Pomerantz LLP vyšetřuje nároky investorů společnosti Shutterstock kvůli možnému porušení zákonů o cenných papírech. Akcie po oznámení pozastavení čtvrtletní dividendy klesly o 1,62 USD na akcii, tedy o 21,95 %, na 5,76 USD.
NEW YORK, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Shutterstock, Inc. (“Shutterstock” or the “Company”) (NYSE: SSTK). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Shutterstock and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On July 22, 2026, Shutterstock issued a press release announcing that its Board of Directors had “resolved to suspend the Company’s future quarterly cash dividend.” The press release stated that “[t]he Board’s determination reflects its ongoing review of the Company's capital-allocation priorities and its focus on deploying capital to support long-term value creation for shareholders, including reducing debt, minimizing related interest expense and strengthening financial flexibility.”
On this news, Shutterstock’s stock price fell $1.62 per share, or 21.95%, to close at $5.76 per share on July 23, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Shutterstock ve 2. čtvrtletí vykázal tržby 221,8 mil. USD, meziročně o 17 % méně, a čistou ztrátu 155,9 mil. USD kvůli odpisu goodwillu ve výši 173,7 mil. USD. Zároveň stáhl výhled na zbytek roku 2026.
, /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK) (the "Company"), a family of brands delivering scalable creative and GenAI solutions to help customers fuel great work, today announced financial results for the second quarter ended June 30, 2026.
Commenting on the Company's performance, Rik Powell, the Company's Interim Chief Executive Officer and Chief Financial Officer, said, "Following the termination of our proposed merger, we have moved quickly to strengthen our balance sheet, reduce our cost structure, and sharpen our focus on the areas with the greatest potential and are approaching every aspect of the business with discipline and urgency. We have taken significant cost actions over the past 18 months that equate to over $70 million of annualized run-rate operating expense reductions and are targeting an additional $60 million in annualized run-rate operating expense reductions by the end of the year. These actions will give us greater optionality in our capital allocation strategy."
He continued, "While we recognize the challenges in front of us, Shutterstock remains a company with meaningful strategic assets, including a globally recognized brand, one of the world's largest and most diverse commercially licensed content libraries, a differentiated Data and AI Services business, our unique GIPHY platform, and strong cash generation. Together, these strengths provide a solid foundation as we refine our long-term strategy and position the business for its next phase of growth which we look forward to discussing in the coming weeks."
EARNINGS TELECONFERENCE INFORMATION
In light of the pending strategic update, the Company will no longer be hosting the conference call originally scheduled for August 6, 2026 or issuing guidance for the remainder of 2026.
Second Quarter 2026 highlights as compared to Second Quarter 2025:
Financial Highlights
Revenues were $221.8 million compared to $267.0 million. Net loss was $155.9 million compared to net income of $29.4 million. Net loss includes a $163.4 million non-cash, after-tax goodwill impairment charge. Net loss per diluted common share was $4.25 compared to net income per diluted common share of $0.82. Adjusted net income was $30.0 million compared to $42.9 million. Adjusted net income per diluted common share was $0.82 compared to $1.19. Adjusted EBITDA was $65.1 million compared to $82.2 million. SECOND QUARTER RESULTS
Revenue
Second quarter revenue of $221.8 million decreased by $45.2 million or 17% as compared to the second quarter of 2025.
Revenue from our Content product offering decreased by $34.1 million, or 17%, as compared to the second quarter of 2025, to $165.7 million. The reduction in our Content revenue was driven primarily by weakness in new customer acquisition. Content revenue represented 75% of our total revenue in the second quarter of 2026.
Revenue generated from our Data, Distribution, and Services product offering decreased by $11.1 million, or 16%, as compared to the second quarter of 2025, to $56.1 million, and represented 25% of second quarter revenue in 2026. Revenue recognition in our data offering may vary from quarter-to-quarter based on the delivery timing of metadata licenses.
Net income and net income per diluted common share
Net income decreased by $185.4 million to a net loss of $155.9 million in the second quarter of 2026, compared to net income of $29.4 million for the second quarter of 2025. Net loss per diluted common share was $4.25, as compared to net income per diluted common share of $0.82 for the same period in 2025. In the second quarter of 2026, the Company recorded a non-cash goodwill impairment charge of $173.7 million resulting from the decline in the Company's fair value after the announcement of the terminated merger agreement. Additionally, the Company had further declines in revenue, with operating costs not declining at a similar rate, as well as $3.0 million of unrealized losses related to our investment in Meitu, Inc, $3.7 million of Merger related costs, $5.0 million of legal contingency expenses and $3.0 million of workforce optimizations expenses.
Adjusted net income and adjusted net income per diluted common share
Adjusted net income of $30.0 million in the second quarter of 2026 decreased by $12.9 million, compared to adjusted net income of $42.9 million for the second quarter of 2025, primarily due to the decline in revenue.
Adjusted net income per diluted common share was $0.82, compared to $1.19 for the second quarter of 2025.
Adjusted EBITDA
Adjusted EBITDA of $65.1 million for the second quarter of 2026 decreased by $17.1 million, or 21%, as compared to the second quarter of 2025, primarily due to the decline in revenue.
Net loss margin of 70.3% for the second quarter of 2026 decreased by 81.3%, as compared to net income margin of 11.0% in the second quarter of 2025. The adjusted EBITDA margin of 29.3% for the second quarter of 2026 decreased by 1.5%, as compared to 30.8% in the second quarter of 2025.
SECOND QUARTER LIQUIDITY
Our cash and cash equivalents decreased by $29.3 million to $133.2 million at June 30, 2026, as compared with $162.5 million as of March 31, 2026. This was driven by $0.6 million of net cash from operating activities, including a $35.0 million payment for the settlement of the FTC's civil investigative demand on the Company's subscription disclosure and enrollment and cancellation practices. In addition, the Company had $18.5 million of net cash used in financing activities and $10.1 million of net cash used in investing activities.
Net cash from operating activities was driven by the $35.0 million payment to the FTC. This was offset by cash generation from our business operations and changes in the timing of cash collections from our customers and payments pertaining to operating expenses. In addition, cash flows for the three months ended June 30, 2026 were unfavorably impacted by $3.0 million of expenses related to the Getty Images proposed merger.
Cash used in investing activities for the three months ended June 30, 2026 consisted of $10.1 million related to capital expenditures, $0.1 million of content acquisition, partially offset by $0.1 million related to the receipt of the Giphy Retention Compensation, as reimbursed by the Giphy seller.
Cash used in financing activities for the three months ended June 30, 2026 consisted of $13.2 million related to the payment of the quarterly cash dividend, $4.5 million paid in settlement of tax withholding obligations related to employee stock-based compensation awards, and $0.8 million used for the repayment of our credit facility.
Adjusted free cash flow was $28.5 million for the second quarter of 2026, an increase of $11.0 million from the second quarter of 2025.
KEY OPERATING METRICS
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
20255
Subscribers (end of period)(1)
951,000
1,073,000
951,000
1,073,000
Subscriber revenue (in millions)(2)
$ 99.8
$ 108.0
$ 203.6
$ 217.9
Average revenue per customer (last twelve months)(3)
Subscribers, Subscriber Revenue and Average Revenue Per Customer from acquisitions are included in these metrics beginning twelve months after the closing of the respective business combination. Accordingly, the metrics include Subscribers, Subscriber revenue, and Average revenue per customer from Backgrid beginning February 2025. 2025 metrics include the counts and revenues from Envato, which was acquired in July 2024.
(1) Subscribers is defined as those customers who purchase one or more of our monthly recurring products for a continuous period of at least three months, measured as of the end of the reporting period.
(2) Subscriber revenue is defined as the revenue generated from subscribers during the period.
(3) Average revenue per customer is calculated by dividing total revenue for the last twelve-month period by customers. Customers is defined as total active, paying customers that contributed to total revenue over the last twelve-month period.
(4) Paid downloads is the number of downloads that our customers make in a given period of our content. Paid downloads exclude content related to our Studios business, downloads of content that are offered to customers for no charge, including our free trials and metadata delivered through our data deal offering.
NON-GAAP FINANCIAL MEASURES
To supplement Shutterstock's consolidated financial statements presented in accordance with the accounting principles generally accepted in the United States, or GAAP, Shutterstock's management considers certain financial measures that are not prepared in accordance with GAAP, collectively referred to as non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), and adjusted free cash flow.
Shutterstock defines adjusted EBITDA as net income adjusted for depreciation and amortization, non-cash equity-based compensation, Giphy Retention Compensation Expense - non-recurring, foreign currency transaction gains and losses, severance costs associated with strategic workforce optimizations, goodwill impairment, impairment loss on long-term investment, impairment of lease assets, unrealized losses / gains on investments, legal contingencies, interest income and expense, income taxes and Merger related costs; adjusted EBITDA margin as the ratio of adjusted EBITDA to revenue; adjusted net income as net income adjusted for the impact of non-cash equity-based compensation, amortization of acquisition-related intangible assets, Giphy Retention Compensation Expense - non-recurring, severance costs associated with strategic workforce optimizations (reported in Other), unrealized losses / gains on investments (reported in Other), goodwill impairment, impairment loss on long-term investment, legal contingencies, Merger related costs and the estimated tax impact of such adjustments; adjusted net income per diluted common share as adjusted net income divided by weighted average diluted shares; revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) as the increase in current period revenues over prior period revenues, utilizing fixed exchange rates for translating foreign currency revenues for all periods presented in the comparison; and adjusted free cash flow as net cash provided by operating activities, adjusted for capital expenditures, content acquisition, cash received related to Giphy Retention Compensation in connection with the acquisition of Giphy, cash paid for the settlement of the FTC investigation, and cash paid for costs related to the Getty Images merger.
The expense associated with the Giphy Retention Compensation related to (i) the one-time employment inducement bonuses and (ii) the vesting of the cash value of unvested Meta equity awards held by the employees prior to closing, which are reflected in operating expenses (together, the "Giphy Retention Compensation Expense - non-recurring"), are required payments in accordance with the terms of the acquisition. Meta's sale of Giphy was directed by the United Kingdom Competition and Markets Authority (the "CMA") and accordingly, the terms of the acquisition were subject to CMA preapproval. Management considers the operating expense associated with these required payments to be unusual and non-recurring in nature. The Giphy Retention Compensation Expense - non-recurring is not considered an ongoing expense necessary to operate the Company's business. Therefore, such expenses have been included in the below adjustments for calculating adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share.
These figures have not been calculated in accordance with GAAP and should be considered only in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. Shutterstock cautions investors that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.
Shutterstock's management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) and adjusted free cash flow are useful to investors because these measures enable investors to analyze Shutterstock's operating results on the same basis as that used by management. Additionally, management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share provide useful information to investors about the performance of the Company's overall business because such measures eliminate the effects of unusual or other infrequent charges that are not directly attributable to Shutterstock's underlying operating performance; and revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) provides useful information to investors by eliminating the effect of foreign currency fluctuations that are not directly attributable to Shutterstock's operating performance. Management also believes that providing these non-GAAP financial measures enhances the comparability for investors in assessing Shutterstock's financial reporting. Shutterstock's management believes that adjusted free cash flow is useful for investors because it provides them with an important perspective on the cash available for strategic measures, after making necessary capital investments in internal-use software and website development costs to support the Company's ongoing business operations, and provides them with the same measures that management uses as the basis for making resource allocation decisions.
Shutterstock's management also uses the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), and adjusted free cash flow, in conjunction with GAAP financial measures, as an integral part of managing the business and to, among other things: (i) monitor and evaluate the performance of Shutterstock's business operations, financial performance and overall liquidity; (ii) facilitate management's internal comparisons of the historical operating performance of its business operations; (iii) facilitate management's external comparisons of the results of its overall business to the historical operating performance of other companies that may have different capital structures and debt levels; (iv) review and assess the operating performance of Shutterstock's management team and, together with other operational objectives, as a measure in evaluating employee compensation; (v) analyze and evaluate financial and strategic planning decisions regarding future operating investments; and (vi) plan for and prepare future annual operating budgets and determine appropriate levels of operating investments.
Reconciliations of the differences between each of our non-GAAP financial measures (adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), adjusted free cash flow), and each measure's most directly comparable financial measure calculated and presented in accordance with GAAP, are presented under the headings "Reconciliation of Non-GAAP Financial Information to GAAP" and "Supplemental Financial Data" immediately following the Consolidated Balance Sheets.
ABOUT SHUTTERSTOCK
Shutterstock is in the business of turning ideas into impact. Powered by a global network of millions of creators and our cutting-edge technology, we provide businesses, creatives, and brand leaders with the essential, universal ingredients to make their work more effective. Shutterstock offers access to one of the world's largest and most diverse collections of high-quality licensable assets, specialized training datasets, evaluation tools, and end-to-end strategic partnerships for the full model training lifecycle, as well as advertising and distribution solutions, exclusive editorial content, and full-service studio production—delivering unparalleled resources to fuel great work.
Discover our impact at www.shutterstock.com and connect with us on LinkedIn, Instagram, X, Facebook and YouTube.
FORWARD-LOOKING STATEMENTS
The statements in this press release, and any related oral statements, include 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. All statements, other than historical facts, are forward-looking statements. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, financings or otherwise, based on current beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. Forward-looking statements speak only as of the date they are made or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as there can be no assurance that the events or circumstances reflected in these statements will be achieved or will occur or the timing thereof. Forward-looking statements can often, but not always, be identified by the use of forward-looking terminology including "believes," "expects," "may," "will," "should," "could," "might," "seeks," "intends," "plans," "pro forma," "estimates," "anticipates," "designed," or the negative of these words and phrases, other variations of these words and phrases or comparable terminology, but not all forward-looking statements include such identifying words. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary. The forward-looking statements in this press release relate to, among other things, statements regarding industry prospects, future business, future results of operations or financial condition, future dividends, future stock performance, our ability to consummate acquisitions and integrate the businesses we have acquired or may acquire into our existing operations, new or planned features, products or services, management strategies, our ability to offer premier Data Licensing and AI Services, and our competitive position. Important factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include, among others, the risks discussed under the caption "Risk Factors" in Shutterstock's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward looking statements. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward looking statements. Shutterstock does not assume, and hereby disclaims, any obligation to update forward-looking statements, except as may be required by law.
Shutterstock, Inc.
Consolidated Statements of Operations
(In thousands, except for per share data)
(unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenue
$ 221,801
$ 266,990
$ 420,971
$ 509,610
Operating expenses:
Cost of revenue
93,787
105,994
188,575
206,882
Sales and marketing
48,008
57,077
96,354
110,436
Product development
17,574
20,754
36,979
40,619
General and administrative
43,930
48,434
111,515
106,741
Goodwill impairment
173,738
—
173,738
—
Total operating expenses
377,037
232,259
607,161
464,678
(Loss) / income from operations
(155,236)
34,731
(186,190)
44,932
Interest expense
(3,833)
(4,224)
(7,593)
(8,522)
Other (expense) / income, net
(1,862)
12,624
(16,523)
27,139
(Loss) / income before income taxes
(160,931)
43,131
(210,306)
63,549
(Benefit) / provision for income taxes
(4,992)
13,691
(6,798)
15,421
Net (loss) / income
$ (155,939)
$ 29,440
$ (203,508)
$ 48,128
(Losses) / earnings per share:
Basic
$ (4.25)
$ 0.84
$ (5.63)
$ 1.37
Diluted
$ (4.25)
$ 0.82
$ (5.63)
$ 1.35
Weighted average common shares outstanding:
Basic
36,703
35,257
36,126
35,075
Diluted
36,703
35,958
36,126
35,642
Shutterstock, Inc.
Consolidated Balance Sheets
(In thousands, except par value amount)
(unaudited)
June 30, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents
$ 133,208
$ 178,244
Accounts receivable, net of allowance of $3,750 and $3,431
102,264
112,626
Prepaid expenses and other current assets
44,025
47,769
Total current assets
279,497
338,639
Property and equipment, net
61,237
62,553
Right-of-use assets
8,238
9,770
Intangible assets, net
192,073
215,673
Goodwill
400,025
574,614
Deferred tax assets, net
77,221
61,289
Other assets
73,986
93,398
Total assets
$ 1,092,277
$ 1,355,936
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 12,982
$ 13,898
Accrued expenses
104,227
129,952
Contributor royalties payable
98,292
94,163
Deferred revenue
198,444
212,984
Debt
158,112
158,110
Other current liabilities
14,719
19,295
Total current liabilities
586,776
628,402
Deferred tax liability, net
1,323
1,134
Long-term debt
115,157
116,639
Lease liabilities
13,518
17,247
Other non-current liabilities
11,843
11,476
Total liabilities
728,617
774,898
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value; 200,000 shares authorized; 42,328 and 41,049 shares
issued and 36,807 and 35,528 shares outstanding as of June 30, 2026 and December 31,
2025, respectively
422
410
Treasury stock, at cost; 5,521 shares as of June 30, 2026 and December 31, 2025
(269,804)
(269,804)
Additional paid-in capital
536,627
520,018
Accumulated other comprehensive loss
(9,249)
(4,754)
Retained earnings
105,664
335,168
Total stockholders' equity
363,660
581,038
Total liabilities and stockholders' equity
$ 1,092,277
$ 1,355,936
Shutterstock, Inc.
Consolidated Statements of Cash Flows
(In thousands, except par value amount)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) / income
$ (155,939)
$ 29,440
$ (203,508)
$ 48,128
Adjustments to reconcile net (loss) / income to net cash (used in)
/ provided by operating activities:
Depreciation and amortization
22,416
22,611
45,120
45,282
Deferred taxes
(8,399)
974
(15,741)
(6,798)
Goodwill impairment
173,738
—
173,738
—
Non-cash equity-based compensation
12,536
15,625
25,908
33,509
Loss on impairment of long-term investment
—
5,000
—
5,000
Bad debt expense
214
367
319
960
Unrealized loss / (gain) on investments, net
2,963
(18,028)
18,268
(31,288)
Changes in operating assets and liabilities:
Accounts receivable
735
(39,056)
9,701
(55,674)
Prepaid expenses and other current and non-current assets
(3,759)
4,775
1,592
22,757
Accounts payable and other current and non-current liabilities
(37,972)
2,677
(29,386)
(14,587)
Contributor royalties payable
3,459
6,401
5,084
9,780
Deferred revenue
(9,371)
(3,950)
(13,104)
(4,986)
Net cash provided by operating activities
$ 621
$ 26,836
$ 17,991
$ 52,083
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures
(10,115)
(11,312)
(21,710)
(22,120)
Cash received related to Giphy Retention Compensation
109
369
477
861
Acquisition of content
(110)
(4,081)
(301)
(4,978)
Security deposit (payment) / release
(23)
59
249
38
Net cash used in investing activities
$ (10,139)
$ (14,965)
$ (21,285)
$ (26,199)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash paid to settle employee taxes related to RSU vesting
(4,461)
(1,473)
(10,848)
(5,012)
Payment of cash dividends
(13,214)
(11,623)
(25,996)
(23,124)
Repayment of credit facility
(782)
(782)
(1,563)
(1,563)
Net cash used in financing activities
$ (18,457)
$ (13,878)
$ (38,407)
$ (29,699)
Effect of foreign exchange rate changes on cash
(1,333)
6,186
(3,335)
8,974
Net (decrease) / increase in cash and cash equivalents
(29,308)
4,179
(45,036)
5,159
Cash and cash equivalents, beginning of period
162,518
112,231
178,244
111,251
Cash and cash equivalents, end of period
$ 133,208
$ 116,410
$ 133,208
$ 116,410
Supplemental Disclosure of Cash Information:
Cash paid for income taxes
$ 6,934
$ 15,293
$ 7,678
$ 14,689
Cash paid for interest
3,518
4,106
7,288
8,465
Shutterstock, Inc.
Reconciliation of Non-GAAP Financial Information to GAAP
(In thousands, except per share information)
(unaudited)
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by distribution channel) on a constant currency basis (expressed as a percentage), and adjusted free cash flow are not financial measures prepared in accordance with United States generally accepted accounting principles (GAAP). Such non-GAAP financial measures should not be construed as alternatives to any other measures of performance determined in accordance with GAAP. Investors are cautioned that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Net (loss) / income
$ (155,939)
$ 29,440
$ (203,508)
$ 48,128
Add / (less) Non-GAAP adjustments:
Non-cash equity-based compensation
12,536
15,625
25,908
33,509
Tax effect of non-cash equity-based compensation (1)
(2,946)
(3,672)
(6,088)
(7,875)
Acquisition-related amortization expense (2)
9,564
9,581
19,163
19,278
Tax effect of acquisition-related amortization expense (1)
(2,248)
(2,252)
(4,504)
(4,531)
Unrealized loss / (gain) on investment
2,963
(13,029)
18,268
(26,289)
Goodwill impairment
173,738
—
173,738
—
Tax effect of goodwill impairment(1)
(10,371)
—
(10,371)
—
Workforce optimization - severance
2,963
121
9,043
301
Tax effect of workforce optimization - severance(1)
Statutory tax rates are used to calculate the tax effect of the adjustments.
(2)
Of these amounts, $8.9 million and $8.9 million are included in cost of revenue for the three months ended June 30, 2026 and 2025, respectively. The remainder of acquisition-related amortization expense is included in general and administrative expense in the Statement of Operations.
Revenue (decline) / growth on a constant currency basis
(17) %
20 %
(18) %
17 %
Content reported revenue (in thousands)
$ 165,664
$ 199,796
$ 343,790
$ 402,684
Content revenue (decline) / growth
(17) %
18 %
(15) %
17 %
Content revenue (decline) / growth on a constant currency basis
(16) %
16 %
(15) %
17 %
Data, Distribution, and Services reported revenue (in thousands)
$ 56,137
$ 67,194
$ 77,181
$ 106,926
Data, Distribution, and Services revenue (decline) / growth
(16) %
34 %
(28) %
18 %
Data, Distribution, and Services revenue (decline) / growth on a
constant currency basis
(19) %
35 %
(30) %
18 %
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Cash flow information:
Net cash provided by operating activities
$ 621
$ 26,836
$ 17,991
$ 52,083
Net cash used in investing activities
$ (10,139)
$ (14,965)
$ (21,285)
$ (26,199)
Net cash used in financing activities
$ (18,457)
$ (13,878)
$ (38,407)
$ (29,699)
Adjusted free cash flow:
Net cash provided by operating activities
$ 621
$ 26,836
$ 17,991
$ 52,083
Capital expenditures
(10,115)
(11,312)
(21,710)
(22,120)
Content acquisitions
(110)
(4,081)
(301)
(4,978)
Cash received related to Giphy Retention Compensation
109
369
477
861
Legal contingency settlement
35,000
—
35,000
—
Merger related costs
2,970
5,686
10,150
15,036
Adjusted Free Cash Flow
$ 28,475
$ 17,498
$ 41,607
$ 40,882
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Content
$ 165,664
$ 199,796
$ 343,790
$ 402,684
Data, Distribution, and Services
$ 56,137
$ 67,194
$ 77,181
$ 106,926
Total revenue
$ 221,801
$ 266,990
$ 420,971
$ 509,610
Shutterstock, Inc.
Supplemental Financial Data
(unaudited)
Historical Operating Metrics
Three Months Ended
6/30/26
3/31/26
12/31/25
9/30/25
6/30/25
3/31/25
12/31/24
9/30/245
Subscribers (end of period, in thousands) (1)
951
993
1,032
1,060
1,073
1,079
459
470
Subscriber revenue (in millions) (2)
$ 99.8
$ 103.8
$ 104.7
$ 107.2
$ 108.0
$ 109.9
$ 75.7
$ 78.7
Average revenue per customer (last twelve months) (3)
$ 292
$ 284
$ 281
$ 279
$ 266
$ 244
$ 450
$ 446
Paid downloads (in millions) (4)
98.7
104.1
107.9
111.7
112.6
120.9
33.0
32.9
Subscribers, Subscriber Revenue and Average Revenue Per Customer from acquisitions are included in these metrics beginning twelve months after the closing of the respective business combination. Accordingly, the metrics include Subscribers, Subscriber revenue, and Average revenue per customer from Backgrid beginning February 2025. 2025 metrics include the counts and revenues from Envato, which was acquired in July 22, 2024.
(1) Subscribers is defined as those customers who purchase one or more of our monthly recurring products for a continuous period of at least three months, measured as of the end of the reporting period.
(2) Subscriber revenue is defined as the revenue generated from subscribers during the period.
(3) Average revenue per customer is calculated by dividing total revenue for the last twelve-month period by customers. Customers is defined as total active, paying customers that contributed to total revenue over the last twelve-month period.
(4) Paid downloads is the number of downloads that our customers make in a given period of our content. Paid downloads exclude content related to our Studios business, downloads of content that are offered to customers for no charge, including our free trials and metadata delivered through our data deal offering.
(5) Subscribers and Subscriber Revenue are presented as if Envato was acquired as of the beginning of the period presented. Average revenue per customer includes Envato historical results over the last twelve month period.
OneSpan vykázal za 2. čtvrtletí zisk 0,3 USD na akcii, nad odhadem 0,25 USD, a tržby 60,47 milionu USD také překonaly očekávání. Akcie letos přidaly asi 23,6 %.
OneSpan (OSPN - Free Report) came out with quarterly earnings of $0.3 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +20.00%. A quarter ago, it was expected that this internet security company would post earnings of $0.36 per share when it actually produced earnings of $0.39, delivering a surprise of +8.33%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
OneSpan, which belongs to the Zacks Internet - Software industry, posted revenues of $60.47 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.70%. This compares to year-ago revenues of $59.84 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
OneSpan shares have added about 23.6% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for OneSpan?While OneSpan has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for OneSpan was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.31 on $59.51 million in revenues for the coming quarter and $1.23 on $246.53 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, MultiSensor AI Holdings, Inc. (MSAI - Free Report) , has yet to report results for the quarter ended June 2026.
This company is expected to post quarterly loss of $1.20 per share in its upcoming report, which represents a year-over-year change of +70%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
MultiSensor AI Holdings, Inc.'s revenues are expected to be $2.1 million, up 47.9% from the year-ago quarter.
PANAMA CITY, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Copa Holdings, S.A. (NYSE: CPA) today released preliminary passenger traffic statistics for July 2026:
Copa Holdings (Consolidated)July
2026July
2025% ChangeASM (mm)(1)3,316.7 2,854.8 16.2% RPM (mm)(2)2,973.6 2,533.7 17.4% Load Factor(3)89.7% 88.8% 0.9p.p. Available seat miles - represents the aircraft seating capacity multiplied by the number of miles the seats are flown.Revenue passenger miles - represents the number of miles flown by revenue passengersLoad factor - represents the percentage of aircraft seating capacity that is utilized
For July 2026, Copa Holdings' capacity (ASMs) increased by 16.2%, while system-wide passenger traffic (RPMs) increased by 17.4% compared to 2025. As a result, the system load factor for the month was 89.7%, 0.9 percentage points higher than in July 2025.
Copa Holdings is a leading Latin American provider of passenger and cargo services. The Company, through its operating subsidiaries, provides service to countries in North, Central, and South America and the Caribbean. For more information, visit ir.copaair.com.
Ascent Industries vykázala ve 2. čtvrtletí růst tržeb o 37,6 % na 25,7 milionu USD a návrat k pozitivní upravené EBITDA ve výši 1,5 milionu USD. K výsledkům přispěla akvizice Midwest Graphic Sales.
Ascent Industries NASDAQ: ACNT reported higher second-quarter sales and a return to positive adjusted EBITDA as its specialty chemicals business expanded and the recently acquired Midwest Graphic Sales business began contributing to results. Management said the quarter reflected broad-based improvement in volume, pricing, revenue and profitability, although gross-margin pressure and working-capital use remained key areas of focus.
Second-quarter net sales rose 37.6% year over year to $25.7 million, an increase of $7 million. Pounds shipped increased 15.2%, while average selling prices rose about 23%. Midwest Graphic Sales, acquired May 4, contributed $1.9 million of sales during the quarter.
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Excluding Midwest, Ascent’s legacy business grew approximately 28% from a year earlier, according to President and CEO Bryan Kitchen. He said June was the company’s strongest chemical-sales month since March 2023, while the second quarter was its strongest sales quarter since the third quarter of 2022.
“We’re building a better business, not just a bigger one,” Kitchen said, describing the company’s goal of generating more recurring product revenue, higher margins, more predictable cash flow and stronger returns on invested capital.
Commercial Pipeline and Operating Improvements Ascent converted 17 commercial opportunities across 13 customers during the quarter into roughly $5.8 million of annualized revenue. Kitchen said the company achieved a 26% conversion rate, above what he characterized as a 10% to 15% specialty-chemicals industry benchmark.
About 44% of commercial wins came from the company’s core technologies, while 73% of project wins came from existing customers. The active selling-project pipeline reached a record $140 million, up approximately 33% sequentially. The increase included commercial opportunities brought in through the Midwest acquisition as well as growth in the legacy business pipeline.
Management also highlighted efforts to manage inflation in petroleum-based raw materials and freight costs. Kitchen said approximately 65% of Ascent’s raw-material spending is petroleum based, leaving the company exposed to cost pressure during heightened geopolitical tensions in the Middle East. The company’s sourcing and commercial teams worked to preserve customer supply and implement price increases where contracts allowed, he said.
Ascent remains on track with a platform-wide optimization initiative expected to produce $3 million to $5 million in annualized gross-profit improvement at run rate. The company expects the measures to be fully institutionalized by the end of 2026. One process-engineering project increased the effective capacity of a key reaction asset by more than 500,000 pounds annually, Kitchen said.
Midwest Acquisition Adds Sales and Margin Management said Midwest Graphic Sales was immediately accretive to earnings and entered Ascent’s portfolio with a gross margin of approximately 26%. The acquired business has retained key customers, secured its first new customer since joining Ascent and implemented pricing actions across its portfolio, Kitchen said.
Back-office integration was completed one quarter ahead of the company’s original commitment, while cost-synergy initiatives and the transition of manufacturing into Ascent’s network remain on schedule, according to management. Kitchen also said the combined businesses recently secured a field-trial program with a large prospective customer, though he noted that the effort remains at an early stage.
Profitability Improves, but Gross Margin Declines Adjusted EBITDA from continuing operations was $1.5 million, or 5.7% of sales, compared with an adjusted EBITDA loss of about $300,000 in the prior-year quarter. Selling, general and administrative expense declined by roughly $900,000 year over year to $5.5 million, improving to 21.5% of sales from 34.5%.
Chief Financial Officer Ryan Kavalauskas said Ascent’s longer-term objective is to reduce SG&A to approximately 15% of revenue on a run-rate basis through cost discipline, standardized processes and growth across the platform.
Gross profit increased 14% to $5.5 million, but gross margin fell to 21.6% from 26.1% a year earlier. For the first half, gross profit rose 5% to $8.4 million, while gross margin declined 320 basis points to 18.5%.
Kavalauskas attributed the margin decline to higher material costs, freight inflation and conversion costs associated with scaling new and expanding programs. Material costs increased by about 127 basis points as a percentage of sales, while other cost-of-goods-sold expenses increased by roughly 193 basis points.
The company has taken pricing and sourcing actions, but Kavalauskas said there is typically a delay before those measures are fully reflected in reported results. He said management’s near-term priority is improving sourcing, pricing realization, throughput, production planning and network utilization so that revenue growth converts more consistently into margins and cash flow.
Ascent expects a moderate gross-margin contraction in the fourth quarter compared with the stronger second- and third-quarter periods, reflecting seasonal patterns and program turnover within portions of its custom-manufacturing portfolio.
Liquidity, Working Capital and Capital Allocation Ascent ended June with $28.1 million in cash and cash equivalents, no borrowings under its revolving credit facility and $17.9 million of remaining revolver availability, for total liquidity of about $46 million.
Cash declined approximately $29.5 million from year-end, primarily due to $14.6 million spent on the Midwest acquisition, $6.9 million in share repurchases and $1.2 million of capital expenditures. Operating activities used $7.7 million of cash in the first half, largely because of working-capital needs.
The company’s cash conversion cycle increased to 75 days, up 12 days from the prior year. Management is targeting an initial five-day improvement, which it estimates could release about $1 million to $1.5 million of cash depending on the mix of working-capital improvements. Ascent aims to bring the cycle toward 70 days over time.
Management expects cash to recover into the mid-$30 million range before additional discretionary capital deployment as operating cash use moderates and deferred escrow proceeds are received. The company said it expects an $800,000 escrow related to the American Stainless Tubing sale has already been received, while $4.5 million associated with the Bristol Metal transaction is expected to be released in October 2026.
During the second quarter, Ascent repurchased about 210,000 shares for $2.9 million at an average price of $13.80 per share. First-half repurchases totaled about 506,000 shares for $6.9 million, leaving approximately 1.5 million shares available under its authorization at quarter-end.
Kavalauskas said the company’s capital-allocation priorities are liquidity, working capital, internal investment, strategic acquisitions and share repurchases, in that order. In the near term, he said the highest-return use of capital is improving cash conversion and restoring gross margin while making existing growth less cash intensive.
About Ascent Industries (NASDAQ:ACNT)Ascent Industries Co an industrials company, produces and distributes stainless steel pipe and tube and specialty chemicals in the United States and internationally. The company operates through two segments, Tubular Products and Specialty Chemicals. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and ornamental stainless steel tubes for automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries.
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SpaceX ve 2. čtvrtletí zvýšil tržby na 7,81 miliardy USD, meziročně o 92 %, a překonal odhady trhu. Objem nevyřízených zakázek dosáhl 47,5 miliardy USD.
Space giant SpaceX (NASDAQ:SPCX) reported its first quarterly financial results as a public company Tuesday after market close.
• What’s driving SPCX stock today?
Here are the highlights.
SpaceX Q2 EarningsSpaceX reported second-quarter revenue of $7.81 billion, up 92% year-over-year. The revenue total beat a Street consensus estimate of $6.93 billion according to data from Benzing Pro.
Revenue by segment was the following:
Space: $962 million, +29% year-over-year Connectivity: $4.29 billion, +66% year-over-year AI: $2.56 billion, +247% year-over-year The company reported a loss of nine cents per share, beating a Street consensus estimate of a loss of 24 cents per share.
Operating loss/income by segment was:
Space: -$542 million Connectivity: +$1.66 billion AI: -$1.26 billion SpaceX highlighted two successful Starship V3 flight tests over the last 90 days, closing $14.1 billion in cloud service agreements contracted sales and doubling Starlink subscribers year-over-year to 12 million.
The company has had 78 launches year-to-date and Starlink now serves 167 countries.
Digital assets, which include the company’s Bitcoin (CRYPTO:BTC) holdings, were $1.1 billion at the end of the quarter, down from $1.6 billion in the previous quarter.
"2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX," SpaceX Chief Financial Officer Bret Johnsen said.
What’s Next for SpaceXThe company ended the quarter with $100 billion in cash and cash equivalents.
SpaceX’s total backlog was $47.5 billion at the end of the quarter.
"This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework," Johnsen said.
SpaceX Stock Price ActionSpaceX stock is down 6.20% to $117.56 in after-hours trading Tuesday versus a 52-week trading range of $104.83 to $225.64. The company went public at $135 per share, with shares opening at $150 when the stock was public.
Image: Shutterstock
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SpaceX ve své první zprávě o výsledcích po IPO oznámila výnosy 7,8 miliardy USD, nad odhady, a nižší ztrátu, než čekali analytici. Akcie po výsledcích klesly asi o 5 %.
SpaceX Corp (NASDAQ:SPCX) reported higher revenue and a narrower-than-expected loss in its first earnings report since the satellite, launch and AI company’s initial public offering.
Revenue of $7.8 billion topped analyst estimates of $6.93 billion, up 92% year over year from $4.1 billion.
The company reported a GAAP loss of $0.09 per share, compared with analyst expectations for a loss of $0.23 per share. Net loss was $541 million, an improvement of $467 million from a loss of $1.0 billion a year earlier.
Adjusted EBITDA increased 191% to $3.5 billion from $1.2 billion.
SpaceX said revenue growth across its Space, Connectivity and AI businesses demonstrated the impact of its vertical integration strategy.
The Connectivity segment posted 66% revenue growth and 79% growth in income from operations, driven by a doubling of Starlink subscribers and continued momentum in its Enterprise and Government businesses.
The company also reported $14.1 billion in contracted sales from multiple Cloud Services Agreements and said it had been awarded more than $6 billion in multi-year US government contracts for Starshield.
SpaceX completed two Starship V3 flight tests during the past 90 days, which it said advanced its efforts toward full and rapid reusability.
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX,” the company’s CFO Bret Johnsen said. “Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements.”
Following the report, shares of SpaceX fell about 5% amid continued concerns about rising capital expenditures and impending insider lockup expirations.
SpaceX po prvním veřejném finančním reportu klesá v after-hours o 8 % na 115,28 USD. Gene Munster tvrdí, že trh přehlíží silný výhled a vyšší kapitálové výdaje.
• SpaceX stock is among today’s weakest performers. Why is SPCX stock dropping?
Gene Munster on SpaceX EarningsThe highly anticipated first public financial report and conference call from SpaceX comes with shares trading lower Tuesday.
"SPCX down 7% on great outlook given capex will be about 65% higher than the Street in Sep and Dec," Munster tweeted.
The investor said, "market missing the point."
The Deepwater Management managing partner said higher capex is good for SpaceX because the stock is early.
Munster highlighted SpaceX’s contracted revenue and rising run rate, which could hit $100 billion by the end of the year.
"Elon is the master at explaining the long-term vision in simple terms. That’s a key reason why shares of SpaceX are going higher."
Munster highlighted SpaceX beating revenue estimates and sees Cloud and Starlink being the key contributors, adding $400 million and $450 million more than expected.
With shares trading lower ahead of the conference call, Munster offered a reason.
"Makes sense. The first quarter as a public company is always expected to be a blowout. That’s what we got."
SpaceX Hints at Future GrowthHighlighting management commentary from the conference call, Munster shared two key items that could hint at future growth for the space company.
SpaceX President Gwynne Shotwell said Starlink Mobile will start at the end of 2027. SpaceX expects to acquire lots of customers from existing mobile companies to be a true fourth carrier in the U.S.
While this could mean higher capex, Shotwell said existing wireless spectrum bought from EchoStar will help in this venture.
The SpaceX president also said SpaceX expects to be on the Moon in 2028.
"In line with roughly what has been talked about before and the market doesn’t believe it," Munster said.
Munster puts a 70% chance on this happening in 2028 and a 95% chance of happening in 2029.
"Either way, we are close. That’s one reason to own SPCX. The carrot of the moon will give shares a perpetual bid."
SpaceX Stock Price ActionSpaceX stock is down 8% to $115.28 in after-hours trading Tuesday versus a 52-week trading range of $104.83 to $225.64.
Photo: Shutterstock
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Tesla čelí více než 20 aktivním soudním sporům a odhadovaná právní expozice činí 2,7 až 14,5 miliardy USD. Firma už mimosoudně vyrovnala část žaloby z rasové diskriminace.
For all Tesla (TSLA +1.64%) has achieved, and it has achieved much over the past decade plus, it faces numerous near-term challenges. Global competition is only intensifying in the electric vehicle (EV) industry, its product lineup is aging despite still selling well, and price cuts have hindered profit margins. For investors still considering investing in Tesla long-term, there is another potential speed bump in the road ahead: the company's mounting litigation exposure.
Overlooked topic There was a recent development that many investors overlooked: Tesla has confidentially settled with three of five named plaintiffs in a racism lawsuit that has been on the company's radar for nearly a decade, since 2017. In the grand scheme of that lawsuit, it doesn't change a whole lot, and there are still nearly 600 workers involved with serious allegations. Investors can't forget that California's civil rights agency has its own case, too.
Image source: Tesla.
Tesla is currently battling more than 20 active litigation fronts, ranging from wrongful death suits to false advertising about full self-driving (FSD) to the previously mentioned racial discrimination case. Part of the reason Tesla's mounting legal exposure is often overlooked, in my opinion, is that there's significant uncertainty in how these lawsuits will play out and how much they could cost the company.
Today's Change
(
1.64
%) $
5.27
Current Price
$
327.35
That said, the folks over at Electrek did an excellent job breaking it all down, and the numbers are a little alarming. When accounting for all potential costs, Tesla's litigation exposure ranges from about $2.7 billion to $14.5 billion. Another potential reason this gets overlooked is that it's not easy to see in the company's financials. Tesla doesn't break out a separate "legal reserve" line item, and it only has to set aside specific financial reserves for lawsuits if a loss is both probable and reasonably estimable.
What it all means Throughout history, there have been numerous examples of massive lawsuits bankrupting companies, but investors don't have to worry about that. Let's hypothetically say Tesla loses a handful of large lawsuits and is forced to pay out: It turns into an action that directly lowers operating income. Consider that Tesla reported operating income of $1.34 billion for the first half of 2026, and then consider even materializing over a number of years at the low end of Tesla's litigation exposure, the exposure could be a drag on earnings.
Ultimately, Tesla's liquidity is over $40 billion, and even in a highly unlikely worst-case scenario, it could absorb these payouts without any real concern for its ongoing operations. That said, Tesla's litigation woes and concerns are likely to grow, and investors need to keep its legal issues in mind when assessing uncertainty, risk, and potential long-term earnings drags.
Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
SpaceX has ramped up purchases of Tesla Megapack, spending $295 million on the battery storage devices in the second quarter and $329 million so far this year, according to the company’s earnings report released on Tuesday.
The purchase illustrates just how interconnected Elon Musk’s universe of companies are. Musk, who is the CEO and largest shareholder of SpaceX, also runs Tesla. Musk’s artificial intelligence business xAI acquired his social media platform, X, in 2025. Earlier this year, SpaceX gobbled up xAI.
The industrial-scale batteries are likely being deployed at the company’s xAI data centers. Before xAI merged with SpaceX, the AI company bought $430 million worth of Megapacks for its data centers. In the first quarter of this year, xAI had purchased only $34 million worth of the equipment. SpaceX also reported that as of December 2025, it had acquired $131 million worth of Tesla Cybertrucks at manufacturer’s suggested retail price, according to its regulatory filing.
Though xAI has leaned heavily on natural gas to power its data centers — including dozens of unpermitted turbines at a site in Mississippi not far from the Colossus data center project — large batteries like the Megapack are still a critical part of data centers.
In addition to providing substantial backup power that can be tapped in a second or less, batteries can provide extra power to GPUs when they demand it. AI data centers don’t draw power consistently. Rather, their power demand ramps up and down depending on the demands of training AI models and running inference.
Such peaks can incur significant charges from a local utility or overwhelm on-site generators. Batteries help smooth out those peaks, lowering costs while ensuring that the data center can operate consistently.
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Tim De Chant is a senior climate reporter at TechCrunch. He has written for a wide range of publications, including Wired magazine, the Chicago Tribune, Ars Technica, The Wire China, and NOVA Next, where he was founding editor.
De Chant is also a lecturer in MIT’s Graduate Program in Science Writing, and he was awarded a Knight Science Journalism Fellowship at MIT in 2018, during which time he studied climate technologies and explored new business models for journalism. He received his PhD in environmental science, policy, and management from the University of California, Berkeley, and his BA degree in environmental studies, English, and biology from St. Olaf College.
You can contact or verify outreach from Tim by emailing [email protected].
Franklin Templeton uvedl, že jeho onchain fond BENJI je nyní na BNB Chain, kde firma spravuje zhruba 1,5 miliardy USD v tokenizované hodnotě. BENJI je první americký podílový fond registrovaný v USA, který vede oficiální evidenci podílů na blockchainu.
Behind the Suits is our interview series with the institutional partners building on BNB Chain: how they got here and how their products work, told by the people doing the building.
TL;DRBENJI, Franklin Templeton's onchain money market fund, was the first U.S.-registered mutual fund to keep its official share register on blockchain. It has run every day since 2021.Most tokenized products are “digital twins.” BENJI is natively onchain: the blockchain record is the official record.The Benji Technology Platform integrated with BNB Chain in September 2025. Franklin Templeton now accounts for roughly $1.5 billion in tokenized value on the network (rwa.xyz).When Franklin Templeton's Benji Technology Platform integrated with BNB Chain last September, the announcement carried the headline facts: one of the world's largest asset managers, with $1.6 trillion under management, bringing its tokenization stack to the network. Ten months later, Franklin Templeton products account for roughly $1.5 billion in tokenized value on BNB Chain. What the announcement couldn't carry is the reasoning: why an asset manager of that size spent seven years building toward this, and what it takes to run a regulated fund on a public blockchain every day of the year.
The flagship is the Franklin OnChain U.S. Government Money Fund, ticker BENJI, the first U.S.-registered mutual fund to use blockchain technology to process transactions and maintain its official share register. That last detail matters more than it sounds. Most tokenized products are mirrors: ownership lives on a traditional system and gets reflected onchain. For BENJI, the blockchain record is the official record. Combined with the controls institutions expect (a registered transfer agent, audited smart contracts, regulated custody), it's the kind of design that makes public blockchains safe for serious money.
We spoke with Roger Bayston, Head of Digital Assets Ecosystem Development at Franklin Templeton, about the road from a 2018 research project to core infrastructure.
What milestones defined Franklin Templeton's journey into digital assets?“Our journey started in 2018, well before tokenization was a mainstream conversation in asset management,” Bayston says. “The early work was genuine R&D: we wanted to understand what distributed ledgers could actually do for an asset manager, starting with the costly reconciliations and duplicate ledgers that weigh on capital markets.”
“The defining milestone came in 2021, when we launched what was the first U.S. registered mutual fund to use blockchain-integrated technology to process transactions and record share ownership. That fund has run continuously, every day of the year, ever since. From there, the milestones have been about breadth, extending the platform across multiple blockchains and building out fund structures for different markets and client types around the world, and more recently bringing our work onto BNB Chain.”
How has the digital assets strategy evolved?“It's moved through three phases,” Bayston says. “First, exploration, asking whether moving records onto a blockchain could make our business more efficient. We chose to tokenize a government money market fund as the test case because its daily yield and stable value made it a clean way to prove the concept. Second, commercialization, as the regulatory picture became clearer we went from experiment to a live, compliant system that can trade, manage risk, administer custody and maintain the shareholder record onchain. Third, expansion, both across networks and across asset types.”
“Along the way we became participants in the networks we use, running our own validating nodes, and we've expanded our crypto research and investment capabilities. The throughline is that we're not experimenting at the edges anymore; we're operationalizing this as core infrastructure.”
What role should traditional asset managers play in bridging TradFi and DeFi?“Our role is to bring the rigor of regulated finance onto open infrastructure, not to leave it behind,” Bayston says. “As a registered transfer agent, we maintain full control of the official ownership record, so if something needs to be corrected, it can be. That's the kind of investor protection institutions and regulators expect, and it's exactly what's needed for this technology to be trusted at scale.”
Then comes the distinction that separates BENJI from most of the tokenization market. “Most tokenized products today are ‘digital twins,' where ownership is really tracked on a parallel traditional system and only mirrored onchain,” he says. “We took the harder path of building genuinely onchain, because that's what unlocks the real benefits. The job of a manager like ours is to be the bridge: pairing decades of regulatory and investment discipline with the efficiency and openness of these networks, so that trusted products work in modern markets.”
What drew Franklin Templeton to BNB Chain?“Our philosophy is to meet investors where they're already active, and BNB Chain has a large, engaged base of both retail and institutional users,” Bayston says. “Practically, it also offers the things that make tokenized real-world assets work at scale: fast settlement, high throughput and low transaction costs, alongside tooling designed to support regulated products. That lets us extend access to our offerings to a community that's genuinely active onchain.”
On BNB Chain, those characteristics come with numbers attached: block times of 0.45 seconds, finality in 1.125 seconds, and fees low enough that per-transaction cost stops being a design constraint.
“Just as important is how we show up on any network,” he adds. “Security and compliance sit at the front of everything we do, and as a registered transfer agent we retain full control of the official ownership record, we work with third-party firms to audit our smart-contract code, and assets stay in regulated custody. Our approach is to bring that discipline to wherever our clients want to engage, and adding BNB Chain supports the broader interoperable, multi-chain strategy we're building.”
How do BNB Chain's speed, costs, and user base benefit clients?“The technical characteristics translate directly into client benefits,” Bayston says. “Low fees and high throughput are what make it realistic to do things onchain that simply don't work when every transaction is expensive or slow, things like continuous settlement and the kind of real-time, even intraday, yield mechanics we've built. Fast finality supports the always-on nature of these markets, which don't keep banking hours. And a large, active user base means the access we're extending actually reaches people who are participating onchain today.”
“For clients, that adds up to efficiency, reach and optionality: the ability to hold and move trusted, yield-bearing assets in a modern, around-the-clock environment.”
Where is the greatest potential for RWA tokenization?“The nearest-term, highest-conviction area is tokenized cash and government money market funds, because the utility is already proving out,” Bayston says. “A good example is using tokenized, yield-bearing money market fund shares as collateral, letting institutions keep assets in regulated custody and still put them to work, rather than parking idle balances. That solves a real pain point.”
“From there, we expect the aperture to widen considerably. Over time we think a very wide range of assets moves onto blockchain rails, for transparency, speed, efficiency and cost, but ultimately because that's where customer preference is heading. The biggest potential isn't any single asset class; it's tokenization becoming foundational, underpinning fund structures, private assets and cash management alike.”
What excites you over the next 6–12 months, and what does institutional success look like?“I'm most excited about the maturing of the infrastructure: real-time settlement becoming routine, better interoperability across networks, and growing regulatory clarity, which is what gives institutions the confidence to commit,” Bayston says. “We're also seeing institutional interest migrate toward the regulated, trusted end of the spectrum, which is healthy.”
“As for what real institutional success looks like, it's when the technology becomes invisible. Success is when onchain is simply how products are built and used, measured by genuine utility and everyday adoption rather than speculation. When clients are using these tools without thinking about the rails underneath, that's when we'll know this has truly arrived.”
What's nextBehind the Suits will continue with more guests coming up with more conversations with the institutions building tokenized funds, stablecoin infrastructure, and onchain yield products here.
In the meantime, see how RWAs are scaling on BNB Chain, explore our institutional solutions, or connect with our BD team to bring your products onchain.
Stellar uvedl, že ve 2. čtvrtletí dosáhl 3 miliard USD v reálných aktivech na síti a rekordních 11,4 miliardy USD objemu převodů stablecoinů. Aktivní účty překročily 10,7 milionu.
We've spent seven years making the same bet: that real financial infrastructure would eventually need public rails — open, compliant, reliable, low-cost — built for institutions and real-world users alike. Q2 is the quarter that bet became the market's conclusion.
It became visible from both ends of the financial system, days apart. On one end, DTCC. The institution overseeing more than $114 trillion across U.S. capital markets selected Stellar as one of the first public blockchains for tokenization. On the other, MoneyGram launched MGUSD, bringing a regulated digital dollar to a cash network serving more than 60 million customers, many in markets where access is still the problem.
The same rail. The same week. The same reason. We walked through all of it on the Q2 webinar. Here's the short version.
Two validations, days apartThis is the shape of the quarter: a barbell. The world's largest financial-infrastructure player on one end, the world's most access-constrained users on the other, both moving toward the same infrastructure for the same reason.
Institutions aren't choosing public blockchains because they suddenly became fashionable. They're choosing Stellar because it was built for the requirements they bring: compliance-aware architecture, validator accountability in consensus, a privacy roadmap they can plan around, and low, predictable fees, all from the start, not retrofitted.
When you custody trillions, "the network was down" is not a sentence you can say. In more than a decade, Stellar has never made anyone say it.
The proof underneathThat reliability was tested harder than ever this quarter. By incident count, the first half of 2026 was the most attacked half-year our industry has recorded, with 207 exploits, per TRM Labs, and dozens in Q2 alone.
Through it, Stellar held: 99.99%+ uptime, average fees around one hundredth of a penny, and zero core protocol security incidents. Active accounts crossed 10.7 million.
Most chains treat advancing and staying reliable as a trade-off. We don't. Yardstick shipped a governed freeze, the only consensus-driven mechanism of its kind on a major public chain, proof that the network hardens as it grows.
RWAs crossed $3BThe headline number: $3 billion in real-world assets on Stellar, with three billion-dollar milestones in a single calendar year — $1B in January, $2B in April, $3B in June.
The broader tokenization market grew roughly 50% over that period. Stellar grew four times faster. This isn't just market growth; it's share gain, and it's broad. Tokenized U.S. Treasuries, sovereign bond funds across the EU, UK, and U.S., money market funds, tokenized credit through Centrifuge, and gold through Matrixdock's XAUm. Multiple asset classes, different issuers and jurisdictions, the same conclusion.
Assets in motionAssets accumulating is half the story. The other half is assets moving.
Stablecoin transfer volume reached $11.4 billion in Q2, an all-time high, up 72% quarter over quarter, and our first double-digit-billion quarter, with velocity holding around 33x. That's value moving at record scale on public infrastructure.
A next layer is forming on top of that movement: yield-bearing stablecoins, led by Figure's YLDS, the first SEC-registered yield-bearing dollar product on Stellar. As value moves toward everyday usage, usage moves toward more sophisticated products. And with Circle's CCTP live and connecting 23 chains, those assets aren't confined to Stellar.
Builders: the connective layerIf assets are one end of the barbell and people are the other, builders are the layer that connects them. This quarter, that layer was the story.
Stellar reached 2,968 monthly active developers as of June 30: an all-time high, #2 globally, ahead of both Solana and Bitcoin, according to Electric Capital. Activity is up 125% year over year while every other major ecosystem contracted. That's structural growth.
Distribution doesn't happen because assets exist. It happens because builders make assets usable, turning a tokenized fund into a savings product in Lagos, a remittance in Mexico City, a payroll rail in Istanbul. The growth is concentrated where the needs are real: Nigeria, India, Turkey, and Brazil. Behind it is a deliberate engine: programs, hackathons, and Stellar Community Fund rounds 42 and 43, which put $5.5 million behind 55 companies.
Distribution, region by regionDifferent markets, different entry points, same direction.
In LATAM, the entry point is remittances and access: MGUSD, YLDS, and Stellar House Mexico City. In Europe, it's regulated issuance: AllUnity's EURAU, Cashlink, and Spiko approaching $1B. In Africa, it's utility and payment access, where sending money still costs 8.8% on average. In APAC, it's institutional credibility and new corridors: Matrixdock, Bitkub, Ant Digital's TopNod, Kenanga, and Marketnode. And the Middle East and Turkey expanded materially this quarter, from Istanbul Blockchain Week to Tokinvest bringing BENJI to the region.
The pattern is the same everywhere: regulated assets, usable wallets, local distribution, and infrastructure that fits the market it serves.
What comes nextThe roadmap is built to carry this demand. On the webinar, Chief Product Officer Tomer Weller walked through all of it, privacy, agents, and quantum, and how we ship.
Confidential tokens are landing on the primitives shipped at Yardstick: configurable, opt-in, and compliant, on a base layer that stays open and auditable. Stellar joined the x402 Foundation, with a board seat, to help shape how agents pay on the internet. And on June 9 we published our Quantum Preparedness Plan, a three-stage path to post-quantum security that's already becoming protocol. One major upgrade per quarter, with the next already in planning: advancement without sacrificing reliability.
The next chapter is distributionThe roadmap is built to carry this demand. On the webinar, Chief Product Officer Tomer Weller walked through all of it, privacy, agents, and quantum, and how we ship.
Confidential tokens are landing on the primitives shipped at Yardstick: configurable, opt-in, and compliant, on a base layer that stays open and auditable. Stellar joined the x402 Foundation, with a board seat, to help shape how agents pay on the internet. And on June 9 we published our Quantum Preparedness Plan, a three-stage path to post-quantum security that's already becoming protocol. One major upgrade per quarter, with the next already in planning: advancement without sacrificing reliability.
Stellar už hostí přes 520 milionů USD v tokenizovaném neamerickém státním dluhu a v tomto segmentu předstihl Ethereum. Tahounem jsou hlavně mexické, brazilské, eurové a korejské dluhopisy.
Stellar has quietly outpaced Ethereum in the niche category of non-US government debt tokenization, with on-chain data showing that over $520 million in these assets have been issued on the Stellar network and the figure continues to rise. This development highlights Stellar’s increasing importance in the global decentralized finance (DeFi) landscape, particularly for assets outside the United States.
While Ethereum still dominates the much larger market for tokenized US Treasuries, Stellar has established itself as the preferred network for a growing segment of sovereign bonds from countries other than the US. Recent data indicates that Stellar leads this specific market segment, outpacing other major chains in attracting issuers of non-US government bonds.
The transition has been gradual. Platforms such as Etherfuse have played a significant role by launching “Stablebonds,” which are tokenized funds backed by short-term government debt instruments from multiple countries, directly on Stellar’s blockchain. This has contributed substantially to the rising volumes.
Several non-US sovereign assets, including Mexican CETES, Brazilian Tesouro bonds, euro-denominated government paper, and Korean Treasury Bonds (KTBs), are now available through offerings on Stellar. Spiko has also helped drive volumes by providing euro-based treasury products and other international sovereign instruments.
Technology and practical advantagesStellar’s appeal for these issuers lies in its minimal transaction fees, quick settlement times, and a design optimized for payments. For institutions dealing with global sovereign debt and requiring efficient cross-border settlement, the network’s infrastructure has become increasingly attractive.
The network’s technical strengths have also encouraged smaller sovereign issuers to experiment with tokenized instruments. One notable example is the Marshall Islands’ digital sovereign bond, designed to support on-chain universal basic income payments. These projects underline a trend: issuers seeking alternatives to US Treasuries continue to opt for Stellar.
Ethereum remains prominent in the overall real-world asset (RWA) tokenization narrative and holds a commanding lead in US government debt. However, Stellar’s dominance in non-US sovereign debt marks a significant development, especially as issuers and investors diversify their on-chain offerings.
Stellar’s low fees, fast finality, and payments-first design made it an easy fit for these issuers. When you’re dealing with cross-border sovereign instruments from Mexico, Brazil, the EU, or Korea and wanting them to move cheaply and settle quickly, the network’s architecture starts looking less like a nice-to-have and more like the right tool for the job.
USDC integration and broader ecosystem supportAdding to Stellar’s momentum, Circle’s USDC stablecoin is now live and native on the network, supporting the Cross-Chain Transfer Protocol (CCTP). This integration enables seamless movement of dollar liquidity onto Stellar, eliminating many complications commonly associated with wrapped tokens. A direct USDC on-ramp enhances Stellar’s position as a payment and tokenization platform for both sovereign issuers and global investors.
Such technical developments have coincided with the rise of new platforms like CryptoAppsy. This application provides real-time price monitoring, detailed charting, and multi-currency portfolio management, empowering investors to track opportunities and respond swiftly based on critical data such as Fed interest rate decisions or altcoin launches. CryptoAppsy’s smart price alerts and customizable news filters further support active market participants in this evolving sector.
While most tokenization headlines still focus on US-based government debt due to the dominance of the dollar, the recent rise in tokenized Mexican, Brazilian, European, and Korean bonds has pushed Stellar into the spotlight among international issuers. The network’s increasing volume in this sector may signal a broader shift toward alternative blockchains for government debt tokenization.
The pattern is consistent: issuers looking beyond US Treasuries keep choosing the same chain.
Stellar’s approach relied on providing cost-effective, easy-to-use infrastructure rather than publicity. With the current volume of over $520 million in non-US sovereign debt, XLM is steadily capturing a niche in the tokenization race that is drawing growing attention from governments and market participants around the world.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Ondo za 30 dní zvýšilo počet držitelů tokenizovaných produktů o 15,7 % na 192 056 a měsíční objem převodů o 27,8 % na 2,76 miliardy USD. Nejrychleji roste segment tokenizovaných akcií, který táhnou NVIDIA i Tesla.
@Ondo's tokenized product platform is growing at a pace that is outrunning its own assets. Holders of @Ondo tokenized products rose 15.7% over the past 30 days to 192,056, while monthly transfer volume jumped 27.8% to $2.76 billion. The fact that activity is accelerating faster than assets under management suggests demand is broadening rather than simply tracking price moves.
Tokenized Stocks Driving New Users The clearest growth signal is coming from the equity side of the platform. The NVIDIA product alone has accumulated over 20,600 holders, with Tesla past 12,200, and nearly every equity line on the platform showing holder growth. The platform now lists more than 260 tokenized U.S. stocks and ETFs across three blockchains. Tokenized stocks have emerged as the fastest-growing asset class on Ethereum in 2026, with Ondo leading the sector.
Ondo Finance held a 39.4% market share in the tokenized stocks segment, though it still leads tokenized stocks issuance even as competitors narrow the gap. The growth story is also notable for what is behind it structurally. Each token is fully backed by the underlying security, held inside a U.S.-registered broker-dealer, and tracks total return including dividends.
Ethereum Leads, But Multi-Chain Footprint Widens @ethereum remains the primary home for value on the platform, accounting for 53% of the total at $1.9 billion. @StellarOrg comes in second at $533.7 million, with @BNBCHAIN contributing $345.4 million. The multi-chain distribution reflects a deliberate strategy to avoid liquidity concentrating on a single network.
Ondo Global Markets crossed $1 billion in total value locked within eight months of launch, a milestone that puts the platform's trajectory in sharp context. Stablecoins took roughly three years to hit $1 billion. Tokenized Treasuries took about two. Tokenized stocks did it in eight months.
Looking ahead, Ondo Finance President Ian De Bode expects tokenized stocks to reach $3 billion by the end of 2026. The latest holder and volume data suggests that target is within reach, with user-level demand now acting as a key driver alongside institutional inflows.
Sources:
Blockonomi: Ondo Exec Sees Tokenized Stocks Reaching $3B in 2026
TheStreet: Ondo Finance exec sees tokenized stocks hitting $3B by year-end
The Coin Republic: Tokenized Stocks Surge, Ondo Leads
AMD ve fiskálním 2. čtvrtletí překonala odhady, tržby meziročně vzrostly o 50 % a EPS téměř o 250 %. Růst táhl hlavně byznys datových center, který stoupl o 107 %.
SummaryAdvanced Micro Devices delivered a strong Q2, with revenues up 50% and EPS rising nearly 250% year-over-year, driven by data center strength.AMD's data center segment grew 107%, but overall growth and margins still lag NVIDIA, which remains the dominant data center pure-play.Despite robust results, AMD trades at a high 60–70x earnings multiple, making its risk-reward less attractive versus peers like NVDA and AVGO.I maintain a neutral stance on AMD, citing elevated valuation and stronger risk-adjusted opportunities elsewhere in the chip sector.Looking for a helping hand in the market? Members of Cash Flow Club get exclusive ideas and guidance to navigate any climate. Learn More » Getty Images
Article Thesis Advanced Micro Devices (AMD) reported its fiscal Q2 results on Tuesday afternoon, beating estimates. The company's growth is looking pretty good thanks to the strength of its data center business, although AMD continues to lag behind NVIDIA (
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Circle a Dinari spustily platformu pro tokenizované obchodování s americkými akciemi a chtějí dostat všechny složky S&P 500 na blockchain. Obchody mají probíhat přes USDC v self-custody peněženkách.
PANews August 4 news, according to Fortune magazine, tokenized securities company Dinari, headquartered in California, USA, announced a partnership with stablecoin issuer Circle to provide U.S. investors with blockchain-based tokenized stock trading services, and plans to bring all S&P 500 index constituents onto the blockchain.
Dinari stated that its platform represents underlying stocks through “dShares,” where each token corresponds to real securities held in custody by regulated institutions. Investors can buy and sell stocks using USDC via self-custody wallets, with support for instant settlement, cross-platform asset transfers, and other features.
The company said the model aims to connect the roughly $300 billion stablecoin market with the more than $60 trillion U.S. stock market. The Dinari platform is currently live in 85 jurisdictions and supports over 6,000 tokenized assets.
Dinari co-founder and CEO Gabriel Otte said that in the future, stock tokens themselves could become the trusted ledger of stock ownership. With the tokenized asset market growing rapidly, bringing traditional securities onto the blockchain is becoming a key area of exploration for financial institutions.
Sei Network se chystá integrovat Dinari a nabídnout první self-custodial portfolio amerických akcií na své vrstvě 1. Přístup má zahrnout 724 tokenizovaných akcií, včetně všech firem z S&P 500, se zúčtováním v USDC.
Sei Network Prepares to Launch Tokenized U.S. Equity Trading@SeiNetwork is gearing up to integrate @DinariGlobal, a move that would bring the first self-custodial U.S. equity portfolio to the high-speed Layer 1 blockchain. The upcoming launch is set to give investors access to 724 tokenized stocks, including every company in the S&P 500, settled directly in @Circle's $USDC.
Dinari's dShares platform enables tokenized U.S. stocks and ETFs that preserve the rights and protections of traditional securities, including guaranteed redemption at the National Best Bid and Offer, cash dividends, and automated corporate actions. As an SEC-registered transfer agent, Dinari has built infrastructure that enables broker-dealers, exchanges, fintechs, and other regulated financial institutions to issue, custody, trade, and service tokenized securities within the existing regulatory framework.
The integration bridges what proponents describe as the $75 trillion U.S. stock market with Sei's high-performance infrastructure. Sei offers sub-400ms finality, a parallelized EVM, and a modular architecture that supports continuous optimization. That speed makes T+0 settlement and 24/7 liquidity operationally viable for both domestic and international participants, something traditional equity markets, which close on weekends and settle on a T+1 cycle, have long been unable to offer.
A Broader Push to Put U.S. Equities OnchainThe Sei integration is part of a broader expansion by Dinari across multiple blockchain environments. Bitcoin.com announced a partnership with Dinari in May 2026 to offer tokenized U.S. equities to its ecosystem, giving users of the Bitcoin.com Wallet access to over 300 tokenized U.S. equities and ETFs. Dinari and tZERO also joined forces to create a turnkey platform for tokenized U.S. equities for broker-dealers, packaging issuance, trading, custody, settlement, and shareholder servicing into one regulated framework.
On August 4, 2026, Dinari announced the expansion of its U.S. operations to financial institutions via its broker-dealer subsidiary Dinari Securities LLC, allowing broker-dealers, banks, fintechs, and wealth platforms to offer tokenized securities products and services to both retail and institutional customers.
The regulatory backdrop is also shifting in Dinari's favor. Dinari recently joined the Blockchain Association, the leading trade association representing the digital asset industry in Washington, D.C., to contribute its expertise as policymakers continue shaping the future of tokenized securities. The Sei Network integration, once live, would represent one of the most direct on-ramps yet for crypto-native investors seeking exposure to mainstream U.S. equities without leaving self-custody.
Sources:
Dinari Joins Blockchain Association to Advance Tokenized Securities Policy - Chainwire
Dinari and tZERO Join Forces on Tokenized U.S. Equities Platform - CoinDesk
Bitcoin.com Partners with Dinari to Bring Tokenized U.S. Equities to a Global Audience - GlobeNewswire
Dinari nasadil platformu dShares nativně na Avalanche C-Chain a otevřel tak on-chain přístup k 724 americkým akciím a ETF, včetně všech titulů z S&P 500. dShares jsou kryté v poměru 1:1 a zachovávají práva akcionářů.
@DinariGlobal has deployed its dShares™ platform natively on the @Avax C-Chain, opening direct on-chain access to U.S.-listed equities for eligible investors and businesses. The rollout covers 724 stocks and ETFs, including every constituent of the S&P 500, all held within a self-custodial framework.
What dShares Are and How They Work dShares are 1:1 backed by underlying U.S. equities and retain all shareholder rights, including dividends and corporate actions, with voting rights retained where permissible. Unlike synthetic products or derivatives that merely mimic price movements, dShares retain shareholder rights, meaning dividends, corporate actions, and instant settlement.
Dinari also operates as an SEC-registered transfer agent, while its broker-dealer subsidiary is registered with the SEC and belongs to FINRA and SIPC. It obtained a broker-dealer registration in June 2025 for its subsidiary, making it the first U.S. platform cleared to legally offer blockchain-based shares to domestic investors.
Settlement on the platform runs through @Circle's $USDC, enabling seamless intraday transactions. Dividend distributions are delivered natively on-chain, allowing participants to reinvest immediately within the digital ecosystem without routing funds back through traditional infrastructure.
Multi-Chain Reach and Avalanche's Growing RWA Footprint The Avalanche C-Chain deployment extends a multi-chain strategy that already covers @Ethereum, @Arbitrum, and @Base. The C-Chain integration extends compliant, 24/7 tokenized equity settlement into Avalanche's primary smart contract environment, making these assets accessible across DeFi protocols including DEXs, lending, and collateral use.
For Avalanche, routing dShares activity through C-Chain can increase transactions, total value locked, and demand for $AVAX as gas, while also strengthening Avalanche's positioning in the tokenized securities and RWA segment. Avalanche currently holds over $1.6 billion in tokenized assets and surpasses $473 million in monthly transfer volume, positioning itself as one of the most significant real-world asset ecosystems in the crypto industry.
The broader Dinari Financial Network aims to unify clearing and settlement for tokenized equities across various chains, similar to the DTCC's role in the U.S. stock market. All dShares are issued under a compliance-first framework that includes KYC, AML, and third-party audits.
Sources:
Avalanche Foundation: Dinari Launches the Dinari Financial Network
CoinDesk: Tokenized Equity Specialist Dinari to Launch Blockchain With Avalanche
Crypto Briefing: Dinari Launches dShares on Avalanche C-Chain
Circle Gateway nově nativně podporuje ERC-1271, takže peněženky chytrých kontraktů mohou přímo podepisovat a spravovat USDC bez prostředníka. Funkce je nasazena na Ethereum, Base, Arbitrum a Avalanche.
Circle just removed one of the more annoying friction points in the USDC ecosystem. Circle Gateway now natively supports ERC-1271, the Ethereum standard that lets smart contracts validate signatures, meaning smart contract wallets can directly sign and manage USDC balances without needing a delegate account as an intermediary.
What changed and why it matters Circle Gateway is the company’s cross-chain infrastructure layer, designed to give users a unified, non-custodial USDC balance accessible across multiple blockchains in under 500 milliseconds. The problem was that Gateway’s “burn intents,” the mechanism for moving USDC out, required signatures from externally owned accounts (EOAs). Smart contract wallets couldn’t produce those signatures natively, requiring a delegate-account system — essentially a middleman EOA that would sign on behalf of the smart contract.
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ERC-1271, formally known as EIP-1271, solves this by establishing a standard way for smart contracts to verify signatures. Over 50 protocols already use it, including Uniswap. Circle’s adoption means Gateway now speaks the same language as the broader smart contract ecosystem.
The rollout has been systematic, going live across Ethereum, Base, Arbitrum, and Avalanche.
Gateway vs. CCTP: different tools, different jobs Circle already has a cross-chain product called the Cross-Chain Transfer Protocol (CCTP). CCTP handles point-to-point transfers. Gateway does something fundamentally different: it provides a unified balance that’s accessible from any supported chain without requiring you to bridge or pre-fund on each network. The non-custodial design includes a 7-day trustless withdrawal option. Gateway’s architecture uses a combination of smart contracts and off-chain attestation services to achieve sub-500-millisecond access times.
USDC’s total supply sits at roughly $75.6 billion as of June 2026.
The account abstraction angle Account abstraction wallets have repeatedly hit walls when protocols only support EOA signatures. The v2.2 release back in 2023 first introduced EIP-1271 for authorization functions, but the full integration into Gateway’s burn-intent flow took until now. More than 50 protocols already support ERC-1271.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
S&P Global Ratings uvedla, že 6 z 11 sledovaných stablecoinů má nyní dostatečnou nebo vyšší schopnost udržet peg k fiat měně. $USDT dostal nejhorší hodnocení 5 (weak).
Six of 11 Stablecoins Rated Adequate or AboveS&P Global Ratings (@SPGlobalRatings) has released an update to its Stablecoin Stability Assessment (SSA) framework, finding that six of the 11 stablecoins covered by its assessments now have an adequate or above ability to maintain their peg to fiat currency. The agency cited progress among issuers as a key factor, with stronger asset quality and good risk management practices driving the improvement.
S&P's SSAs use a five-level scale: 1 (very strong), 2 (strong), 3 (adequate), 4 (constrained), and 5 (weak). The assessments consider factors including asset quality, governance frameworks, regulatory compliance, redeemability, liquidity, and track record. Leading the pack, $EURC and $USDC both carry a score of 2 (strong), as does $USDG, which received its first assessment in February 2026, and $USDP, which was also rated 2 (strong).
$USDT Holds the Weakest Score Despite Dominating the MarketThe contrast at the bottom of the rankings is notable. S&P Global Ratings gave $USDT the weakest possible assessment: 5 (weak) on its 1 to 5 scale. $TUSD and Ethena's $USDe share that bottom tier. S&P noted that "significant differences remain across stablecoins which can increase the risk of de-pegging."
That low rating sits in sharp contrast to $USDT's dominance in the broader market. Tether's $USDT is the largest stablecoin at roughly $187 billion in circulating supply, accounting for about 59% of the total stablecoin market. Over the past three quarters, S&P revised two of its 11 SSAs to a weaker level, while the other nine remained unchanged.
The update underscores a growing divide in how institutional-grade analysis views stablecoin quality versus raw market adoption. While regulated, transparent issuers such as Circle and Paxos score well on S&P's framework, the market's most widely used token continues to attract the agency's lowest rating, a tension that regulators and institutional investors are likely to scrutinize more closely as the stablecoin sector matures.
Sources:
S&P Global Ratings press release: More than half of Stablecoin Stability Assessments are adequate or above (PR Newswire, August 4, 2026)
S&P Global Ratings: Stablecoin Stability Assessments overview
Stablecoin market cap data, June 2026 (Transak)
Spuštění Open USD vyvolalo obavy o USDC a smazalo miliardy z tržní hodnoty Circle, ale Coinbase, Visa i Mastercard nyní říkají, že chtějí podporovat více stablecoinů současně.
Jeremy Allaire, cofounder, chairman and CEO of Circle speaks at Hong Kong Fintech Week in 2024. (HK Fintech Week)Summary
The launch of Open USD, backed by Coinbase, Visa and Mastercard, initially sparked fears of a direct challenge to Circle’s USDC and wiped billions from Circle’s market value.Executives at Coinbase, Visa and Mastercard now say they are pursuing a multi-stablecoin, multi-chain strategy, positioning Open USD as an additional network rather than a replacement for USDC.Analysts say many Open USD partners have made only light commitments and that execution and existing liquidity in USDC and USDT will matter more than the size of Open USD’s consortium.When Open Standard announced Open USD a month ago, investors quickly interpreted the backing from Coinbase (COIN), Visa (V) and Mastercard (MA) as a direct challenge to Circle (CRCL) and its $72 billion USDC stablecoin.
The announcement erased billions of dollars from Circle's market value. Shares fell as much as 20% — and have yet to recover — as the consortium unveiled more than 140 launch partners, fueling concerns that some of USDC's largest commercial partners were lining up behind a rival digital dollar.
The reaction highlighted a broader shift in the stablecoin market. Once dominated by a handful of crypto-native issuers like Circle, the sector now is drawing banks, payment networks and fintech firms eager to issue or distribute digital dollars as regulation clears the way for wider adoption. With that, the competitive battle is increasingly extending beyond issuing tokens to securing the payment rails, exchanges and financial platforms that put them into users' hands.
Recent earnings calls from Open USD's highest-profile backers, however, paint a more nuanced picture. Executives at Coinbase, Visa and Mastercard all said they intend to support multiple stablecoins instead of betting on a single winner, describing Open USD as another network to connect to rather than a replacement for USDC.
Multi-coin strategyDuring its second-quarter earnings call last week, Coinbase reassured investors about its close relationship with Circle. Chief Financial Officer Alesia Haas said the exchange has already met the conditions to renew its commercial agreement with Circle and will continue growing the USDC ecosystem.
CEO Brian Armstrong also said Coinbase remains a "multi-stablecoin platform" and wants to support whichever stablecoins customers choose to use. The exchange already supports USDC alongside Tether's USDT and PayPal's PYUSD, he said, with Open USD creating "additional business opportunities and revenue opportunities."
Ryan McInerney, CEO of Visa, struck a similar tone during his firm’s earnings call, describing the company as "multi-coin, multi-chain" and saying that Visa's role is to help clients connect to whichever stablecoins gain adoption.
"Our role is not to pick winners," he said.
Notably, Visa offered the first live example of pushing Open USD to customers. The firm last month launched its Visa Stablecoin Platform, giving banks, fintechs and payment providers tools to access, store, redeem and move stablecoins, with OUSD serving as the initial supported token.
Mastercard CEO Michael Miebach said the company already supports USDC, Paxos-led Global Dollar Network (USDG) and other stablecoins, describing Open USD as "another coin that we will enable across our network."
"Choice has always been a key criteria and will be the same here in stablecoins," he said.
Miebach described Open USD as a payments-focused utility with shared economics, while acknowledging governance would not involve all 140-plus partners. "Otherwise we wouldn't move anything forward," he said. The firm – and recently acquired BVNK — are also listed as ecosystem members of USDG, another consortium-governed stablecoin project that includes Robinhood among its members.
An Open Standard spokesperson did not comment on the executives remarks and governance behind the project, adding that the firm will share more details at launch later this year.
Support versus commitmentThe executives' comments suggest that observers may have read too much into Open USD's kick-off partner list, analysts noted.
"It is becoming increasingly clear that the commitment from OUSD's partners is closer to a soft LOI [letter of intent] than a strategic bet," Lorenzo Valente, director of digital asset research at ARK Invest, wrote on X. "Supporting OUSD is very different from committing meaningful resources, distribution, or balance sheet to making it win."
Amey Dandawate, director at Bluechip Ratings, told CoinDesk that joining the consortium amounts to "a free option" that allows companies to participate if Open USD gains traction without making meaningful upfront commitments.
Others cautioned that execution will be more important than the — otherwise impressive — size of the partner list.
Owen Lau, managing director at Clear Street, said the market overreacted to the initial announcement. USDC and Tether's USDT already benefit from deep liquidity and network effects, he said, making adoption a much bigger challenge than signing up partners.
"It is very difficult to align the interests of so many partners with different incentives and agendas," Lau said. Still, he said the participation of Visa, Mastercard and Coinbase could help accelerate stablecoin use in consumer payments regardless of which token ultimately gains the most traction.
Dragonfly general partner Rob Hadick said the executives reinforced his view that Stripe remains the driving force behind Open USD, while Visa and Mastercard have commercial reasons to remain neutral because they work with competing issuers.
"Their businesses require them to not alienate partners and customers," Hadick told CoinDesk. "They may push OUSD, but they must be open."
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The Evolution of the Crypto CEX Landscape: A Case Study on Binance
The Evolution of the Crypto CEX Landscape: A Case Study on Binance
Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.
Jun 29, 2026
Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.
Why it matters:
Binance remains crypto’s leading exchange, expanding from spot and derivatives into RWAs, payments, savings, yield, and broader financial services.
Innovative Industrial Properties, Inc. (IIPR) Q2 2026 Earnings Call August 4, 2026 12:00 PM EDT
Company Participants
Eli Kanter - Senior Associate of Finance
Alan Gold - Executive Chairman
Paul Smithers - President, CEO & Director
Ben Regin - Chief Investment Officer
David Smith - CFO & Treasurer
Conference Call Participants
Aaron Grey - Alliance Global Partners, Research Division
William Kirk - ROTH Capital Partners, LLC, Research Division
William Catherwood - BTIG, LLC, Research Division
Presentation
Operator
Hello, everyone. Thank you for joining us, and welcome to the Innovative Industrial Properties, Inc. Q2 2026 Earnings Call. [Operator Instructions]
I will now hand the conference over to Eli Kanter, Director of Finance.
Eli Kanter
Senior Associate of Finance
Thank you for joining the call. Presenting today are Alan Gold, Executive Chairman; Paul Smithers, President and Chief Executive Officer; David Smith, Chief Financial Officer; and Ben Regin, Chief Investment Officer.
Before we begin, I'd like to remind everyone that some of the statements made during today's conference call, including statements regarding our potential lease transactions that are subject to letters of intent, are forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995 and subject to risks and uncertainties. Actual results may differ materially, and we refer you to our SEC filings, specifically our most recent report on Forms 10-K and 10-Q, for a full discussion of risk factors that could cause actual results to differ materially from those contained in forward-looking statements. We are not obligated to update or revise any forward-looking statements, whether due to new information, future events or otherwise, except as required by law.
In addition, on today's call, we will discuss certain non-GAAP financial information such as FFO, normalized FFO and AFFO. You can find this information, together with reconciliations to the most directly comparable GAAP financial measure, in
Parker-Hannifin před hospodářskými výsledky 6. srpna čeká EPS 8,27 USD a tržby 5,57 miliardy USD. Firma má rekordní backlog 12,5 miliardy USD a ve 3. čtvrtletí zvýšila upravený EPS o 16 % na 8,17 USD.
Parker-Hannifin (PH -0.49%) focuses on motion control, hydraulics, pneumatics, filtration, and aerospace systems, so it is somewhat unique, with no single conglomerate overlapping with 100% of its product portfolio.
The industrial company reports earnings on Aug. 6 and analysts, on average, are expecting earnings per share (EPS) of $8.27 and revenue of $5.57 billion. The stock has consistently beaten analysts' estimates, though. Considering the company's track record, it may make sense to buy the stock before Aug. 6.
Here are three reasons why it might be a good buy-and-hold industrial stock, regardless of what happens with the company's fourth-quarter earnings.
Image source: Getty Images.
The company's record backlog and momentum Supported by the successful 2022 integration of Meggitt and the pending $2.55 billion acquisition of CIRCOR Aerospace, Parker-Hannifin entered the quarter with a record order backlog, reaching $12.5 billion in the fiscal third quarter ended March 31. It also had $5.5 billion in sales, up 12% year over year, and reported record adjusted earnings per share (EPS) of $8.17 for the quarter, up 16% from the same period last year.
Today's Change
(
-0.49
%) $
-4.87
Current Price
$
992.65
High aerospace backlogs provide top-line visibility and margin expansion that cushion against potential weakness in broader short-cycle industrial markets. Its aerospace systems segment had $1.8 billion in sales in the third quarter, with a 22% rise in commercial original equipment manufacturer (OEM) sales and a 14% rise in aftermarket sales. The segment's operating margin grew by 80 basis points year over year to 29.5%. The company's guidance points to 12% year-over-year growth in the segment.
The company should also benefit from the rise in military spending spurred by the conflict in Iran, as its products are part of nearly every military aircraft.
High-quality cash generation and capital allocation Parker's capital deployment remains a key catalyst. Robust free cash flow -- with $2.6 billion in the third quarter -- has enabled rapid debt paydown, while simultaneously funding strategic bolt-on mergers and acquisitions and returning cash to shareholders. It had repurchased $825 million worth of its shares through the third quarter while cutting its long-term debt to $6.7 billion.
A dependable, growing dividend The company is a Dividend King, one of a small list of stocks that have increased their quarterly dividend for 50 or more consecutive years. While many Dividend Kings now have single-digit dividend increases, Parker-Hannifin increased its dividend by 11% to $2 per share in April, marking the 70th consecutive year of dividend increases. Its five-year dividend growth rate is almost 94%.
One reason not to buy Parker-Hannifin The stock is up more than 37% so far this year and is trading near record highs, not far off its 52-week high of $1,034.96. Its price-to-earnings ratio (P/E) is above 36, and it has a PEG ratio around 8.5. Those numbers are historically high for the stock, but compared to its competitors, they are somewhat conservative.
However, any near-term weakness in short-cycle industrial PMI data, management caution regarding full-year 2027 guidance, or an earnings print that merely meets (rather than beats) estimates could trigger post-announcement profit-taking and volatility.
SpaceX plánuje se Starlink Mobile získat „poměrně dost“ zákazníků od AT&T, Verizon a T-Mobile díky lepší síti. Musk uvedl, že služba má odstartovat na konci příštího roku.
‘100 Times Better’ Network“We have 65 MHz of bandwidth available to us through the EchoStar spectrum, which gives a massive increase in capability,” Musk said on SpaceX’s conference call.
“Another way to look at it is we will also probably 10x the number of satellites. So simplifying, you could look at the Starlink Mobile leveraging the next-generation satellite and the EchoStar spectrum as being 100 times better — 10 times 10 — than what we’ve got right now.”
Musk added that the upgraded network will support “voice and video calls over Signal and WhatsApp,” and pointed to reliability as a key selling point.
“We will eliminate dead zones, leveraging basically the satellites in orbit. It’ll be better during any sort of natural disaster because, surprisingly, even though space movies make space look super dangerous, it’s a pretty quiescent environment,” he said.
Eyeing the Big Three’s $600 BillionOn the revenue opportunity, Musk sized up the incumbent carriers: “The big three in the United States — AT&T, Verizon and T-Mobile — roughly between them, $600 billion a year. And I anticipate us to be able to acquire quite a few of their customers because I think our service will be better.”
Musk said SpaceX will “start to fly the satellites next year” with service launching “end of next year.”
Legacy Carriers SlipT-Mobile US (NASDAQ:TMUS), which already has a direct-to-cell partnership with SpaceX, was down 2.77% to $172.30.
SpaceX stock was down 8.09% at $115.19 following the conference call Tuesday.
Photo: Shutterstock
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Kimberly-Clark Corporation (KMB) Q2 2026 Earnings Call August 4, 2026 8:00 AM EDT
Company Participants
Christopher Jakubik - Investor Relations Contact
Michael Hsu - Chairman & CEO
Russell Torres - President & COO
Nelson Urdaneta - Senior VP, CFO & Interim Principal Accounting Officer,
Conference Call Participants
Nik Modi - RBC Capital Markets, Research Division
Christopher Carey - Wells Fargo Securities, LLC, Research Division
Bonnie Herzog - Goldman Sachs Group, Inc., Research Division
Michael Lavery - Piper Sandler & Co., Research Division
Stephen Robert Powers - Deutsche Bank AG, Research Division
Lauren Lieberman - Barclays Bank PLC, Research Division
Robert Moskow - TD Cowen, Research Division
Peter Grom - UBS Investment Bank, Research Division
Javier Escalante Manzo - Evercore ISI Institutional Equities, Research Division
Presentation
Operator
Good morning, and welcome to the Kimberly-Clark Second Quarter 2026 Earnings Call. [Operator Instructions]
I will now hand the floor over to Chris Jakubik, Vice President, Investor Relations. Please go ahead.
Christopher Jakubik
Investor Relations Contact
Good morning, everyone. This is Chris Jakubik, Head of Investor Relations at Kimberly-Clark, and thank you for joining us.
I would like to remind everyone that during our comments today, we will make some forward-looking statements that are based on how we see things today. Actual results may differ due to risks and uncertainties, and these are discussed in our earnings release and our filings with the SEC. We will also discuss some non-GAAP financial measures during these remarks. These non-GAAP financial measures should not be considered a replacement for and should be read together with GAAP results. And you can find the GAAP and the reconciliations within our earnings release and the supplemental materials posted at investor.kimberly-clark.com.
With that, I'll turn it over to Mike for a few opening comments.
Michael Hsu
Chairman & CEO
Thank you, Chris, and thank you all for joining us today. As I mentioned
Na First Solar a některé členy vedení byla podána hromadná žaloba kvůli údajným klamavým tvrzením o dopadu cel a výhledu společnosti. Žaloba se týká nákupů akcií mezi 26. únorem 2025 a 24. únorem 2026.
NEW YORK, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against First Solar, Inc. (“First Solar” or the “Company”) (NASDAQ: FSLR) and certain officers. The class action, filed in the United States District Court for the Eastern District of New York, and docketed under 26-cv-03787, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired First Solar securities between February 26, 2025 and February 24, 2026, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are an investor who purchased or otherwise acquired First Solar securities during the Class Period, you have until August 24, 2026, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
First Solar is a solar technology company that provides photovoltaic (“PV”) solar energy solutions. First Solar manufactures and sells PV solar modules that convert sunlight into electricity. As relevant here, First Solar’s product offerings include its Series 6 Plus PV module, manufactured at facilities in locations including Malaysia and Vietnam.
At the outset of the Class Period, Defendants announced that First Solar would reduce production output of Series 6 modules at facilities in Malaysia and Vietnam in 2025, to account for circumstances including, inter alia, an “uncertain U.S. policy environment following the 2024 U.S. elections,” and “a supply and demand imbalance for Southeast Asian product”. Notwithstanding these circumstances, First Solar reassured investors that its primary market, the United States, enjoyed stable module prices.
Then, on April 2, 2025, United States (“U.S.”) President Donald J. Trump announced a series of “reciprocal” tariffs on U.S. imports from all countries, including rates of 24% and 46% on Malaysia and Vietnam, respectively, presenting a challenge to First Solar. These tariffs were subsequently reduced to 10%. Throughout the Class Period, Defendants continued to assure investors that the dynamic policy landscape presented a “long term favorable” for First Solar and actually “strengthened [its] relative position in the solar manufacturing industry”.
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Defendants had overstated First Solar’s capacity to manage the impact of U.S. tariff policy on the Company’s business; (ii) Defendants understated the extent to which its responses to U.S. tariff policy, including the intentional underutilization of production facilities in Malaysia and Vietnam, and attempted relocation of production to the U.S., were likely to negatively impact First Solar’s projected performance in the 2026 fiscal year; and (iii) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
The truth began to emerge on January 7, 2026, when Jefferies downgraded First Solar to Hold from Buy, noting that during 2025, the Company had lowered guidance, faced significant de-bookings and experienced margin compression through 2025. Jefferies also flagged that “[international] facilities remain a pain point while tariffs exist” and “underutilization at [international] facilities remains a concern.” The Jefferies analyst also predicted that First Solar’s deployment opportunities were likely to be more limited in 2026.
On this news, First Solar’s stock price fell $27.67 per share, or 10.29%, to close at $241.11 per share on January 7, 2026.
Then, on February 24, 2026, First Solar issued a press release “announc[ing] financial results for the fourth quarter and year ended December 31, 2025.” Among other items, First Solar announced earnings that missed expectations by a wide margin and issued lower-than-expected FY 2026 revenue guidance, citing customer headwinds such as permitting delays under the Trump administration. Following First Solar’s announcement, Baird Research downgraded its stock to Neutral from Outperform, citing “several question marks in forward outlook”.
On this news, First Solar’s stock price fell $33.09 per share, or 13.61%, to close at $210.12 per share on February 25, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Gilead Sciences (GILD - Free Report) came out with a quarterly loss of $6.75 per share versus the Zacks Consensus Estimate of a loss of $7.07. This compares to earnings of $2.01 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.53%. A quarter ago, it was expected that this HIV and hepatitis C drugmaker would post earnings of $1.89 per share when it actually produced earnings of $2.03, delivering a surprise of +7.41%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Gilead, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $7.8 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.92%. This compares to year-ago revenues of $7.08 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Gilead shares have added about 6.9% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Gilead?While Gilead has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Gilead was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.16 on $7.8 billion in revenues for the coming quarter and -$0.78 on $30.38 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Axsome Therapeutics (AXSM - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10.
This biopharmaceutical company is expected to post quarterly loss of $0.99 per share in its upcoming report, which represents a year-over-year change of -7.6%. The consensus EPS estimate for the quarter has been revised 14.8% lower over the last 30 days to the current level.
Axsome Therapeutics' revenues are expected to be $224.52 million, up 49.6% from the year-ago quarter.
Q2 Revenue of $1,180 million, an increase of 18% on a reported and 17% on a constant currency basis
All-time high of 640 million global monthly active users, an increase of 11%
Completed over $2 billion of share repurchases year-to-date at an average price of $18.17
SAN FRANCISCO--(BUSINESS WIRE)--Pinterest, Inc. (NYSE: PINS) today announced financial results for the quarter ended June 30, 2026.
Revenue was $1,180 million, growing 18% year over year. On a constant currency basis, revenue would have grown 17% year over year. Global Monthly Active Users ("MAUs") increased 11% year over year to 640 million. GAAP net loss was $47 million and Adjusted EBITDA was $311 million. Net cash provided by operating activities was $293 million and free cash flow was $270 million. “Our Q2 results reflect the scale and strength of our platform: more than $1.1 billion in revenue, growing 18%, and 640 million monthly active users, our 11th consecutive quarter of double digit user growth,” said Bill Ready, CEO of Pinterest. “AI is at the heart of our momentum and is a clear accelerant for our business. It is trained on our unique human curation of style and taste, making Pinterest more personalized and actionable for users, while improving performance for advertisers and creating more opportunities to monetize over the long term."
Q2 2026 Financial Highlights
The following table summarizes our consolidated financial results (in thousands, except percentages, unaudited):
Three Months Ended June 30,
% Change
2026
2025
Revenue
$
1,179,654
$
998,227
18
%
Constant currency % growth(1)(2)
17
%
Net income (loss)
$
(46,669
)
$
38,755
NM
Net income (loss) margin
(4
)%
4
%
Non-GAAP net income(2)
$
249,518
$
228,270
9
%
Adjusted EBITDA(2)
$
311,307
$
250,776
24
%
Adjusted EBITDA margin(2)
26
%
25
%
Net cash provided by operating activities
$
292,885
$
207,693
41
%
Free cash flow(2)
$
269,933
$
196,683
37
%
____________ NM = Not meaningful (1)
On a constant currency basis, revenue for the three months ended June 30, 2026 was $1,169.3 million due to a $10.4 million favorable impact of changes in foreign exchange rates.
(2)
For more information on these non-GAAP financial measures, please see "―About non-GAAP financial measures" and the tables under "―Reconciliation of GAAP to non-GAAP financial results" included at the end of this release. Q2 2026 Other Highlights
The following table sets forth our revenue, MAUs and average revenue per user (ARPU) based on the geographic location of our users (in millions, except ARPU and percentages, unaudited):
Three Months Ended June 30,
% Change
2026
2025
Revenue - Global
$
1,180
$
998
18
%
Revenue - U.S. and Canada
$
880
$
745
18
%
Revenue - Europe
$
213
$
191
12
%
Revenue - Rest of World
$
87
$
63
38
%
MAUs - Global
640
578
11
%
MAUs - U.S. and Canada
106
102
4
%
MAUs - Europe
157
146
8
%
MAUs - Rest of World
377
329
15
%
ARPU - Global
$
1.86
$
1.74
7
%
ARPU - U.S. and Canada
$
8.30
$
7.29
14
%
ARPU - Europe
$
1.35
$
1.30
4
%
ARPU - Rest of World
$
0.23
$
0.19
21
%
Guidance
For Q3 2026, we expect revenue to be in the range of $1,190 million to $1,210 million, representing 13% - 15% growth year over year, which assumes a modest headwind from foreign exchange based on current spot rates. We expect Q3 2026 Adjusted EBITDA* to be in the range of $335 million to $355 million.
We intend to provide further details on our outlook during the conference call.
Webcast and conference call information
A live audio webcast of our second quarter 2026 earnings release call will be available at investor.pinterestinc.com. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press release, including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures and slide presentation are also available. A recording of the webcast will be available at investor.pinterestinc.com for 90 days.
We have used, and intend to continue to use, our investor relations website at investor.pinterestinc.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.
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 Exchange Act of 1934, as amended, about us and our industry that involve substantial risks and uncertainties. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and are often characterized by the use of words such as "believes," "estimates," "expect," "may," "will," "can," "could," "would", "might," "continue," "intends," "plans," "forecasts," "strategy," "projections," "goals," "trends," "projects," "targets," "anticipates," "potential," "looking ahead," "long-term" or and similar expressions, or by discussions of strategy, plans or intentions. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from historical results or any future results, performance or achievements expressed, suggested or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, statements about: general economic uncertainty in global markets and a worsening of global economic conditions or low levels of economic growth, including inflation, tariffs and related retaliatory actions and other trade protection measures, stress in the banking industry, foreign exchange fluctuations and supply-chain issues; the effect of general economic and political conditions; our financial performance, including revenue, cost and expenses and cash flows; our ability to attract, retain and recover users and maintain and grow their level of engagement; our ability to provide content that is useful and relevant to users' personal taste and interests; our ability to develop successful new products or improve existing ones; our ability to maintain and enhance our brand and reputation; potential harm caused by compromises in security, including our cybersecurity protections and resources and costs required to prevent, detect and remediate potential security breaches; potential harm caused by changes in online application stores or internet search engines' methodologies, particularly search engine optimization methodologies and policies; discontinuation, disruptions or outages in third-party single sign-on access; our ability to compete effectively in our industry; our ability to scale our business, including our monetization efforts; our ability to attract and retain advertisers and scale our revenue model; our ability to attract and retain creators and publishers that create relevant and engaging content; our ability to develop effective products and tools for advertisers, including measurement tools; our ability to expand and monetize our platform internationally; our ability to effectively manage the growth of our business; our ability to continue to use and develop artificial intelligence ("AI") as well as managing the challenges and risks posed by AI; our ability to successfully manage our flexible work model with a more distributed workforce; our ability to sustain profitability; decisions that reduce short-term revenue or profitability or do not produce the long-term benefits we expect; fluctuations in our operating results; our ability to raise additional capital on favorable terms or at all; our ability to realize anticipated benefits from mergers and acquisitions, joint ventures, strategic partnerships and other investments; our ability to protect our intellectual property; our ability to receive, process, store, use and share data, and compliance with laws and regulations related to data privacy and content; current or potential litigation and regulatory actions involving us; our ability to comply with modified or new laws and regulations applying to our business, and potential harm to our business as a result of those laws and regulations; real or perceived inaccuracies in metrics related to our business; disruption of, degradation in or interference with our use of Amazon Web Services and our infrastructure; our ability to implement our restructuring plan effectively; and our ability to attract and retain personnel. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed in our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2026, which is available on our investor relations website at investor.pinterestinc.com and on the SEC website at www.sec.gov. All information provided in this release and in the earnings materials is as of August 4, 2026. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.
About non-GAAP financial measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we use the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP costs and expenses (including non-GAAP cost of revenue, research and development, sales and marketing, and general and administrative), non-GAAP income (loss) from operations, non-GAAP net income (loss), non-GAAP net income (loss) per share, constant currency revenue and free cash flow. The presentation of these financial measures is not intended to be considered in isolation, as a substitute for or superior to the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparative purposes. We compensate for these limitations by providing specific information regarding GAAP amounts excluded from these non-GAAP financial measures.
We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization expense, share-based compensation expense, payroll tax expense related to share-based compensation, interest income (expense), net, other income (expense), net, provision for (benefit from) income taxes and certain other non-recurring or non-cash items impacting net income (loss) that we do not consider indicative of our ongoing business performance. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue. Non-GAAP costs and expenses (including non-GAAP cost of revenue, research and development, sales and marketing, and general and administrative) and non-GAAP net income (loss) exclude amortization of acquired intangible assets, share-based compensation expense, payroll tax expense related to share-based compensation and restructuring charges. In addition to these exclusions, we also subtract an assumed provision for income taxes to calculate non-GAAP net income. We calculate the non-GAAP income tax provision using a fixed long-term projected tax rate in order to provide better consistency across reporting periods. The fixed long-term projected tax rate uses a financial projection that excludes the direct impact of our non-GAAP adjustments and eliminates the effects of items that can vary in size and frequency. For 2025 and 2026, we used a long-term projected tax rate of 20%, which reflects currently available information, as well as other factors and assumptions. The non-GAAP tax rate could be subject to change for a variety of reasons, including significant changes in the geographic earnings mix or changes in tax laws and regulations. We re-evaluate this long-term rate on an annual basis or if any significant events that may materially affect this long-term rate occur. Non-GAAP income (loss) from operations is calculated by subtracting non-GAAP costs and expenses from revenue. Non-GAAP net income (loss) per share is calculated by dividing non-GAAP net income (loss) by diluted weighted-average shares outstanding. We calculate constant currency revenue by translating our current period revenue using the corresponding prior period’s monthly exchange rates for currencies other than the U.S. dollar. We define free cash flow as net cash provided by operating activities less purchases of property and equipment. Free cash flow is not intended to represent our residual cash flow available for discretionary expenditures. We use these non-GAAP financial measures to evaluate our operating results and for financial and operational decision-making purposes. We believe these measures help identify underlying trends in our business that could otherwise be masked by the effect of the income and expenses they exclude. We also believe these measures provide useful information about our operating results, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to key metrics we use for financial and operational decision-making. We present these non-GAAP measures to assist potential investors in seeing our operating results through the eyes of management and because we believe these measures provide an additional tool for investors to use in comparing our operating results over multiple periods with other companies in our industry. There are a number of limitations related to the use of non-GAAP financial measures rather than the nearest GAAP equivalents. For example, Adjusted EBITDA excludes: (i) certain recurring, non-cash charges such as depreciation of fixed assets and amortization of acquired intangible assets, although these assets may have to be replaced in the future, and (ii) share-based compensation expense and payroll tax expense related to share-based compensation, which have been, and will continue to be for the foreseeable future, significant recurring expenses and an important part of our compensation strategy. In addition, constant currency revenue excludes the effect of changes in foreign currency exchange rates, which have an actual effect on our operating results, and free cash flow does not reflect our future contractual commitments arising from purchases of property and equipment.
For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the tables under "―Reconciliation of GAAP to non-GAAP financial results" included at the end of this release.
Limitation of key metrics and other data
The numbers for our key metrics, which include our MAUs and ARPU, are calculated using internal company data based on the activity of user accounts. We define an MAU as an authenticated Pinterest user who visits our website, opens our mobile application or interacts with Pinterest through one of our browser or site extensions, such as the Save button, at least once during the 30-day period ending on the date of measurement. The number of MAUs does not include Shuffles users unless they would otherwise qualify as MAUs. Unless otherwise indicated, we present MAUs based on the number of MAUs measured on the last day of the current period. We measure monetization of our platform through our ARPU metric. We define ARPU as our total revenue in a given geography during a period divided by the average of the number of MAUs in that geography during the period. We calculate average MAUs based on the average of the number of MAUs measured on the last day of the current period and the last day prior to the beginning of the current period. We calculate ARPU by geography based on our estimate of the geography in which revenue-generating activities occur. We use these metrics to assess the growth and health of the overall business and believe that MAUs and ARPU best reflect our ability to attract, retain, engage and monetize our users, and thereby drive revenue. While these numbers are based on what we believe to be reasonable estimates of our user base for the applicable period of measurement, there are inherent challenges in measuring usage of our products across large online and mobile populations around the world. In addition, we are continually seeking to improve our estimates of our user base, and such estimates may change due to improvements or changes in technology or our methodology.
PINTEREST, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value)
(unaudited)
June 30,
December 31,
2026
2025
ASSETS
Current assets:
Cash and cash equivalents
$
422,484
$
969,342
Marketable securities
852,417
1,497,811
Accounts receivable, net
932,000
997,849
Prepaid expenses and other current assets
116,446
90,735
Total current assets
2,323,347
3,555,737
Property and equipment, net
97,447
66,451
Operating lease right-of-use assets
143,050
150,399
Intangible assets, net
83,037
6,083
Goodwill
475,290
100,227
Deferred tax assets
1,616,367
1,592,153
Other assets
20,840
21,082
Total assets
$
4,759,378
$
5,492,132
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
145,148
$
129,810
Accrued expenses and other current liabilities
464,663
335,663
Total current liabilities
609,811
465,473
Convertible notes, net (1)
981,128
—
Operating lease liabilities
215,507
220,581
Other liabilities
59,034
60,840
Total liabilities
1,865,480
746,894
Commitments and contingencies
Stockholders’ equity:
Class A common stock, $0.00001 par value, 6,666,667 shares authorized, 490,712 and 584,866 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively; Class B common stock, $0.00001 par value, 1,333,333 shares authorized, 74,785 and 79,680 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively
6
7
Additional paid-in capital
2,886,635
4,612,205
Accumulated other comprehensive income (loss)
(1,180
)
4,333
Retained earnings
8,437
128,693
Total stockholders’ equity
2,893,898
4,745,238
Total liabilities and stockholders’ equity
$
4,759,378
$
5,492,132
PINTEREST, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Revenue
$
1,179,654
$
998,227
$
2,187,168
$
1,853,215
Costs and expenses:
Cost of revenue
257,354
203,009
495,906
402,279
Research and development
451,010
359,624
831,799
691,289
Sales and marketing
374,273
313,075
692,124
566,995
General and administrative
137,880
126,849
241,397
232,459
Restructuring
14,335
—
61,432
—
Total costs and expenses
1,234,852
1,002,557
2,322,658
1,893,022
Loss from operations
(55,198
)
(4,330
)
(135,490
)
(39,807
)
Interest income (expense), net
7,334
28,022
25,120
55,315
Other income (expense), net
(1,295
)
10,960
(2,289
)
15,479
Income (loss) before provision for (benefit from) income taxes
(49,159
)
34,652
(112,659
)
30,987
Provision for (benefit from) income taxes
(2,490
)
(4,103
)
7,597
(16,690
)
Net income (loss)
$
(46,669
)
$
38,755
$
(120,256
)
$
47,677
Net income (loss) per share:
Basic
$
(0.08
)
$
0.06
$
(0.20
)
$
0.07
Diluted
$
(0.08
)
$
0.06
$
(0.20
)
$
0.07
Weighted-average shares used in computing net income (loss) per share:
Basic
562,913
676,852
599,629
676,688
Diluted
562,913
689,837
599,629
689,598
PINTEREST, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Operating activities
Net income (loss)
$
(46,669
)
$
38,755
$
(120,256
)
$
47,677
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
11,785
6,090
20,611
11,938
Share-based compensation
324,517
227,234
555,963
414,660
Deferred income taxes
(6,702
)
(5,925
)
(1,368
)
(27,999
)
Non-cash charitable contributions
12,198
13,495
12,198
13,495
Net amortization of investment premium and discount
(2,207
)
(4,105
)
(5,428
)
(9,513
)
Other
6,321
16,132
(570
)
16,892
Changes in assets and liabilities:
Accounts receivable
(100,000
)
(49,784
)
95,004
135,297
Prepaid expenses and other assets
(5,771
)
(23,814
)
(27,746
)
(22,853
)
Operating lease right-of-use assets
9,129
7,023
19,730
14,245
Accounts payable
75,136
(4,284
)
(8,433
)
8,752
Accrued expenses and other liabilities
25,553
(3,883
)
102,417
(14,285
)
Operating lease liabilities
(10,405
)
(9,241
)
(21,214
)
(16,907
)
Net cash provided by operating activities
292,885
207,693
620,908
571,399
Investing activities
Purchases of property and equipment
(22,952
)
(11,010
)
(39,293
)
(18,299
)
Purchases of marketable securities
(210,159
)
(462,975
)
(438,808
)
(878,311
)
Sales of marketable securities
32,721
10,540
436,611
12,890
Maturities of marketable securities
246,275
377,376
647,214
809,600
Acquisition of business, net of cash acquired
—
—
(446,954
)
—
Net cash provided by (used in) investing activities
45,885
(86,069
)
158,770
(74,120
)
Financing activities
Proceeds from exercise of stock options, net
—
—
—
8,053
Repurchases of Class A common stock
(78,578
)
(52,626
)
(2,024,886
)
(227,626
)
Shares repurchased for tax withholdings on release of restricted stock units and restricted stock awards
(111,633
)
(105,714
)
(180,532
)
(199,468
)
Proceeds from issuance of convertible notes, net of issuance costs (1)
(5,091
)
—
979,894
—
Purchase of capped calls related to convertible notes
(99,187
)
—
(99,187
)
—
Other financing activities
—
—
(1,890
)
—
Net cash used in financing activities
(294,489
)
(158,340
)
(1,326,601
)
(419,041
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
122
1,376
50
2,278
Net increase (decrease) in cash, cash equivalents and restricted cash
44,403
(35,340
)
(546,873
)
80,516
Cash, cash equivalents and restricted cash, beginning of period
384,086
1,257,077
975,362
1,141,221
Cash, cash equivalents and restricted cash, end of period
$
428,489
$
1,221,737
$
428,489
$
1,221,737
PINTEREST, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(in thousands)
(unaudited)
Three Months Ended
June 30,
2026
2025
Share-based compensation by function: (1)
Cost of revenue
$
8,484
$
4,983
Research and development
212,537
145,939
Sales and marketing
52,155
38,715
General and administrative
46,553
37,597
Total share-based compensation
$
319,729
$
227,234
Payroll tax expense related to share-based compensation by function:
Cost of revenue
$
247
$
145
Research and development
6,238
4,898
Sales and marketing
2,263
1,957
General and administrative
1,279
1,287
Total payroll tax expense related to share-based compensation
$
10,027
$
8,287
Amortization of acquired intangible assets by function: (1)
Cost of revenue
$
3,654
$
1,337
Sales and marketing
916
135
General and administrative
197
197
Total amortization of acquired intangible assets
$
4,767
$
1,669
Reconciliation of total costs and expenses to non-GAAP costs and expenses:
Total costs and expenses
$
1,234,852
$
1,002,557
Share-based compensation (1)
(319,729
)
(227,234
)
Payroll tax expense related to share-based compensation
(10,027
)
(8,287
)
Amortization of acquired intangible assets (1)
(4,767
)
(1,669
)
Restructuring charges
(14,335
)
—
Non-cash charitable contributions
(12,198
)
(13,495
)
Total non-GAAP costs and expenses
$
873,796
$
751,872
PINTEREST, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(in thousands, except per share amounts)
(unaudited)
Three Months Ended
June 30,
2026
2025
Reconciliation of net income (loss) to Adjusted EBITDA:
Net income (loss)
$
(46,669
)
$
38,755
Depreciation and amortization (1)
10,216
6,090
Share-based compensation (1)
319,729
227,234
Payroll tax expense related to share-based compensation
10,027
8,287
Interest (income) expense, net
(7,334
)
(28,022
)
Other (income) expense, net
1,295
(10,960
)
Benefit from income taxes
(2,490
)
(4,103
)
Restructuring charges (2)
14,335
—
Non-cash charitable contributions
12,198
13,495
Adjusted EBITDA
$
311,307
$
250,776
Reconciliation of net income (loss) to non-GAAP net income:
Net income (loss)
$
(46,669
)
$
38,755
Share-based compensation (1)
319,729
227,234
Payroll tax expense related to share-based compensation
10,027
8,287
Amortization of acquired intangible assets (1)
4,767
1,669
Restructuring charges (2)
14,335
—
Non-cash charitable contributions
12,198
13,495
Income tax effects and tax adjustments (3)
(64,869
)
(61,170
)
Non-GAAP net income
$
249,518
$
228,270
Basic weighted-average shares used in computing net income (loss) per share
562,913
676,852
Weighted-average dilutive securities (4)
14,715
12,985
Diluted weighted-average shares used in computing non-GAAP net income per share
577,628
689,837
Non-GAAP net income per share
$
0.43
$
0.33
Reconciliation of free cash flow:
Net cash provided by operating activities
$
292,885
$
207,693
Less:
Purchases of property and equipment
(22,952
)
(11,010
)
Free cash flow
$
269,933
$
196,683
_______________ (1)
Excludes share-based compensation expense of $4.8 million and amortization expense of $1.6 million included in restructuring charges for the three months ended June 30, 2026.
(2)
We have excluded restructuring charges associated with our Restructuring Plan from Adjusted EBITDA because it is non-recurring and not reflective of our ongoing business operations or the underlying trends in our business.
(3)
Includes the income tax effect of our non-GAAP adjustments using a long-term projected tax rate of 20% and other tax adjustments.
(4)
Gives effect to potential common stock instruments such as stock options, unvested restricted stock units and unvested restricted stock awards.
Amgen (AMGN - Free Report) came out with quarterly earnings of $6.29 per share, beating the Zacks Consensus Estimate of $5.6 per share. This compares to earnings of $6.02 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +12.32%. A quarter ago, it was expected that this world's largest biotech drugmaker would post earnings of $4.73 per share when it actually produced earnings of $5.15, delivering a surprise of +8.88%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Amgen, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $10.05 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.52%. This compares to year-ago revenues of $9.18 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Amgen shares have added about 15.8% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Amgen?While Amgen has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Amgen was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $5.71 on $9.69 billion in revenues for the coming quarter and $22.31 on $37.73 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 42% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Humacyte, Inc. (HUMA - Free Report) , is yet to report results for the quarter ended June 2026.
This company is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of +58.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Humacyte, Inc.'s revenues are expected to be $1.39 million, up 363.3% from the year-ago quarter.
Na Intuit a některé její členy vedení byla podána hromadná žaloba kvůli údajným klamavým tvrzením o růstu a konkurenceschopnosti, zejména v souvislosti s TurboTax. Firma dříve snížila výhled růstu tržeb TurboTax z 8 % na 7 %.
NEW YORK, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Intuit Inc. (“Intuit” or the “Company”) (NASDAQ: INTU) and certain officers. The class action, filed in the United States District Court for the Northern District of California, and docketed under 26-cv-07086, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Intuit securities between August 22, 2025 and May 20, 2026, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are an investor who purchased or otherwise acquired Intuit securities during the Class Period, you have until September 8, 2026, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Intuit provides financial management, payments and capital, compliance, and marketing products and services in the United States. The Company has four reportable business segments: (i) Global Business Solutions; (ii) Consumer; (iii) Credit Karma; and (iv) ProTax. Intuit’s Consumer segment provides do-it-yourself (“DIY”) and assisted income tax preparation products and services under the “TurboTax” brand name, whereas its ProTax segment provides tax-preparation software products and electronic tax filing, payment, and related products and services. The Company sells its products and services through direct sales channels, multichannel shop-and-buy experiences, mobile application stores, and partner and other channels.
At all relevant times, Defendants touted purportedly significant “momentum” across Intuit’s various business segments, particularly with respect to its tax-related business. Defendants attributed this purported “momentum” to, inter alia, Intuit’s purportedly significant competitive advantages, including integration of artificial intelligence (“AI”) in its business and operations.
For example, in August 2025, Defendants provided financial guidance for Intuit’s fiscal full year (“FY”) of 2026, ended July 31, 2026, including 8% revenue growth in its TurboTax business, citing “outstanding execution across our platform” and “breakthrough adoption in assisted tax” as a result of the aforementioned purported competitive advantages.
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) they had overstated Intuit’s competitive advantages and growth, as well as the overall strength and sustainability of its business model and operations; (ii) in reality, Intuit was losing significant business in its tax-related business, particularly in its TurboTax business, as a result of, inter alia, increasing competitive and pricing pressures; (iii) accordingly, Intuit’s previously issued FY 2026 TurboTax revenue growth guidance was unreliable and/or unrealistic; and (iv) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
The truth began to emerge on May 20, 2026, when, during pre-market hours, Reuters published an article entitled “Intuit to cut 17% of global jobs to streamline operations, memo shows”. Citing an internal Company memorandum and email from Defendant Sasan K. Goodarzi (“Goodarzi”), Intuit’s Chairman and Chief Executive Officer, to staff earlier in the day, the article reported that “Intuit . . . is laying off about 17% of its workforce, or about 3,000 employees worldwide, to streamline operations and sharpen focus on its key bets including its AI efforts[.]” The article further revealed that Intuit “is also winding down its Reno and Woodland Hills offices as part of a strategic restructuring to consolidate teams in key hubs, according to the memo.”
On this news, Intuit’s stock price fell $15.78 per share, or 3.95%, to close at $383.93 per share on May 20, 2026.
The same day, during post-market hours, Intuit issued a press release announcing its fiscal third quarter (“Q3”) 2026 results. Therein, Defendants reported weak Q3 2026 tax season revenue, including, inter alia, TurboTax revenue that grew by only 7% year-over-year, versus consensus estimates of at least 8% revenue growth. During the accompanying earnings call held the same day, also during post-market hours, Defendant Sandeep S. Aujla, Intuit’s Executive Vice President and Chief Financial Officer, acknowledged that, with respect to TurboTax, “we did not have the overall tax season we expected[.]” On the same call, Defendant Goodarzi likewise stated that he was “dissatisfied with our performance”, noting “[w]e faced pressure among the most price-sensitive DIY filers earning less than $50,000 a year”, and that “[w]e lost on price.” Defendant Goodarzi also revealed that TurboTax online paying units were expected to grow by only 2% as total Internal Revenue Service filers were expected to decline by approximately 30 basis points, representing the “most significant industry-wide contraction since the post-COVID tax season.” Accordingly, Defendant Goodarzi acknowledged that “we expect TurboTax to grow 7% for the full year”—down from Defendants’ prior guidance of 8% growth—and that, “[t]o reaccelerate this part of our business,” Defendants will need to “evolve our business model by delivering the right lineups and price points to meet simple filers’ needs at the low end and lean into the power of our broader Consumer platform to monetize beyond tax.”
Following these disclosures, Intuit’s stock price fell $76.86 per share, or 20.02%, to close at $307.07 per share on May 21, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Fortitude koupila nové datové centrum o výkonu 12,5 MW v Prosseru v Nebrasce a její vlastní energetické portfolio tak přesáhlo 60 MW. Tím posiluje těžbu Zcash (ZEC) a Silbert míří na první veřejně obchodovanou institucionální platformu pro těžbu Zcash.
Cover image via www.youtube.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
Digital Currency Group (DCG) CEO Barry Silbert, who remains one of the crypto industry's biggest entrepreneurs, has shared a major infrastructure milestone within his portfolio as DCG-controlled mining platform Fortitude has officially confirmed the acquisition of a new 12.5 MW data center in Prosser, Nebraska.
The deal, valued at approximately $4.7 million, pushed Fortitude's total owned power portfolio beyond 60 MW. The new milestone expands DCG's industrial foundation for mining Zcash (ZEC). The holding company's chief openly calls financial privacy "a fundamental right" and his next "large asymmetric bet" in the crypto industry.
Why is Fortitude buying up Nebraska for ZEC?For most market participants, the focus on Zcash looks unconventional, but for Fortitude, it is pure mathematics. The Prosser site has become the company's third facility in Nebraska. Deploying infrastructure within a single regional cluster gives the miner several operational advantages:
Lower electricity costs. Concentrating its facilities in Nebraska gives Fortitude an electricity rate of around $0.045 per kWh.Lower Zcash production costs. Thanks to cheap energy, the direct cost of mining one ZEC falls by 40% to $40 per coin.Control over the network's hash rate. Taking into account its $31.5 million contract with Bitmain to purchase 9,000 Antminer Z15 Pro miners, the company's share of Zcash mining will exceed 28%.Fortitude's infrastructure push continues Silbert's thesis that Bitcoin has lost its anonymity because of analytics services such as Chainalysis.
Explaining his stance on assets with the potential for exponential growth, the creator of the GBTC Bitcoin trust stated: "Bitcoin is not going to go up 500x unless the US dollar completely collapses. I think Zcash or Bittensor can achieve that type of return. Our portfolio is weighted accordingly."
According to his estimates, up to 10% of Bitcoin liquidity, which is now about $128 billion, will flow into privacy-focused cryptocurrencies.
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Alongside the installation of the equipment, Fortitude is finalizing its merger with publicly traded medical technology company HeartSciences (HSCS). It is an all-stock transaction, and the preliminary proxy statement is already under review by the SEC.
Silbert's plan is pragmatic: close the merger in the second half of 2026, change the ticker to TUDE, and list the first publicly traded institutional Zcash mining platform in history on Nasdaq.
The first summer month was a hot one in several respects for Charles Schwab (SCHW +0.45%). Early in the month, the veteran brokerage and financial services provider reported that an internal trading indicator was doing extremely well, and toward the end, unveiled its latest quarterly earnings report.
The latter wasn't initially well received, but that sentiment turned bullish in the wake of several analyst price target increases. Ultimately, the stock increased in value over the month, with a gain of more than 14%.
Image source: Getty Images.
STAX success Schwab is sufficiently large, well-capitalized, and authoritative to maintain its own stock index that tracks its many clients' trading activity. The monthly Schwab Trading Activity Index (STAX), modestly named after the company, was on fire going into July. It rose to more than 59 in June, setting a new multi-year high and topping May's 55.
If trading is brisk enough to set a new multi-year high, any way we slice it, the company is doing well. Although Schwab no longer charges commissions for buying and selling equities, increased trading activity translates into gains in fundamentals such as margin loan balances.
Sure enough, when Schwab released its second quarter earnings on July 21, it trumpeted new quarterly records for net revenue, net income under generally accepted accounting practices (GAAP), and core net new assets.
That new top-line high was $7.1 billion, up a very sturdy 21% year over year, thanks in no small part to a net interest margin (NIM) that expanded by 35 basis points to an even 3%.
Net income, both GAAP and non-GAAP (adjusted) zoomed 32% higher, with GAAP coming in at $2.80 billion and adjusted landing at $2.93 billion ($1.62 per share). On average, analysts were modeling net revenue of $6.85 billion and adjusted net income of $1.54 per share.
Better, Schwab raised its guidance for full-year revenue growth to 17.5% to 18% (from 14% to 15%).
It felt counterintuitive, then, for the stock to decline in the wake of that impressive quarter. At that point, though, shares of Schwab and other top financial companies were riding fairly high after passing the Federal Reserve's (Fed) annual stress tests in June. Satisfying quarterly results from the big four banks helped too, as did their relatively generous dividend raises.
The run-up in stock prices for many financials raised expectations, and some investors were surely aching for a serious blowout of a second quarter from Schwab.
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Positive pundit pronouncements Before long, they were reminded just how solid Schwab's performance was. Several analysts tracking the stock raised their price targets on the company's equity.
Morgan Stanley, for example, did so twice in July, once before earnings (to $133 per share from $125) and once after (to $136). Probably needless to say, prognosticator Michael Cyprys maintained his overweight (buy) recommendation across both moves.
Those occurred in the closing days of the month, giving Schwab stock enough time to recover from that brief post-earnings sell-off. They also served to -- rightfully, in my opinion -- point out just how effective and prosperous the company is in most aspects of its business.
Booking Holdings (BKNG - Free Report) reported $7.35 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 8.2%. EPS of $2.54 for the same period compares to $2.22 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $7.19 billion, representing a surprise of +2.26%. The company delivered an EPS surprise of +3.67%, with the consensus EPS estimate being $2.45.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Booking Holdings performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Units Sold - Room Nights: 325 million versus the seven-analyst average estimate of 320.52 million.Gross Bookings - Total: $51 billion versus $49.42 billion estimated by seven analysts on average.Units Sold - Airline Tickets: 17 million compared to the 19.22 million average estimate based on six analysts.Units Sold - Rental Car Days: 23 million versus 23.55 million estimated by six analysts on average.Gross Bookings - Agency: $14 billion versus the six-analyst average estimate of $13.46 billion.Gross Bookings - Merchant: $37 billion versus $36.02 billion estimated by six analysts on average.Revenues- Agency: $1.9 billion compared to the $1.91 billion average estimate based on six analysts. The reported number represents a change of -6.9% year over year.Revenues- Advertising and other revenues: $322 million compared to the $312.97 million average estimate based on six analysts. The reported number represents a change of +8.4% year over year.Revenues- Merchant: $5.13 billion versus $4.97 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +15% change.View all Key Company Metrics for Booking Holdings here>>>
Shares of Booking Holdings have returned +6.5% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Sysco přestalo nakupovat ledový salát od Taylor Farms a z Mexika kvůli americké epidemii cyklosporiózy. FDA ji spojila s ledovým salátem podávaným v restauracích Taco Bell.
Item 1 of 2 Taylor Farms products are displayed for sale, amid reports of slumping consumer confidence in lettuce and other fresh produce during the current cyclosporiasis outbreak that has sickened thousands across the U.S., at a grocery store in Washington, D.C., U.S., July 24, 2026. REUTERS/Nathan Howard/File Photo
[1/2]Taylor Farms products are displayed for sale, amid reports of slumping consumer confidence in lettuce and other fresh produce during the current cyclosporiasis outbreak that has sickened thousands... Purchase Licensing Rights, opens new tab Read more
CHICAGO, Aug 4 (Reuters) - Sysco (SYY.N), opens new tab, the biggest U.S. food distributor, has stopped buying iceberg lettuce from Taylor Farms and from Mexico due to the U.S. cyclosporiasis outbreak, CEO Kevin Hourican said on Tuesday.
An investigation by the U.S. Food and Drug Administration has linked the outbreak to iceberg lettuce served at Taco Bell restaurants and sourced from privately held Taylor Farms operations in central Mexico. However, authorities are still looking for other potential sources.
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"We're not buying iceberg lettuce from them, and we're not buying it from Mexico," Hourican said in an interview. "To the degree that we can further diversify our procurement, that is something we're actively working on."
In mid July, Sysco halted sales and distribution of Taylor Farms iceberg lettuce from Mexico. Sysco did a voluntary recall at the time and then Taylor Farms notified the distributor of the official recall, Hourican said.
Last week, former FDA Commissioner Scott Gottlieb said some large retailers and restaurants were shunning produce from other growers in central Mexico out of fear about broader contamination of the region's farms.
"We've changed country and geography of origin, and we're obviously communicating actively with our customers about the state of play here," Hourican said.
Reporting by Tom Polansek; Editing by Lisa Shumaker and Sanjeev Miglani
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Tom has been a journalist for Reuters in Chicago since 2011. He writes primarily about food and agriculture, and has reported on disruptions to global fertilizer and grain supplies from Russia's invasion of Ukraine. He also covers U.S. livestock production and meatpacking companies including Tyson Foods, Smithfield Foods and JBS. Tom was part of a team of reporters that Reuters named as Journalists of the Year in 2016 for coverage of Monsanto. He also won awards from the North American Agricultural Journalists.
Sysco Corporation (SYY) Q4 2026 Earnings Call August 4, 2026 10:00 AM EDT
Company Participants
Kevin Kim - Vice President of Investor Relations
Kevin Hourican - CEO & Chairman
Brandon Sewell - Interim Chief Financial Officer
Conference Call Participants
Kelly Bania - BMO Capital Markets Equity Research
Edward Kelly - Wells Fargo Securities, LLC, Research Division
Lauren Silberman - Deutsche Bank AG, Research Division
John Heinbockel - Guggenheim Securities, LLC, Research Division
John Ivankoe - JPMorgan Chase & Co, Research Division
Mark Carden - UBS Investment Bank, Research Division
Brian Harbour - Morgan Stanley, Research Division
Presentation
Operator
Welcome to Sysco's Fourth Quarter Fiscal Year 2026 Conference Call. We will begin today's presentation with opening remarks and introductions. I would like to turn the call over to Kevin Kim, Vice President of Investor Relations. Please go ahead.
Kevin Kim
Vice President of Investor Relations
Good morning, everyone, and welcome to Sysco's Fourth Quarter Fiscal Year 2026 Earnings Call. On today's call, we have Kevin Hourican, our Chair of the Board and CEO; and Brandon Sewell, our Interim CFO. Before we begin, please note that statements made during this presentation that state the company's or management's intentions, beliefs, expectations or predictions of the future are forward-looking statements within the meaning of the Private Securities Litigation Reform Act, and actual results could differ in a material manner.
Additional information about factors that could cause results to differ from those in the forward-looking statements is contained in the company's SEC filings. This includes, but is not limited to, risk factors contained in our annual report on Form 10-K for the year ended June 28, 2025, subsequent SEC filings and in the news release issued earlier this morning. A copy of these materials can be found in the Investors section at sysco.com.
Non-GAAP financial measures are included in our company's -- in
Calgary, Alberta--(Newsfile Corp. - August 4, 2026) - Suncor Energy's (TSX: SU) (NYSE: SU) Board of Directors has approved a quarterly dividend of $0.60 per share on its common shares, payable September 25, 2026 to shareholders of record at the close of business on September 4, 2026.
Suncor Energy - Canada's leading integrated energy company
Suncor's operations span the full energy value chain, including oil sands mining and in situ operations, upgrading, offshore production, petroleum refining in Canada and the U.S., marketing and trading, and nationwide Petro-Canada™ retail and wholesale networks - delivering reliable energy that fuels economic growth and meets the needs of customers across Canada and globally. With an unwavering focus on safety, operational excellence, and profitability, Suncor is committed to delivering industry-leading performance and long-term shareholder value. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/307976
Suncor Energy ve 2. čtvrtletí zvýšila čistý zisk na 3,732 mld. Cdn$ a upravený peněžní tok z provozu na rekordních 5,329 mld. Cdn$.
Firma zároveň od srpna zvýší měsíční odkupy akcií na 500 mil. Cdn$ z 350 mil. Cdn$.
Unless otherwise noted, all financial figures are unaudited, presented in Canadian dollars (Cdn$), and derived from the company's condensed consolidated financial statements which are based on Canadian generally accepted accounting principles (GAAP), specifically International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), and are prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting. Production volumes are presented on a working-interest basis, before royalties, except for production values from the company's Libya operations, which are presented on an economic basis. Certain financial measures referred to in this news release (adjusted funds from operations, adjusted operating earnings, free funds flow, and net debt) are not prescribed by Canadian generally accepted accounting principles (GAAP). See the Non-GAAP Financial Measures section of this news release. References to Oil Sands operations exclude Suncor Energy Inc.'s ownership of Fort Hills and interest in Syncrude.
Calgary, Alberta--(Newsfile Corp. - August 4, 2026) - Suncor Energy (TSX: SU) (NYSE: SU)
Second Quarter Highlights
Matched quarterly record adjusted funds from operations of $5.3 billion and set all-time quarterly per share record of $4.52.
Generated $4.0 billion in free funds flow and set all-time quarterly per share record of $3.38, more than quadruple the prior year quarter.
Returned nearly $1.8 billion to shareholders, with over $1.0 billion in share repurchases and over $700 million in dividends.
Beginning in August 2026, Suncor plans to increase monthly share repurchases to $500 million from $350 million.
Second quarter upstream production of 761,000 bbls/d, and record first half upgrader utilization of 94%.
Record second quarter refining throughput of 471,000 bbls/d and record second quarter refined product sales of 655,000 bbls/d.
"Suncor delivered record quarterly free funds flow per share of $3.38 in the second quarter, demonstrating the progress we've made in improving the performance of our business and increasing shareholder value," said Rich Kruger, President and Chief Executive Officer. "The quarter was led by the exemplary performance of our downstream business, delivering record quarterly adjusted funds from operations and record second quarter refining throughput and refined product sales, highlighting the strength of our integrated model and its ability to generate significant cash flow across a range of market conditions."
Second Quarter Results
Financial HighlightsQ2Q1Q2($ millions, unless otherwise noted)202620262025Net earnings 3 732 2 100 1 134Per common share(1) (dollars) 3.17 1.77 0.93Adjusted operating earnings(2) 3 804 2 300 873Per common share(1)(2) (dollars) 3.23 1.93 0.71Adjusted funds from operations(2) 5 329 4 030 2 689Per common share(1)(2) (dollars) 4.52 3.39 2.20Cash flow provided by operating activities 5 655 2 435 2 919Per common share(1) (dollars) 4.80 2.05 2.38Capital expenditures excluding capitalized interest 1 310 1 076 1 649Free funds flow(2) 3 980 2 913 981Dividend per common share(1) (dollars) 0.60 0.60 0.57Share repurchases per common share(3) (dollars) 0.89 0.69 0.61Returns to shareholders(4) 1 756 1 537 1 447Operating, selling and general expenses 3 419 3 778 3 163Net debt(2) 4 481 6 842 7 673Operating Highlights
Total upstream production (mbbls/d)760.9875.2808.1Refinery crude oil throughput (mbbls/d)470.6497.8442.3Refinery utilization(5) (%) 92 97 87(1) Presented on a basic per share basis.
(2) Non-GAAP financial measures or contains non-GAAP financial measures. See the Non-GAAP Financial Measures section of this news release.
(3) Calculated as the cost of share repurchases, excluding taxes paid on share repurchases, divided by the weighted average number of shares outstanding.
(4) Includes dividends paid on common shares and repurchases of common shares; excludes taxes paid on common share repurchases.
(5) Effective January 1, 2026, Suncor increased the nameplate capacity of its refining network by 10% from 466,000 bbls/d to 511,000 bbls/d. Prior quarter utilization rates have been restated to reflect this change.
Financial Results
Adjusted Operating Earnings Reconciliation(1)
Q2Q1Q2($ millions)202620262025Net earnings 3 732 2 100 1 134Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt 132 139 (461)Unrealized (gain) loss on risk management activities (131) 92 68One-time legislative change to benefits 63 - -Write-down of equity investments - - 136Income tax expense (recovery) on adjusted operating earnings adjustments 8 (31) (4)Adjusted operating earnings(1) 3 804 2 300 873(1) Non-GAAP financial measure. All reconciling items are presented on a before-tax basis and adjusted for income taxes in the income tax expense (recovery) on adjusted operating earnings adjustments line. See the Non-GAAP Financial Measures section of this news release.
Suncor's adjusted operating earnings increased to $3.804 billion ($3.23 per common share) in the second quarter of 2026, compared to $873 million ($0.71 per common share) in the prior year quarter, primarily due to increased upstream price realizations and downstream margins, partially offset by a corresponding increase in tax and royalties expense.
Net earnings increased to $3.732 billion ($3.17 per common share) in the second quarter of 2026, compared to $1.134 billion ($0.93 per common share) in the prior year quarter. In addition to the factors impacting adjusted operating earnings, net earnings for the second quarter of 2026 and the prior year quarter were impacted by the items shown in the table above.
Adjusted funds from operations increased to $5.329 billion ($4.52 per common share) in the second quarter of 2026, compared to $2.689 billion ($2.20 per common share) in the prior year quarter, and were primarily influenced by the same factors impacting adjusted operating earnings. Adjusted funds from operations benefitted from the strength of Suncor's integrated operations in the current quarter, as the upstream captured the strong synthetic crude oil (SCO) premiums, while the downstream generated record adjusted funds from operations, despite the higher feedstock costs.
Cash flow provided by operating activities, which includes changes in non-cash working capital, was $5.655 billion ($4.80 per common share) in the second quarter of 2026, compared to $2.919 billion ($2.38 per common share) in the prior year quarter.
Free funds flow increased to $3.980 billion ($3.38 per common share), compared to $981 million ($0.80 per common share) in the prior year quarter, and was primarily influenced by the same factors impacting adjusted funds from operations as well as lower capital expenditures in the current quarter compared to the prior year quarter.
Operating, selling and general (OS&G) expenses were $3.419 billion in the second quarter of 2026, compared to $3.163 billion in the prior year quarter, with the increase primarily due to increased mining activity, in part due to the unprecedented combination of snow accumulation, rapid spring melt and major rainfall events in the current quarter and increased Oil Sands maintenance.
Total Oil Sands bitumen production 815.2 933.9 860.8SCO and diesel production 510.0 550.8 468.0Inter-asset transfers and consumption (27.8) (31.5) (29.8)Upgraded production - net SCO and diesel 482.2 519.3 438.2Bitumen production 273.9 364.7 334.8Inter-asset transfers (66.0) (85.2) (24.6)Non-upgraded bitumen production 207.9 279.5 310.2Total Oil Sands production 690.1 798.8 748.4Exploration and Production 70.8 76.4 59.7Total upstream production 760.9 875.2 808.1Upstream sales 782.1 872.1 812.8
Downstream
Refinery utilization(1) (%) 92 97 87Refinery crude oil throughput 470.6 497.8 442.3Refined product sales 654.8 680.9 600.5Total Oil Sands bitumen production was 815,200 barrels per day (bbls/d) in the second quarter of 2026, compared to 860,800 bbls/d in the prior year quarter, with the decrease primarily due to the planned turnaround at Firebag, which was successfully completed ahead of schedule in the current quarter, partially offset by increased mining production despite an unprecedented combination of snow accumulation, rapid spring melt, and major rainfall events. Mining production in the prior year quarter was impacted by the Upgrader 1 coke drum replacement project and turnaround.
The company's higher value net SCO production increased to 482,200 bbls/d with upgrader utilization of 93% in the second quarter of 2026, compared to 438,200 bbls/d and 86%, respectively, in the prior year quarter, primarily due to fewer maintenance activities in the current quarter.
Non-upgraded bitumen production decreased to 207,900 bbls/d in the second quarter of 2026, compared to 310,200 bbls/d in the prior year quarter, primarily due to increased upgrader availability and decreased bitumen production.
Exploration and Production (E&P) production increased to 70,800 bbls/d in the second quarter of 2026, compared to 59,700 bbls/d in the prior year quarter, and featured strong production at all assets.
Refinery crude oil throughput increased to a second quarter record of 470,600 bbls/d with refinery utilization([1]) of 92% of the rerated nameplate capacity of 511,000 bbls/d. This compares to 442,300 bbls/d and 87% in the prior year quarter, primarily due to fewer maintenance activities in the current period. Refinery production increased to 503,400 bbls/d, compared to 464,600 bbls/d in the prior year quarter, as the company benefitted from a structural increase of intermediate feedstock through the secondary units.
Refined product sales increased to a second quarter record of 654,800 bbls/d, compared to 600,500 bbls/d in the prior year quarter, as Suncor continued to capitalize on global market opportunities, including record jet fuel sales, while also delivering more domestic volumes through high-value retail channels, leveraging Canada's number one retail brand.
(1) Effective January 1, 2026, Suncor increased the nameplate capacity of its refining network by 10% from 466,000 bbls/d to 511,000 bbls/d. Prior quarter utilization rates have been restated to reflect this change.
Corporate and Strategy Updates
Share repurchases to be increased to $500 million per month. Beginning in August 2026, Suncor plans to increase monthly share repurchases to $500 million per month, from $350 million per month, projecting total 2026 share repurchases of $4.7 billion and marking the third monthly increase since December 2025.
New loyalty program partnership announced. Petro-Canada and WestJet announced the details of a new loyalty program partnership that is expected to give Petro-Canada customers more value, options and flexibility when fuelling and flying.
Corporate Guidance Updates
Suncor has updated its 2026 corporate guidance ranges, previously released on December 11, 2025:
Business Environment, Current Income Tax Expense and Royalties have been updated to reflect the current business environment as at August 4, 2026.For further details and advisories regarding Suncor's 2026 corporate guidance, see www.suncor.com/guidance.
Non-GAAP Financial Measures
Certain financial measures in this news release - namely adjusted funds from operations, adjusted operating earnings, free funds flow, net debt, and related per share or per barrel amounts - are not prescribed by GAAP. These non-GAAP financial measures are included because management uses the information to analyze business performance, leverage and liquidity, as applicable, and it may be useful to investors on the same basis. These non-GAAP financial measures do not have any standardized meaning and, therefore, are unlikely to be comparable to similar measures presented by other companies. Therefore, these non-GAAP financial measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Except as otherwise indicated, these non-GAAP financial measures are calculated and disclosed on a consistent basis from period to period. Specific adjusting items may only be relevant in certain periods.
Adjusted Operating Earnings
Adjusted operating earnings is a non-GAAP financial measure that adjusts net earnings for significant items that are not indicative of operating performance. Management uses adjusted operating earnings to evaluate operating performance because management believes it provides better comparability between periods. Adjusted operating earnings are reconciled to net earnings in the news release above.
Adjusted Funds From (Used In) Operations
Adjusted funds from (used in) operations is a non-GAAP financial measure that adjusts a GAAP measure – cash flow provided by operating activities – for changes in non-cash working capital, which management uses to analyze operating performance and liquidity. Changes to non-cash working capital can be impacted by, among other factors, commodity price volatility, the timing of offshore feedstock purchases and payments for commodity and income taxes, the timing of cash flows related to accounts receivable and accounts payable, and changes in inventory, which management believes reduces comparability between periods.
Three months ended June 30Oil SandsExploration and
ProductionRefining and
MarketingCorporate and
EliminationsIncome TaxesTotal($ millions)202620252026202520262025202620252026202520262025Earnings (loss) before income taxes 2 691 844 465 165 2 100 377 (277) 48 - - 4 979 1 434Adjustments for:
Depreciation, depletion and amortization 1 241 1 248 167 167 275 260 31 34 - - 1 714 1 709Accretion 129 124 20 16 4 4 - - - - 153 144Unrealized foreign exchange loss (gain) on U.S. dollar denominated debt - - - - - - 132 (461) - - 132 (461)Change in fair value of financial instruments and trading inventory (173) 215 12 34 (70) (62) - - - - (231) 187Loss (gain) on disposal of assets 5 - - - (2) - (3) - - - - -Share-based compensation (8) 7 (1) 1 (4) 4 (47) (6) - - (60) 6Settlement of decommissioning and
restoration liabilities (108) (86) (11) (11) (13) (15) - - - - (132) (112)Other 42 47 - - 9 47 41 100 - - 92 194Current income tax expense - - - - - - - - (1 318) (412) (1 318) (412)Adjusted funds from (used in) operations 3 819 2 399 652 372 2 299 615 (123) (285) (1 318) (412) 5 329 2 689Change in non-cash working capital
326 230Cash flow provided by operating activities
5 655 2 919Six months ended June 30Oil SandsExploration and
ProductionRefining and
MarketingCorporate and
EliminationsIncome TaxesTotal($ millions)202620252026202520262025202620252026202520262025Earnings (loss) before income taxes 4 207 2 519 847 323 3 750 1 049 (999) (167) - - 7 805 3 724Adjustments for:
(1 269) (659)Cash flow provided by operating activities
8 090 5 075Free Funds Flow (Deficit)
Free funds flow (deficit) is a non-GAAP financial measure that is calculated by taking adjusted funds from operations and subtracting capital expenditures, including capitalized interest. Free funds flow reflects cash available for increasing distributions to shareholders and reducing debt. Management uses free funds flow to measure the capacity of the company to increase returns to shareholders and to grow Suncor's business.
Net debt and total debt are non-GAAP financial measures that management uses to analyze the financial condition of the company. Total debt includes short-term debt, current portion of long-term debt and long-term debt (all of which are GAAP measures). Net debt is equal to total debt less cash and cash equivalents (a GAAP measure).
June 30December 31($ millions, except as noted)20262025Short-term debt - -Current portion of long-term debt 656 973Long-term debt 9 197 9 014Total debt 9 853 9 987Less: Cash and cash equivalents 5 372 3 650Net debt 4 481 6 337Shareholders' equity 48 163 45 124Total debt plus shareholders' equity 58 016 55 111Total debt to total debt plus shareholders' equity (%) 17.0 18.1Net debt to net debt plus shareholders' equity (%) 8.5 12.3Legal Advisory – Forward-Looking Information
This news release contains certain forward-looking information and forward-looking statements (collectively referred to herein as "forward-looking statements") and other information based on Suncor's current expectations, estimates, projections and assumptions that were made by the company in light of information available at the time the statement was made and consider Suncor's experience and its perception of historical trends, including expectations and assumptions concerning: the accuracy of reserves estimates; commodity prices and interest and foreign exchange rates; the performance of assets and equipment; uncertainty related to geopolitical conflict; capital efficiencies and cost savings; applicable laws and government policies; future production rates; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour, services and infrastructure; the satisfaction by third parties of their obligations to Suncor; the development and execution of projects; and the receipt, in a timely manner, of regulatory and third-party approvals. All statements and information that address expectations or projections about the future, and other statements and information about Suncor's strategy for growth, expected and future expenditures or investment decisions, commodity prices, costs, schedules, production volumes, operating and financial results, future financing and capital activities, and the expected impact of future commitments are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects", "anticipates", "will", "estimates", "plans", "scheduled", "intends", "believes", "projects", "indicates", "could", "focus", "vision", "goal", "outlook", "proposed", "target", "objective", "continue", "should", "may", "future", "potential", "opportunity", "would", "priority", "strategy" and similar expressions. Forward-looking statements in this news release include references to: Suncor's strategy, focus, goals and priorities and the expected benefits therefrom; Suncor's belief that Petro-Canada's new loyalty program partnership with WestJet will give Petro-Canada customers more value, options and flexibility when fueling and flying; and Suncor's projection of $4.7 billion of share repurchases in 2026. In addition, all other statements and information about Suncor's strategy for growth, expected and future expenditures or investment decisions, commodity prices, costs, schedules, production volumes, operating and financial results and the expected impact of future commitments are forward-looking statements. Some of the forward-looking statements and information may be identified by words like "expects", "anticipates", "will", "estimates", "plans", "scheduled", "intends", "believes", "projects", "indicates", "could", "focus", "vision", "goal", "outlook", "proposed", "target", "objective", "continue", "should", "may" and similar expressions.
Forward-looking statements and information are not guarantees of future performance and involve a number of risks and uncertainties, some that are similar to other oil and gas companies and some that are unique to Suncor. Suncor's actual results may differ materially from those expressed or implied by its forward-looking statements, so readers are cautioned not to place undue reliance on them.
Suncor's Annual Information Form and Annual Report to Shareholders, each dated February 25, 2026, Form 40-F, Suncor's Report to Shareholders for the Second Quarter of 2026 dated August 4, 2026, and other documents it files from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results and such factors are incorporated herein by reference. Copies of these documents are available by referring to suncor.com/FinancialReports or on SEDAR+ at sedarplus.ca or EDGAR at sec.gov. Except as required by applicable securities laws, Suncor disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
To view a full copy of Suncor's second quarter 2026 Report to Shareholders and the financial statements and notes (unaudited), visit Suncor's profile on sedarplus.ca or sec.gov or visit Suncor's website at suncor.com/financialreports.
To listen to the conference call discussing Suncor's second quarter results, visit suncor.com/webcasts. The event will be archived for 90 days.
Suncor Energy - Canada's leading integrated energy company
Suncor's operations span the full energy value chain, including oil sands mining and in situ operations, upgrading, offshore production, petroleum refining in Canada and the U.S., marketing and trading, and nationwide Petro-Canada™ retail and wholesale networks – delivering reliable energy that fuels economic growth and meets the needs of customers across Canada and globally. With an unwavering focus on safety, operational excellence, and profitability, Suncor is committed to delivering industry-leading performance and long-term shareholder value. Suncor's common shares (symbol: SU) are listed on the Toronto and New York stock exchanges.
For more information, visit suncor.com or find us on LinkedIn, Instagram and Facebook.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/307978
Source: Suncor Energy Inc.
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August 04, 2026 16:05 ET | Source: Devon Energy Corporation
HOUSTON, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Devon Energy Corp. (NYSE: DVN) today reported financial and operational results for the second-quarter 2026. The company also provided a third-quarter 2026 outlook. Devon’s earnings release, supplemental financial tables, guidance and related earnings presentation can be accessed via the Investor Relations section of Devon’s website, www.devonenergy.com.
The company’s second-quarter conference call will be held at 10:00 a.m. Central time (11:00 a.m. Eastern time) on Wednesday, August 5, 2026, and will serve primarily as a forum for analyst and investor questions and answers.
ABOUT DEVON ENERGY
Devon Energy is a leading oil and gas producer in the U.S. with a diversified multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations. For more information, please visit www.devonenergy.com.
Lucid zahájil operační reset a oznámil plán na zlepšení cash flow o 1,4 mld. USD v roce 2026. Ve 2. čtvrtletí 2026 vyrobil 4 774 vozů a utržil 405 mil. USD.
Transformation program launched, starting with a focus on Back-to-Basics
Identified $1.4 billion cash flow improvement opportunities in 2026 across operating expenses, capital expenditures, and working capital Launched plan to refocus on three key areas: Cash & Cost, Customer & Quality, Culture & Team Four strategic projects earmarked as top priorities for resource allocation and capital deployment New simplified organizational structure aligned with priorities, halving CEO reports and enforcing accountability Q2 Results
Produced 4,774 vehicles, up 24% year over year, with production intentionally reduced to lower inventory and free up cash Delivered 3,953 vehicles, up 19% year over year Generated second quarter revenue of $405 million, up 56% year over year Ended the quarter with $3.0 billion in total liquidity Recently secured financing, combined with ongoing operational measures, provide sufficient liquidity runway well into 2027 Operational Highlights
Robotaxi program began deliveries of Lucid Gravity Production-Validation vehicles, with testing underway by Uber and Nuro across the San Francisco Bay Area and Houston AMP-2 manufacturing facility in Saudi Arabia has transitioned from construction to industrialization, with installation and tuning of manufacturing ongoing Midsize program development continues, with prototype vehicles and Atlas drive units progressing through validation and production readiness activities , /PRNewswire/ -- Lucid Group, Inc. (NASDAQ: LCID), maker of the world's most advanced software-defined vehicles and technologies, today announced financial results for its second quarter ended June 30, 2026, and outlined a comprehensive operational reset focused on strengthening execution, reducing cash burn and improving the customer experience.
"Lucid has leading technology, compelling products and deeply committed people, but potential is not performance," said Silvio Napoli, CEO of Lucid. "We are going back to basics, with a clear focus on cash, customers, and culture. We are focused on delivering on our four must win priorities, including our $1.4 billion cash flow improvement plan and the advancement of our Robotaxi, AMP-2, and Midsize programs, which will establish a strong foundation for Lucid's next chapter."
"Silvio and his leadership team are transforming the company, and the Board stands firmly behind their actions," said Turqi Alnowaiser, Chairman of Lucid. "The actions underway are intended to strengthen the company's execution, improve the customer experience, and translate Lucid's technology and product leadership into long-term value for customers and shareholders."
Three Priorities Guiding Lucid's Operational Reset
Lucid is refocusing the organization around three priorities designed to improve execution and strengthen the business.
Cash and Cost. Lucid is applying greater discipline to spending, investment decisions and capital allocation, while protecting the technologies and programs most important to its long-term competitiveness.
The company has deliberately reduced production to better align output with anticipated demand, convert inventory into deliveries and cash, and improve working capital.
Customer and Quality. Lucid is strengthening the ownership experience to match the performance of its vehicles, with a focus on product readiness, delivery experience, service responsiveness and parts availability as we invest in technicians and dedicated staff to reduce wait times by one third this year.
Culture and Team. Lucid is simplifying the organization, reducing layers and clarifying accountability to accelerate decisions and build a culture of ownership, performance and consistent execution.
The new structure halves the number of direct reports to the CEO and places experienced leaders in key roles across finance, technology, customer experience, transformation, digital and program execution. These changes are intended to accelerate decision-making, clarify ownership and build a performance-driven culture.
Four Strategic Projects
Lucid has identified four must-win projects.
$1.4 billion cash savings plan. Lucid has identified $1.4 billion in cash reductions in 2026, including projected savings of approximately $600 million to $800 million in inventory, approximately $500 million in capital expenditures, and approximately $200 million in operating expenses. The operating expense actions include projected savings from the U.S. workforce reduction announced in June, expected to provide approximately $158 million in annualized savings. This represents the initial output of the company's broader business review underway.
Robotaxi. The company's robotaxi program with Uber and Nuro is a top priority and an important opportunity to extend Lucid's technology beyond privately owned vehicles. The program is in active testing and validation, supported by a fleet of nearly 100 vehicles across the San Francisco Bay Area and Houston. The company has begun delivering production-validation Lucid Gravity vehicles to Nuro. Moving forward, this project will be part of Lucid Technologies, a dedicated business unit bringing together AI, advanced driver-assistance, and digital capabilities.
AMP-2. Lucid's factory in Saudi Arabia is transitioning from construction to industrialization. Manufacturing systems across stamping, body, paint and final assembly are being installed and commissioned in preparation for production trials.
Midsize. Continued progress on the Midsize program, with Atlas drive units and prototype vehicles advancing through validation, durability testing, crash certification, battery-pack manufacturing validation, and cold-weather testing in New Zealand.
Second Quarter 2026 Performance
Lucid produced 4,774 vehicles and delivered 3,953 vehicles during the second quarter. The company moderated production to better align output with anticipated deliveries, reduce inventory and preserve cash.
Lucid reported second quarter revenue of $405 million and ended the quarter with $3.0 billion in total liquidity. Recently secured financing, in conjunction with operational actions the company is taking, is expected to provide sufficient liquidity runway well into 2027.
Conference Call Information
Lucid will host a conference call to discuss its second quarter 2026 financial results on Tuesday, August 4, 2026, at 2:30 pm PT / 5:30 pm ET. The live webcast of the conference call will be available on the Investor Relations website at ir.lucidmotors.com. Following the completion of the call, a replay will be available on the same website. Lucid uses its ir.lucidmotors.com website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
About Lucid Group
Lucid Group, Inc. (NASDAQ: LCID) is a technology company creating exceptional mobility experiences through innovation to drive the world forward. Built on Lucid's proprietary technology and software defined vehicle architectures, the company's lineup of award-winning vehicles brings Lucid's "Compromise Nothing™" approach to premium segments of the global automotive market. Lucid designs and engineers its products in-house and assembles at its vertically integrated facilities in Arizona and Saudi Arabia, enabling continuous innovation across vehicles, software, and advanced driver assistance and autonomy-ready capabilities.
Investor Relations Contact
[email protected]
Media Contact
[email protected]
Trademarks
This communication contains trademarks, service marks, trade names and copyrights of Lucid Group, Inc. and its subsidiaries and other companies, which are the property of their respective owners.
Forward-Looking Statements
This communication includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "shall," "expect," "anticipate," "believe," "seek," "target," "continue," "could," "may," "might," "possible," "potential," "predict," "scheduled," "aiming," "targeting," "objective," "focus," "strategic" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding results of operations, financial outlook and condition, guidance, liquidity, capital expenditures, its cash flow improvement plan, the expected savings from eliminating the second shift at AMP-1, prospects, growth, production volumes, strategies, management, and the markets in which Lucid operates, including expectations of financial and operational metrics, projections of market opportunity, market share and product sales, plans and expectations related to commercial product launches and future programs, initiatives and products, including the Midsize program, plans and expectations on vehicle production and delivery timing and volumes, expectations regarding market opportunities and demand for Lucid's products, the range, features, specifications, performance, production and delivery of Lucid's vehicles and potential impact on markets, plans and expectations regarding further monetization opportunities, plans and expectations regarding Lucid's software, technology features and capabilities, including with respect to battery and powertrain systems, plans and expectations regarding Lucid's systems approach to the design of the vehicles, estimate of Lucid's technology lead over competitors, estimate of the length of time Lucid's existing cash, cash equivalents and investments will be sufficient to fund planned operations, plans and expectations regarding Lucid's liquidity runway and cash flow improvement plans, future capital raises and funding strategy, plans and expectations regarding future manufacturing capabilities and facilities, logistics and supply chain, studio and service center openings, sales channels and strategies, test drive, appointment wait times, ability to mitigate supply chain and logistics risks, plans and expectations regarding expansion and construction of Lucid's AMP-1 and AMP-2 manufacturing facilities and capabilities, including potential benefits, ability to vertically integrate production processes, future market launches and international expansion, Lucid's ability to grow its brand awareness, expectations regarding executive leadership transitions, the potential success of Lucid's distribution strategy and future vehicle programs, changes to future or existing vehicle programs, the company's plans regarding increasing the number of technicians and concierges, potential automotive and strategic partnerships and their anticipated benefits, plans and expectations regarding Lucid's ADAS/AV roadmap and robotaxi program, expectations on the technology licensing landscape, expectations on the regulatory and political environment, and the promise of Lucid's technology. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of Lucid's management. These forward-looking statements are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and may differ from these forward-looking statements. Many actual events and circumstances are beyond the control of Lucid. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, economic, market, financial, political, regulatory and legal conditions, including uncertainties and changes in policies, imposition or proposed imposition of tariffs, export controls, threat of a trade war, the risk of a global economic recession or other downturn, bank closures and liquidity concerns at financial institutions, and global or regional conflicts or other geopolitical events, including the military operations in the Gulf region and the Middle East, and the potential escalation and the broadening of the conflict in Iran; the outcome of Lucid's broader business review, which remains underway; risks related to changes in overall demand for Lucid's products and services and cancellation of orders for Lucid's vehicles; risks related to prices and availability of commodities and components, including rare earth minerals, semiconductors and their related products, Lucid's supply chain, logistics, inventory management and quality control, and Lucid's ability to complete the tooling of its manufacturing facilities over time and scale production of Lucid's vehicles; risks related to the uncertainty of Lucid's projected financial and operational information; risks related to the timing of expected business milestones and commercial product launches; risks related to the construction and expansion of Lucid's manufacturing facilities and the increase of Lucid's production capacity; Lucid's ability to manage expenses and control costs; risks related to future market adoption of Lucid's offerings; the quality, reliability, and performance of Lucid's vehicles and services; the effects of competition and the pace and depth of electric vehicle adoption generally on Lucid's business; changes in regulatory requirements, policies, and governmental incentives; changes in fuel and energy prices; Lucid's ability to rapidly innovate; Lucid's ability to enter into or maintain partnerships with original equipment manufacturers, vendors and technology providers, including its ability to realize the anticipated benefits of its partnerships with Aston Martin, Uber, Nuro and NVIDIA; Lucid's ability to effectively recruit, integrate, motivate, and retain key employees, including recent changes to our executive team; risks related to potential vehicle recalls; Lucid's ability to establish and expand its brand, and capture additional market share, and the risks associated with negative press or reputational harm; the risk that Lucid's cash flow improvement plan does not achieve the anticipated effect, or results in unexpected quality issues or delays; risks related to Lucid's outstanding redeemable convertible preferred stock and convertible senior notes; availability, reduction or elimination of, and Lucid's ability to obtain and effectively utilize, zero emission vehicle credits, tax incentives, and other governmental and regulatory programs and incentives; Lucid's ability to conduct equity, equity-linked or debt financing in the future; Lucid's ability to pay interest and principal on its indebtedness; future changes to vehicle specifications which may impact performance, features, pricing and other expectations; the outcome of any potential litigation, government and regulatory proceedings, investigations and inquiries; and those factors discussed under the cautionary language and the Risk Factors in Lucid's Annual Report on Form 10-K for the year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other documents Lucid has filed or will file with the Securities and Exchange Commission. If any of these risks or uncertainties materialize, or Lucid's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Lucid currently does not know or that Lucid currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Lucid's expectations, plans or forecasts of future events and views as of the date of this communication. Lucid anticipates that subsequent events and developments will cause Lucid's assessments to change. However, while Lucid may elect to update these forward-looking statements at some point in the future, Lucid specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Lucid's assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Non-GAAP Financial Measures and Key Business Metrics
Condensed consolidated financial information has been presented in accordance with US GAAP ("GAAP") as well as on a non-GAAP basis to supplement Lucid's condensed consolidated financial results. Lucid's non-GAAP financial measures include Adjusted EBITDA, adjusted net loss attributable to common stockholders (diluted), adjusted net loss per share attributable to common stockholders (diluted), and free cash flow, which are discussed below.
Adjusted EBITDA is defined as net loss attributable to common stockholders (basic) before (1) interest expense, (2) interest income, (3) provision for (benefit from) income taxes, (4) depreciation and amortization, (5) stock-based compensation, (6) workforce reduction charges, (7) change in fair value of common stock warrant liability, (8) change in fair value of equity securities of a related party, (9) change in fair value of derivative liabilities and subscription agreements associated with redeemable convertible preferred stock (related party), (10) accretion of redeemable convertible preferred stock (related party), and (11) gain on extinguishment of debt. Lucid believes that Adjusted EBITDA provides useful information to Lucid's management and investors about Lucid's financial performance.
Adjusted net loss attributable to common stockholders (diluted) is defined as net loss attributable to common stockholders (diluted) excluding (1) stock-based compensation, (2) workforce reduction charges, (3) change in fair value of common stock warrant liability, (4) change in fair value of equity securities of a related party, (5) change in fair value of derivative liabilities and subscription agreements associated with redeemable convertible preferred stock (related party), and (6) accretion of redeemable convertible preferred stock (related party).
Lucid defines and calculates adjusted net loss per share attributable to common stockholders (diluted) as adjusted net loss attributable to common stockholders (diluted) divided by weighted-average shares outstanding attributable to common stockholders (diluted).
Lucid believes that adjusted net loss attributable to common stockholders (diluted) and adjusted net loss per share attributable to common stockholders (diluted) financial measures provide investors with useful information to evaluate the performance of its business excluding items not reflecting ongoing operating activities.
Free cash flow is defined as net cash used in operating activities less capital expenditures. Lucid believes that free cash flow provides useful information to Lucid's management and investors about the amount of cash generated by the business after necessary capital expenditures.
These non-GAAP financial measures facilitate management's internal comparisons to Lucid's historical performance. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting, and financial planning purposes. Management also believes that presentation of the non-GAAP financial measures provides useful information to Lucid's investors regarding measures of its financial condition and results of operations that Lucid uses to run the business and therefore allows investors to better understand Lucid's performance. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of Lucid's results as reported under GAAP.
Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under GAAP when understanding Lucid's operating performance. In addition, other companies, including companies in Lucid's industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of Lucid's non-GAAP financial measures and key performance measures as tools for comparison. A reconciliation between GAAP and non-GAAP financial information is presented below.
LUCID GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share data)
June 30,
2026
December 31,
2025
ASSETS
Current assets:
Cash and cash equivalents
$ 732,601
$ 997,827
Short-term investments (including nil and $50,000 associated with a related party as of June 30, 2026 and December 31, 2025, respectively)
28,712
631,093
Accounts receivable, net (including $186,581 and $120,540 from a related party as of June 30, 2026 and December 31, 2025, respectively)
223,050
177,162
Inventory
1,378,653
1,109,529
Prepaid expenses
72,458
59,606
Other current assets
341,067
324,434
Total current assets
2,776,541
3,299,651
Property, plant and equipment, net
4,222,841
3,978,132
Right-of-use assets
249,019
241,974
Long-term investments (including $14,191 and $24,259 associated with a related party as of June 30, 2026 and December 31, 2025, respectively)
14,191
512,241
Other noncurrent assets
436,234
354,983
TOTAL ASSETS
$ 7,698,826
$ 8,386,981
LIABILITIES
Current liabilities:
Accounts payable
$ 366,907
$ 487,521
Finance lease liabilities, current portion
5,045
84,222
Current portion of debt ($503,088 and $467,963 associated with a related party as of June 30, 2026 and December 31, 2025, respectively)
707,142
671,746
Other current liabilities (including $73,134 and $81,580 associated with a related party as of June 30, 2026 and December 31, 2025, respectively)
1,359,101
1,392,641
Total current liabilities
2,438,195
2,636,130
Finance lease liabilities, net of current portion
102,685
104,559
Debt, net of current portion (including $497,426 and nil associated with a related party as of June 30, 2026 and December 31, 2025, respectively)
2,546,556
2,046,576
Other long-term liabilities (including $123,504 and $123,198 associated with related parties as of June 30, 2026 and December 31, 2025, respectively)
599,441
582,739
Derivative liabilities associated with redeemable convertible preferred stock (related party)
163,655
16,200
Total liabilities
5,850,532
5,386,204
REDEEMABLE CONVERTIBLE PREFERRED STOCK
Preferred stock 10,000,000 shares authorized as of June 30, 2026 and December 31, 2025, Series A redeemable convertible preferred stock, par value $0.0001; 100,000 shares issued and outstanding as of June 30, 2026 and December 31, 2025; liquidation preference of $1,470,165 and $1,350,441 as of June 30, 2026 and December 31, 2025, respectively (related party)
1,469,464
1,339,641
Preferred stock 10,000,000 shares authorized as of June 30, 2026 and December 31, 2025, Series B redeemable convertible preferred stock, par value $0.0001; 75,000 shares issued and outstanding as of June 30, 2026 and December 31, 2025; liquidation preference of $1,032,889 and $949,249 as of June 30, 2026 and December 31, 2025, respectively (related party)
1,032,514
943,849
Preferred stock 10,000,000 shares authorized as of June 30, 2026 and December 31, 2025, Series C redeemable convertible preferred stock, par value $0.0001; 55,000 and 0 shares issued and outstanding as of June 30, 2026 and December 31, 2025; liquidation preference of $566,859 and nil as of June 30, 2026 and December 31, 2025, respectively (related party)
404,279
—
Total redeemable convertible preferred stock
2,906,257
2,283,490
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, par value $0.0001; 1,500,000,000 shares authorized as of June 30, 2026 and December 31, 2025; 394,155,958 and 327,451,844 shares issued and 394,070,176 and 327,366,062 shares outstanding as of June 30, 2026 and December 31, 2025, respectively
39
33
Additional paid-in capital
16,636,039
16,337,023
Treasury stock, at cost, 85,782 shares at June 30, 2026 and December 31, 2025
(20,716)
(20,716)
Accumulated other comprehensive income
615
11,692
Accumulated deficit
(17,673,940)
(15,610,745)
Total stockholders' equity (deficit)
(1,057,963)
717,287
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT)
$ 7,698,826
$ 8,386,981
LUCID GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(in thousands, except share and per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Revenue (including $96,188 and $30,247 from a related party for the three months ended June 30, 2026 and 2025, and $134,558 and $35,343 for the six months ended June 30, 2026 and 2025, respectively)
$ 405,347
$ 259,432
$ 687,812
$ 494,480
Costs and expenses
Cost of revenue
832,072
531,783
1,426,242
995,343
Research and development
321,336
273,839
657,006
525,085
Selling, general and administrative
300,432
256,857
604,608
469,032
Workforce reduction charges
33,675
—
71,609
—
Total cost and expenses
1,487,515
1,062,479
2,759,465
1,989,460
Loss from operations
(1,082,168)
(803,047)
(2,071,653)
(1,494,980)
Other income (expense), net
Change in fair value of common stock warrant liability
—
5,322
—
18,183
Change in fair value of equity securities of a related party
549
3,948
(9,672)
(9,505)
Change in fair value of derivative liabilities and subscription agreements associated with redeemable convertible preferred stock (related party)
102,790
111,475
110,165
393,175
Gain on extinguishment of debt
—
116,360
—
116,360
Interest income
9,634
44,318
22,738
96,527
Interest expense (including $23,363 and $4,912 to a related party for the three months ended June 30, 2026 and 2025, and $34,672 and $8,612 for the six months ended June 30, 2026 and 2025, respectively)
(47,817)
(23,749)
(88,890)
(35,632)
Other income (expense), net
(16,789)
3,572
(24,656)
6,537
Total other income, net
48,367
261,246
9,685
585,645
Loss before provision for (benefit from) income taxes
(1,033,801)
(541,801)
(2,061,968)
(909,335)
Provision for (benefit from) income taxes
1,050
(2,369)
1,227
(3,732)
Net loss
(1,034,851)
(539,432)
(2,063,195)
(905,603)
Accretion of redeemable convertible preferred stock (related party)
(224,425)
(199,823)
(330,387)
(564,748)
Net loss attributable to common stockholders, basic
(1,259,276)
(739,255)
(2,393,582)
(1,470,351)
Interest expense on 2026 Notes
—
309
—
4,283
Gain on extinguishment of debt
—
(116,360)
—
(116,360)
Net loss attributable to common stockholders, diluted
$ (1,259,276)
$ (855,306)
$ (2,393,582)
$ (1,582,428)
Weighted-average shares outstanding attributable to common stockholders(1)
Basic
382,098,609
305,640,483
$ 355,340,787
$ 304,641,184
Diluted
382,098,609
305,788,272
$ 355,340,787
$ 305,670,808
Net loss per share attributable to common stockholders(1)
Basic
$ (3.30)
$ (2.42)
$ (6.74)
$ (4.83)
Diluted
$ (3.30)
$ (2.80)
$ (6.74)
$ (5.18)
Other comprehensive income (loss)
Net unrealized gains (losses) on investments, net of tax
$ (152)
$ 293
$ (1,537)
$ 3,845
Reclassification adjustment for realized gains on investments included in net loss
—
—
(5,702)
—
Foreign currency translation adjustments
(2,746)
8,973
(3,838)
12,870
Total other comprehensive income (loss)
(2,898)
9,266
(11,077)
16,715
Comprehensive loss
(1,037,749)
(530,166)
(2,074,272)
(888,888)
Accretion of redeemable convertible preferred stock (related party)
(224,425)
(199,823)
(330,387)
(564,748)
Comprehensive loss attributable to common stockholders
$ (1,262,174)
$ (729,989)
$ (2,404,659)
$ (1,453,636)
(1) The weighted-average shares outstanding attributable to common stockholders and net loss per share attributable to common stockholders have been adjusted for the prior periods presented to reflect the one-for-ten (1:10) reverse stock split effected on August 29, 2025.
LUCID GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Cash flows from operating activities:
Net loss
$ (1,034,851)
$ (539,432)
$ (2,063,195)
$ (905,603)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
122,222
111,088
238,634
209,047
Amortization of insurance premium
9,991
8,571
19,287
17,485
Non-cash operating lease cost
18,035
11,207
33,197
19,758
Stock-based compensation
46,609
56,319
107,639
83,834
Inventory and firm purchase commitments write-downs
299,271
179,888
527,588
327,806
Change in fair value of common stock warrant liability
—
(5,322)
—
(18,183)
Change in fair value of equity securities of a related party
(549)
(3,948)
9,672
9,505
Change in fair value of derivative liabilities and subscription agreements associated with redeemable convertible preferred stock (related party)
(102,790)
(111,475)
(110,165)
(393,175)
Net accretion of investment discounts/premiums
(149)
(5,582)
(1,090)
(19,062)
Gain on extinguishment of debt
—
(116,360)
—
(116,360)
Other non-cash items
4,945
6,582
2,140
9,300
Changes in operating assets and liabilities:
Accounts receivable (including $(91,303) and $(9,715) from a related party for the three months ended June 30, 2026 and 2025, and $(66,041) and $(5,599) for the six months ended June 30, 2026 and 2025, respectively)
(93,104)
(35,041)
(48,269)
(13,260)
Inventory
(269,157)
(379,573)
(845,554)
(586,043)
Prepaid expenses
(18,573)
(20,254)
(30,672)
(27,677)
Other assets
45,155
(55,212)
(82,290)
(55,824)
Accounts payable
(127,253)
58,890
(138,365)
58,513
Other liabilities
(122,033)
9,413
(26,447)
141,085
Net cash used in operating activities
(1,222,231)
(830,241)
(2,407,890)
(1,258,854)
Cash flows from investing activities:
Purchases of property, plant and equipment (including $(70,221) and $(25,675) from a related party for the three months ended June 30, 2026 and 2025, and $(117,355) and $(67,668) for the six months ended June 30, 2026 and 2025, respectively)
(253,827)
(182,663)
(506,994)
(343,904)
Proceeds from maturities of investments (including nil from a related party for the three months ended June 30, 2026 and 2025, and $50,000 and nil for the six months ended June 30, 2026 and 2025, respectively)
—
899,194
177,228
1,961,485
Proceeds from sale of investments
—
—
951,125
—
Purchases of investments (including nil from a related party for the three months ended June 30, 2026 and 2025, and nil and $(30,000) for the six months ended June 30, 2026 and 2025, respectively)
(28,512)
(22,528)
(28,512)
(309,557)
Net cash provided by (used in) investing activities
(282,339)
694,003
592,847
1,308,024
LUCID GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - continued
(Unaudited)
(in thousands)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Cash flows from financing activities:
Proceeds from issuance of common stock under 2026 Underwriting Agreement
292,500
—
292,500
—
Payments of issuance costs for the 2026 Underwriting Agreement
(579)
—
(579)
—
Proceeds from issuance of common stock under 2026 Subscription Agreement to a related party
200,000
—
200,000
—
Proceeds from issuance of Series C redeemable convertible preferred stock to a related party
550,000
—
550,000
—
Payments of issuance costs for Series C redeemable convertible preferred stock
(750)
—
(750)
—
Payments of transaction costs for the issuance of 2031 Notes
—
—
(1,165)
—
Proceeds from issuance of 2030 Notes
—
1,100,000
—
1,100,000
Payments of transaction costs for the issuance of 2030 Notes
—
(17,924)
—
(17,924)
Purchase of capped calls
—
(118,250)
—
(118,250)
Repurchase of 2026 Notes
—
(931,433)
—
(931,433)
Proceeds from borrowings from related parties
500,000
39,989
535,994
106,645
Proceeds from exercise of stock options
17
861
2,785
1,274
Proceeds from employee stock purchase plan
9,833
12,696
9,833
12,696
Tax withholding payments for net settlement of employee awards
(206)
(6,172)
(1,311)
(9,449)
Payment for finance lease liabilities
(1,249)
(822)
(2,461)
(1,376)
Payments for credit facility issuance costs to related parties
(3,750)
—
(3,750)
(507)
Net cash provided by financing activities
1,545,816
78,945
1,581,096
141,676
Net increase (decrease) in cash, cash equivalents, and restricted cash
41,246
(57,293)
(233,947)
190,846
Beginning cash, cash equivalents, and restricted cash
765,720
1,855,191
1,040,913
1,607,052
Ending cash, cash equivalents, and restricted cash
$ 806,966
$ 1,797,898
$ 806,966
$ 1,797,898
LUCID GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
(in thousands, except share and per share data)
Adjusted EBITDA
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net loss attributable to common stockholders, basic (GAAP)
$ (1,259,276)
$ (739,255)
$ (2,393,582)
$ (1,470,351)
Interest expense
47,817
23,749
88,890
35,632
Interest income
(9,634)
(44,318)
(22,738)
(96,527)
Provision for (benefit from) income taxes
1,050
(2,369)
1,227
(3,732)
Depreciation and amortization
122,222
111,088
238,634
209,047
Stock-based compensation
41,948
56,319
104,337
83,834
Workforce reduction charges
33,675
—
71,609
—
Change in fair value of common stock warrant liability
—
(5,322)
—
(18,183)
Change in fair value of equity securities of a related party
(549)
(3,948)
9,672
9,505
Change in fair value of derivative liabilities and subscription agreements associated with redeemable convertible preferred stock (related party)
(102,790)
(111,475)
(110,165)
(393,175)
Accretion of redeemable convertible preferred stock (related party)
224,425
199,823
330,387
564,748
Gain on extinguishment of debt
—
(116,360)
—
(116,360)
Adjusted EBITDA (non-GAAP)
$ (901,112)
$ (632,068)
$ (1,681,729)
$ (1,195,562)
Adjusted Net Loss Attributable to Common Stockholders
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net loss attributable to common stockholders, diluted (GAAP)
$ (1,259,276)
$ (855,306)
$ (2,393,582)
$ (1,582,428)
Stock-based compensation
41,948
56,319
104,337
83,834
Workforce reduction charges
33,675
—
71,609
—
Change in fair value of common stock warrant liability
—
(5,322)
—
(18,183)
Change in fair value of equity securities of a related party
(549)
(3,948)
9,672
9,505
Change in fair value of derivative liabilities and subscription agreements associated with redeemable convertible preferred stock (related party)
(102,790)
(111,475)
(110,165)
(393,175)
Accretion of redeemable convertible preferred stock (related party)
224,425
199,823
330,387
564,748
Adjusted net loss attributable to common stockholders, diluted (non-GAAP)
$ (1,062,567)
$ (719,909)
$ (1,987,742)
$ (1,335,699)
Adjusted Net Loss Per Share Attributable to Common Stockholders(1)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net loss per share attributable to common stockholders, diluted (GAAP)
$ (3.30)
$ (2.80)
$ (6.74)
$ (5.18)
Stock-based compensation
0.11
0.19
0.30
0.28
Workforce reduction charges
0.09
—
0.20
—
Change in fair value of common stock warrant liability
—
(0.02)
—
(0.06)
Change in fair value of equity securities of a related party
—
(0.01)
0.03
0.03
Change in fair value of derivative liabilities and subscription agreements associated with redeemable convertible preferred stock (related party)
(0.27)
(0.36)
(0.31)
(1.29)
Accretion of redeemable convertible preferred stock (related party)
0.59
0.65
0.93
1.85
Adjusted net loss per share attributable to common stockholders, diluted (non-GAAP)
$ (2.78)
$ (2.35)
$ (5.59)
$ (4.37)
Weighted-average shares outstanding attributable to common stockholders, diluted
382,098,609
305,788,272
355,340,787
305,670,808
(1) The weighted-average shares outstanding attributable to common stockholders, net loss per share attributable to common stockholders and adjusted net loss per share attributable to common stockholders have been adjusted for the prior periods presented to reflect the one-for-ten (1:10) reverse stock split effected on August 29, 2025.
LUCID GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES - continued
Upstart ve 2. čtvrtletí překonal odhady: EPS činil 16 centů na akcii a tržby dosáhly 364,71 milionu USD. V prodlouženém obchodování akcie UPST vzrostly o 12,6 %.
UPST stock is moving. Watch the price action here. Upstart Q2 Details Upstart reported quarterly earnings of 16 cents per share. Quarterly revenue came in at $364.71 million, which beat the Street’s estimate of $351.52 million, according to Benzinga Pro data.
The company reported the following second-quarter highlights:
“We came into this quarter with a clear plan, and we executed against it — re-accelerating growth in core personal loans, moving our secured products rapidly toward profitability, and funding that growth without adding equity capital,” said CEO Paul Gu.
“The results speak for themselves: originations up 50% year-over-year and we returned to GAAP profitability, with an all-time-high Contribution Profit,” Gu added.
UPST Stock Price Activity: According to data from Benzinga Pro, Upstart stock was up 12.6% to $34.14 in Tuesday’s extended trading.
Photo: Shutterstock
Market News and Data brought to you by Benzinga APIs
Dell hlásí rekordní backlog ve výši 43 miliard USD a poptávka po AI serverech prudce roste; výnosy z AI-optimovaných serverů v 1. čtvrtletí vzrostly o 757 %.
Key Takeaways Dell has transformed into an AI infrastructure powerhouse.AI server demand is growing exponentially.The company offers investors hyper-growth at a reasonable price. AI Reinvigorates Dell TechnologiesZacks Rank #2 (Buy) stock Dell Technologies ((DELL - Free Report) ) is a leading provider of servers, storage, and PCs. Dell is best-known for its desktop computers, laptops, and monitors. However, the company is now taking advantage of the artificial intelligence boom, with nearly 40% of its revenue derived from it. It offers the Dell “AI Factory,” an end-to-end service that combines Dell’s compute, storage, client devices, and networking with open software ecosystems to streamline enterprise AI adoption. Additionally, Dell offers high-performance infrastructure for AI-optimized data center servers. Also, Dell offers clients on-premises setups that enable companies to run autonomous multi-step AI agents locally on high-performance workstations.
Dell AI Server Demand ExplodesDell AI servers provide the high-performance physical infrastructure required to build, train, fine-tune, and run artificial intelligence models. The company helps clients integrate dense clusters of graphics processing units (GPUs) to handle complex mathematical workloads such as Generative AI and deep learning. Although other companies compete with Dell in this industry, Dell has a large advantage over competitors because it has strategic partnerships with the two dominant AI makers – Advanced Micro Devices ((AMD - Free Report) ) and NVIDIA ((NVDA - Free Report) ). AI-optimized server revenue grew a mind-boggling 757% in Q1, and the company has a record backlog. Meanwhile, with big tech CAPEX spending expected to soar, server demand will continue to grow exponentially.
Surging AI BacklogDell currently sits on a record backlog of $43 billion. Meanwhile, Wall Street analysts expect that the $300 billion behemoth to grow annual earnings by 66.80% in 2026 and 82.52% in 2027.
Image Source: Zacks Investment Research
Dell: A Reasonable ValuationAlthough Dell shares have soared recently, its valuation remains rather cheap. The stock has a P/E ratio of 31.41x. Meanwhile, its PEG ratio (which factors in the consensus long-term growth rate) is actually lower than it was in 2024.
Image Source: Zacks Investment Research
Dell Breaks Out of High, Tight Flag PatternGrowth investing legend William O’Neil coined the “high tight flag” technical pattern. The pattern is one of the rarest and most powerful patterns and led to monstrous moves in SanDisk ((SNDK - Free Report) ) in 2026 and Qualcomm ((QCOM - Free Report) ) in 2000. To spot the pattern, look for the following characteristics.
· The Pole: The stock must double or more in eight weeks or less. A swift move in such a short period is evidence of overwhelming accumulation.
· The Flag: The flag requires a pullback between three to five weeks that is no deeper than 25% off the flag pole high. Ideally, trading volume dries up during this period.
Tuesday, DELL Shares broke out of a classic HTF pattern:
Image Source: TradingView
Beyond the pattern itself, DELL has been impressive from a relative strength perspective. While AI-related stocks like Marvell Technologies (MRVL) and SanDisk (SNDK - Free Report) cratered in July, Dell saw little selling.
Image Source: Zacks Investment Research
Bottom Line
Dell has successfully evolved from a traditional PC manufacturer to an AI powerhouse. Driven by a massive backlog, key partnerships with chipmakers, and exceptionally strong technical tailwinds, the stock offers a rare blend of hyper-growth fundamentals coupled with a reasonable valuation.
Qualys ve 2. čtvrtletí zvýšil výnosy o 11 % na 182,2 mil. USD a GAAP čistý zisk na 52,4 mil. USD. Zároveň zvýšil celoroční výhled výnosů na 732,0–738,0 mil. USD.
Q2 Revenue Growth of 11% Year-Over-Year
Raises 2026 Revenue Guidance to $732.0-$738.0 million
, /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a leading provider of disruptive cloud-based IT, security and compliance solutions, today announced financial results for the second quarter ended June 30, 2026. For the quarter, the Company reported revenues of $182.2 million, net income under United States Generally Accepted Accounting Principles ("GAAP") of $52.4 million, non-GAAP net income of $69.2 million, Adjusted EBITDA of $83.8 million, GAAP net income per diluted share of $1.50, and non-GAAP net income per diluted share of $1.98.
"In Q2, we continued to execute well, demonstrated by another quarter of solid revenue growth and profitability," said Sumedh Thakar, Qualys' president and CEO. "Qualys' continuous innovation spanning AI for security and security for AI, growing AI-native Risk Operations Center adoption powered by our Enterprise TruRisk Management solution, a growing federal pipeline of new business opportunity, strong partner-led execution, and promising early QFlex engagement continue to reinforce the demand we're seeing for a unified risk management platform that autonomously moves beyond theoretical exposure to validated, quantified, and remediated risk at the speed of modern attacks in multi-vendor environments. We believe these achievements not only advance our strong competitive differentiation but also sharpen the market opportunity ahead of us and bolster our confidence in reaccelerating long-term growth in the business."
Second Quarter 2026 Financial Highlights
Revenues: Revenues for the second quarter of 2026 increased by 11% to $182.2 million compared to $164.1 million for the same quarter in 2025.
Gross Profit: GAAP gross profit for the second quarter of 2026 increased by 12% to $151.9 million compared to $135.2 million for the same quarter in 2025. GAAP gross margin was 83% for the second quarter of 2026 compared to 82% for the same quarter in 2025. Non-GAAP gross profit for the second quarter of 2026 increased by 12% to $154.5 million compared to $137.8 million for the same quarter in 2025. Non-GAAP gross margin was 85% for the second quarter of 2026 compared to 84% for the same quarter in 2025.
Operating Income: GAAP operating income for the second quarter of 2026 increased by 20% to $61.9 million compared to $51.4 million for the same quarter in 2025. As a percentage of revenues, GAAP operating income was 34% for the second quarter of 2026 compared to 31% for the same quarter in 2025. Non-GAAP operating income for the second quarter of 2026 increased by 16% to $81.4 million compared to $70.1 million for the same quarter in 2025. As a percentage of revenues, non-GAAP operating income was 45% for the second quarter of 2026 compared to 43% for the same quarter in 2025.
Net Income: GAAP net income for the second quarter of 2026 increased by 11% to $52.4 million, or $1.50 per diluted share, compared to $47.3 million, or $1.29 per diluted share, for the same quarter in 2025. As a percentage of revenues, GAAP net income was 29% for both the second quarter of 2026 and for the same quarter in 2025. Non-GAAP net income for the second quarter of 2026 increased by 13% to $69.2 million, or $1.98 per diluted share, compared to $61.2 million, or $1.68 per diluted share, for the same quarter in 2025. As a percentage of revenues, non-GAAP net income was 38% for the second quarter of 2026 compared to 37% for the same quarter in 2025.
Adjusted EBITDA: Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2026 increased by 14% to $83.8 million compared to $73.4 million for the same quarter in 2025. As a percentage of revenues, Adjusted EBITDA was 46% for the second quarter of 2026 compared to 45% for the same quarter in 2025.
Operating Cash Flow: Operating cash flow for the second quarter of 2026 increased by 77% to $59.6 million compared to $33.8 million for the same quarter in 2025. As a percentage of revenues, operating cash flow was 33% for the second quarter of 2026 compared to 21% for the same quarter in 2025.
Second Quarter 2026 Business Highlights
Qualys' TotalCloud solution achieved FedRAMP High Authorization, sponsored by the U.S. Drug Enforcement Administration (DEA). This extends the Qualys Government Platform's authorization to include Cloud-Native Application Protection Platform (CNAPP) capabilities and makes TotalCloud available through the FedRAMP Marketplace for federal agencies and other highly regulated organizations. Qualys collaborated with leading AI and cybersecurity organizations, Anthropic Project Glasswing and Open AI's Trusted Access for Cyber program, to help advance the secure and responsible deployment of frontier AI technologies. Qualys was recognized by Frost & Sullivan in two 2026 Frost Radar™ reports as a Visionary Leader in Cloud and Application Runtime Security and a Leading Technology Player in Cloud-Native Application Protection Platforms (CNAPP). Qualys and Converge announced a joint offering that rewards organizations for demonstrated cybersecurity compliance. The collaboration allows Qualys customers who actively manage and prove strong security hygiene with Enterprise TruRisk Management (ETM) to potentially qualify for reduced cyber insurance premiums from Converge. Hosted ROCon user conferences in London, Milan, Sydney, and Washington, D.C., bringing together security leaders to explore strategies for translating cyber risk into measurable business outcomes in the age of frontier AI. Financial Performance Outlook
Based on information as of today, August 4, 2026, Qualys is issuing the following financial guidance for the third quarter and full year fiscal 2026. The Company emphasizes that the guidance is subject to various important cautionary factors referenced in the sections entitled "Legal Notice Regarding Forward-Looking Statements" and "Non-GAAP Financial Measures" below.
Third Quarter 2026 Guidance: Management expects revenues for the third quarter of 2026 to be in the range of $185.5 million to $187.5 million, representing 9% to 10% growth over the same quarter in 2025. GAAP net income per diluted share is expected to be in the range of $1.43 to $1.50, which assumes an effective income tax rate of 21%. Non-GAAP net income per diluted share is expected to be in the range of $1.91 to $1.98, which assumes a non-GAAP effective income tax rate of 20%. Third quarter 2026 net income per diluted share estimates are based on approximately 35.0 million weighted average diluted shares outstanding for the quarter.
Full Year 2026 Guidance: Management now expects revenues for the full year of 2026 to be in the range of $732.0 million to $738.0 million, representing 9% to 10% growth over 2025. This compares to the previous guidance range of $721.0 million to $727.0 million. GAAP net income per diluted share is now expected to be in the range of $5.76 to $5.90, up from the previous guidance range of $5.40 to $5.61. This assumes an effective income tax rate of 21%. Non-GAAP net income per diluted share is now expected to be in the range of $7.74 to $7.88, up from the previous guidance range of $7.44 to $7.65. This assumes a non-GAAP effective income tax rate of 20%. Full year 2026 net income per diluted share estimates are based on approximately 35.2 million weighted average diluted shares outstanding.
Qualys has not reconciled non-GAAP net income per diluted share guidance to GAAP net income per diluted share guidance because Qualys does not provide guidance on the various reconciling cash and non-cash items between GAAP net income and non-GAAP net income (i.e., stock-based compensation, amortization of intangible assets from acquisitions and non-recurring items). The actual dollar amount of reconciling items in the third quarter and full year 2026 is likely to have a significant impact on the Company's GAAP net income per diluted share in the third quarter and full year 2026. A reconciliation of the non-GAAP net income per diluted share guidance to the GAAP net income per diluted share guidance is not available without unreasonable effort.
Investor Conference Call
Qualys will host a conference call and live webcast to discuss its second quarter financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on Tuesday, August 4, 2026. To access the conference call by phone, please register here. A live webcast of the earnings conference call, investor presentation and prepared remarks can be accessed at https://investor.qualys.com/events-presentations. A replay of the conference call will be available through the same webcast link following the end of the call.
Investor Contact
Blair King
Senior Vice President, Investor Relations and Financial Planning & Analysis
(650) 538-2088
[email protected]
About Qualys
Qualys, Inc. (NASDAQ: QLYS) is a leading provider of disruptive cloud-based Security, Compliance and IT solutions with more than 10,000 subscription customers worldwide, including a majority of the Forbes Global 100 and Fortune 100. Qualys helps organizations streamline and consolidate their security and compliance solutions onto a single platform for greater agility, better business outcomes, and substantial cost savings.
The Qualys Enterprise TruRisk Platform leverages a single agent to continuously deliver critical security intelligence while enabling enterprises to automate the full spectrum of vulnerability detection, compliance, and protection for IT systems, workloads and web applications across on premises, endpoints, servers, public and private clouds, containers, and mobile devices. Founded in 1999 as one of the first SaaS security companies, Qualys has strategic partnerships and seamlessly integrates its vulnerability management capabilities into security offerings from cloud service providers, including Amazon Web Services, the Google Cloud Platform and Microsoft Azure, along with a number of leading managed service providers and global consulting organizations. For more information, please visit www.qualys.com.
Qualys, Qualys VMDR® and the Qualys logo are proprietary trademarks of Qualys, Inc. All other products or names may be trademarks of their respective companies.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, quotations of management and statements related to: the benefits of our existing, new and upcoming products, features, integrations, collaborations and joint solutions, and their impact upon our long-term growth; our expectations regarding AI for security and security for AI; our expectations regarding business opportunities with the federal government; our expectations regarding our business partners; our ability to advance our value proposition and competitive differentiation in the market; our ability to address demand trends; our ability to maintain and strengthen our category leadership; our ability to solve modern security challenges at scale; our strategies and ability to achieve and maintain durable profitable growth; our guidance for revenues, GAAP EPS and non-GAAP EPS for the third quarter and full year 2026; and our expectations for the number of weighted average diluted shares outstanding and the GAAP and non-GAAP effective income tax rate for the third quarter and full year 2026. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include our ability to continue to develop platform capabilities and solutions; the ability of our platform and solutions to perform as intended; customer acceptance and purchase of our existing solutions and new solutions; real or perceived defects, errors or vulnerabilities in our products or services; our ability to retain existing customers and generate new customers; the budgeting cycles and seasonal buying patterns of our customers; our ability to maintain government authorizations applicable to our platform; general market, political, economic and business conditions in the United States as well as globally; our ability to manage costs as we increase our customer base and the number of our platform solutions; the market for cloud solutions for IT security and compliance not increasing at the rate we expect; competition from other products and services; fluctuations in currency exchange rates; unexpected fluctuations in our effective income tax rate on a GAAP and non-GAAP basis; our ability to effectively manage our rapid growth and our ability to anticipate future market needs and opportunities; and any unanticipated accounting charges. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.
The forward-looking statements in this press release are based on information available to Qualys as of the date hereof, and Qualys disclaims any obligation to update any forward-looking statements, except as required by law.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with GAAP, Qualys provides investors with certain non-GAAP financial measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA (defined as earnings before interest expense, interest income and other income (expense), net, income taxes, depreciation, amortization, and stock-based compensation) and non-GAAP free cash flows (defined as cash provided by operating activities less purchases of property and equipment, net of proceeds from disposal).
In computing non-GAAP financial measures, Qualys excludes the effects of stock-based compensation expense, amortization of intangible assets from acquisitions, non-recurring items and for non-GAAP net income, impairment of non-marketable securities and certain tax effects. Qualys believes that these non-GAAP financial measures help illustrate underlying trends in its business that could otherwise be masked by the effect of the income or expenses that are excluded in non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA and non-GAAP free cash flows.
Furthermore, Qualys uses some of these non-GAAP financial measures to establish budgets and operational goals for managing its business and evaluating its performance. Qualys believes that non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income per diluted share, Adjusted EBITDA and non-GAAP free cash flows provide additional tools for investors to use in comparing its recurring core business operating results over multiple periods with other companies in its industry.
Although Qualys does not focus on or use quarterly billings in managing or monitoring the performance of its business, Qualys provides calculated current billings (defined as total revenues recognized in a period plus the sequential change in current deferred revenue in the corresponding period) for the convenience of investors and analysts in building their own financial models.
In order to provide a more complete picture of recurring core operating business results, the Company's non-GAAP net income and non-GAAP net income per diluted share include adjustments for non-recurring income tax items and certain tax effects of non-GAAP adjustments to achieve the effective income tax rate on a non-GAAP basis. The Company's non-GAAP effective tax rate may differ from the GAAP effective income tax rate as a result of these income tax adjustments. The Company believes its estimated non-GAAP effective income tax rate of 20% in 2026 is a reasonable estimate under its current global operating structure and core business operations. The Company may adjust this rate during the year to take into account events or trends that it believes materially impact the estimated annual rate. The non-GAAP effective income tax rate could be subject to change for a number of reasons, including but not limited to, significant changes resulting from tax legislation, material changes in geographic mix of revenues and expenses and other significant events.
The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors.
Qualys, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Revenues
$ 182,175
$ 164,062
$ 357,813
$ 323,961
Cost of revenues (1)
30,244
28,877
60,234
57,803
Gross profit
151,931
135,185
297,579
266,158
Operating expenses:
Research and development (1)
30,685
30,249
59,705
59,403
Sales and marketing (1)
41,024
35,810
79,784
68,470
General and administrative (1)
18,320
17,719
35,303
35,123
Total operating expenses
90,029
83,778
174,792
162,996
Income from operations
61,902
51,407
122,787
103,162
Other income (expense), net:
Interest income
6,241
6,407
12,417
12,642
Other income (expense), net
(1,080)
999
(3,151)
1,316
Total other income, net
5,161
7,406
9,266
13,958
Income before income taxes
67,063
58,813
132,053
117,120
Income tax provision
14,658
11,523
29,005
22,296
Net income
$ 52,405
$ 47,290
$ 103,048
$ 94,824
Net income per share:
Basic
$ 1.50
$ 1.30
$ 2.92
$ 2.61
Diluted
$ 1.50
$ 1.29
$ 2.91
$ 2.59
Weighted average shares used in computing net income per share:
Basic
34,989
36,253
35,297
36,359
Diluted
35,030
36,519
35,353
36,651
(1) Includes stock-based compensation as follows:
Cost of revenues
$ 1,941
$ 1,980
$ 4,002
$ 4,070
Research and development
4,511
4,963
9,119
10,067
Sales and marketing
3,712
3,083
7,901
6,283
General and administrative
8,649
8,020
17,131
16,446
Total stock-based compensation, net of amounts capitalized
$ 18,813
$ 18,046
$ 38,153
$ 36,866
Qualys, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands)
June 30,
2026
December 31,
2025
Assets
Current assets:
Cash and cash equivalents
$ 250,291
$ 250,258
Short-term marketable securities
176,003
195,681
Accounts receivable, net
139,779
170,991
Prepaid expenses and other current assets
52,620
40,686
Total current assets
618,693
657,616
Long-term marketable securities
277,171
250,868
Property and equipment, net
22,591
23,166
Operating leases - right of use asset
48,184
46,001
Deferred tax assets, net
69,569
74,518
Intangible assets, net
2,976
4,255
Goodwill
7,447
7,447
Noncurrent restricted cash
1,200
1,200
Other noncurrent assets
26,342
30,010
Total assets
$ 1,074,173
$ 1,095,081
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$ 1,154
$ 1,202
Accrued liabilities
49,250
57,694
Deferred revenues, current
388,075
401,127
Operating lease liabilities, current
8,554
7,315
Total current liabilities
447,033
467,338
Deferred revenues, noncurrent
14,237
16,285
Operating lease liabilities, noncurrent
44,845
44,959
Other noncurrent liabilities
5,835
5,346
Total liabilities
511,950
533,928
Stockholders' equity:
Common stock
35
36
Additional paid-in capital
753,067
731,788
Accumulated other comprehensive loss
(3,284)
(4,012)
Accumulated deficit
(187,595)
(166,659)
Total stockholders' equity
562,223
561,153
Total liabilities and stockholders' equity
$ 1,074,173
$ 1,095,081
Qualys, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Six Months Ended
June 30,
2026
2025
Cash flow from operating activities:
Net income
$ 103,048
$ 94,824
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense
6,105
8,155
Provision for credit losses
328
850
Impairment of property and equipment
624
—
Impairment of non-marketable securities
1,967
—
Stock-based compensation, net of amounts capitalized
38,153
36,866
Accretion of discount on marketable securities, net
(857)
(2,008)
Deferred income taxes
4,278
(8,605)
Changes in operating assets and liabilities:
Accounts receivable
30,884
35,026
Prepaid expenses and other assets
(7,748)
(4,609)
Accounts payable
(96)
699
Accrued liabilities and other noncurrent liabilities
(6,678)
3,683
Deferred revenues
(15,100)
(21,522)
Net cash provided by operating activities
154,908
143,359
Cash flow from investing activities:
Purchases of marketable securities
(146,477)
(183,545)
Sales and maturities of marketable securities
137,437
100,770
Purchases of property and equipment
(5,367)
(3,365)
Net cash used in investing activities
(14,407)
(86,140)
Cash flow from financing activities:
Repurchase of common stock
(131,388)
(89,545)
Proceeds from exercise of stock options
934
5,577
Payments for taxes related to net share settlement of equity awards
(13,865)
(15,267)
Proceeds from issuance of common stock through employee stock purchase plan
3,851
3,817
Net cash used in financing activities
(140,468)
(95,418)
Net increase (decrease) in cash, cash equivalents and restricted cash
33
(38,199)
Cash, cash equivalents and restricted cash at beginning of period
251,458
233,382
Cash, cash equivalents and restricted cash at end of period
$ 251,491
$ 195,183
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
ADJUSTED EBITDA
(unaudited)
(in thousands, except percentages)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net income
$ 52,405
$ 47,290
$ 103,048
$ 94,824
Net income as a percentage of revenues
29 %
29 %
29 %
29 %
Depreciation and amortization of property and equipment
2,423
3,339
4,826
6,876
Amortization of intangible assets
639
639
1,279
1,279
Income tax provision
14,658
11,523
29,005
22,296
Stock-based compensation
18,813
18,046
38,153
36,866
Total other income, net
(5,161)
(7,406)
(9,266)
(13,958)
Adjusted EBITDA
$ 83,777
$ 73,431
$ 167,045
$ 148,183
Adjusted EBITDA as a percentage of revenues
46 %
45 %
47 %
46 %
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
(unaudited)
(in thousands, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
GAAP Cost of revenues
$ 30,244
$ 28,877
$ 60,234
$ 57,803
Less: Stock-based compensation
(1,941)
(1,980)
(4,002)
(4,070)
Less: Amortization of intangible assets
(639)
(639)
(1,279)
(1,279)
Non-GAAP Cost of revenues
$ 27,664
$ 26,258
$ 54,953
$ 52,454
GAAP Gross profit
$ 151,931
$ 135,185
$ 297,579
$ 266,158
Plus: Stock-based compensation
1,941
1,980
4,002
4,070
Plus: Amortization of intangible assets
639
639
1,279
1,279
Non-GAAP Gross Profit
$ 154,511
$ 137,804
$ 302,860
$ 271,507
GAAP Research and development
$ 30,685
$ 30,249
$ 59,705
$ 59,403
Less: Stock-based compensation
(4,511)
(4,963)
(9,119)
(10,067)
Non-GAAP Research and development
$ 26,174
$ 25,286
$ 50,586
$ 49,336
GAAP Sales and marketing
$ 41,024
$ 35,810
$ 79,784
$ 68,470
Less: Stock-based compensation
(3,712)
(3,083)
(7,901)
(6,283)
Non-GAAP Sales and marketing
$ 37,312
$ 32,727
$ 71,883
$ 62,187
GAAP General and administrative
$ 18,320
$ 17,719
$ 35,303
$ 35,123
Less: Stock-based compensation
(8,649)
(8,020)
(17,131)
(16,446)
Non-GAAP General and administrative
$ 9,671
$ 9,699
$ 18,172
$ 18,677
GAAP Operating expenses
$ 90,029
$ 83,778
$ 174,792
$ 162,996
Less: Stock-based compensation
(16,872)
(16,066)
(34,151)
(32,796)
Non-GAAP Operating expenses
$ 73,157
$ 67,712
$ 140,641
$ 130,200
GAAP Income from operations
$ 61,902
$ 51,407
$ 122,787
$ 103,162
Plus: Stock-based compensation
18,813
18,046
38,153
36,866
Plus: Amortization of intangible assets
639
639
1,279
1,279
Non-GAAP Income from operations
$ 81,354
$ 70,092
$ 162,219
$ 141,307
GAAP Net income
$ 52,405
$ 47,290
$ 103,048
$ 94,824
Plus: Stock-based compensation
18,813
18,046
38,153
36,866
Plus: Amortization of intangible assets
639
639
1,279
1,279
Plus: Impairment of non-marketable securities
—
—
1,967
—
Less: Tax adjustment
(2,647)
(4,763)
(5,687)
(10,310)
Non-GAAP Net income
$ 69,210
$ 61,212
$ 138,760
$ 122,659
GAAP Net income per share:
Basic
$ 1.50
$ 1.30
$ 2.92
$ 2.61
Diluted
$ 1.50
$ 1.29
$ 2.91
$ 2.59
Non-GAAP Net income per share:
Basic
$ 1.98
$ 1.69
$ 3.93
$ 3.37
Diluted
$ 1.98
$ 1.68
$ 3.92
$ 3.35
Weighted average shares used in GAAP and non-GAAP net income per share:
Basic
34,989
36,253
35,297
36,359
Diluted
35,030
36,519
35,353
36,651
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
FREE CASH FLOWS
(unaudited)
(in thousands)
Six Months Ended
June 30,
2026
2025
GAAP Cash flows provided by operating activities
$ 154,908
$ 143,359
Less:
Purchases of property and equipment, net of proceeds from disposal
(5,367)
(3,365)
Non-GAAP Free cash flows
$ 149,541
$ 139,994
Qualys, Inc.
RECONCILIATION OF NON-GAAP DISCLOSURES
CALCULATED CURRENT BILLINGS
(unaudited)
(in thousands, except percentages)
Three Months Ended
June 30,
2026
2025
GAAP Revenue
$ 182,175
$ 164,062
GAAP Revenue growth compared to same quarter of prior year
11 %
10 %
Plus: Current deferred revenue at June 30
388,075
354,971
Less: Current deferred revenue at March 31
(393,800)
(366,824)
Non-GAAP Calculated current billings
$ 176,450
$ 152,209
Calculated current billings growth compared to same quarter of prior year
Celanese ve 2. čtvrtletí vykázala upravený zisk na akcii 2,45 USD a tržby 2,752 miliardy USD, což bylo o 18 % více než v předchozím čtvrtletí. Firma zároveň očekává ve 3. čtvrtletí upravený zisk na akcii kolem 1,35 až 1,75 USD.
DALLAS--(BUSINESS WIRE)--Celanese Corporation (NYSE: CE), a global chemical and specialty materials company, today reported second quarter 2026 U.S. GAAP diluted earnings per share of $1.15 and adjusted earnings per share of $2.45. Net sales of $2.8 billion increased 18 percent sequentially, reflecting a 4 percent increase in volume and a 14 percent increase in price. Results were driven by strong execution across both businesses, including favorable pricing and mix outcomes in Engineered Materials and strong commercial and operational execution within the Acetyl Chain. The quarter also benefited from continued momentum across targeted growth platforms, particularly in medical and electronics.
Celanese leveraged the flexibility of its global manufacturing and supply chain networks to capitalize on rapidly evolving market conditions while continuing to advance actions designed to improve the competitiveness, resilience, and earnings power of the portfolio. For the second quarter, the Company reported consolidated operating profit of $276 million, adjusted EBIT of $470 million, and operating EBITDA of $649 million at margins of 10, 17, and 24 percent, respectively.
During the quarter, Celanese continued to execute against its strategic priorities of driving growth, intensifying cost improvements, and strengthening cash generation to support deleveraging. Actions included completion of the Ulsan, South Korea Engineered Materials compounding unit closure, completion of the nylon 6,6 manufacturing network optimization ahead of schedule, and continued progress toward the planned closure of the acetate tow facility in Lanaken, Belgium. Together, these initiatives are expected to deliver in excess of $50 million of annualized fixed-cost savings while improving the long-term competitiveness of the portfolio.
“The second quarter demonstrated the agility and focus of Celanese and the benefits of the actions we are taking across both businesses,” said Scott Richardson, president and chief executive officer. “We delivered our highest adjusted earnings per share in nearly three years through commercial execution, continued progress in our growth initiatives, and the effectiveness of our global manufacturing and supply chain networks. At the same time, we advanced important portfolio, productivity, and footprint actions that are improving competitiveness, strengthening cash generation, supporting deleveraging, and positioning Celanese for continued earnings growth.”
Second Quarter 2026 Financial Highlights:
Three Months Ended
June 30,
2026
March 31,
2026
June 30,
2025
(unaudited)
(In $ millions, except per share data)
Net Sales
Engineered Materials
1,446
1,325
1,442
Acetyl Chain
1,329
1,036
1,115
Intersegment Eliminations
(23
)
(24
)
(25
)
Total
2,752
2,337
2,532
Operating Profit (Loss)
Engineered Materials
156
221
164
Acetyl Chain
237
95
153
Other Activities
(117
)
(102
)
(86
)
Total
276
214
231
Net Earnings (Loss)
129
48
200
Adjusted EBIT(1)
Engineered Materials
234
220
213
Acetyl Chain
321
131
195
Other Activities
(85
)
(76
)
(66
)
Total
470
275
342
Equity Earnings and Dividend Income
Engineered Materials
6
31
24
Acetyl Chain
44
2
43
Operating EBITDA(1)
649
455
530
Diluted EPS - continuing operations
$
1.15
$
0.41
$
1.89
Diluted EPS - total
$
1.13
$
0.40
$
1.80
Adjusted EPS(1)
$
2.45
$
0.85
$
1.43
Net cash provided by (used in) investing activities
(59
)
425
(88
)
Net cash provided by (used in) financing activities
(546
)
(3
)
(116
)
Net cash provided by (used in) operating activities
209
76
410
Free cash flow(1)
140
3
311
Recent Highlights:
Advanced the Engineered Materials Grow & Fortify strategy through the optimization of the Asia compounding network. Celanese completed the closure of its Ulsan, South Korea compounding facility and transitioned production to larger, more efficient assets in China and India, strengthening the regional supply chain while improving the competitiveness of the manufacturing footprint. Additionally, the business also completed, ahead of schedule, the previously announced optimization of the nylon 6,6 manufacturing network. Expanded the use of sustainable materials in automotive applications. As an example, Aisan Industry Kentucky, LLC, the consolidated subsidiary of Japan-based Aisan Industry Co., Ltd., adopted Celanese POM ECO-C for fuel pump modules supplied to a North American automaker, demonstrating continued commercial momentum for Celanese's lower-carbon engineered materials solutions and supporting customer sustainability objectives. Advanced downstream growth opportunities within the Acetyl Chain through sustainability-focused innovation. Celanese and Siegwerk, one of the world’s leading providers of printing inks and coatings for packaging applications and labels, announced a collaboration to support more sustainable printing ink solutions utilizing bio-based ethyl acetate, highlighting the Company's focus on higher-value downstream applications and customer-driven product innovation. Second Quarter Business Segment Overview
Engineered Materials
Engineered Materials reported second quarter net sales of $1.45 billion, a 9 percent sequential increase, consisting of a 3 percent increase in volume, a 6 percent increase in pricing, and a modest currency benefit. Results were driven by strong commercial execution, favorable pricing and mix, and continued momentum across strategic growth platforms, particularly in medical and electronics. The business reported second quarter operating profit of $156 million, adjusted EBIT of $234 million, and operating EBITDA of $335 million, with margins of 11, 16, and 23 percent, respectively. Performance benefited from improving portfolio mix, targeted growth initiatives, and ongoing execution of the Engineered Materials Grow & Fortify strategy. During the quarter, the business completed the previously announced Ulsan, South Korea compounding unit closure and nylon 6,6 network optimization ahead of schedule, as well as the successful execution of the business's largest POM turnaround in five years. Collectively, these actions strengthen the business' competitiveness, flexibility, and participation in higher-growth end markets.
Acetyl Chain
The Acetyl Chain reported second quarter net sales of $1.33 billion, a 28 percent sequential increase, consisting of increases of 6 percent in volume and 22 percent in price, with a small currency benefit. Results reflected the successful capture of pricing and margin opportunities and volume gains in the Western Hemisphere driven by Celanese's position as a reliable supplier via the business's integrated global network. The business delivered second quarter operating profit of $237 million, adjusted EBIT of $321 million, and operating EBITDA of $385 million at margins of 18, 24, and 29 percent, respectively. Performance highlighted the flexibility of the Acetyl Chain business model, as the Company leveraged its integrated global network, reliability of supply, and commercial agility to capture opportunities and strengthen customer relationships. During the quarter, Celanese completed the rapid restart of the Frankfurt VAM unit, optimized network utilization, and continued advancing downstream growth initiatives and productivity actions designed to improve the durability and earnings profile of the business.
Cash Flow and Tax
Celanese reported second quarter operating cash flow of $209 million and free cash flow of $140 million. Cash generation in the quarter reflected timing effects of working capital associated with the higher sales and earnings profile. Capital expenditures remained disciplined and aligned with the Company's deleveraging priorities.
The effective U.S. GAAP income tax rate was 8 percent, reflecting the impact of discrete items occurring during the second quarter, which was higher compared to the same period in 2025, primarily due to non-recurring favorable tax items for changes in uncertain tax positions related to prior year tax examinations and deferred tax benefits related to integration transactions in the prior year. The effective tax rate for 2026 adjusted earnings was also 8 percent for the second quarter, and we anticipate this rate for the full year 2026 based on expected jurisdictional earnings mix for the full year and consideration of other non-recurring U.S. GAAP items.
Outlook
“Looking to the third quarter, we expect continued moderation of supply-related opportunities, along with the impact of higher raw material costs in Engineered Materials and inventory-related actions associated with our nylon 6,6 and Lanaken footprint optimizations,” continued Richardson. “Based on these dynamics, we expect third quarter adjusted earnings per share of approximately $1.35 to $1.75.”
“While earnings are expected to moderate from the strong second quarter level, we remain focused on executing the initiatives within our control and continue to expect approximately $6.00 of adjusted earnings per share and $700 to $800 million of free cash flow for the full year. In the second quarter, we saw early benefits of our growth strategy and the increasing contribution of our growth platforms. Together with our productivity, portfolio, and footprint actions, these initiatives position Celanese to deliver strong performance in 2026 and create additional earnings growth opportunities in the years ahead,” Richardson concluded.
Reconciliations of forecasted non-GAAP measures such as adjusted earnings per share, adjusted EBIT, operating EBITDA or free cash flow to the equivalent U.S. GAAP measures (diluted earnings per share, net earnings (loss) attributable to Celanese Corporation and net cash provided by (used in) operations, respectively), are not available without unreasonable efforts because a forecast of Certain Items, such as mark-to-market pension gains/losses, and other items is not practical. For more information, see "Non-GAAP Financial Measures" below.
The Company's prepared remarks related to the second quarter will be posted on its website at investors.celanese.com under Financial Information/Financial Document Library on August 4, 2026. Information about Non-US GAAP measures is included in a Non-US GAAP Financial Measures and Supplemental Information document posted on our investor relations website under Financial Information/Non-GAAP Financial Measures. See also "Non-GAAP Financial Measures" below.
Celanese Corporation is a global leader in chemistry, producing specialty material solutions used across most major industries and consumer applications. Our businesses use our chemistry, technology and commercial expertise to create value for our customers, employees and shareholders. We support sustainability by responsibly managing the materials we create and growing our portfolio of sustainable products to meet customer and societal demand. We strive to make a positive impact in our communities and to foster inclusivity across our teams. Celanese Corporation is a Fortune 500 company that employs more than 11,000 employees worldwide with 2025 net sales of $9.5 billion.
Forward-Looking Statements
This release may contain "forward-looking statements," which include information concerning the Company's plans, objectives, goals, strategies, future revenues, cash flow, financial performance, synergies, capital expenditures, deleveraging efforts, planned cost reductions, dividend policy, financing needs and other information that is not historical information. All forward-looking statements are based upon current expectations and beliefs and various assumptions. There can be no assurance that the Company will realize these expectations or that these beliefs will prove correct. There are a number of risks and uncertainties that could cause actual results to differ materially from the results expressed or implied in the forward-looking statements contained in this release. These risks and uncertainties include, among other things: the ability to successfully achieve planned cost reductions; changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate; the length and depth of product and industry business cycles, particularly in the automotive, electrical, textiles, electronics and construction industries; potential liability resulting from pending or future claims or litigation, including investigations or enforcement actions, or from changes in the laws, regulations or policies of governments or other governmental activities, in the countries in which we operate; our level of indebtedness and our financial condition, each of which could diminish our ability to raise additional capital to fund operations, reduce our business and strategic flexibility, increase our interest expense, limit the success of our deleveraging efforts, and impact changes to our credit ratings, which could increase our interest expense in the event of additional downgrades; volatility or changes in the price and availability of raw materials and energy, particularly changes in the demand for, supply of, and market prices of ethylene, methanol, natural gas, carbon monoxide, wood pulp, hexamethylene diamine, Polyamide 66 ("PA66"), polybutylene terephthalate, ethanol, natural gas and fuel oil, and the prices for electricity and other energy sources; the ability to pass increases in raw materials prices, logistics costs and other costs on to customers or otherwise improve margins through price increases; the possibility that we will not be able to realize the anticipated benefits of the Mobility & Materials business (the "M&M Business") we acquired from DuPont de Nemours, Inc. (the "M&M Acquisition"), including synergies and growth opportunities, whether as a result of difficulties arising from the operation of the M&M Business or other unanticipated delays, costs, inefficiencies or liabilities; additional impairment of goodwill or intangible assets; increased commercial, legal or regulatory complexity of entering into, or expanding our exposure to, certain end markets and geographies; risks in the global economy and equity and credit markets and their potential impact on our ability to pay down debt in the future and/or refinance at suitable rates, in a timely manner, or at all; the ability to maintain plant utilization rates and to implement planned capacity additions, expansions and maintenance; the ability to reduce or maintain current levels of production costs and to improve productivity by implementing technological improvements to existing plants; increased price competition and the introduction of competing products by other companies; the ability to identify desirable potential acquisition or divestiture opportunities and to complete such transactions, including obtaining regulatory approvals, consistent with the Company's strategy; market acceptance of our products and technology; compliance and other costs and potential disruption or interruption of production or operations due to accidents, interruptions in sources of raw materials, transportation, logistics or supply chain disruptions, cybersecurity incidents, AI-related vulnerabilities, terrorism or political unrest, public health crises, or other unforeseen events or delays in construction or operation of facilities, including as a result of geopolitical conditions, the direct or indirect consequences of acts of war or conflict (such as the Russia-Ukraine conflict or conflicts in the Middle East) or terrorist incidents or as a result of fire, flood, hurricanes, other severe weather, natural disasters, other catastrophic events, or other crises; the ability to obtain governmental approvals and to construct facilities on terms and schedules acceptable to the Company; changes in applicable tariffs, duties, treaties and trade agreements, tax rates or legislation throughout the world including, but not limited to, anti-dumping and countervailing duties, adjustments, changes in estimates or interpretations or the resolution of tax examinations or audits that may impact recorded or future tax impacts and potential regulatory and legislative tax developments in the United States and other jurisdictions; changes in the degree of intellectual property and other legal protection afforded to our products or technologies, or the theft of such intellectual property; potential liability for remedial actions and increased costs under existing or future environmental, health and safety regulations, including those relating to climate change or other sustainability matters; changes in currency exchange rates and interest rates; tax rates and changes thereto; and various other factors discussed from time to time in the Company's filings with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which it is made, and the Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.
Non-GAAP Financial Measures
Presentation
This document presents the Company's two business segments, Engineered Materials and the Acetyl Chain.
Use of Non-US GAAP Financial Information
This release uses the following Non-US GAAP measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA margin, adjusted earnings per share and free cash flow. These measures are not recognized in accordance with US GAAP and should not be viewed as an alternative to US GAAP measures of performance or liquidity. The most directly comparable financial measure presented in accordance with US GAAP in our consolidated financial statements for adjusted EBIT and operating EBITDA is net earnings (loss) attributable to Celanese Corporation; for adjusted EBIT margin is operating margin; for operating EBITDA margin is operating margin; for adjusted earnings per share is earnings (loss) from continuing operations attributable to Celanese Corporation per common share-diluted; and for free cash flow is net cash provided by (used in) operations.
Definitions of Non-US GAAP Financial Measures
Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxes, and further adjusted for Certain Items (refer to Table 8 of our Non-US GAAP Financial Measures and Supplemental Information document). We do not provide reconciliations for adjusted EBIT on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Adjusted EBIT margin is defined by the Company as adjusted EBIT divided by net sales. Operating EBITDA is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense, taxes and depreciation and amortization, and further adjusted for Certain Items, which Certain Items include accelerated depreciation and amortization expense. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization. We do not provide reconciliations for operating EBITDA on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Operating EBITDA margin is defined by the Company as operating EBITDA divided by net sales. Adjusted earnings per share is a performance measure used by the Company and is defined by the Company as earnings (loss) from continuing operations attributable to Celanese Corporation, adjusted for income tax (provision) benefit, Certain Items, and refinancing and related expenses, divided by the number of basic common shares and dilutive restricted stock units and stock options calculated using the treasury method. We do not provide reconciliations for adjusted earnings per share on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Note: The income tax expense (benefit) on Certain Items ("Non-GAAP adjustments") is determined using the applicable rates in the taxing jurisdictions in which the Non-GAAP adjustments occurred and includes both current and deferred income tax expense (benefit). The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities and related costs, where applicable, and specifically excludes changes in uncertain tax positions, discrete recognition of GAAP items on a quarterly basis, other pre-tax items adjusted out of our GAAP earnings for adjusted earnings per share purposes and changes in management's assessments regarding the ability to realize deferred tax assets for GAAP. In determining the adjusted earnings per share tax rate, we reflect the impact of foreign tax credits when utilized, or expected to be utilized, absent discrete events impacting the timing of foreign tax credit utilization. We analyze this rate quarterly and adjust it if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the actual tax rate used for GAAP reporting in any given reporting period. Table 3a of our Non-US GAAP Financial Measures and Supplemental Information document summarizes the reconciliation of our estimated GAAP effective tax rate to the adjusted tax rate. The estimated GAAP rate excludes discrete recognition of GAAP items due to our inability to forecast such items. As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate to the adjusted tax rate for actual results. Free cash flow is a liquidity measure used by the Company and is defined by the Company as net cash provided by (used in) operations, less capital expenditures on property, plant and equipment, and adjusted for contributions from or distributions to our noncontrolling interest joint ventures. We do not provide reconciliations for free cash flow on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of items such as working capital changes, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Reconciliation of Non-US GAAP Financial Measures
Reconciliations of the Non-US GAAP financial measures used in this press release to the comparable US GAAP financial measure, together with information about the purposes and uses of Non-US GAAP financial measures, are included in our Non-US GAAP Financial Measures and Supplemental Information document filed as an exhibit to our Current Report on Form 8-K filed with the SEC on or about August 4, 2026 and also available on our website at investors.celanese.com under Financial Information/Financial Document Library.
Results Unaudited
The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.
Beginning with the reporting period ending June 30, 2026, the Company revised its presentation of Equity Earnings and Dividend Income Attributable to Celanese Corporation. Previously, Other Income (Expense) Attributable to Celanese Corporation was included with the presentation of Equity Earnings and Dividend Income Attributable to Celanese Corporation. To provide a better understanding for readers of the U.S. GAAP results of the Company’s non-consolidated equity investments by presenting such results in isolation and better align with how management assesses such results, Other Income (Expense) Attributable to Celanese Corporation is now included with Non-Operating Pension, Other Post-Retirement Employee Benefit (Expense) Income Attributable to Celanese Corporation. Prior periods presented have been revised to reflect this change.
Certain prior period amounts have been revised to correct for certain prior period immaterial errors. See Note 1 to our Quarterly Report on Form 10-Q for the quarterly period ending June 30, 2026.
Supplemental Information
Additional information about our prior period performance is included in our Quarterly Reports on Form 10-Q and in our Non-US GAAP Financial Measures and Supplemental Information document.
Consolidated Statements of Operations - Unaudited
Three Months Ended
June 30,
2026
March 31,
2026
June 30,
2025
(In $ millions, except share and per share data)
Net sales
2,752
2,337
2,532
Cost of sales
(2,134
)
(1,869
)
(1,998
)
Gross profit
618
468
534
Selling, general and administrative expenses
(251
)
(226
)
(214
)
Amortization of intangible assets
(39
)
(40
)
(42
)
Research and development expenses
(29
)
(28
)
(31
)
Other (charges) gains, net
(31
)
(20
)
(20
)
Foreign exchange gain (loss), net
10
12
6
Gain (loss) on disposition of businesses and assets, net
(2
)
48
(2
)
Operating profit (loss)
276
214
231
Equity in net earnings (loss) of affiliates
11
35
29
Non-operating pension and other postretirement employee benefit (expense) income
5
5
1
Interest expense
(186
)
(183
)
(177
)
Interest income
10
9
7
Dividend income - equity investments
43
1
41
Other income (expense), net
(17
)
1
1
Earnings (loss) from continuing operations before tax
142
82
133
Income tax (provision) benefit
(11
)
(33
)
77
Earnings (loss) from continuing operations
131
49
210
Earnings (loss) from operation of discontinued operations
(2
)
(1
)
(10
)
Income tax (provision) benefit from discontinued operations
—
—
—
Earnings (loss) from discontinued operations
(2
)
(1
)
(10
)
Net earnings (loss)
129
48
200
Net (earnings) loss attributable to noncontrolling interests
(4
)
(4
)
(3
)
Net earnings (loss) attributable to Celanese Corporation
125
44
197
Amounts attributable to Celanese Corporation
Earnings (loss) from continuing operations
127
45
207
Earnings (loss) from discontinued operations
(2
)
(1
)
(10
)
Net earnings (loss)
125
44
197
Earnings (loss) per common share - basic
Continuing operations
1.16
0.41
1.89
Discontinued operations
(0.02
)
(0.01
)
(0.09
)
Net earnings (loss) - basic
1.14
0.40
1.80
Earnings (loss) per common share - diluted
Continuing operations
1.15
0.41
1.89
Discontinued operations
(0.02
)
(0.01
)
(0.09
)
Net earnings (loss) - diluted
1.13
0.40
1.80
Weighted average shares (in millions)
Basic
109.8
109.7
109.5
Diluted
110.2
110.0
109.7
Consolidated Balance Sheets - Unaudited
As of
June 30,
2026
As of
December 31,
2025
(In $ millions)
ASSETS
Current Assets
Cash and cash equivalents
1,364
1,263
Trade receivables - third party and affiliates, net
1,288
922
Non-trade receivables, net
581
545
Inventories
2,305
2,220
Assets held for sale
—
492
Other assets
257
251
Total current assets
5,795
5,693
Investments in affiliates
1,233
1,252
Property, plant and equipment, net
4,807
5,076
Operating lease right-of-use assets
417
359
Deferred income taxes
1,325
1,359
Other assets
605
601
Goodwill
4,151
4,171
Intangible assets, net
3,075
3,184
Total assets
21,408
21,695
LIABILITIES AND EQUITY
Current Liabilities
Short-term borrowings and current installments of long-term debt - third party and affiliates
1,311
1,204
Trade payables - third party and affiliates
1,485
1,279
Liabilities held for sale
—
75
Other liabilities
1,106
1,049
Income taxes payable
104
76
Total current liabilities
4,006
3,683
Long-term debt, net of unamortized deferred financing costs
10,696
11,394
Deferred income taxes
458
512
Uncertain tax positions
211
208
Benefit obligations
321
344
Operating lease liabilities
317
265
Other liabilities
811
817
Commitments and Contingencies
Shareholders' Equity
Treasury stock, at cost
(5,480
)
(5,482
)
Additional paid-in capital
450
431
Retained earnings
10,039
9,876
Accumulated other comprehensive income (loss), net
(842
)
(776
)
Total Celanese Corporation shareholders' equity
4,167
4,049
Noncontrolling interests
421
423
Total equity
4,588
4,472
Total liabilities and equity
21,408
21,695
Non-U.S. GAAP Financial Measures and Supplemental Information
August 4, 2026
In this document, the terms the "Company," "we" and "our" refer to Celanese Corporation and its subsidiaries on a consolidated basis.
Purpose
The purpose of this document is to provide information of interest to investors, analysts and other parties including supplemental financial information and reconciliations and other information concerning our use of non-U.S. GAAP financial measures. This document is updated quarterly.
Presentation
This document presents the Company's two business segments, Engineered Materials and the Acetyl Chain.
Use of Non-U.S. GAAP Financial Measures
From time to time, management may publicly disclose certain numerical "non-GAAP financial measures" in the course of our earnings releases, financial presentations, earnings conference calls, investor and analyst meetings and otherwise. For these purposes, the Securities and Exchange Commission ("SEC") defines a "non-GAAP financial measure" as a numerical measure of historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that effectively exclude amounts, included in the most directly comparable measure calculated and presented in accordance with U.S. GAAP, and vice versa for measures that include amounts, or are subject to adjustments that effectively include amounts, that are excluded from the most directly comparable U.S. GAAP measure so calculated and presented. For these purposes, "GAAP" refers to generally accepted accounting principles in the United States.
Non-GAAP financial measures disclosed by management are provided as additional information to investors, analysts and other parties because the Company believes them to be important supplemental measures for assessing our financial and operating results and as a means to evaluate our financial condition and period-to-period comparisons. These non-GAAP financial measures should be viewed as supplemental to, and should not be considered in isolation or as alternatives to, net earnings (loss), operating profit (loss), operating margin, cash flow from operating activities (together with cash flow from investing and financing activities), earnings per share or any other U.S. GAAP financial measure. These non-GAAP financial measures should be considered within the context of our complete audited and unaudited financial results for the given period, which are available on the Financial Information/Financial Document Library page of our website, investors.celanese.com. The definition and method of calculation of the non-GAAP financial measures used herein may be different from other companies' methods for calculating measures with the same or similar titles. Investors, analysts and other parties should understand how another company calculates such non-GAAP financial measures before comparing the other company's non-GAAP financial measures to any of our own. These non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive or projections of future results.
Pursuant to the requirements of SEC Regulation G, whenever we refer to a non-GAAP financial measure, we will also present in this document, in the presentation itself or on a Form 8-K in connection with the presentation on the Financial Information/Financial Document Library page of our website, investors.celanese.com, to the extent practicable, the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.
This document includes definitions and reconciliations of non-GAAP financial measures used from time to time by the Company.
Specific Measures Used
This document provides information about the following non-GAAP measures: adjusted EBIT, adjusted EBIT margin, operating EBITDA, operating EBITDA margin, operating profit (loss) attributable to Celanese Corporation, adjusted earnings per share, net debt, free cash flow and return on invested capital (adjusted). The most directly comparable financial measure presented in accordance with U.S. GAAP in our consolidated financial statements for adjusted EBIT and operating EBITDA is net earnings (loss) attributable to Celanese Corporation; for adjusted EBIT margin and operating EBITDA margin is operating margin; for operating profit (loss) attributable to Celanese Corporation is operating profit (loss); for adjusted earnings per share is earnings (loss) from continuing operations attributable to Celanese Corporation per common share-diluted; for net debt is total debt; for free cash flow is net cash provided by (used in) operations; and for return on invested capital (adjusted) is net earnings (loss) attributable to Celanese Corporation divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation shareholders' equity.
Definitions
Adjusted EBIT is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense and taxes, and further adjusted for Certain Items (refer to Table 8). We believe that adjusted EBIT provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of unusual, non-operational or restructuring-related activities that affect comparability. Our management recognizes that adjusted EBIT has inherent limitations because of the excluded items. Adjusted EBIT is one of the measures management uses for planning and budgeting, monitoring and evaluating financial and operating results and as a performance metric in the Company's incentive compensation plan. We do not provide reconciliations for adjusted EBIT on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Adjusted EBIT margin is defined by the Company as adjusted EBIT divided by net sales. Adjusted EBIT margin has the same uses and limitations as adjusted EBIT. Operating EBITDA is a performance measure used by the Company and is defined by the Company as net earnings (loss) attributable to Celanese Corporation, plus (earnings) loss from discontinued operations, less interest income, plus interest expense, plus refinancing expense, taxes and depreciation and amortization, and further adjusted for Certain Items, which Certain Items include accelerated depreciation and amortization expense. Operating EBITDA is equal to adjusted EBIT plus depreciation and amortization. We believe that operating EBITDA provides transparent and useful information to investors, analysts and other parties in evaluating our operating performance relative to our peer companies. We do not provide reconciliations for operating EBITDA on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Operating EBITDA margin is defined by the Company as operating EBITDA divided by net sales. Operating EBITDA margin has the same uses and limitations as operating EBITDA. Operating profit (loss) attributable to Celanese Corporation is defined by the Company as operating profit (loss), less earnings (loss) attributable to noncontrolling interests ("NCI"). We believe that operating profit (loss) attributable to Celanese Corporation provides transparent and useful information to management, investors, analysts and other parties in evaluating our core operational performance. Operating margin attributable to Celanese Corporation is defined by the Company as operating profit (loss) attributable to Celanese Corporation divided by net sales. Operating margin attributable to Celanese Corporation has the same uses and limitations as operating profit (loss) attributable to Celanese Corporation. Adjusted earnings per share is a performance measure used by the Company and is defined by the Company as earnings (loss) from continuing operations attributable to Celanese Corporation, adjusted for income tax (provision) benefit, Certain Items, and refinancing and related expenses, divided by the number of basic common shares and dilutive restricted stock units and stock options calculated using the treasury method. We believe that adjusted earnings per share provides transparent and useful information to management, investors, analysts and other parties in evaluating and assessing our primary operating results from period-to-period after removing the impact of the above stated items that affect comparability and as a performance metric in the Company's incentive compensation plan. We do not provide reconciliations for adjusted earnings per share on a forward-looking basis (including those contained in this document) when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of Certain Items, such as mark-to-market pension gains and losses, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Note: The income tax expense (benefit) on Certain Items ("Non-GAAP adjustments") is determined using the applicable rates in the taxing jurisdictions in which the Non-GAAP adjustments occurred and includes both current and deferred income tax expense (benefit). The income tax rate used for adjusted earnings per share approximates the midpoint in a range of forecasted tax rates for the year. This range may include certain partial or full-year forecasted tax opportunities and related costs, where applicable, and specifically excludes changes in uncertain tax positions, discrete recognition of GAAP items on a quarterly basis, other pre-tax items adjusted out of our GAAP earnings for adjusted earnings per share purposes and changes in management's assessments regarding the ability to realize deferred tax assets for GAAP. In determining the adjusted earnings per share tax rate, we reflect the impact of foreign tax credits when utilized, or expected to be utilized, absent discrete events impacting the timing of foreign tax credit utilization. We analyze this rate quarterly and adjust it if there is a material change in the range of forecasted tax rates; an updated forecast would not necessarily result in a change to our tax rate used for adjusted earnings per share. The adjusted tax rate is an estimate and may differ from the actual tax rate used for GAAP reporting in any given reporting period. Table 3a summarizes the reconciliation of our estimated GAAP effective tax rate to the adjusted tax rate. The estimated GAAP rate excludes discrete recognition of GAAP items due to our inability to forecast such items. As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate to the adjusted tax rate for actual results. Free cash flow is a liquidity measure used by the Company and is defined by the Company as net cash provided by (used in) operations, less capital expenditures on property, plant and equipment, and adjusted for contributions from or distributions to our NCI joint ventures. We believe that free cash flow provides useful information to management, investors, analysts and other parties in evaluating the Company's liquidity and credit quality assessment because it provides an indication of the long-term cash generating ability of our business. Although we use free cash flow as a measure to assess the liquidity generated by our business, the use of free cash flow has important limitations, including that free cash flow does not reflect the cash requirements necessary to service our indebtedness, lease obligations, unconditional purchase obligations or pension and postretirement funding obligations. Free cash flow is not a measure of cash available for discretionary expenditures since the Company has certain debt service and finance lease payments that are not deducted from that measure. We do not provide reconciliations for free cash flow on a forward-looking basis when we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of items such as working capital changes, fluctuations in foreign currency exchange rates, the impact and timing of potential acquisitions and divestitures, and other structural changes, that have not yet occurred, are out of our control and/or cannot be reasonably predicted. For the same reasons, we are unable to address the probable significance of the unavailable information. Net debt is defined by the Company as total debt less cash and cash equivalents. We believe that net debt provides useful information to management, investors, analysts and other parties in evaluating changes to the Company's capital structure and credit quality assessment. Return on invested capital (adjusted) is defined by the Company as adjusted EBIT, tax effected using the adjusted tax rate, divided by the sum of the average of beginning and end of the year short- and long-term debt and Celanese Corporation shareholders' equity. We believe that return on invested capital (adjusted) provides useful information to management, investors, analysts and other parties in order to assess our income generation from the point of view of our shareholders and creditors who provide us with capital in the form of equity and debt and whether capital invested in the Company yields competitive returns. Supplemental Information
Supplemental Information we believe to be of interest to investors, analysts and other parties includes the following:
Net sales for each of our business segments and the percentage increase or decrease in net sales attributable to price, volume, currency and other factors for each of our business segments. Cash dividends received from our equity investments. For those consolidated ventures in which the Company owns or is exposed to less than 100% of the economics, the outside shareholders' interests are shown as NCI. Amounts referred to as "attributable to Celanese Corporation" are net of any applicable NCI. Results Unaudited
The results in this document, together with the adjustments made to present the results on a comparable basis, have not been audited and are based on internal financial data furnished to management. Quarterly results should not be taken as an indication of the results of operations to be reported for any subsequent period or for the full fiscal year.
Beginning with the reporting period ending June 30, 2026, the Company revised its presentation of Equity Earnings and Dividend Income Attributable to Celanese Corporation. Previously, Other Income (Expense) Attributable to Celanese Corporation was included with the presentation of Equity Earnings and Dividend Income Attributable to Celanese Corporation. To provide a better understanding for readers of the U.S. GAAP results of the Company’s non-consolidated equity investments by presenting such results in isolation and better align with how management assesses such results, Other Income (Expense) Attributable to Celanese Corporation is now included with Non-Operating Pension, Other Post-Retirement Employee Benefit (Expense) Income Attributable to Celanese Corporation. Prior periods presented have been revised to reflect this change.
Certain prior period amounts have been revised to correct for certain prior period immaterial errors. See Note 1 to our Quarterly Report on Form 10-Q for the quarterly period ending June 30, 2026.
Table 1
Adjusted EBIT and Operating EBITDA - Reconciliation of Non-GAAP Measures - Unaudited
Q2 '26
Q1 '26
2025
Q4 '25
Q3 '25
Q2 '25
Q1 '25
(In $ millions)
Net earnings (loss) attributable to Celanese Corporation
125
44
(1,165
)
19
(1,357
)
197
(24
)
(Earnings) loss from discontinued operations
2
1
21
6
—
10
5
Interest income
(10
)
(9
)
(24
)
(6
)
(7
)
(7
)
(4
)
Interest expense
186
183
701
177
177
177
170
Refinancing expense
—
—
68
36
—
—
32
Income tax provision (benefit)
11
33
(90
)
(15
)
(7
)
(77
)
9
Certain Items attributable to Celanese Corporation (Table 8)
156
23
1,639
34
1,520
42
43
Adjusted EBIT
470
275
1,150
251
326
342
231
Depreciation and amortization expense(1)
179
180
743
184
191
188
180
Operating EBITDA
649
455
1,893
435
517
530
411
Q2 '26
Q1 '26
2025
Q4 '25
Q3 '25
Q2 '25
Q1 '25
(In $ millions)
Engineered Materials
43
3
6
1
3
2
—
Acetyl Chain
22
18
11
11
—
—
—
Other Activities(2)
—
—
—
—
—
—
—
Accelerated depreciation and amortization expense
65
21
17
12
3
2
—
Depreciation and amortization expense(1)
179
180
743
184
191
188
180
Total depreciation and amortization expense
244
201
760
196
194
190
180
Table 2
Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited
Q2 '26
Q1 '26
2025
Q4 '25
Q3 '25
Q2 '25
Q1 '25
(In $ millions, except percentages)
Operating Profit (Loss) / Operating Margin
Engineered Materials
156
10.8
%
221
16.7
%
(958
)
(17.8
)%
111
8.7
%
(1,327
)
(95.9
)%
164
11.4
%
94
7.3
%
Acetyl Chain
237
17.8
%
95
9.2
%
539
12.7
%
90
9.6
%
135
12.7
%
153
13.7
%
161
14.4
%
Other Activities(1)
(117
)
(102
)
(367
)
(108
)
(83
)
(86
)
(90
)
Total
276
10.0
%
214
9.2
%
(786
)
(8.2
)%
93
4.2
%
(1,275
)
(52.7
)%
231
9.1
%
165
6.9
%
Less: Net Earnings (Loss) Attributable to NCI for Engineered Materials
2
2
6
—
3
1
2
Less: Net Earnings (Loss) Attributable to NCI for Acetyl Chain
2
2
8
3
1
2
2
Operating Profit (Loss) Attributable to Celanese Corporation
272
9.9
%
210
9.0
%
(800
)
(8.4
)%
90
4.1
%
(1,279
)
(52.9
)%
228
9.0
%
161
6.7
%
Operating Profit (Loss) / Operating Margin Attributable to Celanese Corporation
Engineered Materials
154
10.7
%
219
16.5
%
(964
)
(17.9
)%
111
8.7
%
(1,330
)
(96.1
)%
163
11.3
%
92
7.1
%
Acetyl Chain
235
17.7
%
93
9.0
%
531
12.5
%
87
9.3
%
134
12.6
%
151
13.5
%
159
14.2
%
Other Activities(1)
(117
)
(102
)
(367
)
(108
)
(83
)
(86
)
(90
)
Total
272
9.9
%
210
9.0
%
(800
)
(8.4
)%
90
4.1
%
(1,279
)
(52.9
)%
228
9.0
%
161
6.7
%
Equity Earnings and Dividend Income Attributable to Celanese Corporation
Engineered Materials
6
(2)
31
105
32
33
24
16
Acetyl Chain
44
2
131
42
43
43
3
Other Activities(1)
4
3
13
3
3
3
4
Total
54
36
249
77
79
70
23
Non-Operating Pension, Other Post-Retirement Employee Benefit and Other Income (Expense) Attributable to Celanese Corporation
Engineered Materials
(16
)
1
7
3
2
1
1
Acetyl Chain
—
—
1
—
1
—
—
Other Activities(1)
4
5
54
47
3
1
3
Total
(12
)
6
62
50
6
2
4
Certain Items Attributable to Celanese Corporation (Table 8)
Engineered Materials
90
(31
)
1,572
37
1,495
25
15
Acetyl Chain
42
36
32
17
9
1
5
Other Activities(1)
24
18
35
(20
)
16
16
23
Total
156
23
1,639
34
1,520
42
43
Adjusted EBIT / Adjusted EBIT Margin
Engineered Materials
234
16.2
%
220
16.6
%
720
13.4
%
183
14.3
%
200
14.5
%
213
14.8
%
124
9.6
%
Acetyl Chain
321
24.2
%
131
12.6
%
695
16.4
%
146
15.5
%
187
17.6
%
195
17.5
%
167
15.0
%
Other Activities(1)
(85
)
(76
)
(265
)
(78
)
(61
)
(66
)
(60
)
Total
470
17.1
%
275
11.8
%
1,150
12.0
%
251
11.4
%
326
13.5
%
342
13.5
%
231
9.7
%
Table 2
Supplemental Segment Data and Reconciliation of Segment Adjusted EBIT and Operating EBITDA - Non-GAAP Measures - Unaudited (cont.)
Q2 '26
Q1 '26
2025
Q4 '25
Q3 '25
Q2 '25
Q1 '25
(In $ millions, except percentages)
Depreciation and Amortization Expense(1)
Engineered Materials
101
104
441
105
115
112
109
Acetyl Chain
64
63
252
64
63
64
61
Other Activities(2)
14
13
50
15
13
12
10
Total
179
180
743
184
191
188
180
Operating EBITDA / Operating EBITDA Margin
Engineered Materials
335
23.2
%
324
24.5
%
1,161
21.5
%
288
22.6
%
315
22.8
%
325
22.5
%
233
18.1
%
Acetyl Chain
385
29.0
%
194
18.7
%
947
22.4
%
210
22.3
%
250
23.6
%
259
23.2
%
228
20.4
%
Other Activities(2)
(71
)
(63
)
(215
)
(63
)
(48
)
(54
)
(50
)
Total
649
23.6
%
455
19.5
%
1,893
19.8
%
435
19.7
%
517
21.4
%
530
20.9
%
411
17.2
%
Table 3
Adjusted Earnings (Loss) per Share - Reconciliation of a Non-GAAP Measure - Unaudited
Q2 '26
Q1 '26
2025
Q4 '25
Q3 '25
Q2 '25
Q1 '25
per share
per share
per share
per share
per share
per share
per share
(In $ millions, except per share data)
Earnings (loss) from continuing operations attributable to Celanese Corporation
127
1.15
45
0.41
(1,144
)
(10.44
)
25
0.23
(1,357
)
(12.39
)
207
1.89
(19
)
(0.17
)
Income tax provision (benefit)
11
33
(90
)
(15
)
(7
)
(77
)
9
Earnings (loss) from continuing operations before tax
138
78
(1,234
)
10
(1,364
)
130
(10
)
Certain Items attributable to Celanese Corporation (Table 8)
156
23
1,639
34
1,520
42
43
Refinancing and related expenses
—
—
68
36
—
—
32
Adjusted earnings (loss) from continuing operations before tax
294
101
473
80
156
172
65
Income tax (provision) benefit on adjusted earnings(1)
(24
)
(8
)
(36
)
(6
)
(9
)
(15
)
(6
)
Adjusted earnings (loss) from continuing operations(2)
270
2.45
93
0.85
437
3.98
74
0.67
147
1.34
157
1.43
59
0.54
Diluted shares (in millions)(3)
Weighted average shares outstanding
109.8
109.7
109.5
109.6
109.6
109.5
109.4
Incremental shares attributable to equity awards
0.4
0.3
0.2
0.2
—
0.2
—
Total diluted shares
110.2
110.0
109.7
109.8
109.6
109.7
109.4
Q2 '26
Q1 '26
2025
Q4 '25
Q3 '25
Q2 '25
Q1 '25
Adjusted effective tax rate
8
8
8
8
6
9
9
Actual Plan
Asset Returns
Expected
Plan Asset
Returns
(In percentages)
2025
7.8
5.3
Table 3a
Adjusted Tax Rate - Reconciliation of a Non-GAAP Measure - Unaudited
Estimated
Actual
2026
2025
(In percentages)
U.S. GAAP annual effective tax rate
21
7
Discrete quarterly recognition of GAAP items(1)
(2
)
17
Tax impact of other charges and adjustments(2)
(3
)
(12
)
Utilization of foreign tax credits
(5
)
—
Changes in valuation allowances, excluding impact of other charges and adjustments(3)
2
(12
)
Other, includes effect of discrete current year transactions(4)
(5
)
8
Adjusted tax rate
8
8
____________________
Note: As part of the year-end reconciliation, we will update the reconciliation of the GAAP effective tax rate for actual results.
(1) Such as changes in tax laws (including U.S. tax reform), deferred taxes on outside basis differences, changes in uncertain tax positions and prior year audit adjustments.
(2) Reflects the tax impact on pre-tax adjustments presented in Certain Items (Table 8), which are excluded from pre-tax income for adjusted earnings per share purposes.
(3) Reflects changes in valuation allowances related to changes in judgment regarding the realizability of deferred tax assets or current year operations, excluding other charges and adjustments.
(4) Includes tax impacts related to full-year actual tax opportunities and related costs, as well as current year realization of U.S. GAAP benefits deferred in prior years.
Table 4
Net Sales by Segment - Unaudited
Q2 '26
Q1 '26
2025
Q4 '25
Q3 '25
Q2 '25
Q1 '25
(In $ millions)
Engineered Materials
1,446
1,325
5,390
1,277
1,384
1,442
1,287
Acetyl Chain
1,329
1,036
4,232
940
1,061
1,115
1,116
Intersegment eliminations(1)
(23
)
(24
)
(78
)
(13
)
(26
)
(25
)
(14
)
Net sales
2,752
2,337
9,544
2,204
2,419
2,532
2,389
Table 4a
Factors Affecting Segment Net Sales Sequentially - Unaudited
Three Months Ended June 30, 2026 Compared to Three Months Ended March 31, 2026
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
3
6
—
9
(1)
Acetyl Chain
6
22
—
28
Total Company
4
14
—
18
Three Months Ended March 31, 2026 Compared to Three Months Ended December 31, 2025
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
3
—
1
4
Acetyl Chain
8
1
1
10
Total Company
5
—
1
6
Three Months Ended December 31, 2025 Compared to Three Months Ended September 30, 2025
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(6
)
(2
)
—
(8
)
Acetyl Chain
(10
)
(1
)
—
(11
)
Total Company
(7
)
(2
)
—
(9
)
Three Months Ended September 30, 2025 Compared to Three Months Ended June 30, 2025
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(6
)
1
1
(4
)
Acetyl Chain
(2
)
(4
)
1
(5
)
Total Company
(4
)
(1
)
1
(4
)
Three Months Ended June 30, 2025 Compared to Three Months Ended March 31, 2025
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
9
—
3
12
Acetyl Chain
(1
)
(2
)
3
—
Total Company
4
(1
)
3
6
Three Months Ended March 31, 2025 Compared to Three Months Ended December 31, 2024
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
—
2
(1
)
1
Acetyl Chain
3
(1
)
(1
)
1
Total Company
2
—
(1
)
1
Table 4b Factors Affecting Segment Net Sales Year Over Year - Unaudited
Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(6
)
5
1
—
(1)
Acetyl Chain
—
18
1
19
Total Company
(3
)
11
1
9
Three Months Ended March 31, 2026 Compared to Three Months Ended March 31, 2025
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
—
(1
)
4
3
Acetyl Chain
(7
)
(4
)
4
(7
)
Total Company
(3
)
(3
)
4
(2
)
Three Months Ended December 31, 2025 Compared to Three Months Ended December 31, 2024
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(2
)
—
3
1
Acetyl Chain
(10
)
(7
)
2
(15
)
Total Company
(6
)
(3
)
2
(7
)
Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(8
)
(1
)
2
(7
)
Acetyl Chain
(4
)
(8
)
1
(11
)
Total Company
(6
)
(4
)
1
(9
)
Three Months Ended June 30, 2025 Compared to Three Months Ended June 30, 2024
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(3
)
(1
)
2
(2
)
Acetyl Chain
(2
)
(7
)
2
(7
)
Total Company
(2
)
(4
)
2
(4
)
Three Months Ended March 31, 2025 Compared to Three Months Ended March 31, 2024
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(4
)
(2
)
(1
)
(7
)
Acetyl Chain
(6
)
(4
)
(1
)
(11
)
Total Company
(5
)
(3
)
(1
)
(9
)
Table 4c Factors Affecting Segment Net Sales Year Over Year - Unaudited
Year Ended December 31, 2025 Compared to Year Ended December 31, 2024
Volume
Price
Currency
Total
(In percentages)
Engineered Materials
(4
)
(1
)
1
(4
)
Acetyl Chain
(6
)
(6
)
1
(11
)
Total Company
(4
)
(4
)
1
(7
)
Table 5 Free Cash Flow - Reconciliation of a Non-GAAP Measure - Unaudited
Q2 '26
Q1 '26
2025
Q4 '25
Q3 '25
Q2 '25
Q1 '25
(In $ millions, except percentages)
Net cash provided by (used in) investing activities
(59
)
425
(349
)
(104
)
(59
)
(88
)
(98
)
Net cash provided by (used in) financing activities
(546
)
(3
)
(513
)
(324
)
(118
)
(116
)
45
Net cash provided by (used in) operating activities
209
76
1,146
252
447
410
37
Capital expenditures on property, plant and equipment
(62
)
(66
)
(343
)
(84
)
(64
)
(93
)
(102
)
Contributions from/(Distributions) to NCI
(7
)
(7
)
(30
)
(8
)
(8
)
(6
)
(8
)
Free cash flow(1)
140
3
773
160
375
311
(73
)
Net sales
2,752
2,337
9,544
2,204
2,419
2,532
2,389
Free cash flow as % of Net sales
5.1
%
0.1
%
8.1
%
7.3
%
15.5
%
12.3
%
(3.1
)%
Table 6
Cash Dividends Received - Unaudited
Q2 '26
Q1 '26
2025
Q4 '25
Q3 '25
Q2 '25
Q1 '25
(In $ millions)
Dividends from equity method investments
16
54
139
47
40
21
31
Dividends from equity investments without readily determinable fair values
43
1
122
40
40
41
1
Total
59
55
261
87
80
62
32
Table 7
Net Debt - Reconciliation of a Non-GAAP Measure - Unaudited
Q2 '26
Q1 '26
2025
Q4 '25
Q3 '25
Q2 '25
Q1 '25
(In $ millions)
Short-term borrowings and current installments of long-term debt - third party and affiliates
1,311
1,741
1,204
1,204
1,199
252
406
Long-term debt, net of unamortized deferred financing costs
10,696
10,813
11,394
11,394
11,655
12,689
12,378
Total debt
12,007
12,554
12,598
12,598
12,854
12,941
12,784
Cash and cash equivalents
(1,364
)
(1,758
)
(1,263
)
(1,263
)
(1,440
)
(1,173
)
(951
)
Net debt
10,643
10,796
11,335
11,335
11,414
11,768
11,833
Table 8
Certain Items - Unaudited
The following Certain Items attributable to Celanese Corporation are included in Net earnings (loss) and are adjustments to non-GAAP measures:
Q2 '26
Q1 '26
2025
Q4 '25
Q3 '25
Q2 '25
Q1 '25
Income Statement Classification
(In $ millions)
Exit and shutdown costs
121
44
98
29
10
27
32
Cost of sales / SG&A / Other (charges) gains, net / Gain (loss) on disposition of businesses and assets, net / Non-operating pension and other postretirement employee benefit (expense) income
Asset impairments
—
—
1,513
27
(1)
1,486
(2)
—
—
Cost of sales / Other (charges) gains, net
Impact from plant incidents and natural disasters
—
11
3
—
—
—
3
Cost of sales
Mergers, acquisitions and dispositions
35
15
52
23
12
12
5
Cost of sales / SG&A
Actuarial (gain) loss on pension and postretirement plans
—
—
(49
)
(49
)
—
—
—
Cost of sales / SG&A / Non-operating pension and other postretirement employee benefit (expense) income
Legal settlements and commercial disputes
4
3
17
1
11
2
3
Cost of sales / SG&A / Other (charges) gains, net
(Gain) loss on disposition of businesses and assets
(4
)
(50
)
—
—
—
—
—
Gain (loss) on disposition of businesses and assets, net
Other
—
—
5
3
1
1
—
Cost of sales / SG&A
Certain Items attributable to Celanese Corporation
156
23
1,639
34
1,520
42
43
Table 9
Return on Invested Capital (Adjusted) - Presentation of a Non-GAAP Measure - Unaudited
2025
(In $ millions, except percentages)
Net earnings (loss) attributable to Celanese Corporation
(1,165
)
Adjusted EBIT (Table 1)
1,150
Adjusted effective tax rate (Table 3a)
8
%
Adjusted EBIT tax effected
1,058
2025
2024
Average
(In $ millions, except percentages)
Short-term borrowings and current installments of long-term debt - third parties and affiliates
1,204
1,501
1,353
Long-term debt, net of unamortized deferred financing costs
11,394
11,078
11,236
Celanese Corporation shareholders' equity
4,049
5,129
4,589
Invested capital
17,178
Return on invested capital (adjusted)
6.2
%
Net earnings (loss) attributable to Celanese Corporation as a percentage of invested capital
Zakladatel Aave Stani Kulechov ostře kritizoval návrh EIP, který by při podílu stakovaného ETH nad 50 % z celkové nabídky snížil výnos ze stakingu na 0 %. Varuje, že by to poškodilo Ethereum, DeFi i institucionální adopci.
Aave founder and CEO Stani Kulechov has spoken out against the EIP proposal, which has surfaced within the Ethereum community and aims to limit staking returns. Kulechov argued that the regulation would not deliver the intended results and could instead harm the Ethereum ecosystem and ETH’s attractiveness as an investment asset.
The proposal envisages reducing the staking return to 0% if the staked ETH ratio exceeds 50% of the total supply. According to Kulechov, this structure could make staking revenues unpredictable, rendering the activity uneconomical for many participants.
Aave CEO Kulechov stated that institutional investors, in particular, value predictable cash flows when building ETH positions. He noted that if returns become uncertain, these investors might turn to alternative blockchain networks offering more stable income, which could create a significant adoption cost for Ethereum.
Kulechov also argued that reducing staking yields to zero would render lending and yield strategies conducted via ETH largely ineffective. In such a scenario, he stated, the primary use case for ETH borrowing might be limited to short selling.
Kulechov stated that investors using ETH-linked yield products might turn to stablecoins or other interest-bearing assets, suggesting that the proposal could significantly shrink Ethereum-based lending and yield markets.
In his personal assessment, Kulechov stated that the proposal would weaken ETH’s viability as an asset and limit its long-term potential. Expressing his hope that the proposal would not proceed, the Aave CEO said that otherwise, many market participants might shift their interest to other blockchain networks.
Kulechov argued that Ethereum should not be penalized for its growth, noting that any changes to the network’s economic incentive structure should be carefully considered in terms of their impact on DeFi, staking, and institutional adoption.
*This is not investment advice.
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Viasat oznámil zisk 17 centů na akcii, nad odhadem ztráty 30 centů, ale tržby 1,16 miliardy USD zaostaly za očekáváním 1,2 miliardy USD. Akcie VSAT v prodlouženém obchodování klesly o 7,66 %.
VSAT stock is moving. Watch the price action here. Viasat Q2 Details Viasat reported quarterly earnings of 17 cents per share, which beat the consensus estimate for losses of 30 cents, according to Benzinga Pro data.
Quarterly revenue came in at $1.16 billion, which missed the Street estimate of $1.2 billion and was down from $1.17 billion in the same period last year.
Viasat said the revenue decline primarily reflected a 4% year-over-year decrease in the Defense and Advanced Technology segment, while the Communication Services segment revenue remained flat year-over-year.
“The first quarter of fiscal year 2027 was marked by disciplined execution, operational progress — including on the ViaSat-3 (VS-3) satellites — and strong awards in growing business areas that reinforce our confidence in targeting new markets, our competitive positions, and our ongoing growth prospects,” said CEO Mark Dankberg.
VSAT Stock Price Activity: According to data from Benzinga Pro, Viasat stock was down 7.66% to $79.56 in Tuesday’s extended trading.
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Second Quarter 2026 Revenues of $458.8 Million Reflect 19.1 Percent Organic Growth and 30.5 Percent Growth Over Second Quarter 2025 Revenues of $351.5 Million
Kratos Government Solutions Second Quarter 2026 Revenues of $379.7 Million Reflect 22.0 Percent Organic Growth and 36.4 Percent Growth Over Second Quarter 2025 Revenues of $278.3 Million
Unmanned Systems Second Quarter 2026 Revenues of $79.1 Million Reflect 8.1 Percent Organic Growth Over Second Quarter 2025 Revenues of $73.2 Million
Second Quarter 2026 Consolidated Book to Bill Ratio of 1.1 to 1 and Bookings of $492.2 Million
Last Twelve Months Ended June 28, 2026, Consolidated Book to Bill Ratio of 1.3 to 1 and Bookings of $1.990 Billion
Increases Full Year 2026 Revenue Guidance to $1.750 to $1.810 Billion, With Forecasted Organic Revenue Growth of Approximately 18 Percent to 23 Percent as Compared to Full Year 2025
SAN DIEGO,Calif., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), a leader in defense, national security and global markets, today reported its second quarter 2026 financial results, including Revenues of $458.8 million, Operating Loss of $1.6 million, Net Income of $4.4 million, Adjusted EBITDA of $38.2 million and a consolidated book to bill ratio of 1.1 to 1.0.
Second quarter 2026 Net Income and Operating Income includes non-cash stock compensation expense of $16.3 million, Company-funded Research and Development (R&D) expense of $13.6 million, including efforts in our Space, Satellite, Unmanned Systems and Microwave Electronic businesses, and non-cash amortization expense of $12.5 million.
Kratos reported in the second quarter 2026 GAAP Net Income of $4.4 million and GAAP Net Income per share of $0.02, compared to GAAP Net Income of $2.9 million and GAAP Net Income per share of $0.02, for the second quarter of 2025. Adjusted earnings per share (EPS) were $0.21 for the second quarter of 2026, compared to $0.11 for the second quarter of 2025.
Second quarter 2026 Revenues of $458.8 million increased $107.3 million, reflecting 30.5 percent growth and 19.1 percent organic growth from second quarter 2025 Revenues of $351.5 million. Organic revenue growth was reported in our Unmanned Systems (KUS) segment of 8.1 percent and in our Government Solutions (KGS) segment of 22.0 percent. The most notable growth in our KGS Segment was in our Defense Rocket Systems, Turbine Technologies, Microwave Products and Space, Training and Cyber businesses, with organic revenue growth rates of 50.2 percent, 43.3 percent, 29.5 percent and 8.7 percent, respectively, compared to the second quarter of 2025.
Second quarter 2026 Cash Flow Used in Operations was $11.0 million, primarily reflecting the working capital requirements related to the 30.5 percent revenue growth impacting our receivables, and also including increases in inventory balances related to ramps in production and investments we are making related to certain development initiatives. Free Cash Flow Used in Operations for the second quarter of 2026 was $18.9 million after funding $17.2 million of capital expenditures, and net of cash received of $9.3 million for the sale of company-owned Valkyries.
For the second quarter of 2026, KUS generated Revenues of $79.1 million, compared to $73.2 million in the second quarter of 2025, with the increase primarily driven by Valkyrie-related activity. KUS’s Operating Income was $1.2 million in the second quarter of 2026, compared to an Operating Loss of $0.3 million in the second quarter of 2025. KUS’s Adjusted EBITDA for the second quarter of 2026 was $5.1 million, compared to $3.6 million for the second quarter of 2025, reflecting the impact of the revenue volume and mix. KUS’s book-to-bill ratio for the second quarter of 2026 was 1.0 to 1.0 and 1.1 to 1.0 for the twelve months ended June 28, 2026, with bookings of $78.4 million for the three months ended June 28, 2026, and bookings of $354.4 million for the twelve months ended June 28, 2026. Total backlog for KUS at the end of the second quarter of 2026 was $374.6 million, compared to $375.4 million at the end of the first quarter of 2026.
For the second quarter of 2026, our KGS segment Revenues of $379.7 million increased from Revenues of $278.3 million in the second quarter of 2025, reflecting a 36.4 percent increase and a 22.0 percent organic growth rate, excluding the impact of the Nomad Global Communication Solutions (Nomad) and Orbit Technologies Ltd (Orbit) acquisitions. The increased Revenues includes organic revenue growth across our Defense and Rocket Support business, Turbine Technologies, Microwave Products and Space, Training and Cyber businesses, with organic revenue growth rates of 50.2 percent, 43.3 percent, 29.5 percent and 8.7 percent, respectively, over the second quarter of 2025.
KGS reported Operating Income of $14.3 million in the second quarter of 2026 compared to $12.6 million in the second quarter of 2025, primarily reflecting increased volume and mix in revenues. Second quarter 2026 KGS Adjusted EBITDA was $33.1 million, compared to second quarter 2025 KGS Adjusted EBITDA of $24.7 million, primarily reflecting the volume and mix in revenues and resources.
KGS reported a book-to-bill ratio of 1.1 to 1.0 for the second quarter of 2026, a book-to-bill ratio of 1.4 to 1.0 for the last twelve months ended June 28, 2026, and bookings of $413.8 million and $1.636 billion for the three and last twelve months ended June 28, 2026, respectively. KGS’s total backlog was $1.710 billion at the end of the second quarter of 2026, compared to $1.676 billion at the end of the first quarter of 2026.
Kratos reported consolidated bookings of $492.2 million and a book-to-bill ratio of 1.1 to 1.0 for the second quarter of 2026, and consolidated bookings of $1.990 billion and a book-to-bill ratio of 1.3 to 1.0 for the last twelve months ended June 28, 2026. Consolidated backlog was $2.084 billion on June 28, 2026, as compared to $2.051 billion on March 29, 2026. Kratos’ bid and proposal pipeline was $15.0 billion at June 28, 2026, as compared to $14.3 billion on March 29, 2026. Backlog on June 28, 2026, included funded backlog of $1.572 billion and unfunded backlog of $512.7 million.
Eric DeMarco, Kratos’ President and CEO, said, “Kratos’ second quarter results are reflective of the execution of the Kratos team and that our strategy, including making internally funded investments to be first-to-market with relevant hardware and software, that is engineered up front for affordable mass production, at scale, is aligned with the Department of War’s priorities. Representative of this alignment is Kratos’ last 12 month book-to-bill ratio of 1.3 to 1.0, the number of opportunities for Kratos continuing to increase as evidenced in our bid and proposal pipeline of $15 billion, and our business momentum expected to accelerate in the second half of 2026 and into 2027.”
Mr. DeMarco continued, “Kratos’ second quarter year over year organic growth rate was 19.1 percent, we are now forecasting third quarter organic growth of approximately 19 percent to 25 percent, and for fourth quarter organic growth of approximately 19 percent to 31 percent. As a result, we have increased our full year 2026 organic revenue growth forecast up to approximately 18 percent to 23 percent as compared to full year 2025, which now also includes an expectation of approximately 10 percent organic growth for our Unmanned Systems business based upon recent contract awards, including Valkyrie.”
Mr. DeMarco concluded, “Kratos’ EBITDA margins are also increasing, and are forecast to continue to increase in the second half of 2026 and into 2027, as the business scales, production increases and we realize financial leverage on our fixed cost infrastructure. We are generating and forecasting for increased margins irrespective of increased costs as we pursue large new opportunities with the Department of War and the strength of the Shekel adversely impacting our Israel operations profitability, where we now have over 700 personnel. Expected future growth areas for Kratos include; hypersonic and rocket systems, missiles, jet engines, space and satellite communications.”
Financial Guidance
We are providing our initial third quarter guidance and increasing our full year 2026 Revenue guidance and tightening our Adjusted EBITDA guidance, and our assumptions, including as related to: current forecasted business mix, expected employee sourcing, hiring and retention; potential manufacturing, production and supply chain disruptions; potential parts shortages and related continued significant cost and price increases in each of these areas, which are impacting the industry and Kratos. We continue to make significant investments in bid, proposal and other new program opportunity areas, and increasing staffing to enable us to ramp production levels, all of which is currently adversely impacting our profit margins and free cash flow generation. We are also making significant investments in inventory, property, plant, equipment and facilities, consistent with the Department of War’s National Security Strategy and its stated expectations of U.S. National Security government contractors. These investments are expected to continue at least into Kratos’ fiscal year 2027, as our opportunity pipeline continues to increase.
Kratos’ revised cash flow guidance also assumes certain investments in our Rocket Systems and Unmanned Systems businesses, related to the procurement of rocket motors and related systems, and has been updated to include the working capital requirements related to the procurement of the materials and equipment in the third and fourth quarters to ramp our production of jet engines to 3,000 in 2027 to address the demand for engines for small cruise missiles, and our plan to begin producing approximately 40 Valkyries annually beginning by the beginning of 2028, as well as the completion of certain of our unmanned systems and related derivatives and vehicles. Additional forecasted investments in 2026 include our funding of the Prometheus joint venture, our Anaconda radar program, our Helios hypersonic and arc chamber program, our Indiana hypersonic integration facility, our Birmingham advanced manufacturing facility for hypersonic systems, expansion and new microwave electronics facilities in Israel and the U.S., our GEK and BladeWorks engine facilities, the continued build of our second lot of 12 Valkyrie aircraft, certain manufacturing and production related equipment for our recently acquired Nomad acquisition, certain drone-related investments, and our Vulcan, Kraken, Elysium, Nemesis, Hermes and other initiatives. The revised forecast for our estimated FY26 capital expenditure spend includes the shift in timing of construction and procurement of related machinery and equipment, to remove certain expenditures which are now funded under customer contract, and a shift in classification of investments for various drone opportunities which will be classified as a use of working capital in our Operating Cash Flow as work in process rather than capital expenditures when incurred. In summary, Kratos continues to make the required investments to support the rebuild of the U.S. defense industrial base and related infrastructure consistent with the Department of War’s direction, take advantage of the ongoing generational recapitalization of strategic and other weapon and National Security related systems, and generate value for all Kratos stakeholders, including the warfighter and Kratos shareholders.
$MQ326FY26 Revenues$460 - $480$1,750 - $1,810R&D$13 - $15$50 - $53Operating Income$1 - $4$16 - $22Depreciation$11 - $12$48 - $50Amortization$12 - $13$43 - $46Stock Based Compensation$16 - $17$60 - $64Adjusted EBITDA$40 - $45$173 - $176 Operating Cash Flow $30 - $50Capital Expenditures $125 - $135Free Cash Flow Use ($85 - $105) FY26 Forecasted Investments for New Program and Opportunities ($M)Capital ExpendituresEstimated Spend Program/Opportunity Advanced Manufacturing Facility for Hypersonics/Engines & Test Cell$4-$5 Various Customer OpportunitiesPayload Integration Facility$4-$5 MACH-TB and OtherNomad Plant Improvements and Machinery$8 $9 Various Customer OpportunitiesC5ISR Facility and Machinery$3-$5 Various Air Defense ProgramsBladeWorks Turbo Fan Facility and Test Cells and New Designs$18-$19 Various Engine OpportunitiesMicrowave Products New/Expanded Facilities and Machinery$14-$15 Various Customer OpportunitiesSpace and Satellite Additional Secure Facility Build-Out$7-$8 Various Confidential ProgramsValkyrie Second Production Lot 12 Build$23-$24 Various Customer Opportunities $81-$90 Normal Maintenance Capital Expenditures$44-$45 Total FY26 Forecasted Capital Expenditures$125-$135 Other Investments included in Working Capital (Operating Cash Flow) Rocket System Inventory Build - Zeus/Oriole$40 $45 Various including MACH-TBMaterials and Hardware$13 $14 Various Drone OpportunitiesInventory Purchases for Small Jet Engine Production$19 $21 Various Jet Engine Cruise Missile Opportunities to enable production of 3,000 Jet Engines in 2027Unmanned Systems Initiative/Enhancements3 5 Various Customer Opportunities $75 $85 Estimated Funding for Investments Funding Investment in Prometheus$50 $55 Total FY26 Forecasted Total Investments$250 $275 We expect our second half of fiscal 2026 will have significantly higher Revenue than the first half, as we expect to begin to receive in the second half of 2026 certain long-lead time items related to existing customer funded programs, including solid rocket motors and other hardware related to certain hypersonic and other programs, hardware and components related to jet engine and propulsion system development and production, and hardware related to air defense, missile, radar and other National Security system production. We expect our third quarter Revenues to grow organically 19 to 25 percent from third quarter 2025, with forecasted margin expansion in the third quarter tempered somewhat by increased business development and proposal costs to support the forecasted revenue growth, as well as continued negative foreign currency impacts on our Microwave Products Israeli business, which is adversely impacted by the strength of the Israeli Shekel vs. the US Dollar.
We expect Kratos’ second half of fiscal 2026 Adjusted EBITDA to be greater than our first half as our Revenue increases and Adjusted EBITDA margins expand and are impacted by both expected increased scale and product mix, and customer contract funding is expected to increase coming off of the late 2025 and early 2026 U.S. Government shutdown and extended Continuing Resolution. We continue to expect Kratos’ full year 2026 Adjusted EBITDA margin rates to be approximately 100 bps greater than our reported 2025 Adjusted EBITDA margin rates.
We expect to provide our initial full year 2027 financial guidance when we report our third quarter of fiscal 2026 later this year. We continue to expect our 2027 Adjusted EBITDA margin rates to increase an additional 100 bps above forecast 2026 Adjusted EBITDA margin rates, when we provide full year 2027 guidance later this year.
Management will discuss the Company’s financial results at a conference call beginning at 2:00 p.m. Pacific (5:00 p.m. Eastern) today. The call will be available at www.kratosdefense.com. Participants may register for the call using this On-line Form. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN that can be used to access the call. For those who cannot access the live broadcast, a replay will be available on Kratos’ website.
About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) is a technology, hardware, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field relevant solutions that address our customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and we seek to utilize proven, leading-edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. We believe that Kratos is known as the innovative disruptive change agent in the industry, a company that is an expert in designing products and systems up front for successful rapid, large quantity, low-cost future manufacturing, which is a value-add competitive differentiator for our large traditional prime system integrator partners and also to our government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when we believe our probability of win is high and any investment required by Kratos is within our capital resource comfort level. We intend to partner and team with a large, traditional system integrator when our assessment of probability of win is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include, virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, command, control, communication, computing, combat, intelligence surveillance and reconnaissance (C5ISR) and microwave electronic products for missile, radar, air defense, missile defense, space, satellite, counter unmanned aircraft systems (CUAS), directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter. For more information, visit www.KratosDefense.com and follow Kratos on LinkedIn and X.
Notice Regarding Forward-Looking Statements
This news release contains certain forward-looking statements that involve risks and uncertainties, including, without limitation, express or implied statements concerning the Company’s expectations regarding its future financial performance, including the Company’s expectations for its third quarter, second half, and full year 2026 revenues, R&D, operating income, depreciation, amortization, stock based compensation expense, and Adjusted EBITDA, and full year 2026 operating cash flow, capital expenditures, investments, and free cash flow, forecasted company and business unit organic revenue growth, estimated revenue and organic revenue growth for 2026 and 2027, Adjusted EBITDA margins in 2026 and 2027, future initiation of higher margin programs and negotiation of lower margin contracts which are expected to be renewed in the future, expected future investments in property, plant, facilities, and equipment (including expected investments in the Prometheus joint venture and other programs, opportunities, and initiatives), expected future production of Valkyries, the ability of the Company’s customers to respond to industry and market conditions, the impact of acquired companies and businesses on the Company’s operations and financial condition, the Company’s bid and proposal pipeline and backlog, including the Company’s ability to timely execute on its backlog, demand for its products and services, including the Company’s alignment with today’s National Security requirements and the positioning of its C5ISR and other businesses, ability to successfully compete and expected new customer awards, the impact of federal government shutdowns on the Company’s operations and financial condition, the availability and timing of government funding for the Company’s offerings, availability of an experienced skilled workforce, inflation and increased costs, risks related to potential cybersecurity events or disruptions of our information technology systems, and delays in our financial projections, industry, business and operations, including projected growth. Such statements are only predictions, and the Company’s actual results may differ materially from the results expressed or implied by these statements. Investors are cautioned not to place undue reliance on any such forward-looking statements. All such forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise these statements, whether as a result of new information, future events or otherwise. Factors that may cause the Company’s results to differ include, but are not limited to: risks to our business and financial results related to the reductions and other spending constraints imposed on the U.S. Government and our other customers, including as a result of sequestration and extended continuing resolutions, the Federal budget deficit and Federal government shut-downs; risks of adverse regulatory action or litigation; risks associated with debt leverage; risks that our cost-cutting initiatives will not provide the anticipated benefits; risks that changes, cutbacks or delays in spending by the DoW may occur, which could cause delays or cancellations of key government contracts; risks of delays to or the cancellation of our projects as a result of protest actions submitted by our competitors; risks that changes may occur in Federal government (or other applicable) procurement laws, regulations, policies and budgets; risks of the availability of government funding for the Company's products and services due to performance, cost growth, or other factors, changes in government and customer priorities and requirements (including cost-cutting initiatives, the potential deferral of awards, terminations or reduction of expenditures to respond to the priorities of Congress and the Administration, or budgetary cuts resulting from Congressional committee recommendations or automatic sequestration under the Budget Control Act of 2011, as amended); risks related to tariffs or import duties which could affect the Company’s supply chain and customer affordability; risks related to Executive Orders issued by the Trump Administration and resultant changes to the DoW procurement policies and Federal Acquisition Regulations; risks related to DoW reorganization and DOGE; risks that the unmanned aerial systems and unmanned ground sensor markets do not experience significant growth; risks that products we have developed or will develop will not become programs of record; risks that we cannot expand our customer base or that our products do not achieve broad acceptance which could impact our ability to achieve our anticipated level of growth; risks of increases in the Federal government initiatives related to in-sourcing; risks related to security breaches, including cyber security attacks and threats or other significant disruptions of our information systems, facilities and infrastructures; risks related to our compliance with applicable contracting and procurement laws, regulations and standards; risks related to the new DoW Cybersecurity Maturity Model Certification; risks relating to the ongoing conflict in Ukraine and the Israeli-Palestinian military conflict; risks to our business in Israel including our expanded operations in Israel following the Orbit acquisition; risks related to contract performance; risks related to failure of our products or services; risks associated with our subcontractors’ or suppliers’ failure to perform their contractual obligations, including the appearance of counterfeit or corrupt parts in our products; changes in the competitive environment (including as a result of bid protests); failure to successfully integrate acquired operations and compete in the marketplace, which could reduce revenues and profit margins; risks that potential future goodwill impairments will adversely affect our operating results; risks that anticipated tax benefits will not be realized in accordance with our expectations; risks that a change in ownership of our stock could cause further limitation to the future utilization of our net operating losses; risks that we may be required to record valuation allowances on our net operating losses which could adversely impact our profitability and financial condition; risks that the current economic environment will adversely impact our business, including with respect to our ability to recruit and retain sufficient numbers of qualified personnel to execute on our programs and contracts, as well as expected contract awards and risks related to increasing interest rates; currently unforeseen risks associated with any public health crisis, and risks related to natural disasters or severe weather. These and other risk factors are more fully discussed in the Company’s Annual Report on Form 10-K for the period ended December 28, 2025, and in our other filings made with the Securities and Exchange Commission.
Note Regarding Use of Non-GAAP Financial Measures and Other Performance Metrics
This news release contains non-GAAP financial measures, including organic revenue growth rates computed as the revenue growth rate excluding the current year impact of the contribution from acquisitions, Adjusted EPS (computed using income before income taxes, excluding depreciation, amortization of intangible assets, amortization of capitalized contract and development costs, stock-based compensation expense, acquisition and restructuring related items and other, which includes, but is not limited to, legal related items, non-recoverable rates and costs, and foreign transaction gains and losses, less the estimated impact of current and deferred income taxes) and Adjusted EBITDA (which excludes, among other things, acquisition and restructuring related items, stock compensation expense, foreign transaction gains and losses, and the associated margin rates). Additional non-GAAP financial measures include Free Cash Flow from Operations computed as Cash Flow from Operations less Capital Expenditures plus proceeds from sale of assets and Adjusted EBITDA related to our KUS and KGS businesses. Kratos believes this information is useful to investors because it provides a basis for measuring the Company’s available capital resources, the actual and forecasted operating performance of the Company’s business and the Company’s cash flow, excluding non-recurring items and non-cash items that would normally be included in the most directly comparable measures calculated and presented in accordance with GAAP. The Company’s management uses these non-GAAP financial measures, along with the most directly comparable GAAP financial measures, in evaluating the Company’s actual and forecasted operating performance, capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and investors should carefully evaluate the Company’s financial results calculated in accordance with GAAP and reconciliations to those financial results. In addition, non-GAAP financial measures as reported by the Company may not be comparable to similarly titled amounts reported by other companies. As appropriate, the most directly comparable GAAP financial measures and information reconciling these non-GAAP financial measures to the Company’s financial results prepared in accordance with GAAP are included in this news release.
Another Performance Metric the Company believes is a key performance indicator in our industry is our Book to Bill Ratio as it provides investors with a measure of the amount of bookings or contract awards as compared to the amount of revenues that have been recorded during the period and provides an indicator of how much of the Company’s backlog is being burned or utilized in a certain period. The Book to Bill Ratio is computed as the number of bookings or contract awards in the period divided by the revenues recorded for the same period. The Company believes that the rolling or last twelve months’ Book to Bill Ratio is meaningful since the timing of quarter-to-quarter bookings can vary.
Kratos Defense & Security Solutions, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in millions, except per share data) Three Months Ended
Six Months Ended
June 28, June 29, June 28, June 29, 2026 2025 2026 2025 Service revenues$169.7 $134.9 $303.7 $237.3 Product sales289.1 216.6 526.1 416.8 Total revenues458.8 351.5 829.8 654.1 Cost of service revenues131.6 107.2 230.9 182.9 Cost of product sales227.1 170.5 409.2 323.8 Total costs358.7 277.7 640.1 506.7 Gross profit - service revenues38.1 27.7 72.8 54.4 Gross profit - product sales62.0 46.1 116.9 93.0 Total gross profit100.1 73.8 189.7 147.4 Selling, general and administrative expenses73.3 54.1 136.0 106.4 Merger and acquisition expenses0.8 - 2.7 - Research and development expenses13.6 10.2 24.3 20.2 Depreciation3.9 3.0 7.7 5.6 Amortization of intangible assets10.1 2.8 15.9 4.9 Operating income (loss)(1.6) 3.7 3.1 10.3 Interest income (expense), net10.2 (1.2) 14.7 (2.1)Other income (loss), net(1.6) 2.1 (1.0) 1.8 Income before income taxes7.0 4.6 16.8 10.0 Provision for income taxes2.6 1.7 0.5 2.6 Net Income$4.4 $2.9 $16.3 $7.4 Basic income per common share$0.02 $0.02 $0.09 $0.05 Diluted income per common share$0.02 $0.02 $0.09 $0.05 Weighted average common shares outstanding: Basic188.6 155.7 182.7 154.9 Diluted190.1 157.4 184.8 156.9 Adjusted EBITDA (1)$38.2 $28.3 $76.9 $55.0 Unaudited Reconciliation of GAAP to Non-GAAP Measures
Note: (1) Adjusted EBITDA is a non-GAAP measure defined as GAAP net income adjusted for net interest income (expense), provision for income taxes, depreciation and amortization expense of intangible assets, amortization of capitalized contract and development costs, stock-based compensation, acquisition and restructuring related items and other, and foreign transaction (gain) loss.
Adjusted EBITDA as calculated by us may be calculated differently than Adjusted EBITDA for other companies. We have provided Adjusted EBITDA because we believe it is a commonly used measure of financial performance in comparable companies and is provided to help investors evaluate companies on a consistent basis, as well as to enhance understanding of our operating results. Adjusted EBITDA should not be construed as either an alternative to net income (loss) or as an indicator of our operating performance or an alternative to cash flows as a measure of liquidity. The adjustments to calculate this non-GAAP financial measure and the basis for such adjustments are outlined below. Please refer to the following table below that reconciles GAAP net income (loss) to Adjusted EBITDA.
The adjustments to calculate this non-GAAP financial measure, and the basis for such adjustments, are outlined below:
Interest income and interest expense, net. The Company receives interest income on investments and incurs interest expense on loans, capital leases and other financing arrangements, including the amortization of issue discounts and deferred financing costs. These amounts may vary from period to period due to changes in cash and debt balances.
Income taxes. The Company's tax expense can fluctuate materially from period to period due to tax adjustments that may not be directly related to underlying operating performance or to the current period of operations and may not necessarily reflect the impact of utilization of our NOLs.
Depreciation. The Company incurs depreciation expense (recorded in cost of revenues and in operating expenses) related to capital assets purchased, leased or constructed to support the ongoing operations of the business. The assets are recorded at cost or fair value and are depreciated over the estimated useful lives of individual assets.
Amortization of intangible assets. The Company incurs amortization of intangible expense related to acquisitions it has made. These intangible assets are valued at the time of acquisition and are amortized over the estimated useful lives.
Amortization of capitalized contract and development costs. The Company incurs amortization of previously capitalized software development and non-recurring engineering or design costs related to certain products or offerings in its Unmanned Systems, rocket support and services, and space and satellite businesses as related units are sold or over the estimated useful life, as applicable.
Stock-based compensation expense. The Company incurs expense related to stock-based compensation included in its GAAP presentation of selling, general and administrative expense. Although stock-based compensation is an expense of the Company and viewed as a form of compensation, these expenses vary in amount from period to period, and are affected by market forces that are difficult to predict and are not within the control of management, such as the market price and volatility of the Company's shares, risk-free interest rates and the expected term and forefeiture rates of the awards. Management believes that exclusion of these expenses allows comparison of operating results to those of other companies that disclose non-GAAP financial measures that exclude stock-based compensation.
Foreign transaction (gain) loss. The Company incurs transaction gains and losses which are not hedged related to transactions with foreign customers in currencies other than the U.S. dollar. In addition, certain intercompany transactions can give rise to realized and unrealized foreign currency gains and losses.
Acquisition and transaction related items. The Company incurs transaction related costs, such as legal and accounting fees and other expenses, related to acquisitions and divestiture activities. Management believes these items are outside the normal operations of the Company's business and are not indicative of ongoing operating results.
Restructuring costs. The Company incurs restructuring costs for cost reduction actions which include employee termination costs, facility shut-down related costs and lease commitment costs for unused, excess or exited facilities. Management believes that these costs are not indicative of ongoing operating results as they are either non-recurring and/or not expected when full capacity and volumes are achieved.
Legal related items. The Company incurs costs related to pending legal settlements and other legal related matters. Management believes these items are outside the normal operations of the Company's business and are not indicative of ongoing operating results.
Adjusted EBITDA is a non-GAAP financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. This non-GAAP financial measure may not be computed in the same manner as similarly titled measures used by other companies. The Company expects to continue to incur expenses similar to the Adjusted EBITDA financial adjustments described above, and investors should not infer from the Company's presentation of this non-GAAP financial measure that these costs are unusual, infrequent, or non-recurring.
Reconciliation of Net Income to Adjusted EBITDA is as follows:
Three Months Ended
Six Months Ended
June 28, June 29, June 28, June 29, 2026 2025 2026 2025 Net income$ 4.4 $ 2.9 $ 16.3 $ 7.4 Interest (income) expense, net(10.2) 1.2 (14.7) 2.1 Provision for income taxes2.6 1.7 0.5 2.6 Depreciation (including cost of service revenues and product sales)12.0 9.0 23.0 17.3 Stock-based compensation16.3 8.6 31.3 17.3 Foreign transaction (gain) loss(0.2) 0.3 (0.3) 0.7 Amortization of intangible assets10.1 2.8 15.9 4.9 Amortization of capitalized contract and development costs2.4 0.9 4.2 1.8 Acquisition and restructuring related items and other0.8 - 2.7 - Reversal of contingent acquisition consideration- - (2.0) - Resolution of previously recorded contingent liability- (1.1) - (1.1)Litigation fees and legal related items- 2.0 - 2.0 Adjusted EBITDA$ 38.2 $ 28.3 $ 76.9 $ 55.0 Kratos Defense & Security Solutions, Inc.
Unaudited Segment Data
(in millions) Three Months Ended
Six Months Ended
June 28, June 29, June 28, June 29, 2026 2025 2026 2025 Revenues: Unmanned Systems$79.1 $73.2 $161.7 $136.3 Kratos Government Solutions379.7 278.3 668.1 517.8 Total revenues$458.8 $351.5 $829.8 $654.1 Operating income Unmanned Systems$1.2 $(0.2) $2.5 $(1.9)Kratos Government Solutions14.3 12.5 34.6 29.5 Unallocated corporate expense, net(17.1) (8.6) (34.0) (17.3)Total operating income (loss)$(1.6) $3.7 $3.1 $10.3 Note: Unallocated corporate expense, net includes costs for certain stock-based compensation programs (including stock-based compensation costs for the employee stock purchase plan and restricted stock units), the effects of items not considered part of management’s evaluation of segment operating performance, and acquisition and restructuring related items, corporate costs not allocated to the segments, legal related items, and other miscellaneous corporate activities.
Reconciliation of Segment Operating Income (Loss) to Adjusted EBITDA is as follows:
Three Months Ended
Six Months Ended
June 28, June 29, June 28, June 29, 2026 2025 2026 2025 Unmanned Systems Operating income (loss)$ 1.1 $ (0.2) $ 2.5 $ (1.9)Other income- - 0.1 0.1 Depreciation2.9 2.7 5.7 5.0 Amortization of intangible assets1.0 1.0 1.9 2.0 Amortization of capitalized contract and development costs0.1 - 0.1 - Resolution of Previously Recorded Contingent Liability- (0.3) - (0.3)Litigation Fees and Legal Related Items- 0.5 - 0.5 Adjusted EBITDA$ 5.1 $ 3.7 $ 10.3 $ 5.4 % of revenue6.4% 5.1% 6.4% 4.0% Kratos Government Solutions Operating income$ 14.3 $ 12.5 $ 34.6 $ 29.5 Other income(1.7) 2.4 (1.4) 2.4 Depreciation9.1 6.3 17.3 12.3 Amortization of intangible assets9.1 1.8 14.0 2.9 Amortization of capitalized contract and development costs2.3 0.9 4.1 1.8 Reversal of contingent acquisition consideration- - (2.0) - Resolution of Previously Recorded Contingent Liability- (0.8) - (0.8)Litigation Fees and Legal Related Items- 1.5 - 1.5 Adjusted EBITDA$ 33.1 $ 24.6 $ 66.6 $ 49.6 % of revenue8.7% 8.8% 10.0% 9.6% Total Adjusted EBITDA$ 38.2 $ 28.3 $ 76.9 $ 55.0 % of revenue8.3% 8.1% 9.3% 8.4% Kratos Defense & Security Solutions, Inc.
Unaudited Condensed Consolidated Balance Sheets
(in millions)
June 28, December 28,
2026 2025 Assets Current assets: Cash and cash equivalents$1,437.6 $560.6 Accounts receivable, net171.3 165.0 Unbilled receivables, net405.4 292.4 Inventoried costs, net235.9 188.2 Prepaid expenses24.1 12.9 Other current assets82.2 43.8 Total current assets2,356.5 1,262.9 Property, plant and equipment, net419.4 361.9 Operating lease right-of-use assets50.6 43.4 Goodwill871.2 595.7 Intangible assets, net220.8 53.9 Other assets159.4 144.4 Investment in joint venture11.9 5.0 Total assets$4,089.8 $2,467.2 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable$104.8 $69.6 Accrued expenses95.9 60.5 Accrued compensation92.2 82.3 Billings in excess of costs and earnings on uncompleted contracts93.6 73.4 Current portion of operating lease liabilities13.8 12.8 Current portion of finance lease liabilities5.1 3.4 Other current liabilities19.9 9.0 Total current liabilities425.3 311.0 Operating lease liabilities, net of current portion39.9 33.8 Finance lease liabilities, net of current portion134.8 95.8 Other long-term liabilities63.0 30.3 Total liabilities663.0 470.9 Commitments and contingencies Stockholders’ equity: Common stock0.2 0.2 Additional paid-in capital4,051.6 2,635.9 Accumulated other comprehensive income (loss)0.6 2.1 Accumulated deficit(625.6) (641.9)Total equity3,426.8 1,996.3 Total liabilities and stockholders’ equity$4,089.8 $2,467.2 Kratos Defense & Security Solutions, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in millions)
Six Months Ended
June 28, June 29, 2026 2025 Operating activities: Net income$16.3 $7.4 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization38.9 22.2 Amortization of lease right-of-use assets6.9 6.0 Deferred income taxes2.1 - Stock-based compensation31.3 17.3 Amortization of deferred financing costs0.2 0.3 Provision for doubtful accounts0.1 - Changes in assets and liabilities, net of acquisitions: Accounts receivable16.7 (23.1)Unbilled receivables(104.3) (49.9)Inventoried costs(24.8) (7.3)Prepaid expenses and other assets(36.6) (27.3)Operating lease liabilities(7.5) (5.7)Accounts payable23.0 17.5 Accrued expenses20.6 9.1 Accrued compensation(3.2) - Billings in excess of costs and earnings on uncompleted contracts(10.7) (5.1)Income tax receivable and payable(3.9) (0.9)Other liabilities(3.5) (1.4)Net cash used in operating activities(38.4) (40.9)Investing activities: Cash paid for acquisitions, net of cash acquired(346.8) - Proceeds from sale of assets13.5 - Investment in joint venture(6.9) - Capital expenditures(37.1) (43.1)Proceeds from state grant for capital construction2.0 - Net cash used in investing activities(375.3) (43.1)Financing activities: Repayment under credit facility and term loan- (5.0)Proceeds from the issuance of common stock, net of issuance costs1,348.4 555.9 Debt issuance costs(1.4) - Payment under finance leases(2.0) (0.9)Payments of employee taxes withheld from share-based awards(59.1) (18.3)Proceeds from shares issued under equity plans5.3 4.6 Net cash provided by financing activities1,291.2 536.3 Net cash flows877.5 452.3 Effect of exchange rate changes on cash and cash equivalents(0.5) 2.0 Net increase in cash and cash equivalents877.0 454.3 Cash and cash equivalents at beginning of period560.6 329.3 Cash and cash equivalents at end of period$1,437.6 $783.6 Kratos Defense & Security Solutions, Inc.
Unaudited Non-GAAP Measures
Computation of Adjusted Earnings Per Share
(in millions, except per share data)
Adjusted income and adjusted income per diluted common share (Adjusted EPS) are non-GAAP measures for reporting financial performance and exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. Management believes that exclusion of these items assists in providing a more complete understanding of the Company's underlying results and trends and allows for comparability with our peer company index and industry. The Company uses these measures along with the corresponding GAAP financial measures to manage the Company's business and to evaluate its performance compared to prior periods and the marketplace. The Company defines adjusted income before amortization of intangible assets and capitalized contract and development costs, depreciation, stock based compensation, foreign transaction gain/loss, and acquisition and restructuring related items and other. The estimated impact to income taxes excludes the impact to the expenses and release of valuation alloweffective tax rate, current tax provision and deferred tax provision, and excludes the impact of discrete items, including transaction related expenses and release of valuation allowance, or benefit related to the add-backs.*
Adjusted EPS reflects adjusted income on a per share basis using weighted average diluted shares outstanding.
The following table reconciles the most directly comparable GAAP financial measures to the non-GAAP financial measures.
Three Months Ended
Six Months Ended
June 28, June 29, June 28, June 29, 2026 2025 2026 2025 Net income$4.4 $2.9 $16.3 $7.4 Less: GAAP provision for income taxes2.6 1.7 0.5 2.6 Income before taxes7.0 4.6 16.8 10.0 Add: Amortization of intangible assets10.1 2.8 15.9 4.9 Add: Amortization of capitalized contract and development costs2.4 0.9 4.2 1.8 Add: Depreciation12.0 9.0 23.0 17.3 Add: Stock-based compensation16.3 8.6 31.3 17.3 Add: Foreign transaction (gain) loss(0.2) 0.3 (0.3) 0.7 Add: Acquisition and restructuring related items and other0.8 - 2.7 - Less: Reversal of contingent acquisition consideration- (2.0) Non-GAAP Adjusted income from consolidated operations before income taxes48.4 26.2 91.6 52.0 Income taxes on Non-GAAP measure Adjusted income*9.0 9.1 17.5 16.0 Non-GAAP Adjusted net income$39.4 $17.1 $74.1 $36.0 Diluted earnings per common share$0.02 $0.02 $0.09 $0.05 Less: GAAP provision for income taxes0.01 0.01 - 0.02 Add: Amortization of intangible assets0.06 0.02 0.09 0.03 Add: Amortization of capitalized contract and development costs0.01 0.01 0.02 0.01 Add: Depreciation0.07 0.06 0.13 0.11 Add: Stock-based compensation0.09 0.05 0.16 0.11 Add: Foreign transaction loss- - - - Add: Acquisition and restructuring related items and other- - 0.01 - Less: Reversal of contingent acquisition consideration (0.01) - Income taxes on Non-GAAP measure Adjusted income*(0.05) (0.06) (0.09) (0.10)Adjusted income per diluted common share$0.21 $0.11 $0.40 $0.23 Weighted average diluted common shares outstanding190.1 157.4 184.8 156.9 *The impact to income taxes is calculated by recasting income before income taxes to include the add-backs involved in determining Adjusted Income before income taxes and recalculating the income tax provision, including current and deferred income taxes, using the Adjusted Income before income taxes.The recalculation also adjusts for any discrete tax expense, including transaction related expenses and the release of valuation allowance, or benefit related to the add-backs.
Wynn Resorts ve 2. čtvrtletí zvýšil tržby na 1,86 miliardy USD a čistý zisk na 140,1 milionu USD. Představenstvo zároveň 4. srpna 2026 schválilo dividendu 0,25 USD na akcii, splatnou 28. srpna 2026 pro akcionáře k 14. srpnu 2026.
, /PRNewswire/ -- Wynn Resorts, Limited (NASDAQ: WYNN) ("Wynn Resorts" or the "Company") today reported financial results for the second quarter ended June 30, 2026.
Operating revenues were $1.86 billion for the second quarter of 2026, an increase of $119.1 million from $1.74 billion for the second quarter of 2025. Net income attributable to Wynn Resorts, Limited was $140.1 million for the second quarter of 2026, compared to net income attributable to Wynn Resorts, Limited of $66.2 million for the second quarter of 2025. Diluted net income per share was $1.32 for the second quarter of 2026, compared to diluted net income per share of $0.64 for the second quarter of 2025. Adjusted Property EBITDAR(1) was $568.3 million for the second quarter of 2026, compared to Adjusted Property EBITDAR of $552.4 million for the second quarter of 2025.
"Our second quarter results, including a monthly record for Adjusted Property EBITDAR in Las Vegas in May, and strong performance in Macau, reflect continued healthy demand dynamics throughout our business. I am incredibly proud of our teams in both regions," said Craig Billings, CEO of Wynn Resorts, Limited. "Importantly, we continue to invest in both growing and diversifying our business with construction at Wynn Al Marjan Island progressing at a rapid pace. Wynn Resorts, alongside our partners in Ras Al Khaimah, are now pleased to announce that Wynn Al Marjan Island, the most exciting integrated resort to be developed in over a decade, will open its doors to guests in September of 2027."
Consolidated Results
Operating revenues were $1.86 billion for the second quarter of 2026, an increase of $119.1 million from $1.74 billion for the second quarter of 2025. For the second quarter of 2026, operating revenues increased $113.8 million, $7.3 million, and $4.6 million at Wynn Palace, Wynn Macau, and our Las Vegas Operations, respectively, and decreased $6.4 million at Encore Boston Harbor, from the second quarter of 2025.
Net income attributable to Wynn Resorts, Limited was $140.1 million for the second quarter of 2026, compared to net income attributable to Wynn Resorts, Limited of $66.2 million for the second quarter of 2025. Diluted net income per share was $1.32 for the second quarter of 2026, compared to diluted net income per share of $0.64 for the second quarter of 2025. Adjusted net income attributable to Wynn Resorts, Limited(2) was $127.5 million, or $1.24 per diluted share, for the second quarter of 2026, compared to adjusted net income attributable to Wynn Resorts, Limited of $113.3 million, or $1.09 per diluted share, for the second quarter of 2025.
Adjusted Property EBITDAR was $568.3 million for the second quarter of 2026, an increase of $15.9 million compared to Adjusted Property EBITDAR of $552.4 million for the second quarter of 2025. For the second quarter of 2026, Adjusted Property EBITDAR increased $44.3 million at Wynn Palace and decreased $19.6 million, $7.8 million, and $1.0 million at our Las Vegas Operations, Encore Boston Harbor, and Wynn Macau, respectively, from the second quarter of 2025.
Wynn Resorts, Limited also announced on August 4, 2026 that its Board of Directors declared a cash dividend of $0.25 per share, payable on August 28, 2026 to stockholders of record as of August 14, 2026.
Property Results
Macau Operations
Wynn Palace
Operating revenues from Wynn Palace were $653.4 million for the second quarter of 2026, an increase of $113.8 million from $539.6 million for the second quarter of 2025. Adjusted Property EBITDAR from Wynn Palace was $201.5 million for the second quarter of 2026, compared to $157.2 million for the second quarter of 2025. Table games win percentage in mass market operations was 29.7%, above the 22.3% experienced in the second quarter of 2025. VIP table games win as a percentage of turnover was 2.97%, below the property's expected range of 3.1% to 3.4% and above the 2.86% experienced in the second quarter of 2025.
Wynn Macau
Operating revenues from Wynn Macau were $351.1 million for the second quarter of 2026, an increase of $7.3 million from $343.8 million for the second quarter of 2025. Adjusted Property EBITDAR from Wynn Macau was $95.5 million for the second quarter of 2026, compared to $96.5 million for the second quarter of 2025. Table games win percentage in mass market operations was 17.1%, below the 17.4% experienced in the second quarter of 2025. VIP table games win as a percentage of turnover was 2.58%, below the property's expected range of 3.1% to 3.4% and below the 3.41% experienced in the second quarter of 2025.
Las Vegas Operations
Operating revenues from our Las Vegas Operations were $643.2 million for the second quarter of 2026, an increase of $4.6 million from $638.6 million for the second quarter of 2025. Adjusted Property EBITDAR from our Las Vegas Operations for the second quarter of 2026 was $215.2 million, compared to $234.8 million for the second quarter of 2025. Table games win percentage for the second quarter of 2026 was 23.9%, within the property's expected range of 22% to 26% and above the 21.8% experienced in the second quarter of 2025.
Encore Boston Harbor
Operating revenues from Encore Boston Harbor were $209.3 million for the second quarter of 2026, a decrease of $6.4 million from $215.7 million for the second quarter of 2025. Adjusted Property EBITDAR from Encore Boston Harbor for the second quarter of 2026 was $56.1 million, compared to $63.9 million for the second quarter of 2025. Table games win percentage for the second quarter of 2026 was 18.1%, within the property's expected range of 18% to 22% and below the 21.3% experienced in the second quarter of 2025.
Wynn Al Marjan Island Development
During the second quarter of 2026, the Company contributed $48.1 million of cash to the 40%-owned joint venture that is constructing the Wynn Al Marjan Island development in the UAE, bringing our life-to-date cash contributions to the project to $1.06 billion. Wynn Al Marjan Island is currently expected to open in September 2027.
Balance Sheet
Our cash and cash equivalents as of June 30, 2026 totaled $1.57 billion, excluding $527.4 million of short-term investments held by Wynn Macau, Limited ("WML"). Cash and cash equivalents is comprised of $944.8 million held by WML and subsidiaries, $393.4 million held by Wynn Resorts Finance, LLC ("WRF") and subsidiaries excluding WML, and $235.2 million held at Corporate and other. As of June 30, 2026, the available borrowing capacity under the WRF Revolver and the WM Cayman II Revolver was $1.03 billion and $1.35 billion, respectively.
Total current and long-term debt outstanding at June 30, 2026 was $10.72 billion, comprised of $5.76 billion of Macau-related debt, $877.8 million of Wynn Las Vegas debt, $3.49 billion of WRF debt, and $598.9 million of debt held by the retail joint venture which we consolidate.
Equity Repurchase Program
During the second quarter of 2026, the Company repurchased 741,098 shares of its common stock under its publicly announced equity repurchase program at an average price of $101.20 per share, for an aggregate cost of $75.0 million. As of June 30, 2026, the Company had $326.1 million in repurchase authority remaining under the equity repurchase program.
Conference Call and Other Information
The Company will hold a conference call to discuss its results, including the results of Wynn Resorts Finance, LLC and Wynn Las Vegas, LLC, on August 4, 2026 at 1:30 p.m. PT (4:30 p.m. ET). Interested parties are invited to join the call by accessing a live audio webcast at http://www.wynnresorts.com. On or before August 14, 2026, the Company will make Wynn Resorts Finance, LLC and Wynn Las Vegas, LLC financial information for the quarter ended June 30, 2026 available to noteholders, prospective investors, broker-dealers and securities analysts. Please contact our investor relations office at 702-770-7555 or at [email protected], to obtain access to such financial information.
Forward-looking Statements
This release contains forward-looking statements regarding operating trends and future results of operations. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those we express in these forward-looking statements, including, but not limited to, reductions in discretionary consumer spending, adverse macroeconomic conditions and their impact on levels of disposable consumer income and wealth, changes in interest rates, inflation, a decline in general economic activity or recession in the U.S. and/or global economies, extensive regulation of our business, pending or future legal proceedings, ability to maintain gaming licenses and concessions, dependence on key employees, geopolitical conflicts, adverse tourism trends, travel disruptions caused by events outside of our control, dependence on a limited number of resorts, competition in the casino/hotel and resort industries, uncertainties over the development and success of new gaming and resort properties, construction and regulatory risks associated with current and future projects (including Wynn Al Marjan Island), cybersecurity risk and our leverage and ability to meet our debt service obligations. Additional information concerning potential factors that could affect the Company's financial results is included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as supplemented by the Company's other periodic reports filed with the Securities and Exchange Commission from time to time. The Company is under no obligation to (and expressly disclaims any such obligation to) update or revise its forward-looking statements as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Financial Measures
(1) "Adjusted Property EBITDAR" is net income before interest, income taxes, depreciation and amortization, pre-opening expenses, property charges and other expenses, triple-net operating lease rent expense related to Encore Boston Harbor, management and license fees, corporate expenses and other expenses (including intercompany golf course, meeting and convention, and water rights leases), stock-based compensation, change in derivatives fair value, loss on debt financing transactions and other non-operating income and expenses. Adjusted Property EBITDAR is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted Property EBITDAR as a measure of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors, as well as a basis for determining certain incentive compensation. We also present Adjusted Property EBITDAR because it is used by some investors to measure a company's ability to incur and service debt, make capital expenditures and meet working capital requirements. Gaming companies have historically reported EBITDAR as a supplement to GAAP. In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including us, have historically excluded from their EBITDAR calculations pre-opening expenses, property charges, corporate expenses and stock-based compensation, that do not relate to the management of specific casino properties. However, Adjusted Property EBITDAR should not be considered as an alternative to operating income (loss) as an indicator of our performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. Unlike net income, Adjusted Property EBITDAR does not include depreciation or interest expense and therefore does not reflect current or future capital expenditures or the cost of capital. We have significant uses of cash flows, including capital expenditures, triple-net operating lease rent expense related to Encore Boston Harbor, interest payments, debt principal repayments, income taxes and other non-recurring charges, which are not reflected in Adjusted Property EBITDAR. Also, our calculation of Adjusted Property EBITDAR may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
(2) "Adjusted net income attributable to Wynn Resorts, Limited" is net income attributable to Wynn Resorts, Limited before pre-opening expenses, property charges and other expenses, change in derivatives fair value, foreign currency remeasurement and other, and income taxes calculated using the specific tax treatment applicable to the adjustments based on their respective jurisdictions. Adjusted net income attributable to Wynn Resorts, Limited and adjusted net income attributable to Wynn Resorts, Limited per diluted share are presented as supplemental disclosures to financial measures in accordance with GAAP because management believes that these non-GAAP financial measures are widely used to measure the performance, and as a principal basis for valuation, of gaming companies. These measures are used by management and/or evaluated by some investors, in addition to net income per share computed in accordance with GAAP, as an additional basis for assessing period-to-period results of our business. Adjusted net income attributable to Wynn Resorts, Limited and adjusted net income attributable to Wynn Resorts, Limited per diluted share may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
The Company has included schedules in the tables that accompany this release that reconcile (i) net income attributable to Wynn Resorts, Limited to adjusted net income attributable to Wynn Resorts, Limited, (ii) operating income (loss) to Adjusted Property EBITDAR, and (iii) net income attributable to Wynn Resorts, Limited to Adjusted Property EBITDAR.
WYNN RESORTS, LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Operating revenues:
Casino
$ 1,175,288
$ 1,051,834
$ 2,352,521
$ 2,092,264
Rooms
290,303
291,053
580,684
565,574
Food and beverage
264,344
261,057
523,363
510,936
Entertainment, retail and other
126,998
133,853
257,127
269,420
Total operating revenues
1,856,933
1,737,797
3,713,695
3,438,194
Operating expenses:
Casino
721,384
643,108
1,454,054
1,277,941
Rooms
88,569
86,042
178,360
170,139
Food and beverage
236,642
224,400
465,464
425,067
Entertainment, retail and other
51,390
58,041
111,103
120,227
General and administrative
270,115
280,815
545,319
556,504
Provision for credit losses
6,930
3,353
10,987
4,749
Pre-opening
9,232
11,286
20,977
16,573
Depreciation and amortization
165,421
152,907
325,948
308,328
Property charges and other
9,662
13,245
21,291
25,477
Total operating expenses
1,559,345
1,473,197
3,133,503
2,905,005
Operating income
297,588
264,600
580,192
533,189
Other income (expense):
Interest income
12,774
15,859
25,866
35,218
Interest expense, net of amounts capitalized
(152,177)
(154,551)
(304,539)
(312,159)
Change in derivatives fair value
43,287
(1,112)
90,057
(30,651)
Loss on debt financing transactions
—
(1,083)
—
(1,083)
Other
(2,746)
(36,164)
(32,180)
(44,538)
Other income (expense), net
(98,862)
(177,051)
(220,796)
(353,213)
Income before income taxes
198,726
87,549
359,396
179,976
Provision for income taxes
(16,154)
(10,588)
(26,286)
(21,610)
Net income
182,572
76,961
333,110
158,366
Less: net income attributable to noncontrolling interests
(42,510)
(10,743)
(72,594)
(19,401)
Net income attributable to Wynn Resorts, Limited
$ 140,062
$ 66,218
$ 260,516
$ 138,965
Basic and diluted net income per common share:
Net income attributable to Wynn Resorts, Limited:
Basic
$ 1.37
$ 0.64
$ 2.53
$ 1.33
Diluted
$ 1.32
$ 0.64
$ 2.36
$ 1.33
Weighted average common shares outstanding:
Basic
102,574
103,491
102,828
104,486
Diluted
102,983
103,780
103,390
104,749
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
TO ADJUSTED NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED
(in thousands, except per share data)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net income attributable to Wynn Resorts, Limited
$ 140,062
$ 66,218
$ 260,516
$ 138,965
Pre-opening expenses
9,232
11,286
20,977
16,573
Property charges and other
9,662
13,245
21,291
25,477
Change in derivatives fair value
(43,287)
1,112
(90,057)
30,651
Loss on debt financing transactions
—
1,083
—
1,083
Foreign currency remeasurement and other
2,746
36,164
32,180
44,538
Income tax impact on adjustments
(1,254)
(3,178)
(2,384)
(4,854)
Noncontrolling interests impact on adjustments
10,293
(12,595)
14,663
(25,953)
Adjusted net income attributable to Wynn Resorts, Limited
$ 127,454
$ 113,335
$ 257,186
$ 226,480
Adjusted net income attributable to Wynn Resorts, Limited per
diluted share
$ 1.24
$ 1.09
$ 2.49
$ 2.16
Weighted average common shares outstanding - diluted
102,983
103,780
103,390
104,749
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDAR
(in thousands)
(unaudited)
Three Months Ended June 30, 2026
Wynn
Palace
Wynn
Macau
Other
Macau
Total
Macau
Operations
Las Vegas
Operations
Encore
Boston
Harbor
Corporate
and Other
Total
Operating income (loss)
$ 113,196
$ 57,548
$ (7,908)
$ 162,836
$ 102,412
$ (6,365)
$ 38,705
$ 297,588
Pre-opening expenses
—
146
—
146
252
—
8,834
9,232
Depreciation and amortization
62,502
20,879
397
83,778
63,103
14,522
4,018
165,421
Property charges and other
1,869
2,536
3
4,408
5,134
184
(64)
9,662
Management and license fees
20,592
10,680
—
31,272
30,192
10,227
(71,691)
—
Corporate expenses and other
2,245
2,281
6,765
11,291
8,309
1,746
12,863
34,209
Stock-based compensation
1,084
1,441
743
3,268
5,824
475
7,335
16,902
Triple-net operating lease rent expense
—
—
—
—
—
35,295
—
35,295
Adjusted Property EBITDAR
$ 201,488
$ 95,511
$ —
$ 296,999
$ 215,226
$ 56,084
$ —
$ 568,309
Three Months Ended June 30, 2025
Wynn
Palace
Wynn
Macau
Other
Macau
Total
Macau
Operations
Las Vegas
Operations
Encore
Boston
Harbor
Corporate
and Other
Total
Operating income (loss)
$ 72,760
$ 62,988
$ (7,464)
$ 128,284
$ 110,457
$ 1,047
$ 24,812
$ 264,600
Pre-opening expenses
3,004
—
—
3,004
2,095
—
6,187
11,286
Depreciation and amortization
59,344
18,280
398
78,022
58,821
14,229
1,835
152,907
Property charges and other
1,115
1,233
10
2,358
8,363
1,047
1,477
13,245
Management and license fees
17,605
10,648
—
28,253
30,125
10,449
(68,827)
—
Corporate expenses and other
2,045
2,079
6,137
10,261
7,594
1,585
27,006
46,446
Stock-based compensation
1,333
1,282
919
3,534
17,357
436
7,510
28,837
Triple-net operating lease rent expense
—
—
—
—
—
35,066
—
35,066
Adjusted Property EBITDAR
$ 157,206
$ 96,510
$ —
$ 253,716
$ 234,812
$ 63,859
$ —
$ 552,387
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF OPERATING INCOME (LOSS) TO ADJUSTED PROPERTY EBITDAR
(in thousands)
(unaudited)
Six Months Ended June 30, 2026
Wynn
Palace
Wynn
Macau
Other
Macau
Total
Macau
Operations
Las Vegas
Operations
Encore
Boston
Harbor
Corporate
and Other
Total
Operating income (loss)
$ 225,986
$ 98,520
$ (16,407)
$ 308,099
$ 215,245
$ (20,403)
$ 77,251
$ 580,192
Pre-opening expenses
662
146
—
808
3,812
—
16,357
20,977
Depreciation and amortization
123,735
41,252
795
165,782
123,878
28,973
7,315
325,948
Property charges and other
5,779
2,731
10
8,520
9,793
2,667
311
21,291
Management and license fees
41,898
20,778
—
62,676
61,222
20,176
(144,074)
—
Corporate expenses and other
4,790
4,950
14,057
23,797
16,416
3,579
25,227
69,019
Stock-based compensation
2,460
2,750
1,545
6,755
17,320
952
17,613
42,640
Triple-net operating lease rent expense
—
—
—
—
—
70,659
—
70,659
Adjusted Property EBITDAR
$ 405,310
$ 171,127
$ —
$ 576,437
$ 447,686
$ 106,603
$ —
$ 1,130,726
Six Months Ended June 30, 2025
Wynn
Palace
Wynn
Macau
Other
Macau
Total
Macau
Operations
Las Vegas
Operations
Encore
Boston
Harbor
Corporate
and Other
Total
Operating income (loss)
$ 155,325
$ 115,730
$ (15,623)
$ 255,432
$ 226,536
$ (9,688)
$ 60,909
$ 533,189
Pre-opening expenses
4,204
—
—
4,204
2,855
—
9,514
16,573
Depreciation and amortization
115,781
37,504
796
154,081
121,449
28,195
4,603
308,328
Property charges and other
1,823
5,439
16
7,278
9,065
6,563
2,571
25,477
Management and license fees
35,105
21,021
—
56,126
59,448
20,590
(136,164)
—
Corporate expenses and other
4,251
4,394
12,887
21,532
15,488
3,273
42,734
83,027
Stock-based compensation
2,602
2,621
1,924
7,147
23,332
1,925
15,833
48,237
Triple-net operating lease rent expense
—
—
—
—
—
70,455
—
70,455
Adjusted Property EBITDAR
$ 319,091
$ 186,709
$ —
$ 505,800
$ 458,173
$ 121,313
$ —
$ 1,085,286
WYNN RESORTS, LIMITED AND SUBSIDIARIES
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO WYNN RESORTS, LIMITED TO
ADJUSTED PROPERTY EBITDAR
(in thousands)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net income attributable to Wynn Resorts, Limited
$ 140,062
$ 66,218
$ 260,516
$ 138,965
Net income attributable to noncontrolling interests
42,510
10,743
72,594
19,401
Pre-opening expenses
9,232
11,286
20,977
16,573
Depreciation and amortization
165,421
152,907
325,948
308,328
Property charges and other
9,662
13,245
21,291
25,477
Triple-net operating lease rent expense
35,295
35,066
70,659
70,455
Corporate expenses and other
34,209
46,446
69,019
83,027
Stock-based compensation
16,902
28,837
42,640
48,237
Interest income
(12,774)
(15,859)
(25,866)
(35,218)
Interest expense, net of amounts capitalized
152,177
154,551
304,539
312,159
Change in derivatives fair value
(43,287)
1,112
(90,057)
30,651
Loss on debt financing transactions
—
1,083
—
1,083
Other
2,746
36,164
32,180
44,538
Provision for income taxes
16,154
10,588
26,286
21,610
Adjusted Property EBITDAR
$ 568,309
$ 552,387
$ 1,130,726
$ 1,085,286
WYNN RESORTS, LIMITED AND SUBSIDIARIES
SUPPLEMENTAL DATA SCHEDULE
(dollars in thousands, except for win per unit per day, ADR and REVPAR)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
Percent
Change
2026
2025
Percent
Change
Wynn Palace Supplemental Information
Operating revenues
Casino
$ 564,356
$ 448,298
25.9
$ 1,129,273
$ 892,806
26.5
Rooms
36,188
38,481
(6.0)
73,822
75,096
(1.7)
Food and beverage
31,785
30,446
4.4
64,820
62,184
4.2
Entertainment, retail and other
21,070
22,416
(6.0)
44,822
45,484
(1.5)
Total
$ 653,399
$ 539,641
21.1
$ 1,312,737
$ 1,075,570
22.1
Adjusted Property EBITDAR (6)
$ 201,488
$ 157,206
28.2
$ 405,310
$ 319,091
27.0
Casino statistics:
VIP:
Average number of table games
47
52
(9.6)
49
54
(9.3)
VIP turnover
$ 2,767,504
$ 4,071,052
(32.0)
$ 7,083,818
$ 8,076,093
(12.3)
VIP table games win (1)
$ 82,313
$ 116,471
(29.3)
$ 216,555
$ 221,003
(2.0)
VIP table games win as a % of turnover
2.97 %
2.86 %
3.06 %
2.74 %
Table games win per unit per day
$ 19,174
$ 24,438
(21.5)
$ 24,589
$ 22,735
8.2
Mass market:
Average number of table games
287
249
15.3
281
248
13.3
Table drop (2)
$ 1,899,985
$ 1,844,054
3.0
$ 3,871,036
$ 3,548,452
9.1
Table games win (1)
$ 563,348
$ 411,604
36.9
$ 1,087,145
$ 833,996
30.4
Table games win %
29.7 %
22.3 %
28.1 %
23.5 %
Table games win per unit per day
$ 21,590
$ 18,171
18.8
$ 21,392
$ 18,566
15.2
Average number of slot machines
721
627
15.0
722
638
13.2
Slot machine handle
$ 960,344
$ 757,815
26.7
$ 1,820,867
$ 1,492,685
22.0
Slot machine win (3)
$ 40,695
$ 32,482
25.3
$ 76,151
$ 61,838
23.1
Slot machine win per unit per day
$ 620
$ 569
9.0
$ 582
$ 535
8.8
Room statistics:
Occupancy
98.9 %
98.7 %
99.0 %
98.5 %
ADR (4)
$ 219
$ 232
(5.6)
$ 224
$ 227
(1.3)
REVPAR (5)
$ 216
$ 229
(5.7)
$ 222
$ 224
(0.9)
WYNN RESORTS, LIMITED AND SUBSIDIARIES
SUPPLEMENTAL DATA SCHEDULE
(dollars in thousands, except for win per unit per day, ADR and REVPAR)
(unaudited) (continued)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
Percent
Change
2026
2025
Percent
Change
Wynn Macau Supplemental Information
Operating revenues
Casino
$ 300,726
$ 293,380
2.5
$ 577,458
$ 568,930
1.5
Rooms
20,907
21,742
(3.8)
42,227
45,039
(6.2)
Food and beverage
16,761
17,020
(1.5)
36,031
35,812
0.6
Entertainment, retail and other
12,692
11,671
8.7
25,222
23,992
5.1
Total
$ 351,086
$ 343,813
2.1
$ 680,938
$ 673,773
1.1
Adjusted Property EBITDAR (6)
$ 95,511
$ 96,510
(1.0)
$ 171,127
$ 186,709
(8.3)
Casino statistics:
VIP:
Average number of table games
10
21
(52.4)
11
25
(56.0)
VIP turnover
$ 428,101
$ 981,735
(56.4)
$ 1,013,987
$ 2,418,782
(58.1)
VIP table games win (1)
$ 11,044
$ 33,438
(67.0)
$ 13,321
$ 49,152
(72.9)
VIP table games win as a % of turnover
2.58 %
3.41 %
1.31 %
2.03 %
Table games win per unit per day
$ 11,576
$ 17,571
(34.1)
$ 6,505
$ 10,777
(39.6)
Mass market:
Average number of table games
213
231
(7.8)
216
226
(4.4)
Table drop (2)
$ 1,751,881
$ 1,617,756
8.3
$ 3,655,442
$ 3,160,641
15.7
Table games win (1)
$ 300,200
$ 280,836
6.9
$ 588,325
$ 569,385
3.3
Table games win %
17.1 %
17.4 %
16.1 %
18.0 %
Table games win per unit per day
$ 15,453
$ 13,346
15.8
$ 15,025
$ 13,916
8.0
Average number of slot machines
922
751
22.8
916
740
23.8
Slot machine handle
$ 1,190,692
$ 1,009,092
18.0
$ 2,429,785
$ 1,862,499
30.5
Slot machine win (3)
$ 34,925
$ 25,193
38.6
$ 71,138
$ 49,560
43.5
Slot machine win per unit per day
$ 416
$ 369
12.7
$ 429
$ 370
15.9
Room statistics:
Occupancy
99.3 %
99.4 %
99.5 %
99.2 %
ADR (4)
$ 209
$ 216
(3.2)
$ 216
$ 225
(4.0)
REVPAR (5)
$ 208
$ 215
(3.3)
$ 215
$ 223
(3.6)
WYNN RESORTS, LIMITED AND SUBSIDIARIES
SUPPLEMENTAL DATA SCHEDULE
(dollars in thousands, except for win per unit per day, ADR and REVPAR)
(unaudited) (continued)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
Percent
Change
2026
2025
Percent
Change
Las Vegas Operations Supplemental Information
Operating revenues
Casino
$ 158,104
$ 148,502
6.5
$ 336,295
$ 309,495
8.7
Rooms
208,132
207,981
0.1
420,693
403,849
4.2
Food and beverage
195,688
194,861
0.4
384,416
374,303
2.7
Entertainment, retail and other
81,244
87,289
(6.9)
163,673
176,271
(7.1)
Total
$ 643,168
$ 638,633
0.7
$ 1,305,077
$ 1,263,918
3.3
Adjusted Property EBITDAR (6)
$ 215,226
$ 234,812
(8.3)
$ 447,686
$ 458,173
(2.3)
Casino statistics:
Average number of table games
242
232
4.3
242
234
3.4
Table drop (2)
$ 638,243
$ 609,232
4.8
$ 1,323,544
$ 1,201,759
10.1
Table games win (1)
$ 152,660
$ 132,975
14.8
$ 325,065
$ 277,036
17.3
Table games win %
23.9 %
21.8 %
24.6 %
23.1 %
Table games win per unit per day
$ 6,922
$ 6,300
9.9
$ 7,426
$ 6,538
13.6
Average number of slot machines
1,558
1,564
(0.4)
1,566
1,577
(0.7)
Slot machine handle
$ 1,813,124
$ 1,760,253
3.0
$ 3,628,604
$ 3,538,339
2.6
Slot machine win (3)
$ 117,009
$ 123,606
(5.3)
$ 237,344
$ 246,850
(3.9)
Slot machine win per unit per day
$ 825
$ 868
(5.0)
$ 837
$ 865
(3.2)
Poker rake
$ 7,712
$ 8,103
(4.8)
$ 11,511
$ 12,434
(7.4)
Room statistics:
Occupancy
87.1 %
89.2 %
86.3 %
88.3 %
ADR (4)
$ 575
$ 548
4.9
$ 583
$ 538
8.4
REVPAR (5)
$ 501
$ 489
2.5
$ 504
$ 475
6.1
WYNN RESORTS, LIMITED AND SUBSIDIARIES
SUPPLEMENTAL DATA SCHEDULE
(dollars in thousands, except for win per unit per day, ADR, and REVPAR)
(unaudited) (continued)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
Percent
Change
2026
2025
Percent
Change
Encore Boston Harbor Supplemental Information
Operating revenues
Casino
$ 152,102
$ 161,654
(5.9)
$ 309,495
$ 321,033
(3.6)
Rooms
25,076
22,849
9.7
43,942
41,590
5.7
Food and beverage
20,110
18,730
7.4
38,096
38,637
(1.4)
Entertainment, retail and other
11,992
12,477
(3.9)
23,410
23,673
(1.1)
Total
$ 209,280
$ 215,710
(3.0)
$ 414,943
$ 424,933
(2.4)
Adjusted Property EBITDAR (6)
$ 56,084
$ 63,859
(12.2)
$ 106,603
$ 121,313
(12.1)
Casino statistics:
Average number of table games
172
172
—
172
172
—
Table drop (2)
$ 348,381
$ 338,184
3.0
$ 672,657
$ 678,246
(0.8)
Table games win (1)
$ 62,913
$ 72,016
(12.6)
$ 128,336
$ 141,898
(9.6)
Table games win %
18.1 %
21.3 %
19.1 %
20.9 %
Table games win per unit per day
$ 4,021
$ 4,601
(12.6)
$ 4,123
$ 4,558
(9.5)
Average number of slot machines
2,570
2,718
(5.4)
2,676
2,718
(1.5)
Slot machine handle
$ 1,391,561
$ 1,365,349
1.9
$ 2,736,640
$ 2,722,548
0.5
Slot machine win (3)
$ 110,444
$ 109,472
0.9
$ 220,024
$ 216,954
1.4
Slot machine win per unit per day
$ 472
$ 443
6.5
$ 454
$ 441
2.9
Poker rake
$ 5,530
$ 5,430
1.8
$ 10,904
$ 11,072
(1.5)
Room statistics:
Occupancy
92.7 %
92.9 %
89.3 %
90.5 %
ADR (4)
$ 445
$ 405
9.9
$ 407
$ 382
6.5
REVPAR (5)
$ 412
$ 376
9.6
$ 363
$ 346
4.9
(1)
Table games win is shown before discounts, commissions and the allocation of casino revenues to rooms, food and beverage and other revenues for services provided to casino customers on a complimentary basis.
(2)
In Macau, table drop is the amount of cash that is deposited in a gaming table's drop box plus cash chips purchased at the casino cage. In Las Vegas, table drop is the amount of cash and net markers issued that are deposited in a gaming table's drop box. At Encore Boston Harbor, table drop is the amount of cash and gross markers that are deposited in a gaming table's drop box.
(3)
Slot machine win is calculated as gross slot machine win minus progressive accruals and free play.
(4)
ADR is average daily rate and is calculated by dividing total room revenues including complimentaries (less service charges, if any) by total rooms occupied.
(5)
REVPAR is revenue per available room and is calculated by dividing total room revenues including complimentaries (less service charges, if any) by total rooms available.
(6)
Refer to accompanying reconciliations of Operating Income (Loss) to Adjusted Property EBITDAR and Net Income Attributable to Wynn Resorts, Limited to Adjusted Property EBITDAR.
Essential Utilities ve 2. čtvrtletí zvýšila tržby na 530,9 mil. USD, ale čistý zisk klesl na 105,7 mil. USD. Firma zároveň dál postupuje v plánovaném spojení s American Water, které má být uzavřeno v 1. čtvrtletí 2027.
BRYN MAWR, Pa.--(BUSINESS WIRE)--Essential Utilities Inc. (NYSE: WTRG) today reported results for the second quarter ended June 30, 2026.
Company Highlights
“Our commitment to operational efficiency, proactive cost optimization, and value driven customer experience investments underpins our confidence in driving strong performance for 2026. While our organization transitions towards the targeted Q1 2027 merger with American Water, we remain steadfast in our commitment to driving peak operational performance,” said Essential Utilities Chairman and Chief Executive Officer Christopher Franklin. “We are confident that the combination with American Water will bring exciting new opportunities, and we believe that, together, we will deliver significant benefits to our combined customers and shareholders. Crucially, both companies share a dedicated focus on smart capital deployment targeting measurable reliability and quality service. This will allow us to uphold our strong safety and reliability metrics while continuing to deliver affordable, cost-effective utility solutions,” Franklin added.
“The regulatory approval processes for our merger with American Water continue to progress. On June 22nd, we received approval of the merger from the Virginia State Corporation Commission, and on May 14th we received approval from the Public Utilities Commission of Ohio. Previously, we received regulatory approval for the merger from the Kentucky Public Service Commission.
As a reminder, we filed in all pertinent states before the end of 2025. In February, at the special shareholder meeting to approve the merger, approximately 95% of the voted shares were cast in favor of the transaction. This overwhelming mandate supports what we have believed from the start: that this combination creates a premier, multi-state utility with a high growth profile,” Franklin added.
Second Quarter 2026 Operating Results
Essential reported GAAP net income of $105.7 million and earnings per share of $0.37 for the second quarter of 2026, compared to GAAP net income of $107.8 million and earnings per share of $0.38 for the same period in 2025.
The second quarter Q2 2026 non-GAAP EPS of $0.38, reflects business results without the impact of merger-related expenses incurred in the quarter.
Revenues for the quarter were $530.9 million compared to $514.9 million in the second quarter of 2025, an increase of 3%. Additional revenues from regulatory recoveries and purchased gas costs were the main revenue drivers. Operations and maintenance expenses were $153.6 million for the second quarter of 2026, compared to $148.5 million in the second quarter of 2025, an increase of 3.5%, primarily due to increases in employee-related costs of $5.9 million, including annual merit increases and higher medical claims, and an increase in production costs for water and wastewater operations of $2.3 million, offset by a decrease in insurance expenses of $4.9 million primarily due to insurance recoveries, a decrease in bad debt expense of $2.9 million, a decrease in customer assistance surcharge costs of $1.5 million, which generally has an offsetting amount in revenues, and merger-related expenses of $1.2 million. Excluding merger related costs, O&M expenses increased by 2.6%.
Essential’s regulated water segment reported revenues for the quarter of $357.5 million, an increase of 7.6% compared to $332.3 million in the second quarter of 2026. Regulatory recoveries and increased volume were the largest contributors to the increase in revenues for the period. Operations and maintenance expenses for Essential’s regulated water segment increased to $109.4 million for the second quarter of 2026 compared to $100.1 million in the second quarter of 2025, driven by increased employee-related costs, increases in production costs for water and wastewater operations particularly purchased water and chemical costs, and additional operating costs associated with acquisitions of water and wastewater systems. Excluding the one-time items and the impact of abnormal weather, operations and maintenance expenses for the full year are expected to be in line with historic norms.
Essential’s regulated natural gas segment reported revenues for the quarter of $169.3 million, compared to $177.3 million in the second quarter of 2025, driven primarily by higher rates and surcharges, a decrease in purchased gas costs, and lower volumes due to warm weather conditions during the second quarter of 2026 as compared to 2025. Operations and maintenance expenses for Essential’s regulated natural gas segment were essentially flat at $49.9 million for the second quarter of 2026 compared to $49.8 million in the second quarter of 2025.
For the first six months of 2026, the Company reported revenues of $1,392.6 million, a 7.2% increase, primarily due to regulatory recoveries, increased purchased gas costs, and higher volumes in the regulated natural gas segment, compared to $1,298.5 million in the first half of 2025. Operations and maintenance expenses for the first half of 2026 totaled $329.4 million, compared to $286.3 million in 2025, including $17.5 million of merger related expenses in 2026. Net Income for the first half of 2026 totaled $330.1 million, or $1.16 per share, compared to $391.6 million, or $1.41 per share for the same period of 2025.
Dividend
As previously announced on July 29, 2026, Essential’s board of directors increased the quarterly cash dividend, 5.25% to $0.3606 per share of common stock. This dividend will be payable on September 1, 2026, to shareholders of record on August 11, 2026.
Essential Utilities has paid consecutive quarterly cash dividends for over 80 years and has increased the dividend 36 times in the last 35 years.
Financing
As of June 30, 2026, Essential’s weighted average cost of fixed-rate long-term debt was 4.16%, and the company had $960 million available on its credit lines.
Rate Activity
Thus far in 2026, the Company’s regulated water segment received rate awards or infrastructure surcharges that will increase annual revenues in Pennsylvania, Illinois, Ohio, North Carolina and Indiana by $43.9 million, and its regulated natural gas segment received rate awards or infrastructure surcharges in Kentucky and Pennsylvania of $12.7 million.
The Company currently has base rate cases or infrastructure surcharges pending in Texas, Virginia, Illinois, Indiana and New Jersey for its regulated water and wastewater segment for an estimated $79.7 million in incremental annual revenues. The company currently has a base rate case pending in Pennsylvania for its natural gas segment with a requested revenue increase of $163.2 million to support its Long-Term Infrastructure Improvement Plan, which involves the replacement and retirement of aging gas mains and the associated reduction of greenhouse gas emissions.
Capital Expenditures
Essential invested approximately $662.2 million in the first six months of 2026 to improve its regulated water and natural gas infrastructure systems and to enhance customer service across its operations. The Company continues to be a leader in the United States at replacing miles of aged underground utility pipes and is committed to maintaining elevated levels of infrastructure investment. Essential is on track to invest $1.7 billion in needed infrastructure investments in 2026.
Water Utility Growth by Acquisition
Essential’s continued growth by acquisition allows the company to provide safe and reliable water and wastewater service to a larger customer base than it could from organic customer growth alone.
Since 2015, Essential has acquired approximately $570 million in rate base and added more than 138,000 new customers or equivalent dwelling units to the company’s footprint.
In May 2026, the Company acquired Integra Water Texas, LLC's wastewater system in Bastrop County, Texas, for approximately $4.9 million. The Company has signed purchase agreements for additional water and wastewater systems in Pennsylvania, Texas, North Carolina and New Jersey that are pending closing and are expected to serve over 200,000 customers or equivalent dwelling units and total approximately $282 million in purchase price. The Company’s $276.5 million agreement to acquire the Delaware County Regional Water Quality Control Authority (DELCORA), a Pennsylvania sewer authority that serves approximately 198,000 equivalent dwelling units in the Philadelphia suburbs, is included among these signed purchase agreements.
The pipeline of potential water and wastewater municipal acquisitions the Company is actively pursuing represents approximately 400,000 total customers.
Merger with American Water Works Company, Inc.
The Company is continuing to progress through the process of obtaining the consents and approvals needed to successfully consummate the proposed merger with American Water. On February 10, 2026, shareholders of both companies voted overwhelmingly in favor of merger-related proposals. In 2025, Essential submitted applications for required regulatory approval in all states where applicable. On June 22, 2026, we received an order from the Virginia State Corporation Commission approving the merger. Previously we had obtained regulatory approval for the merger from public utility commissions in Kentucky and Ohio.
We continue to expect the merger to close in the first quarter of 2027.
Financial and Growth Guidance
The Company’s latest expectations are the following:
Anticipated growth in long-term earnings per share at a compound annual growth rate of 5% to 7% from the adjusted 2024 earnings per share of $1.97 (non-GAAP) for the three-year period through 2027. In 2026, regulated infrastructure investments are expected to be $1.7 billion. Multiyear plan to ensure that finished water does not exceed the federal maximum contaminant level of the six EPA-regulated PFAS chemicals. Guidance Assumptions
Essential Utilities does not guarantee future results of any kind. Guidance is subject to risks and uncertainties, including, without limitation, those factors outlined in the “Forward Looking Statements” of this release and the “Risk Factors” section of the company’s annual and quarterly reports filed with the Securities and Exchange Commission. The earnings per share and infrastructure investment include the municipal water and wastewater acquisitions for which the company has entered into signed purchase agreements as of the date the guidance was announced, but do not include DELCORA or other potential acquisitions from the company’s list of acquisition opportunities that currently represents over 400,000 customer equivalents. While the company remains confident in its ability to close DELCORA, for guidance purposes, DELCORA has been removed from all guidance metrics. The company’s guidance includes the expectation that the company will continue to issue equity and debt on an as-needed basis to support acquisitions and capital investment plans.
Essential Utilities believes that the non-GAAP financial measure “adjusted earnings per share” used for 2024 and identified as part of its multi-year financial and growth guidance supplements investors the ability to measure the company’s financial operating performance for 2024, including by adjustment, as compared to the Company’s operating performance in 2024.
2Q 2026 Earnings Call Information
Date: August 5th, 2026
Time: 11 a.m. EDT (please dial in by 10:45 a.m.)
Webcast and slide presentation link: https://www.essential.co/events-and-presentations/events-calendar
The call and presentation will be webcast live so interested parties may listen over the internet by logging on to Essential.co and following the link for Investors. The conference call will be archived in the Investor Relations section of the company’s website following the call.
About Essential
Essential Utilities, Inc. (NYSE: WTRG) delivers safe, clean, reliable services that improve quality of life for individuals, families, and entire communities. With a focus on water, wastewater, and natural gas, Essential is committed to sustainable growth, operational excellence, a superior customer experience, and premier employer status. We are advocates for the communities we serve and are dedicated stewards of natural lands, protecting thousands of acres of forests and other habitats throughout our footprint.
Operating as the Aqua and Peoples brands, Essential serves approximately 5.5 million people across nine states. Essential is one of the most significant publicly traded water, wastewater service and natural gas providers in the U.S. Learn more at www.essential.co.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which generally include words such as “believes,” “expects,” “intends,” “anticipates,” “estimates,” and similar expressions. The Company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent its views only as of today and should not be relied upon as representing its views as of any subsequent date. Readers are cautioned that such forward-looking statements are subject to a variety of risks and uncertainties that could cause the company’s actual results to differ materially from the statements contained in this release. Such forward-looking statements include, among others: the anticipated receipt of regulatory approvals for, and closing of, the company’s proposed merger with American Water; the guidance range of net income per diluted common share; the anticipated amount of infrastructure investment in 2026; and the Company’s anticipated use of equity and debt financing. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: the expected timing and likelihood of completion of our proposed merger with American Water; changes in the EPAs regulations; changes in the United States’ governmental policies, including those from the Executive Branch; disruptions in the global economy; potential disruptions in the supply chain for raw and finished materials; the continuation of the company's growth-through-acquisition program; general economic business conditions; the company’s ability to successfully execute any equity or debt financing transactions, including on an as needed basis; housing and customer growth trends; unfavorable weather conditions; the success of certain cost-containment initiatives; changes in regulations or regulatory treatment; the company’s ability to successfully close municipally owned systems presently under agreement and successfully complete other acquisitions and dispositions; and other factors discussed in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, which are filed with the Securities and Exchange Commission. For more information regarding risks and uncertainties associated with Essential's business, please refer to Essential's annual, quarterly, and other SEC filings. Essential is not under any obligation - and expressly disclaims any such obligation - to update or alter its forward-looking statements whether as a result of new information, future events, or otherwise.
Essential Utilities, Inc. and Subsidiaries Selected Operating Data (In thousands, except per share amounts) (Unaudited) Quarter Ended Six Months Ended June 30, June 30, 2026
2025
2026
2025
Operating revenues $
530,854
$
514,907
$
1,392,613
$
1,298,533
Operations and maintenance expense $
153,635
$
148,510
$
329,430
$
286,334
Net income $
105,725
$
107,827
$
330,117
$
391,616
Basic net income per common share $
0.37
$
0.38
$
1.16
$
1.41
Diluted net income per common share $
0.37
$
0.38
$
1.16
$
1.41
Basic average common shares outstanding 283,655
280,275
283,419
277,748
Diluted average common shares outstanding 284,088
280,725
283,998
278,335
Essential Utilities, Inc. and Subsidiaries Consolidated Statement of Operations (In thousands, except per share amounts) (Unaudited) Quarter Ended Six Months Ended June 30, June 30, 2026
2025
2026
2025
Operating revenues $
530,854
$
514,907
$
1,392,613
$
1,298,533
Cost & expenses: Operations and maintenance 153,635
148,510
329,430
286,334
Purchased gas 46,201
56,735
284,816
241,376
Depreciation 109,578
99,542
216,687
196,306
Amortization 3,714
3,977
7,334
6,590
Taxes other than income taxes 24,453
20,872
50,433
43,751
Total 337,581
329,636
888,700
774,357
Operating income 193,273
185,271
503,913
524,176
Other expense (income): Interest expense 89,111
79,809
176,418
161,874
Interest income (510
)
(301
)
(2,121
)
(530
)
Allowance for funds used during construction (5,739
)
(7,027
)
(11,499
)
(12,859
)
Other, net 1,295
391
1,220
98
Income before income taxes 109,116
112,399
339,895
375,593
Income tax expense (benefit) 3,391
4,572
9,778
(16,023
)
Net income $
105,725
$
107,827
$
330,117
$
391,616
Net income per common share: Basic $
0.37
$
0.38
$
1.16
$
1.41
Diluted $
0.37
$
0.38
$
1.16
$
1.41
Average common shares outstanding: Basic 283,655
280,275
283,419
277,748
Diluted 284,088
280,725
283,998
278,335
Essential Utilities, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands of dollars) (Unaudited) June 30, December 31, 2026
2025
Net property, plant and equipment 14,746,257
14,263,682
Current assets 465,309
610,396
Regulatory assets and other assets 4,730,421
4,590,767
19,941,987
19,464,845
Total equity 7,018,256
6,857,456
Long-term debt, excluding current portion, net of debt issuance costs and unamortized discount on debt 8,421,198
8,110,167
Current portion of long-term debt and loans payable 83,312
171,961
Other current liabilities 515,677
592,522
Deferred credits and other liabilities 3,903,544
3,732,739
19,941,987
19,464,845
Essential Utilities, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures
(In Thousands, except per share amounts)
The Company is providing disclosure of the reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures. The Company believes that the non-GAAP financial measures "adjusted income” and “adjusted diluted income per common share” provide investors the ability to measure the Company's financial operating performance by adjustment, which is more indicative of the Company's ongoing operating performance. The Company further believes that the presentation of these non-GAAP financial measures is useful to investors as a more meaningful way to compare the Company's operating performance against its guidance range for 2024. This reconciliation includes a presentation of the non-GAAP financial measures “adjusted income” and “adjusted diluted income per common share” and have been adjusted for the following items: (1) During the first quarter of 2024, the Company completed the sale of its interest in three non-utility local microgrids and distributed energy projects and recognized a gain of $91,236, net of transaction expenses. In October 2023, the Company completed the sale of its regulated natural gas utility assets in West Virginia. In 2024, the Company received additional proceeds from the sale of regulated natural gas utility assets in West Virginia and post-transaction activities. (2) Estimated impact to Peoples Natural Gas (PNG) operating revenues from warmer than normal weather conditions during 2024 and nonrecurring usage. These impacts are partially offset by favorable water consumption in 2024 due to drier than normal weather conditions. (3) The income tax impact of the non-GAAP adjustments described above. These financial measures are measures of the Company's operating performance that do not comply with U.S. generally accepted accounting principles (GAAP), and are thus considered to be “non-GAAP financial measures” under applicable Securities and Exchange Commission regulations. These non-GAAP financial measures are derived from our consolidated financial information, if available, and is provided to supplement the Company's GAAP measures, and should not be considered as a substitute for measures of financial performance prepared in accordance with GAAP. The following reconciles our GAAP results to the non-GAAP information we disclose: Year Ended
December 31, 2024 Net Income (GAAP financial measure) $
595,314
Adjustments: (1) Gain on sales of assets and related transaction activities (94,024
)
(2) Adjustments for estimated effects of unfavorable weather (addback) $
18,749
(3) Income tax effect of non-GAAP adjustments $
20,859
Adjusted income (Non-GAAP financial measure) $
540,898
Net income per common share (GAAP financial measure (Earnings per share)): Basic $
2.17
Diluted $
2.17
Adjusted income per common share (Non-GAAP financial measure (Adjusted Earnings per share)): Basic $
1.97
Diluted $
1.97
Average common shares outstanding: Basic 273,914
Diluted 274,421
Essential Utilities, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share amounts) (Unaudited) The Company is providing disclosure of the reconciliation of adjusted earnings per share, a non-GAAP financial measures referenced in this release, to the most comparable GAAP financial measure. Adjusted earnings per share does not comply with U.S. generally accepted accounting principles (GAAP), and is thus considered to be a “non-GAAP financial measures” under applicable SEC regulations.
Adjusted earnings per share is one of the primary metrics used by management to evaluate the Company’s financial performance and compare it to that of its peers, evaluate the effectiveness of the Company’s business strategies, and in connection with executive compensation decisions. This measure is also frequently used by analysts, investors, and others to evaluate industry peers. Further, the Company believes adjusted earnings per share is helpful in highlighting trends in the Company’s results because it allows for more consistent comparisons of performance between periods by excluding gains and losses that are non-operational in nature or outside the control of management. The Company further believes that this non-GAAP financial measure is useful to investors as a more meaningful way to compare the Company’s operating performance against its guidance. This non-GAAP measure does, however, have certain limitations and should not be considered as an alternative to earnings per share or any other performance.
Adjusted earnings per share adjusts for the following items:
(1) costs associated with the pending merger with American Water; and (2) the income tax impact of the non-GAAP adjustment described above. Three Months Ended June 30, 2026 Net income (GAAP financial measure) $
105,725
Adjustments: (1) Costs associated with the pending merger with American Water 1,191
(2) The income tax impact of the non-GAAP adjustment described above (321
)
Adjusted income (Non-GAAP financial measure) $
106,595
Net income per common share (GAAP financial measure): Basic $
0.37
Diluted $
0.37
Adjusted income per common share (Non-GAAP financial measure): Basic $
0.38
Diluted $
0.38
Average common shares outstanding: Basic 283,655
Diluted 284,088
Essential Utilities, Inc. and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share amounts) (Unaudited) The Company is providing disclosure of the reconciliation of adjusted earnings per share, a non-GAAP financial measures referenced in this release, to the most comparable GAAP financial measure. Adjusted earnings per share does not comply with U.S. generally accepted accounting principles (GAAP), and is thus considered to be a “non-GAAP financial measures” under applicable SEC regulations.
Adjusted earnings per share is one of the primary metrics used by management to evaluate the Company’s financial performance and compare it to that of its peers, evaluate the effectiveness of the Company’s business strategies, and in connection with executive compensation decisions. This measure is also frequently used by analysts, investors, and others to evaluate industry peers. Further, the Company believes adjusted earnings per share is helpful in highlighting trends in the Company’s results because it allows for more consistent comparisons of performance between periods by excluding gains and losses that are non-operational in nature or outside the control of management. The Company further believes that this non-GAAP financial measure is useful to investors as a more meaningful way to compare the Company’s operating performance against its guidance. This non-GAAP measure does, however, have certain limitations and should not be considered as an alternative to earnings per share or any other performance. Adjusted earnings per share adjusts for the following items: (1) costs associated with the pending merger with American Water; and (2) the income tax impact of the non-GAAP adjustment described above. Six Months Ended June 30, 2026 Net income (GAAP financial measure) $
330,117
Adjustments: (1) Costs associated with the pending merger with American Water 17,521
(2) The income tax impact of the non-GAAP adjustment described above (4,716
)
Adjusted income (Non-GAAP financial measure) $
342,922
Net income per common share (GAAP financial measure): Basic $
1.16
Diluted $
1.16
Adjusted income per common share (Non-GAAP financial measure): Basic $
8x8 oznámila rekordní tržby za 1. čtvrtletí fiskálního roku 2027: celkové tržby vzrostly o 5 % na 190,2 milionu USD. Firma zároveň překonala své odhady u tržeb, provozní marže i provozního peněžního toku.
CAMPBELL, Calif.--(BUSINESS WIRE)--8x8, Inc. (NASDAQ: EGHT), a leading global business communications platform provider, today reported financial results for the first quarter of fiscal year 2027 ended June 30, 2026.
"We delivered a strong start to fiscal 2027, exceeding our guidance for revenue, non-GAAP operating margin and operating cash flow, while continuing to build momentum across the business," said Samuel Wilson, Chief Executive Officer at 8x8, Inc. "Organizations are looking for practical ways to use AI to improve customer experiences and employee productivity without adding complexity. Our strategy has been to build a unified platform that brings together communications, customer engagement and AI, making it easier for customers to achieve those outcomes. We are encouraged by the progress we are seeing across the business and remain focused on disciplined execution to drive long-term growth and shareholder value."
First Quarter of Fiscal 2027 Financial Results:
Total revenue increased 5% to $190.2 million, compared to $181.4 million in the first quarter of fiscal 2026. Service revenue increased 5% to $185.3 million, compared to $176.3 million in the first quarter of fiscal 2026. GAAP gross margin was 61%, compared to 66% in the first quarter of fiscal 2026. Non-GAAP gross margin was 62%, compared to 68% in the first quarter of fiscal 2026. GAAP operating income was $4.4 million, compared to $0.6 million in the first quarter of fiscal 2026. Non-GAAP operating income was $18.9 million, compared to $16.3 million in the first quarter of fiscal 2026. GAAP net loss was $1.2 million, compared to $4.3 million in the first quarter of fiscal 2026. Non-GAAP net income was $13.6 million, compared to $10.7 million in the first quarter of fiscal 2026. Cash provided by operating activities was $17.0 million for the first quarter of fiscal 2027, compared to $11.9 million in the first quarter of fiscal 2026. Cash, cash equivalents, and restricted cash were $92.3 million on June 30, 2026, compared to $95.0 million at the end of fiscal 2026. The balance on June 30, 2026 reflects a $14.5 million principal payment on the 2024 Term Loan made during the first quarter of fiscal 2027. Total principal amount of debt outstanding on June 30, 2026 was $309.4 million, compared to $323.9 million at the end of fiscal 2026. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and other information relating to non-GAAP measures is included in the supplemental reconciliation at the end of this release.
Recent Business Highlights:
Platform Innovation Highlights
8x8 continued to focus on delivering enterprise-grade intelligence and automation to the entire organization, with new capabilities added to the 8x8 Platform for CX, including:
8x8 Pulse, available now for select 8x8 customers, to capture and index interactions across calls, meetings, emails, and support tickets, making conversation data searchable and actionable across the organization. 8x8 Resolve, available now for select 8x8 customers, is a new critical communications solution that delivers incident and emergency alerts to frontline workforces through the 8x8 Platform for CX, eliminating the need for separate alerting tools. 8x8 AI Routing, available now for select 8x8 customers, to dynamically match customers to the best-qualified expert across the organization and use interaction data, including transcripts, sentiment, and historical patterns, to automate skills configuration, eliminating months of manual setup and stale profiles. Support for multiple AI models, voice-powered agent building, and one-click connectors to third-party business applications in 8x8 AI Studio, enabling teams to deploy AI agents without additional vendors or custom development. The new 8x8 App Store that provides self-serve capability extensions, including AI Studio and 8x8 Workforce Management. A native integration with Synthflow that extends AI voice capabilities for joint customers within the existing platform. Automated assistive quality evaluations and enhanced forecasting and scheduling 8x8 Workforce Management, available at no additional cost to existing 8x8 Contact Center customers. Industry Recognition
Named Best Communications Provider Enterprise and recognized as the Women in Telecoms Champion in the Comms Council UK 2026 Awards. Won the Retail Systems 2026 Awards in the Contact Centre and Digital Service Innovation category. 8x8 Work was named a winner in TMCNet’s 2026 Unified Communications Product of the Year Awards. 8x8 Contact Center was named a winner in CUSTOMER Magazine’s 2026 Contact Center Technology Awards. Recognized in the 2026 Gartner® Magic Quadrant™ for Unified Communications as a Service. Recognized as a Leader in the Metrigy CCaaS MetriRank 2026. Leadership Updates
Appointed Colleen Martin-Garcia as Senior Vice President and Chief Accounting Officer, overseeing the global accounting organization, including financial close and reporting, revenue, payroll and equity, and treasury functions across the U.S., EMEA, and APAC regions. Second Quarter and Fiscal 2027 Financial Outlook
Management provides expected ranges for selected financial and operating metrics based on its evaluation of the current business environment. The Company emphasizes that these expectations are subject to various important cautionary factors referenced in the section entitled "Caution Concerning Forward-Looking Statements" below.
"We continue to execute against a financial model designed to support long-term value creation," said Kevin Kraus, Chief Financial Officer at 8x8, Inc. "As customers increasingly adopt our usage-based communications and AI solutions, revenue mix will continue to evolve. While those offerings carry a different gross margin profile than SaaS software subscriptions, they also expand our market opportunity and contribute meaningful operating profit and cash flow as they scale. Our focus remains on growing operating income dollars, generating cash and allocating capital with discipline."
Second Quarter of Fiscal 2027 Ending September 30, 2026
Service revenue in the range of $180 million to $185 million. Total revenue in the range of $185 million to $190 million. Non-GAAP gross margin in the range of approximately 60.5% to 61.5%. Non-GAAP operating margin in the range of approximately 8.0% to 9.0%. Interest expense of approximately $3.9 million. Cash interest of approximately $5.9 million. Non-GAAP net income per share, diluted, in the range of $0.07 to $0.08, based on a fully-diluted weighted-average share count of approximately 149 million shares. Cash flow from operations in the range of $9 million to $11 million. Fiscal Year 2027 Ending March 31, 2027
Service revenue in the range of $725 million to $745 million. Total revenue in the range of $745 million to $765 million. Non-GAAP gross margin in the range of 60.5% to 61.5%. Non-GAAP operating margin in the range of 8.8% to 9.8%. Non-GAAP net income per share, diluted, in the range of $0.33 to $0.38, based on a fully-diluted weighted-average share count of approximately 150 million shares. Cash flow from operations in the range of $45 million to $52 million. The Company does not reconcile its forward-looking estimates of non-GAAP gross margin to the corresponding GAAP measure of GAAP gross margin, non-GAAP operating margin to the corresponding GAAP measure of GAAP operating margin or non-GAAP net income per share, basic and diluted, to the corresponding GAAP measure of GAAP net income (loss) per share due to the significant variability of, and difficulty in making accurate forecasts and projections with regards to, the various expenses excluded by these metrics. For example, future hiring and employee turnover may not be reasonably predictable, stock-based compensation expense depends on variables that are largely not within the control of nor predictable by management, such as the market price of 8x8 shares, and may also be significantly impacted by events like acquisitions, the timing and nature of which are difficult to predict with accuracy. The actual amounts of these excluded items could have a significant impact on the Company's GAAP gross margin, GAAP operating margin and GAAP net income (loss) per share, basic and diluted. Accordingly, management believes that reconciliations of these forward-looking non-GAAP financial measures to their corresponding GAAP measures are not available without unreasonable effort. See the "Explanation of GAAP to Non-GAAP Reconciliation" below for the definition of non-GAAP operating margin and non-GAAP net income per share, basic and diluted.
Conference Call Information:
Management will host a conference call to discuss earnings results on August 4, 2026 at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call is expected to last approximately 60 minutes. Participants may:
Register to participate in the live call at https://register-conf.media-server.com/register/BIf18cb0ada2f94e8c8a55095f5670b608 Access the live webcast and replay from the Company’s investor relations events and presentations page at https://www.investors.8x8.com/news-events/events-presentations. Participants should plan to dial in or log on 10 minutes prior to the start time. The webcast will be archived on 8x8's website for a period of at least 30 days. For additional information, visit https://www.investors.8x8.com/.
About 8x8 Inc.
8x8, Inc. (NASDAQ: EGHT) connects people and organizations through seamless communication on one of the industry's most integrated platforms for Customer Experience – combining Contact Center, Unified Communications, and CPaaS solutions. The 8x8® Platform for CX integrates AI to enable personalized customer journeys, drive operational excellence and insights, and facilitate team collaboration. As a business communications leader, the company helps customer experience and IT leaders around the world become the heartbeat of their organizations, empowering them to unlock the potential of every interaction. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, X, and Facebook.
Copyright 2026 8x8, Inc. 8x8, Engage and associated brand assets are trademarks of 8x8, Inc. All rights reserved. GARTNER and PEER INSIGHTS are registered trademarks and service marks of Gartner, Inc. and/or its affiliates. All rights reserved.
Caution Concerning Forward-Looking Statements:
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. Any statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, words such as "may," "will," "should," "estimates," "predicts," "potential," "continue," "strategy," "believes," "anticipates," "plans," "expects," "intends," and similar expressions are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding: changing industry trends; market opportunities; the potential success and impact of our investments in artificial intelligence (“AI”) technologies; our ability to drive increased platform and multi-product adoption; our ability to increase profitability and cash flow; our position in the market and the direction of our innovation; the expected capabilities, availability and customer reception of our products and services; and our financial outlook, revenue growth, and profitability.
You should not place undue reliance on such forward-looking statements. Actual results could differ materially from those projected in forward-looking statements depending on a variety of factors, including, but not limited to: customer adoption and demand for our products may be lower than we anticipate; the impact of economic downturns on us and our customers; ongoing volatility and conflict in the political environment; general inflationary pressures; competitive dynamics of the cloud communication and collaboration markets in which we compete, as well as our competitors’ use of AI, may change in ways we are not anticipating; third parties may assert ownership rights in our IP, which may limit or prevent our continued use of the core technologies behind our solutions; our customer churn rate may be higher than we anticipate; and our investments in new products and acquisitions may not generate the revenue or efficiencies that we expect. As a result, we could fail to meet the revenue or operating margin targets we forecast in our guidance, for a particular quarter or for the full fiscal year.
For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's reports on Forms 10-K and 10-Q, as well as other reports that 8x8 files from time to time with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and 8x8 undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.
Explanation of GAAP to Non-GAAP Reconciliation
The Company has provided in this release financial information that has not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). Management uses these Non-GAAP financial measures internally to understand, manage, and evaluate the business, and to make operating decisions. Management believes they are useful to investors, as a supplement to GAAP measures, in evaluating the Company's ongoing operational performance. Management also believes that some of 8x8’s investors use these Non-GAAP financial measures as an additional tool in evaluating 8x8's "core operating performance" in the ordinary, ongoing, and customary course of the Company's operations. Core operating performance excludes items that are non-cash, not expected to recur, or not reflective of ongoing financial results. Management also believes that looking at the Company’s core operating performance provides consistency in period-to-period comparisons and trends.
These Non-GAAP financial measures may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies, which limits the usefulness of these measures for comparative purposes. Management recognizes that these Non-GAAP financial measures have limitations as analytical tools, including the fact that management must exercise judgment in determining which types of items to exclude from the Non-GAAP financial information. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these Non-GAAP financial measures to their most directly comparable GAAP financial measures in the table titled "Reconciliation of GAAP to Non-GAAP Financial Measures". Detailed explanations of the adjustments from comparable GAAP to Non-GAAP financial measures are as follows:
Non-GAAP Costs of Revenue, Costs of Service Revenue and Costs of Other Revenue
Non-GAAP Costs of Revenue includes: (i) Non-GAAP Cost of Service Revenue, which is Cost of Service Revenue excluding amortization of intangible assets, stock-based compensation expense and related employer payroll taxes, transaction-related costs, and certain severance, transition and contract exit costs; and (ii) Non-GAAP Cost of Other Revenue, which is Cost of Other Revenue excluding stock-based compensation expense and related employer payroll taxes, and certain severance, transition and contract exit costs.
Non-GAAP Service Revenue Gross Margin, Other Revenue Gross Margin, and Total Revenue Gross Margin
Non-GAAP Service Revenue Gross Profit and Margin as a percentage of Service Revenue and Non-GAAP Other Revenue Gross Profit and Margin as a percentage of Other Revenue are computed as Service Revenue less Non-GAAP Cost of Service Revenue divided by Service Revenue and Other Revenue less Non-GAAP Cost of Other Revenue divided by Other Revenue, respectively. Non-GAAP Total Revenue Gross Profit and Margin as a percentage of Total Revenue is computed as Total Revenue less Non-GAAP Cost of Service Revenue and Non-GAAP Cost of Other Revenue divided by Total Revenue. Management believes the Company’s investors benefit from understanding these adjustments and from an alternative view of the Company’s Cost of Service Revenue and Cost of Other Revenue, as well as the Company's Service, Other and Total Revenue Gross Margin performance compared to prior periods and trends.
Non-GAAP Operating Profit and Non-GAAP Operating Margin
Non-GAAP Operating Profit excludes: amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, transaction-related costs, certain legal and regulatory costs, and certain severance, transition and contract exit costs from Operating Profit. Non-GAAP Operating Margin is Non-GAAP Operating Profit divided by Revenue. Management believes that these exclusions provide investors with a supplemental view of the Company’s ongoing operating performance.
Non-GAAP Net Income and Adjusted EBITDA
Non-GAAP Net Income excludes: amortization of acquired intangible assets, stock-based compensation expense and related employer payroll taxes, transaction-related costs, certain legal and regulatory costs, certain severance, transition and contract exit costs, amortization of debt discount and issuance cost, loss on debt extinguishment, gain on remeasurement of warrants, other income and income tax expense effects. Adjusted EBITDA excludes interest expense, provision for income taxes, depreciation, amortization of capitalized internal-use software costs, and other expense (income), net from non-GAAP net income. Management believes the Company’s investors benefit from understanding these adjustments and an alternative view of our net income performance as compared to prior periods and trends.
Non-GAAP Net Income Per Share – Basic and Non-GAAP Net Income Per Share - Diluted
Non-GAAP Net Income Per Share – Basic is Non-GAAP Net Income divided by the weighted-average basic shares outstanding. Non-GAAP Net Income Per Share – Diluted is Non-GAAP Net Income divided by the weighted-average diluted shares outstanding. Diluted shares outstanding include the effect of potentially dilutive securities from stock-based benefit plans and convertible senior notes. These potentially dilutive securities are excluded from the computation of net loss per share attributable to common stockholders on a GAAP basis because the effect would have been anti-dilutive. Stock-based benefit plans are added for the computation of diluted net income per share on a non-GAAP basis in periods when 8x8 has net profit on a non-GAAP basis as their inclusion provides a better indication of 8x8’s underlying business performance. Management believes the Company’s investors benefit by understanding our Non-GAAP net income performance as reflected in a per share calculation as ways of measuring performance by ownership in the Company. Management believes these adjustments offer investors a useful view of the Company’s diluted net income per share as compared to prior periods and trends.
Management evaluates and makes decisions about the Company’s business operations based on Non-GAAP financial information by excluding items management does not consider to be “core costs” or “core proceeds.” Management believes some investors also evaluate our "core operating performance" as a means of evaluating our performance in the ordinary, ongoing, and customary course of our operations. Management excludes the amortization of acquired intangible assets, which primarily represents a non-cash expense of technology and/or customer relationships already developed, to provide a supplemental way for investors to compare the Company’s operations pre-acquisition to those post-acquisition and to those of our competitors that have pursued internal growth strategies. Stock-based compensation expense has been excluded because it is a non-cash expense and relies on valuations based on future conditions and events, such as the market price of 8x8 common stock, that are difficult to predict and/or largely not within the control of management. The related employer payroll taxes for stock-based compensation are excluded since they are incurred only due to the associated stock-based compensation expense. Transaction-related costs consist of external and incremental costs resulting directly from merger and acquisition and strategic investment activities such as legal and other professional services, due diligence, integration, transaction and other closing costs, which are costs that vary significantly in amount and timing. Legal and regulatory costs include litigation and other professional services, as well as certain tax and regulatory liabilities. Severance, transition and contract exit costs include employee termination benefits, executive severance agreements, and cancellation of certain contracts. Debt amortization expenses relate to the non-cash accretion of the debt discount. A loss on debt extinguishment relates to the prepayment of the Company's debt and is primarily due to the write-off of unamortized debt discount and issuance costs. Gains and losses on the remeasurement of warrants are due to changes in the fair value of the Company's detachable warrant liability.
8X8, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Unaudited, in thousands, except per share amounts)
Three Months Ended June 30,
2026
2025
Service revenue
$
185,346
$
176,308
Other revenue
4,824
5,053
Total revenue
190,170
181,361
Cost of service revenue
67,635
53,822
Cost of other revenue
6,164
7,099
Total cost of revenue
73,799
60,921
Gross profit
116,371
120,440
Operating expenses:
Research and development
28,406
28,364
Sales and marketing
58,750
68,184
General and administrative
24,836
23,327
Total operating expenses
111,992
119,875
Income from operations
4,379
565
Interest expense
(4,179
)
(3,968
)
Other income (expense), net
(408
)
364
Loss before provision for income taxes
(208
)
(3,039
)
Provision for income taxes
992
1,276
Net loss
$
(1,200
)
$
(4,315
)
Net loss per share:
Basic and diluted
$
(0.01
)
$
(0.03
)
Weighted average number of shares:
Basic and diluted
141,973
134,809
Comprehensive income (loss)
Net loss
$
(1,200
)
$
(4,315
)
Foreign currency translation adjustment
99
6,258
Comprehensive income (loss)
$
(1,101
)
$
1,943
8X8, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands, except per share amounts)
June 30, 2026
March 31, 2026
ASSETS
Current assets:
Cash and cash equivalents
$
90,595
$
93,260
Restricted cash
1,707
1,702
Accounts receivable, net
70,428
57,004
Deferred contract acquisition costs
23,174
25,193
Other current assets
37,809
32,650
Total current assets
223,713
209,809
Property and equipment, net
44,552
45,821
Operating lease, right-of-use assets
28,184
26,672
Intangible assets, net
53,776
57,589
Goodwill
276,408
276,372
Deferred contract acquisition costs, non-current
34,235
34,562
Other assets, non-current
11,938
11,996
Total assets
$
672,806
$
662,821
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
38,121
$
36,714
Accrued and other liabilities
92,065
69,867
Operating lease liabilities
10,693
10,357
Deferred revenue
35,334
36,699
Term loan, current
37,277
39,218
Total current liabilities
213,490
192,855
Operating lease liabilities, non-current
39,473
39,100
Deferred revenue, non-current
247
181
Convertible senior notes, non-current
200,091
199,830
Term loan, non-current
69,985
82,431
Other liabilities, non-current
1,703
1,815
Total liabilities
524,989
516,212
Stockholders' equity:
Preferred stock: $0.001 par value, 5,000 shares authorized, none issued and outstanding as of June 30, 2026 and March 31, 2026, respectively
—
—
Common stock: $0.001 par value, 300,000 shares authorized, 143,970 shares and 141,164 shares issued and outstanding at June 30, 2026 and March 31, 2026, respectively
144
141
Additional paid-in capital
1,041,051
1,038,745
Accumulated other comprehensive loss
(6,105
)
(6,204
)
Accumulated deficit
(887,273
)
(886,073
)
Total stockholders' equity
147,817
146,609
Total liabilities and stockholders' equity
$
672,806
$
662,821
8X8, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Three Months Ended June 30,
2026
2025
Cash flows from operating activities:
Net loss
$
(1,200
)
$
(4,315
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation
1,410
1,690
Amortization of intangible assets
3,835
3,501
Amortization of capitalized internal-use software costs
2,856
2,673
Amortization of debt discount and issuance costs
330
336
Amortization of deferred contract acquisition costs
7,051
8,956
Allowance for credit losses
607
290
Operating lease expense, net of accretion
2,595
2,854
Stock-based compensation expense
4,055
6,352
Loss on debt extinguishment
44
81
Gain on remeasurement of warrants
(71
)
(209
)
Other
188
(368
)
Changes in assets and liabilities:
Accounts receivable, net
(14,407
)
(9,503
)
Deferred contract acquisition costs
(4,611
)
(4,471
)
Other current and non-current assets
(9,273
)
(2,997
)
Accounts payable and accrued liabilities
24,979
3,347
Deferred revenue
(1,354
)
3,656
Net cash provided by operating activities
17,034
11,873
Cash flows from investing activities:
Purchases of property and equipment
(694
)
(377
)
Capitalized internal-use software costs
(2,225
)
(4,039
)
Payments for other investing activities
(229
)
—
Net cash used in investing activities
(3,148
)
(4,416
)
Cash flows from financing activities:
Repurchase of common stock
—
(1,848
)
Repayment of principal on term loan
(14,500
)
(15,000
)
Other financing activities
(1,684
)
(489
)
Net cash used in financing activities
(16,184
)
(17,337
)
Effect of exchange rate changes on cash
(362
)
2,788
Net decrease in cash and cash equivalents
(2,660
)
(7,092
)
Cash, cash equivalents and restricted cash, beginning of year
94,962
89,324
Cash, cash equivalents and restricted cash, end of period
$
92,302
$
82,232
8X8, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited, in thousands, except per share amounts)
Three Months Ended
June 30, 2026
June 30, 2025
Cost of Revenue:
GAAP cost of service revenue (as a percentage of service revenue)
$
67,635
36.5
%
$
53,822
30.5
%
Amortization of acquired intangible assets
(514
)
(507
)
Stock-based compensation expense and related employer payroll taxes
(201
)
(582
)
Transaction-related costs
(33
)
—
Severance, transition and contract exit costs
91
(944
)
Non-GAAP cost of service revenue (as a percentage of service revenue)
$
66,978
36.1
%
$
51,789
29.4
%
GAAP service revenue gross profit (as a percentage of service revenue)
$
117,711
63.5
%
$
122,486
69.5
%
Non-GAAP service revenue gross profit (as a percentage of service revenue)
$
118,368
63.9
%
$
124,519
70.6
%
GAAP cost of other revenue (as a percentage of other revenue)
$
6,164
127.8
%
$
7,099
140.5
%
Stock-based compensation expense and related employer payroll taxes
(84
)
(147
)
Severance, transition and contract exit costs
(105
)
(353
)
Non-GAAP cost of other revenue (as a percentage of other revenue)
$
5,975
123.9
%
$
6,599
130.6
%
GAAP other revenue gross loss (as a percentage of other revenue)
$
(1,340
)
(27.8
)%
$
(2,046
)
(40.5
)%
Non-GAAP other revenue gross loss (as a percentage of other revenue)
$
(1,151
)
(23.9
)%
$
(1,546
)
(30.6
)%
GAAP gross profit (as a percentage of total revenue)
$
116,371
61.2
%
$
120,440
66.4
%
Non-GAAP gross profit (as a percentage of total revenue)
$
117,217
61.6
%
$
122,973
67.8
%
Operating Profit:
GAAP income from operations (as a percentage of total revenue)
$
4,379
2.3
%
$
565
0.3
%
Amortization of acquired intangible assets
3,835
3,501
Stock-based compensation expense and related employer payroll taxes
4,305
6,909
Transaction-related costs
2,517
—
Legal and regulatory costs
566
835
Severance, transition and contract exit costs
3,285
4,523
Non-GAAP operating profit (as a percentage of total revenue)
$
18,887
9.9
%
$
16,333
9.0
%
Net Income (Loss):
GAAP net loss (as a percentage of total revenue)
$
(1,200
)
(0.6
)%
$
(4,315
)
(2.4
)%
Amortization of acquired intangible assets
3,835
3,501
Stock-based compensation expense and related employer payroll taxes
4,305
6,909
Transaction-related costs
2,517
—
Legal and regulatory costs
566
835
Severance, transition and contract exit costs
3,285
4,523
Amortization of debt discount and issuance cost
330
336
Loss on debt extinguishment
44
81
Gain on warrants remeasurement
(71
)
(209
)
Other income (1)
—
(926
)
Income tax expense effects, net (2)
—
—
Non-GAAP net income (as a percentage of total revenue)
$
13,611
7.2
%
$
10,735
5.9
%
Interest expense(3)
3,849
4,558
Provision for income taxes
992
1,276
Depreciation
1,410
1,690
Amortization of capitalized internal-use software costs
2,856
2,673
Other expense (income), net
435
(236
)
Adjusted EBITDA (as a percentage of total revenue)
$
23,153
12.2
%
$
20,696
11.4
%
Shares used in computing net income (loss) per share amounts:
Basic
141,973
134,809
Diluted
147,065
138,569
GAAP net loss per share - Basic and diluted
$
(0.01
)
$
(0.03
)
Non-GAAP net income per share - Basic
$
0.10
$
0.08
Non-GAAP net income per share - Diluted
$
0.09
$
0.08
(1) Amount includes capitalized interest related to property, plant and equipment from general borrowing costs during the three months ended June 30, 2025.
(2) Non-GAAP adjustments do not have a material impact on our federal income tax provision due to past non-GAAP losses.
(3) Amounts represent contractual interest expense related to our outstanding debt and does not include capitalized interest and amortization of debt discount and issuance costs.
GXO ve 2. čtvrtletí zvýšila tržby na 3,4 miliardy USD, meziročně o 4,3 %, a upravený zisk na akcii na 0,59 USD. Zároveň potvrdila střed plánu pro celoroční upravený EBITDA a upravený zředěný EPS.
Revenue of $3.4 billion, up 4.3% year over year, with organic revenue growth of 3.4%$410 million of new business wins, up 34% year over year, with approximately 40% in strategic growth verticals — aerospace & defense, technology, industrial and life sciencesApproximately $1 billion of incremental 2026 revenue, up 29% year over year, and $353 million of incremental 2027 revenue already securedMaintains mid-points of full-year 2026 guidance for adjusted EBITDA and adjusted diluted EPS GREENWICH, Conn., Aug. 04, 2026 (GLOBE NEWSWIRE) -- GXO Logistics, Inc. (NYSE: GXO) today announced results for the second quarter 2026.
Patrick Kelleher, chief executive officer of GXO, said, “This quarter marks five years since GXO became an independent public company, and we delivered results that reflect the momentum building across our business, including our strongest new business wins in three years. Revenue grew to $3.4 billion, with all three regions growing organically, underscoring the resiliency and predictability of our business model. We signed approximately $410 million of new business, up 34% year over year, led by marquee wins with some of the world’s leading brands and deeper penetration of our strategic growth verticals — aerospace & defense, technology, industrial and life sciences.
“Three priorities are powering our path forward: sharpening our commercial strategy, strengthening execution through the GXO Way, and leading in AI and next-generation automation through GXO IQ. We made meaningful progress in each area this quarter. Our commercial momentum is particularly evident in North America, a key growth market, where our wins in the first half of the year increased 85% over the same time last year. We launched the GXO Way playbook and GXO IQ moved from platform launch to scaled deployment, positioning us to realize greater value from AI across our network.
“With over $1 billion of incremental revenue already secured for 2026 and a commercial pipeline that has expanded from $2.3 billion at the end of the quarter to approximately $2.7 billion in July, we have strong visibility into the balance of the year and are already building momentum into 2027.”
Second Quarter 2026 Results
Revenue increased to $3.4 billion, up 4.3% year over year, compared with $3.3 billion for the second quarter 2025. Organic revenue1 grew by 3.4%.
Net income was $27 million, compared with $28 million for the second quarter 2025. Diluted earnings per share was $0.22, compared with $0.23 for the second quarter 2025.
Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA1”) increased to $219 million, compared with $212 million for the second quarter 2025.
Adjusted diluted earnings per share (“adjusted diluted EPS1”) increased to $0.59, compared with $0.57 for the second quarter 2025.
GXO generated $76 million of cash flow from operations, compared with $3 million for the second quarter 2025. In the second quarter of 2026, GXO generated $12 million of free cash flow1, compared with $43 million used for the second quarter 2025.
Cash Balances and Outstanding Debt
As of June 30, 2026, cash and cash equivalents (excluding restricted cash), total debt outstanding and net debt1 were $769 million, $3.2 billion and $2.4 billion, respectively.
2026 Guidance2
The Company updated guidance for the full year 2026 as follows:
Organic revenue growth1 of 4% to 5%;Adjusted EBITDA1 of $945 million to $965 million (previously $935 million to $975 million);Adjusted diluted EPS1 of $2.95 to $3.15 (previously $2.90 to $3.20); andFree cash flow conversion1 of 30% to 40%. Investor Day
The Company will host its 2026 Investor Day on November 16, 2026, at the New York Stock Exchange, where management will discuss its long-term strategy, financial framework and value creation opportunities. The in-person event will begin at 9:00 a.m. Eastern Time and will also be webcast live. Webcast and presentation materials will be available on the Company’s Investor Relations website at investors.gxo.com. A replay will be available following the event.
Conference Call
GXO will hold a conference call on Wednesday, August 5, 2026, at 8:30 a.m. Eastern Time. Participants can call toll free (from US/Canada) 877-407-8029; international callers dial +1 201-689-8029. Conference ID: 13761436. A live webcast of the conference will be available on the Investor Relations area of the company’s website, investors.gxo.com. The conference will be archived until August 20, 2026. To access the replay by phone, call toll-free (from US/Canada) 877-660-6853; international callers dial +1 201-612-7415. Use participant passcode 13761436.
About GXO Logistics
GXO Logistics, Inc. (NYSE: GXO) is the world’s largest pure-play contract logistics provider and is positioned to capitalize on the rapid growth of ecommerce, automation and outsourcing. GXO has over 150,000 team members across more than 1,000 facilities, totaling more than 200 million square feet. The company serves the world’s leading blue-chip companies to solve complex logistics challenges with technologically advanced supply chain and ecommerce solutions, at scale and with speed. GXO corporate headquarters is in Greenwich, Connecticut. Visit GXO.com for more information and connect with GXO on LinkedIn, X, Facebook, Instagram and YouTube.
Non-GAAP Financial Measures
As required by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the attached financial tables.
GXO’s non-GAAP financial measures in this press release include: adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), adjusted EBITDA margin, adjusted earnings before interest, taxes and amortization (“adjusted EBITA”), adjusted EBITA, net of income taxes paid, adjusted EBITA margin, adjusted net income attributable to GXO, adjusted earnings per share (basic and diluted) (“adjusted EPS”), free cash flow, free cash flow conversion, organic revenue, organic revenue growth, net leverage ratio, net debt, and operating return on invested capital (“ROIC”).
We believe that the above adjusted financial measures facilitate analysis of our ongoing business operations because they exclude items that may not be reflective of, or are unrelated to, GXO’s core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. Other companies may calculate these non-GAAP financial measures differently, and therefore our measures may not be comparable to similarly titled measures used by other companies. GXO’s non-GAAP financial measures should only be used as supplemental measures of our operating performance.
Adjusted EBITDA, adjusted EBITA, adjusted net income attributable to GXO and adjusted EPS include adjustments for transaction and integration costs, restructuring costs and unrealized gain/loss on FX contracts, a regulatory matter as well as net loss on divestiture of business, as set forth in the attached financial tables. Transaction and integration adjustments are generally incremental costs that result from an actual or planned acquisition and may include consulting fees, retention awards, internal salaries and wages (to the extent the individuals are assigned full-time to integration and transformation activities), and certain costs related to integrating and separating IT systems. Restructuring costs and other primarily consisted of severance paid to exiting members of the Company’s leadership team and to individuals as part of an initiative to optimize corporate expenses. The regulatory matter relates to a regulatory settlement. And net loss on divestiture of business primarily relates to the write-down loss resulting from the held-for-sale classification.
We believe that adjusted EBITDA, adjusted EBITDA margin, adjusted EBITA, adjusted EBITA, net of income taxes paid, and adjusted EBITA margin, improve comparability from period to period by removing the impact of our capital structure (interest expense), asset base (depreciation and amortization), tax impacts and other adjustments as set forth in the attached financial tables, which management has determined are not reflective of core operating activities and thereby assist investors with assessing trends in our underlying businesses.
We believe that organic revenue and organic revenue growth are important measures because they exclude the impact of foreign currency exchange rate fluctuations.
We believe that adjusted net income attributable to GXO and adjusted EPS improve the comparability of our operating results from period to period by removing the impact of certain costs and gains as set forth
in the attached financial tables, which management has determined are not reflective of our core operating activities, including amortization of intangible assets acquired.
We believe that free cash flow and free cash flow conversion are important measures of our ability to repay maturing debt or fund other uses of capital that we believe will enhance stockholder value. We calculate free cash flow as cash flows from operations less capital expenditures plus proceeds from sale of property and equipment. We calculate free cash flow conversion as free cash flow divided by adjusted EBITDA, expressed as a percentage.
We believe that net debt and net leverage ratio are important measures of our overall liquidity position and are calculated by removing cash and cash equivalents (excluding restricted cash) from our total debt and net debt as a ratio of our trailing twelve months adjusted EBITDA. We calculate ROIC as our trailing twelve months adjusted EBITA, net of income taxes paid, divided by the average invested capital. We believe ROIC provides investors with an important perspective on how effectively GXO deploys capital and use this metric internally as a high-level target to assess overall performance throughout the business cycle.
Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating GXO’s ongoing performance.
With respect to our financial targets for full-year 2026 organic revenue growth, adjusted EBITDA, adjusted diluted EPS, and free cash flow conversion, a reconciliation of these non-GAAP measures to the corresponding GAAP measures is not available without unreasonable effort due to the variability and complexity of the reconciling items described above that we exclude from these non-GAAP target measures. The variability of these items may have a significant impact on our future GAAP financial results and, as a result, we are unable to prepare the forward-looking statements of income and cash flows in accordance with GAAP, that would be required to produce such a reconciliation.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, including our full-year 2026 financial guidance of organic revenue growth, adjusted EBITDA, adjusted diluted EPS and free cash flow conversion. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by the company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors the company believes are appropriate in the circumstances.
These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include, but are not limited to, the risks discussed in our filings with the SEC and the following: economic conditions generally; supply chain challenges, including labor shortages; competition and pricing pressures; our ability to align our investments in capital assets, including equipment, service centers and warehouses, to our respective customers’ demands; our ability to successfully integrate and realize anticipated benefits, synergies, cost savings and profit improvement opportunities with respect to acquired companies, including the acquisition of Wincanton; acquisitions may be unsuccessful or result in other risks or developments that adversely affect our financial condition and results; our ability to develop and implement suitable information technology systems and prevent failures in or breaches of such systems; our indebtedness; our ability to raise debt and equity capital; litigation; labor matters, including our ability to manage our subcontractors, and risks associated with labor disputes at our customers’ facilities and efforts by labor organizations to organize our employees; risks associated with defined benefit plans for our current and former employees; our ability to attract or retain necessary talent; the increased costs associated with labor; fluctuations in currency exchange rates; fluctuations in fixed and floating interest rates; fluctuations in customer confidence and spending; issues related to our intellectual property rights; governmental regulation, including environmental laws, trade compliance laws, as well as changes in international trade policies and tax regimes; governmental or political actions, including the United Kingdom’s exit from the European Union; natural disasters, terrorist attacks or similar incidents; damage to our reputation; a material disruption of our operations; the inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of competitiveness and operations anticipated or targeted; failure in properly handling the inventory of our customers; failure to successfully incorporate artificial intelligence and humanoids in
connection with our growth strategy; the impact of potential cyber-attacks and information technology or data security breaches; and the inability to implement technology initiatives or business systems successfully; our ability to achieve Environmental, Social and Governance goals; and a determination by the IRS that the distribution or certain related spin-off transactions should be treated as taxable transactions. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. Such forward-looking statements should therefore be construed in the light of such factors.
All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except to the extent required by law.
GXO Logistics, Inc.
Condensed Consolidated Statements of Operations
(Unaudited) Three Months Ended June 30, Six Months Ended June 30,(Dollars in millions, shares in thousands, except per share amounts) 2026 2025 2026 2025 Revenue $3,441 $3,299 $6,739 $6,276 Direct operating expense 2,933 2,813 5,741 5,371 Selling, general and administrative expense 295 272 591 533 Depreciation and amortization expense 117 110 232 219 Transaction and integration costs 12 14 28 36 Restructuring costs and other 5 2 8 19 Regulatory matter — (1) — 65 Net loss on divestiture of business 2 — 23 — Operating income 77 89 116 33 Other income (expense), net 6 (10) 16 (15)Interest expense, net (35) (36) (67) (68)Income (loss) before income taxes 48 43 65 (50)Income tax expense (21) (15) (33) (17)Net income (loss) 27 28 32 (67)Net income attributable to noncontrolling interests (“NCI”) (2) (2) (3) (3)Net income (loss) attributable to GXO $25 $26 $29 $(70) Earnings (loss) per share Basic $0.22 $0.23 $0.25 $(0.60)Diluted $0.22 $0.23 $0.25 $(0.60) Weighted-average shares outstanding used in computation of earnings (loss) per share Basic 115,013 114,812 114,862 116,890 Diluted 115,718 115,055 115,780 116,890 GXO Logistics, Inc.
Condensed Consolidated Balance Sheets
(Unaudited) June 30, December 31,(Dollars in millions, shares in thousands, except per share amounts) 2026 2025 ASSETS Current assets Cash and cash equivalents $769 $854 Accounts receivable, net of allowance of $14 and $15 2,070 2,028 Other current assets 414 406 Total current assets 3,253 3,288 Long-term assets Property and equipment, net of accumulated depreciation of $2,208 and $2,126 1,261 1,151 Operating lease assets 2,698 2,563 Goodwill 3,727 3,781 Intangible assets, net of accumulated amortization of $805 and $781 839 909 Other long-term assets 593 570 Total long-term assets 9,118 8,974 Total assets $12,371 $12,262 LIABILITIES AND EQUITY Current liabilities Accounts payable $707 $758 Accrued expenses 1,445 1,492 Current debt 751 446 Current operating lease liabilities 779 745 Other current liabilities 439 434 Total current liabilities 4,121 3,875 Long-term liabilities Long-term debt 2,452 2,619 Long-term operating lease liabilities 2,137 2,044 Other long-term liabilities 639 709 Total long-term liabilities 5,228 5,372 Commitments and Contingencies Stockholders’ Equity Common Stock, $0.01 par value per share; 300,000 shares authorized, 120,458 and 119,868 shares issued and 114,770 and 114,512 shares outstanding, respectively 1 1 Treasury stock, at cost; 5,688 and 5,356 shares, respectively (218) (202)Preferred Stock, $0.01 par value per share; 10,000 shares authorized, 0 issued and outstanding — — Additional Paid-In Capital (“APIC”) 2,680 2,667 Retained earnings 747 718 Accumulated Other Comprehensive Income (Loss) (“AOCIL”) (223) (201)Total stockholders’ equity before NCI 2,987 2,983 NCI 35 32 Total equity 3,022 3,015 Total liabilities and equity $12,371 $12,262 GXO Logistics, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited) Six Months Ended June 30,(In millions) 2026 2025 Cash flows from operating activities: Net income (loss) $32 $(67)Adjustments to reconcile net income (loss) to net cash provided by operating activities Depreciation and amortization expense 232 219 Stock-based compensation expense 23 23 Deferred tax benefit (1) (25)Other (8) 7 Changes in operating assets and liabilities Accounts receivable (63) 18 Other assets (36) 39 Accounts payable (44) (151)Accrued expenses and other liabilities (28) (31)Net cash provided by operating activities 107 32 Cash flows from investing activities: Capital expenditures (130) (125)Proceeds from sale of property and equipment 4 2 Net cash used in investing activities (126) (123)Cash flows from financing activities: Common stock repurchased and excise tax paid (18) (200)Net borrowings under revolving credit facilities — 8 Repayments of debt — (55)Repayments of finance lease obligations (25) (24)Proceeds from exercise of stock options 7 — Taxes paid related to net share settlement of equity awards (17) (7)Net obligations under factoring arrangements (10) (12)Net changes in bank overdraft positions 1 64 Other — (1)Net cash used in financing activities (62) (227)Effect of exchange rates on cash and cash equivalents (3) 40 Net decrease in cash, restricted cash and cash equivalents (84) (278)Cash, restricted cash and cash equivalents, beginning of period 857 485 Cash, restricted cash and cash equivalents, end of period $773 $207 Non-cash financing activities: Excise tax liability related to stock repurchases $— $2 Reconciliation of cash, restricted cash and cash equivalents June 30, 2026 December 31, 2025Cash and cash equivalents $769 $854 Restricted Cash (included in Other current assets) 3 2 Restricted Cash (included in Other long-term assets) 1 1 Total cash, restricted cash and cash equivalents $773 $857 GXO Logistics, Inc.
Key Data
Disaggregation of Revenue
(Unaudited)
Revenue disaggregated by geographical area was as follows: Three Months Ended June 30,
Six Months Ended June 30,
(In millions) 2026 2025 2026 2025 United Kingdom $1,684 $1,590 $3,279 $2,981 United States 782 767 1,533 1,519 Netherlands 256 253 526 485 France 213 216 421 402 Spain 181 166 343 309 Italy 112 105 221 200 Other 213 202 416 380 Total $3,441 $3,299 $6,739 $6,276 The Company’s revenue can also be disaggregated by various verticals, reflecting the customers’ principal industry. Revenue disaggregated by industry was as follows: Three Months Ended June 30,
Six Months Ended June 30,
(In millions) 2026 2025 2026 2025 Omnichannel retail $1,637 $1,626 $3,198 $3,048 Technology and consumer electronics 439 402 872 795 Industrial and manufacturing 408 403 802 765 Consumer packaged goods 331 290 665 574 Food and beverage 341 359 658 673 Other 285 219 544 421 Total $3,441 $3,299 $6,739 $6,276 GXO Logistics, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
and Adjusted EBITDA Margins
(Unaudited) Three Months Ended June 30, Six Months Ended June 30, Year Ended
December 31, 2025
Trailing Twelve
Months Ended
June 30, 2026
(In millions) 2026 2025 2026 2025 Net income (loss) attributable to GXO $25 $26 $29 $(70) $32 $131 Net income attributable to NCI 2 2 3 3 4 4 Net income (loss) $27 $28 $32 $(67) $36 $135 Interest expense, net 35 36 67 68 133 132 Income tax expense 21 15 33 17 68 84 Depreciation and amortization expense 117 110 232 219 457 470 Transaction and integration costs 12 14 28 36 54 46 Restructuring costs and other 5 2 8 19 27 16 Regulatory matter — (1) — 65 65 — Net loss on divestiture of business 2 — 23 — 34 57 Unrealized (gain) loss on foreign currency contracts — 8 (4) 18 7 (15)Adjusted EBITDA(1) $219 $212 $419 $375 $881 $925 Revenue $3,441 $3,299 $6,739 $6,276 Operating income $77 $89 $116 $33 Operating income margin(2) 2.2% 2.7% 1.7% 0.5% Adjusted EBITDA margin(1)(3) 6.4% 6.4% 6.2% 6.0% (1) See the “Non-GAAP Financial Measures” section of this press release.
(2) Operating income margin is calculated as operating income divided by revenue for the period.
(3) Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue for the period. GXO Logistics, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITA
and Adjusted EBITA Margins
(Unaudited) Three Months Ended June 30, Six Months Ended June 30, Year Ended
December 31, 2025
Trailing Twelve
Months Ended
June 30, 2026
(In millions) 2026 2025 2026 2025 Net income (loss) attributable to GXO $25 $26 $29 $(70) $32 $131 Net income attributable to NCI 2 2 3 3 4 4 Net income (loss) $27 $28 $32 $(67) $36 $135 Interest expense, net 35 36 67 68 133 132 Income tax expense 21 15 33 17 68 84 Amortization of intangible assets acquired 28 30 57 59 119 117 Transaction and integration costs 12 14 28 36 54 46 Restructuring costs and other 5 2 8 19 27 16 Regulatory matter — (1) — 65 65 — Net loss on divestiture of business 2 — 23 — 34 57 Unrealized (gain) loss on foreign currency contracts — 8 (4) 18 7 (15)Adjusted EBITA(1) $130 $132 $244 $215 $543 $572 Revenue $3,441 $3,299 $6,739 $6,276 Adjusted EBITA margin(1)(2) 3.8% 4.0% 3.6% 3.4% (1) See the “Non-GAAP Financial Measures” section of this press release.
(2) Adjusted EBITA margin is calculated as adjusted EBITA divided by revenue for the period. GXO Logistics, Inc.
Reconciliation of Net Income (Loss) to Adjusted Net Income
and Adjusted Earnings Per Share
(Unaudited)(Dollars in millions, shares in thousands, except per share amounts)
Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income (loss) $27 $28 $32 $(67)Net income attributable to NCI (2) (2) (3) (3)Net income (loss) attributable to GXO $25 $26 $29 $(70)Amortization of intangible assets acquired 28 30 57 59 Transaction and integration costs 12 14 28 36 Restructuring costs and other 5 2 8 19 Regulatory matter — (1) — 65 Net loss on divestiture of business 2 — 23 — Unrealized (gain) loss on foreign currency contracts — 8 (4) 18 Income tax associated with the adjustments above(1) (4) (13) (15) (27)Adjusted net income attributable to GXO(2) $68 $66 $126 $100 Adjusted basic EPS(2) $0.59 $0.57 $1.10 $0.86 Adjusted diluted EPS(2) $0.59 $0.57 $1.09 $0.85 Weighted-average shares outstanding used in computation of adjusted earnings per share Basic 115,013 114,812 114,862 116,890 Diluted(3) 115,718 115,055 115,780 117,160 (1) The income tax rate applied to items is based on the GAAP annual effective tax rate.
(2) See the “Non-GAAP Financial Measures” section of this press release.
(3) The six months ended June 30, 2025, calculation of earnings per share - diluted (GAAP) excludes 270 thousand shares due to their anti-dilutive effect. GXO Logistics, Inc.
Other Reconciliations
(Unaudited)Reconciliation of Cash Flows from Operations to Free Cash Flow: Three Months Ended June 30, Six Months Ended June 30,(In millions) 2026 2025 2026 2025 Cash flows from operations(1) $76 $3 $107 $32 Capital expenditures (65) (47) (130) (125)Proceeds from sale of property and equipment 1 1 4 2 Free cash flow(2) $12 $(43) $(19) $(91)(1) Net cash provided by operating activities.
(2) See the “Non-GAAP Financial Measures” section of this press release. Reconciliation of Revenue to Organic Revenue: Three Months Ended June 30,
Six Months Ended June 30,
(In millions) 2026 2025 2026 2025 Revenue $3,441 $3,299 $6,739 $6,276 Foreign exchange rates (29) — (227) — Organic revenue(1) $3,412 $3,299 $6,512 $6,276 Revenue growth(2) 4.3% 7.4% Organic revenue growth(1)(3) 3.4% 3.8% (1) See the “Non-GAAP Financial Measures” section of this press release.
(2) Revenue growth is calculated as the change in the period-over-period revenue divided by the prior period, expressed as a percentage.
(3) Organic revenue growth is calculated as the change in the period-over-period organic revenue divided by the prior period, expressed as a percentage. GXO Logistics, Inc.
Liquidity Reconciliations
(Unaudited)Reconciliation of Total Debt and Net Debt:(In millions) June 30, 2026Current debt $751 Long-term debt 2,452 Total debt(1) $3,203 Plus: Bank overdrafts (included in Other current liabilities) 1 Less: Cash and cash equivalents (excluding restricted cash) (769)Net debt(2) $2,435 (1) Includes finance leases and other debt of $479 million as of June 30, 2026.
(2) See the “Non-GAAP Financial Measures” section of this press release. Reconciliation of Total debt to Net income Ratio:(In millions) June 30, 2026 Total debt $3,203 Trailing twelve months net income $135 Debt to net income ratio 23.7x Reconciliation of Net Leverage Ratio:(In millions) June 30, 2026 Net debt(1) $2,435 Trailing twelve months adjusted EBITDA(1) $925 Net leverage ratio(1) 2.6x(1) See the “Non-GAAP Financial Measures” section of this press release. GXO Logistics, Inc.
Return on Invested Capital
(Unaudited)Adjusted EBITA, net of income taxes paid: Six Months Ended June 30, Year Ended
December 31, 2025
Trailing Twelve
Months Ended
June 30, 2026
(In millions) 2026 2025 Adjusted EBITA(1) $244 $215 $543 $572 Less: Cash paid for income taxes (30) (10) (59) (79)Adjusted EBITA(1), net of income taxes paid $214 $205 $484 $493 (1) See the “Non-GAAP Financial Measures” section of this press release.
Return on Invested Capital (ROIC):
June 30, (In millions) 2026 2025 AverageSelected Assets: Accounts receivable, net $2,070 $1,950 $2,010 Other current assets 414 434 424 Property and equipment, net 1,261 1,264 1,263 Selected Liabilities: Accounts payable $(707) $(691) $(699)Accrued expenses (1,445) (1,381) (1,413)Other current liabilities(1) (438) (452) (445)Invested capital $1,155 $1,124 $1,140 Trailing twelve months net income to average invested capital 11.8%Operating return on invested capital(2)(3) 43.2%(1) As of June 30, 2026 and June 30, 2025, excludes $1 million and $64 million of bank overdraft, respectively.
(2) See the “Non-GAAP Financial Measures” section of this press release.
(3) The ratio of operating return on invested capital is calculated as trailing twelve months adjusted EBITA, net of income taxes paid, divided by the average invested capital.
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1 For definitions of non-GAAP measures see the “Non-GAAP Financial Measures” section in this press release.
2 Our guidance reflects current FX rates.
