Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Celsius Holdings To Contact Him Directly To Discuss Their Options
If you purchased or acquired securities in Celsius Holdings between February 21, 2025 and June 3, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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New York, New York--(Newsfile Corp. - October 30, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Celsius Holdings, Inc. (""Celsius Holdings" or the "Company") (NASDAQ: CELH) and reminds investors of the November 3, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) Defendants' products failed to adequately disclose the cardiac risks of consuming Alani Nu products; (ii) by marketing Alani Nu drinks to consumers under the age of 18, the Company was marketing its products to individuals who were particularly susceptible to known health risks posed by those products; (iii) the foregoing created a non-speculative risk that Alani Nu consumers would suffer potentially fatal adverse health events; (iv) the foregoing, once revealed, was likely to have a significant negative impact on the Company's business and reputation; and (v) as a result, Defendants' public statements were materially false and misleading at all relevant times.
On April 9, 2026, NBC News and local news outlet MyRGV reported that the family of 17-year old Texas cheerleader Larissa Rodriguez had filed a wrongful death lawsuit against distributors of Alani Nu, alleging that Rodriguez died from an enlarged heart caused by drinking Alani Nu energy drinks and that the drinks "had inadequate warnings about the serious cardiac risks" of drinking Alani Nu. On this news, Celsius's stock price fell $1.52 per share, or 4.18%, to close at $34.86 per share on April 10, 2026.
On June 4, 2026, Texas Attorney General Ken Paxton announced an investigation into Celsius over concerns that its high-caffeine energy drinks are being marketed to children and teens, specifically examining whether Celsius and its Alani Nu subsidiary had violated the Texas Deceptive Trade Practices Act by misrepresenting the safety of their products. On news of the investigation, Celsius's stock price fell $2.26 per share, or 7.53%, to close at $27.75 per share on June 4, 2026.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Celsius Holdings's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Celsius Holdings class action, go to www.faruqilaw.com/CELH or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Frequently Asked Questions (FAQ) for Investors Regarding the Celsius Holdings Securities Class Action Lawsuit:
What is the Celsius Holdings securities fraud lawsuit about?
A securities fraud class action lawsuit has been filed against Celsius Holdings, Inc. (NASDAQ: CELH) on behalf of investors who purchased the company's securities during the Class Period. The lawsuit alleges that Defendants made false and/or misleading statements and failed to disclose that Alani Nu products did not adequately warn consumers of cardiac risks associated with their consumption, and that the company allegedly marketed those products to individuals under the age of 18 who were particularly susceptible to those known health risks. The complaint further alleges that these undisclosed facts created a non-speculative risk that Alani Nu consumers could suffer potentially fatal adverse health events. On April 9, 2026, news reports emerged about a wrongful death lawsuit filed by the family of a 17-year-old Texas cheerleader who allegedly died from an enlarged heart attributed to Alani Nu consumption, causing Celsius's stock to decline approximately 4.18%. The allegations were compounded on June 4, 2026, when the Texas Attorney General announced an investigation into whether Celsius and its Alani Nu subsidiary violated the Texas Deceptive Trade Practices Act by misrepresenting product safety, causing a further stock decline of approximately 7.53%.
Who may be eligible to participate in the lawsuit?
Investors who purchased or otherwise acquired securities of Celsius Holdings, Inc. (NASDAQ: CELH) on the NASDAQ exchange between February 21, 2025 and June 3, 2026, inclusive, may be eligible to participate in this class action lawsuit. Eligibility to participate is not limited to those who apply to serve as lead plaintiff; any investor who purchased Celsius Holdings securities during the Class Period and suffered losses may potentially share in any recovery obtained. Investors are encouraged to review their trading records to determine whether their purchases fall within the defined Class Period. Those with questions about their eligibility are encouraged to consult with counsel to evaluate their options.
What is a lead plaintiff, and how can I seek appointment?
A lead plaintiff is a court-appointed representative who serves on behalf of all class members and plays an active role in overseeing the litigation, including working with counsel to direct the prosecution of the case. Under the Private Securities Litigation Reform Act, any member of the proposed class may move the court for appointment as lead plaintiff, and the court generally appoints the movant with the largest financial interest in the relief sought who also satisfies applicable legal requirements. The deadline to file a motion for appointment as lead plaintiff is the lead plaintiff deadline applicable to this case, and investors wishing to be considered for this role must act before that date. Importantly, investors are not required to seek appointment as lead plaintiff in order to participate in the lawsuit or to share in any monetary recovery that may result. Those interested in the lead plaintiff role are encouraged to consult with qualified securities litigation counsel promptly to allow sufficient time to prepare and file the necessary motion.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Celsius Holdings securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/321595
Source: Faruqi & Faruqi LLP
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NEW YORK, Oct. 30, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Celsius Holdings, Inc. (NASDAQ: CELH) and certain of its officers. This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Celsius securities between February 21, 2025 and June 3, 2026, both dates inclusive (the “Class Period”).
Created in partnership with Terp Bros, the free six-module program provided independent New York dispensary owners with hands-on training in compliance, operations, marketing and finance
, /PRNewswire/ -- Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) ("Curaleaf"), a leading international provider of consumer cannabis products, today announced the graduation of the inaugural class of its New York Incubator Program, a free program designed to bring independent dispensary owners together and help them build sustainable, profitable and compliant businesses through practical education, open dialogue, peer-to-peer learning and continued access to Curaleaf's experts. Developed in partnership with Jeremy Rivera, CEO of Terp Bros, the program reflects Curaleaf's continued commitment to supporting independent retailers and contributing to the long-term strength of New York's cannabis community.
"New York is more than an important market for Curaleaf, it is home. As a born and raised New Yorker, I care deeply about building an industry here that creates lasting opportunities for entrepreneurs, consumers, and communities," said Boris Jordan, Chairman and CEO, Curaleaf. "Independent retailers are essential to the future of this market, and supporting their success is a commitment that requires action. Jeremy Rivera has become an influential voice in New York cannabis because he understands the realities facing independent operators and consistently advocates for a stronger, more collaborative industry. When Jeremy approached us with this idea, we saw an opportunity to combine that perspective with Curaleaf's operating experience and resources. We are proud of what this first class accomplished and look forward to continuing this work in New York and beyond."
The first class brought together owners and general managers from 13 independent dispensaries across New York. From April through September 2026, Curaleaf experts led monthly sessions across six areas:
Compliance: New York regulations, METRC seed-to-sale tracking and OCM reportingAssortment, Pricing & Promotions: Balancing premium and value brands and developing promotional strategiesRetail Operations: Staffing, productivity metrics, store layout, and back-of-house controlsRetail Marketing: Local search visibility, customer communication, and loyaltyBusiness Performance Reporting: Financial and operating KPIs, inventory health and competitive benchmarkingAccounting & Tax: Internal controls, cash management, Section 280E and New York cannabis taxBeyond the curriculum, the program was built on a simple principle: a no-strings-attached environment focused on sharing knowledge and building up New York's independent retail community. Each session created space for operators who often compete for the same customers to compare notes, trade practical solutions and build relationships that extend beyond the classroom.
The program concluded on September 23 with an in-person session at Terp Bros in Ozone Park, Queens. Participants leave the program with a network of peers they can continue to lean on and ongoing access to Curaleaf's experts, who will continue answering questions and serving as a resource as their businesses grow.
"When I brought the idea to Boris, he immediately understood what we were trying to build and was open to finding a meaningful way for Curaleaf to support it," said Rivera. "Curaleaf was willing to step up, put real resources behind the idea and engage with independent operators as partners. Having the largest cannabis company in the world on our side, sharing its knowledge and listening to what smaller operators are experiencing, sends an important message. Independent dispensaries do not have to build this market alone, and this program showed what can happen when different parts of the industry come together."
Participants were selected through an open application process available to independent New York retailers. The sessions were structured as open discussions rather than lectures, enabling operators at every stage, from first-time single-store owners to experienced multi-store groups, to learn from Curaleaf's experts and, just as importantly, from one another.
The inaugural class represents the latest step in Curaleaf's effort to translate its commitment to independent retailers into practical support. Through education, access to subject-matter experts, and an ongoing forum for collaboration, the program provided participants with tools they could apply directly within their businesses while strengthening connections across New York's independent retail community.
Curaleaf plans to open applications for the next New York class in December of this year and is exploring opportunities to expand the program and its community into additional markets. Retailers interested in joining a future class can contact [email protected] or [email protected].
About Curaleaf Holdings
Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) ("Curaleaf") is a leading international provider of consumer products in cannabis with a mission to enhance lives by cultivating, sharing and celebrating the power of the plant. As a high-growth cannabis company known for quality, expertise and reliability, the Company and its brands, including Curaleaf, Select, Grassroots, FIND, Dark Heart, and Anthem, provide industry-leading service, product selection and accessibility across the medical and adult-use markets. Curaleaf International is powered by a strong presence in all stages of the supply chain. Its unique distribution network throughout Europe, Canada and Australasia brings together pioneering science and research with cutting-edge cultivation, extraction and production. Curaleaf is listed on the Toronto Stock Exchange under the symbol CURA and trades on the OTCQX market under the symbol CURLF. For more information, please visit https://ir.curaleaf.com.
Forward-Looking Statements
This media advisory contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward–looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as "plans", "expects" or "proposed", "is expected", "intends", "anticipates", or "believes", or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. More particularly and without limitation, this news release contains forward-looking statements and information concerning the completion of an incubator program for independent dispensary owners in New York. Such forward-looking statements and information reflect management's current beliefs and are based on assumptions made by and information currently available to the Company with respect to the matter described in this news release. Forward-looking statements involve risks and uncertainties, which are based on current expectations as of the date of this release and subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Additional information about these assumptions and uncertainties is discussed in the Company's Form 8-K dated August 5, 2026 together with the annual report on Form 10-K for the year ended December 31, 2025 and the quarterly report on Form 10-Q for the quarter ended March 31, 2026, attached as exhibits thereto, as well as the Form 10-Q for the quarter ended June 30, 2026, each of which documents have been filed on the Company's EDGAR profile at www.sec.gov/edgar and SEDAR+ profile at www.sedarplus.ca, and as described from time to time in documents filed by the Company with the U.S. Securities and Exchange Commission and the Canadian securities regulatory authorities. Forward-looking statements contained herein are made only as to the date of this press release and we undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. We caution investors not to place considerable reliance on the forward-looking statements contained in this press release. The Toronto Stock Exchange has not reviewed, approved or disapproved the content of this news release.
BENSALEM, Pa.--(BUSINESS WIRE)--Investors who suffered losses on Everest Group, Ltd. ("Everest" or the "Company") stock may have claims to recover those losses. The Law Offices of Howard G. Smith today reported that it is conducting a securities fraud investigation on behalf of Everest Group, Ltd. (NYSE: EG) investors into whether the Company may have violated the federal securities laws. The investigation comes after a October 27, 2025 disclosure concerning Everest Group, Ltd.Investors with los.
Americké ropné koncerny ExxonMobil a Chevron v letošních prvních třech čtvrtletích prudce zvýšily zisky. Firmy těží z růstu cen pohonných hmot, který je důsledkem americko-izraelské války s Íránem a války mezi Ruskem a Ukrajinou, píše agentura Reuters. Společnost ExxonMobil dnes oznámila, že od ledna do září zvýšila upravený zisk na téměř 41 miliard dolarů (zhruba 890 miliard Kč) z 22,5 miliardy dolarů před rokem. Upravený zisk konkurenta Chevron podle dnešní zprávy stoupl na více než 25 miliard dolarů z 10,5 miliardy dolarů před rokem.
Společnost ExxonMobil, která je z hlediska tržní hodnoty největším producentem ropy ve Spojených státech, nyní vydělává více peněz na rafinaci ropy než na její těžbě. Výrazný nárůst zisků v oblasti rafinace zaznamenal rovněž Chevron. Výsledky obou podniků za třetí čtvrtletí vlivem vysokých zisků z rafinace ropy překonaly očekávání analytiků, napsala agentura Reuters.
Firma ExxonMobil podle Reuters uvedla, že pokračuje ve zvyšování investic do svých rafinérií, aby zvýšila produkci paliv. "Je důležité si uvědomit, že vyšší ceny pohonných hmot vytvářejí skutečný tlak na rodiny a podniky," řekl finanční ředitel společnosti Neil Hansen. "Nejsmysluplnější způsob, kterým na to jako firma můžeme reagovat, je využít všech dostupných prostředků ke zvýšení dodávek," dodal.
Vysoké ceny pohonných hmot se staly ve Spojených státech klíčovým tématem před listopadovými volbami, ve kterých se budou americký prezident Donald Trump a jeho Republikánská strana snažit udržet většinu v Kongresu.
Výrazný nárůst zisku dnes oznámila rovněž britská ropná a plynárenská společnost BP. Firma ve třetím čtvrtletí meziročně více než ztrojnásobila upravený čistý zisk na 8,5 miliardy dolarů. Za tři čtvrtletí se zisk vyšplhal na 17,4 miliardy dolarů, zatímco před rokem činil necelých šest miliard dolarů.
For the quarter ended September 2026, ResMed (RMD - Free Report) reported revenue of $1.41 billion, up 5.9% over the same period last year. EPS came in at $2.91, compared to $2.55 in the year-ago quarter.
The reported revenue represents a surprise of +1.66% over the Zacks Consensus Estimate of $1.39 billion. With the consensus EPS estimate being $2.67, the EPS surprise was +8.99%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how ResMed performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Americas- Devices: $436 million compared to the $434.08 million average estimate based on four analysts. The reported number represents a change of +5.5% year over year.Americas- Masks and other: $397 million versus the four-analyst average estimate of $393.72 million. The reported number represents a year-over-year change of +9.9%.Rest of World- Total: $426 million versus $429.11 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +7.9% change.Rest of World- Devices: $283 million versus $285.55 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6% change.Rest of World- Masks and other: $143 million compared to the $143.57 million average estimate based on four analysts. The reported number represents a change of +11.9% year over year.Americas- Total: $833 million versus the four-analyst average estimate of $827.81 million. The reported number represents a year-over-year change of +7.5%.Global revenue- Total Sleep and Breathing Health: $1.26 billion versus the six-analyst average estimate of $1.25 billion. The reported number represents a year-over-year change of +7.8%.Global revenue- Residential Care Software: $155 million versus the six-analyst average estimate of $144.46 million. The reported number represents a year-over-year change of -6.7%.Global revenue- Total Devices: $720 million versus the five-analyst average estimate of $714.5 million. The reported number represents a year-over-year change of +5.8%.Global revenue- Total Masks and other: $540 million versus $535.83 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.4% change.View all Key Company Metrics for ResMed here>>>
Shares of ResMed have returned +14.3% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Lamb Weston (LW - Free Report) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question.
Lamb Weston is a member of the Consumer Staples sector. This group includes 187 individual stocks and currently holds a Zacks Sector Rank of #14. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Lamb Weston is currently sporting a Zacks Rank of #1 (Strong Buy).
Within the past quarter, the Zacks Consensus Estimate for LW's full-year earnings has moved 6.1% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, LW has returned 27.2% so far this year. Meanwhile, the Consumer Staples sector has returned an average of 12% on a year-to-date basis. This means that Lamb Weston is outperforming the sector as a whole this year.
Bunzl PLC (BZLFY - Free Report) is another Consumer Staples stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 36.4%.
The consensus estimate for Bunzl PLC's current year EPS has increased 3.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Lamb Weston belongs to the Food - Miscellaneous industry, which includes 47 individual stocks and currently sits at #215 in the Zacks Industry Rank. This group has lost an average of 1.1% so far this year, so LW is performing better in this area. Bunzl PLC is also part of the same industry.
Investors with an interest in Consumer Staples stocks should continue to track Lamb Weston and Bunzl PLC. These stocks will be looking to continue their solid performance.
Key Takeaways Leidos' Q3 revenue estimate of $4.71 billion implies 5.3% growth, while earnings are expected to decline 0.3%.Strong defense program wins, air defense demand and new intelligence contracts may boost LDOS' revenues.Leidos' Health segment may face revenue pressure, while higher interest expenses could weigh on earnings. Leidos Holdings, Inc. (LDOS - Free Report) is scheduled to release third-quarter 2026 results on Nov. 3, before market open. The company delivered an earnings surprise of 12.41% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors Likely to Influence LDOS’ Q3 ResultsLeidos Holdings’ Homeland segment is likely to have benefited from the company’s collaboration with CoreWeave to provide secure, sovereign AI cloud services for defense, national security and intelligence missions. The collaboration is expected to have expanded Leidos’ AI capabilities, strengthened its offerings in secure cloud infrastructure and mission integration and supported the segment’s top-line performance in the quarter to be reported.
Leidos Holdings’ Intelligence & Digital segment is likely to have benefited from recent contract awards and increased demand from the Intelligence Community in the quarter to be reported.
Leidos’ Health segment is expected to have faced revenue pressure in the third quarter due to changes in the Veterans Benefits Administration medical disability examination program. However, strong demand for medical examinations and technology-driven efficiencies are likely to have helped support margins.
Strong program wins and higher sales volumes, supported by rising geopolitical tensions worldwide and growing demand for integrated air defense systems and counter-UAS programs, may have boosted the Defense segment’s top line.
Robust revenue growth, coupled with disciplined program execution and cost-control initiatives, is expected to have supported the company’s bottom-line performance. However, higher interest expenses may have partially offset these benefits in the quarter to be reported.
Q3 Expectations for LDOSThe Zacks Consensus Estimate for revenues is pegged at $4.71 billion, indicating an increase of 5.3% from the year-ago level.
The consensus estimate for earnings is pegged at $3.04 per share, calling for a decline of 0.3% from the figure recorded a year ago.
What the Zacks Model Unveils for LDOSOur proven model does not conclusively predict an earnings beat for LDOS this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Stocks to ConsiderBelow, we have mentioned players from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.
Dynatrace, Inc. (DT - Free Report) is scheduled to report its second-quarter fiscal 2027 results on Nov. 3, before market open. It has an Earnings ESP of +0.83% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for sales is pegged at $568.1 million, which indicates a 15% rise from the year-ago quarter’s figure. The consensus estimate for earnings stands at 49 cents per share, which calls for an 11.4% improvement from the year-ago quarter’s figure.
Telos Corporation (TLS - Free Report) is slated to report its third-quarter 2026 results on Nov. 9, before market open. It has an Earnings ESP of +5.26% and a Zacks Rank of 1 at present.
The Zacks Consensus Estimate for sales is pegged at $50 million. The consensus estimate for earnings stands at 4 cents per share.
Analog Devices, Inc. (ADI - Free Report) is expected to report its fourth-quarter fiscal 2026 results on Nov. 24, before market open. It has an Earnings ESP of +2.23% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for sales is pegged at $4.32 billion, which implies a 40.6% increase from the year-ago quarter’s figure. The consensus estimate for earnings is pegged at $3.89 per share, indicating a year-over-year surge of 72.1%.
On its third-quarter 2026 earnings call, held on Oct. 22, 2026, EastGroup Properties (EGP -0.17%) raised its 2026 funds from operations guidance, a core measure of real estate cash flow, to $9.65 per share. Steady Sun Belt demand continues to keep portfolio occupancy high across key distribution hubs. A resilient balance sheet enables management to deploy capital while competitors face tighter lending markets.
Three things management said stand out.
1. Shallow Bay Supply Constraints Drive Record Development ExpansionRising construction costs and tighter borrowing terms are making ground-up construction harder for regional developers. EastGroup Properties is leveraging its entitled land bank to expand development starts to a planned $390 million.
Leasing momentum with the development pipeline gave us the confidence to increase our projected development starts to $390 million, which would be a new record for EastGroup.
-- Reid Dunbar, President2. Tighter Capital Liquidity Opens Strategic Acquisition WindowsAs higher interest rates pushed cap rates higher, or the annual cash return on a property purchase, weaker buyers withdrew from negotiations. EastGroup Properties stepped in to purchase $320 million in Sun Belt industrial assets at attractive yields.
Our strong financial position allowed us to take advantage of tighter liquidity in the capital markets. Each of these projects deepens our presence in existing markets, strengthening our platform over the long term.
-- Reid Dunbar, President3. Diverse Demand Drivers Push Re-Leasing Spreads HigherE-commerce growth, advanced manufacturing, and data center suppliers are driving tenant demand near end consumers. This broad activity helped the company complete 2.9 million square feet of second-generation leasing in the quarter.
The demand we're seeing for our properties is diverse and broad-based. That demand is supported by multiple tailwinds, including e-commerce, advanced manufacturing, and data center related uses.
-- Reid Dunbar, PresidentLooking AheadIndustrial tenant demand remains steady across Sun Belt hubs, and management isn't hiding its satisfaction with current momentum. EastGroup Properties retains advantages in shallow bay locations, entitled land, and low leverage while watching pricing discipline.
Market demand has been steady for several consecutive quarters, and regardless of the environment, our goals are to drive FFO per share growth while raising portfolio quality.
-- Marshall Loeb, Chief Executive OfficerGeographic diversification and financial flexibility continue to support long-term compounding.
Our portfolio quality in terms of buildings and markets is continually improving. Our balance sheet is stronger than ever, and we are upgrading our diversity in both our tenant base as well as our geography.
-- Marshall Loeb, Chief Executive OfficerThe Motley Fool recommends EastGroup Properties. The Motley Fool has a disclosure policy.
DoubleVerify (DV) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Key Takeaways KLAC expects advanced packaging revenues to exceed $1.1 billion in 2026, up over 70% year over year.KLAC sees rising demand for laser scanning and Gen 4 tools as chip designs become more complex.KLAC expects advanced packaging growth to outpace the market in 2027, despite supply constraints.
KLA Corporation (KLAC - Free Report) is seeing strong demand for its process control products as AI infrastructure investment increases the need for advanced semiconductors. As chips become more complex, manufacturers need better inspection and measurement tools to identify defects and improve production yields. Advanced packaging is becoming an important growth driver for KLAC, as new chip designs require more sophisticated manufacturing processes.
KLAC expects revenues from its advanced packaging process control systems to reach approximately $1.1 billion or more in 2026, suggesting growth of more than 70% year over year. This is nearly twice the expected growth rate of the advanced packaging market. The company is benefiting from the growing use of advanced packaging in AI infrastructure. Packaging technologies are also adopting more complex wafer manufacturing processes, which increase the need for KLAC's inspection and measurement solutions.
Demand for more advanced inspection tools is also increasing. Hybrid bonding and complex logic devices require higher inspection sensitivity to identify smaller defects. KLAC is seeing demand shift toward more advanced systems, including laser scanning and Gen 4 tools, while its macro inspection products continue to serve as key solutions. The company believes its existing technology portfolio and research and development investments position it well to meet these changing customer needs.
Looking ahead, KLAC expects its advanced packaging business to continue growing faster than the market in 2027. Strong AI infrastructure investment and rising chip complexity should support demand for its process control solutions. As of now, the company will need to manage supply constraints and increase production capacity to meet customer requirements. Overall, advanced packaging is emerging as an important growth driver for KLAC and could support its broader growth outlook over the next few years.
KLAC Faces Tough CompetitionOnto Innovation (ONTO - Free Report) is seeing strong demand for its advanced packaging inspection and metrology solutions as AI chip designs become more complex. In the second quarter of 2026, Onto Innovation's revenues increased 35% year over year to $343 million, while its inspection business grew 30% sequentially, driven by 2.5D logic and high-bandwidth memory applications. The company raised its 2026 advanced packaging growth outlook to approximately 80%, up from its previous expectation of 50%.
Applied Materials (AMAT - Free Report) is also benefiting from increased investment in advanced packaging. The company expects its packaging revenues to grow more than 70% in 2026, supported by demand for HBM, 3D chiplet stacking and AI-related semiconductor technologies. Applied Materials is expanding its portfolio with new plating, chemical mechanical planarization and e-beam systems for advanced packaging. It also expects its process diagnostics and control business, which includes inspection and metrology solutions, to grow more than 50% in 2026 as chipmakers focus on improving production yields and output.
KLAC’s Share Price Performance, Valuation & EstimatesShares of KLA Corporation have risen 37.8% year to date compared with the broader Zacks Computer and Technology sector’s 17.4% growth.
KLAC Stock’s YTD Price Performance
Image Source: Zacks Investment Research
KLAC stock is trading at a premium, with forward 12-month price/earnings of 28.68X compared with the broader sector’s 19.39X. KLA Corporation has a Value Score of D.
KLAC’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KLA Corporation’s fiscal 2027 earnings is currently pegged at $5.44 per share, up by 2 cents over the past 30 days, suggesting 44.7% growth.
Image Source: Zacks Investment Research
KLA Corporation currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ARLINGTON, Va.--(BUSINESS WIRE)--U.S. industrial vacancy is expected to hold steady through 2027, according to a revised forecast from CoStar, a leading global provider of online real estate marketplaces, information and analytics in the property markets. The national industrial vacancy rate came in at 7.3% in the third quarter and is expected to remain at this level through 2027 before gradually declining in 2028. This modest improvement from the previous forecast comes as the recent recovery.
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.
Federal Signal NYSE: FSS reported record third-quarter results for 2026, with higher sales, earnings, orders and operating cash flow supported by growth in its Environmental Solutions Group, acquisitions and aftermarket demand.
Okta (OKTA - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this cloud identity management company have returned +4.3% over the past month versus the Zacks S&P 500 composite's +0.7% change. The Zacks Security industry, to which Okta belongs, has lost 2.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Okta is expected to post earnings of $0.93 per share, indicating a change of +13.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $3.93 points to a change of +12.3% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $4.44 indicates a change of +13% from what Okta is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Okta.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Okta, the consensus sales estimate of $815.52 million for the current quarter points to a year-over-year change of +9.9%. The $3.22 billion and $3.55 billion estimates for the current and next fiscal years indicate changes of +10.4% and +10.1%, respectively.
Last Reported Results and Surprise HistoryOkta reported revenues of $805 million in the last reported quarter, representing a year-over-year change of +10.6%. EPS of $1.05 for the same period compares with $0.91 a year ago.
Compared to the Zacks Consensus Estimate of $792.14 million, the reported revenues represent a surprise of +1.62%. The EPS surprise was +9.38%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Okta is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Okta. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways ORLY's Q3 earnings rose 14% to 97 cents per share, while revenues climbed 9% to $5.12B, beating estimates.Professional sales surged 12.7%, while $39M in tariff refunds helped O'Reilly lift gross margin to 52.4%.ORLY raised its 2026 EPS outlook to $3.25-$3.35 and plans to accelerate store openings to 265-275 in 2027.
O'Reilly Automotive, Inc. (ORLY - Free Report) reported third-quarter 2026 earnings of 97 cents per share, beating the Zacks Consensus Estimate of 92 cents by 5.44%. Earnings increased 14% from 85 cents in the year-ago quarter, supported by robust sales growth and tariff refunds.
Revenues rose 9% year over year to $5.12 billion, surpassing the Zacks Consensus Estimate of $5 billion by 2.49%. Comparable store sales increased 7.2%, reflecting double-digit growth in the professional business and mid-single-digit growth in the do-it-yourself (DIY) business.
O’Reilly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ORLY's Professional Business Drives Sales GrowthSales to professional service provider customers increased 12.7% year over year to $2.60 billion from $2.31 billion. Professional comparable store sales grew slightly more than 10%, making the business the largest contributor to overall comparable sales growth.
Growth in professional comparable sales was evenly split between higher average ticket values and increased transaction counts. Professional customer transactions rose at a mid-single-digit rate, reflecting market share gains. New stores opened in 2025 and 2026 contributed $94 million in incremental sales during the quarter.
O'Reilly's DIY Sales Gain Despite Consumer PressureSales to DIY customers increased 6.2% year over year to $2.45 billion from $2.30 billion. Comparable sales in the retail business grew at a mid-single-digit rate, benefiting from stronger demand for hot weather-related products and higher average ticket values.
DIY transaction counts faced a low-single-digit headwind, indicating pressure on consumers. However, higher ticket values more than offset the decline. Same-SKU inflation exceeded 4% across the combined businesses, primarily driven by petroleum-based products such as motor oil and lubricants.
Management noted that consumers continued prioritizing vehicle maintenance and repair, although lower-income DIY customers remained under greater pressure than higher-income and professional service customers.
ORLY's Margins Expand on Tariff Refund BenefitsGross profit increased 10% year over year to $2.68 billion from $2.44 billion. Gross margin expanded 50 basis points to 52.4%, primarily benefiting from $39 million in tariff refunds received through supplier partners. These refunds contributed 76 basis points to the gross margin rate.
However, petroleum-based categories created approximately 40 basis points of gross margin pressure due to unfavorable product mix and pricing dynamics. Selling, general and administrative expenses increased 8% to $1.58 billion but declined to 30.9% of sales from 31.1%.
Operating income climbed 13% to $1.10 billion, with operating margin improving to 21.4% from 20.7%. Net income increased 8% to $786 million from $726 million.
O'Reilly Expands Its Store NetworkThe company opened 63 new stores across North America during the third quarter, including 54 domestic locations, eight in Mexico and one in Canada. Its total store count reached 6,758 as of Sept. 30, 2026.
Year-to-date net new store openings totaled 173. Management remains confident of achieving its 2026 target of 225-235 openings and announced plans to accelerate expansion to 265-275 net new stores in 2027.
The company continues investing in distribution capacity and automation to support expansion, improve product availability and enhance service efficiency.
ORLY's Cash Flow Strengthens, Buybacks ContinueO'Reilly generated $2.60 billion in operating cash flow during the first nine months of 2026, up from $2.13 billion a year earlier. Capital expenditures totaled $860 million, while free cash flow increased to $1.73 billion from $1.20 billion.
Cash and cash equivalents totaled $194.4 million as of Sept. 30, 2026. Long-term debt was $7.71 billion, compared with $6.02 billion at 2025-end.
During the quarter, the company repurchased 11.8 million shares for $1.03 billion. Approximately $727 million remained available under its repurchase authorization as of Oct. 28, 2026.
O'Reilly Raises 2026 Earnings and Margin OutlookFor 2026, management raised its comparable store sales growth guidance to 5.5-6.5% from 4-6%. Total revenues are projected between $19 billion and $19.3 billion.
Gross margin guidance increased to 51.6-52.1%, while operating margin expectations rose to 19.5-20%. The company now anticipates earnings of $3.25-$3.35 per share.
Operating cash flow is projected at $3.2-$3.6 billion, with capital expenditures of $1.3-$1.4 billion. Free cash flow guidance increased to $1.9-$2.2 billion.
Management expects fourth-quarter gross margin to moderate from the third quarter's tariff-refund-supported level. Same-SKU inflation is also expected to ease, while higher fuel costs and operating expenses could remain near-term pressures.
Other Key Releases From the Auto SpaceGenuine Parts Company (GPC - Free Report) reported third-quarter 2026 adjusted earnings of $2.07 per share, which missed the Zacks Consensus Estimate of $2.09. The bottom line increased 4.5% from $1.98 in the year-ago quarter. Revenues rose 4.2% year over year to $6.52 billion and surpassed the consensus estimate of $6.5 billion. Comparable sales increased 2.9%, led by strong Industrial demand. Genuine Parts ended September with $2.4 billion of liquidity, including $763 million in cash.
General Motors (GM - Free Report) delivered strong third-quarter 2026 results yesterday. Its earnings per share grew 32.2% year over year to $3.70 and topped the Zacks Consensus Estimate of $3.55. Revenues of $50.02 billion increased 3% year over year and outpaced the consensus mark of $48.21 billion. On a further encouraging note, General Motors raised its adjusted automotive free cash flow forecast to $11.5-$12.5 billion from $9.5-$11.5 billion and authorized a $20-billion multi-year share repurchase program.
Tesla (TSLA - Free Report) reported third-quarter 2026 adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 45 cents by 6.67%. However, earnings declined 4% from 50 cents in the year-ago quarter, reflecting higher operating expenses. Tesla’s revenues totaled $28.05 billion, down marginally from $28.1 billion a year ago. The metric surpassed the Zacks Consensus Estimate of $27.78 billion by 0.96%. Tesla has trimmed its 2026 capital expenditure outlook to approximately $20 billion from $25 billion guided earlier.
Cadence Design Systems (CDNS - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this maker of hardware and software products for validating chip designs have returned -2.3%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Computer - Software industry, which Cadence falls in, has gained 5.1%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Cadence is expected to post earnings of $2.23 per share, indicating a change of +12.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +14.2% over the last 30 days.
The consensus earnings estimate of $8.4 for the current fiscal year indicates a year-over-year change of +17.7%. This estimate has changed +4.8% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $9.75 indicates a change of +16.1% from what Cadence is expected to report a year ago. Over the past month, the estimate has changed +3.4%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Cadence.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Cadence, the consensus sales estimate of $1.71 billion for the current quarter points to a year-over-year change of +18.8%. The $6.4 billion and $7.31 billion estimates for the current and next fiscal years indicate changes of +20.8% and +14.2%, respectively.
Last Reported Results and Surprise HistoryCadence reported revenues of $1.63 billion in the last reported quarter, representing a year-over-year change of +22%. EPS of $2.11 for the same period compares with $1.93 a year ago.
Compared to the Zacks Consensus Estimate of $1.61 billion, the reported revenues represent a surprise of +1.43%. The EPS surprise was +3.43%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cadence is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cadence. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
A bullish upgrade tied to Anthropic's upcoming IPO failed to protect Broadcom as a sector-wide chip selloff dragged AI semiconductor names sharply lower, raising fresh doubts about whether the AI spending boom can sustain its momentum.
A bullish analyst call tied to Broadcom’s biggest AI customer isn’t enough to stop a broad chip selloff. Broadcom (NASDAQ:AVGO | AVGO Price Prediction) shares are trading at $327.49 this morning, down 5% from its prior close. DA Davidson upgraded Broadcom to Buy from Neutral on October 30 and raised its price target to $400 from $350, but AI-exposed semiconductor names are leading the market lower.
Over the past month, Broadcom stock is down 8%. Pressure on the group built after the NASDAQ Composite closed more than 1% lower on October 29. Big tech earnings this week, plus signs of a deepening PC slump and memory shortages, have left investors questioning the returns on AI infrastructure spending.
DA Davidson Sees Anthropic Powering Broadcom’s Next Leg DA Davidson expects Anthropic to move ahead with a public listing and secure more funding, followed by a potential OpenAI IPO next year. The firm believes investors underestimate the odds. Yahoo Finance reported that Anthropic’s IPO could start trading as soon as mid-November, a timeline that matters for Broadcom.
Broadcom supplies chips, equipment and financing to Anthropic, and the company has agreed to provide up to $42 billion in financing to support Anthropic’s spending. That relationship could make Anthropic Broadcom’s biggest chip-design customer next year, in DA Davidson’s view. Demand is already visible: Broadcom’s AI semiconductor revenue reached $16.7 billion in Q3 FY2026, up 221% year over year (YoY).
Arm, Qualcomm and Marvell Take Bigger Hits Than Broadcom Arm Holdings (NASDAQ:ARM) stock is at $205.38, down 10%, representing a steep decline amid this group. Even after the slide, Arm stock is up 87% year to date (YTD), leaving room for profit taking ahead of the company’s upcoming earnings report. Spending has weighed on sentiment, too: Arm disclosed on July 29 that its operating margin contracted to 7% from 11% a year earlier.
Qualcomm (NASDAQ:QCOM) stock is at $167.17, also down 10%. Next up is Qualcomm’s Q4 FY2026 report on November 4. The company has guided for revenue of $9.7 billion to $10.5 billion, which means a decline from a year earlier. Guidance from Qualcomm also puts adjusted earnings per share (EPS) at $2.05 to $2.25, below the $3.00 the company earned a year earlier. Handset weakness is the main drag, and Qualcomm expects “approximately a 50% decline from the September to the December quarter” in iPhone-related revenue.
Automotive remains a bright spot, with Qualcomm forecasting another record quarter of strong growth. Longer term, Qualcomm targets more than $40 billion in non-handset revenue by fiscal 2029.
Marvell Technology (NASDAQ:MRVL) stock is at $200.57, down 8%. That pullback comes after a huge run, with Marvell stock up 136% YTD. Bloomberg reported on October 29 that Marvell is close to a megadeal for laser maker Lumentum (NASDAQ:LITE), and the deal talk has unsettled some Marvell shareholders.
How Broadcom’s Business Model Sets It Apart From Rivals Broadcom earns its AI revenue by designing custom accelerators and networking chips for a handful of hyperscale customers, and it pairs that with a VMware-based infrastructure software business. Arm sells chip blueprints, collecting license fees and per-chip royalties while it moves into production silicon, and Qualcomm still leans on smartphone chips and patent licensing, with automotive, Internet of Things (IoT) and data center work as its growth engines. Data center silicon dominates at Marvell, from custom chips to optical interconnects and Ethernet switches.
The memory crunch cuts both ways for chipmakers like Qualcomm. Tight supply helps some suppliers, but it raises costs for PC and smartphone makers, linking this week’s PC-slump signs to Qualcomm’s outlook. On the July 29 call, Qualcomm CEO Cristiano Amon said, “The industry is operating at very high utilization.”
What Anthropic’s IPO and Chip Earnings Mean for Broadcom For Broadcom, the focus now turns to whether Anthropic’s IPO arrives on the reported timeline and whether AI capital spending plans hold up. Qualcomm’s upcoming report and Arm’s results could reset sentiment across the group. All of that AI expansion still has to be powered, cooled and networked by somebody, and we rounded up seven suppliers doing exactly that in a free report on the non-chipmaker names behind the AI boom. For retirement-minded savers, the takeaway is that even well-positioned AI names can drop sharply when the whole sector sells off, and an analyst upgrade rarely stops a sector-wide move.
Supporters of Broadcom point to Anthropic’s growth, the financing tie and surging custom-chip demand. Skeptics counter that doubts about AI returns could keep pressuring the group, and Broadcom’s reliance on a few hyperscale customers leaves the company exposed. A cautious approach may make sense for some investors until the debate over AI spending returns resolves.
Contact [email protected] for any questions or corrections.
BOSTON, Oct. 30, 2026 (GLOBE NEWSWIRE) -- Block & Leviton is investigating Credit Acceptance Corp. (Nasdaq: CACC) for potential securities law violations. Investors who have lost money in their Credit Acceptance investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/cacc.
What is this all about?
Block & Leviton is investigating whether Credit Acceptance and certain of its executives misled investors about how its auto loans were performing compared with the company's own collection forecasts. On its second-quarter 2026 earnings call, executives reportedly said they had 'no concerns' with the forecast and that loan performance was 'very consistent with our initial expectations.' About eight weeks later, on October 29, 2026, the company reported a third-quarter net loss of $56.6 million, compared with net income of $108.2 million a year earlier. The loss was driven by a $291 million cut to expected cash flows on loans made from 2022 through 2026. Management attributed the cut to a new forecasting method and acknowledged 'small but consistent' underperformance among its lowest-rated borrowers, and the stock fell roughly 16% after the announcement.
Who is eligible?
Anyone who purchased Credit Acceptance common stock and has seen their shares fall may be eligible, whether or not they have sold their investment. Investors should contact Block & Leviton to learn more.
What is Block & Leviton doing?
Block & Leviton is investigating whether the Company committed securities law violations and may file an action to attempt to recover losses on behalf of investors who have lost money.
What should you do next?
If you've lost money on your investment, you should contact Block & Leviton to learn more via our case website, by email at [email protected], or by phone at (888) 256-2510.
Whistleblower?
If you have non-public information about Credit Acceptance, you should consider assisting in our investigation or working with our attorneys to file a report with the Securities Exchange Commission under their whistleblower program. Whistleblowers who provide original information to the SEC may receive rewards of up to 30% of any successful recovery. For more information, contact Block & Leviton at [email protected] or by phone at (888) 256-2510.
Why should you contact Block & Leviton?
Block & Leviton is widely regarded as one of the leading securities class action firms in the country. Our attorneys have recovered billions of dollars for defrauded investors and are dedicated to obtaining significant recoveries on behalf of our clients through active litigation in the federal courts across the country. Many of the nation's top institutional investors hire us to represent their interests. You can learn more about us at our website, www.blockleviton.com, call (888) 256-2510 or email [email protected] with any questions.
This notice may constitute attorney advertising.
CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (888) 256-2510
Email: [email protected]
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Hershey (HSY - Free Report) Founded in 1894 and based in Hershey, PA, The Hershey Company is the largest chocolate manufacturer in North America and a global leader in chocolate and non-chocolate confectionery. The company also sells pantry items such as baking ingredients, toppings and beverages. Its portfolio also includes gum and mint refreshment products, protein bars, snack bites and mixes and spreads.
HSY is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Momentum investors should take note of this Consumer Staples stock. HSY has a Momentum Style Score of A, and shares are up 0.6% over the past four weeks.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $8.50 per share. HSY boasts an average earnings surprise of +23.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, HSY should be on investors' short list.
Key Takeaways Hershey maintains its 2027 sales growth outlook of 2-4%, despite consumer pressure and margin risks.HSY's Q3 organic sales rose 0.8% as roughly 11 points of pricing offset a 10-point volume decline.HSY plans a 50% larger innovation pipeline in 2027, while freight and input costs threaten margin recovery. The Hershey Company (HSY - Free Report) maintained its 2027 sales growth outlook during its third-quarter 2026 earnings call, but management acknowledged growing risks to profitability from cautious consumers, freight inflation and higher non-cocoa input costs.
Executives emphasized innovation, targeted pricing and productivity improvements as key growth drivers. However, analyst questions highlighted uncertainty surrounding volume recovery, market share and the timing of margin expansion.
Hershey reported adjusted earnings of $2.64 per share, exceeding the Zacks Consensus Estimate of $2.12, while revenues of $3.28 billion surpassed the $3.25 billion estimate.
Hershey Maintains 2027 Sales Growth OutlookPresident and CEO Kirk Tanner reaffirmed expectations for 2027 sales growth of 2% to 4%, supported by innovation, brand investments and low-single-digit carryover pricing.
However, Tanner acknowledged that continued consumer spending pressure could push growth toward the lower end of that range.
CFO Dave Hulays indicated that the company's initial double-digit earnings growth framework remains achievable under improved conditions. Persistent cost pressures and weaker consumer demand could leave earnings growth below the original framework.
HSY Faces Consumer Pressure and Volume ChallengesHershey's third-quarter organic sales increased 0.8%, supported by approximately 11 percentage points of pricing, while volume declined roughly 10 points.
During the call, UBS questioned weakening confectionery demand. Management highlighted convenience stores as a significant pressure point, with category sales declining 5% in September and weakness continuing into October.
Hulays attributed changing shopping patterns to household financial pressures, including gasoline prices and interest rates. Consumers increasingly favored mass retail, club stores and e-commerce.
Management nevertheless reported improving unit trends across Hershey, Kit Kat, Cadbury and Kisses. Tanner expects further improvement as pricing moderates, although the recovery may be uneven.
Hershey Expands Innovation and Value OfferingsTanner highlighted a planned 50% increase in the company's 2027 innovation pipeline, with new products expected to contribute three times more growth than in 2026.
During questioning from Evercore ISI, management emphasized targeted promotions and price-pack architecture rather than broad price reductions. These initiatives aim to improve affordability while protecting the company's pricing strategy.
Upcoming innovations include Hershey Rolls, new Ice Breakers gum offerings and additional Dot's and Reese's products.
Management also identified premium, sweets, functional and better-for-you categories as expansion opportunities.
Tanner expects stronger innovation, merchandising and advertising to improve competitiveness following market-share pressure.
HSY Targets Margin Recovery Amid Cost InflationThird-quarter adjusted gross margin expanded 1,090 basis points to 42.7%, supported by pricing, productivity savings, tariff refunds and lower net commodity costs.
Hulays expects meaningful margin improvement in 2027, supported partly by the timing of cocoa hedges. However, elevated freight, logistics and other input costs remain obstacles.
Responding to Goldman Sachs, Hulays outlined productivity opportunities involving factory digitization, automation, logistics optimization and data-driven decision-making.
Management continues targeting gross margins in the mid-40% range over the longer term, with that ambition extending into 2028 and beyond.
Hershey's Salty Snacks Business Faces Supply ConstraintsNorth America Salty Snacks revenues increased 22.3% to $392.7 million, benefiting substantially from the LesserEvil acquisition. Organic sales increased 2.3%.
However, segment income declined 17.9% as manufacturing, logistics and marketing expenses increased.
Responding to Wells Fargo, Tanner acknowledged that demand continues to exceed available supply. Manufacturing capacity additions scheduled for the first half of 2027 should improve service levels.
Hulays added that better shipment utilization and logistics efficiency could help reduce costs, although higher freight rates remain a headwind.
HSY Balances Growth Investments With Execution RisksManagement's overarching priority remains restoring volume momentum while strengthening profitability through innovation, productivity and improved execution.
Tanner maintained confidence in the company's controllable growth initiatives, while Hulays emphasized flexibility in allocating investment toward opportunities offering stronger returns.
The 2027 outlook remains sensitive to consumer demand, commodity costs and the pace of operational improvements.
Hershey's Zacks Rank and Style Scores Signal Mixed ProspectsHSY currently carries a Zacks Rank #3 (Hold), reflecting a neutral near-term outlook. Its Growth Score of A indicates favorable growth characteristics, while Value and Momentum Scores of C reflect comparatively moderate attractiveness in those categories. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock's VGM Score of B indicates a favorable combination of value, growth and momentum characteristics. However, the Zacks framework generally favors stocks carrying a Zacks Rank #1 or #2 (Buy) alongside strong Style Scores.
The Zacks Rank remains subject to change as analysts revise earnings estimates following the quarterly results.
Vertiv shares collapsed 34% from their spring peak before a single earnings report sent them surging 25% in a week. Now analysts are split on whether the order book signals a genuine recovery or a temporary reprieve ahead of a…
Vertiv (NYSE:VRT | VRT Price Prediction) trades at $245.95. A stronger-than-expected third quarter just reset expectations for AI infrastructure stocks after a painful slide from spring highs.
Vertiv sells power, cooling and thermal management systems that keep data centers running in more than 130 countries, exactly the kind of picks-and-shovels AI exposure we featured alongside six others in a free report on the suppliers behind the AI buildout. It joined the S&P 500 in March 2026, yet shares fell from $319.09 at its first-quarter report to $211.09 on third-quarter release day. They have since climbed 25.75% in a week.
Triple-Digit Order Growth Powers the Bull Case
Adjusted EPS hit $2.21 against a $1.82 consensus, and revenue of $4.31B rose 61.2%, exceeding the $3.76B estimate. Organic orders grew over 100%, and adjusted operating margin expanded 290 bps to 25.2%. Management raised full-year EPS guidance to $7.10-$7.20.
On the $9.1945 consensus 2027 EPS estimate, shares trade near 27x, with a PEG ratio of 0.688. Catalysts include full native 800-volt DC revenue beginning in 2027 and the newly closed UtilityInnovation Group deal.
Quality Scares and High Volatility Arm the Bears
Trailing P/E is 47, price-to-sales at 8.15, and beta at 2.048. On the call, an analyst raised reports of burned-out compressors and overheating UPS systems. Management granted new products can show a higher initial quality curve, and second-quarter supply-chain problems pushed an estimated $100 million to $150 million of revenue into the third quarter.
Management also flags tariffs, unpredictable customer ordering and possible failure to realize backlog. Power availability, permitting and skilled labor shortages could slow customer projects.
Execution Proof Still Matters Before 2027
Shares are already up 51.92% this year and remain below the $269.86 200-day moving average. Management offered no formal 2027 revenue or margin guidance, so the next milestones are fourth-quarter EPS within the $2.22-$2.28 range and cleaner quality data.
Analysts See 35% Upside as Vertiv Outpaces the S&P 500
The $333 consensus target implies 35.4% upside across 29 analysts. Targets are one input and carry no guarantee. The ratings break down as follows:
Strong Buy: 3
Buy: 22
Hold: 4
Sell: 0
Vertiv’s year-to-date gain of 51.92% compares with 12.84% for the S&P 500. Over one year, Vertiv rose 23.56% against the index’s 11.94%. Shares still sit 35% below the $379.76 52-week high, and the 2026 consensus EPS estimate climbed to 6.7341 from 6.4847 over 90 days.
Vertiv’s Comeback Takes Hold as Earnings Estimates Rise
At $245.95, Vertiv’s outlook rests on its order book.
The selloff priced in a demand slowdown, and the order book points the other way. Orders above 100% growth commonly convert within 12 to 18 months, which gives visibility into 2027. Chairman Dave Cote put it bluntly: “The rumors of our demise have been greatly exaggerated.”
Getting there depends on the fourth-quarter report, a 2027 outlook calling for “continued significant above-market organic sales growth,” and 800-volt DC validation. A net cash balance sheet and $2.6B-$2.8B of expected free cash flow cushion execution stumbles.
The bull case falls apart if orders slow down rapidly, margins slip below the 24% full-year target, or quality complaints turn into lost customers. Given a beta above 2, volatility will stay high either way.
Vertiv trades at a discount to its highs while its earnings estimates keep rising, and that gap frames the debate for investors.
Contact [email protected] for any questions or corrections.
Key Takeaways ATI's Q3 adjusted EPS surged 72% to $1.46, while revenues climbed 26% to $1.42B, beating estimates.ATI raised 2026 EBITDA guidance to $1.19-$1.20B as AA&S margins hit a record 25.8% on favorable pricing.ATI's jet engine revenues jumped 39%, while its $4.3B backlog and capacity expansion support future growth.
ATI Inc. (ATI - Free Report) highlighted accelerating aerospace demand, improved profitability and stronger earnings expectations during its third-quarter 2026 earnings call. Management raised its full-year outlook for the third time this year, supported by favorable pricing, product mix and operational improvements.
Executives emphasized sustained jet engine demand, record profitability in Advanced Alloys & Solutions (AA&S) and expanding production capabilities, while addressing near-term manufacturing costs and capacity constraints.
ATI Q3 Earnings Beat Estimates on Revenue GrowthATI reported third-quarter 2026 adjusted earnings of $1.46 per share, surpassing the Zacks Consensus Estimate of $1.36. Earnings increased 72% year over year from 85 cents per share. Revenues totaled $1.42 billion, exceeding the Zacks Consensus Estimate of $1.32 billion and increasing 26% year over year.
Adjusted EBITDA increased 46% to $327.9 million, while adjusted EBITDA margin expanded 300 basis points to 23%. GAAP earnings increased to $1.37 per share from 78 cents a year earlier.
The company generated adjusted free cash flow of $79.6 million and ended the quarter with a backlog of approximately $4.3 billion, up 20% year over year.
ATI Raises 2026 Outlook for the Third TimeChair, President and chief executive officer Kimberly Fields highlighted another $35 million increase in full-year adjusted EBITDA guidance, following a $125 million upward revision in the previous quarter.
ATI now expects full-year adjusted EBITDA of $1.19-$1.2 billion, representing 39% growth at the midpoint. Adjusted earnings guidance increased to $5.17-$5.23 per share.
Chief financial officer James Foster projected fourth-quarter adjusted EBITDA of $345-$355 million and adjusted earnings of $1.51-$1.57 per share. Management expects the fourth quarter to deliver its strongest sales and profitability of 2026.
ATI Sees Durable Gains in AA&S ProfitabilityAdvanced Alloys & Solutions delivered record EBITDA margin of 25.8%, expanding 850 basis points year over year. Stronger pricing, favorable contracts and increasing aerospace exposure supported profitability.
Fields emphasized the segment's transformation through the exit from lower-value commodity stainless steel products. Aerospace and defense now represents approximately 45% of segment revenues, compared with 18% in 2021.
Responding to a JPMorgan analyst's question about margin sustainability, Foster emphasized structural improvements in commercial agreements, product mix and productivity. Management expects fourth-quarter AA&S margins to remain in the mid-20% range.
ATI Addresses HPMC Production Ramp CostsHigh Performance Materials & Components (HPMC) recorded 20% year-over-year revenue growth, supported by demand for differentiated jet engine materials.
Fields explained that ramping production of a newly qualified nickel-based superalloy reduced third-quarter segment margin by approximately 200 basis points against plan. ATI completed qualification and began production within nine months.
During questioning from TD Cowen, management clarified that the impact represented approximately $15-$20 million in forgone EBITDA against plan. Foster expects these inefficiencies to diminish substantially in the fourth quarter and disappear by year-end.
ATI Jet Engine Demand Supports Growth OutlookJet engine revenues increased 39% year over year and 19% sequentially. Fields raised the full-year jet engine revenue growth expectation to the low-to-mid-20% range from the previous high-teens outlook.
Management emphasized that next-generation engines contain more than twice ATI's material content compared with legacy engines. Airframe revenues increased 11%, while defense and specialty energy advanced 6% and 49%, respectively.
During questioning from Seaport Research Partners about potential aircraft inventory corrections, Fields maintained that customer orders remained aligned with production schedules. Management reported no deterioration in its order book entering 2027.
ATI Prioritizes Capacity and Capital DisciplineATI's Elevation operating model remains central to improving productivity and unlocking capacity from existing manufacturing assets.
Fields highlighted a raw-material recovery initiative expected to generate several million dollars in annual savings beginning in 2027. Management also reported progress at its Mexico facility and Richland titanium furnace.
Responding to Wells Fargo, Foster emphasized disciplined investment in differentiated capabilities, including premium titanium, nickel superalloys and specialized forging. Customer funding and long-term contractual commitments remain important considerations.
ATI Maintains Focus on Operational ExecutionManagement's overarching message centered on converting sustained customer demand into higher margins, earnings and cash flow.
Fields emphasized continued production improvements, commercial discipline and capacity expansion while maintaining confidence in the company's growth trajectory entering 2027.
What Zacks Rank and Style Scores Indicate for ATIATI currently carries a Zacks Rank #1 (Strong Buy), indicating a favorable earnings estimate revision outlook and stronger near-term performance potential under the Zacks framework. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock holds a Momentum Score of A and Growth Score of B, reflecting favorable characteristics in those categories. Its Value Score of D and VGM Score of C indicate comparatively weaker valuation characteristics and a mixed composite profile.
The combination of a Zacks Rank #1 and a favorable Growth and Momentum Score supports its positioning within those investment styles. However, the Zacks Rank can change as analysts revise earnings estimates following the latest quarterly results.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Toast (TOST - Free Report) .
Toast currently has an average brokerage recommendation (ABR) of 1.70, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 33 brokerage firms. An ABR of 1.70 approximates between Strong Buy and Buy.
Of the 33 recommendations that derive the current ABR, 21 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 63.6% and 3% of all recommendations.
Brokerage Recommendation Trends for TOST
Check price target & stock forecast for Toast here>>>
While the ABR calls for buying Toast, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in TOST?In terms of earnings estimate revisions for Toast, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.41.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Toast. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Toast.
Key Takeaways BKR will supply subsea trees, wellheads, manifolds and services for E's Cronos gas project offshore Cyprus.Baker Hughes' first equipment deliveries for the Cronos project are scheduled for the first half of 2027.The Eni contract strengthens BKR's subsea backlog and supports growth prospects in deepwater markets. Baker Hughes Company (BKR - Free Report) has secured a significant contract from Eni S.p.A. (E - Free Report) to supply subsea production systems and related services for the Cronos deepwater gas development offshore Cyprus. The contract, booked in the third quarter of 2026, strengthens Baker Hughes' project portfolio and highlights its established relationship with Eni.
The latest agreement reinforces BKR's position in the deepwater energy market and creates opportunities to generate revenues through equipment deliveries and associated services.
BKR's Subsea Expertise Supports Eni's Cronos ProjectUnder the agreement, Baker Hughes will deliver subsea trees, wellheads, connectors, manifolds, topside controls and supporting services. The company will deploy standardized, configurable subsea solutions to simplify project execution and support Eni's accelerated development schedule.
BKR's approach aims to reduce operational complexity, improve delivery predictability and help Eni advance the project toward initial gas production. Work is already underway, with the first equipment deliveries scheduled for the first half of 2027.
Contract Strengthens BKR's Revenue VisibilityThe award expands Baker Hughes' subsea project backlog, boosting earnings and supporting activity across its Oilfield Services & Equipment business.
The contract also reinforces BKR's ability to secure complex offshore assignments, strengthening its competitive position in deepwater developments.
Longstanding Partnership With Eni Offers AdvantagesBaker Hughes' established relationship with Eni provides opportunities for continued collaboration on technically demanding offshore projects. Successful execution of Cronos will demonstrate BKR's ability to deliver integrated solutions under accelerated timelines.
What Does the Contract Mean for BKR Investors?For investors, the contract represents a positive development, supporting Baker Hughes' long-term growth prospects and reinforcing demand for its subsea technologies. Timely project execution and equipment deliveries will remain key to translating the award into revenues and earnings.
BKR & E's Zacks Rank & Other Key PicksBaker Hughes currently carries a Zacks Rank #2 (Buy), while Eni sports a Zacks Rank #1 (Strong Buy).
Other top-ranked stocks in the oil and energy sector are EOG Resources, Inc. (EOG - Free Report) and Cenovus Energy Inc. (CVE - Free Report) . CVE currently flaunts a Zacks Rank #1, while EOG carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
EOG Resources maintains a diversified upstream portfolio across major U.S. oil and natural gas producing regions. Its emphasis on high-return drilling opportunities, operational efficiency and disciplined capital spending supports its long-term production and cash flow prospects. The Zacks Consensus Estimate for EOG’s third-quarter 2026 earnings suggests a 64.2% improvement from the prior-year reported figure.
Cenovus is a Canadian integrated energy company with oil sands, conventional oil and natural gas production assets, alongside refining and upgrading operations. The company’s integrated business model helps optimize crude oil processing, manage commodity price exposure and strengthen cash flow generation. The Zacks Consensus Estimate for CVE’s third-quarter 2026 earnings indicates a 132.7% improvement from the prior-year reported figure.
Analysts on Wall Street project that Datadog (DDOG - Free Report) will announce quarterly earnings of $0.64 per share in its forthcoming report, representing an increase of 16.4% year over year. Revenues are projected to reach $1.14 billion, increasing 28.9% from the same quarter last year.
The current level reflects an upward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
That said, let's delve into the average estimates of some Datadog metrics that Wall Street analysts commonly model and monitor.
Analysts' assessment points toward 'Remaining Performance Obligations' reaching $3.55 billion. The estimate compares to the year-ago value of $2.79 billion.
The average prediction of analysts places 'Customers' at 34,228 . Compared to the present estimate, the company reported 32,000 in the same quarter last year.
The collective assessment of analysts points to an estimated 'Customers >$100k in ARR' of 4,825 . Compared to the present estimate, the company reported 4,060 in the same quarter last year.
View all Key Company Metrics for Datadog here>>>
Datadog shares have witnessed a change of -3.8% in the past month, in contrast to the Zacks S&P 500 composite's +0.7% move. With a Zacks Rank #3 (Hold), DDOG is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Le nouveau groupe d'expertise OpenAI Frontier rassemble plus de 25 000 professionnels au sein d'une organisation mondiale de prestation de services OpenAICognizant déploie OpenAI en priorité au sein de ses propres activités commerciales et de réussite client, afin que ses clients puissent bénéficier d'approches éprouvées à l'échelle de l'entreprise., /PRNewswire/ -- Cognizant (Nasdaq : CTSH) a annoncé aujourd'hui la création de son groupe d'expertise OpenAI Frontier, réunissant plus de 25 000 professionnels œuvrant à la fourniture de produits OpenAI, notamment Codex et ChatGPT, à ses clients. Ce groupe a pour objectif d'aider les entreprises à appliquer les modèles d'OpenAI à la manière dont elles développent des logiciels, servent leurs clients et gèrent leurs opérations quotidiennes.
Ce n'est plus l'accès aux modèles de pointe qui freine de nombreuses entreprises ; ce qui leur manque, ce sont des professionnels qualifiés qui savent comment intégrer ces modèles aux systèmes dont dépend leur activité. Cognizant a développé cette capacité à l'échelle de l'entreprise, où plus de 21 000 collaborateurs ont obtenu plus de 40 000 badges OpenAI, chacun étant décerné pour avoir suivi des parcours d'apprentissage sur les technologies OpenAI. Le nouveau groupe intègre une organisation axée sur la conception et le support des systèmes basés sur OpenAI pour ses clients.
Ce travail devrait s'appuyer sur le modèle de main-d'œuvre Frontier de Cognizant, grâce auquel l'entreprise développe des ingénieurs certifiés Frontier et des opérateurs commerciaux Frontier accrédités directement par des entreprises du modèle Frontier.
Cognizant teste souvent les nouvelles approches en interne avant de les proposer à ses clients. Ses équipes commerciales et de réussite client utilisent déjà une solution basée sur des modèles OpenAI pour identifier et exploiter de nouvelles opportunités. Pour les clients, cela signifie que le travail du groupe peut s'appuyer sur des méthodes testées à grande échelle au sein d'une entreprise mondiale.
« Au cours des 50 dernières années, chaque évolution des technologies d'entreprise a transformé les acteurs et les méthodes de conception des systèmes », a déclaré Ravi Kumar S, PDG de Cognizant. « Avec Codex et ChatGPT, OpenAI modifie les deux à la fois. Nous mobilisons plus de 25 000 de nos collaborateurs pour apporter ce changement au sein des entreprises de nos clients. Nous avons commencé par nos propres solutions, et OpenAI commence à remodeler notre façon de vendre. »
« OpenAI aide les entreprises à repenser fondamentalement leur mode de fonctionnement, de leur relation client à leur mode d'organisation du travail », a déclaré Dali Rajic, directeur des revenus chez OpenAI. « En réunissant plus de 25 000 professionnels au sein d'une équipe dédiée à OpenAI et en mettant notre technologie à profit dans ses propres opérations, Cognizant aide davantage d'entreprises à transformer l'IA en un impact commercial significatif. »
Premiers domaines d'intérêt
Le groupe se concentrera initialement sur trois domaines : l'ingénierie logicielle native IA avec Codex, la modernisation des applications et les opérations clients automatisées. Codex constitue le point d'ancrage principal et est conçu pour accompagner les ingénieurs dans la rédaction, les tests et le déploiement de nouveaux codes. Dans le cadre de la modernisation des applications, le groupe utilisera Cognizant Application Modernizer, basé sur les modèles OpenAI, tout au long du cycle de vie, de l'ingénierie inverse du code des anciens grands systèmes à la génération de code conçu pour le cloud. Chaque décision importante est examinée par des ingénieurs, s'appuyant sur l'expérience de Cognizant en matière de modernisation des systèmes mainframe pour plus de 500 clients. Dans les activités clients, le groupe appliquera les modèles OpenAI aux ventes, au service et au support, en tirant parti de l'expérience acquise par Cognizant dans la conduite de ses propres activités.
Cognizant produit déjà des résultats pour ses clients : au sein d'une entreprise biopharmaceutique mondiale, Cognizant a co-conçu un assistant d'entreprise basé sur OpenAI qui centralise la recherche, la création de contenu, la traduction et les approbations. Ce dernier a géré plus de 5 millions de conversations et réduit le temps de création de contenu de 60 %.
Cognizant fait partie d'un groupe restreint de partenaires avancés du réseau de partenaires OpenAI. Ses hackathons Codex en Inde et dans les Amériques ont rassemblé plus de 12 000 participants.
À propos de Cognizant
Cognizant (Nasdaq : CTSH) est un développeur en IA et un fournisseur de services technologiques qui établit une passerelle entre l'investissement en IA et la valeur d'entreprise en mettant au point des solutions d'IA complètes pour nos clients. Notre expertise approfondie de l'industrie, des procédés et de l'ingénierie nous permet d'intégrer le contexte unique d'une entreprise à des systèmes technologiques qui amplifient le potentiel humain, produisent des résultats concrets et permettent aux entreprises internationales de conserver un temps d'avance dans un monde en mutation rapide. Pour plus d'informations, rendez-vous sur www.cognizant.ai et suivez @cognizant.
Exelon (EXC - Free Report) came out with quarterly earnings of $0.87 per share, beating the Zacks Consensus Estimate of $0.8 per share. This compares to earnings of $0.86 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +8.75%. A quarter ago, it was expected that this energy company would post earnings of $0.43 per share when it actually produced earnings of $0.43, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Exelon, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $7.32 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 6.60%. This compares to year-ago revenues of $6.71 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Exelon shares have added about 5.3% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for Exelon?While Exelon has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Exelon was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.73 on $5.93 billion in revenues for the coming quarter and $2.86 on $25.88 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Fortis (FTS - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on November 3.
This electric and gas utility is expected to post quarterly earnings of $0.63 per share in its upcoming report, which represents a year-over-year change of +6.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Fortis' revenues are expected to be $2.17 billion, up 1.8% from the year-ago quarter.
For the quarter ended September 2026, Exelon (EXC - Free Report) reported revenue of $7.32 billion, up 9.2% over the same period last year. EPS came in at $0.87, compared to $0.86 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $6.87 billion, representing a surprise of +6.6%. The company delivered an EPS surprise of +8.75%, with the consensus EPS estimate being $0.80.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Exelon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating revenues- ComEd: $2.47 billion versus the two-analyst average estimate of $2.38 billion. The reported number represents a year-over-year change of +8.6%.Operating revenues- PHI: $2.26 billion versus the two-analyst average estimate of $2.07 billion. The reported number represents a year-over-year change of +10.2%.Operating revenues- BGE: $1.36 billion versus $1.23 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +12.7% change.Operating revenues- PECO: $1.24 billion versus the two-analyst average estimate of $1.14 billion. The reported number represents a year-over-year change of +5.1%.Adjusted (non-GAAP) operating earnings- ComEd: $412 million compared to the $413.79 million average estimate based on two analysts.Adjusted (non-GAAP) operating earnings- PHI: $320 million versus $296.28 million estimated by two analysts on average.Adjusted (non-GAAP) operating earnings- BGE: $119 million compared to the $71.46 million average estimate based on two analysts.Adjusted (non-GAAP) operating earnings- PECO: $167 million versus $183.2 million estimated by two analysts on average.View all Key Company Metrics for Exelon here>>>
Shares of Exelon have returned +13.4% over the past month versus the Zacks S&P 500 composite's +0.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
NEWPORT NEWS, Va., Oct. 30, 2026 (GLOBE NEWSWIRE) -- HII (NYSE: HII) announced today the appointment of Renee Swan to executive vice president and chief human resources officer (CHRO), effective Dec. 7, 2026. Swan comes to HII from Nashville-based Atmus Filtration Technologies (NYSE: ATMU), where she served as senior vice president and chief people officer.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service, which provides daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter, makes these more manageable goals. All of the features can help you identify what stocks to buy, what to sell, and what are today's hottest industries.
Also included in Zacks Premium is the Focus List. This is a long-term portfolio of top stocks that have all the traits to beat the market.
Breaking Down the Zacks Focus ListBuilding an investment portfolio from scratch can be difficult, so if you could, wouldn't you take a peek at a curated list of top stocks?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
What makes the Focus List even more helpful is that each selection is accompanied by a full Zacks Analyst Report, which explains the reasoning behind every stock's selection and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Investors also need to look at what a company will earn down the road. This is why earnings estimate revisions are so important.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank is a unique, proprietary stock-rating model that utilizes changes to a company's quarterly earnings expectations to help investors build a winning portfolio.
The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Smucker (SJM - Free Report) The J. M. Smucker Company, headquartered in Orrville, Ohio, is a leading manufacturer and marketer of branded food, beverage, pet food and pet snack products in North America. Its operations are primarily concentrated in the United States, with additional international activities, mainly in Canada.
Since being added to the Focus List on August 29, 2024 at $114.73 per share, shares of SJM have increased 10.05% to $126.26. The stock is currently a #2 (Buy) on the Zacks Rank.
One analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.09 to $10.71. SJM boasts an average earnings surprise of 13.8%.
Additionally, SJM's earnings are expected to grow 17.1% for the current fiscal year.
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The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.82% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Labcorp Holdings (LH - Free Report) Headquartered in Burlington, NC, Labcorp Holdings, Inc. (Labcorp) is a leading healthcare diagnostics company, providing comprehensive clinical laboratory services and end-to-end drug development support. In 2015, Labcorp acquired New Jersey-based Covance, a drug development services company providing a wide range of early stage and late-stage product development services on a worldwide basis primarily to the pharmaceutical and biotechnology industries.
LH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 20.01; value investors should take notice.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.12 to $18.40 per share. LH boasts an average earnings surprise of +3.5%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, LH should be on investors' short list.
SummaryHighwoods Properties gets upgraded to a buy, challenging the consensus that is largely neutral.Key strengths come from the balance sheet, portfolio growth, and Sunbelt diversity.The dividend story is a strong one, while upside forecasts are also positive and two major agencies consider this REIT investment-grade.Sector risks have improved since the global pandemic, but the nature of office work today and remote professionals have changed the equation. Getty Images
A Slight Q3 FFO Miss, But the Quality Story Continues to Be There As Q3 reporting season continues to steam ahead, this time I picked an unlikely category... office REITs! I know there were storm clouds over this sector for
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Author actively invests in a peer of this stock, Cousins Properties, who was mentioned in the article as a peer.
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First FDA-approved biologic specifically designed to cross blood-brain barrier wins award dedicated to exceptional scientific leadership and transformational impact on patient careFirst new FDA-approved treatment option in nearly 20 years for families living with Hunter syndrome, a rare neurodegenerative disorderDenali’s brain delivery technology establishes foundation for potential therapies across wide range of diseases that impact the brain, including Alzheimer’s disease SOUTH SAN FRANCISCO, Calif., Oct. 30, 2026 (GLOBE NEWSWIRE) -- Denali Therapeutics Inc. (Nasdaq: DNLI) today announced that AVLAYAH® (tividenofusp alfa-eknm) has been recognized as the “Best Biotechnology Product” of 2026 by The Galien Foundation. AVLAYAH is the first biologic approved by the U.S. Food and Drug Administration (FDA) that is specifically designed to cross the blood-brain barrier and reach the whole body, including the brain. AVLAYAH is an enzyme replacement therapy that received FDA accelerated approval in March 2026 for the treatment of neurologic manifestations of a rare neurodegenerative disease called Hunter syndrome (mucopolysaccharidosis type II, or MPS II) when initiated in presymptomatic or symptomatic pediatric patients weighing at least 5 kg prior to advanced neurologic impairment. Continued approval for this indication may be contingent upon verification of clinical benefit in a confirmatory study.
The Galien Foundation, which fosters and recognizes excellence in scientific innovation that improves the state of human health, presented the 2026 Prix Galien USA “Best Biotechnology Product” award to Denali Therapeutics during a ceremony last night at the American Museum of Natural History in New York City. Prix Galien USA Awards are among the highest honors in the global biopharmaceutical industry, acknowledging the most impactful treatments approved by the FDA within the last five years. Prix Galien winners are selected by committees of the top leaders in science and medicine.
“We are honored to receive the Best Biotechnology Product Award for AVLAYAH, which is a culmination of years of pioneering research to solve the challenge of delivering biologics across the blood-brain barrier with our TransportVehicle technology,” said Ryan Watts, Ph.D., co-founder and Chief Executive Officer of Denali Therapeutics. “This recognition also belongs to the Hunter syndrome community and the families, advocates and clinicians whose determination and commitment made AVLAYAH possible. An FDA-approved medicine that reaches the brain offers transformative possibilities for this community, and it is proof that we can bring the power of biologic medicines to the brain for rare genetic diseases and common neurodegenerative disorders that affect millions of people worldwide.”
Denali’s proprietary TransportVehicle™ technology binds to the transferrin receptor (TfR) and is designed to deliver enzymes, antibodies and oligonucleotides to the whole body, including the brain, through receptor-mediated transcytosis. AVLAYAH is the first and only FDA-approved TfR-enabled medicine engineered to specifically cross the blood-brain barrier.
Denali Therapeutics is advancing a growing portfolio of TransportVehicle-enabled therapeutic candidates across all stages of development, including zafinofusp alfa, an investigational enzyme replacement therapy for the treatment of mucopolysaccharidosis type IIIA (Sanfilippo syndrome type A), and two investigational medicines for Alzheimer’s disease (AD) that target the two defining pathologies of the disease. DNL628 (OTV:MAPT) is an Oligonucleotide TransportVehicle-enabled antisense oligonucleotide designed for systemic delivery across the blood-brain barrier to reduce tau by targeting the MAPT gene for the treatment of AD. DNL921 (ATV:Abeta) is an Antibody TransportVehicle-enabled antibody designed for systemic delivery across the blood-brain barrier to target amyloid plaques in AD.
About Hunter Syndrome (MPS II)
Hunter syndrome, also known as MPS II, is a rare genetic lysosomal storage disorder that primarily affects boys and impacts approximately 500 individuals in the United States and 2,000 individuals worldwide. The disease is caused by mutations in the iduronate 2-sulfatase (IDS) gene that results in a deficiency of the IDS enzyme, which is responsible for breaking down glycosaminoglycans (GAGs) such as heparan sulfate and dermatan sulfate. The accumulation of GAGs leads to progressive damage in multiple organs and tissues, including the brain. Symptoms of Hunter syndrome include developmental delays, cognitive decline, behavioral abnormalities and physical complications such as joint stiffness, hearing loss and organ dysfunction.
About AVLAYAH® (tividenofusp alfa-eknm)
AVLAYAH (tividenofusp alfa-eknm) is an intravenous enzyme replacement therapy composed of the iduronate 2-sulfatase (IDS) enzyme fused to Denali’s proprietary TransportVehicle™ (TV) platform. The Fc component of AVLAYAH binds to the apical domain of the transferrin receptor (TfR) and delivers IDS to peripheral tissues and to the central nervous system through receptor-mediated transcytosis across the blood-brain barrier. AVLAYAH is internalized via binding to the mannose-6-phosphate receptor on the cell surface and transported into lysosomes where it is thought to exert enzymatic activity and reduce accumulated glycosaminoglycans (GAGs). In addition, since TfR is ubiquitously expressed, it is expected that the interaction of AVLAYAH and TfR will contribute to its uptake into cells in the brain and peripheral tissues. In addition to Rare Pediatric Disease Designation and Breakthrough Therapy Designation, the U.S. Food and Drug Administration granted Fast Track and Orphan Drug designations to AVLAYAH for the treatment of MPS II.
The European Medicines Agency has granted Priority Medicines designation to tividenofusp alfa. AVLAYAH is not approved by health authorities outside of the U.S.
AVLAYAH U.S. Indication
AVLAYAH is approved for the treatment of neurologic symptoms in pediatric patients weighing at least 5 kg with Hunter syndrome prior to advanced neurologic disease. This approval is based on a reduction of heparan sulfate (HS) in the cerebrospinal fluid (CSF) surrounding the brain and spinal cord. Studies are ongoing to confirm how well it works in improving clinical symptoms.
Limitations of Use
AVLAYAH is not recommended for use in combination with other enzyme replacement therapies.
Important Safety Information
AVLAYAH may cause serious side effects, including:
Hypersensitivity Reactions including Anaphylaxis. Life-threatening allergic reactions occurred both early in treatment and after many doses over time, including:
Fast heartbeatDizziness or faintingWheezingVomitingHivesSwelling of the lips and tongue Notify your healthcare provider immediately if these symptoms occur. If a serious allergic reaction happens, your treatment will be stopped and emergency treatment will be given, including use of epinephrine.
Infusion-Associated Reactions (IARs). IARs occurred during or within 24 hours after receiving AVLAYAH, including:
ChillsSwellingLow blood pressure (dizziness or fainting)Fast heartbeatHivesWheezingFeverFlushing or reddening of the skinRashCoughDiarrheaAbdominal painVomitingHeadacheIrritabilitySmall bumps on the skin If you have an IAR, your doctor may slow down, pause, adjust your dose, or stop the infusion depending on how serious the reaction is. You may also be given medicine before infusions to help prevent these reactions. Patients with heart or lung problems may be at higher risk of serious complications from these reactions and will be monitored closely.
Anemia (Low Red Blood Cell Count) occurred during AVLAYAH treatment and may require periodic laboratory tests for hemoglobin. Contact your healthcare provider if you experience any symptoms (e.g., fatigue, pale skin) suggestive of anemia.
Membranous Nephropathy (Kidney disorder that affects the filters that help remove wastes and fluids from the kidney) occurred in an AVLAYAH-treated patient. Your doctor will monitor your kidney function during treatment.
The most common side effects (in 20% or more of patients):
Infusion-associated reactionsUpper respiratory infectionsEar infectionFeverAnemia (low red blood cell count)CoughVomitingDiarrheaRashCOVID-19Runny or congested noseFallsHeadacheSkin injuriesHives Contact your healthcare provider right away if you experience any side effects. These are not all the possible side effects of AVLAYAH. You may report side effects to FDA at www.fda.gov/medwatch or call 1-800-FDA-1088. You may also report side effects to Denali Therapeutics at 1-833-ONE-DNLI (1-833-663-3654).
Please see the full Prescribing Information, including Boxed Warning, here for additional Important Safety Information.
About the Denali TransportVehicle™ Platform
The blood-brain barrier (BBB) is essential in maintaining the brain’s microenvironment and protecting it from harmful substances and pathogens circulating in the bloodstream. Historically, the BBB has posed significant challenges to drug development for central nervous system diseases by preventing most drugs from reaching the brain in therapeutically relevant concentrations. Denali’s TransportVehicle™ (TV) platform is a proprietary technology designed to effectively deliver large therapeutic molecules such as antibodies, enzymes and oligonucleotides throughout the whole body, including the brain, by crossing the BBB after intravenous administration. The TV platform is based on engineered Fc domains that bind to specific natural transport receptors, such as transferrin receptor and CD98 heavy chain amino acid transporter, which are expressed at the BBB and deliver the TV and its therapeutic cargo to the brain through receptor-mediated transcytosis. In animal models, antibodies and enzymes engineered with the TV platform demonstrate more than 10- to 30-fold greater brain exposure than similar antibodies and enzymes without this technology. Oligonucleotides engineered with the TV platform demonstrate more than a 1,000-fold greater brain exposure in primates than systemically delivered oligonucleotides without this technology. Improved exposure and broad distribution in the brain may increase therapeutic efficacy by enabling widespread achievement of therapeutically relevant concentrations of product candidates. The TV platform has been clinically validated, with AVLAYAH® (tividenofusp alfa-eknm) as the first FDA-approved medicine leveraging transferrin receptor to cross the BBB.
About Denali Therapeutics
Denali Therapeutics Inc. is a biotechnology company pioneering a new class of biotherapeutics designed to cross the blood-brain barrier (BBB) using its proprietary TransportVehicle™ platform. With the first FDA-approved biologic specifically designed to cross the BBB, a clinically validated delivery platform and a growing portfolio of therapeutic candidates across all stages of development, Denali is advancing toward its goal of delivering effective medicines to transform life for people with neurodegenerative diseases, lysosomal storage disorders and other serious diseases. For more information, please visit www.denalitherapeutics.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements regarding expectations for Denali’s TransportVehicle™ (TV) platform, including its therapeutic and commercial potential and its potential to enable therapies across a wide range of diseases that impact the brain; AVLAYAH® (tividenofusp alfa-eknm), including its therapeutic potential and the likelihood that confirmatory studies will verify clinical benefit and support continued approval; plans, timelines and expectations related to zafinofusp alfa, DNL628, DNL921 and Denali’s other TV-enabled product candidates; and statements by Denali's Chief Executive Officer. Actual results may differ materially from those expressed or implied by these forward-looking statements due to a variety of risks and uncertainties. These include, but are not limited to, risks arising from adverse economic conditions and their impact on Denali’s business and operations; Denali’s ability to complete the development and, if approved, the commercialization of product candidates; reliance on third-party manufacturers and suppliers for clinical trial and commercial materials; difficulties enrolling patients for ongoing and future clinical trials; potential delays or failures in meeting expected clinical trial timelines; discrepancies between preclinical, early-stage or preliminary clinical results and later-stage trial outcomes; the risk that interim or topline clinical results may not be predictive of final study results or longer-term outcomes; the risk that the FDA may not accept the data or surrogate endpoints Denali intends to use to support accelerated approval, may require additional or different studies, or may withdraw an accelerated approval if confirmatory studies do not verify clinical benefit; significant adverse events or other undesirable side effects; the uncertainty surrounding regulatory approvals required for commercialization in the U.S., Europe or other international jurisdictions, including uncertainties related to the FDA’s policies; developments relating to Denali's competitors and competing product candidates; Denali’s ability to obtain, maintain or protect intellectual property rights related to its product candidates; the implementation and success of Denali’s strategic plans for its business, product candidates and blood-brain barrier platform technology; Denali's ability to obtain additional capital to finance its operations, as needed; Denali's ability to accurately forecast future revenues and operating expenses in the current environment; quarterly variability in net product revenue and the risk that revenue growth may not continue at recent rates; and other risks and uncertainties, including those described in Denali's Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on February 26, 2026, its Quarterly Report on Form 10-Q filed with the SEC on August 6, 2026, and Denali’s future SEC filings. Except for AVLAYAH, Denali's product candidates are investigational, and their safety and efficacy profiles have not yet been established. Denali undertakes no obligation to update or revise any forward-looking statements, to conform these statements to actual results or reflect changes in Denali’s expectations, except as required by law.
DoorDash just revealed exactly how many dinner orders AI agents have placed through its platform, and the number exposes a striking gap between Wall Street's fears and what customers are actually doing.
In a statement on October 29, 2026, DoorDash (NASDAQ:DASH | DASH Price Prediction) chief executive quantified the AI threat that has weighed on the stock, and it was small. He said third-party AI agents have generated “several hundred orders” since they went live. DoorDash handled 993 million orders in the third quarter alone.
The fear is that if an AI assistant orders dinner for you, DoorDash loses the customer relationship, the ad impressions and the chance to sell you a DashPass subscription. The call shows customers still order through the app, and DoorDash wants to be the delivery network that any agent has to use.
Shares closed at $179.00, up 5.61% or $9.51, for a market value of about $73.2 billion. They reached $181.26 after hours, up 1.26%. The stock was still down 20.96% year to date and 32.72% over one year.
What Tony Xu Said About AI Agents
Rothschild & Co Redburn analyst Dominic Ball asked how the business changes as consumers shop through AI agents. Tony Xu, speaking as co-founder and CEO, answered: “right now, AI agents are generating several hundred orders across the time that they’ve been up and running. So it’s been a fairly low use case.”
Earlier in the call, he told Cantor Fitzgerald’s Deepak Mathivanan, “The predominant use case of that is actually through our app.” In August, he described agentic partner volume as “quite low so far,” so the pattern has now held for two quarters.
The low count applies only to third-party agents. DoorDash shipped its own agents, Ask DoorDash and Text DoorDash, along with a Model Context Protocol (MCP) interface, which is a standard connection that lets outside AI agents place orders through DoorDash.
A Quarter Strong Enough to Shift the Debate
Revenue rose 34% to $4.6 billion. Marketplace gross order value (GOV), the total dollar value of orders placed, climbed 36% to $33.9 billion. Total orders grew 28%, but Deliveroo inflates that figure, and growth without it was 17%.
Profit grew faster than revenue. Net income attributable to common stockholders rose 91% to $466 million, or $1.06 per diluted share, and adjusted EBITDA increased 41% to $1.06 billion.
Fourth-quarter guidance calls for GOV of $35.4 billion to $36.4 billion and adjusted EBITDA of $900 million to $1.1 billion. The range is wide, which leaves room for changes in investment spending.
Why the Agent Risk Still Matters
Agent use is early, so low usage now tells you little about usage in a few years. By building MCP, DoorDash chose to supply agents instead of blocking them. That choice brings more order flow but gives the company less control over the customer.
DoorDash describes its defense as “winning the battle for atoms,” meaning its drivers, merchant density, routing and delivery speed. Software cannot easily copy that network, although it may do less to protect pricing once agents compare delivery apps on price for you.
Xu also said “there will be advertising opportunities even within some of these AI agents,” and added, “my take on all things technology is you never want to fight gravity.” DoorDash has not put a number on that advertising revenue.
What the Results Mean for DASH Stock Now
The results argue against the AI fear. Shares are priced for AI disruption that hasn’t shown up in the results, while the core business grew orders 17% without Deliveroo and profit outpaced revenue.
The larger risk is Instacart (NASDAQ:CART), a deal that ties up capital for years. DoorDash agreed to pay $65.00 per share, about $17 billion in equity value, at least 75% in cash, a 26% premium to Instacart’s October 22 close. Justifying that needs a multi-year push to $500 million or more in annual synergies, with closing expected by the end of 2027 or the first half of 2028.
This view can be tested against two signals. If fourth-quarter adjusted EBITDA lands within guidance and third-party agent orders remain minor, the market’s concern about agents may ease. A close below $167.40, the price when results were filed, would show the market still doubts the story.
Contact [email protected] for any questions or corrections.
There’s a big uproar about AI agents taking over commerce and orders, but that might not be the case just yet. Delivery company DoorDash revealed during its third-quarter earnings call that it has only seen “several hundred” orders from third-party agents like Muse, Instinct, Fo, and others. For comparison, the company said in its 2025 report it completes an average of 3 million deliveries daily.
“I would say that this [using agents to order] is something that is still a very dynamic area. And my take on all things technology is you never want to fight gravity. But at the same time, you don’t want to be delusional,” DoorDash CEO Tony Xu said in an answer to an analyst’s questions about the topic. “What I mean by that is if you look at where AI agents are today, we’re seeing maybe several hundred orders in total from some of these third-party agents,” he said.
Xu mentioned that users are still predominantly placing orders through DoorDash’s app. However, the company wants to learn more about agentic use cases and develop a healthy relationship with third-party agent makers. He added that, in the future, there could be an opportunity for it to advertise within these agents.
DoorDash has its own agents, including a text-to-order agent it launched in September, a CLI agent introduced in July, and a chatbot called Ask DoorDash it launched it June, which allows users to place orders through prompts and photos. The company also released an MCP to enable ordering from other chatbots for corporate ordering.
The space of agent-based ordering is evolving, as websites are still deciding whether to allow them to access their content or not. Amazon has been blocking such personal agents, but Walmart has laid out a red carpet for them in order to snag some business from its competitors.
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Ivan covers global consumer tech developments at TechCrunch. He is based out of India and has previously worked at publications including Huffington Post and The Next Web.
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Sensient Technologies (SXT - Free Report) came out with quarterly earnings of $1.13 per share, beating the Zacks Consensus Estimate of $1.03 per share. This compares to earnings of $0.96 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +9.71%. A quarter ago, it was expected that this maker of colors, flavors and fragrances would post earnings of $1 per share when it actually produced earnings of $1.2, delivering a surprise of +20%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Sensient, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $455.84 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.83%. This compares to year-ago revenues of $412.11 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Sensient shares have added about 40% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for Sensient?While Sensient has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Sensient was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.93 on $449 million in revenues for the coming quarter and $4.20 on $1.8 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Ashland (ASH - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on November 3.
This chemical company is expected to post quarterly earnings of $1.30 per share in its upcoming report, which represents a year-over-year change of +20.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Ashland's revenues are expected to be $500.66 million, up 4.7% from the year-ago quarter.
Gold (XAU/USD) registered gains for the first three days of this week only to erase them in the second half and to drop to a fresh 2026-low below $3,900. Next week’s economic calendar will offer key macroeconomic data releases from the United States (US), which could trigger the next directional action in the precious metal.
Gold buyers fail to retain control despite falling US yieldsGold managed to close in positive territory on Monday and Tuesday as falling crude Oil prices helped markets adopt an optimistic stance about the inflation outlook. Still, investors refrained from taking large positions ahead of the Federal Reserve’s (Fed) policy announcements, causing the yellow metal’s upside potential to remain limited.
On Wednesday, the Fed announced that it kept its Fed Funds Target Range (FFTR) unchanged at 3.75%-4.00%, with two policymakers voting in favor of a 25 basis points (bps) rate hike. In the post-meeting press conference, Fed Chair Kevin Warsh refrained from confirming a rate increase in December but reiterated their commitment to delivering price stability. With the immediate reaction, the US Dollar (USD) weakened slightly and allowed XAU/USD to post small gains midweek.
On Thursday, the US Bureau of Economic Analysis’ (BEA) first estimate showed that US Gross Domestic Product (GDP) expanded at an annual rate of 3.4% in the third quarter. This print followed 2.2% growth recorded in the second quarter and came in better than analysts’ estimate of 3.2%. The BEA also reported that the Personal Consumption Expenditures (PCE) Price Index rose by 3.6% in September, compared to 3.4% in August. Additionally, the core PCE Price Index, the Fed’s preferred gauge of inflation, increased to 3.1% in this period, as anticipated.
Even though these data releases failed to influence the odds of a December rate increase in a meaningful way, the benchmark 10-year US Treasury bond yield lost more than 1% on the day and declined below 5%. However, Gold, which usually shows an inverse correlation with US yields, failed to attract buyers.
Strategists at OCBC note “Gold’s inability to benefit from lower yields suggests that fresh buying interest remains limited, even as earlier liquidation pressures may be easing.” They explain that “renewed weakness in technology equities also weighed on sentiment as it raises concerns over another bout of broader deleveraging.” Against this backdrop, the Singaporean bank says, “we remain cautious near term, with further consolidation or another test of recent lows not ruled out.”
In fact, Google’s parent company Alphabet’s shares plunged nearly 13% on Thursday and touched its weakest level since April, dragging the NASDAQ Composite lower. In its earnings report, the company noted that artificial intelligence summaries on search were hurting the ad revenue, as per BBC, and further reported negative free cash flow of about $9 billion.
After losing more than 1% on Thursday and erasing a large portion of its weekly gains, Gold extended its slide on Friday. With the $4,000 psychological level failing and the selloff in US tech stocks picking up steam, the precious metal came under renewed pressure and touched its weakest level since October 2025 below $3,900.
FXStreet Economic CalendarGold investors await US data, midterm electionsThe US economic calendar will feature the Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers Index (PMI) data on Monday. Unless the headline unexpectedly arrives in contraction territory below 50, the market reaction is likely to remain subdued ahead of the midterm elections, which will be held on Tuesday.
Commerzbank’s Nguyen argues that the US is “heading towards what is known as a ‘divided government’,” with the midterm outcome likely to leave the administration facing a more assertive Democratic Congress. The bank notes that the Democrats would probably “at least try to constrain the administration’s room for manoeuvre on issues of particular importance to the public, such as the current Iran conflict, which has pushed up the cost of living significantly,” even though executive authority in wartime limits how far those efforts can go.
It’s difficult to draw a direct relationship between the midterm election result and Gold’s valuation in the near term. However, a divided government could lead to limited war funding and potentially pave the way for a de-escalation of the crisis in the Middle East. Considering how rising Oil prices and their impact on inflation expectations have been weighing on Gold since the beginning of the conflict, a divided government could help XAU/USD gain traction. Such an outcome could also cause President Donald Trump to try to use his executive orders and emergency powers to push his agenda. In this scenario, heightened uncertainty could help Gold attract investors as a traditional safe-haven asset.
If Republicans manage to retain control of the House and the Senate, which seems to be the least likely outcome according to prediction markets, Gold could edge lower with a knee-jerk reaction.
Source: Polymarket.comOn Friday, the US Bureau of Labor Statistics will publish the October employment report. A significant negative surprise, with a reading below 20K in Nonfarm Payrolls (NFP) could cause markets to refrain from confirming a Fed rate hike in December. In this scenario, the immediate reaction could hurt the USD and boost XAU/USD heading into the weekend.
On the other hand, even a modest increase of 40K in NFP could be seen as “good enough” for Fed policymakers to keep their attention on achieving price stability without worrying too much about the labor market. Finally, a positive surprise could reaffirm one more increase in interest rates before the end of the year and weigh on XAU/USD in the near term. According to the CME FedWatch Tool, markets are currently pricing in about a 75% chance of a 25 bps rate hike in December, suggesting there is room for additional USD strength until markets fully price in this move.
Gold technical analysis: Bearish pressure builds upThe Relative Strength Index (RSI) indicator on the daily chart stays slightly above 30, suggesting the bearish bias remains intact without oversold conditions. Additionally, Gold remains within a descending channel and sits well below the 20-day Simple Moving Average (SMA), reaffirming sellers’ dominance.
On the downside, $3,900 (static level) aligns as the immediate support level. If Gold stays below this level and fails to reclaim it, technical sellers could show interest and open the door for an extended slide toward $3,800 (static level, round level) and $3,720 (static level).
In case Gold manages to stabilize above $3,960-$4,000 (previous support area), the 20-day Simple Moving Average (SMA), currently located at $4,100, could act as a dynamic resistance level ahead of the 100-day SMA at $4,220, ahead of $4,300 (Fibonacci 23.6% retracement of the March-August downtrend).
Gold daily chart
Gold FAQs
Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.
Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.
Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.
The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.
, /PRNewswire/ -- Freedom Financial Holdings (OTCQX: FDVA), (the "Company" or "Freedom"), the holding company for The Freedom Bank of Virginia (the "Bank") today announced net income of $1,194,648 or $0.17 per diluted share for the third quarter of 2026 compared to net income of $289,621 or $0.04 per diluted share for the three months ended June 30, 2026, and net income of $1,122,930 or $0.16 per diluted share for the three months ended September 30, 2025. Net income for the nine months ended September 30, 2026, was $2,644,609 or $0.37 per diluted share, compared to $3,942,172 or $0.55 per diluted share for the nine months ended September 30, 2025. The Company also announced that its Board of Directors approved and adopted the Amended and Restated Bylaws of the Company, effective as of such date (the "Amended Bylaws"). The Board of Directors of the Company also announced a further authorization to repurchase up to 150,000 shares as it had fulfilled its previous 250,000 share authorized repurchase program.
Joseph J. Thomas, President, and CEO, commented, "We experienced significant improvement in earnings, loan and deposit growth, and credit quality this quarter which we expect to continue into 2027. The company's net income for the third quarter increased 312% over the second quarter of 2026 and 6.39% compared to the prior year quarter. Our team worked hard to increase loans held-for-investment by 3.05% and deposits by 2.94% in the third quarter. We resolved our only OREO asset with a slight recovery to its prior balance sheet valuation and continue to reduce our level of non-performing assets and collect on SBA guaranteed loans. We also worked hard to reduce expenses to help offset the lower level of mortgage activity due to the meaningful rise in interest rates during the quarter. Our levels of liquidity and capital continue to provide resiliency at a time of market rate volatility, and this strength has allowed the company to be active in our share buyback program reflecting our confidence in the future performance and value of the stock and authorized additional shares for repurchase. In addition, the Board approved the modernization of the Company's Bylaws to reflect current market practice and provide more clarity to shareholders."
Third Quarter 2026 Highlights include:
The Company posted net income of $1,194,648 or $0.17 per diluted share for the third quarter compared to net income of $289,621 or $0.04 per diluted share for the three months ended June 30, 2026, and net income of $1,122,930 or $0.16 per diluted share for the three months ended September 30, 2025.
Tangible Book Value per share1 decreased during the quarter to $11.80 on September 30, 2026, compared to $12.20 on June 30, 2026, due to rising rates and the subsequent change in unrealized loss in Adjusted Other Comprehensive Income ("AOCI").Return on Average Assets ("ROAA") was 0.45% for the quarter ended September 30, 2026, compared to ROAA of 0.11% for the quarter ended June 30, 2026, and 0.41% for the three months ended September 30, 2025.Return on Average Equity ("ROAE") was 5.59% for the quarter ended September 30, 2026, compared to ROAE of 1.38% for the three months ended June 30, 2026, and 5.57% for the three months ended September 30, 2025.Total Assets were $1.06 billion on September 30, 2026, an increase of $20.2 million or 1.94% from total assets on June 30, 2026 as the Bank grew interest bearing deposits and loan and cash balances.Loans held-for-investment (excluding PPP loans) increased by $23.3 million or 3.05% during the quarter.Total deposits increased by $25.8 million or by 2.94% during the quarter. Non-interest-bearing demand deposits decreased by $5.6 million from the linked quarter to $136.48 million and represented 15.15% of total deposits on September 30, 2026.The net interest margin1 was down by 5 basis points in the third quarter at 2.78% from 2.83% in the linked quarter and increased by 12 basis points compared to the same period in 2025.The cost of funds was 2.85% for the second and third quarter, and lower by 34 basis points compared to the same period in 2025, as wholesale funding use was reduced and the market short term rate environment came down from the prior year.Non-interest income decreased by 36.0% compared to the linked quarter and decreased by 25.5% compared to the same period in 2025. The decrease in non-interest income in the third quarter of 2026 compared to the linked quarter was due to lower mortgage gain on sale revenue as mortgage volume has retreated as rates have increased. Non-interest expense in the third quarter decreased by 16.88% compared to the linked quarter and increased by 1.74% compared to the same period in 2025. The decrease in non-interest expense compared to the linked quarter was due to OREO losses recognized in Q2 and partially recovered in Q3 when the property was sold. The increase from the prior year calendar quarter was primarily due to occupancy expense related to the Bank's new Tysons Corner location.The Efficiency Ratio2 was 79.39% for the quarter ended September 30, 2026, compared to 89.67% for the linked quarter and 77.43% for the same period in 2025.Uninsured deposits were 27.85% of total deposits and total liquidity3 was 105.76% of uninsured deposits on September 30, 2026.Net charge offs increased in the third quarter and were 0.03% of average loans compared to 0.02% in the prior quarter. The ratio of non-accrual loans to loans held-for-investment was 3.26% on September 30, 2026, compared to 3.32% on June 30, 2026, and 2.30% on September 30, 2025. The ratio of non-performing assets to total assets was 2.42% on September 30, 2026, compared to 2.57% on June 30, 2026, and 1.65% on September 30, 2025.The Company had a loan loss provision of $188,011 in the third quarter, primarily due to the charge-offs of consumer loans. The ratio of the allowance for credit losses to loans held-for-investment was 1.01% compared to 1.06% in the linked quarter.The Company continues to be well capitalized and capital ratios continue to be strong with a Leverage ratio of 10.81 %, Common Equity Tier 1 ratio of 13.23%, Tier 1 Risk Based Capital ratio of 13.23% and a Total Capital ratio of 14.17%.Net Interest Income
The Company recorded net interest income of $7.049 million for the third quarter, higher by 1.00% compared to the linked quarter, and higher by 4.45% compared to the same period in 2025. The net interest margin in the third quarter of 2026 was 2.78%, down 5 basis points compared to the linked quarter and increased by 12 basis points compared to the same period in 2025.
The following factors contributed to the changes in net interest margin during the third quarter of 2026 compared to the linked and calendar quarters.
Yields on average earning assets were 5.52% in the third quarter of 2026, lower by 5 basis points compared to the linked quarter, and lower by 34 basis points compared to the calendar quarter. The decline in yields on average earning assets in the third quarter was primarily due to lower average loan balances in our held for sale mortgage portfolio which was partially offset by held for investment loan growth late in the quarter. The reduction from the prior calendar quarter stems primarily from the reduction in market rates in the economic environment that lowered yields on cash and short term securities.Loan yields increased by 1 basis point to 6.02% from 6.01% in the linked quarter, while yields on investment securities decreased by 3 basis points from 4.01% to 3.98% in the linked quarter. Loan yields decreased by 37 basis points, while yields on investment securities decreased by 43 basis points compared to the calendar quarter.Cost of funds remained flat at 2.85% in both the second and third quarter, and was lower by 34 basis points compared to the calendar quarter. Non-interest Income
Non-interest income was $1.061 million for the third quarter, a decrease of 36.0% when compared to the linked quarter and a decrease of 25.48% when compared to the same period in 2025. The decrease in non-interest income in the third quarter of 2026 compared to the linked quarter was primarily due to the decrease in mortgage gain on sale income as mortgage origination slowed due to higher rates in the market.
Total Revenue4
Total revenue, defined as the sum of net interest income, before provision for loan losses, and non-interest income, was lower by 6.1% compared to the linked quarter and by 0.77% compared to the calendar quarter in 2025. The decrease in total revenue compared to the linked quarter was due to lower mortgage gain on sale and fee revenue stemming from a higher rate environment. The improvement in net interest income from the prior calendar quarter helped to mitigate the reduction in noninterest income as mortgage activity slowed.
Non-interest Expense
Non-interest expense in the third quarter decreased by 16.88% compared to the linked quarter and increased by 1.74% compared to the same period in 2025. The decrease in non-interest expense compared to the linked quarter primarily relates to OREO activity in the second quarter that was resolved in the third quarter. The Bank also had reductions in compensation expense in the mortgage unit and lower professional fees due to recovery of legal fees.
The Efficiency Ratio was 79.39% for the quarter ended September 30, 2026, compared to 89.67% for the linked quarter and 77.43% for the same period in 2025.
Asset Quality
Non-accrual loans decreased in the third quarter to 3.26% of loans held-for-investment compared to 3.32% of loans held-for-investment at the end of the linked quarter, with only a slight net increase in non-accrual loans of $252 thousand, while held-for-investment loans increase by $23 million. Total non-performing assets (defined as the sum of loans on non-accrual, loans greater than 90 days past due and accruing, and OREO assets) were 2.42% of total assets as of September 30, 2026, compared to 2.57% of total assets, at the end of the linked quarter.
The Company recognized a provision for loan losses in the third quarter of $188,011 related to five consumer solar loans charged off in the quarter.
The Company's ratio of Allowance for Credit Losses to loans held-for-investment was 1.01% as of September 30, 2026, compared to the ratio of Allowance for Credit Losses to loans held-for-investment of 1.06% as of June 30, 2026.
Total Assets
Total assets on September 30, 2026 were $1.06 billion compared to total assets of $1.04 billion on June 30, 2026.
Total Liabilities
Total liabilities on September 30, 2026, were $977.64 million compared to total liabilities of $953.72 million on June 30, 2026. Total deposits were $900.59 million on September 30, 2026, compared to total deposits of $874.82 million on June 30, 2026. Non-interest-bearing demand deposits decreased by $5.587 million in the third quarter and comprised 15.15% of total deposits at the end of the third quarter. Federal Home Loan Bank borrowings remained flat at $45 million during the quarter.
Stockholders' Equity and Capital
Stockholders' equity as of September 30, 2026, was $81.4 million compared to $85.1 million on June 30, 2026, and stockholders' equity of $84.1 million on December 31, 2025. AOCI declined by $4.6 million over the quarter as interest rates rose and the Bank's marked to market assets adjusted accordingly. The tangible book value of the Company's common stock on September 30, 2026, was $11.80 per share compared to $12.20 on June 30, 2026, and tangible book value per share of $12.05 on December 31, 2025. Excluding AOCI losses/gains5, the tangible book value of the Company's common stock on September 30, 2026 was $14.58 per share compared to $14.29 on June 30, 2026, and $14.08 per share on December 31, 2025.
Stock Buyback Program
In the first quarter of 2026, the Company purchased 43,800 shares pursuant to its previously announced share repurchase program, but made no repurchases in the second quarter. In the third quarter, the Company repurchased 80,700 shares. As of September 30, 2026, the Company had repurchased 124,500 of the 250,000 shares authorized for repurchase under the program. Subsequent to quarter end, the Company utilized the remaining approved capacity and repurchased 125,500 shares. The Company then authorized a further 150,000 share repurchase program to provide the company with ability to repurchase shares as the market price presents the opportunity and as internal capital creation creates the capacity to do so as part of a disciplined capital management strategy.
Capital Ratios
As of September 30, 2026, the Bank's capital ratios were well above regulatory minimum capital ratios for well-capitalized bank holding companies. The Bank's capital ratios as of September 30, 2026, and June 30, 2026, were as follows:
September 30, 2026
June 30, 2026
Total Risk Based Capital Ratio
14.17 %
14.63 %
Tier 1 Risk Based Capital Ratio
13.23 %
13.66 %
Common Equity Tier 1 Capital Ratio
13.23 %
13.66 %
Tier 1 Leverage Ratio
10.81 %
11.06 %
Bylaw Amendments
The Amended Bylaws amend the Company's Bylaws dated September 20, 2021 (the "Prior Bylaws") to update advance notice provisions and the process for shareholders to request special meetings and establish exclusive forums to adjudicate certain types of disputes involving the Company.
Advance Notice Provisions
Section 2.5 of the Amended Bylaws (the "Advance Notice Provisions") amends the Prior Bylaws to describe the manner and timeframes in which a shareholder of the Company may properly nominate any person for election to the Board of Directors of the Company (the "Board") or bring business before, or at, an annual or special meeting of shareholders. The Advance Notice Provisions set forth the various eligibility requirements that must be met by (i) any shareholder who wishes to bring a nomination or propose any business before a meeting of shareholders and (ii) any nominee for election to the Board, as well as related substantive and procedural requirements that must be met with respect to any such nominations or business.
With respect to the Company's 2027 annual meeting of shareholders, the requirements set forth in the Advance Notice Provisions must be complied with not earlier than the close of business on December 31, 2026 and not later than the close of business on January 30, 2027. The Advance Notice Provisions are consistent with provisions found in the bylaws of many other community bank holding companies. The Advance Notice Provisions update the Prior Bylaws and provide a procedure that will assist all shareholders in being informed in advance of and providing adequate notice of any and all matters submitted for vote at any meeting of shareholders.
Request for Special Meetings
Section 2.4 of the Amended Bylaws provides that special meetings of shareholders will be called if the Company receives a valid written request from one or more shareholders owning, and having owned continuously for a period of at least one year, not less than 25% of all votes entitled to be cast on any issue proposed to be considered at the special meeting (the "Requisite Percentage"). Among other requirements, the written request must set forth: (i) a description of the business proposed to be brought before the special meeting; (ii) the complete text of any proposal or business to be presented at the special meeting; (iii) the name and address of each requesting shareholder; and (iv) the class and number of shares of the Company owned beneficially by each requesting shareholder, as well as other procedural requirements.
Section 2.4 of the Amended Bylaws modernizes a similar provision provided in the Prior Bylaws and provides a structure that will ensure all shareholders and the Company are informed sufficiently in advance of any business to be considered at a special meeting of shareholders.
Exclusive Forum Provisions
Article 11 of the Amended Bylaws (the "Exclusive Forum Provision") sets the forums available for the adjudication of certain types of disputes involving the Company or related matters.
The Exclusive Forum Provision provides that, unless the Company consents in writing to the selection of an alternative forum, the United States District Court for the Eastern District of Virginia, Alexandria Division, the Circuit Court of the County of Fairfax, Virginia, or any other state court located within the Commonwealth of Virginia shall, to the fullest extent permitted by law, be the sole and exclusive forum for many categories of claims asserted against the Company by its shareholders.
The foregoing description of the Amended Bylaws does not purport to be complete and is qualified in its entirety by reference to the full text of the Amended Bylaws.
About Freedom Financial Holdings, Inc.
Freedom Financial Holdings, Inc. is the holding company of The Freedom Bank of Virginia, a community bank with locations in Fairfax, Reston, Chantilly, Vienna, Tysons Corner, and Manassas, Virginia. For information about deposits, loans and other services, visit the website at www.freedom.bank.
Forward Looking Statements
This release contains forward-looking statements, including our expectations with respect to future events that are subject to various risks and uncertainties. Factors that could cause actual results to differ materially from management's projections, forecasts, estimates, and expectations include: fluctuation in market rates of interest and loan and deposit pricing; general economic and financial market conditions, in the United States generally and particularly in the markets in which the Company operates and in which its loans are concentrated, including the effects of declines in real estate values, increases in unemployment levels, inflation, recessions and slowdowns in economic growth, including as a result of the impact of geopolitical conflicts; the impact of any U.S. federal government shutdown; U.S. and global trade policies and changes, including the impact of the imposition of or changes in tariffs and trade barriers; adverse developments in the financial services industry; maintenance and development of well-established and valued client relationships and referral source relationships; the adequacy or inadequacy of our allowance for credit losses; acquisition or loss of key production personnel; and the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, wars, terrorist acts or public health events, and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on incidents of cyberattack and fraud, on the Company's liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth. The Company cautions readers that the list of factors above is not exclusive. The forward-looking statements are made as of the date of this release, and the Company may not undertake steps to update the forward-looking statements to reflect the impact of any circumstances or events that arise after the date the forward-looking statements are made. In addition, our past results of operations are not necessarily indicative of future performance.
FREEDOM FINANCIAL HOLDINGS
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Unaudited)
(Audited)
September 30,
June 30,
December 31,
2026
2026
2025
ASSETS
Cash and Due from Banks
$ 4,285,224
$ 5,458,898
$ 4,540,452
Interest Bearing Deposits with Banks
35,791,369
26,936,559
70,078,398
Securities Available-for-Sale
152,057,055
150,739,160
158,446,651
Securities Held-to-Maturity
17,389,914
17,846,586
19,242,952
Restricted Stock Investments
5,655,600
5,655,600
5,435,300
Loans Held for Sale
2,583,740
13,812,357
4,283,305
PPP Loans Held for Investment
-
112,661
117,738
Other Loans Held for Investment
786,820,262
763,549,261
762,435,469
Allowance for Loan Losses
(7,980,823)
(8,058,550)
(13,897,689)
Net Loans
781,423,179
769,415,729
752,938,823
Bank Premises and Equipment, net
1,480,787
1,499,670
728,030
Accrued Interest Receivable
4,349,970
4,525,299
4,059,501
Deferred Tax Asset
8,879,753
7,542,341
7,428,794
Bank-Owned Life Insurance
29,178,758
28,936,144
28,469,911
Right of Use Asset, net
5,158,069
5,339,622
1,582,514
Other Assets
13,394,560
14,970,136
12,931,701
Total Assets
$ 1,059,044,238
$ 1,038,865,744
$ 1,065,883,027
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Demand Deposits
Non-interest Bearing
$ 136,476,808
$ 142,064,271
$ 149,516,366
Interest Bearing
566,933,073
540,859,808
555,799,698
Savings Deposits
3,906,036
2,151,753
1,989,696
Time Deposits
193,271,214
189,748,053
206,958,024
Total Deposits
900,587,131
874,823,885
914,263,784
Federal Home Loan Bank Advances
45,000,000
45,000,000
40,000,000
Other Borrowings
-
-
117,737
Subordinated Debt (Net of Issuance Costs)
19,987,012
19,967,531
19,928,568
Accrued Interest Payable
696,158
546,253
913,813
Lease Liability
5,595,629
5,697,751
1,666,836
Other Liabilities
5,777,255
7,682,523
4,852,310
Total Liabilities
$ 977,643,185
$ 953,717,943
$ 981,743,048
Stockholders' Equity
Preferred stock, $0.01 par value, 5,000,000 shares authorized:
0 Shares Issued and Outstanding September 30, 2026, June 30, 2026, and December 31,
2025
-
-
-
Common Stock, $0.01 Par Value, 25,000,000 Shares authorized:
23,000,000 Shares Voting and 2,000,000 Shares Non-voting.
Voting Common Stock:
6,898,054, 6,978,754, and 6,984,013 Shares Issued and Outstanding
at September 30, 2026, June 30, 2026, and December 31, 2025 respectively
68,981
69,788
69,840
Non-Voting Common Stock:
-
-
-
0 Shares Issued and Outstanding at September 30, 2026, June 30, 2026, and December
31, 2025
respectively)
Additional Paid-in Capital
56,231,569
56,565,519
56,624,236
Accumulated Other Comprehensive Income, Net
(19,179,949)
(14,573,309)
(14,189,941)
Retained Earnings
44,280,452
43,085,803
41,635,844
Total Stockholders' Equity
$ 81,401,053
$ 85,147,801
$ 84,139,979
Total Liabilities and Stockholders' Equity
$ 1,059,044,238
$ 1,038,865,744
$ 1,065,883,027
FREEDOM FINANCIAL HOLDINGS
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
For the three
For the three
For the nine
For the nine
months ended
months ended
months ended
months ended
September 30, 2026
September 30, 2025
September 30, 2026
September 30, 2025
Interest Income
Interest and Fees on Loans
$ 11,653,085
$ 11,671,310
$ 34,580,172
$ 36,048,818
Interest on Investment Securities
1,758,978
2,307,732
5,319,325
7,371,904
Interest on Deposits with Other Banks
580,793
507,622
1,569,693
1,520,740
Total Interest Income
13,992,856
14,486,664
41,469,190
44,941,462
Interest Expense
Interest on Deposits
6,313,052
7,036,552
18,804,805
21,257,818
Interest on Borrowings
631,098
701,474
1,741,167
2,338,844
Total Interest Expense
6,944,150
7,738,026
20,545,972
23,596,662
Net Interest Income
7,048,706
6,748,638
20,923,218
21,344,800
Provision/(Recovery) for Loan Losses
188,011
496,824
786,152
1,470,372
Net Interest Income After
Provision for Loan Losses
6,860,695
6,251,814
20,137,066
19,874,428
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue
451,743
718,684
2,473,890
2,173,755
SBA Gain-on-Sale Revenue
-
-
-
-
Service Charges and Other Income
352,530
453,981
900,364
798,103
Servicing Income
13,769
19,060
47,263
66,207
Increase in Cash Surrender Value of Bank-
owned Life Insurance
242,615
231,549
708,848
675,474
Total Non-interest Income
1,060,657
1,423,274
4,130,365
3,713,539
Total Revenue
8,109,363
8,171,913
25,053,583
25,058,339
Non-Interest Expenses
Officer and Employee Compensation
and Benefits
4,051,333
4,067,037
12,828,920
11,589,333
Occupancy Expense
333,705
246,378
1,074,581
732,820
Equipment and Depreciation Expense
10,719
16,039
32,767
41,384
Insurance Expense
293,543
244,170
745,544
690,281
Professional Fees
374,782
291,975
1,160,589
1,322,188
Data and Item Processing
578,671
540,506
1,696,726
1,674,211
Advertising
77,980
112,566
269,370
347,357
Franchise Taxes and State Assessment Fees
331,618
334,422
988,034
963,080
Mortgage Fees and Settlements
89,018
106,266
316,908
280,814
Other Operating Expense
296,316
368,343
1,870,785
1,058,790
Total Non-interest Expenses
6,437,685
6,327,702
20,984,224
18,700,258
Income Before Income Taxes
1,483,667
1,347,386
3,283,207
4,887,709
Income Tax Expense/(Benefit)
289,019
224,456
638,598
945,538
Net Income
$ 1,194,648
$ 1,122,930
$ 2,644,609
$ 3,942,172
Earnings per Common Share - Basic
$ 0.17
$ 0.16
$ 0.38
$ 0.56
Earnings per Common Share - Diluted
$ 0.17
$ 0.16
$ 0.38
$ 0.56
Weighted-Average Common Shares
Outstanding - Basic
6,971,638
7,002,103
6,973,663
7,016,411
Weighted-Average Common Shares
Outstanding - Diluted
7,003,925
7,052,345
7,047,720
7,069,535
FREEDOM FINANCIAL HOLDINGS
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
For the three
For the three
For the three
For the three
For the three
months ended
months ended
months ended
months ended
months ended
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
Interest Income
Interest and Fees on Loans
$ 11,653,085
$ 11,650,836
$ 11,276,251
$ 11,337,250
$ 11,671,310
Interest on Investment Securities
1,758,978
1,787,268
1,773,078
2,224,322
2,307,732
Interest on Deposits with Other Banks
580,793
285,510
703,390
214,396
507,622
Total Interest Income
13,992,856
13,723,614
13,752,719
13,775,968
14,486,664
Interest Expense
Interest on Deposits
6,313,052
6,151,712
6,340,041
6,260,656
7,036,552
Interest on Borrowings
631,098
592,778
517,291
818,943
701,474
Total Interest Expense
6,944,150
6,744,490
6,857,332
7,079,599
7,738,026
Net Interest Income
7,048,706
6,979,124
6,895,387
6,696,369
6,748,638
Provision/(Recovery) for Loan Losses
188,011
538,805
59,336
6,941,897
496,824
Net Interest Income After
Provision for Loan Losses
6,860,695
6,440,319
6,836,051
(245,528)
6,251,814
Non-Interest Income
Mortgage Loan Gain-on-Sale and Fee Revenue
451,743
1,079,890
942,257
680,766
718,684
SBA Gain-on-Sale Revenue
-
-
-
-
-
Service Charges and Other Income
352,530
327,093
220,740
246,568
453,981
Servicing Income
13,769
16,001
17,493
18,303
19,060
Increase in Cash Surrender Value of Bank-
owned Life Insurance
242,615
235,334
230,899
233,820
231,549
Total Non-interest Income
1,060,657
1,658,318
1,411,389
1,179,457
1,423,274
Total Revenue
8,109,363
8,637,442
8,306,776
7,875,826
8,171,912
Non-Interest Expenses
Officer and Employee Compensation
and Benefits
4,051,333
4,373,967
4,403,621
3,562,780
4,067,037
Occupancy Expense
333,705
375,936
364,940
239,846
246,378
Equipment and Depreciation Expense
10,719
11,336
10,712
12,898
16,039
Insurance Expense
293,543
245,402
206,599
126,852
244,170
Professional Fees
374,782
439,501
346,305
375,040
291,975
Data and Item Processing
578,671
587,093
530,962
523,717
540,506
Advertising
77,980
109,791
81,600
63,476
112,566
Franchise Taxes and State Assessment Fees
331,618
329,846
326,569
324,569
334,422
Mortgage Fees and Settlements
89,018
153,051
74,839
70,037
106,266
Other Operating Expense
296,316
1,119,074
455,395
315,610
368,343
Total Non-interest Expenses
6,437,685
7,744,997
6,801,542
5,614,825
6,327,702
Income Before Income Taxes
1,483,667
353,640
1,445,898
(4,680,896)
1,347,386
Income Tax Expense/(Benefit)
289,019
64,019
285,560
(1,112,923)
224,456
Net Income (Loss)
$ 1,194,648
$ 289,621
$ 1,160,338
$ (3,567,973)
$ 1,122,930
Earnings (Loss) per Common Share - Basic
$ 0.17
$ 0.04
$ 0.17
$ (0.51)
$ 0.16
Earnings (Loss) per Common Share - Diluted
$ 0.17
$ 0.04
$ 0.16
$ (0.51)
$ 0.16
Weighted-Average Common Shares
Outstanding - Basic
6,971,638
6,977,123
6,972,234
6,991,296
7,002,103
Weighted-Average Common Shares
Outstanding - Diluted
7,003,925
7,003,072
7,041,732
7,053,605
7,052,345
Average Balances, Income and Expenses, Yields and Rates
(Unaudited)
Three Months Ended
Three Months Ended
Three Months Ended
Three Months Ended
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
Average Balance
Income/
Expense
Yield
Average Balance
Income/
Expense
Yield
Average Balance
Income/
Expense
Yield
Average Balance
Income/
Expense
Yield
Assets
Cash
$63,160,066
$580,793
3.65 %
$32,056,464
$277,476
3.47 %
$78,256,733
$703,390
3.65 %
$23,427,239
$214,395
3.63 %
Investments (Tax Exempt)
$18,767,278
$148,337
3.14 %
$19,253,217
$150,043
3.13 %
$19,983,529
$150,924
3.06 %
$20,215,951
$154,645
3.03 %
Investments (Taxable)
$156,519,115
$1,610,641
4.08 %
$160,163,550
$1,645,259
4.12 %
$161,336,487
$1,622,154
4.08 %
$188,641,324
$2,069,677
4.35 %
Total Investments
$175,286,394
$1,758,978
3.98 %
$179,416,767
4.01 %
$181,320,016
$1,773,078
3.97 %
$208,857,275
$2,224,322
4.23 %
Total Loans
$767,360,721
$11,653,085
6.02 %
$777,241,247
$11,650,836
6.01 %
$766,481,826
$11,276,251
5.97 %
$752,172,975
$11,337,250
5.98 %
Earning Assets
$1,005,807,181
$13,992,856
5.52 %
$988,714,478
$13,723,614
5.57 %
$1,026,058,575
$13,752,719
5.44 %
$984,457,489
$13,775,967
5.55 %
Assets
$1,064,155,189
$1,194,649
0.45 %
$1,047,065,095
$289,621
0.11 %
$1,075,063,057
$1,160,338
0.44 %
$1,036,072,664
($3,567,973)
-1.37 %
Liabilities
Interest Checking
$131,090,972
$900,098
2.72 %
$128,410,952
$862,935
2.70 %
$139,199,596
$872,499
2.54 %
$151,579,307
$934,090
2.44 %
Money Market
$296,982,982
$2,327,552
3.11 %
$281,596,967
$2,111,939
3.01 %
$314,492,661
$2,346,245
3.03 %
$297,707,680
$2,468,165
3.29 %
Savings
$2,516,362
$1,230
0.19 %
$2,298,115
$1,120
0.20 %
$2,092,200
$1,087
0.21 %
$1,973,024
$1,045
0.21 %
Time Deposits
$328,207,034
$3,084,172
3.73 %
$338,730,230
$3,175,717
3.76 %
$334,036,792
$3,120,209
3.79 %
$285,497,039
$2,857,356
3.97 %
Interest Bearing Deposits
$758,797,350
$6,313,052
3.30 %
$751,036,264
$6,151,711
3.29 %
$789,821,247
$6,340,041
3.26 %
$736,757,050
$6,260,656
3.37 %
Borrowings
$64,974,165
$631,098
3.85 %
$61,577,333
$592,778
3.86 %
$55,160,259
$517,291
3.80 %
$76,844,331
$818,943
4.23 %
Interest Bearing Liabilities
$823,771,515
$6,944,150
3.34 %
$812,613,597
$6,744,490
3.33 %
$844,981,507
$6,857,332
3.29 %
$813,601,381
$7,079,599
3.45 %
Non Interest Bearing Deposits
$ 143,326,933
$ 137,774,380
$ 135,220,445
$ 125,385,868
Cost of Funds
$ 967,098,448
$ 6,944,150
2.85 %
$ 950,387,978
$ 6,744,490
2.85 %
$ 980,201,952
$ 6,857,332
2.84 %
$ 938,987,249
$ 7,079,599
2.99 %
Net Interest Margin
$1,005,807,181
$7,048,706
2.78 %
$988,714,479
$6,979,124
2.83 %
$1,026,058,575
$6,895,388
2.73 %
$984,457,489
$6,696,368
2.70 %
Average Balances, Income and Expenses, Yields and Rates
(Unaudited)
Three Months Ended
Three Months Ended
Nine Months Ended
Nine Months Ended
September 30, 2026
September 30, 2025
September 30, 2026
September 30, 2025
Average Balance
Income/
Expense
Yield
Average Balance
Income/
Expense
Yield
Average Balance
Income/
Expense
Yield
Average Balance
Income/
Expense
Yield
Assets
Cash
$63,160,066
$580,793
3.65 %
$46,853,763
$507,622
4.30 %
$57,769,122
$1,561,660
3.61 %
$47,466,359
$1,520,740
4.28 %
Investments (Tax Exempt)
$18,767,278
$148,337
3.14 %
$19,928,687
$155,780
3.10 %
$19,330,220
$449,304
3.11 %
$19,994,303
$469,423
3.14 %
Investments (Taxable)
$156,519,115
$1,610,641
4.08 %
$193,341,006
$2,151,952
4.42 %
$159,322,071
$4,878,054
4.09 %
$203,275,182
$6,902,482
4.54 %
Total Investments
$175,286,394
$1,758,978
3.98 %
$213,269,693
$2,307,732
4.29 %
$178,652,291
$5,327,358
3.99 %
$223,269,485
$7,371,904
4.41 %
Total Loans
$767,360,721
$11,653,085
6.02 %
$744,905,635
$11,671,310
6.22 %
$770,364,484
$34,580,172
6.00 %
$754,691,193
$36,048,818
6.39 %
Earning Assets
$1,005,807,181
$13,992,856
5.52 %
$1,005,029,091
$14,486,664
5.72 %
$1,006,785,897
$41,469,189
5.51 %
$1,025,427,037
$44,941,463
5.86 %
Assets
$1,064,155,189
1,194,649
0.45 %
1,058,353,304
1,122,930
0.42 %
$1,062,054,492
2,644,608
0.33 %
$1,080,678,240
3,942,171
0.49 %
Liabilities
Interest Checking
$131,090,972
$900,098
2.72 %
$127,149,614
$998,124
3.11 %
$132,870,805
$2,635,533
2.65 %
$125,048,338
$2,907,310
3.11 %
Money Market
$296,982,982
$2,327,552
3.11 %
$320,887,145
$2,722,629
3.37 %
$297,626,732
$6,785,736
3.05 %
$281,254,921
$7,037,405
3.35 %
Savings
$2,516,362
$1,230
0.19 %
$2,415,353
$1,051
0.17 %
$2,303,779
$3,437
0.20 %
$4,506,656
$3,756
0.11 %
Time Deposits
$328,207,034
$3,084,172
3.73 %
$317,448,404
$3,314,747
4.14 %
$333,636,664
$9,380,098
3.76 %
$368,739,671
$11,309,346
4.10 %
Interest Bearing Deposits
$758,797,350
$6,313,052
3.30 %
$767,900,516
$7,036,551
3.64 %
$766,437,980
$18,804,804
3.28 %
$779,549,586
$21,257,817
3.65 %
Borrowings
$64,974,165
$631,098
3.85 %
$61,329,539
$701,474
4.54 %
$60,606,534
$1,741,167
3.84 %
$67,579,944
$2,338,844
4.63 %
Interest Bearing Liabilities
$823,771,515
$6,944,150
3.34 %
$829,230,055
$7,738,025
3.70 %
$827,044,514
$20,545,971
3.32 %
$847,129,530
$23,596,661
3.71 %
Non Interest Bearing Deposits
$ 143,326,933
$ 133,933,651
$ 138,803,615
$ 138,197,133
Cost of Funds
$ 967,098,448
$ 6,944,150
2.85 %
$ 963,163,705
$ 7,738,025
3.19 %
$ 965,848,129
$ 20,545,971
2.84 %
$ 985,326,663
$ 23,596,662
3.20 %
Net Interest Margin
$1,005,807,181
$7,048,706
2.78 %
$1,005,029,092
$6,748,638
2.66 %
$1,006,785,897
$20,923,218
2.78 %
$1,025,427,037
$21,344,802
2.78 %
Selected Financial Data by Quarter Ended:
(Unaudited)
Balance Sheet Ratios
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
Loans held-for-investment to Deposits
87.37 %
87.29 %
84.04 %
83.41 %
86.72 %
Income Statement Ratios (Quarterly)
Return on Average Assets (ROAA)
0.45 %
0.11 %
0.44 %
-1.37 %
0.41 %
Return on Average Equity (ROAE)
5.59 %
1.38 %
5.57 %
-15.96 %
5.57 %
Efficiency Ratio
79.39 %
89.67 %
81.88 %
71.29 %
77.43 %
Net Interest Margin
2.78 %
2.83 %
2.73 %
2.70 %
2.66 %
Yield on Average Earning Assets
5.52 %
5.57 %
5.44 %
5.55 %
5.72 %
Yield on Securities
3.98 %
4.01 %
3.97 %
4.23 %
4.29 %
Yield on Loans
6.02 %
6.01 %
5.97 %
5.98 %
6.22 %
Cost of Funds
2.85 %
2.85 %
2.84 %
2.99 %
3.19 %
Noninterest income to Total Revenue
13.08 %
19.20 %
16.99 %
14.98 %
17.42 %
Liquidity Ratios
Uninsured Deposits to Total Deposits
27.85 %
24.90 %
27.11 %
29.43 %
24.51 %
Total Liquidity to Uninsured Deposits
105.76 %
118.71 %
117.18 %
130.31 %
136.91 %
Total Liquidity to Unfunded Commitments, CDs and Borrowings maturing in next 30 days
140.58 %
166.82 %
206.16 %
251.78 %
209.14 %
Tangible Common Equity Ratio
7.69 %
8.20 %
8.00 %
7.91 %
8.45 %
Tangible Common Equity Ratio (adjusted for unrealized losses on HTM securities)
7.50 %
8.01 %
7.82 %
7.76 %
8.27 %
Available-for-Sale securities (as % of total securities)
89.74 %
89.41 %
89.58 %
89.17 %
90.64 %
Per Share Data
Tangible Book Value
$11.80
$12.20
$12.08
$12.05
$12.45
Tangible Book Value (ex AOCI)
$14.58
$14.29
$14.18
$14.08
$14.58
Share Price Data
Closing Price
$12.00
$12.15
$11.90
$11.83
$11.52
Book Value Multiple
102 %
100 %
99 %
98 %
93 %
Common Stock Data
Outstanding Shares at End of Period
6,898,054
6,978,754
6,973,747
6,984,013
7,002,103
Weighted Average shares outstanding, basic
6,971,638
6,977,123
6,972,234
6,991,296
7,002,103
Weighted Average shares outstanding, diluted
7,003,925
7,003,072
7,041,732
7,053,605
7,052,345
Capital Ratios (Bank Only)
Tier 1 Leverage ratio
10.81 %
11.06 %
10.70 %
11.05 %
11.23 %
Common Equity Tier 1 ratio
13.23 %
13.66 %
13.50 %
13.82 %
14.64 %
Tier 1 Risk Based Capital ratio
13.23 %
13.66 %
13.50 %
13.82 %
14.64 %
Total Risk Based Capital ratio
14.17 %
14.63 %
14.42 %
15.08 %
15.53 %
Credit Quality
Net Charge-offs to Average Loans
0.03 %
0.02 %
0.81 %
0.03 %
0.13 %
Total Non-performing Loans to loans held-for-investment
3.26 %
3.32 %
2.46 %
3.51 %
2.30 %
Total Non-performing Assets to Total Assets
2.42 %
2.57 %
1.95 %
2.51 %
1.65 %
Nonaccrual Loans to loans held-for-investment
3.26 %
3.32 %
2.50 %
3.51 %
2.30 %
Provision for Loan Losses
$188,011
$538,805
$59,336
$6,941,897
$496,824
Allowance for Loan Losses to net loans held-for-investment
1.01 %
1.06 %
1.00 %
1.82 %
0.96 %
Allowance for Loan Losses to net loans held-for-investment (ex PPP loans)
1.01 %
1.06 %
1.00 %
1.82 %
0.96 %
FREEDOM FINANCIAL HOLDINGS, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Quarter Ending
1Net Interest Margin
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
Average Earning Assets
$ 1,005,807,181
$ 988,714,478
$ 1,026,058,575
$ 984,457,489
$ 1,005,029,091
Yield on Interest Earning Assets (GAAP)
5.52 %
5.57 %
5.44 %
5.55 %
5.72 %
Net Interest Margin (NIM) (GAAP)
2.78 %
2.83 %
2.73 %
2.70 %
2.66 %
2Efficiency Ratio (Non-GAAP)
Quarter Ending
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
Net Interest Income
$ 7,048,706
$ 6,979,124
$ 6,895,387
$ 6,696,369
$ 6,748,638
Non-Interest Income
1,060,657
1,658,318
1,411,389
1,179,457
1,423,274
Total Revenue
$ 8,109,363
$ 8,637,442
$ 8,306,776
$ 7,875,826
$ 8,171,912
Non-Interest Expense
6,437,685
7,744,997
6,801,542
5,614,825
6,327,702
Efficiency Ratio (Non-GAAP)
79.39 %
89.67 %
81.88 %
71.29 %
77.43 %
3Liquidity Ratios (Non-GAAP)
Quarter Ending
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
Available-for-Sale Securities (as % of total securities)
89.74 %
89.41 %
89.58 %
89.17 %
90.64 %
Uninsured Deposits to Total Deposits
27.85 %
24.90 %
27.11 %
29.43 %
24.51 %
Total Liquidity to Uninsured Deposits
105.76 %
118.71 %
117.18 %
130.31 %
136.91 %
Total Liquidity to Unfunded Commitments, CDs and
Borrowings maturing in next 30 days
140.58 %
166.82 %
206.16 %
251.78 %
209.14 %
Tangible Common Equity Ratio
7.69 %
8.20 %
8.00 %
7.91 %
8.45 %
Tangible Common Equity Ratio(adjusted for unrealized losses
7.50 %
8.01 %
7.82 %
7.76 %
8.27 %
on HTM Securities)
Total Liquidity is the sum of cash, cash balances at banks, unencumbered available-for-sale securities and secured borrowing availability at the Federal Reserve
and the Federal Reserve Bank
4Total Revenue (Non-GAAP)
Quarter Ending
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
Net Interest Income
$ 7,048,706
$ 6,979,124
$ 6,895,387
$ 6,696,369
$ 6,748,638
Non-Interest Income
1,060,657
1,658,318
1,411,389
1,179,457
1,423,274
Total Revenue (non-GAAP)
$ 8,109,363
$ 8,637,442
$ 8,306,776
$ 7,875,826
$ 8,171,912
5Tangible Book Value (ex-AOCI) (non-GAAP)
Quarter Ending
September 30, 2026
June 30, 2026
March 31, 2026
December 31, 2025
September 30, 2025
Shareholder's Equity
$ 81,401,053
$ 85,147,801
$ 84,250,053
$ 84,139,979
$ 87,193,193
Outstanding Shares at End of Period
6,898,054
6,978,754
6,973,747
6,984,013
7,002,103
Tangible Book Value (GAAP)
$ 11.80
$ 12.20
$ 12.08
$ 12.05
$ 12.45
Accumulated Other Comprehensive Income (Net) (AOCI)
$ (19,179,949)
$ (14,573,309)
$ (14,645,539)
$ (14,189,941)
$ (14,881,004)
AOCI per share equivalent
(2.78)
(2.09)
(2.10)
(2.03)
(2.13)
Tangible Book Value (ex-AOCI) (non-GAAP)
$ 14.58
$ 14.29
$ 14.18
$ 14.08
$ 14.58
Contact:
Scott Clark
Senior Executive Vice President & Chief Financial Officer
Phone: 703-667-4119
Email: [email protected]
Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. ANZ Group Holdings Limited - Sponsored ADR (ANZGY - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Finance peers, we might be able to answer that question.
ANZ Group Holdings Limited - Sponsored ADR is one of 890 individual stocks in the Finance sector. Collectively, these companies sit at #5 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. ANZ Group Holdings Limited - Sponsored ADR is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for ANZGY's full-year earnings has moved 2.3% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, ANZGY has returned 18.2% so far this year. At the same time, Finance stocks have gained an average of 4.6%. This shows that ANZ Group Holdings Limited - Sponsored ADR is outperforming its peers so far this year.
Another stock in the Finance sector, Berkshire Hathaway B (BRK.B - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 7.8%.
In Berkshire Hathaway B's case, the consensus EPS estimate for the current year increased 4.6% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, ANZ Group Holdings Limited - Sponsored ADR belongs to the Financial - Miscellaneous Services industry, which includes 113 individual stocks and currently sits at #165 in the Zacks Industry Rank. This group has lost an average of 13.5% so far this year, so ANZGY is performing better in this area.
In contrast, Berkshire Hathaway B falls under the Insurance - Property and Casualty industry. Currently, this industry has 46 stocks and is ranked #65. Since the beginning of the year, the industry has moved +7.6%.
Going forward, investors interested in Finance stocks should continue to pay close attention to ANZ Group Holdings Limited - Sponsored ADR and Berkshire Hathaway B as they could maintain their solid performance.
Textron (TXT - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, TXT broke out above the 50-day moving average, suggesting a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
Shares of TXT have been moving higher over the past four weeks, up 13.3%. Plus, the company is currently a Zacks Rank #3 (Hold) stock, suggesting that TXT could be poised for a continued surge.
The bullish case solidifies once investors consider TXT's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on TXT for more gains in the near future.
Dutch Bros (BROS - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this drive-thru coffee chain operator and franchisor have returned +13.9%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Retail - Restaurants industry, which Dutch Bros falls in, has gained 10.3%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Dutch Bros is expected to post earnings of $0.24 per share, indicating a change of +26.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.2% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $0.98 points to a change of +29% from the prior year. Over the last 30 days, this estimate has changed -0.1%.
For the next fiscal year, the consensus earnings estimate of $1.29 indicates a change of +32.1% from what Dutch Bros is expected to report a year ago. Over the past month, the estimate has changed +1.6%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Dutch Bros is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Dutch Bros, the consensus sales estimate of $548.97 million for the current quarter points to a year-over-year change of +29.6%. The $2.14 billion and $2.66 billion estimates for the current and next fiscal years indicate changes of +30.4% and +24.4%, respectively.
Last Reported Results and Surprise HistoryDutch Bros reported revenues of $550.85 million in the last reported quarter, representing a year-over-year change of +32.5%. EPS of $0.33 for the same period compares with $0.26 a year ago.
Compared to the Zacks Consensus Estimate of $524.2 million, the reported revenues represent a surprise of +5.08%. The EPS surprise was +13.79%.
Over the last four quarters, Dutch Bros surpassed consensus EPS estimates three times. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Dutch Bros is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Dutch Bros. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Short sellers have piled into 10 stocks valued at $2 billion or more, and the crowding has reached extreme levels. Screener data reviewed Friday morning shows short interest above 34% of the float for every name on the list.
Heavy short interest carries real risk short sellers who profit when a stock falls. A surprise rally, however, can force them to buy back shares to limit losses, and the rush to cover can send prices sharply higher in a short squeeze.
ONDS stock is heavily shorted. Get all the details here. Here are the most heavily shorted stocks (with market caps above $2 billion and 14-day average trading volumes of at least 1 million shares) as Friday, according to data from Benzinga Pro.
The 10 Most-Shorted StocksThe LeadersVenture Global Inc. (NYSE:VG) leads the pack with 83.81% of its float sold short. The company also carries the largest market value in the group at $37.38 billion and has averaged 13.93 million shares traded per day over the past 14 sessions.
MiniMed Group Inc. (NASDAQ:MMED) ranks second at 72.56%. Dutch Bros Inc. (NYSE:BROS) claims third place at 49.08%, well behind the top two but still among the most crowded bearish bets in the market.
Ondas Holdings Inc. (NASDAQ:ONDS) follows at 43.86%. Ondas stands apart on trading activity. Its 14-day average volume of 61.94 million shares tops every other stock in the group by a wide margin.
Read Next
The Rest of the Pack Under Armour Inc. (NYSE:UAA) and Kohl’s Corp. (NYSE:KSS) both carry short interest above 40%. Beam Therapeutics Inc. (NASDAQ:BEAM) and Charter Communications Inc. (NASDAQ:CHTR) sit just below 40%, separated by less than half a percentage point. Navan Inc. (NASDAQ:NAVN) and Acadia Healthcare Co. Inc. (NASDAQ:ACHC) round out the top 10 at 36.11% and 34.54%, respectively. A Shaky BackdropMegacap earnings have rattled the market all week. Alphabet Inc. (NASDAQ:GOOG)(NASDAQ:GOOGL) shares tanked Thursday after the company reported worse-than-expected earnings, revenue and capital spending, along with negative free cash flow of $9.07 billion.
Friday brought more pain. Amazon.com Inc. (NASDAQ:AMZN) slid 7% and Intel Corp. (NASDAQ:INTC) sank 28% in early trading after both reported quarterly numbers that disappointed investors, pulling the Nasdaq down. Amazon missed on both earnings and revenue, while Intel issued guidance below expectations.
Crypto offered no relief. Binance halted trading Thursday after hackers allegedly linked to North Korea stole more than $6 billion, the largest crypto hack in history. The exchange said an initial investigation tied the breach to a compromised laptop belonging to one of its engineers, and co-founder Yi He pledged Binance will cover all hacking losses.
Bitcoin (CRYPTO:BTC) traded down 5% and under $77,000 on Friday morning, according to Benzinga Pro market data.
Sudden swings in sentiment can work in either direction for crowded trades. Fear can reward the bears. A relief rally can punish them fast.
What Could Spark a SqueezeEarnings beats, stronger guidance or a broad market rebound could each push short sellers to cover. Without a catalyst, bears may keep pressing their bets. Squeezes rarely announce themselves in advance. Each of these 10 stocks carries enough short interest to make the next surprise a big one.
Reminders: Highly shorted stocks are battlegrounds where negative fundamentals meet speculative trading. Short squeezes can deliver huge, fast gains, but at high risk and volatility. Monitoring the short interest leaderboard can help identify which stocks might be the next short squeeze, but timing such trades remains extremely challenging. Always conduct due diligence, as the volatility often reflects deep underlying risks and business uncertainty. Read Next
Image: Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Fox (FOXA - Free Report) Headquartered in New York, Fox Corporation is a news, sports and entertainment content provider. It became a standalone, publicly traded company on March 19, 2019 following the merger of Disney and Twenty-First Century Fox, Inc.
FOXA is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Consumer Discretionary stock. FOXA has a Momentum Style Score of A, and shares are up 5.3% over the past four weeks.
For fiscal 2027, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.12 to $6.06 per share. FOXA boasts an average earnings surprise of +45%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, FOXA should be on investors' short list.
Dominion Energy (D - Free Report) came out with quarterly earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.2 per share. This compares to earnings of $1.06 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +6.67%. A quarter ago, it was expected that this energy company would post earnings of $0.73 per share when it actually produced earnings of $0.79, delivering a surprise of +8.22%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Dominion Energy, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $5.62 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 17.03%. This compares to year-ago revenues of $4.53 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Dominion Energy shares have added about 11.2% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for Dominion Energy?While Dominion Energy has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Dominion Energy was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.69 on $4.4 billion in revenues for the coming quarter and $3.59 on $18.36 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Utility - Electric Power is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Consolidated Edison (ED - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on November 5.
This utility is expected to post quarterly earnings of $2.07 per share in its upcoming report, which represents a year-over-year change of +9%. The consensus EPS estimate for the quarter has been revised 12.2% higher over the last 30 days to the current level.
Consolidated Edison's revenues are expected to be $4.77 billion, up 5.2% from the year-ago quarter.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.82% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Corpay (CPAY - Free Report) Corpay, Inc. is a global commercial payments solution provider. The company's principal executive offices are at 3280 Peachtree Road, Suite 2400, Atlanta, GA 30305. Through its portfolio of brands, Corpay helps companies automate, secure, digitize and control payments to, or on behalf of, their employees and suppliers. Corpay serves businesses, partners and merchants in North America, Latin America, Europe and the Asia Pacific.
CPAY is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 14.5; value investors should take notice.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.05 to $27.45 per share. CPAY boasts an average earnings surprise of +3.6%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, CPAY should be on investors' short list.
WALTHAM, Mass., Oct. 30, 2026 (GLOBE NEWSWIRE) -- Werewolf Therapeutics, Inc. (the “Company” or “Werewolf”) (Nasdaq: HOWL), an innovative biopharmaceutical company pioneering the development of conditionally activated therapeutics engineered to stimulate the body's immune system for the treatment of cancer, today announced that it has been selected for an oral presentation and will present two posters at the upcoming Society for Immunotherapy of Cancer's (SITC) 2026 Annual Meeting, taking place November 4-8, 2026, in Phoenix, Arizona.
F5 Networks (FFIV - Free Report) has been beaten down lately with too much selling pressure. While the stock has lost 18.1% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Here's Why FFIV Could Experience a TurnaroundThe heavy selling of FFIV shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 26.6. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering FFIV in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 0.6% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, FFIV currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Total revenue of $258.9 millionNet income of $40.4 millionNet cash provided from operations of $114.5 millionRecord bookings quarter in Government Solutions, excluding quarter in which we booked the New York City Department of Transportation ("NYCDOT") contract renewalReaffirming fiscal year 2026 guidance provided August 5, 2026Board appointed Matthew Kvarda as Interim Chief Financial OfficerUpdate on Commercial Services' customer contracts , /PRNewswire/ -- Verra Mobility Corporation (NASDAQ: VRRM), a leading provider of smart mobility technology solutions, announced today the financial results for the third quarter ended September 30, 2026.
Third Quarter 2026 Financial Highlights
Revenue: Total revenue for the third quarter of 2026 was $258.9 million, a decrease of 1% compared to $261.9 million for the third quarter of 2025. Service revenue decreased 1%, driven by a 14% decline in our Commercial Services segment partially offset by 13% growth in our Government Solutions segment.Net income and Diluted Earnings Per Share ("EPS"): Net income for the third quarter of 2026 was $40.4 million, or $0.27 per share, based on 152.1 million diluted weighted average shares outstanding. Net income for the comparable 2025 period was $46.8 million, or $0.29 per share, based on 161.9 million diluted weighted average shares outstanding. The decrease in net income for the third quarter of 2026 was primarily due to decreased revenue and margins.Adjusted EPS*: Adjusted EPS for the third quarter of 2026 was $0.36 per share compared to $0.37 per share for the third quarter of 2025.Adjusted EBITDA*: Adjusted EBITDA was $103.9 million for the third quarter of 2026 compared to $113.3 million for the same period in 2025. Adjusted EBITDA Margin* was 40% and 43% of total revenue for the 2026 and 2025 periods, respectively. The primary driver of the Adjusted EBITDA margin decline was an approximate 560 basis point decline in the Commercial Services segment profit margin.Net Cash Provided from Operations: Cash provided by operating activities increased by $36.8 million from $77.7 million for the three months ended September 30, 2025 to $114.5 million for the three months ended September 30, 2026. Net income quarter-over-quarter decreased by $6.4 million, from $46.8 million in 2025 to $40.4 million in 2026. The aggregate adjustments to reconcile net income to net cash provided by operating activities decreased $12.3 million mainly due to decreases in stock-based compensation, deferred income taxes, and an uncertain tax position reserve release. The aggregate changes in operating assets and liabilities increased by $55.5 million in 2026 compared to the prior year period, of which the majority was attributable to a decrease in accounts receivable, partially offset by a decrease in accounts payable.Free Cash Flow*: Free Cash Flow was $89.4 million for the third quarter of 2026 compared to $49.0 million for the prior year period. The increase in Free Cash Flow is attributable to the items impacting cash provided by operating activities (as discussed above) and a reduction in capital expenditures.*Non-GAAP measure; refer to "Non-GAAP Financial Measures" further below for explanatory notes and a reconciliation to the most directly comparable GAAP measure.
We report our results of operations based on three operating segments:
Commercial Services offers automated toll and violations management and title and registration solutions to rental car companies, fleet management companies and other large fleet owners.Government Solutions delivers automated safety solutions to municipalities, school districts and government agencies, including services and technology that enable photo enforcement cameras to detect and process traffic violations related to speed, red-light, school bus and city bus lane management.Parking Solutions provides an integrated suite of parking software, transaction processing and hardware solutions to universities, municipalities, parking operators, healthcare facilities and transportation hubs in the United States and Canada.Third Quarter 2026 Segment Detail
The Commercial Services segment generated total revenue of $100.3 million, a 14% decrease compared to $117.3 million in the same period in 2025. Segment profit was $61.3 million, a 22% decrease from $78.3 million in the prior year period. The decreases in revenue and segment profit compared to the prior year period resulted from a $16.1 million or 20% reduction in rental car companies ("RAC") tolling revenue, due to the effect of contract extensions entered into with two of our significant customers on terms materially less favorable to us than those of the prior agreement, fleet volume fluctuations with one significant customer, and reduced travel demand compared to the same period in 2025. U.S Transportation and Security Administration passenger volume in the third quarter of 2026 was approximately 3% less compared to the prior year period. Revenue derived from fleet management companies decreased $2.2 million or 13% in 2026 compared to the same period in 2025 due to a one-time operational adjustment and prior period churn. Normalizing for these adjustments, fleet management revenue would have grown 4% over the prior year period. The segment profit margin was 61% for the third quarter of 2026 and 67% for the third quarter of 2025. Third quarter 2026 segment profit margins declined due to reduced RAC tolling revenue, increased credit loss expense and decreased volume rebates earned from total spend on credit card transactions due to decreased tolling and travel activity.The Government Solutions segment generated total revenue of $136.8 million, a 12% increase compared to $122.6 million in the same period in 2025. The increase was due to a 13% increase in service revenue over the prior year period, primarily driven by an increase of $8.6 million attributable to expansion in speed, red light, bus lane, school bus and other services, outside of NYCDOT. The remaining $5.6 million of growth, or 12%, is attributable to NYCDOT installation revenue on new camera installations, net of pricing changes under the new contract. In addition, product revenue increased approximately $0.1 million from the prior year period. The segment profit was $39.1 million in 2026 compared to $31.3 million in the prior year period with segment profit margins of 29% for 2026 and 26% for 2025. The increase in segment profit margins compared to the prior year period was primarily driven by NYCDOT installation volume, revenue mix and decreased wage expenses.The Parking Solutions segment generated total revenue of $21.7 million, a 2% decrease compared to $22.1 million in the same period in 2025, which was due primarily to a decrease in professional services and subscription services related to parking management solutions, partially offset by increases in software as a service ("SaaS") product offerings compared to the prior year period. The segment profit was $3.5 million compared to $3.8 million in the prior year period with segment profit margins of 16% for 2026 and 17% for 2025.Liquidity and Debt: As of September 30, 2026, cash and cash equivalents were $137.0 million and total debt, net was $1,033 million. Net cash provided by operating activities was $114.5 million for the three months ended September 30, 2026, and $211.8 million for the nine months ended September 30, 2026.
Net Debt and Net Leverage*: As of September 30, 2026, Net Debt was $903.3 million and Net Leverage was 2.2x, as compared to $971.8 million and 2.3x as of December 31, 2025.
*Non-GAAP measure; refer to "Non-GAAP Financial Measures" further below for explanatory notes and a reconciliation to the most directly comparable GAAP measure.
Change in Executive Leadership and Organizational Realignment
As previously announced, on September 30, 2026, the Board appointed Jon Newhard as President and Chief Executive Officer of Verra Mobility, effective November 1, 2026, following a comprehensive search led by the Board and an executive search firm. He will succeed Jon Keyser, who has served as Interim President and Chief Executive Officer during the leadership transition. Mr. Newhard brings more than two decades of experience in the transportation and mobility industry. His leadership will support the continued execution of Verra Mobility's strategy, build on the Company's strong foundation and position the business for long-term growth. To help facilitate a smooth transition, Mr. Keyser has agreed to serve as Special Advisor through the remainder of 2026.
On October 15, 2026, we announced that Craig Conti will step down as Executive Vice President and Chief Financial Officer, effective November 4, 2026. The Board has retained a leading executive search firm, Spencer Stuart, to conduct a comprehensive search for a permanent CFO who can help advance the Company's strategy and support its next phase of growth.
On October 29, 2026, the Board appointed Matthew Kvarda as Interim Chief Financial Officer, effective November 5, 2026, to serve until a permanent Chief Financial Officer is appointed.
Mr. Kvarda is a Managing Director of Alvarez & Marsal North America, LLC ("A&M") in Los Angeles, California where he has worked since 2004. At A&M, Mr. Kvarda has served as Interim Chief Financial Officer or Interim senior management for a variety of public and non-public companies including Jacuzzi Brands, TEAM, Inc., Revlon, Inc. and 23andMe. Prior to joining A&M, Mr. Kvarda was a Senior Director at KPMG, LLP from 2002 to 2003. Mr. Kvarda was also a Senior Director with Arthur Andersen & Co. from 1996 to 2002 and also served as an Assistant Vice President at Bank of America from 1992 to 1996. Mr. Kvarda earned a bachelor's degree in economics from the University of California, San Diego, and an MBA from the University of California, Los Angeles. The Board believes that Mr. Kvarda's extensive financial experience and prior experience serving as Interim Chief Financial Officer make him well suited to serve as Interim Chief Financial Officer of the Company.
Following the pending executive leadership transition, and upon evaluating how the company is organized and managed, the company will make a determination as to its future segment reporting.
Commercial Services Customer Contracts
In July 2026, we entered into a seven-year contract extension with Avis Budget Group ("ABG") following the withdrawal of its previously issued termination notice. The revised agreement included materially less favorable terms compared to the prior contract and provided ABG with greater flexibility to adjust its fleet volumes.
During the third quarter, ABG significantly and abruptly reduced its fleet volumes under the parties' agreement, contrary to its prior stated intent to continue the parties' longstanding relationship. Given the significant reduction in fleet volumes and other factors, we determined that our mutual interests were no longer aligned, and terminating the contract was in Verra Mobility's best interest. As a result, on October 2, 2026, Verra Mobility exercised its contractual right to terminate the agreement effective on January 30, 2027. We have engaged Quinn Emanuel Urquhart & Sullivan, LLP to vigorously support our protection of intellectual property, trade secrets and confidential information related to our tolling and violations solutions. Looking ahead, Verra Mobility will continue prioritizing opportunities that support sustainable growth and strong customer outcomes. We remain focused on serving our customers, managing the financial implications of these contractual changes and positioning the business for long-term success.
Separately, we also renewed our agreement with Hertz for five years, extending our more than 20 years of partnership, and agreed to collaborate on the development of new technology solutions. As previously disclosed, this contract extension was on materially less favorable terms to us than the prior agreement and contains fleet volume modulation rights that are subject to terms and conditions set forth in the agreement.
The Company's contract with Enterprise Mobility expires September 30, 2027, and Verra Mobility is following Enterprise's procurement process.
Goodwill and Intangible Assets Impairments
We recorded a $64.0 million impairment to goodwill in our Parking Solutions segment during the nine months ended September 30, 2026, which is presented in a separate line item on the condensed consolidated statements of operations. This was in connection with our 2026 assessment of goodwill impairment which determined that the Parking Solutions reporting unit carrying value exceeded the estimated fair value. As part of this assessment, we determined that the carrying value of certain intangibles within the Parking Solutions segment were not recoverable and recorded a $40.4 million impairment to intangibles in our Parking Solutions segment during the nine months ended September 30, 2026, which is presented in a separate line item on the condensed consolidated statements of operations.
2026 Full Year Guidance
Based on year-to-date 2026 results and our outlook for the fourth quarter, we are reaffirming 2026 full year guidance for all financial measures, provided in our second quarter earnings announcement, dated August 5, 2026.
Total Revenue of $945 million to $965 millionAdjusted EBITDA of $360 million to $370 millionAdjusted EPS of $1.11 to $1.17Free Cash Flow of $105 million to $115 millionUnderlying Assumptions for 2026 Full Year Guidance
Full Year 2026 TSA volume assumed to decline over 1% compared to full year 2025.Weighted average fully diluted share count expected to be approximately 153 million shares for the full year 2026Effective tax rate (including state taxes) is expected to be 28.0% to 29.0%, with approximately $30 million in total cash taxes expected to be paid in 2026. The effective tax rate for non-GAAP adjustments is provided in the Reconciliation of Net Income to Adjusted Net Income and Calculation of Adjusted EPSDepreciation and amortization expense expected to be approximately $120 million for 2026Total interest expense, net expected to be approximately $62 million, of which approximately $60 million is expected to be net cash interest paidChange in working capital (change in operating assets and liabilities) is expected to result in a use of cash of approximately $40 million for 2026 primarily related to both our RAC contract renewals and the timing of expenditures and collections of our ongoing installation work in New York CityCapital expenditures (purchases of installation and service parts and property and equipment) are expected to be approximately $125 million for 2026 relating primarily to camera installations and MOSAIC implementationThe forward-looking guidance provided includes Adjusted EBITDA, Adjusted EPS, and Free Cash Flow, all of which are non-GAAP financial measures and are defined below.
Conference Call
As previously announced, given the pending leadership transitions, Verra Mobility will not hold a conference call in connection with the release of its third quarter financial results. The Company expects to resume its customary quarterly earnings conference calls beginning with its fourth quarter and full-year 2026 results.
About Verra Mobility
Verra Mobility Corporation (NASDAQ: VRRM) is a leading provider of smart mobility technology solutions that make transportation safer, smarter, and more connected. The company sits at the center of the mobility ecosystem, bringing together vehicles, hardware, software, data, and people to enable safe, efficient solutions for customers globally. Verra Mobility's transportation safety systems and parking management solutions protect lives, improve urban and motorway mobility, and support healthier communities. The company also solves complex payment, utilization, and compliance challenges for fleet owners and rental car companies. Headquartered in Arizona, Verra Mobility operates in the United States, Australia, Europe, and Canada. For more information, please visit www.verramobility.com.
Forward-Looking Statements
This press release contains forward-looking statements which address our expected future business and financial performance, and may contain words such as "goal," "target," "future," "estimate," "expect," "anticipate," "intend," "plan," "believe," "seek," "project," "may," "should," "will" or similar expressions. Forward-looking statements include statements regarding changes and trends in the market for our products and services, including expected operating results and metrics, such as revenue growth and expected margins; expansion plans and opportunities; expectations regarding the impact of the termination of our contract with ABG, effective January 30, 2027, and our ability to replace the revenue expected under that contract; expectations regarding fluctuations in fleet volume under our arrangement with our second significant Commercial Services customer; expectations relating to our selection by the City of Los Angeles to implement California's largest speed safety program and the contract with NYCDOT; expectations regarding the upcoming renewal of our contract with our third significant Commercial Services customer; our ability to protect our intellectual property, trade secrets and confidential information; our ability to support sustainable growth and strong customer outcomes; our leadership transitions, including the transition to our new President and Chief Executive Officer and the search for a permanent Chief Financial Officer; potential changes to our segment reporting; full year guidance for 2026, including expected total revenue, Adjusted EBITDA, Adjusted EPS, and Free Cash Flow, and the underlying assumptions for the 2026 full-year guidance, including anticipated TSA volume, expected weighted average fully diluted share count, effective tax rate and cash taxes, expected depreciation and amortization expenses, expected interest expense, net and total net cash interest, expected change in working capital, expected capital expenditures, and expected operating expenditures; expectations relating to momentum across key growth areas and our pipeline; our ability to meet our long-term outlook; the expected benefits of our smart mobility platform, including margin expansion impact; and expectations concerning our share repurchase program. Forward-looking statements involve risks and uncertainties, and a number of factors could cause actual results to differ materially from those currently anticipated. These factors include, but are not limited to, the impact of negative industry and macroeconomic conditions, including inflation and higher interest rates, the impact of government actions and regulations, such as tariffs, trade protection measures, and military conflicts, on our customers or Verra Mobility; customer concentration in our Commercial Services and Government Solutions segments, including risks impacting these segments such as travel demand and legislation, and the risk of losing a customer; risks related to our contract with NYCDOT, which comprises a material portion of our revenue, including the timing of payments; risks related to the termination of our contract with one of our significant Commercial Services customers, effective January 30, 2027, and our ability to replace the revenue expected under that contract on a timely basis or at all; risks associated with fluctuations in fleet volume under the contract extension with our second significant Commercial Services customer; risks related to the upcoming renewal of our contract with our third significant Commercial Services customer, which may involve a competitive process, including the risk that we may not be successful in retaining the contract or may retain it only on terms less favorable to us than the current agreement; risks related to the future termination of any such contracts; risks and uncertainties related to our government contracts, including legislative changes, termination rights, delays in payments, audits, and investigations; decreases in the prevalence or political acceptance of, or an increase in governmental restrictions regarding, automated and other similar methods of photo enforcement, parking solutions, or the use of tolling; our ability to successfully implement our acquisition strategy or integrate acquisitions; failures in or breaches of our networks or systems, including as a result of cyber-attacks or other incidents; risks and uncertainties related to our international operations and our ability to develop and successfully market new products and technologies into new markets; our failure to acquire necessary intellectual property or adequately protect our intellectual property; our ability to successfully improve operational efficiencies, generate cost savings, and achieve expected benefits from our transformation and strategic initiatives, including organizational changes that could result in a change to our segment reporting; risks related to our ongoing leadership transitions, including the transition to our new President and Chief Executive Officer, our reliance on an Interim Chief Financial Officer provided through a third-party engagement and the search for a permanent Chief Financial Officer, and our ability to attract and retain key management personnel; our ability to manage our substantial level of indebtedness; our ability to maintain effective internal controls over financial reporting; risks related to our goodwill and intangible assets, which have been subject to impairment and may be subject to further impairment in the future; our ability to properly perform under our contracts and otherwise satisfy our customers; risks associated with the use of artificial intelligence ("AI") and related tools and our ability to achieve expected benefits from AI; our ability to incorporate AI into our business and transform our data into valuable insights, deliver more intelligent software and hardware, improve our efficiency of our operations and create a new generation of AI-enabled transportation solutions that strengthens customer outcomes, improves roadway safety and increases the long-term value of our technology platform; decreased interest in outsourcing from our customers; our ability to keep up with technological developments and changing customer preferences; our ability to compete in a highly competitive and rapidly evolving market; risks and uncertainties related to our share repurchase program; risks and uncertainties related to litigation, including pending securities litigation, and other disputes and regulatory investigations; our reliance on specialized third-party providers; and other risks and uncertainties indicated from time to time in documents we filed or will file with the Securities and Exchange Commission (the "SEC"). In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this press release can or will be achieved. This press release should be read in conjunction with the information included in our other press releases, reports, and other filings with the SEC. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2025 Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2026, June 30, 2026, and September 30, 2026. These forward-looking statements speak only as of the date of this press release and except to the extent required by applicable law, we do not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments, or otherwise. Understanding the information contained in these filings is important in order to fully understand our reported financial results and our business outlook for future periods.
Additional Information
We periodically provide information for investors on our corporate website, www.verramobility.com, and our investor relations website, ir.verramobility.com.
We intend to use our website including our quarterly earnings presentation as a means of disclosing material non-public information, additional financial and operating metrics and for complying with disclosure obligations under Regulation FD. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings, public conference calls, webcasts, and social media. In addition, you may enroll to automatically receive e-mail alerts and other information about our company by visiting "Email Alerts" under the "Investor Resources" section of the "Investors" portion of our website.
Non-GAAP Financial Measures
In addition to disclosing financial results that are determined in accordance with U.S. generally accepted accounting principles ("GAAP"), we also disclose certain non-GAAP financial information in this press release. These financial measures are not recognized measures under GAAP and are not intended to be, and should not be, considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, Adjusted EPS, Adjusted EBITDA Margin, Net Debt, and Net Leverage are non-GAAP financial measures as defined by SEC rules. These non-GAAP financial measures may be determined or calculated differently by other companies. As a result, they may not be comparable to similarly titled performance measures presented by other companies. Reconciliations of these non-GAAP measurements to the most directly comparable GAAP financial measurements have been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliations.
We are not providing a quantitative reconciliation of Adjusted EBITDA, Adjusted EPS, or Free Cash Flow which are included in our 2026 financial guidance above, in reliance on the "unreasonable efforts" exception for forward-looking non-GAAP measures set forth in SEC rules because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated without unreasonable effort and expense. In this regard, we are unable to provide a reconciliation of forward-looking Adjusted EBITDA to GAAP net income, Adjusted EPS to net income per share and Free Cash Flow to net cash provided by operating activities, due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation. Due to the uncertainty of estimates and assumptions used in preparing forward-looking non-GAAP measures, we caution investors that actual results could differ materially from these non-GAAP financial projections.
We use the non-GAAP metrics EBITDA, Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA Margin to measure our performance from period to period, to evaluate and fund incentive compensation programs and to compare our results to those of our competitors. We use the non-GAAP metrics Free Cash Flow in connection with managing the business and we use the non-GAAP metrics "Net Debt" and "Net Leverage" to understand our overall leverage position and to evaluate capital allocation decisions. In addition, we also believe that these non-GAAP measures provide useful information to investors regarding financial and business trends related to our results of operations and that when non-GAAP financial information is viewed with GAAP financial information, investors are provided with a more meaningful understanding of our ongoing operating performance, liquidity, and leverage relative to other periods. These non-GAAP measures have certain limitations as analytical tools and should not be used as substitutes for net income, cash flows from operations, earnings per share, other consolidated income, cash flow, or debt data prepared in accordance with GAAP.
EBITDA and Adjusted EBITDA
We define "EBITDA" as net income adjusted to exclude interest expense, net, income taxes, depreciation and amortization. "Adjusted EBITDA" further excludes certain non-cash expenses and non-recurring items.
Free Cash Flow
We define "Free Cash Flow" as net cash flow provided by operating activities less purchases of installation and service parts and property and equipment.
Adjusted Net Income
We define "Adjusted Net Income" as net income adjusted to exclude amortization of intangibles and certain non-cash or non-recurring expenses such as loss on extinguishment of debt, among other items.
Adjusted EPS
We define "Adjusted EPS" as Adjusted Net Income divided by the diluted weighted average shares for the period.
Adjusted EBITDA Margin
We define "Adjusted EBITDA Margin" as Adjusted EBITDA as a percentage of total revenue.
Net Debt
We define "Net Debt" as total debt, net excluding original issue discounts and unamortized deferred financing costs, less cash and cash equivalents.
Net Leverage
We define "Net Leverage" as Net Debt divided by the trailing twelve months Adjusted EBITDA as of the current quarter-end.
Additional Metrics
Recurring Revenue or Recurring Service Revenue
We define "Recurring Revenue" or "Recurring Service Revenue" as all revenue other than product sales for each of our segments, as we typically generate revenue on a recurring monthly basis under long-term contracts with our customers. This includes our Commercial Services segment where we generate service revenue through processing of tolls, violations, and titles and registrations.
TSA Volume
TSA passenger volume represents the number of airline passengers passing through Transportation Security Administration checkpoints.
VERRA MOBILITY CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except per share data)
September 30,
2026
December 31,
2025
Assets
Current assets:
Cash and cash equivalents
$ 136,972
$ 65,272
Restricted cash
3,144
3,046
Accounts receivable (net of allowance for credit losses of $20.7 million and $23.0
million at September 30, 2026 and December 31, 2025, respectively)
192,181
234,288
Unbilled receivables
108,721
56,100
Inventory
21,412
20,662
Prepaid expenses and other current assets
65,313
61,534
Total current assets
527,743
440,902
Installation and service parts, net
38,173
27,081
Property and equipment, net
266,947
208,703
Operating lease assets
43,869
36,359
Intangible assets, net
87,164
168,641
Goodwill
676,789
741,610
Other non-current assets
31,724
22,366
Total assets
$ 1,672,409
$ 1,645,662
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$ 132,591
$ 101,813
Deferred revenue
28,863
26,650
Accrued liabilities
80,736
69,851
Tax receivable agreement liability, current portion
5,257
5,257
Current portion of debt
9,506
6,888
Total current liabilities
256,953
210,459
Debt, net of current portion
1,023,056
1,021,157
Operating lease liabilities, net of current portion
45,807
31,338
Tax receivable agreement liability, net of current portion
33,418
38,418
Asset retirement obligations
19,096
17,789
Deferred tax liabilities, net
10,319
16,341
Other long-term liabilities
18,943
17,200
Total liabilities
1,407,592
1,352,702
Commitments and contingencies
Stockholders' equity
Preferred stock, $0.0001 par value
—
—
Class A common stock, $0.0001 par value
15
15
Additional paid-in capital
542,140
547,274
Accumulated deficit
(267,736)
(243,759)
Accumulated other comprehensive loss
(9,602)
(10,570)
Total stockholders' equity
264,817
292,960
Total liabilities and stockholders' equity
$ 1,672,409
$ 1,645,662
VERRA MOBILITY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
(In thousands, except per share data)
2026
2025
2026
2025
Service revenue
$ 239,905
$ 243,219
$ 700,007
$ 678,598
Product sales
18,970
18,719
46,027
42,619
Total revenue
258,875
261,938
746,034
721,217
Cost of service revenue, excluding depreciation and
amortization
14,888
9,246
36,489
18,658
Cost of product sales
17,638
12,826
39,963
29,804
Operating expenses
90,404
88,036
266,924
243,092
Selling, general and administrative expenses
43,438
47,757
128,281
147,724
Depreciation, amortization and (gain) loss on disposal
of assets, net
26,947
29,264
85,405
86,551
Goodwill impairment
—
—
64,037
—
Impairment of intangible assets
—
—
40,354
—
Total costs and expenses
193,315
187,129
661,453
525,829
Income from operations
65,560
74,809
84,581
195,388
Interest expense, net
15,027
16,421
45,920
49,629
Loss on extinguishment of debt
—
21
—
69
Other income, net
(4,744)
(6,298)
(14,878)
(16,410)
Total other expenses
10,283
10,144
31,042
33,288
Income before income taxes
55,277
64,665
53,539
162,100
Income tax provision
14,889
17,826
34,585
44,347
Net income
$ 40,388
$ 46,839
$ 18,954
$ 117,753
Other comprehensive income (loss):
Change in foreign currency translation adjustment
144
(790)
968
7,723
Total comprehensive income
$ 40,532
$ 46,049
$ 19,922
$ 125,476
Net income per share:
Basic
$ 0.27
$ 0.29
$ 0.12
$ 0.74
Diluted
$ 0.27
$ 0.29
$ 0.12
$ 0.73
Weighted average shares outstanding:
Basic
151,996
159,552
151,930
159,525
Diluted
152,120
161,861
152,988
161,824
VERRA MOBILITY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended September 30,
($ in thousands)
2026
2025
Cash Flows from Operating Activities:
Net income
$ 40,388
$ 46,839
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
26,223
28,534
Amortization of deferred financing costs and discounts
547
953
Loss on extinguishment of debt
—
21
Unrealized loss on remeasurement of share-based proceeds
819
—
Credit loss expense
6,626
4,521
Deferred income taxes
5,016
9,173
Stock-based compensation
721
4,961
Uncertain tax position reserve release
(4,008)
—
Other
819
870
Changes in operating assets and liabilities:
Accounts receivable
60,500
(15,961)
Unbilled receivables
(11,398)
(7,731)
Inventory
(5,529)
3,580
Prepaid expenses and other assets
(2,977)
(11,119)
Deferred revenue
7,137
(442)
Accounts payable and other current liabilities
(13,973)
20,385
Other liabilities
3,618
(6,869)
Net cash provided by operating activities
114,529
77,715
Cash Flows from Investing Activities:
Purchases of installation and service parts and property and equipment
(25,117)
(28,750)
Cash proceeds from the sale of assets
296
116
Net cash used in investing activities
(24,821)
(28,634)
Cash Flows from Financing Activities:
Borrowings on Amended Revolver
23,000
—
Repayment on Amended Revolver
(23,000)
—
Repayment of term loan debt
(1,722)
(2,255)
Equipment financing arrangements
15
—
Repayment of equipment financing arrangements
(732)
—
Payment of debt issuance costs
(182)
(187)
Proceeds from the exercise of stock options
—
213
Payment of employee tax withholding related to RSUs and PSUs vesting
(58)
(171)
Net cash used in financing activities
(2,679)
(2,400)
Effect of exchange rate changes on cash and cash equivalents
(103)
(307)
Net increase in cash, cash equivalents and restricted cash
86,926
46,374
Cash, cash equivalents and restricted cash - beginning of period
53,190
153,925
Cash, cash equivalents and restricted cash - end of period
$ 140,116
$ 200,299
VERRA MOBILITY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30,
($ in thousands)
2026
2025
Cash Flows from Operating Activities:
Net income
$ 18,954
$ 117,753
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
83,978
85,179
Amortization of deferred financing costs and discounts
1,669
2,856
Loss on extinguishment of debt
—
69
Share-based proceeds from legal settlement
(7,865)
—
Unrealized loss on remeasurement of share-based proceeds
3,447
—
Credit loss expense
13,836
18,377
Deferred income taxes
(246)
4,706
Stock-based compensation
7,868
18,696
Uncertain tax position reserve release
(4,008)
(1,682)
Goodwill impairment
64,037
—
Impairment of intangible assets
40,354
—
Other
1,700
2,097
Changes in operating assets and liabilities:
Accounts receivable
28,088
(39,635)
Unbilled receivables
(52,256)
(10,441)
Inventory
(15,274)
3,762
Prepaid expenses and other assets
8,060
(5,144)
Deferred revenue
2,128
(498)
Accounts payable and other current liabilities
8,958
28,285
Other liabilities
8,347
(8,552)
Net cash provided by operating activities
211,775
215,828
Cash Flows from Investing Activities:
Purchases of installation and service parts and property and equipment
(80,165)
(84,868)
Cash proceeds from the sale of assets
507
215
Net cash used in investing activities
(79,658)
(84,653)
Cash Flows from Financing Activities:
Borrowings on Amended Revolver
133,500
—
Repayment on Amended Revolver
(133,500)
—
Repayment of term loan debt
(5,166)
(6,764)
Equipment financing arrangements
2,923
—
Repayment of equipment financing arrangements
(942)
—
Payment of debt issuance costs
(718)
(449)
Share repurchases and retirement
(51,567)
—
Proceeds from the exercise of stock options
336
1,054
Payment of employee tax withholding related to RSUs and PSUs vesting
(5,532)
(7,161)
Net cash used in financing activities
(60,666)
(13,320)
Effect of exchange rate changes on cash and cash equivalents
347
1,290
Net increase in cash, cash equivalents and restricted cash
71,798
119,145
Cash, cash equivalents and restricted cash - beginning of period
68,318
81,154
Cash, cash equivalents and restricted cash - end of period
$ 140,116
$ 200,299
VERRA MOBILITY CORPORATION
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
($ in thousands)
2026
2025
2026
2025
Net income
$ 40,388
$ 46,839
$ 18,954
$ 117,753
Interest expense, net
15,027
16,421
45,920
49,629
Income tax provision
14,889
17,826
34,585
44,347
Depreciation and amortization
26,223
28,534
83,978
85,179
EBITDA
96,527
109,620
183,437
296,908
Transaction and other related expenses (i)
123
—
123
1,093
Transformation expenses (ii)
5,743
283
13,155
(1,120)
Legal accrual/settlement (iii)
820
(1,540)
(8,360)
(1,540)
Goodwill impairment (iv)
—
—
64,037
—
Impairment of intangible assets (v)
—
—
40,354
—
Transfer pricing adjustments
5
—
2
—
Loss on extinguishment of debt
—
21
—
69
Stock-based compensation (vi)
721
4,961
7,868
18,696
Adjusted EBITDA
$ 103,939
$ 113,345
$ 300,616
$ 314,106
Adjusted EBITDA Margin
40 %
43 %
40 %
44 %
Net Income Margin
16 %
18 %
3 %
16 %
Revenue
258,875
261,938
746,034
721,217
(i)
Transaction and other related expenses for the periods presented primarily related to deal costs incurred for potential acquisitions.
(ii)
Transformation expenses for the 2026 periods consist of severance and other employee separation costs. Transformation expenses for the nine-month period in 2025 represent a non-cash benefit in relation to a building lease.
(iii)
For the three months ended September 30, 2026 this consists of the quarterly adjustment relating to the equity securities to remeasure to fair value at the end of the reporting period. For the nine months ended September 30, 2026 this relates to a legal settlement finalized in the first quarter of 2026 in the form of cash and equity securities, an adjustment relating to the equity securities to remeasure to fair value at the end of the reporting period, and directly associated legal costs incurred during the quarter. For the 2025 periods, this relates to adjustments to loss contingencies.
(iv)
This relates to the non-cash impairment of goodwill in our Parking Solutions segment further discussed above.
(v)
This relates to the non-cash impairment of intangible assets in our Parking Solutions segment further discussed above.
(vi)
Stock-based compensation represents the non-cash charge related to the issuance of awards under the Verra Mobility Corporation Amended and Restated 2018 Equity Incentive Plan.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH
FLOW (Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
($ in thousands)
2026
2025
2026
2025
Net cash provided by operating activities
$ 114,529
$ 77,715
$ 211,775
$ 215,828
Purchases of installation and service parts and
property and equipment
(25,117)
(28,750)
(80,165)
(84,868)
Free Cash Flow
$ 89,412
$ 48,965
$ 131,610
$ 130,960
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME AND CALCULATION OF
ADJUSTED EPS (Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
(In thousands, except per share data)
2026
2025
2026
2025
Net income
$ 40,388
$ 46,839
$ 18,954
$ 117,753
Amortization of intangibles
11,575
15,645
41,490
48,719
Transaction and other related expenses (i)
123
—
123
1,093
Transformation expenses (ii)
5,743
283
13,155
(1,120)
Legal accrual/settlement (iii)
820
(1,540)
(8,360)
(1,540)
Goodwill impairment (iv)
—
—
64,037
—
Impairment of intangible assets (v)
—
—
40,354
—
Tax credit on impairment
—
—
(11,254)
—
Loss on extinguishment of debt
—
21
—
69
Stock-based compensation (vi)
721
4,961
7,868
18,696
Total adjustments before income tax effect
18,982
19,370
147,413
65,917
Income tax effect on adjustments
(5,315)
(5,611)
(15,198)
(19,096)
Total adjustments after income tax effect
13,667
13,759
132,215
46,821
Adjusted Net Income
$ 54,055
$ 60,598
$ 151,169
$ 164,574
Adjusted EPS
$ 0.36
$ 0.37
$ 0.99
$ 1.02
Diluted weighted average shares outstanding
152,120
161,861
152,988
161,824
Annual estimated effective income tax rate (vii)
28 %
29 %
28 %
29 %
(i)
Transaction and other related expenses for the periods presented primarily related to deal costs incurred for potential acquisitions.
(ii)
Transformation expenses for the 2026 periods consist of severance and other employee separation costs. Transformation expenses for the nine-month period in 2025 represent a non-cash benefit in relation to a building lease.
(iii)
For the three months ended September 30, 2026 this consists of the quarterly adjustment relating to the equity securities to remeasure to fair value at the end of the reporting period. For the nine months ended September 30, 2026 this relates to a legal settlement finalized in the first quarter of 2026 in the form of cash and equity securities, an adjustment relating to the equity securities to remeasure to fair value at the end of the reporting period, and directly associated legal costs incurred during the quarter. For the 2025 periods, this relates to adjustments to loss contingencies.
(iv)
This relates to the non-cash impairment of goodwill in our Parking Solutions segment further discussed above.
(v)
This relates to the non-cash impairment of intangible assets in our Parking Solutions segment further discussed above.
(vi)
Stock-based compensation represents the non-cash charge related to the issuance of awards under the Verra Mobility Corporation Amended and Restated 2018 Equity Incentive Plan.
(vii)
The annual estimated effective tax rate used above excludes discrete items as they do not impact taxable income. This rate differs from the period-to-date effective tax rate used on our condense consolidated statements of operations which includes the discrete items.
RECONCILIATION OF TOTAL DEBT, NET TO NET DEBT AND NET LEVERAGE (Unaudited)
($ in thousands)
September 30,
2026
December 31,
2025
Total debt, net
$ 1,032,562
$ 1,028,045
Original issue discounts
1,948
2,193
Unamortized deferred financing costs
5,810
6,844
Total debt, excluding original issue discounts and unamortized deferred financing
costs
1,040,320
1,037,082
Cash and cash equivalents
(136,972)
(65,272)
Net Debt
$ 903,348
$ 971,810
Net Leverage
2.2x
2.3x
Trailing twelve months adjusted EBITDA (i)
402,415
415,905
(i)
Trailing Twelve Months or "TTM" refers to the trailing four quarters and is calculated by adding the sum of the current quarter's and the prior three quarters' being measured.
QUARTERLY RESULTS AND RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED
EBITDA
(Unaudited)
($ in millions)
Q1 2025
Q2 2025
Q3 2025
Q4 2025
TTM
2025
Q1 2026
Q2 2026
Q3 2026
TTM
2026
Net income (loss)
$ 32.3
$ 38.6
$ 46.8
$ 18.9
$ 136.6
$ 26.7
$ (48.2)
$ 40.4
$ 37.8
Interest expense, net
16.6
16.6
16.4
15.0
64.6
15.4
15.5
15.0
60.9
Income tax provision
12.5
14.0
17.8
14.0
58.3
13.7
6.0
14.9
48.6
Depreciation and amortization
27.6
29.1
28.6
28.9
114.2
29.3
28.5
26.2
112.9
EBITDA
89.0
98.3
109.6
76.8
373.7
85.1
1.8
96.5
260.2
Transaction and other related
expenses (i)
—
1.1
—
6.3
7.4
—
—
0.1
6.4
Transformation expenses (ii)
—
(1.4)
0.2
10.3
9.1
4.2
3.2
5.7
23.4
Legal accrual/settlement (iii)
—
—
(1.5)
—
(1.5)
(10.3)
1.1
0.8
(8.4)
Goodwill impairment (iv)
—
—
—
—
—
—
64.0
—
64.0
Impairment of intangible assets (v)
—
—
—
—
—
—
40.4
—
40.4
Loss on extinguishment of debt
—
—
—
1.3
1.3
—
—
—
1.3
Tax receivable agreement
liability adjustment
—
—
—
0.7
0.7
—
—
—
0.7
Stock-based compensation (vi)
6.4
7.3
5.0
6.5
25.2
7.0
0.1
0.8
14.4
Adjusted EBITDA
$ 95.4
$ 105.3
$ 113.3
$ 101.9
$ 415.9
$ 86.0
$ 110.6
$ 103.9
$ 402.4
(i)
Transaction and other related expenses for the periods presented primarily related to deal costs incurred for potential acquisitions and debt modification costs related to the 2025 refinancing on our first lien term loan
(ii)
Transformation expenses for the 2026 periods consist of severance and other employee separation costs. Transformation expenses for the periods in 2025 primarily consist of expenses related to exit activities initiated during the fourth quarter in addition to a non-cash benefit in relation to a building lease for the full year.
(iii)
For the 2026 periods, this relates to a legal settlement finalized in the first quarter of 2026 in the form of cash and equity securities, adjustments related to the equity securities to remeasure to fair value at the end of the reporting periods, and directly associated legal costs incurred. For the periods in 2025 this item relates to adjustments to loss contingencies.
(iv)
This relates to the non-cash impairment of goodwill in our Parking Solutions segment further discussed above.
(v)
This relates to the non-cash impairment of intangible assets in our Parking Solutions segment further discussed above.
(vi)
Stock-based compensation represents the non-cash charge related to the issuance of awards under the Verra Mobility Corporation Amended and Restated 2018 Equity Incentive Plan.
Investor Relations Contact
Mark Zindler
[email protected]
VERRA MOBILITY CORP (VRRM - Free Report) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +38.46%. A quarter ago, it was expected that this company would post earnings of $0.33 per share when it actually produced earnings of $0.38, delivering a surprise of +15.15%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Verra Mobility, which belongs to the Zacks Internet - Software industry, posted revenues of $258.88 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 8.42%. This compares to year-ago revenues of $261.94 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Verra Mobility shares have lost about 85.1% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for Verra Mobility?While Verra Mobility has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Verra Mobility was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.25 on $235.08 million in revenues for the coming quarter and $1.13 on $961.03 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Sportradar Group AG (SRAD - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on November 3.
This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of +12.5%. The consensus EPS estimate for the quarter has been revised 7.1% lower over the last 30 days to the current level.
Sportradar Group AG's revenues are expected to be $403.9 million, up 18.3% from the year-ago quarter.
