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Bausch + Lomb Launches Bi-Blade+™ Dual-Port Vitrectomy Cutter in Europe

• Increased cutting speed of 25,000 cuts per minute¹ is designed to minimize retinal traction,² increase vitreous flow¹ and reduce infusion pressure fluctuations when used with Adaptive Fluidics.^3*
• Bi-Blade+ provides an average flow rate increase of 25%, enabling more efficient vitreous removal compared to Bi-Blade^®.^1*†
• The resulting stability, efficiency and control help boost confidence for retina surgeons to deliver exceptional patient outcomes.

VAUGHAN, Ontario–(BUSINESS WIRE)–
Bausch + Lomb Corporation (NYSE/TSX: BLCO), a leading global eye health company dedicated to helping people see better to live better, today announced the European launch of the Bi-Blade+ advanced dual-port vitrectomy cutter on the Stellaris Elite^® Vision Enhancement System.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260507552089/en/

“The launch of Bi-Blade+ is the latest example of our commitment to delivering meaningful innovation in Europe,” said Luc Bonnefoy, president, Surgical, Bausch + Lomb. “Stellaris Elite has long been relied upon by European surgeons, and the 2024 Adaptive Fluidics software upgrade further enhanced the precise control and efficiency of the platform. We’re confident that the addition of Bi-Blade+ will also deliver meaningful benefits to retina surgeons and their patients.”

Bi-Blade+ provides an increased flow rate of 25%, enabling more efficient vitreous removal compared to Bi-Blade.^1* At maximum speed, Bi-Blade+ also demonstrates a 62% reduction in cutter vibration compared to Bi-Blade, offering the surgeon optimized feel and comfort toward a stable surgical experience.⁴

Adaptive Fluidics automates fluid infusion to the eye in response to real-time vacuum commands from the surgeon, delivering precise and responsive fluidics infusion at every step of a vitrectomy procedure.

These two technologies combine to support and maintain IOP stability and control. When combined with Adaptive Fluidics, Bi-Blade+ demonstrated a 62% reduction in average infusion pressure compared to surgeries in which Adaptive Fluidics was not used.³ Continuous aspiration also provides consistent intraocular pressure (IOP) stability.^3* In one study, use of Bi-Blade+ with Adaptive Fluidics resulted in a significant improvement in chamber IOP at a range closer to physiologic IOP (10 – 20 mmHg) even during high vacuum levels.^3**

“The higher cut rate of Bi-Blade+ offers a significant advantage when removing vitreous,” said Professor Marco Mura, MD, University of Ferrara, Ferrara, Italy. “The ability to increase flow rate while maintaining a small sphere of influence and calm environment means surgeons can have more confidence when working close to the retina.”

*Based on ex vivo and in vitro testing.

**Based on ex vivo and in vitro testing comparing original Bi-Blade to single-port cutter.

^†Bi-Blade^® is a trademark of Medical Instrument Development Laboratories, Inc. and is used by Bausch + Lomb under license.

Bi-Blade™+ Indications and Important Safety Information

Indications and Intended Use: The Bausch + Lomb vitrectomy cutter pouches are intended to cut and remove vitreous from the eye. They are indicated for any ocular condition requiring anterior vitrectomy during anterior segment surgery and for any vitreoretinal condition requiring vitrectomy during posterior or combined surgery.

Compatible Equipment: Stellaris Elite Bi-Blade+ accessories are only intended to operate with Bausch + Lomb Stellaris Elite vision enhancement systems with Bi-Blade+ procedure pack compatibility.

Known residual risks and complications include but are not limited to: infection; inflammation; ocular damage; trauma; cataract formation (not applicable in cataract removal procedures); foreign body/particulates in eye; intraocular pressure (IOP) variance that may cause damage to patient’s eye; visual impairment; ischemia; allergic reaction; edema.

ATTENTION: See the Instructions for Use for detailed directions, proper use, and full risk and safety information.

CAUTION: Federal (U.S.) Law restricts this device to sale, by or on the order of a physician.

About Bausch + Lomb

Our mission is simple – we help people see better to live better, all over the world. For nearly two centuries we’ve evolved with the changing needs of patients and customers, and our commitment to innovation and improving the standard of care in eye health has never been stronger. From contact lenses to prescription products, over-the-counter options, surgical devices and more, we’re turning bold ideas into better outcomes through passion, perseverance and purpose. Learn more at www.bausch.com and connect with us on Facebook, Instagram, LinkedIn, X and YouTube.

Forward-looking Statements

This news release may contain forward-looking information and statements within the meaning of applicable securities laws (collectively, “forward-looking statements”). Forward-looking statements may generally be identified by the use of the words “anticipates,” “seeks,” “expects,” “plans,” “should,” “could,” “would,” “may,” “will,” “believes,” “potential,” “pending” or “proposed” and variations or similar expressions. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties discussed in Bausch + Lomb’s filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. Bausch + Lomb undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

References

1. Heuer R, Papour A, Higgins G. Vitrectomy flow performance and optimized system settings for retina shaving with 25g, 25,000cpm dual-action vitrectomy probes. Poster presented at: ARVO conference; May 2025; Salt Lake City, UT.

2. Higgins G, Papour A. Comparison of traction, sphere of influence, and pulsatile flow in-vitro vitrectomy using 25 ga 25,000 CPM dual action vitrectomy probes and 25ga 7,500 CPM single action vitrectomy probes. Poster presented at: ARVO conference; May 2025; Salt Lake City, UT.

3. Papour A, Hosten L. Intraocular pressure (IOP) optimized performance settings with posterior adaptive fluidics (PAF), and 25 gauge 25,000 cpm dual-action vitrectomy cutters. Invest Ophthalmol Vis Sci. 2024;65(7). Association for Research in Vision and Ophthalmology 2024 abstract 914.

4. Data on file.

© 2026 Bausch + Lomb.

BBL.0008.USA.26

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507552089/en/

Media Contact:

Caryn Marshall

[email protected]

(908) 493-1381

Investor Contact:

George Gadkowski

[email protected]

(877) 354-3705 (toll free)

(908) 927-0735

KEYWORDS: North America Canada

INDUSTRY KEYWORDS: Health Optical Surgery

MEDIA:

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Unity Reports First Quarter 2026 Financial Results

SAN FRANCISCO–(BUSINESS WIRE)–
Unity (NYSE: U), the world’s leading game engine, today announced financial results for the first quarter ended March 31, 2026.

“We are delivering exceptional revenue growth and margin expansion while executing on the most exciting product roadmap in Unity’s history,” said Matt Bromberg, President & CEO of Unity. “More games, more creators, and more game discovery are all fueling the growth in our business.”

Select revenue highlights for Q1 2026 are as follows:

		Three Months Ended March 31,
		2026		2025		YoY Change
Total Revenue		$508,238		$435,000		17%
Strategic Grow Revenue		$278,681		$186,934		49%
Strategic Create Revenue		$153,734		$133,309		15%
Total Strategic Revenue		$432,415		$320,243		35%
Non-Strategic Revenue1		$75,823		$114,757		(34)%

1 Consists primarily of revenue from (i) our ironSource Ad network, which was sunsetted effective April 30, 2026, and (ii) our Supersonic publishing business which we intend to divest.

Q2 2026 Guidance²

• Total Revenue of $505 million to $515 million.

• Strategic Revenue of $455 million to $465 million, up 29% – 32% year-over-year
  • Strategic Grow Revenue of $302 million to $306 million, up 50% – 52% year-over-year

  • Strategic Create Revenue of $154 million to $158 million up 11% – 14% year-over-year, when excluding the impact of a $12 million one-time revenue item in the second quarter of 2025.

• Adjusted EBITDA of $130 million to $135 million, up 44% – 49% year-over-year

2 These statements are forward-looking and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.   We have not reconciled our estimates for non-GAAP financial measures in this press release and in the earnings call referencing this press release to GAAP due to the uncertainty and potential variability of expenses that may be incurred in the future. As a result, a reconciliation is not available without unreasonable effort and we are unable to address the probable significance of the unavailable information. We have provided a reconciliation of other GAAP to non-GAAP financial measures in the financial statement tables for our first quarter non-GAAP results included in this press release.

Earnings Webcast

Unity will hold a public webcast at 8:30 a.m. ET today to discuss the results for its first quarter 2026. The live public webcast can be accessed on Unity’s Investor Relations website at https://investors.unity.com. The webcast replay will also be available on the site.

First Quarter 2026 Results:

Total Revenue Highlights:

• Revenue was $508 million, compared to $435 million in the first quarter 2025.

• Create Solutions revenue was $157 million, compared to $150 million in the first quarter 2025.

• Grow Solutions revenue was $352 million, compared to $285 million in the first quarter 2025.

Profitability Highlights:

• GAAP net loss was $347 million, with a margin of (68)%; GAAP basic and diluted net loss per share was $0.80.

• Adjusted EBITDA was $138 million, with a margin of 27%; adjusted EPS was $0.23.

• Net cash provided by operating activities was $71 million; free cash flow was $66 million.

Revenue

Revenue was $508 million, up 17% year-over-year. Strategic revenue was $432 million, up 35% year-over-year.

Create Solutions revenue was $157 million, up 4% year-over-year. The increase was driven by increases in subscription revenue, partially offset by decreases in cloud and hosting services revenue, driven by our portfolio reset in 2025.

Grow Solutions revenue was $352 million, up 24% year-over-year. The change was due to growth in the Unity Ad Network, driven by “Unity Vector”, partially offset by decreases in the IronSource Ad Network.

Basic and Diluted Net Loss per share

Basic and diluted net loss per share was $0.80, as compared to $0.19 for the same period in 2025.

Net Loss and Net Cash Provided by Operating Activities

Net Loss for the quarter was $347 million, which includes $279 million of impairment charges, related to the sunset of the ironSource Ads Network, and planned divestiture of our Supersonic game publishing business. This compares to a net loss of $78 million in the first quarter of 2025.

Net Loss margin was (68)%, compared to (18)% in the first quarter of 2025.

Net cash provided by operating activities for the quarter was $71 million, compared to $13 million in the first quarter of 2025.

Adjusted EBITDA, Free Cash Flow, and Adjusted EPS

Adjusted EBITDA for the quarter was $138 million, with a margin of 27%, compared to $84 million in the first quarter of 2025, with a margin of 19%. The year-over-year improvement was driven by higher revenue and continued cost control.

Free cash flow for the quarter was $66 million, compared to $7 million in the first quarter of 2025.

Adjusted EPS for the quarter was $0.23, compared to $0.24 in the first quarter of 2025.

Liquidity

As of March 31, 2026, our cash and cash equivalents, and restricted cash was $2,146 million, and increased by $82 million, as compared with $2,064 million as of December 31, 2025. This increase was primarily driven by our operations.

About Unity

Unity [NYSE: U] offers a suite of tools to develop, deploy, and grow games and interactive experiences across all major platforms from mobile, PC, and console, to extended reality. For more information, visit Unity.com.

UNITY SOFTWARE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
	As of
	March 31, 2026			December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	2,140,861		$	2,055,840
Accounts receivable, net		654,003			643,611
Prepaid expenses and other		128,467			113,012
Total current assets		2,923,331			2,812,463
Property and equipment, net		54,314			68,289
Goodwill		3,166,304			3,166,304
Intangible assets, net		262,624			650,544
Other assets		115,168			140,006
Total assets	$	6,521,741		$	6,837,606
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	8,648		$	13,981
Accrued expenses and other		313,155			299,541
Publisher payables		393,016			431,494
Deferred revenue		229,506			224,405
Current portion of convertible notes		556,810			556,451
Total current liabilities		1,501,135			1,525,872
Convertible notes		1,679,560			1,678,899
Long-term deferred revenue		16,831			14,038
Other long-term liabilities		83,091			122,660
Total liabilities		3,280,617			3,341,469
Commitments and contingencies
Redeemable noncontrolling interests		259,168			252,637
Stockholders’ equity:
Common stock, $0.000005 par value:
Authorized shares – 1,000,000 and 1,000,000
Issued and outstanding shares – 436,401 and 432,860		2			2
Additional paid-in capital		7,461,858			7,378,295
Accumulated other comprehensive loss		257			(2,156	)
Accumulated deficit		(4,486,319	)		(4,138,709	)
Total Unity Software Inc. stockholders’ equity		2,975,798			3,237,432
Noncontrolling interest		6,158			6,068
Total stockholders’ equity		2,981,956			3,243,500
Total liabilities and stockholders’ equity	$	6,521,741		$	6,837,606

UNITY SOFTWARE INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except per share amounts)
(Unaudited)
	Three Months Ended
	March 31,
	2026			2025
Revenue	$	508,238		$	435,000
Cost of revenue		351,637			113,957
Gross profit		156,601			321,043
Operating expenses
Research and development		254,425			220,625
Sales and marketing		195,377			162,013
General and administrative		58,212			66,340
Total operating expenses		508,014			448,978
Loss from operations		(351,413	)		(127,935	)
Interest expense		(6,020	)		(5,891	)
Interest income and other income (expense), net		3,464			58,111
Loss before income taxes		(353,969	)		(75,715	)
Provision for (benefit from) Income taxes		(7,042	)		2,192
Net loss		(346,927	)		(77,907	)
Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interests		683			(265	)
Net loss attributable to Unity Software Inc.		(347,610	)		(77,642	)
Basic and diluted net loss per share attributable to Unity Software Inc.	$	(0.80	)	$	(0.19	)
Weighted-average shares used in computation of basic and diluted net loss per share		434,255			411,852
Net loss		(346,927	)		(77,907	)
Change in foreign currency translation adjustment		3,048			1,178
Comprehensive loss	$	(343,879	)	$	(76,729	)
Net income (loss) attributable to noncontrolling interest and redeemable noncontrolling interests		683			(265	)
Foreign currency translation attributable to noncontrolling interest and redeemable noncontrolling interests		635			254
Comprehensive income (loss) attributable to noncontrolling interest and redeemable noncontrolling interests		1,318			(11	)
Comprehensive loss attributable to Unity Software Inc.	$	(345,197	)	$	(76,718	)

UNITY SOFTWARE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
	Three Months Ended
	March 31,
	2026			2025
Operating activities
Net loss	$	(346,927	)	$	(77,907	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		127,255			96,217
Stock-based compensation expense		77,165			98,790
Gain on repayment of convertible note		—			(42,744	)
Impairment of intangible assets		270,506			—
Impairment of property and equipment		8,422			3,470
Impairment of investments		15,000			—
Other		1,469			(218	)
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable, net		(10,196	)		21,022
Prepaid expenses and other		(18,398	)		(10,602	)
Other assets		9,334			10,023
Accounts payable		(5,238	)		2,198
Accrued expenses and other		13,960			(21,029	)
Publisher payables		(38,478	)		(55,155	)
Other long-term liabilities		(39,947	)		(10,919	)
Deferred revenue		7,359			(120	)
Net cash provided by operating activities		71,286			13,026
Investing activities
Purchases of non-marketable investments		—			—
Purchases of intangible assets		—			—
Purchases of property and equipment		(4,829	)		(5,718	)
Net cash used in investing activities		(4,829	)		(5,718	)
Financing activities
Proceeds from issuance of convertible notes		—			690,000
Purchase of capped calls		—			(44,436	)
Payment of debt issuance costs		—			(13,236	)
Repayments of convertible note		—			(641,691	)
Proceeds from issuance of common stock upon exercise of stock options and purchase of ESPP shares		11,643			21,611
Net cash provided by financing activities		11,643			12,248
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash		3,688			4,197
Increase in cash, cash equivalents, and restricted cash		81,788			23,753
Cash, cash equivalents, and restricted cash, beginning of period		2,064,301			1,527,881
Cash, cash equivalents, and restricted cash, end of period	$	2,146,089		$	1,551,634

About Non-GAAP Financial Measures

To supplement our consolidated financial statements prepared and presented in accordance with generally accepted accounting principles in the United States (GAAP) we use certain non-GAAP financial measures, as described below, to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe the following non-GAAP measures are useful in evaluating our operating performance. We are presenting these non-GAAP financial measures because we believe, when taken collectively, they may be helpful to investors because they provide consistency and comparability with past financial performance.

However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. As a result, our non-GAAP financial measures are presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for our consolidated financial statements presented in accordance with GAAP.

We define adjusted EBITDA as GAAP net income or loss excluding benefits or expenses associated with stock-based compensation, amortization and impairment of acquired intangible assets, depreciation, restructurings and reorganizations, interest, income tax, and other non-operating activities, which primarily consist of foreign exchange rate gains or losses. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. We define adjusted gross profit as GAAP gross profit excluding expenses associated with stock-based compensation, amortization and impairment of acquired intangible assets, depreciation, and restructurings and reorganizations. We define adjusted gross margin as adjusted gross profit as a percentage of revenue.

We define adjusted cost of revenue as GAAP cost of revenue, excluding expenses associated with stock-based compensation, amortization and impairment of acquired intangible assets, depreciation, and restructurings and reorganizations. We define adjusted research and development expense as research and development expense, excluding expenses associated with stock-based compensation, amortization and impairment of acquired intangible assets, depreciation, and restructurings and reorganizations. We define adjusted sales and marketing expense as GAAP sales and marketing expense, excluding expenses associated with stock-based compensation, amortization and impairment of acquired intangible assets, depreciation, and restructurings and reorganizations. We define adjusted general and administrative expense as general and administrative expense excluding expenses associated with stock-based compensation, depreciation, and restructurings and reorganizations. We define free cash flow as net cash provided by operating activities less cash used for purchases of property and equipment.

We define adjusted EPS as net income or loss excluding benefits or expenses associated with stock-based compensation, amortization and impairment of acquired intangible assets, depreciation, restructurings and reorganizations, and the income tax impact of the preceding adjustments (cumulatively “adjusted net income”), increased by the tax effected impacts from any relevant dilutive securities, divided by the diluted weighted-average outstanding shares. The effective tax rate used in calculating adjusted EPS is estimated for each period, based on the net income or loss adjusted for the items noted above, and may differ from the effective rate used in our financial statements. Shares of common stock that are excluded in our calculation of GAAP diluted net loss per share due to their antidilutive impact on such calculations, are included in the diluted weighted average outstanding shares used in our calculation of adjusted EPS, to the extent they have a dilutive impact on adjusted EPS given the adjusted net income in each period.

UNITY SOFTWARE, INC.
Non-GAAP Reconciliation
(In thousands)
	Three Months Ended
	March 31,
	2026			2025
Adjusted EBITDA reconciliation
Revenue	$	508,238		$	435,000
GAAP net loss	$	(346,927	)	$	(77,907	)
Add:
Stock-based compensation expense	$	76,869		$	95,316
Amortization of intangible assets expense	$	117,414		$	85,650
Depreciation expense	$	9,841		$	10,567
Impairment of intangible assets	$	278,666		$	—
Restructuring and reorganization costs	$	6,903		$	20,345
Interest expense	$	6,020		$	5,891
Interest income and other income (expense), net	$	(3,464	)	$	(58,111	)
Provision for (benefit from) income taxes	$	(7,042	)	$	2,192
Adjusted EBITDA	$	138,280		$	83,943
GAAP net loss margin		(68	)%		(18	)%
Adjusted EBITDA margin		27	%		19	%
Adjusted gross profit reconciliation
GAAP gross profit	$	156,601		$	321,043
Add:
Stock-based compensation expense		7,382			9,112
Amortization of intangible assets expense		27,069			26,700
Depreciation expense		1,631			1,714
Impairment of intangible assets		226,516			—
Restructuring and reorganization costs		(53	)		534
Adjusted gross profit	$	419,146		$	359,103
GAAP gross margin		31	%		74	%
Adjusted gross margin		82	%		82	%
Operating expenses reconciliation
Cost of revenue
GAAP cost of revenue	$	351,637		$	113,957
Stock-based compensation expense		(7,382	)		(9,112	)
Amortization of intangible assets expense		(27,069	)		(26,700	)
Depreciation expense		(1,631	)		(1,714	)
Impairment of intangible assets		(226,516	)		—
Restructuring and reorganization costs		53			(534	)
Adjusted cost of revenue	$	89,092		$	75,897
GAAP cost of revenue as a percentage of revenue		69	%		26	%
Adjusted cost of revenue as a percentage of revenue		18	%		18	%
Research and development
GAAP research and development expense	$	254,425		$	220,625
Stock-based compensation expense		(38,628	)		(50,595	)
Amortization of intangible assets expense		(51,378	)		(16,530	)
Depreciation expense		(4,792	)		(5,266	)
Impairment of intangible assets		(3,998	)		—
Restructuring and reorganization costs		(3,576	)		(8,346	)
Adjusted research and development expense	$	152,053		$	139,888
GAAP research and development expense as a percentage of revenue		50	%		51	%
Adjusted research and development expense as a percentage of revenue		30	%		32	%
Sales and marketing
GAAP sales and marketing expense	$	195,377		$	162,013
Stock-based compensation expense		(14,172	)		(16,486	)
Amortization of intangible assets expense		(38,967	)		(42,420	)
Depreciation expense		(2,013	)		(2,154	)
Impairment of intangible assets		(46,969	)		—
Restructuring and reorganization costs		(2,314	)		(7,900	)
Adjusted sales and marketing expense	$	90,942		$	93,053
GAAP sales and marketing expense as a percentage of revenue		38	%		37	%
Adjusted sales and marketing expense as a percentage of revenue		18	%		21	%
General and administrative
GAAP general and administrative expense	$	58,212		$	66,340
Stock-based compensation expense		(16,687	)		(19,123	)
Depreciation expense		(1,405	)		(1,433	)
Impairment of intangible assets		(1,183	)		—
Restructuring and reorganization costs		(1,066	)		(3,565	)
Adjusted general and administrative expense	$	37,871		$	42,219
GAAP general and administrative expense as a percentage of revenue		12	%		15	%
Adjusted general and administrative expense as a percentage of revenue		7	%		10	%
Adjusted EPS reconciliation
GAAP net loss	$	(346,927	)	$	(77,907	)
Stock-based compensation expense		76,869			95,316
Amortization of intangible assets expense		117,414			85,650
Depreciation expense		9,841			10,567
Impairment of intangible assets		278,666			—
Restructuring and reorganization costs		6,903			20,345
Income tax impact of adjusting items		(37,534	)		(27,764	)
Adjusted net income used for calculation of adjusted EPS, before impact of dilutive instruments	$	105,232		$	106,207
Increase from forgone financing costs on dilutive convertible notes, net of tax		4,668			4,597
Adjusted net income used for calculation of adjusted EPS, including impact of dilutive instruments	$	109,900		$	110,804
Weighted-average common shares used in GAAP diluted net loss per share attributable to Unity Software Inc.		434,255			411,852
Convertible notes		41,348			30,494
Stock options and PVOs		2,941			6,863
Unvested RSUs, PVUs, and PSUs		6,805			5,166
ESPP		127			650
Non-GAAP weighted-average common shares used in adjusted EPS		485,476			455,025
GAAP diluted net loss per share attributable to Unity Software Inc.		(0.80	)		(0.19	)
Total impact on diluted net loss per share attributable to Unity Software Inc. from non-GAAP adjustments		1.04			0.45
Total impact on diluted net loss per share attributable to Unity Software Inc. from antidilutive common stock now included		(0.01	)		(0.02	)
Adjusted EPS		0.23			0.24
Free cash flow reconciliation
Net cash provided by operating activities	$	71,286		$	13,026
Less:
Purchases of property and equipment		(4,829	)		(5,718	)
Free cash flow		66,457			7,308
Net cash used in investing activities		(4,829	)		(5,718	)
Net cash provided by financing activities		11,643			12,248

Cautionary Statement Regarding Forward-Looking Statements

This press release and the earnings call referencing this press release contain “forward-looking statements,” as that term is defined under federal securities laws, including statements regarding Unity’s outlook and future financial performance, including, but not limited to: (i) Unity’s ability to further enhance its platform, accelerate product innovation and enhance financial performance; (ii) expectations regarding Vector, including expectations regarding Vector’s improvements and performance and the expansion of Vector across both Create and Grow solutions; (iii) our strategic initiatives, including our continued investment and focus on artificial intelligence tools; (iv) expectations regarding Vector leveraging behavioral data available through Unity Runtime, including expectations of multi-year growth of the product portfolio and its impact on financial results; (v) statements regarding our product roadmap, products, projects, technology and ongoing product development; (vi) expectations regarding growth of Vector and its impact on Unity’s overall growth prospects, as well as revenue mix; (vii) statements regarding industry trends and business model evolution; (viii) statements regarding our market opportunity; (ix) expectations regarding our competitive position and growth prospects; (x) expectations regarding improvements in operating margins; (xi) expectations regarding future profitability, including our expectation to become GAAP profitable by the fourth quarter of 2026; (xii) plans to pay off future obligations; and (xiii) Unity’s financial guidance for future periods. The words “aim,” “believe,” “may,” “will,” “estimate,” “continue,” “intend,” “expect,” “plan,” “project,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to, those related to: (i) the impact of macroeconomic conditions, such as inflation, high interest rates, tariffs, sanctions and trade barriers, and limited credit availability which could further cause economic uncertainty and volatility; (ii) Unity’s ability to compete effectively; (iii) adverse changes in the geopolitical relationship between the U.S. and China; (iv) Unity’s ability to develop, deploy, maintain, manage, or commercialize artificial intelligence-enabled products; (v) Unity’s ability to address issues raised by the development or use of artificial intelligence in its offerings, or the use of artificial intelligence by its customers, personnel, vendors and competitors; (vii) Unity’s ability to execute its plans to realign its business and to right-size its investments, including the sunset of the ironSource Ads Network and the planned divestiture of its Supersonic game publishing business; (vii) the impact of any decisions to change how Unity prices its products and services; (viii) Unity’s ability to achieve and sustain profitability; (ix) Unity’s ability to retain existing customers and expand the use of its platform, or attract new customers; (x) Unity’s ability to further expand into adjacent business areas or new industries; (xi) the impact of any changes of terms of service, policies or technical requirements from operating system platform providers or application stores which may result in changes to Unity or its customers’ business practices; (xii) Unity’s ability to maintain favorable relationships with hardware, operating system, device, game console and other technology providers; (xiii) breaches in its security measures, unauthorized access to its platform, data, or its customers’ or other users’ personal data; (xiv) Unity’s ability to manage growth effectively and manage costs effectively; (xv) the rapidly changing and increasingly stringent laws, regulations, contractual obligations and industry standards that relate to privacy, data security and the protection of children; (xvi) Unity’s ability to attract, manage and retain its talent; (xvii) Unity’s ability to adapt effectively to rapidly changing technology, evolving industry standards, changing regulations, or changing customer needs, requirements, or preferences; and (xviii) the effectiveness of Vector. Further information on these and additional risks that could affect our results is included in our filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K filed with the SEC on February 11, 2026 and our future reports that we may file with the SEC from time to time, which could cause actual results to vary from expectations. Copies of reports filed with the SEC are available on the Unity Investor Relations website. Statements herein speak only as of the date of this release, and Unity assumes no obligation to, and does not currently intend to, update any such forward looking statements after the date of this release except as required by law.

Source: Unity Software Inc.

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Polestar reports Q1 2026 select financial and operational results

• Record first quarter volumes of 13,126 cars, a growth of 7% year-on-year

• Largest product offensive launched: four new models planned in next three years

• Performance impacted by intensified competition, EU and US tariffs, FX and seasonality offsetting continued cost reductions

• Strengthened capital structure and improved liquidity position

• Cash position of USD 676 million as of end Q1 2026

GOTHENBURG, Sweden–(BUSINESS WIRE)–
Polestar (Nasdaq: PSNY) reports select unaudited financial and operational results for the quarter ended March 31, 2026 (Q1 2026).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260507811327/en/

Michael Lohscheller, Polestar CEO, said: “The first quarter saw us deliver strong volume growth in a very competitive market. With implemented steps to improve our cost base being offset by more challenging market conditions, we are accelerating efforts to adjust our business model, become leaner and improve manufacturing efficiencies.

“Commercially, our focus remains on scaling our business by expanding our retail network, especially in Europe, with plans to reach 250 sales points globally by the end of 2026. This will help us capitalise on our growing model line-up, which targets wider, more profitable segments. Deliveries of the new Polestar 4 variant are planned to start during the latter part of the year, closely followed by the all-new Polestar 2 in 2027 and thereafter Polestar 7 compact SUV.”

Key financial highlights

(in millions of U.S. dollars)		For the three months ended March 31,
		2026		2025		Change, %
Retail sales, units		13,126		12,263		7.0
Revenue		633		632		0.2
Gross (Loss) / Profit		(20)		65		(130.8)
Gross margin, %		(3.2)%		10.3%		-13.5 ppts
Adjusted Gross (Loss) / Profit (non-GAAP) 1		(21)		65		(132.3)
Adjusted Gross Margin (non-GAAP) 1, %		(3.3)%		10.3%		-13.6ppts
Net loss		(383)		(166)		(130.7)
Adjusted EBITDA (non-GAAP) 1		(235)		(96)		(144.8)

(1)

Non-GAAP measures. See the reconciliation of non-GAAP metrics to the nearest GAAP measure in Appendix A.

• Retail sales totaled an estimated 13,126 cars, up 7.0% YoY from 12,263 cars a year earlier, supported by continuous retail expansion, an attractive model line-up, and growing sales of Polestar 4.

• Revenue of USD 633 million, up 0.2% from USD 632 million in the comparable period, driven predominantly by higher volumes and positive foreign exchange impact related to the pound sterling and euro movements against the U.S. dollar offset mainly by significant pressure on pricing, the product mix, which included fewer Polestar 3 cars but more Polestar 4 vehicles and lower carbon credits sales. Carbon credits sales totaled USD 21 million in the period down from USD 29 million a year earlier, of which USD 17 million was booked as revenue and USD 4 million was booked in other operating income.

• Gross margin at (3.2)%, from 10.3% in Q1 2025, and Adjusted Gross Margin at (3.3)%, from 10.3% in Q1 2025, due mainly to further pressure on pricing, EU and US tariffs, lower carbon credits sales and one-off impacts, partially offset by growth in volumes, an increasing share of higher margin Polestar 4 in the product mix and continued product cost reduction.

• Net loss of USD (383) million, compared to net loss of USD (166) million a year earlier, driven by gross loss result, and mainly the negative foreign exchange impact related to Chinese yuan movements on operating and financing liabilities. Selling, General and Administrative (SG&A) expenses were impacted by higher sales agent remuneration linked to growth of volumes, one-off personnel-related costs and the timing of marketing events despite ongoing strict cost discipline across SG&A; Research and Development (R&D) expenses were stable.

• Adjusted EBITDA of USD (235) million, compared to adjusted EBITDA of USD (96) million in the comparable period, due mainly to gross loss result, factors mentioned above and negative foreign exchange movements on operating liabilities.

• Cash position of USD 676 million compared to USD 1,159 million as of December 31, 2025. The change in the cash position was primarily driven by Adjusted EBITDA loss, net negative movement in working capital and net repayment of financing facilities offset by equity proceeds in the first quarter of 2026. While inventory levels reduced, this positive impact on working capital was more than offset by cash outflows from settlement of payables.

• Further details are provided in the reconciliation table for non-GAAP measures in Appendix A.

Key operational highlights

The table below summarizes key operational highlights for the three months ended March 31, 2026:

		For the three months ended March 31,
		2026		2025		Change, %
Retail sales 1		13,126		12,263		7.0
including external vehicles with repurchase obligations		350		182		92.3
including internal vehicles		724		406		78.3
Markets2		28		27		+ 1 market
Sales points3,4		230		159		44.7
of which sales points, excluding China		230		154		49.4
Service points5		1,241		1,190		4.3

(1)		Retail sales figures are sales to end customers. Retail Sales include new cars handed over via all sales channels and all sales types, including but not restricted to internal, fleet, retail, rental and leaseholders’ channels across all markets irrespective of their market model and setup and may or may not generate revenue directly for Polestar.
(2)		Represents the markets in which Polestar operates.
(3)		Represents Sales Points, including retail locations which are physical facilities (such as showrooms), actively selling Polestar cars, and pre-space activations, which represent locations with an ongoing project to build a retail location that have already started selling Polestar cars.
(4)		In April 2025, Polestar signed an agreement to terminate the business of the Joint Venture and transfer the PRC distribution rights and certain assets from the JV to Polestar, so as to allow Polestar to resume direct sales, customer service and distribution activities in the Chinese market.
(5)		Represents Volvo Cars service centers to provide access to customer service points worldwide in support of Polestar’s international expansion.

• Sales points continue to grow, as the transition to an active selling model continues and we ramp up retail expansion. In Q1 2026, Polestar opened 19 new retail sales points bringing the total to 230 sales points at the end of Q1 2026. During the same period, Polestar signed up 14 new retailers, to reach the total of 172 retail partners, an increase of 8.9% from the end of December 2025.

• The increase in external sales with a repurchase obligation is primarily related to the commercial activity in the German market.

• Polestar increased sales of internal cars to support its retail network expansion in Europe.

Key loan facilities and funding highlights

• Over USD 1.4 billion worth of facilities renewed in Q1 2026
  • In February 2026, Green Trade Finance Facility (TFF) with a syndicate of global banks restructured and renewed for EUR 400 million. Additionally, approximately USD 570 million in working capital loans were renewed.

  • In March 2026, approx. USD 380 million in working capital facilities were renewed.

• An additional EUR 50 million to Green Trade Finance Facility (TFF) has been credit-approved by Fubon Bank (Hong Kong) Limited, subject to completion of the relevant syndicate documentation.

• As previously announced, during Q1 2026, Polestar secured a total of USD 0.7 billion of new equity from several financial institutions. Concurrent with their equity investments, these financial institutions each entered into a put option arrangement with a wholly-owned subsidiary of Geely Sweden Holdings AB. These equity investments consist of the following:
  • In February 2026, Polestar secured USD 400 million from Feathertop Funding Limited, a special purpose vehicle consolidated to Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Hong Kong) Limited.

  • In March 2026, Polestar secured USD 300 million from investors including Credit Agricole CIB, Vida France S.A., Innovator Limited and Proximaster Holdings Company.

• Geely Sweden and Volvo Cars agreed to convert approx. USD 639 million of loans outstanding to Polestar into equity with USD 274 million converted by Volvo Cars on March 31, 2026; Geely Sweden is expected to convert approx. USD 300 million and Volvo Cars is expected to convert approx. USD 65 million later in Q2 2026.

• On March 31, 2026, Volvo Cars extended the remaining USD 726 million shareholder loan to December 2031.

As previously announced regarding the Company’s USD 950 million ‘Club loan’, by end of Q1 2026, the revenue and debt-to-asset ratio covenant tests have been agreed upon and amended for Q1 2026 and the remaining test periods of 2026.

The Company was in compliance with all its covenants as of March 31, 2026.

With the support from Geely Holding Group, we have implemented significant steps to strengthen our balance sheet and improve our debt and liquidity positions, and we continue to consider new equity and debt funding.

Conference call

Michael Lohscheller, CEO, and Jean-Francois Mady, CFO, will host a conference call today, May 7, 2026, at 14:00 CET. To join the call, please use this link https://edge.media-server.com/mmc/p/tii8h4jg or follow the instructions available under Events on the Polestar Investor Relations website.

Publication of UK Annual Report and Accounts

The Company’s UK Annual Report and Accounts has been published and is available to download via the Investor Relations website: https://investors.polestar.com/financial-information/annual-reports.

Notes

All financial figures are in millions of U.S. dollars (USD). Unless stated otherwise, the performance shown in this press release covers the three-month period ended March 31, 2026 (Q1 2026), compared to the three-month period ended March 31, 2025 (Q1 2025).

Calendar

Polestar expects to report its retail sales volumes for Q2 2026 on July 9, 2026.

About Polestar

Polestar (Nasdaq: PSNY) is the Swedish electric performance car brand with a focus on uncompromised design and innovation, and the ambition to accelerate the change towards a sustainable future. Headquartered in Gothenburg, Sweden, its cars are available in 28 markets globally across North America, Europe, and Asia Pacific.

Polestar has four models in its line-up: Polestar 2, Polestar 3, Polestar 4, and Polestar 5. Planned models include Polestar 4 new variant (to be introduced in the last quarter of 2026), Polestar 2 successor (to be launched early in 2027), Polestar 7 compact SUV (to be introduced in 2028) and the Polestar 6 roadster. With its vehicles currently manufactured on two continents, North America and Asia, Polestar is diversifying its manufacturing footprint further, with production of Polestar 7 planned in Europe.

Polestar has an unwavering commitment to sustainability and has set an ambitious roadmap to reach its climate targets: halve greenhouse gas emissions by 2030 per-vehicle-sold and become climate-neutral across its value chain by 2040. Polestar’s comprehensive sustainability strategy covers the four areas of Climate, Transparency, Circularity, and Inclusion.

Statement regarding unaudited financial and operational results

The unaudited financial and operational information published in this press release is subject to potential adjustments. Potential adjustments to operational and consolidated financial information may be identified from work performed during Polestar’s year-end audit. This could result in differences from the unaudited operational and financial information published herein. For the avoidance of doubt, the unaudited operational and financial information published in this press release should not be considered a substitute for the financial information filed with the SEC in Polestar’s Annual Reports on Form 20-F.

Forward-looking statements

Certain statements in this press release (“Press Release”) may be considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or the future financial or operating performance of Polestar including the number of vehicle deliveries and gross margin. For example, projections of revenue, volumes, margins, cash flow break-even and other financial or operating metrics and statements regarding expectations of future needs for funding and plans related thereto are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential”, “forecast”, “plan”, “seek”, “future”, “propose” or “continue”, or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements.

These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Polestar and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) Polestar’s ability to enter into or maintain agreements or partnerships with its strategic partners, including Volvo Cars and Geely, original equipment manufacturers, vendors and technology providers; (2) Polestar’s ability to maintain relationships with its existing suppliers, source new suppliers for its critical components and enter into longer term supply contracts and complete building out its supply chain; (3) Polestar’s ability to raise additional funding; (4) Polestar’s ability to successfully execute cost-cutting activities and strategic efficiency initiatives; (5) Polestar’s estimates of expenses, profitability, gross margin, cash flow, and cash reserves; (6) Polestar’s ability to continue to meet stock exchange listing standards; (7) changes in domestic and foreign business, market, financial, political and legal conditions; (8) demand for Polestar’s vehicles or car sale volumes, revenue and margin development based on pricing, variant and market mix, cost reduction efficiencies, logistics and growing aftersales; (9) delays in the expected timelines for the development, design, manufacture, launch and financing of Polestar’s vehicles and Polestar’s reliance on a limited number of vehicle models to generate revenues; (10) increases in costs, disruption of supply or shortage of materials, in particular for lithium-ion cells or semiconductors; (11) risks related to product recalls, regulatory fines and/or an unexpectedly high volume of warranty claims; (12) Polestar’s reliance on its partners to manufacture vehicles at a high volume, some of which have limited experience in producing electric vehicles, and on the allocation of sufficient production capacity to Polestar by its partners in order for Polestar to be able to increase its vehicle production volumes; (13) the ability of Polestar to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (14) risks related to future market adoption of Polestar’s offerings; (15) risks related to Polestar’s current distribution model and the evolution of its distribution model in the future; (16) the effects of competition and the high barriers to entry in the automotive industry and the pace and depth of electric vehicle adoption generally on Polestar’s future business; (17) changes in environmental laws, regulatory requirements (including existing regulations related to connected vehicles as well as impacts from potential or existing laws and regulations that may prevent the importation of certain electric vehicles into the US), governmental incentives, tariffs (including potentially higher than expected tariffs if customs authorities determine a vehicle does not qualify for a lower tariff due to the origin of component parts) and fuel and energy prices; (18) Polestar’s reliance on the development of vehicle charging networks to provide charging solutions for its vehicles and its strategic partners for servicing its vehicles and their integrated software; (19) Polestar’s ability to establish its brand and capture additional market share, and the risks associated with negative press or reputational harm, including from electric vehicle fires; (20) the outcome of any potential litigation, including litigation involving Polestar and Gores Guggenheim, Inc., government and regulatory proceedings, including the NHTSA investigation into the Polestar 2 rear view camera, tax audits, investigations and inquiries; (21) Polestar’s ability to continuously and rapidly innovate, develop and market new products; (22) the impact of the ongoing conflict between Ukraine and Russia and the conflict with Iran and the conflict in the Red Sea; and (23) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Polestar’s Form 20-F, and other documents filed, or to be filed, with the SEC by Polestar. There may be additional risks that Polestar presently does not know or that Polestar currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements.

Nothing in this Press Release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Polestar assumes no obligation to update these forward-looking statements, even if new information becomes available in the future, except as may be required by law.

APPENDIX A

Polestar Automotive Holding UK PLC

Non-GAAP Financial Measures

Polestar uses both generally accepted accounting principles (“GAAP,” i.e., IFRS) and non-GAAP (i.e., non-IFRS) financial measures to evaluate operating performance and for other strategic and financial decision-making purposes. Polestar believes non-GAAP financial measures are helpful to investors as they provide useful perspective on underlying business trends and assist in period-on-period comparisons. These measures also improve the ability of management and investors to assess and compare the financial performance and position of Polestar with those of other companies.

These non-GAAP measures are presented for supplemental information purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. The measures are not presented under a comprehensive set of accounting rules and, therefore, should only be read in conjunction with financial information reported under GAAP when assessing Polestar’s operating performance.

The measures may not be the same as similarly titled measures used by other companies due to possible differences in calculation methods and items or events being adjusted. A reconciliation between non-GAAP financial measures and the most comparable GAAP performance measures is provided below.

Non-GAAP financial measures used by management are Adjusted EBITDA, Free Cash Flow, Adjusted Gross Profit / (Loss) and Adjusted Gross Margin.

Adjusted EBITDA is calculated as net loss, adjusted to exclude:

• Fair value change – Earn-out rights and Class C Shares;

• Finance expense;

• Finance income;

• Foreign exchange gains (losses) on financial activities, net;

• Income tax benefit (expense);

• Depreciation and amortization¹;

• Impairment of property, plant and equipment, vehicles under operating leases, and intangibles assets, net of reversals;

• Gains (losses) on disposals of investments²;

• Restructuring costs³; and

• Unusual other operating income and expenses that are considered rare or discrete events and are infrequent in nature.

1 – Depreciation and amortization includes (a) depreciation and amortization capitalized into the carrying value of inventory sold (i.e., part of inventory costs) and (b) depreciation and amortization expense.

2 – Disposals of investments include disposals, by sales or otherwise, of: (a) debt or equity financial instruments issued by another entity that are held as investments, (b) intangible assets, (c) property, plant, and equipment, and (d) groups of assets and liabilities representing disposal groups that were transferred together as part of individual transactions.

3 – Restructuring costs include expenses associated with programs that were planned and controlled by management, and materially changed either (a) the scope of a business undertaken by the Group or (b) the manner in which business is conducted.

Management reviews this measure and believes it provides meaningful insight into the core business’s underlying operating performance and trends, before the effect of any adjusting items.

Free Cash Flow

Free Cash Flow is calculated as cash used for operating activities plus cash used to acquire property, plant and equipment and intangible assets. This measure is reviewed by management and management considers it to be a relevant measure for assessing cash generated by operating activities that are available to repay debts and spend on other strategic initiatives.

Adjusted Gross Profit / (Loss) and Adjusted Gross Margin

Adjusted Gross Profit / (Loss) is calculated as gross profit / (loss), adjusted to exclude: (i) expenses arising from the impairment of property, plant and equipment, vehicles under operating leases, and intangible assets; and (ii) unusual other items of income or expense that are considered rare or discrete events and are infrequent in nature. Adjusted Gross Margin is calculated as Adjusted Gross Profit / (Loss) divided by revenue. These measures are reviewed by management and management considers them to be useful measures for assessing Polestar’s historical operating performance as they facilitate comparison between periods by excluding the non-cash impairment expense, the measurement of which includes significant assumptions related to future periods, and other items which are considered rare or discrete.

Unaudited reconciliation of Non-GAAP measures

Adjusted EBITDA
(in millions of U.S. dollars)		For the three months ended March 31,
		2026			2025
Adjusted EBITDA
Net loss		(383	)		(166	)
Fair value change – Earn-out rights and Class C shares		(3	)		(11	)
Finance expense1		99			93
Finance income1		(3	)		(6	)
Foreign exchange losses / (gains) on financial activities, net1		13			(31	)
Income tax expense / (benefit)		11			(1	)
Depreciation and amortization		33			31
Impairment reversals		(1	)		—
Restructuring costs		(1	)		—
Unusual other operating income and expense, net		—			(5	)
Adjusted EBITDA		(235	)		(96	)

1 – Some values for the period ended March 31, 2025 were re-presented.

(in millions of U.S. dollars)		For the three months ended March 31,
		2026			2025
Adjusted Gross Profit / (Loss)
Gross (Loss) / Profit		(20	)		65
Impairment reversals		(1	)		—
Adjusted Gross Profit / (Loss)		(21	)		65

(in millions of U.S. dollars)		For the three months ended March 31,
		2026			2025
Adjusted Gross Margin
Adjusted Gross Profit / (Loss) (a)		(21	)		65
Revenue (b)		633			632
Adjusted Gross Margin (a/b)		(3.3	)%		10.3	%

 

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Anna Gavrilova

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Theo Kjellberg

Head of Corporate Communications

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Optimum Reports First Quarter 2026 Results

NEW YORK–(BUSINESS WIRE)–
Optimum Communications, Inc. (NYSE: OPTU) today reports results for the first quarter ended March 31, 2026.

Dennis Mathew, Optimum Chairman and Chief Executive Officer, said: “The first quarter reflects the deliberate choices we are making to build a more resilient business over time. We continued to navigate an intense competitive environment with strategic focus, executing against our core priorities of strengthening broadband trends, maintaining financial discipline, and investing for long-term value creation. These efforts contributed to year-over-year margin expansion, underscoring our focus on operating efficiency and disciplined execution. In doing so, we took meaningful steps toward simplifying how we go to market, improving the quality of our subscriber base and advancing our convergence strategy to drive more consistent returns. We were encouraged by strong momentum in mobile, which delivered its strongest quarter in six years with 52k net additions, reinforcing our conviction in multi-product relationships, with growth increasingly driven by customers with stronger engagement, supporting lower churn and improved lifetime value. We believe these actions, alongside our ongoing work to evolve our capital structure, are the right foundation for creating durable long-term value for our customers, our employees, and our shareholders.”

First Quarter 2026 Overview

• Total revenue of $2.07 billion in Q1 2026 (-4.0% year over year)
• Residential revenue of $1.56 billion in Q1 2026 (-6.5% year over year)
  • Residential average revenue per user (ARPU)⁽¹⁾ $132.32 (-1.2% year over year)

  • Convergence ARPU⁽²⁾ $79.32 (+1.2% year over year)

• Net loss attributable to stockholders of ($2,884.1) million (($6.10)/share on a diluted basis) in Q1 2026, includes a non-cash impairment charge of $2.7 billion related to our indefinite-lived cable franchise rights, compared to ($75.7) million(($0.16)/share on a diluted basis) in Q1 2025
• Net cash flows from operating activities of $170.3 million (-9.2% year over year) in Q1 2026
• Adjusted EBITDA⁽³⁾ of $789.0 million (-1.3% year over year), margin of 38.2% in Q1 2026
• Cash capital expenditures of $307.7 million (-13.6% year over year), capital intensity⁽⁴⁾of 14.9%in Q1 2026
• Free Cash Flow (deficit)⁽³⁾ of ($137.4) million in Q1 2026 compared to ($168.6) million in Q1 2025

First Quarter 2026 Key Operational Highlights

• Advancing Broadband Strategy Amid Competitive Market; Net Losses of 64k
  • Total broadband primary service units (PSUs) net losses of -64kin Q1 2026⁽⁵⁾, which includes an adjustment related to prior periods of 8k, compared to -37k in Q1 2025, ending total broadband subscribers of 4.1 million

  • Advancing a simplified go-to-market approach and proactive base management initiatives to improve sales momentum, customer lifetime value and reduce churn

  • Residential broadband customer base continues to move to higher speed tiers, with 47% of the base taking 1 Gig or higher speeds at the end of Q1 2026, which grew in the last 3 years from 21% in Q1 2023

• Best Mobile Line Net Add Performance in 6 Years, with +52k Line Net Additions in Q1 2026
  • Mobile line net additions of +52k in Q1 2026, representing the strongest quarterly performance in six years, bringing total mobile lines to 674k

  • Residential mobile service revenue grew 35% year over year to $50 million in Q1 2026, compared to $37 million in Q1 2025

  • Residential mobile penetration of the broadband base⁽⁶⁾ reached 8.8% at end of Q1 2026, compared to 6.3% in Q1 2025

• Improved Video Margin and Churn Supported by Adoption of New Tiered Offerings
  • New tiered video packages, Entertainment TV, Extra TV, and Everything TV reached 17% penetration of the residential video base at the end of Q1 2026, up from 6% in Q1 2025

  • Continued migration from legacy video packages to new tiered offerings improves retention and strengthens video margin profile

  • Video gross margin in Q1 2026 expanded by approximately 1,000 basis points in the last three years compared to Q1 2023

  • Annualized video churn improved by approximately 690 basis points year over year in Q1 2026

  • Residential video ARPU⁽⁷⁾ grew +3.7% year-over-year, partially offsetting video volume declines in revenue

• Driving Margin Expansion Through Cost Discipline and Efficiency
  • Gross margin of 69.4% in Q1 2026 expanded by 60 basis points year over year

  • Adjusted EBITDA⁽³⁾ margin of 38.2% in Q1 2026 expanded by 110 basis points year over year, reflecting cost discipline

  • Efficiency gains were driven by workforce productivity initiatives, lower truck rolls, and increased use of AI-enabled tools and automation

• Expanding and Enhancing Our Networks
  • Added +38k total new passings in Q1 2026 and +190k total new passings in the last twelve months (LTM)

  • At the end of Q1 2026, approximately 96% of the total footprint had 1 Gig or higher speeds available

  • Lightpath expansion continues to progress, with capital being deployed to support the previously announced $362 million of total contract value of AI-driven awards

Balance Sheet Review as of March 31, 2026

• Consolidated net debt⁽⁸⁾ for Optimum Communications was $25,488 million, representing consolidated net leverage of 7.5x L2QA⁽⁹⁾
  • The weighted average cost of debt for consolidated Optimum Communications was 6.8% and the weighted average life of debt was 3.1 years

• Net debt⁽⁸⁾ for CSC Holdings, LLC Restricted Group was $21,200 million, representing net leverage of 20.3x L2QA⁽⁹⁾
  • The weighted average cost of debt for CSC Holdings, LLC Restricted Group was 6.6% and the weighted average life of debt was 3.0 years

• Consolidated net debt⁽⁸⁾ for Cablevision Litchfield, LLC and CSC Optimum Holdings, LLC (the “UnSub Group”) was $2,751 million, representing consolidated net leverage of 1.4x L2QA⁽⁹⁾
  • The weighted average cost of debt for the UnSub Group was 9.0% and the weighted average life of debt was 2.7 years

• Consolidated net debt⁽⁸⁾ for Lightpath was $1,560 million, representing net leverage of 4.8x L2QA⁽⁹⁾
  • The weighted average cost of debt for Lightpath Consolidated was 5.6% and the weighted average life of debt was 4.9 years

Shares Outstanding

• As of March 31, 2026, Optimum Communications had 476,283,057 combined shares of Class A and Class B common stock outstanding

Recent Refinancing Activity

• On March 3, 2026, Cablevision Lightpath LLC (“Lightpath”), through its wholly owned and bankruptcy-remote indirect subsidiary Lightpath Fiber Issuer LLC, refinanced all of its outstanding indebtedness through an asset-backed securitization transaction. In connection with the refinancing, Lightpath repaid in full and terminated all prior debt facilities, including its senior notes due 2028, senior secured notes due 2027 and its term loan facility balance previously outstanding.

• On January 12, 2026, Cablevision Litchfield, LLC (“Cablevision Litchfield”) and CSC Optimum Holdings, LLC (“CSC Optimum”), each indirect wholly-owned subsidiaries of Optimum Communications, entered into an amended and restated credit agreement, providing for an incremental term loan commitment in an aggregate principal amount of $1.1 billion. This loan commitment has the same terms as the initial term loans extended pursuant to the credit agreement with JPMorgan Chase Bank, N.A. (entered into in November 2025) including maturity, interest rate and amortization. The proceeds from the loans made pursuant to the incremental term loan commitment were used to refinance all of the outstanding debt under a receivables facility loan and security agreement (entered into in July 2025) and pay certain fees and expenses relating to the foregoing, with any remaining proceeds being used for general corporate purposes.

Customer Metrics (in thousands, except per customer amounts)
	Q1-24	Q2-24	Q3-24(10)	Q4-24(11)	FY-24(11)	Q1-25	Q2-25	Q3-25	Q4-25	FY-25	Q1-26(5)
Total Passings(12)	9,679.3	9,746.4	9,784.7	9,830.8	9,830.8	9,856.1	9,891.5	9,942.9	10,008.2	10,008.2	10,045.9
Total Passings additions	50.6	67.2	38.3	54.4	210.4	25.2	35.4	51.4	65.2	177.3	37.8
Total Customer Relationships(13)(14)
Residential	4,326.8	4,272.3	4,217.5	4,173.7	4,173.7	4,130.5	4,088.0	4,028.6	3,963.8	3,963.8	3,897.0
SMB	379.7	379.7	378.4	376.6	376.6	375.3	374.3	371.9	369.9	369.9	367.1
Total Unique Customer Relationships	4,706.5	4,652.0	4,595.9	4,550.3	4,550.3	4,505.9	4,462.2	4,400.5	4,333.6	4,333.6	4,264.1
Residential net additions (losses)	(36.3)	(54.5)	(54.8)	(41.8)	(187.4)	(43.2)	(42.5)	(59.3)	(64.9)	(209.9)	(66.8)
Business Services net additions (losses)	(0.7)	0.0	(1.2)	(1.8)	(3.7)	(1.3)	(1.1)	(2.4)	(2.0)	(6.7)	(2.8)
Total customer net additions (losses)	(37.0)	(54.5)	(56.1)	(43.6)	(191.1)	(44.4)	(43.6)	(61.7)	(66.9)	(216.6)	(69.5)
Residential PSUs
Broadband	4,139.7	4,088.7	4,039.5	3,999.9	3,999.9	3,963.3	3,928.3	3,872.2	3,811.4	3,811.4	3,749.6
Video	2,094.7	2,021.9	1,944.8	1,880.1	1,880.1	1,792.4	1,736.3	1,674.9	1,628.4	1,628.4	1,570.7
Telephony	1,452.1	1,391.1	1,326.0	1,269.2	1,269.2	1,200.0	1,147.8	1,093.1	1,041.6	1,041.6	994.9
Broadband net additions (losses)	(29.4)	(51.0)	(49.2)	(37.7)	(167.3)	(36.6)	(35.0)	(56.2)	(60.7)	(188.4)	(61.9)
Video net additions (losses)	(77.7)	(72.8)	(77.0)	(64.3)	(291.8)	(87.7)	(56.1)	(61.4)	(46.5)	(251.7)	(57.7)
Telephony net additions (losses)	(63.1)	(61.1)	(65.1)	(56.7)	(246.0)	(69.2)	(52.2)	(54.7)	(51.5)	(227.7)	(46.7)
Residential ARPU(1) ($)	135.67	135.95	135.77	133.95	135.44	133.93	133.68	133.28	134.49	134.18	132.32
Convergence ARPU(2) ($)	75.57	76.36	77.43	77.47	76.77	78.38	77.95	78.26	80.87	79.09	79.32
SMB PSUs
Broadband	348.5	348.8	347.7	346.1	346.1	345.7	345.6	343.6	342.0	342.0	339.7
Video	87.3	85.4	83.3	81.0	81.0	78.7	76.6	74.6	72.6	72.6	70.4
Telephony	200.7	199.2	196.8	194.5	194.5	191.9	188.9	185.6	182.5	182.5	179.2
Broadband net additions (losses)	(0.4)	0.3	(1.1)	(1.6)	(2.8)	(0.4)	(0.1)	(2.1)	(1.5)	(4.1)	(2.3)
Video net additions (losses)	(2.3)	(1.9)	(2.1)	(2.2)	(8.5)	(2.4)	(2.0)	(2.0)	(2.0)	(8.5)	(2.1)
Telephony net additions (losses)	(2.6)	(1.4)	(2.4)	(2.3)	(8.8)	(2.6)	(3.0)	(3.3)	(3.1)	(12.0)	(3.3)
Total Mobile Lines(15)
Mobile ending lines	351.6	384.5	420.1	459.6	459.6	508.6	546.4	584.4	622.5	622.5	674.1
Mobile line net additions	29.3	33.0	35.5	39.5	137.4	49.0	37.8	38.0	38.1	162.9	51.6

Fiber (FTTH) Customer Metrics (in thousands)
	Q1-24	Q2-24	Q3-24	Q4-24	FY-24	Q1-25	Q2-25	Q3-25	Q4-25	FY-25	Q1-26
FTTH Total Passings(16)	2,780.0	2,842.0	2,893.7	2,961.8	2,961.8	2,995.0	3,023.4	3,053.0	3,096.0	3,096.0	3,121.6
FTTH Total Passing additions	44.8	62.0	51.7	68.1	226.6	33.2	28.5	29.6	43.0	134.2	25.6
FTTH Residential customer relationships	385.2	422.7	468.5	523.4	523.4	590.2	644.6	683.6	694.8	694.8	706.7
FTTH SMB customer relationships	9.4	11.4	13.1	14.7	14.7	16.5	18.5	19.8	21.2	21.2	22.4
FTTH Total Customer Relationships(17)	394.6	434.1	481.6	538.2	538.2	606.7	663.0	703.5	715.9	715.9	729.1
FTTH Residential net additions	51.4	37.5	45.7	55.0	189.6	66.7	54.4	39.0	11.1	171.3	12.0
FTTH SMB net additions	1.9	2.0	1.7	1.7	7.2	1.8	1.9	1.4	1.3	6.4	1.2
FTTH Total Customer Net Additions	53.2	39.5	47.4	56.6	196.8	68.5	56.3	40.4	12.5	177.8	13.2

Optimum Communications, Inc. Consolidated Operating Results ($ and shares in thousands, except per share data) (unaudited)
	Three Months Ended March 31,
		2026				2025
Revenue:
Broadband	$	850,039			$	899,561
Video		602,223				665,568
Telephony		58,406				66,412
Mobile		49,549				36,699
Residential revenue		1,560,217				1,668,240
Business services and wholesale		364,300				363,545
News and Advertising		119,674				102,410
Other		21,177				18,087
Total revenue		2,065,368				2,152,282
Operating expenses:
Programming and other direct costs		631,129				670,531
Other operating expenses		660,203				698,186
Restructuring, impairments and other operating items		2,727,629				21,622
Depreciation and amortization		406,496				418,485
Operating income		(2,360,089	)			343,458
Other income (expense):
Interest expense, net		(457,819	)			(428,016	)
Gain on investments and sale of affiliate interests		—				5
Gain (loss) on interest rate swap contracts, net		2,398				(1,719	)
Loss on extinguishment of debt and write-off of deferred financing costs		(106,045	)			—
Other expense, net		(529	)			(963	)
Loss before income taxes		(2,922,084	)			(87,235	)
Income tax benefit		45,108				15,964
Net loss		(2,876,976	)			(71,271	)
Net income attributable to noncontrolling interests		(7,095	)			(4,405	)
Net loss attributable to Optimum Communications stockholders	$	(2,884,071	)		$	(75,676	)
Net loss per share:
Basic and diluted net loss per share attributable to Optimum Communications, Inc. stockholder	$	(6.10	)		$	(0.16	)
Basic and diluted weighted average common shares (in thousands)		472,420				464,862

Optimum Communications, Inc. Consolidated Statements of Cash Flows ($ in thousands) (unaudited)
	Three Months Ended March 31,
		2026				2025
Cash flows from operating activities:
Net loss	$	(2,876,976	)		$	(71,271	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		406,496				418,485
Indefinite-lived cable franchise rights impairment		2,700,000				—
Gain on investments, sale of assets or sale of affiliate interests		—				(5	)
Loss on extinguishment of debt and write-off of deferred financing costs		106,045				—
Amortization of deferred financing costs and discounts (premiums) on indebtedness		9,911				3,992
Share-based compensation expense		14,977				15,449
Deferred income taxes		(111,441	)			(127,410	)
Decrease in right-of-use assets		10,931				11,150
Allowance for credit losses		20,628				16,196
Other		479				399
Change in operating assets and liabilities, net of effects of acquisitions and dispositions:
Accounts receivable, trade		13,941				17,187
Prepaid expenses and other assets		(79,588	)			(55,377	)
Amounts due from and due to affiliates		(8,277	)			13,905
Accounts payable and accrued liabilities		(29,207	)			42,958
Interest payable		(26,611	)			(120,856	)
Deferred revenue		18,043				18,816
Interest rate swap contracts		932				3,865
Net cash provided by operating activities .		170,283				187,483
Cash flows from investing activities:
Capital expenditures		(307,704	)			(356,124	)
Payments for acquisitions, net of cash acquired		—				(7,616	)
Other, net		3,031				191
Net cash used in investing activities		(304,673	)			(363,549	)
Cash flows from financing activities:
Proceeds from long-term debt		2,756,954				450,000
Repayment of debt		(2,524,081	)			(220,014	)
Principal payments on finance lease obligations		(6,289	)			(17,262	)
Additions to deferred financing costs		(112,630	)			—
Other, net		(7,929	)			(13,997	)
Net cash provided by financing activities		106,025				198,727
Net increase (decrease) in cash and cash equivalents		(28,365	)			22,661
Effect of exchange rate changes on cash and cash equivalents		17				(54	)
Net increase (decrease) in cash, cash equivalents and restricted cash		(28,348	)			22,607
Cash, cash equivalents and restricted cash at beginning of year		1,141,443				256,824
Cash, cash equivalents and restricted cash at end of year	$	1,113,095			$	279,431

Reconciliation of Non-GAAP Financial Measures

We define Adjusted EBITDA, which is a non-GAAP financial measure, as net income (loss) excluding income taxes, non-operating income or expenses, gain (loss) on extinguishment of debt and write-off of deferred financing costs, gain (loss) on interest rate swap contracts, gain (loss) on derivative contracts, gain (loss) on investments and sale of affiliate interests, interest expense, net, depreciation and amortization, share-based compensation, restructuring, impairments and other operating items (such as significant legal settlements and contractual payments for terminated employees). We define Adjusted EBITDA margin as Adjusted EBITDA divided by total revenue.

Adjusted EBITDA eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our business and from intangible assets recognized from acquisitions, as well as certain non-cash and other operating items that affect the period-to-period comparability of our operating performance. In addition, Adjusted EBITDA is unaffected by our capital and tax structures and by our investment activities.

We believe Adjusted EBITDA is an appropriate measure for evaluating our operating performance. Adjusted EBITDA and similar measures with similar titles are common performance measures used by investors, analysts and peers to compare performance in our industry. Internally, we use revenue and Adjusted EBITDA measures as important indicators of our business performance and evaluate management’s effectiveness with specific reference to these indicators. We believe Adjusted EBITDA provides management and investors a useful measure for period-to-period comparisons of our core business and operating results by excluding items that are not comparable across reporting periods or that do not otherwise relate to our ongoing operating results. Adjusted EBITDA should be viewed as a supplement to and not a substitute for operating income (loss), net income (loss), and other measures of performance presented in accordance with U.S. generally accepted accounting principles (“GAAP”). Since Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, this measure may not be comparable to similar measures with similar titles used by other companies.

We also use Free Cash Flow (defined as net cash flows from operating activities less cash capital expenditures) as a liquidity measure. We believe this measure is useful to investors in evaluating our ability to service our debt and make continuing investments with internally generated funds, although it may not be directly comparable to similar measures reported by other companies.

Reconciliation of Net Loss to Adjusted EBITDA ($ in thousands) (unaudited)
	Three Months Ended March 31,
		2026				2025
Net loss	$	(2,876,976	)		$	(71,271	)
Income tax benefit		(45,108	)			(15,964	)
Other expense, net		529				963
Loss (gain) on interest rate swap contracts, net		(2,398	)			1,719
Gain on investments and sale of affiliate interests		—				(5	)
Loss on extinguishment of debt and write-off of deferred financing costs		106,045				—
Interest expense, net		457,819				428,016
Depreciation and amortization		406,496				418,485
Restructuring, impairments and other operating items		2,727,629				21,622
Share-based compensation		14,977				15,449
Adjusted EBITDA	$	789,013			$	799,014
Adjusted EBITDA margin		38.2	%			37.1	%

Reconciliation of net cash flow from operating activities to Free Cash Flow (Deficit) (in thousands) (unaudited):
	Three Months Ended March 31,
		2026				2025
Net cash flows from operating activities	$	170,283			$	187,483
Less: Capital expenditures (cash)		307,704				356,124
Free Cash Flow (Deficit)	$	(137,421	)		$	(168,641	)

Consolidated Net Debt as of March 31, 2026 ($ in millions)
CSC Holdings, LLC Restricted Group	Principal Amount		Coupon / Margin		Maturity
Drawn RCF	$2,125		SOFR+2.350%		2027
Term Loan B-5	2,820		ABR(18)		2027
Guaranteed Notes	1,310		5.500%		2027
Guaranteed Notes	1,000		5.375%		2028
Guaranteed Notes	1,000		11.250%		2028
Guaranteed Notes	2,050		11.750%		2029
Guaranteed Notes	1,750		6.500%		2029
Guaranteed Notes	1,100		4.125%		2030
Guaranteed Notes	1,000		3.375%		2031
Guaranteed Notes	1,500		4.500%		2031
Senior Notes	1,046		7.500%		2028
Legacy unexchanged Cequel Notes	4		7.500%		2028
Senior Notes	2,250		5.750%		2030
Senior Notes	2,325		4.625%		2030
Senior Notes	500		5.000%		2031
CSC Holdings, LLC Restricted Group Gross Debt	21,780
CSC Holdings, LLC Restricted Group Cash	(580)
CSC Holdings, LLC Restricted Group Net Debt	$21,200
CSC Holdings, LLC Restricted Group Undrawn RCF	$149.7

UnSub Group Credit Agreement	Principal Amount		Coupon / Margin		Maturity
Term Loan B-8	$3,100		9.000%		2028
UnSub Group cash	(349)
UnSub Net Debt	$2,751

Lightpath Consolidated	Principal Amount		Coupon / Margin		Maturity
Secured Fiber Network Revenue Note	$1,527		5.597%		2031
Secured Fiber Network Revenue Note	130		5.890%		2031
Lightpath Consolidated Gross Debt	1,657
Lightpath Consolidated Cash	(97)
Lightpath Consolidated Net Debt	$1,560
Lightpath Consolidated available and undrawn under Variable Funding Note	$93.9

Net Leverage Schedule as of March 31, 2026 ($ in millions)
	CSC Holdings Restricted Group(19)		Lightpath Consolidated(21)		UnSub Group		Optimum Communications Consolidated
Gross Debt Consolidated(20)	$21,780		$1,657		$3,100		$26,537
Cash	(580)		(97)		(349)		(1,049)
Net Debt Consolidated(8)	$21,200		$1,560		$2,751		$25,488
LTM EBITDA	$1,002		$296		$2,014		$3,326
L2QA EBITDA	$1,042		$325		$2,009		$3,382
Net Leverage (LTM)	21.2x		5.3x		1.4x		7.7x
Net Leverage (L2QA)(9)	20.3x		4.8x		1.4x		7.5x
WACD(%)	6.6%		5.6%		9.0%		6.8%

Reconciliation to Financial Reported Debt
	Optimum Communications Consolidated
Total Debenture and Loans from Financial Institutions (Carrying Amount)	$26,339
Unamortized financing costs and discounts, net of unamortized premiums	198
Gross Debt Consolidated(20)	26,537
Finance leases	104
Total Debt	26,641
Cash	(1,049)
Net Debt Including Finance Leases	$25,592

(1)		Residential ARPU is calculated by dividing the average monthly revenue for the respective period derived from the sale of broadband, video, telephony and mobile services to residential customers by the average number of total residential customers for the same period and excludes mobile-only customer relationships.
(2)		Convergence ARPU is calculated by dividing the average monthly revenue for the respective period derived from the sale of broadband and mobile services to residential customers by the average number of total residential broadband customers for the same period and excludes mobile-only customer relationships.
(3)		See “Reconciliation of Non-GAAP Financial Measures” beginning on page 7 of this earnings release.
(4)		Capital intensity refers to total cash capital expenditures as a percentage of total revenue.
(5)		Broadband subscriber net adds video subscriber net adds in Q1-26 include subscriber adjustments taken in the quarter related to prior periods. Excluding these adjustments broadband subscriber net losses would have been 56k and video subscriber net losses would have been 50k.
(6)		Mobile penetration of broadband base is expressed as the percentage of customers subscribing to both broadband and mobile services divided by the total broadband customer base. Excludes mobile only customers.
(7)		Video ARPU is calculated by dividing the average monthly residential video revenue for the respective period by the average number of total residential video customers for the same period.
(8)		Net debt, defined as the principal amount of debt less cash, and excluding finance leases and other notes.
(9)		L2QA leverage is calculated as quarter end net debt consolidated divided by the last two quarters of Adjusted EBITDA annualized.
(10)		Customer metrics as of September 30, 2024 reflect adjustments to align to the Company’s bulk residential subscriber count policy, resulting in an increase of 4.7 thousand residential customer relationships, 3.8 thousand broadband customers and 5.2 thousand video customers. The impact of these adjustments to customer relationships, broadband and video customer net additions was not material for any period presented and as such prior period metrics were not restated.
(11)		Subscriber net additions (losses) and passings additions exclude 8.3 thousand passings, 2.1 thousand customer relationships, 1.9 thousand broadband subscribers and 0.5 thousand video subscribers that were transferred in connection with a small system sale in Q4-24.
(12)		Total passings represents the estimated number of single residence homes, apartments and condominium units passed by the HFC and FTTH network in areas serviceable without further extending the transmission lines. In addition, it includes commercial establishments that have connected to our hybrid-fiber-coaxial (HFC) and fiber-to-the-home (FTTH) network. Broadband services were not available to approximately 26 thousand total passings and telephony services were not available to approximately 460 thousand total passings as of March 31, 2026.
(13)		Total Unique Customer Relationships represent the number of households/businesses that receive at least one of our fixed-line services. Customers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one customer, regardless of size, revenue generated, or number of boxes, units, or outlets on our HFC and FTTH network. Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group. Most of these accounts are also not entirely free, as they typically generate revenue through pay-per-view or other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion. In counting bulk residential customers, such as an apartment building, we count each subscribing unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual room units at that hotel.
(14)		Total Customer Relationship metrics do not include mobile-only customers.
(15)		Mobile lines represent the number of residential and business customers’ wireless connections, which include mobile phone handsets and other mobile wireless connected devices. An individual customer relationship may have multiple mobile lines. The FY 2025 and Q1 2026 ending lines include approximately 17.6 thousand and 20.9 thousand lines related to business customers, respectively. The service revenue related to these business customers is reflected in “Business services and wholesale” in the table above.
(16)		Represents the estimated number of single residence homes, apartments and condominium units passed by the FTTH network in areas serviceable without further extending the transmission lines. In addition, it includes commercial establishments that have connected to our FTTH network.
(17)		Represents number of households/businesses that receive at least one of our fixed-line services on our FTTH network. FTTH customers represent each customer account (set up and segregated by customer name and address), weighted equally and counted as one customer, regardless of size, revenue generated, or number of boxes, units, or outlets on our FTTH network. Free accounts are included in the customer counts along with all active accounts, but they are limited to a prescribed group. Most of these accounts are also not entirely free, as they typically generate revenue through pay-per view or other pay services and certain equipment fees. Free status is not granted to regular customers as a promotion. In counting bulk residential customers, such as an apartment building, we count each subscribing unit within the building as one customer, but do not count the master account for the entire building as a customer. We count a bulk commercial customer, such as a hotel, as one customer, and do not count individual room units at that hotel.
(18)		Beginning on March 31, 2025, we are required to pay interest on the Incremental Term Loan B-5 at a rate equal to the alternate base rate (“ABR”), plus the applicable margin, where the ABR is the greater of (x) prime rate or (y) the federal funds effective rate plus 50 basis points, and the applicable margin for any ABR loan is 1.50% per annum. Prior to March 31, 2025, we paid interest at a rate equal to Synthetic USD London Interbank Offered Rate plus 2.50% per annum.
(19)		CSC Holdings, LLC Restricted Group excludes the unrestricted subsidiaries, primarily Lightpath Fiber Issuer LLC, Cablevision Funding LLC, Cablevision Litchfield, LLC and CSC Optimum Holdings, LLC, and certain subsidiaries of CSC Holdings designated as “unrestricted subsidiaries” for the purposes of the CSC Holdings silo on November 25, 2025.
(20)		Principal amount of debt excluding finance leases and other notes.
(21)		Amounts represent Lightpath Consolidated, which primarily consists of Lightpath Fiber Issuer LLC, as well as certain network assets between New York City and Ashburn, Virginia.
Certain numerical information is presented on a rounded basis. Minor differences in totals and percentage calculations may exist due to rounding.

About Optimum Communications

Optimum Communications, Inc. (NYSE: OPTU) is one of the largest broadband communications and video services providers in the United States, delivering broadband, video, mobile, proprietary content and advertising services to approximately 4.3 million residential and business customers across 21 states through its Optimum brand. We operate Optimum Media, an advanced advertising and data business, which provides audience-based, multiscreen advertising solutions to local, regional and national businesses and advertising clients. We also operate News 12, which is focused on delivering best-in-class hyperlocal news content.

FORWARD-LOOKING STATEMENTS

Certain statements in this earnings release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this earnings release, including, without limitation, those regarding our intentions, beliefs or current expectations concerning, among other things, our future financial condition, liquidity, capital structure and results of operations; our strategy, objectives, prospects and trends, including driving margin expansion; our 2026 priorities, including, among other things: improving broadband trends (including simplifying products and pricing and improving convergence and value-added product sell-in), maintaining financial discipline (including base management, product margin expansion, cost optimization and our AI and automation capabilities) and investing for long-term value creation (including fiber expansion, network upgrades and investment in technology and tools); our capital structure, including our ability to address upcoming maturities, refinancing activities, deleveraging initiatives and transformation plans; our subscriber trends (including broadband, mobile, video and fiber, churn, customer growth, retention, penetration and lifetime value) and competitive dynamics; our go-to-market strategies and pricing and rate management strategies and the anticipated benefits thereof; network enhancements; and future developments in the markets in which we participate or are seeking to participate. These forward-looking statements can be identified by the use of forward-looking terminology, including without limitation the terms “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “intend”, “may”, “opportunity”, “plan”, “project”, “should”, “target”, “outlook”, or “will” or, in each case, their negative, or other variations or comparable terminology. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. To the extent that statements in this earnings release are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements including risks referred to in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q. You are cautioned to not place undue reliance on Optimum Communications’ forward-looking statements. Any forward-looking statement speaks only as of the date on which it was made. Optimum Communications specifically disclaims any obligation to publicly update or revise any forward-looking statement, as of any future date.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260506260776/en/

Investor Relations

John Hsu: +1 917 405 2097 / [email protected]

Sarah Freedman: +1 631 660 8714 / [email protected]

Media Relations

Lisa Anselmo: +1 516 279 9461 / [email protected]

Janet Meahan: +1 516 519 2353 / [email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Technology Mobile/Wireless Entertainment Carriers and Services Advertising Telecommunications Communications TV and Radio Internet

MEDIA:

Posted on May 7, 2026 7:20 am

Axsome Therapeutics Recognizes Mental Health Month

NEW YORK, May 07, 2026 (GLOBE NEWSWIRE) — Axsome Therapeutics, Inc. (NASDAQ: AXSM), a biopharmaceutical company leading a new era in the treatment of central nervous system (CNS) disorders, today announced its support for Mental Health Month alongside the broader mental health advocacy community. In recognition of this year’s More Good Days Together theme, Axsome is sharing resources to support individuals affected by mental health conditions, their families, and the communities around them.

“At Mental Health America, we are proud to have established Mental Health Month in 1949, with the goal of educating the public about mental illness, mental health, and recovery,” said Pierluigi Mancini, PhD, interim president and CEO of Mental Health America (MHA). “Our 2026 campaign, More Good Days, Together, provides tools and resources that meet people where they are, support them as whole people, and acknowledge that ‘good’ is defined by their unique experience and goals. The path may look different for everyone, but we all deserve more good days, together.”

Mental health conditions are highly prevalent in the U.S., with nearly 1 in 4 adults living with a mental illness.¹ Major depressive disorder (MDD), one of the most common mental health conditions, is a leading cause of disability worldwide and impacts over 21 million adults in the U.S. alone.^1-3 Nearly 90% of people living with depression report difficulty with work, home, or social activities due to their symptoms, underscoring the impact depression can have on day-to-day life.⁴

Axsome’s mission is to develop and deliver transformative medicines to improve the brain health of millions of individuals affected by central nervous system conditions, including those living with difficult-to-treat mental illness. To help raise awareness and promote action during Mental Health Month, Axsome is highlighting non-profit organizations and resources that provide education, tools, and community support for individuals and families affected by mental health conditions, including:

• 2026 Mental Health Month Action Guide (https://mhanational.org/2026-mental-health-month-action-guide/) MHA’s work is driven by its commitment to promote mental health as a critical part of overall wellness, including prevention services for all; early identification and intervention for those at risk; and integrated care, services, and support for those who need them, with recovery as the goal. Its 2026 Mental Health Month Action Guide provides access to online activities, articles, printable tools, and practical resources
• Anxiety and Depression Association of America (ADAA)’s “Find Your Therapist” platform (https://findyourtherapist.adaa.org/) helps connect people with licensed mental health professionals who specialize in treating anxiety, depression, OCD, PTSD, and other related disorders. This aligns with ADAA’s 2026 annual conference theme around “Innovations in Technology Driving Clinical Care and Research in Mood and Anxiety Disorders,” and the organizations commitment to improving live through collaboration, research, education, and innovation.   
• The National Alliance on Mental Illness (NAMI) New York Chapter (https://naminycmetro.org/), guided by lived experience and evidence-based practices, helps families and individuals affected by mental illness build better lives through education, support, and advocacy. Later this month NAMI-NYC is hosting its annual Mental Health Street Fest, which is the nation’s largest mental health event, being held since 2007: https://www.namiwalks.org/nyc.

If you or someone you know is in crisis, the 988 Suicide & Crisis Lifeline (https://988lifeline.org/) is a free confidential support service available 24 hours a day, 7 days a week across the United States. When people call, text, or chat 988, they will be connected to trained counselors that are part of the existing Lifeline network. These trained counselors will listen, understand how their problems are affecting them, provide support, and connect them to resources if necessary.

About Axsome Therapeutics

Axsome Therapeutics is a biopharmaceutical company leading a new era in the treatment of central nervous system (CNS) conditions. We deliver scientific breakthroughs by identifying critical gaps in care and develop differentiated products with a focus on novel mechanisms of action that enable meaningful advancements in patient outcomes. Our industry-leading neuroscience portfolio includes FDA-approved treatments for major depressive disorder, agitation associated with dementia due to Alzheimer’s disease, excessive daytime sleepiness associated with narcolepsy and obstructive sleep apnea, and migraine, as well as multiple novel product candidates addressing a broad range of serious neurological and psychiatric conditions that impact over 150 million people in the United States. Together, we are on a mission to solve some of the brain’s biggest problems so patients and their loved ones can flourish. For more information, please visit us at www.axsome.com and follow us on LinkedIn and X.

Forward Looking Statements

Certain matters discussed in this press release are “forward-looking statements”. The Company may, in some cases, use terms such as “predicts,” “believes,” “potential,” “continue,” “estimates,” “anticipates,” “expects,” “plans,” “intends,” “may,” “could,” “might,” “will,” “should” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. In particular, the Company’s statements regarding trends and potential future results are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including, but not limited to, the commercial success of the Company’s SUNOSI^®, AUVELITY^®, and SYMBRAVO^® products and the success of the Company’s efforts to obtain any additional indication(s) with respect to solriamfetol and/or AXS-05; the Company’s ability to maintain and expand payer coverage; the success, timing and cost of the Company’s ongoing clinical trials and anticipated clinical trials for the Company’s current product candidates, including statements regarding the timing of initiation, pace of enrollment and completion of the trials (including the Company’s ability to fully fund the Company’s disclosed clinical trials, which assumes no material changes to the Company’s currently projected revenues or expenses), futility analyses and receipt of interim results, which are not necessarily indicative of the final results of the Company’s ongoing clinical trials, and/or data readouts, and the number or type of studies or nature of results necessary to support the filing of a new drug application (“NDA”) for any of the Company’s current product candidates; the Company’s ability to fund additional clinical trials to continue the advancement of the Company’s product candidates; the timing of and the Company’s ability to obtain and maintain U.S. Food and Drug Administration (“FDA”) or other regulatory authority approval of, or other action with respect to, the Company’s product candidates, including statements regarding the timing of any NDA submission; the Company’s ability to successfully defend its intellectual property or obtain the necessary licenses at a cost acceptable to the Company, if at all; the Company’s ability to successfully resolve any intellectual property litigation, and even if such disputes are settled, whether the applicable federal agencies will approve of such settlements; the successful implementation of the Company’s research and development programs and collaborations; the success of the Company’s license agreements; the acceptance by the market of the Company’s products and product candidates, if approved; the Company’s anticipated capital requirements, including the amount of capital required for the commercialization of SUNOSI, AUVELITY, and SYMBRAVO and for the Company’s commercial launch of its other product candidates, if approved, and the potential impact on the Company’s anticipated cash runway; the Company’s ability to convert sales to recognized revenue and maintain a favorable gross to net sales; unforeseen circumstances or other disruptions to normal business operations arising from or related to domestic political climate, geo-political conflicts or a global pandemic and other factors, including general economic conditions and regulatory developments, not within the Company’s control. The factors discussed herein could cause actual results and developments to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Investors:

Ashley Dong
Senior Director, Investor Relations
(929) 687-1614
[email protected]

Media:

Darren Opland
Senior Director, Corporate Communications
(929) 837-1065
[email protected]

References:

1. Substance Abuse and Mental Health Services Administration. Key Substance Use and Mental Health Indicators in the United States: Results from the 2023 National Survey on Drug Use and Health. July 2024. https://www.samhsa.gov/data/report/2023-nsduh-annual-national-report
2. World Health Organization. Depression and Other Common Mental Disorders: Global Health Estimates. 2017.https://www.who.int/publications/i/item/depression-global-health-estimates
3. National Institute of Mental Health. Major Depression. Accessed February 2026. https://www.nimh.nih.gov/health/statistics/major-depression
4. Brody DJ, Hughes JP. Depression prevalence in adolescents and adults: United States, August 2021–August 2023. 2025 Apr; (527)1–11. DOI: https://dx.doi.org/10.15620/cdc/174579.

Posted on May 7, 2026 7:20 am

BKV Corporation Reports First Quarter 2026 Financial and Operational Results

BKV Corporation Reports First Quarter 2026 Financial and Operational Results

DENVER–(BUSINESS WIRE)–
BKV Corporation (“BKV” or the “Company”) (NYSE: BKV), today reported financial and operational results for the first quarter of 2026.

First Quarter 2026 Highlights

• Net income attributable to BKV of $44.1 million or $0.42 per diluted share

• Adjusted Net Income attributable to BKV of $22.4 million or $0.22 per diluted share

• Adjusted EBITDAX attributable to BKV of $112.0 million

• Net cash provided by operating activities of $72.0 million

• Net cash provided by operating activities before working capital of $109.3 million

• Accrued capital expenditures of $118.6 million

• Adjusted Free Cash Flow before Power Growth attributable to BKV of $20.0 million

• Average net production of 925.0 MMcfe/d

• Total generation from the Power JV’s Temple plants of 1,981 GWh

• Barnett Zero quarterly sequestration of approximately 35,800 metric tons of CO₂ equivalent

• Net Leverage Ratio of 2.02x

• Closed the previously announced acquisition of an incremental 25% ownership of the Power JV on January 30, 2026

• Completed the underwritten public offering of approximately 7.0 million shares of common stock for net proceeds to BKV of $186.2 million

“We continued to deliver on our promises in the first quarter of 2026 through strong execution across the business and the achievement of several important milestones,” said Chris Kalnin, Chief Executive Officer of BKV. “During the quarter, we closed the BKV-BPP Power transaction, increasing our ownership in the joint venture to 75%, completed an equity offering, achieved first injection at our Cotton Cove CCUS project, and materially advanced our process toward a PPA at the Temple Energy Complex, all while maintaining operational excellence across our existing business lines.”

“We also continued to strengthen our positioning for long-term power growth with the announcement of 1.2 GW of turbine reservations and additional site control with 6,200 acres in North Central Texas and nearly 800 additional acres around our Temple facility,” continued Kalnin. “These actions, combined with the continued advancement of our closed loop strategy, position BKV to capitalize on the opportunities ahead and drive long-term value for our shareholders.”

Financial Results

	Three Months Ended March 31,
($ Millions, except EPS)(1)		2026			2025
Net income (loss) attributable to BKV	$	44.1		$	(82.0	)
Adjusted Net Income attributable to BKV, non-GAAP	$	22.4		$	37.4
Adjusted EPS attributable to BKV, non-GAAP(2)	$	0.22		$	0.44
Adjusted EBITDAX attributable to BKV, non-GAAP	$	112.0		$	105.0
Net cash provided by operating activities	$	72.0		$	16.5
Net cash provided by operating activities before working capital	$	109.3		$	50.0
Adjusted Free Cash Flow before Power Growth attributable to BKV, non-GAAP	$	20.0		$	(28.5	)
Capital expenditures (accrued)
Development (3)	$	81.9		$	47.9
Power (4)	$	16.7		$	0.1
CCUS and other	$	20.0		$	10.1
Total capital expenditures (accrued)	$	118.6		$	58.1

(1) Adjusted Net Income attributable to BKV, Adjusted EPS attributable to BKV, Adjusted EBITDAX attributable to BKV, and Adjusted Free Cash Flow before Power Growth attributable to BKV are each non-GAAP financial measures. For a definition of each of these non-GAAP financial measures and reconciliations of such non-GAAP financial measures to their most directly comparable GAAP metrics, please see “Supplemental Non-GAAP Financial Measures” below.
(2) Reflects Adjusted EPS attributable to BKV on a diluted basis.
(3) Excludes asset retirement obligation expenditures of $0.6 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively.
(4) Power maintenance was $0.2 million and $0.1 million for the three months ended March 31, 2026 and 2025, respectively.

“Our first quarter results reflect a continued focus on disciplined capital allocation as we invest in growth across our platform,” said David Tameron, Chief Financial Officer of BKV. “We generated strong free cash flow from our base business and deployed capital strategically, while maintaining a solid balance sheet and substantial liquidity.”

“In addition, we successfully executed an equity offering to support the continued expansion of our power business, reinforcing our ability to fund strategic initiatives while preserving financial flexibility,” continued Tameron. “This balanced approach positions us to drive sustained growth while maintaining a strong financial foundation.”

Business Segment Results

	Three Months Ended March 31, 2026
($ Thousands)	Upstream/ Midstream				Power				Corporate & Other				Total
Income (loss) from operations	$	64,857			$	33,486			$	(12,317	)		$	86,026
Add back (subtract):
Depreciation, depletion, amortization, and accretion		41,915				11,804				446				54,165
Net unrealized derivative (gains) losses		16,136				(29,992	)			—				(13,856	)
Forward month gas settlement (1)		(23,445	)			—				—				(23,445	)
Equity-based compensation expense		2,032				625				1,250				3,907
Other income		1,513				800				575				2,888
Other nonrecurring transactions		5,383				3,707				—				9,090
Adjusted EBITDAX, non-GAAP		108,391				20,430				(10,046	)			118,775
(Deduct) add: Adjusted EBITDAX attributable to Noncontrolling Interests (2)		—				(5,877	)			(921	)			(6,798	)
Adjusted EBITDAX attributable to BKV, non-GAAP	$	108,391			$	14,553			$	(10,967	)		$	111,977

	Three Months Ended March 31, 2025
($ Thousands)	Upstream/ Midstream				Power				Corporate & Other				Total
Loss from operations	$	(79,685	)		$	(7,389	)		$	(13,023	)		$	(100,097	)
Add back (subtract):
Depreciation, depletion, amortization, and accretion		39,584				9,648				479				49,711
Net unrealized derivative (gains) losses		133,985				13,050				—				147,035
Forward month gas settlement (1)		3,997				—				—				3,997
Equity-based compensation expense		723				372				972				2,067
Impairment of asset held for sale		2,446				—				—				2,446
Other income (expense)		401				2,698				(65	)			3,034
Other nonrecurring transactions		1,100				—				455				1,555
Adjusted EBITDAX, non-GAAP		102,551				18,379				(11,182	)			109,748
(Deduct) add: Adjusted EBITDAX attributable to Noncontrolling Interests (2)		—				(4,746	)			—				(4,746	)
Adjusted EBITDAX attributable to BKV, non-GAAP	$	102,551			$	13,633			$	(11,182	)		$	105,002

(1) Natural gas derivative contracts settle and are realized in the month prior to the production covered by the contract. This adjustment removes the timing difference between the settlement date and the underlying production month that is hedged.
(2) Non-GAAP financial measure, see supplemental non-GAAP financial measures for reconciliations to the most comparable financial measures in accordance with GAAP.

Segment Operational Results – First Quarter 2026

Power Business Segment

BKV continues to make meaningful progress toward securing a long-term power purchase agreement (PPA) to enhance revenue visibility and optimize generation at the Power JV’s Temple plants. Through the previously disclosed advisor-led process, the Company is actively evaluating PPA proposals and remains engaged in discussions with multiple prospective counterparties.

The Company continues to evaluate multiple avenues for expansion, including modular power development and a private use network at the Temple complex, as well as a potential Temple III expansion and new project opportunities in North Central Texas. BKV has taken multiple measured steps to advance readiness to support speed to power and power growth, including entering into equipment supply contracts related to modular power, securing turbine reservations for up to 1.2 GW of capacity, gaining site control on nearly 800 additional acres in Temple, and acquiring approximately 6,200 acres of site control in North Central Texas. The pace and scale of future development and capital spending will be driven by progress in commercial discussions toward securing long-term PPAs. With power demand in the U.S. and ERCOT markets continuing to accelerate—driven by AI-enabled data center growth and increasing electrification—BKV is well positioned to capitalize on these structural trends.

Power segment Adjusted EBITDAX (“Power Adjusted EBITDAX”) was $20.4 million in the three months ended March 31, 2026, and $18.4 million for the three months ended March 31, 2025. Power Adjusted EBITDAX attributable to BKV was $14.6 million for the three months ended March 31, 2026, compared to $13.6 million for the three months ended March 31, 2025. Power Adjusted EBITDAX attributable to Noncontrolling Interests was $5.9 million in the three months ended March 31, 2026 and $4.7 million for the three months ended March 31, 2025.

The first quarter of 2026, was marked by a significant January cold weather event, Winter Storm Fern, that drove elevated demand and required sustained dispatch. Total power generation for the quarter increased 24.7% year over year. During this period, the plants operated reliably with no forced outages, leveraging gas from storage to enhance flexibility, optimize realizations, and support grid stability during a challenging and critical stress event. Outside of the January cold snap, weather conditions were relatively mild for the winter season, with heating degree days approximately 30% lower than the first quarter of 2025. Planned maintenance activities were successfully completed on both plants in March, reinforcing strong operational readiness heading into the remainder of the year.

On January 30, 2026, BKV successfully completed its acquisition of one-half of the ownership interests in the BKV-BPP Power JV then-held by Banpu Power US Corporation’s (“BPPUS”), increasing BKV’s ownership stake in the joint venture from 50% to 75%. The transaction allows BKV to consolidate the financial results of the JV as provided in this quarter’s updated financials. An updated governance structure adopted in connection with the transaction strengthens BKV’s ability to align power operations with its long-term growth strategy while supporting continued reliability of the Temple facilities.

		Three Months Ended March 31,
			2026				2025
Temple I capacity factor			64.5	%			45.4	%
Temple II capacity factor			60.3	%			54.2	%
Total power generation (GWh)			1,981				1,588
Average power price ($/MWh)		$	51.04			$	52.87
Average natural gas cost		$	4.08			$	4.13
Average spark spread		$	22.21			$	23.67
Summary of Power Operations
($ Millions)
Total revenues, net		$	164.6			$	97.7
Depreciation and amortization		$	11.8			$	9.6
Operating expenses		$	119.3			$	95.4
Income (loss) from operations		$	33.5			$	(7.3	)
Interest expense, net		$	(13.5	)		$	(15.5	)
Other income		$	0.8			$	2.7
Net income (loss)		$	20.8			$	(20.1	)
Net income (loss) attributable to BKV		$	13.7			$	(15.4	)

Upstream, Midstream, and Commercial

BKV delivered strong operational performance in the first quarter, with production at the high-end of our guidance range while remaining within its capital framework. The upstream business continues to serve as a durable cash engine for the Company, generating consistent cash flow while improving capital efficiency across the asset base.

Results were driven by continued improvements in drilling and completions execution, including success from advanced completions designs that are outperforming prior type curves. The Company is also seeing benefits from positive offset well (“POW”) effects in the Barnett, where modern completion techniques are increasing production from both new and existing wells. Together, these initiatives are driving capital efficient incremental production and value without requiring capital expenditures beyond our budget. Additionally, BKV continues to enhance application of data and analytics, enabling management of its industry-leading low base decline and improving base production even further.

BKV also continues to expand its commercial capabilities. During the first quarter, the Company took over a substantive portion of its natural gas marketing and expects to be fully marketing its own production this year. Over time, this is expected to improve margins, increase commercial flexibility, and enhance BKV’s ability to deliver integrated solutions across gas, power, carbon sequestered gas, and LNG-related arrangements.

		Three Months Ended March 31,
			2026				2025
Production
Net production per day (MMcfe/d)			925.0				761.1
Natural gas (MMcf)			68,079				54,121
NGL (MBbls)			2,490				2,344
Oil (MBbls)			39				53
Total (MMcfe)			83,253				68,503
Natural Gas ($/Mcf)
Average NYMEX Henry Hub price		$	5.04			$	3.65
Differential		$	(1.51	)		$	(0.55	)
Average realized prices, excluding derivatives		$	3.53			$	3.10
Average realized prices, including derivatives		$	3.14			$	2.86
NGLs ($/Bbl)
Average realized prices, excluding derivatives		$	17.98			$	19.06
Average realized prices, including derivatives		$	17.98			$	16.89
Oil ($/Bbl)
Average realized prices		$	70.87			$	65.28
Average Operating Cash Costs per Mcfe
Lease operating and workover		$	0.54			$	0.51
Taxes other than income		$	0.19			$	0.15
Gathering and transportation costs		$	0.81			$	0.81
Total		$	1.54			$	1.47

Carbon Capture Utilization and Sequestration (“CCUS”)

BKV achieved initial injection at its Cotton Cove project in April. Cotton Cove represents the Company’s second operational CCUS project and is expected to achieve a sequestration rate of approximately 32,000 metric tons of CO₂ per year.

The Barnett Zero Project sequestered approximately 35,800 metric tons of CO₂ during the three months ended March 31, 2026. Since start-up in November 2023, the project has sequestered approximately 347,400 metric tons of CO₂ through March 31, 2026.

BKV’s additional CCUS development projects are progressing on pace with our previously provided timelines and consistent with previously provided scope targets. The Eagle Ford project is on track to commence injection before June 30, 2026, with an expected sequestration rate of approximately 90,000 metric tons of CO₂ per year; the project has received EPA approval of its monitoring, reporting, and verification (MRV) plan. The East Texas project remains on track with a forecasted injection target of approximately 70,000 metric tons per year of CO₂. As previously announced, BKV executed definitive agreements in the first quarter of 2026 with Comstock Resources to advance two CCUS projects at Comstock’s Bethel and Marquez natural gas processing facilities in the Western Haynesville. These developments and our broader pipeline of potential projects in our CCUS portfolio play a key role in supporting our targeted 1.5 million tons per annum injection run-rate by 2028.

BKV has received notice that its Class VI permit applications for the High West project have entered technical review with Louisiana regulators.

BKV is also continuing multiple Front-End Engineering Design (FEED) studies regarding CO2 capture from combined cycle natural gas turbines, like those at our Temple location, to further delineate capital and operating costs of such facilities. These studies are expected to be completed in 2026 and are intended to further inform potential power-related CCUS development opportunities across the Company’s portfolio.

Capital Expenditures

Accrued capital expenditures in the first quarter of 2026 were $118.6 million, which included $81.9 million for Upstream/Midstream development capital, $16.7 million for Power, and $20.0 million for CCUS and other expenditures. In addition, the Company spent an additional $33.1 million on deposits on fixed asset purchases in the quarter ending March 31, 2026, comprised of payments for turbines, modular generation equipment, and other long lead time items in Power included within our Strategic Power Growth capital expenditures and investments guidance. Accrued capital expenditures for the same period in 2025 were $58.1 million, which included $47.9 million for Upstream/Midstream development capital, $0.1 million for Power, and $10.1 million for CCUS and other expenditures.

Liquidity and Debt attributable to BKV

As of March 31, 2026, BKV had cash and cash equivalents of $288.5 million and restricted cash of $16.0 million related to the Power segment Temple Term Loan Facility. Total debt as of March 31, 2026 was $1.3 billion, which was made up of the 2030 Senior Notes of $500.0 million, RBL balance of $100.0 million, a promissory note of $46.0 million, and Power segment debt facilities of $635.4 million consisting of borrowings under the Temple I Loan Agreements of $176.0 million, borrowings under the Temple Term Loan Facility of $399.4 million, and Temple Revolving Facility balance of $60.0 million. s of March 31, 2026, total liquidity for BKV was $973.5 million, which consists of $288.5 million in cash and cash equivalents and $685.0 million available capacity under the Company’s RBL. RBL availability as of March 31, 2026, is based on the elected commitment amount of $800.0 million, less $15.0 million of letters of credit, less our outstanding balance of $100.0 million.

Second Quarter and Full Year 2026 Guidance

	Q2 2026		FY 2026
Accrued Capital Expenditures and Net Production ($ Millions)
Development (1)	$35 – $55		$200 – $280
Power – Strategic Capital & Investments + Maintenance (1), (2)	$100 – $120		$280 – $340
CCUS and other (2)	$20 – $40		$90 – $120
Total capital expenditures	$155 – $215		$570 – $740
Net production (MMcfe/d)	925 – 975		915 – 955
Per Unit Operating Costs ($/Mcfe)
Lease operating and workover	$0.49 – $0.53		$0.49 – $0.53
Gathering, compression, processing, and transport (GCPT)	$0.80 – $0.84		$0.80 – $0.84
Upstream general and administrative (excl. stock comp)	$0.20 – $0.25		$0.20 – $0.25
Other General and Administrative Costs
General and administrative (Power, CCUS, & Other)	$15 – $18		$53 – $63
General and administrative (stock comp)	$4 – $6		$15 – $25
Commodity Prices
Average natural gas differential (3), (4)	$(0.70) – $(0.90)		$(0.65) – $(0.85)
NGL % of WTI	~ 27%		~ 24%
Power ($ Millions)
Power Adjusted EBITDAX	$30 – $40		$135 – $175

(1) 2026 maintenance capital: Upstream ~$200 million; Power ~$5 million
(2) Expecting $85 million – $105 million in JV partner capital contributions
(3) Differential includes $0.15/Mcfe – $0.20/Mcfe of gathering, compression, processing, and transport
(4) Differential includes $0.15/Mcfe – $0.25/Mcfe of ethane rejection impacts in the first half of 2026

First Quarter 2026 Earnings Conference Call

The Company plans to host a conference call to discuss results today, May 7, 2026 at 10 AM ET. To access the conference call, participants may dial (877) 407-0779 (US) or (201) 389-0914 (international). Participants can also listen to a live webcast of the call by going to the Investors section on the BKV website at www.ir.bkv.com. A replay will be available shortly after the live conference call and can be accessed on the Company’s website or by dialing (844) 512-2921 (US) or (412) 317-6671 (international). The passcode for the replay is 13759950. The replay will be available for 60 days after the call.

About BKV Corporation

Headquartered in Denver, Colorado, BKV Corporation is a forward-thinking, growth-driven energy company focused on creating value for its stockholders. BKV’s core business is to produce natural gas from its owned and operated upstream assets. BKV’s overall business is organized into four business lines: natural gas production; natural gas gathering, processing and transportation; power generation; and carbon capture, utilization and sequestration. BKV (and its predecessor entity) was founded in 2015, and BKV and its employees are committed to building a different kind of energy company. BKV is one of the top 20 gas-weighted natural gas producers in the United States and the largest natural gas producer by gross operated volume in the Barnett Shale. BKV Corporation is the parent company for the BKV family of companies. For more information, visit the BKV website at www.bkv.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, which are not historical facts, include statements regarding BKV’s strategy, future operations, financial position, estimated revenue and losses, projected costs, prospects, plans, objectives of management and dividend policy, and often contain words such as “expect,” “project,” “estimate,” “believe,” “anticipate,” “intend,” “budget,” “plan,” “seek,” “aspire,” “envision,” “forecast,” “target,” “predict,” “may,” “should,” “would,” “could,” “will,” and similar expressions. Actual results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. Such forward-looking statements include, but are not limited to, statements about the anticipated benefits, opportunities and results with respect to the BKV-BPP Power Joint Venture Transaction, including any expected value creation from the BKV-BPP Power Joint Venture Transaction, anticipated efficiencies, power plant reliability, and strategic growth and power purchase agreement opportunities relating to the BKV-BPP Power Joint Venture and the BKV-BPP Power Joint Venture Transaction, as well as guidance, projected or forecasted financial and operating results, future liquidity, leverage, results in certain basins, objectives, project timing, utility of reporting segment changes, expectations and intentions, regulatory and governmental actions and other statements that are not historical facts. All forward-looking statements, expressed or implied, in this press release are based only on information currently available to BKV and speak only as of the date on which they are made. Forward-looking statements are not guarantees of future performance, and BKV cannot assure any reader that those statements will be realized or that the forward-looking events and circumstances will occur. Undue reliance should not be placed on any forward-looking statement, which is based on predictions of future results that may not occur as anticipated. Forward-looking statements are based on management’s current views and assumptions and involve risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations, including but not limited to assumptions, risks and uncertainties regarding the BKV-BPP Power Joint Venture Transaction and the anticipated benefits thereof and the Bedrock Acquisition and the anticipated benefits thereof, as well as our ability to effectively operate and grow our CCUS business, expected increase in demand for power generation and our ability to serve that demand from our power business, our ability to develop, market and sell our carbon sequestered gas product; and management’s outlook guidance or forecasts of future events, including projected capital expenditures, production volumes, operating costs, pricing differentials, and Adjusted EBITDAX. For further discussions of risks and uncertainties applicable to forward-looking statements, you should refer to BKV’s filings with the Securities and Exchange Commission (the “SEC”), including the “Risk Factors” section of BKV’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q.

BKV Corporation Condensed Consolidated Balance Sheets ($ thousands, except par value) (Unaudited)
	March 31, 2026				December 31, 2025 (1)
Assets
Current assets
Cash and cash equivalents	$	288,536			$	248,427
Restricted cash		15,974				15,846
Accounts receivable, net		141,722				129,077
Accounts receivable, related parties		11,282				11,196
Prepaid expenses		13,258				14,720
Inventory		18,761				20,039
Commodity derivative assets, current		72,216				63,900
Other current assets		6,245				8,150
Total current assets		567,994				511,355
Natural gas properties and equipment
Developed properties		3,016,204				2,965,638
Undeveloped properties		13,416				13,182
Midstream assets		278,340				277,974
Accumulated depreciation, depletion, and amortization		(884,546	)			(849,464	)
Total natural gas properties, net		2,423,414				2,407,330
Other property and equipment, net		1,057,960				944,412
Deposits		48,402				14,247
Goodwill		18,417				18,417
Commodity derivative assets		36,422				26,432
Other noncurrent assets		18,923				17,064
Total assets	$	4,171,532			$	3,939,257
Liabilities, mezzanine equity, and equity
Current liabilities
Accounts payable and accrued liabilities	$	217,441			$	229,487
Commodity derivative liabilities, current		17,526				8,469
Income taxes payable to related party		978				810
Payable to BPPUS for the BKV-BPP Power Joint Venture Transaction		—				115,136
Current portion of Temple I Loan Agreements		176,000				191,000
Current portion of long-term debt, net		9,387				9,387
Other current liabilities		11,248				10,302
Total current liabilities		432,580				564,591
Asset retirement obligations		197,014				230,372
Commodity derivative liabilities		1,160				5,767
Deferred tax liability, net		140,139				128,839
Long-term debt, net		1,080,913				937,724
Other noncurrent liabilities		8,638				5,223
Total liabilities		1,860,444				1,872,516
Commitments and contingencies
Mezzanine equity
Noncontrolling interest		18,622				12,951
Stockholders’ equity
Common stock, $0.01 par value; 500,000 authorized shares; 109,385 and 96,872 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively		1,760				1,635
Treasury stock, shares at cost; 214 shares as of March 31, 2026 and December 31, 2025		(6,663	)			(6,663	)
Additional paid-in capital		1,864,963				1,676,785
Retained earnings		352,385				309,051
Total stockholders’ equity		2,212,445				1,980,808
Noncontrolling interest		80,021				72,982
Total equity		2,292,466				2,053,790
Total liabilities, mezzanine equity, and equity	$	4,171,532			$	3,939,257

(1) The financial information presented in the condensed consolidated financial statements has been retrospectively adjusted for the BKV-BPP Power Joint Venture Transaction, which was accounted for as a transaction between entities under common control, with prior periods recast as if the transaction had occurred at the beginning of the earliest period presented. For additional information, see Note 2 – Acquisition to our condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the period ended March 31, 2026.

BKV Corporation Condensed Consolidated Statements of Operations ($ thousands, except per share amounts) (Unaudited)
		Three Months Ended March 31,
			2026				2025 (1)
Revenues and other operating income
Natural gas, NGL, and oil sales		$	287,675			$	216,126
Midstream revenues			2,296				2,771
Derivative gains (losses), net			53,109				(98,383	)
Marketing revenues			17,585				9,686
Section 45Q tax credits			3,060				3,307
Power revenues			68,990				43,864
Other			132				(1,305	)
Total revenues and other operating income			432,847				176,066
Operating expenses
Lease operating and workover			45,075				35,055
Fuel commodity costs			57,121				46,363
Purchased power			27,355				18,667
Taxes other than income			20,202				14,790
Gathering and transportation			67,802				55,793
Depreciation, depletion, amortization, and accretion			52,941				49,597
Power operating and maintenance			19,679				20,213
General and administrative			42,130				29,069
Other operating expenses			14,516				6,616
Total operating expenses			346,821				276,163
Income (loss) from operations			86,026				(100,097	)
Other income (expense)
Interest expense			(22,830	)			(16,049	)
Interest expense, related party			(4,269	)			(5,076	)
Interest income			1,498				749
Other income			2,888				3,034
Income (loss) before income taxes			63,313				(117,439	)
Income tax benefit (expense)			(11,469	)			30,668
Net income (loss)			51,844				(86,771	)
Less: net income (loss) attributable to noncontrolling interest			7,769				(4,792	)
Net income (loss) attributable to BKV		$	44,075			$	(81,979	)
Net income (loss) per common share attributable to BKV:
Basic		$	0.42			$	(0.97	)
Diluted		$	0.42			$	(0.97	)
Weighted average number of common shares outstanding:
Basic			102,018				84,706
Diluted			102,304				84,706

(1) The financial information presented in the condensed consolidated financial statements has been retrospectively adjusted for the BKV-BPP Power Joint Venture Transaction, which was accounted for as a transaction between entities under common control, with prior periods recast as if the transaction had occurred at the beginning of the earliest period presented. For additional information, see Note 2 – Acquisition to our condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the period ended March 31, 2026.

BKV Corporation Condensed Consolidated Statements of Cash Flows ($ thousands) (Unaudited)
		Three Months Ended March 31,
			2026				2025(1)
Cash flows from operating activities:
Net income (loss)		$	51,844			$	(86,771	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion, amortization, and accretion			54,165				49,711
Equity-based compensation expense			3,907				2,067
Deferred income tax expense (benefit)			11,300				(31,098	)
Unrealized (gains) losses on derivatives, net			(13,856	)			147,035
Impairment of asset held for sale			—				2,446
Settlement of contingent consideration			—				(20,000	)
Payments for the purchase of put options			—				(16,206	)
Other, net			1,905				2,850
Changes in operating assets and liabilities:
Accounts receivable, net			(13,443	)			(12,805	)
Accounts receivable, related party			(86	)			(262	)
Accounts payable and accrued liabilities			(23,470	)			(26,036	)
Other changes in operating assets and liabilities			(277	)			5,522
Net cash provided by operating activities			71,989				16,453
Cash flows from investing activities:
Asset acquisition			(93,414	)			—
Deposits on fixed asset purchases			(33,050	)			—
Capital expenditures			(106,527	)			(57,612	)
Proceeds from sales of assets			171				1,109
Other investing activities, net			—				257
Net cash used in investing activities			(232,820	)			(56,246	)
Cash flows from financing activities:
Proceeds from issuance of common stock, net of underwriting discounts and commissions			186,174				—
Acquisition of affiliate (common control)			(115,136	)			—
Payment of debt issuance costs			(892	)			—
Payments on Temple Term Loan Facility			(2,500	)			(2,500	)
Proceeds from Promissory Note			46,000				—
Payments on Temple I Loan Agreements			(15,000	)			—
Proceeds under RBL Credit Agreement			330,000				170,000
Payments on RBL Credit Agreement			(230,000	)			(135,000	)
Net share settlements, equity-based compensation			(2,055	)			(1,181	)
Cash contributions from noncontrolling interest			4,200				—
Common stock issued from employee purchase plan			277				—
Net cash provided by financing activities			201,068				31,319
Net increase (decrease) in cash, cash equivalents, and restricted cash			40,237				(8,474	)
Cash, cash equivalents, and restricted cash, beginning of period			264,273				96,998
Cash, cash equivalents, and restricted cash, end of period		$	304,510			$	88,524

(1) The financial information presented in the condensed consolidated financial statements has been retrospectively adjusted for the BKV-BPP Power Joint Venture Transaction, which was accounted for as a transaction between entities under common control, with prior periods recast as if the transaction had occurred at the beginning of the earliest period presented. For additional information, see Note 2 – Acquisition to our condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the period ended March 31, 2026.

Derivative Contract Volumes and Fair Values

The following tables summarize the Company’s outstanding derivative positions as of March 31, 2026 by commodity and contract type, including volume, pricing indices, or reference points, and associated fair values.

The following table summarizes the Company’s power derivatives:

Instrument		Units		Quantity			Pricing Index		Fair Value as of March 31, 2026 ($ thousands)
2026
Swap		MMBtu		6,132,000			HSC Gas Daily		$	(3,821	)
Power forwards – sales		MWh		876,000			ERCOT North		$	8,717
Heat rate call option		MMBtu		5,256,000			Various		$	25,827
Power forwards – purchases		MWh		(573,011	)		Various		$	(7,085	)

The following table represents natural gas commodity derivatives indexed to NYMEX Henry Hub pricing:

Instrument		MMBtu		Weighted Average Price (USD)			Weighted Average Price Floor			Weighted Average Price Ceiling			Fair Value as of March 31, 2026 ($ thousands)
2026
Swap		121,458,622		$	3.86								$	56,026
2027
Swap		98,958,854		$	3.99								$	20,643
Collars		37,662,319					$	3.57		$	4.00		$	(257	)
Call options		36,500,000								$	5.00		$	(11,750	)
Put options		36,500,000					$	3.00					$	10,295
2028
Swap		94,085,323		$	3.79								$	4,073
2029
Swap		34,675,000		$	3.60								$	(157	)

The following table represents natural gas basis derivatives by reference price listed below:

Instrument		Basis Reference Price		MMBtu		Weighted Average Basis Differential				Fair Value as of March 31, 2026 ($ thousands)
2026
Swap		Transco Leidy Basis		39,713,234		$	(0.79	)		$	1,541
Swap		HSC Basis		41,250,000		$	(0.32	)		$	5,209
Swap		Transco St 85 (Z4) Basis		27,500,000		$	0.62			$	3,220
Swap		NGPL TXOK Basis		35,794,014		$	(0.37	)		$	3,134
2027
Swap		Transco Leidy Basis		10,950,000		$	(0.76	)		$	(1,313	)
Swap		HSC Basis		7,300,000		$	(0.25	)		$	1,303
Swap		NGPL TXOK Basis		16,965,270		$	(0.31	)		$	1,559
2028
Swap		NGPL TXOK Basis		7,320,000		$	(0.76	)		$	(568	)
Swap		HSC Basis		10,980,000		$	(0.17	)		$	1,288

The following table summarizes the Company’s natural gas liquids derivatives position by product and reference price:

Instrument		Commodity Reference Price		Gallons		Weighted Average Price (USD)			Fair Value as of March 31, 2026 ($ thousands)
2026
Swap		OPIS Purity Ethane Mont Belvieu		102,240,321		$	0.25		$	432
Swap		OPIS IsoButane Mont Belvieu Non-TET		10,677,157		$	0.86		$	(2,087	)
Swap		OPIS Normal Butane Mont Belvieu Non-TET		17,555,154		$	0.82		$	(3,738	)
Swap		OPIS Propane Mont Belvieu Non-TET		61,367,542		$	0.69		$	(5,274	)
Swap		OPIS Natural Gasoline Mont Belvieu Non-TET		27,359,457		$	1.38		$	(12,071	)
2027
Swap		OPIS Purity Ethane Mont Belvieu		79,965,970		$	0.28		$	2,908
Swap		OPIS IsoButane Mont Belvieu Non-TET		8,864,077		$	0.82		$	(860	)
Swap		OPIS Normal Butane Mont Belvieu Non-TET		14,071,274		$	0.78		$	(1,452	)
Swap		OPIS Propane Mont Belvieu Non-TET		49,204,884		$	0.66		$	(2,739	)
Swap		OPIS Natural Gasoline Mont Belvieu Non-TET		22,107,531		$	1.28		$	(3,051	)

Supplemental Non-GAAP Financial Measures

This release includes the non-GAAP financial measures described below. These non-GAAP measures are intended to provide additional information only and should not be considered as alternatives to, or more meaningful than, net income (loss) attributable to BKV, basic and diluted EPS, net income (loss), net cash provided by operating activities, or any other measure calculated in accordance with GAAP.

As a result of the Company’s acquisition of an additional 25% ownership interest in and consolidation of the BKV-BPP Power JV as of January 30, 2026, the Company has adjusted its non-GAAP measures of Combined Adjusted EBITDAX, Adjusted Free Cash Flow, and Adjusted Free Cash Flow Margin. Beginning in the first quarter of 2026, the Company will disclose Adjusted Net Income (Loss) attributable to BKV, Adjusted EPS attributable to BKV, Adjusted EBITDAX, Adjusted EBITDAX attributable to BKV, Adjusted EBITDAX attributable to Noncontrolling Interests, Adjusted Free Cash Flow before Power Growth, and Adjusted Free Cash Flow before Power Growth attributable to BKV. Such non-GAAP measures have been presented in this release for the comparative period and have been calculated based on the definitions below.

Adjusted Net Income (Loss) Attributable to BKV and Adjusted EPS Attributable to BKV

The Company defines Adjusted Net Income (Loss) attributable to BKV as net income (loss) attributable to BKV before (i) net unrealized derivative (gains) losses, (ii) forward month gas settlements, (iii) impairment of assets held for sale, (iv) other nonrecurring transactions, and (v) the tax impact of these adjustments calculated using a 23% statutory rate. The Company defines Adjusted EPS attributable to BKV as Adjusted Net Income (Loss) attributable to BKV divided by diluted weighted average common shares outstanding.

We believe Adjusted Net Income (Loss) attributable to BKV and Adjusted EPS attributable to BKV are useful performance measures because they allow us to effectively evaluate our operating performance and results of operations from period to period and against our peers, without regard to our financing methods, corporate form, capital structure, or one-time events. We exclude the items listed above from net income (loss) attributable to BKV in arriving at Adjusted Net Income (Loss) attributable to BKV and Adjusted EPS attributable to BKV because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures, and the method by which the assets were acquired. Our presentation of Adjusted Net Income (Loss) attributable to BKV and Adjusted EPS attributable to BKV should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Other companies, including other companies in our industry, may not use Adjusted Net Income (Loss) attributable to BKV and Adjusted EPS attributable to BKV or may calculate this measure differently than as presented in this release, limiting its usefulness as a comparative measure.

The table below presents a reconciliation of Adjusted Net Income (Loss) attributable to BKV to net income (loss) attributable to BKV, our most directly comparable GAAP financial measure for the periods indicated.

	Three Months Ended March 31,
($ Thousands, except EPS)		2026				2025
Net income (loss) attributable to BKV	$	44,075			$	(81,979	)
Adjustment to net income (loss) attributable to BKV:
Net unrealized derivative (gains) losses		(13,856	)			147,035
Forward month gas settlement (1)		(23,445	)			3,997
Impairment of asset held for sale		—				2,446
Other nonrecurring transactions		9,090				1,555
Total adjustments before taxes		(28,211	)			155,033
Tax effect of adjustments		6,489				(35,658	)
Total adjustments after taxes		(21,722	)			119,375
Adjusted Net Income (Loss) attributable to BKV	$	22,353			$	37,396
Adjusted EPS attributable to BKV:
Basic	$	0.22			$	0.44
Diluted	$	0.22			$	0.44
Basic weighted-average shares of common stock outstanding		102,018				84,706
Add dilutive effects of TRSUs		153				22
Add dilutive effects of PRSUs		133				—
Diluted weighted-average shares of common stock outstanding		102,304				84,728

(1) Natural gas derivative contracts settle and are realized in the month prior to the production covered by the contract. This adjustment removes the timing difference between the settlement date and the underlying production month that is hedged.

Adjusted EBITDAX, Adjusted EBITDAX Attributable to BKV, and Adjusted EBITDAX Attributable to Noncontrolling Interests

The Company defines Adjusted EBITDAX as income (loss) from operations before (i) depreciation, depletion, amortization, and accretion, (ii) net unrealized derivative (gains) losses, (iii) forward month gas settlement, (iv) equity-based compensation expense, (v) exploration and impairment expense, (vi) other income (expense) and (vii) other nonrecurring transactions. Adjusted EBITDAX attributable to BKV is defined as Adjusted EBITDAX less Adjusted EBITDAX attributable to Noncontrolling Interests.

The Company excludes the items listed above from income (loss) from operations in arriving at Adjusted EBITDAX because these amounts can vary substantially from company to company within our industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDAX should not be considered as an alternative to, or more meaningful than, income (loss) from operations determined in accordance with GAAP. Certain items excluded from Adjusted EBITDAX are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax burden, as well as the historic costs of depreciable assets, none of which are reflected in Adjusted EBITDAX. Our presentation of Adjusted EBITDAX should not be construed as an inference that our results will be unaffected by unusual or non-recurring items. Other companies, including other companies in our industry, may not use Adjusted EBITDAX or may calculate this measure differently than as presented in this release, limiting its usefulness as a comparative measure.

Adjusted EBITDAX is a supplemental non-GAAP financial measure that is used by our management and external users of our consolidated financial statements, such as industry analysts, investors, lenders, rating agencies and others to more effectively evaluate our operating performance and results of operations from period to period and against our peers. We believe Adjusted EBITDAX is a useful performance measure because it allows us to effectively evaluate our operating performance and results of operations from period to period and against our peers, without regard to our financing methods, corporate form or capital structure.

The table below presents a reconciliation of Adjusted EBITDAX to income (loss) from operations, our most directly comparable GAAP financial measure for the periods indicated.

	Three Months Ended March 31,
($ Thousands)		2026				2025
Income (loss) from operations	$	86,026			$	(100,097	)
Add back (subtract):
Depreciation, depletion, amortization, and accretion		54,165				49,711
Net unrealized derivative (gains) losses		(13,856	)			147,035
Forward month gas settlement (1)		(23,445	)			3,997
Equity-based compensation expense		3,907				2,067
Impairment of asset held for sale		—				2,446
Other income (expense)		2,888				3,034
Other nonrecurring transactions		9,090				1,555
Adjusted EBITDAX		118,775				109,748
(Deduct) add: Adjusted EBITDAX attributable to Noncontrolling Interests (2)		(6,798	)			(4,746	)
Adjusted EBITDAX attributable to BKV	$	111,977			$	105,002

(1) Natural gas derivative contracts settle and are realized in the month prior to the production covered by the contract. This adjustment removes the timing difference between the settlement date and the underlying production month that is hedged.
(2) Non-GAAP financial measure, see below for a reconciliation of this non-GAAP financial measure to the most comparable financial measure in accordance with GAAP.

The Company defines Adjusted EBITDAX attributable to Noncontrolling Interests as the proportionate share of Adjusted EBITDAX attributable to Noncontrolling Interests in the CCUS JV and the Power JV, our non-wholly owned consolidated subsidiaries. The table below reconciles Adjusted EBITDAX attributable to Noncontrolling Interests to net income (loss) attributable to Noncontrolling Interest, the most comparable financial measure in accordance with GAAP.

		Three Months Ended March 31,
($ Thousands)			2026				2025
Net income (loss) attributable to noncontrolling interest		$	7,769			$	(4,792	)
Add back (subtract):
Interest expense, net			3,385				3,868
Depreciation and amortization			3,142				2,407
EBITDAX before adjustments			14,296				1,483
Net unrealized derivative (gains) losses			(7,498	)			3,263
Adjusted EBITDAX attributable to Noncontrolling Interests		$	6,798			$	4,746

Adjusted Free Cash Flow before Power Growth and Adjusted Free Cash Flow before Power Growth Attributable to BKV

We define Adjusted Free Cash Flow before Power Growth as net cash provided by operating activities, excluding cash paid for contingent consideration and changes in operating assets and liabilities, less total cash paid for capital expenditures (excluding leasehold costs and acquisitions), excluding strategic power growth capital expenditures. Adjusted Free Cash Flow before Power Growth attributable to BKV is defined as Adjusted Free Cash Flow before Power Growth, less Adjusted EBITDAX attributable to Noncontrolling Interests, with net interest expense attributable to noncontrolling interest added back, plus net contributions from noncontrolling interest.

Adjusted Free Cash Flow before Power Growth and Adjusted Free Cash Flow before Power Growth attributable to BKV are not measures of net cash provided by or used in operating activities as determined by GAAP. These measures are supplemental non-GAAP financial measures used by management and external users of our financial statements, including industry analysts, investors, lenders and rating agencies, to assess our ability to internally fund our capital program, service or incur additional debt and pay dividends. Adjusted Free Cash Flow before Power Growth reflects cash flow available to fund our capital program excluding strategic power growth capital expenditures, while Adjusted Free Cash Flow before Power Growth attributable to BKV further adjusts for noncontrolling interests to reflect amounts attributable to common shareholders. We believe these measures are useful indicators of liquidity because they facilitate period-over-period comparisons of cash flow provided by operating activities and our ability to internally fund our capital program (including acquisitions), reduce leverage, fund acquisitions and return capital to shareholders. Adjusted Free Cash Flow before Power Growth and Adjusted Free Cash Flow before Power Growth attributable to BKV should not be considered an alternative to, or more meaningful than, net income (loss) or net cash provided by (used in) operating activities determined in accordance with GAAP. Other companies, including those in our industry, may define these measures differently, limiting its usefulness as a comparative measure.

The table below presents our reconciliation of Adjusted Free Cash Flow before Power Growth and Adjusted Free Cash Flow before Power Growth attributable to BKV to net cash provided by operating activities, our most directly comparable GAAP financial measure for the periods indicated.

		Three Months Ended March 31,
($ Thousands)			2026				2025
Net cash provided by operating activities		$	71,989			$	16,453
Cash paid for contingent consideration (1)			—				(20,000	)
Change in operating assets and liabilities			37,276				33,581
Cash paid for capital expenditures (excl. leasehold costs, acquisitions)			(106,527	)			(57,612	)
Strategic Power Growth capital expenditures			16,457				—
Adjusted Free Cash Flow before Power Growth		$	19,195			$	(27,578	)
Add back (subtract):
Adjusted EBITDAX attributable to Noncontrolling Interests			(6,798	)			(4,746	)
Net interest expense attributable to Noncontrolling Interests			3,385				3,868
Net contributions from Noncontrolling Interests			4,200				—
Adjusted Free Cash Flow attributable to BKV before Power Growth		$	19,982			$	(28,456	)

(1) Cash paid for contingent consideration is included as a deduction to arrive at net cash provided by operating activities and therefore, is added back for the purpose of computing Adjusted Free Cash Flow before Power Growth.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507742272/en/

Investor Contacts:

Michael Hall

BKV Corporation

Vice President, Investor Relations

[email protected]

Patrick Freeman

BKV Corporation

Senior Director, Investor Relations

[email protected]

KEYWORDS: Colorado United States North America

INDUSTRY KEYWORDS: Energy Other Energy Oil/Gas

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