Market Signal Briefing

Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

The official Dogecoin X account shared a fun fact about the biggest dog cryptocurrency by market capitalization, Dogecoin (DOGE).

The official Dogecoin X account brings attention to the fact that five billion DOGE are minted every year, which keeps Dogecoin's inflation rate declining. It highlights the implication of this: "More DOGE means less hoarding and more spending. Money is for moving, not collecting like rare Pokemon cards."

Fun fact: 5 billion DOGE are minted every year which keeps the inflation rate declining. More DOGE means less hoarding and more spending. Money is for moving, not collecting like rare Pokemon cards.

HOT Stories

— Dogecoin (@dogecoin) February 12, 2026 Dogecoin has a diminished inflation rate as it has a fixed yearly issuance of five billion coins. This annual issuance is needed to pay miners and keep the network secure. The implication of this is that each year, the rate of inflation drops compared to the total supply. Developers say this feature makes Dogecoin the perfect candidate to be used as a currency.

Dogecoin is not meant to be hoarded, as hoarding is a major barrier to a cryptocurrency being used as an actual currency. This set path implies that there is no need for Dogecoin burning, unlike other cryptocurrencies.

You Might Also Like

Dogecoin’s supply is also not unlimited, as it has an absolute limit of issuance per block, per day, per year. The only difference between Dogecoin’s issuance and other coins is that it does not have an end date. Therefore, Dogecoin is only "infinite" over "infinite time." Over a finite time, its issuance remains finite. Developers believe that putting a cap on Dogecoin would render the network insecure and vulnerable to attacks.

Dogecoin priceDogecoin reversed a five-day drop after reaching a low of $0.087 on Feb. 11.  However, the rebound has failed to reach $0.10, with Dogecoin remaining in the $0.09 range.

At the time of writing, Dogecoin was up 0.87% in the last 24 hours to $0.093 and up 3.37% weekly.

If Dogecoin returns above $0.10 from which it turned down on Feb. 6, it might suggest that the bearish momentum is weakening. Dogecoin may then jump toward the barrier at $0.122, which coincides with the daily MA 50.

Alternatively, if the price continues lower, it might drop to the $0.08 level, which is likely to attract buyers. If Dogecoin breaks below $0.08, it might signal the start of fresh selling, and it might fall to $0.06 next.

Bitcoin’s latest bout of selling has a different feel.

Instead of the usual crypto stress signals, panic from small investors, a wave of forced liquidations, or miners dumping coins to pay bills, this time the pressure looks more like portfolio housekeeping by institutions.

As US rate expectations swing and cross‑asset volatility climbs, professional allocators are cutting risk broadly.

In this scenario, Bitcoin is being treated less like a stand‑alone “crypto story” and more like a macro trade that gets trimmed when markets turn defensive.

Institutional de-risking, not retail panic Copy link to section

Several analysts argue that the “unexpected source” of selling is institutional de‑risking.

Markus Thielen of 10x Research has repeatedly pointed to the same setup: higher real yields and sticky inflation reduce the appeal of non‑yielding assets like Bitcoin.

He added that when funds need to lower risk, they sell what they can sell quickly.

In that framework, Bitcoin isn’t being rejected, it’s being managed: cut as part of a broader risk budget when bonds suddenly look more attractive or when equities wobble.

You can see echoes of that in flows data.

CoinShares’ weekly report for Feb. 2 showed digital asset products suffered $1.7 billion of outflows, with sentiment “broadly negative” and outflows led by Bitcoin and Ethereum.

CoinShares’ report described the move as a deterioration in investor sentiment that flipped year-to-date flows negative and reduced assets under management sharply from prior highs.

That matters because the selling from ETFs and institutional vehicles can be mechanical: redemptions force a fund to sell, regardless of whether “crypto Twitter” feels bullish or bearish that day.​

This is also why the pressure can feel persistent.

Retail capitulation often burns hot and fast. Institutional risk-control selling tends to come in waves as managers rebalance, reduce leverage, and meet internal limits.

Read More: Bitcoin stuck near $66K, XRP below $1.40: analysts expect more pain ahead

Why macro signals now matter more than Bitcoin headlines Copy link to section

Standard Chartered’s Geoff Kendrick has been explicit that Bitcoin’s macro sensitivity is back.

In a note cited by multiple outlets, Kendrick warned Bitcoin could test $50,000 before stabilizing, and the bank cut its year‑end 2026 forecast to $100,000 from $150,000.

The bank linked the downgrade to worsening macro conditions, weaker risk appetite, ETF outflows, and fading hopes for near‑term Fed cuts.

Bloomberg also framed the move as an “orderly” decline that looks more like cross‑asset repositioning than a disorderly leverage blow‑up.

CoinShares’ James Butterfill has likewise tied outflows to macro expectations.

In a widely cited CoinShares-based write‑up, Butterfill described large weekly redemptions as being fueled by diminishing hopes for interest rate reductions, adverse price trends, and frustration that digital assets have not benefited from the broader “debasement trade.”

That’s the macro feedback loop in plain terms: if investors think rates stay higher for longer, they cut exposure to assets that rely on liquidity and risk appetite, which include Bitcoin.

BlackRock, the world's largest asset manager, looks set to offload more Bitcoin and Ethereum, following the outflows from its crypto ETFs yesterday. This move comes ahead of another potential partial U.S. government shutdown that could begin tomorrow as today's deadline looms.

Journalist

Posted: February 13, 2026

The Ethereum [ETH] exchange balance continued to dwindle, showing smart market participants were accumulating the altcoin. Since the 11th of February, 100k ETH has been removed from exchanges, AMBCrypto reported.

Crypto analyst and trader Ali Martinez showed that 330,000k ETH, worth over $660 million, were withdrawn from exchanges. This reinforced the holder accumulation idea.

The Ethereum validator entry queue has a 71-day waiting period. Nearly 4.1 million ETH was in the deposit waiting queue, an all-time high.

Together, these data points showed long-term conviction from holders. This conviction is not enough to prop Ethereum prices up. Long-term investors can look to buy at these price levels, but the selling pressure might not be exhausted yet.

Ethereum capitulation is not over In a post on X, the crypto intelligence platform Glassnode observed that the 30-day moving average of spot ETF netflows for both Bitcoin [BTC] and Ethereum has been negative for the past three months. The Open Interest has also fallen significantly.

This was an extended period of negative average flows and highlighted the bearish pressure in the market. Demand has not yet come in, a warning for those looking to buy what feels like a bear market bottom.

There could be more pain ahead.

The ETH Funding Rate has been deeply negative for much of the past two weeks. Santiment pointed out in a post on X that this wave of short positioning was the most extreme it has been since August 2024.

The deeply negative Funding Rate shows that most of the market is positioned bearishly. While this reflects strong conviction on the downside, it also raises the chances of a sharp short squeeze if sentiment shifts.

Digital asset treasuries continued to hold on to the ETH, but only one company was aggressively adding more. Bitmine Immersion Technologies [BMNR] has bought 820k ETH since mid-November.

The adverse market conditions in recent weeks did not halt their buying. AMBCrypto reported that the company added 180k ETH to its holdings in the past 30 days.

This does not guarantee that a market bottom is close. Buyers should beware that bear market bottoms take months to form. Generally, a sharp price drop followed by a V-recovery is not how bear markets end.

Final Thoughts The ETH exodus from exchanges and the long validator deposit queue reflected long-term holder conviction. BMNR was the only DAT to continue buying ETH, while falling funding rates and OI reflected a deep bearish market bias.

14h05 ▪ 5 min read ▪ by James G.

Summarize this article with:

Bitcoin and the broader crypto market posted modest gains over the past 24 hours, even as fresh U.S. labor data complicated expectations for near-term rate cuts. January’s jobs report showed that hiring remained firm, but growth across several sectors appeared restrained. Markets had hoped for weaker data to strengthen the case for monetary easing. Instead, traders were left facing mixed signals.

In brief Realized losses hit $3.2B, marking one of Bitcoin’s largest capitulation events. Futures open interest dropped sharply as traders reduced leverage exposure. Selling pressure came mainly from newer holders, not long-term investors. Rate-cut odds fell to 7% as markets now await key U.S. CPI data. Market Reset? Bitcoin’s Vertical Drop Triggers Historic On-Chain Flush Bitcoin (BTC) rose 1.25% on the day after last week’s sell-offs dragged BTC close to $60,000. Moreover, the fall triggered one of the largest loss events in the asset’s history. On-chain data shows realized losses reached $3.2 billion during the drop, surpassing the losses recorded during the 2022 Terra collapse, according to Glassnode. 

Data platform Checkonchain described the move as a “textbook capitulation event,” marked by rapid selling, heavy volume, and forced exits by low-conviction holders.

Net Realized Profit/Loss (7-day EMA) plunged toward negative $1.5 billion per day, producing one of the deepest downside prints ever recorded for Bitcoin. The move was both sudden and vertical, resembling structural washouts such as June 2022, though larger in nominal dollar terms. 

Coin age data indicate that most of the losses originated from recent buyers, particularly the 2024–2026 cohorts. That pattern suggests newer participants bore the brunt of the selloff.

Historically, loss spikes of this scale have been associated with rapid balance-sheet resets rather than long-term structural breakdowns. Similar events in March 2020 and June 2022 occurred after heavy deleveraging and were later accompanied by relief rallies or extended consolidations. Current market behavior carries similar traits, including forced unwinds and weakened speculative positioning.

Capitulation Confirmed as Derivatives Positioning Unwinds Several structural factors shaped the recent decline:

Net realized losses exceeded $1.5 billion per day at the peak of the move. Selling pressure came mainly from newer holders rather than long-term investors. Leverage across derivatives markets was aggressively reduced. Volumes across spot, futures, options, and ETF markets surged to extreme levels. Derivatives data further support the capitulation narrative. According to CoinGlass, total Bitcoin futures open interest dropped sharply alongside price. After peaking near $100 billion during the rally toward six-figure prices, aggregate open interest rolled over as BTC declined. Both forced liquidations and voluntary long unwinds contributed to the contraction.

Price (tracked in yellow on the chart) and open interest (green) fell together, signaling broad deleveraging rather than fresh short positioning. When open interest rises into weakness, it often points to new bearish bets. 

Instead, traders reduced exposure across the board, clearing excess leverage from the system. Comparable contractions in past cycles marked high-volatility resets before markets found a new equilibrium.

Extreme Fear Returns to Crypto as Bitcoin Attempts Recovery Despite fading hopes for immediate rate cuts, remaining market participants appear reluctant to sell further. Prediction market data shows that the odds of a 25-basis-point cut next month have dropped sharply. 

On Polymarket, expectations fell to 7% from 18%. Kalshi shows a similar decline, from 20% to 7%. Reduced rate-cut expectations typically weigh on risk assets, as higher yields make fixed-income products more attractive.

Still, Bitcoin’s positive reaction suggests that selling pressure may be exhausting itself. Crypto Fear & Greed Index readings recently reached levels not seen since the collapse of FTX in 2022, indicating extreme pessimism.

Attention now turns to the upcoming U.S. Consumer Price Index report. Inflation data could provide clearer guidance on the Federal Reserve’s next steps. For now, markets appear to have completed a rapid reset, leaving traders watching closely for signs of stabilization or renewed volatility.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.

Join the program

A

A

Lien copié

James G.

James Godstime is a crypto journalist and market analyst with over three years of experience in crypto, Web3, and finance. He simplifies complex and technical ideas to engage readers. Outside of work, he enjoys football and tennis, which he follows passionately.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

NEW YORK, Feb. 13, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into PennyMac Financial Services, Inc. (NYSE:PFSI) for potential violations of the federal securities laws.

If you invested in PennyMac, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/pennymac-class-action-lawsuit.

Why is PennyMac Being Investigated for Violations of the Federal Securities Laws?

PennyMac originates and services home mortgages. Recently, PennyMac increased its capacity to originate loans to better retain borrowers seeking to refinance their mortgages—a process known as “recapture” —as interest rates declined. During the relevant period, PennyMac touted the success of its recapture efforts, representing to investors that its recapture rates were improving.

BFA is investigating whether PennyMac misrepresented its ability to recapture customers refinancing their mortgages as interest rates declined.

Why did PennyMac’s Stock Drop?

On January 29, 2026, PennyMac reported disappointing 4Q 2025 financial results. During PennyMac’s earnings call held the same day, PennyMac senior management revealed that although PennyMac had increased its origination capacity to recapture more refinance business, many competitors had also added capacity, creating a highly competitive origination environment that constrained PennyMac’s ability to take advantage of refinance opportunities. This news caused the price of PennyMac stock to decline more than 37%, from $140.70 per share at the close of trading on January 29, 2026, to as low as $93.50 per share on January 30, 2026.

Click here for more information: https://www.bfalaw.com/cases/pennymac-class-action-lawsuit.

What Can You Do?

If you invested in PennyMac, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/pennymac-class-action-lawsuit

Or contact:
Adam McCall
[email protected]
212.789.3619

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/pennymac-class-action-lawsuit

Attorney advertising. Past results do not guarantee future outcomes.

NEW YORK, Feb. 13, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Wealthfront Corporation (NASDAQ: WLTH) for potential violations of the federal securities laws.

If you invested in Wealthfront, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases/wealthfront-corporation-class-action.

Why is Wealthfront Being Investigated for Violations of the Federal Securities Laws?

Wealthfront is an online financial advisor that uses automated tools to provide investment and financial advice. On or around December 12, 2025, Wealthfront completed an initial public offering (“IPO”) of more than 34 million shares of common stock at a price of $14.00 per share.

BFA is investigating whether Wealthfront violated the federal securities laws by making false and misleading statements to investors, including in the offering materials for its IPO.

Why did Wealthfront’s Stock Drop?

On January 12, 2026, Wealthfront published its first quarterly results as a publicly traded company. The results included net deposit outflows of $208 million, a stark reversal from the $874 million in inflows the company experienced during the same period a year earlier. During the company’s earnings conference call held the same day, CEO David Fortunato attributed the decline to falling interest rates and emphasized the strategic importance of Wealthfront’s new home-lending business which he asserted would protect the company from downside risk should interest rates continue to fall. Also on the call, Fortunato revealed that he personally owns a 95.1% stake in Wealthfront’s home-lending business and that the company may “revisit or revise the ownership structure.” This news caused the price of Wealthfront stock to drop $2.12 per share, nearly 17%, from a closing price of $12.59 per share on January 12, 2026, to $10.47 per share on January 13, 2026.

Click here for more information: https://www.bfalaw.com/cases/wealthfront-corporation-class-action.

What Can You Do?

If you invested in Wealthfront, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases/wealthfront-corporation-class-action

Or contact:
Adam McCall
[email protected]
212.789.3619

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, “Litigation Stars” by Benchmark Litigation, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases/wealthfront-corporation-class-action

Attorney advertising. Past results do not guarantee future outcomes.

The Microsoft logo is displayed through a magnifying glass in this photo illustration in Ontario, Canada, on February 5, 2026. (Photo by Thomas Fuller/NurPhoto via Getty Images)

NurPhoto via Getty Images

Microsoft stock (NASDAQ: MSFT) is down 15% year-to-date, driven largely by investor anxiety over heavy capital expenditures and a slight deceleration in cloud growth reported in late January.

However, this pullback raises a critical question: Is the stock now a bargain?

Historically, Microsoft has shown a remarkable ability to rebound, posting 30% gains in under two months during pivotal stretches in 2015 and 2023. If these historical patterns hold, upcoming catalysts could once again trigger a period of robust momentum and significant value creation for shareholders.

Specifically, we identify these catalysts:

AI Infrastructure Buildout Unlocking BacklogCopilot Enterprise Penetration Reaching Tipping PointActivision Integration Driving Gaming Margin ExpansionCatalyst 1: AI Infrastructure Buildout Unlocking BacklogDetails: Speeding up the conversion of $625B commercial cloud backlog, resulting in significant margin inflection after the CapEx cycleSegment Affected: Intelligent CloudPotential Timeline: Mid-2026 through 2027Evidence: Commercial RPO soaring 110% YoY to $625 billion; Azure growth remaining steady at 39% due to immense AI demand surpassing current capacityCatalyst 2: Copilot Enterprise Penetration Reaching Tipping PointDetails: Amplifying Microsoft 365 average revenue per user (ARPU), adding billions in high-margin, recurring software revenueSegment Affected: Productivity and Business ProcessesPotential Timeline: Next 2-3 Earnings CallsEvidence: Paid seats increasing 160% YoY to 15 million, representing only 3% of total M365 users; CIO surveys showing 80% plan to deploy within the next yearCatalyst 3: Activision Integration Driving Gaming Margin ExpansionDetails: Transitioning gaming revenue to high-margin, recurring subscriptions; boosting Game Pass subscriber growth with popular titlesSegment Affected: More Personal ComputingPotential Timeline: Throughout 2026Evidence: Xbox content and services revenue surging 61% post-acquisition; record Game Pass subscriber additions on Call of Duty launch dayBut The Stock Is Not Without Its RisksHere are specific risks we identify:

MORE FOR YOU

AI Capital Expenditure Overhang & Uncertain MonetizationMulti-Front Regulatory Siege on Cloud DominanceCloud Margin Compression from Resurgent Hyperscale CompetitionExamining historical drawdowns during market crises provides another perspective on risk.

Microsoft experienced a 65% decline during the Dot-Com crash, 58% during the Global Financial Crisis, and 37% during the Inflation Shock. Smaller drops, such as during Covid and in 2018, still resulted in stock declines of 18-28%.

Reference: Microsoft’s FundamentalsRevenue Growth: 16.7% LTM and 14.4% last 3-year average.Cash Generation: Nearly 25.3% free cash flow margin and 46.7% operating margin LTM.Valuation: Microsoft stock trades at a P/E multiple of 25.0MSFT Fundamentals vs. S&P Medians

Trefis

*LTM: Last Twelve Months

If you want more details, read Buy or Sell MSFT Stock.

Still not convinced about MSFT stock? Consider Portfolio Approach

Don’t Just Pick Stocks, Build A Resilient Wealth StrategyWhen uncertainty drives daily trading, savvy investors focus on the broader picture. Our partner’s wealth strategies assist you in navigating evolving market cycles.

What if you capitalized on the current commodity super cycle? Could a portfolio allocating 10% to commodities, 10% to gold, and 2% to crypto, in addition to equities, yield higher returns in the next 1-3 years? We’ve analyzed the statistics. Our wealth management partner manages precisely these types of intricate multi-asset strategies, merging real assets with high-performance equity segments like the Trefis High Quality Portfolio.

Crocs delivered a strong Q4, beating expectations on both revenue and EPS, and raised full-year guidance. CROX remains undervalued with a new price target of $173, reflecting a 76% upside from current levels. Significant debt repayment and $180M in share repurchases, alongside robust international growth and HEYDUDE stabilization, reinforce the investment case.

Alithya delivers $130.9 M in new Bookings(1) and maintains a strong cash position as the company pursues its shift toward higher‑value, complex transformation projects.

Q3-2026 Highlights

Revenues decreased 0.5% to $115.2 million, compared to $115.8 million for the same quarter last year. 82.2% of revenues were generated from clients which we had in the same quarter last year. Gross margin decreased 2.4% to $36.5 million, compared to $37.4 million for the same quarter last year. Gross Margin as a Percentage of Revenues(1) decreased to 31.7%, compared to 32.3% for the same quarter last year. Net earnings increased to $0.7 million, or $0.01 per share, compared to a loss of $3.7 million, or a loss of $0.04 per share, for the same quarter last year. Adjusted Net Earnings(2) decreased by $0.6 million, or 11.6%, to $5.1 million, from $5.7 million for the same quarter last year. This translated into Adjusted Net Earnings per Share(2) of $0.05, compared to $0.06 for the same quarter last year. Adjusted EBITDA(2) decreased by $0.3 million, or 2.9%, to $10.0 million, for an Adjusted EBITDA Margin(2) of 8.7% of revenues, compared to $10.3 million, for an Adjusted EBITDA Margin of 8.9% of revenues, for the same quarter last year. Net cash from operating activities was $25.5 million, representing an increase of $13.8 million, compared to $11.7 million for the same quarter last year. Q3 Bookings reached $130.9 million, which translated into a Book-to-Bill Ratio(1) of 1.14 for the quarter, compared to Bookings of $138.4 million and a Book-to-Bill Ratio of 1.20 for the same quarter last year. Backlog(1) represented approximately 14 months of trailing twelve-month revenues as at December 31, 2025. , /PRNewswire/ - Alithya Group inc. (TSX: ALYA) ("Alithya" or the "Company") reported today its results for the third quarter of fiscal 2026 ended December 31, 2025. All amounts are in Canadian dollars unless otherwise stated.

Summary of the financial results for the third quarter:

Financial Highlights

(in thousands of $, except for margin percentages)

F2026-Q3

F2025-Q3

Revenues

115,162

115,761

Gross Margin

36,514

37,385

Gross Margin as a percentage of revenues (%)(1)

31.7 %

32.3 %

Selling, general and administrative expenses

28,460

28,814

Selling, general and administrative expenses (%)(1)

24.7 %

24.9 %

Net Earnings (Loss)

676

(3,716)

Basic and Diluted Earnings (Loss) per Share

0.01

(0.04)

Adjusted Net Earnings(2)

5,054

5,719

Adjusted Net Earnings per Share(2)

0.05

0.06

Adjusted EBITDA(2)

9,982

10,275

Adjusted EBITDA Margin (%)(2)

8.7 %

8.9 %

(1)

These are other financial measures without a standardized definition under IFRS, which may not be comparable to similar measures used by other issuers. See "Non-IFRS and Other Financial Measures" below.

(2)    

These are non-IFRS financial measures without a standardized definition under IFRS, which may not be comparable to similar measures used by other issuers. More information and quantitative reconciliations of Adjusted Net Earnings, Adjusted Net Earnings per share and Adjusted EBITDA to the most directly comparable IFRS measures are presented below under the caption "Non-IFRS and Other Financial Measures". "Adjusted EBITDA Margin" refers to the percentage of total revenue that Adjusted EBITDA represents for a given period.

Quote by Paul Raymond, President and CEO, Alithya:

"I am proud of the team's continued discipline in executing our long-term strategy. While our third quarter was slower compared to the same period last year, we are reporting healthy bookings and building momentum in strategic areas. Also, our strong cash position gives us the flexibility to pursue growth opportunities and allocate capital where it drives value for our shareholders.

In addition, we are announcing the signature of an agreement to spin off our equity interests related to Datum Consulting Group in consideration for a minority interest in a strategic partnership dedicated to investing in entities commercializing AI solutions. With a streamlined structure and greater operational focus, we believe this approach will enable these assets to scale more rapidly and unlock stronger returns.

As we remain focused on our industry‑first model, we are steadily shifting toward higher‑value, specialized transformation work that helps our clients leverage the latest AI‑driven technologies from our partners."

Third Quarter Results

Revenues

Revenues amounted to $115.2 million for the three months ended December 31, 2025, representing a decrease of $0.6 million, or 0.5%, from $115.8 million for the three months ended December 31, 2024.

U.S. revenues increased by $6.2 million, or 12.7%, to $55.0 million for the three months ended December 31, 2025, from $48.8 million for the three months ended December 31, 2024, due primarily to revenues from the acquisition of eVerge Interests, Inc. and its subsidiaries on May 31, 2025 ("eVerge") and organic growth in enterprise transformation services, partially offset by an unfavorable US$ exchange rate impact of $0.2 million between the two periods.

Revenues in Canada decreased by $7.7 million, or 12.5%, to $54.0 million for the three months ended December 31, 2025, from $61.7 million for the three months ended December 31, 2024. The decrease in revenues was due primarily to reduced revenues from government contracts and certain client projects reaching maturity, partially offset by revenues from the acquisition of XRM Vision Inc. and its subsidiaries on December 1, 2024 ("XRM Vision").

International revenues increased by $1.0 million, or 19.2%, to $6.2 million for the three months ended December 31, 2025, from $5.2 million for the three months ended December 31, 2024. The increase in revenues was primarily due to organic growth in enterprise transformation services and a favorable foreign exchange rate impact of $0.5 million between the two periods.

During the quarter, 22 new clients were signed.

Gross Margin

Gross margin decreased by $0.9 million, or 2.4%, to $36.5 million for the three months ended December 31, 2025, from $37.4 million for the three months ended December 31, 2024. Gross margin as a percentage of revenues decreased to 31.7% for the three months ended December 31, 2025, from 32.3% for the three months ended December 31, 2024.

In the U.S., gross margin as a percentage of revenues decreased compared to the same quarter last year, primarily due to decreased utilization rates, partially offset by the increased use of our smart shoring capabilities and a proportionally larger increase in the use of permanent employees compared to subcontractors.

In Canada, gross margin as a percentage of revenues increased compared to the same quarter last year, mainly due to a proportionally larger decrease in the use of subcontractors compared to permanent employees, a positive margin contribution from XRM Vision, and a reduction in revenues from lower gross margin clients in favor of higher-value offerings, partially offset by a slight decrease in utilization rates.

International gross margin as a percentage of revenues decreased compared to the same quarter last year, mainly due to one client project coming to maturity, which historically had a higher gross margin.

Selling, General and Administrative Expenses

Selling, general and administrative expenses totaled $28.5 million for the three months ended December 31, 2025, representing a decrease of $0.3 million, or 1.0%, from $28.8 million for the three months ended December 31, 2024, despite including an increase of $2.6 million of expenses related to XRM Vision and eVerge. Selling, general and administrative expenses as a percentage of revenues amounted to 24.7% for the three months ended December 31, 2025, compared to 24.9% for the same period last year. The decrease in selling, general and administrative expenses was mainly due to decreased employee compensation costs, mainly stemming from variable compensation, and decreased information technology and communications costs, partially offset by expenses from XRM Vision and eVerge, increased occupancy costs, and increased professional fees.

Net Earnings (Loss)

Net earnings for the three months ended December 31, 2025 were $0.7 million, representing an increase of $4.4 million, from a net loss of $3.7 million for the three months ended December 31, 2024. The increase was due primarily to the decreased impairment of goodwill and intangibles, decreased selling, general and administrative expenses, despite additional expenses related to XRM Vision and eVerge, decreased depreciation and amortization of intangibles, and decreased income tax expense, partially offset by decreased gross margin, due to decreased utilization rates, decreased business acquisition, integration and reorganization costs recovery, and increased foreign exchange loss for the three months ended December 31, 2025, compared to the three months ended December 31, 2024. On a per share basis, this translated into basic and diluted earnings per share of $0.01 for the three months ended December 31, 2025, compared to a loss of $0.04 per share for the three months ended December 31, 2024.

Adjusted Net Earnings

Adjusted Net Earnings amounted to $5.1 million for the three months ended December 31, 2025, representing a decrease of $0.6 million, or 11.6%, from $5.7 million for the three months ended December 31, 2024. As explained above, the decrease was primarily due to decreased gross margin, due to decreased utilization rates, and increased foreign exchange loss, partially offset by decreased selling, general and administrative expenses, despite additional expenses related to XRM Vision and eVerge, decreased depreciation, and decreased income tax expense for the three months ended December 31, 2025, compared to the three months ended December 31, 2024. This translated into Adjusted Net Earnings per Share of $0.05 for the three months ended December 31, 2025, compared to $0.06 for the three months ended December 31, 2024.

Adjusted EBITDA

Adjusted EBITDA amounted to $10.0 million for the three months ended December 31, 2025, representing a decrease of $0.3 million, or 2.9%, from $10.3 million for the three months ended December 31, 2024. As explained above, the decrease was due primarily to decreased gross margin, due to decreased utilization rates, partially offset by decreased selling, general and administrative expenses, despite additional expenses related to XRM Vision and eVerge. Adjusted EBITDA Margin was 8.7% for the three months ended December 31, 2025, compared to 8.9% for the three months ended December 31, 2024.

Bookings

Bookings amounted to $130.9 million, which translated into a Book-to-Bill Ratio of 1.14 for the quarter, compared to $138.4 million, which translated into a Book-to-Bill Ratio of 1.20, for the same quarter last year. Bookings for the trailing twelve months amounted to $440.0 million as at December 31, 2025, which translated into a Book-to-Bill ratio of 0.90.

If revenues from the two long-term contracts signed as part of an acquisition in the first quarter of fiscal year 2022 were excluded, the Book-to-Bill ratio would have been 1.26, compared to 1.34 for the same quarter last year. For the trailing twelve months as at December 31, 2025, the Book-to-Bill ratio, excluding revenues from the two long-term contracts, would have been 1.00.

Liquidity and Capital Resources

For the three months ended December 31, 2025, net cash from operating activities was $25.5 million, representing an increase of $13.8 million, from $11.7 million for the three months ended December 31, 2024. The net cash from operating activities for the three months ended December 31, 2025, resulted primarily from $17.4 million in favorable changes in non-cash working capital items and $7.4 million of other non-cash adjustments and of net financial expenses.

Favorable changes in non-cash working capital items of $17.4 million during the three months ended December 31, 2025 were mainly due to the timing of payments, collections, and invoicing and consisted primarily of a $14.7 million decrease in accounts receivable and other receivables, an $8.5 million decrease in tax credits receivable, a $1.1 million decrease in prepaids, a $0.8 million increase in deferred revenues, and a $0.3 million decrease in unbilled revenues, partially offset by an $8.1 million decrease in accounts payable and accrued liabilities.

As at December 31, 2025, drawings on the Credit Facility amounted to $80.6 million, and additional capital resources available to Alithya amounted to $125.1 million, consisting of cash and availability under its credit facilities, including the accordion provision. Management believes that the Company is well positioned to sustain its operations while maintaining adequate levels of liquidity.

Nine-Month Results

Revenues amounted to $363.6 million for the nine months ended December 31, 2025, representing an increase of $15.4 million, or 4.4%, from $348.2 million for the nine months ended December 31, 2024. Gross margin increased by $9.1 million, or 8.3%, to $119.1 million for the nine months ended December 31, 2025, from $110.0 million for the nine months ended December 31, 2024. Gross margin as a percentage of revenues increased to 32.8% for the nine months ended December 31, 2025, from 31.6% for the nine months ended December 31, 2024. Selling, general and administrative expenses totaled $90.3 million for the nine months ended December 31, 2025, representing an increase of $4.0 million, or 4.6%, from $86.3 million for the nine months ended December 31, 2024, due to an increase of $7.0 million of expenses from XRM Vision and eVerge, since its acquisition on May 31, 2025. Selling, general and administrative expenses as a percentage of revenues amounted to 24.8% for the nine months ended December 31, 2025 and 2024. Adjusted EBITDA amounted to $34.4 million for the nine months ended December 31, 2025, representing an increase of $4.8 million, or 16.1%, from $29.6 million for the nine months ended December 31, 2024. Adjusted EBITDA Margin was 9.5% for the nine months ended December 31, 2025, compared to 8.5% for the nine months ended December 31, 2024. Net loss for the nine months ended December 31, 2025 was $30.1 million, due primarily to an impairment charge of $38.0 million in the second quarter of this year, representing an increase of $23.4 million, from $6.7 million for the nine months ended December 31, 2024. On a per share basis, this translated into a basic and diluted loss per share of $0.31 for the nine months ended December 31, 2025, compared to $0.07 per share for the nine months ended December 31, 2024. Adjusted Net Earnings amounted to $21.0 million for the nine months ended December 31, 2025, representing an increase of $5.1 million, or 32.1%, from $15.9 million for the nine months ended December 31, 2024.

Normal Course Issuer Bid Program

On September 9, 2025, the Company's Board of Directors authorized and subsequently the Toronto Stock Exchange ("TSX") approved the implementation of a Normal Course Issuer Bid ("NCIB"). Under the NCIB, the Company is allowed to purchase for cancellation up to 5,939,183 Subordinate Voting Shares, representing 10% of the Company's public float as of the close of markets on September 2, 2025.

The NCIB plan commenced on September 12, 2025 and will end on the earlier of September 11, 2026 and the date on which the Company will have acquired the maximum number of Subordinate Voting Shares allowable under the NCIB or will otherwise have decided not to make any further purchases. All purchases of Subordinate Voting Shares are made by means of open market transactions at their market price at the time of acquisition. Concurrently, the Company entered into an automatic share purchase plan ("ASPP") with a designated broker in connection with its NCIB. The ASPP allows the designated broker to purchase for cancellation Subordinate Voting Shares, on behalf of the Company, subject to certain trading parameters established, from time to time, by the Company.

As at December 31, 2025, 347,160 Subordinate Voting Shares were purchased for cancellation under the NCIB. Shareholders may obtain a copy of the notice of NCIB approved by the TSX, free of charge, by contacting the Company.

Datum Transaction and Share Repurchase Transaction

Alithya entered into a binding agreement with Medivra Holdings LLC (the "Purchaser"), an entity controlled by Amar Bukkasagaram, Senior Vice President, Data Solutions of Alithya, pursuant to which the Purchaser has agreed to acquire Datum Consulting Group, LLC and its affiliates ("Datum", the "Datum Transaction"). Datum, which was acquired by Alithya from Mr. Bukkasagaram in 2022, provides application modernization and data migration services and represents less than 5% of the Company's total revenues and assets. In consideration for the sale of Datum, Alithya will receive a minority equity interest in the capital of Purchaser. The closing of the Datum Transaction is expected to take place in the fourth quarter of fiscal 2026 and is subject to customary conditions for a transaction of this nature. Mr. Bukkasagaram will step down from his position at Alithya, effective on the closing date of the Datum Transaction, in order to devote his time to the business of Datum and the Purchaser.

In connection with the Datum Transaction, Alithya also announced that it has entered into a private agreement with Mr. Bukkasagaram for the repurchase for cancellation (the "Share Repurchase Transaction") of 2,489,682 Class A subordinate voting shares of Alithya (the "Subordinate Voting Shares") at a price equal to the lower of (i) the volume-weighted average price per Subordinate Voting Share on the Toronto Stock Exchange (the "TSX") for the five (5) trading days ending on and including the day immediately preceding the closing date of the Share Repurchase Transaction and (ii) the simple average of the closing prices of the Subordinate Voting Shares for the twenty (20) trading days immediately preceding the closing date of the Share Repurchase Transaction. The closing of the Share Repurchase Transaction is expected to take place on or about February 17, 2026 and is subject to customary conditions for a transaction of this nature. At closing of the Datum Transaction, Mr. Bukkasagaram will advance the proceeds from the Share Repurchase Transaction to Datum in order to fund the short-term working capital needs of Datum. The Share Repurchase Transaction will be made in connection with the NCIB. Following the Share Repurchase Transaction, the Company will have repurchased a total of 2,934,287 Subordinate Voting Shares and therefore a total of 3,004,896 Subordinate Voting Shares will remain available for repurchase under the current NCIB.

Forward-Looking Statements

This press release contains statements that may constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable Canadian securities laws and the U.S. Private Securities Litigation Reform Act of 1995 and other applicable U.S. safe harbours (collectively "forward-looking statements"). Statements that do not exclusively relate to historical facts, as well as statements relating to management's expectations regarding the future growth, results of operations, performance and business prospects of Alithya, and other information related to Alithya's business strategy and future plans or which refer to the characterizations of future events or circumstances represent forward-looking statements. Such statements often contain the words "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "could," "would," "will," "may," "can," "continue," "potential," "should," "project," "target," and similar expressions and variations thereof, although not all forward-looking statements contain these identifying words.

Forward-looking statements in this press release include, among other things, information or statements about: (i) our ability to generate sufficient earnings to support our operations; (ii) our ability to take advantage of business opportunities and meet our goals set in our three-year strategic plan; (iii) our ability to maintain and develop our business, including by broadening the scope of our service offerings, by leveraging artificial intelligence ("AI"), our geographic presence and our smart shore capabilities, our expertise, and our integrated offerings, and by entering into new contracts and penetrating new markets; (iv) our strategy, future operations, and prospects, including our expectations regarding future revenue resulting from bookings and backlog and providing stakeholders with long-term growing return on investment; (v) our ability to service our debt and raise additional capital; (vi) our estimates regarding our financial performance, including our revenues, profitability, costs and expenses, gross margins, liquidity, capital resources, and capital expenditures; (vii) our ability to identify suitable acquisition targets and realize the expected synergies or cost savings relating to the integration of acquired entities, and (viii) our ability to balance, meet and exceed the needs of our stakeholders; (ix) the expected timing and completion of the Datum Transaction and the Share Repurchase Transaction; (x) the satisfaction of the conditions to closing of each transaction, (xi) and the intended use of proceeds from the Share Repurchase Transaction.

Forward-looking statements are presented for the sole purpose of assisting investors and others in understanding Alithya's objectives, strategies and business outlook as well as its anticipated operating environment and may not be appropriate for other purposes. Although management believes the expectations reflected in Alithya's forward-looking statements were reasonable as at the date they were made, forward-looking statements are based on the opinions, assumptions and estimates of management and, as such, are subject to a variety of risks and uncertainties and other factors, many of which are beyond Alithya's control, and which could cause actual events or results to differ materially from those expressed or implied in such statements. Such risks and uncertainties include but are not limited to those discussed in the section titled "Risks and Uncertainties" of Alithya's Management Discussion and Analysis ("MD&A") for the year ended March 31, 2025, as well as in Alithya's other materials made public, including documents filed with Canadian and U.S. securities regulatory authorities from time to time and which are available on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov. Additional risks and uncertainties not currently known to Alithya or that Alithya currently deems to be immaterial could also have a material adverse effect on its financial position, financial performance, cash flows, business or reputation.

Forward-looking statements contained in this press release are qualified by these cautionary statements and are made only as of the date of this press release. Alithya expressly disclaims any obligation to update or alter any forward-looking statements, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by applicable law. Investors are cautioned not to place undue reliance on forward-looking statements since actual results may vary materially from them.

Non-IFRS and Other Financial Measures

This press release includes certain measures which have not been prepared in accordance with IFRS and other financial measures. Adjusted Net Earnings, Adjusted Net Earnings per Share, EBITDA, EBITDA Margin, Adjusted EBITDA and Adjusted EBITDA Margin are non-IFRS measures and Bookings, Book-to-Bill Ratio, Backlog, Gross Margin as a Percentage of Revenues and Selling, General and Administrative Expenses as a Percentage of Revenues are other financial measures used in this press release. These measures are provided as additional information to complement IFRS measures by providing further understanding of Alithya's results of operations from management's perspective. They do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. They should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with IFRS. They are used to provide investors with additional insight into Alithya's operating performance and thus highlight trends in Alithya's business that may not otherwise be apparent when relying solely on IFRS measures. Additional details for these non-IFRS and other financial measures can be found in section 5, "Non-IFRS and Other Financial Measures", of Alithya's MD&A for the quarter ended December 31, 2025, filed on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov, which includes explanations of the composition and usefulness of these non-IFRS financial measures and non-IFRS ratios and is incorporated by reference in this press release.

The following table reconciles net earnings (loss) to Adjusted Net Earnings:

For the three months ended
December 31,

For the nine months ended
December 31,

(in $ thousands)

2025

2024

2025

2024

$

$

$

$

Net earnings (loss)

676

(3,716)

(30,100)

(6,748)

Business acquisition, integration and reorganization costs (recovery)

(372)

(1,244)

(2,210)

88

Amortization of intangibles

4,125

4,810

14,397

14,089

Share-based compensation

1,655

1,704

5,331

4,428

Impairment of goodwill and intangibles

—

5,144

38,028

5,144

Loss on disposal of property and equipment and right-of-use assets and loss on lease termination

273

—

310

—

Severance

—

—

—

1,502

Income tax related to deferred tax asset recognized on purchase price allocation

128

—

(1,820)

—

Effect of income tax related to above items

(1,431)

(979)

(2,895)

(2,580)

Adjusted Net Earnings (1)

5,054

5,719

21,041

15,923

Basic and diluted earnings (loss) per share

0.01

(0.04)

(0.31)

(0.07)

Adjusted Net Earnings per Share (1)

0.05

0.06

0.21

0.17

(1) Non-IFRS measure. See section 5 titled "Non-IFRS and Other Financial Measures" of Alithya's MD&A for the three months ended December 31, 2025, filed on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.

The following table reconciles net earnings (loss) to EBITDA and Adjusted EBITDA:

For the three months ended
December 31,

For the nine months ended
December 31,

(in $ thousands)

2025

2024

2025

2024

$

$

$

$

Revenues

115,162

115,761

363,612

348,150

Net earnings (loss)

676

(3,716)

(30,100)

(6,748)

Net financial expenses

2,339

2,372

7,305

6,246

Income tax expense (recovery)

37

724

(2,651)

1,962

Depreciation

668

1,168

2,711

3,365

Amortization of intangibles

4,125

4,810

14,397

14,089

EBITDA (1)

7,845

5,358

(8,338)

18,914

EBITDA Margin (1)

6.8 %

4.6 %

(2.3) %

5.4 %

Adjusted for:

Foreign exchange loss (gain)

581

(687)

1,278

(445)

Share-based compensation

1,655

1,704

5,331

4,428

Business acquisition, integration and reorganization costs (recovery)

(372)

(1,244)

(2,210)

88

Impairment of goodwill and intangibles

—

5,144

38,028

5,144

Loss on disposal of property and equipment, intangible and lease modification

273

—

310

—

Severance

—

—

—

1,502

Adjusted EBITDA (1)

9,982

10,275

34,399

29,631

Adjusted EBITDA Margin (1)

8.7 %

8.9 %

9.5 %

8.5 %

(1) Non-IFRS measure. See section 5 titled "Non-IFRS and Other Financial Measures" of Alithya's MD&A for the three months ended December 31, 2025, filed on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.

Third Quarter Conference Call

Alithya will hold a conference call to discuss these results on February 13, 2026, at 9:00 a.m. Eastern Time. Interested parties can join the call by dialing 1-800-990-4777, or via webcast at https://app.webinar.net/e9PVp7yLZMJ. A replay will be made available until February 20, 2026 (conference replay information: 1-888-660-6345, 69704#).

About Alithya

We are trusted advisors who leverage AI and the latest technologies in our strategic consulting and digital transformation services. We help solve business challenges that enable our clients to unlock new opportunities, modernize processes and gain efficiencies. We leverage a world-class team of passionate industry experts, AI-based IP solutions, the latest digital technologies, a solid understanding of mission critical business applications and a partner ecosystem to accelerate results. We've built a foundation of success that includes a specialized global delivery network to provide end-to-end solutions.

We strive to make a difference. We are Alithya.

Note to readers: Management's Discussion and Analysis and the interim condensed consolidated financial statements and notes for the three and nine months ended December 31, 2025 are available on SEDAR+ at www.sedarplus.ca, on EDGAR at www.sec.gov and on the Company's website at www.alithya.com. Shareholders may, upon request, receive a hard copy of these documents free of charge.

SOURCE Alithya Group inc.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

© Ground Picture / Shutterstock.com

Chipotle Mexican Grill (NYSE: CMG) and Meta Platforms (NASDAQ: META | META Price Prediction) became the centerpiece of Bill Ackman’s boldest portfolio moves. Pershing Square exited its entire Chipotle stake and rotated into Meta, betting AI infrastructure will outperform struggling fast-casual dining. Should everyday investors follow his lead?

Why Ackman Walked Away From Chipotle Chipotle’s Q4 2025 results revealed operational strain that likely accelerated Ackman’s exit. Comparable sales dropped 2.5%, driven by a 3.2% decline in transactions, which was only partially offset by a 0.7% increase in the average check. This marked the first same-store sales decline in over two decades. Operating margin compressed to 14.1% from 14.6% year-over-year, while food costs climbed to 30.2% and labor held at 25.5%.

The stock’s performance reflects this pressure. CMG has fallen 37.44% over the past year and sits 3.14% lower year-to-date. Despite opening 132 restaurants in Q4 with 97 Chipotlanes, expansion hasn’t offset weakening consumer demand. Bureau of Economic Analysis data shows food services spending grew just 3.9% from January through November 2025, lagging the 4.6% increase in total personal consumption expenditures.

Insider activity reinforces caution. Curtis Garner, Chief Strategy and Technology Officer, sold over 468,000 shares throughout 2025, including 100,000 shares at $36.05 in mid-December. CEO Scott Boatwright parted with 81,759 shares at $42.91 in August. When executives sell aggressively as the stock declines, it signals limited near-term confidence.

Meta’s AI Infrastructure Bet Looks Different Meta’s Q4 2025 results delivered the growth story Ackman appears to be chasing. Revenue hit $59.89 billion, beating estimates of $59.76 billion, with earnings per share reaching $8.88 versus the $8.39 consensus. Revenue climbed 24% year-over-year, driven by an 18% increase in ad impressions and 6% higher ad pricing. Net income of $22.77 billion reflected 9.3% growth despite heavy AI spending.

Meta plans $115 billion to $135 billion in capex for AI infrastructure, a bet CEO Mark Zuckerberg frames around building “personal superintelligence.” Operating margin of 41% demonstrates profitability even as R&D expenses surged 30.7% to $51.37 billion in fiscal 2025. Meta returned $26.26 billion to shareholders through buybacks in 2025.

Valuation supports the rotation. Meta trades at 28x trailing earnings with a forward P/E of 22x, reflecting expected earnings acceleration. Chipotle’s 33x trailing P/E looks expensive given 4% quarterly earnings growth and 4.9% revenue growth. Meta’s 30.1% net margin dwarfs Chipotle’s 12.9%, and analysts see Meta reaching $860, compared to its current price near $650.

What Ackman’s Move Signals About Both Companies Ackman’s exit from Chipotle reflects concerns that the transaction decline and margin pressure represent structural challenges rather than temporary headwinds. The company’s plan to open 350 to 370 restaurants in 2026 addresses expansion but doesn’t resolve the underlying demand weakness that drove the first same-store sales decline in over two decades. The rotation suggests Ackman views operational recovery stories as less compelling than secular growth opportunities in the current market environment.

The shift into Meta signals conviction that AI infrastructure investment will generate returns that justify near-term margin pressure. Meta’s advertising business continues to show resilience with 24% revenue growth, while the $115 billion to $135 billion capex commitment positions the company for long-term AI monetization. Ackman’s timing reflects a view that AI-driven tech returns will define the next market cycle, making Meta’s 1.28 beta and heavy spending acceptable trade-offs for investors focused on growth over stability. The move highlights a broader portfolio shift from consumer discretionary exposure to digital infrastructure plays.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

After AppLovin Corp.’s (NASDAQ: APP) share price tumbled more than 35% early last year due to a pending class action lawsuit and to short seller reports, the software company’s better-than-expected quarterly reports helped the stock recover. Shares hit a new high of $745.61 a piece in September and took another run at that high in late December. However, they have retreated over 45% year to date, including an almost 10% drop in the past week. AppLovin stock now has underperformed the S&P 500 and the Nasdaq over the past year.

Since the company went public in 2021, its share price is still over 532% higher. This has clearly been a top growth stock that investors have benefited from owning in recent years. AppLovin has been among the top tech stocks seeing a lot of love from the market, but is that still true?

These days, the company focuses on providing software solutions that enhance the marketing and monetization of online advertisers. With AppLovin, there are certainly catalysts worth considering, and we shall get to those shortly. It continues to benefit from the strong secular growth trends that investors are seeking increased exposure to. As investors continue to pile into such stocks, retail investors appear eager to gain outsized exposure in anticipation of a continued boom.

It is worth remembering that AppLovin experienced a drawdown of more than 90% from its post-pandemic high in 2021. So, is this stock headed for further declines, or is its momentum sustainable? Let’s dive into some catalysts and price predictions around where this stock could go for the rest of 2025 through to the end of this decade.

Three Key Drivers for AppLovin

As mentioned, AppLovin investors have to contend with plenty of news. For instance, analysts covering AppLovin have not been as bullish on the company as many may think, having issued warnings about the stock in the past year due to concerns about the company’s fundamentals. Goldman Sachs reiterated its Neutral rating on the shares after the recent earnings report, though other analysts maintained Buy ratings.

Nonetheless, we see these key drivers propelling AppLovin going forward.

1. AI-Powered Advertising Enhancements  AppLovin’s Axon AI engine has been a game-changer, optimizing ad targeting and expanding beyond gaming into new categories like e-commerce, fintech, and automotive advertising. During the Q4 2024 earnings call, CEO Adam Foroughi highlighted that for the first time, AppLovin captured a significant share of holiday shopping ad spend—validating that its AI models are effective outside gaming.

Scaling AI Beyond Gaming: The company initially focused on direct-to-consumer (DTC) brands, but early pilots have shown AI-driven success across multiple verticals. This means that any business in any industry could potentially tap into AppLovin’s advertising platform. Personalized Advertising With Generative AI: The company is developing automated tools and AI-generated ad creatives to improve engagement. AppLovin’s self-service platform (currently in development) will eventually allow businesses to run ads autonomously with AI-optimized targeting, a major step toward scaling its reach. AppLovin’s AI capabilities are proving to be industry-agnostic, opening the door for millions of global advertisers.

2. Expansion Into E-commerce Advertising Foroughi described the fourth quarter of 2024 as a major milestone, marking AppLovin’s first significant penetration into e-commerce advertising. Historically, the company primarily monetized mobile gaming ads, but now retail and consumer brands are joining the platform in large numbers.

Surging Demand From E-commerce Brands: Advertisers saw strong return on investment during the holiday season, prompting continued demand for the platform in 2025. Pilot Program Scaling Up: While AppLovin hasn’t disclosed the number of e-commerce advertisers, industry checks suggest a significant influx of brands seeking access. Self-Service Expansion Is the Next Big Growth Driver: Currently, the company manually onboards advertisers, but the launch of automated tools and a self-serve platform will allow thousands of new businesses to join. E-commerce advertising is set to be a major revenue contributor. Once self-serve tools become operational, adoption could scale exponentially.

3. Strategic Divestment of Mobile Gaming Unit AppLovin is officially exiting game development—a move that frees up resources to focus entirely on advertising technology.

$900 Million Sale of Apps Business: AppLovin announced that it has signed an exclusive term sheet to sell its mobile gaming division, with $500 million in cash and $400 million in equity in a private company. Why This Matters: The company originally acquired gaming studios to train its AI models, but it was never meant to be a core business. Now that AI is self-sufficient, AppLovin no longer needs to develop its own games. Shifting to a Pure Ad-Tech Model: With gaming divested, the company can fully concentrate on expanding its advertising ecosystem, positioning itself as a direct competitor to Google and Meta in the ad tech space. Divesting from mobile games is a significant pivot for the company, as it paves the way for AppLovin to become a pure advertising technology company.

Stock Price Prediction for 2026 There are clearly strong reasons why AppLovin’s stock rose so much this past year. Simply put, investors have been betting on AppLovin as a potential AI winner, as its AI advancements have driven customer success and accelerated the company’s growth. If the company can continue to prioritize generating outsized free cash flow and return capital to shareholders to a greater degree, this multiple could be warranted. Here is where the stock could be headed, assuming the company’s multiple stays the same and earnings grow according to analyst estimates.

Wall Street’s consensus one-year price target for AppLovin has fallen to $666.92, which is still 81.8% higher than the current share price. On average, 28 analysts covering AppLovin recommend buying shares, seven of them with Strong Buy ratings.

24/7 Wall St.’s forecast projects AppLovin’s stock price to be $774.58 by year’s end 2026, which suggests a big rebound in the coming year. We expect the stock to resume its strong growth rate and outperform analysts’ expectations going forward.

AppLovin Price Target for 2030

By the end of the decade, we estimate AppLovin’s stock price will be $856.06 per share, with less than 10% year-over-year revenue growth. Our estimated stock price is over 133% higher than the current stock price. Here’s how it gets there:

Year Price Target Upside Potential 2026 $697.12 90.0% 2027 $731.49 99.4% 2028 $722.74 97.0% 2029 $809.70 120.7% 2030 $856.06 133.3% AppLovin Plunges 18% Despite Blowout Earnings as AI Fears Rule

The State Street SPDR MSCI USA StrategicFactors ETF (QUS - Free Report) was launched on April 15, 2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.

The fund is sponsored by State Street Investment Management. It has amassed assets over $1.58 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap BlendLarge cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.

CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 1.36%.

Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector -- about 24.2% of the portfolio. Financials and Healthcare round out the top three.

Looking at individual holdings, Microsoft Corp (MSFT) accounts for about 3% of total assets, followed by Apple Inc (AAPL) and Nvidia Corp (NVDA).

The top 10 holdings account for about 21.27% of total assets under management.

Performance and RiskQUS seeks to match the performance of the MSCI USA Factor Mix A-Series Index before fees and expenses. The MSCI USA Factor Mix A-Series Capped Index seeks to measure the equity market performance of large and mid-cap companies across the U.S. equity market.

The ETF has added roughly 1.94% so far this year and it's up approximately 11.4% in the last one year (as of 02/13/2026). In the past 52-week period, it has traded between $140.84 and $179.90.

The ETF has a beta of 0.87 and standard deviation of 11.92% for the trailing three-year period, making it a medium risk choice in the space. With about 548 holdings, it effectively diversifies company-specific risk.

AlternativesState Street SPDR MSCI USA StrategicFactors ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, QUS is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO) track a similar index. While iShares Core S&P 500 ETF has $752.28 billion in assets, Vanguard S&P 500 ETF has $851.55 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.

Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Designed to provide broad exposure to the Large Cap Growth segment of the US equity market, the iShares Nasdaq Top 30 Stocks ETF (QTOP - Free Report) is a passively managed exchange traded fund launched on October 24, 2024.

The fund is sponsored by Blackrock. It has amassed assets over $266.26 million, making it one of the average sized ETFs attempting to match the Large Cap Growth segment of the US equity market.

Why Large Cap GrowthLarge cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Growth stocks have higher than average sales and earnings growth rates. While these are expected to grow faster than the broader market, they also have higher valuations. Also, growth stocks are a type of equity that carries more risk compared to others. They are likely to outperform value stocks in strong bull markets but over the longer-term, value stocks have delivered better returns than growth stocks in almost all markets.

CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.

Annual operating expenses for this ETF are 0.2%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0.4%.

Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector -- about 58.2% of the portfolio. Telecom and Consumer Discretionary round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 11.97% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).

The top 10 holdings account for about 63.42% of total assets under management.

Performance and RiskQTOP seeks to match the performance of the NASDAQ-100 TOP 30 INDEX before fees and expenses. The Nasdaq-100 Top 30 Index composes of the 30 largest companies by market capitalization within the Nasdaq 100 Index.

The ETF has lost about 3.22% so far this year and is up about 15.57% in the last one year (as of 02/13/2026). In the past 52-week period, it has traded between $21.09 and $33.19.

The ETF has a beta of 1.18 and standard deviation of 22.8% for the trailing three-year period. With about 35 holdings, it has more concentrated exposure than peers.

AlternativesiShares Nasdaq Top 30 Stocks ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, QTOP is an outstanding option for investors seeking exposure to the Style Box - Large Cap Growth segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Vanguard Growth ETF (VUG) and the Invesco QQQ (QQQ) track a similar index. While Vanguard Growth ETF has $194.73 billion in assets, Invesco QQQ has $396.12 billion. VUG has an expense ratio of 0.03% and QQQ charges 0.2%.

Bottom-LineAn increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the iShares Russell Top 200 ETF (IWL - Free Report) is a passively managed exchange traded fund launched on September 22, 2009.

The fund is sponsored by Blackrock. It has amassed assets over $2.05 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap BlendLarge cap companies usually have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.

Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.

CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 0.91%.

Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector -- about 36.7% of the portfolio. Financials and Telecom round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 8.69% of total assets, followed by Apple Inc (AAPL) and Microsoft Corp (MSFT).

The top 10 holdings account for about 44.62% of total assets under management.

Performance and RiskIWL seeks to match the performance of the Russell Top 200 Index before fees and expenses. The Russell Top 200 Index is a float-adjusted, capitalization-weighted index that measures the performance of the largest capitalization sector of the U.S. equity market.

The ETF has lost about 1.18% so far this year and it's up approximately 13.93% in the last one year (as of 02/13/2026). In the past 52-week period, it has traded between $122.36 and $173.37.

The ETF has a beta of 1.00 and standard deviation of 15% for the trailing three-year period, making it a medium risk choice in the space. With about 204 holdings, it effectively diversifies company-specific risk.

AlternativesiShares Russell Top 200 ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IWL is a reasonable option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Core S&P 500 ETF (IVV) and the Vanguard S&P 500 ETF (VOO) track a similar index. While iShares Core S&P 500 ETF has $752.28 billion in assets, Vanguard S&P 500 ETF has $851.55 billion. IVV has an expense ratio of 0.03% and VOO charges 0.03%.

Bottom-LineAn increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Launched on June 28, 2017, the Goldman Sachs ActiveBeta U.S. Small Cap Equity ETF (GSSC - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Small Cap Blend segment of the US equity market.

The fund is sponsored by Goldman Sachs Funds. It has amassed assets over $886.20 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.

Why Small Cap BlendThere's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.

Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.

CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.2%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.13%.

Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Industrials sector -- about 19.1% of the portfolio. Financials and Healthcare round out the top three.

Looking at individual holdings, Us Dollar (USD) accounts for about 0.52% of total assets, followed by Credo Technology Group Holding Ltd (CRDO) and Ies Holdings Inc. (IESC).

The top 10 holdings account for about 3.62% of total assets under management.

Performance and RiskGSSC seeks to match the performance of the Goldman Sachs ActiveBeta U.S. Small Cap Equity Index before fees and expenses. The Goldman Sachs ActiveBeta U.S. Small Cap Equity Index is designed to deliver exposure to equity securities of small capitalization U.S. issuers.

The ETF return is roughly 3.68% so far this year and is up about 13.09% in the last one year (as of 02/13/2026). In the past 52-week period, it has traded between $55.86 and $81.24.

The ETF has a beta of 1.04 and standard deviation of 20.27% for the trailing three-year period. With about 1345 holdings, it effectively diversifies company-specific risk.

AlternativesGoldman Sachs ActiveBeta U.S. Small Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, GSSC is a good option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $75.82 billion in assets, iShares Core S&P Small-Cap ETF has $95.32 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.

Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

A smart beta exchange traded fund, the Goldman Sachs Equal Weight U.S. Large Cap Equity ETF (GSEW - Free Report) debuted on 09/12/2017, and offers broad exposure to the Style Box - Large Cap Blend category of the market.

What Are Smart Beta ETFs?The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.

This kind of index follows this same mindset, as it attempts to pick stocks that have better chances of risk-return performance; non-cap weighted strategies base selection on certain fundamental characteristics, or a mix of such characteristics.

While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.

Fund Sponsor & IndexThe fund is managed by Goldman Sachs Funds, and has been able to amass over $1.57 billion, which makes it one of the larger ETFs in the Style Box - Large Cap Blend. Before fees and expenses, GSEW seeks to match the performance of the Solactive US Large Cap Equal Weight Index.

The Solactive US Large Cap Equal Weight Index is an equal-weight version of the Solactive US Large Cap Index including equity securities of approximately 500 of the largest U.S. companies.

Cost & Other ExpensesSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for GSEW are 0.09%, which makes it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.48%.

Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

GSEW's heaviest allocation is in the Information Technology sector, which is about 16.9% of the portfolio. Its Industrials and Financials round out the top three.

Looking at individual holdings, Rocket Lab Corp (RKLB) accounts for about 0.38% of total assets, followed by Sandisk Llc (SNDK) and Ast Spacemobile Inc (ASTS).

Its top 10 holdings account for approximately 2.93% of GSEW's total assets under management.

Performance and RiskYear-to-date, the Goldman Sachs Equal Weight U.S. Large Cap Equity ETF has added roughly 2.9% so far, and is up roughly 11.27% over the last 12 months (as of 02/13/2026). GSEW has traded between $67.22 $89.12 in this past 52-week period.

The fund has a beta of 1.00 and standard deviation of 14.37% for the trailing three-year period. With about 501 holdings, it effectively diversifies company-specific risk .

AlternativesGoldman Sachs Equal Weight U.S. Large Cap Equity ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.

iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard S&P 500 ETF (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $752.28 billion in assets, Vanguard S&P 500 ETF has $851.55 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend

Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

A choppy January turned into a bruising start to February after the company reported a rare earnings miss last week and unveiled a sharply higher capital expenditure forecast that rattled investors.

This page has not been authorized, sponsored, or otherwise approved or endorsed by the companies represented herein. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc.

Copyright 2026 Zacks Investment Research 101 N Wacker Drive, Floor 15, Chicago, IL 60606

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +23.83% per year. These returns cover a period from January 1, 1988 through January 5, 2026. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.

Visit Performance Disclosure for information about the performance numbers displayed above.

Visit www.zacksdata.com to get our data and content for your mobile app or website.

Real time prices by BATS. Delayed quotes by Sungard.

NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.

This site is protected by reCAPTCHA and the Google Privacy Policy, DMCA Policy and Terms of Service apply.

HomeStock IdeasLong IdeasIndustrial 

SummaryInnovative Aerosystems delivered strong 1Q26 results, with revenue up 36.5% to $21.8 million and EPS of $0.25.ISSC's profitability surged, with gross margin expanding to 54.5% and operating income rising to $6.3 million, driven by higher-margin aftermarket and disciplined costs.Management expects flat organic revenue year-over-year due to F-16 revenue pull-forward but forecasts sequential growth and reaffirms long-term $250M revenue and 25–30% EBITDA margin targets.The F-16 backlog remains robust despite temporary production bottlenecks; Honeywell acquisition integration is enhancing recurring military and aftermarket revenue opportunities. Flight Video & Photo/iStock Editorial via Getty Images

Thesis: Strong earnings see a stock boost Innovative Aerosystems (ISSC) reported a Q1 '26 non-GAAP EPS of $0.25 with revenue coming in at about $21.8 million, a figure up 36.5% year over year. We’re seeing growth driven by strong commercial aftermarket demand. As for

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated November 25, 2025 to its short form base shelf prospectus dated October 31, 2025.

San Antonio, Texas--(Newsfile Corp. - February 13, 2026) - BUZZ High Performance Computing ("BUZZ"), the Canadian Tier-III high-performance computing ("HPC") data center platform of HIVE Digital Technologies Ltd. (TSXV: HIVE) (NASDAQ: HIVE) (FSE: YO0) (BVC: HIVECO) ("HIVE" or the "Company"), today announced a major step forward in its AI cloud strategy, signing customer agreements representing approximately $30 million in total contract value over two-year fixed terms, subject to performance obligations and deployment milestones (all amounts in US dollars, unless otherwise indicated).

Building on four years of experience operating GPU infrastructure, BUZZ is accelerating its expansion as HIVE's AI engine, complementing the Company's established Tier-I hashrate services provider and reinforcing its position as a twin-engine leader in next-generation digital infrastructure.

The new contracts underpin the initial phase of BUZZ's AI-optimized GPU deployment at its Canada West location in Manitoba, with compute capacity expected to come online during the quarter ending March 31, 2026. The first phase consists of 504 liquid-cooled Dell server-based GPUs, purpose-built for high-performance AI and HPC workloads.

Based on executed contracts, current pricing, and deployment schedules, management expects this initial phase to generate approximately $15 million in annual recurring revenue ("ARR") to BUZZ's cloud business once fully operational. Upon full deployment, management expects total annualized revenue attributable to HIVE's HPC segment, driven by BUZZ, to grow from approximately $20 million currently to roughly $35 million, reflecting strong contracted demand for BUZZ's AI cloud platform. These projections are subject to capital expenditures, operating costs, customer utilization levels, and other risk factors described herein, and actual results may vary.

To support this growth, the Company expects to incur capital expenditures related to GPU acquisition, supporting electrical and cooling infrastructure, and working capital requirements. Operating expenses are expected to include power, hosting, maintenance, staffing, and network costs. BUZZ continues to expand capacity at its Canada West site in alignment with executed customer agreements.

Management Commentary

Frank Holmes, Executive Chairman of HIVE, commented:

"We are entering 2026 with strong momentum in our HPC and GPU cloud business. HIVE has built a track record as one of the longest-standing publicly traded crypto Tier-I data center operators, performing through multiple market cycles while protecting cash flow and balance sheet strength. Now, with BUZZ, we are leveraging that foundation to build a high-growth AI cloud platform spanning Canada, Sweden, and Paraguay.

Tier-I data centers for hashrate services typically require approximately $1 million per megawatt of infrastructure, whereas Tier-III facilities supporting advanced GPU clusters can require materially higher capital intensity due to premium GPU hardware, redundant power architecture, and advanced cooling systems. Industry benchmarks suggest that constructing and equipping a comparable fully self-funded Tier-III facility with similar GPU capacity could require approximately $70 million in capital expenditures, depending on site conditions, financing structure, vendor pricing, and market dynamics.

Through vendor financing arrangements for GPUs and strategic Tier-III data center partnerships, we are scaling efficiently while reducing upfront capital intensity compared to a fully self-funded build. Where HIVE owns land and buildings and operates its Tier-I facilities, we are pursuing selective Tier-III conversions and colocation strategies for HPC. This showcases our vertically integrated model and diversified revenue streams from both HPC colocation and GPU AI cloud services, reinforcing HIVE's dual-engine strategy of hashrate services and high-performance computing."

Aydin Kilic, President and Chief Executive Officer of HIVE, added:

"Our vision is to scale our HPC GPU AI cloud business toward approximately $140 million in ARR over the next year, subject to market conditions and successful infrastructure deployment. As we execute, this growth will be supported by continued investment in infrastructure and operations. In our previous earnings webcast, we outlined a target deployment of 2,000 AI-optimized GPUs at our Canada West facility this year. The initial 504-GPU deployment is already backed by executed customer agreements representing approximately $30 million in total contract value over two years, subject to performance obligations and deployment milestones.

This is just the beginning. Demand for long-term access to high-performance, power-efficient AI compute continues to expand globally, and we are excited to further scale our GPU cloud business throughout 2026."

Craig Tavares, President and Chief Operating Officer of BUZZ HPC, commented:

"Canada requires more sovereign AI compute capacity, both to serve domestic workloads and to support global AI companies from a secure Canadian base. With Dell and Bell Canada as key partners, we are scaling GPU capacity with the infrastructure, connectivity, and resiliency needed to compete on a global stage.

BUZZ was recently recognized by SemiAnalysis for having one of the fastest data center networks globally and earned a Bronze rating in their ClusterMAX report, validating our technical architecture and execution capabilities.

Launching this cluster in Canada West marks a significant milestone. It expands BUZZ's national footprint and advances our vision of coast-to-coast AI infrastructure, with commercial-grade clusters operating at scale to serve both sovereign workloads and international demand. Under HIVE's dual-engine model, BUZZ is positioned to be a powerful growth catalyst as we accelerate into the global AI supercycle."

About HIVE Digital Technologies Ltd.

Founded in 2017, HIVE Digital Technologies Ltd. is the first publicly listed company to mine digital assets powered by green energy. Today, HIVE builds and operates next-generation Tier-I and Tier-III data centers across Canada, Sweden, and Paraguay, serving both Bitcoin and high-performance computing clients. HIVE's twin-turbo engine infrastructure-driven by hashrate services and GPU-accelerated AI computing-delivers scalable, environmentally responsible solutions for the digital economy.

For more information, visit hivedigitaltech.com, or connect with us on:

X: https://x.com/HIVEDigitalTech
YouTube: https://www.youtube.com/@HIVEDigitalTech
Instagram: https://www.instagram.com/hivedigitaltechnologies/
LinkedIn: https://linkedin.com/company/hiveblockchain

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

Forward-Looking Information

Except for the statements of historical fact, this news release contains "forward-looking information" within the meaning of the applicable Canadian and United States securities legislation and regulations that is based on expectations, estimates and projections as at the date of this news release. "Forward-looking information" in this news release includes but is not limited to: statements regarding deployment timelines, projected annual recurring revenue, anticipated utilization, capital expenditures, operating costs, future GPU capacity, the Company's objective to scale its HPC GPU AI cloud business, and other forward-looking information concerning the intentions, plans and future actions of the parties to the transactions described herein and the terms thereon.

Factors that could cause actual results to differ materially from those described in such forward looking information include, but are not limited to: delays in equipment delivery or commissioning, changes in customer demand, counterparty credit risk, fluctuations in power and operating costs, competitive pricing pressures, regulatory developments, capital availability, and geopolitical conditions, and other related risks as more fully set out in the Company's disclosure documents under the Company's filings at www.sec.gov/EDGAR and www.sedarplus.ca.

The forward-looking information in this news release reflects the Company's current expectations, assumptions, and/or beliefs based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company's objectives, goals or future plans, the timing thereof and related matters. The Company has also assumed that no significant events will occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance, and accordingly, undue reliance should not be put on such information due to its inherent uncertainty. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether because of new information, future events or otherwise, other than as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/283812

Source: HIVE Digital Technologies Ltd.

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

Contact Us

TEL AVIV, Israel, Feb. 13, 2026 (GLOBE NEWSWIRE) -- Radware® (NASDAQ: RDWR), a global leader in application security and delivery solutions for multi-cloud environments, today announced that its board of directors has authorized a new plan to repurchase up to $80 million of its issued and outstanding ordinary shares (the “2026 Plan”). The 2026 Plan will expire on March 15, 2027.

The 2026 Plan authorizes management to repurchase ordinary shares, from time to time, in open market transactions, in privately negotiated transactions or in other legally permissible ways depending on market conditions, share price, trading volume and other factors. Such repurchases will be made in accordance with applicable U.S. securities laws and regulations, including Rule 10b-18 under the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and applicable Israeli law. The Company may repurchase all or a portion of the authorized repurchase amount pursuant to a plan that is compliant with Rule 10b5-1 of the Exchange Act that is designed to facilitate these purchases. The share repurchase plan does not obligate the Company to repurchase any specific number of shares and may be suspended or terminated at any time at management’s discretion.

About Radware

Radware® (NASDAQ: RDWR) is a global leader in application security and delivery solutions for multi-cloud environments. The company’s cloud application, infrastructure, and API security solutions use AI-driven algorithms for precise, hands-free, real-time protection from the most sophisticated web, application, and DDoS attacks, API abuse, and bad bots. Enterprises and carriers worldwide rely on Radware’s solutions to address evolving cybersecurity challenges and protect their brands and business operations while reducing costs. For more information, please visit the Radware website.

Radware encourages you to join our community and follow us on: Facebook, LinkedIn, Radware Blog, X, and YouTube.

©2026 Radware Ltd. All rights reserved. Any Radware products and solutions mentioned in this press release are protected by trademarks, patents, and pending patent applications of Radware in the U.S. and other countries. For more details, please see: https://www.radware.com/LegalNotice/. All other trademarks and names are property of their respective owners.

The contents of any website or hyperlinks mentioned in this press release are for informational purposes and the contents thereof are not part of this press release.

Contacts
Investor Relations:
Yisca Erez, +972-72-3917211, [email protected]

Media Contacts:
Gina Sorice [email protected]  

Safe Harbor Statement

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements made herein that are not statements of historical fact, including statements about Radware’s plans, outlook, beliefs, or opinions, are forward-looking statements. Generally, forward-looking statements may be identified by words such as “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could.” Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results, expressed or implied by such forward-looking statements, could differ materially from Radware’s current forecasts and estimates. Factors that could cause or contribute to such differences include, but are not limited to: the impact of global economic conditions, including as a result of the state of war declared in Israel in October 2023 and instability in the Middle East, the war in Ukraine, tensions between China and Taiwan, financial and credit market fluctuations (including elevated interest rates), impacts from tariffs or other trade restrictions, inflation, and the potential for regional or global recessions; our dependence on independent distributors to sell our products; our ability to manage our anticipated growth effectively; our business may be affected by sanctions, export controls, and similar measures, targeting Russia and other countries and territories, as well as other responses to Russia’s military conflict in Ukraine, including indefinite suspension of operations in Russia and dealings with Russian entities by many multi-national businesses across a variety of industries; the ability of vendors to provide our hardware platforms and components for the manufacture of our products; our ability to attract, train, and retain highly qualified personnel; intense competition in the market for cybersecurity and application delivery solutions and in our industry in general, and changes in the competitive landscape; our ability to develop new solutions and enhance existing solutions; the impact to our reputation and business in the event of real or perceived shortcomings, defects, or vulnerabilities in our solutions, if our end-users experience security breaches, or if our information technology systems and data, or those of our service providers and other contractors, are compromised by cyber-attackers or other malicious actors or by a critical system failure; our use of AI technologies that present regulatory, litigation, and reputational risks; risks related to the fact that our products must interoperate with operating systems, software applications and hardware that are developed by others; outages, interruptions, or delays in hosting services; the risks associated with our global operations, such as difficulties and costs of staffing and managing foreign operations, compliance costs arising from host country laws or regulations, partial or total expropriation, export duties and quotas, local tax exposure, economic or political instability, including as a result of insurrection, war, natural disasters, and major environmental, climate, or public health concerns; our net losses in the past and the possibility that we may incur losses in the future; a slowdown in the growth of the cybersecurity and application delivery solutions market or in the development of the market for our cloud-based solutions; long sales cycles for our solutions; risks and uncertainties relating to acquisitions or other investments; risks associated with doing business in countries with a history of corruption or with foreign governments; changes in foreign currency exchange rates; risks associated with undetected defects or errors in our products; our ability to protect our proprietary technology; intellectual property infringement claims made by third parties; laws, regulations, and industry standards affecting our business; compliance with open source and third-party licenses; complications with the design or implementation of our new enterprise resource planning (“ERP”) system; our reliance on information technology systems; our ESG disclosures and initiatives; and other factors and risks over which we may have little or no control. This list is intended to identify only certain of the principal factors that could cause actual results to differ. For a more detailed description of the risks and uncertainties affecting Radware, refer to Radware’s Annual Report on Form 20-F, filed with the Securities and Exchange Commission (SEC), and the other risk factors discussed from time to time by Radware in reports filed with, or furnished to, the SEC. Forward-looking statements speak only as of the date on which they are made and, except as required by applicable law, Radware undertakes no commitment to revise or update any forward-looking statement in order to reflect events or circumstances after the date any such statement is made. Radware’s public filings are available from the SEC’s website at www.sec.gov or may be obtained on Radware’s website at www.radware.com.

Toronto, Ontario--(Newsfile Corp. - February 13, 2026) - Happy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company"), a leading consolidator of emerging restaurant brands, is pleased to announce the grand opening of its newest location for Heal Wellness ("Heal") in Grande Prairie, Alberta, on Saturday, February 14th, 2026. The new location is located at 10712 - 80 Ave, Unit 105 (South 40 Shopping Centre), Grande Prairie, Alberta. Heal Wellness is a fast-growing quick-service restaurant ("QSR") brand specializing in fresh smoothie bowls, açaí bowls, and smoothies, built around clean ingredients and a better-for-you lifestyle.

Happy Belly 1

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6625/283808_49bbd483a4554a59_002full.jpg

"​This Grande Prairie opening represents another step forward as we scale Heal across North America," said Sean Black, Chief Executive Officer of Happy Belly Food Group. "South 40 Shopping Centre is a proven retail destination in the city's southwest node supported by strong vehicle traffic, national tenants, and consistent convenience-led visitation. We continue to pair franchise partners with high-visibility sites as we build Heal into a leading açaí and smoothie bowl brand across Canada."

South 40 Shopping Centre is a 22-acre retail centre located at the intersection of 108 Street and 84 Avenue, shadow-anchored by a major grocer and supported by a strong mix of national retailers and restaurants. The trade area benefits from steady residential growth, an active lifestyle culture, and a growing demand for convenient, health-forward food options-positioning Heal to capture repeat traffic throughout the day from both local residents and the broader regional customer base.

"Heal Wellness continues to expand rapidly across Canada and into the United States, solidifying its position as a leading acai and smoothie bowl brand. With 32 locations now open and more than 176 in development, Heal contributes to Happy Belly's broader portfolio of 666 contractually committed retail franchise locations across multiple emerging brands in various stages of development, construction, and operation. Our predictable and disciplined growth engine continues to deliver measurable results as we expand our brands across Canada and the U.S to create long-term value for our shareholders."

Happy Belly 2

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6625/283808_49bbd483a4554a59_003full.jpg

"We are just getting started," added Sean Black.

About Heal Wellness Heal Wellness was founded with a passion and mission to provide quick, fresh wellness foods that support a busy and active lifestyle. We currently offer a diverse range of smoothie bowls and smoothies. We take pride in meticulously selecting every superfood ingredient on our menu to fuel the body, including acai smoothie bowls, smoothies, and super-seed grain bowls. Our smoothie bowls are crafted with real fruit and enriched with superfoods like acai, pitaya, goji berries, chia seeds, and more.

FranchisingFor franchising inquiries please see www.happybellyfg.com/franchise-with-us/ or contact us at [email protected].

About Happy Belly Food GroupHappy Belly Food Group Inc. (CSE: HBFG) (OTCQB: HBFGF) ("Happy Belly" or the "Company") is a leader in acquiring and scaling emerging food brands. The Company's portfolio includes Heal Wellness, Rosie's Burgers, Yolks Breakfast, Via Cibo Italian Street Food, and others.

Happy Belly 3

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6625/283808_49bbd483a4554a59_004full.jpg

Sean Black
Co-founder, Chief Executive Officer

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this press release, which has been prepared by management.

Cautionary Note Regarding Forward-Looking Statements

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to the Company within the meaning of applicable securities laws. Forward-Looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur and include the future performance of Happy Belly and her subsidiaries. Forward-Looking statements are based on the opinions and estimates at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. There are uncertainties inherent in forward-looking information, including factors beyond the Company's control. There are no assurances that the business plans for Happy Belly described in this news release will come into effect on the terms or time frame described herein. The Company undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by law. The reader is cautioned not to place undue reliance on forward-looking statements. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis and other disclosure filings with Canadian securities regulators, which are posted on www.sedarplus.ca.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/283808

Source: Happy Belly Food Group Inc.

Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.

Contact Us

The most oversold stocks in the consumer staples sector presents an opportunity to buy into undervalued companies.