Market Signal Briefing

US spot Bitcoin (BTC) exchange-traded funds posted a combined net inflow of $202 million on Sunday ET, extending their streak of positive daily flows to six sessions and reinforcing the narrative of renewed 'institutional demand' after a choppy start to March.The latest intake came as ETF activity continues to serve as a key proxy for risk appetite in the crypto market, with traders monitoring whether steady allocations can offset bouts of volatility tied to macro headlines and shifting expectations for US monetary policy.In parallel, US, UK, and Canadian authorities announced expanded cross-border coordination to curb crypto-enabled fraud under an initiative dubbed 'Operation Atlantic', signaling a more synchronized enforcement posture aimed at disrupting scam networks that exploit digital assets for rapid settlement and obfuscation.Regulators and law enforcement agencies have increasingly emphasized that fraud—not just market abuse—has become a primary vector for consumer harm in crypto, and the new coordination suggests more joint investigations, intelligence sharing, and asset-tracing efforts across major financial jurisdictions.In South Korea, the National Police Agency moved to update internal rules for the seizure and custody of virtual assets, including—according to local reports—its first dedicated guidance for handling 'privacy coins', reflecting a broader push to standardize evidence preservation and chain-of-custody procedures for on-chain assets.On the market-structure side, on-chain analytics platform Onchain Lens reported that the WLFI team transferred a total of 20 million WLFI tokens to the exchanges Gate and OKX, a type of flow that investors often watch for potential 'liquidity provisioning' or prospective sell-side activity, though transfers alone do not confirm intent.In Europe, Spain’s Basque regional police warned that crypto-related offenses are rising sharply in the area, echoing a wider trend across the continent where law enforcement has pointed to growth in investment scams, account takeovers, and cross-border laundering tied to digital-asset rails.Asia also saw notable corporate and platform developments: Singapore-based digital payments firm dtcpay said it raised $10 million in a Series A round, highlighting continued investor interest in regulated on-ramps and compliant settlement infrastructure despite tighter global scrutiny of crypto payments.Binance, the world’s largest crypto exchange by volume, announced the addition of four new U-margined cross-margin pairs—AAVE/U, TAO/U, UNI/U, and WLFI/U—underscoring the exchange’s ongoing expansion of derivatives offerings as traders seek capital-efficient exposure and hedging tools.Separately, Binance pushed back against a foreign media report concerning alleged Iran-linked fund flows, issuing a compliance-focused statement as major platforms face sustained pressure to demonstrate robust sanctions screening and transaction monitoring in an increasingly regulated environment.Beyond exchanges, prediction market Polymarket resumed Hong Kong weather-related markets after switching its data source to the Hong Kong Observatory, a reminder that 'oracle' selection and data integrity remain central to how real-world events are translated into on-chain or quasi-on-chain markets.In industry leadership news, crypto research firm Messari said co-founder Eric Turner stepped down as CEO, with Diran Lee appointed as his successor—an executive change that comes as research and data providers compete to differentiate amid consolidation pressures and evolving demand from institutions.Taken together, the steady ETF inflows, stepped-up international fraud cooperation, and a fresh round of exchange and infrastructure updates point to a market balancing 'capital formation' with intensifying oversight—an equilibrium likely to shape crypto’s next phase as participation broadens beyond early adopters.Article Summary by TokenPost.ai

🔎 Market Interpretation

Spot BTC ETF flows reassert as sentiment gauge: US spot Bitcoin ETFs recorded $202M net inflow, extending a six-session positive streak—supporting the view that institutional allocation is stabilizing demand after early-March volatility.

Macro sensitivity remains the swing factor: Market participants continue to treat ETF creation/redemption activity as a proxy for risk appetite, watching whether consistent inflows can offset volatility tied to US monetary policy expectations and macro headlines.

Oversight tightens alongside adoption: Expanded enforcement coordination (US/UK/Canada) and updated policing procedures (South Korea) signal a more mature regulatory environment that may reduce fraud over time but raises compliance demands for platforms and users.

Token-to-exchange transfers add supply-watch pressure: The reported transfer of 20M WLFI tokens to Gate and OKX is a monitorable on-chain supply event; while not proof of selling, it can increase perceived near-term distribution risk.

Derivatives expansion reflects continued leverage demand: Binance adding new U-margined cross-margin pairs indicates ongoing growth in capital-efficient trading and hedging, which can deepen liquidity but also amplify liquidation-driven moves.

💡 Strategic Points

Track ETF flow persistence, not single-day prints: A multi-session inflow streak is more informative for positioning than an isolated net inflow day; watch for reversals that may foreshadow broader risk-off shifts.

Expect higher fraud enforcement intensity: “Operation Atlantic” suggests more cross-border investigations, intelligence sharing, and asset tracing—raising the probability of freezes/seizures on tainted funds and stricter onboarding/monitoring by intermediaries.

Prepare for stronger chain-of-custody standards: South Korea’s updated rules for seizure/custody of virtual assets (including privacy coins) points to enhanced evidentiary rigor; firms operating locally may face more formalized compliance and documentation needs.

Interpret exchange inflows cautiously: Large token transfers to exchanges can indicate liquidity provisioning, market-making, collateral moves, or intent to sell; confirm with follow-through signals (order-book pressure, deposits across multiple venues, sustained outflows from team wallets).

Derivatives listings can change microstructure: New cross-margin pairs may increase hedging efficiency and volumes, but also raise correlated risk across positions; traders should reassess margin utilization and liquidation thresholds.

Oracle/data-source choices are market-critical: Polymarket switching to the Hong Kong Observatory underscores that data integrity is a core risk variable for prediction markets—participants should verify oracle methodology before sizing exposure.

Industry consolidation/leadership shifts matter for data users: Messari’s CEO transition highlights competitive pressure among research/data providers; institutional users may reassess vendor durability, coverage quality, and conflict-of-interest safeguards.

📘 Glossary

Spot Bitcoin ETF: An exchange-traded fund that holds (directly or via custodied arrangements) spot BTC exposure, allowing investors to access Bitcoin through traditional brokerage accounts.

Net inflow: The value of new money entering a fund minus redemptions/withdrawals over a time period.

Institutional demand: Buying/allocations attributed to professional investors (asset managers, hedge funds, corporates), often inferred from products like ETFs and prime-broker flows.

Risk appetite: The market’s willingness to hold riskier assets; higher appetite typically supports crypto prices and inflows, while lower appetite favors cash/treasuries.

Operation Atlantic: A reported cross-border coordination initiative (US/UK/Canada) aimed at curbing crypto-enabled fraud through joint investigations and intelligence sharing.

Crypto-enabled fraud: Scams that use crypto for payment, laundering, or rapid cross-border settlement (e.g., investment scams, impersonation, account takeovers).

Chain of custody: Documented handling of evidence from seizure to storage to ensure integrity—applied here to on-chain assets and access credentials.

Privacy coins: Cryptocurrencies designed to obscure transaction details (e.g., sender/receiver/amount), complicating tracing and compliance.

On-chain analytics: Tools that analyze public blockchain activity (wallet flows, exchange deposits, token movements) to infer behavior.

Liquidity provisioning: Supplying tokens/quotes to facilitate trading, often by market makers; can involve transferring assets to exchanges.

U-margined (USDT-margined) contracts: Derivatives settled and margined in a stablecoin (commonly USDT), rather than the underlying coin.

Cross-margin: Using shared margin across multiple positions so gains/losses are netted; improves capital efficiency but can spread liquidation risk.

Sanctions screening: Compliance processes to detect and block prohibited counterparties/regions and suspicious flows.

Oracle: A mechanism that supplies external real-world data (prices, outcomes, weather) to on-chain or blockchain-adjacent applications.

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After weeks of continuous downward pressure, XRP is currently trading close to $1.53, indicating a modest recovery. Despite the asset's recent short-term rebound, its overall market structure still shows uncertainty, as the cryptocurrency market as a whole finds it difficult to regain steady bullish momentum.

Clear guidelines upwardsAfter its sell-off in February, XRP has technically formed a gradually rising support line, indicating that buyers are trying to stabilize the price. The asset has been able to test nearby resistance levels created by short-term moving averages thanks to this gradual upward movement, which has helped it rise above the immediate support range around $1.43.

XRP/USDT Chart by TradingViewBut even though the price structure has improved, XRP is still stuck below a number of significant resistance barriers. The asset's potential to rise is still constrained by the 26-day and 50-day exponential moving averages, which function as dynamic ceilings. The recovery is still precarious until XRP can clearly break through these levels.

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On-chain metrics are also starting to gain popularity. According to exchange reserve data, XRP is getting close to the crucial three billion token threshold. The reserve level is currently close to 2.8 billion coins. Increasing exchange reserves are frequently a sign that more tokens are being transferred to trading platforms, which usually comes before more selling activity.

Exchange migration in tactLarge-scale supply migration to exchanges increases the likelihood of profit-taking or liquidation. Given XRP's recent rebound, this is especially crucial because traders who bought the asset during the recent decline might see the current price levels as a chance to sell their positions.

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The market may experience a psychological trigger if the exchange reserve level surpasses $3 billion. A milestone like this could indicate that exchanges are becoming more liquid, which could make it easier for major holders to sell their inventory. Similar reserve increases have been linked to increased volatility and stronger downward pressure in past cycles.

XRP needs to break through adjacent resistance levels and hold above the rising support line in order to continue its recovery trajectory. If not, the asset may return to consolidation or even enter a new phase of correction due to an increase in exchange supply and waning bullish momentum.

The XRP (XRP +3.31%) and Bitcoin (BTC +1.31%) cryptocurrencies both set new record highs during 2025. But the last several months haven't been very fruitful, with XRP losing 62% of its peak value, and Bitcoin plunging by 44%.

Investors are trimming their exposure to speculative assets like cryptocurrency amid heightened political and economic turmoil, but XRP and Bitcoin possess unique qualities that could create value during the long term. Yet, I think one is a better buy than the other. 

Image source: Getty Images.

The case for XRP Ripple is the creator of a unique payments network called Ripple Payments, which lets banks settle cross-border transactions with one another directly, regardless of what existing infrastructure they use. It eliminates the need for financial intermediaries, so transfers land almost instantly, at negligible cost.

Ripple created XRP to standardize transactions through Ripple Payments. A U.S. bank can send XRP to an Italian bank rather than sending U.S. dollars for conversion into euros, cutting out costly foreign exchange fees. Typically, a transfer using XRP costs just 0.00001 tokens, or a fraction of one U.S. cent.

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In theory, demand for XRP should increase as more banks use Ripple Payments, thus increasing its value. But there are some structural issues to consider. First, bridge currencies aren't designed to be held for the long term. In my above example, the U.S. bank would be a buyer of XRP, but the Italian bank almost right away would be an equal seller when it converts the tokens into euros for use in its business. As a result, the net value of XRP wouldn't actually change.

Second, XRP leaves banks exposed to losses, even during brief holding periods, because of its high volatility. Ripple introduced a stablecoin called Ripple USD in late 2024 to solve this issue. As their name implies, stablecoins are designed to maintain a stable value, so they offer practically zero volatility. This makes them far more suitable for many types of transactions.

That brings me to the third and final issue. Banks don't have to use XRP to benefit from instant cross-border transactions through Ripple Payments, because in addition to Ripple USD, the network also supports the use of fiat currencies. That is why the value of XRP hasn't necessarily increased in line with the growing adoption of Ripple Payments.

The case for Bitcoin Bitcoin is the world's largest cryptocurrency. In fact, its market capitalization of $1.4 trillion accounts for more than half the total value of all coins and tokens in circulation across the crypto industry, which currently stands at $2.4 trillion.

But unlike XRP, Bitcoin is rarely used in transactions. Only 6,773 businesses accept it as payment for goods and services, according to crypto directory Cryptwerk. That's a drop in the bucket compared to the 360 million registered businesses worldwide. Instead, Bitcoin draws most of its value from investors who consider it to be a legitimate store of value.

The cryptocurrency has a capped supply of 21 million coins, which creates the perception of scarcity. It is fully decentralized, so it can't be controlled by any single person, company, or government. Investors also feel confident parking their money in Bitcoin because it is built on a secure and transparent system of record called the blockchain.

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Thanks to the broad availability of exchange-traded funds (ETFs) on stock exchanges, financial advisors and institutional investors can own Bitcoin in a safe and regulated manner. Most of them previously avoided it because owning it through a digital crypto wallet carried too much risk (these wallets are susceptible to hacks resulting in irrecoverable losses). The U.S. Securities and Exchange Commission approved the first Bitcoin ETFs in 2024, and they have since accumulated 6% of all circulating supply, worth more than $89 billion.

With all that said, Bitcoin's status as a store of value was called into question in 2025. It ended the year with a loss of 5%, despite rising political and economic uncertainty that sent actual gold soaring by 64%. In crunch time, investors voted with their money, and they ditched Bitcoin for real gold.

The verdict Given some of the structural challenges facing XRP, its value is likely to be determined by speculative investors more so than by demand from the Ripple Payments network. That isn't a recipe for sustainable long-term upside, and history suggests that the future could bring further declines from here.

To be clear, Bitcoin is also a speculative asset, but its decentralized structure and its broader adoption in the investment community might increase its chances of delivering long-term gains compared to XRP. Its performance last year will certainly make some investors wary about its status as a store of value, though, which could affect its returns from here.

Truthfully, I wouldn't buy XRP or Bitcoin over revenue-generating, hard assets like stocks or real estate. But it's understandable why some investors want exposure to cryptocurrency, since it can add diversification to a traditional portfolio. In that case, I think Bitcoin is a better buy than XRP.

Bitcoin’s underlying structure continues to strengthen. In the early hours of Tuesday, the asset briefly reclaimed $76,000, a level last seen on the 4th of February, extending its recovery momentum.

At the core of this move is a shift in supply dynamics. On-chain data shows a sustained slowdown in Bitcoin inflows to centralized exchanges—key venues where sell pressure typically materializes. This trend points to reduced intent to sell across the market.

Long-term holders tighten supply at key levels Long-term holders have emerged as the dominant force behind Bitcoin’s [BTC] improving fundamentals.

Data from Alphractal tracking Coin Days Destroyed (CDD)—a metric used to measure whether older coins are being spent—shows that long-term holders have remained largely inactive. In effect, older supply is staying off the market.

More notably, this inactivity has pushed holding behavior to a four-year extreme, last observed in 2022, a period that preceded a strong bullish phase.

Source: Alphractal This reflects a clear shift in conviction: investors are opting to hold rather than distribute, typically a signal that expected returns outweigh current selling incentives.

The Binary CDD, a supply-adjusted variant of the metric, confirms this trend. It continues to show minimal distribution from long-term holders, reinforcing the view that structural sell pressure remains limited.

This tightening supply backdrop has coincided with a 12.84% price increase since the 9th of March, supporting the broader upward trend.

Supply conditions remain supportive despite ESR rise From a supply standpoint, market conditions remain constructive, though not without nuance. The Exchange Supply Ratio (ESR) has risen to 0.13 after trending upward over the past two days.

Under normal conditions, a rising ESR—indicating a higher proportion of Bitcoin held on exchanges—would suggest increasing sell pressure. However, current price action tells a different story.

Bitcoin’s price has continued to climb alongside the ESR, creating a divergence from typical behavior. Rather than signaling distribution, this suggests that exchange inflows may not be translating into immediate selling, pointing instead to a more complex repositioning of supply.

Source: CryptoQuant A closer look at exchange reserves provides further clarity. Total Bitcoin held on exchanges continues to decline, indicating that the broader trend still favors supply contraction.

This dynamic limits the amount of readily available liquidity for sell-offs, reducing downside risk even if short-term sentiment shifts.

Demand shows early signs of strength While supply continues to tighten, sustained upside depends on the demand keeping pace.

Institutional flows offer a key signal. According to SosoValue, spot Bitcoin ETFs have recorded six straight days of net inflows since the 9th of March, aligning with the start of the current rally.

These inflows total approximately $968.94 million, marking the longest accumulation streak recorded so far in 2025. This shift suggests renewed institutional participation and a stronger conviction at current price levels.

Although this demand has yet to trigger a decisive breakout, continued inflows could provide the necessary momentum to clear the $75,000 resistance zone and establish a stronger upward trend.

Final Summary Long-term Bitcoin holders are increasing their conviction, signaling confidence in near-term upside. Spot Bitcoin ETFs have recorded six consecutive days of inflows, marking their longest buying streak in over a year.

Ethereum price rallied to a six-week high of $2377.64 on Tuesday as institutional investors continue to accumulate the asset.

Summary

Ethereum price climbed to a six-week high near $2,377 as institutional accumulation and continued spot ETF inflows supported bullish momentum. Tom Lee’s treasury firm Bitmine purchased nearly 61,000 ETH over the past week, lifting its total holdings to roughly 4.6 million ETH. A short squeeze above $2,300 triggered liquidations of clustered bearish positions, adding momentum to the rally. According to data from crypto.news, Ethereum (ETH) price rose 6% to hit $2,377.64 on March 17, its highest level since the beginning of February, before settling around $2,334 at press time. It extends its positive run for the fourth straight day, clocking gains of 13% in the period.

A major catalyst driving its gains came from aggressive buying from institutional investors. Notably, Tom Lee’s Ethereum Treasury company, Bitmine, has been a driving force that bolstered market confidence. Notably, the firm purchased nearly 61,000 ETH in the past week, bringing its total ETH stash to nearly 4.6 million, or around 3.81% of the ETH token supply.

In its latest Ethereum acquisition, Lee noted that the treasury company has accelerated purchases as analysts at the firm believe that the asset’s price has nearly approached a local bottom amidst the ongoing crypto bloodbath triggered by macroeconomic and geopolitical concerns.

Ethereum, along with other major crypto assets, has so far outperformed U.S. tech stocks since the start of the U.S.-Iran war, which sent crude oil prices surging to multi-year highs, sparking concerns of runaway inflation.

Ethereum price has also been backed by back-to-back inflows in spot Ethereum ETFs, which have drawn in retail attention. Data from SoSoValue show that U.S. spot ETH ETFs have hit a 5-day inflow streak for the first time since mid January, drawing in $248 million in net inflows.

Meanwhile, today’s rally was also supported by a short squeeze after ETH broke past $2,300, where a large cluster of short positions was liquidated.

Ethereum price analysis On the daily chart, Ethereum price has recently broken above the 20-day and 50-day moving averages, suggesting that bulls are regaining control of the market. It has also surpassed the $2,200 key resistance that had served as a formidable ceiling in at least two earlier attempts in March.

ETH/USDT 1-day price chart — March 17 | Source: crypto.news The Supertrend has flashed green for the first time since Jan. 20. Typically, when the Supertrend indicator turns green, an asset’s price enters a sustained bullish phase. Additionally, the 20-day and 50-day SMAs are approaching a bullish crossover, a sign that upward momentum is gathering strength.

For now, $2,594 acts as the next key resistance area bulls would likely aim to challenge. A break above that level would mark a major shift in market sentiment and could lay the groundwork for a retracement towards the $3,000 psychological milestone.

On the contrary, failure to hold the 50-day SMA at $2,118 could lead to a retest of lower support levels as sellers look to capitalize on any signs of weakness.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Key Highlights XRP posted an 11% gain over the past seven days, reaching $1.53 and surpassing BNB to retake the fourth position by market capitalization at $93.4 billion. Binance futures open interest increased 59% since October 2025, reaching 353 million XRP as traders add leveraged positions during the uptrend. Veteran holders added more than 351 million XRP on March 1 alone, marking the most significant daily accumulation in recent months. XRP exchange-traded funds experienced $28 million in net withdrawals during the previous week as institutional participation declined while retail activity strengthens. The $1.55 price level continues to serve as significant resistance, with recent bearish price action suggesting potential for short-term correction. XRP experienced notable upward momentum throughout the past week, advancing 11% to settle near $1.53 as of March 17, 2026. This price action enabled the digital asset to leapfrog BNB, reclaiming the fourth position among cryptocurrencies by total market value at $93.4 billion.

XRP Price Daily transaction volume surged by 125% to reach $3.22 billion as the token breached a critical resistance threshold around $1.40. This price point had capped upward movement for several weeks, making the breakthrough particularly noteworthy for market participants.

This upward movement unfolds against a backdrop of significant macroeconomic stress. Brent crude oil continues trading near $100 per barrel following persistent supply chain complications in the Strait of Hormuz related to the Iran situation, which has now extended into its third week.

Long-Term Investors Increase Positions Despite Global Uncertainty Contrary to typical risk-off behavior during periods of macroeconomic stress, XRP’s established holders have intensified their accumulation activities.

Data from Glassnode reveals that long-term holders accumulated more than 351 million XRP on March 1, occurring just one day following the escalation of the Iran conflict. This represents the most substantial single-day accumulation recorded in several months.

Source; Glassnode This accumulation pattern has persisted throughout the subsequent period, with consistent net purchasing driving the indicator to its strongest monthly reading since May 2025. Such on-chain behavior typically emerges during market recovery cycles.

Retail participation is showing renewed strength as well. XRP futures open interest expanded to $2.66 billion on Monday, climbing from $2.56 billion recorded the previous day. The Fear & Greed Index improved to 23 from 8 the week prior, although it continues to reflect extreme fear conditions.

Institutional Flows and Token Distribution Controversy Institutional capital has shifted away from XRP products recently. Investment vehicles tracking XRP registered $76 million in net outflows last week, with exchange-traded funds representing $28 million of that total. Monthly outflows have accumulated to $133 million, reducing total assets under management to $2.4 billion.

Ripple Labs is simultaneously confronting scrutiny regarding its token distribution practices. Industry observers have questioned whether the company’s sale of premined XRP to retail participants, followed by deployment of those funds toward acquisitions, non-XRP initiatives, and equity buybacks, creates an imbalanced value proposition.

Ripple’s Chief Technology Officer David Schwartz has addressed these concerns, though detractors maintain the current structure disproportionately advantages Ripple Labs shareholders over XRP token holders.

From a chart perspective, XRP encountered rejection near its 50-day exponential moving average at $1.55. The digital asset continues trading beneath both its 50-day and 200-day exponential moving averages. A definitive close above $1.60 would be required to signal a meaningful trend reversal.

Binance open interest registered 353.49 million XRP on March 17, nearing but remaining below the pre-correction high of 400 million observed in September 2025.

TLDR Solana experienced a 7%+ rally within 24 hours, touching $97.67 while the overall crypto market gained approximately 3.6%. The network’s total value locked increased by 25% throughout the past 30 days, demonstrating renewed investor confidence. SOL maintains trading above the $92 mark and its 100-hour simple moving average, with bullish support establishing at $94. Critical resistance points are positioned at $98 and $100, while downside support exists at $92 and $88. The token has appreciated over 40% since hitting its February bottom, as the RSI indicator advances toward 60 from previously oversold territory. Solana has delivered an impressive 24-hour performance, rallying more than 7% to peak at $97.67 before experiencing a modest retracement to settle around the $95 zone. This upward movement coincides with a broader cryptocurrency market recovery that saw gains of approximately 3.6% during the identical timeframe.

Solana (SOL) Price Currently, SOL maintains its position above the $92 threshold and trades above its 100-hour simple moving average. Technical analysis reveals a bullish trend line forming with critical support established at $94 on the hourly timeframe, according to data sourced from Kraken.

Critical Resistance Zones Emerge The cryptocurrency now encounters resistance around the $95 level, with the subsequent barrier positioned at $98. The psychologically significant $100 threshold represents the primary challenge ahead. Successfully breaking and closing above $100 could pave the way toward $105, with potential extension to $112.

Conversely, should SOL fail to maintain support above $92, the next cushion sits at $88. Breaking beneath $88 would likely bring the $82 level into play.

While the recent upswing correlates with broader market stabilization, Solana has notably outpaced the majority of alternative top-10 cryptocurrencies during this same period.

the upper parameter of this range on $sol has been rejecting for weeks but looks like it may be coming to an end soon.

eth already looks like its well and truly broken out now and probably paving the way forward for the rest of the market.

time to climb the wall of worry, all… pic.twitter.com/tRkitjllxr

— Bluntz (@Bluntz_Capital) March 16, 2026

On-Chain Metrics Validate Price Action The total value locked within Solana’s ecosystem expanded by 25% over the preceding 30-day period. This metric, which quantifies the amount of capital deployed within a blockchain’s infrastructure, indicates accelerating platform utilization when showing this magnitude of growth.

Source: DefiLlama Continuous developer engagement and consistent decentralized application deployments across the network have persisted. These fundamental on-chain indicators have contributed to supporting the current bullish price trajectory.

Solana has appreciated more than 40% from its February trough. The Relative Strength Index has recovered toward the 60 threshold after rebounding from oversold conditions experienced earlier this year.

Price action has been oscillating within a range bounded by $80 support and $95 resistance throughout recent weeks, creating a consolidation formation that market participants frequently monitor for potential breakout opportunities.

The 200-day moving average continues to reside above present price levels, suggesting the long-term directional bias hasn’t completely reversed yet.

SOL is currently valued at approximately $94.62, commanding a market capitalization near $54 billion, with a 52-week trading range spanning from $70.61 to $252.78.

Key Takeaways On March 16, ADA completed a breakout from a falling wedge formation, suggesting a potential trend reversal from recent selling pressure. Technical indicators show promise: RSI registers 56.41 while MACD displays a bullish crossover, indicating strengthening buyer momentum. Price action remains constrained around $0.284, with ADA struggling to overcome the critical $0.305 resistance barrier. Net capital outflows from futures markets reached $13.79M over 24 hours, reflecting persistent short-term bearish sentiment. Cardano’s DeFi ecosystem expanded with USDCx integration, injecting $15M in fresh liquidity and pushing total value locked to $142M from $127M. Cardano (ADA) successfully escaped a falling wedge formation on its daily timeframe this past Monday, March 16. This classic chart pattern typically indicates an impending transition from bearish dominance to bullish control.

Cardano (ADA) Price Market technician ZAYK Charts highlighted the development, emphasizing that increasing trade volume validates the breakout’s authenticity. Market participants are now focusing on $0.57 as the next significant price barrier should upward momentum persist.

However, despite this encouraging technical development, ADA continues hovering near $0.284. The cryptocurrency couldn’t maintain ground above the $0.292–$0.293 range, where profit-taking has emerged twice before.

The daily Supertrend indicator remains positioned at $0.305, functioning as a technical barrier. Without a decisive daily close above this threshold, the overall market structure stays bearish-to-sideways.

Derivatives market data reinforces near-term hesitation. Over the last day, net capital departures totaled $13.79M. Shorter intervals showed more pronounced exits, with 4-hour and 8-hour periods recording outflows of $16.62M and $17.16M respectively.

Mixed Signals From Technical Metrics The Relative Strength Index currently reads 56.41, surpassing its 14-period average of 44.94. This positioning provides additional upside runway before approaching the overbought threshold of 70.

The MACD configuration displays a bullish signal, with its fast line positioned above the signal line. Sequential positive histogram bars indicate gathering upward pressure over recent sessions.

Cardano $ADA is setting up for a bullish breakout!

45 days of sideways chop is nearing an end. The key resistance is $0.304, which is the upper boundary of this channel.

If we clear $0.304, I’m targeting a rapid move into the liquidity gaps at:

• $0.338
• $0.376 pic.twitter.com/Pp8PEkkV8B

— Ali Charts (@alicharts) March 17, 2026

Market observer Ali Charts highlighted that ADA has been range-bound for approximately 45 days. According to their technical framework, a decisive move above $0.304 could unlock price objectives at $0.338 and $0.376.

The Advance-Decline Line demonstrates an upward trajectory, signaling broader market participation improvement. While this hasn’t yet confirmed a full trend reversal, some market observers interpret it as early-stage accumulation behavior.

DeFi Ecosystem Receives $15M Liquidity Injection On the decentralized finance front, Cardano experienced a meaningful liquidity expansion through the introduction of USDCx, a cross-chain variant of the USDC stablecoin.

Blockchain analyst Mintern documented that more than $15 million worth of USDCx entered circulation during its inaugural week. The bridge processed over 6,100 individual transactions representing $1.17 million in organic user activity.

This capital infusion elevated Cardano’s total value locked from $127 million to $142 million. Future development plans encompass enhanced protocol integrations, expanded developer resources, and comprehensive educational initiatives centered on USDCx adoption.

As of March 17, ADA remains trading beneath the $0.305 Supertrend resistance threshold, while derivatives markets continue showing net outflows across shorter timeframes.

TLDR Ping Fai Yuen alleges his estranged spouse Fun Yung Li accessed 2,323 Bitcoin from his Trezor wallet in August 2023 by recording his seed phrase via household surveillance cameras The cryptocurrency held a value near $60 million when allegedly stolen but has since appreciated to approximately $172 million The digital assets were distributed across 71 different blockchain addresses with no transaction activity recorded after December 21, 2023 While dismissing the primary conversion claim, a UK High Court judge permitted the case to advance on alternative legal grounds Justice Cotter determined the husband possesses “a very high probability of success” and advised scheduling an expedited trial Ping Fai Yuen, a British man, alleges that his estranged spouse Fun Yung Li covertly captured the 24-word seed phrase for his Trezor hardware wallet through domestic surveillance equipment. According to his claims, she subsequently utilized this information to authorize the unauthorized transfer of 2,323 Bitcoin in August 2023.

The Bitcoin held an estimated value approaching $60 million during the alleged incident. Based on current market prices hovering around $74,000 per token, the holdings are now worth approximately $172 million.

The disputed cryptocurrency moved through multiple transactions before settling into 71 distinct blockchain addresses. Court filings indicate these addresses have remained dormant with zero recorded movements since December 21, 2023.

According to Yuen’s testimony, his daughter alerted him to his wife’s alleged intentions to appropriate the Bitcoin. Following this warning, he deployed audio surveillance technology throughout their residence. He asserts these recordings document his wife deliberating about the theft and strategizing methods to transfer substantial funds while avoiding scrutiny from financial institutions and law enforcement.

Law enforcement officials arrested Li and confiscated multiple cold storage wallets and timepieces during a residence search. She was subsequently released under bail conditions. Authorities eventually determined no additional action would be pursued unless fresh evidence emerged.

Legal Battle Over Crypto Property Rights This case presents a fundamental legal question: can Bitcoin be classified as property under current English legal frameworks?

Li’s legal representatives petitioned for case dismissal. They contended that Yuen’s primary allegation centered on conversion, a legal doctrine in England historically applicable exclusively to tangible property and incompatible with digital assets such as Bitcoin.

The presiding judge concurred that conversion was inapplicable. Nevertheless, Justice Cotter determined the proceedings could advance to trial based on alternative legal theories that might enable Yuen to reclaim the Bitcoin should his accusations be substantiated.

In an unrelated September 2024 incident, a physical altercation occurred between Ping and Li. Yuen subsequently entered guilty pleas to assault occasioning actual bodily harm plus two counts of common assault.

Yuen has additionally informed the court of his suspicion that the 71 Bitcoin addresses have been subjected to a dusting attack. These attacks involve transmitting minimal cryptocurrency amounts to wallets for tracking purposes and potentially identifying valuable holders for phishing schemes and additional fraudulent activities.

Judge: Evidence Is “Damning” In November 2024, Yuen filed for an asset preservation injunction requesting the court freeze the cryptocurrency, formally recognize his ownership rights, and either restore the Bitcoin or compensate him with equivalent cash value.

Justice Cotter documented that Yuen possesses “a very high probability of success,” citing the audio documentation and the hardware discovered during Li’s residence search.

“The transcripts are damning,” Cotter stated, noting that Li provided no justification for the Bitcoin transfers.

Justice Cotter further advocated for an accelerated trial, characterizing it as “necessary given the security threats to, and volatility of value of, the Bitcoin.”

Ripple's token also surpassed BNB in terms of market cap today.

Alongside the rest of the market, XRP jumped earlier today to over $1.60, a level not seen in just over a month.

Although it was rejected there and now trades at around $1.50, the asset could be primed for more gains ahead, and Ali Martinez outlined the next possible target.

XRP to Aim at $1.85? In the days leading up to today’s surge, Martinez also reported that the Bollinger Bands on XRP’s chart had squeezed as the asset spent most of the previous few weeks trading sideways in a relatively tight range between $1.33 and $1.47. Consequently, the analyst suggested that a bigger move is on its way, without providing any clear indication of the direction.

However, the cross-border token finally broke out of that range yesterday, surging past $1.50. It climbed to over $1.60 earlier this morning, and even though it was stopped there, it’s still above the upper boundary of its previous trading range. Consequently, Ali Martinez noted that the aforementioned big move might take the asset to its next notable target at $1.85.

$XRP is breaking out of this triangle!

Target: $1.85. https://t.co/3dirkMNDwF pic.twitter.com/H2D56F5zyZ

— Ali Charts (@alicharts) March 17, 2026

Interestingly, the impressive price resurgence over the past few days comes even as the spot XRP ETFs continue to underperform. After registering a highly negative 7-day streak, the funds were in the red once again on Monday, with almost $6 million in net outflows.

However, the company behind the token has made some major moves lately, including announcing plans to secure an Australian Financial Services License, as well as a partnership focused on the US and Canadian markets.

You may also like: XRP Ledger Hits All-Time High as Ripple Price Jumps 14% in 48 Hours Zero Net Inflows All Week: Ripple (XRP) ETFs Lose Investor Momentum Is the XRP Rally Losing Steam? Open Interest Drops Sharply Across Exchanges Strongly Bullish CryptoWZRD also weighed in on the token’s recent performance, noting that it closed “strongly bullish,” especially against BTC. The analyst expects “more bullish moves from XRP/BTC,” which will help the cross-border asset in the near future.

Fellow market observer CW outlined a chart showing that XRP has touched the lower line of the ascending channel, which represents its cycle bottom. They added that “an uptrend has now begun” after a Heikin Ashi green candle appeared following the successful retest of the bottom level.

The lower line of the ascending channel is the bottom of $XRP.

And a Heikin Ashi green candle appeared.

After touching the bottom, the trend reversed. An uptrend has now begun. pic.twitter.com/i5H5nDFKZH

— CW (@CW8900) March 17, 2026

Tags:

Key Highlights HYPE surged approximately 10% to reach the $40 price level, establishing itself as the top gainer among the 20 largest cryptocurrencies by market capitalization Open Interest increased to $1.67 billion, marking the highest reading since early February and indicating significant new capital inflows Funding rates shifted into positive territory at 0.008%, demonstrating that long position holders are compensating short sellers The 4-hour RSI indicator stands at 70, approaching overbought levels, while the MACD displays a bullish crossover pattern Tokenized assets accounted for 33% of Hyperliquid’s weekly trading volume, establishing a new platform record Hyperliquid (HYPE) has climbed to $40 following a nearly 10% price increase on Monday. This upward movement enabled HYPE to surpass Cardano’s ADA, securing the position as the tenth-largest cryptocurrency by market capitalization.

Hyperliquid (HYPE) Price The price surge is supported by robust on-chain metrics and derivatives market indicators. According to CryptoQuant analytics, significant whale transactions, buy-side pressure dominance, and stabilizing conditions across both spot and futures markets are evident.

In the derivatives markets, Open Interest (OI) expanded to $1.67 billion on Tuesday. This represents the highest measurement recorded since the beginning of February, with consistent growth observed throughout March.

Source: Coinglass An increase in OI generally indicates that fresh capital is flowing into the market. This additional liquidity could provide support for the current upward price trajectory.

Hyperliquid’s funding rates transitioned to positive territory on Sunday and climbed to 0.008% by Tuesday. This shift from negative to positive funding rates indicates that traders with long positions are compensating those with short positions — a clear indication of robust bullish sentiment.

Chart Analysis Suggests Further Upside Potential Examining the 4-hour timeframe, HYPE successfully breached a daily resistance barrier at $36.51 last Thursday. The token established support around that threshold the next day before climbing roughly 10% through Monday’s trading session.

The 4-hour RSI reading stands at 70, positioned just beneath overbought conditions. Additionally, the MACD indicator has generated a bullish crossover signal, accompanied by expanding green histogram bars that reinforce the positive technical outlook.

Should HYPE maintain its upward momentum, the primary target remains the $50 psychological threshold. Nevertheless, the October 29 peak of $49.88 could serve as resistance due to concentrated sell-order activity in that price zone.

A brief retracement within the overall uptrend remains possible. In such a scenario, the initial support level to monitor would be $36.51, with secondary support at $33.60, which was most recently tested on March 10.

Record-Breaking Tokenized Asset Trading Activity Beyond price movements, tokenized assets represented 33% of Hyperliquid’s total weekly trading volume. This marks an unprecedented all-time high proportion for this asset category on the platform, based on Blockworks data.

Tokenized assets accounted for 33% of last week's volume on Hyperliquid, a new all time high

These assets also make up 21% of open interest on the platform pic.twitter.com/SZIbJa6Sfb

— Blockworks (@Blockworks) March 16, 2026

Tokenized assets also constitute approximately 21% of the total open interest on Hyperliquid. Open interest represents the aggregate value of all active derivative contracts.

The expanding proportion of tokenized assets indicates that an increasing number of traders are maintaining positions in these instruments over extended timeframes.

Tokenized assets represent conventional financial instruments or tangible real-world assets that have been digitized on blockchain networks, enabling them to be exchanged within decentralized trading environments.

As of Tuesday’s trading session, HYPE is valued at $40 with bullish traders eyeing $50 as the subsequent critical resistance level.

ETH markets absorbed $800M in selling for just the past week. Some of the recent selling came from high-profile whales, but ETH still improved its sentiment. 

ETH now stands just below a key resistance level at around $2,300, potentially sparking more expansion to the $2,400 range. The token grew despite the recent selling from whale wallets, absorbing $800M in the past week. 

ETH expanded in the past week, despite absorbing $800M in selling from whales. | Source: CoinGecko. The Ethereum fear and greed index switched to 67 points, signifying greed for the first time since January. ETH open interest also increased to levels not seen since early 2026, breaking above $14B for the first time in months. 

Following the recent general market recovery, ETH showed that the pessimism was unwarranted, and the token quickly returned to higher demand. 

ETH whales are repositioning for a better average price The recent whale selling does not necessarily mean an abandonment of ETH. During past bull cycles, whales rebalanced their portfolios to achieve a lower average price. ETH whales are showing they may be here to stay, using the token as a source of staking passive income. 

As a sign of long-term interest, the Ethereum validator queue still has over 3M ETH waiting, with an average waiting time of 52 days to start as a validator node. There are also no signs of whales exiting the Beacon chain contract. Over 31% of ETH is staked, for a total of 37.7M. 

As the Ethereum ecosystem matured, panic-selling is now rarer, as well as large cascading liquidations. Some ETH-based loans were liquidated or caused forced selling, but overall, ETH retains significant long-term confidence. 

Long-term ETH holders may be facing some price pressure, as only 38% of the supply is held with unrealized gains. However, the recent market conditions show Ethereum can absorb the selling, and some whales intend to hold. 

The amount of ETH held in strategic reserves is up to 7.27M ETH, breaking above 6% of the supply. Bitmine continued to buy more ETH in the past month, holding 4.5M tokens and now up to 75% of its target treasury. 

ETH rally boosts DeFi activity ETH at a higher price range remains beneficial for DeFi activity. Currently, a big liquidation cluster stands around $1,891 per ETH, mostly affecting Compound loans. 

With the current breakout above $2,300, there is no danger of a dip to a lower range. Value held in the Ethereum ecosystem expanded to $59B from recent local lows, while DeFi in general locked in $99B. 

ETH remains the backbone of DeFi lending, while posting over 2M daily transactions, near an all-time peak. The long-term prospects of the network also led to record-low exchange reserves of just 15M ETH. Whales are also moving in to buy ETH at lower prices and withdraw from exchanges.

TLDR The scheduled March 30 launch date for OpenSea’s SEA token has been postponed indefinitely Challenging cryptocurrency market conditions prompted CEO Devin Finzer to delay the token debut The platform’s “Waves” incentive program is being discontinued, with no additional waves planned Participants in Waves 3 through 6 can choose platform fee refunds but must forfeit their accumulated Treasure rewards A 60-day period of zero token trading fees begins March 31 as part of the platform’s relaunch strategy The NFT marketplace OpenSea has indefinitely postponed the debut of its SEA token, walking back from the previously announced March 30 launch date. Co-founder and CEO Devin Finzer revealed the decision via X, emphasizing that current conditions don’t favor the launch.

an update on $SEA.

the team has been building at full speed, and the foundation had planned to kick off the first steps as part of our march 30th event. but @openseafdn is pushing back the timeline.

a delay is a delay. i’m not going to dress it up, and i know how it lands.

the…

— dfinzer.eth | opensea (@dfinzer) March 16, 2026

“The reality is that market conditions are challenging across crypto right now, and SEA only launches once,” Finzer explained. Rather than rushing to meet the original timeline, the foundation decided to wait until all elements are properly aligned.

OpenSea first unveiled its SEA token initiative in October 2025, positioning it as central to the platform’s transformation from an NFT-focused marketplace into an all-encompassing “trade everything” application. The roadmap included multi-chain expansion and integration of perpetual futures trading capabilities.

The token’s utility was designed around several key features: reduced trading costs for holders, enhanced rewards for creators, governance participation through community voting, and collection-specific staking mechanisms.

Ahead of the anticipated launch, OpenSea implemented an incentive initiative dubbed “Waves.” This program allowed participants to accumulate “Treasure” points based on their platform activity, with these points intended to determine SEA token distributions during the token generation event.

Finzer has now confirmed that the ongoing wave marks the program’s conclusion. The platform will not introduce additional waves moving forward.

Fee Refund Option Extended to Recent Wave Users Participants who engaged in trading activity during the third, fourth, fifth, and sixth waves now have the option to reclaim platform fees paid during those periods. The catch: accepting these refunds requires forfeiting all Treasure points earned in those waves.

Those who decline refunds and retain their Treasures will have those points credited toward their eventual token allocation once a new launch date is established.

Questions have emerged within the community regarding why earlier participants from the first two waves are excluded from the refund opportunity. OpenSea has yet to provide clarification on this matter.

According to Dune Analytics, OpenSea experienced a trading volume spike reaching $3.3 billion in October—a four-year peak that coincided with the first wave’s September 15 to October 15 timeframe. However, volume subsequently declined to $705 million during November’s second wave.

Two-Month Zero-Fee Period Launches March 31 In an effort to drive adoption of its redesigned platform, OpenSea will eliminate token trading fees entirely for a 60-day window starting March 31.

Finzer emphasized the team’s long-term vision and “huge ambitions,” highlighting a commitment to simplifying non-custodial cryptocurrency usage on mobile devices. The foundation won’t announce a revised SEA launch timeline until it can provide a comprehensive and well-planned schedule.

Currently, no replacement date has been established for the SEA token launch.

Trustpilot Group PLC (LSE:TRST) reported full-year profits and cash generation ahead of expectations, as the online consumer reviews platform positioned itself as a key beneficiary of the shift towards artificial intelligence-driven search.

Revenue for 2025 swelled 24% to $261.1 million and underlying earnings (EBITDA) surged 69% to $40.7 million, as the margin widened from 11.4% to 15.6%.

Operating cash flow more than doubled to $59.2 million.

The company's AI credentials were front and centre in the results statement, with click-throughs from AI search engines jumping nearly fifteenfold year-on-year, and Trustpilot ranked as the fifth most cited domain globally on ChatGPT in January 2026 – meaning the chatbot is actively referencing its reviews when answering user queries.

Chief executive Adrian Blair said authentic human feedback had "never been more critical" as AI reshapes how consumers search and make decisions.

The board announced a new £22.5 million share buyback, adding to $71.6 million completed during the past year.

For 2026, Trustpilot guided for high-teens revenue growth and a further 2-to-3 percentage point improvement in EBITDA margin, with longer-term targets of 25% margins by 2028 and 30% by 2030.

MTN Group Limited (MTNOY) Q4 2025 Earnings Call March 16, 2026 9:30 AM EDT

Company Participants

Thato Motlanthe
Ralph Mupita - Group President, CEO & Executive Director
Tsholofelo B. Molefe - Group CFO & Executive Director
Frederic Schepens - Chief Executive Officer of GlobalConnect

Conference Call Participants

Jonathan Bradley - Absa Bank Limited, Research Division
Louise Pillay - Investec Bank plc, Research Division
Myuran Rajaratnam - Metal Industries Benefit Funds Administrators
Nadim Mohamed - SBG Securities (Proprietary) Limited, Research Division
Admire Mavolwane - Terra Partners Asset Management Limited

Presentation

Thato Motlanthe

Good afternoon to everybody, and welcome to the Innovation Center and for those online to our 2025 full year financial results. My name is Thato Motlanthe, and I look after the Group Investor Relations. Welcome to all of those who've come into the room in the Innovation Center and all those who are on our platforms, YouTube, LinkedIn and particularly our MTN colleagues across our markets who make all of this possible.

Before we get into the order of business for today, let's just run through the usual housekeeping. First of all, you should be seeing our disclaimer and safe harbor. That covers really the presentation for today. And for those physically in the room, please note that we do have the emergency exits. Just to remind you, we're all about health and safety. There's one at the top left when you -- in terms of how I'm facing and to my right as well.

For connectivity, you should be seeing the WiFi details. I'll just give you a second to connect if you haven't already. And then on the social networks, if you plan to share some of the updates online, please do use our hashtag, which is MTN Annuals '25. You can tag our corporate accounts @MTNGroup on X and @MTN on LinkedIn. And there's also a QR code for the full results

Materion (MTRN) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock suggests that there could be more strength down the road.

Q4: 2026-03-16 Earnings SummaryEPS of -$0.46 misses by $0.36

 |

Revenue of

$74.94M

(-37.98% Y/Y)

beats by $4.58M

DocGo Inc. (DCGO) Q4 2025 Earnings Call March 16, 2026 5:00 PM EDT

Company Participants

Mike Cole - Vice President of Investor Relations
Lee Bienstock - CEO & Director
Norman Rosenberg - Treasurer & CFO

Conference Call Participants

Pito Chickering - Deutsche Bank AG, Research Division
Ryan MacDonald - Needham & Company, LLC, Research Division
David Larsen - BTIG, LLC, Research Division
Sarah James - Cantor Fitzgerald & Co., Research Division
David Grossman - Stifel, Nicolaus & Company, Incorporated, Research Division

Presentation

Operator

Good afternoon, ladies and gentlemen, and welcome to the DocGo Fourth Quarter and Full Year 2025 Earnings Call. [Operator Instructions] This call is being recorded on March 16, 2026. I would now like to turn the conference over to Mr. Mike Cole, Vice President, Investor Relations. Please go ahead.

Mike Cole
Vice President of Investor Relations

Thank you, operator. Before turning the call over to management, I would like to make the following remarks concerning forward-looking statements. All statements made in this conference call other than statements of historical fact, are forward-looking statements. The words may, will, plan, potential, could, goal, outlook, design, anticipate, aim, believe, estimate, expect, intend, guidance, confidence, target, project and other similar expressions may be used to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance, and we cannot assure you that we will achieve or realize our plans, intentions, outcomes, results or expectations.

Forward-looking statements are inherently subject to substantial risks, uncertainties and assumptions, many of which are beyond our control, and which may cause our actual results or outcomes or the timing of results or outcomes to differ materially from those contained in our forward-looking statements. These risks, uncertainties and assumptions include, but are not limited to, those discussed in Risk Factors and elsewhere in DocGo's annual report on Form 10-K, quarterly reports on Form 10-Q, our earnings release for

Representation of bitcoin cryptocurrency in this illustration created on September 10, 2025. REUTERS/Dado Ruvic/File Photo Purchase Licensing Rights, opens new tab

March 17 (Reuters) - Citigroup cut its 12-month forecast for bitcoin and ethereum, citing slow U.S. legislative progress that narrows the window for regulatory catalysts expected to ​boost ETF-driven demand and broader institutional adoption.

Progress on U.S. crypto market-structure legislation ‌has stalled in the Senate, with the Clarity Act's chances of passage declining over disagreements on stablecoin rules and a shrinking window for approval in 2026.

The Week in Breakingviews newsletter offers insights and ideas from Reuters' global financial commentary team. Sign up here.

The Wall Street brokerage ​lowered its 12-month bitcoin price forecast to $112,000 from $143,000 and its ethereum ​estimate to $3,175 from $4,304.

"Regulatory catalysts will drive further adoption and flows but ⁠the window of opportunity for U.S. legislation this year is narrowing," Citi ​strategist Alex Saunders said in a note on Monday.

Citi said that under a ​recessionary macro backdrop, bitcoin could drop to $58,000 and ether to $1,198, while its bull case, driven by stronger end-investor demand, puts bitcoin as high as $165,000 and ether at $4,488.

Bitcoin last traded ​around $74,298.11 and ether around $2345.51, as of 0750 GMT on Tuesday.

"ETH will be ​especially sensitive to user activity metrics, which have been weak recently, but stablecoin and tokenization ‌trends ⁠may increase interest and usage," Citi added.

Chances for passing a crypto bill would shrink further if Democrats gain seats in the U.S. Congress in November mid-term elections, since Democratic lawmakers are more divided on overhauling federal rules to ​accommodate cryptocurrencies.

To pass, the ​bill needs support ⁠from at least seven Senate Democrats. Some Democrats are pushing for language that would bar elected officials from profiting ​from crypto ventures, an issue that has gained traction ​amid scrutiny ⁠of the Trump family's World Liberty Financial project. Analysts say that could reduce the likelihood that U.S. President Donald Trump would sign the bill into law.

"Bitcoin is likely ⁠to ​range-trade anticipating legislative news flow with (about) $70,000 an important ​level representing the pre-U.S. election price," Citi said.

Other lawmakers have called for the bill to include ​tighter anti-money laundering rules.

Reporting by Joel Jose in Bengaluru; Editing by Sherry Jacob-Phillips

Our Standards: The Thomson Reuters Trust Principles., opens new tab

The Vanguard Information Technology ETF (VGT +1.47%) was established in 2004. It has since produced a compound annual return of 13.7%, outperforming the S&P 500 (^GSPC +1.01%) which gained 10.6% annually over the same period. Although the 3.1 percentage-point difference doesn't sound like much at face value, it made a remarkable impact in dollar terms thanks to the magic of compounding. But more on that later.

This Vanguard exchange-traded fund (ETF) exclusively invests in stocks from the information technology sector, which hosts artificial intelligence (AI) giants like Nvidia, Microsoft, and Palantir Technologies. These stocks have produced incredible returns over the last few years, and with trillions of dollars in AI spending in the pipeline, they are likely to continue leading the broader market higher.

Here's why I predict the Vanguard ETF will beat the S&P 500 yet again in 2026.

Image source: Getty Images.

Hundreds of technology titans in one ETF The Vanguard Information Technology ETF holds 320 stocks from 12 subsegments of the information technology sector, but a whopping 34.4% of its assets are parked in the semiconductor segment alone. That's because the fund arranges its holdings by their market capitalization, meaning the largest companies have a greater influence over its performance than the smallest.

Semiconductor companies Nvidia, Broadcom, Micron Technology, and Advanced Micro Devices are worth a combined $6.8 trillion. Hence, they are among the largest holdings in the ETF.

By 2030, Nvidia CEO Jensen Huang believes data center operators could be spending up to $4 trillion per year on infrastructure to meet demand from AI developers, as every new model they bring to market requires more computing capacity than the last. In other words, those semiconductor companies could grow even larger in the coming years, which would drive further upside in the Vanguard ETF.

But this fund also owns some of the biggest buyers of those AI data center chips and components, like Microsoft and Oracle. They are building infrastructure and renting the computing capacity to AI developers through the cloud for a fee, which has become a very lucrative business model.

The six stocks I've just named have delivered a median return of 353% since the AI boom started gathering momentum at the start of 2023, and each of them has crushed the S&P 500 over that period (except Microsoft, which is lagging).

NVDA data by YCharts.

But they aren't the only powerhouse AI stocks in the Vanguard ETF. It also holds:

Palantir Technologies, which offers a suite of software platforms to help businesses and government organizations extract maximum value from their data. Its stock has soared by a staggering 2,200% since the start of 2023. CrowdStrike, which developed one of the cybersecurity industry's only all-in-one platforms for enterprises. It uses AI to automate security workflows, but it's also helping businesses deploy AI software and AI agents safely. Its stock has more than quadrupled since the start of 2023. Palo Alto Networks, which is another cybersecurity company. It has one of the most expansive AI-powered product portfolios in the entire industry, but it's also thinking ahead by designing solutions to protect enterprises from the future threat posed by quantum computing. Its stock has more than doubled since the start of 2023. The Vanguard ETF can beat the S&P 500 again in 2026 Circling back to the returns I highlighted at the top, here's how much an investor would have earned had they parked $50,000 in the Vanguard Information Technology ETF in 2004 instead of in the S&P 500:

Starting Balance In 2004

Compound Annual Return

Balance In 2026

$50,000

13.7%

$842,752

$50,000

10.6%

$458,757

Calculations by author.

Today's Change

(

1.47

%) $

10.51

Current Price

$

724.95

Therefore, although the Vanguard ETF only outperformed the S&P 500 by an average of 3.1 percentage points since 2004, the compounding effect resulted in substantially higher returns in dollar terms.

I think the ETF is likely to beat the S&P 500 yet again in 2026, mostly because of the incredible momentum in the AI space. Nvidia will start shipping commercial quantities of its new Vera Rubin AI chips for the data center in the second half, and demand is expected to exceed supply by a wide margin. Plus, cloud providers like Microsoft and Oracle each have order backlogs worth hundreds of billions of dollars from AI customers who are waiting for more infrastructure to come online.

If those companies continue to produce strong financial results, then their stock prices should trend higher from here, which will fuel another strong year of gains for the Vanguard ETF.

Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, CrowdStrike, Micron Technology, Microsoft, Nvidia, Oracle, and Palantir Technologies. The Motley Fool recommends Broadcom and Palo Alto Networks. The Motley Fool has a disclosure policy.

, /PRNewswire/ -- HUYA Inc. ("Huya" or the "Company") (NYSE: HUYA), a leading game-related entertainment and services provider, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025, and a special cash dividend for the year 2026.

Fourth Quarter 2025 Highlights

Total net revenues increased by 16.2% to RMB1,738.5 million (US$248.6 million) for the fourth quarter of 2025, from RMB1,495.8 million for the same period of 2024. Game-related services, advertising and other revenues increased by 59.4% to RMB592.5 million (US$84.7 million) for the fourth quarter of 2025, from RMB371.6 million for the same period of 2024. Net loss attributable to HUYA Inc. was RMB117.6 million (US$16.8 million) for the fourth quarter of 2025, compared with RMB172.2 million for the same period of 2024. Non-GAAP net loss attributable to HUYA Inc.[1] was RMB8.4 million (US$1.2 million) for the fourth quarter of 2025, compared with a non-GAAP net income attributable to HUYA Inc. of RMB1.2 million for the same period of 2024. Average MAUs[2] for the fourth quarter of 2025 was 160.0 million. Fiscal Year 2025 Highlights

Total net revenues increased by 7.0% to RMB6,502.4 million (US$929.8 million) for fiscal year 2025, from RMB6,079.1 million for 2024. Game-related services, advertising and other revenues increased by 43.1% to RMB1,908.4 million (US$272.9 million) for fiscal year 2025, from RMB1,333.9 million for 2024. Net loss attributable to HUYA Inc. was RMB112.6 million (US$16.1 million) for fiscal year 2025, compared with RMB48.0 million for 2024. Non-GAAP net income attributable to HUYA Inc.[1] was RMB99.5 million (US$14.2 million) for fiscal year 2025, compared with RMB268.8 million for 2024. Mr. Junhong Huang, Acting Co-Chief Executive Officer and Senior Vice President of Huya, commented, "In 2025, we made meaningful progress in our evolution into a comprehensive game-related services provider. Our total net revenues for 2025 rebounded to RMB6.5 billion, up 7.0% year-over-year. Notably, our fourth quarter total net revenues reached RMB1.74 billion, with year-over-year growth accelerating to 16.2%. This performance was primarily driven by our business diversification efforts, as game-related services, advertising, and other revenues surged 59.4% year-over-year and accounted for over 30% of total net revenues, which is now the second quarter since we first hit this milestone."

"Building on this momentum, our expansion into game publishing achieved a key breakthrough with the launch of Goose Goose Duck mobile in the Chinese mainland in January 2026. Since its debut, the title has demonstrated exceptional market appeal, ranking No. 1 on the local Apple App Store free games chart for most of the past two months. More importantly, this success powerfully validates our content-driven publishing strategy and lays the groundwork for us to further deepen our presence across the gaming ecosystem," Mr. Huang concluded.

Mr. Raymond Peng Lei, Acting Co-Chief Executive Officer and Chief Financial Officer of Huya, added, "Our fourth quarter results included a one-off accounting provision, which had a significant impact on our reported operating results and led to an operating loss for the quarter. Excluding the impact of this item, this quarter's results reflected continued improvement in our core operating performance."

Fourth Quarter 2025 Financial Results

Total net revenues increased by 16.2% to RMB1,738.5 million (US$248.6 million) for the fourth quarter of 2025, from RMB1,495.8 million for the same period of 2024.

Live streaming revenues increased by 1.9% to RMB1,146.0 million (US$163.9 million) for the fourth quarter of 2025, from RMB1,124.2 million for the same period of 2024, primarily due to higher average spending per paying user for live streaming services.

Game-related services, advertising and other revenues increased by 59.4% to RMB592.5 million (US$84.7 million) for the fourth quarter of 2025, from RMB371.6 million for the same period of 2024. The increase was primarily driven by higher revenues from game-related services and advertising, which were mainly attributable to the Company's deepened cooperation with game companies.

Cost of revenues increased by 12.7% to RMB1,493.8 million (US$213.6 million) for the fourth quarter of 2025, from RMB1,325.4 million for the same period of 2024, primarily due to increased revenue sharing fees and content costs, as well as increased costs of in-game items, partially offset by decreased bandwidth and server custody fees. Revenue sharing fees and content costs, a key component of cost of revenues, increased by 10.4% year-over-year to RMB1,277.2 million (US$182.6 million) for the fourth quarter of 2025, primarily due to increased revenues.

Gross profit increased by 43.6% to RMB244.7 million (US$35.0 million) for the fourth quarter of 2025, from RMB170.5 million for the same period of 2024. Gross margin was 14.1% for the fourth quarter of 2025, compared with 11.4% for the same period of 2024.

Research and development expenses decreased by 0.2% to RMB123.1 million (US$17.6 million) for the fourth quarter of 2025, from RMB123.3 million for the same period of 2024.

Sales and marketing expenses increased by 24.3% to RMB78.1 million (US$11.2 million) for the fourth quarter of 2025, from RMB62.8 million for the same period of 2024, primarily due to increased marketing and promotional efforts, including pre-launch preparations for Goose Goose Duck mobile, a co-published title that was subsequently launched in January 2026.

General and administrative expenses increased by 55.4% to RMB126.0 million (US$18.0 million) for the fourth quarter of 2025, from RMB81.1 million for the same period of 2024, primarily due to a RMB66.0 million (US$9.4 million) provision related to a receivable arising from a 2021 arrangement with a broadcaster, which was deemed to have a heightened risk of non-recoverability.

Other income was RMB17.5 million (US$2.5 million) for the fourth quarter of 2025, compared with RMB4.0 million for the same period of 2024, primarily due to increased government subsidies.

Operating loss was RMB64.9 million (US$9.3 million) for the fourth quarter of 2025, compared with RMB92.7 million for the same period of 2024.

Non-GAAP operating loss was RMB36.1 million (US$5.2 million) for the fourth quarter of 2025, compared with RMB69.3 million for the same period of 2024.

Interest income was RMB32.1 million (US$4.6 million) for the fourth quarter of 2025, compared with RMB75.2 million for the same period of 2024, primarily due to a lower time deposit balance, which was mainly attributable to the special cash dividends paid.

Impairment loss of investments was RMB81.5 million (US$11.6 million) for the fourth quarter of 2025, compared with RMB151.1 million for the same period of 2024, primarily due to the recognition of impairment charges on the Company's investments, attributable to the weak financial performance of certain investees.

Net loss attributable to HUYA Inc. was RMB117.6 million (US$16.8 million) for the fourth quarter of 2025, compared with RMB172.2 million for the same period of 2024.

Non-GAAP net loss attributable to HUYA Inc. was RMB8.4 million (US$1.2 million) for the fourth quarter of 2025, compared with a non-GAAP net income attributable to HUYA Inc. of RMB1.2 million for the same period of 2024.

Basic and diluted net loss per American depositary share ("ADS") were each RMB0.51 (US$0.07) for the fourth quarter of 2025. Basic and diluted net loss per ADS were each RMB0.75 for the fourth quarter of 2024. Each ADS represents one Class A ordinary share of the Company.

Non-GAAP basic and diluted net loss per ADS were each RMB0.04 (US$0.01) for the fourth quarter of 2025. Non-GAAP basic and diluted net income per ADS were each RMB0.01 for the fourth quarter of 2024.

As of December 31, 2025, the Company had cash and cash equivalents, short-term deposits and long-term deposits of RMB3,818.4 million (US$546.0 million), compared with RMB3,828.2 million as of September 30, 2025.

Fiscal Year 2025 Financial Results

Total net revenues increased by 7.0% to RMB6,502.4 million (US$929.8 million) for fiscal year 2025, from RMB6,079.1 million for 2024.

Live streaming revenues decreased by 3.2% to RMB4,594.0 million (US$656.9 million) for fiscal year 2025, from RMB4,745.2 million for 2024, primarily due to the continued impact of the macroeconomic and industry environment, partially offset by improved monetization efficiency, as reflected in higher average spending per paying user for live streaming services in the second half of 2025.

Game-related services, advertising and other revenues increased by 43.1% to RMB1,908.4 million (US$272.9 million) for fiscal year 2025, from RMB1,333.9 million for 2024. The increase was primarily driven by higher revenues from game-related services and advertising, which were mainly attributable to the Company's deepened cooperation with game companies.

Cost of revenues increased by 6.8% to RMB5,630.3 million (US$805.1 million) for fiscal year 2025, from RMB5,269.7 million for 2024, primarily due to increased revenue sharing fees and content costs, as well as increased costs of in-game items, partially offset by decreased bandwidth and server custody fees. Revenue sharing fees and content costs, a key component of cost of revenues, increased by 5.5% year-over-year to RMB4,872.3 million (US$696.7 million) for fiscal year 2025, primarily due to increased revenues.

Gross profit increased by 7.7% to RMB872.1 million (US$124.7 million) for fiscal year 2025, from RMB809.5 million for 2024. Gross margin was 13.4% for fiscal year 2025, compared with 13.3% for 2024.

Research and development expenses decreased by 3.1% to RMB496.7 million (US$71.0 million) for fiscal year 2025, from RMB512.6 million for 2024, primarily due to decreased staff costs as a result of enhanced efficiency.

Sales and marketing expenses decreased by 2.7% to RMB266.6 million (US$38.1 million) for fiscal year 2025, from RMB274.0 million for 2024, primarily due to decreased channel promotion fees.

General and administrative expenses increased by 21.2% to RMB308.9 million (US$44.2 million) for fiscal year 2025, from RMB254.8 million for 2024, primarily due to a RMB66.0 million (US$9.4 million) provision related to a receivable arising from a 2021 arrangement with a broadcaster, which was deemed to have a heightened risk of non-recoverability.

Other income was RMB37.5 million (US$5.4 million) for fiscal year 2025, compared with RMB42.5 million for 2024, primarily due to lower government subsidies.

Operating loss was RMB162.5 million (US$23.2 million) for fiscal year 2025, compared with RMB189.6 million for 2024.

Non-GAAP operating loss was RMB65.0 million (US$9.3 million) for fiscal year 2025, compared with RMB101.3 million for 2024.

Interest income was RMB190.8 million (US$27.3 million) for fiscal year 2025, compared with RMB391.4 million for 2024, primarily due to a lower time deposit balance, which was mainly attributable to the special cash dividends paid.

Impairment loss of investments was RMB120.2 million (US$17.2 million) for fiscal year 2025, compared with RMB232.5 million for 2024, primarily due to the recognition of impairment charges on the Company's investments, attributable to the weak financial performance of certain investees.

Net loss attributable to HUYA Inc. was RMB112.6 million (US$16.1 million) for fiscal year 2025, compared with RMB48.0 million for 2024.

Non-GAAP net income attributable to HUYA Inc. was RMB99.5 million (US$14.2 million) for fiscal year 2025, compared with RMB268.8 million for 2024.

Basic and diluted net loss per ADS were each RMB0.49 (US$0.07) for fiscal year 2025. Basic and diluted net loss per ADS were each RMB0.21 for 2024.

Non-GAAP basic and diluted net income per ADS were each RMB0.43 (US$0.06) for fiscal year 2025. Non-GAAP basic and diluted net income per ADS were RMB1.16 and RMB1.15, respectively, for 2024.

Net cash used in operating activities was RMB176.2 million (US$25.2 million) for fiscal year 2025, compared with net cash provided by operating activities of RMB94.3 million for 2024, primarily due to decreased interest income and increased amounts due from related parties.

Share Repurchase Program

Pursuant to the Company's up-to-US$100 million share repurchase program authorized in August 2023, which has an extended expiration date of March 31, 2026, the Company had repurchased 22.9 million ADSs as of December 31, 2025, with an aggregate consideration of US$75.5 million.

2026 Cash Dividend

To implement its 2025-2027 dividend plan adopted in March 2025, the board of directors of the Company has approved a special cash dividend for the year 2026 (the "2026 Cash Dividend"). The 2026 Cash Dividend will be paid to holders of ordinary shares and holders of ADSs of record as of the close of business on June 17, 2026, in U.S. dollars, in an amount of US$0.135 per ordinary share or US$0.135 per ADS. The total amount of cash to be distributed for the 2026 Cash Dividend is expected to be approximately US$31 million, which will be funded by surplus cash on the Company's balance sheet. The payment date for holders of ordinary shares and holders of ADSs is expected to be on or around June 30, 2026. The dividend to be paid to the Company's ADS holders through the depositary bank will be subject to the terms of the deposit agreement.

Earnings Webinar

The Company's management will host a Tencent Meeting Webinar at 6:00 a.m. U.S. Eastern Time on March 17, 2026 (6:00 p.m. Beijing/Hong Kong time on March 17, 2026), to review and discuss the Company's business and financial performance.

For participants who wish to join the webinar, please complete the online registration in advance using the links provided below. Upon registration, participants will receive an email with webinar access information, including meeting ID, meeting link, dial-in numbers, and a unique attendee ID to join the webinar.

Participant Online Registration:

A live webcast of the webinar will be accessible at https://ir.huya.com, and a replay of the webcast will be available following the session.

[1] "Non-GAAP net (loss) income attributable to HUYA Inc." is defined as net (loss) income attributable to HUYA Inc. excluding share-based compensation expenses, gain arising from disposal of an equity investment, net of income taxes, impairment loss of investments, and amortization of intangible assets from business acquisitions, net of income taxes, to the extent applicable. For more information, please refer to the section titled "Use of Non-GAAP Financial Measures" and the table captioned "HUYA Inc. Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this press release.

[2] Refers to the average total monthly active users who accessed the Company's domestic and overseas platforms and services (primarily the domestic Huya Live platform, its global mobile application service platform, its overseas game live streaming platform, and related services), inclusive of users across all devices (mobile, PC and web). Average MAUs for any period is calculated by dividing (i) the sum of total active users for each month during such relevant period, by (ii) the number of months during such relevant period. The Company shifted to total MAU reporting starting from the second quarter of 2025 to provide a more comprehensive view of user activity, in line with its business expansion, cross-platform strategy, and overseas initiatives.

[3] For the purpose of this announcement only, Chinese Mainland excludes the Hong Kong Special Administrative Region, the Macao Special Administrative Region of the People's Republic of China, and Taiwan.

About HUYA Inc.

HUYA Inc. is a leading game-related entertainment and services provider. Huya delivers dynamic live streaming and video content and a rich array of services spanning games, e-sports, and other interactive entertainment genres to a large, highly engaged community of game enthusiasts. Huya has cultivated a robust entertainment ecosystem powered by AI and other advanced technologies, serving users and partners across the gaming universe, including game companies, e-sports tournament organizers, broadcasters and talent agencies. Leveraging this strong foundation, Huya has also expanded into innovative game-related services, such as game distribution, in-game item sales, advertising and more. Huya continues to extend its footprint in China and abroad, meeting the evolving needs of gamers, content creators, and industry partners worldwide.

For more information, please visit: https://ir.huya.com.

Use of Non-GAAP Financial Measures

The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that the consolidated statement of changes in shareholders' equity, consolidated statements of cash flows, and the detailed notes have not been presented. Huya uses non-GAAP gross profit, non-GAAP operating (loss) income, non-GAAP net (loss) income attributable to HUYA Inc., non-GAAP net (loss) income attributable to ordinary shareholders, non-GAAP basic and diluted net (loss) income per ordinary share, and non-GAAP basic and diluted net (loss) income per ADS, which are non-GAAP financial measures. Non-GAAP gross profit is gross profit excluding share-based compensation expenses allocated in cost of revenues. Non-GAAP operating (loss) income is operating loss excluding share-based compensation expenses and amortization of intangible assets from business acquisitions. Non-GAAP net (loss) income attributable to HUYA Inc. is net (loss) income attributable to HUYA Inc. excluding share-based compensation expenses, gain arising from disposal of an equity investment, net of income taxes, impairment loss of investments, and amortization of intangible assets from business acquisitions, net of income taxes, to the extent applicable. Non-GAAP net (loss) income attributable to ordinary shareholders is net (loss) income attributable to ordinary shareholders excluding share-based compensation expenses, gain arising from disposal of an equity investment, net of income taxes, impairment loss of investments, and amortization of intangible assets from business acquisitions, net of income taxes, to the extent applicable. Non-GAAP basic and diluted net (loss) income per ordinary share and per ADS is non-GAAP net (loss) income attributable to ordinary shareholders divided by the weighted average number of ordinary shares and ADS used in the calculation of non-GAAP basic and diluted net (loss) income per ordinary share and per ADS. The Company believes that separate analysis and exclusion of the impact of (i) share-based compensation expenses, (ii) gain arising from disposal of an equity investment, net of income taxes, (iii) impairment loss of investments, and (iv) amortization of intangible assets from business acquisitions (net of income taxes), add clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measures represent useful supplemental information for investors and analysts to assess its operating performance without the effect of (i) share-based compensation expenses, and (ii) amortization of intangible assets from business acquisitions (net of income taxes), which have been and will continue to be significant recurring expenses in its business, and (iii) gain arising from disposal of an equity investment, net of income taxes, and (iv) impairment loss of investments. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net (loss) income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider a non-GAAP financial measure in isolation from or as an alternative to the financial measures prepared in accordance with U.S. GAAP.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "HUYA Inc. Unaudited Reconciliations of GAAP and Non-GAAP Results" at the end of this announcement.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to U.S. dollars are made at a rate of RMB6.9931 to US$1.00, the noon buying rate in effect on December 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollar amounts referred to in this announcement could have been or could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this announcement, as well as Huya's strategic and operational plans, contain forward-looking statements. Huya may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Huya's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Huya's goals and strategies; Huya's future business development, results of operations and financial condition; the expected growth of the live streaming market and game market; the expectation regarding the rate at which to gain active users, especially paying users; Huya's ability to monetize the user base; Huya's efforts in complying with applicable data privacy and security regulations; fluctuations in general economic and business conditions in China; the economy in China and elsewhere generally; any regulatory developments in laws, regulations, rules, policies or guidelines applicable to Huya; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Huya's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Huya does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

HUYA Inc.
Investor Relations
Tel: +86-20-2290-7829
E-mail: [email protected]

Piacente Financial Communications
Jenny Cai
Tel: +86-10-6508-0677
E-mail: [email protected]

In the United States:

Piacente Financial Communications 
Brandi Piacente
Tel: +1-212-481-2050
E-mail: [email protected]

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, except share, ADS, per share data and per ADS data)

As of December 31,

As of December 31,

2024

2025

2025

RMB

RMB

US$

Assets

Current assets

Cash and cash equivalents

1,188,911

692,663

99,049

Restricted cash

17,031

12,031

1,720

Short-term deposits

4,075,048

3,125,760

446,978

Accounts receivable, net

76,044

238,569

34,115

Prepaid assets and amounts due from related
     parties, net

207,565

290,747

41,576

Prepayments and other current assets, net

523,674

547,078

78,232

Total current assets

6,088,273

4,906,848

701,670

Non-current assets

Long-term deposits

1,470,000

-

-

Investments

440,790

296,165

42,351

Goodwill

463,796

453,498

64,849

Property and equipment, net

484,008

604,368

86,423

Intangible assets, net

153,190

127,633

18,251

Right-of-use assets, net

339,492

304,017

43,474

Prepayments and other non-current assets

128,262

8,843

1,265

Total non-current assets

3,479,538

1,794,524

256,613

Total assets

9,567,811

6,701,372

958,283

Liabilities and shareholders' equity

Current liabilities

Accounts payable

66,613

237,903

34,020

Advances from customers and deferred revenue

265,628

228,167

32,627

Income taxes payable

54,594

61,479

8,791

Accrued liabilities and other current liabilities

1,360,949

1,032,437

147,637

Amounts due to related parties

161,529

150,166

21,473

Lease liabilities due within one year

28,581

18,982

2,714

Total current liabilities

1,937,894

1,729,134

247,262

Non-current liabilities

Lease liabilities

20,047

1,766

253

Deferred tax liabilities

23,405

18,932

2,707

Deferred revenue

35,786

31,824

4,551

Total non-current liabilities

79,238

52,522

7,511

Total liabilities

2,017,132

1,781,656

254,773

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

(All amounts in thousands, except share, ADS, per share data and per ADS data)

As of December 31,

As of December 31,

2024

2025

2025

RMB

RMB

US$

Shareholders' equity

Class A ordinary shares (US$0.0001 par value;
     750,000,000 shares authorized as of December
     31, 2024 and December 31, 2025, respectively;
     74,845,398 and 73,146,779 shares issued and
     outstanding as of December 31, 2024 and 
     December 31, 2025, respectively)

52

54

8

Class B ordinary shares (US$0.0001 par value;
     200,000,000 shares authorized as of December
     31, 2024 and December 31, 2025, respectively;
     150,386,517 and 150,386,517 shares issued and
     outstanding as of December 31, 2024 and
     December 31, 2025, respectively)

98

98

14

Treasury shares

(108,101)

(128,056)

(18,312)

Additional paid-in capital

8,866,492

6,466,101

924,640

Statutory reserves

122,429

122,429

17,507

Accumulated deficit

(2,100,291)

(2,219,365)

(317,365)

Accumulated other comprehensive income

770,000

678,455

97,018

Total shareholders' equity

7,550,679

4,919,716

703,510

Total liabilities and shareholders' equity

9,567,811

6,701,372

958,283

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(All amounts in thousands, except share, ADS, per share data and per ADS data)

Three Months Ended

Twelve Months Ended

December 31,

2024

September 30,

2025

December 31,

2025

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2025

RMB

RMB

RMB

US$

RMB

RMB

US$

Net revenues

Live streaming

1,124,188

1,156,681

1,145,950

163,869

4,745,195

4,594,014

656,935

Game-related services, advertising and others

371,639

531,570

592,525

84,730

1,333,920

1,908,386

272,896

Total net revenues

1,495,827

1,688,251

1,738,475

248,599

6,079,115

6,502,400

929,831

Cost of revenues(1)

(1,325,364)

(1,461,627)

(1,493,767)

(213,606)

(5,269,661)

(5,630,267)

(805,117)

Gross profit

170,463

226,624

244,708

34,993

809,454

872,133

124,714

Operating expenses(1)

Research and development expenses

(123,313)

(121,942)

(123,054)

(17,596)

(512,637)

(496,677)

(71,024)

Sales and marketing expenses

(62,798)

(70,107)

(78,066)

(11,163)

(274,049)

(266,567)

(38,119)

General and administrative expenses

(81,054)

(57,729)

(125,958)

(18,012)

(254,840)

(308,875)

(44,169)

Total operating expenses

(267,165)

(249,778)

(327,078)

(46,771)

(1,041,526)

(1,072,119)

(153,312)

Other income, net

4,010

8,854

17,516

2,505

42,496

37,481

5,360

Operating loss

(92,692)

(14,300)

(64,854)

(9,273)

(189,576)

(162,505)

(23,238)

Interest income

75,234

34,655

32,144

4,597

391,389

190,789

27,282

Impairment loss of investments

(151,089)

(8,698)

(81,458)

(11,648)

(232,466)

(120,156)

(17,182)

Disposal gain of investments

-

1,500

-

-

-

1,500

214

Foreign currency exchange losses, net

(522)

(2,008)

(2,182)

(312)

(3,802)

(6,718)

(961)

(Loss) income before income tax expenses

(169,069)

11,149

(116,350)

(16,636)

(34,455)

(97,090)

(13,885)

Income tax expenses

(3,134)

(508)

(1,662)

(238)

(13,500)

(12,806)

(1,831)

(Loss) income before (loss) income in equity 
     method investments, net of income taxes

(172,203)

10,641

(118,012)

(16,874)

(47,955)

(109,896)

(15,716)

(Loss) income in equity method investments,
     net of income taxes

-

(1,085)

429

61

-

(2,695)

(385)

Net (loss) income attributable to HUYA Inc.

(172,203)

9,556

(117,583)

(16,813)

(47,955)

(112,591)

(16,101)

Net (loss) income attributable to ordinary
     shareholders

(172,203)

9,556

(117,583)

(16,813)

(47,955)

(112,591)

(16,101)

HUYA INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)

(All amounts in thousands, except share, ADS, per share data and per ADS data)

Three Months Ended

Twelve Months Ended

December 31,

2024

September 30,

2025

December 31,

2025

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2025

RMB

RMB

RMB

US$

RMB

RMB

US$

Net (loss) income per ordinary share

  —Basic

(0.75)

0.04

(0.51)

(0.07)

(0.21)

(0.49)

(0.07)

  —Diluted

(0.75)

0.04

(0.51)

(0.07)

(0.21)

(0.49)

(0.07)

Net (loss) income per ADS*

  —Basic

(0.75)

0.04

(0.51)

(0.07)

(0.21)

(0.49)

(0.07)

  —Diluted

(0.75)

0.04

(0.51)

(0.07)

(0.21)

(0.49)

(0.07)

Weighted average number of ADS used in
     calculating net (loss) income per ADS

  —Basic

230,581,559

229,032,506

229,212,223

229,212,223

231,533,388

228,840,636

228,840,636

  —Diluted

230,581,559

231,210,726

229,212,223

229,212,223

231,533,388

228,840,636

228,840,636

*

Each ADS represents one Class A ordinary share.

(1)

Share-based compensation was allocated in cost of revenues and operating expenses as follows:

Three Months Ended

Twelve Months Ended

December 31,

2024

September 30,

2025

December 31,

2025

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2025

RMB

RMB

RMB

US$

RMB

RMB

US$

Cost of revenues

3,268

1,666

3,335

477

15,566

12,091

1,729

Research and development expenses

6,283

4,335

5,561

795

27,269

22,772

3,256

Sales and marketing expenses

164

213

214

31

1,147

1,141

163

General and administrative expenses

7,683

8,435

13,720

1,962

20,538

37,588

5,375

HUYA INC.

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, except share, ADS, per share data and per ADS data)

Three Months Ended

Twelve Months Ended

December 31,

2024

September 30,

2025

December 31,

2025

December 31,

2025

December 31,

2024

December 31,

2025

December 31,

2025

RMB

RMB

RMB

US$

RMB

RMB

US$

Gross profit

170,463

226,624

244,708

34,993

809,454

872,133

124,714

Share-based compensation expenses allocated
     in cost of revenues

3,268

1,666

3,335

477

15,566

12,091

1,729

Non-GAAP gross profit

173,731

228,290

248,043

35,470

825,020

884,224

126,443

Operating loss

(92,692)

(14,300)

(64,854)

(9,273)

(189,576)

(162,505)

(23,238)

Share-based compensation expenses

17,398

14,649

22,830

3,265

64,520

73,592

10,523

Amortization of intangible assets from
     business acquisitions

5,964

5,958

5,915

846

23,772

23,874

3,414

Non-GAAP operating (loss) income

(69,330)

6,307

(36,109)

(5,162)

(101,284)

(65,039)

(9,301)

Net (loss) income attributable to HUYA Inc.

(172,203)

9,556

(117,583)

(16,813)

(47,955)

(112,591)

(16,101)

Gain arising from disposal of an equity
     investment, net of income taxes

-

(1,500)

-

-

-

(1,500)

(214)

Impairment loss of investments

151,089

8,698

81,458

11,648

232,466

120,156

17,182

Share-based compensation expenses

17,398

14,649

22,830

3,265

64,520

73,592

10,523

Amortization of intangible assets from
     business acquisitions, net of income taxes

4,950

4,945

4,910

702

19,731

19,816

2,834

Non-GAAP net income (loss) attributable to
     HUYA Inc.

1,234

36,348

(8,385)

(1,198)

268,762

99,473

14,224

Net (loss) income attributable to ordinary
     shareholders

(172,203)

9,556

(117,583)

(16,813)

(47,955)

(112,591)

(16,101)

Gain arising from disposal of an equity
     investment, net of income taxes

-

(1,500)

-

-

-

(1,500)

(214)

Impairment loss of investments

151,089

8,698

81,458

11,648

232,466

120,156

17,182

Share-based compensation expenses

17,398

14,649

22,830

3,265

64,520

73,592

10,523

Amortization of intangible assets from
      business acquisitions, net of income taxes

4,950

4,945

4,910

702

19,731

19,816

2,834

Non-GAAP net income (loss) attributable to
     ordinary shareholders

1,234

36,348

(8,385)

(1,198)

268,762

99,473

14,224

Non-GAAP net income (loss) per ordinary
     share

  —Basic

0.01

0.16

(0.04)

(0.01)

1.16

0.43

0.06

  —Diluted

0.01

0.16

(0.04)

(0.01)

1.15

0.43

0.06

Non-GAAP net income (loss) per ADS

  —Basic

0.01

0.16

(0.04)

(0.01)

1.16

0.43

0.06

  —Diluted

0.01

0.16

(0.04)

(0.01)

1.15

0.43

0.06

Weighted average number of ADS used in
     calculating Non-GAAP net income
      (loss) per ADS

  —Basic

230,581,559

229,032,506

229,212,223

229,212,223

231,533,388

228,840,636

228,840,636

  —Diluted

232,217,347

231,210,726

229,212,223

229,212,223

233,875,454

231,442,937

231,442,937

SOURCE HUYA Inc.

, /PRNewswire/ -- China Literature Limited ("China Literature" or "the Company", stock code: 0772), a leading online literature and intellectual property ("IP") incubation platform in China, today announced the audited consolidated results for the year ended December 31, 2025.

Results Highlights (1)

Total revenues were RMB7,366.2 million (USD1,048.0 million), compared with RMB8,121.1 million of 2024.
- Revenues from online business were RMB4,047.0 million (USD575.8 million), compared with RMB4,030.6 million in 2024.
- Revenues from intellectual property operations and others were RMB3,319.1 million (USD472.2 million), compared with RMB4,090.5 million in 2024, mainly attributable to scheduling delays that led to fewer releases of drama series and film projects in 2025. On an IFRS basis:
- Operating loss was RMB804.5 million (USD114.5 million), compared with RMB336.1 million in 2024.
- Loss attributable to equity holders of the Company was RMB776.1 million (USD110.4 million), compared with a loss of RMB209.2 million in 2024, primarily due to a RMB1.8 billion impairment loss of goodwill attributable to New Classics Media.
- Basic loss per share was RMB0.76. Diluted loss per share was RMB0.76. On a non-IFRS (2) basis, which is intended to reflect core earnings by excluding certain one-time and/or non-cash items:
- Operating profit was RMB735.2 million (USD104.6 million), compared with RMB985.4 million in 2024.
- Profit attributable to equity holders of the Company was RMB858.5 million (USD122.1 million), compared with RMB1,141.7 million in 2024.
- Basic earnings per share was RMB0.84. Diluted earnings per share was RMB0.84. (1) Figures stated in USD are based on USD1 to RMB7.0288.

(2) Non-IFRS adjustments exclude share-based compensation, M&A related impact such as impairment provisions, net losses/(gains) from investee companies and amortization of intangible assets, as well as related income tax effects.

(3) Certain figures included in this press release have been subject to rounding adjustments. Accordingly, figures shown as totals may not be an arithmetic aggregation of the figures shown in the breakdown items.

Mr. Hou Xiaonan, Chief Executive Officer of China Literature, commented, "In 2025, our premium content ecosystem delivered solid growth. For the first time, two blockbuster titles surpassed 300,000 average subscriptions per chapter, validating the massive, sustained demand for our premium content. We upgraded our IP operations by embracing new production models and technologies across our extensive library. This strategy drove robust results in traditional formats such as drama and animation, while sparking major breakthroughs in the fast-growing short drama and AI-animated drama formats. Our premium short drama strategy delivered frequent breakout hits, while the AI-animated drama business had a strong debut. Since the second half of 2025, we have released nearly 1,000 AI-animated dramas, with over 100 surpassing 10 million views and 12 exceeding 100 million views. Revenue from AI-animated drama in the second half of 2025 exceeded RMB100 million. Meanwhile, our IP merchandise business sustained rapid growth, with full-year GMV exceeding RMB1.1 billion, more than double the 2024 figure and a new record.

Looking ahead, we stand at the dawn of a new wave of transformation in the content industry. New business models are emerging, and AI is accelerating production workflows. Our leading ecosystems in literature, comics, and animation continue to thrive, and we are cultivating new content ecosystems in formats such as short drama and AI-animated drama. As we embrace AI, we are intensifying efforts to empower creators for the AI era. That said, regardless of how formats evolve, one timeless truth remains: high-quality content is and will always be at the core. This is the foundation of China Literature. We possess the industry's deepest IP library and the most robust creator ecosystem, now with AI as a powerful accelerator. Together, these strengths are unlocking new value-creation opportunities for premium IPs. We will continue to deepen AI integration across creative assistance, premium production, IP development, and global expansion to drive China Literature's sustainable, long-term, and high-quality growth."

Financial Review (3)

Revenues were RMB7,366.2 million (USD1,048.0 million), compared with RMB8,121.1 million of 2024.

Revenues from online business were RMB4,047.0 million (USD575.8 million), compared with RMB4,030.6 million in 2024. A breakdown of this category is below:

i) Online business revenues from our self-owned platform products increased by 0.9% year-over-year to RMB3,562.3 million (USD506.8 million). This was mainly driven by the Company's focus on improving core product operations and continuous production of high-quality content.

ii) Online business revenues from our channels on Tencent products decreased by 22.3% year-over-year to RMB190.6 million (USD27.1 million). This was mainly driven by a decrease in advertising revenues associated with the continuous refinement of content distribution practices of Tencent channels and prioritization of distribution through the Company's core pay-to-read products.

iii) Online business revenues from third-party platforms increased by 15.7% year-over-year to RMB294.2 million (USD41.9 million), primarily due to expanded collaboration with third-party distribution partners.

Revenues from IP operations and others were RMB3,319.1 million (USD472.2 million), compared with RMB4,090.5 million in 2024.

i) Revenues from IP operations decreased by 20.0% year-over-year to RMB3,191.6 million (USD454.1 million). The decrease was primarily due to scheduling delays that led to fewer releases of drama series and film projects in 2025. Meanwhile, new businesses such as IP merchandise products, short dramas, and AI-animated dramas have been developing rapidly. In particular, the IP merchandise products business generated over RMB1.1 billion in GMV in 2025, over twice the RMB500 million in 2024; and our AI-animated dramas business generated over RMB100 million revenue in the second half of 2025.

ii) Revenues from the "others" category, mainly generated by sales of physical books, increased by 28.4% year-over-year to RMB127.5 million (USD18.1 million).

Cost of revenues decreased by 5.5% year-over-year to RMB3,969.4 million (USD564.7 million), primarily due to lower production costs of drama series and films, in line with the decrease in revenues from fewer releases during the year.

Gross profit was RMB3,396.8 million (USD483.3 million), compared with RMB3,921.9 million in 2024. Gross margin was 46.1%, compared with 48.3% in 2024.             

Selling and marketing expenses decreased by 11.1% year-over-year to RMB2,011.0 million (USD286.1 million), as a result of a decrease in marketing and promotional expenses associated with the lighter release schedule of drama series and film projects. As a percentage of revenues, selling and marketing expenses were 27.3% in 2025, compared with 27.8% in 2024.

General and administrative expenses decreased by 11.9% year-over-year to RMB1,007.3 million (USD143.3 million), primarily due to lower employee-related expenses. As a percentage of revenues, general and administrative expenses decreased to 13.7% in 2025, compared with 14.1% in 2024.

Net other losses were RMB1,245.8 million (USD177.2 million) in 2025, compared with net other losses of RMB973.9 million in 2024. The net other losses in 2025 were primarily due to a RMB1.8 billion impairment loss of goodwill attributable to New Classics Media, and was partially offset by gains from certain investee companies.

Interest income decreased by 6.4% year-over-year to RMB167.0 million (USD23.8 million).

Net provision for impairment losses on financial assets was RMB104.1 million (USD14.8 million) in 2025, primarily reflecting the provision for doubtful receivables associated with IP operation businesses.

Operating loss was RMB804.5 million (USD114.5 million) in 2025, compared with RMB336.1 million operating loss in 2024. On a non-IFRS basis, operating profit was RMB735.2 million (USD104.6 million), compared with RMB985.4 million in 2024.

Income tax expense increased by 44.7% year-over-year to RMB160.1 million (USD22.8 million), primarily due to an increase in taxable income.

Loss attributable to equity holders of the Company was RMB776.1 million (USD110.4 million) in 2025, compared with a loss of RMB209.2 million in 2024. On a non-IFRS basis, profit attributable to equity holders of the Company was RMB858.5 million (USD122.1 million), compared with a profit of RMB1,141.7 million in 2024.

Key Operating Information

- Average MAUs on the Company's self-owned platform products and self-operated channels were 137.8 million in 2025, compared with 166.6 million in 2024. A further breakdown of MAUs is below:

i) MAUs on our self-owned platform products remained stable on a year-over-year basis at 104.1 million, compared with 103.8 million in 2024; and

ii) MAUs on our self-operated channels on Tencent products were 33.7 million, compared with 62.8 million in 2024, primarily due to our ongoing optimization of operational efficiency by concentrating more content distribution through our core pay-to-read products which resulted in a decline in user acquisition through free-to-read channels.

- Average MPUs on our self-owned platform products and self-operated channels were 9.0 million in 2025, compared with 9.1 million in 2024. This was mainly due to an increase in promotional activities during the year, which led to some low-spending users being classified as free users over the period.

- Monthly ARPU for our pay-to-read business was RMB32.9, increased by 2.8% year-over-year from RMB32.0 in 2024, mainly due to a decline in the proportion of low-spending users.

Other Key Information

- EBITDA was RMB477.4 million (USD67.9 million), compared with RMB729.3 million in 2024. Adjusted EBITDA was RMB614.0 million (USD87.4 million), compared with RMB923.1 million in 2024.

- As of December 31, 2025, the Company's net cash position was RMB9,436.0 million (USD1,342.5 million).

Business Review

IP Creation

Our premium online reading content ecosystem continued to generate strong momentum. In 2025, our platform attracted 400,000 new writers, generated over 800,000 new novels, and added more than 42 billion characters, providing a steady pipeline of high-quality content. On our flagship Qidian Reading App, the number of new titles with over 100,000 average subscriptions per chapter grew 40% year-over-year, and for the first time, two blockbuster titles surpassed 300,000 average subscriptions per chapter, reflecting a material leap in top-tier creative output. Young writers showed strong commercial potential: writers born after 1995 accounted for 70% of new signers, and the number of post-2000 writers earning over RMB1 million annually surged by 150%, injecting strong momentum into our pipeline. Our community has also become more robust: works exceeding 100,000 collections increased by 80%, and titles receiving over 10,000 monthly tickets increased by 20%.

IP Visualization

In 2025, we delivered positive results across our traditional areas of strength, such as film, drama series, and animation, with China Literature's IPs dominating various major industry rankings. More importantly, we embraced new production models and technologies, leveraging our rich IP library to expand into emerging businesses like short drama and AI-animated drama, achieving significant progress and laying the foundation for an "IP + AI" creation ecosystem.

In the premium drama series and film segment, several top-tier series adapted from our IPs premiered in 2025, such as "A Record of a Mortal's Journey to Immortality (凡人修仙传)", "Flourished Peony (国色芳华)", and "I am Nobody (异人之下之决战！碧游村)", all of which ranked No.1 on platform popularity charts during their respective broadcast periods. According to Enlightent, five out of the top 10 long-form dramas by cumulative views across all platforms of 2025 were adapted from our IPs. Meanwhile, our self-produced premium series "The Narcotic Operation (扫毒风暴)" debuted on Tencent Video, reaching a popularity index above 28,000 and earning praise from multiple mainstream media outlets. In early 2026, we also released the drama series "The Richest Poor Guy (年少有为)" and "The Devil Between Us (除恶)", both of which received critical acclaim and strong audience traction.

In the animation segment, sequel series such as "Battle Through the Heavens (斗破苍穹)", "Stellar Transformations (星辰变)", and "Candle in the Tomb (鬼吹灯)" consistently ranked among the top titles on platform popularity charts. According to Enlightent, nine out of the top 10 animation series by cumulative views across all platforms of 2025 were adapted from our IPs, reinforcing our clear leadership in animation.

Our IPs have also demonstrated their appeal through award-winning adaptations. At Tencent Video's 2025 Golden Goose Honors, drama and animation adaptations of China Literature's IPs—such as "Guardians of the Dafeng (大奉打更人)" and "Lord of the Mysteries (诡秘之主)"—won multiple awards.

In the short drama segment, we launched more than 120 short dramas in 2025, delivering strong results from our premium-content strategy with frequent breakout hits. One representative title set a record with gross revenue exceeding RMB80 million and ranked No.4 on Enlightent's viewership charts in 2025 with more than 3.5 billion views. We have expanded beyond our strength in modern romance into male-oriented genres, period and costume dramas, and more—building a diversified, high-quality premium content matrix with long lifecycles. The success of short drama is rooted in China Literature's rich IP reserve, robust creator network, and end-to-end IP development capabilities. We are also extending our short drama footprint through strategic investments, further strengthening our advantage in premium content.

In the AI-animated drama segment, we launched four major initiatives to build a dedicated ecosystem.

IP resources: We opened our IP library, including annual top-ten hits and diverse genre content, for creators and production teams. Creative support: We established a RMB100 million creation fund to support writers' cross‑media experimentation and facilitate the growth of high‑quality teams. Technology support: We launched AIGC tools such as the "AI‑Animated Drama Assistant (漫剧助手)", providing end-to-end support from content analysis to asset production and significantly accelerating adaptation workflows. Industry collaboration: We implemented full‑stack support across production, distribution, and IP partnerships to build an open, efficient, and mutually beneficial AI animated drama ecosystem. These initiatives fueled rapid growth of our AI-animated drama business. Since its official launch in the second half of 2025, revenue from AI-animated drama series has surpassed RMB100 million, showing strong momentum and promising market potential.

IP Commercialization and Monetization

We achieved historic breakthroughs and accelerated our systematic build-out in 2025. GMV of the IP merchandise products business exceeded RMB1.1 billion, more than double the figure of 2024. This was driven by four core engines: product, channel, operation, and ecosystem.

Product: Our design capabilities and supply chain efficiency improved further, achieving industry-leading speed and quality. We expanded into new categories such as precious metals, vinyl plush toys, bags and accessories, and introduced new sales mechanics such as Ichiban Kuji draws. Channel: We refined our self-operated e-commerce matrix comprising "self-operated live streaming rooms + flagship online stores + mini-programs", and continued to expand offline self-operated stores across 10 core cities nationwide. We also teamed with over 10,000 channel partners to reach users across everyday consumption scenarios. Operation: We ran a series of online and offline campaigns around multiple top IPs to strengthen IP influence and fan engagement. Ecosystem: We advanced our "IP + Consumer" strategy by entering into licensing partnerships with over 200 leading consumer brands, embedding our IP across diverse everyday scenarios. In the game segment, we continued to license high-quality IPs to partners. Our flagship title "Douluo Continent: Soul Hunting World (斗罗大陆猎魂世界)" recorded RMB300 million in gross billings in its first month after launching in the summer break of 2025. Several new games also secured publication licenses, including "Battle Through the Heavens (斗破苍穹)", "Douluo Continent (斗罗大陆)", "The Hidden Ones (异人之下)", "Lord of the Mysteries (诡秘之主)", "Dao of the Bizarre Immortal (道诡异仙)", and "A Record of a Mortal's Journey to Immortality (凡人修仙传)".

New Technology Explorations and Practices

In 2025, we embedded AI across our entire content-production chain and built a suite of AI solutions spanning the full IP lifecycle.

Online literature: Our "Writer Assistant (作家助手)" creation platform received a major upgrade with the integration of the "Smart Pen Tongjian (妙笔通鉴)" AI engine, which can perform real-time, in-depth analysis of tens of millions of words to support writers. The tool is now officially available industry-wide. IP adaptation: We launched the "Copyright Assistant (版权助手)", which deep mines China Literature's library of millions of works and accurately matches titles to meet downstream adaptation needs, significantly accelerating the sourcing, screening, and development of high-quality IP assets. AI-animated drama: Our "AI-animated Drama Assistant (漫剧助手)" integrates with multiple leading multimodal large models, supporting a full production workflow from text to visuals, significantly improving adaptation efficiency and greatly lowering the barrier to animated drama production. Global expansion: AI translation has substantially expanded the international reach of Chinese-language works. As at the end of 2025, more than 17,000 AI-translated works were available on WebNovel, with revenue increasing by 39% year-over-year and contributing more than one-third of the platform's total revenues, making AI translation a key driver of overseas growth. We believe the synergy between IP and AI will continue to power the industry forward. IP is the soul, AI is the engine. The role of technology is to maximize the impact of exceptional stories. From leading deployment in new formats such as AI-animated drama to systematic improvements in IP development efficiency and value creation, our "IP + AI" ecosystem will serve as a scalable engine that amplifies content value and drives China Literature's sustainable, long-term growth.

About China Literature Limited

China Literature is dedicated to building a deep and immersive intellectual property ("IP") universe for the Mandarin-speaking world. It incubates original IPs from its online literature platform, which are subsequently adapted to a range of digital entertainment mediums, including comics, animation, film, TV series, web series, games, short dramas and AI-animated dramas. The virtual world created by these digital offerings becomes an inseparable part of a user's daily life. China Literature creates and promotes IPs mainly through Qidian Reading and QQ Reading, its leading online literature platforms, as well as New Classics Media, a renowned film and TV drama series production house in China. China Literature collaborates with Tencent, its shareholder and strategic partner, as well as other third-party partners to distribute and develop IP content and to enhance the value of its IP. Many of the Company's online literature works have been successfully adapted into animation, TV series, web series, films, games, short dramas and AI-animated dramas, including Joy of Life, Candle in the Tomb, Soul Land, The King's Avatar and My Heroic Husband. China Literature's rich and extensive content library as well as its unparalleled capability and resources to adapt IP into various entertainment formats is a significant competitive advantage that lies at the core of its business model. For more information, please visit http://ir.yuewen.com/.

Non-IFRS Financial Measures

To supplement the consolidated financial statements of the Company prepared in accordance with IFRS, certain non-IFRS financial measures, namely non-IFRS operating profit, non-IFRS operating margin, non-IFRS profit for the year, non-IFRS net margin, non-IFRS profit attributable to equity holders of the Company, non-IFRS basic EPS and non-IFRS diluted EPS as additional financial measures, have been presented in this press release for the convenience of readers. These unaudited non-IFRS financial measures should be considered in addition to, and not as a substitute for, measures of the Company's financial performance prepared in accordance with IFRS. These unaudited non-IFRS measures may be defined differently from similar terms used by other companies. In addition, non-IFRS adjustments include relevant non-IFRS adjustments for the Company's material associates based on available published financials of the relevant material associates, or estimates made by the Company's management based on available information, certain expectations, assumptions and premises.

Our management believes that the presentation of these non-IFRS financial measures, when shown in conjunction with the corresponding IFRS measures, provides useful information to investors and management regarding the financial and business trends relating to the Company's financial condition and results of operations. Our management also believes that the non-IFRS financial measures are useful in evaluating the Company's operating performances. From time to time, there may be other items that the Company may include or exclude in reviewing its financial results.

Forward-Looking Statements

This press release contains forward-looking statements relating to the industry and business outlook, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Company and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realized in future. Underlying the forward-looking statements is a large number of risks and uncertainties. Further information regarding these risks and uncertainties is included in our other public disclosure documents on our corporate website.

CHINA LITERATURE

CONSOLIDATED STATEMENT OF LOSS

Year ended December 31,

2025

2024

(RMB in million, unless specified)

Revenues

Online business(1)

4,047.0

4,030.6

Intellectual property operations and others(2)

3,319.1

4,090.5

7,366.2

8,121.1

Cost of revenues

(3,969.4)

(4,199.1)

Gross profit

3,396.8

3,921.9

Gross margin

46.1 %

48.3 %

Selling and marketing expenses

(2,011.0)

(2,261.0)

General and administrative expenses

(1,007.3)

(1,143.5)

Other losses, net

(1,245.8)

(973.9)

Interest income

167.0

178.3

Net provision for impairment losses

on financial assets

(104.1)

(58.0)

Operating loss

(804.5)

(336.1)

Operating margin

(10.9 %)

(4.1 %)

Finance costs, net

(12.7)

(1.8)

Share of net profit of associates and joint ventures

200.8

239.0

Loss before income tax

(616.3)

(98.9)

Income tax expense

(160.1)

(110.7)

Loss for the year

(776.4)

(209.6)

Net margin

(10.5 %)

(2.6 %)

Loss attributable to:

Equity holders of the Company

(776.1)

(209.2)

Non-controlling interests

(0.3)

(0.4)

(776.4)

(209.6)

Loss per share

(in RMB per share)

- Basic loss per share

(0.76)

(0.21)

- Diluted loss per share

(0.76)

(0.21)

Notes:

(1) Revenues from online business primarily reflect revenues from online paid reading, online advertising and distribution of third-party online games on our platform.

(2) Revenues from intellectual property operations and others primarily reflect revenues from production and distribution of TV, web, and animated series; films; short
dramas; AI-animated dramas; licensing of copyrights; operation of self-operated online games; and sales of IP merchandise products and physical books.

CHINA LITERATURE

CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

Year ended December 31,

2025

2024

(RMB in million)

Loss for the year

(776.4)

(209.6)

Other comprehensive income, net of tax:

Items that may not be reclassified to profit or loss

  Net (loss)/gain from change in fair value of financial
         asset at fair value through other comprehensive income

(8.5)

2.0

  Currency translation differences

(64.3)

79.4

Items that may be subsequently reclassified to profit or loss

Transfer of share of other comprehensive income
      to profit or loss upon deemed disposal of an associate

(1.3)

-

Share of other comprehensive income/(loss) of
      associates and joint ventures

0.2

(0.4)

Currency translation differences

21.1

(18.9)

(52.8)

62.1

Total comprehensive loss for the year

(829.1)

(147.5)

Total comprehensive loss attributable to:

Equity holders of the Company

(828.8)

(147.1)

Non-controlling interests

(0.3)

(0.4)

(829.1)

(147.5)

CHINA LITERATURE

SEGMENT INFORMATION

Year ended December 31,

2025

2024

(RMB in million, except percentages)

Revenues

Online business

4,047.0

4,030.6

Intellectual property operations and others

3,319.1

4,090.5

Total revenues

7,366.2

8,121.1

Cost of revenues

Online business

(1,971.6)

(1,975.0)

Intellectual property operations and others

(1,997.8)

(2,224.1)

Total cost of revenues

(3,969.4)

(4,199.1)

Gross profit

Online business

2,075.4

2,055.6

Intellectual property operations and others

1,321.4

1,866.4

Total gross profit

3,396.8

3,921.9

Gross margin

Online business

51.3 %

51.0 %

Intellectual property operations and others

39.8 %

45.6 %

Total gross margin

46.1 %

48.3 %

CHINA LITERATURE

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of

December 31, 2025

December 31, 2024

(RMB in million)

ASSETS

Non-current assets

Property, plant and equipment

67.9

97.8

Right-of-use assets

173.5

149.8

Intangible assets

4,295.7

6,158.8

Investments in associates and joint ventures

577.4

928.2

Financial assets at fair value through profit or loss

1,324.1

1,039.6

Financial assets at fair value through other comprehensive income

648.1

6.3

Deferred income tax assets

458.1

497.2

Prepayments, deposits and other assets

188.4

298.2

Term deposits

1,709.0

2,308.0

9,442.0

11,484.0

Current assets

Inventories

576.6

693.0

Television series and film rights

649.4

529.8

Financial assets at fair value through profit or loss

2,735.3

3,252.9

Trade and notes receivables

1,905.0

1,703.4

Prepayments, deposits and other assets

1,283.0

907.4

Restricted bank deposits

4.5

4.5

Term deposits

3,303.5

1,106.2

Cash and cash equivalents

1,683.7

3,264.2

12,141.1

11,461.4

Total assets

21,583.1

22,945.4

EQUITY

Capital and reserves attributable to the equity holders of the Company

Share capital

0.6

0.6

Shares held for RSU scheme

(14.6)

(14.6)

Share premium

15,969.2

16,117.9

Other reserves

2,117.7

1,975.8

(Accumulated losses)/Retained earnings

(547.0)

294.7

17,526.0

18,374.4

Non-controlling interests

1.4

1.7

Total equity

17,527.4

18,376.2

As of

December 31, 2025

December 31, 2024

(RMB in million)

LIABILITIES

Non-current liabilities

Lease liabilities

116.8

85.0

Long-term payables

16.3

10.8

Deferred income tax liabilities

124.7

129.4

Deferred revenue

19.6

21.9

277.4

247.2

Current liabilities

Lease liabilities

64.5

81.2

Trade payables

1,210.4

1,044.6

Other payables and accruals

1,102.0

1,662.0

Deferred revenue

989.7

1,148.9

Current income tax liabilities

232.6

217.7

Financial liabilities at fair value through profit or loss

179.0

167.6

3,778.3

4,322.0

Total liabilities

4,055.7

4,569.3

Total equity and liabilities

21,583.1

22,945.4

CHINA LITERATURE

RECONCILIATION OF OPERATING LOSS TO EBITDA AND ADJUSTED EBITDA

Year ended December 31,

2025

2024

(RMB in million)

Reconciliation of operating loss to EBITDA and adjusted EBITDA:

Operating loss

(804.5)

(336.1)

Adjustments:

Interest income

(167.0)

(178.3)

Other losses, net

1,245.8

973.9

Depreciation of property, plant and equipment

38.1

40.3

Depreciation of right-of-use assets

63.6

72.0

Amortization of intangible assets

101.2

157.5

EBITDA

477.4

729.3

Adjustments:

Share-based compensation

131.2

126.4

Expenditures related to acquisition

5.4

67.5

Adjusted EBITDA

614.0

923.1

CHINA LITERATURE

RECONCILIATIONS OF IFRS TO NON-IFRS RESULTS

Year ended December 31, 2025

Adjustments

As
reported

Share-
based
compensation

Net losses
from investments
and acquisitions(1)

Amortization
of intangible
assets(2) 

Tax effect

Non-IFRS

(RMB in million, unless specified)

Operating (loss)/profit

(804.5)

131.2

1,389.4

19.0

-

735.2

(Loss)/profit for the year

(776.4)

131.2

1,389.4

19.0

94.9

858.2

(Loss)/profit attributable to equity holders of the Company

(776.1)

131.2

1,389.4

19.0

94.9

858.5

(Loss)/earnings per share (RMB per share)

- basic

(0.76)

0.84

- diluted

(0.76)

0.84

Operating margin

(10.9 %)

10.0 %

Net margin

(10.5 %)

11.7 %

Year ended December 31, 2024

Adjustments

As
reported

Share-
based
compensation

Net losses
from investments
and acquisitions(1)

Amortization
of intangible
assets(2) 

Tax effect

Non-IFRS

(RMB in million, unless specified)

Operating (loss)/profit

(336.1)

126.4

1,174.8

20.3

-

985.4

(Loss)/profit for the year

(209.6)

126.4

1,174.8

20.3

29.4

1,141.3

(Loss)/profit attributable to equity holders of the Company

(209.2)

126.4

1,174.8

20.3

29.4

1,141.7

(Loss)/earnings per share (RMB per share)

- basic

(0.21)

1.13

- diluted

(0.21)

1.12

Operating margin

(4.1 %)

12.1 %

Net margin

(2.6 %)

14.1 %

Notes:

(1)  Mainly includes goodwill impairment; the impairment provision, gains on disposal and deemed disposal,
      and fair value changes arising from our investee companies; the fair value changes of consideration liabilities
      related to the acquisition of NCM; and the compensation costs for certain employees and former owners related to acquisitions.

(2)  Represents amortization of intangible assets and TV series and film rights resulting from acquisitions.

SOURCE China Literature

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Updated: Mar 17, 2026, 08:50 GMT+00:00

Key Points:Gold could move toward $6,500 as slowing U.S. economic growth and rising recession risks increase safe-haven demand.Middle East tensions and rising oil prices raise the risk of higher inflation and stagflation, which historically support gold prices.Bullish chart patterns and strong technical momentum suggest that any short-term correction may attract buyers within the long-term uptrend.

Gold (XAU) prices hit a record high of $5,600 earlier this year. The slower economic growth in the United States and geopolitical tensions in the Middle East created this bullish environment. In my opinion, these conditions favor a further bullish trend of gold despite short term corrections. This analysis discusses the macro drivers, technical structure and key market signals that could be decisive in taking the next move in gold towards $6,500.

Why Slowing U.S. Growth Is Supporting Gold Prices U.S. Economic Data Signals Rising Recession Risks The latest economic data indicate that economic growth in the United States is weakening. The chart below shows that real GDP grew by 0.16% in Q4 2025. This growth is equivalent to annualized growth of less than 0.7% according to the Bureau of Economic Analysis. This revision reduced previous estimate of 1.4% growth by over half.

Other indicators also provide evidence of the slowdown. The Philadelphia Fed Coincident Economic Activity Index only increased by 1.84% in December. The readings below 2.5% have historically been reported before recessions.

Transport and logistics data also tell a similar story. Heavy truck sales are falling, which is a reflection of weaker goods demand and lower industrial activity.

The Cass Freight Shipments Index is also declining which indicates declining shipping volumes for the economy.

These indicators point to weakening of economic momentum and the fact that the United States may enter a recession during 2026. The lower growth support safe haven demand for gold as investors start to anticipate weaker corporate earnings and stress in financial markets.

Middle East Tensions and Rising Oil Prices Increase Inflation Risks At the same time, energy markets are posing another threat to the economic outlook. The emergence of tensions between the United States and Iran has heightened uncertainty in the Middle East. Military strikes and threats of disrupting shipping routes near the Strait of Hormuz have led to fears of disruptions of the world’s oil supply.

Higher oil prices threaten to send inflation back on the rise as tensions in the Middle East disrupt supply routes. Historically, the increase in energy prices has increased inflation figures as shown in the chart below.  When Russia invaded Ukraine in 2022, the WTI Crude jumped to $115 per barrel. This surge in oil prices carried the CPI to around 9%.

According to the latest official data, recent inflation is low, but figures may be understating true pressure in the economy. Core CPI increased 2.5% during the last 12 months while headline CPI was 2.4%. However, these figures were influenced by data gap that was caused by the government shutdown between October and November in which statisticians were unable to collect price data.

Because of this missing information, the Bureau of Labor Statistics assumed that there were no price increases at all for many categories during that period. This artificially reduced the inflation reading. However, the actually CPI inflation is likely to be much higher than these numbers.

If oil prices remain high, inflation pressures may return and make the situation more difficult for the economy and monetary policy. This scenario would raise concerns of stagflation which is defined by the combination of slow growth and rising prices. This situation will lead to higher demand for gold as an investment instrument to protect against inflation and economic instability.

Gold Chart Patterns Show Strong Momentum Toward Higher Prices From a technical perspective, the gold price has broken the key level of $2,075 in 2024. This level was defined by the neckline of the cup and handle pattern. This cup and handle pattern formed from the highs of 2011 through the last quarter of 2023.

The breakout from $2,075 has opened the door for a strong surge to mark record highs at $2,800. This target of $2,800 was the resistance of the long-term ascending trend line. This trend line appears from the 1980s high and meets the resistance of 2011. This resistance area was also broken which fuelled the rally. This built accelerated momentum in the gold market and pushed prices to new record high at $5,600.

The formation of cup and handle pattern and breakout from $2,800 indicate that the gold market remains in a healthy uptrend.

This bullish momentum is also observed on the weekly chart, which shows that the gold market broke symmetrical triangle and took prices to a high of $4,380 in October 2025.

However, the formation of another symmetrical triangle pattern has taken prices towards $5,600, which is considered an extension level as the price broke above the ascending broadening wedge pattern.

The formation of multiple symmetrical triangle patterns and then the breakout above $4,400 from the ascending broadening wedge indicates that the gold market remains in a strong surge mode. However, the price is now again pulling back towards the support of the ascending broadening wedge at $4,800.

If the $5,000 key level is broken, then $4,800 remains another support. A break below $4,800 would indicate a deeper pullback to $4,400.

U.S. Dollar Outlook and Its Impact on Gold Prices The chart below illustrates the movement of the U.S. Dollar Index which is one of the most important markets for gold. The dollar has been trading within a long term ascending channel for many years. The index dropped from the 110 resistance zone and fell back to the 96 support zone, located near the lower edge of the channel.

The index is now rebounding from this support zone towards the resistance of 100.50 which is putting short term pressure on the gold price. Gold and US dollar tend to move in opposite directions. When the US dollar devalued, investors would capitalize on the move and allocate money into gold as an alternative store of value. However, the recent war between the United States and Iran has sparked safe haven rally in the US dollar which is creating uncertainty in the global markets.

A break above 100.50 in US dollar index will put further pressure in the gold market. However, a break below 96 will target the 90 level and take the gold prices towards $6,500.

Gold Price Faces Risk from Strong Dollar and Overbought Signals Despite the strong long term trend, there are a number of risks that may slow the gold rally in the short term. The U.S. dollar is one of the primary risks for the gold market. The Dollar Index is now rebounding from the 96 support level and heading for the 100.50 resistance zone. A stronger dollar tends to put pressure on gold as assets tend to move in opposite directions.

At the same time, the gold market has already moved sharply higher since the break above the $2,700-$2,800, which means prices are stretched in the short-term. Markets do not move in a straight line and periods of consolidation often follow good rallies. If gold breaks through the $5,000 level, prices will drop to $4,800. Moreover, any easing of geopolitical tensions and a decline in oil prices will result in a cooling of gold prices.

Despite the strong and healthy bullish trend in the gold market, the chart below shows an important signal. The gold price has approached the crisis level indicated by the RSI. It is observed that the RSI has reached levels that were last seen in 1973, 1980 and 2008. During those periods gold price marked a high and produced a strong correction.

In 2026, the gold price has again approached overbought levels, indicating a correction. Despite these overbought conditions, the geopolitical and economic uncertainty indicates further upside towards $6,500 once this correction is over.

Gold Price Outlook: Can Gold Reach $6,500 Next? The overall picture for gold is still very good. Economic data indicate that growth in the United States is slowing down, while geopolitical tensions are making the global market more uncertain. At the same time, the higher oil prices increase the risk of a return of inflation. This combination of weak growth and rising prices heightens concerns of stagflation. In such an environment, investors tend to increase their investment in gold as safe haven asset. These macro conditions still favor long term demand for gold.

From a technical viewpoint the market is in a strong uptrend despite short term consolidation. Gold is currently holding above the key support level of $5,000, which is important area for the bullish structure. The short term volatility could persist as the dollar tries to recover, and momentum indicators are overbought.

However, as long as these support levels hold, any pullback will likely see buyers. The strong support remains $4,000-$4,400. As long as this support holds, the next move in the gold price will likely be towards $6,500 in the coming months.

If you’d like to know more about how to trade gold and silver, please visit our educational area.

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Order Backlog at $28.1 billion; Revenues of $7.9 billion; GAAP net income of $534 million; Non-GAAP net income of $598 million; GAAP net EPS of $11.39; Non-GAAP net EPS of $12.75; 

, /PRNewswire/ -- Elbit Systems Ltd. ("Elbit Systems" or the "Company") (NASDAQ: ESLT) (TASE: ESLT), the international high technology defense company, reported today its consolidated results for the fourth quarter and full year ended December 31, 2025.

In this release, the Company is providing US-GAAP results as well as additional non-GAAP financial data, which are intended to provide investors a more comprehensive view of the Company's business results and trends. For a description of the Company's non-GAAP definitions see page 15 below, "Non-GAAP financial data". Unless otherwise stated, all financial data presented is US-GAAP financial data.

Management Comment:

Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented:

"The Company is reporting excellent financial results. In 2025, revenues grew by 16%, profit margins expanded significantly, GAAP net EPS increased by 59%, non-GAAP net EPS increased by 46% and backlog grew by $5.5 billion surpassing the $28 billion mark. We also generated record Free Cash Flow of more than $550 million, representing a 100% cash conversion rate.

During 2025, Elbit Systems achieved significant milestones, most notably securing a contract from the IMOD for an Airborne High–Power Laser (HPL) combat jet fighter Pod and for a High–Power Laser (HPL) system for helicopters.

The Company continues to meet its commitments to an expanding global customer base while strengthening its presence across Europe, the United States, and Asia.

We continued to invest heavily in disruptive R&D programs, including AI enhancements across multiple platforms for a total sum of over $500 million. In addition, we are making significant strategic CAPEX investments to address growing global capacity constraints, recognizing that capacity is a critical element of our long–term strategy.

Elbit Systems and its employees are playing a key role in providing the IMOD and the IDF capabilities during the Operation Roaring Lion and will continue to serve as a strategic partner to its global customers, maintaining the highest standards and remaining at the forefront of global defense innovation."

Fourth quarter 2025 results:

Revenues in the fourth quarter of 2025 increased by 11.3% to $2,148.6 million from $1,930.2 million in the fourth quarter of 2024.

C4I and Cyber revenues increased by 19%, mainly due to sales of radio systems and command and control systems in Europe and Israel. ISTAR and EW revenues increased by 39%, mainly due to increased sales of Maritime systems, Electro-Optic systems and C-UAS Electronic Warfare. Land revenues increased by 22%, mainly due to ammunition and munition sales in Israel and in Europe. Elbit Systems of America revenues increased by 9%, mainly due to the increase in sales of Night-Vision systems and Maritime systems, partially offset by the decrease in sales of medical devices. Aerospace revenues decreased by 14% in the fourth quarter of 2025, as compared to the fourth quarter of 2024, mainly due to the decrease in training and simulation sales in Europe and significant sales of Precision Guided Munition (PGM) in the fourth quarter of 2024.

For distribution of revenues by segments and geographic regions see tables on page 13.

GAAP gross profit in the fourth quarter of 2025 was $529.8 million (24.7% of revenues), as compared to $465.2 million (24.1% of revenues) in the fourth quarter of 2024. Non-GAAP(*) gross profit amounted to $536.3 million (25.0% of revenues) in the fourth quarter of 2025, as compared to $472.1 million (24.5% of revenues) in the fourth quarter of 2024. The increase in gross profit in the fourth quarter of 2025 was in line with the increase in the Company's activity and order backlog.

Research and development expenses, net were $144.1 million (6.7% of revenues) in the fourth quarter of 2025, as compared to $131.2 million (6.8% of revenues) in the fourth quarter of 2024.

Marketing and selling expenses, net were $116.1 million (5.4% of revenues) in the fourth quarter of 2025, as compared to $107.2 million (5.6% of revenues) in the fourth quarter of 2024.

General and administrative expenses, net were $77.2 million (3.6% of revenues) in the fourth quarter of 2025, as compared to $85.4 million (4.4% of revenues) in the fourth quarter of 2024.

GAAP operating income in the fourth quarter of 2025 was $192.5 million (9.0% of revenues), as compared to $141.4 million (7.3% of revenues) in the fourth quarter of 2024. Non-GAAP(*) operating income was $210.8 million (9.8% of revenues) in the fourth quarter of 2025, as compared to $157.5 million (8.2% of revenues) in the fourth quarter of 2024.

Financial expenses, net were $34.0 million in the fourth quarter of 2025, as compared to $45.9 million in the fourth quarter of 2024.

* see page 15

Other income, net was $24.2 million in the fourth quarter of 2025, as compared to other expenses, net of $6.5 million in the fourth quarter of 2024. Other income, net in the fourth quarter of 2025 included mainly capital gains from the termination of the pension plans, in the amount of approximately $13.7 million, and from the revaluation of investments in affiliated companies held under the fair value method of approximately $11.8 million.

Taxes on income in the fourth quarter of 2025 were $21.0 million, as compared to $3.4 million in the fourth quarter of 2024. The lower tax rate in 2024 relates to adjustments made for prior years following tax settlements in some of the Company's subsidiaries in Israel.

Equity in net earnings of affiliated companies were $7.0 million in the fourth quarter of 2025, as compared to $4.6 million the fourth quarter of 2024.

GAAP net income attributable to the Company's shareholders in the fourth quarter of 2025 was $168.2 million (7.8% of revenues), as compared to $90.0 million (4.7% of revenues) in the fourth quarter of 2024. Non-GAAP(*) net income attributable to the Company's shareholders in the fourth quarter of 2025 was $169.9 million (7.9% of revenues), as compared to $119.3 million (6.2% of revenues) in the fourth quarter of 2024. The increase in net income for the fourth quarter of 2025 was primarily driven by increased revenues.

GAAP diluted earnings per share attributable to the Company's shareholders in the fourth quarter of 2025 were $3.52, as compared to $2.00 in the fourth quarter of 2024. Non-GAAP(*) diluted net earnings per share attributable to the Company's shareholders were $3.56 for the fourth quarter of 2025, as compared to $2.66 for the fourth quarter of 2024.

Full year 2025 results:

Revenues for the year ended December 31, 2025 increased by 16.3% to $7,938.6 million from $6,827.9 million in 2024.

C4I and Cyber revenues increased by 16% year-over-year mainly due to sales of radio systems and command and control systems in Europe and Israel. ISTAR and EW revenues increased by 16% mainly due to increased sales of Maritime systems, Electro-Optic systems which include Space systems, as well as a variety of Electronic Warfare systems including C-UAS. Land revenues increased by 38% mainly due to the increase in sales of ammunition and munitions in Israel and Europe. Elbit Systems of America revenues increased by 7% mainly due to the increase in sales of night-vision systems and Maritime systems, partially offset by the decrease in medical devices sales. Aerospace revenues increased by 2% in 2025 as compared to 2024, mainly due to increased sales of Precision Guided Munition (PGM) in Asia Pacific and Israel, partially offset by lower training and simulation sales in Europe.

For distribution of revenues by segments and by geographic regions see tables on page 13.

Cost of revenues for the year ended December 31, 2025 was $6,003.4 million, as compared to $5,186.1 million in the year ended December 31, 2024.

* see page 15

GAAP gross profit in 2025 was $1,935.3 million (24.4% of revenues), as compared to $1,641.8 million (24.0% of revenues) in 2024. Non-GAAP(*) gross profit for the year ended December 31, 2025 was $1,961.8 million (24.7% of revenues), as compared to $1,671.0 million (24.5% of revenues) in the year ended December 31, 2024.

Research and development expenses, net for the year ended December 31, 2025 were $517.1 million (6.5% of revenues), as compared to $466.4 million (6.8% of revenues) in the year ended December 31, 2024. The increase in research and development expenses, net during 2025 was mainly due to significant investments expanding the Company's portfolio of ammunition and munitions, as well as increased investment in Night Vision solutions.

Marketing and selling expenses, net for the year ended December 31, 2025 were $399.4 million (5.0% of revenues), as compared to $375.4 million (5.5% of revenues) in the year ended December 31, 2024.

General and administrative expenses, net for the year ended December 31, 2025 were $347.3 million (4.4% of revenues), as compared to $311.0 million (4.6% of revenues) in the year ended December 31, 2024.

GAAP operating income in 2025 was $671.4 million (8.5% of revenues), as compared to $489.1 million (7.2% of revenues) in 2024. Non-GAAP(*) operating income for the year ended December 31, 2025 was $737.8 million (9.3% of revenues), as compared to $550.4 million (8.1% of revenues) in the year ended December 31, 2024.

C4I and Cyber operating income in 2025 was $55.9 million (6.0% of C4I and Cyber segment revenues), compared to $62.0 million (7.8% of segment revenues in 2024). The $6.1 million decrease in operating income was mainly due to a project mix.

ISTAR and EW operating income in 2025 was $129.1 million (8.5% of ISTAR and EW segment revenues), compared to $96.1 million (7.3% of segment revenues in 2024). The $33.0 million increase in operating income was mainly due to increased revenues and positive project mix.

Land operating income in 2025 was $263.7 million (11.4% of Land segment revenues), compared to $150.7 million (9.0% of segment revenues in 2024). The $113.0 million increase in operating income was mainly due to increased revenues in munition and ammunition in Israel and Europe.

ESA operating income in 2025 was $122.8 million (7.2% of ESA segment revenues), compared to operating revenues of $56.2 million (3.5% of segment revenues in 2024). The $66.6 million increase in operating income was mainly due to new contracts signed for Night-Vision and Maritime systems, as well as positive program mix.

Aerospace operating income in 2025 was $151.9 million (7.4% of Aerospace segment revenues), compared to $149.1 million (7.3% of segment revenues in 2024).

For distribution of operating income by segments see tables on page 14.

Financial expenses, net for the year ended December 31, 2025 were $138.6 million, as compared to $151.1 million in the year ended December 31, 2024. The decrease in financial expenses, net in 2025, was mainly due to lower interest expenses and lower level of debt.

* see page 15

Other income, net in 2025 was $29.1 million, as compared to $3.8 million in 2024. Other income, net in 2025 included mainly capital gains from the termination of the pension plans in the amount of approximately $13.7 millions, and revaluation of investments in affiliated companies held under the fair value method of approximately $11.8 millions.

Taxes on income for the year ended December 31, 2025 were $55.5 million (effective tax rate of 9.9%), as compared to $39.1 million (effective tax rate of 11.4%) in the year ended December 31, 2024. The decrease in the tax rate in 2025 was as a result of the valuation allowance releases and adjustments to deferred taxes related to prior years following tax settlements in some of the Company's subsidiaries in Israel.

Equity in net earnings of affiliated companies for the year ended December 31, 2025 were $29.2 million, as compared to $19.2 million in the year ended December 31, 2024.

GAAP net income attributable to the Company's shareholders in the year ended December 31, 2025 was $534.3 million (6.7% of revenues), as compared to $321.1 million (4.7% of revenues) in the year ended December 31, 2024. Non-GAAP(*) net income attributable to the Company's shareholders for the year ended December 31, 2025 was $598.0 million (7.5% of revenues), as compared to $391.5 million (5.7% of revenues) in the year ended December 31, 2024. The increase in net income in 2025 was mainly due to the increase in revenues.

GAAP diluted net earnings per share attributable to the Company's shareholders in the year ended December 31, 2025 were $11.39, as compared to $7.18 in the year ended December 31, 2024. Non-GAAP(*) diluted net earnings per share attributable to the Company's shareholders for the year ended December 31, 2025 were $12.75, as compared to $8.76 for the year ended December 31, 2024.

The Company's order backlog for the year ended December 31, 2025 totaled $28.1 billion, as compared to $22.6 billion as of December 31, 2024. Approximately 72% of the current backlog is attributable to orders from outside of Israel. Approximately 54% of the current backlog is scheduled to be performed during 2026 and 2027.

Net cash provided by operating activities in the year ended December 31, 2025 was $778.4 million, as compared to $534.6 million in the year ended December 31, 2024. Operating cash flows in 2025 were affected mainly by the increase in contract liabilities offset by the increase in inventories and trade receivables.

* see page 15

Impact of the recent conflicts in the Middle East on the Company.

The war which began on October 7, 2023, continued throughout most of 2025, with ceasefires agreed to between Israel and Lebanon involving the conflict with Hezbollah in November 2024, and, after an intensified period of conflict that lasted 12 days, a ceasefire was declared with Iran in June 2025. A ceasefire with Hamas was agreed to in January 2025, and a subsequent ceasefire with Hamas was agreed to in October 2025. On February 28, 2026, Israel and the U.S. launched a joint attack on Iran named "Operation Roaring Lion" by Israel and "Operation Epic Fury" by the U.S., targeting key Iranian officials and targets. Iran launched attacks against Israel and at U.S. military bases across the region, including strikes in Bahrain, Qatar, Saudi Arabia, Kuwait and Jordan. On March 2, 2026 Hezbollah launched an attack on Israel. The current situation remains uncertain.

Since the commencement of the war and the escalation of conflicts in the Middle East, Elbit Systems has experienced a continued material increase in the demand for its products and solutions from the Israel Ministry of Defense (IMOD) compared to the demand levels prior to the war. Such increased demand may continue and could generate material additional orders to the Company.

As a result of the war and the other conflicts in the Middle East, some of Elbit Systems' operations have experienced disruptions due to supply chain and operational constraints, including among others increases in transportation costs and delays due to factors such as the Houthi movement attacks on shipping in the Red Sea, material and component shortages and elevated prices, employee call-ups for reserve duty, limitations imposed by some countries on engagement with Israel and attacks on some of Elbit Systems' global facilities by anti-Israeli organizations.

Elbit Systems has taken various steps to protect its employees worldwide, to support increased production, to increase raw material and component inventories, to mitigate supply chain disruptions and to maintain business continuity. Following the ceasefire agreements described above, these operational effects on the Company have been reduced, however, in light of the recent escalation of conflicts involving Iran and Hezbollah, such effects on the Company's performance could increase again, depending on future developments that are difficult to predict at this time, including the duration and scope of these conflicts. 

Recent Events:

On November 19, 2025, the Company announced that it has been awarded contracts from the Israel Ministry of Defense in an aggregate amount of approximately $210 million for the upgrade of Merkava Main Battle Tanks (MBTs). The contracts will be performed over a period of six years.

On December 16, 2025, the Company announced that it was notified that the Hellenic Parliament and KYSEA (Government Council for National Security) have approved a budget for the purchase of the Company's PULS rocket artillery system for the Hellenic Armed Forces. Considering the above, Elbit Systems anticipates receiving a contract in an amount that is material to the Company. The anticipated contract award is contingent, among others, on completion of commercial negotiations with the Hellenic Ministry of National Defense.

On January 12, 2026, the Company announced that it has been awarded contracts totaling approximately $275 million, for the supply of advanced airborne self-protection electronic warfare (EW) suite, including its Direct Infra-Red Counter-Measure (DIRCM) system, to a country in the Asia-Pacific region. The contracts will be performed over a period of 5 years.

On January 26, 2026, the Company announced, following the U.S. Government's publication from September 29, 2025 of an award to General Dynamics Ordnance and Tactical Systems (GD-OTS) of an order for the Bradley Fighting vehicle Active Protection System (APS), that Elbit Systems has been awarded by GD-OTS a $228 million contract to supply the Company's Iron Fist APS. The contract will be executed over a period of three years.

On February 17, 2026, the Company announced that it was awarded several contracts with a total value of approximately $435 million from an international customer. Under these contracts, the Company will supply a range of advanced systems, including land systems, and will also carry out a development program for an innovative defense solution. The contracts will be performed over a period of six years.

On February 18, 2026, the Company announced that it has been awarded contracts in an aggregate value of approximately $277 million by an international customer to supply 30 mm turrets and munitions. The contracts will be performed over a period of three years.

Dividend:

The Board of Directors declared a dividend of $1.00 per share. The dividend's record date is April 13, 2026. The dividend will be paid on April 27, 2026, after deduction of taxes at the source, at the rate of 16.8%. 

Conference Call:

The Company will be hosting a conference call today, Tuesday, March 17, 2026, at 10:00 a.m. Eastern Time. On the call, management will review and discuss the results and will be available to answer questions.

To participate, please call one of the teleconferencing numbers that follow. If you are unable to connect using the toll-free numbers, please try the international dial-in number.

US Dial-in Number: 1-866-744-5399
Canada Dial-in Number: 1-866-485-2399
Israel Dial-in Number: 03-918- 0644
International Dial-in Number: 972-3- 918- 0644
at 10:00am Eastern Time; 7:00am Pacific Time; 4:00pm Israel Time

The conference call will also be broadcast live on Elbit Systems' website at https://www.elbitsystems.com. An online replay will be available from 24 hours after the call ends.

Alternatively, for two days following the call, investors will be able to dial a replay number to listen to the call. The dial-in numbers are: 1-888-782-4291 (US and Canada) or +972-3-925-5900 (Israel and International).

Investor conference

Starting at 10:00 am Israel time (4:00 am Eastern Time) Tuesday, March 17, 2026, Elbit Systems will host an investor conference in Israel. The event will be streamed live in Hebrew. A recording of the event will be available shortly after the event concludes. The live webcast and recording will be available in the Investor Relations section of Elbit Systems' website at http://www.elbitsystems.com. 

Investors that wish to ask questions related to topics discussed at the investor conference are welcome to present their questions during the Q&A part of the financial results conference call.

Annual Report

The Company's Annual Report on Form 20-F (including its financial statements for the fiscal year ended December 31, 2025) will be filed on March 17, 2026.

About Elbit Systems

Elbit Systems is a leading global defense technology company, delivering advanced solutions for a secure and safer world. Elbit Systems develops, manufactures, integrates and sustains a range of next-generation solutions across multiple domains.

Driven by its agile, collaborative culture, and leveraging Israel's technology ecosystem, Elbit Systems enables customers to address rapidly evolving battlefield challenges and overcome threats.

Elbit Systems employs over 20,000 people in dozens of countries across five continents. The Company reported $7,938.6 million in revenues for the year ended December 31, 2025 and an order backlog of $28.1 billion as of such date.

For additional information, visit: https://elbitsystems.com/, follow us on X or visit our official Facebook, YouTube and LinkedIn channels.

Attachments:

Consolidated balance sheets
Consolidated statements of income
Consolidated statements of cash flows
Consolidated revenue distribution by geographical regions and by segments
Consolidated operating income by segments

Company Contact:

Dr. Yaacov (Kobi) Kagan, EVP & Chief Financial Officer
Tel: +972-77-2946663 [email protected] 

Daniella Finn, VP, Investor Relations
Tel: +972-77-2948984 [email protected] 

Dalia Bodinger, VP, Communications & Brand
Tel: +972-77-2947602 [email protected]

This press release may contain forward–looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Israeli Securities Law, 1968) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current facts. Forward-looking statements are based on management's current expectations, estimates, projections and assumptions about future events. Forward–looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions about the Company, which are difficult to predict, including projections of the Company's future financial results, its anticipated growth strategies and anticipated trends in its business. Therefore, actual future results, performance and trends may differ materially from these forward–looking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States among others, including the duration and scope of the war in Israel, and the potential impact on our operations; changes in global health and macro-economic conditions; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; changes in the competitive environment; and the outcome of legal and/or regulatory proceedings. The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission. All forward–looking statements speak only as of the date of this release.

Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company does not undertake to update its forward-looking statements.

Elbit Systems Ltd., its logo, brand, product, service and process names appearing in this Press Release are the trademarks or service marks of Elbit Systems Ltd. or its affiliated companies. All other brand, product, service and process names appearing are the trademarks of their respective holders. Reference to or use of a product, service or process other than those of Elbit Systems Ltd. does not imply recommendation, approval, affiliation or sponsorship of that product, service or process by Elbit Systems Ltd. Nothing contained herein shall be construed as conferring by implication, estoppel or otherwise any license or right under any patent, copyright, trademark or other intellectual property right of Elbit Systems Ltd. or any third party, except as expressly granted herein.

(FINANCIAL TABLES TO FOLLOW)

ELBIT SYSTEMS LTD.

CONSOLIDATED BALANCE SHEETS

(In thousands of US Dollar)

As of
December 31, 2025

As of
December 31, 2024

Assets

Cash and cash equivalents

$                  635,141

$                  265,351

Short-term bank deposits

180,604

1,330

Trade and unbilled receivables and contract assets, net

3,332,249

2,942,886

Other receivables and prepaid expenses

457,385

371,918

Inventories, net

3,129,756

2,773,696

Total current assets

7,735,135

6,355,181

Investments in affiliated and other companies

126,900

126,007

Long-term trade and unbilled receivables and contract assets

719,078

516,299

Long-term bank deposits and other receivables

51,601

67,510

Deferred income taxes, net

86,679

34,064

Severance pay fund

222,555

223,167

Total

1,206,813

967,047

Operating lease right of use assets

515,620

527,075

Property, plant and equipment, net

1,382,120

1,276,948

Goodwill and other intangible assets, net

1,821,830

1,845,345

Total assets

$             12,661,518

$             10,971,596

Liabilities and Equity

Short-term credit and loans

$                     50,532

$                   450,856

Current maturities of long-term loans and Series B, C and D Notes

83,452

74,561

Operating lease liabilities

98,464

84,912

Trade payables

1,511,671

1,343,816

Other payables and accrued expenses

1,549,139

1,207,717

Contract liabilities

2,683,180

2,149,306

Total

5,976,438

5,311,168

Long-term loans, net of current maturities

18,000

27,395

Series B, C and D Notes, net of current maturities

237,625

278,529

Employee benefit liabilities

487,760

454,334

Deferred income taxes and tax liabilities, net

137,662

73,916

Contract liabilities

934,256

816,796

Operating lease liabilities

476,737

454,057

Other long-term liabilities

263,067

274,421

Total

2,555,107

2,379,448

Elbit Systems Ltd.'s equity

4,129,598

3,277,540

Non-controlling interests

375

3,440

Total equity

4,129,973

3,280,980

Total liabilities and equity

$             12,661,518

$             10,971,596

ELBIT SYSTEMS LTD.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands of US Dollars, except per share data)

Year ended
December 31,

2025

Year ended
December 31,
2024

Three months
ended
December 31,
2025

Three months
ended
December 31,
2024

Revenues

$    7,938,627

$    6,827,871

$    2,148,559

$    1,930,216

Cost of revenues

6,003,374

5,186,051

1,618,765

1,465,015

Gross profit

1,935,253

1,641,820

529,794

465,201

Operating expenses:

Research and development, net

517,142

466,402

144,095

131,192

Marketing and selling, net

399,437

375,358

116,071

107,214

General and administrative, net

347,250

311,007

77,163

85,399

Total operating expenses

1,263,829

1,152,767

337,329

323,805

Operating income

671,424

489,053

192,465

141,396

Financial expenses, net

(138,618)

(151,125)

(34,031)

(45,906)

Other income (expense), net

29,109

3,818

24,152

(6,452)

Income before income taxes

561,915

341,746

182,586

89,038

Taxes on income

(55,539)

(39,058)

(21,012)

(3,368)

Income after taxes on income

506,376

302,688

161,574

85,670

Equity in net earnings of affiliated companies

29,243

19,176

6,978

4,551

Net income

$       535,619

$       321,864

$       168,552

$         90,221

Less: net income attributable to non-controlling interests

(1,280)

(726)

(391)

(228)

Net income attributable to Elbit Systems Ltd.'s shareholders

$       534,339

$       321,138

$       168,161

$         89,993

Earnings per share attributable to Elbit Systems Ltd.'s shareholders:

Basic net earnings per share

$           11.69

$              7.22

$              3.63

$              2.02

Diluted net earnings per share

$           11.39

$              7.18

$              3.52

$              2.00

Weighted average number of shares used in computation of:

Basic earnings per share

45,710

44,480

46,386

44,505

Diluted earnings per share

46,918

44,709

47,759

44,937

ELBIT SYSTEMS LTD.

CONSOLIDATED STATEMENTS OF CASH FLOW

(In thousands of US Dollars)

Year ended
December 31,
2025

Year ended
December 31,
2024

CASH FLOWS FROM OPERATING ACTIVITIES

Net income

$         535,619

$         321,864

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

Depreciation and amortization

171,434

158,391

Stock-based compensation

26,391

15,760

Amortization of Series B, C and D related issuance costs, net

394

493

Deferred income taxes and reserve, net

(14,687)

1,649

Gain on sale of property, plant and equipment

2,893

(596)

Gain (loss) from sale of investments and revaluation of investments held under fair value method

(4,518)

18,136

Equity in net earnings of affiliated companies, net of dividend received (*)

(10,190)

(8,213)

Changes in operating assets and liabilities, net of amounts acquired:

Increase in short and long-term trade receivables and contract assets and prepaid expenses

(659,951)

(473,926)

Increase in inventories, net

(357,926)

(480,309)

Increase in trade payables, other payables and accrued expenses

463,913

65,663

Severance, pension and termination indemnities, net

(26,328)

(40,159)

Increase in contract liabilities

651,334

955,857

Net cash provided by operating activities

778,378

534,610

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment and other assets, net of investment grants and evacuation grants

(225,568)

(215,051)

Proceeds from sale of a subsidiary

400

7,376

Investments in affiliated companies and other companies, net

(2,288)

(3,603)

Proceeds from sale of property, plant and equipment

1,133

4,107

Proceeds from sale of investments

14,600

18,594

Proceeds from sale of (investment in) long-term deposits, net

(31)

(180)

Proceeds from (investment in) short-term deposits, net

(178,962)

9,923

Net cash provided used in investing activities

(390,716)

(178,834)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issuance of shares and exercise of options

573,064

26

Issuance (repayment) of commercial paper, net

(301,591)

36,380

Repayment of long-term loans

(11,423)

(11,320)

Repayment of Series B, C and D Notes

(67,496)

(61,862)

Dividends paid

(111,693)

(88,958)

Change in short-term bank credit and loans, net

(98,733)

(162,120)

Net cash used in financing activities

(17,872)

(287,854)

Net increase in cash and cash equivalents

369,790

67,922

Cash and cash equivalents at the beginning of the period

$         265,351

$         197,429

Cash and cash equivalents at the end of the period

$         635,141

$         265,351

(*) Dividend received from affiliated companies

$           19,053

$          10,963

ELBIT SYSTEMS LTD.

DISTRIBUTION OF REVENUES

(In millions of US Dollars)

Consolidated revenues by geographical regions:

Year ended
December 31,
2025

%

Year ended
December 31,
2024

%

Three months
ended
December 31,
2025

%

Three months 
ended
December 31,
2024

%

Israel

$          2,556.4

32.2

$           1,988.0

29.1

$             635.2

29.6

$              592.9

30.7

North America

1,659.3

20.9

1,520.3

22.3

455.0

21.2

438.0

22.7

Europe

2,139.5

27.0

1,820.9

26.7

583.0

27.1

533.7

27.6

Asia-Pacific

1,243.7

15.7

1,132.7

16.6

372.4

17.3

274.3

14.2

Latin America

99.0

1.2

150.0

2.2

27.6

1.3

38.2

2.0

Other countries

240.7

3.0

216.0

3.1

75.4

3.5

53.1

2.8

Total revenues

$          7,938.6

100.0

$           6,827.9

100.0

$          2,148.6

100.0

$           1,930.2

100.0

Consolidated revenues by segments:

Year ended
December 31,
2025

Year ended
December 31,
2024

Three months ended
December 31,
2025

Three months ended
December 31,
2024

Aerospace

External customers

$            1,820.9

$            1,780.5

$              473.0

$              564.3

Intersegment revenue

246.1

255.8

75.2

76.7

Total

2,067.0

2,036.3

548.2

641.0

C4I and Cyber

External customers

$                866.2

$                750.6

$              223.3

$              192.2

Intersegment revenue

64.7

49.2

17.5

9.5

Total

930.9

799.8

240.8

201.7

ISTAR and EW

External customers

$            1,323.5

$            1,118.6

$              416.0

$              285.8

Intersegment revenue

202.3

199.4

40.6

43.4

Total

1,525.8

1,318.0

456.6

329.2

Land

External customers

$            2,250.3

$            1,605.1

$              570.1

$              461.1

Intersegment revenue

68.4

74.3

11.0

13.7

Total

2,318.7

1,679.4

581.1

474.8

ESA

External customers

$            1,677.7

$            1,573.1

$              466.2

$              426.8

Intersegment revenue

16.4

12.6

6.9

5.3

Total

1,694.1

1,585.7

473.1

432.1

Revenues

Total revenues (external customers and intersegment) for reportable segments

8,536.5

7,419.2

2,299.8

2,078.8

Less - intersegment revenue

(597.9)

(591.3)

(151.2)

(148.6)

Total revenues

$            7,938.6

$            6,827.9

$           2,148.6

$           1,930.2

ELBIT SYSTEMS LTD.

OPERATING INCOME BY SEGMENTS

(In millions of US Dollars)

Operating income by segments:

Year ended
December 31, 2025

Year ended
December 31, 2024

Aerospace

$                     151.9

$                     149.1

C4I and Cyber

55.9

62.0

ISTAR and EW

129.1

96.1

Land 

263.7

150.7

ESA 

122.8

56.2

Segment operating income

723.4

514.1

Unallocated corporate expense, net

(52.0)

(25.0)

Operating income

$                     671.4

$                     489.1

* Non-GAAP financial data:

The following non-GAAP financial data, including adjusted gross profit, adjusted operating income, adjusted net income, and adjusted diluted earnings per share, is presented to enable investors to have additional information on our business performance as well as a further basis for periodical comparisons and trends relating to our financial results. We believe such data provides useful information to investors and analysts by facilitating more meaningful comparisons of our financial results over time. The non-GAAP adjustments exclude amortization expenses of intangible assets related to acquisitions that occurred mainly in prior periods, capital gains related primarily to the sale of investments, restructuring activities, non-indemnified costs in respect to special circumstances, non-cash stock based compensation expenses, revaluations of investments in affiliated companies, non-operating foreign exchange gains or losses, one-time tax expenses, and the effect of tax on each of these items. Once the special circumstances in Israel ends, the company will discontinue the reconciliation of non–indemnified costs. We present these non-GAAP financial measures because management believes they supplement and/or enhance management's, analysts' and investors' overall understanding of the Company's underlying financial performance and trends and facilitate comparisons among current, past, and future periods.

Specifically, management uses adjusted gross profit, adjusted operating income, and adjusted net income attributable to the Company's shareholders to measure the ongoing gross profit, operating profit and net income performance of the Company because the measure adjusts for more significant non-recurring items, amortization expenses of intangible assets relating to prior acquisitions, and non-cash expense which can fluctuate year to year.

We believe adjusted gross profit, adjusted operating income, and adjusted net income attributable to the Company's shareholders are useful to existing shareholders, potential shareholders and other users of our financial information because they provide measures of the Company's ongoing performance that enable these users to perform trend analysis using comparable data.

Management uses adjusted diluted earnings per share to evaluate further adjusted net income attributable to the Company's shareholders while considering changes in the number of diluted shares over comparable periods.

We believe adjusted diluted earnings per share is useful to existing shareholders, potential shareholders and other users of our financial information because it also enables these users to evaluate adjusted net income attributable to Company's shareholders on a per-share basis.

The non-GAAP measures used by the Company are not based on any comprehensive set of accounting rules or principles. We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations, as determined in accordance with GAAP, and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures.

Investors are cautioned that, unlike financial measures prepared in accordance with GAAP, non-GAAP measures may not be comparable with the calculation of similar measures for other companies. They should consider non-GAAP financial measures in addition to, and not as replacements for or superior to, measures of financial performance prepared in accordance with GAAP.

Reconciliation of GAAP to Non-GAAP (Unaudited) Supplemental Financial Data:

(US Dollars in millions, except for per share amounts)

Three months
ended
December 31,
2025

Three months
ended
December 31,
2024

Year ended
December 31,
2025

Year ended
December 31,
2024

GAAP gross profit

$         529.8

$         465.2

$       1,935.3

$       1,641.8

Adjustments:

Amortization of purchased intangible assets(*)

4.1

4.1

16.2

18.9

Stock-based compensation

1.3

0.9

4.0

2.4

Non-indemnified costs in respect to special circumstances

1.1

1.9

6.3

7.9

Non-GAAP gross profit

$         536.3

$         472.1

$       1,961.8

$       1,671.0

Percent of revenues

25.0 %

24.5 %

24.7 %

24.5 %

GAAP operating income

$         192.5

$         141.4

$           671.4

$           489.1

Adjustments:

Amortization of purchased intangible assets(*)

7.8

7.7

31.0

34.2

Stock-based compensation

8.9

5.7

26.4

15.8

Non-indemnified costs in respect to special circumstances

1.6

2.7

9.0

11.3

Non-GAAP operating income

$         210.8

$         157.5

$           737.8

$           550.4

Percent of revenues

9.8 %

8.2 %

9.3 %

8.1 %

GAAP net income attributable to Elbit Systems' shareholders

$         168.2

$           90.0

$           534.3

$           321.1

Adjustments:

Amortization of purchased intangible assets(*)

7.8

7.7

31.0

34.2

Stock-based compensation

8.9

5.7

26.4

15.8

Capital gain

(13.7)

—

(13.7)

(2.0)

Revaluation of investments measured under fair value method

(11.8)

12.0

(4.5)

19.4

Non-operating foreign exchange (gains) losses

8.1

3.6

18.5

(0.6)

Non-indemnified costs in respect to special circumstances

1.6

2.7

9.0

11.3

Tax effect and other tax items, net

0.8

(2.4)

(3.0)

(7.7)

Non-GAAP net income attributable to Elbit Systems' shareholders

$         169.9

$         119.3

$           598.0

$           391.5

Percent of revenues

7.9 %

6.2 %

7.5 %

5.7 %

GAAP diluted net EPS

$           3.52

$           2.00

$           11.39

$             7.18

Adjustments, net

0.04

0.66

1.36

1.58

Non-GAAP diluted net EPS

$           3.56

$           2.66

$           12.75

$             8.76

(*)  While amortization of acquired intangible assets is excluded from the measures, the revenue of the acquired companies
is reflected in the measures and the acquired assets contribute to revenue generation.

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SOURCE Elbit Systems Ltd.