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Business Wire
21 hours ago
- Business
- Business Wire
Alliant Energy Announces Second Quarter 2025 Results
MADISON, Wis.--(BUSINESS WIRE)--Alliant Energy Corporation (NASDAQ: LNT) today announced U.S. generally accepted accounting principles (GAAP) consolidated and non-GAAP consolidated unaudited earnings per share (EPS) for the three months ended June 30 as follows: 'Our solid financial performance this quarter underscores the resilience of our regulated utility model and our ability to advance key operational and strategic initiatives while positioning us for long-term success,' said Lisa Barton, Alliant Energy President and CEO. Utilities and Corporate Services - Alliant Energy's Utilities and Alliant Energy Corporate Services, Inc. (Corporate Services) operations generated $0.74 per share of GAAP EPS in the second quarter of 2025, which was $0.41 per share higher than the second quarter of 2024. The primary drivers of higher EPS were items in 2024 not normally associated with ongoing operations and described below in the discussion of non-GAAP adjustments, higher revenue requirements from capital investments, and estimated temperature impacts on retail electric and gas sales. These items were partially offset by higher depreciation and financing expenses. Non-utility and Parent - Alliant Energy's Non-utility and Parent operations generated ($0.10) per share of GAAP EPS in the second quarter of 2025, which was $0.07 per share lower than the second quarter of 2024. The lower EPS was primarily driven by lower equity income from corporate venture investments, higher financing expense and timing of income taxes. Details regarding GAAP EPS variances between the second quarters of 2025 and 2024 for Alliant Energy are as follows: Non-GAAP adjustments in 2024 - IPL's retail electric rate review for the October 2024 through September 2025 forward-looking Test Period filed with the IUC in October 2023 included a request for continued recovery of and a return on the remaining net book value of IPL's retired Lansing Generating Station through 2037. In June 2024, IPL reached a partial nonunanimous settlement agreement with certain stakeholders, which the IUC subsequently approved in September 2024. The agreement included a return of the remaining net book value of Lansing, but did not include a return on the remaining net book value of Lansing. As a result, in the second quarter of 2024, a pre-tax non-cash charge of $60 million, or $0.17 per share, was recorded. In the second quarter of 2024, the U.S. Environmental Protection Agency enacted the revised Coal Combustion Residuals Rule, which significantly expands the scope of regulation to include coal ash ponds at sites that no longer produce electricity and inactive landfills. As a result, an initial pre-tax non-cash charge of $20 million, or $0.06 per share, was recorded for additional asset retirement obligations. Revenue requirements from capital investments - In September 2024, IPL received an order from the IUC authorizing annual base rate increases of $185 million and $10 million for its retail electric and gas rate reviews, respectively, covering the October 2024 through September 2025 forward-looking Test Period. IPL recognized a $0.13 per share increase in the second quarter of 2025 due to higher revenue requirements from increasing rate base, including investments in solar generation. In December 2023, Wisconsin Power and Light Company (WPL) received an order from the Public Service Commission of Wisconsin authorizing an annual base rate increase of $60 million for its retail electric rate review covering the 2025 forward-looking Test Period. WPL recognized a $0.06 per share increase in the second quarter of 2025 due to higher revenue requirements from increasing rate base, including investments in solar generation and energy storage. Estimated temperature impacts on retail electric and gas sales - Retail electric and gas sales increased an estimated $0.02 and decreased $0.02 per share in the second quarters of 2025 and 2024, respectively, due to impacts of temperatures on customer demand when compared to normal temperatures. 2025 Earnings Guidance Alliant Energy is reaffirming its consolidated ongoing EPS guidance for 2025 of $3.15 - $3.25. Assumptions for Alliant Energy's 2025 EPS guidance include, but are not limited to: Ability of IPL and WPL to earn their authorized rates of return Normal temperatures in its utility service territories Stable economy and resulting implications on utility sales Execution of capital expenditure plans including achievement of targeted in-service dates Execution of cost controls and financing plans Consolidated effective tax rate of (31%) The 2025 earnings guidance does not include the impacts of any material non-cash valuation adjustments, regulatory-related charges or credits, reorganizations or restructurings, future changes in laws, regulations or regulatory policies, adjustments made to deferred tax assets and liabilities from changes in forecasted state apportionment and valuation allowances including further corporate tax rate changes in Iowa, changes in credit loss liabilities related to guarantees, pending lawsuits and disputes, settlement charges related to pension and other postretirement benefits plans, federal and state income tax audits and other Internal Revenue Service proceedings, impacts from changes to the authorized return on equity for ATC LLC, or changes in GAAP and tax methods of accounting that may impact the reported results of Alliant Energy. Earnings Conference Call A conference call to review the second quarter 2025 results is scheduled for Friday, August 8, 2025 at 9 a.m. central time. Alliant Energy President and Chief Executive Officer Lisa Barton, and Executive Vice President and Chief Financial Officer Robert Durian will host the call. The conference call is open to the public and can be accessed in two ways. Interested parties may listen to the call by dialing 800-549-8228 (Toll-Free) or 646-564-2877 (International), conference ID 78071. Interested parties may also listen to a webcast at In conjunction with the information in this earnings announcement and the conference call, Alliant Energy posted supplemental materials on its website. An archive of the webcast will be available on the Company's website at for 12 months. About Alliant Energy Corporation Alliant Energy is the parent company of two public utility companies - Interstate Power and Light Company and Wisconsin Power and Light Company - and of Alliant Energy Finance, LLC, the parent company of Alliant Energy's non-utility operations. Alliant Energy, whose core purpose is to serve customers and build stronger communities, is an energy-services provider with utility subsidiaries serving approximately 1,000,000 electric and 430,000 natural gas customers. Providing its customers in the Midwest with regulated electricity and natural gas service is the Company's primary focus. Alliant Energy, headquartered in Madison, Wisconsin, is a component of the S&P 500 and is traded on the Nasdaq Global Select Market under the symbol LNT. For more information, visit the Company's website at Forward-Looking Statements This press release includes forward-looking statements. These forward-looking statements can be identified by words such as 'forecast,' 'expect,' 'guidance,' or other words of similar import. Similarly, statements that describe future financial performance or plans or strategies are forward-looking statements. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements. Actual results could be materially affected by the following factors, among others: IPL's and WPL's ability to obtain adequate and timely rate relief to allow for, among other things, the recovery of and/or the return on costs, including fuel costs, operating costs, transmission costs, capacity costs, costs of generation projects including such costs that are incurred prior to regulatory approval or exceed initial estimates, deferred expenditures, deferred tax assets, tax expense, interest expense, capital expenditures, marginal costs to service new customers, and remaining costs related to electric generating units (EGUs) that have been or may be permanently closed and certain other retired assets, environmental remediation costs, and decreases in sales volumes, as well as earning their authorized rates of return, payments to their parent of expected levels of dividends, the impact of rate design on current and potential customers and demand for energy in their service territories, and the ability to obtain regulatory approval with acceptable conditions for individual customer rates for large load growth customers; the impact of IPL's retail electric base rate moratorium; the ability to complete construction of generation and energy storage projects by planned in-service dates and within the cost targets set by regulators due to cost increases of and access to materials, equipment and commodities, which could result from tariffs, duties or other assessments, inflation, labor issues or supply shortages, the ability to successfully resolve warranty issues or contract disputes and the ability to obtain adequate generator interconnection agreements to connect the new projects to Midcontinent Independent System Operator, Inc. (MISO) in a timely manner; weather effects on utility sales volumes and operations; the direct or indirect effects resulting from cybersecurity incidents or attacks on Alliant Energy, IPL, WPL, or their suppliers, contractors and partners, or responses to such incidents; the impact of customer- and third party-owned generation, including alternative electric suppliers, in IPL's and WPL's service territories on system reliability, operating expenses and customers' demand for electricity; economic conditions and the impact of business or facility closures in IPL's and WPL's service territories; the ability and cost to provide sufficient generation and the ability of ITC Midwest LLC and ATC LLC to provide sufficient transmission capacity for potential load growth, including significant new commercial or industrial customers, such as data centers; the ability of potential large load growth customers to timely construct new facilities, as well as the resulting higher system load demand by expected levels and timeframes; the impact of energy efficiency, franchise retention and customer disconnects on sales volumes and operating income; the impact that price changes may have on IPL's and WPL's customers' demand for electric and gas services and their ability to pay their bills; changes in the price of delivered natural gas, transmission, purchased electric energy, purchased electric capacity and delivered coal, particularly during elevated market prices, and any resulting changes to counterparty credit risk, due to shifts in supply and demand caused by market conditions, regulations and MISO's seasonal resource adequacy process; the ability to obtain regulatory approval for construction projects with acceptable conditions; the ability to achieve the expected level of tax benefits for renewable generation and energy storage projects based on tax guidelines, timely beginning of construction and in-service dates, sourcing permissible amounts of construction support from entities with ties to certain foreign countries, compliance with prevailing wage and apprenticeship requirements, project costs and the level of electricity output generated by qualifying generating facilities, and the ability to efficiently utilize the renewable generation and energy storage project tax benefits to achieve IPL's authorized rate of return and for the benefit of IPL's and WPL's customers; federal and state regulatory or governmental actions, including the impact of legislation, Treasury regulations, executive orders, interpretations and guidance, and changes in public policy, including changes impacting renewable tax credits; the ability to utilize tax credits generated to date, and those that may be generated in the future, before they expire, as well as the ability to transfer tax credits that may be generated in the future at adequate pricing; the impacts of changes in the tax code, including tax rates, minimum tax rates, adjustments made to deferred tax assets and liabilities, and changes impacting the availability of and ability to transfer renewable tax credits, including preserving the qualification of any future tax credits; disruptions to ongoing operations and the supply of materials, services, equipment and commodities needed to continue to operate and maintain existing assets and to construct capital projects, which may result from geopolitical issues, tariffs, supplier manufacturing constraints, regulatory requirements, labor issues or transportation issues, and thus affect the ability to meet capacity requirements and result in increased capacity expense; inflation and higher interest rates; continued access to the capital markets on competitive terms and rates, and the actions of credit rating agencies; the future development of technologies related to electrification, and the ability to reliably store and manage electricity; employee workforce factors, including the ability to hire and retain employees with specialized skills, impacts from employee retirements, changes in key executives, ability to create desired corporate culture, collective bargaining agreements and negotiations, work stoppages or restructurings; disruptions in the supply and delivery of natural gas, purchased electricity and coal; changes to the creditworthiness of, or performance of obligations by, counterparties with which Alliant Energy, IPL and WPL have contractual arrangements, including large load growth customers, participants in the energy markets and fuel suppliers and transporters; the impact of penalties or third-party claims related to, or in connection with, a failure to maintain the security of personally identifiable information, including associated costs to notify affected persons and to mitigate their information security concerns; impacts that terrorist attacks may have on Alliant Energy's, IPL's and WPL's operations and recovery of costs associated with restoration activities, or on the operations of Alliant Energy's investments; changes to MISO's resource adequacy process establishing capacity planning reserve margin and capacity accreditation requirements that may impact how and when new and existing generating facilities, including IPL's and WPL's additional solar generation, may be accredited with energy capacity, and may require IPL and WPL to adjust their current resource plans, to add resources to meet the requirements of MISO's process, or procure capacity in the market whereby such costs might not be recovered in rates; any material post-closing payments related to any past asset divestitures, including the transfer of renewable tax credits, which could result from, among other things, indemnification agreements, warranties, guarantees or litigation; issues associated with environmental remediation and environmental compliance, including compliance with all current environmental and emissions laws, regulations and permits and future changes in environmental laws and regulations, including the Coal Combustion Residuals Rule, Cross-State Air Pollution Rule and federal, state or local regulations for emissions reductions, including greenhouse gases, from new and existing fossil-fueled EGUs under the Clean Air Act, and litigation associated with environmental requirements; increased pressure from customers, investors and other stakeholders to more rapidly reduce greenhouse gases emissions; the timely development of technologies, innovations and advancements to provide cost effective alternatives to traditional energy sources; the ability to defend against environmental claims brought by state and federal agencies, such as the U.S. Environmental Protection Agency and state natural resources agencies, or third parties, such as the Sierra Club, and the impact on operating expenses of defending and resolving such claims; the direct or indirect effects resulting from breakdown or failure of equipment in the operation of electric and gas distribution systems, such as mechanical problems, disruptions in telecommunications, technological problems, and explosions or fires, and compliance with electric and gas transmission and distribution safety regulations, including regulations promulgated by the Pipeline and Hazardous Materials Safety Administration; issues related to the availability and operations of EGUs and energy storage facilities, including start-up risks, breakdown or failure of equipment, fires, availability of warranty coverage and successful resolution of warranty issues or contract disputes for equipment breakdowns or failures, performance below expected or contracted levels of output or efficiency, operator error, employee safety, transmission constraints, compliance with mandatory reliability standards and risks related to recovery of resulting incremental operating, capacity, fuel-related and capital costs through rates; impacts that excessive heat, excessive cold, storms, wildfires, or natural disasters may have on Alliant Energy's, IPL's and WPL's operations and construction activities, and recovery of costs associated with restoration activities, or on the operations of Alliant Energy's investments; Alliant Energy's ability to sustain its dividend payout ratio goal; changes to costs of providing benefits and related funding requirements of pension and other postretirement benefits plans due to the market value of the assets that fund the plans, economic conditions, financial market performance, interest rates, timing and form of benefits payments, life expectancies and demographics; material changes in employee-related benefit and compensation costs, including settlement losses related to pension plans; risks associated with operation and ownership of non-utility holdings; changes in technology that alter the channels through which customers buy or utilize Alliant Energy's, IPL's or WPL's products and services; impacts on equity income from unconsolidated investments from changes in valuations of the assets held, as well as potential changes to ATC LLC's authorized return on equity; impacts of IPL's future tax benefits from Iowa rate-making practices, including deductions for repairs expenditures and cost of removal obligations, allocation of mixed service costs and state depreciation, and recoverability of the associated regulatory assets from customers, when the differences reverse in future periods; current or future litigation, regulatory investigations, proceedings or inquiries; reputational damage from negative publicity, protests, fines, penalties and other negative consequences resulting in regulatory and/or legal actions; the direct or indirect effects resulting from pandemics; the effect of accounting standards issued periodically by standard-setting bodies; the ability to successfully complete tax audits and changes in tax accounting methods with no material impact on earnings and cash flows; and other factors listed in the '2025 Earnings Guidance' section of this press release. For more information about potential factors that could affect Alliant Energy's business and financial results, refer to Alliant Energy's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (SEC), including the sections therein titled 'Risk Factors,' and its other filings with the SEC. Without limitation, the expectations with respect to 2025 earnings guidance in this press release are forward-looking statements and are based in part on certain assumptions made by Alliant Energy, some of which are referred to in the forward-looking statements. Alliant Energy cannot provide any assurance that the assumptions referred to in the forward-looking statements or otherwise are accurate or will prove to be correct. Any assumptions that are inaccurate or do not prove to be correct could have a material adverse effect on Alliant Energy's ability to achieve the estimates or other targets included in the forward-looking statements. The forward-looking statements included herein are made as of the date hereof and, except as required by law, Alliant Energy undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Use of Non-GAAP Financial Measures To provide investors with additional information regarding Alliant Energy's financial results, this press release includes reference to certain non-GAAP financial measures. These measures include income and EPS for the three and six months ended June 30, 2024 excluding the asset valuation charge related to IPL's Lansing Generating Station and asset retirement obligation charges for steam assets at IPL. Alliant Energy believes these non-GAAP financial measures are useful to investors because they provide an alternate measure to better understand and compare across periods the operating performance of Alliant Energy without the distortion of items that management believes are not normally associated with ongoing operations, and also provides additional information about Alliant Energy's operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance. Alliant Energy's management also uses income, as adjusted, to determine performance-based compensation. In addition, Alliant Energy included in this press release IPL; WPL; Corporate Services; Utilities and Corporate Services; ATC Holdings; and Non-utility and Parent EPS for the three and six months ended June 30, 2025 and 2024. Alliant Energy believes these non-GAAP financial measures are useful to investors because they facilitate an understanding of segment performance and trends, and provide additional information about Alliant Energy's operations on a basis consistent with the measures that management uses to manage its operations and evaluate its performance. Reconciliation of the non-GAAP financial measures included in this press release to the most directly comparable GAAP financial measures are included in the earnings summaries that follow. Earnings (in millions): GAAP Income (Loss) Adjustments Non-GAAP Income (Loss) 2025 2024 2025 2024 2025 2024 IPL $ 98 $ 18 $ — $ 59 $ 98 $ 77 WPL 87 64 — — 87 64 Corporate Services 5 3 — — 5 3 Subtotal for Utilities and Corporate Services 190 85 — 59 190 144 ATC Holdings 10 9 — — 10 9 Non-utility and Parent (26 ) (7 ) — — (26 ) (7 ) Alliant Energy Consolidated $ 174 $ 87 $ — $ 59 $ 174 $ 146 Expand The following tables provide a summary of Alliant Energy's results for the six months ended June 30: 2025 2024 2025 2024 2025 2024 IPL $ 0.81 $ 0.32 $ — $ 0.23 $ 0.81 $ 0.55 WPL 0.77 0.61 — — 0.77 0.61 Corporate Services 0.03 0.02 — — 0.03 0.02 Subtotal for Utilities and Corporate Services 1.61 0.95 — 0.23 1.61 1.18 ATC Holdings 0.08 0.07 — — 0.08 0.07 Non-utility and Parent (0.19 ) (0.07 ) — — (0.19 ) (0.07 ) Alliant Energy Consolidated $ 1.50 $ 0.95 $ — $ 0.23 $ 1.50 $ 1.18 Expand Earnings (in millions): GAAP Income (Loss) Adjustments Non-GAAP Income (Loss) 2025 2024 2025 2024 2025 2024 IPL $ 209 $ 81 $ — $ 59 $ 209 $ 140 WPL 198 156 — — 198 156 Corporate Services 8 7 — — 8 7 Subtotal for Utilities and Corporate Services 415 244 — 59 415 303 ATC Holdings 20 18 — — 20 18 Non-utility and Parent (48 ) (17 ) — — (48 ) (17 ) Alliant Energy Consolidated $ 387 $ 245 $ — $ 59 $ 387 $ 304 Expand ALLIANT ENERGY CORPORATION Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (in millions, except per share amounts) Revenues: Electric utility $ 851 $ 789 $ 1,703 $ 1,580 Gas utility 76 69 316 273 Other utility 11 10 25 24 Non-utility 23 26 44 48 961 894 2,088 1,925 Operating expenses: Electric production fuel and purchased power 150 138 325 301 Electric transmission service 151 147 308 300 Cost of gas sold 30 25 167 139 Other operation and maintenance: Energy efficiency costs 10 9 20 23 Non-utility Travero 15 16 31 33 Asset valuation charge for IPL's Lansing Generating Station — 60 — 60 Asset retirement obligation charge for steam assets at IPL — 20 — 20 Other 143 132 276 260 Depreciation and amortization 208 188 420 376 Taxes other than income taxes 31 29 62 61 738 764 1,609 1,573 Operating income 223 130 479 352 Other (income) and deductions: Interest expense 124 108 243 215 Equity income from unconsolidated investments, net (10 ) (15 ) (23 ) (31 ) Allowance for funds used during construction (23 ) (19 ) (41 ) (38 ) Other 1 2 4 4 92 76 183 150 Income before income taxes 131 54 296 202 Income tax benefit (43 ) (33 ) (91 ) (43 ) Net income attributable to Alliant Energy common shareowners $ 174 $ 87 $ 387 $ 245 Weighted average number of common shares outstanding: Basic 256.9 256.4 256.8 256.3 Diluted 257.3 256.7 257.3 256.6 Earnings per weighted average common share attributable to Alliant Energy common shareowners: Basic $ 0.68 $ 0.34 $ 1.51 $ 0.96 Diluted $ 0.68 $ 0.34 $ 1.50 $ 0.95 Expand ALLIANT ENERGY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2025 December 31, 2024 (in millions) ASSETS: Current assets: Cash and cash equivalents $ 329 $ 81 Other current assets 1,145 1,103 Property, plant and equipment, net 19,376 18,701 Investments 666 639 Other assets 2,234 2,190 Total assets $ 23,750 $ 22,714 LIABILITIES AND EQUITY: Current liabilities: Current maturities of long-term debt $ 1,373 $ 1,171 Commercial paper 292 558 Other current liabilities 914 986 Long-term debt, net (excluding current portion) 9,642 8,677 Other liabilities 4,384 4,318 Alliant Energy Corporation common equity 7,145 7,004 Total liabilities and equity $ 23,750 $ 22,714 Expand ALLIANT ENERGY CORPORATION Six Months Ended June 30, 2025 2024 (in millions) Cash flows from operating activities: Cash flows from operating activities excluding accounts receivable sold to a third party $ 762 $ 823 Accounts receivable sold to a third party (270 ) (261 ) Net cash flows from operating activities 492 562 Cash flows used for investing activities: Construction and acquisition expenditures: Utility business (976 ) (870 ) Other (89 ) (90 ) Cash receipts on sold receivables 198 306 Proceeds from sales of partial ownership interests in West Riverside Energy Center and Solar Facility — 123 Other (27 ) (2 ) Net cash flows used for investing activities (894 ) (533 ) Cash flows from financing activities: Common stock dividends (261 ) (246 ) Proceeds from issuance of long-term debt 1,162 969 Payments to retire long-term debt — (305 ) Net change in commercial paper (266 ) (423 ) Other 15 6 Net cash flows from financing activities 650 1 Net increase in cash, cash equivalents and restricted cash 248 30 Cash, cash equivalents and restricted cash at beginning of period 81 63 Cash, cash equivalents and restricted cash at end of period $ 329 $ 93 KEY FINANCIAL AND OPERATING STATISTICS Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Utility electric sales (000s of megawatt-hours) Residential 1,632 1,629 3,502 3,384 Commercial 1,514 1,496 3,115 3,020 Industrial 2,565 2,635 5,084 5,167 Industrial - co-generation customers 215 188 399 366 Retail subtotal 5,926 5,948 12,100 11,937 Sales for resale: Wholesale 651 653 1,342 1,333 Bulk power and other 1,176 1,087 2,554 2,757 Other 14 14 28 29 Total 7,767 7,702 16,024 16,056 Utility retail electric customers (at June 30) Residential 855,362 849,224 Commercial 146,521 146,003 Industrial 2,359 2,411 Total 1,004,242 997,638 Utility gas sold and transported (000s of dekatherms) Residential 3,190 2,838 17,229 14,662 Commercial 2,534 2,472 11,500 10,001 Industrial 390 420 1,207 1,185 Retail subtotal 6,114 5,730 29,936 25,848 Transportation / other 27,159 29,102 58,165 63,009 Total 33,273 34,832 88,101 88,857 Utility retail gas customers (at June 30) Residential 385,395 382,409 Commercial 45,150 44,981 Industrial 314 318 Total 430,859 427,708 Expand Estimated operating income increases (decreases) from impacts of temperatures (in millions) - Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Electric $ 7 ($ 1 ) $ — ($ 20 ) Gas (1 ) (3 ) (4 ) (14 ) Total temperature impact $ 6 ($ 4 ) ($ 4 ) ($ 34 ) Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 Normal 2025 2024 Normal Heating degree days (HDDs) (a) Cedar Rapids, Iowa (IPL) 535 499 678 3,775 3,349 4,126 Madison, Wisconsin (WPL) 841 597 799 4,208 3,576 4,325 Cooling degree days (CDDs) (a) Cedar Rapids, Iowa (IPL) 313 290 256 318 290 258 Madison, Wisconsin (WPL) 224 210 201 224 210 203 Expand (a) HDDs and CDDs are calculated using a simple average of the high and low temperatures each day compared to a 65 degree base. Normal degree days are calculated using a rolling 20-year average of historical HDDs and CDDs. Expand
Business Wire
a day ago
- Business
- Business Wire
Motorola Solutions Reports Second-Quarter 2025 Financial Results
CHICAGO--(BUSINESS WIRE)--Motorola Solutions, Inc. (NYSE: MSI) today reported its earnings results for the second quarter of 2025. 'Q2 was outstanding, with record second-quarter revenue and earnings,' said Greg Brown, chairman and CEO, Motorola Solutions. 'We continue to see robust demand for our safety and security solutions, highlighted by record Q2 orders and our increased revenue, earnings and operating cash flow expectations for the year.' KEY FINANCIAL RESULTS (presented in millions, except per share data and percentages) Q2 2025 Q2 2024 % Change Sales $2,765 $2,628 5 % GAAP Operating Earnings $692 $644 7 % % of Sales 25.0 % 24.5 % EPS $3.04 $2.60 17 % Non-GAAP* Operating Earnings $818 $758 8 % % of Sales 29.6 % 28.8 % EPS $3.57 $3.24 10 % Products and Systems Integration Segment Sales $1,653 $1,658 — % GAAP Operating Earnings $363 $379 (4) % % of Sales 22.0 % 22.9 % Non-GAAP* Operating Earnings $442 $445 (1) % % of Sales 26.7 % 26.8 % Software and Services Segment Sales $1,112 $970 15 % GAAP Operating Earnings $329 $265 24 % % of Sales 29.6 % 27.3 % Non-GAAP* Operating Earnings $376 $313 20 % % of Sales 33.8 % 32.3 % * Non-GAAP financial information excludes the after-tax impact of approximately $0.53 per diluted share related to highlighted items, share-based compensation expense and intangible assets amortization expense. Details regarding these non-GAAP adjustments and the use of non-GAAP measures are included later in this news release. Expand OTHER SELECTED FINANCIAL RESULTS Revenue - Sales were $2.8 billion, up 5% from the year-ago quarter driven by growth in North America and International. Revenue from acquisitions was $39 million and foreign currency tailwinds were $9 million in the quarter. The Software and Services segment grew 15%, driven by growth in Land Mobile Radio Communications ("LMR"), Video Security and Access Control ("Video") and Command Center. Revenue for the Products and Systems Integration segment was flat versus the prior year. Operating margin - GAAP operating margin was 25.0% of sales, up from 24.5% in the year-ago quarter. Non-GAAP operating margin was 29.6% of sales, up 80 basis points from 28.8% in the year-ago quarter. The increase in both GAAP and non-GAAP operating margins was driven by higher sales and improved operating leverage. Taxes - The GAAP effective tax rate during the quarter was 24.3%, versus 23.3% in the year-ago quarter driven by lower benefits from share-based compensation recognized in the current year. The non-GAAP effective tax rate was 23.5%, versus 23.6% the year-ago quarter. Cash flow - Operating cash flow was $272 million, compared to $180 million in the year-ago quarter and free cash flow was $224 million, up from $112 million in the year-ago quarter. Both the operating cash flow and free cash flow for the quarter increased primarily due to higher earnings and improved working capital. Capital allocation - During the quarter, the company repurchased $218 million of common stock, paid $182 million in cash dividends and incurred $48 million of capital expenditures. Additionally, the company entered into a new five-year $2.25 billion revolving credit facility during the quarter, which replaces the prior $2.25 billion revolving credit facility that was scheduled to mature in March 2026. Subsequent to the quarter, the company acquired Silvus for $4.4 billion of upfront consideration, which was primarily funded through $2 billion of new long-term senior notes issued in Q2 and $1.5 billion of new term loans. The remaining consideration of $900 million was settled through a combination of cash on hand and issuance of commercial paper. Backlog - The company ended the quarter with backlog of $14.1 billion, up 1% or $150 million from the year-ago quarter driven by record Q2 orders. Products and Systems Integration segment backlog was down $902 million, or 21%, driven primarily by strong LMR shipments. Software and Services segment backlog was up $1.0 billion, or 11%, driven by strong demand across all three technologies, partially offset by revenue recognition from the U.K. Home Office. NOTABLE WINS AND ACHIEVEMENTS Software and Services $44M Command Center order for a U.S. state and local customer $29M P25 system upgrade and LMR services order for the City of Chicago $12M LMR cybersecurity order for the State of Victoria, Australia $11M LMR services order for the State of New Mexico $9M LMR services order for a U.S. federal customer Products and Systems Integration $82M P25 system upgrade for a tri-county system in the St. Louis region $30M P25 device order for the City of Miami, FL $22M P25 system upgrade for the State of Michigan $15M fixed video order for a U.S. federal customer $11M P25 device order for the Las Vegas Metro Police Department BUSINESS OUTLOOK Third quarter 2025 - The company expects revenue growth of approximately 7% compared to the third quarter of 2024 and non-GAAP EPS between $3.82 to $3.87 per share. This assumes approximately 169 million of fully diluted shares and a non-GAAP effective tax rate of approximately 24%. Full-year 2025 - The company now expects revenue of approximately $11.65 billion or 7.7% growth, up from its prior guidance of approximately $11.4 billion or 5.5% growth, and non-GAAP EPS between $14.88 and $14.98, up from its prior guidance of $14.64 and $14.74 per share. This outlook assumes approximately 169 million of fully diluted shares and a non-GAAP effective tax rate of approximately 23%. Our full-year outlook also includes $185 million of expected revenue related to Silvus. In addition, we are increasing our operating cash flow expectations to $2.75 billion for the full year, inclusive of approximately $75 million of one-time transaction expenses related to the Silvus acquisition. The company has not quantitatively reconciled its guidance for forward-looking non-GAAP metrics to their most comparable GAAP measures because the company does not provide specific guidance for the various reconciling items as certain items that impact these measures have not occurred, are out of the company's control, or cannot be reasonably predicted. Accordingly, a reconciliation to the most comparable GAAP financial metric is not available without unreasonable effort. Please note that the unavailable reconciling items could significantly impact the company's results. RECENT EVENTS MACROECONOMIC ENVIRONMENT UPDATE The current global tariff environment is complex and evolving. In early 2025, the United States initiated a series of trade actions which imposed new tariffs and increased existing tariffs on goods imported from various countries, contributing to a global trade landscape subject to evolving tariffs, import/export regulations, trade barriers and trade disputes. As a result, the company continues to observe elevated volatility and uncertainty around the global supply chain. The company engages with global suppliers across a diverse network of locations around the world. The company continues to work with our global supply base to mitigate its exposure to the risks to global reciprocal (and sectoral) tariffs that have developed, and which may continue to develop, in order to ensure supply continues at levels in order to meet the company's current customer demand. As a result of the dynamic environment, the company expects increased costs on materials and components in 2025, which the company currently expects to substantially mitigate. CONFERENCE CALL AND WEBCAST Motorola Solutions will host its quarterly conference call beginning at 4 p.m. U.S. Central Time (5 p.m. U.S. Eastern Time) on Thursday, August 7. The conference call will be webcast live at An archive of the webcast will be available for a limited period of time thereafter. CONSOLIDATED GAAP RESULTS (presented in millions, except per share data) A comparison of results from operations is as follows: Q2 2025 Q2 2024 Net sales $2,765 $2,628 Gross margin $1,413 $1,339 Operating earnings $692 $644 Amounts attributable to Motorola Solutions, Inc. common stockholders Net earnings $513 $443 Diluted EPS $3.04 $2.60 Weighted average diluted common shares outstanding 168.8 170.3 Expand USE OF NON-GAAP FINANCIAL INFORMATION In addition to the results presented in accordance with accounting principles generally accepted in the U.S. ("GAAP") included in this news release, Motorola Solutions also has included non-GAAP measurements of results, including free cash flow, non-GAAP operating earnings, non-GAAP EPS, non-GAAP operating margin, non-GAAP tax rate, and organic revenue. The company has provided these non-GAAP measurements to help investors better understand its core operating performance, enhance comparisons of core operating performance from period-to-period and allow better comparisons of its operating performance to that of its competitors. Among other things, management uses these operating results, excluding the identified items, to evaluate the performance of its businesses and to evaluate results relative to certain incentive compensation targets. Management uses operating results excluding these items because it believes these measurements enable it to make better period-to-period evaluations of the financial performance of its core business operations. The non-GAAP measurements are intended only as a supplement to the comparable GAAP measurements and the company compensates for the limitations inherent in the use of non-GAAP measurements by using GAAP measures in conjunction with the non-GAAP measurements. As a result, investors should consider these non-GAAP measurements in addition to, and not in substitution for or as superior to, GAAP measurements. Reconciliations: Details and reconciliations of such non-GAAP measurements to the corresponding GAAP measurements can be found at the end of this news release. Free cash flow: Free cash flow represents net cash provided by operating activities less capital expenditures. The company believes that free cash flow is useful to investors as the basis for comparing its performance and coverage ratios with other companies in the company's industries, although the company's measure of free cash flow may not be directly comparable to similar measures used by other companies. This measure is also used as a component of incentive compensation. Organic revenue: Organic revenue reflects net sales calculated under GAAP excluding net sales from acquired business owned for less than four full quarters. The company believes organic revenue provides useful information for evaluating the periodic growth of the business on a consistent basis and provides for a meaningful period-to-period comparison and analysis of trends in the business. Non-GAAP operating earnings, non-GAAP EPS and non-GAAP operating margin each excludes highlighted items, including share-based compensation expenses and intangible assets amortization expense, as follows: Highlighted items: The company has excluded the effects of highlighted items including, but not limited to, acquisition-related transaction fees, tangible and intangible asset impairments, reorganization of business charges, certain non-cash pension adjustments, legal settlements and other contingencies, gains and losses on investments and businesses, Hytera-related legal expenses, gains and losses on the extinguishment of debt and the income tax effects of significant tax matters, from its non-GAAP operating expenses and net income measurements because the company believes that these historical items do not reflect expected future operating earnings or expenses and do not contribute to a meaningful evaluation of the company's current operating performance or comparisons to the company's past operating performance. For the purposes of management's internal analysis over operating performance, the company uses financial statements that exclude highlighted items, as these charges do not contribute to a meaningful evaluation of the company's current operating performance or comparisons to the company's past operating performance. Hytera-Related Legal Expenses: In 2017, the company filed a complaint against Hytera Communications Corporation Limited of Shenzhen, China; Hytera America, Inc.; and Hytera Communications America (West), Inc. (collectively, 'Hytera'), in the U.S. District Court for the Northern District of Illinois (the 'District Court'), alleging trade secret theft and copyright infringement, and seeking injunctive relief. In 2020, a jury decided in the company's favor and awarded the company $543.7 million, plus $51.1 million in pre-judgment interest and $2.6 million in costs, as well as $34.2 million in attorneys' fees. Subsequently, the District Court ordered Hytera to pay the company a forward-looking reasonable royalty on products that use the company's stolen trade secrets, setting royalty rates for Hytera's sale of relevant products from July 1, 2019 forward. The District Court then ordered Hytera to make royalty payments into a third-party escrow, while it reviewed Hytera's motion to modify the royalty order, which the District Court eventually denied. Hytera refused to make all of its royalty payments. The company filed a motion to hold Hytera in civil contempt for failing to make every royalty payment, which the District Court granted in 2023. As a result, on September 1, 2023, Hytera made a payment of $56 million into the third-party escrow, in addition to subsequent de minimis quarterly royalty payments between October 2022 and November 2024. The aggregate amount paid into escrow, of approximately $61 million, was released to the company on November 26, 2024 and was recorded as a gain within Other charges within the Consolidated Statement of Operations. Following the initial District Court judgment in the company's favor, both parties appealed to the U.S. Court of Appeals for the Seventh Circuit (the "Court of Appeals"). On July 2, 2024, the Court of Appeals affirmed the District Court's award of $407.4 million in damages under the Defend Trade Secrets Act, directed the District Court to recalculate and reduce its award of $136.3 million in copyright infringement damages, and instructed the District Court to reconsider its denial of the company's request for an injunction. In all other respects, the Court of Appeals affirmed the judgment of the District Court. On October 4, 2024, the Court of Appeals denied Hytera's motion for rehearing. The case was remanded to the District Court for further action per the Court of Appeals' decision. On January 2, 2025, Hytera filed a petition for writ of certiorari with the Supreme Court of the United States, which was subsequently denied by the Supreme Court on February 24, 2025. The issues of copyright recalculation and injunction are currently briefed. The District Court is seeking to schedule a hearing on these issues for sometime later in 2025. On March 4, 2025, Hytera made a partial payment toward the judgment of approximately $10 million, and an additional payment of approximately $10 million on April 25, 2025. Both payments were recorded as a gain within Other charges within the Consolidated Statement of Operations. The company continues to seek collection of the judgment through the ongoing legal process. In 2024, the parties engaged in competing litigation in the District Court and a court in China related to the possible continued use by Hytera of the company's trade secrets in Hytera's currently shipping products. On April 2, 2024, the District Court held Hytera in civil contempt, and issued a worldwide sales injunction of certain Hytera products and a daily fine for Hytera's failure to withdraw its competing litigation in China. On April 16, 2024, the Court of Appeals granted Hytera's motion for an emergency stay of the contempt sanctions, pending its review of the District Court's various orders related to the competing litigation and contempt sanctions. The District Court held hearings in August 2024, concerning whether Hytera's currently shipping products continue to misuse the company's trade secrets and copyrighted source code. The issue is currently under consideration by the District Court. Management typically considers legal expenses associated with defending the company's intellectual property as 'normal and recurring' and accordingly, Hytera-related legal expenses were included in both the company's GAAP and non-GAAP operating income for fiscal years 2017, 2018 and 2019. The company anticipates further expenses associated with Hytera-related litigation; however, as of 2020, the company believes that these expenses are no longer a part of the 'normal and recurring' legal expenses incurred to operate its business. In addition, as any contingent or actual gains associated with the Hytera litigation are recognized, they will be similarly excluded from the company's non-GAAP operating income, consistent with the company's treatment of the $15 million of proceeds realized in 2022, $61 million realized in 2024 and $20 million realized in 2025. The company believes after the jury award, the presentation of excluding both Hytera-related legal expenses and gains related to awards better aligns with how management evaluates the company's ongoing underlying business performance. Share-based compensation expenses: The company has excluded share-based compensation expenses from its non-GAAP operating expenses and net income measurements. Although share-based compensation is a key incentive offered to the company's employees and the company believes such compensation contributed to the revenue earned during the periods presented and also believes it will contribute to the generation of future period revenues, the company continues to evaluate its performance excluding share-based compensation expenses primarily because it represents a significant non-cash expense. Share-based compensation expenses will recur in future periods. Intangible assets amortization expense: The company has excluded intangible assets amortization expense from its non-GAAP operating expenses and net income measurements primarily because it represents a non-cash expense and because the company evaluates its performance excluding intangible assets amortization expense. Amortization of intangible assets is consistent in amount and frequency but is significantly affected by the timing and size of the company's acquisitions. Investors should note that the use of intangible assets contributed to the company's revenues earned during the periods presented and will contribute to the company's future period revenues as well. Intangible assets amortization expense will recur in future periods. FORWARD LOOKING STATEMENTS This news release contains "forward-looking statements" within the meaning of applicable federal securities law. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and generally include words such as 'believes,' 'expects,' 'intends,' 'anticipates,' 'estimates' and similar expressions. The company can give no assurance that any actual or future results or events discussed in these statements will be achieved. Any forward-looking statements represent the company's views only as of today and should not be relied upon as representing the company's views as of any subsequent date. Readers are cautioned that such forward looking statements are subject to a variety of risks and uncertainties that could cause the company's actual results to differ materially from the statements contained in this release. Such forward-looking statements include, but are not limited to, Motorola Solutions' financial outlook for the third quarter and full-year of 2025; and the impact of global tariffs and volatility in the global supply chain and our expected ability to mitigate increased costs related thereto. Motorola Solutions cautions the reader that the risks and uncertainties below, as well as those in Part I Item 1A of Motorola Solutions' 2024 Annual Report on Form 10-K and in its other SEC filings available for free on the SEC's website at and on Motorola Solutions' website at could cause Motorola Solutions' actual results to differ materially from those estimated or predicted in the forward-looking statements. Many of these risks and uncertainties cannot be controlled by Motorola Solutions, and factors that may impact forward-looking statements include, but are not limited to: (i) impact of current global economic and political conditions in the markets in which we operate (including, but not limited to, with respect to tariffs); (ii) increased areas of risk, increased competition and additional compliance obligations associated with the introduction of new or enhanced products and services in our segments; (iii) impact of catastrophic events on our business or our customers' or suppliers' business; (iv) social, ethical, environmental and competitive risks relating to the use of artificial intelligence ("AI") in our products and services; (v) the effectiveness of our strategic acquisitions, including the integrations of such acquired businesses and the resulting impact on our financial results and operations; (vi) the inability of our products to meet our customers' expectations or regulatory or industry standards; (vii) our inability to purchase a sufficient amount of materials, parts, and components, as well as software and services, at acceptable prices to meet the demands of our customers, and any disruption to our suppliers or significant increase in the price of supplies; (viii) risks related to our large, multi-year system and services contracts; (ix) the global nature of our employees, customers, suppliers and outsource partners; (x) our use of third-parties to develop, design and/or manufacture many of our components and some of our products, and to perform portions of our business operations; (xi) the inability of our subcontractors to perform in a timely and compliant manner or adhere to our Human Rights Policy; (xii) increasing scrutiny and evolving expectations from investors, customers, lawmakers, regulators and other stakeholders regarding environmental, social and governance ('ESG') related practices and disclosures, as well as recent U.S. based anti-ESG efforts; (xiii) challenges relating to existing or future legislation and regulations pertaining to AI, AI-enabled products and the use of biometrics and other video analytics; (xiv) the impact, including increased costs and potential liabilities, associated with changes in laws and regulations regarding cybersecurity, privacy, data protection, and information security; (xv) the impact of government regulation of radio frequencies; (xvi) regulations, laws and other compliance requirements applicable to our U.S. government customer contracts and grants; (xvii) the impact, including increased costs and additional compliance obligations, associated with existing or future telecommunications-related laws and regulations; (xviii) impact of product regulatory and safety, consumer, worker safety and environmental product compliance and remediation laws; (xix) the evolving state of environmental regulation relating to climate change, and the physical risks of climate change; (xx) impact of tax matters; (xxi) increased cybersecurity threats, a security breach or other significant disruption of our IT systems or those of our outsource partners, suppliers or customers; (xxii) our inability to protect our intellectual property or potential infringement of intellectual property rights of third parties; (xxiii) risks relating to intellectual property licenses and intellectual property indemnities in our customer and supplier contracts; (xxiv) our license of the MOTOROLA, MOTO, MOTOROLA SOLUTIONS and the Stylized M logo and all derivatives and formatives thereof from Motorola Trademark Holdings, LLC; (xxv) inability to attract and retain senior management and key employees; (xxvi) inability to access the capital markets for financing on acceptable terms and conditions; (xxvii) exposure to exchange rate fluctuations on cross-border transactions and the translation of local currency results into U.S. dollars; (xxviii) impact of returns on pension and retirement plan assets and interest rate changes; and (xix) the return of capital to shareholders through dividends and/or repurchasing shares. Motorola Solutions undertakes no obligation to publicly update any forward-looking statement or risk factor, whether as a result of new information, future events or otherwise. About Motorola Solutions | Solving for safer Safety and security are at the heart of everything we do at Motorola Solutions. We build and connect technologies to help protect people, property and places. Our solutions foster the collaboration that's critical for safer communities, safer schools, safer hospitals, safer businesses, and ultimately, safer nations. Learn more about our commitment to innovating for a safer future for us all at GAAP-1 Motorola Solutions, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In millions, except per share amounts) Three Months Ended June 28, 2025 June 29, 2024 Net sales from products $ 1,533 $ 1,563 Net sales from services 1,232 1,065 Net sales 2,765 2,628 Costs of products sales 646 653 Costs of services sales 706 636 Costs of sales 1,352 1,289 Gross margin 1,413 1,339 Selling, general and administrative expenses 450 430 Research and development expenditures 231 220 Other charges 1 9 Intangibles amortization 39 36 Operating earnings 692 644 Other income (expense): Interest expense, net (55 ) (69 ) Other, net 43 5 Total other expense (12 ) (64 ) Net earnings before income taxes 680 580 Income tax expense 165 135 Net earnings 515 445 Less: Earnings attributable to non-controlling interests 2 2 Net earnings attributable to Motorola Solutions, Inc. $ 513 $ 443 Earnings per common share: Basic $ 3.08 $ 2.65 Diluted $ 3.04 $ 2.60 Weighted average common shares outstanding: Basic 166.8 166.9 Diluted 168.8 170.3 Percentage of Net Sales* Net sales from products 55.4 % 59.5 % Net sales from services 44.6 % 40.5 % Net sales 100.0 % 100.0 % Costs of products sales 42.1 % 41.8 % Costs of services sales 57.3 % 59.7 % Costs of sales 48.9 % 49.0 % Gross margin 51.1 % 51.0 % Selling, general and administrative expenses 16.3 % 16.4 % Research and development expenditures 8.4 % 8.4 % Other charges — % 0.3 % Intangibles amortization 1.4 % 1.4 % Operating earnings 25.0 % 24.5 % Other income (expense): Interest expense, net (2.0 )% (2.6 )% Other, net 1.6 % 0.2 % Total other expense (0.4 )% (2.4 )% Net earnings before income taxes 24.6 % 22.1 % Income tax expense 6.0 % 5.1 % Net earnings 18.6 % 16.9 % Less: Earnings attributable to non-controlling interests 0.1 % 0.1 % Net earnings attributable to Motorola Solutions, Inc. 18.6 % 16.8 % * Percentages may not add up due to rounding Expand GAAP-2 Motorola Solutions, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In millions, except per share amounts) Six Months Ended June 28, 2025 June 29, 2024 Net sales from products $ 2,980 $ 2,968 Net sales from services 2,313 2,049 Net sales 5,293 5,017 Costs of products sales 1,220 1,252 Costs of services sales 1,360 1,234 Costs of sales 2,580 2,486 Gross margin 2,713 2,531 Selling, general and administrative expenses 886 827 Research and development expenditures 464 437 Other charges 13 28 Intangibles amortization 76 76 Operating earnings 1,274 1,163 Other income (expense): Interest expense, net (106 ) (113 ) Other, net 59 (560 ) Total other expense (47 ) (673 ) Net earnings before income taxes 1,227 490 Income tax expense 280 83 Net earnings 947 407 Less: Earnings attributable to non-controlling interests 4 3 Net earnings attributable to Motorola Solutions, Inc. $ 943 $ 404 Earnings per common share: Basic $ 5.65 $ 2.43 Diluted $ 5.57 $ 2.37 Weighted average common shares outstanding: Basic 166.8 166.5 Diluted 169.4 170.3 Percentage of Net Sales* Net sales from products 56.3 % 59.2 % Net sales from services 43.7 % 40.8 % Net sales 100.0 % 100.0 % Costs of products sales 40.9 % 42.2 % Costs of services sales 58.8 % 60.2 % Costs of sales 48.7 % 49.6 % Gross margin 51.3 % 50.4 % Selling, general and administrative expenses 16.7 % 16.5 % Research and development expenditures 8.8 % 8.7 % Other charges 0.2 % 0.6 % Intangibles amortization 1.4 % 1.5 % Operating earnings 24.1 % 23.2 % Other income (expense): Interest expense, net (2.0 )% (2.3 )% Other, net 1.1 % (11.2 )% Total other expense (0.9 )% (13.4 )% Net earnings before income taxes 23.2 % 9.8 % Income tax expense 5.3 % 1.7 % Net earnings 17.9 % 8.1 % Less: Earnings attributable to non-controlling interests 0.1 % 0.1 % Net earnings attributable to Motorola Solutions, Inc. 17.8 % 8.0 % * Percentages may not add up due to rounding Expand GAAP-3 Motorola Solutions, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In millions) June 28, 2025 December 31, 2024 Assets Cash and cash equivalents $ 3,206 $ 2,102 Accounts receivable, net 1,852 1,952 Contract assets 1,380 1,230 Inventories, net 861 766 Other current assets 415 429 Total current assets 7,714 6,479 Property, plant and equipment, net 1,070 1,022 Operating lease assets 590 529 Investments 180 135 Deferred income taxes 1,230 1,280 Goodwill 3,840 3,526 Intangible assets, net 1,361 1,249 Other assets 427 375 Total assets $ 16,412 $ 14,595 Liabilities and Stockholders' Equity Current portion of long-term debt $ 70 $ 322 Accounts payable 913 1,018 Contract liabilities 2,016 2,072 Accrued liabilities 1,465 1,643 Total current liabilities 4,464 5,055 Long-term debt 7,661 5,675 Operating lease liabilities 472 427 Other liabilities 1,831 1,719 Total Motorola Solutions, Inc. stockholders' equity 1,968 1,703 Non-controlling interests 16 16 Total liabilities and stockholders' equity $ 16,412 $ 14,595 Expand GAAP-4 Motorola Solutions, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (In millions) Three Months Ended June 28, 2025 June 29, 2024 Operating Net earnings $ 515 $ 445 Adjustments to reconcile Net earnings to Net cash provided by operating activities: Depreciation and amortization 86 83 Non-cash other charges (income) (12 ) 12 Share-based compensation expenses 74 63 Changes in assets and liabilities, net of effects of acquisitions, dispositions, and foreign currency translation adjustments: Accounts receivable (68 ) (170 ) Inventories (22 ) 36 Other current assets and contract assets (44 ) (60 ) Accounts payable, accrued liabilities and contract liabilities (281 ) (241 ) Other assets and liabilities 24 1 Deferred income taxes — 11 Net cash provided by operating activities 272 180 Investing Acquisitions and investments, net (14 ) (5 ) Proceeds from sales of investments and businesses, net 2 2 Capital expenditures (48 ) (68 ) Net cash used for investing activities (60 ) (71 ) Financing Net proceeds from issuance of debt 1,983 — Repayments of debt (252 ) — Revolving credit facility renewal fees (5 ) — Issuances of common stock, net of tax 54 6 Purchases of common stock (218 ) (71 ) Payments of dividends (182 ) (163 ) Payments of dividends to non-controlling interests (4 ) (3 ) Net cash provided by (used for) financing activities 1,376 (231 ) Effect of exchange rate changes on total cash and cash equivalents 54 (9 ) Net increase (decrease) in total cash and cash equivalents 1,642 (131 ) Cash and cash equivalents, beginning of period 1,564 1,512 Cash and cash equivalents, end of period $ 3,206 $ 1,381 Expand GAAP-5 Motorola Solutions, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (In millions) Six Months Ended June 28, 2025 June 29, 2024 Operating Net earnings $ 947 $ 407 Adjustments to reconcile Net earnings to Net cash provided by operating activities: Depreciation and amortization 167 166 Non-cash other charges (income) (5 ) 15 Share-based compensation expenses 140 119 Loss from the extinguishment of Silver Lake Convertible Debt — 585 Changes in assets and liabilities, net of effects of acquisitions, dispositions, and foreign currency translation adjustments: Accounts receivable 129 (57 ) Inventories (84 ) 29 Other current assets and contract assets (122 ) (183 ) Accounts payable, accrued liabilities and contract liabilities (455 ) (331 ) Other assets and liabilities 49 (18 ) Deferred income taxes 17 (170 ) Net cash provided by operating activities 783 562 Investing Acquisitions and investments, net (464 ) (42 ) Proceeds from sales of investments and businesses, net 12 38 Capital expenditures (85 ) (114 ) Net cash used for investing activities (537 ) (118 ) Financing Net proceeds from issuance of debt 1,983 1,288 Repayments of debt (252 ) (1,593 ) Revolving credit facility renewal fees (5 ) — Issuances of common stock, net of tax (37 ) 1 Purchases of common stock (543 ) (110 ) Payments of dividends (364 ) (326 ) Payments of dividends to non-controlling interests (4 ) (3 ) Net cash provided by (used for) financing activities 778 (743 ) Effect of exchange rate changes on total cash and cash equivalents 80 (25 ) Net increase (decrease) in total cash and cash equivalents 1,104 (324 ) Cash and cash equivalents, beginning of period 2,102 1,705 Cash and cash equivalents, end of period $ 3,206 $ 1,381 Expand Non-GAAP-1 Motorola Solutions, Inc. and Subsidiaries Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (In millions) Three Months Ended Six Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net cash provided by operating activities $ 272 $ 180 $ 783 $ 562 Capital expenditures (48 ) (68 ) (85 ) (114 ) Free cash flow $ 224 $ 112 $ 698 $ 448 Expand Non-GAAP-2 Motorola Solutions, Inc. and Subsidiaries Reconciliation of Net Earnings Attributable to MSI to Non-GAAP Net Earnings Attributable to MSI (In millions) Three Months Ended Six Months Ended Statement Line June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net earnings attributable to MSI $ 513 $ 443 $ 943 $ 404 Non-GAAP adjustments before income taxes: Share-based compensation expenses Cost of sales, SG&A and R&D 74 63 140 119 Intangible assets amortization expense Intangibles amortization 39 36 76 76 Reorganization of business charges Cost of sales and Other charges (income) 14 4 31 14 Hytera-related legal expenses SG&A 6 6 20 7 Loss on financing issuance costs Other (income) expense 2 — 2 — Acquisition-related transaction fees Other charges (income) 2 4 8 7 Legal settlements Other charges (income) 1 — 5 6 Assessments of uncertain tax positions Interest income, net, Other (income) expense — 20 1 21 Operating lease asset impairments Other charges (income) — 1 — 4 Loss from the extinguishment of Silver Lake Convertible Debt Other (income) expense — — — 585 Investment impairments Other (income) expense — — — 3 Gain on Hytera legal settlement Other charges (income) (10 ) — (20 ) — Fair value adjustments to equity investments Other (income) expense (18 ) 11 (13 ) 13 Total Non-GAAP adjustments before income taxes $ 110 $ 145 $ 250 $ 855 Income tax expense on Non-GAAP adjustments 21 36 51 225 Total Non-GAAP adjustments after income taxes 89 109 199 630 Non-GAAP Net earnings attributable to MSI $ 602 $ 552 $ 1,142 $ 1,034 Calculation of Non-GAAP Tax Rate (In millions) Three Months Ended Six Months Ended June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net earnings before income taxes $ 680 $ 580 $ 1,227 $ 490 Total Non-GAAP adjustments before income taxes* 110 145 250 855 Non-GAAP Net earnings before income taxes 790 725 1,477 1,345 Income tax expense 165 135 280 83 Income tax expense on Non-GAAP adjustments** 21 36 51 225 Total Non-GAAP Income tax expense $ 186 $ 171 $ 331 $ 308 Non-GAAP Tax rate 23.5 % 23.6 % 22.4 % 22.9 % *See reconciliation on Non-GAAP-2 table above for detail on Non-GAAP adjustments before income taxes **Income tax impact of highlighted items Reconciliation of Earnings Per Share to Non-GAAP Earnings Per Share* Three Months Ended Six Months Ended Statement Line June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Net earnings attributable to MSI $ 3.04 $ 2.60 $ 5.57 $ 2.37 Non-GAAP adjustments before income taxes: Share-based compensation expenses Cost of sales, SG&A and R&D $ 0.44 $ 0.37 $ 0.83 $ 0.70 Intangible assets amortization expense Intangibles amortization 0.23 0.21 0.45 0.44 Reorganization of business charges Cost of sales and Other charges (income) 0.08 0.02 0.18 0.08 Hytera-related legal expenses SG&A 0.04 0.04 0.12 0.04 Loss on financing issuance costs Other (income) expense 0.01 — 0.01 — Acquisition-related transaction fees Other charges (income) 0.01 0.02 0.05 0.04 Legal settlements Other charges (income) 0.01 — 0.03 0.04 Assessments of uncertain tax positions Interest income, net, Other (income) expense — 0.12 0.01 0.12 Operating lease asset impairments Other charges (income) — 0.01 — 0.02 Loss from the extinguishment of Silver Lake Convertible Debt Other (income) expense — — — 3.43 Investment impairments Other (income) expense — — — 0.02 Gain on Hytera legal settlement Other charges (income) (0.06 ) — (0.12 ) — Fair value adjustments to equity investments Other (income) expense (0.11 ) 0.06 (0.08 ) 0.08 Total Non-GAAP adjustments before income taxes $ 0.65 $ 0.85 $ 1.48 $ 5.01 Income tax expense on Non-GAAP adjustments 0.12 0.21 0.31 1.33 Total Non-GAAP adjustments after income taxes 0.53 0.64 1.17 3.68 Non-GAAP Net earnings attributable to MSI $ 3.57 $ 3.24 $ 6.74 $ 6.05 GAAP Diluted Weighted Average Common Shares 168.8 170.3 169.4 170.3 Adjusted for dilutive shares outstanding** — — — 0.50 Non-GAAP Diluted Weighted Average Common Shares 168.8 170.3 169.4 170.8 *Indicates Non-GAAP Diluted EPS ** Under U.S. GAAP, the Silver Lake shares were considered anti-dilutive to earnings per share for the six months ended June 29, 2024 and were excluded from the computation of GAAP diluted weighted average common shares and diluted earnings per share. The shares are considered dilutive for non-GAAP earnings per share for the six months ended June 29, 2024 and an adjustment is reflected to include these shares for non-GAAP diluted earnings per share. Expand Non-GAAP-3 Motorola Solutions, Inc. and Subsidiaries Reconciliations of Operating Earnings to Non-GAAP Operating Earnings and Operating Margin to Non-GAAP Operating Margin (In millions) Three Months Ended June 28, 2025 June 29, 2024 Products and Systems Integration Software and Services Total Products and Systems Integration Software and Services Total Net sales $ 1,653 $ 1,112 $ 2,765 $ 1,658 $ 970 $ 2,628 Operating earnings ("OE") 363 329 692 379 265 644 Above OE non-GAAP adjustments: Share-based compensation expenses 54 20 74 44 19 63 Intangible assets amortization expense 16 23 39 8 28 36 Reorganization of business charges 10 4 14 6 (2 ) 4 Hytera-related legal expenses 6 — 6 6 — 6 Acquisition-related transaction fees 2 — 2 1 3 4 Legal settlements 1 — 1 — — — Operating lease asset impairments — — — 1 — 1 Gain on Hytera legal settlement (10 ) — (10 ) — — — Total above-OE non-GAAP adjustments 79 47 126 66 48 114 Operating earnings after non-GAAP adjustments $ 442 $ 376 $ 818 $ 445 $ 313 $ 758 Operating earnings as a percentage of net sales - GAAP 22.0 % 29.6 % 25.0 % 22.9 % 27.3 % 24.5 % Operating earnings as a percentage of net sales - after non-GAAP adjustments 26.7 % 33.8 % 29.6 % 26.8 % 32.3 % 28.8 % Expand Non-GAAP-4 Motorola Solutions, Inc. and Subsidiaries Reconciliations of Operating Earnings to Non-GAAP Operating Earnings and Operating Margin to Non-GAAP Operating Margin (In millions) Six Months Ended June 28, 2025 June 29, 2024 Products and Systems Integration Software and Services Total Products and Systems Integration Software and Services Total Net sales $ 3,199 $ 2,094 $ 5,293 $ 3,149 $ 1,868 $ 5,017 Operating earnings ("OE") 715 559 1,274 689 474 1,163 Above-OE non-GAAP adjustments: Share-based compensation expenses 102 38 140 83 36 119 Intangible assets amortization expense 32 44 76 17 59 76 Reorganization of business charges 22 9 31 14 — 14 Hytera-related legal expenses 20 — 20 7 — 7 Acquisition-related transaction fees 2 6 8 1 6 7 Legal settlements 3 2 5 1 5 6 Operating lease asset impairments — — — 3 1 4 Gain on Hytera legal settlement (20 ) — (20 ) — — — Total above-OE non-GAAP adjustments 161 99 260 126 107 233 Operating earnings after non-GAAP adjustments $ 876 $ 658 $ 1,534 $ 815 $ 581 $ 1,396 Operating earnings as a percentage of net sales - GAAP 22.4 % 26.7 % 24.1 % 21.9 % 25.4 % 23.2 % Operating earnings as a percentage of net sales - after non-GAAP adjustments 27.4 % 31.4 % 29.0 % 25.9 % 31.1 % 27.8 % Expand Non-GAAP-5 Motorola Solutions, Inc. and Subsidiaries Reconciliation of Revenue to Non-GAAP Organic Revenue (In millions) Three Months Ended June 28, 2025 June 29, 2024 % Change Net sales $ 2,765 $ 2,628 5 % Non-GAAP adjustments: Sales from acquisitions 39 — Organic revenue $ 2,726 $ 2,628 4 % Six Months Ended June 28, 2025 June 29, 2024 % Change Net sales $ 5,293 $ 5,017 6 % Non-GAAP adjustments: Sales from acquisitions 71 — Organic revenue $ 5,222 $ 5,017 4 % Expand
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Veritone Reports Second Quarter 2025 Results
DENVER--(BUSINESS WIRE)--Veritone, Inc. (NASDAQ: VERI), a leader in building human-centered enterprise AI solutions, today announced results for the second quarter ended June 30, 2025. 'In the second quarter, we achieved the top end of our updated June revenue guidance of $24 million, grew our core AI software revenue 45%, and remain on track to achieve profitability by the second half of 2026,' said President and Chief Executive Officer, Ryan Steelberg. 'Our second quarter results were driven by continued demand for our products and services underpinned by our new contract with the United States Air Force and by the expansion of our Veritone Data Refinery pipeline to $20 million. These accomplishments are a testament to the strength of the Veritone platform and the growing demand for our solutions in key verticals.' Second Quarter 2025 Financial Highlights Revenue of $24.0 million, flat compared to Q2 2024. Software Products and Services revenues of $17.5 million, an increase of $1.8 million, or 11.8%, year over year. Excluding Veritone Hire revenue, Software Products and Services grew over 45% year over year driven by larger deals executed in Q2 2025 across the Public Sector and Commercial Enterprise VDR. Managed Services revenue of $6.5 million, a decrease of $1.9 million, or 22.3%, year over year. GAAP gross profit of $15.3 million, a decrease of $1.1 million, or 6.5%, year over year; GAAP gross margin of 63.9% as compared to 68.2% in Q2 2024, largely driven by the higher mix of lower margin revenue. Non-GAAP gross profit of $16.5 million, a decrease of $1.2 million, or 6.7% year over year; non-GAAP gross margin of 68.9% as compared to 73.6% in Q2 2024. Operating loss of $19.3 million, a decrease of $1.0 million, or 4.9%, year over year. Net loss of $26.8 million, an increase of $4.6 million, or 21%, year over year. The year-over-year increase was principally driven by a $2.9 million non-cash change in the estimated fair value of earnout from the divestiture of Veritone One recorded in Q2 2025. Non-GAAP net loss from continuing operations of $8.7 million, a decrease of $1.0 million, or 10.2%, year-over-year. Subsequent to the end of the quarter, closed a registered direct offering for the definitive purchase and sale of 6,452,293 shares of common stock and pre-funded warrants to purchase up to 1,804,587 shares of common stock for aggregate gross proceeds of approximately $9.0 million, and announced a concurrent $1.0 million private placement of up to 709,220 shares to the CEO's affiliated trust, with net proceeds intended for working capital and general corporate purposes including, but not limited to, capital expenditures, debt service, and other business opportunities and to further develop and market the AI platform and applications. (1) Veritone Hire revenue in the quarter ended June 30, 2025 was relatively flat year over year. Expand About Our Sales Pipeline Our sales pipeline represents revenue we expect to receive based on the total fees payable during the full contract term for new contracts outstanding at the end of the quarter and contracts that we believe have a high probability of closing in the next three to twelve months. We include in our sales pipeline fees payable during any cancellable portion and an estimate of license fees that may fluctuate over the term and we do not include any variable fees under the contract (e.g., fees for cognitive processing, storage, professional services and other variable services) and any fees payable after contract renewals or extensions that are at the discretion of our customer. Many of our contracts require us to provide services over more than one year and may include professional fees required to enable our technology in certain environments we do not host or have direct control over. In some cases, our customers may have the ability to terminate our agreements on short notice and our pipeline does not consider the potential impact of any early termination. No assurance can be given that we will ultimately realize our full sales pipeline. Unaudited Three Months Ended Six Months Ended (in $000s) June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change Revenue $ 24,013 $ 24,058 (0 )% $ 46,476 $ 48,211 (4 )% Operating loss $ (19,318 ) $ (20,306 ) (5 )% $ (40,952 ) $ (44,676 ) (8 )% Net loss from continuing operations $ (26,798 ) $ (23,377 ) 15 % $ (46,673 ) $ (49,577 ) (6 )% Net loss $ (26,798 ) $ (22,231 ) 21 % $ (46,673 ) $ (47,429 ) (2 )% GAAP gross profit $ 15,344 $ 16,415 (7 )% $ 29,058 $ 32,742 (11 )% Non-GAAP gross profit* $ 16,535 $ 17,716 (7 )% $ 31,164 $ 34,922 (11 )% Non-GAAP net loss from continuing operations* $ (8,713 ) $ (9,703 ) (10 )% $ (19,843 ) $ (20,047 ) (1 )% Non-GAAP net loss* $ (8,713 ) $ (6,850 ) 27 % $ (19,843 ) $ (14,469 ) 37 % Expand Three Months Ended Six Months Ended Unaudited June 30, 2025 June 30, 2024 Change June 30, 2025 June 30, 2024 Change Software Products & Services Revenue (in 000's) $ 17,469 $ 15,632 12 % $ 31,952 $ 30,852 4 % Total Software Products & Services Customers(1) 3,067 3,437 (11 )% 3,067 3,437 (11 )% Annual Recurring Revenue (in 000's)(2) $ 62,599 $ 67,924 (8 )% $ 62,599 $ 67,924 (8 )% Total New Bookings (in 000's)(3) $ 15,766 $ 14,047 12 % $ 15,766 $ 14,047 12 % Gross Revenue Retention(4) >90% >90% >90% >90% Expand (1) 'Total Software Products & Services Customers' includes Software Products & Services customers as of the end of each respective quarter set forth above with net revenues in excess of $10 during the last month of the quarter and also excludes any customers categorized by us as trial or pilot status. Management uses Total Software Products & Services Customers and we believe Total Software Products & Services Customers are useful to investors because it more accurately reflects our total customers for our Software Products & Services inclusive of Broadbean. (2) 'Annual Recurring Revenue' is calculated as Annual Recurring Revenue (SaaS), which is an annualized calculation of monthly recurring subscription-based SaaS revenue during the last month of the applicable quarter for all Total Software Products & Services customers, combined with Annual Recurring Revenue (Consumption), which is the trailing twelve months of all non-recurring and/or consumption-based revenue for all active Total Software Products & Services customers. Management uses 'Annual Recurring Revenue' and we believe Annual Recurring Revenue is useful to investors because it demonstrates our mix of subscription-based SaaS revenues as compared to consumption-based revenues. (3) 'Total New Bookings' represents the total fees payable during the full contract term for new contracts received in the quarter (including fees payable during any cancellable portion and an estimate of license fees that may fluctuate over the term), excluding any variable fees under the contract (e.g., fees for cognitive processing, storage, professional services and other variable services). (4) 'Gross Revenue Retention' represents a calculation of our dollar-based gross revenue retention rate as of the period end by starting with the revenue from Software Products & Services Customers as of the three months in the prior year quarter to such period, or Prior Year Quarter Revenue. We then deduct from the Prior Year Quarter Revenue any revenue from Software Products & Services Customers who are no longer customers as of the current period end, or Current Period Ending Software Customer Revenue. We then divide the total Current Period Ending Software Customer Revenue by the total Prior Year Quarter Revenue to arrive at our dollar-based gross retention rate, which is the percentage of revenue from all Software Products & Services Customers from our Software Products & Services as of the year prior that is not lost to customer churn. * See tables below for reconciliation of non-GAAP financial measures to directly comparable GAAP measures and for the definitions used for these and additional Software Products & Services Supplemental Financial Information. Expand Commercial Enterprise Veritone Data Refinery ('VDR') solution which helps enterprises transform unstructured data into AI-ready assets, has a qualified and near-term pipeline of over $20.0 million, up 33% from June 2025 estimates and up 100% from Q1 2025. Veritone aiWARE processed an estimated 5 trillion tokens, derived from several million hours of audio and video in Q2 2025. Closed 11 software enterprise deals with clients such as Inter Milan, Laver Cup, United States Soccer Federation, Alpha Media, St. Louis Zoo, ESPN, and Big Ten Network. Public Sector Public Sector solutions gained meaningful traction domestically and globally, with new customer acquisitions and a qualified and near-term pipeline of $189 million, up from $110 million in Q1 2025. Signed 35 new Public Sector customers, including the Riverside County Sheriff's Department and a top 5 police agency in the US. Additionally, we signed 95 renewal contracts in the quarter, further validating the critical nature of our AI software and strong customer retention. Awarded sole source (one year plus four years) contract with the United States Air Force to provide advanced investigative, intelligence and counterintelligence capabilities in support of the DoD and inter-agency mission requirements through Veritone's aiWARE platform, Intelligent Digital Evidence Management System ("iDEMS"), and professional services. Executed agreement with Riverside County Sheriff's Office for the deployment of Veritone's industry-leading redaction software, part of its iDEMS product suite. Financial Results for Three Months Ended June 30, 2025 Delivered second quarter revenue of $24.0 million, flat from the second quarter of 2024 driven by an improvement in Software Products and Services offset by a decline in Managed Services. Software Products & Services revenue of $17.5 million increased by $1.8 million, or 11.8%, year over year, principally due to growth from our Public Sector, which grew 90% or by $1.0 million and from our commercial software products and services, which grew by $0.8 million driven by VDR. Managed Services declined $1.9 million, or 22.3%, year over year principally driven by a decline in representation services, and by a one-time live representation campaign of $1.0 million in Q2 2024, that did not recur in Q2 2025, offset by a $0.1 million improvement in content licensing. GAAP gross profit of $15.3 million decreased $1.1 million from $16.4 million in the second quarter of 2024 largely driven by a higher mix of lower-margin revenue, including VDR in Q2 2025 as compared to Q2 2024. GAAP gross margin of 63.9% declined 430 basis points from 68.2% in the second quarter of 2024 largely for the same reason. Non-GAAP gross margin was 68.9% as compared to 73.6% in the second quarter of 2024, a decline of 470 basis points. Operating loss of $19.3 million improved by $1.0 million, or 4.9%, from a loss of $20.3 million in Q2 2024, principally driven by improvements made to the operating expense structure over the trailing twelve months, offset by lower GAAP gross profit. Net loss from continuing operations of $26.8 million increased from a net loss of $23.4 million for the second quarter of 2024 principally due to a $2.9 million non-cash charge recorded in Q2 2025 as the result of the change in estimated fair value of an earnout associated with our media divestiture in October 2024. Non-GAAP net loss from continuing operations of $8.7 million improved by 10%, or $1.0 million, from a loss of $9.7 million for the second quarter of 2024, principally due to lower operating losses driven by increased discipline on cost management, offset by lower gross profit due to a higher mix of lower-margin revenue. Total Software Product & Services Customers of 3,067 as of June 30, 2025 decreased 10.8% compared to June 30, 2024. This decline was principally due to fewer consumption-based customers across Veritone Hire and the continuing impact of sunsetting legacy Career Builder customers, offset by an increase in public safety customers. Annual Recurring Revenue of $62.6 million decreased 7.8% year over year, driven by the expected decline in Commercial Enterprise consumption spending from customers. Financial Results for Six Months Ended June 30, 2025 During the six months ended June 30, 2025, revenue of $46.5 million was down $1.7 million from $48.2 million in the six months ended June 30, 2024 principally due to a $2.8 million decline in Managed Services offset by a $1.1 million increase in Software Products and Services. The decline in Managed Services was principally driven by a $2.7 million decline in representation services, including our VeriAds services and by declines in live event services and VeriAds as a result of the more challenging macro environment. The increase in Software Products & Services revenue was due to growth from our Public Sector of $0.8 million and from our Commercial Software Products and Services of $0.3 million, which included growth from our VDR offerings offset by a decline in consumption based revenue across Veritone Hire. GAAP gross profit of $29.1 million decreased $3.6 million from $32.7 million during the six months ended June 30, 2024 largely driven by the higher mix of lower margin revenue, including VDR in Q2 2025 as compared to Q2 2024. GAAP gross margin of 62.5% declined 540 basis points from 67.9% in the six months ended June 30,2024. Non-GAAP gross margin was 67.1% as compared to 72.4%, a decline of 530 basis points. Operating loss of $41.0 million improved by $3.7 million or 8% from $44.7 million during the six months ended June 30, 2024, principally driven by improvements made to the operating expense structure over the past two years and a one-time expense of $1.5 million in Q1 2024 associated with our former CEO, offset by lower GAAP gross profit. Net loss from continuing operations of $46.7 million improved from a net loss of $49.6 million during the six months ended June 30, 2024 principally due to the improvement in operating loss. Non-GAAP net loss from continuing operations of $19.8 million was relatively flat when compared to the six months ended June 30, 2024 of $20.0 million. Business Outlook Third Quarter of 2025 Revenue is expected to be in the range of $28.0 million to $30.0 million, as compared to $22.0 million for the third quarter of 2024. Non-GAAP net loss is expected to be in the range of $6.5 million to $6.0 million, as compared to non-GAAP net loss of $11.1 million for the third quarter of 2024. Full Year 2025 Revenue is expected to be in the range of $108 million to $115 million, as compared to $92.6 million for fiscal 2024, a 20% implied annual increase at the midpoint. Non-GAAP net loss is expected to be in the range of $30.0 million to $25.0 million, as compared to non-GAAP net loss of $40.8 million for fiscal 2024, a 33% implied annual decrease at the midpoint. These updated financial guidance ranges supersede any previously disclosed financial guidance and investors should not rely on any previously disclosed financial guidance. Conference Call Veritone will hold a conference call to deliver management's prepared remarks on August 7, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss its second quarter 2025 results, provide an update on the business and conduct a question-and-answer session. To participate, please join the conference call or live audio webcast links or use the following dial-in numbers and ask to be connected to the Veritone earnings conference call. To avoid any delays, please join at least fifteen minutes prior to the start of the call. Conference Call Live Audio Webcast Domestic Call Number: (844) 750-4897 International Call Number: (412) 317-5293 A replay of the conference call can be accessed one hour after the end of the conference call through August 14, 2025. The full webcast replay will be available through August 7, 2026. To access the earnings webcast replay please visit the Veritone Investor Relations website. Domestic Replay Number: (877) 344-7529 International Replay Number: (412) 317-0088 Replay Access Code: 5416612 About the Presentation of Supplemental Non-GAAP Financial Information and Key Performance Indicators In this news release, the Company has supplemented its financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial measures, including Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP net income (loss), Non-GAAP net income (loss) from continuing operations, and Non-GAAP net income from discontinued operations. The Company also provides certain key performance indicators (KPIs), including Total Software Products & Services Customers, Annual Recurring Revenue, Annual Recurring Revenue (SaaS), Annual Recurring Revenue (Consumption), Total New Bookings and Gross Revenue Retention. The Company has posted additional supplemental financial information on its website at concurrently with this press release. Non-GAAP net income (loss) is the Company's net income (loss), adjusted to exclude net income from discontinued operations, net of income taxes, interest expense, net, income taxes, depreciation and amortization, stock-based compensation, change in fair value of earnout receivable, contingent purchase compensation expense, foreign currency impact and other, acquisition and due diligence costs, (gain) loss on asset disposition, severance and executive transition costs, other non-recurring items, and non-GAAP net income from discontinued operations. Non-GAAP net income (loss) from continuing operations is net loss from continuing operations adjusted to exclude net income from discontinued operations, net of income taxes, interest expense, net, income taxes, depreciation and amortization, stock-based compensation, change in fair value of earnout receivable, contingent purchase compensation expense, foreign currency impact and other, acquisition and due diligence costs, (gain) loss on asset disposition, severance and executive transition costs, and other non-recurring items. Non-GAAP net income from discontinued operations is net income from discontinued operations adjusted to exclude interest expense, net, income taxes, depreciation and amortization, stock-based compensation, acquisition due diligence costs, and severance and executive transition costs. Non-GAAP gross profit is defined as gross profit with adjustments to add back depreciation and amortization related to cost of revenue. Non-GAAP gross margin is defined as Non-GAAP gross profit divided by revenue. Reconciliations of each of these non-GAAP financial measures to the most closely comparable GAAP financial measure, including a breakdown of the excluded items noted above are included following the financial statements attached to this news release. These non-GAAP financial measures are not calculated and presented in accordance with GAAP and should not be considered as an alternative to net income (loss), operating income (loss), net income (loss) from continuing operations, net income (loss) from discontinued operations, gross profit, gross margin or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. The Company has provided these non-GAAP financial measures and KPIs because management believes such information to be important supplemental measures of performance that are commonly used by securities analysts, investors and other interested parties in the evaluation of companies in its industry. Management also uses this information internally for forecasting, budgeting and measuring annual bonus compensation targets for executive personnel, including the Company's named executive officers. Non-GAAP net income (loss) provides management and investors consistency and comparability with the Company's past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of items that are often unrelated to overall operating performance. Non-GAAP gross profit and Non-GAAP gross margin allow investors and management to analyze the Company's operating performance by excluding expenses that are not directly related to the cost of providing goods and services. Other companies (including the Company's competitors) may define these non-GAAP financial measures differently. The non-GAAP financial measures may not be indicative of the historical operating results of Veritone or predictive of potential future results. Investors should not consider these non-GAAP financial measures in isolation or as a substitute for analysis of the Company's results as reported in accordance with GAAP. In addition, the Company defines the following capitalized terms in this news release as follows: Software Products & Services consists of revenue generated from the Company's aiWARE platform and Veritone Hire solutions' talent acquisition solutions, any related support and maintenance services, and any related professional services associated with the deployment and/or implementation of such solutions. Managed Services consists of revenues generated from content licensing customers, representation services, and, to a lesser extent, from advertising customers and related services. About Veritone Veritone (NASDAQ: VERI) builds human-centered enterprise AI solutions. Serving customers in the media, entertainment, public sector and talent acquisition industries, Veritone's software and services empower individuals at the world's largest and most recognizable brands to run more efficiently, accelerate decision making and increase profitability. Veritone's leading enterprise AI platform, aiWARE™, orchestrates an ever-growing ecosystem of machine learning models, transforming data sources into actionable intelligence. By blending human expertise with AI technology, Veritone advances human potential to help organizations solve problems and achieve more than ever before, enhancing lives everywhere. To learn more, visit Safe Harbor Statement This news release contains forward-looking statements, including without limitation, statements regarding our expected total revenue and non-GAAP net loss for Q3 2025 and for full year 2025, the performance and function of Veritone Data Refinery, customer acquisition, customer transaction pipelines and the estimated values thereof, our cost reduction and restructuring initiatives, and our ability to achieve profitability by the later portion of 2026. In addition, words such as 'may,' 'will,' 'expect,' 'believe,' 'anticipate,' 'intend,' 'plan,' 'outlook,' 'should,' 'could,' 'estimate,' 'confident' or 'continue' or the plural, negative or other variations thereof or comparable terminology are intended to identify forward-looking statements, and any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements speak only as of the date hereof, and are based on management's current assumptions, expectations, beliefs and information. As such, our actual results could differ materially and adversely from those expressed in any forward-looking statement as a result of various factors. Important factors that could cause such differences include, among other things: our ability to continue as a going concern, including our ability to service our debt obligations as they come due over the next twelve months and beyond; our ability to expand our aiWARE SaaS business; declines or limited growth in the market for AI-based software applications and concerns over the use of AI that may hinder the adoption of AI technologies; our requirements for additional capital and liquidity to support our operations, our business growth, service our debt obligations and refinance maturing debt obligations, and the availability of such capital on acceptable terms, if at all; declines in key customers' usage of our products and other offerings; our ability to realize the intended benefits of our acquisitions, sales, divestitures, and other existing or planned cost-saving measures, including the sale of our full service advertising agency, Veritone One, LLC, and our ability to successfully integrate our acquisition of Broadbean; our identification of existing material weaknesses in our internal control over financial reporting and plans for remediation; fluctuations in our results over time; the impact of seasonality on our business; our ability to manage our growth, including through acquisitions and expansion into international markets; our ability to enhance our existing products and introduce new products that achieve market acceptance and keep pace with technological developments; actions by our competitors, partners and others that may block us from using third party technologies in our aiWARE platform, offering it for free to the public or making it cost prohibitive to continue to incorporate such technologies into our platform; interruptions, performance problems or security issues with our technology and infrastructure, or that of third parties with whom we work; the impact of the continuing economic disruption caused by macroeconomic and geopolitical factors, including the Russia-Ukraine conflict, the Israel-Hamas war and conflict in the surrounding regions, financial instability, inflation and the responses by central banking authorities to control inflation, monetary supply shifts, high interest rates, the imposition of tariffs, trade tensions, and global trade disputes, and the threat of recession in the United States and around the world on our business operations and those of our existing and potential customers; and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Certain of these judgments and risks are discussed in more detail in our most recently-filed Annual Report on Form 10-K, and our Quarterly Reports on Form 10-Q and other periodic reports filed from time to time with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives or plans will be achieved. The forward-looking statements contained herein reflect our beliefs, estimates and predictions as of the date hereof, and we undertake no obligation to revise or update the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events for any reason, except as required by law. Veritone, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 13,568 $ 16,911 Accounts receivable, net 31,859 31,997 Prepaid expenses and other current assets 12,513 10,498 Total current assets 57,940 59,406 Property, equipment, and improvements, net 10,676 10,052 Intangible assets, net 47,732 59,500 Goodwill 53,110 53,110 Restricted cash 288 407 Other assets 17,060 15,585 Total assets $ 186,806 $ 198,060 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 15,088 $ 11,023 Deferred revenue 12,345 12,056 Term Loan, current portion 7,750 7,750 Accrued purchase compensation, current portion 1,213 1,200 Accrued expenses and other current liabilities 28,446 28,928 Total current liabilities 64,842 60,957 Convertible Notes 90,428 90,135 Term Loan, non-current portion 18,669 21,316 Accrued purchase compensation, non-current portion — 900 Other non-current liabilities 11,649 11,300 Total liabilities 185,588 184,608 Commitments and contingencies Stockholders' equity (deficit): Common stock, par value $0.001 per share; 150,000,000 shares authorized; 47,583,142 and 40,217,628 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively 55 41 Additional paid-in capital 515,982 480,477 Accumulated other comprehensive income (loss) (866 ) 214 Accumulated deficit (513,953 ) (467,280 ) Total stockholders' equity 1,218 13,452 Total liabilities and stockholders' equity $ 186,806 $ 198,060 Expand Veritone, Inc. Condensed Consolidated Statements of Operations (unaudited) (in thousands) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenue $ 24,013 $ 24,058 $ 46,476 $ 48,211 Operating expenses: Cost of revenue (exclusive of depreciation and amortization shown separately below) 7,478 6,342 15,312 13,289 Sales and marketing 11,096 11,208 21,201 21,156 Research and development 4,932 6,082 10,138 14,507 General and administrative 12,653 13,855 26,657 29,633 Depreciation and amortization 7,172 6,877 14,120 14,302 Total operating expenses 43,331 44,364 87,428 92,887 Operating loss (19,318 ) (20,306 ) (40,952 ) (44,676 ) Interest expense, net 3,434 3,034 6,062 5,496 Other expense (income), net 3,162 115 (899 ) 528 Loss from continuing operations before income taxes (25,914 ) (23,455 ) (46,115 ) (50,700 ) Income taxes 884 (78 ) 558 (1,123 ) Net loss from continuing operations (26,798 ) (23,377 ) (46,673 ) (49,577 ) Net income from discontinued operations, net of income taxes — 1,146 — 2,148 Net loss $ (26,798 ) $ (22,231 ) $ (46,673 ) $ (47,429 ) Earnings (Loss) per share: Loss per share from continuing operations, basic and diluted $ (0.54 ) $ (0.62 ) $ (0.95 ) $ (1.32 ) Earnings per share from discontinued operations, basic and diluted $ — $ 0.03 $ — $ 0.06 Loss per share, basic and diluted $ (0.54 ) $ (0.59 ) $ (0.95 ) $ (1.26 ) Weighted-average common shares outstanding used in computing loss per share, basic and diluted 49,626,642 37,814,019 48,988,604 37,583,623 Expand Veritone, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) Six Months Ended June 30, 2025 June 30, 2024 Cash flows from operating activities: Net loss $ (46,673 ) $ (47,429 ) Less: net income from discontinued operations, net of income taxes — (2,148 ) Net loss from continuing operations (46,673 ) (49,577 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 14,120 14,302 Stock-based compensation 3,453 3,593 Non-cash interest expense 2,507 2,833 Deferred income taxes (315 ) (2,464 ) Provision for credit losses 668 548 Reduction in carrying amount of operating lease right-of-use assets 489 237 Change in fair value of earnout receivable (784 ) — Changes in operating assets and liabilities: Accounts receivable (530 ) 3,339 Prepaid expenses and other current assets 815 2,065 Other assets (11 ) 30 Accounts payable 3,570 (7,738 ) Deferred revenue 289 653 Accrued expenses and other current liabilities (2,797 ) 500 Other non-current liabilities (78 ) 341 Net cash used in operating activities – continuing operations (25,277 ) (31,338 ) Net cash provided by operating activities – discontinued operations — 3,547 Net cash used in operating activities (25,277 ) (27,791 ) Cash flows from investing activities: Capital expenditures (2,311 ) (3,247 ) Sale of non-marketable equity investment — 1,800 Net cash used in investing activities – continuing operations (2,311 ) (1,447 ) Net cash used in investing activities – discontinued operations — (152 ) Net cash used in investing activities (2,311 ) (1,599 ) Cash flows from financing activities: Repayment of senior secured term loan (3,875 ) (1,938 ) Proceeds from issuance of stock and pre-funded warrants under registered direct offerings and at-the-market offering, net of offering costs 29,449 — Debt issuance costs (114 ) — Proceeds from issuance of stock under employee stock plans, net 140 235 Taxes paid related to net share settlement of equity awards (341 ) (456 ) Settlement of deferred consideration for acquisitions — (1,800 ) Net cash provided by (used in) financing activities – continuing operations 25,259 (3,959 ) Net cash provided by financing activities – discontinued operations — — Net cash provided by (used in) financing activities 25,259 (3,959 ) Effect of exchange rates on cash, cash equivalents, and restricted cash (1,133 ) — Net change in cash, cash equivalents, and restricted cash (3,462 ) (33,349 ) Cash, cash equivalents, and restricted cash, beginning of period 17,318 80,306 Cash, cash equivalents, and restricted cash, end of period 13,856 46,957 Less: cash, cash equivalents, restricted cash included in discontinued operations — (39,357 ) Cash, cash equivalents, and restricted cash included in continuing operations $ 13,856 $ 7,600 Expand Veritone, Inc. Revenue Detail (unaudited) (in thousands) Three Months Ended June 30, 2025 June 30, 2024 Commercial Enterprise Public Sector Total Commercial Enterprise Public Sector Total Software Products & Services $ 15,334 $ 2,135 $ 17,469 $ 14,510 $ 1,122 $ 15,632 Managed Services: Representation Services 1,529 — 1,529 3,541 — 3,541 Licensing 5,015 — 5,015 4,885 — 4,885 Total Managed Services 6,544 — 6,544 8,426 — 8,426 Total revenue $ 21,878 $ 2,135 $ 24,013 $ 22,936 $ 1,122 $ 24,058 Expand Six Months Ended June 30, 2025 June 30, 2024 Commercial Enterprise Public Sector Total Commercial Enterprise Public Sector Total Software Products & Services $ 28,483 $ 3,469 $ 31,952 $ 28,212 $ 2,640 $ 30,852 Managed Services: Representation Services 4,301 — 4,301 7,033 — 7,033 Licensing 10,223 — 10,223 10,326 — 10,326 Total Managed Services 14,524 — 14,524 17,359 — 17,359 Total revenue $ 43,007 $ 3,469 $ 46,476 $ 45,571 $ 2,640 $ 48,211 Expand Veritone, Inc. Reconciliation of GAAP Net Loss to Non-GAAP Net Loss (unaudited) (in thousands) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Net loss $ (26,798 ) $ (22,231 ) $ (46,673 ) $ (47,429 ) Net income from discontinued operations, net of income taxes — (1,146 ) — (2,148 ) Interest expense, net 3,434 3,034 6,062 5,496 Income taxes 884 (78 ) 558 (1,123 ) Depreciation and amortization 7,172 6,877 14,120 14,302 Stock-based compensation 1,710 2,059 3,453 3,593 Change in fair value of earnout receivable 2,870 — (784 ) — Contingent purchase compensation expense 138 568 213 885 Foreign currency impact and other 254 (61 ) (162 ) 355 Acquisition and due diligence costs 588 202 856 1,105 (Gain) Loss on asset disposition — 170 — 170 Severance and executive transition costs 1,035 903 1,500 4,747 Other non-recurring items(1) — — 1,014 — Non-GAAP net loss from continuing operations (8,713 ) (9,703 ) (19,843 ) (20,047 ) Non-GAAP net income from discontinued operations(2) — 2,853 — 5,578 Non-GAAP net loss $ (8,713 ) $ (6,850 ) $ (19,843 ) $ (14,469 ) Expand (1) Other non-recurring items for the six months ended June 30, 2025 consists of fees paid to the lenders of our senior secured term loan in connection with the Limited Consent to the Credit Agreement entered into on March 13, 2025. (2) A reconciliation of non-GAAP net income from discontinued operations to GAAP net income from discontinued operations for the three and six months ended June 30, 2024 is set forth in the table below. Expand Veritone, Inc. Reconciliation of GAAP Net Income from Discontinued Operations to Non-GAAP Net Income from Discontinued Operations (unaudited) (in thousands) Three Months Ended Six Months Ended June 30, 2024 June 30, 2024 Net income from discontinued operations, net of income taxes $ 1,146 $ 2,148 Interest expense, net 1,463 2,991 Income taxes 35 35 Depreciation and amortization 82 159 Stock-based compensation 80 154 Acquisition and due diligence costs 39 77 Severance and executive transition costs 8 14 Non-GAAP net income from discontinued operations $ 2,853 $ 5,578 Expand Veritone, Inc. Reconciliation of Expected Non-GAAP Net Loss Range to Expected GAAP Net Loss Range (unaudited) (in millions) Three Months Ending Year Ending September 30, 2025 December 31, 2025 Net loss $(19.0) to $(16.5) $(80.0) to $(67.0) Interest expense, net $3.0 to $2.5 $12.0 to $10.0 Income taxes $— to $(0.5) $— to $(2.0) Depreciation and amortization $7.5 to $7.0 $30.0 to $28.0 Stock-based compensation $2.0 to $1.5 $8.0 to $6.0 Non-GAAP net loss $(6.5) to $(6.0) $(30.0) to $(25.0) Expand Veritone, Inc. Supplemental Financial Information (unaudited) We are providing the following unaudited supplemental financial information as a lookback of prior years to explain our recent historical and year-over-year performance. Quarter Ended June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Total Software Products & Services Customers(1) 3,437 3,291 3,237 3,156 3,067 Annual Recurring Revenue (SaaS) (in 000's)(2) $ 49,223 $ 48,269 $ 47,549 $ 47,494 $ 50,350 Annual Recurring Revenue (Consumption) (in 000's)(3) $ 18,701 $ 15,011 $ 11,245 $ 11,223 $ 12,249 Total New Bookings (in 000's)(4) $ 14,047 $ 16,471 $ 13,228 $ 15,835 $ 15,766 Gross Revenue Retention(5) >90% >90% >90% > 90% > 90% Expand (1) 'Total Software Products & Services Customers' includes Software Products & Services customers as of the end of each respective quarter set forth above with net revenues in excess of $10 during the last month of the quarter and also excludes any customers categorized by us as trial or pilot status. Management uses Total Software Products & Services Customers and we believe Total Software Products & Services Customers are useful to investors because it more accurately reflects our total customers for our Software Products & Services inclusive of Broadbean. (2) 'Annual Recurring Revenue (SaaS)' represents an annualized calculation of monthly recurring subscription-based SaaS revenue during the last month of the applicable quarter for all Total Software Products & Services customers. Management uses 'Annual Recurring Revenue (SaaS)' and we believe Annual Recurring Revenue (SaaS) is useful to investors because Broadbean significantly increases our mix of subscription-based SaaS revenues as compared to consumption-based revenues and the split between the two allows us to delineate between predictable recurring SaaS revenues and more volatile consumption-based revenues. (3) 'Annual Recurring Revenue (Consumption)' represents the trailing twelve months of all non-recurring and/or consumption-based revenue for all active Total Software Products & Services customers. Management uses 'Annual Recurring Revenue (Consumption)' and we believe Annual Recurring Revenue (Consumption) is useful to investors because Broadbean significantly increases our mix of subscription-based SaaS revenues as compared to consumption-based revenues and the split between the two allows us to delineate between predictable recurring SaaS revenues and more volatile consumption-based revenues. (4) 'Total New Bookings' represents the total fees payable during the full contract term for new contracts received in the quarter (including fees payable during any cancellable portion and an estimate of license fees that may fluctuate over the term), excluding any variable fees under the contract (e.g., fees for cognitive processing, storage, professional services and other variable services). (5) 'Gross Revenue Retention' represents a calculation of our dollar-based gross revenue retention rate as of the period end by starting with the revenue from Software Products & Services Customers as of the three months in the prior year quarter to such period, or Prior Year Quarter Revenue. We then deduct from the Prior Year Quarter Revenue any revenue from Software Products & Services Customers who are no longer customers as of the current period end, or Current Period Ending Software Customer Revenue. We then divide the total Current Period Ending Software Customer Revenue by the total Prior Year Quarter Revenue to arrive at our dollar-based gross retention rate, which is the percentage of revenue from all Software Products & Services Customers from our Software Products & Services as of the year prior that is not lost to customer churn. Expand Veritone, Inc. Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (unaudited) (in thousands) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Revenue $ 24,013 $ 24,058 $ 46,476 $ 48,211 Operating expenses: Cost of revenue (exclusive of depreciation and amortization) 7,478 6,342 15,312 13,289 Depreciation and amortization related to cost of revenue 1,191 1,301 2,106 2,180 GAAP gross profit 15,344 16,415 29,058 32,742 Depreciation and amortization related to cost of revenue 1,191 1,301 2,106 2,180 Non-GAAP gross profit $ 16,535 $ 17,716 $ 31,164 $ 34,922 GAAP gross margin 63.9 % 68.2 % 62.5 % 67.9 % Non-GAAP gross margin 68.9 % 73.6 % 67.1 % 72.4 % Expand
Cision Canada
a day ago
- Business
- Cision Canada
Momentum Continues in Q2 as Tucows Reports Growth in Revenue and Profitability
TORONTO, Aug. 7, 2025 /CNW/ - Tucows Inc. (NASDAQ: TCX) (TSX: TC), a global internet services leader, today reported its unaudited financial results for the second quarter ended June 30, 2025. All figures are in U.S. dollars. "Q2 showed good progress in all three businesses," said Elliot Noss, President & CEO of Tucows. "Revenue grew 10% on the back of across-the-board topline gains, with Wavelo and Tucows Domains coming in ahead of plan. Gross profit rose 6%, and net of a one-off fiber-lease expense at Ting—each business continued the robust year-over-year margin expansion we saw in Q1. Most importantly, our ongoing work to improve capital and operational efficiency, including Ting's pivot to a capital-light model, helped drive a 37% jump in Adjusted EBITDA, highlighting our improved economics. This put our mid-year Adjusted EBITDA slightly ahead of progress towards our 2025 guidance." Financial Results Consolidated net revenue for the second quarter of 2025 increased 10.1% to $98.5 million from $89.4 million for the second quarter of 2024, driven by strong year-over-year revenue gains from all three Tucows businesses. Gross profit for the second quarter of 2025 increased 6.2% to $22.1 million from $20.8 million from the second quarter of 2024. The increase in gross profit was driven by strong year-over-year margin gains from Wavelo and Tucows Domains, but was offset by a decrease in gross margin from Ting, due to a one-time, non-cash lease adjustment resulting from a revision to lease payment recognition periods for certain contracts. Net loss for the second quarter of 2025 decreased to $15.6 million, or a loss of $1.41 per share, compared to a net loss of $18.6 million, or a loss of $1.70 per share, for the second quarter of 2024, reflecting improved operational efficiency and revenue momentum. Adjusted net income 1 (loss) and Adjusted EPS 1 in Q2 2025 are ($16.3 million) and ($1.47) per share compared to Q2 2024 Adjusted net income 1 (loss) of ($17.8 million) and Adjusted EPS 1 of ($1.63) per share. Adjusted EBITDA 1 for the second quarter of 2025 grew 37% to $12.6 million from $9.2 million for the second quarter of 2024. The year-over-year improvement was fueled by revenue growth across all three segments: margin expansion from Wavelo and Tucows Domains, Ting's shift to a capital-light model, and rigorous cost discipline and AI-driven efficiencies across the Company. We ended the second quarter of 2025 with cash and cash equivalents, and restricted cash and restricted cash equivalents of $68.6 million. This compares with $55.0 million at the end of the first quarter of 2025 and $52.2 million at the end of the second quarter of 2024. 1 Non-GAAP financial measures are described below and reconciled to GAAP measures in the accompanying tables. 2 Gross profit and Net Income (Loss) for Q2 2025 includes a one-time, immaterial, non-cash increase in lease expense of $2.7 million related to a lease accounting adjustment for certain long-term network access agreements. Summary of Revenues, Gross Profit and Adjusted EBITDA (In Thousands of US Dollars) Revenue Gross Profit Adj. EBITDA¹ 3 Months ended June 30 3 Months ended June 30 3 Months ended June 30 2025 (unaudited) 2024 (unaudited) 2025 (unaudited) 2024 (unaudited) 2025 (unaudited) 2024 (unaudited) Ting Internet Services: Fiber Internet Services 16,410 14,571 7,704 2 9,818 (3,651) 2 (6,442) Wavelo Platform Services: Platform Services 12,656 10,495 12,561 10,163 Other Professional Services 0 6 0 (1) Total Wavelo Platform Services 12,656 10,501 12,561 10,162 5,360 3,911 Tucows Domain Services: Wholesale Domain Services 51,557 48,504 10,365 9,583 Value Added Services 5,757 4,524 5,300 4,004 Total Wholesale 57,314 53,028 15,665 13,587 Retail 10,290 9,340 5,895 5,282 Total Tucows Domain Services 67,604 62,368 21,560 18,869 12,543 11,217 Corporate: Mobile Services and Eliminations 1,793 1,983 (2,431) (754) (1,675) 492 Network Expenses: Network, other costs n/a n/a (6,023) (6,862) n/a n/a Network, depreciation of property and equipment n/a n/a (10,460) (10,057) n/a n/a Network, amortization of intangible assets n/a n/a (366) (366) n/a n/a Network, impairment n/a n/a (435) 0 n/a n/a Total Network Expenses n/a n/a (17,284) (17,285) n/a n/a Total 98,463 89,423 22,110 2 20,810 12,577 2 9,178 1 Non-GAAP financial measures are described below and reconciled to GAAP measures in the accompanying tables. 2 Ting's gross margin for Q2 2025 includes a one-time, immaterial, non-cash increase in lease expense of $2.7 million related to a lease accounting adjustment for certain long-term network access agreements. Notes: 1. Tucows reports all financial information required in conformity with United States generally accepted accounting principles (GAAP). Along with this information, to assist financial statement users in an assessment of our historical performance, the Company discloses non-GAAP financial measures in press releases and on investor conference calls and related events, as the Company believes that the non-GAAP information enhances investors' overall understanding of our financial performance, and should be read in addition to, rather than instead of, the financial statements prepared in accordance with GAAP. Non-GAAP financial measures do not reflect a comprehensive system of accounting and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies and/or analysts and may differ from period to period. The Company endeavors to compensate for these limitations by providing the relevant disclosure of the items excluded in the calculation of Adjusted EBITDA to net income based on U.S. GAAP; Adjusted net income to GAAP net income; and adjusted basic earnings per share to GAAP basic earnings per share, which should be considered when evaluating the Company's results. Tucows strongly encourages investors to review its financial information in its entirety and not to rely on a single financial measure. Adjusted EBITDA The Company believes that the provision of this supplemental non-GAAP measure allows investors to evaluate the operational and financial performance of the Company's core business using similar evaluation measures to those used by management. The Company uses Adjusted EBITDA to measure its performance and prepare its budgets. Since Adjusted EBITDA is a non-GAAP financial performance measure, the Company's calculation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. Because Adjusted EBITDA is calculated before certain recurring cash charges, including interest expense and taxes, and is not adjusted for capital expenditures or other recurring cash requirements of the business, it should not be considered as a liquidity measure. The Company's Adjusted EBITDA definition excludes depreciation, impairment and loss on disposition of property and equipment, amortization of intangible assets, income tax provision, interest expense (net), stock-based compensation, asset impairment, gains and losses from unrealized foreign currency transactions, loss on debt extinguishment and costs that are not indicative of on-going performance (profitability), including acquisition and transition costs. Gains and losses from unrealized foreign currency transactions removes the unrealized effect of the change in the mark-to-market values on outstanding unhedged foreign currency contracts, as well as the unrealized effect from the translation of monetary accounts denominated in non-U.S. dollars to U.S. dollars. The following table reconciles net income (loss) to Adjusted EBITDA (in thousands of US dollars): * Acquisition and transition costs represent transaction-related expenses and transitional expenses. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments. ** Net Income (Loss) for Q2 2025 includes a one-time, immaterial, non-cash increase in lease expense of $2.7 million related to a lease accounting adjustment for certain long-term network access agreements. Adjusted Net Income and Adjusted Basic Earnings Per Common Share (Adjusted EPS) The Company believes that the provision of this supplemental non-GAAP measure allows investors to best evaluate our operating results and understand the operating trends of our core business without the effect of acquisition and transition costs, impairment expenses and losses on extinguishment of debt. Acquisition and transition costs represent transaction-related expenses and transitional expenses. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments. Since adjusted net income and adjusted EPS are non-GAAP financial performance measures, the Company's calculation of adjusted net income and adjusted EPS may not be comparable to other similarly titled measures of other companies; and should not be considered in isolation, as a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. The Company's adjusted net income and adjusted EPS definitions exclude from the calculation of reported GAAP net income and GAAP EPS, the effect of the following items: impairment of property and expenses, acquisition and transition costs (including restructuring charges) and loss on debt extinguishment. The following table reconciles adjusted net income and adjusted EPS to GAAP net income (In thousands of US dollars, except Per Share data): * Acquisition and transition costs represent transaction-related expenses and transitional expenses. Expenses include severance or transitional costs associated with department, operational or overall company restructuring efforts, including geographic alignments. ** Net Income (Loss) for Q2 2025 includes a one-time, immaterial, non-cash increase in lease expense of $2.7 million related to a lease accounting adjustment for certain long-term network access agreements. Management Commentary Concurrent with the dissemination of its quarterly financial results news release at 5:05 p.m. ET on Thursday, August 7, 2025, management's pre-recorded audio commentary (and transcript), discussing the quarter and outlook for the Company will be posted to the Tucows website at Following management's prepared commentary, for the subsequent seven days, until Thursday, August 14, 2025, shareholders, analysts and prospective investors can submit questions to Tucows' management at [email protected]. Management will post responses to questions in an audio recording and transcript to the Company's website at on Tuesday, August 26, 2025, at approximately 5 p.m. ET. All questions will receive a response, however, questions of a more specific nature may be responded to directly. About Tucows Tucows helps connect more people to the benefit of internet access through communications service technology, domain services, and fiber-optic internet infrastructure. Ting ( delivers fixed fiber Internet access with outstanding customer support. Wavelo ( is a telecommunications software suite for service providers that simplifies the management of mobile and internet network access; provisioning, billing and subscription; developer tools; and more. Tucows Domains ( manages approximately 24 million domain names and millions of value-added services through a global reseller network of over 35,000 web hosts and ISPs. Hover ( makes it easy for individuals and small businesses to manage their domain names and email addresses. More information can be found on Tucows' corporate website ( Tucows, Ting, Wavelo, and Hover are registered trademarks of Tucows Inc. or its subsidiaries. This release includes forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding our expectations regarding our future financial results and, including, without limitation, our expectations regarding our ability to realize synergies from the Enom acquisition and our expectation for growth of Ting Internet. These statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Information about other potential factors that could affect Tucows' business, results of operations and financial condition is included in the Risk Factors sections of Tucows' filings with the Securities and Exchange Commission. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. All forward-looking statements are based on information available to Tucows as of the date they are made. Tucows assumes no obligation to update any forward-looking statements, except as may be required by law.
Business Wire
a day ago
- Automotive
- Business Wire
indie Semiconductor Reports Second Quarter 2025 Results
ALISO VIEJO, Calif.--(BUSINESS WIRE)--indie Semiconductor, Inc. (Nasdaq: INDI), an automotive solutions innovator, today announced second quarter results for the period ended June 30, 2025. Q2 revenue was $51.6 million with Non-GAAP gross margin of 49.1 percent, both above the midpoint of the outlook. On a GAAP basis, second quarter 2025 operating loss was $43.0 million compared to $36.6 million a year ago. Non-GAAP operating loss for the second quarter of 2025 was $14.5 million, compared to $17.2 million a year ago, representing continued progress toward profitability. Second quarter 2025 GAAP loss per share was $0.20, while Non-GAAP loss per share was $0.08. 'In Q2, indie delivered results above the midpoint of our outlook, demonstrating continued resilience in a challenging environment," said Donald McClymont, indie's co-founder and chief executive officer. 'Momentum in ADAS is strong. Our flagship radar solution is progressing well with excellent customer feedback from global field trials which are nearing completion, after which production starts. The vision portfolio achieved key milestones including first cameras shipping in humanoid robot applications. Our technology leadership across radar and vision continues to strengthen, positioning indie to capitalize on the long-term growth in vehicle semiconductor content.' Business Highlights Further positive validation of the performance of indie's 77GHz radar solution from advanced road trials performed by our Tier 1 customer Commenced production of iND880 vision processor at new Chinese OEM for Camera Monitoring System application Secured new Occupancy Monitoring System design-win for iND880 with Chinese OEM for EV platform Shipping iND880 powered camera in humanoid robot applications Captured wireless charging design-win at Japanese OEM through Tier 1 partner Hosiden Expanded wireless charging production with new Mahindra platform adoption Early design-wins for LXM-U laser in new quantum applications Strategic Transaction indie announced it has entered into a definitive agreement to acquire emotion3D GmbH, a Vienna, Austria-based leader in perception software targeting all applications of automotive computer vision. This acquisition will enhance indie's iND880 vision processor capabilities and enables software royalties in addition to chip sales. Subject to the terms of the definitive agreement, indie will pay $20 million at closing with potential earnout consideration of $10 million over earnout periods ending February 2027. With plans to close in Q4, subject to customary closing conditions, including regulatory clearance, the transaction is expected to be immediately accretive. Capital Structure Optimization During the quarter, indie repurchased $30 million of 2027 convertible notes at an attractive discount. The Company continues discussions regarding the potential sale of its partially-owned Chinese subsidiary, or alternatively an IPO exit in China, with any expected proceeds to be used for further capital structure optimization. Q3 2025 Outlook We provide guidance on a non-GAAP basis only because certain information necessary to reconcile such results and guidance to GAAP is difficult to estimate and dependent on future events outside of our control and, therefore, is not available without unreasonable efforts. Please refer to the header captioned 'Discussion Regarding the Use of Non-GAAP Financial Measures' in this release for a further discussion of our use of non-GAAP measures. For the third quarter of 2025, indie expects revenue between $52 million and $56 million, or $54 million at the midpoint, with Non-GAAP gross margin in the range of 49% to 50%. indie's Q2 2025 Conference Call indie Semiconductor will host a conference call with analysts to discuss its second quarter 2025 results and business outlook today at 5:00 p.m. Eastern time. To listen to the conference call via the Internet, please go to the Financials tab on the Investors page of indie's website. To listen to the conference call via telephone, please call (877) 451-6152 (domestic) or (201) 389-0879 (international), Conference ID: 13754371. A replay of the conference call will be available beginning at 9:00 p.m. Eastern time on August 7, 2025, until 11:59 p.m. Eastern time on August 21, 2025, under the Financials tab on the Investors page of indie's website, or by calling (844) 512-2921 (domestic) or (412) 317-6671 (international), Access ID: 13754371. About indie Headquartered in Aliso Viejo, CA, indie is empowering the automotive revolution with next generation semiconductors, photonics and software platforms. We focus on developing innovative, high-performance and energy-efficient technology for ADAS, in-cabin user experience and electrification applications. Our mixed-signal SoCs enable edge sensors spanning Radar, LiDAR, Ultrasound, and Computer Vision, while our embedded system control, power management and interfacing solutions transform the in-cabin experience and accelerate increasingly automated and electrified vehicles. As a global innovator, we are an approved vendor to Tier 1 partners and our solutions can be found in marquee automotive OEMs worldwide. Please visit us at to learn more. Safe Harbor Statement This communication contains 'forward-looking statements' (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended). Such statements can be identified by words such as 'will likely result,' 'expect,' 'anticipate,' 'estimate,' 'believe,' 'intend,' 'plan,' 'project,' 'outlook,' 'should,' 'could,' 'may' or words of similar meaning and include, but are not limited to, statements regarding our future business and financial performance and prospects, including statements regarding our continued progress towards profitability, momentum in ADAS, our growth, particularly in radar and vision, the timing of production for radar based on global field trials, the acquisition of emotion3D (the "Acquisition"), the expected timing to close the Acquisition, and the accretive nature of the Acquisition, and the potential sale of our partially-owned Chinese subsidiary, or alternatively an IPO exit in China, and expected use of proceeds, if any. Such forward-looking statements are based upon the current beliefs and expectations of our management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are difficult to predict and generally beyond our control. Actual results and the timing of events may differ materially from the results included in such forward-looking statements. In addition to the factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC on March 3, 2025 and in our other public reports filed with the SEC (including those identified under 'Risk Factors' therein), the following factors, among others, could cause actual results and the timing of events to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: macroeconomic conditions, including inflation, rising interest rates and volatility in the credit and financial markets, our reliance on contract manufacturing and outsourced supply chain and the availability of semiconductors and manufacturing capacity; competitive products and pricing pressures; our ability to win competitive bid selection processes and achieve additional design wins; the impact of recent acquisitions made and any other acquisitions we may make, including our ability to successfully integrate acquired businesses and risks that the anticipated benefits of any acquisitions may not be fully realized or take longer to realize than expected; our ability to develop, market and gain acceptance for new and enhanced products and expand into new technologies and markets; current and potential trade restrictions and trade tensions, including trade and tariff actions taken or proposed by the US government affecting the countries where we operate and political or economic instability in our target markets. All forward-looking statements in this press release are expressly qualified in their entirety by the foregoing cautionary statements. Investors are cautioned not to place undue reliance on the forward-looking statements in this press release, which information set forth herein speaks only as of the date hereof. We do not undertake, and we expressly disclaim, any intention or obligation to update any forward-looking statements made in this announcement or in our other public filings, whether as a result of new information, future events or otherwise, except as required by law. #indieSemi_Earnings INDIE SEMICONDUCTOR, INC. PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share and per share amounts) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue: Product revenue $ 49,720 $ 49,009 $ 100,140 $ 97,587 Contract revenue 1,914 3,346 5,571 7,121 Total revenue 51,634 52,355 105,711 104,708 Operating expenses: Cost of goods sold 30,693 30,241 62,221 60,330 Research and development 38,472 41,301 80,587 90,890 Selling, general, and administrative 18,355 17,447 37,722 39,769 Restructuring costs 7,107 — 7,107 — Total operating expenses 94,627 88,989 187,637 190,989 Loss from operations (42,993 ) (36,634 ) (81,926 ) (86,281 ) Other income (expense), net: Interest income 2,226 1,076 4,493 2,385 Interest expense (4,527 ) (2,134 ) (9,043 ) (4,240 ) Gain from change in fair value of contingent considerations and acquisition-related holdbacks 90 17,331 4,893 32,690 Gain from extinguishment of debt 2,623 — 2,623 — Other income (expense) 1,528 (553 ) 792 (800 ) Total other income, net 1,940 15,720 3,758 30,035 Net loss before income taxes (41,053 ) (20,914 ) (78,168 ) (56,246 ) Income tax benefit (provision) (565 ) (86 ) (621 ) 1,023 Net loss (41,618 ) (21,000 ) (78,789 ) (55,223 ) Less: Net loss attributable to noncontrolling interest (2,580 ) (1,840 ) (5,205 ) (4,884 ) Net loss attributable to indie Semiconductor, Inc. $ (39,038 ) $ (19,160 ) $ (73,584 ) $ (50,339 ) Net loss attributable to common shares — basic $ (39,038 ) $ (19,160 ) $ (73,584 ) $ (50,339 ) Net loss attributable to common shares — diluted $ (39,038 ) $ (19,160 ) $ (73,584 ) $ (50,339 ) Net loss per share attributable to common shares — basic $ (0.20 ) $ (0.11 ) $ (0.38 ) $ (0.30 ) Net loss per share attributable to common shares — diluted $ (0.20 ) $ (0.11 ) $ (0.38 ) $ (0.30 ) Weighted average common shares outstanding — basic 195,370,583 170,164,241 193,234,270 167,384,295 Weighted average common shares outstanding — diluted 195,370,583 170,164,241 193,234,270 167,384,295 Expand INDIE SEMICONDUCTOR, INC. PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) (Unaudited) June 30, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 192,560 $ 274,248 Restricted cash 10,293 10,300 Accounts receivable, net of allowance for doubtful accounts 59,134 52,005 Inventory 47,028 49,887 Prepaid expenses and other current assets 22,745 22,308 Total current assets 331,760 408,748 Property and equipment, net 40,628 34,281 Intangible assets, net 198,540 208,944 Goodwill 276,240 266,368 Operating lease right-of-use assets 14,590 16,107 Other assets and deposits 5,872 6,938 Total assets $ 867,630 $ 941,386 Liabilities and stockholders' equity Accounts payable $ 19,667 $ 28,326 Accrued payroll liabilities 16,880 5,573 Contingent considerations 283 3,589 Accrued expenses and other current liabilities 20,496 29,297 Intangible asset contract liability 4,928 5,875 Current debt obligations 14,227 12,220 Total current liabilities 76,481 84,880 Long-term debt, net of current portion 338,226 369,097 Intangible asset contract liability, net of current portion 9,221 11,965 Deferred tax liabilities, non-current 12,900 11,660 Operating lease liability, non-current 13,291 14,278 Other long-term liabilities 2,415 4,111 Total liabilities 452,534 495,991 Commitments and contingencies Stockholders' equity Preferred stock — — Class A common stock 20 19 Class V common stock 2 2 Additional paid-in capital 963,886 936,564 Accumulated deficit (567,628 ) (494,044 ) Accumulated other comprehensive loss (5,873 ) (24,655 ) indie's stockholders' equity 390,407 417,886 Noncontrolling interest 24,689 27,509 Total stockholders' equity 415,096 445,395 Total liabilities and stockholders' equity $ 867,630 $ 941,386 Expand INDIE SEMICONDUCTOR, INC. RECONCILIATION OF PRELIMINARY NON-GAAP MEASURES TO GAAP (Unaudited) GAAP refers to financial information presented in accordance with U.S. Generally Accepted Accounting Principles. This press release includes non-GAAP financial measures, as defined in Regulation G promulgated by the Securities and Exchange Commission. We believe that our presentation of non-GAAP financial measures provides useful supplementary information to investors. The presentation of non-GAAP financial measures is not meant to be considered in isolation from or as a substitute for results prepared in accordance with GAAP. The reconciliations of our preliminary GAAP to non-GAAP measures are as follows (in thousands, except share and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Computation of non-GAAP gross margin: GAAP revenue $ 51,634 $ 52,355 $ 105,711 $ 104,708 GAAP cost of goods sold 30,693 30,241 62,221 60,330 Acquisition related expenses (110 ) (109 ) (219 ) (219 ) Amortization of intangible assets (4,172 ) (3,727 ) (8,012 ) (7,462 ) Inventory cost realignments — — — (145 ) Share-based compensation (125 ) (388 ) (418 ) (488 ) Non-GAAP gross profit $ 25,348 $ 26,338 $ 52,139 $ 52,692 Non-GAAP gross margin 49.1 % 50.3 % 49.3 % 50.3 % Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Computation of non-GAAP operating loss: GAAP loss from operations $ (42,993 ) $ (36,634 ) $ (81,926 ) $ (86,281 ) Acquisition related and other non-recurring professional expenses 63 558 223 1,753 Amortization of intangible assets 6,532 5,970 12,501 11,741 Inventory cost realignments — — — 145 Share-based compensation 14,759 12,900 32,502 38,284 Restructuring 7,107 — 7,107 — Non-GAAP operating loss $ (14,532 ) $ (17,206 ) $ (29,593 ) $ (34,358 ) Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Computation of non-GAAP net loss: Net loss $ (41,618 ) $ (21,000 ) $ (78,789 ) $ (55,223 ) Acquisition related and other non-recurring professional expenses 63 558 223 1,753 Amortization of intangible assets 6,532 5,970 12,501 11,741 Inventory cost realignments — — — 145 Share-based compensation 14,759 12,900 32,502 38,284 Restructuring 7,107 — 7,107 — Gain from change in fair value of contingent considerations and acquisition-related holdbacks (90 ) (17,331 ) (4,893 ) (32,690 ) Gain from extinguishment of debt (2,623 ) — (2,623 ) — Other (income) expense (1,528 ) 553 (792 ) 800 Non-cash interest expense 672 265 1,329 515 Income tax (benefit) provision 565 86 621 (1,023 ) Non-GAAP net loss $ (16,161 ) $ (17,999 ) $ (32,814 ) $ (35,698 ) Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Computation of non-GAAP EBITDA: Net loss $ (41,618 ) $ (21,000 ) $ (78,789 ) $ (55,223 ) Interest income (2,226 ) (1,076 ) (4,493 ) (2,385 ) Interest expense 4,527 2,134 9,043 4,240 Gain from change in fair value of contingent considerations and acquisition-related holdbacks (90 ) (17,331 ) (4,893 ) (32,690 ) Gain from extinguishment of debt (2,623 ) — (2,623 ) — Other (income) expense (1,528 ) 553 (792 ) 800 Acquisition related and other non-recurring professional expenses 63 558 223 1,753 Depreciation and amortization 8,587 7,393 16,482 14,700 Inventory cost realignments — — — 145 Share-based compensation 14,759 12,900 32,502 38,284 Restructuring 7,107 — 7,107 — Income tax (benefit) provision 565 86 621 (1,023 ) Non-GAAP net loss $ (12,477 ) $ (15,783 ) $ (25,612 ) $ (31,399 ) Expand For the Three Months Ended June 30, 2025 Computation of non-GAAP share count: Weighted Average Class A common stock - Basic 195,370,583 Weighted Average Class V common stock - Basic 17,621,251 Escrow Shares 1,725,000 TeraXion Unexercised Options 605,734 Non-GAAP share count 215,322,568 Non-GAAP net loss $ (16,161 ) Less: Non-GAAP net income attributable to noncontrolling interest in Wuxi 1,224 Non-GAAP net loss attributable to indie Semiconductor, Inc. $ (17,385 ) Non-GAAP net loss per share attributable to indie Semiconductor, Inc. $ (0.08 ) Expand Discussion Regarding the Use of Non-GAAP Financial Measures Our earnings release contains some or all of the following financial measures that have not been calculated in accordance with United States Generally Accepted Accounting Principles ('GAAP'): (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating loss, (iii) non-GAAP net loss, (iv) non-GAAP EBITDA, (v) non-GAAP share count, (vi) non-GAAP net loss and (vii) non-GAAP net loss per share. As set forth in the tables above, we derive such non-GAAP financial measures by excluding certain expenses and other items from the respective GAAP financial measure that is most directly comparable to each non-GAAP financial measure. Management may use these non-GAAP financial measures to, amongst other things, evaluate operating performance and compare it against past periods or against peer companies, make operating decisions, forecast for future periods and to determine payments under compensation programs. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods and competitors more difficult, obscure trends in ongoing operations or improve management's ability to forecast future periods. We provide investors with non-GAAP gross profit and gross margin, non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per share because we believe it is important for investors to be able to closely monitor and understand changes in our ability to generate income from ongoing business operations. We believe these non-GAAP financial measures give investors an additional method to evaluate historical operating performance and identify trends, an additional means of evaluating period-over-period operating performance and a method to facilitate certain comparisons of our operating results to those of our peer companies. We further believe these non-GAAP financial measures allow investors to assess the overall financial performance of our ongoing operations by eliminating the impact of (i) acquisition-related and other non-recurring professional expenses (including acquisition-related or other non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) inventory cost realignments, (iv) restructuring costs, (v) gains or losses recognized in relation to changes in the fair value of warrants, contingent considerations issued by indie, acquisition-related holdbacks and unrealized gains or losses from currency hedging contracts, (vi) non-cash interest expenses related to the amortization of debt discounts and issuance costs, (vii) share-based compensation, and (viii) income tax benefit (provision). We believe that disclosing these non-GAAP financial measures contributes to enhanced financial reporting transparency and provides investors with added clarity about complex financial performance measures. We do not report a GAAP measure of gross profit or gross margin because certain costs related to contract revenues are expensed as incurred and included in research and development expenses, and not in cost of sales, as it is not practicable for us to bifurcate these expenses. We derive and reconcile non-GAAP gross profit from the most relevant GAAP financial measures by subtracting GAAP cost of sales, adjusted for acquisition-related and other non-recurring professional expenses and share-based compensation, from GAAP revenue. We calculate non-GAAP operating loss by excluding from GAAP operating loss, any (i) acquisition-related and other non-recurring professional expenses (including acquisition-related or other non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) inventory cost realignments, (iv) restructuring costs and (v) share-based compensation. We calculate non-GAAP net loss by excluding from GAAP net income (loss), any (i) acquisition-related and other non-recurring professional expenses (including acquisition-related or non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) inventory cost realignments, (iv) restructuring costs, (v) gains or losses recognized in relation to changes in the fair value of warrants, contingent considerations issued by indie, acquisition-related holdbacks and unrealized gains or losses from currency hedging contracts, (vi) non-cash interest expenses related to the amortization of debt discounts and issuance costs, (vii) share-based compensation, and (viii) income tax benefit (provision). We calculate non-GAAP EBITDA by excluding from GAAP net income (loss), any (i) acquisition-related and other non-recurring professional expenses (including acquisition-related or non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) depreciation of fixed assets, (iv) inventory cost realignments, (v) restructuring costs, (vi) gains or losses recognized in relation to changes in the fair value of warrants, contingent considerations issued by indie, acquisition-related holdbacks and unrealized gains or losses from currency hedging contracts, (vii) non-cash interest expenses related to the amortization of debt discounts and issuance costs, (viii) share-based compensation, and (ix) income tax benefit (provision). We calculate non-GAAP share count by adding (i) weighted average Class A common stock, (ii) weighted average Class V common stock held by minority shareholders, which are exchangeable into Class A common stock, (iii) Escrow Shares and (iv) vested but unexercised options issued as part of the TeraXion acquisition. Non-GAAP net loss per share is calculated by dividing non-GAAP net loss by non-GAAP share count. We exclude the items identified above from the respective non-GAAP financial measure referenced above for the reasons set forth with respect to each such excluded item below: Acquisition-related and other non-recurring professional expenses - including such items as, when applicable, fair value charges incurred upon the sale of acquired inventory, accounting impact to the cost of goods sold due to one-time inventory costing realignment with a specific supplier, acquisition-related professional fees and legal expenses and other professional fees that are non-recurring in nature because they are not considered by management in making operating decisions and we believe that such expenses do not have a direct correlation to our future business operations and thereby including such charges do not necessarily reflect the performance of our ongoing operations for the period in which such charges or reversals are incurred. Amortization expenses - related to the amortization expense for acquired intangible assets and certain license rights. Depreciation expenses - related to the depreciation expenses for all property and equipment on hand. Inventory cost realignments - related to the supplier allocation premiums introduced during COVID that is currently incorporated in our inventory cost but have since been eliminated going forward. The impact of this premium is deemed non-recurring and therefore not considered by management in its evaluation of the ongoing performance of the business. Share-based compensation - related to the non-cash compensation expense associated with equity awards granted to our employees (including those granted in lieu of cash compensation) and employer tax related to employee stock transactions. These expenses are not considered by management in making operating decisions and such expenses do not have a direct correlation to our future business operations. Restructuring costs - related to the one-time expenses the Company incurs to reorganize its operations, which is primarily related to workforce reduction, long-lived intangible asset impairment, facilities and other purchase commitment charges. Gain (loss) from change in fair values - because these adjustments (1) are not considered by management in making operating decisions, (2) are not directly controlled by management, (3) do not necessarily reflect the performance of our ongoing operations for the period in which such charges are recognized and (4) cannot make comparisons between peer company performance less reliable. Non-cash interest expense - related to the amortization of debt discounts and issuance costs because (1) these expenses are not considered by management in making decision with respect to financing decisions, and (2) these generally reflect non-cash costs. Income tax benefit (provision) - related to the estimated income tax benefit (provision) that does not result in a current period tax refunds (payments). The non-GAAP financial measures presented should not be considered in isolation and are not an alternative for the respective GAAP financial measure that is most directly comparable to each such non-GAAP financial measure. Investors are cautioned against placing undue reliance on these non-GAAP financial measures and are urged to review and consider carefully the adjustments made by management to the most directly comparable GAAP financial measures to arrive at these non-GAAP financial measures. Non-GAAP financial measures may have limited value as analytical tools because they may exclude certain expenses that some investors consider important in evaluating our operating performance or ongoing business performance. Further, non-GAAP financial measures are likely to have limited value for purposes of drawing comparisons between companies as a result of different companies potentially calculating similarly titled non-GAAP financial measures in different ways because non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Non-GAAP EBITDA is calculated by removing non-recurring, irregular and one-time items that may distort EBITDA, to the current non-GAAP financial measures. We calculate non-GAAP EBITDA by excluding from GAAP net income (loss), any (i) acquisition-related and other non-recurring expenses (including acquisition-related or other non-recurring professional fees and legal expenses, deemed compensation expense and expenses recognized in relation to changes in contingent consideration obligations), (ii) amortization of acquisition-related intangibles and certain license rights, (iii) depreciation of property, plant and equipment, (iv) inventory cost realignments, (v) restructuring costs, (vi) gains or losses recognized in relation to changes in the fair value of warrants, contingent considerations issued by indie, acquisition-related holdbacks and unrealized gains or losses from currency hedging contracts, (vii) non-cash interest expenses related to the amortization of debt discounts and issuance costs, (viii) share-based compensation, and (viii) income tax benefit (provision). To the extent our disclosures contain forward-looking estimates of non-GAAP financial measures, such as our forward-looking outlook for non-GAAP EBITDA, these measures are provided to investors on a prospective basis for the same reasons (set forth above) we provide them to investors on a historical basis. We are generally unable to provide a reconciliation of our forward-looking non-GAAP measures because certain information needed to make a reasonable forward-looking estimate of such non-GAAP measures are difficult to predict and estimate and is often dependent on future events that may be uncertain or outside of our control and, therefore, is not available without unreasonable efforts. Such events may include unanticipated changes in our GAAP effective tax rate, unanticipated one-time charges related to asset impairments (fixed assets, inventory, intangibles, or goodwill), unanticipated acquisition-related and other non-recurring professional expenses, unanticipated settlements, gains, losses and impairments and other unanticipated items not reflective of ongoing operations. Our forward-looking estimates of both GAAP and non-GAAP measures of our financial performance may differ materially from our actual results and should not be relied upon as statements of fact.
