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On April 14, 2026, Freedom Holding Corp (FRHC) shares rose 3.8% to a current price of $156.70. The stock has demonstrated impressive price performance over the

Bank Expands its Fairfax County Footprint During its 25th Anniversary Year

, /PRNewswire/ -- Freedom Financial Holdings, Inc. (OTCQX: FDVA) today announced that it has relocated its corporate offices and The Freedom Bank of Virginia has opened a new branch co-located in the heart of Tysons Corner at 1750 Tysons Blvd., McLean, VA 22102. This milestone marks a significant step in the bank's continued growth and long-term investment in Northern Virginia during its 25th anniversary.

Located in the region's most dynamic business and residential corridor, the new Tysons branch reflects Freedom Bank's commitment to being accessible, responsive, and deeply connected to the communities it serves — positioning the bank to deliver even greater personalized service, local decision-making, and strategic financial expertise to individuals and businesses alike.

"The opening of our newest branch in Tysons and the relocation of our corporate offices represent an important step in increasing our visibility in the region," said Joe Thomas, President & CEO of Freedom Bank. "As we celebrate 25 years of serving the community, this milestone reflects both pride in our history and confidence in our future. There are over 12,000 business and over 250,000 residents within 5 miles of this new office which will enable our team to share Freedom's differentiated banking experience with more business and consumer clients who desire quick decisions, flexible solutions, innovative technology, and responsive service to empower their dreams."

The branch is conveniently located near the Tysons Galleria next to the Ritz-Carlton Hotel. It is situated on the ground level in Suite 100, across the lobby from The Palm Restaurant, with ample parking available in the adjacent garage. The Tysons team is ready to serve both current and new clients with comprehensive Business, Personal, and Mortgage Banking solutions.

About Freedom Bank

The Freedom Bank of Virginia is a next-generation community bank focused on empowering clients to achieve their dreams through innovative business, commercial, personal, and mortgage banking solutions. With deep banker expertise, an entrepreneurial mindset, exceptional service, and easy-to-use technology, Freedom Bank is built to be its clients' primary relationship bank. Freedom Bank has locations in Chantilly, Fairfax, Manassas, Reston, Tysons, and Vienna. The bank is headquartered in Fairfax, Virginia, with corporate offices located in Tysons. To learn more, visit www.freedom.bank.

Contact:
Joseph J. Thomas
President & Chief Executive Officer
Phone: 703-667-4161
Email: [email protected]

SOURCE The Freedom Bank of Virginia

, /PRNewswire/ -- Freedom Financial Holdings (OTCQX: FDVA), (the "Company" or "Freedom"), the holding company for The Freedom Bank of Virginia (the "Bank") today announced net income of $1,160,338 or $0.16 per diluted share for the first quarter compared to a net loss of $3,567,973, or $0.50 per diluted share for the three months ended December 31, 2025, and net income of $2,019,348 or $0.28 per diluted share for the three months ended March 31, 2025.   Comparisons to prior quarters are challenging since the fourth quarter of 2025 included an unexpected $6.9 million credit provision and the first quarter of 2025 included the non-recurring recovery and recognition of almost $1.04 million of interest income from previously charged off loans and recovery of legal expenses, which contributed almost $0.12 per diluted share that quarter.

Joseph J. Thomas, President, and CEO, commented, "We are pleased to start off 2026, our 25th anniversary year, with favorable net income trends, improving net interest margin, and stabilizing credit quality.  Net income increased $4.728 million after last quarter's loss on the recognition of a $6.9 million credit provision. We continue to see improvement in our cost of funds dropping 15 basis points in the first quarter, enabling net interest margin expansion of 3 basis points to 2.73%.   Despite the changing and uncertain economic environment, we continue to see improvement in the credit quality of our loan portfolio with non-accrual loans down 28% to $19.2 million. Our entire team is working hard to grow loans and we experienced a 2.97% increase in net loans in the quarter including growth in the Held for Sale mortgage portfolio.  We were pleased with the increase in mortgage activity with gain on sale and fee revenue that increased by 30% to $942,257 in the first quarter of 2026 from $680,766 in the fourth quarter of 2025 as mortgage rates decreased.  Our team is taking the steps necessary to help clients manage through higher rates and inflation, changes in credit markets, and increasing technology risks and opportunities.

First Quarter 2026 Highlights include:

The Company posted net income of $1,160,338 or $0.16 per diluted share for the first quarter compared to a net loss of $3,567,973, or $0.50 per diluted share for the three months ended December 31, 2025, and net income of $2,019,348 or $0.28 per diluted share for the three months ended March 31, 2025   Tangible Book Value per share remained relatively flat during the quarter at $12.08 on March 31, 2026, compared to $12.05 on December 31, 2025, as quarter to date earnings were largely offset by changes in valuation on the available for sale portfolio and share buybacks were offset by shares vested in the quarter. Return on Average Assets ("ROAA") was 0.44% for the quarter ended March 31, 2026, compared to ROAA of (1.37%) for the quarter ended December 31, 2025, and 0.76% for the three months ended March 31, 2025. Return on Average Equity ("ROAE") was 5.57% for the quarter ended March 31, 2026, compared to ROAE of (15.96%) for the three months ended December 31, 2025, and 9.95% for the three months ended March 31, 2025. Total Assets were $1.053 billion on March 31, 2026, a decrease of $13 million or 1.2% from total assets on December 31, 2025, mostly due to using excess cash assets to repay FHLB advances. Gross Loans held-for-investment increased by $8.4 million or 1.1% during the quarter. Total deposits increased by $3.1 million or by 0.34% during the quarter. Non-interest-bearing demand deposits decreased by $178 thousand during the quarter to $149.3 million and represented 16.28% of total deposits on March 31, 2026. The net interest margin1 increased in the first quarter to 2.73%, higher by 3 basis points compared to the linked quarter and lower by 30 basis points compared to the same period in 2025. The increase in the net interest margin across linked quarters was a result of lower funding costs, while the decrease for the same period a year ago is related to the recognition of previously uncollected interest from problem loan resolutions, with such interest contributing 41 basis points to the net interest margin at that time. The cost of funds was 2.84% for the first quarter, lower by 15 basis points compared to the linked quarter and lower by 39 basis points compared to the same period in 2025, as a result of a decline in deposit costs and borrowing costs. Non-interest income increased by 20% compared to the linked quarter and decreased by 44% compared to the same period in 2025. The increase in non-interest income in the first quarter of 2026 was primarily due to higher net revenue from the mortgage unit. Non-interest expense increased by $1.19 million in the first quarter or by 21% compared to the linked quarter and increased by 13% compared to the same period in 2025. The increase in expenses compared to the linked quarter was largely due to increased accruals for annual bonuses over the prior quarter where there was only minimal bonus expense due to the net loss in the quarter, increased commission expense and lender credits resulting from increased mortgage activity, increased health insurance premiums, and increased FDIC  insurance expense due to  the deterioration in credit quality in Q4.   The Efficiency Ratio2 was 81.88% for the quarter ended March 31, 2026, compared to 71.29% for the linked quarter and 69.22% for the same period in 2025, which included the aforementioned interest income and legal expense recoveries. Uninsured deposits were 27.11% of total deposits and total liquidity to uninsured deposits3 was 117.18% of uninsured deposits on March 31, 2026. Net charge offs were 0.81% of average loans compared to 0.03% in the prior quarter as the Company recognized the $6.2 million in charge-offs mostly related to the large loan that had been provisioned for in the prior quarter. No additional expense was recognized in relation to this credit in Q1 and this charge-off was met with the commensurate amelioration in our allowance for credit losses.  The ratio of non-accrual loans to loans held-for-investment was 2.50% on March 31, 2026, compared to 3.51% on December 31, 2025, and 1.45% on March 31, 2025.  The ratio of non-performing assets to total assets was 1.95% on March 31, 2026, compared to 2.51% on December 31, 2025, and 1.01% on March 31, 2025. The Company recognized a provision for loan losses of $59,336, related to changes in the overall portfolio including loan growth. The ratio of the allowance for loan losses to loans held-for-investment was 1.00% at March 31, 2026 compared to 1.82% at the end of the linked quarter. The Bank continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 10.70%, Common Equity Tier 1 ratio of 13.50%, Tier 1 Risk Based Capital ratio of 13.50% and a Total Capital ratio of 14.42% as of March 31, 2026.  Common Equity Tier 1, Tier 1 Risk Based Capital, and Total Capital ratios are down by 32 basis points, 32 basis points, and 66 basis points, respectively, due to the Bank holding higher average assets in the quarter,  higher risk weighted assets at quarter end due to  loan growth,  lower Tier 2 capital as the allowance for credit losses that was included in capital at 2025 year end was abated due to the charge-off, and the charge-off causing a portion of our deferred tax asset to be disallowed for capital purposes. Net Interest Income
The Company recorded net interest income of $6.895 million for the first quarter of 2026, higher by 2.97% compared to the linked quarter, and lower by 10.68% compared to the same period in 2025. The net interest margin in the first quarter of 2026 was 2.73%, higher by 3 basis points compared to the linked quarter and lower by 30 basis points compared to the same period in 2025.

The following factors contributed to the changes in net interest margin during the first quarter of 2026 compared to the linked and calendar quarters.

Yields on average earning assets were 5.44% in the first quarter of 2026, lower by 11 basis points compared to the linked quarter, and lower by 67 basis points compared to the prior year calendar quarter. The decrease in yields on average earning assets in the first quarter compared to the linked quarter was primarily due to increased cash and decreased securities held on the balance sheet in the first quarter.  The decrease over the calendar quarter is largely due to the recognition of uncollected interest from problem loan resolutions in the prior year calendar quarter which added 41 basis points to the earning asset yield in that quarter.  The remaining difference stems from interest rate decreases on cash and floating rate securities and loans that took place over the course of the year.   Loan yields decreased by 1 basis point to 5.97% from 5.98% in the linked quarter, while yields on investment securities decreased by 26 basis points to 3.97% from 4.23% in the linked quarter. Loan yields decreased by 77 basis points, while yields on investment securities decreased by 58 basis points compared to the calendar quarter. Cost of funds decreased by 15 basis points to 2.84% from 2.99% in the linked quarter, and by 39 basis points compared to the prior year quarter, due to lower deposit and borrowing costs. Non-interest Income
Non-interest income was $1.4 million for the first quarter, an increase of 20% when compared to the linked quarter and an increase of 44% when compared to the same period in 2025. The increase in non-interest income in the first quarter of 2026 compared to the linked quarter and the prior calendar quarter was due to higher revenue from the gain on sale of mortgage loans. 

Total Revenue4
Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was higher by 5.47% compared to the linked quarter and lower by 4.5% compared to the calendar quarter in 2025. The increase in total revenue compared to the linked quarter was due to an increase in the net interest margin, contributing to the increase of $199 thousand in net interest income over the linked quarter and $232 thousand in increased non-interest income largely from the gain on sale of residential mortgages.  The decrease compared to the prior calendar quarter is due to the extraordinary recovery of $1.04 million of previously uncollected interest from problem loan resolutions.

Non-interest Expense
Non-interest expense in the first quarter increased by $1.19 million or by 21.14% compared to the linked quarter and increased by 12.96% compared to the same period in 2025. The increase in expenses compared to the linked quarter was largely related to accrual expenses for annual bonuses that were curtailed in the prior quarter given the net loss experienced, and increased expenses related to increased mortgage activity, including commission expense, appraisal fees, and lender credits.  Salary expenses are up due to annual raises taking effect and increased hiring  related to the opening of the new location in Tysons Corner, VA. The new location resulted in additional occupancy expenses related to pre-opening, and the Bank also experienced annual escalations in our other leased locations and from lease renewals.   Health insurance premiums have risen over the rates paid in 2025.   We also increased our marketing expenses related to promoting the new location and planning for our 25th anniversary year.

The Efficiency Ratio2 was 81.88% for the quarter ended March 31, 2026, compared to 71.29% for the linked quarter and 69.22% for the same period in 2025.  

Asset Quality
Non-accrual loans decreased in the first quarter and were 2.46% of loans held-for-investment compared to 3.51% of loans held-for-investment at the end of the linked quarter as we recognized charge-offs. Total non-performing assets (defined as the sum of loans on non-accrual, loans greater than 90 days past due and accruing, and OREO assets) were 1.95% of total assets as of March 31, 2026, compared to 2.51% of total assets, at the end of the linked quarter.

The Company recognized a provision for loan losses of $59,336, primarily related to changes in the overall portfolio, including loan growth.

The Company's ratio of Allowance for Loan Losses to loans held-for-investment was 1.00% as of March 31, 2026, compared to the ratio of Allowance for Loan Losses to loans held-for-investment of 1.82% as of December 31, 2025.

Total Assets
Total assets on March 31, 2026, were $1.053 billion compared to total assets of $1.065 billion on December 31, 2025. Changes in major asset categories since December 31, 2025, were as follows:

Interest bearing deposits at banks decreased by $36.4 million. Investment balances decreased by $3.56 million. Gross loans held-for investment increased by $8.39 million Residential mortgage loans held for sale increased by $7.794 million Total Liabilities
Total liabilities on March 31, 2026, were $968.58 million compared to total liabilities of $981.79 million on December 31, 2025. Total deposits were $917.36 million on March 31, 2026, compared to total deposits of $914.26 million on December 31, 2025. Non-interest-bearing demand deposits decreased by $178 thousand during the first quarter and comprised 16.28% of total deposits at the end of the first quarter. Other core interest-bearing demand deposits decreased by $31.8 million and core time deposits decreased by $2.3 million during the quarter. Brokered Deposits increased by $37.4 million while Federal Home Loan Bank borrowings decreased by $20.0 million.

Stockholders' Equity and Capital
Stockholders' equity as of March 31, 2026, was $84.25 million compared to $84.14 million on December 31, 2025. AOCI decreased during the first quarter as there was an increase in unrealized losses on available-for-sale securities due to rising interest rates in the quarter. The tangible book value of the Company's common stock on March 31, 2026, was $12.08 per share compared to $12.05 on December 31, 2025. Excluding AOCI losses/gains5, the tangible book value of the Company's common stock on March 31, 2026, was $14.18 per share compared to $14.08 on December 31, 2025.

Stock Buyback Program
In the first quarter, the Company purchased 43,800 shares pursuant to its previously announced share repurchase program.  As of March 31, 2026, the Company had repurchased 43,800 of the 250,000 shares currently authorized for repurchase under the program that was approved at the end of 2025. The Company purchased 29,400 shares in the fourth quarter of 2025 under its previous authorized program. Our Board of Directors continues to believe that the share buyback program represents a disciplined capital management strategy for the Company. 

Capital Ratios
As of March 31, 2026, the Bank's capital ratios were well above regulatory minimum capital ratios for well-capitalized bank holding companies. The Bank's capital ratios as of March 31, 2026, and December 31, 2025, were as follows:

March 31, 2026

December 31, 2025

Total Capital Ratio

14.42 %

15.08 %

Tier 1 Capital Ratio

13.50 %

13.82 %

Common Equity Tier 1 Capital Ratio

13.50 %

13.82 %

Leverage Ratio

10.70 %

11.05 %

About Freedom Financial Holdings, Inc.

Freedom Financial Holdings, Inc. is the holding company of The Freedom Bank of Virginia, a community bank with locations in Fairfax, Reston, Chantilly, Vienna, Tysons Corner, and Manassas, Virginia. For information about deposits, loans and other services, visit the website at www.freedom.bank.

Forward Looking Statements

This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates, and expectations include: fluctuation in market rates of interest and loan and deposit pricing; general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and in which its loans are concentrated, including the effects of declines in real estate values, increases in unemployment levels, inflation, recessions and slowdowns in economic growth, including as a result of the impact of geopolitical conflicts, such as the war between Russia and Ukraine; the impact of any U.S. federal government shutdown; U.S. and global trade policies and changes, including the impact of the imposition of or changes in tariffs and trade barriers; adverse developments in the financial services industry such as the bank failures in 2023; maintenance and development of well-established and valued client relationships and referral source relationships; the adequacy or inadequacy of our allowance for credit losses; acquisition or loss of key production personnel; and the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, wars, terrorist acts or public health events, and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on incidents of cyberattack and fraud, on the Company's liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth. The Company cautions readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and the Company may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.

FREEDOM FINANCIAL HOLDINGS

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Audited)

March 31,

December 31,

2026

2025

ASSETS

Cash and Due from Banks

$                               4,527,248

$                                4,540,452

Interest Bearing Deposits with Banks

33,646,083

70,078,398

Securities Available-for-Sale

156,852,319

158,446,651

Securities Held-to-Maturity

18,242,410

19,242,952

Restricted Stock Investments

4,468,100

5,435,300

Loans Held for Sale

12,077,102

4,283,305

PPP Loans Held for Investment 

112,661

117,738

Other Loans Held for Investment 

770,827,073

762,435,469

Allowance for Credit Losses

(7,696,395)

(13,897,689)

Net Loans

775,320,441

752,938,823

Bank Premises and Equipment, net

1,189,003

728,030

Accrued Interest Receivable

4,463,908

4,059,501

Deferred Tax Asset

7,579,833

7,428,794

Bank-Owned Life Insurance

28,700,809

28,469,911

Right of Use Asset, net

5,657,815

1,582,514

Other Assets

12,178,246

12,931,701

Total Assets

$                       1,052,826,215

$                        1,065,883,027

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

-

Demand Deposits

Non-interest Bearing

$                           149,338,747

$                           149,516,366

Interest Bearing

548,420,087

555,799,698

Savings Deposits

2,289,866

1,989,696

Time Deposits

217,315,240

206,958,024

Total Deposits

917,363,940

914,263,784

Federal Home Loan Bank Advances

20,000,000

40,000,000

Other Borrowings

112,661

117,737

Subordinated Debt (Net of Issuance Costs)

19,948,049

19,928,568

Accrued Interest Payable

$                                   887,034

913,813

Lease Liability

5,878,842

1,666,836

Other Liabilities

4,385,636

4,852,310

Total Liabilities

$                           968,576,162

$                           981,743,048

Stockholders' Equity

Preferred stock, $0.01 par value, 5,000,000 shares authorized:

0 Shares Issued and Outstanding, March 31, 2026 and
December 31, 2025

Common Stock, $0.01 Par Value, 25,000,000 Shares:

23,000,000 Shares Voting and 2,000,000 Shares Non-voting.

Voting Common Stock:

6,973,747 and 6,984,013 Shares Issued and Outstanding
    at March 31, 2026 and December 31, 2025 respectively

69,737

69,840

Non-Voting Common Stock:

-

-

0 Shares Issued and Outstanding at March 31, 2026 and
December 31, 2025
respectively)

Additional Paid-in Capital 

56,029,673

56,624,236

Accumulated Other Comprehensive Income, Net

(14,645,539)

(14,189,941)

Retained Earnings

42,796,182

41,635,844

Total Stockholders' Equity

84,250,053

84,139,979

 Total Liabilities and Stockholders' Equity

$                       1,052,826,215

$                        1,065,883,027

FREEDOM FINANCIAL HOLDINGS

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Unaudited)

For the three

For the three

months ended

months ended

March 31, 2026

March 31, 2025

Interest Income

Interest and Fees on Loans

$                                11,276,251

$                               12,703,493

Interest on Investment Securities

1,773,078

2,613,258

Interest on Deposits with Other Banks

703,390

262,507

Total Interest Income

13,752,719

15,579,258

Interest Expense

Interest on Deposits

6,340,041

6,946,194

Interest on Borrowings

517,291

913,154

Total Interest Expense

6,857,332

7,859,348

Net Interest Income

6,895,387

7,719,910

Provision/(Recovery) for Loan Losses

59,336

(284,683)

Net Interest Income After

Provision for Loan Losses

6,836,051

7,435,227

Non-Interest Income

Mortgage Loan Gain-on-Sale and Fee Revenue

942,257

654,530

 SBA Gain-on-Sale Revenue

-

-

Service Charges and Other Income

220,740

70,334

 Servicing Income

17,493

32,442

Increase in Cash Surrender Value of Bank-

owned Life Insurance

230,899

220,864

Total Non-interest Income

1,411,389

978,170

Total Revenue

8,306,776

8,698,080

Non-Interest Expenses

Officer and Employee Compensation
    and Benefits

4,403,621

3,769,535

Occupancy Expense

364,940

242,163

Equipment and Depreciation Expense

10,712

8,726

Insurance Expense

206,599

225,766

Professional Fees

346,305

470,310

Data and Item Processing

530,962

538,213

Advertising  

81,600

83,115

Franchise Taxes and State Assessment Fees

326,569

314,214

Mortgage Fees and Settlements

74,839

87,258

Other Operating Expense

455,395

281,611

Total Non-interest Expenses

6,801,542

6,020,911

Income Before Income Taxes

1,445,898

2,392,486

Income Tax Expense/(Benefit)

285,560

373,138

Net Income (Loss)

1,160,338

2,019,348

Earnings (Loss) per Common Share - Basic

$                                            0.16

$                                            0.28

Earnings (Loss) per Common Share - Diluted

$                                            0.16

$                                            0.28

Weighted-Average Common Shares

Outstanding - Basic

7,104,820

7,136,456

Weighted-Average Common Shares 

Outstanding - Diluted

7,174,318

7,193,284

FREEDOM FINANCIAL HOLDINGS

CONSOLIDATED STATEMENTS OF OPERATIONS 

(Unaudited)

(Audited)

(Unaudited)

(Unaudited)

(Unaudited)

For the three

For the three

For the three

For the three

For the three

months ended

months ended

months ended

months ended

months ended

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Interest Income

Interest and Fees on Loans

$                        11,276,251

$                            11,337,250

$                            11,671,310

$                 11,673,927

$                    12,703,493

Interest on Investment Securities

$                          1,773,078

$                              2,224,322

$                              2,307,732

2,450,914

2,613,258

Interest on Deposits with Other Banks

$                             703,390

$                                 214,396

$                                 507,622

750,610

262,507

Total Interest Income

13,752,719

13,775,968

14,486,664

14,875,451

15,579,258

Interest Expense

Interest on Deposits

$                          6,340,041

$                              6,260,656

7,036,552

7,275,073

6,946,194

Interest on Borrowings

$                             517,291

$                                 818,943

701,474

724,216

913,154

Total Interest Expense

6,857,332

7,079,599

7,738,026

7,999,289

7,859,348

Net Interest Income

6,895,387

6,696,369

6,748,638

6,876,162

7,719,910

Provision/(Recovery) for Loan Losses

$                               59,336

$                              6,941,897

496,824

688,865

284,683

Net Interest Income After

Provision for Loan Losses

6,836,051

(245,528)

6,251,814

6,187,297

7,435,227

Non-Interest Income

Mortgage Loan Gain-on-Sale and Fee Revenue

942,257

680,766

718,684

797,759

654,530

 SBA Gain-on-Sale Revenue

-

-

-

-

-

Service Charges and Other Income

$                             220,740

$                                 246,568

453,981

270,230

70,334

 Servicing Income

17,493

18,303

19,060

21,045

32,442

Increase in Cash Surrender Value of Bank-

owned Life Insurance

230,899

233,820

231,549

223,061

220,864

Total Non-interest Income

1,411,389

1,179,457

1,423,274

1,312,095

978,170

Total Revenue

8,306,776

7,875,826

8,171,912

8,188,257

$                      8,698,080

Non-Interest Expenses

Officer and Employee Compensation

and Benefits

$                          4,403,621

$                              3,562,780

4,067,037

3,752,761

3,769,535

Occupancy Expense

$                             364,940

$                                 239,846

246,378

244,279

242,163

Equipment and Depreciation Expense

$                               10,712

$                                   12,898

16,039

16,619

8,726

Insurance Expense

$                             206,599

$                                 126,852

244,170

220,346

225,766

Professional Fees

$                             346,305

$                                 375,040

291,975

559,904

470,310

Data and Item Processing

$                             530,962

$                                 523,717

540,506

595,492

538,213

Advertising 

$                               81,600

$                                   63,476

112,566

151,676

83,115

Franchise Taxes and State Assessment Fees

$                             326,569

$                                 324,569

334,422

314,444

314,214

Mortgage Fees and Settlements

74,839

70,037

106,266

99,819

87,258

Other Operating Expense

$                             455,395

$                                 315,610

368,343

396,213

281,611

Total Non-interest Expenses

6,801,542

5,614,825

6,327,702

6,351,552

6,020,911

Income Before Income Taxes

1,445,898

(4,680,896)

1,347,386

1,147,840

2,392,486

Income Tax Expense/(Benefit)

285,560

(1,112,923)

224,456

347,943

373,138

Net Income (Loss)

$                          1,160,338

$                            (3,567,973)

$                              1,122,930

$                      799,897

$                      2,019,348

Earnings (Loss) per Common Share - Basic

$                                    0.16

$                                      (0.50)

$                                        0.16

$                             0.11

$                                0.28

Earnings (Loss) per Common Share - Diluted

$                                    0.16

$                                      (0.50)

$                                        0.16

$                             0.11

$                                0.28

Weighted-Average Common Shares

Outstanding - Basic

7,104,820

7,121,482

7,134,446

7,137,779

7,283,696

Weighted-Average Common Shares

Outstanding - Diluted

7,174,318

7,183,791

7,184,688

7,140,491

7,285,900

Average Balances, Income and Expenses, Yields and Rates

(Unaudited)

Three Months Ended

Three Months Ended

Three Months Ended

Three Months Ended

Three Months Ended

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Average Balance

Income/ Expense

Yield

Average Balance

Income/ Expense

Yield

Average Balance

Income/ Expense

Yield

Average Balance

Income/ Expense

Yield

Average Balance

Income/ Expense

Yield

Assets

Cash

$78,256,733

$703,390

3.65 %

$23,427,239

$214,395

3.63 %

$46,853,763

$507,622

4.30 %

$65,570,216

$      750,611

4.59 %

$                36,901,243

$       262,507

2.89 %

Investments (Tax Exempt)

$19,983,529

$150,924

3.06 %

$20,215,951

$154,645

3.03 %

$19,928,687

$155,780

3.10 %

$19,843,159

156,555

3.18 %

20,214,201

157,089

3.07 %

Investments (Taxable)

$161,336,487

$1,622,154

4.08 %

$188,641,324

$2,069,677

4.35 %

$193,341,006

$2,151,952

4.42 %

$204,066,557

2,294,359

4.52 %

212,629,949

2,456,170

4.47 %

Total Investments

$181,320,016

$1,773,078

3.97 %

208,857,275

2,224,322

4.23 %

213,269,693

2,307,732

4.29 %

$223,909,716

2,450,914

4.39 %

232,844,150

2,613,258

4.55 %

Total Loans 

$766,481,826

$11,276,251

5.97 %

$752,172,975

$11,337,250

5.98 %

$744,905,635

$11,671,310

6.22 %

$755,231,852

11,673,926

6.20 %

764,147,542

$12,703,493

6.74 %

Earning Assets

$1,026,058,575

$13,752,719

5.44 %

984,457,489

$13,775,967

5.55 %

1,005,029,091

$14,486,664

5.72 %

$1,044,711,785

14,875,451

5.73 %

1,033,892,386

15,579,258

6.11 %

Assets

$1,075,063,057

$1,160,338

0.44 %

$1,036,072,664

(3,567,973)

-1.37 %

$1,058,353,304

1,122,930

0.42 %

$1,100,110,176

799,897

0.29 %

$          1,083,851,440

2,019,348

0.76 %

Liabilities

Interest Checking

$139,199,596

$872,499

2.54 %

$151,579,307

$934,090

2.44 %

$127,149,614

$998,124

3.11 %

$125,175,008

$      979,587

3.13 %

$              211,572,944

$       929,609

1.78 %

Money Market

$314,492,661

$2,346,245

3.03 %

$297,707,680

$2,468,165

3.29 %

$320,887,145

$2,722,629

3.37 %

$396,798,385

3,620,383

3.65 %

259,289,920

1,924,822

3.01 %

Savings

$2,092,200

$1,087

0.21 %

$1,973,024

$1,045

0.21 %

$2,415,353

$1,051

0.17 %

$6,727,490

1,503

0.09 %

4,398,923

1,178

0.11 %

Time Deposits 

$334,036,792

$3,120,209

3.79 %

$285,497,039

$2,857,356

3.97 %

$317,448,404

$3,314,747

4.14 %

$272,467,884

2,673,600

3.93 %

294,336,342

4,090,584

5.64 %

Interest Bearing Deposits

$789,821,247

$6,340,041

3.26 %

736,757,050

$6,260,656

3.37 %

767,900,516

$7,036,551

3.64 %

$801,168,767

7,275,073

3.63 %

769,598,129

6,946,193

3.66 %

Borrowings

$55,160,259

$       517,291

3.80 %

$76,844,331

$818,943

4.23 %

$61,329,539

$701,474

4.54 %

$63,255,808

$      724,216

4.59 %

$                78,341,429

$       913,154

4.73 %

Interest Bearing Liabilities

$844,981,507

$    6,857,332

3.29 %

813,601,381

$7,079,599

3.45 %

829,230,055

$7,738,025

3.70 %

$864,424,575

7,999,289

3.71 %

847,939,558

7,859,347

3.76 %

Non Interest Bearing Deposits

$              135,220,445

$              125,385,868

$              133,933,651

$140,837,354

$              139,885,803

Cost of Funds

2.84 %

2.99 %

3.19 %

3.19 %

3.23 %

Net Interest Margin

$1,026,058,575

$6,895,388

2.73 %

$    6,696,368

2.70 %

$    6,748,638

2.66 %

$   6,876,162

2.66 %

$    7,719,911

3.03 %

Selected Financial Data by Quarter Ended:

(Unaudited)

Balance Sheet Ratios

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Loans held-for-investment to Deposits 

84.04 %

83.41 %

86.72 %

80.83 %

82.65 %

Income Statement Ratios (Quarterly)

Return on Average Assets (ROAA)

0.44 %

-1.37 %

0.42 %

0.29 %

0.76 %

Return on Average Equity (ROAE)

5.57 %

-15.96 %

5.57 %

3.97 %

9.95 %

Efficiency Ratio

81.88 %

71.29 %

77.43 %

77.57 %

69.22 %

Net Interest Margin

2.73 %

2.70 %

2.66 %

2.66 %

3.03 %

Yield on Average Earning Assets

5.44 %

5.55 %

5.72 %

5.73 %

6.11 %

Yield on Securities

3.97 %

4.23 %

4.29 %

4.39 %

4.55 %

Yield on Loans

5.97 %

5.98 %

6.22 %

6.20 %

6.74 %

Cost of Funds

2.84 %

2.99 %

3.19 %

3.19 %

3.23 %

Noninterest income to Total Revenue

16.99 %

14.98 %

17.42 %

16.02 %

11.25 %

Liquidity Ratios

Uninsured Deposits to Total Deposits

27.11 %

29.43 %

24.51 %

22.51 %

22.50 %

Total Liquidity to Uninsured Deposits

117.18 %

130.31 %

136.91 %

167.83 %

122.33 %

Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days

206.16 %

251.78 %

209.14 %

252.65 %

292.23 %

Tangible Common Equity Ratio 

8.00 %

7.91 %

8.45 %

7.85 %

7.68 %

Tangible Common Equity Ratio (adjusted for unrealized losses on HTM securities)

7.82 %

7.76 %

8.27 %

7.64 %

7.50 %

Available -for-Sale securities (as % of total securities)

89.58 %

89.17 %

90.64 %

90.87 %

91.12 %

Per Share Data

Tangible Book Value

$12.08

$12.05

$12.45

$12.01

$11.87

Tangible Book Value (ex AOCI)

$14.18

$14.08

$14.58

$14.39

$14.26

Share Price Data

Closing Price

$11.90

$11.83

$11.52

$11.26

$9.90

Book Value Multiple

99 %

98 %

93 %

94 %

83 %

Common Stock Data

Outstanding Shares at End of Period

6,973,747

6,984,013

7,002,103

7,002,103

7,002,103

Weighted Average shares outstanding, basic

7,104,820

7,136,456

7,134,446

7,137,779

7,283,696

Weighted Average shares outstanding, diluted

7,174,318

7,193,284

7,184,688

7,140,491

7,285,900

Capital Ratios (Bank Only)

Tier 1 Leverage ratio

10.70 %

11.05 %

11.23 %

10.66 %

10.76 %

Common Equity Tier 1 ratio

13.50 %

13.82 %

14.64 %

14.30 %

14.14 %

Tier 1 Risk Based Capital ratio

13.50 %

13.82 %

14.64 %

14.30 %

14.14 %

Total Risk Based Capital ratio

14.42 %

15.08 %

15.53 %

15.20 %

14.95 %

Credit Quality

Net Charge-offs to Average Loans

0.81 %

0.03 %

0.13 %

0.01 %

0.03 %

Total Non-performing Loans to loans held-for-investment

2.46 %

3.51 %

2.30 %

1.45 %

1.45 %

Total Non-performing Assets to Total Assets

1.95 %

2.51 %

1.65 %

0.98 %

1.01 %

Nonaccrual Loans to loans held-for-investment

2.50 %

3.51 %

2.30 %

1.45 %

1.45 %

Provision for Loan Losses

$59,336

$6,941,897

$496,824

$688,865

$284,683

Allowance for Loan Losses to Loan held-for-investment

1.00 %

1.82 %

0.96 %

0.96 %

0.88 %

Allowance for Loan Losses to Loans held-for-investment (ex PPP loans)

1.00 %

1.82 %

0.96 %

0.96 %

0.88 %

FREEDOM FINANCIAL HOLDINGS, INC.

CONSOLIDATED SELECTED FINANCIAL DATA

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Quarter Ending

1Net Interest Margin

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Average Earning Assets

$1,026,058,575

$           984,457,489

$                           1,005,029,091

$        1,044,711,785

$       1,033,892,386

Yield on Interest Earning Assets (GAAP)

5.44 %

5.55 %

5.72 %

5.73 %

6.11 %

Net Interest Margin (NIM) (GAAP)

2.73 %

2.70 %

2.66 %

2.66 %

3.03 %

2Efficiency Ratio (Non-GAAP)

 Quarter Ending

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Net Interest Income

$              6,895,387

$               6,696,369

$                                  6,748,638

$               6,876,162

$              7,719,910

Non-Interest Income

1,411,389

1,179,457

$                                  1,423,274

1,312,095

978,170

Total Revenue

$              8,306,776

$               7,875,826

$                                  8,171,912

$               8,188,257

$              8,698,080

Non-Interest Expense

6,801,542

5,614,825

$                                  6,327,702

6,351,552

6,020,911

Efficiency Ratio (Non-GAAP)

81.88 %

71.29 %

77.43 %

77.57 %

69.22 %

3Liquidity Ratios (Non-GAAP)

Quarter Ending

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Available-for-Sale Securities (as % of total securities)

89.58 %

89.17 %

90.64 %

90.87 %

91.12 %

Uninsured Deposits to Total Deposits

27.11 %

29.43 %

24.51 %

22.51 %

22.50 %

Total Liquidity to Uninsured Deposits

117.18 %

130.31 %

136.91 %

167.83 %

122.33 %

Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days

206.16 %

251.78 %

209.14 %

252.65 %

292.23 %

Tangible Common Equity Ratio

8.00 %

7.91 %

8.45 %

7.85 %

7.68 %

Tangible Common Equity Ratio(adjusted for unrealized losses 

7.82 %

7.76 %

8.27 %

7.64 %

7.50 %

on HTM Securities)

3Total Liquidity is the sum of cash, cash balances at banks, unencumbered available-for-sale securities and secured borrowing availability at the Federal Reserve and the Federal Home Loan Bank.

4Total Revenue (Non-GAAP)

Quarter Ending

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Net Interest Income

$              6,895,387

$               6,696,369

$                                  6,748,638

$               6,876,162

$              7,719,910

Non-Interest Income

1,411,389

1,179,457

1,423,274

1,312,095

978,170

Total Revenue (non-GAAP)

$              8,306,776

$               7,875,826

$                                  8,171,912

$               8,188,257

$              8,698,079

5Tangible Book Value (ex-AOCI) (non-GAAP)

Quarter Ending

March 31, 2026

December 31, 2025

September 30, 2025

June 30, 2025

March 31, 2025

Shareholder's Equity

$            84,250,053

$             84,139,979

$                                87,193,193

$             84,123,510

$            83,134,747

Outstanding Shares at End of Period

6,973,747

6,984,013

7,002,103

7,002,103

7,002,103

Tangible Book Value (GAAP)

$                     12.08

$                      12.05

$                                         12.45

$                      12.01

$                     11.87

Accumulated Other Comprehensive Income (Net) (AOCI)

$          (14,645,539)

$           (14,189,941)

$                               (14,881,004)

$           (16,657,368)

$          (16,748,443)

AOCI per share equivalent

(2.10)

(2.03)

(2.13)

(2.38)

(2.39)

Tangible Book Value (ex-AOCI) (non-GAAP)

$                     14.18

$                      14.08

$                                         14.58

$                      14.39

$                     14.26

Contact:
Scott Clark
Senior Executive Vice President & Chief Financial Officer
Phone: 703-667-4119
Email: [email protected]

SOURCE Freedom Financial Holdings

In this article, we will discuss why financial independence is important, not just for retirees but for anyone aspiring for a stress-free and secure financial life. We present a buy-and-hold, easy-to-maintain portfolio formed with only nine funds. The portfolio is income-focused and is diversified in termsof strategies and asset classes, and likely to provide market-matchinggrowth. We will also demonstrate that if you invest a reasonable sum today inincome-growing funds, it takes roughly 10-12 years to potentially generate$5,000 of monthly income.

Vancouver B.C., May 19, 2026 (GLOBE NEWSWIRE) -- TERRA CLEAN ENERGY CORP. (“Terra” or the “Company”) (CSE: TCEC, OTCQB: TCEFF, FSE: C9O0) is pleased to announce highly encouraging initial results from recently completed airborne radiometric and Photogrammetric surveys at its Prospector Freedom Uranium Property in Piute County, Utah (the “Prospector Freedom Project”). The Company has also mobilized preparations for an extensive summer exploration program designed to rapidly advance the project toward drill-ready targets.

The Prospector Freedom Project is located within a historically productive uranium district that has produced approximately 1.33 Mlbs U3O8 at reported average grades of 0.22% * and benefited from extensive historical exploration activity. Previous operators reported strong uranium grades and continuity along multiple mineralized trends, underscoring the district-scale potential for additional discoveries and future resource expansion.

Multiple High-Priority Uranium Targets Identified

The integrated airborne survey program was completed across the Company’s newly expanded 380-acre land package and has successfully identified several high-priority exploration zones exhibiting characteristics consistent with structurally controlled vein-style uranium mineralization.  The survey was conducted by Land Survey Advisors of Heber City, Utah using a DJI Matrice 400 RTK quadcopter using terrain following and equipped with a Georadis D230A gamma ray spectrometer and a Zenmuse P1 45-megapixel mapping camera.  

The radiometric survey outlined numerous discrete uranium anomalies associated with favorable host lithologies and established regional mineralized trends. These anomalies are interpreted as potential near-surface uranium-bearing zones and represent compelling follow-up targets for the Company’s upcoming field program.

Figure 1:  Uranium radiometric data draped over 3D terrain.

Click here to view image

In parallel, the Photogrammetric survey delivered high-resolution 3D digital topographic data and 2D orthomosaic photographs over the property.  This information has aided in identifying terrain features and shading which may represent alteration corridors and spatially coincide with the identified radiometric anomalies.  This is valuable for the development of a 3D model of the property and will aid significantly in drill planning and targeting,  significantly strengthening Terra’s confidence in the exploration targets.

Figure 2: High resolution photomosaic draped over 3D terrain showing high detail of ground features.

Click here to view image

“The combination of radiometric and Photogrammetric data has materially advanced our understanding of the Prospector Freedom Project,” stated Greg Cameron, CEO of Terra . “We are especially encouraged by the strong correlation between radiometric anomalies and terrain features identified. This integrated dataset has generated several compelling drill targets and provides a strong foundation for the next phase of exploration.”

Strategic Expansion of the Property Position

Earlier this year, Terra strategically expanded the Prospector Freedom Project through the staking of an additional 14 Bureau of Land Management (“BLM”) lode claims surrounding the original six claims, substantially increasing the Company’s footprint to 380 acres within this highly prospective historical uranium district.  The expanded land package was assembled following detailed historical data compilation and regional geological interpretation, securing additional prospective ground believed to host favorable uranium mineralization.

“We are excited with the data provided through these surveys”, commented Trevor Perkins, VP Exploration of Terra.  “When combined with the digital dataset we continue to compile for the property, numerous targets have been identified for follow-up and potential drilling, with the ultimate goal of a 3D model and resource estimate on the horizon”, continued Mr. Perkins.

Summer Exploration Program & Drill Permitting Underway

Building on the positive survey results, Terra is now advancing a targeted summer exploration program that will include:

- Ground-truthing of airborne anomalies
- Detailed geological mapping
- Geochemical sampling
- Structural interpretation and target refinement
- Advancement of priority drill targets

Drill permitting is actively underway. Land Survey Advisors of Heber City, Utah, has been engaged to finalize permitting with the U.S. Bureau of Land Management and the Utah Division of Oil, Gas and Mining.

All exploration activities are being conducted in accordance with applicable regulatory requirements and industry best practices. Terra remains committed to responsible exploration and environmental stewardship as it advances the Prospector Freedom Project.

About Terra Clean Energy Corp.

Terra Clean Energy Corp. is a Canadian-based uranium exploration and development company. The Company is currently developing the South Falcon East uranium project located in the Athabasca Basin region, Saskatchewan, Canada as well as past producing uranium mines in Utah and uranium exploration properties in Wyoming, United States.  The Company’s strategy is to find and advance late stage uranium projects to support growing demand for Nuclear Power and secure domestic mineral supply chains.

ON BEHALF OF THE BOARD OF TERRA CLEAN ENERGY CORP.

“Greg Cameron”
Greg Cameron, CEO

Qualified Person

*The historical results, production, and interpretation described here in have not been verified and are extracted from US Geological Survey reports.  The Company has not completed sufficient work to confirm and validate any of the historical data contained in this news release. The historical work does not meet NI 43-101 standards.  The Company considers the historical work a reliable indication of the potential of the Marysvale Uranium District and the information may be of assistance to readers. 

Gruner, J.W., Fetzer, W.G., and Rapaport, I., 1951, The Uranium Deposits near Marysvale, Piute County, Utah, Economic Geology Vol 46 No 3, pp. 243-251.

Steven, T.A., Cunningham, C. G., Naeser, C.W., and Mehnert, H.H., 1979, Revised stratigraphy and radiometric ages of volcanic rocks in the Marysvale area, west-central Utah: U.S. Geological Survey Bulletin 1469, 40 p.

The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101, reviewed and approved on behalf of the company by C. Trevor Perkins, P.Geo., the Company’s Vice President, Exploration, and a Qualified Person as defined by National Instrument 43-101.

Forward-Looking Information

This news release contains certain statements that may be deemed “forward-looking statements”. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Forward-looking statements may include, without limitation, statements relating to the Company’s planned exploration activities on properties and the potential development of mineral resources and mineral reserves which may or may not occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to: competition within the industry; actual results of current exploration activities; environmental risks; changes in project parameters as plans continue to be refined; future price of commodities; failure of equipment or processes to operate as anticipated; accidents, and other risks of the mining industry; delays in obtaining approvals or financing; risks related to indebtedness and the service of such indebtedness; as well as those factors, risks and uncertainties identified and reported in the Company’s public filings under the Company’s SEDAR+ profile at www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are made as of the date hereof and, accordingly, are subject to change after such date. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

For further information please contact:

Greg Cameron, CEO
[email protected]
416-277-6174

Terra Clean Energy Corp
1133 Melville Street, Suite 2700
Vancouver, BC V6E 4E5
www.tcec.energy

-

Facility expansion positions AV to scale production, accelerate fielding, and provide cost-effective defense against mass aerial threats

ARLINGTON, Va.--(BUSINESS WIRE)--AeroVironment, Inc. (“AV”) (NASDAQ: AVAV), a global defense technology leader, today announced an additional government investment of $20.2 million in AV's Huntsville, Alabama facility to increase quantities of Low-Rate Initial Production (LRIP) and accelerate future Full-Rate Production (FRP) of the Next-Generation Counter-Unmanned Aircraft System Missile (NGCM), known as Freedom Eagle-1 (FE-1).

The expanded site will serve as the system-level integration, manufacturing, and production hub for FE-1, enabling rapid scale-up of interceptor production and accelerated delivery timelines to meet urgent U.S. Army and Combatant Command operational needs.

Share The expanded site will serve as the system-level integration, manufacturing, and production hub for FE-1, enabling rapid scale-up of interceptor production and accelerated delivery timelines to meet urgent U.S. Army and Combatant Command operational needs.

The 24,000-square-foot expansion and associated job growth in Huntsville reflect AV’s continued investment in meeting evolving national security demands for subsonic missiles while strengthening cost-effective production capacity, driving innovation, and supporting on-time delivery.

“Growing our presence in Huntsville places AV more firmly at the center of the Army’s air and missile defense ecosystem, enabling tighter integration, faster iteration, and more efficient production at scale,” said Wahid Nawabi, Chairman, President and Chief Executive Officer at AV. “That proximity is critical as we begin production of Freedom Eagle-1, a system designed to deliver a scalable, cost-effective response to increasingly complex and high-volume aerial threats.”

The investment builds on AV’s recent selection and $95.9 million contract award under the U.S. Army’s NGCM and Long-Range Kinetic Interceptor (LRKI) programs, executed through the U.S. Army Combat Capabilities Development Command Aviation & Missile Center (CCDC AvMC) and the Aviation & Missile Technology Consortium (AMTC), and marks the next phase in transitioning Freedom Eagle-1 from development to scaled production and operational fielding.

In March, AV announced a $97 million contract to design and integrate prototype test environments for next-generation missile defense sensor testing at Redstone Arsenal — a Huntsville-based federal center that is home to more than 70 organizations, including NASA, the FBI, Missile Defense Agency, Army Program Acquisition Executive Fires, and the future U.S. Space Command headquarters.

“This expansion is a critical step in scaling production of Freedom Eagle-1 and accelerating its delivery to the field,” said Jimmy Jenkins, Executive Vice President of AV’s Precision Strike and Defense Systems Group. “By increasing manufacturing capacity, strengthening integration, and enabling production at volume, we’re delivering a cost-effective interceptor designed to counter increasingly complex and high-volume aerial threats.”

Freedom Eagle-1 is designed to address these challenges with a combination of performance and affordability. The system is a low-cost, high-performance interceptor capable of neutralizing Groups 2 and 3 UAS while maintaining residual capability against Group 1 UAS, fixed-wing, and rotary-wing aircraft, with increased lethality, extended range, and rapid launch capabilities.

The system has achieved several key development milestones, including a successful live-fire demonstration of its dual-thrust solid rocket motor, controlled test vehicle launches, and warhead testing, demonstrating technical maturity and reduced risk as the program transitions toward field deployment.

"As the nation’s defense and security demands increase, it is crucial that we meet capability needs, and there is no better place for AV’s expansion as Alabama continues to lead in defense manufacturing and innovation," said Congressman Robert Aderholt (AL-04).

The expansion in Huntsville also reflects AV’s broader strategy to scale domestic manufacturing capacity, following a recent announcement of a $30 million expansion of its Albuquerque, New Mexico campus, a move that is expected to generate more than $670 million in economic impact over the next decade, create more than 450 high-wage jobs, and boost production of mission-critical defense and space technologies.

About AV

AeroVironment (“AV”) (NASDAQ: AVAV) is a defense technology leader delivering integrated capabilities across air, land, sea, space, and cyber. The Company develops and deploys autonomous systems, loitering munitions, counter-UAS technologies, space-based platforms, directed energy systems, and cyber and electronic warfare capabilities—built to meet the mission needs of today’s warfighter and tomorrow’s conflicts. At the core of these technologies lies AV_Halo™, a modular, mission-ready suite of AI-powered software tools that empowers warfighters and enables full-battlefield dominance: detect, decide, deliver. With a national manufacturing footprint and a deep innovation pipeline, AV delivers proven systems and future-defining capabilities at speed, scale, and operational relevance. For more information, visit www.avinc.com.

Safe Harbor Statement

Certain statements in this press release may constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties, which could cause actual results to differ materially. Factors that may cause such differences include, but are not limited to, our ability to perform under existing contracts and obtain new ones; regulatory changes; competitor activities; market growth; product development challenges; and general economic conditions. For a more detailed discussion of these risks, please refer to AeroVironment’s filings with the Securities and Exchange Commission. We undertake no obligation to update forward-looking statements as a result of new information or future events.

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ALMATY, Kazakhstan & NEW YORK--(BUSINESS WIRE)--Freedom Holding Corp. (the “Company”) (NASDAQ: FRHC), a multinational diversified financial services holding company with a presence in 22 countries, today reported financial results for fiscal year 2026, including revenue of $2.19 billion, and net income of $153.3 million for the 2026 fiscal year.

Year ended

Year ended

March 31, 2026

Total revenue, net

$2,191.3 million

$2,004.2 million

Income before income tax

$226 million

$104.6 million

Net income

$153.3 million

$76.2 million

Earnings per common share – basic

$2.56

$1.28

Earnings per common share – diluted

$2.51

$1.26

Fiscal Year ended March 31, 2026 Financial Overview
All comparisons are to the twelve months ended March 31, 2025 unless otherwise noted

The Company reported total revenue, net of $2,191.3 million, as compared to $2,004.2 million. The increase was primarily attributable to the following:

The Company’s net gain on trading securities was $158.8 million, an increase of $216.6 million, or 375%, primarily from sales of Kazakhstan sovereign and corporate debt securities. Sales of goods and services increased by $57.3 million, or 143%, to $97.4 million from $40.1 million, primarily the result of the Company’s expansion into the telecommunications sector and increased customer activity at Arbuz, online retail trade and e-commerce subsidiary. Net gain on derivatives was $66.8 million, an increase of $54.4 million, driven primarily by Freedom Bank KZ’s realized net gain of $40.9 million largely due to positive revaluation of currency swaps. Interest income was $882.5 million, an increase of $18.0 million, or 2%, primarily driven by increased margin loans to customers and continued expansion of Freedom Bank KZ's customer loan portfolio. Our net insurance revenue for fiscal 2026 was $402.4 million, representing a decrease of $168.8 million, or 29%, compared to fiscal 2025. This decrease was primarily driven by lower written insurance premiums, reflecting regulatory caps on agent commissions for bank and microfinance loan products, and by higher deferred profit liability issuance expense. Customer Growth

The Company’s bank customers approximately doubled from 2.52 million to 5.03 million and retail brokerage accounts increased to 858,000, from 683,000 in the prior year.

“Over the past few years, we have significantly expanded our customer base across brokerage, banking, and insurance by building a unified digital ecosystem,” said Timur Turlov, Freedom Chairman and CEO. “At the core of this growth is our SuperApp, which brings together essential financial services, including banking, insurance and lifestyle services in a single application.

“The addition of attractive loyalty and referral programs, improvement and further diversification of our offerings within our SuperApp during fiscal 2026 has further supported customer adoption, increasing overall engagement within the ecosystem. Our mission is to provide our customers with the most convenient, seamless, and beneficial experience possible, engaging them across a broad range of digital products, each offered on terms designed to deliver maximum value and ease of use.”

Freedom SuperApp

In March 2026, monthly active users (MAU) climbed to 2.59 million, up from 1.02 million in March 2025, an increase of 154% year over year, while daily active users (DAU) averaged 634,578 compared with 183,000 in March 2025.

Regional and Global Expansion

One of the Company’s strategic goals is to build a network of banks, brokers, and digital financial infrastructure that connects markets across Central Asia, the Caucasus, and beyond. In this regard, in March 2026, the Company entered into an agreement to purchase approximately 99.32% of Turkish Bank A.S., a bank operating in Türkiye. Subject to completion of the transaction, the Company expects this bank may serve as a core platform for its financial services operations in Türkiye. The Company also plans to establish a fully operational brokerage business in Türkiye, subject to obtaining the required license from the Turkish financial regulator.

External Social Projects

During fiscal year 2026, the Company continued to support sports, education, and culture in the communities where it operates, including:

Sports and chess — funding the Kazakhstan Chess Federation, hosting the World School Team Chess Championship and the "Chess in Education" Scientific Conference, launching construction of a football academy in Karaganda, sponsoring FC Zhenis and the youth teams of FC Shakhter, and supporting the inclusive "UNI FOOTBALL LEAGUE." Education — supporting "Teach for Qazaqstan," the Freedom Grants scholarship program, the IQanat Educational Fund, and student scholarships at Karagandy Buketov University. Culture — contributing to the renovation of Lermontov National Theatre in Almaty and the development of the Reception House in Astana. Additional highlights:

Banking

As of March 31, 2026, our Banking segment combined assets increased by 21% to $5,359.8 million, our loan portfolio increased by 29% to $2,045.3 million, our deposit portfolio increased by 46% to $2,522.8 million, and held-to-maturity securities increased by 552% to $429,423.

Insurance

Freedom Life recognized a net profit of approximately $32.9 million. As of March 31, 2026, Freedom Life held an approximately 7.4% market share in the Kazakhstan voluntary accident insurance and 19.3% of the pension annuity insurance segment in Kazakhstan, in each case according to the National Bank of Kazakhstan (NBK).

Freedom Insurance recognized net profit of approximately $10.8 million in fiscal year 2026. According to the NBK, as of March 31, 2026, Freedom Insurance had an approximately 6.55% share of the total Kazakhstan general insurance market based on total assets and had an approximately 14.53% share of the Kazakhstan car owners liability insurance market based on insurance premiums received.

Brokerage

As of March 31, 2026 and 2025, we had approximately 858,000 and 683,000 total brokerage customer accounts respectively, of which more than 56% and 63% respectively had positive cash or asset account balances.

Other

The Other segment accounted for $172.8 million, or 8%, of our total revenue, net for the fiscal year ended March 31, 2026, mainly derived from online retail trade and e-commerce services, provision of payment processing services, retail online ticket sales and online aggregation of purchasing air and railway tickets.

AI Data Center in Kazakhstan

In November 2025, we signed a non-binding memorandum of understanding with the Kazakhstan Ministry of AI and Digital Development and NVIDIA Corporation with a view to develop a large-scale AI data center in Kazakhstan. This prospective growth project is expected to be implemented in phases.

Employees

As of March 31, 2026, we had 11,846 (11,627 full-time and 219 part-time) employees spanning 22 countries in the following regions: Central Asia - 10,830, Europe - 334, Middle East - 627, USA - 55.

About Freedom Holding Corp.

Freedom Holding Corp., a Nevada corporation, is a diversified financial services holding company conducting retail securities brokerage, investment research, investment counseling, securities trading, investment banking and underwriting services, mortgages, insurance, and consumer banking through its subsidiaries, operating under the name Freedom Finance in Europe and Central Asia, and Freedom Capital Markets in the United States. Through its subsidiaries, Freedom Holding Corp. employs more than 11,000 people and is a professional participant in the Kazakhstan Stock Exchange, the Astana International Exchange, the Republican Stock Exchange of Tashkent, International Trading System Limited, Armenia Stock Exchange, Kyrgyz Stock Exchange, the Uzbek Republican Currency Exchange and is a member of the New York Stock Exchange and the Nasdaq Stock Exchange.

Freedom Holding Corp.'s common shares are registered under the United States Securities Exchange Act of 1934 and are traded under the symbol FRHC on the Nasdaq Capital Market, operated by Nasdaq, Inc. The Company has its main market of operations in Kazakhstan and has a presence in 22 countries.

To learn more about Freedom Holding Corp., visit www.freedomholdingcorp.com.

Cautionary Note Regarding Forward-Looking Statements

This release, and any related statements, contains "forward-looking" statements within the meaning of section 21E of the United States Securities Exchange Act of 1934. All forward-looking statements are subject to uncertainty and changes in circumstances. In some cases, forward-looking statements can be identified by terminology such as "expect," "new," "plan," "strategy," "mission, " "seek," and "will," or the negative of such terms or other comparable terminology and include statements relating to our plans, intentions and expectations, regional and global expansion including our plans related to Turkish Bank A.S. and establishment of a fully operational brokerage business in Türkiye, the memorandum of understanding relating to AI data center in Kazakhstan and other non-historical statements. Forward-looking statements are not guarantees of future results or performance and involve risks, assumptions, and uncertainties that could cause actual events or results to differ materially from the events or results described in, or anticipated by, the forward-looking statements. Factors that could materially affect such forward-looking statements include economic, business, and regulatory risks and other factors including those identified in under Risk Factors and elsewhere in the Company's periodic and current reports filed with the U.S. Securities and Exchange Commission. All forward-looking statements are made only as of the date of this release and the Company assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances. Readers should not place undue reliance on these forward-looking statements.

Website Disclosure

Freedom Holding Corp. intends to use its website, https://ir.freedomholdingcorp.com, as a means for disclosing material non-public information and for complying with U.S. Securities and Exchange Commission Regulation FD and other disclosure obligation.

FREEDOM HOLDING CORP.

CONSOLIDATED BALANCE SHEETS

(All amounts in thousands of United States dollars, unless otherwise stated)

  March 31, 2026

March 31, 2025
(Recasted)

ASSETS

Cash and cash equivalents

$

966,115

$

837,302

Restricted cash

1,246,312

807,468

Investment securities

3,342,561

2,814,733

Margin lending, brokerage and other receivables, net

4,690,782

3,319,145

Loans issued (including $21,321 and $188,445 to related parties)

2,077,606

1,595,435

Fixed assets, net

358,396

191,103

Intangible assets, net

73,319

54,186

Goodwill

51,099

49,093

Right-of-use asset

47,579

39,828

Insurance contract assets

36,849

37,183

Other assets, net (including $40,119 and $18,080 with related parties)

264,621

169,641

TOTAL ASSETS

$

13,155,239

$

9,915,117

LIABILITIES AND SHAREHOLDERS' EQUITY

Securities repurchase agreement obligations

$

1,024,923

$

1,418,443

Customer liabilities

7,103,984

4,304,999

Margin lending and trade payables

689,641

1,322,241

Insurance contract liabilities

653,907

472,433

Current income tax liability

43,701

28,919

Debt securities issued

1,261,120

469,551

Lease liability

48,843

40,525

Liability arising from continuing involvement

554,594

503,705

Other liabilities

285,247

129,737

TOTAL LIABILITIES

$

11,665,960

$

8,690,553

Commitments and Contingent Liabilities (Note 29)

—

—

SHAREHOLDERS' EQUITY

Preferred stock - $0.001 par value; $20,000,000 shares authorized, no shares issued or outstanding

—

—

Common stock - $0.001 par value; 500,000,000 shares authorized; 61,292,581 and 60,993,949 shares issued and outstanding as of March 31, 2026 and March 31, 2025, respectively

61

61

Additional paid in capital

314,657

246,610

Retained earnings

1,231,500

1,078,172

Accumulated other comprehensive loss

(56,939

)

(100,396

)

TOTAL FRHC SHAREHOLDERS' EQUITY

$

1,489,279

$

1,224,447

Non-controlling interest

—

117

TOTAL SHAREHOLDERS' EQUITY

$

1,489,279

$

1,224,564

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

13,155,239

$

9,915,117

The accompanying notes are an integral part of these consolidated financial statements

Years ended March 31,

2026

2025 (Recasted)

2024 (Recasted)

Revenue:

Fee and commission income (including $7,680, $4,725 and $65,972 from related parties)

$

489,765

$

505,026

$

440,333

Net gain/(loss) on trading securities

158,824

(57,810

)

133,854

Interest income (including $12,703, $1,731 and $24,941 from related parties)

882,478

864,453

828,224

Net insurance revenue

402,396

571,224

245,122

Net gain on foreign exchange operations

67,680

51,684

72,245

Net gain/(loss) on derivatives

66,772

12,404

(103,794

)

Sales of goods and services

97,446

40,102

21,576

Other income

25,930

17,072

9,696

TOTAL REVENUE, NET

2,191,291

2,004,155

1,647,256

Expense:

Fee and commission expense

218,565

346,502

154,716

Interest expense

489,036

535,895

501,111

Insurance claims and policyholder benefits, net of reinsurance

259,309

260,488

117,273

Payroll and bonuses

426,471

287,347

180,283

Professional services

46,258

28,924

34,238

Stock compensation expense

68,047

59,592

22,719

Advertising and sponsorship expense (including $27,151, $18,497, and $0 from related parties)

103,304

124,627

38,327

General and administrative expense

222,339

162,474

120,888

Allowance for expected credit losses

52,365

62,445

21,225

Cost of sales

79,632

31,278

17,538

TOTAL EXPENSE

1,965,326

1,899,572

1,208,318

INCOME BEFORE INCOME TAX

225,965

104,583

438,938

Income tax expense

(72,637

)

(28,425

)

(60,419

)

NET INCOME

153,328

76,158

378,519

Less: Net loss attributable to non-controlling interest in subsidiary

—

(129

)

(588

)

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

153,328

$

76,287

$

379,107

OTHER COMPREHENSIVE INCOME

Change in unrealized (loss)/gain on investments available-for-sale, net of tax effect

(4,771

)

4,364

6,196

Reclassification adjustment for net realized (gain)/loss on available-for-sale investments disposed of in the period, net of tax effect

(4,937

)

681

(3,209

)

Change in discount rate on liability for future policy benefits

(881

)

6,807

(4,811

)

Foreign currency translation adjustments

54,046

(104,102

)

12,075

OTHER COMPREHENSIVE INCOME/(LOSS)

43,457

(92,250

)

10,251

COMPREHENSIVE INCOME/(LOSS) BEFORE NON-CONTROLLING INTERESTS

$

196,785

$

(16,092

)

$

388,770

Less: Comprehensive loss attributable to non-controlling interest in subsidiary

—

(129

)

(588

)

COMPREHENSIVE INCOME/(LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS

$

196,785

$

(15,963

)

$

389,358

EARNINGS PER COMMON SHARE (In U.S. dollars):

Earnings per common share - basic

2.56

1.28

6.43

Earnings per common share - diluted

2.51

1.26

6.39

Weighted average number of shares (basic)

59,992,357

59,393,629

58,958,363

Weighted average number of shares (diluted)

61,117,931

60,490,564

59,362,982

The accompanying notes are an integral part of these consolidated financial statements.

More News From Freedom Holding Corp.

New York, United States, June 02, 2026 (GLOBE NEWSWIRE) -- Company advances international expansion and integrated financial, insurance, consumer and technology ecosystem strategy 

Freedom Holding Corp. (Nasdaq: FRHC), a multinational investment and technology company, today announced financial results for its fiscal year ended March 31, 2026. The company maintained a strong liquidity position and demonstrated the effectiveness of its diversified business model, which brings together financial services, insurance, consumer services and technology businesses within a single integrated ecosystem. 

For fiscal 2026, net income increased from $76.2 million to $153.3 million, representing growth of approximately 101% year over year. Total revenue, net reached a record $2.19 billion, compared with $2.00 billion in fiscal 2025. Since the company’s listing on Nasdaq in 2019, total revenue has increased more than 26 times. 

Freedom’s customer base continued to expand across key business lines. Brokerage customers increased from 683,000 to 858,000, while banking customers doubled from 2.52 million to 5.03 million. The insurance business served approximately 1.1 million customers, and the customer base across other business segments increased 83% to approximately 1.1 million. 

Fiscal 2026 Financial Highlights 

For the fiscal year ended March 31, 2026: 

Total revenue, net increased 9% to $2.19 billion, compared with $2.00 billion in fiscal 2025. Net income increased approximately 101% to $153.3 million, compared with $76.2 million in fiscal 2025. Interest income increased by $18.0 million to $882.5 million, up 2% compared with the prior year. Net gain on trading securities was $158.8 million, up $216.6 million, or 375%, primarily due to the sale of Kazakhstan corporate debt securities. Net gain on derivatives was $66.8 million, up $54.4 million, or 438%, primarily due to positive revaluation of foreign-currency swaps. Fee and commission income was $489.8 million, down $15.3 million, or 3%, primarily due to lower banking-service income. Net revenue from insurance activities decreased by 29% compared with the same period a year earlier, to $402.4 million. This was driven by changes in Kazakhstan’s legislation regarding borrowers’ life insurance and the payment of agency commissions to credit institutions. Revenue from goods and services increased by $57.3 million to $97.4 million, up 143%, primarily reflecting expansion into telecommunications following the acquisition of Freedom Cloud Holding. Total assets reached $13.16 billion as of March 31, 2026, up 33% from $9.92 billion at the end of the prior fiscal year. The increase was supported by growth in the company’s proprietary investment portfolio and higher customer balances in brokerage accounts. Diluted earnings per share were $2.51 and basic earnings per share were $2.56 for the fiscal year.  CEO Commentary 

“We completed the year with record revenue and doubled net income, despite significant investment in the development of the Freedom ecosystem,” said Timur Turlov, Founder and Chief Executive Officer of Freedom Holding Corp. “Our rapidly growing customer base confirms the strength of our strategy: building institutional infrastructure not around individual products, but around solving customers’ everyday needs. Today, the daily audience of Freedom SuperApp exceeds 2.5 million people, compared with just over one million a year ago, while total users exceed 5 million. We believe the solutions we have implemented in Kazakhstan can become universal across the markets where Freedom operates.” 

Customer and Ecosystem Growth 

Freedom SuperApp, the company’s flagship all-in-one platform for retail banking, payments, insurance, government services and lifestyle services, reached more than 5 million users by March 2026. Monthly active users reached 2.59 million in March 2026, compared with 1.02 million in March 2025. 

The SuperApp integrates traditional banking with services for insurance contracts, event tickets, grocery and consumer-goods delivery, airline tickets, travel packages, loyalty rewards, e-commerce, health services and a broad range of government services. 

Banking Momentum 

Freedom Bank Kazakhstan continued to serve as a core component of the company’s ecosystem strategy. As of March 31, 2026, the Banking segment reported combined assets of $5.36 billion, up 21% year over year. The segment’s loan portfolio increased 29% to $2.05 billion, while its deposit portfolio increased 46% to $2.52 billion. 

Freedom also continued to expand its regional banking platform. The company signed an agreement with Ozyol Holding and the National Bank of Kuwait to acquire approximately 99.32% of Turkish Bank A.S., subject to regulatory approval and other customary conditions. The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market also granted Freedom Bank permission to establish a subsidiary bank in Georgia. 

Brokerage Growth and Market Access 

Freedom’s brokerage business continued to benefit from customer growth and demand for access to international capital markets. As of March 31, 2026, brokerage customer accounts had increased to 858,000, reflecting continued organic growth. 

During fiscal 2026, Freedom also expanded its brokerage footprint. Freedom Broker Global Markets Ltd., the company’s UAE subsidiary, received a brokerage license from the Abu Dhabi Global Market Financial Services Regulatory Authority. In March 2025, Freedom Holding Corp. also received a license to conduct brokerage activities in Turkey. 

Expansion in Digital Infrastructure, Telecom, Cloud and Media 

Freedom continued to develop complementary digital infrastructure and lifestyle businesses designed to strengthen customer engagement and broaden the utility of its ecosystem. The company’s Other segment includes payment processing, e-commerce, online ticketing, travel aggregation, telecommunications, cloud services and media initiatives. 

Freedom Telecom is being developed as a telecommunications business in Kazakhstan, while Freedom Cloud provides cloud infrastructure and related services to internal and external clients. Freedom Media is being developed as a streaming and media platform for Kazakhstan and the broader Central Asia region. 

Freedom Holding Corp. and the Ministry of Artificial Intelligence and Digital Development of the Republic of Kazakhstan announced plans to create sovereign NVIDIA artificial-intelligence infrastructure with expected investment of $2 billion. As part of this initiative, Freedom Holding Corp., the Government of Kazakhstan and OpenAI signed a strategic agreement under which 165,000 teachers in Kazakhstan received access to ChatGPT Edu, an education-focused version of ChatGPT with enhanced privacy and data-management features. 

Key Corporate Developments 

S&P Global Ratings revised its outlook on JSC Freedom Finance, Freedom Finance Global PLC, Freedom Finance Europe Ltd. and JSC Freedom Bank Kazakhstan from stable to positive and affirmed long- and short-term ratings at B+/B, citing strengthened risk-management and compliance systems. 

Moody’s assigned Freedom Bank Kazakhstan ratings with a stable outlook, including Ba3 long-term local- and foreign-currency deposit ratings, a b1 baseline credit assessment, a b1 adjusted baseline credit assessment, a Ba2 long-term counterparty risk assessment and Ba2 long-term counterparty risk ratings. 

BlackRock, Morgan Stanley and J.P. Morgan increased their holdings in Freedom Holding Corp. shares. BlackRock remained the company’s largest institutional shareholder. 

Freedom Holding Corp. shares were included in the Moneyball portfolio formed by The Motley Fool. 

Freedom Holding Corp. was included in the Russell 3000 Index, which tracks more than 3,000 of the largest U.S. companies and represents approximately 98% of the investable U.S. equity market. 

A case study on the development of the Freedom ecosystem was included in the Stanford Graduate School of Business MBA program and became part of the university’s educational library for students, faculty and international business-program participants. 

During the reporting period, Freedom Holding Corp. allocated $10.026 million to the Kazakhstan Chess Federation and $10.7 million to the youth soccer league. Its sponsorship activities also extend to education, digital technology, culture, and science. 

Global Team 

As of March 31, 2026, Freedom Holding Corp. employed 11,846 people across its regions of operation, including 10,830 in Central Asia, 334 in Europe, 627 in the Middle East and 55 in the United States. 

About Freedom Holding Corp. 

Freedom Holding Corp. provides financial services in 22 countries, including Kazakhstan, the United States, Cyprus, Poland, Spain, Uzbekistan, and Armenia. The Company’s principal executive office is located in New York City. In Kazakhstan, Freedom is actively developing its financial and digital ecosystem, which includes Freedom Bank, Freedom Broker, the insurance companies Freedom Life and Freedom insurance, as well as a lifestyle segment that features Arbuz.kz, Freedom Ticketon, and Freedom Travel. Freedom Holding Corp. shares are traded on the U.S. technology exchange NASDAQ, the Kazakhstan Stock Exchange (KASE), and the Astana 

International Exchange (AIX) under the ticker symbol FRHC. Freedom Holding Corp. is regulated by the U.S. Securities and Exchange Commission (SEC) and the common stock is included in Russell 3000 Index. 

Freedom Holding Corp. More Than Doubles Net Income and Reports Record Revenue in Fiscal 2026

Freedom Holding Corp. More Than Doubles Net Income and Reports Record Revenue in Fiscal 2026 Freedom Holding Corp. More Than Doubles Net Income and Reports Record Revenue in Fiscal 2026

America's leading consumer lawn and garden company to offer funding, custom White House turfgrass and expertise to help preserve and maintain one of the nation's most iconic backyards June 11, 2026 15:00 ET  | Source: Scotts Miracle-Gro Company (The)

MARYSVILLE, Ohio, June 11, 2026 (GLOBE NEWSWIRE) -- The Scotts Miracle-Gro Company (NYSE: SMG), the leading marketer of branded consumer lawn and garden products in North America, today announced a $1 million contribution to the National Park Service to support restoration efforts for the White House South Lawn following the UFC Freedom 250 event on June 14.

ScottsMiracle-Gro’s donation is a combination of monetary and product support, including a custom turfgrass blend developed specifically to support the long-term health, resilience and appearance of the South Lawn. In addition, the company is offering technical support from its research and development team.

"The White House South Lawn is more than just a landscape. It is a living piece of U.S. history, a stage for global diplomacy and, truly, the backyard of the American people," said Jim Hagedorn, chairman and CEO. "As the market leader in consumer lawn and garden, there is no better company than ScottsMiracle-Gro to play a role in the restoration effort. Founded in 1868 by a Civil War veteran, we have spent nearly 160 years helping people enjoy their yards and gardens. We’re extending that support to the nation's most recognizable backyard as a meaningful way to reflect on history and contribute to the places and traditions that bring Americans together."

ScottsMiracle-Gro's contribution will support restoration work coordinated through the National Park Service, the organization that tends the lawn year-round. The South Lawn is the site of the upcoming UFC Freedom 250 event, one of many 250th anniversary celebrations being held in Washington, D.C. and across America.

The lawn restoration will include the installation of sod followed by overseeding with a custom formula developed by ScottsMiracle-Gro scientists to enhance density, durability, color and overall turf health for the South Lawn. The blend addresses the usage patterns, environmental conditions and year-round expectations for appearance and performance associated with the iconic lawn. President Trump selected the blend from eight options of tall fescues, known for durability and heat tolerance, and Kentucky bluegrasses, which have disease tolerance and thickening characteristics, presented by ScottsMiracle-Gro.

"Creating a proprietary blend for the White House’s unique conditions presented a distinct set of challenges," said Matthew Koch, R&D Lawns Research Fellow at ScottsMiracle-Gro. “It is a functional lawn that has to stand up to hundreds of events and thousands of people each year. Additionally, it is located in an area of the country that can experience climate extremes. President Trump selected a mix of tall fescue and Kentucky blue grass that will make for an aesthetically appealing, resilient and durable lawn for years to come.”

The restoration effort is part of ScottsMiracle-Gro's broader participation in celebrations related to America's 250th anniversary and reflects the company's long-standing commitment to stewardship and its purpose, to GroMoreGood, everywhere. The company is also sponsoring fireworks celebrations, supporting volunteer and community initiatives, and partnering with organizations across the country to help Americans celebrate this historic milestone.

About ScottsMiracle-Gro
The Scotts Miracle-Gro Company, founded in 1868 in Marysville, Ohio, is passionate about helping people of all ages express themselves on their own piece of the Earth. With approximately $3.3 billion in sales, the company is the leading marketer of branded consumer lawn and garden products in North America. The company’s Scotts®, Miracle-Gro®, Ortho® and Tomcat® brands are among the most recognized in the industry and are market-leading in their categories. To learn more, visit www.scottsmiraclegro.com.

For media inquiries:
Tom Matthews
Chief Communications Officer
[email protected]
(937) 844-3864

SYDNEY--(BUSINESS WIRE)--H2O.ai, a pioneer in sovereign AI and global leader in agentic, predictive, and opensource generative AI and machine learning, today announced a new distribution agreement with Ingram Micro Australia and New Zealand. Under the agreement, Ingram Micro becomes a key route to market for the full H2O.ai portfolio across Australia and New Zealand, including the H2O opensource platform, h2oGPTe, Document AI, and enterprise grade Agentic AI solutions.

This strategic collaboration expands H2O.ai’s reach in the region and reinforces Ingram Micro’s position as ANZ’s largest technology distributor and a leader in AI fulfilment. By incorporating H2O.ai’s proven, Kagglewinning AI stack into its rapidly growing ecosystem, Ingram Micro empowers partners to deliver secure, sovereign, and production ready Generative and Agentic AI solutions. All offerings will be discoverable, quotable, and transactable via Ingram Micro’s Xvantage™ AI enabled platform.

Built on the foundations of trust, transparency, and enterprise grade security, Xvantage™ consolidates software, infrastructure, and cloud marketplace capabilities into a single intelligent hub. By pairing H2O.ai solutions with leading infrastructure vendors and cloud services, Xvantage™ allows partners to deliver in country AI outcomes with unprecedented speed and efficiency.

Jamie Lim, Vice President, Partnerships, Asia Pacific at H2O.ai, said:

“Partnering with Ingram Micro combines our expertise in AI platforms and solutions with their extensive partner ecosystem, enabling organisations to accelerate AI adoption at scale. Together, we can bring practical, production ready AI capabilities to more businesses and drive meaningful outcomes across industries in Australia and New Zealand.”

Hope McGarry, Vice President and Chief Country Executive, Ingram Micro Australia, said:

“We’re proud to collaborate with H2O.ai and bring genuine opensource Generative and Agentic AI leadership to our channel. This collaboration enables our partners to design and sell recurring AI services that may drive long term business impact, while helping address critical industry trends such as data sovereignty and ethical AI deployment.”

John Brown, Senior General Manager, Strategy, AI and Emerging Vendors, Ingram Micro Australia, added:

“H2O.ai is a crucial addition to our AI portfolio. Their opensource foundation, enterprise grade performance, and commitment to responsible AI align strongly with the needs of Australian and New Zealand organisations amid increasing scrutiny around AI ethics, sustainability, and governance. Our partners can now deliver production AI solutions faster and more profitably than ever before.”

Brook Gyde, General Manager, ASG and Cloud, Ingram Micro New Zealand, added:

“H2O.ai’s focus on sovereign and responsible AI aligns strongly with what New Zealand customers are looking for - transparency, control, and clear business outcomes. When combined with the capabilities of our Xvantage™ platform, this relationship helps partners design, quote, and transact AI solutions more efficiently, while creating differentiated cloud and managed services that deliver long term value.”

Availability

H2O.ai solutions are available immediately through Ingram Micro and the Xvantage™ platform across Australia and New Zealand. Partners can get started today by contacting their Ingram Micro Account Manager.

About H2O.ai

Founded in 2012, H2O.ai is on a mission to democratize AI. As the world’s leading agentic AI company, H2O.ai converges Generative and Predictive AI to help enterprises and public sector agencies develop purpose-built GenAI applications on their private data. With a focus on Sovereign AI—secure, compliant, and infrastructure-flexible deployments—H2O.ai delivers solutions that align with the highest standards of data privacy and control.

Its open-source technology is trusted by over 20,000 organizations worldwide, including more than half of the Fortune 500. H2O.ai powers AI transformation for companies like AT&T, Commonwealth Bank of Australia, Certis, Chipotle, Workday, Progressive Insurance, and NIH.

H2O.ai partners include NVIDIA, Dell Technologies, Deloitte, Ernst & Young (EY), Snowflake, AWS, Google Cloud Platform (GCP), VAST Data and MinIO. H2O.ai’s AI for Good program supports nonprofit groups, foundations, and communities in advancing education, healthcare, and environmental conservation. With a vibrant community of 2 million data scientists worldwide, H2O.ai aims to co-create valuable AI applications for all users.

H2O.ai has raised $256 million from investors, including Commonwealth Bank, NVIDIA, Goldman Sachs, Wells Fargo, Capital One, Nexus Ventures and New York Life.

For more information, visit www.h2o.ai.

Here is how ANZ Group Holdings Limited - Sponsored ADR (ANZGY) and Banco Bradesco (BBD) have performed compared to their sector so far this year.

ANZ's Daniel Hynes says a dramatic drawdown in global crude inventories will finally push markets to understand the reality of the situation, as markets currently assume the Strait of Hormuz will reopen soon, and supply will quickly come back online.

Dimensional Fund Advisors LP decreased its stake in shares of Mettler-Toledo International, Inc. (NYSE: MTD) by 4.8% during the third quarter, according to its most recent filing with the SEC. The institutional investor owned 102,564 shares of the medical instruments supplier's stock after selling 5,160 shares during the period. Dimensional Fund Advisors LP

Nordea Investment Management AB increased its position in shares of Mettler-Toledo International, Inc. (NYSE: MTD) by 11.9% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 157,457 shares of the medical instruments supplier's stock after buying an additional 16,777 shares during the period. Nordea

Posted by Defense World Staff on Apr 6th, 2026

Aberdeen Group plc grew its stake in shares of Mettler-Toledo International, Inc. (NYSE:MTD – Free Report) by 16.0% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 20,756 shares of the medical instruments supplier’s stock after buying an additional 2,862 shares during the period. Aberdeen Group plc owned 0.10% of Mettler-Toledo International worth $28,938,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently modified their holdings of MTD. Principal Financial Group Inc. boosted its position in shares of Mettler-Toledo International by 2.9% during the 3rd quarter. Principal Financial Group Inc. now owns 298,429 shares of the medical instruments supplier’s stock valued at $366,354,000 after acquiring an additional 8,360 shares during the last quarter. Nordea Investment Management AB increased its position in shares of Mettler-Toledo International by 11.9% in the fourth quarter. Nordea Investment Management AB now owns 157,457 shares of the medical instruments supplier’s stock worth $220,718,000 after purchasing an additional 16,777 shares during the last quarter. Corient Private Wealth LLC raised its stake in Mettler-Toledo International by 91.8% in the second quarter. Corient Private Wealth LLC now owns 140,267 shares of the medical instruments supplier’s stock valued at $164,775,000 after purchasing an additional 67,149 shares in the last quarter. Campbell & CO Investment Adviser LLC bought a new stake in Mettler-Toledo International during the third quarter valued at approximately $2,210,000. Finally, Rakuten Investment Management Inc. bought a new stake in Mettler-Toledo International during the third quarter valued at approximately $121,021,000. 95.07% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling In other Mettler-Toledo International news, CFO Shawn Vadala sold 800 shares of the company’s stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $1,410.12, for a total value of $1,128,096.00. Following the completion of the transaction, the chief financial officer directly owned 5,288 shares in the company, valued at approximately $7,456,714.56. This represents a 13.14% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 1.94% of the stock is owned by insiders.

Mettler-Toledo International Price Performance NYSE MTD opened at $1,262.02 on Monday. The stock has a market capitalization of $25.56 billion, a PE ratio of 29.96, a PEG ratio of 2.64 and a beta of 1.43. Mettler-Toledo International, Inc. has a 1 year low of $946.69 and a 1 year high of $1,525.17. The business’s 50-day moving average is $1,311.78 and its 200 day moving average is $1,364.50.

Mettler-Toledo International (NYSE:MTD – Get Free Report) last released its quarterly earnings results on Friday, February 6th. The medical instruments supplier reported $13.36 EPS for the quarter, beating analysts’ consensus estimates of $12.76 by $0.60. Mettler-Toledo International had a negative return on equity of 495.07% and a net margin of 21.59%.The business had revenue of $1.13 billion during the quarter, compared to analyst estimates of $1.10 billion. During the same quarter in the prior year, the company posted $12.41 EPS. Mettler-Toledo International’s quarterly revenue was up 8.1% compared to the same quarter last year. As a group, equities research analysts anticipate that Mettler-Toledo International, Inc. will post 42.71 earnings per share for the current year.

Analyst Upgrades and Downgrades Several analysts have recently weighed in on the stock. Wells Fargo & Company raised their price objective on shares of Mettler-Toledo International from $1,400.00 to $1,450.00 and gave the company an “equal weight” rating in a research report on Monday, December 15th. Wall Street Zen raised Mettler-Toledo International from a “hold” rating to a “buy” rating in a research note on Saturday, February 14th. Barclays lowered their price target on Mettler-Toledo International from $1,600.00 to $1,550.00 and set an “overweight” rating on the stock in a research report on Monday, December 15th. Jefferies Financial Group raised Mettler-Toledo International from a “hold” rating to a “buy” rating and lifted their price target for the stock from $1,400.00 to $1,450.00 in a research note on Friday, March 20th. Finally, The Goldman Sachs Group began coverage on Mettler-Toledo International in a report on Tuesday, December 9th. They issued a “neutral” rating and a $1,475.00 price objective for the company. Seven equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, Mettler-Toledo International currently has an average rating of “Moderate Buy” and a consensus target price of $1,463.75.

Read Our Latest Analysis on MTD

About Mettler-Toledo International (Free Report)

Mettler-Toledo International Inc is a global manufacturer and distributor of precision instruments and services for laboratory, industrial and food retail applications. The company’s product portfolio includes laboratory balances and analytical instruments, industrial weighing systems, process analytics and sensors, metal detection and x-ray inspection equipment, checkweighers, and a range of automated inspection and data-management solutions. Mettler-Toledo also provides software, calibration and lifecycle services intended to support compliance, quality control and operational efficiency across customer facilities.

The company serves a broad set of end markets including pharmaceutical and biotech laboratories, chemical and food processors, logistics and manufacturing operations, and retail environments where accurate weighing and inspection are critical.

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Posted by Defense World Staff on Apr 10th, 2026

Mettler-Toledo International, Inc. (NYSE:MTD – Get Free Report) has earned an average recommendation of “Moderate Buy” from the thirteen research firms that are currently covering the stock, Marketbeat reports. Six equities research analysts have rated the stock with a hold recommendation and seven have assigned a buy recommendation to the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $1,463.75.

Several brokerages recently weighed in on MTD. Wall Street Zen raised shares of Mettler-Toledo International from a “hold” rating to a “buy” rating in a research note on Saturday, February 14th. Barclays cut their target price on shares of Mettler-Toledo International from $1,600.00 to $1,550.00 and set an “overweight” rating on the stock in a research note on Monday, December 15th. Bank of America raised shares of Mettler-Toledo International from a “neutral” rating to a “buy” rating and set a $1,600.00 price objective on the stock in a research report on Monday, December 15th. Morgan Stanley dropped their price objective on shares of Mettler-Toledo International from $1,550.00 to $1,475.00 and set an “equal weight” rating on the stock in a research report on Tuesday, February 10th. Finally, Weiss Ratings reissued a “hold (c+)” rating on shares of Mettler-Toledo International in a research report on Monday, December 29th.

View Our Latest Analysis on MTD

Insider Activity In related news, CFO Shawn Vadala sold 800 shares of the stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $1,410.12, for a total transaction of $1,128,096.00. Following the completion of the sale, the chief financial officer owned 5,288 shares in the company, valued at $7,456,714.56. This represents a 13.14% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 0.71% of the company’s stock.

Institutional Trading of Mettler-Toledo International Several hedge funds have recently made changes to their positions in MTD. Reflection Asset Management purchased a new position in Mettler-Toledo International during the 4th quarter valued at about $26,000. Elyxium Wealth LLC purchased a new position in Mettler-Toledo International during the 4th quarter valued at about $29,000. Versant Capital Management Inc increased its holdings in Mettler-Toledo International by 42.1% during the 3rd quarter. Versant Capital Management Inc now owns 27 shares of the medical instruments supplier’s stock valued at $33,000 after acquiring an additional 8 shares in the last quarter. SJS Investment Consulting Inc. increased its holdings in Mettler-Toledo International by 2,700.0% during the 3rd quarter. SJS Investment Consulting Inc. now owns 28 shares of the medical instruments supplier’s stock valued at $34,000 after acquiring an additional 27 shares in the last quarter. Finally, DV Equities LLC purchased a new position in Mettler-Toledo International during the 4th quarter valued at about $40,000. Institutional investors and hedge funds own 95.07% of the company’s stock.

Mettler-Toledo International Stock Up 0.6% MTD stock opened at $1,330.10 on Friday. The stock has a market capitalization of $26.93 billion, a P/E ratio of 31.58, a P/E/G ratio of 2.77 and a beta of 1.43. The firm has a 50-day simple moving average of $1,302.70 and a 200-day simple moving average of $1,363.84. Mettler-Toledo International has a 52 week low of $962.54 and a 52 week high of $1,525.17.

Mettler-Toledo International (NYSE:MTD – Get Free Report) last posted its quarterly earnings results on Friday, February 6th. The medical instruments supplier reported $13.36 earnings per share for the quarter, topping analysts’ consensus estimates of $12.76 by $0.60. The firm had revenue of $1.13 billion for the quarter, compared to analyst estimates of $1.10 billion. Mettler-Toledo International had a net margin of 21.59% and a negative return on equity of 495.07%. Mettler-Toledo International’s quarterly revenue was up 8.1% on a year-over-year basis. During the same period in the previous year, the business posted $12.41 earnings per share. On average, analysts expect that Mettler-Toledo International will post 42.71 earnings per share for the current year.

Mettler-Toledo International Company Profile (Get Free Report)

Mettler-Toledo International Inc is a global manufacturer and distributor of precision instruments and services for laboratory, industrial and food retail applications. The company’s product portfolio includes laboratory balances and analytical instruments, industrial weighing systems, process analytics and sensors, metal detection and x-ray inspection equipment, checkweighers, and a range of automated inspection and data-management solutions. Mettler-Toledo also provides software, calibration and lifecycle services intended to support compliance, quality control and operational efficiency across customer facilities.

The company serves a broad set of end markets including pharmaceutical and biotech laboratories, chemical and food processors, logistics and manufacturing operations, and retail environments where accurate weighing and inspection are critical.

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Key Takeaways Biogen highlights five non-tech wide moat stocks built for durable growth and market resilience.Lockheed Martin benefits from rising defense budgets, strong backlog and sustained F-35 demand globally.Mastercard gains from digital payment adoption, AI integration, and expanding revenue streams. The wide moat strategy involves investing in companies that not only lead their industries but are also strategically fortified to maintain dominance in the future. The business models of these companies possess durable competitive advantages that shield them from competitors. This strategy isn't just about recording short-term gains, but securing a portfolio of stocks that can weather economic storms and deliver stable and predictable returns.

This investment strategy focuses on companies with unique strengths such as brand recognition, patent protection, proprietary technology and network effects. These moats ensure long-term profitability and market leadership, making the companies resilient in volatile markets.

Here we recommend five non-tech Wide Moat stocks with a favorable Zacks Rank. These stocks are: Biogen Inc. (BIIB - Free Report) , Lockheed Martin Corp. (LMT - Free Report) , Northrop Grumman Corp. (NOC - Free Report) , Mastercard Inc. (MA - Free Report) and Mettler-Toledo International Inc. (MTD - Free Report) . Each of our picks carries either a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

Biogen Inc.Biogen has successfully diversified its pipeline across areas like Alzheimer's, immunology and rare disease. BIIB’s spinal muscular atrophy (SMA) treatment, Spinraza (nusinersen) was the first treatment to be approved in the United States for SMA. Despite increasing competition, Spinraza has held a decent share in most markets.

BIIB’s Leqembi/lecanemab gained approval for early Alzheimer’s disease in the United States in 2023. Though the Leqembi launch was slow, it picked up in 2024 and 2025. Leqembi has also been launched in Japan, China, the EU and some other countries. Leqembi commands over 60% of the anti-amyloid therapy market share in the United States.

BIIB is making significant progress toward building a multi-franchise portfolio through both internal development and collaborations. BIIB is expanding its pipeline portfolio into rare diseases, immunology and neuropsychiatry.

Biogen has an expected revenue and earnings growth rate of -4.7% and 3.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.01% in the last 30 days.

Lockheed Martin Corp.Lockheed Martin’s broad product offerings allow it to secure major defense contracts, which in turn boost its backlog count. LMT remains the largest U.S. defense contractor with a steady order flow from the Pentagon and other allies of the country. 

Apart from enjoying a strong forte on the domestic front, LMT’s products are well-acclaimed in the international market. Increasing U.S. defense budget funding should boost its business. LMT continues to witness international interest in the Aegis Ballistic Missile Defense System (Aegis) from international customers, such as Japan, Spain, the Republic of Korea and Australia.

The production of F-35 jets is expected to continue for many years, given the government's current inventory target of 2,470 aircraft for the Air Force, Marine Corps and Navy by 2040 and LMT expecting the global fleet to reach more than 3,500. Consequently, one may expect LMT to witness more order inflows for F-35 in the coming days, which should significantly bolster this defense contractor’s top line.

Lockheed Martin has an expected revenue and earnings growth rate of 5.5% and 29.5%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.01% in the last 30 days.

Northrop Grumman Corp.Northrop Grumman boasts a solid presence in Defense and Cyber Security programs, with its product line being well-positioned in high-priority categories. NOC witnesses strong demand for its products across the globe. NOC boasts a strong financial position. 

The current U.S. government’s inclination toward strengthening the nation’s defense system should benefit NOC. Foreign military sales also serve as a key growth catalyst for Northrop, with the company delivering its products and services to customers in 25 nations. NOC’s international sales totaled $5.99 billion in 2025, comprising 14% of total sales, and improving a solid 19.8% year over year.

Northrop Grumman has an expected revenue and earnings growth rate of 4.6% and 6.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.01% in the last 30 days.

Mastercard Inc.Mastercard’s acquisitions are helping it to increase addressable markets and drive new revenue streams. MA’s net revenue rose16% year over year in 2025. The accelerated adoption of digital and contactless solutions is providing an opportunity for MA’s business to expedite its shift to the digital mode. Strong cash flow supports its growth initiatives.

Mastercard is aggressively adopting AI technologies to enhance security and customer experiences. MA is using AI in five different aspects of its operations — first, fraud detection and prevention, second, optimization of the payment processing services, third, customer experience personalization, fourth, deeper analysis of customer behavior using predictive AI analytics tools and finally the use of high-end AI technologies to enhance merchant services.

Mastercard has an expected revenue and earnings growth rate of 12.7% and 14.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.01% in the last seven days. 

Mettler-Toledo International Inc.Mettler-Toledo is benefiting from its innovative product portfolio, strong demand for automation solutions and market share gains in product inspection. MTD’s expanded midrange product offerings have attracted new customers, while its bioprocessing-related sales remain strong, supported by unique workflow solutions. 

MTD offered positive 2026 guidance, with operating margin expected to be up 60 to 70 basis points, which is flattish to slightly up on a reported basis. Strong liquidity is expected to help MTD continue its share repurchase program. Free cash flow is expected to be approximately $900 million in 2026, representing a 5% increase on a per share basis, with the first quarter expected to be approximately $100 million.

Mettler-Toledo International has an expected revenue and earnings growth rate of 4.9% and 8.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.01% in the last 30 days. 

Mettler-Toledo (MTD - Free Report) came out with quarterly earnings of $8.91 per share, beating the Zacks Consensus Estimate of $8.7 per share. This compares to earnings of $8.19 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +2.44%. A quarter ago, it was expected that this maker of precision instruments would post earnings of $12.76 per share when it actually produced earnings of $13.36, delivering a surprise of +4.7%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Mettler-Toledo, which belongs to the Zacks Medical - Instruments industry, posted revenues of $947.13 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.04%. This compares to year-ago revenues of $883.74 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Mettler-Toledo shares have lost about 4.8% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for Mettler-Toledo?While Mettler-Toledo has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Mettler-Toledo was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $11.04 on $1.03 billion in revenues for the coming quarter and $46.51 on $4.22 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Instruments is currently in the bottom 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, PAVmed Inc. (PAVM - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 15.

This company is expected to post quarterly loss of $0.69 per share in its upcoming report, which represents a year-over-year change of +67.1%. The consensus EPS estimate for the quarter has been revised 82.2% higher over the last 30 days to the current level.

PAVmed Inc.'s revenues are expected to be $0.1 million, up 900% from the year-ago quarter.

Although the revenue and EPS for Mettler-Toledo (MTD) give a sense of how its business performed in the quarter ended March 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

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On May 18, 2026, Mettler-Toledo International Inc (MTD) shares rose 4.2%, closing at $1074.84. The stock has experienced significant volatility, trading within

Driven Brands Holdings Inc. (NASDAQ: DRVN) (“Driven Brands” or the “Company”) today reported financial results for the fourth quarter and fiscal year ending December 27, 2025, and expects to file its 2025 Annual Report on Form 10-K with the U.S. Securities and Exchange Commission later today. The 2025 Annual Report on Form 10-K will include restated financial results for fiscal years 2024 and 2023, restated interim financial results for the periods from the first quarter of 2024 through the third quarter of 2025, and restated Management’s Discussion and Analysis of Financial Condition and Results of Operations related to fiscal years 2024 and 2023. The restated financial results will reflect adjustments related to leases, cash, accounts payable, expense classification, accounts receivable, and other immaterial corrections.

“Driven Brands delivered a solid fourth quarter and full year, anchored by Take 5’s 3.7% same store sales growth, our 22nd consecutive quarter of growth,” said Danny Rivera, President and Chief Executive Officer. “In 2025, we took important steps to strengthen our foundation, including streamlining our portfolio to focus on core services in North America, meaningfully deleveraging our balance sheet, and investing in the capabilities that support our long-term strategy. We have completed the restatement of our prior-period financial results and are enhancing our internal controls to strengthen the accuracy of our financial reporting.”

“Looking ahead to 2026, our priorities remain clear: scaling our Take 5 platform, generating stable cash flow from our franchise brands, achieving our 3.0x net leverage ratio by year-end, and continuing our disciplined approach to portfolio optimization. We continue to expect Take 5 to deliver first quarter same store sales growth in the range of 4.3% to 4.5% on a preliminary basis. While the consumer environment remains dynamic, our focused portfolio of resilient, needs-based businesses and disciplined operational execution position us well to continue driving long-term shareholder value,” Rivera concluded.

Note: Prior-period financial information presented herein reflects results inclusive of restatement corrections and has been recast for discontinued operations for the applicable periods. Cash flow statements have not been recast to reflect the impact of discontinued operations.

Fourth Quarter 2025 Highlights

For the fourth quarter, Driven Brands delivered revenue of $460.1 million, an increase of 8% versus the prior year. System-wide sales were $1.5 billion, an increase of 2% versus the prior year primarily driven by 0.5% same store sales growth and 175 net new units.

Net income from continuing operations for the fourth quarter was $40.7 million or $0.25 per diluted share versus a net loss of $20.3 million or $0.13 loss per diluted share in the prior year. Adjusted Net Income from continuing operations1 was $56.4 million or $0.34 per diluted share versus $56.2 million or $0.34 per diluted share in the prior year. Adjusted EBITDA1 was $111.9 million, an increase of 7% versus the prior year.

Fiscal Year 2025 Highlights

For fiscal year 2025, Driven Brands delivered revenue of $1.9 billion, an increase of 6% versus the prior year. System-wide sales increased 3% to $6.1 billion, driven by a 1% increase in same store sales and 4% increase in store count versus the prior year.

Net income from continuing operations for fiscal year 2025 was $132.1 million or $0.80 per diluted share versus $0.5 million or $0.00 per diluted share in the prior year. Adjusted Net Income from continuing operations1 was $199.2 million or $1.21 per diluted share versus $174.8 million or $1.07 per diluted share in the prior year. Adjusted EBITDA1 was $449.1 million, an increase of $6.0 million versus the prior year.

Fourth Quarter 2025 Key Performance Indicators by Segment

System-wide Sales
(in millions)

Store Count

Same Store
Sales

Revenue
(in millions)

Adjusted EBITDA
(in millions)

Take 5

$

411.4

1,342

3.7

%

$

308.5

$

107.3

Franchise Brands

1,017.8

2,699

(1.0

)%

67.9

42.4

Auto Glass Now

56.3

211

6.3

%

56.4

3.2

Corporate and Other

N/A

N/A

N/A

27.3

(41.0

)

Total

$

1,485.5

4,252

0.5

%

$

460.1

111.9

Fiscal Year 2025 Key Performance Indicators by Segment

System-wide Sales
(in millions)

Store Count

Same Store
Sales

Revenue
(in millions)

Adjusted EBITDA
(in millions)

Take 5

$

1,617.1

1,342

6.2

%

$

1,215.4

$

418.7

Franchise Brands

4,218.0

2,699

(1.1

)%

285.0

178.8

Auto Glass Now

257.6

211

7.9

%

257.8

25.9

Corporate and Other

N/A

N/A

N/A

104.3

(174.3

)

Total

$

6,092.7

4,252

1.0

%

$

1,862.4

449.1

Note: Certain columns may not add due to rounding.

Capital and Liquidity

The Company ended the year with a net leverage ratio of 3.7x Adjusted EBITDA1 and total liquidity of $634 million consisting of $103 million in cash and cash equivalents and $531 million of undrawn capacity on its variable funding securitization senior notes and revolving credit facility. This did not include the additional $135 million Series 2022 Class A-1 Notes that would expand the Company’s variable funding note borrowing capacity if the Company elects to exercise them, assuming certain conditions continue to be met.

As previously disclosed, the Company received a waiver under its whole-business securitization structure and entered into a limited waiver and amendment to its revolving credit facility, each providing relief related to the completed restatement of previously issued financial statements. These actions extended the date to deliver the Company’s audited financial statements for fiscal year 2025 to June 10, 2026, and unaudited first quarter 2026 financial statements to 45 days after delivery of the audited fiscal year 2025 financial statements, or July 3, 2026.

International Car Wash Divestiture

As disclosed previously, on January 27, 2026, Driven Brands completed the divestiture of IMO, its international car wash business, for an aggregate consideration of approximately € 411 million.

Net proceeds from the divestiture of the international car wash business were primarily used to pay down debt, which improved pro forma net leverage to 3.3x Adjusted EBITDA1.

Resegmentation

As previously disclosed, the divestiture of the international car wash business resulted in corresponding changes to the Company’s financial reportable segments. As a result, the Company will report in its 2025 Annual Report on Form 10-K the following reportable segments: Take 5, Franchise Brands, and Auto Glass Now.

The Take 5 segment consists primarily of our company operated and franchise Take 5 Oil Change stores.

The Franchise Brands segment consists of our portfolio of franchised brands, which include Meineke, Maaco, CARSTAR and 1-800 Radiator, among other smaller brands. These brands are over 99% franchised.

The Auto Glass Now segment consists of our U.S. retail, commercial and insurance glass businesses.

Restatement

The Company has completed the restatement of its fiscal years 2023 and 2024 financial statements and interim financial results for the periods from the first quarter of 2024 through the third quarter of 2025. The restatement corrects accounting errors primarily related to leases, cash, accounts payable, expense classification, accounts receivable, and other immaterial corrections. The details of the corrections for fiscal years 2023 and 2024 and for the interim periods from the first quarter of 2024 through the third quarter of 2025 will be included in the Company’s 2025 Annual Report on Form 10-K for the fiscal year ended December 27, 2025, which the Company expects to file later today. The restatement is not a result of any substantive change to the Company’s operations or business performance for the corrected periods.

The net impact of the restatement corrections decreased Adjusted EBITDA1 by approximately $57 million in fiscal year 2023, decreased Adjusted EBITDA1 by approximately $12 million in fiscal year 2024, and decreased Adjusted EBITDA1 by approximately $8 million in fiscal year 2025 year-to-date through the third quarter.

Additional information regarding the restated financial statements is set forth in the section “Description of Restatement Matters and Restatement Errors” within this release.

Reiterated First Quarter 2026 Preliminary Results

On a preliminary basis for the first quarter of 2026, the Company continues to expect total same store sales growth in the range of 1.9% to 2.1%, including Take 5 same store sales growth in the range of 4.3% to 4.5%. The Company continues to expect total net revenue in the quarter to be in the range of $475 million to $485 million.

The Company continues to expect first quarter 2026 net new unit growth to be 29 units and to end the first quarter with total net debt of approximately $1.6 billion. Additionally, the Company continues to expect Adjusted EBITDA1 for the first quarter of 2026 to be moderately lower than prior year primarily due to expenses associated with the restatement of previously issued financial statements.

The Company is working to report its first quarter 2026 results and file its first quarter 2026 Form 10-Q. The Company currently anticipates filing its Form 10-Q on or before July 3, 2026, the due date for the Company to deliver its unaudited first quarter 2026 financial statements to its lenders as noted above.

Fiscal Year 2026 Outlook

Inclusive of the first quarter 2026 preliminary results provided above, the Company is providing its financial outlook for the fiscal year ending December 26, 2026, as follows:

2026 Outlook

Revenue

~$1.95 - $2.05 billion

Adjusted EBITDA1

~$430 - $460 million

Adjusted Diluted EPS1

~$1.15 - $1.25

Adjusted EBITDA1 and Adjusted Diluted EPS1 2026 outlook include approximately $35 million to $45 million of restatement-related, non-recurring costs for fiscal year 2026.

The Company expects fiscal year 2026 same store sales growth in the range of flat to 2%; and expects net store growth of approximately 160 to 190.

The Company also expects to generate between $125 million and $145 million of free cash flow2 in fiscal year 2026.

Note: 2026 outlook excludes the impact of any potential M&A and divestitures other than the completed divestiture of the international car wash business.

1 Adjusted EBITDA, Adjusted Net Income from continuing operations and Adjusted Diluted EPS are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. Forward-looking estimates of Adjusted EBITDA and Adjusted EPS are made in a manner consistent with the relevant definitions and assumptions noted herein.

2 Free cash flow is a non-GAAP financial measure defined as cash provided by operating activities less capital expenditures, net of proceeds from sale leaseback transactions. Management believes free cash flow is a useful indicator of the Company’s ability to generate cash that can be used to repay debt, reinvest in the business, and return capital to shareholders. Forward-looking estimate of free cash flow is made in a manner consistent with the relevant definitions and assumptions noted herein.

Conference Call

Driven Brands will host a conference call to discuss fourth quarter and fiscal year 2025 results today, Tuesday, May 19, 2026, at 8:30 a.m. ET. The call will be available by webcast and can be accessed by visiting Driven Brands’ Investor Relations website at investors.drivenbrands.com. A replay of the call will be available for at least three months.

About Driven Brands

Driven Brands™, headquartered in Charlotte, NC, is the largest automotive services company in North America, providing a range of consumer and commercial automotive services, including oil change, paint, collision, glass, vehicle repair, and maintenance. Driven Brands is the parent company of some of North America’s leading automotive service businesses including Take 5 Oil Change®, Meineke Car Care Centers®, Maaco®, 1-800-Radiator & A/C®, Auto Glass Now®, and CARSTAR®. As of the end of fiscal year 2025, Driven Brands had over 4,200 locations across the U.S. and Canada, and services tens of millions of vehicles annually. Driven Brands’ network generated approximately $1.9 billion in annual revenue from approximately $6.1 billion in system-wide sales.

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended

Year Ended

(in thousands, except per share amounts)

December 27,
2025

December 28,
2024

December 27,
2025

December 28,
2024

As Restated and Recast

As Restated and Recast

Net revenue:

Franchise royalties and fees

$

45,371

$

44,085

$

190,085

$

188,634

Company-operated store sales

316,288

295,965

1,294,958

1,178,783

Advertising contributions

28,272

27,265

108,521

103,069

Supply and other revenue

70,171

59,891

268,874

281,990

Total net revenue

460,102

427,206

1,862,438

1,752,476

Operating expenses:

Company-operated store expenses

187,020

173,848

758,972

676,890

Advertising expenses

28,523

26,774

108,772

103,460

Supply and other expenses

40,207

37,357

157,302

171,788

Selling, general, and administrative expenses

103,625

143,483

496,297

464,992

Depreciation and amortization

20,132

21,079

81,858

78,989

Asset impairment charges and lease terminations

2,398

8,870

28,127

56,538

Total operating expenses

381,905

411,411

1,631,328

1,552,657

Operating income

78,197

15,795

231,110

199,819

Other expenses, net:

Interest expense, net

28,628

35,993

121,202

156,991

Foreign currency transaction (gain) loss, net

86

11,441

(14,715

)

17,530

Loss on debt extinguishment

843

—

5,392

205

Other expenses, net

29,557

47,434

111,879

174,726

Income (loss) before taxes from continuing operations

48,640

(31,639

)

119,231

25,093

Income tax (benefit) expense

7,923

(11,378

)

(12,842

)

24,547

Net income (loss) from continuing operations

$

40,717

$

(20,261

)

$

132,073

$

546

(Loss) gain on sale of discontinued operations, net of tax

(3,196

)

—

35,752

—

Net loss from discontinued operations, net of tax

(16,337

)

(286,552

)

(27,663

)

(297,999

)

Net income (loss)

$

21,184

$

(306,813

)

$

140,162

$

(297,453

)

Basic earnings (loss) per share:

Continuing Operations

$

0.25

$

(0.13

)

$

0.80

$

—

Discontinued Operations

(0.12

)

(1.79

)

0.05

(1.86

)

Net basic earnings (loss) per share

$

0.13

$

(1.92

)

$

0.85

$

(1.86

)

Diluted earnings (loss) per share:

Continuing Operations

$

0.25

$

(0.13

)

$

0.80

$

—

Discontinued Operations

(0.12

)

(1.79

)

0.05

(1.86

)

Net diluted earnings (loss) per share

$

0.13

$

(1.92

)

$

0.85

$

(1.86

)

Weighted average shares outstanding

Basic

164,044

160,424

162,836

160,319

Diluted

165,015

160,424

163,852

161,210

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except share and per share amounts)

December 27, 2025

December 28, 2024

As Restated and
Recast

Assets

Current assets:

Cash and cash equivalents

$

102,938

$

103,438

Restricted cash

162

358

Accounts and notes receivable, net

131,958

146,372

Inventory

52,375

48,889

Prepaid and other assets

50,103

24,065

Income tax receivable

49,266

26,577

Advertising fund assets, restricted

60,826

48,349

Assets held for sale

31,233

79,090

Current assets of discontinued operations

61,993

130,713

Total current assets

540,854

607,851

Other assets

114,657

118,948

Property and equipment, net

471,804

409,451

Operating lease right-of-use assets

513,458

451,793

Deferred commissions

7,824

7,246

Intangibles, net

617,849

634,794

Goodwill

1,218,002

1,205,530

Deferred tax assets

3,982

7,204

Non-current assets of discontinued operations

671,490

1,808,978

Total assets

$

4,159,920

$

5,251,795

Liabilities and shareholders' equity

Current liabilities:

Accounts payable

$

93,029

$

86,188

Accrued expenses and other liabilities

198,759

160,283

Income tax payable

2,652

5,590

Current portion of long-term debt

276,691

33,696

Tax receivable agreement payable

56,211

22,676

Advertising fund liabilities

24,670

25,996

Current liabilities of discontinued operations

73,795

114,353

Total current liabilities

725,807

448,782

Long-term debt

1,882,783

2,658,889

Deferred tax liabilities

13,554

31,885

Operating lease liabilities

501,506

439,838

Tax receivable agreement payable

73,084

110,597

Deferred revenue

30,365

31,893

Long-term accrued expenses and other liabilities

—

2,026

Non-current liabilities of discontinued operations

165,619

984,115

Total liabilities

3,392,718

4,708,025

Preferred Stock $0.01 par value; 100,000,000 shares authorized; none issued or outstanding

—

—

Common stock, $0.01 par value, 900,000,000 shares authorized: and 164,531,712 and 163,842,248 shares issued and outstanding; respectively

1,645

1,638

Additional paid-in capital

1,736,416

1,707,573

Accumulated deficit

(953,208

)

(1,093,370

)

Accumulated other comprehensive loss

(17,651

)

(72,071

)

Total shareholders’ equity

767,202

543,770

Total liabilities and shareholders' equity

$

4,159,920

$

5,251,795

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Year Ended

(in thousands)

December 27,
2025

December 28,
2024

As Restated

Net income (loss)

$

140,162

$

(297,453

)

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

Depreciation and amortization

134,432

181,409

Goodwill impairment

28,317

—

Share-based compensation expense

32,276

52,096

(Gain) loss on foreign denominated transactions

(23,063

)

25,126

Loss (gain) on foreign currency derivatives

8,347

(7,605

)

(Gain) loss on sale and disposal of businesses, fixed assets, and sale leaseback transactions

(28,048

)

26,684

Loss on fair value of Seller Note

17,000

—

Reclassification of interest rate hedge to income

(6,157

)

(2,094

)

Bad debt expense

18,722

8,963

Asset impairment charges and lease terminations

28,939

389,242

Amortization of deferred financing costs and bond discounts

9,736

9,759

Amortization of cloud computing

17,696

10,825

Benefit for deferred income taxes

(20,381

)

(56,484

)

Loss on extinguishment of debt

5,392

205

Other, net

3,887

(3,918

)

Changes in operating assets and liabilities, net of acquisitions:

Accounts and notes receivable, net

(12,088

)

(37,572

)

Inventory

(1,475

)

(2,332

)

Prepaid and other assets

(24,962

)

2,987

Advertising fund assets and liabilities, restricted

771

(6,118

)

Other assets

(21,403

)

(77,243

)

Deferred commissions

(578

)

934

Deferred revenue

(1,543

)

1,280

Accounts payable

604

24,559

Accrued expenses and other liabilities

30,271

13,627

Income tax receivable

(6,311

)

(12,923

)

Cash provided by operating activities

330,543

243,954

Cash flows from investing activities:

Capital expenditures

(222,774

)

(288,635

)

Cash used in business acquisitions, net of cash acquired

(11,253

)

(2,990

)

Proceeds from sale leaseback transactions

73,099

51,371

Proceeds from Seller Note

113,000

—

Proceeds from sale or disposal of businesses and fixed assets, net of cash sold

280,654

290,329

Cash provided by investing activities

232,726

50,075

Cash flows from financing activities:

Payment of debt extinguishment and issuance costs

(10,489

)

(9,646

)

Proceeds from the issuance of long-term debt

500,000

274,794

Repayment of long-term debt

(994,584

)

(465,443

)

Proceeds from revolving lines of credit and short-term debt

282,000

46,000

Repayment of revolving lines of credit and short-term debt

(332,000

)

(104,000

)

Repayment of principal portion of finance lease liability

(5,506

)

(5,028

)

Payment of Tax Receivable Agreement

—

(38,374

)

Acquisition of non-controlling interest

—

(644

)

Tax obligations for share-based compensation

(4,394

)

(1,593

)

Cash used in financing activities

(564,973

)

(303,934

)

Effect of exchange rate changes on cash

5,654

(4,103

)

Net change in cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted

3,950

(14,008

)

Cash and cash equivalents from continuing operations, beginning of period

103,438

132,552

Cash included in advertising fund assets, restricted, beginning of period

38,930

38,537

Restricted cash from continuing operations, beginning of period

358

657

Cash, cash equivalents, and restricted cash from discontinued operations, beginning of period

38,372

23,360

Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, beginning of period

181,098

195,106

Cash and cash equivalents from continuing operations, end of period

102,938

103,438

Cash included in advertising fund assets, restricted, end of period

52,204

38,930

Restricted cash from continuing operations, end of period

162

358

Cash, cash equivalents, and restricted cash from discontinued operations, end of period

29,744

38,372

Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, end of period

$

185,048

$

181,098

Description of Restatement Matters and Restatement Errors

An overview of the restatement adjustments and their impact on previously reported consolidated financial statements are described below.

Lease adjustments

The Company identified certain leases that originated in prior periods beginning in 2023 where the lease had not been recorded at the time of lease commencement. The impact of the errors to the consolidated statements of operations for fiscal years 2024 and 2023 is increases of $2 million and $1 million, respectively, to company-operated store expense. The impact of the errors to the consolidated balance sheet as of December 28, 2024 is an increase of $40 million to operating lease right-of-use assets, an increase of $2 million to accrued expenses and other liabilities and an increase of $40 million to operating lease liabilities.

Cash adjustments

The Company identified unreconciled and aged differences between the general ledger cash balance and bank statements in prior years resulting in overstatement of cash and revenue and understatement of selling, general, and administrative expense, primarily impacting accumulated deficit in periods prior to fiscal year 2023. The impact of the errors relating to cash adjustments to the consolidated statement of operations for fiscal year 2024 is an increase to selling, general, and administrative expenses of $4 million. The impact of the errors to the consolidated statement of operations for fiscal year 2023 is a decrease to company-operated store sales of $6 million and a $1 million increase to selling, general, and administrative expenses. The impact of the errors to the consolidated balance sheet as of December 28, 2024 is a decrease to cash and cash equivalents of $28 million. The errors further affect the opening and closing cash balances and operating cash flows in the consolidated statements of cash flows for fiscal years 2024 and 2023. The impact of the errors to the opening cash balances in the consolidated statements of cash flows for fiscal years 2024 and 2023 is a decrease of $21 million and $14 million respectively. The impact of the errors to the closing cash balances in the consolidated statements of cash flows for fiscal years 2024 and 2023 is a decrease of $28 million and $21 million, respectively.

Accounts payable adjustments

The Company identified unreconciled and aged differences between the general ledger accounts payable balance and related subledger systems in prior years as a result of incorrect recording, offsetting, and consolidation of intercompany transactions, resulting in understatements in accounts payable and understatements of company-operated store expenses depending on the nature of the reconciling items. The impact of the errors to the consolidated statement of operations for fiscal year 2024 is a $2 million increase to selling, general, and administrative expenses and a $2 million decrease to company-operated store expenses. The impact of the errors to the consolidated statement of operations for fiscal year 2023 is a less than $1 million increase to selling, general, and administrative expenses, and a $32 million increase to company-operated store expenses. The impact of the errors to the consolidated balance sheet as of December 28, 2024 is an increase to accounts payable of $7 million.

Expense classification adjustments

During fiscal years 2024 and 2023, certain supply and other expenses were reflected within company-operated store expenses. This error resulted in company-operated store expenses being overstated by $35 million and $27 million for fiscal years 2024 and 2023, respectively, and a corresponding understatement of supply and other expenses in those periods.

Accounts receivable adjustments

The Company identified unreconciled and aged receivables, misapplied cash and clearing entries, allowance calculations that required correction, and certain accounts receivable not recorded in the subledger, primarily impacting accumulated deficit in periods prior to fiscal year 2023. The impact of the errors to the consolidated statement of operations for fiscal year 2024 is a $2 million decrease to company-operated store sales, a $2 million decrease to supply and other revenue, and a $1 million increase to selling, general, and administrative expenses, as well as other immaterial impacts. The impact of the errors to the consolidated statement of operations for fiscal year 2023 is a less than $1 million increase to company-operated stores sales, a $3 million decrease to supply and other revenue, and a $9 million increase to selling, general, and administrative expenses, as well as other immaterial impacts. These issues resulted in an overstatement of accounts receivable of $26 million as of December 28, 2024.

Other adjustments

The Company has calculated the tax impact of the errors and has also identified other immaterial errors, which have been reflected in the tables below.

The following tables present the restatement adjustments to previously issued consolidated financial statements, including the previously reported consolidated statement of operations for fiscal year 2024, consolidated balance sheet as of December 28, 2024, consolidated statement of cash flows for fiscal year 2024, and consolidated statement of operations and consolidated statement of cash flows for fiscal year 2023.

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

Year Ended December 28, 2024

(in thousands, except per share amounts)

As Previously
Reported

Restatement
Impacts

As Restated

Discontinued
Operations
Reclassification
Impacts

As Restated and
Recast

Net revenue:

Franchise royalties and fees

$

188,634

$

—

$

188,634

—

$

188,634

Company-operated store sales

1,544,932

(2,354

)

1,542,578

(363,795

)

1,178,783

Independently-operated store sales

212,396

—

212,396

(212,396

)

—

Advertising contributions

101,316

1,753

103,069

—

103,069

Supply and other revenue

292,310

(3,636

)

288,674

(6,684

)

281,990

Total net revenue

2,339,588

(4,237

)

2,335,351

(582,875

)

1,752,476

Operating expenses:

Company-operated store expenses

993,090

(32,692

)

960,398

(283,508

)

676,890

Independently-operated store expenses

121,325

(6

)

121,319

(121,319

)

—

Advertising expenses

101,617

1,843

103,460

—

103,460

Supply and other expenses

139,658

35,855

175,513

(3,725

)

171,788

Selling, general, and administrative expenses

554,775

153

554,928

(89,936

)

464,992

Depreciation and amortization

180,112

1,297

181,409

(102,420

)

78,989

Asset impairment charges and lease terminations

389,242

—

389,242

(332,704

)

56,538

Total operating expenses

2,479,819

6,450

2,486,269

(933,612

)

1,552,657

Operating (loss) income

(140,231

)

(10,687

)

(150,918

)

350,737

199,819

Other expenses, net:

Interest expense, net

156,964

872

157,836

(845

)

156,991

Foreign currency transaction loss (gain), net

20,239

(2,709

)

17,530

—

17,530

Loss on debt extinguishment

205

—

205

—

205

Other expenses, net

177,408

(1,837

)

175,571

(845

)

174,726

(Loss) income before taxes from continuing operations

(317,639

)

(8,850

)

(326,489

)

351,582

25,093

Income tax (benefit) expense

(25,143

)

(3,893

)

(29,036

)

53,583

24,547

Net (loss) income from continuing operations

$

(292,496

)

$

(4,957

)

$

(297,453

)

$

297,999

$

546

Net loss from discontinued operations, net of tax

—

—

—

(297,999

)

(297,999

)

Net loss

$

(292,496

)

$

(4,957

)

$

(297,453

)

$

—

$

(297,453

)

Basic (loss) earnings per share:

Continuing Operations

$

(1.79

)

$

(0.04

)

$

(1.86

)

$

1.86

$

—

Discontinued Operations

—

—

—

(1.86

)

(1.86

)

Net basic loss per share

$

(1.79

)

$

(0.04

)

$

(1.86

)

$

—

$

(1.86

)

Diluted (loss) earnings per share:

Continuing Operations

$

(1.82

)

$

(0.04

)

$

(1.86

)

$

1.86

$

—

Discontinued Operations

—

—

—

(1.86

)

(1.86

)

Net diluted loss per share

$

(1.82

)

$

(0.04

)

$

(1.86

)

$

—

$

(1.86

)

Weighted average shares outstanding

Basic

160,319

—

160,319

—

160,319

Diluted

160,319

—

160,319

891

161,210

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

Year Ended December 28, 2024

(in thousands, except share and per share amounts)

As Previously
Reported

Restatement
Impacts

As Restated

Discontinued
Operations
Reclassification
Impacts

As Restated and
Recast

Assets

Current assets:

Cash and cash equivalents

$

169,954

$

(28,144

)

$

141,810

$

(38,372

)

$

103,438

Restricted cash

358

—

358

—

358

Accounts and notes receivable, net

179,609

(26,338

)

153,271

(6,899

)

146,372

Inventory

67,527

(7,011

)

60,516

(11,627

)

48,889

Prepaid and other assets

42,271

(2,079

)

40,192

(16,127

)

24,065

Income tax receivable

13,706

15,352

29,058

(2,481

)

26,577

Advertising fund assets, restricted

49,716

(1,367

)

48,349

—

48,349

Assets held for sale

134,297

—

134,297

(55,207

)

79,090

Current assets of discontinued operations

—

—

—

130,713

130,713

Total current assets

657,438

(49,587

)

607,851

—

607,851

Other assets

125,422

(3,348

)

122,074

(3,126

)

118,948

Property and equipment, net

1,024,168

2,547

1,026,715

(617,264

)

409,451

Operating lease right-of-use assets

1,370,355

40,215

1,410,570

(958,777

)

451,793

Deferred commissions

7,246

—

7,246

—

7,246

Intangibles, net

665,896

—

665,896

(31,102

)

634,794

Goodwill

1,403,056

—

1,403,056

(197,526

)

1,205,530

Deferred tax assets

8,206

181

8,387

(1,183

)

7,204

Non-current assets of discontinued operations

—

—

—

1,808,978

1,808,978

Total assets

$

5,261,787

$

(9,992

)

$

5,251,795

$

—

$

5,251,795

Liabilities and shareholders' equity

Current liabilities:

Accounts payable

$

95,260

$

7,348

$

102,608

$

(16,420

)

$

86,188

Accrued expenses and other liabilities

253,880

2,063

255,943

(95,660

)

160,283

Income tax payable

6,860

—

6,860

(1,270

)

5,590

Current portion of long-term debt

33,189

1,510

34,699

(1,003

)

33,696

Tax receivable agreement payable

22,676

—

22,676

—

22,676

Advertising fund liabilities

22,030

3,966

25,996

—

25,996

Current liabilities of discontinued operations

—

—

—

114,353

114,353

Total current liabilities

433,895

14,887

448,782

—

448,782

Long-term debt

2,660,355

2,679

2,663,034

(4,145

)

2,658,889

Deferred tax liabilities

87,485

(4,276

)

83,209

(51,324

)

31,885

Operating lease liabilities

1,303,033

40,041

1,343,074

(903,236

)

439,838

Tax receivable agreement payable

110,935

(338

)

110,597

—

110,597

Deferred revenue

31,314

579

31,893

—

31,893

Long-term accrued expenses and other liabilities

27,436

—

27,436

(25,410

)

2,026

Non-current liabilities of discontinued operations

—

—

—

984,115

984,115

Total liabilities

4,654,453

53,572

4,708,025

—

4,708,025

Preferred Stock $0.01 par value; 100,000,000 shares authorized; none issued or outstanding

—

—

—

—

—

Common stock, $0.01 par value, 900,000,000 shares authorized: and 163,842,248 shares outstanding

1,638

—

1,638

—

1,638

Additional paid-in capital

1,699,851

7,722

1,707,573

—

1,707,573

Accumulated deficit

(1,002,583

)

(90,787

)

(1,093,370

)

—

(1,093,370

)

Accumulated other comprehensive (loss) income

(91,572

)

19,501

(72,071

)

—

(72,071

)

Total shareholders’ equity

607,334

(63,564

)

543,770

—

543,770

Total liabilities and shareholders' equity

$

5,261,787

$

(9,992

)

$

5,251,795

$

—

$

5,251,795

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

Year Ended December 28, 2024

(in thousands)

As Previously Reported

Restatement Impacts

As Restated

Net loss

$

(292,496

)

$

(4,957

)

$

(297,453

)

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

Depreciation and amortization

180,112

1,297

181,409

Share-based compensation expense

48,139

3,957

52,096

Loss (gain) on foreign denominated transactions

29,413

(4,287

)

25,126

(Gain) loss on foreign currency derivatives

(9,174

)

1,569

(7,605

)

Loss (gain) on sale and disposal of businesses, fixed assets, and sale leaseback transactions

35,722

(9,038

)

26,684

Reclassification of interest rate hedge to income

(2,094

)

—

(2,094

)

Bad debt expense

6,672

2,291

8,963

Asset impairment charges and lease terminations

389,242

—

389,242

Amortization of deferred financing costs and bond discounts

9,759

—

9,759

Amortization of cloud computing

8,270

2,555

10,825

(Benefit) expense for deferred income taxes

(66,594

)

10,110

(56,484

)

Loss on extinguishment of debt

205

—

205

Other, net

(22,648

)

18,730

(3,918

)

Changes in operating assets and liabilities, net of acquisitions:

Accounts and notes receivable, net

(48,190

)

10,618

(37,572

)

Inventory

2,618

(4,950

)

(2,332

)

Prepaid and other assets

3,467

(480

)

2,987

Advertising fund assets and liabilities, restricted

(5,031

)

(1,087

)

(6,118

)

Other assets

(85,491

)

8,248

(77,243

)

Deferred commissions

934

—

934

Deferred revenue

832

448

1,280

Accounts payable

29,397

(4,838

)

24,559

Accrued expenses and other liabilities

17,588

(3,961

)

13,627

Income tax receivable

10,795

(23,718

)

(12,923

)

Cash provided by operating activities:

241,447

2,507

243,954

Cash flows from investing activities:

Capital expenditures

(288,504

)

(131

)

(288,635

)

Cash used in business acquisitions, net of cash acquired

(2,990

)

—

(2,990

)

Proceeds from sale leaseback transactions

51,371

—

51,371

Proceeds from sale or disposal of businesses and fixed assets, net of cash sold

299,142

(8,813

)

290,329

Cash provided by (used in) investing activities:

59,019

(8,944

)

50,075

Cash flows from financing activities:

—

Payment of debt extinguishment and issuance costs

(9,646

)

—

(9,646

)

Proceeds from the issuance of long-term debt

274,794

—

274,794

Repayment of long-term debt

(465,443

)

—

(465,443

)

Proceeds from revolving lines of credit and short-term debt

46,000

—

46,000

Repayment of revolving lines of credit and short-term debt

(104,000

)

—

(104,000

)

Repayment of principal portion of finance lease liability

(3,931

)

(1,097

)

(5,028

)

Payment of Tax Receivable Agreement

(38,374

)

—

(38,374

)

Acquisition of non-controlling interest

(644

)

—

(644

)

Tax obligations for share-based compensation

(1,593

)

—

(1,593

)

Cash used in financing activities:

(302,837

)

(1,097

)

(303,934

)

Effect of exchange rate changes on cash

(4,103

)

—

(4,103

)

Net change in cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted

(6,474

)

(7,534

)

(14,008

)

Cash and cash equivalents, beginning of period

176,522

(20,610

)

155,912

Cash included in advertising fund assets, restricted, beginning of period

38,537

—

38,537

Restricted cash, beginning of period

657

—

657

Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, beginning of period

215,716

(20,610

)

195,106

Cash and cash equivalents, end of period

169,954

(28,144

)

141,810

Cash included in advertising fund assets, restricted, end of period

38,930

—

38,930

Restricted cash, end of period

358

—

358

Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, end of period

$

209,242

$

(28,144

)

$

181,098

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

Year Ended December 30, 2023

(in thousands, except per share amounts)

As Previously
Reported

Restatement
Impacts

As Restated

Discontinued
Operations
Reclassification
Impacts

As Restated and
Recast

Net revenue:

Franchise royalties and fees

$

190,367

$

—

$

190,367

$

—

$

190,367

Company-operated store sales

1,526,353

(6,192

)

1,520,161

(380,020

)

1,140,141

Independently-operated store sales

196,395

—

196,395

(196,395

)

—

Advertising contributions

98,850

218

99,068

—

99,068

Supply and other revenue

292,064

(5,607

)

286,457

(5,993

)

280,464

Total net revenue

2,304,029

(11,581

)

2,292,448

(582,408

)

1,710,040

Operating expenses:

Company-operated store expenses

1,004,472

5,801

1,010,273

(290,311

)

719,962

Independently-operated store expenses

109,078

104

109,182

(109,182

)

—

Advertising expenses

97,290

6,092

103,382

—

103,382

Supply and other expenses

158,436

26,971

185,407

(3,851

)

181,556

Selling, general, and administrative expenses

462,117

21,378

483,495

(93,930

)

389,565

Depreciation and amortization

175,296

(437

)

174,859

(98,280

)

76,579

Goodwill impairment

850,970

—

850,970

(850,970

)

—

Asset impairment charges and lease terminations

132,903

—

132,903

(9,084

)

123,819

Total operating expenses

2,990,562

59,909

3,050,471

(1,455,608

)

1,594,863

Operating (loss) income

(686,533

)

(71,490

)

(758,023

)

873,200

115,177

Other expenses, net:

Interest expense, net

164,196

(2,980

)

161,216

(815

)

160,401

Foreign currency transaction gain, net

(3,078

)

(914

)

(3,992

)

(86

)

(4,078

)

Other expenses, net

161,118

(3,894

)

157,224

(901

)

156,323

Loss before taxes from continuing operations

(847,651

)

(67,596

)

(915,247

)

874,101

(41,146

)

Income tax (benefit) expense

(102,689

)

(13,627

)

(116,316

)

121,952

5,636

Net loss from continuing operations

(744,962

)

(53,969

)

(798,931

)

752,149

(46,782

)

Net loss from discontinued operations, net of tax

—

—

—

(752,149

)

(752,149

)

Net loss

$

(744,962

)

$

(53,969

)

$

(798,931

)

$

—

$

(798,931

)

Basic (loss) earnings per share:

Continuing Operations

$

(4.50

)

$

(0.44

)

$

(4.94

)

$

4.65

$

(0.29

)

Discontinued Operations

—

—

—

(4.65

)

(4.65

)

Net basic loss per share

$

(4.50

)

$

(0.44

)

$

(4.94

)

$

—

$

(4.94

)

Diluted (loss) earnings per share:

Continuing Operations

$

(4.53

)

$

(0.41

)

$

(4.94

)

$

4.65

$

(0.29

)

Discontinued Operations

—

—

—

(4.65

)

(4.65

)

Net diluted loss per share

$

(4.53

)

$

(0.41

)

$

(4.94

)

$

—

$

(4.94

)

Weighted average shares outstanding

Basic

161,917

—

161,917

—

161,917

Diluted

161,917

—

161,917

—

161,917

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

Year Ended December 30, 2023

(in thousands)

As Previously Reported

Restatement Impacts

As Restated

Net loss

$

(744,962

)

$

(53,969

)

$

(798,931

)

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

Depreciation and amortization

175,296

(437

)

174,859

Goodwill impairment

850,970

—

850,970

Share-based compensation expense

15,300

4,988

20,288

Gain on foreign denominated transactions

(2,022

)

—

(2,022

)

Gain on foreign currency derivatives

(1,056

)

(914

)

(1,970

)

Loss on sale and disposal of businesses, fixed assets, and sale leaseback transactions

4,909

9,719

14,628

Reclassification of interest rate hedge to income

(2,077

)

—

(2,077

)

Bad debt expense

1,938

8,752

10,690

Asset impairment charges and lease terminations

132,903

—

132,903

Amortization of deferred financing costs and bond discounts

10,307

—

10,307

Amortization of cloud computing

1,923

752

2,675

Benefit for deferred income taxes

(125,804

)

(12,312

)

(138,116

)

Other, net

22,320

675

22,995

Changes in operating assets and liabilities, net of acquisitions:

Accounts and notes receivable, net

13,561

3,699

17,260

Inventory

(11,731

)

7,961

(3,770

)

Prepaid and other assets

(6,877

)

1,378

(5,499

)

Advertising fund assets and liabilities, restricted

(16,861

)

6,014

(10,847

)

Other assets

(39,814

)

—

(39,814

)

Deferred commissions

418

—

418

Deferred revenue

1,937

131

2,068

Accounts payable

7,390

10,607

17,997

Accrued expenses and other liabilities

(52,854

)

7,541

(45,313

)

Income tax receivable

53

(1,184

)

(1,131

)

Cash provided by (used in) operating activities

235,167

(6,599

)

228,568

Cash flows from investing activities:

Capital expenditures

(596,478

)

—

(596,478

)

Cash used in business acquisitions, net of cash acquired

(59,574

)

—

(59,574

)

Proceeds from sale leaseback transactions

194,658

—

194,658

Proceeds from sale or disposal of businesses and fixed assets, net of cash sold

9,987

—

9,987

Cash used in investing activities

(451,407

)

—

(451,407

)

Cash flows from financing activities:

Repayment of long-term debt

(27,971

)

—

(27,971

)

Proceeds from revolving lines of credit and short-term debt

378,000

—

378,000

Repayment of revolving lines of credit and short-term debt

(130,000

)

—

(130,000

)

Repayment of principal portion of finance lease liability

(5,165

)

(405

)

(5,570

)

Share repurchases

(49,956

)

—

(49,956

)

Stock option exercises

6,117

—

6,117

Other, net

(326

)

—

(326

)

Cash provided by (used in) financing activities

170,699

(405

)

170,294

Effect of exchange rate changes on cash

484

—

484

Net change in cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted

(45,057

)

(7,004

)

(52,061

)

Cash and cash equivalents, beginning of period

227,110

(13,606

)

213,504

Cash included in advertising fund assets, restricted, beginning of period

32,871

—

32,871

Restricted cash, beginning of period

792

—

792

Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, beginning of period

260,773

(13,606

)

247,167

Cash and cash equivalents, end of period

176,522

(20,610

)

155,912

Cash included in advertising fund assets, restricted, end of period

38,537

—

38,537

Restricted cash, end of period

657

—

657

Cash, cash equivalents, restricted cash, and cash included in advertising fund assets, restricted, end of period

$

215,716

$

(20,610

)

$

195,106

Disclosure Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts contained in this press release, including statements regarding our strategy, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management, impact of accounting standards and outlook, impairments, and expected market growth are “forward-looking statements” for the purposes of federal and state securities laws, including, among other things, any statements relating to: (i) potential post-closing obligations and liabilities relating to the sale of our car wash businesses; (ii) the current geopolitical environment, including the impact, both direct and indirect, of government actions, such as proposed and enacted tariffs and governmental shutdowns; (iii) our strategy, outlook, and growth prospects; (iv) our operational and financial targets, dividend policy, and capital allocation strategy; (v) general economic trends and trends in our industry and markets; (vi) the risks and costs associated with the integration of, and or ability to integrate, our stores and business units successfully; (vii) our internal control over financial reporting; (viii) the proper application of generally accepted accounting principles in the preparation of our financial statements, which are highly complex and involve many subjective assumptions, estimates, and judgments; and (ix) the competitive environment in which we operate. Forward-looking statements may include, among others, the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” or any other similar words.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results or outcomes could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, many of which are beyond our control. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in or implied by our forward-looking statements include the following: our ability to compete with other businesses in the automotive aftermarket industries; advances and changes in automotive technology; changes in consumer preferences, perceptions, and spending patterns; changes in general economic conditions and the geographic concentration of our locations; our ability to timely recruit and retain qualified accounting personnel; the need to rely on third-party service providers, which could result in significant costs; diversion of management’s time, attention and resources from strategic matters due to remediation efforts related to the material weaknesses in our internal control over financial reporting and disclosure controls and procedures; our inability to maintain an effective system of internal controls; our inability to remediate the material weaknesses in our internal control over financial reporting and disclosure controls and procedures or additional material weaknesses or other deficiencies in the future; the restatement of certain of our previously issued consolidated financial statements; the adverse effect of litigation; the risks and uncertainties, as they may be amended from time to time, set forth in our filings with the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q.

There may be other factors not presently known to us or which we currently consider to be immaterial that could cause our actual results to differ materially from those projected in any forward-looking statements we make.

Forward-looking statements made in this release speak only as of the date hereof. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this earnings release to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The Company has provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The non-GAAP financial measures in this earnings release may differ from similarly titled measures used by other companies.

Non-GAAP Financial Measures in Outlook

Driven Brands includes Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (“Adjusted EBITDA”) and Adjusted Earnings per Share (“Adjusted EPS”) in the Company’s Fiscal Year 2026 Outlook. Adjusted EBITDA and Adjusted EPS are non-GAAP financial measures and have not been reconciled to the most comparable GAAP financial measures because it is not possible to do so without unreasonable efforts due to the uncertainty and potential variability of reconciling items, which are dependent on future events and often outside of management’s control and which could be significant. Because such items cannot be reasonably predicted with the level of precision required, we are unable to provide an outlook for the comparable GAAP measures. Forward-looking estimates of Adjusted EBITDA and Adjusted EPS are made in a manner consistent with the relevant definitions and assumptions noted herein and in our filings with the SEC.

Adjusted Net Income and Adjusted Earnings Per Share

Adjusted Net Income and Adjusted EPS are considered non-GAAP financial measures under the SEC’s rules because they exclude certain amounts included in the net income attributable to Driven Brands common stockholders and diluted earnings per share attributable to Driven Brands common stockholders calculated in accordance with GAAP. Management believes that Adjusted Net Income and Adjusted EPS are meaningful measures to share with investors because they facilitate comparison of the current period performance with that of the comparable prior period. In addition, Adjusted Net Income and Adjusted EPS afford investors a view of what management considers to be Driven Brands’ core earnings performance as well as the ability to make a more informed assessment of such earnings performance with that of the prior period.

The tables below reflect the calculation of Adjusted Net Income and Adjusted Earnings Per Share for the three months and year ended December 27, 2025, compared to the three months and year ended December 28, 2024.

Net Income to Adjusted Net Income and Adjusted Earnings Per Share (Unaudited)

Three Months Ended

Year Ended

(in thousands, except per share data)

December 27,
2025

December 28,
2024

December 27,
2025

December 28,
2024

As Restated

As Restated

Net income (loss) from continuing operations

$

40,717

$

(20,261

)

$

132,073

$

546

Adjustments:

Acquisition related costs(a)

860

822

1,644

2,394

Non-core items and project costs, net(b)

3,143

—

21,560

16,751

Cloud computing amortization(c)

4,384

4,176

17,696

10,081

Share-based compensation expense(d)

6,116

13,216

32,079

50,881

Foreign currency transaction (gain) loss, net(e)

86

11,441

(14,715

)

17,530

Impairment, notes receivable loss, (gain) loss on sale of assets, net, and closed store expenses(f)

(872

)

49,207

63,160

84,236

Loss on debt extinguishment (g)

810

—

5,392

205

Amortization related to acquired intangible assets(h)

5,168

5,402

18,643

22,653

Acceleration of interest rate hedge(i)

—

—

(4,422

)

—

Valuation allowance (reversal) for deferred tax asset(j)

(433

)

12,668

(37,833

)

12,668

Adjusted net income before tax impact of adjustments

59,979

76,671

235,277

217,945

Tax impact of adjustments(k)

(3,574

)

(20,514

)

(36,043

)

(43,113

)

Adjusted net income from continuing operations

$

56,405

$

56,157

$

199,234

$

174,832

Basic earnings (loss) per share from continuing operations

$

0.25

$

(0.13

)

$

0.80

$

—

Diluted earnings (loss) per share from continuing operations

$

0.25

$

(0.13

)

$

0.80

$

—

Adjusted basic earnings per share from continuing operations(1)

$

0.34

$

0.34

$

1.21

$

1.07

Adjusted diluted earnings per share from continuing operations(1)

$

0.34

$

0.34

$

1.21

$

1.07

Weighted average shares outstanding

Basic

164,044

160,424

162,836

160,319

Diluted

165,015

160,424

163,852

161,210

Weighted average shares outstanding for Adjusted Net Income

Basic

164,044

160,424

162,836

160,319

Diluted

165,015

161,778

163,852

161,210

(1) Adjusted Earnings Per Share is calculated under the two-class method. Under the two-class method, adjusted earnings per share is calculated using adjusted net income attributable to common shares, which is derived by reducing adjusted net income by the amount attributable to participating securities. Adjusted Net Income attributable to participating securities used in the basic earnings per share calculations was less than $1 million and $2 million for the three months and year ended December 27, 2025, respectively, and $1 million and $3 million for the three months and year ended December 28, 2024, respectively. Adjusted Net Income attributable to participating securities used in the diluted earnings per share calculation was less than $1 million and $2 million for the three months and year ended December 27, 2025 and less than $1 million for the three months and year ended December 28, 2024.

Adjusted EBITDA

Adjusted EBITDA is considered a non-GAAP financial measure under the Securities and Exchange Commission’s (“SEC”) rules because it excludes certain amounts included in net income calculated in accordance with GAAP. Management believes that Adjusted EBITDA is a meaningful measure to share with investors because it facilitates comparison of the current period performance with that of the comparable prior period. In addition, Adjusted EBITDA affords investors a view of what management considers to be Driven Brand’s core operating performance as well as the ability to make a more informed assessment of such operating performance as compared with that of the prior period.

Please see the company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024, filed with the SEC on February 26, 2025, for additional information on Adjusted EBITDA. The tables below reflect the calculation of Adjusted EBITDA for the three months and year ended December 27, 2025, compared to the three months and year ended December 28, 2024.

Net Income (Loss) to Adjusted EBITDA Reconciliation (Unaudited)

Three Months Ended

Year Ended

(in thousands)

December 27,
2025

December 28,
2024

December 27,
2025

December 28,
2024

As Restated

As Restated

Net income (loss) from continuing operations

$

40,717

$

(20,261

)

$

132,073

$

546

Income tax (benefit) expense

7,923

(11,378

)

(12,842

)

24,547

Interest expense, net

28,628

35,993

121,202

156,991

Depreciation and amortization

20,132

21,079

81,858

78,989

EBITDA

97,400

25,433

322,291

261,073

Acquisition related costs(a)

860

822

1,644

2,394

Non-core items and project costs, net(b)

3,143

—

21,560

16,751

Cloud computing amortization(c)

4,384

4,176

17,696

10,081

Share-based compensation expense(d)

6,116

13,216

32,079

50,881

Foreign currency transaction (gain) loss, net(e)

86

11,441

(14,715

)

17,530

Impairment, notes receivable loss, (gain) loss on sale of assets, net, and closed store expenses(f)

(872

)

49,207

63,160

84,236

Loss on debt extinguishment(g)

810

—

5,392

205

Adjusted EBITDA

$

111,927

$

104,295

$

449,107

$

443,151

Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share Footnotes

(a) Consists of acquisition costs as reflected within the consolidated statements of operations, including legal, consulting and other fees, and expenses incurred in connection with acquisitions completed during the applicable period, as well as inventory rationalization expenses incurred in connection with acquisitions. As acquisitions occur in the future, we expect to incur similar costs and, under U.S. GAAP, such costs relating to acquisitions are expensed as incurred and not capitalized.

(b) Consists of discrete items and project costs, including third-party professional costs associated with strategic transformation initiatives as well as non-recurring payroll-related costs and non-ordinary course legal settlements.

(c) Includes non-cash amortization expenses relating to cloud computing arrangements.

(d) Represents non-cash share-based compensation expense.

(e) Represents foreign currency transaction (gains) losses, net that primarily related to the remeasurement of our intercompany loans as well as gains and losses on cross-currency swaps.

(f) Consists of the following items (i) asset impairments, (ii) (gains) losses, net on sale leasebacks, disposal of assets, including assets held for sale, or sale of business; and (iii) loss on fair value of the Seller Note.

(g) Represents charges incurred related to the Company’s full repayment of the Term Loan Facility in conjunction with the sale of the U.S. Car Wash business and the issuance of the Series 2025-1 Senior Notes in the current year and charges incurred related to the Company’s partial repayment of Senior Secured Notes in conjunction with the sale of its Canadian distribution business in the prior year.

(h) Consists of amortization related to acquired intangible assets as reflected within depreciation and amortization in the consolidated statements of operations.

(i) Consists of the accelerated amortization of an interest rate hedge associated with the Series 2022-1 Senior Securitization Notes, which was refinanced in October 2025.

(j) Represents valuation allowances on income tax carryforwards in certain jurisdictions that are not more likely than not to be realized.

(k) Represents the tax impact of adjustments associated with the reconciling items between net income from continuing operations and Adjusted Net Income, excluding the provision for uncertain tax positions and valuation allowance for certain deferred tax assets. To determine the tax impact of the deductible reconciling items, we utilized statutory income tax rates ranging from 9% to 36% depending upon the tax attributes of each adjustment and the applicable jurisdiction.

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

ADJUSTED EBITDA RECONCILIATION (UNAUDITED)

Three Months Ended

Year Ended

(in thousands)

December 27,
2025

December 28,
2024

December 27,
2025

December 28,
2024

As Restated

As Restated

Take 5

$

107,314

$

98,975

$

418,676

$

380,155

Franchise Brands

42,411

42,615

178,838

190,759

Auto Glass Now

3,196

3,603

25,874

12,597

Corporate and Other

(40,994

)

(40,898

)

(174,281

)

(140,360

)

Adjusted EBITDA

$

111,927

$

104,295

$

449,107

$

443,151

DRIVEN BRANDS HOLDINGS INC. AND SUBSIDIARIES

ADDITIONAL INFORMATION ON KEY PERFORMANCE INDICATORS (UNAUDITED)

Three Months Ended December 27, 2025

(in thousands)

Take 5

Franchise
Brands

Auto Glass
Now

Corporate
and Other

Total

System-wide Sales

Franchise stores

$

155,290

$

1,013,945

$

—

$

—

$

1,169,235

Company-operated stores

256,115

3,875

56,298

—

316,288

Total System-wide Sales

$

411,405

$

1,017,820

$

56,298

$

—

$

1,485,523

Store Count (in whole numbers)

Franchise stores

530

2,686

—

—

3,216

Company-operated stores

812

13

211

—

1,036

Total Store Count

1,342

2,699

211

—

4,252

Three Months Ended December 28, 2024

As Restated

(in thousands)

Take 5

Franchise
Brands

Auto Glass
Now

Corporate
and Other

Total

System-wide Sales

Franchise stores

$

124,620

$

1,034,255

$

—

$

—

$

1,158,875

Company-operated stores

237,817

4,440

53,137

799

296,193

Total System-wide Sales

$

362,437

$

1,038,695

$

53,137

$

799

$

1,455,068

Store Count (in whole numbers)

Franchise stores

463

2,666

—

—

3,129

Company-operated stores

718

13

217

—

948

Total Store Count

1,181

2,679

217

—

4,077

Year Ended December 27, 2025

(in thousands)

Take 5

Franchise
Brands

Auto Glass
Now

Corporate
and Other

Total

System-wide Sales

Franchise stores

$

596,968

$

4,200,793

$

—

$

—

$

4,797,761

Company-operated stores

1,020,113

17,241

257,604

—

1,294,958

Total System-wide Sales

$

1,617,081

$

4,218,034

$

257,604

$

—

$

6,092,719

Store Count (in whole numbers)

Franchise stores

530

2,686

—

—

3,216

Company-operated stores

812

13

211

—

1,036

Total Store Count

1,342

2,699

211

—

4,252

Year Ended December 28, 2024

As Restated

(in thousands)

Take 5

Franchise
Brands

Auto Glass
Now

Corporate
and Other

Total

System-wide Sales

Franchise stores

$

465,059

$

4,287,002

$

—

$

—

$

4,752,061

Company-operated stores

920,518

16,372

237,500

4,393

1,178,783

Total System-wide Sales

$

1,385,577

$

4,303,374

$

237,500

$

4,393

$

5,930,844

Store Count (in whole numbers)

Franchise stores

463

2,666

—

—

3,129

Company-operated stores

718

13

217

—

948

Total Store Count

1,181

2,679

217

—

4,077

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