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Key Takeaways Hims & Hers is accelerating growth through weight loss, with U.S. revenues up 16% in the second quarter.International revenues surged more than 17-fold, with management targeting at least $600 million in 2026.AI is boosting engagement and cutting nonclinical support tasks by nearly 50%, aiding retention and costs. Hims & Hers Health (HIMS - Free Report) has entered the second half of 2026 with strong momentum from weight-loss offerings, international expansion and AI-enabled care. However, gross-margin pressure from changing business mix, regulatory uncertainty surrounding the FTC and peptide therapies, and the need to navigate evolving weight-loss opportunities could temper its growth outlook.

Shares of this Zacks Rank #3 (Hold) company have gained 3.4% in the past three months compared with the industry's 41.2% growth and the S&P 500 Index’s 1.1% increase.

Hims & Hers, with a market capitalization of $6.9 billion, is a consumer-centric health and wellness platform.

Image Source: Zacks Investment Research

HIMS’ bottom line is estimated to improve 19.5% over the next five years. Its earnings missed estimates in three of the trailing four quarters and beat once, delivering a negative average surprise of 94.05%.

What's Driving HIMS’ Performance?Weight-Loss Expansion Is Reaccelerating Domestic Growth: Hims & Hers' expanded weight-loss product line is becoming a major catalyst for domestic growth. The second-quarter revenues increased nearly 40% year over year to more than $753 million, while U.S. revenues accelerated 16% to $622 million. Management attributed much of the improvement to the March decision to broaden branded weight-loss offerings, which helped offset revenue-recognition headwinds from moving branded products to a monthly cadence.

The category is also strategically valuable because it expands cross-selling into areas such as low testosterone and cardiovascular health. With nearly 3 million subscribers and stronger retention among newer cohorts, weight loss could support sustained growth and greater lifetime value.

International Expansion Is Rapidly Increasing Addressable Market: Hims & Hers is gaining substantial scale globally, with international revenues surging more than 17-fold year over year to $131 million in the second quarter. The Eucalyptus acquisition contributed approximately $40 million, while the existing international business grew 13% sequentially on an organic basis.

The U.K., Australia and Germany have each surpassed $100 million in annualized revenues, with Canada nearing the threshold. Management expects international revenues to reach at least $600 million in 2026, while weight-loss adoption remains meaningfully below U.S. levels. This provides considerable runway for category expansion, although management is prioritizing scale before maximizing profitability.

AI-Enabled Care Could Improve Retention and Lower Service Costs: Hims & Hers is beginning to demonstrate tangible operating benefits from integrating AI into its care model. Among Hers’ weight-loss customers using the new AI-native experience, engagement increased sharply, with users sending three times as many messages, while AI handled approximately 80% of questions. AI reduced nonclinical support tasks by nearly 50%, creating an opportunity to lower the cost of serving subscribers.

Management also reported early evidence of stronger engagement and lower cancellation rates among participating cohorts. If these improvements scale across the broader platform, HIMS could simultaneously improve customer retention, personalize care and generate operating leverage, thereby strengthening its long-term unit economics.

Pharmaceutical Partnerships Strengthen the Weight-Loss Ecosystem: Hims & Hers' relationship with Novo Nordisk provides an important strategic advantage as branded weight-loss treatments become more accessible. Management highlighted strong collaboration around the launch of the Wegovy pill, noting that HIMS is among the largest platforms helping consumers access the therapy.

Internationally, Eucalyptus helped generate tens of thousands of prospective patients for Wegovy's launch in certain markets. The partnership also creates opportunities to exchange insights around adherence, side effects and dosing, potentially strengthening HIMS' ability to support patients throughout their treatment journey. Relationships with pharmaceutical innovators could position HIMS as an important digital distribution and patient-access channel as additional therapies reach the market.

What’s Weighing on HIMS Stock?Gross Margin Lowers as the Business Mix Changes: Hims & Hers' rapid expansion into branded weight loss and international markets is coming with a meaningful profitability trade-off. Adjusted gross margin fell approximately six percentage points sequentially to 64% in the second quarter, reflecting the increasing contribution of lower-margin branded weight-loss products and international revenues.

Management explicitly expects gross margins to remain below historical levels as these categories expand. Although operating leverage helped adjusted EBITDA margin improve to 8%, the structural mix shift means revenue growth may not translate proportionately into gross-profit growth. Investors therefore need to evaluate HIMS on the basis of future customer lifetime value and scale economics rather than relying on historical margin profiles.

Working-Capital Requirements Are Straining Cash Generation: The rapid expansion of branded weight-loss offerings is creating greater working-capital requirements, highlighting a financial risk associated with HIMS' new business model. Operating cash flow was negative $36 million in the second quarter, while free cash flow was negative $68 million, as short-dated receivables and inventory requirements increased.

Although management expects free cash flow to recover in the second half and has established a $400 million receivables facility, the recent transition underscores that accelerating revenue growth does not necessarily result in proportional cash generation. Continued scaling of branded therapies could require additional liquidity and working-capital investment, particularly if payment cycles lengthen or inventory requirements rise faster than expected.

Peptide Opportunity Remains Dependent on FDA Decisions: Hims & Hers has invested significantly in building infrastructure around peptide therapies, but commercialization remains contingent on FDA rulemaking. Management was encouraged by the fact that six of seven peptides advanced successfully through the FDA's PCAC process and believes the company can move quickly if they are placed on the appropriate Category 1 list.

However, the company is explicitly waiting for full and final FDA rulemaking before bringing these therapies to market. This creates uncertainty around timing, permissible offerings and potential revenue contribution. HIMS can continue expanding other wellness products in the interim, but the broader peptide opportunity remains regulatory-dependent and should not be treated as a near-term guaranteed growth driver.

Estimate TrendThe Zacks Consensus Estimate for 2026 revenues is pegged at $3.22 billion, implying growth of 37.2% from the year-ago reported figure. The consensus mark for loss per share is pinned at 60 cents, which implies a deterioration of 213.2% from the previous year’s recorded level.

In the past 30 days, HIMS’ loss per share estimate for 2026 has increased 185.7%.

Stocks to ConsiderSome better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Veracyte (VCYT - Free Report) andWest Pharmaceutical (WST - Free Report) .

Globus Medical, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

Veracyte, currently carrying a Zacks Rank #2 (Buy), reported a second-quarter 2026 adjusted EPS of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%.

VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.

West Pharmaceutical, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.4%.

 | Source: PennantPark Floating Rate Capital Ltd.

MIAMI, Sept. 02, 2026 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the "Company") (NYSE: PFLT) declares its monthly distribution for September 2026 of $0.0833 per share, comprised of an $0.08 per share base dividend and $0.0033 per share supplemental dividend, payable on October 1, 2026 to stockholders of record as of September 15, 2026. The distribution is expected to be paid from taxable net investment income. The final specific tax characteristics of the distribution will be reported to stockholders on Form 1099 after the end of the calendar year and in the Company's periodic report filed with the Securities and Exchange Commission.

The Company, which operates as a regulated investment company (“RIC”), generates qualified interest income and short-term capital gains that may be exempt from U.S. withholding tax when distributed to non-U.S. stockholders. The U.S. tax law permits a RIC to report the portion of distributions paid that represents interest-related dividends as exempt from U.S. withholding tax when paid to non-U.S. stockholders with proper documentation.

The specific tax characteristics of this distribution can be found on our website www.pennantpark.com. 

ABOUT PENNANTPARK FLOATING RATE CAPITAL LTD.

PennantPark Floating Rate Capital Ltd. is a business development company which primarily invests in U.S. middle-market private companies in the form of floating rate senior secured loans, including first lien secured debt, second lien secured debt and subordinated debt. From time to time, the Company may also invest in equity investments. PennantPark Floating Rate Capital Ltd. is managed by PennantPark Investment Advisers, LLC.

ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC

PennantPark Investment Advisers, LLC, a leading middle market credit platform, and its affiliates, manage over $10 billion of investable capital, including potential leverage. Since its inception in 2007, PennantPark Investment Advisers, LLC has provided investors access to middle market credit by offering private equity firms and their portfolio companies as well as other middle-market borrowers a comprehensive range of creative and flexible financing solutions. PennantPark Investment Advisers, LLC is headquartered in Miami and has offices in New York, Chicago, Houston, Los Angeles, Amsterdam, and Zurich. For more information about PennantPark and affiliates, please go to our website at www.pennantpark.com.

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act and Section 21E(b)(2)(B) of the Exchange Act the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports PennantPark Floating Rate Capital Ltd. files under the Exchange Act. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. PennantPark Floating Rate Capital Ltd. undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.

The information contained herein is based on current tax laws, which may change in the future. The Company cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. The information provided in this material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.

CONTACT:
Richard T. Allorto, Jr.
PennantPark Floating Rate Capital Ltd.
(212) 905-1000
www.pennantpark.com 

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Presentation attack detection solution demonstrates exceptional performance against sophisticated spoofing attacks in the 2026 LivDet-Face competition, reinforcing Mitek's leadership in AI-powered identity verification

SAN DIEGO--(BUSINESS WIRE)--Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity verification, mobile capture and fraud management, today announced that its Presentation Attack Detection (PAD) technology took the top three places in the Image category of the 2026 LivDet-Face competition, an independent evaluation organized by the Center for Identification Technology Research (CITeR).

The 2026 LivDet-Face competition evaluated face presentation attack detection solutions against a diverse range of sophisticated spoofing methods, including print attacks, replay attacks and advanced 3D mask attacks, using standardized protocols designed to measure robustness against previously unseen attack scenarios.

The LivDet-Face competition is recognized as one of the industry's leading fully blind independent benchmarks for face liveness detection. Unlike traditional benchmarking exercises, participants are evaluated against previously unseen presentation attacks using sequestered test data, providing an objective assessment of how solutions perform against emerging fraud techniques in real-world conditions.

"As AI continues to lower the barrier for sophisticated identity fraud, organizations need security technologies that can distinguish legitimate users from increasingly convincing presentation attacks without creating unnecessary friction," said Garrett Gafke, Chief Operating Officer at Mitek. "These results reinforce our commitment to delivering AI-powered identity verification that helps organizations strengthen security while providing seamless digital experiences."

Mitek’s Presentation Attack Detection technology passively verifies liveness from a single facial image, eliminating the need for users to blink, turn their head or perform other active steps. This frictionless approach helps organizations strengthen fraud prevention while improving the user experience and increasing completion rates. Built on an ensemble of AI models trained using proprietary datasets encompassing diverse devices, demographic groups and more than 20 presentation attack types, the technology delivers accurate, resilient protection against a broad and evolving range of spoofing techniques.

Mitek’s bandwidth-efficient, compressed-capture architecture minimizes upload size and latency, enabling fast, reliable performance without compromising protection. Available as both standalone Dockerized services and SDK integration, and via the MiVIP platform, Mitek's production-ready PAD solutions provide organizations with deployment flexibility while integrating into existing identity verification workflows.

Mitek continues to invest in AI-powered identity verification technologies that help organizations establish trust throughout the digital customer journey while staying ahead of increasingly sophisticated fraud threats.

About Mitek Systems, Inc.

Mitek Systems protects what’s real across digital interactions in a world of evolving threats. Mitek helps businesses verify identities, prevent fraud before it happens, and deliver secure, seamless digital experiences in the face of rapidly advancing AI-generated threats. From account opening to authentication and deposit, Mitek’s technology safeguards critical digital interactions. More than 7,000 organizations rely on Mitek to protect their most important customer connections and stay ahead of emerging risks. Learn more at www.miteksystems.com.

Follow Mitek on LinkedIn and YouTube, and read Mitek’s latest blog posts here.

Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding Mitek’s technology performance, product roadmap, and continued investment in AI-powered identity verification. These statements are based on the Company’s current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially, including the risks described in the Company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date of this press release, and the Company undertakes no obligation to update them except as required by law.

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HOUSTON, Sept. 02, 2026 (GLOBE NEWSWIRE) -- Matrix Service Company (Nasdaq: MTRX, "Matrix" or "the Company"), a leading heavy industrial contractor that engineers, constructs, and maintains critical energy, power, and industrial infrastructure, today announced financial results for the fourth quarter of fiscal 2026 ended June 30, 2026.

FOURTH QUARTER FISCAL 2026 HIGHLIGHTS
(all comparisons versus the prior year period unless otherwise noted)

Revenue of $244.5 million versus $216.4 million; highest quarterly revenue in six yearsNet income of $1.1 million, or $0.04 per share versus net loss of $(11.3) million or $(0.40) per shareAdjusted net income(1) of $4.6 million, or $0.16 per share versus adjusted net loss of $(7.8) million, or $(0.28) loss per share; second consecutive quarter of profitabilityAdjusted EBITDA(1) of $6.3 million versus $(4.8) millionLiquidity(2) at June 30, 2026 of $283.9 million with no outstanding debtTotal backlog of $953.2 million, with awards of $169.0 million FULL-YEAR FISCAL 2026 RESULTS
(all comparisons versus the prior year period unless otherwise noted)

Revenue of $873.6 million versus $769.3 millionNet loss per share of $(0.09) versus $(1.06); adjusted net income (loss) per share of $0.26 versus $(0.93)Adjusted EBITDA of $16.0 million versus $(12.9) million (1) Adjusted net income and adjusted net income per diluted share are non-GAAP financial measures which exclude restructuring expense, Adjusted EBITDA is a non-GAAP financial measure which excludes interest expense, interest income, income taxes, depreciation and amortization expense, restructuring expense, and stock-based compensation. See the Non-GAAP Financial Measures section included at the end of this release for a reconciliation to net income and net income per share.
(2) Liquidity includes unrestricted cash, cash equivalents and borrowing availability under a $90 million ABL facility maturing in September 2029

MANAGEMENT COMMENTARY

“Our fourth quarter results reflect the continued execution of our WIN, EXECUTE, DELIVER strategy. The combination of strong project execution, a more efficient cost structure, and a disciplined focus on the initiatives that matter most resulted in our second consecutive quarter of profitable growth," stated Shawn P. Payne, President and Chief Executive Officer. "Revenue grew 13% year over year as our teams converted backlog into higher volumes, led by specialty storage activity in our Storage and Terminal Solutions segment and continued strong execution in Utility and Power Infrastructure. At the same time, the leaner organizational structure we have built over the past 18 months has meaningfully reduced our fixed overhead costs, while enabling us to support a higher base of revenue with improved efficiency. We enter fiscal 2027 with a debt-free balance sheet and substantial liquidity to support our growth objectives in this next chapter.

“Matrix is focused on high-value opportunities, prioritizing backlog growth across our targeted end-markets,” continued Payne. “We secured nearly $170 million of project awards in the fourth quarter, including a major mining construction project in the western United States. This project, which supported a book-to-bill ratio of 3.2x in our Process and Industrial Facilities during the fourth quarter, expands our position in the non-ferrous mining and critical minerals market, broadens the range of end markets served by our engineering and construction capabilities, and represents an important new client relationship that we expect to expand over time.

"Fiscal 2026 was a pivotal year for Matrix," concluded Payne. "Our opportunity pipeline has grown to over $7 billion, reflecting generational levels of investment underway across the markets we serve, including LNG and NGL infrastructure, power generation, electric grid modernization, data centers, and mining and minerals production. A number of larger, multi-year opportunities within that pipeline have advanced meaningfully, and we anticipate a higher level of award activity as those targets reach final investment decision. Looking ahead, we are focused on driving profitable growth, executing projects safely, on time and on budget, and deploying capital with discipline as we seek to drive long-term value creation for our clients and shareholders.”

FISCAL 2026 FOURTH QUARTER CONSOLIDATED RESULTS

Fiscal 2026 fourth quarter revenue was $244.5 million, compared to $216.4 million in the fourth quarter of fiscal 2025. The increase in revenue for the quarter was attributable to higher revenue in the Storage and Terminal Solutions segment, partially offset by lower revenue in the Process and Industrial Facilities segment.

Gross profit was $19.5 million, or 8.0% of revenue, in the fourth quarter of fiscal 2026 compared to $8.1 million, or 3.8% of revenue, for the fourth quarter of fiscal 2025. The increase in gross margin was due to higher gross margins in the Storage and Terminal Solutions and Utility and Power Infrastructure segments, partially offset by lower gross margins in the Process and Industrial Facility segment.

SG&A expenses were $16.9 million in the fourth quarter of fiscal 2026, compared to $17.6 million for the fourth quarter of fiscal 2025. The decrease in SG&A expenses primarily reflects the reduction of costs associated with the Company's organizational realignment initiatives over the last 12 months partially offset by variable compensation tied to a return to profitable performance.

During the quarter, the Company incurred $3.4 million of restructuring costs and other expenses, which included costs associated with the previously announced leadership transitions, as well as costs associated with actions taken in the fourth quarter to reduce our cost structure by reducing our workforce.

For the fourth quarter of fiscal 2026, the Company had net income of $1.1 million, or $0.04 per share, compared to a net loss of $11.3 million, or $(0.40) per share, in the fourth quarter of fiscal 2025. Adjusted net income for the fourth quarter of fiscal 2026 was $4.6 million, or $0.16 per share, compared to adjusted net loss of $7.8 million, or $(0.28) per share in the fourth quarter of fiscal 2025. Adjusted EBITDA for the fourth quarter of fiscal 2026 was $6.3 million compared to a loss of $4.8 million for the fourth quarter of fiscal 2025.

FISCAL 2026 FOURTH QUARTER SEGMENT RESULTS

Storage and Terminal Solutions segment revenue increased 43% to $137.4 million in the fourth quarter of fiscal 2026 compared to $96.1 million in the fourth quarter of fiscal 2025, due to higher specialty storage activity. Gross margin was 6.4% in the fourth quarter of fiscal 2026, compared to (1.1)% in the fourth quarter of fiscal 2025. In the fourth quarter of fiscal 2025, the Company lowered its recovery expectations on a legacy project completed in fiscal 2021 that was in arbitration which resulted in a $6.4 million decrease to both revenue and gross margin. The matter was fully resolved in fiscal 2026.

Utility and Power Infrastructure segment revenue was $73.5 million in the fourth quarter of fiscal 2026, which was consistent with the prior year period. Gross margin was 12.8% in the fourth quarter of fiscal 2026, compared to 9.1% for the fourth quarter of fiscal 2025, an increase of 3.7% due to strong project execution.

Process and Industrial Facilities segment revenue decreased to $33.6 million in the fourth quarter of fiscal 2026 compared to $47.3 million in the fourth quarter of fiscal 2025, primarily due to lower revenue volumes for refinery work, partially offset by an increase in revenue for a mining project. Gross margin was 2.9% in the fourth quarter of fiscal 2026, compared to 5.9% for the fourth quarter of fiscal 2025, a decrease of 3.0%, primarily due to a mix of work, as well as an increase in under-recovery of overhead costs as a result of lower revenue.

BACKLOG

Total backlog was $953.2 million as of June 30, 2026. Project awards totaled $169.0 million in the fourth quarter of fiscal 2026, resulting in a book-to-bill ratio of 0.7x for the quarter. Project awards during the fourth quarter for fiscal 2026 were driven primarily by activity in the Process and Industrial Facilities segment, including a major mining construction project in the western United States.

The table below summarizes awards, book-to-bill ratios and backlog by segment for the fourth quarter ended June 30, 2026 (amounts are in thousands, except for book-to-bill ratios):

  Three Months Ended    June 30, 2026 Backlog as of
 Segment:Awards Book-to-Bill(1) June 30, 2026 Storage and Terminal Solutions$                       31,201 0.2x $                     641,159 Utility and Power Infrastructure                          29,805 0.4x                         145,732 Process and Industrial Facilities                        108,036 3.2x                         166,287 Total$                     169,042 0.7x $                     953,178          _______________

(1)      Calculated by dividing project awards by revenue recognized during the period.

BALANCE SHEET & LIQUIDITY

As of June 30, 2026, Matrix had total liquidity of $283.9 million. Liquidity is comprised of $223.0 million of unrestricted cash and cash equivalents and $60.9 million of borrowing availability under the credit facility. The Company also has $25.0 million of restricted cash to support the credit facility. As of June 30, 2026, the Company had no outstanding debt.

CONFERENCE CALL DETAILS

In conjunction with the earnings release, Matrix Service Company will host a conference call with Shawn P. Payne, President and CEO, Kevin S. Cavanah, Vice President and CFO, and Patrick Roberts, Director, Corporate Development and Investor Relations. The call will take place at 10:30 a.m. (Eastern) / 9:30 a.m.  (Central) on Thursday, September 3, 2026.

Investors and other interested parties can access a live audio-visual webcast using this webcast link: https://edge.media-server.com/mmc/p/iaonjazk, or through the Company’s website at www.matrixservicecompany.com on the Investors Relations page under Events & Presentations.

If you would like to dial in to the conference call, please register at https://register-conf.media-server.com/register/BIa70ac1007e5d4738bedd41c695baab7f at least 10 minutes prior to the start time. Upon registration, participants will receive a dial-in number and unique PIN to join the call as well as an e-mail confirmation with the details.

For those unable to participate in the conference call, a replay of the webcast will be available on the Investor Relations page of the Company's website.

The conference call will be recorded and will be available for replay within one hour of completion of the live call and can be accessed following the same link as the live call.

ABOUT MATRIX SERVICE COMPANY

Matrix Service Company (Nasdaq: MTRX) is a leading heavy industrial contractor that engineers, constructs, and maintains critical energy, power, and industrial infrastructure. Our commitment to safety, quality, and integrity has earned the Company a leadership position in providing infrastructure solutions across multiple end markets. Our work is foundational to helping our energy, power, and industrial clients achieve their objectives, positively impact quality of life through the products they provide and improve the efficiency and resilience of their critical infrastructure. We pride ourselves on our commitment to our culture and core values, offering an inclusive and respectful work environment, and being certified as a Great Place To Work®.

The Company maintains its principle executive offices in Houston, Texas with offices located throughout the United States and Canada, as well as Sydney, Australia, and Seoul, South Korea. The Company reports its financial results in three key operating segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities.

To learn more about Matrix Service Company, visit matrixservicecompany.com

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements that are made in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are generally accompanied by words such as “anticipate,” “continues,” “expect,” “forecast,” “outlook,” “believe,” “estimate,” “should” and “will” and words of similar effect that convey future meaning, concerning the Company’s operations, economic performance, financial guidance, sustained profitable growth and management’s best judgment as to what may occur in the future.  Future events involve risks and uncertainties that may cause actual results to differ materially from those we currently anticipate. The actual results for the current and future periods and other corporate developments will depend upon a number of economic, competitive and other influences, including the successful implementation of the Company's business improvement plan and the factors discussed in the “Risk Factors” and “Forward Looking Statements” sections and elsewhere in the Company’s reports and filings made from time to time with the Securities and Exchange Commission. Many of these risks and uncertainties are beyond the control of the Company, and any one of which, or a combination of which, could materially and adversely affect the results of the Company's operations and its financial condition.  We undertake no obligation to update information contained in this release, except as required by law.

Investors should note that the Company announces material financial information in SEC filings, press releases, presentations and public conference calls. Based on guidance from the SEC, the Company may use the Investors section of its website (www.matrixservicecompany.com) to communicate with investors, and the Company intends to post presentations there, among other things. It is possible that the financial and other information posted there could be deemed to be material information. The information on the Company’s website is not part of, and is not incorporated into, this release.

INVESTOR RELATIONS CONTACT

Patrick Roberts
Matrix Service Company
Director, Corporate Development and Investor Relations
T: 918-359-8249
Email: [email protected]

Matrix Service Company
Consolidated Statements of Income
 (In thousands, except per share data)
  Three Months Ended Fiscal Years Ended June 30,
2026 June 30,
2025 June 30,
2026 June 30,
2025Revenue$244,531  $216,377  $873,632  $769,286 Cost of revenue 225,049   208,255   809,680   729,609 Gross profit 19,482   8,122   63,952   39,677 Selling, general and administrative expenses 16,946   17,581   63,607   71,173 Restructuring costs and other 3,427   3,448   9,963   3,572 Operating loss (891)  (12,907)  (9,618)  (35,068)Other income (expense):       Interest expense (107)  (150)  (437)  (518)Interest income 2,182   1,984   7,717   6,652 Other 47   249   114   (64)Income (loss) before income tax expense 1,231   (10,824)  (2,224)  (28,998)Provision for federal, state and foreign income taxes 89   448   356   464 Net income (loss)$1,142  $(11,272) $(2,580) $(29,462)        Basic income (loss) per common share$0.04  $(0.40) $(0.09) $(1.06)Diluted income (loss) per common share$0.04  $(0.40) $(0.09) $(1.06)Weighted average common shares outstanding:       Basic 28,392   27,884   28,295   27,769 Diluted 28,524   27,884   28,295   27,769                  Matrix Service Company
Consolidated Balance Sheets
 (In thousands)
     June 30,
2026 June 30,
2025Assets   Current assets:   Cash and cash equivalents$222,966 $224,641Accounts receivable, net of allowance for credit losses 171,955  154,994Costs and estimated earnings in excess of billings on uncompleted contracts 29,231  29,764Inventories 6,190  5,917Income taxes receivable 82  110Prepaid expenses and other current assets 4,278  4,347Assets held for sale 948  —Total current assets 435,650  419,773Restricted cash 25,000  25,000Property, plant and equipment, net 36,261  42,097Operating lease right-of-use assets 14,849  17,827Goodwill 28,878  29,047Other intangible assets, net of accumulated amortization —  555Other assets, non-current 61,967  65,957Total assets$602,605 $600,256     Matrix Service Company
Consolidated Balance Sheets (continued)
 (In thousands, except share data)
  June 30,
2026 June 30,
2025Liabilities and stockholders’ equity   Current liabilities:   Accounts payable$108,722  $80,453 Billings on uncompleted contracts in excess of costs and estimated earnings 299,947   323,593 Accrued wages and benefits 19,158   18,961 Accrued insurance 4,447   5,310 Operating lease liabilities 4,363   4,441 Other accrued expenses 5,779   3,617 Total current liabilities 442,416   436,375 Deferred income taxes 22   25 Operating lease liabilities 15,094   16,986 Other liabilities, non-current 3,218   4,154 Total liabilities 460,750   457,540 Stockholders’ equity:   Common stock—0.01 par value; 60,000,000 shares authorized; 28,133,850 shares issued and outstanding as of June 30, 2026; 27,888,217 shares issued and 27,610,486 shares outstanding as of  June 30, 2025, respectively 281   279 Additional paid-in capital 150,483   149,969 Retained earnings 1,899   4,479 Accumulated other comprehensive loss (10,808)  (9,403)Treasury stock, at cost; 0 and 277,731 shares as of June 30, 2026 and June 30, 2025; —   (2,608)Total stockholders' equity 141,855   142,716 Total liabilities and stockholders’ equity$602,605  $600,256          Matrix Service Company
Condensed Consolidated Statements of Cash Flows
 (In thousands)
  Three Months Ended Fiscal Years Ended June 30,
2026 June 30,
2025 June 30,
2026 June 30,
2025        Operating activities:       Net income (loss)$1,142  $(11,272) $(2,580) $(29,462)Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:       Depreciation and amortization 1,936   2,474   8,640   10,012 Stock-based compensation expense 1,669   2,150   7,145   8,904 Operating lease impairment due to restructuring 520   —   2,935   — Loss (gain) on disposal of property, plant and equipment (149)  130   (606)  8 Other (90)  126   146   234 Changes in operating assets and liabilities increasing (decreasing) cash:       Accounts receivable, net of allowance for credit losses 4,746   40,006   (11,296)  (48,796)Costs and estimated earnings in excess of billings on uncompleted contracts (4,314)  8,803   533   4,129 Inventories (181)  472   (273)  2,922 Other assets and liabilities 2,913   2,811   (2,398)  (2,309)Accounts payable 18,595   1,859   27,747   14,814 Billings on uncompleted contracts in excess of costs and estimated earnings (40,757)  (9,064)  (23,646)  152,285 Accrued expenses 5,160   2,213   560   4,730 Net cash provided (used) by operating activities (8,810)  40,708   6,907   117,471 Investing activities:       Capital expenditures (1,379)  (2,260)  (5,483)  (7,685)Proceeds from sale of property, plant and equipment 459   3   1,942   240 Net cash used by investing activities (920)  (2,257)  (3,541)  (7,445)Financing activities:       Payment of debt amendment fees —   —   (149)  — Proceeds from issuance of common stock under employee stock purchase plan 58   46   202   195 Payments related to tax withholding for stock-based compensation —   —   (4,223)  (1,235)Net cash provided (used) by financing activities 58   46   (4,170)  (1,040)Effect of exchange rate changes on cash (383)  603   (871)  40 Net increase (decrease) in cash and cash equivalents (10,055)  39,100   (1,675)  109,026 Cash, cash equivalents and restricted cash, beginning of period 258,021   210,541   249,641   140,615 Cash, cash equivalents and restricted cash, end of period$247,966  $249,641  $247,966  $249,641 Supplemental disclosure of cash flow information:       Cash paid during the period for:       Income taxes$218  $289  $312  $328 Interest$78  $79  $378  $395                  Matrix Service Company
Results of Operations
 (In thousands)
  Storage and
Terminal
Solutions Utility and
Power
Infrastructure Process and
Industrial
Facilities Corporate Total Three Months Ended June 30, 2026Total revenues (1)$137,364  $73,520  $33,647  $—  $244,531 Cost of revenue (128,516)  (64,102)  (32,667)  236   (225,049)Gross profit 8,848   9,418   980   236   19,482 Selling, general and administrative expenses 5,808   2,096   1,683   7,359   16,946 Restructuring costs and other 767   279   149   2,232   3,427 Operating income (loss)$2,273  $7,043  $(852) $(9,355) $(891)(1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions and were $0.8 million for the three months ended June 30, 2026. Storage and
Terminal
Solutions Utility and
Power
Infrastructure Process and
Industrial
Facilities Corporate Total Three Months Ended June 30, 2025Total revenue (1)$96,091  $73,027  $47,259  $—  $216,377 Cost of revenue (97,136)  (66,365)  (44,475)  (279)  (208,255)Gross profit (loss) (1,045)  6,662   2,784   (279)  8,122 Selling, general and administrative expenses 6,058   2,290   2,708   6,525   17,581 Restructuring costs and other 323   594   138   2,393   3,448 Operating income (loss)$(7,426) $3,778  $(62) $(9,197) $(12,907)(1) Total revenues are net of inter-segment revenues which are primarily Process and Industrial Facilities and were $0.2 million for the three months ended June 30, 2025.           Storage and
Terminal
Solutions Utility and
Power
Infrastructure Process and
Industrial
Facilities Corporate Total Fiscal Year Ended June 30, 2026Total revenue (1)$458,296  $283,390  $131,946  $—  $873,632 Cost of revenue (430,425)  (251,798)  (127,431)  (26)  (809,680)Gross profit 27,871   31,592   4,515   (26)  63,952 Selling, general and administrative expenses 22,091   9,389   6,066   26,061   63,607 Restructuring costs and other 2,649   1,855   1,019   4,440   9,963 Operating income (loss)$3,131  $20,348  $(2,570) $(30,527) $(9,618)(1) Total revenues are net of inter-segment revenues which are primarily Storage and Terminal Solutions and were $3.1 million for the year ended June 30, 2026. Storage and
Terminal
Solutions Utility and
Power
Infrastructure Process and
Industrial
Facilities Corporate Total Fiscal Year Ended June 30, 2025Total revenue (1)$365,891  $248,691  $154,704  $—  $769,286 Cost of revenue (351,236)  (231,776)  (145,794)  (803)  (729,609)Gross profit (loss) 14,655   16,915   8,910   (803)  39,677 Selling, general and administrative expenses 23,538   12,363   8,293   26,979   71,173 Restructuring costs and other 323   718   138   2,393   3,572 Operating income (loss)$(9,206) $3,834  $479  $(30,175) $(35,068)(1) Total revenues are net of inter-segment revenues which are primarily Process and Industrial Facilities and were $2.1 million for the year ended June 30, 2025.  Backlog

Matrix defines backlog as the total dollar amount of revenue that the Company expects to recognize as a result of performing work that has been awarded to the Company through a signed contract, limited notice to proceed or other type of assurance that the Company considers firm.  The following arrangements are considered firm:

fixed-price awards;minimum customer commitments on cost plus arrangements; andcertain time and material arrangements in which the estimated value is firm or can be estimated with a reasonable amount of certainty in both timing and amounts. For long-term maintenance contracts with no minimum commitments and other established customer agreements, the Company includes only the amounts that it expects to recognize as revenue over the next 12 months. For arrangements in which it has received a limited notice to proceed, the Company includes the entire scope of work in its backlog if it concludes that the likelihood of the full project proceeding has a high probability. For all other arrangements, Matrix calculates backlog as the estimated contract amount less revenue recognized as of the reporting date.

Three Months Ended June 30, 2026

 Storage and Terminal
Solutions Utility and Power
Infrastructure Process and
Industrial Facilities Total (In thousands)Backlog as of March 31, 2026$747,322  $189,447  $91,898  $1,028,667 Project awards 31,201   29,805   108,036   169,042 Revenue recognized (137,364)  (73,520)  (33,647)  (244,531)Backlog as of June 30, 2026$641,159  $145,732  $166,287  $953,178 Book-to-Bill Ratio (1)0.2x
  0.4x
  3.2x
  0.7x
          (1) Calculated by dividing project awards by revenue recognized.

Fiscal Year Ended June 30, 2026

 Storage and Terminal
Solutions Utility and Power
Infrastructure Process and
Industrial Facilities Total (In thousands)Backlog as of June 30, 2025$770,095  $346,384  $265,629  $1,382,108 Project awards 329,360   126,977   185,324   641,661 Other adjustment (2) —   (44,239)  (152,720)  (196,959)Revenue recognized (458,296)  (283,390)  (131,946)  (873,632)Backlog as of June 30, 2026$641,159  $145,732  $166,287  $953,178 Book-to-Bill Ratio (1)0.7x
  0.4x
  1.4x
  0.7x
          (1) Calculated by dividing project awards by revenue recognized.

(2) Previous project awards removed from backlog.

Non-GAAP Financial Measures

Adjusted Net Income (Loss)

Matrix has presented Adjusted net income (loss), which the Company defines as Net income (loss) before Restructuring costs and other expenses, and the tax impact of this adjustment, because the Company believes it better depicts its core operating results.  The Company believes that the line item on our Consolidated Statements of Income entitled “Net income (loss)” is the most directly comparable GAAP measure to Adjusted net income (loss). Since Adjusted net income (loss) is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, Net income (loss) as an indicator of operating performance. Adjusted net income (loss), as Matrix calculates it, may not be comparable to similarly titled measures employed by other companies. In addition, this measure is not a measure of our ability to fund the Company's cash needs. As Adjusted net income (loss) excludes certain financial information compared with Net income (loss), the most directly comparable GAAP financial measure, users of this financial information should consider the type of events and transactions that are excluded. The Company's non-GAAP performance measure, Adjusted net income (loss), has certain material limitations as follows:

It does not include restructuring costs and other expenses. Restructuring costs represent material costs that were incurred and are oftentimes cash expenses.  Therefore, any measure that excludes restructuring costs has material limitations. A reconciliation of Net income (loss) to Adjusted net income (loss) follows:

Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)
(In thousands, except per share data)
  Three Months Ended Fiscal Years Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025Net income (loss), as reported$1,142 $(11,272) $(2,580) $(29,462)Restructuring costs and other 3,427  3,448   9,963   3,572 Tax impact of adjustments and other net tax items (1) —  —   —   — Adjusted net income (loss)$4,569 $(7,824) $7,383  $(25,890)        Income (loss) per fully diluted share, as reported$0.04 $(0.40) $(0.09) $(1.06)Adjusted income (loss) per fully diluted share$0.16 $(0.28) $0.26  $(0.93)                (1)Represents the tax impact of the adjustments to Net loss, calculated using the applicable effective tax rate of the adjustment. Due to the existence of valuation allowances on our deferred tax assets and net operating losses, there was no tax impact of any of the adjustments in any period presented.   Adjusted EBITDA

Matrix has presented Adjusted EBITDA, which the Company defines as net loss before gain on sale of assets, stock-based compensation, interest expense, interest income, income taxes, and depreciation and amortization, because it is used by the financial community as a method of measuring the Company's performance and of evaluating the market value of companies considered to be in similar businesses. Matrix believes that the line item on our Consolidated Statements of Income entitled “Net loss” is the most directly comparable GAAP measure to Adjusted EBITDA. Since Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, net earnings as an indicator of operating performance. Adjusted EBITDA, as the Company calculates it, may not be comparable to similarly titled measures employed by other companies. In addition, this measure is not a measure of our ability to fund the Company's cash needs. As Adjusted EBITDA excludes certain financial information compared with net loss, the most directly comparable GAAP financial measure, users of this financial information should consider the type of events and transactions that are excluded. Our non-GAAP performance measure, Adjusted EBITDA, has certain material limitations as follows:

It does not include interest expense. Because the Company may borrow money to finance our operations and to acquire businesses, has paid commitment fees to maintain the Company's senior secured revolving credit facility, and has incurred fees to issue letters of credit under the senior secured revolving credit facility, interest expense is a necessary and ongoing part of the Company's costs and has assisted the Company in generating revenue. Therefore, any measure that excludes interest expense has material limitations.It does not include interest income. Because the Company has cash invested in certain investment accounts and has earned interest income on these investments, any measure that excludes interest income has material limitations.It does not include income taxes. Because the payment of income taxes is a necessary and ongoing part of the Company's operations, any measure that excludes income taxes has material limitations.It does not include depreciation or amortization expense. Because Matrix uses capital and intangible assets to generate revenue, depreciation and amortization expense is a necessary element of the Company's cost structure. Therefore, any measure that excludes depreciation or amortization expense has material limitations.It does not include restructuring costs. Restructuring costs represent material costs that were incurred and are oftentimes cash expenses.  Therefore, any measure that excludes restructuring costs has material limitations.It does not include equity-settled stock-based compensation expense. Stock-based compensation represents material amounts of equity that are awarded to the Company's employees and directors for services rendered. While the expense is non-cash, the Company has historically released vested shares out of treasury stock, which has been replenished by using cash to periodically repurchase our stock. Therefore, any measure that excludes stock-based compensation has material limitations. A reconciliation of Net loss to Adjusted EBITDA follows:

Reconciliation of Net Loss to Adjusted EBITDA
(In thousands)
  Three Months Ended Fiscal Years Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025Net income (loss)$                   1,142  $               (11,272) $                 (2,580) $               (29,462)Interest expense                         107                           150                           437                           518 Interest income                    (2,182)                     (1,984)                     (7,717)                     (6,652)Provision for federal, state and foreign income taxes                           89                           448                           356                           464 Depreciation and amortization                      1,936                        2,474                        8,640                      10,012 Restructuring costs and other(2)                      3,512                        3,217                        9,748                        3,341 Stock-based compensation(1)                      1,669                        2,150                        7,145                        8,904 Adjusted EBITDA$                   6,273  $                 (4,817) $                 16,029  $               (12,875) (1) Represents only the equity-settled portion of our stock-based compensation expense.

(2) Restructuring costs excludes equity-settled stock-based compensation expense incurred in conjunction with employee terminations.

In Brief

Posted:

Image Credits:John MACDOUGALL / AFP / Getty Images Delivery Hero’s board has signed off on Uber’s $15 billion takeover offer and recommended shareholders approve the deal, which would create one of the largest on-demand food delivery platforms in the world.

After reviewing the offer, Delivery Hero’s supervisory and management boards said it was in the best interests of the company, its shareholders, employees, and other stakeholders. The boards also deemed that the price was “fair and adequate” and said the deal had the “potential to accelerate product innovation.”

The deal, if approved, would double Uber’s global footprint and make its delivery platform one of the largest in the world outside of China. It could also put Uber in a better position to compete with DoorDash and Just Eat Takeaway.

Uber, which was already the largest shareholder in Delivery Hero, set a minimum acceptance threshold of 50%, plus one share of Delivery Hero’s outstanding share capital.

Prosus, another major shareholder, has agreed to sell its 17% stake in Delivery Hero as well, according to the announcement. Delivery Hero previously agreed to sell its businesses in 14 markets where Uber Eats already operates to New York-based investment firm SSW Partners for $1.6 billion.

The tie-up is the latest example of consolidation in the on-demand delivery industry. In the past 18 months, Uber agreed to acquire Turkey-based Getir for $335 million, Grab said it would buy Delivery Hero’s Foodpanda business in Taiwan for $600 million in cash, and DoorDash said it would pay $3.87 billion for the U.K.’s Deliveroo.

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Key Takeaways AMD and HUMAIN have launched MI355X-based AI systems in Saudi Arabia for training and inference workloads.AMD, Cisco and HUMAIN plan up to 250 MW of new AI infrastructure from 2027, targeting 1 GW by 2030.AMD expects server revenues to grow more than 70% in 2027 as Helios and MI450 deployments accelerate. Advanced Micro Devices (AMD - Free Report) , Cisco Systems (CSCO - Free Report) and HUMAIN have expanded their artificial intelligence (AI) infrastructure collaboration in Saudi Arabia, with AMD Instinct MI355X GPU-based systems now live and serving customers in the Kingdom and overseas. The production infrastructure combines AMD Instinct MI355X GPUs and EPYC CPUs with Cisco Silicon One-based networking and 800G optics, enabling HUMAIN to offer GPU-as-a-service for AI training and inference workloads.

The companies are now preparing a significantly larger deployment. AMD, Cisco and HUMAIN plan to deploy up to 250 megawatts (MW) of additional AI infrastructure beginning in 2027. The next phase will use AMD Instinct MI400 Series GPUs, EPYC CPUs and ROCm software alongside Cisco networking and critical infrastructure. Capacity is expected to start coming online in the second half of 2027. The joint venture remains on track to deploy up to 1 gigawatt (GW) of AI infrastructure by 2030, supported by growing demand for sovereign AI capacity. This is expected to boost AMD’s competitive position against NVIDIA (NVDA - Free Report) and Broadcom (AVGO - Free Report) .

The platform is aimed at governments, enterprises, research institutions, AI developers and model providers that require locally operated infrastructure. AMD is designed to support open models and software while giving customers greater control over data residency, model customization, deployment and governance. This strengthens AMD's presence in the growing sovereign AI market while broadening the geographic reach of its data-center AI portfolio.

The HUMAIN expansion should strengthen AMD’s Data Center business by adding another large-scale deployment for its Instinct GPUs, EPYC CPUs and ROCm software. AMD’s Data Center revenues surged 107% year over year to $6.7 billion in second-quarter 2026, driven by strong demand for EPYC processors and the ongoing ramp of Instinct GPUs. AMD expects growing Helios and MI450-series deployments to drive significant Data Center AI growth, with acceleration in 2027. The company currently expects server revenues to grow more than 70% in 2027 and total Data Center segment revenues to more than double year over year.

The deal also expands AMD’s exposure to sovereign AI, an area where Instinct adoption was already increasing. AMD noted that Instinct sales more than doubled year over year as adoption broadened across AI labs, cloud providers, AI startups, national laboratories and sovereign AI deployments. The HUMAIN project could strengthen AMD's position as countries invest in domestic AI infrastructure to retain greater control over data, models and computing capacity.

Tough Competition Hurts AMD’s ProspectsNVIDIA remains AMD’s biggest challenge in data center AI, owing to its scale, full-stack platform and entrenched CUDA ecosystem. NVIDIA’s second-quarter fiscal 2027 Data Center revenues reached $89 billion, with hyperscale revenues of $49 billion, and its ACIE business, which includes NeoCloud, enterprise and sovereign customers, reaching $40 billion. NVIDIA also expects roughly 70% revenue growth in fiscal 2028 despite remaining supply constrained. This scale gives it substantially greater resources and customer reach as AMD attempts to expand Instinct and Helios deployments.

Broadcom creates a different but increasingly important threat through custom AI accelerators, or XPUs, and networking. Broadcom’s AI semiconductor revenues surged 143% year over year to $10.8 billion in second-quarter fiscal 2026, with bookings exceeding $30 billion. The company expects AI semiconductor revenues of $56 billion in fiscal 2026 and more than $100 billion in fiscal 2027. Broadcom has multi-generation programs with Google, plans additional TPU-based capacity for Anthropic, has a 1.3-GW OpenAI commitment for 2027 and expects to deploy 3 GW of Meta MTIA XPUs through 2028. AVGO’s leadership in Ethernet switching, SerDes, co-packaged optics and interconnect also strengthens its position because these technologies are critical to scaling both XPU and GPU clusters.

AMD’s Share Price Performance, Valuation & EstimatesAMD shares have jumped 114.6% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 15.5%.

AMD Stock’s Price Performance
Image Source: Zacks Investment Research

AMD stock is overvalued, with a forward 12-month price/sales of 10.41X compared with the broader sector’s 6.03X. AMD has a Value Score of F.

AMD ValuationThe Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $1.90 per share, up a couple of cents over the past 30 days, suggesting 58.33% year-over-year growth.

AMD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NEW YORK--(BUSINESS WIRE)--Citi announced today that it has successfully processed live transactions on Swift’s blockchain-based ledger, marking a significant milestone in its strategy to deliver always-on, cross-currency, and interoperable payment solutions for its institutional clients. As the first U.S. bank to conduct live native ledger transactions, Citi has collaborated with First Abu Dhabi Bank (FAB) and Oversea-Chinese Banking Corporation (OCBC) on this global initiative.

The initiative is a key part of the strategy for Citi’s Services business to advance its digital asset capabilities across cash and securities. It builds on newly integrated solutions, such as 24/7 USD Clearing, Citi Token Services, and Citi Custody+, to enable real-time, multi-bank, cross-border payments, as well as securities and collateral management for corporate and institutional clients. Citi’s 24/7 USD Clearing solution serves over 300 bank clients globally, and Citi Token Services processes around $1 billion in transactions through its blockchain-based platform. This reflects the natural evolution of a core focus for Citi Services: delivering instant, real-time, and always-on capabilities that bridge its payments and securities infrastructure with the emerging landscape of tokenized multi-bank networks and assets.

The live transactions already completed, include the first to be processed in the Middle East region with FAB, and the first in the Southeast Asia region with OCBC. These operations are an important step in demonstrating the viability of using distributed ledger technology to provide uninterrupted, 24/7 payments and settlements that are not restricted by traditional cut-off times or weekend closures. Citi expects to conduct similar transactions with other key collaborators later this month including DBS and United Overseas Bank (UOB). The pilot transactions are intended to be part of a focused, controlled proof-of-concept phase running from July to December 2026.

The use of shared blockchain infrastructure to support the movement of tokenized deposits and more broadly, securities, will also create a more efficient market for instant cross-border payments and securities settlements. The global pilot on Swift’s blockchain ledger is a primary example of this, demonstrating our commitment to supporting an interoperable ecosystem in cash and securities.

Debopama Sen, Head of Payments within Citi’s Services business said: "We are proud to be a leader in this pivotal initiative, working alongside Swift and our esteemed bank collaborators to continue to transform the landscape of always-on payments, settlements and liquidity. This pilot represents a crucial step in exploring how we can leverage the power of shared ledger technology to create a more efficient, interoperable, and always-on global financial system that supports both payments and collateral movement. Our active engagement in the design and execution of Swift’s ledger MVP ensures that our clients' interests are at the forefront as we shape the future of interoperability between digital and traditional currencies."

Swift’s ledger initiative is designed to bridge traditional finance with the emerging world of digital assets. It utilizes a shared blockchain-based infrastructure to enable instant payment commitment through tokenized deposits, while leveraging the safety and trust of existing settlement models, including real-time gross settlement (RTGS) for final settlement. This innovative model promises key benefits such as 24/7/365 service, faster credit for beneficiaries, and improved liquidity efficiency for banks.

Rachel Chew, Group Chief Operating Officer and Co-Head of Digital Assets, Global Transaction Services at DBS, said: "Initiatives such as the Swift Digital Ledger are bridging traditional banking infrastructures with emerging digital networks. By fostering deeper interoperability across these different ecosystems, we can achieve seamless transactions and establish common standards, which are essential for the wider adoption of tokenized money."

Carmen Chan, Deputy Head of Global Transaction Banking at Singapore’s OCBC, added: “Our successful live pilot transactions with Citi marks an important step towards enabling bank-issued digital money to move efficiently and securely across borders. For corporates, this could mean faster access to funds, greater payment certainty and improved liquidity management in an increasingly always-on economy. Interoperable shared infrastructure can help connect banking networks across jurisdictions while preserving the trust and reach of the global banking system. We look forward to continuing our collaboration with Swift and our banking partners to advance more efficient, transparent and resilient global payments.”

So Lay Hua, Head of Group Transaction Banking, UOB said, “Our upcoming U.S. dollar transaction with Citi on Swift’s ledger underscores the power of industry collaboration in building the next generation of payment infrastructure. These transactions demonstrate how banks can enable faster, more seamless and interoperable payment flows across markets. As the One Bank for ASEAN, UOB is committed to contributing our regional network and transaction banking expertise to shape the future of payments.”

About Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.

Additional information may be found at www.citigroup.com | X: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi

More News From Citigroup Inc.

Hewlett Packard Enterprise (HPE.N) raised its annual forecasts on Wednesday after reporting quarterly results that beat Wall Street expectations, ​as surging AI-related demand across networking and servers drove growth across its ‌business.

Shares of the company, however, fell 8% in extended trading.

HPE's high-powered servers, which are essential for building and training AI models, have been in high demand from cloud computing giants and large ​enterprises.

Enterprise IT infrastructure spending is strengthening, driven by continued investment in AI, ​server refresh cycles and rising demand for data center capacity, Citi ⁠analysts have said.

"It's clear to us that the market, the tailwinds in AI, ​particularly the adoption of AI in the enterprise, is really starting to settle in," ​CFO Marie Myers told Reuters in an interview.

HPE expects enterprise adoption of AI to support growth beyond the current fiscal year, Myers said, after customers spent fiscal 2025 and 2026 testing AI ​systems and beginning deployments that are showing productivity gains.

HPE on Wednesday also announced an ​expansion to its collaboration with Oracle (ORCL.N) to help scale the software giant's global AI infrastructure, deploying ‌HPE ⁠Juniper Networking equipment across Oracle's AI data centers.

Myers noted that supply remained constrained, with memory being the main bottleneck, followed by NAND, CPUs and drives, though HPE has signed longer-term supply agreements to improve access to components.

"Demand is far outstripping supply."

HPE forecast ​fiscal 2026 revenue ​growth of 34% ⁠to 37%, up from 29% to 33% previously, and raised its adjusted earnings forecast to between $3.75 and $3.85 per share, from $3.35 and $3.45.

For ​fiscal 2027, HPE now projects revenue growth of 13% to 17%, ​up from ⁠8% to 12%, with adjusted EPS growth of 16% to 20%, versus 12% to 16% forecast previously.

Third-quarter revenue grew 33.6% to $12.21 billion, beating estimates of $11.91 billion. HPE earned $1.11 ⁠per share ​on an adjusted basis, ahead of estimates of ​93 cents.

HPE's results follow strong forecasts from rivals Dell (DELL.N) and Super Micro (SMCI.O) as Big Tech's AI spending is set to ​exceed $730 billion this year.

Key Takeaways IBM, Microsoft, Alphabet, Amazon and NVIDIA offer quantum exposure beyond pure-play hardware.Cloud access and hybrid quantum-classical computing are shifting the opportunity toward infrastructure.NVIDIA's CUDA-Q and NVQLink connect quantum processors with accelerated computing for hybrid workloads. Pure-play quantum stocks delivered powerful gains earlier in 2026, only to face a reset as investors began demanding stronger evidence of revenue conversion and commercialization. IonQ shares, for example, declined 5.4% after its second-quarter results, while Rigetti and D-Wave shares have lost 10.7% and 22.7%, respectively, since August 5.

The sharp volatility in pure-play quantum stocks indicates the risks of betting solely on companies whose valuations depend heavily on future commercialization. However, the opportunity in this space remains substantial. IBM (IBM - Free Report) , Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) , Amazon (AMZN - Free Report) and NVIDIA (NVDA - Free Report) are building different layers of the quantum ecosystem, from quantum processors and cloud platforms to software and the classical computing infrastructure needed to run quantum systems. This gives investors a way to participate in the sector's momentum without taking the full balance-sheet and valuation risks associated with pure plays.

Quantum Momentum Meets a More Difficult MarketThe near-term quantum opportunity is increasingly about access and infrastructure rather than standalone quantum hardware sales. Cloud platforms allow enterprises and researchers to experiment with quantum systems without owning specialized hardware, while hybrid quantum-classical architectures rely heavily on conventional high-performance computing.

The market backdrop makes that distinction even more important. U.S. inflation remained elevated in July, with CPI rising 3.4% year over year and core CPI increasing 2.5% (The Bureau of Labor Statistics Data). On Sept. 1, the S&P 500 fell 0.71% and the Nasdaq declined 1.03% as oil prices and Treasury yields moved higher. The 10-year Treasury yield reached 4.79%.

Higher yields generally put greater pressure on long-duration growth assets, making cash-generating, diversified technology companies a more defensible way to gain exposure to emerging technologies.

Where Does the Opportunity Lie?The next few months of 2026 are likely to be driven less by headline qubit counts and more by commercial milestones, cloud adoption, partnerships and integration with existing computing infrastructure.

That favors companies able to fund quantum investment from established businesses. It also creates an important distinction for investors: a stock does not have to be a pure quantum company to benefit from quantum adoption.

For investors seeking greater risk-adjusted return potential, the strategy should therefore be to prioritize companies where quantum represents an additional growth opportunity.

Against this backdrop, the following five stocks stand out for their strong positioning across quantum computing, cloud infrastructure and accelerated computing.

Stocks in FocusIBM: It offers the most direct exposure in quantum. The company committed more than $10 billion over five years to quantum, spanning R&D, manufacturing, capital investment, partnerships and M&A. IBM has more than 340 organizations in its quantum network and targets fault-tolerant quantum computing with Starling in 2029. Its recent HRL Laboratories acquisition further expands capabilities in silicon-spin qubits, cryogenics, control electronics and quantum interconnects.

IBM currently trades at 17.9X forward 12-month earnings, below the S&P 500’s 20.1X, indicating a relatively attractive valuation compared with the index members. Meanwhile, the Zacks Consensus Estimate for 2026 earnings indicates 6.4% growth on a 4.5% revenue growth projection. The stock carries a Zacks Rank #3 (Hold).

Image Source: Zacks Investment Research

Microsoft: It provides quantum exposure through its Azure ecosystem and proprietary hardware research. Its Majorana 2 processor uses a topological-qubit approach, with Microsoft reporting a 1,000-fold improvement in qubit lifetime versus its previous generation. Microsoft expects a scalable quantum computer by 2029. Beyond hardware, Microsoft's cloud and software infrastructure provides an established channel for quantum development and hybrid workloads, making quantum an additional growth opportunity rather than its core revenue driver.

MSFT currently trades at 24.78X forward 12-month earnings. The Zacks Consensus Estimate for fiscal 2027 earnings indicates 9.1% growth on a 17.2% revenue growth projection. The stock carries a Zacks Rank #3.

Image Source: Zacks Investment Research

Alphabet: Its Google Quantum AI remains a leading quantum research program. In 2026, Google expanded beyond its established superconducting approach into neutral-atom quantum computing, giving it exposure to two different architectures. The move could help reduce technology concentration risk as the industry continues to evaluate competing approaches to scalability, error correction and commercial deployment.

GOOGL currently trades at 20.14X forward 12-month earnings. The Zacks Consensus Estimate for 2026 earnings indicates 89.6% growth on a 26% revenue growth projection. The stock carries a Zacks Rank #3.

Image Source: Zacks Investment Research

Amazon: Its quantum opportunity is primarily an AWS cloud and infrastructure play. Amazon Braket provides access to multiple quantum hardware technologies through a unified cloud service, allowing customers to experiment without owning quantum systems. AWS also expanded its collaboration with QuEra to bring fault-tolerant quantum computing to Amazon Braket, with scientifically relevant applications targeted to begin in 2028.

AMZN currently trades at 26.13X forward 12-month earnings. The Zacks Consensus Estimate for 2026 earnings indicates 82.2% growth on a 15.7% revenue growth projection. The stock carries a Zacks Rank #2 (Buy).

Image Source: Zacks Investment Research

NVIDIA: The company represents the infrastructure side of the quantum opportunity. Its CUDA-Q platform connects CPUs, GPUs and QPUs for hybrid quantum-classical workloads and supports multiple quantum hardware modalities. NVIDIA says CUDA-Q integrates with 75% of publicly available QPUs. Its NVQLink platform further connects quantum processors with accelerated computing for applications including error correction and hybrid workloads. This positions NVIDIA to benefit from quantum-classical integration without depending on a single QPU architecture.

NVDA currently trades at 17.51X forward 12-month earnings. The Zacks Consensus Estimate for fiscal 2027 earnings indicates 93.3% growth on an 87.4% revenue growth projection. The stock carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Image Source: Zacks Investment Research

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The coming week could be pivotal for Oracle and the AI complex. The day after OpenAI Foundation's presentation at the Goldman Sachs Communications & Technology conference, Oracle reports earnings amid enormous enthusiasm for its role in the AI infrastructure buildout precisely at a time when questions surrounding OpenAI's enormous infrastructure commitments, to Oracle particularly, are becoming increasingly important.

Wall Street is decidedly optimistic: 42 Buy ratings, eight Holds and just one Sell. Expectations call for roughly 28% constant-currency revenue growth, versus 11% a year ago, while adjusted EPS may rise closer to 18.5%. Revenues are growing faster than earnings. Contrast that with some hardware suppliers, like Micron, whose revenues are expected to finish their fiscal year ending 8/31/26 246% higher, while EPS is expected to rise more than 840% over the same period. One is capitalizing on outsized demand and pricing power - the other is footing the bill.

Cloud infrastructure remains the centerpiece of the bull case. Oracle's OCI business has been growing explosively, and management is guiding to 27%-29% overall revenue growth this quarter. 

Amazon, Alphabet and Meta are already deploying essentially all (or slightly more) of the cash their businesses generate into AI infrastructure. Oracle is different. Its existing balance sheet is already more leveraged, and it is relying more heavily on external financing as a percentage of anticipated spend.

To the bulls, that's attractive because Oracle offers greater financial and operating leverage to an AI boom. But if you're not named Pollyanna, average it tends to clip one's wings just as predators approach, and Oracle's competitors are formidable. The options market recognizes the uncertainty. Options imply a move greater than 10% by the end of next week, which is in line with the average over the last two years.

So how to play it?

Trade: With ORCL around the mid-$140s, consider the following structure. Sometimes referred to as a "double diagonal", I more commonly refer to this as a strangle swap.

In this structure, sell the September 25th weekly 125/167.50 strangle (simultaneously selling the 125 puts and 167.5 calls) while buying the January 115/195 strangle, for a net debit of roughly $8.30. Based on current pricing, the position has an estimated probability of profit above 70%, with approximate expiration breakevens around $118 on the downside and $180 on the upside. Those levels represent moves of roughly 17%-18% in either direction.

Those are big moves, because I think some big moves are possible. The coming week could be pivotal for Oracle. The day after OpenAI Foundation's presentation at the Goldman Sachs Communications & Technology conference, Oracle reports earnings amid enormous enthusiasm for its role in the AI infrastructure buildout precisely at a time when questions surrounding OpenAI's enormous infrastructure commitments, to Oracle particularly, are becoming increasingly important.

Rather than paying heavily for that near-term volatility or betting outright against a stock with tremendous momentum, the September/January strangle swap sells the expensive earnings, betting the bulls and bears may duke it out for a few more months while retaining longer-dated protection against a genuinely outsized move.

If earnings are merely good, or merely bad, rather than transformational, rapid decay (aka "vol crush") in the September options should work in our favor. And if Oracle (or OpenAI) delivers a shock, negative or positive, the January wings give us something the naked premium seller doesn't have; more time.

DISCLOSURES: Tidal holds positions in all the publicly traded securities mentioned.

Lemonade Car with Tesla FSD (Supervised) pricing available now

, /PRNewswire/ -- Lemonade (NYSE: LMND), the tech-first insurance company, today announced the launch of Lemonade Car in Missouri, along with Lemonade Autonomous Car, giving Missouri Tesla drivers 50% off every mile driven using Full Self-Driving (Supervised) on day one.

"Missouri drivers are getting Lemonade Car and Lemonade Autonomous Car at the same time, which is a first for us," said Shai Wininger, President and Co-Founder of Lemonade. "Tesla's safe FSD (Supervised) tech reduces the chances of getting into an accident. Our intelligent pricing models see this in the data and can pass real savings, with high precision, on to Tesla customers, right from the start."

Missouri drivers can now get a quote in seconds through the Lemonade app or at lemonade.com/car and Tesla owners can enroll in Autonomous Car pricing at tesla.lemonade.com/fsd.

Further savings are available when bundled with Lemonade Renters, Pet, or Home insurance.

About Lemonade

Lemonade's mission is to become the most loved insurance company in the world. As a customer-centric tech company, we created an insurance experience across Renters, Home, Pet, Car, and Life that is smart, instant, and delightful. Our team of 1,200+ Lemonade Makers makes it possible for over 3M customers throughout the US, UK and Europe to get coverage instantly, with nearly half of claims paid in a matter of seconds. Powered by AI and social impact, Lemonade is a purpose-built, technology-first insurance carrier. A Certified B-Corp, our commitment to social impact is embedded in every aspect of the company, and our Giveback program, which donates a percentage of leftover premiums to nonprofits selected by our community, has donated over $10M to organizations in need.

SOURCE Lemonade, Inc.

CrowdStrike Extends Its Endpoint Advantage to Secure the Software Supply Chain Fal.Con 2026-- CrowdStrike (NASDAQ: CRWD) today introduced Real-Time Supply Chain Attack Protection, a new Falcon platform innovation that blocks malicious open-source packages at the endpoint before their embedded code can run.

AI has changed how software gets built. Coding agents now assemble applications from open-source packages pulled off public registries at machine speed, faster than anyone can review what comes in. A poisoned package runs its code on the endpoint the moment it installs. The endpoint is the point of execution, and where the Falcon sensor already operates. CrowdStrike blocks malicious packages in real time, before that code can run.

“Attackers know that compromising one trusted package can give them a path into thousands of organizations. That makes the software supply chain one of the most powerful attack surfaces in the AI era,” said Michael Sentonas, president of CrowdStrike. “The endpoint is where malicious code executes, and only CrowdStrike turns it into the control point that stops the attack.”

Software Supply Chain Risk Converges on the Endpoint

Adversaries have industrialized poisoning the packages enterprises trust. CrowdStrike's 2026 Threat Hunting Report found DPRK-nexus adversary STARDUST CHOLLIMA poisoned 131 trusted AI framework packages, while eCrime actor ALTERED SPIDER compromised more than 300 software dependencies in a single day. The risk no longer stops at engineering. As AI agents spread across the business, any endpoint can pull a package to finish a task, and the attack surface widens to the whole enterprise.

A poisoned package does not look like malware. It arrives as an ordinary file and runs its code the moment it installs. Legacy endpoint tools were built to catch executables, not to govern the packages that assemble AI software. Standalone scanners, proxies, and browser-based tools flag compromises days after poisoned packages have already landed. If not stopped at the endpoint before embedded scripts execute, a poisoned package moves downstream, giving adversaries a foothold.

Stopping Malicious Packages Before They Run

CrowdStrike Real-Time Supply Chain Attack Protection stops malicious packages the moment they reach the endpoint, intercepting at the command line, before any embedded script runs. Because CrowdStrike already enforces at that checkpoint through the same sensor, adversary intelligence, and response orchestration securing the endpoint, protection carries forward into whatever the package tries to do next: execution, credential access, lateral movement. No new agent, and no coverage gaps.

Block Malicious Packages at Download: The Falcon sensor intercepts open-source package manager transactions – npm install, pip install – across npm and PyPI on Windows, macOS, and Linux, before any embedded script runs. Protection extends to every endpoint where agentic applications run, not just developer workstations.Stop the Attack Before it Starts: Security teams can set granular controls to govern what code reaches their endpoints – including minimum package age requirements – so the most common vector of supply chain compromise never gets a foothold.Automated Investigation and Response: The moment a package is flagged, CrowdStrike automatically runs a lookback across every endpoint and triggers remediation through Charlotte Agentic SOAR.Global Package Inventory: Delivers complete visibility into every software package installed across every endpoint, so when a package is compromised, security teams know exactly where it lives and can act immediately.Securing the Software Enterprises Build on AI

Software will only be built faster and with more automation. CrowdStrike makes the endpoint the control point for the software supply chain, so enterprises can build on AI without leaving the door open to the adversary. To learn more, read our blog and visit here.

About CrowdStrike

CrowdStrike (NASDAQ: CRWD), a global cybersecurity leader, has redefined modern security with the world’s most advanced cloud-native platform for protecting critical areas of enterprise risk – endpoints and cloud workloads, identity and data.

Powered by the CrowdStrike Security Cloud and world-class AI, the CrowdStrike Falcon® platform leverages real-time indicators of attack, threat intelligence, evolving adversary tradecraft, and enriched telemetry from across the enterprise to deliver hyper-accurate detections, automated protection and remediation, elite threat hunting, and prioritized observability of vulnerabilities.

Purpose-built in the cloud with a single lightweight-agent architecture, the Falcon platform delivers rapid and scalable deployment, superior protection and performance, reduced complexity, and immediate time-to-value.

CrowdStrike: We stop breaches.

Learn more: https://www.crowdstrike.com/
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© 2026 CrowdStrike, Inc. All rights reserved. CrowdStrike and CrowdStrike Falcon are marks owned by CrowdStrike, Inc. and are registered in the United States and other countries. CrowdStrike owns other trademarks and service marks and may use the brands of third parties to identify their products and services.

Forward-Looking Statements

This release includes discussion of unreleased services or features. Any unreleased services or features referenced here are still in development and subject to change. Customers should make their purchase decisions based upon features that are currently available.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260902312863/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Lucid's new CEO launched a sweeping turnaround plan and called out years of failure in unusually blunt terms, yet the stock hit a 52-week low days later. Something in that reset spooked investors far more than it reassured them.

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Lucid Group (NASDAQ:LCID | LCID Price Prediction) stock trades at $4.81 midday, while the average analyst price target sits at $8.11. That gap implies upside of more than 70%.

Lucid designs and builds luxury electric vehicles from Newark, California. CEO Silvio Napoli filed an operational reset on August 4 promising $1.4 billion in cash flow improvements this year. Napoli took over on June 1 after previously running Schindler, and he framed the plan as one of four must-win priorities.

That gap matters because it sits on top of one of the worst balance sheets in the U.S. auto sector. Lucid stock closed Tuesday at $4.55, a fresh 52-week low, and today’s move is a bounce off that low rather than a full recovery.

Four Weeks That Erased 42% of the Equity From the August 4 close of $7.78 to Tuesday’s close of $4.55, Lucid stock fell 42%. That’s a company-specific collapse. Over the same window, the S&P 500 tracking SPDR S&P 500 ETF Trust (NYSE ARCA:SPY) barely moved.

What triggered it was the reset itself. Napoli told investors, “We have disappointed on several fronts, and for far too long,” and warned that production in Q3 2026 and Q4 2026 is expected to be below Q2 as Arizona moves from two shifts to one. Investors read the honesty as a warning rather than a fix.

Details released with the reset explained the reaction. Lucid reported stockholders’ equity of negative $1.06 billion, free cash flow of negative $1.48 billion for the quarter, and an accumulated deficit of $17.7 billion. Against a market capitalization of $1.8 billion, that accumulated deficit dwarfs the equity value the market currently assigns.

Why the $8.11 Target Hasn’t Caught Up The bull thesis rests on Napoli’s four must-win projects: the $1.4 billion cash flow improvement, the Robotaxi program with Uber and Nuro, the AMP-2 factory in Saudi Arabia, and the Midsize platform. Lucid reported total liquidity of $3 billion and said the runway extends “well into 2027.” That timeline is the load-bearing wall of every constructive case.

Citigroup cut its price target on Lucid stock to $11 after the reset. That figure predates the collapse to Tuesday’s 52-week low, and a target set before a 42% decline may lag events rather than identify value. Coverage skews cautious across the desks tracking the name: 1 Buy rating against 8 Holds, 1 Sell, and 2 Strong Sells. Recent revisions have moved down.

These catalysts are real but distant. Robotaxi is targeted for launch in late 2026 with production ramping in Q4, AMP-2 is expected to be ready for production in early 2027, and the Midsize program depends on that factory. Analyst targets aren’t guarantees, and none of these arrive in time to fix the balance sheet on their own.

How Rivian and Tesla Stack Up Lucid’s EV cohort didn’t sell off with it. This was a Lucid-specific move, and the peer prints confirm it.

Rivian (NASDAQ:RIVN) stock trades at $15.57, is down 21% year to date, and is up 12% over the past year. Rivian’s analyst posture leans more constructive than Lucid’s coverage, and Wall Street’s implied upside there is meaningful but smaller than Lucid’s gap.

Meanwhile, Tesla (NASDAQ:TSLA) stock sits at $352.70, down 22% year to date, and up 13% over the past month as robotaxi and AI narratives lift sentiment. Consensus-implied upside on Tesla sits well inside Lucid’s.

The largest analyst-implied upside across this group sits with Lucid, and that’s precisely the problem. When the biggest gap belongs to the smallest, most leveraged, most cash-negative name in the peer set, it’s a signal the target is stale.

Where the Setup Rewards Patience, and Where It Doesn’t Lucid stock is down 55% year to date and 73% over the past year, while the S&P 500 is up 12% year to date. The setup could reward patience here if the $1.4 billion in cash improvements lands on schedule, if the Uber Technologies (NYSE:UBER) and Nuro Robotaxi program reaches paid launch in late 2026 without further slippage, and if the November update shows liquidity holding without another equity raise.

The value-trap risk grows if any of those slip. The company’s negative stockholders’ equity means its liabilities exceed its assets on the balance sheet as reported, and for readers sizing risk near retirement, that condition makes further dilution the default rather than the tail risk. Every share issued to fund the runway pushes per-share math further from the standing target. An investor alert from a law firm has added to the overhang.

The gap between the current LCID stock price and the $8.11 price target reflects a future vision that hasn’t caught up to the balance sheet rather than an identified mispricing. Investors sizing their Lucid stock exposure should treat this as a speculative call option rather than a value trade, and should keep their positions small enough that a further leg down doesn’t dictate the outcome of the portfolio, the kind of sizing discipline we laid out in a free speculation guide.

Contact [email protected] for any questions or corrections.

BioNTech (BNTX +1.54%) has lagged the market this year. The company's shares have climbed just 6% as of writing, compared with the S&P 500's 12% gain. The biotech's performance looks even worse once we zoom out. Over the past five years, BioNTech has lost 70% of its value. Could BioNTech bounce back soon, or is the company more likely to continue sinking over the next few years? Let's find out whether it's time to buy the stock after years of underperformance.

Image source: Getty Images.

What's going on with BioNTech? BioNTech developed Comirnaty, a leading coronavirus vaccine, in combination with Pfizer (PFE +1.72%). This product was highly popular in the first few years of the pandemic. It generated almost $38 billion in sales at its peak and helped BioNTech post strong financial performances. However, the pandemic waned, demand for the vaccine declined, and some governments made it harder for people to get vaccinated. As a result, Comirnaty's sales have been unimpressive over the past few years.

That's why BioNTech has been lagging the market. In the second quarter, the company's revenue was 105.6 million euros ($122.7 million), down almost 60% year over year. The biotech's adjusted loss per share was €2.22 ($2.58), worse than the €1.45 ($1.68) loss per share recorded in the year-ago period. BioNTech will likely continue generating some revenue from its coronavirus vaccine franchise, but it is unlikely to be a meaningful, consistent growth driver in the medium term. So, the company needs to look elsewhere for growth.

A landmark clinical trial win BioNTech stock was in the red year-to-date until an important clinical trial win sent it soaring. Of note, it wasn't BioNTech's own clinical success. It was Moderna's (MRNA -2.21%) and Merck's (MRK +1.26%). The two corporations are collaborating to develop intismeran autogene, a personalized cancer vaccine. In a phase 3 study, intismeran autogene, in combination with Keytruda, significantly reduced the risk of recurrence and death in patients with melanoma compared to Keytruda alone. This clinical win showed the potential of Moderna's mRNA vaccine platform beyond infectious diseases and into the lucrative oncology market.

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BioNTech, another company that specializes in mRNA vaccines, suddenly became more attractive to many investors. BioNTech has several mRNA-based candidates in phase 2 or phase 3 studies. For instance, the company's BNT113 is being developed for head and neck cancer, while BNT116 is being investigated in patients with lung cancer. Over the next five years, BioNTech could record important clinical and regulatory wins, significantly improve its approved portfolio, and post much better financial results.

Perhaps BioNTech's most promising candidate is pumitamig, a cancer medicine it is developing in collaboration with Bristol Myers Squibb (BMY +0.90%). Pumitamig is a bispecific antibody, a newer class of drugs that could become increasingly important in oncology. BioNTech is hoping pumitamig can become a pipeline in a drug: The medicine is being developed to treat cancers of the lung, breast, liver, colon, and rectum, and more. Clinical trial wins across several of these niches, particularly in lung cancer -- the leading cause of cancer death worldwide -- would likely send BioNTech stock much higher. But does any of that make the stock a strong buy? "No-brainer" is likely too optimistic.

A lot could go wrong with BioNTech stock, including clinical and regulatory setbacks for some of its leading candidates. The vaccine maker also has a market cap of $25.4 billion as of writing. For a biotech company that generates little revenue and is consistently unprofitable, that can seem like a lot. But the market is betting on BioNTech's deep pipeline, so if the company fails to meet Wall Street's expectations, the stock will fall off a cliff. But even accounting for potential clinical setbacks, BioNTech looks somewhat attractive, especially given Moderna's clinical win that makes BioNTech's entire mRNA pipeline far more valuable. Given the breadth of BioNTech's pipeline, which gives it multiple shots at developing blockbuster products, the company could survive a few clinical trial failures. All good reasons why the stock looks attractive.

Key Takeaways Zebra Technologies saw Q2 sales rise 25.9% in Connected Frontline and 13.5% in Asset Visibility.ZBRA expects 2026 revenues to grow 14-16%, backed by solid product demand across its businesses.Zebra Technologies lifted 2026 free cash flow outlook above $1B and repurchased $568M of shares. Zebra Technologies Corporation (ZBRA - Free Report) stands to benefit from strength across its businesses, focus on operational excellence and acquired assets. The company remains focused on investing in growth opportunities and strengthening its long-term market position.

ZBRA, which has a market capitalization of $16.3 billion, currently carries a Zacks Rank #2 (Buy). Let’s delve into the factors that have been aiding the firm for a while now.

Business Strength: The company has been witnessing growth across the Connected Frontline segment. Higher sales of mobile computing solutions are driving the Connected Frontline segment. Revenues from the segment increased 25.9% (up 7.5% organically) year over year in the second quarter of 2026.

Solid demand for printing solutions, machine vision, data capture and RFID products is boosting the Asset Visibility & Automation segment’s performance. In the second quarter, the segment’s sales increased 13.5% (up 11.4% on an organic basis) on a year-over-year basis.

Driven by solid demand for its products, the company expects third-quarter 2026 net sales to increase 17-20% from the prior-year level. The company expects its 2026 revenues to grow 14-16% from the year-ago level.

Acquisition Benefits: The company intends to strengthen and expand its businesses through acquisitions. In September 2025, Zebra Technologies completed the acquisition of Elo Touch Solutions, Inc. (Elo). The inclusion of Elo’s expertise in consumer-facing workflow, augmented by its suite of kiosks, edge computing, payment and touchscreen solutions, expanded its reach across retail, healthcare, industrial and hospitality markets.

Price Performance of ZBRA Stock
Image Source: Zacks Investment Research

In the past six months, the company’s shares have surged 52.5% compared with the industry’s 56.8% growth.

Shareholder-Friendly Policies: Zebra Technologies has continued rewarding its shareholders. The company repurchased shares worth $568 million in the first six months of 2026. In February 2026, the company’s board of directors approved an additional share repurchase authorization of up to $1 billion.

Also, ZBRA generated $361 million of free cash flow in the first six months of 2026, up 25.3% year over year. The company now expects full-year 2026 free cash flow of more than $1 billion, up from its prior expectation of at least $900 million. This cash generation supports continued investment, debt flexibility and shareholder returns.

Earnings Estimates: The Zacks Consensus Estimate for ZBRA’s 2026 earnings is pegged at $20.31 per share, indicating an increase of 28.2% on a year-over-year basis. The consensus estimate for 2027 earnings is pegged at $21.75 per share, indicating an increase of 7.1% from the previous year.

Other Stocks to ConsiderSome other top-ranked stocks from the same space are discussed below.

NAPCO Security Technologies (NSSC - Free Report) presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NAPCO Security had an earnings surprise of 22% in the last reported quarter. The consensus estimate for NSSC’s fiscal 2027 (ending June 2027) earnings has increased 0.6% in the past 60 days.

Enersys (ENS - Free Report) currently carries a Zacks Rank of 2. Enersys’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 11.5%. In the past 60 days, the Zacks Consensus Estimate for Enersys’ fiscal 2027 (ending March 2027) earnings has increased 10.8%.

RBC Bearings Incorporated (RBC - Free Report) presently carries a Zacks Rank of 2. RBC Bearings has a trailing four-quarter average earnings surprise of 8.7%. The Zacks Consensus Estimate for RBC’s fiscal 2027 (ending March 2027) earnings has increased 4.9% over the past 60 days.

Brown-Forman Corporation (BF.B) Q1 2027 Earnings Call September 2, 2026 10:00 AM EDT

Company Participants

Susanne Perram - VP & Director of Investor Relations
Lawson Whiting - CEO, President & Director
James Peters - Executive VP & CFO

Conference Call Participants

Drew Levine - JPMorgan Chase & Co, Research Division
Peter Grom - UBS Investment Bank, Research Division
Nadine Sarwat - Bernstein Institutional Services LLC, Research Division
Nik Modi - RBC Capital Markets, Research Division
Lauren Lieberman - Barclays Bank PLC, Research Division
William Kirk - ROTH Capital Partners, LLC, Research Division
Seamus Cassidy - TD Cowen, Research Division
Eric Serotta - Morgan Stanley, Research Division
Chris Pitcher - Rothschild & Co Redburn, Research Division
Gregory Porter - Evercore ISI Institutional Equities, Research Division

Presentation

Operator

Good day, and thank you for standing by. Welcome to the Brown-Forman Corporation First Quarter Fiscal Year 2027 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Sue Perram, Vice President, Director, Investor Relations. Ma'am, please go ahead.

Susanne Perram
VP & Director of Investor Relations

Thank you, and good morning, everyone. I would like to thank each of you for joining us today for Brown-Forman's First Quarter Fiscal Year 2027 Earnings Call. Joining me today are Lawson Whiting, President and Chief Executive Officer; and Jim Peters, Executive Vice President and Chief Financial Officer.

This morning's conference call contains forward-looking statements based on our current expectations. Numerous risks and uncertainties may cause actual results to differ materially from those anticipated or projected in these statements. Many of the factors that will determine future results are beyond the company's ability to control or predict. You should not place undue reliance on any forward-looking statements, and except as required by law, the company undertakes no obligation to update any of these statements, whether

Key Takeaways FAF's purchase revenues rose just 2% as closed orders declined 3% in Q2 2026.Commercial revenue jumped 34% to $314 million, helping offset weakness in residential activity.Lower mortgage rates could boost housing activity, title orders and FAF's revenue and earnings. First American Financial Corporation (FAF - Free Report) continues to face pressure from the housing environment as elevated mortgage rates weigh on residential activity. The 30-year fixed mortgage rate averaged 6.66% as of Aug. 27, up from 6.56% a year earlier.

The impact is visible in FAF’s residential title business. In the second quarter of 2026, purchase revenues increased only 2%, as a 6% rise in average revenues per order was partly offset by a 3% decline in closed orders. Refinance revenues rose 18% following a temporary decline in mortgage rates early in the year, but volumes moderated as rates moved higher, according to management. Purchase open orders were flat year over year through the first three weeks of July, indicating subdued housing activity.

Still, commercial title activity is helping offset residential weakness. In the second quarter, commercial revenues increased 34% to $314 million. Higher revenues per transaction are also helping offset softer residential activity. Commercial open orders rose 9% year over year through the first three weeks of July, indicating continued momentum.

Meanwhile, strong investment performance provided another earnings tailwind. Adjusted net investment income increased 11.4% to a record $1.88 billion in the second quarter, supported by fixed-income and alternative asset portfolios.

A decline in mortgage rates remains a key potential catalyst. Lower borrowing costs could improve housing affordability, increase real estate transactions and boost title orders, supporting FAF’s revenues and earnings.

What About Its Peers?Stewart Information Services (STC - Free Report) is navigating weak residential activity. Management expects existing-home sales growth of only about 2% in 2026, down from its earlier 6-8% expectation, reflecting the impact of higher interest rates. However, commercial activity remains stronger, with domestic commercial revenues up 20% and closed orders rising 21% in the second quarter.

Fidelity National Financial (FNF - Free Report) is also facing pressure in residential housing. Higher mortgage rates and low transaction volumes continue to weigh on its Title business. However, adjusted pretax title earnings rose 33% year over year to $448 million, while the adjusted margin improved to 17.8%.

FAF’s Price PerformanceShares of FAF have gained 14.3% in the past year, outperforming the industry’s growth of 1.4%.

 

Image Source: Zacks Investment Research

FAF’s UndervaluationThe stock is undervalued compared with its industry. It is currently trading at a price-to-book value multiple of 1.33, lower than the industry average of 1.42. It carries a Value Score of A.

Image Source: Zacks Investment Research

Estimate Movement for FAFThe Zacks Consensus Estimate for First American’s 2026 revenues are pegged at $8.2 billion, indicating a year-over-year increase of 9.5%.

The consensus estimate for FAF’s 2026 earnings per share (EPS) indicates a year-over-year increase of 17.5%.

The consensus estimate for 2027 revenues and EPS indicates an increase of 7.2% and 4.2%, respectively, from the corresponding 2026 estimates.

The Zacks Consensus Estimate for 2026 and 2027 earnings has moved north 1.3% and 0.8%, respectively, over the past 30 days.

Image Source: Zacks Investment Research

FAF stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

While most software companies were retreating, Paycom made an aggressive and unconventional bet on itself, and the market delivered a verdict that caught even seasoned analysts off guard.

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Paycom Software (NYSE:PAYC | PAYC Price Prediction) spent the first half of 2026 doing what most software companies stopped doing: buying its own stock while everyone else was selling.

Buyback By The Numbers Paycom retired roughly 20% of its shares in eight months. The share count fell from 56.1 million at the end of 2025 to about 45.1 million today, and the company did most of that buying while the stock was near a 52-week low of $104.15. In the first six months of 2026, Paycom repurchased nearly 11 million shares for approximately $1.4 billion. That is a company betting on itself at the low.

What It Means Context matters here. Paycom spent $325.5 million on share repurchases in all of fiscal 2025. The 2026 pace is a different animal. In Q1 alone, the company bought back 8,375,443 shares for $1.060 billion and authorized a new $2.00 billion buyback. Q2 added another 2.6 million shares for $346 million, or about 6% of shares outstanding in a single quarter. Management called the repurchases opportunistic, citing a “valuation disconnect” in the market.

The funding is the part long-term holders need to see clearly. Paycom drew $900 million on its $2.1 billion revolving credit facility to support the year-to-date repurchases. Cash and equivalents ended Q2 at $198 million. This was a leveraged buyback funded partly with credit, and the balance sheet reflects that: stockholders’ equity fell to $571.5 million in Q2, down 68.28% year over year because of treasury stock accumulation.

Underneath the buyback, the operating business gave management cover. Q2 revenue was $531 million, up 10%, with recurring revenue of $505 million, up 11% year-over-year. Non-GAAP EPS came in at $2.78, ahead of the $2.381 consensus. Adjusted EBITDA margin expanded 320 basis points to 44.2%. Management raised full-year revenue guidance to $2.197 billion to $2.212 billion and adjusted EBITDA to $1.007 billion to $1.022 billion, implying a record 46% margin at the midpoint.

Market Reaction Paycom stock rose 98.81% between April 1, 2026 and August 31, 2026, from $120.26 to $239.10, with a 46.07% move in August alone. At the Q1 earnings 8-K filing on May 6, 2026, shares were $126.1438. By the Q2 filing on August 5, 2026, they closed at $175.00. The stock now trades above the $211.56 average analyst target, with 6 buy and 14 hold ratings and no sells. Zoom out and the picture is more sober: the stock is still down 50.07% over the last five years, from $478.83 on September 1, 2021.

Bull Case The buyback is a bet the market already validated. Oakmark Select portfolio manager Robert Bierig named Paycom on CNBC on September 1, 2026, saying: “Another example would be Paycom, which is a payroll software company that is buying back 20% of its shares this year. So we think they’re also very much a durable business that is going to benefit from some of the technology changes that are taking off right now.” Bierig also pushed back on the AI-loser framing: “I think people have wanted to put all of software into like an AI loser bucket. And we are big believers in the power of AI, but we think software companies can succeed at the same time.”

The operating case supports the capital allocation. Paycom cut R&D expense from $74.8M to $51.9M, largely because it moved AI workloads in-house. The company spent over $100 million last year preparing its own data centers, and management expects roughly $100 million in R&D savings this year plus $30 million or more from IWant response fees that would have gone to a third party. CEO Chad Richison said Paycom is “well positioned to exceed our initial 2026 plan on both a revenue and profitability basis.” Free cash flow is expected to exceed $650 million for the year. Retiring 20% of the float against that cash profile compounds every future dollar of earnings across a smaller share base.

Bottom Line Paycom bought its own stock at the bottom of a software panic, funded partly with debt, and the stock nearly doubled. For long-term holders, the forward catalyst is the raised guidance: $1.007 billion to $1.022 billion in adjusted EBITDA against a share count that is roughly 20% smaller than it was on New Year’s Day. The stock now sits above the average analyst target, and the analyst desk skews to hold. The buyback is the reason the story worked. Whether it keeps working depends on how the credit line gets paid back, and how quickly the automation savings show up in the 2027 numbers.

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Key Takeaways BROS maintains its 5-6% systemwide comp outlook for 2026, with Q3 growth expected at about 4-5%.BROS posted 5.8% systemwide comps in Q2, extending its positive comparable-sales streak to 13 quarters.BROS faces tougher 2H comparisons as pricing eases below 1% and transaction comparisons become challenging. Dutch Bros Inc. (BROS - Free Report) maintains its 2026 systemwide same-shop sales growth outlook of 5-6%, with performance expected to trend toward the midpoint of the range. The outlook incorporates an anticipated moderation to approximately 4-5% in the third quarter. Second-quarter systemwide comps increased 5.8%, including transaction growth of 1.7%, while company-operated comps advanced 8.3% on a 3.4% increase in transactions.

The second quarter of 2026 extended BROS’ streak to 13 consecutive quarters of positive comparable sales and eight straight quarters of transaction growth. Performance benefited from the continued food rollout, maturation of newer shop vintages, brand-marketing initiatives and customer segmentation within Dutch Rewards. Comparable sales remained positive across all dayparts, with particular strength during the morning.

The second-half outlook reflects a more demanding comparison profile. Approximately one percentage point of pricing rolled off in early July, reducing the expected effective pricing contribution to less than one percentage point during the period. Transaction comparisons are also expected to become progressively more difficult through the remainder of the year.

The anniversary of the food rollout creates an additional comparison. BROS began introducing the program in the third quarter of 2025 and expanded it more meaningfully during the fourth quarter. Consequently, second-half 2026 results will be measured against periods that already included food sales. The company expects this comparison to affect primarily net ticket.

Despite the anticipated moderation in third-quarter comparable-sales growth, BROS has not changed its full-year systemwide comparable-sales outlook. Continued maturation of newer shops and strength in the morning daypart are likely to support comparable-sales performance during the remainder of 2026.

How MCD and SBUX Compare on Comparable-Sales MomentumMcDonald’s Corporation (MCD - Free Report) is pursuing a more measured comparable-sales recovery. McDonald’s reported second-quarter global comp growth of 1.3%, with the United States increasing 0.8%. U.S. comps turned slightly negative in July as execution challenges carried into the third quarter. McDonald’s is focused on placing its U.S. baseline momentum in a stronger position by the end of 2026. International markets present a firmer outlook, with third-quarter comp growth in IOM and IDL expected to accelerate sequentially from second-quarter rates of 1.5% and 1.9%, respectively.

Starbucks Corporation (SBUX - Free Report) enters its fiscal fourth quarter with stronger comparable-sales momentum. The company generated fiscal third-quarter global and U.S. comp growth of 7.9%, while U.S. transactions increased 4.2%. Starbucks expects fiscal fourth-quarter U.S. comps to rise 6.5% or better, implying full-year U.S. growth of slightly more than 6% and global growth approaching 6%. Starbucks acknowledged the tougher year-over-year traffic comparisons and continued variability in the broader consumer environment.

BROS’ Price Performance, Valuation & EstimatesShares of Dutch Bros have declined 12.7% in the past six months compared with the industry’s fall of 10.9%.

BROS’ Stock’s Six-Month Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, Dutch Bros stock trades at a forward price-to-sales ratio of 3.25, below the industry’s average of 3.27.

BROS’ P/s Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for BROS’ 2026 earnings per share (EPS) implies a year-over-year uptick of 27.6%. The EPS estimates for 2026 have increased in the past 30 days.

EPS Trend of BROS Stock
Image Source: Zacks Investment Research

Dutch Bros stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Elastic (ESTC - Free Report) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

Analysts' growing optimism on the earnings prospects of this software developer is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

Consensus earnings estimates for the next quarter and full year have moved considerably higher for Elastic, as there has been strong agreement among the covering analysts in raising estimates.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate RevisionsThe company is expected to earn $0.81 per share for the current quarter, which represents a year-over-year change of +26.6%.

Over the last 30 days, the Zacks Consensus Estimate for Elastic has increased 91.13% because two estimates have moved higher while three have gone lower.

Current-Year Estimate RevisionsThe company is expected to earn $3.33 per share for the full year, which represents a change of +29.6% from the prior-year number.

The revisions trend for the current year also appears quite promising for Elastic, with eight estimates moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 155.4%.

Favorable Zacks RankThanks to promising estimate revisions, Elastic currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom LineInvestors have been betting on Elastic because of its solid estimate revisions, as evident from the stock's 30% gain over the past four weeks. As its earnings growth prospects might push the stock higher, you may consider adding it to your portfolio right away.

Key Takeaways Ares Management's AUM reached $671.3 billion, or 89.5% of its $750 billion 2028 target.Fee-paying AUM rose 17% year over year to $409.9 billion, strengthening its recurring fee base.BlueCove and GCP International acquisitions expanded Ares' capabilities and added new AUM growth avenues. Ares Management Corporation’s (ARES - Free Report) expanding asset base highlights the strength of its alternative investment platform. With assets under management (AUM) of $671.3 billion as of June 30, 2026, the company has reached approximately 89.5% of its $750-billion AUM target for 2028, unveiled at its 2024 Investor Day.

Strong historical AUM growth provides a solid foundation for reaching the target. The company’s diversified offerings across Credit, Real Assets, Secondaries and Private Equity provide multiple avenues for capital raising and deployment across market cycles. This broad platform has supported sustained asset growth, with AUM recording a six-year compound annual growth rate (CAGR) of 26.9% during 2019-2025. Growth has continued in the first half of 2026, with fee-paying AUM increasing 17% year over year to $409.9 billion as of June 30, 2026. The expanding fee-paying asset base strengthens recurring fee-generation potential and provides a foundation for future revenue growth.

Fundraising momentum remains a key driver of organic AUM growth. ARES expects another record fundraising year in 2026, supported by successor funds in direct lending and continued demand from institutional and wealth clients. Strong fundraising is expected to help the company raise new capital, expand its fee-paying asset base and support recurring management fee revenues.

Inorganic expansion provides another source of growth. The acquisition of BlueCove in February 2026 expanded ARES’ systematic fixed-income capabilities and added approximately $5.5 billion of AUM. Earlier, the March 2025 acquisition of GCP International strengthened its real assets and digital infrastructure capabilities. ARES continues to pursue partnerships, joint ventures and other strategic initiatives to expand its investment capabilities and distribution reach. These initiatives complement organic growth by adding new capabilities, broadening distribution and providing additional avenues for AUM expansion.

However, Ares Management’s growth trajectory remains subject to market and fundraising conditions. Volatility in private credit, shifts in investor sentiment and a cautious institutional environment could temporarily moderate fundraising, deployment activity and AUM growth. Yet, strong historical AUM growth, rising fee-paying assets, a robust fundraising pipeline and expanding institutional and wealth channels position ARES well to advance toward its 2028 AUM target. Organic growth initiatives and potential inorganic expansion further support its long-term AUM growth prospects.

How Is Ares Performing Against Its Peers on AUM Growth?Similar to Ares Management, its peers, Apollo Global Management (APO - Free Report) and KKR & Co. (KKR - Free Report) , are witnessing strong AUM growth, supported by fundraising, capital formation and strategic expansion.

Apollo Global Management’s AUM recorded a CAGR of 19.6% during 2022-2025, with the rising trend continuing in the first half of 2026. Its AUM reached $1.05 trillion as of June 30, 2026, up 25% year over year, driven by strong capital formation and Retirement Services inflows. Fee-earning AUM also increased 34% year over year, supported by fundraising across credit and equity strategies and continued growth in Athene. By 2029, Apollo Global Management expects total AUM to reach almost $1.5 trillion by scaling its private equity business.

KKR is also witnessing strong AUM growth. Its AUM recorded a five-year CAGR of 24.2% during 2020-2025, with the rising trend continuing in the first half of 2026. Strong fundraising has been a key growth driver, with KKR raising $305 billion since the start of 2024, surpassing its three-year $300 billion target ahead of schedule. Strategic acquisitions, including Arctos Partners and HealthCare Royalty Partners, have further expanded its investment platform and AUM. KKR aims to reach at least $1 trillion in AUM by 2030.

ARES’s Price Performance & Zacks RankThe company’s shares have gained 23.5% in the past six months compared with the industry’s 13.3% rise.

Image Source: Zacks Investment Research

Currently, ARES carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A month has gone by since the last earnings report for Allison Transmission (ALSN - Free Report) . Shares have added about 0.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Allison Transmission due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

ALSN Q2 Earnings Beat Estimates Allison reported adjusted earnings of $2.73 per share for the second quarter of 2026, up 19.2% year over year and above the Zacks Consensus Estimate of $2.60 by 5%. Quarterly revenues of $1,566 million jumped 92% and beat the consensus estimate of $1,508 million by 3.8%.

The top-line surge reflected the addition of Allison Off-Highway and record quarterly sales in the legacy Transmission unit. Defense revenue climbed 57% to $99 million, underscoring strength in a key growth market.

Acquisition Costs Pressure GAAP ProfitabilityGross profit increased to $515 million from $403 million, primarily reflecting the addition of Allison Off-Highway. Gross margin was 32.9%. Selling, general and administrative expenses rose $64 million to $168 million, while engineering, research and development costs increased $13 million to $56 million.

GAAP net income declined $14 million to $181 million, while diluted earnings fell 6% to $2.15 per share. Higher operating costs tied to the acquisition, including increased depreciation and amortization, along with higher net interest expense and unrealized mark-to-market adjustments on marketable securities, weighed on results.

New Quarterly Sales RecordThe Allison Transmission business generated net sales of $860 million, up 6% year over year. Segment operating profit was $281 million, or 32.7% of sales, while adjusted EBITDA totaled $318 million with a 37.0% margin.

North America on-highway sales rose 3% to $430 million, while outside North America on-highway sales fell 7% to $132 million. Global off-highway sales increased 38% to $22 million, and service parts, support equipment and other sales advanced 1% to $177 million. Recent defense wins included major programs with BAE Hägglunds, Arquus and General Dynamics European Land Systems.

Off-Highway Adds $706 Million of SalesAllison Off-Highway recorded net sales of $706 million. Gross profit was $118 million, representing a 16.7% margin. Segment operating profit reached $47 million, or 6.7% of sales, while adjusted EBITDA was $104 million with a 14.7% margin.

Construction and material handling contributed $249 million, followed by agriculture and service parts, specialty and other at $152 million each. Industrial sales were $99 million and mining generated $54 million. Management cited strength in European construction and mining, while agriculture had yet to turn positive overall.

Synergy Plan Enters Execution PhaseThe company continues to target $120 million of annual run-rate synergies from the Off-Highway acquisition. Procurement and logistics account for 60% of the expected savings, while operations and footprint optimization and SG&A and people initiatives each represent 20%.

Allison expects to capture 40% of the target by the end of 2027, 80% by the end of 2028 and the full amount by the end of 2029. Management said 90% of the identified synergies are already in the execution stage, with resource planning completed and capital appropriated.

Cash Flow Strengthens DeleveragingNet cash provided by operating activities rose 70% year over year to $312 million. Adjusted free cash flow increased 84% to a quarterly record of $281 million. During the quarter, ALSN repaid the remaining $150 million under its revolving credit facility, repurchased $46 million of stock and paid a dividend of $0.29 per share.

The company ended June with $399 million in cash and cash equivalents and $995 million of available revolver capacity. Total debt was $4,114 million and net debt stood at $3,715 million, with management maintaining a near-term net leverage target of about 2.0 times.

Allison Raises 2026 Sales and Cash OutlookFor 2026, Allison now expects net sales of $5,800-$6,000 million, up from the previous estimate of $5,575-$5,925 million. Adjusted EBITDA is now projected at $1,465-$1,575 million versus the prior estimated range of $1,365-$1,515 million. Net income guidance was narrowed to $600-$700 million from the prior outlook of $600-$750 million.

Net cash from operating activities is now expected at $1,025-$1,125 million, while capital expenditures are forecast at $260-$280 million. Adjusted free cash flow guidance increased to $745-$865 million from the previous estimate of $655-$805 million.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.

VGM ScoresAt this time, Allison Transmission has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Allison Transmission has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Key Takeaways OUTFRONT Media benefits from a broad U.S. footprint spanning about 120 markets and diverse advertisers.Digital revenues rose 23.3% to $193.7 million, boosted by higher-value digital billboard displays.Transit revenues climbed 32.3% to $140.6 million, led by a 48% increase at the New York MTA. OUTFRONT Media’s (OUT - Free Report) diversified portfolio and digital billboard conversions augur well for long-term growth. Additionally, the company's emphasis on transit momentum and permit-based barriers adds further momentum.

Analysts seem bullish on this Zacks Rank #2 (Buy) stock. The estimate revision trend for 2026 adjusted funds from operations (AFFO) per share indicates a favorable outlook, with estimates moving north over the past week.

Over the past six months, shares of OUTFRONT have increased 2.8%, outperforming the industry’s 1.8% growth. Given its solid fundamentals and positive estimate revisions, the stock is likely to maintain its momentum in the quarters ahead.

Image Source: Zacks Investment Research

What Makes OUTFRONT a Solid Choice?Diversified U.S. Footprint: OUTFRONT Media’s advertising sites are geographically diversified, with displays in approximately 120 markets across the United States, including the 25 largest markets. This scale enables clients to reach national audiences while tailoring campaigns to specific regions.

The company also serves diverse advertiser categories across its billboard and transit assets. In the second quarter of 2026, commercial revenues increased 14.7% year over year, while enterprise revenues rose 12.2%. Its broad geographic footprint and mix of advertiser categories continue to reduce dependence on any single market or customer group.

Digital Conversion Benefits: OUTFRONT Media has been investing in digital displays for years, and the conversion strategy continues to expand revenue opportunities. As of June 30, 2026, total digital displays reached 31,632, including 1,983 digital billboard displays and 29,649 digital transit displays.

Digital billboard displays generate approximately four to five times more revenues per display, on average, than comparable static billboards. In the second quarter of 2026, total digital revenues increased 23.3% year over year to $193.7 million, while automated sales represented 19.7% of digital revenues.

OOH and Transit Momentum: OUTFRONT Media’s transit business continues to benefit from higher yield, digital adoption and premium urban inventory. In the second quarter of 2026, transit revenues increased 32.3% year over year to $140.6 million, led by a 48% rise at the New York MTA. Digital transit revenues rose 35.5% to $67.6 million, while static and other transit revenues increased 29.4%.

In August 2026, the company announced an exclusive, multi-year partnership with the New York Jets, supporting additional sports-related advertising opportunities across its OOH network. Management expects third-quarter 2026 transit revenue growth of about 20%, alongside mid-single-digit billboard growth. This outlook points to continued demand across the company’s broader OOH portfolio.

Permit-Based Barriers: OUTFRONT Media operates in an industry characterized by high barriers to entry, as outdoor advertising locations are constrained by permitting requirements. The company typically owns permits that allow OOH advertising at each location, making these permits among its most valuable assets.

Since permitting limits the creation of new inventory and restricts intrusion from local and national competitors, the industry structure can support advertising rates. Physical media is also scarce by law and geography compared with more expandable digital inventory. This scarcity gives OUTFRONT Media a durable asset base and supports its long-term revenue opportunity.

Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are Digital Realty Trust (DLR - Free Report) and American Tower (AMT - Free Report) , carrying a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for DLR’s 2026 FFO per share is pinned at $8.40. This indicates year-over-year growth of 13.67%.

The Zacks Consensus Estimate for AMT’s 2026 FFO per share is pegged at $11.07. This calls for a year-over-year increase of 2.88%.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

Aster (@Aster_DEX), the decentralized perpetual exchange built on BNB Smart Chain, is tightening access to its authenticated API for new users. From September 7, anyone seeking to use key V3 endpoints will first need to make a deposit from their linked main wallet before gaining access.

What Is Changing and Who Is Affected The new requirement applies specifically to authenticated Spot V3 and Futures V3 endpoints. This covers the endpoints developers rely on for account management, order activity, and trading operations.

The change is limited to new users. Those already active on the platform are not affected, and neither are public market data endpoints.

Context: Aster's Ongoing API Transition The deposit requirement is the latest step in a broader shift toward Aster's V3 API model.

Earlier this year, Aster phased out V1 API key creation entirely.

Aster has urged new users to complete the required deposit before attempting any restricted API requests to avoid disruptions to their integrations.

Sources:
Aster Official API Documentation (GitHub)
Aster Developer Docs
Aster API Management Page

A volunteer group called the Bitcoin Red Team just ran one of the most ambitious automated security audits the crypto ecosystem has ever seen. Their weapon of choice: Kimi K3, an open-weight AI model built by China’s Moonshot AI. Over roughly 108 hours, the model catalogued 7,958 potential security findings across 501 Bitcoin-related open-source projects, with 1,280 of those rated high or critical severity.

Kimi K3 outperformed every other open-weight model tested, including Zhipu’s GLM-5.2, in standardized vulnerability detection benchmarks.

What the audit actually found Of the 7,958 potential issues flagged by Kimi K3, only 24.7% could be dynamically reproduced. At the time of reporting, 29.4% of the findings had been communicated upstream to the affected projects.

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The most consequential discovery was a critical two-factor authentication bypass in BTCPay Server version 2.4.2. The vulnerability had already been exploited to extract Lightning wallet credentials before it was patched, making it a live, in-the-wild security incident rather than a theoretical concern.

How Kimi K3 stacks up The UK’s AI Safety Institute and its counterpart CAISI ran a preliminary assessment of Kimi K3 in July 2026, scoring it at 32% on ExploitBench. That’s a benchmark designed to measure an AI model’s ability to identify and reason about exploitable software vulnerabilities. GLM-5.2 scored 24% on the same test.

Among open-weight models, those whose weights are publicly available for anyone to download and run, Kimi K3 sits at the top. The model was released around July 16–27, 2026, and the Red Team intensified its auditing effort in the weeks that followed.

The gap between open-weight and closed-source models remains significant. Leading US models from OpenAI and Anthropic averaged around 76% on ExploitBench. That’s more than double Kimi K3’s score.

The Coldcard incident that started it all The Red Team’s effort was catalyzed by a security incident in July 2026 involving the Coldcard Mk3. A flaw in the Mk3 firmware led to the theft of approximately 594 BTC, estimated at $38 million at the time. The incident sparked widespread speculation that the attackers had used AI to identify the firmware vulnerability, though that claim hasn’t been definitively proven.

What this means for Bitcoin security The economics of code auditing are about to shift. A professional security audit of a single Bitcoin project can cost tens of thousands of dollars and take weeks. Kimi K3 scanned 501 projects in 108 hours.

US AI companies, which build the most capable models, have generally restricted their tools from being used for vulnerability research, citing safety concerns. Meanwhile, an open-weight Chinese model is being freely deployed to find and report bugs in critical financial infrastructure. The gap between open-weight and closed-source model performance on ExploitBench—32% versus 76%—suggests the most capable vulnerability detection still lives behind API paywalls.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.