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ZUSDURI® generated $50.4 million in revenue in the second quarter of 2026, representing 73% quarter-over-quarter growthOnce issued, new U.S. patent is expected to provide protection into July 2044 for ZUSDURI and UGN-103Continued advancement of pipeline, with UGN-103 on track for NDA submission in the third quarter of 2026 and UGN-501 expected to begin a Phase 1 trial in the fourth quarter of 2026Conference call and webcast held today at 10:00 AM ET PRINCETON, N.J., Aug. 05, 2026 (GLOBE NEWSWIRE) -- UroGen Pharma Ltd. (Nasdaq: URGN), a biotech company dedicated to developing and commercializing innovative solutions that treat urothelial and specialty cancers, today announced financial results for the second quarter ended June 30, 2026, and provided an overview of recent developments.

“The second quarter marked another important step in establishing ZUSDURI as a foundational therapy for adult patients with recurrent low-grade intermediate-risk non-muscle invasive bladder cancer,” said Liz Barrett, President and Chief Executive Officer of UroGen. “The continued increase in utilization, expanding adoption across community practices, and growing repeat use reinforce our confidence we are building a durable commercial franchise with blockbuster potential. During the quarter, we strengthened the long-term sustainability of the franchise through a new U.S. patent allowance that, once the patent is issued, is expected to provide intellectual property coverage for both ZUSDURI and UGN-103 into July 2044. We believe this meaningfully enhances the long-term commercial opportunity for both products and further reinforces the sustainability of the franchise. Combined with the life-cycle expansion of UGN-103 and initiation of clinical development for UGN-501, we believe we are exceptionally well positioned to build a durable growth company and create long-term shareholder value.”

Q2 2026 and Recent Business Highlights:

ZUSDURI (mitomycin) for intravesical solution:

ZUSDURI achieved net product revenue of $50.4 million in the second quarter of 2026, representing 73% growth over the first quarter of 2026. As of June 30, 2026, UroGen reported: 1,444 activated sites of care452 unique ZUSDURI prescribers204 repeat ZUSDURI prescribers, representing approximately 45% of total prescribers, up from 40% in the first quarter of 2026 Updated results from the Phase 3 ENVISION trial of ZUSDURI showed a 36-month duration of response (DOR) of 64.5% (95% CI: 54.6, 72.8) by Kaplan-Meier estimate among patients who achieved a complete response (CR) at three months (79.6%). At a median follow-up of 35.5 months, the median DOR had not been reached. ZUSDURI’s durability was achieved without maintenance therapy, supporting a treatment approach that can provide lasting disease control while reducing treatment burden for patients.UroGen received a Notice of Allowance from the U.S. Patent and Trademark Office for a new U.S. patent covering methods of treating patients with recurrent, low-grade intermediate-risk non-muscle invasive bladder cancer (LG-IR-NMIBC) without transurethral resection of bladder tumor (TURBT). Once issued, the patent is expected to provide protection into July 2044, further strengthening the intellectual property supporting ZUSDURI and UGN-103 and reinforcing the long-term commercial opportunity for both products. American Urological Association (AUA) Key Opinion Leader Webinar:

On May 17, 2026, UroGen hosted a Key Opinion Leader webinar at the AUA Annual Meeting in Washington, D.C., focused on real-world experience with ZUSDURI. The discussion highlighted patient selection, workflow integration, treatment patterns, and physician experience across both hospital and community practices, reinforcing growing confidence in the use of ZUSDURI in routine clinical practice. A replay of the event is accessible through the Investors section of the Company’s website. JELMYTO (mitomycin) for pyelocalyceal solution in LG-UTUC:

Generated net product revenue of $22.0 million in the quarter ended June 30, 2026, compared with $24.2 million reported for the second quarter of 2025. The Company continues to add new users and remains on track to deliver within its JELMYTO full-year 2026 guidance range of $97 million to $101 million.UroGen entered into a settlement and license agreement with Teva Pharmaceuticals, Inc. and Teva Pharmaceuticals, USA, Inc. (collectively, “Teva”) that resolves the patent litigation UroGen initiated in response to Teva’s submission of an Abbreviated New Drug Application to the U.S. FDA for a generic version of JELMYTO prior to the expiration of the relevant UroGen patents. Under the terms of the agreement, UroGen granted Teva a non-exclusive license to sell its generic version of JELMYTO beginning on September 15, 2030, if approved by the FDA, unless certain limited circumstances customarily included in these types of agreements occur. Next-generation novel mitomycin-based formulations for urothelial cancer:

UGN-103 achieved a 94.5% (95% CI: 86.1, 97.9) DOR at six months by Kaplan-Meier estimate, in the ongoing Phase 3 UTOPIA trial in patients with LG-IR-NMIBC. The six-month results from UTOPIA are generally consistent with the 91.9% (95% CI: 86.9, 95.0) six-month DOR by Kaplan-Meier estimate observed with ZUSDURI in the pivotal ENVISION trial.UroGen remains on track to submit a New Drug Application (NDA) for UGN-103 in the third quarter of 2026, with potential FDA approval in 2027 and full launch anticipated following receipt of a unique J-Code. UGN-103 is designed to build on the clinical and commercial foundation of ZUSDURI. The benefits of UGN-103 include a more streamlined manufacturing process and simplified reconstitution, while preserving the innovative and proven RTGel® technology that enables sustained drug exposure at tumor sites in the bladder.The Company expects to initiate a randomized controlled Phase 3 trial evaluating UGN-103 in high-risk NMIBC in the second half of 2026, and a trial evaluating UGN-103 as adjuvant therapy in newly diagnosed intermediate-risk NMIBC patients in 2027.The Phase 3 clinical trial evaluating UGN-104 in low-grade upper tract urothelial cancer (LG-UTUC) remains on track to complete enrollment by the end of 2026. UGN-501 (investigational next-generation oncolytic virus) for use in high-grade non-muscle invasive bladder cancer:

UroGen’s Investigational New Drug application for UGN-501 has been accepted by the FDA, and the Company plans to initiate its Phase 1 clinical trial in NMIBC in the fourth quarter of 2026. Second Quarter 2026 Financial Results

Revenue: Total revenue was $72.5 million in the second quarter of 2026, compared with $24.2 million in the second quarter of 2025. The increase was driven by the continued commercial launch of ZUSDURI.

Research and Development (R&D) Expenses: R&D expenses were $17.3 million in the second quarter of 2026, including non-cash share-based compensation expense of $0.9 million. This compares to $18.9 million, including non-cash share-based compensation expense of $0.4 million, in the same period in 2025. The decrease in R&D expenses was primarily attributable to ZUSDURI manufacturing costs, which were recognized as an R&D expense in the second quarter of 2025 prior to receiving FDA approval.

Selling, General and Administrative (SG&A) Expenses: SG&A expenses were $48.4 million in the second quarter of 2026, including non-cash share-based compensation expense of $4.4 million. This compares to $43.2 million, including non-cash share-based compensation expense of $2.3 million, in the same period in 2025. The increase in SG&A expenses was primarily attributable to ZUSDURI commercial activities, including the sales force expansion following ZUSDURI approval and higher brand marketing expenses, and an increase in overall commercial operation costs.

Financing on Prepaid Forward Obligation: UroGen reported non-cash financing expense related to the prepaid forward obligation to RTW Investments of $4.5 million in the second quarter of 2026, compared with $4.6 million in the same period in 2025.

Interest Expense on Long-term Debt: Interest expense related to long-term debt was $4.9 million in the second quarter of 2026, compared with $4.1 million in the same period in 2025. The increase in interest expense was primarily attributable to the additional borrowings of $75.0 million in the first quarter of 2026 in connection with the Pharmakon refinancing of long-term debt, offset by the lower interest rate.

Net Loss: UroGen reported a net loss of $14.4 million, or $0.28 per basic and diluted share, in the quarter ended June 30, 2026, compared with a net loss of $49.9 million, or ($1.05) per basic and diluted share, in the second quarter of 2025.

Cash, Cash Equivalents and Marketable Securities: As of June 30, 2026, cash, cash equivalents and marketable securities totaled $108.0 million.

2026 JELMYTO Revenue and Updated Company Operating Expense Guidance: The Company continues to expect 2026 net product revenue for JELMYTO to be in the range of $97 million to $101 million. This implies a year-over-year growth rate of approximately 3% to 7% over the $94 million of JELMYTO revenue reported in 2025. The Company is not providing full-year 2026 revenue guidance for ZUSDURI at this time, as the product remains in the early stages of its commercial launch. The Company is increasing its full-year 2026 operating expenses guidance to be in the range of $260 million to $270 million, including non-cash share-based compensation expense of $20 million to $24 million. The increase reflects the decision to accelerate investment behind the business in response to the continued strength of the ZUSDURI launch. Specifically, the Company plans to increase investment in ZUSDURI peer-to-peer promotional education and patient awareness initiatives to support long-term commercial adoption, and also accelerate start-up activities for the UGN-103 high-grade NMIBC trial and development activities of UGN-501 with RTGel®.

Conference Call & Webcast Information: Members of UroGen’s management team will host a live conference call and webcast today at 10:00 AM Eastern Time to review UroGen’s financial results and provide a general business update.

The live webcast can be accessed by visiting the Investors section of the Company’s website at investors.UroGen.com. Please connect at least 15 minutes prior to the live webcast to ensure adequate time for any software download that may be needed to access the webcast.

UROGEN PHARMA LTD.SELECTED CONSOLIDATED BALANCE SHEETS(U.S. dollars in thousands)(Unaudited)            June 30, 2026 December 31, 2025Cash and cash equivalents and marketable securities $107,976  $120,456 Total assets $252,590  $200,455 Total liabilities $384,986  $305,929 Total shareholders' deficit $(132,396) $    (105,474)          UROGEN PHARMA LTD.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(U.S. dollars in thousands, except share and per share data)(Unaudited)          Three months ended June 30, Six months ended June 30,   2026   2025   2026   2025           Revenue$72,456  $24,215  $123,415  $44,469  Cost of revenue                        6,572                          3,550                          10,711                          5,880  Gross profit                      65,884                        20,665                        112,704                        38,589  Operating expenses:        Research and development expenses                      17,336                        18,914   32,933   38,785  Selling, general and administrative expenses 48,437   43,199   99,923   78,166  Total operating expenses                      65,773                        62,113                        132,856                        116,951  Operating income (loss)                   111   (41,448)  (20,152)  (78,362) Financing on prepaid forward obligation (4,545)  (4,644)  (9,051)  (9,227) Interest expense on long-term debt (4,887)  (4,132)  (9,072)  (8,200) Interest and other income, net                            599                              1,299                          1,207   3,413  Loss before income taxes$(8,722) $(48,925) $(37,068) $(92,376) Income tax expense (5,629)                                (1,015)                             (857)  (1,407) Net loss$(14,351) $(49,940) $(37,925) $(93,783) Net loss per ordinary share basic and diluted$(0.28) $(1.05) $(0.75) $(1.97) Weighted average shares outstanding, basic and diluted 50,380,112               47,739,816               50,282,221               47,582,610                    About ZUSDURI

ZUSDURI (mitomycin) for intravesical solution is an innovative drug formulation of mitomycin, approved for the treatment of adults with recurrent LG-IR-NMIBC. Utilizing UroGen’s proprietary RTGel® technology, a sustained release, hydrogel-based formulation, ZUSDURI is delivered directly into the bladder in an out-patient procedure by a trained healthcare professional using a urinary catheter to enable the treatment of tumors by non-surgical means.

APPROVED USE FOR ZUSDURI

ZUSDURI (mitomycin) for intravesical solution is a prescription medicine used to treat adults with a type of cancer of the lining of the bladder called low-grade intermediate risk non-muscle invasive bladder cancer (LG-IR-NMIBC) after previously receiving bladder surgery to remove a tumor that did not work or is no longer working.

IMPORTANT SAFETY INFORMATION

You should not receive ZUSDURI if you have a hole or tear (perforation) of your bladder or if you have had an allergic reaction to mitomycin or to any of the ingredients in ZUSDURI.

Before receiving ZUSDURI, tell your healthcare provider about all of your medical conditions, including if you:

have kidney problems.are pregnant or plan to become pregnant. ZUSDURI can harm your unborn baby. You should not become pregnant during treatment with ZUSDURI. Tell your healthcare provider right away if you become pregnant or think you may be pregnant during treatment with ZUSDURI.Females who are able to become pregnant: You should use effective birth control (contraception) during treatment with ZUSDURI and for 6 months after the last dose.

Males being treated with ZUSDURI: You should use effective birth control (contraception) during treatment with ZUSDURI and for 3 months after the last dose.

are breastfeeding or plan to breastfeed. It is not known if ZUSDURI passes into your breast milk. Do not breastfeed during treatment with ZUSDURI and for 1 week after the last dose. How will I receive ZUSDURI?

You will receive your ZUSDURI dose from your healthcare provider 1 time a week for 6 weeks into your bladder through a tube called a urinary catheter. It is important that you receive all 6 doses of ZUSDURI according to your healthcare provider’s instructions.If you miss any appointments, call your healthcare provider as soon as possible to reschedule your appointment.During treatment with ZUSDURI, your healthcare provider may tell you to take additional medicines or change how you take your current medicines. After receiving ZUSDURI:

ZUSDURI may cause your urine color to change to a violet to blue color. Avoid contact between your skin and urine for at least 24 hours.To urinate, males and females should sit on a toilet and flush the toilet several times after you use it. After going to the bathroom, wash your hands, your inner thighs, and genital area well with soap and water.Clothing that comes in contact with urine should be washed right away and washed separately from other clothing. The most common side effects of ZUSDURI include: increased blood creatinine levels, increased blood potassium levels, trouble with urination, decreased red blood cell counts, increase in certain blood liver tests, increased or decreased white blood cell counts, urinary tract infection, and blood in your urine.

You are encouraged to report negative side effects of prescription drugs to the FDA.

Visit www.fda.gov/medwatch or call 1-800-FDA-1088. You may also report side effects to UroGen Pharma at 1-855-987-6436.

Please see ZUSDURI Full Prescribing Information, including the Patient Information, for additional information.

About JELMYTO

JELMYTO® (mitomycin) for pyelocalyceal solution is a mitomycin-containing reverse thermal gel containing 4 mg mitomycin per mL gel approved for the treatment of adult patients with LG-UTUC. JELMYTO is a viscous liquid when cooled and becomes a semi-solid gel at body temperature. The drug slowly dissolves over four to six hours after instillation and is removed from the urinary tract by normal urine flow and voiding. It is approved for administration in a retrograde manner via ureteral catheter or antegrade through a nephrostomy tube. The delivery system allows the initial liquid to coat and conform to the upper urinary tract anatomy. The eventual semisolid gel allows for chemo-ablative therapy to remain in the collecting system for four to six hours without immediately being diluted or washed away by urine flow.

APPROVED USE FOR JELMYTO

JELMYTO® is a prescription medicine used to treat adults with a type of cancer of the lining of the upper urinary tract including the kidney called low-grade Upper Tract Urothelial Cancer (LG-UTUC).

IMPORTANT SAFETY INFORMATION

You should not receive JELMYTO if you have a hole or tear (perforation) of your bladder or upper urinary tract.

Before receiving JELMYTO, tell your healthcare provider about all your medical conditions, including if you:

are pregnant or plan to become pregnant. JELMYTO can harm your unborn baby. You should not become pregnant during treatment with JELMYTO. Tell your healthcare provider right away if you become pregnant or think you may be pregnant during treatment with JELMYTO. Females who are able to become pregnant: You should use effective birth control (contraception) during treatment with JELMYTO and for 6 months after the last dose. Males being treated with JELMYTO: If you have a female partner who is able to become pregnant, you should use effective birth control (contraception) during treatment with JELMYTO and for 3 months after the last dose.are breastfeeding or plan to breastfeed. It is not known if JELMYTO passes into your breast milk. Do not breastfeed during treatment with JELMYTO and for 1 week after the last dose.Tell your healthcare provider if you take water pills (diuretic).
How will I receive JELMYTO?Your healthcare provider will tell you to take a medicine called sodium bicarbonate before each JELMYTO treatment.You will receive your JELMYTO dose from your healthcare provider 1 time a week for 6 weeks. It is important that you receive all 6 doses of JELMYTO according to your healthcare provider’s instructions. If you miss any appointments, call your healthcare provider as soon as possible to reschedule your appointment. Your healthcare provider may recommend up to an additional 11 monthly doses.JELMYTO is given to your kidney through a tube called a catheter.During treatment with JELMYTO, your healthcare provider may tell you to take additional medicines or change how you take your current medicines.
After receiving JELMYTO:JELMYTO may cause your urine color to change to a violet to blue color. Avoid contact between your skin and urine for at least 6 hours.To urinate, males and females should sit on a toilet and flush the toilet several times after you use it. After going to the bathroom, wash your hands, your inner thighs, and genital area well with soap and water.Clothing that comes in contact with urine should be washed right away and washed separately from other clothing.JELMYTO may cause serious side effects, including:Swelling and narrowing of the tube that carries urine from the kidney to the bladder (ureteric obstruction). If you develop swelling and narrowing, and to protect your kidney from damage, your healthcare provider may recommend the placement of a small plastic tube (stent) in the ureter to help the kidney drain. Tell your healthcare provider right away if you develop side pain or fever during treatment with JELMYTO.Bone marrow problems. JELMYTO can affect your bone marrow and can cause a decrease in your white blood cell, red blood cell, and platelet counts. Your healthcare provider will do blood tests prior to each treatment to check your blood cell counts during treatment with JELMYTO. Your healthcare provider may need to temporarily or permanently stop JELMYTO if you develop bone marrow problems during treatment with JELMYTO.The most common side effects of JELMYTO include: urinary tract infection, blood in your urine, side pain, nausea, trouble with urination, kidney problems, vomiting, tiredness, stomach (abdomen) pain. You are encouraged to report negative side effects of prescription drugs to the FDA. Visit www.fda.gov/medwatch or call 1-800-FDA-1088. You may also report side effects to UroGen Pharma at 1-855-987-6436.

Please see JELMYTO Full Prescribing Information, including the Patient Information, for additional information.

About UroGen Pharma Ltd.

UroGen is a biotech company dedicated to developing and commercializing innovative solutions that treat urothelial and specialty cancers because patients deserve better options. UroGen has developed RTGel® reverse-thermal hydrogel, a proprietary sustained-release, hydrogel-based platform technology that has the potential to improve the therapeutic profiles of existing drugs. UroGen’s sustained release technology is designed to enable longer exposure of the urinary tract tissue to medications, making local therapy a potentially more effective treatment option. UroGen’s first product to treat LG-UTUC and second product (mitomycin) for intravesical solution for patients with recurrent LG-IR-NMIBC are designed to ablate tumors by non-surgical means. UroGen is headquartered in Princeton, NJ with operations in Israel. Visit www.urogen.com to learn more or follow us on X, @UroGenPharma.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding: the potential benefits and expected length of patent protection for ZUSDURI and UGN-103; UroGen’s planned and ongoing clinical trials and non-clinical studies and the timing for regulatory submissions and potential regulatory approvals for its product candidates, including UGN-103, UGN-104, and UGN-501; the belief in the significant commercial opportunity ahead and UroGen’s ability to fully capitalize on it; 2026 JELMYTO revenue and company operating expense guidance; the potential of UroGen’s proprietary RTGel technology to improve therapeutic profiles of existing drugs other than mitomycin; and UroGen’s sustained release technology making local delivery potentially more effective as compared to other treatment options. Words such as “anticipate,” “believe,” “can,” “continue,” “estimate,” “expect,” “may,” “on track,” “plan,” “potential,” “will,” or other words that convey uncertainty of future events or outcomes are used to identify these forward-looking statements. These statements are subject to a number of risks, uncertainties and assumptions, including, but not limited to: clinical results may not be indicative of results that may be observed in the future, including in larger populations; potential safety and other complications related to UroGen’s products; risks related to UroGen’s and its licensors’ ability to protect their respective patents and other intellectual property, including that UroGen’s or its licensors’ pending patent applications may not be successful, and in such event, the duration of intellectual property protection would be more limited; the ability to maintain regulatory approval; complications associated with commercialization activities; labeling limitations; competition in UroGen’s industry; the scope, progress and expansion of developing and commercializing UroGen’s products and product candidates; the size and growth of the market(s) therefor and the rate and degree of market acceptance thereof vis-à-vis alternative therapies or procedures, such as surgery; UroGen’s ability to attract or retain key management, members of the board of directors and other personnel; UroGen’s RTGel technology and ZUSDURI may not perform as expected; new data relating to ZUSDURI, including from spontaneous adverse event reports and from the ongoing ENVISION trial, may result in changes to the product label and may adversely affect sales, or result in withdrawal of ZUSDURI from the market; the potential for payors to delay, limit or deny coverage for ZUSDURI; the data from the UTOPIA trial may not be sufficient to support approval of UGN-103; UroGen may not successfully develop and receive regulatory approval of any other product that incorporates RTGel technology; and the impacts of general macroeconomic and geopolitical conditions on UroGen’s business and financial position. In light of these risks and uncertainties, and other risks and uncertainties that are described in the Risk Factors section of UroGen’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 6, 2026, as well as in the Risk Factors section of UroGen’s Quarterly Report on Form 10-Q being filed with the SEC later today, the events and circumstances discussed in such forward-looking statements may not occur, and UroGen’s actual results could differ materially and adversely from those anticipated or implied thereby. Any forward-looking statements speak only as of the date of this press release and are based on information available to UroGen as of the date of this release.

INVESTOR CONTACT:
Vincent Perrone
Senior Director, Investor Relations
[email protected]
609-460-3588 ext. 1093

MEDIA CONTACT:
Cindy Romano
Director, Corporate Communications
[email protected]
609-460-3566 ext. 1083

Source: UroGen Pharma Ltd.

Meta Platforms (META -0.39%) CEO Mark Zuckerberg made some bold claims on the company's second-quarter earnings conference call, but they weren't enough to appease investors after the company reported lackluster earnings results.

The company's earnings came up short of Wall Street consensus estimates, and its revenue guidance for the current quarter also fell short of consensus. Free cash flow also tanked in the quarter to just $784 million, down from over $8.5 billion one year ago. This represented a 91% drop.

Image source: Getty Images.

Like other hyperscalers, Meta has seen free cash flow plummet due to massive investments in artificial intelligence (AI) infrastructure. The company is guiding for capital expenditures (capex) between $130 billion and $145 billion this year.

Despite the bad news, Zuckerberg also told analysts during the earnings call, "We're also progressing in our efforts to bring personal superintelligence to everyone, with exciting model releases, and we expect to build on that momentum over the course of this year with new products."

Do investors buy this vision?

Wall Street clearly isn't convinced yet Following the earnings report, Meta's stock plummeted. While it's possible investors overreacted, it's also clear they are not buying Zuckerberg's claims about superintelligence, a form of intelligence that can match or surpass human cognitive abilities.

AI can do some pretty incredible things, but it isn't yet clear that companies will achieve superintelligence. More so, it's unclear what ramifications actually achieving such technology might have for society.

Institutional investors typically won't credit companies with grandiose plans until it is clear they are reflected in a company's financials. Right now, investors see the financials trending in the wrong direction and are concerned that all of the capex will not yield adequate returns.

Today's Change

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587.94

For Meta in particular, I also think investors are likely skeptical of Zuckerberg's all-in spending plans, given what happened to the company's Reality Labs division.

Zuckerberg changed the name of the company from Facebook to Meta in 2021, on another big bet on virtual reality, wearable hardware, and the metaverse. But since late 2020, Reality Labs has racked up over $80 billion in operating losses.

Now obviously, companies like Meta can afford to make big bets and should to some extent. It's quite possible that not investing in AI could get them penalized by investors as well.

However, when you invest hundreds of billions, there is simply no margin for error. Companies that don't show results will see their stocks punished, and Zuckerberg's talk of superintelligence won't change anything in the stock's price until it materializes.

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Alphabet CEO Sundar Pichai. Bloomberg/Getty Images Google wants its AI to get better at coding. It might have found a shortcut.

The tech giant has been in discussions with San Francisco startup Mechanize in recent weeks for a potential deal that would involve Google hiring some of Mechanize's talent, four people familiar with the conversations said.

The deal, which some of the people said is worth over $1.5 billion, is in progress, and details could change. Google is discussing a non-exclusive licensing agreement for Mechanize's technology as part of the deal, one person familiar with the matter said. The talent Google could acquire from Mechanize would work on model evaluation and development, the person added.

The talks highlight two realities of the AI boom. Coding has become one of the most important — and lucrative — applications of AI, and Big Tech companies are getting creative about how they acquire the talent and technology they need to stay competitive.

It wouldn't be the first time Google has done a workaround deal for talent and technology. In the past couple of years, Google has structured acquisitions as hybrid transactions that include bringing in talent via acquihires and gathering technology through licensing and other methods. Companies sometimes take this approach to avoid the antitrust scrutiny of full acquisitions.

Last year, Google swept in to acquire Windsurf's talent and licensed its tech after OpenAI tried to buy it. Windsurf's CEO, Varun Mohan, now leads Google's Antigravity, an agentic coding platform. In 2024, the search giant rehired Character AI cofounder Noam Shazeer and paid for non-exclusive rights to use the startup's AI technology (Shazeer recently left the company to join OpenAI).

Google declined to comment over email. Mechanize declined to comment.

Mechanize launched last year with a mission of automating every job and a star-studded group of investors, including former GitHub CEO Nat Friedman, Stripe CEO Patrick Collison, and podcaster Dwarkesh Patel.

The startup said earlier this year that it raised $9.1 million in a funding round at a $500 million valuation. Mechanize's CEO, Tamay Besiroglu, previously cofounded Epoch AI, which also focused on testing AI models.

Mechanize's tech can help tech companies improve the performance of their AI models at coding — something Google has struggled with, while OpenAI and Anthropic have scooped up developer customers with Codex and Claude Code.

Mechanize has wider ambitions than coding. "Our current focus is software engineering, but our long-term goal is the full automation of valuable work across the economy," its website reads.

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Ben Bergman You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

I'm a senior correspondent at Business Insider, where I cover the tech industry with a focus on venture capital and startups.I can frequently be seen on CNN and other channels providing analysis on a range of business and economic topics. I also appear often at dozens of the biggest events around the world, including the World Economic Forum, HumanX, and Web Summit.Please get in touch if you have a story to tell. For tips (not pitches), you can message me securely on Signal @BenBergman.11Here are some examples of stories I've written:

VCs are flooding Anthropic with offers to invest at up to an $800 billion valuationI was in the room for Trump's Davos speech. The crowd was eerily silent — until he mentioned Greenland.The FBI is investigating a startup founder accused of using VC money to pay for her house and a Caribbean weddingAnthropic, seeing voracious demand for shares, is clamping down on a certain kind of investmentAdam Neumann created a secretive billion-dollar startup to turn apartment living into a utopian fantasy. I was the first reporter to set foot inside.'Where ambition goes to die': These tech workers flocked to Austin during the pandemic. Now they're desperate to get out.Mira Murati doubled the fundraising target for her new AI startup to $2 billion. It could be the largest seed round in history.Half of Sequoia Capital's VC funds since 2018 have posted losses for the University of California's endowmentHow Whitney Wolfe Herd's fateful deal with a Russian mogul deprived early Bumble employees of a stock windfall when she became a billionaireMailchimp employees are furious after the company's founders promised to never sell, withheld equity, and then sold it for $12 billion'My job is not to be the best friend of the CEO': Upfront's Mark Suster prides himself on being hard on founders, but some say his tough-love approach has gone too farHere is a little more about me: Previously, I was a senior reporter at LAist/Southern California Public Radio, where I covered business and economics. I have also written for The New York Times and Columbia Journalism Review and was a reporting intern at The Times. I started my career as a producer for NPR's Morning Edition and also produced award-winning documentaries for public television.I spent the 2017-2018 academic year at Columbia Business School as a Knight-Bagehot fellow. After that, I oversaw the development of The Journal, a daily podcast produced by The Wall Street Journal and Gimlet Media.Originally from Seattle, I graduated cum laude from Occidental College in Los Angeles with a degree in politics.In my free time, I love skiing, tennis, and poker. I competed in the 2024 World Series of Poker Main Event but sadly did not win. 

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Charles Rollet is BI's tech correspondent in San Francisco. Prior to joining BI, Charles worked at TechCrunch covering startups and VC. Charles is based in the Bay Area, where he enjoys hiking with his dogs. You can contact Charles securely on Signal at charlesrollet.12 or +1-628-282-2811.

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After a mixed Q2 2026 earnings report, Meta Platforms (META -0.39%) declined 10% on July 30, its worst day of the year. That capped off an 11-day losing streak after what had been a strong start to the month.

Since co-founder and CEO Mark Zuckerberg owns about 13% of Meta, his net worth moves with the company's stock. This recent downturn took almost $18 billion off his net worth.

Meta and Zuckerberg are betting big on artificial intelligence (AI). Let's see why investors are worried and if this bet is likely to pay off.

Image source: The Motley Fool.

Costs are rising, and free cash flow is plummeting Meta's top line looked good in its Q2 2026 earnings. It made $60.8 billion in sales, up 28% year over year. The rest of the report was dicier.

Diluted earnings per share (EPS) came in at $6.18, well below the expected $7.22. Costs and expenses were up 55% year over year to $42 billion. Free cash flow (FCF) collapsed to just $784 million, a far cry from the $8.5 billion in FCF it reported a year ago.

AI spending is pushing up Meta's costs significantly, and it now projects capital expenditures of $130 billion to $145 billion in 2026. That was a slight adjustment on the lower end of the range, which was previously $125 billion. Meta hasn't provided any 2027 capex guidance yet, so it has done little to alleviate fears that spending will spike even higher next year.

Will Meta's AI spending be worth it? Meta certainly isn't the only company making massive AI investments. Alphabet, Amazon, and Microsoft are all expected to spend even more this year, so in part, this is just what it takes to compete with other hyperscalers. (GOOG +0.77%) (GOOGL +1.11%) (AMZN -2.32%) (MSFT +1.06%)

The problem is that these other three tech companies have thriving cloud businesses that help justify the cost of their AI investments. Although there has been speculation that Meta could sell compute as well, it currently doesn't, and its revenue streams are more limited.

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Recent comments by Zuckerberg haven't helped to defuse those concerns. He told analysts that measuring the ROI on the build-out was "a very technical question," inviting skepticism about whether Meta has an effective payback model.

It's not all bad news. Ad impressions were up 14% year over year, and the average price per ad was up 12% year over year. Meta has attributed recent improvements in its ad performance to its AI ad tools, so it appears ROI is showing up in the existing business to some degree.

Meta still has an excellent balance sheet and is seeing revenue growth. Its AI investments are understandable, given the importance of building competitive AI models and the value of computing capacity. The current dip could be worth a look for investors comfortable with this social media company's volatility. If you decide to invest in Meta, keep an eye on its spending, FCF, and ad growth in upcoming earnings reports to measure how its AI investments are playing out.

Lyle Daly has positions in Alphabet and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.

August 05, 2026 09:00 ET  | Source: Bit Origin Ltd

International Data Corporation projects worldwide AI infrastructure spending to reach approximately US$497 billion in 2026, representing growth of approximately 53% as compared to 20251Worldwide AI infrastructure spending projected to exceed US$1 trillion by 2029, representing an average compound annual growth rate (“CAGR”) of approximately 31% for the years 2025-20292Bit Origin’s initial 16-server deployment remains on schedule for the third quarter of 2026 and remains supported by contracted customer demand and established hosting arrangements SINGAPORE, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Bit Origin Ltd (NASDAQ: BTOG) (the “Company”), a company focused on AI computing infrastructure, digital asset innovation, and blockchain-based strategies, today highlighted industry growth projections supporting their continued investment in accelerated computing infrastructure and provided additional context regarding the commercialization framework for its previously announced NVIDIA Blackwell B300 AI server transaction.

Rapidly Expanding AI Infrastructure Market

According to International Data Corporation (“IDC”), worldwide AI infrastructure spending is projected to reach approximately US$497 billion in 2026, representing growth of approximately 53% as compared to 2025.

IDC further projects that worldwide AI infrastructure spending will exceed US$1 trillion by 2029, representing an average CAGR of approximately 31% for the years 2025 through 2029. Within this market, accelerated servers, which are primarily GPU-based systems, are projected to grow at an average CAGR of approximately 42% and account for more than 95% of server AI infrastructure spending by the end of 2029.3

NVIDIA reported that its revenue growth during the first quarter of fiscal 2027 was driven by demand for data center products supporting accelerated computing and AI solutions. For the fiscal quarter ended April 26, 2026, NVIDIA reported record Data Center revenue of US$75.2 billion, representing an increase of approximately 21% from the immediately preceding fiscal quarter ended January 31, 2026.4 NVIDIA’s financial results are presented solely as an indicator of broader industry demand and are not indicative of the Company’s expected performance or financial condition.

The Company believes these developments may reflect growing infrastructure requirements associated with AI training, inference, reasoning, and other advanced computing workloads, although there can be no assurance that the Company will benefit from such developments.

Malaysia’s Expanding Digital Infrastructure Market

Malaysia, where the Company’s initial NVIDIA Blackwell B300 infrastructure is expected to be deployed, is emerging as an important regional destination for data center and cloud computing investment.

According to the Malaysian Investment Development Authority (“MIDA”), Malaysia approved approximately RM144.4 billion, or approximately US$35.3 billion, of data center and cloud computing investments between 2021 and mid-2025. 5

MIDA has also cited projections that Malaysia’s data center market could grow from approximately US$4.04 billion in 2024 to approximately US$13.57 billion by 2030, representing an estimated compound annual growth rate of approximately 22.38%.6

The Company believes Malaysia’s expanding digital infrastructure ecosystem provides a relevant operating environment for its planned deployment. Market-level investment and growth projections, however, do not necessarily indicate demand for the Company’s services or guarantee the successful deployment or commercial performance of its equipment.

Initial NVIDIA Blackwell B300 Deployment

As previously announced, the Company acquired sixteen NVIDIA Blackwell B300 AI servers, together with the benefit of previously executed customer deployment and data center hosting arrangements.

The servers have not yet been delivered or deployed and are currently expected to be delivered during the third quarter of 2026 for deployment at a data center facility in Malaysia.

In connection with the transaction, the Company entered into a five-year management agreement under which an experienced third-party manager is responsible for coordinating the deployment, management, and commercialization of the servers. These responsibilities include coordinating data center hosting, power, network connectivity, equipment maintenance, and commercial utilization.

This operating structure is intended to allow the Company to participate in AI computing infrastructure while relying on specialized third-party capabilities for day-to-day deployment and operation. The Company intends to evaluate the performance of this initial deployment before pursuing additional expansion opportunities.

“Global investment in accelerated computing infrastructure continues to grow as AI workloads become more complex and increasingly compute-intensive,” said Jinghai Jiang, Chairman and Chief Executive Officer of the Company.

“Our immediate focus is on the successful delivery, deployment, and commercialization of our initial NVIDIA Blackwell B300 servers in Malaysia. We believe disciplined execution of this transaction can establish an operating model that may support selective future expansion.”

The Company expects to provide additional updates as material delivery, deployment, and commercialization achievements are met.

About Bit Origin Ltd

Bit Origin Ltd (NASDAQ: BTOG) is a company focused on AI computing infrastructure, digital asset innovation and blockchain-based strategies. The Company is evaluating and pursuing opportunities involving GPU computing, server leasing, storage infrastructure and related digital infrastructure services.

For more information, please visit www.bitorigin.io.

Forward-Looking Statements

This press release contains forward-looking statements regarding, among other matters, the expected delivery, deployment and commercialization of the Company’s NVIDIA Blackwell B300 AI servers; anticipated timing of server delivery during the third quarter of 2026; the performance of customer, hosting, supplier and management arrangements; market demand for AI computing infrastructure; the development of Malaysia’s data center market; the performance of the Company’s third-party management arrangement; the Company’s ability to evaluate or pursue future expansion opportunities; and the Company’s broader strategic plans relating to AI computing infrastructure, digital asset innovation and blockchain-based strategies. Forward-looking statements can generally be identified by the use of words such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “intend,” “forecast,” “target,” “potential,” “continue” or the negative of such terms or other similar expressions, although not all forward-looking statements contain such identifying words.

These forward-looking statements are based on the Company’s current expectations, estimates, projections, beliefs and assumptions and are not guarantees of future performance. These statements involve known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Risks and uncertainties that could cause actual results to differ materially include, but are not limited to: the Company’s limited operating history in AI computing infrastructure; the Company’s reliance on a single third-party manager for deployment, management and commercialization of its servers; supplier performance, including the risk that NVIDIA or other suppliers may fail to deliver servers on the anticipated timeline or at all; delivery, installation or deployment delays at the data center facility in Malaysia; data center readiness, including the availability and reliability of power supply, cooling, network connectivity and physical infrastructure; equipment performance, including the risk that the servers may not operate at expected capacity or efficiency; customer demand and the risk that current customer arrangements may not be sustained, renewed or replaced on favorable terms; customer and counterparty credit risk and performance risk; risks related to operating in Malaysia, including regulatory, political, currency and legal risks; power and network availability and associated costs; operating costs that may exceed current estimates; the Company’s need for additional financing and the availability thereof on acceptable terms; general market conditions, including competitive dynamics in the AI infrastructure market; rapid technological developments that could render the Company’s equipment obsolete or less competitive; cybersecurity risks; potential environmental and regulatory compliance costs; and other risks described in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 20-F and subsequent filings.

Industry data and projections cited in this press release, including data attributed to International Data Corporation and the Malaysian Investment Development Authority, were prepared by third parties and have not been independently verified by the Company. Such data and projections. Such data and projections are subject to inherent to uncertainty, are based on assumptions that may prove incorrect, and do not necessarily reflect current or future demand for the Company’s services or indicate that the Company will achieve similar growth or operating results. The Company makes no representation or warranty as to the accuracy or completeness of such third-party data.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, except as required by applicable law, including the securities laws of the United States. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.

Company Contact

Bit Origin Ltd
Mr. Jinghai Jiang
Chairman and Chief Executive Officer
Email: [email protected]

1International Data Corporation, AI Infrastructure Spending Holds Near $90 Billion in Q1 2026 as ARM Overtakes x86 in Accelerated Servers; 2026 Forecast Raised to $497 Billion (July 21, 2026)
2 Id.
3 Id.
4 Nvidia Corporations Quarterly Report on Form 10-Q for the fiscal quarter ended April 26, 2026 – https://www.sec.gov/ix?doc=/Archives/edgar/data/1045810/000104581026000052/nvda-20260426.htm
5 MIDA Insights: Building Resilience Through Localisation: Malaysia’s Next Chapter – https://www.mida.gov.my/building-resilience-through-localisation-malaysias-next-chapter/
6 Malaysian Investment Development Authority, “MIDA Powers Up Malaysia’s Digital Future at Data Centre Nexus” (May 8, 2025) – https://www.mida.gov.my/media-release/mida-powers-up-malaysias-digital-future-at-data-centre-nexus/

Disney’s Josh D’Amaro stepped out with solid numbers and some news in his first full quarter as CEO. Toy Story 5 drove studio revenue, theme parks saw an uptick in attendance, and streaming profits more than doubled for the three months ended in June.

Total operating income for Disney’s fiscal third quarter jumped 21% $5.6 billion, beating Wall Street forecasts, as did adjusted EPS (of $2.06 a share, up from $1.61).

Revenue of $25.2 billion rose 7% from the year earlier. 

The fiscal Q3 numbers follow confirmation of Disney’s planned sale of its 50% interest in A+E Global Media to an affiliate of co-owner Hearst for $1.2 billion in cash. The media giant is moving its consumer products business under Studios from the lucrative division’s longtime home in Experiences. And it unveiled a global, short form content sharing partnership with TikTok this morning.

The quarterly numbers and full-year outlook “reinforce our confidence that we are uniquely well positioned,” said D’Amaro, who took the reins from Bob Iger in March. “Decades of IP investment have built deep fan connections that translate into strong financial results. Our accelerating global guests growth at Experiences, Toy Story 5‘s theatrical and consumer products success, and strong ESPN viewership gains all helped expand our consumer reach this quarter.”

He’ll be hosting a call with analysts at 8:30 am ET.

Disney’s three sprawling divisions are led by Entertainment, which posted profit of $1.7 billion, up 64%, on revenue of $11.3 billion. The company cited the June 19 theatrical release of Toy Story 5, which has surpassed $1 billion in global box office, as well as The Devil Wears Prada 2.

Disney acknowledged that Star Wars: The Mandalorian and Grogu and live action Moana (in fiscal 4Q) underperformed at the box office but noted their other contributions to the flywheel like a new Mandalorian-themed Millennium Falcon: Smuggler’s Run at Disneyland and Walt Disney World, and retail sales.

“We expect the live-action Moana to be a strong title on Disney+, building on the success of the original film … and extending the reach of the franchise, which now includes three films, a themed area at EPCOT, and a robust global merchandise business.”

Disney doesn’t furnish streaming subscriber numbers anymore but said SVOD operating income more than doubled to $712 million from $329 million on revenue of $5.5 billion, up 11%. Subscriptions fees rose 15% (9% from more subscribers, 3% from higher rates and 1% from a favorable foreign exchange impact). Advertising nosed up 3% (impressions were higher, rates lower).

Disney also sounded a bit like Netflix as it talked up an emerging international programming slate with Rivals Season 2 on Disney+ in the U.K. and Ireland, The Perfect Crown in Korea and Dear Killer Nannies in Latin America. The company plans to triple the number of Disney+ local original series over the next three years.

“Our ambition is for Disney+ to become the digital centerpiece of the Walt Disney Company,” D’Amaro’s letter said.

“We aim to evolve Disney+ into a comprehensive membership ecosystem. By integrating high-value, always-on benefits with our storytelling, we can reach more fans, deepen engagement, and increase subscriber retention. These product enhancements will also allow us to further segment the market, increasing our addressable opportunity over time. We expect to begin introducing elements of this vision in Spring 2027.”

Disney+ Q3 churn declined worldwide and Disney said it passed an important milestone in “app unification” allowing Hulu standalone and bundle subscribers to link profiles, watch history, and manage subscriptions on Disney+.

At Experiences, profit rose 20% to over $3 billion on almost $10 billion in revenue. Global guests grew 4% and attendance at domestic parks rose 3%. WDW saw healthy core attendance increases from domestic tourists and annual passholders.Forward bookings remain robust.

That should reassure investors who were spooked by softer attendance at Universal’s domestic parks when Comcast reported earnings last month.   

Theme parks average per capita ticket revenue rose 5%. Disney noted continued, but moderating, headwinds from international attendance at domestic parks. It cited strong attendance growth at Disneyland Paris following the opening of World of Frozen. Overall, it anticipates a quarter of global guest growth in the current fiscal Q4 despite consumer softness in Asia.

Q3 was the first full quarter with Disney’s two newest cruise ships, the Disney Destiny and Disney Adventure.

Disney said it recorded approximately $100 million in a tariff refund for the quarter, reversing out tariff payments earlier in the fiscal year. Apple last week reported a $2.19 billion tariff refund for the June quarter.

Sports, led by juggernaut ESPN, saw profit of $853 million, down 17% on higher programming and production costs, on $4.5 billion in revenue. Disney cited contractual rate increases, costs for new sports rights and an impact from the timing of rights costs recognition as a result of the NBA contract renewal. Contributing to the lower-than-expected operating income were four-game sweeps in early rounds of the NBA playoffs and the impact of a network carriage dispute. Disney was likely referring here to the resolution terms of a fight with YouTube TV in late 2025.

After unlocking a selection of ESPN content on Disney+ domestically in 2024 and expanding it globally since then, the letter said, the company plans to deliver a more robust subset of games for Disney+ subscribers beginning this fall anchored by additional college football simulcasts. The service will also continue simulcasting college football pregame show College GameDay.

ISFIYA, Israel and LAS VEGAS, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Check-Cap Ltd. (“Check-Cap” or the “Company”) (NASDAQ: MBAI) today updated the expected closing timeline for its proposed business combination with MBody AI Corp. (“MBody AI”), projecting completion in the third quarter of 2026. This updates the Company’s previously announced expectation of a closing in the second half of 2026. The Company publicly filed its registration statement on Form F-1 with the U.S. Securities and Exchange Commission (the “SEC”) on July 24, 2026, and has responded to all comments received from the SEC staff. Closing remains subject to final approval by Nasdaq and the satisfaction of the remaining customary closing conditions, none of which can be assured.

Transaction Progress to Date

The following steps have been completed and are reflected in the Company’s public filings:

Shareholder approval: the merger has been approved by the shareholders of both Check-Cap and MBody AI.Annual report: Check-Cap filed its Annual Report on Form 20-F for the year ended December 31, 2025 on April 27, 2026.MBody AI financial statements: MBody AI’s audited financial statements for the year ended December 31, 2025 were furnished on Form 6-K on May 12, 2026, and updated financial statements were furnished on Form 6-K/A on June 24, 2026.Registration statement: the Company’s registration statement on Form F-1 was publicly filed with the SEC on July 24, 2026 and is available at www.sec.gov.SEC staff comments: the Company has responded to all comments received from the SEC staff on its Annual Report on Form 20-F and on the Form F-1.Nasdaq listing application: Check-Cap submitted its initial listing application on February 24, 2026. As previously reported on April 30, 2026, Nasdaq completed its initial review of the application and the Company responded to all questions in the Supplemental Information Request Form.Closing conditions: the parties have satisfied substantially all of the closing conditions within their respective control. Steps Remaining

Completion of the merger and the commencement of trading remain subject to the effectiveness of the Form F-1, final approval of the Company’s initial listing application by Nasdaq including satisfaction of all initial listing requirements, and the satisfaction of the remaining customary closing conditions. None of these matters can be assured.

Based on the status of these matters, the Company now expects the merger to close in the next eight weeks, before the end of the third quarter of 2026. Upon completion, the combined company is expected to continue trading on Nasdaq under the ticker symbol “MBAI.”

“Shareholders have asked about the status of this transaction, and the answer is in the public filings: the Form F-1 has been submitted and is available for review. We have responded to every comment we have received, and our listing application has been through Nasdaq’s initial review,” said David Lontini, Chairman and Interim Chief Executive Officer of Check-Cap Ltd. “We now expect to close in the next eight weeks, subject to the approvals that remain outstanding.”

“Throughout this process, we’ve stayed focused on building the business. We have continued signing customers, deploying robots and preparing MBody AI to operate as a public company from day one,” said John Fowler, Chief Executive Officer of MBody AI. “When this transaction closes, shareholders will own an operating business with commercial operations already underway.”

Additional investor information is available at ir.mbody.ai

About Check-Cap Ltd.

Check-Cap Ltd. (NASDAQ: MBAI) is a technology company executing a strategic transformation through its shareholder-approved merger with MBody AI Corp. Upon completion, Check-Cap expects to become a publicly traded provider of embodied artificial intelligence, delivering enterprise-grade AI orchestration for robotic systems across hospitality, gaming, and commercial real estate operations. The merger is targeted to close in the third quarter of 2026, subject to customary closing conditions.

About MBody AI Corp.

MBody AI Corp. is a hardware-agnostic enterprise robotics platform that deploys and manages autonomous robot workforces for hospitality, gaming, and commercial real estate operators. The company’s proprietary MBody AI Orchestrator™ manages diverse robot fleets across sites and use cases under long-term subscription agreements. MBody AI counts leading Fortune 500 operators among its customers. For more information, visit www.mbody.ai.

No Offer or Solicitation

This press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. A registration statement relating to securities of the Company has been filed with the SEC but has not yet become effective. The securities covered by that registration statement may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. Neither the SEC nor any state securities commission has approved or disapproved of such securities or passed upon the accuracy or adequacy of the registration statement.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements made in graphics, images, headlines, and other visual elements of this release, including any references or imagery suggesting a future Nasdaq listing. All statements other than statements of historical fact are forward-looking statements, which include, among others, statements regarding the completion and timing of the merger with MBody AI, including the Company’s expectation that the merger will close in the third quarter of 2026; the expected timing of effectiveness of the Company’s registration statement on Form F-1; the completion, timing, and outcome of the SEC staff’s review processes; the status and outcome of the Company’s Nasdaq initial listing application; the anticipated Nasdaq listing and commencement of trading; the determination, ratio, timing, and implementation of any reverse share split and the Company’s ability to satisfy Nasdaq’s minimum bid price requirement; the Company’s ability to maintain continued compliance with Nasdaq listing requirements; the expected benefits of the merger; and the future operations and positioning of the combined company. These forward-looking statements are based on the Company’s current intentions, beliefs, and expectations regarding future events. Actual results may differ materially due to risks and uncertainties including, but not limited to, the satisfaction of closing conditions; the ability to complete the merger on the anticipated timeline or at all; the risk that the Form F-1 does not become effective on the anticipated timeline or at all; the risk that the SEC staff issues additional comments or requires additional amendments; the ability to receive Nasdaq approval, satisfy all initial listing requirements, and commence trading, none of which is assured; the risk that a reverse share split is not implemented, or is implemented at a ratio or on a timeline that does not achieve the intended result; market conditions; and other factors described in the Company’s filings with the U.S. Securities and Exchange Commission. There can be no assurance that the merger will close in the third quarter of 2026 or at all, that the Form F-1 will become effective on the anticipated timeline or at all, or that the Company will receive Nasdaq approval or that trading will commence. The Company undertakes no obligation to update forward-looking statements except as required by law.

Quick Facts

IssuerCheck-Cap Ltd. (NASDAQ: MBAI)Operating
businessMBody AI Corp.AnnouncementCheck-Cap now expects its merger with MBody AI to close in the third quarter of 2026, updating prior guidance of the second half of 2026Form F-1
Filing DateJuly 24, 2026
Annual Report on Form 20F
Filing DateApril 27, 2026Nasdaq initial listing
application submittedFebruary 24, 2026Shareholder
approvalObtained from shareholders of both companies
Merger statusTargeted to close in the third quarter of 2026, subject to final Nasdaq approval and remaining customary closing conditions, none of which is assured
Investor Relations Contact

Lytham Partners, LLC
602-889-9700
[email protected]

Media Contact

Core IR
[email protected]

The Phillips 66 refinery in Immingham, Britain, April 10, 2025. REUTERS/Dominic Lipinski Purchase Licensing Rights, opens new tab

CompaniesAug 5 (Reuters) - Phillips 66 (PSX.N), opens new tab reported a nearly fourfold ​jump in second-quarter profit on Wednesday, crushing Wall Street estimates, ‌as the Middle East conflict squeezed global fuel supplies and sent U.S. refining margins soaring.

U.S. refiners have been among the biggest beneficiaries of the Iran war, as international buyers ​have scrambled to secure alternative fuel supplies amid concerns over ​disruptions to Middle Eastern exports.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

The surge in overseas demand has ⁠helped push U.S. fuel exports to record highs, particularly for diesel and ​other refined products.

Phillips' refining segment reported an unprecedented jump in adjusted earnings ​to $3.09 billion from $392 million a year earlier.

Its realized margin in the second quarter more than doubled to $24.08 per barrel from a year earlier.

The company's net income came in ​at $3.85 billion, up from $877 million a year ago and marking its ​strongest quarterly profit since 2022, when Russia's invasion of Ukraine disrupted global supply chains ‌and boosted ⁠refinery earnings.

Shares of Phillips 66 rose 1.3% to $208.50 in premarket trading. Last week, the company's board approved a $10 billion increase to its share repurchase ​program.

Quarterly adjusted earnings ​at Phillips 66's ⁠renewable fuel segment rose to $544 million, compared with a loss of $133 million a year earlier.

U.S. refiners are beginning ​to see stronger returns from renewable fuels after years of ​margin pressure, ⁠helped by a recent increase in biofuel blending mandates and a rise in diesel prices linked to the Middle East conflict.

Houston, Texas-based Phillips 66 reported ⁠an ​adjusted profit of $9.41 per share for the ​three months ended June 30, compared with analysts' average estimate of $7.44 per share, according to data ​compiled by LSEG.

Reporting by Pooja Menon in Bengaluru; Editing by Shinjini Ganguli

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Heinz ketchup for sale at a supermarket in Queens, New York City, U.S., September 3, 2025. REUTERS/Kylie Cooper/File Photo Purchase Licensing Rights, opens new tab

Aug 5 (Reuters) - Kraft Heinz (KHC.O), opens new tab raised its annual forecasts after beating quarterly sales estimates on Wednesday, as CEO Steve Cahillane's turnaround efforts gained traction and price hikes ​helped counter lower volumes in North America and other markets.

The better-than-expected results give ‌credence to Cahillane's turnaround strategy, which has driven an uptick in marketing and innovation spends as the company leans aggressively into protein-heavy foods and electrolyte-infused drinks to attract health-conscious consumers.

Get a daily digest of breaking business news straight to your inbox with the Reuters Business newsletter. Sign up here.

The packaged goods company said ​it would increase its incremental investments by $100 million to about $700 million in 2026, ​a cash injection Cahillane had hinted at during an interview with Reuters in ⁠June. Cahillane became Kraft Heinz's CEO in January.

The company now expects annual organic ​sales to fall between 0.5% and 2.0%, compared with its prior view of a 1.5% ​to 3.5% decline.

It also expects annual adjusted earnings per share of $2.03 to $2.09, compared with its prior forecast of $1.98 to $2.10.

While Kraft Heinz benefited from price-led growth, its volumes remained under pressure in key markets including ​North America. "Growth in Canada and Away From Home was offset by declines in U.S. ​Retail, which were primarily driven by meats," CFO Andre Maciel said in prepared remarks.

Shares of the company remained ‌largely ⁠unchanged in volatile premarket trading. A non-cash $7.4 billion impairment charge contributed to an operating loss during the quarter, though one smaller than the company reported a year earlier.

Kraft Heinz has been navigating a challenging environment as energy and raw material costs surge amid ongoing geopolitical ​conflicts.

Maciel said the company ​was well hedged on ⁠energy and edible oils for most of 2026, but was hedged on certain resins and metals only through the middle of ​the third quarter.

"As those roll off, we expect greater exposure to ​spot prices ⁠in the fourth quarter," he said.

Kraft Heinz's quarterly sales fell 1.4% to $6.26 billion from a year earlier, compared with analysts' expectations of a 3.6% decline to $6.12 billion, according to data compiled ⁠by ​LSEG.

On an adjusted basis, the company reported a profit ​of 56 cents per share, down 18.8% from a year ago but beating analysts' estimates of 53 cents per share.

Reporting ​by Anuja Bharat Mistry in Bengaluru and Alexander Marrow in London; Editing by Jonathan Ananda

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Ken Griffin's Citadel posted strong gains across its major hedge funds in July, helped by a recovery in risk assets and a discounted purchase of assets from the collapse of Leopold Aschenbrenner's Situational Awareness to end the month, according to a person familiar with the firm's performance.

Citadel's flagship multistrategy Wellington fund, the firm's largest, returned 5.9% in July, marking its best monthly performance since 2022 and pushing 2026 gains to 12%, the person said. The tactical trading fund, which combines discretionary equity investing with quantitative strategies, gained 11.1% in July and is up 27% on the year. The equities fund advanced 14.2% last month, bringing 2026 return to 27%. Tactical fund and equities fund both had its best month ever. The person asked not to be identified discussing confidential performance figures.

The July gains came after Citadel acquired the bulk of the public-stock portfolio formerly held by Situational Awareness late last month, following the hedge fund's rapid unraveling after steep losses triggered margin calls and forced asset sales. Citadel purchased many of the holdings at a significant discount, positioning the firm to benefit as markets rebounded into the month-end.

Situational Awareness, founded by former OpenAI researcher Leopold Aschenbrenner, was forced to unwind many of its positions after a sharp reversal in artificial intelligence trades left it bleeding on both sides of its book. The firm had accumulated sizable stakes in AI infrastructure companies while betting against software stocks, a strategy that backfired as software shares rallied and AI hardware names slumped.

Several of the fund's prime brokers worked to reduce positions in an orderly fashion as Situational Awareness sought to meet margin requirements. Citadel emerged as one of the largest buyers of the portfolio, taking advantage of one of the year's biggest forced liquidations.

Stocks such as Nebius and Micron that Aschenbrenner's fund owned rebounded in the final days of July following a brutal month with many traders saying the fund's near collapse and rescue move by Citadel was a clearing event that caused short sellers to take profits.

Citadel managed about $71 billion in assets as of July 1 and has often used periods of market dislocation to deploy capital into distressed or forced-selling situations.

Citadel declined to comment.

CVS Health Wednesday, Aug. 5, 2026 reported second quarter net income nearly tripled to $2.9 billion compared to the year-ago quarter as the company gets a better handle on rising costs in its Aetna health plans. In this photo is a monitor displays signage for CVS Health Corp. on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Oct. 27, 2017. Photographer: Michael Nagle/Bloomberg

© 2017 Bloomberg Finance LP

CVS Health Wednesday reported second quarter net income nearly tripled to $2.9 billion compared to the year-ago quarter as the company gets a better handle on rising costs in its Aetna health plans.

CVS, which owns the nation’s third-largest health insurance company in Aetna, said the company’s medical benefits ratio, which is the percentage of health plan premium spent on medical care, decreased to 87.4% compared to 89.9% in the year-ago period.

The financial performance convinced CVS executives to raise its diluted earnings per share guidance range to “$6.84 to $7.04 from $6.24 to $6.44” for the full year 2026, the company said. It’s the second consecutive quarter CVS has made such a move as chief executive officer David Joyner continues to turn the diversified healthcare giant around since he was promoted into the top job nearly two years ago.

“As our businesses work together to deliver a technology-powered care engagement experience, we continue to deliver strong performance,” Joyner said in a statement accompanying the quarterly earnings report. “We uniquely enable what our customers want the most: simple, connected and convenient access to affordable, quality healthcare, where, when, and how they want it.”

CVS said the drop in the medical benefits ratio, was “primarily driven by improved underlying performance in the government business and the absence of the premium deficiency reserve recorded in the prior year.”

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Like other health insurers, CVS’ Aetna unit has been battling the rising medical expenses of its health plan members, particular among older adults covered by the company’s Medicare Advantage plans. In the third quarter of 2024, just before Joyner took over as CEO, the company’s medical benefit ratio was more than 95% largely driven by costs of enrollees in Medicare Advantage plans. Such plans contract with the federal government to provide health benefits available in traditional Medicare plus extra benefits and services to seniors including drug coverage, wellness programs and other coverage.

The industry and its analysts would prefer medical benefit ratios to be below 90% and into the mid 80s, where the industry was more than two years ago. Thus, CVS appears to have arrived as the company’s medical membership as of June 30, 2026 sat at 26 million health plan members and “remained consistent compared with March 31, 2026,” the company said.

Despite CVS’ decision last year to exit the individual health insurance business under the Affordable Care Act, also known as Obamacare, the company still grew its health care benefits segment. Total revenues in the company’s health care benefits segment grew 3.5% to $37.5 billion “driven by an increase in the government business, partially offset by a decline as a result of the company’s exit of the individual exchange business in 2026.”

The improvement helped CVS net income jump to $2.98 billion, or $2.31 per share, compared to $1.02 billion, or 80 cents per share, in the year-ago quarter. Meanwhile, second quarter total revenue grew more than 7% total revenues to $106 billion “driven by revenue growth across all operating segments.”

CVS also owns the nation’s largest drugstore chain with about 9,000 pharmacies and nearly 1,000 retail clinics and one of the nation’s largest pharmacy benefit management companies.

In the company’s health services segment, which includes the Caremark pharmacy benefit management company, total revenues increased 11.5% to $51.8 billion in the second quarter compared to the year-ago period “primarily driven by pharmacy drug mix and brand inflation, partially offset by continued pharmacy client price improvements.”

And in the company’s pharmacy and consumer wellness segment,” CVS said total revenues “increased slightly” for the second quarter to $33.8 billion “primarily driven by pharmacy drug mix, increased prescription volume, including contributions from the company’s Rite Aid asset acquisitions which were completed during the third quarter of 2025, and brand inflation.”

“These increases were largely offset by regulatory-related price reductions on certain drugs, the impact of recent generic drug introductions and pharmacy reimbursement pressure,” CVS said in its earnings report.

Robinhood Markets (HOOD +3.51%) operates an investing platform where clients can buy and sell stocks, options, futures, cryptocurrency, and event contracts in the prediction markets. Its stock was trading at a 52-week low of $63 in March, a 57% decline from last year's record high of $154.

The sell-off was driven by weakness in Robinhood's options and crypto trading businesses, which combine to make up the bulk of its transaction-based revenue. While options activity recovered slightly during the second quarter of 2026, the crypto business remained subdued.

Robinhood stock has climbed more than 45% from its 52-week low, but here's why I'm predicting another sell-off during the next few months.

Image source: The Motley Fool.

Robinhood's clients engage in very risky behavior Robinhood generated $1.3 billion in revenue during the 2026 second quarter, an impressive 32% increase from the year-ago period. Transaction-based revenue accounted for $776 million of that total, while net interest income contributed $389 million.

Transaction-based revenue is the money Robinhood earns from its core business, which involves processing trades on behalf of its clients. Options trading was the largest contributor at $342 million, a 29% increase from the year-ago period. Crypto trading revenue, however, plummeted by 38% to just $100 million. That isn't a surprise, given that major coins including Bitcoin and Ethereum are down sharply from their all-time highs, which has kept many investors on the sidelines.

Robinhood also earned $156 million from processing trades in the prediction markets, which clients use to make bets on everything from politics to sports. Like options and crypto markets, prediction markets are extremely risky, and that brings me to a very important point.

Today's Change

(

3.51

%) $

3.17

Current Price

$

93.51

During the second quarter of 2021, which was near the height of the pandemic-related frenzy in the financial markets, Robinhood earned a whopping 88% of its transaction-based revenue from options and crypto trading alone. But just one year later, its options revenue was down 31%, while its crypto revenue had plummeted by 75%.

Most investors who engage in highly speculative trading in options, crypto, and prediction markets lose money in the long run, which is terrible for Robinhood's customer retention. In fact, in the company's latest quarterly filing with the Securities and Exchange Commission, it cites speculative "meme" trading as one of the key reasons its revenue fluctuates so erratically.

Transaction-based revenue from areas such as stock investing is more sustainable because buying a slice of a company isn't an all-or-nothing bet, which means clients are likely to stick around for much longer. However, this currently makes up just 17% of Robinhood's total transaction-based revenue.

Image source: Robinhood Markets.

Unfortunately, the composition of Robinhood's revenue leaves the company vulnerable to more volatility in its financial results. When the company's transaction-based revenue fell sharply after 2021, its stock suffered a decline of more than 90%, and there is a risk that history will repeat if it doesn't diversify away from risky areas such as options and event contracts.

Robinhood's lofty valuation opens the door to downside for shareholders When Robinhood stock set a new record high last October, its price-to-sales (P/S) ratio was more than 30, almost triple its long-term average of 11.9. That valuation wasn't sustainable, but even though the stock has since declined, its P/S ratio remains at an elevated level of 16.5.

HOOD PS Ratio data by YCharts

That implies Robinhood stock would have to decline by roughly 30% or more just to trade in line with its average P/S ratio of 11.9. However, it might have even more downside potential if there is a decline in the company's transaction revenue, which is a possibility if history is any guide. Lower revenue in the future would mean Robinhood stock might be even more expensive than it currently appears at face value.

A sharp decline in the stock market, rising interest rates, or a deterioration in the broader economy could reduce the disposable incomes of many retail investors who engage in highly speculative trading, thus resulting in lower transaction revenue for Robinhood. All three factors were prevalent last time the company's revenue plummeted in 2022.

Simply put, I think Robinhood's elevated valuation leaves very little room for further upside in its stock, especially considering its largest sources of revenue are on such shaky foundations.

NASHVILLE, Tenn.--(BUSINESS WIRE)--Louisiana-Pacific Corporation (LP) (NYSE: LPX), a leading manufacturer of high-performance building products, today reported its financial results for the three and six months ended June 30, 2026.

“We executed our strategy, and Siding delivered revenue within our guided range despite margin pressure from raw material inflation. We anticipate Siding returning to volume and revenue growth in the third quarter.” –LP CEO Jason Ringblom

Share Second Quarter 2026 Summary, Compared to Second Quarter 2025

LP reaffirms Siding full-year guidance, anticipates Siding year-over-year growth in the third quarter of 2026 Siding net sales decreased by $19 million, or 4%, to $441 million Oriented Strand Board (OSB) net sales decreased by $68 million to $182 million Net income was $26 million, a decrease of $27 million Net income per diluted share was $0.38 per diluted share, a decrease of $0.39 per diluted share Adjusted EBITDA(1) was $79 million, a decrease of $63 million Adjusted Diluted EPS(1) was $0.40 per diluted share, a decrease of $0.67 per diluted share Cash provided by operating activities was $140 million Capital Allocation Update

Invested $59 million in capital expenditures during the second quarter of 2026 Paid $21 million in cash dividends during the second quarter of 2026 As previously announced on July 31, 2026, LP's Board of Directors declared a quarterly cash dividend of $0.30 per share, payable on August 28, 2026, to stockholders of record on August 14, 2026. Total liquidity of approximately $1 billion as of June 30, 2026 “We executed our strategy, and Siding delivered revenue within our guided range despite margin pressure from raw material inflation,” said LP CEO Jason Ringblom. “We anticipate Siding returning to volume and revenue growth in the third quarter.”

Outlook

LP is providing financial guidance for the third quarter of 2026 and full year 2026 as set forth in the table below. Guidance is based on current plans and expectations and is subject to a number of known and unknown uncertainties and risks, including those set forth below under “Forward-Looking Statements.”

Third Quarter 2026

Full Year 2026

Siding Net Sales Year-Over-Year Growth

$460-470 million (~5% growth)

$1.65-1.67 billion (~1% decline)

Siding Adjusted EBITDA(2)

$110-120 million (~25% margin(2)(3))

$410-425 million (25-26% margin(2)(3))

OSB Adjusted EBITDA(2)(4)

$(45) million

$(120) million

Consolidated Adjusted EBITDA(2)(4)(5)

$50-60 million

$255-270 million

Capital Expenditures(6)

~$320 million

Second Quarter 2026 Highlights

Net sales for the second quarter of 2026 fell year over year by $90 million to $664 million. Siding revenue decreased by $19 million, or 4%, due to 11% lower volumes, partially offset by 7% higher prices. OSB revenue decreased by $68 million, driven by a decline in both prices and sales volumes.

Net income for the second quarter of 2026 decreased year over year by $27 million to $26 million ($0.38 per diluted share). The decline primarily reflects a $63 million decrease in Adjusted EBITDA, partially offset by the absence of $17 million of impairment charges incurred in 2025, a benefit of $12 million related to the reduction in tax provision, and a $8 million decrease in foreign currency loss. The year-over-year decrease in Adjusted EBITDA primarily reflects a $35 million impact from lower OSB prices, a $24 million impact from lower Siding volumes, an $11 million impact from lower OSB volumes, a $12 million impact from inflationary costs, and a $5 million impact from lower selling prices in South America. These decreases were partially offset by a $27 million benefit from higher Siding selling prices.

First Six Months of 2026 Highlights

Net sales for the first six months of 2026 decreased year over year by $240 million to $1.2 billion. Siding revenue decreased by $61 million, or 7%, due to 14% lower volumes, partially offset by 8% higher prices. OSB revenue decreased by $167 million, driven by lower prices and sales volumes.

Net income for the first six months of 2026 decreased year over year by $91 million to $53 million ($0.76 per diluted share). The decrease primarily reflects a $143 million decrease in Adjusted EBITDA, which was partially offset by the absence of $17 million of impairment charges incurred in 2025, a benefit of $28 million related to the reduction in tax provision, and an $16 million decrease in foreign currency loss. The year-over-year decline in Adjusted EBITDA was driven by a $101 million impact from lower OSB prices, along with additional headwinds of $59 million from lower Siding volumes, $21 million from lower OSB volumes, and $13 million from lower selling prices in South America. These decreases were partially offset by a $54 million benefit from higher Siding selling prices.

Segment Results

Siding

The Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia. Our Siding is offered primed (LP® SmartSide® Trim & Siding, LP BuilderSeries® Lap Siding, and LP® Outdoor Building Solutions®) and prefinished (LP® SmartSide® ExpertFinish® Trim & Siding) to meet the needs of builders and installers in new construction and repair and remodeling applications.

Sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

% Change

2026

2025

% Change

Net sales

$

441

$

460

(4

)%

$

801

$

862

(7

)%

Adjusted EBITDA

113

125

(9

)%

214

230

(7

)%

Percent changes in average net sales prices and unit shipments in Siding for the three and six months ended June 30, 2026, compared to the corresponding periods in 2025, were as follows:

Three Months Ended June 30,

2026 versus 2025

Six Months Ended June 30, 2026 versus
2025

Average Net

Selling Price

Unit

Shipments

Average Net

Selling Price

Unit

Shipments

Siding

7

%

(11

)%

8

%

(14

)%

Siding net sales decreased for the three and six months ended June 30, 2026 due to lower volumes, partially offset by higher prices. The increase in pricing was attributable to both the annual price increase and favorable mix.

Adjusted EBITDA declined by $12 million in the quarter and $16 million year to date compared with the same periods in 2025. Net price increases contributed $27 million in the quarter and $54 million year to date, while lower volumes reduced results by $24 million and $59 million, respectively. Raw material, freight, and labor costs also increased by $10 million in the quarter and $15 million year to date, including a $4 million impact from higher crude oil costs in the second quarter.

Oriented Strand Board (OSB)

The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product portfolio known as LP® Structural Solutions (which includes LP® FlameBlock® Fire-Rated Sheathing, LP BurnGuard® FRT OSB, LP WeatherLogic® Air & Water Barrier, LP® TechShield® Radiant Barrier Sheathing, LP Legacy® Premium Sub-Flooring, and LP® TopNotch® 350 Durable Sub-Flooring).

Sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

% Change

2026

2025

% Change

Net sales

$

182

$

250

(27

)%

$

350

$

517

(32

)%

Adjusted EBITDA

(21

)

19

(213

)%

(33

)

73

(146

)%

Percent changes in average net sales prices and unit shipments in OSB for the three and six months ended June 30, 2026, compared to the corresponding periods in 2025, were as follows:

Three Months Ended June 30,

2026 versus 2025

Six Months Ended June 30, 2026 versus
2025

Average Net

Selling Price

Unit

Shipments

Average Net

Selling Price

Unit

Shipments

OSB - Structural Solutions

(10

)%

(24

)%

(16

)%

(21

)%

OSB - Commodity

(20

)%

(1

)%

(26

)%

(7

)%

For the three and six months ended June 30, 2026, OSB net sales decreased year over year by $68 million and $167 million, respectively, primarily driven by lower OSB prices and a decline in sales volumes.

Adjusted EBITDA for the same periods decreased year over year by $40 million and $106 million, respectively, reflecting the impact of lower OSB prices and a decline in sales volumes.

Other

Other operations include LP's South American business that manufactures and distributes OSB structural panels and siding products in South America and certain export markets. Other operations also include timber and timberlands as well as other products, services, and closed operations, which do not qualify as discontinued operations. Additionally, Other includes unallocated corporate expenses.

Other net sales decreased by $3 million and $12 million, for the three and six months ended June 30, 2026, respectively, primarily due to a decline in OSB selling prices in South America. Adjusted EBITDA for the same periods decreased year over year by $12 million and $20 million, respectively, driven by a decline in South America net sales along with higher costs incurred in that market.

Conference Call

LP will hold a conference call to discuss this release today at 11 a.m. Eastern Time (8 a.m. Pacific Time). Investors will have the opportunity to listen to the conference call live by going to investor.lpcorp.com. For those who cannot listen to the live broadcast, the recorded webcast and accompanying presentation will be available to the public by going to investor.lpcorp.com and clicking “Events” under the “News & Events” header.

About LP Building Solutions

As a leader in high-performance building solutions, Louisiana-Pacific Corporation (LP Building Solutions, NYSE: LPX) manufactures engineered wood products that meet the demands of builders, remodelers and homeowners worldwide. LP’s extensive portfolio of innovative and dependable products includes Siding (LP® SmartSide® Trim & Siding, LP® SmartSide® ExpertFinish® Trim & Siding, LP BuilderSeries® Lap Siding, and LP® Outdoor Building Solutions®), LP® Structural Solutions (LP® FlameBlock® Fire-Rated Sheathing, LP BurnGuard® FRT OSB, LP WeatherLogic® Air & Water Barrier, LP® TechShield® Radiant Barrier Sheathing, LP Legacy® Premium Sub-Flooring, and LP® TopNotch® 350 Durable Sub-Flooring), and LP® Oriented Strand Board. In addition to product solutions, LP provides industry-leading customer service and warranties. Since its founding in 1972, LP has been Building a Better World™ by helping customers construct beautiful, durable homes while shareholders build lasting value. Headquartered in Nashville, Tennessee, LP operates over 20 manufacturing facilities across North and South America. For more information, visit LPCorp.com.

Forward-Looking Statements

This news release contains statements concerning Louisiana-Pacific Corporation’s (LP) future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon the beliefs and assumptions of, and on information currently available to, our management; assumptions upon which such forward-looking statements are based are also forward-looking statements. Forward-looking statements can be identified by words such as “may,” “will,” “could,” “should,” “believe,” “expect,” “anticipate,” “assume,” “intend,” “plan,” “seek,” “estimate,” “project,” “target,” “potential,” “continue,” “likely,” or “future,” as well as similar expressions, or the negative or other variations thereof. Forward-looking statements include other statements regarding matters that are not historical facts, including without limitation, plans for product development, forecasts of future costs and expenditures, possible outcomes of legal proceedings, capacity expansion and other growth initiatives, the adequacy of reserves for loss contingencies, and any statements regarding the Company’s financial outlook. Factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include, but are not limited to, the following: changes in governmental fiscal, trade, and monetary policies, including the imposition of higher or new tariffs, trade barriers, and levels of employment; changes in general and global economic conditions, including impacts from rising inflation, supply chain disruptions, or new, ongoing, or escalated geopolitical or military conflicts or tensions; the commodity nature of a segment of our products and the prices for those products, which are determined in significant part by external factors such as total industry capacity and wider industry cycles affecting supply and demand trends; changes in the cost and availability of capital; changes in the cost and availability of financing for home mortgages; changes in the level of home construction and repair and remodel activity, including as a result of labor shortages; changes in competitive conditions and prices for our products; changes in the relationship between supply of and demand for building products; changes in the financial or business conditions of third-party wholesale distributors and dealers of building products; changes in prices and the relationship between the supply of and demand for raw materials, including wood fiber and resins, used in manufacturing our products; changes in the cost and availability of energy, primarily natural gas, electricity, and diesel fuel; changes in the cost and availability of transportation, including transportation services provided by third parties; our dependence on third-party vendors and suppliers for certain goods and services critical to our business; operational and financial impacts from manufacturing our products internationally; difficulties in the development, launch or production ramp-up of new products; our ability to attract and retain qualified executives, management and other key employees; the need to formulate and implement effective succession plans from time to time for key members of our management team; impacts from public health issues (including global pandemics) on the economy, demand for our products or our operations, including the actions and recommendations of governmental authorities to contain such public health issues; our ability to identify and successfully complete and integrate acquisitions, divestitures, joint ventures, capital investments and other corporate strategic transactions; unplanned interruptions to our manufacturing operations, such as explosions, fires, inclement weather, natural disasters, accidents, equipment failures, labor shortages or disruptions, transportation interruptions, supply interruptions, public health issues (including pandemics and quarantines), riots, civil insurrection or social unrest, looting, protests, strikes, and street demonstrations; changes in global or regional climate conditions, the impacts of climate change, and potential government policies adopted in response to such conditions; changes in other significant operating expenses; changes in currency values and exchange rates between the U.S. dollar and other currencies, particularly the Canadian dollar, Brazilian real, Chilean peso, and Argentine peso; changes in, and compliance with, general and industry-specific laws and regulations, including environmental and health and safety laws and regulations, the U.S. Foreign Corrupt Practices Act and anti-bribery laws, laws related to our international business operations, and changes in building codes and standards; changes in tax laws and interpretations thereof; changes in circumstances giving rise to environmental liabilities or expenditures; warranty costs exceeding our warranty reserves; challenges to or exploitation of our intellectual property or other proprietary information by our competitors or other third parties; the resolution of existing and future product-related litigation, environmental proceedings and remediation efforts, and other legal or environmental proceedings or matters; the effect of covenants and events of default contained in our debt instruments; the amount and timing of any repurchases of our common stock and the payment of dividends on our common stock, which will depend on market and business conditions and other considerations; cybersecurity events affecting our information technology systems or those of our third-party providers and the related costs and impact of any disruption on our business; and acts of public authorities, war, political or civil unrest, natural disasters, fire, floods, earthquakes, inclement weather, and other matters beyond our control.

For additional information about factors that could cause actual results, events, and circumstances to differ materially from those described in the forward-looking statements, please refer to LP’s filings with the Securities and Exchange Commission (SEC). We urge you to consider all of the risks, uncertainties, and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this news release. We cannot assure you that the results reflected in or implied by any forward-looking statement will be realized or even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on our operations or financial performance. The forward-looking statements made today are as of the date of this news release. Except as required by law, LP undertakes no obligation to update any such forward-looking statements to reflect new information, subsequent events, or circumstances.

Use of Non-GAAP Information

When evaluating the Company's performance on a U.S. GAAP basis, management utilizes certain non-GAAP financial measures as defined by SEC Regulation G and Regulation S-K Item 10(e). These measures exclude the impact of specific costs, expenses, gains, and losses to evaluate our overall operating performance. Management believes these non-GAAP measures provide users of the financial information with additional meaningful comparison to prior periods, as they generally exclude items that are outside of the normal course of our business or beyond management's control. It is important to note that non-GAAP financial measures do not have standardized definitions and are not defined by U.S. GAAP. In this press release, Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS (as each defined below) are non-GAAP measures that are used by management and external users of our condensed consolidated financial statements such as investors, industry analysts, and lenders.

Adjusted EBITDA is defined as net income excluding interest expense, provision for income taxes, depreciation and amortization, stock-based compensation expense, loss on impairment, business exit credits and charges, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, other non-operating income (expense), income from discontinued operations, net of income taxes, and net income attributed to noncontrolling interest. We have included Adjusted EBITDA in this report because we view it as an important supplemental measure of our performance and believe that it is frequently used by interested persons in the evaluation of companies that have different financing and capital structures and/or tax rates.

Adjusted Income is defined as net income, excluding loss on impairment, business exit credits and charges, product-line discontinuance charges, interest expense outside of normal operations, other operating credits and charges, net, loss on early debt extinguishment, gain (loss) on acquisition, pension settlement charges, income from discontinued operations, net of income taxes, net income attributed to noncontrolling interest, foreign currency gains and losses, and adjusting for a normalized tax rate. Adjusted Diluted EPS is calculated as Adjusted Income divided by diluted shares outstanding, which is a non-GAAP financial measure. We believe that Adjusted Diluted EPS and Adjusted Income are useful measures for evaluating our ability to generate earnings and that providing these measures should allow interested persons to more readily compare the earnings for past and future periods.

During the first quarter of 2026, the Company updated the definition of Adjusted Income to exclude foreign currency gains and losses. These gains and losses primarily arise from the remeasurement of all monetary assets and liabilities including intercompany notes that are denominated in a different currency than the entity's functional currency. The exclusion of these items helps management compare changes in operating results between periods that might otherwise be obscured due to currency fluctuations. The Company believes this exclusion provides investors with a clearer view of underlying operating performance by removing the effects of currency fluctuations that are largely outside of the Company's control and do not reflect its core business activities. For comparability and consistency, all prior period Adjusted Income and Adjusted Diluted EPS measures have been recast to conform to the current presentation. The impact of this update for the three and six months ended June 30, 2025, was an increase to Adjusted Income of $6 million and $9 million, respectively, and an increase to Adjusted Diluted EPS of $0.08 per share and $0.14 per share, respectively.

Reconciliations of Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS to their most directly comparable U.S. GAAP financial measures, net income and net income per share of common stock - diluted, respectively, are presented below. Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS are not substitutes for the U.S. GAAP measures of net income and net income per share of common stock - diluted or for any other U.S. GAAP measures of operating performance. It should be noted that other companies may present similarly titled measures differently, and therefore, as presented by us, these measures may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS have material limitations as performance measures because they exclude items that are actually incurred or experienced in connection with the operation of our business.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

(AMOUNTS IN MILLIONS, EXCEPT PER SHARE AMOUNTS)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net sales

$

664

$

755

$

1,239

$

1,478

Cost of sales

(549

)

(577

)

(1,008

)

(1,103

)

Gross profit

116

178

231

375

Selling, general, and administrative expenses

(80

)

(79

)

(158

)

(154

)

Loss on impairment

—

(17

)

—

(17

)

Other operating credits and charges, net

(5

)

(2

)

(7

)

(4

)

Income from operations

31

80

66

200

Interest expense

(4

)

(4

)

(8

)

(7

)

Investment income

6

4

8

8

Other non-operating (expense) income

1

(7

)

4

(12

)

Income before income taxes

34

73

70

189

Provision for income taxes

(8

)

(19

)

(17

)

(45

)

Equity in unconsolidated affiliate

—

—

—

1

Net income

$

26

$

54

$

53

$

145

Net income per share of common stock:

Basic

$

0.38

$

0.77

$

0.76

$

2.08

Diluted

$

0.38

$

0.77

$

0.76

$

2.07

Average shares of common stock used to compute net income per share:

Basic

70

70

70

70

Diluted

70

70

70

70

CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

(AMOUNTS IN MILLIONS)

June 30, 2026

December 31, 2025

ASSETS

Cash and cash equivalents

$

228

$

292

Receivables, net

143

127

Inventories

373

363

Prepaid expenses and other current assets

28

28

Total current assets

773

809

Property, plant, and equipment, net

1,728

1,709

Timber and timberlands

9

13

Operating lease assets, net

23

23

Goodwill and intangible assets

19

22

Investments in and advances to affiliates

18

17

Other assets

26

25

Deferred tax assets

11

8

Total assets

$

2,607

$

2,627

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable and accrued liabilities

$

240

$

285

Income tax payable

—

5

Total current liabilities

240

291

Long-term debt

348

348

Deferred income taxes

195

177

Non-current operating lease liabilities

20

22

Contingency reserves

26

26

Other long-term liabilities

33

33

Total liabilities

863

896

Stockholders’ equity:

Common stock

85

85

Additional paid-in capital

515

508

Retained earnings

1,633

1,621

Treasury stock

(386

)

(385

)

Accumulated comprehensive loss

(103

)

(98

)

Total stockholders’ equity

1,744

1,731

Total liabilities and stockholders’ equity

$

2,607

$

2,627

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

(AMOUNTS IN MILLIONS)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

26

$

54

$

53

$

145

Adjustments to net income:

Depreciation and amortization

39

36

77

70

Impairment of goodwill and long-lived assets

—

17

—

17

Stock-based compensation expense

5

7

12

12

Deferred taxes

3

(4

)

17

(4

)

Foreign currency remeasurement and transaction (gains) losses

(1

)

6

(6

)

7

Other adjustments, net

6

3

1

2

Changes in assets and liabilities (net of acquisitions and divestitures):

Receivables

5

—

(12

)

(37

)

Inventories

41

19

(10

)

(18

)

Prepaid expenses and other current assets

(2

)

7

1

6

Accounts payable and accrued liabilities

12

8

(21

)

4

Income taxes payable, net of receivables

7

9

(9

)

21

Net cash provided by operating activities

140

162

102

226

CASH FLOWS FROM INVESTING ACTIVITIES:

Property, plant, and equipment additions

(59

)

(68

)

(120

)

(132

)

Net cash used in investing activities

(58

)

(68

)

(120

)

(132

)

CASH FLOWS FROM FINANCING ACTIVITIES:

Payment of cash dividends

(21

)

(19

)

(42

)

(39

)

Purchase of stock

—

—

—

(61

)

Other financing activities

3

2

(5

)

(4

)

Net cash used in financing activities

(18

)

(17

)

(47

)

(105

)

EFFECT OF EXCHANGE RATE ON CASH, CASH EQUIVALENTS, AND RESTRICTED CASH

1

—

1

3

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

64

77

(63

)

(7

)

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

164

256

292

340

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

$

228

$

333

$

228

$

333

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS

The following tables present summary data relating to: (i) housing starts within the United States, (ii) our sales volumes, and (iii) our Overall Equipment Effectiveness (OEE) performance. We consider the following items to be key performance indicators for our business because LP’s management uses these metrics to evaluate our business and trends in our industry, measure our performance, and make strategic decisions. We believe that the key performance indicators presented may provide additional perspective and insights when analyzing our core operating performance. These key performance indicators should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the financial measures that were prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). These measures may not be comparable to similarly titled performance indicators used by other companies.

We monitor housing starts, which is a leading external indicator of residential construction in the United States that correlates with the demand for many of our products. We believe that this is a useful measure for evaluating our results and that providing this measure should allow interested persons to more readily compare our sales volume for past and future periods to an external indicator of product demand. Other companies may present housing start data differently, and therefore, as presented by us, our housing start data may not be comparable to similarly titled performance indicators reported by other companies.

The following table sets forth actual housing starts data reported by the U.S. Census Bureau, as published through July 17, 2026, for the three and six months ended June 30, 2026 and 2025 (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Single-Family

253

264

467

493

Multi-Family

119

111

229

200

372

375

696

692

We monitor sales volumes for our products in our Siding and OSB segments, which we define as the amount of our products sold within the applicable period measured in million square feet (MMSF) on a standard 3/8" thickness basis. Evaluating sales volume by product type helps us identify and address changes in product demand, broad market factors that may affect our performance, and opportunities for future growth. It should be noted that other companies may present sales volume data differently, and therefore, as presented by us, sales volume data may not be comparable to similarly titled measures reported by other companies. We believe that sales volumes can be a useful measure for evaluating and understanding our business.

The following table sets forth sales volumes for the three and six months ended June 30, 2026 and 2025 (in MMSF):

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Siding

446

500

804

935

Total Siding sales volume

446

500

804

935

OSB - Structural Solutions

342

450

669

848

OSB - Commodity

425

430

799

856

Total OSB sales volume

768

880

1,468

1,704

We measure OEE of each of our mills to track improvements in the utilization and productivity of our manufacturing assets. OEE is a composite metric that considers asset uptime (adjusted for capital project downtime and similar events), production rates, and finished product quality. We believe that when used in conjunction with other metrics, OEE can be a useful measure for evaluating our ability to generate profits, and that providing this measure should allow interested persons to monitor operational improvements. We use a best-in-class target across all LP sites that allows us to optimize capital investments, focus on maintenance and reliability improvements, and improve overall equipment efficiency. It should be noted that other companies may present OEE data differently, and therefore, as presented by us, OEE data may not be comparable to similarly titled measures reported by other companies.

OEE for the three and six months ended June 30, 2026 and 2025 for each of our reportable segments is listed below:

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Siding

85

%

83

%

84

%

81

%

OSB

80

%

79

%

79

%

78

%

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

SELECTED SEGMENT INFORMATION

(AMOUNTS IN MILLIONS)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

NET SALES

Siding

$

441

$

460

$

801

$

862

OSB

182

250

350

517

Other

41

45

87

99

Total Sales

$

664

$

755

$

1,239

$

1,478

LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES

RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA, NON-GAAP ADJUSTED INCOME, AND NON-GAAP ADJUSTED DILUTED EPS

(AMOUNTS IN MILLIONS EXCEPT PER SHARE AMOUNTS)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net income

$

26

$

54

$

53

$

145

Add (deduct):

Provision for income taxes

8

19

17

45

Depreciation and amortization

39

36

77

70

Stock-based compensation expense

5

7

12

12

Loss on impairment

—

17

—

17

Other operating credits and charges, net

5

2

6

4

Product-line discontinuance charges

—

—

1

—

Interest expense

4

4

8

7

Investment income

(6

)

(4

)

(8

)

(8

)

Other non-operating expense (income)

(1

)

7

(4

)

12

Adjusted EBITDA

$

79

$

142

$

161

$

304

Siding

$

113

$

125

$

214

$

230

OSB

(21

)

19

(33

)

73

Other

(13

)

(1

)

(19

)

1

Total Adjusted EBITDA

$

79

$

142

$

161

$

304

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net income per share of common stock - diluted

$

0.38

$

0.77

$

0.76

$

2.07

Net income

$

26

$

54

$

53

$

145

Add (deduct):

Loss on impairment

—

17

—

17

Other operating credits and charges, net

5

2

6

4

Product-line discontinuance charges

—

—

1

—

Foreign currency (gain) loss

(1

)

7

(4

)

12

Reported tax provision

8

19

17

45

Adjusted income before tax

37

99

73

223

Normalized tax provision at 25%

(9

)

(25

)

(18

)

(56

)

Adjusted Income

$

28

$

75

$

54

$

167

Diluted shares outstanding

70

70

70

70

Adjusted Diluted EPS

$

0.40

$

1.07

$

0.78

$

2.40

Second quarter net sales of $2.177 billion increased 4.8% on a reported basis, 4.7% on a constant currency1 basis and 4.0% on an organic constant currency1 basis Second quarter diluted earnings per share were $1.03, an increase of 33.8%; adjusted1 diluted earnings per share were $2.07, consistent with the prior year period Company updates full-year 2026 financial guidance , /PRNewswire/ -- Zimmer Biomet Holdings, Inc. (NYSE: ZBH) and (SIX: ZBH) today reported financial results for the quarter ended June 30, 2026.  The Company reported second quarter net sales of $2.177 billion, an increase of 4.8% over the prior year period, an increase of 4.7% on a constant currency1 basis and an increase of 4.0% on an organic constant currency1 basis.  Net earnings for the second quarter were $198.3 million, or $399.6 million on an adjusted1 basis.

Diluted earnings per share were $1.03 for the second quarter, an increase of 33.8%, and adjusted1 diluted earnings per share were $2.07, consistent with the prior year period.  Zimmer Biomet generated $447.9 million in operating cash flow and $308.3 million of free cash flow1 in the second quarter.

1 Reconciliations of these measures to the corresponding U.S. generally accepted accounting principles measures are included in this press release.

"We delivered strong second quarter results with solid top- and bottom-line performance and continued progress on our key growth drivers and commercial transformation," said Ivan Tornos, Chairman, President and CEO of Zimmer Biomet. "With a strong first half, healthy underlying markets, go-to-market changes progressing as planned and continued momentum from our innovation cycle, we are raising our revenue and adjusted EPS guidance for the year. Importantly, we continue to advance our strategic priorities and remain confident our efforts will strengthen our business, build the boldest leader in MedTech, and better position Zimmer Biomet to deliver consistent, durable growth over the long term."

Recent Highlights

Announced increase to share repurchase expectations of up to $1 billion of its common stock during fiscal year 2026. Received U.S. FDA 510(k) clearance and completed first cases of the next generation ROSA® Shoulder System, the first in the industry to support both glenoid and humeral bone preparation for anatomic and reverse techniques. Recognized as "Best Healthcare Robotics Solution" in 2026 MedTech Breakthrough Awards ROSA® Knee with OptimiZe™. Named Chintan Desai president of the company's Asia Pacific Region to replace Sang Yi, who will depart the company on Aug. 28. Named to TIME's 2026 list of America's Best Companies, demonstrating excellence across employee satisfaction, financial results and sustainability transparency. Issued 2025 Sustainability Report, highlighting meaningful progress reducing the company's environmental footprint, strengthening communities and expanding access to care. Zimmer Biomet Institute held its inaugural Sharpening Your Edge immersive, hands-on bioskills training experience, designed to deliver immediate, practice-ready impact to early career surgeons. Geographic and Product Category Sales

The following sales tables provide results by geography and product category for the three and six-month periods ended June 30, 2026, as well as the percentage change compared to the prior year periods, on both a reported basis and a constant currency basis.  Percentage change is also presented on an organic constant currency basis to exclude the impact on net sales from the April 2025 acquisition of Paragon 28, Inc. ("Paragon 28").

NET SALES - THREE MONTHS ENDED JUNE 30, 2026

(in millions, unaudited)

Organic

Constant

Constant

Net

Currency

Currency

Sales

% Change

% Change

% Change

Geographic Results

United States

$

1,239.9

5.6

%

5.6

%

4.6

%

International

937.0

3.7

3.5

3.1

Total

$

2,177.0

4.8

%

4.7

%

4.0

%

Product Categories

Knees

United States

$

455.0

1.4

%

1.4

%

1.4

%

International

374.0

(0.9)

(1.5)

(1.5)

Total

828.9

0.4

0.1

0.1

Hips

United States

288.5

5.9

5.9

5.9

International

274.1

4.0

4.2

4.2

Total

562.7

5.0

5.1

5.1

S.E.T. *

586.0

6.4

6.2

3.4

Technology & Data, Bone Cement and Surgical

199.4

21.1

21.5

21.5

Total

$

2,177.0

4.8

%

4.7

%

4.0

%

* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic

NET SALES - SIX MONTHS ENDED JUNE 30, 2026

(in millions, unaudited)

Organic

Constant

Constant

Net

Currency

Currency

Sales

% Change

% Change

% Change

Geographic Results

United States

$

2,449.3

7.1

%

7.1

%

3.9

%

International

1,814.4

6.8

3.8

2.8

Total

$

4,263.7

7.0

%

5.7

%

3.4

%

Product Categories

Knees

United States

$

924.1

1.8

%

1.8

%

1.8

%

International

733.4

3.1

(0.2)

(0.2)

Total

1,657.5

2.4

0.9

0.9

Hips

United States

566.1

5.5

5.5

5.5

International

520.7

5.2

2.7

2.7

Total

1,086.8

5.3

4.2

4.2

S.E.T. *

1,148.2

12.5

11.3

2.6

Technology & Data, Bone Cement and Surgical

371.2

18.0

16.8

16.8

Total

$

4,263.7

7.0

%

5.7

%

3.4

%

* Sports Medicine, Extremities, Trauma, Craniomaxillofacial and Thoracic

Amounts reported in millions are computed based on the actual amounts.  As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding.  Percentages presented are calculated from the underlying unrounded amounts.

Financial Guidance

The Company is updating its full-year 2026 financial guidance as follows:

Projected Year Ending December 31, 2026

Previous Guidance

Updated Guidance

2026 Reported Revenue Change

2.5% - 4.5%

3.9% - 4.9%

Foreign Currency Exchange Impact

+0.5 %

+0.5 %

2026 Constant Currency Revenue Change

2.0% - 4.0%

3.4% - 4.4%

2026 Organic Constant Currency Revenue Change(1)

1.0% - 3.0%

2.25% - 3.25%

Adjusted Diluted EPS(2)

$8.40 - $8.55

$8.47 - $8.59

(1)

Excludes the impact of the Paragon 28 acquisition through the one-year anniversary of the acquisition date, which is estimated to be approximately 110bps.

(2)

This measure is a non-GAAP financial measure for which a reconciliation to the most directly comparable GAAP financial measure is not available without unreasonable efforts.  See "Forward-Looking Non-GAAP Financial Measures" below, which identifies the information that is unavailable without unreasonable efforts and provides additional information.  It is probable that this forward-looking non-GAAP financial measure may be materially different from the corresponding GAAP financial measure.

Conference Call

The Company will conduct its second quarter 2026 investor conference call today, August 5, 2026, at 8:30 a.m. ET.  The audio webcast can be accessed via Zimmer Biomet's Investor Relations website at https://investor.zimmerbiomet.com.  It will be archived for replay following the conference call. 

About the Company

Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health.  We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence. 

With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers.  Our legacy continues to come to life today through our progressive culture of evolution and innovation.

For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X / Twitter at www.x.com/zimmerbiomet.  

Website Information

We routinely post important information for investors on our website, www.zimmerbiomet.com, in the "Investor Relations" section.  We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD.  Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. 

The information contained on, or that may be accessed through, our website or any other website referenced herein is not incorporated by reference into, and is not a part of, this document.

Note on Non-GAAP Financial Measures

This press release and our commentary in our investor conference call today include non-GAAP financial measures that differ from financial measures calculated in accordance with U.S. generally accepted accounting principles ("GAAP").  These non-GAAP financial measures may not be comparable to similar measures reported by other companies and should be considered in addition to, and not as a substitute for, or superior to, other measures prepared in accordance with GAAP.

Net sales change information for the three and six-month periods ended June 30, 2026 is presented on a GAAP (reported) basis and on a constant currency basis. Net sales change for these periods is also presented on an organic constant currency basis to exclude the impact on net sales from the April 2025 acquisition of Paragon 28.  Constant currency percentage changes exclude the effects of foreign currency exchange rates.  They are calculated by translating current and prior-period sales at the same predetermined exchange rate.  The translated results are then used to determine year-over-year percentage increases or decreases.  Projected revenue change information for the year ending December 31, 2026, is also presented on an organic constant currency basis.  In addition to excluding the projected effects of foreign currency exchange rates, projected 2026 organic constant currency revenue change also excludes the impact on net sales from the April 2025 acquisition of Paragon 28 through the one-year anniversary of the acquisition date in April 2026.

Net earnings and diluted earnings per share for the three and six-month periods ended June 30, 2026 and 2025 are presented on a GAAP (reported) basis and on an adjusted basis.  These adjusted financial measures exclude the effects of certain items, which are detailed in the reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures presented later in the press release. 

Free cash flow is an additional non-GAAP measure that is presented in this press release.  Free cash flow is computed by deducting additions to instruments and other property, plant and equipment from net cash provided by operating activities.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this press release.  This press release also contains supplemental reconciliations of additional non-GAAP financial measures that the Company presents in other contexts.  These additional non-GAAP financial measures are computed from the most directly comparable GAAP financial measure as indicated in the applicable reconciliation.

Management uses non-GAAP financial measures internally to evaluate the performance of the business.  Additionally, management believes these non-GAAP measures provide meaningful incremental information to investors to consider when evaluating the performance of the Company.  Management believes these measures offer the ability to make period-to-period comparisons that are not impacted by certain items that can cause dramatic changes in reported income but that do not impact the fundamentals of our operations.  The non-GAAP measures enable the evaluation of operating results and trend analysis by allowing a reader to better identify operating trends that may otherwise be masked or distorted by these types of items that are excluded from the non-GAAP measures.  In addition, constant currency revenue change, adjusted operating profit, adjusted diluted earnings per share and free cash flow are used as performance metrics in our incentive compensation programs.

Forward-Looking Non-GAAP Financial Measures

This press release and our commentary in our investor conference call today also include certain forward-looking non-GAAP financial measures for the year ending December 31, 2026.  We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures.  For instance, we exclude the impact of restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; and certain legal and tax matters.  We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures (other than projected 2026 organic constant currency revenue change) to the most directly comparable forward-looking GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable efforts.  For example, the timing of certain transactions is difficult to predict because management's plans may change.  In addition, the Company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors.  It is probable that these forward-looking non-GAAP financial measures may be materially different from the corresponding GAAP financial measures.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding financial guidance, statements regarding macro pressures, including the impact of such pressures on our business, and any statements about our forecasts, expectations, plans, intentions, commitments, strategies or prospects.  All statements other than statements of historical or current fact are, or may be deemed to be, forward-looking statements.  Such statements are based upon the current beliefs, expectations and assumptions of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual outcomes and results to differ materially from the forward-looking statements.  These risks, uncertainties and changes in circumstances include, but are not limited to: competition; pricing pressures; dependence on new product development, technological advances and innovation; changes in customer demand for our products and services caused by demographic changes, obsolescence, development of different therapies or other factors; our ability to attract, retain, develop and maintain adequate succession plans for the highly skilled employees, senior management, independent agents and distributors we need to support our business; the transformation of our sales and distribution network in the U.S. and other markets; shifts in the product category or regional sales mix of our products and services; the risks and uncertainties related to our ability to successfully execute our restructuring plans; the risks and uncertainties relating to our ability to successfully execute on our product portfolio rationalization plans; control of costs and expenses; risks related to the ability to realize the anticipated benefits of our acquisitions, including the possibility that the expected benefits from such transactions will not be realized or will not be realized within the expected time period; the risk that acquired businesses will not be integrated successfully; the effects of business disruptions affecting us, our suppliers, customers or payors, either alone or in combination with other risks on our business and operations; the risks and uncertainties related to our ability to successfully integrate the operations, products, service providers, agents, employees, sales representatives and distributors of acquired companies; the effect of the potential disruption of management's attention from ongoing business operations due to integration matters related to mergers and acquisitions; the effect of mergers and acquisitions on our relationships with customers, suppliers and lenders and on our operating results and businesses generally; unplanned delays, disruptions and expenses attributable to our enterprise resource planning and other system updates; the ability to form and implement alliances; dependence on a limited number of suppliers for key raw materials and other inputs and for outsourced activities; the risk of disruptions in the supply of materials and components used in manufacturing or sterilizing our products; breaches or failures of our (or of our business partners' or other third parties') information technology systems or products, including by cyberattack, unauthorized access or theft; the outcome of government investigations; the impact of healthcare reform and cost containment measures, including efforts sponsored by government agencies, legislative bodies, the private sector and healthcare purchasing organizations, through reductions in reimbursement levels, repayment demands and otherwise; the effects of natural disasters, or of legal, regulatory or market measures to address natural disasters; the effects of our commitments, goals and disclosures relating to corporate responsibility matters; the impact of substantial indebtedness on our ability to service our debt obligations and/or refinance amounts outstanding under our debt obligations at maturity on terms favorable to us, or at all; changes in tax obligations arising from examinations by tax authorities and from changes in tax laws in jurisdictions where we do business, including as a result of the "base erosion and profit shifting" project undertaken by the Organisation for Economic Co-operation and Development and otherwise; challenges to the tax-free nature of the ZimVie Inc. spinoff transaction and the subsequent liquidation of our retained interest in ZimVie Inc.; the risk of additional tax liability due to the recategorization of our independent agents and distributors to employees; changes in tariffs relating to imports to the U.S. and other countries; the risk that material impairment of the carrying value of our intangible assets, including goodwill, could negatively affect our operating results; changes in general domestic and international economic conditions, including interest rate and currency exchange rate fluctuations; changes in general industry and market conditions, including domestic and international growth, inflation and currency exchange rates; the domestic and international business impact of political, social and economic instability, tariffs, trade restrictions and embargoes, sanctions, wars, disputes and other conflicts, including on our ability to operate in, export from or collect accounts receivable in affected countries; challenges relating to changes in and compliance with governmental laws and regulations affecting our U.S. and international businesses, including regulations of the U.S. Food and Drug Administration ("FDA") and other government regulators relating to medical products, healthcare fraud and abuse laws and data privacy and cybersecurity laws; the success of our quality and operational excellence initiatives; the ability to remediate matters identified in inspectional observations issued by the FDA and other regulators, while continuing to satisfy the demand for our products; product liability, intellectual property and commercial litigation losses; and the ability to obtain and maintain adequate intellectual property protection.  A further list and description of these risks and uncertainties and other factors can be found in our Annual Report on Form 10-K for the year ended December 31, 2025, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and our subsequent filings with the Securities and Exchange Commission (SEC).  Copies of these filings are available online at www.sec.gov, www.zimmerbiomet.com or on request from us. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC.  Forward-looking statements speak only as of the date they are made, and we expressly disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers of this press release are cautioned not to rely on these forward-looking statements since there can be no assurance that these forward-looking statements will prove to be accurate.  This cautionary note is applicable to all forward-looking statements contained in this press release.

Note: Amounts reported in millions within this press release are computed based on the actual amounts.  As a result, the sum of the components reported in millions may not equal the total amount reported in millions due to rounding.  Certain columns and rows within tables may not add due to the use of rounded numbers.  Percentages presented are calculated from the underlying unrounded amounts.

ZIMMER BIOMET HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, except per share amounts, unaudited)

2026

2025

Net Sales

$

2,177.0

$

2,077.3

Cost of products sold, excluding intangible asset amortization

635.5

592.2

Intangible asset amortization

163.4

160.6

Research and development

104.8

113.3

Selling, general and administrative

899.3

814.8

Restructuring and other cost reduction initiatives

29.8

17.5

Acquisition, integration, divestiture and related

18.1

78.9

Operating expenses

1,850.9

1,777.3

Operating Profit

326.1

300.0

Other income, net

1.9

3.9

Interest expense, net

(72.9)

(79.3)

Earnings before income taxes

255.1

224.6

Provision for income taxes

55.5

71.2

Net Earnings

199.6

153.4

Less: Net earnings attributable to noncontrolling interest

1.3

0.6

Net Earnings of Zimmer Biomet Holdings, Inc.

$

198.3

$

152.8

Earnings Per Common Share

Basic

$

1.03

$

0.77

Diluted

$

1.03

$

0.77

Weighted Average Common Shares Outstanding

Basic

192.2

197.9

Diluted

192.8

198.3

ZIMMER BIOMET HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

FOR THE SIX MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, except per share amounts, unaudited)

2026

2025

Net Sales

$

4,263.7

$

3,986.4

Cost of products sold, excluding intangible asset amortization

1,211.6

1,142.0

Intangible asset amortization

325.5

311.6

Research and development

208.2

223.9

Selling, general and administrative

1,749.3

1,573.5

Restructuring and other cost reduction initiatives

36.1

53.5

Acquisition, integration, divestiture and related

33.7

89.5

Operating expenses

3,564.4

3,394.0

Operating Profit

699.2

592.3

Other (expense) income, net

(1.1)

6.9

Interest expense, net

(141.7)

(145.5)

Earnings before income taxes

556.4

453.6

Provision for income taxes

118.5

117.6

Net Earnings

437.9

336.0

Less: Net earnings attributable to noncontrolling interest

1.5

1.1

Net Earnings of Zimmer Biomet Holdings, Inc.

$

436.5

$

334.9

Earnings Per Common Share

Basic

$

2.25

$

1.69

Diluted

$

2.25

$

1.68

Weighted Average Common Shares Outstanding

Basic

193.6

198.4

Diluted

194.3

199.0

ZIMMER BIOMET HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, unaudited)

June 30,

December 31,

2026

2025

Assets

Cash and cash equivalents

$

410.0

$

591.9

Receivables, net

1,769.5

1,704.4

Inventories

2,270.3

2,286.4

Other current assets

646.9

537.3

Total current assets

5,096.7

5,119.9

Property, plant and equipment, net

2,236.8

2,207.1

Goodwill

9,919.5

9,947.1

Intangible assets, net

4,461.6

4,717.3

Other assets

1,083.3

1,100.3

Total Assets

$

22,797.8

$

23,091.7

Liabilities and Stockholders' Equity

Current liabilities

$

1,812.0

$

1,996.6

Current portion of long-term debt

1,201.5

587.1

Other long-term liabilities

874.3

870.2

Long-term debt

6,277.5

6,932.0

Stockholders' equity

12,632.5

12,705.8

Total Liabilities and Stockholders' Equity

$

22,797.8

$

23,091.7

ZIMMER BIOMET HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, unaudited)

2026

2025

Cash flows provided by (used in) operating activities

Net earnings

$

437.9

$

336.0

Depreciation and amortization

540.8

526.2

Share-based compensation

48.8

40.8

Changes in operating assets and liabilities, net of acquired assets and liabilities

Income taxes

(80.1)

(132.0)

Receivables

(24.0)

(18.6)

Inventories

(51.4)

(40.2)

Accounts payable and accrued liabilities

(91.0)

40.4

Other assets and liabilities

26.1

8.3

Net cash provided by operating activities

807.2

761.0

Cash flows provided by (used in) investing activities

Additions to instruments

(162.6)

(140.2)

Additions to other property, plant and equipment

(90.5)

(94.7)

Net investment hedge settlements

10.8

3.5

Business combination investments, net of acquired cash

-

(1,226.3)

Acquisition of intangible assets

(101.2)

(32.4)

Other investing activities

(6.3)

(0.3)

Net cash used in investing activities

(349.8)

(1,490.4)

Cash flows provided by (used in) financing activities

Net proceeds on revolving facilities

30.0

220.0

Proceeds from senior notes

-

1,748.1

Redemption of senior notes

-

(863.0)

Dividends paid to stockholders

(93.4)

(95.3)

Proceeds from employee stock compensation plans

12.4

17.1

Business combination contingent consideration payments

(69.2)

(17.4)

Debt issuance costs

(1.3)

(17.3)

Repurchase of common stock

(500.8)

(237.0)

Other financing activities

(17.9)

(16.1)

Net cash (used in) provided by financing activities

(640.3)

739.2

Effect of exchange rates on cash and cash equivalents

1.1

21.6

Change in cash and cash equivalents

(181.9)

31.4

Cash and cash equivalents, beginning of year

591.9

525.5

Cash and cash equivalents, end of period

$

410.0

$

556.9

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF REPORTED NET SALES % CHANGE TO

CONSTANT CURRENCY AND ORGANIC CONSTANT CURRENCY % CHANGE

(unaudited)

For the Three Months Ended

June 30, 2026 vs. 2025

Organic

Foreign

Constant

Paragon

Constant

Exchange

Currency

28

Currency

% Change

Impact

% Change

Impact

% Change

Geographic Results

United States

5.6

%

-

%

5.6

%

1.0

%

4.6

%

International

3.7

0.2

3.5

0.4

3.1

Total

4.8

%

0.1

%

4.7

%

0.7

%

4.0

%

Product Categories

Knees

United States

1.4

%

-

%

1.4

%

-

%

1.4

%

International

(0.9)

0.6

(1.5)

-

(1.5)

Total

0.4

0.3

0.1

-

0.1

Hips

United States

5.9

-

5.9

-

5.9

International

4.0

(0.2)

4.2

-

4.2

Total

5.0

(0.1)

5.1

-

5.1

S.E.T.

6.4

0.2

6.2

2.8

3.4

Technology & Data, Bone Cement and Surgical

21.1

(0.4)

21.5

-

21.5

Total

4.8

%

0.1

%

4.7

%

0.7

%

4.0

%

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF REPORTED NET SALES % CHANGE TO

CONSTANT CURRENCY AND ORGANIC CONSTANT CURRENCY % CHANGE

(unaudited)

For the Six Months Ended

June 30, 2026 vs. 2025

Organic

Foreign

Constant

Paragon

Constant

Exchange

Currency

28

Currency

% Change

Impact

% Change

Impact

% Change

Geographic Results

United States

7.1

%

-

%

7.1

%

3.2

%

3.9

%

International

6.8

3.0

3.8

1.0

2.8

Total

7.0

%

1.3

%

5.7

%

2.3

%

3.4

%

Product Categories

Knees

United States

1.8

%

-

%

1.8

%

-

%

1.8

%

International

3.1

3.3

(0.2)

-

(0.2)

Total

2.4

1.5

0.9

-

0.9

Hips

United States

5.5

-

5.5

-

5.5

International

5.2

2.5

2.7

-

2.7

Total

5.3

1.1

4.2

-

4.2

S.E.T.

12.5

1.2

11.3

8.7

2.6

Technology & Data, Bone Cement and Surgical

18.0

1.2

16.8

-

16.8

Total

7.0

%

1.3

%

5.7

%

2.3

%

3.4

%

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF REPORTED TO ADJUSTED RESULTS

FOR THE THREE MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, except per share amounts, unaudited)

FOR THE THREE MONTHS ENDED JUNE 30, 2026

Cost of products
sold, excluding
intangible asset
amortization

Intangible asset
amortization

Selling, general
and administrative

Restructuring
and other
cost
reduction
initiatives

Acquisition,
integration,
divestiture
and related

Other
income,
net

Provision
for income
taxes

Net
Earnings of
Zimmer
Biomet
Holdings,
Inc.

Diluted
earnings
per
common
share

As Reported

$

635.5

$

163.4

$

899.3

$

29.8

$

18.1

$

1.9

$

55.5

$

198.3

$

1.03

Inventory and manufacturing-related
charges(1)

(6.0)

-

-

-

-

-

0.3

5.7

0.03

Intangible asset amortization(2)

-

(163.4)

-

-

-

-

33.9

129.5

0.67

Restructuring and other cost
reduction initiatives(3)

-

-

-

(29.8)

-

-

6.4

23.4

0.12

Acquisition, integration, divestiture
and related(4)

-

-

-

-

(18.1)

-

1.7

16.4

0.09

Litigation(5)

-

-

(12.3)

-

-

-

3.1

9.2

0.05

Other charges(6)

-

-

(4.0)

-

-

0.1

1.0

3.1

0.02

Other certain tax adjustments(7)

-

-

-

-

-

-

(14.0)

14.0

0.07

As Adjusted

$

629.5

$

-

$

883.0

$

-

$

-

$

2.0

$

87.9

$

399.6

$

2.07

FOR THE THREE MONTHS ENDED JUNE 30, 2025

Cost of
products
sold,
excluding
intangible
asset
amortization

Intangible
asset
amortization

Research
and
development

Selling,
general and
administrative

Restructuring
and other
cost
reduction
initiatives

Acquisition,
integration,

divestiture
and related

Other
income,
net

Interest
expense,
net

Provision
for
income
taxes

Net
Earnings
of

 Zimmer
Biomet

 Holdings,
Inc.

Diluted
earnings
per
common
share

As Reported

$

592.2

$

160.6

$

113.3

$

814.8

$

17.5

$

78.9

$

3.9

$

(79.3)

$

71.2

$

152.8

$

0.77

Inventory and manufacturing-
related charges(1)

(17.0)

-

-

-

-

-

-

-

4.7

12.3

0.06

Intangible asset amortization(2)

-

(160.6)

-

-

-

-

-

-

32.6

128.0

0.65

Restructuring and other cost
reduction initiatives(3)

-

-

-

-

(17.5)

-

-

-

3.9

13.6

0.07

Acquisition, integration,
divestiture and related(4)

-

-

-

-

-

(78.9)

-

-

13.4

65.5

0.33

European Union Medical
Device Regulation(8)

-

-

(4.3)

-

-

-

-

-

1.0

3.3

0.02

Other charges(6)

-

-

-

(0.3)

-

-

(0.5)

0.8

0.1

0.5

-

Other certain tax
adjustments(7)

-

-

-

-

-

-

-

-

(35.2)

35.2

0.18

As Adjusted

$

575.2

$

-

$

109.0

$

814.5

$

-

$

-

$

3.4

$

(78.5)

$

91.7

$

411.2

$

2.07

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF REPORTED TO ADJUSTED RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, except per share amounts, unaudited)

FOR THE SIX MONTHS ENDED JUNE 30, 2026

Cost of products
sold, excluding
intangible asset
amortization

Intangible
asset
amortization

Selling, general
and
administrative

Restructuring
and other
cost
reduction
initiatives

Acquisition,
integration,
divestiture
and related

Other
(expense)
income,

net

Provision
for

income
taxes

Net Earnings
of
Zimmer
Biomet
Holdings,
Inc.

Diluted
earnings per
common
share

As Reported

$

1,211.6

$

325.5

$

1,749.3

$

36.1

$

33.7

$

(1.1)

$

118.5

$

436.5

$

2.25

Inventory and manufacturing-related
charges(1)

(19.3)

-

-

-

-

-

3.9

15.4

0.08

Intangible asset amortization(2)

-

(325.5)

-

-

-

-

68.1

257.4

1.32

Restructuring and other cost reduction
initiatives(3)

-

-

-

(36.1)

-

-

7.4

28.7

0.15

Acquisition, integration, divestiture and
related(4)

-

-

-

-

(33.7)

-

3.1

30.6

0.16

Litigation(5)

-

-

(12.3)

-

-

-

3.1

9.2

0.05

Other charges(6)

-

-

(4.1)

-

-

0.9

-

1.2

3.8

0.02

Other certain tax adjustments(7)

-

-

-

-

-

-

(27.5)

27.5

0.14

As Adjusted

$

1,192.4

$

-

$

1,732.9

$

-

$

-

$

(0.2)

$

177.8

$

809.0

$

4.16

FOR THE SIX MONTHS ENDED JUNE 30, 2025

Cost of
products
sold,
excluding
intangible
asset
amortization

Intangible
asset
amortization

Research

and
development

Selling,
general and
administrative

Restructuring
and other

 cost
reduction
initiatives

Acquisition,
integration,
divestiture
and related

Other
(expense)

 income,
net

Interest
expense,
net

Provision
for

income
taxes

Net
Earnings
of
Zimmer

 Biomet

 Holdings,
Inc.

Diluted
earnings
per
common
share

As Reported

$

1,142.0

$

311.6

$

223.9

$

1,573.5

$

53.5

$

89.5

$

6.9

$

(145.5)

$

117.6

$

334.9

$

1.68

Inventory and manufacturing-related charges(1)

(23.2)

-

-

-

-

-

-

-

6.8

16.4

0.08

Intangible asset amortization(2)

-

(311.6)

-

-

-

-

-

-

60.8

250.8

1.26

Restructuring and other cost reduction
initiatives(3)

-

-

-

-

(53.5)

-

-

-

11.1

42.4

0.21

Acquisition, integration, divestiture and
related(4)

-

-

-

-

-

(89.5)

-

-

15.3

74.2

0.37

European Union Medical Device Regulation(8)

-

-

(8.7)

-

-

-

-

-

1.9

6.8

0.04

Other charges(6)

-

-

-

(0.2)

-

-

(0.5)

5.6

2.8

2.5

0.01

Other certain tax adjustments(7)

-

-

-

-

-

-

-

-

(44.3)

44.3

0.22

As Adjusted

$

1,118.8

$

-

$

215.3

$

1,573.4

$

-

$

-

$

6.4

$

(139.9)

$

172.0

$

772.3

$

3.88

(1)

Inventory and manufacturing-related charges include excess and obsolete inventory charges on certain product lines we intend to discontinue by 2032, inventory step-up expense, and other inventory and manufacturing-related charges or gains.  Inventory step-up expense represents the incremental expense of inventory sold recognized at its fair value after business combination accounting is applied versus the expense that would have been recognized if sold at its cost to manufacture.  Since only the inventory that existed at the business combination date was stepped-up to fair value, we believe excluding the incremental expense provides investors useful information as to what our costs may have been if we had not been required to increase the inventory's book value to fair value.  The excess and obsolete inventory impacts to product lines we intend to discontinue were income of $3.9 million and expense of $3.0 million in the three-month periods ended June 30, 2026 and 2025, respectively, and were income of $2.6 million and expense of $5.6 million in the six-month periods ended June 30, 2026 and 2025, respectively.  Inventory step-up expense was $12.0 million and $7.9 million in the three-month periods ended June 30, 2026 and 2025, respectively, and were $24.0 million and $7.9 million in the six-month periods ended June 30, 2026 and 2025, respectively.   

(2)

We exclude intangible asset amortization as well as deferred tax rate changes on our intangible assets from our non-GAAP financial measures because we internally assess our performance against our peers without this amortization.  Due to various levels of acquisitions among our peers, intangible asset amortization can vary significantly from company to company.

(3)

In December 2019, 2021 and 2023, and in February and December 2025, we initiated global restructuring programs that included a reorganization of key businesses and an overall effort to reduce costs in order to accelerate decision-making, focus the organization on priorities to drive growth and, in the case of the December 2021 program, to prepare for the spinoff of ZimVie Inc. ("ZimVie").  Restructuring and other cost reduction initiatives also include other cost reduction and optimization initiatives that have the goal of reducing costs across the organization.  The costs include employee termination benefits; contract terminations for facilities and sales agents; and other charges, such as consulting fees, project management expenses, retention period salaries and benefits and relocation costs. 

(4)

The acquisition, integration, divestiture and related gains and expenses we have excluded from our non-GAAP financial measures resulted from various acquisitions, post-separation costs we have incurred related to ZimVie and gains related to a transition services agreement for services we provided to ZimVie and a transition manufacturing and supply agreement for products we supplied to ZimVie for a limited period.  The expenses in each of the three and six-month periods ended June 30, 2025, include $43.4 million of compensation expense related to the discretionary accelerated vesting of Paragon 28 unvested restricted stock units as agreed upon as part of the merger agreement.  In the three-month periods ended June 30, 2026 and 2025, this line item includes expense of $11.1 million and income of $9.4 million, respectively, related to changes in the estimated fair values of contingent consideration due to updated forecasts of net sales from certain acquisitions.  In the six-month periods ended June 30, 2026 and 2025, this line item includes expense of $19.2 million and income of $7.7 million, respectively, related to changes in estimated fair values of contingent consideration.   

(5)

We are involved in patent litigation, product liability litigation, commercial litigation and other various litigation matters.  We review litigation matters from both a qualitative and quantitative perspective to determine if excluding the losses or gains will provide our investors with useful incremental information.  Litigation matters can vary in their characteristics, frequency and significance to our operating results.  The litigation charges and gains excluded from our non-GAAP financial measures in the periods presented relate to certain product liability litigation and claims across multiple districts and countries.  Once a litigation matter has been excluded from our non-GAAP financial measures in a particular period, any additional expenses or gains from changes in estimates are also excluded, even if they are not significant, to ensure consistency in our non-GAAP financial measures from period-to-period.

(6)

We have incurred other various expenses from specific events or projects that we consider highly variable or that have a significant impact to our operating results that we have excluded from our non-GAAP measures.  These include gains and losses from changes in fair value on our equity investments and impairment of instruments related to certain product lines we intend to discontinue, among other various costs.  In addition, in February 2025 we issued senior notes in order to have the necessary cash-on-hand to acquire Paragon 28 once regulatory approval was received.  We have excluded from our non-GAAP financial measures the interest on this debt related to the principal amount of the estimated purchase price and acquisition-related costs up through the acquisition date.  Interest expense subsequent to the acquisition date has not been excluded. 

(7)

Other certain tax adjustments are primarily related to significant and discrete tax adjustments. The primary adjustments include benefits of $13.1 million and $8.2 million in the three-month periods ended June 30, 2026, and 2025, respectively, and benefits of $25.2 million and $16.7 million in the six-month periods ended June 30, 2026, and 2025, respectively, related to Swiss tax reform; and benefits of $26.8 million in each of the three and six-month periods ended June 30, 2025, related to certain unremitted foreign earnings (no impact on 2026 periods).

(8)

The European Union Medical Device Regulation imposes significant additional premarket and postmarket requirements.  The new regulations provided a transition period until May 2021 for previously-approved medical devices to meet the additional requirements.  For certain devices, this transition period was extended until May 2024.  A conditional extension of the transition period has been implemented until December 2027 and 2028 depending on the legacy medical device's risk class.  We are excluding from our non-GAAP financial measures the incremental costs incurred to establish initial compliance with the regulations related to our previously-approved medical devices.  The incremental costs primarily relate to temporary personnel and third-party professionals necessary to supplement our internal resources.  Starting January 1, 2026, we do not expect to incur any significant incremental costs related to these new regulations.

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF NET CASH PROVIDED BY OPERATING

ACTIVITIES TO FREE CASH FLOW

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net cash provided by operating activities

$

447.9

$

378.2

$

807.2

$

761.0

Additions to instruments

(85.4)

(80.5)

(162.6)

(140.2)

Additions to other property, plant and equipment

(54.2)

(50.0)

(90.5)

(94.7)

Free cash flow

$

308.3

$

247.7

$

554.1

$

526.1

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF GROSS PROFIT & MARGIN

TO ADJUSTED GROSS PROFIT & MARGIN

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net Sales

$

2,177.0

$

2,077.3

$

4,263.7

$

3,986.4

Cost of products sold, excluding intangible asset amortization

635.5

592.2

1,211.6

1,142.0

Intangible asset amortization

163.4

160.6

325.5

311.6

Gross Profit

$

1,378.1

$

1,324.5

$

2,726.6

$

2,532.8

Inventory and manufacturing-related charges

6.0

17.0

19.3

23.2

Intangible asset amortization

163.4

160.6

325.5

311.6

Adjusted gross profit

$

1,547.5

$

1,502.1

$

3,071.4

$

2,867.6

Gross margin

63.3

%

63.8

%

63.9

%

63.5

%

Inventory and manufacturing-related charges

0.3

0.8

0.5

0.6

Intangible asset amortization

7.5

7.7

7.6

7.8

Adjusted gross margin

71.1

%

72.3

%

72.0

%

71.9

%

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF OPERATING PROFIT & MARGIN TO ADJUSTED OPERATING PROFIT & MARGIN

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 and 2025

(in millions, unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Operating profit

$

326.1

$

300.0

$

699.2

$

592.3

Inventory and manufacturing-related charges

6.0

17.0

19.3

23.2

Intangible asset amortization

163.4

160.6

325.5

311.6

Restructuring and other cost reduction initiatives

29.8

17.5

36.1

53.5

Acquisition, integration, divestiture and related

18.1

78.9

33.7

89.5

Litigation

12.3

-

12.3

-

European Union Medical Device Regulation

-

4.3

-

8.7

Other charges

4.0

0.3

4.1

0.2

Adjusted operating profit

$

559.7

$

578.5

$

1,130.2

$

1,079.0

Operating profit margin

15.0

%

14.4

%

16.4

%

14.9

%

Inventory and manufacturing-related charges

0.3

0.8

0.5

0.6

Intangible asset amortization

7.5

7.7

7.6

7.8

Restructuring and other cost reduction initiatives

1.4

0.8

0.8

1.3

Acquisition, integration, divestiture and related

0.8

3.8

0.8

2.2

Litigation

0.6

-

0.3

-

European Union Medical Device Regulation

-

0.2

-

0.2

Other charges

0.2

-

0.1

-

Adjusted operating profit margin

25.7

%

27.8

%

26.5

%

27.1

%

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF EFFECTIVE TAX RATE TO ADJUSTED EFFECTIVE TAX RATE

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 and 2025

(unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Effective tax rate

21.8

%

31.7

%

21.3

%

25.9

%

Tax effect of adjustments made to earnings before taxes(1)

1.6

2.2

1.6

2.1

Other certain tax adjustments(2)

(5.4)

(15.7)

(4.9)

(9.8)

Adjusted effective tax rate

18.0

%

18.2

%

18.0

%

18.2

%

(1) Includes inventory and manufacturing-related charges; intangible asset amortization; restructuring and other cost reduction initiatives; acquisition, integration, divestiture and related; litigation; European Union Medical Device Regulation; and other charges

(2) Other certain tax adjustments are primarily related to significant and discrete tax adjustments. The primary adjustments include benefits of $13.1 million and $8.2 million in the three-month periods ended June 30, 2026, and 2025, respectively, and benefits of $25.2 million and $16.7 million in the six-month periods ended June 30, 2026, and 2025, respectively, related to Swiss tax reform; and benefits of $26.8 million in each of the three and six-month periods ended June 30, 2025, related to certain unremitted foreign earnings (no impact on 2026 periods).

ZIMMER BIOMET HOLDINGS, INC.

RECONCILIATION OF DEBT TO NET DEBT

AS OF JUNE 30, 2026 and DECEMBER 31, 2025

(in millions, unaudited)

June 30, 2026

December 31, 2025

Debt, both current and long-term

$

7,479.0

$

7,519.1

Cash and cash equivalents

(410.0)

(591.9)

Net debt

$

7,069.0

$

6,927.2

Media

Investors

Troy Kirkpatrick

David DeMartino

614-284-1926

646-531-6115

[email protected]

[email protected]

Kirsten Fallon

Zach Weiner

781-779-5561

908-591-6955

[email protected]

[email protected]

SOURCE Zimmer Biomet Holdings, Inc.