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Weight Watchers Announces First Quarter 2026 Results

Total End of Period Subscribers of 2.7 million; End of Period Clinical Subscribers of 197 thousand, up 46% year-over-year

Revenue of $168 million; Clinical Subscription Revenue of $39 million, up 32% year-over-year

Reaffirms Full Year 2026 Financial Guidance

Announces Fully Subscribed Debt Prepayment Solicitation as Part of Actions Expected to Reduce Debt by $42 Million

NEW YORK, May 07, 2026 (GLOBE NEWSWIRE) — WW International, Inc. (Nasdaq: WW) (“Weight Watchers” or the “Company”), the global leader in science-backed weight management, today announced its results for the first quarter of fiscal 2026 ended March 31, 20261 in this Earnings Press Release and a Shareholder Letter issued today and posted on the Company’s Corporate Website.

“We remain confident in our strategy to build the industry-leading weight health platform. Our focus is on executing high-impact initiatives that drive Clinical growth and stabilize our Behavioral business,” said Jon Volkmann, Chief Operations Officer and member of the Company’s Interim Office of the Chief Executive. “We made encouraging progress in Q1, with End of Period Clinical Subscribers growing 51% sequentially, and Core+, our higher value Behavioral tier that includes expert support and community experiences, returning to year-over-year growth.”

“We are pleased with our Q1 results. Adjusted Gross Margin2 remains near record highs as we continue to drive operational efficiencies across our portfolio of businesses,” said Felicia DellaFortuna, Chief Financial Officer and member of the Company’s Interim Office of the Chief Executive. “We are reaffirming our 2026 Revenue and Adjusted EBITDA2 guidance and expect Adjusted EBITDA2 and cash generation to increase in the remaining quarters of 2026. Our strengthened capital structure, including the recently announced debt prepayment actions, position us to execute on our transformation while maintaining financial discipline.”


Q1 Business Updates

  • Q1 2026 Clinical Subscription Revenue grew 32% year-over-year and End of Period Clinical Subscribers grew 46% year-over-year, despite lapping significant prior year growth in Q1 2025 from the Company’s former compounded semaglutide offering.
  • Core+ represented 537 thousand of End of Period Subscribers at the end of Q1 2026, which increased 6% from 505 thousand End of Period Subscribers at the end of Q1 2025.
  • Q1 Monthly Subscription Revenue Per Average Subscriber (ARPU) increased 13% year-over-year, reflecting a continued mix shift towards the Company’s higher ARPU Med+ and Core+ membership tiers. This mix shift partially offset secular headwinds in the Company’s Core membership tier that drove a 10% decrease in Revenue year-over-year.
  • Q1 Gross Margin was 70.5%. Q1 Adjusted Gross Margin2 was 73.6%, which remained near record highs, despite an accelerating mix shift towards Clinical, as margin profiles improved through structural actions and operational efficiencies.
  • Q1 Net Loss was $52.0 million, which reflects higher depreciation and amortization related to Fresh Start Accounting1. Q1 Adjusted EBITDA2 was a loss of $1.8 million reflecting marketing investment in peak season.


Balance Sheet and Liquidity Updates

  • Cash and Cash Equivalents balance as of March 31, 2026 was $121 million.
  • In Q2 2026, the Company expects to pay $37 million in cash to prepay and reduce the principal amount of its outstanding term loan. The prepayment will be comprised of the following two components:
    • In June 2026, $27 million in aggregate principal amount of prepayment from the annual cash sweep; and
    • In May 2026, $10 million as part of the previously announced voluntary solicitation, which was fully subscribed at 68.5% of par.

The Company expects these actions to reduce the aggregate principal amount of its outstanding term loan by $42 million, utilizing $37 million of cash, and to reduce its annualized interest expense by approximately $4 million3.


Fiscal 2026 Guidance

The Company reaffirms previously provided full year fiscal 2026 guidance.

  • Revenue guidance of $620 million to $635 million.
  • Adjusted EBITDA2 guidance of $105 million to $115 million.


First Quarter 2026 Conference Call and Webcast

The Company has scheduled a conference call today at 8:30 a.m. ET to discuss results. The webcast of the conference call will be available on the Company’s corporate website, corporate.ww.com, under Events and Presentations. A replay of the webcast will be available on this site for at least 90 days.


1


Fresh Start Accounting and Predecessor and Successor Periods

In connection with the Company’s emergence from its financial reorganization process on June 24, 2025, the Company applied fresh start accounting which resulted in Successor and Predecessor financial statement presentation. References to “Successor” relate to the Company’s operations for the three months ended March 31, 2026 and the period from June 25, 2025 through December 31, 2025. References to “Predecessor” relate to the Company’s operations for the three months ended March 29, 2025. Accordingly, the consolidated financial statements after June 24, 2025 are not comparable with the consolidated financial statements as of or prior to that date.


2


Statement regarding Non-GAAP Financial Measures

To supplement the Company’s consolidated results presented in accordance with accounting principles generally accepted in the United States (“GAAP”), the Company has disclosed non-GAAP financial measures of operating results that exclude or adjust certain items. The Company presents in this release non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization expenses and share-based compensation expense (“EBITDA”); and for each period presented, EBITDA adjusted, as applicable, for (a) goodwill and other intangible assets impairments, (b) reorganization items, net related to the Company’s emergence from its Chapter 11 financial reorganization, (c) transaction costs related to strategic alternatives and the Company’s Chapter 11 financial reorganization, (d) net restructuring charges associated with the previously disclosed 2025, 2024, and 2023 restructuring plans, (e) non-CEO executive separation expenses and (f) other items such as the impact of foreign exchange gains and losses as indicated in the reconciliations below that management believes are not indicative of ongoing operations (“Adjusted EBITDA”). The Company also presents gross profit, gross margin, marketing expenses, selling, general and administrative expenses, and product development expenses on a non-GAAP basis that adjusts for similar items, as further indicated in the reconciliations below.

As exchange rates are an important factor in understanding period-to-period comparisons, the Company believes in certain cases the presentation of results on a constant currency basis in addition to reported results helps improve investors’ ability to understand the Company’s operating results and evaluate the Company’s performance in comparison to prior periods. Constant currency information compares results between periods as if exchange rates had remained constant period-over-period. The Company uses results on a constant currency basis as one measure to evaluate the Company’s performance. In this press release, the Company calculates constant currency by calculating current-year results using prior-year foreign currency exchange rates. The Company generally refers to such amounts calculated on a constant currency basis as excluding or adjusting for the impact of foreign currency or being on a constant currency basis. These results should be considered in addition to, not as a substitute for, results reported in accordance with GAAP and are not meant to be considered in isolation. Results on a constant currency basis, as the Company presents them, may not be comparable to similarly titled measures used by other companies and are not measures of performance presented in accordance with GAAP.

Management believes these non-GAAP financial measures provide useful supplemental information to investors regarding the performance of the Company’s business and are useful for period-over-period comparisons of the performance of the Company’s business. While the Company believes that these non-GAAP financial measures are useful in evaluating the Company’s business, this information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies. See “Reconciliation of Non-GAAP Financial Measures” in this release and reconciliations, if any, included elsewhere in this release for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures.

A reconciliation of the forward-looking full year Adjusted EBITDA outlook to net income cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of the Company’s control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.


3
The interest rate in effect for the term loan as of March 31, 2026 was 10.51%.


Definitions

“Behavioral” business refers to providing subscriptions to the Company’s digital product offerings with the option to add on unlimited access to the Company’s workshops.

“Clinical” business refers to providing subscriptions to the Company’s clinical product offerings provided by Weight Watchers Clinic combined with the Company’s digital subscription product offerings and unlimited access to the Company’s workshops.

“Revenue” – “Subscription Revenue” consists of the aggregate of: (a) “Behavioral Subscription Revenue”, the fees associated with subscriptions for the Company’s Behavioral offerings; and (b) “Clinical Subscription Revenue”, the fees associated with subscriptions for the Company’s Clinical offerings. In addition, “Other Revenue” consists of revenue from licensing, franchise fees with respect to commitment plans and royalties, publishing and other revenue. “Revenue” consists of the aggregate of Subscription Revenue and Other Revenue.

“Incoming Subscribers” – “Subscribers” refer to Behavioral subscribers and Clinical subscribers who participate in recurring bill programs in Company-owned operations. The “Incoming Subscribers” metric reports Subscribers in Company-owned operations at a given period start. Recruitment and retention are key drivers for this metric. Management utilizes this metric to monitor changes in the subscriber base which directly impacts the Company’s revenue growth and trends.

“End of Period Subscribers” – The “End of Period Subscribers” metric reports Subscribers in Company-owned operations at a given period end. Recruitment and retention are key drivers for this metric. Management utilizes this metric to monitor changes in the subscriber base which directly impacts the Company’s revenue growth and trends.

“Monthly Subscription Revenue Per Average Subscriber” (“ARPU”) – The “Monthly Subscription Revenue Per Average Subscriber” metric reports the monthly fees associated with subscriptions for the Company’s offerings divided by the Average Subscriber for its businesses. Monthly Subscription Revenue for both quarterly and year-to-date periods for each respective business are calculated as Subscription Revenue divided by the number of months in the respective quarterly or year-to-date period. The “Average Subscriber” for quarterly periods for each respective business is the average of its Incoming Subscribers and End of Period Subscribers for the respective quarterly period. The “Average Subscriber” for year-to-date periods for each respective business is the average of its Incoming Subscribers at the beginning of the fiscal year and its End of Period Subscribers for each quarter end within the respective year-to-date period. Management utilizes this metric to consider revenue growth and trends on a per subscriber basis.

About Weight Watchers

Weight Watchers is the global leader in science-backed weight management, offering an integrated support system built for the GLP-1 era that combines scientific expertise, medication, cutting-edge technology, and human connection. With more than 60 years of experience, Weight Watchers is the most studied commercial weight management program in the world, delivered through its No. 1 U.S. doctor-recommended weight-loss program. Its holistic, personalized approach also includes U.S.-based clinical interventions and access to GLP-1 medications when clinically appropriate, and a global network of coaches and community support. Since 1963, the company has led with science to deliver its members the personalized support they need to reach and sustain their goals. Members can access these solutions directly, or through Weight Watchers for Business’ full-spectrum platform for employers, health plans, and payers. In a landscape crowded with contradictory advice, isolating apps, and one-size-fits-all solutions, Weight Watchers offers a proven path forward that is rooted in research, grounded in empathy and designed to help every member feel better in their body and live a longer, healthier life. For more information, visit weightwatchers.com.

This news release includes “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, in particular, any statements about the Company’s plans, strategies, objectives, initiatives, and prospects. The Company generally uses the words “may,” “will,” “could,” “expect,” “anticipate,” “believe,” “estimate,” “plan,” “intend,” “aim” and similar expressions in this news release to identify forward-looking statements. The Company bases these forward-looking statements on its current views with respect to future events and financial performance. Actual results could differ materially from those projected in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions, including, among other things: the Company’s recent emergence from bankruptcy, which could adversely affect its business and relationships and subjects us to risks and uncertainties; competition from other weight management and health and wellness industry participants or the development of more effective or more favorably perceived weight management methods; the Company’s failure to continue to retain and grow its subscriber base; the Company’s ability to be a leader in the rapidly evolving and increasingly competitive clinical weight management and weight loss market; the Company’s ability to continue to develop new, innovative services and products and enhance its existing services and products or the failure of its services, products or brands to continue to appeal to the market, or its ability to successfully expand into new channels of distribution or respond to consumer trends or sentiment; the Company’s ability to successfully implement strategic initiatives; the effectiveness and efficiency of its advertising and marketing programs, including the strength of its social media presence; the impact on the Company’s reputation of actions taken by its franchisees, licensees, suppliers, affiliated provider entities, PCs’ healthcare professionals, and other partners; the recognition of asset impairment charges; the loss of key personnel, strategic partners or consultants or failure to effectively manage and motivate the Company’s workforce; the Company’s chief executive officer transition, and its ability to appoint a new chief executive officer with the required level of experience and expertise in a timely manner; the Company’s ability to successfully make acquisitions or enter into collaborations or joint ventures, including its ability to successfully integrate, operate or realize the anticipated benefits of such businesses; uncertainties related to a downturn in general economic conditions or consumer confidence, including as a result of the existing inflationary environment, changes in tariffs and escalating trade tensions, rising interest rates, the potential impact of political and social unrest and increased volatility in the credit and capital markets; the seasonal nature of the Company’s business; the Company’s failure to maintain effective internal control over financial reporting; the impact of events that impede accessing resources or discourage or impede people from gathering with others; the early termination by us of leases; the inability to renew certain of the Company’s licenses, or the inability to do so on terms that are favorable to us; the dependence of the Company’s payments system on third-party service providers; the impact of the Company’s exposure to variable rate indebtedness; the ability to generate sufficient cash to service the Company’s debt and satisfy its other liquidity requirements; uncertainties regarding the satisfactory operation of the Company’s technology or systems; the impact of data security breaches and other malicious acts or privacy concerns, including the costs of compliance with evolving privacy laws and regulations; the Company’s ability to successfully integrate and use artificial intelligence in its business; the Company’s ability to enforce its intellectual property rights both domestically and internationally, as well as the impact of its involvement in any claims related to intellectual property rights; the impact of existing and future laws and regulations; risks related to the Company’s exposure to extensive and complex healthcare laws and regulations; the outcomes of litigation or regulatory actions; risks and uncertainties associated with the Company’s international operations, including regulatory, economic, political, social, intellectual property, and foreign currency risks, which risks may be exacerbated as a result of war and terrorism; the Company’s ability to engage in share repurchases and pay cash dividends in the foreseeable future; risks related to the actions of activist shareholders and anti-takeover provisions in the Company’s articles of incorporation and bylaws; risks related to the actions of the Company’s shareholders and the exclusive forum provisions in its articles of incorporation; the possibility that the Company could fail to maintain the listing of the Company’s common stock on Nasdaq; and other risks and uncertainties, including those included in this press release and those detailed from time to time in the Company’s periodic reports filed with the Securities and Exchange Commission (the “SEC”) (which are available on the SEC’s EDGAR database at www.sec.gov and via the Company’s website at corporate.ww.com). You should not put undue reliance on any forward-looking statements. You should understand that many important factors, including those discussed herein, could cause the Company’s results to differ materially from those expressed or suggested in any forward-looking statement. Except as required by law, the Company does not undertake any obligation to update or revise these forward-looking statements to reflect new information or events or circumstances that occur after the date of this news release or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review the Company’s filings with the SEC (which are available on the SEC’s EDGAR database at www.sec.gov and via the Company’s website at corporate.ww.com).

For investor inquiries, please contact:

John Mills or Anna Kate Heller
[email protected]

For media inquiries, please contact:

Lizzy Levitan
[email protected]

WW INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
UNAUDITED
         
         
    Successor
    March 31,   December 31,
      2026       2025  
ASSETS        
CURRENT ASSETS        
Cash and cash equivalents   $ 120,870     $ 160,279  
Restricted cash     5,797       6,298  
Receivables (net of allowances: March 31, 2026 – $1,935 and December 31, 2025 – $1,651)     16,856       16,378  
Prepaid income taxes     3,325       8,097  
Prepaid marketing and advertising     5,150       9,275  
Prepaid expenses and other current assets     16,347       13,277  
TOTAL CURRENT ASSETS     168,345       213,604  
Property and equipment, net     7,485       8,115  
Operating lease assets     2,549       2,933  
Goodwill     200,000       200,135  
Other intangible assets, net     471,528       490,664  
Deferred income taxes     16,254       16,482  
Other noncurrent assets     14,910       14,825  
TOTAL ASSETS   $ 881,071     $ 946,758  
LIABILITIES AND EQUITY        
CURRENT LIABILITIES        
Portion of long-term debt due within one year, net   $ 26,808     $ —  
Portion of operating lease liabilities due within one year     1,183       1,260  
Accounts payable     17,077       9,212  
Salaries and wages payable     20,364       34,375  
Accrued marketing and advertising     15,875       22,985  
Accrued interest     1,086       1,084  
Other accrued liabilities     21,641       23,049  
Income taxes payable     10,311       6,006  
Deferred revenue     26,749       28,565  
TOTAL CURRENT LIABILITIES     141,094       126,536  
Long-term debt, net     438,632       465,466  
Long-term operating lease liabilities     1,571       1,893  
Deferred income taxes     33,705       34,021  
Other noncurrent liabilities     498       771  
TOTAL LIABILITIES     615,500       628,687  
EQUITY        
Successor common stock, $0 par value; 1,000,000 shares authorized; 9.996 shares issued at March 31, 2026 and 9,992 shares issued at December 31, 2025     379,306       378,777  
Accumulated deficit     (114,095 )     (62,095 )
Accumulated other comprehensive income     360       1,389  
TOTAL EQUITY     265,571       318,071  
TOTAL LIABILITIES AND TOTAL EQUITY   $ 881,071     $ 946,758  
WW INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
UNAUDITED
           
           
    Successor     Predecessor
    Three Months Ended     Three Months Ended
    March 31, 2026     March 29, 2025
Subscription revenue, net(1)   $ 167,357       $ 185,180  
Other revenue, net(2)     904         1,391  
Revenue, net     168,261         186,571  
Cost of subscription revenue(3)     49,445         53,587  
Cost of other revenue     144         108  
Cost of revenue     49,589         53,695  
Gross profit     118,672         132,876  
Marketing expenses     92,934         78,778  
Product development expenses     8,093         11,121  
Selling, general and administrative expenses     48,084         35,629  
Franchise rights acquired impairments     —         27,549  
Operating loss     (30,439 )       (20,201 )
Interest expense     11,475         27,603  
Other (income) expense, net     (737 )       2,206  
Loss before income taxes     (41,177 )       (50,010 )
Provision for income taxes     10,823         22,575  
Net loss   $ (52,000 )     $ (72,585 )
           
Net loss per share          
Basic   $ (5.20 )     $ (0.91 )
Diluted   $ (5.20 )     $ (0.91 )
           
Weighted average common shares outstanding          
Basic     9,996         80,129  
Diluted     9,996         80,129  
           
           
Note: Totals may not sum due to rounding.          
(1)“Subscription revenue, net” consists of the aggregate of: (a) net “Behavioral Subscription Revenue”, the fees associated with subscriptions for the Company’s Behavioral offerings; and (b) net “Clinical Subscription Revenue”, the fees associated with subscriptions for the Company’s Clinical offerings.
(2)“Other revenue, net” consists of revenue from licensing, franchise fees with respect to commitment plans and royalties, publishing and other revenue.
(3)“Cost of subscription revenue” consists of cost of revenue and operating expenses for the Company’s Behavioral and Clinical services.
WW INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
UNAUDITED
           
           
    Successor     Predecessor
    Three Months Ended     Three Months Ended
    March 31, 2026     March 29, 2025
Operating activities:          
Net loss   $ (52,000 )     $ (72,585 )
Adjustments to reconcile net loss to cash (used for) provided by operating activities:          
Depreciation and amortization     25,886         6,914  
Amortization of deferred financing costs and debt (premium) discount, net     (26 )       1,254  
Impairment of franchise rights acquired     —         27,549  
Impairment of intangible and long-lived assets     3         94  
Share-based compensation expense     391         860  
Deferred tax benefit     (312 )       (2,529 )
Allowance for doubtful accounts     100         84  
Foreign currency exchange rate (gain) loss     (738 )       2,238  
Changes in cash due to:          
Receivables     (688 )       761  
Prepaid expenses     5,835         5,946  
Accounts payable     7,556         19,435  
Accrued liabilities     (21,854 )       8,785  
Deferred revenue     (1,722 )       (154 )
Other long term assets and liabilities, net     (302 )       (107 )
Income taxes     4,324         16,453  
Cash (used for) provided by operating activities     (33,547 )       14,998  
Investing activities:          
Capital expenditures     —         (5 )
Capitalized software and website development expenditures     (5,797 )       (3,170 )
Cash used for investing activities     (5,797 )       (3,175 )
Financing activities:          
Borrowings on revolving credit facility     —         171,341  
Taxes paid related to net share settlement of equity awards     —         (93 )
Cash provided by financing activities     —         171,248  
Effect of exchange rate changes on cash and cash equivalents and restricted cash     (566 )       1,529  
Net (decrease) increase in cash and cash equivalents and restricted cash     (39,910 )       184,600  
Cash and cash equivalents and restricted cash, beginning of period     166,577         56,520  
Cash and cash equivalents and restricted cash, end of period   $ 126,667       $ 241,120  
           
WW INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, EXCEPT PERCENTAGES)
UNAUDITED
                     
                     
                Variance
    Successor   Predecessor       2026
    Three Months Ended   Three Months Ended 2026
   Constant Currency
    March 31, 2026   March 29, 2025   vs   vs
    GAAP   Constant Currency   GAAP   2025
   2025
                     
Selected Financial Data                  
Revenue(1) $ 168,261   $ 164,007   $ 186,571   (9.8 %)   (12.1 %)
Behavioral Subscription Revenue(2) $ 128,524   $ 124,317   $ 155,723   (17.5 %)   (20.2 %)
Clinical Subscription Revenue(3) $ 38,833   $ 38,833   $ 29,457   31.8 %   31.8 %
Subscription Revenue(4) $ 167,357   $ 163,150   $ 185,180   (9.6 %)   (11.9 %)
Other Revenue(5) $ 904   $ 858   $ 1,391   (35.0 %)   (38.3 %)
                     
                     
Note: Totals may not sum due to rounding.                  
(1)“Revenue” consists of the aggregate of Subscription Revenue and Other Revenue.
(2)“Behavioral Subscription Revenue” consists of the fees associated with subscriptions for the Company’s Behavioral offerings.
(3)“Clinical Subscription Revenue” consists of the fees associated with subscriptions for the Company’s Clinical offerings.
(4)“Subscription Revenue” is the sum of Behavioral Subscription Revenue and Clinical Subscription Revenue.
(5)“Other Revenue” consists of revenue from licensing, franchise fees with respect to commitment plans and royalties, publishing and other revenue.
WW INTERNATIONAL, INC. AND SUBSIDIARIES
OPERATIONAL STATISTICS
(IN THOUSANDS, EXCEPT PERCENTAGES AND MONTHLY SUBSCRIPTION REVENUE PER AVERAGE SUBSCRIBER)
UNAUDITED
                     
                     
                 
    Successor   Predecessor        
    Three Months Ended   Three Months Ended        
    March 31, 2026   March 29, 2025   Variance   Variance
        (Constant Currency)           (Constant Currency)

Incoming Subscribers


(1)
 		                 
Incoming Behavioral Subscribers   2,631   N/A     3,244   (18.9 %)   N/A
Incoming Clinical Subscribers   130   N/A     92   41.9 %   N/A
Incoming Subscribers   2,761   N/A     3,336   (17.2 %)   N/A
                     

End of Period Subscribers


(2)
 		                 
End of Period Behavioral Subscribers   2,463   N/A     3,299   (25.4 %)   N/A
End of Period Clinical Subscribers   197   N/A     135   45.9 %   N/A
End of Period Subscribers   2,659   N/A     3,434   (22.6 %)   N/A
                     

Monthly Subscription Revenue Per Average Subscriber


(3)
 		                 
Monthly Behavioral Subscription Revenue Per Average Subscriber $ 16.82   $ 16.27   $ 15.87   6.0 %   2.6 %
Monthly Clinical Subscription Revenue Per Average Subscriber $ 79.23   $ 79.23   $ 86.70   (8.6 %)   (8.6 %)
Monthly Subscription Revenue Per Average Subscriber $ 20.59   $ 20.07   $ 18.24   12.9 %   10.0 %
                     
                     
Note: Totals may not sum due to rounding.                  
(1)The “Incoming Subscribers” metric reports WW subscribers in Company-owned operations at a given period start.
(2)The “End of Period Subscribers” metric reports WW subscribers in Company-owned operations at a given period end.
(3)The “Monthly Subscription Revenue Per Average Subscriber” metric reports the monthly fees associated with subscriptions for the Company’s offerings divided by the Average Subscriber for its businesses. Monthly Subscription Revenue for quarterly periods for each respective business is calculated as Subscription Revenue divided by the number of months in the respective quarterly period. The “Average Subscriber” for quarterly periods for each respective business is the average of its Incoming Subscribers and End of Period Subscribers for the respective quarterly period.
WW INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, EXCEPT PERCENTAGES)
UNAUDITED
                                   
                                   
                                   
    Successor     Predecessor
    Three Months Ended     Three Months Ended
    March 31, 2026     March 29, 2025
                Selling,                 Selling,
            Product   General, and             Product   General, and
    Gross   Marketing   Development   Administrative   Gross   Marketing   Development   Administrative
    Profit   Expenses   Expenses   Expenses     Profit   Expenses   Expenses   Expenses
                                   
GAAP $ 118,672     $ 92,934     $ 8,093     $ 48,084       $ 132,876     $ 78,778     $ 11,121     $ 35,629  
% of Revenue   70.5 %     55.2 %     4.8 %     28.6 %       71.2 %     42.2 %     6.0 %     19.1 %
                                   
Adjustments:                                
Transaction Costs(1) $ —     $ —     $ —     $ —       $ —     $ —     $ —     $ (10,823 )
Depreciation and Amortization Expenses   5,180       —       —       (20,706 )       4,500       —       (61 )     (2,354 )
Restructuring Charges(2)   (65 )     —       —       (533 )       (384 )     —       —       (1,356 )
Share-based Compensation Expense   0       (141 )     (109 )     (436 )       —       —       —       (860 )
Non-CEO Executive Separation Expenses(3)     —       —       —       (1,563 )       —       —       —       —  
Total Adjustments $ 5,115     $ (141 )   $ (109 )   $ (23,238 )     $ 4,116     $ —     $ (61 )   $ (15,394 )
                                   
Adjusted $ 123,787     $ 92,793     $ 7,984     $ 24,846       $ 136,992     $ 78,778     $ 11,060     $ 20,235  
% of Revenue   73.6 %     55.1 %     4.7 %     14.8 %       73.4 %     42.2 %     5.9 %     10.8 %
                                   
Currency Adjustment   (3,690 )     (959 )     —       (301 )     N/A   N/A   N/A   N/A
                                   
Constant Currency $ 114,982     $ 91,975     $ 8,093     $ 47,783       N/A   N/A   N/A   N/A
% of Revenue   70.1 %     56.1 %     4.9 %     29.1 %     N/A   N/A   N/A   N/A
                                   
Adjusted Constant Currency $ 120,097     $ 91,834     $ 7,984     $ 24,546       N/A   N/A   N/A   N/A
% of Revenue   73.2 %     56.0 %     4.9 %     15.0 %     N/A   N/A   N/A   N/A
                                   
                                   
Note: Totals may not sum due to rounding.                                
(1)Certain non-recurring transaction costs related to strategic alternatives and the Company’s Chapter 11 financial reorganization.
(2)Restructuring charges consist of expenses associated with the reduction in headcount as a result of certain strategic re-alignments. Restructuring charges include the previously disclosed 2025 restructuring plan, the previously disclosed 2024 restructuring plan and the previously disclosed 2023 restructuring plan.
(3)Certain non-recurring expenses in connection with the separation from the Company of a non-Chief Executive Officer executive.
WW INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, EXCEPT PERCENTAGES)
UNAUDITED
           
           
    Successor     Predecessor
    Three Months Ended     Three Months Ended
    March 31, 2026     March 29, 2025
           
Net Loss   $ (52,000 )     $ (72,585 )
Net Loss Margin     (30.9 %)       (38.9 %)
           
Interest     11,475         27,603  
Taxes     10,823         22,575  
Depreciation and Amortization Expenses     25,886         6,914  
Share-based Compensation Expense     686         860  
EBITDA   $ (3,130 )     $ (14,633 )
EBITDA Margin     (1.9 %)       (7.8 %)
           
Franchise Rights Acquired Impairments(1)     —         27,549  
Transaction Costs(2)     —         10,823  
Restructuring Charges(3)     468         972  
Non-CEO Executive Separation Expenses(4)     1,563         —  
Other(5)     (737 )       2,206  
Adjusted EBITDA   $ (1,836 )     $ 26,917  
Adjusted EBITDA Margin     (1.1 %)       14.4 %
           
           
Note: Totals may not sum due to rounding.          
(1)The Company’s franchise rights acquired impairment charge related to its United States unit of account.
(2)Certain non-recurring transaction costs related to strategic alternatives and the Company’s Chapter 11 financial reorganization.
(3)Restructuring charges consist of expenses associated with the reduction in headcount as a result of certain strategic re-alignments. Restructuring charges include the previously disclosed 2025 restructuring plan, the previously disclosed 2024 restructuring plan and the previously disclosed 2023 restructuring plan.
(4)Certain non-recurring expenses in connection with the separation from the Company of a non-Chief Executive Officer executive.
(5)Primarily consists of the impact of foreign exchange gains and losses.



Posted on

Apyx Medical Corporation Reports First Quarter 2026 Financial Results

  • Reported total revenue of $12.5 million in the first quarter of 2026 primarily driven by 36% growth in the Surgical Aesthetics segment
  • Raised total revenue guidance for FY2026 to a range of $59.0 million to $60.0 million
  • Management to host a conference call today at 8:00 a.m. ET

CLEARWATER, Fla., May 07, 2026 (GLOBE NEWSWIRE) — Apyx Medical Corporation (NASDAQ:APYX) (“Apyx Medical;” the “Company”), the leader in surgical aesthetics marketed and sold as Renuvion® and the AYON Body Contouring System™ (AYON), today reported financial results for its first quarter ended March 31, 2026.


Recent Financial and Operating Highlights:

  • Reported total revenue of $12.5 million in the first quarter of 2026, compared with $9.4 million in the same period last year.
    • Surgical Aesthetics revenue increased to $10.7 million in the first quarter of 2026, compared with $7.9 million in the first quarter of 2025, which was the result of domestic sales of AYON, Renuvion generators internationally, and single use handpieces worldwide.
    • OEM revenue was approximately $1.8 million in the first quarter of 2026, representing an increase of 13.8% from the same period last year.
  • Net loss attributable to stockholders of $2.1 million in the first quarter of 2026, compared with a net loss attributable to stockholders of $4.2 million in the first quarter of 2025.
  • Adjusted EBITDA loss was $0.3 million for the first quarter of 2026, compared with an Adjusted EBITDA loss of $2.4 million for the first quarter of 2025.
  • International sales exceeded expectations, driven in part by sales of the Apyx One Console and single‑use handpieces in South Korea following regulatory approval in December 2025. South Korea represents an attractive growth market, with the cosmetic surgery market estimated at $1.7 billion in 2024 and projected to exceed $3.9 billion by 2031.
  • Renuvion won the 2026 NewBeauty award for “Best Minimally Invasive Skin Tightener” for the second year in a row.

“Our first quarter results reflect continued execution against our commercial strategy, with strong revenue growth driven by adoption of AYON in the U.S., increasing demand for Renuvion internationally and an increase in handpieces worldwide,” said Charlie Goodwin, President and Chief Executive Officer. “During the quarter, our team delivered on several fronts, including growing Surgical Aesthetic sales including expansion of AYON and exceeding expectations in key international markets such as South Korea. Taken together, this performance reinforces our confidence in the business and supports our decision to raise our revenue outlook for the full year 2026.”

The following tables present revenue by reportable segment and geography:

    Three Months Ended          
    March 31,      
(In thousands)     2026     2025   $ Change   % Change  
Surgical Aesthetics   $ 10,734   $ 7,887   $ 2,847   36.1 %  
OEM     1,756     1,543     213   13.8 %  
Total   $ 12,490   $ 9,430   $ 3,060   32.4 %  
                   

    Three Months Ended          
    March 31,      
(In thousands)     2026     2025   $ Change   % Change  
Domestic   $ 8,112   $ 6,743   $ 1,369   20.3 %  
International     4,378     2,687     1,691   62.9 %  
Total   $ 12,490   $ 9,430   $ 3,060   32.4 %  
                   


First Quarter 2026 Results

:

Total revenue for the three months ended March 31, 2026 increased to $12.5 million, compared with $9.4 million in the prior year period. Surgical Aesthetics segment sales increased 36.1% or $2.8 million to approximately $10.7 million for the three months ended March 31, 2026, when compared with $7.9 million for the three months ended March 31, 2025. The Surgical Aesthetics sales increase was driven by sales of AYON, as the Company commenced the commercial launch in the third quarter of 2025, increased sales of generators internationally and increased volume of single-use handpieces in both domestic and international markets. These increases were partially offset by decreases in domestic sales of generators, including upgrades to the Apyx One Console, where the purchase of AYON was not part of the sale and upgrades to the Apyx One Console in international markets. OEM segment sales increased 13.8%, or approximately $0.2 million, to $1.8 million for the three months ended March 31, 2026, when compared with $1.5 million for the three months ended March 31, 2025. The increase in OEM sales was due to increases in sales volume to existing customers. While OEM segment sales increased for the three month period, with the increased focus on Surgical Aesthetics, it is expected that OEM segment revenue will decrease for the year and that this trend will continue over time.

Gross profit for the three months ended March 31, 2026, increased to $7.9 million, compared with $5.7 million for the same period in the prior year. Gross margin for the three months ended March 31, 2026, was 63.5%, compared to 60.1% for the same period in 2025. The increase in gross margin for the three months ended March 31, 2026 from the prior year period is primarily attributable to mix between the Company’s segments with Surgical Aesthetics comprising a higher percentage of total sales and product mix within the OEM segment. This was partially offset by geographic mix, with international sales comprising a higher percentage of total sales and tariffs that began effecting the Company in the second half of 2025.

Operating expenses were essentially flat at $8.8 million for the three-month periods ended March 31, 2026, compared with $8.7 million for the same period last year. The slight increase in operating expenses was driven by a $0.2 million increase in salaries and related costs and a $0.1 million increase in selling, general and administrative expenses. These increases were partially offset by a $0.1 million decrease in professional services and a $39,000 decrease in research and development.
Other expense, net was relatively flat at $1.1 million for each of the three months ended March 31, 2026 and 2025.

Net loss attributable to stockholders was $2.1 million, or $0.05 per share, for the three months ended March 31, 2026, compared with $4.2 million, or $0.10 per share, in the prior year period.

Adjusted EBITDA loss for the three months ended March 31, 2026 was $0.3 million as compared with an Adjusted EBITDA loss of $2.4 million for the three months ended March 31, 2025.

As of March 31, 2026, the Company had cash and cash equivalents of $31.1 million. Management believes based on its projections, including the uptake of the AYON platform, working capital management and its strict cost controls, the Company will yield cash through 2027.


Financial Guidance for Full Year 2026:

The Company announced an upward revision to select financial guidance targets for the year ending December 31, 2026:

  • Total revenue in the range of $59.0 million to $60.0 million, up from the previous guidance of $57.5 million to $58.5 million. This is compared with $52.8 million reported for the year ended December 31, 2025.
    • Total revenue guidance assumes:
      • Surgical Aesthetics revenue is expected to be in the range of $54.0 million to $55.0 million, up from the previous guidance of $53.0 million to $54.0 million. This is compared with approximately $45.3 million reported for the year ended December 31, 2025.
      • OEM revenue is expected to be approximately $5.0 million, up from $4.5 million. This is compared with approximately $7.5 million for the year ended December 31, 2025.
  • The Company continues to expect operating expenses of less than $45.0 million for the year ended December 31, 2026.


Conference Call Details

:

Management will host a conference call at 8:00 a.m. Eastern Time today, May 7th, to discuss the results of the first quarter ended March 31, 2026, followed by a question-and-answer session. To listen to the call by phone, interested parties may dial 800-717-1738 (or 646-307-1865 for international callers) and provide access code 81537. Participants should ask for the “Apyx Medical Corporation Call”. A live webcast of the call will be accessible via the following link: Apyx Medical Earnings Webcast and via the Investor Relations section of the Company’s website, where it will also be archived for future reference.

An archive of the webcast will be accessible approximately one hour after the live event ends on the Investor Relations section of the Company’s website (click here).


Investor Relations Contact

:

Jeremy Feffer, Managing Director, LifeSci Advisors
OP: 212-915-2568
[email protected]


About AYON Body Contouring System™:

AYON is a groundbreaking, surgeon-designed body contouring system that combines precision, versatility, and innovation in an all-in-one platform. It seamlessly integrates advanced fat removal technologies, Renuvion’s tissue contraction and electrosurgical capabilities, empowering surgeons to deliver the most comprehensive body contouring treatments for patients. With advanced features like LIFT Technology for real-time adjustments and Renuvion for enhanced tissue contraction, AYON sets a new standard in surgical care, streamlining procedures and maximizing patient outcomes. Backed by Apyx Medical’s expertise and evidence-based design, AYON delivers consistent, reliable performance and an unmatched return on investment. As the first of its kind, AYON is revolutionizing body contouring and shaping the future of aesthetic surgery.


About Apyx Medical Corporation

:

Apyx Medical Corporation is a surgical aesthetics company with a passion for elevating people’s lives through innovative products, including its Helium Plasma Platform Technology products marketed and sold as Renuvion® and the AYON Body Contouring System™ in the cosmetic surgery market and J-Plasma® in the hospital surgical market. Renuvion and J-Plasma offer surgeons a unique ability to provide controlled heat to tissue to achieve their desired results. The effectiveness of Renuvion and J-Plasma are supported by more than 90 clinical documents. The AYON Body Contouring System is an FDA-cleared, groundbreaking, surgeon-designed body contouring system that combines precision, versatility, and innovation in an all-in-one platform. It seamlessly integrates fat removal, closed loop contouring, electrosurgical capabilities and Renuvion for tissue contraction, empowering surgeons to deliver the most comprehensive body contouring treatments for patients. The Company also leverages its deep expertise and decades of experience in unique waveforms through OEM agreements with other medical device manufacturers. For further information about the Company and its products, please refer to the Apyx Medical Corporation website at www.ApyxMedical.com. 


Cautionary Statement on Forward-Looking Statements

:

Certain matters discussed in this release and oral statements made from time to time by representatives of the Company may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.

All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to, projections of net revenue, margins, expenses, net earnings, net earnings per share, or other financial items; projections or assumptions concerning the possible receipt by the Company of any regulatory approvals from any government agency or instrumentality including but not limited to the U.S. Food and Drug Administration (the “FDA”), supply chain disruptions, component shortages, manufacturing disruptions or logistics challenges; or macroeconomic or geopolitical matters and the impact of those matters on the Company’s financial performance.

Forward-looking statements and information are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company’s ability to control or predict. Important factors that may cause the Company’s actual results to differ materially and that could impact the Company and the statements contained in this release include but are not limited to risks, uncertainties and assumptions relating to the regulatory environment in which the Company is subject to, including the Company’s ability to gain requisite approvals for its products from the FDA and other governmental and regulatory bodies, both domestically and internationally; sudden or extreme volatility in commodity prices and availability, including supply chain disruptions; changes in general economic, business or demographic conditions or trends; changes in and effects of the geopolitical environment; liabilities and costs which the Company may incur from pending or threatened litigations, claims, disputes or investigations; and other risks that are described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and the Company’s other filings with the Securities and Exchange Commission. For forward-looking statements in this release, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.

 
APYX MEDICAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (In thousands, except per share data)
 
    Three Months Ended  
    March 31,  
      2026       2025    
Sales, net   $ 12,490     $ 9,430    
Cost of sales     4,565       3,765    
Gross profit     7,925       5,665    
Other costs and expenses:          
Research and development     765       804    
Professional services     1,242       1,365    
Salaries and related costs     3,253       3,081    
Selling, general and administrative     3,576       3,466    
Total other costs and expenses     8,836       8,716    
Loss from operations     (911 )     (3,051 )  
Interest income     244       304    
Interest expense     (1,369 )     (1,376 )  
Other income, net     36       —    
Total other expense, net     (1,089 )     (1,072 )  
Loss before income taxes     (2,000 )     (4,123 )  
Income tax expense     143       49    
Net loss     (2,143 )     (4,172 )  
Net loss attributable to non-controlling interest     (35 )     (22 )  
Net loss attributable to stockholders   $ (2,108 )   $ (4,150 )  
           
Loss per share:          
Basic and diluted   $ (0.05 )   $ (0.10 )  
                   

 
APYX MEDICAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
 
    March 31, 2026      
    (Unaudited)   December 31,
2025 		 
ASSETS          
Current assets:          
Cash and cash equivalents   $ 31,137     $ 31,740    
Trade accounts receivable, net of allowance of $1,014 and $1,020     12,755       16,776    
Inventories, net of provision for obsolescence of $1,110 and $1,207     9,536       8,602    
Prepaid expenses and other current assets     1,367       1,353    
Total current assets     54,795       58,471    
Property and equipment, net of accumulated depreciation and amortization of $4,344 and $4,293     2,235       2,371    
Operating lease right-of-use assets     4,092       4,218    
Finance lease right-of-use assets     22       28    
Other assets     1,881       1,752    
Total assets   $ 63,025     $ 66,840    
LIABILITIES AND EQUITY          
Current liabilities:          
Accounts payable   $ 2,629     $ 3,058    
Accrued expenses and other current liabilities     6,377       8,214    
Current portion of operating lease liabilities     420       407    
Current portion of finance lease liabilities     21       21    
Total current liabilities     9,447       11,700    
Long-term debt, net of debt discounts and issuance costs     35,087       34,849    
Long-term operating lease liabilities     3,926       4,051    
Long-term finance lease liabilities     7       12    
Long-term contract liabilities     1,131       1,050    
Other liabilities     339       347    
Total liabilities     49,937       52,009    
EQUITY          
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 0 issued and outstanding as of March 31, 2026 and December 31, 2025     —       —    
Common stock, $0.001 par value; 75,000,000 shares authorized; 41,868,436 issued and outstanding as of March 31, 2026, and 41,785,946 issued and outstanding as of December 31, 2025     42       42    
Additional paid-in capital     104,020       103,620    
Accumulated deficit     (91,230 )     (89,122 )  
Total stockholders’equity     12,832       14,540    
Non-controlling interest     256       291    
Total equity     13,088       14,831    
Total liabilities and equity   $ 63,025     $ 66,840    
           


Use of Non-GAAP Financial Measure:

The Company has presented the following non-GAAP financial measure in this press release: adjusted EBITDA. The Company defines adjusted EBITDA as its reported net loss attributable to stockholders (GAAP) plus income tax expense (benefit), interest income and expense, depreciation and amortization, stock-based compensation expense and other significant non-recurring items.

We present the following non-GAAP measure of adjusted EBITDA because we believe such measure is a useful indicator of our operating performance. Our management uses adjusted EBITDA principally as a measure of our operating performance and believes that this measure is useful to investors because it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We also believe that this measure is useful to our management and investors as a measure of comparative operating performance from period to period. The non-GAAP financial measure presented in this release should not be considered as a substitute for, or preferable to, the measures of financial performance prepared in accordance with GAAP.

 
APYX MEDICAL CORPORATION
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA
(Unaudited)
 
    Three Months Ended  
(In thousands)   March 31,  
      2026       2025    
Net loss attributable to stockholders   $ (2,108 )   $ (4,150 )  
Interest income     (244 )     (304 )  
Interest expense     1,369       1,376    
Income tax expense     143       49    
Depreciation and amortization     202       138    
Stock-based compensation     312       451    
Adjusted EBITDA   $ (326 )   $ (2,440 )  
           



Posted on

N-able Announces First Quarter 2026 Results

N-able Announces First Quarter 2026 Results

Delivers ARR Growth of 11% Year-Over-Year

Exceeds First Quarter Revenue and Adjusted EBITDA Guidance

Maintains Full-Year ARR Outlook of $581M to $586M

BURLINGTON, Mass.–(BUSINESS WIRE)–
N-able, Inc. (NYSE:NABL), a global cybersecurity company delivering business resilience, today reported results for its first quarter ended March 31, 2026.

“We delivered a strong first quarter, driven by improving retention and continued progress across the business,” said N-able president and CEO John Pagliuca. “As AI accelerates both the threat landscape and IT complexity, we believe cybersecurity is reaching an inflection point. Our platform is purpose‑built for this moment – embedded where customers already operate and increasingly automating work historically delivered through services – allowing our partners to scale more efficiently while strengthening their security posture.”

“Our first quarter performance reflected disciplined execution, continued upmarket traction, and expanding platform adoption,” added N-able CFO Tim O’Brien. “As we look ahead, we remain focused on strong execution while driving a balanced mix of growth and profit.”

First quarter 2026 financial highlights:

  • Total revenue of $133.7 million, representing 13.1% year-over-year growth, or 8.3% year-over-year growth on a constant currency basis.

  • Subscription revenue of $132.5 million, representing 13.4% year-over-year growth, or 8.6% year-over-year growth on a constant currency basis.

  • Total ARR of $548.0 million, representing 11.2% year-over-year growth, or 7.9% year-over-year growth on a constant currency basis.

  • GAAP gross margin of 76.2% and non-GAAP gross margin of 79.7%.

  • GAAP net loss of $0.6 million, or $0.00 per diluted share, and non-GAAP net income of $16.6 million, or $0.09 per diluted share.

  • Adjusted EBITDA of $36.7 million, representing an adjusted EBITDA margin of 27.5%.

For a reconciliation of our GAAP to non-GAAP results, please see the tables below.

Additional recent business highlights:

  • N-able announced a partnership with Manchester City as Official Cybersecurity Partner, protecting critical systems, data, and daily operations across the Club’s digital environment.

  • N-able published its 2026 State of the SOC report, informed by telemetry and frontline response data from the N-able SOC, highlighting the pace and evolution of today’s attack environment. The report demonstrates that escalating alert volumes, faster attack execution, and increasingly sophisticated adversaries are exposing the limits of legacy SOC approaches, accelerating the need for AI-driven operations that can keep pace.

  • N-able introduced its custom Model Context Protocol (MCP) server, securely connecting AI tools directly to live data inside N-able’s Unified Endpoint Management solutions. This allows teams to use AI platforms they already rely on, such as Claude, ChatGPT, or Copilot, to query data and take controlled action across systems in real-time.

  • N-able launched N-zo, an in-product AI assistant that delivers embedded guidance to help teams resolve issues faster. N-zo helps streamline daily operations, reduce tool hopping, and accelerate time to resolution, delivering up to 70% faster IT operations across certain tasks.

  • N‑able expanded Data Protection innovation with the introduction of Disaster Recovery as a Service (DRaaS) to accelerate time to recovery and reduce customer burden associated with managing backup infrastructure. N-able also announced enhanced Anomaly Detection capabilities, to help thwart identity-based attacks and flag indicators of compromise to backup environments.

Balance Sheet

As of March 31, 2026, total cash and cash equivalents were $117.8 million and total debt, net of debt issuance costs, was $393.1 million.

The financial results included in this press release are preliminary and pending final review by the company and its external auditors. Financial results will not be final until N-able files its quarterly report on Form 10-Q for the period. Information about N-able’s use of non-GAAP financial measures is provided below under “Non-GAAP Financial Measures.”

Financial Outlook

As of May 7, 2026, N-able is providing its financial outlook for the second quarter of 2026 and full-year 2026. The financial information below includes forward-looking non-GAAP financial information, including adjusted EBITDA. These non-GAAP financial measures exclude, among other items mentioned below, amortization of acquired intangible assets and developed technology, depreciation expense, income tax expense, interest expense, net, unrealized foreign currency (gains) losses, transaction related costs, spin-off costs, stock-based compensation expense and related employer-paid payroll taxes and restructuring and other costs. We have not reconciled our estimates of these non-GAAP financial measures to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, these excluded items in future periods. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these excluded items could be material to our results computed in accordance with GAAP in future periods. Our reported results provide reconciliations of non-GAAP financial measures to their nearest GAAP equivalents.

The financial outlook provided below reflects N-able’s expectations, as of the date of this release, regarding the impact on its business of changing foreign exchange rates and current macroeconomic dynamics.

Financial Outlook for the Second Quarter of 2026

N-able management currently expects to achieve the following results for the second quarter of 2026:

  • Total revenue in the range of $137.5 to $138.5 million, representing approximately 5% to 6% year-over-year growth on a reported basis and 4% on a constant currency basis.

  • Adjusted EBITDA in the range of $39.5 to $40.5 million, representing approximately 29% of total revenue.

Financial Outlook for Full-Year 2026

N-able management currently expects to achieve the following results for the full-year 2026:

  • Total ARR in the range of $581 to $586 million, representing approximately 8% to 9% year-over-year growth on a reported and constant currency basis.

  • Total revenue in the range of $554 to $559 million, representing approximately 8% to 9% year-over-year growth on a reported basis and 7% to 8% on a constant currency basis.

  • Adjusted EBITDA in the range of $167 to $171 million, representing approximately 30% to 31% of total revenue.

Additional details on the company’s outlook will be provided on the conference call.

Conference Call and Webcast

In conjunction with this announcement, N-able will host a conference call to discuss its financial results, business and business outlook at 8:30 a.m. ET on May 7, 2026. A live webcast of the call will be available on the N-able Investor Relations website at http://investors.n-able.com. A replay of the webcast will be available on a temporary basis shortly after the event on the N-able Investor Relations website.

Forward-Looking Statements

This press release contains “forward-looking” statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our financial outlook for the second quarter and full-year 2026, our product development and market opportunity, and the impact of AI and macroeconomic conditions on our business. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements that are not historical facts and may be signified by terms such as “aim,” “anticipate,” “believe,” “continue,” “expect,” “feel,” “intend,” “estimate,” “seek,” “plan,” “may,” “can,” “could,” “should,” “will,” “would” or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially and adversely different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the following: (a) the impact of adverse economic conditions; (b) our ability to sell subscriptions to new customers, to sell additional solutions to our existing customers and to increase the usage of our solutions by our existing customers, as well as our ability to generate and maintain customer loyalty; (c) our ability to sell our solutions through distributors and resellers; (d) any decline in our renewal or net retention rates; (e) our ability to successfully incorporate AI-powered features into our solutions, market and sell any AI-powered solutions we develop, garner increased market share projected for AI-powered solutions, and realize efficiencies from the internal use of AI tools, as well as other risks related to our use of AI; (f) any decline in our renewal or net retention rates; (g) the possibility that general economic, political, legal and regulatory conditions and uncertainty may cause information technology spending to be reduced or purchasing decisions to be delayed, including as a result of inflation, actions taken by central banks to counter inflation, rising interest rates, war and political unrest, military conflict (including between Russia and Ukraine and in the Middle East), terrorism, sanctions, trade or other issues in the U.S. and internationally, including increased tariffs or trade wars, or other geopolitical events globally, or that such factors may otherwise harm our business, financial condition or results of operations; (h) recent significant changes to U.S. trade policies and reciprocal trade measures enacted or threatened, which have led and may continue to lead to volatility and uncertainty, including increased market volatility and currency exchange rate fluctuations, which may also cause information technology spending to be reduced or purchasing decisions to be delayed; (i) any inability to generate significant volumes of high-quality sales leads from our digital marketing initiatives and convert such leads into new business at acceptable conversion rates; (j) any inability to successfully identify, complete and integrate acquisitions and manage our growth effectively; (k) any inability to resell third-party software or integrate third-party software into our solutions, or find suitable replacements for such third-party software; (l) risks associated with our international operations; (m) foreign exchange gains and losses related to expenses and sales denominated in currencies other than the functional currency of an associated entity; (n) risks that cyberattacks and other security incidents may result in compromises or breaches of our, our customers’, or their SMB and mid-market customers’ systems, the insertion of malicious code, malware, ransomware or other vulnerabilities into our, our customers’, or their SMB and mid-market customers’ environments, the exploitation of vulnerabilities in our, our customers’, or their SMB and mid-market customers’ security, the theft or misappropriation of our, our customers’, or their SMB and mid-market customers’ proprietary and confidential information, and interference with our, our customers’, or their SMB and mid-market customers’ operations, exposure to legal and other liabilities, higher customer and employee attrition and the loss of key personnel, negative impacts to our sales, renewals and upgrades and reputational harm and other serious negative consequences, any or all of which could materially harm our business; (o) our status as a controlled company; (p) our ability to attract and retain qualified employees and key personnel; (q) the timing and success of new product introductions and product upgrades by us or our competitors; (r) our ability to maintain or grow our brands, including the Adlumin brand; (s) our ability to protect and defend our intellectual property and not infringe upon others’ intellectual property; (t) the possibility that our operating income could fluctuate and may decline as a percentage of revenue as we make further expenditures to expand our operations in order to support growth in our business; (u) our indebtedness, including increased borrowing costs resulting from rising interest rates, potential restrictions on our operations and the impact of events of default; (v) our ability to operate our business internationally and increase sales of our solutions to our customers located outside of the United States; and (w) such other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission, including the risk factors described in N-able’s Annual Report on Form 10-K for the year ended December 31, 2025, that N-able filed with the SEC on February 26, 2026. All information provided in this press release is as of the date hereof and N-able undertakes no duty to update this information except as required by law.

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with GAAP, we use certain non-GAAP financial measures to clarify and enhance our understanding, and aid in the period-to-period comparison, of our performance. We believe that these non-GAAP financial measures provide supplemental information that is meaningful when assessing our operating performance because they exclude the impact of certain amounts that our management and board of directors do not consider part of core operating results when assessing our operational performance, allocating resources, preparing annual budgets and determining compensation. Accordingly, these non-GAAP financial measures may provide insight to investors into the motivation and decision-making of management in operating the business.

N-able also believes that these non-GAAP financial measures are used by investors and securities analysts to (a) compare and evaluate its performance from period to period and (b) compare its performance to those of its competitors. These non-GAAP measures exclude certain items that can vary substantially from company to company depending upon their financing and accounting methods, the book value of their assets, their capital structures and the method by which their assets were acquired.

As a result, these non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, their most comparable GAAP measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Certain items that are excluded from these non-GAAP financial measures can have a material impact on operating and net income.

N-able’s management and board of directors compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measure. Set forth in the tables below are the corresponding GAAP financial measures for each non-GAAP financial measure presented. Investors are encouraged to review the reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures that are set forth in the tables below.

Definitions of Non-GAAP and Other Metrics

Annual Recurring Revenue (ARR). We calculate ARR by annualizing the recurring revenue and related usage revenue inclusive of discounts, excluding the impacts of credits and reserves, recognized during the last day of the reporting period from both long-term and month-to-month subscriptions. We believe ARR enhances the understanding of our business performance and the growth of our relationships with our customers.

Non-GAAP Gross Margin, Non-GAAP Operating Income and Non-GAAP Operating Margin. We provide non-GAAP total cost of revenue, non-GAAP gross profit, non-GAAP operating expense and non-GAAP operating income and related non-GAAP gross and operating margins excluding such items as stock-based compensation expense and related employer-paid payroll taxes, amortization of acquired intangible assets, transaction related costs, spin-off costs and restructuring costs and other. We define non-GAAP gross and operating margins as non-GAAP gross profit and operating income, respectively, divided by total revenue. Management believes these measures are useful for the following reasons:

  • Stock-Based Compensation Expense and Related Employer-Paid Payroll Taxes. We provide non-GAAP information that excludes expenses related to stock-based compensation and related employer-paid payroll taxes associated with our employees’ participation in N-able’s stock-based incentive compensation plans. We believe that the exclusion of stock-based compensation expense provides for a better comparison of our operating results to prior periods and to our peer companies as the calculations of stock-based compensation vary from period to period and company to company due to different valuation methodologies, subjective assumptions and the variety of award types. Employer-paid payroll taxes on stock-based compensation is dependent on our stock price and the timing of the taxable events related to the equity awards, over which our management has little control, and does not necessarily correlate to the core operation of our business. Because of these unique characteristics of stock-based compensation and related employer-paid payroll taxes, management excludes these expenses when analyzing the organization’s business performance.
  • Amortization of Acquired Technologies and Intangible Assets. We provide non-GAAP information that excludes expenses related to purchased technologies and intangible assets associated with our acquisitions. We believe that eliminating this expense from our non-GAAP measures is useful to investors because the amortization of acquired technologies and intangible assets can be inconsistent in amount and frequency and is significantly impacted by the timing and magnitude of our acquisition transactions, which also vary in frequency from period to period. Accordingly, we analyze the performance of our operations in each period without regard to such expenses.
  • Transaction Related Costs. We exclude certain expense items resulting from proposed and completed acquisitions, dispositions and similar transactions, such as legal, accounting and advisory fees, changes in fair value of contingent consideration, costs related to integrating the acquired businesses, deferred compensation, severance and retention expense. We consider these adjustments, to some extent, to be unpredictable and dependent on a significant number of factors that are outside of our control. Furthermore, such proposed and completed transactions result in operating expenses that would not otherwise have been incurred by us in the normal course of our organic business operations. We believe that providing non-GAAP measures that exclude transaction related costs allows investors to better review and understand the historical and current results of our continuing operations and also facilitates comparisons to our historical results and results of peer companies with different transaction related activities, both with and without such adjustments.
  • Spin-off Costs. We exclude certain expense items resulting from the spin-off into a newly created and separately traded public company. These costs include legal, accounting and advisory fees, system implementation costs and other incremental costs incurred by us related to the separation from SolarWinds. The spin-off transaction results in operating expenses that would not otherwise have been incurred by us in the normal course of our organic business operations. We believe that providing non-GAAP measures that exclude these costs facilitates a more meaningful evaluation of our operating performance and comparisons to our past operating performance.
  • Restructuring Costs and Other. We provide non-GAAP information that excludes restructuring costs such as severance, certain employee relocation costs, and the estimated costs of exiting and terminating facility lease commitments, as they relate to our corporate restructuring and exit activities. These costs are inconsistent in amount and are significantly impacted by the timing and nature of these events. Therefore, although we may incur these types of expenses in the future, we believe that eliminating these costs for purposes of calculating the non-GAAP financial measures facilitates a more meaningful evaluation of our operating performance and comparisons to our past operating performance.

Non-GAAP Net Income and Non-GAAP Net Income Per Diluted Share.We believe that the use of non-GAAP net income and non-GAAP net income per diluted share is helpful to our investors to clarify and enhance their understanding of past performance and future prospects. Non-GAAP net income is calculated as net income excluding the adjustments to non-GAAP gross profit and non-GAAP operating income, interest on deferred consideration, and the income tax effect of the non-GAAP exclusions. We define non-GAAP net income per diluted share as non-GAAP net income divided by the weighted average diluted outstanding common shares.

Adjusted EBITDA and Adjusted EBITDA Margin.We regularly monitor adjusted EBITDA and adjusted EBITDA margin, as they are measures we use to assess our operating performance. We define adjusted EBITDA as net income or loss, excluding amortization of acquired intangible assets and developed technology, depreciation expense, income tax expense, interest expense, net, unrealized foreign currency losses (gains), transaction related costs, spin-off costs, stock-based compensation expense and related employer-paid payroll taxes and restructuring and other costs. We define adjusted EBITDA margin as adjusted EBITDA divided by total revenue. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations include: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our related party debt; adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and other companies, including companies in our industry, may calculate adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

Non-GAAP Revenue on a Constant Currency Basis. We provide non-GAAP revenue on a constant currency basis to provide a framework for assessing our performance excluding the effect of foreign currency rate fluctuations. To present this information, current period results for revenue contracts denominated in currencies other than U.S. Dollars are converted into U.S. Dollars at the average exchange rates in effect during the corresponding prior period presented. We believe that providing non-GAAP revenue on a constant currency basis facilitates the comparison of non-GAAP revenue to prior periods.

Unlevered Free Cash Flow.Unlevered free cash flow is a measure of our liquidity used by management to evaluate cash flow from operations, after the deduction of capital expenditures and prior to the impact of our capital structure, transaction related costs, restructuring costs, spin-off costs, employer-paid payroll taxes on stock awards and certain one-time items, that can be used by us for strategic opportunities and strengthening our balance sheet. However, given our debt obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses. Effective July 1, 2025, we have removed from our computation of unlevered free cash flow non-cash items generally relating to cash paid for transaction related costs, restructuring costs, spin-off costs, employer-paid payroll taxes on stock awards and other one-time items. Unlevered free cash flow for all prior periods presented has been revised to the current period computation.

About N-able

N-able protects businesses from evolving cyberthreats. Our AI-powered cybersecurity platform delivers business resilience to more than 500,000 organizations worldwide, leveraging advanced end-to-end capabilities, simplified workflows, market-leading integrations, and flexible deployment options to improve efficiency and drive critical security outcomes. Our partner-first approach pairs our technology with experts, training, and peer-led events that empower customers to be secure, resilient, and successful. n-able.com

© 2026 N-able, Inc. All rights reserved.

Category: Financial

 

N-able, Inc.

Consolidated Balance Sheets

(In thousands)

(Unaudited)
 

March 31,

 

December 31,

 

2026

 

2025

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

117,812

 

 

$

111,837

 

Accounts receivable, net of allowances of $4,232 and $4,059 as of March 31, 2026 and December 31, 2025, respectively

 

46,062

 

 

 

50,342

 

Income tax receivable

 

3,172

 

 

 

3,432

 

Recoverable taxes

 

6,126

 

 

 

9,807

 

Current contract assets

 

14,248

 

 

 

19,528

 

Prepaid and other current assets

 

23,556

 

 

 

21,494

 

Total current assets

 

210,976

 

 

 

216,440

 

Property and equipment, net

 

37,786

 

 

 

37,962

 

Operating lease right-of-use assets

 

35,113

 

 

 

28,666

 

Deferred taxes

 

4,262

 

 

 

4,412

 

Goodwill

 

1,014,665

 

 

 

1,024,300

 

Intangible assets, net

 

59,988

 

 

 

64,786

 

Other assets, net

 

32,526

 

 

 

33,340

 

Total assets

$

1,395,316

 

 

$

1,409,906

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

13,729

 

 

$

8,999

 

Accrued liabilities and other

 

40,298

 

 

 

55,756

 

Current contingent consideration

 

10,253

 

 

 

10,840

 

Current deferred consideration

 

62,363

 

 

 

60,720

 

Current operating lease liabilities

 

6,359

 

 

 

7,203

 

Income taxes payable

 

9,717

 

 

 

9,803

 

Current portion of deferred revenue

 

20,677

 

 

 

24,494

 

Current debt obligation

 

4,000

 

 

 

4,000

 

Total current liabilities

 

167,396

 

 

 

181,815

 

Long-term liabilities:

 

 

 

Deferred revenue, net of current portion

 

1,358

 

 

 

1,747

 

Non-current deferred taxes

 

1,724

 

 

 

1,847

 

Non-current operating lease liabilities

 

36,203

 

 

 

29,284

 

Long-term debt, net of current portion

 

389,099

 

 

 

389,873

 

Other long-term liabilities

 

705

 

 

 

685

 

Total liabilities

 

596,485

 

 

 

605,251

 

Commitments and contingencies (Note 11)

 

 

 

Stockholders’ equity:

 

 

 

Common stock, $0.001 par value: 550,000,000 shares authorized, 192,154,445 and 190,459,837 shares issued, and 188,378,290 and 186,683,682 shares outstanding as of March 31, 2026 and December 31, 2025, respectively

 

191

 

 

 

190

 

Preferred stock, $0.001 par value: 50,000,000 shares authorized and no shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

 

—

 

 

 

—

 

Treasury stock, at cost: 3,776,155 shares as of March 31, 2026 and December 31, 2025

 

(30,000

)

 

 

(30,000

)

Additional paid-in capital

 

754,422

 

 

 

746,599

 

Accumulated other comprehensive income

 

20,661

 

 

 

33,694

 

Retained earnings

 

53,557

 

 

 

54,172

 

Total stockholders’ equity

 

798,831

 

 

 

804,655

 

Total liabilities and stockholders’ equity

$

1,395,316

 

 

$

1,409,906

 
 

N-able, Inc.

Consolidated Statements of Operations

(In thousands, except per share information)

(Unaudited)
 

 

Three Months Ended March 31,

 

2026

 

2025

Revenue:

 

 

 

Subscription and other revenue

$

133,675

 

 

$

118,197

 

Cost of revenue:

 

 

 

Cost of revenue

 

27,510

 

 

 

23,511

 

Amortization of acquired technologies

 

4,241

 

 

 

4,167

 

Total cost of revenue

 

31,751

 

 

 

27,678

 

Gross profit

 

101,924

 

 

 

90,519

 

Operating expenses:

 

 

 

Sales and marketing

 

42,586

 

 

 

40,404

 

Research and development

 

26,138

 

 

 

23,884

 

General and administrative

 

20,247

 

 

 

23,908

 

Amortization of acquired intangibles

 

496

 

 

 

499

 

Total operating expenses

 

89,467

 

 

 

88,695

 

Operating income

 

12,457

 

 

 

1,824

 

Other expense, net:

 

 

 

Interest expense, net

 

(7,589

)

 

 

(7,071

)

Other (expense) income, net

 

(683

)

 

 

1,385

 

Total other expense, net

 

(8,272

)

 

 

(5,686

)

Income (loss) before income taxes

 

4,185

 

 

 

(3,862

)

Income tax expense

 

4,800

 

 

 

3,300

 

Net loss

$

(615

)

 

$

(7,162

)

Net loss per share:

 

 

 

Basic loss per share

$

(0.00

)

 

$

(0.04

)

Diluted loss per share

$

(0.00

)

 

$

(0.04

)

Weighted-average shares used to compute net loss per share:

 

 

 

Shares used in computation of basic loss per share:

 

187,546

 

 

 

188,234

 

Shares used in computation of diluted loss per share:

 

187,546

 

 

 

188,234

 
 

N-able, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)
 

 

Three Months Ended March 31,

 

2026

 

2025

Cash flows from operating activities

 

 

 

Net loss

$

(615

)

 

$

(7,162

)

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

 

 

 

Depreciation and amortization

 

11,356

 

 

 

10,417

 

Provision for doubtful accounts

 

173

 

 

 

60

 

Stock-based compensation expense

 

11,051

 

 

 

11,669

 

Deferred taxes

 

(13

)

 

 

20

 

Amortization of debt issuance costs and discounts

 

226

 

 

 

390

 

Loss (gain) on foreign currency exchange rates

 

1,146

 

 

 

(783

)

(Gain) loss on contingent consideration

 

(587

)

 

 

700

 

Deferred consideration expense

 

1,643

 

 

 

3,688

 

Loss (gain) on lease modification

 

11

 

 

 

(413

)

Other non-cash expenses

 

1

 

 

 

141

 

Changes in operating assets and liabilities, net of assets acquired and liabilities assumed in business combinations:

 

 

 

Accounts receivable

 

4,104

 

 

 

268

 

Income taxes receivable

 

243

 

 

 

(89

)

Recoverable taxes

 

3,601

 

 

 

12,420

 

Current contract assets

 

5,280

 

 

 

2,859

 

Operating lease right-of-use assets, net

 

(408

)

 

 

(365

)

Prepaid expenses and other current assets

 

(2,111

)

 

 

(6,698

)

Accounts payable

 

1,496

 

 

 

(2,710

)

Accrued liabilities and other

 

(14,956

)

 

 

(3,901

)

Income taxes payable

 

(1,100

)

 

 

349

 

Deferred revenue

 

(4,207

)

 

 

(558

)

Other long-term assets

 

1,117

 

 

 

(661

)

Other long-term liabilities

 

20

 

 

 

36

 

Net cash provided by operating activities

 

17,471

 

 

 

19,677

 

Cash flows from investing activities

 

 

 

Purchases of property and equipment

 

(1,687

)

 

 

(3,288

)

Purchases of intangible assets and other

 

(2,552

)

 

 

(2,788

)

Net cash used in investing activities

 

(4,239

)

 

 

(6,076

)

Cash flows from financing activities

 

 

 

Payments of tax withholding obligations related to restricted stock units

 

(4,604

)

 

 

(7,712

)

Exercise of stock options

 

3

 

 

 

2

 

Proceeds from issuance of common stock under employee stock purchase plan

 

1,177

 

 

 

1,296

 

Repayments of borrowings under Credit Agreement

 

(1,000

)

 

 

(875

)

Net cash used in financing activities

 

(4,424

)

 

 

(7,289

)

Effect of exchange rate changes on cash and cash equivalents

 

(2,833

)

 

 

2,582

 

Net increase in cash and cash equivalents

 

5,975

 

 

 

8,894

 

Cash and cash equivalents

 

 

 

Beginning of period

 

111,837

 

 

 

85,196

 

End of period

$

117,812

 

 

$

94,090

 

Supplemental disclosure of cash flow information

 

 

 

Cash paid for interest

$

6,856

 

 

$

6,447

 

Cash paid for income taxes

$

5,592

 

 

$

2,157

 

Supplemental disclosure of non-cash activities:

 

 

 

Change in purchases of property, equipment and leasehold improvements included in accounts payable and accrued expenses

$

3,020

 

 

$

29

 

Right-of-use assets obtained in exchange for operating lease liabilities

$

7,802

 

 

$

3,338

 
 

N-able, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(In thousands, except per share information)

(Unaudited)
 

 

Three Months Ended March 31,

 

2026

 

2025

 

 

 

 

GAAP cost of revenue

$

31,751

 

 

$

27,678

 

Stock-based compensation expense and related employer-paid payroll taxes

 

(433

)

 

 

(468

)

Amortization of acquired technologies

 

(4,241

)

 

 

(4,167

)

Transaction related costs

 

63

 

 

 

(147

)

Non-GAAP cost of revenue

$

27,140

 

 

$

22,896

 

 

 

 

 

GAAP gross profit

$

101,924

 

 

$

90,519

 

Stock-based compensation expense and related employer-paid payroll taxes

 

433

 

 

 

468

 

Amortization of acquired technologies

 

4,241

 

 

 

4,167

 

Transaction related costs

 

(63

)

 

 

147

 

Non-GAAP gross profit

$

106,535

 

 

$

95,301

 

 

 

 

 

GAAP sales and marketing expense

$

42,586

 

 

$

40,404

 

Stock-based compensation expense and related employer-paid payroll taxes

 

(4,172

)

 

 

(4,465

)

Transaction related costs

 

63

 

 

 

(951

)

Restructuring costs and other

 

(543

)

 

 

(160

)

Non-GAAP sales and marketing expense

$

37,934

 

 

$

34,828

 

 

 

 

 

GAAP research and development expense

$

26,138

 

 

$

23,884

 

Stock-based compensation expense and related employer-paid payroll taxes

 

(2,856

)

 

 

(2,975

)

Transaction related costs

 

—

 

 

 

(80

)

Restructuring costs and other

 

47

 

 

 

(122

)

Non-GAAP research and development expense

$

23,329

 

 

$

20,707

 

 

 

 

 

GAAP general and administrative expense

$

20,247

 

 

$

23,908

 

Stock-based compensation expense and related employer-paid payroll taxes

 

(4,301

)

 

 

(4,776

)

Transaction related costs

 

(305

)

 

 

(5,076

)

Restructuring costs and other

 

(18

)

 

 

420

 

Non-GAAP general and administrative expense

$

15,623

 

 

$

14,476

 

 

 

 

 

GAAP operating income

$

12,457

 

 

$

1,824

 

Amortization of acquired technologies

 

4,241

 

 

 

4,167

 

Amortization of acquired intangibles

 

496

 

 

 

499

 

Stock-based compensation expense and related employer-paid payroll taxes

 

11,762

 

 

 

12,684

 

Transaction related costs

 

179

 

 

 

6,254

 

Restructuring costs and other

 

514

 

 

 

(138

)

Non-GAAP operating income

$

29,649

 

 

$

25,290

 

GAAP operating margin

 

9.3

%

 

 

1.5

%

Non-GAAP operating margin

 

22.2

%

 

 

21.4

%

 

 

 

 

GAAP net loss

$

(615

)

 

$

(7,162

)

Amortization of acquired technologies

 

4,241

 

 

 

4,167

 

Amortization of acquired intangibles

 

496

 

 

 

499

 

Stock-based compensation expense and related employer-paid payroll taxes

 

11,762

 

 

 

12,684

 

Transaction related costs

 

179

 

 

 

6,254

 

Interest on deferred consideration

 

790

 

 

 

—

 

Restructuring costs and other

 

514

 

 

 

(138

)

Tax benefits associated with above adjustments (1)

 

(732

)

 

 

(683

)

Non-GAAP net income

$

16,635

 

 

$

15,621

 

 

 

 

 

GAAP diluted loss per share

$

(0.00

)

 

$

(0.04

)

Non-GAAP diluted income per share

$

0.09

 

 

$

0.08

 

 

 

 

 

Shares used in computation of GAAP diluted loss per share:

 

187,546

 

 

 

188,234

 

Shares used in computation of non-GAAP diluted income per share:

 

188,770

 

 

 

189,127

 

_________________

  

(1) The tax benefits associated with non-GAAP adjustments for the three months ended March 31, 2026 and 2025, respectively, is calculated utilizing the Company’s individual statutory tax rates for each impacted subsidiary.
 

N-able, Inc.

Reconciliation of GAAP Net Income to Adjusted EBITDA

(In thousands, except percentages)

(Unaudited)
 

 

Three Months Ended March 31,

 

2026

 

2025

 

 

 

 

Net loss

$

(615

)

 

$

(7,162

)

Amortization

 

6,564

 

 

 

6,178

 

Depreciation

 

4,792

 

 

 

4,239

 

Income tax expense

 

4,800

 

 

 

3,300

 

Interest expense, net

 

7,589

 

 

 

7,071

 

Unrealized foreign currency losses (gains)

 

1,146

 

 

 

(783

)

Transaction related costs

 

179

 

 

 

6,254

 

Stock-based compensation expense and related employer-paid payroll taxes

 

11,763

 

 

 

12,684

 

Restructuring costs and other

 

514

 

 

 

(138

)

Adjusted EBITDA

$

36,732

 

 

$

31,643

 

Adjusted EBITDA margin

 

27.5

%

 

 

26.8

%
 

N-able, Inc.

Reconciliation of GAAP Revenue to Non-GAAP Revenue on a Constant Currency Basis

(In thousands, except percentages)

(Unaudited)
 

 

Three Months Ended March 31,

 

2026

 

2025

 

Growth Rate

 

 

 

 

 

 

GAAP subscription revenue

$

132,459

 

 

$

116,849

 

13.4

%

Estimated foreign currency impact (1)

 

(5,612

)

 

 

—

 

(4.8

)

Non-GAAP subscription revenue on a constant currency basis

$

126,847

 

 

$

116,849

 

8.6

%

 

 

 

 

 

 

GAAP other revenue

$

1,216

 

 

$

1,348

 

(9.8

)%

Estimated foreign currency impact (1)

 

(30

)

 

 

—

 

(2.2

)

Non-GAAP other revenue on a constant currency basis

$

1,186

 

 

$

1,348

 

(12.0

)%

 

 

 

 

 

 

GAAP subscription and other revenue

$

133,675

 

 

$

118,197

 

13.1

%

Estimated foreign currency impact (1)

 

(5,642

)

 

 

—

 

(4.8

)

Non-GAAP subscription and other revenue on a constant currency basis

$

128,033

 

 

$

118,197

 

8.3

%

_________________

  

(1) The estimated foreign currency impact is calculated using the average foreign currency exchange rates in the comparable prior year monthly periods and applying those rates to foreign-denominated revenue in the corresponding monthly periods for the three months ended March 31, 2026 and 2025, respectively.
 

N-able, Inc.

Reconciliation of Unlevered Free Cash Flow

(In thousands, except percentages)

(Unaudited)
 

 

Three Months Ended March 31,

 

2026

 

2025

 

 

 

 

Net cash provided by operating activities

$

17,471

 

 

$

19,677

 

Purchases of property and equipment

 

(1,687

)

 

 

(3,288

)

Purchases of intangible assets

 

(2,552

)

 

 

(2,788

)

Free cash flow

 

13,232

 

 

 

13,601

 

Cash paid for interest, net of cash interest received

 

6,856

 

 

 

6,447

 

Cash paid for transaction related costs, restructuring costs, spin-off costs, employer-paid payroll taxes on stock awards and other one-time items (1)

 

1,764

 

 

 

5,042

 

Unlevered free cash flow (1)

$

21,852

 

 

$

25,090

 

_________________

  

(1) Effective July 1, 2025, we have removed from our computation of unlevered free cash flow non-cash items generally relating to cash paid for transaction related costs, restructuring costs, spin-off costs, employer-paid payroll taxes on stock awards and other one-time items. Unlevered free cash flow for all prior periods presented has been revised to the current period computation.

 

Investors:

Griffin Gyr

[email protected]

Media:

Kim Cecchini

Phone: 202.391.5205

[email protected]

KEYWORDS: Massachusetts United States North America

INDUSTRY KEYWORDS: Software Networks Internet Artificial Intelligence Data Management Professional Services Technology Security

MEDIA:

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Posted on

Datadog Announces First Quarter 2026 Financial Results

First quarter revenue grew 32% year-over-year to $1,006 million

Robust growth of larger customers, with about 4,550 $100k+ ARR customers, up from about 3,770 a year ago

Launched MCP Server, Bits AI Security Agent, GPU Monitoring, and Experiments for general availability

NEW YORK, May 07, 2026 (GLOBE NEWSWIRE) — Datadog, Inc. (NASDAQ:DDOG), the leading AI-powered observability and security platform, today announced financial results for its first quarter ended March 31, 2026.

“Datadog executed to a strong quarter, with 32% year-over-year revenue growth, $335 million in operating cash flow, and $289 million in free cash flow,” said Olivier Pomel, co-founder and CEO of Datadog. “We are helping customers of all sizes and industries deploy modern, cloud-based, AI-enabled solutions.”

Pomel added, “We’re using AI to build rapidly across the Datadog platform, and are excited to showcase our latest innovations at our DASH user conference in June.”

First Quarter 2026 Financial Highlights:

  • Revenue was $1,006 million, an increase of 32% year-over-year.
  • GAAP operating income was $7 million; GAAP operating margin was 1%.
  • Non-GAAP operating income was $223 million; non-GAAP operating margin was 22%.
  • GAAP net income per diluted share was $0.15; non-GAAP net income per diluted share was $0.60.
  • Operating cash flow was $335 million, with free cash flow of $289 million.
  • Cash, cash equivalents, and marketable securities were $4.8 billion as of March 31, 2026.

First Quarter & Recent Business Highlights:

  • As of March 31, 2026, we had about 4,550 customers with ARR of $100,000 or more, an increase of 21% from about 3,770 as of March 31, 2025.
  • Achieved FedRAMP High certification for Datadog for Government, one of the federal government’s most stringent cloud security and compliance standards—reinforcing Datadog’s commitment to serving highly sensitive federal environments and enabling U.S. government agencies and contractors to adopt modern observability for secure workloads.
  • Launched GPU Monitoring for generally availability, to help businesses optimize spend and performance as they scale AI projects—providing unified visibility across GPU fleet health, cost, and performance linked directly to the teams and workloads consuming those resources, enabling faster troubleshooting and cost savings.
  • Released the State of AI Engineering 2026 Report, which found that operational complexity—not model intelligence—is becoming the primary barrier to reliable AI at scale, with nearly 5% of AI model requests failing in production and close to 60% of those failures caused by capacity limits.
  • Launched Datadog Experiments, which embeds experimentation into observability to help teams design, measure, and optimize product A/B tests directly within the Datadog platform—pairing best-in-class statistical methods with real-time observability guardrails so companies can ship with confidence.
  • Delivered Bits AI Security Analyst to general availability as part of Datadog’s Cloud SIEM, enabling security teams to reduce threat investigation time by up to 98% by autonomously analyzing alerts with the depth and expertise of a senior SOC analyst at machine scale and speed.
  • Announced the general availability of Datadog’s MCP Server, which provides AI coding agents and IDEs with secure, real-time access to unified observability data—enabling faster debugging, safer automation, and governed AI operations at scale.
  • Appointed Dominic Phillips to Datadog’s Board of Directors. Phillips brings more than two decades of financial leadership in the technology sector, including his current role as Executive Vice President and Chief Financial Officer at Samsara and previous positions at ServiceNow and Morgan Stanley.
  • Published the 2026 State of DevSecOps Report, which found that 87% of organizations are running software with known, exploitable vulnerabilities—highlighting a broader industry shift as security risk increasingly moves upstream into the software supply chain.
  • Entered into a strategic partnership with Sakana AI, a next-generation AI research lab, to collaborate on research, product innovation, and go-to-market initiatives focused on enterprise AI adoption—initially supporting large enterprise customers in Japan before expanding globally.
  • Opened registration for DASH 2026, Datadog’s ninth annual global conference for builders, engineers, security leaders, and technology decision-makers exploring how observability and security are evolving in an era of increasingly complex, AI-driven systems. The conference will take place June 9-10 at the North Javits Center in New York City.

Second Quarter and Full Year 2026 Outlook:

Based on information as of today, May 7, 2026, Datadog is providing the following guidance:

  • Second Quarter 2026 Outlook:
    • Revenue between $1.07 billion and $1.08 billion.
    • Non-GAAP operating income between $225 million and $235 million.
    • Non-GAAP net income per share between $0.57 and $0.59, assuming approximately 369 million weighted average diluted shares outstanding.
  • Full Year 2026 Outlook:
    • Revenue between $4.30 billion and $4.34 billion.
    • Non-GAAP operating income between $940 million and $980 million.
    • Non-GAAP net income per share between $2.36 and $2.44, assuming approximately 372 million weighted average diluted shares outstanding.

Datadog has not reconciled its expectations as to non-GAAP operating income, or as to non-GAAP net income per share, to their most directly comparable GAAP measure as a result of uncertainty regarding, and the potential variability of, reconciling items such as stock-based compensation and employer payroll taxes on equity incentive plans. Accordingly, reconciliation is not available without unreasonable effort, although it is important to note that these factors could be material to Datadog’s results computed in accordance with GAAP.

Co
nference Call Details:

  • W
    hat: Datadog financial results for the first quarter of 2026 and outlook for the second quarter and the full year 2026
  • When: May 7, 2026 at 8:00 A.M. Eastern Time (5:00 A.M. Pacific Time)
  • Dial in: To access the call in the U.S., please register here. Callers are encouraged to dial into the call 10 to 15 minutes prior to the start to prevent any delay in joining.
  • Webcast: https://investors.datadoghq.com (live and replay)
  • Replay: A replay of the call will be archived on the investor relations website

About Datadog

Datadog is the leading observability and security platform for the AI era, providing businesses with unified visibility across the technology stack to manage complexity at scale. It brings applications, infrastructure, data, models, and security into one place, using AI to detect and resolve issues before they impact customers. Trusted globally by Fortune 500 companies and high-growth AI leaders, Datadog enables businesses to move faster with clarity and confidence.

Forward-Looking Statements

This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Datadog’s strategy, product and platform capabilities, the growth in and ability to capitalize on long-term market opportunities including the pace and scope of cloud migration, digital transformation and AI deployment, gross margins, operating margins including with respect to sales and marketing, research and development expenses, net interest and other income, cash taxes, capital expenditures and capitalized software, and Datadog’s future financial performance, including its outlook for the second quarter and the full year 2026 and related notes and assumptions. These forward-looking statements are based on Datadog’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Datadog’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.

The risks and uncertainties referred to above include, but are not limited to (1) our recent rapid growth may not be indicative of our future growth; (2) our history of operating losses; (3) our limited operating history; (4) our dependence on existing customers purchasing additional subscriptions and products from us and renewing their subscriptions; (5) our ability to attract new customers; (6) our ability to effectively develop and expand our sales and marketing capabilities; (7) risk of a security breach; (8) risk of interruptions or performance problems associated with our products and platform capabilities; (9) our ability to adapt and respond to rapidly changing technology or customer needs; (10) the competitive markets in which we participate; (11) risks associated with successfully managing our growth; (12) risks associated with changing laws, regulations, and contractual obligations related to data privacy and security and (13) general market, political, economic, and business conditions including concerns about trade policies, tariffs, reduced economic growth and associated decreases in information technology spending. These risks and uncertainties are more fully described in our filings with the Securities and Exchange Commission (SEC), including in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 18, 2026. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 and other filings and reports that we may file from time to time with the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.

About Non-GAAP Financial Measures

Datadog discloses the following non-GAAP financial measures in this release and the earnings call referencing this press release: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing and general and administrative), non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, non-GAAP net income (loss) per basic share, free cash flow and free cash flow margin. Datadog uses each of these non-GAAP financial measures internally to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate Datadog’s financial performance. Datadog believes they are useful to investors, as a supplement to GAAP measures, in evaluating its operational performance, as further discussed below. Datadog’s non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Datadog’s reported financial results.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

Datadog defines non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing and general and administrative), non-GAAP operating income (loss), non-GAAP operating margin and non-GAAP net income (loss) as the respective GAAP balances, adjusted for, as applicable: (1) stock-based compensation expense; (2) the amortization of acquired intangibles; (3) employer payroll taxes on employee stock transactions; (4) M&A transaction costs; (5) amortization of issuance costs; and (6) an assumed provision for income taxes based on our long-term projected tax rate. Non-GAAP financial measures prior to April 1, 2025 have not been adjusted for M&A transaction costs, as such costs were not material to our results of operations in such prior periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including the rapidly evolving global tax environment, significant changes in Datadog’s geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate. Datadog defines free cash flow as net cash provided by operating activities, minus capital expenditures and minus capitalized software development costs, if any. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.

Management believes these non-GAAP financial measures are useful to investors and others in assessing Datadog’s operating performance due to the following factors:

Stock-based compensation. Datadog utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.

Amortization of acquired intangibles. Datadog views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of acquired intangibles is an expense that is not typically affected by operations during any particular period.

Employer payroll taxes on employee stock transactions. Datadog excludes employer payroll tax expense on equity incentive plans as these expenses are tied to the exercise or vesting of underlying equity awards and the price of Datadog’s common stock at the time of vesting or exercise. As a result, these taxes may vary in any particular period independent of the financial and operating performance of Datadog’s business.

M&A transaction costs. Datadog views acquisition-related expenses, such as transaction costs, as costs that are not necessarily reflective of operational performance during a period. In particular, Datadog believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.

Amortization of issuance costs. In June 2020 and December 2024, Datadog issued $747.5 million of 0.125% convertible senior notes due 2025 and $1.0 billion of 0% convertible senior notes due 2029, respectively. Debt issuance costs, which reduce the carrying value of the convertible debt instrument, are amortized as interest expense over the term. The expense for the amortization of debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.

Additionally, Datadog’s management believes that the non-GAAP financial measure free cash flow is meaningful to investors because it is a measure of liquidity that provides useful information in understanding and evaluating the strength of our liquidity and future ability to generate cash that can be used for strategic opportunities or investing in our business. Free cash flow represents net cash provided by operating activities, reduced by capital expenditures and capitalized software development costs, if any. The reduction of capital expenditures and amounts capitalized for software development facilitates comparisons of Datadog’s liquidity on a period-to-period basis and excludes items that management does not consider to be indicative of our liquidity.

Operating Metrics

Datadog’s number of customers with ARR of $100,000 or more is based on the ARR of each customer, as of the last month of the quarter.

We define the number of customers as the number of accounts with a unique account identifier for which we have an active subscription in the period indicated. Users of our free trials or tier are not included in our customer count. A single organization with multiple divisions, segments or subsidiaries is generally counted as a single customer. However, in some cases where they have separate billing terms, we may count separate divisions, segments or subsidiaries as multiple customers.

We define ARR as the annualized revenue run-rate of subscription agreements from all customers at a point in time. We calculate ARR by taking the monthly recurring revenue, or MRR, and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts, additional usage, usage from subscriptions for a committed contractual amount of usage that is delivered as used, and monthly subscriptions. ARR and MRR should be viewed independently of revenue, and do not represent our revenue under GAAP on a monthly or annualized basis, as they are operating metrics that can be impacted by contract start and end dates and renewal rates. ARR and MRR are not intended to be replacements or forecasts of revenue.

Datadog, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data; unaudited)
     
    Three Months Ended

March 31,
      2026       2025  
Revenue   $ 1,006,426     $ 761,553  
Cost of revenue (1)(2)(3)     209,228       157,628  
Gross profit     797,198       603,925  
Operating expenses:        
Research and development (1)(3)     435,298       341,061  
Sales and marketing (1)(2)(3)     279,823       214,291  
General and administrative (1)(3)(4)     74,750       60,993  
Total operating expenses     789,871       616,345  
Operating income (loss)     7,327       (12,420 )
Other income:        
Interest expense (5)     (3,119 )     (2,963 )
Interest income and other income, net     54,722       47,179  
Other income, net     51,603       44,216  
Income before provision for income taxes     58,930       31,796  
Provision for income taxes     6,356       7,154  
Net income   $ 52,574     $ 24,642  
Net income per share – basic   $ 0.15     $ 0.07  
Net income per share – diluted   $ 0.15     $ 0.07  
Weighted average shares used in calculating net income per share:        
Basic     353,272       343,097  
Diluted     364,731       363,078  

(1) Includes stock-based compensation expense as follows:            
Cost of revenue   $ 8,558     $ 6,651  
Research and development     123,671       105,735  
Sales and marketing     42,298       34,125  
General and administrative     22,314       17,754  
Total   $ 196,841     $ 164,265  

(2) Includes amortization of acquired intangibles as follows:            
Cost of revenue   $ 1,282     $ 894  
Sales and marketing     358       203  
Total   $ 1,640     $ 1,097  

(3) Includes employer payroll taxes on employee stock transactions as follows:  
Cost of revenue   $ 188     $ 186  
Research and development     11,276       9,582  
Sales and marketing     1,895       1,570  
General and administrative     3,635       2,225  
Total   $ 16,994     $ 13,563  

(4) Includes M&A transaction costs as follows:            
General and administrative   $ 695     $ —  
Total   $ 695     $ —  

(5) Includes amortization of issuance costs as follows:            
Interest expense   $ 1,047     $ 1,819  
Total   $ 1,047     $ 1,819  
                 

Datadog, Inc.
Condensed Consolidated Balance Sheets
(In thousands; unaudited)
         
    March 31,

2026 		  December 31,

2025
ASSETS        
CURRENT ASSETS:        
Cash and cash equivalents   $ 426,360     $ 401,305
Marketable securities     4,332,257       4,073,531
Accounts receivable, net of allowance for credit losses of $21,188 and $19,292 as of March 31, 2026 and December 31, 2025, respectively     680,434       741,262
Deferred contract costs, current     81,687       76,022
Prepaid expenses and other current assets     104,468       90,160
Total current assets     5,625,206       5,382,280
Property and equipment, net     378,944       338,093
Operating lease assets     213,260       214,674
Goodwill     540,543       530,568
Intangible assets, net     14,929       14,968
Deferred contract costs, non-current     136,264       126,708
Other assets     42,866       36,553
TOTAL ASSETS   $ 6,952,012     $ 6,643,844
LIABILITIES AND STOCKHOLDERS’ EQUITY        
CURRENT LIABILITIES:        
Accounts payable   $ 174,801     $ 148,791
Accrued expenses and other current liabilities     208,549       209,595
Operating lease liabilities, current     41,401       39,369
Deferred revenue, current     1,231,152       1,193,646
Total current liabilities     1,655,903       1,591,401
Operating lease liabilities, non-current     259,155       256,187
Convertible senior notes, net, non-current     984,496       983,449
Deferred revenue, non-current     50,918       68,711
Other liabilities     13,318       11,890
Total liabilities     2,963,790       2,911,638
STOCKHOLDERS’ EQUITY:        
Common stock     3       3
Additional paid-in capital     3,801,272       3,579,010
Accumulated other comprehensive (loss) income     (3,416 )     15,404
Retained earnings     190,363       137,789
Total stockholders’ equity     3,988,222       3,732,206
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 6,952,012     $ 6,643,844
         

Datadog, Inc.
Condensed Consolidated Statements of Cash Flow
(In thousands; unaudited)
     
    Three Months Ended

March 31,
      2026       2025  
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net income   $ 52,574     $ 24,642  
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation and amortization     17,923       11,255  
Accretion of discounts on marketable securities     (11,880 )     (10,370 )
Amortization of issuance costs     1,047       1,819  
Amortization of deferred contract costs     20,325       14,853  
Stock-based compensation, net of amounts capitalized     196,841       164,265  
Non-cash lease expense     9,073       8,389  
Allowance for credit losses on accounts receivable     4,953       4,520  
Loss on disposal of property and equipment     1,134       (145 )
Changes in operating assets and liabilities:        
Accounts receivable, net     55,874       104,227  
Deferred contract costs     (35,545 )     (21,519 )
Prepaid expenses and other current assets     (14,445 )     (10,263 )
Other assets     (522 )     (1,217 )
Accounts payable     21,500       (10,712 )
Accrued expenses and other liabilities     (3,877 )     5,648  
Deferred revenue     19,647       (13,851 )
Net cash provided by operating activities     334,622       271,541  
CASH FLOWS FROM INVESTING ACTIVITIES:        
Purchases of marketable securities     (1,304,965 )     (970,302 )
Maturities of marketable securities     1,046,415       555,938  
Proceeds from sale of marketable securities     (57 )     (76 )
Purchases of property and equipment     (11,358 )     (8,748 )
Capitalized software development costs     (34,173 )     (18,402 )
Cash paid for acquisition of businesses; net of cash acquired     (10,660 )     (1,818 )
Net cash used in investing activities     (314,798 )     (443,408 )
CASH FLOWS FROM FINANCING ACTIVITIES:        
Proceeds from exercise of stock options     9,711       1,673  
Repayments of 2025 Convertible Senior Notes     —       (20 )
Net cash provided by financing activities     9,711       1,653  
         
Effect of exchange rate changes on cash and cash equivalents     (4,480 )     3,085  
         
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS     25,055       (167,129 )
CASH AND CASH EQUIVALENTS—Beginning of period     401,305       1,246,983  
CASH AND CASH EQUIVALENTS—End of period   $ 426,360     $ 1,079,854  
                 

Datadog, Inc.
Reconciliation from GAAP to Non-GAAP Results
(In thousands; unaudited)
     
    Three Months Ended

March 31,
      2026       2025  

Reconciliation of gross profit and gross margin
 		       
GAAP gross profit   $ 797,198     $ 603,925  
Plus: Stock-based compensation expense     8,558       6,651  
Plus: Amortization of acquired intangibles     1,282       894  
Plus: Employer payroll taxes on employee stock transactions     188       186  
Non-GAAP gross profit   $ 807,226     $ 611,656  
GAAP gross margin     79 %     79 %
Non-GAAP gross margin     80 %     80 %
         

Reconciliation of operating expenses
 		       
GAAP research and development   $ 435,298     $ 341,061  
Less: Stock-based compensation expense     (123,671 )     (105,735 )
Less: Employer payroll taxes on employee stock transactions     (11,276 )     (9,582 )
Non-GAAP research and development   $ 300,351     $ 225,744  
         
GAAP sales and marketing   $ 279,823     $ 214,291  
Less: Stock-based compensation expense     (42,298 )     (34,125 )
Less: Amortization of acquired intangibles     (358 )     (203 )
Less: Employer payroll taxes on employee stock transactions     (1,895 )     (1,570 )
Non-GAAP sales and marketing   $ 235,272     $ 178,393  
         
GAAP general and administrative   $ 74,750     $ 60,993  
Less: Stock-based compensation expense     (22,314 )     (17,754 )
Less: Employer payroll taxes on employee stock transactions     (3,635 )     (2,225 )
Less: M&A transaction costs (1)     (695 )     —  
Non-GAAP general and administrative   $ 48,106     $ 41,014  
         

Reconciliation of operating (loss) income and operating margin
 		       
GAAP operating income (loss)   $ 7,327     $ (12,420 )
Plus: Stock-based compensation expense     196,841       164,265  
Plus: Amortization of acquired intangibles     1,640       1,097  
Plus: Employer payroll taxes on employee stock transactions     16,994       13,563  
Plus: M&A transaction costs (1)     695       —  
Non-GAAP operating income   $ 223,497     $ 166,505  
GAAP operating margin     1 %   (2)%
Non-GAAP operating margin     22 %     22 %

______________

1) The three months ended March 31, 2026 were adjusted for M&A transaction costs, and these adjustments were applied prospectively, as these costs were not material to the consolidated results of operations in the prior periods.
   

Datadog, Inc.
Reconciliation from GAAP to Non-GAAP Results
(In thousands, except per share data; unaudited)
     
    Three Months Ended

March 31,
      2026     2025

Reconciliation of net income
 		       
GAAP net income   $         52,574   $         24,642
Plus: Stock-based compensation expense             196,841             164,265
Plus: Amortization of acquired intangibles             1,640             1,097
Plus: Employer payroll taxes on employee stock transactions             16,994             13,563
Plus: M&A transaction costs (1)             695             —
Plus: Amortization of issuance costs             1,047             1,819
Non-GAAP net income before non-GAAP tax adjustments   $         269,791   $         205,386
Income tax effects and adjustments (2)             51,635             37,479
Non-GAAP net income after non-GAAP tax adjustments   $         218,156   $         167,907
Net income per share before non-GAAP tax adjustments – basic   $         0.76   $         0.60
Net income per share before non-GAAP tax adjustments – diluted   $         0.74   $         0.57
         
Net income per share after non-GAAP tax adjustments – basic   $         0.62   $         0.49
Net income per share after non-GAAP tax adjustments – diluted   $         0.60   $         0.46
         
Shares used in non-GAAP net income per share calculations:        
Basic             353,272             343,097
Diluted             364,731             363,078

______________

1) The three months ended March 31, 2026 were adjusted for M&A transaction costs, and these adjustments were applied prospectively, as these costs were not material to the consolidated results of operations in the prior periods.
2) Non-GAAP financial information for the periods shown are adjusted for an assumed provision for income taxes based on our long-term projected tax rate of 21%. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities.
   

Datadog, Inc.
Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow
(In thousands; unaudited)
     
    Three Months Ended

March 31,
      2026       2025  
Net cash provided by operating activities   $ 334,622     $ 271,541  
Less: Purchases of property and equipment     (11,358 )     (8,748 )
Less: Capitalized software development costs     (34,173 )     (18,402 )
Free cash flow   $ 289,091     $ 244,391  
Free cash flow margin     29 %     32 %

Contact Information

Yuka Broderick
Datadog Investor Relations
[email protected]

Dan Haggerty
Datadog Public Relations
[email protected]

Datadog is a registered trademark of Datadog, Inc.
All product and company names herein may be trademarks of their registered owners.



Posted on

REX American Resources Corporation to Participate in Energy Infrastructure Council’s Energy Infrastructure CEO & Investor Conference

REX American Resources Corporation to Participate in Energy Infrastructure Council’s Energy Infrastructure CEO & Investor Conference

DAYTON, Ohio–(BUSINESS WIRE)–
REX American Resources Corporation (“REX”) (NYSE: REX) today announced that the company plans to participate in the following upcoming investor event:

  • Energy Infrastructure Council’s 23rd Annual Energy Infrastructure CEO & Investor Conference, May 18-20, Aventura, FL

Members of REX management are scheduled to meet with investors and participate in a fireside chat at the conference.

To access REX’s latest presentation, please visit the Events & Presentations section of REX’s investor relations website at www.investors.rexamerican.com.

About REX American Resources Corporation

REX American Resources Corporation has interests in six ethanol production facilities, which in aggregate have production capacity totaling approximately 730 million gallons per year. REX’s effective ownership of annual volumes is approximately 300 million gallons. Further information about REX is available at www.rexamerican.com.

Forward-Looking Statements

This news announcement contains or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements can be identified by use of forward-looking terminology such as “may,” “expect,” “believe,” “estimate,” “anticipate” or “continue” or the negative thereof or other variations thereon or comparable terminology. Readers are cautioned that there are risks and uncertainties that could cause actual events or results to differ materially from those referred to in such forward-looking statements. These risks and uncertainties include the risk factors set forth from time to time in the Company’s filings with the Securities and Exchange Commission and include among other things: the effect of pandemics such as COVID-19 on the Company’s business operations, including impacts on supplies, demand, personnel and other factors, the impact of legislative and regulatory changes, the price volatility and availability of corn, distillers grains, ethanol, distillers corn oil, commodity market risk, gasoline and natural gas, ethanol plants operating efficiently and according to forecasts and projections, logistical interruptions, success in permitting and developing the planned carbon sequestration facility near the One Earth Energy ethanol plant, changes in the international, national or regional economies, the impact of inflation, the ability to attract employees, weather, results of income tax audits, changes in income tax laws or regulations, the impact of U.S. foreign trade policy, changes in foreign currency exchange rates and the effects of terrorism or acts of war. The Company does not intend to update publicly any forward-looking statements except as required by law.

Investor Contacts

Douglas Bruggeman

Chief Financial Officer

Caldwell Bailey

ICR, Inc.

[email protected]

KEYWORDS: Florida Ohio United States North America

INDUSTRY KEYWORDS: Oil/Gas Alternative Energy Energy Other Energy Utilities

MEDIA:

Posted on

Cushman & Wakefield Reports Financial Results for the First Quarter 2026

Cushman & Wakefield Reports Financial Results for the First Quarter 2026

Reported highest first quarter revenue in company history

Robust Leasing revenue growth of 19% (17% in local currency)

Sustained momentum in Services with 9% (7% in local currency) growth

NEW YORK–(BUSINESS WIRE)–
Cushman & Wakefield Ltd. (NYSE: CWK) today reported financial results for the first quarter of 2026.

First Quarter Results:

  • Revenue of $2.5 billion for the first quarter of 2026 increased 11% (9% in local currency) from the first quarter of 2025.

    • Services revenue increased 9% (7% in local currency), reflecting sustained momentum across all segments, led by higher facilities management and project management revenue.

    • Leasing revenue increased 19% (17% in local currency), driven primarily by growth in the Americas across all deal sizes, with continued strength in office and industrial leasing, including data centers.

    • Capital markets revenue increased 15% (14% in local currency), marking our sixth consecutive quarter of double-digit growth. Americas Capital markets, up 22% (22% in local currency), saw solid performance in the office sector.

    • Valuation and other revenue increased 9% (4% in local currency).

  • Net loss was $12.6 million for the first quarter of 2026 compared to net income of $1.9 million for the first quarter of 2025, a decline of $14.5 million. Diluted loss per share was $0.05 for the first quarter of 2026, down $0.06, compared to diluted earnings per share of $0.01 for the first quarter of 2025.

    • Recognized a non-cash settlement loss of $16.6 million related to a pension buy-out arrangement in the United Kingdom (“U.K.”) and a non-cash servicing liability of $11.8 million related to the amendment of our revolving accounts receivables securitization program (the “A/R Securitization”).

    • Adjusted EBITDA of $111.3 million increased $15.1 million or 16% (15% in local currency) from the first quarter of 2025.

    • Adjusted net income of $34.7 million increased $14.2 million or 69% from the first quarter of 2025.

    • Adjusted diluted earnings per share of $0.15 was up $0.06 or 67% from the first quarter of 2025.

  • Liquidity as of March 31, 2026 was $1.6 billion, consisting of availability on the company’s undrawn revolving credit facility of $1.0 billion and cash and cash equivalents of $0.6 billion.

“Our first quarter results reflect a strong start to 2026 as we continue to execute toward the long-term targets we introduced at our 2025 Investor Day in December. We reported the highest first quarter revenue in company history, with continued momentum across all of our service lines. We are driving operating leverage as we scale the platform and driving consistent value through capital structure improvements, leading to 67% Adjusted earnings per share growth in the quarter,” said Michelle MacKay, Chief Executive Officer of Cushman & Wakefield. “As clients increasingly turn to integrated, multi-service partners, we are capturing opportunities in the market through our ability to lead through market transformation. Our strategy is delivering results and we are focused on generating durable, long-term growth for our shareholders.”

Consolidated Results (unaudited)
 

 

Three Months Ended March 31,

(in millions, except per share data)

2026

2025

% Change in

USD

% Change in

Local Currency(4)

Revenue:

 

 

 

 

Services

$

1,742.7

 

$

1,603.6

 

9

%

7

%

Leasing

 

497.7

 

 

418.4

 

19

%

17

%

Capital markets

 

181.6

 

 

157.9

 

15

%

14

%

Valuation and other

 

113.8

 

 

104.7

 

9

%

4

%

Total revenue

$

2,535.8

 

$

2,284.6

 

11

%

9

%

Costs and expenses:

 

 

 

 

Gross contract costs(1)

$

1,089.7

 

$

979.7

 

11

%

10

%

Cost of services provided to clients

 

1,025.4

 

 

920.6

 

11

%

8

%

Total costs of services

 

2,115.1

 

 

1,900.3

 

11

%

9

%

Operating, administrative and other

 

336.7

 

 

305.8

 

10

%

8

%

Depreciation and amortization

 

25.3

 

 

26.7

 

(5

)%

(8

)%

Restructuring, impairment and related charges

 

—

 

 

6.5

 

(100

)%

(100

)%

Total costs and expenses

 

2,477.1

 

 

2,239.3

 

11

%

9

%

Operating income

 

58.7

 

 

45.3

 

30

%

31

%

Interest expense, net of interest income

 

(49.2

)

 

(52.3

)

(6

)%

(7

)%

(Loss) earnings from equity method investments

 

(4.1

)

 

11.1

 

n.m.

n.m.

Other (expense) income, net

 

(15.0

)

 

0.9

 

n.m.

n.m.

(Loss) earnings before income taxes

 

(9.6

)

 

5.0

 

n.m.

n.m.

Provision for income taxes

 

3.0

 

 

3.1

 

(3

)%

(3

)%

Net (loss) income

$

(12.6

)

$

1.9

 

n.m.

n.m.

Adjusted EBITDA(2)

$

111.3

 

$

96.2

 

16

%

15

%

 

 

 

 

 

Adjusted net income(2)

$

34.7

 

$

20.5

 

69

%

 

 

 

 

 

 

Weighted average shares outstanding, basic

 

232.8

 

 

230.4

 

 

 

Weighted average shares outstanding, diluted(3)

 

235.5

 

 

232.3

 

 

 

(Loss) earnings per share, basic

$

(0.05

)

$

0.01

 

 

 

(Loss) earnings per share, diluted(3)

$

(0.05

)

$

0.01

 

 

 

Adjusted earnings per share, diluted(2)

$

0.15

 

$

0.09

 

 

 
 

n.m. not meaningful
(1) Gross contract costs represents reimbursed client costs including client-dedicated labor, subcontractor costs and third-party consumables. These costs are presented on a gross basis in total costs and expenses (with the corresponding fees in revenue) and primarily relate to Services.

(2) See the end of this release for reconciliations of (i) Net (loss) income to Adjusted EBITDA and (ii) Net (loss) income to Adjusted net income and for explanations of the calculation of Adjusted earnings per share, diluted. See also the definition of, and a description of the purposes for which management uses, these non-GAAP financial measures under the “Use of Non-GAAP Financial Measures” section in this press release.

(3) For all periods with a U.S. Generally Accepted Accounting Principles (“GAAP”) net loss, weighted average shares outstanding, diluted is only used to calculate Adjusted earnings per share, diluted. For all periods with a GAAP net loss, all potentially dilutive shares would be anti-dilutive; therefore, both basic and diluted loss per share are calculated using weighted average shares outstanding, basic.

(4) In order to assist our investors and improve comparability of results, we present the period-over-period changes in our results of operations and certain non-GAAP financial measures in “local” currency. The local currency figures represent the period-over-period change assuming no movement in foreign exchange rates from the prior period. We believe that this provides our management and investors with another important view of comparability and trends in the underlying operating business.

First Quarter Results (unaudited)

Revenue

Revenue of $2.5 billion increased $251.2 million or 11% compared to the three months ended March 31, 2025, primarily driven by Services and Leasing revenue growth of 9% and 19%, respectively. Services revenue was strong across all segments, led by higher facilities management revenue, which increased approximately $78.0 million including the expansion of existing client mandates, and higher project management in EMEA and APAC, which increased approximately $26.0 million and $14.0 million, respectively. Leasing revenue increased principally due to growth in the Americas across all deal sizes, with continued strength in office and industrial leasing, including data centers. Capital markets revenue increased 15%, resulting from solid performance in the Americas, with particular strength in the office sector, as healthy fundamentals continue to support a resilient transaction environment. This continued momentum in Capital markets also reflects our ongoing investments in hiring top talent and strengthening our platform. Valuation and other revenue also increased 9%.

Costs of services

Costs of services of $2.1 billion increased $214.8 million or 11% compared to the three months ended March 31, 2025. Gross contract costs increased $110.0 million or 11%, principally driven by an increase in reimbursed client-dedicated labor costs of approximately $31.0 million, and third-party consumables and sub-contractor costs of approximately $77.0 million. Cost of services provided to clients increased $104.8 million or 11%, primarily due to an increase in employment costs of approximately $93.0 million, including higher commissions associated with higher brokerage revenue and higher salaries as a result of higher Services revenue.

Operating, administrative and other

Operating, administrative and other expenses of $336.7 million increased $30.9 million or 10% compared to the three months ended March 31, 2025, primarily driven by an increase in employment costs of approximately $15.0 million, largely due to higher salaries, as well as higher technology costs and cost inflation. In addition, the company recorded a non-cash servicing liability of $11.8 million related to the amendment of the A/R Securitization in March 2026.

Restructuring, impairment and related charges

The company did not incur any Restructuring, impairment and related charges during the first quarter of 2026. In the first quarter of 2025, Restructuring, impairment and related charges of $6.5 million was related to an impairment loss on real estate investments.

(Loss) earnings from equity method investments

Loss from equity method investments was $4.1 million for the three months ended March 31, 2026 compared to earnings from equity method investments of $11.1 million for the three months ended March 31, 2025. The $15.2 million decline was primarily due to a decrease of $11.2 million in earnings recognized from our equity method investment in Cushman Wakefield Greystone LLC (the “Greystone JV”) driven by changes in mix of mortgage loan origination volumes compared to the first quarter of 2025, contributing to a lower value of MSRs, and higher provisions for credit losses for mortgage loans due to expected losses on specific loans and higher risk-sharing obligations. In the first quarter of 2026, the Greystone JV recorded a non-cash provision for loan losses of $8.6 million, of which the company recorded $3.4 million based on its 40% equity interest which was included within (Loss) earnings from equity method investments. Changes in expectations and forecasts may materially impact the provision for loan losses in the future. In addition, the company recognized lower earnings from our equity method investment in CWVS Holding Limited (the “Onewo JV”), which declined $3.5 million compared to the first quarter of 2025 due to higher provisions for credit losses.

Other (expense) income, net

Other expense, net was $15.0 million for the three months ended March 31, 2026 compared to other income, net of $0.9 million for the three months ended March 31, 2025. The $15.9 million decline was principally resulting from a non-cash settlement loss of $16.6 million related to a pension buy-out arrangement in the U.K.

Provision for income taxes

Provision for income taxes for the first quarter of 2026 was $3.0 million on a loss before income taxes of $9.6 million. For the three months ended March 31, 2025, the provision for income taxes was $3.1 million on earnings before income taxes of $5.0 million. Income tax expense remained relatively flat compared to the first quarter of 2025, as the tax impact from lower earnings before income taxes was largely offset by the higher impact from discrete tax adjustments recorded in the first quarter of 2026, including higher withholding taxes and interest accruals for uncertain tax positions recognized in prior periods.

Net (loss) income and Adjusted EBITDA

Net loss was $12.6 million for the three months ended March 31, 2026 compared to net income of $1.9 million for the three months ended March 31, 2025. The $14.5 million decline in net income was principally driven by the pension buy-out settlement loss, A/R Securitization servicing liability, lower earnings recognized from our equity method investments and cost inflation. These unfavorable trends were partially offset by growth in all of our service lines.

Adjusted EBITDA of $111.3 million increased $15.1 million or 16% compared to the three months ended March 31, 2025, attributable to the same factors impacting Net loss above, with the exception of the pension buy-out settlement loss, A/R Securitization servicing liability and the non-operating items related to the Greystone JV.

Balance Sheet

Liquidity as of March 31, 2026 was $1.6 billion, consisting of availability on the company’s undrawn revolving credit facility of $1.0 billion and cash and cash equivalents of $0.6 billion.

As of March 31, 2026, the company had outstanding term loans of $1.7 billion, senior secured notes totaling $1.0 billion and cash and cash equivalents of $0.6 billion, resulting in net debt of $2.1 billion. See the “Use of Non-GAAP Financial Measures” section in this press release for the definition of, and a description of the purposes for which management uses, this non-GAAP financial measure.

On May 4, 2026, the company announced its election to partially redeem $100.0 million of its 6.750% senior secured notes due May 2028 (the “2028 Notes”). Holders of the 2028 Notes were notified that the partial redemption will be completed on May 15, 2026 (the “Redemption Date”). The redemption price will be 100% of the principal amount of the 2028 Notes to be redeemed, plus accrued and unpaid interest up to, but excluding, the Redemption Date.

Conference Call

The company’s First Quarter 2026 Earnings Conference Call will be held today, May 7, 2026, at 9:00 a.m. Eastern Time. A webcast, along with an associated slide presentation, will be accessible through the Investor Relations section of the company’s website at https://ir.cushmanwakefield.com.

The direct dial-in number for the conference call is 1-877-407-0784 for U.S. callers and 1-201-689-8560 for international callers. An audio replay of the call will be available approximately two hours after the conference call by accessing the company’s Investor Relations website at https://ir.cushmanwakefield.com. A transcript of the call will also be available on the company’s Investor Relations website at https://ir.cushmanwakefield.com.

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for occupiers and investors with approximately 53,000 employees in over 350 offices and nearly 60 countries. In 2025, the firm reported revenue of $10.3 billion across its core service lines of Services, Leasing, Capital markets, and Valuation and other. Built around the belief that Better never settles, the firm receives numerous industry and business accolades for its award-winning culture. For additional information, visit www.cushmanwakefield.com.

Cautionary Note Regarding Forward-Looking Statements

All statements in this release other than historical facts are forward-looking statements, which rely on a number of estimates, projections and assumptions concerning future events. Such statements are also subject to a number of uncertainties and factors outside the control of the company. Such factors include, but are not limited to, disruptions in general macroeconomic conditions and global and regional demand for commercial real estate; risks associated with sociopolitical polarization and changes in political landscapes; social, geopolitical and economic risks associated with its international operations; foreign currency volatility; the seasonality of significant portions of its revenue and cash flow; its ability to recruit and retain qualified revenue-producing advisors and senior management; its ability to maintain and execute its information technology strategies; the increasing use of artificial intelligence (“AI”) technologies in its operations and client service offerings and the inadequate deployment and governance of these AI technologies; interruption or failure of its information technology, communications systems or data services; its vulnerability to potential breaches in security or other threats related to its information systems; its ability to comply with cybersecurity, AI governance and data privacy laws and regulations and other confidentiality obligations; the concentration of business with specific corporate clients; its ability to preserve, grow and leverage the value of its brand; its ability to compete globally, regionally and locally and its ability to cross-sell its services; the extent to which infrastructure disruptions may affect its ability to provide its services; the failure of its mergers, acquisitions and investments to perform as expected or the lack of future acquisition opportunities; the potential impairment of its goodwill or equity method investments; its ability to comply with new and existing laws, regulations or licensing requirements; changes in tax legislation or tax rates and its ability to make correct determinations in complex and varied tax regimes; incremental tax risk associated with Bermuda’s limited network of international treaties; the failure of third parties performing on its behalf to comply with contract, regulatory or legal requirements; risks related to climate change and with respect to other environmental conditions; restrictions imposed on the company by the agreements governing its indebtedness; its amount of indebtedness and the potential adverse impact on its available cash flow and the operation of its business; its ability to incur more indebtedness; litigation and regulatory risks; the fact that the rights of its shareholders may be limited or otherwise differ in certain respects from the rights afforded to shareholders of a U.S. corporation; and risks related to its capital allocation strategy including current intentions to not pay cash dividends. Should any of the company’s estimates, projections and assumptions or these other uncertainties and factors materialize in ways that it did not expect, there is no guarantee of future performance and the actual results could differ materially from the forward-looking statements in this release, including the possibility that recipients may lose a material portion of the amounts invested. While the company believes the assumptions underlying these forward-looking statements are reasonable under current circumstances, such assumptions are inherently uncertain and subjective and past or projected performance is not necessarily indicative of future results. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information contained in this release, and nothing shall be relied upon as a promise or representation as to the performance of any investment. You are cautioned not to place undue reliance on such forward-looking statements or other information in this release and should rely on your own assessment of an investment or a transaction. Any estimates or projections as to events that may occur in the future are based upon the best and current judgment of the company as actual results may vary from the projections and such variations may be material. Any forward-looking statements speak only as of the date of this release and the company expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether as a result of events or circumstances, new information, future developments or otherwise after the date of this release, except as required by applicable securities laws. Additional information concerning factors that may influence the company’s results is discussed under “Risk Factors” in Part I, Item 1A of its most recently filed Annual Report on Form 10-K and in its other periodic reports filed with the SEC.

The company routinely posts important information about its business on its Investors Relations website at https://ir.cushmanwakefield.com. The company uses its website as a means of disclosing material, nonpublic information and for complying with its disclosure obligations under Regulation FD. Investors should monitor the company’s Investor Relations website in addition to following the company’s press releases, filings with the SEC, public conference calls and webcasts. The company does not incorporate the contents of any website into this or any other report it files with the SEC.

Cushman & Wakefield Ltd.

Condensed Consolidated Statements of Operations

(unaudited)
 

 

Three Months Ended March 31,

(in millions, except per share data)

2026

2025

Revenue

$

2,535.8

 

$

2,284.6

 

Costs and expenses:

 

 

Costs of services (exclusive of depreciation and amortization)

 

2,115.1

 

 

1,900.3

 

Operating, administrative and other

 

336.7

 

 

305.8

 

Depreciation and amortization

 

25.3

 

 

26.7

 

Restructuring, impairment and related charges

 

—

 

 

6.5

 

Total costs and expenses

 

2,477.1

 

 

2,239.3

 

Operating income

 

58.7

 

 

45.3

 

Interest expense, net of interest income

 

(49.2

)

 

(52.3

)

(Loss) earnings from equity method investments

 

(4.1

)

 

11.1

 

Other (expense) income, net

 

(15.0

)

 

0.9

 

(Loss) earnings before income taxes

 

(9.6

)

 

5.0

 

Provision for income taxes

 

3.0

 

 

3.1

 

Net (loss) income

$

(12.6

)

$

1.9

 

 

 

 

Basic (loss) earnings per share:

 

 

(Loss) earnings per share attributable to common shareholders, basic

$

(0.05

)

$

0.01

 

Weighted average shares outstanding for basic (loss) earnings per share

 

232.8

 

 

230.4

 

Diluted (loss) earnings per share:

 

 

(Loss) earnings per share attributable to common shareholders, diluted

$

(0.05

)

$

0.01

 

Weighted average shares outstanding for diluted (loss) earnings per share

 

232.8

 

 

232.3

 

Cushman & Wakefield Ltd.

Condensed Consolidated Balance Sheets
 

 

As of

(in millions, except share data)

March 31, 2026

December 31, 2025

Assets

(unaudited)

 

Current assets:

 

 

Cash and cash equivalents

$

600.6

 

$

784.2

 

Trade and other receivables, net of allowance of $95.3 and $93.2, as of March 31, 2026 and December 31, 2025, respectively

 

1,447.1

 

 

1,515.5

 

Income taxes receivable

 

82.9

 

 

52.3

 

Short-term contract assets, net

 

324.8

 

 

301.4

 

Prepaid expenses and other current assets

 

292.5

 

 

189.7

 

Total current assets

 

2,747.9

 

 

2,843.1

 

Property and equipment, net

 

134.2

 

 

132.9

 

Goodwill

 

2,059.2

 

 

2,058.3

 

Intangible assets, net

 

645.1

 

 

654.7

 

Equity method investments

 

529.2

 

 

536.9

 

Deferred tax assets

 

217.3

 

 

149.0

 

Non-current operating lease assets

 

373.3

 

 

277.2

 

Other non-current assets

 

941.9

 

 

1,024.5

 

Total assets

$

7,648.1

 

$

7,676.6

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

Current liabilities:

 

 

Short-term borrowings and current portion of long-term debt

$

129.8

 

$

124.9

 

Accounts payable and accrued expenses

 

1,159.3

 

 

1,225.0

 

Accrued compensation

 

871.4

 

 

1,021.5

 

Income taxes payable

 

86.5

 

 

29.0

 

Other current liabilities

 

179.2

 

 

191.4

 

Total current liabilities

 

2,426.2

 

 

2,591.8

 

Long-term debt, net

 

2,621.0

 

 

2,624.9

 

Deferred tax liabilities

 

38.4

 

 

13.8

 

Non-current operating lease liabilities

 

369.2

 

 

246.6

 

Other non-current liabilities

 

240.6

 

 

243.7

 

Total liabilities

 

5,695.4

 

 

5,720.8

 

 

 

 

Shareholders’ equity:

 

 

Common shares, par value $0.10 per share, 800,000,000 shares authorized; 234,287,353 and 231,699,585 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

 

23.4

 

 

23.2

 

Additional paid-in capital

 

3,033.4

 

 

3,038.4

 

Accumulated deficit

 

(910.3

)

 

(897.7

)

Accumulated other comprehensive loss

 

(194.2

)

 

(208.6

)

Total equity attributable to the Company

 

1,952.3

 

 

1,955.3

 

Non-controlling interests

 

0.4

 

 

0.5

 

Total equity

 

1,952.7

 

 

1,955.8

 

Total liabilities and shareholders’ equity

$

7,648.1

 

$

7,676.6

 

Cushman & Wakefield Ltd.

Condensed Consolidated Statements of Cash Flows

(unaudited)
 

 

Three Months Ended March 31,

(in millions)

2026

2025

Cash flows from operating activities

 

 

Net (loss) income

$

(12.6

)

$

1.9

 

Reconciliation of net (loss) income to net cash used in operating activities:

 

 

Depreciation and amortization

 

25.3

 

 

26.7

 

Impairment charges

 

—

 

 

6.5

 

Unrealized foreign exchange loss

 

2.5

 

 

0.2

 

Stock-based compensation

 

16.3

 

 

16.0

 

Lease amortization

 

22.2

 

 

21.7

 

Amortization of debt issuance costs

 

2.0

 

 

2.0

 

Loss (earnings) from equity method investments, net of distributions received

 

10.1

 

 

(11.1

)

Change in deferred taxes

 

(49.6

)

 

34.7

 

Provision for loss on receivables and other assets

 

4.8

 

 

2.8

 

Unrealized loss on investments, net

 

1.1

 

 

0.7

 

Other operating activities, net

 

25.4

 

 

(8.4

)

Changes in assets and liabilities:

 

 

Trade and other receivables

 

54.5

 

 

90.0

 

Income taxes payable, net of income taxes receivable

 

28.4

 

 

(47.5

)

Short-term contract assets and Prepaid expenses and other current assets

 

(108.3

)

 

(74.4

)

Other non-current assets

 

(38.6

)

 

(39.1

)

Accounts payable and accrued expenses

 

(63.5

)

 

(28.0

)

Accrued compensation

 

(147.1

)

 

(148.9

)

Other current and non-current liabilities

 

(16.4

)

 

(7.8

)

Net cash used in operating activities

 

(243.5

)

 

(162.0

)

Cash flows from investing activities

 

 

Payment for property and equipment

 

(12.2

)

 

(4.6

)

Acquisition of business, net of cash acquired

 

—

 

 

(4.9

)

Investments in equity securities

 

(1.1

)

 

(7.1

)

Return of beneficial interest in a securitization

 

(120.0

)

 

(100.0

)

Collection on beneficial interest in a securitization

 

225.0

 

 

130.0

 

Other investing activities, net

 

2.4

 

 

7.2

 

Net cash provided by investing activities

 

94.1

 

 

20.6

 

Cash flows from financing activities

 

 

Shares repurchased for payment of employee taxes on stock awards

 

(22.2

)

 

(10.2

)

Payment of deferred and contingent consideration

 

(0.2

)

 

(0.1

)

Repayment of borrowings

 

—

 

 

(25.0

)

Payment of finance lease liabilities

 

(5.7

)

 

(6.4

)

Other financing activities, net

 

—

 

 

0.4

 

Net cash used in financing activities

 

(28.1

)

 

(41.3

)

 

 

 

Change in cash, cash equivalents and restricted cash

 

(177.5

)

 

(182.7

)

Cash, cash equivalents and restricted cash, beginning of the period

 

803.5

 

 

814.6

 

Effects of exchange rate fluctuations on cash, cash equivalents and restricted cash

 

(6.5

)

 

8.3

 

Cash, cash equivalents and restricted cash, end of the period

$

619.5

 

$

640.2

 

Segment Results

The following tables summarize the results of operations for the company’s segments for the three months ended March 31, 2026 and 2025.

Americas Results
 

 

Three Months Ended March 31,

(in millions) (unaudited)

2026

2025

% Change in

USD

% Change in

Local Currency

Revenue:

 

 

 

 

Services

$

1,233.5

 

$

1,186.7

 

4

%

4

%

Leasing

 

414.0

 

 

346.3

 

20

%

19

%

Capital markets

 

141.9

 

 

115.9

 

22

%

22

%

Valuation and other

 

39.6

 

 

39.4

 

1

%

(1

)%

Total revenue

$

1,829.0

 

$

1,688.3

 

8

%

8

%

Segment expenses:

 

 

 

 

Gross contract costs(1)

$

855.4

 

$

808.6

 

6

%

6

%

Cost of services provided to clients

 

677.0

 

 

601.7

 

13

%

12

%

Operating, administrative and other

 

218.6

 

 

211.5

 

3

%

3

%

Segment expenses

 

1,751.0

 

 

1,621.8

 

8

%

8

%

Add: Other segment items(2)

 

18.3

 

 

11.1

 

65

%

63

%

Adjusted EBITDA

$

96.3

 

$

77.6

 

24

%

23

%

(1)

Gross contract costs represents reimbursed client costs including client-dedicated labor, subcontractor costs and third-party consumables. These costs are presented on a gross basis in total costs and expenses (with the corresponding fees in revenue) and primarily relate to Services.

(2)

Other segment items include (loss) earnings from equity method investments, as well as certain non-GAAP adjustments for unusual, non-recurring or non-operating items used to calculate Adjusted EBITDA.

EMEA Results
 

 

Three Months Ended March 31,

(in millions) (unaudited)

2026

2025

% Change in

USD

% Change in

Local Currency

Revenue:

 

 

 

 

Services

$

153.2

 

$

105.0

 

46

%

33

%

Leasing

 

47.3

 

 

39.4

 

20

%

10

%

Capital markets

 

19.8

 

 

18.0

 

10

%

1

%

Valuation and other

 

49.8

 

 

42.6

 

17

%

7

%

Total revenue

$

270.1

 

$

205.0

 

32

%

21

%

Segment expenses:

 

 

 

 

Gross contract costs(1)

$

53.0

 

$

33.9

 

56

%

43

%

Cost of services provided to clients

 

146.9

 

 

116.0

 

27

%

15

%

Operating, administrative and other

 

65.3

 

 

52.2

 

25

%

16

%

Segment expenses

 

265.2

 

 

202.1

 

31

%

20

%

Add: Other segment items(2)

 

3.9

 

 

0.8

 

n.m.

n.m.

Adjusted EBITDA

$

8.8

 

$

3.7

 

n.m.

n.m.
 

n.m. not meaningful

(1)

Gross contract costs represents reimbursed client costs including client-dedicated labor, subcontractor costs and third-party consumables. These costs are presented on a gross basis in total costs and expenses (with the corresponding fees in revenue) and primarily relate to Services.

(2)

Other segment items include (loss) earnings from equity method investments, as well as certain non-GAAP adjustments for unusual, non-recurring or non-operating items used to calculate Adjusted EBITDA.

APAC Results

 

Three Months Ended March 31,

(in millions) (unaudited)

2026

2025

% Change in

USD

% Change in

Local Currency

Revenue:

 

 

 

 

Services

$

356.0

 

$

311.9

 

14

%

10

%

Leasing

 

36.4

 

 

32.7

 

11

%

9

%

Capital markets

 

19.9

 

 

24.0

 

(17

)%

(15

)%

Valuation and other

 

24.4

 

 

22.7

 

7

%

3

%

Total revenue

$

436.7

 

$

391.3

 

12

%

8

%

Segment expenses:

 

 

 

 

Gross contract costs(1)

$

181.3

 

$

137.2

 

32

%

28

%

Cost of services provided to clients

 

201.5

 

 

202.9

 

(1

)%

(5

)%

Operating, administrative and other

 

52.8

 

 

42.1

 

25

%

24

%

Segment expenses

 

435.6

 

 

382.2

 

14

%

10

%

Add: Other segment items(2)

 

5.1

 

 

5.8

 

(12

)%

(11

)%

Adjusted EBITDA

$

6.2

 

$

14.9

 

(58

)%

(56

)%

(1)

Gross contract costs represents reimbursed client costs including client-dedicated labor, subcontractor costs and third-party consumables. These costs are presented on a gross basis in total costs and expenses (with the corresponding fees in revenue) and primarily relate to Services.

(2)

Other segment items include (loss) earnings from equity method investments, as well as certain non-GAAP adjustments for unusual, non-recurring or non-operating items used to calculate Adjusted EBITDA.

Cushman & Wakefield Ltd.

Use of Non-GAAP Financial Measures

The company uses the following measures, which are considered “non-GAAP financial measures” under SEC guidelines:

  1. Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”);

  2. Adjusted net income and Adjusted earnings per share;

  3. Free cash flow;

  4. Local currency; and

  5. Net debt.

Management principally uses these non-GAAP financial measures to evaluate operating performance, develop budgets and forecasts, improve comparability of results and assist our investors in analyzing the underlying performance of our business. These measures are not measurements recognized under GAAP. When analyzing our operating results, investors should use these measures in addition to, but not as an alternative for, the most directly comparable financial results calculated and presented in accordance with GAAP. Because the company’s calculation of these non-GAAP financial measures may differ from other companies, our presentation of these measures may not be comparable to similarly titled measures of other companies.

The company believes that these measures provide a more complete understanding of ongoing operations, enhance comparability of current results to prior periods and may be useful for investors to analyze our financial performance. The measures eliminate the impact of certain items that may obscure trends in the underlying performance of our business. The company believes that they are useful to investors for the additional purposes described below.

Adjusted EBITDA: We have determined Adjusted EBITDA to be our primary measure of segment profitability. We believe that investors find this measure useful in comparing our operating performance to that of other companies in our industry because these calculations generally eliminate unrealized loss (gain) on investments, net; impairment of investments; acquisition related costs; A/R Securitization servicing liability, fees and amortization; pension buy-out settlement loss; non-operating items related to the Greystone JV; and other non-recurring items. Adjusted EBITDA also excludes the effects of financings, income taxes and the non-cash accounting effects of depreciation and intangible asset amortization.

Adjusted net income and Adjusted earnings per share: Management also assesses the profitability of the business using Adjusted net income. We believe that investors find this measure useful in comparing our profitability to that of other companies in our industry because this calculation generally eliminates depreciation and amortization related to merger; unrealized loss (gain) on investments, net; impairment of investments; acquisition related costs; A/R Securitization servicing liability, fees and amortization; pension buy-out settlement loss; non-operating items related to the Greystone JV; and other non-recurring items. Tax impact of adjusted items reflects management’s estimated annual effective tax rate. The company also uses Adjusted earnings per share (“EPS”) as a component when measuring operating performance. Management defines Adjusted EPS as Adjusted net income divided by diluted weighted average shares outstanding.

Free cash flow: Free cash flow is a financial performance metric that is calculated as net cash provided by (used in) operating activities, less capital expenditures (reflected as Payment for property and equipment in the investing activities section of the Condensed Consolidated Statements of Cash Flows).

Local currency: In discussing our results, we refer to percentage changes in local currency. These metrics are calculated by holding foreign currency exchange rates constant in year-over-year comparisons. Management believes that this methodology provides investors with greater visibility into the performance of our business excluding the effect of foreign currency rate fluctuations.

Net debt: Net debt is used as a measure of our liquidity and is calculated as total debt minus cash and cash equivalents.

Adjustments to GAAP Financial Measures Used to Calculate Non-GAAP Financial Measures

During the periods presented in this press release, we had the following adjustments:

Unrealized loss on investments, net represents net unrealized gains and losses on real estate investments.

Impairment of investments reflects certain one-time impairment charges related to investments, equity method investments or other assets.

Acquisition related costsincludes certain direct costs incurred in connection with acquiring businesses.

Servicing liability, fees and amortization reflects the additional non-cash servicing liability accrued in connection with the A/R Securitization amendment in March 2026, net of amortization, along with related fees incurred to execute the amendment. The liability will be amortized through March 2029.

Pension buy-out settlement loss represents a non-cash settlement charge related to a pension buy-out arrangement in the U.K.

Non-operating items related to the Greystone JV reflects certain non-operating activity presented within (loss) earnings from equity method investments related to the Greystone JV for (i) gains recognized from the retention of mortgage servicing rights (“MSRs”) upon the origination and sale of mortgage loans, (ii) increases or decreases in the fair value of the MSRs and (iii) estimated provisions for credit losses related to mortgage loans. This activity is specific to the Greystone JV rather than all of the company’s equity method investments based on the Greystone JV’s specialized industry, namely, multi-family lending and loan servicing solutions. Starting in the second quarter of 2025, the company has excluded such activity from the calculation of its non-GAAP financial measures as it is non-cash in nature and does not represent the underlying operating performance of the business. This activity is reported entirely within the Americas reportable segment.

The interim financial information for the three months ended March 31, 2026 and 2025 is unaudited. All adjustments, consisting of normal recurring adjustments, except as otherwise noted, considered necessary for a fair presentation of the unaudited interim condensed consolidated financial information for these periods have been included. Users of all of the aforementioned unaudited interim financial information should refer to the audited Consolidated Financial Statements of the company and notes thereto for the year ended December 31, 2025 in the company’s Annual Report on Form 10-K.

Please see the following tables for reconciliations of our non-GAAP financial measures to the most closely comparable GAAP measures.

Reconciliations of Non-GAAP financial measures

Reconciliation of Net (loss) income to Adjusted EBITDA:

  
 

 

Three Months Ended March 31,

(in millions) (unaudited)

2026

2025

Net (loss) income

$

(12.6

)

$

1.9

 

Adjustments:

 

 

Depreciation and amortization

 

25.3

 

 

26.7

 

Interest expense, net of interest income

 

49.2

 

 

52.3

 

Provision for income taxes

 

3.0

 

 

3.1

 

Unrealized loss on investments, net

 

1.1

 

 

0.7

 

Impairment of investments

 

—

 

 

6.5

 

Acquisition related costs

 

—

 

 

0.4

 

Servicing liability, fees and amortization

 

11.2

 

 

—

 

Pension buy-out settlement loss

 

16.6

 

 

—

 

Non-operating items related to the Greystone JV

 

12.9

 

 

—

 

Other(1)

 

4.6

 

 

4.6

 

Adjusted EBITDA

$

111.3

 

$

96.2

 

(1)

Other includes miscellaneous income and expense items such as non-cash amortization of certain merger-related deferred rent and tenant incentives, legal fees and costs associated with an antitrust dispute, and a portion of non-cash stock-based compensation expense associated with performance-based equity awards granted to four executive officers in 2024. The long-term incentive awards granted to these four executive officers consisted entirely of performance-based awards in 2024 and they provided for a higher maximum payout than typical awards. This award design structure was unique to 2024. We therefore excluded a portion of the non-cash stock-based compensation expense associated with those awards from the calculation of Adjusted EBITDA to improve the comparability of our operating results for the current period to prior and future periods and because we do not consider it to be a normal, recurring operating expense.
 

For the three months ended March 31, 2026, Other also reflects estimated settlements related to a breach of warranty claim. For the three months ended March 31, 2025, Other also reflects one-time consulting costs associated with the redomiciliation to Bermuda.

Reconciliation of Net (loss) income to Adjusted net income and Adjusted EPS:
 

 

Three Months Ended March 31,

(in millions, except per share data) (unaudited)

2026

2025

Net (loss) income

$

(12.6

)

$

1.9

 

Adjustments:

 

 

Merger and acquisition related depreciation and amortization

 

10.1

 

 

10.2

 

Unrealized loss on investments, net

 

1.1

 

 

0.7

 

Impairment of investments

 

—

 

 

6.5

 

Acquisition related costs

 

—

 

 

0.4

 

Servicing liability, fees and amortization

 

11.2

 

 

—

 

Pension buy-out settlement loss

 

16.6

 

 

—

 

Non-operating items related to the Greystone JV

 

12.9

 

 

—

 

Other

 

4.6

 

 

4.6

 

Tax impact of adjusted items(1)

 

(9.2

)

 

(3.8

)

Adjusted net income

$

34.7

 

$

20.5

 

Weighted average shares outstanding, basic

 

232.8

 

 

230.4

 

Weighted average shares outstanding, diluted(2)

 

235.5

 

 

232.3

 

(Loss) earnings per share, diluted(2)(3)

$

(0.05

)

$

0.01

 

Adjusted earnings per share, diluted(2)

$

0.15

 

$

0.09

 

(1)

Reflective of management’s estimation of an annual adjusted effective tax rate of 26% and 25% for the three months ended March 31, 2026 and 2025, respectively.

(2)

Weighted average shares outstanding, diluted is calculated by taking basic weighted average shares outstanding and adding dilutive shares of 2.7 million and 1.9 million for the three months ended March 31, 2026 and 2025, respectively.

(3)

For all periods with a GAAP net loss, weighted average shares outstanding, diluted is only used to calculate Adjusted earnings per share, diluted. For all periods with a GAAP net loss, all potentially dilutive shares would be anti-dilutive; therefore, both basic and diluted loss per share are calculated using weighted average shares outstanding, basic.

Reconciliation of Net cash used in operating activities to Free cash flow:
 

 

Three Months Ended March 31,

(in millions) (unaudited)

2026

2025

Net cash used in operating activities

$

(243.5

)

$

(162.0

)

Payment for property and equipment

 

(12.2

)

 

(4.6

)

Free cash flow

$

(255.7

)

$

(166.6

)

 

INVESTOR RELATIONS

Megan McGrath

Investor Relations

+1 312 338 7860

[email protected]

MEDIA CONTACT

Aixa Velez

Corporate Communications

+1 312 424 8195

[email protected]

KEYWORDS: New York United States North America

INDUSTRY KEYWORDS: Commercial Building & Real Estate Construction & Property REIT

MEDIA:

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Posted on

CareCloud Reports Q1 2026 Results

Reaffirms Guidance Following Capital Structure Simplification; Revenue Grows 13% Year-Over-Year

SOMERSET, N.J., May 07, 2026 (GLOBE NEWSWIRE) — CareCloud, Inc. (Nasdaq: CCLD, CCLDO) (“CareCloud” or the “Company”), a leader in AI-powered healthcare technology and revenue cycle management solutions for medical practices and health systems nationwide, today announced financial results for the quarter ended March 31, 2026. The Company reaffirmed its previously issued financial guidance following the successful closing of a $50 million credit facility, the announced redemption of 100% of its Series B Preferred Stock, and AI product launches. Together, these milestones mark a pivotal step in CareCloud’s ongoing growth trajectory—positioning the Company to scale its AI-driven revenue and expand margins, reporting its eighth consecutive quarter of positive GAAP net income with a meaningfully simpler capital structure for the future.

First Quarter 2026 Financial Highlights:

  • Revenue of $31.3 million, compared to $27.6 million in Q1 2025
  • GAAP net income of $922,000, compared to a net income of $1.9 million in Q1 2025
  • Adjusted EBITDA of $5.4 million, compared to $5.6 million in Q1 2025
  • GAAP EPS of ($0.01), compared to ($0.04) per share in Q1 2025

Recent Accomplishments

  • Full Scheduled Redemption of Series B Preferred Stock: Redemption scheduled for May 15, 2026
  • Inpatient Software Market Entry: Expanded product portfolio includes inpatient EHR, RCM and analytics. #1 Black Book ranked EDIS platform— significantly broadening the total addressable market
  • AI Center of Excellence Live: Launched stratusAI Desk Agent (~75% of inbound calls automated) and stratusAI Voice Audit

Management Commentary

“Q1 2026 marks the start of an exciting new chapter for CareCloud. We delivered 13% year-over-year revenue growth, expanded our AI offering and our addressable market into the inpatient segment, and took decisive action to simplify our capital structure with the announced full redemption of our Series B Preferred Stock and the closing of a new $50 million credit facility. With the Medsphere integration substantially complete, a stronger balance sheet, and our 2026 guidance reaffirmed, we believe CareCloud is uniquely positioned to translate this momentum into accelerating, durable shareholder value through the balance of 2026 and beyond.”

— Stephen Snyder, Chief Executive Officer, CareCloud

“This was the quarter our AI strategy moved from promise to performance. stratusAI Desk Agent is now resolving approximately 75% of inbound patient calls autonomously, stratusAI Voice Audit is surfacing revenue and compliance opportunities in real time, and our newly launched AI Center of Excellence is shipping new agentic capabilities at an accelerating pace. By layering these AI services on top of our expanded ambulatory and inpatient platform—including our #1 Black Book–ranked EDIS—we are building a differentiated, full-stack healthcare technology offering that scales with every customer we serve and creates a durable, technology-led competitive advantage.”

— A. Hadi Chaudhry, Chief Strategy Officer, CareCloud

“We are reaffirming our 2026 guidance based on our confidence for the year. The integration of our Medsphere acquisition impacted our earnings as anticipated this quarter and is now substantially complete, positioning us to deliver improving margins through the balance of 2026. We look forward to redeeming all of our Series B Preferred Stock for cash on May 15.”

— Norman Roth, Interim Chief Financial Officer and Corporate Controller, CareCloud

2026 Outlook

CareCloud entered 2026 with significant operating momentum and is reaffirming its guidance for calendar year 2026.

For the Fiscal Year Ending December 31, 2026   Full Year 2026 Guidance
Revenue   $128 – $132 million
Adjusted EBITDA   $29 – $31 million
GAAP Net Income Per Share (EPS)   $0.20 – $0.23


Revenue guidance is based on management’s expectations for contributions from existing clients, together with cross-selling and other organic and inorganic growth. EPS guidance of $0.20–$0.23 represents a 100-130% increase from the $0.10 achieved in full year 2025. Adjusted EBITDA guidance is $29–$31 million compared to the 2025 amount of $27.5 million.

As anticipated, Q1 2026 GAAP net income reflects a temporary, near-term impact from elevated amortization of acquired intangible assets and one-time integration costs tied to the Medsphere acquisition (which closed August 2025) and our other 2025 acquisitions. Q1 2026 adjusted EBITDA was depressed due to transition costs from Medsphere which have largely been eliminated by the end of Q1, so they will have a decreasing impact in future quarters. These items are non-recurring and integration-related, are expected to subside as the integrations are completed, and are not indicative of the underlying earnings power of the business. Management expects margin expansion to resume as we move through 2026, consistent with the full-year guidance reaffirmed above.

Conference Call Information

CareCloud management will host a live conference call today, May 7, 2026, at 8:30 a.m. Eastern Time to discuss first quarter 2026 results and the Company’s 2026 strategy.

Webcast:
ir.carecloud.com/events

Dial-in (Audio Only): 646-307-1865 | Reference: “CareCloud, Inc. First Quarter 2026 Results Conference Call.”

Replay Dial-in: 412-317-6671 | Access Code: 1116667 (available approximately 3 hours after the call).

About CareCloud

CareCloud brings disciplined innovation to the business of healthcare. Our suite of AI and technology-enabled solutions helps clients increase financial and operational performance, streamline clinical workflows and improve the patient experience. More than 45,000 providers count on CareCloud to help them improve patient care, while reducing administrative burdens and operating costs. Learn more about our products and services, including revenue cycle management (RCM), practice management (PM), electronic health records (EHR), business intelligence, patient experience management (PXM) and digital health, at carecloud.com.

Follow CareCloud on LinkedIn, X and Facebook.

For additional information, please visit our website at carecloud.com. To listen to video presentations by CareCloud’s management team, read recent press releases and view the latest investor presentation, please visit ir.carecloud.com.

Contacts

Company Contact:

Norman Roth
Interim Chief Financial Officer and Corporate Controller
CareCloud, Inc.
[email protected]		   Investor Contact:

Stephen Snyder
Chief Executive Officer
CareCloud, Inc.
[email protected]



Use of Non-GAAP Financial Measures

In our earnings releases, prepared remarks, conference calls, slide presentations and webcasts, we use and discuss non-GAAP financial measures, as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investor Relations section of our web site at ir.carecloud.com.

Forward-Looking Statements

This press release contains various forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may,” “might,” “will,” “shall,” “should,” “could,” “intends,” “expects,” “plans,” “goals,” “projects,” “anticipates,” “believes,” “seeks,” “estimates,” “forecasts,” “predicts,” “possible,” “potential,” “target,” or “continue” or the negative of these terms or other comparable terminology.

Our operations involve risks and uncertainties, many of which are outside our control and any one of which, or a combination of which, could materially affect our results of operations and whether the forward-looking statements ultimately prove to be correct. Forward-looking statements in this press release include, without limitation, statements reflecting management’s expectations for future financial performance and operating expenditures, expected growth, profitability and business outlook, and the expected results from the integration of our acquisitions.

These forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our (or our industry’s) actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. New risks and uncertainties emerge from time to time and it is not possible for us to predict all of the risks and uncertainties that could have an impact on the forward-looking statements, including without limitation, risks and uncertainties relating to the Company’s ability to manage growth, migrate newly acquired customers and retain new and existing customers, maintain cost-effective global operations, increase operational efficiency and reduce operating costs, predict and properly adjust to changes in reimbursement and other industry regulations and trends, retain the services of key personnel, develop new technologies, upgrade and adapt legacy and acquired technologies to work with evolving industry standards, compete with other companies’ products and services competitive with ours, manage and keep our information systems secure and other important risks and uncertainties referenced and discussed under the heading titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission.

The statements in this press release are made as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company does not assume any obligations to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

CARECLOUD, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2026 AND DECEMBER 31, 2025

($ in thousands, except share and per share amounts)

    March 31,     December 31,  
    2026     2025  
    (Unaudited)        
ASSETS                
Current assets:                
Cash   $ 3,354     $ 3,117  
Restricted cash     500       500  
Accounts receivable – net     15,236       15,062  
Contract asset     3,502       3,664  
Inventory     432       507  
Current assets – related party     16       16  
Prepaid expenses and other current assets     3,048       2,872  
Total current assets     26,088       25,738  
Property and equipment – net     7,461       7,775  
Operating lease right-of-use assets     4,662       3,106  
Intangible assets – net     16,500       18,968  
Goodwill     31,435       31,442  
Other assets     573       569  
TOTAL ASSETS   $ 86,719     $ 87,598  
LIABILITIES AND SHAREHOLDERS’ EQUITY                
Current liabilities:                
Accounts payable   $ 5,508     $ 6,937  
Accrued compensation     3,476       4,136  
Accrued expenses     5,951       5,970  
Operating lease liability (current portion)     1,358       927  
Deferred revenue (current portion)     4,748       4,148  
Notes payable (current portion)     742       728  
Contingent consideration (current portion)     734       909  
Dividend payable     944       668  
Total current liabilities     23,461       24,423  
Notes payable     250       441  
Contingent consideration     400       232  
Operating lease liability     3,390       2,187  
Deferred revenue     891       809  
Total liabilities     28,392       28,092  
COMMITMENTS AND CONTINGENCIES                
SHAREHOLDERS’ EQUITY:                
Preferred stock, $0.001 par value – authorized 7,000,000 shares. Series A, issued and outstanding 984,530 shares at March 31, 2026 and December 31, 2025. Series B, issued and outstanding 1,511,372 shares at March 31, 2026 and December 31, 2025.     2       2  
Common stock, $0.001 par value – authorized 85,000,000 shares. Issued 43,233,748 and 43,178,748 shares at March 31, 2026 and December 31, 2025, respectively. Outstanding 42,492,949 and 42,437,949 shares at March 31, 2026 and December 31, 2025, respectively.     43       43  
Additional paid-in capital     117,807       119,936  
Accumulated deficit     (54,910 )     (55,832 )
Accumulated other comprehensive loss     (3,953 )     (3,981 )
Less: 740,799 common shares held in treasury, at cost at March 31, 2026 and December 31, 2025     (662 )     (662 )
Total shareholders’ equity     58,327       59,506  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 86,719     $ 87,598  



CARECLOUD, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

($ in thousands, except share and per share amounts)

    Three Months Ended  
    March 31,  
    2026     2025  
NET REVENUE   $ 31,270     $ 27,632  
OPERATING EXPENSES:                
Direct operating costs     16,850       15,464  
Selling and marketing     1,414       1,131  
General and administrative     5,496       4,332  
Research and development     2,416       1,235  
Change in contingent consideration     57       –  
Depreciation and amortization     4,037       3,337  
Restructuring costs     –       114  
Total operating expenses     30,270       25,613  
OPERATING INCOME     1,000       2,019  
OTHER:                
Interest income     10       42  
Interest expense     (58 )     (58 )
Other income (expense) – net     22       (14 )
INCOME BEFORE PROVISION FOR INCOME TAXES     974       1,989  
Income tax provision     52       41  
NET INCOME   $ 922     $ 1,948  
                 
Preferred stock dividend     1,365       2,811  
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS   $ (443 )   $ (863 )
                 
Net loss per common share: basic and diluted   $ (0.01 )   $ (0.04 )
Weighted-average common shares used to compute basic and diluted loss per share     42,471,949       23,813,943  



CARECLOUD, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

($ in thousands)

    2026     2025  
OPERATING ACTIVITIES:                
Net income   $ 922     $ 1,948  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     4,085       3,407  
Lease amortization     463       480  
Provision for expected credit losses     106       70  
Foreign exchange loss (gain)     11       (1 )
Interest accretion     87       107  
Change in contingent consideration     57       –  
Stock-based compensation expense     64       108  
Changes in operating assets and liabilities:                
Accounts receivable     (280 )     (1,183 )
Contract asset     162       (105 )
Inventory     75       (35 )
Other assets     (228 )     (908 )
Accounts payable and other liabilities     (2,595 )     956  
Deferred revenue     682       269  
Net cash provided by operating activities     3,611       5,113  
INVESTING ACTIVITIES:                
Purchases of property and equipment     (412 )     (624 )
Capitalized software and other intangible assets     (820 )     (846 )
Initial payment for acquisition     –       (40 )
Net cash used in investing activities     (1,232 )     (1,510 )
FINANCING ACTIVITIES:                
Preferred stock dividends paid     (1,916 )     (1,730 )
Payment of contingent consideration     (57 )     –  
Payment of tax withholding on stock issued to employees     –       (21 )
Repayments of notes payable     (177 )     (181 )
Net cash used in financing activities     (2,150 )     (1,932 )
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND RESTRICTED CASH     8       (11 )
NET INCREASE IN CASH AND RESTRICTED CASH     237       1,660  
CASH AND RESTRICTED CASH – Beginning of the period     3,617       5,145  
CASH AND RESTRICTED CASH – End of the period   $ 3,854     $ 6,805  
SUPPLEMENTAL NONCASH INVESTING AND FINANCING ACTIVITIES:                
Conversion of preferred stock and accrued dividends to common stock   $ –     $ 2,435  
Dividends declared, not paid   $ 944     $ 1,299  
SUPPLEMENTAL INFORMATION – Cash paid during the period for:                
Income taxes   $ 14     $ 15  
Interest   $ 21     $ 18  


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 
TO COMPARABLE GAAP MEASURES (UNAUDITED)

The following is a reconciliation of the non-GAAP financial measures used by us to describe our financial results determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). An explanation of these measures is also included below under the heading “Explanation of Non-GAAP Financial Measures.”

While management believes that these non-GAAP financial measures provide useful supplemental information to investors regarding the underlying performance of our business operations, investors are reminded to consider these non-GAAP measures in addition to, and not as a substitute for, financial performance measures prepared in accordance with GAAP. In addition, it should be noted that these non-GAAP financial measures may be different from non-GAAP measures used by other companies, and management may utilize other measures to illustrate performance in the future. Non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP.

Adjusted EBITDA to GAAP Net Income

Set forth below is a reconciliation of our “adjusted EBITDA” to our GAAP net income.

    Three Months Ended March 31,  
    2026     2025  
    ($ in thousands)  
Net revenue   $ 31,270     $ 27,632  
                 
GAAP net income     922       1,948  
                 
Provision for income taxes     52       41  
Net interest expense     48       16  
Foreign exchange loss / other expense     32       19  
Stock-based compensation expense     64       108  
Depreciation and amortization     4,037       3,337  
Change in contingent consideration     57       –  
Transaction and integration costs     158       12  
Restructuring costs     –       114  
Adjusted EBITDA   $ 5,370     $ 5,595  



Non-GAAP Adjusted Operating Income to GAAP Operating Income

Set forth below is a reconciliation of our non-GAAP “adjusted operating income” and non-GAAP “adjusted operating margin” to our GAAP operating income and GAAP operating margin.
  

    Three Months Ended March 31,  
    2026     2025  
    ($ in thousands)  
Net revenue   $ 31,270     $ 27,632  
                 
GAAP net income     922       1,948  
Provision for income taxes     52       41  
Net interest expense     48       16  
Other (income) expense – net     (22 )     14  
GAAP operating income     1,000       2,019  
GAAP operating margin     3.2 %     7.3 %
                 
Stock-based compensation expense     64       108  
Amortization of purchased intangible assets     928       89  
Transaction and integration costs     158       12  
Change in contingent consideration     57       –  
Restructuring costs     –       114  
Non-GAAP adjusted operating income   $ 2,207     $ 2,342  
Non-GAAP adjusted operating margin     7.1 %     8.5 %



Non-GAAP Adjusted Net Income to GAAP Net Income

Set forth below is a reconciliation of our non-GAAP “adjusted net income” and non-GAAP “adjusted net income per share” to our GAAP net income and GAAP net income per share.

    Three Months Ended March 31,  
    2026     2025  
    ($ in thousands )  
GAAP net income   $ 922     $ 1,948  
                 
Foreign exchange loss / other expense     32       19  
Stock-based compensation expense     64       108  
Amortization of purchased intangible assets     928       89  
Transaction and integration costs     158       12  
Change in contingent consideration     57       –  
Restructuring costs     –       114  
Non-GAAP adjusted net income   $ 2,161     $ 2,290  

    Three Months Ended March 31,  
    2026     2025  
GAAP net loss attributable to common shareholders, per share   $ (0.01 )   $ (0.04 )
Impact of preferred stock dividend     0.03       0.09  
Net income per end-of-period share     0.02       0.05  
                 
Foreign exchange loss / other expense     0.00       0.00  
Stock-based compensation expense     0.00       0.00  
Amortization of purchased intangible assets     0.02       0.00  
Change in contingent consideration     0.00       –  
Transaction and integration costs     0.01       0.00  
Restructuring costs     –       0.00  
Non-GAAP adjusted earnings per share   $ 0.05     $ 0.05  
                 
End-of-period common shares     42,492,949       42,321,129  


For purposes of determining non-GAAP adjusted earnings per share, the Company used the number of common shares outstanding as of March 31, 2026 and 2025. Non-GAAP adjusted earnings per share does not take into account dividends declared or earned on preferred stock.

Net cash provided by operating activities to free cash flow

Set forth below is a reconciliation of our non-GAAP “free cash flow” to our GAAP net cash provided by operating activities.

    Three Months Ended March 31,  
    2026     2025  
    ($ in thousands)  
Net cash provided by operating activities   $ 3,611     $ 5,113  
                 
Purchases of property and equipment     (412 )     (624 )
Capitalized software and other intangible assets     (820 )     (846 )
Free cash flow   $ 2,379     $ 3,643  
                 
Net cash used in investing activities 1   $ (1,232 )   $ (1,510 )
Net cash used in financing activities   $ (2,150 )   $ (1,932 )



1. Net cash used in investing activities includes payments for acquisitions, purchases of property and equipment and capitalized software and other intangible assets. Purchases of property and equipment and capitalized software and other intangible assets are included in our computation of free cash flow.         

Explanation of Non-GAAP Financial Measures

We report our financial results in accordance with accounting principles generally accepted in the United States of America, or GAAP. However, management believes that, in order to properly understand our short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash or non-recurring items, when used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in frequency and impact on continuing operations. Management also uses results of operations before such items to evaluate the operating performance of CareCloud and compare it against past periods, make operating decisions and serve as a basis for strategic planning. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods more difficult, obscure trends in ongoing operations, or reduce management’s ability to make useful forecasts. Management believes that these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing our financial and operational performance and comparing this performance to our peers and competitors.

Management uses adjusted EBITDA, adjusted operating income, adjusted operating margin, and non-GAAP adjusted net income to provide an understanding of aspects of operating results before the impact of investing and financing charges and income taxes. Adjusted EBITDA may be useful to an investor in evaluating our operating performance and liquidity because this measure excludes non-cash expenses as well as expenses pertaining to investing or financing transactions. Management defines “adjusted EBITDA” as the sum of GAAP net income (loss) before provision for (benefit from) income taxes, net interest expense, other (income) expense, stock-based compensation expense, depreciation and amortization, integration costs, transaction costs, impairment charges and changes in contingent consideration.

Management defines “non-GAAP adjusted operating income” as the sum of GAAP operating income (loss) before stock-based compensation expense, amortization of purchased intangible assets, integration costs, transaction costs, impairment charges and changes in contingent consideration, and “non-GAAP adjusted operating margin” as non-GAAP adjusted operating income divided by net revenue.

Management defines “non-GAAP adjusted net income” as the sum of GAAP net income (loss) before stock-based compensation expense, amortization of purchased intangible assets, other (income) expense, integration costs, transaction costs, impairment charges, changes in contingent consideration, any tax impact related to these preceding items and income tax expense related to goodwill, and “non-GAAP adjusted net income per share” as non-GAAP adjusted net income divided by common shares outstanding at the end of the period, including the shares which were issued but are subject to forfeiture and considered contingent consideration.

Management considers all of these non-GAAP financial measures to be important indicators of our operational strength and performance of our business and a good measure of our historical operating trends, in particular the extent to which ongoing operations impact our overall financial performance.

In addition to items routinely excluded from non-GAAP EBITDA, management excludes or adjusts each of the items identified below from the applicable non-GAAP financial measure referenced above for the reasons set forth with respect to that excluded item:

Foreign exchange loss/other expense. Other expense is excluded because foreign currency gains and losses and other non-operating expenses are expenditures that management does not consider part of ongoing operating results when assessing the performance of our business, and also because the total amount of the expense is partially outside of our control. Foreign currency gains and losses are based on global market factors which are unrelated to our performance during the period in which the gains and losses are recorded.

Stock-based compensation expense. Stock-based compensation expense is excluded because this is primarily a non-cash expenditure that management does not consider part of ongoing operating results when assessing the performance of our business, and also because the total amount of the expenditure is partially outside of our control because it is based on factors such as stock price, volatility, and interest rates, which may be unrelated to our performance during the period in which the expenses are incurred. Stock-based compensation expense includes cash-settled awards based on changes in the stock price.

Amortization of purchased intangible assets. Purchased intangible assets are amortized over their estimated useful lives and generally cannot be changed or influenced by management after the acquisition. Accordingly, this item is not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are recorded.

Contingent consideration. Contingent consideration represents the portion of consideration payable to the seller of some of our acquisitions, the amount of which is based on the achievement defined performance measures contained in the purchase agreements. Contingent consideration is adjusted to fair value at the end of each reporting period. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred.

Transaction costs. Transaction costs are upfront costs related to acquisitions and related transactions, such as brokerage fees, pre-acquisition accounting costs and legal fees, and other upfront costs related to specific transactions. Management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred.

Integration costs. Integration costs are severance payments for certain employees relating to our acquisitions and exit costs related to terminating leases and other contractual agreements. Accordingly, management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred.

Restructuring costs. Restructuring costs primarily consist of severance and separation costs associated with the optimization of the Company’s operations and profitability improvements. Management believes that such expenses do not have a direct correlation to future business operations, and therefore, these costs are not considered by management in making operating decisions. Management does not believe such charges accurately reflect the performance of our ongoing operations for the period in which such charges are incurred.

Free cash flow. Management believes that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company’s financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net operating results as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, the Company’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our condensed consolidated statements of cash flows.



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Amylyx Pharmaceuticals Reports First Quarter 2026 Financial Results

Amylyx Pharmaceuticals Reports First Quarter 2026 Financial Results

  • Topline data readout from Phase 3 LUCIDITY clinical trial of avexitide in post-bariatric hypoglycemia on track; anticipated in Q3 2026
  • Cash runway expected to fund operations through potential avexitide commercialization and into 2028
  • Management to host conference call and webcast today at 8:00 a.m. Eastern Time

CAMBRIDGE, Mass.–(BUSINESS WIRE)–Amylyx Pharmaceuticals, Inc. (Nasdaq: AMLX) (“Amylyx” or the “Company”) today reported financial and business results for the first quarter ended March 31, 2026.

“With enrollment complete in the pivotal Phase 3 LUCIDITY clinical trial, we have a clear line of sight to the anticipated Q3 topline data readout, bringing us one step closer to the potential of delivering the first approved therapy for the post-bariatric hypoglycemia community,” said Joshua Cohen and Justin Klee, Co-CEOs of Amylyx. “We understand the devastating daily burden of this condition and are operating with a sense of urgency to advance our program. We have initiated regulatory and commercial readiness activities to help ensure we are positioned to move swiftly following LUCIDITY topline data. Supported by an expected cash runway extending into 2028, we are executing with focus and discipline as we work to bring this treatment to the PBH community in 2027, if approved.”

First Quarter and Recent Updates:

  • Amylyx completed enrollment for the pivotal Phase 3 LUCIDITY clinical trial of avexitide, an investigational, first-in-class glucagon-like peptide-1 (GLP-1) receptor antagonist with U.S. Food and Drug Administration (FDA) Breakthrough Therapy Designation in post-bariatric hypoglycemia (PBH), in March 2026. LUCIDITY enrolled 78 participants and is a 16-week, multicenter, randomized, double-blind, placebo-controlled trial evaluating the efficacy and safety of avexitide in adults with PBH following Roux-en-Y gastric bypass (RYGB) surgery. Participants who complete the 16-week double-blind period are eligible to enter a 32-week open-label extension (OLE) period.
  • Amylyx announced the initiation of an Expanded Access Program (EAP) for the use of avexitide to treat U.S. adults with PBH following RYGB surgery in May 2026. Initial eligible patients include individuals who have completed the pivotal Phase 3 LUCIDITY clinical trial and participants in a prior trial of avexitide in PBH following RYGB surgery.
  • Amylyx completed enrollment of Cohort 2 (n=12) of the Phase 1 LUMINA clinical trial of AMX0114, an investigational antisense oligonucleotide (ASO) targeting calpain-2 with FDA Fast Track Designation for the potential treatment of amyotrophic lateral sclerosis (ALS), in March 2026. The LUMINA trial is a randomized, double-blind, placebo-controlled, multiple ascending dose clinical trial of AMX0114 in people living with ALS. LUMINA is evaluating the safety, tolerability, pharmacokinetics, and pharmacodynamics of AMX0114 in people living with ALS and assessing both novel and broadly researched ALS biomarkers, including change from baseline in neurofilament light chain (NfL) levels.

Upcoming Expected Milestones:

  • Topline data readout for Phase 3 LUCIDITY clinical trial of avexitide in PBH is on track and anticipated in the third quarter of 2026. If approved, commercial launch of avexitide is anticipated in 2027.LUCIDITY is evaluating the FDA-agreed-upon primary outcome of reduction in the composite of Level 2 and Level 3 hypoglycemic events through Week 16. LUCIDITY was informed by data from five prior PBH clinical trials of avexitide showing consistent effects, most notably statistically significant reductions in Level 2 and Level 3 hypoglycemic events. Avexitide was generally well-tolerated, with a favorable safety profile replicated across previous clinical trials.
  • Presentation of early biomarker data from Cohort 1 (n=12) of the Phase 1 LUMINA clinical trial of AMX0114 in ALS is expected at the 2026 European Network to Cure ALS (ENCALS) Annual Meeting in June 2026. Cohort 1 of LUMINA is investigating the first and lowest of four doses being evaluated in the trial. The data are expected to provide initial information about the levels of the ALS biomarkers being assessed from the first dose in the LUMINA trial. The Company previously presented early safety and tolerability data from Cohort 1 of LUMINA showing AMX0114 was generally well-tolerated, with no treatment-related serious adverse events (SAEs).
  • Investigational New Drug (IND)-enabling studies for AMX0318, a novel GLP-1 receptor antagonist for long-acting administration to treat PBH and other rare diseases, are underway with an IND filing targeted for 2027. AMX0318 was selected as a development candidate after demonstrating robust preclinical and chemical properties, including a favorable pharmacokinetic profile that may support long-acting administration, a robust chemical stability profile, strong in vitro potency, evidence of in vivo activity and tolerability, and high solubility. AMX0318 was identified through a research collaboration with Gubra A/S (Gubra), a company specializing in peptide-based drug discovery and preclinical contract research services.

Financial Results for the First Quarter Ended March 31, 2026

R&D Expenses: Research and development expenses for the first quarter of 2026 were $27.6 million, compared to $22.1 million for the same period in 2025. The increase was primarily due to an increase in spending related to the clinical development of avexitide in PBH. Milestone payments totaling $4.0 million to Gubra were also recognized following the selection and handover of AMX0318 as a development candidate for PBH and other rare diseases. The increase was offset primarily by decreased spending related to AMX0035 for the treatment of progressive supranuclear palsy (PSP). Research and development expenses include $1.8 million of stock-based compensation expense for the quarter ended March 31, 2026, compared to $1.8 million of stock-based compensation expense for the quarter ended March 31, 2025.

SG&A Expenses: Selling, general, and administrative expenses for the first quarter of 2026 were $16.2 million, compared to $15.7 million for the same period in 2025. This increase was primarily due to an increase in consulting and professional services. Selling, general, and administrative expenses include $4.4 million of stock-based compensation expense for the quarter ended March 31, 2026, compared to $5.0 million of stock-based compensation expense for the quarter ended March 31, 2025.

Net Loss: Net loss for the three months ended March 31, 2026 was $41.3 million, or $0.37 per share, compared to net loss of $35.9 million, or $0.42 per share, for the same period in 2025.

Cash Position: Cash, cash equivalents, and short-term investments were $279.8 million at March 31, 2026, compared to $317.0 million at December 31, 2025. Based on its current operating plans, Amylyx expects a cash runway into 2028.

Investor Conference Call Information

Amylyx’s management team will host a conference call today, May 7, 2026, at 8:00 a.m. ET to discuss financial results and provide an update on the business. To access the conference call, please dial +1 (888)-880-3330 (U.S. & Canada) or +1 (646)-357-8766 (international) at least 10 minutes prior to the start time and ask to be joined into the Amylyx Pharmaceuticals call. A live audio webcast of the call will be available under “Events and Presentations” in the Investor section of the Company’s website, https://investors.amylyx.com/events-presentations. The webcast will be archived and available for replay for 90 days following the event.

Available Information

Amylyx periodically provides other information for investors on the Company’s corporate website, https://amylyx.com, and the Company’s investor relations website, https://investors.amylyx.com. This includes press releases and other information about financial performance, information on corporate governance, and details related to our annual meeting of stockholders. Amylyx intends to use its website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Amylyx’s website, in addition to following the Company’s press releases, SEC filings, and public conference calls and webcasts.

About Avexitide

Avexitide is an investigational, first-in-class glucagon-like peptide-1 (GLP-1) receptor antagonist that has been evaluated in five Phase 1 and Phase 2 clinical trials for post-bariatric hypoglycemia (PBH) and has also been studied in congenital hyperinsulinism (HI). The U.S. Food and Drug Administration (FDA) has granted avexitide Breakthrough Therapy Designation for both indications, Rare Pediatric Disease Designation in congenital HI, and Orphan Drug Designation for the treatment of hyperinsulinemic hypoglycemia (which includes PBH and congenital HI). In PBH, an exaggerated GLP-1 response leads to excessive insulin secretion, resulting in recurrent hypoglycemic events. Avexitide is a GLP-1 receptor antagonist designed to competitively bind to the GLP-1 receptor on pancreatic islet beta cells and inhibit the exaggerated GLP-1-driven insulin response characteristic of PBH, reducing inappropriate insulin secretion and stabilizing blood glucose levels. In two Phase 2 PBH clinical trials, avexitide demonstrated highly statistically significant reductions in hypoglycemic events.

About Post-Bariatric Hypoglycemia (PBH)

PBH is a chronic metabolic condition that is estimated to affect approximately 8% of people in the U.S. who have undergone the two most common types of bariatric surgery, sleeve gastrectomy and Roux-en-Y gastric bypass (approximately 160,000 people in the U.S.). PBH is thought to be driven by an exaggerated glucagon-like peptide-1 (GLP-1) response, primarily in response to food intake, leading to persistent, recurrent, and often debilitating rapid drops in blood glucose, known as hypoglycemia. The American Diabetes Association (ADA) recognizes hypoglycemia as a potential medical emergency because low blood glucose levels can compromise the body’s ability to maintain essential physiologic processes. In addition, hypoglycemia in the context of PBH may manifest as neuroglycopenia – an inadequate supply of glucose to the brain – which can cause confusion, cognitive dysfunction, loss of consciousness, and seizures. PBH can be associated with substantial disability, compromising safety, disrupting independent living, and affecting nutritional status and overall quality of life. Despite the substantial burden, there are currently no FDA-approved therapies for PBH.

About the LUCIDITY Trial

LUCIDITY (NCT06747468) is a 78-participant, multicenter, randomized, double-blind, placebo-controlled Phase 3 clinical trial evaluating the efficacy and safety of avexitide in participants with PBH following RYGB surgery. The Phase 3 trial is being conducted at 21 sites in the U.S. Participants were randomized 3:2 to receive either 90 mg of avexitide subcutaneously once daily or placebo. The trial includes an up to six-week screening period, including a three-week run-in period, a 16-week double-blind treatment period, and an open-label extension (OLE) period with a duration of 32 weeks. The primary efficacy objective of LUCIDITY is to evaluate the FDA-agreed upon primary outcome of reduction in the composite of Level 2 and Level 3 hypoglycemic events through Week 16. Safety and tolerability will also be evaluated.

About Amylyx Pharmaceuticals

At Amylyx, our mission is to usher in a new era of treating diseases with high unmet needs. Where others see challenges, we see opportunities that we pursue with urgency, rigorous science, and unwavering commitment to the communities we serve. We are currently focused on four investigational therapies across several endocrine conditions and neurodegenerative diseases in which we believe can make the greatest impact. For more information, visit amylyx.com and follow us on LinkedIn and X. For investors, please visit investors.amylyx.com.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Such statements include, but are not limited to, Amylyx’s expectations regarding: the potential of avexitide as a treatment for PBH; the timing for the topline data readout and completion of the Phase 3 LUCIDITY clinical trial of avexitide; the timing for potential commercialization of avexitide; the expected enrollment of the Expanded Access Program for avexitide; the potential for AMX0114 as a treatment for ALS; the expected timeline and announcement for Cohort 1 biomarker data from the Phase 1 LUMINA clinical trial, and enrollment and progress of the LUMINA trial; the therapeutic potential of AMX0318 and the expected timeline for a potential IND submission; and the potential benefits of expedited program and orphan designations held by Amylyx; and financial performance, cash runway and longer-term strategy. Any forward-looking statements in this press release and related comments in the Company’s earnings conference call are based on management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. Risks that contribute to the uncertain nature of the forward-looking statements include: the success, cost, and timing of Amylyx’s program development activities; Amylyx’s ability to execute on its regulatory development plans and expectations regarding the timing of results from its planned data announcements and initiation of clinical studies; Amylyx’s ability to fund operations, and the impact that global macroeconomic uncertainty, geopolitical instability, and public health events will have on Amylyx’s operations, as well as the risks and uncertainties set forth in Amylyx’s United States Securities and Exchange Commission (SEC) filings, including Amylyx’s Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent filings with the SEC. All forward-looking statements contained in this press release and related comments in our earnings conference call speak only as of the date on which they were made. Amylyx undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

AMYLYX PHARMACEUTICALS, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

UNAUDITED

 

(in thousands)

 

 

 

 

 

March 31, 2026

 

 

December 31, 2025

 

Assets

 

 

 

 

 

 

Cash, cash equivalents and marketable securities

 

$

279,768

 

 

$

316,979

 

Prepaid expenses and other current assets

 

 

5,256

 

 

 

6,692

 

Other assets

 

 

8,579

 

 

 

8,974

 

Total assets

 

$

293,603

 

 

$

332,645

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

14,811

 

 

$

21,429

 

Other liabilities

 

 

5,631

 

 

 

5,957

 

Total liabilities

 

 

20,442

 

 

 

27,386

 

Stockholders’ equity

 

 

273,161

 

 

 

305,259

 

Total liabilities and stockholders’ equity

 

$

293,603

 

 

$

332,645

 

AMYLYX PHARMACEUTICALS, INC.

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

UNAUDITED

 

(in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

 

2026

 

 

2025

 

Operating expenses:

 

 

 

 

 

 

Research and development

 

$

27,610

 

 

$

22,119

 

Selling, general and administrative

 

 

16,169

 

 

 

15,684

 

Total operating expenses

 

 

43,779

 

 

 

37,803

 

Loss from operations

 

 

(43,779

)

 

 

(37,803

)

Other income, net

 

 

2,495

 

 

 

1,896

 

Net loss

 

$

(41,284

)

 

$

(35,907

)

 

 

 

 

 

 

 

Net loss per share — basic and diluted

 

$

(0.37

)

 

$

(0.42

)

Weighted-average shares used in computing net loss per share — basic and diluted

 

 

110,563,360

 

 

 

85,697,108

 

 

Media

Amylyx Media Team

+1 (857) 320-6191

[email protected]

Investors

Lindsey Allen

Amylyx Pharmaceuticals, Inc.

+1 (857) 320-6244

[email protected]

KEYWORDS: Massachusetts United States North America

INDUSTRY KEYWORDS: Health Surgery Neurology Clinical Trials Pharmaceutical Biotechnology

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MRI‑Simmons and Experian Expand Collaboration to Bring Research‑Based Audiences to Experian’s Data Marketplace

MRI‑Simmons and Experian Expand Collaboration to Bring Research‑Based Audiences to Experian’s Data Marketplace

By translating MRI‑Simmons’ nationally representative consumer research into modeled audiences, the collaboration helps marketers turn consumer motivations, attitudes, and behaviors into scalable, media‑ready audiences.

NEW YORK–(BUSINESS WIRE)–
Today, MRI‑Simmons announced an expanded collaboration with Experian, a leading global data and technology company, to make audience segments derived from MRI‑Simmons’ nationally representative consumer research available through Experian’s data marketplace. The collaboration enables advertisers, agencies, and media owners to access audiences informed by MRI‑Simmons’ consumer research, then activate those audiences at scale through Experian’s platform and distribution network.

Experian customers can now select from a broad range of MRI-Simmons audience segments that reflect the motivations, attitudes, and behaviors shaping consumer decisions. Grounded in research from MRI-Simmons’ national consumer study and enabled by Experian’s modeling engine, these segments use research‑based modeling to scale insights for broader audience reach.

Marketers can activate these audiences through Experian Curated Deals, which integrate data, identity, inventory, and intelligent optimization to drive advertising efficiency. This gives marketers a streamlined path from audience planning to activation by aligning audience segments informed by MRI‑Simmons’ insights with suitable media.

“Our expanded collaboration with Experian is empowering marketers to unlock deeper insights and create breakthrough campaigns,” said Joshua Pisano, General Manager of Global Media, NIQ and MRI-Simmons. “By joining forces with innovative partners like Experian, we’re not just delivering access to high quality consumer insights derived from our products, we’re innovating the future of privacy-first, data-driven marketing.”

In addition to syndicated segments, MRI‑Simmons provides custom audience development for brands seeking more specialized targeting. Custom segments can be made available in Experian’s data marketplace, empowering marketers to plan and activate campaigns through Experian’s trusted network of integrated platforms.

“Making MRI‑Simmons’ research‑based audiences available through our data marketplace enables brands to understand their audiences on a deeper level, not just who they are, but what drives their decisions,” said Jake Abraham, Head of Strategic Partnerships at Experian. “With our Curated Deals, marketers can seamlessly turn these insights into action, activating the right audiences across channels through our integrated platform network.”

FAQs

How do MRI‑Simmons and Experian work together in this partnership?

MRI‑Simmons and Experian bring together best‑in‑class consumer understanding and advanced activation capabilities to help marketers move seamlessly from insight to impact. MRI‑Simmons provides rich, survey‑based consumer insights that reveal motivations, attitudes, and behaviors, while Experian applies its modeling expertise to translate those insights into scalable, privacy‑responsible audiences that can be activated across leading media platforms.

What role does MRI‑Simmons play versus Experian in developing and activating audiences?

MRI‑Simmons serves as the source of consumer intelligence, delivering deep, research‑driven insights that inform how audiences are defined and understood. Experian is responsible for modeling those research‑based insights and operationalizing them within its ecosystem, enabling distribution to third‑party platforms for campaign activation. This clear division ensures each company focuses on its core strengths.

Are MRI‑Simmons consumer survey insights used directly for campaign activation?

No. MRI‑Simmons insights are not used directly for activation. Instead, MRI Simmons’ survey-based research informs the strategic design and definition of audiences. Experian then uses those research- derived insights as inputs to create modeled audiences that are suitable for activation within its platform and partner environments.

How are MRI‑Simmons research insights transformed into addressable audiences for media activation?

MRI Simmons provides foundational consumer insights based on robust, nationally representative research. Experian applies advanced analytics and modeling techniques to translate those insights into scalable audience segments. These modeled audiences are then made available through Experian’s partner network, allowing marketers to reach consumers in a way that reflects real-world attitudes and behaviors uncovered by MRI Simmons research.

What benefits do marketers gain from combining MRI‑Simmons consumer insights with Experian’s modeling and activation capabilities?

Marketers gain the ability to pair deep human understanding with real world scale. MRI Simmons delivers trusted insight into why consumers think and behave the way they do, while Experian brings those insights to life through modeled audiences that can be activated across the media ecosystem. The result is more informed planning, more relevant targeting, and campaigns that better connect with consumers—without compromising privacy or role clarity.

About MRI‑Simmons

MRI‑Simmons, a joint venture majority‑owned by NIQ, is the leading provider of insights on the American consumer. A leader in consumer insights for over 60 years, MRI‑Simmons possesses one of the few data sets widely used across the media ecosystem for consumer profiling, media planning, audience research, and insight‑driven audience development. Powered by address‑based probabilistic sampling, MRI‑Simmons measures real people, chosen at random, to represent the U.S. population in all its diversity—resulting in the most accurate view of the American consumer.

To learn more, visit www.mrisimmons.com.

About Experian

Experian is a global data and technology company, powering opportunities for people and businesses around the world. We help to redefine lending practices, uncover and prevent fraud, simplify healthcare, deliver digital marketing solutions, and gain deeper insights into the automotive market, all using our unique combination of data, analytics and software. We also assist millions of people to realise their financial goals and help them to save time and money.

We operate across a range of markets, from financial services to healthcare, automotive, agrifinance, insurance, and many more industry segments.

We invest in talented people and new advanced technologies to unlock the power of data and to innovate. A FTSE 100 Index company listed on the London Stock Exchange (EXPN), we have a team of 25,200 people across 33 countries. Our corporate headquarters are in Dublin, Ireland. Learn more at experianplc.com.

© 2026 Nielsen Consumer LLC. All Rights Reserved.

NIQ-GENERAL

Media Contact:

[email protected]

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Rockwell Automation to Present at the Wolfe Research 19th Annual Global Transportation and Industrials Conference

Rockwell Automation to Present at the Wolfe Research 19th Annual Global Transportation and Industrials Conference

MILWAUKEE–(BUSINESS WIRE)–
Rockwell Automation, Inc. (NYSE: ROK) SVP and CFO, Christian Rothe; SVP, Lifecycle Services, Matt Fordenwalt; and VP, Investor Relations and Market Strategy, Aijana Zellner, will present at the Wolfe Research 19th Annual Global Transportation and Industrials Conference on Wednesday, May 20, 2026, in New York.

The fireside chat will be webcast beginning at approximately 8:40 a.m. EDT and will be available on the Rockwell Automation Investor Relations website at www.rockwellautomation.com/en-us/investors.html.

About Rockwell Automation

Rockwell Automation, Inc. (NYSE: ROK), is a global leader in industrial automation and digital transformation. We connect the imaginations of people with the potential of technology to expand what is humanly possible, making the world more productive and more sustainable. Headquartered in Milwaukee, Wisconsin, Rockwell Automation employs approximately 26,000 problem solvers dedicated to our customers in more than 100 countries as of fiscal year end 2025. To learn more about how we are bringing the Connected Enterprise to life across industrial enterprises, visit www.rockwellautomation.com.

Aijana Zellner

Head of Investor Relations and Market Strategy

+1 440-289-8439

[email protected]

Ed Moreland

Head of Government Affairs and Corporate Communications

+1 571-296-0391

[email protected]

KEYWORDS: Wisconsin Illinois United States North America

INDUSTRY KEYWORDS: Electronic Design Automation Machine Tools, Metalworking & Metallurgy Technology Manufacturing Other Technology Hardware Machinery

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