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ARLINGTON, Va., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. (Nasdaq: FLNC) (“Fluence” or the “Company”), a global market leader delivering intelligent energy storage, operational services, and asset optimization software, today announced its results for the three and nine months ended June 30, 2026.

Financial and Operational Highlights for Fiscal Quarter Ended June 30, 2026

Revenue of approximately $649.8 million, compared to approximately $602.5 million in the same quarter last year, primarily driven by an increase in volume of fulfillments of energy storage solutions. Revenue was weaker than expected, primarily reflecting production delays at new contract manufacturing facilities.GAAP gross profit margin of approximately 5.1%, compared to approximately 14.8% in the same quarter last year.Adjusted gross profit margin1 of approximately 5.9%, compared to approximately 15.4% in the same quarter last year, primarily reflecting the impact of delays to revenue, the initial costs of deploying new product platforms, and recognized upfront cost associated with a planned agreement for long-term international battery cell supply.Net loss for the three and nine months ended June 30, 2026 of approximately $44.3 million and $136.1 million, respectively, compared to net income of approximately $6.9 million and net loss of approximately $92.1 million for the same periods last year, respectively.Adjusted EBITDA1 for the three and nine months ended June 30, 2026 of approximately $(29.3) million and $(90.8) million, respectively.Order intake of more than $1.44 billion for the fiscal quarter ended June 30, 2026, nearly triple the order intake of approximately $508.8 million for the same quarter last year.Secured approximately $850.0 million of data center business through July, including the Company's first large, behind-the-meter order signed during the third quarter and approximately $550.0 million of awards from a hyperscaler in July 2026.Backlog2 as of June 30, 2026 of approximately $6.4 billion, the highest level in Company history.Total liquidity3 of approximately $863.0 million as of June 30, 2026, including total cash4 of approximately $365.0 million. “Customer demand for Fluence solutions continues to strengthen, driven by our differentiated technology, digital capabilities, and expanding role supporting the growing power needs of utilities, developers, and data centers. We have been increasing our production capacity globally to meet this growing demand, and although production has been behind our expectation for this year we have taken steps to achieve targeted production levels early in fiscal 2027," said Julian Nebreda, President and Chief Executive Officer. "With both record order intake and backlog, and increasing momentum with all of our customer segments including data centers, we remain confident in the long-term opportunity ahead and our positioning to capitalize on it."

Revised Fiscal Year 2026 Outlook

The Company now expects that $400.0 million in project deliveries will be delayed into fiscal 2027 due to production issues at a new international contract manufacturing facility and construction related delays that affected the completion and start-up of a new U.S. contract manufacturing facility. As a result, the Company is revising its fiscal year 2026 guidance as follows:

Revenue of approximately $2.9 billion to $3.1 billion with a midpoint of $3.0 billion compared to the prior guidance range of approximately $3.2 billion to $3.6 billion with a midpoint of $3.4 billion.Adjusted EBITDA1 of approximately ($30.0) million to $10.0 million, with a midpoint of approximately ($10.0) million compared to prior guidance of approximately $40.0 million to $60.0 million with a midpoint of $50.0 million. This reduction reflects the reduced revenue outlook and an approximately $15 million upfront cost associated with a planned agreement for long-term international battery supply.Annual recurring revenue of approximately $180.0 million by the end of fiscal year 2026, which is unchanged. "Although delays in deliveries of some U.S. projects impacted third quarter revenue and our full year outlook, the associated revenue remains in backlog and is expected to be recognized in fiscal 2027," said Ahmed Pasha, Chief Financial Officer. "We ended the quarter with strong liquidity, providing flexibility and a strong foundation to support increased order volume and future growth.”

The foregoing "Revised Fiscal Year 2026 Outlook" statements represent management's current best estimate as of the date of this release. Actual results may differ materially depending on a number of factors. Investors are urged to read the "Cautionary Note Regarding Forward-Looking Statements" section included in this release. Management does not assume any obligation to update these estimates.

Conference Call Information

The Company will conduct a teleconference starting at 8:30 a.m. EDT on Thursday, August 6, 2026, to discuss our third quarter results. To participate, analysts are required to register by clicking Fluence Energy Q3 Earnings Call Registration Link. Once registered, analysts will be issued a unique PIN number and dial-in number. Analysts are encouraged to register at least 15 minutes before the scheduled start time.

General audience participants, and non-analysts are encouraged to join the teleconference in a listen-only mode at: Fluence Energy Listen - Only Webcast, or on https://fluenceenergy.com by selecting Investors, News & Events, and Events & Presentations. Supplemental materials that may be referenced during the teleconference will be available at: https://fluenceenergy.com, by selecting Investors, News & Events, and Events & Presentations.

A replay of the conference call will be available after 1:00 p.m. EDT on Thursday, August 6, 2026. The replay will be available on the Company’s website at https://fluenceenergy.com by selecting Investors, News & Events, and Events & Presentations.

Non-GAAP Financial Measures

We present our operating results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). We believe certain financial measures, such as Adjusted EBITDA, Adjusted Gross Profit, Adjusted Gross Profit Margin, and Free Cash Flow, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented in accordance with GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with GAAP. These measures have limitations as analytical tools, including that other companies, including companies in our industry, may calculate these measures differently, reducing their usefulness as comparative measures.

Adjusted EBITDA is calculated from the condensed consolidated statements of operations using net income (loss) adjusted for (i) interest (income) expense, net, (ii) income taxes, (iii) depreciation and amortization, (iv) stock-based compensation, and (v) other non-recurring income or expenses. Adjusted EBITDA also includes amounts impacting net income related to estimated payments due to related parties pursuant to the Tax Receivable Agreement, dated October 27, 2021, by and among Fluence Energy, Inc., Fluence Energy, LLC, Siemens Industry, Inc. and AES Grid Stability, LLC (the “Tax Receivable Agreement”).

Adjusted Gross Profit is calculated from the condensed consolidated statements of operations using gross profit, adjusted to exclude (i) stock-based compensation expenses, (ii) depreciation and amortization, and (iii) other non-recurring income or expenses. Adjusted Gross Profit Margin is calculated using Adjusted Gross Profit divided by total revenue.

Free Cash Flow is calculated from the condensed consolidated statements of cash flows and is defined as net cash provided by (used in) operating activities, adjusted to exclude purchases made under supply chain financing arrangements, less repayments of obligations under supply chain financing arrangements and purchase of property and equipment made in the period. It should not be inferred that the entire Free Cash Flow amount is available for discretionary expenditures (for example, cash is still required to satisfy other working capital needs, including short-term investment policy, restricted cash, and intangible assets) and Free Cash Flow does not reflect our future contractual commitments.

Please refer to the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures included in tables contained at the end of this release.  

The Company is not able to provide a quantitative reconciliation of full fiscal year 2026 Adjusted EBITDA to GAAP net income (loss) on a forward-looking basis because of the uncertainty around certain items that may impact Adjusted EBITDA, including stock compensation and restructuring expenses, that are not within our control or cannot be predicted at this time without unreasonable effort.

About Fluence

Fluence Energy, Inc. (Nasdaq: FLNC) is a global market leader delivering intelligent energy storage and optimization software for renewables and storage. The Company's solutions and operational services are helping to create a more resilient grid and unlock the full potential of renewable portfolios. With gigawatts of projects successfully contracted, deployed, and under management across nearly 50 markets, the Company is transforming the way we power our world for a more sustainable future.

For more information, visit our website, or follow us on LinkedIn. To stay up to date on the latest industry insights, sign up for Fluence's Full Potential Blog.

Cautionary Note Regarding Forward-Looking Statements

This press release and statements that are made on our earnings call contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts contained in this press release and on our earnings call, including without limitation, statements set forth above under “Revised Fiscal Year 2026 Outlook” and other statements regarding the Company's future results of operations and financial position, operational performance, the Company’s business, growth, and innovation strategy and the efficacy of our products and services to meet evolving needs, future market and industry growth and related opportunities for the Company, including relating to data centers, projected operating costs and future cost visibility, future liquidity, expectations relating to working capital, and access to capital and cash flows, future capital expenditures and debt service obligations, expectations related to backlog, pipeline, order intake, and contracted backlog, expectations regarding Smartstack becoming a leading product, expectations regarding the deployment, performance, and customer adoption of new product offerings, expectations regarding customer demand for Company products and solutions, impact of the Company’s planned new battery cell supply agreement, the Company’s supply chain strategy, including future volume and production capacity, expectations regarding our contract manufacturing partners and related facilities, potential impact from delays in ramp up of production facilities, associated project delays, and cost overruns, including those arising from the introduction of new product platforms, and projected costs, beliefs, assumptions, prospects, plans and objectives of management and timing associated therewith. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “may,” “possible,” “will,” “should,” “seeks,” “expects,” “plans,” “anticipates,” “grows,” “could,” “intends,” “targets,” “projects,” “contemplates,” "commits", “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions and variations thereof and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments, as well as a number of assumptions concerning future events, and their potential effects on our business. These forward-looking statements are not guarantees of performance, and there can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements are subject to a number of risks, uncertainties, and other important factors that could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the elimination or expiration of government incentives or regulations regarding renewable energy; changes in the global trade environment; fluctuations in order intake and results of operations across fiscal periods; a significant reduction in order volume or loss of significant customers or their inability to perform under contracts; competition for offerings and the ability to attract new customers and retain existing ones; maintaining and enhancing reputation and brand recognition; our ability to manage recent and future growth and the expansion of our business and operations; our ability to attract and retain highly qualified personnel; our growth depending on the success of relationships with third parties; delays, disruptions, and quality control problems in manufacturing operations; risks associated with engineering and construction, utility interconnection, commissioning and installation of energy storage products, cost overruns, and delays; supplier concentration and limited supplier capacity; operating as a global company with a global supply chain; changes in the cost and availability of raw materials and underlying components; lengthy sales and installation cycle for energy storage solutions; quality and quantity of components provided by suppliers; defects, errors, vulnerabilities, and/or bugs in products and technology; events and incidents relating to storage, delivery, installation, operation, maintenance, and shutdowns of products; current and planned foreign operations; failure by contract manufacturers, vendors, and suppliers to use ethical business practices and comply with applicable laws and regulations; actual or threatened health epidemics, pandemics, or similar public health threats; severe weather events; acquisitions made or that may be pursued; our ability to obtain financial assurances for projects; relatively limited operating and revenue history as an independent entity and the nascent clean energy industry; anticipated increases in expenses in the future and our ability to maintain prolonged profitability; the risk that amounts included in the pipeline and contracted backlog may not result in actual revenue or translate into profits; restrictions set forth in current and future credit and debt agreements; our uncertain ability to raise additional capital to execute on business opportunities; fluctuations in currency exchange rates; whether renewable energy technologies are suitable for widespread adoption or if sufficient demand for offerings does not develop or takes longer to develop than anticipated; our estimates on the size of the total addressable market; macroeconomic uncertainty and market conditions; interest rates or a reduction in the availability of tax equity or project debt capital in the global financial markets and corresponding effects on customers’ ability to finance energy storage systems and demand for energy storage solutions; the cost of electricity available from alternative sources; a decline or delay in public acceptance of renewable energy, or increase in the cost of customer projects; increased attention to environmental, social and governance matters; our ability to obtain, maintain, and enforce proper protection for intellectual property, including technology; the threat of lawsuits by third parties alleging intellectual property violations; our having adequate protection for trademarks and trade names; our ability to enforce intellectual property rights; our patent portfolio; our ability to effectively protect data integrity of technology infrastructure, data, and other business systems; the use of open-source software; our failure to comply with third-party license or technology agreements; our inability to license rights to use technologies on reasonable terms; compromises, interruptions, or shutdowns of systems; use of artificial intelligence (“AI”) technologies; potential changes in tax laws or regulations; barriers arising from current electric utility industry policies and regulations and any subsequent changes; environmental, health, and safety laws and potential obligations, liabilities, and costs thereunder; actual or perceived failure to comply with data privacy and data security laws, regulations, industry standards, and other requirements relating to the privacy, security, and processing of personal information; potential future legal proceedings, regulatory disputes, and governmental inquiries; ownership of our Class A common stock; short-seller activists; being a “controlled company” within the meaning of the rules of the Nasdaq Stock Market; conflicts of interest by officers and directors due to positions with our continuing equity owners; relationship with our founders and continuing equity owners; terms of our amended and restated certificate of incorporation and amended and restated bylaws; our dependence on distributions from Fluence Energy, LLC to pay taxes and expenses and Fluence Energy, LLC’s ability to make such distributions may be limited or restricted in certain scenarios; risks arising out of the Tax Receivable Agreement; unanticipated changes in effective tax rates or adverse outcomes resulting from examination of tax returns; risks related to the 2030 Convertible Senior Notes; improper and ineffective internal control over reporting to comply with the Sarbanes-Oxley Act; changes in accounting principles or their applicability; and estimates or judgments relating to critical accounting policies; and other important factors set forth under Part I, Item 1A.“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 25, 2025 and Part II, Item 1A. "Risk Factors" in this Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2026, as well as in other filings we make with the SEC from time to time. New risks and uncertainties emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the effect of all such risk factors on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.

Analyst Contact
Chris Shelton, Vice President of Finance, GID, and Investor Relations
Email: [email protected] 

Media Contact
Shayla Ebsen, Director of Communications
+1 605-645-7486
Email: [email protected] 

FLUENCE ENERGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. Dollars in Thousands, except share and per share amounts)
     Unaudited   June 30,
2026 September 30,
2025Assets   Current assets:   Cash and cash equivalents$339,328  $690,768 Restricted cash 25,630   23,862 Trade receivables, net 350,134   272,820 Unbilled receivables 328,210   239,594 Receivables from related parties 108,922   200,748 Advances to suppliers 226,390   126,778 Inventory, net 783,031   455,015 Other current assets 162,861   54,671 Total current assets 2,324,506   2,064,256 Non-current assets:   Property and equipment, net$43,506  $50,320 Intangible assets, net 64,221   63,403 Goodwill 28,297   28,584 Deferred income tax asset 2,878   4,046 Other non-current assets 152,195   146,391 Total non-current assets 291,097   292,744 Total assets$2,615,603  $2,357,000 Liabilities and Stockholders’ Equity   Current liabilities:   Accounts payable$295,056  $321,004 Deferred revenue 956,491   640,457 Deferred revenue with related parties 57,531   79,916 Personnel related liabilities 44,189   31,850 Accruals and provisions 274,935   246,235 Taxes payable 15,186   30,317 Other current liabilities 90,661   20,590 Total current liabilities 1,734,049   1,370,369 Non-current liabilities:   Deferred income tax liability$9,101  $9,530 Convertible senior notes, net 392,164   390,804 Other non-current liabilities 49,065   37,449 Total non-current liabilities 450,330   437,783 Total liabilities 2,184,379   1,808,152 Stockholders’ Equity:   Preferred stock, $0.00001 per share, 10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2026 and September 30, 2025 —   — Class A common stock, $0.00001 par value per share, 1,200,000,000 shares authorized; 144,125,253 shares issued and 143,136,891 shares outstanding as of June 30, 2026; 132,014,571 shares issued and 131,164,365 shares outstanding as of September 30, 2025 1   1 Class B-1 common stock, $0.00001 par value per share, 134,325,805 shares authorized; 41,432,781 and 51,499,195 shares issued and outstanding as of June 30, 2026 and September 30, 2025, respectively —   — Class B-2 common stock, $0.00001 par value per share, 200,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2026 and September 30, 2025 —   — Treasury stock, at cost (12,930)  (10,213)Additional paid-in capital 670,321   627,956 Accumulated other comprehensive income 14,394   11,613 Accumulated deficit (298,576)  (199,762)Total stockholders’ equity attributable to Fluence Energy, Inc. 373,210   429,595 Non-Controlling interests 58,014   119,253 Total stockholders’ equity 431,224   548,848 Total liabilities and stockholders’ equity$2,615,603  $2,357,000          FLUENCE ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(U.S. Dollars in Thousands, except share and per share amounts)
     Three Months Ended June 30, Nine Months Ended June 30,  2026   2025   2026   2025 Revenue$        600,180  $        566,926  $        1,317,908  $        947,532 Revenue from related parties         49,668           35,607           272,065           273,407 Total revenue         649,848           602,533           1,589,973           1,220,939 Cost of goods and services         616,607           513,434           1,487,053           1,068,057 Gross profit         33,241           89,099           102,920           152,882 Operating expenses:       Research and development         23,740           26,011           63,351           65,325 Sales and marketing         25,300           19,822           70,600           59,213 General and administrative         37,735           35,603           116,809           113,722 Depreciation and amortization         3,986           3,628           12,010           9,386 Interest (income) expense, net         (2,915)          1,083           1,219           733 Other income, net         (11,101)          (8,519)          (19,392)          (4,315)(Loss) income before income taxes         (43,504)          11,471           (141,677)          (91,182)Income tax expense (benefit)         772           4,577           (5,574)          869 Net (loss) income$        (44,276) $        6,894  $        (136,103) $        (92,051)Net (loss) income attributable to non-controlling interest$        (11,459) $        642  $        (37,289) $        (25,791)Net (loss) income attributable to Fluence Energy, Inc.$        (32,817) $        6,252  $        (98,814) $        (66,260)        Weighted average number of Class A common shares outstanding:       Basic 138,129,139   130,723,258   134,060,941   130,062,109 Diluted 138,129,139   183,645,493   134,060,941   130,062,109 (Loss) income per share of Class A common stock:       Basic$        (0.24) $        0.05          $        (0.74) $        (0.51)Diluted$        (0.24) $        0.01          $        (0.74) $        (0.51)                 FLUENCE ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
(U.S. Dollars in Thousands)
    ​Three Months Ended June 30, Nine Months Ended June 30,  2026   2025   2026   2025 Net (loss) income$(44,276) $6,894  $(136,103) $(92,051)        (Loss) gain on foreign currency translation, net of tax (2,862)  13,405   (4,867)  16,768 Gain (loss) on cash flow hedges, net of tax 14,200   (5,412)  8,475   2,287 Total other comprehensive income 11,338   7,993   3,608   19,055 Total comprehensive (loss) income$(32,938) $14,887  $(132,495) $(72,996)Comprehensive (loss) income attributable to non-controlling interest$(8,463) $2,905  $(36,462) $(20,389)Total comprehensive (loss) income attributable to Fluence Energy, Inc.$(24,475) $11,982  $(96,033) $(52,607)                 FLUENCE ENERGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(U.S. Dollars in Thousands)
   Nine Months Ended June 30,  2026   2025 Operating activities   Net loss$(136,103) $(92,051)Adjustments to reconcile net loss to net cash used in operating activities:   Depreciation and amortization 30,723   18,929 Amortization of debt issuance costs 3,712   3,072 Inventory provision (6,756)  (811)Stock-based compensation 14,118   15,459 Deferred income taxes (119)  5,814 Changes in operating assets and liabilities:   Trade receivables, net (77,924)  64,761 Unbilled receivables (85,919)  22,357 Receivables from related parties 91,826   204,158 Advances to suppliers (99,644)  (38,415)Inventory (321,405)  (469,694)Other current assets (75,985)  20,524 Other non-current assets (11,552)  (23,504)Accounts payable (22,215)  (180,842)Deferred revenue with related parties (22,379)  9,598 Deferred revenue 318,984   264,498 Accruals and provisions 26,317   (118,359)Taxes payable (15,037)  (56,187)Other current liabilities 10,703   (65,617)Other non-current liabilities 12,121   5,029 Net cash used in operating activities (366,534)  (411,281)Investing activities   Capital expenditures on software and other (11,656)  (10,023)Purchase of property and equipment (9,678)  (10,024)Issuance of note receivable (30,000)  — Proceeds from sale of equity method investment 3,686   — Net cash used in investing activities (47,648)  (20,047)Financing activities   Class A common stock withheld related to settlement of employee taxes for stock-based compensation awards (2,717)  (490)Proceeds from issuance of 2030 Convertible Senior Notes —   400,000 Purchases of Capped Calls related to 2030 Convertible Senior Notes —   (29,000)Payment for debt issuance costs (1,704)  (12,132)Purchases under supply chain financing arrangements 101,937   — Repayments of obligations under supply chain financing arrangements (24,751)  — Proceeds from exercise of stock options 3,470   1,767 Distribution to AES Grid Stability —   (1,035)Principal payments on finance leases (4,180)  (465)Net cash provided by financing activities 72,055   358,645 Effect of exchange rate changes on cash and cash equivalents (7,545)  13,865 Net decrease in cash, cash equivalents, and restricted cash (349,672)  (58,818)Cash, cash equivalents, and restricted cash as of the beginning of the period 714,630   518,706 Cash, cash equivalents, and restricted cash as of the end of the period$364,958  $459,888 Supplemental Cash Flows Information   Interest paid$14,112  $7,876 Cash paid (refund) on income taxes$19,016  $(1,429)         FLUENCE ENERGY, INC.
KEY OPERATING METRICS (UNAUDITED)

The following tables present our key operating metrics as of June 30, 2026 and September 30, 2025. The tables below present the metrics in either Gigawatts (GW) or Gigawatt hours (GWh). Our key operating metrics focus on project milestones to measure our performance and designate each project as either “deployed”, “assets under management”, “contracted backlog”, or “pipeline”.

  June 30, 2026 September 30, 2025​Change  Change %Energy Storage Products and Solutions ​​​​   Deployed (GW) 7.4 6.8​0.6​9%Deployed (GWh) 19.3 17.8 1.5 8%Contracted Backlog (GW) 12.6 9.1​3.5​38%Pipeline (GW) 45.6 35.7 9.9 28%Pipeline (GWh) 163.7 122.0​41.7​34% (amounts in GW) June 30, 2026 September 30, 2025​Change  Change %Services ​​​​ ​ Assets under Management 6.3 5.6​0.7​13%Contracted Backlog 7.9 7.0​0.9​13%Pipeline 33.3 29.4​3.9​13% (amounts in GW) June 30, 2026 September 30, 2025​Change  Change %Digital ​​​​ ​ Assets under Management 22.8 22.0​0.8​4%Contracted Backlog 13.9 12.1​1.8​15%Pipeline 51.4 63.7​(12.3)​(19%) The following table presents our order intake for the three and nine months ended June 30, 2026 and 2025. The table is presented in Gigawatts (GW):

(amounts in GW) Three Months Ended June 30,​    Nine Months Ended June 30,​    2026 2025​Change​Change %​2026 2025​Change​Change %Energy Storage Products and Solutions​​​​​​​​        Contracted​2.6 0.7​1.9​271%​4.2 1.9​2.3 121%Services​​​ ​​​​​​  ​   Contracted​0.3 1.4​(1.1)​(79)%​1.6 2.0​(0.4) (20)%Digital​​​ ​​​​​​  ​   Contracted​0.6 0.9​(0.3)​(33)%​6.0 5.4​0.6​11% Deployed

Deployed represents cumulative energy storage products and solutions that have achieved substantial completion and are not decommissioned. Deployed is monitored by management to measure our performance towards achieving project milestones.

Assets Under Management

Assets under management for service contracts represents our long-term service contracts with customers associated with our completed energy storage system products and solutions. In general, we start providing maintenance, monitoring, or other operational services after the storage product projects are completed. This is not limited to energy storage solutions delivered by Fluence. Assets under management for digital software represents contracts signed and active (post go live). Assets under management serves as an indicator of expected revenue from our customers and assists management in forecasting our expected financial performance.

Contracted Backlog

For our energy storage products and solutions contracts, contracted backlog includes signed customer orders or contracts under execution prior to when substantial completion is achieved. For service contracts, contracted backlog includes signed service agreements associated with our storage product projects that have not been completed and the associated service has not started. For digital applications contracts, contracted backlog includes signed agreements where the associated subscription has not started.

We cannot guarantee that our contracted backlog will result in actual revenue in the originally anticipated period or at all. Contracted backlog may not generate margins equal to our historical operating results. Our customers may experience project delays or cancel orders as a result of external market factors and economic or other factors beyond our control. If our contracted backlog fails to result in revenue as anticipated or in a timely manner, we could experience a reduction in revenue, profitability, and liquidity.

Contracted/Order Intake

Contracted, which we use interchangeably with “order intake”, represents new energy storage product and solutions contracts, new service contracts and new digital contracts signed during each period presented. We define “Contracted” as a firm and binding purchase order, letter of award, change order or other signed contract (in each case an “Order”) from the customer that is received and accepted by Fluence. Our order intake is intended to convey the dollar amount and gigawatts (operating measure) contracted in the period presented. We believe that order intake provides useful information to investors and management because the order intake provides visibility into future revenue and enables evaluation of the effectiveness of the Company’s sales activity and the attractiveness of its offerings in the market.

Pipeline

Pipeline represents our uncontracted, potential revenue from energy storage products and solutions, service, and digital software contracts, which have a reasonable likelihood of contract execution within 24 months. Pipeline is an internal management metric that we construct from market information reported by our global sales force. Pipeline is monitored by management to understand the anticipated growth of our Company and our estimated future revenue related to customer contracts for our battery-based energy storage products and solutions, services and digital software.

We cannot guarantee that our pipeline will result in actual revenue in the originally anticipated period or at all. Pipeline may not generate margins equal to our historical operating results. Our customers may experience project delays or cancel orders as a result of external market factors and economic or other factors beyond our control. If our pipeline fails to result in revenue as anticipated or in a timely manner, we could experience a reduction in revenue, profitability, and liquidity.

Annual Recurring Revenue (ARR)

ARR represents the net annualized contracted value including software subscriptions including initial trial, licensing, long term service agreements, and extended warranty agreements as of the reporting period. ARR excludes one-time fees, revenue share or other revenue that is non-recurring and variable. The Company believes ARR is an important operating metric as it provides visibility to future revenue. It is important to management to increase this visibility as we continue to expand. ARR is not a forecast of future revenue and should be viewed independently of revenue and deferred revenue as ARR is an operating metric and is not intended to replace these items.

FLUENCE ENERGY, INC.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES (UNAUDITED)

The following tables present our non-GAAP measures for the periods indicated.

($ in thousands)​Three Months Ended June 30, Nine Months Ended June 30,​ 2026 ​ 2025  2026 ​ 2025 Net loss​$(44,276) $6,894 $(136,103) $(92,051)Add:​ ​​    Interest expense (income), net​ (2,915)​ 1,083  1,219   733 Income tax expense (benefit)​ 772 ​ 4,577  (5,574)  869 Depreciation and amortization​ 11,198 ​ 8,255  30,723   18,929 Stock-based compensation  4,891   6,400  14,121   15,542 Other non-recurring expenses(a)​ 1,034 ​ 146  4,818   3,246 Adjusted EBITDA ​$(29,296) $27,355 $(90,796) $(52,732) (a) Amount for the three months ended June 30, 2026 includes $0.5 million for secondary offering expenses and $0.5 million for legal and consulting fees related to potential strategic transactions. Amount for the three months ended June 30, 2025 includes approximately $1.4 million in severance costs related to restructuring and $1.2 million in income as a result of a reduction of our Tax Receivable Agreement liability. Amounts for nine months ended June 30, 2026 includes approximately $3.8 million for legal and consulting fees related to potential strategic transactions, $0.5 million of impairment expense related to an equity method investment, and $0.5 million for secondary offering expenses. Amount for the nine months ended June 30, 2025 includes $4.5 million in severance costs related to restructuring and $1.2 million in income as a result of a reduction of our Tax Receivable Agreement liability.

($ in thousands) Three Months Ended June 30, Nine Months Ended June 30,  2026 ​ 2025   2026 ​ 2025 Total revenue $649,848 ​$602,533  $1,589,973  $1,220,939 Cost of goods and services​ 616,607 ​ 513,434   1,487,053   1,068,057 Gross profit​ 33,241 ​ 89,099   102,920   152,882 Gross profit margin %​ 5.1%​ 14.8%  6.5%  12.5%Add:        Stock-based compensation  199   636   1,084   2,154 Depreciation and amortization  5,185   2,734   12,768   5,388 Other non-recurring expenses​ — ​ 307   —   606 Adjusted Gross Profit $38,625 ​$92,776  $116,772 ​$161,030 Adjusted Gross Profit Margin %​ 5.9%​ 15.4%  7.3%​ 13.2% ​​

($ in thousands) Nine Months Ended June 30,  2026   2025 Net cash used in operating activities $(366,534) $(411,281)Add: Purchases under supply chain financing arrangements  101,937   — Less: Repayments of obligations under supply chain financing arrangements  (24,751)  — Less: Purchase of property and equipment  (9,678)​ (10,024)Free Cash Flow $(299,026)​$(421,305) 1 Non-GAAP Financial Metric. See the section titled "Non-GAAP Financial Measures" for more information regarding the Company's use of non-GAAP financial measures, as well as a reconciliation to the most directly comparable financial measures stated in accordance with GAAP.
2 Backlog represents the unrecognized revenue value of our contractual commitments, which include deferred revenue and amounts that will be billed and recognized as revenue in future periods. The company's backlog may vary significantly each reporting period based on the timing of major new contractual commitments and the backlog may fluctuate with currency movements. In addition, under certain circumstances, the Company's customers have the right to terminate contracts or defer the timing of its services and their payments to the Company.
3 Total liquidity is a management metric and is defined as cash and cash equivalents + restricted cash + capacity available under our working capital facilities, net of letters of credit issued. Our working capital facilities include our two supply chain financing programs and our revolving credit facility, under which we can issue letters of credit or, subject to certain limitations, incur borrowings thereunder. Each of our working capital facilities are subject to covenants and restrictions as set forth therein, including a cash draw sublimit in the revolving credit facility of $150.0 million. As of June 30, 2026, we had $193.0 million of outstanding letters of credit under our revolving credit facility, with remaining availability of $307.0 million.
4 Total cash includes cash and cash equivalents + restricted cash. 

The Swiss telecommunications operator is to modernize and evolve its CRM with aOS, Amdocs's agentic operating system for telco, to help its frontline staff work more efficiently

JERSEY CITY, NJ / ACCESS Newswire / August 5, 2026 / Amdocs (NASDAQ:DOX), a leading provider of software and services for communications and media companies, today announced that Sunrise has extended its long-standing collaboration with Amdocs to enhance its business support systems (BSS) embarking on a next-generation CRM evolution.

At the core of this transformation is the modernization and evolution of Sunrise's CRM Interface for Customer Service Representatives. Powered by aOS, Amdocs' agentic operating system for telco, Sunrise will focus on evolving its CRM to enable smarter, faster, and more streamlined workflows that help its service personnel to perform their work more efficiently and diligently.

By evolving its CRM within governed workflows that ensure reliability, security, and control, Sunrise aims to equip its agents with the tools and information they need to resolve issues faster and reduce average handling time, streamlining day-to-day operations across its contact centers and stores.

"CRM evolution is central to our operational strategy at Sunrise," said Anna Maria Blengino, Chief Information Officer at Sunrise. "Extending our collaboration with Amdocs allows us to build on a strong foundation while modernizing our CRM. By introducing new capabilities such as AI analytics into our CRM environment, we are equipping our call center staff with the tools they need to work more efficiently, resolve issues faster, and spend less time navigating systems."

"Sunrise's continued trust in Amdocs reflects the strength of our long-standing collaboration and our shared commitment to innovation," said Anthony Goonetilleke, Group President of Technology and Head of Strategy at Amdocs. "With Amdocs aOS, we are enabling Sunrise to reimagine and evolve its CRM, making service agents' day-to-day work more intuitive and efficient by embedding new capabilities directly into core workflows."

Supporting Resources

Learn more about aOS, here

Keep up with Amdocs news by visiting the company's website

Follow us on X, Facebook, LinkedIn, and YouTube

About Amdocs

Amdocs helps the world's leading communications and media companies deliver exceptional customer experiences through reliable, efficient, and secure operations at scale. We provide software products and services that embed intelligence into how work runs across business, IT, and network domains - delivering measurable outcomes in customer experience, network performance, cloud modernization, and revenue growth. With our talented people, and more than 40 years of experience running mission-critical systems around the globe, Amdocs runs billions of transactions daily. Our technology is relied on every day, connecting people worldwide and advancing a more inclusive, connected world. Together, we help those who shape the future to make it amazing. Amdocs is listed on the NASDAQ Global Select Market (NASDAQ:DOX) and reported revenue of $4.53 billion in fiscal 2025. For more information, visit www.amdocs.com.

Amdocs' Forward-Looking Statement

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters and years. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general macroeconomic conditions, prevailing level of macroeconomic, business and operational uncertainty, including as a result of geopolitical events or other regional events or pandemics, changes to trade policies including tariffs and trade restrictions, as well as the current inflationary environment, and the effects of these conditions on the Company's customers' businesses and levels of business activity, including the effect of the current economic uncertainty and industry pressure on the spending decisions of the Company's customers. Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, security incidents, including breaches and cyberattacks to our systems and networks and those of our partners or customers, potential loss of a major customer, our ability to develop long-term relationships with our customers, our ability to successfully and effectively implement artificial intelligence and Generative AI in the Company's offerings and operations, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs' filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2025, filed on December 15, 2025, and for the first quarter of fiscal 2026 on February 17, 2026, and for the second quarter of fiscal 2026 on May 26, 2026.

Media Contacts

Mario Hajiloizi
Amdocs Public Relations
E-mail: [email protected]

SOURCE: Amdocs Management Limited

aOS, Amdocs' agentic operating system for telco, will help modernize Lumen's enterprise service orchestration and order management platform on AWS, accelerating service innovation

JERSEY CITY, NJ / ACCESS Newswire / August 5, 2026 / Amdocs (NASDAQ:DOX), a leading provider of software and services to communications and media companies, today announced the next phase of its cloud modernization collaboration with Lumen Technologies. Building on successful migrations to Google Cloud and Microsoft Azure, Amdocs will now leverage aOS, its agentic operating system purpose-built for telecommunications, and AI-driven modernization capabilities to accelerate the transformation of Lumen's enterprise service orchestration and order management platform on Amazon Web Services (AWS), further expanding the multi-cloud collaboration.

The engagement supports Lumen's cloud-first strategy by creating a resilient multi-cloud environment spanning AWS, Microsoft Azure and Google Cloud. The modernization will establish a cloud-native architecture that provides a scalable foundation for next-generation service delivery and future innovation. By increasing automation across service orchestration and order management, the transformation is expected to reduce manual operational effort, accelerate time-to-market for new services, and improve cycle times, SLA performance, and zero-touch operations, while preparing the platform for future AI-driven operations.

Under the collaboration, Amdocs will apply its agentic, AI-enabled migration capabilities through aOS to automate solution assessment, customization analysis, and migration planning, to support simplifying and accelerating the transformation to AWS. This AI-driven approach is designed to reduce effort, accelerate delivery, and enable a faster, more predictable transition to a cloud-native architecture, compressing critical assessment and planning activities from months to days.

"By expanding our multi-cloud strategy and modernizing our core service orchestration platform, we are building a more agile, resilient and AI-ready foundation that enables us to deliver greater value to our customers while driving future innovation and accelerating the modernization of a critical service orchestration platform that supports our business operations," said Chad Naeger, Chief Information Officer at Lumen Technologies.

"Extending our collaboration with Amdocs to include AWS workloads marks another important milestone in our cloud-first transformation journey," said Sulabh Sood, Vice President of Cloud Transformation at Lumen Technologies.

"The expansion of our collaboration with Lumen reflects the strength of the partnership we've built together, and the confidence earned through successful cloud modernization initiatives," said Anthony Goonetilleke, Group President of Technology and Head of Strategy, Amdocs. "By extending our work to another mission-critical platform on AWS, and leveraging modernization agents to accelerate migration, we're able to focus on reducing delivery risks, help Lumen realize business outcomes faster, and establish a scalable foundation for continued innovation."

Supporting Resources

Learn more about aOS, here

Keep up with Amdocs news by visiting the company's website

Follow us on X, Facebook, LinkedIn, and YouTube

About Amdocs

Amdocs helps the world's leading communications and media companies deliver exceptional customer experiences through reliable, efficient, and secure operations at scale. We provide software products and services that embed intelligence into how work runs across business, IT, and network domains - delivering measurable outcomes in customer experience, network performance, cloud modernization, and revenue growth. With our talented people, and more than 40 years of experience running mission-critical systems around the globe, Amdocs runs billions of transactions daily. Our technology is relied on every day, connecting people worldwide and advancing a more inclusive, connected world. Together, we help those who shape the future to make it amazing. Amdocs is listed on the NASDAQ Global Select Market (NASDAQ: DOX) and reported revenue of $4.53 billion in fiscal 2025. For more information, visit www.amdocs.com.

Amdocs' Forward-Looking Statement

This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters and years. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general macroeconomic conditions, prevailing level of macroeconomic, business and operational uncertainty, including as a result of geopolitical events or other regional events or pandemics, changes to trade policies including tariffs and trade restrictions, as well as the current inflationary environment, and the effects of these conditions on the Company's customers' businesses and levels of business activity, including the effect of the current economic uncertainty and industry pressure on the spending decisions of the Company's customers. Amdocs' ability to grow in the business markets that it serves, Amdocs' ability to successfully integrate acquired businesses, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, security incidents, including breaches and cyberattacks to our systems and networks and those of our partners or customers, potential loss of a major customer, our ability to develop long-term relationships with our customers, our ability to successfully and effectively implement artificial intelligence and Generative AI in the Company's offerings and operations, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future; however, Amdocs specifically disclaims any obligation to do so. These and other risks are discussed at greater length in Amdocs' filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2025, filed on December 15, 2025, and for the first quarter of fiscal 2026 on February 17, 2026, and for the second quarter of fiscal 2026 on May 26, 2026.

Media Contacts

Swati Sharma
Amdocs Public Relations
E-mail: [email protected]

SOURCE: Amdocs Management Limited

Howard Hughes® closes approximately $2.1 billion acquisition of Vantage, establishing specialty insurance and reinsurance as a second operating platform August 05, 2026 16:01 ET  | Source: Howard Hughes Holdings Inc.

THE WOODLANDS, Texas, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Howard Hughes Holdings Inc. (NYSE: HHH) (the “Company,” “HHH,” “Howard Hughes,” or “we”) today reported second quarter 2026 results, highlighted by the June 4 closing of Vantage Group Holdings, Ltd. (Vantage), a specialty insurance and reinsurance company. The Vantage acquisition reshapes Howard Hughes into a diversified holding company powered by two principal operating platforms: Howard Hughes Communities™ and Vantage.

Second Quarter 2026 Highlights:

Net income attributable to common stockholders was $158.4 million for the quarter, compared to a net loss of $12.1 million in the prior-year period.Vantage acquisition closed June 4, 2026. Through its wholly owned subsidiary Howard Hughes Insurance Holdings, LLC, the Company completed the acquisition of 100% of Vantage Group Holdings, Ltd. for cash consideration of approximately $2.1 billion. Consolidated results include Vantage only for the stub period from June 4, 2026 through June 30, 2026. Accordingly, period-over-period and sequential comparisons, including total revenues, net income attributable to common stockholders, and earnings per share, are not comparable to prior periods and do not reflect run-rate performance.$1.0 billion of preferred stock issued to Pershing Square. On June 4, 2026, the Company issued and sold $1.0 billion of Series A Non-Voting Exchangeable Perpetual Preferred Stock to an affiliate of Pershing Square to partially fund the Vantage acquisition and to provide additional capital to Vantage. The preferred stock carries no current cash dividend and may be repurchased by the Company pursuant to its terms.Insurance platform's initial contribution. For the stub period, Vantage contributed $97.2 million of net earned insurance premiums, $4.7 million of underwriting income, $11.0 million of net insurance investment income, and $20.8 million of loss before income taxes, with a combined ratio of 95% (loss ratio 57%; expense ratio 38%). These partial-period ratios are not indicative of expected full-year performance.The real estate platform delivered Master Planned Communities (MPC) EBT of $134.7 million and Total Operating Assets Net Operating Income (NOI) of $70.5 million in the quarter. Segment detail and prior-year comparisons are presented in Financial Highlights below.Strong liquidity position of $2,648.0 million of cash and cash equivalents, including cash held at Vantage, $515.0 million of undrawn capacity on the Secured Bridgeland Notes, $1.0 billion of undrawn lender commitments available for property development, and limited near-term debt maturities, all as of June 30, 2026. Financial Highlights

Real Estate

MPC

MPC EBT of $134.7 million in the second quarter, up 32% from $102.4 million in the prior-year period. Pricing also remained strong during the first six months of 2026, with Howard Hughes Communities selling 206.7 residential acres at an average price of $1.2 million per acre and 9.8 commercial acres at an average price of $0.9 million per acre. Operating Assets

Total Operating Assets NOI, including contributions from unconsolidated ventures, continued to grow, increasing by $1.7 million, or 2% to a total of $70.5 million in the quarter compared to $68.9 million in the prior-year period.In June 2026, Howard Hughes Communities sold Creekside Park and Creekside Park The Grove in The Woodlands for $127.3 million, generating $30.2 million of net proceeds after loan payoffs and closing costs. Over the life of the investments, the asset generated approximately $45 million of cumulative cash flow and an outsized project-level IRR. Strategic Developments

Howard Hughes Communities completed construction of The Park Ward Village and closed sales of 97% of its units during the quarter, generating $226.6 million of net proceeds after repayment of debt. Insurance and Reinsurance

Insurance and Reinsurance figures reflect the stub period from the acquisition date of June 4, 2026 through June 30, 2026, and include the impact of Purchase Accounting. As a result, they are not indicative of run-rate performance. 

Net earned insurance premiums were $97.2 million for the stub period from June 4, 2026 through June 30, 2026.Underwriting income was $4.7 million, with a combined ratio of 95%, comprising a loss ratio of 57% and an expense ratio of 38%. These partial-period ratios are not indicative of expected full-year performance.Net insurance investment income was $11.0 million.Net loss before income taxes was $20.8 million. Conference Call & Webcast Information

Howard Hughes Holdings Inc. will host its second quarter 2026 earnings conference call on Thursday, August 6, 2026, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). A live webcast will be available in the Events & Webcast section of the Company’s investor relations website. Participants who wish to ask questions by telephone should preregister using HHH’s earnings call registration webpage. All registrants will receive dial-in information and a PIN allowing them to access the live call. An on-demand replay of the earnings call will be available on the Company’s website immediately after the call for a period of one year.

About Howard Hughes Holdings Inc.

Howard Hughes Holdings Inc. (NYSE: HHH) is a diversified holding company focused on growing long-term shareholder value. Its principal subsidiaries are Vantage Group Holdings, a leading specialty insurance, reinsurance, and partnership capital platform, and Howard Hughes Communities™, one of the nation’s leading real estate platforms. HHH brings together long-duration capital, high-quality operating businesses, and disciplined capital allocation to build long-term value. For additional information visit www.howardhughes.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (Exchange Act). We intend these statements to be covered by the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements give our current expectations relating to our financial condition, results of operations, plans, objectives, future performance, or business, and are not guarantees of performance. These statements may include words such as “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “plan,” “project,” “realize,” “should,” “transform,” “will,” “would,” and other statements of similar expression. Forward-looking statements should not be relied upon, and actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict, some of which include: (i) our ability to realize the anticipated benefits of the transactions with Pershing Square and our strategy of becoming a diversified holding company; (ii) our ability to identify and consummate transactions as part of our strategy of becoming a diversified holding company; (iii) risks inherent in acquiring or making investments in operating companies, especially companies in industries unrelated to our existing real estate business; (iv) our ability to integrate Vantage’s insurance and reinsurance business into our operations, and realize the financial and strategic benefits currently anticipated from such acquisition; (v) our ability to realize the anticipated benefits of recent transactions, including the May 2025 transactions with Pershing Square and the spinoff of Seaport Entertainment Group Inc. in 2024; (vi) macroeconomic conditions such as volatility in capital markets, unstable economic and political conditions within the U.S. and foreign jurisdictions, geopolitical conflicts, and a prolonged recession in the national economy impacting the real estate and insurance and reinsurance businesses, including but not limited to inflation and changes in interest rates; (vii) changes in trade policies, including tariffs, and related impacts on market conditions and business activity; (viii) our inability to obtain operating and development capital for our properties, including our inability to obtain or refinance debt capital from lenders and the capital markets; (ix) our ability to compete effectively, including the potential impact of heightened competition for tenants and potential decreases in occupancy at our properties; (x) extreme weather conditions, climate change, natural disasters, pandemics or other catastrophes, that may cause property damage or interrupt our real estate or insurance or reinsurance business; (xi) losses that are not insured or exceed the applicable insurance limits as well as insufficient reserves for losses; (xii) increased construction costs exceeding our original estimates, delays or overruns, claims for construction defects, or other factors affecting our ability to develop, redevelop or construct our properties; (xiii) regulation of the portions of our business that are dedicated to the formation and sale of condominiums or insurance and reinsurance, as applicable, including obtaining government permits necessary for the development of our properties; (xiv) fluctuations in regional and local economies, the impact of changes in interest rates on residential housing and condominium markets, local real estate conditions, tenant rental rates, and competition from competing retail properties and the internet; (xv) insufficient reserves for insurance claims and claim expenses due to the impact of social inflation or other factors; (xvi) greater-than-expected loss ratios on business written by Vantage; (xvii) Vantage’s ability to accurately assess underwriting risk and establish adequate premium rates; (xviii) decreases in pricing for property and casualty reinsurance and insurance; (xix) Vantage’s ability to purchase adequate reinsurance; (xx) Vantage’s ability to maintain financial strength ratings; (xxi) material variation of analytical models used in decision making from actual results; (xxii) Vantage’s ability to comply with insurance and tax laws and regulations and other regulatory challenges, including to obtain licenses or admittance in additional jurisdictions to develop its business; (xxiii) inherent risks related to disruption of information technology networks and related systems, including cyber security attacks on us or our vendors; (xxiv) our indebtedness, including our $650,000,000 4.125% senior unsecured notes due 2029, $650,000,000 4.375% senior unsecured notes due 2031, $500,000,000 5.875% senior unsecured notes due 2032, and $500,000,000 6.125% senior unsecured notes due 2034, contain restrictions that may limit our ability to operate our business; (xxv) our directors’ involvement or interests in other businesses, including real estate activities and investments; (xxvi) our dependence on the operations and funds of our subsidiaries, including The Howard Hughes Corporation and Vantage; and (xxvii) other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in our other reports and other public filings with the SEC, including the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2026. Copies of each filing may be obtained from the Company or the Securities and Exchange Commission. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise forward-looking statements unless otherwise required by law.

Non-GAAP Financial Measures

As discussed throughout this release, we use certain non-GAAP performance measures, in addition to the required GAAP presentations, as we believe these measures improve the understanding of our operational results and make comparisons of operating results among peer companies more meaningful. We continually evaluate the usefulness, relevance, limitations, and calculation of our reported non-GAAP performance measures to determine how best to provide relevant information to the public, and thus such reported measures could change. Non-GAAP financial measures should not be considered independently, or as a substitute, for financial information presented in accordance with GAAP. A non-GAAP financial measure used throughout this release is net operating income (NOI). We provide a more detailed discussion about this non-GAAP measure and a reconciliation to the most directly comparable GAAP measure in the appendix to this earnings release. The financial statements, exhibits, and Supplemental Information referenced in this release are available in the attached Appendix and through the Investors section of our website.

Investor Relations:

[email protected]
281-929-7700

Media Relations:

[email protected]
281-929-7700

    HOWARD HUGHES HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED     Three Months Ended June 30, Six Months Ended June 30,thousands except per share amounts 2026   2025   2026   2025 REVENUES       Condominium rights and unit sales$        706,311  $        193  $        709,445  $        535 Master Planned Communities land sales         170,936           125,041           270,509           196,683 Rental revenue         114,198           111,092           227,747           219,505 Net earned insurance premiums         97,247           —           97,247           — Net insurance investment income         10,988           —           10,988           — Builder price participation         6,868           14,138           15,550           23,425 Other revenues         15,779           10,416           26,758           20,060 Total revenues         1,122,327           260,880           1,358,244           460,208         EXPENSES       Condominium rights and unit cost of sales         575,389           811           578,523           1,053 Master Planned Communities cost of sales         59,057           45,178           93,799           70,392 Operating costs         54,723           50,518           107,756           101,307 Rental property real estate taxes         14,798           15,365           31,026           30,664 Insurance claims and claim expenses         55,210           —           55,210           — Insurance underwriting expenses         37,381           —           37,381           — Provision for (recovery of) doubtful accounts         123           542           64           386 General and administrative         36,136           34,552           61,894           56,988 Depreciation and amortization         56,609           44,325           105,249           89,464 Other expenses         6,173           4,273           10,065           9,070 Total expenses         895,599           195,564           1,080,967           359,324         OTHER       Gain (loss) on sale or disposal of real estate and other assets, net         51,800           1,656           51,800           15,385 Investment gain (loss), net         (38,278)          —           (38,278)          — Other income (loss), net         (660)          885           (533)          (482)Total other         12,862           2,541           12,989           14,903         Operating income (loss)         239,590           67,857           290,266           115,787         Interest income         13,803           10,331           28,466           16,449 Interest expense         (45,812)          (43,694)          (87,602)          (84,788)Gain (loss) on extinguishment of debt         (413)          (307)          (10,639)          (307)Gain (loss) on sale of MUD receivables         (555)          (48,197)          (555)          (48,197)Equity in earnings (losses) from unconsolidated ventures         301           (1,887)          (2,339)          (567)Income (loss) before income taxes         206,914           (15,897)          217,597           (1,623)Income tax expense (benefit)         49,957           (3,821)          52,575           (385)Net income (loss)         156,957           (12,076)          165,022           (1,238)Net (income) loss attributable to noncontrolling interests         1,408           (68)          1,569           (373)Net income (loss) attributable to common stockholders$        158,365  $        (12,144) $        166,591  $        (1,611)        Basic income (loss) per share$        2.68  $        (0.22) $        2.82  $        (0.03)Diluted income (loss) per share$        2.68  $        (0.22) $        2.82  $        (0.03)     HOWARD HUGHES HOLDINGS INC.
CONSOLIDATED BALANCE SHEETS
UNAUDITED    thousands except par values and share amounts June 30, 2026 December 31, 2025ASSETS   Master Planned Communities assets$        2,646,774  $        2,635,077 Buildings and equipment         4,031,804           4,028,862 Less: accumulated depreciation         (1,117,166)          (1,082,124)Land         335,872           307,625 Developments         1,072,034           1,477,615 Net investment in real estate         6,969,318           7,367,055 Investments in fixed maturity securities         246,583           — Investments in equity securities         1,077,535           — Short-term investments         27,822           — Investments in unconsolidated ventures         186,153           170,122 Cash and cash equivalents         2,647,959           1,468,507 Restricted cash         717,395           628,651 Accounts receivable, net         940,400           134,122 Municipal Utility District (MUD) receivables, net         579,160           459,729 Reinsurance recoverable on paid and unpaid losses         601,602           — Deferred expenses, net         175,243           160,966 Intangibles, net         586,439           34,658 Goodwill         282,218           2,336 Other assets, net         872,216           213,315 Total assets$        15,910,043  $        10,639,461     LIABILITIES   Mortgages, notes, and loans payable, net$        5,456,403  $        5,109,828 Reserves for claims and claim expenses         2,115,416           — Unearned premiums         1,406,691           — Deferred tax liabilities, net         223,113           164,472 Other liabilities, net         1,678,683           1,522,915 Total liabilities         10,880,306           6,797,215     MEZZANINE EQUITY   Series A non-voting exchangeable perpetual preferred stock: $0.01 par value; 140,000 issued and outstanding as of June 30, 2026, and none issued or outstanding as of December 31, 2025         995,764           —     EQUITY   Preferred stock: $0.01 par value; 50,000,000 shares authorized; 140,000 shares designated as Series A Preferred Stock; no other shares issued or outstanding         —           — Common stock: $0.01 par value; 150,000,000 shares authorized, 66,253,546 issued, and 59,657,062 outstanding as of June 30, 2026, 65,910,640 shares issued, and 59,370,353 outstanding as of December 31, 2025         663           659 Additional paid-in capital         4,478,286           4,458,838 Retained earnings (accumulated deficit)         104,495           (62,096)Accumulated other comprehensive income (loss)         1,544           (1,827)Treasury stock, at cost, 6,596,484 shares as of June 30, 2026, and 6,540,287 shares as of December 31, 2025 (624,592)  (620,118)Total stockholders' equity 3,960,396   3,775,456 Noncontrolling interests         73,577   66,790 Total equity 4,033,973   3,842,246 Total liabilities, mezzanine equity, and equity$        15,910,043  $        10,639,461 
Segment Earnings Before Taxes (EBT)

Howard Hughes Communities has three real estate business segments, Operating Assets, MPC, and Strategic Developments. EBT, as it relates to each business segment, includes the revenues and expenses of each segment, as shown below. EBT excludes corporate expenses and other items that are not allocable to the segments.

 Three Months Ended June 30, Six Months Ended June 30,thousands except percentages 2026   2025  $ Change  2026   2025  $ ChangeOperating Assets Segment EBT           Total revenues$        119,960  $        116,446  $        3,514  $        239,162  $        230,448  $        8,714 Total operating expenses         (50,520)          (49,467)          (1,053)          (101,445)          (98,284)          (3,161)Segment operating income (loss)         69,440           66,979           2,461           137,717           132,164           5,553 Depreciation and amortization         (52,028)          (42,305)          (9,723)          (97,606)          (85,428)          (12,178)Interest income (expense), net         (37,873)          (34,173)          (3,700)          (71,380)          (68,391)          (2,989)Other income (loss), net         (527)          634           (1,161)          (508)          438           (946)Equity in earnings (losses) from unconsolidated ventures         794           (325)          1,119           6,671           4,318           2,353 Gain (loss) on sale or disposal of real estate and other assets, net         51,800           (1)          51,801           51,800           9,978           41,822 Gain (loss) on extinguishment of debt         (413)          (307)          (106)          (413)          (307)          (106)Operating Assets segment EBT$        31,193  $        (9,498) $        40,691  $        26,281  $        (7,228) $        33,509             Master Planned Communities Segment EBT           Total revenues$        181,740  $        143,701  $        38,039  $        294,021  $        228,155  $        65,866 Total operating expenses         (70,390)          (57,694)          (12,696)          (118,267)          (95,899)          (22,368)Segment operating income (loss)         111,350           86,007           25,343           175,754           132,256           43,498 Depreciation and amortization         (110)          (88)          (22)          (175)          (199)          24 Interest income (expense), net         24,012           18,107           5,905           45,724           34,893           10,831 Other income (loss), net         —           35           (35)          1,860           35           1,825 Equity in earnings (losses) from unconsolidated ventures         (569)          (1,649)          1,080           (4,104)          (5,059)          955 Gain (loss) on sale or disposal of real estate and other assets, net         —           —           —           —           3,750           (3,750)MPC segment EBT$        134,683  $        102,412  $        32,271  $        219,059  $        165,676  $        53,383             Strategic Developments Segment EBT           Total revenues$        707,432  $        714  $        706,718  $        711,839  $        1,568  $        710,271 Total operating expenses         (582,986)          (5,186)          (577,800)          (591,075)          (9,552)          (581,523)Segment operating income (loss)         124,446           (4,472)          128,918           120,764           (7,984)          128,748 Depreciation and amortization         (2,068)          (1,076)          (992)          (4,125)          (2,234)          (1,891)Interest income (expense), net         4,097           4,633           (536)          9,071           9,279           (208)Other income (loss), net         —           132           (132)          (889)          (1,130)          241 Equity in earnings (losses) from unconsolidated ventures         76           87           (11)          (4,906)          174           (5,080)Gain (loss) on sale or disposal of real estate and other assets, net         —           1,657           (1,657)          —           1,657           (1,657)Strategic Developments segment EBT$        126,551  $        961  $        125,590  $        119,915  $        (238) $        120,153                                                 Appendix – Reconciliation of Non-GAAP Measures
Below are GAAP to non-GAAP reconciliations of certain financial measures, as required under Regulation G promulgated by the Securities and Exchange Commission. Non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. The non-GAAP financial information presented may be determined or calculated differently by other companies and may not be comparable to similarly titled measures.

Net Operating Income (NOI)

We define NOI as operating revenues (rental income, tenant recoveries, and other revenue) less operating expenses (real estate taxes, repairs and maintenance, marketing, and other property expenses). NOI excludes straight-line rents and amortization of tenant incentives, net; interest expense, net; ground rent amortization; demolition costs; other income (loss); depreciation and amortization; development-related marketing costs; gain on sale or disposal of real estate and other assets, net; loss on extinguishment of debt; provision for impairment; and equity in earnings from unconsolidated ventures. This amount is presented as Operating Assets NOI throughout this document. Total Operating Assets NOI represents NOI as defined above with the addition of our share of NOI from unconsolidated ventures.

We believe that NOI is a useful supplemental measure of the performance of our Operating Assets segment because it provides a performance measure that reflects the revenues and expenses directly associated with owning and operating real estate properties. We use NOI to evaluate our operating performance on a property-by-property basis because NOI allows us to evaluate the impact that property-specific factors such as rental and occupancy rates, tenant mix, and operating costs have on our operating results, gross margins, and investment returns.

A reconciliation of segment EBT to NOI for Operating Assets is presented in the table below:

 Three Months Ended June 30, Six Months Ended June 30,thousands 2026   2025  $ Change  2026   2025  $ ChangeOperating Assets Segment           Total revenues$        119,960  $        116,446  $        3,514  $        239,162  $        230,448  $        8,714 Total operating expenses         (50,520)          (49,467)          (1,053)          (101,445)          (98,284)          (3,161)Segment operating income (loss)         69,440           66,979           2,461           137,717           132,164           5,553 Depreciation and amortization         (52,028)          (42,305)          (9,723)          (97,606)          (85,428)          (12,178)Interest income (expense), net         (37,873)          (34,173)          (3,700)          (71,380)          (68,391)          (2,989)Other income (loss), net         (527)          634           (1,161)          (508)          438           (946)Equity in earnings (losses) from unconsolidated ventures         794           (325)          1,119           6,671           4,318           2,353 Gain (loss) on sale or disposal of real estate and other assets, net         51,800           (1)          51,801           51,800           9,978           41,822 Gain (loss) on extinguishment of debt         (413)          (307)          (106)          (413)          (307)          (106)Operating Assets segment EBT         31,193           (9,498)          40,691           26,281           (7,228)          33,509 Add back:           Depreciation and amortization         52,028           42,305           9,723           97,606           85,428           12,178 Interest (income) expense, net         37,873           34,173           3,700           71,380           68,391           2,989 Equity in (earnings) losses from unconsolidated ventures         (794)          325           (1,119)          (6,671)          (4,318)          (2,353)(Gain) loss on sale or disposal of real estate and other assets, net         (51,800)          1           (51,801)          (51,800)          (9,978)          (41,822)(Gain) loss on extinguishment of debt         413   307   106           413           307           106 Impact of straight-line rent         (1,015)          (373)          (642)          (3,637)          (1,533)          (2,104)Other         600           (384)          984           585           (195)          780 Operating Assets NOI         68,498           66,856           1,642           134,157           130,874           3,283             Company's share of NOI from equity investments         2,045           2,004           41           4,217           3,947           270 Distributions from Summerlin Hospital investment         —           —           —           5,318           5,605           (287)Company's share of NOI from unconsolidated ventures         2,045           2,004           41           9,535           9,552           (17)Total Operating Assets NOI$        70,543  $        68,860  $        1,683  $        143,692  $        140,426  $        3,266 

DALLAS--(BUSINESS WIRE)--Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) today reported financial and operating results for the second quarter of 2026, updated full-year 2026 production guidance and provided an update on the four strategic catalysts, which were executed during and shortly after the quarter. A slide presentation summarizing the highlights of this release is included on the Company’s website at www.matadorresources.com on the Events and Presentations page under the Investor Relations tab.

Management Summary Comments

Joseph Wm. Foran, Matador’s Founder, Chairman and CEO, commented, “The second quarter of 2026 was, in our view, one of the most consequential quarters in Matador’s history—not only for what we produced, but also for what we acquired and put in place for the years ahead.

“During the quarter, despite external headwinds and associated oil volume shut-ins, Matador exceeded its expected range for oil production (123,000 to 125,000 barrels of oil per day) and delivered record average oil production of 126,106 barrels of oil per day. On the strength of this performance, we have increased our full-year 2026 outlook for oil from 4% growth up to 7% year-over-year oil production growth. In addition, Matador grew its total proved oil and natural gas reserves 5%, from 667 million barrels of oil equivalent (‘BOE’) at December 31, 2025 to a record 703 million BOE at June 30, 2026. The Company also generated net cash provided by operating activities of $937.1 million, leading to near-record adjusted free cash flow of $303.2 million during the second quarter of 2026, nearly tripling first quarter 2026 adjusted free cash flow of $113.3 million. This cash flow generation allowed Matador to repay over $200 million of borrowings associated with the Federal lease sale in May 2026.

Strategic Transformational Acquisitions

“We successfully executed on four of our strategic catalysts during the first half of 2026 including:

May 2026, Federal Lease Sale. Acquired 5,154 net undeveloped acres located in what we believe to be the most prolific areas of the Delaware Basin with nine or more prospective formations and added over 141 net operated locations.
June/July 2026, Cardinal Midstream Acquisition. San Mateo acquired Cardinal Midstream, which adds complementary midstream assets including (i) a cryogenic natural gas processing plant complex in Loving County, Texas with a designed inlet capacity of approximately 320 million cubic feet of natural gas per day and (ii) approximately 145 miles of low-pressure and high-pressure natural gas gathering pipelines located in West Texas and southern Eddy County, New Mexico. This transaction, which closed on July 31, adds third-party customer relationships, volumes, and expanded scale and enhances flow assurance for Matador and San Mateo’s third-party customers.
July 2026, Paloma Acquisition. Entered into an agreement to acquire Paloma Permian, LLC, including 16,235 net primarily undeveloped acres located in the core of the Delaware Basin in Southeast New Mexico. The majority of this acreage is held by production and adds over 156 net operated locations. The acquisition also includes third quarter 2026 estimated production of approximately 11,100 BOE per day (57% oil) and immediate reserve additions of 55 million BOE.
July 2026, Ridge Runner Acquisition. Entered into an agreement to acquire 13,600 net acres in the emerging Woodford play of the Delaware Basin from Ridge Runner Resources. Once closed, Matador’s total Woodford acreage position will be approximately 50,000 net contiguous, undeveloped acres acquired at approximately $4,000 per acre. This emerging play is substantiated by Matador’s successful Woodford exploration well, the ‘Rae’s Creek,’ which achieved test rates exceeding 2,200 BOE per day (72% oil). Overall, this acquisition combined with Matador’s previous ‘brick-by-brick’ acquisitions in the Woodford formation add approximately 150 net operated locations “In total, once the Paloma and Ridge Runner transactions are completed, which is expected to occur in the fourth quarter of 2026, Matador will have successfully added approximately four additional years of high-quality drilling inventory based on current activity levels. We expect this newly acquired inventory to immediately compete for capital within our portfolio and provide depth to Matador’s future operating plans in 2027 and beyond.

Acquisition Value Creation

“There are many reasons we are excited about the recent catalysts and the announced acquisitions, but we want to highlight for our shareholders and bondholders the primary drivers for these additions:

Capital efficiency on costs. Matador expects future well costs associated with the Federal lease sale and Paloma acquisition will be 15% to 20% below Matador’s current drilling and completion cost per completed lateral foot average. For example, due to reduced drilling times, extended laterals, and multi-well completions, we expect Matador’s third quarter well costs on adjacent assets will be as low as $640 per completed lateral foot, as compared to Matador’s full year 2026 cost per completed lateral foot estimates of $795 per foot.
Productivity. We expect these lease additions to improve Matador’s well productivity profile and contribute to Matador’s growing reserve base. In fact, on assets associated with the Federal lease sale and Paloma acquisition, we expect average 12-month cumulative oil production will be 20% to 30% higher than Matador’s average 12-month cumulative oil production for wells turned to sales in previous years. We also expect 15% to 20% improvement in estimated ultimate recoveries (‘EUR’) in barrel of oil per foot metrics compared to Matador inventory averages.
Revenue. Over 30% of expected inventory additions from the recently-announced transactions benefit from favorable lease terms—in particular, the larger 87.5% net royalty interest (‘NRI’) associated with the Federal leases compared to the smaller NRI interest of 75% normally set on many State and private fee leases. This larger 87.5% NRI increases free cash flow generation and increases net present value over 35% for each well versus similar wells at a lower 75% NRI. In addition, the vast majority of the approximate 450 net locations that will be added from the Federal lease sale and Paloma and Ridge Runner acquisitions have advantaged NRIs (greater than 75% NRI) for an average of 82% NRI.
Economics. Prior to the announcements of the Federal lease sale and Paloma and Ridge Runner acquisitions, Matador highlighted 10 to 15 years of inventory generating, on average, a 50% rate of return at $70 per barrel of oil and $3.00 per thousand cubic feet of natural gas. We expect our rates of return on the properties being acquired will exceed 80% on average, using similar price decks and capital assumptions.
Woodford. Early production results on Matador’s Rae’s Creek well have been encouraging. While we have yet to officially add proved, undeveloped reserves from our Rae’s Creek well, early results indicate oil EUR potential could be over 800,000 barrels. Additionally, we expect 30% to 40% well cost reductions over the next 12 to 18 months, targeting $800 to $900 per completed lateral foot on Woodford wells by 2028. Financing and Debt Repayment

“Matador’s acquisitions—the Federal lease sale, the Paloma acquisition and the Ridge Runner acquisition—will be funded through cash on hand and borrowings under Matador’s existing reserve-based lending (‘RBL’) credit facility. The RBL balance was fully repaid in May 2026. Our supportive bank group subsequently increased the elected commitment level by $500 million, bringing the elected commitment level under the RBL to $2.75 billion.

“Matador generated net cash provided by operating activities of $1.41 billion in the first half of 2026 as compared to $2.43 billion during full year 2025. During the first half of 2026, Matador generated $417 million of adjusted free cash flow, which is almost equal to the $437 million of adjusted free cash flow the Company generated during full year 2025. We currently estimate adjusted free cash flow for the full year 2026 will be approximately $900 million (assuming strip oil and natural gas pricing as of late July 2026), and we will continue to prioritize the use of free cash flow for debt repayment. We expect to be at or close to our 1.0x target leverage ratio by the end of 2027, funded primarily by free cash flow generation depending on commodity prices. Based on current market conditions, we do not anticipate needing to access the equity capital markets at this time.

Integrated Midstream and Marketing

“In addition to Matador’s upstream acquisitions, San Mateo closed on its acquisition of Cardinal Midstream on July 31, which we believe adds growth potential, scale and a diversified customer base for San Mateo. San Mateo’s new, fully integrated system now has over one billion cubic feet per day of designed natural gas processing capacity, placing it as the largest non-public natural gas processing company in the northern Delaware Basin by capacity. This acquisition highlights San Mateo’s ability to grow, using midstream capital to fund midstream expansion, and to provide ‘producer-first’ service to Matador and other customers with greater scale and reach in the Delaware Basin.

“Looking forward, we also continue to expect meaningful improvement in our realized natural gas prices for the remainder of the year. As previously disclosed, Matador secured, at no capital expense, 500,000 million British thermal units (‘MMBtu’) per day of firm natural gas transportation on Energy Transfer’s new Hugh Brinson pipeline. Matador anticipates flow on the Hugh Brinson earlier than previously expected by the end of the third quarter of 2026 and estimates that it will be able to add approximately $90 million annually in increased natural gas revenue for each $0.50 per MMBtu increase it is able to achieve in its average realized natural gas price.

Improved Full-Year 2026 Outlook

“Special appreciation to Matador’s exceptional operational team and field staff is warranted for navigating a difficult quarter, which included shut-in volumes due to negative Waha prices and third-party gathering and processing maintenance. Matador successfully managed these challenges and produced oil volumes exceeding the upper end of May 2026 guidance estimates for the quarter. These better-than-expected results are a testament of the strength and size of Matador’s production base, its operational execution in the field and the responsiveness and flow assurance of its midstream business. Matador is now expecting to increase the number of wells turned to sales in 2026, pushing net lateral footage turned to sales higher for the year and increasing full year production guidance.

“The increased positive outlook for 2026 also will result in accelerated activities and, combined with capital associated with the recent acquisitions discussed earlier, Matador now expects its full-year 2026 drilling, completing and equipping (‘D/C/E’) capital expenditures to be in the $1.48 to $1.56 billion range and midstream capital expenditures in the $145 to $165 million range. It is important to note that the majority of this incremental capital is associated with:

Working interest additions and accelerated wells turned to sales; Matador now estimates to turn-in-line 112.6 net operated wells, a 5% increase versus previous February 2026 guidance estimates of 107.6 net operated wells turned-in-line.
Increased non-operated activity; Matador now estimates to turn-in-line 15.9 net non-operated wells, a 33% increase versus previous February 2026 guidance estimates of 12.0 net non-operated wells.
Midstream infrastructure and integration; capital associated with infrastructure integration related to assets acquired in the Federal lease sale and the Cardinal Midstream acquisition. “Most importantly, I am pleased to report well-level capital discipline and efficiencies remain intact, with Matador’s overall costs per completed lateral foot expected to remain firm at $785 to $805 for 2026. The team also expects these ranges should improve in future years, as the recently announced acquisitions close and become integrated into Matador’s current activity plans going forward.

Closing Thoughts

“We remain focused on finishing 2026 on a strong note and look forward to the opportunities that lie ahead for Matador in 2026 and beyond. We believe our best days are still to come and that our recent acquisitions, operational accomplishments, midstream flow assurance and financial discipline have all helped place Matador in an excellent position for continued strong performance in the months and years ahead.”

All references to Matador’s net income, adjusted net income, Adjusted EBITDA and adjusted free cash flow reported throughout this earnings release are those values attributable to Matador Resources Company shareholders after giving effect to any net income, adjusted net income, Adjusted EBITDA or adjusted free cash flow, respectively, attributable to third-party non-controlling interests, including in San Mateo. Matador owns 51% of San Mateo. For a definition of adjusted net income, adjusted earnings per diluted common share, Adjusted EBITDA and adjusted free cash flow and reconciliations of such non-GAAP financial metrics to their comparable GAAP metrics, please see “Supplemental Non-GAAP Financial Measures” below.

Full-Year 2026 Guidance Update

Effective August 5, 2026, Matador increased its full-year 2026 guidance range for oil, natural gas and total BOE production as set forth in the table below.

Guidance Metric

Prior Full-Year 2026

Guidance Range

New Full-Year 2026

Guidance Range(4)

Oil Production, Bbl per day

123,000 to 125,000

127,500 to 129,000

Natural Gas Production, MMcf per day

525 to 545

546 to 567

Total Oil Equivalent Production, BOE per day

210,500 to 216,000

218,500 to 223,500

Total operating expenses per BOE(1)

$31.00 to $33.00

$32.00 to $34.00

Current income taxes (% of pretax income)

0% to 1%

No Change

D/C/E CapEx(2)

$1.35 to $1.44 billion

$1.48 to $1.56 billion

Midstream CapEx(3)

$100 to $110 million

$145 to $165 million

Total CapEx

$1.45 to $1.55 billion

$1.625 to $1.725 billion

(1) Includes estimated non-cash operating expenses in 2026 of $15.85 to $16.15 per BOE for DD&A and $0.20 to $0.30 per BOE for non-cash general and administrative (G&A) expenses, respectively.

(2) Capital expenditures associated with drilling, completing and equipping wells.

(3) Includes Matador’s share of estimated capital expenditures for San Mateo and other wholly-owned midstream projects.

(4) Includes production associated with the pending Paloma and Ridge Runner acquisitions that are expected to close in the fourth quarter of 2026, subject to customary closing conditions. Includes the Cardinal Midstream acquisition, which closed on July 31, 2026.

The 4% increase in the midpoint of Matador’s expected 2026 production from 213,250 BOE per day to 221,000 BOE per day is attributable to:

1,700 BOE per day (32% oil) from better-than-expected production in the second quarter of 2026 as detailed below,
3,550 BOE per day (64% oil) from organic improvements to expected production in the second half of 2026, and
2,500 BOE per day (57% oil) attributable to the Paloma and Ridge Runner acquisitions. Excluding the impact of these accretive acquisitions, Matador expects to achieve organic oil production growth of 6% year-over-year as compared to its original expectations of 3% growth. As noted previously, Matador is adjusting the midpoint of its 2026 D/C/E capital expenditure guidance from $1.395 billion in May 2026 to $1.52 billion and the midpoint of its 2026 midstream capital expenditure guidance from $105 million in May 2026 to $155 million. The midpoint of total capital expenditure expectations of $1.675 billion represents a 1% improvement as compared to total capital expenditures of $1.694 billion in 2025. Notably, Matador has not made any revisions to its 2026 drilling and completion costs per foot estimates, which remain at $785 to $805 per completed lateral foot.

Operational and Financial Update

Second Quarter 2026 Oil, Natural Gas and Total BOE Production

As summarized in the table below, Matador’s total BOE production averaged 215,631 BOE per day in the second quarter of 2026, which was a 3% year-over-year increase from an average of 209,013 BOE per day in the second quarter of 2025 and 3% better than the midpoint of Matador’s expected second quarter production guidance of 209,000 BOE per day. The better-than-expected oil and natural gas production was primarily due to outperformance of Matador’s new wells that were turned to sales in the first half of the year, including Matador’s first 3.4-mile lateral wells as part of a 13-well batch drilled on the Guss pad on our Eastern Antelope Ridge acreage. This better-than-expected performance was achieved despite approximately 9,900 BOE per day (24% oil) shut in during the quarter due to the elective shut-in of volumes due to weak Waha pricing and scheduled maintenance on third-party treatment plants. Matador had estimated these elective Waha shut-ins and scheduled maintenance would reduce second quarter 2026 volumes by approximately 10,000 BOE per day (30% oil). The Company turned to sales 23.7 net operated wells in the second quarter of 2026, including the 13 Guss wells noted above.

Production

Q2 2026

Average Daily

Volume

Q2 2026

Guidance

Range

Difference

YoY(1)

Total, BOE per day

215,631

206,000 to 212,000

+3% Better than Guidance

+3%

Oil, Bbl per day

126,106

123,000 to 125,000

+2% Better than Guidance

+3%

Natural Gas, MMcf per day

537.1

498.0 to 522.0

+5% Better than Guidance

+4%

(1) Represents year-over-year percentage change from the second quarter of 2025.

Second Quarter 2026 Realized Commodity Prices

The following table summarizes Matador’s realized commodity prices during the second quarter of 2026, as compared to the first quarter of 2026 and the second quarter of 2025.

Sequential (Q2 2026 vs. Q1 2026)

YoY (Q2 2026 vs. Q2 2025)

Realized Commodity Prices

Q2 2026

Q1 2026

Sequential

Change

Q2 2026

Q2 2025

YoY

Change

Oil Prices, per Bbl

$98.16

$72.83

+35%

$98.16

$64.34

+53%

Natural Gas Prices, per Mcf

$(0.79)

$0.64

-223%

$(0.79)

$2.05

-139%

Second Quarter 2026 Operating Expenses

For the second quarter of 2026, operating expenses of $32.90 per BOE were at the high end of Matador’s expected 2026 guidance range of $31.00 to $33.00 per BOE, primarily due to higher non-cash depletion, depreciation and amortization expenses (“DD&A”) of $16.06 per BOE, as compared to expectations of $15.65 per BOE, primarily due to the booking of proved undeveloped reserves from the May 2026 Federal lease sale. Notably, however, lease operating expenses (“LOE”) of $5.45 per BOE were better than expectations of $5.60 per BOE primarily due to lower-than-expected repair and maintenance costs.

The increase in expectations for 2026 operating expenses from approximately $32.00 per BOE in May to $33.00 per BOE is primarily driven by the increase in non-cash DD&A noted above and an increase in midstream services operating expenses associated with the Cardinal Midstream acquisition.

Second Quarter 2026 Capital Expenditures

For the second quarter of 2026, Matador’s total capital expenditures were $436.1 million, which was near the low end of the expected range of $430 to $460 million.

Q2 2026 Capital Expenditures

($ millions)

Actual

May 2026

Guidance

D/C/E

$411.6

Midstream

$24.5

Total

$436.1

$430 to $460

  Shareholder Returns Update

During the second quarter of 2026, Matador repurchased 225,000 shares of its common stock at a weighted average price of approximately $49.59 per share for a total of $11 million. Matador’s Board of Directors, management, and staff also continue to be regular purchasers of Matador’s shares in the open market, further aligning ourselves with our shareholders. Matador’s directors and executive officers purchased approximately 13,000 shares of Matador stock during the second quarter of 2026. In addition, over 95% of Matador employees continued to participate in Matador’s Employee Share Purchase Plan, or ESPP.

Midstream Update

Matador’s midstream assets include (1) San Mateo, which is owned 51% by Matador and 49% by Five Point Infrastructure LLC (“Five Point”), and (2) wholly-owned assets, which were largely acquired as part of the Advance acquisition in 2023 and the Ameredev acquisition in 2024. San Mateo distributed $30.1 million to Matador during the second quarter of 2026. On a combined basis, San Mateo and Matador’s wholly-owned midstream assets had quarterly net income of $57.9 million and quarterly Adjusted EBITDA of $89.9 million in the second quarter of 2026. The table below sets forth San Mateo’s throughput volumes for the second quarter of 2026, as compared to the first quarter of 2026 and second quarter of 2025.

Sequential (Q2 2026 vs. Q1 2026)

YoY (Q2 2026 vs. Q2 2025)

San Mateo Throughput Volumes

Q2 2026

Q1 2026

Sequential

Change

Q2 2026

Q2 2025

YoY

Change

Natural gas gathering, MMcf per day

577

530

+9%

577

491

+18%

Natural gas processing, MMcf per day

552

510

+8%

552

486

+14%

Oil gathering and transportation, Bbl per day

41,600

45,700

-9%

41,600

50,300

-17%

Produced water handling, Bbl per day

343,400

381,600

-10%

343,400

414,400

-17%

  Third Quarter 2026 Estimates

Third Quarter 2026 Estimated Oil, Natural Gas and Total BOE Production Growth

As noted in the table below, Matador anticipates sequential oil production growth of approximately 3% to a quarterly record of approximately 129,500 barrels per day in the third quarter of 2026, primarily as a result of the 13 Guss wells and the 30 to 33 net operated horizontal wells Matador expects to turn to sales in the Delaware Basin during the third quarter of 2026. These third quarter estimates do not include oil or natural gas volumes associated with the Paloma or the Ridge Runner acquisitions, which are expected to close in the fourth quarter of 2026. The Company expects sequential production growth of approximately 5% to 6% in the fourth quarter of 2026, primarily as a result of the Paloma and Ridge Runner acquisitions, which are expected to contribute approximately 10,000 BOE per day (57% oil) in the fourth quarter.

Q2 and Q3 2026 Production Comparison

Period

Average Daily

Total Production,

BOE per day

Average Daily

Oil Production,

Bbl per day

Average Daily

Natural Gas Production,

MMcf per day

% Oil

Q2 2026

215,631

126,106

537.1

58%

Q3 2026E

222,000 to 226,000

128,500 to 130,500

561.0 to 573.0

58%

Third Quarter 2026 Estimated Wells Turned to Sales

At August 5, 2026, Matador expects to turn to sales 30 to 33 net operated horizontal wells in the Delaware Basin during the third quarter of 2026, including 11.3 net wells near acreage acquired in the May 2026 Federal lease sale.

Third Quarter 2026 Estimated Capital Expenditures

Matador expects D/C/E and midstream capital expenditures for the third quarter of 2026 will be approximately $410 to $440 million. The midpoint of guidance for the third quarter of $425 million is a 3% decrease, as compared to $436 million in the second quarter of 2026.

Second Quarter 2026 Earnings Conference Call

The Company will host a live conference call on Thursday, August 6, 2026, at 10:00 a.m. Central Time to review its second quarter 2026 financial results and operational highlights. To access the live conference call by phone, you can use the following link https://register-conf.media-server.com/register/BI7d538819bdaa42289984ae6f563b48cd and you will be provided with dial in details. To avoid delays, it is recommended that participants dial into the conference call 15 minutes ahead of the scheduled start time.

The live conference call will also be available through the Company’s website at www.matadorresources.com on the Events and Presentations page under the Investor Relations tab. The replay for the event will be available on the Company’s website at www.matadorresources.com on the Events and Presentations page under the Investor Relations tab for one year.

About Matador Resources Company

Matador is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. Matador also operates in the Haynesville shale and Cotton Valley plays in Northwest Louisiana. Additionally, Matador conducts midstream operations in support of its exploration, development and production operations and provides natural gas processing, oil transportation services, natural gas, oil and produced water gathering services and produced water disposal services to third parties.

For more information about Matador Resources Company, visit www.matadorresources.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. “Forward-looking statements” are statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “could,” “believe,” “would,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “should,” “continue,” “plan,” “predict,” “potential,” “project,” “hypothetical,” “forecasted” and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements include, but are not limited to, statements about the consummation and timing of the Paloma acquisition and the Ridge Runner acquisition, the expected benefits, opportunities and results of the Cardinal Midstream acquisition, the Paloma acquisition and the Ridge Runner acquisition (collectively, the “Acquisitions”), including the expected impact on cash flows, third-party volumes, system connectivity, flow assurance, expansion opportunities, value creation, reserves additions, inventory additions and other impacts of the Acquisitions, the expected results and commercial viability of Matador’s Woodford acreage and future development thereof, the integration of the Acquisitions, guidance, projected or forecasted financial and operating results, future liquidity, the repayment of debt, the payment of dividends, the amount and timing of share repurchases, results in certain basins, objectives, project timing, expectations and intentions, regulatory and governmental actions and other statements that are not historical facts. Actual results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. These forward-looking statements involve certain risks and uncertainties, including, but not limited to, , the ability of the applicable parties to consummate the Paloma acquisition or the Ridge Runner acquisition in the anticipated timeframe or at all; risks related to the satisfaction or waiver of the conditions to closing the Paloma acquisition or the Ridge Runner acquisition in the anticipated timeframe or at all; risks related to obtaining the requisite regulatory approvals; the ability of Matador and San Mateo to integrate the applicable Acquisitions and realize the anticipated benefits of the applicable Acquisitions; the availability and terms of financing; commodity price volatility; operational risks; regulatory changes; disruption from Matador’s acquisitions or dispositions making it more difficult to maintain business and operational relationships; significant transaction costs associated with Matador’s acquisitions or dispositions; the risk of litigation and/or regulatory actions related to Matador’s acquisitions or dispositions, as well as the following risks related to financial and operational performance: general economic conditions, including the effects of inflation; interest rates; tariffs and trade tensions; Matador’s ability to execute its business plan, including whether its drilling program is successful; changes in oil, natural gas and natural gas liquids prices and the demand for oil, natural gas and natural gas liquids; its ability to replace reserves and efficiently develop current reserves; the operating results of Matador’s midstream oil, natural gas and water gathering and transportation systems, pipelines and facilities, the acquiring of third-party business and the drilling of any additional salt water disposal wells; costs of operations; delays and other difficulties related to producing oil, natural gas and natural gas liquids or the construction, expansion or operation of Matador’s midstream assets; delays and other difficulties related to regulatory and governmental approvals and restrictions; impact on Matador’s operations due to seismic events; its ability to make acquisitions on economically acceptable terms; its ability to integrate acquisitions; availability of sufficient capital to execute its business plan, including from future cash flows, capital markets, available borrowing capacity under its revolving credit facilities and otherwise; the operating results of and the availability of any potential distributions from our joint ventures; weather conditions, environmental conditions and natural disasters; evolving cybersecurity risks; and the other factors that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. For further discussions of risks and uncertainties, you should refer to Matador’s filings with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” section of Matador’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. Matador undertakes no obligation to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by law, including the securities laws of the United States and the rules and regulations of the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

Selected Financial and Operating Items

Sequential and year-over-year quarterly comparisons of selected financial and operating items are shown in the following table:

Three Months Ended

June 30,

2026

March 31,

2026

June 30,

2025

Net Production Volumes:(1)

Oil (MBbl)

11,476

10,825

11,182

Natural gas (Bcf)

48.9

47.2

47.0

Total oil equivalent (MBOE)

19,622

18,683

19,020

Average Daily Production Volumes:(1)

Oil (Bbl/d)

126,106

120,277

122,875

Natural gas (MMcf/d)

537.1

523.9

516.8

Total oil equivalent (BOE/d)

215,631

207,594

209,013

Average Sales Prices:

Oil, without realized derivatives (per Bbl)

$

98.16

$

72.83

$

64.34

Oil, with realized derivatives (per Bbl)

$

83.19

$

68.04

$

64.34

Natural gas, without realized derivatives (per Mcf)

$

(0.79

)

$

0.64

$

2.05

Natural gas, with realized derivatives (per Mcf)

$

1.24

$

1.44

$

2.20

Revenues (millions):

Oil and natural gas revenues

$

1,087.6

$

818.7

$

815.8

Third-party midstream services revenues

$

44.6

$

42.1

$

42.0

Realized (loss) gain on derivatives

$

(72.5

)

$

(14.5

)

$

6.9

Operating Expenses (per BOE):

Lease operating

$

5.45

$

5.76

$

5.53

Transportation and processing

$

0.96

$

0.79

$

0.86

Midstream operating

$

3.09

$

2.96

$

2.34

Depletion, depreciation and amortization

$

16.06

$

15.67

$

15.91

Taxes other than income

$

5.24

$

3.79

$

3.58

General and administrative(2)

$

2.10

$

2.09

$

1.69

Total(10)

$

32.90

$

31.06

$

29.91

Other (millions):

Net sales of purchased natural gas(4)

$

80.2

$

38.4

$

32.0

Net income (loss) (millions)(5)

$

390.7

$

(35.9

)

$

150.2

Earnings (loss) per common share (diluted)(5)

$

3.15

$

(0.29

)

$

1.21

Adjusted net income (millions)(5)(6)

$

324.6

$

189.5

$

190.9

Adjusted earnings per common share (diluted)(5)(7)

$

2.61

$

1.53

$

1.53

Adjusted EBITDA (millions)(5)(8)

$

781.0

$

577.2

$

594.2

Net cash provided by operating activities (millions)(9)

$

937.1

$

470.5

$

501.0

Adjusted free cash flow (millions)(5)(10)

$

303.2

$

113.3

$

132.7

San Mateo net income (millions)(11)

$

46.9

$

40.9

$

65.6

San Mateo Adjusted EBITDA (millions)(8)(11)

$

77.3

$

68.9

$

85.5

San Mateo net cash provided by operating activities (millions)(11)

$

119.8

$

35.1

$

23.3

San Mateo adjusted free cash flow (millions)(9)(10)(11)

$

36.1

$

46.4

$

(14.9

)

Matador Combined Midstream Adjusted EBITDA (millions)(12)

$

89.9

$

82.2

$

95.1

D/C/E capital expenditures (millions)

$

411.6

$

417.6

$

345.3

Midstream capital expenditures (millions)(13)

$

24.5

$

10.5

$

56.2

Matador Resources Company and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED

(In thousands, except par value and share data)

June 30,

2026

December 31,

2025

ASSETS

Current assets

Cash

$

26,318

$

15,314

Restricted cash

64,597

64,163

Accounts receivable

Oil and natural gas revenues

408,304

286,158

Joint interest billings

185,314

140,043

Other

77,526

103,628

Derivative instruments

13,597

34,052

Lease and well equipment inventory

50,177

43,842

Prepaid expenses and other current assets

181,276

129,368

Total current assets

1,007,109

816,568

Property and equipment, at cost

Oil and natural gas properties, full-cost method

Evaluated

15,487,735

14,286,726

Unproved and unevaluated

2,703,231

1,823,456

Midstream properties

2,018,246

1,963,059

Other property and equipment

57,058

53,199

Less accumulated depletion, depreciation and amortization

(8,002,990

)

(7,395,142

)

Net property and equipment

12,263,280

10,731,298

Other assets

Other long-term assets

224,177

162,703

Total assets

$

13,494,566

$

11,710,569

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities

Accounts payable and accrued liabilities

$

836,776

$

540,620

Royalties payable

399,711

351,062

Derivative instruments

141,092

—

Advances from joint interest owners

78,280

64,169

Other current liabilities

93,254

75,658

Total current liabilities

1,549,113

1,031,509

Long-term liabilities

Borrowings under Credit Agreement

939,000

398,000

Borrowings under San Mateo Credit Facility

911,000

883,000

Senior unsecured notes payable

2,366,410

2,121,102

Asset retirement obligations

155,191

144,063

Derivative instruments

8,470

—

Deferred income taxes

1,124,901

1,015,931

Other long-term liabilities

189,583

120,312

Total long-term liabilities

5,694,555

4,682,408

Shareholders’ equity

Common stock - $0.01 par value, 160,000,000 shares authorized; 124,511,431 and 124,409,739 shares issued; and 123,998,298 and 124,262,322 shares outstanding, respectively

1,245

1,244

Additional paid-in capital

2,537,746

2,509,118

Retained earnings

3,414,634

3,153,112

Treasury stock, at cost, 513,133 and 147,417 shares, respectively

(25,002

)

(5,333

)

Total Matador Resources Company shareholders’ equity

5,928,623

5,658,141

Non-controlling interest in subsidiaries

322,275

338,511

Total shareholders’ equity

6,250,898

5,996,652

Total liabilities and shareholders’ equity

$

13,494,566

$

11,710,569

      Matador Resources Company and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED

(In thousands, except per share data)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Revenues

Oil and natural gas revenues

$

1,087,584

$

815,774

$

1,906,315

$

1,725,692

Third-party midstream services revenues

44,593

42,007

86,684

75,506

Sales of purchased natural gas

41,246

67,897

122,028

130,653

Realized (loss) gain on derivatives

(72,488

)

6,947

(86,981

)

9,661

Unrealized gain (loss) on derivatives

85,457

(37,313

)

(170,017

)

(32,242

)

Total revenues

1,186,392

895,312

1,858,029

1,909,270

Expenses

Lease operating

106,948

105,230

214,474

209,641

Transportation and processing

18,934

16,451

33,776

36,512

Midstream operating

60,536

44,457

115,763

96,260

Purchased natural gas

(38,912

)

35,944

3,423

90,077

Depletion, depreciation and amortization

315,144

302,602

607,848

584,493

Taxes other than income

102,794

68,010

173,685

145,059

Accretion of asset retirement obligations

2,352

1,767

4,620

3,494

General and administrative

41,274

32,187

80,297

65,919

Total expenses

609,070

606,648

1,233,886

1,231,455

Operating income

577,322

288,664

624,143

677,815

Other income (expense)

Interest expense

(60,819

)

(53,345

)

(112,344

)

(102,834

)

Loss on debt extinguishment

—

—

(15,587

)

—

Loss on asset sales

—

—

(578

)

—

Other income

3,986

3,502

8,353

9,008

Total other expense

(56,833

)

(49,843

)

(120,156

)

(93,826

)

Income before income taxes

520,489

238,821

503,987

583,989

Income tax provision (benefit)

Current

226

23,089

226

46,070

Deferred

106,611

33,373

105,927

93,313

Total income tax provision

106,837

56,462

106,153

139,383

Net income

413,652

182,359

397,834

444,606

Net income attributable to non-controlling interest in subsidiaries

(23,000

)

(32,134

)

(43,054

)

(54,296

)

Net income attributable to Matador Resources Company shareholders

$

390,652

$

150,225

$

354,780

$

390,310

Earnings per common share

Basic

$

3.15

$

1.21

$

2.86

$

3.13

Diluted

$

3.15

$

1.21

$

2.86

$

3.12

Weighted average common shares outstanding

Basic

124,156

124,418

124,205

124,804

Diluted

124,156

124,456

124,205

124,977

      Matador Resources Company and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED

(In thousands)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Operating activities

Net income

$

413,652

$

182,359

$

397,834

$

444,606

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

Unrealized (gain) loss on derivatives

(85,457

)

37,313

170,017

32,242

Depletion, depreciation and amortization

315,144

302,602

607,848

584,493

Accretion of asset retirement obligations

2,352

1,767

4,620

3,494

Stock-based compensation expense

6,099

4,572

10,617

8,460

Loss on extinguishment of debt

—

—

15,587

—

Deferred income tax provision

106,611

33,373

105,927

93,313

Amortization of debt issuance costs and other debt-related costs

3,530

3,673

7,068

7,336

Other non-cash changes

648

908

7,301

1,117

Changes in operating assets and liabilities

Accounts receivable, prepaid expenses and other current assets

40,055

(24,827

)

(148,629

)

(5,198

)

Lease and well equipment inventory

(6,172

)

(11,122

)

(5,120

)

(21,955

)

Other long-term assets

1,887

(837

)

1,738

(1,029

)

Accounts payable, accrued liabilities and other current liabilities

60,808

(37,812

)

174,265

6,281

Royalties payable

62,649

17,453

48,650

49,694

Advances from joint interest owners

17,173

(6,392

)

14,111

26,112

Other long-term liabilities

(1,851

)

(2,003

)

(4,160

)

(60

)

Net cash provided by operating activities

937,128

501,027

1,407,674

1,228,906

Investing activities

Drilling, completion and equipping capital expenditures

(367,968

)

(367,114

)

(745,343

)

(745,476

)

Acquisition of Cardinal

(37,604

)

—

(37,604

)

—

Acquisition of oil and natural gas properties

(1,167,179

)

(43,456

)

(1,228,834

)

(125,118

)

Midstream capital expenditures

(21,063

)

(86,910

)

(38,697

)

(159,844

)

Acquisition of midstream assets

(6,200

)

—

(6,200

)

—

Expenditures for other property and equipment

44

(814

)

(2,088

)

(1,756

)

Proceeds from sale of assets

—

19

858

22,257

Proceeds from sale of equity method investment

—

3,263

—

3,263

Net cash used in investing activities

(1,599,970

)

(495,012

)

(2,057,908

)

(1,006,674

)

Financing activities

Repayments of borrowings under Credit Agreement

(965,000

)

(640,000

)

(1,613,000

)

(1,235,500

)

Borrowings under Credit Agreement

1,719,000

625,000

2,154,000

1,030,000

Repayments of borrowings under San Mateo Credit Facility

(76,000

)

(65,000

)

(181,000

)

(165,000

)

Borrowings under San Mateo Credit Facility

69,000

188,000

209,000

328,000

Cost to amend credit facilities

(2,058

)

(463

)

(2,192

)

(463

)

Proceeds from issuance of senior unsecured notes

—

—

750,000

—

Cost to issue senior unsecured notes

(783

)

—

(12,909

)

—

Purchase of senior unsecured notes

—

—

(509,670

)

—

Repurchases of common stock

(11,399

)

(44,249

)

(12,106

)

(44,249

)

Proceeds from sale-leaseback financing obligation

—

—

24,000

—

Payments on sale-leaseback financing obligation

(331

)

—

(331

)

—

Dividends paid

(46,441

)

(38,970

)

(93,258

)

(78,150

)

Contributions related to formation of San Mateo

8,200

6,400

15,100

9,200

Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries

(28,910

)

(26,569

)

(59,290

)

(62,230

)

Taxes paid related to net share settlement of stock-based compensation

(3,589

)

(536

)

(6,005

)

(11,081

)

Other

(404

)

(358

)

(667

)

(715

)

Net cash provided by (used in) financing activities

661,285

3,255

661,672

(230,188

)

Change in cash and restricted cash

(1,557

)

9,270

11,438

(7,956

)

Cash and restricted cash at beginning of period

92,472

77,516

79,477

94,742

Cash and restricted cash at end of period

$

90,915

$

86,786

$

90,915

$

86,786

      Supplemental Non-GAAP Financial Measures

Adjusted EBITDA

This press release includes the non-GAAP financial measure of Adjusted EBITDA. Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company’s consolidated financial statements, such as securities analysts, investors, lenders and rating agencies. “GAAP” means Generally Accepted Accounting Principles in the United States of America. The Company believes Adjusted EBITDA helps it evaluate its operating performance and compare its results of operations from period to period without regard to its financing methods or capital structure. The Company defines, on a consolidated basis and for San Mateo, Adjusted EBITDA as earnings before interest expense, income taxes, depletion, depreciation and amortization, accretion of asset retirement obligations, property impairments, unrealized derivative gains and losses, non-recurring transaction costs for certain acquisitions, certain other non-cash items and non-cash stock-based compensation expense and net gain or loss on asset sales and impairment. Adjusted EBITDA is not a measure of net income (loss) or net cash provided by operating activities as determined by GAAP. All references to Matador’s Adjusted EBITDA are those values attributable to Matador Resources Company shareholders after giving effect to Adjusted EBITDA attributable to third-party non-controlling interests, including in San Mateo.

Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income (loss) or net cash provided by operating activities as determined in accordance with GAAP or as an indicator of the Company’s operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components of understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure. Adjusted EBITDA may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDA in the same manner. The following table presents the calculation of Adjusted EBITDA and the reconciliation of Adjusted EBITDA to the GAAP financial measures of net income (loss) and net cash provided by operating activities, respectively, that are of a historical nature. Where references are pro forma, forward-looking, preliminary or prospective in nature, and not based on historical fact, the table does not provide a reconciliation. The Company could not provide such reconciliation without undue hardship because such Adjusted EBITDA numbers are estimations, approximations and/or ranges. In addition, it would be difficult for the Company to present a detailed reconciliation on account of many unknown variables for the reconciling items, including future income taxes, full-cost ceiling impairments, unrealized gains or losses on derivatives and gains or losses on asset sales and impairment. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Adjusted EBITDA – Matador Resources Company

Three Months Ended

June 30,

March 31,

June 30,

(In thousands)

2026

2026

2025

Unaudited Adjusted EBITDA Reconciliation to Net Income (Loss):

Net income (loss) attributable to Matador Resources Company shareholders

$

390,652

$

(35,872

)

$

150,225

Net income attributable to non-controlling interest in subsidiaries

23,000

20,054

32,134

Net income (loss)

413,652

(15,818

)

182,359

Interest expense

60,819

51,525

53,345

Total income tax provision (benefit)

106,837

(684

)

56,462

Depletion, depreciation and amortization

315,144

292,704

302,602

Accretion of asset retirement obligations

2,352

2,268

1,767

Unrealized (gain) loss on derivatives

(85,457

)

255,474

37,313

Non-cash stock-based compensation expense

6,099

4,518

4,572

Loss on debt extinguishment

—

15,587

—

Loss on asset sales

—

578

—

Other non-recurring (income) expense

(573

)

4,798

(2,300

)

Consolidated Adjusted EBITDA

818,873

610,950

636,120

Adjusted EBITDA attributable to non-controlling interest in subsidiaries

(37,864

)

(33,780

)

(41,875

)

Adjusted EBITDA attributable to Matador Resources Company shareholders

$

781,009

$

577,170

$

594,245

  Three Months Ended

June 30,

March 31,

June 30,

(In thousands)

2026

2026

2025

Unaudited Adjusted EBITDA Reconciliation to Net Cash Provided by Operating Activities:

Net cash provided by operating activities

$

937,128

$

470,546

$

501,027

Net change in operating assets and liabilities

(174,549

)

93,694

65,540

Interest expense, net of non-cash portion

57,289

47,987

49,672

Current income tax provision

226

—

23,089

Other non-cash and non-recurring income

(1,221

)

(1,277

)

(3,208

)

Adjusted EBITDA attributable to non-controlling interest in subsidiaries

(37,864

)

(33,780

)

(41,875

)

Adjusted EBITDA attributable to Matador Resources Company shareholders

$

781,009

$

577,170

$

594,245

  Adjusted EBITDA – San Mateo (100%)

Three Months Ended

June 30,

March 31,

June 30,

(In thousands)

2026

2026

2025

Unaudited Adjusted EBITDA Reconciliation to Net Income:

Net income

$

46,940

$

40,928

$

65,580

Depletion, depreciation and amortization

15,772

15,298

11,300

Interest expense

13,354

12,561

8,464

Accretion of asset retirement obligations

154

151

116

Other non-recurring expense

1,053

—

—

Adjusted EBITDA

$

77,273

$

68,938

$

85,460

  Three Months Ended

June 30,

March 31,

June 30,

(In thousands)

2026

2026

2025

Unaudited Adjusted EBITDA Reconciliation to Net Cash Provided by Operating Activities:

Net cash provided by operating activities

$

119,759

$

35,073

$

23,305

Net change in operating assets and liabilities

(55,524

)

21,172

54,160

Interest expense, net of non-cash portion

12,732

11,946

7,995

Other non-cash and non-recurring expense

306

747

—

Adjusted EBITDA

$

77,273

$

68,938

$

85,460

  Adjusted EBITDA – Combined Midstream (100%)

Three Months Ended

June 30,

March 31,

June 30,

(In thousands)

2026

2026

2025

Matador Midstream(1)

Unaudited Adjusted EBITDA Reconciliation to Net Income:

Net income

$

10,966

$

11,818

$

7,981

Depletion, depreciation and amortization

1,615

1,427

1,618

Accretion of asset retirement obligations

8

6

5

Adjusted EBITDA attributable to Matador Midstream(1)

$

12,589

$

13,251

$

9,604

Adjusted EBITDA attributable to San Mateo

$

77,273

$

68,938

$

85,460

Adjusted EBITDA - Combined Midstream

$

89,862

$

82,189

$

95,064

(1) Represents activity associated with Matador’s wholly-owned midstream assets.

      Adjusted Net Income and Adjusted Earnings Per Diluted Common Share

This press release includes the non-GAAP financial measures of adjusted net income and adjusted earnings per diluted common share. These non-GAAP items are measured as net income (loss) attributable to Matador Resources Company shareholders, adjusted for dollar and per share impact of certain items, including unrealized gains or losses on derivatives, the impact of full-cost ceiling impairment charges, if any, and non-recurring transaction costs for certain acquisitions or other non-recurring income or expense items, along with the related tax effect for all periods. This non-GAAP financial information is provided as additional information for investors and is not in accordance with, or an alternative to, GAAP financial measures. Additionally, these non-GAAP financial measures may be different than similar measures used by other companies. The Company believes the presentation of adjusted net income and adjusted earnings per diluted common share provides useful information to investors, as it provides them an additional relevant comparison of the Company’s performance across periods and to the performance of the Company’s peers. In addition, these non-GAAP financial measures reflect adjustments for items of income and expense that are often excluded by securities analysts and other users of the Company’s financial statements in evaluating the Company’s performance. The table below reconciles adjusted net income and adjusted earnings per diluted common share to their most directly comparable GAAP measure of net income (loss) attributable to Matador Resources Company shareholders.

Three Months Ended

June 30,

March 31,

June 30,

2026

2026

2025

(In thousands, except per share data)

Unaudited Adjusted Net Income and Adjusted Earnings Per Share Reconciliation to Net Income (Loss):

Net income (loss) attributable to Matador Resources Company shareholders

$

390,652

$

(35,872

)

$

150,225

Total income tax provision (benefit)

106,837

(684

)

56,462

Income (loss) attributable to Matador Resources Company shareholders before taxes

497,489

(36,556

)

206,687

Less non-recurring and unrealized charges to income before taxes:

Unrealized (gain) loss on derivatives

(85,457

)

255,474

37,313

Loss on debt extinguishment

—

15,587

—

Loss on asset sales

—

578

—

Other non-recurring (income) expense

(1,089

)

4,798

(2,300

)

Adjusted income attributable to Matador Resources Company shareholders before taxes

410,943

239,881

241,700

Income tax expense(1)

86,298

50,375

50,757

Adjusted net income attributable to Matador Resources Company shareholders (non-GAAP)

$

324,645

$

189,506

$

190,943

Basic weighted average shares outstanding, without participating securities

123,557

123,480

123,855

Dilutive effect of participating securities

599

774

563

Weighted average shares outstanding - basic

124,156

124,254

124,418

Dilutive effect of options and restricted stock units

—

—

38

Weighted average common shares outstanding - diluted

124,156

124,254

124,456

Adjusted earnings per share attributable to Matador Resources Company shareholders (non-GAAP)

Basic

$

2.61

$

1.53

$

1.53

Diluted

$

2.61

$

1.53

$

1.53

(1) Estimated using federal statutory tax rate in effect for the period.

    Adjusted Free Cash Flow

This press release includes the non-GAAP financial measure of adjusted free cash flow. This non-GAAP item is measured, on a consolidated basis for the Company and for San Mateo, as net cash provided by operating activities, adjusted for changes in working capital and cash performance incentives that are not included as operating cash flows, less cash flows used for capital expenditures, adjusted for changes in capital accruals. On a consolidated basis, these numbers are also adjusted for the cash flows related to non-controlling interest in subsidiaries that represent cash flows not attributable to Matador shareholders. Adjusted free cash flow should not be considered an alternative to, or more meaningful than, net cash provided by operating activities as determined in accordance with GAAP or an indicator of the Company’s liquidity. Adjusted free cash flow is used by the Company, securities analysts and investors as an indicator of the Company’s ability to manage its operating cash flow, internally fund its D/C/E capital expenditures, pay dividends and service or incur additional debt, without regard to the timing of settlement of either operating assets and liabilities or accounts payable related to capital expenditures. Additionally, this non-GAAP financial measure may be different than similar measures used by other companies. The Company believes the presentation of adjusted free cash flow provides useful information to investors, as it provides them an additional relevant comparison of the Company’s performance, sources and uses of capital associated with its operations across periods and to the performance of the Company’s peers. In addition, this non-GAAP financial measure reflects adjustments for items of cash flows that are often excluded by securities analysts and other users of the Company’s financial statements in evaluating the Company’s cash spend.

The table below reconciles adjusted free cash flow to its most directly comparable GAAP measure of net cash provided by operating activities. All references to Matador’s adjusted free cash flow are those values attributable to Matador shareholders after giving effect to adjusted free cash flow attributable to third-party non-controlling interests, including in San Mateo. Where references are pro forma, forward-looking, preliminary or prospective in nature, and not based on historical fact, the table does not provide a reconciliation. Matador is unable to provide a reconciliation of this forward-looking non-GAAP financial measure to the most directly comparable GAAP measure without unreasonable effort due to the inherent difficulty in forecasting certain reconciling items. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.

Adjusted Free Cash Flow - Matador Resources Company

Three Months Ended

Year Ended

June 30,

March 31,

June 30,

December 31,

(In thousands)

2026

2026

2025

2025

Net cash provided by operating activities

$

937,128

$

470,546

$

501,027

$

2,425,015

Net change in operating assets and liabilities

(174,549

)

93,694

65,540

(176,189

)

San Mateo discretionary cash flow attributable to non-controlling interest in subsidiaries(1)

(31,475

)

(27,560

)

(37,958

)

(126,916

)

Performance incentives received from Five Point

8,200

6,900

6,400

13,000

Total discretionary cash flow

739,304

543,580

535,009

2,134,910

Drilling, completion and equipping capital expenditures

367,968

377,375

367,114

1,542,253

Midstream capital expenditures

21,063

17,634

86,910

297,746

Expenditures for other property and equipment

(44

)

2,132

814

4,246

Net change in capital accruals

60,852

37,934

(7,227

)

(29,588

)

San Mateo accrual-based capital expenditures related to non-controlling interest in subsidiaries(2)

(13,765

)

(4,805

)

(45,276

)

(116,703

)

Total accrual-based capital expenditures(3)

436,074

430,270

402,335

1,697,954

Adjusted free cash flow

$

303,230

$

113,310

$

132,674

$

436,956

Quarterly distributions from San Mateo to Matador

$

30,090

$

31,620

$

29,580

$

136,680

(1) Represents Five Point’s 49% interest in San Mateo discretionary cash flow, as computed below.

(2) Represents Five Point’s 49% interest in accrual-based San Mateo capital expenditures, as computed below.

(3) Represents drilling, completion and equipping costs, Matador’s share of San Mateo capital expenditures plus 100% of other midstream capital expenditures not associated with San Mateo.

  Adjusted Free Cash Flow - San Mateo (100%)

Three Months Ended

Year Ended

June 30,

March 31,

June 30,

December 31,

(In thousands)

2026

2026

2025

2025

Net cash provided by San Mateo operating activities

$

119,759

$

35,073

$

23,305

$

248,193

Net change in San Mateo operating assets and liabilities

(55,524

)

21,172

54,160

10,821

Total San Mateo discretionary cash flow

64,235

56,245

77,465

259,014

San Mateo capital expenditures

15,195

11,011

76,735

252,437

Net change in San Mateo capital accruals

12,897

(1,205

)

15,665

(14,266

)

San Mateo accrual-based capital expenditures

28,092

9,806

92,400

238,171

San Mateo adjusted free cash flow

$

36,143

$

46,439

$

(14,935

)

$

20,843