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Yahoo
5 hours ago
- Business
- Yahoo
FuboTV Inc (FUBO) Q2 2025 Earnings Call Highlights: A Milestone Quarter with Positive Adjusted ...
North America Revenue: $371 million, down 3% year over year. North America Paid Subscribers: 1,356,000, down 6.5% year over year. Rest of World Revenue: $8.7 million, up 4.7% year over year. Rest of World Paid Subscribers: 349,000, down 12.5% year over year. Ad Revenue in North America: $25.5 million, a 2% year-over-year decline. Net Loss: $8 million or $0.02 per share, compared to a loss of $25.8 million or $0.08 per share a year ago. Adjusted EBITDA: $20.7 million, marking the first quarter of positive adjusted EBITDA. Net Cash Used in Operating Activities: $34.6 million. Free Cash Flow: Negative $37.7 million, a decline of $2.4 million year over year. Cash, Cash Equivalents, and Restricted Cash: Over $285 million at the end of the quarter. Warning! GuruFocus has detected 5 Warning Sign with FUBO. Release Date: August 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points FuboTV Inc (NYSE:FUBO) reported its first quarter of positive adjusted EBITDA, marking a significant milestone for the company. The global streaming business exceeded both revenue and subscriber expectations in the second quarter. FuboTV Inc (NYSE:FUBO) launched a pay-per-view feature, expanding its reach and creating a pathway to convert casual viewers into subscribers. The company formed a content partnership with DAZN, enhancing its sports streaming offerings and increasing visibility. FuboTV Inc (NYSE:FUBO) introduced personalized features like Catch Up To Live and Game Highlights, optimizing the live sports viewing experience. Negative Points North America revenue decreased by 3% year over year, and paid subscribers declined by 6.5%. In the Rest of World, paid subscribers fell by 12.5% year over year. Ad revenue in North America declined by 2% due to the loss of certain ad-insertable content. Free cash flow declined by $2.4 million year over year to negative $37.7 million. The company faces a competitive market environment, impacting marketing efforts and subscriber growth. Q & A Highlights Q: Congrats on the EBITDA profitability. Can you discuss subscriber expectations for the third quarter, considering the competitive environment and new product launches? A: John Janedis, CFO: July finished in line with expectations for subscribers. With the fall sports season approaching, we expect a typical seasonal uptick and reactivations. The market is competitive, so we focus on subscriber acquisition cost (SAC) conversion and churn. David Gandler, CEO: We see strong retention in our core English product and believe efficient marketing will lead to greater retention into the football season. Q: Can you update us on the French acquisition and its impact on Fubo? A: David Gandler, CEO: The acquisition has integrated our technology teams, enhancing our technology stack. We are discussing significant sports rights in France, which we expect to come online soon. We haven't yet provided Molotov with our ad technology, but plan to do so by the end of Q4 2025 or early 2026. Q: How are ad trends performing, and is the Fubo Sports Network FAST channel offsetting any declines? A: John Janedis, CFO: Auto softness continues, but overall ad decline isn't significant. Retail e-commerce and tech categories are strong. The FAST channels contribute high single digits to ad revenue and are growing in strong double digits, providing a modest positive tailwind. Q: Without guidance this quarter, what is the directional trend for EBITDA? A: John Janedis, CFO: Our business is seasonal, with Q2 typically being the strongest for adjusted EBITDA. In the back half of the year, while we grow subs, marketing costs also increase. Normal seasonal trends for profitability should continue. Q: What were the factors behind the revised subscriber guidance for Q2? A: John Janedis, CFO: We exceeded the original guide by about 100,000 subscribers due to strong interest in the Latino product after a price reduction and better retention trends. David Gandler, CEO: Despite losing content partners like Warner Bros. Discovery and Univision, we've seen strong conversion on Latino packages and stabilized the advertising business. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
2 days ago
- Business
- Yahoo
Vistra Reports Second Quarter 2025 Results
Earnings Release Highlights GAAP second quarter 2025 Net Income of $327 million and Cash Flow from Operations of $1,171 million. Net Income from Ongoing Operations1 of $370 million and Ongoing Operations Adjusted EBITDA1 of $1,349 million. Reaffirmed 2025 Ongoing Operations Adjusted EBITDA1 and Ongoing Operations Adjusted FCFbG1 guidance ranges of $5.5 billion to $6.1 billion and $3.0 billion to $3.6 billion, respectively. Executed definitive agreement to acquire seven natural gas facilities, totaling ~2,600 MW of capacity, from Lotus Infrastructure Partners, which will further geographically diversify our natural gas fleet. Increased midpoint opportunity2 for 2026 Ongoing Operations Adjusted EBITDA1 to more than $6.8 billion, excluding any potential benefit from assets to be acquired from Lotus Infrastructure Partners. Received approval from the Nuclear Regulatory Commission to extend the operating license of Perry Nuclear Power Plant for an additional 20 years, through 2046. IRVING, Texas, Aug. 7, 2025 /PRNewswire/ -- Vistra Corp. (NYSE: VST) today reported its second quarter 2025 financial results and other highlights. "With power demand rising, our team at Vistra remains steadfast in our commitment to reliably power American homes and businesses, providing a critical foundation for the U.S. economy," said Jim Burke, president and CEO of Vistra. "This quarter, we solidified several opportunities to expand our generation capacity and capabilities for decades to come, including through the execution of a definitive agreement to acquire a 2,600-MW natural gas generation fleet spanning the PJM, New England, New York, and California electricity markets, and through NRC approval of a license extension through 2046 for our Perry Nuclear Power Plant in Ohio. Now, each of Vistra's six nuclear reactors are licensed to operate for a total of 60 years." "In addition, the team's focus on our core business operations through our integrated business model resulted in solid second quarter results, throughout a variety of pricing and weather conditions. The performance year-to-date and the forecast we see for the remainder of 2025 provide increasing confidence in our reiterated 2025 guidance ranges and our increased 2026 midpoint opportunity. We look forward to continuing the momentum and executing on the remainder of the year ahead," Burke concluded. Summary of Financial Results for the Three and Six Months Ended June 30, 2025 and 2024(Unaudited) (Millions of Dollars) Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Net income (loss) $ 327$ 467$ 59$ 485 Ongoing operations net income (loss) $ 370$ 498$ 170$ 541 Ongoing operations Adjusted EBITDA $ 1,349$ 1,412$ 2,589$ 2,222 Adjusted EBITDA by SegmentRetail $ 756$ 789$ 940$ 761 Texas $ 142$ 242$ 632$ 671 East $ 418$ 345$ 932$ 713 West $ 49$ 58$ 111$ 113 Corporate and Other $ (16)$ (22)$ (26)$ (36) Asset Closure $ (17)$ (24)$ (41)$ (44) For the quarter ended June 30, 2025, Vistra reported Net Income of $327 million, Net Income from Ongoing Operations1 of $370 million, and Ongoing Operations Adjusted EBITDA1 of $1,349 million. Net Income for the second quarter 2025 decreased by $(140) million compared to the second quarter 2024, driven primarily by higher plant outage expense, including Martin Lake Unit 1 and Moss Landing, and an increase in depreciation and amortization due primarily to an increase in capital additions. Ongoing Operations Adjusted EBITDA1 for the second quarter 2025 decreased by $(63) million compared to the second quarter 2024, driven primarily by higher plant outage costs. Guidance($ in millions) Reaffirmed 2025 Guidance Ranges Ongoing Operations Adjusted EBITDA $5,500 - $6,100 Ongoing Operations Adjusted FCFbG $3,000 - $3,600 As of Aug. 1, 2025, Vistra had hedged approximately 100% of its expected generation volumes for 2025 and approximately 95% for 2026. The company's comprehensive hedging program supports the reaffirmed 2025 guidance ranges and increased Ongoing Operations Adjusted EBITDA1 midpoint opportunity2 of more than $6,800 million for 2026, excluding any potential benefit from assets to be acquired from Lotus Infrastructure Partners. Share Repurchase Program As of Aug. 1, 2025: Vistra executed ~$5.4 billion in share repurchases since November 2021. Vistra had ~339 million shares outstanding, representing a ~30% reduction of the amount of shares outstanding on Nov. 2, 2021. ~$1.4 billion dollars of the share repurchase authorization remained available, which we expect to complete by year end 2026. Clean Energy Investments Vistra continues to strategically and cost-effectively grow its fleet of zero-carbon resources, focusing on nuclear, solar, and energy storage. During the second quarter, the company advanced these efforts by: Receiving approval to extend operations of our 1,268-MW Perry Nuclear Power Plant (PJM) for an additional 20 years, through 2046. Beginning construction on our third Illinois Coal to Solar & Energy Storage Initiative project; Newton Solar & Energy Storage Facility (MISO), located onsite at our Newton Power Plant, will have a capacity of 52-MW solar/ 2-MW storage. Obtaining a power purchase agreement and advancing construction at Deer Creek Solar & Energy Storage Facility (CAISO), 50-MW solar/50-MW storage, with commercial operations expected mid-2026. Progressing with construction in support of two power purchase agreements at new solar facilities, together totaling over 600 MW, with two of the world's leading technology companies – 200 MW with Amazon in Texas (ERCOT) and 405 MW with Microsoft in Illinois (MISO). Liquidity As of June 30, 2025, Vistra had total available liquidity of approximately $2,618 million, including cash and cash equivalents of $458 million, $2,160 million of availability under its corporate revolving credit facility, and no availability under its commodity-linked revolving credit facility. Available capacity under the commodity-linked revolving credit facility reflects the borrowing base of $861 million and excludes $889 million of commitments under the facility that were not available to be drawn as of June 30, 2025. Earnings Webcast Vistra will host a webcast today, Aug. 7, 2025, beginning at 9 a.m. ET (8 a.m. CT) to discuss these results and related matters. The live webcast and the accompanying slides that will be discussed on the call can be accessed via Vistra's website at under "Investor Relations" and then "Events & Presentations." Participants can also listen by phone by registering here prior to the start time of the call to receive a conference call dial-in number. A replay of the webcast will be available on Vistra's website for one year following the live event. About Vistra Vistra (NYSE: VST) is a leading Fortune 500 integrated retail electricity and power generation company based in Irving, Texas, that provides essential resources to customers, businesses, and communities from California to Maine. Vistra is a leader in transforming the energy landscape, with an unyielding focus on reliability, affordability, and sustainability. The company safely operates a reliable, efficient power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities while taking an innovative, customer-centric approach to its retail business. Learn more at 1 Ongoing Operations excludes the Asset Closure segment. Net Income (Loss) from Ongoing Operations, Ongoing Operations Adjusted EBITDA, and Ongoing Operations Adjusted Free Cash Flow before Growth are non-GAAP financial measures. Any reference to "Ongoing Operations Adjusted FCFbG" is a reference to Ongoing Operations Adjusted Free Cash Flow before Growth. See the "Non-GAAP Reconciliation" tables for further detail. Total segment information may not tie due to rounding.2 Midpoint opportunities are not intended to be guidance and represent only our estimate of potential opportunities for Ongoing Operations Adjusted EBITDA in 2026 based on market curves as of August 1, 2025. Actual results could vary and are subject to a number of risks, uncertainties and factors, including power price market movements and our hedging strategy. We have not provided a quantitative reconciliation of Ongoing Operations Adjusted EBITDA opportunities for 2026 to GAAP net income (loss) because we cannot, without unreasonable effort, calculate certain reconciling items with confidence due to the variability, complexity, and limited visibility of the adjusting items that would be excluded from Ongoing Operations Adjusted EBITDA in such out year periods. About Non-GAAP Financial Measures and Items Affecting Comparability "Adjusted EBITDA" (EBITDA as adjusted for unrealized gains or losses from hedging activities, tax receivable agreement impacts, reorganization items, and certain other items described from time to time in Vistra's earnings releases), "Adjusted Free Cash Flow before Growth" (or "Adjusted FCFbG") (cash from operating activities excluding changes in margin deposits and working capital and adjusted for capital expenditures (including capital expenditures for growth investments), other net investment activities, and other items described from time to time in Vistra's earnings releases), "Ongoing Operations Adjusted EBITDA" (adjusted EBITDA less adjusted EBITDA from Asset Closure segment), "Net Income (Loss) from Ongoing Operations" (net income less net income from Asset Closure segment), and "Ongoing Operations Adjusted Free Cash Flow before Growth" or "Ongoing Operations Adjusted FCFbG" (adjusted free cash flow before growth less cash flow from operating activities from Asset Closure segment before growth) are "non-GAAP financial measures." A non-GAAP financial measure is a numerical measure of financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in Vistra's consolidated statements of operations, comprehensive income, changes in stockholders' equity and cash flows. Non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. Vistra's non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. Vistra uses Adjusted EBITDA as a measure of performance and believes that analysis of its business by external users is enhanced by visibility to both Net Income prepared in accordance with GAAP and Adjusted EBITDA. Vistra uses Adjusted Free Cash Flow before Growth as a measure of liquidity and performance, and believes it is a useful metric to assess current performance in the period and that analysis of capital available to allocate for debt service, growth, and return of capital to stockholders is supported by disclosure of both cash provided by (used in) operating activities prepared in accordance with GAAP as well as Adjusted Free Cash Flow before Growth. Vistra uses Ongoing Operations Adjusted EBITDA as a measure of performance and Ongoing Operations Adjusted Free Cash Flow before Growth as a measure of liquidity and performance, and Vistra's management and board of directors have found it informative to view the Asset Closure segment as separate and distinct from Vistra's ongoing operations. Vistra uses Net Income (Loss) from Ongoing Operations as a non-GAAP measure that is most comparable to the GAAP measure Net Income (Loss) in order to illustrate the company's Net Income (Loss) excluding the effects of the Asset Closure segment, as well as a measure to compare to Ongoing Operations Adjusted EBITDA. The schedules attached to this earnings release reconcile the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with U.S. GAAP. Cautionary Note Regarding Forward-Looking Statements The information presented herein includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which Vistra Corp. ("Vistra") operates and beliefs of and assumptions made by Vistra's management, involve risks and uncertainties, which are difficult to predict and are not guarantees of future performance, that could significantly affect the financial results of Vistra. All statements, other than statements of historical facts, that are presented herein, or in response to questions or otherwise, that address activities, events or developments that may occur in the future, including such matters as activities related to our financial or operational projections including financial condition and cash flows, projected synergy, value lever and net debt targets, capital allocation, capital expenditures, liquidity, projected Adjusted EBITDA to free cash flow conversion rate, dividend policy, business strategy, competitive strengths, goals, future acquisitions or dispositions, development or operation of power generation assets, market and industry developments and the growth of our businesses and operations, including potential large load center opportunities (often, but not always, through the use of words or phrases, or the negative variations of those words or other comparable words of a future or forward-looking nature, including, but not limited to: "intends," "plans," "will likely," "unlikely," "believe," "confident," "expect," "seek," "anticipate," "estimate," "continue," "will," "shall," "should," "could," "may," "might," "predict," "project," "forecast," "target," "potential," "goal," "objective," "guidance" and "outlook"), are forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. Although Vistra believes that in making any such forward-looking statement, Vistra's expectations are based on reasonable assumptions, any such forward-looking statement involves uncertainties and risks that could cause results to differ materially from those projected in or implied by any such forward-looking statement, including, but not limited to: (i) adverse changes in general economic or market conditions (including changes in interest rates) or changes in political conditions or federal or state laws and regulations; (ii) the ability of Vistra to execute upon its contemplated strategic, capital allocation, performance, and cost-saving initiatives, including the closing of the acquisition of the natural gas assets from Lotus Infrastructure Partners, and to successfully integrate acquired businesses; (iii) actions by credit ratings agencies; (iv) the severity, magnitude and duration of extreme weather events, contingencies and uncertainties relating thereto, most of which are difficult to predict and many of which are beyond our control, and the resulting effects on our results of operations, financial condition and cash flows; and (v) those additional risks and factors discussed in reports filed with the Securities and Exchange Commission by Vistra from time to time, including the uncertainties and risks discussed in the sections entitled "Risk Factors" and "Forward-Looking Statements" in Vistra's annual report on Form 10-K for the year ended December 31, 2024, and subsequently filed quarterly reports on Form 10-Q. Any forward-looking statement speaks only at the date on which it is made, and except as may be required by law, Vistra will not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible to predict all of them; nor can Vistra assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. VISTRA CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Millions of Dollars)Three Months Ended June 30,Six Months Ended June 30,2025202420252024 Operating revenues $ 4,250$ 3,845$ 8,183$ 6,899 Fuel, purchased power costs, and delivery fees (1,974)(1,597)(4,421)(3,313) Operating costs (733)(628)(1,426)(1,126) Depreciation and amortization (541)(437)(1,063)(840) Selling, general, and administrative expenses (419)(375)(810)(726) Impairment of long-lived assets (68)—(68)— Operating income 515808395894 Other income, net 19159186146 Interest expense and related charges (303)(241)(622)(411) Impacts of Tax Receivable Agreement ———(5) Net income (loss) before income taxes 403626(41)624 Income tax (expense) benefit (76)(159)100(139) Net income $ 327$ 467$ 59$ 485 Net income attributable to noncontrolling interest —(102)—(155) Net income attributable to Vistra $ 327$ 365$ 59$ 330 Cumulative dividends attributable to preferred stock (47)(47)(96)(96) Net income (loss) attributable to Vistra common stock $ 280$ 318$ (37)$ 234 VISTRA CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Millions of Dollars)Six Months Ended June 30,20252024 Cash flows — operating activities:Net income $ 59$ 485 Adjustments to reconcile net income to cash provided by operating activities:Depreciation and amortization 1,5341,177 Deferred income tax expense (benefit), net (128)115 Impairment of long-lived and other assets 68— Unrealized net loss from mark-to-market valuations of commodities 551130 Unrealized net (gain) loss from mark-to-market valuations of interest rate swaps 74(58) Unrealized net gain from nuclear decommissioning trusts (74)(55) Asset retirement obligation accretion expense 6652 Bad debt expense 8772 Stock-based compensation expense 4653 Involuntary conversion gain (80)— Other, net 13(28) Changes in operating assets and liabilities:Margin deposits, net (368)433 Accrued interest (5)4 Accrued taxes (56)(58) Accrued employee incentive (145)(140) Other operating assets and liabilities (471)(674) Cash provided by operating activities 1,1711,508 Cash flows — investing activities:Capital expenditures, including nuclear fuel purchases and LTSA prepayments (1,458)(963) Energy Harbor acquisition (net of cash acquired) —(3,065) Proceeds from sales of nuclear decommissioning trust fund securities 3,024777 Investments in nuclear decommissioning trust fund securities (3,035)(788) Proceeds from sales of environmental allowances 2565 Purchases of environmental allowances (392)(359) Insurance proceeds for recovery of damaged property, plant and equipment 1731 Proceeds from sale of property, plant and equipment, including nuclear fuel —129 Other, net (8)6 Cash used in investing activities (1,671)(4,197) Cash flows — financing activities:Issuances of debt 2092,200 Repayments/repurchases of debt (757)(1,106) Net borrowings (repayments) under accounts receivable financing 375750 Borrowings under Commodity-Linked Facility 987500 Repayments under Commodity-Linked Facility (126)(500) Debt issuance costs —(32) Stock repurchases (589)(622) Dividends paid to common stockholders (152)(150) Dividends paid to preferred stockholders (96)(75) Dividends paid to noncontrolling interest holders —(15) Tax withholding on stock based compensation (50)(11) Principal payment on forward repurchase obligation (41)— TRA Repurchase and tender offer — return of capital —(122) Other, net 13(6) Cash (used in) provided by financing activities (227)811 Net change in cash, cash equivalents and restricted cash (727)(1,878) Cash, cash equivalents and restricted cash — beginning balance 1,2223,539 Cash, cash equivalents and restricted cash — ending balance $ 495$ 1,661 VISTRA CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA FOR THE THREE MONTHS ENDED JUNE 30, 2025 (Unaudited) (Millions of Dollars)RetailTexasEastWestEliminations / Corp and OtherOngoing Operations ConsolidatedAsset ClosureVistra Corp. Consolidated Net income (loss) $ (123)$ 863$ 120$ (50)$ (440)$ 370$ (43)$ 327 Income tax expense ——1—7576—76 Interest expense and related charges (a) 17(18)(8)(1)3123021303 Depreciation and amortization (b) 241974121620669(1)668 EBITDA before Adjustments (82)1,042525(35)(33)1,417(43)1,374 Unrealized net (gain) loss resulting from hedging transactions 841(900)(39)82—(16)—(16) Purchase accounting impacts 8—9——17—17 Non-cash compensation expenses ————2525—25 Transition and merger expenses 5———1722—22 Impairment of long-lived assets —68———68—68 Insurance income (c) —(80)———(80)(21)(101) Decommissioning-related activities (d) —4(81)——(77)43(34) ERP system implementation expenses 333——9110 Other, net (e) (19)512(25)(36)3(33) Adjusted EBITDA $ 756$ 142$ 418$ 49$ (16)$ 1,349$ (17)$ 1,332 (a) Includes $26 million of unrealized mark-to-market net losses on interest rate swaps. (b) Includes nuclear fuel amortization of $30 million and $92 million, respectively, in the Texas and East segments. (c) Includes involuntary conversion gain recognized from Martin Lake incident property damage insurance in the Texas segment and revenues from Moss Landing incident business interruption proceeds in the Asset Closure segment. (d) Represents net of all NDT (income) loss of the PJM nuclear facilities and all ARO and environmental remediation expenses. (e) Includes the final application of bill credits to large commercial and industrial customers that curtailed their usage during Winter Storm Uri in the Retail segment. VISTRA CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA FOR THE SIX MONTHS ENDED JUNE 30, 2025 (Unaudited) (Millions of Dollars)RetailTexasEastWestEliminations / Corp and OtherOngoing Operations ConsolidatedAsset ClosureVistra Corp. Consolidated Net income (loss) $ 1,009$ 143$ (370)$ 27$ (639)$ 170$ (111)$ 59 Income tax expense (benefit) ——1—(101)(100)—(100) Interest expense and related charges (a) 35(32)(20)(2)6396202622 Depreciation and amortization (b) 4737880831391,303(2)1,301 EBITDA before Adjustments 1,09148941956(62)1,993(111)1,882 Unrealized net (gain) loss resulting from hedging transactions (156)13052850—552(1)551 Purchase accounting impacts 8—23——31—31 Non-cash compensation expenses ————4646—46 Transition and merger expenses 5—1—3440—40 Impairment of long-lived assets —68———68—68 Insurance income (c) —(80)———(80)(21)(101) Decommissioning-related activities (d) —9(46)——(37)8952 ERP system implementation expenses 333——9110 Other, net (e) (11)1345(44)(33)2(31) Adjusted EBITDA $ 940$ 632$ 932$ 111$ (26)$ 2,589$ (41)$ 2,548 (a) Includes $74 million of unrealized mark-to-market net losses on interest rate swaps. (b) Includes nuclear fuel amortization of $61 million and $176 million, respectively, in the Texas and East segments. (c) Includes involuntary conversion gain recognized from Martin Lake incident property damage insurance in the Texas segment and revenues from Moss Landing incident business interruption proceeds in the Asset Closure segment. (d) Represents net of all NDT (income) loss of the PJM nuclear facilities and all ARO and environmental remediation expenses. (e) Includes the final application of bill credits to large commercial and industrial customers that curtailed their usage during Winter Storm Uri in the Retail segment. VISTRA CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA FOR THE THREE MONTHS ENDED JUNE 30, 2024 (Unaudited) (Millions of Dollars)RetailTexasEastWestEliminations / Corp and OtherOngoing Operations ConsolidatedAsset ClosureVistra Corp. Consolidated Net income (loss) $ 897$ (573)$ 518$ 119$ (463)$ 498$ (31)$ 467 Income tax expense ————159159—159 Interest expense and related charges (a) 16(12)(1)—2372401241 Depreciation and amortization (b) 3116030414185277534 EBITDA before Adjustments 944(425)821133(49)1,424(23)1,401 Unrealized net (gain) loss resulting from hedging transactions (162)656(460)(77)—(43)(2)(45) Purchase accounting impacts ——(3)——(3)—(3) Non-cash compensation expenses ————3232—32 Transition and merger expenses 1———2425—25 Decommissioning-related activities (c) —5(15)——(10)—(10) ERP system implementation 433——10111 Other, net 23(1)2(29)(23)—(23) Adjusted EBITDA $ 789$ 242$ 345$ 58$ (22)$ 1,412$ (24)$ 1,388 (a) Includes $11 million of unrealized mark-to-market net gains on interest rate swaps. (b) Includes nuclear fuel amortization of $26 million and $71 million, respectively, in the Texas and East segments. (c) Represents net of all NDT (income) loss, ARO accretion expense for operating assets, and ARO remeasurement impacts for operating assets. VISTRA CORP. NON-GAAP RECONCILIATIONS - ADJUSTED EBITDA FOR THE SIX MONTHS ENDED JUNE 30, 2024 (Unaudited) (Millions of Dollars)RetailTexasEastWestEliminations / Corp and OtherOngoing Operations ConsolidatedAsset ClosureVistra Corp. Consolidated Net income (loss) $ 1,458$ (909)$ 345$ 287$ (640)$ 541$ (56)$ 485 Income tax expense ————139139—139 Interest expense and related charges (a) 22(22)——4094092411 Depreciation and amortization (b) 54320537283397214986 EBITDA before Adjustments 1,534(611)882315(59)2,061(40)2,021 Unrealized net (gain) loss resulting from hedging transactions (786)1,260(131)(207)—136(6)130 Purchase accounting impacts (1)—(4)—(14)(19)—(19) Impacts of Tax Receivable Agreement (c) ————(5)(5)—(5) Non-cash compensation expenses ————5353—53 Transition and merger expenses 2—6—5260—60 Decommissioning-related activities (d) —11(40)1—(28)—(28) ERP system implementation 6551—17118 Other, net 66(5)3(63)(53)1(52) Adjusted EBITDA $ 761$ 671$ 713$ 113$ (36)$ 2,222$ (44)$ 2,178 (a) Includes $58 million of unrealized mark-to-market net gains on interest rate swaps. (b) Includes nuclear fuel amortization of $52 million and $94 million, respectively, in the Texas and East segments. (c) Includes $10 million gain recognized on the repurchase of Tax Receivable Agreement Rights. (d) Represents net of all NDT (income) loss, ARO accretion expense for operating assets, and ARO remeasurement impacts for operating assets. VISTRA CORP. - NON-GAAP RECONCILIATIONS 2025 GUIDANCE1 (Unaudited) (Millions of Dollars)Ongoing OperationsAsset ClosureVistra Corp. ConsolidatedLowHighLowHighLowHigh Net income (loss) $ 2,310$ 2,780$ (90)$ (90)$ 2,220$ 2,690 Income tax expense 620750——620750 Interest expense and related charges (a) 1,0701,070——1,0701,070 Depreciation and amortization (b) 2,1802,180——2,1802,180 EBITDA before Adjustments $ 6,180$ 6,780$ (90)$ (90)$ 6,090$ 6,690 Unrealized net (gain) loss resulting from hedging transactions (872)(872)(2)(2)(874)(874) Fresh start/purchase accounting impacts (5)(5)——(5)(5) Non-cash compensation expenses 135135——135135 Transition and merger expenses 3535——3535 Decommissioning-related activities (c) 4848——4848 ERP system implementation expenses 1111——1111 Interest income (45)(45)——(45)(45) Other, net 1313221515 Adjusted EBITDA guidance $ 5,500$ 6,100$ (90)$ (90)$ 5,410$ 6,010 1 Regulation G Table 2025 Guidance prepared as of November 7, 2024, based on market curves as of November 4, 2024.(a) Includes $111 million interest on redeemable noncontrolling interest repurchase obligation(b) Includes nuclear fuel amortization of $412 million(c) Represents net of all NDT (income) loss of the PJM nuclear facilities, ARO accretion expense for operating assets and ARO remeasurement impacts for operating assets. VISTRA CORP. - NON-GAAP RECONCILIATIONS 2025 GUIDANCE1 (Unaudited) (Millions of Dollars)Ongoing OperationsAsset ClosureVistra Corp. ConsolidatedLowHighLowHighLowHigh Cash provided by (used in) operating activities $ 4,630$ 5,230$ (190)$ (190)$ 4,440$ 5,040 Capital expenditures including nuclear fuel purchases and LTSA prepayments (1,221)(1,221)——(1,221)(1,221) Solar and storage development expenditures (736)(736)——(736)(736) Other growth expenditures (318)(318)——(318)(318) (Purchase)/sale of environmental allowances 1515——1515 Other net investing activities (20)(20)——(20)(20) Free cash flow $ 2,350$ 2,950$ (190)$ (190)$ 2,160$ 2,760 Working capital and margin deposits (74)(74)——(74)(74) Solar and storage development expenditures 736736——736736 Other growth expenditures 318318——318318 Accrued environmental allowances (521)(521)——(521)(521) Purchase/(sale) of environmental allowances (15)(15)——(15)(15) Transition and merger expenses 5656——5656 Interest on noncontrolling interest repurchase obligation 111111——111111 ERP implementation expenditures 3939——3939 Adjusted free cash flow before growth guidance $ 3,000$ 3,600$ (190)$ (190)$ 2,810$ 3,4101 Regulation G Table 2025 Guidance prepared as of November 7, 2024, based on market curves as of November 4, 2024. Projected capital expenditures exclude any capex associated with repairs to Martin Lake Unit 1 as a result of the November 2024 fire, as well as any associated property damage insurance recoveries. View original content to download multimedia: SOURCE Vistra Corp
Yahoo
2 days ago
- Business
- Yahoo
Acacia Research Corp (ACTG) Q2 2025 Earnings Call Highlights: Navigating Challenges with ...
Total Revenue: $51.2 million for Q2 2025. Adjusted EBITDA: $1.9 million for the company. Free Cash Flow: $47.9 million, reflecting cash collection from a settlement in the IP business. Diluted EPS Loss: $0.03 per share; adjusted loss of $0.06 per share. Book Value Per Share: $5.99; excluding non-controlling interests, $5.58. Energy Operations Revenue: $15.3 million, up from $14.2 million year-over-year. Manufacturing Operations Revenue: $29 million for the quarter. Industrial Operations Revenue: $6.6 million, compared to $6.3 million last year. Intellectual Property Revenue: $0.3 million, down from $5.3 million last year. G&A Expenses: $15.5 million, up from $10.1 million last year, with $5.1 million increase due to Deflecto. Operating Loss: $12.4 million, compared to $4.8 million last year. Energy Operations Adjusted EBITDA: $7 million. Manufacturing Operations Adjusted EBITDA: $1.3 million. Industrial Operations Adjusted EBITDA: $0.6 million. Net Loss: $3.3 million or $0.03 per share; adjusted net loss of $5.9 million or $0.06 per share. Cash Equivalents and Equity Securities: $338.2 million as of June 30, 2025. Total Indebtedness: $104.4 million, with $58 million at Benchmark and $46.4 million at Deflecto. Warning! GuruFocus has detected 5 Warning Signs with ACTG. Release Date: August 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Acacia Research Corp (NASDAQ:ACTG) announced a partnership with Unchained Capital to offer secured lending solutions backed by Bitcoin, which could provide attractive risk-adjusted returns. The company generated total revenue of $51.2 million in the second quarter, with significant contributions from its energy and manufacturing operations. Acacia's hedging strategy for its energy operations is performing well, with over 70% of oil and gas production hedged through 2027, mitigating downside pricing risks. The company has made progress in optimizing operations at its Deflecto business, improving accountability, reducing overhead costs, and streamlining product offerings. Acacia's industrial segment, Printronix, is performing ahead of plan, with a successful transition to higher-margin consumable products and improved free cash flow. Negative Points Acacia reported a GAAP operating loss of $12.4 million for the second quarter, primarily due to a decline in revenue from its intellectual property business. The company experienced demand headwinds in its Deflecto business due to global trade uncertainties and tariffs, impacting its transportation safety and consumer products segments. The Class A truck market remains weak, with new orders at their lowest level since 2010, affecting Deflecto's transportation safety business. Acacia's intellectual property operations saw a significant decrease in revenue compared to the previous year, highlighting the episodic nature of this business. The macroeconomic environment, including potential recessions and declining oil and natural gas prices, poses risks to Acacia's energy operations despite hedging strategies. Q & A Highlights Q: Can you share the expected interest rates for the Bitcoin commercial loans and how do you assess their risk compared to typical commercial loans? A: The loans are expected to yield returns in the low teens, exceeding 10% for Acacia. These loans are collateralized by Bitcoin at a 50% loan-to-value ratio, stored in a secure cold storage vault. The risk is considered minimal due to the ability to manage the loan-to-value ratio and liquidate Bitcoin if necessary. Additionally, Acacia plans to hedge against Bitcoin exposure to mitigate risks. Q: Regarding Deflecto, is there any indication of recovery in the Class A truck market, or do you expect the downturn to continue? A: The tariffs have significantly impacted the market, altering buying patterns. While uncertainty persists, there is optimism that purchasing cycles may return once clarity is achieved. Acacia is implementing strategies like price increases and cost optimization to navigate the situation. The aging fleet suggests potential for market recovery once uncertainties are resolved. Q: What are Acacia's plans for the Cherokee asset over the next one to two years? A: Acacia is evaluating partnerships with third-party capital to pursue a drilling strategy in Cherokee. The company is in the middle stages of planning and aims to capitalize on the acreage acquired with the PDPs from the revolution. Specific details on the number of wells are not disclosed at this time. Q: How does Acacia ensure the security of Bitcoin collateral in cold storage, and what measures are in place to protect against regulatory changes? A: The Bitcoin collateral is held in a cold storage unit managed by Unchained, with a multi-signature system requiring two of three key holders to access the Bitcoin. This setup provides high security. The UCC lien is embedded in the Bitcoin's coding, ensuring clear ownership. Acacia is confident in the security and regulatory compliance of this arrangement. Q: With 70% of the benchmark resolution business hedged, is there a risk of going cash flow negative if oil and natural gas prices decline? A: While nothing is impossible, it is highly improbable for the business to go cash flow negative due to the hedges in place. There is some unhedged exposure, but the hedges have performed as expected, providing confidence in maintaining positive cash flow despite price volatility. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
3 days ago
- Business
- Yahoo
red violet Announces Second Quarter 2025 Financial Results
Revenue Increases 14% to $21.8 Million Producing a Record $7.5 Million in Cash Flow from Operations BOCA RATON, Fla., Aug. 06, 2025 (GLOBE NEWSWIRE) -- Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the quarter ended June 30, 2025. 'We are pleased to report another strong quarter, delivering solid revenue growth and profitability while building on the momentum established early last year,' stated Derek Dubner, red violet's CEO. 'I am particularly proud of the team's performance against a challenging comparison to last year, which included $1.0 million in one-time transactional revenue. We delivered another quarter of strong customer onboarding and broad-based demand as evidenced by volume expansion across the existing customer base. With a successful first half of 2025 behind us, we are confident in our ability to build on this performance, drive continued revenue growth, and capitalize on the significant opportunities ahead.' Second Quarter Financial Results For the three months ended June 30, 2025 as compared to the three months ended June 30, 2024: Total revenue increased 14% to $21.8 million. Gross profit increased 18% to $15.7 million. Gross margin increased to 72% from 70%. Adjusted gross profit increased 17% to $18.2 million. Adjusted gross margin increased to 84% from 82%. Net income increased 2% to $2.7 million, which resulted in earnings of $0.19 and $0.18 per basic and diluted share, respectively. Net income margin decreased to 12% from 14%. Adjusted EBITDA increased 12% to $7.6 million. Adjusted EBITDA margin decreased to 35% from 36%. Adjusted net income increased 6% to $4.1 million, which resulted in adjusted earnings of $0.29 and $0.28 per basic and diluted share, respectively. Net cash provided by operating activities increased 31% to $7.5 million. Cash and cash equivalents were $38.8 million as of June 30, 2025. Second Quarter and Recent Business Highlights Added 308 customers to IDI™ during the second quarter, ending the quarter with 9,549 customers. Added 21,335 users to FOREWARN® during the second quarter, ending the quarter with 346,671 users. Over 575 REALTOR® Associations throughout the U.S. are now contracted to use FOREWARN. Continued to win higher-tier customers at an accelerated pace, with total customer spend outpacing prior-year levels across each key revenue cohort, including $10,000 to $25,000, $25,000 to $100,000, and over $100,000, in trailing twelve-month revenue. Conference CallIn conjunction with this release, red violet will host a conference call and webcast today at 4:30pm ET to discuss its quarterly results and provide a business update. Please click here to pre-register for the conference call and obtain your dial in number and passcode. To access the live audio webcast, visit the Investors section of the red violet website at Please login at least 15 minutes prior to the start of the call to ensure adequate time for any downloads that may be required. Following the completion of the conference call, an archived webcast of the conference call will be available on the Investors section of the red violet website at About red violet® At red violet, we build proprietary technologies and apply analytical capabilities to deliver identity intelligence. Our technology powers critical solutions, which empower organizations to operate with confidence. Our solutions enable the real-time identification and location of people, businesses, assets and their interrelationships. These solutions are used for purposes including identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. Our intelligent platform, CORE™, is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence. Our solutions are used today to enable frictionless commerce, to ensure safety, and to reduce fraud and the concomitant expense borne by society. For more information, please visit Company Contact:Camilo RamirezRed Violet, Inc.561-757-4500ir@ Investor Relations Contact:Steven Hooser Three Part Advisors214-872-2710ir@ Use of Non-GAAP Financial Measures Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and free cash flow ("FCF"). Adjusted EBITDA is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on US GAAP, excluding interest income, income tax expense, depreciation and amortization, share-based compensation expense, litigation costs, acquisition-related costs, and write-off of long-lived assets. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. Adjusted net income is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on US GAAP, adjusted to exclude share-based compensation expense and amortization of share-based compensation capitalized in intangible assets, and to include the tax effect of adjustments. We define adjusted earnings per share as adjusted net income divided by the weighted average shares outstanding. We define adjusted gross profit as gross profit plus depreciation and amortization of certain intangible assets, and adjusted gross margin as adjusted gross profit as a percentage of revenue. We define FCF as net cash provided by operating activities reduced by purchase of property and equipment, and capitalized costs included in intangible assets. FORWARD-LOOKING STATEMENTS This press release contains "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipate," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward looking statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control and which may cause results to differ materially from expectations, including whether we will be able to build on our successful first half performance, continue to drive revenue growth and capitalize on the significant opportunities ahead. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release and are advised to consider the factors listed above together with the additional factors under the heading "Forward-Looking Statements" and "Risk Factors" in red violet's Form 10-K for the year ended December 31, 2024, filed on February 27, 2025, as may be supplemented or amended by the Company's other SEC filings. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by VIOLET, CONSOLIDATED BALANCE SHEETS(Amounts in thousands, except share data)(unaudited) June 30, 2025 December 31, 2024 ASSETS: Current assets: Cash and cash equivalents $ 38,848 $ 36,504 Accounts receivable, net of allowance for doubtful accounts of $179 and $188 as of June 30, 2025 and December 31, 2024, respectively 9,811 8,061 Prepaid expenses and other current assets 2,137 1,627 Total current assets 50,796 46,192 Property and equipment, net 693 545 Intangible assets, net 37,677 35,997 Goodwill 5,227 5,227 Right-of-use assets 2,822 1,901 Deferred tax assets 6,309 7,496 Other noncurrent assets 1,310 1,173 Total assets $ 104,834 $ 98,531 LIABILITIES AND SHAREHOLDERS' EQUITY: Current liabilities: Accounts payable $ 1,834 $ 2,127 Accrued expenses and other current liabilities 2,518 2,881 Current portion of operating lease liabilities 411 406 Deferred revenue 806 712 Dividend payable - 4,181 Total current liabilities 5,569 10,307 Noncurrent operating lease liabilities 2,520 1,592 Other noncurrent liabilities 539 - Total liabilities 8,628 11,899 Shareholders' equity: Preferred stock—$0.001 par value, 10,000,000 shares authorized, and 0 shares issued and outstanding, as of June 30, 2025 and December 31, 2024 - - Common stock—$0.001 par value, 200,000,000 shares authorized, 13,976,841 and 13,936,329 shares issued and outstanding, as of June 30, 2025 and December 31, 2024 14 14 Additional paid-in capital 90,936 87,488 Retained earnings (accumulated deficit) 5,256 (870 ) Total shareholders' equity 96,206 86,632 Total liabilities and shareholders' equity $ 104,834 $ 98,531 RED VIOLET, CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in thousands, except share data)(unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue $ 21,774 $ 19,056 $ 43,777 $ 36,567 Costs and expenses(1): Cost of revenue (exclusive of depreciation and amortization) 3,501 3,455 7,162 7,211 Sales and marketing expenses 5,622 4,406 11,029 8,118 General and administrative expenses 7,253 5,750 13,427 11,540 Depreciation and amortization 2,647 2,377 5,197 4,647 Total costs and expenses 19,023 15,988 36,815 31,516 Income from operations 2,751 3,068 6,962 5,051 Interest income 339 314 647 679 Income before income taxes 3,090 3,382 7,609 5,730 Income tax expense 404 745 1,483 1,309 Net income $ 2,686 $ 2,637 $ 6,126 $ 4,421 Earnings per share: Basic $ 0.19 $ 0.19 $ 0.44 $ 0.32 Diluted $ 0.18 $ 0.19 $ 0.42 $ 0.31 Weighted average shares outstanding: Basic 14,018,629 13,780,074 14,008,385 13,888,569 Diluted 14,553,282 14,051,466 14,528,789 14,129,262 (1) Share-based compensation expense in each category: Sales and marketing expenses $ 193 $ 158 $ 388 $ 296 General and administrative expenses 1,634 1,235 3,035 2,499 Total $ 1,827 $ 1,393 $ 3,423 $ 2,795 RED VIOLET, CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts in thousands)(unaudited) Six Months Ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 6,126 $ 4,421 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,197 4,647 Share-based compensation expense 3,423 2,795 Write-off of long-lived assets 2 - Provision for bad debts 274 224 Noncash lease expenses 257 272 Deferred income tax expense 1,187 1,081 Changes in assets and liabilities: Accounts receivable (2,024 ) (1,052 ) Prepaid expenses and other current assets (510 ) (370 ) Other noncurrent assets (162 ) (616 ) Accounts payable (293 ) 338 Accrued expenses and other current liabilities (863 ) (1,351 ) Deferred revenue 94 (93 ) Operating lease liabilities (220 ) (274 ) Net cash provided by operating activities 12,488 10,022 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (252 ) (117 ) Capitalized costs included in intangible assets (4,984 ) (4,738 ) Net cash used in investing activities (5,236 ) (4,855 ) CASH FLOWS FROM FINANCING ACTIVITIES: Taxes paid related to net share settlement of vesting of restricted stock units (727 ) (403 ) Repurchases of common stock - (5,853 ) Dividend payable (4,181 ) - Net cash used in financing activities (4,908 ) (6,256 ) Net increase (decrease) in cash and cash equivalents $ 2,344 $ (1,089 ) Cash and cash equivalents at beginning of period 36,504 32,032 Cash and cash equivalents at end of period $ 38,848 $ 30,943 SUPPLEMENTAL DISCLOSURE INFORMATION: Cash paid for interest $ - $ - Cash paid for income taxes $ 681 $ 439 Share-based compensation capitalized in intangible assets $ 752 $ 882 Retirement of treasury stock $ 727 $ 6,164 Right-of-use assets obtained in exchange of operating lease liabilities $ 1,153 $ - Use and Reconciliation of Non-GAAP Financial Measures Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF. Adjusted EBITDA is a financial measure equal to net income, the most directly comparable financial measure based on GAAP, excluding interest income, income tax expense, depreciation and amortization, share-based compensation expense, litigation costs, acquisition-related costs, and write-off of long-lived assets. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. Adjusted net income is a non-GAAP financial measure equal to net income, the most directly comparable financial measure based on US GAAP, adjusted to exclude share-based compensation expense and amortization of share-based compensation capitalized in intangible assets, and to include the tax effect of adjustments. We define adjusted earnings per share as adjusted net income divided by the weighted average shares outstanding. We define adjusted gross profit as gross profit plus depreciation and amortization of certain intangible assets, and adjusted gross margin as adjusted gross profit as a percentage of revenue. We define FCF as net cash provided by operating activities reduced by purchase of property and equipment, and capitalized costs included in intangible assets. The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted EBITDA: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2025 2024 2025 2024 Net income $ 2,686 $ 2,637 $ 6,126 $ 4,421 Interest income (339 ) (314 ) (647 ) (679 ) Income tax expense 404 745 1,483 1,309 Depreciation and amortization 2,647 2,377 5,197 4,647 Share-based compensation expense 1,827 1,393 3,423 2,795 Litigation costs 4 (27 ) 13 - Acquisition-related costs 370 - 370 7 Write-off of long-lived assets 1 - 3 - Adjusted EBITDA $ 7,600 $ 6,811 $ 15,968 $ 12,500 Revenue $ 21,774 $ 19,056 $ 43,777 $ 36,567 Net income margin 12 % 14 % 14 % 12 % Adjusted EBITDA margin 35 % 36 % 36 % 34 % The following is a reconciliation of net income, the most directly comparable US GAAP financial measure, to adjusted net income: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands, except share data) 2025 2024 2025 2024 Net income $ 2,686 $ 2,637 $ 6,126 $ 4,421 Share-based compensation expense 1,827 1,393 3,423 2,795 Amortization of share-based compensation capitalized in intangible assets 413 286 822 561 Tax effect of adjustments(1) (809 ) (425 ) (1,422 ) (733 ) Adjusted net income $ 4,117 $ 3,891 $ 8,949 $ 7,044 Earnings per share: Basic $ 0.19 $ 0.19 $ 0.44 $ 0.32 Diluted $ 0.18 $ 0.19 $ 0.42 $ 0.31 Adjusted earnings per share: Basic $ 0.29 $ 0.28 $ 0.64 $ 0.51 Diluted $ 0.28 $ 0.28 $ 0.62 $ 0.50 Weighted average shares outstanding: Basic 14,018,629 13,780,074 14,008,385 13,888,569 Diluted 14,553,282 14,051,466 14,528,789 14,129,262 (1) The tax effect of adjustments is calculated using the expected federal and state statutory tax rate. The expected federal and state income tax rate was approximately 26.00% for the three and six months ended June 30, 2025, and 25.75% for the three and six months ended June 30, 2024. The following is a reconciliation of gross profit, the most directly comparable US GAAP financial measure, to adjusted gross profit: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2025 2024 2025 2024 Revenue $ 21,774 $ 19,056 $ 43,777 $ 36,567 Cost of revenue (exclusive of depreciation and amortization) (3,501 ) (3,455 ) (7,162 ) (7,211 ) Depreciation and amortization related to cost of revenue (2,595 ) (2,322 ) (5,095 ) (4,536 ) Gross profit 15,678 13,279 31,520 24,820 Depreciation and amortization of certain intangible assets(1) 2,560 2,322 5,012 4,536 Adjusted gross profit $ 18,238 $ 15,601 $ 36,532 $ 29,356 Gross margin 72 % 70 % 72 % 68 % Adjusted gross margin 84 % 82 % 83 % 80 %(1) Depreciation and amortization of certain intangible assets primarily consists of the amortization of capitalized internal-use software development costs, which are included within intangible assets and amortized over their estimated useful lives. The following is a reconciliation of net cash provided by operating activities, the most directly comparable US GAAP financial measure, to FCF: Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2025 2024 2025 2024 Net cash provided by operating activities $ 7,487 $ 5,717 $ 12,488 $ 10,022 Less: Purchase of property and equipment (202 ) (52 ) (252 ) (117 ) Capitalized costs included in intangible assets (2,515 ) (2,411 ) (4,984 ) (4,738 ) Free cash flow $ 4,770 $ 3,254 $ 7,252 $ 5,167 In order to assist readers of our consolidated financial statements in understanding the operating results that management uses to evaluate the business and for financial planning purposes, we present non-GAAP measures of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF as supplemental measures of our operating performance. We believe they provide useful information to our investors as they eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. In addition, we use them as an integral part of our internal reporting to measure the performance and operating strength of our business. We believe adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF are relevant and provide useful information frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours and are indicators of the operational strength of our business. We believe adjusted EBITDA eliminates the uneven effect of considerable amounts of non-cash depreciation and amortization, share-based compensation expense and the impact of other non-recurring items, providing useful comparisons versus prior periods or forecasts. Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue. We believe adjusted net income provides additional means of evaluating period-over-period operating performance by eliminating certain non-cash expenses and other items that might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. Adjusted net income is a non-GAAP financial measure equal to net income, adjusted to exclude share-based compensation expense and amortization of share-based compensation capitalized in intangible assets, and to include the tax effect of adjustments. We define adjusted earnings per share as adjusted net income divided by the weighted average shares outstanding. Our adjusted gross profit is a measure used by management in evaluating the business's current operating performance by excluding the impact of prior historical costs of assets that are expensed systematically and allocated over the estimated useful lives of the assets, which may not be indicative of the current operating activity. We define adjusted gross profit as gross profit plus depreciation and amortization of certain intangible assets. We believe adjusted gross profit provides useful information to our investors by eliminating the impact of certain non-cash depreciation and amortization, and primarily the amortization of software developed for internal use, providing a baseline of our core operating results that allow for analyzing trends in our underlying business consistently over multiple periods. Adjusted gross margin is calculated as adjusted gross profit as a percentage of revenue. We believe FCF is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business. FCF is a measure used by management to understand and evaluate the business's operating performance and trends over time. FCF is calculated by using net cash provided by operating activities, less purchase of property and equipment, and capitalized costs included in intangible assets. Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF are not intended to be performance measures that should be regarded as an alternative to, or more meaningful than, financial measures presented in accordance with US GAAP. In addition, FCF is not intended to represent our residual cash flow available for discretionary expenses and is not necessarily a measure of our ability to fund our cash needs. The way we measure adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF may not be comparable to similarly titled measures presented by other companies, and may not be identical to corresponding measures used in our various agreements. SUPPLEMENTAL METRICS The following metrics are intended as a supplement to the financial statements found in this release and other information furnished or filed with the SEC. These supplemental metrics are not necessarily derived from any underlying financial statement amounts. We believe these supplemental metrics help investors understand trends within our business and evaluate the performance of such trends quickly and effectively. In the event of discrepancies between amounts in these tables and the Company's historical disclosures or financial statements, readers should rely on the Company's filings with the SEC and financial statements in the Company's most recent earnings release. We intend to periodically review and refine the definition, methodology and appropriateness of each of these supplemental metrics. As a result, metrics are subject to removal and/or changes, and such changes could be material. (Unaudited) (Dollars in thousands) Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Customer metrics IDI - billable customers(1) 7,769 7,875 8,241 8,477 8,743 8,926 9,241 9,549 FOREWARN - users(2) 168,356 185,380 236,639 263,876 284,967 303,418 325,336 346,671 Revenue metrics Contractual revenue %(3) 79 % 82 % 78 % 74 % 77 % 77 % 74 % 77 % Gross revenue retention %(4) 94 % 92 % 93 % 94 % 94 % 96 % 96 % 97 % Other metrics Employees - sales and marketing 65 71 76 86 93 95 90 92 Employees - support 9 9 10 10 11 11 11 11 Employees - infrastructure 27 27 29 27 29 28 29 29 Employees - engineering 47 51 51 56 58 57 62 63 Employees - administration 25 25 25 25 26 25 24 28 (1) We define a billable customer of IDI as a single entity that generated revenue in the last three months of the period. Billable customers are typically corporate organizations. In most cases, corporate organizations will have multiple users and/or departments purchasing our solutions, however, we count the entire organization as a discrete customer.(2) We define a user of FOREWARN as a unique person that has a subscription to use the FOREWARN service as of the last day of the period. A unique person can only have one user account.(3) Contractual revenue % represents revenue generated from customers pursuant to pricing contracts containing a monthly fee and any additional overage divided by total revenue. Pricing contracts are generally annual contracts or longer, with auto renewal.(4) Gross revenue retention is defined as the revenue retained from existing customers, net of reinstated revenue, and excluding expansion revenue. Revenue is measured once a customer has generated revenue for six consecutive months. Revenue is considered lost when all revenue from a customer ceases for three consecutive months; revenue generated by a customer after the three-month loss period is defined as reinstated revenue. Gross revenue retention percentage is calculated on a trailing twelve-month basis. The numerator of which is revenue lost during the period due to attrition, net of reinstated revenue, and the denominator of which is total revenue based on an average of total revenue at the beginning of each month during the period, with the quotient subtracted from one. Our gross revenue retention calculation excludes revenue from idiVERIFIED, which is purely transactional and currently represents less than 3% of total revenue.
Yahoo
02-08-2025
- Business
- Yahoo
Imperial Oil Ltd (IMO) Q2 2025 Earnings Call Highlights: Record Production Amidst Declining Earnings
Net Income: $949 million, down $184 million from Q2 2024 and down $339 million from Q1 2025. Cash Flow from Operations: Nearly $1.5 billion, with $2.4 billion of cash on hand at the end of the quarter. Upstream Earnings: $664 million, down $67 million from Q1 2025. Downstream Earnings: $322 million, down $262 million from Q1 2025. Chemical Earnings: $21 million, down $10 million from Q1 2025. Capital Expenditures: $473 million, $11 million higher than Q2 2024. Dividends Paid: $367 million in Q2 2025. Upstream Production: 427,000 oil equivalent barrels per day, up 9,000 barrels per day from Q1 2025 and up 23,000 barrels per day from Q2 2024. Kearl Production: 275,000 barrels per day gross, up 19,000 barrels per day from Q1 2025. Kearl Unit Cash Costs: USD18.86 per barrel, decreased by nearly USD2 per barrel from Q1 2025. Cold Lake Production: 145,000 barrels per day, down 9,000 barrels per day from Q1 2025. Syncrude Production: 77,000 barrels per day, up 4,000 barrels per day from Q1 2025. Refinery Throughput: 376,000 barrels per day, reflecting a utilization of 87%. Petroleum Product Sales: 480,000 barrels per day, up 25,000 barrels per day from Q1 2025. Warning! GuruFocus has detected 7 Warning Signs with TAC. Release Date: August 01, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Imperial Oil Ltd (IMO) generated cash flow from operations of nearly $1.5 billion and ended the quarter with approximately $2.4 billion of cash on hand. Upstream production for the quarter averaged 427,000 oil equivalent barrels per day, marking the highest second quarter production in over 30 years. The company completed significant project milestones, including the construction of a renewable diesel facility at Strathcona, which began production in July. Kearl set a second quarter production record, averaging 275,000 barrels per day gross, and achieved a decrease in unit cash costs. Imperial Oil Ltd (IMO) plans to accelerate share repurchases through its NCIB, aiming to complete the program by year-end, demonstrating a commitment to returning surplus cash to shareholders. Negative Points Net income for the second quarter was $949 million, down $184 million from the second quarter of 2024, primarily due to lower upstream realizations. Downstream earnings of $322 million were down $262 million from the first quarter, reflecting lower margin capture. Chemical business earnings were $21 million, down $10 million from the first quarter, driven by soft polyethylene margins. Refinery throughput was lower due to higher unplanned downtime and impacts from planned turnarounds at Strathcona and Nanticoke. The company experienced a decrease in net income sequentially, down $339 million from the first quarter of 2025, primarily driven by lower upstream realizations and downstream margin capture. Q & A Highlights Q: Can you explain the decision to accelerate the NCIB and your confidence in completing it without leveraging up? A: We are confident in accelerating the NCIB due to our strong cash flow, current cash on hand, and commodity prices. We plan to complete the program using free cash flow without leveraging our balance sheet. This aligns with our strategy of returning surplus cash to shareholders, having returned $20 billion since 2020, with $15 billion in share buybacks. - John Whelan, CEO Q: What insights have you gained from deploying the autonomous haul system (AHS) at your sites? A: The AHS has been a success, reducing unit cash costs by about $1 per barrel. We are optimizing the fleet further and exploring additional automation opportunities, such as robotic fueling and inspection. This is part of our broader technology strategy, which is core to our operations. - John Whelan, CEO Q: Could you elaborate on the renewable diesel production and its optimization? A: The renewable diesel facility at Strathcona is operational, and we are optimizing production based on feedstock and hydrogen supply. We have sufficient gray hydrogen for startup, and the ramp-up will depend on further hydrogen availability. The facility will operate year-round, leveraging proprietary technology for lower emissions. - John Whelan, CEO and Scott Maloney, VP Downstream Q: What are the plans for the SAGD projects at Cold Lake, and how do they provide a competitive advantage? A: We are advancing solvent-assisted SAGD (SA-SAGD) projects, with Grand Rapids performing above expectations. The Mahkeses SA-SAGD project is set for 2029, aiming for 30,000 barrels per day. These projects lower costs and emissions, leveraging decades of experience at Cold Lake. - John Whelan, CEO and Cheryl Gomez-Smith, SVP Upstream Q: How did Kearl's performance exceed expectations, and what does this imply for future production? A: Kearl's performance was boosted by better ore grade, increased material movement, and improved hydrotransport lines. The turnaround was shorter than expected, contributing to higher production. We remain on track with our guidance, expecting strong performance in the second half of the year. - John Whelan, CEO and Cheryl Gomez-Smith, SVP Upstream For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
