Recent Survey Shows Car Buyers Want Simplicity To Save Money
AutoPacific surveyed more than 14,000 potential new car buyers in the sub-$35,000 price range, asking about their interest in new features like Apple CarPlay and Android Auto, leather seats, and sunroofs. While many said they'd like to have smartphone connectivity and other features, they were far less interested in tech like head-up displays, configurable gauge clusters, and fancy lighting animations.
AutoPacific's manager of product and consumer insights, Robby DeGraff, said, "Front-wheel drive, base stereos, cloth seats with various manual adjustments, and analog gauges are 'in.' So the array of standard equipment found on entry- and mid-level trims of todays popular vehicles within the $25,000 to $35,000 price range may need to be reexamined as consumers tighten their belts in the face of economic uncertainty."
Budget buyers may care less about some features, but they agree with their more affluent counterparts in some areas. Everyone cares about safety equipment, like parking sensors and automatic emergency braking, though the budget buyers were less interested in semi-autonomous driving features and adaptive cruise control.
The number of new cars in the sub-$35,000 price range has dwindled, but there are still several great choices available. Nissan still sells the Versa for under $20,000 to start, and it's hard to spec a Toyota Corolla or Honda Civic past the $30,000 mark.
Related: Why Cheap New Cars Are Disappearing in 2025
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Laird Superfood Reports Second Quarter 2025 Financial Results
BOULDER, Colo.--(BUSINESS WIRE)--Laird Superfood, Inc. (NYSE American: LSF) ('Laird Superfood,' the 'Company', 'we', and 'our'), today reported financial results for the second quarter ended June 30, 2025. Jason Vieth, Chief Executive Officer, commented, 'I am very proud of our second quarter results and the efforts by our team, which delivered 20% net sales growth year-over-year and approximately 40% gross margin in a challenging consumer and economic environment. Our growth was once again driven by our Wholesale business, which grew year-over-year by nearly 50%, in alignment with our stated strategy to expand our Laird Superfood brand in that channel. Operationally, we continued to prove our agility in managing our supply chain. Even in the face of unprecedented tariff pressures, we were able to deliver gross margin results that are among the best in our industry. Going forward we will continue to invest into the growth of our brand, and are thrilled to once again be among the fastest growing food companies in the public markets.' Second Quarter 2025 Highlights Net Sales of $12.0 million compared to $10.0 million in the corresponding prior year period and $11.7 million in the first quarter of 2025. Wholesale sales increased by 47% year-over-year and contributed 48% of total Net Sales, primarily driven by distribution gains in grocery and club stores, while total trade spend remained nearly flat. E-commerce sales increased by 2% year-over-year and contributed 52% of total Net Sales, driven by continued strong performance on Gross Margin was 39.9% compared to 41.8% in the corresponding prior year period, and 41.9% in the first quarter of 2025. Gross margin compression relative to the prior year period was primarily due to increased promotional trade spend, commodity cost inflation, and channel mix. Net Loss was $0.4 million, or $0.03 per diluted share, compared to Net Loss of $0.2 million, or $0.02 per diluted share, in the corresponding prior year period and Net Loss of $0.2 million, or $0.02 per diluted share, in the first quarter of 2025. The increase in Net Loss relative to the prior year period was driven primarily by higher marketing investment, higher selling costs on top-line sales, and personnel costs related to stock-based compensation. Adjusted EBITDA, which is a non-GAAP financial measure, was $0.1 million, or $0.01 per diluted share, compared to ($0.1) million, or ($0.01) per diluted share, in the corresponding prior year period and $0.4 million, or $0.03 per diluted share, in the first quarter of 2025. For more details on non-GAAP financial measures, refer to the information in the non-GAAP financial measures section of this press release. Year-to-Date 2025 Highlights Net Sales of $23.6 million compared to $19.9 million in the corresponding prior year period. Wholesale sales increased by 41% year-over-year and contributed 47% of total Net Sales, primarily driven by distribution gains in grocery and club stores, as well as velocity growth, partially offset by increased promotional spend. E-commerce sales increased by 4% year-over-year and contributed 53% of total Net Sales, with significant improvements in media efficiency and strong performance on Gross Margin was relatively flat compared to the corresponding prior year period. Net Loss was $0.5 million, or $0.05 per diluted share, compared to Net Loss of $1.3 million, or $0.13 per diluted share, in the corresponding prior year period. The improvement was driven by top-line sales growth, partially offset by higher selling costs on increased top line sales and personnel costs related to stock-based compensation. Adjusted earnings before interest, taxes, depreciation, amortization, stock-based compensation, and non-recurring items ('adjusted EBITDA'), which is a non-GAAP financial measure, was $0.5 million, or $0.04 per diluted share, compared to ($0.8) million, or ($0.08) per diluted share, in the corresponding prior year period. For more details on non-GAAP financial measures, refer to the information in the non-GAAP financial measures section of this press release. Three Months Ended June 30, 2025 2024 $ % of Total $ % of Total Coffee creamers $ 6,770,922 56 % $ 4,696,979 47 % Coffee, tea, and hot chocolate products 3,599,037 30 % 2,503,529 25 % Hydration and beverage enhancing products 1,824,025 15 % 2,309,600 23 % Snacks and other food items 1,412,979 12 % 1,683,776 17 % Other 71,635 1 % 91,909 1 % Gross sales 13,678,598 114 % 11,285,793 113 % Shipping income 138,073 1 % 120,402 1 % Discounts and promotional activity (1,825,829 ) (15 )% (1,402,541 ) (14 )% Sales, net $ 11,990,842 100 % $ 10,003,654 100 % Expand Three Months Ended June 30, 2025 2024 $ % of Total $ % of Total E-commerce $ 6,237,344 52 % $ 6,098,327 61 % Wholesale 5,753,498 48 % 3,905,327 39 % Sales, net $ 11,990,842 100 % $ 10,003,654 100 % Expand Six Months Ended June 30, 2025 2024 $ % of Total $ % of Total Coffee creamers $ 13,483,574 57 % $ 10,267,299 52 % Coffee, tea, and hot chocolate products 6,819,928 29 % 4,678,794 23 % Hydration and beverage enhancing products 3,930,204 17 % 4,334,872 22 % Snacks and other food items 2,843,707 12 % 2,987,837 15 % Other 143,318 1 % 213,921 1 % Gross sales 27,220,731 116 % 22,482,723 113 % Shipping income 260,347 1 % 231,830 1 % Discounts and promotional activity (3,836,077 ) (16 )% (2,801,961 ) (14 )% Sales, net $ 23,645,001 101 % $ 19,912,592 100 % Expand Six Months Ended June 30, 2025 2024 $ % of Total $ % of Total E-commerce $ 12,450,460 53 % $ 11,966,664 60 % Wholesale 11,194,541 47 % 7,945,928 40 % Sales, net $ 23,645,001 100 % $ 19,912,592 100 % Expand Balance Sheet and Cash Flow Highlights We had $4.2 million of cash, cash equivalents, and restricted cash as of June 30, 2025, and no outstanding debt. Cash used in operating activities was $4.1 million for the six months ended June 30, 2025, compared to cash provided by operating activities of $0.2 million in the same period in 2024. The increase in cash used relative to the corresponding prior year period was driven by strategic investments to bolster our inventory to meet high demand for our products and to address the out-of-stocks experienced at the end of 2024 and in Q1 2025, as well as to forward purchase raw materials to mitigate anticipated tariff costs. We intend to normalize cash usage in the upcoming quarters as we convert inventory into cash. 2025 Outlook Management's strategy is to drive growth well in excess of the consumer goods and food industry averages: Management re-affirms full year Net Sales growth guidance in the range of 20% to 25%, driven by robust performance in our retail outlets and club stores, where consumer demand and velocity remain healthy. Gross Margin is re-affirmed to hold in the upper 30s, despite commodity inflation, tariffs, and other cost pressures. On a GAAP basis, we expect to report a full-year Net Loss. Breakeven adjusted EBITDA. Cash use of approximately $2 million for the full year to bolster inventory to support top line growth. Laird Superfood has not provided a reconciliation between its forecasted adjusted EBITDA and net loss, its most directly comparable GAAP measure, because applicable information for future periods, on which this reconciliation would be based, is not available without unreasonable effort due to the unavailability of reliable estimates for stock-based compensation, due to volatility in our stock price, and state and local income taxes, among other items. These items may vary greatly between periods and could significantly impact future financial results. Conference Call and Webcast Details We will host a conference call and webcast at 5:00 p.m. ET today to discuss our financial results. Participants may access the live webcast on the Laird Superfood Investor Relations website at under 'Events'. The webcast will be archived on the Company's website and will be available for replay for at least two weeks. About Laird Superfood Laird Superfood, Inc. creates award-winning, plant-based superfood products that are clean, delicious, and functional. Our products are designed to enhance a consumer's daily ritual and keep them fueled naturally throughout the day. Laird Superfood was co-founded in 2015 by the world's most prolific big-wave surfer, Laird Hamilton. Laird Superfood's offerings are environmentally conscientious, responsibly tested and made with real ingredients. Shop all products online at and join the Laird Superfood community on social media for the latest news and daily doses of inspiration. Forward-Looking Statements This press release and the conference call referencing this press release contain 'forward-looking' statements, as that term is defined under the federal securities laws, including but not limited to statements regarding Laird Superfood's anticipated cash runway, future financial performance, and growth. Such forward-looking statements may be identified by words such as "anticipates," "believes," "continues," "could," "estimates," "expects," "intends," "may," "outlook," "plans," "potential," predicts," "projects," "seeks," "should," "will," "would", or the antonyms of these terms or other comparable terminology. These forward-looking statements are based on Laird Superfood's current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause Laird Superfood's actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement. We expressly disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The risks and uncertainties referred to above include, but are not limited to: (1) the effects of global outbreaks of pandemics or contagious diseases or fear of such outbreaks, including on our supply chain, the demand for our products, and on overall economic conditions and consumer confidence and spending levels; (2) volatility regarding our revenue, expenses, including shipping expenses, and other operating results; (3) our ability to acquire new direct and wholesale customers and successfully retain existing customers; (4) our ability to attract and retain our suppliers, distributors and co-manufacturers, and effectively manage their costs and performance; (5) effects of real or perceived quality or health issues with our products or other issues that adversely affect our brand and reputation; (6) our ability to innovate on a timely and cost-effective basis, predict changes in consumer preferences and develop successful new products, or updates to existing products, and develop innovative marketing strategies; (7) adverse developments regarding prices and availability of raw materials and other inputs, a substantial amount of which come from a limited number of suppliers outside the United States, including in areas which may be adversely affected by climate change; (8) effects of changes in the tastes and preferences of our consumers and consumer preferences for natural and organic food products; (9) the financial condition of, and our relationships with, our suppliers, co-manufacturers, distributors, retailers and food service customers, as well as the health of the food service industry generally; (10) the ability of ourselves, our suppliers and co-manufacturers to comply with food safety, environmental or other laws or regulations; (11) our plans for future investments in our business, our anticipated capital expenditures and our estimates regarding our capital requirements, including our ability to continue as a going concern; (12) the costs and success of our marketing efforts, and our ability to promote our brand; (13) our reliance on our executive team and other key personnel and our ability to identify, recruit and retain skilled and general working personnel; (14) our ability to effectively manage our growth; (15) our ability to compete effectively with existing competitors and new market entrants; (16) the impact of adverse economic conditions; (17) the growth rates of the markets in which we compete, and (18) the other risks described in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings we make with the Securities and Exchange Commission. LAIRD SUPERFOOD, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Six Months Ended June 30, 2025 2024 Cash flows from operating activities Net loss $ (518,360 ) $ (1,255,598 ) Adjustments to reconcile net loss to net cash from operating activities: Depreciation and amortization 125,897 138,579 Stock-based compensation 996,986 533,273 Provision for inventory obsolescence 401,938 187,901 Other operating activities, net 58,296 103,034 Changes in operating assets and liabilities: Accounts receivable (1,000,807 ) (173,219 ) Inventory (5,453,877 ) (263,719 ) Prepaid expenses and other current assets 460,631 149,152 Operating lease liability (52,984 ) (64,812 ) Accounts payable 588,835 294,590 Accrued expenses 268,079 544,754 Related party liabilities 23,000 26,479 Net cash from operating activities (4,102,366 ) 220,414 Cash flows from investing activities (80,638 ) (13,462 ) Cash flows from financing activities (146,373 ) (86,066 ) Net change in cash and cash equivalents (4,329,377 ) 120,886 Cash, cash equivalents, and restricted cash, beginning of period 8,514,152 7,706,806 Cash, cash equivalents, and restricted cash, end of period $ 4,184,775 $ 7,827,692 Supplemental disclosures of non-cash financing activities Taxes withheld to cover net issuances of incentive stock awards included in accrued expenses $ 155,178 $ — Expand LAIRD SUPERFOOD, INC. CONSOLIDATED BALANCE SHEETS (unaudited) As of June 30, 2025 December 31, 2024 Assets Current assets Cash, cash equivalents, and restricted cash $ 4,184,775 $ 8,514,152 Accounts receivable, net 2,751,541 1,762,911 Inventory 11,027,615 5,975,676 Prepaid expenses and other current assets 1,253,258 1,713,889 Total current assets 19,217,189 17,966,628 Noncurrent assets Property and equipment, net 93,233 58,447 Intangible assets, net 816,078 896,123 Related party license agreements 132,100 132,100 Right-of-use assets 168,136 205,703 Total noncurrent assets 1,209,547 1,292,373 Total assets $ 20,426,736 $ 19,259,001 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 2,726,595 $ 2,137,760 Accrued expenses 4,066,255 3,642,998 Related party liabilities 57,947 34,947 Lease liabilities, current portion 107,555 105,966 Total current liabilities 6,958,352 5,921,671 Lease liabilities 94,443 140,464 Total liabilities 7,052,795 6,062,135 Stockholders' equity Common stock, $0.001 par value, 100,000,000 shares authorized at June 30, 2025 and December 31, 2024; 11,020,792 and 10,644,461 issued and outstanding at June 30, 2025, respectively; and 10,668,705 and 10,292,374 issued and outstanding at December 31, 2024, respectively. 10,644 10,292 Additional paid-in capital 121,999,967 121,304,884 Accumulated deficit (108,636,670 ) (108,118,310 ) Total stockholders' equity 13,373,941 13,196,866 Total liabilities and stockholders' equity $ 20,426,736 $ Expand LAIRD SUPERFOOD, INC. NON-GAAP FINANCIAL MEASURES (unaudited) In this press release, we report Adjusted EBITDA and Adjusted EBITDA per diluted share, which are financial measures not required by, or presented in accordance with, accounting principles generally accepted in the United States of America ('GAAP'). The Company's management uses non-GAAP financial measures, both internally and externally, to assess and communicate the financial performance of the Company. The Company defines Adjusted EBITDA as net income (loss), adjusted to exclude: (1) interest expense and other (income) loss, (2) income tax (benefit) expense, (3) depreciation and amortization expenses, (4) stock-based compensation, and (5) expenses and recoveries related to a product quality issue. The Company believes Adjusted EBITDA is useful to investors because it facilitates comparisons of its core business operations, excluding non-cash costs and non-recurring events, across periods on a consistent basis. Management uses Adjusted EBITDA internally in analyzing the Company's financial results to assess operational performance and to determine the Company's future capital requirements. The presentation of this financial information is not intended to be considered in isolation or as a substitute for the financial information prepared in accordance with GAAP. The Company believes that both management and investors benefit from referring to Adjusted EBITDA in assessing its performance and when planning, forecasting and analyzing future periods. The Company believes Adjusted EBITDA is useful to investors and others to understand and evaluate the Company's operating results and it allows for a more meaningful comparison between the Company's performance and that of competitors. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this performance measure in isolation from or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are that Adjusted EBITDA does not reflect, among other things: cash capital expenditures for assets underlying depreciation and amortization expense that may need to be replaced or for new capital expenditures; interest expense; income tax expense from continuing operations; our working capital requirements; the potentially dilutive impact of stock-based compensation; and the provision for income taxes. Other companies, including companies in our industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure. Because of these limitations, you should consider Adjusted EBITDA along with other financial performance measures, including Net Sales, net loss, cash and cash equivalents, restricted cash, net cash used in operating activities and our financial results presented in accordance with GAAP. The following table presents a reconciliation of net income (loss), the most directly comparable financial measure stated in accordance with GAAP, to adjusted EBITDA, for each of the periods presented: (a) In January 2023, we identified a product quality issue with raw material from one vendor and we voluntarily withdrew any affected finished goods. We previously incurred costs associated with product testing, discounts for replacement orders, and inventory obsolescence costs. We reached settlement with a supplier in the third quarter of 2023 and recorded recoveries in 2024. Expand
Business Wire
25 minutes ago
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CareDx Announces Appointment of Nathan Smith as Chief Financial Officer
BRISBANE, Calif.--(BUSINESS WIRE)--CareDx, Inc. (Nasdaq: CDNA), — The Transplant Company™ — a leading precision medicine company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers, today announced the appointment of Nathan Smith to the role of Chief Financial Officer. Nathan will lead key financial and accounting initiatives that are a part of the Company's long-term strategic growth plan. Nathan brings more than 14 years of experience in the molecular diagnostics industry, including senior finance leadership roles at Myriad Genetics and recent CFO positions at Blackrock Neurotech and WIN Brands. 'Nathan's deep financial expertise in molecular diagnostics is a great fit for CareDx,' said John Hanna, CEO of CareDx. 'His track record of operational excellence and experience in supporting diagnostics companies to scale efficiently will be invaluable as we enter our next phase.' In conjunction with this appointment, the Company also announced that Abhishek Jain will be retiring from his role as Chief Financial Officer. Abhishek will continue to support CareDx in a consulting capacity to ensure a seamless transition. 'On behalf of the Board and the entire CareDx team, I want to express my sincere gratitude to Abhishek for his outstanding leadership as CFO,' said John Hanna. 'Abhishek's disciplined financial management, stewardship through our CEO transition, and dedication to strengthening our finance function have positioned CareDx for continued success. We wish him all the best.' About CareDx CareDx, Inc., headquartered in Brisbane, California, is a precision medicine company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers. For more information, visit Forward Looking Statements This press release includes forward-looking statements related to CareDx, Inc. These forward-looking statements are based upon information that is currently available to CareDx and its current expectations, speak only as of the date hereof, and are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including general economic and market factors and other risks discussed in CareDx's filings with the SEC, including, but not limited to, the Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed by CareDx with the SEC on February 28, 2025, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 filed by CareDx with the SEC on April 30, 2025, and other reports that CareDx has filed with the SEC. Any of these may cause CareDx's actual results, performance, or achievements to differ materially and adversely from those anticipated or implied by CareDx's forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. CareDx expressly disclaims any obligation, except as required by law, or undertaking to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.
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Kodiak Gas Services Reports Second Quarter 2025 Financial Results, Announces $100 Million Increase to Share Repurchase Program and Provides Updated Full Year 2025 Guidance
THE WOODLANDS, Texas--(BUSINESS WIRE)--Kodiak Gas Services, Inc. (NYSE: KGS) ('Kodiak' or the 'Company'), a leading provider of critical energy infrastructure and contract compression services, today reported financial and operating results for the quarter ended June 30, 2025. The Company also announced that its Board of Directors has approved a $100 million increase to its share repurchase program, and increased full-year 2025 guidance for adjusted EBITDA and discretionary cash flow. Net income attributable to common shareholders for the quarter ended June 30, 2025 was $39.5 million, compared to $30.4 million and $6.2 million for the quarters ended March 31, 2025, and June 30, 2024, respectively. Second Quarter 2025 and Recent Highlights Record earnings per share attributable to common shareholders of $0.43 per diluted share Record quarterly adjusted EBITDA (1) of $178.2 million, a 15.5% increase compared to second quarter 2024 Contract Services adjusted gross margin percentage (1) increased to 68.3%, a 430 basis point increase compared to second quarter 2024 Generated record quarterly free cash flow (1) of $70.3 million Returned over $50 million to stockholders through dividends and share repurchases Deployed 31,800 horsepower of new, large horsepower compression units Fleet utilization increased to 97.2%, a 290 basis point increase compared to second quarter 2024 Added to the S&P SmallCap 600 index effective August 6, 2025 Revised 2025 Outlook Highlights Raised full-year 2025 adjusted EBITDA guidance to a range of $700 to $725 million, a $5 million increase to the low end of the range Increased full-year 2025 discretionary cash flow (1) guidance to a range of $445 to $465 million (1) Adjusted EBITDA, adjusted gross margin percentage, free cash flow and discretionary cash flow are non-GAAP financial measures. Definitions and reconciliations to the most comparable GAAP financial measure are included herein. Expand "Kodiak's performance in the second quarter reflects our commitment to operational excellence and the strong fundamentals for contract gas compression,' said Mickey McKee, Kodiak's President and Chief Executive Officer. 'Our fourth consecutive quarterly increase in Contract Services adjusted gross margin percentage and our record quarterly adjusted EBITDA are the product of our strategic focus on large horsepower compression, fleet optimization and significant investments in both technology and our people. This approach not only strengthens our market position but also ensures we continue to meet the evolving needs of our customers with reliability and efficiency. 'Despite the challenges posed by global economic instabilities and energy market dynamics, our production-focused business model remains robust. The resilience of our operations is evident in our ability to maintain high fleet utilization and increase margins. As we look ahead, the highly visible Permian Basin natural gas production growth combined with the strong demand outlook driven by power demand for data centers and domestic LNG projects, reinforce our confidence in the long-term growth prospects for contract compression. "The meaningful increase in our share repurchase program reflects that confidence and underscores Kodiak's commitment to returning capital to shareholders. Our focus remains on delivering superior service and maintaining one of the safest and most reliable compression fleets in the industry. Kodiak is well-positioned to capitalize on future opportunities, continue to drive profitable growth and increase shareholder value." Segment Information Contract Services segment revenue was $293.5 million in the second quarter of 2025, a 6.3% increase compared to $276.3 million in the second quarter of 2024. Contract Services segment gross margin was $134.3 million in the second quarter of 2025, a 24.9% increase compared to $107.5 million in the second quarter of 2024 and adjusted gross margin was $200.4 million in the second quarter of 2025, a 13.3% increase compared to $176.9 million in the second quarter of 2024. Other Services segment revenue was $29.3 million in the second quarter of 2025, a 12.3% decrease compared to $33.4 million in the second quarter of 2024. Other Services segment gross margin and adjusted gross margin were each $7.2 million in the second quarter of 2025, a 31.6% increase compared to $5.5 million in the second quarter of 2024. Long-Term Debt and Liquidity During the second quarter 2025, the Company reduced debt outstanding by approximately $48 million. Total debt outstanding was $2.6 billion as of June 30, 2025, comprised primarily of borrowings on the ABL Facility and senior notes due 2029. At June 30, 2025, the Company had $366.4 million available on its ABL Facility, and Kodiak's credit agreement leverage ratio was 3.6x. S&P SmallCap 600 S&P Dow Jones Indices announced on August 1, 2025 that Kodiak would join the S&P SmallCap 600 index effective prior to the opening of trading on Wednesday, August 6, 2025. The Company's addition represents a significant milestone and affirms its financial strength and commitment to profitable growth. For more information about S&P Dow Jones Indices, please visit Share Repurchase Program The Company's Board of Directors approved a $100 million increase to the Company's share repurchase program and extended the program's expiration date to December 31, 2026. Including the increased repurchase authorization announced today, the Company has $115.0 million available for repurchases under its share repurchase program. Repurchases under the share repurchase program may be made from time to time through open market repurchases or through privately negotiated transactions subject to market conditions, applicable legal requirements, and other relevant factors. To date, the Company has repurchased approximately 2.0 million shares for an aggregate amount of $60.0 million (at a weighted average price of $30.24). (1) Adjusted EBITDA, adjusted EBITDA percentage, adjusted gross margin, adjusted gross margin percentage, discretionary cash flow and free cash flow are non-GAAP financial measures. For definitions and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP, see 'Non-GAAP Financial Measures' below. (2) Growth capital expenditures made to (1) expand the operating capacity or operating income capacity of assets including, but not limited to, the acquisition of additional compression units, upgrades to existing equipment, expansion of supporting infrastructure, and implementation of new technologies, (2) maintain the operating capacity or operating income capacity of assets by acquisition of replacement compression units and their supporting infrastructure, and (3) expand the operating capacity or operating income capacity of existing assets. (3) Other capital expenditures made on assets required to support our operations—such as rolling stock, leasehold improvements, technology hardware and software and related implementation expenditures, safety enhancements to equipment, and other general items that are typically capitalized and that have a useful life beyond one year. Other capital expenditures were previously included in growth capital expenditures, but are now shown separately for both current and historical periods. Expand (1) Fleet horsepower includes (x) revenue-generating horsepower and (y) idle horsepower, which is comprised of compression units that do not have a signed contract or are not subject to a firm commitment from our customer and therefore are not currently generating revenue. (2) Revenue-generating horsepower includes compression units that are operating under contract and generating revenue and compression units which are available to be deployed and for which we have a signed contract or are subject to a firm commitment from our customer. (3) Calculated as (i) revenue-generating horsepower divided by (ii) revenue-generating compression units at period end. (4) Fleet utilization is calculated as (i) revenue-generating horsepower divided by (ii) fleet horsepower. Expand (1) The Company is unable to reconcile projected adjusted EBITDA to projected net income (loss) and discretionary cash flow to projected net cash provided by operating activities and projected adjusted gross margin percentage to projected gross margin percentage, the most comparable financial measures calculated in accordance with GAAP, respectively, without unreasonable efforts because components of the calculations are inherently unpredictable, such as changes to current assets and liabilities, unknown future events, and estimating certain future GAAP measures. The inability to project certain components of the calculation would significantly affect the accuracy of the reconciliations. (2) Discretionary cash flow guidance assumes no change to Secured Overnight Financing Rate futures. Expand Conference Call Kodiak will conduct a conference call on Thursday, August 7, 2025, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time) to discuss financial and operating results for the quarter ended June 30, 2025. To listen to the call by phone, dial 877-407-4012 and ask for the Kodiak Gas Services call at least 10 minutes prior to the start time. To listen to the call via webcast, please visit the Investors tab of Kodiak's website at About Kodiak Kodiak is a leading contract compression services provider in the United States, serving as a critical link in the infrastructure that enables the safe and reliable production and transportation of natural gas and oil. Headquartered in The Woodlands, Texas, Kodiak provides contract compression and related services to oil and gas producers and midstream customers in high–volume gas gathering systems, processing facilities, multi-well gas lift applications and natural gas transmission systems. More information is available at Non-GAAP Financial Measures Adjusted EBITDA is defined as net income (loss) before interest expense; income tax expense; and depreciation and amortization; plus (i) loss on extinguishment of debt; (ii) loss (gain) on derivatives; (iii) equity compensation expense; (iv) severance expenses; (v) transaction expenses; (vi) loss (gain) on sale of assets; and (vii) impairment of compression equipment. Adjusted EBITDA percentage is defined as adjusted EBITDA divided by total revenues. Adjusted EBITDA and adjusted EBITDA percentage are used as supplemental financial measures by our management and external users of our financial statements, such as investors, commercial banks and other financial institutions, to assess: (i) the financial performance of our assets without regard to the impact of financing methods, capital structure or historical cost basis of our assets; (ii) the viability of capital expenditure projects and the overall rates of return on alternative investment opportunities; (iii) the ability of our assets to generate cash sufficient to make debt payments and pay dividends; and (iv) our operating performance as compared to those of other companies in our industry without regard to the impact of financing methods and capital structure. We believe adjusted EBITDA and adjusted EBITDA percentage provide useful information because, when viewed with our GAAP results and the accompanying reconciliation, they provide a more complete understanding of our performance than GAAP results alone. We also believe that external users of our financial statements benefit from having access to the same financial measures that management uses in evaluating the results of our business. Reconciliations of adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, and net cash provided by operating activities are presented below. Adjusted gross margin is defined as revenue less cost of operations, exclusive of depreciation and amortization expense. Adjusted gross margin percentage is defined as adjusted gross margin divided by total revenues. We believe adjusted gross margin and adjusted gross margin percentage are useful as supplemental measures to investors of our operating profitability. Reconciliations of adjusted gross margin to gross margin are presented below. Discretionary cash flow is defined as net cash provided by operating activities less (i) maintenance capital expenditures; (ii) certain changes in operating assets and liabilities; and (iii) certain other expenses; plus (w) cash loss on extinguishment of debt; (x) severance expenses; and (y) transaction expenses. We believe discretionary cash flow is a useful liquidity and performance measure and supplemental financial measure for us in assessing our ability to pay cash dividends to our stockholders, make growth capital expenditures and assess our operating performance. A reconciliation of discretionary cash flow to net cash provided by operating activities is presented below. Free cash flow is defined as net cash provided by operating activities less (i) maintenance capital expenditures; (ii) certain changes in operating assets and liabilities; (iii) certain other expenses; and (iv) growth and other capital expenditures; plus (w) cash loss on extinguishment of debt; (x) severance expenses; (y) transaction expenses; and (z) proceeds from sale of assets. We believe free cash flow is a liquidity measure and useful supplemental financial measure for us in assessing our ability to pursue business opportunities and investments to grow our business and to service our debt. A reconciliation of free cash flow to net cash provided by operating activities is presented below. Cautionary Note Regarding Forward-Looking Statements This news release contains, and our officers and representatives may from time to time make, 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Forward-looking statements can be identified by words such as: 'anticipate,' 'intend,' 'plan,' 'goal,' 'seek,' 'believe,' 'project,' 'estimate,' 'expect,' 'strategy,' 'future,' 'likely,' 'may,' 'should,' 'will' and similar references to future periods. Examples of forward-looking statements include, among others, statements we make regarding: (i) expected operating results, such as revenue growth and earnings, including upon the continued integration of CSI Compressco LP ('CSI Compressco') into our operations, and our ability to service our indebtedness; (ii) anticipated levels of capital expenditures and uses of capital; (iii) current or future volatility in the credit markets and future market conditions; (iv) potential or pending acquisition transactions or other strategic transactions, the timing thereof, the receipt of necessary approvals to close such acquisitions, our ability to finance such acquisitions, and our ability to achieve the intended operational, financial, and strategic benefits from any such transactions; (v) expectations of the effect on our financial condition of claims, litigation, environmental costs, contingent liabilities and governmental and regulatory investigations and proceedings; (vi) production and capacity forecasts for the natural gas and oil industry; (vii) strategy for customer retention, growth, fleet maintenance, market position and financial results; (viii) our interest rate hedges; and (ix) strategy for risk management. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) a reduction in the demand for natural gas and oil and/or a decrease in natural gas and oil prices; (ii) the loss of, or the deterioration of the financial condition of, any of our key customers; (iii) nonpayment and nonperformance by our customers, suppliers or vendors; (iv) competitive pressures that may cause us to lose market share; (v) the structure of our Contract Services contracts and the failure of our customers to continue to contract for services after expiration of the primary term; (vi) our ability to successfully integrate any acquired businesses, including CSI Compressco, and realize the expected benefits thereof in the expected timeframe or at all; (vii) our ability to fund purchases of additional compression equipment; (viii) our ability to successfully implement our share repurchase program; (ix) a deterioration in general economic, business, geopolitical or industry conditions, including as a result of the conflict between Russia and Ukraine, the Israel-Hamas war, and the hostilities in the Middle East, inflation, and slow economic growth in the United States; (x) a downturn in the economic environment, as well as continued inflationary pressures; (xi) international operations and related mobilization and demobilization of compression units, operational interruptions, delays, upgrades, refurbishment and repair of compression assets and any related delays and costs overruns or reduced payment of contracted rates; (xii) our ability to successfully manage our international operations and comply with any applicable laws and regulations, including risks associated with doing business in foreign countries, and our ability to comply with the U.S. Foreign Corrupt Practices Act ('FCPA') or other anti-corruption laws; (xiii) the outcome of any pending internal review or any future related government enforcement actions; (xiv) tax legislation and the impact of changes to applicable tax laws, including the passage of the One Big Beautiful Bill Act, and administrative initiatives or challenges to our tax positions; (xv) the loss of key management, operational personnel or qualified technical personnel; (xvi) our dependence on a limited number of suppliers; (xvii) the cost of compliance with existing and new governmental regulations, as well as the associated uncertainty given the new U.S. federal government administration; (xviii) changes in trade policies and regulations, including increases or changes in duties, current and potentially new tariffs and other actions; (xix) the cost of compliance with regulatory initiatives and stakeholders' pressures, including sustainability and corporate responsibility; (xx) the inherent risks associated with our operations, such as equipment defects and malfunctions; (xxi) our reliance on third-party components for use in our IT systems; (xxii) legal and reputational risks and expenses relating to the privacy, use and security of employee and client information; (xxiii) threats of cyber-attacks or terrorism; (xxiv) agreements that govern our debt contain features that may limit our ability to operate our business and fund future growth and also increase our exposure to risk during adverse economic conditions; (xxv) volatile and/or elevated interest rates and associated central bank policy actions; (xxvi) our ability to access the capital and credit markets or borrow on affordable terms (or at all) to obtain additional capital that we may require; (xxvii) major natural disasters, severe weather events or other similar events that could disrupt operations; (xxviii) unionization of our labor force, labor interruptions and new or amended labor regulations; (xxix) renewal of insurance; (xxx) the effectiveness of our disclosure controls and procedures; and (xxxi) such other factors as discussed throughout the 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' sections and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the U.S. Securities and Exchange Commission.('SEC') on March 7, 2025, as may be updated by subsequent filings under the Securities Exchange Act of 1934, as amended, including Forms 10-Q and 8-K, each of which can be obtained free of charge on the SEC's website at Any forward-looking statement made by us in this news release is based only on information currently available to us and speaks only as of the date on which it is made. Except as may be required by applicable law, we undertake no obligation to publicly update any forward-looking statement whether as a result of new information, future developments or otherwise. KODIAK GAS SERVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands) June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 5,428 $ 4,750 Accounts receivable, net 224,656 253,637 Inventories, net 101,004 103,341 Fair value of derivative instruments — 3,672 Contract assets 5,274 7,575 Prepaid expenses and other current assets 9,163 10,686 Total current assets 345,525 383,661 Property, plant and equipment, net 3,392,339 3,395,022 Operating lease right-of-use assets, net 47,866 53,754 Finance lease right-of-use assets, net 7,574 5,696 Goodwill 415,213 415,213 Identifiable intangible assets, net 158,999 162,747 Fair value of derivative instruments 6,978 17,544 Other assets 1,433 1,486 Total assets $ 4,375,927 $ 4,435,123 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 50,385 $ 57,562 Accrued liabilities 178,541 188,732 Contract liabilities 84,392 73,075 Total current liabilities 313,318 319,369 Long-term debt, net of unamortized debt issuance cost 2,545,019 2,581,909 Operating lease liabilities 43,735 49,748 Finance lease liabilities 5,394 3,514 Deferred tax liabilities 118,087 103,826 Other liabilities 1,908 3,150 Total liabilities $ 3,027,461 $ 3,061,516 Stockholders' equity: Preferred stock 8 9 Common stock 895 892 Additional paid-in capital 1,317,475 1,305,375 Treasury stock, at cost (59,956 ) (40,000 ) Noncontrolling interest 12,347 13,694 Accumulated other comprehensive loss (8,316 ) — Retained earnings 86,013 93,637 Total stockholders' equity 1,348,466 1,373,607 Total liabilities and stockholders' equity $ 4,375,927 $ 4,435,123 Expand KODIAK GAS SERVICES, INC. (UNAUDITED) Six Months Ended June 30, (in thousands) 2025 2024 Cash flows from operating activities: Net income $ 71,020 $ 36,945 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 136,664 116,407 Equity compensation expense 13,269 8,159 Amortization of debt issuance costs 6,267 4,946 Non-cash lease expense 6,265 1,648 Provision for credit losses 995 4,589 Inventory reserve 123 476 Loss (gain) on sale of assets 15,817 (1,173 ) Change in fair value of derivatives — (14,293 ) Amortization of interest rate swap 4,147 — Deferred tax provision 17,134 7,104 Changes in operating assets and liabilities, exclusive of effects of business acquisition: Accounts receivable 27,986 (45,933 ) Inventories 2,214 (3,147 ) Contract assets 2,301 12,000 Prepaid expenses and other current assets 1,380 4,671 Accounts payable (13,162 ) 21,983 Accrued and other liabilities (13,334 ) 11,871 Contract liabilities 11,317 6,308 Other assets 1,097 63 Net cash provided by operating activities 291,500 172,624 Cash flows from investing activities: Net cash acquired in acquisition of CSI Compressco LP — 9,458 Purchase of property, plant and equipment (160,171 ) (177,186 ) Proceeds from sale of assets 17,606 411 Other — (35 ) Net cash used for investing activities (142,565 ) (167,352 ) Cash flows from financing activities: Borrowings on debt instruments 686,921 1,945,775 Payments on debt instruments (730,078 ) (1,867,851 ) Principal payments on other borrowings (3,455 ) (1,843 ) Payment of debt issuance cost — (16,346 ) Principal payments on finance leases (1,540 ) (408 ) Offering costs — (1,162 ) Dividends paid to stockholders (76,593 ) (62,393 ) Repurchase of common shares (19,956 ) — Cash paid for shares withheld to cover taxes (3,286 ) (294 ) Net effect on deferred taxes and taxes payable related to the vesting of restricted stock 424 — Distributions to noncontrolling interest (694 ) (2,460 ) Net cash used for financing activities (148,257 ) (6,982 ) Net increase (decrease) in cash and cash equivalents 678 (1,710 ) Cash and cash equivalents - beginning of period 4,750 5,562 Cash and cash equivalents - end of period $ 5,428 $ 3,852 Expand Three Months Ended (in thousands, excluding percentages) June 30, 2025 March 31, 2025 June 30, 2024 Net income $ 39,984 $ 31,036 $ 6,713 Interest expense 45,755 47,224 52,133 Income tax expense 13,445 10,524 2,336 Depreciation and amortization 66,135 70,529 69,463 Gain on derivatives — — (6,797 ) Equity compensation expense 6,291 6,978 5,311 Severance expense (1) — 376 8,969 Transaction expenses (2) — 1,786 17,387 Loss (gain) on sale of assets 6,606 9,211 (1,173 ) Adjusted EBITDA $ 178,216 $ 177,664 $ 154,342 Net income percentage 12.4 % 9.4 % 2.2 % Adjusted EBITDA percentage 55.2 % 53.9 % 49.8 % Expand (1) Represents severance expense related to the CSI Acquisition. (2) Represents certain costs associated with non-recurring professional services and other costs, primarily related to the CSI Acquisition and secondary offerings. Expand Contract Services Three Months Ended (in thousands, excluding percentages) June 30, 2025 March 31, 2025 June 30, 2024 Total revenues $ 293,534 $ 288,956 $ 276,250 Cost of operations (excluding depreciation and amortization) (93,137 ) (93,235 ) (99,333 ) Depreciation and amortization (66,135 ) (70,529 ) (69,463 ) Gross margin $ 134,262 $ 125,192 $ 107,454 Gross margin percentage 45.7 % 43.3 % 38.9 % Depreciation and amortization 66,135 70,529 69,463 Adjusted gross margin $ 200,397 $ 195,721 $ 176,917 Adjusted gross margin percentage 68.3 % 67.7 % 64.0 % Expand Other Services Three Months Ended (in thousands, excluding percentages) June 30, 2025 March 31, 2025 June 30, 2024 Total revenues $ 29,309 $ 40,686 $ 33,403 Cost of operations (excluding depreciation and amortization) (22,114 ) (35,226 ) (27,936 ) Depreciation and amortization — — — Gross margin $ 7,195 $ 5,460 $ 5,467 Gross margin percentage 24.5 % 13.4 % 16.4 % Depreciation and amortization — — — Adjusted gross margin $ 7,195 $ 5,460 $ 5,467 Adjusted gross margin percentage 24.5 % 13.4 % 16.4 % Expand KODIAK GAS SERVICES, INC. (UNAUDITED) Three Months Ended (in thousands) June 30, 2025 March 31, 2025 June 30, 2024 Net cash provided by operating activities $ 177,172 $ 114,328 $ 121,082 Maintenance capital expenditures (17,565 ) (16,407 ) (19,147 ) Severance expense (1) — 376 8,969 Transaction expenses (2) — 1,786 17,387 Change in operating assets and liabilities (38,478 ) 18,679 (32,372 ) Other (3) (4,705 ) (2,678 ) (5,302 ) Discretionary cash flow $ 116,424 $ 116,084 $ 90,617 Growth capital expenditures (4)(5) (37,966 ) (55,983 ) (77,257 ) Other capital expenditures (4) (16,398 ) (22,258 ) (13,133 ) Proceeds from sale of assets 8,230 9,376 411 Free cash flow $ 70,290 $ 47,219 $ 638 Expand (1) Represents severance expense related to the CSI Acquisition. (2) Represents certain costs associated with non-recurring professional services and other costs, primarily related to the CSI Acquisition and secondary offerings. (3) Includes non-cash lease expense, provision for credit losses and inventory reserve. (4) For the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, growth and other capital expenditures includes a $10.7 million decrease, a $14.1 million increase and a $12.6 million decrease in accrued capital expenditures, respectively. (5) For the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, growth capital expenditures includes a $0.3 million decrease, a $1.2 million increase and a $19.8 million increase, in a non-cash sales tax accrual on compression equipment purchases, respectively. These accrual amounts are estimated based on the best-known information as it relates to open audit periods with the State of Texas. Expand
