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Globe and Mail
19 hours ago
- Business
- Globe and Mail
ChargePoint (CHPT) Q1 2026 Earnings Transcript
DATE Wednesday, June 4, 2025 at 4:30 p.m. ET CALL PARTICIPANTS Chief Executive Officer — Rick Wilmer Chief Financial Officer — Mansi Khetani Need a quote from one of our analysts? Email pr@ TAKEAWAYS Total Revenue: $98 million for Q1 FY2026, in line with company guidance. Non-GAAP Gross Margin: 31%, a non-GAAP improvement of one percentage point sequentially and seven percentage points year over year (non-GAAP). SaaS Subscription Gross Margin: Achieved a record 60% on a GAAP basis. Adjusted EBITDA Loss: $23 million non-GAAP adjusted EBITDA loss, compared with a $17 million loss in the prior quarter and a $36 million loss in the first quarter of last year. Network Charging Systems Revenue: $52 million, representing 53% of total revenue, almost flat sequentially despite Q1 typically experiencing a seasonal dip and down 20% year on year. Subscription Revenue: $38 million in subscription revenue, or 39% of total revenue, essentially flat sequentially and up 14% year on year. Other Revenue: $8 million, or 8% of total revenue, down 31% sequentially and down 8% year on year, mainly due to lower one-time project revenue. Geographic Mix: North America represented 85% of revenue, and Europe was 15%, with European revenue down mainly due to weakness in Germany. Billings Mix by Vertical: Commercial 71%, fleet 13%, residential 12%, and other 3%. Inventory: Inventory balance increased by $3 million due to FX impacts, but inventory units decreased across most products as sell-through continued. Ending Cash Balance: $196 million in cash on hand, with access to a $150 million undrawn revolving credit facility. Charging Ports Under Management: Over 352,000 total under management, including more than 35,000 DC fast chargers and over 122,000 ports in Europe. Roaming Partnerships: Enabled access to more than 1.25 million charging ports globally. New Product Announcements: Introduction of a theft-resistant charging cable and a new AC hardware architecture, with the latter targeting lower cost and improved margins. Eaton Partnership: Announced collaboration with Eaton to deliver integrated EV charging and power management solutions, with initial co-developed products set for announcement in September. Q2 Revenue Guidance: Expected revenue in the range of $90 million to $100 million. Operational Focus: Continued emphasis on gross margin expansion, cost management, and achieving adjusted EBITDA positivity in a quarter during FY2026. SUMMARY ChargePoint Holdings, Inc. (NYSE:CHPT) reported first-quarter revenue that matched internal expectations, highlighting stable top-line performance despite ongoing macroeconomic and policy headwinds. Management stated that new integrated solutions from the Eaton partnership are now available for order, and further product innovations are scheduled for announcement in September, aiming to bolster incremental revenue growth and differentiation. The company confirmed that new AC hardware will launch at a competitive price to support both US and European expansion, with rollout of the new architecture planned over the next year and the first model targeted for production in July. Wilmer said, "We still expect non-GAAP margin improvement later in FY2026." emphasizing that anticipated US tariffs will have only a minimal cost impact due to effective mitigation actions. Management highlighted US and European EV sales grew 16% and 22%, respectively, in Q1, positioning infrastructure utilization as a positive demand signal for future industry expansion. Wilmer stated that voluntary industry exits and increased regulatory scrutiny on competitors create "a meaningful opportunity for ChargePoint Holdings, Inc. to gain market share." Khetani remarked that "inventory balance will reduce gradually throughout the year, helping to free up cash." A more significant decrease is anticipated in the second half as revenue increases. INDUSTRY GLOSSARY CPO: Charge Point Operator, an entity responsible for managing and maintaining EV charging infrastructure. V2X: Vehicle-to-Everything, a technology enabling electric vehicles to exchange power or information with the grid, buildings, and other systems. AC Hardware Architecture: Alternating Current charging system design, indicating the product and platform structure for AC chargers as opposed to Direct Current (DC) fast chargers. ATM: At-the-Market offering, a program allowing companies to sell shares into the open market over time. Full Conference Call Transcript Rick Wilmer: Good afternoon, and welcome to ChargePoint Holdings, Inc.'s first quarter fiscal 2026 earnings call. Today, I will walk you through key results for the quarter, provide insights into recent market and policy developments, and highlight the progress we have made on our two major priorities for the year: delivering innovation and driving growth. In addition, I will cover two significant announcements that directly support these priorities and positively influence ChargePoint Holdings, Inc.'s path to achieving positive non-GAAP adjusted EBITDA in a quarter of this fiscal year. Let's begin with our Q1 financial results. Revenue for the first quarter came in at $98 million, right within our guidance range. Non-GAAP gross margin continues to increase quarter over quarter, reaching a new high of 31%. Notably, our SaaS subscription gross margin climbed to a record 60%, underscoring the strength of our SaaS-focused business model. We built momentum across the business in Q1. Our DC fast charging program with General Motors has been a success, with the pace of site openings accelerating and over 500 additional ports signed off by GM for deployment. We extended multiple agreements with Mercedes-Benz, reinforcing our long-term relationship. Our theft-resistant charging cable was met with strong market interest and will go into production this summer for our own hardware models. Deenergized, our software management solution for CPOs, is now actively managing over 700 charger models from over 85 different vendors of charging hardware. This is a testimonial to the scale of our third-party hardware integrations. In total, ChargePoint Holdings, Inc. now has over 352,000 ports under management, of which more than 35,000 are DC fast chargers, and more than 122,000 are located in Europe. With our roaming partnerships, we enable access to more than 1.25 million charging ports globally. Our business is proving to be resilient on the top line despite US macroeconomic conditions and market uncertainty, as well as the bottom line through the cost and operational actions we took last year. Looking ahead regarding US tariffs on our products, expect only a minimal increase in the cost of goods sold. Also, expect cost reductions to exceed the impact of the current tariffs. Therefore, we still expect margin improvement later in the year. The limited impact reflects the swift and effective execution of our mitigation plan. We see positive momentum on two fronts: one, EV adoption, and two, utilization rates. EV adoption continues on a steady upward trajectory, a trend which has held for more than a year. Despite political turbulence dampening consumer and capital spending, North American EV sales were up 16% year over year for Q1 according to Rimotion. In Europe, EV momentum rebounded strongly with the same data set reporting 22% EV sales growth year over year for Q1, a significant surge. The European Green Deal mandates all new cars sold there be zero emission by 2035, reinforcing the EU's trajectory of EV adoption. All of this forms a strong leading indicator for the charging industry. The trends we observed last quarter remain intact. The market is actively planning and inquiring, but widespread purchasing is being impacted by economic uncertainty. Inevitably, with more EVs on the road, existing infrastructure is under mounting pressure. A recent report by Perin Data concluded that many US cities are approaching maximum charge utilization during peak hours, with five major markets past or approaching a staggering 40% utilization rate. This strain is a positive signal for our customers who monetize charging, but it is a growing concern for EV drivers facing long waits at occupied stations. We believe this will lead to the installation of more chargers, and ChargePoint Holdings, Inc. will be ready to capitalize on that demand. Despite the growth to come, the market has recently seen attrition and the voluntary exit of major players, even Chinese competitors coming under the scrutiny of the federal government. These developments, while natural for a new industry at our stage, create a meaningful opportunity for ChargePoint Holdings, Inc. to gain market share. We are not waiting for the growth to come to us; we are actively pursuing it. This brings me to the most exciting announcement of the year so far: our new partnership with Eaton, one of the world's largest intelligent power management companies. The cornerstone of this partnership is innovation, which will drive growth. Our goal is to make electrified transportation simple and economically a no-brainer. Charging deployments are increasingly complex, with a significant portion of them requiring grid upgrades. So we are integrating charging and electrical equipment into a single solution which addresses a major gap in the market. Together, ChargePoint Holdings, Inc. and Eaton will deliver EV charging, electrical infrastructure, energy management, and engineering services as the market's only end-to-end EV charging and power management solutions. These fully integrated solutions will get our customers up and running faster, simultaneously lowering their costs, and are available for order now. The next phase of the partnership will offer co-developed future technologies to further drive down costs, improve efficiency, and advance bidirectional power flow technology to fully optimize V2X capabilities. This will enable customers to use EVs as another distributed energy resource they can integrate into their energy infrastructure to help power operations. The first innovations from this effort are set to be announced in September. So what does this do for ChargePoint Holdings, Inc.'s business? In addition to a compelling and highly differentiated offering, we now have access to Eaton's formidable go-to-market engine, which does nearly $25 billion in annual sales across more than 160 countries. We anticipate that the relationship will drive incremental revenue growth for ChargePoint Holdings, Inc. This partnership cements ChargePoint Holdings, Inc. as the enabler of the entire EV ecosystem, from the grid to the dashboard of the vehicle and everything in between. Our second major announcement of the quarter, once again aligned with our goal of delivering innovation, was the announcement of our new AC hardware architecture. This is the first product line developed utilizing our lower-cost co-development structure and will enter the market at a highly competitive price point while still increasing our margins. This new architecture underpins a range of upcoming models that will roll out over the next year, serving home, commercial, and fleet use cases. These products will represent a major portion of our hardware volume. By bringing a generational leap in our technology to market at an affordable price point, we anticipate greater volume in the US, where we have the number one AC market share and considerable market penetration in Europe, where we have not had a product in this category to date. The first charger, part of our European take-home fleet solution, is expected to begin production in July. Growth and innovation remain the year two priorities of our strategic plan, and we are making progress on both. We entered year two ahead of schedule, positioning us to realize the benefits of our streamlined cost structure and revitalized product portfolio in year three. Our partnership with Eaton unlocks immediate growth opportunities by combining our EV charging leadership with their complementary solutions and their commercial scale. Our new AC hardware architecture is the first of several high-impact innovations planned for this year, designed to expand market share, drive volume, and improve margins. Combined with our operational excellence, we are laying the groundwork for meaningful financial upside as the year moves on. I will now turn the call over to our CFO, Mansi Khetani, to cover our financials in more detail. Mansi Khetani: Thanks, Rick. As a reminder, please see our earnings press release where we reconcile our non-GAAP results to GAAP. Our principal exclusions are stock-based compensation, amortization of intangible assets, and certain costs related to restructuring and acquisitions. Revenue for the first quarter was $98 million, within our guidance range. Network charging systems at $52 million accounted for 53% of first-quarter revenue. This was almost flat sequentially despite Q1 typically experiencing a seasonal dip and was down 20% year on year. Subscription revenue at $38 million was 39% of total revenue, essentially flat sequentially mostly due to fewer days in Q1 which impacts prorated revenue recognition, and up 14% year on year due to the recurring revenue generated from a higher installed base. Other revenue at $8 million was 8% of total revenue, down 31% sequentially and down 8% year on year. Other includes various revenue items which tend to be lumpy and was significantly lower this quarter primarily as a result of lower one-time project revenue which is recognized based on completion rate. Turning to verticals, which we report from a billing perspective, first-quarter billings percentages were commercial 71%, fleet 13%, residential 12%, and other 3%. From a geographic perspective, North America made up 85% of revenue, and Europe was 15%. Europe was lower than normal, due largely to weakness in Germany. This was partially made up in North America, which was slightly higher compared to last quarter even though the first quarter is typically seasonally lower and despite significant macroeconomic headwinds. Non-GAAP gross margin was 31%, improving by one percentage point sequentially and up seven percentage points year on year. This is attributable to higher margins in both hardware and subscription, as well as subscription revenue growing as a percentage of total revenue. Hardware gross margin increased sequentially despite the impact of incremental tariffs and freight incurred in Q1. Subscription margins reached a record high of 60% on a GAAP basis and were even higher on a non-GAAP basis due to economies of scale and continued optimization of support costs. Based on currently available information, we expect the financial impact of tariffs on our COGS to remain minimal and expect gross margins to continue around the current range and to further improve later in the year. Non-GAAP operating expenses were $57 million, up 9% sequentially and down 15% year on year. As mentioned previously, this quarter's OpEx included the impact of annual raises and investments in certain key areas of the business. We will continue to manage OpEx closely. Non-GAAP adjusted EBITDA loss was $23 million. This compared with a loss of $17 million in the prior quarter and a loss of $36 million in the first quarter of last year. Stock-based compensation was $18 million, up from $15 million in the prior quarter and down from $22 million year on year. Our inventory balance increased by $3 million due to the impact of foreign exchange rates on inventory held by our international subsidiaries. However, we saw a decrease in inventory units across most products as we continue to sell through. We anticipate that inventory balance will reduce gradually throughout the year, helping to free up cash. Speaking of cash, we ended the quarter with $196 million in cash on hand. Q1 tends to be the quarter with the highest cash usage due to the timing of some large annual payments. We will continue to rigorously manage cash, and we have access to a $150 million revolving credit facility which remains undrawn. We have no debt maturities until 2028, and we have existing capacity on our ATM. Turning to guidance, for the second quarter of fiscal 2026, we expect revenue to be $90 million to $100 million. We are guiding with caution due to the continued changes in the macro environment, including tariff uncertainty, as well as our near-term focus on operationalizing our partnership with Eaton. While there is always a possibility of headwinds from deterioration in macro conditions, we expect revenue upside later in the year from the introduction of our new AC hardware that Rick outlined, better performance in Europe, and growth from our new partnership with Eaton. We continue to focus on revenue growth, gross margin expansion, and cost management to achieve our stated goal of being adjusted EBITDA positive in a quarter during fiscal 2026. We will now open the call for questions. At this time, I would like to remind everyone, in order to ask a question, please press star then the number one on your telephone keypad. We request that you limit yourself to one question and one follow-up. We will pause for just a moment to compile the Q&A roster. Our first question comes from the line of Colin Rusch with Oppenheimer. Your line is open. Colin Rusch: Thanks so much, guys. You know, with this Eaton partnership and what you are seeing in terms of the market and the new AC product, can you talk a little bit about the pipeline of activity and how we should be thinking about a return to growth here on the top line for the new systems? Rick Wilmer: Yeah. Thanks, Colin. I think there are a variety of forces at play, some positive, some causing caution. Obviously, the macroeconomic conditions, tariffs, and we are seeing some customers get conservative with spending in cash. There is obviously uncertainty around policies supporting the electrification of transportation, particularly in the US, which I think are also headwinds. On the other hand, we are very excited about our partnership with Eaton. We fully expect that to drive incremental growth, and there is a lot of work to do this quarter in particular to operationalize this relationship. We fully expect to hit our stride and have this, again, fully operationalized as we enter our fiscal Q3. So a variety of factors at play. Colin Rusch: Okay. And then in terms of international expansion, you know, ex-Europe, is Eaton able to help you guys get into some incremental geographies where you have not been operating to date? And how should we think about the potential for the opportunity in Central South America, other parts of North America where you are not maybe fully loaded? You know, it seems like you have got pretty good coverage in the US and Canada, but maybe you are missing something. And then, you know, potentially places like Australia and others where you could see some incremental sales. Rick Wilmer: Yeah. Eaton definitely has the capabilities to do that. At this point in time, we are focused on North America and Europe. We believe with the combined product portfolio, what we have to offer in Europe and North America, we have got plenty of TAM to address in those two geographies. But, again, the possibility definitely exists to penetrate new partnership. Colin Rusch: Thanks so much. And then just a final one on the cadence of the inventory reduction, Mansi. Should we be thinking about that as kind of low single-digit millions, mid-single-digit millions, of inventory consumption on a quarterly basis? Just want to get a better sense of how to get that number on a trajectory basis and what is the right target for you guys in terms of the right inventory that you want to be carrying on an ongoing basis? Mansi Khetani: Yeah. So, you know, obviously, there are a lot of factors that inventory balance will depend on. It depends on the mix of sell-through, the mix of production, etc. So all we can say right now is that we expect gradual reduction with a more meaningful reduction coming in the second half as we see revenue growth. Colin Rusch: Okay. I will hop back in queue. Thanks, guys. Operator: Thank you. Again, if you would like to ask a question, press star one on your telephone keypad. That is all the questions for today. Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 994%* — a market-crushing outperformance compared to 172% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of June 2, 2025 This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Parts of this article were created using Large Language Models (LLMs) based on The Motley Fool's insights and investing approach. It has been reviewed by our AI quality control systems. Since LLMs cannot (currently) own stocks, it has no positions in any of the stocks mentioned. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Yahoo
5 days ago
- Business
- Yahoo
POSaBIT Systems Corp (POSAF) Q1 2025 Earnings Call Highlights: Record Margins and Strong Growth ...
Adjusted Gross Margin Percentage: Increased from 64% in Q4 2024 to 65% in Q1 2025, an all-time high for POSaBIT. Adjusted Gross Profit: Grew by 9.4% year-over-year from Q1 2024 to Q1 2025. Adjusted EBITDA: Increased by 93.5% year-over-year from Q1 2024 to Q1 2025. New Locations Onboarded: Over 50 new locations in Q1 2025. Cash Flow: Positive cash flow in Q1 2025 despite a slight reduction in available cash due to final legal liability payment and salary increases. Warning! GuruFocus has detected 5 Warning Signs with POSAF. Release Date: May 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. POSaBIT Systems Corp (POSAF) onboarded over 50 new locations in Q1, indicating strong growth in their point-of-sale business. The company's new e-commerce platform has exceeded forecasts and is growing rapidly since its beta launch. Adjusted gross margin percentage increased to an all-time high of 65% in Q1, up from 64% in Q4 of the previous year. Year-over-year, adjusted gross profit grew by 9.4% and adjusted EBITDA grew by 93.5%, showcasing significant financial improvement. POSaBIT Systems Corp (POSAF) was cash flow positive in Q1 and expects future quarters to continue this trend. Top line revenue was down slightly quarter-over-quarter due to migration between payment processors. Available cash decreased slightly in Q1 due to a final payment on a legal liability and salary increases. The company did not provide formal guidance for future quarters, which may create uncertainty for investors. The earnings call was brief, potentially leaving some stakeholders with unanswered questions. The timing of the earnings call at 4:30 PM Eastern Time on a Friday may have been inconvenient for some participants. Q: Can you provide an overview of POSaBIT's performance in Q1 2025? A: Ryan Hamlin, CEO, stated that Q1 2025 was consistent with the previous four quarters, with adjusted gross margin dollars and percentage remaining stable. The company focused on resource efficiency and maximizing gross profit, even when revenue was slightly down. They onboarded over 50 new locations and saw significant growth in their e-commerce platform. Q: What were the key financial highlights for Q1 2025? A: Ryan Hamlin noted that top-line revenue was slightly down due to a migration between payment processors aimed at improving gross margin and reducing risk. Adjusted gross margin percentage increased to 65%, an all-time high for POSaBIT. Year-over-year, adjusted gross profit grew by 9.4%, and adjusted EBITDA increased by 93.5%. Q: How did cash flow and financial stability fare in Q1 2025? A: The company experienced a slight reduction in available cash due to a final legal liability payment, small salary increases, and paying down aged payables. However, POSaBIT was cash flow positive for the quarter and expects future quarters to continue this trend. Q: What are the expectations for Q2 2025? A: Ryan Hamlin expressed optimism for Q2, anticipating improvements in adjusted gross margin dollars and adjusted EBITDA. While no formal guidance was provided, the company remains positive about its future prospects. Q: Were there any questions from participants during the call? A: There were no questions from participants during the call, and the session concluded without further inquiries. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
National Post
6 days ago
- Business
- National Post
Cresco Labs Continues Track Record of Delivering Strong Operating Cash Flow
Article content CHICAGO — Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ) (' Cresco Labs ' or the ' Company '), the industry leader in branded cannabis products with a portfolio of America's most popular brands and the operator of Sunnyside dispensaries, today released its financial and operating results for the first quarter ended and year ended March 31, 2025. All financial information presented in this release is reported in accordance with U.S. GAAP and in U.S. dollars, unless otherwise indicated, and is available on the Company's investor website, here. Article content First Quarter 2025 Highlights Article content First quarter revenue of $166 million. First quarter operating cash flow of $30 million and Free Cash Flow 1 of $25 million. Gross profit of $79 million. Adjusted gross profit 1 of $82 million; and an Adjusted gross margin 1 of 49% of revenue. SG&A of $58 million or 35% of revenue. Net loss of $15 million. First quarter Adjusted EBITDA 1 of $36 million and Adjusted EBITDA margin 1 of 22%. Retained the No. 1 share position in multiple billion dollar markets. 2 Article content 'We entered 2025 with the flexibility and financial strength needed to navigate market volatility, complete our debt refinancing, and remain both strategic and patient as we invest thoughtfully for long-term growth.' Article content In Q1, we delivered $166 million in revenue, reflecting our successful plan to reduce AR exposure by limiting sales to wholesale accounts with credit risk. We generated $82 million in adjusted gross profit, and $36 million in Adjusted EBITDA. Most importantly, these actions translate into strong cash results. We generated $30 million in operating cash flow and ended the quarter with $162 million in cash, our highest balance in the past three years. Article content 'We're focused on ensuring our balance sheet remains in the strongest possible position to support long-term value creation,' said Charlie Bachtell, Cresco Labs CEO and co-founder. 'By staying disciplined and thoughtful in how we deploy capital, we're positioning Cresco Labs to drive margin expansion, gain market share, and invest in sustainable growth when the right opportunities arise.' Article content As of March 31, 2025, current assets were $311 million, including cash, cash equivalents, and restricted cash of $159 million. The Company had senior secured term loan debt, net of discount and issuance costs, of $353 million and a mortgage loan, net of discount and issuance costs of $18 million. Total shares on a fully converted basis to Subordinate Voting Shares were 484,592,240 as of March 31, 2025. Article content The Company will host a conference call and webcast to discuss its financial results on Monday, June 2, 2025, at 8:30am Eastern Time (7:30am Central Time). The conference call may be accessed via webcast or by dialing 1-833-470-1428 (US Toll Free) or 1-404-975-4839 (US Local), providing access code 671160. Archived access to the webcast will be available for one year on Cresco Labs' investor website, here. Article content 1 See 'Non-GAAP Financial Measures' at the end of this press release for more information regarding the Company's use of non-GAAP financial measures. 2 According to Hoodie Analytics. Article content Consolidated Financial Statements Article content The financial information reported in this press release is based on unaudited management prepared financial statements for the quarter ended March 31, 2025. These financial statements have been prepared in accordance with U.S. GAAP. The Company expects to file its unaudited condensed interim consolidated financial statements for the quarter ended March 31, 2025, on SEDAR+ and EDGAR on or about May 30, 2025. Accordingly, such financial information may be subject to change. All financial information contained in this press release is qualified in its entirety with reference to such financial statements. While the Company does not expect there to be any material changes between the information contained in this press release and the consolidated financial statements it files on SEDAR+ and EDGAR, to the extent that the financial information contained in this press release is inconsistent with the information contained in the Company's financial statements, the financial information contained in this press release shall be deemed to be modified or superseded by the Company's filed financial statements. The making of a modifying or superseding statement shall not be deemed an admission, for any purposes, that the modified or superseded statement, when made, constituted a misrepresentation for purposes of applicable securities laws. Further, the reader should refer to the additional disclosures in the Company's audited financial statements for the year ended December 31, 2024, filed on SEDAR+ and EDGAR. Article content Cresco Labs references certain non-GAAP financial measures throughout this press release, which may not be comparable to similar measures presented by other issuers. Please see the 'Non-GAAP Financial Measures' section below for more detailed information. Article content This release reports its financial results in accordance with U.S. GAAP and includes certain non-GAAP financial measures that do not have standardized definitions under U.S. GAAP. The non-GAAP measures include: Earnings before interest, taxes, depreciation, and amortization ('EBITDA'); Adjusted EBITDA; Adjusted EBITDA margin; Adjusted gross profit; Adjusted gross profit margin; Adjusted selling, general, and administrative expenses ('Adjusted SG&A'), Adjusted SG&A margin; and Free Cash Flow are non-GAAP financial measures and do not have standardized definitions under U.S. GAAP. The Company defines these non-GAAP financial measures as follows: EBITDA as net loss (income) before interest, taxes, depreciation, and amortization; Adjusted EBITDA as EBITDA less other (expense) income, net, fair value mark-up for acquired inventory, adjustments for acquisition and non-core costs, impairment and share-based compensation; Adjusted EBITDA Margin as Adjusted EBITDA divided by revenues, net; Adjusted gross profit as gross profit less fair value mark-up for acquired inventory and adjustments for acquisition and non-core costs; Adjusted gross profit margin as Adjusted gross profit divided by revenues, net; Adjusted SG&A as SG&A less adjustments for acquisition and non-core costs; Adjusted SG&A margin as Adjusted SG&A divided by revenues, net; and Free Cash Flow as Net cash provided by operating activities less purchases of property and equipment and proceeds from tenant improvement allowances. The Company has provided the non-GAAP financial measures, which are not calculated or presented in accordance with U.S. GAAP, as supplemental information and in addition to the financial measures that are calculated and presented in accordance with U.S. GAAP and may not be comparable to similar measures presented by other issuers. These supplemental non-GAAP financial measures are presented because management has evaluated the financial results both including and excluding the adjusted items and believe that the supplemental non-GAAP financial measures presented provide additional perspective and insights when analyzing the core operating performance of the business. These supplemental non-GAAP financial measures should not be considered superior to, as a substitute for or as an alternative to, and should only be considered in conjunction with, the U.S. GAAP financial measures presented herein. Accordingly, the Company has included below reconciliations of the supplemental non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. Article content Cresco Labs' mission is to normalize and professionalize the cannabis industry through a CPG approach to building national brands and a customer-focused retail experience, while acting as a steward for the industry on legislative and regulatory-focused initiatives. As a leader in cultivation, production, and branded product distribution, the Company is leveraging its scale and agility to grow its portfolio of brands that include Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy's, and Remedi, on a national level. The Company also operates highly productive dispensaries nationally under the Sunnyside brand that focus on building patient and consumer trust and delivering ongoing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED initiative efforts, Cresco Labs embraces the responsibility to support communities through authentic engagement, economic opportunity, investment, workforce development, and legislative initiatives designed to create the most responsible, respectable and robust cannabis industry possible. Learn more about Cresco Labs' journey by visiting or following the Company on Facebook, X or LinkedIn. Article content This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute 'forward-looking statements' within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 (collectively, 'forward-looking statements'). Such forward-looking statements are not representative of historical facts or information or current condition but instead represent only the Company's beliefs regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as, 'may,' 'will,' 'should,' 'could,' 'would,' 'expects,' 'plans,' 'anticipates,' 'believes,' 'estimates,' 'projects,' 'predicts,' 'potential,' or 'continue,' or the negative of those forms or other comparable terms. The Company's forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to those risks discussed under 'Risk Factors' in the Company's Annual Information Form for the year ended December 31, 2024, filed on SEDAR+ and EDGAR, other documents filed by the Company with Canadian securities regulatory authorities; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Because of these uncertainties, you should not place undue reliance on the Company's forward-looking statements. No assurances are given as to the future trading price or trading volumes of Cresco Labs' shares, nor as to the Company's financial performance in future financial periods. The Company does not intend to update any of these factors or to publicly announce the result of any revisions to any of the Company's forward-looking statements contained herein, whether as a result of new information, any future event, or otherwise. Except as otherwise indicated, this press release speaks as of the date hereof. The distribution of this press release does not imply that there has been no change in the affairs of the Company after the date hereof or create any duty or commitment to update or supplement any information provided in this press release or otherwise. Article content Cresco Labs Inc. For the Three Months Ended March 31, 2025, December 31, 2024, and March 31, 2024 For the Three Months Ended ($ in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Revenue, net $ 165,757 $ 175,909 $ 184,295 Cost of goods sold 87,126 91,883 92,083 Gross profit 78,631 84,026 92,212 Gross profit % 47.4 % 47.8 % 50.0 % Operating expenses: Selling, general, and administrative 57,811 56,030 54,013 Share-based compensation 2,075 3,133 3,614 Depreciation and amortization 5,156 5,457 5,422 Total operating expenses 65,042 64,620 63,049 Income from operations 13,589 19,406 29,163 Other (expense) income, net: Interest expense, net (14,824 ) (13,079 ) (14,071 ) Other income (expense), net 317 (3,272 ) 856 Total other expense, net (14,507 ) (16,351 ) (13,215 ) (Loss) income before income taxes (918 ) 3,055 15,948 Income tax expense (14,316 ) (2,616 ) (18,003 ) Net (loss) income 1 $ (15,234 ) $ 439 $ (2,055 ) 1 Net (loss) income includes amounts attributable to non-controlling interests. Article content Cresco Labs Inc. Unaudited Reconciliation of Net (Loss) Income to Adjusted EBITDA (Non-GAAP) For the Three Months Ended March 31, 2025, December 31, 2024, and March 31, 2024 For the Three Months Ended ($ in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Net (loss) income 1 $ (15,234 ) $ 439 $ (2,055 ) Depreciation and amortization 12,906 13,904 15,331 Interest expense, net 14,824 13,079 14,071 Income tax expense 14,316 2,616 18,003 EBITDA (Non-GAAP) $ 26,812 $ 30,038 $ 45,350 Other (income) expense, net (317 ) 3,272 (856 ) Adjustments for acquisition and other non-core costs 7,015 4,493 4,470 Share-based compensation 2,723 3,705 4,197 Adjusted EBITDA (Non-GAAP) $ 36,233 $ 41,508 $ 53,161 Adjusted EBITDA % (Non-GAAP) 21.9 % 23.6 % 28.8 % 1 Net (loss) income includes amounts attributable to non-controlling interests. Article content Article content Article content Article content Article content Contacts Article content Media Press@ Article content Investors TJ Cole, Cresco Labs SVP, Corporate Development & Investor Relations investors@ Article content Article content Article content
Zawya
26-05-2025
- Business
- Zawya
Hyatt maintains growth momentum across the Middle East and Africa with strong Q1 2025 global performance and strategic expansion plans
Hyatt opened more than 11,000 rooms globally in the first quarter of 2025. Hyatt's global pipeline reached approximately 138,000 rooms. Approximately 1.1 million shares were repurchased in Q1 2025 for $149 million. Hyatt expects to triple its portfolio in Saudi Arabia in the next five years, with upcoming destination openings in The Red Sea and AlUla set for next year. United Arab Emirates – Hyatt has announced its Q1 2025 financial results, showcasing continued business strength and strong performance globally. The company continues to grow with intent across the Middle East and Africa, with new regional openings celebrated in the first quarter of 2025, including Andaz Doha in Qatar, Hyatt Place Nairobi Westlands and Hyatt House Nairobi Westlands in Kenya. The company is also progressing towards its growth plans to triple its portfolio in Saudi Arabia within five years, supported by high-profile upcoming openings, brand debuts and a growing development pipeline. In Q1 2025, Hyatt reported a 5.7% increase in comparable system-wide RevPAR, reflecting strong demand across global markets. Hyatt also announced that its global net rooms grew by 10.5%, and Adjusted EBITDA reached $273 million, a 24.4% increase after adjusting for assets sold in 2024, demonstrating the strength of the company's asset-light business model. In Saudi Arabia, Hyatt is preparing for several openings that reflect its strong alignment with the Kingdom's Vision 2030 and the rapid evolution of its tourism sector. Miraval The Red Sea, scheduled to open later this year, will mark the debut of the wellness brand in the region and the first of the brand's resorts outside of the U.S. market. Set on Shura Island, the resort will feature 180 guestrooms and suites, offering immersive wellness programming tailored to each traveller. Additionally, Grand Hyatt The Red Sea, expected to open in 2026, will offer a premium beachfront resort experience and an array of facilities, including several distinctive restaurants and exceptional meeting and event spaces. With 430 rooms, the property is the largest resort on the island, and it will be the premier venue for large-scale conferences, exhibitions, and celebratory events. Within the rising cultural destination of Saudi Arabia, AlUla, Hyatt is set to open Hyatt Place AlUla in 2026. This 215-key property will offer guests and World of Hyatt members more travel choices to experience destinations that showcase rich heritage and unique landscapes. These high-impact developments form a key part of Hyatt's plan to expand its presence across the Kingdom of Saudi Arabia, meeting increasing demand for luxury, wellness, and lifestyle experiences while contributing to national tourism goals. Hyatt's commitment to enhancing its lifestyle and luxury portfolio in the GCC was reflected in the recent opening of Andaz Doha in Qatar. Opened in February 2025, Andaz Doha introduced Hyatt's lifestyle brand to the country. Located in the prestigious West Bay area, the hotel offers 256 guestrooms, including 32 suites and 4 Royal suites, as well as 56 residences for long-term stays. The property features distinctive dining concepts and design elements that pay homage to Qatari culture. Hyatt continues to lead with a development pipeline of approximately 138,000 rooms globally under executed management or franchise agreements. The company's first-quarter performance also included net income of $20 million and the repurchase of approximately 1.1 million shares of Class A common stock for $149 million, reflecting its continued focus on delivering shareholder value. To view Hyatt's first quarter earnings and read the full press release, please visit Hyatt's newsroom. The term 'Hyatt' is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates. About Hyatt Hotels Corporation Hyatt Hotels Corporation, headquartered in Chicago, is a leading global hospitality company guided by its purpose – to care for people so they can be their best. As of March 31, 2025, the Company's portfolio included more than 1,450 hotels and all-inclusive properties in 79 countries across six continents. The Company's offering includes brands in the Luxury Portfolio, including Park Hyatt ®, Alila ®, Miraval ®, Impression by Secrets, and The Unbound Collection by Hyatt ®; the Lifestyle Portfolio, including Andaz ®, Thompson Hotels ®, The Standard ®, Dream ® Hotels, The StandardX, Breathless Resorts & Spas ®, JdV by Hyatt ®, Bunkhouse ® Hotels, and Me and All Hotels; the Inclusive Collection, including Zoëtry ® Wellness & Spa Resorts, Hyatt Ziva ®, Hyatt Zilara ®, Secrets ® Resorts & Spas, Dreams ® Resorts & Spas, Hyatt Vivid Hotels & Resorts, Sunscape ® Resorts & Spas, Alua Hotels & Resorts ®, and Bahia Principe Hotels & Resorts; the Classics Portfolio, including Grand Hyatt ®, Hyatt Regency ®, Destination by Hyatt ®, Hyatt Centric ®, Hyatt Vacation Club ®, and Hyatt ®; and the Essentials Portfolio, including Caption by Hyatt ®, Hyatt Place ®, Hyatt House ®, Hyatt Studios, Hyatt Select, and UrCove. Subsidiaries of the Company operate the World of Hyatt® loyalty program, ALG Vacations®, Mr & Mrs Smith, Unlimited Vacation Club®, Amstar® DMC destination management services, and Trisept Solutions® technology services. For more information, please visit MEDIA CONTACTS: Chloe Duncan Hyatt – Middle East and Africa Jumana Bataineh Q Communications – Dubai, United Arab Emirates jumana.b@
Yahoo
22-05-2025
- Business
- Yahoo
Golden Ocean Group Ltd (GOGL) Q1 2025 Earnings Call Highlights: Navigating Challenges with ...
Adjusted EBITDA: $12.7 million in Q1 2025, down from $69.9 million in Q4 2024. Net Loss: $44.1 million in Q1 2025, compared to a net income of $39 million in Q4 2024. Loss Per Share: $0.22 in Q1 2025, compared to earnings per share of $0.20 in Q4 2024. Net TCE Rates: $16,800 per day for Capesizes, $10,400 per day for Panamax vessels, and fleet-wide net TCE of $14,400 per day in Q1 2025. Dry Docking Costs: $38.3 million for 380 dry docking days in Q1 2025. Net Revenue: $114.7 million in Q1 2025, down from $174.9 million in Q4 2024. Operating Expenses: $95.3 million in Q1 2025, compared to $95.6 million in Q4 2024. Cash Flow from Operations: Negative $3.3 million in Q1 2025, down from $71.7 million in Q4 2024. Dividend Declared: $0.05 per share for Q1 2025. Cash and Cash Equivalents: $112.6 million at the end of Q1 2025. Debt and Finance Lease Liabilities: $1.44 billion at the end of Q1 2025. Book Equity: $1.8 billion with a total equity to total assets ratio of approximately 54% at the end of Q1 2025. Warning! GuruFocus has detected 5 Warning Signs with GOGL. Release Date: May 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Golden Ocean Group Ltd (NASDAQ:GOGL) declared a dividend of $0.05 per share for the first quarter of 2025. The company has entered into agreements for the sale of two older Kamsarmax vessels at attractive prices, aligning with their fleet renewal strategy. For Q2, Golden Ocean Group Ltd (NASDAQ:GOGL) has fixed a net TCE of about $19,000 per day for 69% of Capesize days and about $11,100 per day for 81% of Panamax days, indicating improved earnings potential. The company has $100 million of undrawn available credit lines at quarter end, providing financial flexibility. Golden Ocean Group Ltd (NASDAQ:GOGL) is benefiting from infrastructure improvements in Brazil, which have positively impacted export volumes despite adverse weather conditions. Golden Ocean Group Ltd (NASDAQ:GOGL) recorded a net loss of $44.1 million and a loss per share of $0.22 in Q1 2025. The company's adjusted EBITDA significantly decreased to $12.7 million in Q1 2025 from $69.9 million in Q4 2024. The fleet-wide net TCE rate decreased to $14,400 per day in Q1 2025 from $20,800 in Q4 2024. Golden Ocean Group Ltd (NASDAQ:GOGL) incurred high dry-docking costs of $38.3 million for 380 dry docking days in Q1 2025. Cash flow from operations was negative $3.3 million in Q1 2025, down from $71.7 million in Q4 2024. Q: Can you provide specific dates for the contemplated merger between Golden Ocean and CMB Tech? A: Peder Simonsen, CFO of Golden Ocean Management AS, stated that it is difficult to provide specific dates as there are many work streams involved in the process. The company is working according to the plan announced in the press release. Q: There seems to be a detachment between market prices and the agreed 0.95 exchange ratio for the merger. How should this be interpreted? A: Peder Simonsen explained that the pricing is influenced by various factors, including stock liquidity, and left the interpretation to market analysts. Q: What are the near-term market expectations, and are there any significant catalysts expected before Simandou volumes come online? A: Peder Simonsen noted recent disruptions in Guinea and Peru affecting market sentiment but expects volumes to pick up in line with seasonality. He remains positive for the second half of the year, anticipating healthy volumes for Capesize vessels. Q: Given the current rates and asset prices, is there an expectation for asset prices to decrease if rates remain at mid-teen levels? A: Peder Simonsen highlighted that newbuilding prices are high due to supportive long-term fundamentals and limited yard capacity. He does not expect secondhand values to decrease and believes that positive demand fundamentals will eventually impact the freight market. Q: How do you view the current market conditions compared to last year, and what are the expectations for the rest of the year? A: Peder Simonsen acknowledged that Q1 was more in line with seasonality compared to an unusually good Q1 last year. He expects miners to ramp up exports significantly in the second half, supported by constrained shipyard capacity and a positive outlook for large vessels. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
