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Revenue of $105 million

Subscription and Service Revenue of $29 million

New MISSION 1 Series of Cameras Available On-line and Through Retailers Globally

GoPro Subscription Hits Record 69% Attach Rate

, /PRNewswire/ -- GoPro, Inc. (NASDAQ: GPRO) announced financial results for its second quarter ended June 30, 2026, and posted management commentary in the investor relations section of its website at https://investor.gopro.com.

"In Q2, we expanded the performance and creative potential of our camera lineup with the launch of the MISSION 1 Series of cameras and continued to advance our strategic review process to maximize shareholder value. I'm excited about our new and upcoming products as they further establish GoPro as one of the world's most exciting digital imaging companies and brands," said Nicholas Woodman, GoPro's founder and CEO.

Q2 2026 Financial Results

Revenue was $105 million, down 31% year-over-year. Sell-through was approximately 291,000 camera units, down 38% year-over-year. Subscription and service revenue increased 11% year-over-year to $29 million, or 28% of revenue, compared to 17% of Q2 2025 revenue. Q2 2026 subscription and service revenue included $2 million generated from GoPro's AI content licensing program. Subscriber attach rate was a record at 69%, compared to 54% the prior year quarter. Subscription ARPU increased 9% year-over-year and 5% sequentially. Revenue from the retail channel was $58 million, or 56% of total revenue and down 48% year-over-year. GoPro.com revenue, including subscription and service revenue, was $47 million, or 44% of total revenue and up 13% year-over-year. GAAP gross margin was 30.2% compared to 35.8% in the prior year quarter and included a $19 million benefit from tariff refunds, partially offset by a $15 million charge related to certain component purchase commitments. Non-GAAP gross margin was 30.4% compared to 36.0% in the prior year quarter. GAAP net loss was $51 million, or a $(0.30) loss per share, compared to a net loss of $16 million or a $(0.10) loss per share, in the prior year quarter. Non-GAAP net loss was $36 million, or a $(0.21) loss per share, compared to a net loss of $12 million or a $(0.08) loss per share, in the prior year quarter. GAAP and non-GAAP net loss for Q2 2026 included a $19 million benefit from tariff refunds, partially offset by a $15 million charge related to certain component purchase commitments. Adjusted EBITDA was negative $29 million compared to negative $6 million in the prior year quarter. Recent Business Highlights

In May, GoPro's Board of Directors authorized a process to evaluate a potential sale of the company and other strategic alternatives, aimed at maximizing shareholder value.  In May, GoPro began shipping its new MISSION 1 PRO and MISSION 1 compact cinema cameras, available on GoPro.com and through retail partners globally, including Best Buy and Walmart, and specialized imaging retailers B&H and Adorama. The MISSION 1 Series has earned recognition across the industry, including editor's choice awards and recommendations from press. GoPro's tech-enabled motorcycle helmet initiative, jointly developed with AGV, the leading Italian helmet brand, remains on track. The helmet recently achieved ECE 22.06 safety standard compliance, one of the industry's most advanced and comprehensive street-riding helmet safety standards.   Results Summary:

($ in thousands, except per share amounts)

Three months ended June 30,

2026

2025

% Change

Revenue

Hardware revenue

$       75,953

$      126,428

(39.9) %

Subscription and services revenue

28,981

26,215

10.6 %

Total revenue

$      104,934

$      152,643

(31.3) %

Gross margin

GAAP

30.2 %

35.8 %

(560) bps

Non-GAAP

30.4 %

36.0 %

(560) bps

Operating loss

GAAP

$      (38,982)

$      (14,007)

178.3 %

Non-GAAP

$      (32,601)

$        (8,480)

284.4 %

Net loss

GAAP

$      (51,005)

$      (16,422)

210.6 %

Non-GAAP

$      (35,794)

$      (11,957)

199.4 %

Diluted net loss per share

GAAP

$         (0.30)

$         (0.10)

200.0 %

Non-GAAP

$         (0.21)

$         (0.08)

162.5 %

Adjusted EBITDA

$      (29,497)

$        (5,690)

418.4 %

Conference Call

GoPro management will host a conference call and live webcast for analysts and investors today at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the Company's financial results.

Prior to the start of the call, the Company will post Management Commentary on the "Events & Presentations" section of its investor relations website at https://investor.gopro.com. Management will make brief opening comments before taking questions.

To listen to the live conference call, please dial +1 833-461-5787 (US) or +1 585-542-9983 (International) and enter access code 529 017 833, approximately 15 minutes prior to the start of the call. A live webcast of the conference call will be accessible on the "Events & Presentations" section of the Company's website at https://investor.gopro.com. An archived audio webcast will be accessible for at least 90 days on GoPro's website, https://investor.gopro.com.

About GoPro, Inc. (NASDAQ: GPRO)

GoPro helps the world capture and share itself in immersive and exciting ways.

Connect with GoPro on Instagram, YouTube, TikTok, Facebook, X, LinkedIn, and GoPro's blog, The Current. Members of the press can access official logos and imagery on our press portal. For more information, visit GoPro.com.

GoPro, HERO, MAX, MISSION and their respective logos are trademarks or registered trademarks of GoPro, Inc. in the United States and other countries.

Note Regarding Use of Non-GAAP Financial Measures

GoPro reports gross profit, gross margin percentage, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss) and diluted net income (loss) per share in accordance with U.S. generally accepted accounting principles (GAAP) and on a non-GAAP basis. Additionally, GoPro reports non-GAAP adjusted EBITDA. Non-GAAP items exclude, where applicable, the effects of stock-based compensation, acquisition-related costs, restructuring and other related costs, gains or losses on insurance proceeds, gains or losses on extinguishment of debt, gains or losses on the revaluation of warrants, gains or losses related to derivative liabilities, gains on the sale and/or license of intellectual property, non-cash interest expense, goodwill impairment charges, and the tax impact of these items. When planning, forecasting, and analyzing gross profit, gross margin percentage, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss) and net income (loss) per share for future periods, GoPro does so primarily on a non-GAAP basis without preparing a GAAP analysis as that would require estimates for reconciling items which are inherently difficult to predict with reasonable accuracy. A reconciliation of preliminary GAAP to non-GAAP measures has been provided in this press release, and investors are encouraged to review the reconciliation.

Note on Forward-looking Statements

This press release may contain projections or other forward-looking statements within the meaning Section 27A of the Private Securities Litigation Reform Act. Words such as "anticipate," "believe," "estimate," "expect," "intend," "should," "will," "may", "plan" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements in this press release may include but are not limited to statements regarding our expectations regarding revenue, profitability, improved gross margin, and reduced operating expenses; cash flow improvement and inventory reduction; the launch and market positioning of the MISSION 1 Series cameras in the high-end digital imaging market; our evaluation of strategic alternatives and the timing of completing any strategic alternatives, including a potential sale or merger of the Company; subscription and service revenue and subscriber retention and; partnerships and brand collaborations. These statements involve risks and uncertainties, and actual events or results may differ materially. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements include the inability to achieve or sustain revenue growth or profitability in the future; substantial doubt about our ability to continue as a going concern; dilution of our common stock; our ability to maintain compliance with Nasdaq listing requirements; plans to drive profitability, including our restructuring plans and the improved efficiencies in our operations that such plans may create; our ability to achieve profitability if there are delays in our product launches, increases in component costs, or shortages of key components, including due to our ability to retain or identify alternative suppliers in a timely fashion; the impact of negative macroeconomic factors including fluctuating interest rates, inflation, currency exchange rates, market volatility, and economic downturns or uncertainty in our key U.S. and international markets that may adversely affect consumer discretionary spending and demand for our products; changes to trade agreements, trade policies, increased tariffs, and import/export regulations which may negatively affect our business, supply chain expenses, and gross margins; the fact that our goal to grow revenue and be profitable relies upon our ability to manage expenses and grow sales from our direct-to-consumer business, our retail partners, and distributors; our ability to acquire and retain subscribers, and the risk that subscriber count may continue to decline; our reliance on third-party suppliers, some of which are sole-source suppliers, and contract manufacturers for our products, some of which may be impacted due to supply shortages, long lead times, or other service disruptions, including unprecedented increases and volatility in memory component costs, that may lead to increased costs due to the effects of global conflicts and geopolitical issues such as the ongoing conflicts in the Middle East, Ukraine, or China-Taiwan relations; our ability to maintain the value and reputation of our brand and protect our intellectual property and proprietary rights; the risk that our sales fall below our forecasts, especially during the holiday season; the risk we fail to manage our operating expenses effectively, which may result in our financial performance suffering; the fact that our profitability depends in part on further penetrating our total addressable market, including through new products such as the MISSION 1 Series and potential expansion into defense and aerospace markets, and we may not be successful in doing so; the risk we are unable to reduce our operating expenses or that continued reductions in research and development and marketing spending may constrain our product roadmap, ability to innovate, and ability to generate sufficient consumer demand; the fact that we rely on sales of our cameras, mounts, and accessories for substantially all of our revenue, and any decrease in the sales or change in sales mix of these products could harm our business; the risk that we may not successfully manage product introductions, product transitions, product pricing, and marketing; the fact that a small number of retailers and distributors account for a substantial portion of our revenue and our level of business with them could be significantly reduced; our ability to attract, engage, and retain qualified personnel, particularly given reductions in our workforce and fluctuations in the price of our Class A common stock; the impact of competition on our market share, revenue, and profitability; the fact that we may experience fluctuating revenue, expenses, and profitability in the future; our substantial indebtedness, including but not limited to, our Credit Facilities and Convertible Debentures and 2026 Notes, and the corresponding cash debt service obligations and restrictive covenants; our ability to comply with financial covenants in our Credit Facilities and the risk of cross-default; the risk that our evaluation of strategic alternatives may not result in a transaction or other outcome that enhances stockholder value, and may be disruptive to our business operations; the risk that our pursuit of defense and aerospace opportunities could subject us to retaliatory actions by foreign governments; risks related to inventory, purchase commitments, and long-lived assets; the risk that we will encounter problems with our distribution system; the threat of a security breach or other disruption including cyberattacks; the concern that our intellectual property and proprietary rights may not adequately protect our products and services; the outcome of pending or future litigation and legal proceedings; and other factors detailed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the "SEC") on March 12, 2026, and as updated in subsequent periodic filings with the SEC including the Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. These forward-looking statements speak only as of the date hereof or as of the date otherwise stated herein. GoPro disclaims any obligation to update these forward-looking statements.

GoPro, Inc.

Preliminary Condensed Consolidated Statements of Operations

(unaudited)

Three months ended June 30,

Six months ended June 30,

(in thousands, except per share data)

2026

2025

2026

2025

Revenue

Hardware

$          75,953

$         126,428

$         148,103

$         233,847

Subscription and services

28,981

26,215

55,896

53,104

Total revenue

104,934

152,643

203,999

286,951

Cost of revenue

Hardware

62,510

90,566

148,199

174,162

Subscription and services

10,761

7,414

19,831

14,977

Total cost of revenue

73,271

97,980

168,030

189,139

Gross profit

31,663

54,663

35,969

97,812

Operating expenses:

Research and development

29,646

30,503

58,081

60,060

Sales and marketing

29,016

25,275

52,234

48,533

General and administrative

11,983

12,892

21,881

29,834

Goodwill impairment

—

—

—

18,600

Total operating expenses

70,645

68,670

132,196

157,027

Operating loss

(38,982)

(14,007)

(96,227)

(59,215)

Other income (expense):

Interest expense

(6,442)

(1,436)

(10,560)

(2,233)

Other income (expense), net

(4,785)

330

(22,397)

1,278

Total other interest (expense), net

(11,227)

(1,106)

(32,957)

(955)

Loss before income taxes

(50,209)

(15,113)

(129,184)

(60,170)

Income tax expense

796

1,309

2,641

2,961

Net loss

$         (51,005)

$         (16,422)

$        (131,825)

$         (63,131)

Basic and diluted net loss per share

$            (0.30)

$            (0.10)

$            (0.79)

$            (0.40)

Shares used to compute basic and diluted net

     loss per share

171,234

157,843

167,243

157,144

GoPro, Inc.

Preliminary Condensed Consolidated Balance Sheets

(unaudited)

(in thousands)

June 30,
2026

December 31,
2025

Assets

Current assets:

Cash and cash equivalents

$             27,265

$             49,674

Accounts receivable, net

60,366

93,513

Inventory

86,745

78,431

Prepaid expenses and other current assets

54,690

30,951

Total current assets

229,066

252,569

Property and equipment, net

7,019

5,903

Operating lease right-of-use assets

9,220

11,138

Goodwill

133,751

133,751

Other long-term assets

19,400

24,622

Total assets

$           398,456

$           427,983

Liabilities and Stockholders' Equity (Deficit)

Current liabilities:

Accounts payable

$           125,987

$             97,012

Accrued expenses and other current liabilities

147,830

95,856

Short-term operating lease liabilities

7,547

12,069

Deferred revenue

50,876

52,636

Short-term debt

72,656

19,598

Total current liabilities

404,896

277,171

Long-term taxes payable

14,799

13,544

Long-term debt

—

44,322

Long-term operating lease liabilities

5,845

7,329

Other long-term liabilities

5,587

9,067

Total liabilities

431,127

351,433

Stockholders' equity (deficit):

Common stock and additional paid-in capital

1,067,479

1,044,875

Treasury stock, at cost

(193,231)

(193,231)

Accumulated deficit

(906,919)

(775,094)

Total stockholders' equity (deficit)

(32,671)

76,550

Total liabilities and stockholders' equity (deficit)

$           398,456

$           427,983

GoPro, Inc.

Preliminary Condensed Consolidated Statements of Cash Flows

(unaudited)

Three months ended June 30,

Six months ended June 30,

(in thousands)

2026

2025

2026

2025

Operating activities:

Net loss

$         (51,005)

$         (16,422)

$        (131,825)

$         (63,131)

Adjustments to reconcile net loss to net cash

     provided by (used in) operating activities:

Depreciation and amortization

1,784

1,698

3,578

3,416

Non-cash operating lease cost

1,360

1,368

2,720

1,153

Stock-based compensation

4,056

5,116

7,054

10,486

Goodwill impairment

—

—

—

18,600

Deferred income taxes, net

8

(233)

581

(130)

Non-cash interest expense

3,837

—

5,682

—

Gain on sale of intellectual property

—

—

(1,200)

—

Loss on extinguishment of debt

—

—

8,870

—

Derivative expense

—

—

7,552

—

Change in fair value of derivative liabilities

4,789

—

10,441

—

Other

354

178

(2,117)

284

Net changes in operating assets and liabilities

24,633

17,047

41,262

(19,112)

Net cash provided by (used in) operating

     activities

(10,184)

8,752

(47,402)

(48,434)

Investing activities:

Purchases of property and equipment, net

(1,020)

(478)

(2,063)

(1,783)

Proceeds from the sale and license of intellectual

     property

600

—

1,200

—

Net cash used in investing activities

(420)

(478)

(863)

(1,783)

Financing activities:

Proceeds from issuance of common stock

—

—

303

374

Taxes paid related to net share settlement of

     equity awards

(1,314)

(121)

(1,743)

(624)

Proceeds from borrowings

—

—

30,250

25,000

Repayments of borrowings

(1,475)

(20,000)

(1,850)

(20,000)

Payment of debt issuance costs

—

—

(941)

—

Net cash provided by (used in) financing

     activities

(2,789)

(20,121)

26,019

4,750

Effect of exchange rate changes on cash and

     cash equivalents

(65)

784

(163)

1,227

Net change in cash and cash equivalents

(13,458)

(11,063)

(22,409)

(44,240)

Cash and cash equivalents at beginning of period

40,723

69,634

49,674

102,811

Cash and cash equivalents at end of period

$          27,265

$          58,571

$          27,265

$          58,571

GoPro, Inc.
Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures

To supplement our unaudited selected financial data presented on a basis consistent with GAAP, we disclose certain non-GAAP financial measures, including non-GAAP gross profit, gross margin percentage, operating expenses, operating income (loss), other income (expense), tax expense (benefit), net income (loss), diluted net income (loss) per share and adjusted EBITDA. We also provide forecasts of non-GAAP gross margin, non-GAAP operating expenses, non-GAAP other income (expense), non-GAAP tax expense (benefit), non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share. We use non-GAAP financial measures to help us understand and evaluate our core operating performance and trends, to prepare and approve our annual budget, and to develop short-term and long-term operational plans. Our management uses and believes that investors benefit from referring to these non-GAAP financial measures in assessing our operating results. These non-GAAP financial measures should not be considered in isolation from, or as an alternative to, the measures prepared in accordance with GAAP, and are not based on any comprehensive set of accounting rules or principles. We believe that these non-GAAP measures, when read in conjunction with our GAAP financials, provide useful information to investors by facilitating:

the comparability of our on-going operating results over the periods presented; the ability to identify trends in our underlying business; and the comparison of our operating results against analyst financial models and operating results of other public companies that supplement their GAAP results with non-GAAP financial measures. These non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP. Some of these limitations are:

adjusted EBITDA does not reflect income tax expense (benefit), which may change cash available to us; adjusted EBITDA does not reflect interest income (expense), which may reduce cash available to us; adjusted EBITDA excludes depreciation and amortization and, although these are non-cash charges, the property and equipment being depreciated and amortized often will have to be replaced in the future, and adjusted EBITDA does not reflect any cash capital expenditure requirements for such replacements; adjusted EBITDA excludes the amortization of point of purchase (POP) display assets because it is a non-cash charge, and is treated similarly to depreciation of property and equipment and amortization of acquired intangible assets; adjusted EBITDA and non-GAAP net income (loss) exclude restructuring and other related costs which primarily include severance-related costs, stock-based compensation expenses, manufacturing consolidation charges, facilities consolidation charges recorded in connection with restructuring actions, including right-of-use asset impairment charges (if applicable), and the related ongoing operating lease cost of those facilities recorded under ASC 842, Leases. These expenses do not reflect expected future operating expenses and do not contribute to a meaningful evaluation of current operating performance or comparisons to the operating performance in other periods; adjusted EBITDA and non-GAAP net income (loss) exclude stock-based compensation expense related to equity awards granted primarily to our workforce. We exclude stock-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, we note that companies calculate stock-based compensation expense for the variety of award types that they employ using different valuation methodologies and subjective assumptions. These non-cash charges are not factored into our internal evaluation of non-GAAP net income (loss) as we believe their inclusion would hinder our ability to assess core operational performance; adjusted EBITDA and non-GAAP net income (loss) excludes any gain or loss on the extinguishment of debt because it is not reflective of ongoing operating results in the period, and the frequency and amount of such gains and losses vary; adjusted EBITDA and non-GAAP net income (loss) excludes a gain (loss) on insurance proceeds because it is not reflective of ongoing operating results in the period, and the frequency and amount of such gains and losses vary; adjusted EBITDA and non-GAAP net income (loss) excludes a gain (loss) on the revaluation of warrants because it is not reflective of ongoing operating results in the period, and hinders our ability to assess core operational performance; adjusted EBITDA and non-GAAP net income (loss) excludes gains (losses) related to derivative liabilities as they are not reflective of ongoing operating results in the period and hinder our ability to assess core operational performance; adjusted EBITDA and non-GAAP net income (loss) excludes goodwill impairment charges as they do not reflect ongoing operating results in the period and hinders our ability to assess core operational performance; non-GAAP net income (loss) excludes acquisition-related costs including the amortization of acquired intangible assets (primarily consisting of acquired technology), the impairment of acquired intangible assets (if applicable), as well as third-party transaction costs incurred for legal and other professional services. These costs are not factored into our evaluation of potential acquisitions, or of our performance after completion of the acquisitions because these costs are not related to our core operating performance or reflective of ongoing operating results in the period, and the frequency and amount of such costs vary significantly based on the timing and magnitude of our acquisition transactions and the maturities of the businesses being acquired. Although we exclude the amortization of acquired intangible assets from our non-GAAP net income (loss), management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and can contribute to revenue generation; non-GAAP net income (loss) excludes a gain on the sale and/or license of intellectual property. This gain is not related to our core operating performance or reflective of ongoing operating results in the period, and the frequency and amount of such gains are inconsistent; non-GAAP net income (loss) excludes non-cash interest expense as it is not related to our core operating performance or reflective of ongoing operating results in the period; non-GAAP net income (loss) includes income tax adjustments which reflect the current and deferred income tax expense (benefit) and the effect of non-GAAP adjustments; GAAP and non-GAAP net income (loss) per share includes the dilutive, tax effected cash interest expense associated with our 2025 convertible senior notes and Convertible Debentures in periods of net income, as if converted at the beginning of the period; and other companies may calculate these non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures. GoPro, Inc.

Reconciliation of Preliminary GAAP to Non-GAAP Financial Measures

(unaudited)

Reconciliations of non-GAAP financial measures are set forth below:

Three months ended June 30,

Six months ended June 30,

(in thousands, except per share data)

2026

2025

2026

2025

GAAP net loss

$         (51,005)

$         (16,422)

$        (131,825)

$         (63,131)

Stock-based compensation:

Cost of revenue

148

240

292

488

Research and development

1,859

2,681

3,419

5,501

Sales and marketing

760

935

1,335

1,817

General and administrative

1,289

1,260

2,008

2,680

Total stock-based compensation

4,056

5,116

7,054

10,486

Acquisition-related costs:

Research and development

469

469

938

938

General and administrative

1

—

2

3

Total acquisition-related costs

470

469

940

941

Restructuring and other costs:

Cost of revenue

72

(19)

57

(32)

Research and development

1,404

(611)

1,189

(20)

Sales and marketing

222

(64)

97

321

General and administrative

157

636

152

1,779

Total restructuring and other costs

1,855

(58)

1,495

2,048

Non-cash interest expense

3,837

—

5,682

—

(Gain) loss on insurance recovery

—

—

—

(424)

Loss on extinguishment of debt

—

—

8,870

—

(Gain) loss on revaluation of warrants

179

—

(2,571)

—

(Gain) loss related to derivative liabilities

4,789

—

17,993

—

(Gain) loss on sale and/or license of intellectual

     property

—

—

(1,200)

—

Goodwill impairment

—

—

—

18,600

Income tax adjustments

25

(1,062)

92

79

Non-GAAP net loss

$         (35,794)

$         (11,957)

$         (93,470)

$         (31,401)

GAAP and non-GAAP shares for diluted net

     loss per share

171,234

157,843

167,243

157,144

GAAP diluted net loss per share

$            (0.30)

$            (0.10)

$            (0.79)

$            (0.40)

Non-GAAP diluted net loss per share

$            (0.21)

$            (0.08)

$            (0.56)

$            (0.20)

Three months ended June 30,

Six months ended June 30,

(dollars in thousands)

2026

2025

2026

2025

GAAP gross margin as a % of revenue

30.2 %

35.8 %

17.6 %

34.1 %

Stock-based compensation

0.1

0.2

0.1

0.1

Restructuring and other costs

0.1

—

0.1

—

Non-GAAP gross margin as a % of revenue

30.4 %

36.0 %

17.8 %

34.2 %

GAAP operating expenses

$        70,645

$        68,670

$      132,196

$      157,027

Stock-based compensation

(3,908)

(4,876)

(6,762)

(9,998)

Acquisition-related costs

(470)

(469)

(940)

(941)

Restructuring and other costs

(1,783)

39

(1,438)

(2,080)

Goodwill impairment

—

—

—

(18,600)

Non-GAAP operating expenses

$        64,484

$        63,364

$      123,056

$      125,408

GAAP operating loss

$       (38,982)

$       (14,007)

$       (96,227)

$       (59,215)

Stock-based compensation

4,056

5,116

7,054

10,486

Acquisition-related costs

470

469

940

941

Restructuring and other costs

1,855

(58)

1,495

2,048

Goodwill impairment

—

—

—

18,600

Non-GAAP operating loss

$       (32,601)

$        (8,480)

$       (86,738)

$       (27,140)

Three months ended June 30,

Six months ended June 30,

(in thousands)

2026

2025

2026

2025

GAAP net loss

$         (51,005)

$         (16,422)

$        (131,825)

$         (63,131)

Income tax expense

796

1,309

2,641

2,961

Interest expense, net

6,263

916

9,932

1,164

Depreciation and amortization

1,784

1,698

3,578

3,416

POP display amortization

1,786

1,751

3,555

3,483

Stock-based compensation

4,056

5,116

7,054

10,486

(Gain) loss on insurance recovery

—

—

—

(424)

Loss on extinguishment of debt

—

—

8,870

—

(Gain) loss on revaluation of warrants

179

—

(2,571)

—

(Gain) loss related to derivative liabilities

4,789

—

17,993

—

Goodwill impairment

—

—

—

18,600

Restructuring and other costs

1,855

(58)

1,495

2,048

Adjusted EBITDA

$         (29,497)

$          (5,690)

$         (79,278)

$         (21,397)

SOURCE GoPro, Inc.

, /PRNewswire/ -- Simon®, a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations, today reported results for the quarter ended June 30, 2026.

"We delivered excellent financial and operational results this quarter," said Eli Simon, Chief Executive Officer, President and Chief Operating Officer.  "Real Estate FFO per share grew 7.9% year-over-year, supported by consistent broad-based leasing demand, accelerated traffic increases, strong retailer sales growth, and the contribution from acquisitions completed over the past year.  Today, we are once again increasing our guidance for full-year 2026 Real Estate FFO per share."  

Results for the Quarter

Net income attributable to common stockholders was $483.1 million, or $1.49 per diluted share, as compared to $556.1 million, or $1.70 per diluted share in 2025.  Net income for the second quarter of 2025 included a non-cash after-tax gain of $0.21 per diluted share from investment activity. Real Estate Funds From Operations ("Real Estate FFO") was $1.249 billion, or $3.29 per diluted share as compared to $1.154 billion, or $3.05 per diluted share in the prior year, an increase of 7.9%. Funds From Operations ("FFO") was $1.185 billion, or $3.12 per diluted share as compared to $1.189 billion, or $3.15 per diluted share in the prior year, inclusive of the $0.21 per diluted share non-cash after-tax gain in the prior year period. Domestic property Net Operating Income ("NOI") increased 8.5% and portfolio NOI increased 8.3% compared to the prior year period.  Results for the Six Months

Net income attributable to common stockholders was $962.7 million, or $2.97 per diluted share, as compared to $969.8 million, or $2.97 per diluted share in 2025. Real Estate FFO was $2.457 billion, or $6.46 per diluted share as compared to $2.268 billion, or $6.01 per diluted share in the prior year, an increase of 7.5%. FFO was $2.293 billion, or $6.03 per diluted share as compared to $2.194 billion, or $5.82 per diluted share in the prior year.  Domestic property NOI increased 7.6% and portfolio NOI increased 7.5% compared to the prior year period.  U.S. Malls and Premium Outlets Operating Statistics

Occupancy at June 30, 2026 was 96.0%, unchanged from June 30, 2025. Base minimum rent per square foot was $62.42 at June 30, 2026, compared to $58.70 at June 30, 2025, an increase of 6.3%.  Reported retailer sales per square foot was $838 for the trailing 12 months ended June 30, 2026, compared to $736 at June 30, 2025, an increase of 13.9%. Dividends
Today, Simon's Board of Directors declared a quarterly common stock dividend of $2.25 for the third quarter of 2026.  This is an increase of $0.10, or 4.7% year-over-year.  The dividend will be payable on September 30, 2026 to shareholders of record on September 9, 2026. 

Simon's Board of Directors declared the quarterly dividend on its 8 3/8% Series J Cumulative Redeemable Preferred Stock (NYSE: SPGPrJ) of $1.046875 per share, payable on September 30, 2026 to shareholders of record on September 16, 2026. 

Common Stock Repurchase Program
During the quarter ended June 30, 2026, the Company repurchased 793,077 shares of its common stock and 237,618 limited partnership units at an average price of $205.10 per share/unit, for a total investment of $211.4 million.

Capital Markets and Balance Sheet Liquidity
During the quarter, the Company completed 8 secured loan transactions totaling approximately $1.4 billion (U.S. dollar equivalent).  The weighted average interest rate on these loans was 5.36%.

The Company completed a Euro senior notes offering totaling €500 million with a 3.65% coupon rate and term of 5 years.  Proceeds were used for general corporate purposes.

Additionally, the Company closed a $460 million 5-year term loan priced at SOFR +0.70%.  Proceeds were used to repay the $460 million draw under the Company's $5 billion revolving credit facility. 

As of June 30, 2026, Simon had approximately $9.3 billion of liquidity consisting of $1.7 billion of cash on hand, including its share of joint venture cash, and $7.6 billion of available capacity, net of outstanding commercial paper, under its $8.5 billion of total revolving credit facilities.

2026 Guidance
The Company's estimates for net income attributable to common stockholders per diluted share and Real Estate FFO per diluted share for the year ending December 31, 2026 are included in the table below and are reconciled in the Company's supplemental information.  The Company is increasing its outlook for full year 2026 Real Estate FFO per diluted share to $13.20 to $13.30, an increase of $0.08 per diluted share at the midpoint. 

Current

Previous

Low End

High End

Low End

High End

Estimated net income attributable to

common stockholders per diluted share

$6.47

$7.47

$6.61

$6.76

Estimated Real Estate FFO per share

$13.20

$13.30

$13.10

$13.25

Conference Call
Simon will hold a conference call to discuss the quarterly financial results today from 5:00 p.m. to 6:00 p.m. Eastern Daylight Time, Monday, August 10, 2026.  A live webcast of the conference call will be accessible in listen-only mode at investors.simon.com.  An audio replay of the conference call will be available until August 17, 2026.  To access the audio replay, dial 1-844-512-2921 (international +1-412-317-6671) passcode 13761320. 

Supplemental Materials and Website
Supplemental information on our second quarter 2026 performance is available at investors.simon.com. This information has also been furnished to the SEC in a current report on Form 8-K.

We routinely post important information online on our investor relations website, investors.simon.com. We use this website, press releases, SEC filings, quarterly conference calls, presentations and webcasts to disclose material, non-public information in accordance with Regulation FD. We encourage members of the investment community to monitor these distribution channels for material disclosures.  Any information accessed through our website is not incorporated by reference into, and is not a part of, this document.

Non-GAAP Financial Measures
This press release includes FFO, FFO per share, Real Estate FFO, Real Estate FFO per share and domestic and portfolio NOI growth which are financial performance measures not defined by generally accepted accounting principles in the United States ("GAAP"). Real Estate FFO is FFO of the operating partnership less other platform investments and loss (gain) due to disposal, exchange, or revaluation of equity interests, in each case, net of tax; and unrealized losses (gains) in fair value of publicly traded equity instruments and derivative instrument, net.  Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures are included in Simon's supplemental information for the quarter.  FFO and NOI growth are financial performance measures widely used in the REIT industry. Our definitions of these non-GAAP measures may not be the same as similar measures reported by other REITs.

Forward-Looking Statements
Certain statements made in this press release may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although Simon believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, Simon can give no assurance that its expectations will be attained, and it is possible that Simon's actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to: the intensely competitive market environment in the retail real estate industry and the retail industry, including e-commerce; the inability to renew leases and relet vacant space at existing properties on favorable terms; the inability to collect rent due to the bankruptcy or insolvency of tenants or otherwise; the potential loss of anchor stores or major tenants; an increase in vacant space at our properties; the loss of key management personnel; changes in economic and market conditions that may adversely affect the general retail environment, including but not limited to those caused by inflation, the impact of tariffs and global trade disruptions on us to the extent impacting our tenants, recessionary pressures, wars, escalating geopolitical tensions as a result of the war in Ukraine and the conflicts in the Middle East, and supply chain disruptions; the potential for violence, civil unrest, criminal activity or terrorist activities at our properties; the availability of comprehensive insurance coverage; security breaches that could compromise our information technology or infrastructure; changes in market rates of interest; our international activities subjecting us to risks that are different from or greater than those associated with our domestic operations, including changes in foreign exchange rates; the impact of our substantial indebtedness on our future operations, including covenants in the governing agreements that impose restrictions on us that may affect our ability to operate freely; any disruption in the financial markets that may adversely affect our ability to access capital for growth and satisfy our ongoing debt service requirements; any change in our credit rating; our continued ability to maintain our status as a REIT; changes in tax laws or regulations that result in adverse tax consequences; risks associated with the acquisition, development, redevelopment, expansion, leasing and management of properties; the inability to lease newly developed properties on favorable terms; risks relating to our joint venture properties, including guarantees of certain joint venture indebtedness; the effects of climate change; environmental liabilities; natural or other disasters; uncertainties regarding the impact of pandemics, epidemics or public health crises, and the associated governmental restrictions on our business, financial condition, results of operations, cash flow and liquidity; and general risks related to real estate investments, including the illiquidity of real estate investments.

Simon discusses these and other risks and uncertainties under the heading "Risk Factors" in its annual and quarterly periodic reports filed with the SEC.  Simon may update that discussion in subsequent other periodic reports, but except as required by law, Simon undertakes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise.

About Simon
Simon® is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment and mixed-use destinations and an S&P 100 company (Simon Property Group, NYSE: SPG). Our properties across North America, Europe and Asia provide community gathering places for millions of people every day and generate billions in annual sales.

Simon Property Group, Inc.

Unaudited Consolidated Statements of Operations

(Dollars in thousands, except per share amounts)

For the Three Months

For the Six Months

Ended June 30,

Ended June 30,

2026

2025

2026

2025

REVENUE:

Lease income

$ 1,659,709

$ 1,379,454

$ 3,288,240

$ 2,746,882

Management fees and other revenues

40,834

37,931

81,022

71,723

Other income

90,055

81,074

178,429

152,867

Total revenue

1,790,598

1,498,459

3,547,691

2,971,472

EXPENSES:

Property operating

171,440

139,816

342,200

276,637

Depreciation and amortization

459,876

339,058

918,773

667,109

Real estate taxes

131,905

105,315

267,865

212,768

Repairs and maintenance

32,687

26,238

72,888

56,380

Advertising and promotion

39,056

36,310

72,986

70,566

Home and regional office costs

69,842

57,564

137,498

122,630

General and administrative

12,004

14,298

66,303

26,927

Other

49,690

35,663

82,918

66,641

Total operating expenses

966,500

754,262

1,961,431

1,499,658

OPERATING INCOME BEFORE OTHER ITEMS

824,098

744,197

1,586,260

1,471,814

Interest expense

(281,164)

(232,724)

(556,826)

(459,720)

(Loss) gain due to disposal, exchange, or revaluation of equity interests, net

(11,950)

104,499

(18,329)

80,507

Income and other tax (expense) benefit

(10,809)

(35,107)

9,125

(27,470)

Income from unconsolidated entities

119,127

122,875

97,879

153,234

Unrealized losses in fair value of publicly traded equity instruments and

derivative instrument, net

(56,425)

(50,455)

(31,037)

(87,220)

(Loss) gain on acquisition of controlling interest, sale or disposal of, or recovery on, 

assets and interests in unconsolidated entities and impairment, net

(8,747)

(9,604)

55,593

(9,604)

CONSOLIDATED NET INCOME

574,130

643,681

1,142,665

1,121,541

Net income attributable to noncontrolling interests 

90,157

86,714

178,288

150,040

Preferred dividends

834

834

1,669

1,669

NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$ 483,139

$ 556,133

$ 962,708

$ 969,832

BASIC AND DILUTED EARNINGS PER COMMON SHARE:

Net income attributable to common stockholders

$ 1.49

$ 1.70

$ 2.97

$ 2.97

Simon Property Group, Inc.

Unaudited Consolidated Balance Sheets

(Dollars in thousands, except share amounts)

June 30,

December 31,

2026

2025

ASSETS:

Investment properties, at cost

$ 51,094,995

$ 50,946,067

Less - accumulated depreciation

21,382,543

20,701,510

29,712,452

30,244,557

Cash and cash equivalents

1,019,091

823,147

Tenant receivables and accrued revenue, net

884,241

934,077

Investment in other unconsolidated entities, at equity

4,012,480

4,362,339

Investment in Klépierre, at equity

1,377,318

1,505,377

Right-of-use assets, net

731,200

755,934

Deferred costs and other assets

1,972,484

1,981,035

Total assets

$ 39,709,266

$ 40,606,466

LIABILITIES:

Mortgages and unsecured indebtedness

$ 28,699,607

$ 28,430,175

Accounts payable, accrued expenses, intangibles, and deferred revenues

1,806,922

1,954,402

Cash distributions and losses in unconsolidated entities, at equity

1,808,807

1,739,418

Dividend payable

1,318

2,723

Lease liabilities

727,902

756,539

Other liabilities

818,183

1,017,816

Total liabilities

33,862,739

33,901,073

Commitments and contingencies

Limited partners' preferred interest in the Operating Partnership and noncontrolling

redeemable interests

271,827

233,306

EQUITY:

Stockholders' Equity

Capital stock (850,000,000 total shares authorized, $0.0001 par value, 238,000,000

shares of excess common stock, 100,000,000 authorized shares of preferred stock):

Series J 8 3/8% cumulative redeemable preferred stock, 1,000,000 shares authorized,

796,948 issued and outstanding with a liquidation value of $39,847

40,287

40,451

Common stock, $0.0001 par value, 511,990,000 shares authorized, 343,059,947 and

343,060,687 issued and outstanding, respectively

33

33

Class B common stock, $0.0001 par value, 10,000 shares authorized, 8,000

issued and outstanding

-

-

Capital in excess of par value

12,394,125

12,347,192

Accumulated deficit

(5,128,188)

(4,608,136)

Accumulated other comprehensive loss

(233,740)

(251,361)

Common stock held in treasury, at cost, 19,508,432 and 17,844,817 shares, respectively

(2,638,101)

(2,319,911)

Total stockholders' equity

4,434,416

5,208,268

Noncontrolling interests

1,140,284

1,263,819

Total equity

5,574,700

6,472,087

Total liabilities and equity

$ 39,709,266

$ 40,606,466

Simon Property Group, Inc.

Unaudited Joint Venture Combined Statements of Operations

(Dollars in thousands)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2026

2025

2026

2025

REVENUE:

Lease income

$ 937,653

$ 757,888

$ 1,859,445

$ 1,507,695

Other income

103,708

112,941

208,889

207,008

Total revenue

1,041,361

870,829

2,068,334

1,714,703

OPERATING EXPENSES:

Property operating

201,456

165,960

416,398

332,607

Depreciation and amortization

177,211

159,675

362,376

318,687

Real estate taxes

67,310

58,606

133,709

117,398

Repairs and maintenance

23,159

18,204

49,440

38,967

Advertising and promotion

25,085

22,474

50,018

44,623

Other

67,184

61,308

139,469

118,155

Total operating expenses

561,405

486,227

1,151,410

970,437

OPERATING INCOME BEFORE OTHER ITEMS

479,956

384,602

916,924

744,266

Interest expense

(205,540)

(174,995)

(410,577)

(345,363)

NET INCOME

$ 274,416

$ 209,607

$ 506,347

$ 398,903

Third-Party Investors' Share of Net Income

$ 142,119

$ 107,651

$ 258,581

$ 204,248

Our Share of Net Income

132,297

101,956

247,766

194,655

Amortization of Excess Investment (A)

(48,684)

(13,871)

(96,341)

(28,336)

Income from Unconsolidated Entities (B)

$ 83,613

$ 88,085

$ 151,425

$ 166,319

Note:

The above financial presentation does not include any information related to our investments in Klépierre S.A. ("Klépierre"), our other platform investments, and our previously held equity investment in The Taubman Realty Group ("TRG") up to the October 31, 2025 transaction. 

For additional information, see footnote B.

Simon Property Group, Inc.

Unaudited Joint Venture Combined Balance Sheets

(Dollars in thousands)

June 30,

December 31,

2026

2025

Assets:

Investment properties, at cost

$ 21,519,924

$ 22,077,749

Less - accumulated depreciation

10,083,799

9,020,481

11,436,125

13,057,268

Cash and cash equivalents

1,511,847

1,264,619

Tenant receivables and accrued revenue, net

599,064

605,756

Right-of-use assets, net

111,163

108,349

Deferred costs and other assets

645,256

572,826

Total assets

$ 14,303,455

$ 15,608,818

Liabilities and Partners' Deficit:

Mortgages

$ 16,605,493

$ 16,374,773

Accounts payable, accrued expenses, intangibles, and deferred revenue

1,149,481

1,117,855

Lease liabilities

112,971

99,837

Other liabilities

377,817

334,246

Total liabilities

18,245,762

17,926,711

Preferred units

67,450

67,450

Partners' deficit

(4,009,757)

(2,385,343)

Total liabilities and partners' deficit

$ 14,303,455

$ 15,608,818

Our Share of:

Partners' deficit

$ (1,805,176)

$ (1,247,554)

Add: Excess Investment

3,055,376

2,773,173

Our net Investment in unconsolidated entities, at equity

$ 1,250,200

$ 1,525,619

Note:

The above financial presentation does not include any information related to our investments in Klépierre and our other platform investments.

For additional information, see footnote B.

Simon Property Group, Inc.

Unaudited Reconciliation of Non-GAAP Financial Measures (C)

(Amounts in thousands, except per share amounts)

Reconciliation of Consolidated Net Income to FFO and Real Estate FFO

For the Three Months Ended

For the Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Consolidated Net Income (D)

$             574,130

$             643,681

$          1,142,665

$       1,121,541

Adjustments to Arrive at FFO:

Depreciation and amortization from consolidated 

     properties 

455,655

335,157

910,434

659,479

Our share of depreciation and amortization from

     unconsolidated entities, including Klépierre, TRG and other corporate investments

160,762

207,587

322,370

416,551

Loss (gain) on acquisition of controlling interest, sale or disposal of, or recovery on,

assets and interests in unconsolidated entities and impairment, net

8,747

9,604

(55,593)

9,604

Net (gain) loss attributable to noncontrolling interest holders in

     properties

(6,400)

(26)

(12,021)

1,266

Noncontrolling interests portion of depreciation and amortization

(6,917)

(6,346)

(13,202)

(12,339)

Preferred distributions and dividends

(1,032)

(1,126)

(2,064)

(2,252)

FFO of the Operating Partnership (1)

$          1,184,945

$          1,188,531

$          2,292,589

$       2,193,850

FFO of the Operating Partnership (1)

$          1,184,945

$          1,188,531

$          2,292,589

$       2,193,850

Loss (gain) due to disposal, exchange, or revaluation of equity interests, net of tax

9,818

(78,374)

15,136

(60,381)

Other platform investments, net of tax

(2,624)

(6,594)

117,758

47,591

Unrealized losses in fair value of publicly traded equity instruments and derivative instrument, net

56,425

50,455

31,037

87,220

Real Estate FFO (1)

$          1,248,564

$          1,154,018

$          2,456,520

$       2,268,280

Diluted net income per share to diluted FFO per share reconciliation:

Diluted net income per share

$                   1.49

$                   1.70

$                   2.97

$                2.97

Depreciation and amortization from consolidated properties

     and our share of depreciation and amortization from unconsolidated 

     entities, including Klépierre, TRG and other corporate investments, net of noncontrolling 

     interests portion of depreciation and amortization

1.61

1.42

3.21

2.82

Loss (gain) on acquisition of controlling interest, sale or disposal of, or recovery on,

assets and interests in unconsolidated entities and impairment, net

0.02

0.03

(0.15)

0.03

Diluted FFO per share (1)

$                   3.12

$                   3.15

$                   6.03

$                5.82

Loss (gain) due to disposal, exchange, or revaluation of equity interests, net of tax

0.03

(0.21)

0.04

(0.16)

Other platform investments, net of tax

(0.01)

(0.02)

0.31

0.12

Unrealized losses in fair value of publicly traded equity instruments and derivative instrument, net

0.15

0.13

0.08

0.23

Real Estate FFO per share (1)

$                   3.29

$                   3.05

$                   6.46

$                6.01

7.9 %

7.5 %

Details for per share calculations:

FFO of the Operating Partnership

$          1,184,945

$          1,188,531

$          2,292,589

$       2,193,850

Diluted FFO allocable to unitholders

(174,687)

(159,806)

(336,951)

(295,091)

Diluted FFO allocable to common stockholders

$          1,010,258

$          1,028,725

$          1,955,638

$       1,898,759

Basic and Diluted weighted average shares outstanding

324,018

326,487

324,458

326,401

Weighted average limited partnership units outstanding

56,029

50,714

55,903

50,727

Basic and Diluted weighted average shares and units outstanding

380,047

377,201

380,361

377,128

Basic and Diluted FFO per Share

$                   3.12

$                   3.15

$                   6.03

$                5.82

    Percent Change

-1.0 %

3.6 %

(1)

FFO and Diluted FFO per share includes $40.0 million, or $0.10 per share, of accelerated stock compensation expense recorded in the first quarter of 2026, of which $8.3 million, or $0.02 per share, is included in Real Estate FFO and Real Estate FFO per share, and $31.7 million, or $0.08 per share, is included in Other platform investments, net of tax.

Simon Property Group, Inc.

Footnotes to Unaudited Financial Information

Notes:  

(A)

Excess investment represents the unamortized difference of our investment over equity in the underlying net assets of the related partnerships and joint ventures shown therein.  The Company generally amortizes excess investment over the life of the related assets.

(B)

The Unaudited Joint Venture Combined Statements of Operations do not include any operations or our share of net income or excess investment amortization related to our investments in Klépierre, our other platform investments and our previously held equity investment in TRG prior to the October 31, 2025 transaction.  Amounts included in Footnote D below exclude our share of related activity for our investments in Klépierre, our other platform investments and our previously held equity investment in TRG prior to the October 31, 2025 transaction.  For further information on Klépierre, reference should be made to financial information in Klépierre's public filings and additional discussion and analysis in our Form 10-K.

(C)

This report contains measures of financial or operating performance that are not specifically defined by GAAP, including FFO, FFO per share, Real Estate FFO and Real Estate FFO per share.  FFO is a performance measure that is standard in the REIT business.  We believe FFO provides investors with additional information concerning our operating performance and a basis to compare our performance with those of other REITs.  We also use these measures internally to monitor the operating performance of our portfolio. Our computation of these non-GAAP measures may not be the same as similar measures reported by other REITs.

We determine FFO based upon the definition set forth by the National Association of Real Estate Investment Trusts ("NAREIT") Funds From Operations White Paper - 2018 Restatement. Our main business includes acquiring, owning, operating, developing, and redeveloping real estate in conjunction with the rental of retail real estate.  Gains and losses of assets incidental to our main business are included in FFO.  We determine FFO to be our share of consolidated net income computed in accordance with GAAP, excluding real estate related depreciation and amortization, excluding gains and losses from extraordinary items, excluding gains and losses from the sale, disposal or property insurance recoveries of, or any impairment related to, depreciable retail operating properties, plus the allocable portion of FFO of unconsolidated joint ventures based upon economic ownership interest, and all determined on a consistent basis in accordance with GAAP. However, you should understand that FFO does not represent cash flow from operations as defined by GAAP, should not be considered as an alternative to net income determined in accordance with GAAP as a measure of operating performance, and is not an alternative to cash flows as a measure of liquidity.

(D)

Includes our share of: 

-

Gain on land sales of $0.0 million and $1.2 million for the three months ended June 30, 2026 and 2025, respectively, and $1.8 million and $1.2 million for the six months ended June 30, 2026 and 2025, respectively.

-

Straight-line adjustments increased income by $19.0 million and $3.7 million for the three months ended June 30, 2026 and 2025, respectively, and $24.9 million and $5.9 million for the six months ended June 30, 2026 and 2025, respectively.

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Amortization of fair market value of leases increased income by $0.4 million and $0.3 million for the three months ended June 30, 2026 and 2025, respectively, and $0.6 million and $0.6 million for the six months ended June 30, 2026 and 2025, respectively.

SOURCE Simon

Key Takeaways Sea's OpenAI partnership targets AI-powered e-commerce across Southeast Asia and Brazil.Shopee's AI tools helped lift purchase conversion 14% year over year in the first quarter.Sea's AI chatbot handles about 80% of queries, cutting customer-service cost per contact around 30%. Sea Limited (SE - Free Report) has added a concrete artificial intelligence (AI) catalyst to Shopee through a strategic partnership with OpenAI. The June agreement targets AI-powered e-commerce across Southeast Asia and Brazil, broader access to ChatGPT and deeper developer engagement through Codex.

For investors, the opportunity is practical rather than purely promotional. Shopee already uses AI in search, recommendations, seller tools and customer service, giving Sea a base from which the OpenAI relationship could extend commerce functionality.

Sea’s OpenAI Deal Targets E-Commerce InnovationThe partnership is designed to bring OpenAI technology into markets where Shopee already operates at large scale. Shopee generated $37.3 billion of gross merchandise value in the first quarter of 2026, up 30.2% year over year, on 4 billion gross orders.
 

MercadoLibre (MELI - Free Report) operates a major online commerce and fintech ecosystem in Latin America. Alibaba (BABA - Free Report) owns Lazada, a leading e-commerce platform across six Southeast Asian markets. AI-enabled discovery and seller tools could become another way for Shopee to differentiate.

SE Could Extend AI Across Shopee Users and SellersThe Shopee App is now available in ChatGPT across Indonesia, Malaysia, the Philippines, Singapore, Thailand, Taiwan, Vietnam and Brazil. Users can discover Shopee products through conversational prompts before continuing the shopping journey on Shopee.

Sea also plans to broaden OpenAI access through ShopeeVIP and introduce ChatGPT for Business to eligible sellers. That expands the potential use cases from product discovery to listing creation, marketing content, customer service workflows and business automation.

Sea’s AI Center Adds Infrastructure Behind the PushSea established an Artificial Intelligence Centre of Excellence in Singapore in April with support from Digital Industry Singapore. The center is focused on foundational AI, scalable deployment and AI-native talent and operating models.

That infrastructure complements the OpenAI partnership. Sea said its Compass Max v3.5 foundation model and variants are already powering AI features across Shopee, indicating that the company is building both internal capabilities and external partnerships around the technology.

SE’s AI Opportunity Comes With Higher SpendingSea’s AI ambitions sit alongside a broader investment agenda. The AI center is expected to support research, engineering and product development, while Shopee is separately investing in delivery, fulfillment, the ShopeeVIP membership program and user acquisition.

Those investments have a near-term earnings cost. Shopee adjusted EBITDA declined to $223.2 million in the first quarter from $264.4 million a year earlier, even as marketplace monetization strengthened.

Sea Must Turn AI Investment Into Better EconomicsThe important test is whether AI improves engagement, monetization or operating efficiency. Sea said AI-powered search, recommendations and seller content tools supported a 14% year-over-year improvement in purchase conversion in the first quarter.

There are already efficiency signals. About 80% of customer queries are handled by Sea’s AI chatbot, helping reduce customer-service cost per contact by around 30% year over year. Sustaining those gains while protecting Shopee profitability would strengthen the economic case for further AI deployment.

SE’s Ratings Keep the AI Story in PerspectiveThe OpenAI partnership adds a credible technology catalyst, but it does not remove near-term execution risk. Sea must continue converting higher Shopee activity and AI adoption into better unit economics while funding logistics, membership and user-acquisition initiatives.

The stock currently carries a Zacks Rank #4 (Sell). Sea also has a Growth Score of A, Momentum Score of B, Value Score of C and VGM Score of B. The favorable Growth and Momentum Scores point to attractive underlying characteristics, but the Style Scores complement rather than override the Zacks Rank, keeping the near-term investment view measured.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Software stocks are staging a comeback in the second half of the year, according to Jefferies analysts, who pointed to strong results from ServiceNow Inc (NYSE:NOW, XETRA:4S0), SAP, Roper Technologies, Atlassian (NASDAQ:TEAM) and Cloudflare as evidence the sector is shaking off fears of AI-driven disruption.

Solid earnings beats, healthy margins and early signs of AI monetization through consumption growth and product up-tiering are easing investor concerns about software companies' long-term value, the analysts said.

Since an April 10 low, the iShares Expanded Tech-Software ETF has outperformed the VanEck Semiconductor ETF by four percentage points.

Jefferies analysts said the rally is highly selective. Atlassian (NASDAQ:TEAM) shares have surged more than 160% since the April low, while HubSpot has gained less than 10% over the same period. Demand continues to outpace supply, with power, labor and permitting now the primary bottlenecks rather than chip availability. National data center vacancy sits below 1.4%, and under 1% in Northern Virginia, with the buildout expected to run more than three years, the analysts said, adding they see no sign of a bubble forming.

Transformers and gas turbines now carry lead times of four to five years, with suppliers largely sold out through 2030 and 2031, the expert said, while utilities increasingly require data center operators to bring their own power. Skilled labor is also thinning and project cancellations are rising, adding further strain to permitting timelines.

The analysts said elevated capital expenditure across Microsoft, Amazon, Google and Meta should persist as a result.

Jefferies analysts also addressed recent leadership changes at Google parent Alphabet Inc (NASDAQ:GOOG), after Jeff Dean said on August 5 he would leave the company alongside several senior researchers to launch an AI startup called Discovery Loop. Demis Hassabis moved from his role as CEO of DeepMind to Chief Scientist at Google, with Koray Kavukcuoglu taking over leadership of DeepMind.

The analysts said the changes do not alter Google's AI trajectory, arguing the company's competitive advantage rests on its data assets, vertically integrated AI platform and global distribution rather than any individual researcher. Jefferies said its thesis remains that AI represents an infrastructure and monetization race, and that Google's scale, accelerating Gemini adoption, Cloud profitability and continued AI investment position it to remain a long-term winner.

Shares of the electric vehicle company Lucid Group (LCID -6.11%) rose last month after the company denied rumors that it was considering filing for bankruptcy protection or going private.

Lucid stock also gained significant momentum toward the end of July after an SEC filing showed that Prince Al Waleed bin Talal Al Saud, a member of the Saudi royal family, bought 19.5 million shares of the company in mid-July.

Investors were clearly happy with both pieces of news, and Lucid stock gained 10.3% last month, according to data from S&P Global Market Intelligence.

Image source: Lucid Group.

A strong rebound after a very rough start July started pretty rough for Lucid after an EV blog published an article saying Lucid was considering filing for bankruptcy protection or going private. Lucid's management quickly denied the rumor, with CEO Silvio Napoli released a statement saying,

"Lucid is not considering bankruptcy or a transaction to take the company private. Those reports are false. The Board did not explore either scenario. Period."

He added later in the statement that, "Lucid has sufficient liquidity to fund its operations well into next year."

Investors were obviously happy with Napoli's statement, and they received more good news when an SEC filing showed that Prince Al Waleed bin Talal Al Saud bought an additional 19.5 million shares of Lucid during the month, equivalent to about a 5% stake in the company. The Saudi Arabian Public Investment Fund (PIF) owns an estimated 60% of Lucid.

With Lucid putting shareholders' fears to rest and the company benefiting from a large purchase of shares from a key investor, investors boosted Lucid's stock in July.

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Lucid's stock slid following second-quarter results Lucid reported its second-quarter results (which ended June 30) in the first week of August, and investors were enthused with what they saw. Revenue rose 56% from the year-ago quarter to $405 million but was below Wall Street's consensus estimate of $416 million.

Lucid's $3.30 loss per share also missed the average analyst estimate of $2.46 per share.

Lucid's management also announced an "operational reset" for the company, identifying $1.4 billion in cash-flow improvement opportunities, advancing its Robotaxi technology, completing its AMP-2 factory in Saudi Arabia, and launching its upcoming midsize models.

What's clear right now is that the company certainly has its work cut out for it, and with its share price plunging 69% over the past 12 months, many investors have lost faith that Lucid can turn things around.

At $82.83, Rocket Lab (NASDAQ:RKLB | RKLB Price Prediction) presents a scale-in research case for investors building a five-year position in the space economy. The stock has pulled back sharply from its $151 52-week high, creating a discounted entry into a name levered to nearly every current defense-space tailwind.

Rocket Lab is the second-largest Western launch provider after SpaceX, with the Electron rocket, the HASTE hypersonic testbed, and a fast-expanding space systems business spanning satellites, solar arrays, laser optical comms, and payloads. A string of acquisitions Mynaric AG, Motiv Space Systems, and the $325M Geost deal has turned it into a vertically integrated prime contractor.

The share price ran from roughly $55 last November to triple-digits earlier this year on defense wins and Neutron progress, then gave back gains this summer.

The Bull Case: A Defense-Space Prime in the Making Q1 FY2026 was a breakout quarter. Revenue hit $200.35 million, up 63.5% year over year, beating consensus, while non-GAAP gross margin expanded to 43.0% from 33.4%. Backlog swelled to $2.20 billion, and the company signed 31 new Electron/HASTE contracts plus 5 Neutron missions in a single quarter.

The catalyst stack is dense. An $816 million Space Development Agency award for 18 Tranche 3 satellites is the largest in company history. Rocket Lab was picked for the Department of War’s Golden Dome Space Based Interceptor program with Raytheon and for the MDA SHIELD program, worth up to $151 billion. The Neutron medium-lift reusable rocket is on track for a debut launch later this year.

Analyst positioning skews bullish: 14 Buy or Strong Buy ratings versus 3 Holds and zero Sells. Revenue has grown from $62.2 million in 2021 to $601.8 million in 2025.

The Bear Case: Losses, Dilution, and Insider Exits Rocket Lab is still deeply unprofitable. FY2025 posted a net loss of $198.2 million and free cash flow of negative $321.8 million. R&D jumped to $270.7 million, and stock-based comp hit $71 million for the year. The company raised $450 million via ATM in Q1 alone, diluting holders.

Valuation is aggressive. Price-to-sales sits at 76x, and there is no meaningful P/E because earnings are negative. Neutron has already slipped once after a stage-1 tank test failure. Insiders have been sellers: CEO Peter Beck executed 24 separate disposals across July 6-8, 2026, at prices ranging from $81.59 to $101.57, while the CFO, COO, and General Counsel sold in the $139-$150 range in late May.

The Case for Patience: Wait for Neutron Proof Neutron is the swing factor. A successful debut unlocks medium-lift revenue, national security launch competition, and constellation deployment economics. A second delay or test failure would reset the narrative. Beta of 2.629 guarantees volatility, and the 35% one-month drawdown shows how quickly enthusiasm can invert.

The Data: Above Consensus, Above the S&P Shares trade at $82.83 against a Wall Street consensus target of $111.31, implying 34.38% upside across 17 covering analysts. RKLB is up 18.74% year-to-date and 87.36% over the trailing year, well ahead of the S&P 500 over the same stretch. Over five years, the stock is up 615.9%.

The Verdict: A Case for Scaling In At $82.83, Rocket Lab warrants a closer look. A framework some investors consider involves a 30% to 50% starter position at $133 to $135, with reserve capital added on macro pullbacks toward a $110 to $115 support floor. Shares have already fallen well below both bands, strengthening the case for accumulation.

The path to appreciation is Neutron’s debut, execution against the $2.20 billion backlog, and continued capture of Golden Dome and SHIELD dollars. The thesis breaks if Neutron fails a second time, if margin expansion reverses, or if dilution outpaces revenue growth. Insider selling is a yellow flag; CEO Beck’s July disposals deserve monitoring on the next 13F cycle.

Watch Neutron milestones, gross margin durability above 40%, and backlog conversion into recognized revenue. The cost of waiting for perfect clarity is missing a rerating tied to Neutron success.

A tranche-based approach at these levels would offer exposure to the defense-space cycle without concentrating risk on a single launch outcome.

Contact [email protected] for any questions or corrections.

Berkshire Hathaway (BRKA +1.37%)(BRKB +1.05%) spent about $4.5 billion repurchasing its stock in the second quarter, the company said in Saturday's earnings report. It was Berkshire's biggest quarter of buybacks in nearly two years -- and 19 times the $235 million it spent in the first quarter. Measured against the company's roughly $1.12 trillion market value, three months of buying retired about 0.4% of Berkshire.

That market value comes from the 1,431,693 Class A equivalent shares Berkshire reported outstanding on June 30 and Friday's $521.80 close for the Class B shares (each equal to 1/1,500th of an A share).

Image source: Getty Images.

The pace is what's new -- and to me, it's the story. Berkshire repurchased no shares at all in 2025, Warren Buffett's final year as CEO. Not only did buybacks resume in March under CEO Greg Abel, but they accelerated sharply in the second quarter.

Berkshire's buyback rule leaves the decision to one person's judgment: The CEO, after consulting the chairman, must believe the shares sell for less than the company is conservatively worth. Abel evidently believes it, even with the stock trading near its 52-week high of $525.

The buying didn't stop when the quarter did. The new 10-Q filing lists share counts as of July 29 on its cover page. They show about 4,600 more Class A equivalent shares retired after June 30 -- shares worth about $3.6 billion at Friday's close.

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Could the buying keep scaling? The program's only hard limit is liquidity: No repurchases can be made if they would pull Berkshire's cash, cash equivalents, and Treasury bills below $30 billion. That war chest stood at about $365.5 billion on June 30, down from about $397 billion three months earlier, as Abel found other uses for it. So the binding constraint is Abel's judgment of value, not cash.

Berkshire pays no dividend, so repurchases are the one way the company returns cash directly to its shareholders. For a shareholder, the arithmetic so far is modest. Retiring 0.4% of the shares in a quarter -- likely 1.5% to 2% a year if that pace holds -- nudges per-share figures rather than transforming them.

Of course, buybacks near a 52-week high can look like bad timing if the judgment on value is wrong. But Abel has kept at it, from the first purchases in March into July. That, more than the 0.4%, is probably the thing worth remembering from Saturday's report.

Key Takeaways IVZ hit a new 52-week high of $32.55 before closing at $31.69, extending its recent strong momentum.Invesco's restructuring, hybrid platform, and product expansion support efficiency and long-term growth.IVZ's AUM reached a record $2.47 trillion, backed by strong inflows across ETFs, QQQ, and other products. Invesco Ltd. (IVZ - Free Report) shares touched a new 52-week high of $32.55 during Friday’s trading session before closing at $31.69, below the session's peak.

Over the past six months, shares of IVZ have rallied 17.2% against the industry's decline of 0.4%. Additionally, its close peers, Franklin Resources, Inc. (BEN - Free Report) and BlackRock, Inc. (BLK - Free Report) , have gained 20.1% and 4%, respectively, while AllianceBernstein Holding L.P. (AB - Free Report) has declined 7% over the same period.

6-Month Price Performance

Image Source: Zacks Investment Research

Does Invesco stock have more upside left despite recently touching its 52-week high? Let us find out.

Factors Aiding Invesco’s StockStrategic Restructuring Efforts: Invesco has been undertaking business restructuring initiatives to streamline operations, improve efficiency, and optimize its global business. In June, the company completed the sale of its Canadian fund management business to CI Global Asset Management (CI GAM), involving management agreements for approximately C$27 billion in assets under management.

As part of the transaction, Invesco affiliates will continue to provide portfolio management services for 61 funds representing approximately C$13 billion in AUM through a long-term sub-advisory arrangement. This enables Invesco to retain strategic exposure to the Canadian market while reducing the operational resources required to manage the fund business directly.

In addition, Invesco shifted its India partnership to a minority stake and sub-advisory role, which is expected to reduce operating expenses while retaining strategic exposure to the market. These initiatives are being undertaken alongside the rollout of the company's hybrid investment platform, which remains on track for completion by year-end 2026. The platform is expected to simplify Invesco's investment architecture, support future cost savings, and avoid incremental costs beginning in 2027.

Consistent AUM Growth: Invesco has witnessed strong growth in its AUM, supported by robust client demand across ETFs, index products, QQQ, private markets, and fixed income. During the first six months of 2026, net long-term inflows totaled nearly $67 billion, compared with $27.9 billion in the year-ago period. Ending AUM was $2.47 trillion as of June 30, 2026, up 23.4% year over year, while average AUM increased 24.8%.

The company's diversified investment capabilities are also helping it capture changing client preferences. Despite shifts in the asset mix, Invesco's net revenue yield remained relatively stable at 22.4 basis points in the second quarter of 2026 compared with 23.2 basis points a year ago.

Net Revenue Yield & Average AUM Trend

Image Source: Invesco Ltd.

The resilience in revenue yield, despite strong growth in lower-yielding products such as ETFs and Index products, supports the quality of Invesco's AUM growth. Continued product expansion and broad investment capabilities should help the company capture evolving client demand and support AUM and revenue growth over the long term.

Hence, this reinforces steady momentum in the top line, with the Zacks Consensus Estimate rising 15.28% for 2026 and 9.58% for 2027.

Sales Estimate

Image Source: Zacks Investment Research

Strong Balance Sheet Supports Capital Distribution Activities: Invesco maintains a solid balance sheet position, supported by improving liquidity and declining leverage. As of June 30, 2026, cash and cash equivalents were $915.4 million, while total debt declined to $1.62 billion from $1.97 billion at the end of the first quarter. Further, the leverage ratio, including preferred stock, improved to 1.9 from 2.3 in the prior quarter and 2.7 in the year-ago quarter. With no major debt maturities until 2028 and investment-grade credit ratings, Invesco has adequate financial flexibility to meet operational needs and support capital distribution activities.

The company maintains a share repurchase program, with nearly $0.7 billion remaining under the authorization. It also pays regular dividends, raising its quarterly payout by 2.4% to 21.5 cents per share in April 2026, following increases in 2025, 2024, and 2023. Over the past three years, Invesco's dividend yield has generally remained above the industry's average. Currently, the stock offers a dividend yield of 2.72%, compared with the industry's 2.38%.

Dividend Yield

Image Source: Zacks Investment Research

Strong Global Footprint: Invesco has established a broad global presence, with operations spanning the United States, Asia Pacific, EMEA, and other key international markets. As of June 30, 2026, Asia Pacific and EMEA accounted for 15% and 16% of total AUM, respectively, with AUM in these regions increasing 23.4% and 28.7% year over year. The company generated net long-term inflows of $21.4 billion in Asia Pacific and $13.7 billion in EMEA during the first half of 2026.

Its China JV also reached record AUM of $163.2 billion and generated $19.2 billion in total net inflows. Invesco's acquisition of Europe-based Source has further strengthened its ETF capabilities and international reach. This diversified global footprint provides multiple avenues for growth as clients increasingly rebalance portfolios across regions, asset classes and investment channels.

Concerns for InvescoInvesco's financial performance remains sensitive to revenue mix, rising expenses and its sizable intangible asset base. Operating expenses increased at a CAGR of 6.2% over the five years ended 2025, with hybrid platform implementation costs expected to remain elevated through 2026. In addition, goodwill and net intangible assets totaled $12.31 billion, or 45% of total assets, exposing the company to potential impairment charges if market conditions or earnings weaken. Although these investments are expected to support operating leverage over time, higher costs, changing product mix, and potential impairment charges could pressure near-term earnings.

Earnings Estimates for IVZ and Valuation AnalysisAnalysts remain optimistic about Invesco's earnings growth prospects. The Zacks Consensus Estimate for 2026 earnings has been revised over the past 30 days to $2.80 per share, up 8.1%, while the 2027 estimate has risen to $3.22, up 8.1%, over the same period.

The upward revisions reflect expectations of continued AUM growth, strong inflows, and benefits from the company's transformation initiatives. The current estimates imply year-over-year growth of 37.9% in 2026 and 15% in 2027, respectively.

Earnings Revision Trend

Image Source: Zacks Investment Research

The earnings trajectory reflects Invesco's ongoing transformation, including efforts to improve its product mix, capture greater economics from key investment vehicles, and enhance operating efficiency. Continued AUM growth, strong inflows, and margin expansion could support earnings growth in the coming periods, providing a fundamental backdrop for the stock's recent strength.

In terms of valuation, IVZ appears attractively valued relative to the industry. The stock currently trades at a forward 12-month P/E multiple of 10.33X, below the industry's 13.83X. The discount, coupled with the company's improving earnings outlook, suggests that the stock may have further upside potential.

Price-to-Earnings F12M

Image Source: Zacks Investment Research

Invesco trades at a premium to AllianceBernstein, while it is inexpensive compared with BlackRock and Franklin Resources. At present, AllianceBernstein has a forward 12-month P/E of 10.02, while BlackRock and Franklin Resources trade at forward 12-month P/E of 18.69X and 10.85X, respectively.

Parting Thoughts on InvescoInvesco's strong AUM growth, strategic restructuring efforts, diversified investment offerings, and improving earnings outlook are expected to support long-term growth. Further, its strengthening balance sheet and consistent capital distribution activities underscore financial flexibility and a shareholder-friendly approach. The stock also appears attractively valued relative to the industry.

Though sensitivity to revenue mix, a rising expense base, and high intangible asset exposure remain near-term concerns, IVZ’s attractive valuation makes it a good investing choice.

The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Vistra Corp. (VST - Free Report) reported $4.02 billion in revenue for the quarter ended June 2026, representing a year-over-year decline of 5.5%. EPS of $1.80 for the same period compares to $1.01 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $6.29 billion, representing a surprise of -36.17%. The company delivered an EPS surprise of +16.88%, with the consensus EPS estimate being $1.54.

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

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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

Total retail electricity sales volumes: 31,800.00 GWh versus 34,031.77 GWh estimated by two analysts on average.Adjusted EBITDA- Retail: $773 million versus $750.28 million estimated by two analysts on average.Adjusted EBITDA- West: $68 million versus the two-analyst average estimate of $53.37 million.Adjusted EBITDA- East: $642 million compared to the $627.65 million average estimate based on two analysts.Adjusted EBITDA- Texas: $311 million versus $232.31 million estimated by two analysts on average.View all Key Company Metrics for Vistra here>>>

Shares of Vistra have returned -11.5% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways Coherent's Q4 revenues should benefit from strong 800G, 1.6T transceiver, OCS and CPO demand.COHR's capacity expansion includes doubling internal indium phosphide output and ramping 6-inch production.Coherent's richer 1.6T mix and manufacturing efficiencies may aid margins despite higher spending. Coherent Corp. (COHR - Free Report) will report its fourth-quarter fiscal 2026 results on Aug. 12, after the bell.

The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at $1.62, indicating 62% growth from the year-ago reported quarter. The consensus estimate for total revenues stands at $1.99 billion, indicating 30% year-over-year growth. There has been one positive revision to analyst estimates in the past 30 days versus no negative revisions.

                                                                  Image Source: Zacks Investment Research

The company has a strong history of earnings surprises. Earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and matched once, with an average earnings surprise of 6.2%.

COHR’s Higher Chance of Q3 Earnings BeatOur model predicts a likely earnings beat for COHR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

COHR has an Earnings ESP of +2.65% and a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Coherent’s Q4 Growth Hinges on AI Demand, Capacity Expansion and Margin GainsFiscal fourth-quarter revenues are likely to have benefited from exceptional demand in Datacenter & Communications, led by 800G and rapidly ramping 1.6T transceivers, OCS systems and initial scale-out CPO revenues. Capacity expansion is another key catalyst, with Coherent accelerating the doubling of internal indium phosphide output and ramping 6-inch production. Improving industrial demand could provide additional support. On the bottom line, higher volumes, a richer 1.6T mix and 6-inch manufacturing efficiencies should aid gross margins. However, sequentially higher capital investment and operating expenses may temper profitability gains.

COHR Stock Experiencing GrowthCoherent shares have gained a massive 195% over the past year and 12% in the past month. This performance clearly indicates consistent growth in the stock.

Based on forward 12-month Price/Earnings, COHR is currently trading at 42.32X, way above the industry’s 21.7X. If we look at the forward 12-month Price/Sales ratio, the company’s shares are currently trading at 7.27X forward sales, well above the industry’s 2.8X.

                                                                      Image Source: Zacks Investment Research

Coherent is a Hold Ahead of Q4 EarningsCoherent’s strong demand backdrop, expanding AI-driven Datacenter & Communications business, and accelerating capacity investments support its long-term growth prospects. Improving product mix and manufacturing efficiencies could also aid profitability as production ramps. However, the stock’s sharp appreciation and premium valuation suggest that much of the optimism surrounding these growth drivers may already be reflected in the share price. With expectations elevated heading into the fiscal fourth-quarter report, any disappointment in execution, margins or the pace of capacity conversion could pressure the stock. Investors may therefore prefer to maintain existing positions and await greater clarity after earnings, making COHR a Hold.

Peer ViewAmong U.S.-listed peers, Lumentum Holdings (LITE - Free Report) and IPG Photonics (IPGP - Free Report) offer useful comparisons for investors evaluating Coherent. Like Coherent, both LITE and IPGP operate in optical components and photonics markets that benefit from increasing demand for high-speed data communications and advanced laser technologies. However, Coherent currently stands apart because of its unusually strong AI infrastructure exposure, record backlog extending into 2028, long-term supply agreements through 2030, and a significantly strengthened balance sheet following NVIDIA's strategic investment. These factors have helped improve earnings visibility and differentiate Coherent's growth profile within the photonics industry.

3 Ways to Play the Data Center Land GrabEquinix NASDAQ: EQIX executives said customer conversations, tight capacity conditions and continued demand for interconnected digital infrastructure supported the company’s recently increased long-term growth outlook, while highlighting Dallas, Chicago and Silicon Valley as important markets in its U.S. West region.

The company is targeting annual revenue growth of 10% to 13% and adjusted funds from operations, or AFFO, per-share growth of 9% to 12%, according to comments made during an investor discussion. Guy Danskine, Equinix’s Managing Director of West Americas, said the company has spent significant time discussing the durability of demand with customers.

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3 REITs to Watch as AI Data Center Spending Surpasses Office Construction“The more of those conversations we’ve had, the more conviction we’ve had just around our forward-looking guidance,” Danskine said.

Ryan Burke, Equinix’s Vice President of Investor Relations, said the company’s focus on core markets, critical workloads, colocation and enterprise customers distinguishes it from the broader data-center industry. He cited operational barriers to entry and limits on new supply, as well as the company’s long operating history and internal analytics, as factors supporting its outlook.

New Regional Structure Focuses on Asset Returns 3 Smart Investments If Interest Rates Stay Higher for LongerDanskine, who previously led Equinix’s Australian business for six years and earlier managed several hyperscale customer relationships in the U.S., said his West Americas position is a newly created role. The region includes Texas, Illinois, California and other western U.S. markets.

Equinix introduced the regional-management approach in the U.S. to add discipline around sub-regional assets, returns on invested capital, asset optimization and risk mitigation, he said. His priorities include unlocking capacity in existing facilities, pursuing expansions in established markets, evaluating new markets and considering broader regional opportunities, including potential mergers and acquisitions.

Capacity remains the company’s top operational priority, Danskine said. Equinix is looking for ways to recover and optimize available space and power in existing assets, including through equipment refresh cycles. Replacing end-of-life equipment such as power distribution units and computer room air handler units can improve efficiency or capacity and enable higher power density, he said.

New facilities are also being designed to accommodate technologies such as liquid cooling, allowing customers to deploy higher-density systems. Danskine said customers in next-generation builds are seeking cabinet densities of 40 kilowatts to more than 60 kilowatts, which changes how sites must be designed.

Dallas Remains a Key Market Danskine said investors should view Equinix’s Texas exposure primarily through the lens of Dallas rather than West Texas, where data-center development has received heightened attention. Equinix’s activities in Dallas are centered around its Infomart asset, acquired roughly seven or eight years ago, and the company wants expansions to remain close to that facility because of the economics associated with proximity.

He said a number of Equinix assets, including planned expansions, fall below a 75-megawatt threshold discussed by Texas state officials. The company remains “incredibly bullish” on Dallas, which Danskine called one of Equinix’s leading global markets. He pointed to the market’s interconnected infrastructure, land under control, relatively better power availability, financial-services activity and business environment.

Chicago is also a major market, particularly for financial-services customers, while Silicon Valley remains important despite higher construction and energy costs. Danskine said some customers continue to require a Silicon Valley presence because of proximity to customers, employees and investors.

Customer location requirements vary by workload, he said. High-frequency trading firms in Chicago may need to remain in the downtown area, for example, while back-office workloads can be located farther away, such as in Minooka. Equinix is expanding in the Chicago metro with a hybrid xScale campus in Minooka and expects enterprise demand to extend across the market.

Interconnection Opportunity Expands With AI Burke said Equinix added 9,700 net interconnections in the latest quarter, which was described during the discussion as a company record. He said demand reflects both traditional customer workloads and an accelerator layer associated with the early stages of artificial-intelligence adoption.

Interconnection demand often follows the deployment of space and power, Burke said, and customers increasingly require distributed workloads, data and network connectivity. Danskine added that network density is forming around neocloud providers and large language model ecosystems as those companies shift their focus from securing compute capacity to distributing that compute to users.

Equinix is also expanding managed solutions that help customers enable infrastructure within its facilities. Danskine said the company is being intentional about attracting targeted customers in each metro, including network components of neocloud customer deployments. He characterized the focus as being on inferencing and the networking layers rather than AI training workloads.

Power, Supply Chain and Talent Remain Areas of Focus Burke said Equinix has approximately 3 gigawatts of land and power secured or near secured. He said the company generally has a high degree of certainty around projects included in its reported development pipeline.

Danskine said Equinix’s announced power requirements are largely under control and that its relationships with utilities benefit from the company’s 20- to 25-year presence in many markets. Unlike developers seeking very large amounts of power immediately, Equinix can provide utilities with more predictable demand schedules, he said.

Looking ahead, Danskine identified supply-chain complexity and a shortage of qualified data-center workers as key issues being closely managed. The company is working with communities and educational institutions to increase awareness of data-center careers and broaden the available talent pool, he said.

About Equinix (NASDAQ:EQIX)Equinix, Inc is a global provider of digital infrastructure and interconnection services, specializing in carrier-neutral data centers and colocation. The company operates a platform that enables enterprises, cloud and network service providers, and content companies to colocate IT infrastructure, interconnect directly with partners and providers, and access cloud on-ramps and network services in a secure, low-latency environment.

Equinix's offerings include traditional colocation space and power, cross-connects and meet-me rooms, and a suite of connectivity and on-demand services designed for hybrid multicloud architectures.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Shares of MP Materials (NYSE:MP) are extending a powerful rebound, trading up 6.76% to $54.56 in the Monday session after opening at $51.11. The move caps a torrid stretch in which MP has rallied 23.54% over the past week, snapping back sharply from an August 7 close that still leaves the stock down 28.08% over the past year.

Earnings Beat and Gadolinium Deal Fuel the Rebound The catalyst traces back to MP Materials’ Q2 FY26 report on August 6, when the only fully integrated U.S. rare earth producer posted revenue of $108.49 million, up 89% year over year and beating the $95.95 million consensus by 13.08%. The engine was NdPr oxide and metal sales, which surged 277% to $94.43 million on separated product volumes of 1,006 metric tons. Adjusted EBITDA swung to $28.49 million from a $12.54 million loss a year ago.

Adjusted EPS came in at -$0.01, missing expectations for a roughly breakeven result and snapping a five-quarter EPS beat streak, weighed down by $14.43 million in start-up costs at the Independence magnet facility. Investors looked past the miss. The bigger story: a sizable nine-figure, multi-year gadolinium offtake with a U.S. aerospace and defense customer at locked-in pricing, plus accelerating construction at the 10X facility and the launch of Project Swarm to aggregate rare earth magnet demand from U.S. drone makers.

CEO James Litinsky framed the quarter with unusual conviction, telling investors, “When I look at all of the conversations we’re having and the potential demand that we see, I don’t lose any sleep about filling out the demand for this facility…I actually think that we’ll have the ability to be somewhat of a kingmaker in a couple of verticals.”

Rare Earth and Critical Minerals Peers Ride the Wave The rally is broad-based. Rare earth and critical mineral names have moved together over the past week as investors position around U.S. supply chain policy and defense-linked offtakes. The table below prioritizes today’s session move alongside the one-week context and current market cap.

Ticker / Company Today 1-Week Market Cap MP (MP Materials) +6.76% +23.54% $9.76B USAR (USA Rare Earth) -0.31% +29.30% $4.80B UUUU (Energy Fuels) +0.04% +23.60% $3.53B NB (NioCorp Developments) +2.15% +25.97% $797M LAC (Lithium Americas) +0.77% +12.54% $1.19B The pattern is clear. Every U.S.-listed peer in the group has rallied double digits over the past week, with USAR up 29.30% and UUUU up 23.60%. That tells you MP’s move is riding a broader wave of investor conviction in the domestic critical minerals theme, but MP is the one carrying the fundamental catalyst: real revenue growth, government backing via a Department of War loan for samarium oxide production, and locked-in aerospace pricing. The stock trades at 21.86 times sales against an analyst target of $77.47, with 13 Buy and 5 Strong Buy ratings and no Sell calls on the sheet.

Helping out the sector was a roundtable at the white house on American mining last Friday. In addition, there’s been plenty of ‘bullish’ news in the broader AI space that’s creating incremental demand for rare earth companies. Researcher Semi Analysis released a report last Friday that SpaceX is targeting $300 to $500 billion in capital expenditures by the end of 2027, and this total could be in line with spending from Alphabet and Amazon. That level of investment would point to data center spending growing more than 50% again in 2027.

What to Watch Next The next real catalysts are operational milestones. MP guided Q3 NdPr production above 1,000 metric tons with realized pricing in the high $90s per kilogram, and expects first commercial magnet shipments to General Motors in Q4 2026. Keep an eye on the $58.22 200-day moving average as the next technical checkpoint.

Contact [email protected] for any questions or corrections.

Key Takeaways MTZ gained 25.9% YTD as record backlog, improving margins and infrastructure demand fueled momentum.MasTec raised 2026 guidance to $18.2B in revenues, $1.6B EBITDA and adjusted EPS of $9.30.Communications weakness, negative Q2 free cash flow and higher debt temper MasTec's growth story. MasTec, Inc. (MTZ - Free Report) has delivered a strong run in 2026, with shares gaining 25.9% year to date. The stock has outperformed the Zacks Building Products - Heavy Construction industry’s 21.8% rise, the Zacks Construction sector’s 11.9% gain and the S&P 500 Index’s 13.1% advance.

MTZ Price Performance (YTD)

Image Source: Zacks Investment Research

The rally has been supported by improving earnings, record backlog and strong infrastructure spending across power, clean energy, pipelines and mission-critical projects. However, with the stock already reflecting part of this growth and Communications facing near-term weakness, investors need to assess whether the current level still offers enough upside.

Record Q2 Results Strengthen MTZ’s Growth CaseMasTec’s second-quarter performance provides solid support for the stock’s YTD advance. Revenues increased 23.4% year over year to a quarterly record of $4.37 billion. Adjusted EBITDA climbed 39.8% to $384 million, while adjusted EBITDA margin expanded 100 basis points (bps) to 8.8%. Adjusted earnings per share (EPS) rose 48.8% to a second-quarter record of $2.22.

Importantly, growth was broad outside Communications. Clean Energy and Infrastructure revenues surged 43.4%, with EBITDA rising 53.9%. Power Delivery revenues advanced 19.2% and EBITDA increased 23.7%. Pipeline Infrastructure was another standout, with revenues rising 19.1% and EBITDA jumping 91%, lifting its EBITDA margin 690 bps to 18.4%.

This mix shows that MasTec is becoming less dependent on any single infrastructure market, which could make earnings growth more consistent.

MTZ’s Record Backlog Provides Strong Revenue VisibilityMasTec ended the quarter with a record 18-month backlog of $21.4 billion, up 30% year over year and about 5% sequentially. The company also reported a roughly 1.2X book-to-bill ratio.

Clean Energy and Infrastructure has been a major contributor. The earnings presentation shows that its backlog reached $7.8 billion, rising about $2.9 billion year over year. Power Delivery backlog also reached a record level of about $6.3 billion.

This backlog matters because the demand drivers extend beyond 2026. MasTec is seeing spending tied to grid modernization, power generation, data centers, industrial infrastructure and natural gas infrastructure. Management also noted that the pace of project bids, negotiations and longer-term development remains very strong, with large project pursuits increasing during the second quarter.

AI, Power Demand and Superior Expand MasTec’s OpportunityThe acquisition of The Superior Group adds another growth engine. Superior brings roughly 3,000 employees and strong capabilities in electrical construction for data centers, while also serving healthcare, entertainment and industrial markets. The combination should allow MasTec to offer customers a broader range of integrated infrastructure services.

The deal fits directly into MasTec’s mission-critical strategy. AI and data-center expansion require power generation, grid connections, substations, electrical infrastructure, pipelines, fiber and other construction services — areas where MasTec has meaningful capabilities.

Power Delivery is already benefiting from grid modernization, electrification, system reliability spending and rising electricity needs from data centers. Meanwhile, Clean Energy and Infrastructure is seeing strong renewable demand, greater power-generation opportunities and progress on a turnkey data-center project.

Management believes its mission-critical exposure is still at an early stage, suggesting that this growth theme could extend well beyond the current year.

Raised 2026 Outlook & Estimate Revisions Support MomentumStrong execution and the addition of Superior prompted MasTec to increase its 2026 outlook. Management now expects revenues of $18.2 billion, adjusted EBITDA of $1.6 billion and adjusted EPS of $9.30, representing growth of 27%, 39% and 42%, respectively. The earnings presentation also calls for third-quarter revenues of $4.93 billion, adjusted EBITDA of $482 million and adjusted EPS of $2.98.

The estimate trend is equally encouraging. Over the past 30 days, the Zacks Consensus Estimate for 2026 EPS has increased to $9.31 from $9.05, implying 42.1% growth. The 2027 estimate has risen to $12.67 from $12.43, suggesting another 36.1% increase. Revenues are expected to grow 27% in 2026 and 17.2% in 2027.

MTZ EPS Estimate Revision Trend

Image Source: Zacks Investment Research

MTZ EPS Estimate Revision TrendCommunications Weakness Remains a Key Concern The outlook is not strong across every business. Communications is the clearest weak spot. Second-quarter Communications revenues increased 6.2% to $888.9 million, but EBITDA declined 11.6% to $73.1 million and margin contracted 170 basis points to 8.2%.

MasTec has reduced its Communications expectations for the remainder of 2026. Management expects lower wireless revenues during the second half as the industry waits for equipment needed for the next spectrum deployment cycle. Wireline is also being affected by RDOF work rolling off and delayed starts for replacement projects.

Execution issues on certain projects and higher indirect fuel and equipment expenses have added pressure. MasTec now expects full-year Communications revenues of about $3.25 billion and EBITDA margins in the high single digits, roughly 100 basis points below the prior year.

Cash Flow and Acquisition-Related Leverage Need WatchingMasTec’s rapid expansion also comes with balance-sheet considerations. Long-term debt, including finance leases, stood at $2.57 billion as of June 30, 2026, up from $2.18 billion at 2025-end. Cash and cash equivalents declined to $315.6 million from $396 million over the same period. First-half operating cash flow improved to $120.3 million from $84 million a year earlier.
Yet second-quarter free cash flow remained negative at $59 million compared with negative $45 million a year earlier.

There is reason for improvement: MasTec expects 2026 operating cash flow to exceed $1 billion and year-end leverage to remain below 2X. Still, execution on cash conversion and leverage following the Superior acquisition warrants attention.

Valuation Suggests Investors Should Not Ignore the PriceMasTec currently trades at 24X forward 12-month earnings, above the industry’s 21.62X. However, the valuation is almost in line with MTZ’s five-year median of 23.91X.

MTZ Valuation (P/E F12M)

Image Source: Zacks Investment Research

That makes the stock neither clearly cheap nor excessively expensive relative to its own history. The premium to the industry appears partly justified by strong EPS growth, record backlog and rising exposure to AI-related infrastructure. Still, after a 25.9% YTD gain, further multiple expansion may be harder to achieve unless MasTec continues raising earnings expectations.

Analyst sentiment remains very positive. All 20 recommendations contributing to MTZ’s Average Brokerage Recommendation rate the stock a Strong Buy, resulting in an ABR of 1.00. The average Wall Street price target of $444 implies substantial upside from the latest closing price.

Image Source: Zacks Investment Research

MasTec Versus Key Infrastructure PeersMasTec operates across several infrastructure markets, making Quanta Services, Inc. (PWR - Free Report) , EMCOR Group, Inc. (EME - Free Report) and MYR Group Inc. (MYRG - Free Report) relevant peers. Quanta Services shares have surged 59.2% YTD, MYR Group has gained 54.4% and EMCOR has rallied 33.5%, meaning all three have outpaced MasTec’s 25.9% gain.

Valuation provides a more mixed picture. Quanta Services trades at 38.06X forward 12-month earnings, well above MasTec’s 24X multiple. MYR Group trades at 26.43X, while EMCOR trades at 24.11X.

Thus, MasTec is substantially cheaper than Quanta Services and modestly cheaper than MYR Group, while trading almost in line with EMCOR. Quanta Services benefits from strong electric-power and grid investment, EMCOR has major exposure to data centers and high-tech facilities, and MYR Group is closely tied to transmission and distribution spending. MasTec’s broader exposure to clean energy, pipelines, communications and mission-critical construction offers diversification against these peers.

Is MasTec’s Rally Still Worth Chasing?MasTec entered the second half of 2026 with several strong cards — record backlog, improving margins, rising earnings estimates, strong power and clean-energy markets and greater exposure to data-center and mission-critical investment through Superior. These factors provide a solid base for growth into 2027.

However, the 25.9% YTD rally has already rewarded investors for part of that improvement. Communications weakness, negative second-quarter free cash flow, higher debt following expansion and a valuation premium to the industry argue against aggressively chasing the stock at current levels.

With MasTec carrying a Zacks Rank #3 (Hold), existing investors may have enough fundamental support to stay invested, while new investors could consider waiting for a better entry point. The long-term infrastructure story remains attractive, but the current risk-reward profile supports patience rather than chasing the rally. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Red Rock Resorts expects Green Valley Ranch's full East Tower hotel product back online in September.Over 21,000 room nights were unavailable in Q2, contributing to about $7 million of temporary disruption.RRR still faces higher labor, utility and construction costs, with Durango disruption starting in Q3. Red Rock Resorts, Inc. (RRR - Free Report) enters the second half of 2026 with a near-term operating catalyst at Green Valley Ranch. More than 21,000 room nights were unavailable during the second quarter as hotel renovation work reduced capacity and affected related gaming and food-and-beverage activity.

The full East Tower hotel product is expected back online in September, with management pointing to late September for the return of the full hotel offering. Restored capacity could help RRR test whether underlying hotel demand can translate into better operating performance heading into the fourth quarter.

RRR's Green Valley Rooms Return in StagesGreen Valley Ranch's West Tower and convention space have already reopened. The East Tower is expected to return in September, completing the renovation of the property's guest rooms and suites.

The broader redevelopment is not finished. A roughly $56 million next phase includes a casino-floor refresh, food-and-beverage enhancements and upgraded entertainment amenities, with construction expected to extend into 2027.

Red Rock Resorts' Q2 Disruption Shows the Earnings CostGreen Valley Ranch experienced about $7 million of temporary disruption in the second quarter, better than the prior $9 million expectation. Management linked the impact mainly to unavailable rooms and the associated loss of gaming and food-and-beverage activity.

Las Vegas adjusted EBITDA fell 5% year over year to $227.5 million, while the segment's adjusted EBITDA margin declined to 45.2% from 46.7%. Consolidated adjusted EBITDA margin also fell to 40.8% from 43.6%, showing the broader profitability pressure during the quarter.

RRR Could Regain Hotel and Gaming CapacityExcluding Green Valley Ranch's room disruption, same-store hotel performance was favorable, with management citing positive occupancy and average daily rate trends. Food and beverage also benefited from higher guest volumes and higher check averages.

Restoring the inventory should improve Green Valley Ranch's ability to capture hotel, gaming and dining demand. The property's renovated high-limit gaming areas are already in service.

Boyd Gaming Corporation (BYD - Free Report) said its Las Vegas Locals results were affected by destination softness at the Orleans and construction disruption at Suncoast in the second quarter. Caesars Entertainment, Inc. (CZR - Free Report) reported Las Vegas net revenues of $1.017 billion, down 3.5% year over year. Those updates provide current peer context for RRR's reopening.

Red Rock Resorts Still Faces Utility and Project CostsThe reopening alone does not remove near-term cost pressure. Labor costs were up about 3% year over year, and management expects electric utility expense to remain a drag through the rest of 2026.

Seasonality adds another constraint. Management said Las Vegas operations are typically down about 10% sequentially from the second quarter to the third, while construction continues at Green Valley Ranch, Sunset Station and Durango. Durango is also expected to absorb about $2.5 million of quarterly disruption beginning in the third quarter.

RRR's Cautious Signals Frame the ReopeningThe September room return gives RRR a concrete operating milestone, but margin recovery can remain uneven while construction and utility costs persist. Green Valley Ranch is the first major return-on-investment project expected to begin contributing in the fourth quarter, making that period the next scheduled step in the property's earnings ramp.

RRR currently carries a Zacks Rank #3 (Hold), with a Value Score of C, Growth Score of C, Momentum Score of F and VGM Score of D. The Zacks framework places greater emphasis on A and B Style Scores, especially alongside #1 or #2 ranks. RRR's current mix does not provide that combination, supporting a cautious view while investors wait for evidence that restored capacity is translating into stronger earnings and margins. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Red Rock Resorts' resilient gaming trends and Durango expansion support its growth outlook.Durango North is slated for 2027, adding casino space, slots, dining, entertainment and parking.RRR's EBITDA margin fell as project disruption and higher labor and utility costs pressured profits. Shares of Red Rock Resorts, Inc. (RRR - Free Report) have gained 20.3% in the past three months, putting the focus on whether operating fundamentals can support the move. Stable gaming activity and an expanding development pipeline help the case, but construction and higher costs are pressuring profitability.

Execution now matters more. Durango and other projects can add earnings capacity over time, yet leverage remains elevated and estimate momentum has weakened.

RRR's Core Gaming Trends Stay ResilientCore slot and table trends were stable in the second quarter. Carded spend per visit and net theoretical win increased across local, regional and national customers. July gaming trends also remained favorable.

Peer results show a mixed backdrop. Boyd Gaming Corporation (BYD - Free Report) said its Las Vegas Locals segment faced destination softness and construction disruption, though the rest of the segment grew revenues. Caesars Entertainment, Inc. (CZR - Free Report) reported Las Vegas net revenues down 3.5% year over year, while regional net revenues rose 9.4%.

Red Rock Resorts' Durango Expansion Extends the RunwayDurango remains a key long-term growth lever. The December 2025 expansion added more than 25,000 square feet of casino space, a high-limit slot area and nearly 2,000 covered parking spaces. Management has cited favorable results from the premium gaming area.

Durango North remains scheduled for the second half of 2027. The project is expected to add more than 275,000 square feet, nearly 400 slots and new dining, entertainment, bowling and theater amenities. Management cited residential growth in Southwest Las Vegas as support for the project.

RRR's Margin Pressure Tests the RallyNear-term profitability is the main counterweight. Consolidated adjusted EBITDA fell 9.3% year over year to $208 million in the second quarter, while margin contracted 281 basis points to 40.8%. Las Vegas adjusted EBITDA margin fell 143 basis points to 45.2%.

Green Valley Ranch absorbed about $7 million of disruption in the quarter. Durango is expected to face about $2.5 million of quarterly disruption beginning in the third quarter through completion in the second half of 2027. Labor costs rose about 3%, while electric utility expense is expected to remain a drag through the rest of 2026.

Red Rock Resorts' Debt Raises the Bar for ExecutionRRR ended the second quarter with $136.5 million of cash, $3.6 billion of total debt and $3.5 billion of net debt. Net debt to EBITDA increased to 4.21X from 4.07X at March 31, reducing balance-sheet flexibility during an investment-heavy period.

Full-year 2026 capital spending is still expected at $375 million to $425 million, including $275 million to $300 million of investment capital. Second-quarter operating free cash flow of $100 million supports reinvestment, but elevated leverage leaves less room to absorb execution or cost variability.

RRR's Mixed Scores Temper Momentum EnthusiasmBottom line, RRR's 20.3% three-month gain is supported by resilient gaming trends and a multi-year development pipeline, but margin pressure, construction disruption and leverage keep the fundamental picture balanced. Price strength alone does not remove the execution risk.

The stock carries a Zacks Rank #3 (Hold), with a Value Score of C, Growth Score of C, Momentum Score of F and VGM Score of D. The #3 Rank does not signal the stronger short-term setup associated with #1 or #2 stocks, while the weaker Style Scores temper the momentum signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The current fiscal-year EPS estimate has declined 1.9% in the past four weeks and 10.7% in the past 12 weeks. The recent stock gain is therefore not yet matched by improving estimate momentum.

New USD $605 million Brookfield-led financing accelerates the development of Gigascale AI campuses across the continent.

, /PRNewswire/ -- (version française) 5C Group, a developer, builder and operator of large-scale AI data center campuses, today announced the closing of USD $605 million in new debt financing led by Brookfield Asset Management. This follows the USD $835 million in equity and debt capital 5C raised in 2025 as well as additional capital that 5C raised prior to 2025. Combined, this capital is fueling 5C's growth and expanding its AI infrastructure platform across North America.

5C delivers AI factories: large-scale, high-performance campuses where compute, power, cooling, networking, software, and operations are engineered together for performance, reliability, and scale. This integrated approach supports the increasingly dense and complex AI workloads while adapting to advances in GPU architecture, liquid cooling, rack-scale systems, and evolving AI deployment models.

The new capital will allow 5C to accelerate development across its portfolio of priority sites, fund the acquisition and construction of its Memphis campus, as well as support the development and expansion of its Ohio and Phoenix campuses, as they reach key commercial and investment milestones.

"This financing reflects strong confidence in 5C's strategy and our ability to execute at scale," said Jonathan Ahdoot, Chief Executive Officer of 5C. "It strengthens our ability to build next-generation AI infrastructure while investing for the long term in communities."

"We are pleased to expand our partnership with 5C and support the continued growth of its AI infrastructure platform," said Hamish Kidd, Managing Partner, Investments – Infrastructure, Brookfield Asset Management. "5C combines strong execution capabilities with a long-term approach to developing critical digital infrastructure, and we believe its North American campuses are well positioned to support growing demand for advanced AI capacity."

About 5C
5C Group is one of North America's largest AI digital infrastructure providers. The company delivers purpose-built infrastructure for AI with a network of state-of-the-art data centers. With over 1.5 gigawatts of roadmap capacity and the ability to power hundreds of thousands of GPUs, 5C Group delivers secure, reliable, and sustainable data center and AI infrastructure solutions at scale for the largest AI users with the most demanding workloads. For more information, please visit www.5c.ai.

About Brookfield Asset Management
Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager, headquartered in New York, with over $1 trillion of assets under management across infrastructure, energy, private equity, real estate, and credit. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors. We draw on Brookfield's heritage as an owner and operator to invest for value and generate strong returns for our clients, across economic cycles.

SOURCE 5C Group

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Shares of Unusual Machines (NYSE:UMAC) have climbed 23.39% over the past week, and the stock is adding another 3.41% in Monday trading to change hands near $27. The move follows the company’s Q2 earnings report and comes alongside a broad bid across NDAA-compliant drone names. UMAC is now up 104.95% year-to-date.

Blowout Revenue and a Widening Domestic Drone Tailwind The most recent catalyst is the Q2 FY2026 report released on August 6, 2026. Revenue landed at $16.72 million versus the $9.19 million consensus, an 81.87% beat and growth of 687.3% year-over-year. GAAP EPS came in at -$0.16, missing expectations of $0.08, weighed by $5.70 million in non-cash stock compensation and a $3.88 million unrealized loss on short-term investments. The adjusted EBITDA loss narrowed to roughly $400,000, putting UMAC within striking distance of operational breakeven.

Balance sheet matters here. Cash sits at $229.60 million, headcount doubled to 240 employees, and gross margin held at 34.7%. CEO Allan Evans framed the setup bluntly: “The second quarter of 2026 has been incredible. Unusual Machines is firmly into our next phase of growth, and we are doing it without burning cash. The demand signals continue to be positive.” Management is guiding Q3 revenue to pause sequentially as capacity investments come online, then ramp sharply in Q4 tied to the Department of War’s Drone Dominance program, with positive operating cash flow targeted by end of Q1 2027.

The policy backdrop is a major tailwind. The FY2027 defense request includes $53.6 billion for Drone Dominance, with $39.2 billion earmarked for a multi-year autonomous-systems procurement and domestic production build. That is the demand pipeline UMAC and its peers are competing to feed.

Peers Are Moving in Lockstep Drone stocks are up across the board today.

Red Cat Holdings (NASDAQ:RCAT) reported the same day as UMAC, with revenue up more than fivefold year-over-year even as EPS missed. Kratos Defense (NASDAQ:KTOS) beat on both lines August 4 and raised full-year revenue guidance to $1.75 billion to $1.81 billion, with a bid pipeline of $15.0 billion. AeroVironment (NASDAQ:AVAV | AVAV Price Prediction) is riding record bookings from its Switchblade and BlueHalo lines, and Ondas Holdings (NASDAQ:ONDS) raised its FY26 revenue target to at least $390 million on a backlog that jumped to $457 million.

Another major catalyst to the group is Boeing selling its autonomous flight subsidiaries to Archer Aviation. The deal sees Boeing receive a 16.5% stake in Archer, which provides more validation to aerospace startups. However, another facet is a well-financed competitor selling off businesses that could compete with startups in the space.

Here is how the group looks against UMAC over the past week:

Ticker Today Past Week Market Cap UMAC (Unusual Machines) +3.41% +23.39% $1.35B RCAT (Red Cat) +6.84% +22.31% $1.49B KTOS (Kratos) +1.27% +30.41% $11.63B AVAV (AeroVironment) +0.81% +25.01% $9.53B ONDS (Ondas) +1.65% +21.63% $5.28B Every name in the basket has posted double-digit weekly gains. That points to a factor move: domestic drone supply chain, NDAA compliance, and Drone Dominance procurement. UMAC and RCAT are leading intraday, while KTOS carries the largest weekly gain after its guidance raise.

Contact [email protected] for any questions or corrections.

Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) CEO Mark Zuckerberg outlined a vision for artificial intelligence centered on making so-called superintelligence broadly available to individuals, arguing that the technology should expand human capabilities rather than primarily replace workers.

In a 6,500-word essay titled “The Future is for Everyone: The Path to a Positive AI Future,” published on Monday, Zuckerberg said advanced AI could create opportunities in entrepreneurship, scientific research, education and personal productivity.

“We propose a philosophy based on individual empowerment as the source of prosperity, invention as the primary purpose of superintelligence, and balance of power as the foundation of safety,” Zuckerberg wrote.

Zuckerberg argued that concentrating advanced AI among a small number of companies, governments or individuals could create risks by placing too much economic and political power in limited hands. Instead, he said Meta wants to distribute AI capabilities widely and give individuals greater control over how the technology is used.

A central part of his argument is that AI’s biggest contribution should be invention rather than automation. He said future systems could help people discover medicines, develop businesses, create products and conduct scientific research, while enabling individuals to pursue ideas that previously required larger teams or significant capital.

“I predict that this will not only lead to much greater economic growth, but also more employment over time rather than less,” Zuckerberg wrote.

Zuckerberg also described a future in which people have personal AI agents that understand their goals and interests and assist with areas such as health, careers, finances and hobbies. He said AI could also provide personalized tutoring, creative tools and support for scientific research.

Meta plans to offer free AI tools accessible to billions of people, while users seeking additional computing capacity could pay for greater access, Zuckerberg wrote.

He also rejected the idea that the development of increasingly capable AI should require concentrating power among a small group of institutions.

“The defining questions of our age are who will have access to superintelligence and what will we direct it towards,” Zuckerberg wrote. “Will it be centralized and restricted to a few institutions, or will it be a tool that empowers everyone?”

Zuckerberg acknowledged that superintelligence will bring significant challenges, but argued that broad access could help distribute its benefits while limiting the risks associated with concentrated control.

“Superintelligence holds the promise of giving everyone that power, and building a positive future for everyone,” he wrote.

Shares of Meta traded up 1.3% at about $600 on Monday, down about 9% so far this year.

Instagram, TikTok, Snapchat, YouTube, Facebook, Twitch and Reddit applications are displayed on a mobile phone ahead of new law banning social media for users under 16 in Australia, in this... Purchase Licensing Rights, opens new tab Read more

SummaryCompanies9th Circuit says Section 230 offers liability defense, not immunity, so appeal is too soonAppeals court also rejects Meta request to delay trial brought by 29 state attorneys generalFederal litigation covers more than ​3,000 suitsAug 10 (Reuters) - A U.S. appeals court on Monday allowed thousands of lawsuits to move forward against Meta Platforms (META.O), opens new tab, Alphabet's (GOOGL.O), opens new tab ‌Google, ByteDance's TikTok, and other social media companies over claims they designed their products to be addictive to young users.

The San Francisco-based 9th U.S. Circuit Court of Appeals rejected the companies’ bid to reverse a lower court’s ruling forcing them to face more than 3,000 lawsuits over the claims filed in federal court, concluding that the appeal came too early in ​the litigation.

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The defendants, which also include Snap Inc's (SNAP.N), opens new tab Snapchat, had argued that Section 230 of the Communications Decency Act of 1996 -- which generally shields ​online companies from claims over content posted by their users - also bars lawsuits claiming they failed to warn the public about the addictive nature ⁠of their platforms.

Most appeals come after a case has concluded with a ruling or a verdict. Meta had argued that Section 230 provided it broad ​immunity and that it should be able to appeal the lower court's decision immediately. But the 9th Circuit said Section 230 provides a defense to liability, ​not immunity from lawsuits, so the appeal was premature.

The court also denied Meta's bid to postpone a trial beginning Wednesday in a lawsuit brought by 29 state attorneys general alleging that the company illegally collected and used children’s data, designed their social media platforms to keep young users hooked, and misled consumers about their safety. The company ​had argued that the trial couldn't go forward while the appeal had been outstanding.

A representative for Meta and a spokesperson for the lead attorneys in ​the appeal did not immediately respond to requests for comment.

THOUSANDS OF LAWSUITSFiled by states, municipalities, school districts and individuals, the lawsuits allege that social media companies intentionally addicted young ‌users, contributing ⁠to surging depression, anxiety and body-image issues and a broader mental health crisis among American youth in recent years.

Parents, school districts, states and other plaintiffs had argued that the trial court’s ruling was not final and therefore could not be appealed. But they also objected to the companies’ arguments about Section 230, saying it does not cover claims related to how they operate and design their products.

The cases, which have been centralized before U.S. District Judge Yvonne Gonzalez ​Rogers in Oakland, California, seek damages, ​penalties and restitution from the companies. ⁠The companies appealed Rogers’ orders in 2023 and 2024 that largely allowed the litigation to move forward.

The companies are facing hundreds of additional lawsuits over similar claims in state court, with approximately 3,300 of them in a consolidated proceeding ​in California state court.

In the first lawsuit to go to trial in the California litigation, and a closely watched ​test of how ⁠juries might respond to similar claims, a Los Angeles jury in March found Meta and Google negligent for designing social media platforms that harm young people. The jury awarded $6 million to a now‑20‑year‑old woman who says she became addicted to Instagram and YouTube as a child.

And, Meta lost both phases of a landmark lawsuit brought by ⁠New Mexico in ​state court. A jury in March ordered it to pay $375 million after finding it had misled ​consumers about the safety of its platforms. On Thursday, a judge found Meta had created a public nuisance and ordered it to pay an additional $567 million and implement youth-safety measures.

Both Meta and Google, which ​have denied the claims in those cases, said they would appeal.

Reporting by Diana Novak Jones in Chicago, Editing by Alexia Garamfalvi, Matthew Lewis and David Bario

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Diana reports on product liability, litigation, mass torts and the plaintiffs' bar. She previously worked at Law360 and the Chicago Sun-Times.

Bernstein is sticking with its Microsoft (NASDAQ:MSFT) rating while lifting its price target, arguing the company is taking a measured approach to capacity buildout despite strong demand signals.

The firm reiterated Microsoft at Outperform and raised its price target to $660 per share from $647, saying Microsoft is taking a "surprisingly measured approach" to building capacity given demand signals and its ability to pivot facilities to meet demand.

Bernstein wrote: "Simply stated Microsoft is not building too fast, but rather taking a surprisingly measured approach given the demand signals they are receiving and their ability to easily pivot facilities to meet demand,” per CNBC.

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AI Capex Surges to New HeightsThis disciplined approach comes amid a broader surge in AI-related capital expenditures. U.S. hyperscalers are projected to spend about $916 billion on AI capex over the next year, with expectations to reach nearly $1.2 trillion the following year. This spending spree is set to account for approximately 3.1% of U.S. GDP by 2027, tripling the investment levels seen during the 1990s telecom boom.

Concerns Over AI Investment StrategyHowever, not everyone views this spending positively. In a Friday note, Aswath Damodaran expressed concerns that Microsoft, along with Amazon, Meta, and Google, is “collectively overinvesting” in AI.

Damodaran, known as the “Dean of Valuation,” argues that these tech giants are betting on AI without a clear business model, likening their approach more to gambling than investing.

Technical Analysis

Microsoft is on a 3-day winning streak, adding about $67.42 billion in market cap over approximately three sessions. The stock is significantly outperforming the S&P 500 with a 1-month gain of 32.19% compared to the SPY’s 2.46% rise. Additionally, Microsoft’s RSI(14) stands at 79.67, indicating overbought conditions.

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Nvidia logo is seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

Aug 10 (Reuters) - A group of ​financial firms, including Apollo Global (APO.N), opens new tab and Blackstone (BX.N), opens new tab, ‌is working with Nvidia to put together a $500 billion funding package for AI infrastructure development, a person familiar ​with the matter told Reuters on Monday.

Nvidia's (NVDA.O), opens new tab ​shares fell over 3% in afternoon trading.

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The ⁠tie-up highlights Nvidia's efforts to raise capital for ​the chips, power generation and data centers underpinning ​the AI boom.

Big Tech companies have signaled that spending on AI would not slow down, with combined outlays ​set to surpass $730 billion this year.

The group, which ​also includes BlackRock's (BLK.N), opens new tab Global Infrastructure Partners, Brookfield Asset Management (BAM.N), opens new tab, Goldman ‌Sachs (GS.N), opens new tab ⁠and KKR (KKR.N), opens new tab, is in talks to partner with Nvidia on the AI build-out, according to the Financial Times, which reported the development first.

BlackRock ​and KKR declined ​to comment ⁠when contacted by Reuters, while Nvidia and the other companies did ​not immediately respond to requests.

Nvidia said in June it ​would ⁠raise $25 billion through a U.S. bond issuance, as it taps the debt market to increase liquidity ⁠for ​the first time since 2021.

Reporting ​by Isla Binnie in New York and Juby Babu in Mexico ​City; Editing by Jonathan Ananda and Shinjini Ganguli

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Isla Binnie reports on how company directors and executives manage stakeholder and shareholder interests, with a focus on compensation, corporate crises, dealmaking and succession. She also covers how politics, regulation, environmental issues and the broader economy affect boardroom discussions. Isla previously covered business, politics and general news in Spain and Italy. She trained with Reuters in London and covered emerging markets debt for the International Financing Review (IFR).

Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) is set to report second-quarter earnings after the market closes on August 26 and Bank of America thinks the chipmaker is about to do what it usually does: beat expectations and raise its outlook, only this time with an extra catalyst behind it.

In a note maintaining its Buy rating and $350 price objective on the stock, BofA analysts said they expect Nvidia to post revenue of $94 billion to $95 billion, a $3 billion to $4 billion beat above the company's own $91 billion guidance.

More notable, though, is what they expect for guidance going forward: a raise to $107 billion to $108 billion, well above the roughly $104 billion that Wall Street analysts are currently modeling.

The reason for that optimism comes down to timing. Nvidia's next-generation Vera Rubin platform is starting to ship, along with new Vera CPU ramps, and BofA points to strong cloud capital spending trends as further support. The analysts also flagged that spot prices for renting GPU capacity have hit all-time highs, which they say could ease lingering concerns about return on investment and speed up how quickly customers move to the new generation of chips.

Rising memory prices are a worry across chipmakers this year, but BofA doesn't see it hitting Nvidia hard. The firm expects gross margin to settle around 73% to 74% long-term, down only modestly from about 75% today.

On upcoming Vera Rubin racks, the margin hit from memory is just 60 basis points versus the current Blackwell Ultra generation. New "pod-level" systems could see a steeper 500-basis-point hit, but BofA expects those to stay a small part of the mix. Long-term supply deals, including Nvidia's ties to SK Hynix, should also help cushion the pressure.

Critics argue Nvidia's direct stakes in customers like OpenAI ($30 billion) and Anthropic ($10 billion) artificially inflate demand. BofA counters that the roughly $70 billion invested so far is just 15% of the $470 billion in free cash flow it expects Nvidia to generate in 2026 and 2027, leaving room to keep returning 50% of free cash flow to shareholders. A separate $250 billion OpenAI/SB Energy backstop isn't upfront money either, BofA notes, but a contingent guarantee that only triggers on default, with payments back-end loaded to 2028 or later.

Five things to watch beyond the headline numbers BofA laid out what it considers the real debates investors should be paying attention to this quarter, beyond just whether Nvidia beats and raises:

The Vera Rubin rollout - any updates on supply and whether Nvidia's forecast of more than $1 trillion in revenue from calendar years 2025 through 2027 changes. OpenAI's financing arrangement - specifically, more clarity on the vendor financing and backstop deal, and when Nvidia might be able to redirect that cash toward stock buybacks instead. Whether margins hold up as memory costs keep rising. Memory now makes up 40% to 50% of the cost to build Nvidia's systems, compared with 15% to 20% or so historically. How hyperscalers are growing compared to what BofA calls ACIE (its term for AI cloud infrastructure providers outside the traditional hyperscalers). The open-versus-closed AI model debate and what it means for the size of Nvidia's addressable market.

Disney+ logo is seen in this illustration taken August 5, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

Aug 10 (Reuters) - Disney+ (DIS.N), opens new tab and Hulu said on Monday they had struck a video podcasting ​deal with iHeartMedia (IHRT.O), opens new tab for six podcast titles, ‌starting with "Hey Jonas!," as they expand their libraries to draw more users in a competitive ​market.

The agreement extends Disney+ and Hulu's ​push into video podcasts, a format ⁠also being embraced by rivals including Netflix (NFLX.O), opens new tab ​and HBO Max.

Here are some details:

"Hey Jonas!," ​hosted by the Jonas Brothers, will premiere on Disney+ and Hulu on August 14, the companies ​said.

The deal will bring several celebrity-hosted rewatch ​and companion podcasts to the platforms, including "Pod Meets World" ‌on ⁠Disney+ and "Desperately Devoted," "Fake Doctors, Real Friends with Zach and Donald," "StraightioLab" and "Thanks Dad with Ego Nwodim" on Hulu in the coming ​months.

The podcasts ​will begin ⁠streaming on Disney+ and Hulu in phases over the coming ​months.

Disney and iHeartMedia did not disclose ​the ⁠financial terms of the deal.

Netflix and HBO Max have also moved into video podcasts, ⁠with ​Netflix striking deals with ​Spotify (SPOT.N), opens new tab and iHeartMedia for shows including "The Bill Simmons Podcast."

Reporting by ​Prathik Jayaprakash in Bengaluru; Editing by Tasim Zahid

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

McDonald's (MCD -0.89%) is a leader in the fast-food industry, and it's an iconic brand all over the world. The challenge, however, is that when a business reaches a massive size, it becomes much harder for it to grow quickly. And the company's recent results highlight that, as they were fairly modest.

Can McDonald's still be a top stock to buy right now, or are its best days behind it?

Image source: Getty Images.

Comparable sales were light in the company's most recent quarter Last week, McDonald's reported its latest quarterly results for the period ending June 30. The numbers weren't great. While its total sales rose by 5% year over year, its comparable store sales growth rate was much more modest, coming in at just 1.3%. And in the U.S. market, it was just 0.8%.

Comparable store sales look at how much revenue the company is generating from existing locations versus the same locations in the prior-year period. Thus, it's reflective of the organic growth the business is generating, and it excludes the boost it gets from opening new stores.

What's concerning is that in April, the company expanded its value offerings, including the launch of a new under $3 menu, and that hasn't shown to be a huge catalyst, at least not in its early stages, anyway. At a time when consumers are looking to save on anything and everything, it's a move that investors may have expected to be a catalyst for the fast-food business. But that hasn't proven to be the case at all.

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McDonald's stock can still be a good buy, but it may not be ideal for growth investors McDonald's has a highly profitable and scalable business. But generating meaningful, organic growth may prove to be a challenge in a highly competitive fast-food industry. Rising prices in recent years don't make things any easier, either.

The stock can still be a solid option for income investors as it yields 2.7%, which is a far higher rate than the S&P 500 average of only 1.1%. But for growth investors, there are many other, better growth stocks to buy than McDonald's. Last year, its annual revenue totaled $26.9 billion, which rose by less than 4% from the previous year. It may still generate modest growth in the long run, but growth investors may be underwhelmed with its performance. In the past five years, the stock has risen by just 16%, while the S&P 500 has increased by 75% in value.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool recommends the following options: long January 2028 $320 calls on McDonald's and short January 2028 $340 calls on McDonald's. The Motley Fool has a disclosure policy.

Key Takeaways Hertz posted a Q2 adjusted loss of 11 cents per share as revenues rose 9.7% to $2.40 billion. HTZ's revenues per day rose 9% & revenues per unit gained 8% despite operating with a 1% smaller fleet. Hertz expects Q3 adjusted EBITDA of $275M-$325M and positive EPS, with transaction days up about 1%. Hertz Global Holdings, Inc.(HTZ - Free Report) reported better-than-expected second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.

Quarterly adjusted loss was 11 cents per share, narrower than the Zacks Consensus Estimate of a loss of 23 cents. The result represented a positive surprise of 52.2% and improved from the adjusted loss of 29 cents per share reported in the year-ago quarter.

Revenues of $2.40 billion beat the consensus estimate of $2.28 billion by 4.9% and increased 9.7% year over year. Growth was driven by strong pricing execution, with revenues per day up 9% and revenues per unit rose 8%, while the company operated with a 1% smaller fleet.

The impressive results had a positive impact on the market, as the company’s shares have risen 12.4% since the earnings release on Aug. 6.

Image Source: Zacks Investment Research

Adjusted corporate EBITDA was $81 million, up $63 million from the prior-year quarter. Adjusted corporate EBITDA margin improved to 3.4% from 0.8% a year earlier. The results included an estimated $30 million EBITDA headwind from elevated vehicle recalls.

Direct vehicle and operating expenses increased 4.3% year over year to $1.45 billion. Net depreciation of revenue-earning vehicles and lease charges rose 17.3% to $487 million, while selling, general and administrative expenses increased 4.9% to $258 million. As a percentage of revenues, SG&A improved to 10.8% from 11.3%.

HTZ's Key Balance Sheet and Cash Flow FiguresHTZ exited the second quarter with total cash, cash equivalents and restricted cash and cash equivalents of $1.30 billion compared with $1.17 billion at the end of 2025. The company generated $381 million of net cash from operating activities and $162 million of adjusted free cash flow during the second quarter. Quarter-end liquidity was $984 million.

HTZ's 2026 GuidanceFor the third quarter of 2026, Hertz expects adjusted corporate EBITDA of $275 million to $325 million and positive earnings per share. Transaction days are projected to increase approximately 1% year over year, while net depreciation per unit is expected to range from $285-$295 per month.

For full-year 2026, the company expects adjusted corporate EBITDA of $225 million to $275 million, net depreciation per unit of approximately $300 per month and transaction days growth of approximately 2%. Hertz expects to end 2026 with liquidity between $1.0 billion and $1.4 billion and anticipates positive free cash flow in the second half of the year.

Currently, HTZ has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation CompaniesWestinghouse Air Brake Technologies (WAB - Free Report) , operating as Wabtec Corporation, reported encouraging second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.

Quarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion.

Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%.

United Airlines Holdings, Inc. (UAL - Free Report)  reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.

Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68 billion consensus mark. A 12.1% increase in total revenues per available seat mile or TRASM, and broad-based gains across premium, loyalty and cargo revenues, supported the top line despite sharply higher fuel costs.