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Illumina (NASDAQ:ILMN) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.

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View the webcast at https://illumina-earnings-call-q3-2026.open-exchange.net/

SummaryIllumina reported strong financial performance in Q3 2026, with revenue of $1.17 billion, up 4.7% year over year on a rest of world organic basis. Operating margin was 25%, and diluted EPS was $1.44, a 7% increase from the previous year.

The company raised its full-year guidance, expecting revenue between $4.64 and $4.66 billion, driven by increased sequencing consumable sales and strong NovaSeq X placements.

Strategically, Illumina highlighted the Billion Cell Atlas and the BioInsight platform as key initiatives, focusing on AI-ready datasets and multi-omics capabilities to enhance drug discovery and clinical applications.

Operational highlights included elevated demand for NovaSeq X, with over 80 instruments placed in Q3, and significant traction in the clinical sequencing market, which grew 14% year over year.

Management expressed confidence in achieving long-term financial targets, citing strong market conditions, particularly in the clinical sector, and ongoing innovation in AI and multi-omics as future growth drivers.

Full TranscriptOPERATOR

Good day, ladies and gentlemen. Welcome to the third quarter 2026 Illumina earnings conference call. At this time, all participants are in a listen-only mode. After the speaker’s presentation, we will conduct a question-and-answer session. Please be advised that today’s conference is being recorded. I would now like to hand the call over to Head of Investor Relations, Conor McNamara.

Conor McNamara (Head of Investor Relations)

Hello everyone, and welcome to Illumina’s third quarter 2026 earnings call. Today we will review our financial results released after the market closed and provide prepared remarks before opening the line for Q&A. Our earnings release is available in the Investor Relations section of Illumina.com. Joining me today are Jacob Thaysen, Chief Executive Officer, and Ankur Dhingra, Chief Financial Officer. Jacob will begin with an update on Illumina’s business, followed by Ankur’s review of our financials.

As you may have seen in our press release, we recognized certain tariff refunds in the third quarter, which had a positive impact on GAAP and non-GAAP operating income margins and EPS, and a negative impact on revenue. These refunds were not contemplated in our previous guidance, and all financial measures discussed today will be on an adjusted non-GAAP basis excluding the impact of tariff refunds. Reconciliations to non-GAAP and GAAP can be found in today’s release and in the supplementary data on our website.

All revenue and revenue growth rates are presented excluding tariff refunds. Organic revenue growth also adjusts for the impact of currency and acquisitions, and Rest of World organic growth further excludes our Greater China region. This call is being recorded, and the replay will be available on our website. As a reminder, the information provided and discussed today will include forward-looking statements, including statements about Illumina’s future events, product outlook, and financial expectations. Actual results may differ materially. To better understand the risks and uncertainties that could cause actual results to differ, we refer you to the documents that Illumina files with the SEC, including our most recent Forms 10-Q and 10-K. With that, I will now turn the call over to Jacob.

Jacob Thaysen (Chief Executive Officer)

Thank you, Conor, and good afternoon, everyone. We had a great third quarter with strong clinical sequencing demand and elevated NovaSeq X placements driving revenue, margin, and EPS above our guidance range. Our strategy is working, and I’m proud of what our team delivered for our customers and shareholders. Our continued disciplined execution and business momentum allow us to raise our fiscal year guidance, and we remain on track to achieve our long-range financial targets.

Before I go into details on our results, I want to highlight a few ways our innovation is helping customers answer new questions about biology. Early in 2026, we introduced the Billion Cell Atlas to address one of the biggest bottlenecks in applying AI to biology: the lack of functional datasets. AI models need large amounts of data to learn from, and in biology those models only work if the data is accurate, standardized, and reproducible. But these datasets don’t exist at scale.

There is no Internet of Biology. Our Billion Cell Atlas was designed to help address these limitations. Now over halfway complete, the Atlas is advancing toward an unprecedented AI-ready perturbation dataset that helps biopharma partners connect genetic signals to cellular mechanisms, strengthening target validation, improving disease understanding, and enabling accelerated drug discovery. By working directly with biopharma, we are integrating their input to ensure the proprietary dataset is relevant and built to maximize value for both our partners and Illumina.

GSK is the latest biopharmaceutical company to join the Billion Cell Atlas consortium to accelerate drug discovery, and we are seeing growing interest from other companies seeking access to the completed Atlas. We’ve learned a lot from our partners about how to build these datasets for AI, and we see multiple opportunities to address additional bottlenecks across drug discovery and development. We see this as a large, long-term opportunity and look forward to sharing more about our strategy in the coming quarters.

Earlier this month at ASHG, we brought together our assays, sequencing platforms, and software to show how customers can benefit using the Illumina Insight ecosystem. The most compelling examples came from customers themselves, who showed how combining genomics, transcriptomics, methylation, and proteomics is helping them see biology they could not see before, with work spanning bulk, single-cell, and spatial approaches. What is resonating with customers is that we are looking at their work from start to finish, making it easier to obtain all the components they need to drive high-quality insights while bringing down the total cost of the workflow.

On the analysis side, we launched the BioInsight platform, which brings our analysis applications, AI models, and curated biological data together in one place, reducing the need for customers to assemble and manage separate software tools. Through the platform, customers can also access SpliceAI 2, our new AI model that predicts how genetic changes affect RNA splicing. In rare disease research datasets, it identified 17% more disease-relevant splice variants than other splicing models.

I’m proud of the innovation our teams continue to deliver. Our view is that the next era of life sciences innovation will be powered not only by sequencing, but also by the software, AI, and differentiated data that unlock the power of the genome. Through BioInsight, Illumina is building the base for AI biology, enabling more powerful foundational models and virtual cell models with the potential to improve our ability to understand and predict biology.

As we move nearer to predicting biology, we see a path to using those insights to move healthcare toward a more proactive future, identifying risks sooner, preventing disease where possible, and intervening earlier. Now let me expand on our financial results, starting with our performance in the quarter. Customer demand for the NovaSeq X platform remains at very high levels. In the quarter we placed over 80 instruments. This equates to approximately 360 X placements over the last four quarters, more than in our first year of launch. This demand is being fueled by broader adoption of sequencing-based diagnostics and more sequencing-intense assays. As these instruments go live, they will support additional consumables revenue for years to come.

End-market growth rates for Rest of World sequencing consumables were similar in Q3 and Q2, with clinical growth of 14% and research and applied declines of 6%. We continue to expect mid-teens clinical growth and mid- to high-single-digit declines in research and applied sequencing consumables for Rest of World for 2026. Let me now turn to our outlook for the rest of the year. We are raising our full-year revenue outlook to reflect Q3 outperformance and a stronger Q4 driven by an increase in sequencing consumable revenue on a larger NovaSeq X installed base. We are also raising our full-year margin and EPS outlooks, and now expect operating margins of approximately 25% in the second half of 2026, up about 400 basis points versus 2024. I’m extremely proud of how our teams have managed investments through a challenging environment.

With each quarter that passes, it becomes more clear our strategy is working. We are achieving what we set out to do in 2024 and capitalizing on emerging opportunities to drive growth for the years to come. I want to thank our teams for the hard work and commitment to Illumina, and our customers for the trust they place in us. I look forward to sharing our 2027 guidance during the fourth quarter earnings call, and with that I’ll turn it over to Ankur to walk through our results and updated outlook.

Ankur Dhingra (Chief Financial Officer)

Thank you, Jacob, and good afternoon, everyone. I will walk through our third quarter financial results, provide additional color on revenue, earnings, and cash flow, and then discuss our updated outlook. As Conor mentioned earlier, all of our financial metrics will be on a non-GAAP basis, excluding tariff refunds. The reconciliations are provided in our financial disclosures. On a high level, our Q3 revenue and earnings came in ahead of our expectations and guidance. Rest of world organic revenue grew 5%, operating margin was 25%, 100 basis points above our guidance, and diluted EPS of $1.44 grew 7% year over year.

Now turning to the details, during the third quarter Illumina’s revenue was $1.17 billion, up 4.7% year over year on a rest of world organic basis, with currency and acquired revenue together contributing just under 3 percentage points to our reported growth. Sequencing consumables revenue of $792 million was up 6% year over year and up 5% on an organic rest of world basis. High-throughput volume drove most of the revenue growth as the NovaSeq X install base continues to expand and clinical customers continue to bring their instruments online.

Sales in clinical markets grew 14% on rest of the world, and we continue to expect mid-teens growth for clinical consumables in 2026. Sequencing consumable sales in research and applied markets declined 6% for rest of the world, and year to date, trends have remained consistent with our outlook entering the year. Revenue has grown sequentially each of the last two quarters, and we are seeing signs research activity is stabilizing. We continue to expect mid- to high-single-digit declines for research and applied consumables in 2026.

Moving to the NovaSeq X transition, approximately 84% of high-throughput volume and 60% of revenue is now on the X. In research and applied markets, 90% or greater volume has been on the X for each of the last five quarters, signaling the conversion to X is largely complete. Thus, we expect minimal transition pricing headwinds from these customers going forward. In clinical, 78% of volume is currently on the X, and we have seen the pace of conversion slow in recent quarters.

This is the dynamic you’ve heard us talk about: certain clinical customers are keeping current on-market assays on the 6000 while adding X capacity for new tests. We anticipate clinical conversion to reach 80% to 85% in the coming quarters, and as such, we expect the year-over-year pricing headwinds from the X transition to be lower in 2027 than in 2026 as the X conversion is nearly complete. We believe these charts are becoming less relevant in showing the price and volume dynamics impacting our revenue growth.

As such, we plan to discontinue showing this slide in our quarterly earnings presentations after Q4 2026 as it relates to sequencing activity. Gigabase output growth on our connected high and mid-throughput instruments remained above 30%, showing that demand remained strong. Sequencing instruments revenue of $106 million was down 2% year over year in Q3 on a rest of world organic basis. Higher NovaSeq X placements were offset by weaker instrument sales in our Europe, Middle East, Latin America region. X placements were up year over year in both clinical and research markets. Instrument sales still account for over 90% of our X placements, though we are seeing an increasing level of interest in lease-type arrangements with certain research customers.

Demand for the NovaSeq X remains elevated, especially among some of our largest clinical customers, where we saw several multi-unit capacity expansion orders. This is a testament to the value our customers place on the Illumina ecosystem today and for years into the future. Sequencing service and other revenue of $158 million was up 8% on a rest of world organic basis. As Jacob mentioned in his prepared remarks, we are gaining traction in our Billion Cell Atlas program as we continue to deliver data, converting more of our backlog to revenue. The pipeline and interest in our programs is very strong. Microarrays and other revenue of $110 million was up 2% on a rest of world organic basis and included SomaLogic revenue that outperformed our initial deal model.

Moving to the rest of the P&L, gross margin of 69.4% was up 20 basis points year over year. Operating margin was 25% for the quarter, 100 basis points above our guidance, driven by higher revenue and disciplined investments. EPS of $1.44 per diluted share came in above the high end of our guidance range and was up 7% versus Q3 of last year. Year to date, EPS is up 12% versus 2025. Moving to cash flow and the balance sheet, our cash flow from operations was $419 million, and we generated $378 million of free cash flow in the quarter. We repurchased $9 million worth of stock in the quarter, and at quarter end we had approximately $1.8 billion remaining under our current share repurchase authorizations, and we intend to continue to repurchase shares opportunistically. We ended the quarter with approximately $1.34 billion in cash, cash equivalents, and short-term investments, $1.79 billion in total debt, and a leverage ratio of approximately 1.4 times gross debt/last 12 months EBITDA.

Overall, we had a great third quarter, allowing us to raise our full-year guidance and reinforce our confidence in the progress we are making towards our financial targets. Now turning to our full-year 2026 guidance, starting with revenue, we are raising our revenue guidance by $30 million at the midpoint to $4.64 to $4.66 billion. This reflects our Q3 outperformance and increased expectations for sequencing consumable sales in the fourth quarter.

We still expect rest of world organic growth greater than 5%. Product revenue guidance ranges are unchanged, and we expect rest of world organic sequencing consumable growth of mid-single digits and low single-digit instrument growth in 2026. We now expect operating margins of approximately 23.6%, at the high end of our previous guidance with our higher revenue expectations for the year. This equates to diluted EPS guidance of $5.40 to $5.45, an increase of $0.08 at the midpoint versus our prior guide, and represents year-over-year growth of 12% to 13%.

For our fourth quarter of 2026, we expect revenue of $1.22 to $1.24 billion and rest of the world organic growth of approximately 4.5%, similar to Q3, and we expect EPS of $1.51 to $1.56 and an operating margin of approximately 25%. We have made tremendous progress this year. Adoption of sequencing across a wide range of clinical applications continues to grow, and our rapidly growing X install base provides for a strong consumables revenue stream for years to come. Revenue and customer interest in our Billion Cell Atlas are both expanding, and we’re just getting started on the large AI-based predictive biology opportunity that lies ahead. And our strong balance sheet and cash flows give us the flexibility to invest in areas of strategic growth that complement our innovative tool set.

We are excited about our long-term outlook. In closing, I want to thank the Illumina team for their continued focus and disciplined execution throughout the year. Thank you for joining our call today. I now invite the operator to open the line for Q&A.

OPERATOR

Thank you. At this time, if you would like to ask a question, please click on the raised hand button which can be found on the black bar at the bottom of your screen. To give as many analysts as possible the opportunity to ask a question, please limit yourself to one question. If you have additional questions, please raise your hand again to be put back into the queue. We will now pause a moment to assemble the queue. Thank you. Our first question is from Tycho Peterson from Jefferies.

Please unmute your line and ask your question.

Tycho Peterson (Analyst)

Hey, thanks, guys. Want to probe a little bit on the clinical consumable numbers? So first of all, any stocking orders to call out? You had that last quarter, obviously. And then 4Q implies, I think, low double-digit clinical growth. Is that the right jumping off point as we think about next year?

Jacob Thaysen (Chief Executive Officer)

Thanks, Tycho. And first and foremost, we continue to be pleased with the overall clinical performance. We see ourselves the full year in the mid-teens. We had here Q3 looked very much like Q2 with a 14%, 15% growth in clinical. And we continue this to expect that to continue. We will serve our customers, continue to serve them. There are always puts and takes in the quarter. But we feel good about how we see also Q4 coming along.

Tycho Peterson (Analyst)

Okay, and then if I go to—

Ankur Dhingra (Chief Financial Officer)

Go ahead, Tycho, to your question on the Q4. So overall, let’s say I’m raising the guidance for Q4 consumables. Our expectations that are going up given the strong placements that we continue to have. In terms of your growth rate question, I’ll recall last year Q4 was an 11% growth rate order on the sequencing consumables. So we’re still expecting a pretty good 5%, 6% growth in Q4 overall for the consumables. So that’s still a good growth on top of one of the more unique compares throughout last year.

So that would be one of the factors there. But our expectations are improving for Q4.

OPERATOR

Thank you. Our next question is from Vijay Kumar from Evercore ISI. Please unmute your line and ask your question.

Vijay Kumar (Analyst at Evercore ISI)

Hi Jacob and Ankur, thank you for taking my question. I guess I had a two-parter, if you will, Q4 jump-off here. I think it implies something like close, like 6% for rest of the world. And my question is, with that being the jump-off, what’s the right framework for ’27? Are the LRP targets still intact, and just given the strong instrument placements so far, could instruments become a headwind next year? How do you offset it?

Jacob Thaysen (Chief Executive Officer)

Thank you, Vijay. Thanks for that. And I can’t believe we had to go into question number two before we had a question about ’27 here. But let me share a few points here. I mean, first and foremost, we will come out with a full guide in our Q4 earnings call. So you gotta wait with the details. But we are still operating in very healthy market environments, especially the clinical market is strong. And we anticipate that clinical will be a growth driver for the company for the foreseeable future.

On top of that, there is now also opportunities in what we are seeing with our multi-omics capabilities, especially when the research market is coming back. We’re very well positioned for taking advantage of that. And on top of that, the AI market is just—we’re just scratching the surface on that. But there’s no doubt there is a substantial requirement or need for large data set to really train models. We can talk more about that later also. So that’s the overall framing for how we see the future. What I will leave you with is that, and how I think about the next year, is that we have, over the last quarters in this year, each quarter we have been growing our consumables above 5%. So we think that’s a good starting point here. We also see ourselves, of course, with what we talked about when we put the strategy in place in ’24, is that we see ourselves starting to move ourselves into growth.

And the main driver was that we would make the X transition, thereby also lapse the price impact of that. We are definitely on the latter end of that, as Ankur spoke to in the prepared remarks. And then what we are seeing with the elevated placements of X is that that will, of course, continue to be a driver also for the growth. So that’s how we think about it right now. I’ll leave you with that.

OPERATOR

Thank you. Our next question is from Doug Shenkel from UBS. Please unmute your line and ask your question.

Doug Schenkel (Analyst)

Good afternoon, and thank you for taking my questions regarding NovaSeq X demand. You’ve had several quarters of solid X placements now, you know, above 80 this quarter. Are you seeing any indication that recent strength reflects, you know, pull-forward, you know, in terms of what you might have expected in the future versus your last quarter and this quarter? Or is the sustainability of the purchasing cycle still pretty strong right now? And building off of that, how would you characterize the mix of demand this quarter between capacity expansion tied to clinical volume growth versus transitions and replacements? Thank you very much.

Jacob Thaysen (Chief Executive Officer)

Thanks, Doug. First and foremost, I don’t think there was any pull-forward. I think this is the normal course of business. But overall, you know, as also mentioned, we are very pleased with the placements we have done over the last four quarters, which have outperformed the first year of X placements when we launched. And it really speaks to a few things. It speaks to that, as I mentioned, the market conditions we are in and the opportunity, especially in the clinical space, are very healthy, and the new assays being put in place are very sequencing-intensive, and I think we haven’t even seen what is coming.

There’s a lot more coming here. The intensity will continue to increase. So I think we will continue to see a strong demand for the Xs going forward. Secondly, as you probably recall, at AGBT we were showcasing the innovations that we’re bringing to the X platform. So I also think that our customers are seeing that this is the platform to bet on for the future, with much more innovation coming out both in terms of quality of sequencing, turnaround times, and capacity of sequencing, plus all the multi-omics assays that are coming on. So we feel good about where we sit and also for the future.

OPERATOR

Thank you. Our next question is from Puneet Sudha from Leerink. Please unmute your line and ask your question.

Puneet Sudha (Analyst at Leerink Partners)

Yeah, hi Jacob, thanks for the question here. So just wanted to understand the dynamic on the sequencing consumables side. Is this a function of placing a number of instruments in the clinical space and applied, and obviously research, that is driving sort of a shift—lower cost per gigabase elasticity—and that seems to be… Is that what’s playing out here in the quarter? And then I just wanted to understand on ’27, is the high single-digit framework still intact? Just want to get your thoughts there. Thank you.

Jacob Thaysen (Chief Executive Officer)

Yes, I’m not sure I fully understood the first question on how the dynamics of sequencing consumables play out.

Puneet Sudha (Analyst at Leerink Partners)

Yeah, just in terms of are you seeing sort of a, you know, lower cost per gigabase from the labs coming to you essentially, you know, just because you’re placing a new instrument that is providing them, you know, more, you know, cheaper sequencing essentially right away in the first six months.

Jacob Thaysen (Chief Executive Officer)

Well, I think how we think about it, obviously, is that with the transition from the 6000 to the X there was a price step down, obviously, but it also generated substantially more volume, and that volume continues. So it’s not only a six-month volume gain we are seeing in the logic of a fixed budget, but we actually do see, especially in the clinical space, that our customers, as we’ve talked about before, are building bigger assays, also getting a better competitive positioning, and continuing to drive growth and introduction, or further advancement, especially in the oncology space of testing.

So I think that is playing out and it will continue to play out. We feel good about how our growth is sitting with consumables, and we think that’s going to continue. I will say, of course, as with many other companies, if you come to Illumina and are willing to sign up for large volume, we are very willing to also talk about what the right price point is for that. So that’s a conversation I like to have with customers. If they come with new assays they would like to put in place that require substantially more sequencing, we are absolutely more than willing to have that conversation and find how both companies can be successful.

That works well for ’27. As we mentioned all the way back in 2024, our strategy is to walk ourselves into growth. And we were predicting mid-single-digit for ’25, and we still are on track to deliver in ’27 a high single-digit range.

OPERATOR

Thank you. Our next question is from Sabu Nambi from Guggenheim. Please unmute your line and ask your question.

Sabu Nambi (Analyst at Guggenheim Securities)

Hey guys, thank you for taking my question. I have a question. Thinking ahead to 2027, I have two questions. First, do you still believe that new products have the potential to contribute one to two points of growth? Second, recognizing that you’re going to exit 2026 at an operating margin of 25%, is that the right launch point, keeping in mind more progress towards operating improvement and improving mix as you move past pricing headwinds? Thank you.

Jacob Thaysen (Chief Executive Officer)

Yeah, so let me start with the first one, and just a reminder: we are still very much in Illumina operating in Q4, and we want to deliver Q4 before we go into details of ’27. But I will say that what we talked about in ’24—that we would add new growth drivers through both our new assays that will come out and obviously also data—is playing out well. We have come out over the last 18 months with a very, very significant multi-omics portfolio, and with the acquisition of SomaLogic we are very well positioned in that space, and that has momentum, obviously from a low base.

But this will start to actually reflect in our numbers both here in ’26, but particularly in ’27 and beyond. So we feel good about that. I think, related to our operating margin, again, if you look over the last few years we have increased or improved our margins by 400 basis points, and we feel really good about what the team has achieved over the past years. We have had a lot of headwinds that we didn’t anticipate, and I think the team have shown that we can deliver this year. Electronic component pricing, shipping costs, and obviously also some tariffs have been big headwinds, and we have been able to deliver expansion on margins.

So I feel good about where we are, and I think there is more to come in the years to come—and also in 2027.

OPERATOR

Thank you. Our next question is from Luke Sergot from Barclays. Please unmute your line and ask a question.

Luke Sergot (Analyst at Barclays)

Great, thanks. Sorry, I was muted. I just wanted to follow up on the implied growth here of, you know, the exit rate on the clinical sequencing and how to think about next year. You’ve got all the liquid biopsy players; you’re seeing strong growth in their samples, and then you have the conversion there from a lot of them converting to the X. And so, like, how does that play out with initial reagent concordance studies and then when that starts to flip on back onto the X?

Jacob Thaysen (Chief Executive Officer)

Well, I think it is playing out as we expect. I mean, what we’ve been very pleased with over the last four quarters is the elevated placements of the X. And as you know, we are in a razor–razor blade logic in the company. So the more instruments we place—nobody buys an instrument to put in the corner—they all put it there to generate more revenue. So obviously every time you place an X, that is a revenue generator for the years to come. And so with that, and with the elevated placement, we feel good about the growth opportunity in the consumables also for the years to come.

As I mentioned before, the clinical market is very healthy. I know many of you want to sit and have a conversation about whether we grow 14, 15, or 16% in clinical. The takeaway is that this is a strong market. There are still a lot of applications that are just coming online. So we feel good about that, and we see that that has legs. If you just look at a great point here, the U.S. cancer business has continued to grow very, very strongly over the last four quarters in clinical, and we don’t think that will stop.

Ankur Dhingra (Chief Financial Officer)

Yeah, that’s well covered on the clinical growth side. Luke, to your point about clinical, the only thing I would add is: still look at the number of tests that have recently come on market, the volume growth of on‑market tests, and the number of clinical trials that are still expected to read out over the next one year, implying the new tests that would be coming to the market. And that’s a very rich pipeline.

OPERATOR

Thank you. Our next question is from Dan Arias from Stifel. Please unmute your line and ask your question.

Dan Arias (Analyst at Stifel)

Yeah, hi guys. Thanks for the question here. Jacob. You hear me? Okay, thanks, Jacob. As you guys try to tap into this training‑model virtual cell AI opportunity, can you just talk about how you see genome pricing playing into that? I mean, obviously you think that the X is the box to bet on, but there are some pretty cheap genomes that are being talked about out there, pushing down to 50 bucks. So to what extent do you think that you might need to revisit the price elasticity discussion in order to make sure that you really take those large projects?

Can you win those with the current pricing scheme, or do you think it takes whatever the new 35D flow cell might bring on genome cost?

OPERATOR

Yes, go ahead.

Jacob Thaysen (Chief Executive Officer)

Yep. Well, first and foremost we feel really good where we are. I think AI models are way beyond just whole‑genome pricing. There’s a lot going into this. So let me just try to frame this a little bit. First and foremost, I think we see a big opportunity in what I would call predictive biology. But if you want to step into that new logic or world, which could have a substantial impact on everything we do in our space—and if you think about life science as a whole—this could revolutionize our understanding of biology, and it could definitely also have big disruption overall in the healthcare industry, where Illumina is very well positioned.

Because it’s not only about the price of sequencing here, it’s about the ability to develop and create large datasets that go across both the genome, the transcriptome, the methylome, and of course also the proteome. Combine that together, look at that from a bulk, single‑cell, and also a spatial context. There’s no other company in this industry that has the broad portfolio and also has the ability to create those datasets. We started with the 1‑billion‑cell—it’s a great example of a functional dataset that is not only looking at something in time, but when you try to see what is happening to a cell when you change or up‑ or down‑regulate a gene. So I think these are the types of datasets that you want to look for. So we feel good about where we are. Look, Illumina has been in a world for many years to deal with elasticity. We love elasticity. We can address any opportunity that we need to, and we see this market could be much, much bigger.

And we have both the capabilities and the innovation pipeline to be a very strong player in that—both developing the datasets ourselves, but also looking at a flywheel where, together with our customers, we create datasets, our customers can add on to those datasets, and we can create bigger and bigger datasets for training those models. So we’re excited about that, and I’m not super concerned about what others are doing right now.

OPERATOR

Thank you. Our next question is Carl Mixon from Canaccord Genuity. Please unmute your line and ask your question. Carl Mixon from Canaccord Genuity. Please unmute your line and ask your question. We’ll go to our next question, which is Dave Westenberg from Piper Sandler. Please unmute your line and ask your question.

Dave Westenberg (Analyst at Piper Sandler)

Hey, thanks, guys. Sorry to belabor the same clinical sequencing question, but I think we’re all kind of trying to get at the same thing: clinical 70% of consumables and how fast can it grow to kind of get you into that long-term high single-digit kind of growth rate. So as we’re looking at the Signatera, the Shield, etc., we want to know, even in the X transition, what kind of pricing—like discounts or kind of growth—that you can get from these customers net of that discount as we get into the ’27s, ’28s, ’29s, because we know you are kind of stuck on this X, but we also want to know, like, when we’re looking at that 20, 25, 30% volume kind of growth rate on that, you know, how much can Illumina continue to grow?

Because we are confident that you’re going to get participate. We just want to know kind of the magnitude of that participation. Thank you.

Jacob Thaysen (Chief Executive Officer)

No, thanks, Dave. That’s very specific into where we could go pricing-wise. I would leave you that is that, as I mentioned before, we work very closely with our customers. I think many of our customers are seeing, of course, opportunities to build bigger and bigger assays. That goes for therapy selection, MRD, and also, of course, now MCED coming alive. So what we are seeing is that obviously we will continue to have conversations. We will continue to make sure that both we can grow in alignment with our customers. There might always be some certain difference between the different growth rates, but what we are taking away is that when our customers are growing, we are also growing very healthy. So we believe there are more opportunities in that space. We think there are more growth opportunities for Illumina.

So I think we have proven over the last few quarters or a few years that we can step back into growth. The conversation 18 months ago was very, very different. I think all of you were questioning whether we could grow at all. Now we sit with mid-single growth in consumables. Now you’re questioning how much we can take that. I think you should see that we have a track record that shows that we can continue to expand our growth rate in those regions or consumables.

Ankur Dhingra (Chief Financial Officer)

Yeah, one thing I would add there is that last quarter we added about the overall consumables growth rate in U.S.-Canada, which is a proxy of some of the customers that you’re talking about. And within our U.S. business the growth rate within that clinical is well above the 14% that you’re talking about. So we’re reasonably well indexed that way. And always remember the big customers make up a reasonable part of our business. But Illumina’s business is global, and it both benefits and otherwise from the clinical activity across the world.

Within our U.S. business that growth rate on the clinical is well above that 14%.

OPERATOR

Thank you. Our next question is Kyle Mikson from Canaccord Genuity. Please unmute your line.

Kyle Mikson (Analyst at Canaccord Genuity)

Thanks, guys. Sorry about that before. Congrats on the quarter. Wanted to ask about—different, different way to ask about the ’27 beyond. I guess, you know, congratulations on kind of executing on the strategy day from 2024 sort of numbers and the framework and all that. But I mean, is there upside to the high single-digit growth going forward? I think, obviously, as was discussed before, you got AI, multi-omics, maybe a research inflection, clinical. I feel like that could be kind of longer term as well. So could you approach double-digit growth, perhaps while expanding operating margins to the high 20s, and what could that take really?

Jacob Thaysen (Chief Executive Officer)

Yeah, look, Kyle, I think this is absolutely not impossible. I mean, there’s definitely upside to a high single-digit growth. But remember a few things here. When we were laying out our strategy in ’24 we were in a negative growth arena, and now we have stepped ourselves into mid-single-digit growth. I think we want to also show we can do high single-digit before we go beyond that. But I do, I mean—and you can also see over the last few years—there’s been a lot of headwinds that this industry and Illumina specifically had to deal with. You can pick the one you want to talk about, but there’s been plenty. So we think that we are operating in a significant market opportunity space, particularly in clinical, and we think that is going to continue to expand over the years. We are very well positioned when the research segment is coming back with our multi-omics portfolio, where we see a lot of grants moving in that direction right now.

And then, of course, the whole AI space where there will be substantial data sets generated and looked for. And I think that is something that, with our 1 billion cell atlas, shows that we are very well committed. It’s not about just selling sequencers anymore in that space. Our customers—and the broad spectrum of customers—is looking for companies like Illumina that can actually generate those data sets. They’re much more interested in what those data sets can generate and, obviously, the models—how they can perform—rather than the sequencing itself.

So we are very well positioned, and there are certainly opportunities to grow beyond that.

OPERATOR

Thank you. Our next question is from Dan Leonard from RBC. Please unmute your line and ask a question.

Dan Leonard (Analyst at RBC Capital Markets)

Thank you. Jacob and Ankur, you talked a bunch about BioInsight. When would BioInsight become more visible in the P&L? Would that be as soon as next year, or is that a farther out event?

Jacob Thaysen (Chief Executive Officer)

Yeah. So I think, first of all, we actually established BioInsight approximately a year ago, which was a combination of our software part, which is actually doing extremely well also. And I think for those of you who visited our booth and at our symposiums at ASHG, we really presented how important software is for the ecosystem. So very excited about that. But we combined that with the data because there’s a lot of synergies between the two. You have to generate data, but you also have to develop models on top of that.

So as we mentioned in ’24 also, the data and, of course, the multi-omics business would start to generate 1% to 2% in the latter part—so here in ’27 of our strategic period—when we look into, and that is playing out very well. But I think, depending on how that AI opportunity plays out, which actually looks very, very promising, this could be substantially bigger. But maybe, Anko, you have comments on that also?

Ankur Dhingra (Chief Financial Officer)

Yeah, I think our view right now is somewhere in 2027 there should be some sort of color. We should be able to begin to add the billion cell atlas, and then the second gen—we’ve talked about it—expanding to 5 billion cells certainly would be one of the first drivers within that. Jacob mentioned we actually have a very broad spectrum of customers in discussion about the Cell Atlas and several other new bio AI-based applications that they are working on.

But we anticipate that somewhere in 2027 it does become more visible, and the whole point around the new products and BioInsight adding 1 to 2 points of growth for 2027 would certainly be an area.

OPERATOR

Thank you. Our next question is from Casey Woodring from J.P. Morgan. Please unmute your line and ask your question.

Casey Woodring (Analyst at J.P. Morgan)

Great. Thank you for taking my questions. I guess two just quick cleanups on 4Q. Could you quantify what the extra selling week means in terms of a tailwind to the quarter, and then are you expecting a budget flush? So that’s the first part. And then just there’s been some noise this week on U.S. trade restrictions on some of your Chinese competitors. Meanwhile, you know, you guys are still dealing with China regarding the unreliable entities list.

So just curious, has there been any change in your position with the Chinese authorities? And now that you’ve returned to growth year on year in the region in 3Q, you know, what are you seeing on the ground with customer comfort given geopolitical concerns? Thank you.

Jacob Thaysen (Chief Executive Officer)

Yeah, thanks, Casey. And first and foremost, we are, of course, very pleased to be back to growth in China. Our focus has been all the way through this time to work closely with our Chinese customers, continue to drive innovation, and obviously also work with the regulators in-country to make sure that we have a path for the future. We feel good. We are very committed to China and to serve our customers. We believe there’s a huge opportunity there.

We learned about this situation, as many of you did, yesterday morning, and, of course, we are trying to better understand what the impact is. That’s what I know at this point. From a budget flush perspective, we are not anticipating any specific budget flush besides what’s normal for Q4. Anko, maybe you take—

Ankur Dhingra (Chief Financial Officer)

Yeah, let me cover the Q4 question there, Casey. So Jacob covered the budget flush side, so we haven’t assumed anything meaningful there. So if there is indeed a stronger budget flush, that would be a potential upside into Q4. Now, regarding your question about the extra week, let me contextualize that for everyone. Illumina reports on a fixed number of weeks per quarter basis, usually, which means that once every four years we end up with an extra week to complete the cycle and come back into a consistent 13-week cycle.

The extra week in Q4 has always been part of our guidance throughout this year. That extra week falls during the holidays and very early part of January, so the actual impact on revenue is quite minimal. That’s not the window where we see a lot of top-line activity. So, fairly minimal impact on revenue. On the expenses side, of course, we have the cost of our people cost for one extra week. But both of those have been part of our guidance and thinking all throughout the year.

And just to be clear, our raise of consumables expectations for Q4 is entirely from the strong placements and the customer demand that we’ve seen so far.

OPERATOR

Thank you. Our next question is from Dan Brennan from TD Cowen. Please unmute your line and ask your question.

Dan Brennan (Analyst at TD Cowen)

Great. Thank you. Maybe just one on AI. I know there’s been a lot of discussion there so far, but if we think about the next, say, three-plus years or so, is the opportunity more on the service side for Illumina through BioInsight, or is it going to be substantial opportunity on the placing boxes and traditional flow cells? I’m just wondering how that splits out. And then related to that, you talk about the billion cell atlas, so is the way to think about it right now, from what you’re seeing in your pipeline and backlog, is it more going to be on single-cell and multi-omics versus traditional whole genome?

And then a quick follow-up just on Nova X pricing in the quarter—just if you can give any color on that, that’d be helpful. Thank you.

Jacob Thaysen (Chief Executive Officer)

Okay, so good question, Dan. I think how we think about the AI opportunity, as I mentioned, the industry, right, huge data set that is both reproducible and standardized. And the problem is when you have individual PIs or individual postdocs or others that are sitting and building small data sets, these are quite noisy and it’s very difficult for models to actually train well on those. We have seen many times that they are better in predicting where the data is coming from rather than predicting the biology that is what the experiments were actually telling you.

So that’s why we’re seeing a big demand and a big ask for customers that would like us to help generate large data sets that can help build those. Because we can. When we do those large data sets, obviously we also spend time on ensuring they’re reproducible, standardized, and so on. And I think there’s a big demand for that. So there’s certainly a huge opportunity for Illumina in what you can call a service business format. At the same time, we are of course in the business of placing instruments. So you could imagine there’s a lot of customers saying we can get access to the Illumina data sets. Can we augment that with our own data that we might want to keep to ourselves because of various reasons? So I think we will see a lot of demand for that also. So it’ll be a blend.

But versus how we traditionally think about it, we also think there’s a big service opportunity. This plays extremely well to where Illumina is sitting today. The capabilities we built up over the last few years in this space are probably not fully understood, but we have really become experts in how to think about or how to do perturbation for different cell lines and what it takes to build that quality. And that’s what some of our customers are really seeing a lot of benefits in.

Ankur Dhingra (Chief Financial Officer)

Yeah. Let me add just a couple more things on the BCA and the way you think about it. Jacob covered it extensively. The power of our portfolio, by having significant part of the multiomic workflows, is that the pathway where we stand today looks like combination of whole genome and proteomics, combination of single cell and transcriptomics, combination of spatial and transcriptomics. All of those combinations, based on either specific organs where the research is or specific disease pathways where the research is happening.

That combination of different multiomics would vary, but that’s what different types of data sets could be. As we’ve said, our billion cell atlas is a starting point which is helping prove causality in many areas already. But we do see a pathway for multiple combinations, as I was describing, of additional data sets that can be very meaningful and powerful going forward.

OPERATOR

Thank you. Our next question is from Dave Westenberg from Piper Sandler. Please unmute your line and ask your question.

Dave Westenberg (Analyst at Piper Sandler)

Oh, whoops. I didn’t even know I was going to be back on. Maybe I’ll just ask a quick one on China. Did I see that right? That was growth in the quarter. One was reported and one was Re Annix 7 and double digits. You know what happened there, I guess? And then secondly, you know, how should we think about China on a go-forward basis? You know, we obviously had the unreliable entity list but, you know, we also didn’t kind of expect that. And again, I’m sorry for that. It’s a bad question. I didn’t even know I was going to be back on.

Jacob Thaysen (Chief Executive Officer)

Thank you, Dave. We always like to hear from you. So thank you for the question. I think, as I mentioned before, how to think about China is that we have been committed, shown that we are committed, to find a path forward in China. I think we have good relationships there and first and foremost we are focusing on what we can control, and what we can control is to continue to support our customers, continue to drive innovations. You see a lot of interest for a lot of our innovations in China and we believe the opportunity in China is big.

I think the Chinese customers want to see Illumina playing in the market space and we will continue to do our best to have a future in China.

OPERATOR

Thank you. Our final question is from Tycho Peterson, from Jefferies. Please unmute your line and ask your question.

Tycho Peterson (Analyst)

Hey, thanks for taking the follow-up. Ankur, you called out operating leases, more operating leases. Understand that was in context of the research market, but can you maybe elaborate there and any chance it spills over to clinical?

Ankur Dhingra (Chief Financial Officer)

Yeah, so great question, Tycho. Both the entire operating leases as well as reagent rental models, we have had them on the offer for a fairly long period of time. But the demand there has been growing both in the research as well as for clinical customers as well. We haven’t seen that a whole lot with our largest clinical customers who have been in extensive capacity expansion. But when you look at the mid-sized clinical laboratories all over the world, including in the US and in Europe, that’s where we’ve seen interesting demand pick up in that space.

But that offering is available to all our customers globally.

Tycho Peterson (Analyst)

Thank you.

OPERATOR

Thank you. This concludes the Q and A section of the call. I would now like to turn the call back to Conor McNamara for closing remarks.

Conor McNamara (Head of Investor Relations)

Thank you for joining us today. A replay of this call will be available in the Investor section of our website. This concludes our call and we look forward to seeing you at upcoming events.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.

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Collaboration brings together Schneider's asset-based expertise with Norfolk Southern's eastern U.S. intermodal network to deliver greater efficiency and more flexible capacity for shippers

Key Takeaways

Norfolk Southern and Schneider are partnering to advance domestic intermodal growth by combining Norfolk Southern's eastern U.S. rail network and infrastructure investments with Schneider's asset-based intermodal services.The partnership gives shippers a more scalable alternative to over-the-road transportation, with improved efficiency, flexible capacity and greater supply chain resilience.Schneider brings 35 years of intermodal expertise, professional company drivers, company-owned tractors, approximately 23,900 chassis and 26,800 containers and more than 60 North American intermodal rail hubs.Norfolk Southern is investing ahead of customer demand across its 22-state intermodal network, including gateway capacity, terminal expansions, double-stack clearance improvements, reliability upgrades and enhanced security., /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) and Schneider National, Inc. (NYSE: SNDR), a premier multimodal provider of transportation, intermodal and logistics services, today announced a strategic agreement that combines Schneider's 35 years of intermodal expertise, professional company drivers, company-owned assets and logistics capabilities with Norfolk Southern's extensive eastern U.S. intermodal network and ongoing infrastructure investments.

Norfolk Southern Corporation

The partnership brings together two networks built around breadth, consistency and customer growth at a time when demand for intermodal solutions continues to build. Schneider's Intermodal Service is backed by company-owned tractors, approximately 23,900 chassis and 26,800 containers, more than 60 intermodal rail hubs across North America, and professional company dray drivers who complete more than 90% of Schneider's domestic dray moves. Norfolk Southern's intermodal volumes grew 3% in the third quarter of 2026, supported by steady consumer demand, favorable truck-market dynamics and network improvements.

"Schneider's Intermodal network is built on a strong asset-based foundation that gives customers the control, consistency and reliability they depend on," said Michael Baumgardt, Executive Vice President of Intermodal and Logistics at Schneider. "As we transition our primary eastern rail provider to Norfolk Southern, we'll expand access to key markets, increase network flexibility and create new opportunities to better serve our customers. It will strengthen Schneider's competitive position and enhance the reliable service experience our customers expect."

As one of the largest intermodal carriers in North America, Schneider brings more than three decades of intermodal expertise to help customers move freight with truck-like reliability and rail-driven efficiency. In addition to its company-owned containers, lightweight chassis, company-operated dray fleet, and company drivers, Schneider also supports performance through priority rail access, proactive execution across long-haul lanes, satellite tracking for real-time visibility, and advanced security measures. Aligning with Norfolk Southern reflects Schneider's commitment to evolving with customer needs and changing freight flows. Norfolk Southern's expansive eastern network broadens Schneider's reach, creating new opportunities to grow with existing customers, attract new freight, and convert truckload shipments to intermodal.

"Customers are taking a broader view of intermodal than ever before, and we are investing ahead of that demand," said Ed Elkins, EVP and Chief Commercial Officer at Norfolk Southern. "By combining Norfolk Southern's network reach, as well as our terminal investments and capacity, with Schneider's proven logistics expertise, owned equipment and customer relationships, we are creating new opportunities to move freight across North America and make rail a stronger part of the domestic supply chain."

The agreement builds on Norfolk Southern's strategy to invest ahead of customer growth across its 22-state intermodal network. Recent and ongoing projects include a new service between Cincinnati and Atlanta; double-stack clearance improvements connecting the Midwest and New England through the East Edge route; and terminal expansions in Ohio, Michigan, North Carolina and Illinois. At facilities across Atlanta, Louisville, Harrisburg, Croxton, Chesapeake, Charlotte, Chicago and St. Louis, Norfolk Southern is also improving pavement, lighting, storage areas, maintenance facilities, truck access routes and security systems to strengthen reliability, driver turn times and the everyday terminal experience customers depend on.

This collaboration reflects a shared commitment to making intermodal transportation more dependable and more accessible for customers. By bringing together complementary strengths and investing for long-term growth, Schneider and Norfolk Southern are helping shape the future of domestic freight transportation.

About Norfolk Southern
Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a customer-centric and operations-driven freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver more than 7 million carloads annually, from agriculture to consumer goods. Norfolk Southern also has the most extensive intermodal network in the eastern U.S. It serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as major ports in the Gulf of Mexico and Great Lakes. Learn more by visiting www.NorfolkSouthern.com.

About Schneider
Schneider is a premier multimodal provider of transportation, intermodal and logistics services, helping customers turn supply chain complexity into greater control. Backed by more than 90 years of operational expertise and innovation, Schneider delivers reliable, flexible and responsible solutions that help businesses move freight with confidence.

Schneider's broad portfolio includes Regional and Long-Haul Truckload, Expedited, Dedicated, Bulk, Intermodal, Brokerage, Warehousing, Supply Chain Management, Port Logistics and Logistics Consulting. Through its digital marketplace, Schneider FreightPower®, the company gives shippers access to an expanded, highly flexible capacity network and carriers access to quality drop-and-hook freight.

For more information about Schneider, visit Schneider.com or follow the company socially on Facebook, LinkedIn and X: @WeAreSchneider. Always Delivering. Always Ahead. 

SOURCE Norfolk Southern Corporation

Forget Airlines—These Trucking Stocks Are Shifting Into High GearSaia NASDAQ: SAIA reported record third-quarter revenue and tonnage for 2026, as the less-than-truckload carrier cited continued network expansion, pricing initiatives and service improvements. The company also authorized up to $250 million in share repurchases as capital expenditures begin to moderate following a period of substantial network investment.

Third-quarter revenue rose 17% year over year to $982.5 million. Tonnage per workday increased 8.9%, while shipments per workday rose 0.8%. Revenue per shipment, excluding fuel surcharge, increased 5.8% from a year earlier and 2.7% sequentially from the second quarter.

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3 Trucking Stocks Getting Big Analyst Upgrades NowOperating income reached $122.3 million, up 17.5% from adjusted operating income in the prior-year period. Saia’s operating ratio was 87.6%, unchanged from the adjusted third-quarter 2025 result. Diluted earnings per share were $3.41, up 21.4% from adjusted diluted EPS of $2.81 a year earlier.

Network investments and service metrics President and CEO Fritz Holzgrefe said the company’s investments in terminals, equipment, technology and personnel are strengthening its national LTL offering. Since the start of 2022, Saia has added 45 terminals and relocated or expanded more than 25 other locations. Those efforts increased operational door count by approximately 32% and tractor and trailer capacity by more than 35%, according to the company.

Why Goldman Sachs Suddenly Boosted These 3 Trucking StocksMore than 60% of U.S. ZIP codes are now within 50 miles of a Saia terminal, compared with about 35% in 2017. The company operates 219 facilities, executives said during the call.

Saia introduced its REV initiative in June, focused on improving transit times, capabilities and shipment visibility. The initial phase improved transit times across more than 2,000 lanes, Holzgrefe said, adding that lanes benefiting from faster transit times have posted outsized volume growth.

The company reported handling, or freight touches, improved 1.3% from the second quarter and more than 2% from the prior-year quarter. Its cargo claims ratio reached a company-record 0.3%, an improvement of more than 40% year over year. Saia also said its internal Net Promoter Score increased 15% from the third quarter of 2025.

“Our expanded footprint, combined with technology investments and network optimization, has improved efficiency, reduced freight handling, and enhanced service levels across the network,” Holzgrefe said.

Pricing, mix and terminal ramp-up Saia reported a 10.8% contractual renewal rate during the quarter. Executives attributed pricing progress to service performance, broader market coverage and the company’s ability to address more customer needs through its national network.

Average length of haul declined 1% to 885 miles. Weight per shipment increased 8.1% year over year and 1.2% sequentially, reflecting mix optimization efforts. Because higher shipment weight typically reduces yield, yield excluding fuel surcharge declined 2.2% from the prior year. However, yield excluding fuel surcharge increased 1.5% sequentially despite the higher shipment weight.

Holzgrefe said the company is focused on identifying customers that value service reliability rather than targeting a single ideal freight profile. He said a mix of heavier shipments and time-sensitive one- and two-day freight can support the company’s strategy when customers are willing to pay for reliable, damage-free delivery.

Recently opened terminals continued to improve, according to Chief Financial Officer Matt Batteh. Terminals opened in 2023 and 2024 improved their operating ratio by 40 basis points year over year, while operating income from those facilities rose 22%. The newer locations are operating in the low 90s on an operating-ratio basis and remain below the company average, Batteh said, but are building density and generating higher revenue-per-shipment growth than legacy terminals.

Holzgrefe said Saia’s Los Angeles region remained a headwind, with revenue in that higher-revenue-per-shipment market down by low single digits year over year.

Costs, cash flow and capital allocation Total operating expenses increased 16.9% from adjusted third-quarter 2025 operating expenses. Salaries, wages and benefits rose $46.7 million, or 11.6%, driven primarily by wage increases and higher performance-related compensation. Total headcount increased 0.4% year over year, though headcount excluding line-haul drivers declined 0.6%.

Fuel expense rose 55.2% as the national average diesel price increased 48.1% from a year earlier. Claims and insurance expense declined 10%, reflecting fewer preventable accidents and favorable claims experience.

Truck and rail purchased transportation represented 15.7% of total line-haul miles, up from 12% a year ago. Rail accounted for nearly 39% of purchased transportation miles, and Batteh said rail remains cost-advantaged on a per-mile basis. Underlying purchased transportation rates per mile, excluding fuel surcharge, increased about 4% year over year.

Saia generated more than $240 million in free cash flow year to date and ended the quarter with $203 million in cash and $100 million of total debt. The newly authorized $250 million repurchase program gives the company flexibility to return capital when management considers repurchases attractive, subject to market conditions and investment priorities.

Batteh said the company expects capital expenditures in 2027 to be roughly 13% to 14.5% of revenue, with longer-term capital spending expected to range from 12% to 15% of revenue. He said the largest real-estate investment years are behind the company, although strategic investments will continue.

Fourth-quarter outlook For October, Saia said shipments were up about 2% year over year and tonnage was up about 10%, which Batteh characterized as in line with seasonal expectations. The company expects normal seasonal shipment trends through November and December and assumes fuel remains around October’s average level.

Historically, Saia’s operating ratio has worsened by roughly 250 to 300 basis points sequentially from the third to fourth quarter. Based on current trends, management said it expects the fourth-quarter sequential increase to be about 200 basis points, which would represent year-over-year operating-ratio improvement of more than 200 basis points.

The company also announced the appointment of Todd Fowler as an independent director. Holzgrefe said Fowler brings experience in transportation, logistics, supply-chain technology and capital markets.

About Saia (NASDAQ:SAIA)Saia, Inc is a transportation and logistics company headquartered in Johns Creek, Georgia. Through its primary subsidiary, Saia LTL Freight, the company provides less-than-truckload transportation, moving palletized and other freight shipments that do not require a full trailer. Its services include standard and time-definite delivery, expedited transportation, guaranteed services, and shipment tracking.

Saia also provides non-asset-based logistics services through Saia Logistics Services, which helps customers arrange freight transportation using third-party carriers.

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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Kimco Realty Corporation (KIM) Q3 2026 Earnings Call October 29, 2026 8:30 AM EDT

Company Participants

David Bujnicki - Senior Vice President of Investor Relations & Strategy
Conor Flynn - Chief Executive Officer
David Jamieson - Executive VP, COO & Director
Ross Cooper - President, Chief Investment Officer & Director
Glenn Cohen - Executive VP & CFO
Kathleen Thayer - Executive VP, Chief Accounting Officer & Treasurer
Will Teichman - Executive VP, Chief Innovation & Transformation Officer

Conference Call Participants

Michael Goldsmith - UBS Investment Bank, Research Division
Alexander Goldfarb - Piper Sandler & Co., Research Division
Richard Hightower - Barclays Bank PLC, Research Division
Ronald Kamdem - Morgan Stanley, Research Division
Michael Griffin - Evercore ISI Institutional Equities, Research Division
Ravi Vaidya - Mizuho Securities USA LLC, Research Division
James Feldman - Wells Fargo Securities, LLC, Research Division
Juan Sanabria - BMO Capital Markets Equity Research
Greg McGinniss - Scotiabank Global Banking and Markets, Research Division
Floris Gerbrand Van Dijkum - Ladenburg Thalmann & Co. Inc., Research Division
Samir Khanal - BofA Securities, Research Division
Omotayo Okusanya - Deutsche Bank AG, Research Division
Caitlin Burrows - Goldman Sachs Group, Inc., Research Division
Craig Mailman - Citigroup Inc., Research Division
Linda Tsai - Truist Securities, Inc., Research Division
Michael Mueller - JPMorgan Chase & Co, Research Division
Paulina Rojas Schmidt - Green Street Advisors, LLC, Research Division
Michael Gorman - BTIG, LLC, Research Division

Presentation

Operator

Hello, everyone. Thank you for joining us, and welcome to Kimco Realty's Third Quarter 2026 Earnings Conference Call.

[Operator Instructions]

I will now hand the conference over to Dave Bujnicki, Senior Vice President of Investor Relations and Strategy. Please go ahead.

David Bujnicki
Senior Vice President of Investor Relations & Strategy

Thank you all for joining Kimco's quarterly earnings conference call. With me today are Conor Flynn, CEO; Ross Cooper, President and Chief Investment Officer; Dave Jamieson, Executive Vice President and Chief Operating Officer; Glenn Cohen, Executive Vice President and CFO; as well as

Oil Shorts Are Crowded, 3 Names That Could Bring on a SqueezePatterson-UTI Energy NASDAQ: PTEN reported higher third-quarter revenue, earnings and adjusted EBITDA as U.S. onshore activity strengthened and pricing improved across its drilling and completion operations.

Total revenue rose 9% sequentially to $1.314 billion in the third quarter. Net income attributable to common shareholders was $28 million, or $0.07 per share, including $18 million of pre-tax other operating income that primarily reflected a $22 million gain from the sale of rigs and components intended for Venezuela. Adjusted EBITDA, excluding the one-time gain, totaled $264 million.

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Why Goldman Sachs Just Upgraded These 3 Stocks and What It MeansPresident and Chief Executive Officer Andy Hendricks said the recovery in U.S. onshore activity gained momentum during the quarter, supported by demand for premium equipment, digital technology, automation and natural gas-powered assets. He said the company expects activity to remain relatively steady in the fourth quarter before potentially stepping higher in 2027 as customer budgets reset.

Drilling Activity and Pricing Improve In drilling services, Patterson-UTI recorded third-quarter revenue of $417 million and adjusted gross profit of $149 million. Its U.S. contract drilling business averaged 101 operating rigs and logged 9,249 operating days during the quarter.

Is NexTier-Patterson UTI Deal A Sign Of More Consolidation Ahead?Hendricks said average drilling rates have risen from the low-$30,000-per-day range earlier in the year to the mid-$30,000 range, with leading-edge pricing above that level. Rigs emerging from the company’s upgrade program have secured rates several thousand dollars per day above its company average, according to Hendricks.

The company ended the quarter with its rig count up 16 rigs, or 18%, from the April trough. It said reactivation costs have averaged about $1 million per rig since activity bottomed, excluding upgrades needed to meet customer specifications. Management said it has only 8 to 10 rigs that can be economically reactivated at current market pricing before incremental capital requirements rise materially.

For the fourth quarter, Patterson-UTI expects its drilling services rig count to average about 104 rigs and finish the period above that level. It forecast segment adjusted gross profit of approximately $150 million.

Management said it is weighing domestic opportunities against international prospects, including potential drilling-rig deployments in Argentina. The company has also sold rigs and components for 10 AC electric high-spec rigs from the U.S., along with other rigs from Colombia, for use in Venezuela.

Completion Pricing Rises Despite Supply-Chain Delays Completion services generated $808 million in third-quarter revenue and $133 million in adjusted gross profit. Pricing increased by a mid-single-digit percentage from the second quarter, although activity was affected by nonproductive time tied to sand availability in South Texas and trucking constraints in the Permian Basin.

Hendricks said the issues were temporary and that operations had returned to full efficiency during the fourth quarter. He added that some customers paid standby charges during the disruption, which he characterized as a change from prior market conditions.

Management expects fourth-quarter completion services adjusted gross profit of approximately $140 million, reflecting higher pricing than the third quarter while accounting for seasonal and weather-related factors.

The company said it sees a more constructive medium-term completion-market outlook as drilling activity rises and older diesel-powered equipment is retired. Patterson-UTI estimates that legacy diesel assets account for about 20% of U.S. completion-industry horsepower and said higher diesel prices are making those assets increasingly uneconomic to maintain.

By year-end, nearly 90% of Patterson-UTI’s active horsepower is expected to be powered at least partly by natural gas. The company plans to continue replacing retiring diesel equipment with Emerald 100% natural gas-powered direct-drive assets in 2027 while keeping total completion capacity relatively steady.

Management said completion pricing had declined about 30% over the preceding three years and has recovered roughly one-third of that decline. Hendricks said the company needs additional price recovery and returns above its cost of capital before committing to expand overall industry capacity.

Drilling Products Posts Record Results Since Ulterra Deal Drilling products revenue increased 21% sequentially to $110 million, while adjusted gross profit reached $51 million. The segment delivered its highest quarterly revenue and adjusted gross profit since Patterson-UTI acquired Ulterra in 2023.

The company cited revenue growth across U.S., Canadian and international markets, market-share gains in drill bits and stronger pricing. International revenue increased sequentially despite higher costs and operational challenges associated with conflict in the Middle East. Markets outside North America represented more than 20% of drilling products revenue over the past 12 months.

Management said activity in Saudi Arabia is expected to weigh on the segment in the fourth quarter. Patterson-UTI projects drilling products adjusted gross profit will decline 5% to 10% sequentially, primarily due to lower anticipated Middle East drilling activity.

Revenue from new downhole-tool offerings rose more than 40% from the second quarter and represented about 5% of segment revenue. The company expects downhole-tool revenue to roughly double in 2026 compared with 2025. It also said footage drilled using its bits in geothermal applications quadrupled from a year earlier, though geothermal remains less than 5% of annual revenue.

Cash Flow, Capital Spending and Shareholder Returns Chief Financial Officer Andy Smith said working-capital trends improved in the third quarter, contributing to a significant increase in adjusted free cash flow from first-half levels. The company expects another strong free-cash-flow quarter in the fourth quarter and meaningful improvement in 2027.

Patterson-UTI invested $141 million in capital expenditures during the quarter, including $55 million in drilling services, $63 million in completion services and $20 million in drilling products. It expects 2026 capital expenditures, net of asset-sale proceeds, to be below $600 million.

The company ended the quarter with $339 million in cash, no borrowings on its $500 million revolving credit facility and no senior-note maturities until 2029. During the quarter, it returned $62 million to shareholders through repurchases of 2 million shares and a $0.10-per-share dividend. Its board approved another quarterly dividend of $0.10 per share, payable Dec. 15 to shareholders of record on Dec. 1.

Management said future capital allocation will prioritize investments that improve return on capital and free cash flow per share, while also preserving balance-sheet flexibility, returning cash to shareholders and potentially reducing debt.

About Patterson-UTI Energy (NASDAQ:PTEN)Patterson-UTI Energy, Inc is an oilfield services company that provides drilling, completion and production-related services to oil and natural gas exploration and production companies. Its operations are primarily focused on onshore oil and gas development in the United States.

The company provides contract land drilling services through a fleet of rigs, as well as directional drilling and related technologies used to guide wellbores. Patterson-UTI also offers pressure pumping and hydraulic fracturing, wireline, well-completion, equipment rental and other services that support the development and maintenance of unconventional wells.

Patterson-UTI expanded its completion-services business through its 2023 merger with NexTier Oilfield Solutions.

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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FAIR LAWN, N.J., Oct. 29, 2026 (GLOBE NEWSWIRE) -- Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the holding company for Columbia Bank ("Columbia"), reported net income of $5.2 million, or $0.02 per basic and diluted share, for the quarter ended September 30, 2026, as compared to $14.9 million, or $0.07 per basic and diluted share, for the quarter ended September 30, 2025. For the nine months ended September 30, 2026, the Company reported net income of $32.8 million, or $0.14 per basic and diluted share, as compared to $36.1 million, or $0.16 per basic and diluted share, for the nine months ended September 30, 2025.

For the quarter ended September 30, 2026, the Company reported core net income (a non-GAAP financial measure) of $40.6 million, or $0.16 per basic and diluted share, as compared to $15.4 million, or $0.07 per basic and diluted share for the quarter ended September 30, 2025. For the nine months ended September 30, 2026, the Company reported core net income of $70.6 million, or $0.30 per basic and diluted share, as compared to $37.1 million, or $0.17 per basic and diluted share for the nine months ended September 30, 2025. See the "Reconciliation of GAAP to Non-GAAP Financial Measures" included in this release, detailing non-core items, related core net income, per share amounts and select performance ratios.

Mr. Thomas J. Kemly, President and Chief Executive Officer commented: “During the quarter, our team successfully completed the second-step conversion offering and simultaneous acquisition of Northfield Bancorp, Inc. (“Northfield”), and executed a series of transactions to improve earnings, reduce interest rate and credit risk on the balance sheet by selling securities and delinquent, nonperforming and criticized and classified assets, as well as, materially reducing our exposure to New York City rent regulated multifamily loans.”

Mr. Kemly noted, “In addition, we continue to attract experienced commercial bankers and other professionals to grow our Company and deliver premier lending, deposit and treasury solutions to deploy our capital and to capture current market share in the markets we serve. We continue to believe that our approach to community relationship banking, and our disciplined focus on capital deployment will drive strong earnings growth and stockholder returns."

Financial Highlights

Total assets increased $5.4 billion to $17.6 billion at September 30, 2026 from $12.2 billion at June 30, 2026, primarily due to the acquisition of Northfield, and the second-step conversion stock offering.Return on average assets for the quarter ended September 30, 2026 decreased to 0.13% as compared to 0.55% for the quarter ended September 30, 2025, while core return on average assets for the quarter ended September 30, 2026 increased to 0.97% as compared to 0.56% for the quarter ended September 30, 2025.Net interest margin of 2.96% for the quarter ended September 30, 2026 increased by 67 basis points compared to 2.29% for the quarter ended September 30, 2025, and increased 52 basis points compared to 2.44% for the quarter ended June 30, 2026.Total gross loans increased $3.1 billion, or 37.2%, for September 30, 2026, as compared to June 30, 2026, due primarily to $3.2 billion in loans acquired in the Northfield acquisition. Commercial real estate, construction and commercial business loans, gross, increased $899.8 million, or 23.0% for September 30, 2026, as compared to June 30, 2026, primarily due to the Northfield acquisition.Total deposits increased $3.1 billion, or 32.2%, for September 30, 2026, as compared to June 30, 2026, mainly due to $3.8 billion in deposits acquired in the Northfield acquisition, partially offset by $970.1 million in stock subscription proceeds that were transferred to stockholders' equity. Non-interest-bearing deposits increased $771.6 million, or 49.6%, as compared to June 30, 2026, mainly due to $747.9 million in deposits acquired in the Northfield acquisition.The Company's Board of Directors declared a quarterly cash dividend of $0.05 per share to be paid on November 25, 2026, to stockholders of record as of November 10, 2026. Significant Transactions Impacting the Three Months Ended September 30, 2026

The Company's growth, financial condition and earnings for the quarter ended September 30, 2026 were materially impacted by a series of transactions including:

Completion of its second-step conversion stock offering and raising approximately $1.6 billion of common stockholders' equity net of underwriting and transactional expenses. Total shares outstanding following completion of the stock offering and Northfield acquisition were 269,539,984.The acquisition of Northfield on July 20, 2026, added approximately $5.2 billion in total assets, $3.2 billion in loans receivable and $202.3 million in loans held-for-sale, $1.2 billion in securities, $646.4 million in borrowings, and $3.8 billion in deposits, inclusive of purchase accounting adjustments. The Company recorded a bargain purchase gain of $25.7 million, net of tax, and a core deposit intangible $76.2 million during the quarter ended September 30, 2026. Merger-related expenses recognized for the quarter ended September 30, 2026 were $30.6 million. The Company currently plans to complete the core system conversion during the first quarter of 2027.Purchase of $1.1 billion of debt securities designated as both available for sale and held to maturity, with a weighted average yield of 4.80% and a duration of approximately 2.0 years. Approximately one-third of these debt securities purchased have coupons that adjust monthly. Furthermore, the Company repaid and prepaid $353.5 million of borrowings with a weighted average cost of 3.97%.The sale of $650.6 million of Northfield debt securities available for sale resulting in no gain or loss, as the securities were marked-to-market as part of purchase accounting adjustments. The proceeds from the sales were reinvested in debt securities with a similar yield, but with improved cash flow stability in various rate scenarios.The sale of $254.7 million of debt securities available for sale at a net loss of $40.8 million. With the proceeds, the Company purchased $221.2 million of debt securities. The yield on the securities purchased was 445 basis points higher than the securities sold, with lower average lives and duration, and the Company currently expects to earn approximately $9.3 million in additional interest income over the next twelve months as a result of this transaction.Sold $55.6 million of commercial real estate and multifamily loans originated by Northfield that would be criticized or classified assets under the Company’s risk rating system. This transaction resulted in a loss on sale of loans of $1.1 million for the quarter ended September 30, 2026.Entered into a letter of intent to sell loans of $246.2 million of unpaid principal, collateralized by New York City rent regulated multifamily properties originated by Northfield. The loans selected for sale were deemed to have the highest credit risk based upon the percentage of units that were rent regulated, the estimated loan to value or the debt service coverage. This transaction resulted in a loss on loans of $5.9 million for the quarter ended September 30, 2026. The sale closed on October 27, 2026. The Company’s remaining exposure to New York City rent regulated multifamily loans was $164.6 million, or less than 1.0% of total assets at October 27, 2026.Entered into a letter of intent to sell $9.1 million of delinquent and nonperforming residential real estate loans originated by Columbia Bank. The Company recorded a loss of approximately $900,000 related to the transaction. This sale closed in October 2026.
  Results of Operations for the Three Months Ended September 30, 2026 and September 30, 2025

Net income of $5.2 million was recorded for the quarter ended September 30, 2026, a decrease of $9.6 million compared to net income of $14.9 million for the quarter ended September 30, 2025. The decrease in net income was primarily attributable to a $23.8 million decrease in non-interest income and a $52.4 million increase in non-interest expense, partially offset by a $57.0 million increase in net interest income, a $512,000 decrease in provision for credit losses and a $9.1 million decrease in income tax expense.

Net interest income was $114.4 million for the quarter ended September 30, 2026, an increase of $57.0 million, or 99.3%, from $57.4 million for the quarter ended September 30, 2025. The increase in net interest income was primarily attributable to a $72.2 million increase in interest income partially offset by a $15.2 million increase in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields on loans, while the increase in interest expense was primarily due to an increase in the average balance of both deposits and borrowings. Accretion of loan yield adjustments for the quarter ended September 30, 2026 totaled $6.8 million. Prepayment penalties, which are included in interest income on loans, totaled $771,000 for the quarter ended September 30, 2026, compared to $767,000 for the quarter ended September 30, 2025.

The average yield on loans for the quarter ended September 30, 2026 increased 33 basis points to 5.37%, as compared to 5.04% for the quarter ended September 30, 2025. Interest income on loans increased due to an increase in both the average balance and yield on loans mainly related to the Northfield acquisition. The average yield on securities for the quarter ended September 30, 2026 increased 55 basis points to 3.96%, as compared to 3.41% for the quarter ended September 30, 2025. The average yield on other interest-earning assets for the quarter ended September 30, 2026 decreased 137 basis points to 3.87%, as compared to 5.24% for the quarter ended September 30, 2025, mainly due to an increase in the average balance of other interest-earning assets invested in lower earning interest-bearing cash accounts, coupled with a 91 basis point decrease in the dividend rate received on Federal Home Loan Bank stock.

Total interest expense was $78.3 million for the quarter ended September 30, 2026, an increase of $15.2 million, or 24.2%, from $63.0 million for the quarter ended September 30, 2025. The increase in interest expense was primarily attributable to increases in the average balance of interest-bearing deposits and borrowings partially offset by a 31 basis point decrease in the average cost of interest-bearing deposits coupled with a 17 basis point decrease in the average cost of borrowings. Interest expense on deposits increased $13.3 million, or 26.8%, primarily due to the increase in the average balances as a result of the Northfield acquisition during the quarter ended September 30, 2026. Interest expense on borrowings increased $2.0 million, or 14.7%, for the quarter ended September 30, 2026 as compared to the quarter ended September 30, 2025 due to an increase in the average balance of borrowings, partially offset by a decrease in the average cost of borrowings.

The Company's net interest margin for the quarter ended September 30, 2026 increased 67 basis points to 2.96% when compared to 2.29%, for the quarter ended September 30, 2025, predominately due to a decrease in the average cost of interest-bearing liabilities. The weighted average yield on interest-earning assets increased 18 basis point to 4.99% for the quarter ended September 30, 2026 as compared to 4.81% for the quarter ended September 30, 2025. The average cost of interest-bearing liabilities decreased 33 basis points to 2.81% for the quarter ended September 30, 2026 as compared to 3.14% for the quarter ended September 30, 2025.

The provision for credit losses on loans for the quarter ended September 30, 2026 was $1.8 million, a decrease of $512,000, or 21.8%, from $2.3 million for the quarter ended September 30, 2025. The decrease in the provision for credit losses was primarily attributable to lower net charge-offs, partially offset by an increase in loan balances.

Non-interest (loss) income was $(13.9) million for the quarter ended September 30, 2026, a decrease of $23.8 million, or 241.0%, from $9.9 million for the quarter ended September 30, 2025, mainly due to a $40.8 million increase in the loss on securities transactions coupled with a $7.6 million loss on transfer of loans to held-for-sale as previously discussed. These decreases were partially offset by a bargain purchase gain of $25.7 million, net of tax, related to the Northfield acquisition.

Non-interest expense was $97.5 million for the quarter ended September 30, 2026, an increase of $52.4 million, or 116.3%, from $45.1 million for the quarter ended September 30, 2025. The increase was primarily attributable to an increase in compensation and employee benefits expense of $14.2 million, an increase in occupancy expense of $2.6 million, an increase in merger-related expenses of $30.6 million, and an increase in amortization of intangible assets of $2.9 million due to the Northfield acquisition. The increase in compensation and employee benefits expense was due to an increase in the number of employees and related employee benefits due to the Northfield acquisition and annual merit increases. The increase in occupancy expense was due to the costs related to the Northfield acquisition.

An income tax benefit of $4.1 million was recorded for the quarter ended September 30, 2026, a decrease of $9.1 million, as compared to income tax expense of $5.0 million for the quarter ended September 30, 2025, mainly due to lower pre-tax income partially offset by non-deductible merger-related expenses. The Company's effective tax rate was 16.7% and 25.0% for the quarters ended September 30, 2026 and 2025, respectively.

Results of Operations for the Nine Months Ended September 30, 2026 and September 30, 2025

Net income of $32.8 million was recorded for the nine months ended September 30, 2026, a decrease of $3.3 million, or 9.0%, compared to net income of $36.1 million for the nine months ended September 30, 2025. The decrease in net income was primarily attributable to a $24.8 million decrease in non-interest income, and a $60.6 million increase in non-interest expense partially offset by a $76.3 million increase in net interest income, a $645,000 decrease in provision for credit losses, and a $5.2 million decrease in income tax expense.

Net interest income was $237.7 million for the nine months ended September 30, 2026, an increase of $76.3 million, or 47.3%, from $161.4 million for the nine months ended September 30, 2025. The increase in net interest income was primarily attributable to a $84.7 million increase in interest income partially offset by a $8.4 million increase in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of loans coupled with an increase in the average yield on loans. Accretion of loan yield adjustments for the nine months ended September 30, 2026 totaled $6.8 million, mainly related to the Northfield acquisition. Prepayment penalties, which are included in interest income on loans, totaled $1.5 million for the nine months ended September 30, 2026, compared to $1.6 million for the nine months ended September 30, 2025.

The average yield on loans for the nine months ended September 30, 2026 increased 20 basis points to 5.16%, as compared to 4.96% for the nine months ended September 30, 2025. Interest income on loans increased due to an increase in both the average balance and yield on loans. The average yield on securities for the nine months ended September 30, 2026 increased 23 basis points to 3.70%, as compared to 3.47% for the nine months ended September 30, 2025. The average yield on other interest-earning assets for the nine months ended September 30, 2026 decreased 126 basis points to 4.13%, as compared to 5.39% for the nine months ended September 30, 2025, mainly due to an increase in the average balance of other interest-earning assets invested in lower earning interest-bearing cash accounts, coupled with a lower dividend rate received on Federal Home Loan Bank stock.

Total interest expense was $196.1 million for the nine months ended September 30, 2026, an increase of $8.4 million, or 4.5%, from $187.7 million for the nine months ended September 30, 2025. The increase in interest expense was primarily attributable to an increase in the average balances of interest-bearing deposits and borrowings, partially offset by a 30 basis point decrease in the average cost of interest-bearing deposits coupled with a 27 basis point decrease in the average cost of borrowings mainly related to the Northfield acquisition. Interest expense on deposits increased $6.2 million, or 4.2%, for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025, due to an increase in the average balance of deposits, while interest expense on borrowings increased $2.2 million, or 5.7%, for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025, due to the increase in the average balance of borrowings.

The Company's net interest margin for the nine months ended September 30, 2026 increased 46 basis points to 2.66% when compared to 2.20% for the nine months ended September 30, 2025, due to an increase in the average yield on interest-earning assets coupled with a decrease in the average cost of interest-bearing liabilities. The weighted average yield on interest-earning assets increased 10 basis points to 4.85% for the nine months ended September 30, 2026 as compared to 4.75% for the nine months ended September 30, 2025. The average cost of interest-bearing liabilities decreased 30 basis points to 2.87% for the nine months ended September 30, 2026 as compared to 3.17% for the nine months ended September 30, 2025.

The provision for credit losses for the nine months ended September 30, 2026 was $7.1 million, a decrease of $645,000, or 8.3% from $7.7 million for the nine months ended September 30, 2025. The decrease in the provision for credit losses was primarily attributable to a decrease in net charge-offs, which totaled $2.9 million for the nine months ended September 30, 2026 as compared to $5.2 million for the nine months ended September 30, 2025, partially offset by an increase in loan balances.

Non-interest income was $3.7 million for the nine months ended September 30, 2026, a decrease of $24.8 million, or 87.1%, from $28.5 million for the nine months ended September 30, 2025. The decrease was primarily attributable to a $40.8 million increase in the loss on securities transactions, coupled with a $7.7 million increase in the loss on transfer of loans. These decreases were partially offset by a bargain purchase gain of $25.7 million, net of tax, resulting from the Northfield acquisition, a $2.7 million increase in bank-owned life insurance due to income from the acquisition of such policies in the Northfield acquisition, death benefit claims in the 2026 period, and income related to the transition and exchange into higher yielding bank-owned life insurance policies.

Non-interest expense was $194.4 million for the nine months ended September 30, 2026, an increase of $60.6 million, or 45.3%, from $133.8 million for the nine months ended September 30, 2025. The increase was primarily attributable to an increase in compensation and employee benefits expense of $19.8 million, an increase in occupancy expense of $4.0 million, an increase in data processing and software expenses of $2.7 million and an increase in merger-related expenses of $33.3 million, partially offset by a decrease of $2.6 million in professional fees. The increase in compensation and employee benefits expense was due to an increase in the number of employees and related employee benefits due to the Northfield acquisition and annual merit increases. The increase in occupancy expense was due to the costs related to the Northfield branches acquired.

Income tax expense was $7.0 million for the nine months ended September 30, 2026, a decrease of $5.2 million, as compared to income tax expense of $12.3 million for the nine months ended September 30, 2025, mainly due to a decrease in pre-tax income. The Company's effective tax rate was 49.7% and 25.4% for the nine months ended September 30, 2026 and 2025, respectively. The increase in the 2026 effective tax rate was due primarily to non-deductible merger-related expenses.

Balance Sheet Summary

Total assets increased $6.5 billion, or 59.4%, to $17.6 billion at September 30, 2026 from $11.0 billion at December 31, 2025. The increase in total assets was primarily attributable to increases in cash and cash equivalents of $118.0 million, debt securities available for sale of $1.7 billion, debt securities held to maturity of $516.0 million, loans held-for-sale of $211.4 million, loans receivable, net, of $3.4 billion, bank-owned life insurance of $191.8 million and other assets of $157.6 million, mainly due to assets acquired in the Northfield merger.

Cash and cash equivalents increased $118.0 million, or 34.6%, to $458.8 million at September 30, 2026 from $340.8 million at December 31, 2025. The increase was primarily attributable to proceeds raised through the offering and cash and cash equivalents of $95.2 million acquired in the Northfield acquisition.

Debt securities available for sale increased $1.7 billion, or 151.0%, to $2.8 billion at September 30, 2026 from $1.1 billion at December 31, 2025. The increase was primarily attributable to $1.2 billion of securities acquired in the Northfield acquisition, and purchases of $1.7 billion of securities, consisting primarily of U.S. government obligations and mortgage-backed securities which were purchased with proceeds from the second-step conversion offering. These increases were partially offset by sales of securities with an amortized cost of $643.3 million which were acquired in the Northfield acquisition and the sale of an additional $213.9 million of seasoned securities sold as part of a balance sheet repositioning transaction, which resulted in a realized loss of $40.8 million for the quarter ended September 30, 2026. The Company sold predominantly fixed rate, low-yielding debt securities and used the proceeds to repay high costing borrowings acquired from Northfield and purchase higher-yielding debt securities to improve the net interest rate margin in the future. The increase in debt securities available for sale also included a decrease of $33.9 million in the unrealized loss on securities available for sale.

Debt securities held to maturity increased $516.0 million, or 130.2%, to $912.2 million at September 30, 2026 from $396.2 million at December 31, 2025. The increase was attributable to purchases of securities of $542.8 million, consisting primarily of U.S. government obligations and mortgage-backed securities, partially offset by maturities on securities of $14.9 million, and repayments on securities of $13.1 million.

Loans held-for-sale increased to $211.4 million, at September 30, 2026 from zero at December 31, 2025. A portion of the loans held-for-sale acquired in the Northfield acquisition along with $9.1 million of residential real estate loans originated by Columbia Bank were transferred to loans held-for-sale at fair value and were subsequently sold in October 2026.

Loans receivable, net, increased $3.4 billion, or 41.9%, to $11.7 billion at September 30, 2026 from $8.2 billion at December 31, 2025, primarily due to $3.2 billion of loans acquired in the Northfield acquisition excluding loans held-for sale. One-to-four family real estate loans, multifamily loans, commercial real estate loans, construction loans, commercial business loans and home equity loans and advances increased $84.0 million, $2.0 billion, $774.9 million, $33.1 million, $253.3 million, and $193.8 million, respectively. The allowance for credit losses for loans increased $51.4 million to $118.6 million at September 30, 2026 from $67.2 million at December 31, 2025, primarily due to the Northfield acquisition and organic loan growth during the nine months ended September 30, 2026. As part of the merger with Northfield, the Company acquired $3.5 billion in loans, net of purchase accounting adjustments related to interest rates. The allowance for credit losses increased due to the day 1 Northfield CECL adjustment of $47.1 million recorded as part of the Northfield acquisition.

Bank-owned life insurance increased $191.8 million, or 67.7%, to $474.9 million at September 30, 2026 from $283.1 million at December 31, 2025, as the Company acquired $187.1 million of bank-owned life insurance policies in the Northfield acquisition, and $8.7 million of income was recognized from bank-owned life insurance for the nine months ended September 30, 2026.

Other assets increased $157.6 million, or 47.0%, to $493.3 million at September 30, 2026 from $335.7 million at December 31, 2025 primarily due to $134.2 million in other assets acquired as part of the Northfield acquisition, an increase in net pension assets of $27.0 million, and an increase of $16.6 million in swap contracts.

Total liabilities increased $4.5 billion, or 46.0%, to $14.4 billion at September 30, 2026 from $9.9 billion at December 31, 2025. The increase was primarily attributable to an increase in total deposits of $4.1 billion, primarily due to the addition of Northfield deposits, an increase in borrowings of $312.8 million, and an increase in accrued expenses and other liabilities of $87.4 million. The increase in total deposits consisted of increases in non-interest-bearing demand deposits, interest-bearing demand deposits, money market accounts, savings and club accounts, and certificates of deposits of $810.1 million, $1.4 billion, $254.3 million, $767.6 million and $868.5 million respectively. The increase in each category of deposits largely reflected the impact of deposits acquired from Northfield while also reflecting an increase related to the impact of continuing business development and competitive pricing strategies. The increase in accrued expenses and other liabilities included $67.0 million acquired from Northfield, which primarily consisted of lease liabilities, accrued expenses and benefit plan related liabilities, and an increase in collateral pledged for interest rate swaps. The $312.8 million increase in borrowings was driven by borrowings acquired from Northfield which included a net increase in short-term borrowings of $175.0 million, coupled with new long-term borrowings of $161.8 million, and long-term subordinated debentures assumed from Northfield totaling $62.0 million, partially offset by repayments of $82.0 million in maturing long-term borrowings. Included in these borrowings were $646.4 million in borrowings assumed in the Northfield acquisition, of which $195.6 were subsequently prepaid, resulting in a $196,000 loss on extinguishment of debt.

Total stockholders’ equity increased $2.0 billion, or 172.7%, with a balance of $3.2 billion at September 30, 2026 from $1.2 billion and December 31, 2025. The increase in stockholders' equity reflected $1.6 billion in capital stock issued in the Company's second-step conversion coupled with $404.3 million in capital stock issued in conjunction with the acquisition of Northfield. The increase also included net income of $32.8 million, partially offset by dividends declared and paid of $12.9 million.

Asset Quality

The Company's non-performing loans at September 30, 2026 excluding purchased credit deteriorated ("PCD") loans, totaled $36.5 million, or 0.31% of total gross loans, as compared to $38.0 million, or 0.46% of total gross loans, at December 31, 2025. The $1.5 million decrease in non-performing loans was primarily attributable to a decrease in non-performing one-to-four family loans of $5.4 million. This decrease was mainly due to the transfer of $4.9 million of non-performing one-to-four family loans to loans held-for-sale in September 2026, which were sold in October 2026, a decrease in non-performing commercial business loans of $2.8 million, and a decrease in non-performing construction loans of $4.1 million. The decrease in non-performing construction loans was due to one loan of $5.9 million being transferred to other real estate owned in March 2026 and subsequently sold in September 2026. These decreases were partially offset by an increase of $11.6 million in commercial real estate loans, which included a $10.6 million loan on a six-story mixed use building, located in Philadelphia, Pennsylvania, which contains apartments and commercial/storage space designated as non-performing during the 2026 period. Non-performing assets as a percentage of total assets totaled 0.21% at September 30, 2026, as compared to 0.34% at December 31, 2025.

For the quarter ended September 30, 2026, net charge-offs totaled $1.5 million, as compared to net charge-offs of $1.2 million for the quarter ended September 30, 2025. For the nine months ended September 30, 2026, net charge-offs totaled $2.9 million, as compared to net charge-offs of $5.2 million for the nine months ended September 30, 2025. Charge-offs for the nine months ended September 30, 2025 included $3.2 million in charge-offs related to PCD equipment finance loans purchased in May 2025.

The Company's allowance for credit losses on loans was $118.6 million, or 1.02% of total gross loans, at September 30, 2026, compared to $67.2 million, or 0.82% of total gross loans, at December 31, 2025. The increase in the allowance for credit losses for loans was primarily due to the day 1 Northfield CECL adjustment of $47.1 million recorded as part of the Northfield acquisition.

About Columbia Financial, Inc.

The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiary Columbia Bank (the "Bank") and the Bank's wholly-owned subsidiaries. Columbia Financial, Inc. is a Maryland corporation organized as Columbia Bank's parent stock holding company. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates more than 100 full-service banking offices and offers traditional financial services to consumers and businesses in its market area, including select counties in New Jersey, and Brooklyn and Staten Island New York.

Forward Looking Statements

Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “projects,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates, higher inflation and their impact on national and local economic conditions; changes in monetary and fiscal policies of the U.S. Treasury, the Board of Governors of the Federal Reserve System and other governmental entities; the impact of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; the impact of changing political conditions or federal government shutdowns; the impact of legal, judicial and regulatory proceedings or investigations, competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect a borrowers’ ability to service and repay the Company’s loans; the effect of acts of terrorism, war or pandemics, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; changes in the value of securities in the Company’s portfolio; the success of the balance sheet repositioning transactions we implemented during the third quarter of 2026; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and securities; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s consolidated financial statements will become impaired; cyber-attacks, computer viruses and other technological risks that may breach the security of our systems and allow unauthorized access to confidential information; the inability of third party service providers to perform; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits and effectively manage liquidity; risks related to the implementation of acquisitions, dispositions, and restructurings; and the risk that the Company may not be successful in the implementation of its business strategy, or its integration of acquired financial institutions and businesses.

In addition, with respect to the Company’s recently completed acquisition of Northfield Bancorp (“Northfield”), such risks, uncertainties and assumptions, include, among others, the following: (i) the possibility that the anticipated benefits of the proposed transaction, including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which the combined company operates; (ii) the possibility that the integration of the two companies may be more difficult, time-consuming or costly than expected; and (iii) the impact of purchase accounting with respect to the proposed transaction, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine their fair value and credit marks. Forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, those set forth in Item 1A of the Company's Annual Report on Form 10-K and those set forth in the Company's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company's actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

Non-GAAP Financial Measures

Reported amounts are presented in accordance with U.S. generally accepted accounting principles ("GAAP"). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its "core" operating results, and relevant performance ratios on a consistent basis and excludes material non-routine items which affect the GAAP reporting of results of operations, and relevant performance ratios. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods presented. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names.

The Company also provides measurements and ratios based on tangible stockholders' equity. These measures are commonly utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

A reconciliation of GAAP to non-GAAP financial measures are included at the end of this press release. See "Reconciliation of GAAP to Non-GAAP Financial Measures".

 COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Financial Condition
(In thousands)
  September 30, December 31, 2026
 2025
Assets(Unaudited)  Cash and due from banks$458,686 $340,695Short-term investments 112  111Total cash and cash equivalents 458,798  340,806    Debt securities available for sale, at fair value 2,816,204  1,122,017Debt securities held to maturity, at amortized cost (fair value of $853,439, and $367,289 at September 30, 2026 and December 31, 2025, respectively) 912,183  396,233Equity securities, at fair value 5,440  6,802Federal Home Loan Bank and Federal Reserve Bank stock, at cost 149,572  64,604Loans held-for-sale, at fair value 211,410  —    Loans receivable 11,786,760  8,292,010Less: allowance for credit losses 118,594  67,201Loans receivable, net 11,668,166  8,224,809    Accrued interest receivable 67,735  41,490Office properties and equipment, net 113,119  82,985Bank-owned life insurance 474,888  283,094Goodwill and intangible assets 191,703  120,302Other assets 493,275  335,651Total assets$17,562,493 $11,018,793    Liabilities and Stockholders' Equity   Liabilities:   Deposits$12,561,523 $8,444,079Borrowings 1,496,279  1,183,472Advance payments by borrowers for taxes and insurance 67,295  45,792Accrued expenses and other liabilities 272,112  184,722Total liabilities 14,397,209  9,858,065    Stockholders' equity:   Total stockholders' equity 3,165,284  1,160,728Total liabilities and stockholders' equity$17,562,493 $11,018,793     COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)
  Three Months Ended
September 30, Nine Months Ended
September 30,  2026   2025   2026   2025 Interest income:(Unaudited) (Unaudited)Loans receivable$152,636  $103,792  $358,128  $298,548 Debt securities available for sale and equity securities 25,403   9,858   46,941   29,901 Debt securities held to maturity 4,879   2,886   10,486   8,619 Federal funds and interest-earning deposits 7,738   2,623   13,425   7,924 Federal Home Loan Bank and Federal Reserve Bank stock dividends 2,001   1,258   4,799   4,079 Total interest income 192,657   120,417   433,779   349,071 Interest expense:       Deposits 62,840   49,569   155,285   149,058 Borrowings 15,436   13,462   40,803   38,599 Total interest expense 78,276   63,031   196,088   187,657         Net interest income 114,381   57,386   237,691   161,414         Provision for credit losses 1,832   2,344   7,100   7,745         Net interest income after provision for credit losses 112,549   55,042   230,591   153,669         Non-interest (loss) income:       Demand deposit account fees 3,027   2,037   7,164   5,940 Bank-owned life insurance 3,768   2,133   8,682   5,982 Title insurance fees 714   684   2,201   2,191 Loan fees and service charges 1,103   1,570   4,088   4,370 (Loss) gain on securities transactions (40,849)  —   (40,849)  336 Change in fair value of equity securities (447)  714   (1,429)  1,294 (Loss) gain on sale of loans (7,567)  401   (6,792)  901 Bargain purchase gain, net of tax 25,689   —   25,689   — (Loss) gain on sale of other real estate owned (1,770)  —   (1,770)  281 Other non-interest income 2,424   2,328   6,685   7,216 Total non-interest (loss) income (13,908)  9,867   3,669   28,511         Non-interest expense:       Compensation and employee benefits 43,462   29,248   106,524   86,764 Occupancy 8,663   6,055   22,242   18,208 Federal deposit insurance premiums 2,331   1,783   5,743   5,402 Advertising 915   512   2,228   1,606 Professional fees 2,377   2,590   5,995   8,624 Data processing and software expenses 5,748   4,457   15,366   12,621 Merger-related expenses 30,641   —   33,283   — Loss on extinguishment of debt 196   —   196   — Amortization of intangible assets 3,489   560   4,611   1,592 Other non-interest expense, net (317)  (119)  (1,779)  (980)Total non-interest expense 97,505   45,086   194,409   133,837         Income before income tax (benefit) expense 1,136   19,823   39,851   48,343         Income tax (benefit) expense (4,095)  4,955   7,034   12,270         Net income$5,231  $14,868  $32,817  $36,073         Earnings per share-basic$0.02  $0.07  $0.14  $0.16 Earnings per share-diluted$0.02  $0.07  $0.14  $0.16 Weighted average shares outstanding-basic (1) 250,984,115   224,468,686   232,335,137   224,275,297 Weighted average shares outstanding-diluted (1) 251,662,369   224,468,686   232,571,404   224,275,297         (1) As result of the second-step conversion, all prior period share information has been subsequently revised to reflect the 2.2000 exchange ratio.    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Average Balances/Yields
    For the Three Months Ended September 30,  2026   2025  Average Balance Interest and Dividends Yield / Cost Average Balance Interest and Dividends Yield / Cost (Dollars in thousands)Interest-earnings assets:           Loans$11,286,773  $152,636 5.37% $8,165,132  $103,792 5.04%Securities 3,031,705   30,282 3.96%  1,481,219   12,744 3.41%Other interest-earning assets 999,680   9,739 3.87%  293,903   3,881 5.24%Total interest-earning assets 15,318,158   192,657 4.99%  9,940,254   120,417 4.81%Non-interest-earning assets 1,217,777       871,010     Total assets$16,535,935      $10,811,264                 Interest-bearing liabilities:           Interest-bearing demand$3,142,993  $16,824 2.12% $1,904,963  $10,685 2.23%Money market accounts 1,640,021   8,829 2.14%  1,369,986   9,763 2.83%Savings and club deposits 1,239,886   2,742 0.88%  640,834   1,056 0.65%Certificates of deposit 3,554,073   34,445 3.85%  2,838,737   28,065 3.92%Total interest-bearing deposits 9,576,973   62,840 2.60%  6,754,520   49,569 2.91%FHLB advances 1,404,011   14,471 4.09%  1,213,787   13,317 4.35%Subordinated notes 45,753   834 7.23%  —   — —%Junior subordinated debentures 7,070   131 7.35%  7,051   145 8.16%Total borrowings 1,456,834   15,436 4.20%  1,220,838   13,462 4.37%Total interest-bearing liabilities 11,033,807  $78,276 2.81%  7,975,358  $63,031 3.14%            Non-interest-bearing liabilities:           Non-interest-bearing deposits 2,421,615       1,489,014     Other non-interest-bearing liabilities 306,139       219,406     Total liabilities 13,761,561       9,683,778     Total stockholders' equity 2,774,374       1,127,486     Total liabilities and stockholders' equity$16,535,935      $10,811,264                 Net interest income  $114,381     $57,386  Interest rate spread    2.18%     1.67%Net interest-earning assets$4,284,351      $1,964,896     Net interest margin    2.96%     2.29%Ratio of interest-earning assets to interest-bearing liabilities 138.83%      124.64%                      COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Average Balances/Yields
  For the Nine Months Ended September 30,  2026   2025  Average Balance Interest and Dividends Yield / Cost Average Balance Interest and Dividends Yield / Cost (Dollars in thousands)Interest-earnings assets:           Loans$9,287,935  $358,128 5.16% $8,040,666  $298,548 4.96%Securities 2,076,233   57,427 3.70%  1,484,237   38,520 3.47%Other interest-earning assets 589,577   18,224 4.13%  297,563   12,003 5.39%Total interest-earning assets 11,953,745   433,779 4.85%  9,822,466   349,071 4.75%Non-interest-earning assets 1,005,767       867,884     Total assets$12,959,512      $10,690,350                 Interest-bearing liabilities:           Interest-bearing demand$2,348,436  $36,752 2.09% $1,967,414  $33,121 2.25%Money market accounts 1,513,531   26,539 2.34%  1,328,675   28,425 2.86%Savings and club deposits 830,303   4,049 0.65%  645,055   3,278 0.68%Certificates of deposit 3,122,982   87,945 3.77%  2,795,026   84,234 4.03%Total interest-bearing deposits 7,815,252   155,285 2.66%  6,736,170   149,058 2.96%FHLB advances 1,296,659   39,560 4.08%  1,164,942   38,174 4.38%Subordinated notes 15,419   834 7.23%  —   — —%Junior subordinated debentures 7,064   394 7.46%  7,043   425 8.07%Other borrowings 476   15 4.21%  —   — —%Total borrowings 1,319,618   40,803 4.13%  1,171,985   38,599 4.40%Total interest-bearing liabilities 9,134,870  $196,088 2.87%  7,908,155  $187,657 3.17%            Non-interest-bearing liabilities:           Non-interest-bearing deposits 1,849,140       1,455,365     Other non-interest-bearing liabilities 260,569       218,546     Total liabilities 11,244,579       9,582,066     Total stockholders' equity 1,714,933       1,108,284     Total liabilities and stockholders' equity$12,959,512      $10,690,350                 Net interest income  $237,691     $161,414  Interest rate spread    1.98%     1.58%Net interest-earning assets$2,818,875      $1,914,311     Net interest margin    2.66%     2.20%Ratio of interest-earning assets to interest-bearing liabilities 130.86%      124.21%                     COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Components of Net Interest Rate Spread and Margin  Average Yields/Costs by Quarter September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025Yield on interest-earning assets:         Loans5.37% 5.01% 5.01% 5.03% 5.04%Securities3.96  3.50  3.38  3.36  3.41 Other interest-earning assets3.87  4.33  4.78  4.69  5.24 Total interest-earning assets4.99% 4.74% 4.76% 4.77% 4.81%          Cost of interest-bearing liabilities:         Total interest-bearing deposits2.60% 2.68% 2.71% 2.79% 2.91%Total borrowings4.20  4.06  4.12  4.25  4.37 Total interest-bearing liabilities2.81% 2.90% 2.92% 3.01% 3.14%          Interest rate spread2.18% 1.84% 1.84% 1.76% 1.67%Net interest margin2.96% 2.44% 2.42% 2.36% 2.29%          Ratio of interest-earning assets to interest-bearing liabilities138.83% 126.11% 124.59% 124.84% 124.64% COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
Selected Financial Highlights  September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025SELECTED FINANCIAL RATIOS (1):         Return on average assets0.13% 0.52% 0.48% 0.57% 0.55%Core return on average assets (2)0.97% 0.54% 0.55% 0.57% 0.56%Return on average equity0.75% 4.92% 4.55% 5.43% 5.23%Core return on average equity (2)5.73% 5.14% 5.17% 5.50% 5.41%Core return on average tangible equity (2)6.20% 5.71% 5.75% 6.14% 6.04%Interest rate spread2.18% 1.84% 1.84% 1.76% 1.67%Net interest margin2.96% 2.44% 2.42% 2.36% 2.29%Non-interest (loss) income to average assets(0.33)% 0.39% 0.25% 0.31% 0.36%Non-interest expense to average assets2.34% 1.76% 1.75% 1.70% 1.65%Efficiency ratio97.05% 67.01% 70.73% 68.42% 67.04%Core efficiency ratio (2)53.16% 65.90% 68.02% 68.06% 66.04%Average interest-earning assets to average interest-bearing liabilities138.83% 126.11% 124.59% 124.84% 124.64%Net charge-offs/ (recoveries) to average outstanding loans0.05% 0.10% (0.03)% 0.03% 0.04%          (1) Ratios are annualized when appropriate.(2) See reconciliation of GAAP to non-GAAP financial measures. ASSET QUALITY DATA:  September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 (Dollars in thousands)Non-accrual loans (1)$36,476  $42,988  $41,375  $38,000  $32,529 90+ and still accruing —   —   —   —   — Non-performing loans 36,476   42,988   41,375   38,000   32,529 Real estate owned —   5,923   5,923   —   — Total non-performing assets$36,476  $48,911  $47,298  $38,000  $32,529           Non-performing loans to total gross loans 0.31%  0.51%  0.50%  0.46%  0.40%Non-performing assets to total assets 0.21%  0.40%  0.43%  0.34%  0.30%Allowance for credit losses on loans ("ACL")$118,594  $71,065  $68,761  $67,201  $65,659 ACL to total non-performing loans 325.13%  165.31%  166.19%  176.84%  201.85%ACL to gross loans 1.02%  0.84%  0.84%  0.82%  0.80%(1) Excludes loans held-for-sale at September 30, 2026. LOAN DATA:  September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 (In thousands)Real estate loans:     One-to-four family$2,627,567  $2,518,768  $2,543,588  $2,558,252  $2,583,162 Multifamily 3,704,346   1,768,395   1,669,232   1,677,613   1,612,105 Commercial real estate 3,247,917   2,573,823   2,472,993   2,513,260   2,532,329 Construction 553,805   502,609   520,753   469,438   465,283 Commercial business loans 1,005,519   831,030   752,246   766,792   771,486 Consumer loans:         Home equity loans and advances 443,303   248,141   249,487   255,126   256,970 Other consumer loans 3,970   2,851   2,850   2,895   2,725 Total gross loans 11,586,427   8,445,617   8,211,149   8,243,376   8,224,060 Purchased credit deteriorated loans 163,004   9,828   10,158   10,442   10,920 Net deferred loan costs, fees and purchased premiums and discounts 37,329   38,165   38,371   38,192   37,580 Allowance for credit losses (118,594)  (71,065)  (68,761)  (67,201)  (65,659)Loans receivable, net$11,668,166  $8,422,545  $8,190,917  $8,224,809  $8,206,901   At September 30, 2026 (Dollars in thousands) Balance % of Gross Loans Weighted Average Loan to Value Ratio (1) Weighted Average Debt Service Coverage (1)Multifamily Real Estate$3,704,346 32.0% 55.0% 1.56        Owner Occupied Commercial Real Estate$913,044 7.9% 67.4% 3.18        Investor Owned Commercial Real Estate:       Retail / Shopping centers$627,962 5.4% 52.5% 1.61Mixed Use 445,332 3.8  56.6  1.46Industrial / Warehouse 551,186 4.8  52.0  1.57Non-Medical Office 211,467 1.8  50.3  1.78Medical Office 104,653 0.9  56.7  1.43Single Purpose 58,592 0.5  63.9  1.36Other 335,681 2.9  48.6  1.89Total$2,334,873 20.2% 52.9% 1.61        Total Multifamily and Commercial Real Estate Loans$6,952,263 60.0% 55.9% 1.79        (1) Based on the most recent financial information available. As of September 30, 2026, the Company had approximately $77.0 million in office loans in New York City. As of October 27, 2026, the Company had approximately $164.6 million of rent stabilized multifamily loans in New York City. DEPOSIT DATA:  September 30, 2026 June 30, 2026 March 31, 2026 December 31, 2025 Balance Weighted
Average Rate Balance Weighted
Average Rate Balance Weighted
Average Rate Balance Weighted
Average Rate (Dollars in thousands)Non-interest-bearing demand$2,327,457 —% $1,555,833 —% $1,508,030 —% $1,517,399 —%Interest-bearing demand 3,402,812 2.07   2,844,989 1.37   1,882,987 1.86   1,985,871 1.99 Money market accounts 1,719,373 2.36   1,409,504 2.48   1,451,274 2.43   1,465,028 2.59 Savings and club deposits 1,391,044 0.93   636,566 0.42   625,001 0.42   623,444 0.47 Certificates of deposit 3,720,837 3.66   3,055,173 3.69   2,904,722 3.71   2,852,337 3.80 Total deposits$12,561,523 2.07% $9,502,065 1.99% $8,372,014 2.16% $8,444,079 2.23% CAPITAL RATIOS:    September 30, December 31, 2026 (1) 2025
Company:   Total capital (to risk-weighted assets)25.75% 14.92%Tier 1 capital (to risk-weighted assets)24.29% 14.03%Common equity tier 1 capital (to risk-weighted assets)24.24% 13.94%Tier 1 capital (to adjusted total assets)18.39% 10.27%    Columbia Bank:   Total capital (to risk-weighted assets)19.77% 14.09%Tier 1 capital (to risk-weighted assets)18.81% 13.20%Common equity tier 1 capital (to risk-weighted assets)18.81% 13.20%Tier 1 capital (to adjusted total assets)14.23% 9.67%    (1) Estimated ratios at September 30, 2026    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES    Book and Tangible Book Value per Share September 30, December 31,  2026   2025  (Dollars in thousands)Total stockholders' equity$3,165,284  $1,160,728 Less: goodwill (110,715)  (110,715)Less: core deposit intangible (78,763)  (6,946)Total tangible stockholders' equity$2,975,806  $1,043,067     Shares outstanding 269,547,660   103,984,649 Cash dividends paid per share$0.05  $— Book value per share$11.74  $11.16 Tangible book value per share$11.04  $10.03  RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)        Reconciliation of Core Net Income        Three Months Ended September 30, Nine Months Ended September 30,  2026   2025  2026   2025  (In thousands)Net income$5,231  $14,868 $32,817  $36,073 Add/less: loss (gain) on securities transactions, net of tax 29,003   —  29,003   (251)Add: loss on sale of loans , net of tax(1) 4,897   —  4,897   — Less: bargain purchase gain, net of tax (25,689)  —  (25,689)  — Add: severance expense, net of tax 1,091   503  1,091   1,020 Add: merger-related expenses, net of tax 25,942   —  28,371   — Add: loss on extinguishment of debt, net of tax 139   —  139   — Add: litigation expenses, net of tax —   —  —   242 Core net income$40,614  $15,371 $70,629  $37,084         (1) Loss on sale of loans includes only Northfield loan sales. Return on Average Assets        Three Months Ended September 30, Nine Months Ended September 30,  2026   2025   2026   2025  (Dollars in thousands)Net income$5,231  $14,868  $32,817  $36,073         Average assets$16,535,935  $10,811,264  $12,959,512  $10,690,350         Return on average assets 0.13%  0.55%  0.34%  0.45%        Core net income$40,614  $15,371  $70,629  $37,084         Core return on average assets 0.97%  0.56%  0.73%  0.46% RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)          Return on Average Equity        Three Months Ended September 30, Nine Months Ended September 30,  2026   2025   2026   2025  (Dollars in thousands)Total average stockholders' equity$2,774,374  $1,127,486  $1,714,933  $1,108,284 Add/less: loss (gain) on securities transactions, net of tax 29,003   —   29,003   (251)Add: loss on sale of loans, net of tax(1) 4,897   —   4,897   — Less: bargain purchase gain, net of tax (25,689)  —   (25,689)  — Add: severance expense, net of tax 1,091   503   1,091   1,020 Add: merger-related expenses, net of tax 25,942   —   28,371   — Add: loss on extinguishment of debt, net of tax 139   —   139   — Add: litigation expenses, net of tax —   —   —   242 Core average stockholders' equity$2,809,757  $1,127,989  $1,752,745  $1,109,295         Return on average equity 0.75%  5.23%  2.56%  4.35%        Core return on core average equity 5.73%  5.41%  5.39%  4.47%        (1) Loss on sale of loans includes only Northfield loan sales.         Return on Average Tangible Equity     Three Months Ended September 30, Nine Months Ended September 30,  2026   2025   2026   2025  (Dollars in thousands)Total average stockholders' equity$2,774,374  $1,127,486  $1,714,933  $1,108,284 Less: average goodwill (110,715)  (110,715)  (110,715)  (110,715)Less: average core deposit intangible (65,493)  (7,742)  (26,401)  (8,252)Total average tangible stockholders' equity$2,598,166  $1,009,029  $1,577,817  $989,317         Core return on average tangible equity 6.20%  6.04%  5.98%  5.01% RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued)          Efficiency Ratios        Three Months Ended September 30, Nine Months Ended September 30,  2026   2025   2026   2025  (Dollars in thousands)Net interest income$114,381  $57,386  $237,691  $161,414 Non-interest (loss) income (13,908)  9,867   3,669   28,511 Total income$100,473  $67,253  $241,360  $189,925         Non-interest expense$97,505  $45,086  $194,409  $133,837         Efficiency ratio 97.05%  67.04%  80.55%  70.47%        Non-interest (loss) income$(13,908) $9,867  $3,669  $28,511 Add/less: loss (gain) on securities transactions 40,849   —   40,849   (336)Add: loss on sale of loans (1) 6,897   —   6,897   — Less: bargain purchase gain, net of tax (25,689)  —   (25,689)  — Core non-interest income$8,149  $9,867  $25,726  $28,175         Non-interest expense$97,505  $45,086  $194,409  $133,837 Less: severance expense (1,536)  (670)  (1,536)  (1,365)Less: merger-related expenses (30,641)  —   (33,283)  — Less: loss on extinguishment of debt (196)  —   (196)  — Less: litigation expenses —   —   —   (325)Core non-interest expense$65,132  $44,416  $159,394  $132,147         Core efficiency ratio 53.16%  66.04%  60.51%  69.70%        (1) Loss on sale of loans includes only Northfield loan sales. 
ACQUISITION DATE-FAIR VALUE BALANCE SHEET

The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Northfield, net of the total consideration paid:

 At July 20, 2026 (In thousands)  Amount  Estimated Fair ValueTotal Purchase Price    $578,823 Acquired Equity $681,816    Fair Value Marks:     Debt securities held to maturity  (425)   Loans receivable, yield  (150,538)   Loans receivable, credit  (86,590)   Allowance for credit losses  39,441    Core deposit intangibles  76,167    Office land and buildings  12,973    Leases  (550)   Certificates of deposit  2,364    Borrowings  2,613    Subordinated debentures  1,860    Post-Retirement benefits (BOLI)  (293)   Taxes  25,674          Less: Fair value of net assets    $604,512 Bargain purchase gain, net of tax    $(25,689)      The calculation of the bargain purchase gain is subject to change for up to one year after the date of acquisition as additional information relative to the closing date estimates and uncertainties become available. As the Company finalizes its review of the acquired assets and liabilities, certain adjustments to the recorded carrying values may be required.       Columbia Financial, Inc.
Investor Relations Department
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InterDigital, Inc. (IDCC) Q3 2026 Earnings Call October 29, 2026 10:00 AM EDT

Company Participants

Raiford Garrabrant - Head of Investor Relations
Lawrence Chen - President, CEO & Director
Richard J. Brezski - Executive VP, CFO & Treasurer

Conference Call Participants

Kevin Garrigan - Jefferies LLC, Research Division
Arjun Bhatia - William Blair & Company L.L.C., Research Division
Scott Searle - ROTH Capital Partners, LLC, Research Division
Anja Soderstrom - Sidoti & Company, LLC

Presentation

Operator

Ladies and gentlemen, thank you for standing by. My name is Abby, and I will be your conference operator today. At this time, I would like to welcome everyone to the InterDigital Third Quarter 2026 Earnings Conference Call. [Operator Instructions] Thank you. And I would now like to turn the conference over to Raiford Garrabrant, Vice President of Investor Relations. Please go ahead.

Raiford Garrabrant
Head of Investor Relations

Thank you, Abby, and good morning, everyone. Welcome to InterDigital's Third Quarter 2026 Earnings Conference Call. I'm Raiford Garrabrant, VP of Investor Relations for InterDigital. With me on today's call are Liren Chen, our President and CEO; and Rich Brezski, our CFO.

Consistent with prior calls, we will offer some highlights about the quarter and the company and then open the call up for questions. For additional details, you can access our earnings release and slide presentation that accompany this call on our Investor Relations website.

Before we begin our remarks, I need to remind you that in this call, we will make forward-looking statements regarding our current beliefs, plans, and expectations, which are not guarantees of future performance and are made only as of the date hereof. Forward-looking statements are subject to risks and uncertainties that could cause actual results and events to differ materially from results and events contemplated by such forward-looking statements. These risks and uncertainties include those described in the Risk

Cactus, Inc. (WHD) Q3 2026 Earnings Call October 29, 2026 10:00 AM EDT

Company Participants

Alan Boyd - Director of Corporate Development & Investor Relations
Scott Bender - CEO & Chairman of the Board
Jay Nutt - CFO, Principal Accounting Officer, Executive VP & Treasurer
Stephen Tadlock - Executive VP & CEO of Cactus International

Conference Call Participants

Arun Jayaram - JPMorgan Chase & Co, Research Division
Derek Podhaizer - Piper Sandler & Co., Research Division
Stephen Gengaro - Stifel, Nicolaus & Company, Incorporated, Research Division

Presentation

Operator

Good day, and thank you for standing by. Welcome to Cactus Q3 2026 Earnings Call. [Operator Instructions] Please be advised that today's conference call is being recorded.

I would now like to hand the conference over to your first speaker today, Alan Boyd, Treasurer and Director of Corporate Development and Investor Relations. Please go ahead.

Alan Boyd
Director of Corporate Development & Investor Relations

Thank you, and good morning. We appreciate you joining us on today's call. Our speakers will be Scott Bender, our Chairman and Chief Executive Officer; and Jay Nutt, our Chief Financial Officer. Also joining us today are Joel Bender, President; Steven Bender, Chief Operating Officer and CEO of Spoolable Technologies; Stephen Tadlock, CEO of Cactus International; and William Marsh, our General Counsel.

Please note that any comments we make on today's call regarding projections or expectations for future events are forward-looking statements covered by the Private Securities Litigation Reform Act. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC. Any forward-looking statements we make today are only as of today's date, and we undertake

Key Takeaways Okta shares have soared 157.5% YTD, driven by strong enterprise demand for identity security and AI solutions.Newer products deliver about 40% ACV uplift, while large enterprise customers grew more than 20% in fiscal Q2.OKTA faces stiff competition and slowing growth, with fiscal 2027 revenues projected to rise 10-11%. Okta (OKTA - Free Report) shares have jumped 157.5% year to date (YTD), outperforming the broader Zacks Computer & Technology sector’s return of 17.4%. The company is benefiting from growing demand for identity security, artificial intelligence (AI) agent governance, enterprise modernization and expanding adoption of its newer products. However, intense competition, uncertainty surrounding AI adoption, slowing customer growth and near-term revenue headwinds remain concerns. What should investors do with OKTA stock? Let’s find out.

Okta Rides on Strong Enterprise Demand & New ProductsOkta is well-positioned to benefit from increasing enterprise investments in identity security as organizations accelerate AI adoption and modernize their cybersecurity infrastructure. The proliferation of autonomous AI agents across applications, cloud platforms and enterprise systems is creating demand for identity discovery, authentication, access controls and governance. Okta for AI Agents enables enterprises to discover, secure and govern AI agents while enforcing access policies across heterogeneous environments. Growing adoption of agentic AI is expected to expand the company’s addressable market and create additional cross-selling opportunities across its identity security portfolio.

Okta’s newer offerings, including Okta Identity Governance, Okta Privileged Access, Identity Security Posture Management, Identity Threat Protection and Okta for AI Agents, are helping customers address increasingly complex security requirements. Deals involving newer products generated an average annual contract value (ACV) uplift of approximately 40%, highlighting significant cross-selling and upselling opportunities. Increasing adoption of these solutions is likely to strengthen Okta’s competitive positioning, deepen customer relationships and support subscription revenue growth.

Okta is benefiting from solid demand among large enterprises, improving sales productivity and strong customer expansion activity. During the second quarter of fiscal 2027, the number of customers generating more than $1 million in ACV increased more than 20%, bringing the total to more than 600. Strong pipeline conversion and deal expansions contributed to record bookings for a quarter outside the fiscal fourth quarter. The company is strengthening collaborations with Anthropic, Amazon Web Services, Cisco, OpenAI, Databricks and Snowflake to expand identity controls across AI applications and enterprise systems.

Intense Competition & Moderating Revenue Growth Hurts OKTAOKTA is facing stiff competition from the likes of Microsoft (MSFT - Free Report) , CrowdStrike (CRWD - Free Report) and Cisco Systems (CSCO - Free Report) . YTD, CrowdStrike, Cisco and Microsoft have returned 114.6%, 42.2% and 9.4%, respectively.

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

Per OKTA management estimates, Microsoft’s workforce access management market share is at approximately 40% compared with Okta’s 30%. Competition is also intensifying as cybersecurity vendors, enterprise software providers and AI infrastructure companies expand into identity governance and AI agent security.

Okta continues to face challenges in accelerating overall revenue growth despite improving bookings and subscription demand. For the third quarter of fiscal 2027, the company expects revenues of $813-$817 million, indicating approximately 10% year-over-year growth. Current Remaining Performance Obligation growth is projected at 11-12%, below the 14% growth recorded in the second quarter. Okta expects fiscal 2027 revenue growth of 10-11%, including an approximately one-percentage-point headwind from shifting more professional services business to global system integrator partners.

OKTA’s Earnings Estimate Revision Reflects Steady TrendThe Zacks Consensus Estimate for Okta’s fiscal 2027 earnings has remained steady at $3.93 per share over the past 30 days. The earnings estimate suggests 12.3% growth over the figure reported in fiscal 2026. The consensus estimate for revenues is currently pegged at $3.22 billion, suggesting 10.4% growth from the figure reported in fiscal 2026.
 

The Zacks Consensus Estimate for Okta’s third-quarter fiscal 2027 earnings has been steady at 93 cents per share over the past 30 days. The earnings estimate suggests 13.41% growth over the figure reported in the year-ago quarter. The consensus estimate for revenues is currently pegged at $815.5 million, suggesting 9.9% growth from the figure reported in the year-ago quarter.

Here’s Why OKTA is a HoldOKTA shares are trading at a premium, as suggested by the Value Score of F.

In terms of forward 12-month price/sales (P/S), Okta is trading at 11.23X, higher than the median of 5.08X, the broader sector’s 5.60X, Cisco’s 5.94X and Microsoft’s 9.52X. However, OKTA is cheaper than CrowdStrike, shares of which are trading at 38.93X.

OKTA Stock’s Valuation
Image Source: Zacks Investment Research

Okta’s near-term prospects are supported by resilient subscription demand, growing adoption of identity governance solutions, expanding enterprise relationships and early momentum in AI agent security. Its independent platform architecture, improving sales execution and robust cash generation provide additional strengths. Nevertheless, competitive pressure from Microsoft and other platform vendors, AI monetization uncertainty and moderating revenue growth remain significant concerns. The company’s ability to translate its early AI security leadership into sustained subscription growth while maintaining profitability will be critical to its long-term performance.

Okta currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable point before accumulating stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

, /PRNewswire/ -- The Board of Directors of Cohen & Steers, Inc. (NYSE: CNS) declared a cash dividend for the fourth quarter of 2026 in the amount of $0.67 per share of common stock payable on November 19, 2026 to stockholders of record as of the close of business on November 9, 2026.

About Cohen & Steers. Cohen & Steers is a leading global investment manager specializing in real assets and alternative income, including listed and private real estate, preferred securities, infrastructure, resource equities, commodities, as well as multi-strategy solutions. Founded in 1986, the firm is headquartered in New York City, with offices in London, Dublin, Hong Kong, Tokyo and Singapore.

SOURCE Cohen & Steers, Inc.

O'Reilly Automotive, Inc. (ORLY) Q3 2026 Earnings Call October 29, 2026 11:00 AM EDT

Company Participants

Jeremy Fletcher - Executive VP & CFO
Brad Beckham - Chief Executive Officer
Brent Kirby - President

Conference Call Participants

Scot Ciccarelli - Truist Securities, Inc., Research Division
David Bellinger - Mizuho Securities USA LLC, Research Division
Simeon Gutman - Morgan Stanley, Research Division
Katharine McShane - Goldman Sachs Group, Inc., Research Division
Michael Lasser - UBS Investment Bank, Research Division
Steven Forbes - Guggenheim Securities, LLC, Research Division

Presentation

Operator

Welcome to the O'Reilly Automotive, Inc. Third Quarter 2026 Earnings Call. My name is Tom, and I will be your operator for today's call. [Operator Instructions]

I will now turn the call over to Jeremy Fletcher. Mr. Fletcher, you may begin.

Jeremy Fletcher
Executive VP & CFO

Thank you, Tom. Good morning, everyone, and thank you for joining us. During today's conference call, we will discuss our third quarter 2026 results and our updated outlook for the remainder of 2026. After our prepared comments, we will host a question-and-answer period.

Before we begin this morning, I would like to remind everyone that our comments today contain certain forward-looking statements, and we intend to be covered by, and we claim the protection under the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as estimate, may, could, will, believe, expect, would, consider, should, anticipate, project, plan, intend or similar words.

The company's actual results could differ materially from any forward-looking statements due to several important factors described in the company's latest annual report on Form 10-K for the year ended December 31, 2025, and other recent SEC filings. The company assumes no obligation to update any forward-looking statements made during this call.

At

Chip designer Marvell Technology and optical components maker Lumentum could be moving toward a merger.

SAN DIEGO--(BUSINESS WIRE)--Dexcom Reports Third Quarter 2026 Financial Results.

Southfield, Michigan, Oct. 29, 2026 (GLOBE NEWSWIRE) -- Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced a consolidated net loss of $56.6 million, or $5.43 per diluted share, for the three months ended September 30, 2026, compared to consolidated net income of $108.2 million, or $9.43 per diluted share, for the same period in 2025. Adjusted net income, a non-GAAP financial measure, for the three months ended September 30, 2026 was $135.5 million, or $13.01 per diluted share, compared to $117.9 million, or $10.28 per diluted share, for the same period in 2025.

Third Quarter 2026 Additional Financial Highlights

Economic profit, a non-GAAP financial measure, was $50.7 million, or $4.87 per diluted share, compared to $43.0 million, or $3.75 per diluted share, in the third quarter of 2025.Consumer Loan assignment volume reached 110,010 units and $1.4 billion, up 37.7% and 51.0%, respectively, compared to the third quarter of 2025, while unit volume per active dealer increased by 15.2% compared to the third quarter of 2025.Forecasted net cash flows from our loan portfolio declined 2.5% ($291.2 million), compared to a decline of 0.5% ($58.6 million) in the third quarter of 2025, primarily reflecting the impact of an adjustment to our methodology for forecasting the amount of future net cash flows.Average balance of our loan portfolio increased to $8.1 billion, up 1.1% compared with the third quarter of 2025.Share repurchases totaled 269,150 shares (2.6% of the shares outstanding at the beginning of the quarter) for an aggregate cost of $161.6 million.Total liquidity stood at $1.2 billion as of September 30, 2026. Additionally, we completed a $600.0 million asset-backed financing, matching the largest asset-backed financing in our history and achieved our lowest credit spreads since late 2021. “During the third quarter, Consumer Loan unit and dollar volume grew 38% and 51%, respectively, both economic profit and adjusted net income experienced double-digit growth, and the number of active dealers reached an all-time high,” said Vinayak Hegde, Chief Executive Officer. “One of the most encouraging aspects of this growth is that rather than relying on a single lever, our momentum is driven by our four-pronged strategy of customer obsession, segmentation, leveraging data and AI, and disciplined operating rhythms and practices. We believe execution of this strategy strengthens our forecasting, pricing, and operating processes and positions the Company to make more informed capital-allocation decisions.”

Third Quarter 2026 Company Highlights

Enrolled 1,350 new dealers in our programs and had a record 12,093 active dealers during the quarter, reflecting continued engagement across our dealer network.$37.3 million in dealer holdback paid to dealers.Made continued progress executing our product roadmap, including the following initiatives, which contributed to increased volume growth: Scorecard update: Launched a new scorecard that uses refreshed and additional data attributes to enhance our risk-assessment capabilities by credit profile, dealer, vehicle, and deal structure.Segmentation: Reorganized our sales force to improve alignment by dealer type, origination channel, and geography, with targeted teams for independent dealers, franchise dealers, and national dealer groups.Reduced friction for dealers: Continued integration improvement with the aggregator platforms and enhanced the deal optimization tool, which reduced friction for dealers who use Dealertrack, RouteOne, and DealerCenter, and resulted in higher volume with franchise and large independent dealers. Settled claims related to a longstanding multi-state investigation and the New York state attorney general lawsuit without any admission of fault or wrongdoing by the Company and on terms not requiring the Company to record additional charges beyond amounts previously accrued and disclosed.Named one of PEOPLE magazine’s 100 Companies That Care® by Great Place to Work® and PEOPLE magazine, for the fifth consecutive year, with a #11 ranking. Consumer Loan Metrics

Dealers assign retail installment contracts (referred to as “Consumer Loans”) to Credit Acceptance. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related dealer at a price designed to maximize economic profit, a non-GAAP financial measure that considers our return on capital, our cost of capital, and the amount of capital invested. 

We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast. The following table compares our aggregated forecast of Consumer Loan collection rates as of September 30, 2026, with the aggregated forecasts as of June 30, 2026 and at the time of assignment, segmented by year of assignment:

  Forecasted Collection Rate as of (1) Current Forecast Variance from Consumer Loan Assignment Year September 30, 2026 June 30, 2026 Initial
Forecast June 30, 2026 Initial
Forecast2017         64.8 %         64.8 %         64.0 %         0.0 %         0.8 %2018         65.6 %         65.6 %         63.6 %         0.0 %         2.0 %2019         67.3 %         67.3 %         64.0 %         0.0 %         3.3 %2020         68.1 %         68.1 %         63.4 %         0.0 %         4.7 %2021         64.2 %         64.1 %         66.3 %         0.1 %         -2.1 %2022         59.2 %         59.3 %         67.5 %         -0.1 %         -8.3 %2023         62.4 %         62.9 %         67.5 %         -0.5 %         -5.1 %2024         63.6 %         65.1 %         67.2 %         -1.5 %         -3.6 %2025         64.9 %         66.9 %         67.0 %         -2.0 %         -2.1 %     2026 (2)         65.3 %         67.1 %         67.1 %         -1.8 %         -1.8 % (1)   Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment, including both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans because the contractual amount owed is not removed from the denominator used to calculate these rates.
(2)   The forecasted collection rate for 2026 Consumer Loans as of September 30, 2026 includes both Consumer Loans that were in our portfolio as of June 30, 2026 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates for each of these segments:

  Forecasted Collection Rate as of Current Forecast Variance from2026 Consumer Loan Assignment Period September 30, 2026 June 30, 2026 Initial
Forecast June 30, 2026 Initial
ForecastJanuary 1, 2026 through June 30, 2026         64.7 %         67.1 %         67.2 %         -2.4 %         -2.5 %July 1, 2026 through September 30, 2026         66.1 %         —           67.0 %         —           -0.9 % For the three months ended September 30, 2026, forecasted collection rates declined for Consumer Loans assigned in 2023 through 2026 and were generally consistent with expectations at the start of the period for all other assignment years presented.

The changes to our forecast of future net cash flows from our loan portfolio (forecasted collections less forecasted dealer holdback payments) for each of the last eight quarters are shown in the following table:

(Dollars in millions) Decrease in Forecasted Net Cash FlowsThree Months Ended Total Loans % Change from Forecast at Beginning of PeriodDecember 31, 2024 $        (31.1)          -0.3 %March 31, 2025          (20.9)          -0.2 %June 30, 2025          (55.8)          -0.5 %September 30, 2025          (58.6)          -0.5 %December 31, 2025          (34.2)          -0.3 %March 31, 2026          (9.1)          -0.1 %June 30, 2026          (39.1)          -0.3 %September 30, 2026          (291.2)          -2.5 % During the third quarter of 2026, based on our analysis of historical Consumer Loan performance data and market trends, we adjusted our methodology for forecasting future net cash flows from our loan portfolio. The adjustment reduced forecasted collection rates for Consumer Loans assigned to us in 2022 through 2026 to the levels we now expect for the life of these Consumer Loans. Prior to our making the adjustment in the third quarter of 2026, we had observed small but consistent quarterly underperformance of these Consumer Loans relative to forecasted cash flows and had made corresponding adjustments to our forecast each quarter. The underperformance of the Consumer Loans assigned to us in 2022 through 2026 had been most pronounced in the case of Consumer Loans in lower scorecard bands. Most of the impact of the forecast adjustment we made in the third quarter of 2026 is related to Consumer Loans assigned to us before the scorecard change we introduced in the second quarter of 2026.

The following table presents information on Consumer Loan assignments for each of the last 10 years:

   Average Total Assignment Volume Consumer Loan
Assignment Year Consumer Loan (1) Advance (2) Initial Loan Term (in months) Unit Volume Dollar Volume (2)
(in millions)2017 $        20,230 $        8,746 55 328,507 $        2,873.12018  22,158  9,635 57 373,329  3,595.82019  23,139  10,174 57 369,805  3,772.22020  24,262  10,656 59 341,967  3,641.22021  25,632  11,790 59 268,730  3,167.82022  27,242  12,924 60 280,467  3,625.32023  27,025  12,475 61 332,499  4,147.82024  26,497  11,961 61 386,126  4,618.42025  25,423  11,428 60 337,411  3,856.1     2026 (3) (4)  26,077  11,916 60 290,617  3,463.0 (1)   Represents the repayments that we were contractually owed on Consumer Loans at the time of assignment, which include both principal and interest.
(2)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program. Payments of dealer holdback are not included.
(3)   Represents activity for the nine months ended September 30, 2026. Information in this table for each of the years prior to 2026 represents activity for all 12 months of that year.
(4)   The averages for 2026 Consumer Loans include both Consumer Loans that were in our portfolio as of June 30, 2026 and Consumer Loans assigned during the most recent quarter. The following table provides averages for each of these segments:

  Average2026 Consumer Loan Assignment Period Consumer Loan Advance Initial Loan Term (in months)January 1, 2026 through June 30, 2026 $        25,355 $        11,449         60July 1, 2026 through September 30, 2026          27,261          12,682         61 The profitability of our loans is primarily driven by the amount and timing of the net cash flows we receive from the spread between the forecasted collection rate and the advance rate, less operating expenses and the cost of capital. Forecasting collection rates accurately at loan inception is difficult. With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability across our portfolio, even if collection rates are less than we initially forecast.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, spreads (the forecasted collection rate less the advance rate), and forecasted future net cash flows as of September 30, 2026, as well as forecasted collection rates and spreads at the time of assignment. All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). The table includes both dealer loans and purchased loans.

  Forecasted Collection %   Spread % as of Forecasted Future Net Cash Flows (1) Consumer Loan Assignment Year September 30, 2026 Initial Forecast Advance % September 30, 2026 Initial Forecast September 30, 2026
(in millions) % of Total2017         64.8 %         64.0 %         43.2 %         21.6 %         20.8 % $        17.2          0.1 %2018         65.6 %         63.6 %         43.5 %         22.1 %         20.1 %          39.9          0.3 %2019         67.3 %         64.0 %         44.0 %         23.3 %         20.0 %          74.6          0.6 %2020         68.1 %         63.4 %         43.9 %         24.2 %         19.5 %          129.6          1.1 %2021         64.2 %         66.3 %         46.0 %         18.2 %         20.3 %          274.1          2.3 %2022         59.2 %         67.5 %         47.4 %         11.8 %         20.1 %          642.3          5.3 %2023         62.4 %         67.5 %         46.2 %         16.2 %         21.3 %          1,177.7          9.8 %2024         63.6 %         67.2 %         45.1 %         18.5 %         22.1 %          2,193.2          18.2 %2025         64.9 %         67.0 %         45.0 %         19.9 %         22.0 %          3,737.4          31.0 %2026 (2) (3)         65.3 %         67.1 %         45.8 %         19.5 %         21.3 %          3,784.6          31.3 %Total $        12,070.6          100.0 % (1)   Represents the forecasted future collections we expect to collect on Consumer Loans less the forecasted future dealer holdback payments we expect to make to dealers.
(2)   Represents activity for the nine months ended September 30, 2026. Information in this table for each of the years prior to 2026 represents activity for all 12 months of that year.
(3)   The forecasted collection rate, advance rate and spread for 2026 Consumer Loans as of September 30, 2026 include both Consumer Loans that were in our portfolio as of June 30, 2026 and Consumer Loans assigned during the most recent quarter. The following table provides forecasted collection rates, advance rates, and spreads for each of these segments:

  Forecasted Collection % as of   Spread % as of2026 Consumer Loan Assignment Period September 30, 2026 Initial Forecast Advance % September 30, 2026 Initial ForecastJanuary 1, 2026 through June 30, 2026         64.7 %         67.2 %         45.2 %         19.5 %         22.0 %July 1, 2026 through September 30, 2026         66.1 %         67.0 %         46.6 %         19.5 %         20.4 % The risk of a material change in our forecasted collection rate declines as the Consumer Loans age. Because Consumer Loans assigned in 2022 and prior years represent less than 10% of total forecasted future net cash flows from Consumer Loans, changes in the forecasted collection rate for those loans would generally be expected to have a relatively modest impact on total forecasted future net cash flows. In contrast, Consumer Loans assigned since 2022 represent a larger portion of expected future net cash flows, and a significant portion of their total forecasted collections has not yet been realized. Accordingly, changes in the forecasted collection rate for those more recent loans would generally be expected to have a more significant impact on total forecasted future net cash flows.

The spread as of September 30, 2026 ranges from 11.8% to 24.2%, on an annual basis, for Consumer Loans assigned over the last 10 years. The spreads with respect to 2019 and 2020 Consumer Loans have been positively impacted by Consumer Loan performance, which has exceeded our initial estimates by a greater margin than the other years presented. The spreads with respect to Consumer Loans assigned to us in 2021 through 2026 have been negatively impacted by Consumer Loan performance, which has been lower than our initial estimates by a greater margin than the other years presented. The lower spread for 2026 Consumer Loans relative to 2025 Consumer Loans as of September 30, 2026 reflects the net impact of two offsetting factors. A lower initial spread on 2026 Consumer Loans, primarily due to a higher advance rate, decreased the spread from 2025 to 2026. The impact of the lower initial spread was partially offset by Consumer Loan performance, as the performance of 2025 Consumer Loans has been lower than our initial estimates by a greater margin than 2026 Consumer Loans.

The following table compares our forecast of aggregate Consumer Loan collection rates as of September 30, 2026 with the forecasts at the time of assignment, for dealer loans and purchased loans separately:

  Dealer Loans Purchased Loans  Forecasted Collection Rate as of (1)   Forecasted Collection Rate as of (1)   Consumer Loan Assignment Year September 30,
2026 Initial
Forecast Variance September 30,
2026 Initial
Forecast Variance2017         64.1 %         63.8 %         0.3 %         66.4 %         64.6 %         1.8 %2018         65.0 %         63.6 %         1.4 %         66.8 %         63.5 %         3.3 %2019         66.9 %         63.9 %         3.0 %         67.9 %         64.2 %         3.7 %2020         67.9 %         63.3 %         4.6 %         68.4 %         63.6 %         4.8 %2021         63.9 %         66.3 %         -2.4 %         64.7 %         66.3 %         -1.6 %2022         58.4 %         67.3 %         -8.9 %         61.2 %         68.0 %         -6.8 %2023         61.1 %         66.8 %         -5.7 %         65.9 %         69.4 %         -3.5 %2024         62.4 %         66.3 %         -3.9 %         68.3 %         70.7 %         -2.4 %2025         63.1 %         65.5 %         -2.4 %         70.0 %         71.5 %         -1.5 %2026         63.8 %         65.8 %         -2.0 %         68.6 %         70.2 %         -1.6 % (1)   The forecasted collection rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment. Forecasted collection rates are negatively impacted by canceled Consumer Loans because the contractual amount owed is not removed from the denominator used to calculate these rates.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate) as of September 30, 2026 for dealer loans and purchased loans separately.  All amounts are presented as a percentage of the initial balance of the Consumer Loan (principal + interest).

  Dealer Loans Purchased Loans Consumer Loan Assignment Year Forecasted Collection % (1) Advance % (1) Spread % Forecasted Collection % (1) Advance % (1) Spread %2017         64.1 %         42.1 %         22.0 %         66.4 %         45.8 %         20.6 %2018         65.0 %         42.7 %         22.3 %         66.8 %         45.2 %         21.6 %2019         66.9 %         43.1 %         23.8 %         67.9 %         45.6 %         22.3 %2020         67.9 %         43.0 %         24.9 %         68.4 %         45.5 %         22.9 %2021         63.9 %         45.1 %         18.8 %         64.7 %         47.7 %         17.0 %2022         58.4 %         46.4 %         12.0 %         61.2 %         50.1 %         11.1 %2023         61.1 %         44.8 %         16.3 %         65.9 %         49.8 %         16.1 %2024         62.4 %         44.1 %         18.3 %         68.3 %         48.9 %         19.4 %2025         63.1 %         43.2 %         19.9 %         70.0 %         50.4 %         19.6 %2026         63.8 %         43.8 %         20.0 %         68.6 %         50.3 %         18.3 % (1)   The forecasted collection rates and advance rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment.

Although the advance rate on purchased loans is higher as compared to the advance rate on dealer loans, purchased loans do not require us to pay dealer holdback.

The spread as of September 30, 2026 on 2026 dealer loans was 20.0%, as compared to a spread of 19.9% on 2025 dealer loans, reflecting the net impact of two offsetting factors. Consumer Loan performance increased the spread from 2025 to 2026, as the performance of 2025 dealer loans has been lower than our initial estimates by a greater margin than 2026 dealer loans. The impact of Consumer Loan performance was partially offset by a lower initial spread on 2026 dealer loans, due to the advance rate increasing by a greater margin than the initial forecast in our dealer loan portfolio.

The spread as of September 30, 2026 on 2026 purchased loans was 18.3%, as compared to a spread of 19.6% on 2025 purchased loans. The decrease was primarily a result of a lower initial spread on 2026 purchased loans, primarily due to a lower initial forecast in our purchased loan portfolio.

Consumer Loan Volume

The following table summarizes changes in Consumer Loan assignment volume in each of the last eight quarters as compared to the same period in the previous year:

  Year over Year Percent ChangeThree Months Ended Unit Volume Dollar VolumeDecember 31, 2024         0.3 %         -4.9 %March 31, 2025         -10.1 %         -15.5 %June 30, 2025         -14.6 %         -18.8 %September 30, 2025         -16.5 %         -19.4 %December 31, 2025         -9.1 %         -11.3 %March 31, 2026         -4.3 %         -4.0 %June 30, 2026         -1.0 %         0.1 %September 30, 2026         37.7 %         51.0 % Consumer Loan assignment volumes depend on a number of factors including (1) the overall demand for our financing programs and (2) the amount of capital available to fund new loans. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital constraints.

Unit volume increased 37.7% while dollar volume increased 51.0% during the third quarter of 2026 as the number of active dealers increased 18.8% and the average unit volume per active dealer increased 15.2%. Dollar volume increased by more than unit volume during the third quarter of 2026 due to an increase in the average advance paid. The increase in the average advance paid was primarily the result of an increase in the average size of the Consumer Loans assigned.

The following table summarizes the changes in Consumer Loan unit volume and active dealers:

 For the Three Months Ended September 30,   2026 2025 % ChangeConsumer Loan unit volume        110,010         79,916         37.7 %Active dealers (1)        12,093         10,180         18.8 %Average volume per active dealer        9.1         7.9         15.2 %      Consumer Loan unit volume from dealers active both periods        85,087         68,719         23.8 %Dealers active both periods        7,121         7,121         —  Average volume per dealer active both periods        11.9         9.7         23.8 % (1)   Active dealers are dealers who have received funding for at least one Consumer Loan during the period.

The following table provides additional information on the changes in Consumer Loan unit volume and active dealers:

 For the Three Months Ended September 30,   2026  2025  % ChangeConsumer Loan unit volume from new active dealers        5,173           2,924           76.9 %New active dealers (1)        1,313           1,012           29.7 %Average volume per new active dealer        3.9           2.9           34.5 %      Attrition (2)        -14.0 %         -18.9 %   (1)   New active dealers are dealers who enrolled in our program and have received funding for their first dealer loan or purchased loan from us during the period.
(2)   Attrition is measured according to the following formula: decrease in Consumer Loan unit volume from dealers who have received funding for at least one dealer loan or purchased loan during the comparable period of the prior year but did not receive funding for any dealer loans or purchased loans during the current period divided by prior year comparable period Consumer Loan unit volume.

The following table shows the percentage of Consumer Loans assigned to us as dealer loans and purchased loans for each of the last eight quarters:

  Unit Volume Dollar VolumeThree Months Ended Dealer Loans Purchased Loans Dealer Loans Purchased LoansDecember 31, 2024         78.7 %         21.3 %         77.7 %         22.3 %March 31, 2025         77.0 %         23.0 %         75.1 %         24.9 %June 30, 2025         71.6 %         28.4 %         68.3 %         31.7 %September 30, 2025         73.1 %         26.9 %         70.6 %         29.4 %December 31, 2025         74.7 %         25.3 %         72.4 %         27.6 %March 31, 2026         72.0 %         28.0 %         69.2 %         30.8 %June 30, 2026         68.5 %         31.5 %         65.2 %         34.8 %September 30, 2026         67.2 %         32.8 %         64.3 %         35.7 % As of September 30, 2026 and December 31, 2025, the net dealer loans receivable balance was 70.0% and 72.1%, respectively, of the total net loans receivable balance.

Financial Results

(Dollars in millions, except per share data)For the Three Months Ended September 30,    2026   2025 % ChangeGAAP average debt$        6,446.9   $        6,400.1          0.7 %GAAP average shareholders' equity         1,552.2            1,573.4          -1.3 %Average capital$        7,999.1   $        7,973.5          0.3 %GAAP net income (loss)$        (56.6)  $        108.2  *Diluted weighted average shares outstanding 10,416,624    11,472,729          -9.2 %GAAP net income (loss) per diluted share$        (5.43)  $        9.43  * *Not meaningful.

The decrease in GAAP net income for the three months ended September 30, 2026, as compared to the same period in 2025, was primarily a result of the following:

An increase in provision for credit losses of 170.3% ($258.9 million), due to: An increase in provision for credit losses on forecast changes of $193.8 million, reflecting a decline in Consumer Loan performance and changes in forecasted net cash flow timing, primarily due to a downward forecasting adjustment applied to our forecasting methodology during the third quarter of 2026.An increase in provision for credit losses on new Consumer Loan assignments of $65.1 million, due to a 46.7% increase in the average provision per Consumer Loan assignment and a 37.7% increase in Consumer Loan assignment unit volume. The increase in the average provision per Consumer Loan assignment was primarily due to a higher average provision for purchased loans, driven by a lower initial forecast and spread, and a greater proportion of purchased loans in the mix of Consumer Loan assignments received during the third quarter of 2026. A decrease in interest expense of 7.8% ($9.1 million), from $116.3 million to $107.2 million, primarily due to a decrease in our average cost of debt.An increase in finance charges of 2.1% ($11.5 million), due to increases in the average yield on our loan portfolio, primarily due to higher contractual yields on more recent Consumer Loan assignments, and in the average balance of our loan portfolio.A decrease in operating expenses of 9.7% ($14.2 million), primarily due to: A decrease in salaries and wages expense of 11.5% ($9.8 million), primarily due to (i) a reduction in headcount, (ii) a decrease in fringe benefits, primarily due to lower medical claims and a lower number of team members participating in the plan, and (iii) a decrease in stock-based compensation expense, primarily due to the retirements of senior leaders in 2026. These decreases were partially offset by an increase in severance expense in the third quarter of 2026.A decrease in general and administrative expense of 24.8% ($9.0 million), primarily due to the recognition of a $15.0 million contingent loss during the three months ended September 30, 2025 related to previously disclosed legal matters. The decrease was partially offset by higher professional services costs related to strategic market analysis initiatives.An increase in sales and marketing expense of 18.5% ($4.6 million), primarily due to an increase in sales commissions related to growth in Consumer Loan assignment volume. A decrease in provision for income taxes of 141.5% ($57.6 million), primarily due to a decrease in pre-tax income. Adjusted financial results are provided to help shareholders understand our financial performance. The financial data below is non-GAAP, unless labeled otherwise. We use adjusted financial information internally to measure financial performance and to determine certain incentive compensation. We also use economic profit as a framework to evaluate business decisions and strategies, with the objective to maximize economic profit over the long term. In addition, certain debt facilities utilize adjusted financial information for the determination of loan collateral values and to measure financial covenants. The table below shows our results following adjustments to reflect non-GAAP accounting methods. Material adjustments are explained in the subsequent “Supplemental Information” and “Floating Yield Adjustment” sections. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP.

Adjusted financial results for the three months ended September 30, 2026, compared to the same period in 2025, include the following:

(Dollars in millions, except per share data)For the Three Months Ended September 30,    2026   2025  % ChangeAdjusted average capital$        8,747.3   $        8,699.2           0.6  %Adjusted net income$        135.5   $        117.9           14.9 %Interest expense (after-tax)$        80.4   $        87.3           -7.9 %Adjusted net income plus interest expense (after-tax)$        215.9   $        205.2           5.2 %Adjusted return on capital         9.9 %          9.4 %         5.3 %Cost of capital         7.6 %          7.5 %         1.3 %Economic profit$        50.7   $        43.0           17.9 %Diluted weighted average shares outstanding 10,416,624    11,472,729           -9.2 %Adjusted net income per diluted share$        13.01   $        10.28           26.6 %Economic profit per diluted share$        4.87   $        3.75           29.9 % Economic profit increased 17.9% for the three months ended September 30, 2026, as compared to the same period in 2025. Economic profit is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business. The following table summarizes the impact each of these components had on the changes in economic profit for the three months ended September 30, 2026, as compared to the same period in 2025.

(In millions)Year over Year Change in Economic Profit For the Three Months Ended September 30, 2026Increase in adjusted return on capital$        9.6  Increase in adjusted average capital         0.2  Increase in cost of capital         (2.1) Increase in economic profit$        7.7   Economic profit increased for the three months ended September 30, 2026, as compared to the same period in 2025, primarily as a result of an increase in our adjusted return on capital of 50 basis points. This increase was primarily due to an increase in the yield used to recognize adjusted finance charges on our loan portfolio, which increased our adjusted return on capital by 40 basis points, primarily due to higher expected yields on more recent Consumer Loan assignments, partially offset by a decline in Consumer Loan performance and slower forecasted net cash flow timing since the third quarter of 2025.

The following table shows adjusted finance charges as a percentage of adjusted average loans receivable, adjusted revenue and adjusted operating expenses as a percentage of adjusted average capital, the adjusted return on capital, and the percentage change in adjusted average capital for each of the last eight quarters, compared to the same period in the prior year:

  For the Three Months Ended  Sept. 30, 2026 Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 Sept. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024Adjusted finance charges as a percentage of adjusted average loans receivable (1)         17.2 %         17.4 %         17.0 %         16.9 %         16.8 %         17.0 %         16.7 %         16.5 %Adjusted revenue as a percentage of adjusted average capital (1)         19.2 %         19.3 %         19.0 %         18.8 %         18.6 %         18.3 %         18.0 %         18.4 %Adjusted operating expenses as a percentage of adjusted average capital (1)         6.1 %         6.2 %         6.6 %         5.8 %         6.1 %         5.9 %         6.1 %         5.6 %Adjusted return on capital (1)         9.9 %         9.8 %         9.3 %         9.8 %         9.4 %         9.3 %         9.2 %         9.8 %Percentage change in adjusted average capital compared to the same period in the prior year         0.6 %         -3.9 %         -3.9 %         0.3 %         3.7 %         11.2 %         18.3 %         19.3 % (1)   Annualized.

Cautionary Statement Regarding Forward-Looking Information

We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 13, 2026, and other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

Industry, Operational, and Macroeconomic Risks

Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity, and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.We are dependent on our senior management, and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.An outbreak of contagious disease or other public health emergency could materially and adversely affect our business, financial condition, liquidity, and results of operations.The concentration in several states of automobile dealers who participate in our programs could adversely affect us.Reliance on our outsourced business functions could adversely affect our business.Our ability to hire and retain foreign engineering personnel could be hindered by immigration restrictions.We may be unable to execute our business strategy due to current economic conditions.Natural disasters, climate change, military conflicts, acts of war, terrorist attacks and threats, or the escalation of military activity in response to terrorist attacks or otherwise may negatively affect our business, financial condition, and results of operations.Governmental or market responses to climate change and related environmental issues could have a material adverse effect on our business.A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of our other security holders. Capital and Liquidity Risks

We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.The terms of our debt limit how we conduct our business.A violation of the terms of our asset-backed secured financings or revolving secured warehouse facilities could have a material adverse impact on our operations.Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations, and adversely affect our financial condition.We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.Interest rate fluctuations may adversely affect our borrowing costs, profitability, and liquidity.Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition, and results of operations.We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity, and results of operations. Technology and Cybersecurity Risks

Our dependence on technology could have a material adverse effect on our business.We depend on secure information technology, and a breach of our systems or those of our third-party service providers could result in our experiencing significant financial, legal, and reputational exposure and could materially adversely affect our business, financial condition, and results of operations.Our use of electronic contracts could impact our ability to perfect our ownership or security interest in Consumer Loans.Failure to properly safeguard our proprietary business information or confidential consumer and team member personal information could subject us to liability, decrease our profitability, and damage our reputation.The development and use of artificial intelligence presents risks and challenges that may adversely impact our business. Legal and Regulatory Risks

Litigation we are involved in from time to time may adversely affect our financial condition, results of operations, and cash flows.Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.The regulations to which we are or may become subject could result in a material adverse effect on our business. Other factors not currently anticipated by management may also materially and adversely affect our business, financial condition, and results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements, whether as a result of new information or future events or otherwise, except as required by applicable law.

Webcast Details

We will host a webcast on October 29, 2026 at 5:00 p.m. Eastern Time to discuss our third quarter results. The webcast can be accessed live by visiting the “Investor Relations” section of our website at ir.creditacceptance.com or by telephone as described below. Only persons accessing the webcast by telephone will be able to pose questions to the presenters during the webcast. A replay and transcript of the webcast will be archived in the “Investor Relations” section of our website. 

To participate in the webcast by telephone, you must pre-register at https://register-conf.media-server.com/register/BIb09f4d3694a2478ba3f752ee48d8fc50, or through the link posted on the “Investor Relations” section of our website at ir.creditacceptance.com. Upon registration you will be provided with the dial-in number and a unique PIN to access the webcast by telephone.

Description of Credit Acceptance Corporation

We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
        

(Dollars in millions, except per share data)For the Three Months Ended September 30,  2026   2025Revenue:   Finance charges$        550.9   $        539.4 Premiums earned         25.3            24.1 Other income         18.4            18.9 Total revenue         594.6            582.4 Costs and expenses:   Salaries and wages         75.7            85.5 General and administrative         27.3            36.3 Sales and marketing         29.4            24.8 Total operating expenses         132.4            146.6     Provision for credit losses on forecast changes         281.9            88.1 Provision for credit losses on new Consumer Loan assignments         129.0            63.9 Total provision for credit losses         410.9            152.0     Interest         107.2            116.3 Provision for claims         17.6            18.6 Total costs and expenses         668.1            433.5 Income (loss) before provision (benefit) for income taxes         (73.5)           148.9 Provision (benefit) for income taxes         (16.9)           40.7 Net income (loss)$        (56.6)  $        108.2     Net income (loss) per share:   Basic$        (5.43)  $        9.62 Diluted$        (5.43)  $        9.43     Weighted average shares outstanding:   Basic         10,416,624            11,248,227 Diluted         10,416,624            11,472,729  CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(Dollars in millions, except per share data)As of September 30, 2026 December 31, 2025ASSETS:   Cash and cash equivalents$        1.3   $        22.8  Restricted cash and cash equivalents         516.9            477.9  Restricted securities available for sale         129.1            106.2      Loans receivable         11,960.7            11,511.5  Allowance for credit losses         (3,833.5)           (3,602.3) Loans receivable, net         8,127.2            7,909.2      Property and equipment, net         15.0            12.6  Income taxes receivable         53.4            67.2  Other assets         35.0            35.8  Total assets$        8,877.9   $        8,631.7      LIABILITIES AND SHAREHOLDERS' EQUITY:   Liabilities:   Accounts payable and accrued liabilities$        427.0   $        400.2  Revolving secured lines of credit         227.2            107.3  Secured financing         5,406.3            5,158.8  Senior notes         1,090.2            1,087.8  Deferred income taxes, net         337.9            354.0  Total liabilities         7,488.6            7,108.1      Shareholders’ Equity:   Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued         —            —  Common stock, $.01 par value, 80,000,000 shares authorized, 10,137,333 and 10,680,143 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively         0.1            0.1  Paid-in capital         528.4            403.3  Retained earnings         863.1            1,119.2  Accumulated other comprehensive income (loss)         (2.3)           1.0  Total shareholders’ equity         1,389.3            1,523.6  Total liabilities and shareholders’ equity$        8,877.9   $        8,631.7   Supplemental Information

Measures such as adjusted average capital, adjusted net income, adjusted net income per diluted share, interest expense (after-tax), adjusted net income plus interest expense (after-tax), adjusted return on capital, adjusted revenue, adjusted operating expenses, adjusted loans receivable, adjusted finance charges, adjusted average loans receivable, economic profit, and economic profit per diluted share are non-GAAP financial measures. The following tables provide a reconciliation of non-GAAP measures to GAAP measures.  Certain amounts do not recalculate due to rounding.

(Dollars in millions, except per share data) For the Three Months Ended  Sept. 30, 2026 Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 Sept. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024Adjusted net income                GAAP net income (loss) $        (56.6)  $        135.9   $        135.8   $        122.0   $        108.2   $        87.4   $        106.3   $        151.9  Floating yield adjustment (after-tax)          (117.5)           (115.8)           (118.7)           (115.9)           (119.0)           (117.1)           (118.9)           (116.8) GAAP provision for credit losses (after-tax)          308.2            119.4            104.7            97.2            114.0            129.6            124.6            95.0  Contingent loss (after-tax) (1)          —            —            —            26.9            11.2            17.5            —            —  Income tax adjustment (2)          1.4            (9.4)           (4.5)           (4.2)           3.5            0.9            2.8            (4.1) Adjusted net income $        135.5   $        130.1   $        117.3   $        126.0   $        117.9   $        118.3   $        114.8   $        126.0  Adjusted net income per diluted share $        13.01   $        12.12   $        10.71          $        11.35   $        10.28   $        10.05   $        9.35   $        10.17  Diluted weighted average shares outstanding  10,416,624    10,734,652    10,954,097    11,103,715    11,472,729    11,771,525    12,279,446    12,388,072  Adjusted revenue                GAAP total revenue $        594.6   $        587.4   $        580.0   $        579.9   $        582.4   $        583.8   $        571.1   $        565.9  Floating yield adjustment          (156.7)           (154.4)           (158.2)           (154.5)           (158.7)           (156.0)           (154.5)           (151.8) GAAP provision for claims          (17.6)           (18.0)           (15.8)           (17.2)           (18.6)           (19.8)           (16.1)           (17.7) Adjusted revenue $        420.3   $        415.0   $        406.0   $        408.2   $        405.1   $        408.0   $        400.5   $        396.4  Adjusted average capital                GAAP average debt $        6,446.9   $        6,352.8   $        6,271.8   $        6,409.6   $        6,400.1   $        6,583.8   $        6,398.3   $        6,202.5  GAAP average shareholders' equity          1,552.2            1,546.7            1,575.4            1,545.2            1,573.4            1,635.9            1,782.0            1,712.3  Income tax adjustment (3)          (96.9)           (96.9)           (96.9)           (96.9)           (96.9)           (100.5)           (118.5)           (118.5) Floating yield adjustment          845.1            783.1            787.4            805.0            822.6            813.5            820.8            837.0  Adjusted average equity          2,300.4            2,232.9            2,265.9            2,253.3            2,299.1            2,348.9            2,484.3            2,430.8  Adjusted average capital $        8,747.3   $        8,585.7   $        8,537.7   $        8,662.9   $        8,699.2   $        8,932.7   $        8,882.6   $        8,633.3  Adjusted revenue as a percentage of adjusted average capital (4)          19.2 %          19.3 %          19.0 %          18.8 %          18.6 %          18.3 %          18.0 %          18.4  %Adjusted loans receivable                GAAP loans receivable, net $        8,127.2   $        7,959.2   $        7,956.4   $        7,909.2   $        7,975.5   $        8,001.9   $        7,978.2   $        7,850.3  Floating yield adjustment          1,305.3            1,051.1            1,046.3            1,064.9            1,089.7            1,096.4            1,079.8            1,072.4  Adjusted loans receivable $        9,432.5   $        9,010.3   $        9,002.7   $        8,974.1   $        9,065.2   $        9,098.3   $        9,058.0   $        8,922.7  Adjusted loan yield                GAAP finance charges $        550.9   $        546.2   $        538.4   $        535.0   $        539.4   $        540.7   $        526.7   $        518.2  Floating yield adjustment          (156.7)           (154.4)           (158.2)           (154.5)           (158.7)           (156.0)           (154.5)           (151.8) Adjusted finance charges $        394.2   $        391.8   $        380.2   $        380.5   $        380.7   $        384.7   $        372.2   $        366.4  GAAP average loans receivable, net $        8,075.0   $        7,953.2   $        7,893.7   $        7,940.5   $        7,990.5   $        8,011.6   $        7,882.4   $        7,831.4  Average floating yield adjustment          1,114.6            1,035.5            1,037.9            1,058.0            1,080.9            1,064.1            1,048.9            1,071.4  Adjusted average loans receivable $        9,189.6   $        8,988.7   $        8,931.6   $        8,998.5   $        9,071.4   $        9,075.7   $        8,931.3   $        8,902.8  Adjusted finance charges as a percentage of adjusted average loans receivable (4)          17.2 %          17.4 %          17.0 %          16.9 %          16.8 %          17.0 %          16.7 %          16.5 % (1)   From time to time, we recognize a contingent loss related to legal matters. As contingent losses related to such matters are both unusual and infrequent in nature, and relate to business operations in prior periods, we have applied this adjustment to remove the impact of the contingent loss from our adjusted net income.
(2)   Adjustment to record taxes at our estimated long-term effective income tax rate. The adjustment for the three months ended September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025 is calculated using a 25% income tax rate, which is expected to be used for future periods. This rate represents an increase from 23%, which had been used to calculate after-tax adjustments since 2018, following the enactment in December 2017 of Public Law 115-97, commonly referred to as the Tax Cuts and Jobs Act (the “2017 Tax Act”). The increase in our long-term estimate was due to higher state and local income taxes in certain jurisdictions and lower excess tax benefits from stock-based compensation.
(3)   The enactment of the 2017 Tax Act resulted in the reversal of provision for income taxes to reflect a new, lower federal statutory income tax rate. We began applying the income tax adjustment at that time to remove the impact of this reversal from adjusted average capital. As the enactment of Public Law 119-21 on July 4, 2025 made the lower federal statutory tax rate permanent, removing uncertainty on the future federal statutory income tax rate, we increased our estimated long-term effective income tax rate from 23% to 25% to reflect higher expected state and local income taxes in certain jurisdictions and lower excess tax benefits from stock-based compensation in future periods. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.
(4)   Annualized.

(Dollars in millions) For the Three Months Ended  Sept. 30, 2026 Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 Sept. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024Interest expense (after-tax)                GAAP interest expense $        107.2   $        107.4   $        108.4   $        113.8   $        116.3   $        118.1   $        114.7   $        111.3  Adjustment to record tax effect (1)          (26.8)           (26.9)           (27.2)           (28.5)           (29.0)           (29.5)           (26.4)           (25.6) Interest expense (after-tax) $        80.4   $        80.5   $        81.2   $        85.3   $        87.3   $        88.6   $        88.3   $        85.7  Adjusted return on capital (2)                Adjusted net income $        135.5   $        130.1   $        117.3   $        126.0   $        117.9   $        118.3   $        114.8   $        126.0  Interest expense (after-tax)          80.4            80.5            81.2            85.3            87.3            88.6            88.3            85.7  Adjusted net income plus interest expense (after-tax) $        215.9   $        210.6   $        198.5   $        211.3   $        205.2   $        206.9   $        203.1   $        211.7  Reconciliation of GAAP return on equity to adjusted return on capital (5)                GAAP return on equity (3)          -14.6 %          35.1 %          34.5 %          31.6 %          27.5 %          21.4 %          23.9 %          35.5 %Non-GAAP adjustments          24.5 %          -25.3 %          -25.2 %          -21.8 %          -18.1 %          -12.1 %          -14.7 %          -25.7 %Adjusted return on capital (2)          9.9 %          9.8 %          9.3 %          9.8 %          9.4 %          9.3 %          9.2 %          9.8 %                 Economic profit                Adjusted return on capital          9.9 %          9.8 %          9.3 %          9.8 %          9.4 %          9.3 %          9.2 %          9.8 %Cost of capital (4) (5)          7.6 %          7.4 %          7.4 %          7.3 %          7.5 %          7.4 %          7.6 %          7.4 %Adjusted return on capital in excess of cost of capital          2.3 %          2.4 %          1.9 %          2.5 %          1.9 %          1.9 %          1.6 %          2.4 %Adjusted average capital $        8,747.3   $        8,585.7   $        8,537.7   $        8,662.9   $        8,699.2   $        8,932.7   $        8,882.6   $        8,633.3  Economic profit $        50.7   $        52.6   $        41.6   $        53.3   $        43.0   $        41.8   $        35.3   $        51.3  Reconciliation of GAAP net income (loss) to economic profit                GAAP net income (loss) $        (56.6)  $        135.9   $        135.8   $        122.0   $        108.2   $        87.4   $        106.3   $        151.9  Non-GAAP adjustments          192.1            (5.8)           (18.5)           4.0            9.7            30.9            8.5            (25.9 ) Adjusted net income          135.5            130.1            117.3            126.0            117.9            118.3            114.8            126.0  Interest expense (after-tax)          80.4            80.5            81.2            85.3            87.3            88.6            88.3            85.7  Adjusted net income plus interest expense (after-tax)          215.9            210.6            198.5            211.3            205.2            206.9            203.1            211.7  Less: cost of capital          165.2            158.0            156.9            158.0            162.2            165.1            167.8            160.4  Economic profit $        50.7   $        52.6   $        41.6   $        53.3   $        43.0   $        41.8   $        35.3   $        51.3  Economic profit per diluted share $        4.87   $        4.90   $        3.80   $        4.80   $        3.75   $        3.55   $        2.87   $        4.14  Adjusted operating expenses                Operating expenses $        132.4   $        134.1   $        141.2   $        162.3   $        146.6   $        155.5   $        135.5   $        121.6  Contingent loss (6)          —            —            —            (35.8)           (15.0)           (23.4)           —            —  Adjusted operating expenses $        132.4   $        134.1   $        141.2   $        126.5   $        131.6   $        132.1   $        135.5   $        121.6  Adjusted operating expenses as a percentage of adjusted average capital (5)          6.1 %          6.2 %          6.6 %          5.8 %          6.1 %          5.9 %          6.1 %          5.6 %Percentage change in adjusted average capital compared to the same period in the prior year          0.6 %          -3.9 %          -3.9 %          0.3 %          3.7 %          11.2 %          18.3 %          19.3 % (1)   Adjustment to record taxes at our estimated long-term effective income tax rate. The adjustment for the three months ended September 30, 2026, June 30, 2026, March 31, 2026, December 31, 2025, September 30, 2025, and June 30, 2025 is calculated using a 25% income tax rate, which is expected to be used for future periods. This rate represents an increase from 23%, which had been used to calculate after-tax adjustments since 2018, following the enactment of the 2017 Tax Act. The increase in our long-term estimate was due to higher state and local income taxes in certain jurisdictions and lower excess tax benefits from stock-based compensation.
(2)   Adjusted return on capital is defined as adjusted net income plus interest expense (after-tax) divided by adjusted average capital.
(3)   Calculated by dividing GAAP net income (loss) by GAAP average shareholders' equity.
(4)   The cost of capital includes both a cost of equity and a cost of debt.  The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt.  The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)].  For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:

  For the Three Months Ended  Sept. 30, 2026 Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 Sept. 30, 2025 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024Average 30-year Treasury rate         5.3 %         5.0 %         4.8 %         4.7 %         4.9 %         4.8 %         4.7 %         4.4 %Pre-tax average cost of debt (5)         6.7 %         6.8 %         6.9 %         7.1 %         7.3 %         7.2 %         7.2 %         7.2 % (5)   Annualized.
(6)   From time to time, we recognize a contingent loss related to legal matters. As contingent losses related to such matters are both unusual and infrequent in nature, and relate to business operations in prior periods, we have applied this adjustment to remove the impact of the contingent loss from our adjusted operating expenses.

Floating Yield Adjustment

The net loan income (finance charge revenue less provision for credit losses expense) that we recognize over the life of a loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the dealer. We believe the economics of our business are best exhibited by recognizing loan revenue on a level-yield basis over the life of the loan based on expected future net cash flows. The purpose of this non-GAAP adjustment is to provide insight into our business by showing this level yield measure of income. Under GAAP, contractual amounts due in excess of the loan receivable balance at the time of assignment will be reflected as interest income, while contractual amounts due that are not expected to be collected are reflected in the provision for credit losses. Our non-GAAP floating yield adjustment recognizes the net effects of contractual interest income and expected credit losses in a single measure of finance charge revenue, consistent with how we manage our business. The floating yield adjustment recognizes revenue on a level-yield basis based upon expected future net cash flows, with any changes in expected future net cash flows, which are recognized immediately under GAAP as provision for credit losses, recognized over the remaining forecast period (up to 120 months after the origination date of the underlying Consumer Loans) for each individual dealer loan and purchased loan. The floating yield adjustment does not accelerate revenue recognition. Rather, it reduces revenue by taking amounts that are reported under GAAP as provision for credit losses and instead treating them as reductions of revenue over time.

Under the GAAP methodology we employ, which is known as the current expected credit loss model, or CECL, we are required to recognize:

a significant provision for credit losses expense at the time of the loan’s assignment to us for contractual net cash flows we do not expect to realize; andfinance charge revenue in subsequent periods that is significantly in excess of our expected yield. Due to the GAAP treatment of contractual net cash flows we do not expect to realize at the time of loan assignment (i.e. significant expense at the time of loan assignment, which is offset by higher revenue in subsequent periods), we do not believe the GAAP methodology we employ provides sufficient transparency into the economics of our business, including our results of operations, financial condition, and financial leverage. Our floating yield adjustment enables us to provide measures of income that are not impacted by GAAP’s treatment of contractual net cash flows we do not expect to realize at the time of loan assignment. We believe the floating yield adjustment is presented in a manner which reflects both the economic reality of our business and how the business is managed and provides valuable supplemental information to help investors better understand our business, executive compensation, liquidity, and capital resources.

Idacorp (NYSE:IDA) reported third-quarter financial results on Thursday. The transcript from the company's third-quarter earnings call has been provided below.

Builders FirstSource, Inc. (BLDR) Q3 2026 Earnings Call October 29, 2026 9:00 AM EDT

Company Participants

Heather Kos - Senior Vice President of Investor Relations
Peter Jackson - President, CEO & Director
Pete Beckmann - Executive VP & CFO

Conference Call Participants

Matthew Bouley - Barclays Bank PLC, Research Division
Christopher Kalata - RBC Capital Markets, Research Division
Charles Perron-Piché - Goldman Sachs Group, Inc., Research Division
Rafe Jadrosich - BofA Securities, Research Division
Ryan Merkel - William Blair & Company L.L.C., Research Division
Matthew Johnson - UBS Investment Bank, Research Division
David Manthey - Robert W. Baird & Co. Incorporated, Research Division
Keith Hughes - Truist Securities, Inc., Research Division
Richard Reid - Wells Fargo Securities, LLC, Research Division
Trevor Allinson - Wolfe Research, LLC
Reuben Garner - StoneX Financial, Inc., Research Division
Collin Verron - Deutsche Bank AG, Research Division
Philip Ng - Jefferies LLC, Research Division

Presentation

Operator

Good day, and welcome to the Builders FirstSource Third Quarter 2026 Earnings Conference Call. Today's call is scheduled to last about 1 hour, including remarks by management and the Q&A session. [Operator Instructions] I would now like to turn the call over to Heather Kos, Senior Vice President, Investor Relations for Builders FirstSource. Please go ahead, ma'am.

Heather Kos
Senior Vice President of Investor Relations

Good morning, and welcome to our third quarter 2026 earnings call. With me on the call are Peter Jackson, our CEO; and Pete Beckmann, our CFO. The earnings press release and presentation are available on our website at investors.bldr.com. We will refer to the presentation during our call.

The results discussed today include GAAP and non-GAAP results adjusted for certain items. We provide these non-GAAP results for informational purposes, and they should not be considered in isolation from the most directly comparable GAAP measures. You can find the reconciliation of these non-GAAP measures to the corresponding GAAP measures where