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Strategy reported an $8.33 billion second-quarter operating loss after Bitcoin’s 27% decline this year drove a sharp reduction in the value of its digital asset portfolio.

Summary

Strategy recorded an $8.32 billion unrealized digital asset loss during the second quarter. Its 843,775 BTC were worth $54.77 billion, below their $63.69 billion acquisition cost. The company posted an $8.22 billion net loss, equal to $24.45 per diluted share. A $3.75 billion dollar reserve provides 2.1 years of preferred dividend coverage under Strategy’s policy. Strategy’s Bitcoin decline drives $8.33B loss Bitcoin traded near $64,700 following Strategy’s earnings announcement, down from approximately $88,400 at the end of 2025. That decline left the company’s holdings valued below their aggregate purchase cost.

Strategy recorded an $8.32 billion unrealized loss on digital assets during the quarter, contributing to an operating loss of $8.33 billion. The results reversed the $14.05 billion unrealized gain recorded in the same quarter a year earlier.

The company reported a net loss of $8.22 billion, or $24.45 per diluted common share. Strategy posted net income of $10.02 billion, or $32.60 per share, during the comparable period last year.

Strategy shares were mostly unchanged in after-hours trading following the earnings release, suggesting investors had largely expected Bitcoin’s decline to weigh on the results.

Bitcoin holdings fall below Strategy’s acquisition cost Strategy held 843,775 BTC as of July 26, an increase of 25% since the start of the year. The position had an original cost of $63.69 billion, including fees and expenses, and a market value of $54.77 billion.

Its average purchase price stood at approximately $75,476 per Bitcoin. With BTC trading near $64,700 after the report, the company’s position was about $10,776 underwater per coin based on its average acquisition cost.

The gap placed the total portfolio roughly $8.92 billion below its original cost. However, the reported quarterly loss was largely unrealized, meaning it reflected changes in Bitcoin’s market value rather than losses from selling the full position.

As crypto.news reported earlier, Strategy made no Bitcoin purchases between July 20 and July 26. Its total holdings remained unchanged at 843,775 BTC during that period.

The company has nevertheless sold approximately $218.4 million in Bitcoin this year to help fund preferred stock dividends. Those sales remain small relative to its overall digital asset reserve but show that Strategy is using part of the portfolio to meet financing obligations.

Strategy raises cash while reducing convertible debt Strategy’s core software business generated quarterly revenue of $122.4 million, up 6.9% from $114.5 million a year earlier. Gross profit reached $81.6 million, representing a margin of 66.6%.

The company raised $17.06 billion through its capital markets programs during the year and reported a Bitcoin yield of 4.5%. That internal metric measures the change in Bitcoin held per assumed diluted share and does not represent a conventional investment yield.

Strategy also cut its convertible debt by 18% to $6.71 billion after repurchasing $1.5 billion of notes at a discount. The move reduced part of the company’s debt burden as lower Bitcoin prices placed pressure on its balance sheet.

Its U.S. dollar reserve rose by $525 million to $3.75 billion. Strategy said the reserve provides 2.1 years of coverage for preferred stock dividends under its current policy, although the calculation does not guarantee payments under every market condition.

Separate $1 billion repurchase programs have also been established for Strategy’s common shares and digital credit securities. The programs give the company the option to buy back securities but do not require it to use the full authorized amounts.

What the results mean for US investors Strategy remains one of the largest publicly traded corporate Bitcoin holders, giving U.S. investors indirect exposure to BTC through its securities. Its shares can respond to Bitcoin prices as well as debt costs, equity issuance, preferred dividends and changes in the company’s capital structure.

The second-quarter loss shows how Bitcoin volatility can produce large swings in reported earnings. Strategy moved from a $14.05 billion unrealized digital asset gain a year earlier to an $8.32 billion unrealized loss this quarter.

Its increased cash reserve and lower convertible debt provide additional financial flexibility, but Bitcoin remains below the company’s average purchase price. Further declines could deepen unrealized losses, while a recovery above $75,476 would move the portfolio back above its aggregate acquisition cost.

It has been 11 years since the network behind the world's largest altcoin launched. Here's what happened since.

Ethereum’s (ETH) genesis block turned 11 on July 30, closing quite a busy year. The network now runs on a 60 million gas limit, double where it sat two years ago, with rollups carrying roughly 95% of its transactions.

On the morning of the anniversary, blocks were landing about 229 transactions each, close to 21 per second on the base layer, and running 55% full. The base fee sat near 5.3 gwei, which works out to about $0.20 for a plain ETH transfer, $0.52 for an ERC-20 transfer, and $3.79 for a swap, according to data from Etherscan.

Scaling and ETFs The fund wrappers arrived alongside the scaling. Morgan Stanley began trading the cheapest US ether ETP at a 0.14% expense ratio on Tuesday, staking 50% to 80% of its holdings and passing the rewards through.

Likewise, BlackRock’s ETHB holds spot ETH and stakes a portion of it, the firm’s first crypto fund to do so. Both lean on Revenue Procedure 2025-31, the safe harbor letting exchange-traded products stake and distribute rewards without a separate tax charge.

Two upgrades are queued for this year: Glamsterdam and Hegotá. The 2026 protocol roadmap sets three tracks – scaling, user experience, and hardening the base layer – and targets a gas limit beyond 100 million per block, and names post-quantum readiness a consideration across protocol development.

Despite all of this, it has been a painful year for the native token. ETH traded at $1,920 on July 30, down 49% over the 12 months to the anniversary and 61% below the $4,946 record it set on August 24, 2025. Its market capitalization stood at $231 billion across 120.7 million coins, second behind Bitcoin.

Two Directors Out in Five Months The network had some interesting developments, and the overall project managed to thrive, despite all the duress the Ethereum Foundation (EF) went through recently.

You may also like: Why Is Lido Moving $16B in Staked ETH to Pectra-Era Validators? Ethereum Could Hit $20K as Multi-Year BTC Base Completes: Analyst Tom Lee’s Bitmine Keeps Buying Ethereum, Treasury Nears 5.8 Million ETH Around 54 colleagues had departed, close to 20% of its workforce, and reorganized what remained into five clusters covering the protocol, access, user, community and institutional layers, plus operations and management.

Investor Ryan Berckmans, an eight-year figure in the community, attributed the wider wave of exits to disagreements over sub-strategies. He said confidence in the network itself was not the reason. Researchers Carl Beek, Julian Ma, Barnabé Monnot, Tim Beiko, Trent Van Epps and Josh Stark all left during the same stretch.

Tomasz Stańczak stepped down as co-executive director on February 13, effective immediately, with Bastian Aue named interim co-executive director. The board said Stańczak left “after extensive contributions to the Foundation’s mission and operations.”

Hsiao-Wei Wang resigned as co-executive director and board member in June, writing that she had decided to step down “after my sabbatical.” That leaves Vitalik Buterin, Patrick Storchenegger and Aya Miyaguchi on the board.

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Dana Love, PhD, has brought renewed attention to the concentration of Ethereum’s staked ETH under a small group of node operators, specifically through Lido’s liquid-staking platform. As the largest liquid-staking protocol on Ethereum, Lido plays a pivotal role in how staked ETH is managed, and its governance structures are increasingly scrutinized by the community.

Love notes that approximately 8 million ETH, representing about $16.5 billion, is managed by just 34 curated node operators within Lido. According to his analysis, this points to a permissioned system, where operational authority is concentrated in a select group rather than distributed openly across a broad set of participants. He suggests that focusing on the sheer number of validators can obscure the reality of who ultimately controls the ETH stake within the network.

The number of validators was never a measure of decentralization; what matters is how much of the stake is actually managed by a handful of operators, Love argues.

In Lido’s structure, membership as an operator is not automatic for ETH holders. Prospective operators must apply, undergo a committee-led review, and secure approval through a governance vote before being admitted to the curated set.

Mini dictionary: Lido is a decentralized liquid staking protocol on the Ethereum network, allowing users to stake their ETH and receive liquid stETH tokens in return, while curated node operators are selected and vetted participants who run validator nodes on behalf of Lido stakers.

Curated Module v2 and bond requirementsThe discussion centers on Lido’s forthcoming Curated Module v2, which introduces a schedule of bond requirements for its curated operators. Under the proposed scheme, each operator must post collateral in ETH that can be penalized for validator downtime, slashing events, or mishandled execution rewards. According to Love, the first validator key managed by an operator requires 11 ETH in collateral, with much smaller additional stakes needed for subsequent validators.

In contrast, Lido’s Community Staking Module reportedly asks smaller operators to post 2.4 ETH for their initial validator and 1.3 ETH for each additional one. Love contends that this structure gives established curated operators a more capital-efficient arrangement relative to their scale, raising potential questions of fairness in operator admission and economics.

ModuleInitial Bond per ValidatorBond for Subsequent ValidatorsOperator AdmissionCurated Module v211 ETHLower incremental requirementBy committee approvalCommunity Staking Module2.4 ETH1.3 ETHOpen (with review)Penalties and disputes for curated operators are managed by a Curated Module Committee, which operates with a nine-member multisignature wallet, requiring six signatures for any enforcement action.

Validator consolidation and the decentralization debateLove also addresses recent shifts connected to the Ethereum Pectra upgrade and EIP-7251, which increased the maximum effective validator balance from 32 ETH to 2,048 ETH. This technical update enables the consolidation of resources from many small validators into a smaller set of larger validators, reducing system overhead but not necessarily democratizing who holds governance power over the staked ETH.

He highlights a recent drop in Ethereum’s total validator count from about 880,000 to 628,000 as consolidation has taken hold. However, the underlying control remains largely unchanged, with the same curated operators maintaining their significant share of the aggregate staked ETH managed via Lido.

At the time of Love’s video, Lido’s Curated Module v2 bond system was not yet live on Ethereum mainnet. Smart contract audits were still under way and Phase One deployment was expected before the end of the quarter.

With Lido’s proposed bonds, operational and governance risks remain primarily in the hands of a small number of players, not the wider ETH community.

While the new bond schedule is designed to promote accountability, the combination of permissioned operator selection, bond requirements, and committee-governed penalties reflects the ongoing debate about where risk and authority reside in Ethereum’s staking ecosystem.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

MENLO PARK, Calif., July 30, 2026 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the second quarter of fiscal year 2026 ended July 3, 2026.

“Exponent delivered another strong quarter, with double-digit growth in revenues and earnings reflecting continued demand for our specialized expertise across industries,” stated Dr. Catherine Corrigan, Chief Executive Officer. “Our proactive work experienced strong growth in the quarter, led by demand for user research studies as clients accelerate the development of AI-enabled products across an increasingly diverse range of hardware form factors and applications, with engagements continuing to expand in scope, scale and complexity. Proactive activity was also supported by increased risk management and infrastructure-related engagements in the utility sector. Reactive work grew, with strong demand for our dispute-related expertise from the consumer products, chemicals, and transportation industries.

“These results reflect the powerful long-term trends driving our business, including rapid technological innovation, increasing complexity, growing energy demand, investment in resilient power and digital infrastructure, and rising expectations for safety, reliability, and performance. As artificial intelligence becomes embedded in an expanding array of physical products and systems, organizations face increasingly daunting human factors, operational, and risk management challenges that extend well beyond software. Clients turn to Exponent when they encounter critical questions involving the interaction of technology, people, and complex real-world environments, particularly when the consequences of failure are exceptionally high. Our multidisciplinary teams provide the independent, science-based insights needed to accelerate innovation, improve decision-making, and reduce high-consequence risk in areas where few organizations possess comparable expertise,” Dr. Corrigan continued.

Second Quarter Financial Results

Total revenues and revenues before reimbursements for the second quarter of 2026 increased 21% to $171.6 million and 12% to $148.9 million, respectively, as compared to $142.0 million and $132.9 million in the second quarter of 2025.

Net income increased to $29.4 million, or $0.60 per diluted share, in the second quarter of 2026, as compared to $26.6 million, or $0.52 per diluted share, in the same period of 2025. The tax impact associated with share-based awards was immaterial in both the second quarter of 2026 and 2025. Exponent’s consolidated tax rate was 27.9% in the second quarter of 2026, unchanged from the same period in 2025.

EBITDA1 increased to $42.7 million, or 28.7% of revenues before reimbursements, in the second quarter of 2026, as compared to $37.0 million, or 27.8% of revenues before reimbursements in the second quarter of 2025.

Year-to-Date Financial Results

Total revenues and revenues before reimbursements for the first half of 2026 increased 18% to $337.9 million and 11% to $300.7 million, respectively, as compared to $287.5 million and $270.3 million in the same period of 2025.

Net income increased to $59.0 million, or $1.19 per diluted share, in the first half of 2026, as compared to $53.2 million, or $1.03 per diluted share, in the same period of 2025. During the first half of 2026, we realized a negative tax impact associated with share-based awards of $0.8 million as compared to $0.5 million in the first half of 2025. Inclusive of the tax impact associated with share-based awards, Exponent’s consolidated tax rate was 29.0% in the first half of 2026, as compared to 28.7% for the same period last year.

EBITDA1 increased to $85.9 million, or 28.6% of revenues before reimbursements, in the first half of 2026, as compared to $74.5 million, or 27.6% of revenues before reimbursements, in the first half of 2025.

For the first half of 2026, Exponent paid $31.3 million in dividends, repurchased $146.1 million of common stock, and closed the period with $66.6 million in cash and cash equivalents.

In a separate press release today, Exponent announced its quarterly cash dividend of $0.31 to be paid on September 18, 2026, and reiterated its intent to continue to pay quarterly dividends. Additionally, Exponent’s Board of Directors approved an increase in the current stock repurchase program of $50 million.

Business Overview

Exponent’s engineering and other scientific segment represented 85% of the Company’s revenues before reimbursements in the second quarter and through the first two quarters of 2026. Revenues before reimbursements in this segment increased 13% during the second quarter and 12% during the first half of 2026, as compared to the prior year period. Growth during the quarter was driven by strong user research activity in consumer electronics, risk management and infrastructure-related work in the utilities sector, and reactive engagements across the consumer products, chemicals, and transportation industries.

Exponent’s environmental and health segment represented 15% of the Company’s revenues before reimbursements in the second quarter and through the first two quarters of 2026. Revenues before reimbursements in this segment increased 9% during the second quarter and 5% during the first half of 2026, as compared to the same period in the prior year. Growth during the quarter was driven by engagements evaluating the impacts of chemicals on human health and the environment.

Business Outlook

“Our second quarter results demonstrate continued disciplined execution across the business, with strong utilization of 74% contributing to performance that exceeded our expectations,” commented Eric Anderson, Chief Financial Officer. “We continued to invest in our talent and capabilities while maintaining a disciplined capital allocation strategy, returning a combined $272 million to shareholders over the last twelve months through share repurchases and our ongoing dividend program.”

For the third quarter of fiscal 2026 as compared to the same period one year prior, Exponent anticipates:

Revenues before reimbursements to grow 8% to 10%; and,EBITDA1 to be 28.0% to 28.5% of revenues before reimbursements. For the full fiscal year 2026 as compared to fiscal year 2025, Exponent is raising its revenue and margin guidance, anticipating:

Revenues before reimbursements to grow 9% to 10%; and,EBITDA1 to be 27.8% to 28.1% of revenues before reimbursements. “Exponent remains well positioned to support clients as emerging technologies, critical infrastructure, and increasingly complex and interconnected systems reshape industries around the world,” Dr. Corrigan said. “Whether helping clients evaluate AI-enabled products, enhancing the resilience and performance of infrastructure, or navigating complex technical and regulatory challenges, our expert ecosystem provides the rigorous, independent insights needed when the stakes are high. We remain confident in our ability to expand our impact across industries and deliver long-term value for our shareholders.”

Today’s Conference Call Information

Exponent will discuss its financial results in more detail on a conference call today, Thursday, July 30, 2026, starting at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. The audio of the conference call is available by dialing (844) 481-2781 or (412) 317-0672. A live webcast of the call will be available on the Investor Relations section of the Company’s website at www.exponent.com/investors. For those unable to listen to the live webcast, a replay of the call will also be available on the Exponent website, or by dialing (855) 669-9658 or (412) 317-0088 and entering passcode 7563057#.

Use of non-GAAP Financial Measures 1

EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation, and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income, net income, and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present, and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP.

Exponent has provided its outlook regarding EBITDA as a percentage of revenues before reimbursements. The Company has not reconciled this non-GAAP financial measure to the corresponding GAAP financial measure because guidance for the various reconciling items is not provided and the Company is unable to estimate with reasonable certainty the effect of these items without unreasonable effort. For example, the Company is unable to estimate with reasonable certainty the impact of equity awards on Exponent’s taxes without unreasonable effort. These items are uncertain, depend on various factors, and may have a material effect on Exponent’s results computed in accordance with GAAP. A reconciliation between the historical GAAP and non-GAAP financial measures presented in this release is provided in the financial tables at the end of this release.

About Exponent

Exponent brings together 90+ technical disciplines and 950+ consultants to help our clients navigate the increasing complexity of more than a dozen industries, connecting decades of pioneering work in failure analysis to develop solutions for a safer, healthier, more sustainable world.

Exponent’s consultants deliver the highest value by leveraging multidisciplinary expertise and resources from across Exponent’s offices in North America, Asia, and Europe. Exponent’s consultants, laboratories, and integrated technical platform work seamlessly together around the globe, enabling us to produce the breakthrough insights needed to help multinational companies, startups, law firms, insurance companies, governments, and society respond to incidents and push their products and processes forward at speed.

Exponent may be reached at (888) 656­-EXPO, [email protected], or www.exponent.com.

Forward Looking Statements

This news release contains, and incorporates by reference, certain “forward-looking” statements (as such term is defined in the Private Securities Litigation Reform Act of 1995, and the rules promulgated pursuant to the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended) that are based on the beliefs of the Company’s management, as well as assumptions made by and information currently available to the Company’s management. When used in this document and in the documents incorporated herein by reference, the words “intend,” “anticipate,” “believe,” “estimate,” “expect” and similar expressions, as they relate to the Company or its management, identify such forward-looking statements. Such statements reflect the current views of the Company or its management with respect to future events and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, any such forward-looking statements. Factors that could cause or contribute to such material differences include the possibility that the demand for our services may decline as a result of changes in generally applicable and industry-specific economic conditions, the timing of engagements for our services, the effects of competitive services and pricing, the absence of backlog related to our business, our ability to attract and retain key employees, the effect of tort reform and government regulation on our business, and liabilities resulting from claims made against us. Additional risks and uncertainties are discussed in our Annual Report on Form 10-K under the heading “Risk Factors” and elsewhere in the report. The inclusion of such forward-looking information should not be regarded as a representation by the Company or any other person that the future events, plans, or expectations contemplated by the Company will be achieved. The Company undertakes no obligation to release publicly any updates or revisions to any such forward-looking statements.

Source: Exponent, Inc.

 EXPONENT, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the Three and Six Months Ended July 3, 2026 and July 4, 2025
(unaudited)
(in thousands, except per share data)
                         Quarter Ended
 Six Months Ended
   July 3,
 July 4,
 July 3,
 July 4,
   2026
 2025
 2026
 2025
              Revenues            Revenues before reimbursements$148,860  $132,868  $300,677  $270,305  Reimbursements 22,752   9,094   37,238   17,164                 Revenues 171,612   141,962   337,915   287,469               Operating expenses            Compensation and related expenses 100,571   97,474   191,980   173,377  Other operating expenses 12,865   12,072   25,690   24,167  Reimbursable expenses 22,752   9,094   37,238   17,164  General and administrative expenses 7,402   6,145   13,606   11,152                   143,590   124,785   268,514   225,860                 Operating income 28,022   17,177   69,401   61,609               Other income            Interest income, net 716   2,344   2,434   5,058  Miscellaneous income (expense), net 12,028   17,294   11,270   7,908     12,744   19,638   13,704   12,966                 Income before income taxes 40,766   36,815   83,105   74,575               Income taxes 11,371   10,262   24,141   21,372                               Net income$29,395  $26,553  $58,964  $53,203                             Net income per share:            Basic$0.60  $0.52  $1.20  $1.04  Diluted$0.60  $0.52  $1.19  $1.03               Shares used in per share computations:            Basic 48,753   51,185   49,271   51,234  Diluted 48,987   51,502   49,571   51,587                 EXPONENT, INC.CONDENSED CONSOLIDATED BALANCE SHEETSJuly 3, 2026 and January 2, 2026(unaudited)(in thousands)                  July 3, January 2,    2026
 2026
   Assets   Current assets:
    Cash and cash equivalents$66,629  $221,930  Accounts receivable, net 218,504   181,507  Prepaid expenses and other assets 26,881   24,143   Total current assets 312,014   427,580 Property, equipment and leasehold improvements, net 70,854   71,981 Operating lease right-of-use asset 68,954   73,376 Goodwill
 8,607   8,607 Other assets
 192,294   195,975     $652,723  $777,519           Liabilities and Stockholders' Equity   Current liabilities:    Accounts payable and accrued liabilities$26,942  $30,942  Accrued payroll and employee benefits 102,186   121,302  Deferred revenues 21,953   18,868  Operating lease liability 6,757   6,890   Total current liabilities 157,838   178,002 Other liabilities
 132,305   133,232 Operating lease liability 73,964   75,944   Total liabilities 364,107   387,178        Stockholders' equity:    Common stock 66   66  Additional paid-in capital 389,568   369,747  Accumulated other comprehensive loss (2,378)  (2,290) Retained earnings 696,405   668,423  Treasury stock, at cost (795,045)  (645,605)   Total stockholders' equity 288,616   390,341     $652,723  $777,519          EXPONENT, INC.EBITDA and EBITDAS (1)For the Three and Six Months Ended July 3, 2026 and July 4, 2025(unaudited)(in thousands)                   Quarter Ended Six Months Ended   July 3, July 4, July 3, July 4,   2026
 2025
 2026
 2025
          Net Income$29,395  $26,553  $58,964  $53,203           Add back (subtract):                  Income taxes 11,371   10,262   24,141   21,372  Interest income, net (716)  (2,344)  (2,434)  (5,058) Depreciation and amortization 2,678   2,520   5,193   5,012             EBITDA (1) 42,728   36,991   85,864   74,529            Stock-based compensation 6,680   5,246   15,738   13,426             EBITDAS (1)$49,408  $42,237  $101,602  $87,955                               (1) EBITDA is a non-GAAP financial measure defined by the Company as net income before income taxes, interest income, depreciation and amortization. EBITDAS is a non-GAAP financial measure defined by the Company as EBITDA before stock-based compensation. The Company regards EBITDA and EBITDAS as useful measures of operating performance and cash flow to complement operating income, net income and other GAAP financial performance measures. Additionally, management believes that EBITDA and EBITDAS provide meaningful comparisons of past, present and future operating results. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. These measures, however, should be considered in addition to, and not as a substitute or superior to, operating income, cash flows, or other measures of financial performance prepared in accordance with GAAP.          

July 30, 2026 16:15 ET  | Source: CooperCompanies

SAN RAMON, Calif., July 30, 2026 (GLOBE NEWSWIRE) -- CooperCompanies (Nasdaq: COO), a leading global medical device company, announced today it will report third quarter 2026 financial results on Wednesday, September 9, 2026, at 4:15 PM ET. Following the release, the Company will host a conference call at 5:00 PM ET to discuss the results and current corporate developments.

The dial-in number for the call is 800-715-9871 and the conference ID is 9708839. A simultaneous audio webcast and subsequent replay can be accessed at www.investor.coopercos.com

About CooperCompanies

CooperCompanies (Nasdaq: COO) is a leading global medical device company focused on helping people experience life’s beautiful moments through its two business units, CooperVision and CooperSurgical. CooperVision is a trusted leader in the contact lens industry, helping to improve the way people see each day. CooperSurgical is a leading fertility and women’s healthcare company dedicated to putting time on the side of women, babies, and families at the healthcare moments that matter most. Headquartered in San Ramon, CA, CooperCompanies has a workforce of more than 15,000, sells products in over 130 countries, and positively impacts over fifty million lives each year. For more information, please visit www.coopercos.com

Contact:

Kim Duncan
Vice President, Investor Relations and Risk Management
925-460-3663
[email protected]

, /PRNewswire/ -- Grand Canyon Education, Inc. (NASDAQ: LOPE), ("GCE" or the "Company"), is a publicly traded education services company that currently provides services to 20 university partners.  GCE provides a full array of support services in the post-secondary education sector and has developed significant technological solutions, infrastructure and operational processes to provide superior services in these areas on a large scale.  GCE today announced financial results for the quarter ended June 30, 2026.

Grand Canyon Education, Inc. Reports Second Quarter 2026 Results

For the three months ended June 30, 2026:

Service revenue for the three months ended June 30, 2026 was $264.0 million, an increase of $16.5 million, or 6.7%, as compared to service revenue of $247.5 million for the three months ended June 30, 2025.  The increase year over year in service revenue was primarily due to an increase in university partner enrollments of 7.6% to 126,231 at June 30, 2026 as compared to 117,283 at June 30, 2025.  Revenue per student decreased slightly between years primarily due to contract modifications with one of our university partners in which our revenue share percentage was reduced in exchange for us no longer reimbursing this partner for certain faculty costs which had the effect of reducing revenue per student and a slight decline year over year in revenue per student for online students due to the continued mix shift to students that have a slightly lower net tuition rate and a slight decline year over year in Spring semester ground traditional students which generate a higher revenue per student than online students.  In addition there was one less day of revenue for the ground campus due to the start date shifting one day of revenue from the second quarter to the first quarter in 2026 which had a $1.0 million impact.  These decreases were partially offset by the service revenue per student for accelerated Bachelor of Science in Nursing ("ABSN") students at off-campus classroom and laboratory sites generating a significantly higher revenue per student than we earn under our agreement with GCU, as these agreements generally provide us with a higher revenue share percentage, the partners have higher tuition rates than GCU and the majority of our partners' students take more credits on average per semester. GCU enrollments increased to 121,921 at June 30, 2026, an increase of 7.5% over enrollments at June 30, 2025. University partner enrollments at our off-campus classroom and laboratory sites were 5,829, an increase of 16.8% over enrollments at June 30, 2025, which includes 1,519 and 1,142 GCU students at June 30, 2026 and 2025, respectively.  Excluding sites that have been closed or are in teach out, total enrollments at our off-campus classroom and laboratory sites increased 18.5% between years.  We opened one new GCU site in the six months ended June 30, 2026 and closed one site in which we stopped recruiting new students in 2025, thus the total number of sites remains at 47 at June 30, 2026.  We plan to open one additional site in the Fall of 2026.  Enrollments for GCU ground students were 8,910 at June 30, 2026, up 3.9% from 8,579 at June 30, 2025.  GCU ground enrollment declines between March 31 and June 30 of each year as ground traditional enrollment at GCU at June 30 of each year only includes traditional-aged students taking summer school classes, which is a small percentage of GCU's traditional-aged student body.  The Spring semester for GCU's traditional-aged student body ends near the end of April each year.  GCU online enrollments were 113,011 at June 30, 2026, up from 104,856 at June 30, 2025, an increase of 7.8% between years. Operating income for the three months ended June 30, 2026 was $58.2 million, an increase of $6.4 million, or 12.3%, as compared to $51.8 million for the same period in 2025.  The operating margin for the three months ended June 30, 2026 and 2025 was 22.0% and 20.9%, respectively.   Income tax expense for the three months ended June 30, 2026 was $15.0 million, an increase of $1.5 million, or 11.4%, as compared to income tax expense of $13.5 million for the three months ended June 30, 2025.  Our effective tax rate was 24.7% during the three months ended June 30, 2026 compared to 24.5% during the three months ended June 30, 2025.  The effective tax rate increased year over year due to higher state income taxes. Net income for the three months ended June 30, 2026 was $45.9 million, an increase of $4.4 million, or 10.4% as compared to $41.5 million for the same period in 2025.  As adjusted net income was $47.5 million and $43.2 million for the second quarters of 2026 and 2025, respectively. Diluted net income per share was $1.75 and $1.48 for the second quarters of 2026 and 2025, respectively.  As adjusted diluted net income per share was $1.81 and $1.53 for the second quarters of 2026 and 2025, respectively. Adjusted EBITDA increased 8.9% to $73.4 million for the second quarter of 2026, compared to $67.4 million for the same period in 2025. For the six months ended June 30, 2026:

Service revenue for the six months ended June 30, 2026 was $572.8 million, an increase of $36.0 million, or 6.7%, as compared to service revenue of $536.8 million for the six months ended June 30, 2025.  The increase year over year in service revenue was primarily due to an increase in university partner enrollments of 7.6% to 126,231 at June 30, 2026 as compared to 117,283 at June 30, 2025.  Revenue per student decreased slightly between years primarily due to contract modifications with one of our university partners in which our revenue share percentage was reduced in exchange for us no longer reimbursing this partner for certain faculty costs which had the effect of reducing revenue per student and a slight decline year over year in revenue per student for online students due to the continued mix shift to students that have a slightly lower net tuition rate and a slight decline year over year in Spring semester ground traditional students which generate a higher revenue per student than online students.  These decreases were partially offset by the service revenue per student for ABSN students at off-campus classroom and laboratory sites generating a significantly higher revenue per student than we earn under our agreement with GCU, as these agreements generally provide us with a higher revenue share percentage, the partners have higher tuition rates than GCU and the majority of our partners' students take more credits on average per semester. Operating income for the six months ended June 30, 2026 was $153.6 million, an increase of $13.8 million, or 9.9%, as compared to $139.8 million for the same period in 2025.  The operating margin for the six months ended June 30, 2026 and 2025 was 26.8% and 26.0%, respectively.   Income tax expense for the six months ended June 30, 2026 was $38.1 million, an increase of $4.8 million, or 14.7%, as compared to income tax expense of $33.3 million for the six months ended June 30, 2025.  Our effective tax rate was 23.9% during the six months ended June 30, 2026 compared to 22.7% during the six months ended June 30, 2025.  The effective tax rate increased year over year due to higher state income taxes and a decrease in excess tax benefits to $1.4 million for the six months ended June 30, 2026 due to the decline in our stock price as compared to $2.7 million in the six months ended June 30, 2025. The inclusion of excess tax benefits and deficiencies as a component of our income tax expense increases the volatility within our provision for income taxes as the amount of excess tax benefits or deficiencies from share-based compensation awards are dependent on our stock price at the date the restricted stock awards vest.  Our restricted stock awards vest in March each year so any benefit or expense will primarily impact the first quarter each year. Net income for the six months ended June 30, 2026 was $121.2 million, an increase of $8.0 million, or 7.1% as compared to $113.2 million for the same period in 2025.  As adjusted net income was $124.4 million and $116.5 million for the six months ended June 30, 2026 and 2025, respectively. Diluted net income per share was $4.57 and $4.00 for the six months ended June 30, 2026 and 2025, respectively.  As adjusted diluted net income per share was $4.69 and $4.12 for the six months ended June 30, 2026 and 2025, respectively. Adjusted EBITDA increased 8.7% to $184.1 million for the six months ended June 30, 2026, compared to $169.4 million for the same period in 2025. Liquidity and Capital Resources

Our liquidity position, as measured by cash and cash equivalents and investments decreased by $25.6 million between December 31, 2025 and June 30, 2026, which was largely attributable to cash expended for share repurchases and capital expenditures exceeding our cash provided by operations during the six months ended June 30, 2026.  Our unrestricted cash and cash equivalents and investments were $274.5 million and $300.1 million at June 30, 2026 and December 31, 2025, respectively.

Grand Canyon Education, Inc. Reports Second Quarter 2026 Results and Full Year Outlook 2026

2026 Outlook

Q3 2026:

Service revenue of between $268.5 million and $270.5 million; Operating margin of between 19.5% and 20.0%; Effective tax rate of 20.8%; Diluted EPS of between $1.68 and $1.72; and 25.8 million diluted shares. The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.7 million, which equates to a $0.06 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $1.74 and $1.78.

Q4 2026:

Service revenue of between $324.0 million and $329.0 million; Operating margin of between 36.9% and 37.4%; Effective tax rate of 23.2%; Diluted EPS of between $3.69 and $3.79; and 25.4 million diluted shares. The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $1.6 million, which equates to a $0.06 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $3.75 and $3.85.

Full Year 2026:

Service revenue of between $1,165.3 million and $1,172.3 million; Operating margin of between 28.0% and 28.2%; Effective tax rate of 23.2%; Diluted EPS between $9.93 and $10.07; and 26.1 million diluted shares. The diluted EPS guidance includes non-cash amortization of intangible assets net of taxes of $6.5 million, which equates to a $0.25 impact on diluted EPS. Thus, as adjusted, non-GAAP diluted income per share of between $10.18 and $10.32.

Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of federal securities laws including information relating to future events, future financial performance, strategies, expectations, competitive environment, regulation, and availability of resources.  These forward-looking statements include, without limitation, statements regarding: proposed new programs; whether regulatory, economic, or business developments or other matters may or may not have a material adverse effect on our financial position, results of operations, or liquidity; projections, predictions, expectations, estimates, and forecasts as to our business, financial and operating results, and future economic performance; and management's goals and objectives and other similar expressions concerning matters that are not historical facts.  Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar expressions, the negative of these expressions, as well as statements in future tense, identify forward-looking statements.

Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved.  Forward-looking statements are based on information available at the time those statements are made or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements.  Important factors that could cause our actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements include, but are not limited to: (i) legal and regulatory actions taken against us related to our services business, or against our university partners that impact their businesses and that directly or indirectly reduce the service revenue we can earn under our master services agreements; (ii) the occurrence of any event, change or other circumstance that could give rise to the termination of any of the key university partner agreements; (iii) our ability to properly manage risks and challenges associated with strategic initiatives, including potential acquisitions or divestitures of, or investments in, new businesses, acquisitions of new properties and new university partners, and expansion of services provided to our existing university partners; (iv) our ability to comply with the extensive regulatory framework applicable to us either directly as a third-party service provider or indirectly through our university partners; (v) our ability to manage risks associated with epidemics, pandemics, or public health crises; (vi) our ability to manage risks resulting from system disruptions, interruptions, or outages associated with our technology platforms or those of third-party service providers; (vii) the ability of our university partners' students to obtain federal Title IV funds, state financial aid, and private financing; (viii) potential damage to our reputation or other adverse effects as a result of negative publicity in the media, in the industry or in connection with governmental reports or investigations or otherwise; (ix) risks associated with changes in applicable federal and state laws and regulations and accrediting commission standards; (x) competition from other education service companies in our geographic region and market sector; (xi) our ability to hire and train new, and develop and train existing employees; (xii) the pace of growth of our university partners' enrollment and its effect on the pace of our own growth; (xiii) fluctuations in our revenues due to seasonality; (xiv) our ability to, on behalf of our university partners, convert prospective students to enrolled students and to retain active students to graduation; and (xv) other risks and uncertainties identified from time to time in documents filed with the Securities and Exchange Commission (the "SEC") by us, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed on February 18, 2026.

Forward-looking statements speak only as of the date the statements are made.  You should not put undue reliance on any forward-looking statements.  We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws.  If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.  This press release should be read in conjunction with the information included in our other press releases, reports and other filings with the SEC.  Understanding the information contained in these filings is important in order to fully understand GCE's reported financial results and our business outlook for future periods.

Grand Canyon Education, Inc. Reports Second Quarter 2026 Results

Conference Call

Grand Canyon Education, Inc. will discuss its second quarter 2026 results and full year 2026 outlook during a conference call scheduled for today, July 30, 2026 at 4:30 p.m. Eastern time (ET).

Live Conference Dial-In:

Those interested in participating in the question-and-answer session should follow the conference dial-in instructions below.  Participants may register for the call here to receive the dial-in numbers and unique PIN to access the call seamlessly. Please dial in at least ten minutes prior to the start of the call.  Journalists are invited to listen only.

Webcast and Replay:

Investors, journalists and the general public may access a live webcast of this event at: Q2 2026 Grand Canyon Education Inc. Earnings Conference Call. A webcast replay will be available approximately two hours following the conclusion of the call at the same link.

About Grand Canyon Education, Inc.

Grand Canyon Education, Inc. ("GCE"), incorporated in 2008, is a publicly traded education services company that currently provides services to 20 university partners.  GCE is uniquely positioned in the education services industry in that its leadership has over 30 years of proven expertise in providing a full array of support services in the post-secondary education sector and has developed significant technological solutions, infrastructure and operational processes to provide superior services in these areas on a large scale.  GCE provides services that support students, faculty and staff of partner institutions such as marketing, strategic enrollment management, counseling services, financial services, technology, technical support, compliance, human resources, classroom operations, content development, faculty recruitment and training, among others.  For more information about GCE visit the Company's website at www.gce.com.

Grand Canyon Education, Inc., 2600 W. Camelback Road, Phoenix, AZ 85017, www.gce.com.

Grand Canyon Education, Inc. Reports Second Quarter 2026 Results

GRAND CANYON EDUCATION, INC.

Consolidated Income Statements

(Unaudited)

Three Months Ended

Six Months Ended

June 30, 

June 30, 

2026

2025

2026

2025

(In thousands, except per share data)

Service revenue

$

264,045

$

247,499

$

572,805

$

536,809

Costs and expenses:

Technology and academic services

45,645

43,134

90,675

84,798

Counseling services and support

88,072

83,023

179,929

169,845

Marketing and communication

59,963

56,037

123,950

116,367

General and administrative

10,109

11,411

20,428

21,777

Amortization of intangible assets

2,105

2,105

4,210

4,210

Total costs and expenses

205,894

195,710

419,192

396,997

Operating income

58,151

51,789

153,613

139,812

Investment interest and other

2,702

3,226

5,723

6,607

Income before income taxes

60,853

55,015

159,336

146,419

Income tax expense

15,001

13,469

38,136

33,255

Net income

$

45,852

$

41,546

$

121,200

$

113,164

Earnings per share:

Basic income per share

$

1.75

$

1.48

$

4.58

$

4.02

Diluted income per share

$

1.75

$

1.48

$

4.57

$

4.00

Basic weighted average shares outstanding

26,162

27,996

26,451

28,136

Diluted weighted average shares outstanding

26,221

28,134

26,543

28,301

Grand Canyon Education, Inc. Reports Second Quarter 2026 Results

GRAND CANYON EDUCATION, INC.

Consolidated Balance Sheets

As of June 30, 

As of December 31,

(In thousands, except par value)

2026

2025

ASSETS:

(Unaudited)

Current assets

Cash and cash equivalents

$

171,060

$

111,762

Investments

103,466

188,317

Accounts receivable, net

34,237

84,278

Income taxes receivable

7,863

2,392

Other current assets

14,830

13,430

Total current assets

331,456

400,179

Property and equipment, net

181,051

178,957

Right-of-use assets

93,767

96,571

Amortizable intangible assets, net

147,333

151,543

Goodwill

160,766

160,766

Other assets

4,806

4,289

Total assets

$

919,179

$

992,305

LIABILITIES AND STOCKHOLDERS' EQUITY:

Current liabilities

Accounts payable

$

16,781

$

24,347

Accrued compensation and benefits

35,332

35,199

Accrued liabilities

34,989

32,283

Income taxes payable

69

3,355

Deferred revenue

15,119

—

Current portion of lease liability

15,346

14,568

Total current liabilities

117,636

109,752

Deferred income taxes, noncurrent

41,840

41,426

Other long-term liabilities

1,328

1,439

Lease liability, less current portion

88,866

92,755

Total liabilities

249,670

245,372

Commitments and contingencies

Stockholders' equity

Preferred stock, $0.01 par value, 10,000 shares authorized; 0 shares issued and outstanding at
June 30, 2026 and December 31, 2025

—

—

Common stock, $0.01 par value, 100,000 shares authorized; 54,265 and 54,178 shares issued
and 26,234 and 27,393 shares outstanding at June 30, 2026 and December 31, 2025,
respectively

543

542

Treasury stock, at cost, 28,031 and 26,785 shares of common stock at June 30, 2026 and
December 31, 2025, respectively

(2,496,632)

(2,291,610)

Additional paid-in capital

357,427

350,374

Accumulated other comprehensive (loss) gain

(145)

511

Retained earnings

2,808,316

2,687,116

Total stockholders' equity

669,509

746,933

Total liabilities and stockholders' equity

$

919,179

$

992,305

Grand Canyon Education, Inc. Reports Second Quarter 2026 Results

GRAND CANYON EDUCATION, INC.

Consolidated Statements of Cash Flows

(Unaudited)

Six Months Ended

June 30, 

(In thousands)

2026

2025

Cash flows provided by operating activities:

Net income

$

121,200

$

113,164

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

Share-based compensation

7,054

7,117

Depreciation and amortization

17,028

15,260

Amortization of intangible assets

4,210

4,210

Deferred income taxes

618

1,657

Other, including fixed asset disposals

(307)

(602)

Changes in assets and liabilities:

Accounts receivable

50,041

55,249

Other assets

(2,095)

(4,732)

Right-of-use assets and lease liabilities

(307)

379

Accounts payable

(7,841)

(2,605)

Accrued liabilities

892

3,014

Income taxes receivable/payable

(8,757)

(14,622)

Deferred revenue

15,119

14,150

Net cash provided by operating activities

196,855

191,639

Cash flows provided by (used in) investing activities:

Capital expenditures

(18,863)

(17,561)

Additions of amortizable content

(44)

(28)

Purchase of equity investment

—

(1,000)

Loss on equity investment

100

500

Purchases of investments

(36,672)

(191,666)

Proceeds from sale or maturity of investments

121,108

11,007

Net cash provided by (used in) investing activities

65,629

(198,748)

Cash flows used in financing activities:

Repurchase of common shares and shares withheld in lieu of income taxes

(203,186)

(125,236)

Net cash used in financing activities

(203,186)

(125,236)

Net increase (decrease) in cash and cash equivalents and restricted cash

59,298

(132,345)

Cash and cash equivalents and restricted cash, beginning of period

111,762

324,623

Cash and cash equivalents and restricted cash, end of period

$

171,060

$

192,278

Supplemental disclosure of cash flow information

Cash paid for interest

$

—

$

—

Cash paid for income taxes

$

43,728

$

44,476

Supplemental disclosure of non-cash investing and financing activities

Purchases of property and equipment included in accounts payable

$

1,110

$

1,302

Excise tax on treasury stock repurchases

$

1,836

$

1,087

Grand Canyon Education, Inc. Reports Second Quarter 2026 Results

GRAND CANYON EDUCATION, INC.

Adjusted EBITDA  (Non-GAAP Financial Measure)

Adjusted EBITDA is defined as net income plus interest expense, less interest income and other gain (loss) recognized on investments, plus income tax expense, and plus depreciation and amortization (EBITDA), as adjusted for (i) contributions to private Arizona school tuition organizations in lieu of the payment of state income taxes; (ii) share-based compensation; and (iii) unusual charges or gains, such as litigation and regulatory costs, impairment charges and asset write-offs, severance costs, and exit or lease termination costs.  We present Adjusted EBITDA because we consider it to be an important supplemental measure of our operating performance.  We also make certain compensation decisions based, in part, on our operating performance, as measured by Adjusted EBITDA.  All of the adjustments made in our calculation of Adjusted EBITDA are adjustments to items that management does not consider to be reflective of our core operating performance.  Management considers our core operating performance to be that which can be affected by our managers in any particular period through their management of the resources that affect our underlying revenue and profit generating operations during that period and does not consider the items for which we make adjustments (as listed above) to be reflective of our core performance.

We believe Adjusted EBITDA allows us to compare our current operating results with corresponding historical periods and with the operational performance of other companies in our industry because it does not give effect to potential differences caused by variations in capital structures (affecting relative interest expense, including the impact of write-offs of deferred financing costs when companies refinance their indebtedness), tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses), the book amortization of intangibles (affecting relative amortization expense), and other items that we do not consider reflective of underlying operating performance.  We also present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors, and other interested parties as a measure of performance.

In evaluating Adjusted EBITDA, investors should be aware that in the future we may incur expenses similar to the adjustments described above.  Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by expenses that are unusual, non-routine, or non-recurring.  Adjusted EBITDA has limitations as an analytical tool in that, among other things, it does not reflect:

cash expenditures for capital expenditures or contractual commitments; changes in, or cash requirements for, our working capital requirements; interest expense, or the cash required to replace assets that are being depreciated or amortized; and the impact on our reported results of earnings or charges resulting from the items for which we make adjustments to our EBITDA, as described above and set forth in the table below. In addition, other companies, including other companies in our industry, may calculate these measures differently than we do, limiting the usefulness of Adjusted EBITDA as a comparative measure.  Because of these limitations, Adjusted EBITDA should not be considered as a substitute for net income, operating income, or any other performance measure derived in accordance with and reported under GAAP, or as an alternative to cash flow from operating activities or as a measure of our liquidity.  We compensate for these limitations by relying primarily on our GAAP results and only use Adjusted EBITDA as a supplemental performance measure.

The following table provides a reconciliation of net income to Adjusted EBITDA, which is a non-GAAP measure for the periods indicated:

Three Months Ended

Six Months Ended

June 30, 

June 30, 

2026

2025

2026

2025

(Unaudited, in thousands)

(Unaudited, in thousands)

Net income

$

45,852

$

41,546

$

121,200

$

113,164

Less: investment interest and other

(2,702)

(3,226)

(5,723)

(6,607)

Plus: income tax expense

15,001

13,469

38,136

33,255

Plus: amortization of intangible assets

2,105

2,105

4,210

4,210

Plus: depreciation and amortization

8,685

7,809

17,028

15,260

EBITDA

68,941

61,703

174,851

159,282

Plus: share-based compensation

3,456

3,487

7,054

7,117

Plus: litigation and regulatory costs

975

2,159

2,142

2,902

Plus: loss on fixed asset disposal

23

62

34

78

Adjusted EBITDA

$

73,395

$

67,411

$

184,081

$

169,379

Non-GAAP Net Income and Non-GAAP Diluted Income Per Share

The Company believes the presentation of non-GAAP net income and non-GAAP diluted income per share information that excludes amortization of intangible assets and loss on disposal of fixed assets allows investors to develop a more meaningful understanding of the Company's performance over time.  Accordingly, for the three and six months ended June 30, 2026 and 2025, the table below provides reconciliations of these non-GAAP items to GAAP net income and GAAP diluted income per share, respectively:

Three Months Ended

Six Months Ended

June 30, 

June 30, 

2026

2025

2026

2025

(Unaudited, in thousands except per share data)

GAAP Net income

$

45,852

$

41,546

$

121,200

$

113,164

Plus: Amortization of intangible assets

2,105

2,105

4,210

4,210

Plus: Loss on disposal of fixed assets

23

62

34

78

Less: Income tax effects of adjustments (1)

(525)

(531)

(1,016)

(974)

As Adjusted, Non-GAAP Net income

$

47,455

$

43,182

$

124,428

$

116,478

GAAP Diluted income per share

$

1.75

$

1.48

$

4.57

$

4.00

Plus: Amortization of intangible assets (2)

0.06

0.05

0.12

0.12

Plus: Loss on disposal of fixed assets (3)

0.00

0.00

0.00

0.00

As Adjusted, Non-GAAP Diluted income per share

$

1.81

$

1.53

$

4.69

$

4.12

(1)

The income tax effects of adjustments are based on the effective income tax rate applicable to adjusted (non-GAAP) results.

(2)

The amortization of acquired intangible assets per diluted share is net of an income tax benefit of $0.02 for both of the three months ended June 30, 2026 and 2025, and net of an income tax benefit of $0.04 and $0.03 for the six months ended June 30, 2026 and 2025, respectively.

(3)

The loss on disposal of fixed assets per diluted share is net of an income tax benefit of nil for both of the three months ended June 30, 2026 and 2025 and nil for both of the six months ended June 30, 2026 and 2025.

Investor Relations Contact:
Daniel E. Bachus
Chief Financial Officer
Grand Canyon Education, Inc.
602-639-6648
[email protected]

SOURCE Grand Canyon Education, Inc.

BOISE, Idaho--(BUSINESS WIRE)--Boise Cascade Company’s (Boise Cascade or the Company) (NYSE: BCC) Board of Directors declared a quarterly dividend of $0.23 per share, an increase of $0.01 per share or 5%, to holders of its common stock. The dividend will be paid on September 16, 2026 to stockholders of record on September 1, 2026.

Future dividend declarations, including amount per share, record date and payment date, will be made by the board of directors and will depend upon, among other things, legal capital requirements and surplus, the Company’s future operations and earnings, general financial condition, material cash requirements, restrictions imposed by our revolving credit facility and the indenture governing our senior notes, applicable laws, and other factors as the board of directors may deem relevant.

About Boise Cascade

Boise Cascade is one of the largest U.S. wholesale distributors of building materials and a leading manufacturer of engineered wood products and plywood in North America. Our integrated model and national distribution footprint position us to deliver outstanding service to our customers across a broad range of industry-leading products, including key structural products that we produce. Headquartered in Boise, Idaho, we operate more than 60 distribution and manufacturing facilities strategically located across the U.S. and Canada. Our work is powered by a dedicated team of over 7,500 people. Learn more at www.bc.com.

Forward-Looking Statements

This press release contains statements concerning future events and expectations, including, without limitation, statements relating to the amount, timing and occurrence of future dividends. These statements constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions, or future events or performance, often, but not always, through the use of words or phrases such as "anticipates," "believes," "could," "estimates," "expects," "intends," “outlook,” "potential," "plans," "predicts," "preliminary," "projects," "targets," "may," "may result," or similar expressions, are not statements of historical facts and may be forward-looking. Forward-looking statements are not guarantees of future performance, involve estimates, assumptions, risks, and uncertainties, and may differ materially from actual results, performance, or outcomes. Factors that could cause actual results or outcomes to differ materially from those contained in forward-looking statements include: the commodity nature of a portion of our products and their price movements, which are driven largely by general economic conditions, industry capacity and operating rates, industry cycles that affect supply and demand, and net import and export activity; the highly competitive nature of our industry; declines in demand for our products due to competing technologies or materials, as well as changes in building code provisions; and other factors set forth in Boise Cascade's most recent Annual Report on Form 10-K.

It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects. Forward-looking statements speak only as of the date they are made, and, except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

Arm Holdings PLC (NASDAQ:ARM) remains well positioned to benefit from long-term AI infrastructure growth, according to Citi, which reiterated its ‘Buy’ rating and $300 price target while modestly increasing its fiscal 2027 forecasts following the company's latest quarterly results.

Shares of Arm added more than 7% to trade hands at $241 on Thursday afternoon.

The analysts wrote that the quarter was stronger than expected, with revenue and profit exceeding consensus estimates and second-quarter guidance coming in ahead of Wall Street forecasts.

They added that strength in cloud AI and licensing more than offset a softer handset outlook, which was pressured by demand and product mix.

Reflecting the results, Citi raised its fiscal 2027 revenue estimate by 1% and its EBIT forecast by 4%, although Daswani noted that changes to the firm's longer-term projections remain modest.

The analyst also highlighted management's comments on growing demand for AGI-related CPUs, noting the company increased its addressable market outlook to more than $2 billion and reported improving visibility into that opportunity.

Despite only modest changes to its long-term estimates, Citi maintained its constructive stance on the stock, writing that Arm remains "a key AI infrastructure beneficiary" and that the recent pullback in the shares represents "an enhanced opportunity."

NEWTON, Mass.--(BUSINESS WIRE)--Bright Horizons Family Solutions® Inc. (NYSE: BFAM) today announced financial results for the second quarter of 2026 and provided updated financial guidance for 2026. Bright Horizons is a leading provider of high-quality early education and child care, comprehensive back-up care solutions, and educational advisory services. Our offerings support both working families and employers’ workforce strategies by supporting their employees across life and career stages, and improving employee recruitment, engagement, productivity, retention, and career advancement.

Second Quarter 2026 Highlights (compared to Second Quarter 2025):

Revenue of $779 million (increase of 7%) Income from operations of $80 million (decrease of 7%) Net income of $41 million and diluted earnings per common share of $0.79 (decreases of 26% and 17%, respectively) Non-GAAP financial measures

Adjusted EBITDA* of $131 million (increase of 13%) Adjusted income from operations* of $99 million (increase of 15%) Adjusted net income* of $66 million and diluted adjusted earnings per common share* of $1.28 (increases of 8% and 20%, respectively) “Our second quarter performance was solid, with 7% revenue growth and 20% adjusted EPS growth,” said Stephen Kramer, Chief Executive Officer. “Back-up care revenue grew 19% as we entered the summer with strong utilization, while full service delivered another quarter of solid operating margin expansion. Our differentiated employer-centric model and singular focus on quality continue to drive strong financial results and position us to deepen our impact for the families and employers we serve.”

Second Quarter 2026 Results

Revenue increased by $47.6 million, or 7%, to $779.2 million in the second quarter of 2026 from the second quarter of 2025, primarily due to growth in back-up care and full service center-based child care, partially offset by the reductions in revenue from centers that have closed over the last 12 months.

Income from operations was $79.8 million for the second quarter of 2026 compared to $86.1 million for the second quarter of 2025, a decrease of 7%. The decrease in income from operations is primarily related to impairment losses of $19.1 million related to centers in certain markets, partially offset by increased service levels and contributions from our back-up care segment. Net income was $40.6 million for the second quarter of 2026 compared to $54.8 million for the second quarter of 2025, a decrease of 26%, due to the decrease in income from operations noted above, a higher effective tax rate and higher interest expense. Diluted earnings per common share was $0.79 for the second quarter of 2026 compared to $0.95 for the second quarter of 2025.

In the second quarter of 2026, adjusted EBITDA* increased by $14.9 million, or 13%, to $130.6 million, and adjusted income from operations* increased by $12.9 million, or 15%, to $99.0 million from the second quarter of 2025, primarily due to increased service levels and contributions from the back-up care segment. Adjusted net income* was $66.3 million, an increase from adjusted net income of $61.5 million in the same period in the prior year, as a result of the increase in adjusted income from operations noted above partially offset by higher interest expense and an increase to the adjusted effective tax rate. Diluted adjusted earnings per common share* was $1.28 for the second quarter of 2026 compared to $1.07 for the second quarter of 2025.

As of June 30, 2026, the Company operated 988 early education and child care centers with the capacity to serve approximately 112,500 children and their families.

*Adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share are financial measures that are not calculated in accordance with generally accepted accounting principles in the United States (“GAAP”), which are commonly referred to as “non-GAAP financial measures.” Adjusted EBITDA represents EBITDA (which is net income, as determined in accordance with GAAP, before interest expense, income tax expense, depreciation, and amortization) adjusted to exclude stock-based compensation expense, impairment losses, and, at times, non-recurring costs, such as debt refinancing costs, lease termination costs, and transaction costs. Adjusted income from operations represents income from operations, as determined in accordance with GAAP, adjusted to exclude impairment losses, and, at times, non-recurring costs, such as debt refinancing costs, lease termination costs, and transaction costs. Adjusted net income represents net income, as determined in accordance with GAAP, adjusted to exclude amortization, stock-based compensation expense, impairment losses, debt refinancing costs and, at times, non-recurring costs, such as lease termination costs and transaction costs, and the income tax provision (benefit) thereon. Diluted adjusted earnings per common share is calculated using adjusted net income. These non-GAAP financial measures are more fully described and are reconciled from the respective measures determined under GAAP in “Presentation of Non-GAAP Financial Measures” and the attached table “Bright Horizons Family Solutions Inc. Non-GAAP Reconciliations,” respectively.

Balance Sheet and Liquidity

At June 30, 2026, the Company had $163.7 million of cash and cash equivalents and $520.1 million available for borrowing under our revolving credit facility. In the six months ended June 30, 2026, we generated $202.8 million of cash from operations, compared to $220.4 million for the same period in 2025, repurchased approximately 6.6 million shares totaling $473.2 million compared to approximately 0.5 million shares totaling $60.7 million for the same period in the prior year, and made net investments totaling $39.4 million, compared to $38.0 million for the same period in the prior year. On June 1, 2026, the Company amended its existing senior secured credit facilities to, among other changes, issue $375 million of a term loan A facility as well as increase the borrowing capacity of its revolving credit facility from $900 million to $1.0 billion.

2026 Outlook

Based on current trends and expectations, we currently expect fiscal year 2026 revenue to be in the range of $3.085 billion to $3.115 billion and diluted adjusted earnings per common share to be in the range of $5.05 to $5.15. The Company will provide additional information on its outlook during its earnings conference call.

Conference Call

Bright Horizons Family Solutions will host an investor conference call today at 5:00 pm ET to discuss the results for the second quarter of 2026, as well as the Company’s updated business outlook and strategy. Interested parties are invited to listen to the conference call by dialing 1-844-539-3703, or for international callers, 1-412-652-1273, and asking for the Bright Horizons Family Solutions conference call moderated by Chief Executive Officer Stephen Kramer. Replays of the entire call will be available through August 13, 2026 at 1-844-512-2921, or for international callers, at 1-412-317-6671, conference ID #13758193. A link to the audio webcast of the conference call and a copy of this press release are also available through the Investor Relations section of the Company’s web site, investors.brighthorizons.com.

Forward-Looking Statements

This press release includes forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company’s actual results may vary significantly from the results anticipated in these forward-looking statements, which can generally be identified by the use of forward-looking terminology, including the terms “believes,” “expects,” “may,” “will,” “should,” “seeks,” “projects,” “approximately,” “intends,” “plans,” “estimates” or “anticipates,” or, in each case, their negatives or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, including statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, operating expectations, execution and delivery of our services and solutions, our model, business trends, value and quality of our service offerings, market penetration, our future growth opportunities, enrollment levels and trends in jurisdictions, utilization of services, margins, back-up care contributions, our investments, long-term growth strategy, cash flows, estimated effective tax rate, tax expense, our future business and financial performance, client partners and relationships, use and impact of our services, share repurchase activity and our 2026 financial guidance. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The Company believes that these risks and uncertainties include, but are not limited to, changes in the demand for child care, dependent care and other workplace solutions, including variations in enrollment trends and lower than expected demand from employer sponsor clients as well as variations in workforce demographics and work environments; the constrained labor market for teachers and staff and ability to hire and retain talent, including the impact of increased compensation and labor costs; the availability or lack of government support programs, and the impact of available government child care benefit programs; our ability to respond to changing client and customer needs; competition in our industry; the possibility that acquisitions may disrupt our operations and expose us to additional risk; our ability to pass on our increased costs; our indebtedness and the terms of such indebtedness; our ability to withstand seasonal fluctuations in the demand for our services; our ability to implement our growth strategies successfully; our ability to close underperforming centers; changes in general economic, political, business and financial market conditions and other macroeconomic events and uncertainty, including the impact of inflation and interest rate fluctuations; fluctuations in currency exchange rates; the effects of a cyber-attack, data breach or other security incident on our information technology system or software or those of our third party vendors; changes in tax rates or policies; damage or harm to our brand or reputation, including as a result of recent incidents and media coverage; outcome of litigation, legal matters and regulatory investigations; insurance risks; changes in laws and regulations; and other risks and uncertainties more fully described in the “Risk Factors” section of our Annual Report on Form 10-K filed on February 26, 2026, and other factors disclosed from time to time in our other filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the time of this release and we do not undertake to publicly update or revise them, whether as a result of new information, future events or otherwise, except as required by law.

Presentation of Non-GAAP Financial Measures

In addition to the results provided in accordance with GAAP throughout this press release, the Company has provided certain non-GAAP financial measures that present operating results on a basis adjusted for certain items. The Company uses these non-GAAP financial measures as key performance indicators for the purpose of evaluating performance internally, and in connection with determining incentive compensation for Company management, including executive officers. Adjusted EBITDA is also used in connection with the determination of certain ratio requirements under our credit agreement. We believe that these non-GAAP financial measures provide investors with useful information with respect to our historical operations. These non-GAAP financial measures are not intended to replace, and should not be considered superior to, the presentation of our financial results in accordance with GAAP. The use of the terms adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share may differ from similar measures reported by other companies and may not be comparable to other similarly titled measures.

With respect to our outlook for diluted adjusted earnings per common share, we do not provide the most directly comparable GAAP financial measure or corresponding reconciliation to such GAAP financial measure on a forward-looking basis. We are unable to predict with reasonable certainty and without unreasonable effort certain items such as the timing and amount of net excess income tax benefits or shortfalls, future impairments, lease termination costs, transaction costs, and other non-recurring costs, as well as gains or losses from the early retirement of debt and the outcome from legal proceedings. These items are uncertain, depend on various factors outside our management’s control, and could significantly impact, either individually or in the aggregate, our future period earnings per common share as calculated and presented in accordance with GAAP.

For more information regarding adjusted EBITDA, adjusted income from operations, adjusted net income and diluted adjusted earnings per common share, refer to the reconciliation of GAAP financial measures to the non-GAAP financial measures in the attached table “Bright Horizons Family Solutions Inc. Non-GAAP Reconciliations.”

About Bright Horizons Family Solutions Inc.

Bright Horizons® is a leading provider of high-quality early education and child care, back-up care, and workforce education services. For 40 years, we have partnered with employers to support workforces by providing services that help working families and employees thrive personally and professionally. Bright Horizons operates approximately 1,000 early education and child care centers in the United States, the United Kingdom, the Netherlands, Australia and India, and serves more than 1,450 of the world’s leading employers. Bright Horizons’ early education and child care centers, back-up child and elder care, and workforce education programs help employees succeed at each life and career stage. For more information, go to www.brighthorizons.com.

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share data)

(Unaudited)

  Three Months Ended June 30,

2026

%

2025

%

Revenue

$

779,178

100.0

%

$

731,570

100.0

%

Cost of services

590,215

75.7

%

549,020

75.0

%

Gross profit

188,963

24.3

%

182,550

25.0

%

Selling, general and administrative expenses

108,002

13.9

%

94,834

13.0

%

Amortization of intangible assets

1,144

0.2

%

1,664

0.2

%

Income from operations

79,817

10.2

%

86,052

11.8

%

Interest expense — net

(14,023

)

(1.8

)%

(10,555

)

(1.5

)%

Income before income tax

65,794

8.4

%

75,497

10.3

%

Income tax expense

(25,159

)

(3.2

)%

(20,722

)

(2.8

)%

Net income

$

40,635

5.2

%

$

54,775

7.5

%

Earnings per common share:

Common stock — basic

$

0.79

$

0.96

Common stock — diluted

$

0.79

$

0.95

Weighted average common shares outstanding:

Common stock — basic

51,538,729

57,255,841

Common stock — diluted

51,757,065

57,713,111

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share data)

(Unaudited)

  Six Months Ended June 30,

2026

%

2025

%

Revenue

$

1,491,400

100.0

%

$

1,397,097

100.0

%

Cost of services

1,138,947

76.4

%

1,058,810

75.8

%

Gross profit

352,453

23.6

%

338,287

24.2

%

Selling, general and administrative expenses

205,355

13.8

%

186,695

13.4

%

Amortization of intangible assets

2,332

0.1

%

3,268

0.2

%

Income from operations

144,766

9.7

%

148,324

10.6

%

Interest expense — net

(26,045

)

(1.7

)%

(20,906

)

(1.5

)%

Income before income tax

118,721

8.0

%

127,418

9.1

%

Income tax expense

(43,978

)

(3.0

)%

(34,594

)

(2.5

)%

Net income

$

74,743

5.0

%

$

92,824

6.6

%

Earnings per common share:

Common stock — basic

$

1.41

$

1.62

Common stock — diluted

$

1.40

$

1.61

Weighted average common shares outstanding:

Common stock — basic

52,938,352

57,319,814

Common stock — diluted

53,230,622

57,831,930

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

  June 30, 2026

December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$

163,691

$

140,091

Accounts receivable — net

208,829

293,983

Prepaid expenses and other current assets

92,530

69,899

Total current assets

465,050

503,973

Fixed assets — net

559,728

574,200

Goodwill

1,818,900

1,824,175

Other intangible assets — net

191,366

193,452

Operating lease right-of-use assets

636,188

682,069

Other assets

118,818

111,734

Total assets

$

3,790,050

$

3,889,603

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Current portion of long-term debt

$

9,375

$

—

Current portion of revolving credit facility

205,953

199,552

Accounts payable and accrued expenses

310,318

292,812

Current portion of operating lease liabilities

110,405

110,229

Deferred revenue

287,695

330,647

Other current liabilities

47,926

32,925

Total current liabilities

971,672

966,165

Long-term debt — net

1,072,058

747,614

Operating lease liabilities

656,996

702,845

Other long-term liabilities

122,123

118,815

Deferred income taxes

23,682

14,873

Total liabilities

2,846,531

2,550,312

Total stockholders’ equity

943,519

1,339,291

Total liabilities and stockholders’ equity

$

3,790,050

$

3,889,603

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

  Six Months Ended June 30,

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

74,743

$

92,824

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

Depreciation and amortization

47,802

44,609

Impairment losses and other non-cash items

22,934

856

Stock-based compensation expense

14,456

14,986

Deferred income taxes

8,083

5,175

Changes in assets and liabilities

34,774

61,924

Net cash provided by operating activities

202,792

220,374

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of fixed assets — net

(39,081

)

(34,043

)

Proceeds from debt securities and other investments

8,896

7,503

Purchases of debt securities and other investments

(9,219

)

(6,322

)

Payments and settlements for acquisitions — net of cash acquired

—

(5,106

)

Net cash used in investing activities

(39,404

)

(37,968

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Revolving credit facility — net

(31,071

)

401,500

Borrowings of long-term debt — net of issuance costs

373,748

—

Principal payments of long-term debt

—

(451,000

)

Payments of revolving credit facility debt issuance costs

(334

)

(2,878

)

Purchase of treasury stock

(471,531

)

(60,330

)

Taxes paid related to the net share settlement of stock options and restricted stock

(7,817

)

(13,609

)

Proceeds from issuance of common stock upon exercise of options

—

10,230

Net cash used in financing activities

(137,005

)

(116,087

)

Effect of exchange rates on cash, cash equivalents and restricted cash

(1,744

)

7,045

Net increase in cash, cash equivalents and restricted cash

24,639

73,364

Cash, cash equivalents and restricted cash — beginning of period

143,158

123,715

Cash, cash equivalents and restricted cash — end of period

$

167,797

$

197,079

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

SEGMENT INFORMATION

(In thousands)

(Unaudited)

  Full service

center-based

child care

Back-up care

Educational

advisory services

Total

Three Months Ended June 30, 2026

Revenue

$

557,297

$

193,586

$

28,295

$

779,178

Income from operations

25,060

50,278

4,479

79,817

Adjusted income from operations (1)

44,198

50,278

4,479

98,955

As a percentage of revenue

8

%

26

%

16

%

13

%

Three Months Ended June 30, 2025

Revenue

$

540,267

$

162,670

$

28,633

$

731,570

Income from operations

40,280

40,923

4,849

86,052

Adjusted income from operations

40,280

40,923

4,849

86,052

As a percentage of revenue

7

%

25

%

17

%

12

%

Full service

center-based

child care

Back-up care

Educational

advisory services

Total

Six Months Ended June 30, 2026

Revenue

$

1,097,931

$

338,255

$

55,214

$

1,491,400

Income from operations

61,965

75,850

6,951

144,766

Adjusted income from operations (1)

81,103

75,850

6,951

163,904

As a percentage of revenue

7

%

22

%

13

%

11

%

Six Months Ended June 30, 2025

Revenue

$

1,050,814

$

291,282

$

55,001

$

1,397,097

Income from operations

73,534

67,307

7,483

148,324

Adjusted income from operations

73,534

67,307

7,483

148,324

As a percentage of revenue

7

%

23

%

14

%

11

%

BRIGHT HORIZONS FAMILY SOLUTIONS INC.

NON-GAAP RECONCILIATIONS

(In thousands, except share data)

(Unaudited)

  Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net income

$

40,635

$

54,775

$

74,743

$

92,824

Interest expense — net

14,023

10,555

26,045

20,906

Income tax expense

25,159

20,722

43,978

34,594

Depreciation

23,425

21,070

45,470

41,341

Amortization of intangible assets

1,144

1,664

2,332

3,268

EBITDA

104,386

108,786

192,568

192,933

As a percentage of revenue

13

%

15

%

13

%

14

%

Additional adjustments:

Impairment losses (a)

19,138

—

19,138

—

Stock-based compensation expense (b)

7,032

6,829

14,456

14,986

Total adjustments

26,170

6,829

33,594

14,986

Adjusted EBITDA

$

130,556

$

115,615

$

226,162

$

207,919

As a percentage of revenue

17

%

16

%

15

%

15

%

Income from operations

$

79,817

$

86,052

$

144,766

$

148,324

Impairment losses (a)

19,138

—

19,138

—

Adjusted income from operations

$

98,955

$

86,052

$

163,904

$

148,324

As a percentage of revenue

13

%

12

%

11

%

11

%

Net income

$

40,635

$

54,775

$

74,743

$

92,824

Income tax expense

25,159

20,722

43,978

34,594

Income before income tax

65,794

75,497

118,721

127,418

Amortization of intangible assets

1,144

1,664

2,332

3,268

Impairment losses (a)

19,138

—

19,138

—

Stock-based compensation expense (b)

7,032

6,829

14,456

14,986

Other interest costs (c)

—

551

—

551

Adjusted income before income tax

93,108

84,541

154,647

146,223

Adjusted income tax expense (d)

(26,769

)

(23,037

)

(43,692

)

(40,000

)

Adjusted net income

$

66,339

$

61,504

$

110,955

$

106,223

As a percentage of revenue

9

%

8

%

7

%

8

%

Weighted average common shares outstanding — diluted

51,757,065

57,713,111

53,230,622

57,831,930

Diluted adjusted earnings per common share (e)

$

1.28

$

1.07

$

2.08

$

1.84

(a)

Impairment losses represent charges related to long-lived assets and goodwill arising from center closures, changes in market assumptions and reduced operating performance at certain centers. For the three and six months ended June 30, 2026, impairment losses totaled $19.1 million related to the full service center-based child care segment, of which $12.8 million was recorded to cost of services and $6.3 million was recorded to selling, general and administrative expenses.

(b)

Stock-based compensation expense represents non-cash stock-based compensation expense in accordance with Accounting Standards Codification Topic 718, Compensation-Stock Compensation.

(c)

Other interest costs in the three and six months ended June 30, 2025 consist of costs incurred in connection with the April 2025 debt refinancing of $0.6 million, which are included in interest expense on the statement of income.

(d)

Adjusted income tax expense represents income tax expense calculated on adjusted income before income tax at an effective tax rate of approximately 29% and 28% for the three and six months ended June 30, 2026, respectively, and of approximately 27% for both the three and six months ended June 30, 2025. The jurisdictional mix of the expected adjusted income before income tax for the full year will affect the estimated effective tax rate for the year.

(e)

The sum of the quarterly earnings per share amounts does not equal the year-to-date earnings per share amounts due to the independent calculation of the weighted-average number of common shares outstanding for each discrete period, as well as rounding. This variance is primarily due to the seasonal fluctuations in our net income and changes in the weighted-average shares outstanding, including the cumulating effect of treasury repurchases during individual quarters.

More News From Bright Horizons Family Solutions Inc.

Daily Active Uniques (“DAUq”) increased 18% year-over-year to 130.3 million

Weekly Active Uniques (“WAUq”) increased 24% year-over-year to 514.6 million, crossing half a billion

Revenue of $805 million grew 61% year-over-year. 8th consecutive quarter over 60%

Net income of $253 million, 31% of revenue, and Diluted EPS of $1.25, both up over 2x year-over-year

Adj. EBITDA1 of $343 million, 43% of revenue, up 106% year-over-year

Operating cash flow of $262 million, 33% of revenue, up 135% year-over-year

SAN FRANCISCO--(BUSINESS WIRE)--Reddit, Inc. (NYSE: RDDT) today announced financial results for the quarter ended June 30, 2026. Reddit’s complete financial results and management commentary can be found in its shareholder letter on Reddit’s Investor Relations website at https://investor.redditinc.com.

“In an increasingly automated web, the value of real human perspective has never been higher. Reddit’s commercial momentum reflects that,” said Steve Huffman, Founder and CEO of Reddit. “Crossing $1 million in revenue per employee and maintaining eight consecutive quarters of over 60% revenue growth shows the strength of our community model and the value we deliver to advertisers.”

Total revenue increased 61% year-over-year to $805 million, Ad revenue increased 64% year-over-year to $762 million, and Other revenue increased 24% year-over-year to $43 million Gross margin was 91.3%, as compared to 90.8% in the prior year, up 50 bps year-over-year Net income was $253 million, an improvement of $164 million from the prior year and more than doubling year-over-year Adjusted EBITDA1 was $343 million, an improvement of $176 million from the prior year and more than doubling year-over-year Operating cash flow was $262 million, an improvement of $151 million from the prior year and more than doubling year-over-year Free Cash Flow1 was $261 million, an improvement of $150 million from the prior year and more than doubling year-over-year Basic and diluted earnings per share (“EPS”) were $1.31 and $1.25, more than doubling year-over-year Total fully diluted shares outstanding were 207.0 million as of June 30, 2026, up 0.2% from the prior year We repurchased 1.5 million shares of our Class A common stock during the quarter for a total of $235 million at an average price per share of $157.57 Second Quarter 2026 Financial Highlights

Three months ended

June 30,

(in millions, except percentages and per share amounts; unaudited)

2026

2025

% Change

Revenue

$

805

$

500

61

%

U.S.

$

638

$

409

56

%

International

$

167

$

91

84

%

GAAP gross margin

91.3

%

90.8

%

Net income

$

253

$

89

183

%

Net margin

31.4

%

17.9

%

Net income per share

Basic

$

1.31

$

0.48

173

%

Diluted

$

1.25

$

0.45

178

%

Adjusted EBITDA*

$

343

$

167

106

%

Adjusted EBITDA margin*

42.6

%

33.4

%

Net cash provided by (used in) operating activities

$

262

$

111

135

%

Free Cash Flow*

$

261

$

111

135

%

Cash, cash equivalents, and marketable securities

$

2,786

*The definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow can be found in the Use of Non-GAAP Financial Measures section of this release. A reconciliation of non-GAAP financial measures to the most directly comparable U.S. GAAP measure can be found on pages 10-11.

Financial Outlook

The guidance provided below is based on Reddit’s current estimates and is not a guarantee of future performance. This guidance is subject to significant risks and uncertainties that could cause actual results to differ materially, including the risk factors discussed in Reddit’s reports on file with the Securities and Exchange Commission (the “SEC”). Reddit undertakes no duty to update any forward-looking statements or estimates, except as required by applicable law.

As we look ahead, we will share our internal thoughts on revenue and Adjusted EBITDA for the third quarter.

In the third quarter of 2026, we estimate:

Revenue in the range of $860 million to $870 million Adjusted EBITDA2 in the range of $385 million to $395 million Earnings Conference Call Information and Community Update

Reddit will host a conference call to discuss the results for the second quarter of 2026 on Thursday, July 30, 2026, at 1:30 p.m. PT / 4:30 p.m. ET. A live webcast of the call can be accessed on Reddit’s Investor Relations website at https://investor.redditinc.com and investor relations subreddit, r/RDDT, at https://www.reddit.com/r/RDDT/. A replay of the webcast and transcript will be available on the same websites following the conclusion of the conference call.

Reddit will solicit questions from the community in the investor relations subreddit, r/RDDT, at https://www.reddit.com/r/RDDT/ on Thursday, July 30, 2026, after the market closes, and post responses following the earnings call at Reddit’s Investor Relations website at https://investor.redditinc.com and r/RDDT at https://www.reddit.com/r/RDDT/.

Reddit uses the investor relations page on its website https://investor.redditinc.com, user accounts of Reddit's Chief Executive Officer, Steve Huffman (u/spez); Reddit's Chief Operating Officer, Jen Wong (u/adsjunkie); and Reddit's Chief Financial Officer, Drew Vollero (u/TimingandLuck), as well as the subreddits r/RDDT and r/reddit, available at https://www.reddit.com/r/RDDT/ and https://www.reddit.com/r/reddit/, respectively, as means of disclosing material non-public information and for complying with its disclosure obligation under Regulation FD.

Notes

1 The definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow can be found in the Use of Non-GAAP Financial Measures section of this release. A reconciliation of non-GAAP financial measures to the most directly comparable U.S. GAAP measure can be found on pages 10-11.
2 We have not provided a reconciliation to the forward-looking U.S. GAAP equivalent measures for our non-GAAP guidance due to uncertainty regarding, and the potential variability of, reconciling items. Therefore, a reconciliation of these non-GAAP guidance measures to their corresponding U.S. GAAP guidance measures is not available without unreasonable effort.

About Reddit

Reddit is a community of communities. Built on shared interests and passions, it is home to the most open and authentic conversations online. Every day, millions of people post, vote, comment, and search for answers across nearly every topic imaginable, and brands build trusted relationships with their audiences. With 26+ billion posts and comments and more than 130 million daily active uniques, Reddit is one of the internet’s largest sources of information. Learn more at www.redditinc.com. The Reddit app is available on the App Store and Google Play.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Reddit's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Reddit's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding Reddit’s future financial and operating performance, and GAAP and non-GAAP guidance. Reddit's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including those more fully described under the caption “Risk Factors” and elsewhere in documents that Reddit files with the SEC from time to time, including Reddit’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, which is being filed with the SEC at or around the date hereof. The forward-looking statements in this release are based on information available to Reddit as of the date hereof, and Reddit undertakes no obligation to update any forward-looking statements, except as required by law.

A Note About Metrics

We define a daily active unique (“DAUq”) as a user whom we can identify with a unique identifier who has visited a page on the Reddit website, www.reddit.com, or opened a Reddit application at least once during a 24-hour period. Average DAUq for a particular period is calculated by adding the number of DAUq on each day of that period and dividing that sum by the number of days in that period.

We define a weekly active unique (“WAUq”) as a user whom we can identify with a unique identifier who has visited a page on the Reddit website, www.reddit.com, or opened a Reddit application at least once during a trailing seven-day period. Average quarterly WAUq for a particular period is calculated by adding the number of WAUq on each day of that period and dividing that sum by the number of days in that period.

We define average revenue per unique (“ARPU”) as quarterly revenue in a given geography divided by the average DAUq in that geography. For the purposes of calculating ARPU, advertising revenue in a given geography is based on the geographic location in which advertising impressions are delivered, as this approximates revenue based on user activity, while other revenue in a given geography is based on the billing address of the customer.

Use of Non-GAAP Financial Measures

We use certain non-GAAP financial measures to supplement our consolidated financial statements, which are presented in accordance with U.S. GAAP, to evaluate our core operating performance. These non-GAAP financial measures include Adjusted EBITDA, Adjusted EBITDA margin, Free Cash Flow, and Free Cash Flow margin. We use these non-GAAP financial measures to facilitate reviews of our operational performance and as a basis for strategic planning. By excluding certain items that are non-recurring or not reflective of the performance of our normal course of business, we believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance. Accordingly, we believe these non-GAAP financial measures are useful to investors and others because they allow investors to supplement their understanding of our financial trends and evaluate our ongoing and future performance in the same manner as management. However, there are a number of limitations related to the use of non-GAAP financial measures as they reflect the exercise of judgment by our management about which expenses are included or excluded in determining these non-GAAP measures. These non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with U.S. GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

A reconciliation is provided below for each historical non-GAAP financial measure to the most directly comparable financial measure stated in accordance with U.S. GAAP. Reddit encourages investors to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures, and not to rely on any single financial measure to evaluate Reddit’s business. We have not provided a reconciliation to the forward-looking GAAP equivalent measures for our non-GAAP guidance due to uncertainty regarding, and the potential variability of, reconciling items. Therefore, a reconciliation of these non-GAAP guidance measures to their corresponding GAAP guidance measures is not available without unreasonable effort.

Adjusted EBITDA is defined as net income excluding interest (income) expense, net, income tax expense (benefit), depreciation and amortization, stock-based compensation expense and related taxes, other (income) expense, net, and certain other non-recurring or non-cash items impacting net income that we do not consider indicative of our ongoing business performance. Other (income) expense, net consists primarily of realized gains and losses on sales of marketable securities, foreign currency transaction gains and losses, and other income and expense that are not indicative of our core operating performance. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue. We consider the exclusion of certain non-recurring or non-cash items in calculating Adjusted EBITDA and Adjusted EBITDA margin to provide a useful measure for investors and others to evaluate our operating results in the same manner as management.

Free Cash Flow represents net cash provided by (used in) operating activities less purchases of property and equipment. Free Cash Flow margin is defined as Free Cash Flow divided by revenue. We believe that Free Cash Flow is useful to investors as a liquidity measure because it measures our ability to generate or use cash. Once our business needs and obligations are met, cash can be used to maintain a strong balance sheet and invest in future growth. Additionally, we believe that Free Cash Flow is an important measure since we use third-party infrastructure partners to host our services and therefore we do not incur significant capital expenditures to support revenue generating activities.

  Reddit, Inc.

Key Operating Metrics by Geography

(in millions, except percentages and ARPU)

(unaudited)

  Three months ended

June 30,

Six months ended

June 30,

2026

2025

% Change

2026

2025

% Change

Revenue: Global

$

804.9

$

499.6

61

%

$

1,468.3

$

892.0

65

%

Revenue: U.S.

$

638.1

$

408.8

56

%

$

1,163.7

$

722.7

61

%

Revenue: International

$

166.8

$

90.8

84

%

$

304.6

$

169.3

80

%

Three months ended

June 30,

2026

2025

% Change

DAUq: Global

130.3

110.4

18

%

DAUq: U.S.

53.2

50.3

6

%

DAUq: International

77.1

60.1

28

%

Logged-in DAUq: Global

52.6

49.3

7

%

Logged-in DAUq: U.S.

23.1

22.9

1

%

Logged-in DAUq: International

29.5

26.4

12

%

Logged-out DAUq: Global

77.7

61.1

27

%

Logged-out DAUq: U.S.

30.1

27.4

10

%

Logged-out DAUq: International

47.6

33.7

41

%

WAUq: Global

514.6

416.4

24

%

WAUq: U.S.

197.2

181.0

9

%

WAUq: International

317.4

235.4

35

%

ARPU: Global

$

6.18

$

4.53

36

%

ARPU: U.S.

$

11.85

$

7.87

51

%

ARPU: International

$

2.26

$

1.73

31

%

  Reddit, Inc. Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)

  Three months ended

June 30,

Six months ended

June 30,

2026

2025

2026

2025

Revenue

$

804,905

$

499,627

$

1,468,316

$

891,988

Costs and expenses:

Cost of revenue

70,308

45,900

126,575

82,989

Research and development

231,276

196,610

438,522

387,881

Sales and marketing

195,897

120,619

347,369

211,304

General and administrative

75,708

68,787

141,222

138,200

Total costs and expenses

573,189

431,916

1,053,688

820,374

Income from operations

231,716

67,711

414,628

71,614

Other income (expense), net

25,119

21,147

47,935

41,681

Income before income taxes

256,835

88,858

462,563

113,295

Income tax expense (benefit)

3,987

(439

)

5,734

(2,160

)

Net income

$

252,848

$

89,297

$

456,829

$

115,455

Net income per share attributable to Class A and Class B common stock

Basic

$

1.31

$

0.48

$

2.38

$

0.63

Diluted

$

1.25

$

0.45

$

2.26

$

0.58

Weighted-average shares used to compute net income per share attributable to common stockholders

Basic

192,345,684

185,437,777

191,932,329

183,730,992

Diluted

202,029,721

199,522,433

202,326,864

200,681,458

  Reddit, Inc. Consolidated Balance Sheets

(in thousands)

(unaudited)

  June 30,
2026

December 31,
2025

Assets

Current assets

Cash and cash equivalents

$

1,486,838

$

953,569

Marketable securities

1,299,519

1,523,242

Accounts receivable, net

650,098

590,162

Prepaid expenses and other current assets

105,210

69,012

Total current assets

3,541,665

3,135,985

Property and equipment, net

11,981

12,710

Operating lease right-of-use assets, net

18,411

20,788

Intangible assets, net

10,565

15,521

Goodwill

42,174

42,174

Other noncurrent assets

11,809

11,995

Total assets

$

3,636,605

$

3,239,173

Liabilities and stockholders’ equity

Current liabilities

Accounts payable

$

89,144

$

62,929

Operating lease liabilities

7,783

7,023

Accrued expenses and other current liabilities

240,822

201,331

Total current liabilities

337,749

271,283

Operating lease liabilities, noncurrent

13,084

16,191

Other noncurrent liabilities

72

22,661

Total liabilities

350,905

310,135

Commitments and contingencies

Stockholders’ equity:

Preferred stock

—

—

Class A common stock

14

14

Class B common stock

5

5

Class C common stock

—

—

Additional paid-in capital

3,504,664

3,595,772

Accumulated other comprehensive income (loss)

(4,695

)

4,364

Accumulated deficit

(214,288

)

(671,117

)

Total stockholders’ equity

3,285,700

2,929,038

Total liabilities and stockholders’ equity

$

3,636,605

$

3,239,173

  Reddit, Inc. Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

  Three months ended

June 30,

Six months ended

June 30,

2026

2025

2026

2025

Cash flows from operating activities

Net income

$

252,848

$

89,297

$

456,829

$

115,455

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Depreciation and amortization

4,258

3,934

8,468

7,897

Non-cash operating lease cost

1,743

1,514

3,419

2,982

Amortization of premium (accretion of discount) on marketable securities, net

(2,799

)

(6,691

)

(7,096

)

(15,575

)

Stock-based compensation expense

100,952

89,070

169,288

174,484

Other adjustments

85

97

(606

)

(41

)

Changes in operating assets and liabilities:

Accounts receivable

(127,228

)

(81,116

)

(59,271

)

(57,757

)

Prepaid expenses and other assets

(12,454

)

(9,352

)

(36,206

)

(26,358

)

Operating lease right-of-use assets and liabilities

(1,575

)

(1,589

)

(3,390

)

(3,369

)

Accounts payable

37,020

19,991

26,037

18,945

Accrued expenses and other liabilities

9,026

6,176

16,657

22,246

Net cash provided by (used in) operating activities

$

261,876

$

111,331

$

574,129

$

238,909

Cash flows from investing activities

Purchases of property and equipment

(1,134

)

(505

)

(2,224

)

(1,484

)

Purchases of marketable securities

(311,978

)

(556,457

)

(676,907

)

(1,061,303

)

Maturities of marketable securities

409,247

552,532

883,715

1,017,594

Proceeds from sale of marketable securities

—

—

17,989

12,372

Other investing activities

(1,421

)

2,354

(3,037

)

3,243

Net cash provided by (used in) investing activities

$

94,714

$

(2,076

)

$

219,536

$

(29,578

)

Cash flows from financing activities

Proceeds from exercise of employee stock options

5,037

4,303

9,936

14,487

Taxes paid related to net share settlement of restricted stock units

(14,546

)

(15,225

)

(30,742

)

(51,900

)

Repurchases of Class A common stock

(234,591

)

—

(239,590

)

—

Net cash provided by (used in) financing activities

$

(244,100

)

$

(10,922

)

$

(260,396

)

$

(37,413

)

Net increase (decrease) in cash and cash equivalents

112,490

98,333

533,269

171,918

Cash and cash equivalents at the beginning of the period

1,374,348

635,727

953,569

562,142

Cash and cash equivalents at the end of the period

$

1,486,838

$

734,060

$

1,486,838

$

734,060

  Reddit, Inc. Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin

(in thousands, except percentages)

(unaudited)

  Three months ended
June 30,

Six months ended
June 30,

2026

2025

2026

2025

Net income

$

252,848

$

89,297

$

456,829

$

115,455

Add (deduct):

Interest (income) expense, net

(25,027

)

(21,056

)

(48,912

)

(41,470

)

Income tax expense (benefit)

3,987

(439

)

5,734

(2,160

)

Depreciation and amortization

4,258

3,934

8,468

7,897

Stock-based compensation expense and related taxes

106,836

95,104

185,684

202,509

Other (income) expense, net

(92

)

(91

)

977

(211

)

Adjusted EBITDA

$

342,810

$

166,749

$

608,780

$

282,020

Net margin

31.4

%

17.9

%

31.1

%

12.9

%

Adjusted EBITDA margin

42.6

%

33.4

%

41.5

%

31.6

%

  Reddit, Inc.

Reconciliation of Free Cash Flow and Free Cash Flow Margin

(in thousands, except percentages)

(unaudited)

  Three months ended
June 30,

Six months ended
June 30,

2026

2025

2026

2025

Net cash provided by (used in) operating activities

$

261,876

$

111,331

$

574,129

$

238,909

Less:

Purchases of property and equipment

(1,134

)

(505

)

(2,224

)

(1,484

)

Free Cash Flow

$

260,742

$

110,826

$

571,905

$

237,425

Operating cash flow margin

32.5

%

22.3

%

39.1

%

26.8

%

Free Cash Flow margin

32.4

%

22.2

%

38.9

%

26.6

%

More News From Reddit, Inc.