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Yahoo
2 hours ago
- Business
- Yahoo
Grove Collaborative to review strategic options as Q2 revenue declines
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Dive Brief: As Grove Collaborative handles shareholder calls to go private, its second quarter revenue declined 15.5% year over year to $44 million, according to a company press release Thursday. Net loss improved to $3.6 million from $10.1 million the year before, mainly due to lower interest and operating expenses. The household and personal care products company reported operating expenses decreased 20.3% to $27.9 million and gross margin for the quarter reached 55.4%. Grove's total direct-to-consumer orders declined 12.6% to 640,000 and DTC active customers dropped nearly 11% to 664,000. The company mostly maintained its full-year outlook of mid-single-digit to low double-digit revenue drop, which was revised while providing Q1 earnings in May. Dive Insight: Grove's Q2 revenue fall comes about a month after receiving a letter to the board from HumanCo Investments, a company shareholder calling for a review of strategic alternatives. 'We share HumanCo's view that Grove is significantly undervalued in the public markets and that our brand, platform and customer relationships represent strategic assets that would be extremely difficult to replicate' Grove CEO Jeff Yurcisin said on a Thursday call with analysts. In its board letter, HCI pushed for a potential 'sale to a larger strategic company or financial sponsor, or a transformative merger with a profitable company.' The group, which says it's associated with investors that own more than 5% of Grove's common shares, believes Grove has untapped potential and is undervalued in the public market with a lack of investor relevance. Yurcisin told analysts on the call that Grove has agreed to create a working group that includes members of HCI in order to evaluate strategic options. Contributing to some of Grove's Q2 revenue decline were disruptions from an e-commerce platform migration that started in March. 'This move enabled more flexibility and efficiency going forward, but created some short-term operational friction that extended into the second quarter' Yurcisin noted on the call. 'We believe the largest known issues were resolved by the end of the second quarter and beginning of the third quarter, but we continue to monitor potential ongoing impacts to ensure we're optimizing the experience and taking full advantage of the opportunity to scale.' Adding the Grove's obstacles is its effort to regain compliance with the New York Stock Exchange. In May, Grove received a notice of non-compliance from the NYSE noting the requirement of an average global market capitalization of no less than '$50 million over a consecutive 30 trading-day period and stockholders' equity of not less than $50 million,' per a press release at the time. Grove's interim CFO Tom Siragusa told analysts on the call that the NYSE has since accepted a submitted compliance plan, giving it 18 months to regain compliance. This is not Grove's first encounter with warning notices from the NYSE. The company in 2022 received a delisting notice after it was no longer in compliance with the minimum average share price. Recommended Reading Chewy posts 3.1% sales gain in Q1, announces $500M share repurchase program 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
Yahoo
17 hours ago
- Business
- Yahoo
Interim report for 1 January
Company Announcement Copenhagen, 12 August 2025No. 47/2025 Interim report for 1 January – 30 June 2025 Continued robust financial development. Second tranche of the share buyback programme increased by DKK 500 million to DKK 1,750 million Highlights Financial performance Organic growth was 3.8% in Q2 2025 (Q2 2024: 5.8%), and 4.1% in H1 2025 (H1 2024: 5.9%), mainly driven by price increases and projects and above-base work, partially offset by net negative contract wins as previously communicated. Operating margin before other items (excl. IAS 29) improved to 4.2% in H1 2025 from 4.0% in H1 2024 as a result of continued operational improvements across the Group. Free cash flow improved to DKK (0.5) billion in H1 2025 (H1 2024: DKK (1.1) billion) mainly due to increased operating profit and improved changes in working capital. Business update ISS secured six new large key account contracts, each with annual revenue above DKK 100 million, alongside several smaller and mid-sized local IFS contracts. In addition, a number of existing contracts were extended, several with significant scope expansions of above DKK 100 million. Strategy execution developed according to plan, where especially commercial model, workforce management and finance shared service centre gained momentum. The final oral hearing in the arbitration proceedings with Deutsche Telekom took place in mid July. The parties now await a ruling by the Tribunal. Capital distribution and outlook On 27 May 2025, ISS established a Euro-Commercial Paper (ECP) programme to enable more efficient and timely access to short-term financing. The programme has a maximum principal value of EUR 900 million. On 11 August 2025, ISS concluded the first DKK 1,250 million tranche of its 2025 share buyback programme. The second tranche has been increased by DKK 500 million to DKK 1,750 million in accordance with our capital allocation policy. The total programme will thereby amount to DKK 3.0 billion. The 2025 outlook is unchanged for all three financial KPIs; organic growth of 4 – 6%, operating margin above 5% and free cash flow above DKK 2.4 billion. Kasper Fangel Group CEO, ISS A/S, says: 'Over the past quarter, we've maintained a steadfast focus on executing our strategic priorities - driving customer-centric growth, improving efficiency, and becoming the world's leading frontline employer. I'm pleased to see this reflected in continued robust financial performance, including an improved operating margin. So far this year, we've announced expansions and wins of 14 contracts, each with additional annual revenue of more than DKK 100 million. Additionally, with our strong capital position, we've decided to increase our share buyback programme by DKK 500 million. We still have more to accomplish, but I'm pleased with the current focus and speed of execution across our organisation. This collective drive is not only fuelling our momentum - it is laying the foundation for sustained success.' For investor enquiriesMichael Vitfell-Rasmussen, Head of Group Investor Relations, +45 53 53 87 25Anne Sophie Riis, Senior Investor Relations Manager, +45 30 52 94 68 For media enquiriesCharlotte Holm, Head of External Communication, +45 41 76 19 89 ISS is a leading, global provider of workplace and facility service solutions. In partnership with customers, ISS drives the engagement and well-being of people, minimises the impact on the environment, and protects and maintains property. ISS brings all of this to life through a unique combination of data, insight and service excellence at offices, factories, airports, hospitals and other locations across the globe. ISS has more than 325,000 employees around the globe, who we call 'placemakers'. In 2024, Group revenue was DKK 83.7 billion. For more information on the ISS Group, visit ISS Announcement - H1 2025 Interim Report ISS AS H1 2025Error 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
Yahoo
5 days ago
- Business
- Yahoo
July earnings update: Boeing, UnitedHealth Group, Starbucks, Coca-Cola and BlackRock
This story was originally published on To receive daily news and insights, subscribe to our free daily newsletter. Earnings calls, loved by some CFOs and dreaded by others, allow finance leaders and their fellow executives to verbalize their organization's progress. Each month, compiles interesting insights shared by CFOs during these calls for The CFO Earnings Dispatch series. These insights include statements about their company, analysis of financial data and answers to analysts' questions. For July, we highlight CFO comments from Boeing, UnitedHealth Group, General Dynamics, Starbucks, The Cheesecake Factory, Tractor Supply, Coca-Cola and BlackRock. 1. Boeing Market Cap: $170.53 billion Date of Call: July 29 Boeing's recent financial performance shows how CFOs can stabilize operations and narrow losses during challenging times by leaning on delivery execution and steady working capital improvements. In his final earnings call in the position, CFO Brian West said free cash flow usage of $200 million in Q2 was significantly better than expected, driven by 150 commercial deliveries that included 13 777 jets, nearly double the usual volume. West projected approximately $3 billion in free cash flow for the year, assuming no major disruptions. The company also held firm on its strategy to reintegrate Spirit AeroSystems and normalize inventory as production stabilizes. "Margins at [Boeing Commercial Airplanes] were negative 6.6% in Q1, improved to negative 5.1% in Q2 and we expect to continue improving quarter by quarter, although still negative for the year," West said. "Long term, there's nothing we see that would suggest we can't get back to historical margin levels." 2. UnitedHealth Group Market Cap: $224.32 billion Date of Call: July 29 UnitedHealth Group is adjusting expectations for 2025 as elevated medical costs, exchange-related headwinds and slower OptumHealth growth weigh on results. Outgoing CFO John Rex reported Q2 adjusted earnings per share of $4.08, down from the prior year, and revised full-year guidance to at least $16 per share. The updated outlook includes $1.6 billion in potential settlement items, with $600 million recognized in Q2 and another $1 billion anticipated. Rex noted a full-year medical care ratio of 89.25%, up from the previously forecasted 86.5%, driven by higher patient morbidity in Affordable Care Act exchanges and changes tied to Medicare and the Inflation Reduction Act. "As we look toward 2026 and beyond, we expect efforts underway to steadily improve our performance," Rex said, pointing to renewed focus on pricing, operational discipline and longer-term investment in AI and modernization. 3. Starbucks Market Cap: $101.46 billion Date of Call: July 29 Starbucks CFO Cathy Smith said the company is focused on building a more durable cost structure to support its long-term turnaround. Four months into the role, Smith said the company is investing in foundational changes, including a $500 million labor investment while working across the P&L to find efficiencies. 'We are, as we shared even last quarter, working across the entire P&L,' Smith said. 'From cost of goods sold to operating expenses to G&A, the team is taking on both short-term and long-term cost structure efficiency work.' She emphasized the importance of building sustainability into the turnaround. 'We're working on 2026, 2027 and 2028,' she said. 'We're putting in the more durable sustainable activities to make sure we don't just address it once, but we actually address it long term.' Smith said the company is focused on setting the foundation for future earnings growth. 'What's really exciting though is when we start to grow, we'll actually like what comes through to the bottom line.' 4. Cheesecake Factory Market Cap: $3.09 billion Date of Call: July 29 Matthew Clark, CFO of Cheesecake Factory, said stable consumer trends and execution across concepts supported margin gains and stronger-than-expected results in the second quarter. Revenue reached $956 million with an adjusted net income margin of 5.8%, exceeding the company's guidance range. Clark highlighted improved labor productivity, lower commodity costs and disciplined pricing as key drivers of margin performance. 'We feel really good about where we're sitting today,' Clark said. 'The environment has been very, very steady for us… and I think it's a testament to our execution as well as the brands that we have.' The company plans to open up to 25 new restaurants this year across its Cheesecake Factory, North Italia, Flower Child and other Fox Restaurants concepts. Clark said Flower Child, the company's health-forward fast-casual concept, is delivering mature unit margins of 20.4%, with average unit volume approaching $5 million and returns in the mid-30% range. North Italia locations are also performing well, with new units opening above expectations and mature margins reaching 18.2%. Clark noted menu pricing will decline in the second half, driven by new lower-priced offerings. 'The real pricing is probably going to be more like 2% to 2.5% in terms of what the consumer feels,' he said, emphasizing the company's focus on perceived value and traffic recovery. 5. Tractor Supply Market Cap: $31.87 billion Date of Call: July 24 Kurt Barton, CFO of Tractor Supply, said the company delivered record sales and net income in Q2, with signs of momentum continuing into the back half of the year. Comps were positive across six of seven regions, and June saw gains in all regions, supported by a delayed but accelerated spring selling season. 'We see demand solid. Our customers [are] in a strong position,' Barton said. 'The expectation for the second half of the year would be balanced between both ticket and transactions.' Gross margin expanded by 31 basis points to 36.9%, aided by product cost management and efficiencies across the supply chain. Barton said tariff impacts have begun to flow through direct imports and will create modest pressure in the second half, though average unit retail has not yet been materially affected. 'We believe we can still maintain even at these elevated comps… the operating margin rate that we gave in our guide,' he said. The company returned $196 million to shareholders in the quarter and reduced its full-year repurchase outlook, citing a 'more measured pace' of capital deployment. Barton said Tractor Supply remains focused on expense control, with selling, general and administrative expenses expected to ease in the second half. 6. General Dynamics Market Cap: $84.92 billion Date of Call: July 23 General Dynamics reported strong order activity and cash performance in the second quarter, with record backlog and improved free cash flow conversion. CFO Kim Kuryea said the company booked $28 billion in orders, resulting in a company-wide book-to-bill ratio of 2.2, led by marine systems. Aerospace also reported a 1.3x book-to-bill despite increased aircraft deliveries. Backlog reached a record $103.7 billion, up 14% from a year ago, with total estimated contract value exceeding $160 billion. Operating cash flow for the quarter was $1.6 billion, with free cash flow of $1.4 billion and a cash conversion rate of 138%. The company expects full-year conversion to be approximately 90%, with the majority of cash generation in the fourth quarter. Kuryea noted full-year cash projections do not yet include potential benefits from recent tax legislation reversing the amortization of R&D expenses, which may provide additional cash flow depending on timing. Capital expenditures were $198 million, or 1.5% of sales, with full-year capex expected to be slightly above 2% of sales. The company paid $402 million in dividends, did not repurchase shares during the quarter, and reduced net debt by $1.2 billion to $7.2 billion. Interest expense is projected to be $330 million for the full year. 7. Coca-Cola Market Cap: $299.88 billion Date of Call: July 22 Coca-Cola CFO John Murphy said the company delivered strong margin expansion and free cash flow growth in the second quarter, even as unit case volume declined 1% due to soft June results. Organic revenue grew 5%, driven by price/mix gains, while comparable gross margin expanded by 80 basis points and operating margin rose 190 basis points. 'We expect to deliver operating leverage in the second half of the year, albeit at a slightly lower rate than we had previously flagged,' Murphy said. He added that about one-third of the company's underlying margin expansion came from faster realization of productivity initiatives. While the company reaffirmed its full-year guidance of 5% to 6% organic revenue growth, it now expects comparable EPS to grow 3%, down slightly due to a five-point currency headwind. Murphy said Coca-Cola plans to use its strong first-half performance to 'invest some of our efficiencies' into growth for the back half of the year. He noted the updated outlook reflects a softening of earlier currency-related pressure and that Coca-Cola would provide more detail on 2026 in its October call. Though not addressed on the earnings call, the company has separately indicated plans to begin using cane sugar in U.S. beverages, a potential shift with implications for costs, marketing and consumer preferences. 8. BlackRock Market Cap: $182.97 billion Date of Call: July 15 BlackRock and its CFO Martin Small reported 6% organic base fee growth in Q2 2025, marking the company's fourth consecutive quarter above 5%. Assets under management are also at a record $12.5 trillion. Net inflows totaled $116 billion, excluding a $52 billion institutional index redemption. Small said the firm is seeing sustained growth across ETFs, its investment technology platform Aladdin, cash management, private markets and digital assets. The acquisition of HPS Investment Partners added $165 billion of AUM and is expected to contribute $450 million in revenue in Q3. Preqin added $60 million to Q2 technology services revenue. Subscription revenue rose 26% year-over-year. Small said the firm remains on track toward its goal of $400 billion in private market fundraising between 2025 and 2030. Operating margin declined 80 basis points to 43.3%, mainly due to lower performance fees and acquisition-related expenses. Small said controllable expenses are aligned with revenue growth and that recent acquisitions are expected to be self-funding. Dividend growth is expected to track operating and net income as part of BlackRock's 2030 strategy. Recommended Reading The CFO Earnings Dispatch
Yahoo
7 days ago
- Business
- Yahoo
Paylocity Holding Corp (PCTY) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Recurring Revenue Growth (Q4): 14% increase. Total Revenue Growth (Q4): 12% increase. Total Revenue (Fiscal '25): $1.6 billion. Average Revenue per Client (Fiscal '25): $35,300, an 8% increase from fiscal '24. Client Base Growth: 7% increase to 41,650 clients. Adjusted EBITDA (Q4): $130.7 million, 32.6% margin. Adjusted EBITDA (Fiscal '25): $583 million, 36.5% margin. Free Cash Flow Margin (Fiscal '25): 21.5%, a 12% increase on a dollar basis from fiscal '24. R&D Investment (Fiscal '25): 14.3% of revenue, a 14% increase from fiscal '24. Sales and Marketing Expenses (Fiscal '25): 21% of revenue. Net Income (Q4): $48.6 million. Net Income (Fiscal '25): $227.1 million. Cash and Equivalents (End of Fiscal '25): $398.1 million. Share Repurchase (Fiscal '25): 800,000 shares at an average price of $190.16 per share, totaling $150 million. Warning! GuruFocus has detected 4 Warning Signs with CHGG. Release Date: August 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Paylocity Holding Corp (NASDAQ:PCTY) reported a recurring revenue growth of 14% and total revenue growth of 12% in Q4, with fiscal year '25 recurring revenue growth at 15% and total revenue growth at 14%. The company launched Paylocity for Finance, expanding its platform into the office of the CFO, which is expected to drive further growth in average revenue per client. Paylocity Holding Corp (NASDAQ:PCTY) expanded its sales force by 8% to 952 sales reps, positioning the company for continued durable recurring revenue growth. The company achieved a free cash flow margin of 21.5% for fiscal '25, representing a 12% increase on a dollar basis from fiscal '24. Paylocity Holding Corp (NASDAQ:PCTY) maintained a strong revenue retention rate of over 92% in fiscal '25, indicating consistent client satisfaction and loyalty. Negative Points The integration of Airbase is still ongoing, with further phases planned, indicating potential future resource allocation and integration challenges. Sales and marketing expenses saw a significant jump quarter over quarter, attributed to year-end timing and hiring, which could impact short-term profitability. The company's guidance for fiscal '26 includes assumptions of 100 basis point interest rate cuts, which may not materialize as expected, potentially affecting financial outcomes. The adoption of Paylocity for Finance is expected to take longer than typical HCM modules due to its higher price point and larger organizational commitment. The company's growth in fiscal '26 is projected to slow slightly, with recurring revenue expected to grow by approximately 9%, compared to 15% in fiscal '25. Q & A Highlights Q: How should we view the demand environment and customer acquisition for fiscal '26? A: Toby Williams, President and CEO, noted that the demand environment remained stable throughout fiscal '25, with consistent growth in both units and average revenue per user (ARPU). The company is pleased with its sales execution and expects similar stability in fiscal '26. Q: Can you provide insights into the integration of Airbase and the focus on Paylocity for Finance? A: Steven Beauchamp, Executive Chairman, explained that the integration of Airbase is being done in phases, with the first phase completed. The company is now focusing on training its sales force to promote the integrated product offering, which is expected to enhance cross-selling opportunities. Q: What are the expectations for free cash flow in fiscal '26? A: Ryan Glenn, CFO, expressed confidence in expanding free cash flow margins, noting potential tailwinds from new tax legislation that could reduce federal taxes. The company aims to continue expanding free cash flow margins in fiscal '26 and beyond. Q: What is the expected impact of Paylocity for Finance on client penetration and pricing? A: Steven Beauchamp mentioned that while it may take longer to achieve penetration rates similar to other HCM modules, the revenue per client is expected to be higher. The goal is to reach 10% to 20% penetration over time, with pricing based on a per-employee, per-user model. Q: How is Paylocity leveraging AI in its operations and product offerings? A: Steven Beauchamp highlighted that AI is increasingly part of client conversations and is embedded across various modules. The company is focused on expanding AI capabilities to enhance client experiences and drive operational efficiencies. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
05-08-2025
- Business
- Yahoo
Heidrick & Struggles International Inc (HSII) Q2 2025 Earnings Call Highlights: Strong ...
Revenue: Approximately $317 million, a 14% increase compared to Q2 2024. Adjusted EBITDA: Improved by $5 million to $34 million. Adjusted EBITDA Margin: Expanded 40 basis points to 10.7%. Salary and Benefits: Increased 17.6% from the prior year quarter. General and Administrative Expenses: Improved by $4.3 million to $42.2 million, or 13.3% of net revenue. R&D Spend: $6 million, or 1.9% of net revenue. Executive Search Revenue: Grew 13% to $238 million. On-Demand Talent Revenue: Increased 14% to $48 million. Heidrick Consulting Revenue: Increased 17% year over year to $31 million. Adjusted Net Income: $18.1 million. Adjusted Diluted EPS: $0.85, 27% above last year's performance. Cash Position: $400 million, up $103 million from June 2024. Q3 Revenue Outlook: Expected to be within a range of $295 million to $315 million. Warning! GuruFocus has detected 4 Warning Signs with HSII. Release Date: August 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Heidrick & Struggles International Inc (NASDAQ:HSII) exceeded the high end of their revenue range for Q2 2025, marking a 14% increase compared to Q2 2024. All three reported solution lines saw growth, contributing to profit through outstanding work in solving client problems. The company is focused on growing its talent base and leveraging cutting-edge analytic technology to enhance productivity. HSII reported strong cash position of $400 million, up $103 million from the previous year, providing flexibility for strategic execution. Executive search revenue grew 13% to $238 million, with notable regional performance increases in America, Europe, and APAC. Negative Points Economic and geopolitical uncertainties remain, potentially affecting client demand and project initiation. Operating expenses increased, with salary and benefits rising 17.6% from the prior year quarter. Margins are expected to cycle down in the second half of the year due to hiring plans and associated expenses. There are intermittent pockets of hesitance among clients due to industry-specific implications of tariffs or tax policy. The company anticipates potential project delays and pockets of hesitancy among clients due to the uncertain macro environment. Q & A Highlights Q: Can you provide more details on the hiring plans for the second half of the year and the availability of suitable candidates? A: Thomas Monahan, CEO, explained that growing the team is crucial for business growth, focusing on retaining and developing talent. The company sees significant opportunities to expand with existing and new clients. Nirupam Sinha, CFO, added that the hiring will not be a large number but is essential for setting up future growth. The hiring process is expected to be smooth throughout the year. Q: How does the company plan to use cash beyond internal investments, and have there been any changes in prioritization? A: Thomas Monahan, CEO, stated that the company sees significant opportunities in the market despite geopolitical complexities. Nirupam Sinha, CFO, mentioned that cash usage includes managing earn-out payments and potential acquisitions or lift-outs, which are part of the hiring strategy. Q: Can you elaborate on the Q3 revenue guidance and the factors influencing the range? A: Thomas Monahan, CEO, noted that the guidance reflects typical summer seasonality and macroeconomic uncertainties. The high end of the range assumes continued demand and acceleration in consulting and on-demand talent services. The low end considers potential project delays due to macro uncertainties. Q: Is the strong executive search productivity of $2.3 million annualized sustainable, and does it influence hiring plans? A: Nirupam Sinha, CFO, indicated that while the $2.3 million is above the historical range, the trailing 12-month average remains around $2 million. The high productivity highlights the demand for services and supports the decision to continue hiring. Q: How will hiring investments impact margins in the second half, and will profitability in non-search segments continue to improve? A: Nirupam Sinha, CFO, stated that investments are spread across the business, with synergies across service lines. The non-search segments showed positive profitability trends, and the company expects continued annual progression towards long-term targets. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
