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MarketBeat Week in Review – 04/27 - 05/01MaxLinear NASDAQ: MXL reported a sharp increase in second-quarter 2026 revenue and returned to GAAP profitability, as executives said demand for the company’s data center optical products is driving a new growth phase.

On the company’s earnings call, Chief Executive Officer Kishore Seendripu said MaxLinear’s overall revenue grew 55% year over year, reflecting “strong execution” and accelerating adoption of its newest data center products. He said infrastructure has become MaxLinear’s largest revenue category, with revenue in that segment rising 145% year over year, driven by production ramps in optical platforms for data centers.

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MaxLinear’s Explosive 200% Rally Looks Impressive—But Can It Last?“Our Q2 financial results highlight the exciting inflection in our business trajectory and the beginning of a multiyear growth phase for MaxLinear,” Seendripu said.

Revenue rises 55%, infrastructure becomes largest category Chief Financial Officer and Chief Corporate Strategy Officer Steve Litchfield said total revenue for the second quarter was $168.8 million, up 23% from $137.2 million in the prior quarter and up 55% from $108.8 million in the second quarter of 2025.

Silicon Motion: The Market's Best Merger Arbitrage OpportunityBy end market, Litchfield said second-quarter revenue was approximately:

Infrastructure: $85 million Broadband: $45 million Connectivity: $24 million Industrial and multi-market: $15 million GAAP gross margin was 57.8%, while non-GAAP gross margin was 59.5%. Litchfield said the difference between GAAP and non-GAAP gross margin was primarily due to $2.5 million of acquisition-related intangible asset amortization.

GAAP operating expenses were $101.8 million, compared with non-GAAP operating expenses of $62.8 million. The difference was primarily tied to stock-based compensation and performance-based equity accruals totaling $36.5 million, along with $2.2 million in acquisition-related and other costs.

MaxLinear reported GAAP earnings per share of $0.02 for the quarter, which Litchfield said marked a return to GAAP profitability. Non-GAAP earnings per share were $0.35. Operating cash flow was approximately $4.8 million, and the company ended the quarter with about $93.7 million in cash equivalents and restricted cash.

Optical data center outlook raised again Seendripu said MaxLinear is raising its expectations for 2026 optical data center revenue to a range of $210 million to $230 million, citing customer orders and stronger visibility into program ramps. He said run rates are expected to expand into 2027.

The company’s Keystone product, a 100 gigabit-per-lane, five-nanometer CMOS PAM4 DSP and SerDes technology, is ramping into high-volume production at major hyperscale customers in the U.S. and Asia for 400G and 800G deployments, Seendripu said. He said Keystone delivers “almost 40% lower consumption in power than competition” and is serving as the foundation for future customer engagements involving 1.6 terabit and 3.2 terabit architectures.

During the question-and-answer session, Seendripu said the company began the year with revenue more concentrated in 400G, but the current growth is being driven by 800G PAM4 products. He said 800G is expected to become a substantially larger portion of run-rate revenue going forward.

Asked whether the increase in the 2026 optical outlook was tied entirely to Keystone, Seendripu told Cody Acree of The Benchmark Company that it was “all driven by Keystone product family” and did not include 2026 revenue from Washington or Annapurna.

Next-generation products expected to contribute in 2027 Seendripu highlighted several products intended to extend MaxLinear’s data center portfolio. Rushmore, the company’s 1.6 terabit optical PAM4 DSP at 200 gigabit-per-lane speeds, is expected to become an important optical connectivity growth driver beginning in 2027, he said.

Washington, a standalone 200 gigabit-per-lane TIA platform, can be paired with Rushmore or deployed in LPO and NPO implementations that do not require a DSP. Annapurna, a 200 gigabit-per-lane Ethernet retimer platform, is aimed at 1.6 terabit active electrical cable and onboard retimer requirements for AI systems.

Seendripu said Rushmore, Washington and Annapurna are sampling and in customer qualification and design processes. He said the company expects revenue to begin in 2027, with one or two opportunities potentially starting in the second half of that year and layering into 2028 and 2029.

Beyond optical, Seendripu said MaxLinear’s first XGS-PON hyperscaler design win for dedicated data center control plane architectures has completed qualification for a 2027 ramp. He also said the company has secured USB bridge controller design wins at two major hyperscalers for AI rack management.

Broadband and connectivity grow; industrial recovery continues Seendripu said broadband and connectivity revenue both increased in the second quarter, supported by large-scale deployments of single-chip fiber PON and Wi-Fi 7 gateway platforms at major Tier 1 service providers in North America and Europe. He said MaxLinear is also in the early stages of Ultra DOCSIS 3.1 and 4.0 deployments, which are expected to provide additional stability as ramps progress through 2027 and 2028.

In response to a question from Wells Fargo analyst Joe Quattrocchi, Litchfield said there had not been significant changes in broadband demand trends. He said MaxLinear has been gaining share in PON programs and that telco capital spending remains “good.”

On the industrial and multi-market business, Litchfield told Karl Ackerman of BNP Paribas that the segment has been recovering after a weak prior year. He said the company is seeing year-over-year improvement and expects pricing, including in China, as well as new products to contribute to growth.

Third-quarter guidance points to further growth For the third quarter of 2026, MaxLinear expects revenue of $210 million to $220 million. Litchfield said the company expects growth across all four business segments, with particular strength in infrastructure from data center optical interconnects.

The company guided for GAAP gross margin of approximately 57% to 60% and non-GAAP gross margin of 58.5% to 61.5%. GAAP operating expenses are expected to be $98 million to $104 million, while non-GAAP operating expenses are expected to be $66 million to $71 million.

Litchfield said infrastructure products historically have carried gross margins above the corporate average, helping support the outlook. He also noted cost increases in wafers, packaging and testing, saying the company is being cautious but sees continued margin improvement potential.

Asked about longer-term profitability, Litchfield said MaxLinear’s target has not changed and that the company’s long-term goal is to reach operating margins of 30% to 35%. He said the business is “headed in that direction,” though he declined to guide beyond the current quarter.

Litchfield said visibility is strong across most of MaxLinear’s businesses, extending to about six months, supported by backlog and demand. The company has also made wafer prepayments to secure supply for rising data center product demand, which executives said is backed by customer orders extending into the second half of 2026 and 2027.

About MaxLinear (NASDAQ:MXL)MaxLinear, Inc is a provider of radio-frequency (RF), analog, and mixed-signal integrated circuits for broadband communications, data center connectivity, and video infrastructure applications. The company's product portfolio includes high-performance RF front-end modules, broadband power amplifiers, optical and Ethernet transceivers, and network processors designed to support demanding signal processing requirements.

MaxLinear's semiconductor solutions are used by cable and satellite television operators, fiber-to-the-home service providers, network equipment manufacturers, and data center operators.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Does Delta's Descent To Its 50-Day Line Offer A Buy Opportunity? SkyWest NASDAQ: SKYW reported second-quarter 2026 net income of $101 million, or $2.54 per diluted share, as stronger flying demand helped offset higher fuel costs in its prorate business, executives said on the company’s earnings call.

President and Chief Executive Officer Chip Childs said the quarter reflected increased block hours and “very strong demand both in our contract and pro-rate flying despite a higher fuel cost.” He said demand allowed the company to offset about 60% of the fuel impact in the fare portion of its prorate business.

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During the quarter, SkyWest operated nearly 228,000 flights and delivered a 99.9% adjusted completion rate, Childs said. Executives also emphasized the company’s fleet growth plans, including a new agreement with American Airlines for 11 Embraer E175 aircraft, and a $250 million increase to SkyWest’s existing stock repurchase authorization.

Revenue rises as block hours increase Chief Financial Officer Robert Simmons said SkyWest generated second-quarter GAAP pre-tax income of $139 million, up 29% from the first quarter. Total revenue was $1.1 billion, up 9% from the first quarter of 2026 and up 7% from the second quarter of 2025.

Second-quarter revenue included $864 million of contract revenue, $201 million of prorate and charter revenue, and $38 million of leasing and other revenue. Simmons said the results included $27 million of previously deferred revenue recognized during the quarter. SkyWest ended the quarter with $214 million of cumulative deferred revenue to be recognized in future periods.

Fuel costs were a major headwind for the prorate business. Simmons said prorate fuel expense was $61 million in the second quarter, compared with $28 million in the year-earlier period. The $33 million increase reflected both higher fuel prices and increased prorate production. SkyWest’s prorate fuel price was $4.45 per gallon in the second quarter, up from $2.88 in the second quarter of 2025 and $3.40 in the first quarter of 2026.

For the full year, Simmons said SkyWest expects block hour production to rise approximately 5% from 2025. The company anticipates GAAP earnings per share “in the $11 area” for 2026, subject to continued prorate fuel volatility. That outlook assumes an average jet fuel price of $3.65 per gallon for the second half of 2026 and 28 million gallons needed for the prorate business during that period.

American deal adds to E175 growth plan SkyWest announced an agreement with American Airlines for 11 new E175s, with deliveries scheduled in 2026 and 2027. Wade Steel, president and chief operating officer of SkyWest Airlines, said the aircraft are expected to replace 11 CRJ700s currently flown under contract with American.

Steel said SkyWest expects to place those CRJ700s with one of its major partners through prorate agreements, capacity purchase agreements or traditional leases. He added that some could potentially be converted to CRJ550s for partners.

SkyWest is scheduled to purchase the 11 E175s from Embraer. Four of the American aircraft are expected near the end of the fourth quarter of 2026, while the remaining seven are heavily weighted toward the first half of 2027, Steel said during the question-and-answer session.

The company currently has 67 future E175s on firm order with Embraer, including 16 for Delta, 11 for American and seven for United. Steel said 34 of those aircraft are allocated to major partners, while 33 are not yet assigned. He said the order locks in delivery slots from 2027 through 2032, but includes flexibility to defer or terminate aircraft if SkyWest does not arrange for a partner to take them.

With the American agreement, SkyWest’s E175 fleet is scheduled to reach 300 aircraft by the end of 2027, continuing its position as the largest E175 operator in the world, Steel said.

CRJ conversions and prorate flying remain priorities Executives highlighted ongoing efforts to transition toward an all dual-class fleet. Steel said SkyWest is preparing to deploy the CRJ450 for United later this year and expects to convert four to six aircraft per month beginning this fall. The company expects to have 40 CRJ450s under contract with United and sees the opportunity potentially reaching 100 aircraft.

SkyWest also continues to convert CRJ700s into CRJ550s. Steel said 36 CRJ550s were in service as of June 30, with the remaining 14 under a 50-aircraft United agreement expected to enter service this year.

In prorate flying, Steel said demand remains “extremely strong,” supported by community engagement. SkyWest added 10 aircraft to prorate agreements during the quarter and is continuing to evaluate opportunities to restore service to underserved communities. The company is also operating eight aircraft under a reinitiated prorate agreement with American, with up to nine expected by year-end.

Childs said the company continues to see strong demand even as seasonal trends point to some fall moderation. He also said the shift toward an all dual-class fleet should support the company’s long-term prorate strategy.

Balance sheet, buybacks and capital spending SkyWest ended the quarter with $601 million in cash, down slightly from $627 million in the prior quarter. Simmons said the ending cash balance reflected $122 million of debt repayments, $24 million of new debt financing for fleet deliveries, $139 million in capital expenditures, and $75 million of share repurchases.

The company repurchased 833,000 shares during the second quarter and had $63 million remaining under its existing authorization as of June 30. Simmons said the board approved an additional $250 million for share repurchases.

Simmons said SkyWest generated more than $460 million of EBITDA in the first half of 2026, despite the fuel cost headwind. Since the end of 2025, the company reduced total debt by approximately $100 million, invested more than $240 million in fleet-related capital expenditures and repurchased $150 million of shares.

For 2026, SkyWest expects approximately $700 million of capital expenditures. Simmons said about half of that amount relates to new E175 deliveries. The company expects to finance 11 new E175s this year, but still expects debt to trend lower over the next several years.

Executives said the company plans to continue allocating free cash flow across fleet investment, debt reduction and opportunistic share repurchases. Simmons said SkyWest expects to have more than 100 unencumbered E175s by the end of 2029.

Analysts focus on fuel, fleet placement and 2027 growth During the question-and-answer portion of the call, analysts asked about the impact of fuel volatility on the prorate business. Childs said the company is in a “more stable position” than earlier in the year and continues to have constructive conversations with partners.

Analysts also pressed for details on the placement of aircraft returning from American and from third-party leases. Steel said SkyWest is in discussions with major partners about placing the aircraft in contract, prorate or leasing arrangements. He described contract economics as consistent with existing agreements, while leasing can have higher margin attributes and prorate margins remain more variable.

Asked about 2027 block hour growth, Steel said the company is still finalizing its plans and expects to provide more detail next quarter.

About SkyWest (NASDAQ:SKYW)SkyWest, Inc NASDAQ: SKYW is a regional airline holding company that provides air transportation services through its primary subsidiary, SkyWest Airlines. The company operates flights under capacity purchase agreements with major carriers such as United Airlines, Delta Air Lines, American Airlines and Alaska Airlines. By specializing in regional connectivity, SkyWest links smaller communities to larger hubs using a fleet of regional jets and turboprop aircraft.

Headquartered in St. George, Utah, SkyWest oversees all aspects of its airline operations, including flight scheduling, crew training and aircraft maintenance.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways Centrus Energy offers operating revenues, fuel services and a $3.9B backlog extending through 2040.LEU's 2026 revenue guidance rose to $450-$500M, while a $900M DOE award could support expansion.LEU trades at 7.09X forward sales versus SMR's 26.83X and remains profitable through 2027. Nuclear power is moving back into the investment spotlight as electricity demand rises, grids face reliability pressure and governments push for more domestic energy security. NuScale Power (SMR - Free Report) and Centrus Energy (LEU - Free Report) offer very different ways to gain exposure. NuScale is trying to commercialize small modular reactors, while Centrus supplies enriched uranium and related nuclear-fuel services. The key question is which business has clearer near-term support.

The Case for SMR StockNuScale’s main strength is its regulatory lead. Its 50-megawatt and 77-megawatt reactor designs have received U.S. Nuclear Regulatory Commission approvals, giving customers a more defined licensing path than many competing advanced-reactor concepts. The modules use commercially available low-enriched uranium, rely on passive safety features and can be factory-built for phased deployment. NuScale also promotes behind-the-meter power for data centers and industrial sites, which could reduce dependence on crowded transmission systems.

ENTRA1 Energy, NuScale’s exclusive commercialization partner, is working with the Tennessee Valley Authority on a potential program of up to 6 gigawatts. Romania’s RoPower project has also moved forward, with its next pre-construction engineering phase expected to last about 15 months once financing is secured. Partnerships with Framatome and Doosan Enerbility improve fuel and manufacturing readiness, while liquidity of roughly $1 billion at the end of March provides room to keep preparing for deployment.

Yet the gap between technical readiness and commercial success remains wide. First-quarter revenues were only about $0.6 million, and reactor sales have not yet produced a steady revenue base. Major projects still depend on financing, firm customer commitments, permits and long construction schedules. NuScale has also used its at-the-market program, showing that dilution can remain part of the funding picture. The stock therefore rests heavily on future contracts rather than current operating strength.

The Case for LEU StockCentrus has a more established business because it already sells low-enriched uranium and provides technical services. It is also the only U.S. company with proven, licensed technology for producing high-assay low-enriched uranium, or HALEU, outside Russia, placing it in a key part of the Western nuclear supply chain. That position matters as utilities seek alternatives to Russian enrichment and reactor developers look for secure domestic fuel.

Its backlog offers much better visibility than NuScale’s project pipeline. Centrus ended the first quarter with $3.9 billion of backlog extending through 2040, including $2.4 billion of contingent LEU enrichment commitments under definitive agreements. Management also raised its 2026 revenue guidance to $450-$500 million. A $900 million Department of Energy HALEU award, still subject to final negotiations, could further support its expansion.

Centrus is investing heavily in its Piketon and Oak Ridge buildout, with planned 2026 capital deployment of $350-$500 million. Partnerships with Fluor and Palantir are intended to shorten lead times and control costs, and management has identified about $300 million in potential savings. Still, expansion execution, government funding, customer concentration and uranium-market swings remain real risks. Earnings can vary sharply because delivery volumes and contract mix are uneven. Even so, Centrus already generates meaningful revenues, holds a large cash balance and operates in a supply-constrained market.

Price PerformanceThe market has punished both stocks, but not equally. LEU is down 28.2% year to date, while SMR has fallen 38.8%. The sharper decline reflects greater concern around NuScale’s commercialization timing, revenue visibility and funding needs. Centrus has also faced volatility, yet its existing operations and backlog give investors more evidence to value.

Image Source: Zacks Investment Research

ValuationFrom a valuation standpoint, Centrus Energy appears considerably cheaper. Based on the forward price-to-sales ratio, SMR is trading at 26.83X, while LEU trades at 7.09X. Such a wide valuation gap suggests that investors are assigning a much larger premium to NuScale's future commercialization potential despite its limited current revenues. Centrus, on the other hand, offers a more established operating business, meaningful backlog and stronger revenue visibility at a significantly lower valuation multiple, making LEU look more attractive on this metric.

Image Source: Zacks Investment Research

Earnings EstimatesThe earnings outlook presents a mixed picture. The Zacks Consensus Estimate for Centrus Energy’s 2026 earnings is $2.70 per share, indicating a 30.8% decline from 2025. However, the estimate rises to $2.80 per share in 2027, representing a modest 3.5% improvement from 2026 and suggesting that earnings may begin stabilizing after the expected decline.

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For NuScale, the consensus estimate calls for a loss of 46 cents per share in 2026, marking a 78.8% improvement from 2025. Yet the projected loss widens to 83 cents per share in 2027, reflecting a 79.3% deterioration from 2026.

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Thus, while NuScale is expected to reduce losses sharply in 2026, the renewed decline projected for 2027 weakens its earnings visibility. LEU remains profitable across both years, giving it the stronger overall earnings profile.

ConclusionBoth companies could benefit from the nuclear revival, but they offer different risk profiles. NuScale Power has valuable technology and a large long-term opportunity, yet investors are still waiting for binding orders and dependable revenues. Centrus Energy combines strategic fuel exposure with operating income, backlog and government support. LEU carries a Zacks Rank #3 (Hold) and is therefore better placed than SMR, with a Zacks Rank #4 (Sell), at the moment.

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

Raises 2026 Core FFO per share guidance

Announces portfolio realignment through planned 2026 dispositions of $1.5-$2.0 billion

, /PRNewswire/ -- Rexford Industrial Realty, Inc. (the "Company" or "Rexford Industrial") (NYSE: REXR), a real estate investment trust ("REIT") focused on creating value by investing in and operating industrial properties throughout infill Southern California, today announced financial and operating results for the second quarter of 2026.

Second Quarter 2026 Financial and Operational Highlights (all comparisons to Second Quarter 2025)

Net loss attributable to common stockholders of $506.9 million, or $2.26 per diluted share, driven by non-cash impairment, as compared to net income of $113.4 million, or $0.48 per diluted share. Company share of Core FFO of $141.4 million, an increase of 1.2%. Company share of Core FFO per diluted share of $0.63, an increase of 6.8%. Total Portfolio NOI of $186.8 million, an increase of 0.3%. Same Property Portfolio Cash NOI increased 1.5% and Same Property Portfolio NOI decreased 0.5%. Average Same Property Portfolio occupancy of 95.7%. Executed 2.1 million square feet of new and renewal leases. Comparable rental rates decreased by 2.8%, compared to prior rents, on a net effective basis and decreased by 11.3% on a cash basis. Stabilized two development projects totaling 196,391 square feet. Sold seven properties for a total sales price of $137.9 million. Company increased its full-year 2026 disposition guidance to $1.5 to $2.0 billion as part of its planned portfolio realignment. Repurchased 2,801,307 shares of common stock for $100 million at a weighted average price of $35.70 per share. Subsequent to quarter end, the Board of Directors authorized a new, $1.0 billion stock repurchase program. Net Debt to Adjusted EBITDAre of 4.5x. "This quarter reflects both strong execution and a transformative step forward in advancing our strategic priorities," said Laura Clark, Chief Executive Officer. "The realignment of our portfolio through the planned disposition of approximately $2 billion of identified non-core assets will further strengthen our portfolio, enhance cash flow durability and increase financial flexibility, positioning Rexford to maximize long-term shareholder value. We are also encouraged by the continued improvement we are seeing in fundamentals across the infill Southern California industrial market, including increasing tenant demand, positive net absorption and declining vacancy—all early signs of strengthening market conditions. We are confident that our strategic actions, combined with the strength of our value creation platform, will enable Rexford to deliver outsized returns for shareholders moving forward."

Financial

The Company reported net loss attributable to common stockholders for the second quarter of $506.9 million, or $2.26 per diluted share, compared to net income of $113.4 million, or $0.48 per diluted share, in the prior year quarter. Net loss in the second quarter includes $624.8 million of impairments and $21.9 million of gains on sale of real estate, as compared to $0 and $44.4 million, respectively, for the prior year quarter. The non-cash impairments primarily reflect certain assets designated for disposition whose expected holding periods were shortened in connection with the Company's increased disposition guidance. For the six months ended June 30, 2026, net loss attributable to common stockholders was $419.0 million, or $1.86 per diluted share, compared to net income of $181.8 million, or $0.78 per diluted share, in the prior year period. Net loss in the six months ended June 30, 2026 includes $631.6 million of impairments and $48.2 million of gains on sale of real estate, as compared to $0 and $57.5 million, respectively, for the prior year period.

The Company reported its share of Core FFO for the second quarter of $141.4 million, representing a 1.2% increase, compared to $139.7 million for the prior year quarter. The Company reported Core FFO of $0.63 per diluted share, representing an increase of 6.8%, compared to $0.59 per diluted share for the prior year quarter. Company share of Core FFO increased by $1.7 million, or $0.04 per diluted share year-over-year, driven by lower general and administrative expense related to the CEO leadership transition and the benefit of share repurchases, partially offset by lower NOI from dispositions executed in the first half of 2026. For the six months ended June 30, 2026, the Company's share of Core FFO was $281.2 million, representing a 0.2% increase, compared to $280.7 million for the prior year period. For the six months ended June 30, 2026, the Company reported Core FFO of $1.24 per diluted share, representing an increase of 2.5%, compared to $1.21 per diluted share for the prior year period.

In the second quarter of 2026, the Company's Same Property Portfolio NOI and Cash NOI decreased 0.5% and increased 1.5%, respectively, compared to the prior year quarter. Same Property Portfolio NOI decrease was primarily driven by effective rental rate compression and higher bad debt, partially offset by higher average occupancy. Same Property Portfolio Cash NOI growth was positively driven by annual contractual rent increases and higher average occupancy, partially offset by higher bad debt. For the six months ended June 30, 2026, the Company's Same Property Portfolio NOI and Cash NOI increased 0.3% and 0.6%, respectively, compared to the prior year period.

Operations

Q2 2026 Leasing Activity

Releasing Spreads(1)

# of Leases
Executed

SF of

Leasing

Net

Effective

Cash

New Leases

53

840,344

(13.8) %

(19.5) %

Renewal Leases

64

1,261,446

1.4 %

(8.1) %

Total Leases

117

2,101,790

(2.8) %

(11.3) %

(1)

Net effective and cash rent statistics include leases in which there is comparable lease data. Please see the Company's supplemental financial reporting package for additional detail related to leasing activity in Q2 2026.

As of June 30, 2026, the Company's Same Property Portfolio occupancy was 95.1%. Average Same Property Portfolio occupancy for the second quarter was 95.7%. The Company's total portfolio, excluding repositioning and development assets, was 94.8% occupied and 95.0% leased, and the Company's total portfolio, including repositioning and development assets, was 90.0% occupied and 90.3% leased. The Company's improved land and industrial outdoor storage (IOS) sites, totaling approximately 8.3 million square feet or 189.7 acres, were 92.8% leased as of June 30, 2026.

Repositionings and Developments

During the second quarter of 2026, the Company executed three development and repositioning leases totaling 146,430 square feet. Subsequent to quarter end, the Company executed two leases totaling 102,025 square feet at a development project located at 3680-3880 Voyager Street and a repositioning project located at 24935-24955 Avenue Kearny. Year to date through July 23, 2026, leasing activity across the Company's repositioning and development pipeline totals 286,299 square feet.

During the second quarter of 2026, the Company stabilized two development projects totaling 196,391 square feet, representing a total investment of $98.0 million. These projects achieved a weighted average unlevered stabilized return on cost of 8.0%.

Year to date, the Company stabilized four repositioning and development projects totaling 341,280 square feet, representing a total investment of $146.6 million. These projects achieved a weighted average unlevered stabilized return on cost of 7.1%.

Dispositions

During the second quarter of 2026, the Company disposed of seven properties, totaling 571,708 square feet, for an aggregate sales price of $137.9 million, including four sites previously in the near-term development pipeline.

Year to date, the Company disposed of twelve properties totaling 886,401 square feet for an aggregate sales price of $265.3 million, including six sites previously in the near-term development pipeline.

Balance Sheet

The Company ended the second quarter of 2026 with approximately $1.3 billion of total liquidity, including $32.2 million in unrestricted cash on hand and $1.2 billion available under its unsecured revolving credit facility.

During the second quarter of 2026, the Company repurchased 2,801,307 shares of its common stock for $100 million, at a weighted average price of $35.70 per share, bringing year-to-date repurchases to $300 million. Subsequent to quarter end, the Company's Board of Directors authorized a new $1.0 billion stock repurchase program, which superseded and replaced the prior program and is authorized through July 2028. The Company has full availability under the current program.

As of June 30, 2026, the Company had $3.3 billion of outstanding debt, with a weighted average interest rate of 3.7%. Floating-rate debt exposure was limited to $14.0 million outstanding under the Company's revolving credit facility. The weighted average term-to-maturity of the Company's outstanding debt is 2.8 years with no material debt maturities until 2027.

Dividends

On July 20, 2026, the Company's Board of Directors authorized a dividend in the amount of $0.435 per share for the third quarter of 2026, payable in cash on October 15, 2026, to common stockholders and common unit holders of record as of September 30, 2026.

On July 20, 2026, the Company's Board of Directors authorized a quarterly dividend of $0.367188 per share of its Series B Cumulative Redeemable Preferred Stock and a quarterly dividend of $0.351563 per share of its Series C Cumulative Redeemable Preferred Stock, payable in cash on September 30, 2026, to preferred stockholders of record as of September 15, 2026.

Leadership Transition and Board of Directors

On April 1, 2026, Laura Clark assumed the role of Chief Executive Officer and John Nahas assumed the role of Chief Operating Officer as part of the Company's leadership succession plan. Clark, who was appointed to the Board on November 17, 2025, succeeded Co-Chief Executive Officers Howard Schwimmer and Michael Frankel, who departed from their roles on March 31, 2026. Schwimmer and Frankel continued to serve as directors on the Board until their terms expired at the 2026 Annual Meeting of Shareholders on May 19, 2026.

Guidance

The Company is updating its full year 2026 guidance as indicated below. Please refer to the Company's supplemental information package for a complete detail of guidance and the 2026 Guidance Rollforward.

The Company is announcing a disposition initiative to realign its portfolio through the planned sale of approximately $2 billion of identified non-core assets. The Company intends to recycle proceeds to increase its financial flexibility through the strengthening of its balance sheet as well as deployment toward the highest risk-adjusted return opportunities, including accretive share repurchases. Accordingly, the Company has increased its full year 2026 disposition guidance to $1.5 to $2.0 billion from $400 to $500 million.

2026 Outlook

Q2 2026

Updated Guidance

Q1 2026
Guidance

Earnings

Net (Loss) Income Attributable to Common Stockholders per diluted share(1)

($1.32) - ($1.27)

$1.22 - $1.27

Company share of Core FFO per diluted share(1)

$2.38 - $2.43

$2.37 - $2.42

Same Property Portfolio(2)

Same Property Portfolio NOI Growth - Net Effective

(1.25)% - (0.25)%

(2.0)% - (1.0)%

Same Property Portfolio NOI Growth - Cash

(0.75)% - 0.25%

(1.5)% - (0.5)%

Average Same Property Portfolio Occupancy (Full Year)

95.3% - 95.7%

95.1% - 95.6%

Capital Allocation

Dispositions

$1.5B - $2.0B

$400M - $500M

Repositioning/Development Annualized Stabilized Cash NOI(3)

$16M - $18M

$16M - $18M

Repositioning/Development Starts (SF)

1.2M

1.2M

Repositioning/Development Starts (Total Estimated Project Costs)

$160M - $170M

$160M - $170M

Other Assumptions

General and Administrative Expenses

+/-$57M

+/-$60M

Interest Expense

+/-$105M

+/-$112M

(1)

2026 Net Loss and Core FFO Guidance reflects the Company's in-place portfolio as of July 23, 2026, as well as guidance expectations related to investment activity.

(2)

2026 Same Property Portfolio is a subset of our consolidated portfolio and includes properties that were wholly owned for the period from January 1, 2025 through July 23, 2026, and excludes properties that were or will be classified as repositioning or development (current and future) or lease-up during 2025 and 2026 (unless otherwise noted), select buildings in other repositioning and properties included in the 2026 disposition guidance.

(3)

Represents estimated annualized Cash NOI for repositioning and development projects expected to stabilize in  2026, including 1315 Storm Parkway and 12118 Bloomfield Avenue, which stabilized in the first quarter, and 3211-3233 Mission Oaks Boulevard and 19900 Plummer Street, which stabilized in the second quarter.

A number of factors could impact the Company's ability to deliver results in line with its guidance, including, but not limited to, the potential impacts related to interest rates, inflation, the economy, tariffs, geopolitical risks including impacts from the war in the Middle East, the supply and demand of industrial real estate, the availability and terms of financing to the Company or to potential acquirers of real estate and the timing and yields for divestment and investment. There can be no assurance that the Company can achieve such results.

Supplemental Information and Earnings Presentation

The Company's supplemental information package as well as an earnings presentation are available on the Company's investor relations website at ir.rexfordindustrial.com.

Earnings Release, Investor Conference Webcast and Conference Call

A conference call with executive management will be held on Friday, July 24, 2026, at 11:00 a.m. Eastern Time.

To participate in the live telephone conference call, please access the following dial-in numbers at least five minutes prior to the start time using Meeting ID 401 760 274.
          1 (585) 542-9983 (Local)
          1 (833) 461-5787 (Toll-Free)

A live webcast and replay of the conference call will also be available at ir.rexfordindustrial.com.

About Rexford Industrial

Rexford Industrial creates value by investing in, operating and repositioning industrial properties throughout infill Southern California, the world's fourth largest industrial market and consistently the highest-demand with lowest-supply major market in the nation over the long term. The Company's highly differentiated strategy enables internal and external growth opportunities through its proprietary value creation and asset management capabilities. As of June 30, 2026, Rexford Industrial's high-quality, irreplaceable portfolio comprised 409 properties with approximately 49.9 million rentable square feet occupied by a stable and diverse tenant base. Structured as a real estate investment trust (REIT) listed on the New York Stock Exchange under the ticker "REXR," Rexford Industrial is an S&P MidCap 400 Index member. For more information, please visit rexfordindustrial.com.

Forward Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. While forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, they are not guarantees of future performance. In addition, projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described above. These and other factors could cause results to differ materially from those expressed in our estimates and beliefs and in the estimates prepared by independent parties. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the reports and other filings by the Company with the U.S. Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2025, and other filings with the Securities and Exchange Commission. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes.

Definitions / Discussion of Non-GAAP Financial Measures

Funds from Operations (FFO): We calculate FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). FFO represents net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from sales of depreciable operating property, gains (or losses) from sales of assets incidental to our business, impairment losses of depreciable operating property or assets incidental to our business, real estate related depreciation and amortization (excluding amortization of deferred financing costs and amortization of above/below-market lease intangibles) and after adjustments for unconsolidated joint ventures. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization, gains and losses from property dispositions, other than temporary impairments of unconsolidated real estate entities, and impairment on our investment in real estate, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of performance used by other REITs, FFO may be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effects and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. Other equity REITs may not calculate or interpret FFO in accordance with the NAREIT definition as we do, and, accordingly, our FFO may not be comparable to such other REITs' FFO. FFO should not be used as a measure of our liquidity and is not indicative of funds available for our cash needs, including our ability to pay dividends. FFO should be considered only as a supplement to net income or loss computed in accordance with GAAP as a measure of our performance. A reconciliation of net income or loss, the nearest GAAP equivalent, to FFO is set forth below in the Financial Statements and Reconciliations section. "Company Share of FFO" reflects FFO attributable to common stockholders, which excludes amounts allocable to noncontrolling interests, participating securities and preferred stockholders.

Core Funds from Operations (Core FFO): We calculate Core FFO by adjusting FFO for non-comparable items outlined in the "Reconciliation of Net (Loss) Income to Funds From Operations and Core Funds From Operations" table, which is located in the Financial Statements and Reconciliations section below. We believe that Core FFO is a useful supplemental measure and that by adjusting for items that are not considered by the Company to be part of its on-going operating performance, provides a more meaningful and consistent comparison of the Company's operating and financial performance period-over-period. Because these adjustments have a real economic impact on our financial condition and results from operations, the utility of Core FFO as a measure of our performance is limited. Other REITs may not calculate Core FFO in a consistent manner. Accordingly, our Core FFO may not be comparable to other REITs' Core FFO. Core FFO should be considered only as a supplement to net income or loss computed in accordance with GAAP as a measure of our performance. "Company Share of Core FFO" reflects Core FFO attributable to common stockholders, which excludes amounts allocable to noncontrolling interests, participating securities and preferred stockholders.

Reconciliation of Net Loss Attributable to Common Stockholders per Diluted Share Guidance to Company Share of Core FFO per Diluted Share Guidance:

The following is a reconciliation of the Company's 2026 guidance range of net income attributable to common stockholders per diluted share, the most directly comparable forward-looking GAAP financial measure, to Company share of Core FFO per diluted share.

2026 Estimate

Low

High

Net loss attributable to common stockholders

$                 (1.32)

$                 (1.27)

Company share of depreciation and amortization

1.21

1.21

Company share of impairment of real estate

2.71

2.71

Company share of gains on sale of real estate

(0.21)

(0.21)

Company share of FFO

$                  2.39

$                  2.44

Add: Core FFO adjustments(1)

(0.01)

(0.01)

Company share of Core FFO

$                  2.38

$                  2.43

(1)

Core FFO adjustments consist of (i) Co-CEO transition costs, (ii) severance costs, (iii) other nonrecurring expenses and (iv) write-offs of below-market lease intangibles related to unexercised renewal options.

Net Operating Income (NOI): NOI is a non-GAAP measure, which includes the revenue and expense directly attributable to our real estate properties. NOI is calculated as rental income from real estate operations less property expenses (before interest expense, depreciation and amortization). We use NOI as a supplemental performance measure because, in excluding real estate depreciation and amortization expense, gains (or losses) from property dispositions, impairment losses of depreciable operating property and other non-operating items, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that NOI will be useful to investors as a basis to compare our operating performance with that of other REITs. However, because NOI excludes depreciation and amortization expense and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties (all of which have a real economic effect and could materially impact our results from operations), the utility of NOI as a measure of our performance is limited. Other equity REITs may not calculate NOI in a similar manner and, accordingly, our NOI may not be comparable to such other REITs' NOI. Accordingly, NOI should be considered only as a supplement to net income or loss as a measure of our performance. NOI should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs.

NOI should not be used as a substitute for cash flow from operating activities in accordance with GAAP. We use NOI to help evaluate the performance of the Company as a whole, as well as the performance of our Same Property Portfolio. A calculation of NOI for our Same Property Portfolio, as well as a reconciliation of net income or loss to NOI for our Same Property Portfolio, is set forth below in the Financial Statements and Reconciliations section.

Cash NOI: Cash NOI is a non-GAAP measure, which we calculate by adding or subtracting from NOI: (i) amortization of above/(below) market lease intangibles and amortization of other deferred rent resulting from sale leaseback transactions with below market leaseback payments and (ii) straight-line rent adjustments. We use Cash NOI, together with NOI, as a supplemental performance measure. Cash NOI should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs. Cash NOI should not be used as a substitute for cash flow from operating activities computed in accordance with GAAP. We use Cash NOI to help evaluate the performance of the Company as a whole, as well as the performance of our Same Property Portfolio. A calculation of Cash NOI for our Same Property Portfolio, as well as a reconciliation of net income or loss to Cash NOI for our Same Property Portfolio, is set forth below in the Financial Statements and Reconciliations section.

Same Property Portfolio: Our 2026 Same Property Portfolio is a subset of our total portfolio and includes properties that were wholly owned by us for the period from January 1, 2025 through June 30, 2026, and excludes (i) properties that were acquired or sold during the period from January 1, 2025 through June 30, 2026, and (ii) properties acquired prior to January 1, 2025 that were classified as repositioning/development (current and future) or lease-up during 2025 and 2026 and select buildings in "Other Repositioning," which we believe will significantly affect the properties' results during the comparative periods. As of June 30, 2026, our 2026 Same Property Portfolio consisted of buildings aggregating 41.6 million rentable square feet at 341 of our properties.

Properties and Space Under Repositioning: Typically defined as properties or units where a significant amount of space is held vacant in order to implement capital improvements that improve the functionality (not including basic refurbishments, i.e., paint and carpet), cash flow and value of that space. A repositioning is generally considered complete once the investment is fully or nearly fully deployed and the property is available for occupancy.

Properties Under Development: Typically defined as properties where we plan to fully or partially demolish an existing building(s) due to building obsolescence and/or a property with excess or vacant land where we plan to construct a ground-up building.

Stabilization Date — Repositioning/Development Properties: We consider a repositioning/development property to be stabilized at the earlier of the following: (i) upon rent commencement and achieving 90% occupancy or (ii) one year from the date of completion of repositioning/development construction work.

Net Debt to Enterprise Value: As of June 30, 2026, we had consolidated indebtedness of $3.3 billion, reflecting a net debt to enterprise value of approximately 29.1%. Our enterprise value is defined as the sum of the liquidation preference of our outstanding preferred stock and preferred units plus the market value of our common stock excluding shares of nonvested restricted stock, plus the aggregate value of common units not owned by us, plus the value of our net debt. Our Net Debt is defined as our consolidated indebtedness less cash and cash equivalents.

Net Debt to Adjusted EBITDAre: Calculated as Net Debt divided by annualized Adjusted EBITDAre. We calculate Adjusted EBITDAre as net income or loss (computed in accordance with GAAP), before interest expense, tax expense, depreciation and amortization, gains (or losses) from sales of depreciable operating property, impairment losses of depreciable property, non-cash stock-based compensation expense, write-offs of below market lease intangibles related to unexercised renewal options, acquisition expenses, the pro-forma effects of  dispositions and other nonrecurring expenses. We believe that Adjusted EBITDAre is helpful to investors as a supplemental measure of our operating performance as a real estate company because it is a direct measure of the actual operating results of our industrial properties. We also use this measure in ratios to compare our performance to that of our industry peers. In addition, we believe Adjusted EBITDAre is frequently used by securities analysts, investors and other interested parties in the evaluation of Equity REITs. However, because Adjusted EBITDAre is calculated before recurring cash charges including interest expense and income taxes, and is not adjusted for capital expenditures or other recurring cash requirements of our business, its utility as a measure of our liquidity is limited. Accordingly, Adjusted EBITDAre should not be considered an alternative to cash flow from operating activities (as computed in accordance with GAAP) as a measure of our liquidity. Adjusted EBITDAre should not be considered as an alternative to net income or loss as an indicator of our operating performance. Other Equity REITs may calculate Adjusted EBITDAre differently than we do; accordingly, our Adjusted EBITDAre may not be comparable to such other Equity REITs' Adjusted EBITDAre. Adjusted EBITDAre should be considered only as a supplement to net income or loss (as computed in accordance with GAAP) as a measure of our performance. A reconciliation of net income or loss, the nearest GAAP equivalent, to Adjusted EBITDAre is set forth below in the Financial Statements and Reconciliations section.

Contact

Doug Bettisworth
SVP, Investor Relations and Capital Markets
(310) 943-7157
[email protected]

Financial Statements and Reconciliations

Rexford Industrial Realty, Inc.

Consolidated Balance Sheets

(In thousands except share data)

June 30, 2026

December 31, 2025

(unaudited)

ASSETS

Land

$              7,104,413

$              7,689,921

Buildings and improvements

4,541,066

4,677,318

Tenant improvements

206,540

198,161

Furniture, fixtures, and equipment

132

132

Construction in progress

324,365

451,109

Total real estate held for investment

12,176,516

13,016,641

Accumulated depreciation

(1,163,226)

(1,165,792)

Investments in real estate, net

11,013,290

11,850,849

Cash and cash equivalents

32,226

165,778

Loan receivable, net

123,934

123,704

Rents and other receivables, net

12,132

13,958

Deferred rent receivable, net

210,474

190,376

Deferred leasing costs, net

90,864

87,745

Deferred loan costs, net

5,877

6,886

Acquired lease intangible assets, net

114,489

140,627

Acquired indefinite-lived intangible asset

5,156

5,156

Interest rate swap assets

9,247

2,025

Other assets

16,987

25,609

Total Assets

$            11,634,676

$            12,612,713

LIABILITIES & EQUITY

Liabilities

Notes payable

$              3,263,724

$              3,251,909

Interest rate swap liability

3

829

Accounts payable, accrued expenses and other liabilities

99,101

120,849

Dividends and distributions payable

100,960

103,399

Acquired lease intangible liabilities, net

105,856

116,487

Tenant security deposits

92,386

92,444

Tenant prepaid rents

79,518

88,777

Total Liabilities

3,741,548

3,774,694

Equity

Rexford Industrial Realty, Inc. stockholders' equity

Preferred stock, $0.01 par value per share, 10,050,000 shares authorized:

5.875% series B cumulative redeemable preferred stock, 3,000,000 shares outstanding at June 30, 2026
and December 31, 2025 ($75,000 liquidation preference)

72,443

72,443

5.625% series C cumulative redeemable preferred stock, 3,450,000 shares outstanding at June 30, 2026
and December 31, 2025 ($86,250 liquidation preference)

83,233

83,233

Common Stock,$0.01 par value per share, 489,950,000 authorized and 222,989,057 and 231,580,135
shares outstanding at June 30, 2026 and December 31, 2025, respectively

2,230

2,316

Additional paid in capital

8,631,341

8,945,123

Cumulative distributions in excess of earnings

(1,255,153)

(642,130)

Accumulated other comprehensive income (loss)

7,473

(422)

Total stockholders' equity

7,541,567

8,460,563

Noncontrolling interests

351,561

377,456

Total Equity

7,893,128

8,838,019

Total Liabilities and Equity

$            11,634,676

$            12,612,713

Rexford Industrial Realty, Inc.

Consolidated Statements of Operations

(Unaudited and in thousands, except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

REVENUES

Rental income

$       242,996

$       241,568

$       485,137

$       490,389

Management and leasing services

—

132

—

274

Interest income

2,510

7,807

5,447

11,131

TOTAL REVENUES

245,506

249,507

490,584

501,794

OPERATING EXPENSES

Property expenses

56,214

55,298

112,977

110,559

General and administrative

13,693

19,752

28,618

39,620

Depreciation and amortization

73,479

71,188

146,412

157,928

TOTAL OPERATING EXPENSES

143,386

146,238

288,007

308,107

OTHER (EXPENSES) INCOME

Other income

3,500

—

4,850

—

Other expenses, net

2,001

(244)

1,899

(2,483)

Interest expense

(28,571)

(26,701)

(55,171)

(53,989)

Impairment of real estate

(624,754)

—

(631,578)

—

Debt extinguishment and modification expenses

—

(291)

—

(291)

Gains on sale of real estate

21,893

44,361

48,174

57,518

TOTAL OTHER (EXPENSES) INCOME

(625,931)

17,125

(631,826)

755

NET (LOSS) INCOME

(523,811)

120,394

(429,249)

194,442

Less: net loss (income) attributable to noncontrolling interests

19,665

(4,060)

16,290

(6,909)

NET (LOSS) INCOME ATTRIBUTABLE TO REXFORD INDUSTRIAL REALTY, INC.

(504,146)

116,334

(412,959)

187,533

Less: preferred stock dividends

(2,315)

(2,315)

(4,629)

(4,629)

Less: earnings attributable to participating securities

(441)

(592)

(1,449)

(1,131)

NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS

$      (506,902)

$       113,427

$      (419,037)

$       181,773

Net (loss) income attributable to common stockholders per share – basic

$           (2.26)

$            0.48

$           (1.85)

$            0.78

Net (loss) income attributable to common stockholders per share – diluted

$           (2.26)

$            0.48

$           (1.86)

$            0.78

Weighted-average shares of common stock outstanding – basic

223,812

236,099

226,050

231,771

Weighted-average shares of common stock outstanding – diluted

223,812

236,099

234,636

231,771

Rexford Industrial Realty, Inc.

Same Property Portfolio Occupancy and NOI and Cash NOI

(Unaudited, dollars in thousands)

Same Property Portfolio Occupancy

June 30,

2026

2025

Change
(basis points)

Quarterly Weighted Average Occupancy:(1)

Los Angeles County

96.5 %

93.2 %

330 bps

Orange County

95.9 %

97.6 %

(170) bps

Riverside / San Bernardino County

93.3 %

97.0 %

(370) bps

San Diego County

97.5 %

98.0 %

(50) bps

Ventura County

94.6 %

91.4 %

320 bps

Same Property Portfolio Weighted Average Occupancy

95.7 %

94.7 %

100 bps

Ending Occupancy:

95.1 %

94.8 %

30 bps

(1)

Calculated by averaging the occupancy rate at the end of each month in 2Q-2026 and March 2026 (for 2Q-2026) and the end of each month in 2Q-2025 and March 2025 (for 2Q-2025).

Same Property Portfolio NOI and Cash NOI

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

$ Change

% Change

2026

2025

$ Change

% Change

Rental income(1)

$ 210,974

$ 210,887

$        87

0.0 %

$ 422,543

$ 418,561

$  3,982

1.0 %

Property expenses

46,811

45,893

918

2.0 %

94,045

91,171

2,874

3.2 %

Same Property Portfolio NOI

$ 164,163

$ 164,994

$     (831)

(0.5) %

$ 328,498

$ 327,390

$  1,108

0.3 %

Straight line rental revenue adjustment

(4,938)

(6,328)

1,390

(22.0) %

(15,235)

(13,835)

(1,400)

10.1 %

Above/(below) market lease revenue adjustments(1)

(3,093)

(4,829)

1,736

(35.9) %

(7,263)

(9,401)

2,138

(22.7) %

Same Property Portfolio Cash NOI

$ 156,132

$ 153,837

$   2,295

1.5 %

$ 306,000

$ 304,154

$  1,846

0.6 %

(1)

Same Property Portfolio rental income and above/(below) market lease revenue adjustments for the three months ended June 30, 2026 exclude $497 of income recognized from the write-off of a below-market lease intangibles attributable to below-market fixed rate renewal options that were not exercised upon expiration of the initial lease term.

Rexford Industrial Realty, Inc.

Reconciliation of Net (Loss) Income to NOI, Cash NOI, Same Property Portfolio NOI and

Same Property Portfolio Cash NOI

(Unaudited and in thousands)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net (loss) income

$     (523,811)

$       120,394

$     (429,249)

$       194,442

General and administrative

13,693

19,752

28,618

39,620

Depreciation and amortization

73,479

71,188

146,412

157,928

Other expenses, net

(2,001)

244

(1,899)

2,483

Interest expense

28,571

26,701

55,171

53,989

Debt extinguishment and modification expenses

—

291

—

291

Management and leasing services

—

(132)

—

(274)

Other income

(3,500)

—

(4,850)

—

Interest income

(2,510)

(7,807)

(5,447)

(11,131)

Impairment of real estate

624,754

—

631,578

—

Gains on sale of real estate

(21,893)

(44,361)

(48,174)

(57,518)

Net operating income (NOI)

$       186,782

$       186,270

$       372,160

$       379,830

Straight line rental revenue adjustment

(9,967)

(6,918)

(25,103)

(12,435)

Above/(below) market lease revenue adjustments

(3,805)

(5,788)

(8,452)

(14,974)

Cash NOI

$       173,010

$       173,564

$       338,605

$       352,421

NOI

$       186,782

$       186,270

$       372,160

$       379,830

Non-Same Property Portfolio rental income

(32,022)

(30,681)

(62,594)

(71,828)

Non-Same Property Portfolio property expenses

9,403

9,405

18,932

19,388

Same Property Portfolio NOI

$       164,163

$       164,994

$       328,498

$       327,390

Straight line rental revenue adjustment

(4,938)

(6,328)

(15,235)

(13,835)

Above/(below) market lease revenue adjustments

(3,093)

(4,829)

(7,263)

(9,401)

Same Property Portfolio Cash NOI

$       156,132

$       153,837

$       306,000

$       304,154

Rexford Industrial Realty, Inc.

Reconciliation of Net (Loss) Income to Funds From Operations and Core Funds From Operations

(Unaudited and in thousands, except per share data)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Net (loss) income

$    (523,811)

$     120,394

$    (429,249)

$     194,442

Adjustments:

Depreciation and amortization

73,479

71,188

146,412

157,928

Impairment of real estate

624,754

—

631,578

—

Gains on sale of real estate

(21,893)

(44,361)

(48,174)

(57,518)

Funds From Operations (FFO)

$     152,529

$     147,221

$     300,567

$     294,852

Less: preferred stock dividends

(2,315)

(2,315)

(4,629)

(4,629)

Less: FFO attributable to noncontrolling interests(1)

(5,726)

(4,962)

(11,008)

(10,356)

Less: FFO attributable to participating securities(2)

(680)

(728)

(2,114)

(1,478)

Company share of FFO

$     143,808

$     139,216

$     282,816

$     278,389

Company Share of FFO per common share – basic

$          0.64

$          0.59

$          1.25

$          1.20

Company Share of FFO per common share – diluted

$          0.64

$          0.59

$          1.25

$          1.20

FFO

$     152,529

$     147,221

$     300,567

$     294,852

Adjustments:

Acquisition expenses(3)

—

23

—

102

Debt extinguishment and modification expenses

—

291

—

291

Non-capitalizable demolition costs(3)

—

—

—

365

Co-CEO transition costs(3)(4)

(2,330)

—

(2,330)

—

Severance costs(3)(5)

269

199

269

1,682

Other nonrecurring expenses(3)(6)

45

—

107

—

Write-offs of below-market lease intangibles related to unexercised renewal options(7)

(497)

—

(497)

—

Core FFO

$     150,016

$     147,734

$     298,116

$     297,292

Less: preferred stock dividends

(2,315)

(2,315)

(4,629)

(4,629)

Less: Core FFO attributable to noncontrolling interest(1)

(5,631)

(4,979)

(10,915)

(10,440)

Less: Core FFO attributable to participating securities(2)

(668)

(731)

(1,412)

(1,491)

Company share of Core FFO

$     141,402

$     139,709

$     281,160

$     280,732

Company share of Core FFO per common share – basic

$          0.63

$          0.59

$          1.24

$          1.21

Company share of Core FFO per common share – diluted

$          0.63

$          0.59

$          1.24

$          1.21

Weighted-average shares of common stock outstanding – basic

223,812

236,099

226,050

231,771

Weighted-average shares of common stock outstanding – diluted

223,812

236,099

226,050

231,771

(1)

Noncontrolling interests relate to interests in the Company's operating partnership, represented by common units and preferred units (Series 2 & 3 CPOP units) of partnership interests in the operating partnership that are owned by unit holders other than the Company. On March 6, 2025, we exercised our conversion right to convert all remaining Series 2 CPOP units into OP Units.

(2)

Participating securities include unvested shares of restricted stock, unvested LTIP units and unvested performance units.

(3)

Amounts are included in the line item "Other expenses, net" in the consolidated statements of operations.

(4)

Reflects a decrease in share-based compensation expense related to updated estimates of Core FFO growth achievement for certain performance awards held by former Co-CEOs and employer payroll taxes associated with the vesting of transition-related restricted stock awards in April 2026.

(5)

Includes costs associated with workforce reduction and workforce reorganization.

(6)

Reflects nonrecurring advisory service costs.

(7)

Reflects the write-off of the portion of a below-market lease intangible attributable to below-market fixed rate renewal options that were not exercised upon expiration of the initial lease term.

Rexford Industrial Realty, Inc.

Reconciliation of Net Loss to Adjusted EBITDAre

(Unaudited and in thousands)

Three Months Ended
June 30, 2026

Net loss

$                     (523,811)

Interest expense

28,571

Depreciation and amortization

73,479

Impairment of real estate

624,754

Gains on sale of real estate

(21,893)

EBITDAre

$                      181,100

Stock-based compensation amortization

3,666

Write-offs of below-market lease intangibles related to unexercised renewal options(1)

(497)

Co-CEO transition costs(2)

(2,330)

Other nonrecurring expenses

45

Pro forma effect of dispositions(3)

68

Adjusted EBITDAre

$                      182,052

(1)

Reflects the write-off of the portion of a below-market lease intangible attributable to below-market fixed rate renewal options that were not exercised upon expiration of the initial lease term.

(2)

Reflects a decrease in share-based compensation expense related to updated estimates of Core FFO growth achievement for certain performance awards held by former Co-CEOs and payroll taxes associated with the vesting of transition-related restricted stock awards in April 2026.

(3)

Represents the impact on second quarter 2026 EBITDAre of properties disposed of during the quarter as if such dispositions had occurred on April 1, 2026.

SOURCE Rexford Industrial Realty, Inc.

4:15pm: Nasdaq closes deep in the red US stocks ended sharply lower on Thursday, with the Nasdaq leading the losses as investors dumped technology shares after earnings from Tesla and Alphabet failed to ease concerns about rising spending.

The Nasdaq fell 2.2% to 25,138, while the S&P 500 dropped 1.2% to 7,408. The Dow Jones Industrial Average shed 507 points, or 1%, to close at 51,712.

Despite reporting strong revenue growth, Tesla and Alphabet came under heavy selling pressure after both companies warned that capital expenditures are set to climb, raising fresh questions about profitability and free cash flow. The disappointing market reaction weighed on the broader technology and communications sectors, dragging the Nasdaq to its steepest decline in weeks.

Adding to the pressure, oil prices surged toward the $100-a-barrel mark as escalating conflict in the Middle East fueled fears of supply disruptions. The jump in crude prices reignited inflation concerns, pushing Treasury yields to their highest levels of the year and further denting appetite for growth stocks.

Investors are increasingly worried that higher energy prices could complicate the Federal Reserve's path on interest rates, particularly if inflation proves more persistent than expected.

Attention now turns to Intel, which is set to report quarterly earnings after the closing bell, with investors looking for further clues on the health of the semiconductor industry after a bruising session for the broader tech sector.

3:40pm: Proactive news headlines Custom Health Holdings Inc (TSX:CHLT) initiated Buy-rated coverage from Stifel with a C$12 price target, with analysts highlighting significant upside driven by the company's medication management platform. 374Water Inc (NASDAQ:SCWO, FRA:8LL) said a US Army Corps of Engineers report independently validated its AirSCWO technology, demonstrating 99.9993% destruction and removal efficiency for PFAS during testing. Royalty Management Holding Corp (NASDAQ:RMCO) said its royalty partner ReElement Technologies secured new financing to expand operations, a move expected to increase royalty revenue under their existing agreement. Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF, FRA:7KE) closed the $7.5 million equity portion of a previously announced $15 million strategic investment from SRC Agrominerals Sales, with the convertible debenture portion expected to close in August 2026. 2:30pm: Market movers Tesla Inc (NASDAQ:TSLA) shares fell despite record vehicle sales and stronger-than-expected revenue as investors focused on weaker profitability and future growth concerns. Alphabet Inc (NASDAQ:GOOG) shares dropped despite beating earnings and revenue forecasts as investors weighed concerns around valuation and expectations following the results. American Airlines Group Inc (NASDAQ:AAL, XETRA:A1G) shares fell despite beating second-quarter earnings expectations as the carrier warned that higher fuel costs could pressure third-quarter results. T-Mobile US Inc (NASDAQ:TMUS, XETRA:TM5) reported stronger-than-expected second-quarter earnings but saw shares decline after revenue narrowly missed Wall Street estimates. 374Water Inc (NASDAQ:SCWO, FRA:8LL) said a US Army Corps of Engineers report independently validated its AirSCWO technology, showing 99.9993% destruction and removal efficiency for PFAS during a demonstration. RTX Corp (NYSE:RTX, XETRA:5UR) shares climbed after the aerospace and defense company delivered better-than-expected second-quarter results and raised its full-year 2026 outlook. Southwest Airlines Co (NYSE:LUV) shares declined after stronger-than-expected second-quarter earnings were offset by a weaker-than-expected third-quarter outlook. International Business Machines Corp (NYSE:IBM) shares slipped after second-quarter revenue and earnings missed expectations and the company lowered its full-year revenue growth forecast. Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF, FRA:7KE) closed a $7.5 million equity investment from SRC. 12:50pm: Oil prices surge after Houthi attacks Oil prices surged above US$100 a barrel on Thursday after Houthi rebels claimed attacks on two Saudi oil tankers in the Red Sea, raising fresh concerns over global energy supplies and rattling financial markets.

“Two of the world’s busiest shipping corridors are under threat in the same month, and markets are only just beginning to work out what that means," said Nigel Green, CEO of deVere Group.

"The timing is awkward for the Federal Reserve, which meets on July 29. Inflation had climbed for three straight months to 4.2% in May, its highest level in years, before cooling to 3.5% in June largely because gasoline prices fell nearly 10% during the brief ceasefire between the US and Iran. 

"With that ceasefire now collapsed and oil back above $100, the drop which gave the Fed room to relax may already be reversing."

11:45am: Alphabet's spending rattles investors Alphabet Inc (NASDAQ:GOOG) shares fell more than 6% after investors looked past better-than-expected second-quarter earnings and focused on the company’s soaring AI spending.

The Google parent reported revenue of $119.8 billion and earnings per share of $9.11, beating Wall Street forecasts, while Google Cloud revenue jumped 82% year over year.

However, quarterly capital expenditure doubled to $44.9 billion, keeping Alphabet on pace for up to $190 billion in spending this year, while free cash flow dropped sharply. Investor sentiment was also weighed down by reports that Google delayed its Gemini 3.5 Pro AI model, although the company has disputed those claims.

11:00am: Tesla sinks on spending, profit Tesla Inc (NASDAQ:TSLA) shares were down about 14% after the electric vehicle maker reported second-quarter results that topped revenue expectations but missed on profit.

Revenue rose 26% year over year to $28.24 billion, while deliveries reached a record 480,126 vehicles, marking the first annual growth in two years. Services revenue climbed 50% and Full Self-Driving subscriptions increased 56%, with the company also reporting its largest order backlog since 2023.

However, adjusted earnings of $0.33 per share missed forecasts, while gross and operating margins weakened as lower vehicle prices, declining regulatory credit sales and rising costs weighed on profitability.

Heavy capital spending also pushed free cash flow into a deficit.

10am: Nasdaq leads losses as Tesla and Alphabet slide US stocks have extended yesterday's losses in early deals, with Tesla dropping over 10% to lead the Nasdaq down 1.8%.

The S&P 500 and Dow Jones are both off more than 0.9%.

Alphabet fell 6.6%, with other Mag 7 names dropping too, including Amazon and Meta both slipping more than 3%.

Biggest faller on the S&P is pest controller Rollins, down 12% after reporting weaker second-quarter revenue growth than expected.

Semis are also being sold again, with Microchip Technology, Qualcomm and Texas Instruments among the Nasdaq's biggest fallers.

Top of the S&P leaderboard is United Rentals after saying it will increase its spending on its fleet this year and raising full-year guidance.

9.20am: Record low US jobless claims US initial jobless claims have fallen to their lowest level since 1969.

New unemployment claims fall to 187K, down from 209K, while the market forecast was for a small rise to 210K.

"While seasonal factors may be impacting the headline number at the margins, the extremely low level of claims highlights a low layoff rate and the strength underlying the labor market," says Matthew Martin at Oxford Economics.

"In the wake of moderating jobless claims, continued claims fell a touch further in the week ended July 11, with the four-week moving average creeping lower.

"The decent pace of nonfarm payroll gains amid weak labor-supply conditions should translate into lower continued claims in the weeks ahead."

8.30am: Iran war has entered a more dangerous phase, RBC warns  The Iran conflict has entered a "decidedly more dangerous phase", with Red Sea oil flows and critical infrastructure increasingly at risk, according to RBC Capital Markets.

Brent crude has topped $99.30 in recent minutes, but commodity strategist Helima Croft says these prices are a "lagging indicator of the extreme pressure building in the region".

Croft warns that the reported targeting of two Saudi tankers by Yemen's Houthis could cause a "material reduction" in Red Sea oil shipments and undermine the belief that "the market always finds a workaround".

Prices could surpass the 2022 peak of $128 a barrel or even reach the 2008 high of $146 in a full regional war, Croft warns. 

She says alternative routes for tankers would significantly increase costs and extend journeys to Asia by around four weeks to roughly 54 days.

Iran's attacks on Kuwaiti desalination facilities are described as "especially concerning", with Kuwait relying on desalination for 90% of its drinking water.

Some Gulf cities could reportedly have only seven days of clean water if plants were disabled.

7.45am: Nasdaq and Dow set to extend losses Wall Street is set for a moderately lower open on Thursday after mixed results from Alphabet and Tesla, while a fresh surge in oil prices revived concerns about inflation and interest rates.

Futures for the Dow Jones, S&P 500 and Nasdaq were all down around 0.3%.

This would see losses extended from the day before, when the Nasdaq dropped 0.6% to 25,691, the S&P fell 0.1% to 7,499, and the Dow finished essentially flat, down six points at 52,219.

After the closing bell, Alphabet Inc (NASDAQ:GOOG) beat revenue and earnings forecasts, with cloud revenue surging 82%, but its shares fell in after-hours trading after the Google owner raised its planned capital expenditure to as much as $205 billion this year. Shares were down 4.1% in pre-market trading.  

Tesla Inc (NASDAQ:TSLA) shares declined 6.2% after reporting its first quarter of negative free cash flow in more than two years as operating costs surged.

European markets were also lower, led by a 1.7% decline in Milan as semiconductor manufacturer STMicroelectronics (NYSE:STM) fell sharply after weaker second-quarter earnings and soft third-quarter guidance disappointed investors following a three-month rally.

In commodities, WTI crude has jumped 4.1% on Thursday morning to above $90.65 a barrel, its highest level in six weeks, as US Central Command confirmed another round of strikes against Iran.

"Strikes between the US and Iran show no sign of easing, and the Houthis said they targeted two oil tankers in the Red Sea yesterday, raising fears that the conflict is widening," said Henry Allen at Deutsche Bank. 

This has raised fresh supply fears as Saudi Arabia has redirected oil exports to the Red Sea port of Yanbu, prompting "fresh concerns about a more prolonged stagflationary shock", with investors pricing in higher inflation and a more hawkish path for central banks.

Fed futures now indicate a 36% chance of an interest-rate increase next week. The European Central Bank is expected to leave rates unchanged when it announces its latest decision later today.

Before the bell, earnings are due from defence groups RTX and Lockheed Martin, telecoms names T-Mobile and Nokia, and other heavyweights including Thermo Fisher, TotalEnergies, Blackstone, Freeport-McMoRan, Comcast and Honeywell.

After the close, attention turns to Intel and SAP, along with gold miner Newmont.

Co-engineered reference design provides a proven blueprint for deploying high-density AI clusters faster and with less risk.   Design supports 246 kW AI racks and large-scale deployments with modular AI clusters of up to 10.4 MW IT load for easy scalability Collaboration combines AMD AI platform innovation and Schneider Electric’s expertise in power, cooling, and digital infrastructure  SAN FRANCISCO, July 23, 2026 (GLOBE NEWSWIRE) -- Schneider Electric, a global energy technology leader, and AMD today announced a jointly developed and validated reference design for the AMD Helios rackscale solution that provides a scalable blueprint for deploying high-density AI environments faster and with reduced risk and complexity. The reference design marks the first milestone of the collaboration between Schneider Electric and AMD and delivers upon the companies’ joint focus to create an easier path to AI Factory deployment.

The new reference design is the first ever developed to support high-density AI workloads on the Helios rackscale solution, which is powered by AMD Instinct™ MI455X GPUs, 6th Gen AMD EPYC™ CPUs, AMD Pensando™ Vulcano NICs and the open ROCm™ software ecosystem. AMD Helios is designed to deliver breakthrough AI performance through advances in compute, interconnect bandwidth, memory capacity and system-level integration, allowing customers to run larger, more complex AI workloads faster while optimizing power and efficiency.

As AI workloads push data center infrastructure to unprecedented limits, reference designs provide data center architects and operators with tested, scalable designs proven to handle new power densities, thermal requirements and operational complexity. By modeling data center physical infrastructure performance, these pre‑validated blueprints help shorten the planning process by defining how power, cooling, and IT infrastructure should be organized to build a reliable, scalable, and AI‑ready data center. The AMD Helios reference design includes information on four technical areas: facility power, facility cooling, IT space, and lifecycle software.

“Today organizations require comprehensive, AI-ready reference designs that can take them from planning to deployment faster and with less risk," said Manish Kumar, Executive Vice President, Secure Power & Data Centers at Schneider Electric. “Through our collaboration with AMD, we're delivering an engineering-backed reference design that bridges the gap between advanced AI compute platforms, energy tech, and real-world data center implementation, enabling customers to deploy scalable, high-density AI environments with greater confidence, efficiency, and speed.”

“AI infrastructure is rapidly moving to full-scale AI factories, and that requires compute, networking, power and cooling to be designed together from the start,” said Forrest Norrod, executive vice president and general manager, Data Center Solutions Business Group, AMD. “AMD Helios provides an open, rack-scale architecture built to deliver the performance, efficiency and flexibility required for next-generation AI workloads. By working with Schneider Electric to create a validated reference design, we are giving customers a practical blueprint to accelerate high-density AI deployments, reduce integration risk and scale with greater confidence and efficiency.”

Reference Design Accelerates AMD Helios Deployment

The new collaboration brings together AMD AI platform innovation and Schneider Electric’s expertise in power, cooling, and digital infrastructure, creating a more tightly integrated approach to deploying both greenfield AI factories and high-density retrofit environments. The reference design supports:

Modular, multi-cluster environments, featuring AI clusters of up to 10.4 MW IT capacity for greenfield deploymentsHigh-density AI workloads up to 246 kW per rackAdvanced liquid cooling using Motivair by Schneider Electric CDU-based and hybrid air/liquid approaches capable of removing up to 84% of heatA digital-first infrastructure approach, which includes: Electrical and thermal design validated using ETAP and EcoStruxure™ IT Design CFD simulation tools that enable real-time monitoring and analytics, AI-driven predictive maintenance, and system-level optimization across power, cooling, and ITIntegrated Electrical Digital Twin capabilities to model, analyze, and manage infrastructure performanceSupport from AVEVA’s Unified Operations Center for real-time monitoring and operational visibility Power and cooling infrastructure deployments that adhere to AMD Helios platform requirements for reduced integration complexity and deployment riskBetter energy efficiency, with ability to achieve PUE as low as ~1.12 at full load The reference design has been validated to ANSI standards for U.S. deployments, with plans to extend the framework to support IEC standards for global implementations in the future.

Press contact: [email protected]

Related resources:

Data Center Reference Design 121: 10.4 and 6.2 MW, Tier III, ANSI, Chilled Water, Liquid-Cooled AI Clusters (AMD Instinct MI455X GPUs) About Schneider Electric

Schneider Electric is a global energy technology leader, driving efficiency and sustainability by electrifying, automating, and digitalizing industries, businesses, and homes. Its technologies enable buildings, data centers, factories, infrastructure, and grids to operate as open, interconnected ecosystems, enhancing performance, resilience, and sustainability. The portfolio includes intelligent devices, software-defined architectures, AI-powered systems, digital services, and expert advisory.

With 160,000 employees and one million partners in over 100 countries, Schneider Electric is consistently ranked among the world’s most sustainable companies.

www.se.com

Discover the newest perspectives on Advancing Energy Tech on Schneider Electric Insights.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/92c9a990-e87a-4338-92c6-09f0748e2c4a

Schneider Electric and AMD release first Helios platform reference design to accelerate AI Factory d... Schneider Electric and AMD release first Helios platform reference design to accelerate AI Factory d...

© Shutterstock / Piotr Swat

The bull case for NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) looks strong on paper. NVDA stock trades at $208.48, up 22% over the past year; the company just posted $81.61 billion in quarterly revenue; and NVIDIA CEO Jensen Huang keeps describing the AI buildout as the largest infrastructure project in history.

However, a reported set of remarks out of China this week hits at the one thing bulls take for granted: NVIDIA’s CUDA software moat. If the thesis is right, it changes the math on NVDA stock; by extension, this could also carry negative implications for the iShares Semiconductor ETF (NASDAQ:SOXX) as well as individual U.S. chip names like Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD).

The Chinese CEO Behind the Bear Case According to a summary of a leaked investor call attributed to DeepSeek CEO Liang Wenfeng, posted on X by Citrini Research analyst Jukan (@jukan05), DeepSeek is working closely with Huawei and believes it can secure roughly 16,000 Huawei AI chips. The remarks are reported and unverified.

The reported claims go further. Wenfeng allegedly argued that AI-powered code generation and languages such as TileLang could rapidly lower the CUDA ecosystem’s barriers to entry, and that DeepSeek has already cut its software dependence on NVIDIA using its own compiler and a TileLang-based environment. Port that stack to Huawei silicon, the argument goes, and Huawei’s 950 SuperNode could replace workloads currently handled by NVIDIA’s GB200 and GB300.

Jukan’s own summary characterization, not a Wenfeng quote, was blunt: “The end of CUDA’s moat is approaching. The ecosystem problem for Chinese chips could be solved within a year. The only real bottleneck left is production itself.” He added he was “Very bearish on NVDA.”

A Balanced View: The Gap Is Still Real Even the leaked remarks concede NVIDIA’s lead. It reportedly takes roughly four Huawei cards to match one NVIDIA card, with Huawei described as about two years behind. Porting an unproven software stack across ecosystems is genuinely hard.

The fundamentals reinforce that. NVIDIA’s Data Center revenue hit $75.25 billion, up 92%, non-GAAP EPS came in at $1.87 versus the $1.77 estimate, and management disclosed $119 billion in supply-related commitments alongside an $80 billion buyback authorization. NVIDIA stock carries a trailing P/E ratio of 32x, and because earnings are compounding so quickly, the forward multiple looks meaningfully lower.

Analyst sentiment on NVDA remains overwhelmingly bullish: 58 Buys, 2 Holds, and 1 Sell. That lopsided tally underscores how far Wall Street’s consensus sits from the CUDA-erosion thesis outlined above.

Earnings Preview: August 26 NVIDIA reports its fiscal Q2 2027 results on August 26 after the close. NVIDIA’s guidance calls for revenue of $91 billion plus or minus 2% with non-GAAP gross margin of 75%, and it explicitly excludes any Data Center compute revenue from China, meaning China weakness is already priced into the outlook.

Investors can watch for Data Center growth, the Blackwell and Vera Rubin ramp, gross margin durability, and any direct commentary from Huang addressing the CUDA-moat narrative. The CUDA erosion thesis is a real multi-year risk resting on unverified claims, set against a company still growing at extraordinary rates. That tension, and not just a single verdict, is what NVIDIA shareholders need to sit with.

Contact [email protected] for any questions or corrections.

Key Takeaways FedEx Freight debuted as a standalone S&P 500 LTL carrier with a large North American network. Management targets 4%-6% revenue growth, 10%-12% adjusted operating income growth and $1B free cash flow. Standalone systems, freight cyclicality and elevated debt could pressure costs and demand. FedEx Freight (FDXF - Free Report) has entered the public market as a standalone freight company. Its S&P 500 debut gives investors a clearer way to evaluate a business that was previously housed inside FedEx.

The case now rests on a focused less-than-truckload, or LTL, network, post-spin targets and the company’s ability to execute without the operating support of its former parent.

FDXF Starts Life as a Pure LTL CarrierFedEx Freight is now a focused North American LTL carrier serving manufacturers, retailers, distributors and business customers. The model moves smaller freight shipments from many customers through a shared terminal and linehaul network rather than dedicating an entire truck to one shipper.

Scale is central to that model. FDXF handles roughly 90,000 daily shipments across more than 365 locations, supported by 30,000 vehicles and 40,000 team members. That footprint matters because LTL customers value coverage, reliable pickup and delivery, shipment visibility and claims performance.

The company now sits in a peer set that includes Old Dominion Freight Line (ODFL - Free Report) , a major national LTL carrier, and XPO (XPO - Free Report) , which also competes in North American LTL. Those peers give investors a useful comparison group for pricing discipline, service quality and margin performance.

FedEx Freight Gains Strategic FreedomThe spin-off changes the management agenda. FedEx Freight no longer competes internally with parcel and express operations for capital, systems investment or executive attention. The company can direct resources toward freight customers and freight-specific network decisions.

That independence could sharpen execution. A dedicated sales force can focus on industrial, retail and distribution accounts, while technology spending can be targeted toward shipment visibility, pricing, dock productivity and route planning.

Strategic freedom does not guarantee faster growth, but it creates a cleaner investment story. Investors can now judge FDXF on freight fundamentals rather than on its contribution to a broader transportation portfolio.

FDXF Growth Plan Centers on MarginsManagement’s medium-term targets frame the stock’s growth case. FedEx Freight is aiming for revenue growth of 4% to 6% and adjusted operating income growth of 10% to 12% over the medium term.

The plan also calls for free cash flow above $1 billion, free cash flow conversion above 90% and a capital expenditure-to-revenue ratio near 5%. Those targets suggest that the company is not simply chasing shipment volume.

That distinction is important in LTL. Volume growth can help network density, but poorly priced freight can dilute margins. For FDXF, the cleaner upside would come from better yields, improved network balance, disciplined capacity spending and productivity gains.

FedEx Freight Faces a Tough Reality CheckExecution risk is the first test. FedEx Freight must build and operate standalone corporate systems after the spin-off, including public-company functions. Any disruption could absorb management time and raise costs early in independence.

The business is also exposed to the freight cycle. Industrial production, manufacturing activity, retail replenishment and broader business spending influence LTL volumes. Softer demand could pressure shipment counts, pricing and operating leverage.

Leverage adds another constraint. Elevated debt created before separation may reduce flexibility if the freight market weakens or if standalone costs run higher than planned. Debt service needs can compete with technology spending and network investment.

FDXF Signals a Mixed Setup for InvestorsThe bottom line is that FedEx Freight offers a cleaner way to own a large North American LTL network, but the stock still needs operating proof as a standalone company. The spin-off improves strategic focus, yet investors have to weigh that against systems execution, cyclicality and balance-sheet pressure.

FDXF currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. We believe the stock remains worth holding for investors with a long-term horizon.

The consensus price target for FDXF stock is $175, implying an upside of more than 17% from current levels.

Image Source: Zacks Investment Research

The stock also has a Value Score of C, Growth Score of C, Momentum Score of F and VGM Score of D. That mix points to a neutral near-term setup rather than a clear buying signal.

The Style Scores reinforce that stance. C grades in value and growth suggest middle-of-the-road characteristics, while the F in momentum indicates weak timing on that measure. With a VGM Score of F, FDXF looks better suited for monitoring than for an aggressive entry until investors see cleaner execution and evidence that margin targets are becoming durable results.

, /PRNewswire/ -- Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, "Charter") announced today the commencement by its wholly-owned subsidiaries, Charter Communications Operating, LLC ("CCO"), Charter Communications Operating Capital Corp. ("CCO Capital" and, together with CCO, collectively, the "CCO Issuers" or the "Company") and Time Warner Cable, LLC (the "TWC Issuer" and, together with CCO Issuers, the "Old Notes Issuers") of a private offer to exchange (the "Pool 1 Offer") seven series of notes issued by the CCO Issuers or the TWC Issuer, as applicable (collectively, the "Pool 1 Notes"), for a combination of cash consideration and a new series of Senior Secured Notes due 2038 (the "New 2038 Notes") to be issued by the CCO Issuers with registration rights, as described and for the consideration summarized in the table below. The aggregate principal amount of Pool 1 Notes of each series that are accepted for exchange will be based on, among other things, the order of acceptance priority for such series as set forth in the table below and, with respect to the 4.500% senior debentures due 2042 issued by the TWC Issuer (the "4.500% Notes"), the sub-cap with respect to the aggregate principal amount of such series set forth in the table below (the "4.500% Notes Sub-Cap"), such that the aggregate principal amount of Pool 1 Notes accepted in the Pool 1 Offer results in the issuance of New 2038 Notes in an amount not exceeding $1,750,000,000 (the "New 2038 Notes Cap").

Issuer(s)

Title of Security

Aggregate Principal Amount Outstanding

CUSIP No./ ISIN(1)

Acceptance Priority Level(2)

Sub-Cap(2)

Reference Treasury

Bloomberg Reference Page(3)

Fixed Spread (Basis Points)

Early Exchange Premium(4)(5)

Cash
Component(6)

CCO Issuers

3.500% senior secured notes due 2042

$1,236,000,000

161175CE2 / US161175CE27

1

N/A

5.000% due May 15, 2046

FIT 1

+165 Bps

$50.00

$95.00

3.500% senior secured notes due 2041

$1,479,000,000

161175BZ6 / US161175BZ64

2

N/A

4.375% due May 15, 2036

FIT 1

+215 Bps

$50.00

$130.00

Time Warner Cable, LLC ("TWC Issuer" or "TWC")

4.500% senior debentures due 2042

$1,250,000,000

88732JBD9 / US88732JBD90

3

$450,000,000

5.000% due May 15, 2046

FIT 1

+190 Bps

$50.00

$305.00

CCO Issuers

5.375% senior secured notes due 2047

$2,265,000,000

161175BL7 / US161175BL78

161175BD5 /

US161175BD52

4

N/A

5.000% due May 15, 2046

FIT 1

+215 Bps

$50.00

$120.00

2.300% senior secured notes due 2032

$1,000,000,000

161175BX1 / US161175BX17

5

N/A

4.125% due June 30, 2031

FIT 1

+110 Bps

$50.00

$0.00

2.800% senior secured notes due 2031

$1,590,000,000

 161175BU7 / US161175BU77

6

N/A

4.125% due June 30, 2031

FIT 1

+110 Bps

$50.00

$0.00

2.250% senior secured notes due 2029

$1,250,000,000

161175CD4 / US161175CD44

7

N/A

4.125% due July 15, 2029

FIT 1

+80 Bps

$50.00

$0.00

_____________

(1)

No representation is made as to the correctness or accuracy of the CUSIP or ISIN numbers listed in the Offering Memorandum (as defined below). Such CUSIP and ISIN numbers are provided solely for the convenience of the holders of Pool 1 Notes.

(2)

Subject to the New 2038 Notes Cap and, solely with respect to the 4.500% Notes, the 4.500% Notes Sub-Cap set forth in this table and proration, the principal amount of each series of Pool 1 Notes that is purchased in the Pool 1 Offer will be determined in accordance with the applicable Acceptance Priority Level (in numerical priority order with 1 being the highest Acceptance Priority Level and 7 being the lowest) specified in this column.

(3)

The Bloomberg Reference Page/Screen is provided for convenience only. To the extent any Bloomberg Reference Page/Screen changes prior to the Pricing Time (as defined below), the Joint-Lead Dealer Managers referred to below will quote the applicable Reference Treasury Security from the updated Bloomberg Reference Page/Screen.

(4)

Per $1,000 principal amount of the Pool 1 Notes validly tendered prior to or at the Early Tender Date (and not validly withdrawn at or prior to the Withdrawal Deadline (as defined below)) and accepted for exchange, to be paid in the form of New 2038 Notes.

(5)

The Total Exchange Consideration (as defined below) for the Pool 1 Notes validly tendered prior to or at the Early Tender Date (and not validly withdrawn at or prior to the Withdrawal Deadline) and accepted for exchange is inclusive of the Early Exchange Premium.

(6)

Represents the portion of the Total Exchange Consideration or the Base Exchange Consideration in each case for the Pool 1 Notes, as applicable, that will be payable in cash per $1,000 principal amount of Pool 1 Notes validly tendered and accepted for exchange. 

Charter also announced today the commencement by CCO Issuers of a private offer to exchange (the "Pool 2 Offer") five series of notes (collectively, the "Pool 2 Notes" and, together with the Pool 1 Notes, the "Old Notes" and each series of Old Notes, a "series of Old Notes") for a combination of cash and a new series of Senior Secured Notes due 2041 (the "New 2041 Notes" and, together with the New 2038 Notes, the "New Notes" and each series of New Notes, a "series of New Notes") to be issued by the CCO Issuers with registration rights, as described and for the consideration summarized in the table below. The aggregate principal amount of Pool 2 Notes of each series that are accepted for exchange will be based on, among other things, the order of acceptance priority for such series as set forth in the table below, such that the aggregate principal amount of Pool 2 Notes accepted in the Pool 2 Offer results in the issuance of New 2041 Notes in an amount not exceeding $1,750,000,000 (the "New 2041 Notes Cap").

Issuer(s)

Title of Security

Aggregate Principal Amount Outstanding

CUSIP No./ ISIN(1)

Acceptance Priority Level(2)

Sub-Cap(2)

Reference Treasury

Bloomberg Reference Page(3)

Fixed Spread (Basis Points)

Early Exchange Premium(4)(5)

Cash
Component(6)

CCO Issuers

3.700% senior secured notes due 2051

$2,050,000,000

161175BV5 / US161175BV50

1

N/A

4.750% due February 15, 2056

FIT 1

+190 Bps

$50.00

$0.00

3.900% senior secured notes due 2052

$2,400,000,000

161175CA0 / US161175CA05

2

N/A

4.750% due February 15, 2056

FIT 1

+195 Bps

$50.00

$0.00

4.800% senior secured notes due 2050

$2,473,000,000

161175BT0 / US161175BT05

3

N/A

4.750% due February 15, 2056

FIT 1

+205 Bps

$50.00

$117.50

5.125% senior secured notes due 2049

$1,244,000,000

161175BS2 / US161175BS22

4

N/A

5.000% due May 15, 2046

FIT 1

+220 Bps

$50.00

$150.00

5.250% senior secured notes due 2053

$1,500,000,000

161175CK8 / US161175CK86

5

N/A

4.750% due February 15, 2056

FIT 1

+210 Bps

$50.00

$190.00

_____________

(1)

No representation is made as to the correctness or accuracy of the CUSIP or ISIN numbers listed in the Offering Memorandum. Such CUSIP and ISIN numbers are provided solely for the convenience of the holders of Pool 2 Notes.

(2)

Subject to the New 2041 Notes Cap and, the principal amount of each series of Pool 2 Notes that is purchased in the Pool 2 Offer will be determined in accordance with the applicable Acceptance Priority Level (in numerical priority order with 1 being the highest Acceptance Priority Level and 5 being the lowest) specified in this column.

(3)

The Bloomberg Reference Page/Screen is provided for convenience only. To the extent any Bloomberg Reference Page/Screen changes prior to the Pricing Time, the Joint-Lead Dealer Managers referred to below will quote the applicable Reference Treasury Security from the updated Bloomberg Reference Page/Screen.

(4)

Per $1,000 principal amount of the Pool 2 Notes validly tendered prior to or at the Early Tender Date (and not validly withdrawn at or prior to the Withdrawal Deadline) and accepted for exchange, to be paid in the form of New 2041 Notes.

(5)

The Total Exchange Consideration for the Pool 2 Notes validly tendered prior to or at the Early Tender Date (and not validly withdrawn at or prior to the Withdrawal Deadline) and accepted for exchange is inclusive of the Early Exchange Premium.

(6)

Represents the portion of the Total Exchange Consideration or the Base Exchange Consideration in each case for the Pool 2 Notes, as applicable, that will be payable in cash per $1,000 principal amount of Pool 2 Notes validly tendered and accepted for exchange.

Eligible Holders (as defined below) of Old Notes who validly tendered at or prior to the Early Tender Date (and not validly withdrawn at or prior to the Withdrawal Deadline), and whose Old Notes are accepted pursuant to the terms of the applicable Exchange Offers, will receive the Total Exchange Consideration. The Total Exchange Consideration (which includes the Early Exchange Premium) for each $1,000 principal amount of Old Notes validly tendered at or prior to the Early Tender Date (and not validly withdrawn at or prior to the Withdrawal Deadline) and accepted for exchange pursuant to the terms of the applicable Exchange Offers will be divided into (i) a cash payment equal to the applicable Cash Component and (ii) a principal amount of the applicable series of New Notes equal to the Total Exchange Consideration of the series of outstanding Old Notes tendered minus such Cash Component. The "Total Exchange Consideration" for each $1,000 principal amount of Old Notes validly tendered at or prior to the Early Tender Date (as defined below) (and not validly withdrawn at or prior to the Withdrawal Deadline) and accepted for exchange pursuant to the terms of the applicable Exchange Offers will be determined in accordance with standard market practice, as described in the Offering Memorandum using the applicable "Exchange Offer Yield," which will be equal to the sum of (i) the yield to maturity (the "Reference Yield") based on the bid side price of the U.S. Treasury Security (the "Reference U.S. Treasury Security") specified on the tables above for each series of Old Notes, as calculated by the Joint-Lead Dealer Managers (as defined below) at 10:00 a.m., New York City time, on August 6, 2026 (subject to certain exceptions set forth herein, such time and date, as the same may be extended, the "Pricing Time") appearing on the Bloomberg Reference Page specified on the front cover of the Offering Memorandum for such series of Old Notes (or any other recognized quotation source selected by the Joint-Lead Dealer Managers in their sole discretion if such quotation report is not available or manifestly erroneous), plus (ii) the applicable fixed spread (the "Fixed Spread") specified for each series of Old Notes in the tables above. The Total Exchange Consideration will include the Early Exchange Premium.

The New 2038 Notes will bear interest at a rate per annum to be determined as of the Pricing Time, as the sum of (a) the bid-side yield on the 4.375% U.S. Treasury Notes due May 15, 2036 (the "Benchmark Security"), as calculated by the Joint-Lead Dealer Managers in accordance with standard market practice, as of the Pricing Time as displayed on the Bloomberg Reference Page FIT 1 (or any recognized quotation source selected by the Joint-Lead Dealer Managers in their sole discretion if the Bloomberg Reference Page FIT 1 is not available or is manifestly erroneous), plus (b) 2.450%, rounded to the nearest 0.001%, such that the New 2038 Notes will be issued at par. The New 2041 Notes will bear interest at a rate per annum to be determined as of the Pricing Time, as the sum of (a) the bid-side yield on the Benchmark Security, as calculated by the Joint-Lead Dealer Managers in accordance with standard market practice, as of the Pricing Time as displayed on the Bloomberg Reference Page FIT 1 (or any recognized quotation source selected by the Joint-Lead Dealer Managers in their sole discretion if the Bloomberg Reference Page FIT 1 is not available or is manifestly erroneous), plus (b) 2.700%, rounded to the nearest 0.001%, such that the New 2041 Notes will be issued at par.

Set forth below is a table summarizing certain material terms of the New Notes:

Title of Series

Maturity Date

Benchmark Security

Spread to Benchmark
Security (bps)

New 2038 Notes     

September 1, 2038     

4.375% UST due May 
15, 2036

245

New 2041 Notes

September 1, 2041

4.375% UST due May
15, 2036

270

Eligible Holders of Old Notes who validly tendered after the Early Tender Date but on or prior to the Expiration Date, and whose Old Notes are accepted pursuant to the terms of the applicable Exchange Offers, will receive the Base Exchange Consideration. The Base Exchange Consideration for each series of Old Notes validly tendered and accepted for exchange pursuant to the Exchange Offers will equal the Total Exchange Consideration for such series of Old Notes minus the applicable Early Exchange Premium for such series of Old Notes.

In addition, Eligible Holders of Old Notes who validly tendered their Old Notes on or prior to the Expiration Date, and whose Old Notes are accepted pursuant to the terms of the applicable Exchange Offers, will receive in cash accrued and unpaid interest from the last applicable interest payment date to, but excluding, the date on which the exchange of such Old Notes is settled (the "Accrued Interest"), plus amounts due in lieu of fractional amounts of New Notes. Eligible Holders who receive New Notes in exchange for Old Notes on the Final Settlement Date (as defined below) will receive New Notes that will, if the Early Settlement Date (as defined below) has occurred, have an embedded entitlement to pre-issuance interest for the period from, and including, the Early Settlement Date to, but not including, the Final Settlement Date. As a result, the cash payable for Accrued Interest on the Old Notes exchanged on the Final Settlement Date will be reduced by the amount of pre-issuance interest on the New Notes exchanged therefor.

The Exchange Offers are being conducted upon the terms and subject to the conditions set forth in an offering memorandum, dated July 23, 2026 (the "Offering Memorandum"). The Company reserves the right, in its sole and absolute discretion, to increase the New 2038 Notes Cap or the New 2041 Notes Cap without extending the Withdrawal Deadline or otherwise reinstating withdrawal rights.

The consummation of each Exchange Offer is subject to and conditioned upon the satisfaction or waiver of certain conditions, including, (i) that with respect to each series of New Notes, at least $500,000,000 aggregate principal amount of such series of New Notes would be issued on the Early Settlement Date, (ii) that as of the Pricing Time, the combination of the yield of the New Notes and the Total Exchange Consideration or the Base Exchange Consideration, as applicable, for the applicable series of Old Notes would result in the New Notes and such Old Notes being treated as "substantially different" under FASB Accounting Standards Codification ("ASC") 470-50 and (iii) that with respect to any Old Notes validly tendered pursuant to any Exchange Offer that will be exchanged on the Final Settlement Date, we determine that the New Notes to be issued on the Final Settlement Date in such Exchange Offer will be treated as part of the same issue as the New Notes, if any, issued on the Early Settlement Date for U.S. federal income tax purposes. The Company reserves the right, in its sole discretion, to (i) amend the terms of any Exchange Offer or (ii) waive or amend any condition described in the Offering Memorandum with respect to any Exchange Offer, without extending the Early Tender Date or the Withdrawal Deadline or otherwise reinstating withdrawal rights for any Exchange Offer, subject to applicable law.

Only Eligible Holders of Old Notes who validly tender their Old Notes at or before 5:00 p.m. New York City time on August 5, 2026, subject to any extension by the Company (the "Early Tender Date"), who do not validly withdraw their tenders and whose Old Notes are accepted for exchange, will receive an early exchange premium as set forth in the tables above (the "Early Exchange Premium").

The Exchange Offers will expire at 5:00 p.m., New York City time, on August 20, 2026, unless extended or earlier terminated by the Company (the "Expiration Date"). Tenders of Old Notes submitted in the Exchange Offers at or prior to 5:00 p.m. New York City time on August 5, 2026, subject to any extension by the Company (the "Withdrawal Deadline"), may be validly withdrawn at any time prior to the Withdrawal Deadline, but thereafter will be irrevocable, except in certain limited circumstances where additional withdrawal rights are required by law (as determined by the Company). Tenders submitted in the Exchange Offers after the Withdrawal Deadline will be irrevocable except in the limited circumstances where additional withdrawal rights are required by law (as determined by the Company).

The Company reserves the right, but is under no obligation, at any point following the Early Tender Date and before the Expiration Date, to accept for exchange any Old Notes validly tendered at or prior to the Early Tender Date (the date of such exchange, the "Early Settlement Date"). The Early Settlement Date will be determined at the Company's option and is currently expected to occur on August 12, 2026, the fifth business day immediately following the Early Tender Date. If, after the Early Tender Date, the Company choose to exercise its options to have an Early Settlement Date and all conditions to the relevant Exchange Offers have been or are concurrently satisfied or waived by the Company, the Old Notes Issuers will, subject to the terms of the Exchange Offers, accept for exchange all Old Notes validly tendered in the Exchange Offers prior to the Early Tender Date subject to proration, and the exchange for such Old Notes will be made on the Early Settlement Date.

The Final Settlement Date for the Exchange Offers will be promptly after the Expiration Date and is currently expected to occur on August 24, 2026, the second business day immediately following the Expiration Date (the "Final Settlement Date").

The Exchange Offers are only being made, and the New Notes and related guarantees are only being offered and will only be issued to holders of Old Notes who are (1) reasonably believed to be "qualified institutional buyers" ("QIBs") as defined in Rule 144A under the Securities Act ("Rule 144A") or (2) outside the United States to persons other than "U.S. persons" as defined in Rule 902 under the Securities Act in offshore transactions in compliance with Regulation S under the Securities Act ("Regulation S") (such holders, the "Eligible Holders"). Only Eligible Holders who have properly completed and returned the eligibility certification, which is available from the Information Agent, are authorized to receive and review the Offering Memorandum and to participate in the Exchange Offers. Additionally, in order to participate in the Exchange Offers, Eligible Holders located in Canada are required to complete, sign and submit to the Information Agent a Canadian Eligibility Form (which is available from the Information Agent). There is no separate letter of transmittal in connection with the offering memorandum.

The New Notes and related guarantees have not been registered under the Securities Act or any state securities laws. Therefore, the New Notes and related guarantees may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any applicable state securities laws.

Holders are advised to check with any bank, securities broker or other intermediary through which they hold Old Notes as to when such intermediary needs to receive instructions from a holder in order for that holder to be able to participate in, or (in the circumstances in which revocation is permitted) revoke their instruction to participate in the Exchange Offers before the deadlines specified herein and in the Offering Memorandum, eligibility certification and Canadian Eligibility Form. The deadlines set by each clearing system for the submission and withdrawal of exchange instructions will also be earlier than the relevant deadlines specified herein and in the Offering Memorandum, eligibility certification and Canadian Eligibility Form.

This press release is not an offer to sell or a solicitation of an offer to buy any of the securities described herein. The Exchange Offers are being made solely by the Offering Memorandum and only to such persons and in such jurisdictions as is permitted under applicable law.

Barclays Capital Inc., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC are serving as the dealer managers for the Exchange Offers (the "Joint Lead Dealer Managers"). Questions regarding the Exchange Offers may be directed to Barclays Capital Inc., Liability Management Group at (800) 438-3242 (toll free) or (212) 528-7581 (collect), Citigroup Global Markets Inc., Liability Management Group at (800) 558-3745 (toll free) or (212) 723-6106 (collect) or Morgan Stanley & Co. LLC, Liability Management Group at (800) 624-1808 (toll free) or (212) 761-1057 (collect).

D.F. King & Co., Inc. will act as the exchange agent and information agent for the Exchange Offers. Documents relating to the Exchange Offers will only be distributed to holders of Old Notes who certify that they are Eligible Holders. Questions or requests for assistance related to the Exchange Offers or for additional copies of the Offering Memorandum, eligibility certification or Canadian beneficial holder form may be directed to D.F. King & Co., Inc. at (888) 644-5854 (toll-free) or (646) 981-1289 (banks and brokers) or by email at [email protected]. You may also contact your broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Exchange Offers. The Offering Memorandum, eligibility certification and Canadian beneficial holder form can be accessed at the following link: www.dfking.com/charter.

About Charter
Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company with services available to nearly 59 million homes and small to large businesses across 41 states through its Spectrum brand. Founded in 1993, Charter has evolved from providing cable TV to streaming, and from high-speed Internet to a converged broadband, WiFi and mobile experience. Over the Spectrum Fiber Broadband Network and supported by our 100% U.S.-based employees, the company offers Seamless Connectivity and Entertainment with Spectrum Internet®, Mobile, TV and Voice products.

More information about Charter can be found at corporate.charter.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, the Exchange Offers. Although we believe that our plans, intentions and expectations as reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under "Risk Factors" from time to time in Charter's filings with the SEC. Many of the forward-looking statements contained in this press release may be identified by the use of forward-looking words such as "believe," "future," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," "aim," "on track," "target," "opportunity," "tentative," "positioning," "designed," "create," "predict," "project," "initiatives," "seek," "would," "could," "continue," "ongoing," "upside," "increases," "grow," "focused on" and "potential," among others. 

All forward-looking statements attributable to the Company or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. The Company is under no duty or obligation to update any of the forward-looking statements after the date of this press release.

SOURCE Charter Communications, Inc.

SAP SE (NYSE:SAP) posted its second-quarter results after Thursday’s closing bell, missing analyst estimates on the top and bottom lines.  Here’s a look at the key figures from the quarter.

SAP stock is moving. Watch the price action here. SAP reported quarterly earnings of $1.85 per share, which missed the consensus estimate of $2.01 by 7.96%, according to Benzinga Pro data. 

Quarterly revenue came in at $11.48 billion, which just missed the Street estimate of $11.49 billion and was up from $10.24 billion in the same period last year.

SAP reported the following second quarter highlights:

“We delivered another quarter of strong current cloud backlog growth, up 26% at constant currencies. This performance is underpinned by our Autonomous Enterprise strategy with strong momentum across our Autonomous Suite as well as our Business AI Platform,” said CEO Christian Klein.

Looking AheadSAP expects sees constant currencies total revenue growth in 2026 to remain at similar levels as in 2025 (10.6%) and to accelerate in 2027.

SAP Stock Price Activity: According to data from Benzinga Pro, SAP stock was up 1.52% to $148.60 in Thursday’s extended trading.  

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The Pentagon on Thursday announced a contract with Oracle worth almost $7 billion over a decade, a big win for the software maker, which has been punished by investors this year. The stock rose about 3% in extended trading.

The contract covers the use of Oracle software in on-premises data centers for branches of the military, the U.S. intelligence community and the Coast Guard, according to a statement. The Central Intelligence Agency was Oracle's first customer.

Kirsten Davies, the Department of Defense's chief information officer, said in the release that the agency is saving at least $441 million for taxpayers "by fundamentally improving how we procure on-premises Oracle capabilities."

Earlier this week, Defense Secretary Pete Hegseth estimated that the war in Iran, which began in February, has cost the U.S. $37.5 billion.

Oracle co-founder Larry Ellison has long been a supporter of President Donald Trump, reportedly contributing $45 million to a nonprofit backing Trump's 2024 presidential campaign.

Ellison was among the first guests to appear in the White House during Trump's second term, announcing plans for Stargate artificial intelligence data centers in the U.S. Trump supported Oracle taking a stake in TikTok's U.S. business, and in May, the Defense Department announced agreements with Oracle and other tech companies around AI deployments in classified networks.

Still, Oracle shares are down 38% this year, as investors have grown concerned that AI could hurt growth prospects for software incumbents. The company is also racking up tens of billions of dollars in debt to build out AI data centers.

Oracle said in June that quarterly software revenue declined 2% from a year earlier, though the company's database software is widely used inside large companies. Cloud revenue climbed 47% as the company rushes to supply AI computing power to OpenAI and other clients.

watch now

AUSTIN, Texas, July 23, 2026 (GLOBE NEWSWIRE) -- Digital Realty (NYSE: DLR), the world’s largest cloud- and carrier-neutral data center platform, announced today financial results for the second quarter of 2026. All per share results are presented on a fully diluted basis.

Highlights

Reported net income available to common stockholders of $1.21 per share in 2Q26, compared to $2.94 in 2Q25Reported FFO per share of $2.73 in 2Q26, compared to $1.75 in 2Q25Reported Core FFO per share of $2.65 in 2Q26, compared to $1.87 in 2Q25; reported Core FFO per share (excluding net promote) of $2.13 in 2Q26Signed total bookings during 2Q26 that are expected to generate $307 million of annualized GAAP base rent at 100% share; at Digital Realty’s share, bookings were $208 million, including a $108 million contribution from the 0-1 megawatt plus interconnection categoryIn July, signed two hyperscale leases, representing $410 million of annualized GAAP base rent at 100% share, or $205 million at Digital Realty’s shareReported rental rate increases on renewal leases of 25.4% on a cash basis in 2Q26Reported a record total backlog of $1.9 billion of annualized GAAP base rent at 100% share, at the end of 2Q26; at Digital Realty’s share, the backlog was $1.4 billionRaised 2026 Core FFO per share (excluding net promote) outlook to $8.15 - $8.20 and 2026 Constant-Currency Core FFO per share (excluding net promote) outlook to $8.10 - $8.15 Financial Results

Digital Realty reported total revenues of $1.9 billion in the second quarter of 2026, an 18% increase from the previous quarter and a 29% increase from the same quarter last year.

During the second quarter, Digital Realty recognized $188 million of net promote income in Core FFO related to the successful development and leasing of three data centers in its development joint venture. The company also recognized a $94 million insurance settlement, net of income tax, related to a previously disclosed 2024 matter, of which approximately $27 million was recognized in Core FFO as business interruption recovery; the remainder related to property damage recoveries, was excluded from Core FFO.

The company delivered net income of $458 million in the second quarter of 2026, as well as net income available to common stockholders of $443 million and $1.21 per share, compared to $0.46 per share in the previous quarter and $2.94 per share in the same quarter last year.

Digital Realty generated Adjusted EBITDA of $978 million in the second quarter of 2026, a 6% increase from the previous quarter and a 19% increase over the same quarter last year.

The company reported Funds From Operations (FFO) of $982 million in the second quarter of 2026, or $2.73 per share, compared to $1.99 per share in the previous quarter and $1.75 per share in the same quarter last year.

Digital Realty delivered Core FFO per share (excluding net promote) of $2.13 in the second quarter of 2026, compared to $2.04 per share in the previous quarter and $1.87 per share in the same quarter last year. Digital Realty delivered Constant-Currency Core FFO per share (excluding net promote) of $2.11 in the second quarter of 2026 and $4.07 per share for the six-month period ended June 30, 2026.

“Digital Realty delivered record Core FFO per share in the quarter, reflecting robust customer demand and strong execution across our core pillars of growth,” said President and Chief Executive Officer Andy Power. “We signed more than $100 million of 0-1 MW plus Interconnection bookings for the first time, demonstrating the strength of our connectivity-rich portfolio and boosting near-term growth. We also continued to make strides in our hyperscale and strategic private capital verticals, as we added powered land in the Kansas City metro, accretively purchased interests in three hyperscale data centers in Northern Virginia, and announced the deal to acquire Columbia Capital, a leading investment firm in the digital infrastructure space. Together, these growth vectors are driving double-digit bottom line growth, and we are focused on extending this runway for years to come.”

Leasing Activity

In the second quarter, Digital Realty signed total bookings that are expected to generate $307 million of annualized GAAP rental revenue, at 100% share; at Digital Realty’s share, total bookings were $208 million, including an $88 million contribution from the 0-1 MW category and a $20 million contribution from interconnection.

The weighted-average lag between new leases signed during the second quarter of 2026 and the contractual commencement date was nine months. The backlog of signed-but-not-commenced leases at quarter-end was $1.9 billion of annualized GAAP base rent at 100% share, and $1.4 billion at Digital Realty’s share. In addition, Digital Realty also signed renewal leases representing $262 million of annualized cash rental revenue during the quarter. Rental rates on renewal leases signed during the second quarter of 2026 increased 25.4% on a cash basis and 32.0% on a GAAP basis.

New leases signed during the second quarter of 2026, at Digital Realty’s share, are summarized by region and product as follows:

        Annualized GAAP      Base Rent   GAAP Base RentAmericas(in thousands) Megawatts per Kilowatt0-1 MW$37,131 10.6  $293> 1 MW 82,706 44.2   156Other(1) 142 —   —Total$119,980 54.8  $182       EMEA(2)      0-1 MW$42,149 13.0  $269> 1 MW 4,999 2.5   167Other(1) 21 —   —Total$47,168 15.5  $253       Asia Pacific(2)      0-1 MW$8,541 2.5  $286> 1 MW 12,141 6.2   165Other(1) 170 —   —Total$20,851 8.6  $199       All Regions(2)      0-1 MW$87,821 26.1  $280> 1 MW 99,846 52.9   157Other(1) 332 —   —Total$187,999 79.0  $198       Interconnection$20,497 N/A  N/A       Grand Total at DLR Share$208,495 79.0  $198       Grand Total at 100% Share$306,944 129.8  $183 Note: Totals may not foot due to rounding differences.

(1)   Other includes Powered Base Building® shell capacity as well as storage and office space within fully improved data center facilities.

(2)   Based on quarterly average exchange rates during the three months ended June 30, 2026.

Investment Activity

During the second quarter of 2026, Digital Realty acquired:

Land in Marseille, France for approximately €46.5 million, or $53.1 million, that is expected to support the development of up to 48 megawatts of IT capacity.Land in the Atlanta metro area for approximately $20 million. Together with an adjacent parcel that was acquired in the first quarter, this campus is expected to support over one gigawatt of IT capacity. As previously announced, during the quarter, Digital Realty also acquired:

Land in the Kansas City metro area for approximately $475 million to support hyperscale data center development for up to two gigawatts of utility power.Two data centers in Malaysia containing 16.5 megawatts of IT capacity, and a land parcel that is expected to support the development of up to 14 megawatts of IT capacity, for total consideration of approximately $134 million. A 64% stake in three fully leased data centers in Northern Virginia containing 288 megawatts of IT capacity, at a gross value of approximately $7.8 billion, reflecting an expected initial stabilized cap rate of over 6.5%. The newly developed assets are expected to be fully stabilized in the first half of 2027 and first half of 2028. Total consideration for our joint venture partners’ equity interest in the assets was approximately $3.5 billion, including $1.2 billion of cash and 12.3 million shares of Digital Realty common stock. As previously disclosed, during the quarter, Digital Realty sold a non-core asset in the Atlanta metro area for $24 million.

Balance Sheet

Digital Realty had approximately $18.6 billion of total debt outstanding as of June 30, 2026, comprised of $17.0 billion of unsecured debt and approximately $1.6 billion of secured debt and other debt. At the end of the second quarter of 2026, net debt-to-Adjusted EBITDA was 4.7x, debt-plus-preferred-to-total enterprise value was 22.3% and fixed charge coverage was 5.2x.

From our first quarter earnings report on April 23, 2026 through June 30, 2026, the company sold approximately 6.2 million shares of common stock under its At-The-Market (ATM) equity issuance program at a weighted average price of $191.63 per share, for net proceeds of approximately $1.2 billion. Year-to-date, the company has sold approximately 13.5 million shares under its ATM equity issuance program at a weighted average price of $184.94 per share, for net proceeds of approximately $2.5 billion.

2026 Outlook

Digital Realty raised its 2026 Core FFO per share (excluding net promote) outlook to $8.15 - $8.20 and its 2026 Constant-Currency Core FFO per share (excluding net promote) outlook to $8.10 - $8.15. The assumptions underlying the outlook are summarized in the following table.

       As of As of As ofTop-Line and Cost StructureFebruary 5, 2026 April 23, 2026 July 23, 2026Total revenue (excluding promote income)$6.600 - $6.700 billion $6.650 - $6.750 billion $6.850 - $6.950 billionNet non-cash rent adjustments(1)($90 - $95 million) ($90 - $95 million) ($145 - $150 million)Adjusted EBITDA$3.600 - $3.700 billion $3.650 - $3.750 billion $3.750 - $3.850 billionG&A$610 - $620 million $615 - $625 million $620 - $630 million      Internal Growth     Rental rates on renewal leases     Cash basis6.0% - 8.0% 6.5% - 8.5% 9.0% - 11.0%GAAP basis8.5% - 10.5% 9.5% - 11.5% 12.0% - 14.0%Year-end portfolio occupancy(2)+50 - 100 bps +50 - 100 bps +75 - 125 bps"Same-Capital" cash NOI growth(3)4.0% - 5.0% 4.0% - 5.0% 4.25% - 5.25%      Foreign Exchange Rates     U.S. Dollar / Pound Sterling$1.30 - $1.35 $1.32 - $1.37 $1.32 - $1.37U.S. Dollar / Euro$1.13 - $1.18 $1.15 - $1.20 $1.13 - $1.18      External Growth     Dispositions / Joint Venture Capital     Dollar volume$500 - $1,000 million $500 - $1,000 million $1,000 - $1,500 millionCap rate0.0% - 10.0% 0.0% - 10.0% 0.0% - 10.0%Development     CapEx (Net of Partner Contributions)(4)$3,250 - $3,750 million $3,500 - $4,000 million $4,250 - $4,750 millionAverage stabilized yields10.0%+ 10.0%+ 10.0%+Enhancements and other non-recurring CapEx(5)$30 - $35 million $30 - $35 million $30 - $35 millionRecurring CapEx + capitalized leasing costs(6)$400 - $425 million $400 - $425 million $400 - $425 million      Balance Sheet     Long-term debt issuance     Dollar amount$1,000 - $1,500 million $1,500 - $2,000 million $1,500 - $2,000 millionPricing4.0% - 4.5% 4.0% - 4.5% 4.5% - 5.5%TimingMid-Year Mid-Year 2H-2026      Net income per diluted share$2.55 - $2.65 $2.65 - $2.75 $3.10 - $3.15Real estate depreciation and (gain) / loss on sale$4.90 - $4.90 $4.95 - $4.95 $5.30 - $5.30Funds From Operations / share (NAREIT-Defined)$7.45 - $7.55 $7.60 - $7.70 $8.40 - $8.45Non-core expenses and revenue streams$0.45 - $0.45 $0.40 - $0.40 $0.25 - $0.25Net Promote$0.0 - $0.0 $0.0 - $0.0 ($0.50) - ($0.50)Core Funds From Operations / share (excluding net promote)$7.90 - $8.00 $8.00 - $8.10 $8.15 - $8.20Foreign currency translation adjustments$0.00 - $0.00 ($0.05) - ($0.05) ($0.05) - ($0.05)Constant-Currency Core FFO / share (excluding net promote)$7.90 - $8.00 $7.95 - $8.05 $8.10 - $8.15 (1)   Net non-cash rent adjustments represent the sum of straight-line rental revenue and straight-line rental expense, as well as the amortization of above- and below-market leases (i.e., ASC 805 adjustments).
(2)   Year-end portfolio occupancy guidance based on IT load (kW).
(3)   The “Same-Capital” pool includes properties owned as of December 31, 2024 with less than 5% of total rentable square feet under development. It excludes properties that were undergoing, or were expected to undergo, development activities in 2025-2026, properties classified as held for sale and contribution, and properties sold or contributed to joint ventures for all periods presented. The 2026 “Same-Capital” cash NOI growth outlook is presented on a constant currency basis.
(4)   Excludes land acquisitions and includes Digital Realty’s share of joint venture and fund contributions. Figure is net of joint venture and fund partners’ share of contributions.
(5)   Other non-recurring CapEx represents costs incurred to enhance the capacity or marketability of operating properties, such as network fiber initiatives and software development costs.
(6)   Recurring CapEx represents non-incremental improvements required to maintain current revenues, including second-generation tenant improvements and leasing commissions.

Note: The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items, and the information is not available without unreasonable effort. Please see Non-GAAP Financial Measures in this document for further discussion.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures, including FFO, Core FFO, Core FFO (excluding net promote), Constant Currency Core FFO (excluding net promote), Adjusted FFO, Net Operating Income (NOI), “Same-Capital” Cash NOI and Adjusted EBITDA. A reconciliation from U.S. GAAP net income available to common stockholders to FFO, a reconciliation from FFO to Core FFO, a reconciliation from Core FFO (excluding net promote) to Constant Currency Core FFO (excluding net promote), a reconciliation from Core FFO to Adjusted FFO, a reconciliation from NOI to Cash NOI, and definitions of FFO, Core FFO, Constant Currency Core FFO, Core FFO (excluding net promote), Adjusted FFO, NOI and “Same-Capital” Cash NOI are included as an attachment to this document. A reconciliation from U.S. GAAP net income available to common stockholders to Adjusted EBITDA, a definition of Adjusted EBITDA and definitions of net debt-to-Adjusted EBITDA, debt-plus-preferred-to-total enterprise value, cash NOI, and fixed charge coverage ratio are included as an attachment to this document.

The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, external growth factors, such as dispositions, and balance sheet items such as debt issuances, that have not yet occurred, are out of the company's control and/or cannot be reasonably predicted. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Investor Conference Call

Prior to Digital Realty’s investor conference call at 5:00 p.m. ET / 4:00 p.m. CT on July 23, 2026, a presentation will be posted to the Investors section of the company’s website at https://investor.digitalrealty.com. The presentation is designed to accompany the discussion of the company’s second quarter 2026 financial results and operating performance. The conference call will feature President & Chief Executive Officer Andy Power and Chief Financial Officer Matt Mercier.

A live webcast of the call will be available on the Investors section of Digital Realty’s website at https://investor.digitalrealty.com. The webcast will be archived for one year and the replay will be available shortly after the conclusion of the live event.

About Digital Realty

Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data meeting place and a proven Pervasive Datacenter Architecture (PDx®) solution methodology for powering innovation, from cloud and digital transformation to emerging technologies like artificial intelligence (AI), and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected data communities that matter to them with a global data center footprint of 300+ facilities in 55+ metros across 30+ countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and X.

Contact Information

Matt Mercier
Chief Financial Officer
Digital Realty

Jordan Sadler / Jim Huseby
Investor Relations
Digital Realty
[email protected]

Consolidated Quarterly Statements of Operations
Unaudited and in Thousands, Except Per Share Data
                    Second Quarter 2026 Three Months Ended
   Six Months Ended  30-Jun-26  31-Mar-26   31-Dec-25   30-Sep-25  30-Jun-25    30-Jun-26   30-Jun-25 Rental revenues$1,145,936  $1,103,946   $1,074,703   $1,045,708  $1,003,550    $2,249,882   $1,964,076 Tenant reimbursements - Utilities352,897  333,909   356,084   332,681  294,503    686,807   565,692 Tenant reimbursements - Other45,391  38,093   34,406   37,302  37,355    83,484   79,532 Interconnection and other130,409  124,278   123,414   120,399  121,952    254,687   234,921 Fee income248,927  34,899   45,692   36,398  34,427    283,826   55,070 Other480  47   372   4,746  1,363    527   1,496 Total Operating Revenues$1,924,040  $1,635,173   $1,634,671   $1,577,234  $1,493,150    $3,559,213   $2,900,787                           Utilities$396,454  $372,385   $398,185   $375,627  $339,288    $768,839   $652,673 Rental property operating291,408  266,115   295,948   278,292  267,724    557,523   506,324 Property taxes55,160  54,964   50,791   51,823  49,570    110,124   98,426 Insurance4,744  4,799   4,711   4,508  4,946    9,543   9,429 Depreciation and amortization507,106  499,511   493,458   497,002  461,167    1,006,617   904,176 General and administration153,316  151,923   159,283   139,911  133,755    305,239   254,867 Severance, equity acceleration and legal expenses4,384  2,835   4,937   1,794  2,262    7,219   4,690 Transaction and integration expenses38,703  15,685   36,083   86,559  22,546    54,388   62,448 Provision for impairment—  —   78,553   —  —    —   — Other expenses13,508  23   98   3,297  195    13,531   307 Total Operating Expenses $1,464,783   $1,368,240    $1,522,047    $1,438,813   $1,281,453     $2,833,023    $2,493,340                           Operating income before gain (loss) on disposition of properties, net $459,257   $266,933    $112,624    $138,420   $211,698     $726,190    $407,447 Gain (loss) on disposition of properties, net7,988  873   42,865   19,780  931,830    8,861   932,941 Operating Income $467,245   $267,806    $155,489    $158,200   $1,143,527     $735,051    $1,340,388                           Equity in earnings (loss) of unconsolidated entities36  (1,833)  4,659   (16,944) (12,062)   (1,797)  (19,702)Interest and other income (expense), net137,944  45,342   42,797   47,735  37,747    183,286   70,520 Interest (expense)(113,943) (116,384)  (116,516)  (113,584) (109,383)   (230,327)  (207,847)Income tax benefit (expense)(33,675) (16,008)  9,673   (11,695) (12,883)   (49,683)  (30,018)Gain (loss) on debt extinguishment and modifications—  (4,119)  9   —  —    (4,119)  — Net Income$457,607   $174,804    $96,111     $63,713   $1,046,946     $632,411    $1,153,341                           Net (income) loss attributable to noncontrolling interests(4,318) 4,470   2,536   4,099  (14,790)   152   (11,211)Net Income Attributable to Digital Realty Trust, Inc.$453,289   $179,274     $98,647    $67,812   $1,032,156     $632,563    $1,142,130                           Preferred stock dividends(10,181) (10,181)  (10,181)  (10,181) (10,181)   (20,362)  (20,362)Net Income (Loss) Available to Common Stockholders$443,108   $169,093    $88,466     $57,631   $1,021,975     $612,201    $1,121,768                           Weighted-average shares outstanding - basic354,118  345,013   343,493   341,370  337,589    349,591   337,139 Weighted-average shares outstanding - diluted361,542  353,255   351,570   349,234  345,734    357,355   345,305 Weighted-average fully diluted shares and units367,605  359,300   357,430   355,165  351,691    363,462   351,239                           Net income / (loss) per share - basic$1.25  $0.49   $0.26   $0.17  $3.03    $1.75   $3.33 Net income / (loss) per share - diluted$1.21  $0.46   $0.24   $0.15  $2.94    $1.68   $3.21  Funds From Operations and Core Funds From Operations
Unaudited and in Thousands, Except Per Share Data
     Second Quarter 2026
  Three Months Ended
 Six Months Ended
 Reconciliation of Net Income to Funds From Operations (FFO)  30-Jun-26  31-Mar-26   31-Dec-25   30-Sep-25   30-Jun-25    30-Jun-26   30-Jun-25                              Net Income (Loss) Available to Common Stockholders  $443,108  $169,093   $88,466   $57,631   $1,021,975    $612,201   $1,121,768 Adjustments:                            Noncontrolling interest in operating partnership  9,000  4,000   2,000   2,000   21,000    13,000   24,000 Real Estate Related Depreciation and Amortization(1)  499,106  490,965   484,260   487,182   451,050    990,071   883,700 Reconciling items related to noncontrolling interests  (24,292) (23,726)  (22,753)  (22,888)  (21,038)   (48,018)  (40,518)Unconsolidated entities real estate related depreciation and amortization  62,972  60,291   70,260   65,922   59,172    123,263   115,033 (Gain) loss on real estate transactions  (7,988) (226)  (42,865)  (19,780)  (931,830)   (8,214)  (932,941)Provision for impairment  —  —   78,553   —   —    —   — Funds From Operations  $981,906  $700,398   $657,921   $570,067   $600,329    $1,682,303   $1,171,044                              Weighted-average shares and units outstanding - basic  360,181  351,059   349,354   347,301   343,546    355,698   343,073 Weighted-average shares and units outstanding - diluted(2) (3)  367,605  359,300   357,430   355,165   351,691    363,462   351,239                              Funds From Operations per share - basic  $2.73  $2.00   $1.88   $1.64   $1.75    $4.73   $3.41                              Funds From Operations per share - diluted(2) (3)  $2.73  $1.99   $1.89   $1.65   $1.75    $4.73   $3.42                              Reconciliation of FFO to Core FFO  30-Jun-26  31-Mar-26   31-Dec-25   30-Sep-25   30-Jun-25    30-Jun-26   30-Jun-25                              Funds From Operations  $981,906  $700,398   $657,921   $570,067   $600,329    $1,682,303   $1,171,044 Other non-core revenue adjustments(4)  (80,837) (29)  (10,633)  (4,746)  4,228    (80,866)  2,303 Transaction and integration expenses  38,703  15,685   36,083   86,559   22,546    54,388   62,448 Gain (loss) on debt extinguishment and modifications  —  4,119   (9)  —   —    4,119   — Severance, equity acceleration and legal expenses(5)  4,384  2,835   4,937   1,794   2,262    7,219   4,690 (Gain) loss on FX and derivatives revaluation  (1,608) (4,398)  (16,295)  252   8,827    (6,006)  6,764 Other non-core expense adjustments(6)  13,208  (2,538)  (21,794)  2,075   5,092    10,670   4,390 Core Funds From Operations  $955,756  $716,071   $650,210   $656,001   $643,284    $1,671,827   $1,251,639                              Net promote  (187,871) —   —   —   —    (187,871)  —                              Core Funds From Operations (excluding net promote)  $767,885  $716,071   $650,210   $656,001   $643,284    $1,483,956   $1,251,639                              Weighted-average shares and units outstanding - diluted(2) (3)  360,648  351,293   349,740   347,700   343,909    356,113   343,436                              Core Funds From Operations per share - diluted(2)  $2.65  $2.04   $1.86   $1.89   $1.87    $4.69   $3.64                              Core FFO per share (excluding net promote) - diluted(2)  $2.13  $2.04   $1.86   $1.89   $1.87    $4.17   $3.64                              (1)   Real Estate Related Depreciation & Amortization  30-Jun-26  31-Mar-26   31-Dec-25   30-Sep-25   30-Jun-25    30-Jun-26   30-Jun-25                              Depreciation and amortization per income statement  $507,106  $499,511   $493,458   $497,002   $461,167    $1,006,617   $904,175 Non-real estate depreciation  (8,000) (8,546)  (9,198)  (9,820)  (10,117)   (16,546)  (20,473)Real Estate Related Depreciation & Amortization  $499,106  $490,965   $484,259   $487,182   $451,050    $990,071   $883,702  (2)  Certain of Teraco's minority indirect shareholders have the right to put their shares in an upstream parent company of Teraco to Digital Realty in exchange for cash or the equivalent value of shares of Digital Realty common stock, or a combination thereof. U.S. GAAP requires Digital Realty to assume the put right is settled in shares for purposes of calculating diluted EPS. This same approach was utilized to calculate FFO/share. The potential future dilutive impact associated with this put right will be excluded from Core FFO and AFFO until settlement occurs – causing diluted share count to be higher for FFO than for Core FFO and AFFO. When calculating diluted FFO, Teraco related noncontrolling interest is added back to the FFO numerator as the denominator assumes all shares have been put back to Digital Realty.

                      Three Months Ended  Six Months Ended 30-Jun-26  31-Mar-26  31-Dec-25  30-Sep-25  30-Jun-25   30-Jun-26  30-Jun-25Teraco noncontrolling share of FFO$19,979  $15,410  $18,240  $17,018  $15,850   $35,389  $29,136Teraco related minority interest$19,979  $15,410  $18,240  $17,018  $15,850   $35,389  $29,136 (3)  For all periods presented, we have excluded the effect of dilutive series J, series K and series L preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of FFO and the share count detail section that follows the reconciliation of Core FFO to AFFO for calculations of weighted average common stock and units outstanding. For definitions and discussion of FFO, Core FFO and Core FFO (excluding net promote), see the Definitions section.

(4)  Includes development fees included in gains, lease termination fees, gain on sale of equity investment included in other income, insurance proceeds related to property damage and unconsolidated entities non-core adjustments within equity in earnings.

(5)  Relates to severance and other charges related to the departure of company executives and integration-related severance.

(6)  Includes write-offs associated with non-recurring legal and insurance expenses, impact of foreign tax rate changes, non-core adjustments attributable to noncontrolling interests, impact on tax expense due to insurance proceeds related to property damage and adjustments to reflect our proportionate share of transaction costs associated with noncontrolling interests.

Adjusted Funds From Operations (AFFO)
 Unaudited and in Thousands, Except Per Share Data
                       Second Quarter 2026
  Three Months Ended
   Six Months Ended  Reconciliation of Core FFO to AFFO  30-Jun-26   31-Mar-26  31-Dec-25  30-Sep-25   30-Jun-25    30-Jun-26   30-Jun-25                             Core Funds From Operations   $955,756
   $716,071   $650,210   $656,001    $643,284     $1,671,827    $1,251,638  Adjustments:                           Non-real estate depreciation  8,000   8,546  9,198  9,820   10,117    16,546   20,473 Amortization of deferred financing costs  6,343   6,443  6,781  6,565   6,451    12,786   12,999 Amortization of debt discount/premium  1,595   1,581  1,341  1,293   1,251    3,176   2,377 Non-cash stock-based compensation expense  21,379   20,908  17,327  18,174   18,026    42,287   34,726 Straight-line rental revenue  (26,955)  (21,741) (34,351) (33,351)  (23,698)   (48,696)  (33,390)Straight-line rental expense  (602)  (1,410) (97) (271)  (475)   (2,012)  (635)Above- and below-market rent amortization  (962)  (1,007) (972) (864)  (752)   (1,969)  (1,458)Deferred tax (benefit) / expense  (12,681)  (10,919) (26,184) 18,187   (30,714)   (23,600)  (31,232)Leasing compensation and internal lease commissions  13,857   15,476  14,644  15,013   14,721    29,333   28,126 Recurring capital expenditures (1)  (76,674)  (59,665) (168,539) (77,998)  (62,083)   (136,339)  (97,388)                            Adjusted Funds From Operations (2)   $889,056    $674,283   $469,358   $612,569    $576,127     $1,563,339    $1,186,235                             Weighted-average shares and units outstanding - basic  360,181   351,059  349,354  347,301   343,546    355,698   343,073 Weighted-average shares and units outstanding - diluted (3)  360,648   351,293  349,740  347,700   343,909    356,113   343,436                             AFFO per share - diluted (3)  $2.47    $1.92   $1.34   $1.76    $1.68     $4.39    $3.45                               Dividends per share and common unit  $1.22   $1.22  $1.22  $1.22   $1.22    $2.44   $2.44                             Diluted AFFO Payout Ratio  49.5%   63.6%  90.9%  69.2%   72.8%    55.6%   70.6%    Three Months Ended   Six Months Ended Share Count Detail  30-Jun-26   31-Mar-26  31-Dec-25  30-Sep-25   30-Jun-25    30-Jun-26   30-Jun-25                             Weighted Average Common Stock and Units Outstanding  360,181   351,059  349,354  347,301   343,546    355,698   343,073 Add: Effect of dilutive securities  467   234  386  399   362    415   363 Weighted Avg. Common Stock and Units Outstanding - diluted  360,648   351,293  349,740  347,700   343,909    356,113   343,436  (1)  Recurring capital expenditures represent non-incremental building improvements required to maintain current revenues, including second-generation tenant improvements and external leasing commissions. Recurring capital expenditures do not include acquisition costs contemplated when underwriting the purchase of a building, costs which are incurred to bring a building up to Digital Realty’s operating standards, or internal leasing commissions.

(2)  For a definition and discussion of AFFO, see the Definitions section. For a reconciliation of net income (loss) available to common stockholders to FFO and Core FFO, see above.

(3)  For all periods presented, we have excluded the effect of dilutive series J, series K and series L preferred stock, as applicable, that may be converted into common stock upon the occurrence of specified change in control transactions as described in the articles supplementary governing the series J, series K and series L preferred stock, as applicable, which we consider highly improbable. See above for calculations of FFO and for calculations of weighted average common stock and units outstanding.

Consolidated Balance Sheets
 Unaudited and in Thousands, Except Per Share Data
              Second Quarter 2026
 30-Jun-26  31-Mar-26  31-Dec-25  30-Sep-25  30-Jun-25 Assets                   Investments in real estate:                   Real estate $33,700,303   $31,633,899   $31,359,298   $30,194,891   $29,836,218 Construction in progress 9,770,384   5,381,071   4,976,785   5,422,338   5,080,701 Land held for future development 122,841   199,681   91,130   66,668   73,665 Investments in Real Estate  $43,593,528    $37,214,651    $36,427,213    $35,683,897    $34,990,583 Accumulated depreciation and amortization (10,736,127)  (10,355,181)  (9,993,596)  (9,665,380)  (9,341,719)Net Investments in Properties  $32,857,401    $26,859,470    $26,433,617    $26,018,517    $25,648,865 Investment in unconsolidated entities 3,548,297   3,536,757   3,427,903   3,690,749   3,622,677 Net Investments in Real Estate  $36,405,698    $30,396,227    $29,861,520    $29,709,266    $29,271,542                     Operating lease right-of-use assets, net $1,093,015   $1,105,080   $1,135,645   $1,167,398   $1,180,657 Cash and cash equivalents 1,864,796   2,426,631   3,451,647   3,299,703   3,554,126 Accounts and other receivables, net (1) 1,564,955   1,430,242   1,358,895   1,496,105   1,586,146 Deferred rent, net 792,045   765,198   750,907   710,624   681,375 Goodwill 9,592,127   9,591,250   9,711,953   9,647,754   9,636,513 Customer relationship value, deferred leasing costs and other intangibles, net 2,595,046   2,053,368   2,134,698   2,080,898   2,171,318 Assets held for sale and contribution —   441,064   349,826   116,624   139,993 Other assets 610,232   650,913   655,377   500,262   493,325 Total Assets  $54,517,914    $48,859,973    $49,410,468    $48,728,634    $48,714,995                     Liabilities and Equity                   Global unsecured revolving credit facilities, net $709,756   $707,961   $899,090   $1,152,042   $567,699 Unsecured term loans, net 427,681   432,450   439,536   438,933   440,788 Unsecured senior notes, net of discount 15,906,794   16,013,977   16,194,441   15,808,565   16,641,367 Secured and other debt, net of discount 1,591,118   842,245   869,068   825,894   802,294 Operating lease liabilities 1,209,459   1,218,509   1,253,217   1,285,067   1,298,085 Accounts payable and other accrued liabilities 3,922,825   2,419,888   2,600,979   2,377,726   2,310,882 Deferred tax liabilities 1,124,899   1,093,955   1,124,724   1,151,374   1,137,305 Accrued dividends and distributions —   —   428,337   —   — Security deposits and prepaid rents 759,979   733,974   754,920   699,528   653,640 Obligations associated with assets held for sale and contribution —   —   182   283   1,089 Total Liabilities  $25,652,511    $23,462,959    $24,564,494    $23,739,412    $23,853,149                     Redeemable noncontrolling interests 886,249   1,594,718   1,498,975   1,535,972   1,505,889                     Equity                   Preferred Stock: $0.01 par value per share, 110,000 shares authorized:                   Series J Cumulative Redeemable Preferred Stock (2) $193,540   $193,540   $193,540   $193,540   $193,540 Series K Cumulative Redeemable Preferred Stock (3) 203,264   203,264   203,264   203,264   203,264 Series L Cumulative Redeemable Preferred Stock (4) 334,886   334,886   334,886   334,886   334,886 Common Stock: $0.01 par value per share, 502,000 shares authorized (5) 3,669   3,459   3,406   3,400   3,374 Additional paid-in capital 34,160,613   30,093,165   29,350,487   29,182,332   28,720,826 Dividends in excess of earnings (6,939,476)  (6,946,676)  (6,690,722)  (6,358,501)  (5,997,607)Accumulated other comprehensive loss, net (522,024)  (512,885)  (469,198)  (533,891)  (543,756)Total Stockholders' Equity  $27,434,472    $23,368,753    $22,925,663    $23,025,030    $22,914,527                     Noncontrolling Interests                   Noncontrolling interest in operating partnership $533,620   $426,853   $415,456   $420,280   $431,000 Noncontrolling interest in consolidated entities 11,062   6,690   5,880   7,940   10,430                     Total Noncontrolling Interests  $544,682    $433,543    $421,336    $428,220    $441,430                     Total Equity  $27,979,154    $23,802,296    $23,346,999    $23,453,250    $23,355,957                     Total Liabilities and Equity  $54,517,914    $48,859,973    $49,410,468    $48,728,634    $48,714,995  (1)  Net of allowance for doubtful accounts of $73,428 and $80,832 as of June 30, 2026 and June 30, 2025, respectively.

(2)  Series J Cumulative Redeemable Preferred Stock, 5.250%, $200,000 liquidation preference ($25.00 per share), 8,000 shares issued and outstanding as of June 30, 2026 and June 30, 2025.

(3)  Series K Cumulative Redeemable Preferred Stock, 5.850%, $210,000 liquidation preference ($25.00 per share), 8,400 shares issued and outstanding as of June 30, 2026 and June 30, 2025.

(4)  Series L Cumulative Redeemable Preferred Stock, 5.200%, $345,000 liquidation preference ($25.00 per share), 13,800 shares issued and outstanding as of June 30, 2026 and June 30, 2025.

(5)  Common Stock: 370,010 and 340,372 shares issued and outstanding as of June 30, 2026 and June 30, 2025, respectively.

Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization and Financial Ratios      Unaudited and Dollars in Thousands                  Second Quarter 2026  Three Months Ended Reconciliation of Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA) (1) 30-Jun-26   31-Mar-26   31-Dec-25   30-Sep-25   30-Jun-25                     Net Income (Loss) Available to Common Stockholders $443,108    $169,093     $88,466    $57,631    $1,021,975 Interest expense 113,943   116,384   116,516   113,584   109,383 (Gain) loss on debt extinguishment and modifications —   4,119   (9)  —   — Income tax expense (benefit) 33,675   16,008   (9,673)  11,695   12,883 Depreciation and amortization 507,106   499,511   493,458   497,002   461,167 EBITDA  $1,097,832    $805,115    $688,758    $679,912    $1,605,408 Unconsolidated JV real estate related depreciation and amortization 62,972   60,291   70,260   65,922   59,172 Unconsolidated JV interest expense and tax expense 37,142   35,814   38,498   44,795   31,243 Severance, equity acceleration and legal expenses 4,384   2,835   4,937   1,794   2,262 Transaction and integration expenses 38,703   15,685   36,083   86,559   22,546 (Gain) loss on disposition of properties, net (7,988)  (873)  (42,865)  (19,780)  (931,830)Provision for impairment —   —   78,553   —   — Other non-core adjustments, net (2) (82,084)  (4,270)  (25,033)  2,523   9,545 Net promote     —   —   —   — Noncontrolling interests 4,318   (4,470)  (2,536)  (4,099)  14,790 Preferred stock dividends 10,181   10,181   10,181   10,181   10,181 Adjusted EBITDA  $977,589    $920,307    $856,836    $867,807    $823,319  (1)  For definitions and discussion of EBITDA and Adjusted EBITDA, see the Definitions section.

(2)  Includes foreign exchange remeasurement (gain) loss, net, impact of foreign tax rate changes, non-recurring legal and insurance expenses, lease termination fees, insurance proceeds related to property damage and similar adjustments on unconsolidated entities.

           Three Months EndedFinancial Ratios30-Jun-26 31-Mar-26 31-Dec-25 30-Sep-25 30-Jun-25          Total GAAP interest expense$113,943  $116,384  $116,516  $113,584  $109,383 Capitalized interest expense 37,102   35,637   34,783   32,923   29,393 Change in accrued interest and other non-cash amounts (104,924)  30,268   (52,014)  41,265   (92,065)Cash Interest Expense(3)$46,121  $182,289  $99,285  $187,772  $46,711           Preferred stock dividends 10,181   10,181   10,181   10,181   10,181 Total Fixed Charges(4)$161,226  $162,202  $161,479  $156,687  $148,957                     Coverage         Interest coverage ratio(5)5.5x 5.2x 4.8x 4.9x 5.0xCash interest coverage ratio(6)13.2x 4.4x 6.8x 3.9x 11.2xFixed charge coverage ratio(7)5.2x 4.9x 4.5x 4.6x 4.7xCash fixed charge coverage ratio(8)11.6x 4.2x 6.3x 3.8x 9.9x          Leverage         Debt to total enterprise value(9)(10) 21.4%  21.7%  25.1%  23.0%  23.2%Debt-plus-preferred-stock-to-total-enterprise-value(10)(11) 22.3%  22.7%  26.1%  23.9%  24.1%Pre-tax income to interest expense(12)5.0x 2.5x 1.8x 1.6x 10.6xNet Debt-to-Adjusted EBITDA(13)4.7x 4.7x 4.9x 4.9x 5.1x (3)  Cash interest expense is interest expense less amortization of debt discount and deferred financing fees and includes interest that we capitalized. We consider cash interest expense to be a useful measure of interest as it excludes non-cash-based interest expense.

(4)  Fixed charges consist of GAAP interest expense, capitalized interest, scheduled debt principal payments and preferred stock dividends.

(5)  Adjusted EBITDA (including our pro rata share of unconsolidated entities EBITDA), divided by GAAP interest expense plus capitalized interest (including our pro rata share of unconsolidated entities interest expense).

(6)  Adjusted EBITDA (including our pro rata share of unconsolidated entities EBITDA), divided by cash interest expense (including our pro rata share of unconsolidated entities interest expense).

(7)  Adjusted EBITDA (including our pro rata share of unconsolidated entities EBITDA), divided by fixed charges (including our pro rata share of unconsolidated entities fixed charges).

(8)  Adjusted EBITDA (including our pro rata share of unconsolidated entities EBITDA), divided by the sum of cash interest expense and preferred stock dividends (including our pro rata share of unconsolidated entities cash fixed charges).

(9)  Total debt divided by market value of common equity plus debt plus preferred stock.

(10)  Total enterprise value defined as market value of common equity plus debt plus preferred stock.

(11)  Same as (9), except numerator includes preferred stock.

(12)  Calculated as net income plus interest expense divided by GAAP interest expense.

(13)  Calculated as total debt at balance sheet carrying value, plus finance lease obligations, plus Digital Realty’s pro rata share of unconsolidated entities debt, less cash and cash equivalents (including Digital Realty’s pro rata share of unconsolidated entities cash) divided by the product of Adjusted EBITDA (including Digital Realty’s pro rata share of unconsolidated entities EBITDA), multiplied by four.

Definitions

Funds From Operations (FFO):
We calculate funds from operations, or FFO, in accordance with the standards established by the National Association of Real Estate Investment Trusts (Nareit) in the Nareit Funds From Operations White Paper - 2018 Restatement. FFO is a non-GAAP financial measure and represents net income (loss) available to common stockholders (computed in accordance with GAAP), excluding gain (loss) from the disposition of real estate assets, provision for impairment, real estate related depreciation and amortization (excluding amortization of deferred financing costs), our share of unconsolidated JV real estate related depreciation & amortization, net income attributable to noncontrolling interests in operating partnership and reconciling items related to noncontrolling interests. Management uses FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions and after adjustments for unconsolidated partnerships and joint ventures, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our financial condition and results from operations, the utility of FFO as a measure of our performance is limited. Other REITs may not calculate FFO in accordance with the Nareit definition and, accordingly, our FFO may not be comparable to other REITs’ FFO. FFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Core Funds from Operations (Core FFO) and Core FFO (excluding net promote):
We present core funds from operations, or Core FFO, as a supplemental operating measure because, in excluding certain items that do not reflect core revenue or expense streams, it provides a performance measure that, when compared year over year, captures trends in our core business operating performance. We calculate Core FFO by adding to or subtracting from FFO (i) other non-core revenue adjustments, (ii) transaction and integration expenses, (iii) gain (loss) on debt extinguishment and modifications, (iv) gain on / issuance costs associated with redeemed preferred stock, (v) severance, equity acceleration and legal expenses, (vi) gain/loss on FX and derivatives revaluation, and (vii) other non-core expense adjustments. We calculate Core FFO (excluding net promote) by adding to Core FFO the net impact of (i) promote income and (ii) promote expense (collectively “net promote”). Because certain of these adjustments have a real economic impact on our financial condition and results from operations, the utility of Core FFO and Core FFO (excluding net promote) as a measure of our performance is limited. Other REITs may calculate Core FFO and Core FFO (excluding net promote) differently than we do and accordingly, our Core FFO and Core FFO (excluding net promote) may not be comparable to other REITs’ Core FFO and Core FFO (excluding net promote). Core FFO and Core FFO (excluding net promote) should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

Adjusted Funds from Operations (AFFO):
We present adjusted funds from operations, or AFFO, as a supplemental operating measure because, when compared year over year, it assesses our ability to fund dividend and distribution requirements from our operating activities. We also believe that, as a widely recognized measure of the operations of REITs, AFFO will be used by investors as a basis to assess our ability to fund dividend payments in comparison to other REITs, including on a per share and unit basis. We calculate AFFO by adding to or subtracting from Core FFO (i) non-real estate depreciation, (ii) amortization of deferred financing costs, (iii) amortization of debt discount/premium, (iv) non-cash stock-based compensation expense, (v) straight-line rental revenue, (vi) straight-line rental expense, (vii) above- and below-market rent amortization, (viii) deferred tax expense / (benefit), (ix) leasing compensation and internal lease commissions, and (x) recurring capital expenditures. Other REITs may calculate AFFO differently than we do and, accordingly, our AFFO may not be comparable to other REITs’ AFFO. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance.

EBITDA and Adjusted EBITDA:
We believe that earnings before interest expense, gain (loss) on debt extinguishment and modifications, income tax expense (benefit), and depreciation and amortization, or EBITDA, and Adjusted EBITDA (as defined below), are useful supplemental performance measures because they allow investors to view our performance without the impact of non-cash depreciation and amortization or the cost of debt and, with respect to Adjusted EBITDA, (i) unconsolidated entities real estate related depreciation & amortization, (ii) unconsolidated entities interest expense and tax expense, (iii) severance, equity acceleration and legal expenses, (iv) transaction and integration expenses, (v) gain (loss) on sale / deconsolidation, (vi) provision for impairment, (vii) other non-core adjustments, net, (viii) noncontrolling interests, (ix) preferred stock dividends, (x) gain on / issuance costs associated with redeemed preferred stock and (xi) net promote. In addition, we believe EBITDA and Adjusted EBITDA are frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs. Because EBITDA and Adjusted EBITDA are calculated before recurring cash charges including interest expense and income taxes, exclude capitalized costs, such as leasing commissions, and are not adjusted for capital expenditures or other recurring cash requirements of our business, their utility as a measure of our performance is limited. Other REITs may calculate EBITDA and Adjusted EBITDA differently than we do and, accordingly, our EBITDA and Adjusted EBITDA may not be comparable to other REITs’ EBITDA and Adjusted EBITDA. Accordingly, EBITDA and Adjusted EBITDA should be considered only as supplements to net income computed in accordance with GAAP as a measure of our financial performance.

Net Operating Income (NOI) and Cash NOI:
Net operating income, or NOI, represents rental revenue, tenant reimbursement revenue and interconnection revenue less utilities expense, rental property operating expenses, property taxes and insurance expenses (as reflected in the statement of operations). NOI is commonly used by stockholders, company management and industry analysts as a measurement of operating performance of the company’s rental portfolio. Cash NOI is NOI less straight-line rents and above- and below-market rent amortization. Cash NOI is commonly used by stockholders, company management and industry analysts as a measure of property operating performance on a cash basis. Same-Capital Cash NOI represents data centers owned as of December 31, 2024 with less than 5% of total rentable square feet under development and excludes data centers that were undergoing, or were expected to undergo, development activities in 2025-2026, data centers classified as held for sale and contribution, and data centers sold or contributed to joint ventures for all periods presented (prior period numbers adjusted to reflect current same-capital pool). However, because NOI and cash NOI exclude depreciation and amortization and capture neither the changes in the value of our data centers that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our data centers, all of which have real economic effect and could materially impact our results from operations, the utility of NOI and cash NOI as measures of our performance is limited. Other REITs may calculate NOI and cash NOI differently than we do and, accordingly, our NOI and cash NOI may not be comparable to other REITs’ NOI and cash NOI. NOI and cash NOI should be considered only as supplements to net income computed in accordance with GAAP as measures of our performance.

Additional Definitions

GAAP refers to United States generally accepted accounting principles.

Net debt-to-Adjusted EBITDA ratio is calculated as total debt at balance sheet carrying value, plus finance lease obligations, plus Digital Realty’s pro rata share of unconsolidated entities debt, less cash and cash equivalents (including Digital Realty’s pro rata share of unconsolidated entities cash) divided by the product of Adjusted EBITDA (including Digital Realty’s pro rata share of unconsolidated entities EBITDA), multiplied by four.

Debt-plus-preferred-to-total enterprise value is total debt plus preferred stock divided by total debt plus the liquidation value of preferred stock and the market value of outstanding Digital Realty Trust, Inc. common stock and Digital Realty Trust, L.P. units, assuming the redemption of Digital Realty Trust, L.P. units for shares of Digital Realty Trust, Inc. common stock.

Fixed charge coverage ratio is Adjusted EBITDA divided by the sum of GAAP interest expense, capitalized interest and preferred stock dividends. For the quarter ended June 30, 2026, GAAP interest expense was $114 million, capitalized interest was $37 million and preferred stock dividends were $10 million.

           Reconciliation of Net Operating Income (NOI)Three Months Ended  Six Months Ended(in thousands)30-Jun-26 31-Mar-26 30-Jun-25  30-Jun-26 30-Jun-25           Operating income before gain (loss) on disposition of properties, net$459,257  $266,933  $211,698   $726,190  $407,447            Fee income (248,927)  (34,899)  (34,427)   (283,826)  (55,070)Other income (480)  (47)  (1,363)   (527)  (1,496)Depreciation and amortization 507,106   499,511   461,167    1,006,617   904,176 General and administrative 153,316   151,923   133,755    305,239   254,867 Severance, equity acceleration and legal expenses 4,384   2,835   2,262    7,219   4,690 Transaction and integration expenses 38,703   15,685   22,546    54,388   62,448 Provision for impairment —   —   —    —   — Other expenses 13,508   23   195    13,531   307            Net Operating Income$926,867  $901,963  $795,832   $1,828,831  $1,577,368                       Cash Net Operating Income (Cash NOI)                     Net Operating Income$926,867  $901,963  $795,832   $1,828,831  $1,577,368            Straight-line rental revenue (26,955)  (21,813)  (24,015)   (48,767)  (33,708)Straight-line rental expense (617)  (1,423)  (469)   (2,040)  (445)Above- and below-market rent amortization (962)  (1,007)  (752)   (1,969)  (1,458)           Cash Net Operating Income$898,333  $877,720  $770,595   $1,776,055  $1,541,757                                  Constant Currency Core FFO (Excluding Net Promote) ReconciliationThree Months Ended  Six Months Ended(in thousands, except per share data)30-Jun-26   30-Jun-25  30-Jun-26 30-Jun-25           Core FFO (Excluding Net Promote)(1)$767,885    $643,284   $1,483,956  $1,251,639 Core FFO impact of holding '25 Exchange Rates Constant(2) (7,720)    —    (34,138)  —            Constant Currency Core FFO (Excluding Net Promote)$760,165    $643,284   $1,449,818  $1,251,639 Weighted-average shares and units outstanding - diluted 360,648     343,909    356,113   343,436 Constant Currency Core FFO Per Share (Excluding Net Promote)$2.11    $1.87   $4.07  $3.64  1)  As reconciled to net income above.

2)  Adjustment calculated by holding currency translation rates for 2026 constant with average currency translation rates that were applicable to the same periods in 2025.

This document contains forward-looking statements within the meaning of the federal securities laws, which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. Such forward-looking statements include statements relating to: our economic outlook, our expected investment and expansion activity, anticipated continued demand for our products and service, our liquidity, our joint ventures, supply and demand for data center and colocation capacity, our acquisition and disposition activity, pricing and net effective leasing economics, market dynamics and data center fundamentals, our strategic priorities, our product offerings, available inventory, rent from leases that have been signed but have not yet commenced and other contracted rent to be received in future periods, rental rates on future leases, lag between signing and commencement, cap rates and yields, investment activity, the company’s FFO, Core FFO, constant currency Core FFO, Core FFO (excluding net promote), adjusted FFO, adjusted EBITDA, net income, 2026 outlook and underlying assumptions, information related to trends, our strategy and plans, leasing expectations, weighted average lease terms, the exercise of lease extensions, lease expirations, debt maturities, annualized rent at expiration of leases, the effect new leases and increases in rental rates will have on our rental revenue, our credit ratings, construction and development activity and plans, projected construction costs, estimated yields on investment, expected occupancy, expected square footage and IT load capacity upon completion of development projects, backlog NOI, NAV components, and other forward-looking financial data. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. Such statements are subject to risks, uncertainties and assumptions and are not guarantees of future performance and may be affected by known and unknown risks, trends, uncertainties, and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected. Some of the risks and uncertainties that may cause our actual results, performance, or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

reduced demand for data centers or decreases in information technology spending;decreased rental rates, increased operating costs or increased vacancy rates;increased competition or available supply of data center capacity;the suitability of our data centers and data center infrastructure, delays or disruptions in connectivity or availability of power, or failures or breaches of our physical and information security infrastructure or services;breaches of our obligations or restrictions under our contracts with our customers;our inability to successfully develop and lease new properties and development capacity, and delays or unexpected costs in development of properties;the impact of current global and local economic, credit and market conditions;increased tariffs, global supply chain or procurement disruptions, or increased supply chain costs;the impact from periods of heightened inflation on our costs, such as operating and general and administrative expenses, interest expense and real estate acquisition and construction costs;the impact on our customers’ and our suppliers’ operations during an epidemic, pandemic, or other global events;our dependence upon significant customers, bankruptcy or insolvency of a major customer or a significant number of smaller customers, or defaults on or non-renewal of leases by customers;changes in political conditions, geopolitical turmoil, political instability, civil disturbances, restrictive governmental actions or nationalization in the countries in which we operate;our inability to retain data center capacity that we lease or sublease from third parties;information security, cyberattacks, security breaches and data privacy breaches;difficulties managing an international business and acquiring or operating properties in foreign jurisdictions and unfamiliar metropolitan areas;our failure to realize the intended benefits from, or disruptions to our plans and operations or unknown or contingent liabilities related to, our recent and future acquisitions;our failure to successfully integrate and operate acquired or developed properties or businesses;difficulties in identifying properties to acquire and completing acquisitions;risks related to joint venture investments, including as a result of our lack of control of such investments;risks associated with using debt to fund our business activities, including re-financing and interest rate risks, our failure to repay debt when due, adverse changes in our credit ratings or our breach of covenants or other terms contained in our loan facilities and agreements;our failure to obtain necessary debt and equity financing, and our dependence on external sources of capital;financial market fluctuations and changes in foreign currency exchange rates;adverse economic or real estate developments in our industry or the industry sectors that we sell to, including risks relating to decreasing real estate valuations and impairment charges and goodwill and other intangible asset impairment charges;our inability to manage our growth effectively;losses in excess of our insurance coverage;our inability to attract and retain talent;environmental liabilities, risks related to natural disasters and our inability to achieve our sustainability goals;the expected operating performance of anticipated near-term acquisitions and descriptions relating to these expectations;our inability to comply with rules and regulations applicable to our company;Digital Realty Trust, Inc.’s failure to maintain its status as a REIT for U.S. federal income tax purposes;Digital Realty Trust, L.P.’s failure to qualify as a partnership for U.S. federal income tax purposes;restrictions on our ability to engage in certain business activities;changes in local, state, federal and international laws and regulations, including related to taxation, real estate and zoning laws, and increases in real property tax rates; andthe impact of any financial, accounting, legal or regulatory issues or litigation that may affect us. The risks included here are not exhaustive, and additional factors could adversely affect our business and financial performance. Several additional material risks are discussed in our annual report on Form 10-K for the year ended December 31, 2025, and other filings with the U.S. Securities and Exchange Commission. Those risks continue to be relevant to our performance and financial condition. Moreover, we operate in a competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise. Digital Realty, Digital Realty Trust, the Digital Realty logo, Interxion, Turn-Key Flex, Powered Base Building, ServiceFabric, AnyScale Colo, Pervasive Data Center Architecture, PlatformDIGITAL, PDx, Data Gravity Index and Data Gravity Index DGx are registered trademarks and service marks of Digital Realty Trust, Inc. in the United States and/or other countries. All other names, trademarks and service marks are the property of their respective owners.

Key Takeaways Gilead raised 2026 HIV sales growth guidance to about 8% on strong HIV performance and Yeztugo guidance.GILD and Merck reported positive phase III data for a once-weekly oral HIV regimen supporting filings.Gilead expects no major HIV exclusivity losses until 2036 and sees up to seven new HIV therapies by 2033. Gilead Sciences, Inc. (GILD - Free Report) has a market-leading HIV franchise, led by flagship HIV therapies — Biktarvy for treatment and Descovy for prevention.

The company’s HIV business continues to maintain momentum, driven by solid performances of Biktarvy and Descovy, and incremental contributions from Yeztugo.

Biktarvy continues to be a dominant player in the HIV treatment market, holding more than 52% market share and retaining its position as the most prescribed therapy for both treatment-naïve and switch patients across major markets.

Gilead’s HIV pre-exposure prophylaxis (PrEP) portfolio comprises daily oral Descovy and the first and only twice-yearly injectable Yeztugo.

Descovy’s performance continues to be strong, primarily driven by higher demand and average realized price.

The approval of injectable lenacapavir, a first-in-class capsid inhibitor (under the brand name Yeztugo), has solidified GILD’s HIV portfolio. With a twice-yearly dosing schedule, the therapy offers meaningful adherence advantages over daily oral regimens and targets a broad patient population.

Driven by increased Yeztugo sales expectations and strong first-quarter HIV performance, Gilead now projects total 2026 HIV sales growth of approximately 8% year over year, up from its prior guidance of 6% issued in February.

Gilead continues to make efforts to strengthen its HIV portfolio further. The company has also collaborated with Merck (MRK - Free Report) to advance its HIV pipeline.

Gilead and Merck recently announced positive phase III results from the ISLEND-1 and ISLEND-2 studies evaluating their investigational once-weekly oral HIV regimen, islatravir plus lenacapavir. At week 48, the regimen was non-inferior to daily standard-of-care treatments, including Biktarvy, in maintaining virologic suppression and demonstrated a comparable safety profile with no new safety concerns. Patients receiving the once-weekly therapy also reported higher treatment satisfaction and lower treatment burden.

The data will support regulatory submissions for what could become the first once-weekly oral HIV treatment.

The FDA had earlier accepted Gilead’s new drug application for bictegravir/lenacapavir (BIC/LEN) for virologically suppressed people living with HIV under priority review, setting a target action date of Aug. 27, 2026.  A potential approval of BIC/LEN will further bolster its HIV portfolio.

With no significant loss-of-exclusivity (LOE) events expected until 2036, Gilead’s HIV franchise is well positioned for sustained long-term growth, supported by the potential launch of up to seven new HIV therapies by 2033.

Approval of additional treatments should strengthen its dominant HIV franchise.  

Competition for GILD’s HIV BusinessThe HIV treatment landscape is dominated by many bigwigs, such as GSK plc (GSK - Free Report) and Merck, apart from GILD.

HIV sales account for a major chunk of GSK’s Specialty Medicines portfolio. GSK continues to grow its HIV business, driven by strong patient demand for long-acting injectable medicines (Cabenuva and Apretude) and Dovato. The solid growth from these drugs has helped GSK combat the decline in Triumeq sales.

MRK markets doravirine for treating adults with HIV-1 in the United States, either as a monotherapy under the brand name Pifeltro or as part of the single-tablet combination regimen under the brand name Delstrigo (doravirine/lamivudine/tenofovir disoproxil fumarate).

MRK recently won FDA approval of Idvynso, a once-daily, two-drug single-tablet regimen containing doravirine (100 mg) and islatravir (0.25 mg), for adults living with HIV-1 who are virologically suppressed on a stable antiretroviral regimen. The approval covers patients with no history of treatment failure and no known resistance-associated mutations to doravirine, allowing them to switch from their current HIV therapy.

Merck is also evaluating a once-daily, oral, two-drug, single-tablet regimen of doravirine/islatravir [DOR/ISL (100 mg/0.25 mg)] in treatment-naïve adults with HIV-1 infection.

GILD’s Price Performance, Valuation and EstimatesShares of GILD have gained 6.2% year to date compared with the industry’s growth of 1.4%.

Image Source: Zacks Investment Research

Going by the price/earnings ratio, GILD’s shares currently trade at 25.56X forward earnings, higher than its mean of 14.92X and the large-cap pharma industry’s 17.29X.

Image Source: Zacks Investment Research

The bottom-line estimate for 2026 has deteriorated sharply over the past 60 days, shifting to a loss of 77 cents per share from projected earnings of 8 cents per share. The estimate for 2027 has moved north to $9.73 per share from $9.58 during the same period.

Image Source: Zacks Investment Research

While Gilead’s recent aggressive dealmaking strategy strengthens its long-term pipeline and growth potential, the sizable upfront payments and integration-related costs are pressuring near-term profitability.

Pinterest Inc (NYSE:PINS) heads into its second-quarter earnings report with a setup that looks a bit more favorable than it has in recent quarters, even as the fundamental debate about the stock remains unresolved, according to a new note from Jefferies.

The firm, which reiterated a Hold rating and $21 price target on Pinterest, modeled Q2 revenue in line with Street estimates of 15% year-over-year growth, though it sees room for upside toward the high end of the company's guidance range.

On an organic basis, Jefferies noted the Q2 revenue midpoint implies deceleration from 17% year-over-year growth to 13% year-over-year growth, even as the constant currency comp stays stable.

Looking ahead to the third quarter, Jefferies said Street estimates of 14% year-over-year revenue growth look achievable. The Street's Q3 forecast implies just 4% quarter-over-quarter growth, compared with 5% to 8% growth over the past three years, while ongoing tariff refunds could help support advertising budgets among importers.

Comps also ease through the rest of the year, with third and fourth quarter constant currency comps easing by roughly 100 basis points and 300 basis points, respectively.

On profitability, Jefferies expects third-quarter and full-year EBITDA margin guidance to stay in line with or be reiterated at 28% and 29%, respectively.

The firm characterized fiscal 2026 as an investment year for Pinterest, with elevated marketing and R&D spend weighing on margins, though it expects second-half margins to ramp seasonally and gross margin deleverage to peak in the second quarter.

Jefferies pointed out that the full-year EBITDA margin guidance of 29% includes roughly a 100 basis point drag from tvScientific, implying a stable organic EBITDA margin of around 30% year-over-year.

Despite the improved near-term setup and easier comps ahead, Jefferies said its core concerns about Pinterest haven't changed. The firm continues to question the durability of Pinterest's use case as artificial intelligence advances, along with its ability to monetize the platform through a scaled, high-performing direct response ad product.

Thermo Fisher Scientific Inc. (TMO) Q2 2026 Earnings Call July 23, 2026 8:30 AM EDT

Company Participants

Rafael Tejada - Vice President of Investor Relations
Marc Casper - Chairman & CEO
James Meyer - Senior VP & CFO

Conference Call Participants

Michael Ryskin - BofA Securities, Research Division
Tycho Peterson - Jefferies LLC, Research Division
Jack Meehan
Matthew Larew - William Blair & Company L.L.C., Research Division
Daniel Arias - Stifel, Nicolaus & Company, Incorporated, Research Division
Daniel Brennan - TD Cowen, Research Division
Patrick Donnelly - Citigroup Inc. Exchange Research
Luke Sergott - Barclays Bank PLC, Research Division

Presentation

Operator

Good morning, ladies and gentlemen, and welcome to the Thermo Fisher Scientific 2026 Second Quarter Conference Call. [Operator Instructions] I would like to introduce our moderator for the call, Mr. Rafael Tejada, Vice President, Investor Relations.

Mr. Tejada, you may begin the call.

Rafael Tejada
Vice President of Investor Relations

Good morning, and thank you for joining us. On the call with me today is Marc Casper, our Chairman and Chief Executive Officer; and Jim Meyer, Senior Vice President and Chief Financial Officer. Please note this call is being webcast live and will be archived on the Investors section of our website, thermofisher.com, under the heading News, Events and Presentations until October 20, 2026. A copy of the press release of our second quarter earnings is available in the Investors section of our website under the heading Financials. So before we begin, let me briefly cover our safe harbor statement.

Various remarks that we may make about the company's future expectations, plans and prospects constitute forward-looking statements within the meaning of applicable securities laws. Actual results may differ materially from those indicated by these forward-looking statements as a result of various risks and uncertainties, including those discussed in the company's most recent reports on Form 10-K and Form 10-Q

Lockheed Martin Corporation (LMT) Q2 2026 Earnings Call July 23, 2026 8:30 AM EDT

Company Participants

Mark Kvasnak - Vice President of Investor Relations
James Taiclet - Chairman, President & CEO
Evan Scott - Chief Financial Officer

Conference Call Participants

Scott Deuschle - Deutsche Bank AG, Research Division
Scott Mikus - Melius Research LLC
John Godyn - Citigroup Inc., Research Division
Gautam Khanna - TD Cowen, Research Division
Sheila Kahyaoglu - Jefferies LLC, Research Division
Robert Stallard - Vertical Research Partners, LLC
Matthew Akers - BNP Paribas, Research Division
Kristine Liwag - Morgan Stanley, Research Division
Gavin Parsons - UBS Investment Bank, Research Division

Presentation

Operator

Good day, and welcome, everyone, to the Lockheed Martin Second Quarter 2026 Earnings Results Conference Call. Today's call is being recorded. [Operator Instructions] At this time, for opening remarks and introductions, I would like to turn the call over to Mark Kvasnak, Vice President, Investor Relations. Please go ahead.

Mark Kvasnak
Vice President of Investor Relations

Thank you, Sarah, and good morning. I'd like to welcome everyone to our second quarter 2026 earnings conference call. Joining me today on the call are Jim Taiclet, our Chairman, President and Chief Executive Officer; and Evan Scott, our Chief Financial Officer. Statements made today that are not historical facts are considered forward-looking statements and are made pursuant to the safe harbor provisions of federal securities laws. Actual results may differ materially from those projected in the forward-looking statements.

Please see Lockheed Martin's SEC filings for a description of some of the factors that may cause actual results to differ materially from those in the forward-looking statements. We posted slides on our website today that we plan to address during the call to supplement our comments. These slides also include information regarding non-GAAP measures that may be used in today's call. Please access our website at www.lockheedmartin.com and click

yalax/iStock via Getty Images

Crown Castle (CCI) is becoming an interesting investment as a confluence of improved organic growth, reduced headwinds, and attractive valuation makes it potentially the most opportunistic it has been in a decade. However, there is simultaneously a massive unknown in the form of the terrestrial versus satellite debate. Scenario outcomes of this debate range from obsolescence of towers to getting a 4th major tower customer, making it the pivotal factor for the future of CCI.

We shall begin by discussing:

CCI’s strong 2Q26. Positive growth inflection. Opportunistic valuation. Then we will show that the market does not care about any of these factors as the satellite harbinger looms overhead.

If and when one can get a clear idea of where the satellite versus terrestrial debate will conclude, there could be tremendous opportunity in CCI stock.

CCI's Strong Quarter And Growth CCI had a strong quarter with upped AFFO guidance and an upward inflection in organic growth. A central point of their conference call was that 2026 was the trough of organic growth and that they see strong acceleration in the short, mid, and long term. Factors creating the upward inflection in growth are:

MLAs with visibility into near-term contractual growth. AT&T 600 megahertz spectrum closing. Mobile data usage is expected to double over 5 years. As more spectrum gets deployed and data usage increases, tower tenants will want more equipment installed on towers, which will come with increased rent to CCI.

Analyst consensus estimates show a very strong outlook for Crown Castle with AFFO/share expected to rise from $4.36 in 2025 to $6.05 in 2030.

S&P Global Market Intelligence

That growth rate is quite opportunistic relative to what is now a fairly cheap valuation.

CCI is trading at 16.7X 2026 AFFO.

Tower REITs have traditionally traded at AFFO multiples in the mid-20s and occasionally in the 30s.

We believe the now cheap valuation is the result of fear related to satellites as a potential competitor to macro towers. This can be clearly seen in the CCI trading action since the Space Exploration Technologies (SPCX) IPO.

CCI is down 18% even though the CCI-specific news has been positive in this period.

SA

SpaceX’s Starlink was already a potential threat to towers; the IPO merely made it front of mind for investors. In perception, it went from a potential future threat to being a highly visible part of one of the largest companies in the world.

On July 21st, SPCX launched an additional 24 satellites into its mega-constellation already consisting of over 10,000 low earth orbit satellites.

Starlink is unequivocally huge and powerful, but its impact on towers remains completely unknown.

The Pivotal Unknown I am not an engineer and do not have a full grasp on the subtleties in transmission that make satellites better or worse than a tower network. Thus, I can merely relay what I have heard from others who are more directly in the field.

The basic framework seems to be that satellites are great at covering massive areas inexpensively and reliably but perhaps less effective in highly congested areas.

Bears on the tower REITs worry that Starlink could be effective enough to disrupt the traditional cell carriers, which make up CCI’s tenant base.

Bulls believe Starlink or peer satellite companies could become a 4th major carrier and that they would use macro towers to supplement their satellites. Specifically, they would put equipment on macro towers in major population centers where towers tend to outperform and use satellites in rural areas. Thus, Starlink or peers could actually benefit the tower REIT industry in the form of an additional revenue source.

Christian Hillabrant is knowledgeable on the subject but also biased due to his role as CEO of CCI. He discussed satellites versus terrestrial networks at length on the 2Q26 call:

“Let me summarize the key reasons why we believe that terrestrial networks will continue to be an essential for mobile phone service based on reports available on the WIA website and analysis from sell-side research. First, satellite services generally require a clear line of sight to the sky and provide weaker indoor coverage, which is significant given approximately 90% of mobile usage occurs indoors or in vehicles. Because satellite signals travel hundreds of miles farther than the terrestrial connections, their signal strength is approximately 10,000x weaker, challenging performance in dense environments where buildings, obstructions and interference can further degrade the signal. To compensate for the weaker signal, phones must operate at higher transmit power levels, increasing battery consumption. Second, satellite operators have access to significantly less spectrum. Direct-to-device satellite services generally have access to only tens of megahertz of spectrum, while each major U.S. wireless carrier controls hundreds of megahertz. Third, a typical satellite beam covers approximately 100 square miles to 600 square miles versus roughly 3 square miles to 20 square miles for a terrestrial cell site, requiring substantially more users to share the same spectrum resources. This means that for every megahertz of spectrum, terrestrial cell sites can support 30x more users. More importantly, as satellite operators seek to improve capacity, mobility and indoor performance, we believe terrestrial infrastructure will become an increasingly important complement to satellite networks.”

I think there is merit to his analysis that satellites could be complementary to macro towers rather than a substitute. However, it remains a major unknown.

The return outlook of CCI as an investment is heavily impacted by what happens in this debate. We see 3 main branches of scenarios to consider:

Satellites do not materially enter the cell carrier business. Satellites compete and at least partially replace demand for towers. Satellites become carriers and use macro towers to complement their network. CCI is opportunistic in scenarios 1 and 3 but would likely underperform in scenario 2.

Scenario 1 would just be business as usual for tower REITs. This seems to be what the consensus AFFO estimates out to 2030 are penciling in. CCI’s 16.7X AFFO multiple is just too cheap relative to the AFFO/share growth rate, which would make it a strong investment.

Scenario 2 risks major damage in the form of CCI losing one or more of their 3 major tenants. If Starlink competes as a cell carrier and captures substantial market share, there is potential for Verizon, AT&T, or T-Mobile to go out of business, and CCI could lose massive amounts of rental revenue.

Scenario 3 would be Starlink or a peer competing in a more balanced way, taking some market share but not killing the existing ecosystem. A potential 4th tenant in this scenario would potentially add back the revenues that were previously lost when Sprint got absorbed.

I’m not going to pretend to know how this will all shake out. Instead, I’ll be focusing on data points that could serve as early indicators. Here is what we will be watching to potentially happen:

Starlink or peers signing leases with macro towers (good sign for CCI). The extent to which Starlink attempts to become a major cell carrier. Financial health of Verizon, AT&T, or T-Mobile deteriorating. Customer adoption of satellite-based cell service. Customer reviews of the quality of satellite-based cell service. How We Are Playing It Tower REITs are potentially quite opportunistic given high-growth relative to valuation, but given the unknown, they are also risky. We currently are underweight relative to the REIT index but hold a small position in American Tower (AMT). AMT and CCI are similar investments, but we give a slight edge to AMT for its ownership of CoreSite, through which it has access to strong data center growth.

As more information rolls in and we get greater clarity on the satellite versus terrestrial debate, we will be watching and trading accordingly.

How volatile are fuel markets this year?

Southwest Airlines hired a ship this spring to send jet fuel from Texas to California, where prices are much higher and concerns had grown about supply, Chief Financial Officer Tom Doxey told CNBC. It was a first for the Dallas airline.

"It brought like a week's supply to the West Coast at a time when when supply was most constricted ... when it was most at risk," Doxey said.

The ship, which left from Houston and went through the Panama Canal, arrived May 28 in Los Angeles and had about 12.6 million gallons aboard, Southwest said. For context, Southwest used 564 million gallons of jet fuel in the last quarter.

The West Coast is much more reliant on imports than other parts of the country. Jet fuel prices spiked and have been volatile since the U.S. and Israel struck Iran in February.

Southwest said Thursday that its fuel expenses were up nearly $900 million in the second quarter from last year.

For the shipment to California, the airline said it used a waiver of the Jones Act, a law from 1920 that requires shipments between U.S. ports to be carried on a U.S. ship. President Donald Trump waived that requirement in March as fuel prices were soaring in the weeks following the start of the Iran war and subsequent shipping snarls erupted in the Strait of Hormuz, a key channel.

Worries about supplies intensified as countries restricted exports this year, fearful of running low on fuel. Those concerns have since eased, a Southwest spokesman said.

Jet fuel is airlines' biggest expense after labor. Prices eased in late spring and early summer but rose again as tensions reignited with Iran this month.

Last week, United Airlines, which flies more internationally than any other U.S. carrier, said it is using the latest available fuel prices for its quarterly estimates because prices have been so volatile.

In its July 15 report, it said jet fuel increased $575 million, or a $1.12 hit to adjusted earnings per share, for the third quarter alone.

U.S. airlines have abandoned fuel hedges, which help them lock in costs through futures contracts, over the past decade or so as the U.S. was awash in supply, keeping a lid on prices.

This time around, carriers have scaled back their capacity growth plans, which is also helping boost fares. Airline executives this month said demand remains strong despite higher fares, which they say are likely to stick.

Read more CNBC airline newsDelta launches ‘basic business’ fares without lounge access, seat selectionRecord heat, crowds drive offseason boom in international travelDelta expects higher airfare to last, bringing 2026 profit goal in reach'Bring 'em on': Delta wants United's crown over the Pacific, tooSpirit's collapse, high fuel prices test limits of summer vacation spendingMeet the pilots flying Spirit Airlines' yellow jets to the desert

, /PRNewswire/ -- The Otis Worldwide Corporation (NYSE: OTIS) Board of Directors today declared a quarterly dividend of $0.44 per share of Otis' common stock. The dividend will be payable on September 11, 2026, to shareholders of record at the close of business on August 14, 2026.

About Otis

Otis gives people freedom to connect and thrive in a taller, faster, smarter world. The global leader in the manufacture, installation, service and modernization of elevators and escalators, we move 2.5 billion people a day and maintain approximately 2.5 million customer units worldwide – the industry's largest Service portfolio. You'll find us in the world's most iconic structures, as well as residential and commercial buildings, transportation hubs and everywhere people are on the move. Headquartered in Connecticut, USA, Otis is 72,000 people strong, including 45,000 field professionals, all committed to manufacturing, installing and maintaining products to meet the diverse needs of our customers and passengers in more than 200 countries and territories. To learn more, visit www.otis.com and follow us on LinkedIn, YouTube, Instagram and Facebook @OtisElevatorCo.

Cautionary Statement

This release includes statements related to anticipated earnings, cash flow and dividends that constitute "forward-looking statements" under the securities laws. All forward-looking statements involve risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Past dividends provide no assurance as to future dividends. The payment and amount of future dividends could vary significantly from past amounts due to a number of risks and uncertainties. Risks and uncertainties include: (1) the effect of economic conditions in the industries and markets in which Otis and its businesses operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates, future availability of credit and factors that may affect such availability or costs (including tighter credit conditions), levels of end market demand in construction, pandemic health issues, natural disasters and the financial condition of Otis' customers and suppliers; (2) risks associated with indebtedness; (3) challenges in the development and production of new products and services; and (4) the effect of changes in laws and regulations, political conditions and geopolitical conflicts in countries in which we operate and other factors beyond our control. The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary from those stated in forward-looking statements, see the reports of Otis on Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC from time to time. Any forward-looking statement speaks only as of the date on which it is made, and Otis assumes no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

SOURCE Otis Worldwide Corporation

Snap-on Incorporated (SNA) Q2 2026 Earnings Call July 23, 2026 10:00 AM EDT

Company Participants

Sara Verbsky - Vice President of Investor Relations
Nicholas Pinchuk - Chairman, CEO & President
Aldo Pagliari - Senior VP of Finance & CFO

Conference Call Participants

David S. MacGregor - Longbow Research LLC
Christopher Glynn - Oppenheimer & Co. Inc., Research Division
Scott Stember - ROTH Capital Partners, LLC, Research Division
Gary Prestopino - Barrington Research Associates, Inc., Research Division
Bret Jordan - Jefferies LLC, Research Division

Presentation

Operator

Good day, and welcome to the Snap-on Incorporated 2026 Second Quarter Results Conference Call. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the call over to Sara Verbsky, Vice President, Investor Relations. Please go ahead.

Sara Verbsky
Vice President of Investor Relations

Thank you, Cole, and good morning, everyone. We appreciate you joining us today as we review Snap-on's second quarter results, which are detailed in our press release issued earlier this morning. We have on the call Nick Pinchuk, Snap-on's Chief Executive Officer; and Aldo Pagliari, Snap-on's Chief Financial Officer.

Nick will kick off our call this morning with his perspective on our performance. Aldo will then provide a more detailed review of the financial results. After Nick provides some closing thoughts, we'll take your questions.

As usual, we provided slides to supplement our discussion. These slides can be accessed under the Downloads tab in the webcast viewer as well as on our website, snapon.com, under the Investors section. The slides will be archived on our website along with the transcript of today's call. Any statements made during this call relative to management's expectations, estimates or beliefs or that otherwise discuss management's or the company's outlook, plans or projections are forward-looking statements and actual results may differ materially from those made in such statements. Additional information and the factors

Match Group Inc (NASDAQ:MTCH)'s Tinder is showing tentative signs of improving user trends, but Jefferies said it remains too early to call a turnaround.

The brokerage said Match Group's most recent quarter showed early signs of improvement in new user registrations and monthly active user (MAU) declines, a trend that appears to have held up based on third-party MAU and download data.

Jefferies added that Tinder revenue and payers could outperform Street estimates this year if user givebacks come in lower than budgeted.

Still, the firm cautioned that it does not view recent product changes as materially altering Tinder's trajectory.

Jefferies is modeling Match Group's second-quarter total revenue down 1% year-over-year and Tinder payers down 110,000 quarter-over-quarter, largely in line with Street estimates and guidance. The firm sees possible upside toward the high end of guidance if a guided roughly $20 million Azar headwind and roughly $10 million Tinder UX testing impact prove less severe than expected.

Third-quarter revenue is expected to worsen to down 2% year-over-year as Tinder user givebacks pick up in the second half, with Jefferies modeling a 5% year-over-year decline in Tinder payers for the rest of the year. The firm noted Match Group still has roughly $45 million of givebacks budgeted after using less than expected earlier in the year, meaning payer declines could be more modest than expected if givebacks again come in below plan.

Jefferies also continues to expect revenue pressure from Azar's lower-monetizing relaunch over coming quarters.

While Match Group is targeting flat Tinder MAU growth by the end of 2027, Jefferies said it remains skeptical that incremental changes like branding refreshes and feature launches can drive a durable turnaround.

Jefferies called recent Tinder product changes, including Double Date, Astrology Mode and new event formats, helpful but still early. It does not expect the recent Tinder rebrand to materially shift user growth trends.

The firm remains concerned about structural challenges in the dating category and made no changes to its estimates. Its price target is based on 8x FY27 EBITDA, with a Hold rating and $35 price target on the stock.

Ameriprise Financial, Inc. (AMP) Q2 2026 Earnings Call July 23, 2026 8:30 AM EDT

Company Participants

Stephanie Rabe - Head of Investor Relations
Jim Cracchiolo - Chairman & CEO
Walter Berman - Executive VP, CFO & Chief Risk Officer

Conference Call Participants

Brennan Hawken - BMO Capital Markets Equity Research
Craig Siegenthaler - BofA Securities, Research Division
Crispin Love - Piper Sandler & Co., Research Division
Wilma Jackson Burdis - Raymond James & Associates, Inc., Research Division
Thomas Gallagher - Evercore ISI Institutional Equities, Research Division
Ryan Krueger - Keefe, Bruyette, & Woods, Inc., Research Division
Suneet Kamath - Jefferies LLC, Research Division

Presentation

Operator

Welcome to the Second Quarter 2026 Earnings Call. My name is Rebecca, and I will be your operator for today's call. [Operator Instructions] As a reminder, the conference is being recorded. I will now turn the call over to Stephanie Rabe. Stephanie, you may begin.

Stephanie Rabe
Head of Investor Relations

Welcome to Ameriprise Financial's Second Quarter Earnings Call. On the call with me today are Jim Cracchiolo, Chairman and CEO; and Walter Berman, Chief Financial Officer. Following their remarks, we'd be happy to take your questions. Turning to our earnings presentation materials that are available on our website. On Slide 2, you will see a discussion of forward-looking statements. Specifically, during the call, you'll hear references to various non-GAAP financial measures. which we believe provide insight into our company's operations. Reconciliation of non-GAAP numbers to their respective GAAP numbers can be found in today's materials and on our website at ir.ameriprise.com.

Some statements that we make on this call may be forward-looking, reflecting management's expectations about future events and overall operating plans and performance. These forward-looking statements speak only as of today's date and involve a number of risks and uncertainties. A sample list of factors and risks that could cause actual results

, /PRNewswire/ -- SouthState Bank Corporation ("SouthState" or the "Company") (NYSE: SSB) today released its unaudited results of operations and other financial information for the three-month and six-month periods ended June 30, 2026.

SouthState Bank Corporation Reports Second Quarter 2026 Results "We continue to make progress on our priorities of balance sheet growth, opportunistic hiring, active share repurchases and building our artificial intelligence capabilities," said John C. Corbett, SouthState's Chief Executive Officer.  "The second quarter featured solid loan growth, a stable net interest margin, unchanged deposit costs, and improved efficiency.  Asset quality trends also improved, with a decline in non-accruals and charge-offs of just 6 basis points.  Over the past year, we've retired nearly 5% of our share count, raised our dividend by 11% and grown tangible book value by 13%.  We remain focused on delivering for our shareholders."

Highlights of the second quarter of 2026 include:

Returns

Reported diluted Earnings per Share ("EPS") and Adjusted Diluted EPS (Non-GAAP) of $2.35, up 11% year over year on a reported basis and 2% year over year on an adjusted basis Net Income of $230 million Return on Average Common Equity of 10.2%; Return on Average Tangible Common Equity (Non-GAAP) of 17.6%* Return on Average Assets ("ROAA") of 1.36%* Book Value per Share of $94.17 Tangible Book Value ("TBV") per Share (Non-GAAP) of $58.72, an increase of 13% year over year, after raising the dividend by 11%, and repurchasing nearly 5% of the Company's shares over the past year Performance

Net Interest Income of $576 million, an increase of $14 million, or 3%, compared to the prior quarter Noninterest Income of $97 million, a decrease of $3 million compared to the prior quarter primarily due to mortgage banking income; Noninterest Income represented 0.57% of average assets for the second quarter of 2026* Noninterest Expense of $358 million, a decrease of $2 million compared to the prior quarter primarily due to OREO and loan related expense Net Interest Margin ("NIM"), non-tax equivalent and tax equivalent (Non-GAAP), of 3.78% Net charge-offs totaled $8 million, or 0.06%* of average loans $16 million of Provision for Credit Losses ("PCL"); total Allowance for Credit Losses ("ACL") plus reserve for unfunded commitments of 1.30% of loans Efficiency Ratio improved to 50% from the prior quarter Balance Sheet

Loans increased by $1.4 billion, or 11%*, compared to the prior quarter and increased by $3.6 billion, or 8%, year over year; deposits increased by $474 million, or 3%*, and increased by $2.7 billion, or 5%, year over year; ending loan to deposit ratio of 90% Total deposit cost of 1.76%, unchanged from the prior quarter Strong capital position with Tangible Common Equity, Total Risk-Based Capital, Tier 1 Leverage, and Tier 1 Common Equity ratios of 8.7%, 13.5%, 9.4%, and 11.1%, respectively† Subsequent Events

The Board of Directors of the Company increased its quarterly cash dividend on its common stock from $0.60 per share to $0.66 per share; the dividend is payable on August 14, 2026 to shareholders of record as of August 7, 2026 ∗  Annualized percentages
†  Preliminary 

Financial Performance

Three Months Ended

Six Months Ended

(Dollars in thousands, except per share data)

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Jun. 30,

Jun. 30,

INCOME STATEMENT

2026

2026

2025

2025

2025

2026

2025

Interest Income

   Loans, including fees (1)

$

744,652

$

721,571

$

748,106

$

782,382

$

746,448

$

1,466,222

$

1,471,088

   Investment securities, trading securities, federal funds sold and securities

      purchased under agreements to resell

93,607

95,258

100,640

99,300

94,056

188,866

177,982

Total interest income

838,259

816,829

848,746

881,682

840,504

1,655,088

1,649,070

Interest Expense

   Deposits

244,216

238,522

250,189

257,271

241,593

482,738

487,550

   Federal funds purchased, securities sold under agreements

      to repurchase, and other borrowings

18,094

16,702

17,442

24,714

20,963

34,796

39,025

Total interest expense

262,310

255,224

267,631

281,985

262,556

517,534

526,575

Net Interest Income

575,949

561,605

581,115

599,697

577,948

1,137,554

1,122,495

  Provision for credit losses

15,919

10,808

6,605

5,085

7,505

26,727

108,067

Net Interest Income after Provision for Credit Losses

560,030

550,797

574,510

594,612

570,443

1,110,827

1,014,428

Noninterest Income

Operating income

96,726

100,098

105,753

99,086

86,817

196,824

172,437

Securities losses, net

—

—

—

—

—

—

(228,811)

Gain on sale leaseback, net of transaction costs

—

—

—

—

—

—

229,279

Total noninterest income

96,726

100,098

105,753

99,086

86,817

196,824

172,905

Noninterest Expense

Operating expense

357,749

359,524

364,196

351,453

350,682

717,273

691,502

Merger, branch consolidation, severance related, and other expense (8)

—

—

4,494

20,889

24,379

—

92,385

FDIC special assessment

—

—

(3,835)

—

—

—

—

Total noninterest expense

357,749

359,524

364,855

372,342

375,061

717,273

783,887

Income before Income Tax Provision

299,007

291,371

315,408

321,356

282,199

590,378

403,446

Income tax provision

68,985

65,551

67,686

74,715

66,975

134,536

99,142

Net Income

$

230,022

$

225,820

$

247,722

$

246,641

$

215,224

$

455,842

$

304,304

Adjusted Net Income (non-GAAP) (2)

Net Income (GAAP)

$

230,022

$

225,820

$

247,722

$

246,641

$

215,224

$

455,842

$

304,304

Securities losses, net of tax

—

—

—

—

—

—

178,639

Gain on sale leaseback, net of transaction costs and tax

—

—

—

—

—

—

(179,004)

Initial provision for credit losses - Non-PCD loans and UFC from

Independent, net of tax

—

—

—

—

—

—

71,892

Merger, branch consolidation, severance related, and other expense,

net of tax (8)

—

—

3,529

16,032

18,593

—

71,687

Deferred tax asset remeasurement

—

—

—

—

—

—

5,581

FDIC special assessment, net of tax

—

—

(3,012)

—

—

—

—

Adjusted Net Income (non-GAAP)

$

230,022

$

225,820

$

248,239

$

262,673

$

233,817

$

455,842

$

453,099

   Basic earnings per common share

$

2.36

$

2.29

$

2.48

$

2.44

$

2.12

$

4.66

$

3.00

   Diluted earnings per common share

$

2.35

$

2.28

$

2.46

$

2.42

$

2.11

$

4.64

$

2.99

   Adjusted net income per common share - Basic (non-GAAP) (2)

$

2.36

$

2.29

$

2.48

$

2.60

$

2.30

$

4.66

$

4.47

   Adjusted net income per common share - Diluted (non-GAAP) (2)

$

2.35

$

2.28

$

2.47

$

2.58

$

2.30

$

4.64

$

4.45

   Dividends per common share

$

0.60

$

0.60

$

0.60

$

0.60

$

0.54

$

1.20

$

1.08

   Basic weighted-average common shares outstanding

97,300,899

98,544,242

100,063,315

101,218,431

101,495,456

97,919,136

101,452,777

   Diluted weighted-average common shares outstanding

97,676,767

98,922,258

100,618,796

101,735,095

101,845,360

98,292,252

101,835,756

   Effective tax rate

23.07 %

22.50 %

21.46 %

23.25 %

23.73 %

22.79 %

24.57 %

   Adjusted effective tax rate

23.07 %

22.50 %

21.46 %

23.25 %

23.73 %

22.79 %

23.19 %

Performance and Capital Ratios

Three Months Ended

Six Months Ended

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Jun. 30,

Jun. 30,

2026

2026

2025

2025

2025

2026

2025

PERFORMANCE RATIOS

Return on average assets (annualized)

1.36

%

1.37

%

1.47

%

1.49

%

1.34

%

1.36

%

0.95

%

Adjusted return on average assets (annualized) (non-GAAP) (2)

1.36

%

1.37

%

1.48

%

1.59

%

1.45

%

1.36

%

1.42

%

Return on average common equity (annualized)

10.19

%

10.11

%

10.90

%

11.04

%

9.93

%

10.15

%

7.17

%

Adjusted return on average common equity (annualized) (non-GAAP) (2)

10.19

%

10.11

%

10.92

%

11.75

%

10.79

%

10.15

%

10.68

%

Return on average tangible common equity (annualized) (non-GAAP) (3)

17.62

%

17.59

%

19.10

%

19.62

%

18.17

%

17.60

%

13.73

%

Adjusted return on average tangible common equity (annualized) (non-GAAP) (2) (3)

17.62

%

17.59

%

19.14

%

20.81

%

19.61

%

17.60

%

19.72

%

Efficiency ratio (tax equivalent)

50.00

%

51.05

%

49.65

%

49.88

%

52.75

%

50.52

%

56.75

%

Adjusted efficiency ratio (non-GAAP) (4)

50.00

%

51.05

%

49.56

%

46.89

%

49.09

%

50.52

%

49.65

%

Dividend payout ratio (5)

25.31

%

26.12

%

24.23

%

24.59

%

25.47

%

25.71

%

36.00

%

Book value per common share

$

94.17

$

92.21

$

91.38

$

89.14

$

86.71

Tangible book value per common share (non-GAAP) (3)

$

58.72

$

56.90

$

56.27

$

54.48

$

51.96

CAPITAL RATIOS

Equity-to-assets

13.3

%

13.3

%

13.5

%

13.6

%

13.4

%

Tangible equity-to-tangible assets (non-GAAP) (3)

8.7

%

8.6

%

8.8

%

8.8

%

8.5

%

Tier 1 leverage (6)

9.4

%

9.4

%

9.3

%

9.4

%

9.2

%

Tier 1 common equity (6)

11.1

%

11.3

%

11.4

%

11.5

%

11.2

%

Tier 1 risk-based capital (6)

11.1

%

11.3

%

11.4

%

11.5

%

11.2

%

Total risk-based capital (6)

13.5

%

13.7

%

13.8

%

14.0

%

14.5

%

Balance Sheet

Ending Balance

(Dollars in thousands, except per share and share data)

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

BALANCE SHEET

2026

2026

2025

2025

2025

Assets

Cash and due from banks

$

649,079

$

598,218

$

583,375

$

582,792

$

755,798

Federal funds sold and interest-earning deposits with banks

1,701,233

2,268,864

2,589,108

2,561,663

2,708,308

         Cash and cash equivalents

2,350,312

2,867,082

3,172,483

3,144,455

3,464,106

Trading securities, at fair value

191,094

117,590

110,183

107,519

95,306

Investment securities:

   Securities held to maturity

1,955,754

2,007,249

2,048,030

2,096,727

2,145,991

   Securities available for sale, at fair value

6,598,177

6,530,348

6,313,756

6,042,800

5,927,867

   Other investments

366,986

370,924

353,428

366,218

357,487

         Total investment securities

8,920,917

8,908,521

8,715,214

8,505,745

8,431,345

Loans held for sale

405,441

327,935

345,343

346,673

318,985

Loans:

Purchased credit deteriorated

2,658,792

2,818,360

2,977,499

3,160,359

3,409,186

Purchased non-credit deteriorated

9,921,791

10,714,489

11,232,414

11,877,828

12,492,553

Non-acquired

38,266,289

35,963,934

34,388,614

32,629,724

31,365,508

   Less allowance for credit losses

(586,664)

(585,882)

(585,197)

(590,133)

(621,046)

         Loans, net

50,260,208

48,910,901

48,013,330

47,077,778

46,646,201

Premises and equipment, net

992,594

993,584

994,176

961,510

964,878

Bank owned life insurance

1,311,197

1,302,382

1,293,574

1,285,532

1,280,632

Mortgage servicing rights

91,442

90,018

84,032

84,491

85,836

Core deposit and other intangibles

343,424

364,686

386,326

409,890

433,458

Goodwill

3,094,059

3,094,059

3,094,059

3,094,059

3,094,059

Other assets

949,340

1,002,465

988,692

1,030,558

1,078,516

              Total assets

$

68,910,028

$

67,979,223

$

67,197,412

$

66,048,210

$

65,893,322

Liabilities and Shareholders' Equity

Deposits:

   Noninterest-bearing

$

13,451,094

$

13,650,799

$

13,375,697

$

13,430,459

$

13,719,030

   Interest-bearing

42,898,716

42,224,864

41,770,100

40,642,810

39,977,931

         Total deposits

56,349,810

55,875,663

55,145,797

54,073,269

53,696,961

Federal funds purchased and securities

   sold under agreements to repurchase

569,486

643,386

618,215

594,092

630,558

Other borrowings

996,749

696,642

696,536

696,429

1,099,705

Reserve for unfunded commitments

76,525

69,229

69,619

68,538

64,693

Other liabilities

1,785,990

1,663,387

1,608,137

1,604,756

1,600,271

              Total liabilities

59,778,560

58,948,307

58,138,304

57,037,084

57,092,188

Shareholders' equity:

   Common stock - $2.50 par value; authorized 160,000,000 shares

242,428

244,844

247,845

252,723

253,745

   Surplus

6,247,484

6,332,285

6,480,471

6,647,952

6,679,028

   Retained earnings

2,951,691

2,779,896

2,614,173

2,426,463

2,240,470

   Accumulated other comprehensive loss

(310,135)

(326,109)

(283,381)

(316,012)

(372,109)

              Total shareholders' equity

9,131,468

9,030,916

9,059,108

9,011,126

8,801,134

              Total liabilities and shareholders' equity

$

68,910,028

$

67,979,223

$

67,197,412

$

66,048,210

$

65,893,322

Common shares issued and outstanding

96,971,142

97,937,653

99,138,204

101,089,231

101,498,000

Net Interest Income and Margin

Three Months Ended

Jun. 30, 2026

Mar. 31, 2026

Jun. 30, 2025

(Dollars in thousands)

Average

Income/

Yield/

Average

Income/

Yield/

Average

Income/

Yield/

YIELD ANALYSIS

Balance

Expense

Rate

Balance

Expense

Rate

Balance

Expense

Rate

Interest-Earning Assets:

Federal funds sold and interest-earning deposits with banks

$

1,386,864

$

12,236

3.54 %

$

1,881,020

$

15,792

3.40 %

$

1,884,133

$

19,839

4.22 %

Investment securities

9,213,359

81,371

3.54 %

9,221,416

79,466

3.49 %

8,513,439

74,217

3.50 %

Loans held for sale

286,422

4,602

6.44 %

223,084

3,732

6.78 %

283,017

4,829

6.84 %

Total loans held for investment

50,247,114

740,050

5.91 %

48,875,656

717,839

5.96 %

47,029,412

741,619

6.33 %

     Total interest-earning assets

61,133,759

838,259

5.50 %

60,201,176

816,829

5.50 %

57,710,001

840,504

5.84 %

Noninterest-earning assets

6,694,407

6,726,355

6,840,880

     Total Assets

$

67,828,166

$

66,927,531

$

64,550,881

Interest-Bearing Liabilities ("IBL"):

Transaction and money market accounts

$

32,098,340

$

180,220

2.25 %

$

31,499,841

$

172,453

2.22 %

$

28,986,998

$

173,481

2.40 %

Savings deposits

2,817,269

1,638

0.23 %

2,822,510

1,642

0.24 %

2,921,780

2,012

0.28 %

Certificates and other time deposits

7,184,745

62,358

3.48 %

7,215,388

64,427

3.62 %

7,177,451

66,100

3.69 %

Federal funds purchased

289,337

2,616

3.63 %

295,207

2,635

3.62 %

360,588

3,943

4.39 %

Repurchase agreements

293,341

1,477

2.02 %

319,873

1,561

1.98 %

287,341

1,462

2.04 %

Other borrowings

851,660

14,001

6.59 %

696,597

12,506

7.28 %

821,545

15,558

7.60 %

     Total interest-bearing liabilities

43,534,692

262,310

2.42 %

42,849,416

255,224

2.42 %

40,555,703

262,556

2.60 %

Noninterest-bearing deposits

13,521,146

13,359,214

13,643,265

Other noninterest-bearing liabilities

1,719,228

1,661,672

1,659,331

Shareholders' equity

9,053,100

9,057,229

8,692,582

     Total Non-IBL and shareholders' equity

24,293,474

24,078,115

23,995,178

     Total Liabilities and Shareholders' Equity

$

67,828,166

$

66,927,531

$

64,550,881

Net Interest Income and Margin (Non-Tax Equivalent)

$

575,949

3.78 %

$

561,605

3.78 %

$

577,948

4.02 %

Net Interest Margin (Tax Equivalent) (non-GAAP)

3.78 %

3.79 %

4.02 %

Total Deposit Cost (without Debt and Other Borrowings)

1.76 %

1.76 %

1.84 %

Overall Cost of Funds (including Demand Deposits)

1.84 %

1.84 %

1.94 %

Total Accretion on Acquired Loans (1)

$

33,054

$

38,786

$

63,507

Tax Equivalent ("TE") Adjustment

$

751

$

760

$

672

•   The remaining loan discount on acquired loans to be accreted into loan interest income totals $185.9 million as of June 30, 2026.

Noninterest Income and Expense

Three Months Ended

Six Months Ended

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Jun. 30,

Jun. 30,

(Dollars in thousands)

2026

2026

2025

2025

2025

2026

2025

Noninterest Income:

   Fees on deposit accounts

$

41,568

$

38,699

$

41,950

$

42,572

$

37,869

$

80,267

$

73,802

   Mortgage banking income

4,890

11,016

5,158

5,462

5,936

15,906

13,673

   Trust and investment services income

15,164

14,471

14,684

14,157

14,419

29,635

29,351

   Correspondent banking and capital markets income

24,839

24,427

30,638

25,522

19,161

49,266

35,876

   Expense on centrally-cleared variation margin

(4,028)

(3,000)

(3,167)

(4,318)

(5,394)

(7,028)

(12,564)

   Total correspondent banking and capital markets income

20,811

21,427

27,471

21,204

13,767

42,238

23,312

   Bank owned life insurance income

9,624

9,494

9,633

10,597

9,153

19,118

19,352

   Other

4,669

4,991

6,857

5,094

5,673

9,660

12,947

   Securities losses, net

—

—

—

—

—

—

(228,811)

   Gain on sale leaseback, net of transaction costs

—

—

—

—

—

—

229,279

         Total Noninterest Income

$

96,726

$

100,098

$

105,753

$

99,086

$

86,817

$

196,824

$

172,905

Noninterest Expense:

   Salaries and employee benefits

$

205,377

$

205,653

$

202,714

$

199,148

$

200,162

$

411,030

$

395,973

   Occupancy expense

43,878

42,302

42,567

40,874

41,507

86,180

77,000

   Information services expense

29,136

29,704

30,443

28,988

30,155

58,840

61,517

   OREO and loan related expense

952

4,378

867

5,427

2,295

5,330

4,079

   Business development and staff related

10,639

11,362

13,485

8,907

7,182

22,001

13,692

   Amortization of intangibles

21,041

21,304

23,417

23,426

24,048

42,345

47,879

   Professional fees

5,090

5,239

7,410

4,994

4,658

10,329

9,367

   Supplies and printing expense

3,885

3,254

3,594

3,278

3,970

7,139

7,098

   FDIC assessment and other regulatory charges

10,753

10,257

9,884

8,374

11,469

21,010

22,727

   Advertising and marketing

3,836

3,325

4,710

2,980

3,010

7,161

5,300

   Other operating expenses

23,162

22,746

25,105

25,057

22,226

45,908

46,870

   Merger, branch consolidation, severance related and other expense (8)

—

—

4,494

20,889

24,379

—

92,385

   FDIC special assessment

—

—

(3,835)

—

—

—

—

         Total Noninterest Expense

$

357,749

$

359,524

$

364,855

$

372,342

$

375,061

$

717,273

$

783,887

Loans and Deposits

The following table presents a summary of the loan portfolio by type:

Ending Balance

(Dollars in thousands)

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

LOAN PORTFOLIO (7)

2026

2026

2025

2025

2025

Construction and land development * †

$

2,982,968

$

2,592,908

$

2,548,360

$

2,678,971

$

3,323,923

Investor commercial real estate*

18,656,455

18,298,938

17,883,913

17,603,205

16,953,410

Commercial owner occupied real estate

7,852,391

7,671,535

7,576,991

7,529,075

7,497,906

Commercial and industrial

9,378,444

9,385,926

9,181,408

8,644,636

8,445,878

Consumer real estate *

11,034,102

10,573,897

10,450,223

10,202,026

10,038,369

Consumer/other

942,512

973,579

957,632

1,009,998

1,007,761

Total Loans

$

50,846,872

$

49,496,783

$

48,598,527

$

47,667,911

$

47,267,247

*     

Single family home construction-to-permanent loans originated by the Company's mortgage banking division are included in construction and land development category until completion.  Investor commercial real estate loans include commercial non-owner occupied real estate and other income producing property.  Consumer real estate includes consumer owner occupied real estate and home equity loans.

†     

Includes single family home construction-to-permanent loans of $358.4 million, $360.4 million, $342.8 million, $350.2 million, and $371.1 million for the quarters ended June 30, 2026, March 31, 2036, December 31, 2025, September 30, 2025, and June 30, 2025, respectively.

Ending Balance

(Dollars in thousands)

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

DEPOSITS

2026

2026

2025

2025

2025

Noninterest-bearing checking

$

13,451,094

$

13,650,799

$

13,375,697

$

13,430,459

$

13,719,030

Interest-bearing checking

14,710,312

14,119,614

13,838,558

12,906,408

12,607,205

Savings

2,796,845

2,841,408

2,820,621

2,853,410

2,889,670

Money market

17,531,137

18,014,140

17,751,688

17,251,469

16,772,597

Time deposits

7,860,422

7,249,702

7,359,233

7,631,523

7,708,459

Total Deposits

$

56,349,810

$

55,875,663

$

55,145,797

$

54,073,269

$

53,696,961

Asset Quality

Ending Balance

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

(Dollars in thousands)

2026

2026

2025

2025

2025

NONPERFORMING ASSETS:

Non-acquired

Non-acquired nonaccrual loans and restructured loans on nonaccrual

$

171,264

$

177,158

$

161,975

$

146,751

$

141,910

Accruing loans past due 90 days or more

2,961

6,915

2,997

4,352

3,687

Non-acquired OREO and other nonperforming assets

11,722

8,339

5,273

11,969

17,288

Total non-acquired nonperforming assets

185,947

192,412

170,245

163,072

162,885

Acquired

Acquired nonaccrual loans and restructured loans on nonaccrual

99,352

116,002

135,179

149,695

151,466

Accruing loans past due 90 days or more

835

1,986

1,944

891

707

Acquired OREO and other nonperforming assets

1,254

18,155

3,901

7,147

8,783

Total acquired nonperforming assets

101,441

136,143

141,024

157,733

160,956

Total nonperforming assets

$

287,388

$

328,555

$

311,269

$

320,805

$

323,841

Three Months Ended

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

2026

2026

2025

2025

2025

ASSET QUALITY RATIOS (7):

Allowance for credit losses as a percentage of loans

1.15 %

1.18 %

1.20 %

1.24 %

1.31 %

Allowance for credit losses, including reserve for unfunded commitments,

as a percentage of loans

1.30 %

1.32 %

1.35 %

1.38 %

1.45 %

Allowance for credit losses as a percentage of nonperforming loans

213.79 %

193.96 %

193.71 %

195.61 %

208.57 %

Net charge-offs as a percentage of average loans (annualized)

0.06 %

0.09 %

0.09 %

0.27 %

0.21 %

Net charge-offs, excluding acquisition date charge-offs, as a percentage

  of average loans (annualized) *

0.06 %

0.09 %

0.09 %

0.27 %

0.06 %

Total nonperforming assets as a percentage of total assets

0.42 %

0.48 %

0.46 %

0.49 %

0.49 %

Nonperforming loans as a percentage of period end loans

0.54 %

0.61 %

0.62 %

0.63 %

0.63 %

*        Excluding acquisition date charge-offs recorded in connection with the Independent merger.

Current Expected Credit Losses ("CECL")

Below is a table showing the roll forward of the ACL and UFC for the second quarter of 2026:

Allowance for Credit Losses ("ACL") and Unfunded Commitments ("UFC")

(Dollars in thousands)

Non-PCD ACL

PCD ACL

Total ACL

UFC

Ending balance 3/31/2026

$

520,619

$

65,263

$

585,882

$

69,229

Charge offs

(10,335)

—

(10,335)

—

Acquired charge offs

(246)

(1,161)

(1,407)

—

Recoveries

2,150

—

2,150

—

Acquired recoveries

320

1,431

1,751

—

Provision for credit losses

13,984

(5,361)

8,623

7,296

Ending balance 6/30/2026

$

526,492

$

60,172

$

586,664

$

76,525

Period end loans

$

48,188,080

$

2,658,792

$

50,846,872

N/A

Allowance for Credit Losses to Loans

1.09 %

2.26 %

1.15 %

N/A

Unfunded commitments (off balance sheet) †

$

12,824,707

Reserve to unfunded commitments (off balance sheet)

0.60 %

†        Unfunded commitments exclude unconditionally cancelable commitments and letters of credit.

Conference Call

The Company will host a conference call to discuss its second quarter results at 9:00 a.m. Eastern Time on July 24, 2026.  Callers wishing to participate may call toll-free by dialing (833) 461-5787 within the US. The numbers for international participants are listed at https://help.events.q4inc.com/eahc/international-dial-in-numbers.  The conference ID number is 404525610.   Alternatively, individuals may listen to the live webcast of the presentation by visiting SouthStateBank.com.  A replay of the live webcast is expected to be available by the evening of July 24, 2026 on the Investor Relations section of SouthStateBank.com.

SouthState is a financial services company headquartered in Winter Haven, Florida. SouthState Bank, N.A., the company's nationally chartered bank subsidiary, provides consumer, commercial, mortgage and wealth management solutions to more than 1.8 million customers throughout Florida, Texas, the Carolinas, Georgia, Colorado, Alabama, Virginia and Tennessee.  The bank also serves clients nationwide through its correspondent banking division.  Additional information is available at SouthStateBank.com.

Non-GAAP Measures

Statements included in this press release include non-GAAP measures and should be read along with the accompanying tables that provide a reconciliation of non-GAAP measures to GAAP measures.  Although other companies may use calculation methods that differ from those used by SouthState for non-GAAP measures, management believes that these non-GAAP measures provide additional useful information, which allows readers to evaluate the ongoing performance of the Company.  Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company.  Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP.

(Dollars in thousands)

Three Months Ended

PRE-PROVISION NET REVENUE ("PPNR") (NON-GAAP)

Jun. 30, 2026

Mar. 31, 2026

Dec. 31, 2025

Sep. 30, 2025

Jun. 30, 2025

Net income (GAAP)

$

230,022

$

225,820

$

247,722

$

246,641

$

215,224

Provision for credit losses

15,919

10,808

6,605

5,085

7,505

Income tax provision

68,985

65,551

67,686

74,715

66,975

Merger, branch consolidation, severance related and other expense (8)

—

—

4,494

20,889

24,379

FDIC special assessment

—

—

(3,835)

—

—

Pre-provision net revenue (PPNR) (Non-GAAP)

$

314,926

$

302,179

$

322,672

$

347,330

$

314,083

(Dollars in thousands)

Three Months Ended

NET INTEREST MARGIN ("NIM"), TE (NON-GAAP)

Jun. 30, 2026

Mar. 31, 2026

Dec. 31, 2025

Sep. 30, 2025

Jun. 30, 2025

Net interest income (GAAP)

$

575,949

$

561,605

$

581,115

$

599,697

$

577,948

Total average interest-earning assets

61,133,759

60,201,176

59,872,113

58,727,110

57,710,001

NIM, non-tax equivalent

3.78

%

3.78

%

3.85

%

4.05

%

4.02

%

Tax equivalent adjustment (included in NIM, TE)

751

760

800

718

672

Net interest income, tax equivalent (Non-GAAP)

$

576,700

$

562,365

$

581,915

$

600,415

$

578,620

NIM, TE (Non-GAAP)

3.78

%

3.79

%

3.86

%

4.06

%

4.02

%

Three Months Ended

Six Months Ended

(Dollars in thousands, except per share data)

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Jun. 30,

Jun. 30,

RECONCILIATION OF GAAP TO NON-GAAP

2026

2026

2025

2025

2025

2026

2025

Adjusted Net Income (non-GAAP) (2)

Net income (GAAP)

$

230,022

$

225,820

$

247,722

$

246,641

$

215,224

$

455,842

$

304,304

Securities losses, net of tax

—

—

—

—

—

—

178,639

Gain on sale leaseback, net of transaction costs and tax

—

—

—

—

—

—

(179,004)

PCL - Non-PCD loans and UFC, net of tax

—

—

—

—

—

—

71,892

Merger, branch consolidation, severance related and other expense,

net of tax (8)

—

—

3,529

16,032

18,593

—

71,687

Deferred tax asset remeasurement

—

—

—

—

—

—

5,581

FDIC special assessment, net of tax

—

—

(3,012)

—

—

—

—

Adjusted net income (non-GAAP)

$

230,022

$

225,820

$

248,239

$

262,673

$

233,817

$

455,842

$

453,099

Adjusted Net Income per Common Share - Basic (non-GAAP) (2)

Earnings per common share - Basic (GAAP)

$

2.36

$

2.29

$

2.48

$

2.44

$

2.12

$

4.66

$

3.00

Effect to adjust for securities losses, net of tax

—

—

—

—

—

—

1.76

Effect to adjust for gain on sale leaseback, net of transaction costs and tax

—

—

—

—

—

—

(1.76)

Effect to adjust for PCL - Non-PCD loans and UFC, net of tax

—

—

—

—

—

—

0.71

Effect to adjust for merger, branch consolidation, severance related

and other expense, net of tax (8)

—

—

0.03

0.16

0.18

—

0.70

Effect to adjust for deferred tax asset remeasurement

—

—

—

—

—

—

0.06

Effect to adjust for FDIC special assessment, net of tax

—

—

(0.03)

—

—

—

—

Adjusted net income per common share - Basic (non-GAAP)

$

2.36

$

2.29

$

2.48

$

2.60

$

2.30

$

4.66

$

4.47

Adjusted Net Income per Common Share - Diluted (non-GAAP) (2)

Earnings per common share - Diluted (GAAP)

$

2.35

$

2.28

$

2.46

$

2.42

$

2.11

$

4.64

$

2.99

Effect to adjust for securities losses, net of tax

—

—

—

—

—

—

1.76

Effect to adjust for gain on sale leaseback, net of transaction costs and tax

—

—

—

—

—

—

(1.76)

Effect to adjust for PCL - Non-PCD loans and UFC, net of tax

—

—

—

—

—

—

0.71

Effect to adjust for merger, branch consolidation, severance related

and other expense, net of tax (8)

—

—

0.04

0.16

0.19

—

0.70

Effect to adjust for deferred tax remeasurement

—

—

—

—

—

—

0.05

Effect to adjust for FDIC special assessment, net of tax

—

—

(0.03)

—

—

—

—

Adjusted net income per common share - Diluted (non-GAAP)

$

2.35

$

2.28

$

2.47

$

2.58

$

2.30

$

4.64

$

4.45

Adjusted Return on Average Assets (non-GAAP) (2)

Return on average assets (GAAP)

1.36

%

1.37

%

1.47

%

1.49

%

1.34

%

1.36

%

0.95

%

Effect to adjust for securities losses, net of tax

—

%

—

%

—

%

—

%

—

%

—

%

0.56

%

Effect to adjust for gain on sale leaseback, net of transaction costs and tax

—

%

—

%

—

%

—

%

—

%

—

%

(0.56)

%

Effect to adjust for PCL - Non-PCD loans and UFC, net of tax

—

%

—

%

—

%

—

%

—

%

—

%

0.23

%

Effect to adjust for merger, branch consolidation, severance related

and other expense, net of tax (8)

—

%

—

%

0.03

%

0.10

%

0.11

%

—

%

0.22

%

Effect to adjust for deferred tax remeasurement

—

%

—

%

—

%

—

%

—

%

—

%

0.02

%

Effect to adjust for FDIC special assessment, net of tax

—

%

—

%

(0.02)

%

—

%

—

%

—

%

—

%

Adjusted return on average assets (non-GAAP)

1.36

%

1.37

%

1.48

%

1.59

%

1.45

%

1.36

%

1.42

%

Adjusted Return on Average Common Equity (non-GAAP) (2)

Return on average common equity (GAAP)

10.19

%

10.11

%

10.90

%

11.04

%

9.93

%

10.15

%

7.17

%

Effect to adjust for securities losses, net of tax

—

%

—

%

—

%

—

%

—

%

—

%

4.21

%

Effect to adjust for gain on sale leaseback, net of transaction costs and tax

—

%

—

%

—

%

—

%

—

%

—

%

(4.22)

%

Effect to adjust for PCL - Non-PCD loans and UFC, net of tax

—

%

—

%

—

%

—

%

—

%

—

%

1.69

%

Effect to adjust for merger, branch consolidation, severance related

and other expense, net of tax (8)

—

%

—

%

0.15

%

0.71

%

0.86

%

—

%

1.70

%

Effect to adjust for deferred tax remeasurement

—

%

—

%

—

%

—

%

—

%

—

%

0.13

%

Effect to adjust for FDIC special assessment, net of tax

—

%

—

%

(0.13)

%

—

%

—

%

—

%

—

%

Adjusted return on average common equity (non-GAAP)

10.19

%

10.11

%

10.92

%

11.75

%

10.79

%

10.15

%

10.68

%

Return on Average Common Tangible Equity (non-GAAP) (3)

Return on average common equity (GAAP)

10.19

%

10.11

%

10.90

%

11.04

%

9.93

%

10.15

%

7.17

%

Effect to adjust for intangible assets

7.43

%

7.48

%

8.20

%

8.58

%

8.24

%

7.45

%

6.56

%

Return on average tangible equity (non-GAAP)

17.62

%

17.59

%

19.10

%

19.62

%

18.17

%

17.60

%

13.73

%

Adjusted Return on Average Common Tangible Equity (non-GAAP) (2) (3)

Return on average common equity (GAAP)

10.19

%

10.11

%

10.90

%

11.04

%

9.93

%

10.15

%

7.17

%

Effect to adjust for securities losses, net of tax

—

%

—

%

—

%

—

%

—

%

—

%

4.21

%

Effect to adjust for gain on sale leaseback, net of transaction costs and tax

—

%

—

%

—

%

—

%

—

%

—

%

(4.22)

%

Effect to adjust for PCL - Non-PCD loans and UFC, net of tax

—

%

—

%

—

%

—

%

—

%

—

%

1.69

%

Effect to adjust for merger, branch consolidation, severance related

and other expense, net of tax (8)

—

%

—

%

0.15

%

0.71

%

0.86

%

—

%

1.70

%

Effect to adjust for deferred tax remeasurement

—

%

—

%

—

%

—

%

—

%

—

%

0.13

%

Effect to adjust for FDIC special assessment, net of tax

—

%

—

%

(0.13)

%

—

%

—

%

—

%

—

%

Effect to adjust for intangible assets, net of tax

7.43

%

7.48

%

8.22

%

9.06

%

8.82

%

7.45

%

9.04

%

Adjusted return on average common tangible equity (non-GAAP)

17.62

%

17.59

%

19.14

%

20.81

%

19.61

%

17.60

%

19.72

%

Three Months Ended

Six Months Ended

Jun. 30,

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Jun. 30,

Jun. 30,

RECONCILIATION OF GAAP TO NON-GAAP

2026

2026

2025

2025

2025

2026

2025

Adjusted Efficiency Ratio (non-GAAP) (4)

Efficiency ratio

50.00

%

51.05

%

49.65

%

49.88

%

52.75

%

50.52

%

56.75

%

Effect to adjust for securities losses

—

%

—

%

—

%

—

%

—

%

—

%

(7.44)

%

Effect to adjust for gain on sale leaseback, net of transaction costs

—

%

—

%

—

%

—

%

—

%

—

%

7.46

%

Effect to adjust for merger, branch consolidation, severance related

and other expense, net of tax (8)

—

%

—

%

(0.65)

%

(2.99)

%

(3.66)

%

—

%

(7.12)

%

Effect to adjust for FDIC special assessment

—

%

—

%

0.56

%

—

%

—

%

—

%

—

%

Adjusted efficiency ratio (non-GAAP)

50.00

%

51.05

%

49.56

%

46.89

%

49.09

%

50.52

%

49.65

%

Tangible Book Value Per Common Share (non-GAAP) (3)

Book value per common share (GAAP)

$

94.17

$

92.21

$

91.38

$

89.14

$

86.71

Effect to adjust for intangible assets

(35.45)

(35.31)

(35.11)

(34.66)

(34.75)

Tangible book value per common share (non-GAAP)

$

58.72

$

56.90

$

56.27

$

54.48

$

51.96

Tangible Equity-to-Tangible Assets (non-GAAP) (3)

Equity-to-assets (GAAP)

13.25

%

13.28

%

13.48

%

13.64

%

13.36

%

Effect to adjust for intangible assets

(4.55)

%

(4.64)

%

(4.72)

%

(4.83)

%

(4.90)

%

Tangible equity-to-tangible assets (non-GAAP)

8.70

%

8.64

%

8.76

%

8.81

%

8.46

%

Certain prior period information has been reclassified to conform to the current period presentation, and these reclassifications have no impact on net income or equity as previously reported.

Footnotes to tables:

(1)

Includes loan accretion (interest) income related to the discount on acquired loans of $33.1 million, $38.8 million, $50.3 million, $83.0 million, and $63.5 million during the quarters ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively, and $71.8 million and $125.3 million during the six months ended June 30, 2026 and 2025, respectively.

(2)

Adjusted earnings, adjusted return on average assets, adjusted EPS, and adjusted return on average equity are non-GAAP measures and exclude the gains or losses on sales of securities, gain on sale leaseback, net of transaction costs, PCL on non-PCD loans and unfunded commitments, deferred tax asset remeasurement, merger, branch consolidation, severance related and other expense, and FDIC special assessments.  Management believes that non-GAAP adjusted measures provide additional useful information that allows readers to evaluate the ongoing performance of the Company.  Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company.  Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP.  Adjusted earnings and the related adjusted return measures (non-GAAP) exclude the following from net income (GAAP) on an after-tax basis: (a) pre-tax merger, branch consolidation, severance related and other expense of $4.5 million, $20.9 million, and $24.4 million for the quarters ended December 31, 2025, September 30, 2025, and June 30, 2025, respectively, and $92.4 million during the six months ended June 30, 2025; (b) pre-tax net securities losses of $(228.8) million for the six months ended June 30, 2025; (c) pre-tax gain on sale leaseback, net of transaction costs of $229.3 million for the six months ended June 30, 2025; (d) pre-tax PCL on non-PCD loans and unfunded commitments of $92.1 million for the six months ended June 30, 2025; (e) pre-tax FDIC special assessment of $(3.8) million for the quarter ended December 31, 2025; and (f) deferred tax asset remeasurement of $5.6 million for the six months ended June 30, 2025.

(3)

The tangible measures are non-GAAP measures and exclude the effect of period end or average balance of intangible assets.  The tangible returns on equity and common equity measures also add back the after-tax amortization of intangibles to GAAP basis net income.  Management believes that these non-GAAP tangible measures provide additional useful information, particularly since these measures are widely used by industry analysts for companies with prior merger and acquisition activities.  Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company.  Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP. The sections titled "Reconciliation of GAAP to Non-GAAP" provide tables that reconcile GAAP measures to non-GAAP.

(4)

Adjusted efficiency ratio is calculated by taking the noninterest expense excluding transaction costs on merger, branch consolidation, severance related and other expenses, FDIC special assessment, and amortization of intangible assets, divided by net interest income and noninterest income excluding gains (losses) on sales of securities, net, and gain on sale leaseback, net of transaction costs.  The pre-tax amortization expenses of intangible assets were $21.0 million, $21.3 million, $23.4 million, $23.4 million, and $24.0 million for the quarters ended June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025, respectively, and $42.3 million and $47.9 million for the six months ended June 30, 2026 and 2025, respectively.

(5)

The dividend payout ratio is calculated by dividing total dividends paid during the period by the total net income for the same period.

(6)

June 30, 2026 ratios are estimated and may be subject to change pending the final filing of the FR Y-9C; all other periods are presented as filed. 

(7)

Loan data excludes loans held for sale.

(8)

Includes pre-tax cyber incident net reimbursement of $(3.6) million for the quarters ended June 30, 2025 and $(3.5) million for the six months ended June 30, 2025.

Cautionary Statement Regarding Forward Looking Statements

Statements included in this communication contain forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of management of SouthState Bank Corporation ("SouthState") and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward looking statements.

Factors that could cause SouthState's actual results to differ materially from those described in the forward looking statements are discussed in SouthState's Annual Report on Form 10 K for the year ended December 31, 2025, filed with the Securities and Exchange Commission and available on SouthState's website (https://southstatecorporation.q4ir.com/SEC-Filings/Documents/default.aspx), and on the Securities and Exchange Commission's website (www.sec.gov). SouthState undertakes no obligation to update any forward looking statements.

SOURCE SouthState Bank Corporation