Market Signal Briefing

Vancouver, British Columbia / November 25, 2025 ‑ TheNewswire - Harvest Gold Corporation (TSXV: HVG) (“Harvest Gold” or the “Company”) is pleased to announce the first series of assay results from its maiden drill program at its Mosseau property in the Urban Barry Belt in Quebec's Abitibi region. Rick Mark, President and CEO of Harvest Gold, states: “The discovery of a parallel 600m strike length horizon 100m to the east of the known lens at the Trench 1B target confirms that our drill plan to expand previously identified historical showings in the Northern Area is working. I would also note that our geology team is very encouraged with the style of the semi-massive mineralization that includes both precious and base metal mineralization. These first results represent approximately 20% of our 2025 drill program.”

WINCHESTER, Va.--(BUSINESS WIRE)--American Woodmark Corporation (NASDAQ: AMWD) (“American Woodmark,” “the Company,” “we,” “our,” or “us”) today announced results for its second fiscal quarter ended October 31, 2025.

“Demand trends remain challenged in both the new construction and remodel markets. Our teams are executing well despite the lower volumes and delivered Adjusted EBITDA margins of 10.0% for the second fiscal quarter,” said Scott Culbreth, President and CEO. “Actions have been put in place or are in process to mitigate tariff and lower demand impacts on the business, including structural cost reductions, supplier negotiations, alternative sourcing and price increases. We estimate the unmitigated tariff impact at the current rates, in effect as of today’s date, to represent approximately 4-4.5% of the Company’s annualized net sales with the impact varying by product category. This impact does not include the potential increase on Section 232 tariffs to 50%. The Company is also focused on closing the previously announced merger transaction with MasterBrand, Inc. so that we can provide a broader product portfolio across expanded channels, advance our innovation capabilities, and create exciting opportunities for team members.”

Second Quarter Results

Net sales for the second quarter of fiscal 2026 decreased $57.8 million, or 12.8%, to $394.6 million compared with the same quarter last fiscal year. Net income was $6.1 million ($0.42 per diluted share and 1.5% of net sales) compared with $27.7 million ($1.79 per diluted share and 6.1% of net sales) for the same quarter last fiscal year. Net income decreased $21.6 million due to the following: lower net sales, higher tariff and input costs, merger-related expenses, higher interest expense, and restructuring charges, net. These increases were partially offset by lower volume-based costs at our operating locations, lower incentive compensation, favorable mark-to-market adjustments on our foreign exchange forward contracts, and controlled discretionary spending across all locations and functions. Adjusted EPS per diluted share was $0.76 for the second quarter of fiscal 2026 compared with $2.08 for the same quarter last fiscal year. Adjusted EBITDA for the second quarter of fiscal 2026 decreased $20.6 million, or 34.1%, to $39.6 million, or 10.0% of net sales, compared with $60.2 million, or 13.3% of net sales, for the same quarter last fiscal year.

Fiscal Year to Date Results

Net sales for the first six months of fiscal 2026 decreased $113.9 million, or 12.5%, to $797.7 million compared with the same period last fiscal year. Net income was $20.7 million ($1.42 per diluted share and 2.6% of net sales) compared with $57.3 million ($3.68 per diluted share and 6.3% of net sales) for the same period last fiscal year. Net income decreased $36.6 million due to the following: lower net sales combined with an unfavorable mix shift towards value-based offerings, higher tariff and product input costs, increased Digital Transformation spending related to our ERP deployment strategy, merger-related expenses, higher interest expense, and restructuring charges, net. These increases were partially offset by lower volume-based costs at our operating locations, lower incentive compensation, favorable mark-to-market adjustments on our foreign exchange forward contracts, and controlled discretionary spending across all locations and functions. Adjusted EPS per diluted share was $1.77 for the first six months of fiscal 2026 compared with $4.22 for the same period last fiscal year. Adjusted EBITDA for the first six months of fiscal 2026 decreased $41.2 million, or 33.5%, to $81.9 million, or 10.3% of net sales, compared with $123.1 million, or 13.5% of net sales, for the same period last fiscal year.

In light of our pending merger with MasterBrand, Inc., previously announced on August 6, 2025, we will not be holding a conference call to discuss our second quarter of fiscal 2026 results and we will not be providing or updating previously issued financial guidance.

Balance Sheet & Cash Flow

As of October 31, 2025, the Company had $52.1 million in cash plus access to $315.2 million of additional availability under its revolving credit facility. Also, as of October 31, 2025, the Company had $195.0 million in term loan debt and $173.4 million drawn on its revolving credit facility and net leverage was 1.90.

Cash provided by operating activities for the first six months of fiscal 2026 was $44.3 million and free cash flow totaled $24.0 million. The Company repurchased 209,757 shares, or approximately 1.4% of shares outstanding, for $12.4 million during the first six months of fiscal 2026.

About American Woodmark

American Woodmark celebrates the creativity in all of us. With over 7,800 employees and more than a dozen brands, we’re one of the nation’s largest cabinet manufacturers. From inspiration to installation, we help people find their unique style and turn their home into a space for self-expression. By partnering with major home centers, builders, and independent dealers and distributors, we spark the imagination of homeowners and designers and bring their vision to life. Across our service and distribution centers, our corporate office, and manufacturing facilities, you’ll always find the same commitment to customer satisfaction, integrity, teamwork, and excellence. Visit americanwoodmark.com to learn more and start building something distinctly your own.

Use of Non-GAAP Financial Measures

We have presented certain financial measures in this press release which have not been prepared in accordance with U.S. generally accepted accounting principles (GAAP). Definitions of our non-GAAP financial measures and a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP are provided below following the financial highlights under the heading "Non-GAAP Financial Measures."

Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors that may be beyond the Company's control. Accordingly, actual outcomes and results may differ materially from those expressed or implied in any such forward looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

AMERICAN WOODMARK CORPORATION

Unaudited Financial Highlights

(in thousands, except share data)

Operating Results

Three Months Ended

Six Months Ended

October 31,

October 31,

2025

2024

2025

2024

Net sales

$

394,637

$

452,482

$

797,683

$

911,610

Cost of sales & distribution

334,734

366,771

670,290

733,033

Gross profit

59,903

85,711

127,393

178,577

Sales & marketing expense

21,728

21,738

45,291

46,075

General & administrative expense

24,368

20,237

47,281

41,739

Restructuring charges, net

1,458

1,133

2,280

1,133

Operating income

12,349

42,603

32,541

89,630

Interest expense, net

4,531

2,448

8,667

4,738

Other (income) expense, net

(1,079

)

4,702

(4,698

)

9,942

Income tax expense

2,800

7,767

7,880

17,631

Net income

$

6,097

$

27,686

$

20,692

$

57,319

Earnings Per Share:

Weighted average shares outstanding - diluted

14,622,814

15,435,311

14,601,845

15,557,210

Net income per diluted share

$

0.42

$

1.79

$

1.42

$

3.68

Condensed Consolidated Balance Sheet

(Unaudited)

October 31,

April 30,

2025

2025

Cash & cash equivalents

$

52,066

$

48,195

Customer receivables, net

104,191

111,171

Inventories

184,836

178,111

Income taxes receivable

4,986

2,567

Prepaid expenses and other

35,289

24,409

Total current assets

381,368

364,453

Property, plant and equipment, net

238,970

244,989

Operating lease right-of-use assets

116,877

128,907

Goodwill, net

767,612

767,612

Other long-term assets, net

61,024

64,608

Total assets

$

1,565,851

$

1,570,569

Current maturities of long-term debt

$

7,501

$

7,659

Short-term lease liability - operating

33,383

33,598

Accounts payable & accrued expenses

136,381

141,685

Total current liabilities

177,265

182,942

Long-term debt, less current maturities

363,284

365,825

Deferred income taxes

3,792

—

Long-term lease liability - operating

90,570

102,846

Other long-term liabilities

2,700

2,958

Total liabilities

637,611

654,571

Stockholders' equity

928,240

915,998

Total liabilities & stockholders' equity

$

1,565,851

$

1,570,569

Condensed Consolidated Statements of Cash Flows

(Unaudited)

Six Months Ended

October 31,

2025

2024

Net cash provided by operating activities

$

44,251

$

52,733

Net cash used by investing activities

(20,221

)

(22,587

)

Net cash used by financing activities

(20,159

)

(60,827

)

Net increase (decrease) in cash and cash equivalents

3,871

(30,681

)

Cash and cash equivalents, beginning of period

48,195

87,398

Cash and cash equivalents, end of period

$

52,066

$

56,717

Non-GAAP Financial Measures

We have reported our financial results in accordance with GAAP, and have discussed our financial results using the non-GAAP measures described below.

Management believes all of these non-GAAP financial measures provide an additional means of analyzing the current period's results against the corresponding prior period's results. However, these non-GAAP financial measures should be viewed in addition to, and not as a substitute for, the Company's reported results prepared in accordance with GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

EBITDA, Adjusted EBITDA and Adjusted EBITDA margin

We use EBITDA, Adjusted EBITDA and Adjusted EBITDA margin in evaluating the performance of our business, and we use each in the preparation of our annual operating budgets and as indicators of business performance and profitability. We believe EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin allow us to readily view operating trends, perform analytical comparisons and identify strategies to improve operating performance. Additionally, Adjusted EBITDA is a key measurement used in our Term Loans to determine interest rates and financial covenant compliance.

We define EBITDA as net income adjusted to exclude (1) income tax expense, (2) interest expense, net, and (3) depreciation and amortization expense. We define Adjusted EBITDA as EBITDA adjusted to exclude (1) expenses related to the pending merger with MasterBrand, Inc., (2) restructuring charges, net, (3) net gain/loss on debt modification, (4) stock-based compensation expense, (5) gain/loss on asset disposals, and (6) change in fair value of foreign exchange forward contracts. We believe Adjusted EBITDA, when presented in conjunction with comparable GAAP measures, is useful for investors because management uses Adjusted EBITDA in evaluating the performance of our business.

We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales.

Adjusted EPS per diluted share

We use Adjusted EPS per diluted share in evaluating the performance of our business and profitability. Management believes that this measure provides useful information to investors by offering additional ways of viewing the Company's results by providing an indication of performance and profitability excluding the impact of unusual and/or non-cash items. We define Adjusted EPS per diluted share as diluted earnings per share excluding the per share impact of (1) expenses related to the currently proposed merger with MasterBrand, (2) restructuring charges, net, (3) net gain/loss on debt modification, (4) change in fair value of foreign exchange forward contracts, and (5) the tax benefit of items (1) - (4).

Free cash flow

We use free cash flow to better understand cash flow trends in our business. We believe this measure gives investors an additional perspective on cash flow from operating activities in excess of amounts required for reinvestment. It also provides a measure of our ability to repay our debt obligations. We define free cash flow as net cash provided by operating activities less capital expenditures consisting of (1) cash payments to acquire property, plant and equipment and (2) cash investments in promotional displays.

Net leverage

Net leverage is a performance measure that we believe provides investors a more complete understanding of our leverage position and borrowing capacity after factoring in cash and cash equivalents that eventually could be used to repay outstanding debt.

We define net leverage as net debt (total debt less cash and cash equivalents) divided by the trailing-twelve months Adjusted EBITDA.

A reconciliation of these non-GAAP financial measures and the most directly comparable measures calculated and presented in accordance with GAAP are set forth on the following tables:

Reconciliation of EBITDA, Adjusted EBITDA and Adjusted EBITDA margin

Three Months Ended

Six Months Ended

October 31,

October 31,

(in thousands)

2025

2024

2025

2024

Net income (GAAP)

$

6,097

$

27,686

$

20,692

$

57,319

Add back:

Income tax expense

2,800

7,767

7,880

17,631

Interest expense, net

4,531

2,448

8,667

4,738

Depreciation and amortization expense

16,388

13,466

32,192

26,268

EBITDA (Non-GAAP)

$

29,816

$

51,367

$

69,431

$

105,956

Add back:

Merger related expenses (1)

6,484

—

9,285

—

Restructuring charges, net (2)

1,458

1,133

2,280

1,133

Net loss on debt modification

—

364

—

364

Change in fair value of foreign exchange forward contracts (3)

(1,058

)

4,375

(4,614

)

9,684

Stock-based compensation expense

2,627

2,864

4,887

5,805

Net loss on disposal of property, plant and equipment

315

84

609

142

Adjusted EBITDA (Non-GAAP)

$

39,642

$

60,187

$

81,878

$

123,084

Net Sales

$

394,637

$

452,482

$

797,683

$

911,610

Net income margin (GAAP)

1.5

%

6.1

%

2.6

%

6.3

%

Adjusted EBITDA margin (Non-GAAP)

10.0

%

13.3

%

10.3

%

13.5

%

 

(1) Merger-related expenses are comprised of expenses related to the pending merger with MasterBrand, Inc.

(2) Restructuring charges, net are comprised of expenses incurred related to the reduction in force implemented in the first and second quarters of fiscal 2026 in the U.S. and Mexico, the closure of the distribution facility located in Dallas, Texas, which was announced in August 2025, and the closure of the manufacturing facility located in Orange, Virginia, which was announced in January 2025.

(3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other (income) expense, net in the operating results.

Reconciliation of Net Income to Adjusted Net Income

Three Months Ended

Six Months Ended

October 31,

October 31,

(in thousands, except share data)

2025

2024

2025

2024

Net income (GAAP)

$

6,097

$

27,686

$

20,692

$

57,319

Add back:

Merger related expenses

6,484

—

9,285

—

Restructuring charges, net

1,458

1,133

2,280

1,133

Change in fair value of foreign exchange forward contracts

(1,058

)

4,375

(4,614

)

9,684

Tax benefit of add backs

(1,811

)

(1,510

)

(1,828

)

(2,874

)

Adjusted net income (Non-GAAP)

$

11,170

$

32,048

$

25,815

$

65,626

Weighted average diluted shares (GAAP)

14,622,814

15,435,311

14,601,845

15,557,210

EPS per diluted share (GAAP)

$

0.42

$

1.79

$

1.42

$

3.68

Adjusted EPS per diluted share (Non-GAAP)

$

0.76

$

2.08

$

1.77

$

4.22

Free Cash Flow

Six Months Ended

October 31,

2025

2024

Net cash provided by operating activities

$

44,251

$

52,733

Less: Capital expenditures (1)

20,237

22,592

Free cash flow

$

24,014

$

30,141

 

(1) Capital expenditures consist of cash payments to acquire property, plant and equipment and cash investments in promotional displays.

Net Leverage

Twelve Months Ended

October 31,

(in thousands)

2025

Net income (GAAP)

$

62,829

Add back:

Income tax expense

17,331

Interest expense, net

14,269

Depreciation and amortization expense

61,089

EBITDA (Non-GAAP)

$

155,518

Add back:

Merger related expenses (1)

9,285

Restructuring charges, net (2)

5,755

Net gain on debt modification

(374

)

Change in fair value of foreign exchange forward contracts (3)

(10,763

)

Stock-based compensation expense

7,071

Net loss on disposal of property, plant and equipment

929

Adjusted EBITDA (Non-GAAP)

$

167,421

As of

October 31,

2025

Current maturities of long-term debt

$

7,501

Long-term debt, less current maturities

363,284

Total debt

370,785

Less: Cash and cash equivalents

(52,066

)

Net debt

$

318,719

Net leverage (4)

1.90

 

(1) Merger-related expenses are comprised of expenses related to the pending merger with MasterBrand, Inc.

(2) Restructuring charges, net are comprised of expenses incurred related to the reduction in force implemented in the first and second quarters of fiscal 2026 in the U.S. and Mexico, the closure of the distribution facility located in Dallas, Texas, which was announced in August 2025, and the closure of the manufacturing facility located in Orange, Virginia, which was announced in January 2025.

(3) In the normal course of business the Company is subject to risk from adverse fluctuations in foreign exchange rates. The Company manages these risks through the use of foreign exchange forward contracts. The changes in the fair value of the forward contracts are recorded in other (income) expense, net in the operating results.

(4) Net debt divided by Adjusted EBITDA for the twelve months ended October 31, 2025.

AKRON, Ohio--(BUSINESS WIRE)--Babcock & Wilcox Enterprises, Inc., ("B&W" or the "Company") (NYSE: BW) a leader in energy technology and solutions, today announced that the Company is scheduled to participate in the 5th Annual B. Riley Convergence Conference: AI, Blockchain & Energy, which is being held on Thursday, December 4 at the Hotel Eventi in New York, N.Y.

B&W’s management team will host one-on-one meetings with investors during the conference. In addition, the conference will feature an analyst-led roundtable discussion, scheduled for 10 a.m. ET on December 4, led by Henry Hearle of B. Riley. This roundtable will take place at B&W’s one-on-one table and will be open for all investors to attend.

For additional information, to request an invitation, or to schedule a one-on-one meeting, please contact your B. Riley Securities representative or email [email protected].

About Babcock & Wilcox

Headquartered in Akron, Ohio, Babcock & Wilcox Enterprises, Inc. is a leader in energy and environmental products and services for power and industrial markets worldwide. Follow us on LinkedIn and learn more at babcock.com.

About B. Riley Securities

BRS provides a full suite of investment banking and capital markets services to corporations, financial sponsors, and institutional investors across all industry verticals. Services include initial, secondary, and follow-on offerings, institutional private placements, merger and acquisition (M&A) advisory, SPACs, corporate restructuring, and liability management. Widely recognized for its thematic proprietary equity research, clients benefit from the firm's extensive network, industry expertise, and proven execution capabilities through its end-to-end financial services platform. For more information, visit www.brileysecurities.com and follow us on LinkedIn.

More News From Babcock & Wilcox Enterprises, Inc.

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November 25, 2025 6:35 AM EST | Source: Ivanhoe Mines Ltd.
Initial 50 megawatts received at Kamoa-Kakula; expected to increase to 100 megawatts by Q1 2026 as grid improvements are completed, and 150 megawatts by 2027

Over 10 years of partnership between Ivanhoe Mines and Société Nationale d'Electricité (SNEL) in the refurbishment of 250 megawatts of renewable, hydropower capacity

Kolwezi, Democratic Republic of the Congo--(Newsfile Corp. - November 25, 2025) - Ivanhoe Mines (TSX: IVN) (OTCQX: IVPAF) Executive Co-Chair Robert Friedland and President and Chief Executive Officer Marna Cloete are delighted to announce that the first 50 megawatts (MW) of clean, hydroelectric power from the newly refurbished 178-MW Turbine #5 at the Inga II dam is now being received at the Kamoa-Kakula Copper Complex. The feed of hydroelectric power, from Inga II to Kamoa Kakula, is expected to increase to 100 MW in Q1 2026 and then increase to 150 MW as grid improvements are completed.

Watch the video summarizing over 10 years of partnership with the DRC state utility, SNEL, in refurbishment and return to operation of 250 MW of clean, hydropower capacity: https://vimeo.com/1140019977/45383e1c1d?fl=pl&fe=sh

Initial 50 megawatts of clean, hydropower delivered to Kamoa-Kakula from newly refurbished 178-megawatt Turbine #5 at Inga II

Installation of replacement mechanical and electrical equipment at Turbine #5 at the Inga II hydroelectric facility was completed in Q3 2025, followed by synchronization and energization of Turbine #5 in early Q4 2025. The newly refurbished Turbine #5 has since ramped up to full capacity, delivering approximately 180 MW of clean, hydroelectric power into the DRC grid. Of the 180 MW being delivered into the grid, Kamoa-Kakula is currently receiving an initial 50 MW, bringing its total domestically sourced power to approximately 110 MW, as shown in Table 1. Hydroelectric power delivery to Kamoa-Kakula, from Turbine #5, is expected to increase to 100 MW in Q1 2026 and to 150 MW thereafter as grid upgrades are completed.

The grid improvement initiatives primarily focus on upgrades to substations at Inga (SCI) and Kolwezi (SCK). The first upgrade, consisting of resistor banks at the Inga substation, was completed in May 2025. Corresponding resistor upgrades at the Kolwezi substation are expected to be completed imminently, improving voltage stability to Kamoa-Kakula. In addition, the static compensator at the Kolwezi substation is scheduled to be completed in early Q1 2026, increasing the power delivery from Inga II to the Kamoa-Kakula up to 100 MW. The remaining workstreams to upgrade the filter banks at SCI and SCK will occur in phases over the next 18 months, ultimately increasing the total power received from Turbine #5 to 150 MW during H1 2027. As shown in Figure 1, by the end of 2027, total domestically-sourced, renewable grid-supplied power is expected to be approximately 210 MW.

Table 1. Kamoa-Kakula's projected power supply and demand balance from 2025 to 2028.

  
Dec 25Dec 26Dec 27Dec 28TOTAL POWER DEMANDMW208271292347  

SNEL (national grid)MW110180210210Third-party purchases (Imports)MW100100100100On-site solarMW-606060TOTAL SUPPLIED POWERMW210340370370  

On-site backup generatorsMW178214214214

The Inga II hydroelectric facility consists of eight turbines, with the potential to generate up to 1.4 gigawatts of clean, hydroelectric power. Inga II is located on the Congo River, the second-largest river in the world by discharge. The refurbishment of Turbine #5 commenced in 2022.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3396/275861_ivanhoe1en.jpg

Representatives from DRC state-owned power utility, Société Nationale d'Electricité (SNEL), engineering and construction contractors Gruner Stucky AG and VOITH, and Kamoa Copper, standing on top of the recently refurbished Turbine #5, inside the turbine hall at the Inga II hydroelectric facility.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3396/275861_ivanhoe2en.jpg

(L-R) Kasper Badenhorst, Kamoa Copper, Construction Manager, and Papy Enona, Mechanical Engineer, Gruner Stucky AG, reviewing commissioning plans during the commissioning of Turbine #5

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3396/275861_f4e09cf124a06a25_005full.jpg

Qualified Persons

Disclosures of a scientific or technical nature at the Kamoa-Kakula Copper Complex in this news release have been reviewed and approved by Steve Amos, who is considered, by virtue of his education, experience, and professional association, a Qualified Person under the terms of NI 43-101. Mr. Amos is not considered independent under NI 43-101 as he is Ivanhoe Mines' Executive Vice President, Projects. Mr. Amos has verified the technical data disclosed in this news release.

Ivanhoe has prepared independent, NI 43-101-compliant technical report for the Kamoa-Kakula Copper Complex, which is available on the company's website and under the company's SEDAR+ profile at www.sedarplus.ca:

Kamoa-Kakula Integrated Development Plan 2023 Technical Report dated March 6, 2023, prepared by OreWin Pty Ltd.; China Nerin Engineering Co. Ltd.; DRA Global; Epoch Resources; Golder Associates Africa; Metso Outotec Oyj; Paterson and Cooke; SRK Consulting Ltd.; and The MSA Group. The technical reports includes relevant information regarding the assumptions, parameters, and methods of the mineral resource estimates on the power demand balance at the Kamoa-Kakula Copper Complex cited in this news release, as well as information regarding data verification, exploration procedures, and other matters relevant to the scientific and technical disclosure contained in this news release.

About Ivanhoe Mines

Ivanhoe Mines is a Canadian mining company focused on advancing its three principal operations in Southern Africa; the Kamoa-Kakula Copper Complex in the DRC, the ultra-high-grade Kipushi zinc-copper-germanium-silver mine, also in the DRC; and the tier-one Platreef platinum-palladium-nickel-rhodium-gold-copper mine in South Africa.

Ivanhoe Mines is exploring for copper in its highly prospective, 54-100% owned exploration licences in the Western Forelands, covering an area over six times larger than the adjacent Kamoa-Kakula Copper Complex, including the high-grade discoveries in the Makoko District. Ivanhoe is also exploring for new sedimentary copper discoveries in new horizons, including Angola, Kazakhstan, and Zambia.

Forward-looking statements

Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of applicable securities laws. Such statements and information involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance, or achievements of the company, its projects, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements or information. Such statements can be identified using words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate", "scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events, or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. These statements reflect the company's current expectations regarding future events, performance, and results and speak only as of the date of this release.

Such statements include, without limitation: (i) statements that hydroelectric power delivery from Turbine #5 is expected to increase to 100 MW in Q1 2026 and to 150 MW, by end of 2027, as grid upgrades are completed; and (ii) statements with respect to Kamoa-Kakula's projected power supply and demand balance from 2025 to 2028 as set out in Table 1.

Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indicators of whether such results will be achieved. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information, including, but not limited to those discussed above and under the "Risk Factors" section in the company's MD&A for the three and nine months ended September 30, 2025, and its current annual information form, and elsewhere in this news release, as well as unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; changes in the rate of water ingress into underground workings; the continuation of seismic activity; the state of underground infrastructure; delays in securing underground access; changes to the mining methods required in the future; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and support continued exploration, studies, development or operations.

Although the forward-looking statements contained in this news release are based upon what management of the company believes are reasonable assumptions, the company cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.

The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the factors outlined in the "Risk Factors" section in the company's MD&A for the three and nine months ended September 30, 2025, and its current annual information form.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/275861

Google trained its Gemini 3 large-language model on tensor processing units, which is a worry for Nvidia shareholders.

- Achieves $98 Million Cumulative Inventory Reduction in First Nine Months of Fiscal 2026 -

- Increases Inventory Reduction Target for Fiscal 2026 to $150 Million
(from $100+ Million Previously) -

- Updates Modeling Assumptions for Fiscal 2026 -

WEST FARGO, N.D., Nov. 25, 2025 (GLOBE NEWSWIRE) -- Titan Machinery Inc. (Nasdaq: TITN) ("Titan" or the "Company"), a leading network of full-service agricultural and construction equipment stores, today reported financial results for the fiscal third quarter ended October 31, 2025.

"Our third quarter results demonstrate continued progress on our inventory optimization initiatives, with cumulative inventory reductions of $98 million through the first nine months of the fiscal year, positioning us to increase our reduction target from $100 million up to $150 million for the full year fiscal 2026," stated Bryan Knutson, Titan's President and Chief Executive Officer. "Equipment margins beat expectations for the quarter driven by a more favorable sales mix and our improved inventory position, though we expect margins to moderate a bit in the fourth quarter as we look to continue our inventory optimization efforts. Additionally, as part of our broader footprint optimization strategy, we made select divestitures both domestically and in Germany, allowing us to focus our resources in markets where we can better leverage our operational expertise while delivering improved returns for our shareholders. Despite a challenging environment for the agriculture industry, our parts and service businesses continue to provide critical stability — keeping us closely engaged with our customers. We remain focused on positioning the business to emerge from this cycle stronger and better prepared for improved market conditions."

Fiscal 2026 Third Quarter Results

Consolidated Results

For the third quarter of fiscal 2026, revenue was $644.5 million compared to $679.8 million in the third quarter last year. Equipment revenue was $459.9 million for the third quarter of fiscal 2026, compared to $495.1 million in the third quarter last year. Parts revenue was $122.3 million for the third quarter of fiscal 2026, compared to $121.1 million in the third quarter last year. Service revenue was $48.9 million for the third quarter of fiscal 2026, compared to $51.1 million in the third quarter last year. Rental and other revenue was $13.3 million for the third quarter of fiscal 2026, compared to $12.5 million in the third quarter last year.

Gross profit for the third quarter of fiscal 2026 was $111.0 million, compared to $110.5 million in the third quarter last year. The Company's gross profit margin was 17.2% in the third quarter of fiscal 2026, compared to 16.3% in the third quarter last year. The third quarter of fiscal 2026 included a partial accrual for expected benefits related to manufacturer incentive plans of $3.7 million; there were no related accruals in the prior year comparative period.

Operating expenses were $100.5 million for the third quarter of fiscal 2026, compared to $98.8 million in the third quarter last year. Operating expense as a percentage of revenue was 15.6% for the third quarter of fiscal 2026, compared to 14.5% of revenue in the third quarter last year.

Floorplan interest expense and other interest expense was $10.9 million in the third quarter of fiscal 2026, compared to $14.3 million for the same period last year. Floorplan interest expense decreased in the third quarter of fiscal 2026 compared to the same period last year due to lower interest-bearing inventory levels.

In the third quarter of fiscal 2026, net income was $1.2 million, with earnings per diluted share of $0.05, compared to net income of $1.7 million, with earnings per diluted share of $0.07, for the same period last year.

EBITDA in the second quarter of fiscal 2026 was $23.4 million, compared to $24.7 million in the third quarter last year.

Segment Results

Agriculture Segment - Revenue for the third quarter of fiscal 2026 was $420.9 million, compared to $482.0 million in the third quarter last year, reflecting a same-store sales decrease of 12.3%. The revenue decrease resulted from a softening of demand for equipment, driven by lower commodity prices and sustained high interest rates, both of which are reducing farmer profitability. Pre-tax income for the third quarter of fiscal 2026 was $6.1 million, which includes the aforementioned $3.7 million accrual for benefits from manufacturer incentives, compared to $1.8 million of pre-tax income in the third quarter last year.

Construction Segment - Revenue for the third quarter of fiscal 2026 was $76.7 million, compared to $85.3 million in the third quarter last year, reflecting a same-store sales decrease of 10.1%. The decrease was driven by lower equipment sales. Pre-tax loss for the third quarter of fiscal 2026 was $1.7 million, compared to $0.9 million in the third quarter last year.

Europe Segment - Revenue for the third quarter of fiscal 2026 was $117.0 million, compared to $62.4 million in the third quarter last year, which includes a $6.1 million positive impact related to foreign currency fluctuations. Net of the effect of these foreign currency fluctuations, revenue increased $48.5 million, or 77.8%, largely driven by European Union stimulus programs in Romania. Pre-tax income for the third quarter of fiscal 2026 was $3.5 million, compared to pre-tax loss of $1.2 million in the third quarter last year.

Australia Segment - Revenue for the third quarter of fiscal 2026 was $29.9 million, compared to $50.1 million in the third quarter last year, which includes a $0.6 million negative impact related to foreign currency fluctuations. Net of the effect of these foreign currency fluctuations, revenue decreased $19.6 million or 39.1%. The decrease was driven by the normalization of sprayer deliveries in fiscal 2026 after having caught up on a multi-year backlog of deliveries during fiscal 2025. Pre-tax loss for the third quarter of fiscal 2026 was $3.8 million, compared to $0.3 million in the third quarter last year.

Balance Sheet and Cash Flow

Cash at the end of the third quarter of fiscal 2026 was $48.8 million. Total inventories decreased by $97.9 million to $1.0 billion as of third quarter end, as compared to January 31, 2025. Equipment inventories decreased by $96.9 million in the year-to-date period ended October 31, 2025. Outstanding floorplan payables were $739.6 million on $1.5 billion total available floorplan and working capital lines of credit as of October 31, 2025, compared to $755.7 million outstanding floorplan payables as of January 31, 2025.

For the nine months ended October 31, 2025, the Company's net cash provided by operating activities was $83.9 million, compared to net cash used for operating activities of $56.2 million for the nine months ended October 31, 2024. The change in cash from operating activities was primarily attributable to changes in inventory and a changing mix in floorplan financing, which was partially offset by a decrease in net income for the first nine months of fiscal 2026 compared to the prior year period.

Additional Management Commentary

Mr. Knutson continued, “Equipment margins in the third quarter were stronger than previously anticipated and this improvement has been reflected in our updated guidance. However, this improvement is being offset by an anticipated recognition of a non-cash valuation allowance that is expected to be recognized in the fourth quarter and result in an increase in our tax expense by approximately ($0.35) to ($0.45) per share, reflecting a variable that was not considered in our previous assumptions. We are also updating our segment revenue expectations to reflect year-to-date performance as we head into the final quarter of the fiscal year. This updated outlook reflects what we've been able to accomplish in a challenging demand environment, despite industry volumes below prior downturn levels. I am pleased that we've made significant progress on our inventory reduction initiatives as well as our footprint optimization, all of which position the business for improved performance as we move into fiscal 2027.”

Fiscal 2026 Modeling Assumptions

The following are the Company's current expectations for fiscal 2026 modeling assumptions:

  Previous Assumptions Current AssumptionsSegment Revenue (1)    Agriculture Down 15% - Down 20% Down 15% - Down 20%Construction Down 3% - Down 8% Down 5% - Down 10%Europe Up 30% - Up 40% Up 35% - Up 40%Australia Down 20% - Down 25% Down 20% - Down 25%     Adjusted Diluted Loss Per Share (2)(3) ($1.50) - ($2.00) ($1.50) - ($2.00)(1) Includes the full year impact of the Farmers Implement and Irrigation and Bellevue Machinery acquisitions, which closed in May 2025 and October 2025, respectively, which are partially offset by the divestitures of our Great Falls, Moses Lake, and Marshall, MO locations in August, September, and October 2025, respectfully.
(2) Includes the anticipated recognition of a non-cash valuation allowance on the Company's deferred tax assets within its Domestic business that was not previously forecasted, which is now expected to be recognized in the fourth quarter of fiscal 2026. The estimated impact is ($0.35) to ($0.45) per share and is not expected to be adjusted out of the Company's presentation of Adjusted Diluted Loss Per Share.
(3) Excludes an estimated loss on the Germany divestitures with an estimated impact of ($0.10) to ($0.15) per share. Conference Call and Presentation Information

The Company will host a conference call and audio webcast today at 7:30 a.m. Central time (8:30 a.m. Eastern time). Investors interested in participating in the live call can dial (877) 704-4453 from the U.S. International callers can dial (201) 389-0920. A telephone replay will be available approximately two hours after the call concludes and will be available through Tuesday, November 25, 2025, by dialing (844) 512-2921 from the U.S., or (412) 317-6671 from international locations, and entering confirmation code 13756235.

A copy of the presentation that will accompany the prepared remarks on the conference call is available on the Company’s website under Investor Relations at www.titanmachinery.com. An archive of the audio webcast will be available on the Company’s website under Investor Relations at www.titanmachinery.com for 30 days following the audio webcast.

Non-GAAP Financial Measures and Adjusted Diluted Earnings (Loss) per Share.

This press release and the attached financial tables contain a reconciliation of certain non-GAAP financial measures as defined under SEC rules. As required by Securities and Exchange Commission (“SEC”) rules, the Company has provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure in the schedule included in this press release, other than Adjusted Diluted Loss per Share for Fiscal 2026. The Company believes that non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide more information to assist investors in evaluating current period performance and in assessing future performance. For these reasons, internal management reporting also includes non-GAAP financial measures. Non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, the GAAP financial measures presented in this release and the Company's financial statements and other publicly filed reports. Non-GAAP financial measures presented in this release may not be comparable to similarly titled measures used by other companies. Investors are encouraged to review the reconciliations of any adjusted financial measures used in this release to their most directly comparable GAAP financial measures. The reconciliation is attached to this release. The table included in the Non-GAAP Reconciliations section reconcile EBITDA and adjusted EBITDA and Adjusted Diluted (Loss) Earnings per Share for the periods presented, to their respective most directly comparable GAAP financial measures. A reconciliation of Adjusted Diluted Loss Per Share for fiscal 2026 is not available without unreasonable effort due to the variability and low visibility of factors that may impact comparable GAAP measure.

About Titan Machinery Inc.

Titan Machinery Inc., founded in 1980 and headquartered in West Fargo, North Dakota, owns and operates a network of full service agricultural and construction equipment dealer locations in North America, Europe and Australia, servicing farmers, ranchers and commercial applicators. The network consists of US locations in Colorado, Idaho, Iowa, Kansas, Minnesota, Nebraska, North Dakota, South Dakota , Wisconsin and Wyoming. The international network includes European stores located in Bulgaria, Germany, Romania, and Ukraine and Australian stores located in New South Wales, South Australia, and Victoria in Southeastern Australia. Our stores represent one or more of the CNH Industrial Brands, including Case IH, New Holland Agriculture, Case Construction, New Holland Construction, and CNH Industrial Capital. Additional information about Titan Machinery Inc. can be found at www.titanmachinery.com.

Forward Looking Statements

Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “potential,” “believe,” “estimate,” “expect,” “intend,” “may,” “could,” “will,” “plan,” “anticipate,” and similar words and expressions are intended to identify forward-looking statements. These statements are based upon the current beliefs and expectations of our management. Forward-looking statements made in this release, which include statements regarding modeling assumptions and expected results of operations for the fiscal year ending January 31, 2026, statements regarding the Company's ability to reduce inventory levels and enhance profitability and the impact of recent divestitures, and may include statements regarding Agriculture, Construction, Europe and Australia segment initiatives and improvements, segment revenue realization, growth and profitability expectations, inventory availability and customer demand expectations, and agricultural and construction equipment industry conditions and trends, involve known and unknown risks and uncertainties that may cause Titan’s actual results in future periods to differ materially from the forecasted assumptions and expected results. These risks and uncertainties include, among other things, our ability to successfully integrate, and realize growth opportunities and synergies in connection with the O'Connors acquisition and the risk that we have assumed unforeseen or other liabilities in connection with the O'Connors acquisition. In addition, risks and uncertainties also include the impact of the Russia-Ukraine conflict on our Ukrainian operations, our substantial dependence on CNH Industrial including CNH Industrial's ability to design, manufacture and allocate inventory to our stores necessary to satisfy our customers' demands, supply chain disruptions impacting our suppliers, including CNH Industrial, the continued availability of organic growth and acquisition opportunities, potential difficulties integrating acquired stores, industry supply levels, fluctuating agriculture and construction industry economic conditions, the success of recently implemented initiatives within the Company’s operating segments, the uncertainty and fluctuating conditions in the capital and credit markets, difficulties in conducting international operations, foreign currency risks, governmental agriculture policies, seasonal fluctuations, the ability of the Company to manage inventory levels, weather conditions, disruption in receiving sufficient inventory financing, and increased competition in the geographic areas served. These and other risks are described in Titan’s filings with the SEC. Titan conducts its business in a highly competitive and rapidly changing environment. Accordingly, new risks and uncertainties may arise. It is not possible for management to predict all such risks and uncertainties, nor to assess the impact of all such risks and uncertainties on Titan’s business or the extent to which any individual risk or uncertainty, or combination of risks and uncertainties, may cause results to differ materially from those contained in any forward-looking statement. Other than as required by law, Titan disclaims any obligation to update such risks and uncertainties or to publicly announce revisions to any of the forward-looking statements contained in this release to reflect future events or developments.

Investor Relations Contact:

ICR, Inc.
Jeff Sonnek, [email protected]
646-277-1263

TITAN MACHINERY INC.Consolidated Condensed Balance Sheets(in thousands)(Unaudited)     October 31, 2025 January 31, 2025Assets   Current Assets   Cash$48,790 $35,898 Receivables, net of allowance for expected credit losses 146,732  119,814 Inventories, net 1,010,734  1,108,672 Prepaid expenses and other 21,844  28,244 Total current assets 1,228,100  1,292,628 Noncurrent Assets   Property and equipment, net of accumulated depreciation 371,657  379,690 Operating lease assets 47,674  27,935 Deferred income taxes 8,901  2,552 Goodwill 63,906  61,246 Intangible assets, net of accumulated amortization 48,448  48,306 Other 674  1,581 Total noncurrent assets 541,260  521,310 Total Assets$1,769,360 $1,813,938     Liabilities and Stockholders' Equity   Current Liabilities   Accounts payable$46,290 $37,166 Floorplan payable 739,617  755,698 Current maturities of long-term debt 21,804  10,920 Current operating lease liabilities 4,207  5,747 Deferred revenue 24,130  91,933 Accrued expenses and other 68,007  59,492 Total current liabilities 904,055  960,956 Long-Term Liabilities   Long-term debt, less current maturities 154,780  157,767 Operating lease liabilities 45,799  25,588 Finance lease liabilities 39,642  44,894 Deferred income taxes 7,380  8,818 Other long-term liabilities 5,078  1,838 Total long-term liabilities 252,679  238,905 Stockholders' Equity   Common stock —  — Additional paid-in-capital 265,608  262,097 Retained earnings 342,308  360,314 Accumulated other comprehensive income (loss) 4,710  (8,334)Total stockholders' equity 612,626  614,077 Total Liabilities and Stockholders' Equity$1,769,360 $1,813,938  TITAN MACHINERY INC.Consolidated Condensed Statements of Operations(in thousands, except per share data)(Unaudited)         Three Months Ended October 31, Nine Months Ended October 31, 2025
 2024
 2025
 2024
Revenue       Equipment$459,912  $495,147  $1,273,014  $1,428,469 Parts 122,342   121,086   337,193   339,118 Service 48,944   51,122   141,761   143,468 Rental and other 13,312   12,469   33,305   31,145 Total Revenue 644,510   679,824   1,785,273   1,942,200 Cost of Revenue       Equipment 422,448   458,345   1,181,203   1,292,821 Parts 83,564   83,542   231,217   230,932 Service 17,678   17,833   51,767   50,753 Rental and other 9,804   9,610   25,489   23,068 Total Cost of Revenue 533,494   569,330   1,489,676   1,597,574 Gross Profit 111,016   110,494   295,597   344,626 Operating Expenses 100,474   98,773   289,539   293,087 Impairment of Goodwill —   —   —   531 Impairment of Intangible and Long-Lived Assets 238   264   827   1,206 Income (Loss) from Operations 10,304   11,457   5,231   49,802 Other Income (Expense)       Interest and other income (expense) 3,442   3,097   5,591   (4,239)Floorplan interest expense (6,183)  (9,993)  (19,521)  (26,275)Other interest expense (4,755)  (4,286)  (14,011)  (10,479)Income (Loss) Before Income Taxes 2,808   275   (22,710)  8,809 Provision (Benefit) for Income Taxes 1,610   (1,438)  (4,704)  1,959 Net Income (Loss)$1,198  $1,713  $(18,006) $6,850         Diluted Earnings (Loss) per Share$0.05  $0.07  $(0.79) $0.30 Diluted Weighted Average Common Shares 22,780   22,631   22,737   22,599  TITAN MACHINERY INC.Consolidated Condensed Statements of Cash Flows(in thousands)(Unaudited)     Nine Months Ended October 31, 2025
 2024
Operating Activities   Net (loss) income$(18,006) $6,850 Adjustments to reconcile net (loss) income to net cash provided by operating activities   Depreciation and amortization 28,175   28,687 Impairment 827   1,737 Sale-leaseback financing expense —   11,159 Other, net (6,996)  2,429 Changes in assets and liabilities, net of effects of acquisitions   Inventories 120,020   (114,485)Manufacturer floorplan payable 24,819   78,714 Receivables (19,044)  12,541 Other working capital (45,911)  (83,827)Net Cash Provided by (Used for) Operating Activities 83,884   (56,195)Investing Activities   Property and equipment purchases (18,389)  (30,798)Proceeds from sale of property and equipment 4,777   1,490 Acquisition consideration, net of cash acquired (13,370)  (260)Proceeds from business divestitures, net 9,143   — Other, net 813   129 Net Cash Used for Investing Activities (17,026)  (29,439)Financing Activities   Net change in non-manufacturer floorplan payable (56,213)  77,990 Net proceeds/(payments) from long-term debt and finance leases 1,259   (2,308)Other, net (776)  (4,714)Net Cash (Used for) Provided by Financing Activities (55,730)  70,968 Effect of Exchange Rate Changes on Cash 1,764   20 Net Change in Cash 12,892   (14,646)Cash at Beginning of Period 35,898   38,066 Cash at End of Period$48,790  $23,420  TITAN MACHINERY INC.Segment Results(in thousands)(Unaudited)     Three Months Ended October 31, Nine Months Ended October 31, 2025
 2024
 % Change 2025
 2024
 % ChangeRevenue           Agriculture$420,941  $482,022  (12.7)% $1,151,082  $1,353,744  (15.0)%Construction 76,701   85,285  (10.1)%  220,817   236,971  (6.8)%Europe 117,012   62,382  87.6%  308,987   195,633  57.9%Australia 29,856   50,135  (40.4)%  104,387   155,852  (33.0)%Total$644,510  $679,824  (5.2)% $1,785,273  $1,942,200  (8.1)%            Income (Loss) Before Income Taxes           Agriculture$6,109  $1,846  230.9% $(18,966) $15,556  (221.9)%Construction (1,715)  (941) 82.3%  (7,110)  (5,566) 27.7%Europe 3,516   (1,195) n/m   13,373   (2,115) n/m Australia (3,770)  (298) n/m   (6,438)  578  n/m Segment Income (Loss) Before Income Taxes 4,140   (588) n/m   (19,141)  8,453  n/m Shared Resources (1,332)  863  n/m   (3,569)  356  n/m Total$2,808  $275  n/m  $(22,710) $8,809  n/m *n/m = not meaningful            TITAN MACHINERY INC.Non-GAAP Reconciliations(in thousands, except per share data)(Unaudited)           Three Months Ended October 31, Nine Months Ended October 31,  2025
 2024
 2025
 2024
Adjusted Diluted Earnings (Loss) Per Share        Diluted Earnings (Loss) Per Share $0.05  $0.07  $(0.79) $0.30 Adjustments        Impact of sale-leaseback financing expense (1)  —   —   —   0.48 Total Pre-Tax Adjustments  —   —   —   0.48 Less: Tax Effect of Adjustments (2)  —   —   —   (0.12)Total Adjustments  —   —   —   0.36 Adjusted Diluted Earnings (Loss) Per Share $0.05  $0.07  $(0.79) $0.66          EBITDA        Net Income (Loss) $1,198  $1,713  $(18,006) $6,850 Adjustments        Interest expense, net of interest income  4,531   4,139   13,365   10,119 Floorplan interest expense  6,183   9,993   19,521   26,275 Provision (Benefit) for Income Taxes  1,610   (1,438)  (4,704)  1,959 Depreciation and amortization  9,846   10,274   28,175   28,687 EBITDA  23,368   24,681   38,351   73,890 Adjustments        Floorplan interest expense  (6,183)  (9,993)  (19,521)  (26,275)Impact of sale-leaseback financing expense (1)  —   —   —   11,159 Total Adjustments  (6,183)  (9,993)  (19,521)  (15,116)Adjusted EBITDA $17,185  $14,688  $18,830  $58,774 (1) Accounting impact of a non-cash, sale-leaseback financing expense related to the Company's umbrella purchase for 13 of its leased facilities.(2) The tax effect of U.S. related adjustments was calculated using a 25.5% tax rate, determined based on a 21% federal statutory rate and a 4.5% blended state income tax rate.

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November 25, 2025 06:50 ET

 | Source:

ANI Pharmaceuticals, Inc.

PRINCETON, N.J., Nov. 25, 2025 (GLOBE NEWSWIRE) -- ANI Pharmaceuticals, Inc. (ANI or the Company) (Nasdaq: ANIP) today announced that Nikhil Lalwani, Chief Executive Officer, will participate in a fireside chat at the Piper Sandler 37th Annual Healthcare Conference on Tuesday, December 2, at 2:00 p.m. ET.

The live and archived fireside chat will be accessible from the Company’s website at www.anipharmaceuticals.com, under the Investors section under Events and Presentations. The replay of the webcast will be accessible for 90 days.

About ANI
ANI Pharmaceuticals, Inc. (Nasdaq: ANIP) is a diversified biopharmaceutical company committed to its mission of “Serving Patients, Improving Lives" by developing, manufacturing, and commercializing innovative and high-quality therapeutics. The Company is focused on delivering sustainable growth through its Rare Disease business, which markets novel products in the areas of ophthalmology, rheumatology, nephrology, neurology, and pulmonology; its Generics business, which leverages R&D expertise, operational excellence, and U.S.-based manufacturing; and its Brands business. For more information, visit www.anipharmaceuticals.com.

Investor Relations:
Courtney Mogerley, Argot Partners
T: 646-368-8014
E: [email protected]

Quarterly Total Revenues Reached RMB21,793.9 million (US$3,061.4 million)i

Quarterly Vehicle Deliveries were 87,071 units

SHANGHAI, Nov. 25, 2025 (GLOBE NEWSWIRE) -- NIO Inc. (NYSE: NIO; HKEX: 9866; SGX: NIO) (“NIO” or the “Company”), a pioneer and a leading company in the global smart electric vehicle market, today announced its unaudited financial results for the third quarter ended September 30, 2025.

Operating Highlights for the Third Quarter of 2025

Vehicle deliveries were 87,071 in the third quarter of 2025, representing an increase of 40.8% from the third quarter of 2024, and an increase of 20.8% from the second quarter of 2025. The deliveries consisted of 36,928 vehicles from the Company’s premium smart electric vehicle brand NIO, 37,656 vehicles from the Company’s family-oriented smart electric vehicle brand ONVO, and 12,487 vehicles from the Company’s small smart high-end electric car brand FIREFLY. Key Operating Results  2025 Q32025 Q22025 Q12024 Q4Deliveries87,07172,05642,09472,689      2024 Q32024 Q22024 Q12023 Q4Deliveries61,85557,37330,05350,045      Financial Highlights for the Third Quarter of 2025

Vehicle sales were RMB19,202.3 million (US$2,697.3 million) in the third quarter of 2025, representing an increase of 15.0% from the third quarter of 2024 and an increase of 19.0% from the second quarter of 2025.Vehicle marginii was 14.7% in the third quarter of 2025, compared with 13.1% in the third quarter of 2024 and 10.3% in the second quarter of 2025.Total revenues were RMB21,793.9 million (US$3,061.4 million) in the third quarter of 2025, representing an increase of 16.7% from the third quarter of 2024 and an increase of 14.7% from the second quarter of 2025.Gross profit was RMB3,024.6 million (US$424.9 million) in the third quarter of 2025, representing an increase of 50.7% from the third quarter of 2024 and an increase of 59.4% from the second quarter of 2025.Gross margin was 13.9% in the third quarter of 2025, compared with 10.7% in the third quarter of 2024 and 10.0% in the second quarter of 2025.Loss from operations was RMB3,521.5 million (US$494.7 million) in the third quarter of 2025, representing a decrease of 32.8% from the third quarter of 2024 and a decrease of 28.3% from the second quarter of 2025. Excluding share-based compensation expenses and organizational optimization charges, adjusted loss from operations (non-GAAP) was RMB2,776.1 million (US$390.0 million) in the third quarter of 2025, representing a decrease of 39.5% from the third quarter of 2024 and a decrease of 31.3% from the second quarter of 2025.Net loss was RMB3,480.5 million (US$488.9 million) in the third quarter of 2025, representing a decrease of 31.2% from the third quarter of 2024 and a decrease of 30.3% from the second quarter of 2025. Excluding share-based compensation expenses and organizational optimization charges, adjusted net loss (non-GAAP) was RMB2,735.1 million (US$384.2 million) in the third quarter of 2025, representing a decrease of 38.0% from the third quarter of 2024 and a decrease of 33.7% from the second quarter of 2025.Cash and cash equivalents, restricted cash, short-term investment and long-term time deposits were RMB36.7 billion (US$5.1 billion) as of September 30, 2025. Key Financial Results for the Third Quarter of 2025(in RMB million, except for percentage) 2025 Q32025 Q2 2024 Q3 % Changeiii      QoQYoYVehicle Sales19,202.3 16,136.1  16,697.6  19.0% 15.0% Vehicle Margin14.7% 10.3%  13.1%  440bp 160bp         Total Revenues21,793.9 19,008.7  18,673.5  14.7% 16.7% Gross Profit3,024.6 1,897.5  2,007.4  59.4% 50.7% Gross Margin13.9% 10.0%  10.7%  390bp 320bp         Loss from Operations(3,521.5) (4,908.9)  (5,237.8)  -28.3% -32.8% Adjusted Loss from Operations (non-GAAP)(2,776.1) (4,040.8)  (4,590.7)  -31.3% -39.5%         Net Loss(3,480.5) (4,994.8)  (5,059.7)  -30.3% -31.2% Adjusted Net Loss (non-GAAP)(2,735.1) (4,126.7)  (4,412.6)  -33.7% -38.0%               Recent Developments

Deliveries in October 2025

The Company delivered 40,397 vehicles in October 2025. As of October 31, 2025, the Company had delivered 241,618 vehicles in 2025, with cumulative deliveries reaching 913,182. Completion of Equity Offering

On September 17, 2025, the Company completed its US$1.16 billion registered offering relating to a total of 209,090,918 Class A ordinary shares, which consisted of an offering of American depositary shares, each representing one Class A ordinary share, and an offering of Class A ordinary shares. Share Issuance for Share Incentive Plans

On October 22, 2025, the Company issued 55,000,000 Class A ordinary shares to Deutsche Bank Trust Company Americas, the depositary of the Company’s ADS program, to facilitate future exercise of options and other share incentive awards under the share incentive plans of the Company. CEO and CFO Comments

“In the third quarter of 2025, the Company delivered 87,071 smart electric vehicles, representing a year-over-year increase of 40.8%. The strong momentum was driven by the all-around competitiveness of our NIO, ONVO, and FIREFLY brand offerings, which continue to resonate with users across their respective market segments,” said William Bin Li, founder, chairman, and chief executive officer of NIO. “We are working closely with supply chain partners to ramp up production and expect total deliveries in the fourth quarter to reach between 120,000 and 125,000 units, reflecting a year-on-year increase of 65.1% to 72.0% and setting a new quarterly record.”

"The All-New NIO ES8 has set the fastest record for delivering over 10,000 units among BEVs priced above RMB400,000 in China, while the ONVO L90 has remained the top-selling large BEV SUV for three consecutive months, and FIREFLY has quickly secured a leading position in the small smart high-end electric car market since its first deliveries. Underpinned by our core smart EV technologies, a complementary multi-brand product portfolio, a comprehensive and convenient battery swapping and charging network, as well as a vibrant and growing user community, the Company has entered a new cycle of accelerated growth,” added William Bin Li.

“Through continuous cost optimization and a greater contribution from higher-margin vehicle deliveries, our vehicle gross margin sequentially improved to 14.7% in Q3 2025, and the overall gross margin reached the highest level in the past three years, underscoring the enhanced profitability of our products and services,” added Stanley Yu Qu, NIO’s chief financial officer. “Our continued efforts on operational efficiency improvement across R&D, sales and service also drove a quarter-on-quarter reduction of over 30% in non-GAAP operating losses, continuing the positive trend from the first half of 2025. Furthermore, the business generated positive operating cash flow and positive results of operating cashflow net off the capital expenditures during the quarter. Bolstered further by the US$1.16 billion equity offering, our strengthened balance sheet provides a solid foundation for the path toward sustained, long-term growth.”

Financial Results for the Third Quarter of 2025

Revenues

Total revenues in the third quarter of 2025 were RMB21,793.9 million (US$3,061.4 million), representing an increase of 16.7% from the third quarter of 2024 and an increase of 14.7% from the second quarter of 2025.Vehicle sales in the third quarter of 2025 were RMB19,202.3 million (US$2,697.3 million), representing an increase of 15.0% from the third quarter of 2024 and an increase of 19.0% from the second quarter of 2025. The increase in vehicle sales over the third quarter of 2024 was mainly due to an increase in delivery volume, partially offset by the lower average selling price as a result of changes in product mix. The increase in vehicle sales over the second quarter of 2025 was mainly attributable to an increase in delivery volume.Other sales in the third quarter of 2025 were RMB2,591.6 million (US$364.0 million), representing an increase of 31.2% from the third quarter of 2024 and a decrease of 9.8% from the second quarter of 2025. The increase in other sales over the third quarter of 2024 was mainly due to i) the increase in revenues from sales of used cars and technical research and development services, and ii) the increase in sales of parts, accessories and after-sales vehicle services as a result of the continued growth in the number of users. The decrease in other sales over the second quarter of 2025 was mainly due to the decrease in revenues from sales of used cars and technical research and development services, partially offset by the increase in sales of parts, accessories and after-sales vehicle services, and provision of power solutions, as a result of the continued growth in the number of users. Cost of Sales and Gross Margin

Cost of sales in the third quarter of 2025 was RMB18,769.3 million (US$2,636.5 million), representing an increase of 12.6% from the third quarter of 2024 and an increase of 9.7% from the second quarter of 2025. The increase in cost of sales over the third quarter of 2024 and the second quarter of 2025 was mainly attributable to the increased delivery volume, partially offset by the decreased material cost per vehicle.
Gross profit in the third quarter of 2025 was RMB3,024.6 million (US$424.9 million), representing an increase of 50.7% from the third quarter of 2024 and an increase of 59.4% from the second quarter of 2025.Gross margin in the third quarter of 2025 was 13.9%, compared with 10.7% in the third quarter of 2024 and 10.0% in the second quarter of 2025. The increase in gross margin over the third quarter of 2024 was mainly attributable to the i) increased vehicle margin, and ii) the increase in the gross margin of sales of parts, accessories and after-sales vehicle services as a result of cost reduction and efficiency improvement. The increase in gross margin over the second quarter of 2025 was mainly attributable to the increased vehicle margin.Vehicle margin in the third quarter of 2025 was 14.7%, compared with 13.1% in the third quarter of 2024 and 10.3% in the second quarter of 2025. The increase in vehicle margin from the third quarter of 2024 and the second quarter of 2025 was mainly attributable to decreased material cost per unit, which is primarily driven by the Company’s comprehensive cost reduction efforts. Operating Expenses

Research and development expenses in the third quarter of 2025 were RMB2,390.6 million (US$335.8 million), representing a decrease of 28.0% from the third quarter of 2024 and a decrease of 20.5% from the second quarter of 2025. Excluding share-based compensation expenses and organizational optimization charges, research and development expenses (non-GAAP) were RMB1,938.9 million (US$272.4 million), representing a decrease of 33.2% from the third quarter of 2024 and a decrease of 22.1% from the second quarter of 2025. The decrease in research and development expenses over the third quarter of 2024 and the second quarter of 2025 was mainly due to the decreased personnel costs in research and development functions primarily as a result of organizational optimization, and the decreased design and development costs resulting from different stages of development for new products and technologies.Selling, general and administrative expenses in the third quarter of 2025 were RMB4,184.7 million (US$587.8 million), representing an increase of 1.8% from the third quarter of 2024 and an increase of 5.5% from the second quarter of 2025. Excluding share-based compensation expenses and organizational optimization charges, selling, general and administrative expenses (non-GAAP) were RMB3,933.1 million (US$552.5 million), representing an increase of 0.8% from the third quarter of 2024 and an increase of 6.8% from the second quarter of 2025. Selling, general and administrative expenses remained relatively stable compared with the third quarter of 2024. The increase in selling, general and administrative expenses over the second quarter of 2025 was mainly attributable to the increase in sales and marketing activities associated with new product launches. Loss from Operations

Loss from operations in the third quarter of 2025 was RMB3,521.5 million (US$494.7 million), representing a decrease of 32.8% from the third quarter of 2024 and a decrease of 28.3% from the second quarter of 2025. Excluding share-based compensation expenses and organizational optimization charges, adjusted loss from operations (non-GAAP) was RMB2,776.1 million (US$390.0 million) in the third quarter of 2025, representing a decrease of 39.5% from the third quarter of 2024 and a decrease of 31.3% from second quarter of 2025. Net Loss and Earnings Per Share/ADS

Net loss in the third quarter of 2025 was RMB3,480.5 million (US$488.9 million), representing a decrease of 31.2% from the third quarter of 2024 and a decrease of 30.3% from the second quarter of 2025. Excluding share-based compensation expenses and organizational optimization charges, adjusted net loss (non-GAAP) was RMB2,735.1 million (US$384.2 million) in the third quarter of 2025, representing a decrease of 38.0% from the third quarter of 2024 and a decrease of 33.7% from the second quarter of 2025. Net loss attributable to NIO’s ordinary shareholders in the third quarter of 2025 was RMB3,660.8 million (US$514.2 million), representing a decrease of 28.8% from the third quarter of 2024 and a decrease of 28.8% from the second quarter of 2025. Excluding share-based compensation expenses, organizational optimization charges and accretion on redeemable non-controlling interests to redemption value, adjusted net loss attributable to NIO’s ordinary shareholders (non-GAAP) was RMB2,760.0 million (US$387.7 million) in the third quarter of 2025. Basic and diluted net loss per ordinary share/ADS in the third quarter of 2025 were both RMB1.51 (US$0.21), compared with RMB2.50 in the third quarter of 2024 and RMB2.31 in the second quarter of 2025. Excluding share-based compensation expenses, organizational optimization charges and accretion on redeemable non-controlling interests to redemption value, adjusted basic and diluted net loss per share/ADS (non-GAAP) were both RMB1.14 (US$0.15), compared with RMB2.14 in the third quarter of 2024 and RMB1.85 in the second quarter of 2025. Balance Sheet

Balance of cash and cash equivalents, restricted cash, short-term investment and long-term time deposits was RMB36.7 billion (US$5.1 billion) as of September 30, 2025. We have been incurring loss since inception. Although we generated positive operating cash flows for the third quarter ended September 30, 2025, we had negative operating cash flows in the first two quarters of 2025 and our current liabilities exceeded current assets as of September 30, 2025. Based on our going concern and liquidity assessment, which considers our business plan including revenue growth from the sales of existing and new vehicle models, continuous optimization of operation efficiency to improve operating cash flows, working capital management, the ability to raise funds from banks under available credit quotas and other sources when needed, and uncertainties as to the successful execution of our business plan, we believe that our financial resources, including our available cash and cash equivalents, restricted cash and short-term investments, cash generated from operating activities and funds from available credit quotas and other sources will be sufficient to support our continuous operations in the ordinary course of business for the next twelve months. Business Outlook

For the fourth quarter of 2025, the Company expects:

Deliveries of vehicles to be between 120,000 and 125,000 vehicles, representing an increase of approximately 65.1% to 72.0% from the same quarter of 2024.Total revenues to be between RMB32,758 million (US$4,602 million) and RMB34,039 million (US$4,781 million), representing an increase of approximately 66.3% to 72.8% from the same quarter of 2024. This business outlook reflects the Company’s current and preliminary view on the business situation and market condition, which is subject to change.

Conference Call

The Company’s management will host an earnings conference call at 7:00 AM U.S. Eastern Time on November 25, 2025 (8:00 PM Beijing/Hong Kong/Singapore Time on November 25, 2025).

A live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.nio.com/news-events/events.

For participants who wish to join the conference using dial-in numbers, please register in advance using the link provided below and dial in 10 minutes prior to the call. Dial-in numbers, passcode and unique access PIN would be provided upon registering.

https://s1.c-conf.com/diamondpass/10051455-lh4ms9.html

A replay of the conference call will be accessible by phone at the following numbers, until December 2, 2025:

United States:+1-855-883-1031Hong Kong, China:+852-800-930-639Mainland, China:+86-400-1209-216Singapore:+65-800-1013-223International:+61-7-3107-6325Replay PIN:10051455   About NIO Inc.

NIO Inc. is a pioneer and a leading company in the global smart electric vehicle market. Founded in November 2014, NIO aspires to shape a sustainable and brighter future with the mission of “Blue Sky Coming.” NIO envisions itself as a user enterprise where innovative technology meets experience excellence. NIO designs, develops, manufactures and sells smart electric vehicles, driving innovations in next-generation core technologies. NIO distinguishes itself through continuous technological breakthroughs and innovations, exceptional products and services, and a community for shared growth. NIO provides premium smart electric vehicles under the NIO brand, family-oriented smart electric vehicles through the ONVO brand, and small smart high-end electric cars with the FIREFLY brand.

Safe Harbor Statement

This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. NIO may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in announcements, circulars or other publications made on the websites of each of The Stock Exchange of Hong Kong Limited (the “SEHK”) and the Singapore Exchange Securities Trading Limited (the “SGX-ST”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about NIO’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: NIO’s strategies; NIO’s future business development, financial condition and results of operations; NIO’s ability to develop and manufacture vehicles of sufficient quality and appeal to customers on schedule and on a large scale; its ability to ensure and expand manufacturing capacities including establishing and maintaining partnerships with third parties; its ability to provide convenient and comprehensive power solutions to its customers; the viability, growth potential and prospects of the battery swapping, BaaS, and NIO Assisted and Intelligent Driving and its subscription services; its ability to improve the technologies or develop alternative technologies in meeting evolving market demand and industry development; NIO’s ability to satisfy the mandated safety standards relating to motor vehicles; its ability to secure supply of raw materials or other components used in its vehicles; its ability to secure sufficient reservations and sales of its vehicles; its ability to control costs associated with its operations; its ability to build its current and future brands; general economic and business conditions globally and in China and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in NIO’s filings with the SEC and the announcements and filings on the websites of each of the SEHK and SGX-ST. All information provided in this press release is as of the date of this press release, and NIO does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Non-GAAP Disclosure

The Company uses non-GAAP measures, such as adjusted cost of sales (non-GAAP), adjusted research and development expenses (non-GAAP), adjusted selling, general and administrative expenses (non-GAAP), adjusted loss from operations (non-GAAP), adjusted net loss (non-GAAP), adjusted net loss attributable to ordinary shareholders (non-GAAP) and adjusted basic and diluted net loss per share/ADS (non-GAAP), in evaluating its operating results and for financial and operational decision-making purposes. The Company defines adjusted cost of sales (non-GAAP), adjusted research and development expenses (non-GAAP), adjusted selling, general and administrative expenses (non-GAAP) and adjusted loss from operations (non-GAAP) and adjusted net loss (non-GAAP) as cost of sales, research and development expenses, selling, general and administrative expenses, loss from operations and net loss excluding share-based compensation expenses and organizational optimization charges. The Company defines adjusted net loss attributable to ordinary shareholders (non-GAAP), adjusted basic and diluted net loss per share/ADS (non-GAAP) as net loss attributable to ordinary shareholders and basic and diluted net loss per share/ADS excluding share-based compensation expenses, organizational optimization charges and accretion on redeemable non-controlling interests to redemption value. By excluding the impact of share-based compensation expenses, organizational optimization charges and accretion on redeemable non-controlling interests to redemption value, which are either non-cash or not indicative of the Company’s ordinary or ongoing operations due to their size or nature, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making.

The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.

The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance.

For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

Exchange Rate

This announcement contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from Renminbi to U.S. dollars were made at the rate of RMB7.1190 to US$1.00, the noon buying rate in effect on September 30, 2025 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.

For more information, please visit: http://ir.nio.com.

Investor Relations
[email protected]
Media Relations
[email protected]

Source: NIO

NIO INC.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands)

 As of December 31, 2024September 30, 2025September 30, 2025 RMBRMBUS$ASSETS   Current assets:   Cash and cash equivalents19,328,9209,270,8231,302,265Restricted cash8,320,72812,447,7861,748,530Short-term investments14,137,56614,835,3362,083,907Trade and notes receivables1,676,2461,304,186183,198Amounts due from related parties7,702,40413,248,3241,860,981Inventory7,087,2237,477,6821,050,384Prepayments and other current assets3,632,9564,475,189628,626Total current assets61,886,04363,059,3268,857,891Non-current assets:   Long-term restricted cash97,72092,10512,938Property, plant and equipment, net.25,892,90426,771,7983,760,612Intangible assets, net29,64829,6484,165Land use rights, net201,995198,01727,815Long-term investments3,126,0072,148,380301,781Right-of-use assets - operating lease12,797,15812,038,0431,690,974Other non-current assets3,573,1377,706,7571,082,562Total non-current assets45,718,56948,984,7486,880,847Total assets107,604,612112,044,07415,738,738LIABILITIES   Current liabilities:   Short-term borrowings5,729,5614,983,469700,024Trade and notes payable34,387,26639,547,7325,555,237Amounts due to related parties, current409,363763,945107,311Taxes payable400,146627,86088,195Current portion of operating lease liabilities1,945,9872,749,529386,224Current portion of long-term borrowings3,397,622932,832131,034Accruals and other liabilities16,041,07917,714,1862,488,297Total current liabilities62,311,02467,319,5539,456,322Non-current liabilities:   Long-term borrowings11,440,7558,721,2861,225,072Non-current operating lease liabilities11,260,73510,253,3591,440,281Amounts due to related parties, non-current329,492372,77852,364Deferred tax liabilities127,467118,54316,652Other non-current liabilities8,628,59613,170,3351,850,025Total non-current liabilities31,787,04532,636,3014,584,394Total liabilities94,098,06999,955,85414,040,716 NIO INC.
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands)

 As of December 31, 2024September 30, 2025September 30, 2025 RMBRMBUS$MEZZANINE EQUITY   Redeemable non-controlling interests7,441,9978,390,2301,178,569Total mezzanine equity7,441,9978,390,2301,178,569SHAREHOLDERS’ EQUITY   Total NIO Inc. shareholders’ equity5,967,0233,669,739515,485Non-controlling interests97,52328,2513,968Total shareholders’ equity6,064,5463,697,990519,453Total liabilities, mezzanine equity and shareholders’ equity107,604,612112,044,07415,738,738 NIO INC.
Unaudited Condensed Consolidated Statements of Comprehensive Loss
(All amounts in thousands, except for share and per share/ADS data)

 Three Months Ended
 September 30, 2024June 30,
2025September 30, 2025September 30, 2025 RMBRMBRMBUS$Revenues:    Vehicle sales16,697,558 16,136,114 19,202,278 2,697,328 Other sales1,975,970 2,872,551 2,591,597 364,039 Total revenues18,673,528 19,008,665 21,793,875 3,061,367 Cost of sales:    Vehicle sales(14,516,999)(14,473,222)(16,378,772)(2,300,712)Other sales(2,149,156)(2,637,920)(2,390,534)(335,796)Total cost of sales(16,666,155)(17,111,142)(18,769,306)(2,636,508)Gross profit2,007,373 1,897,523 3,024,569 424,859 Operating expenses:    Research and development(3,318,740)(3,007,032)(2,390,604)(335,806)Selling, general and administrative(4,108,806)(3,964,921)(4,184,675)(587,818)Other operating income182,406 165,572 29,188 4,100 Total operating expenses(7,245,140)(6,806,381)(6,546,091)(919,524)Loss from operations(5,237,767)(4,908,858)(3,521,522)(494,665)Interest and investment income310,123 107,529 354,396 49,782 Interest expenses(203,761)(212,748)(222,508)(31,255)Share of losses of equity investees(199,662)(124,664)(182,083)(25,577)Other income, net309,654 186,879 148,261 20,826 Loss before income tax expense(5,021,413)(4,951,862)(3,423,456)(480,889)Income tax expense(38,265)(42,939)(57,029)(8,011)Net loss(5,059,678)(4,994,801)(3,480,485)(488,900)Accretion on redeemable non-controlling interests to redemption value(91,400)(148,374)(155,369)(21,825)Net loss/(profit) attributable to non-controlling interests9,443 1,868 (24,899)(3,498)Net loss attributable to ordinary shareholders of NIO Inc.(5,141,635)(5,141,307)(3,660,753)(514,223)Net loss(5,059,678)(4,994,801)(3,480,485)(488,900)Other comprehensive (loss)/income    Foreign currency translation adjustment, net of nil tax(298,383)184,568 (141,362)(19,857)Total other comprehensive (loss)/income(298,383)184,568 (141,362)(19,857)Total comprehensive loss(5,358,061)(4,810,233)(3,621,847)(508,757)Accretion on redeemable non-controlling interests to redemption value(91,400)(148,374)(155,369)(21,825)Net loss/(profit) attributable to non-controlling interests9,443 1,868 (24,899)(3,498)Comprehensive loss attributable to ordinary shareholders of NIO Inc.(5,440,018)(4,956,739)(3,802,115)(534,080)Weighted average number of ordinary shares/ADSs used in computing net loss per share/ADS     Basic and diluted2,055,159,231 2,230,044,617 2,428,558,076 2,428,558,076 Net loss per share/ADS attributable to ordinary shareholders     Basic and diluted(2.50)(2.31)(1.51)(0.21)
NIO INC. 
Unaudited Reconciliation of GAAP and Non-GAAP Results
(All amounts in thousands, except for share and per share/ADS data)

 Three Months Ended September 30, 2025
 GAAP
ResultShare-based compensationOrganizational optimization chargesAccretion on redeemable non-controlling interests to redemption valueAdjusted
Result
(Non-GAAP) RMBRMBRMBRMBRMBCost of sales(18,769,306)15,98826,129—(18,727,189)Research and development expenses(2,390,604)279,090172,594—(1,938,920)Selling, general and administrative expenses(4,184,675)154,46797,113—(3,933,095)Total(25,344,585)449,545295,836—(24,599,204)Loss from operations(3,521,522)449,545295,836—(2,776,141)Net loss(3,480,485)449,545295,836—(2,735,104)Net loss attributable to ordinary shareholders of NIO Inc.(3,660,753)449,545295,836155,369(2,760,003)Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB)(1.51)0.190.120.06(1.14)Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (USD)(0.21)0.030.020.01(0.15) (All amounts in thousands, except for share and per share/ADS data)

 Three Months Ended June 30, 2025
 GAAP
ResultShare-based compensationOrganizational optimization chargesAccretion on redeemable non-controlling interests to redemption valueAdjusted
Result
(Non-GAAP) RMBRMBRMBRMBRMBCost of sales(17,111,142)12,86754,282—(17,043,993)Research and development expenses(3,007,032)302,620215,532—(2,488,880)Selling, general and administrative expenses(3,964,921)110,688172,074—(3,682,159)Total(24,083,095)426,175441,888—(23,215,032)Loss from operations(4,908,858)426,175441,888—(4,040,795)Net loss(4,994,801)426,175441,888—(4,126,738)Net loss attributable to ordinary shareholders of NIO Inc.(5,141,307)426,175441,888148,374(4,124,870)Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB)(2.31)0.190.200.07(1.85) (All amounts in thousands, except for share and per share/ADS data)

 Three Months Ended September 30, 2024
 GAAP
ResultShare-based compensationOrganizational optimization chargesAccretion on redeemable non-controlling interests to redemption valueAdjusted
Result
(Non-GAAP) RMBRMBRMB RMBRMBCost of sales(16,666,155)23,688——(16,642,467)Research and development expenses(3,318,740)415,955——(2,902,785)Selling, general and administrative expenses(4,108,806)207,413——(3,901,393)Total(24,093,701)647,056——(23,446,645)Loss from operations(5,237,767)647,056——(4,590,711)Net loss(5,059,678)647,056——(4,412,622)Net loss attributable to ordinary shareholders of NIO Inc.(5,141,635)647,056—91,400(4,403,179)Net loss per share/ADS attributable to ordinary shareholders, basic and diluted (RMB)(2.50)0.32—0.04(2.14) i  All translations from RMB to USD for the three months ended September 30, 2025 were made at the rate of RMB7.1190 to US$1.00, the noon buying rate in effect on September 30, 2025 in the H.10 statistical release of the Federal Reserve Board.
ii  Vehicle margin is the margin of new vehicle sales, which is calculated based on revenues and cost of sales derived from new vehicle sales only.
iii  Except for gross margin and vehicle margin, where absolute changes instead of percentage changes are calculated.

HONG KONG, CHINA / ACCESS Newswire / November 25, 2025 / Results Highlights In the first half of FY2026 ("1HFY2026"), the Group demonstrated remarkable resilience and delivered solid results, supported by an improvement in consumer sentiment and a revival in jewellery spending across the Group's key markets. The Group made steady progress in brand transformation, as well as store and product optimisation during the period.

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.

ARLETA, CA - AUGUST 02: Fernandeno Tataviam Band of Mission Indians, as part of its participation in the Medi-Vaxx Program of the San Fernando Valley, with El Proyecto del Barrio, Los Angeles Mission College, Mission Hospital and FirstMed Ambulance Services conducted one in a series of pop-up COVID-19 vaccination clinics at Montague Charter Academy for the Arts and Sciences in Arleta Monday morning. (Al Seib / Los Angeles Times via Getty Images).

Los Angeles Times via Getty Images

The pharmaceutical powerhouse Johnson & Johnson (NYSE: JNJ) has significantly outperformed its competitor Pfizer (NYSE: PFE) this year. JNJ’s stock has risen by almost 45%, whereas PFE has declined by 6%, greatly exceeding the S&P 500's 13% increase. This difference in performance results from Johnson & Johnson's strong strategic execution, in contrast to the challenges Pfizer is facing in a post-pandemic environment. We believe that JNJ stock continues to be a more favorable option compared to Pfizer. We will explore the details in the sections below. However, if you are looking for an investment with less volatility than holding individual stocks like JNJ or PFE, consider the High Quality Portfolio. This portfolio has consistently outperformed its benchmark—a mix of the S&P 500, Russell, and S&P MidCap indexes—and has achieved returns of over 105% since its launch. Why is this the case? Collectively, HQ Portfolio stocks have delivered better returns with lower risk compared to the benchmark index; they have provided a smoother investment experience, as demonstrated by the HQ Portfolio performance metrics.

Johnson & Johnson's Growth DriversThe rise in JNJ's stock is fueled by several positive factors:

Strong Earnings & Outlook: JNJ reported impressive Q3 2025 earnings, exceeding sales and profit projections while also raising its full-year guidance. This indicates management's confidence in ongoing growth.Strategic Acquisitions: Important acquisitions, including Halda Therapeutics (focused on prostate cancer) and Intra-Cellular Therapies (in the neurology sector), have enhanced and strengthened JNJ's high-growth portfolio.Portfolio Focus: The planned separation of the orthopedics division (DePuy Synthes) is viewed positively, enabling JNJ to concentrate on more rapidly growing, higher-margin fields such as cardiovascular and surgical technologies.Segment Strength: The Innovative Medicines division (driven by drugs such as Darzalex and Tremfya) and the MedTech division (supported by new launches and acquisitions like Abiomed and Shockwave) both exhibited consistent and robust operational growth.Pfizer's DownturnPfizer's stock downturn is mainly attributable to:

Decreasing COVID-19 Demand: A decline in demand for its key COVID-19 products, Comirnaty and Paxlovid, compared to sales during the pandemic has resulted in a notable revenue gap.Growth Concerns: Ongoing investor worries regarding future growth are amplified by patent expirations, a complicated regulatory landscape (particularly around vaccines), and the recent withdrawal of a weight-loss medication candidate.On the whole, JNJ stock demonstrates superior revenue growth performance across significant timeframes, improved margins, and a relatively lower valuation compared to PFE stock, indicating that investing in JNJ might be more beneficial.

JNJ's quarterly revenue growth was 6.8%, compared to PFE's -5.9%.Additionally, its revenue growth for the Last 12 Months came in at 5.1%, surpassing PFE's 3.9%.JNJ also exhibits stronger profitability across both periods, with an LTM margin of 26.2% and a 3-year average of 26.4%.See how Johnson & Johnson's financials compare with its peers, including Pfizer.

These distinctions become even more apparent when examining the financials side by side. The table highlights how JNJ's fundamentals compare to those of PFE concerning growth, margins, momentum, and valuation multiples.

Valuation & Performance OverviewValuation & Performance Overview

Trefis

See more revenue details:

JNJ Revenue ComparisonPFE Revenue ComparisonSee more margin details:

JNJ Operating Income ComparisonPFE Operating Income ComparisonReview detailed fundamentals regarding Buy or Sell PFE Stock and Buy or Sell JNJ Stock. Below, we compare market returns and related metrics over the years.

Historical Market PerformanceHistorical Market Performance

Trefis

Still uncertain about choosing between JNJ or PFE? Consider a portfolio strategy.

The Best Investors Think In PortfoliosIndividual stock selections can be volatile, but maintaining investment is crucial. A diversified portfolio enables you to remain the course, harness potential growth, and minimize risks. Consider the Trefis Reinforced Value (RV) Portfolio, which has outperformed its benchmark for all-cap stocks (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices), generating robust returns for its investors. Why is this so? The quarterly rebalanced mix of large-, mid-, and small-cap stocks in the RV Portfolio offered a responsive means to capitalize on favorable market trends while also limiting losses during downturns, as outlined in RV Portfolio performance metrics.

Q4: 2025-11-24 Earnings SummaryEPS of $0.58 beats by $0.50

 |

Revenue of

$618.46M

(7.23% Y/Y)

beats by $14.46M

Symbotic Inc. (SYM) Q4 2025 Earnings Call November 24, 2025 5:00 PM EST

Company Participants

Charles Anderson - Vice President of Investor Relations & Corporate Development
Richard Cohen - Chairman of the Board, President & CEO
Izilda Martins - Chief Financial Officer

Conference Call Participants

Nicole DeBlase - Deutsche Bank AG, Research Division
Joseph Giordano - TD Cowen, Research Division
Andrew Kaplowitz - Citigroup Inc., Research Division
Mark Delaney - Goldman Sachs Group, Inc., Research Division
Colin Rusch - Oppenheimer & Co. Inc., Research Division
Guy Drummond Hardwick - Barclays Bank PLC, Research Division
Derek Soderberg - Cantor Fitzgerald & Co., Research Division
James Ricchiuti - Needham & Company, LLC, Research Division
Kenneth Newman - KeyBanc Capital Markets Inc., Research Division
Mike Latimore - Northland Capital Markets, Research Division
Greg Palm - Craig-Hallum Capital Group LLC, Research Division
Keith Housum - Northcoast Research Partners, LLC

Presentation

Operator

Good day, and thank you for standing by. Welcome to the Symbotic Fourth Quarter 2025 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker for today, Charlie Anderson. Please go ahead.

Charles Anderson
Vice President of Investor Relations & Corporate Development

Hello. Welcome to Symbotic's Fourth Quarter and Fiscal Year 2025 Financial Results Webcast. I'm Charlie Anderson, Symbotic's Vice President of Investor Relations. Some of the statements that we make today regarding our business operations and financial performance may be considered forward-looking. Such statements are based on current expectations and assumptions that are subject to a number of risks and uncertainties. Actual results could differ materially. Please refer to our Form 10-K, including the risk factors. We undertake no obligation to update any forward-looking statements.

In addition, during this call, we will present both GAAP and non-GAAP financial measures. Reconciliation of GAAP to non-GAAP financial measures is included in

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Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

, /PRNewswire/ -- Yiren Digital Ltd. (NYSE: YRD) ("Yiren Digital" or the "Company"), a leading fintech company specializing in digital consumer lending, insurance and financial technology innovation across China and Southeast Asia, today announced its unaudited financial results for the quarter ended September 30, 2025.

Third Quarter 2025 Operational Highlights

Financial Services Business

Total loans facilitated in the third quarter of 2025 reached RMB20.2 billion (US$2.8 billion), representing an increase of 51% compared to RMB13.4 billion in the same period of 2024 and remaining stable compared to RMB20.3 billion in the second quarter of 2025.
Cumulative number of borrowers served reached 14,006,873 as of September 30, 2025, representing an increase of 3% from 13,536,838 as of June 30, 2025, and increase of 21% compared to 11,611,899 as of September 30, 2024.
Number of borrowers served in the third quarter of 2025 was 1,335,978, representing a decrease of 18% compared to 1,637,912 in the second quarter of 2025 and a decrease of 11% compared to 1,498,020 in the same period of 2024. The decrease was due to our strategic tightening of our credit policy amid industry-wide credit risk fluctuations.
Outstanding balance of performing loans facilitated reached RMB34.2 billion (US$4.8 billion) as of September 30, 2025, representing an increase of 10% from RMB31.2 billion as of June 30, 2025 and an increase of 50% compared to RMB22.8 billion as of September 30, 2024.

Insurance Brokerage Business

Gross written premiums in the third quarter of 2025 were RMB1,148.0 million (US$161.3 million), representing an increase of 35% from RMB850.1 million in the second quarter of 2025 and 15% decrease compared to RMB1,351.3 million in the same period of 2024. The increase was attributed to the accelerating growth of our internet insurance business as well as the strong performance of renewal premiums.
Annualized insurance premiums of internet insurance products were RMB196.2 million (US$27.6 million), representing an increase of 204% from RMB64.5 million in the second quarter of 2025.

"We delivered a stable and resilient quarter amid industry-wide challenges," said Mr. Ning Tang, Chairman and Chief Executive Officer. "Through adaptive risk management measures and business diversification — including the growth of our high-potential online insurance business — we have demonstrated our ability to manage risk in a challenging environment."   

"As part of our ongoing transformation, we advanced our agentic AI capabilities to improve process efficiency and unit economics. These innovations are now helping to mitigate the margin pressure associated with the current credit cycle."

"We maintain a healthy and ample cash position and are driving the turnaround of the insurance business with the new internet insurance strategy. Our balance sheet remained robust with total cash, cash equivalents, and restricted cash of RMB4.3 billion. This provides us with the financial flexibility to invest in our next generation of fintech." Mr. William Hui, Chief Financial Officer commented.

Third Quarter 2025 Financial Results

Total net revenue in the third quarter of 2025 was RMB1,555.0 million (US$218.4 million), representing an increase of 5% from RMB1,479.1 million in the third quarter of 2024. Particularly, in the third quarter of 2025, revenue from financial services business was RMB1,423.2 million (US$199.9 million), representing an increase of 70% from RMB836.2 million in the same period of 2024. The increase was attributed to persistent demand for our small revolving loan products, as well as a growing repeat borrowing rate among existing borrowers. The financial service revenue accounts for 92% of the total net revenue. Revenue from insurance brokerage business was RMB84.2 million (US$11.8 million), representing a decrease of 2% from RMB85.5 million in the third quarter of 2024. The decrease was attributable to lower overall commission rates from the traditional line. Net revenue from other business was RMB47.5 million (US$6.7 million), compared with the revenue of RMB557.4 million in the third quarter of 2024. The decrease was mainly attributed to our strategic decision to wind down the historical "consumption and lifestyle" segment announced in the fourth quarter of 2024.

Sales and marketing expenses in the third quarter of 2025 were RMB331.8 million (US$46.6 million), compared to RMB335.6 million in the same period of 2024.

Origination, servicing and other operating costs in the third quarter of 2025 were RMB149.9 million (US$21.1 million), compared to RMB205.9 million in the same period of 2024. This decrease was primarily due to 27% decrease in origination and service expense from the financial services and lower commission costs from our insurance brokerage business.

Research and development expenses in the third quarter of 2025 were RMB91.5 million (US$12.9 million), compared to RMB150.8 million in the same period of 2024. The decrease in R&D expenses was due to the one-off system development project from 2024.

General and administrative expenses in the third quarter of 2025 were RMB104.4 million (US$14.7 million), compared to RMB80.1 million in the same period of 2024. The increase was primarily due to increase in personnel related costs to strengthen our risk management and fund the plan for new business initiatives.

Allowance for contract assets, receivables and others in the third quarter of 2025 was RMB229.4 million (US$32.2 million), compared to RMB94.9 million in the same period of 2024. The increase was driven by higher receivables from loan facilitation services and guarantee services, fueled by growing loan volume.  Additionally, due to the increase in self-funded loan balance in the third quarter of 2025, the balance of financing receivables increased from RMB 17.5 million to RMB 1.1 billion.

Provision for contingent liabilities in the third quarter of 2025 was RMB459.8 million (US$64.6 million), compared to RMB272.4 million in the same period of 2024. The increase was attributable to increase in loan volume facilitated under risk-taking model. [1]

Fair value adjustments gain in the third quarter of 2025 was a gain of RMB161.3 million (US$22.7 million) compared to a gain of RMB36.4 million in the same period of 2024. The increase was mainly due to the fair value change in crypto assets, driven by an increase in the price of Ethereum.

Income tax expense in the third quarter of 2025 was RMB56.1 million (US$7.9 million).

Net income in the third quarter of 2025 was RMB317.6 million (US$44.6 million), as compared to RMB355.4 million in the same period in 2024. The decrease was primarily due to substantial upfront provisions — required by accounting principles for our growing loan volume under the "risk-taking model" — coupled with a declining fee rate of loan-facilitation business following the new regulations as well as a decreasing commission rate in our insurance brokerage business. The industry-wide fluctuations in asset quality and our conservative risk assumptions are also attributed to the overall declined profitability.

Adjusted EBITDA[2] (non-GAAP) in the third quarter of 2025 was RMB236.8 million (US$33.3 million), compared to RMB380.9 million in the same period of 2024 and RMB351.4 million in the second quarter of 2025.

Basic and diluted income per ADS in the third quarter of 2025 were RMB3.6472 (US$0.5124) and RMB3.6270 (US$0.5094) respectively, compared to a basic income per ADS of RMB4.0618 and a diluted income per ADS of RMB4.0384 in the same period of 2024.

Net cash used in operating activities in the third quarter of 2025 was RMB5.5 million (US$0.8 million), compared to RMB50.4 million generated from operating activities in the same period of 2024.

Net cash used in investing activities in the third quarter of 2025 was RMB707.6 million (US$99.4 million), compared to RMB1,859.6 million in the same period of 2024.

Net cash provided by financing activities in the third quarter of 2025 was RMB529.7 million (US$74.4 million), compared to RMB22.2 million used in financing activities in the same period of 2024.

As of September 30, 2025, cash and cash equivalents were RMB3,864.9 million (US$542.9 million), compared to RMB4,098.9 million as of June 30, 2025. As of September 30, 2025, the balance of financial investment was RMB498.8 million (US$70.1 million), compared to RMB418.9 million as of June 30, 2025.

Delinquency rates[3]. As of September 30, 2025, the delinquency rates for loans that are past due for 1-30 days, 31-60 days and 61-90 days were 2.7%, 1.7% and 1.4%, respectively, compared to 1.7%, 1.1% and 1.0%, respectively, as of June 30, 2025.

Business Outlook

Based on the Company's preliminary assessment of business and market conditions, the Company projects the total revenue in the fourth quarter of 2025 to be between RMB1.4 billion and RMB1.6 billion, driven by loan growth from domestic market and international markets, and further market penetration into new customer segment.

This is the Company's current and preliminary view, which is subject to changes and uncertainties.

Non-GAAP Financial Measures

In evaluating the business, the Company considers and uses several non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin as supplemental measures to review and assess operating performance. We believe these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and prospects and allow for greater visibility with respect to key metrics used by our management in our financial and operational decision-making. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The non-GAAP financial measures have limitations as analytical tools. Other companies, including peer companies in the industry, may calculate these non-GAAP measures differently, which may reduce their usefulness as a comparative measure. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating our performance. See "Operating Highlights and Reconciliation of GAAP to Non-GAAP measures" at the end of this press release.

Currency Conversion

This announcement contains currency conversions of certain RMB amounts into US$ at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ are made at a rate of RMB7.1190 to US$1.00, the effective noon buying rate on September 30, 2025, as set forth in the H.10 statistical release of the Federal Reserve Board.

Conference Call

Yiren Digital's management will host an earnings conference call at 7:00 a.m. U.S. Eastern Time on November 25, 2025 (or 8:00 p.m. Beijing/Hong Kong Time on November 25, 2025).

Participants who wish to join the call should register online in advance of the conference at:
https://dpregister.com/sreg/10204584/1005e60b0b0

Once registration is completed, participants will receive the dial-in details for the conference call.

Additionally, a live and archived webcast of the conference call will be available at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=yBd8FS50

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Yiren Digital's control. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results to differ materially from those contained in any such statements. Potential risks and uncertainties include, but are not limited to, uncertainties as to Yiren Digital's ability to attract and retain borrowers and investors on its marketplace, its ability to introduce new loan products and platform enhancements, its ability to compete effectively, PRC regulations and policies relating to the peer-to-peer lending service industry in China, general economic conditions in China, and Yiren Digital's ability to meet the standards necessary to maintain the listing of its ADSs on the NYSE or other stock exchange, including its ability to cure any non-compliance with the NYSE's continued listing criteria. Further information regarding these and other risks, uncertainties or factors is included in Yiren Digital's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and Yiren Digital does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

About Yiren Digital

Yiren Digital Ltd. is a leading fintech company specializing in digital consumer lending, insurance, and financial technology innovation across China and Southeast Asia. The Company leverages advanced artificial intelligence and emerging technologies to enhance customer experience, optimize capital efficiency, and expand financial inclusion. With the recent launch of its Magicube Agent Platform and its strategic entry into digital asset business, Yiren Digital is building a new growth engine to become an AI-powered and blockchain-enabled global fintech leader. For more information, please visit https://ir.yiren.com.

1. The risk-taking model refers to the framework in which we assume the credit risk for the loans facilitated on our platform.

2. "Adjusted EBITDA" is a non-GAAP financial measure. For more information on this non-GAAP financial measure, please see the section of "Operating Highlights and Reconciliations of GAAP to Non-GAAP Measures" and the table captioned "Reconciliations of Adjusted EBITDA" set forth at the end of this press release.

3. "Delinquency rates" refers to the outstanding principal balance of loans that were 1-30 days, 31-60 days and 61-90 days past due as a percentage of the total performing outstanding principal balance of loans as of a specific date. Loans originating outside mainland China are not included in the calculation. We define a performing loan as one that is being repaid according to the agreed terms and has not become delinquent for more than 90 days.

Unaudited Condensed Consolidated Statements of Operations

 (in thousands, except for share, per share and per ADS data, and percentages)

For the Three Months Ended 

For the Nine Months Ended 

September 30,
2024

June 30,
2025

September 30,
2025

September 30,
2025

September 30,
2024

September 30,
2025

September 30,
2025

RMB

RMB

RMB

USD

RMB

RMB

USD

Net revenue:

Loan facilitation services

600,899

874,584

611,859

85,947

1,972,726

2,228,837

313,083

Post-origination services

1,421

10,463

2,617

368

4,483

14,824

2,082

Guarantee services

136,746

316,942

458,363

64,386

222,533

1,093,702

153,631

Financing services

31,448

65,821

67,850

9,531

61,688

175,558

24,661

Insurance brokerage services

85,530

58,137

84,228

11,831

301,982

213,825

30,036

Electronic commerce services

546,366

93,962

32,555

4,573

1,572,943

310,590

43,629

Others

76,678

232,191

297,492

41,788

217,353

724,253

101,735

Total net revenue

1,479,088

1,652,100

1,554,964

218,424

4,353,708

4,761,589

668,857

Operating costs and expenses:

Sales and marketing

335,647

345,166

331,758

46,602

897,971

953,876

133,990

Origination,servicing and other operating costs

205,913

160,859

149,911

21,058

685,725

535,508

75,223

Research and development

150,840

107,693

91,514

12,855

247,173

285,161

40,056

General and administrative

80,097

78,862

104,420

14,668

232,441

279,119

39,208

Allowance for contract assets, receivables and others

94,913

214,698

229,355

32,217

320,532

596,858

83,840

Provision for contingent liabilities

272,406

385,674

459,783

64,585

618,589

1,256,220

176,460

Total operating costs and expenses

1,139,816

1,292,952

1,366,741

191,985

3,002,431

3,906,742

548,777

Other income:

Investment income *

1,101

2,245

3,791

532

11,812

8,008

1,125

Interest income

20,776

22,353

19,704

2,768

62,446

64,291

9,031

Fair value adjustments gain

36,423

28,018

161,328

22,662

90,597

130,970

18,397

Others, net

2,535

14,084

644

91

3,201

15,403

2,163

Total other income

60,835

66,700

185,467

26,053

168,056

218,672

30,716

Income before provision for income taxes

400,107

425,848

373,690

52,492

1,519,333

1,073,519

150,796

Share of results of equity investees

-

(4,431)

-

-

-

(4,560)

(641)

Income tax expense

44,665

63,877

56,053

7,874

268,480

146,276

20,547

Net income

355,442

357,540

317,637

44,618

1,250,853

922,683

129,608

Weighted average number of ordinary shares
outstanding, basic

175,018,644

172,907,793

174,179,898

174,179,898

173,557,082

173,301,042

173,301,042

Basic income per share

2.0309

2.0678

1.8236

0.2562

7.2072

5.3242

0.7479

Basic income per ADS

4.0618

4.1356

3.6472

0.5124

14.4144

10.6484

1.4958

Weighted average number of ordinary shares
outstanding, diluted

176,035,324

174,102,643

175,153,288

175,153,288

175,457,062

174,402,280

174,402,280

Diluted income per share

2.0192

2.0536

1.8135

0.2547

7.1291

5.2905

0.7432

Diluted income per ADS

4.0384

4.1072

3.6270

0.5094

14.2582

10.5810

1.4864

Unaudited Condensed Consolidated Cash Flow Data

Net cash generated from/(used in) operating activities

50,393

411,224

(5,484)

(770)

1,051,044

884,390

124,229

Net cash used in investing activities

(1,859,587)

(752,200)

(707,599)

(99,396)

(3,080,167)

(1,605,389)

(225,508)

Net cash (used in)/provided by financing activities

(22,227)

447,588

529,732

74,411

(162,885)

896,744

125,965

Effect of foreign exchange rate changes

(6,252)

(9,412)

(10,449)

(1,468)

(5,808)

(17,494)

(2,457)

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

(1,837,673)

97,200

(193,800)

(27,223)

(2,197,816)

158,251

22,229

Cash, cash equivalents and restricted cash, beginning of
period

5,698,461

4,356,408

4,453,608

625,595

6,058,604

4,101,557

576,142

Cash, cash equivalents and restricted cash, end of period

3,860,788

4,453,608

4,259,808

598,372

3,860,788

4,259,808

598,371

* Due to the expansion in the types of the Company's investments, investment income has been separately presented, split out from the original interest income, to reflect the realized
gains from the Company's financial investments, and historical periods have been restated to enhance investors' comprehension of the Company's financial statements.

Unaudited Condensed Consolidated Balance Sheets

 (in thousands)

As of

December 31,
2024

June 30,
2025

September 30,
2025

September 30,
2025

RMB

RMB

RMB

USD

        Cash and cash equivalents

3,841,284

4,098,851

3,864,891

542,898

        Restricted cash

260,273

354,757

394,917

55,474

        Accounts receivable

566,541

553,660

796,551

111,891

        Guarantee receivable

474,132

656,019

715,996

100,575

        Contract assets, net

1,008,920

1,319,246

1,227,236

172,389

        Contract cost

294

4,880

6,936

974

        Prepaid expenses and other assets

2,361,585

2,486,393

2,672,111

375,349

        Loans at fair value

421,922

480,915

473,570

66,522

        Financing receivables

17,515

484,733

1,061,080

149,049

        Amounts due from related parties

3,387,952

3,131,581

3,101,835

435,712

        Financial investments

437,203

418,856

498,766

70,061

        Equity investments

9,239

4,633

4,633

651

        Property, equipment and software, net

78,678

85,155

84,867

11,921

        Crypto assets

-

203,541

333,530

46,851

        Deferred tax assets

77,463

128,989

173,182

24,327

        Right-of-use assets

39,695

37,190

40,257

5,655

Total assets

12,982,696

14,449,399

15,450,358

2,170,299

        Accounts payable

43,167

61,580

50,401

7,080

        Amounts due to related parties

129,629

81,688

51,826

7,280

        Guarantee liabilities-stand ready

606,886

889,343

929,970

130,632

        Guarantee liabilities-contingent

578,797

848,704

874,717

122,871

        Deferred revenue

9,479

515

335

47

        Payable to investors at fair value

368,022

872,250

1,392,631

195,622

        Accrued expenses and other liabilities

1,622,050

1,582,978

1,647,346

231,401

        Borrowings

-

-

9,255

1,300

        Deferred tax liabilities

41,471

91,666

108,404

15,228

        Lease liabilities

40,765

38,281

42,596

5,983

Total liabilities

3,440,266

4,467,005

5,107,481

717,444

        Ordinary shares

132

132

133

19

        Additional paid-in capital

5,198,457

5,210,508

5,229,667

734,607

        Treasury stock

(170,463)

(170,686)

(170,686)

(23,976)

        Accumulated other comprehensive income

79,268

42,195

70,603

9,917

        Retained earnings

4,435,036

4,900,245

5,213,160

732,288

Total equity

9,542,430

9,982,394

10,342,877

1,452,855

Total liabilities and equity

12,982,696

14,449,399

15,450,358

2,170,299

Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except for number of  borrowers, number of insurance clients, cumulative number of insurance clients and percentages)

For the Three Months Ended 

For the Nine Months Ended 

September 30,
2024

June 30,
2025

September 30,
2025

September 30,
2025

September 30,
2024

September 30,
2025

September 30,
2025

RMB

RMB

RMB

USD

RMB

RMB

USD

Operating Highlights

Amount of loans facilitated 

13,392,676

20,347,799

20,166,545

2,832,778

38,239,060

55,752,267

7,831,474

Number of borrowers

1,498,020

1,637,912

1,335,978

1,335,978

3,365,960

3,145,904

3,145,904

Remaining principal of performing loans 

22,768,555

31,220,078

34,235,130

4,808,980

22,768,555

34,235,130

4,808,980

Cumulative number of insurance clients

1,470,738

1,681,888

1,853,435

1,853,435

1,470,738

1,853,435

1,853,435

Number of insurance clients

82,291

118,747

229,353

229,353

226,191

387,130

387,130

Gross written premiums

1,351,311

850,080

1,147,966

161,254

3,324,627

2,799,844

393,292

First year premium

511,377

440,353

443,189

62,255

1,602,905

1,296,039

182,054

Renewal premium

839,934

409,727

704,777

98,999

1,721,722

1,503,805

211,238

Segment Information

Financial services business:

Revenue

836,193

1,489,587

1,423,231

199,920

2,425,341

4,207,298

590,996

Sales and marketing expenses

307,459

332,405

322,184

45,257

812,484

915,492

128,598

Origination, servicing and other operating costs

119,706

105,617

87,322

12,266

318,727

333,562

46,855

Allowance for contract assets, receivables and
others

93,248

216,260

226,267

31,784

319,140

594,639

83,528

Provision for contingent liabilities

272,406

385,674

459,783

64,585

618,589

1,256,220

176,460

Insurance brokerage business:

Revenue

85,530

58,137

84,228

11,831

301,982

213,825

30,036

Sales and marketing expenses

3,545

2,731

2,077

292

11,373

7,603

1,068

Origination, servicing and other operating costs

78,466

52,683

61,142

8,589

337,707

195,265

27,429

Allowance for contract assets, receivables and
others

(414)

564

677

95

(904)

663

93

Others:

Revenue

557,365

104,376

47,505

6,673

1,626,385

340,466

47,825

Sales and marketing expenses

24,643

10,030

7,497

1,053

74,114

30,781

4,324

Origination, servicing and other operating costs

7,741

2,559

1,447

203

29,291

6,681

939

Allowance for contract assets, receivables and
others

1,666

45

34

5

1,664

(1,915)

(269)

Reconciliation of Adjusted EBITDA

Net income

355,442

357,540

317,637

44,618

1,250,853

922,683

129,608

Interest income and investment income, net

(21,877)

(24,598)

(23,495)

(3,300)

(74,258)

(72,299)

(10,156)

Income tax expense

44,665

63,877

56,053

7,874

268,480

146,276

20,547

Depreciation and amortization

2,401

2,643

3,252

457

6,319

8,192

1,151

Share-based compensation

13,235

6,932

14,439

2,028

16,578

23,558

3,310

Fair value adjustments related to crypto assets
and financial investment

(12,954)

(54,979)

(131,101)

(18,416)

(11,286)

(115,256)

(16,190)

Adjusted EBITDA

380,912

351,415

236,785

33,261

1,456,686

913,154

128,270

Adjusted EBITDA margin

25.8 %

21.3 %

15.2 %

15.2 %

33.5 %

19.2 %

19.2 %

Delinquency Rates

1-30 days

31-60 days

61-90 days

December 31, 2020

1.3 %

0.7 %

0.6 %

December 31, 2021

2.0 %

1.5 %

1.2 %

December 31, 2022

1.7 %

1.2 %

1.1 %

December 31, 2023

2.0 %

1.4 %

1.2 %

December 31, 2024

1.6 %

1.2 %

1.1 %

March 31, 2025

1.6 %

1.2 %

1.2 %

June 30, 2025

1.7 %

1.1 %

1.0 %

September 30, 2025

2.7 %

1.7 %

1.4 %

30+ Days Delinquency Rates By Vintage*

Loan
Issued
Period

Month on Book

2

4

6

8

10

12

14

16

18

20

22

24

2020Q1

0.8 %

2.0 %

3.4 %

4.5 %

5.4 %

5.9 %

6.5 %

6.8 %

7.1 %

7.5 %

8.1 %

8.5 %

2020Q2

0.6 %

2.0 %

3.3 %

4.5 %

5.3 %

6.0 %

6.4 %

6.9 %

7.4 %

8.0 %

8.6 %

8.8 %

2020Q3

1.3 %

2.8 %

4.3 %

5.4 %

6.3 %

6.9 %

7.5 %

8.2 %

8.9 %

9.3 %

9.5 %

9.5 %

2020Q4

0.3 %

1.4 %

2.4 %

3.4 %

4.3 %

5.4 %

6.4 %

7.3 %

7.7 %

8.0 %

8.2 %

8.3 %

2021Q1

0.5 %

1.8 %

3.0 %

4.2 %

5.3 %

6.3 %

7.1 %

7.3 %

7.5 %

7.7 %

7.8 %

7.9 %

2021Q2

0.5 %

2.1 %

3.8 %

5.5 %

6.8 %

7.5 %

7.7 %

7.9 %

8.1 %

8.3 %

8.2 %

8.2 %

2021Q3

0.6 %

2.5 %

4.2 %

5.4 %

6.1 %

6.5 %

6.7 %

6.9 %

6.9 %

6.9 %

6.9 %

6.8 %

2021Q4

0.8 %

2.7 %

4.1 %

4.9 %

5.4 %

5.8 %

5.8 %

5.8 %

5.7 %

5.6 %

5.6 %

5.5 %

2022Q1

0.7 %

2.1 %

3.2 %

4.0 %

4.6 %

4.8 %

4.7 %

4.6 %

4.6 %

4.5 %

4.5 %

4.4 %

2022Q2

0.5 %

1.8 %

2.9 %

3.8 %

4.3 %

4.5 %

4.4 %

4.3 %

4.3 %

4.2 %

4.2 %

4.1 %

2022Q3

0.6 %

2.2 %

3.5 %

4.3 %

4.8 %

5.0 %

5.0 %

4.9 %

4.9 %

4.8 %

4.7 %

4.7 %

2022Q4

0.7 %

2.5 %

3.9 %

4.9 %

5.6 %

5.9 %

5.8 %

5.8 %

5.7 %

5.6 %

5.5 %

5.4 %

2023Q1

0.6 %

2.4 %

4.0 %

5.2 %

5.9 %

6.2 %

6.1 %

6.0 %

5.9 %

5.8 %

5.7 %

5.6 %

2023Q2

0.7 %

3.0 %

4.9 %

6.3 %

7.0 %

7.3 %

7.2 %

7.0 %

6.9 %

6.8 %

6.7 %

6.6 %

2023Q3

0.9 %

3.7 %

5.8 %

7.1 %

7.9 %

8.1 %

8.0 %

7.9 %

7.7 %

7.6 %

7.5 %

7.5 %

2023Q4

0.8 %

3.6 %

5.8 %

7.0 %

7.6 %

7.8 %

7.7 %

7.5 %

7.4 %

7.3 %

7.3 %

2024Q1

0.7 %

3.2 %

5.0 %

6.1 %

6.7 %

7.0 %

6.9 %

6.8 %

6.7 %

6.9 %

2024Q2

0.6 %

2.5 %

4.2 %

5.3 %

6.0 %

6.2 %

6.2 %

6.2 %

2024Q3

0.6 %

2.3 %

3.8 %

4.9 %

5.6 %

5.9 %

5.7 %

2024Q4

0.7 %

2.4 %

3.9 %

5.1 %

5.9 %

2025Q1

0.6 %

2.4 %

4.3 %

5.2 %

2025Q2

0.8 %

3.3 %

2025Q3

1.0 %

*The 30+ days delinquency rate by vintage refers to the outstanding principal balance of loans facilitated over a specified period that are
more than 30 days past due, as a percentage of the total loans facilitated during that same period. Loans originating outside mainland
China are excluded from the calculation.

SOURCE Yiren Digital

HONG KONG--(BUSINESS WIRE)--Alibaba Group Holding Limited (NYSE: BABA and HKEX: 9988 (HKD Counter) and 89988 (RMB Counter), “Alibaba” or “Alibaba Group”) today announced its financial results for the quarter ended and the six months ended September 30, 2025.

“We have entered into an investment phase to build long-term strategic value in AI technologies and infrastructure and a consumption platform integrating daily life services and e-commerce. With our significant strategic investments in these areas, our two core businesses of AI + Cloud and consumption continued to deliver strong growth this quarter. Robust AI demand further accelerated our Cloud Intelligence Group business, with revenue up 34% and AI-related product revenue achieving triple-digit year-over-year growth for the ninth consecutive quarter. In our consumption business, quick commerce continued to scale with significant improvement in unit economics and drove rapid growth in monthly active consumers on the Taobao app,” said Eddie Wu, Chief Executive Officer of Alibaba Group.

“Our core businesses continued to deliver solid revenue growth, with AI revenue contributing to an expanding share of our cloud revenues from external customers, and customer management revenue up 10%. We are re-investing our profits and free cash flow for the future while near-term profitability is expected to fluctuate. Over the past four quarters, we have deployed approximately RMB120 billion in capital expenditure toward AI and cloud infrastructure,” said Toby Xu, Chief Financial Officer of Alibaba Group.

BUSINESS HIGHLIGHTS

In the quarter ended September 30, 2025:

Revenue was RMB247,795 million (US$34,808 million), an increase of 5% year-over-year. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 15% year-over-year.

Income from operations was RMB5,365 million (US$754 million), a decrease of 85% year-over-year, primarily due to the decrease in adjusted EBITA. Adjusted EBITA, a non-GAAP measurement, decreased 78% year-over-year to RMB9,073 million (US$1,274 million), primarily attributable to the investment in quick commerce, user experiences, and technology, partly offset by double-digit revenue growth in Alibaba China E-commerce Group, the improved operating results supported by continued growth in Cloud business, as well as enhanced operating efficiencies across various businesses.

Net income attributable to ordinary shareholders was RMB20,990 million (US$2,948 million). Net income was RMB20,612 million (US$2,895 million), a decrease of 53% year-over-year, primarily attributable to the decrease in income from operations. Non-GAAP net income in the quarter ended September 30, 2025 was RMB10,352 million (US$1,454 million), a decrease of 72% compared to RMB36,518 million in the same quarter of 2024.

Diluted earnings per ADS was RMB8.75 (US$1.23). Diluted earnings per share was RMB1.09 (US$0.15 or HK$1.19). Non-GAAP diluted earnings per ADS was RMB4.36 (US$0.61), a decrease of 71% year-over-year. Non-GAAP diluted earnings per share was RMB0.55 (US$0.08 or HK$0.60), a decrease of 71% year-over-year.

Net cash provided by operating activities was RMB10,099 million (US$1,419 million), a decrease of 68% compared to RMB31,438 million in the same quarter of 2024. Free cash flow, a non-GAAP measurement of liquidity, was an outflow of RMB21,840 million (US$3,068 million), compared to an inflow of RMB13,735 million in the same quarter of 2024. The decrease in free cash flow was mainly attributed to the investment in quick commerce and the increase in our cloud infrastructure expenditure. As of September 30, 2025, our cash and other liquid investments(1) were RMB573,889 million (US$80,614 million).

In the six months ended September 30, 2025:

Revenue was RMB495,447 million (US$69,595 million), an increase of 3% year-over-year. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 12% year-over-year.

Income from operations was RMB40,353 million (US$5,668 million), a decrease of 43% year-over-year, primarily due to the decrease in adjusted EBITA, partly offset by a one-time provision(2) in the same period last year. Adjusted EBITA, a non-GAAP measurement, decreased 44% year-over-year to RMB47,917 million (US$6,731 million), primarily attributable to the investment in quick commerce, user experiences, and technology, partly offset by double-digit revenue growth in Alibaba China E-commerce Group, the improved operating results supported by continued growth in Cloud business, as well as enhanced operating efficiencies across various businesses.

Net income attributable to ordinary shareholders was RMB64,106 million (US$9,005 million). Net income was RMB62,994 million (US$8,849 million), a decrease of 7% year-over-year, primarily attributable to the decrease in income from operations, partly offset by the mark-to-market changes from our equity investments, gain from the disposal of local consumer service business of Trendyol, and the decrease in both the impairment of our investments and net exchange loss. Non-GAAP net income in the six months ended September 30, 2025 was RMB43,862 million (US$6,161 million), a decrease of 43% compared to RMB77,209 million in the same period of 2024.

Diluted earnings per ADS was RMB26.73 (US$3.75). Diluted earnings per share was RMB3.34 (US$0.47 or HK$3.66). Non-GAAP diluted earnings per ADS was RMB19.10 (US$2.68), a decrease of 39% year-over-year. Non-GAAP diluted earnings per share was RMB2.39 (US$0.34 or HK$2.62), a decrease of 39% year-over-year.

Net cash provided by operating activities was RMB30,771 million (US$4,322 million), a decrease of 53% compared to RMB65,074 million in the same period of 2024. Free cash flow, a non-GAAP measurement of liquidity, was an outflow of RMB40,655 million (US$5,711 million), compared to an inflow of RMB31,107 million in the same period of 2024. The decrease in free cash flow was mainly attributed to the increase in our cloud infrastructure expenditure and the investment in quick commerce. As of September 30, 2025, our cash and other liquid investments(1) were RMB573,889 million (US$80,614 million).

Reconciliations of GAAP measures to non-GAAP measures presented above are included at the end of this results announcement.

(1) Cash and other liquid investments represent cash and cash equivalents, short-term investments and other treasury investments included in equity securities and other investments on the consolidated balance sheets, of which that are unrestricted for withdrawal and use.

(2) See the section entitled “Six Months Ended September Other Financial Results” for more information.

BUSINESS AND STRATEGIC UPDATES

Alibaba China E-commerce Group

During the quarter, we executed our plan to reach critical mass scale in quick commerce, improve user experience and enhance operating efficiency. The quick commerce business has substantially improved its unit economics since September, driven by higher fulfillment logistics efficiency, strong customer retention and increasing average order value. As part of our strategy to generate synergies between quick commerce and the rest of Alibaba’s ecosystem, we accelerated the onboarding of Tmall brands to our quick commerce channel to expand product offering and meet consumer needs for on-demand delivery. We had onboarded offline stores from approximately 3,500 Tmall brands to the quick commerce business as of October 31, 2025.

Customer management revenue grew 10% year-over-year to RMB78,927 million (US$11,087 million) during the quarter, primarily driven by the improvement of take rate, which benefited from the increasing penetration of Quanzhantui and the addition of software service fees in September last year. The growing mindshare and increasing scale of our quick commerce business contributed to a rapid year-over-year increase in monthly active consumers on the Taobao app during the quarter, which generated incremental customer management revenue.

We had a successful 11.11 Global Shopping Festival, which delivered double-digit consumer growth year-over-year on the Taobao app, as we implemented user-friendly promotion mechanisms and increased support for merchants that provide high-quality products and customer services.

The number of 88VIP members, our highest spending consumer group, continued to increase by double digits year-over-year, surpassing 56 million. We will continue to focus on improving the retention of 88VIP membership through enhanced value proposition to our most valued customers.

Alibaba International Digital Commerce Group (“AIDC”)

A combination of logistics optimization and investment efficiency enhancement resulted in AIDC’s adjusted EBITA profit of RMB162 million (US$23 million) for the quarter ended September 30, 2025. The unit economics of the AliExpress' Choice business also continued to improve substantially.

This quarter, revenue from AIDC grew 10% year-over-year to RMB34,799 million (US$4,888 million). AIDC's international commerce retail businesses continued to diversify and enrich product offerings by onboarding local merchants and partners, while leveraging the supply chain advantage of the Alibaba ecosystem. AliExpress, in particular, has developed its “AliExpressDirect” model that leverages local inventories in over 30 countries. AliExpress also enhanced the range of our product offerings by launching the “Brand+” program, providing go-to-market solutions to Chinese brands going overseas. In addition, AIDC's international wholesale business further enhanced its AI applications to enhance user experience. During the quarter, our AI-powered B2B procurement engine Accio released its AI Agent version, significantly improving sourcing and procurement efficiency for users.

Cloud Intelligence Group

For the quarter ended September 30, 2025, revenue from Cloud Intelligence Group was RMB39,824 million (US$5,594 million). The year-over-year growth of total revenue, and revenue excluding Alibaba-consolidated subsidiaries, accelerated to 34% and 29% respectively. This momentum was primarily driven by public cloud revenue growth, including the increasing adoption of AI-related products.

AI-related product revenue continued to show strong momentum, delivering another quarter of triple-digit year-over-year growth. We are seeing accelerated adoption of our AI products across a broad range of enterprise customers, with a growing focus on value-added applications including coding assistants. We will continue to invest in anticipation of customer growth and technology innovation, including AI products and services, to increase adoption of AI infrastructure cloud and strengthen our market leadership.

In September at the Apsara Conference, Alibaba Cloud unveiled a major upgrade to our full-stack AI capabilities – spanning from cutting-edge AI foundation models to high-performance AI infrastructure, including servers, high-performance networking, distributed storage, intelligent computing clusters, Platform for AI (PAI), and services for model training and inference. Leveraging our strong AI + Cloud capabilities, Alibaba Cloud continues to contribute actively to open-source community development. As of October 31, 2025, more than 180,000 derivative models had been developed based on the Qwen family on Hugging Face – more than double that of the second player.

Alibaba Cloud continues to lead the market, attracting more customers to adopt our AI products and services. Omdia’s “AI Cloud Market: China – 1H25” reported that Alibaba Cloud ranked first in China’s AI cloud market with the largest share of 35.8%, highlighting our ability to continue leading China's burgeoning AI cloud market through our comprehensive full-stack AI capabilities.

Share Repurchases

During the quarter ended September 30, 2025, we repurchased a total of 17 million ordinary shares (equivalent to approximately 2 million ADSs) for a total of US$253 million. These purchases were made in the U.S. market under our share repurchase program. The remaining amount of Board authorization for our share repurchase program, which is effective through March 2027, was US$19.1 billion as of September 30, 2025.

SEPTEMBER QUARTER SUMMARY FINANCIAL RESULTS

Three months ended September 30,

2024

2025

RMB

RMB

US$

YoY %

Change

(in millions, except percentages and per share amounts)

Revenue

236,503

247,795

34,808

5%

Income from operations

35,246

5,365

754

(85)%(2)

Operating margin

15%

2%

Adjusted EBITDA(1)

47,327

17,256

2,424

(64)%(2)

Adjusted EBITDA margin(1)

20%

7%

Adjusted EBITA(1)

40,561

9,073

1,274

(78)%(2)

Adjusted EBITA margin(1)

17%

4%

Net income

43,547

20,612

2,895

(53)%(2)

Net income attributable to ordinary shareholders

43,874

20,990

2,948

(52)%(2)

Non-GAAP net income(1)

36,518

10,352

1,454

(72)%(2)

Diluted earnings per share(3)

2.27

1.09

0.15

(52)%(2)(4)

Diluted earnings per ADS(3)

18.17

8.75

1.23

(52)%(2)(4)

Non-GAAP diluted earnings per share(1)(3)

1.88

0.55

0.08

(71)%(2)(4)

Non-GAAP diluted earnings per ADS(1)(3)

15.06

4.36

0.61

(71)%(2)(4)

(1)

See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” for more information about the non-GAAP measures referred to within this results announcement.

(2)

The year-over-year decreases were primarily attributable to the investment in quick commerce, user experiences, and technology, partly offset by double-digit revenue growth in Alibaba China E-commerce Group, the improved operating results supported by continued growth in Cloud business, as well as enhanced operating efficiencies across various businesses, while net income attributable to ordinary shareholders and earnings per share/ADS would further take into account the net loss attributable to noncontrolling interests and accretion of mezzanine equity. We excluded non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items from our non-GAAP measurements.

(3)

Each ADS represents eight ordinary shares.

(4)

The year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding.

SEPTEMBER QUARTER SEGMENT RESULTS

Revenue for the quarter ended September 30, 2025 was RMB247,795 million (US$34,808 million), an increase of 5% year-over-year compared to RMB236,503 million in the same quarter of 2024. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 15% year-over-year.

The following table sets forth a breakdown of our revenue by segment for the periods indicated:

Three months ended September 30,

2024

2025

RMB

RMB

US$

YoY %

Change

(in millions, except percentages)

Alibaba China E-commerce Group:

E-commerce

- Customer management

71,667

78,927

11,087

10%

- Direct sales, logistics and others(2)

22,799

24,006

3,372

5%

94,466

102,933

14,459

9%

Quick commerce(3)

14,321

22,906

3,217

60%

China commerce wholesale

5,986

6,739

947

13%

Total Alibaba China E-commerce Group

114,773

132,578

18,623

16%

Alibaba International Digital Commerce Group:

International commerce retail

25,618

28,068

3,943

10%

International commerce wholesale

6,054

6,731

945

11%

Total Alibaba International Digital Commerce Group

31,672

34,799

4,888

10%

Cloud Intelligence Group

29,610

39,824

5,594

34%

All others(4)

84,483

62,969

8,846

(25)%

Unallocated

469

577

81

Inter-segment elimination

(24,504)

(22,952)

(3,224)

Consolidated revenue

236,503

247,795

34,808

5%

(1)

To advance our “user first” strategy and enhance user experience, during the quarter ended June 30, 2025, we undertook a strategic combination of Taobao and Tmall Group, Ele.me and Fliggy into Alibaba China E-commerce Group. We simplified the financial reporting structure by reclassifying Cainiao, Amap and Digital Media and Entertainment Group (rebranded to Hujing Digital Media and Entertainment Group) into “All others”. The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker.

(2)

Direct sales, logistics and others revenue under Alibaba China E-commerce Group primarily represents direct sales businesses of Tmall Supermarket, Tmall Global and other businesses, where revenue and cost of inventory are recorded on a gross basis within the business group, as well as revenue from logistics services and value-added services.

(3)

Quick commerce revenue represents quick commerce business revenue, including revenue generated through “Taobao Instant Commerce” and the Ele.me app. Quick commerce revenue is net of subsidies that are contra revenue.

(4)

All others include Freshippo, Cainiao, Alibaba Health, Hujing Digital Media and Entertainment Group, Amap, Intelligent Information Platform (which mainly consists of UCWeb and Quark businesses), Lingxi Games, DingTalk and other businesses. The majority of revenue within All others consists of direct sales, where revenue and cost of inventory are recorded on a gross basis, and revenue from logistics services. The decrease was primarily due to the revenue decrease as a result of the disposal of Sun Art and Intime businesses, as well as the decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo, Alibaba Health and Amap.

The following table sets forth a breakdown of our adjusted EBITA by segment for the periods indicated:

Three months ended September 30,

2024

2025

RMB

RMB

US$

YoY %

Change(3)

(in millions, except percentages)

Alibaba China E-commerce Group

44,327

10,497

1,474

(76)%

Alibaba International Digital Commerce Group

(2,905)

162

23

N/A

Cloud Intelligence Group

2,661

3,604

506

35%

All others

(1,833)

(3,370)

(473)

(84)%

Unallocated(2)

(1,271)

(1,221)

(172)

Inter-segment elimination

(418)

(599)

(84)

Consolidated adjusted EBITA

40,561

9,073

1,274

(78)%

Less: Non-cash share-based compensation expense

(3,666)

(2,882)

(404)

Less: Amortization of intangible assets

(1,649)

(826)

(116)

Income from operations

35,246

5,365

754

(85)%

Alibaba China E-commerce Group

(i) Segment revenue

E-commerce Business
Revenue from our E-commerce business in the quarter ended September 30, 2025 was RMB102,933 million (US$14,459 million), an increase of 9% compared to RMB94,466 million in the same quarter of 2024.

Customer management revenue increased by 10% year-over-year, primarily due to the improvement of take rate.

Direct sales, logistics and others revenue under E-commerce business in the quarter ended September 30, 2025 was RMB24,006 million (US$3,372 million), an increase of 5% compared to RMB22,799 million in the same quarter of 2024, primarily driven by the increase in revenue from logistics services and value-added services, partly offset by the decrease in revenue from certain direct sales businesses.

Quick Commerce Business
Revenue from our Quick commerce business in the quarter ended September 30, 2025 was RMB22,906 million (US$3,217 million), an increase of 60% compared to RMB14,321 million in the same quarter of 2024, mainly due to order growth as a result of the rollout of “Taobao Instant Commerce” at the end of April 2025.

China Commerce Wholesale Business
Revenue from our China commerce wholesale business in the quarter ended September 30, 2025 was RMB6,739 million (US$947 million), an increase of 13% compared to RMB5,986 million in the same quarter of 2024, primarily due to an increase in revenue from value-added services provided to paying members.

(ii) Segment adjusted EBITA

Alibaba China E-commerce Group adjusted EBITA decreased by 76% to RMB10,497 million (US$1,474 million) in the quarter ended September 30, 2025, compared to RMB44,327 million in the same quarter of 2024, primarily due to the investment in quick commerce, user experiences, and technology, partly offset by double-digit revenue growth in Alibaba China E-commerce Group.

Alibaba International Digital Commerce Group

(i) Segment revenue

International Commerce Retail Business
Revenue from our International commerce retail business in the quarter ended September 30, 2025 was RMB28,068 million (US$3,943 million), an increase of 10% compared to RMB25,618 million in the same quarter of 2024, primarily driven by the increase in revenue contributed by AliExpress and other international businesses. As certain of our international businesses generate revenue in local currencies while our reporting currency is Renminbi, AIDC’s revenue is affected by exchange rate fluctuations.

International Commerce Wholesale Business
Revenue from our International commerce wholesale business in the quarter ended September 30, 2025 was RMB6,731 million (US$945 million), an increase of 11% compared to RMB6,054 million in the same quarter of 2024, primarily due to an increase in revenue generated by cross-border related value-added services.

(ii) Segment adjusted EBITA

Alibaba International Digital Commerce Group adjusted EBITA was a profit of RMB162 million (US$23 million) in the quarter ended September 30, 2025, compared to a loss of RMB2,905 million in the same quarter of 2024, primarily due to significant improvement in AliExpress’ operating efficiency, and enhanced efficiency across various businesses.

Cloud Intelligence Group

(i) Segment revenue

Revenue from Cloud Intelligence Group was RMB39,824 million (US$5,594 million) in the quarter ended September 30, 2025, an increase of 34% compared to RMB29,610 million in the same quarter of 2024. Overall revenue excluding Alibaba-consolidated subsidiaries increased by 29% year-over-year, primarily driven by public cloud revenue growth, including the increasing adoption of AI-related products.

(ii) Segment adjusted EBITA

Cloud Intelligence Group adjusted EBITA increased by 35% to RMB3,604 million (US$506 million) in the quarter ended September 30, 2025, compared to RMB2,661 million in the same quarter of 2024, primarily due to revenue growth and improving operating efficiency, partly offset by the increasing investments in customer growth and technology innovation.

All Others

(i) Segment revenue

Revenue from All others segment was RMB62,969 million (US$8,846 million) in the quarter ended September 30, 2025, a decrease of 25% compared to RMB84,483 million in the same quarter of 2024, primarily due to the revenue decrease as a result of the disposal of Sun Art and Intime businesses, as well as the decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo, Alibaba Health and Amap.

(ii) Segment adjusted EBITA

Adjusted EBITA from All others segment in the quarter ended September 30, 2025 was a loss of RMB3,370 million (US$473 million), compared to a loss of RMB1,833 million in the same quarter of 2024, primarily due to the increased investment in technology businesses, partly offset by the improved operating results of Hujing Digital Media and Entertainment Group and other businesses.

SEPTEMBER QUARTER OTHER FINANCIAL RESULTS

Costs and Expenses

The following tables set forth a breakdown of our costs and expenses, share-based compensation expense, and costs and expenses excluding share-based compensation expense by function for the periods indicated:

Three months ended September 30,

% of

Revenue

YoY

change

2024

2025

RMB

% of

Revenue

RMB

US$

% of

Revenue

(in millions, except percentages)

Costs and expenses:

Cost of revenue

144,029

60.9%

150,781

21,180

60.8%

(0.1)%

Product development expenses

14,182

6.0%

17,095

2,401

6.9%

0.9%

Sales and marketing expenses

32,471

13.7%

66,496

9,341

26.8%

13.1%

General and administrative expenses

9,777

4.1%

7,380

1,037

3.0%

(1.1)%

Amortization of intangible assets

1,649

0.7%

826

116

0.3%

(0.4)%

Total costs and expenses

202,108

242,578

34,075

Share-based compensation expense:

Cost of revenue

619

0.3%

450

63

0.2%

(0.1)%

Product development expenses

1,757

0.7%

1,396

196

0.6%

(0.1)%

Sales and marketing expenses

549

0.2%

500

70

0.2%

0.0%

General and administrative expenses

1,221

0.5%

979

138

0.4%

(0.1)%

Total share-based compensation expense(1)

4,146

3,325

467

Costs and expenses excluding share-based compensation expense:

Cost of revenue

143,410

60.6%

150,331

21,117

60.7%

0.1%

Product development expenses

12,425

5.3%

15,699

2,205

6.3%

1.0%

Sales and marketing expenses

31,922

13.5%

65,996

9,271

26.6%

13.1%

General and administrative expenses

8,556

3.6%

6,401

899

2.6%

(1.0)%

Amortization of intangible assets

1,649

0.7%

826

116

0.3%

(0.4)%

Total costs and expenses excluding share-based compensation expense

197,962

239,253

33,608

Cost of revenue – Cost of revenue in the quarter ended September 30, 2025 was RMB150,781 million (US$21,180 million), or 60.8% of revenue, compared to RMB144,029 million, or 60.9% of revenue, in the same quarter of 2024. Without the effect of share-based compensation expense, cost of revenue as a percentage of revenue would have increased from 60.6% in the quarter ended September 30, 2024 to 60.7% in the quarter ended September 30, 2025, primarily due to higher logistics cost driven by the growth in our quick commerce business, partly offset by the disposal of Sun Art and Intime businesses, decrease in scale of low margin direct sales businesses, improvement in monetization and operating efficiency.

Product development expenses – Product development expenses in the quarter ended September 30, 2025 were RMB17,095 million (US$2,401 million), or 6.9% of revenue, compared to RMB14,182 million, or 6.0% of revenue, in the same quarter of 2024. Without the effect of share-based compensation expense, product development expenses as a percentage of revenue would have increased from 5.3% in the quarter ended September 30, 2024 to 6.3% in the quarter ended September 30, 2025, primarily attributable to our increased investment in technology development.

Sales and marketing expenses – Sales and marketing expenses in the quarter ended September 30, 2025 were RMB66,496 million (US$9,341 million), or 26.8% of revenue, compared to RMB32,471 million, or 13.7% of revenue, in the same quarter of 2024. Without the effect of share-based compensation expense, sales and marketing expenses as a percentage of revenue would have increased from 13.5% in the quarter ended September 30, 2024 to 26.6% in the quarter ended September 30, 2025, primarily attributable to the investment in user experiences of Alibaba China E-commerce Group.

General and administrative expenses – General and administrative expenses in the quarter ended September 30, 2025 were RMB7,380 million (US$1,037 million), or 3.0% of revenue, compared to RMB9,777 million, or 4.1% of revenue, in the same quarter of 2024. Without the effect of share-based compensation expense, general and administrative expenses as a percentage of revenue would have decreased from 3.6% in the quarter ended September 30, 2024 to 2.6% in the quarter ended September 30, 2025, primarily due to our improved cost control measures.

Share-based compensation expense – Total share-based compensation expense included in the cost and expense items above in the quarter ended September 30, 2025 was RMB3,325 million (US$467 million), compared to RMB4,146 million in the same quarter of 2024.

The following table sets forth our analysis of share-based compensation expense for the quarters indicated by type of share-based awards:

Three months ended September 30,

2024

2025

RMB

RMB

US$

YoY %

Change

(in millions, except percentages)

By type of awards:

Alibaba Group share-based awards(1)

2,786

2,343

329

(16)%

Others(2)

1,360

982

138

(28)%

Total share-based compensation expense(3)

4,146

3,325

467

(20)%

Share-based compensation expense decreased in the quarter ended September 30, 2025 compared to the same quarter of 2024. The decrease in share-based compensation expense related to Alibaba Group share-based awards was primarily due to the decrease in the number of awards granted as we have increased the proportion of long-term cash incentives granted after considering the macroeconomic environment and the general trends in the talent market.

We expect that our share-based compensation expense will continue to be affected by changes in the fair value of the underlying awards and the quantity of awards we grant in the future.

Amortization of intangible assets – Amortization of intangible assets in the quarter ended September 30, 2025 was RMB826 million (US$116 million), a decrease of 50% from RMB1,649 million in the same quarter of 2024, primarily due to full amortization of certain intangible assets.

Income from operations and operating margin

Income from operations in the quarter ended September 30, 2025 was RMB5,365 million (US$754 million), or 2% of revenue, a decrease of 85% compared to RMB35,246 million, or 15% of revenue, in the same quarter of 2024, primarily due to the decrease in adjusted EBITA.

Adjusted EBITDA and Adjusted EBITA

Adjusted EBITDA decreased 64% year-over-year to RMB17,256 million (US$2,424 million) in the quarter ended September 30, 2025, compared to RMB47,327 million in the same quarter of 2024. Adjusted EBITA decreased 78% year-over-year to RMB9,073 million (US$1,274 million) in the quarter ended September 30, 2025, compared to RMB40,561 million in the same quarter of 2024, primarily attributable to the investment in quick commerce, user experiences, and technology, partly offset by double-digit revenue growth in Alibaba China E-commerce Group, the improved operating results supported by continued growth in Cloud business, as well as enhanced operating efficiencies across various businesses. A reconciliation of net income to adjusted EBITDA and adjusted EBITA is included at the end of this results announcement.

Adjusted EBITA by segment

Adjusted EBITA by segment as well as a reconciliation of income from operations to adjusted EBITA are set forth in the section entitled “September Quarter Segment Results” above.

Interest and investment income, net

Interest and investment income, net in the quarter ended September 30, 2025 was RMB20,092 million (US$2,822 million), an increase of 8% compared to RMB18,607 million in the same quarter of 2024, primarily due to mark-to-market changes, partly offset by the increase in impairment of our investments.

The above-mentioned investment gains and losses were excluded from our non-GAAP net income.

Other (expense) income, net

Other (expense) income, net in the quarter ended September 30, 2025 was an income of RMB981 million (US$138 million), compared to expense of RMB1,478 million in the same quarter of 2024, primarily due to the decrease in net exchange loss in this quarter compared to the same quarter last year, arising from the exchange rate fluctuation between Renminbi and U.S. dollar.

Income tax expenses

Income tax expenses in the quarter ended September 30, 2025 were RMB5,550 million (US$780 million), compared to RMB7,379 million in the same quarter of 2024.

Share of results of equity method investees

We record our share of results of all equity method investees one quarter in arrears. Share of results of equity method investees in the quarter ended September 30, 2025 was RMB2,241 million (US$315 million), an increase of 129% compared to RMB978 million in the same quarter of 2024. The following table sets forth a breakdown of share of results of equity method investees for the periods indicated:

Three months ended September 30,

2024

2025

RMB

RMB

US$

(in millions)

Share of profit (loss) of equity method investees

- Ant Group

2,478

2,733

384

- Others

(746)

671

94

Impairment loss

–

(5)

(1)

Others(1)

(754)

(1,158)

(162)

Total

978

2,241

315

Net income and Non-GAAP net income

Our net income in the quarter ended September 30, 2025 was RMB20,612 million (US$2,895 million), compared to RMB43,547 million in the same quarter of 2024, primarily attributable to the decrease in income from operations.

Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP net income in the quarter ended September 30, 2025 was RMB10,352 million (US$1,454 million), a decrease of 72% compared to RMB36,518 million in the same quarter of 2024, primarily attributable to the investment in quick commerce, user experiences, and technology, partly offset by double-digit revenue growth in Alibaba China E-commerce Group, the improved operating results supported by continued growth in Cloud business, as well as enhanced operating efficiencies across various businesses. A reconciliation of net income to non-GAAP net income is included at the end of this results announcement.

Net income attributable to ordinary shareholders

Net income attributable to ordinary shareholders in the quarter ended September 30, 2025 was RMB20,990 million (US$2,948 million), compared to RMB43,874 million in the same quarter of 2024, primarily attributable to the decrease in income from operations.

Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/share

Diluted earnings per ADS in the quarter ended September 30, 2025 was RMB8.75 (US$1.23), compared to RMB18.17 in the same quarter of 2024. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP diluted earnings per ADS in the quarter ended September 30, 2025 was RMB4.36 (US$0.61), a decrease of 71% compared to RMB15.06 in the same quarter of 2024.

Diluted earnings per share in the quarter ended September 30, 2025 was RMB1.09 (US$0.15 or HK$1.19), compared to RMB2.27 in the same quarter of 2024. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP diluted earnings per share in the quarter ended September 30, 2025 was RMB0.55 (US$0.08 or HK$0.60), a decrease of 71% compared to RMB1.88 in the same quarter of 2024.

A reconciliation of diluted earnings per ADS/share to non-GAAP diluted earnings per ADS/share is included at the end of this results announcement. Each ADS represents eight ordinary shares.

Net cash provided by operating activities and free cash flow

During the quarter ended September 30, 2025, net cash provided by operating activities was RMB10,099 million (US$1,419 million), a decrease of 68% compared to RMB31,438 million in the same quarter of 2024. Free cash flow, a non-GAAP measurement of liquidity, was an outflow of RMB21,840 million (US$3,068 million), compared to an inflow of RMB13,735 million in the same quarter of 2024. The decrease in free cash flow was mainly attributed to the investment in quick commerce and the increase in our cloud infrastructure expenditure. A reconciliation of net cash provided by operating activities to free cash flow is included at the end of this results announcement.

Net cash used in investing activities

During the quarter ended September 30, 2025, net cash used in investing activities of RMB69,652 million (US$9,784 million) primarily reflected an increase in short-term investments and other treasury investments by RMB59,135 million (US$8,307 million) and capital expenditures of RMB31,501 million (US$4,425 million), partly offset by net cash inflow of RMB20,682 million (US$2,905 million) for investment and acquisition activities.

Net cash provided by financing activities

During the quarter ended September 30, 2025, net cash provided by financing activities of RMB10,902 million (US$1,531 million) primarily reflected cash provided by net proceeds from issuance of convertible unsecured senior notes and payments for capped call transactions of RMB20,994 million (US$2,949 million), net proceeds from bank borrowings of RMB14,517 million (US$2,039 million), and net proceeds from issuance of exchangeable bonds of RMB10,986 million (US$1,543 million), partly offset by dividend payment of RMB33,313 million (US$4,679 million) and repurchase of ordinary shares of RMB1,798 million (US$253 million).

Employees

As of September 30, 2025, we had a total of 126,661 employees, compared to 123,711 as of June 30, 2025.

SIX MONTHS ENDED SEPTEMBER SUMMARY FINANCIAL RESULTS

Six months ended September 30,

2024

2025

RMB

RMB

US$

YoY %

Change

(in millions, except percentages and per share amounts)

Revenue

479,739

495,447

69,595

3%

Income from operations

71,235

40,353

5,668

(43)%(2)

Operating margin

15%

8%

Adjusted EBITDA(1)

98,488

62,991

8,848

(36)%(3)

Adjusted EBITDA margin(1)

21%

13%

Adjusted EBITA(1)

85,596

47,917

6,731

(44)%(3)

Adjusted EBITA margin(1)

18%

10%

Net income

67,569

62,994

8,849

(7)%(4)

Net income attributable to ordinary shareholders

68,143

64,106

9,005

(6)%(4)

Non-GAAP net income(1)

77,209

43,862

6,161

(43)%(3)

Diluted earnings per share(5)

3.50

3.34

0.47

(5)%(4)(6)

Diluted earnings per ADS(5)

28.00

26.73

3.75

(5)%(4)(6)

Non-GAAP diluted earnings per share(1)(5)

3.94

2.39

0.34

(39)%(3)(6)

Non-GAAP diluted earnings per ADS(1)(5)

31.50

19.10

2.68

(39)%(3)(6)

(1)

See the sections entitled “Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” for more information about the non-GAAP measures referred to within this results announcement.

(2)

The year-over-year decrease was primarily due to the decrease in adjusted EBITA, partly offset by a one-time provision in the same period last year (See the section entitled “Six Months Ended September Other Financial Results” for more information).

(3)

The year-over-year decreases were mainly attributable to the investment in quick commerce, user experiences, and technology, partly offset by double-digit revenue growth in Alibaba China E-commerce Group, the improved operating results supported by continued growth in Cloud business, as well as enhanced operating efficiencies across various businesses.

(4)

The year-over-year decreases were mainly attributable to the decrease in income from operations, partly offset by the mark-to-market changes from our equity investments, gain from the disposal of local consumer service business of Trendyol, and the decrease in both the impairment of our investments and net exchange loss, while net income attributable to ordinary shareholders and earnings per share/ADS would further take into account the net loss (income) attributable to noncontrolling interests and (accretion) reversal of accretion of mezzanine equity. We excluded non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items from our non-GAAP measurements.

(5)

Each ADS represents eight ordinary shares.

(6)

The year-over-year percentages as stated are calculated based on the exact amount and there may be minor differences from the year-over-year percentages calculated based on the RMB amounts after rounding.

SIX MONTHS ENDED SEPTEMBER SEGMENT RESULTS

Revenue for the six months ended September 30, 2025 was RMB495,447 million (US$69,595 million), an increase of 3% year-over-year compared to RMB479,739 million in the same period of 2024. Excluding revenue from the disposed businesses of Sun Art and Intime, revenue on a like-for-like basis would have grown by 12% year-over-year.

The following table sets forth a breakdown of our revenue by segment for the periods indicated:

Six months ended September 30,

2024

2025

RMB

RMB

US$

YoY %

Change

(in millions, except percentages)

Alibaba China E-commerce Group:

E-commerce

- Customer management

152,755

168,179

23,624

10%

- Direct sales, logistics and others(2)

50,233

53,331

7,492

6%

202,988

221,510

31,116

9%

Quick commerce(3)

27,517

37,690

5,294

37%

China commerce wholesale

11,938

13,450

1,889

13%

Total Alibaba China E-commerce Group

242,443

272,650

38,299

12%

Alibaba International Digital Commerce Group:

International commerce retail

49,309

56,463

7,931

15%

International commerce wholesale

11,656

13,077

1,837

12%

Total Alibaba International Digital Commerce Group

60,965

69,540

9,768

14%

Cloud Intelligence Group

56,159

73,222

10,285

30%

All others(4)

165,837

121,568

17,077

(27)%

Unallocated

888

1,096

154

Inter-segment elimination

(46,553)

(42,629)

(5,988)

Consolidated revenue

479,739

495,447

69,595

3%

(1)

To advance our “user first” strategy and enhance user experience, during the quarter ended June 30, 2025, we undertook a strategic combination of Taobao and Tmall Group, Ele.me and Fliggy into Alibaba China E-commerce Group. We simplified the financial reporting structure by reclassifying Cainiao, Amap and Digital Media and Entertainment Group (rebranded to Hujing Digital Media and Entertainment Group) into “All others”. The above presentation has been updated to conform with the new reporting structure, as reviewed by our chief operating decision maker.

(2)

Direct sales, logistics and others revenue under Alibaba China E-commerce Group primarily represents direct sales businesses of Tmall Supermarket, Tmall Global and other businesses, where revenue and cost of inventory are recorded on a gross basis within the business group, as well as revenue from logistics services and value-added services.

(3)

Quick commerce revenue represents quick commerce business revenue, including revenue generated through “Taobao Instant Commerce” and the Ele.me app. Quick commerce revenue is net of subsidies that are contra revenue.

(4)

All others include Freshippo, Cainiao, Alibaba Health, Hujing Digital Media and Entertainment Group, Amap, Intelligent Information Platform (which mainly consists of UCWeb and Quark businesses), Lingxi Games, DingTalk and other businesses. The majority of revenue within All others consists of direct sales, where revenue and cost of inventory are recorded on a gross basis, and revenue from logistics services. The decrease was primarily due to the revenue decrease as a result of the disposal of Sun Art and Intime businesses, as well as the decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo, Alibaba Health and Amap.

The following table sets forth a breakdown of our adjusted EBITA by segment for the periods indicated:

Six months ended September 30,

2024

2025

RMB

RMB

US$

YoY %

Change(3)

(in millions, except percentages)

Alibaba China E-commerce Group

93,080

48,886

6,867

(47)%

Alibaba International Digital Commerce Group

(6,611)

103

14

N/A

Cloud Intelligence Group

4,998

6,558

921

31%

All others

(2,910)

(4,785)

(672)

(64)%

Unallocated(2)

(2,142)

(1,640)

(230)

Inter-segment elimination

(819)

(1,205)

(169)

Consolidated adjusted EBITA

85,596

47,917

6,731

(44)%

Less: Non-cash share-based compensation expense

(7,775)

(6,076)

(854)

Less: Amortization and impairment of intangible assets, and others

(3,441)

(1,488)

(209)

Less: Provision for the shareholder class action lawsuits

(3,145)

–

–

Income from operations

71,235

40,353

5,668

(43)%

Alibaba China E-commerce Group

(i) Segment revenue

E-commerce Business
Revenue from our E-commerce business in the six months ended September 30, 2025 was RMB221,510 million (US$31,116 million), an increase of 9% compared to RMB202,988 million in the same period of 2024.

Customer management revenue increased by 10% year-over-year, primarily due to the improvement of take rate.

Direct sales, logistics and others revenue under E-commerce business in the six months ended September 30, 2025 was RMB53,331 million (US$7,492 million), an increase of 6% compared to RMB50,233 million in the same period of 2024, primarily driven by the increase in revenue from logistics services and value-added services, partly offset by the decrease in revenue from certain direct sales businesses.

Quick Commerce Business
Revenue from our Quick commerce business in the six months ended September 30, 2025 was RMB37,690 million (US$5,294 million), an increase of 37% compared to RMB27,517 million in the same period of 2024, mainly due to order growth as a result of the rollout of “Taobao Instant Commerce” at the end of April 2025.

China Commerce Wholesale Business
Revenue from our China commerce wholesale business in the six months ended September 30, 2025 was RMB13,450 million (US$1,889 million), an increase of 13% compared to RMB11,938 million in the same period of 2024, primarily due to an increase in revenue from value-added services provided to paying members.

(ii) Segment adjusted EBITA

Alibaba China E-commerce Group adjusted EBITA decreased by 47% to RMB48,886 million (US$6,867 million) in the six months ended September 30, 2025, compared to RMB93,080 million in the same period of 2024, primarily due to the investment in quick commerce, user experiences, and technology, partly offset by double-digit revenue growth in Alibaba China E-commerce Group.

Alibaba International Digital Commerce Group

(i) Segment revenue

International Commerce Retail Business
Revenue from our International commerce retail business in the six months ended September 30, 2025 was RMB56,463 million (US$7,931 million), an increase of 15% compared to RMB49,309 million in the same period of 2024, primarily driven by the increase in revenue contributed by AliExpress and other international businesses. As certain of our international businesses generate revenue in local currencies while our reporting currency is Renminbi, AIDC’s revenue is affected by exchange rate fluctuations.

International Commerce Wholesale Business
Revenue from our International commerce wholesale business in the six months ended September 30, 2025 was RMB13,077 million (US$1,837 million), an increase of 12% compared to RMB11,656 million in the same period of 2024, primarily due to an increase in revenue generated by cross-border related value-added services.

(ii) Segment adjusted EBITA

Alibaba International Digital Commerce Group adjusted EBITA was a profit of RMB103 million (US$14 million) in the six months ended September 30, 2025, compared to a loss of RMB6,611 million in the same period of 2024, primarily due to significant improvement in AliExpress’ operating efficiency, and enhanced efficiency across various businesses.

Cloud Intelligence Group

(i) Segment revenue

Revenue from Cloud Intelligence Group was RMB73,222 million (US$10,285 million) in the six months ended September 30, 2025, an increase of 30% compared to RMB56,159 million in the same period of 2024. Overall revenue excluding Alibaba-consolidated subsidiaries increased by 28% year-over-year, primarily driven by public cloud revenue growth, including the increasing adoption of AI-related products.

(ii) Segment adjusted EBITA

Cloud Intelligence Group adjusted EBITA increased by 31% to RMB6,558 million (US$921 million) in the six months ended September 30, 2025, compared to RMB4,998 million in the same period of 2024, primarily due to revenue growth and improving operating efficiency, partly offset by the increasing investments in customer growth and technology innovation.

All Others

(i) Segment revenue

Revenue from All others segment was RMB121,568 million (US$17,077 million) in the six months ended September 30, 2025, a decrease of 27% compared to RMB165,837 million in the same period of 2024, primarily due to the revenue decrease as a result of the disposal of Sun Art and Intime businesses, as well as the decrease in revenue from Cainiao, partly offset by the increase in revenue from Freshippo, Alibaba Health and Amap.

(ii) Segment adjusted EBITA

Adjusted EBITA from All others segment in the six months ended September 30, 2025 was a loss of RMB4,785 million (US$672 million), compared to a loss of RMB2,910 million in the same period of 2024, primarily due to the increased investment in technology businesses, partly offset by the improved operating results of Freshippo, Hujing Digital Media and Entertainment Group and Alibaba Health.

SIX MONTHS ENDED SEPTEMBER OTHER FINANCIAL RESULTS

Costs and Expenses

The following tables set forth a breakdown of our costs and expenses, share-based compensation expense, and costs and expenses excluding share-based compensation expense by function for the periods indicated:

Six months ended September 30,

% of

Revenue

YoY

change

2024

2025

RMB

% of

Revenue

RMB

US$

% of

Revenue

(in millions, except percentages)

Costs and expenses:

Cost of revenue

290,135

60.5%

287,210

40,344

58.0%

(2.5)%

Product development expenses

27,555

5.7%

32,096

4,509

6.5%

0.8%

Sales and marketing expenses

65,167

13.6%

119,674

16,811

24.2%

10.6%

General and administrative expenses

23,057

4.8%

14,778

2,076

3.0%

(1.8)%

Amortization and impairment of intangible assets

3,441

0.7%

1,633

229

0.3%

(0.4)%

Total costs and expenses

409,355

455,391

63,969

Share-based compensation expense:

Cost of revenue

1,205

0.3%

913

128

0.2%

(0.1)%

Product development expenses

3,560

0.7%

2,862

402

0.6%

(0.1)%

Sales and marketing expenses

948

0.2%

958

135

0.2%

0.0%

General and administrative expenses

2,564

0.5%

2,137

300

0.4%

(0.1)%

Total share-based compensation expense(1)

8,277

6,870

965

Costs and expenses excluding share-based compensation expense:

Cost of revenue

288,930

60.2%

286,297

40,216

57.8%

(2.4)%

Product development expenses

23,995

5.0%

29,234

4,107

5.9%

0.9%

Sales and marketing expenses

64,219

13.4%

118,716

16,676

24.0%

10.6%

General and administrative expenses

20,493

4.3%

12,641

1,776

2.6%

(1.7)%

Amortization and impairment of intangible assets

3,441

0.7%

1,633

229

0.3%

(0.4)%

Total costs and expenses excluding share-based compensation expense

401,078

448,521

63,004

Cost of revenue – Cost of revenue in the six months ended September 30, 2025 was RMB287,210 million (US$40,344 million), or 58.0% of revenue, compared to RMB290,135 million, or 60.5% of revenue, in the same period of 2024. Without the effect of share-based compensation expense, cost of revenue as a percentage of revenue would have decreased from 60.2% in the same period of 2024 to 57.8% in the six months ended September 30, 2025, primarily due to the disposal of Sun Art and Intime businesses, decrease in scale of low margin direct sales businesses, improvement in monetization and operating efficiency, partly offset by higher logistics cost driven by the growth in our quick commerce business.

Product development expenses – Product development expenses in the six months ended September 30, 2025 were RMB32,096 million (US$4,509 million), or 6.5% of revenue, compared to RMB27,555 million, or 5.7% of revenue, in the same period of 2024. Without the effect of share-based compensation expense, product development expenses as a percentage of revenue would have increased from 5.0% in the same period of 2024 to 5.9% in the six months ended September 30, 2025, primarily attributable to our increased investment in technology development.

Sales and marketing expenses – Sales and marketing expenses in the six months ended September 30, 2025 were RMB119,674 million (US$16,811 million), or 24.2% of revenue, compared to RMB65,167 million, or 13.6% of revenue, in the same period of 2024. Without the effect of share-based compensation expense, sales and marketing expenses as a percentage of revenue would have increased from 13.4% in the same period of 2024 to 24.0% in the six months ended September 30, 2025, primarily attributable to the investment in user experiences of Alibaba China E-commerce Group.

General and administrative expenses – General and administrative expenses in the six months ended September 30, 2025 were RMB14,778 million (US$2,076 million), or 3.0% of revenue, compared to RMB23,057 million, or 4.8% of revenue, in the same period of 2024. Without the effect of share-based compensation expense, general and administrative expenses as a percentage of revenue would have decreased from 4.3% in the same period of 2024 to 2.6% in the six months ended September 30, 2025, primarily due to a one-time provision for the shareholder class action lawsuits in the same period last year and our improved cost control measures.

Share-based compensation expense – Total share-based compensation expense included in the cost and expense items above in the six months ended September 30, 2025 was RMB6,870 million (US$965 million), compared to RMB8,277 million in the same period of 2024.

The following table sets forth our analysis of share-based compensation expense for the quarters indicated by type of share-based awards:

Six months ended September 30,

2024

2025

RMB

RMB

US$

YoY %

Change

(in millions, except percentages)

By type of awards:

Alibaba Group share-based awards(1)

5,877

4,664

655

(21)%

Others(2)

2,400

2,206

310

(8)%

Total share-based compensation expense(3)

8,277

6,870

965

(17)%

Share-based compensation expense decreased in the six months ended September 30, 2025 compared to the same period of 2024. This decrease was primarily due to the decrease in the number of Alibaba Group share-based awards granted as we have increased the proportion of long-term cash incentives granted after considering the macroeconomic environment and the general trends in the talent market.

We expect that our share-based compensation expense will continue to be affected by changes in the fair value of the underlying awards and the quantity of awards we grant in the future.

Amortization and impairment of intangible assets – Amortization and impairment of intangible assets in the six months ended September 30, 2025 was RMB1,633 million (US$229 million), a decrease of 53% from RMB3,441 million in the same period of 2024, primarily due to full amortization of certain intangible assets.

Income from operations and operating margin

Income from operations in the six months ended September 30, 2025 was RMB40,353 million (US$5,668 million), or 8% of revenue, a decrease of 43% compared to RMB71,235 million, or 15% of revenue, in the same period of 2024, primarily due to the decrease in adjusted EBITA, partly offset by a one-time provision in the same period last year.

Adjusted EBITDA and Adjusted EBITA

Adjusted EBITDA decreased 36% year-over-year to RMB62,991 million (US$8,848 million) in the six months ended September 30, 2025, compared to RMB98,488 million in the same period of 2024. Adjusted EBITA decreased 44% year-over-year to RMB47,917 million (US$6,731 million) in the six months ended September 30, 2025, compared to RMB85,596 million in the same period of 2024, primarily attributable to the investment in quick commerce, user experiences, and technology, partly offset by double-digit revenue growth in Alibaba China E-commerce Group, the improved operating results supported by continued growth in Cloud business, as well as enhanced operating efficiencies across various businesses. A reconciliation of net income to adjusted EBITDA and adjusted EBITA is included at the end of this results announcement.

Adjusted EBITA by segment

Adjusted EBITA by segment as well as a reconciliation of income from operations to adjusted EBITA are set forth in the section entitled “Six Months Ended September Segment Results” above.

Interest and investment income, net

Interest and investment income, net in the six months ended September 30, 2025 was RMB37,468 million (US$5,263 million), an increase of 119% compared to RMB17,129 million in the same period of 2024, primarily due to mark-to-market changes from our equity investments, gain from the disposal of local consumer service business of Trendyol, and the decrease in impairment of our investments.

The above-mentioned investment gains and losses were excluded from our non-GAAP net income.

Other (expense) income, net

Other (expense) income, net in the six months ended September 30, 2025 was an income of RMB1,329 million (US$187 million), compared to expense of RMB1,221 million in the same period of 2024, was primarily due to the decrease in net exchange loss in the six months ended September 30, 2025 compared to the same period last year, arising from the exchange rate fluctuation between Renminbi and U.S. dollar.

Income tax expenses

Income tax expenses in the six months ended September 30, 2025 were RMB14,415 million (US$2,024 million), compared to RMB17,442 million in the same period of 2024.

Share of results of equity method investees

Share of results of equity method investees in the six months ended September 30, 2025 was RMB3,254 million (US$457 million), an increase of 31% compared to RMB2,483 million in the same period of 2024. The following table sets forth a breakdown of share of results of equity method investees for the periods indicated:

Six months ended September 30,

2024

2025

RMB

RMB

US$

(in millions)

Share of profit (loss) of equity method investees

- Ant Group

6,395

4,280

601

- Others

(1,334)

1,126

158

Impairment loss

(2,157)

(5)

(1)

Others(1)

(421)

(2,147)

(301)

Total

2,483

3,254

457

We record our share of results of all equity method investees one quarter in arrears. The share of net profit of other equity method investees recorded in the six months ended September 30 2025, compared to the share of net losses in the same period last year, was primarily attributable to the overall improvement in the financial performance of our equity method investees. This was partly offset by the decrease in share of profit of Ant Group, which was mainly attributable to investments in new growth initiatives and technologies.

Net income and Non-GAAP net income

Our net income in the six months ended September 30, 2025 was RMB62,994 million (US$8,849 million), compared to RMB67,569 million in the same period of 2024, primarily attributable to the decrease in income from operations, partly offset by the mark-to-market changes from our equity investments, gain from the disposal of local consumer service business of Trendyol and the decrease in both the impairment of our investments and net exchange loss.

Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP net income in the six months ended September 30, 2025 was RMB43,862 million (US$6,161 million), a decrease of 43% compared to RMB77,209 million in the same period of 2024, primarily attributable to the investment in quick commerce, user experiences, and technology, partly offset by double-digit revenue growth in Alibaba China E-commerce Group, the improved operating results supported by continued growth in Cloud business, as well as enhanced operating efficiencies across various businesses. A reconciliation of net income to non-GAAP net income is included at the end of this results announcement.

Net income attributable to ordinary shareholders

Net income attributable to ordinary shareholders in the six months ended September 30, 2025 was RMB64,106 million (US$9,005 million), compared to RMB68,143 million in the same period of 2024, primarily attributable to the decrease in income from operations, partly offset by the mark-to-market changes from our equity investments, gain from the disposal of local consumer service business of Trendyol and the decrease in both the impairment of our investments and net exchange loss.

Diluted earnings per ADS/share and non-GAAP diluted earnings per ADS/share

Diluted earnings per ADS in the six months ended September 30, 2025 was RMB26.73 (US$3.75), compared to RMB28.00 in the same period of 2024. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP diluted earnings per ADS in the six months ended September 30, 2025 was RMB19.10 (US$2.68), a decrease of 39% compared to RMB31.50 in the same period of 2024.

Diluted earnings per share in the six months ended September 30, 2025 was RMB3.34 (US$0.47 or HK$3.66), compared to RMB3.50 in the same period of 2024. Excluding non-cash share-based compensation expense, gains/losses of investments, impairment of goodwill and intangible assets, and certain other items, non-GAAP diluted earnings per share in the six months ended September 30, 2025 was RMB2.39 (US$0.34 or HK$2.62), a decrease of 39% compared to RMB3.94 in the same period of 2024.

A reconciliation of diluted earnings per ADS/share to non-GAAP diluted earnings per ADS/share is included at the end of this results announcement. Each ADS represents eight ordinary shares.

Cash and cash equivalents, short-term investments and other treasury investments

As of September 30, 2025, cash and cash equivalents, short-term investments and other treasury investments included in equity securities and other investments on the consolidated balance sheets, of which that are unrestricted for withdrawal and use, were RMB573,889 million (US$80,614 million), compared to RMB597,132 million as of March 31, 2025. Other treasury investments consist of fixed deposits, certificate of deposits and marketable debt securities with original maturities over one year for treasury purposes. The decrease in cash and cash equivalents, short-term investments and other treasury investments of RMB23,243 million during the six months ended September 30, 2025, was primarily due to (i) free cash flow outflow of RMB40,655 million (US$5,711 million), (ii) dividend payment of RMB33,621 million (US$4,723 million), (iii) cash used in repurchase of ordinary shares of RMB7,638 million (US$1,073 million), partly offset by (iv) net proceeds from issuance of convertible unsecured senior notes and payments for capped call transactions of RMB20,994 million (US$2,949 million), (v) net proceeds from bank borrowings of RMB17,804 million (US$2,501 million), (vi) net proceeds from issuance of exchangeable bonds of RMB10,986 million (US$1,543 million) and (vii) proceeds of RMB12,026 million (US$1,689 million) from the disposal of Intime and local consumer service business of Trendyol.

Net cash provided by operating activities and free cash flow

During the six months ended September 30, 2025, net cash provided by operating activities was RMB30,771 million (US$4,322 million), a decrease of 53% compared to RMB65,074 million in the same period of 2024. Free cash flow, a non-GAAP measurement of liquidity, was an outflow of RMB40,655 million (US$5,711 million), compared to an inflow of RMB31,107 million in the same period of 2024. The decrease in free cash flow was mainly attributed to the increase in our cloud infrastructure expenditure and the investment in quick commerce. A reconciliation of net cash provided by operating activities to free cash flow is included at the end of this results announcement.

Net cash used in investing activities

During the six months ended September 30, 2025, net cash used in investing activities of RMB51,324 million (US$7,209 million) primarily reflected capital expenditures of RMB70,177 million (US$9,858 million) and net increase in short-term investments and other treasury investments by RMB11,119 million (US$1,562 million), partly offset by net cash inflow of RMB29,710 million (US$4,173 million) for investment and acquisition activities.

Net cash provided by financing activities

During the six months ended September 30, 2025, net cash provided by financing activities of RMB8,171 million (US$1,148 million) primarily reflected cash provided by net proceeds from issuance of convertible unsecured senior notes and payments for capped call transactions of RMB20,994 million (US$2,949 million), net proceeds from bank borrowings of RMB17,804 million (US$2,501 million), and net proceeds from issuance of exchangeable bonds of RMB10,986 million (US$1,543 million), partly offset by dividend payment of RMB33,621 million (US$4,723 million), and cash used in repurchase of ordinary shares of RMB7,638 million (US$1,073 million).

Employees

As of September 30, 2025, we had a total of 126,661 employees, compared to 124,320 as of March 31, 2025.

WEBCAST AND CONFERENCE CALL INFORMATION

Alibaba Group’s management will hold a conference call to discuss the financial results at 7:30 a.m. U.S. Eastern Time (8:30 p.m. Hong Kong Time) on Tuesday, November 25, 2025.

All participants must pre-register to join this conference call using the Participant Registration link below:

English: https://s1.c-conf.com/diamondpass/10051211-a7c56v.html

Chinese: https://s1.c-conf.com/diamondpass/10051210-8u7y6t.html

Upon registration, each participant will receive details for the conference call, including dial-in numbers, conference call passcode and a unique access PIN. To join the conference, please dial the number provided, enter the passcode followed by your PIN, and you will join the conference.

A live webcast of the earnings conference call can be accessed at https://www.alibabagroup.com/en/ir/earnings. An archived webcast will be available through the same link following the call. A replay of the conference call will be available for one week from the date of the conference (Dial-in number: +1 855 883 1031; English conference PIN 10051211; Chinese conference PIN 10051210).

Please visit Alibaba Group’s Investor Relations website at https://www.alibabagroup.com/en/ir/home on November 25, 2025 to view the earnings release and accompanying slides prior to the conference call.

ABOUT ALIBABA GROUP

Alibaba Group is a global technology company focused on e-commerce and cloud computing. We enable merchants, brands and retailers to market, sell and engage with consumers by providing digital and logistics infrastructure, efficiency tools and vast marketing reach. We empower enterprises with our leading cloud infrastructure, services and work collaboration capabilities to facilitate their digital transformation and grow their businesses.

EXCHANGE RATE INFORMATION

This results announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) and Hong Kong dollars (“HK$”) for the convenience of the reader. Unless otherwise stated, all translations of RMB into US$ were made at RMB7.119 to US$1.00, the exchange rate on September 30, 2025 as set forth in the H.10 statistical release of the Federal Reserve Board, and all translations of RMB into HK$ were made at RMB0.91298 to HK$1.00, the middle rate on September 30, 2025 as published by the People’s Bank of China. The percentages stated in this results announcement are calculated based on the RMB amounts and there may be minor differences due to rounding.

SAFE HARBOR STATEMENTS

This results announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “future,” “aim,” “estimate,” “intend,” “seek,” “plan,” “believe,” “potential,” “continue,” “ongoing,” “target,” “guidance,” “is/are likely to” and similar statements. In addition, statements that are not historical facts, including statements about Alibaba’s strategies and business and operational plans, Alibaba’s beliefs, expectations and guidance regarding the growth of its business, its operating and financial results, return on investments, strategic investments and dispositions and share repurchases, and the business outlook and quotations from management in this results announcement, are or contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to: Alibaba’s ability to compete, innovate and maintain or grow its business; risks associated with sustained investments in Alibaba’s businesses; risks related to strategic transactions; fluctuations in general economic and business conditions in China and globally; uncertainties arising from competition among countries and geopolitical tensions, including national trade, investment, protectionist or other policies and export control, economic or trade sanctions; changes to our shareholder return initiatives; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Alibaba’s filings with the U.S. Securities and Exchange Commission and announcements on the website of The Stock Exchange of Hong Kong Limited. All information provided in this results announcement is as of the date of this results announcement and are based on assumptions that we believe to be reasonable as of this date, and Alibaba does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

NON-GAAP FINANCIAL MEASURES

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: for our consolidated results, adjusted EBITDA (including adjusted EBITDA margin), adjusted EBITA (including adjusted EBITA margin), non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow. For more information on these non-GAAP financial measures, please refer to the table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement.

We believe that adjusted EBITDA, adjusted EBITA, non-GAAP net income and non-GAAP diluted earnings per share/ADS help identify underlying trends in our business that could otherwise be distorted by the effect of certain income or expenses that we include in income from operations, net income and diluted earnings per share/ADS. We believe that these non-GAAP measures provide useful information about our core operating results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. We present three different income measures, namely adjusted EBITDA, adjusted EBITA and non-GAAP net income in order to provide more information and greater transparency to investors about our operating results.

We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic corporate transactions, including investing in our new business initiatives, making strategic investments and acquisitions and strengthening our balance sheet.

Adjusted EBITDA, adjusted EBITA, non-GAAP net income, non-GAAP diluted earnings per share/ADS and free cash flow should not be considered in isolation or construed as an alternative to income from operations, net income, diluted earnings per share/ADS, cash flows or any other measure of performance or as an indicator of our operating performance. These non-GAAP financial measures presented here do not have standardized meanings prescribed by U.S. GAAP and may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data.

Adjusted EBITDA represents net income before interest and investment income, net, interest expense, other income (expense), net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, depreciation and impairment of property and equipment, and operating lease cost relating to land use rights, and others (including provision in relation to matters outside the ordinary course of business), which we do not believe are reflective of our core operating performance during the periods presented.

Adjusted EBITA represents net income before interest and investment income, net, interest expense, other income (expense), net, income tax expenses, share of results of equity method investees, certain non-cash expenses, consisting of share-based compensation expense, amortization and impairment of intangible assets, impairment of goodwill, and others (including provision in relation to matters outside the ordinary course of business), which we do not believe are reflective of our core operating performance during the periods presented.

Non-GAAP net income represents net income before non-cash share-based compensation expense, amortization and impairment of intangible assets, gain or loss on deemed disposals/disposals/revaluation of investments, impairment of goodwill and investments, and others (including provision in relation to matters outside the ordinary course of business), and adjustments for the tax effects.

Non-GAAP diluted earnings per share represents non-GAAP net income attributable to ordinary shareholders divided by the weighted average number of outstanding ordinary shares for computing non-GAAP diluted earnings per share on a diluted basis. Non-GAAP diluted earnings per ADS represents non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.

Free cash flow represents net cash provided by operating activities as presented in our consolidated cash flow statement less purchases of property and equipment (excluding acquisition of land use rights and construction in progress relating to office campuses) and intangible assets (excluding those acquired through acquisitions), as well as adjustments to exclude from net cash provided by operating activities the buyer protection fund deposits from merchants on our marketplaces. We deduct certain items of cash flows from investing activities in order to provide greater transparency into cash flow from our revenue-generating business operations. We exclude “acquisition of land use rights and construction in progress relating to office campuses” because the office campuses are used by us for corporate and administrative purposes and are not directly related to our revenue-generating business operations. We also exclude buyer protection fund deposits from merchants on our marketplaces because these deposits are restricted for the purpose of compensating buyers for claims against merchants.

The table captioned “Reconciliations of Non-GAAP Measures to the Nearest Comparable U.S. GAAP Measures” in this results announcement has more details on the non-GAAP financial measures that are most directly comparable to GAAP financial measures and the related reconciliations between these financial measures.

ALIBABA GROUP HOLDING LIMITED

UNAUDITED CONSOLIDATED INCOME STATEMENTS

Three months ended September 30,

Six months ended September 30,

2024

2025

2024

2025

RMB

RMB

US$

RMB

RMB

US$

(in millions, except per share data)

(in millions, except per share data)

Revenue

236,503

247,795

34,808

479,739

495,447

69,595

Cost of revenue

(144,029)

(150,781)

(21,180)

(290,135)

(287,210)

(40,344)

Product development expenses

(14,182)

(17,095)

(2,401)

(27,555)

(32,096)

(4,509)

Sales and marketing expenses

(32,471)

(66,496)

(9,341)

(65,167)

(119,674)

(16,811)

General and administrative expenses

(9,777)

(7,380)

(1,037)

(23,057)

(14,778)

(2,076)

Amortization and impairment of intangible assets

(1,649)

(826)

(116)

(3,441)

(1,633)

(229)

Other gains, net

851

148

21

851

297

42

Income from operations

35,246

5,365

754

71,235

40,353

5,668

Interest and investment income, net

18,607

20,092

2,822

17,129

37,468

5,263

Interest expense

(2,427)

(2,517)

(354)

(4,615)

(4,995)

(702)

Other (expense) income, net

(1,478)

981

138

(1,221)

1,329

187

Income before income tax and share of results of equity method investees

49,948

23,921

3,360

82,528

74,155

10,416

Income tax expenses

(7,379)

(5,550)

(780)

(17,442)

(14,415)

(2,024)

Share of results of equity method investees

978

2,241

315

2,483

3,254

457

Net income

43,547

20,612

2,895

67,569

62,994

8,849

Net loss (income) attributable to noncontrolling interests

486

407

58

854

(1,326)

(187)

Net income attributable to Alibaba Group Holding Limited

44,033

21,019

2,953

68,423

61,668

8,662

(Accretion) Reversal of accretion of mezzanine equity

(159)

(29)

(5)

(280)

2,438

343

Net income attributable to ordinary shareholders

43,874

20,990

2,948

68,143

64,106

9,005

Earnings per share attributable to ordinary shareholders(1)

Basic

2.34

1.13

0.16

3.58

3.45

0.49

Diluted

2.27

1.09

0.15

3.50

3.34

0.47

Earnings per ADS attributable to ordinary shareholders(1)

Basic

18.71

9.05

1.27

28.62

27.63

3.88

Diluted

18.17

8.75

1.23

28.00

26.73

3.75

Weighted average number of shares used in calculating earnings per ordinary share (million shares) (1)

Basic

18,761

18,555

19,045

18,562

Diluted

19,322

19,168

19,459

19,154

ALIBABA GROUP HOLDING LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEETS

As of March 31,

As of September 30,

2025

2025

RMB

RMB

US$

(in millions)

Assets

Current assets:

Cash and cash equivalents

145,487

135,069

18,973

Short-term investments

228,826

193,246

27,145

Restricted cash and escrow receivables

43,781

40,374

5,671

Equity securities and other investments

53,780

45,257

6,357

Prepayments, receivables and other assets

202,175

232,673

32,684

Total current assets

674,049

646,619

90,830

Equity securities and other investments

356,818

411,953

57,867

Prepayments, receivables and other assets

83,431

96,927

13,615

Investment in equity method investees

210,169

206,862

29,058

Property and equipment, net

203,348

246,539

34,631

Intangible assets, net

20,911

19,429

2,729

Goodwill

255,501

255,551

35,897

Total assets

1,804,227

1,883,880

264,627

Liabilities, Mezzanine Equity and Shareholders’ Equity

Current liabilities:

Current bank borrowings

22,562

26,288

3,693

Income tax payable

11,638

5,588

785

Accrued expenses, accounts payable and other liabilities

332,537

340,769

47,868

Merchant deposits

274

251

35

Deferred revenue and customer advances

68,335

71,241

10,007

Total current liabilities

435,346

444,137

62,388

 

ALIBABA GROUP HOLDING LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED)

As of March 31,

As of September 30,

2025

2025

RMB

RMB

US$

(in millions)

Deferred revenue

4,536

4,496

632

Deferred tax liabilities

48,454

46,802

6,574

Non-current bank borrowings

49,909

63,566

8,929

Non-current unsecured senior notes

122,398

120,504

16,927

Non-current convertible unsecured senior notes

35,834

57,481

8,074

Non-current exchangeable bonds

–

13,755

1,932

Other liabilities

17,644

21,354

3,000

Total liabilities

714,121

772,095

108,456

Commitments and contingencies

Mezzanine equity

11,713

9,884

1,388

Shareholders’ equity:

Ordinary shares

1

1

–

Additional paid-in capital

381,379

387,147

54,382

Treasury shares at cost

(36,329)

(36,162)

(5,080)

Statutory reserves

15,936

16,286

2,288

Accumulated other comprehensive income (loss)

3,393

(1,561)

(219)

Retained earnings

645,478

666,784

93,663

Total shareholders’ equity

1,009,858

1,032,495

145,034

Noncontrolling interests

68,535

69,406

9,749

Total equity

1,078,393

1,101,901

154,783

Total liabilities, mezzanine equity and equity

1,804,227

1,883,880

264,627

 

ALIBABA GROUP HOLDING LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three months ended September 30,

Six months ended September 30,

2024

2025

2024

2025

RMB

RMB

US$

RMB

RMB

US$

(in millions)

(in millions)

Net cash provided by operating activities

31,438

10,099

1,419

65,074

30,771

4,322

Net cash provided by (used in) investing activities

964

(69,652)

(9,784)

(34,865)

(51,324)

(7,209)

Net cash (used in) provided by financing activities

(66,782)

10,902

1,531

(86,364)

8,171

1,148

Effect of exchange rate changes on cash and cash equivalents, restricted cash and escrow receivables

(2,456)

(485)

(68)

(1,797)

(1,443)

(203)

Decrease in cash and cash equivalents, restricted cash and escrow receivables

(36,836)

(49,136)

(6,902)

(57,952)

(13,825)

(1,942)

Cash and cash equivalents, restricted cash and escrow receivables at beginning of period

265,308

224,579

31,546

286,424

189,268

26,586

Cash and cash equivalents, restricted cash and escrow receivables at end of period

228,472

175,443

24,644

228,472

175,443

24,644

 

ALIBABA GROUP HOLDING LIMITED

RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES

The table below sets forth a reconciliation of our net income to adjusted EBITA and adjusted EBITDA for the periods indicated:

Three months ended September 30,

Six months ended September 30,

2024

2025

2024

2025

RMB

RMB

US$

RMB

RMB

US$

(in millions)

(in millions)

Net income

43,547

20,612

2,895

67,569

62,994

8,849

Adjustments to reconcile net income to adjusted EBITA and adjusted EBITDA:

Interest and investment income, net

(18,607)

(20,092)

(2,822)

(17,129)

(37,468)

(5,263)

Interest expense

2,427

2,517

354

4,615

4,995

702

Other expense (income), net

1,478

(981)

(138)

1,221

(1,329)

(187)

Income tax expenses

7,379

5,550

780

17,442

14,415

2,024

Share of results of equity method investees

(978)

(2,241)

(315)

(2,483)

(3,254)

(457)

Income from operations

35,246

5,365

754

71,235

40,353

5,668

Non-cash share-based compensation expense

3,666

2,882

404

7,775

6,076

854

Amortization and impairment of intangible assets, and others

1,649

826

116

3,441

1,488

209

Provision for the shareholder class action lawsuits

–

–

–

3,145

–

–

Adjusted EBITA

40,561

9,073

1,274

85,596

47,917

6,731

Depreciation and impairment of property and equipment, and operating lease cost relating to land use rights

6,766

8,183

1,150

12,892

15,074

2,117

Adjusted EBITDA

47,327

17,256

2,424

98,488

62,991

8,848

 

ALIBABA GROUP HOLDING LIMITED

RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES (CONTINUED)

The table below sets forth a reconciliation of our net income to non-GAAP net income for the periods indicated:

Three months ended September 30,

Six months ended September 30,

2024

2025

2024

2025

RMB

RMB

US$

RMB

RMB

US$

(in millions)

(in millions)

Net income

43,547

20,612

2,895

67,569

62,994

8,849

Adjustments to reconcile net income to non-GAAP net income:

Non-cash share-based compensation expense

3,666

2,882

404

7,775

6,076

854

Amortization and impairment of intangible assets

1,649

826

116

3,441

1,633

229

Provision for the shareholder class action lawsuits

–

–

–

3,145

–

–

Gain on deemed disposals/disposals/revaluation of investments

(12,697)

(16,192)

(2,274)

(8,116)

(29,320)

(4,119)

Impairment of investments, and others

756

1,442

203

5,067

2,455

345

Tax effects(1)

(403)

782

110

(1,672)

24

3

Non-GAAP net income

36,518

10,352

1,454

77,209

43,862

6,161

ALIBABA GROUP HOLDING LIMITED

RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES (CONTINUED)

The table below sets forth a reconciliation of our diluted earnings per share/ADS to non-GAAP diluted earnings per share/ADS for the periods indicated:

Three months ended September 30,

Six months ended September 30,

2024

2025

2024

2025

RMB

RMB

US$

RMB

RMB

US$

(in millions, except per share data)

(in millions, except per share data)

Net income attributable to ordinary shareholders – basic

43,874

20,990

2,948

68,143

64,106

9,005

Dilution effect on earnings arising from non-cash share-based awards operated by equity method investees and subsidiaries

(56)

(96)

(13)

(131)

(258)

(36)

Adjustments for interest expense attributable to convertible unsecured senior notes

69

72

10

95

143

20

Net income attributable to ordinary shareholders – diluted

43,887

20,966

2,945

68,107

63,991

8,989

Non-GAAP adjustments to net income attributable to ordinary shareholders(1)

(7,524)

(10,516)

(1,477)

8,521

(18,250)

(2,564)

Non-GAAP net income attributable to ordinary shareholders for computing non-GAAP diluted earnings per share/ADS

36,363

10,450

1,468

76,628

45,741

6,425

Weighted average number of shares on a diluted basis for computing non-GAAP diluted earnings per share/ADS (million shares)(2)

19,322

19,168

19,459

19,154

Diluted earnings per share(2)(3)

2.27

1.09

0.15

3.50

3.34

0.47

Non-GAAP diluted earnings per share(2)(4)

1.88

0.55

0.08

3.94

2.39

0.34

Diluted earnings per ADS(2)(3)

18.17

8.75

1.23

28.00

26.73

3.75

Non-GAAP diluted earnings per ADS(2)(4)

15.06

4.36

0.61

31.50

19.10

2.68

(1)

Non-GAAP adjustments excluding the attributions to the noncontrolling interests. See the table above for items regarding the reconciliation of net income to non-GAAP net income (before excluding the attributions to the noncontrolling interests).

(2)

Each ADS represents eight ordinary shares.

(3)

Diluted earnings per share is derived from dividing net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares, on a diluted basis. Diluted earnings per ADS is derived from the diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.

(4)

Non-GAAP diluted earnings per share is derived from dividing non-GAAP net income attributable to ordinary shareholders by the weighted average number of outstanding ordinary shares for computing non-GAAP diluted earnings per share, on a diluted basis. Non-GAAP diluted earnings per ADS is derived from the non-GAAP diluted earnings per share after adjusting for the ordinary share-to-ADS ratio.

 

ALIBABA GROUP HOLDING LIMITED

RECONCILIATIONS OF NON-GAAP MEASURES TO THE NEAREST COMPARABLE U.S. GAAP MEASURES (CONTINUED)

The table below sets forth a reconciliation of net cash provided by operating activities to free cash flow for the periods indicated:

Three months ended September 30,

Six months ended September 30,

2024

2025

2024

2025

RMB

RMB

US$

RMB

RMB

US$

(in millions)

(in millions)

Net cash provided by operating activities

31,438

10,099

1,419

65,074

30,771

4,322

Less: Purchase of property and equipment (excluding land use rights and construction in progress relating to office campuses)

(16,977)

(31,428)

(4,415)

(28,916)

(70,057)

(9,841)

Less: Changes in the buyer protection fund deposits

(726)

(511)

(72)

(5,051)

(1,369)

(192)

Free cash flow

13,735

(21,840)

(3,068)

31,107

(40,655)

(5,711)