CleanSpark Set to Report Q3 Earnings: What's in the Cards for the Stock?
The Zacks Consensus Estimate for fiscal third-quarter 2025 revenues is pegged at $195.1 million, suggesting a 87.4% year-over-year rise.
The consensus mark for earnings is pegged at break-even, narrower by 2 cents over the past 30 days. CLSK reported earnings of 1 cent in the year-ago quarter.
CleanSpark's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in the remaining one, delivering a negative earnings surprise of 59.29%, on average.
Cleanspark, Inc. Price and EPS Surprise
Cleanspark, Inc. price-eps-surprise | Cleanspark, Inc. Quote
Let us see how things have shaped up for the upcoming announcement.
Key Factors to Note for CLSK's Q3
CleanSpark's fiscal third-quarter performance is expected to have benefited from its strategic investments in energy-efficient infrastructure. As of March 31, the company had a total contracted power capacity of approximately 915 megawatts ('MW') across the United States, spanning over 30 locations in Georgia, Mississippi, Tennessee and Wyoming.
As of March 31, 2025, the company's operating mining units could produce more than 42.4 exahash per second ('EH/s') of computing power. Hashrate is a measure of the computing and processing power and speed by which a mining computer mines and processes transactions on the Bitcoin network. CLSK hit 50 EH/s in the to-be-reported quarter.
In April, May, and June, CleanSpark produced 633, 694 and 685 Bitcoins, respectively. As of June 30, 2025, CleanSpark's total Bitcoin holding was 12,608.
CleanSpark's transition from a nearly 100% HODL (hold-on-for-dear-life) Bitcoin treasury approach to a more balanced monetization strategy through selling a portion of mined Bitcoin to fund operations has been a key catalyst. The company sold 578.51 bitcoins in the to-be-reported quarter. CLSK's focus on achieving low marginal cost per Bitcoin is expected to have benefited profitability in the fiscal third quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the exact case here.
CleanSpark currently has an Earnings ESP of +2000.02% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:
Lumentum LITE currently has an Earnings ESP of +5.12% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
Lumentum shares are up 32.3% year to date. Lumentum is set to report its fourth-quarter fiscal 2025 results on Aug. 12.
Pagaya Technologies PGY has an Earnings ESP of +2.19% and has a Zacks Rank of #1 at present.
Pagaya shares have surged 246.7% year to date. Pagaya is set to report its second-quarter 2025 results on Aug. 7.
Genpact G presently has an Earnings ESP of +0.78% and a Zacks Rank #2.
Genpact shares have dropped 1% year to date. Genpact is scheduled to report its second-quarter 2025 results on Aug. 7.
Only $1 to See All Zacks' Buys and Sells
We're not kidding.
Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.
Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Genpact Limited (G): Free Stock Analysis Report
Lumentum Holdings Inc. (LITE): Free Stock Analysis Report
Cleanspark, Inc. (CLSK): Free Stock Analysis Report
Pagaya Technologies Ltd. (PGY): Free Stock Analysis Report
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
29 minutes ago
- National Post
RB Global Reports Second Quarter 2025 Results
Article content WESTCHESTER, Ill. — RB Global, Inc. (NYSE & TSX: RBA, the 'Company', 'RB Global', 'we', 'us', 'their', or 'our') reported the following results for the three months ended June 30, 2025. Article content 'I am pleased to report that we continued to gain automotive market share in the second quarter, with total automotive unit volume increasing 9% year-over-year,' said Jim Kessler, CEO of RB Global. 'Our teammates delivered another strong quarter, consistently over delivering against all our partner and customer expectations.' Article content 'We drove strong operating leverage in the quarter resulting in solid financial performance,' said Eric J. Guerin, Chief Financial Officer. 'Our ability to execute in a shifting macro environment highlights our teammates' dedication to our customers and partners.' Article content Second Quarter Financial Highlights 1,2,3: Article content Total gross transaction value ('GTV') increased 2% year over year to $4.2 billion. Total revenue increased 8% year over year to $1.2 billion. Service revenue increased 3% year over year at $887.2 million. Inventory sales revenue increased 26% year over year to $298.8 million. Net income decreased 1% year-over-year to $109.7 million. Net income available to common stockholders decreased 1% year over year to $99.5 million. Diluted earnings per share available to common stockholders decreased 2% to $0.53 per share. Diluted adjusted earnings per share available to common stockholders increased 14% year over year to $1.07 per share. Adjusted earnings before interest, taxes, depreciation and amortization ('EBITDA') increased 7% year over year to $364.5 million. Article content 2025 Financial Outlook Article content The Company has updated its full-year 2025 outlook for select financial data, as shown below: Article content __________________________ 1 For information regarding RB Global's use and definition of certain measures, see 'Key Operating Metrics' and 'Non-GAAP Measures' sections in this press release. 2 All figures are presented in U.S. dollars. 3 For the second quarter of 2025 as compared to the second quarter of 2024. 4 Capital expenditures is defined as property, plant and equipment, net of proceeds on disposals, plus intangible asset additions. Article content Additional Financial and Operational Highlights Article content Three months ended June 30, Six months ended June 30, % Change % Change (in U.S. dollars in millions, except EPS and percentages) 2025 2024 2025 over 2024 2025 2024 2025 over 2024 GTV $ 4,198.1 $ 4,104.1 2 % $ 8,027.0 $ 8,181.5 (2 )% Service revenue 887.2 859.1 3 % 1,739.7 1,708.2 2 % Service revenue take rate 21.1 % 20.9 % 20bps 21.7 % 20.9 % 80bps Inventory sales revenue $ 298.8 $ 237.0 26 % $ 554.9 $ 452.6 23 % Inventory return 12.4 14.3 (13 )% 33.5 33.3 1 % Inventory rate 4.1 % 6.0 % (190)bps 6.0 % 7.4 % (140)bps Net income $ 109.7 $ 111.0 (1 )% $ 223.0 $ 218.4 2 % Net income available to common stockholders 99.5 100.7 (1 )% 202.4 197.8 2 % Adjusted EBITDA 364.5 342.0 7 % 692.4 673.1 3 % Diluted earnings per share available to common stockholders $ 0.53 $ 0.54 (2 )% $ 1.09 $ 1.07 2 % Diluted adjusted earnings per share available to common stockholders $ 1.07 $ 0.94 14 % $ 1.96 $ 1.84 7 % Revenue Three months ended June 30, Six months ended June 30, % Change % Change (in U.S. dollars in millions, except percentages) 2025 2024 2025 over 2024 2025 2024 2025 over 2024 Transactional seller revenue $ 241.0 $ 250.7 (4 )% $ 457.8 $ 489.3 (6 )% Transactional buyer revenue 560.6 510.0 10 % 1,117.3 1,035.4 8 % Marketplace services revenue 85.6 98.4 (13 )% 164.6 183.5 (10 )% Total service revenue 887.2 859.1 3 % 1,739.7 1,708.2 2 % Inventory sales revenue 298.8 237.0 26 % 554.9 452.6 23 % Total revenue $ 1,186.0 $ 1,096.1 8 % $ 2,294.6 $ 2,160.8 6 % For the Second Quarter: GTV increased 2% year over year to $4.2 billion, primarily due to an increase in the automotive sector, partially offset by a decline in the commercial construction and transportation ('CC&T') sector. Automotive GTV increased due to growth in lot volume from existing partners, as well as year-over-year market share gains, partially offset by a lower average price per lot sold. The decrease in CC&T GTV was primarily driven by the lower lot volumes as customer take a wait-and-see approach given the current macro-economic environment, combined with lower volumes from our enterprise customers, as we benefited from certain significant large customer dispositions in the prior period. Partially offsetting lower volumes, the average price per lot sold increased due to an improved mix. Service revenue increased 3% year-over-year to $887.2 million, driven by higher GTV and an increase in service revenue take rate. Service revenue take rate expanded 20 basis points year over year to 21.1% driven by a higher buyer fee rate structure, partially offset by lower marketplace services revenue and a lower average commission rate. The decline in marketplace services revenue was driven by lower fees earned from transportation services compared to the prior period. Inventory sales revenue increased 26% year over year to $298.8 million, primarily due to higher inventory revenue from the CC&T sector. The inventory rate declined 190 basis points year over year to 4.1%, primarily due to weaker performance across all sectors. Inventory rate and returns include an inventory write-down of $1.7 million related to the LKQ SYNETIQ transaction. Net income available to common stockholders decreased to $99.5 million, primarily driven by the decrease in operating income, partially offset by lower interest expense due to lower long-term debt levels driven by repayments of principal and lower interest rates, partly as a result of the recent refinancing of our Credit Agreement. Adjusted EBITDA 1 Article content Total Lots Sold by Sector Three months ended June 30, Six months ended June 30, % Change % Change (in '000's of lots sold, except percentages) 2025 2024 2025 over 2024 2025 2024 2025 over 2024 Automotive 595.9 547.7 9 % 1,221.5 1,132.3 8 % Commercial construction and transportation 97.5 118.2 (18) % 185.1 227.0 (18) % Other 2 153.8 173.6 (11) % 295.7 319.2 (7) % Total lots sold 847.2 839.5 1 % 1,702.3 1,678.5 1 % Article content __________________________ 1 For information regarding RB Global's use and definition of this measure, see 'Key Operating Metrics' and 'Non-GAAP Measures' sections in this press release. 2 Total GTV and total lots sold in the other sector exclude the results from LKQ SYNETIQ from June 21 2025, the date of its deconsolidation from the Company. Article content The below table reconciles as reported operating expenses by line item to adjusted operating expenses to exclude the impact of adjustments as defined in our Non-GAAP Measures. Article content For the three months ended June 30, 2025 (in U.S. dollars in millions) Cost of services Cost of inventory sold Selling, general and administrative expenses Acquisition- related and integration costs Depreciation and amortization Total operating expenses As reported $ 353.9 $ 286.4 $ 222.2 $ 2.7 $ 116.7 $ 981.9 Share-based payments expense — — (25.2 ) — — (25.2 ) Acquisition- related and integration costs — — — (2.7 ) — (2.7 ) Amortization of acquired intangible assets — — — — (68.3 ) (68.3 ) Prepaid consigned vehicle charges 0.2 — — — — 0.2 Executive transition costs — — (3.1 ) — — (3.1 ) Loss on deconsolidation and related costs — (1.7 ) (2.5 ) — — (4.2 ) Debt refinancing costs — — (3.9 ) — — (3.9 ) Remeasurements in connection with business combinations — — (0.1 ) — — (0.1 ) Other legal, advisory, restructuring and non-income tax expenses — — (4.3 ) — — (4.3 ) Adjusted $ 354.1 $ 284.7 $ 183.1 $ — $ 48.4 $ 870.3 Article content For the six months ended June 30, 2025 (in U.S. dollars in millions) Cost of services Cost of inventory sold Selling, general and administrative expenses Acquisition- related and integration costs Depreciation and amortization Total operating expenses As reported $ 715.8 $ 521.4 $ 427.2 $ 5.8 $ 231.2 $ 1,901.4 Share-based payments expense — — (39.6 ) — — (39.6 ) Acquisition- related and integration costs — — — (5.8 ) — (5.8 ) Amortization of acquired intangible assets — — — — (136.6 ) (136.6 ) Loss on disposition of property, plant and equipment and related costs — — (0.2 ) — — (0.2 ) Prepaid consigned vehicle charges 0.5 — — — — 0.5 Executive transition costs — — (5.8 ) — — (5.8 ) Loss on deconsolidation and related costs — (1.7 ) (2.5 ) — — (4.2 ) Debt refinancing costs — — (3.9 ) — — (3.9 ) Remeasurements in connection with business combinations — — (0.1 ) — — (0.1 ) Other legal, advisory, restructuring and non-income tax expenses (1.0 ) — (7.3 ) — — (8.3 ) Adjusted $ 715.3 $ 519.7 $ 367.8 $ — $ 94.6 $ 1,697.4 Article content Dividend Information Article content Quarterly Dividend Article content On August 5, 2025, the Company declared a quarterly cash dividend of $0.31 per common share, payable on September 18, 2025, to shareholders of record on August 28, 2025. Article content Other Company Developments Article content On July 14, 2025, we completed the acquisition of J.M. Wood Auction Co., Inc., an auction business based in Alabama, United States, for consideration of approximately $235 million, plus approximately $8 million for inventory held for auction at the time of closing. On June 21, 2025, through our wholly-owned subsidiary SYNETIQ Ltd., we entered into an agreement with LKQ Europe to jointly provide vehicle parts dismantling and distribution services through the newly created venture, LKQ SYNETIQ. The Company retained a 40% equity interest and LKQ Europe acquired a 60% equity interest in LKQ SYNETIQ in exchange for proceeds of £8.0 million (approximately $11.0 million) to be paid in equal installments on the third, fourth, and fifth anniversaries of the closing date. Article content Second Quarter 2025 Earnings Conference Call Article content RB Global is hosting a conference call to discuss its financial results for the quarter ended June 30, 2025, at 4:30 PM ET on August 6, 2025. The replay of the webcast will be available through August 6, 2026. Article content Conference call and webcast details are available at the following link: About RB Global RB Global, Inc. (NYSE: RBA) (TSX: RBA) is a leading, omnichannel marketplace that provides value-added insights, services and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide. Through our auction sites and digital platform, we have a wide global presence and serve customers across a variety of asset classes, including automotive, commercial transportation, construction, government surplus, lifting and material handling, energy, mining and agriculture. Our marketplace brands include Ritchie Bros., the world's largest auctioneer of commercial assets and vehicles offering online bidding, and IAA, Inc. ('IAA'), a leading global digital marketplace connecting vehicle buyers and sellers. Our portfolio of brands also includes Rouse Services ('Rouse'), which provides a complete end-to-end asset management, data-driven intelligence and performance benchmarking system; SmartEquip Inc. ('SmartEquip'), an innovative technology platform that supports customers' management of the equipment lifecycle and integrates parts procurement with both OEMs and dealers; and VeriTread LLC ('VeriTread'), an online marketplace for heavy haul transport. Article content Forward-looking Statements Article content This news release contains forward-looking statements and forward-looking information within the meaning of applicable U.S. and Canadian securities legislation (collectively, 'forward-looking statements'), including, in particular, statements regarding future financial and operational results, opportunities, and any other statements regarding events or developments that RB Global believes or anticipates will or may occur in the future. Forward-looking statements are statements that are not historical facts and are generally, although not always, identified by words such as 'expect', 'plan', 'anticipate', 'project', 'target', 'potential', 'schedule', 'forecast', 'budget', 'confident', 'estimate', 'intend' or 'believe' and similar expressions or their negative connotations, or statements that events or conditions 'will', 'would', 'may', 'remain', 'could', 'should' or 'might' occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements necessarily involve assumptions, risks and uncertainties, certain of which are beyond RB Global's control, including risks and uncertainties related to: our ability to integrate acquisitions, including the recently acquired J.M. Wood; the fact that operating costs and business disruption may be greater than expected; the effect of the consummation of the merger on the trading price of RB Global's common shares; the ability of RB Global to retain and hire key personnel and employees; the significant costs associated with the merger; the outcome of any legal proceedings that have been or could be instituted against RB Global; the ability of the Company to realize anticipated synergies in the amount, manner or timeframe expected or at all; the failure of the Company to achieve expected operating results in the amount, manner or timeframe expected or at all; changes in capital markets and the ability of the Company to generate cash flow and/or finance operations in the manner expected or to de- lever in the timeframe expected; the failure of RB Global or the Company to meet financial forecasts and/or key performance targets including the Company's key operating metrics; the Company's ability to commercialize new platform solutions and offerings; legislative, regulatory and economic developments affecting the combined business; general economic and market developments and conditions, including as a result of global trade tensions and as a result of current, proposed or future tariffs; the evolving legal, regulatory and tax regimes under which RB Global operates; unpredictability and severity of catastrophic events, including, but not limited to, pandemics, acts of terrorism or outbreak of war or hostilities, as well as RB Global's response to any of the aforementioned factors. Other risks that could cause actual results to differ materially from those described in the forward-looking statements are included in RB Global's periodic reports and other filings with the Securities and Exchange Commission ('SEC') and/or applicable Canadian securities regulatory authorities, including the risk factors identified under Item 1A 'Risk Factors' and the section titled 'Summary of Risk Factors' in RB Global's most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and RB Global's periodic reports and other filings with the SEC, which are available on the SEC, SEDAR and RB Global' websites. The foregoing list is not exhaustive of the factors that may affect RB Global's forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, and actual results may differ materially from those expressed in, or implied by, these forward-looking statements. Forward-looking statements are made as of the date of this news release and RB Global does not undertake any obligation to update the information contained herein unless required by applicable securities legislation. For the reasons set forth above, you should not place undue reliance on forward-looking statements. Article content Key Operating Metrics Article content We regularly review a number of metrics, including the following key operating metrics, to evaluate our business, measure our performance, identify trends affecting our business, and make operating decisions. We believe these key operating metrics are useful to investors because management uses these metrics to assess the growth of our business and the effectiveness of our operational strategies. Article content We define our key operating metrics as follows: Article content : Represents total proceeds from all items sold on our auctions and online marketplaces, third-party online marketplaces, private brokerage services and other disposition channels. GTV is not a measure of financial performance, liquidity, or revenue, and is not presented in the Company's consolidated financial statements. Article content Total service revenue take rate: Article content Total service revenue divided by total GTV. Article content Inventory return: Article content Inventory sales revenue less cost of inventory sold. Article content Inventory rate: Article content Inventory return divided by inventory sales revenue. Article content GTV and Selected Condensed Consolidated Financial Information (Expressed in millions of U.S. dollars, except share and per share data) (Unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 GTV $ 4,198.1 $ 4,104.1 $ 8,027.0 $ 8,181.5 Revenue: Service revenue $ 887.2 $ 859.1 $ 1,739.7 $ 1,708.2 Inventory sales revenue 298.8 237.0 554.9 452.6 Total revenue 1,186.0 1,096.1 2,294.6 2,160.8 Operating expenses: Costs of services 353.9 348.8 715.8 701.8 Cost of inventory sold 286.4 222.7 521.4 419.3 Selling, general and administrative 222.2 208.6 427.2 406.7 Acquisition-related and integration costs 2.7 4.1 5.8 16.9 Depreciation and amortization 116.7 110.3 231.2 218.0 Total operating expenses 981.9 894.5 1,901.4 1,762.7 Gain on disposition of property, plant and equipment — 0.3 0.4 2.7 Loss on deconsolidation (15.5 ) — (15.5 ) — Operating income 188.6 201.9 378.1 400.8 Interest expense (47.5 ) (59.9 ) (97.4 ) (123.8 ) Interest income 4.0 6.8 7.0 13.4 Other income (loss), net 0.2 (0.2 ) 0.9 (1.0 ) Foreign exchange gain (loss) 0.2 (1.0 ) (0.2 ) (1.9 ) Income before income taxes 145.5 147.6 288.4 287.5 Income tax expense 35.8 36.6 65.4 69.1 Net income $ 109.7 $ 111.0 $ 223.0 $ 218.4 Net income (loss) attributable to: Controlling interests $ 109.8 $ 111.1 $ 223.2 $ 218.5 Redeemable non-controlling interests (0.1 ) (0.1 ) (0.2 ) (0.1 ) Net income $ 109.7 $ 111.0 $ 223.0 $ 218.4 Net income attributable to controlling interests $ 109.8 $ 111.1 $ 223.2 $ 218.5 Cumulative dividends on Series A Senior Preferred Shares (6.7 ) (6.7 ) (13.4 ) (13.4 ) Allocated earnings to Series A Senior Preferred Shares (3.6 ) (3.7 ) (7.4 ) (7.3 ) Net income available to common stockholders $ 99.5 $ 100.7 $ 202.4 $ 197.8 Basic earnings per share available to common stockholders $ 0.54 $ 0.55 $ 1.09 $ 1.08 Diluted earnings per share available to common stockholders $ 0.53 $ 0.54 $ 1.09 $ 1.07 Basic weighted average number of shares outstanding 185,365,576 183,887,145 185,096,464 183,473,233 Article content Condensed Consolidated Statements of Cash Flows (Expressed in millions of U.S. dollars) (Unaudited) Six months ended June 30, 2025 2024 Cash provided by (used in): Operating activities: Net income $ 223.0 $ 218.4 Adjustments for items not affecting cash: Depreciation and amortization 231.2 218.0 Share-based payments expense 41.6 35.1 Deferred income tax benefit — (31.0 ) Unrealized foreign exchange loss 0.2 0.4 Gain on disposition of property, plant and equipment (0.4 ) (2.7 ) Loss on deconsolidation 15.5 — Allowance for expected credit losses 1.5 4.9 Amortization of debt issuance costs 4.8 6.7 Amortization of right-of-use assets 78.2 75.8 Other, net 5.5 9.6 Net changes in operating assets and liabilities (117.8 ) (73.1 ) Net cash provided by operating activities 483.3 462.1 Investing activities: Property, plant and equipment additions (139.1 ) (73.9 ) Proceeds on disposition of property, plant and equipment 2.1 1.0 Intangible asset additions (61.2 ) (56.2 ) Proceeds from repayment of loans receivable 5.1 4.0 Issuance of loans receivable (33.0 ) (5.5 ) Other, net (1.8 ) (1.1 ) Net cash used in investing activities (227.9 ) (131.7 ) Financing activities: Dividends paid to common stockholders (107.3 ) (98.9 ) Dividends paid to Series A Senior Preferred shareholders (17.1 ) (17.0 ) Proceeds from exercise of options and share option plans 27.2 51.9 Payment of withholding taxes on issuance of shares (20.2 ) (11.2 ) Net increase in short-term debt 56.0 16.2 Proceeds from long-term debt 275.0 — Repayment of long-term debt (326.0 ) (252.2 ) Payment of debt issuance costs (4.4 ) — Repayment of finance lease and equipment financing obligations (16.0 ) (12.9 ) Proceeds from equipment financing obligations 1.9 1.7 Net cash used in financing activities (130.9 ) (322.4 ) Effect of changes in foreign currency rates on cash, cash equivalents, and restricted cash 22.7 (10.3 ) Net increase (decrease) in cash, cash equivalents, and restricted cash 147.2 (2.3 ) Cash, cash equivalents, and restricted cash, beginning of period 708.8 747.9 Cash, cash equivalents, and restricted cash, end of period $ 856.0 $ 745.6 Article content Non-GAAP Measures Article content This news release references non-GAAP measures. These measures do not have a standardized meaning and are, therefore, unlikely to be comparable to similar measures presented by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. Article content The Company has not provided a reconciliation of Adjusted EBITDA outlook for fiscal 2025 to GAAP net income, the most directly comparable GAAP financial measure, because without unreasonable efforts, it is unable to predict with reasonable certainty the amount or timing of non-GAAP adjustments that are used to calculate Adjusted EBITDA, including but not limited to: (a) the net loss or gain on the sale of property plant & equipment, or other assets (b) loss on deconsolidation and related costs (c) acquisition-related or integration costs relating to our mergers and acquisition activity, including severance costs, (d) other legal, advisory, restructuring and non-income tax expenses, (e) share-based payments compensation expense which value is directly impacted by the fluctuations in our share price and other variables, and (f) other expenses that we do not believe are indicative of our ongoing operations. These adjustments are uncertain, depend on various factors that are beyond our control and could have a material impact on net income for fiscal 2025. Article content Please refer to the quarterly report on Form 10-Q for the quarter ended June 30, 2025 for a summary of adjusting items during the trailing twelve months ended June 30, 2025 and June 30, 2024. Article content Adjusted Net Income Available to Common Stockholders and Diluted Adjusted EPS Available to Common Stockholders Reconciliation Article content The Company believes that adjusted net income available to common stockholders provides useful information about the growth or decline of the net income available to common stockholders for the relevant financial period and eliminates the financial impact of adjusting items the Company does not consider to be part of the normal operating results. Diluted adjusted EPS available to common stockholders eliminates the financial impact of adjusting items from net income available to common stockholders that the Company does not consider to be part of the normal operating results. Article content Adjusted net income available to common stockholders is calculated as net income available to common stockholders, excluding the effects of adjusting items that we do not consider to be part of our normal operating results, such as share- based payments expense, acquisition-related and integration costs, amortization of acquired intangible assets, executive transition costs and certain other items. Article content Net income available to common stockholders is calculated as net income attributable to controlling interests, less cumulative dividends on Series A Senior Preferred Shares and allocated earnings to participating securities. Article content Diluted adjusted EPS available to common stockholders is calculated by dividing adjusted net income available to common stockholders by the weighted average number of dilutive shares outstanding, except that it is computed based upon the lower of the two-class method or the if-converted method, which includes the effects of the assumed conversion of the Series A Senior Preferred Shares and the effect of shares issuable under the Company's stock-based incentive plans, if such effect is dilutive. Article content Three months ended June 30, Six months ended June 30, % Change % Change (in U.S. dollars in millions, except share, per share data, and percentages) 2025 2024 2025 over 2024 2025 2024 2025 over 2024 Net income available to common stockholders $ 99.5 $ 100.7 (1 )% $ 202.4 $ 197.8 2 % Share-based payments expense 25.2 18.1 39 % 39.6 31.4 26 % Acquisition-related and integration costs 2.7 4.1 (34 )% 5.8 16.9 (66 )% Amortization of acquired intangible assets 68.3 69.0 (1 )% 136.6 138.6 (1 )% (Gain) loss on disposition of property, plant and equipment and related costs — 0.4 NM (0.2 ) (1.4 ) (86 )% Prepaid consigned vehicles charges (0.2 ) (1.3 ) (85 )% (0.5 ) (3.4 ) (85 )% Executive transition costs 3.1 2.0 55 % 5.8 3.7 57 % Loss on deconsolidation and related costs 19.7 — NM 19.7 — NM Debt refinancing costs 3.9 — NM 3.9 — NM Remeasurements in connection with business combinations 0.1 — NM 0.1 — NM Other legal, advisory, restructuring and non-income tax expenses 4.3 7.7 (44 )% 8.2 10.0 (18 )% Related tax effects of the above (22.4 ) (24.0 ) (7 )% (49.7 ) (48.8 ) 2 % Related allocation of the above to participating securities (3.7 ) (2.6 ) 42 % (6.0 ) (5.2 ) 15 % Adjusted net income available to common stockholders $ 200.5 $ 174.1 15 % $ 365.7 $ 339.6 8 % Weighted average number of dilutive shares outstanding 186,649,132 184,912,584 1 % 186,502,548 184,746,818 1 % Diluted earnings per share available to common stockholders $ 0.53 $ 0.54 (2 )% $ 1.09 $ 1.07 2 % Diluted adjusted earnings per share available to common stockholders $ 1.07 $ 0.94 14 % $ 1.96 $ 1.84 7 % NM = Not meaningful Article content Adjusted EBITDA Article content The Company believes adjusted EBITDA provides useful information about the growth or decline of its net income when compared between different financial periods. The Company uses adjusted EBITDA as a key performance measure because the Company believes it facilitates operating performance comparisons from period to period and provides management with the ability to monitor its controllable incremental revenues and costs. Article content Adjusted EBITDA is calculated by adding back depreciation and amortization, interest expense, income tax expense, and subtracting interest income from net income, as well as adding back the adjusting items. Article content Adjusted Net Debt and Adjusted Net Debt/Adjusted EBITDA Reconciliation Article content The Company believes that comparing adjusted net debt/adjusted EBITDA on a trailing twelve-month basis for different financial periods provides useful information about the performance of its operations as an indicator of the amount of time it would take to settle both the Company's short and long-term debt. The Company does not consider this to be a measure of its liquidity, which is its ability to settle only short-term obligations, but rather a measure of how well it funds liquidity. Measures of liquidity are noted under 'Liquidity and Capital Resources' in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025. Article content Adjusted net debt is calculated by subtracting cash and cash equivalents from short and long-term debt and long-term debt in escrow. Adjusted net debt/Adjusted EBITDA is calculated by dividing adjusted net debt by adjusted EBITDA. Article content Article content Article content Article content Article content Contacts Article content Article content Article content
Globe and Mail
2 hours ago
- Globe and Mail
SIS, LLC Announces Successful Go-Live of CRB on Microsoft Dynamics 365 and SIS Construct 365 Project Cost Management
DULUTH, Ga., Aug. 6, 2025 /CNW/ -- SIS, LLC, a Microsoft Solutions Partner for Business Applications and leading implementer of ERP and CRM solutions for the construction industry, is thrilled to announce the successful go-live of CRB Group on Microsoft Dynamics 365 (D365) and SIS Construct 365 Project Cost Management (PCM) solution. This milestone marks a significant step in CRB's digital transformation journey, empowering their teams with cutting-edge tools to drive efficiency, profitability, and growth.
Globe and Mail
2 hours ago
- Globe and Mail
DaVita Stock Down Despite Q2 Earnings Beat, Gross Margin Expands
DaVita Inc. DVA delivered adjusted earnings per share (EPS) of $2.95 in the second quarter of 2025, up 13.9% year over year. The figure surpassed the Zacks Consensus Estimate by 9.3%. GAAP EPS for the quarter was $2.58, reflecting an uptick of 3.2% year over year. DaVita's Revenues in Detail Revenues of $3.38 billion in the second quarter increased 6.1% year over year. The figure topped the Zacks Consensus Estimate by 1.3%. Revenue per treatment in the second quarter of 2025 was $404.6 million, up 3.7% year over year and 1.1% sequentially. Per management, this was primarily driven by normal seasonal improvements, including patients meeting their co-insurance and deductibles. This was partially offset by decreased volume of phosphate binders. Shares of this company plunged nearly 10.1% till last trading. DVA's Segment Details DaVita generates revenues via two sources — Dialysis patient service revenues and Other revenues. The dialysis patient service revenues were $3.21 billion, up 4.8% year over year. Other revenues were $172.7 million, up 37.4% from the year-ago quarter's figure. Per management, the total U.S. dialysis treatments for the second quarter were 7,186,217 or 92,131 per day, on average. This represents a per-day increase of 0.4% on a sequential basis. Normalized non-acquired treatment declined 0.8% year over year in the second quarter of 2025. As of June 30, 2025, DaVita provided dialysis services to around 283,100 patients at 3,175 outpatient dialysis centers, of which 2,662 were U.S. centers while 513 were located across 13 other countries. During the second quarter of 2025, the company acquired one, opened three and closed two dialysis centers in the United States. It also opened six and closed five dialysis centers outside the United States in the same period. As of June 30, 2025, DaVita had approximately 64,400 patients in risk-based integrated care arrangements in its Integrated Kidney Care business, representing $5.3 billion in annualized medical spend. The company also had an additional 9,300 patients in other integrated care arrangements. DaVita's Margin Details In the quarter under review, DaVita's gross profit increased 7% year over year to $1.12 billion. The gross margin expanded 31 basis points (bps) to 33.1%. General & administrative expenses climbed 12.2% year over year to $412.8 million. Adjusted operating profit totaled $705.2 million, reflecting a 4.2% increase from the prior-year quarter's level. Adjusted operating margin in the second quarter contracted 36 bps to 20.9%. DVA's Financial Position DaVita exited second-quarter 2025 with cash and cash equivalents and short-term investments of $739.4 million compared with $511.9 million at the first-quarter end. Total debt (including the current portion) at the end of second-quarter 2025 was $10.26 billion compared with $9.74 billion at the first-quarter end. Cumulative net cash provided by operating activities at the end of second-quarter 2025 was $504.2 million compared with $664 million a year ago. During the three months ended June 30, 2025, DVA repurchased 3.1 million shares for $446 million. DaVita's Guidance DaVita has reiterated its adjusted EPS outlook for 2025. Adjusted EPS for the full year is continued to be projected in the range of $10.20-$11.30. The Zacks Consensus Estimate currently stands at $10.76. Our Take on DVA DaVita ended the second quarter of 2025 with better-than-expected results. The uptick in the company's top and bottom lines and revenue per treatment was encouraging. The per-day increase in total U.S. dialysis treatments for the second quarter on a sequential basis and solid revenues from both sources were encouraging. The opening and acquiring of dialysis centers within the United States and acquiring centers overseas were promising. The gross margin expansion bodes well for the stock. However, the year-over-year decline in normalized non-acquired treatment was disappointing. The contraction of the adjusted operating margin does not bode well for the stock. DaVita's Zacks Rank and Key Picks DVA currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space that have announced quarterly results are GE HealthCare Technologies Inc. GEHC, West Pharmaceutical Services, Inc. WST and Boston Scientific Corporation BSX. GE HealthCare, sporting a Zacks Rank #1 (Strong Buy), reported second-quarter 2025 adjusted EPS of $1.06, beating the Zacks Consensus Estimate by 16.5%. Revenues of $5.01 billion outpaced the consensus mark by 0.7%. You can see the complete list of today's Zacks #1 Rank stocks here. GE HealthCare has a long-term estimated growth rate of 5.8%. GEHC's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 12.5%. West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1. West Pharmaceutical has a long-term estimated growth rate of 8.4%. WST's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%. Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy). Boston Scientific has a long-term estimated growth rate of 14%. BSX's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report DaVita Inc. (DVA): Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST): Free Stock Analysis Report GE HealthCare Technologies Inc. (GEHC): Free Stock Analysis Report
