to efficiently manage and recover operation, maintenance and development project costs; prices and demand for power generated and sold at wholesale; changes in technology, particularly with respect to energy storage and new, developing, alternative or distributed sources of generation; the ability to recover through rates any remaining unrecovered investment in generation units that may be retired before the end of their previously projected useful lives; volatility and changes in markets for coal and other energy-related commodities, particularly changes in the price of natural gas; the impact of changing expectations and demands of customers, regulators, investors and stakeholders, including development, adoption, and use of artificial intelligence by us, our customers and our third party vendors and evolving expectations related to environmental, social and governance concerns; changes in utility regulation and the allocation of costs within RTOs including ERCOT, PJM and SPP; changes in the creditworthiness of the counterparties with contractual arrangements, including participants in the energy trading market; actions of rating agencies, including changes in the ratings of debt; the impact of volatility in the capital markets on the value of the investments held by the pension, OPEB and nuclear decommissioning trust funds and a captive insurance entity and the impact of such volatility on future funding requirements; accounting standards periodically issued by accounting standard-setting bodies; other risks and unforeseen events, including wars and military conflicts, the effects of terrorism (including increased security costs), embargoes, cybersecurity threats, labor strikes impacting material supply chains, global information technology disruptions and other catastrophic events; or the ability to attract and retain the requisite work force and key personnel.

American Electric Power
Financial Results for the First Quarter of 2025
Reconciliation of GAAP to Operating Earnings (non-GAAP)

			2025
			Vertically Integrated Utilities	Transmission & Distribution Utilities	AEP Transmission Holdco	Generation & Marketing	Corporate and Other	Total	EPS (a)
			($ in millions)

GAAP Earnings (Loss)			324.1	164.6	234.6	102.4	(25.5)	800.2	$ 1.50

Adjustments to GAAP Earnings		(b)
	Mark-to-Market Impact of Commodity Hedging Activities	(c)	25.8	—	—	(39.8)	—	(14.0)	(0.03)
	Sale of AEP OnSite Partners	(d)	—	—	—	13.7	(4.3)	9.4	0.02
	Impact of Ohio Legislation	(e)	—	27.7	—	—	—	27.7	0.05
Total Adjustments			25.8	27.7	—	(26.1)	(4.3)	23.1	$ 0.04
Operating Earnings (Loss) (non-GAAP)			349.9	192.3	234.6	76.3	(29.8)	823.3	$ 1.54


Financial Results for the First Quarter of 2024
Reconciliation of GAAP to Operating Earnings (non-GAAP)

			2024
			Vertically Integrated Utilities	Transmission & Distribution Utilities	AEP Transmission Holdco	Generation & Marketing	Corporate and Other	Total	EPS (a)
			($ in millions)

GAAP Earnings (Loss)			560.8	150.3	208.7	137.6	(54.3)	1,003.1	$ 1.91

Adjustments to GAAP Earnings		(b)
	Mark-to-Market Impact of Commodity Hedging Activities	(c)	20.4	—	—	(72.2)	—	(51.8)	(0.10)
	Remeasurement of Excess ADIT Regulatory Liability – Turk Plant	(f)	(32.4)	—	—	—	—	(32.4)	(0.06)
	Impact of NOLC on Retail Rate Making	(g)	(259.6)	—	—	—	—	(259.6)	(0.50)
	Disallowance – Dolet Hills Power Station	(h)	11.1	—	—	—	—	11.1	0.02
Total Adjustments			(260.5)	—	—	(72.2)	—	(332.7)	$ (0.64)
Operating Earnings (Loss) (non-GAAP)			300.3	150.3	208.7	65.4	(54.3)	670.4	$ 1.27


(a)	Per share amounts are divided by Weighted Average Common Shares Outstanding – Basic
(b)	Excluding tax related adjustments, all items presented in the table are tax adjusted at the statutory rate unless otherwise noted
(c)	Represents the impact of mark-to-market economic hedging activities
(d)	Represents an adjustment to the estimated loss on the sale of AEP OnSite Partners as a result of the contractual working capital true-up
(e)	Represents the estimated reduction in regulatory assets for OVEC-related purchased power costs as a result of recently approved legislation in Ohio
(f)	Represents the impact of the remeasurement of excess accumulated deferred income taxes related to the Arkansas share of the Turk Plant as a result of the APSC’s March 2024 order
(g)	Represents the impact of receiving IRS PLRs related to NOLCs in retail rate making (I&M, PSO and SWEPCo). Amount includes a reduction in excess accumulated deferred income taxes and activity related to prior periods
(h)	Represents the impact of a disallowance recorded at SWEPCo on the remaining net book value of the Dolet Hills Power Station as a result of an LPSC approved settlement agreement in April 2024

American Electric Power
Summary of Selected Sales Data
Regulated Connected Load
(Data based on preliminary, unaudited results)

	Three Months Ended March 31
ENERGY & DELIVERY SUMMARY	2025	2024	Change

Vertically Integrated Utilities
Retail Electric (in millions of kWh):
Residential	9,404	8,560	9.9 %
Commercial	5,896	5,769	2.2 %
Industrial	8,101	8,252	(1.8) %
Miscellaneous	533	538	(0.9) %
Total Retail	23,934	23,119	3.5 %

Wholesale Electric (in millions of kWh): (a)	4,791	3,763	27.3 %

Total KWHs	28,725	26,882	6.9 %

Transmission & Distribution Utilities
Retail Electric (in millions of kWh):
Residential	7,011	6,280	11.6 %
Commercial	9,588	7,991	20.0 %
Industrial	6,756	6,812	(0.8) %
Miscellaneous	172	180	(4.4) %
Total Retail (b)	23,527	21,263	10.6 %

Wholesale Electric (in millions of kWh): (a)	667	590	13.1 %

Total KWHs	24,194	21,853	10.7 %


(a)	Includes off-system sales, municipalities and cooperatives, unit power and other wholesale customers
(b)	Represents energy delivered to distribution customers

View original content to download multimedia:https://www.prnewswire.com/news-releases/aep-reports-first-quarter-2025-earnings-reaffirms-guidance-302447101.html

SOURCE American Electric Power

May 6, 2025 6:59 am

TreeHouse Foods, Inc. Reports First Quarter 2025 Results

PR Newswire

First Quarter Adjusted EBITDA Exceeds Upper-End of Guidance Range

Reiterates 2025 Outlook

Net sales were $792.0 million, and adjusted net sales¹ were $796.0 million.
Net loss was $(31.8) million.
Adjusted EBITDA¹ of $57.5 million.
Reaffirmed 2025 outlook of adjusted net sales of $3.34 to $3.40 billion, adjusted EBITDA of $345 to $375 million, and free cash flow²of at least $130 million.

OAK BROOK, Ill.
, May 6, 2025 /PRNewswire/ — TreeHouse Foods, Inc. (NYSE: THS) today reported financial results for the first quarter of 2025.

“I am grateful to the entire TreeHouse team for its execution this quarter, which resulted in Adjusted EBITDA that exceeded the upper-end of our guidance range,” said Steve Oakland, Chairman, Chief Executive Officer, and President. “We restored production capacity at our Brantford frozen griddle facility and implemented plans to drive margin and execution consistent with our focus on profitability and cash flow growth. I continue to believe private brands are well positioned to offer value to our customers and the consumer.”

Mr. Oakland continued, “As we look ahead, we are remaining steadfast in the plan I articulated last quarter. We are controlling the controllables and ensuring that we provide best in class service for our retail customers at a time when they need us. These actions have and will enable us to grow profits and cash flow regardless of the environment and position the business for significant operating leverage when our categories return to higher growth rates.”

FIRST
QUARTER 2025 FINANCIAL RESULTS

Net Sales — Net sales for the first quarter of 2025 totaled $792.0 million compared to $820.7 million for the same period last year, a decrease of $28.7 million, or 3.5%. The change in net sales from 2024 to 2025 was due to the following:

		Three Months
		(unaudited)
Margin management		(3.3) %
Consumption/other		(2.6)
Griddle recall service impacts		(2.4)
Volume/mix		(8.3) %
Business acquisition		4.7
Pricing		1.1
Business exit		(0.4)
Product recall returns		(0.3)
Foreign currency		(0.3)
Total change in net sales		(3.5) %
Product recall returns		0.3
Total change in adjusted net sales⁽¹⁾		(3.2) %

The net sales decrease of 3.5% was primarily due to unfavorable volume/mix related to planned margin management actions,
broader macroeconomic consumption trends, and
service impacts related to the voluntary recall of frozen griddle products. Additionally, the RTD business exit contributed to the decrease. This was partially offset by the acquisition of the private brand tea business, favorable pricing to recover commodity inflation, and distribution gains.

Gross Profit — Gross profit as a percentage of net sales was 14.5% in the first quarter of 2025, compared to 13.6% in the first quarter of 2024, an increase of 0.9 percentage points. The increase in Gross profit is primarily due to the execution of supply chain savings initiatives, favorable pricing to recover commodity inflation, and a mix benefit from Harris Tea.

Total Operating Expenses — Total operating expenses were $120.7 million in the first quarter of 2025 compared to $117.2 million in the first quarter of 2024, an increase of $3.5 million. The increase is due to increased restructuring costs primarily related to severance expense, which was partially offset by lower freight and commission costs.

Total Other Expense — Total other expense was $38.1 million in the first quarter of 2025 compared to $10.1 million in the first quarter of 2024, an increase in expense of $28.0 million. This was primarily due to a $24.0 million unfavorable change in non-cash mark-to-market impact from hedging activities, largely driven by interest rate swaps. Additionally, the Company had an increase of $3.7 million in interest expense primarily due to an increase in borrowings on our Revolving Credit Facility and a loss on extinguishment of debt of $2.6 million during the first quarter of 2025. This was partially offset by a favorable currency exchange rate impact of $3.7 million between the U.S. and Canada.

Income Taxes — Income taxes were recognized at an effective rate of 27.1% in the first quarter of 2025 compared to 23.5% recognized in the first quarter of 2024. The change in the Company’s effective tax rate is primarily driven by changes in the amounts of executive compensation that is not deductible for tax purposes and the estimated amount of annual pre-tax earnings.

Net Loss and Adjusted EBITDA — Net loss for the first quarter of 2025 was $31.8 million, compared to $11.7 million for the same period of the previous year. Adjusted EBITDA¹ was $57.5 million in the first quarter of 2025, compared to $46.0 million in the first quarter of 2024, an increase of $11.5 million. The increase in Adjusted EBITDA is primarily due to supply chain savings initiatives, favorable pricing to recover commodity inflation, and the accretive impact of the Harris Tea acquisition.

Net Cash Used In Operating Activities — Net cash used in operating activities was $53.5 million in the first three months of 2025 compared to $52.4 million in the first three months of 2024, an increase in cash used of $1.1 million, which was mostly attributable to timing of working capital.

OUTLOOK²

TreeHouse Foods reiterated its previously issued full year 2025 guidance:

Adjusted net sales in a range of $3.340 billion to $3.400 billion, which represents a decline of approximately 1% to growth of approximately 1% year-over-year driven by:
- Volume/mix, which are expected to decline approximately 1% year-over-year due to:
  - Organic volume/mix decline approximately 1%
  - Harris Tea volume benefit offset by previously announced decision to exit the Ready-to-drink (“RTD”) business and other margin management actions, along with one-time impact of frozen griddle product recall.
- Pricing, which is expected to provide an approximately 1% benefit.
Adjusted EBITDA is expected in a range of $345 million to $375 million.
Net interest expense is continued to be expected in the range of $80 to $90 million.
The Company expects capital expenditures of approximately $125 million.
The Company expects free cash flow of at least $130 million.

With regard to the second quarter, TreeHouse Foods expects the following:

Second quarter adjusted net sales are expected in a range of $785 to $800 million, which represents approximately flat growth year-over-year at the mid-point. Organic volume and mix are expected to decline mid-single digits, driven primarily by continued margin management actions and the griddle product recall. Pricing is expected to provide an approximately 1% benefit.
Second quarter adjusted EBITDA is expected in a range of $61 to $71 million, which reflects the shift of $6 million of spend into Q2 from Q1.

________________________________________________

¹Adjusted EBITDA, adjusted net sales, and free cash flow are non-GAAP financial measures. See “Comparison of Non-GAAP Information to GAAP Information” for the definitions of the Non-GAAP measures, information concerning certain items affecting comparability, and reconciliations of GAAP to Non-GAAP measures.

² The Company is not able to reconcile prospective adjusted net sales, adjusted EBITDA or free cash flow, which are Non-GAAP financial measures, to the most comparable GAAP financial measures without unreasonable effort due to the inherent uncertainty and difficulty of predicting the occurrence, financial impact, and timing of certain items impacting GAAP results. These items include, but are not limited to, mark-to-market adjustments of derivative contracts, foreign currency exchange on the re-measurement of intercompany notes, or other non-recurring events or transactions that may significantly affect reported GAAP results.

CONFERENCE CALL WEBCAST

A webcast to discuss the Company’s first quarter earnings will be held at 8:30 a.m. (Eastern Time) today. The live audio webcast and a supporting slide deck will be available on the Company’s website at www.treehousefoods.com/investors/investor-overview/default.aspx.

COMPARISON OF NON-GAAP INFORMATION TO GAAP INFORMATION

The Company has included in this release measures of financial performance that are not defined by GAAP (“Non-GAAP”). A Non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the Company’s Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Comprehensive Loss, Condensed Consolidated Statements of Stockholders’ Equity, and the Condensed Consolidated Statements of Cash Flows. As described further below, the Company believes these measures provide useful information to the users of the financial statements.

For each of these Non-GAAP financial measures, the Company provides a reconciliation between the most directly comparable GAAP measure and the Non-GAAP measure, an explanation of why management believes the Non-GAAP measure provides useful information to financial statement users, and any additional purposes for which management uses the Non-GAAP measure. This Non-GAAP financial information is provided as additional information for the financial statement users and is not in accordance with, or an alternative to, GAAP. These Non-GAAP measures may be different from similar measures used by other companies.

EBITDA, EBITDA Margin, Adjusted EBITDA, and Adjusted EBITDA Margin, Adjusting for Certain Items Affecting Comparability

EBITDA margin is defined as EBITDA as a percentage of net sales. Adjusted EBITDA margin is defined as adjusted EBITDA as a percentage of adjusted net sales. EBITDA represents net loss before interest expense, interest income, income tax benefit, and depreciation and amortization expense. Adjusted EBITDA reflects adjustments to EBITDA to identify items that, in management’s judgment, significantly affect the assessment of earnings results between periods. This information is provided in order to allow investors to make meaningful comparisons of the Company’s earnings performance between periods and to view the Company’s business from the same perspective as Company management. As the Company cannot predict the timing and amount of charges that include, but are not limited to, items such as product recalls and related costs, restructuring programs, acquisition, integration, divestiture, and related costs, loss on extinguishment of debt, foreign currency exchange impact on the re-measurement of intercompany notes, mark-to-market adjustments on derivative contracts, and other items that may arise from time to time that would impact comparability, management does not consider these costs when evaluating the Company’s performance, when making decisions regarding the allocation of resources, in determining incentive compensation, or in determining earnings estimates. EBITDA and adjusted EBITDA are performance measures commonly used by management to assess operating performance and incentive compensation, and the Company believes they are commonly reported and widely used by investors and other interested parties as a measure of a company’s operating performance between periods and as a component of our debt covenant calculations.

Adjusted Net Sales, Adjusted Cost of Sales, Adjusted Gross Profit, Adjusted Total Operating Expenses, Adjusted Operating Income, Adjusted Total Other Expense, Adjusted Income Tax Expense (Benefit), Adjusted Net Income (Loss), and Adjusted Diluted Earnings (Loss) Per Share, Adjusting for Certain Items Affecting Comparability

Adjusted net sales, adjusted cost of sales, adjusted gross profit, adjusted total operating expenses, adjusted operating income, adjusted total other expense, adjusted income tax expense (benefit), and adjusted net income (loss) represent their respective GAAP presentation line item adjusted for items such as product recalls and related costs, restructuring programs, acquisition, integration, divestiture, and related costs, loss on extinguishment of debt, foreign currency exchange impact on the re-measurement of intercompany notes, mark-to-market adjustments on derivative contracts, and other items that may arise from time to time that would impact comparability. Management does not consider these costs when evaluating the Company’s performance, when making decisions regarding the allocation of resources, in determining incentive compensation, or in determining earnings estimates. This information is provided in order to allow investors to make meaningful comparisons of the Company’s earnings performance between periods and to view the Company’s business from the same perspective as Company management. The Company has presented each of these adjusted Non-GAAP measures as a percentage of adjusted net sales compared to its respective reported GAAP presentation line item as a percentage of net sales. Adjusted diluted earnings (loss) per share (“Adjusted diluted EPS”) is determined by dividing adjusted net income (loss) by the weighted average diluted common shares outstanding. Adjusted diluted EPS reflects adjustments to GAAP earnings (loss) per diluted share to identify items that, in management’s judgment, significantly affect the assessment of earnings results between periods.

Given the inherent uncertainty regarding adjusted items in any future period, a reconciliation of forward-looking financial measures to the most directly comparable GAAP measure is not feasible.

Free Cash Flow

In addition to measuring our cash flow generation and usage based upon the operating, investing, and financing classifications included in the Condensed Consolidated Statements of Cash Flows, we also measure free cash flow (a Non-GAAP measure) which represents net cash used in operating activities, less capital expenditures and proceeds from sales of fixed assets. We believes free cash flow is an important measure of liquidity because it provides management and investors a measure of cash generated from operations that is available for mandatory payment obligations and investment opportunities such as funding acquisitions, repaying debt, repurchasing public debt, and repurchasing common stock. A reconciliation between the relevant GAAP measure of cash used in operating activities for the three months ended March 31, 2025 and 2024 calculated according to GAAP and free cash flow is presented in the attached tables.

ABOUT TREEHOUSE FOODS

TreeHouse Foods, Inc. is a leading private brands snacking and beverage manufacturer in North America. Our purpose is to engage and delight – one customer at a time. Through our customer focus and category experience, we strive to deliver excellent service and build capabilities and insights to drive mutually profitable growth for TreeHouse and for our customers. Our purpose is supported by investment in depth, capabilities and operational efficiencies which are aimed to capitalize on the long-term growth prospects in the categories in which we operate.

Additional information, including TreeHouse’s most recent statements on Forms 10-Q and 10-K, may be found at TreeHouse’s website, http://www.treehousefoods.com.

FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and other information are based on our beliefs, as well as assumptions made by us, using information currently available. The words “believe,” “estimate,” “project,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” and similar expressions, as they relate to us, are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, or intended. We do not intend to update these forward-looking statements following the date of this press release. Such forward-looking statements, because they relate to future events, are by their very nature subject to many important factors that could cause actual results to differ materially from those contemplated by the forward-looking statements contained in this press release and other public statements we make. Such factors include, but are not limited to: risks related to quality issues, disruptions, or inefficiencies in our supply chain and/or operations; product recalls; loss or consolidation of key suppliers; raw material and commodity costs due to inflation; labor strikes or work stoppages; multiemployer pension plans; labor shortages and increased competition for labor; success of our restructuring programs; our level of indebtedness and related obligations; disruptions in the financial markets; uncertain effects, both direct and indirect, of changes and volatility in tariffs and trade policies; interest rates; changes in foreign currency exchange rates; customer concentration and consolidation; competition; our ability to execute on our business strategy; our ability to continue to make acquisitions and execute on divestitures or effectively manage the growth from acquisitions; impairment of goodwill or long lived assets; changes and developments affecting our industry, including customer preferences and the prevalence of weight loss drugs; the outcome of litigation and regulatory proceedings to which we and/or our customers may be a party; changes in laws and regulations applicable to us; shareholder activism; disruptions in or failures of our information technology systems; geopolitical events; changes in weather conditions, climate changes, and natural disasters; and other risks that are set forth in the Risk Factors section, the Legal Proceedings section, the Management’s Discussion and Analysis of Financial Condition and Results of Operations section, and other sections of our Annual Report on Form 10-K for the year ended December 31, 2024, and from time to time in our filings with the Securities and Exchange Commission (“SEC”). You are cautioned not to unduly rely on such forward-looking statements, which speak only as of the date made when evaluating the information presented in this press release. TreeHouse expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, to reflect any change in its expectations with regard thereto, or any other change in events, conditions or circumstances on which any statement is based.

FINANCIAL INFORMATION

TREEHOUSE FOODS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in millions, except per share data)

	March 31, 2025	December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$ 16.4	$ 289.6
Receivables, net	132.7	146.8
Inventories	589.2	539.3
Prepaid expenses and other current assets	37.2	34.0
Total current assets	775.5	1,009.7
Property, plant, and equipment, net	757.5	748.6
Operating lease right-of-use assets	190.9	154.4
Goodwill	1,889.1	1,819.3
Intangible assets, net	278.7	212.9
Other assets, net	35.6	35.1
Total assets	$ 3,927.3	$ 3,980.0
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$ 509.4	$ 602.5
Accrued expenses	165.9	141.3
Current portion of long-term debt	5.4	1.1
Total current liabilities	680.7	744.9
Long-term debt	1,417.4	1,401.3
Operating lease liabilities	153.8	125.4
Deferred income taxes	104.6	105.8
Other long-term liabilities	51.9	53.7
Total liabilities	2,408.4	2,431.1
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.01 per share, 10.0 shares authorized, none issued	—	—
Common stock, par value $0.01 per share, 90.0 shares authorized, 50.4 and 50.2 shares outstanding as of March 31, 2025 and December 31, 2024, respectively	0.6	0.6
Treasury stock	(385.4)	(385.4)
Additional paid-in capital	2,240.0	2,238.4
Accumulated deficit	(253.8)	(222.0)
Accumulated other comprehensive loss	(82.5)	(82.7)
Total stockholders’ equity	1,518.9	1,548.9
Total liabilities and stockholders’ equity	$ 3,927.3	$ 3,980.0

TREEHOUSE FOODS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in millions, except per share data)

	Three Months Ended March 31,
	2025	2024
Net sales	$ 792.0	$ 820.7
Cost of sales	676.8	708.7
Gross profit	115.2	112.0
Operating expenses:
Selling and distribution	36.4	42.9
General and administrative	55.7	55.8
Amortization expense	13.1	12.1
Other operating expense, net	15.5	6.4
Total operating expenses	120.7	117.2
Operating loss	(5.5)	(5.2)
Other expense:
Interest expense	19.3	15.6
Interest income	(2.8)	(4.0)
Loss on extinguishment of debt	2.6	—
(Gain) loss on foreign currency exchange	(0.3)	3.4
Other expense (income), net	19.3	(4.9)
Total other expense	38.1	10.1
Loss before income taxes	(43.6)	(15.3)
Income tax benefit	(11.8)	(3.6)
Net loss	$ (31.8)	$ (11.7)

Earnings (loss) per common share:
Basic	$ (0.63)	$ (0.22)
Diluted	(0.63)	(0.22)
Weighted average common shares:
Basic	50.3	53.8
Diluted	50.3	53.8

TREEHOUSE FOODS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in millions)

	Three Months Ended March 31,
	2025	2024
Cash flows from operating activities:
Net loss	$ (31.8)	$ (11.7)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	41.4	36.6
Stock-based compensation	5.6	5.7
Loss on extinguishment of debt	2.6	—
Unrealized loss (gain) on derivative contracts	17.0	(7.0)
Other, net	(0.9)	5.0
Changes in operating assets and liabilities, net of acquisitions:
Receivables	27.5	2.9
Inventories	(8.0)	(9.6)
Prepaid expenses and other assets	(14.4)	(8.4)
Accounts payable	(103.2)	(48.2)
Accrued expenses and other liabilities	10.7	(17.7)
Net cash used in operating activities	(53.5)	(52.4)
Cash flows from investing activities:
Capital expenditures	(25.9)	(28.3)
Proceeds from sales of fixed assets	4.1	0.2
Acquisition, net of cash acquired	(209.3)	—
Net cash used in investing activities	(231.1)	(28.1)
Cash flows from financing activities:
Borrowings under Revolving Credit Facility	697.3	—
Payments under Revolving Credit Facility	(672.3)	—
Payments on financing lease obligations	(0.3)	(0.1)
Payment of deferred financing costs	(3.7)	—
Payments on Term Loans	(905.0)	—
Proceeds from refinanced Term Loans	899.2	—
Repurchases of common stock	—	(43.9)
Payments related to stock-based award activities	(4.0)	(3.8)
Net cash provided by (used in) financing activities	11.2	(47.8)
Effect of exchange rate changes on cash and cash equivalents	0.2	(0.2)
Net decrease in cash and cash equivalents	(273.2)	(128.5)
Cash and cash equivalents, beginning of period	289.6	320.3
Cash and cash equivalents, end of period	$ 16.4	$ 191.8

	Three Months Ended March 31,
	2025	2024
Supplemental cash flow disclosures:
Interest paid	$ 27.2	$ 26.3
Net income taxes paid	0.9	0.6

Non-cash investing and financing activities:
Capital expenditures incurred but not yet paid	15.9	11.7
Right-of-use assets obtained in exchange for lease obligations	40.9	(1.7)
Preliminary purchase price adjustment for private brand tea business acquisition	2.0	—
Accrued deferred financing costs	0.2	—

The following table reconciles the Company’s net loss to EBITDA and adjusted EBITDA, for the three months ended March 31, 2025 and 2024:

TREEHOUSE FOODS, INC. RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA (Unaudited, in millions)

	Three Months Ended March 31,
	2025	2024
Net loss (GAAP)	$ (31.8)	$ (11.7)
Interest expense	19.3	15.6
Interest income	(2.8)	(4.0)
Income tax benefit	(11.8)	(3.6)
Depreciation and amortization	41.4	36.6
EBITDA (Non-GAAP)	14.3	32.9
Mark-to-market adjustments⁽¹⁾	17.0	(7.0)
Restructuring programs & other, excluding accelerated depreciation⁽²⁾	15.4	6.7
Product recalls and related costs⁽³⁾	5.9	6.9
Loss on extinguishment of debt⁽⁴⁾	2.6	—
Acquisition, integration, divestiture, and related costs⁽⁵⁾	2.5	4.1
Foreign currency (gain) loss on re-measurement of intercompany notes⁽⁶⁾	(0.2)	2.4
Adjusted EBITDA (Non-GAAP)	$ 57.5	$ 46.0

% of net sales
Net loss margin	(4.0) %	(1.4) %
EBITDA margin	1.8 %	4.0 %

% of adjusted net sales
Adjusted EBITDA margin	7.2 %	5.6 %

During the three months ended March 31, 2025 and 2024, the Company entered into transactions that affected the year-over-year comparison of its financial results as follows:

(1)	The Company’s derivative contracts are marked-to-market each period. The non-cash unrealized changes in fair value recognized in Other expense (income), net within the Condensed Consolidated Statements of Operations are treated as Non-GAAP adjustments. As the contracts are settled, realized gains and losses are recognized, and only the mark-to-market impacts are treated as Non-GAAP adjustments.

(2)	The Company’s restructuring and margin improvement activities are part of an enterprise-wide transformation to improve the long-term profitability of the Company. During the first quarter of 2025, the Company recognized $2.9 million of accelerated depreciation within the Company’s restructuring activities as depreciation expense.

(3)	Griddle Recall and Related Costs On October 18, 2024, the Company initiated a voluntary recall of certain frozen waffle products produced at its Brantford, Ontario, Canada facility, and on October 22, 2024, the Company expanded its voluntary recall to include all products manufactured at the Brantford facility that are still within their shelf-life. For the three months ended March 31, 2025, the Company recognized incremental charges of $5.8 million, which includes $5.5 million for estimated product returns and claims and non-cash inventory write-offs of $0.3 million. Broth Recall and Related Costs On September 22, 2023, the Company initiated a voluntary recall of certain broth products produced at its Cambridge, Maryland facility and has since been executing a turnaround plan to restore the facility operations. As a result of these restoration activities, during the three months ended March 31, 2025, the Company incurred $0.1 million of costs. During the three months ended March 31, 2024, the Company incurred incremental costs related to the product recall of $6.9 million, which include non-cash plant shutdown charges of $4.4 million, non-cash inventory write-offs of $2.3 million, and other costs, including product returns and logistics, of $0.2 million.

(4)	During the three months ended March 31, 2025, the Company incurred a loss on extinguishment of debt, which included a write off of deferred financing costs of $2.6 million in connection with the Credit Agreement refinancing.

(5)	Acquisition, integration, divestiture, and related costs represents costs associated with completed and potential acquisitions, the related integration of the acquisitions, completed and potential divestitures, and gains or losses on the divestiture of a business. During the three months ended March 31, 2025, $1.9 million was classified in Cost of sales, $0.3 million was classified in General and administrative, and $0.3 million was classified in Net sales. During the three months ended March 31, 2024, $2.0 million was classified in General and administrative, $1.9 million was classified in Cost of sales, and $0.2 million was classified in Other operating expense, net.

(6)	The Company has foreign currency denominated intercompany loans and incurred foreign currency gains/losses to re-measure the loans at quarter end. These amounts are non-cash and the loans are eliminated in consolidation.

The following tables reconcile the Company’s Adjusted net sales, Adjusted cost of sales, Adjusted gross profit, Adjusted total operating expenses, Adjusted operating income, Adjusted total other expense, Adjusted income tax expense (benefit), and Adjusted net income (loss) to their most directly comparable GAAP measure, for three months ended March 31, 2025 and 2024:

TREEHOUSE FOODS, INC. RECONCILIATION OF NON-GAAP MEASURES (Unaudited, in millions, except per share amounts)

	Three Months Ended March 31, 2025

	Net sales	Cost of sales	Gross profit	Total operating expenses	Operating (loss) income	Total other expense	Income tax (benefit) expense	Net (loss) income
As reported (GAAP)	$ 792.0	$ 676.8	$ 115.2	$ 120.7	$ (5.5)	$ 38.1	$ (11.8)	$ (31.8)
Adjustments:
Mark-to-market adjustments⁽¹⁾	—	—	—	—	—	(17.0)	—	17.0
Restructuring programs & other, including accelerated depreciation⁽²⁾	—	(2.8)	2.8	(15.5)	18.3	—	—	18.3
Product recalls and related costs⁽³⁾	3.7	0.1	3.6	(2.3)	5.9	—	—	5.9
Loss on extinguishment of debt⁽⁴⁾	—	—	—	—	—	(2.6)	—	2.6
Acquisition, integration, divestiture, and related costs⁽⁵⁾	0.3	(1.9)	2.2	(0.3)	2.5	—	—	2.5
Foreign currency gain on re-measurement of intercompany notes⁽⁶⁾	—	—	—	—	—	0.2	—	(0.2)
Taxes on adjusting items	—	—	—	—	—	—	12.8	(12.8)
As adjusted (Non-GAAP)	$ 796.0	$ 672.2	$ 123.8	$ 102.6	$ 21.2	$ 18.7	$ 1.0	$ 1.5

As reported (% of net sales)			14.5 %	15.2 %	(0.7) %	4.8 %	(1.5) %	(4.0) %
As adjusted (% of adjusted net sales)			15.6 %	12.9 %	2.7 %	2.3 %	0.1 %	0.2 %

Earnings (loss) per share:
Diluted								$ (0.63)
Adjusted diluted								$ 0.03

Weighted average common shares:
Diluted for net loss								50.3
Diluted for adjusted net income								50.4

	Three Months Ended March 31, 2024

	Net sales	Cost of sales	Gross profit	Total operating expenses	Operating (loss) income	Total other expense	Income tax benefit	Net loss
As reported (GAAP)	$ 820.7	$ 708.7	$ 112.0	$ 117.2	$ (5.2)	$ 10.1	$ (3.6)	$ (11.7)
Adjustments:
Mark-to-market adjustments⁽¹⁾	—	—	—	—	—	7.0	—	(7.0)
Restructuring programs & other⁽²⁾	—	—	—	(6.7)	6.7	—	—	6.7
Product recalls and related costs⁽³⁾	0.9	(6.0)	6.9	—	6.9	—	—	6.9
Acquisition, integration, divestiture, and related costs⁽⁵⁾	—	(1.9)	1.9	(2.2)	4.1	—	—	4.1
Foreign currency loss on re-measurement of intercompany notes⁽⁶⁾	—	—	—	—	—	(2.4)	—	2.4
Taxes on adjusting items	—	—	—	—	—	—	3.2	(3.2)
As adjusted (Non-GAAP)	$ 821.6	$ 700.8	$ 120.8	$ 108.3	$ 12.5	$ 14.7	$ (0.4)	$ (1.8)

As reported (% of net sales)			13.6 %	14.3 %	(0.6) %	1.2 %	(0.4) %	(1.4) %
As adjusted (% of adjusted net sales)			14.7 %	13.2 %	1.5 %	1.8 %	— %	(0.2) %

Earnings (loss) per share
Diluted								$ (0.22)
Adjusted diluted								$ (0.03)

Weighted average common shares:
Diluted for net loss								53.8
Diluted for adjusted net loss								53.8

TREEHOUSE FOODS, INC. RECONCILIATION OF NET CASH USED IN OPERATING ACTIVITIES TO FREE CASH FLOW (Unaudited, in millions)

	Three Months Ended March 31,
	2025	2024

Cash flow used in operating activities (GAAP)	$ (53.5)	$ (52.4)
Capital expenditures	(25.9)	(28.3)
Proceeds from sales of fixed assets	4.1	0.2
Free cash flow (Non-GAAP)	$ (75.3)	$ (80.5)

View original content:https://www.prnewswire.com/news-releases/treehouse-foods-inc-reports-first-quarter-2025-results-302446453.html

SOURCE TreeHouse Foods, Inc.

May 6, 2025 6:58 am

USA Compression Partners Reports First-Quarter 2025 Results; Confirms 2025 Outlook

USA Compression Partners Reports First-Quarter 2025 Results; Confirms 2025 Outlook

DALLAS–(BUSINESS WIRE)–
USA Compression Partners, LP (NYSE: USAC) (“USA Compression” or the “Partnership”) announced today its financial and operating results for first-quarter 2025.

Financial Highlights

Total revenues of $245.2 million for first-quarter 2025, compared to $229.3 million for first-quarter 2024.
Net income was $20.5 million for first-quarter 2025, compared to $23.6 million for first-quarter 2024.
Net cash provided by operating activities was $54.7 million for first-quarter 2025, compared to $65.9 million for first-quarter 2024.
Adjusted EBITDA was $149.5 million for first-quarter 2025, compared to $139.4 million for first-quarter 2024.
Distributable Cash Flow was $88.7 million for first-quarter 2025, compared to $86.6 million for first-quarter 2024.
Distributable Cash Flow Coverage was 1.44x for first-quarter 2025, compared to 1.41x for first-quarter 2024.
Announced cash distribution of $0.525 per common unit for first-quarter 2025, consistent with first-quarter 2024.

Operational Highlights

Record average revenue per revenue-generating horsepower per month of $21.06 for first-quarter 2025, compared to $19.96 for first-quarter 2024.
Average revenue-generating horsepower of 3.56 million for first-quarter 2025, compared to 3.47 million for first-quarter 2024.
Average horsepower utilization of 94.4% for first-quarter 2025, compared to 94.8% for first-quarter 2024.

“USA Compression’s first-quarter results represented another quarter of solid financial and operational performance. The contract compression service market remains strong as evidenced by another record average revenue per-horsepower of $21.06, which drove year-over-year increases in revenues, Adjusted EBITDA, and Distributable Cash Flow,” commented Clint Green, USA Compression’s President and Chief Executive Officer.

“During the first quarter of 2025, we renewed our focus on new horsepower unit additions and placed orders for approximately 40,000 horsepower that we expect to begin placing in service in the back half of 2025. We are excited to continue delivering reliable services to our customers and continuing our commitment to safety, while maintaining capital discipline and delivering returns to our unitholders.”

Expansion capital expenditures were $22.2 million, maintenance capital expenditures were $10.9 million, and cash interest expense, net was $45.1 million for first-quarter 2025.

On April 17, 2025, the Partnership announced a first-quarter cash distribution of $0.525 per common unit, which corresponds to an annualized distribution rate of $2.10 per common unit. The distribution will be paid on May 9, 2025, to common unitholders of record as of the close of business on April 28, 2025.

Operational and Financial Data

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
Operational data:
Fleet horsepower (at period end) (1)		3,859,920			3,862,102			3,833,715
Revenue-generating horsepower (at period end) (2)		3,559,624			3,567,842			3,497,457
Average revenue-generating horsepower (3)		3,557,164			3,563,306			3,473,007
Revenue-generating compression units (at period end)		4,213			4,269			4,249
Horsepower utilization (at period end) (4)		94.4	%		94.6	%		94.8	%
Average horsepower utilization (for the period) (4)		94.4	%		94.5	%		94.8	%

Financial data ($ in thousands, except per horsepower data):
Total revenues	$	245,234		$	245,892		$	229,276
Average revenue per revenue-generating horsepower per month (5)	$	21.06		$	20.85		$	19.96
Net income	$	20,512		$	25,437		$	23,573
Operating income	$	69,391		$	74,529		$	66,872
Net cash provided by operating activities	$	54,651		$	130,195		$	65,917
Gross margin	$	93,223		$	99,259		$	90,953
Adjusted gross margin (6)	$	163,616		$	168,214		$	154,204
Adjusted gross margin percentage (7)		66.7	%		68.4	%		67.3	%
Adjusted EBITDA (6)	$	149,514		$	155,524		$	139,395
Adjusted EBITDA percentage (7)		61.0	%		63.2	%		60.8	%
Distributable Cash Flow (6)	$	88,695		$	96,259		$	86,589
Distributable Cash Flow Coverage Ratio (6)	1.44x			1.56x			1.41x

____________________________________
(1)		Fleet horsepower is horsepower for compression units that have been delivered to the Partnership and excludes 13,210 and 21,690 of non-marketable horsepower as of March 31, 2025 and 2024, respectively. As of March 31, 2025, we had 39,800 large horsepower on order for delivery, all of which is expected to be delivered within the next 12 months.

(2)		Revenue-generating horsepower is horsepower under contract for which the Partnership is billing a customer.

(3)		Calculated as the average of the month-end revenue-generating horsepower for each of the months in the period.

(4)		Horsepower utilization is calculated as (i) the sum of (a) revenue-generating horsepower; (b) horsepower in the Partnership’s fleet that is under contract but is not yet generating revenue; and (c) horsepower not yet in the Partnership’s fleet that is under contract but not yet generating revenue and that is expected to be delivered, divided by (ii) total available horsepower less idle horsepower that is under repair.

		Horsepower utilization based on revenue-generating horsepower and fleet horsepower was 92.2%, 92.4%, and 91.2% at March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

		Average horsepower utilization based on revenue-generating horsepower and fleet horsepower was 91.9%, 92.2%, and 91.0% for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

(5)		Calculated as the average of the result of dividing the contractual monthly rate, excluding standby or other temporary rates, for all units at the end of each month in the period by the sum of the revenue-generating horsepower at the end of each month in the period.

(6)		Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio are all non-U.S. generally accepted accounting principles (“Non-GAAP”) financial measures. For the definition of each measure, as well as reconciliations of each measure to its most directly comparable financial measures calculated and presented in accordance with GAAP, see “Non-GAAP Financial Measures” below.

(7)		Adjusted gross margin percentage and Adjusted EBITDA percentage are calculated as a percentage of revenue.

Liquidity and Long-Term Debt

As of March 31, 2025, the Partnership was in compliance with all covenants under its $1.6 billion revolving credit facility. As of March 31, 2025, the Partnership had outstanding borrowings under the revolving credit facility of $804.6 million and, after accounting for outstanding letters of credit in the amount of $0.8 million, $794.6 million of remaining unused availability, of which, due to restrictions related to compliance with the applicable financial covenants, $739.8 million was available to be drawn. As of March 31, 2025, the outstanding aggregate principal amount of the Partnership’s 6.875% senior notes due 2027 and 7.125% senior notes due 2029 was $750.0 million and $1.0 billion, respectively.

Full-Year 2025 Outlook

USA Compression is confirming its full-year 2025 guidance as follows (in thousands):

	Full-Year 2025 Outlook
	Low		High
Adjusted EBITDA (1)	$	590,000	$	610,000
Distributable Cash Flow (1)	$	350,000	$	370,000

Capital Expenditures:
Expansion capital expenditures (2)	$	120,000	$	140,000
Maintenance capital expenditures	$	38,000	$	42,000

____________________________________
(1)		The Partnership is unable to reconcile projected Adjusted EBITDA and Distributable Cash Flow to projected net income (loss) and projected net cash provided by operating activities, the most comparable financial measures calculated in accordance with GAAP because components of the required calculations cannot be reasonably estimated, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations.

(2)		Includes approximately $21 million of other business support capital that includes vehicles, tools, and IT infrastructure.

Conference Call

The Partnership will host a conference call today beginning at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss first-quarter 2025 performance. The call will be broadcast live over the internet. Investors may participate by audio webcast, or if located in the U.S. or Canada, by phone. A replay will be available shortly after the call via the “Events” page of USA Compression’s Investor Relations website.

By Webcast:		Connect to the webcast via the “Events” page of USA Compression’s Investor Relations website at https://investors.usacompression.com. Please log in at least 10 minutes in advance to register and download any necessary software.

By Phone:		Dial (888) 440-5655 at least 10 minutes before the call and ask for the USA Compression Partners Earnings Call or conference ID 8970064.

About USA Compression Partners, LP

USA Compression Partners, LP is one of the nation’s largest independent providers of natural gas compression services in terms of total compression fleet horsepower. USA Compression partners with a broad customer base composed of producers, processors, gatherers, and transporters of natural gas and crude oil. USA Compression focuses on providing midstream natural gas compression services to infrastructure applications primarily in high-volume gathering systems, processing facilities, and transportation applications. More information is available at usacompression.com.

Non-GAAP Financial Measures

This news release includes the Non-GAAP financial measures of Adjusted gross margin, Adjusted EBITDA, Distributable Cash Flow, and Distributable Cash Flow Coverage Ratio.

Adjusted gross margin is defined as revenue less cost of operations, exclusive of depreciation and amortization expense. Management believes Adjusted gross margin is useful to investors as a supplemental measure of the Partnership’s operating profitability. Management uses adjusted gross margin to assess operating performance as compared to historical results, budget and forecast amounts, expected return on capital investment, and our competitors. Adjusted gross margin primarily is impacted by the pricing trends for service operations and cost of operations, including labor rates for service technicians, volume, and per-unit costs for lubricant oils, quantity and pricing of routine preventative maintenance on compression units, and property tax rates on compression units. Adjusted gross margin should not be considered an alternative to, or more meaningful than, gross margin or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Adjusted gross margin, as presented, may not be comparable to similarly titled measures of other companies. Because the Partnership capitalizes assets, depreciation and amortization of equipment is a necessary element of its cost structure. To compensate for the limitations of Adjusted gross margin as a measure of the Partnership’s performance, management believes it is important to consider gross margin determined under GAAP, as well as Adjusted gross margin, to evaluate the Partnership’s operating profitability.

Management views Adjusted EBITDA as one of its primary tools for evaluating the Partnership’s results of operations, and the Partnership tracks this item on a monthly basis as an absolute amount and as a percentage of revenue compared to the prior month, year-to-date, prior year, and budget. The Partnership defines EBITDA as net income (loss) before net interest expense, depreciation and amortization expense, and income tax expense (benefit). The Partnership defines Adjusted EBITDA as EBITDA plus impairment of assets, impairment of goodwill, interest income on capital leases, unit-based compensation expense (benefit), severance charges and other employee costs, certain transaction expenses, loss (gain) on disposition of assets, loss on extinguishment of debt, loss (gain) on derivative instrument, and other. Adjusted EBITDA is used as a supplemental financial measure by management and external users of the Partnership’s financial statements, such as investors and commercial banks, to assess:

the financial performance of the Partnership’s assets without regard to the impact of financing methods, capital structure, or the historical cost basis of the Partnership’s assets;
the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities;
the ability of the Partnership’s assets to generate cash sufficient to make debt payments and pay distributions; and
the Partnership’s operating performance as compared to those of other companies in its industry without regard to the impact of financing methods and capital structure.

Management believes Adjusted EBITDA provides useful information to investors because, when viewed in conjunction with the Partnership’s GAAP results and the accompanying reconciliations, it may provide a more complete assessment of the Partnership’s performance as compared to considering solely GAAP results. Management also believes that external users of the Partnership’s financial statements benefit from having access to the same financial measures that management uses to evaluate the results of the Partnership’s business.

Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities, or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.

Distributable Cash Flow is defined as net income (loss) plus non-cash interest expense, non-cash income tax expense (benefit), depreciation and amortization expense, unit-based compensation expense (benefit), impairment of assets, impairment of goodwill, certain transaction expenses, severance charges and other employee costs, loss (gain) on disposition of assets, loss on extinguishment of debt, change in fair value of derivative instrument, proceeds from insurance recovery, and other, less distributions on Preferred Units and maintenance capital expenditures.

Distributable Cash Flow should not be considered an alternative to, or more meaningful than, net income (loss), operating income (loss), cash flows from operating activities, or any other measure presented in accordance with GAAP. Moreover, the Partnership’s Distributable Cash Flow, as presented, may not be comparable to similarly titled measures of other companies.

Management believes Distributable Cash Flow is an important measure of operating performance because it allows management, investors, and others to compare the cash flows that the Partnership generates (after distributions on Preferred Units but prior to any retained cash reserves established by the Partnership’s general partner and the effect of the Distribution Reinvestment Plan) to the cash distributions that the Partnership expects to pay its common unitholders.

Distributable Cash Flow Coverage Ratio is defined as the period’s Distributable Cash Flow divided by distributions declared to common unitholders in respect of such period. Management believes Distributable Cash Flow Coverage Ratio is an important measure of operating performance because it permits management, investors, and others to assess the Partnership’s ability to pay distributions to common unitholders out of the cash flows the Partnership generates. The Partnership’s Distributable Cash Flow Coverage Ratio, as presented, may not be comparable to similarly titled measures of other companies.

This news release also contains a forward-looking estimate of Adjusted EBITDA and Distributable Cash Flow projected to be generated by the Partnership for its 2025 fiscal year. The Partnership is unable to reconcile projected Adjusted EBITDA and Distributable Cash Flow to projected net income (loss) and projected net cash provided by operating activities, the most comparable financial measures calculated in accordance with GAAP because components of the required calculations cannot be reasonably estimated, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations.

See “Reconciliation of Non-GAAP Financial Measures” for Adjusted gross margin reconciled to gross margin, Adjusted EBITDA reconciled to net income and net cash provided by operating activities, and net income and net cash provided by operating activities reconciled to Distributable Cash Flow and Distributable Cash Flow Coverage Ratio.

Forward-Looking Statements

Some of the information in this news release may contain forward-looking statements. These statements can be identified by the use of forward-looking terminology including “may,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “continue,” “if,” “project,” “outlook,” “will,” “could,” “should,” or other similar words or the negatives thereof, and include the Partnership’s expectation of future performance contained herein, including as described under “Full-Year 2025 Outlook.” These statements discuss future expectations, contain projections of results of operations or of financial condition, or state other “forward-looking” information. You are cautioned not to place undue reliance on any forward-looking statements, which can be affected by assumptions used or by known risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors noted below and other cautionary statements in this news release. The risk factors and other factors noted throughout this news release could cause actual results to differ materially from those contained in any forward-looking statement. Known material factors that could cause the Partnership’s actual results to differ materially from the results contemplated by such forward-looking statements include:

changes in economic conditions of the crude oil and natural gas industries, including any impact from the ongoing military conflict involving Russia and Ukraine or the conflict in the Middle East;
changes in general economic conditions, including inflation, supply chain disruptions, or tariff impacts;
changes in the long-term supply of and demand for crude oil and natural gas;
competitive conditions in the Partnership’s industry, including competition for employees in a tight labor market;
our ability to realize the anticipated benefits of the shared services integration with Energy Transfer;
changes in the availability and cost of capital, including changes to interest rates;
renegotiation of material terms of customer contracts;
actions taken by the Partnership’s customers, competitors, and third-party operators;
operating hazards, natural disasters, epidemics, pandemics, weather-related impacts, casualty losses, and other matters beyond the Partnership’s control;
the deterioration of the financial condition of the Partnership’s customers, which may result in the initiation of bankruptcy proceedings with respect to certain customers;
the restrictions on the Partnership’s business that are imposed under the Partnership’s long-term debt agreements;
information technology risks, including the risk from cyberattacks, cybersecurity breaches, and other disruptions to the Partnership’s information systems;
the effects of existing and future laws and governmental regulations;
the effects of future litigation;
factors described in Part I, Item 1A (“Risk Factors”) of the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which was filed with the Securities and Exchange Commission (the “SEC”) on February 11, 2025, and subsequently filed reports; and
other factors discussed in the Partnership’s filings with the SEC.

All forward-looking statements speak only as of the date of this news release and are expressly qualified in their entirety by the foregoing cautionary statements. Unless legally required, the Partnership undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.

USA COMPRESSION PARTNERS, LP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except for per unit amounts – Unaudited)

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
Revenues:
Contract operations	$	224,975		$	222,985		$	218,104
Parts and service		5,094			6,854			5,460
Related party		15,165			16,053			5,712
Total revenues		245,234			245,892			229,276
Costs and expenses:
Cost of operations, exclusive of depreciation and amortization		81,618			77,678			75,072
Depreciation and amortization		70,393			68,955			63,251
Selling, general, and administrative		18,862			20,302			22,827
Loss on disposition of assets		1,325			3,826			1,254
Impairment of assets		3,645			602			—
Total costs and expenses		175,843			171,363			162,404
Operating income		69,391			74,529			66,872
Other income (expense):
Interest expense, net		(47,369	)		(48,616	)		(46,666	)
Loss on extinguishment of debt		—			—			(4,966	)
Gain on derivative instrument		—			—			8,771
Other		25			27			34
Total other expense		(47,344	)		(48,589	)		(42,827	)
Net income before income tax expense		22,047			25,940			24,045
Income tax expense		1,535			503			472
Net income		20,512			25,437			23,573
Less: distributions on Preferred Units		(4,388	)		(4,387	)		(4,388	)
Net income attributable to common unitholders’ interests	$	16,124		$	21,050		$	19,185

Weighted average common units outstanding – basic		117,513			117,074			102,535

Weighted average common units outstanding – diluted		118,254			118,089			103,606

Basic and diluted net income per common unit	$	0.14		$	0.18		$	0.19

Distributions declared per common unit for respective periods	$	0.525		$	0.525		$	0.525

USA COMPRESSION PARTNERS, LP SELECTED BALANCE SHEET DATA (In thousands, except unit amounts – Unaudited)

	March 31, 2025
Selected Balance Sheet data:
Total assets	$	2,713,120
Long-term debt, net	$	2,536,147
Total partners’ deficit	$	(180,711	)

Common units outstanding		117,540,788

USA COMPRESSION PARTNERS, LP CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands — Unaudited)

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
Net cash provided by operating activities	$	54,651		$	130,195		$	65,917
Net cash used in investing activities		(18,041	)		(26,920	)		(98,573	)
Net cash provided by (used in) financing activities		(36,622	)		(103,340	)		32,653

USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED GROSS MARGIN TO GROSS MARGIN (In thousands — Unaudited)

The following table reconciles Adjusted gross margin to gross margin, its most directly comparable GAAP financial measure, for each of the periods presented:

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
Total revenues	$	245,234		$	245,892		$	229,276
Cost of operations, exclusive of depreciation and amortization		(81,618	)		(77,678	)		(75,072	)
Depreciation and amortization		(70,393	)		(68,955	)		(63,251	)
Gross margin	$	93,223		$	99,259		$	90,953
Depreciation and amortization		70,393			68,955			63,251
Adjusted gross margin	$	163,616		$	168,214		$	154,204

USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES (In thousands — Unaudited)

The following table reconciles Adjusted EBITDA to net income and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented:

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
Net income	$	20,512		$	25,437		$	23,573
Interest expense, net		47,369			48,616			46,666
Depreciation and amortization		70,393			68,955			63,251
Income tax expense		1,535			503			472
EBITDA	$	139,809		$	143,511		$	133,962
Unit-based compensation expense (1)		3,384			5,552			7,769
Transaction expenses (2)		—			(23	)		108
Severance charges and other employee costs (3)		1,351			2,056			107
Loss on disposition of assets		1,325			3,826			1,254
Loss on extinguishment of debt (4)		—			—			4,966
Gain on derivative instrument		—			—			(8,771	)
Impairment of assets (5)		3,645			602			—
Adjusted EBITDA	$	149,514		$	155,524		$	139,395
Interest expense, net		(47,369	)		(48,616	)		(46,666	)
Non-cash interest expense		2,241			2,245			1,995
Income tax expense		(1,535	)		(503	)		(472	)
Transaction expenses		—			23			(108	)
Severance charges and other employee costs		(1,351	)		(2,056	)		(107	)
Cash received on derivative instrument		—			—			2,422
Other		85			777			60
Changes in operating assets and liabilities		(46,934	)		22,801			(30,602	)
Net cash provided by operating activities	$	54,651		$	130,195		$	65,917

____________________________________
(1)		For the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, unit-based compensation expense included $0.7 million, $0.9 million, and $1.0 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding phantom unit awards and $2.2 million, $0.2 million, and $0, respectively, related to the cash portion of the settlement of phantom unit awards upon vesting. The remainder of unit-based compensation expense for all periods was related to non-cash adjustments to the unit-based compensation liability and other non-cash unit-based compensation expense.

(2)		Represents certain expenses related to potential and completed transactions and other items. The Partnership believes it is useful to investors to exclude these expenses.

(3)		Severance charges and other employee costs includes (i) severance payments to former employees of the Partnership, (ii) retention payments to employees of the Partnership that have executed agreements to maintain operations during the shared services integration but do not intend to remain employed with the Partnership after their retention period, and (iii) relocation payments to employees of the Partnership for relocation resulting from the shared services integration and the change in location of the Partnership’s headquarters to Dallas, Texas. These retention payments are incremental to the affected employees’ base pay. For the three months ended March 31, 2025, severance charges and other employee costs included $0.4 million and $0.1 million related to retention payments and relocation payments, respectively.

(4)		This loss on extinguishment of debt is a result of the satisfaction and discharge of the senior notes due 2026. This amount represents the write-off of deferred financing costs of $4.3 million and the difference between (i) the purchase price of U.S. government securities of $748.8 million used to redeem the senior notes due 2026 and (ii) the aggregate outstanding principal balance and accrued interest of the senior notes due 2026 of $748.1 million at the time of purchase of the government securities.

(5)		Represents non-cash charges incurred to decrease the carrying value of long-lived assets with recorded values that are not expected to be recovered through future cash flows.

USA COMPRESSION PARTNERS, LP RECONCILIATION OF NON-GAAP FINANCIAL MEASURES DISTRIBUTABLE CASH FLOW TO NET INCOME AND NET CASH PROVIDED BY OPERATING ACTIVITIES (Dollars in thousands — Unaudited)

The following table reconciles Distributable Cash Flow to net income and net cash provided by operating activities, its most directly comparable GAAP financial measures, for each of the periods presented:

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
Net income	$	20,512		$	25,437		$	23,573
Non-cash interest expense		2,241			2,245			1,995
Depreciation and amortization		70,393			68,955			63,251
Non-cash income tax expense		85			147			60
Unit-based compensation expense (1)		3,384			5,552			7,769
Transaction expenses (2)		—			(23	)		108
Severance charges and other employee costs (3)		1,351			2,056			107
Other (4)		1,000			—			—
Loss on disposition of assets		1,325			3,826			1,254
Loss on extinguishment of debt (5)		—			—			4,966
Change in fair value of derivative instrument		—			—			(6,349	)
Impairment of assets (6)		3,645			602			—
Distributions on Preferred Units		(4,388	)		(4,387	)		(4,388	)
Maintenance capital expenditures (7)		(10,853	)		(8,151	)		(5,757	)
Distributable Cash Flow	$	88,695		$	96,259		$	86,589
Maintenance capital expenditures		10,853			8,151			5,757
Transaction expenses		—			23			(108	)
Severance charges and other employee costs		(1,351	)		(2,056	)		(107	)
Distributions on Preferred Units		4,388			4,387			4,388
Other		(1,000	)		630			—
Changes in operating assets and liabilities		(46,934	)		22,801			(30,602	)
Net cash provided by operating activities	$	54,651		$	130,195		$	65,917

Distributable Cash Flow	$	88,695		$	96,259		$	86,589

Distributions for Distributable Cash Flow Coverage Ratio (8)	$	61,731		$	61,702		$	61,422

Distributable Cash Flow Coverage Ratio	1.44x			1.56x			1.41x

____________________________________
(1)		For the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, unit-based compensation expense included $0.7 million, $0.9 million, and $1.0 million, respectively, of cash payments related to quarterly payments of distribution equivalent rights on outstanding phantom unit awards and $2.2 million, $0.2 million, and $0, respectively, related to the cash portion of the settlement of phantom unit awards upon vesting. The remainder of unit-based compensation expense for all periods was related to non-cash adjustments to the unit-based compensation liability and other non-cash unit-based compensation expense.

(2)		Represents certain expenses related to potential and completed transactions and other items. The Partnership believes it is useful to investors to exclude these expenses.

(3)		Severance charges and other employee costs includes (i) severance payments to former employees of the Partnership, (ii) retention payments to employees of the Partnership that have executed agreements to maintain operations during the shared services integration but do not intend to remain employed with the Partnership after their retention period, and (iii) relocation payments to employees of the Partnership for relocation resulting from the shared services integration and the change in location of the Partnership’s headquarters to Dallas, Texas. These retention payments are incremental to the affected employees’ base pay. For the three months ended March 31, 2025, severance charges and other employee costs included $0.4 million and $0.1 million related to retention payments and relocation payments, respectively.

(4)		Represents cash income tax expense accrued for the three months ended March 31, 2025 for a proposed settlement with the IRS, which we believe is a reasonable estimate of the potential loss from the aggregate final imputed underpayment for the federal tax years 2019 and 2020.

(5)		This loss on extinguishment of debt is a result of the satisfaction and discharge of the senior notes due 2026. This amount represents the write-off of deferred financing costs of $4.3 million and the difference between (i) the purchase price of U.S. government securities of $748.8 million used to redeem the senior notes due 2026 and (ii) the aggregate outstanding principal balance and accrued interest of the senior notes due 2026 of $748.1 million at the time of purchase of the government securities.

(6)		Represents non-cash charges incurred to decrease the carrying value of long-lived assets with recorded values that are not expected to be recovered through future cash flows.

(7)		Reflects actual maintenance capital expenditures for the periods presented. Maintenance capital expenditures are capital expenditures made to maintain the operating capacity of the Partnership’s assets and extend their useful lives, replace partially or fully depreciated assets, or other capital expenditures that are incurred in maintaining the Partnership’s existing business and related cash flow.

(8)		Represents distributions to the holders of the Partnership’s common units as of the record date.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250506123434/en/

Investor Contact:

USA Compression Partners, LP

Investor Relations

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Energy Utilities Oil/Gas

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May 6, 2025 6:58 am

Global Payments Reports First Quarter 2025 Results

Global Payments Reports First Quarter 2025 Results

First quarter 2025 GAAP diluted earnings per share (EPS) of $1.24, an increase of 2%, and adjusted EPS including share-based compensation expense of $2.69, an increase of 11% constant currency. Adjusted EPS excluding share-based compensation expense of $2.82
First quarter 2025 GAAP revenue of $2.41 billion, approximately flat, and adjusted net revenue of $2.20 billion, an increase of 5% constant currency ex-dispositions
Reaffirms outlook for 2025
Accelerates long-term growth strategy and unlocks shareholder value with previously announced agreements to acquire Worldpay and divest Issuer Solutions

ATLANTA–(BUSINESS WIRE)–
Global Payments Inc. (NYSE: GPN) today announced results for the first quarter ended March 31, 2025.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250506965742/en/

“We delivered solid financial results this quarter, reflecting the resilience of our business and consistent execution of our strategic priorities, despite incremental economic uncertainty during the period,” said Cameron Bready, chief executive officer. “As importantly, we continue to make meaningful progress on our operational transformation initiatives, which are enhancing our efficiency, streamlining our business, elevating client experiences and positioning us for long-term success.”

Bready continued, “The agreements we announced in April to acquire Worldpay and divest Issuer Solutions will sharpen our focus and accelerate our strategy. We have a tremendous opportunity to drive substantial revenue and cost synergies from the transaction as we amplify our collective go-to-market strengths and simplify our business to become a pure play merchant solutions provider with significantly expanded capabilities, extensive scale and greater market access. The transaction will drive an enhanced financial profile for the combined enterprise and unlock long-term value for our shareholders.

“The realignment of our operating model and business structure, together with our transformation will position us with a strong foundation to integrate Worldpay. We are excited about the upcoming launch of Genius later this month, and are continuing to implement our salesforce of the future initiative. Additionally, our unified technology organization is already delivering improved speed to market for new products and enhanced productivity, while providing the scalability, reliability and security that have long been hallmarks of our business.”

Bready concluded, “As we look ahead, we are more confident than ever that we are taking the right steps to reach our goal of becoming the worldwide partner of choice for commerce solutions.”

First Quarter 2025 Summary

GAAP revenues were $2.41 billion, compared to $2.42 billion in 2024; diluted EPS were $1.24, compared to $1.22 in the prior year; and operating margin was 19.5%, compared to 18.7% in the prior year.
Adjusted net revenues increased 1% (5% constant currency excluding dispositions) to $2.20 billion, compared to $2.18 billion in the first quarter of 2024.
Adjusted EPS including share-based compensation expense increased 9% (11% constant currency) to $2.69, compared to $2.46 in the first quarter of 2024; adjusted EPS excluding share-based compensation expense of $2.82.
Adjusted operating margin expanded 70 basis points to 42.4%.

2025 Outlook

“We are pleased with our positive start to the year, which included constant currency growth for both our Merchant and Issuer businesses, excluding dispositions, consistent with where we exited 2024 despite heightened market volatility,” said Josh Whipple, chief financial officer.

Whipple continued, “For the full year 2025, we continue to expect constant currency adjusted net revenue growth to be in a range of 5% to 6%, excluding dispositions, and constant currency adjusted earnings per share growth to be in a range of 10% to 11%. Annual adjusted operating margin is expected to expand 50 basis points, excluding dispositions.”

Whipple concluded, “Our outlook reflects the progress we are making on our transformation plan and a macro backdrop consistent with the current environment. The strategic initiatives we are undertaking this year give us confidence in our ability to quickly and fully integrate Worldpay and realize the synergy benefits we outlined, providing us greater conviction in our medium-term guidance and ability to accelerate our long-term revenue growth.”

Capital Allocation

Global Payments’ Board of Directors approved a dividend of $0.25 per share payable on June 27, 2025 to shareholders of record as of June 13, 2025.

Conference Call

Global Payments’ management will host a live audio webcast today, May 6, 2025, at 7:30 a.m. ET to discuss financial results and business highlights. The audio webcast, along with supplemental financial information, can be accessed via the investor relations page of the company’s website at investors.globalpayments.com. A replay of the audio webcast will be archived on the company’s website following the live event.

Non-GAAP Financial Measures

Global Payments supplements revenues, operating income, operating margin and net income and earnings per share determined in accordance with GAAP by providing these measures with certain adjustments (such measures being non-GAAP financial measures) in this earnings release to assist with evaluating our performance. In addition to GAAP measures, management uses these non-GAAP financial measures to focus on the factors the company believes are pertinent to the daily management of our operations.

Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure is included in the schedules to this release, except for forward-looking measures where a reconciliation to the corresponding GAAP measures is not available due to the variability, complexity and limited visibility of the items that are excluded from the non-GAAP outlook measures. The company is unable to address the probable significance of the unavailable information.

About Global Payments

Global Payments Inc. (NYSE: GPN) is a leading payments technology company delivering innovative software and services to our customers globally. Our technologies, services and team member expertise allow us to provide a broad range of solutions that enable our customers to operate their businesses more efficiently across a variety of channels around the world.

Headquartered in Georgia with approximately 27,000 team members worldwide, Global Payments is a Fortune 500® company and a member of the S&P 500 with worldwide reach spanning North America, Europe, Asia Pacific and Latin America. For more information, visit company.globalpayments.com and follow Global Payments on X, LinkedIn and Facebook.

Forward-Looking Statements

Investors are cautioned that some of the statements we use in this release contain forward-looking statements and are made pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and geographies in which we operate, and beliefs of and assumptions made by our management, involve risks, uncertainties and assumptions that could significantly affect the financial condition, results of operations, business plans and the future performance of Global Payments. Actual events or results might differ materially from those expressed or forecasted in these forward-looking statements. Accordingly, we cannot guarantee that our plans and expectations will be achieved. Examples of forward-looking statements include, but are not limited to, statements we make regarding future financial and operating results, including revenue, earnings estimates, liquidity, and deleveraging plans, management’s expectations regarding future plans, objectives and goals; market and growth opportunities; capital available for allocation; the effects of general economic conditions on our business; statements about the strategic rationale and anticipated benefits of acquisitions or dispositions, including future financial and operating results, and the successful integration of our acquisitions; statements about the completion of anticipated benefits and strategic or operational initiatives; statements regarding our success and timing in developing and introducing new services and expanding our business; and other statements regarding our future financial performance and the company’s plans, objectives, expectations and intentions. Statements can generally be identified as forward-looking because they include words such as “believes,” “anticipates,” “expects,” “intends,” “plan,” “forecast,” “could,” “should,” “will,” “would,” or words of similar meaning. Although we believe that the plans and expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our plans and expectations will be attained, and therefore actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements.

In addition to factors previously disclosed in Global Payments’ reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the occurrence of any event, change or other circumstances that could give rise to the right of one or more of the parties to terminate the transaction agreements for the divestiture of the Company’s Issuer Solutions business and the acquisition of Worldpay (collectively, the “Transaction”); the outcome of any legal proceedings that may be instituted against Worldpay, Global Payments, or its directors; the ability to obtain regulatory approvals and meet other closing conditions for the Transaction on a timely basis or at all, including the risk that regulatory approvals required for the Transaction are not obtained on a timely basis or at all, or are obtained subject to conditions that are not anticipated or that could adversely affect Global Payments following the Transaction or the expected benefits of the Transaction; risks related to the financing in connection with the Transaction; difficulties and delays in integrating the Worldpay business into that of Global Payments, including with respect to implementing controls to prevent a material security breach of any internal systems or to successfully manage credit and fraud risks in business units; failing to fully realize anticipated cost savings and other anticipated benefits of the Transaction when expected or at all, business disruptions from the proposed transaction that will harm Global Payments’ or Worldpay’s businesses, including current plans and operations; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the Transaction, including as it relates to Global Payments’ or Worldpay’s ability to successfully renew existing client contracts on favorable terms or at all and obtain new clients; failing to comply with the applicable requirements of Visa, Mastercard or other payment networks or card schemes or changes in those requirements; the ability of Global Payments or Worldpay to retain and hire key personnel; the diversion of management’s attention from ongoing business operations; uncertainty as to the long-term value of the common stock of Global Payments following the Transaction, including the dilution caused by Global Payments’ issuance of additional shares of its common stock in connection with the Transaction; the continued availability of capital and financing; the effects of global economic, political, market, health and social events or other conditions; the imposition of tariffs and other trade policies and the resulting impacts on market volatility and global trade; macroeconomic pressures and general uncertainty regarding the overall future economic environment; foreign currency exchange, inflation and rising interest rate risks; the effects of a security breach or operational failure on our business; the ability to maintain Visa and Mastercard registration and financial institution sponsorship; difficulties, increased competition in the markets in which we operate and our ability to increase our market share in existing markets and expand into new markets; our ability to safeguard our data; risks associated with our indebtedness; the potential effect of climate change including natural disasters; the effects of new or changes in current laws, regulations, credit card association rules or other industry standards on us or our partners and customers, including privacy and cybersecurity laws and regulations; and other events beyond our control, and other factors included in the “Risk Factors” section in our most recent Annual Report on Form 10-K and in other documents that we file with the SEC, which are available at https://www.sec.gov.

These cautionary statements qualify all of our forward-looking statements, and you are cautioned not to place undue reliance on these forward-looking statements. Our forward-looking statements speak only as of the date they are made and should not be relied upon as representing our plans and expectations as of any subsequent date. While we may elect to update or revise forward-looking statements at some time in the future, we specifically disclaim any obligation to publicly release the results of any revisions to our forward-looking statements, except as required by law.

SCHEDULE 1
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands, except per share data)

	Three Months Ended
	March 31,
		2025			2024		% Change

Revenues	$	2,412,098		$	2,420,187		(0.3	)%

Operating expenses:
Cost of service		921,195			922,390		(0.1	)%
Selling, general and administrative		1,024,011			1,045,545		(2.1	)%
Gain on business disposition		(3,993	)		—		nm
		1,941,213			1,967,935

Operating income		470,885			452,252		4.1	%

Interest and other income		39,389			35,928		9.6	%
Interest and other expense		(157,110	)		(162,147	)	(3.1	)%
		(117,721	)		(126,219	)

Income before income taxes and equity in income of equity method investments		353,164			326,033		8.3	%
Income tax expense		58,678			19,382		202.7	%
Income before equity in income of equity method investments		294,486			306,651		(4.0	)%
Equity in income of equity method investments, net of tax		18,286			16,411		11.4	%
Net income		312,772			323,062		(3.2	)%
Net income attributable to noncontrolling interests		(7,038	)		(9,755	)	(27.9	)%
Net income attributable to Global Payments	$	305,734		$	313,307		(2.4	)%

Earnings per share attributable to Global Payments:
Basic earnings per share	$	1.24		$	1.22		1.6	%
Diluted earnings per share	$	1.24		$	1.22		1.6	%

Weighted-average number of shares outstanding:
Basic		246,749			256,926
Diluted		247,160			257,588

Note: nm = not meaningful.

SCHEDULE 2
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands, except per share data)

	Three Months Ended
	March 31,
	2025		2024		% Change

Adjusted net revenue	$	2,204,828	$	2,183,939	1.0	%

Adjusted operating income	$	933,888	$	909,505	2.7	%

Adjusted net income attributable to Global Payments	$	665,291	$	634,188	4.9	%

Adjusted diluted earnings per share attributable to Global Payments	$	2.69	$	2.46	9.3	%

____________________

See Schedule 6 for a reconciliation of each non-GAAP financial measure to the most comparable GAAP measure, Schedule 7 for a reconciliation of adjusted net revenue and adjusted operating income by segment to the most comparable GAAP measure, and Schedule 8 for a discussion of non-GAAP financial measures.

All non-GAAP results now include the impact of share-based compensation expense and prior period non-GAAP results have been recast to reflect this change.

SCHEDULE 3
SEGMENT INFORMATION (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)

	Three Months Ended
	March 31, 2025						March 31, 2024						% Change
	GAAP			Non-GAAP			GAAP			Non-GAAP			GAAP		Non-GAAP

Revenues:
Merchant Solutions	$	1,808,687		$	1,691,854		$	1,834,094		$	1,683,384		(1.4	)%	0.5	%
Issuer Solutions		620,730			528,815			602,735			515,610		3.0	%	2.6	%
Intersegment eliminations		(17,319	)		(15,841	)		(16,642	)		(15,055	)	(4.1	)%	(5.2	)%
	$	2,412,098		$	2,204,828		$	2,420,187		$	2,183,939		(0.3	)%	1.0	%

Operating income (loss):
Merchant Solutions	$	614,102		$	808,953		$	580,438		$	790,413		5.8	%	2.3	%
Issuer Solutions		109,318			244,944			106,097			241,401		3.0	%	1.5	%
Corporate		(256,528	)		(120,010	)		(234,283	)		(122,310	)	(9.5	)%	1.9	%
Gain on business disposition		3,993			—			—			—		nm		nm
	$	470,885		$	933,888		$	452,252		$	909,505		4.1	%	2.7	%

____________________

See Schedule 7 for a reconciliation of adjusted net revenue and adjusted operating income by segment to the most comparable GAAP measures and Schedule 8 for a discussion of non-GAAP financial measures.

Note: Amounts may not sum due to rounding.

Note: nm = not meaningful.

SCHEDULE 4
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands, except share data)

	March 31, 2025			December 31, 2024

ASSETS
Current assets:
Cash and cash equivalents	$	2,896,024		$	2,538,416
Accounts receivable, net		1,112,308			1,081,740
Settlement processing assets		1,836,890			1,620,921
Prepaid expenses and other current assets		893,338			795,593
Total current assets		6,738,560			6,036,670
Goodwill		26,417,195			26,286,318
Other intangible assets, net		8,668,020			8,931,943
Property and equipment, net		2,352,656			2,277,593
Deferred income taxes		105,694			106,083
Notes receivable		788,075			772,297
Other noncurrent assets		2,545,906			2,479,351
Total assets	$	47,616,106		$	46,890,255

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Current liabilities:
Settlement lines of credit	$	727,975		$	503,407
Current portion of long-term debt		1,180,408			1,075,708
Accounts payable and accrued liabilities		2,925,073			3,079,924
Settlement processing obligations		2,307,400			1,593,675
Total current liabilities		7,140,856			6,252,714
Long-term debt		15,014,421			15,164,659
Deferred income taxes		1,770,186			1,832,996
Other noncurrent liabilities		666,070			623,319
Total liabilities		24,591,533			23,873,688
Commitments and contingencies
Redeemable noncontrolling interests		166,791			160,623
Equity:
Preferred stock, no par value; 5,000,000 shares authorized and none issued		—			—
Common stock, no par value; 400,000,000 shares authorized at March 31, 2025 and December 31, 2024; 245,361,590 shares issued and outstanding at March 31, 2025 and 248,708,899 shares issued and outstanding at December 31, 2024		—			—
Paid-in capital		17,678,643			18,118,942
Retained earnings		5,019,346			4,774,736
Accumulated other comprehensive loss		(449,646	)		(612,992	)
Total Global Payments shareholders’ equity		22,248,343			22,280,686
Nonredeemable noncontrolling interests		609,439			575,258
Total equity		22,857,782			22,855,944
Total liabilities, redeemable noncontrolling interests and equity	$	47,616,106		$	46,890,255

SCHEDULE 5
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)

	Three Months Ended
	March 31, 2025			March 31, 2024

Cash flows from operating activities:
Net income	$	312,772		$	323,062
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment		122,839			117,919
Amortization of acquired intangibles		329,269			343,217
Amortization of capitalized contract costs		34,424			32,883
Share-based compensation expense		39,740			40,117
Provision for operating losses and credit losses		19,950			19,409
Noncash lease expense		14,162			15,397
Deferred income taxes		(70,737	)		(111,886	)
Paid-in-kind interest capitalized to principal of notes receivable		(19,499	)		(17,694	)
Equity in income of equity method investments, net of tax		(18,286	)		(16,411	)
Distributions received on investments		7,512			—
Gain on business disposition		(3,993	)		—
Other, net		19,338			12,075
Changes in operating assets and liabilities, net of the effects of business combinations:
Accounts receivable		(36,734	)		50,934
Prepaid expenses and other assets		(93,552	)		(120,774	)
Accounts payable and other liabilities		(102,081	)		(158,669	)
Net cash provided by operating activities		555,124			529,579
Cash flows from investing activities:
Business combinations and other acquisitions, net of cash and restricted cash acquired		(49,886	)		(2,557	)
Capital expenditures		(127,577	)		(145,441	)
Payment received on notes receivable		4,375			—
Net cash used in investing activities		(173,088	)		(147,998	)
Cash flows from financing activities:
Changes in funds held for customers		(58,461	)		(88,573	)
Changes in settlement processing assets and obligations, net		479,153			(24,689	)
Net borrowings from settlement lines of credit		223,216			133,228
Net borrowings (repayments) from commercial paper notes		867,582			(1,093,043	)
Proceeds from long-term debt		1,551,000			4,609,000
Repayments of long-term debt		(2,546,613	)		(2,628,548	)
Payments of debt issuance costs		—			(29,391	)
Repurchases of common stock		(446,286	)		(800,048	)
Proceeds from stock issued under share-based compensation plans		6,340			11,031
Common stock repurchased – share-based compensation plans		(36,006	)		(41,140	)
Distributions to noncontrolling interests		(10,327	)		(4,748	)
Proceeds and contributions from noncontrolling interests		—			89
Purchase of capped calls related to issuance of convertible notes		—			(256,250	)
Dividends paid		(61,124	)		(63,616	)
Net cash used in financing activities		(31,526	)		(276,698	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		61,790			(34,035	)
Increase in cash, cash equivalents and restricted cash		412,300			70,848
Cash, cash equivalents and restricted cash, beginning of the period		2,735,975			2,256,875
Cash, cash equivalents and restricted cash, end of the period	$	3,148,275		$	2,327,723

SCHEDULE 6
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands, except per share data)

	Three Months Ended March 31, 2025
	GAAP		Net Revenue Adjustments⁽¹⁾			Earnings Adjustments⁽²⁾		Income Taxes on Adjustments⁽³⁾			Non-GAAP

Revenues	$	2,412,098	$	(207,270	)	$	—	$	—		$	2,204,828

Operating income	$	470,885	$	294		$	462,709	$	—		$	933,888

Net income attributable to Global Payments	$	305,734	$	294		$	459,742	$	(100,479	)	$	665,291

Diluted earnings per share attributable to Global Payments	$	1.24									$	2.69

Diluted weighted-average shares outstanding		247,160										247,160

	Three Months Ended March 31, 2024
	GAAP		Net Revenue Adjustments⁽¹⁾			Earnings Adjustments⁽²⁾		Income Taxes on Adjustments⁽³⁾			Non-GAAP

Revenues	$	2,420,187	$	(236,248	)	$	—	$	—		$	2,183,939

Operating income	$	452,252	$	462		$	456,791	$	—		$	909,505

Net income attributable to Global Payments	$	313,307	$	462		$	453,449	$	(133,030	)	$	634,188

Diluted earnings per share attributable to Global Payments	$	1.22									$	2.46

Diluted weighted-average number of shares outstanding		257,588										257,588

____________________

(1)			Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended March 31, 2025 and 2024, net revenue adjustments also included $0.3 million and $0.5 million, respectively, to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.

(2)			For the three months ended March 31, 2025, earnings adjustments to operating income included $329.3 million in cost of services (COS) and $137.4 million in selling, general and administrative expenses (SG&A). Adjustments to COS included amortization of acquired intangibles of $329.3 million. Adjustments to SG&A included acquisition, integration and separation expenses of $28.4 million, facilities exit charges of $4.7 million, charges for business transformation activities of $66.3 million, modernization charges of $9.3 million, charges related to the resolution of a certain legal matter of $18.3 million, and other items of $10.4 million.

			For the three months ended March 31, 2025, earnings adjustments to operating income also included the elimination of a $4.0 million gain on business dispositions.

			For the three months ended March 31, 2024, earnings adjustments to operating income included $343.2 million in COS and $113.6 million in SG&A. Adjustments to COS consisted of amortization of acquired intangibles of $343.2 million. Adjustments to SG&A included acquisition, integration and separation expenses of $78.9 million, employee severance charges of $24.9 million, and other items of $9.8 million.

(3)			Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.

			See “Non-GAAP Financial Measures” discussion on Schedule 8.

			Note: Amounts may not sum due to rounding.

SCHEDULE 6A
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED)
SUPPLEMENTAL SCHEDULE EXCLUDING EFFECT OF SHARE-BASED COMPENSATION EXPENSE
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands, except per share data)

	Three Months Ended March 31, 2025
	GAAP		Net Revenue Adjustments⁽¹⁾			Earnings Adjustments⁽²⁾		Income Taxes on Adjustments⁽³⁾			Non-GAAP

Revenues	$	2,412,098	$	(207,270	)	$	—	$	—		$	2,204,828

Operating income	$	470,885	$	294		$	501,313	$	—		$	972,492

Net income attributable to Global Payments	$	305,734	$	294		$	498,347	$	(107,968	)	$	696,407

Diluted earnings per share attributable to Global Payments	$	1.24									$	2.82

Diluted weighted-average number of shares outstanding		247,160										247,160

____________________

(1)		Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended March 31, 2025 and 2024, net revenue adjustments also included $0.3 million and $0.5 million, respectively, to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.

(2)		For the three months ended March 31, 2025, earnings adjustments to operating income included $329.3 million in COS and $176.0 million in SG&A. Adjustments to COS included amortization of acquired intangibles of $329.3 million. Adjustments to SG&A included share-based compensation expense of $38.6 million, acquisition, integration and separation expenses of $28.4 million, facilities exit charges of $4.7 million, charges for business transformation activities of $66.3 million, modernization charges of $9.3 million, charges related to the resolution of a certain legal matter of $18.3 million, and other items of $10.4 million.

		For the three months ended March 31, 2025, earnings adjustments to operating income also included the elimination of a $4.0 million gain on business dispositions.

(3)		Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used in determining the tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.

		See “Non-GAAP Financial Measures” discussion on Schedule 8.

		Note: Amounts may not sum due to rounding.

SCHEDULE 7
RECONCILIATION OF SEGMENT NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In thousands)

	Three Months Ended March 31, 2025
	GAAP			Net Revenue Adjustments⁽¹⁾			Earnings Adjustments⁽²⁾			Non-GAAP

Revenues:
Merchant Solutions	$	1,808,687		$	(116,833	)	$	—		$	1,691,854
Issuer Solutions		620,730			(91,915	)		—			528,815
Intersegment eliminations		(17,319	)		1,478			—			(15,841	)
	$	2,412,098		$	(207,270	)	$	—		$	2,204,828

Operating income (loss):
Merchant Solutions	$	614,102		$	(92	)	$	194,943		$	808,953
Issuer Solutions		109,318			386			135,240			244,944
Corporate		(256,528	)		—			136,518			(120,010	)
Gain on business disposition		3,993			—			(3,993	)		—
	$	470,885		$	294		$	462,709		$	933,888

	Three Months Ended March 31, 2024
	GAAP			Net Revenue Adjustments⁽¹⁾			Earnings Adjustments⁽²⁾			Non-GAAP

Revenues:
Merchant Solutions	$	1,834,094		$	(150,710	)	$	—		$	1,683,384
Issuer Solutions		602,735			(87,125	)		—			515,610
Intersegment eliminations		(16,642	)		1,587			—			(15,055	)
	$	2,420,187		$	(236,248	)	$	—		$	2,183,939

Operating income (loss):
Merchant Solutions	$	580,438		$	—		$	209,975		$	790,413
Issuer Solutions		106,097			462			134,843			241,401
Corporate		(234,283	)		—			111,973			(122,310	)
	$	452,252		$	462		$	456,791		$	909,505

____________________
(1)		Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefits to the company. For the three months ended March 31, 2025 and 2024, net revenue adjustments also included $0.3 million and $0.5 million, respectively, to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.

(2)		For the three months ended March 31, 2025, earnings adjustments to operating income included $329.3 million in COS and $137.4 million in SG&A. Adjustments to COS included amortization of acquired intangibles of $329.3 million. Adjustments to SG&A included acquisition, integration and separation expenses of $28.4 million, facilities exit charges of $4.7 million, charges for business transformation activities of $66.3 million, modernization charges of $9.3 million, charges related to the resolution of a certain legal matter of $18.3 million, and other items of $10.4 million.

		For the three months ended March 31, 2025, earnings adjustments to operating income also included the elimination of a $4.0 million gain on business dispositions.

		For the three months ended March 31, 2024, earnings adjustments to operating income included $343.2 million in COS and $113.6 million in SG&A. Adjustments to COS consisted of amortization of acquired intangibles of $343.2 million. Adjustments to SG&A included acquisition, integration and separation expenses of $78.9 million, employee severance charges of $24.9 million, and other items of $9.8 million.

		See “Non-GAAP Financial Measures” discussion on Schedule 8.

		Note: Amounts may not sum due to rounding.

SCHEDULE 8
OUTLOOK SUMMARY (UNAUDITED)
GLOBAL PAYMENTS INC. AND SUBSIDIARIES
(In millions, except per share data)

	2025 Growth
Revenues:
GAAP revenues	1%	to	2%
Adjustments⁽¹⁾		0%
FX impact		~1%
Constant currency (CC) adj net revenue	2%	to	3%
Dispositions		~3%
CC adjusted net revenue excluding dispositions	5%	to	6%

Earnings Per Share:
GAAP diluted EPS	5%	to	6%
Adjustments⁽²⁾		~4%
FX impact		~1%
Constant currency adjusted EPS	10%	to	11%

(1)			Includes adjustments to revenues for gross-up related payments (included in operating expenses) associated with certain lines of business to reflect economic benefit to the company. Amounts also included adjustments to eliminate the effect of acquisition accounting fair value adjustments for software-related contract liabilities associated with acquired businesses.

(2)			Adjustments to 2024 GAAP diluted EPS included the removal of 1) software-related contract liability adjustments described above of $0.01, 2) acquisition related amortization expense of $4.13, 3) acquisition, integration, and separation expense of $0.64, 4) charges for business transformation activities of $0.30, 5) employee termination benefits of $0.24, 6) non-cash charges for technology assets that will no longer be utilized under a revised technology architecture development strategy of $0.17, 7) modernization charges of $0.07, 8) non-cash asset write-offs for discontinued initiatives of $0.06, 9) facilities exit charges of $0.04, 10) gain/loss on business dispositions of $(0.83), 11) other income and expense of $(0.05), 12) discrete tax items of $0.04, 13) other items of $0.04, 14) the effect of noncontrolling interests and income taxes, as applicable.

Note: nm = not meaningful.

NON-GAAP FINANCIAL MEASURES

Global Payments supplements revenues, operating income, operating margin and net income, and earnings per share (EPS) determined in accordance with U.S. GAAP by providing these measures with certain adjustments (such measures being non-GAAP financial measures) in this document to assist with evaluating our performance. In addition to GAAP measures, management uses these non-GAAP financial measures to focus on the factors the company believes are pertinent to the daily management of our operations. The constant currency growth measures adjust for the impact of exchange rates and are calculated using average exchange rates during the comparable period in the prior year. Management uses these non-GAAP financial measures, together with other metrics, to set goals for and measure the performance of the business and to determine incentive compensation. Adjusted net revenue, adjusted operating income, adjusted operating margin, and adjusted EPS should be considered in addition to, and not as substitutes for, revenues, operating income, and EPS determined in accordance with GAAP. The non-GAAP financial measures reflect management’s judgment of particular items, and may not be comparable to similarly titled measures reported by other companies.

Adjusted net revenue excludes gross-up related payments associated with certain lines of business to reflect economic benefits to the company. On a GAAP basis, these payments are presented gross in both revenues and operating expenses. Management believes adjusted net revenue more closely reflects the economic benefits to the company’s core business and allows for better comparisons with industry peers.

Adjusted operating income, adjusted net income and adjusted EPS exclude acquisition-related amortization expense, acquisition, integration and separation expense, gains or losses on business dispositions, business transformation activities, and certain other items specific to each reporting period as more fully described in the accompanying reconciliations in Schedules 6 and 7. The tax rate used in determining the income tax impact of earnings adjustments is either the jurisdictional statutory rate in effect at the time of the adjustment or the jurisdictional expected annual effective tax rate for the period, depending on the nature and timing of the adjustment.

Adjusted operating margin is derived by dividing adjusted operating income by adjusted net revenue.

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Winnie Smith

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Emily Edmonds

KEYWORDS: United States North America New York Georgia

INDUSTRY KEYWORDS: Software Payments Finance Banking Professional Services Technology Fintech Other Technology

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