Track market-moving stories before they get noisy

Coca-Cola (KO +0.92%) recently revealed impressive numbers for its FIFA World Cup campaign. The beverage giant activated its marketing campaign across 180+ markets, with its digital and social activations generating 60 billion digital impressions and over 9 billion social media views.

That push, which was supported by over 2,500 content creators, made Coca-Cola the number one brand by "share of voice" -- meaning it generated the most online chatter, social media engagement, and ad visibility of all the brands that participated in the FIFA World Cup. It also generated "record-setting" engagement with its Powerade brand. Over 80 million consumers engaged with its connected packaging (via QR codes or smart tags), enabling it to collect over 25 million first-party data records for future ad campaigns.

Image source: Coca-Cola.

Coca-Cola is one of the only companies that can pull off a marketing campaign of this scale. Let's see why that wide moat makes it a great dividend stock to buy in August.

Why is Coca-Cola such a resilient investment? Coca-Cola has raised its dividend annually for 64 consecutive years, putting it in the elite club of Dividend Kings that have maintained that streak for at least 50 years. It maintained that streak through five global recessions and dozens of regional military conflicts. It pays a forward dividend yield of 2.4%, and its low payout ratio of 65% leaves it plenty of room for future hikes.

Coca-Cola might seem like a wobbly investment amid declining soda consumption rates. But over the past few decades, it has expanded its portfolio to include more brands of bottled water, fruit juices, teas, sports drinks, energy drinks, coffee, and alcoholic beverages. It also updated its sodas with smaller serving sizes, healthier versions, and new flavors. That expansion and evolution -- which it's supporting with new marketing and engagement campaigns -- allows it to steadily grow its revenues and profits.

Today's Change

(

0.92

%) $

0.81

Current Price

$

89.08

Coca-Cola only produces the concentrates and syrups for its drinks, while its independent bottling partners manufacture and distribute the finished beverages. That asset-light model enables it to generate ample cash for dividends, buybacks, and big marketing campaigns.

Unlike PepsiCo (PEP +0.45%), Coca-Cola doesn't dabble in packaged foods -- which are exposed to a broader range of inflationary and competitive headwinds than its core beverages. That's why Coca-Cola's stock easily outperformed PepsiCo's over the past ten years.

Why is Coca-Cola's stock still worth buying? From 2025 to 2028, analysts expect Coca-Cola's revenue and EPS to grow at CAGRs of 3% and 7%, respectively. That growth should be driven by AI-driven improvements to its restocking system, stronger sales of its health-oriented and wellness drinks (Fairlife dairy products, BODYARMOR functional sports drinks, and Coca-Cola Zero), and its ongoing transition from traditional mass advertising to data-driven consumer engagement.

Coca-Cola already showcased those forward-thinking marketing strategies at the FIFA World Cup this year, and it plans to do it again during the 2028 Summer Olympics in Los Angeles. By collecting more data on its customers, it can deploy more personalized marketing campaigns, AI-driven promotions, and automated loyalty rewards through social and digital channels. That strategy should reinforce its brand loyalty while reducing customer acquisition costs.

Coca-Cola isn't an exciting investment, and it might not seem like a bargain at 25 times next year's earnings. But it's still a rock-solid long-term investment because it has a wide moat, plenty of irons in the fire, and enough cash to support its annual dividend hikes.

That's why Coca-Cola remains one of my top holdings (4.6% of my portfolio), and why I'd be comfortable buying more shares even as it hovers near its all-time high. So if you're looking for a solid blue chip dividend stock to buy and forget, Coca-Cola checks all the right boxes.

Analysts expect the e-commerce giant to report Q2 revenue of $196.02 billion, up from $167.70 billion in last year’s Q2, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in seven straight quarters and in nine of the last 10 quarters overall.

Analysts expect Amazon Q2 earnings per share of $1.82, up from $1.68 in last year’s Q2.

The Seattle-based company has beaten analyst estimates for earnings per share in nine of the last 10 quarters. Guidance calls for revenue to be between $194 billion and $199 billion. The company did not provide earnings per share guidance.

Amazon Analyst RatingsHere are some of the most recent analyst ratings on Amazon.com stock and their price targets:

UBS: Maintained Buy rating, lowered price target from $333 to $305 BMO Capital: Maintained Outperform rating, raised price target from $355 to $360 Mizuho: Maintained Outperform rating, lowered price target from $325 to $320 Wedbush: Maintained Outperform rating, with $293 price target Wells Fargo: Maintained Overweight rating, raised price target from $313 to $322 Amazon Q2: Key Items to WatchAmazon posted double-digit revenue growth of 17% year-over-year in the first quarter, with the main segments of North America (+12%), International (+19%) and Amazon Web Services (+28%) all seeing double-digit growth.

AWS has been a standout performer in recent quarters, also posting revenue growth of 24% in the fourth quarter. The company said AWS growth in the first quarter was the fastest growth in 15 quarters.

The cloud segment is getting closer to passing International revenue and becoming the second-largest revenue driver each quarter.

AWS will be a key focus area for investors and analysts.

Another key will be any commentary on AI spending and AI monetization as the big technology companies look to show that their large capex is paying off in areas like revenue and margins.

Prime Video Bets On Blockbusters And Live SportsThe company’s Prime Video segment saw "Project Hail Mary" as a box office hit in March and likely into Q2.

"Masters of the Universe" didn’t perform as hot in theaters, with $113.8 million in global box office.

The hit show "Off Campus" saw huge viewership in the month of May, as did the final season of "The Boys."

NBA and NBA Playoffs coverage by Prime Video in April could also help boost overall advertising revenue for the company with live sports content being a key driver for this area.

Amazon is one of four Magnificent Seven stocks reporting this week and is also a key component of the S&P 500, Nasdaq 100 and Dow Jones Industrial Average. Here is Amazon’s place in three ETFs that track those indexes:

Strong earnings and guidance, along with a positive reaction to capex by investors, could provide a boost for those ETFs and the overall market.

Price ActionAmazon stock is up 0.4% to $231.82 on Wednesday versus a 52-week trading range of $196.00 to $278.56. The stock price is up 2.4% year-to-date in 2026.

Photo: Shutterstock

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Microsoft Chief Financial Officer Amy Hood Bloomberg/Getty Images Microsoft's latest earnings were as much about reassurance as results.

In a memo to employees after the company reported quarterly earnings, CFO Amy Hood pointed to Azure's growth and Copilot's momentum as evidence that Microsoft's biggest AI bets are paying off, even as the company spends tens of billions of dollars to keep pace in the AI race.

Microsoft shares were up 2% on Wednesday in after-hours trading following the company's earnings release, reporting $90 billion in fourth-quarter revenue, above Wall Street expectations. Hood sends these emails to employees every quarter when Microsoft discloses its financials.

"We begin this new year with clear priorities, strong customer demand, and significant opportunity ahead," Hood wrote in the memo, recapping Microsoft's fourth quarter and fiscal year. "At the same time, capturing the opportunity in front of us will require us to continue evolving, raising our ambition, and finding new ways to deliver for our customers."

The emails mostly repeat what the company reports publicly — such as how revenue and profit are growing, or what is discussed on analyst earnings calls — but they provide some insight into what Microsoft executives deem most important, and what they want employees to know.

The latest memo touted "important progress in key areas" like the company's Azure cloud business and its Copilot AI inside its suite of Microsoft 365 applications.

As Business Insider recently reported, these two important businesses have faced pressure as the generative AI boom drives soaring demand for computing capacity and fuels rapid advances by competitors. Hood's emphasis on both businesses suggests Microsoft believes it is beginning to weather those headwinds.

Hood also highlighted Microsoft invested more than $41 billion in capital expenditures during the quarter to expand data center capacity and reiterated a message Microsoft executives have emphasized for more than a year: security remains a top priority.

Read the memo:"Team,

Thank you all for a strong finish to our fiscal year.

Our Q4 results exceeded the outlook for revenue and operating income that we shared with Wall Street and we showed important progress in key areas like Azure and M365 Copilot.

You can see our earnings announcement here. Microsoft Cloud revenue was $59.3 billion in Q4 and $214 billion for the full fiscal year, growing 27% across both time periods.

Commercial bookings grew 18%, excluding OpenAI, driven by strength across our core annuity business. Commercial remaining performance obligation, which is a measure of the business we already have under contract, increased to $678 billion, up over $50 billion sequentially.

Thank you for staying focused on security, quality, and reliability. The trust customers place in us to power their most important workloads is earned every day through the work you do.

A few other key points from the quarter:

We generated $19.6 billion in free cash flow, highlighting the strength of our business and the flexibility it creates.We invested over $41 billion in capex to support the demand we continue to see. A big thank you to our infrastructure teams for bringing new capacity online and to our engineering teams for creating efficiencies that enable us to do more with every gigawatt we deploy.Azure and other cloud services revenue growth accelerated to 43%. And for FY26, Azure surpassed $100 billion in revenue, up 41%.Microsoft 365 commercial cloud revenue increased 16% on an adjusted basis, ahead of expectations. Building on the Copilot momentum we saw in Q3, net paid seat adds more than doubled sequentially and are now over 30 million.Microsoft 365 consumer cloud revenue increased 24% with subscriber growth of 7%.Search advertising revenue ex-TAC increased 10%, and Bing and Edge both took share again this year.Windows OEM and Devices revenue decreased 7%, which is higher than overall PC market demand, as our OEM and channel partners continued to build inventory in response to higher component prices.XBOX content and services revenue decreased 10%, against a prior-year quarter that benefited from strong first-party content. During the quarter, Forza Horizon 6 saw strong player reception, reaching a record 6 million players in its first two days.And, LinkedIn revenue increased 12% primarily driven by Marketing Solutions.Before we turn the final page on FY26, I want to recognize what we accomplished together. It was a year of meaningful progress as we expanded capacity, improved our product quality, evolved business models, and changed how we operate thru new rhythms like cohorts and missions. We built momentum throughout the year and delivered our strongest execution and operating performance in the final quarter of the year. Most importantly, we remained grounded that our own success at Microsoft will not come unless we continue to create meaningful value for our customers and help them accelerate their own growth.

Thank you to teams across the company for the focus, discipline, and commitment you brought every day. From quality, security, and compliance to the countless decisions that improved how we serve customers, your work made an impact. The results we delivered in FY26 and the momentum we carry into FY27 are a direct reflection of your efforts.

We begin this new year with clear priorities, strong customer demand, and significant opportunity ahead. At the same time, capturing the opportunity in front of us will require us to continue evolving, raising our ambition, and finding new ways to deliver for our customers. I'm confident in what we can achieve together and excited for what comes next.

To hear more details about the quarter and our outlook for Q1, you can join live today at 2:30PM Pacific Time, listen on-demand, or read the transcript on the Investor Relations website.

With appreciation and gratitude,

Amy"

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Microsoft Artificial Intelligence Cloud Computing More Enterprise Software Exclusive

By PYMNTS  |  July 29, 2026

 | 

Procter & Gamble says economic pressures have consumers focused on smaller pack sizes and promotions.

The consumer packaged goods company released earnings Wednesday (July 29) showing sales up 3% for its most recent quarter and 1% for the year.

Speaking to analysts during an earnings call, Chief Financial Officer Andre Schulten pointed to the price of gas having a “specific impact” on consumer spending.

“I think it’s a general impact where you see the consumers that are well off, continue to behave as they’ve behaved before, [choosing] larger pack sizes to find value,” he said.

“The more pressured consumer that will be more impacted by gas prices or incremental $100 of gas cost per week, they continue to look for smaller pack sizes. They continue to be very affected by promotion patterns. None of that has changed.”

Despite these pressures, CEO Shailesh Jejurikar noted the company’s user base skews toward households earning over $100,000, describing current trends as a “discernment by consumers” rather than an “inability to buy.”

In the U.S., a notable disconnect appeared between “sell out” (actual consumer consumption) and “sell in” (retailer orders), with sell out or consumption up 2% and sell in down 1%. This was driven by retailer inventory reductions and the shift of major events like the earlier Amazon Prime Day, which impacted the timing of merchandising spending.

Meanwhile, eCommerce sales ticked up 6%, and now account for 20% of Procter & Gamble’s (P&G) total sales. This digital growth is especially pronounced in Greater China, where P&G is winning across both traditional eCommerce pure-plays and social commerce platforms.

“Coming out of COVID, it was a depressed market, it was a tough competitive environment, and the results were not great,” Jejurikar said. “We are now growing in China for the first time in 15 quarters, driven by fundamental changes we made similar to what we’re doing in the company.”

Other consumer-focused companies have reported similar pressures this month. For example, grocery chain Albertsons forecast slightly weaker sales amid more cautious lower-income consumer spending.

The company lowered its guidance for the fiscal year, projecting decreases of 1.5% to 0.5%, as shoppers switch to private label products.

“We’re seeing a shift to value packaging, trade-downs,” CEO Susan Morris said during an earnings call. “I think we’ve talked about this before in certain commodities, and again, it’s a very bifurcated situation. Lower-income customers are shifting more to cheaper proteins, as an example.”

Starbucks on Wednesday raised its full-year outlook after reporting its fourth straight quarter of same-store sales growth.

For fiscal 2026, Starbucks now expects adjusted earnings per share in a range of $2.55 to $2.65, up from its prior outlook of $2.25 to $2.45 per share.

It now also projects global same-store sales will rise nearly 6% and U.S. same-store sales will climb more than 6%; the company was previously forecasting global and U.S. same-store sales growth of at least 5%.

"This was the quarter our momentum became truly measurable," CEO Brian Niccol said in a video shared with the company's earnings press release.

The coffee giant also reported quarterly earnings and revenue that topped analysts' expectations.

Shares of the company jumped as much as 9% in extended trading.

Here's what the company reported for the quarter ended June 28 compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: 85 cents adjusted vs. 66 cents expected Revenue: $9.32 billion vs. $9.16 billion expectedThe coffee giant reported fiscal third-quarter net income attributable to Starbucks of $1.05 billion, or 91 cents per share, up from $558.3 million, or 49 cents per share, a year earlier.

The company's operating margins expanded to 13.6%, up from the year-ago period margins of 13.3%, thanks in part to tariff refunds. Starbucks did not say exactly how much it received in refunds.

"The refunds we received in Q3 largely offset related tariffs incurred in the first three quarters of fiscal 2026," CFO Cathy Smith said on the company's earnings conference call.

Excluding restructuring costs and other items, Starbucks earned 85 cents per share.

Net sales dropped 1% to $9.3 billion due to the company's sale of a controlling stake in its China business. In November, Starbucks announced it was forming a joint venture with Boyu Capital, which would take over operations in the coffee chain's second-largest market.

Although Starbucks' overall revenue fell, its sales at stores open at least 13 months climbed 7.9%, topping Wall Street estimates of 6%, according to StreetAccount.

The coffee chain reported increases in both transactions and average check, showing that customers are returning to its cafes and spending more on their orders.

Under Niccol's "Back to Starbucks" strategy, the company has focused on improving service and making cafes more welcoming in its home market. To do so, the chain has invested in labor and renovations to its coffee houses, earning some grumbling from investors. But the efforts seem to be paying off for Starbucks, which had seen its sales slump as it lost many of its loyal customers to competitors like Dutch Bros.

The company's North American same-store sales increased 8.1% in the quarter. Traffic to those restaurants jumped 4.5%. With a 3.5% increase in average ticket, customers were also spending more on their orders, paying to modify their lattes and adding food items alongside their drinks.

In addition to improving its operations, Starbucks has also retooled its menu, cutting unpopular items and launching new drinks. Niccol said the chain would test "spritzers" — sparkling versions of its Refreshers — in select markets.

Refreshers have grown to become a $2 billion drink platform for Starbucks and often drive customers to its cafes during the afternoon, helping fuel business outside of the morning coffee rush. In the fiscal third quarter, revenue from Refreshers climbed by a double-digit percentage, executives said.

Outside of Starbucks' home market, same-store sales rose 5.7%. With the formation of the China joint venture, roughly 90% of the company's international locations are now licensed, according to Niccol. The asset-light model is often more attractive to investors, who like the long-term lift to earnings the structure usually brings.

During the quarter, Starbucks opened 175 net new stores and surpassed 1,000 cafe "uplifts," reaching its fiscal 2026 goal ahead of schedule. Starbucks is now targeting at least 1,500 store renovations by the end of fiscal 2026 and accelerating its plans further in the next fiscal year.

The cafe makeovers cost roughly $150,000 on average and result in higher transactions, Niccol said on the company's earnings conference call. The changes vary based on location, but generally customers can expect more seating, warmer lighting and dark wood paneling.

Smith also said that the company is assessing its North American store footprint, which could result in it shuttering more stores. In fiscal 2025, the company's North America footprint shrank by 1% due to closures.

Correction: This story was updated to correct that Starbucks' North American same-store sales rose 8.1%. A previous version misstated the figure.

Qualcomm QCOM shares are inching lower in extended hours after the company reported fiscal Q3 results that reflected persistent semiconductor supply constraints.

The company based out of San Diego, CA earned $2.21 per share in its third financial quarter, less than $2.23 that analysts had called for, as net income tumbled 25% year-on-year to $2 billion.

However, QCOM’s sales soared to $9.95 billion in Q3 – handily beating the consensus set at $9.67 billion. Including after-hours decline, Qualcomm stock is down some 40% versus its June high.

A sharp escalation in semiconductor component costs was the primary culprit behind Qualcomm’s bottom-line miss.

In the press release, management pointed to much higher input expenses across wafer fabrication, packaging, assembly, and particularly memory components.

The supply crunch severely impacted Qualcomm's core handset segment, where chip sales dropped 20% annually to $5.1 billion, with CEO Cristiano Amon noting that elevated memory costs have altered consumer behavior in the core smartphone market.

Budget and mid-tier devices have faced severe affordability bottlenecks, and even premium Android shoppers are increasingly opting for lower-tier configurations or prior-year models, he added.

This structural shift in buying patterns, paired with elevated supply chain overhead, squeezed gross margins in Q3, triggering an after-hours sell-off in QCOM shares.

Investors bailed on Qualcomm shares also because of the disappointing current-quarter guidance.  

Management projected adjusted earnings per share between $2.05 and $2.25 – falling noticeably short of the $2.36 consensus estimate compiled by analysts polled by LSEG.

Expected sales of $9.7 billion to $10.5 billion surround the $10.02 billion Wall Street consensus, reflecting stable demand alongside ongoing cost inflation.

To offset these pressures, Amon announced comprehensive price increases across QCOM’s chip product line beginning September 1.

However, he categorized higher supply costs as a temporary disruption – emphasizing that raising prices and streamlining supply chain operations will restore margin expansion moving into the next fiscal year.

Should you buy the post-earnings dip in Qualcomm stock?Despite near-term supply chain friction, Qualcomm Inc’s strategic expansion beyond smartphones continues to gather momentum.

Non-handset divisions delivered standout results, led by the automotive business with $1.59 billion in sales, anchored by a fresh digital cockpit supply partnership with BMW as the chipmaker targets $10 billion in automotive revenue by 2029.

The Internet of Things segment grew 9% year-on-year to $1.83 billion, while the licensing division (QTL) generated $1.28 billion, topping StreetAccount estimates.

With non-smartphone business targeted to represent 60% of total revenue next year, the finalized acquisition of Modular and an upcoming AI software platform signal that QCOM stock remains aggressively positioned for data center and edge AI expansion.

That said, Wall Street currently rates Qualcomm Inc at Hold only.

Record 2Q consolidated revenue Second consecutive quarter of Las Vegas Strip Resorts year-over-year revenue growth All-time best Regional Operations same-store quarterly revenue , /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended June 30, 2026.

"MGM Resorts once again demonstrated the strength of our diversified portfolio with record second quarter consolidated revenue driven by a second consecutive quarter of year-over-year revenue growth for Las Vegas Strip Resorts, all-time best Regional Operations same-store quarterly revenue, and 20% year-over-year revenue growth at MGM Digital," said Bill Hornbuckle, President and CEO of MGM Resorts International. "Alongside this momentum in our existing operations, we continue to build for the future with investment in the largest integrated resort in the world, MGM Osaka, on track for 2030 opening, as well as returns on our digital businesses."

"Our disciplined and targeted capital allocation strategy fueled Segment Adjusted EBITDAR growth across our Las Vegas Strip Resorts, record setting results at several of our Regional Operations, and market share gains at MGM China," said Jonathan Halkyard, CFO of MGM Resorts International. "We will continue to allocate growth capital to drive significant returns on investment with meaningful opportunities at our Las Vegas luxury offerings."

Second Quarter 2026 Financial Highlights:

Consolidated Results

Consolidated revenue of $4.5 billion, an increase of 1% compared to the prior year quarter Net income attributable to MGM Resorts was $292 million in the current quarter compared to $49 million in the prior year quarter Consolidated Adjusted EBITDA of $610 million in the current quarter compared to $648 million in the prior year quarter Diluted earnings per share of $1.11 in the current quarter compared to $0.18 in the prior year quarter Adjusted diluted earnings per share ("Adjusted EPS") of $0.59 in the current quarter compared to $0.79 in the prior year quarter Las Vegas Strip Resorts

Revenue of $2.2 billion in the current quarter compared to $2.1 billion in the prior year quarter, an increase of 3% Segment Adjusted EBITDAR of $735 million in the current quarter compared to $710 million in the prior year quarter, an increase of 3% Regional Operations

Revenue of $924 million in the current quarter compared to $965 million in the prior year quarter, a decrease of 4% Same-store revenue (adjusted for dispositions) of $904 million in the current quarter compared to $879 million in the prior year quarter, an increase of 3% Segment Adjusted EBITDAR of $280 million in the current quarter compared to $309 million in the prior year quarter, a decrease of 9% Same-Store Segment Adjusted EBITDAR of $271 million in the current quarter, which was flat compared to the prior year quarter MGM China

Revenue of $1.1 billion in the current quarter, which was relatively flat compared to the prior year quarter Segment Adjusted EBITDAR of $257 million in the current quarter compared to $301 million in the prior year quarter, a decrease of 15% Intercompany branding license fee expense increased by $21 million over the prior year quarter MGM Digital (1)

Revenue of $196 million in the current quarter compared to $164 million in the prior year quarter, an increase of 20% Segment Adjusted EBITDAR loss of $31 million in the current quarter compared to a loss of $26 million in the prior year quarter (1)

MGM Digital consists of LeoVegas and other consolidated subsidiaries that offer interactive gaming; it does not include the BetMGM North America Venture.

Adjusted EPS

The following table reconciles diluted earnings per share ("EPS") to Adjusted EPS (approximate EPS impact shown, per share; positive adjustments represent charges to income):

Three Months Ended June 30,

2026

2025

Diluted earnings per share

$                                        1.11

$                                        0.18

Property transactions, net

(1.13)

(0.01)

Goodwill impairment

0.37

—

Non-operating items:

Loss (gain) related to debt and equity investments

0.03

(0.01)

Foreign currency transaction (gain) loss

(0.12)

0.72

Change in the fair value of foreign currency contracts

0.10

(0.12)

Income tax impact on net income adjustments(1)

0.23

0.03

Adjusted EPS

$                                        0.59

$                                        0.79

(1)

The income tax impact includes current and deferred income tax expense based upon the nature of the adjustment and the jurisdiction in which it occurs.

The current year quarter includes an income tax expense of $14 million resulting from an increase in the valuation allowance on foreign tax credits.

Las Vegas Strip Resorts

The following table shows key gaming statistics for Las Vegas Strip Resorts:

Three Months Ended June 30,

2026

2025

% Change

(Dollars in millions)

Casino revenue

$                               536

$                               457

17 %

Table games drop

$                            1,523

$                            1,554

(2) %

Table games win

$                               451

$                               355

27 %

Table games win %

29.6 %

22.9 %

Slot handle

$                            5,915

$                            5,886

— %

Slot win

$                               566

$                               549

3 %

Slot win %

9.6 %

9.3 %

The following table shows key hotel statistics for Las Vegas Strip Resorts:

Three Months Ended June 30,

2026

2025

% Change

Room revenue (in millions)

$                               717

$                               735

(2) %

Occupancy

93 %

93 %

Average daily rate (ADR)

$                               242

$                               252

(4) %

Revenue per available room (RevPAR)

$                               224

$                               235

(4) %

Regional Operations

The following table shows key gaming statistics for Regional Operations:

Three Months Ended June 30,

2026

2025

% Change

(Dollars in millions)

Casino revenue

$                               668

$                               710

(6) %

Table games drop

$                            1,020

$                               985

4 %

Table games win

$                               222

$                               213

4 %

Table games win %

21.8 %

21.6 %

Slot handle

$                            6,353

$                            6,868

(7) %

Slot win

$                               634

$                               694

(9) %

Slot win %

10.0 %

10.1 %

MGM China

The following table shows key gaming statistics for MGM China:

Three Months Ended June 30,

2026

2025

% Change

(Dollars in millions)

Casino revenue

$                               956

$                               977

(2) %

Main floor table games drop

$                            3,815

$                            4,085

(7) %

Main floor table games win

$                            1,038

$                            1,021

2 %

Main floor table games win %

27.2 %

25.0 %

Intercompany branding license fee expense for MGM China, which eliminates in consolidation, was $40 million in the current quarter and $19 million in the prior year quarter.

Unconsolidated Affiliates

The following table summarizes information related to the Company's share of operating income from unconsolidated affiliates:

Three Months Ended June 30,

2026

2025

(In thousands)

BetMGM North America Venture

$                                    23,097

$                                    21,770

Other

2,741

4,090

$                                    25,838

$                                    25,860

MGM Resorts Share Repurchases

During the second quarter of 2026, the Company repurchased approximately 4 million shares of its common stock for an aggregate amount of $164 million, pursuant to its repurchase plan. The remaining availability under the April 2025 stock repurchase plan was approximately $1.4 billion as of June 30, 2026. All shares repurchased under the Company's repurchase plan have been retired.

Conference Call Details 

MGM Resorts will host a conference call at 5:00 p.m. Eastern Time today, which will include a brief discussion of the results followed by a question and answer session. In addition, supplemental slides will be posted prior to the start of the call on MGM's Investor Relations website at http://investors.mgmresorts.com.

The call will be accessible via the internet through http://investors.mgmresorts.com/events-and-presentations/ or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 3854404.

A replay of the call will be available through August 5, 2026. The replay may be accessed by dialing 1-855-669-9658 or 1-412-317-0088. The replay access code is 6498752.

"Segment Adjusted EBITDAR" is our reportable segment GAAP measure, which we utilize as the primary profit measure for our reportable segments and underlying operating segments. Segment Adjusted EBITDAR is a measure defined as earnings before interest and other non-operating income (expense), income taxes, depreciation and amortization, preopening and start-up expenses, property transactions, net, triple net lease rent expense, income from unconsolidated affiliates, goodwill impairment, and also excludes corporate expense and stock compensation expense, which are not allocated to each operating segment. Triple net lease rent expense is the expense for rent to landlords under triple net operating leases for its domestic properties, the ground subleases of Beau Rivage and MGM National Harbor, and the land concessions at MGM China.

"Same-Store Segment Adjusted EBITDAR" is Segment Adjusted EBITDAR further adjusted to exclude the Segment Adjusted EBITDAR of disposed operating segments from the beginning of the reporting period through the date of disposition. Accordingly, for Regional Operations, we have excluded the Segment Adjusted EBITDAR of MGM Northfield Park for the periods prior to its disposition on April 21, 2026, as applicable.

Same-Store Segment Adjusted EBITDAR is a non-GAAP measure and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this measure is useful in providing meaningful period-to-period comparisons of the results of the Company's operations for operating segments that were consolidated for the full period presented to assist users of the financial statements in reviewing operating performance over time. Same-Store Segment Adjusted EBITDAR should not be viewed as a measure of overall operating performance, considered in isolation, or as an alternative to the Company's reportable segment GAAP measure or net income, or as an alternative to any other measure determined in accordance with generally accepted accounting principles, because this measure is not presented on a GAAP basis, and is provided for the limited purposes discussed herein. In addition, Same-Store Segment Adjusted EBITDAR may not be defined in the same manner by all companies and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies, and such differences may be material. A reconciliation of the Company's reportable segment Segment Adjusted EBITDAR GAAP measure to Same-Store Segment Adjusted EBITDAR is included in the financial schedules in this release.

"Consolidated Adjusted EBITDA" is earnings before interest and other non-operating income (expense), income taxes, depreciation and amortization, preopening and start-up expenses, property transactions, net, and goodwill impairment. Consolidated Adjusted EBITDA information is a non-GAAP measure that is presented solely as a supplemental disclosure to reported GAAP measures because it is among the measures used by management to evaluate our operating performance, and because we believe this measure is widely used by analysts, lenders, financial institutions, and investors as a measure of operating performance in the gaming industry and as a principal basis for the valuation of gaming companies. We believe that while items excluded from Consolidated Adjusted EBITDA may be recurring in nature and should not be disregarded in evaluation of our earnings performance, it is useful to exclude such items when analyzing current results and trends compared to other periods because these items can vary significantly depending on specific underlying transactions or events that may not be comparable between the periods being presented. Also, we believe excluded items may not relate specifically to current operating trends or be indicative of future results. For example, preopening and start-up expenses will be significantly different in periods when we are developing and constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within our properties, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period. However, Consolidated Adjusted EBITDA has limitations as an analytical tool, and should not be construed as an alternative or substitute to any measure determined in accordance with generally accepted accounting principles. For example, we have significant uses of cash flows, including capital expenditures, interest payments, income taxes, and debt principal repayments, which are not reflected in Consolidated Adjusted EBITDA. Accordingly, while we believe that Consolidated Adjusted EBITDA is a relevant measure of performance, Consolidated Adjusted EBITDA should not be construed as an alternative to or substitute for operating income or net income as an indicator of our performance, or as an alternative to or substitute for cash flows from operating activities as a measure of liquidity. In addition, other companies in the gaming and hospitality industries that report Consolidated Adjusted EBITDA may calculate Consolidated Adjusted EBITDA in a different manner and such differences may be material. A reconciliation of GAAP net income to Consolidated Adjusted EBITDA is included in the financial schedules in this release.

"Adjusted EPS" is diluted earnings or loss per share adjusted to exclude property transactions, net, net gain/loss related to equity investments for which we have elected the fair value option of ASC 825 and equity investments accounted for under ASC 321 for which there is a readily determinable fair value and net gain/loss related to our investments in debt securities, foreign currency transaction net gain/loss, and change in the fair value of foreign currency contracts.

Adjusted EPS is a non-GAAP measure and is presented solely as a supplemental disclosure to reported GAAP measures because we believe this measure is useful in providing period-to-period comparisons of the results of our continuing operations to assist investors in reviewing our operating performance over time. We believe that while certain items excluded from Adjusted EPS may be recurring in nature and should not be disregarded in evaluating our earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events. Also, we believe certain excluded items, and items further discussed with respect to Consolidated Adjusted EBITDA above, may not relate specifically to current operating trends or be indicative of future results. Adjusted EPS should not be construed as an alternative to GAAP earnings per share as an indicator of our performance. In addition, Adjusted EPS may not be defined in the same manner by all companies and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies. A reconciliation of Adjusted EPS to diluted earnings per share can be found under "Adjusted EPS" included in this release.

RevPAR is hotel revenue per available room.

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is an S&P 500® global gaming and entertainment company with national and international destinations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 30 unique hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. The Company's 50/50 venture, BetMGM, LLC, offers sports betting and online gaming in North America through market-leading brands, including BetMGM and partypoker, and the Company's subsidiary, LV Lion Holding Limited, offers sports betting and online gaming through market-leading brands in several jurisdictions throughout Europe and Brazil. The Company is currently pursuing targeted expansion in Asia through an integrated resort development in Japan. Through its Focused on What Matters philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information, please visit us at www.mgmresorts.com. Please also connect with us @MGMResortsIntl on X as well as Facebook and Instagram.

Cautionary Statement Concerning Forward-Looking Statements

Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to: the Company's expectations regarding its financial outlook (including expectations regarding group and convention bookings); the Company's expectations regarding its consideration of any acquisition proposal from People Incorporated and any actions taken by the Company in respect of any such proposal, including with respect to the negotiation and entry (or failure to enter) into an agreement involving the acquisition of the Company's equity interests or its business and its ability to consummate such a transaction on any timeline or at all; any benefits expected to be received from the Company's transactions and capital investments; the Company's ability to execute on its strategic plans, including the Company's development project in Japan; expectations regarding growth at MGM Digital, BetMGM North America Venture, or MGM China; expectations regarding events and experiences to be held at the Company's properties; and the Company's ability to return capital to shareholders (including the timing and amount of any share repurchases). These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include: the effects of economic conditions and market conditions in the markets in which the Company and its unconsolidated affiliates (including BetMGM North America Venture) operate and competition with online gaming and sports betting operators and destination travel locations throughout the United States and the world; the design, timing and costs of expansion and capital investment projects in Japan and Dubai; changes in applicable laws or regulations, particularly with respect to iGaming and online sports betting; risks relating to domestic and international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions; disruptions in the availability of the Company's information and other systems or those of third parties on which the Company rely, through cyber-attacks, or otherwise; and additional risks and uncertainties described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

MGM RESORTS CONTACTS: 

Investment Community
SARAH ROGERS
Senior Vice President of Corporate Finance & Treasurer
[email protected]

HOWARD WANG
Vice President of Investor Relations
[email protected] 

News Media
BRIAN AHERN
Executive Director of Communications
[email protected] 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2026

2025

2026

2025

Revenue

Casino

$

2,383,185

$

2,329,798

$

4,762,040

$

4,581,946

Rooms

849,143

860,401

1,716,997

1,723,809

Food and beverage

802,332

778,179

1,607,172

1,548,352

Entertainment, retail and other

416,333

436,492

819,502

827,845

4,450,993

4,404,870

8,905,711

8,681,952

Expenses

Casino

1,349,281

1,333,850

2,698,833

2,578,160

Rooms

276,390

272,066

561,666

552,915

Food and beverage

582,734

576,633

1,159,014

1,136,928

Entertainment, retail and other

263,346

262,880

516,766

497,309

General and administrative

1,263,260

1,213,691

2,546,092

2,378,589

Corporate expense

131,433

124,096

268,653

266,447

Preopening and start-up expenses 

112

849

1,089

934

Property transactions, net

(286,695)

125

(272,475)

15,593

Goodwill impairment

111,019

-

111,019

-

Depreciation and amortization

282,315

241,975

546,040

478,419

3,973,195

4,026,165

8,136,697

7,905,294

Income from unconsolidated affiliates

25,838

25,860

35,864

12,964

Operating income

503,636

404,565

804,878

789,622

Non-operating income (expense)

Interest expense, net of amounts capitalized

(102,129)

(105,584)

(202,818)

(212,853)

Non-operating items from unconsolidated affiliates

2,525

(4,055)

18

(3,793)

Other, net

9,488

(161,170)

13,691

(172,436)

(90,116)

(270,809)

(189,109)

(389,082)

Income before income taxes

413,520

133,756

615,769

400,540

Provision for income taxes

(90,731)

(15,662)

(118,188)

(55,715)

Net income

322,789

118,094

497,581

344,825

Less: Net income attributable to noncontrolling interests

(30,356)

(69,143)

(80,012)

(147,320)

Net income attributable to MGM Resorts International

$

292,433

$

48,951

$

417,569

$

197,505

Earnings per share

Basic

$

1.12

$

0.18

$

1.61

$

0.70

Diluted

$

1.11

$

0.18

$

1.59

$

0.70

Weighted average common share outstanding

Basic

254,018

273,329

255,193

280,199

Diluted

257,758

275,615

258,327

282,328

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

June 30,

December 31,

2026

2025

      ASSETS

Current assets

Cash and cash equivalents 

$

2,547,380

$

2,062,994

Accounts receivable, net

1,218,354

1,122,940

Inventories

123,371

124,535

Income tax receivable

1,612

220,154

Prepaid expenses and other

513,236

486,419

Assets held for sale

-

315,382

Total current assets

4,403,953

4,332,424

Property and equipment, net

6,182,784

6,305,614

Investments in and advances to unconsolidated affiliates                                                            

637,534

536,066

Goodwill 

4,768,737

4,901,960

Other intangible assets, net

1,258,099

1,356,676

Operating lease right-of-use assets, net

21,659,125

23,002,707

Deferred income taxes

117,192

89,792

Other long-term assets, net

820,902

848,547

$

39,848,326

$

41,373,786

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts and construction payable

$

422,884

$

421,502

Accrued interest on long-term debt

72,345

71,845

Other accrued liabilities

2,803,719

2,993,179

Liabilities related to assets held for sale

-

25,581

Total current liabilities

3,298,948

3,512,107

Deferred income taxes

2,600,028

2,617,067

Long-term debt, net

6,068,442

6,230,141

Operating lease liabilities

23,778,515

24,962,742

Other long-term obligations

726,335

775,411

Total liabilities

36,472,268

38,097,468

Redeemable noncontrolling interests

8,404

21,777

Stockholders' equity

Common stock, $0.01 par value: authorized 1,000,000,000 shares,

   issued and outstanding 251,586,206 and 258,323,143 shares 

2,516

2,583

Capital in excess of par value

-

-

Retained earnings

2,308,750

2,106,836

Accumulated other comprehensive income

202,509

320,498

Total MGM Resorts International stockholders' equity

2,513,775

2,429,917

Noncontrolling interests

853,879

824,624

Total stockholders' equity

3,367,654

3,254,541

$

39,848,326

$

41,373,786

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - REVENUE

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2026

2025

2026

2025

Las Vegas Strip Resorts

$

2,170,045

$

2,114,692

$

4,350,475

$

4,290,812

Regional Operations

924,098

964,612

1,842,008

1,865,031

MGM China

1,100,881

1,110,093

2,222,916

2,137,565

MGM Digital

196,308

163,861

379,049

291,919

Management and other operations                                                                                                         

59,661

51,612

111,263

96,625

$

4,450,993

$

4,404,870

$

8,905,711

$

8,681,952

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

SUPPLEMENTAL DATA - SEGMENT ADJUSTED EBITDAR AND CONSOLIDATED ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2026

2025

2026

2025

Las Vegas Strip Resorts

$

735,118

$

710,496

$

1,484,325

$

1,521,656

Regional Operations

280,216

308,656

539,653

587,698

MGM China

256,709

301,342

530,183

586,907

MGM Digital (1)

(30,884)

(25,698)

(56,486)

(60,091)

Unconsolidated affiliates - BetMGM and other (2)

25,838

25,860

35,864

12,964

Management and other operations

31,610

20,230

58,156

41,994

Stock compensation

(15,668)

(16,454)

(50,770)

(45,076)

Triple net lease rent expense

(552,188)

(564,416)

(1,116,815)

(1,128,891)

Corporate (3)

(120,364)

(112,502)

(233,559)

(232,593)

Consolidated Adjusted EBITDA

$

610,387

$

647,514

$

1,190,551

$

1,284,568

Additional Information:

Non-cash rent (4)

$

96,154

$

106,212

$

198,501

$

217,349

(1) MGM Digital consists of LeoVegas and other consolidated subsidiaries that offer interactive gaming.

(2) Represents the Company's share of operating income of unconsolidated affiliates.

(3) Includes amounts related to MGM China of $14 million and $28 million for current quarter and current year, respectively, and of $13 million and $23 million for prior year quarter
and prior year, respectively.

(4) Represents the excess of expense over cash paid related to triple net operating and ground leases.

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO MGM RESORTS INTERNATIONAL TO CONSOLIDATED ADJUSTED EBITDA

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2026

2025

2026

2025

Net income attributable to MGM Resorts International

$

292,433

$

48,951

$

417,569

$

197,505

  Plus: Net income attributable to noncontrolling interests                                                            

30,356

69,143

80,012

147,320

Net income

322,789

118,094

497,581

344,825

  Provision for income taxes

90,731

15,662

118,188

55,715

Income before income taxes

413,520

133,756

615,769

400,540

Non-operating (income) expense:

  Interest expense, net of amounts capitalized

102,129

105,584

202,818

212,853

  Other, net

(12,013)

165,225

(13,709)

176,229

90,116

270,809

189,109

389,082

Operating income

503,636

404,565

804,878

789,622

  Preopening and start-up expenses

112

849

1,089

934

  Property transactions, net

(286,695)

125

(272,475)

15,593

  Goodwill impairment

111,019

-

111,019

-

  Depreciation and amortization

282,315

241,975

546,040

478,419

Consolidated Adjusted EBITDA

$

610,387

$

647,514

$

1,190,551

$

1,284,568

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES

RECONCILIATIONS OF REGIONAL OPERATIONS REVENUE TO REGIONAL OPERATIONS SAME-STORE REVENUE

AND REGIONAL OPERATIONS SEGMENT ADJUSTED EBITDAR TO REGIONAL OPERATIONS SAME-STORE SEGMENT ADJUSTED EBITDAR

(In thousands)

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

June 30,

June 30,

2026

2025

2026

2025

Regional Operations revenue

$

924,098

$

964,612

$

1,842,008

$

1,865,031

Dispositions (1)

(20,518)

(85,464)

(104,468)

(164,005)

Regional Operations same-store revenue

$

903,580

$

879,148

$

1,737,540

$

1,701,026

Regional Operations Segment Adjusted EBITDAR

$

280,216

$

308,656

$

539,653

$

587,698

Dispositions (1)

(9,441)

(37,909)

(44,464)

(71,166)

Regional Operations Same-Store Segment Adjusted EBITDAR

$

270,775

$

270,747

$

495,189

$

516,532

(1) Reflects the revenue and Segment Adjusted EBITDAR of MGM Northfield Park, as applicable, for the period prior to its disposition.    

SOURCE MGM Resorts International

Disciplined cost management supports robust margins and over $725 million in free cash flow
Returned ~40% of free cash flow to shareholders totalling over $600 million year-to-date
Development pipeline on track and compelling Lobo-Marte update

TORONTO, July 29, 2026 (GLOBE NEWSWIRE) -- Kinross Gold Corporation (TSX: K, NYSE: KGC) (“Kinross” or the “Company”) today announced its results for the second quarter ended June 30, 2026.
This news release contains forward-looking information about expected future events and financial and operating performance of the Company. We refer to the risks and assumptions set out in our Cautionary Statement on Forward-Looking Information located on pages 22 and 23 of this release. All dollar amounts are expressed in U.S. dollars, unless otherwise noted.

2026 second-quarter highlights:

Production1 of 492,326 gold equivalent ounces (“Au eq. oz.”).Production cost of sales2 of $1,352 per Au eq. oz. sold and attributable production cost of sales1 of $1,336 per Au eq. oz. sold.Attributable all-in sustaining cost1 of $1,821 per Au eq. oz. sold.Operating cash flow3 of $1,145.9 million.Attributable free cash flow1 of $726.8 million.Margins4 increased by 42% to $3,131 per Au eq. oz. sold compared with Q2 2025.Reported earnings5 of $844.2 million, or $0.71 per share, with adjusted net earnings6 of $847.8 million, or $0.71 per share.On track to meet annual guidance: On an attributable basis1, Kinross expects to produce 2.0 million Au eq. oz. (+/- 5%) at a production cost of sales per Au eq. oz. sold1 of $1,360 (+/- 5%) and all-in sustaining cost1 of $1,730 (+/- 5%) per ounce sold for 2026. Total attributable capital expenditures1 are forecast to be $1,500 million (+/- 5%).Cash and cash equivalents increased to $2.7 billion and net cash7 increased to $1.9 billion at June 30, 2026.
Return of capital to shareholders:

Kinross is on track to return 40% of its free cash flow to shareholders in 2026. During the first half of the year, the Company repurchased $480 million in shares, and an additional $40 million in July. Including its quarterly dividend, Kinross has returned approximately $615 million in capital to shareholders year-to-date as of July 29, 2026.Since April 2025, Kinross returned over $1.1 billion of capital through share repurchases, representing approximately 4% of its shares outstanding.Kinross’ Board of Directors declared a quarterly dividend of $0.04 per common share payable on September 3, 2026, to shareholders of record at the close of business on August 20, 2026.
Operational highlights:

Paracatu continued its strong operating performance as the highest producing mine in the portfolio.Tasiast delivered higher production quarter-over-quarter and year-over-year. Development project highlights:

Kinross announced a Lobo-Marte project economics refresh highlighting its potential to become a long-life, low-cost cornerstone asset. Lobo-Marte is expected to produce an average of ~350,000 Au oz. per year during steady state operations at a low all-in sustaining cost (“AISC”) of approximately $1,000 per ounce6 with an attractive Net Present Value (“NPV”)8 of $4.3 billion at a $4,100 per ounce gold price.Great Bear’s Advanced Exploration (“AEX”) construction is approximately 93% complete and the first blast of the exploration decline was completed on July 27, 2026. Detailed engineering is approximately 50% complete, with permitting and procurement progressing as planned for the Main Project.At Round Mountain Phase X, underground development is advancing slightly ahead of schedule. Engineering and procurement for site and underground infrastructure is progressing on plan.At Kettle River-Curlew (“Curlew”), underground development continued ahead of schedule, while site infrastructure advanced substantially and mill refurbishment activities commenced.At Bald Mountain Redbird, mining is advancing well and the heap leach pad expansion continued ahead of schedule. Engineering and procurement activities advanced well for mining and processing infrastructure, including progressing basic engineering for the Sulphidization, Acidification, Recycling and Thickening (“SART”) plant.
Sustainability:

Consistent with Kinross’ commitment to responsible mining, its 2025 Sustainability Report was published during the second quarter, marking its 18th edition. The report provides a comprehensive summary of the Company’s sustainability performance over 2025 and outlines the Company’s sustainability priorities.
CEO commentary:
J. Paul Rollinson, CEO, made the following comments in relation to 2026 second-quarter results:

“Kinross delivered a strong second quarter, generating over $725 million of free cash flow supported by solid production, disciplined cost management and strong margins. We returned more than $275 million to shareholders through share repurchases and dividends, and we remain on track to achieve our commitment of returning 40% of annual free cash flow to shareholders in 2026. Our balance sheet remains in excellent shape and was further strengthened during the quarter, providing significant flexibility to continue advancing our high-quality development pipeline while returning capital to shareholders.

“Our project pipeline continues to advance well. We were pleased to announce a Lobo-Marte project update, highlighting its potential to produce approximately 350,000 gold ounces per year at $1,000 per ounce AISC with robust economics, building on our nearly 30-year history in Chile. Alongside continued progress at Great Bear and our U.S. projects, Lobo-Marte reinforces the significant value embedded in our project portfolio. Together, these projects support our delivery of sustainable long-term value through disciplined growth and the execution of our grade enhancement strategy.

“As we advance our operations and development projects, responsible mining remains at the core of our approach. This quarter, we published our 18th Sustainability Report, highlighting progress across key priorities including biodiversity conservation, water stewardship and community partnerships. These efforts support our commitment to creating long-term value for shareholders while making positive contributions for our stakeholders.

“Looking ahead, we are focused on maintaining our operational momentum, holding the line on costs and delivering robust margins and free cash flow. With a strong balance sheet, attractive return-of-capital framework, and compelling pipeline of development and exploration opportunities, Kinross remains well positioned to continue responsibly delivering value for our shareholders.”

 Summary of financial and operating results   Three months endedSix months ended   June 30,June 30, (in millions of U.S. dollars, except ounces, per share amounts, and per ounce amounts) 2026 2025 2026 2025 Operating Highlights(a)     Total gold equivalent ounces(b)     Produced 501,341 530,077 1,002,282 1,059,938 Sold 499,035 526,223 993,163 1,050,312 Attributable gold equivalent ounces(b)     Produced 492,326 512,574 984,889 1,024,662 Sold 490,240 508,300 976,095 1,014,864 Gold ounces - sold 486,507 519,391 968,979 1,035,659 Silver ounces - sold (000's) 771 666 1,445 1,367        Earnings(a)     Metal sales$2,238.1$1,728.5$4,645.8$3,226.0 Production cost of sales$674.7$568.4$1,365.2$1,115.1 Depreciation, depletion and amortization$275.5$262.9$551.2$551.3 Operating earnings$1,186.4$774.8$2,524.5$1,345.2 Net earnings attributable to common shareholders$844.2$530.7$1,687.2$898.7 Net earnings per share attributable to common shareholders (basic and diluted)$0.71$0.43$1.41$0.73 Adjusted net earnings(c)$847.8$541.0$1,701.9$905.0 Adjusted net earnings per share(c)$0.71$0.44$1.42$0.74        Cash Flow(a)     Net cash flow provided from operating activities$1,145.9$992.4$2,285.4$1,599.5 Attributable adjusted operating cash flow(c)$1,111.9$883.4$2,241.2$1,503.7 Capital expenditures(d)$411.0$306.1$694.2$513.8 Attributable capital expenditures(c)$406.2$301.8$685.1$505.9 Attributable free cash flow(c)$726.8$646.6$1,564.3$1,027.4        Per Ounce Metrics(a)     Average realized gold price per ounce(e)$4,483$3,284$4,677$3,071 Attributable average realized gold price per ounce(c)$4,487$3,285$4,679$3,071 Production cost of sales per equivalent ounce sold(b)(f)$1,352$1,080$1,375$1,062 Attributable production cost of sales per equivalent ounce sold(b)(c)$1,336$1,074$1,358$1,056 Attributable production cost of sales per ounce sold on a by-product basis(c)$1,253$1,044$1,275$1,027 Attributable all-in sustaining cost per equivalent ounce sold(b)(c)$1,821$1,493$1,777$1,424 Attributable all-in sustaining cost per ounce sold on a by-product basis(c)$1,751$1,469$1,704$1,400 Attributable all-in cost per equivalent ounce sold(b)(c)$2,404$1,936$2,302$1,808 Attributable all-in cost per ounce sold on a by-product basis(c)$ 2,348$1,918$ 2,242$1,789 (a)All measures and ratios include 100% of the results from Manh Choh, except measures and ratios denoted as “attributable.” “Attributable” measures and ratios include Kinross’ 70% share of Manh Choh production, sales, cash flow, capital expenditures and costs, as applicable.(b)“Gold equivalent ounces” include silver ounces produced and sold converted to a gold equivalent based on a ratio of the average spot market prices for the commodities for each period. The ratio for the second quarter and first six months of 2026 was 61.61:1 and 59.53:1, respectively (second quarter and first six months of 2025 – 97.41:1 and 93.60:1, respectively).(c)The definition and reconciliation of these non-GAAP financial measures and ratios is included on pages 16 to 21 of this news release. Non-GAAP financial measures and ratios have no standardized meaning under International Financial Reporting Standards (“IFRS”) and therefore, may not be comparable to similar measures presented by other issuers.(d)“Capital expenditures” is “Additions to property, plant and equipment” on the interim condensed consolidated statements of cash flows.(e)“Average realized gold price per ounce” is defined as gold revenue divided by total gold ounces sold.(f)“Production cost of sales per equivalent ounce sold” is defined as production cost of sales divided by total gold equivalent ounces sold.   The following operating and financial results are based on second-quarter gold equivalent production:

Production: Kinross produced 492,326 Au eq. oz. in Q2 2026, compared with 512,574 Au eq. oz. in Q2 2025, a decrease of 4%. Higher production from Tasiast and Paracatu was offset by lower production from Bald Mountain, Round Mountain and Fort Knox.

Average realized gold price9: The average realized gold price during the quarter was $4,483 per ounce, compared with $3,284 per ounce in Q2 2025, a 37% increase year-over-year.

Revenue: Revenue increased to $2,238.1 million in the second quarter, compared with $1,728.5 million during Q2 2025. The 29% year-over-year increase was due to the increase in the average realized gold price.

Production cost of sales: Production cost of sales per Au eq. oz. sold2 increased to $1,352 in the second quarter, compared with $1,080 in Q2 2025. Attributable production cost of sales per Au eq. oz. sold1 increased to $1,336 for the quarter, compared with $1,074 in Q2 2025. The increases were mainly due to higher fuel costs, higher royalty costs as a result of the higher average realized gold price, as well as higher labour costs.

Attributable production cost of sales per Au oz. sold on a by-product basis1 was $1,253 in the second quarter of 2026, compared with $1,044 in the second quarter of 2025, based on attributable gold sales of 477,879 ounces and silver sales of 761,479 ounces.

Margins4: Kinross’ margin per Au eq. oz. sold increased by 42% to $3,131 for the second quarter, compared with the Q2 2025 margin of $2,204.

Attributable all-in sustaining cost1: Attributable all-in sustaining cost per Au eq. oz. sold was $1,821 in Q2 2026, compared with $1,493 in Q2 2025.

Attributable all-in sustaining cost per Au oz. sold on a by-product basis was $1,751 in the second quarter, compared with $1,469 in Q2 2025.

Operating cash flow3: Operating cash flow increased to $1,145.9 million for Q2 2026, compared with $992.4 million for Q2 2025.

Attributable adjusted operating cash flow1 for Q2 2026 was $1,111.9 million, compared with $883.4 million for Q2 2025.

Attributable free cash flow1: Attributable free cash flow increased to $726.8 million in Q2 2026, compared with $646.6 million in Q2 2025.

Reported net earnings5: Reported net earnings increased by 59% to $844.2 million during the quarter, or $0.71 per share, compared with reported net earnings of $530.7 million, or $0.43 per share, for Q2 2025.

Adjusted net earnings6 increased to $847.8 million, or $0.71 per share, for Q2 2026, compared with $541.0 million, or $0.44 per share, for Q2 2025.

Capital expenditures10: Capital expenditures increased to $411.0 million for Q2 2026, compared with $306.1 million in Q2 2025, driven by a ramp-up of development activities at Curlew, Round Mountain Phase X, Bald Mountain Redbird and Great Bear as well as an increase in capital expenditures at Paracatu mainly due to timing.

Attributable capital expenditures1 were $406.2 million for Q2 2026, compared with $301.8 million for Q2 2025.

Balance sheet

Kinross continued to strengthen its balance sheet in the second quarter, adding approximately $470 million to its cash position after returning over $275 million in capital to shareholders. As of June 30, 2026, Kinross had cash and cash equivalents of $2.7 billion and net cash7 of $1.9 billion, compared with $2.2 billion and $1.4 billion, respectively, at the end of the first quarter.

The Company had additional available credit11 of $1.7 billion and total liquidity12 of approximately $4.4 billion as of June 30, 2026, with no debt maturities until 2033.

Return of capital to shareholders

Kinross continues to advance its 2026 buyback strategy, having repurchased and cancelled approximately $230 million in shares during the quarter, representing 7.9 million shares. Including its quarterly dividend, Kinross returned over $275 million to shareholders in Q2.

Year-to-date, approximately $520 million in shares have been repurchased in 2026, representing 17.3 million shares. Including its quarterly dividend, Kinross has returned over $600 million in capital to shareholders to date in 2026. Since April 2025, Kinross has repurchased approximately $1.1 billion in shares, reducing our share count by approximately 4%, and returned approximately $1.3 billion in capital to shareholders.

As part of its quarterly dividend program, the Company also declared a dividend of $0.04 per common share payable on September 3, 2026, to shareholders of record on August 20, 2026.

Operating results

Mine-by-mine summaries for 2026 second-quarter operating results may be found on pages 10 and 14 of this news release. Highlights include the following:

At Tasiast, production increased quarter-over-quarter and year-over-year primarily driven by higher throughput and timing of ounces processed through the mill. Cost of sales per ounce sold were in-line with the prior quarter, and increased year-over-year primarily due to higher royalties, fuel and labour costs.

At Paracatu, production was in-line quarter-over-quarter and increased year-over-year as a result of higher mill grades and recoveries, partially offset by a decrease in tonnes processed. Cost of sales per ounce sold were in-line with the prior quarter, and increased compared with Q2 2025 due to the strengthening of the Brazilian real and higher royalty costs, as well as planned increased drilling and blasting.

At La Coipa, production increased quarter-over-quarter as a result of higher planned grades and higher throughput. Compared with Q2 2025, production increased primarily due to higher tonnes processed and gold grades, partially offset by expected gold recoveries. Quarter-over-quarter, cost of sales per ounce sold decreased due to the increase in production, and was comparable year-over-year.

At Fort Knox, production was in-line quarter-over-quarter and cost of sales per ounce sold decreased due to the timing of ounces processed through the mill. Production was lower year-over-year primarily due to the timing of ounces processed through the mill, and cost of sales per ounce sold increased due to higher fuel, power and contractor costs as well as lower-grade, lower-recovery ore tonnes processed through the mill.

Round Mountain is currently in a phase of higher waste mining and lower-grade, lower-volume ore supply as it is stripping Phase S. Higher-grade, higher recovery ore is expected from Phase S in the second half of the year.

At Bald Mountain, production was in-line with Q1 2026, and decreased year-over-year due to grades and the timing of ounces recovered from the heap leach pads. Quarter-over-quarter, cost of sales per ounce sold decreased due to the ramp-up of capital development at Redbird in Q2 and higher ounces placed on the heap leach pads, and increased year-over-year due to the decrease in production and higher reagent and fuel costs.

Development projects

Lobo-Marte

Kinross announced an updated view of the economics for its Lobo-Marte project, based on a refresh of the 2021 feasibility study economics, reaffirming its potential to become a long-life, low-cost cornerstone asset in the Company’s portfolio. Based on the initial mine plan, Lobo-Marte is expected to produce an average of ~350,000 Au oz. per year during steady state operations, with a low estimated AISC of approximately $1,000 per ounce6.

The initial mine plan includes approximately 6.7 Moz. of proven and probable reserves with significant potential for mine life extension through the 2.8 Moz. of Measured and Indicated resource (“M&I”) and 670,000 oz. inferred resource, as well as on the wider prospective land package at Lobo-Marte.

The project has an estimated NPV8 of $4.3 billion, Internal Rate of Return13 of 26% and payback of 2.3 years at a $4,100 per ounce gold price.

The Company continues to advance permitting, engineering and execution planning with the project’s Environmental Impact Assessment currently progressing through Chile’s permitting process.

Great Bear  

At Great Bear, Kinross continues to progress its AEX program alongside permitting, detailed engineering, and procurement activities for the Main Project.  

Following receipt of the AEX permits in April, construction continued on the final earthworks and liner installation for the remaining ponds and the stockpile pads. Surface construction is now 93% complete, and the first blast of the exploration decline was completed on July 27, 2026. Underground development at AEX is designed to provide access for infill drilling of the resource and exploration drilling to further delineate extensions of mineralization.  

For the Main Project, detailed engineering is approximately 50% complete. Procurement of major equipment continues to advance, with contracts awarded for the process plant, power, and paste plant equipment. Requests for Proposals for the camp, administration, and process buildings are ongoing. Selection of the open pit mining fleet is nearing completion.  

Main Project permitting activities are progressing as planned. Federally, Great Bear entered the Information Request phase of the Impact Assessment process following submission of the third and final phase of its Impact Statement to the Impact Assessment Agency of Canada (“IAAC”) in March 2026. Kinross is working with IAAC to respond to the third-party comments collected by IAAC during the Information Request phase. 

Provincially, the Ministry of Energy and Mines deemed the final One Project, One Process (“1P1P”) Project Definition complete in early May, and subsequently issued the Integrated Authorization and Permitting Plan for the Main Project. Kinross has submitted and is awaiting finalization of the Integrated Plan for Indigenous Consultation and advancing submitted permit applications in accordance with the Integrated Authorization and Permitting Plan. 

We are pleased to report that Great Bear has recently signed a confidential Community Benefits Agreement with the Northwestern Ontario Métis Community, which is part of the Métis Nation of Ontario. Among other matters, the agreement outlines the key economic terms and includes financial accommodation, among other benefits, to the community. As previously disclosed, a Memorandum of Understanding was signed with Lac Seul and Wabauskang First Nations to facilitate the Impact and Benefits Agreement that the parties continue to advance.

Drilling at the Strider Zone continued in Q2, stepping out over 2.7 kilometres from the Viggo Pit and extending the footprint of LP-style, high-grade mineralization on strike. Currently, the Strider Zone has been delineated to a vertical depth of 150 metres, with the next phase of drilling focused on testing the extents both along strike and at depth.

Key intercepts from Q2 include:

REG-26-186: 1.5m @ 15.98 g/t AuREG-26-193: 1.1m @ 27.6 g/t AuREG-26-191: 1.0m @ 6.03 g/t Au
Round Mountain Phase X

Underground development at Phase X is advancing slightly ahead of schedule, with over 8,400 metres developed to date. Engineering work is progressing well and site planning for surface and underground infrastructure is well advanced. Procurement of long lead items including mining equipment is on schedule.

Curlew

At Curlew, construction of the tailings dewatering plant building is complete and installation of mechanical equipment is underway. The mill refurbishment contractor has onboarded and activities are ramping up. The underground mine development continues to advance ahead of schedule, including the construction of collars to support raise boring activities commencing in Q3.

Bald Mountain Redbird

At Redbird, mining is ongoing and development activities continued to progress ahead of plan during the quarter. Key milestones included the completion of heap leach pad earthworks, and the delivery and commissioning of mining equipment. Basic engineering of the SART plant is approximately 50% complete and the detailed engineering contractor has been selected.

Sustainability

In June, Kinross published its 2025 Sustainability Report, highlighting the Company’s continued focus on responsible mining, environmental stewardship, strong governance and creating long-term value for stakeholders. The report details Kinross’ progress across key Sustainability priorities, including advancing climate and water management initiatives, supporting local employment and procurement, and investing in community partnerships across its operating regions.

In the Sustainability Report, the Company highlighted several biodiversity and nature-related initiatives. In Brazil, Kinross continued its efforts to protect the Cerrado biome and advance spring protection programs near Paracatu, supporting ecosystem conservation and responsible water stewardship. In Mauritania, the Company continued to advance the Tasiast Green Project as part of its ongoing commitment to environmental performance and climate-related initiatives. Across its portfolio, Kinross remains focused on maintaining its strong Sustainability performance, including its focus on biodiversity conservation, responsible resource management and minimizing environmental impacts.

During the second quarter of 2026, Tasiast provided humanitarian support to communities in the Inchiri region of Mauritania. Kinross also funded a full-time dentist position in Tonopah, Nevada, to improve access to healthcare services in the community. In governance, the Company published its refreshed Procurement Policy and continued implementation of its Responsible Use of Artificial Intelligence Policy.

Senior Management update

Kinross is pleased to announce the appointment of Bernard Wessels as Chief Operating Officer (“COO”) to succeed Claude Schimper, who will be retiring later this year. Mr. Schimper will remain with the Company for a transition period, supporting business continuity as part of a structured succession plan.

Mr. Wessels is a seasoned mining engineer with over 25 years of operations management experience, and most recently served as Group Head, Health, Safety and Security at Newmont Corporation. During his time at Newmont, he also held the roles of Managing Director, North America, and General Manager at the Peñasquito and Ahafo mines. Before joining Newmont in 2017, he held a variety of senior operational positions at companies such as Sibanye-Stillwater, Harmony Gold and a joint venture between Atlatsa Resources and Anglo American Platinum. He holds a Baccalaureus Degree in Mining Engineering from the University of Johannesburg as well as Leadership and Project Management certificates from the University of Witwatersrand and the University of Pretoria.

Mr. Schimper joined Kinross in 2010, and before being appointed COO in July 2022, led the Company’s Russia and West Africa regions. A steadfast champion of health and safety he led the evolution of Kinross’ operating culture, including the development of the Safety Excellence program and the launch of Safeground, the Company’s global health and safety program. His drive for continuous improvement helped deliver strong operational performance across the portfolio, including the successful ramp up of the Tasiast mine, record production achievements and the advancement of key growth projects that will continue to benefit the Company.

Board update

On July 29, 2026, Kinross appointed Alice Wong to its Board of Directors. Ms. Wong brings more than 35 years of leadership experience in the nuclear fuel, mining and energy sectors, including senior executive roles at Cameco Corporation. She currently serves on the board of Hecla Mining Company and chairs its Corporate Governance, Nominating and Sustainability Committee. Ms. Wong holds a Master of Arts in Economics and a Bachelor of Commerce from the University of Saskatchewan.

Conference call details

In connection with this news release, Kinross will hold a conference call and audio webcast on July 30, 2026, at 8:00 a.m. EDT to discuss the results, followed by a question-and-answer session. To access the call, please dial:

Canada & US toll-free – (888) 596-4144; Conference ID: 9425112
Outside of Canada & US – +1 (646) 968-2525; Conference ID: 9425112

Replay (available up to 14 days after the call):

Canada & US toll-free – +1 (800) 770-2030; Conference ID: 9425112 #
Outside of Canada & US – +1 (609) 800-9909; Conference ID: 9425112 #

You may also access the conference call on a listen-only basis via webcast at our website www.kinross.com. The audio webcast will be archived on www.kinross.com.

About Kinross Gold Corporation

Kinross is a Canadian-based global senior gold mining company with operations and projects in the United States, Brazil, Mauritania, Chile and Canada. Our focus is on delivering value based on the core principles of responsible mining, operational excellence, disciplined growth, and balance sheet strength. Kinross maintains listings on the Toronto Stock Exchange (symbol: K) and the New York Stock Exchange (symbol: KGC).

Media Contact
Samantha Sheffield
Director, Corporate Communications
phone: 416-365-3034
[email protected]

Investor Relations Contact
David Shaver                                 
Executive Vice-President, Investor Relations & Communications                
phone: 416-365-2854                        
[email protected]

Review of operations

            Three months ended June 30,Gold equivalent ounces
      Produced Sold Production cost of sales
($millions) Production cost of
sales/equivalent ounce sold  2026
2025
 2026
2025
 2026
2025
 20262025            Tasiast133,311 119,241  132,165 121,745  130.8 102.6  990843Paracatu157,526 149,264  157,011 148,787  173.9 142.6  1,108958La Coipa59,039 54,139  54,749 50,400  76.4 70.4  1,3951,397            Fort Knox104,500 115,064  107,591 113,200  177.5 141.3  1,6501,248Round Mountain19,789 38,665  20,118 37,864  67.6 52.1  3,3601,376Bald Mountain27,176 53,704  27,401 54,227  48.5 59.4  1,7701,095United States Total151,465 207,433  155,110 205,291  293.6 252.8  1,8931,231Less: Manh Choh non-controlling interest (30%)(9,015)(17,503) (8,795)(17,923) (19.8)(22.5)   United States Attributable Total142,450 189,930  146,315 187,368  273.8 230.3  1,8711,229            Operations Total501,341 530,077  499,035 526,223  674.7 568.4  1,3521,080            Attributable Total492,326 512,574  490,240 508,300  654.9 545.9  1,3361,074                                     Six months ended June 30,Gold equivalent ounces
      Produced Sold Production cost of sales
($millions) Production cost of
sales/equivalent ounce sold  2026
2025
 2026
2025
 2026
2025
 20262025            Tasiast263,325 256,870  263,844 251,238  261.1 207.6  990826Paracatu318,109 295,903  315,860 295,642  351.6 282.2  1,113955La Coipa113,250 106,454  108,486 106,270  158.4 134.5  1,4601,266            Fort Knox206,872 227,118  203,809 225,310  352.3 273.1  1,7291,212Round Mountain45,989 74,351  46,202 73,824  140.0 109.1  3,0301,478Bald Mountain54,737 99,242  54,962 98,028  101.8 108.6  1,8521,108United States Total307,598 400,711  304,973 397,162  594.1 490.8  1,9481,236Less: Manh Choh non-controlling interest (30%)(17,393)(35,276) (17,068)(35,448) (39.7)(43.2)   United States Attributable Total290,205 365,435  287,905 361,714  554.4 447.6  1,9261,237            Operations Total1,002,282 1,059,938  993,163 1,050,312  1,365.2 1,115.1  1,3751,062            Attributable Total984,889 1,024,662  976,095 1,014,864  1,325.5 1,071.9  1,3581,056           
Consolidated balance sheets

        (unaudited, expressed in millions of U.S. dollars, except share amounts)               As at    June 30, December 31,     2026   2025          Assets      Current assets      Cash and cash equivalents $2,656.4  $1,742.3   Restricted cash  15.9   13.5   Accounts receivable and prepaid assets  130.1   145.8   Inventories  1,385.0   1,370.3   Other current assets  54.3   16.6      4,241.7   3,288.5   Non-current assets      Property, plant and equipment  8,505.2   8,289.4   Long-term investments  97.6   99.3   Other long-term assets  752.1   708.9   Deferred tax assets  -   25.0   Total assets $13,596.6  $12,411.1          Liabilities      Current liabilities      Accounts payable and accrued liabilities $783.4  $716.4   Current income tax payable  587.5   595.7   Current portion of provisions  68.9   74.2   Other current liabilities  26.8   13.3      1,466.6   1,399.6      Non-current liabilities         Long-term debt  738.8   738.2      Provisions  975.8   976.6      Other long-term liabilities  57.0   64.8      Deferred tax liabilities  583.8   537.8   Total liabilities $3,822.0  $3,717.0          Equity         Common shareholders' equity      Common share capital $4,335.1  $4,382.0   Contributed surplus  9,648.9   10,137.6   Accumulated deficit  (4,351.6)  (5,943.3)  Accumulated other comprehensive income (loss)  20.9   (0.3)  Total common shareholders' equity  9,653.3   8,576.0      Non-controlling interests  121.3   118.1   Total equity $9,774.6  $8,694.1   Total liabilities and equity $13,596.6  $12,411.1          Common shares       Authorized Unlimited Unlimited  Issued and outstanding  1,186,240,789   1,199,843,037         
Consolidated statements of operations

           (unaudited, expressed in millions of U.S. dollars, except per share amounts)         Three months ended Six months ended   June 30, June 30, June 30, June 30,    2026   2025   2026   2025   Revenue         Metal sales$ 2,238.1  $1,728.5  $ 4,645.8  $3,226.0             Cost of sales         Production cost of sales 674.7   568.4   1,365.2   1,115.1   Depreciation, depletion and amortization 275.5   262.9   551.2   551.3   Total cost of sales 950.2   831.3   1,916.4   1,666.4   Gross profit 1,287.9   897.2   2,729.4   1,559.6   Other operating expense 30.0   31.1   50.3   45.1   Exploration and business development 39.1   61.7   77.3   104.0   General and administrative 32.4   29.6   77.3   65.3   Operating earnings 1,186.4   774.8   2,524.5   1,345.2   Other expense - net (3.9)  (19.8)  (17.2)  (33.0)  Finance income 19.8   7.4   35.2   11.6   Finance expense (20.3)  (32.9)  (39.3)  (68.1)  Earnings before tax 1,182.0   729.5   2,503.2   1,255.7   Income tax expense - net (330.2)  (170.9)  (795.4)  (307.7)  Net earnings $ 851.8  $558.6  $ 1,707.8  $948.0   Net earnings attributable to:         Non-controlling interests$ 7.6  $27.9  $ 20.6  $49.3   Common shareholders$ 844.2  $530.7  $ 1,687.2  $898.7   Earnings per share attributable to common shareholders         Basic$ 0.71  $0.43  $ 1.41  $0.73   Diluted$ 0.71  $0.43  $ 1.41  $0.73  
Consolidated statements of cash flows

(unaudited, expressed in millions of U.S. dollars)           Three months ended Six months ended   June 30, June 30, June 30, June 30,    2026   2025   2026   2025  Net inflow (outflow) of cash related to the following activities:         Operating:         Net earnings $851.8  $558.6  $1,707.8  $948.0  Adjustments to reconcile net earnings to net cash provided from operating activities:         Depreciation, depletion and amortization  275.5   262.9   551.2   551.3  Share-based compensation expense  3.4   3.2   10.0   7.8  Finance expense - net  0.5   25.5   4.1   56.5  Income tax expense - net  330.2   170.9   795.4   307.7  Foreign exchange losses  1.2   5.8   8.7   11.3  Other  10.2   9.2   2.9   (11.8) Reclamation payments  (18.9)  (6.9)  (29.0)  (13.1) Changes in working capital:         Accounts receivable and other assets  1.8   14.4   8.7   25.8  Inventories  (33.7)  8.9   2.1   (29.5) Accounts payable and accrued liabilities  50.8   49.9   (1.0)  33.8  Cash flow provided from operating activities  1,472.8   1,102.4   3,060.9   1,887.8  Income taxes paid  (326.9)  (110.0)  (775.5)  (288.3) Net cash flow provided from operating activities  1,145.9   992.4   2,285.4   1,599.5  Investing:         Additions to property, plant and equipment  (411.0)  (306.1)  (694.2)  (513.8) Interest paid capitalized to property, plant and equipment  -   -   (7.1)  (13.5) Proceeds from long-term investments and other assets  27.6   -   27.6   -  Additions to long-term investments and other assets  (19.2)  (14.8)  (44.5)  (23.9) Increase in restricted cash  (0.6)  (0.8)  (2.4)  (2.5) Interest received and other  19.4   9.0   34.5   13.2  Net cash flow used in investing activities  (383.8)  (312.7)  (686.1)  (540.5) Financing:         Repayment of debt  -   -   -   (200.0) Interest paid  -   -   (17.2)  (24.0) Payment of lease liabilities  (2.0)  (1.5)  (4.2)  (3.0) Distributions paid to non-controlling interest  (9.0)  (30.0)  (18.0)  (54.0) Dividends paid to common shareholders  (47.6)  (36.7)  (95.5)  (73.6) Payments for employee taxes withheld from restricted share unit releases  (0.3)  -   (55.6)  (10.0) Repurchase and cancellation of shares  (230.0)  (170.1)  (480.1)  (170.1) Taxes paid on repurchase of shares  -   -   (12.1)  -  Net cash flow used in financing activities  (288.9)  (238.3)  (682.7)  (534.7) Effect of exchange rate changes on cash and cash equivalents  (1.8)  0.5   (2.5)  0.7  Increase in cash and cash equivalents  471.4   441.9   914.1   525.0  Cash and cash equivalents, beginning of period  2,185.0   694.6   1,742.3   611.5  Cash and cash equivalents, end of period $2,656.4  $1,136.5  $2,656.4  $1,136.5             Operating Summary
 MinePeriodTonnes Ore MinedOre Processed (Milled)Ore
Processed (Heap Leach)Grade (Mill)Grade (Heap Leach)Recovery (a)(b)Gold Eq Production(c)Gold Eq Sales(c)Production cost of salesProduction
cost of sales/oz(d)Cap Ex - sustaining(e)Total Cap
Ex (e)   ('000 tonnes)('000 tonnes)('000 tonnes)(g/t)(g/t)(%)(ounces)(ounces)($ millions)($/ounce)($ millions)($ millions)West AfricaTasiastQ2 20263,1722,208-1.82-94%
133,311132,165$ 130.8$ 990$ 46.6$ 96.3Q1 20263,4952,092-2.30-94%
130,014131,679$130.3$990$10.8$60.0Q4 20253,1202,252-1.87-94%
125,625118,912$119.2$1,002$28.6$80.5Q3 20251,6852,181-1.78-94%
120,934116,251$103.4$889$47.6$102.0Q2 20251,9211,730-2.11-95%
119,241121,745$102.6$843$23.1$89.7AmericasParacatuQ2 202611,33213,216-0.43-84%
157,526157,011$ 173.9$ 1,108$ 51.4$ 64.2Q1 202610,27212,507-0.41-85%
160,583158,849$177.7$1,119$22.2$25.8Q4 202510,92912,395-0.45-83%
155,048154,565$165.0$1,068$67.6$67.6Q3 202512,95813,214-0.44-82%
150,367149,903$139.9$933$58.2$58.2Q2 202513,49714,527-0.39-82%
149,264148,787$142.6$958$38.4$38.4La Coipa(f)Q2 20269881,151-2.07-60%
59,03954,749$ 76.4$ 1,395$ 17.9$ 22.8Q1 2026580972-1.64-74%
54,21153,737$82.0$1,526$19.9$21.7Q4 20251,2191,203-2.42-74%
67,31971,419$80.7$1,130$31.7$31.7Q3 20251,006932-2.36-76%
57,99757,544$69.0$1,199$18.5$18.5Q2 2025580911-1.77-78%
54,13950,400$70.4$1,397$25.0$25.0Fort Knox (100%)(g)Q2 20265,6811,8663,9651.510.2782%
104,500107,591$ 177.5$ 1,650$ 37.3$ 40.0Q1 20269,5231,1547,3141.450.2886%
102,37296,218$174.8$1,817$24.1$24.1Q4 202511,0561,6458,8051.020.2388%
71,52374,294$125.8$1,693$38.0$38.0Q3 20258,1401,5116,5381.860.2390%
112,181117,500$159.7$1,359$45.0$45.0Q2 20257,6391,6365,5291.720.2388%
115,064113,200$141.3$1,248$43.0$43.0Fort Knox (attributable)(g)Q2 20265,6101,7963,9651.370.2782%
95,48598,796$ 157.7$ 1,596$ 32.5$ 35.2Q1 20269,4631,1037,3141.310.2885%
93,99487,945$154.9$1,761$19.8$19.8Q4 202511,0011,5978,8050.930.2387%
65,43467,882$113.6$1,673$31.5$31.5Q3 20258,0561,4256,5381.550.2389%
95,742100,878$138.4$1,372$40.4$40.4Q2 20257,5351,5675,5291.470.2387%
97,56195,277$118.8$1,247$38.7$38.7Round MountainQ2 20262,3899518780.390.2944%
19,78920,118$ 67.6$ 3,360$ 6.9$ 49.1Q1 20267909535130.370.2152%
26,20026,084$72.4$2,776$4.9$53.9Q4 20257379661,1100.490.2967%
31,75431,641$86.6$2,737$8.6$41.5Q3 20251,6599141,1130.660.3272%
37,29737,274$78.1$2,095$4.5$33.0Q2 20252,8818561,6820.720.3080%
38,66537,864$52.1$1,376$5.7$32.8Bald MountainQ2 20266,046-6,046-0.30nm27,17627,401$ 48.5$ 1,770$ 4.0$ 54.0Q1 20263,985-3,985-0.30nm27,56127,561$53.3$1,934$6.9$39.7Q4 20253,165-3,165-0.30nm38,40237,141$55.4$1,492$13.1$51.6Q3 20252,182-2,182-0.31nm41,52542,261$48.5$1,148$5.3$27.9Q2 20251,578-1,578-1.07nm53,70454,227$59.4$1,095$12.7$40.4 (a)Due to the nature of heap leach operations, recovery rates at Bald Mountain cannot be accurately measured on a quarterly basis. Recovery rates at Fort Knox and Round Mountain represent mill recovery only.(b)"nm" means not meaningful.(c)Gold equivalent ounces include silver ounces produced and sold converted to a gold equivalent based on the ratio of the average spot market prices for the commodities for each period. The ratios for the quarters presented are as follows: Q2 2026: 61.61:1; Q1 2026: 57.79:1; Q4 2025: 76.34:1; Q3 2025: 87.73:1; Q2 2025: 97.41:1.(d)“Production cost of sales per equivalent ounce sold” is defined as production cost of sales divided by total gold equivalent ounces sold.(e)"Total Cap Ex" is “Additions to property, plant and equipment” on the interim condensed consolidated statements of cash flows. "Cap Ex - sustaining" is a non-GAAP financial measure. The definition and reconciliation of this non-GAAP financial measure is included on page [•] of this news release.(f)La Coipa silver grade and recovery were as follows: Q2 2026: 44.14 g/t, 33%; Q1 2026: 35.03 g/t, 46%; Q4 2025: 33.21 g/t, 41%; Q3 2025: 41.34 g/t, 49%; Q2 2025: 28.89 g/t, 50%.(g)The Fort Knox segment is composed of Fort Knox and Manh Choh. Manh Choh tonnes of ore processed and grade were as follows: Q2 2026: 229,965 tonnes, 4.98 g/t; Q1 2026: 170,077 tonnes, 4.51 g/t; Q4 2025: 158,016 tonnes, 4.08 g/t; Q3 2025: 286,496 tonnes, 7.05 g/t; Q2 2025: 231,451 tonnes, 7.39 g/t. The attributable results for Fort Knox include 100% of Fort Knox and 70% of Manh Choh.   Reconciliation of non-GAAP financial measures and ratios 

The Company has included certain non-GAAP financial measures and ratios in this document. These financial measures and ratios are not defined under IFRS and should not be considered in isolation. The Company believes that these financial measures and ratios, together with financial measures and ratios determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. The inclusion of these financial measures and ratios is meant to provide additional information and should not be used as a substitute for performance measures prepared in accordance with IFRS. These financial measures and ratios are not necessarily standard and therefore may not be comparable to other issuers.

Adjusted Net Earnings and Adjusted Net Earnings per Share

Adjusted net earnings and adjusted net earnings per share are non-GAAP financial measures and ratios which determine the performance of the Company, excluding certain impacts which the Company believes are not reflective of the Company’s underlying performance for the reporting period, such as the impact of foreign exchange gains and losses, reassessment of prior year taxes and/or taxes otherwise not related to the current period, impairment charges (reversals), gains and losses and other one-time costs related to acquisitions, dispositions and other transactions, and non-hedge derivative gains and losses. Although some of the items are recurring, the Company believes that they are not reflective of the underlying operating performance of its current business and are not necessarily indicative of future operating results. Management believes that these measures and ratios, which are used internally to assess performance and in planning and forecasting future operating results, provide investors with the ability to better evaluate underlying performance, particularly since the excluded items are typically not included in public guidance. However, adjusted net earnings and adjusted net earnings per share measures and ratios are not necessarily indicative of net earnings and earnings per share measures and ratios as determined under IFRS.

The following table provides a reconciliation of net earnings to adjusted net earnings for the periods presented:

                (expressed in millions of U.S. dollars, except per share amounts)Three months ended Six months ended June 30, June 30,    2026  2025   2026  2025          Net earnings attributable to common shareholders - as reported$844.2 $530.7  $1,687.2 $898.7  Adjusting items:       Foreign exchange (gains) losses (1.8) 11.1   4.2  18.8   Foreign exchange gains on translation of tax basis and foreign exchange on deferred income taxes within income tax expense (5.6) (15.1)  (10.1) (21.0)  Taxes in respect of prior periods 2.9  3.3   5.1  (4.6)  Costs in connection with conveyor belt repairs 9.0  -   20.1  -   Tasiast mill fire related costs -  13.0   -  13.0   Other 1.4  1.7   (0.2) 3.4   Tax effects of the above adjustments (2.3) (3.7)  (4.4) (3.3)    3.6  10.3   14.7  6.3  Adjusted net earnings$847.8 $541.0  $1,701.9 $905.0  Weighted average number of common shares outstanding - Basic 1,191.6  1,225.7   1,195.5  1,228.1  Adjusted net earnings per share$0.71 $0.44  $1.42 $0.74  Basic earnings per share attributable to common shareholders - as reported$0.71 $0.43  $1.41 $0.73             Attributable Free Cash Flow

Attributable free cash flow is a non-GAAP financial measure and is defined as net cash flow provided from operating activities less attributable capital expenditures and non-controlling interest included in net cash flows provided from operating activities. The Company believes that this measure, which is used internally to evaluate the Company’s underlying cash generation performance and the ability to repay creditors and return cash to shareholders, provides investors with the ability to better evaluate the Company’s underlying performance. However, this measure is not necessarily indicative of operating earnings or net cash flow provided from operating activities as determined under IFRS.

The following table provides a reconciliation of attributable free cash flow for the periods presented:

          (expressed in millions of U.S. dollars)Three months ended Six months ended June 30, June 30,    2026  2025   2026  2025          Net cash flow provided from operating activities - as reported$1,145.9 $992.4  $2,285.4 $1,599.5  Adjusting items:       Attributable(a) capital expenditures (406.2) (301.8)  (685.1) (505.9) Non-controlling interest(b) cash flow from operating activities (12.9) (44.0)  (36.0) (66.2) Attributable(a) free cash flow$726.8 $646.6  $1,564.3 $1,027.4                   See pages 21 and 22 for details of the footnotes referenced within the table above.

Attributable Adjusted Operating Cash Flow 

Attributable adjusted operating cash flow is a non-GAAP financial measure and is defined as net cash flow provided from operating activities excluding changes in working capital, certain impacts which the Company believes are not reflective of the Company’s regular operating cash flow, and net cash flows provided from operating activities, net of working capital changes, relating to non-controlling interests. Working capital is excluded given that numerous factors can result in it being volatile. The Company uses attributable adjusted operating cash flow internally as a measure of the underlying operating cash flow performance and future operating cash flow-generating capability of the Company. However, the attributable adjusted operating cash flow measure is not necessarily indicative of net cash flow provided from operating activities as determined under IFRS.

The following table provides a reconciliation of attributable adjusted operating cash flow for the periods presented:

                (expressed in millions of U.S. dollars)Three months ended Six months ended June 30, June 30,    2026 2025(m)  2026 2025(m)         Net cash flow provided from operating activities - as reported$1,145.9 $992.4  $2,285.4 $1,599.5          Adjusting items:       Working capital changes:       Accounts receivable and other assets (1.8) (14.4)  (8.7) (25.8)  Inventories 33.7  (8.9)  (2.1) 29.5   Accounts payable and accrued liabilities (50.8) (49.9)  1.0  (33.8)    1,127.0  919.2   2,275.6  1,569.4  Non-controlling interest(b) cash flow from operating activities, net of working capital changes (15.1) (35.8)  (34.4) (65.7) Attributable(a) adjusted operating cash flow$1,111.9 $883.4  $2,241.2 $1,503.7                   See pages 21 and 22 for details of the footnotes referenced within the table above.

Attributable Average Realized Gold Price per Ounce

Attributable average realized gold price per ounce is a non-GAAP ratio which calculates the average price realized from gold sales attributable to the Company. The Company believes that this measure provides a more accurate measure with which to compare the Company's gold sales performance to market gold prices. The following table provides a reconciliation of attributable average realized gold price per ounce for the periods presented:

                (expressed in millions of U.S. dollars, except ounces and average realized gold price per ounce)Three months ended Six months ended June 30, June 30,    2026  2025   2026  2025          Metal sales - as reported $2,238.1 $1,728.5  $4,645.8 $3,226.0  Less: silver revenue(c) (57.0) (22.6)  (113.7) (45.1) Less: non-controlling interest(b) gold revenue (36.8) (58.0)  (75.7) (108.1) Attributable(a) gold revenue$2,144.3 $1,647.9  $4,456.4 $3,072.8          Gold ounces sold  486,507  519,391   968,979  1,035,659  Less: non-controlling interest(b) gold ounces sold (8,628) (17,764)  (16,641) (35,147) Attributable(a) gold ounces sold 477,879  501,627   952,338  1,000,512  Attributable(a) average realized gold price per ounce$4,487 $3,285  $4,679 $3,071  Average realized gold price per ounce(d)$4,483 $3,284  $4,677 $3,071          
See pages 21 and 22 for details of the footnotes referenced within the table above. 

Attributable Production Cost of Sales per Equivalent Ounce Sold

Production cost of sales per equivalent ounce sold is defined as production cost of sales, as reported on the consolidated statement of operations, divided by the total number of gold equivalent ounces sold. This measure converts the Company’s non-gold production into gold equivalent ounces and credits it to total production.

Attributable production cost of sales per equivalent ounce sold is a non-GAAP ratio and is defined as attributable production cost of sales divided by the attributable number of gold equivalent ounces sold. This measure converts the Company’s attributable non-gold production into gold equivalent ounces and credits it to total attributable production. Management uses this measure to monitor and evaluate the performance of its operating properties that are attributable to its shareholders.

The following table provides a reconciliation of production cost of sales and attributable production cost of sales per equivalent ounce sold for the periods presented:

           (expressed in millions of U.S. dollars, except ounces and production cost of sales per equivalent ounce)Three months ended Six months ended June 30, June 30,    2026  2025   2026  2025          Production cost of sales - as reported $674.7 $568.4  $1,365.2 $1,115.1  Less: non-controlling interest(b) production cost of sales (19.8) (22.5)  (39.7) (43.2) Attributable(a) production cost of sales$654.9 $545.9  $1,325.5 $1,071.9          Gold equivalent ounces sold  499,035  526,223   993,163  1,050,312  Less: non-controlling interest(b) gold equivalent ounces sold (8,795) (17,923)  (17,068) (35,448) Attributable(a) gold equivalent ounces sold 490,240  508,300   976,095  1,014,864  Attributable(a) production cost of sales per equivalent ounce sold$1,336 $1,074  $1,358 $1,056  Production cost of sales per equivalent ounce sold(e)$1,352 $1,080  $1,375 $1,062                   See pages 21 and 22 for details of the footnotes referenced within the table above. 

Attributable Production Cost of Sales per Ounce Sold on a By-Product Basis

Attributable production cost of sales per ounce sold on a by-product basis is a non-GAAP ratio which calculates the Company’s non-gold production as a credit against its per ounce production costs, rather than converting its non-gold production into gold equivalent ounces and crediting it to total production, as is the case in co-product accounting. Management believes that this ratio provides investors with the ability to better evaluate Kinross’ production cost of sales per ounce on a comparable basis with other major gold producers who routinely calculate their cost of sales per ounce using by-product accounting rather than co-product accounting.

The following table provides a reconciliation of attributable production cost of sales per ounce sold on a by-product basis for the periods presented:

                (expressed in millions of U.S. dollars, except ounces and production cost of sales per ounce)Three months ended Six months ended June 30, June 30,    2026  2025   2026  2025          Production cost of sales - as reported $ 674.7 $568.4  $ 1,365.2 $1,115.1  Less: non-controlling interest(b) production cost of sales (19.8) (22.5)  (39.7) (43.2) Less: attributable(a) impact of silver by-product(n) (56.2) (22.0)  (111.7) (44.1) Attributable(a) production cost of sales on a by-product basis$ 598.7 $523.9  $ 1,213.8 $1,027.8          Gold ounces sold  486,507  519,391   968,979  1,035,659  Less: non-controlling interest(b) gold ounces sold (8,628) (17,764)  (16,641) (35,147) Attributable(a) gold ounces sold 477,879  501,627   952,338  1,000,512  Attributable(a) production cost of sales per ounce sold on a by-product basis$ 1,253 $1,044  $ 1,275 $1,027  Production cost of sales per equivalent ounce sold(e)$ 1,352 $1,080  $ 1,375 $1,062                   See pages 21 and 22 for details of the footnotes referenced within the table above.

Attributable All-In Sustaining Cost and All-In Cost per Ounce Sold on a By-Product Basis

Attributable all-in sustaining cost and all-in cost per ounce sold on a by-product basis are non-GAAP financial measures and ratios, as applicable, calculated based on guidance published by the World Gold Council (“WGC”). The WGC is a market development organization for the gold industry and is an association whose membership comprises leading gold mining companies including Kinross. Although the WGC is not a mining industry regulatory organization, it worked closely with its member companies to develop these metrics. Adoption of the all-in sustaining cost and all-in cost metrics is voluntary and not necessarily standard, and therefore, these measures and ratios presented by the Company may not be comparable to similar measures and ratios presented by other issuers. The Company believes that the all-in sustaining cost and all-in cost measures complement existing measures and ratios reported by Kinross.

All-in sustaining cost includes both operating and capital costs required to sustain gold production on an ongoing basis. The value of silver sold is deducted from the total production cost of sales as it is considered residual production, i.e. a by-product. Sustaining operating costs represent expenditures incurred at current operations that are considered necessary to maintain current production. Sustaining capital represents capital expenditures at existing operations comprising mine development costs, including capitalized development, and ongoing replacement of mine equipment and other capital facilities, and does not include capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements at existing operations.

All-in cost is comprised of all-in sustaining cost as well as operating expenditures incurred at locations with no current operation, or costs related to other non-sustaining activities, and capital expenditures for major growth projects or enhancement capital for significant infrastructure improvements at existing operations.

Attributable all-in sustaining cost and all-in cost per ounce sold on a by-product basis are calculated by adjusting production cost of sales, as reported on the consolidated statements of operations, as follows:

                (expressed in millions of U.S. dollars, except ounces and costs per ounce)Three months ended Six months ended June 30, June 30,    2026  2025   2026  2025          Production cost of sales - as reported$674.7 $568.4  $1,365.2 $1,115.1  Less: non-controlling interest(b) production cost of sales (19.8) (22.5)  (39.7) (43.2) Less: attributable(a) impact of silver by-product(n) (56.2) (22.0)  (111.7) (44.1) Attributable(a) production cost of sales on a by-product basis$598.7 $523.9  $1,213.8 $1,027.8  Adjusting items on an attributable(a) basis:       General and administrative(f) 32.4  29.6   77.3  65.3   Other operating expense - sustaining(g) 4.8  0.9   5.0  1.1   Reclamation and remediation - sustaining(h) 23.5  22.4   46.6  44.7   Exploration and business development - sustaining(i) 15.7  15.3   31.8  27.8   Additions to property, plant and equipment - sustaining(j) 159.7  143.7   244.3  231.9   Lease payments - sustaining(k) 1.8  1.3   3.8  2.6  All-in Sustaining Cost on a by-product basis - attributable(a)$836.6 $737.1  $1,622.6 $1,401.2  Adjusting items on an attributable(a) basis:       Other operating expense - non-sustaining(g) 13.9  19.1   22.4  35.3   Reclamation and remediation - non-sustaining(h) 1.8  2.3   3.9  4.6   Exploration and business development - non-sustaining(i) 23.2  45.5   44.9  74.9   Additions to property, plant and equipment - non-sustaining(j) 246.5  158.1   440.8  274.0   Lease payments - non-sustaining(k) 0.2  0.2   0.4  0.4  All-in Cost on a by-product basis - attributable(a)$1,122.2 $962.3  $2,135.0 $1,790.4  Gold ounces sold
 486,507  519,391   968,979  1,035,659  Less: non-controlling interest(b) gold ounces sold (8,628) (17,764)  (16,641) (35,147) Attributable(a) gold ounces sold 477,879  501,627   952,338  1,000,512  Attributable(a) all-in sustaining cost per ounce sold on a by-product basis$1,751 $1,469  $1,704 $1,400  Attributable(a) all-in cost per ounce sold on a by-product basis$2,348 $1,918  $2,242 $1,789  Production cost of sales per equivalent ounce sold(e)$1,352 $1,080  $1,375 $1,062                   See pages 21 and 22 for details of the footnotes referenced within the table above. 

Attributable All-In Sustaining Cost and All-In Cost per Equivalent Ounce Sold

The Company also assesses its attributable all-in sustaining cost and all-in cost on a gold equivalent ounce basis. Under these non-GAAP financial measures and ratios, the Company’s production of silver is converted into gold equivalent ounces and credited to total production.

Attributable all-in sustaining cost and all-in cost per equivalent ounce sold are calculated by adjusting production cost of sales, as reported on the consolidated statements of operations, as follows:

        (expressed in millions of U.S. dollars, except ounces and costs per ounce)Three months ended Six months ended June 30, June 30,    2026  2025   2026  2025          Production cost of sales - as reported$674.7 $568.4  $1,365.2 $1,115.1  Less: non-controlling interest(b) production cost of sales (19.8) (22.5)  (39.7) (43.2) Attributable(a) production cost of sales$654.9 $545.9  $1,325.5 $1,071.9  Adjusting items on an attributable(a) basis:       General and administrative(f) 32.4  29.6   77.3  65.3   Other operating expense - sustaining(g) 4.8  0.9   5.0  1.1   Reclamation and remediation - sustaining(h) 23.5  22.4   46.6  44.7   Exploration and business development - sustaining(i) 15.7  15.3   31.8  27.8   Additions to property, plant and equipment - sustaining(j) 159.7  143.7   244.3  231.9   Lease payments - sustaining(k) 1.8  1.3   3.8  2.6  All-in Sustaining Cost - attributable(a)$892.8 $759.1  $1,734.3 $1,445.3  Adjusting items on an attributable(a) basis:       Other operating expense - non-sustaining(g) 13.9  19.1   22.4  35.3   Reclamation and remediation - non-sustaining(h) 1.8  2.3   3.9  4.6   Exploration and business development - non-sustaining(i) 23.2  45.5   44.9  74.9   Additions to property, plant and equipment - non-sustaining(j) 246.5  158.1   440.8  274.0   Lease payments - non-sustaining(k) 0.2  0.2   0.4  0.4  All-in Cost - attributable(a)$1,178.4 $984.3  $2,246.7 $1,834.5  Gold equivalent ounces sold 499,035  526,223   993,163  1,050,312  Less: non-controlling interest(b) gold equivalent ounces sold (8,795) (17,923)  (17,068) (35,448) Attributable(a) gold equivalent ounces sold 490,240  508,300   976,095  1,014,864  Attributable(a) all-in sustaining cost per equivalent ounce sold$1,821 $1,493  $1,777 $1,424  Attributable(a) all-in cost per equivalent ounce sold$2,404 $1,936  $2,302 $1,808  Production cost of sales per equivalent ounce sold(e)$1,352 $1,080  $1,375 $1,062                   See pages 21 and 22 for details of the footnotes referenced within the table above. 

Capital Expenditures and Attributable Capital Expenditures

Capital expenditures are classified as either sustaining capital expenditures or non-sustaining capital expenditures, depending on the nature of the expenditure. Sustaining capital expenditures typically represent capital expenditures at existing operations including capitalized exploration costs and capitalized development unless related to major projects, ongoing replacement of mine equipment and other capital facilities and other capital expenditures and is calculated as total additions to property, plant and equipment (as reported on the consolidated statements of cash flows), less non-sustaining capital expenditures. Non-sustaining capital expenditures represent capital expenditures for major projects, including major capital development projects at existing operations that are expected to materially benefit the operation, as well as enhancement capital for significant infrastructure improvements at existing operations. Management believes the distinction between sustaining capital expenditures and non-sustaining expenditures is a useful indicator of the purpose of capital expenditures and this distinction is an input into the calculation of attributable all-in sustaining costs per ounce and attributable all-in costs per ounce. The categorization of sustaining capital expenditures and non-sustaining capital expenditures is consistent with the definitions under the WGC all-in cost standard. Sustaining capital expenditures and non-sustaining capital expenditures are not defined under IFRS, however, the sum of these two measures total to additions to property, plant and equipment as disclosed under IFRS on the consolidated statements of cash flows.

Additions to property, plant and equipment per the consolidated statements of cash flows includes 100% of capital expenditures for Manh Choh. Attributable capital expenditures is a non-GAAP financial measure and includes Kinross' 70% share of capital expenditures for Manh Choh. Management believes this to be a useful indicator of Kinross’ cash resources utilized for capital expenditures.

The following table provides a reconciliation of the classification of capital expenditures for the periods presented:

          (expressed in millions of U.S. dollars)         Three months ended June 30, 2026Tasiast
(Mauritania)Paracatu
(Brazil)La Coipa
(Chile)Fort Knox(l)
(USA)Round
Mountain
(USA)Bald
Mountain
(USA)Total
USAOther(o)TotalSustaining capital expenditures$ 46.6$ 51.4$ 17.9$ 37.3 $ 6.9$ 4.0$ 48.2 $ 0.4$ 164.5 Non-sustaining capital expenditures 49.7 12.8 4.9 2.7  42.2 50.0 94.9  84.2 246.5 Additions to property, plant and equipment - per cash flow$ 96.3$ 64.2$ 22.8$ 40.0 $ 49.1$ 54.0$ 143.1 $ 84.6$ 411.0 Less: Non-controlling interest(b) - - - (4.8) - - (4.8) - (4.8)Attributable(a) capital expenditures$ 96.3$ 64.2$ 22.8$ 35.2 $ 49.1$ 54.0$ 138.3 $ 84.6$ 406.2           Three months ended June 30, 2025         Sustaining capital expenditures$23.1$38.4$25.0$43.0 $5.7$12.7$61.4 $0.1$148.0 Non-sustaining capital expenditures 66.6 - - -  27.1 27.7 54.8  36.7 158.1 Additions to property, plant and equipment - per cash flow$89.7$38.4$25.0$43.0 $32.8$40.4$116.2 $36.8$306.1 Less: Non-controlling interest(b) - - - (4.3) - - (4.3) - (4.3)Attributable(a) capital expenditures$89.7$38.4$25.0$38.7 $32.8$40.4$111.9 $36.8$301.8           (expressed in millions of U.S. dollars)         Six months ended June 30, 2026Tasiast
(Mauritania)Paracatu
(Brazil)La Coipa
(Chile)Fort Knox(l)
(USA)Round
Mountain
(USA)Bald
Mountain
(USA)Total
USAOther(o)TotalSustaining capital expenditures$57.4$73.6$37.8$61.4 $11.8$10.9$84.1 $0.5$253.4 Non-sustaining capital expenditures 98.9 16.4 6.7 2.7  91.2 82.8 176.7  142.1 440.8 Additions to property, plant and equipment - per cash flow$156.3$90.0$44.5$64.1 $103.0$93.7$260.8 $142.6$694.2 Less: Non-controlling interest(b) - - - (9.1) - - (9.1) - (9.1)Attributable(a) capital expenditures$156.3$90.0$44.5$55.0 $103.0$93.7$251.7 $142.6$685.1           Six months ended June 30, 2025         Sustaining capital expenditures$36.8$62.8$40.6$71.2 $8.5$19.6$99.3 $0.3$239.8 Non-sustaining capital expenditures 133.0 - - -  53.9 38.6 92.5  48.5 274.0 Additions to property, plant and equipment - per cash flow$169.8$62.8$40.6$71.2 $62.4$58.2$191.8 $48.8$513.8 Less: Non-controlling interest(b) - - - (7.9) - - (7.9) - (7.9)Attributable(a) capital expenditures$169.8$62.8$40.6$63.3 $62.4$58.2$183.9 $48.8$505.9  See pages 21 and 22 for details of the footnotes referenced within the tables above.

Endnotes

(a)“Attributable” measures and ratios include Kinross’ share of Manh Choh (70%) sales, costs, cash flows and capital expenditures.(b)“Non-controlling interest” represents the non-controlling interest portion in Manh Choh (30%) and other subsidiaries for which the Company’s interest is less than 100% for cash flow from operating activities, costs, sales and capital expenditures, as appropriate.(c)“Silver revenue” represents the portion of metal sales realized from the production of secondary or by-product metal (i.e. silver), which is produced as a by-product of the process used to produce gold and effectively reduces the cost of gold production.(d)“Average realized gold price per ounce” is defined as gold revenue divided by total gold ounces sold.(e)“Production cost of sales per equivalent ounce sold” is defined as production cost of sales divided by total gold equivalent ounces sold.(f)“General and administrative” expenses are as reported on the consolidated statements of operations, excluding certain impacts which the Company believes are not reflective of the Company’s underlying performance for the reporting period. General and administrative expenses are considered sustaining costs as they are required to be absorbed on a continuing basis for the effective operation and governance of the Company.(g)“Other operating expense – sustaining” is calculated as “Other operating expense” as reported on the consolidated statements of operations, less the non-controlling interest portion in Manh Choh (30%) and other subsidiaries for which the Company’s interest is less than 100% and other operating and reclamation and remediation expenses related to non-sustaining activities as well as other items not reflective of the underlying operating performance of the Company. Other operating expenses are classified as either sustaining or non-sustaining based on the type and location of the expenditure incurred. The majority of other operating expenses that are incurred at existing operations are considered costs necessary to sustain operations, and are therefore, classified as sustaining. Other operating expenses incurred at locations where there is no current operation or related to other non-sustaining activities are classified as non-sustaining.(h)“Reclamation and remediation – sustaining” is calculated as current period accretion related to reclamation and remediation obligations plus current period amortization of the corresponding reclamation and remediation assets, less the non-controlling interest portion in Manh Choh (30%) and other subsidiaries for which the Company’s interest is less than 100%, and is intended to reflect the periodic cost of reclamation and remediation for currently operating mines. Reclamation and remediation costs for development projects or closed mines are excluded from this amount and classified as non-sustaining.(i)“Exploration and business development – sustaining” is calculated as “Exploration and business development” expenses as reported on the consolidated statements of operations, less the non-controlling interest portion in Manh Choh (30%) and other subsidiaries for which the Company’s interest is less than 100% and non-sustaining exploration and business development expenses. Exploration expenses are classified as either sustaining or non-sustaining based on a determination of the type and location of the exploration expenditure. Exploration expenditures within the footprint of operating mines are considered costs required to sustain current operations and are therefore included in sustaining costs. Exploration expenditures focused on new ore bodies near existing mines (i.e. brownfield), new exploration projects (i.e. greenfield) or for other generative exploration activity not linked to existing mining operations are classified as non-sustaining. Business development expenses are classified as either sustaining or non-sustaining based on a determination of the type of expense and requirement for general or growth-related operations.(j)“Additions to property, plant and equipment – sustaining” and “non-sustaining” are as presented on pages 20 and 21 of this news release and include Kinross’ share of Manh Choh’s (70%) sustaining and non-sustaining capital expenditures.(k)“Lease payments – sustaining” represents the majority of lease payments as reported on the consolidated statements of cash flows and is made up of the principal and financing components of such cash payments, less the non-controlling interest portion in Manh Choh (30%) and other subsidiaries for which the Company’s interest is less than 100%, and non-sustaining lease payments. Lease payments for development projects or closed mines are classified as non-sustaining.(l)The Fort Knox segment is composed of Fort Knox and Manh Choh for all periods presented.(m)Attributable adjusted operating cash flow for the three and six months ended June 30, 2025 has been presented in accordance with the current period’s presentation.(n)“Impact of silver by-product” represents the costs allocated to the production of secondary or by-product metal (i.e. silver), which is produced as a by-product of the process used to produce gold.(o)Other includes corporate and other non-operating assets (including Great Bear, Curlew and Lobo-Marte).   Cautionary statement on forward-looking information 

All statements, other than statements of historical fact, contained or incorporated by reference in this news release including, but not limited to, any information as to the future financial or operating performance of Kinross, constitute “forward-looking information” or “forward-looking statements” within the meaning of certain securities laws, including the provisions of the Securities Act (Ontario) and the provisions for “safe harbor” under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release. Forward-looking statements contained in this news release, include, but are not limited to, those under the headings (or headings that include) “2026 second-quarter highlights”, “Return of capital to shareholders”, “CEO commentary”, and “Development projects”, as well as statements with respect to our guidance for production, cost guidance, including production costs of sales, all-in sustaining cost of sales, and capital expenditures; anticipated returns of capital to shareholders, including the declaration, payment, increase and sustainability of the Company’s dividends; the size, scope and execution of the proposed share buybacks and the anticipated timing thereof, including the Company’s statement targeting share buybacks and dividends for 2026 of 40% of free cash flow; identification of additional resources and reserves or the conversion of resources to reserves; the Company’s liquidity; the Company’s debt levels; the schedules budgets, and forecast economics for the Company’s development projects; budgets for and future plans for exploration, development and operation at the Company’s operations and projects, including the Great Bear and Lobo-Marte projects; planned timing for the submission of permits; potential mine life extensions at the Company’s operations; the Company’s balance sheet and liquidity outlook, as well as references to other possible events including, the future price of gold and silver, costs of production, operating costs; price inflation; capital expenditures, costs and timing of the development of projects and new deposits, estimates and the realization of such estimates (such as mineral or gold reserves and resources or mine life), success of exploration, development and mining, currency fluctuations, capital requirements, project studies, government regulation, permit applications, environmental risks and proceedings, and resolution of pending litigation. The words “advance”, “believe”, “continue”, “deliver”, “estimates” “expects”, “focus”, “forecast”, “guidance”, “looking ahead”, “next steps”, “on plan”, “on track”, “opportunities”, “plan”, “potential”, “priority”, “progress”, “target”, “upside”, or variations of or similar such words and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken, or will occur or result and similar such expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Kinross as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates, models and assumptions of Kinross referenced, contained or incorporated by reference in this news release, which may prove to be incorrect, include, but are not limited to, the various assumptions set forth herein and in our Management’s Discussion and Analysis (“MD&A”) for the year ended December 31, 2025, and the Annual Information Form dated March 26, 2026 as well as: (1) there being no significant disruptions affecting the operations of the Company, whether due to extreme weather events and other or related natural disasters, labour disruptions (including but not limited to strikes or workforce reductions), supply disruptions, power disruptions, damage to equipment, pit wall slides or otherwise; (2) permitting, development, operations and production from the Company’s operations and development projects being consistent with Kinross’ current expectations including, without limitation: the maintenance of existing permits and approvals and the timely receipt of all permits and authorizations necessary for construction and operations; water and power supply and continued operation of the tailings reprocessing facility at Paracatu; permitting of the Great Bear project (including the consultation process with Indigenous groups), permitting and development of the Lobo-Marte project; in each case in a manner consistent with the Company’s expectations; and the successful completion of exploration consistent with the Company’s expectations at the Company’s projects; (3) political regulatory and legal developments in any jurisdiction in which the Company operates being consistent with its current expectations including, without limitation, restrictions or penalties imposed, or actions taken, by any government, including but not limited to amendments to the mining laws and tailings facility regulations in Brazil, potential amendments to water laws and/or other water use restrictions and regulatory actions in Chile, dam safety regulations, potential amendments to minerals and mining laws and energy levies laws, new regulations relating to work permits, potential amendments to customs and mining laws (including but not limited to amendments to the VAT) and the potential application of the tax code in Mauritania, potential amendments to and enforcement of tax laws in Mauritania (including, but not limited to, the interpretation, implementation, application and enforcement of any such laws and amendments thereto), substantial changes to the federal and/or provincial regulatory and permitting regimes in Canada, third party legal challenges to existing permits, and the impact of any trade tariffs being consistent with Kinross’ current expectations; (4) the completion of studies and the results of those studies being consistent with Kinross’ current expectations; (5) the exchange rate between the Canadian dollar, Brazilian real, Chilean peso, Mauritanian ouguiya and the U.S. dollar being approximately consistent with current levels; (6) certain price assumptions for gold and silver which includes, as it relates to share repurchases, assumptions that prices for gold and silver remain approximately consistent with current levels; (7) prices for diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with the Company’s expectations; (8) attributable production and cost of sales forecasts for the Company meeting expectations; (9) the accuracy of the current mineral reserve and mineral resource estimates of the Company and Kinross’ analysis thereof being consistent with expectations (including but not limited to ore tonnage and ore grade estimates), future mineral resource and mineral reserve estimates being consistent with preliminary work undertaken by the Company, mine plans for the Company’s current and future mining operations, and the Company’s internal models; (10) labour and materials costs increasing on a basis consistent with Kinross’ current expectations; (11) the terms and conditions of the legal and fiscal stability agreements for Tasiast being interpreted and applied in a manner consistent with their intent and Kinross’ expectations and without material amendment or formal dispute (including without limitation the application of tax, customs and duties exemptions and royalties); (12) asset impairment potential; (13) the regulatory and legislative regime regarding mining, electricity production and transmission (including rules related to power tariffs) in Brazil being consistent with Kinross’ current expectations; (14) access to capital markets, including but not limited to maintaining our current credit ratings consistent with the Company’s current expectations; (15) potential direct or indirect operational impacts resulting from infectious diseases or pandemics; (16) changes in national and local government legislation or other government actions, including Ontario environmental regulations and the Canadian federal impact assessment regime; (17) litigation, regulatory proceedings and audits, and the potential ramifications thereof, being concluded in a manner consistent with the Company’s expectations (including without limitation litigation in Chile relating to the wetlands remediation plan or other environmental obligations arising therefrom); (18) the Company’s financial results, cash flows and future prospects being consistent with Company expectations in amounts sufficient to permit sustained dividend payments; (19) the impacts of potential geotechnical instability being consistent with the Company’s expectations; and (20) the impacts of groundwater inflows at the La Coipa pit being consistent with the Company’s expectations. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: the inaccuracy of any of the foregoing assumptions; fluctuations in the currency markets; fluctuations in the spot and forward price of gold or certain other commodities (such as fuel and electricity); price inflation of goods and services; changes in the discount rates applied to calculate the present value of net future cash flows based on country-specific real weighted average cost of capital; changes in the market valuations of peer group gold producers and the Company, and the resulting impact on market price to net asset value multiples; changes in various market variables, such as interest rates, foreign exchange rates, gold or silver prices and lease rates, or global fuel prices, that could impact the mark-to-market value of outstanding derivative instruments and ongoing payments/receipts under any financial obligations; risks arising from holding derivative instruments (such as credit risk, market liquidity risk and mark-to-market risk); changes in national and local government legislation, taxation (including but not limited to income tax, advance income tax, stamp tax, withholding tax, capital tax, tariffs, value-added or sales tax, capital outflow tax, capital gains tax, windfall or windfall profits tax, production royalties, excise tax, customs/import or export taxes/duties, asset taxes, asset transfer tax, property use or other real estate tax, together with any related fine, penalty, surcharge, or interest imposed in connection with such taxes), controls, tariffs, policies and regulations; the security of personnel and assets; political or economic developments in Canada, the United States, Chile, Brazil, Mauritania or other countries in which Kinross does business or may carry on business; business opportunities that may be presented to, or pursued by, us; our ability to successfully integrate acquisitions and complete divestitures; operating or technical difficulties in connection with mining, development or refining activities; employee relations; litigation or other claims against, or regulatory investigations and/or any enforcement actions, administrative orders or sanctions in respect of the Company (and/or its directors, officers, or employees) including, but not limited to, securities class action litigation in Canada and/or the United States, environmental litigation or regulatory proceedings or any investigations, enforcement actions and/or sanctions under any applicable anti-corruption, international sanctions and/or anti-money laundering laws and regulations in Canada, the United States or any other applicable jurisdiction; the speculative nature of gold exploration and development including, but not limited to, the risks of obtaining and maintaining necessary licenses and permits; diminishing quantities or grades of reserves; adverse changes in our credit ratings; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of gold exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, Kinross’ actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Kinross, including but not limited to resulting in an impairment charge on goodwill and/or assets. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. All of the forward-looking statements made in this news release are qualified by this cautionary statement and those made in our other filings with the securities regulators of Canada and the United States including, but not limited to, the cautionary statements made in the “Risk Analysis” section of our MD&A for the year ended December 31, 2025, and the “Risk Factors” set forth in the Company’s Annual Information Form dated March 26, 2026. These factors are not intended to represent a complete list of the factors that could affect Kinross. Kinross disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

Key Sensitivities

Approximately 70%-80% of the Company's costs are denominated in U.S. dollars.

A 10% change in foreign currency exchange rates would be expected to result in an approximate $30 impact on attributable production cost of sales per equivalent ounce sold1,14.

Specific to the Brazilian real, a 10% change in the exchange rate would be expected to result in an approximate $50 impact on Brazilian attributable production cost of sales per equivalent ounce sold1.

Specific to the Chilean peso, a 10% change in the exchange rate would be expected to result in an approximate $50 impact on Chilean attributable production cost of sales per equivalent ounce sold1.

A $10 per barrel change in the price of oil would be expected to result in an approximate $10 impact on attributable production cost of sales per equivalent ounce sold1.

A $100 change in the price of gold would be expected to result in an approximate $5 impact on attributable production cost of sales per equivalent ounce sold1 as a result of a change in royalties.

Other information

Where we say "we", "us", "our", the "Company", or "Kinross" in this news release, we mean Kinross Gold Corporation and/or one or more or all of its subsidiaries, as may be applicable.

The technical information about the Company’s mineral properties contained in this news release has been prepared under the supervision of Mr. Nicos Pfeiffer, an officer of the Company who is a “qualified person” within the meaning of National Instrument 43-101.

Source: Kinross Gold Corporation

______________________________________
1 Unless otherwise stated, production figures in this news release are on an attributable basis. “Attributable” includes Kinross’ 70% share of Manh Choh production, costs, cash flows and capital expenditures. Financial figures include 100% of Manh Choh results except when denoted as attributable. Attributable figures are non-GAAP financial measures and ratios. Refer to footnote 6.
2 “Production cost of sales per equivalent ounce sold” is defined as production cost of sales, as reported on the interim condensed consolidated statements of operations, divided by total gold equivalent ounces sold.
3 Operating cash flow figures in this release represent “Net cash flow provided from operating activities,” as reported on the interim condensed consolidated statements of cash flows.
4 “Margins” per equivalent ounce sold is defined as average realized gold price per ounce less production cost of sales per equivalent ounce sold.
5 Earnings, net earnings, and reported net earnings figures in this news release represent “Net earnings attributable to common shareholders,” as reported on the interim condensed consolidated statements of operations.   
6 These figures are non-GAAP financial measures and ratios, as applicable, and are defined and reconciled on pages 16 to 21 of this news release. Non-GAAP financial measures and ratios have no standardized meaning under International Financial Reporting Standards (“IFRS”) and therefore, may not be comparable to similar measures presented by other issuers. All-in sustaining cost per ounce sold on a by-product basis is equivalent to attributable all-in sustaining cost per ounce sold on a by-product basis for Lobo-Marte.
7 Net cash is calculated as cash and cash equivalents of $2,656.4 million less long-term debt of $738.8 million as reported on the Company’s interim condensed consolidated balance sheet as at June 30, 2026.
8 The NPV was calculated from the after-tax cash flow generated by the project, based on a discount rate of 5% and a valuation date of January 1, 2028.
9 “Average realized gold price per ounce” is defined as gold revenue divided by total gold ounces sold.
10 “Capital expenditures” is “Additions to property, plant and equipment” on the interim condensed consolidated statements of cash flows.
11 “Available credit” is defined as available credit under the Company’s credit facilities and is calculated in Section 6 Liquidity and Capital Resources of Kinross’ MD&A for the three and six months ended June 30, 2026.
12 “Total liquidity” is defined as the sum of cash and cash equivalents, as reported on the interim condensed consolidated balance sheets, and available credit under the Company’s credit facilities (as calculated in Section 6 Liquidity and Capital Resources of Kinross’ MD&A for the three and six months ended June 30, 2026).
13 The economic analysis of the projects were carried out using a discounted cash flow approach on an after-tax basis, based on long-term gold prices of $4,100/oz. and $3,500/oz. in USD. The IRR on total investment that is presented in the economic analysis was calculated assuming 100% equity financing.
14 Refers to all of the currencies in the countries where the Company has mining operations, fluctuating simultaneously by 10% in the same direction, either appreciating or depreciating, taking into consideration the impact of hedging and the weighting of each currency within our consolidated cost structure.

Kraft Heinz Co (NASDAQ:KHC, XETRA:KHNZ) is scheduled to report second quarter earnings before the market opens on August 5, with investors expected to focus less on the quarterly results and more on whether improving market share trends are translating into more durable demand.

UBS forecasts adjusted earnings per share of $0.52 for the quarter, one cent below the Visible Alpha and FactSet consensus estimate.

The firm expects another quarter of top-line pressure but believes the key question will be whether recent share gains support the company's goal of returning to top-line growth by fiscal 2027.

"While we expect another quarter of pressured topline performance from KHC, we believe the primary focus this quarter will center less on the reported results and more on whether improving share trends are beginning to translate into a more durable improvement in demand, such that the company remains on track to deliver topline growth by fiscal year 2027," UBS wrote.

The brokerage noted that Kraft Heinz shares have risen 6.7% since reporting Q1 earnings, outperforming both the Consumer Staples Select Sector SPDR Fund (XLP) and US food peers over the same period.

UBS expects management to reaffirm its fiscal 2026 guidance, which calls for a net sales decline of 1.5% to 3.5%, an adjusted operating income decline of 14% to 18%, and adjusted earnings per share of $1.98 to $2.10.

For the full year, the firm projects an organic sales decline of 1.7%, slightly better than the Street expectation of a 2.0% decline. It forecasts pricing growth of 0.4% and a 2.1% decline in volume and mix. UBS also expects adjusted EPS of $2.08 for the year, near the upper end of the company's guidance range and one cent above consensus.

For the second quarter, UBS expects organic sales to decline 3.7%, compared with the consensus estimate for a 3.6% decline, reflecting continued weak retail takeaway trends during the period.

The firm forecasts North America organic sales to fall 5%, while International Developed Markets are expected to decline 2.2%. Emerging Markets are projected to remain a source of growth, with organic sales increasing 3.5%.

On costs, UBS believes Kraft Heinz is relatively well positioned despite ongoing inflation concerns across the packaged food sector.

"From a cost perspective, while inflation remains an area of debate across packaged food, we believe KHC remains largely insulated given its FY26 outlook already contemplates ~4% inflation, with hedging and productivity expected to offset much of the pressure," UBS wrote.

UBS maintained a ‘Neutral’ rating and a $25 price target on the stock, which traded hands at about $28 on Wednesday, describing the investment case as balanced until the company demonstrates that improving market share can translate into sustained top-line growth.

"Valuation remains attractive, but until KHC can demonstrate that these changes can result in durable top-line growth, we expect the investment case to remain a 'show me' story and view the risk/reward as balanced," the firm wrote.

NEW YORK, July 29, 2026 (GLOBE NEWSWIRE) -- Teladoc Health, Inc. (NYSE: TDOC), the global leader in virtual care, today reported financial results for the three months ended June 30, 2026 (“Second Quarter 2026”). Unless otherwise noted, percentage and other changes are relative to the three months ended June 30, 2025 (“Second Quarter 2025”).

Highlights

Second Quarter 2026 revenue of $606.9 million, down 4% year-over-yearSecond Quarter 2026 net loss of $38.9 million, or $0.21 per shareSecond Quarter 2026 adjusted EBITDA of $65.7 million, down 5% year-over-yearIntegrated Care segment revenue of $394.3 million, up 1% year-over-year, and adjusted EBITDA margin of 16.5%BetterHelp segment revenue of $212.6 million, down 12% year-over-year, and adjusted EBITDA margin of 0.2%
“We continue to make progress on the priorities we believe are most important to the long-term success of Teladoc Health. Our second-quarter results were within our guidance ranges on a consolidated basis and reflected distinct dynamics across our two segments,” said Chuck Divita, Chief Executive Officer of Teladoc Health. “We delivered solid Integrated Care segment performance, with revenue growth and adjusted EBITDA margin above the midpoint of our guidance ranges and continued to advance new innovations designed to strengthen the value we provide to clients and members, including the launch of Teladoc One, our new connected care model for the U.S. market.”

“In the BetterHelp segment, insurance revenue came in near the high end of our expectations. However, pressure on cash pay revenue accelerated further in late May and into June, beyond the assumptions underlying our prior outlook. We saw stronger than anticipated demand for insurance covered services that outpaced available provider capacity, limiting our ability to convert a greater share of that demand into sessions and revenue to offset the cash pay decline. Given strong consumer preference for insurance, we accelerated the nationwide insurance rollout ahead of plan, and we are taking focused actions to further support the scaling of insurance.

We continue to expect 2026 insurance revenue within our previously communicated range, but we have lowered our BetterHelp segment revenue outlook to reflect updated assumptions for cash pay including prioritization of the growing insurance market. We are addressing BetterHelp’s near-term challenges with urgency and discipline and believe these actions will strengthen our ability to meet growing insurance demand and position the segment for more durable performance over time.”

Key Financial Data             (In thousands, except per share data, unaudited)         Three Months Ended     Six Months Ended   June 30,     June 30,    2026   2025  Change
  2026   2025  ChangeRevenue$606,927  $631,900  (4)% $1,220,772  $1,261,269  (3)%              Net loss$(38,908) $(32,660) (19)% $(102,745) $(125,672) 18 %Net loss per share$(0.21) $(0.19) (11)% $(0.57) $(0.72) 21 %              Adjusted EBITDA (1)$65,713  $69,311  (5)% $123,882  $127,404  (3)% See note (1) in the Notes section that follows.

Second Quarter 2026

Revenue decreased 4% to $606.9 million from $631.9 million in Second Quarter 2025. Access fees revenue decreased 9% to $474.2 million while other revenue increased 23% to $132.7 million. U.S. revenue decreased 6% to $487.4 million while International revenue increased 7% to $119.6 million.

Integrated Care segment revenue increased 1% to $394.3 million in Second Quarter 2026 while BetterHelp segment revenue decreased 12% to $212.6 million.

Net loss totaled $38.9 million, or $0.21 per share, for Second Quarter 2026, compared to $32.7 million, or $0.19 per share, for Second Quarter 2025. Results for Second Quarter 2026 included amortization of intangibles of $88.4 million, or $0.49 per share pre-tax, and stock-based compensation expense of $9.3 million, or $0.05 per share pre-tax.

Results for Second Quarter 2025 included amortization of intangibles of $88.7 million, or $0.50 per share pre-tax, and stock-based compensation expense of $22.3 million or $0.13 per share pre-tax. Net loss for Second Quarter 2025 also included restructuring costs related to severance costs and costs associated with office space reductions of $5.7 million, or $0.03 per share pre-tax. These items were partially offset by an acquisition related tax benefit of $9.7 million, or $0.06 per share.

Adjusted EBITDA(1) decreased 5% to $65.7 million, compared to $69.3 million for Second Quarter 2025. The Integrated Care segment adjusted EBITDA increase of $7.8 million was offset by a $11.4 million decrease of the BetterHelp segment adjusted EBITDA in Second Quarter 2026.

Six Months Ended June 30, 2026

Revenue decreased 3% to $1,220.8 million from $1,261.3 million in the first six months of 2025. Access fees revenue decreased 9% to $958.9 million while other revenue increased 24% to $261.9 million. U.S. revenue decreased 6% to $978.9 million while International revenue increased 12% to $241.9 million.

Integrated Care segment revenue increased 1% to $789.8 million in the first six months of 2026 while BetterHelp segment revenue decreased 10% to $431.0 million.

Net loss totaled $102.7 million, or $0.57 per share, for the first six months of 2026, compared to $125.7 million, or $0.72 per share, for the first six months of 2025. Results for the first six months of 2026 included amortization of intangibles of $178.3 million, or $0.99 per share pre-tax, and stock-based compensation expense of $23.9 million, or $0.13 per share pre-tax. Net loss for the first six months of 2026 also included restructuring costs of $12.9 million, or $0.07 per share pre-tax, primarily related to severance costs.

Results for the first six months of 2025 included a non-cash goodwill impairment charge of $59.1 million, or $0.34 per share pre-tax, amortization of intangibles of $173.0 million, or $0.99 per share pre-tax, and stock-based compensation expense of $47.5 million, or $0.27 per share pre-tax. Net loss for the first six months of 2025 also included restructuring costs related to severance costs and costs associated with office space reductions of $10.0 million, or $0.06 per share pre-tax. These items were partially offset by a discrete tax benefit of $20.1 million, or $0.11 per share, related to the completion of a research and development tax credit study and acquisition related tax benefits of $11.1 million, or $0.06 per share.

The non-cash goodwill impairment charge recorded in the first six months of 2025 was the result of the fair value of the Integrated Care segment being less than its carrying value at the time of the acquisition of Catapult Health, LLC.

Adjusted EBITDA(1) decreased 3% to $123.9 million, compared to $127.4 million for the first six months of 2025. The Integrated Care segment adjusted EBITDA increase of $13.7 million was offset by a $17.2 million decrease of the BetterHelp segment adjusted EBITDA in the first six months of 2026.

Capex and Cash Flow

Cash flow from operations was $64.7 million in Second Quarter 2026, compared to $91.4 million in Second Quarter 2025, and was $74.2 million in the first six months of 2026, compared to $107.4 million in the first six months of 2025. Capital expenditures and capitalized software development costs (together, “Capex”) were $28.9 million in Second Quarter 2026, compared to $30.2 million in Second Quarter 2025, and were $64.7 million in the first six months of 2026, compared to $61.8 million in the first six months of 2025. Free cash flow was $35.7 million in Second Quarter 2026, compared to $61.2 million in Second Quarter 2025, and was $9.4 million in the first six months of 2026, compared to $45.5 million in the first six months of 2025.

Financial Outlook

The outlook provided below is based on current market conditions and expectations and what we know today.

For the full year of 2026, we expect:  Full Year 2026 Outlook RangeRevenue$2,362 - $2,447 millionAdjusted EBITDA$271 - $303 millionNet loss per share($1.00) - ($0.75)Free Cash Flow$130 - $170 millionU.S. Integrated Care Members (2)98.5 - 100.5 million  Integrated Care Revenue growth percentage (year-over-year)0.8% - 2.4%Adjusted EBITDA margin15.6% - 16.4%  BetterHelp Revenue growth percentage (year-over-year)(19.0%) - (12.7%)Adjusted EBITDA margin3.0% - 4.6%  For the third quarter of 2026, we expect:  3Q 2026 Outlook RangeRevenue$569 - $609 millionAdjusted EBITDA$62 - $74 millionNet loss per share($0.30) - ($0.20)U.S. Integrated Care Members (2)99.0 - 100.5 million  Integrated Care Revenue growth percentage (year-over-year)0.0% - 3.0%Adjusted EBITDA margin15.7% - 17.2%  BetterHelp Revenue growth percentage (year-over-year)(24.2%) - (12.3%)Adjusted EBITDA margin0.5% - 2.5%  See note (2) in the Notes section that follows.

Earnings Conference Call

The Second Quarter 2026 earnings conference call and webcast will be held Wednesday, July 29, 2026 at 5:00 p.m. E.T. The conference call can be accessed by dialing 833-461-5787 for U.S. participants and using the conference ID # 478 236 923. For international participants, please visit the following link for global dial-in numbers, using the same conference ID # 478 236 923: https://help.events.q4inc.com/eahc/international-dial-in-numbers. A live audio webcast will also be available online at http://ir.teladoc.com/news-and-events/events-and-presentations/. A replay of the call will be available via webcast for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.

About Teladoc Health

Teladoc Health is the global leader in virtual care. The company is delivering and orchestrating care across patients, care providers, platforms, and partners — transforming virtual care into a catalyst for how better health happens. Through our relationships with health plans, employers, providers, health systems and consumers, we are enabling more access, driving better outcomes, extending provider capacity and lowering costs. Learn more at www.teladochealth.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” “may,” “should,” “will” and similar references to future periods. Examples of forward-looking statements include, among others, the information under the caption “Financial Outlook” and statements we make regarding future financial or operating results, future numbers of members, BetterHelp paying users or clients, litigation outcomes, regulatory developments, market developments, new products and growth strategies, initiatives to improve our efficiency and competitiveness, and the effects of any of the foregoing on our future results of operations or financial condition.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Important factors that have in the past and/or may in the future cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) changes in laws and regulations applicable to our business model; (ii) changes in market conditions and receptivity to our services and offerings, including our ability to effectively compete; (iii) results of litigation or regulatory actions; (iv) the loss of one or more key clients or the loss of a significant number of members or BetterHelp paying users; (v) a decrease in revenue from users who pay directly out-of-pocket without offsetting growth in insurance-covered services in our BetterHelp segment; (vi) changes in valuations or useful lives of our assets; (vii) changes to our abilities to recruit and retain qualified providers into our network; (viii) the impact of and risk related to impairment losses with respect to goodwill or other assets; (ix) the success of our initiatives to improve our efficiency and competitiveness; (x) imposed and threatened tariffs by the United States and its trading partners, and any resulting disruptions or inefficiencies in our supply chain; (xi) the rate and magnitude of declines in BetterHelp cash-pay users and revenue; (xii) the extent to which insurance availability changes users’ payment choices; (xiii) available provider capacity including on a state and payer specific basis; (xiv) the timing, cost and effectiveness of provider recruitment, credentialing, enrollment, activation, compensation and retention; (xv) the performance of insurance-specific eligibility, matching, booking, scheduling, utilization, session-duration, claims and collection workflows; (xvi) the effectiveness and revenue consequences of changes in advertising and marketing spending; (xvii) the effects of BetterHelp’s reduced near term emphasis and investment outside the United States; (xviii) the cost, timing and effectiveness of platform and provider-capacity investments; (xix) the margin effects of the insurance mix; and (xx) potential impairment of BetterHelp goodwill. For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to, our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as filed with the SEC.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise, except as required by law.

TELADOC HEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data, unaudited)
  Three Months Ended
June 30, Six Months Ended
June 30,  2026   2025   2026   2025 Revenue$606,927  $631,900  $1,220,772  $1,261,269 Costs and expenses:       Cost of revenue (exclusive of depreciation and amortization, which are shown separately below) 190,837   190,537   388,363   387,366 Advertising and marketing 143,397   167,547   294,924   335,732 Sales 49,391   49,951   100,667   98,644 Technology and development 62,861   68,784   130,726   138,742 General and administrative 104,029   108,114   206,122   220,888 Goodwill impairment —   —   —   59,138 Acquisition, integration, and transformation costs 1,690   2,658   2,754   4,846 Restructuring costs 904   5,692   12,879   10,039 Amortization of intangible assets 88,442   88,664   178,268   172,968 Depreciation of property and equipment 2,468   4,338   4,929   7,902 Total costs and expenses 644,019   686,285   1,319,632   1,436,265 Loss from operations (37,092)  (54,385)  (98,860)  (174,996)Interest income (6,481)  (10,064)  (12,971)  (22,738)Interest expense 5,109   4,473   10,477   10,238 Other expense (income), net 2,191   (8,371)  2,387   (10,806)Loss before provision for income taxes (37,911)  (40,423)  (98,753)  (151,690)Provision for income taxes 997   (7,763)  3,992   (26,018)Net loss$(38,908) $(32,660) $(102,745) $(125,672)        Net loss per share, basic and diluted$(0.21) $(0.19) $(0.57) $(0.72)        Weighted-average shares used to compute basic and diluted net loss per share 181,026,004   175,917,380   180,079,395   175,040,625   Stock-based Compensation Summary

Compensation expense for stock-based awards was classified as follows (in thousands, unaudited):

 Three Months Ended
June 30, Six Months Ended
June 30, 2026
 2025
 2026
 2025
Cost of revenue (exclusive of depreciation and amortization, which are shown separately)$124 $506 $471 $1,079Advertising and marketing 426  1,302  1,286  2,805Sales 1,460  3,594  3,537  7,853Technology and development 1,735  4,247  4,462  10,032General and administrative 5,556  12,695  14,156  25,738Total stock-based compensation expense (3)$9,301 $22,344 $23,912 $47,507  See note (3) in the Notes section that follows.

Revenues

 Three Months Ended   Six Months Ended   June 30,   June 30,  (In thousands, unaudited)2026
 2025
 Change 2026
 2025
 ChangeRevenue by Type           Access Fees$474,215 $523,703 (9)% $958,870 $1,049,439 (9)%Other 132,712  108,197 23 %  261,902  211,830 24 %Total Revenue$606,927 $631,900 (4)% $1,220,772 $1,261,269 (3)%            Revenue by Geography           U.S.$487,360 $519,689 (6)% $978,865 $1,044,659 (6)%International 119,567  112,211 7 %  241,907  216,610 12 %Total Revenue$606,927 $631,900 (4)% $1,220,772 $1,261,269 (3)%  Summary Operating Metrics

Consolidated

 Three Months Ended   Six Months Ended   June 30,   June 30,  (In millions)2026 2025 Change 2026 2025 ChangeTotal Visits4.1 4.1 (2) % 8.4 8.6 (2) %  Integrated Care

 As of June 30,  (In millions)2026 2025 ChangeU.S. Integrated Care Members (2)100.3 102.4 (2)%Chronic Care Program Enrollment (4)1.272 1.117 14 %   Three Months Ended   Six Months Ended   June 30,   June 30,   2026
 2025
 Change 2026
 2025
 ChangeAverage Monthly Revenue
Per U.S. Integrated Care Member (5)$1.31 $1.27 3 %
 $1.31 $1.27 3 %
  BetterHelp

 Average for   Average for   Three Months Ended   Six Months Ended   June 30,   June 30,  (In millions)2026 2025 Change 2026 2025 ChangeBetterHelp Paying Users (6)0.346 0.388 (11) % 0.353 0.393 (10) %  See notes (2), (4), (5), and (6) in the Notes section that follows.

Operating Results by Segment (see note (7) in the Notes section that follows)

The following table presents operating results by reportable segment for the periods indicated:

 Three Months Ended   Six Months Ended   June 30,   June 30,  (In thousands, unaudited) 2026   2025  Change  2026   2025  ChangeIntegrated Care           Revenue$394,305  $391,510  1 % $789,750  $780,978  1 %Adjusted EBITDA$65,242  $57,450  14 % $121,519  $107,829  13 %Adjusted EBITDA margin % 16.5%  14.7%    15.4%  13.8%              BetterHelp           Consumer and Other$190,852  $238,262  (20)% $396,315  $478,163  (17)%Insurance Covered Services 21,770   2,128  N/M  34,707   2,128  N/MTotal Revenue$212,622  $240,390  (12)% $431,022  $480,291  (10)%Adjusted EBITDA$471  $11,861  (96)% $2,363  $19,575  (88)%Adjusted EBITDA margin % 0.2%  4.9%    0.5%  4.1%    N/M - not meaningful

TELADOC HEALTH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, unaudited)
  Six Months Ended
June 30,  2026   2025 Cash flows from operating activities:   Net loss$(102,745) $(125,672)Adjustments to reconcile net loss to net cash flows from operating activities:   Goodwill impairment —   59,138 Amortization of intangible assets 178,268   172,968 Stock-based compensation 23,912   47,507 Depreciation of property and equipment 4,929   7,902 Amortization of right-of-use assets 3,394   4,190 Provision for allowances for doubtful accounts 807   377 Deferred income taxes (1,673)  (34,072)Other, net 2,812   2,049 Changes in operating assets and liabilities:   Accounts receivable (28,647)  (8,497)Prepaid expenses and other current assets (17,071)  (16,434)Inventory 8,628   861 Other assets 2,337   7,616 Accounts payable (9,656)  19,278 Accrued expenses and other current liabilities 44,676   (5,149)Accrued compensation (31,246)  (9,545)Deferred revenue (44)  (6,084)Operating lease liabilities (4,586)  (5,170)Other liabilities 83   (3,912)Net cash provided by operating activities 74,178   107,351 Cash flows from investing activities:   Capital expenditures (2,588)  (3,994)Capitalized software development costs (62,152)  (57,824)Proceeds from the sale of investment —   740 Acquisitions accounted for as business combinations, net of cash acquired —   (65,302)Asset acquisition resulting in net intangible assets (12,675)  (29,569)Payments for investments (700)  (27,075)Other, net 3   60 Net cash used in investing activities (78,112)  (182,964)Cash flows from financing activities:   Proceeds from the exercise of stock options 33   81 Proceeds from employee stock purchase plan 1,241   1,384 Repayment of convertible senior notes —   (550,629)Other, net (2,848)  — Net cash used in financing activities (1,574)  (549,164)Net decrease in cash and cash equivalents (5,508)  (624,777)Effect of foreign currency exchange rate changes (1,228)  6,071 Cash and cash equivalents at beginning of the period 781,084   1,298,327 Cash and cash equivalents at end of the period$774,348  $679,621   TELADOC HEALTH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data, unaudited)  June 30,
2026 December 31,
2025ASSETS   Current assets:   Cash and cash equivalents$774,348  $781,084 Accounts receivable, net of allowance for doubtful accounts of $3,628 and $4,033 at June 30, 2026 and December 31, 2025, respectively 221,015   192,826 Inventories 28,823   38,203 Prepaid expenses and other current assets 124,175   107,016 Total current assets 1,148,361   1,119,129 Property and equipment, net 24,690   26,972 Goodwill 283,190   283,190 Intangible assets, net 1,175,669   1,297,087 Operating lease—right-of-use assets 22,718   26,119 Other assets 103,997   105,803 Total assets$2,758,625  $2,858,300 LIABILITIES AND STOCKHOLDERS’ EQUITY   Current liabilities:   Accounts payable$37,496  $47,967 Accrued expenses and other current liabilities 226,550   198,208 Accrued compensation 60,172   96,258 Deferred revenue, current 60,812   62,305 Convertible senior notes, net—current 996,700   — Total current liabilities 1,381,730   404,738 Operating lease liabilities, net of current portion 29,537   34,204 Deferred revenue, net of current portion 9,669   9,139 Deferred taxes, net 26,881   28,945 Convertible senior notes, net—non-current —   994,925 Other liabilities 700   643 Total liabilities 1,448,517   1,472,594 Commitments and contingencies   Stockholders’ equity:   Common stock, $0.001 par value; 300,000,000 shares authorized; 181,649,591 shares and 178,315,400 shares issued and outstanding as of June 30, 2026 and December 31, 2025 respectively 182   178 Additional paid-in capital 17,876,827   17,850,478 Accumulated deficit (16,532,967)  (16,430,222)Accumulated other comprehensive loss (33,934)  (34,728)Total stockholders’ equity 1,310,108   1,385,706 Total liabilities and stockholders’ equity$2,758,625  $2,858,300   Non-GAAP Financial Measures:

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we use certain non-GAAP financial measures to clarify and enhance an understanding of past performance, which include adjusted EBITDA and free cash flow. We believe that the presentation of these financial measures enhances an investor’s understanding of our financial performance and are commonly used by investors to evaluate our performance and that of our competitors. We further believe that these financial measures are useful to assess our operating performance and financial and business trends from period-to-period by excluding certain items that we believe are not representative of our core business, and that free cash flow reflects an additional way of viewing our liquidity that, when viewed together with GAAP results, provides management, investors, and other users of our financial information with a more complete understanding of factors and trends affecting our cash flows. We use these non-GAAP financial measures for business planning purposes and in measuring our performance relative to that of our competitors. We utilize adjusted EBITDA as a key measure of our performance.

Adjusted EBITDA consists of net loss before provision for income taxes; other expense (income), net; interest income; interest expense; depreciation of property and equipment; amortization of intangible assets; restructuring costs; acquisition, integration, and transformation costs; goodwill impairments; and stock-based compensation.

Free cash flow is net cash provided by operating activities less capital expenditures and capitalized software development costs.

Our use of these non-GAAP terms may vary from that of others in our industry, and other companies may calculate such measures differently than we do, limiting their usefulness as comparative measures.

Non-GAAP measures have important limitations as analytical tools and you should not consider them in isolation, and they should not be considered as an alternative to net loss before provision for income taxes, net loss, net loss per share, net cash from operating activities or any other measures derived in accordance with GAAP. Some of these limitations are:

adjusted EBITDA eliminates the impact of the provision for income taxes on our results of operations, and does not reflect other expense (income), net, interest income, or interest expense;adjusted EBITDA does not reflect restructuring costs. Restructuring costs may include certain lease impairment costs, certain losses related to early lease terminations, and severance;adjusted EBITDA does not reflect significant acquisition, integration, and transformation costs. Acquisition, integration, and transformation costs include investment banking, financing, legal, accounting, consultancy, integration, fair value changes related to contingent consideration, and certain other transaction costs related to mergers and acquisitions. It also includes costs related to certain business transformation initiatives focused on integrating and optimizing various operations and systems, including upgrading our enterprise resource planning system. These transformation cost adjustments made to our results do not represent normal, recurring, operating expenses necessary to operate the business but, rather, incremental costs incurred in connection with our acquisition and integration activities;adjusted EBITDA does not reflect goodwill impairment charges; andadjusted EBITDA does not reflect the significant non-cash stock-based compensation expense which should be viewed as a component of recurring operating costs. In addition, although amortization of intangible assets and depreciation of property and equipment are non-cash charges, the assets being amortized and depreciated will often have to be replaced in the future, and adjusted EBITDA does not reflect any expenditures for such replacements.

We compensate for these limitations by using these non-GAAP measures along with other comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance. Such GAAP measurements include net loss, net loss per share, net cash from operating activities, and other performance measures.

In evaluating these financial measures, you should be aware that in the future we may incur expenses similar to those eliminated in this presentation. Our presentation of these non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items.

The following is a reconciliation of net loss, the most directly comparable GAAP financial measure, to adjusted EBITDA:

Reconciliation of GAAP Net Loss to Adjusted EBITDA
(In thousands, unaudited)
          Outlook in millions (8) Three Months Ended
June 30, Six Months Ended
June 30, Second Quarter Full Year  2026   2025   2026   2025  2026 2026Net loss$(38,908) $(32,660) $(102,745) $(125,672) $(55) - (36) $(181) - (136)Add:           Provision for income taxes 997   (7,763)  3,992   (26,018)    Other expense (income), net 2,191   (8,371)  2,387   (10,806)    Interest expense 5,109   4,473   10,477   10,238     Interest income (6,481)  (10,064)  (12,971)  (22,738)    Depreciation of property and equipment 2,468   4,338   4,929   7,902     Amortization of intangible assets 88,442   88,664   178,268   172,968     Restructuring costs 904   5,692   12,879   10,039     Acquisition, integration, and transformation costs 1,690   2,658   2,754   4,846     Goodwill impairment —   —   —   59,138     Stock-based compensation 9,301   22,344   23,912   47,507     Total Adjustments 104,621   101,971   226,627   253,076  98 - 129 407 - 484Consolidated Adjusted EBITDA$65,713  $69,311  $123,882  $127,404  $62 - 74 $271 - 303            Segment Adjusted EBITDA           Integrated Care$65,242  $57,450  $121,519  $107,829     BetterHelp 471   11,861   2,363   19,575     Consolidated Adjusted EBITDA$65,713  $69,311  $123,882  $127,404       See note (8) in the Notes section that follows.

The following is a reconciliation of net cash provided by operating activities, the most directly comparable GAAP financial measure, to free cash flow:

Reconciliation of GAAP Net Cash Provided by Operating Activities to Free Cash Flow
(In thousands, unaudited)
  Three Months Ended Six Months Ended Outlook (9) June 30, June 30, Full Year  2026   2025   2026   2025  2026 (in millions)Net cash provided by operating activities$64,662  $91,432  $74,178  $107,351  $260 - 290Capital expenditures (928)  (1,268)  (2,588)  (3,994)  Capitalized software development costs (27,990)  (28,965)  (62,152)  (57,824)  Capex (28,918)  (30,233)  (64,740)  (61,818) (130) - (120)Free Cash Flow$35,744  $61,199  $9,438  $45,533  $130 - 170  See note (9) in the Notes section that follows.

Notes:

A reconciliation of each non-GAAP measure to the most comparable measure under GAAP has been provided in this press release in the accompanying tables. An explanation of these non-GAAP measures is also included under the heading “Non-GAAP Financial Measures.”U.S. Integrated Care Members represent the number of unique individuals at the end of the applicable period who have access to our suite of integrated care services in the U.S. under paid access fee and/or visit-based arrangements.Excluding the amount capitalized related to software development projects.Chronic Care Program Enrollment represents the total number of enrollees across our suite of chronic care programs at the end of the applicable period. Average monthly revenue per U.S. Integrated Care member is calculated by dividing the total revenue generated from the Integrated Care segment by the average number of U.S. Integrated Care Members (see note 2) during the applicable period. BetterHelp Paying Users represent the average number of global monthly paying users of our BetterHelp therapy and psychiatry services during the applicable period, including both those who pay directly out-of-pocket and those who utilize their insurance coverage.We have two segments: Integrated Care and BetterHelp. The Integrated Care segment includes a suite of global virtual medical services including general medical, expert medical services, specialty medical, chronic condition management, mental health, and enabling technologies and enterprise telehealth solutions for hospitals and health systems. The BetterHelp segment includes virtual therapy and other wellness services provided on a global basis which are predominantly marketed and sold on a direct-to-consumer basis, including both those who pay directly out-of-pocket and those who utilize their insurance coverage. Within the BetterHelp segment, Consumer and Other primarily includes revenue from BetterHelp Paying Users that pay for services directly out-of-pocket while Insurance Covered Services reflects revenue from BetterHelp Paying Users that utilize insurance coverage to pay for services, which includes any copayments.We have not provided a full line-item reconciliation for net loss to adjusted EBITDA outlook because we do not provide outlook on the individual reconciling items between net loss and adjusted EBITDA. This is due to the uncertainty as to timing, and the potential variability, of the individual reconciling items such as impairments, stock-based compensation and the related tax impact, provision for income taxes, acquisition, integration, and transformation costs, and restructuring costs, the effect of which may be significant. Accordingly, a full line-item reconciliation of the GAAP measure to the corresponding non-GAAP financial measure outlook is not available without unreasonable effort.We have not provided a line-item reconciliation for free cash flow to net cash from operating activities for this future period because we believe such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and we are unable to reasonably predict certain items contained in the GAAP measure without unreasonable effort. Investors:
Michael Minchak
617-444-9612
[email protected]

Media:
Lou Serio
202-569-9715
[email protected]

CompaniesJuly 29 (Reuters) - Align Technology (ALGN.O), opens new tab said on Wednesday it will add three new ​independent directors to its board and launch ‌a review of its operations, following talks with activist investor Elliott Investment Management.

Shares of the company ​were down 4.5% in extended trading.

Learn about the latest breakthroughs in AI and tech with the Reuters Artificial Intelligencer newsletter. Sign up here.

Align ​has hired a leading global consulting ⁠firm to conduct a comprehensive review of ​its operations and business model. The company ​said the review will focus on improving revenue growth and boosting profit margins.

The changes follow discussions ​with Elliott, one of Align's largest shareholders.

Marc ​Steinberg, a partner at Elliott, in a statement called ‌Align ⁠a market leader with significant growth potential. "We believe the board enhancements and other actions announced today are important steps toward ​delivering on ​this opportunity," ⁠he said.

The medical device company, best known for making Invisalign ​clear teeth aligners, said it raised ​its ⁠share buyback target for the year to between $400 million and $500 million, up from the ⁠earlier ​target of $200 million, citing ​confidence in its long-term value.

Reporting by Padmanabhan Ananthan in Bengaluru; ​Editing by Shailesh Kuber and Sahal Muhammed

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

Exceeds high end of second quarter guidance on revenue and profitability
Raises 2026 revenue guidance to 19% year over year growth

Highlights

Revenue grew 26% year over year to $2.05 billion Product revenue grew 52% year over year to $773 millionBillings grew 33% year over year to $2.37 billion1GAAP operating margin of 34%Non-GAAP operating margin of 38%1GAAP earnings per share grew 44% year over year to $0.82Non-GAAP earnings per share grew 41% year over year to $0.901Operating cash flow of $1.04 billionFree cash flow of $966 million1 SUNNYVALE, Calif., July 29, 2026 (GLOBE NEWSWIRE) -- Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the second quarter ended June 30, 2026.

“We are very pleased with our excellent second quarter results, which reflect the differentiated value of our innovation in the AI Era,” said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. “Our results reflect that customers value Fortinet’s unique ‘SASE Firewall’, with leading firewall, SD-WAN and SASE functionality integrated together on our single FortiOS operating system and powered by our purpose-built FortiASIC, offering customers flexible deployment in a sovereign form factor, on-prem and in the cloud.”

Recent Business Highlights

Announced a strategic collaboration with Intel to develop Fortinet Security Processor 6 (SP6), combining Fortinet’s proprietary, purpose-built security processor expertise with Intel’s advanced design, development, packaging, and manufacturing capabilities to accelerate SP6 development while strengthening the resilience and diversity of Fortinet’s global supply chain.Launched the FortiGate 1200G series with FortiSASE Outpost, combining local enforcement and cloud-delivered security to address customers’ evolving sovereignty, performance, and AI infrastructure requirements. The convergence of firewall and SASE technologies creates a new “SASE Firewall” market built for the realities of today’s hybrid world.Launched FortiSOC, a new cloud-delivered SOC platform that brings together six core security operations functions into a single AI SOC experience designed to simplify and scale modern security operations.Expanded FortiEndpoint converging multiple endpoint security innovations into one agent to help security teams safely enable AI adoption, strengthen data security, improve risk visibility, and simplify operations.Partnered with Anthropic on Project Glasswing (Mythos), OpenAI on Project Daybreak (GPT 5.5 Cyber), and NVIDIA as a founding member of its recently announced Open Secure AI Alliance for AI Safety and Security.Moody’s Ratings upgraded Fortinet’s senior unsecured notes rating to A3 from Baa1 and its senior unsecured shelf rating to (P)A3 from (P)Baa1, the highest rating of any public cybersecurity company. Guidance

For the third quarter of 2026, Fortinet currently expects:

Revenue in the range of $2.010 billion to $2.100 billionBillings in the range of $2.250 billion to $2.350 billionNon-GAAP gross margin in the range of 79.0% to 81.0%Non-GAAP operating margin in the range of 35.0% to 37.0%Diluted non-GAAP net income per share in the range of $0.83 to $0.87, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 741 million to 745 million. For the fiscal year 2026, Fortinet currently expects:

Revenue in the range of $8.020 billion to $8.180 billionService revenue in the range of $5.180 billion to $5.220 billionBillings in the range of $9.350 billion to $9.550 billionNon-GAAP gross margin in the range of 79.0% to 81.0%Non-GAAP operating margin in the range of 35.0% to 37.0%Diluted non-GAAP net income per share in the range of $3.41 to $3.47, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 741 million to 745 million. These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets, gain on intellectual property matters and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

Conference Call Details

Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet’s website at https://investor.fortinet.com and a replay will be archived and accessible at https://investor.fortinet.com/events-and-presentations.

Third Quarter 2026 Conference Participation Schedule:

Rosenblatt Technology Summit: The Age of AI
August 17, 2026 Stifel Tech Executive Summit
August 24, 2026 Deutsche Bank Technology Conference
August 27, 2026 Goldman Sachs Communacopia + Technology Conference
September 8, 2026 Kepler Cheuvreux Autumn Conference
September 10, 2026 Members of Fortinet’s management team are expected to present at these conferences and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s website. To access the most updated information, pre-register and listen to the webcast of each event, please visit the Investor Presentation & Events page of Fortinet’s website at https://investor.fortinet.com/events-and-presentations. The schedule is subject to change.

About Fortinet (www.fortinet.com)

Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet’s solutions, which are among the most deployed, most patented and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (“CERTs”), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications related to future growth and market share gains, our strategy going forward, and guidance and expectations around future financial results, including guidance and expectations for the third quarter and full year 2026, and any statements regarding our market opportunity and market size, and business momentum. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by economic challenges, a possible economic downturn or recession and the effects of inflation or stagflation, changing interest rates or reduced information technology spending; supply chain challenges; negative impacts from global conflicts and their related macroeconomic effects; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; sales execution risks, including risks in connection with the timing and completion of large strategic deals; uncertainties around continued success in sales growth and market share gains; uncertainties in market opportunities and the market size; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive, including advances in artificial intelligence; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by competition and pricing pressure; excess product inventory for any reason, including those caused by the effects of inflation and changing interest rates in certain geographies and the war in Ukraine, tensions between China and Taiwan or conflicts in the Middle East; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts such as the war in Ukraine, tensions between China and Taiwan or conflicts in the Middle East, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies, including the impact of any future shutdowns of the U.S. government; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (“SEC”), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.

Use of Non-GAAP Financial Measures

We believe that the presentation of non-GAAP financial information provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. For further information regarding why we believe that these non-GAAP measures provide useful information to investors, the specific manner in which management uses these measures, and some of the limitations associated with the use of these measures, please refer to the “Explanation of Non-GAAP Financial Measures” section of this press release.

FORTINET, INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Unaudited, in millions)
  June 30,
2026 December 31,
2025ASSETS   CURRENT ASSETS:   Cash and cash equivalents$2,934.9  $2,495.3 Short-term investments 1,134.7   1,087.2 Accounts receivable—net 1,455.6   1,691.2 Inventory 426.3   399.5 Prepaid expenses and other current assets 256.8   227.0 Total current assets 6,208.3   5,900.2 LONG-TERM INVESTMENTS 399.1   339.7 PROPERTY AND EQUIPMENT—NET 1,699.5   1,619.0 DEFERRED CONTRACT COSTS 785.1   735.5 DEFERRED TAX ASSETS 1,319.4   1,314.9 GOODWILL AND OTHER INTANGIBLE ASSETS—NET 334.5   354.7 OTHER ASSETS 113.3   125.2 TOTAL ASSETS$10,859.2  $10,389.2 LIABILITIES AND STOCKHOLDERS’ EQUITY   CURRENT LIABILITIES:   Accounts payable$282.5  $230.8 Accrued liabilities 393.7   354.6 Accrued payroll and compensation 322.8   312.9 Current portion of long-term debt —   499.7 Deferred revenue 3,841.8   3,636.0 Total current liabilities 4,840.8   5,034.0 DEFERRED REVENUE 3,833.9   3,479.8 LONG-TERM DEBT 496.9   496.6 OTHER LIABILITIES 136.5   141.3 Total liabilities 9,308.1   9,151.7 COMMITMENTS AND CONTINGENCIES   STOCKHOLDERS’ EQUITY:   Common stock 0.7   0.7 Additional paid-in capital 1,895.9   1,770.1 Accumulated other comprehensive loss (28.8)  (25.4)Accumulated deficit (316.7)  (507.9)Total stockholders’ equity 1,551.1   1,237.5 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$10,859.2  $10,389.2          FORTINET, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in millions, except per share amounts)
  Three Months Ended Six Months Ended June 30,
2026 June 30,
2025 June 30,
2026 June 30,
2025REVENUE:       Product$773.0  $508.9  $1,418.1  $968.0 Service 1,274.9   1,121.1   2,479.4   2,201.7 Total revenue 2,047.9   1,630.0   3,897.5   3,169.7 COST OF REVENUE:       Product 233.8   165.9   442.1   315.8 Service 170.9   149.0   327.1   292.2 Total cost of revenue 404.7   314.9   769.2   608.0 GROSS PROFIT:       Product 539.2   343.0   976.0   652.2 Service 1,104.0   972.1   2,152.3   1,909.5 Total gross profit 1,643.2   1,315.1   3,128.3   2,561.7 OPERATING EXPENSES:       Research and development 225.0   209.5   439.0   408.1 Sales and marketing 669.1   592.0   1,305.4   1,134.7 General and administrative 61.1   56.9   117.3   114.7 Gain on intellectual property matters (1.3)  (1.3)  (2.7)  (7.6)Total operating expenses 953.9   857.1   1,859.0   1,649.9 OPERATING INCOME 689.3   458.0   1,269.3   911.8 INTEREST INCOME 33.2   45.0   66.1   89.3 INTEREST EXPENSE (3.2)  (4.6)  (7.4)  (9.5)OTHER INCOME—NET 0.9   18.9   48.8   45.0 INCOME BEFORE INCOME TAXES AND GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS 720.2   517.3   1,376.8   1,036.6 PROVISION FOR INCOME TAXES 115.0   77.1   237.0   173.6 GAIN (LOSS) FROM EQUITY METHOD INVESTMENTS 1.1   (0.1)  1.0   10.5 NET INCOME$606.3  $440.1  $1,140.8  $873.5 Net income per share:       Basic$0.83  $0.57  $1.55  $1.14 Diluted$0.82  $0.57  $1.54  $1.13 Weighted-average shares outstanding:       Basic 733.1   765.5   735.9   766.9 Diluted 739.9   772.7   741.3   774.8                  FORTINET, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in millions)
  Six Months Ended June 30,
2026 June 30,
2025CASH FLOWS FROM OPERATING ACTIVITIES:   Net income$1,140.8  $873.5 Adjustments to reconcile net income to net cash provided by operating activities:   Stock-based compensation 151.8   135.2 Amortization of deferred contract costs 190.9   160.0 Depreciation and amortization 81.2   74.1 Amortization of investment discounts (9.3)  (19.4)Other (47.7)  (44.8)Changes in operating assets and liabilities, net of impact of business combinations:   Accounts receivable—net 235.1   262.7 Inventory (38.0)  (79.6)Prepaid expenses and other current assets (0.5)  (32.1)Deferred contract costs (240.5)  (202.5)Deferred tax assets (3.6)  (75.3)Other assets (9.0)  (11.7)Accounts payable 49.7   46.8 Accrued liabilities 54.5   (9.7)Accrued payroll and compensation 10.0   22.9 Deferred revenue 559.9   204.8 Other liabilities (4.6)  10.3 Net cash provided by operating activities 2,120.7   1,315.2 CASH FLOWS FROM INVESTING ACTIVITIES:   Purchases of investments (756.0)  (976.5)Sales of investments 118.4   5.7 Maturities of investments 587.5   869.6 Purchases of property and equipment (148.6)  (234.3)Payments made in connection with business combinations, net of cash acquired —   (41.6)Other 8.4   0.1 Net cash used in investing activities (190.3)  (377.0)CASH FLOWS FROM FINANCING ACTIVITIES:   Repurchase and retirement of common stock (972.8)  (401.1)Repayment of senior notes (500.0)  — Proceeds from issuance of common stock 62.3   31.3 Taxes paid related to net share settlement of equity awards (59.1)  (77.0)Other (21.2)  (0.1)Net cash used in financing activities (1,490.8)  (446.9)EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS —   1.3 NET INCREASE IN CASH AND CASH EQUIVALENTS 439.6   492.6 CASH AND CASH EQUIVALENTS—Beginning of period 2,495.3   2,875.9 CASH AND CASH EQUIVALENTS—End of period$2,934.9  $3,368.5          Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
(Unaudited, in millions, except per share amounts)
 Reconciliation of GAAP to non-GAAP gross profit, gross margin, operating income, operating margin, net income and diluted net income per share
  Three Months Ended June 30,
2026 June 30,
2025Revenue$2,047.9  $1,630.0     Reconciliation of non-GAAP gross profit:   GAAP gross profit$1,643.2  $1,315.1 GAAP gross margin 80.2%  80.7%Add back:   Stock‐based compensation 8.7   7.5 Amortization of acquired intangible assets 5.8   7.3 Non‐GAAP gross profit$1,657.7  $1,329.9 Non‐GAAP gross margin 80.9%  81.6%    Reconciliation of non-GAAP operating income:   GAAP operating income$689.3  $458.0 GAAP operating margin 33.7%  28.1%Add back:   Stock‐based compensation 80.8   69.9 Amortization of acquired intangible assets 9.9   13.2 Gain on intellectual property matters (1.3)  (1.3)Non‐GAAP operating income$778.7  $539.8 Non‐GAAP operating margin 38.0%  33.1%    Reconciliation of non-GAAP net income:   GAAP net income$606.3  $440.1 Add back:   Stock‐based compensation 80.8   69.9 Amortization of acquired intangible assets 9.9   13.2 Gain on intellectual property matters (1.3)  (1.3)Tax adjustment(a) (30.7)  (30.8)Non-GAAP net income$665.0  $491.1     Reconciliation of non-GAAP net income per share, diluted   GAAP net income per share, diluted$0.82  $0.57 Add back:   Non-GAAP adjustments to net income per share 0.08   0.07 Non-GAAP net income per share, diluted$0.90  $0.64     Shares used in diluted net income per share calculations 739.9   772.7          (a) Non-GAAP financial information is adjusted to an effective tax rate of 18% in each period for the three months ended June 30, 2026 and 2025, on a non-GAAP basis, which differs from the GAAP effective tax rate.

Reconciliation of net cash provided by operating activities to adjusted free cash flow

 Three Months Ended June 30,
2026 June 30,
2025Net cash provided by operating activities$1,043.6  $451.9 Less: Purchases of property and equipment (78.0)  (167.8)Free cash flow$965.6  $284.1 Add: Real estate related purchases 30.3   143.8 Adjusted free cash flow$995.9  $427.9 Free cash flow margin 47.2%  17.4%Adjusted free cash flow margin 48.6%  26.3%Net cash used in investing activities$(184.6) $(266.2)Net cash used in financing activities$(147.9) $(414.2)         Reconciliation of total revenue to total billings

 Three Months Ended June 30,
2026 June 30,
2025Total revenue$2,047.9 $1,630.0 Add: Change in deferred revenue 324.2  149.2 Less: Deferred revenue balance acquired in business acquisitions —  (0.8)Total billings$2,372.1 $1,778.4         1 A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Explanation of Non-GAAP Financial Measures”.

Explanation of Non-GAAP Financial Measures

We have provided in this release financial information that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). These non-GAAP financial and liquidity measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.

Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) during the period. We consider billings to be a useful metric for management and investors because billings drive current and future revenue as well as cash flows. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings are impacted by the term of security subscription and support agreements and do not provide an indication as to the timing of revenue being recognized from these service contracts. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.

Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment. Free cash flow margin is defined as free cash flow divided by GAAP revenue. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure.

Adjusted free cash flow (non-GAAP). We define adjusted free cash flow as free cash flow plus cash payments associated with real estate related purchases. Adjusted free cash flow margin is defined as adjusted free cash flow divided by GAAP revenue.

Non-GAAP gross profit and gross margin. We define non-GAAP gross profit as gross profit plus stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit divided by GAAP revenue.

Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation and amortization of acquired intangible assets, less gain on intellectual property matters and, when applicable, other significant non-recurring items in a given quarter. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue.

We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business gross profit, gross margin and operating results over multiple periods. There are a number of limitations related to the use of non-GAAP financial measurements instead of the measurements calculated in accordance with GAAP. First, these non-GAAP financial measures exclude the items noted above. Second, the components of the costs and gains that we exclude from our calculation of non-GAAP measures may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures and evaluating non-GAAP operating income together with these measures calculated in accordance with GAAP.

Non-GAAP net income and diluted net income per share. We define non-GAAP net income as net income plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income and diluted net income per share calculated in accordance with GAAP.

Copyright © 2026 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiCore, FortiMail, FortiSandbox, FortiADC, FortiAgent, FortiAI, FortiAIGate, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAppSec, FortiAuthenticator, FortiBranchSASE, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCART, FortiCASB, FortiCentral, FortiConnect, FortiController, FortiConverter, FortiDAST, FortiDATA, FortiDB, FortiDevice, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevice, FortiDevSec, FortiDLP, FortiEdge, FortiEDR, FortiEndpoint, FortiExplorer, FortiExtender, FortiFirewall, FortiFlex, FortiFone, FortiGSLB, FortiGuest, FortiHSM, FortiHypervisor, FortiIdentity, FortiInsight, FortiIsolator, FortiLink, FortiMonitor, FortiNAC, FortiNDR, FortiPAM, FortiPhish, FortiPoint, FortiPoints, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiSAT, FortiSEC, FortiSIEM, FortiSMS, FortiSOAR, FortiSOC, FortiSRA, FortiSwitch, FortiTelemetry, FortiTester, FortiTIP, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM, FortiXDR, Lacework FortiCNAPP, Linksys, the Linksys logo, Linksys Cognitive, Intelligent Mesh, Velop, Max-Stream, WRT and SECURITY FABRIC. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

FTNT-F

Investor Contact: Media Contact:   Anthony Luscri Stephanie LiraFortinet, Inc. Fortinet, Inc.408-235-7700 [email protected] [email protected]

Shares of Carvana fell drastically during after-hours trading Wednesday after the company reported full-year guidance that failed to meet some of Wall Street's expectations for the auto retailer.

Carvana's stock fell by more than 20% shortly after the company reported its second-quarter results and guiding for earnings of between $2.7 billion and $3 billion this year. The stock recovered some of those losses, but was still trading down roughly 15% before the company's earnings call with analysts, which was set for 5:30 p.m. ET.

The guidance was lower than analyst expectations, which included forecasts of $3 billion to $3.2 billion from Deutsche Bank and $4.45 billion from Morgan Stanley.

The guidance means the company expects a relatively flat second half of the year compared with the first six months, with between $1.3 billion and $1.6 billion in adjusted earnings during the second half of this year. Such results would easily top Carvana's record $2.2 billion in adjusted earnings from 2025.

The new guidance follows the company reporting $1.4 billion in adjusted earnings before interest, taxes, depreciation and amortization during the first half of this year, including a record $769 million during the second quarter.

Carvana's second-quarter results included net income of $513 million, up $205 million from a year earlier; revenue of $7.38 billion compared to analyst estimates compiled by LSEG of $6.91 billion; and a 38% increase in vehicle sales to 197,325 units from April through June.

The company did not break out its sales of used versus new vehicles, which Carvana has been expanding into through Stellantis franchised dealerships.

Carvana said it expects a sequential increase in retail units sold in the third quarter compared to the second quarter, which the company said marked its 10th straight quarter of being "the fastest-growing and most profitable automotive retailer - achieving both by large margins."

"Q2 2026 was Carvana's 10th consecutive quarter of industry-leading growth and profitability, and it was made possible by the foundations we laid in the 10 years prior," Carvana CEO Ernie Garcia said in a release. "We built an experience customers love, our model gets better as we get bigger, and our execution is the key driver of our progress from here."

Garcia in a quarterly letter to shareholders said the company remains on track to selling 3 million cars per year and achieving a 13.5% adjusted EBITDA margin by 2030 to 2035.

The company's adjusted margin during the second quarter was 10.4%, down 2 percentage points from a year earlier as it pushes its expansion efforts.

"We have only 2% market share of used retail and 1.5% market share of all automotive retail. Our runway is huge," Garcia said in the investor note.

Chipotle Mexican Grill on Wednesday raised its same-store sales growth forecast for the year after topping analysts' quarterly earnings and revenue expectations.

The restaurant company is now projecting that its same-store sales will increase by a low single digit percentage in 2026, higher than its previous outlook of flat same-store sales for the full year.

After a shaky 2025, Chipotle is successfully luring customers back — even with spiking gas prices and other higher costs pressuring dining budgets.

"We're seeing encouraging progress because we're focused on the right growth drivers—bringing meaningful menu innovation to our guests, deepening engagement through Chipotle Rewards, elevating hospitality in every restaurant, and expanding opportunities to serve more group occasions," CEO Scott Boatwright said in a statement.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

Earnings per share: 33 cents adjusted vs. 32 cents expectedRevenue: $3.35 billion vs. $3.33 billion expected The company's stock climbed about 6% in extended trading.

Chipotle reported second-quarter net income of $403.5 million, or 32 cents per share, down from $436.1 million, or 32 cents per share, a year earlier. Excluding impairment and restructuring costs and other items, the company earned 33 cents per share.

Revenue climbed 9.3% to $3.35 billion.

Same-store sales rose 2.2%, lifted by a 1% increase in traffic to restaurants. Total check size inched up 1.2% compared with the year-ago period.

During the quarter, Chipotle opened 100 new locations and one international restaurant operated by a partner.

, /PRNewswire/ -- ACRES Commercial Realty Corp. (NYSE: ACR) ("ACR" or the "Company"), a real estate investment trust that is primarily focused on originating, holding and managing commercial real estate mortgage loans and equity investments in commercial real estate property through direct ownership and joint ventures, today reported results for the quarter ended June 30, 2026. ACR's GAAP net loss allocable to common shares was $12.5 million or $(1.87) per share-diluted, for the quarter ended June 30, 2026.

"The ACRES team continues to be proactive in managing our investments. Our pipeline for new loan opportunities is healthy, and we will selectively add quality assets and sponsors to our portfolio," said ACRES Commercial Realty Corp. President & CEO Mark Fogel. "The team has been working diligently on the previously announced internalization, which we anticipate closing in short order with the goal of enhancing shareholder value."

ACR issued a full, detailed presentation of its results for the quarter ended June 30, 2026 that can be viewed at www.acresreit.com.

Earnings Call Details

ACR will host a live conference call on July 30, 2026 at 10:00 a.m. Eastern Time to discuss its second quarter 2026 operating results. The conference call can be accessed by dialing 1-800-274-8461 (U.S. domestic) or 1-203-518-9814 (International), Conference ID ACRES or from the investor relations section of the Company's website at www.acresreit.com.

For those unable to listen to the live conference call, a replay will be available on the Company's website and telephonically through August 13, 2026 by dialing 1-844-512-2921 (U.S. domestic) or 1-412-317-6671 (International), with the passcode 11161827.

About ACRES Commercial Realty Corp.

ACRES Commercial Realty Corp. is a real estate investment trust that is primarily focused on originating, holding and managing commercial real estate mortgage loans and equity investments in commercial real estate properties through direct ownership and joint ventures. The Company is externally managed by ACRES Capital, LLC, a subsidiary of ACRES Capital Corp., a private commercial real estate lender exclusively dedicated to nationwide middle market commercial real estate lending with a focus on multifamily, student housing, hospitality, industrial and office property in top U.S. markets. For more information, please visit the Company's website at www.acresreit.com or contact investor relations at [email protected].

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "continue," "expect," "intend," "anticipate," "estimate," "believe," "look forward" or other similar words or terms. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. Factors that can affect future results are discussed in the documents filed by the Company from time to time with the Securities and Exchange Commission, including, without limitation, factors impacting whether we will be able to maintain our sources of liquidity and whether we will be able to identify sufficient suitable investments to increase our originations. The Company undertakes no obligation to update or revise any forward-looking statement to reflect new or changing information or events after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

SOURCE ACRES Commercial Realty Corp.

, /PRNewswire/ -- Antero Midstream Corporation (NYSE: AM) ("Antero Midstream" or the "Company") today announced its second quarter 2026 financial and operating results.  The relevant consolidated financial statements are included in Antero Midstream's Quarterly Report on Form 10-Q for the three months ended June 30, 2026.

Highlights:

Gathering and compression volumes increased by 19% and 17%, respectively, compared to the prior year quarter Net Income was $114 million, or $0.24 per diluted share, an 8% per share decrease compared to the prior year quarter Adjusted Net Income was $131 million, or $0.27 per diluted share, a 7% per share decrease compared to the prior year quarter (non-GAAP measure) Adjusted EBITDA was $289 million, a 2% increase compared to the prior year quarter (non-GAAP measure) Capital expenditures were $47 million Adjusted Free Cash Flow after dividends was $80 million (non-GAAP measure) Commenced construction on the Company's first intrastate regional pipeline ("East Side Express") Received $371 million in damages and interest from Veolia in July and called $650 million of senior notes due 2028 at par Michael Kennedy, CEO and President of Antero Midstream said, "During the quarter, Antero Midstream gathered over 4.1 Bcf/d of production, which was a 19% increase year-over-year and a new company record. Our water integration projects remain on track, which we expect to drive high-single digit EBITDA growth in 2027."

Mr. Kennedy further added, "In addition, during the quarter we commenced initial construction of our first intrastate regional pipeline, the "East Side Express", which will enhance regional connectivity within our operating areas. This pipeline positions Antero Midstream for future dry gas growth in West Virginia with decades of underlying inventory to capture growing regional demand. This east-west bi-directional pipeline represents our first regional pipeline and adds significant optionality for future intrastate pipeline projects that provide an integrated midstream solution connecting low-cost supply to demand centers."

Justin Agnew, CFO of Antero Midstream, said "The second quarter marked our twelfth consecutive quarter of generating Free Cash Flow after dividends, highlighting the consistency of operations over the last three years. Looking ahead, we expect an increase in volumes across both the gathering and water businesses to drive EBITDA growth in the back half of the year in line with our full year guidance range."

Mr. Agnew further added, "In July, Antero Midstream received approximately $371 million of proceeds from Veolia, which allowed us to reduce absolute debt and be below our 3-times leverage target ahead of expectations. After calling the $650 million of senior notes due 2028 at par, Antero Midstream has over $600 million of liquidity and no near-term maturities. This provides us with significant liquidity and balance sheet capacity to pursue additional growth opportunities and further return of capital to shareholders."

For a discussion of the non-GAAP financial measures, including Adjusted EBITDA, Adjusted Net Income, Leverage, and Adjusted Free Cash Flow after dividends please see "Non-GAAP Financial Measures and Definitions."

Clearwater Lawsuit Update

On June 23, 2026 the Colorado Supreme Court affirmed that Antero Midstream had prevailed on its claims against Veolia relating to the Clearwater Facility. On July 24, 2026 Antero Midstream received approximately $371 million in damages and interest. These proceeds and borrowings under the revolving credit facility are being used to call the $650 million of senior unsecured notes due 2028 at par.

Share Repurchases

During the second quarter of 2026, Antero Midstream repurchased 0.4 million shares for approximately $8 million.  Antero Midstream had approximately $310 million of remaining capacity under its share repurchase program as of June 30, 2026.

Strategic and Operating Updates

During the quarter, Antero Midstream began its multiyear investment in the East Side Express, the Company's first dry gas regional connectivity expansion project. This project will expand dry gas deliveries to several different long haul and regional pipelines and will enhance optionality to local markets in order to capture growing regional demand around the Company's area of operations. 

Antero Midstream connected 26 wells to its gathering system and serviced 21 wells with its fresh water delivery system during the quarter.  Capital expenditures were $47 million during the second quarter of 2026.  The Company invested $33 million in gathering and compression and $14 million in water infrastructure.

Second Quarter 2026 Financial Results

Gathering and compression volumes increased by 19% and 17%, respectively, compared to the prior year quarter. Fresh water delivery volumes averaged 82 MBbl/d during the quarter, a 16% decrease compared to the second quarter of 2025.  Processing volumes from the processing and fractionation joint venture (the "Joint Venture") averaged 1.6 Bcf/d and Joint Venture fractionation volumes averaged 40 MBbl/d, both in line with the prior year quarter.  Processing and fractionation capacity were both 100% utilized during the quarter. 

For the three months ended June 30, 2026, revenues were $327 million, comprised of $272 million from the Gathering and Processing segment and $79 million from the Water Handling segment, net of $23 million of amortization of customer relationships.  Water Handling revenues include $45 million from other water handling and high rate water transfer services.

Direct operating expenses were $37 million for the Gathering and Processing segment and $48 million for the Water Handling segment for a total of $85 million.  Water Handling operating expenses include $40 million from other water handling and high rate water transfer services.  General and administrative expenses excluding equity-based compensation were $12 million during the second quarter of 2026.  Total operating expenses during the second quarter of 2026 included $11 million of equity-based compensation expense and $37 million of depreciation expense.

Net Income was $114 million, or $0.24 per diluted share.  Net Income adjusted for amortization of customer relationships, impairment of property and equipment, transaction expense and other, net of tax effects of reconciling items, or Adjusted Net Income, was $131 million.  Adjusted Net Income was $0.27 per diluted share, a 7% per share decrease compared to the prior year quarter.

The following table reconciles Net Income to Adjusted Net Income (in thousands):

Three Months Ended

June 30,

2025

2026

Net Income

$

124,513

113,515

Amortization of customer relationships

17,668

22,802

Impairment of property and equipment

—

133

Transaction expense

—

273

Other(1)

—

409

Tax effect of reconciling items(2)

(4,564)

(6,112)

Adjusted Net Income

$

137,617

131,020

(1)

Other represents loss on settlement of asset retirement obligations.

(2)

The statutory tax rate for each of the three months ended June 30, 2025 and 2026 was approximately 26%.

Adjusted EBITDA was $289 million, a 2% increase compared to the prior year quarter.  Interest expense was $56 million, a 16% increase compared to the prior year quarter driven by financing for the HG Energy acquisition.  Capital expenditures were $47 million during the second quarter of 2026.  Adjusted Free Cash Flow before dividends was $186 million and Adjusted Free Cash Flow after dividends was $80 million.

The following table reconciles Net Income to Adjusted EBITDA and Adjusted Free Cash Flow before and after dividends (in thousands):

Three Months Ended

June 30,

2025

2026

Net Income

$

124,513

113,515

Interest expense, net

47,962

55,680

Income tax expense

43,985

40,966

Depreciation expense

33,364

37,378

Amortization of customer relationships

17,668

22,802

Equity-based compensation

11,407

10,828

Equity in earnings of unconsolidated affiliates

(30,016)

(28,525)

Distributions from unconsolidated affiliates

35,355

35,280

Impairment of property and equipment

—

133

Transaction expense

—

273

Other operating expense, net(1)

50

454

Adjusted EBITDA

$

284,288

288,784

Interest expense, net

(47,962)

(55,680)

Capital expenditures (accrual-based)

(44,847)

(46,678)

  Current income tax expense

(1,908)

—

Adjusted Free Cash Flow before dividends

$

189,571

186,426

Dividends declared (accrual-based)

(107,678)

(106,801)

Adjusted Free Cash Flow after dividends

$

81,893

79,625

(1)

Other operating expense, net represents accretion of asset retirement obligations and loss on settlement of asset retirement obligations.

The following table reconciles net cash provided by operating activities to Adjusted Free Cash Flow before and after dividends (in thousands):

Three Months Ended

June 30,

2025

2026

Net cash provided by operating activities

$

265,183

254,249

Amortization of deferred financing costs

(1,314)

(1,539)

Settlement of asset retirement obligations

48

40

Transaction expense

—

273

Changes in working capital

(29,499)

(19,919)

Capital expenditures (accrual-based)

(44,847)

(46,678)

Adjusted Free Cash Flow before dividends

$

189,571

186,426

Dividends declared (accrual-based)

(107,678)

(106,801)

Adjusted Free Cash Flow after dividends

$

81,893

79,625

Conference Call

A conference call is scheduled on Thursday, July 30, 2026 at 10:00 am MT to discuss the financial and operational results.  A brief Q&A session for security analysts will immediately follow the discussion of the results.  To participate in the call, dial in at 877-407-9126 (U.S.), or +1 201-493-6751 (International) and reference "Antero Midstream."  A telephone replay of the call will be available until Thursday, August 6, 2026 at 10:00 am MT at 877-660-6853 (U.S.) or +1 201-612-7415 (International) using the conference ID: 13758948. To access the live webcast and view the related earnings conference call presentation, visit Antero Midstream's website at www.anteromidstream.com.  The webcast will be archived for replay until Thursday, August 6, 2026 at 10:00 am MT.

Presentation

An updated presentation will be posted to the Company's website before the conference call.  The presentation can be found at www.anteromidstream.com on the homepage.  Information on the Company's website does not constitute a portion of, and is not incorporated by reference into this press release.

Non-GAAP Financial Measures and Definitions

Antero Midstream uses certain non-GAAP financial measures.  Antero Midstream defines Adjusted Net Income as Net Income adjusted for certain items.  Antero Midstream uses Adjusted Net Income to assess the operating performance of its assets.  Antero Midstream defines Adjusted EBITDA as Net Income adjusted for certain items.

Antero Midstream uses Adjusted EBITDA to assess:

the financial performance of Antero Midstream's assets, without regard to financing methods, capital structure or historical cost basis; its operating performance and return on capital as compared to other publicly traded companies in the midstream energy sector, without regard to financing or capital structure; and the viability of acquisitions and other capital expenditure projects. Antero Midstream defines Adjusted Free Cash Flow before dividends as Adjusted EBITDA less net interest expense, accrual-based capital expenditures, and current income tax expense.  Capital expenditures include additions to gathering systems and facilities, additions to water handling systems, and investments in unconsolidated affiliates.  Capital expenditures exclude acquisitions and Adjusted Free Cash Flow excludes transaction expense related to acquisitions. Adjusted Free Cash Flow after dividends is defined as Adjusted Free Cash Flow before dividends less accrual-based dividends declared for the quarter.  Antero Midstream uses Adjusted Free Cash Flow before and after dividends as a performance metric to compare the cash generating performance of Antero Midstream from period to period.

Adjusted EBITDA, Adjusted Net Income, and Adjusted Free Cash Flow before and after dividends are non-GAAP financial measures.  The GAAP measure most directly comparable to these measures is Net Income.  Such non-GAAP financial measures should not be considered as alternatives to the GAAP measures of Net Income and cash flows provided by (used in) operating activities.  The presentations of such measures are not made in accordance with GAAP and have important limitations as analytical tools because they include some, but not all, items that affect Net Income and cash flows provided by (used in) operating activities.  You should not consider any or all such measures in isolation or as a substitute for analyses of results as reported under GAAP.  Antero Midstream's definitions of such measures may not be comparable to similarly titled measures of other companies.

The following table reconciles cash paid for capital expenditures and accrued capital expenditures during the period (in thousands):

Three Months Ended

June 30,

2025

2026

Capital expenditures (as reported on a cash basis)

$

40,064

52,743

Change in accrued capital costs

4,783

(6,065)

Capital expenditures (accrual basis)

$

44,847

46,678

Antero Midstream defines Net Debt as consolidated total debt, excluding unamortized debt premiums and debt issuance costs, less cash, cash equivalents and restricted cash.  Antero Midstream views Net Debt as an important indicator in evaluating Antero Midstream's financial leverage.  Antero Midstream defines Leverage as Net Debt divided by Adjusted EBITDA for the last twelve months.  The GAAP measure most directly comparable to Net Debt is total debt, excluding unamortized debt premiums and debt issuance costs.

The following table reconciles consolidated total debt to Net Debt as used in this release (in thousands):

June 30, 2026

Bank credit facility

$

341,900

5.75% senior notes due 2028

650,000

5.375% senior notes due 2029

750,000

6.625% senior notes due 2032

600,000

5.75% senior notes due 2033

650,000

5.75% senior notes due 2034

600,000

Consolidated total debt

$

3,591,900

Less: Cash, cash equivalents and restricted cash

—

Consolidated net debt

$

3,591,900

Antero Midstream Corporation is a Delaware corporation that owns, operates and develops midstream gathering, compression, processing and fractionation assets located in the Appalachian Basin, as well as integrated water assets that primarily service Antero Resources Corporation's (NYSE: AR) ("Antero Resources") properties.

This release includes "forward-looking statements." Words such as "may," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "plan," "estimate," "anticipate," "believe," "project," "budget," "potential," or "continue," "goal," or "target" and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words.  Such forward-looking statements are subject to a number of risks and uncertainties, many of which are not under Antero Midstream's control.  All statements, except for statements of historical fact, made in this release regarding activities, events or developments Antero Midstream expects, believes or anticipates will or may occur in the future, such as statements regarding our strategy, future operations, financial position, estimated revenues and losses, Antero Resources' and Antero Midstream's respective ability to integrate acquired assets and achieve the intended operational, financial and strategic benefits from any such transactions, projected costs, prospects, plans and objectives of management, Antero Resources' expected production and development plan, natural gas, NGLs and oil prices, Antero Midstream's ability to realize the anticipated benefits of its investments in unconsolidated affiliates, Antero Midstream's ability to execute its share repurchase and dividend program, Antero Midstream's ability to execute its business strategy, impacts of geopolitical events, including the conflicts in Ukraine, Venezuela and in the Middle East, and world health events, information regarding long-term financial and operating outlooks for Antero Midstream and Antero Resources, information regarding Antero Resources' expected future growth and its ability to meet its drilling and development plan and the participation level of Antero Resources' drilling partner, the impact on demand for Antero Midstream's services as a result of incremental production by Antero Resources, the impact of recently enacted legislation, and expectations regarding the amount and timing of litigation awards are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  These forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events.  All forward-looking statements speak only as of the date of this release.  Although Antero Midstream believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved.  Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.  Except as required by law, Antero Midstream expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements.

Antero Midstream cautions you that these forward-looking statements are subject to all of the risks and uncertainties incidental to our business, most of which are difficult to predict and many of which are beyond Antero Midstream's control.  These risks include, but are not limited to, risks associated with the successful integration and future performance of acquired assets and operations, commodity price volatility, inflation, supply chain or other disruptions, environmental risks, Antero Resources' drilling and completion and other operating risks, regulatory changes or changes in law, the uncertainty inherent in projecting Antero Resources' future rates of production, cash flows and access to capital, the timing of development expenditures, impacts of geopolitical events, including the conflicts in Ukraine, Venezuela and the Middle East, and world health events, cybersecurity risks, the state of markets for, and availability of, verified quality carbon offsets and the other risks described under the heading "Risk Factors" in Antero Midstream's Annual Report on Form 10-K for the year ended December 31, 2025 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

This release is not a notice of redemption of the 2028 notes. The redemption is being made solely pursuant to the Notice of Redemption, dated July 24, 2026, relating to the 2028 notes.

ANTERO MIDSTREAM CORPORATION
Condensed Consolidated Balance Sheets
 (In thousands, except per share amounts)

(Unaudited)

December 31,

June 30,

2025

2026

Assets

Current assets:

Cash and cash equivalents

$

180,435

—

Restricted cash

82,500

—

Accounts receivable–Antero Resources

106,771

135,798

Accounts receivable–third party

993

889

Income tax receivable

1,896

1,896

Current assets held for sale

4,600

—

Other current assets

2,669

2,363

Total current assets

379,864

140,946

Long-term assets:

Property and equipment, net

3,454,572

3,942,843

Investments in unconsolidated affiliates

585,778

574,215

Customer relationships

1,074,087

1,652,223

Operating leases right-of-use assets

—

43,066

Assets held for sale

379,036

—

Other assets, net

10,779

10,522

Total assets

$

5,884,116

6,363,815

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable–Antero Resources

$

5,366

5,716

Accounts payable–third party

10,368

12,988

Accrued liabilities

91,527

134,626

Short-term lease liabilities

—

12,786

Current liabilities held for sale

2,297

—

Other current liabilities

1,924

1,235

Total current liabilities

111,482

167,351

Long-term liabilities:

Long-term debt

3,222,530

3,566,179

Deferred income tax liability, net

562,996

641,600

Long-term lease liabilities

—

30,580

Liabilities held for sale

3,021

—

Other

12,046

12,731

Total liabilities

3,912,075

4,418,441

Stockholders' equity:

Preferred stock, $0.01 par value: 100,000 authorized as of December 31, 2025 and June 30,
     2026

Series A non-voting perpetual preferred stock; 12 designated and 10 issued and
      outstanding as of December 31, 2025 and June 30, 2026

—

—

Common stock, $0.01 par value; 2,000,000 authorized; 474,060 and 474,657 issued and
     outstanding as of December 31, 2025 and June 30, 2026, respectively

4,741

4,747

Additional paid-in capital

1,952,524

1,833,934

Retained earnings

14,776

106,693

Total stockholders' equity

1,972,041

1,945,374

Total liabilities and stockholders' equity

$

5,884,116

6,363,815

ANTERO MIDSTREAM CORPORATION
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)
(In thousands, except per share amounts)

Three Months Ended June30,

2025

2026

Revenue:

Gathering and compression–Antero Resources

$

248,901

271,507

Water handling–Antero Resources

73,773

78,539

Water handling–third party

466

—

Amortization of customer relationships

(17,668)

(22,802)

Total revenue

305,472

327,244

Operating expenses:

Direct operating

63,114

84,526

General and administrative (including $11,407 and $10,828 of equity-based compensation
      in 2025 and 2026, respectively)

22,125

22,557

Facility idling

375

287

Depreciation

33,364

37,378

Impairment of property and equipment

—

133

Other operating expense, net

50

454

Total operating expenses

119,028

145,335

Operating income

186,444

181,909

Other income (expense):

Interest expense, net

(47,962)

(55,680)

Equity in earnings of unconsolidated affiliates

30,016

28,525

Transaction expense

—

(273)

Total other expense

(17,946)

(27,428)

Income before income taxes

168,498

154,481

Income tax expense

(43,985)

(40,966)

Net income and comprehensive income

$

124,513

113,515

Net income per common share–basic

$

0.26

0.24

Net income per common share–diluted

$

0.26

0.24

Weighted average common shares outstanding:

Basic

479,083

474,909

Diluted

482,451

477,113

ANTERO MIDSTREAM CORPORATION
Selected Operating Data (Unaudited)

Amount of

Three Months Ended June30,

 Increase

Percentage

2025

2026

or Decrease

Change

Operating Data:

Gathering (MMcf)

314,826

375,249

60,423

19

%

Compression (MMcf)

313,706

367,280

53,574

17

%

Centralized compression (MMcf)

313,706

299,283

(14,423)

(5)

%

Well pad compression (MMcf)

—

67,997

67,997

100

%

High pressure gathering (MMcf)

293,146

271,748

(21,398)

(7)

%

Fresh water delivery (MBbl)(1)

8,941

7,479

(1,462)

(16)

%

Other water handling (MBbl)(2)

5,330

12,376

7,046

132

%

Wells serviced by fresh water delivery

11

21

10

91

%

Gathering (MMcf/d)

3,460

4,124

664

19

%

Compression (MMcf/d)

3,447

4,036

589

17

%

Centralized compression (MMcf/d)

3,447

3,289

(158)

(5)

%

Well pad compression (MMcf/d)

—

747

747

100

%

High pressure gathering (MMcf/d)

3,221

2,986

(235)

(7)

%

Fresh water delivery (MBbl/d) (1)

98

82

(16)

(16)

%

Other water handling (MBbl/d) (2)

59

136

77

131

%

Average Realized Fees (3):

Gathering ($/Mcf)

$

0.36

0.37

0.01

3

%

Centralized compression ($/Mcf)

$

0.22

0.22

—

*

High pressure gathering ($/Mcf)

$

0.23

0.23

—

*

Fresh water delivery ($/Bbl) (1)

$

4.37

4.44

0.07

2

%

Joint Venture Operating Data:

Processing (MMcf)

153,560

151,217

(2,343)

(2)

%

Fractionation (MBbl)

3,640

3,640

—

*

Processing (MMcf/d)

1,687

1,662

(25)

(1)

%

Fractionation (MBbl/d)

40

40

—

*

________________________________

*Not meaningful or applicable.

(1)

Fresh water delivery includes fresh water charged at a fixed fee under our water services agreement with Antero Resources.

(2)

Other water handling includes fresh water charged at cost plus 3% for services provided to Antero Resources on its acreage acquired from HG Production and our other fluid handling services charged at cost plus 3% or cost of service.

(3)

The average realized fees for the three months ended June 30, 2026, include annual CPI-based adjustments of approximately 1.5%.

ANTERO MIDSTREAM CORPORATION 
Condensed Consolidated Results of Segment Operations (Unaudited)
(In thousands)

Three Months Ended June 30, 2026

Gathering and

Water

Consolidated

(in thousands)

Processing

Handling

Unallocated (1)

Total

Revenues:

Revenue–Antero Resources

$

271,507

78,539

—

350,046

Amortization of customer relationships

(13,784)

(9,018)

—

(22,802)

Total revenues

257,723

69,521

—

327,244

Operating expenses:

Direct operating

36,533

47,993

—

84,526

General and administrative (excluding equity-based
     compensation)

6,564

2,625

2,540

11,729

Equity-based compensation

7,988

2,526

314

10,828

Facility idling

—

287

—

287

Depreciation

18,884

18,494

—

37,378

Impairment of property and equipment

133

—

—

133

Other operating expense, net

—

454

—

454

Total operating expenses

70,102

72,379

2,854

145,335

Operating income (loss)

187,621

(2,858)

(2,854)

181,909

Other income (expense):

Interest expense, net

—

—

(55,680)

(55,680)

Equity in earnings of unconsolidated affiliates

28,525

—

—

28,525

Transaction expense

—

—

(273)

(273)

Total other income (expense)

28,525

—

(55,953)

(27,428)

Income (loss) before income taxes

216,146

(2,858)

(58,807)

154,481

Income tax expense

—

—

(40,966)

(40,966)

Net income (loss) and comprehensive income (loss)

$

216,146

(2,858)

(99,773)

113,515

________________________________

(1)

Corporate expenses that are not directly attributable to either the gathering and processing or water handling segments.

ANTERO MIDSTREAM CORPORATION
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)

Six Months Ended June 30,

2025

2026

Cash flows provided by (used in) operating activities:

Net income

$

245,250

231,781

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

Depreciation

66,112

72,013

Impairment of property and equipment

817

133

Deferred income tax expense

76,493

78,605

Equity-based compensation

23,809

21,407

Equity in earnings of unconsolidated affiliates

(58,036)

(58,537)

Distributions from unconsolidated affiliates

68,730

71,000

Amortization of customer relationships

35,336

44,012

Amortization of deferred financing costs

2,621

3,051

Settlement of asset retirement obligations

(258)

(74)

Gain on long-lived assets

—

(2,658)

Other operating activities

94

488

Changes in assets and liabilities:

Accounts receivable–Antero Resources

3,557

(8,345)

Accounts receivable–third party

304

361

Other current assets

(195)

120

Accounts payable–Antero Resources

166

416

Accounts payable–third party

1,750

3,501

Income taxes payable

989

—

Accrued liabilities

(3,414)

35,599

Net cash provided by operating activities

464,125

492,873

Cash flows provided by (used in) investing activities:

Additions to gathering systems, facilities and other

(43,094)

(54,838)

Additions to water handling systems

(24,168)

(35,811)

Additional investments in unconsolidated affiliate

(5,078)

(900)

Acquisition of HG Midstream

—

(1,103,032)

Proceeds from asset sales

6

378,628

Other investing activities

—

171

Net cash used in investing activities

(72,334)

(815,782)

Cash flows provided by (used in) financing activities:

Dividends to common stockholders

(224,134)

(220,735)

Dividends to preferred stockholders

(275)

(275)

Repurchases of common stock

(45,340)

(26,355)

Borrowings on Credit Facility

567,500

1,411,200

Repayments on Credit Facility

(662,500)

(1,069,300)

Payments of deferred financing costs

—

(1,784)

Employee tax withholding for settlement of equity-based compensation awards

(27,042)

(32,555)

Payments on capital lease obligations

—

(222)

Net cash provided by (used in) financing activities

(391,791)

59,974

Net decrease in cash, cash equivalents and restricted cash

—

(262,935)

Cash, cash equivalents and restricted cash, beginning of period

—

262,935

Cash, cash equivalents and restricted cash, end of period

$

—

—

Supplemental disclosure of cash flow information:

Cash paid during the period for interest

93,416

91,865

Income taxes paid during the period

2,600

—

Increase (decrease) in accrued capital expenditures and accounts payable for property and
      equipment

9,795

(2,919)

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

351

47,618

SOURCE Antero Midstream Corporation