Market Signal Briefing

Diamondback Energy is rated a Buy, supported by robust Q4 results, aggressive Permian expansion, and resilient cash flow despite commodity price weakness. FANG leads peers in cost efficiency, reducing Midland Basin drilling costs to $550–$580 per lateral foot, underpinned by in-house infrastructure and operational innovation. Recent transformative acquisitions, notably Endeavor Energy and Double Eagle IV, have doubled FANG's footprint and unlocked substantial cash flow and operational synergies.

Amplify CEF High Income ETF offers diversified exposure to high-yield closed-end funds with a 50/50 equities/bonds allocation and no top-level leverage. Despite a 12% yield, YYY's long-term annualized return is under 6%, raising concerns about fee drag and real, after-inflation returns. Recent 3-year performance exceeded 12.5% annualized, but peer funds like CEFS and FOF have delivered stronger risk-adjusted results.

Agilent Technologies, Inc. (A) Q1 2026 Earnings Call Transcript

Omni Bridgeway Limited (IMMFF) Q2 2026 Earnings Call Transcript

Jensen Huang, president/CEO of Nvidia, speaks during a Siemens keynote at CES 2026, an annual consumer electronics trade show, in Las Vegas, Nevada, U.S. January 6, 2026. REUTERS/Steve... Purchase Licensing Rights, opens new tab Read more

SummaryCompaniesCPUs making a comeback as AI companies shift to from training models to deploying 'agents'Nvidia sealed recent deal with Meta to supply standalone CPUsCPUs have traditionally been the domain of Intel and AMDSAN FRANCISCO, Feb 25 (Reuters) - Nvidia (NVDA.O), opens new tab may have made its immense fortune on the back of specialized graphics processing units (GPUs) used to power artificial intelligence servers, but CEO Jensen Huang is increasingly professing his love for the more generalist CPU.

The CPU, or central processing unit, was for decades traditionally viewed as the main brain of a computer - a product most associated with Intel (INTC.O), opens new tab or sometimes Advanced Micro Devices (AMD.O), opens new tab.

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Huang is fond of saying that where once 90% of computing used to happen on CPUs and 10% on chips like his, the ratio had flipped in recent years.

But the CPU is now making a comeback - increasingly seen as an equivalent if not better option as AI companies shift from training their models to deploying them - a shift that Nvidia plans to be a big part of.

"We love CPUs as well as GPUs," Huang said on a call with analysts on Wednesday for the company's fourth-quarter results.

He assured them that Nvidia was not only ready for the CPU's return to the spotlight, but also that Nvidia's own CPU offerings for data centers, first released in 2023, would outcompete rivals.

Last month, at the Consumer Electronics Show in Las Vegas in January, Huang also said the number of high-performance Nvidia CPUs being used in data centers would explode and that he wouldn't be surprised "if Nvidia becomes one of the largest CPU makers in the world."

THE CPU VERSUS THE GPUCPUs and GPUs have served different computing tasks for decades. CPUs are generalist chips designed to handle any mathematical task a software programmer might throw at the chip at reasonable speed, given the variety of work.

GPUs, by contrast, specialize in carrying out a simpler set of mathematical tasks, but doing those simple calculations in parallel thousands of times at once.

In video games that meant calculating the value of thousands of pixels on a screen many times a second, and in AI work that means multiplying and adding large matrices of numbers that developers use to represent real-world data such as words and images.

AI companies are increasingly deploying "agents" that can independently carry out tasks such as writing code, sifting through documents and writing research reports - and that sort of computing "is happening more and more, and sometimes primarily, on the CPU," said Ben Bajarin, an analyst at Creative Strategies.

Nvidia's current flagship AI server - called the NVL72 - contains 36 of its CPUs and 72 of its GPUs. Bajarin thinks that could change to a 1 to 1 ratio for so-called agentic work or even that the GPU could be skipped altogether.

NVIDIA OUT TO PROVE A POINTUnderscoring its CPU ambitions, Nvidia recently announced a deal with Meta Platforms (META.O), opens new tab that will see the Facebook owner use large volumes of its Grace and Vera CPU chips on a standalone basis. That's a relatively new development compared to Nvidia's current AI servers where each CPU is accompanied by multiple GPUs.

Though it's not that Meta has switched vendors for CPUs - it's just securing more suppliers. Days later, AMD also announced a large deal with Meta that also included its CPUs, which Meta has been buying for years.

On the call with analysts, Huang argued that Nvidia had taken a fundamentally different approach to CPUs.

He outlined why Nvidia had minimized an approach to breaking up chips into smaller parts that Intel and AMD have used, saying the Nvidia CPU was able to carry out many simple tasks in a row with good access to a lot of computer memory.

"It is designed to be focused on very high data processing capabilities," Huang said on the call. "And the reason for that is because most of the computing problems that we're interested in are data driven - artificial intelligence being one."

Dave Altavilla, principal analyst at HotTech Vision and Analysis, said Nvidia is aiming to prove that the CPU type once supplied primarily by Intel "is no longer the assumed default foundation of modern compute infrastructure. Instead, it becomes just one architectural option among several."

Huang said that Nvidia would have more to disclose about its CPUs at the company's annual developer conference in Silicon Valley next month.

Reporting by Stephen Nellis in San Francisco; Editing by Peter Henderson and Edwina Gibbs

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

Thomas Russell
Executive Director

All right. Tony, we're ready.

Tony Sheehan
Chief Executive Officer

Thanks, Tom. Good morning, and welcome to the H1 FY '26 update for Change Financial. My name is Tony Sheehan, CEO of Change, and I'm joined by Tom Russell, Executive Director.

Similar to our usual webinar format, Tom and I will run through a presentation and then take Q&A at the end. If you do have any questions, please submit them through the chat function on this webinar.

Okay. Just a little bit briefly about Change Financial. So, Change Financial provides innovative and scalable payment solutions for over 150 clients across more than 40 countries. We are a B2B business with 2 core products. The first being Vertexon, which is our Payments as a Service offering, which provides card issuing, card management and transaction processing. Vertexon supports prepaid, debit and credit card issuing, and there are 2 main models under Vertexon, the first one being processing only. Under this model, we provide the technology, which is a card management system to clients to run their card programs. The clients hold the necessary scheme and regulatory licenses to issue cards. So processing only is available globally and supports all major schemes. And we have clients using Vertexon in Southeast Asia and Latin America, including 2 of the largest banks in the Philippines running over 45 million cards on the platform.

The second model is processing and issuing. This is only available in Australia and New Zealand. And under this model, clients utilize Vertexon for processing capabilities and leverage our regulatory and scheme licenses and issuing capabilities. So under this model changes the card issuer

Operator

Thank you for standing by, and welcome to the Cromwell Property Group Half Year Results. [Operator Instructions]

I would now like to hand the conference over to Mr. Jonathan Callaghan, Chief Executive Officer. Please go ahead.

Jonathan Callaghan
CEO, MD & Director

Good morning to everyone, and thank you for joining us today for Cromwell Property Group's results for the half year ending 31 December, 2025.

I open today's presentation by acknowledging the traditional custodians of the land from where this call is being hosted, the Gadigal people of the Eora Nation, and pay our respects to their elders past and present.

On Slide 5, we outlined some highlights over the 6-month period. Pleasingly, we have been able to deliver growth in key areas. Importantly, operating profit increased 1.5% on the prior corresponding period to $55.9 million. Additionally, since June last year, we've been able to grow assets under management by 13.6% to $5 billion.

Cromwell's investment portfolio, which continues to perform strongly with sector-leading occupancy of 97.2%, recorded a valuation uplift of $72 million. This valuation increase has driven an increase in the group's NTA, up 3.6% to $0.58 per security.

Our balance sheet remains in good shape. At 30.2% gearing, gearing remains at the lower end of our stated gearing range of 30% to 40%, and we have ample liquidity of $418 million to fund growth opportunities and capital expenditure. Our interest rate hedging profile is robust with 71% of our net debt being hedged at period end.

The iShares Dow Jones U.S. ETF tracks the Dow Jones U.S. Index, offering exposure to close to 1,000 equities. Despite being much more diversified than IVV, IYY does not offer anything appealing in terms of both annualized and risk-adjusted returns. Regarding sector and factor exposures, IYY is rather close to IVV, though with slightly lower allocation to IT and marginally better valuation characteristics.

Veracyte, Inc. (VCYT) Q4 2025 Earnings Call Transcript

Ethos Technologies Inc. (LIFE) Q3 2026 Earnings Call Transcript

By PYMNTS  |  February 25, 2026

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Sezzle is accelerating its super app plans in 2026 after seeing growing engagement with its existing offerings in 2025, the company said in a Wednesday (Feb. 25) press release.

During the fourth quarter, the company’s digital payment platform saw its gross merchandise value (GMV) increase by 35.3% year over year to reach a new quarterly high of $1.2 billion, according to the release.

The company attributed this growth in part to its focus on higher lifetime value (LTV) subscribers, targeted subscriber marketing and continued adoption of new shopping features.

“2025 brought a shifting landscape for BNPL and for FinTech more broadly,” Sezzle Executive Chairman and CEO Charlie Youakim said Wednesday during the company’s earnings conference call.

“We continued to see the sector mature within the broader U.S. financial ecosystem, as BNPL became more embedded in everyday commerce and more firmly established within the financial ecosystem.”

Sezzle also added 134,000 new Monthly On-Demand and Subscribers during the quarter, bringing the total to 918,000, per the release. In addition, its number of monthly app sessions increased 51% year over year.

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The company said this growing engagement was driven by its continued addition of enhancements to its app. Those added in 2025 include Price Comparison, Browser Extension, Express Checkout, Earn Tab, Wishlist, Products Tab and Sezzle Balance.

Sezzle’s embedded financial education tool MoneyIQ delivered more than 1 million lessons during its first year, according to the release.

This year, the company plans to continue building its app into an all-in-one app by integrating “shopping, flexible payments and essential services,” the release said.

The product roadmap for 2026 includes an artificial intelligence-powered shopping assistant, the Sezzle Mobile wireless service, enhanced long-term lending that will include higher credit limits and broader merchant acceptance, and a receipt scanning and rewards feature that will reward spending activity, per the release. The company announced Feb. 18 that it opened a waitlist for Sezzle Mobile mobile phone plan.

The Sezzle app’s expanding range of financial tools help grow consumer LTV and drive consumer acquisition, while its shopping features engage and retain customers, the firm said in an earnings presentation released Wednesday.

“Importantly, these features extend our value proposition beyond payments and move us closer to being an everyday financial companion for our consumers,” Youakim said during the call.

Later, after outlining features that will help consumers find products, the best price and the best payment terms, Youakim said: “We feel it’s a super app in the making for a value-focused consumer. We want our target audience to have the app installed and use us daily.”

The software sell-off has set up some good buying opportunities.

Investors came into 2026 worried about an AI bubble. Indeed, a bubble is bursting, but it's not in AI stocks.

Instead, software stocks have dived this year with the iShares Expanded Tech-Software Sector ETF (IGV +3.11%), which counts Microsoft, Palantir, and Salesforce among its biggest holdings, down 24% year-to-date through Feb. 25 as fears of AI disruption have sparked a wave of selling in high-priced software-as-a-service (SaaS) stocks.

While some of the selling seems justified given the lofty valuations in the sector and the rapid advancement of AI tools like Claude Cowork, some SaaS stocks seem oversold. Keep reading to see why Figma (FIG +13.89%) and Axon Enterprise (AXON +17.63%) look like buys, especially after their recent earnings reports.

Image source: Getty Images.

1. Figma (down 74%) Figma went public seven months ago, and the stock has been on a wild ride since then. The design software stock surged out of the gate, but has faded since then, sinking as low as $20 a share, or a market cap of just $10 billion, half of what Adobe agreed to acquire it for in 2022 before the deal was blocked by regulators.

After a rebound over the last week, the stock is still down 74% from its closing-day peak shortly after it went public.

However, the fears around Figma seem overblown as the company is both growing quickly and has demonstrated generally accepted accounting principles (GAAP) profitability. The company has also launched a number of AI products and has moved aggressively in AI through both acquisitions and native products.

In fact, the company just posted accelerating revenue growth in its fourth quarter as the top line jumped 40% to $303.8 million, which included a record for net new revenue and 136% net dollar retention rate, showing revenue from existing customers rose 36% over the last year.

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AI products like Figma Make are experiencing strong growth with weekly active users up 70% quarter-over-quarter, and Figma is working closely with Anthropic, showing that AI start-ups are likely to be more of a partner than a competitor. For example, it launched the Figma Model Context Protocol (MCP) app in Claude. It also expanded its Figma app in ChatGPT and released a new Claude Code to Figma feature.

Figma called for first-quarter revenue growth of 38% and sees adjusted operating income of $100 million-$110 million for the year.

Figma stock is still expensive, but it has a lot of long-term growth potential as it has rapidly gained market share on Adobe in recent years. With a savvy AI strategy, Figma looks poised to continue to deliver strong growth.

2. Axon Enterprise (down 40%) Axon Enterprise has been a longtime winner on the stock market, and it's established itself as the clear leader in its niche.

Axon is a law enforcement technology company known for making TASER electrical weapons, body cameras, and a suite of software programs to help law enforcement agencies manage records, evidence, prosecutions, and related matters.

The TASER maker is also coming off a strong earnings report with revenue up 39% to $797 million, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $206 million, up 46%.

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In addition to that impressive growth rate, Axon is also investing aggressively in AI. It introduced Draft One, a generative AI tool that generates first drafts of police reports from footage from Axon body and dashboard cameras.

It also launched an automatic license plate recognition (ALPR) product, expanding its vehicle intelligence program, and it's using AI to unify data across platforms, including in its emergency response program.

Axon is pushing back on the AI disruption narrative not only with its own AI products, but also with a forecast to deliver $8 billion in revenue in 2028, implying annual growth of about 30% through the next three years.

Even after its recent sell-off, Axon isn't cheap, but the company has built a strong set of competitive advantages and looks poised to deliver rapid growth for years to come.

SAN FRANCISCO--(BUSINESS WIRE)--Vir Biotechnology, Inc. (Nasdaq: VIR), a clinical-stage biopharmaceutical company focused on powering the immune system to transform lives by discovering and developing medicines for serious infectious diseases and cancer, today announced the pricing of its underwritten public offering of 17,647,058 shares of its common stock at a price to the public of $8.50 per share. The gross proceeds to Vir Biotechnology from the offering are expected to be $150 million, before deducting underwriting discounts and commissions and estimated offering expenses. In addition, Vir Biotechnology has granted the underwriters a 30-day option to purchase up to an additional 2,647,058 shares of its common stock at the public offering price, less underwriting discounts and commissions. All of the shares in the offering are being sold by Vir Biotechnology. Closing of the offering is expected to occur on February 27, 2026, subject to customary closing conditions.

Goldman Sachs & Co. LLC, Leerink Partners, Evercore ISI and Barclays are acting as book-running managers for the offering.

The shares described above are being offered pursuant to an automatically effective shelf registration statement on Form S-3 that was filed with the U.S. Securities and Exchange Commission, or the SEC, on November 3, 2023. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering was filed with the SEC on February 24, 2026. The final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and may be obtained, when available, by contacting: Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York, NY 10282, or by telephone at (866) 471-2526, or by email at [email protected]; Leerink Partners LLC, Attn: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, or by telephone at (800) 808-7525, ext. 6105, or by email at [email protected]; Evercore Group L.L.C., Attn: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, NY 10055, or by telephone at (888) 474-0200, or by email at [email protected]; Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by telephone at (888) 603-5847, or by email at [email protected]; or by accessing the SEC’s website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Vir Biotechnology, Inc.

Vir Biotechnology, Inc. is a clinical-stage biopharmaceutical company focused on powering the immune system to transform lives by discovering and developing medicines for serious infectious diseases and cancer. Its clinical-stage portfolio includes programs for chronic hepatitis delta and multiple PRO-XTEN® dual-masked T-cell engagers across validated targets in solid tumor indications. Vir Biotechnology also has a portfolio of preclinical programs across a range of infectious diseases and oncologic malignancies.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “should,” “could,” “may,” “might,” “will,” “plan,” “potential,” “aim,” “expect,” “anticipate,” “promising” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to, statements regarding the completion of the offering. Many factors may cause differences between current expectations and actual results, including, without limitation, risks and uncertainties related to the satisfaction of the customary closing conditions related to the offering. In light of these risks and uncertainties, the events or circumstances referred to in the forward-looking statements may not occur. The actual results may vary from the anticipated results, and the variations may be material. You are cautioned not to place undue reliance on these forward-looking statements, which are based on Vir Biotechnology’s available information, expectations and assumptions as of the date of this press release. Other factors that may cause Vir Biotechnology’s actual results to differ from those expressed or implied in the forward-looking statements in this press release are discussed in the section titled “Risk Factors” of Vir Biotechnology’s Annual Report on Form 10-K, filed with the SEC on February 23, 2026, and in the preliminary prospectus supplement relating to the offering. Except as required by law, Vir Biotechnology assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Vir Biotechnology has exclusive rights to the universal PRO-XTEN® masking platform for oncology and infectious disease. PRO-XTEN® is a trademark of Amunix Pharmaceuticals, Inc., a Sanofi company.

More News From Vir Biotechnology, Inc.

I am downgrading Broadcom heading into the Q1 FY26 print, as the poor sentiment in tech may lead investors to panic sell the stock on any negative development. Specifically, I am concerned about the 67% adjusted EBITDA margin guided for Q1, given the fact that memory chip prices jumped recently. I am unsure if management anticipated the full magnitude of the hike in memory prices in their adjusted EBITDA margin guidance. Sequentially, this guidance implies only a 1ppt drop.

SKY Network Television Limited (SYKWF) Q2 2026 Earnings Call Transcript

Fortune Brands is gaining market share and outperforming end markets despite macro headwinds, positioning itself well for medium-term recovery. FBIN faces near-term margin pressure from tariff-related costs and normalized compensation, but pricing actions and $35M cost savings initiatives should offset these headwinds. Management's FY26 guidance appears conservative, with potential for outperformance as cost savings materialize and market conditions stabilize.

BEIJING, Feb. 26, 2026 (GLOBE NEWSWIRE) -- InnoCare Pharma (HKEX: 09969), a leading biopharmaceutical company focusing on the treatment of cancer and autoimmune diseases, announced today key clinical development progress, including the completion of patient enrollment of multiple Phase III registrational trials.

The Company completed patient enrollment of a Phase III registrational clinical trial of BCL2 inhibitor mesutoclax (ICP-248) in combination with BTK inhibitor orelabrutinib for treatment-naïve chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL) patients.

Mesutoclax is a novel, highly selective oral BCL2 inhibitor. BCL2 is an important regulatory protein in the apoptosis pathway, and its abnormal expression is associated with the development of various hematologic malignancies. Mesutoclax exerts anti-tumor activity by selectively inhibiting BCL2 and restoring the normal apoptosis process in cancer cells. The fixed-duration treatment of mesutoclax in combination with orelabrutinib will provide deeper remission for treatment-naïve CLL/SLL patients without drug-resistant mutations, bringing hope of clinical cure to treatment-naïve CLL/SLL patients.

In addition, InnoCare also accelerated the clinical development of two novel TYK2 inhibitors. The company has completed patient enrollment in the Phase III registrational trial of soficitinib (ICP-332) for the moderate to severe atopic dermatitis (AD) and in the Phase III registrational trial of ICP-488 for the treatment of psoriasis recently.

These important milestones mark a crucial step forward in addressing the huge unmet needs in AD with soficitinib and in psoriasis with ICP-488.

Meanwhile, InnoCare has also completed patient enrollment in the Phase II clinical trial of soficitinib for the treatment of vitiligo.

Soficitinib is a potent and selective TYK2 inhibitor that is being developed for the treatment of various T-cell related autoimmune disorders. The current indications under development are strategically positioned within the vast dermatology market, including AD, vitiligo, prurigo nodularis, CSU, and psoriasis.

ICP-488 is an oral, potent, and selective TYK2 allosteric inhibitor. By binding to the JH2 domain, ICP-488 blocks the signal transduction pathways of IL-23, IL-12, type 1 IFN, and other inflammatory cytokines, thereby inhibiting the pathological processes of autoimmune and inflammatory diseases.

About InnoCare

InnoCare is a commercial stage biopharmaceutical company committed to discovering, developing, and commercializing first-in-class and/or best-in-class drugs for the treatment of cancers and autoimmune diseases with unmet medical needs in China and worldwide. InnoCare has branches in Beijing, Nanjing, Shanghai, Guangzhou, Hong Kong, and the United States.

InnoCare Forward-looking Statements
This report contains the disclosure of some forward-looking statements. Except for statements of facts, all other statements can be regarded as forward-looking statements, that is, about our or our management's intentions, plans, beliefs, or expectations that will or may occur in the future. Such statements are assumptions and estimates made by our management based on its experience and knowledge of historical trends, current conditions, expected future development and other related factors. This forward-looking statement does not guarantee future performance, and actual results, development and business decisions may not match the expectations of the forward-looking statement. Our forward-looking statements are also subject to a large number of risks and uncertainties, which may affect our short-term and long-term performance.

Karoon Energy Ltd (KRNGY) Q4 2025 Earnings Call February 25, 2026 7:01 PM EST

Company Participants

Carri Lockhart - CEO, MD & Director
Raymond Kenneth Church - Executive VP & CFO
Ann Diamant - Senior Vice President of Communications & Investor Relations

Conference Call Participants

Dale Koenders - Barrenjoey Markets Pty Limited, Research Division
Henry Meyer - Goldman Sachs Group, Inc., Research Division
Nik Burns - Jarden Limited, Research Division
Gordon Ramsay - RBC Capital Markets, Research Division

Presentation

Operator

Thank you for standing by, and welcome to the Karoon Energy Limited 2025 Full Year Results Briefing. [Operator Instructions] I would now like to hand the conference over to Ms. Carri Lockhart, CEO and Managing Director. Please go ahead.

Carri Lockhart
CEO, MD & Director

Thank you. Good morning, everyone, and thank you for joining our 2025 full year results webcast. My name is Carri Lockhart, CEO and Managing Director of Karoon. I have with me this morning, Ray Church, our CFO; and Ann Diamant, our SVP of Investor Relations.

Earlier this morning, we released our 2025 full year results to the market. This presentation should be read in conjunction with the ASX announcement, and I draw your attention to the disclaimers on Slide 2 and notes and definitions on Slide 3.

I will move directly to Slide 5, which provides an overview of 2025. We are pleased with Karoon's performance during 2025. We produced 10.3 million BOEs, which was nearly on par with last year despite well issues and natural decline. While our sale revenue and NPAT were lower in 2025, largely due to the softer oil prices, our low-cost, high-margin assets generated $231 million of operating cash flows, demonstrating the robustness of our business. These cash flows underpin the disciplined investment in our organic growth opportunities and healthy returns to shareholders.

HUNTSVILLE, Ala.--(BUSINESS WIRE)--ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) (“ADTRAN Holdings” “ADTRAN” or the “Company”) today announced its unaudited financial results for the fourth quarter ended December 31, 2025.

Revenue: $291.6 million, up 20.1% year-over-year. GAAP gross margin of 39.0%; Non-GAAP gross margin of 42.5%; up 213 and 122 basis points year-over-year, respectively. Operating margin: GAAP operating margin of 1.5%; non-GAAP operating margin of 6.4%. Net cash provided by operating activities of $42.2 million. GAAP diluted loss per share of $0.02; non-GAAP diluted earnings per share of $0.16. Cash and cash equivalents of $95.7 million. ADTRAN Holdings Chairman and Chief Executive Officer Tom Stanton stated, “We delivered a strong fourth quarter, with revenue above our outlook and growth across all three revenue categories. Performance reflected solid execution and sustained fiber investment across our core markets.”

Mr. Stanton added, “As we look at 2026, we see solid momentum with cloud and enterprise customers, strong broadband activity in the US and increasing high-risk vendor replacement initiatives in Europe. Our priorities remain focused on expanding operating margin, cash generation, and converting the customer opportunities we are seeing across our portfolio.”

Business outlook1

For the first quarter of 2026, the Company expects revenue to be within a range of $275.0 to $295.0 million. Non-GAAP operating margin is expected to be within a range of 4.0% to 8.0%.

1 Non-GAAP operating margin (which is calculated as non-GAAP operating income (loss) divided by revenue) is a non-GAAP financial measure. The Company has provided guidance for its first quarter 2026 non-GAAP operating margin. This measure excludes from the corresponding GAAP financial measure the effect of adjustments as described below. The Company has not provided a reconciliation of such non-GAAP guidance to guidance presented on a GAAP basis because it cannot predict and quantify without unreasonable effort all of the adjustments that may occur during the period due to the difficulty of predicting the timing and amounts of various items within a reasonable range. In particular, non-GAAP operating margin excludes certain items, such as acquisition related expenses, amortizations and adjustments, stock-based compensation expense, restructuring expenses, integration expenses, deferred compensation adjustments, professional fees and other expenses, and goodwill impairment, that the Company is unable to quantitatively predict. Depending on the materiality of these items, they could have a significant impact on the Company's GAAP financial results.

Conference call

The Company will hold a conference call to discuss its fourth quarter and full year 2025 results on Thursday, February 26, 2026, at 7:30 a.m. Central Time (2:30 p.m. Central European Time). The Company will webcast this conference call at the events and presentations section of ADTRAN Holdings, Inc. Investor Relations website at https://events.q4inc.com/attendee/203363753 approximately 10 minutes before the start of the call, or you may dial 1-888-330-2391 (Toll-Free US) or 1-240-789-2702, and use Conference ID 8936454.

An online replay of the Company’s conference call, as well as the transcript of the call, will be available on the Investor Relations site https://investors.adtran.com/shortly following the call and will remain available for at least 12 months. For more information, visit investors.adtran.com or email [email protected].

Upcoming conference schedule

March 10, 2026: Stifel 2026 One-on-One Conference – New York

About Adtran

ADTRAN Holdings, Inc. (NASDAQ: ADTN and FSE: QH9) is the parent company of Adtran, Inc., a leading global provider of open, disaggregated networking and communications solutions that enable voice, data, video and internet communications across any network infrastructure. From the cloud edge to the subscriber edge, Adtran empowers communications service providers around the world to manage and scale services that connect people, places and things. Adtran solutions are used by service providers, private enterprises, government organizations and millions of individual users worldwide. ADTRAN Holdings, Inc. is also the majority shareholder of Adtran Networks SE, formerly ADVA Optical Networking SE (“Adtran Networks”). Find more at Adtran.com, LinkedIn and X.

Cautionary note regarding forward-looking statements

Statements contained in this press release and the accompanying earnings call which are not historical facts, such as those relating to future market conditions, future priorities, customer demand, (including with respect to future fiber investments, upgrade activity in the U.S. and Europe, and future customer opportunities), and ADTRAN Holdings’ strategy, outlook and financial guidance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can also generally be identified by the use of words such as “believe,” “expect,” “intend,” “estimate,” “anticipate,” “will,” “may,” “could,” “look forward,” and similar expressions. In addition, ADTRAN Holdings, through its senior management, may from time to time make forward-looking public statements concerning the matters described herein. All such projections and other forward-looking information speak only as of the date hereof, and ADTRAN Holdings undertakes no duty to publicly update or revise such forward-looking information, whether as a result of new information, future events, or otherwise, except to the extent as may be required by law. All such forward-looking statements are necessarily estimates and reflect management’s best judgment based upon current information. Actual events or results may differ materially from those anticipated in these forward-looking statements as a result of a variety of factors. While it is impossible to identify all such factors, factors which have caused and may in the future cause actual events or results to differ materially from those estimated by ADTRAN Holdings include, but are not limited to: (i) risks and uncertainties relating to our ability to remain in compliance with the covenants set forth in and satisfy the payment obligations under our credit agreement and convertible notes, to satisfy our payment obligations to Adtran Networks’ minority shareholders under the Domination and Profit and Loss Transfer Agreement between us and Adtran Networks (the “DPLTA”), and to make payments to Adtran Networks in order to absorb its annual net loss pursuant to the DPLTA; (ii) the risk of fluctuations in revenue due to lengthy sales and approval processes required by major and other service providers for new products, as well as shifting customer spending patterns; (iii) risks and uncertainties related to our inventory practices and ability to match customer demand; (iv) risks and uncertainties relating to our level of indebtedness and our ability to generate cash; (v) risks and uncertainties relating to ongoing material weaknesses in our internal control over financial reporting; (vi) risks posed by changes in general economic conditions and monetary, fiscal and trade policies, including tariffs; (vii) risks posed by potential breaches of information systems and cyber-attacks; (viii) the risk that we may not be able to effectively compete, including through product improvements and development; and (ix) the other risks set forth in our public filings made with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K for the year ended December 31, 2024, as amended, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2025, June 30, 2025, and September 30, 2025, and our Annual Reporting on Form 10-K for the year ended December 31, 2025 to be filed with the SEC.

Explanation of use of non-GAAP financial measures

Set forth in the tables below under the heading “Supplemental Information” are reconciliations of gross profit, gross margin, operating expenses, operating income (loss), operating margin, other expense, net loss inclusive of the non-controlling interest, net loss attributable to the Company, and loss per share - basic and diluted, attributable to the Company, and net cash provided by operating activities, in each case as reported based on generally accepted accounting principles in the United States (“GAAP”), to non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP other expense, non-GAAP net income (loss) inclusive of the non-controlling interest, non-GAAP net income (loss) attributable to the Company, non-GAAP net earnings (loss) per share - basic and diluted, attributable to the Company, and free cash flow, respectively. Such non-GAAP measures exclude acquisition-related expenses, amortization and adjustments (consisting of intangible amortization of backlog, inventory fair value adjustments, developed technology, customer relationships, and trade names acquired in connection with business combinations), stock-based compensation expense, restructuring expenses, integration expenses, deferred compensation adjustments, goodwill impairments, professional fees and other expenses, amortization of pension actuarial losses, the tax effect of these adjustments to net loss and purchases of property, plant and equipment, and developed technologies. These measures are used by management in our ongoing planning and annual budgeting processes. Additionally, we believe the presentation of these non-GAAP measures, when combined with the presentation of the most directly comparable GAAP financial measure, is beneficial to the overall understanding of ongoing operating performance of the Company. These non-GAAP financial measures are not prepared in accordance with, or an alternative for, GAAP and therefore should not be considered in isolation or as a substitution for analysis of our results as reported under GAAP. Additionally, our calculation of non-GAAP measures may not be comparable to similar measures calculated by other companies.

Published by
ADTRAN Holdings, Inc.
www.adtran.com

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands)

  ASSETS

December 31,
2025

December 31,
2024

Current Assets

Cash and cash equivalents

$

95,696

$

76,021

Accounts receivable, net

210,687

178,030

Other receivables

7,046

9,775

Inventory, net

215,736

261,557

Income tax receivable

3,667

5,461

Prepaid expenses and other current assets

55,317

56,395

Short-term investments - deferred compensation

35,174

—

Assets held for sale

11,901

11,901

Total Current Assets

635,224

599,140

Property, plant and equipment, net

124,384

106,454

Goodwill

59,983

52,918

Intangibles, net

294,047

284,893

Deferred tax assets

16,481

17,826

Other non-current assets

73,352

78,128

Long-term investments

1,022

32,060

Total Assets

$

1,204,493

$

1,171,419

LIABILITIES AND EQUITY

Current Liabilities

Accounts payable

$

167,337

$

171,825

Unearned revenue

87,541

52,701

Accrued expenses and other liabilities

33,690

34,158

Accrued wages and benefits

32,203

32,853

Deferred compensation liability

37,447

—

Income tax payable

3,642

1,936

Total Current Liabilities

361,860

293,473

Non-current revolving credit agreement outstanding

25,000

189,576

Non-current convertible senior notes, net of debt issuance costs

193,038

—

Deferred tax liabilities

27,453

30,372

Non-current unearned revenue

27,143

22,065

Non-current pension liability

6,277

8,983

Non-current deferred compensation liability

—

33,203

Non-current lease obligations

27,000

25,925

Other non-current liabilities

17,564

17,928

Total Liabilities

685,335

621,525

Redeemable Non-Controlling Interest

373,328

422,943

Equity

Common stock

802

795

Additional paid-in capital

801,269

808,913

Accumulated other comprehensive income

78,877

11,254

Retained deficit

(730,010

)

(688,813

)

Treasury stock

(5,108

)

(5,198

)

Total Equity

145,830

126,951

Total Liabilities and Equity

$

1,204,493

$

1,171,419

Condensed Consolidated Statements of Loss

(Unaudited)

(In thousands, except per share amounts)

  Three Months Ended

Twelve Months Ended

December 31,

December 31,

2025

2024

2025

2024

Revenue

Network Solutions

$

242,653

$

197,009

$

896,911

$

738,964

Services & Support

48,907

45,843

186,896

183,756

Total Revenue

291,560

242,852

1,083,807

922,720

Cost of Revenue

Network Solutions

157,472

135,861

592,141

517,220

Network Solutions - charges and inventory write-down

—

—

—

8,597

Services & Support

20,359

17,435

76,711

72,739

Total Cost of Revenue

177,831

153,296

668,852

598,556

Gross Profit

113,729

89,556

414,955

324,164

Selling, general and administrative expenses

57,409

57,013

226,275

232,918

Research and development expenses

51,842

49,314

204,276

221,458

Goodwill impairment

—

—

—

297,353

Operating Income (Loss)

4,478

(16,771

)

(15,596

)

(427,565

)

Interest and dividend income

1,703

1,631

2,321

3,058

Interest expense

(4,520

)

(4,870

)

(19,344

)

(22,053

)

Net investment (loss) gain

(574

)

(920

)

3,001

3,587

Other income (expense), net

805

687

(1,632

)

246

Income (Loss) Before Income Taxes

1,892

(20,243

)

(31,250

)

(442,727

)

Income tax expense

(3,172

)

(23,461

)

(4,993

)

(7,340

)

Net Loss

$

(1,280

)

$

(43,704

)

$

(36,243

)

$

(450,067

)

Net Income attributable to non-controlling interest (1)

2,316

2,407

9,413

9,824

Net Loss attributable to ADTRAN Holdings, Inc.

$

(3,596

)

$

(46,111

)

$

(45,656

)

$

(459,891

)

Weighted average shares outstanding – basic

79,877

79,091

79,742

78,928

Weighted average shares outstanding – diluted

79,877

79,091

79,742

78,928

Loss per common share attributable to ADTRAN Holdings, Inc. – basic

$

(0.02

)

(2

)

$

(0.58

)

$

(0.52

)

(1

)

$

(5.79

)

Loss per common share attributable to ADTRAN Holdings, Inc. – diluted

$

(0.02

)

(2

)

$

(0.58

)

$

(0.52

)

(1

)

$

(5.79

)

  (1) For the three and twelve months ended December 31, 2025 we accrued $2.3 million and $9.3 million, respectively, net income attributable to non-controlling interest, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA. For the three and twelve months ended December 31, 2024, we accrued $2.4 million and $9.8 million, respectively, representing the recurring cash compensation earned by non-controlling interest shareholders post-DPLTA.

(2) Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects $2.1 million and $4.1 million effect of redemption of RNCI for the three and twelve months ended December 31, 2025 and $0 and $3.0 million effect of redemption of RNCI for the three and twelve months ended December 31, 2024.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

  Twelve Months Ended
December 31,

2025

2024

Cash flows from operating activities:

Net Loss

$

(36,243

)

$

(450,067

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

92,546

90,529

Goodwill impairment

—

297,353

Amortization of revolving credit facility issuance costs

1,351

3,950

Amortization of convertible notes issuance costs

441

—

Gain on investments

(4,740

)

(5,030

)

Net loss on disposal of property, plant and equipment

228

1,371

Stock-based compensation expense

10,062

15,988

Deferred income taxes

(3,847

)

5,576

Inventory write down - business efficiency program

—

4,135

Inventory reserves

(2,541

)

5,316

Change in operating assets and liabilities:

Accounts receivable, net

(18,301

)

46,108

Other receivables

5,767

10,713

Income taxes receivable

2,034

648

Inventory

64,494

79,985

Prepaid expenses other current assets and other assets

19,223

(13,445

)

Accounts payable

17,982

10,238

Accrued expenses and other liabilities

(17,967

)

4,873

Income taxes payable

(722

)

(4,670

)

Net cash provided by operating activities

129,767

103,571

Cash flows from investing activities:

Purchases of property, plant and equipment

(31,737

)

(34,501

)

Purchases of intangibles - developed technology

(37,528

)

(30,671

)

Proceeds from sales and maturities of available-for-sale investments

1,019

1,240

Purchases of available-for-sale investments

(383

)

(268

)

Payments for beneficial interests in securitized accounts receivable

(539

)

(55

)

Net cash used in investing activities

(69,168

)

(64,255

)

Cash flows from financing activities:

Tax withholdings related to stock-based compensation settlements

(1,478

)

(1,143

)

Proceeds from stock option exercises

1,829

824

Proceeds from receivables purchase agreement

—

68,556

Repayments on receivables purchase agreement

—

(83,772

)

Proceeds from draw on revolving credit agreements

49,000

26,000

Repayment of revolving credit agreements

(214,000

)

(31,000

)

Redemption of redeemable non-controlling interest

(46,575

)

(17,398

)

Payment of annual recurring compensation to non-controlling interest

(10,053

)

(10,084

)

Payment of debt issuance cost

(9,003

)

(1,994

)

Proceeds from issuance of senior convertible notes

201,250

—

Payments for capped call transactions related to convertible senior notes

(17,650

)

—

Net cash used in financing activities

(46,680

)

(50,011

)

Net increase (decrease) in cash and cash equivalents

13,919

(10,695

)

Effect of exchange rate changes

5,756

(451

)

Cash and cash equivalents, beginning of year

76,021

87,167

Cash and cash equivalents, end of year

$

95,696

$

76,021

Supplemental disclosure of cash financing activities:

Cash paid for interest

$

13,273

$

20,884

Cash used in operating activities related to operating leases

$

10,216

$

9,274

Supplemental disclosure of non-cash investing activities and financing activities:

Right-of-use assets obtained in exchange for lease obligations

$

6,432

$

5,317

Purchases of property, plant and equipment included in accounts payable

$

3,716

$

2,635

Purchases of property, plant and equipment included in other non-current liabilities

$

5,119

$

—

Redemption of redeemable non-controlling interest

$

4,085

$

2,986

Supplemental Information

Reconciliation of Gross Profit and Gross Margin to

Non-GAAP Gross Profit and Non-GAAP Gross Margin

(Unaudited)

(In thousands)

  Three Months Ended

Twelve Months Ended

December 31, 2025

September 30, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Total Revenue

$

291,560

$

279,435

$

242,852

$

1,083,807

$

922,720

Cost of Revenue

$

177,831

$

172,309

$

153,296

$

668,852

$

598,556

Acquisition-related expenses, amortization and adjustments (1)

(9,964

)

(10,140

)

(9,980

)

(40,534

)

(40,497

)

Stock-based compensation expense

(232

)

(265

)

(317

)

(986

)

(1,142

)

Restructuring expenses (2)

—

—

(538

)

—

(14,580

)

Integration expenses (3)

—

—

123

—

19

Non-GAAP Cost of Revenue

$

167,635

$

161,904

$

142,584

$

627,332

$

542,356

Gross Profit

$

113,729

$

107,126

$

89,556

$

414,955

$

324,164

Non-GAAP Gross Profit

$

123,925

$

117,531

$

100,268

$

456,475

$

380,364

Gross Margin

39.0

%

38.3

%

36.9

%

38.3

%

35.1

%

Non-GAAP Gross Margin

42.5

%

42.1

%

41.3

%

42.1

%

41.2

%

  (1) Includes intangible amortization of backlog, inventory fair value adjustments, developed technology, customer relationships, and trade names acquired in connection with business combinations. We incur charges relating to the amortization of intangible assets and exclude these charges for purposes of calculating our non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of our acquisitions. We exclude these charges for the purpose of calculating our non-GAAP measures, primarily because they are noncash expenses and our internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding intangible asset amortization. Although this does not directly affect our cash position, the loss in value of intangible assets over time can have a material impact on the equivalent GAAP earnings measure.

(2) Includes expenses for a Business Efficiency Program designed to optimize the assets and business processes following the business combination with Adtran Networks. The Business Efficiency Program was completed as of December 31, 2024.

(3) Includes expenses related to the Company's one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks, which bonus program was completed as of December 31, 2024.

Supplemental Information

Reconciliation of Operating Expenses to Non-GAAP Operating Expenses

(Unaudited)

(In thousands)

  Three Months Ended

Twelve Months Ended

December 31, 2025

September 30, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Operating Expenses

$

109,251

$

109,914

$

106,327

$

430,551

$

751,729

Acquisition-related expenses, amortization and adjustments (1)

(1,805

)

(2)

(1,898

)

(8)

(5,294

)

(11)

(8,127

)

(15)

(22,462

)

(19)

Stock-based compensation expense

(1,092

)

(3)

(2,589

)

(9)

(2,853

)

(12)

(9,076

)

(16)

(12,810

)

(20)

Restructuring expenses (4)

—

—

(3,567

)

(13)

284

(17)

(30,101

)

(21)

Integration expenses (5)

—

—

(586

)

(14)

—

(1,930

)

(22)

Deferred compensation adjustments (6)

781

(2,317

)

451

(3,023

)

(3,808

)

Goodwill impairment

—

—

—

—

(297,353

)

(23)

Professional fees and other expenses

(1,988

)

(7)

(694

)

(10)

—

(5,835

)

(18)

—

Non-GAAP Operating Expenses

$

105,147

$

102,416

$

94,478

$

404,774

$

383,265

  (1) We incur charges relating to the amortization of intangible assets and exclude these charges for purposes of calculating our non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of our acquisitions. We exclude these charges for the purpose of calculating our non-GAAP measures, primarily because they are noncash expenses and our internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding intangible asset amortization. Although this does not directly affect our cash position, the loss in value of intangible assets over time can have a material impact on the equivalent GAAP earnings measure.

(2) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $1.4 million is included in selling, general and administrative expenses and $0.4 million is included in research and development expenses on the condensed consolidated statements of loss.

(3) $0.4 million is included in selling, general and administrative expenses and $0.7 million is included in research and development expenses on the condensed consolidated statements of loss.

(4) Includes expenses for a Business Efficiency Program designed to optimize the assets and business processes following the business combination with Adtran Networks. The Business Efficiency Program was completed as of December 31, 2024.

(5) Includes expenses related to the Company's one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks, which was completed as of December 31, 2024.

(6) Includes non-cash change in fair value of equity investments held in the ADTRAN Holdings, Inc. Deferred Compensation Program for Employees, all of which is included in selling, general and administrative expenses on the condensed consolidated statement of loss.

(7) $2.0 million is included in selling, general and administrative expenses on the condensed consolidated statements of loss. Includes professional fees related to an internal investigation and a related SEC inquiry, a provision in connection with a potential 401(k) plan corrective action, and fees relating to other one-time professional fees and business expenses.

(8) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $1.4 million is included in selling, general and administrative expenses and $0.5 million is included in research and development expenses on the condensed consolidated statements of loss.

(9) $1.8 million is included in selling, general and administrative expenses and $0.8 million is included in research and development expenses on the condensed consolidated statements of loss.

(10) $0.7 million is included in selling, general and administrative expenses on the condensed consolidated statements of loss. Includes professional fees related to an internal investigation and a related SEC inquiry, as well as fees relating to other one-time professional fees and business expenses.

(11) Includes $4.3 million of intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations and $1.0 million of legal and advisory fees related to a potential strategic transaction which are included in selling, general and administrative expenses on the condensed consolidated statements of loss.

(12) $1.9 million is included in selling, general and administrative expenses and $1.0 million is included in research and development expenses on the condensed consolidated statements of loss.

(13) $1.2 million is included in selling, general and administrative expenses and $2.4 million is included in research and development expenses on the condensed consolidated statements of loss. Includes expenses for restructuring program designed to optimize the assets and business processes following the business combination with Adtran Networks SE. The restructuring program commenced upon the closing of the business combination with Adtran Networks SE and was substantially completed in late 2024. Additionally, as part of the Business Efficiency Program, management determined to close a facility in Greifswald, Germany which occurred in December 2024. The Business Efficiency Program was completed as of December 31, 2024.

(14) $0.6 million is included in selling, general and administrative expenses on the condensed consolidated statements of loss, and is primarily related to the Company's one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks SE which bonus program was completed as of December 31, 2024.

(15) Includes intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations, of which $6.4 million is included in selling, general and administrative expenses and $1.7 million is included in research and development expenses on the condensed consolidated statements of loss.

(16) $6.0 million is included in selling, general and administrative expenses and $3.1 million is included in research and development expenses on the condensed consolidated statements of loss.

(17) Includes a true-up of expenses on the condensed consolidated statements of loss for a Business Efficiency Program designed to optimize the assets and business processes following the business combination with Adtran Networks. The Business Efficiency Program was completed as of December 31, 2024.

(18) $5.8 million is included in selling, general and administrative expenses on the condensed consolidated statements of loss. Includes professional fees related to an internal investigation and a related SEC inquiry, a provision in connection with a potential 401(k) plan corrective action, employee exit costs and fees relating to other one-time professional fees and business expenses.

(19) Includes $17.6 million of intangible amortization of developed technology, customer relationships, and trade names acquired in connection with business combinations and $4.9 million of legal and advisory fees related to a potential strategic transaction which are included in selling, general and administrative expenses on the condensed consolidated statements of loss.

(20) $9.0 million is included in selling, general and administrative expenses and $3.8 million is included in research and development expenses on the condensed consolidated statements of loss.

(21) $9.1 million is included in selling, general and administrative expenses and $21.0 million is included in research and development expenses on the condensed consolidated statements of loss. Includes expenses for restructuring program designed to optimize the assets and business processes following the business combination with Adtran Networks SE. The restructuring program commenced upon the closing of the business combination with Adtran Networks SE and was substantially completed in late 2024. Additionally, as part of the Business Efficiency Program, management determined to close a facility in Greifswald, Germany which occurred in December 2024. The Business Efficiency Program was completed as of December 31, 2024.

(22) $1.8 million is included in selling, general and administrative expenses and $0.1 million is included in research and development expenses on the condensed consolidated statements of loss, and is primarily related to the Company's one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks SE.

(23) Non-cash impairment of goodwill in our Network Solutions reporting unit, necessitated by factors such as a decrease in the Company's market capitalization, cautious service provider spending due to economic uncertainty and continued elevated customer inventory adjustments.

Supplemental Information

Reconciliation of Operating Income (Loss) and Operating Margin to Non-GAAP Operating Income (Loss)

and Non-GAAP Operating Margin

(Unaudited)

(In thousands)

  Three Months Ended

Twelve Months Ended

December 31, 2025

September 30, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Total Revenue

$

291,560

$

279,435

$

242,852

$

1,083,807

$

922,720

Operating Income (Loss)

$

4,478

$

(2,788

)

$

(16,771

)

$

(15,596

)

$

(427,565

)

Acquisition related expenses, amortizations and adjustments (1)

11,769

12,038

15,274

48,661

62,959

Stock-based compensation expense

1,324

2,855

3,169

10,062

13,951

Restructuring expenses (2)

—

—

4,105

(284

)

44,681

Integration expenses (3)

—

—

464

—

1,911

Deferred compensation adjustments (4)

(781

)

2,317

(451

)

3,023

3,808

Goodwill impairment (5)

—

—

—

—

297,353

Professional fees and other expenses (6)

1,988

694

—

5,835

—

Non-GAAP Operating Income (Loss)

$

18,778

$

15,116

$

5,790

$

51,701

$

(2,902

)

Operating Margin

1.5

%

-1.0

%

-6.9

%

-1.4

%

-46.3

%

Non-GAAP Operating Margin

6.4

%

5.4

%

2.4

%

4.8

%

-0.3

%

  (1) Includes intangible amortization of backlog, inventory fair value adjustments, developed technology, customer relationships, and trade names acquired in connection with business combinations. We incur charges relating to the amortization of intangible assets and exclude these charges for purposes of calculating our non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of our acquisitions. We exclude these charges for the purpose of calculating our non-GAAP measures, primarily because they are noncash expenses and our internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding intangible asset amortization. Although this does not directly affect our cash position, the loss in value of intangible assets over time can have a material impact on the equivalent GAAP earnings measure.

(2) Includes expenses for the Company's Business Efficiency Program, which was designed to optimize the assets and business processes following the business combination with Adtran Networks. The Business Efficiency Program was completed as of December 31, 2024.

(3) Includes expenses related to the Company's one-time integration bonus program in connection with synergy targets as a results of the business combination with Adtran Networks, which bonus program was completed as of December 31, 2024.

(4) Includes non-cash change in fair value of equity investments held in the ADTRAN Holdings, Inc. Deferred Compensation Program for certain employees, all of which is included in selling, general and administrative expenses on the condensed consolidated statement of loss.

(5) Non-cash impairment of goodwill in our Network Solutions reporting unit, necessitated by factors such as a decrease in the Company's market capitalization, cautious service provider spending due to economic uncertainty and continued elevated customer inventory adjustments.

(6) Includes professional fees related to an internal investigation and a related SEC inquiry, a provision in connection with a potential 401(k) plan corrective action, employee exit costs and fees relating to other one-time professional fees and business expenses.

Supplemental Information

Reconciliation of Other Expense to Non-GAAP Other Expense

(Unaudited)

(In thousands)

  Three Months Ended

Twelve Months Ended

December 31, 2025

September 30, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Interest and dividend income

$

1,703

$

291

$

1,631

$

2,321

$

3,058

Interest expense

(4,520

)

(5,499

)

(4,870

)

(19,344

)

(22,053

)

Net investment (loss) gain

(574

)

2,186

(920

)

3,001

3,587

Other income (expense), net

805

(745

)

687

(1,632

)

246

Total Other Expense

$

(2,586

)

$

(3,767

)

$

(3,472

)

$

(15,654

)

$

(15,162

)

Deferred compensation adjustments (1)

601

(2,210

)

1,090

(2,928

)

(3,539

)

Pension expense (2)

12

13

7

47

28

Non-GAAP Other Expense

$

(1,973

)

$

(5,964

)

$

(2,375

)

$

(18,535

)

$

(18,673

)

  (1) Includes non-cash change in fair value of equity investments held in the ADTRAN Holdings, Inc. Deferred Compensation Program for Employees.

(2) Includes amortization of actuarial losses related to the Company's pension plan for employees in certain foreign countries.

Supplemental Information

Reconciliation of Net Loss inclusive of Non-Controlling Interest to

Non-GAAP Net Income (Loss) inclusive of Non-Controlling Interest

(Unaudited)

and

Reconciliation of Net Loss attributable to ADTRAN Holdings, Inc. and

Loss per Common Share attributable to ADTRAN Holdings, Inc. – Basic and Diluted to

Non-GAAP Net Income (Loss) attributable to ADTRAN Holdings, Inc. and

Non-GAAP Earnings (Loss) per Common Share attributable to ADTRAN Holdings, Inc. – Basic and Diluted

(Unaudited)

(In thousands, except per share amounts)

  Three Months Ended

Twelve Months Ended

December 31, 2025

September 30, 2025

December 31, 2024

December 31, 2025

December 31, 2024

Net Loss attributable to ADTRAN Holdings, Inc. common stockholders

$

(1,521

)

$

(9,743

)

$

(46,106

)

$

(41,571

)

$

(456,910

)

Effect of redemption of RNCI (1)

(2,075

)

(519

)

(5

)

(4,085

)

(2,981

)

Net Loss attributable to ADTRAN Holdings, Inc.

$

(3,596

)

$

(10,262

)

$

(46,111

)

$

(45,656

)

$

(459,891

)

Net Income attributable to non-controlling interest (2)

2,316

2,505

2,407

9,413

9,824

Net Loss inclusive of non-controlling interest

$

(1,280

)

$

(7,757

)

$

(43,704

)

$

(36,243

)

$

(450,067

)

Acquisition related expenses, amortization and adjustments (3)

11,769

12,038

15,274

48,661

62,959

Stock-based compensation expense

1,324

2,855

3,169

10,062

13,951

Deferred compensation adjustments (4)

(180

)

107

639

95

269

Pension adjustments (5)

12

13

7

47

28

Restructuring expenses (6)

—

—

4,105

(284

)

44,681

Integration expenses (7)

—

—

464

—

1,911

Goodwill impairment

—

—

—

—

297,353

Professional fees and other expenses (8)

1,988

694

—

5,835

—

Tax effect of adjustments to net loss

(628

)

(2,301

)

20,675

(4,521

)

2,709

Non-GAAP Net Income (Loss) inclusive of non-controlling interest

$

13,005

$

5,649

$

629

$

23,652

$

(26,206

)

Net Income attributable to non-controlling interest (2)

2,316

2,505

2,407

9,413

9,824

Non-GAAP Net Income (Loss) attributable to ADTRAN Holdings, Inc.

$

10,689

$

3,144

$

(1,778

)

$

14,239

$

(36,030

)

Effect of redemption of RNCI (1)

2,075

519

5

4,085

2,981

Non-GAAP Net Income (Loss) attributable to ADTRAN Holdings, Inc. common stockholders

$

12,764

$

3,663

$

(1,773

)

$

18,324

$

(33,049

)

Weighted average shares outstanding – basic

79,877

79,803

79,091

79,742

78,928

Weighted average shares outstanding – diluted

79,877

79,803

79,091

79,742

78,928

Loss per common share attributable to ADTRAN Holdings, Inc. - basic

$

(0.02

)

$

(0.12

)

$

(0.58

)

$

(0.52

)

$

(5.79

)

Loss per common share attributable to ADTRAN Holdings, Inc. - diluted

$

(0.02

)

$

(0.12

)

$

(0.58

)

$

(0.52

)

$

(5.79

)

Non-GAAP Earnings (Loss) per common share attributable to ADTRAN Holdings, Inc. - basic

$

0.16

$

0.05

$

(0.02

)

$

0.23

$

(0.42

)

Non-GAAP Earnings (Loss) per common share attributable to ADTRAN Holdings, Inc. - diluted

$

0.16

$

0.05

$

(0.02

)

$

0.23

$

(0.42

)

  (1) Loss per common share attributable to ADTRAN Holdings, Inc. - basic and diluted - reflects a $2.1 million and a $4.1 million effect of redemption of RNCI for the three and twelve months ended December 31, 2025 and a $0 and a $3.0 million effect of redemption of RNCI for the three and twelve months ended December 31, 2024.

(2) Represents the non-controlling interest portion of the Company's ownership of Adtran Networks pre-DPLTA and the annual recurring compensation earned by redeemable non-controlling interests and accrued by the Company post-DPLTA.

(3) We incur charges relating to the amortization of intangible assets and exclude these charges for purposes of calculating our non-GAAP measures. Such charges are significantly impacted by the timing and magnitude of our acquisitions. We exclude these charges for the purpose of calculating our non-GAAP measures, primarily because they are noncash expenses and our internal benchmarking analyses evidence that many industry participants and peers present non-GAAP financial measures excluding intangible asset amortization. Although this does not directly affect our cash position, the loss in value of intangible assets over time can have a material impact on the equivalent GAAP earnings measure.

(4) Includes non-cash change in fair value of equity investments held in deferred compensation plans offered to certain employees.

(5) Includes amortization of actuarial losses related to the Company's pension plan for employees in certain foreign countries.

(6) Includes expenses for a Business Efficiency Program designed to optimize the assets and business processes following the business combination with Adtran Networks. The Business Efficiency Program was completed as of December 31, 2024.

(7) Includes expenses related to the Company's one-time integration bonus program in connection with synergy targets as a result of the business combination with Adtran Networks. Includes fees incurred for the expansion of internal controls at Adtran Networks and the implementation of the DPLTA which was completed as of December 31, 2024.

(8) Includes professional fees related to an internal investigation and a related SEC inquiry, a provision in connection with a potential 401(k) plan corrective action, employee exit costs and fees relating to other one-time professional fees and business expenses.

Supplemental Information

Reconciliation of Net Cash Provided By Operating Activities to Free Cash Flow

(Unaudited)

(In thousands)

  Three Months Ended

Twelve Months Ended

December 31,

September 30,

December 31,

December 31,

December 31,

2025

2025

2024

2025

2024

Net cash provided by operating activities

$

42,238

$

12,188

$

2,438

$

129,767

$

103,571

Purchases of property, plant and equipment and developed technologies (1)

(19,708

)

(17,029

)

(14,335

)

(69,265

)

(65,172

)

Free cash flow (Non-GAAP)

$

22,530

$

(4,841

)

$

(11,897

)

$

60,502

$

38,399

(1) Purchases related to capital expenditures and developed technologies.

More News From ADTRAN Holdings, Inc.

NEW YORK--(BUSINESS WIRE)--Metropolitan Bank Holding Corp. (NYSE: MCB) (the “Company”), the holding company for Metropolitan Commercial Bank (the “Bank”), today announced the pricing of an underwritten public offering of 2,100,000 shares of its common stock at a price of $85.00 per share. The Company also granted the underwriters a 30-day option to purchase up to an additional 15% of the shares of common stock sold in connection with the offering.

The aggregate gross proceeds of the offering will be approximately $178.5 million before discounts and expenses. Assuming full exercise by the underwriters of their option to purchase additional shares, the aggregate gross proceeds of the offering would be approximately $205.3 million before discounts and expenses. The Company plans to use the net proceeds from the offering to support its organic growth initiatives, investments in the Bank, working capital for ongoing operations, and general corporate purposes. The offering is expected to close on February 27, 2026, subject to customary closing conditions.

UBS Investment Bank and Hovde Group, LLC are acting as joint book-running managers.

The Company has filed with the Securities and Exchange Commission (the “SEC”) a shelf registration statement (including a prospectus) on Form S-3 (File No. 333-283534) that became effective on November 29, 2024 and a preliminary prospectus supplement for the offering to which this press release relates. Before you invest, you should read the preliminary prospectus supplement and the accompanying prospectus, including the information incorporated by reference therein, and the other documents we have filed and will file with the SEC for more complete information about the Company and this offering. The proposed offering is being made only by means of an effective shelf registration statement, including a preliminary prospectus supplement and final prospectus supplement, copies of which may be obtained, when available, for free by visiting EDGAR on the SEC’s website at www.sec.gov. Additionally, copies may be obtained from Metropolitan Bank Holding Corp., 99 Park Avenue, 12th Floor, New York, New York 10016, Attention: Corporate Secretary, (212) 659-0600, or by contacting UBS Securities LLC, 11 Madison Avenue, New York, New York 10010, Attention: Equity Syndicate or toll-free at (212) 713-2000 or Hovde Group, LLC, 1629 Colonial Parkway, Inverness, Illinois 60067, or by telephone toll-free at (833) 587-4159, or by e-mail at [email protected].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offering of the securities is being made only by means of a written prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

About Metropolitan Bank Holding Corp.

Metropolitan Bank Holding Corp. (NYSE: MCB) is the parent company of Metropolitan Commercial Bank (the “Bank”), a New York City based full-service commercial bank. The Bank provides a broad range of business, commercial and personal banking products and services to individuals, small businesses, private and public middle-market corporate enterprises and institutions, municipalities, and local government entities.

Metropolitan Commercial Bank was named one of Newsweek’s Best Regional Banks in 2024 and 2025. The Independent Community Bankers of America ranked the Bank as a top ten loan producer in 2024 among commercial banks with more than $1 billion in assets. Kroll affirmed a BBB+ (investment grade) deposit rating in January 2026. For the fourth time, MCB has earned a place in the Piper Sandler Bank Sm-All Stars Class of 2024.

The Bank is a New York State chartered commercial bank, a member of the Federal Reserve System and the Federal Deposit Insurance Corporation, and an equal housing lender. For more information, please visit the Bank’s website at MCBankNY.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include but are not limited to the Company’s future financial condition and capital ratios, results of operations, outlook, business, share repurchases under the program, dividend payments, intention to conduct the proposed offering, and statements related to the timing of the proposed offering and the size and final terms of the proposed offering, the completion of the proposed offering and the anticipated use of proceeds from the proposed offering. Forward-looking statements are not historical facts. Such statements may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “plan,” “continue” or similar terminology. These statements relate to future events or our future financial performance and involve risks and uncertainties that are difficult to predict and are generally beyond our control and may cause our actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we caution you not to place undue reliance on these forward-looking statements. Factors which may cause our forward-looking statements to be materially inaccurate include, but are not limited to the following: the interest rate policies of the Federal Reserve and other regulatory bodies; an unexpected deterioration in the performance of our loan or securities portfolios; changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; unexpected increases in our expenses; different than anticipated growth and our ability to manage our growth; global pandemics, or localized epidemics, could adversely affect the Company’s financial condition and results of operations; potential recessionary conditions, including the related effects on our borrowers and on our financial condition and results of operations; an unanticipated loss of key personnel or existing clients, or an inability to attract key employees; increases in competitive pressures among financial institutions or from non-financial institutions which may result in unanticipated changes in our loan or deposit rates; unanticipated increases in FDIC insurance premiums or future assessments; legislative, tax or regulatory changes or actions, which may adversely affect the Company’s business; impacts related to or resulting from regional and community bank failures and stresses to regional banks; changes in deposit flows, funding sources or loan demand, which may adversely affect the Company’s business; changes in accounting principles, policies or guidelines may cause the Company’s financial condition or results of operation to be reported or perceived differently; general economic conditions, including unemployment rates, either nationally or locally in some or all of the areas in which the Company does business, or conditions in the securities markets or the banking industry being less favorable than currently anticipated; inflation, which may lead to higher operating costs; declines in real estate values in the Company’s market area, which may adversely affect our loan production; an unexpected adverse financial, regulatory, legal or bankruptcy event experienced by our non-bank financial service clients or critical technology service providers; system failures or cybersecurity breaches of our information technology infrastructure and/or confidential information or those of the Company’s third-party service providers; emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or clients; failure to maintain current technologies or technological changes that may be more difficult or expensive to implement than anticipated, and failure to successfully implement future information technology enhancements; the costs, including the possible incurrence of fines, penalties, or other negative effects (including reputational harm) of any adverse judicial, administrative, or arbitral rulings or proceedings, regulatory enforcement actions, or other legal actions to which we or any of our subsidiaries are a party, and which may adversely affect our results; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the successful implementation or consummation of new business initiatives, which may be more difficult or expensive than anticipated; the timely and efficient development of new products and services offered by the Company or its strategic partners, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value and acceptance of these products and services by clients; changes in consumer spending, borrowing or savings habits; the risks associated with adverse changes to credit quality; an unexpected failure to successfully manage our credit risk and the sufficiency of our allowance for credit losses; credit and other risks from borrower and depositor concentrations (e.g., by geographic area and by industry); difficulties associated with achieving or predicting expected future financial results; and the potential impact on the Company’s operations and clients resulting from natural or man-made disasters, wars, acts of terrorism, cyberattacks and pandemics, as well as those discussed under the heading “Risk Factors” in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q which have been filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Forward-looking statements speak only as of the date of this press release. We do not undertake (and expressly disclaim) any obligation to update or revise any forward-looking statement, except as may be required by law.

More News From Metropolitan Bank Holding Corp.

VANCOUVER, British Columbia, Feb. 25, 2026 (GLOBE NEWSWIRE) -- DMG Blockchain Solutions Inc. (TSX-V: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) (“DMG”), a vertically integrated blockchain and data center technology company, today announces its fiscal first quarter 2026 unaudited financial results. All financial references are in Canadian Dollars unless specified otherwise. Readers are encouraged to review the Company’s December 31, 2025 quarterly unaudited financial statements and management’s discussion and analysis thereof for an assessment of the Company’s performance and applicable risk factors, available at www.sedarplus.ca.

Q1 2026 Financial Results Highlights

Revenue: $11.2 million in Q1 2026, down 2% from $11.4 million in Q4 2025 and down 4% from $11.6 million in Q1 2025Bitcoin Mined: 69 bitcoin, down from 72 bitcoin in Q4 2025 and 97 bitcoin in Q1 2025Hashrate: 1.76 EH/s, up 10% from Q4 2025, with fleet efficiency of 22.0 J/TCash, Short-term Investments and Digital Assets: $58.6 million at the end of Q1 2026, down 10% from $65.2 million at year-end 2025Total Assets: $122.0 million at the end of Q1 2026, down 8% from $132.0 million at year-end 2025Net Income: -$2.2 million or -$0.01 per share DMG’s CEO, Sheldon Bennett, commented, “In Q1 2026, we continued to execute on our two strategic pillars: our Core data center operations and our Core+ Digital Asset Financial Services. We are highly focused on converting our Christina Lake facility into an AI data center capable of providing at least 50 megawatts of critical IT load to fill an industry gap in available capacity. Simultaneously, we are building out our Digital Asset Financial Services, with Systemic Trust serving as the cornerstone for future revenue growth. We are actively pursuing AI off-takers and potential government partnerships, as we believe these strategic initiatives will deliver lasting value to our shareholders.”

First Quarter 2026 Financial Results Review

Revenue decreased from $11.6 million for the three months ended December 31, 2024 (“Q1 fiscal 2025”) to $11.2 million for the three months ended December 31, 2025 (“Q1 fiscal 2026”). The decrease in revenue is attributable to a $1.8 million decrease in digital currency mining revenues, partially offset by other revenue of $1.5 million related to an energy efficiency incentive. The decrease in mining revenue is the result of lower average Bitcoin economics in Q1 fiscal 2026 compared to Q1 fiscal 2025.

Operating and maintenance expenses for Q1 fiscal 2026 were $6.7 million, consistent with Q1 fiscal 2025. General and administrative costs for Q1 fiscal 2026 were $1.9 million, consistent with Q1 fiscal 2025 general and administrative costs of $1.8 million. The main driver of the increase was higher consulting fees during Q1 fiscal 2026 as the Company makes investments in its AI strategy. Research costs for Q1 fiscal 2026 were $0.6 million which remained relatively stable compared to $0.6 million for Q1 fiscal 2025.

Depreciation for Q1 fiscal 2026 was $3.5 million compared to $4.3 million in Q1 fiscal 2025. The $0.8 million decrease is primarily driven by the declining balance depreciation method, which results in higher depreciation charges immediately following asset activation. There were significant additions in fiscal 2023 and early in fiscal 2024 which resulted in higher depreciation expense for Q1 fiscal 2025 as compared to Q1 fiscal 2026.

Net loss decreased by $0.9 million from a net loss of $3.1 million for Q1 fiscal 2025 to a net loss of $2.2 million for Q1 fiscal 2026. The reduced loss is primarily a result of a reduced operating loss resulting from the energy incentive payment and foreign exchange.

Net income/loss and comprehensive income/loss decreased by $28.7 million from income of $12.2 million in Q1 fiscal 2025 to a loss of $16.5 million in Q1 fiscal 2026. This is primarily the result of a $15.3 million unrealized revaluation gain in Q1 fiscal 2025 compared to a $14.3 million unrealized valuation loss in Q1 fiscal 2026, partially offset by the $0.9 million reduction in net loss.

Total assets as of December 31, 2025 were $122.0 million (September 30, 2025 - $132.0 million), a decrease of $10.0 million. The decrease is attributable to the $6.0 million decrease in valuation of its digital assets and $3.1 million decrease in its fixed assets as a result of depreciation.

First Quarter 2026 Results Conference Call Details

The Company will host a conference call to review its results and provide a corporate update on February 26, 2026 at 4:30 PM ET. Participants should register for the call via the link.

In addition to a live Q&A session via chat, management will also address pre-submitted questions. Those wishing to submit a question may do so via email at [email protected], using the subject line ‘Conference Call Question Submission,’ through 2:00 PM ET on February 26, 2026.

About DMG Blockchain Solutions Inc.

DMG is a publicly traded and vertically integrated blockchain and data center technology company that manages, operates and develops end-to-end digital solutions to monetize the digital asset and artificial intelligence compute ecosystems. Systemic Trust Company, a wholly owned subsidiary of DMG, is an integral component of DMG’s carbon-neutral Bitcoin ecosystem, which enables financial institutions to move bitcoin in a sustainable and regulatory-compliant manner. DMG’s Blockseer Explorer is a feature-rich, freely available Bitcoin blockchain explorer, available at blockseer.com.

For more information on DMG Blockchain Solutions visit: www.dmgblockchain.com
Follow @dmgblockchain on X and subscribe to DMG's YouTube channel.

For further information, please contact:

On behalf of the Board of Directors,

Sheldon Bennett, CEO & Director
Tel: +1 (778) 300-5406
Email: [email protected]
Web: www.dmgblockchain.com

For Investor Relations:
[email protected]

For Media Inquiries:
[email protected]

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward-Looking Information

This news release contains forward-looking information or statements based on current expectations. Forward-looking statements contained in this news release include hosting a conference call, potential AI opportunities, the Company’s plan to convert its Christina Lake data center into an AI data center, the potential growth in revenue from Systemic Trust, the expected strong balance sheet to weather a crypto downturn, the Company’s strategy for growth, the planned monetization of certain product and service offerings, developing and executing on the Company’s products, services and business plans, the launch of products and services, events, courses of action, and the potential of the Company’s technology and operations, among others, are all forward-looking information.

Future changes in the Bitcoin network-wide mining difficulty or Bitcoin hashrate may materially affect the future performance of DMG’s production of bitcoin, and future operating results could also be materially affected by the price of bitcoin and an increase in hashrate and mining difficulty.

Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such information can generally be identified by the use of forwarding-looking wording such as "may", "expect", "estimate", "anticipate", "intend", "believe" and "continue" or the negative thereof or similar variations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company, including but not limited to, market and other conditions, volatility in the trading price of the common shares of the Company, business, economic and capital market conditions; the ability to manage operating expenses, which may adversely affect the Company's financial condition; the ability to remain competitive as other better financed competitors develop and release competitive products; regulatory uncertainties; access to equipment; market conditions and the demand and pricing for products; the demand and pricing of bitcoin; security threats, including a loss/theft of DMG's bitcoin; DMG's relationships with its customers, distributors and business partners; the inability to add more power to DMG's facilities; DMG's ability to successfully define, design and release new products in a timely manner that meet customers' needs; the ability to attract, retain and motivate qualified personnel; competition in the industry; the impact of technology changes on the products and industry; failure to develop new and innovative products; the ability to successfully maintain and enforce our intellectual property rights and defend third-party claims of infringement of their intellectual property rights; the impact of intellectual property litigation that could materially and adversely affect the business; the ability to manage working capital; and the dependence on key personnel. DMG may not actually achieve its plans, projections, or expectations. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which the Company will operate in the future, including the demand for its products, the ability to successfully develop software, that there will be no regulation or law that will prevent the Company from operating its business, anticipated costs, the ability to secure sufficient capital to complete its business plans, the ability to achieve goals and the price of bitcoin. Given these risks, uncertainties, and assumptions, you should not place undue reliance on these forward-looking statements. The securities of DMG are considered highly speculative due to the nature of DMG's business. For further information concerning these and other risks and uncertainties, refer to the Company’s filings on www.sedarplus.ca. In addition, DMG’s past financial performance may not be a reliable indicator of future performance.

Factors that could cause actual results to differ materially from those in forward-looking statements include failure to obtain regulatory approval, the continued availability of capital and financing, equipment failures, lack of supply of equipment, power and infrastructure, failure to obtain any permits required to operate the business, the impact of technology changes on the industry, the impact of viruses and diseases on the Company's ability to operate, secure equipment, and hire personnel, competition, security threats including stolen bitcoin from DMG or its customers, consumer sentiment towards DMG's products, services and blockchain technology generally, failure to develop new and innovative products, litigation, adverse weather or climate events, increase in operating costs, increase in equipment and labor costs, equipment failures, decrease in the price of Bitcoin, failure of counterparties to perform their contractual obligations, government regulations, loss of key employees and consultants, and general economic, market or business conditions. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The reader is cautioned not to place undue reliance on any forward-looking information. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Additionally, the Company undertakes no obligation to comment on the expectations of or statements made by third parties in respect of the matters discussed above.

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/6ec891ee-ed0c-4b56-b5a9-e6a1a2e24016

https://www.globenewswire.com/NewsRoom/AttachmentNg/00d2c941-0f40-4445-9e18-37d38b84f32d

https://www.globenewswire.com/NewsRoom/AttachmentNg/95d565ce-9bdb-450d-85dc-26d9feebebeb

Niagara-on-the-Lake, Ontario--(Newsfile Corp. - February 25, 2026) - Diamond Estates Wines & Spirits Inc. (TSXV: DWS) ("Diamond Estates" or the "Company") today announced its financial results and position for the three and nine months ended December 31, 2025 ("Q3 2026").

Q3 2026 Summary

Revenue for Q3 2026 was $8.2 million, an increase of $1.8 million from $6.4 million in Q3 2025. The Winery division experienced an increase in sales of $1.9 million driven by continued growth in grocery, convenience and big-box channels, as well as enhancements to the VQA Support Program. The Agency division experienced a decrease of $0.1 million, primarily driven by consignment sales. Gross margin¹ for Q3 2026 was $4.9 million, an increase of $1.2 million, from $3.7 million in Q3 2025. Gross margin as a percentage of revenue grew to 59.8% compared to 57.5% in the prior year, driven primarily by improved Winery division performance and government support programs. Q3 2026 did not include any Wine Sector Support Program rebates. Q3 2025 included $0.6 million of rebates received in that year, affecting the comparability of gross margins in Q3 2026 on a year-over-year basis due to timing.SG&A expenses increased by $1.2 million to $4.3 million in Q3 2026 from $3.1 million in Q3 2025, primarily due to VQA support payments to Generations related to the D'Ont Poke the Bear licensing agreement (50% of VQA rebates payable through May 2029; recorded as commission expense), in addition to higher advertising, promotional, and compliance costs.Adjusted EBITDA¹ increased by $0.1 million to $0.7 million in Q3 2026 from $0.6 million in Q3 2025, reflecting improved Winery margins partially offset by higher SG&A. This improvement was achieved despite the prior year Wine Sector Support Program payment recognized in Q3 2025. EBITDA¹ decreased by $0.7 million to $0.7 million in Q3 2026 from $1.4 million in Q3 2025, driven by Perigon contingent consideration, share-based compensation, compliance-related expenditures, as well as the timing of Wine Sector Support Program payments of $0.6 million as noted in Adjusted EBITDA above. Net income decreased from $0.5 million in Q3 2025 to a net loss of $0.1 million in Q3 2026, primarily due to the same non-operational and one-time items impacting EBITDA. On a year-to-date basis, the Company generated $2.3 million of cash from operating activities before changes in non-cash working capital in 2025, compared to an outflow of $0.1 million in the prior year period. After incorporating changes in working capital, cash generated from operating activities was $3.9 million in 2025, versus an outflow of $0.1 million in the prior year period.Closure of Regulatory Compliance Review

In Q1 2026, the Company identified an internal practice involving the submission of purchase orders and corresponding invoices to its provincial wholesaler of record under customer names that had not initiated the orders. The matter was voluntarily disclosed, and a Compliance Committee was formed to oversee a comprehensive internal review.

Following this process, in December 2025, the matter was resolved to the satisfaction of the provincial wholesaler of record at nominal financial cost to the Company. While the resolution cost was nominal, the Company incurred approximately $0.1 million in legal and audit-related professional fees in Q3 2026 and $0.4 million year-to-date through Q3 2026 in connection with the review process.

Management has implemented enhanced internal controls, governance processes, and compliance oversight measures to further strengthen its regulatory framework going forward.

President's Message

"I am very pleased with the continued improvement in our business, highlighted by strong revenue growth, industry-leading gross margins, increasing share at Ontario retail stores, and innovative marketing initiatives. Additionally, strengthened cash generation has continued to allow us to right size our balance sheet and positions us well for future investment opportunities.

The recently completed 2025 harvest was one of the largest in our history. In partnership with our grower community, we took in more than twice the volume of grapes compared to 2024. We also brought in our largest ice-wine harvest in recent years, creating exciting opportunities to further expand our profitable ice-wine sales.

Our leadership team is in the final stages of developing our next three-year strategic plan. I am confident in both the choices we are making today and the strong foundation we have built for continued growth and strengthening of our business.

The Ontario VQA wine industry is one of the most vibrant wine businesses in the world right now. While some of the recent momentum reflects the impact of trade tensions, our company is significantly outperforming the Ontario retail channel that has grown more than 50% over the past twelve months. It is also clear that consumers are increasingly choosing to support Canadian-made products during this period of global change. In doing so, many are discovering that there is no compromise in taste or value when choosing a Canadian VQA wine—while the added benefit of supporting our domestic economy is truly the 'cherry on top.'"

About Diamond Estates Wines and Spirits Inc.

Diamond Estates Wines and Spirits Inc. is a producer of high-quality wines and ciders as well as a sales agent for over 120 beverage alcohol brands across Canada. The Company operates four facilities, three in Ontario and one in British Columbia, that produce predominantly VQA wines under such well-known brand names as 20 Bees, Creekside, D'Ont Poke the Bear, EastDell, Lakeview Cellars, Mindful, Shiny Apple Cider, Fresh Wines, Red Tractor, Seasons, Serenity and Backyard Vineyards.

Through its commercial division, Trajectory Beverage Partners, the Company serves as the sales agent for a wide range of leading international beverage brands.

Wine Portfolio:

Trajectory represents renowned wine brands, including Fat Bastard and Gabriel Meffre from France; Kaiken from Argentina; Kings of Prohibition from Australia; Yealands, Kono, Tohu, and Joiy Sparkling Wine from New Zealand; Talamonti and Cielo from Italy; Porta 6, Julia Florista, Boas Quintas, Catedral, and Cabeca de Toiro from Portugal; as well as C.K Mondavi & Family, Charles Krug, Line 39, Harken, FitVine, and Rabble from California. Trajectory also represents a broad portfolio of wines sold exclusively to restaurants, bars and private consumers.

Spirits Portfolio:

The Company also represents distinguished spirit brands such as Cofradia Tequila and Hussong's Tequila from Mexico; Islay Mist and Waterproof blended Scotch whiskies from Scotland; Glen Breton Canadian whiskies from Nova Scotia; Five Farms Irish Cream Liqueur and Broker's Gin from the UK; Tequila Rose Strawberry Cream, 360 Vodka, and Holladay Bourbon from the USA; Giffard Liqueurs from France; and Becherovka from the Czech Republic.

Beer, Cider, and RTD Portfolio:

In the beer, cider, and ready-to-drink (RTD) categories, Trajectory represents Darling Mimosas from Ontario; Warsteiner and Konig Ludwig from Germany.

The Company's mission is to build lasting, mutually beneficial relationships with channel partners, growers, suppliers and employees. To meet this goal, the Company is undertaking significant investments in winemaking, brand marketing, sales programming, performance management and back-office infrastructure, including information systems which will support growth in an efficient, profitable manner. Based on its analysis of the market, the Company believes that the growth prospects for the domestic and import beverage alcohol markets in Canada are positive. The Company continues to be a participant in the export market and has expanded its focus beyond China in the effort to be less reliant on that one marketplace. Canadian wines and particularly Icewine enjoy a premium product positioning with international consumers.

Forward-Looking Statements

This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Diamond Estates Wines and Spirits Inc. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the economy generally; consumer interest in the services and products of the Company; financing; competition; and anticipated and unanticipated costs. While the Company acknowledges that subsequent events and developments may cause its views to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the views of the Company as of any date subsequent to the date of this press release. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Non IFRS Financial Measure - Note¹

Management uses net income (loss) and comprehensive income (loss) as presented in the unaudited interim condensed consolidated statements of net income (loss) and comprehensive income (loss) as well as "gross margin", "EBITDA" and "Adjusted EBITDA" as a measure to assess performance of the Company. The Company defines "gross margin" as gross profit excluding depreciation. EBITDA and "Adjusted EBITDA" are other financial measures and are reconciled to net income (loss) and comprehensive income (loss) below under "Results of Operations".

EBITDA and Adjusted EBITDA are supplemental financial measures to further assist readers in assessing the Company's ability to generate income from operations before considering the Company's financing decisions, depreciation of property, plant and equipment and amortization of intangible assets. EBITDA comprises gross margin less operating costs before financial expenses, depreciation and amortization, non-cash expenses such as share-based compensation, one-time and other unusual items, and income tax. Adjusted EBITDA comprises EBITDA before non- recurring expenses including cost of sales adjustments related to inventory acquired in business combinations, EWG transaction costs expensed, cost of sales adjustment to fixed production overheads, and other non-recurring adjustments included in the calculation of EBITDA. Gross margin is defined as gross profit excluding depreciation on property, plant and equipment used in production. Operating expenses exclude interest, depreciation on property, plant and equipment used in selling and administration, and amortization of intangible assets.

EBITDA does not represent the actual cash provided by the operating activities nor is it a recognized measure of financial performance under IFRS. Readers are cautioned that this measure should not be considered as a replacement for those as per the consolidated financial statements prepared under IFRS. The Company's definitions of this non- IFRS financial measure may differ from those used by other companies.

For more information, please contact:

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

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/285422

Source: Diamond Estates Wines & Spirits Inc.

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For the quarter ended December 2025, Universal Health Services (UHS - Free Report) reported revenue of $4.49 billion, up 9.1% over the same period last year. EPS came in at $5.88, compared to $4.92 in the year-ago quarter.

The reported revenue represents a surprise of +0.05% over the Zacks Consensus Estimate of $4.48 billion. With the consensus EPS estimate being $5.92, the EPS surprise was -0.63%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Universal Health Services performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

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Shares of Universal Health Services have returned +13.5% over the past month versus the Zacks S&P 500 composite's -0.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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What happenedBenchstone Capital Management LP fully liquidated its holding in Norwegian Cruise Line Holdings (NCLH 0.60%), reducing its position by 2,133,322 shares, according to a filing with the Securities and Exchange Commission dated February 17, 2026. The quarter-end stake in Norwegian Cruise Line Holdings was reduced to zero, with the reported value shift including both the share sale and stock price changes.

What else to knowBenchstone sold out its NCLH stake, which previously made up 7.2% of AUM; post-trade

Top holdings after the filing:

NASDAQ:AMZN: $47.49 million (5.3% of AUM)NYSE:TSM: $44.44 million (5.0% of AUM)NASDAQ:SNPS: $43.85 million (4.9% of AUM)NASDAQ:META: $42.52 million (4.8% of AUM)UNK:FWONK: $40.49 million (4.6% of AUM)As of February 16, 2026, shares of Norwegian Cruise Line Holdings were priced at $21.49, down 18.4% over the past year, underperforming the S&P 500 by 30.17 percentage points.

Company overviewMetricValueRevenue (TTM)$9.48 billionNet income (TTM)$910.26 millionPrice (as of market close 2/25/26)$23.81One-year price change-3.7%Company snapshotNorwegian Cruise Line Holdings is a leading global cruise operator with a diverse fleet and a multi-brand portfolio. The company leverages its scale and extensive itinerary options to attract a broad customer base and drive consistent revenue growth. Its strategic focus on premium experiences and global reach positions it competitively within the travel services industry.

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It generates revenue primarily through ticket sales, onboard services, and ancillary offerings, leveraging a multi-brand strategy to serve diverse market segments.

Norwegian Cruise Line Holdings targets leisure travelers worldwide, focusing on North America, Europe, Asia-Pacific, and international markets through retail, travel advisor, and charter channels.

What this transaction means for investorsNorwegian Cruise Line’s stock has underperformed despite rising vacation demand, highlighting the need for strong pricing and effective execution in the cruise industry. Norwegian operates three brands: Norwegian for mainstream cruises, Oceania for upper-premium trips, and Regent for luxury cruises. This portfolio provides access to travelers with greater discretionary spending than the mass-market segment.

Norwegian’s business also depends on more than just ticket sales. Money from specialty dining, drinks, excursions, and entertainment on board brings in strong profits, especially when ships are full. In a mature travel market, cruise lines that fill cabins without heavy discounts and get guests to spend more have an edge over competitors.

For investors, the immediate question is whether Norwegian can maintain pricing and onboard spending while managing its balance sheet in a higher-rate environment. Some Key indicators to watch out for include steady occupancy, firm ticket pricing, resilient onboard revenue per passenger, as well as progress in reducing leverage and interest expense. If these metrics hold, Norwegian’s premium portfolio may be more resilient than recent stock performance indicates.

Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Meta Platforms, Synopsys, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

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