Latest news with #Non-GAAP
Yahoo
2 days ago
- Business
- Yahoo
Marvell Technology Inc (MRVL) Q1 2026 Earnings Call Highlights: Record Revenue and Robust AI ...
Revenue: $1.895 billion, 4% sequential increase, 63% year-over-year growth. Data Center Revenue: $1.44 billion, 5% sequential growth, 76% year-over-year growth. Enterprise Networking Revenue: $178 million. Carrier Infrastructure Revenue: $138 million. Consumer Revenue: $63 million, 29% sequential decline. Automotive and Industrial Revenue: $76 million, 12% sequential decline. GAAP Gross Margin: 50.3%. Non-GAAP Gross Margin: 59.8%. GAAP Operating Expenses: $682 million. Non-GAAP Operating Expenses: $486 million. GAAP Operating Margin: 14.3%. Non-GAAP Operating Margin: 34.2%. GAAP Earnings Per Share: $0.20. Non-GAAP Earnings Per Share: $0.62, 158% year-over-year growth. Cash Flow from Operations: $333 million. Stock Repurchases: $340 million. Total Debt: $4.2 billion. Cash and Cash Equivalents: $886 million. Second Quarter Revenue Guidance: $2 billion at midpoint, 57% year-over-year growth. Second Quarter Non-GAAP Gross Margin Guidance: 59% to 60%. Second Quarter Non-GAAP Earnings Per Share Guidance: $0.62 to $0.72. Warning! GuruFocus has detected 4 Warning Signs with MRVL. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Marvell Technology Inc (NASDAQ:MRVL) delivered record revenue of $1.895 billion for the first quarter of fiscal 2026, reflecting a 4% sequential increase and a strong 63% year-over-year growth. The data center end market achieved record revenue of $1.44 billion, growing 5% sequentially and 76% year-over-year, driven by robust AI demand. Marvell significantly increased stock repurchases in the first quarter, buying back $340 million, up from $200 million in the prior quarter. The company announced the sale of its automotive Ethernet business to Infineon for $2.5 billion, providing additional flexibility in capital allocation strategy. Marvell is forecasting second-quarter revenue of $2 billion at the midpoint of guidance, representing 57% year-over-year growth and setting another record revenue level. The consumer end market saw a 29% sequential decline in revenue, primarily driven by seasonality and gaming demand. The automotive and industrial end market experienced a 12% sequential decline in revenue, with industrial order patterns being lumpy. GAAP operating expenses were $682 million, including stock-based compensation and other costs, impacting overall profitability. Non-GAAP gross margin was 59.8%, slightly below expectations, partly due to the lower-margin custom silicon business. There are ongoing macroeconomic uncertainties that could impact future growth, requiring close monitoring of the broader environment. Q: What is the direction of content in Marvell's next-generation programs, and are you exclusive on these 3-nanometer XPUs? A: Matt Murphy, CEO, clarified that Marvell is the incumbent for the current generation of AI XPUs and has secured 3-nanometer wafer and advanced packaging capacity for 2026. While acknowledging that customers may pursue multiple paths to meet their requirements, Marvell expects its custom silicon revenue to continue growing on a multiyear, multigenerational basis with its customers. Q: How does Marvell plan to support a broader customer base beyond its initial engagements? A: Matt Murphy, CEO, stated that Marvell has the capacity to expand its portfolio and engagements, supported by increased R&D spending and reallocation of resources towards data center and AI opportunities. Marvell is well-positioned to support multiple engagements across various programs, which will be detailed at their upcoming AI investor event. Q: Can you discuss Marvell's positioning in 200 gig SerDes technology and the relationship with NVIDIA? A: Matt Murphy, CEO, emphasized Marvell's best-in-class SerDes technology, with leadership in 200 gig and 400 gig per lane demonstrations. Regarding the NVLink fusion partnership with NVIDIA, Murphy highlighted the complementary role of custom solutions and Marvell's engagement in enabling customers to leverage NVIDIA's rack scale solutions. Q: Can you break down data center revenue and provide insights into AI business growth? A: Matt Murphy, CEO, noted that AI has become the majority of Marvell's data center revenue and is on track to become the majority of the company's overall revenue. While not providing specific quarterly breakdowns, Murphy indicated that AI continues to be the fastest-growing portion of their data center business. Q: What are Marvell's expectations for the second half of the year, particularly for custom and enterprise businesses? A: Matt Murphy, CEO, expects continued growth across the board, driven by AI demand and recovery in enterprise networking and carrier infrastructure. While not providing specific quarterly guidance, Murphy expressed optimism for fiscal 2027, supported by articulated growth drivers. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Hamilton Lane Inc (HLNE) Q4 2025 Earnings Call Highlights: Strong Growth in AUM and Fee-Related ...
Total Asset Footprint: $958 billion, a 4% increase year over year. Assets Under Management (AUM): $138 billion, up $14 billion or 11% from the prior year. Assets Under Advisement (AUA): $819 billion, increased by $23 billion or 3% year over year. Total Management and Advisory Fees: $514 million, a 14% increase year over year. Fee-Related Earnings: $276 million, a 34% increase from the prior year. GAAP EPS: $5.41 based on $217 million of GAAP net income. Non-GAAP EPS: $5.04 based on $274 million of adjusted net income. Annual Fiscal Dividend: Increased by 10% to $2.16 per share. Total Fee-Earning AUM: $72 billion, up $6 billion or 10% from the prior year. Specialized Fund Fee-Earning AUM: $33 billion, a 16% increase. Incentive Fees: $199 million, up 95% year over year. Unrealized Carry Balance: $1.3 billion, up 3% from the prior year. Total Expenses: Increased by $88 million compared to the prior year. Fee-Related Earnings (FRE) Margin: 48%, compared to 45% in the prior year. Warning! GuruFocus has detected 2 Warning Sign with HLNE. Release Date: May 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Hamilton Lane Inc (NASDAQ:HLNE) reported a 4% increase in total asset footprint year over year, reaching $958 billion. AUM grew by $14 billion or 11% compared to the prior year, driven by specialized funds and customized separate accounts. Total management and advisory fees increased by 14% year over year, reaching $514 million. The company approved a 10% increase in its annual fiscal dividend, marking the eighth consecutive annual double-digit percentage increase since 2017. Hamilton Lane Inc (NASDAQ:HLNE) saw record deal flow across secondaries and direct investing in 2024, indicating strong market positioning. Exit activity remains relatively muted, impacting overall deal doing in the market. Both contributions and distributions from LPs are below historical averages, indicating a challenging fundraising environment. Holding periods are extending due to a relatively depressed exit environment, affecting capital return to investors. The separate account business has been impacted by macroeconomic conditions, with fee-paying AUM remaining range-bound for several quarters. Institutional fundraising is tricky due to slow capital return, causing exposure issues and reducing the need for redeployment. Q: How does the margin outlook under the new reporting regime look relative to history? Is it still stable, or do we see changes based on the reporting changes that you've made? A: Erik Hirsch, Co-Chief Executive Officer, explained that the margin compared to the prior margin is up due to moving certain items below the line. However, the macro view on margin remains unchanged, and they expect it to stay stable. The company continues to invest in the business for future growth, including creating new evergreen products and expanding the team. Q: Are the fees to intermediaries on new products changing versus the fees on pre-existing products? Are you seeing demands change by distribution? A: Erik Hirsch noted that distribution fees are predominantly in the wires, which are largely US-centric. Most non-US flows are outside of wires and thus outside of distribution fees. The fees are typically upfront, with no significant changes observed. Q: What are your expectations for fee-related earnings (FRE) margin under the new methodology? A: Jeffrey Armbrister, Chief Financial Officer, stated that the FRE margin is expected to be in the high 40% range. The margin for the recent quarter was about 43%, and they expect it to remain stable annually, despite quarterly fluctuations. Q: What factors will drive growth in the fee-paying AUM within separate accounts, which has been range-bound for several quarters? A: Erik Hirsch explained that the separate account business has been impacted by macroeconomic factors, with investors waiting for market normalization. The company has a strong pipeline and contracted capital that hasn't yet flowed in, which they believe will drive growth as markets stabilize. Q: How do you view the institutional interest in evergreen funds, and could this lead to fee compression over time? A: Erik Hirsch mentioned that institutional interest in evergreen funds is still in the early stages, with no current signs of fee compression. Institutions are attracted to the cost efficiency and performance benefits of evergreen funds, and the company sees this as a positive trend. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
2 days ago
- Business
- Business Wire
Universal Corporation Reports Fiscal Year and Fourth Quarter 2025 Results
RICHMOND, Va.--(BUSINESS WIRE)--Universal Corporation (NYSE:UVV) ('Universal' or the 'Company'), a global business-to-business agriproducts company, today announced financial results for the full fiscal year and fourth quarter ended March 31, 2025. Preston D. Wigner, Chairman, President, and Chief Executive Officer of Universal, stated, 'Fiscal year 2025 was an exceptional year for Universal. We executed against our business plan and increased revenue and operating income on a consolidated basis and for both of our operating segments. The improved results for our Tobacco Operations segment were driven by continued strong demand from our customers, successful global tobacco marketing and procurement efforts, as well as improved volumes and quality of burley tobacco crops in Africa. Our Ingredients Operations segment benefited from higher sales volumes, including increases in sales of value-added products, supported by increased capabilities from the growth in our sales, marketing, and product development teams, and the completion of the expansion project at our Lancaster, Pennsylvania facility. We are very encouraged by the interest we are seeing from customers in our newly produced and developed ingredient products. Mr. Wigner continued, "As I reflect on fiscal year 2025, I thank our employees, customers, shareholders, and other stakeholders for their support throughout the year. As we move into fiscal year 2026, we foresee continued strong demand for tobacco and larger tobacco crops shifting global markets to more balanced tobacco supply positions. We are also continuing our progress with Universal Ingredients and supporting existing and new customers with our platform resources and our expanded and enhanced ingredients facility. I am excited about our prospects for the year ahead as we seek to further maximize and optimize our tobacco business, grow our ingredients business, and strengthen our Company to drive increasing value for all Universal stakeholders." FINANCIAL HIGHLIGHTS Change Fiscal Year Ended March 31, Change Consolidated Results Sales and other operating revenue $ 702.3 $ 770.9 (9) % $ 2,947.3 $ 2,748.6 7 % Cost of goods sold 586.3 619.9 (5) % 2,398.6 2,212.5 8 % Gross profit margin 19.8 % 24.4 % -460 bps 18.6 % 19.5 % -90 bps Selling, general and administrative expenses 73.2 82.7 (11) % 305.3 310.6 (2) % Restructuring and impairment costs — — NA 10.6 3.5 200 % Operating income (as reported) 42.8 68.2 (37) % 232.8 222.0 5 % Adjusted operating income (Non-GAAP)* 42.8 73.0 (41) % 243.4 230.3 6 % Net income attributable to Universal Corporation 9.3 40.3 (77) % 95.0 119.6 (21) % Adjusted net income attributable to Universal Corporation (non-GAAP*) 20.2 44.8 (55) % 116.3 127.1 (8) % Diluted earnings per share (as reported) 0.37 1.61 (77) % 3.78 4.78 (21) % Adjusted diluted earnings per share (Non-GAAP)* 0.80 1.79 (55) % 4.63 5.08 (9) % Segment Results Tobacco operations sales and other operating revenues $ 612.6 $ 696.3 (12) % $ 2,608.7 $ 2,438.8 7 % Tobacco operations operating income 45.8 73.5 (38) % 240.2 222.4 8 % Ingredients operations sales and other operating revenues 89.7 74.6 20 % 338.6 309.8 9 % Ingredients operations operating income 4.4 (1.0) 527 % 12.3 3.9 212 % Expand *See Reconciliation of Certain Non-GAAP Financial Measures in Other Items below. Expand Fiscal Year 2025 Highlights Consolidated Results Revenues up 7% to $2.9 billion on higher tobacco sales prices. Operating income up 5% to $232.8 million on improved performance in both the Tobacco Operations and Ingredient Operations segments. Tobacco Operations Segment Revenues and operating income up 7% and 8%, respectively. Historically high green tobacco prices. Tobacco sales prices up 12% with slight decline in tobacco sales volumes of about 4%. Tobacco Operations segment results reflected: Strong customer demand; Successful tobacco procurement and marketing efforts; Higher quality, better yielding burley crops in Africa; Higher carryover crop sales; Weather-reduced crop sizes in Brazil and the United States; and Higher inventory write-downs. Outlook Flue-cured and burley tobacco crops grown outside of China are expected to increase by 20% and 30%, respectively, in fiscal year 2026. Crop purchases in Brazil in fiscal year 2026 are not following the accelerated patterns seen in fiscal year 2025. Ingredients Operations Segment Higher revenues and operating income on increased sales volumes. Cost of raw materials for certain traditional products were at extremely low levels. Continued high level of interest in value-added products, reflecting effectiveness of platform investments. Select Balance Sheet Items, Liquidity, and Debt Cash balance of $260.1 million at fiscal year-end. Total debt up $38.4 million at fiscal year-end. Net debt down $179.6 million at fiscal year-end on more normalized working capital requirements. Approximately $270 million available under revolving credit facility as of fiscal year-end. Additional Items Restructuring and impairment costs of $10.6 million related to previously announced consolidation of the Company's European sheet operations. Pension settlement charge of $14.1 million Fourth Quarter 2025 Highlights Consolidated Results Revenues and operating income down in the quarter on lower tobacco sales volumes due to earlier shipments in fiscal year 2025. Tobacco Operations Segment Tobacco Operations segment results reflected: Lower sales volumes of approximately 28% quarter-over-quarter on earlier timing of tobacco shipments in fiscal year 2025; Impact of weather-reduced crops from certain origins; and Higher inventory write-downs. Selling, general, and administrative expenses for the Tobacco Operations segment included favorable variances for foreign currency comparisons and the absence of a value-added tax settlement in the prior fiscal year. Ingredients Operations Segment Increased sales volumes for certain new products, particularly in the beverage category. Recent increases in raw material prices for certain traditional products. Some increased sales due to anticipated tariffs. Sustainability Update Mr. Wigner stated, 'As the largest global tobacco leaf merchant, sustainability has been deeply embedded in our DNA. We believe our commitment to setting high standards, promoting a sustainable supply chain, and providing transparency about our sustainability efforts is a strategic part of our business. I am proud of our accomplishments and advances in fiscal year 2025, and I am confident in our ability to leverage our expertise in this area to further strengthen our Company in fiscal year 2026. We believe sustainability is good for our business and represents our good stewardship in the communities in which we operate.' Universal released its 2024 Sustainability Report in December 2024, highlighting its efforts in strengthening supply chain resiliency, continuing to be a strong partner for its farming communities, and advancing energy efficiency. Universal's business strategy integrates responsible business practices, and the Company believes its commitment to sustainability is a competitive advantage in the global marketplace. As disclosed in the Company's 2024 Sustainability Report, Universal continues to support its supply chain sustainability goals and has substantially met its existing targets of zero child labor, appropriate labor accommodations, farm worker minimum wage payments, and personal protective equipment access. The Company's leaf technicians made over 1.8 million visits to more than 175,000 contracted farmers to maintain its visibility and traceability in the Company's supply chain. Universal also continues to enhance transparency and collaboration with its stakeholders by reporting to the Sustainable Tobacco Program. Universal has trained over 175,000 farmers on Good Agricultural Practices and Agricultural Labor Practices to advance environmental and human rights best practices throughout the Company's contracted farmer base. Other Items Reconciliation of Certain Non-GAAP Financial Measures References to adjusted operating income (loss), adjusted net income (loss) attributable to Universal Corporation, adjusted diluted earnings (loss) per share, and the total for segment operating income (loss) are references to non-GAAP financial measures. These measures are not financial measures calculated in accordance with generally accepted accounting principals ("GAAP") and should not be considered as substitutes for operating income (loss), net income (loss) attributable to Universal Corporation, diluted earnings (loss) per share, cash from operating activities or any other operating or financial performance measure calculated in accordance with GAAP, and may not be comparable to similarly-titled measures reported by other companies. Reconciliations of adjusted operating income (loss) to consolidated operating (income), adjusted net income (loss) attributable to Universal Corporation to consolidated net income (loss) attributable to Universal Corporation and adjusted diluted earnings (loss) per share to diluted earnings (loss) per share are provided below. In addition, a reconciliation of the total for segment operating income (loss) to consolidated operating income (loss) is provided in Note 3. "Segment Information" to the consolidated financial statements. Management evaluates the consolidated Company and segment performance excluding certain significant charges or credits. Management believes these non-GAAP financial measures, which exclude items that it believes are not indicative of its core operating results, can provide investors with important information that is useful in understanding its business results and trends. References to net debt, net capitalization, and net debt to net capitalization ratio are also references to non-GAAP financial measures. These measures are not financial measures calculated in accordance with GAAP and should not be considered substitutes for total debt, total capitalization, total debt to total capitalization ratio, or any other operating or financial performance measures calculated in accordance with GAAP, and may not be comparable to similarly-titled measures reported by other companies. Reconciliations of net debt to total debt and net capitalization to total capitalization are provided below to the extent these non-GAAP financial measures are referenced. Management believes these non-GAAP measures are meaningful indicators of liquidity and financial position. The following tables set forth certain non-recurring items included in reported results to reconcile adjusted operating income to consolidated operating income and adjusted net income to net income attributable to Universal Corporation and adjusted diluted earnings per share to diluted earnings per share: (1) In the fourth quarter of fiscal year 2024, the Company utilized a voluntary government- sponsored value-added tax program in Brazil to settle a previously contested assessment. The Company's participation in the settlement program eliminates any future litigation regarding the matter. (2) Restructuring and impairment costs are included in Consolidated operating income in the consolidated statements of income, but excluded for purposes of Adjusted operating income, Adjusted net income available to Universal Corporation, and Adjusted diluted earnings per share. (3) In March 2025, the Company completed a pension de-risking transaction or "pension lift-out" to transfer approximately $47 million of its qualified domestic pension plan obligations and assets to a third-party insurer through the purchase of a non-participating annuity. The obligations transferred to the third-party insurer covered the respective benefit obligations for a subset of retirees currently receiving benefit payments. The transaction triggered settlement accounting that required the Company to immediately recognize a portion of the accumulated comprehensive losses associated with the defined benefit pension plan. (4) The income tax effect of Non-GAAP adjustments was determined based on the timing and nature of the specific Non-GAAP adjustments and their relevant jurisdictional income tax rates (foreign, state, and local) and the applicable U.S. federal income tax rates. The Company considers current and deferred income tax rates to calculate the impact to income taxes for the Non-GAAP adjustments. Expand The following table reconciles total debt to net debt and net capitalization: Investor Conference Call At 5:00 p.m. (Eastern Time) on May 29, 2025, the Company will host a conference call to discuss these results. Those wishing to listen to the call may do so by visiting at that time. A replay of the webcast will be available at that site through August 29, 2025. A taped replay of the call will also be available through June 12, 2025, by dialing (800) 770-2030 (Playback ID: 5786366#). About Universal Corporation Universal Corporation (NYSE: UVV) is a global agricultural company with over 100 years of experience supplying products and innovative solutions to meet our customers' evolving needs and precise specifications. Through our diverse network of farmers and partners across more than 30 countries on five continents, we are a trusted provider of high-quality, traceable products. We leverage our extensive supply chain expertise, global reach, integrated processing capabilities, and commitment to sustainability to provide a range of products and services designed to drive efficiency and deliver value to our customers. For more information, visit CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING INFORMATION This release includes 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Among other things, these statements include statements made in Mr. Wigner's quotations, statements regarding expectations with respect to our fiscal year 2026 performance, our strategic plans, ingredients business, tobacco business, including expectations with respect to size, shipments and sales and purchases of tobacco crops. These forward-looking statements are generally identified by the use of words such as we 'expect,' 'believe,' 'anticipate,' 'could,' 'should,' 'may,' 'plan,' 'will,' 'predict,' 'estimate,' and similar expressions or words of similar import. These forward-looking statements are based upon management's current knowledge and assumptions about future events and involve risks and uncertainties that could cause actual results, performance, or achievements to be materially different from any anticipated results, prospects, performance, or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: product purchased not meeting quality and quantity requirements; reliance on a few large customers; anticipated levels of demand for and supply of our products and services; tobacco growing conditions and customer requirements; major shifts in customer requirements for leaf tobacco; higher inflation rates, tariffs and other pressures on costs; weather and other conditions; exposure to certain legal. regulatory and financial risks related to climate change; industry-specific risks related to our plant-based ingredients businesses; disruption of our supply chain for our plant-based ingredients; success in pursuing strategic investments or acquisitions and integration of new businesses and the impact of these new businesses on future results; our ability to maintain effective information technology systems and safeguard confidential information; our inability to attract, develop, retain, motivate, and maintain good relationships with our workforce; our dependence on a seasonal workforce; epidemics, pandemics or similar widespread public health concerns; government efforts to regulate the production and consumption of tobacco products; government actions on the sourcing of leaf tobacco; economic and political conditions in the countries in which we and our customers operate, including the ongoing impacts from international conflicts; sustainability considerations from governments and other stakeholders; changes in tax laws in the countries where we do business; material weaknesses in our internal control over financial reporting; our inability to use a Form S-3 registration statement; failure of our customers or suppliers to repay extensions of credit; changes in exchange rates; changes in interest rates; and low investment performance by our defined benefit pension plan assets and changes in pension plan valuation assumptions. Please also refer to the risks and uncertainties as discussed in Part I, Item 1A. 'Risk Factors' of Universal's Annual Report on Form 10-K for the fiscal year ended March 31, 2024 and in Part II, Item 1A. "Risk Factors" in Universal's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and related disclosures in other filings that Universal files with the SEC and are available on the SEC's website at All risk factors and uncertainties described herein and therein should be considered in evaluating forward-looking statements, and all of the forward-looking statements are expressly qualified by the cautionary statements contained or referred to herein and therein. Universal cautions investors not to place undue reliance on any forward-looking statements as these statements speak only as of the date when made, and it undertakes no obligation to update any forward-looking statements made, except as required by law. See accompanying notes. Expand UNIVERSAL CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands of dollars) March 31, 2025 2024 ASSETS Current assets Cash and cash equivalents $ 260,115 $ 55,593 Accounts receivable, net 625,876 525,262 Advances to suppliers, net 169,385 139,064 Accounts receivable—unconsolidated affiliates 7,143 5,385 Inventories—at lower of cost or net realizable value: Tobacco 806,332 1,070,580 Other 189,610 193,518 Prepaid income taxes 19,595 19,484 Other current assets 78,041 93,655 Total current assets 2,156,097 2,102,541 Property, plant and equipment Land 26,113 26,244 Buildings 333,398 323,969 Machinery and equipment 723,935 693,868 1,083,446 1,044,081 Less accumulated depreciation (710,472 ) (678,201 ) 372,974 365,880 Other assets Operating lease right-of-use assets 34,260 32,510 Goodwill, net 213,840 213,869 Other intangibles, net 57,836 68,883 Investments in unconsolidated affiliates 79,317 76,289 Deferred income taxes 16,539 15,181 Pension asset 12,819 11,857 Other noncurrent assets 45,870 50,229 460,481 468,818 Total assets $ 2,989,552 $ 2,937,239 Expand UNIVERSAL CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands of dollars) March 31, 2025 2024 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Notes payable and overdrafts $ 455,039 $ 417,217 Accounts payable 98,036 108,727 Accounts payable—unconsolidated affiliates 1,999 1,621 Customer advances and deposits 3,763 17,179 Accrued compensation 44,646 39,766 Income taxes payable 12,586 7,477 Current portion of operating lease liabilities 10,742 10,356 Accrued expenses and other current liabilities 123,350 109,015 Current portion of long-term debt — — Total current liabilities 750,161 711,358 Long-term debt 617,918 617,364 Pensions and other postretirement benefits 35,336 43,251 Long-term operating lease liabilities 20,608 19,302 Other long-term liabilities 22,901 27,902 Deferred income taxes 42,090 39,139 Total liabilities 1,489,014 1,458,316 Shareholders' equity Universal Corporation: Preferred stock: Series A Junior Participating Preferred Stock, no par value, 500,000 shares authorized, none issued or outstanding — — Common stock, no par value, 100,000,000 shares authorized, 24,715,625 shares issued and outstanding (24,573,408 at March 31, 2024) 351,626 345,596 Retained earnings 1,186,981 1,173,196 Accumulated other comprehensive loss (80,051 ) (81,585 ) Total Universal Corporation shareholders' equity 1,458,556 1,437,207 Noncontrolling interests in subsidiaries 41,982 41,716 Total shareholders' equity 1,500,538 1,478,923 Total liabilities and shareholders' equity $ 2,989,552 $ 2,937,239 Expand See accompanying notes. Expand UNIVERSAL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands of dollars) Fiscal Year Ended March 31, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 113,269 $ 132,971 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 59,773 58,326 Provision for losses (recoveries) on advances 1,938 14,090 Inventory write-downs 19,769 9,234 Stock-based compensation expense 8,531 12,063 Foreign currency remeasurement loss (gain), net 6,096 5,114 Foreign currency exchange contracts 916 (365 ) Deferred income taxes 1,083 (5,404 ) Equity in net income of unconsolidated affiliates, net of dividends (3,031 ) (1,239 ) Restructuring and impairment costs 10,573 3,523 Restructuring payments (1,568 ) (1,181 ) Pension settlement 14,101 — Other, net 1,406 1,001 Changes in operating assets and liabilities, net: 94,118 (302,765 ) Net cash provided (used) by operating activities 326,974 (74,632 ) Cash Flows From Investing Activities: Purchase of property, plant and equipment (62,601 ) (66,013 ) Proceeds from sale of business, less cash of businesses sold — 3,757 Proceeds from sale of property, plant and equipment 3,783 2,257 Net cash used by investing activities (58,818 ) (59,999 ) Cash Flows From Financing Activities: Issuance (repayment) of short-term debt, net 37,696 223,000 Dividends paid to noncontrolling interests in subsidiaries (17,530 ) (10,572 ) Repurchase of common stock — (4,744 ) Dividends paid on common stock (79,686 ) (78,402 ) Debt issuance costs and other (3,715 ) (3,607 ) Net cash provided (used) by financing activities (63,235 ) 125,675 Effect of exchange rate changes on cash (399 ) (141 ) Net increase (decrease) in cash and cash equivalents 204,522 (9,097 ) Cash, restricted cash and cash equivalents at beginning of year 55,593 64,690 Cash, Restricted Cash and Cash Equivalents at End of Year $ 260,115 $ 55,593 Expand See accompanying notes. Expand NOTE 1. BASIS OF PRESENTATION Universal Corporation, with its subsidiaries ('Universal' or the 'Company'), is a global business-to-business agriproducts supplier to consumer product manufacturers. The Company is the leading global leaf tobacco supplier and provides high-quality plant-based ingredients to food and beverage end markets. Because of the seasonal nature of the Company's business, the results of operations for any fiscal quarter will not necessarily be indicative of results to be expected for other quarters or a full fiscal year. All adjustments necessary to state fairly the results for the period have been included and were of a normal recurring nature. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2025, which the Company expects to file with the SEC on May 30, 2025. The following table sets forth the computation of basic and diluted earnings per share: NOTE 3. SEGMENT INFORMATION Management regularly evaluates the Company's global business activities, including product and service offerings to its customers, as well as senior management's operational and financial responsibilities. Assessments include an analysis of how its Chief Operating Decision Maker ('CODM') measures business performance and allocates resources. As a result of this analysis, senior management has determined the Company conducts operations across two reportable operating segments, Tobacco Operations and Ingredients Operations. The Tobacco Operations segment activities involve contracting, procuring, processing, packing, storing, and shipping leaf tobacco for sale to, or for the account of, manufacturers of consumer tobacco products throughout the world. Through various operating subsidiaries located in tobacco-growing countries around the world and significant ownership interests in unconsolidated affiliates, the Company processes and/or sells flue-cured and burley tobaccos, dark air-cured tobaccos, and oriental tobaccos. Flue-cured, burley, and oriental tobaccos are used principally in the manufacture of cigarettes, and dark air-cured tobaccos are used mainly in the manufacture of cigars, pipe tobacco, and smokeless tobacco products. Some of these tobacco types are also used in the manufacture of next generation tobacco products that are intended to provide consumers with an alternative to traditional combustible products. The Tobacco Operations segment also provides physical and chemical product testing for tobacco customers. A substantial portion of the Company's Tobacco Operations' revenues are derived from sales to a limited number of large, multinational cigarette and cigar manufacturers. The Ingredients Operations segment provides its customers with a broad variety of plant-based ingredients for both human and pet consumption. The Ingredients Operations segment utilizes a variety of value-added manufacturing processes converting raw materials into a wide spectrum of fruit and vegetable juices, concentrates, dehydrated products, botanical extracts, and flavorings. Customers for the Ingredients Operations segment include large multinational food and beverage companies, smaller independent manufacturers, and retail organizations. FruitSmart, Inc. ('FruitSmart'), Silva International, Inc. ('Silva'), and Shank's Extracts, LLC d/b/a Universal Ingredients-Shank's ('Universal Ingredients-Shank's') are the primary operations for the Ingredients Operations segment. FruitSmart supplies a broad set of juices, concentrates, pomaces, purees, fruit fibers, seeds, seed powders, and other value-added products to food, beverage, and flavor companies throughout the United States and internationally. Silva procures dehydrated vegetables, fruits, and herbs from around the world and specializes in processing natural materials into custom designed dehydrated vegetable and fruit-based ingredients for a variety of end products. Universal Ingredients-Shank's offers a diversified portfolio of botanical extracts, distillates, natural flavors, and color for industrial and private label customers worldwide, and is known for their significant vanilla expertise. Universal Ingredients - Shank's is also equipped to offer customers custom bottling and packaging for their products. Universal incurs corporate overhead expenses related to senior management, sales, finance, legal, and other functions that are centralized at its corporate headquarters, as well as functions performed at several sales and administrative offices around the world. These overhead expenses are currently allocated to the reportable operating segments, generally on the basis of projected annual financial and operational performance, including volumes planned to be purchased and/or processed. Management believes this method of allocation is currently representative of the value of the related services provided to the operating segments. The CODM, which has been identified as a group comprised of the Company's Chief Executive Officer, Chief Operating Officer, and Chief Financial Officer, currently evaluates the performance of the operating segments based on operating income after allocated overhead expenses, plus equity in the pretax earnings of unconsolidated affiliates ("Segment Operating Income"). The CODM also uses Segment Operating Income for planning, forecasting, and allocating capital and other resources to the operating segments. Operating results for the Company's reportable segments for each period presented in the consolidated statements of income were as follows: Fiscal Year Ended March 31, 2025 Fiscal Year Ended March 31, 2024 (in thousands of dollars) Tobacco Operations Ingredients Operations Consolidated Tobacco Operations Ingredients Operations Consolidated Sales and other operating revenues $ 2,608,675 $ 338,609 $ 2,947,284 $ 2,438,775 $ 309,798 $ 2,748,573 Cost of goods sold (2,133,063 ) (265,564 ) (2,398,627 ) (1,975,955 ) (236,520 ) (2,212,475 ) Selling, general and administrative expenses (179,340 ) (48,610 ) (227,950 ) (179,569 ) (56,624 ) (236,193 ) Corporate overhead allocated to the segments (65,195 ) (12,142 ) (77,337 ) (61,655 ) (12,718 ) (74,373 ) Equity in pretax earnings (loss) of unconsolidated affiliates (1) 9,103 — 9,103 756 — 756 Segment operating income 240,180 12,293 252,473 222,352 3,936 226,288 Deduct: Equity in pretax (earnings) loss of unconsolidated affiliates (1) (9,103 ) (756 ) Restructuring and impairment costs (2) (10,573 ) (3,523 ) Consolidated operating income $ 232,797 $ 222,009 Expand (1) Equity in pretax earnings of unconsolidated affiliates is included in reportable segment operating income, but is reported below consolidated operating income and excluded from that total in the consolidated statements of income. (2) Expand
Yahoo
2 days ago
- Business
- Yahoo
CooperCompanies Announces Second Quarter 2025 Results
SAN RAMON, Calif., May 29, 2025 (GLOBE NEWSWIRE) -- CooperCompanies (Nasdaq: COO), a leading global medical device company, today announced financial results for its fiscal second quarter ended April 30, 2025. Revenue increased 6% year-over-year to $1,002.3 million. CooperVision (CVI) revenue up 5% to $669.6 million, and CooperSurgical (CSI) revenue up 8% to $332.7 million. GAAP diluted earnings per share (EPS) of $0.44, consistent with last year's second quarter. Non-GAAP diluted EPS of $0.96, up $0.11 or 14% from last year's second quarter. See "Reconciliation of Selected GAAP Results to Non-GAAP Results" below. Commenting on the results, Al White, CooperCompanies' President and CEO said, "This was another solid quarter driven by double-digit growth in CooperVision's daily silicone hydrogel portfolio and CooperSurgical's office and surgical portfolio. As we move forward, our teams remain focused on taking share, delivering leverage, launching products and completing capacity expansion projects." Second Quarter Operating Results Revenue of $1,002.3 million, up 6% from last year's second quarter, up 7% in constant currency, up 7% organically. Gross margin of 68% compared with 67% in last year's second quarter driven by efficiency gains and mix. On a non-GAAP basis, gross margin was 68%, up from 67% last year. Operating margin of 18% compared with 17% in last year's second quarter driven by stronger gross margins and targeted expense leverage. On a non-GAAP basis, operating margin was 25%, up from 24% last year. Interest expense of $24.2 million compared with $28.9 million in last year's second quarter driven by lower interest rates and lower average debt. On a non-GAAP basis, interest expense was $23.5 million, down from $27.5 million. Cash provided by operations of $96.2 million offset by capital expenditures of $78.1 million resulted in free cash flow of $18.1 million. Second Quarter CooperVision (CVI) Revenue Revenue of $669.6 million, up 5% from last year's second quarter, up 7% in constant currency, up 7% organically. Revenue by category: % change y/y (In millions) Reported CurrencyImpact ConstantCurrency AcquisitionsandDivestitures Organic 2Q25 Toric and multifocal $ 328.4 6% 1% 7% —% 7% Sphere, other 341.2 5% 1% 6% —% 6% Total $ 669.6 5% 2% 7% —% 7% Revenue by geography: % change y/y (In millions) Reported CurrencyImpact ConstantCurrency AcquisitionsandDivestitures Organic 2Q25 Americas $ 282.4 7% 1% 8% —% 8% EMEA 248.6 5% 1% 6% —% 6% Asia Pacific 138.6 3% 2% 5% —% 5% Total $ 669.6 5% 2% 7% —% 7% Second Quarter CooperSurgical (CSI) Revenue Revenue of $332.7 million, up 8% from last year's second quarter, up 9% in constant currency, up 7% organically. Revenue by category: % change y/y (In millions) Reported CurrencyImpact ConstantCurrency AcquisitionsandDivestitures Organic 2Q25 Office and surgical $ 205.8 13% —% 13% (3)% 10% Fertility 126.9 3% 1% 4% (2)% 2% Total $ 332.7 8% 1% 9% (2)% 7% Other During the second quarter of fiscal 2025, the company repurchased $40.6 million of common stock, roughly 537.2 thousand shares, under the existing share repurchase program at an average share price of $75.60. The program has $215.8 million of remaining availability. Fiscal Year 2025 Financial Guidance The Company updated its fiscal year 2025 financial guidance. Details are summarized as follows: Fiscal 2025 total revenue of $4,107 - $4,146 million (organic growth of 5% to 6%) CVI revenue of $2,759 - $2,786 million (organic growth of 6% to 7%) CSI revenue of $1,347 - $1,359 million (organic growth of 3.5% to 4.5%) Fiscal 2025 non-GAAP diluted EPS of $4.05 - $4.11 Non-GAAP diluted earnings per share guidance excludes amortization and impairment of intangible assets, and certain income or gains and charges or expenses including acquisition and integration costs which we may incur as part of our continuing operations. With respect to the Company's guidance expectations, the Company has not reconciled non-GAAP diluted earnings per share guidance to GAAP diluted earnings per share due to the inherent difficulty in forecasting acquisition-related, integration and restructuring charges and expenses, which are reconciling items between the non-GAAP and GAAP measure. Due to the unknown effect, timing and potential significance of such charges and expenses that impact GAAP diluted earnings per share, the Company is not able to provide such guidance. Reconciliation of Selected GAAP Results to Non-GAAP Results To supplement our financial results and guidance presented on a GAAP basis, we provide non-GAAP measures such as non-GAAP gross margin, non-GAAP operating margin, non-GAAP diluted earnings per share, as well as constant currency and organic revenue growth because we believe they are helpful for the investors to understand our consolidated operating results. Management uses supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, to make operating decisions, and to plan and forecast for future periods. The non-GAAP measures exclude costs which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. We provide further details of the non-GAAP adjustments made to arrive at our non-GAAP measures in the GAAP to non-GAAP reconciliations below. Our non-GAAP financial results and guidance are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. To present constant currency revenue growth, current period revenue for entities reporting in currencies other than the United States dollar are converted into United States dollars at the average foreign exchange rates for the corresponding period in the prior year. To present organic revenue growth, we excluded the effect of foreign currency fluctuations and the impact of any acquisitions, divestitures and discontinuations that occurred in the comparable period. We define the non-GAAP measure of free cash flow as cash provided by operating activities less capital expenditures. We believe free cash flow is useful for investors as an additional measure of liquidity because it represents cash that is available to grow the business, make strategic acquisitions, repay debt, or buyback common stock. Management uses free cash flow internally to understand, manage, make operating decisions and evaluate our business. In addition, we use free cash flow to help plan and forecast future periods. Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. THE COOPER COMPANIES, INC. AND SUBSIDIARIES GAAP to Non-GAAP ReconciliationGross Margin, Operating Margin, and EPS Three Months Ended April 30, Six Months Ended April 30, (In millions) 2025 Margin % 2024 Margin % 2025 Margin % 2024 Margin % GAAP Gross Profit $ 679.1 68 % $ 631.2 67 % $ 1,339.3 68 % $ 1,255.0 67 % Acquisition and integration-related charges(1) 2.1 — % 0.4 — % 3.8 — % 1.2 — % Exit of business(2) — — % 0.4 — % — — % 0.5 — % Medical device regulations(3) 0.7 — % 0.7 — % 1.3 — % 1.7 — % Business optimization charges(4) — — % 1.7 — % — — % 3.3 — % Total 2.8 — % 3.2 — % 5.1 — % 6.7 — % Non-GAAP Gross Profit $ 681.9 68 % $ 634.4 67 % $ 1,344.4 68 % $ 1,261.7 67 % Three Months Ended April 30, Six Months Ended April 30, (In millions) 2025 Margin % 2024 Margin % 2025 Margin % 2024 Margin % GAAP Operating Income $ 184.8 18 % $ 161.7 17 % $ 366.8 19 % $ 314.8 17 % Amortization of acquired intangibles 49.8 5 % 50.3 5 % 99.4 5 % 100.6 5 % Acquisition and integration-related charges (1) 9.6 1 % 1.8 — % 13.9 1 % 12.3 1 % Exit of business (2) — — % 1.1 — % — — % 1.5 — % Medical device regulations (3) 5.3 1 % 5.0 1 % 10.7 1 % 10.2 1 % Business optimization charges (4) — — % 4.2 1 % — — % 11.0 — % Other (5) — — % 0.7 — % 0.6 — % 1.5 — % Total 64.7 7 % 63.1 7 % 124.6 7 % $ 137.1 7 % Non-GAAP Operating Income $ 249.5 25 % $ 224.8 24 % $ 491.4 26 % $ 451.9 24 % Three Months Ended April 30, Six Months Ended April 30, (In millions, except per share amounts) 2025 EPS 2024 EPS 2025 EPS 2024 EPS GAAP Net Income $ 87.7 $ 0.44 $ 88.9 $ 0.44 $ 192.0 $ 0.96 $ 170.1 $ 0.85 Amortization of acquired intangibles 49.8 0.24 50.3 0.25 99.4 0.49 100.6 0.50 Acquisition and integration-related charges(1) 9.6 0.05 1.8 0.01 13.9 0.07 12.3 0.06 Exit of business(2) — — 1.1 0.01 — — 1.5 0.01 Medical device regulations(3) 5.3 0.02 5.0 0.03 10.7 0.05 10.2 0.06 Business optimization charges(4) — — 4.2 0.02 — — 11.0 0.04 Other(5) 17.4 0.09 3.6 0.02 19.9 0.10 7.2 0.04 Tax effects related to the above items (11.1 ) (0.06 ) (14.1 ) (0.07 ) (25.8 ) (0.13 ) (33.9 ) (0.17 ) Intra-entity asset transfers(6) 34.8 0.18 28.7 0.14 67.8 0.34 61.1 0.31 Total 105.8 0.52 80.6 0.41 185.9 0.92 170.0 0.85 Non-GAAP Net Income $ 193.5 $ 0.96 $ 169.5 $ 0.85 $ 377.9 $ 1.88 $ 340.1 $ 1.70 Weighted average diluted shares used 200.7 200.5 200.9 200.2 EPS, amounts and percentages may not sum or recalculate due to rounding. (1) Charges include the direct effects of acquisition accounting, such as amortization of inventory fair value step-up, professional services fees, regulatory fees and changes in fair value of contingent considerations, and items related to integrating acquired businesses, such as redundant personnel costs for transitional employees, acquisition-related non-cash cumulative true up adjustments reflecting changes in compensation, other acquired employee related costs, and integration-related professional services, manufacturing integration costs, legal entity and facility rationalization and other integration-related activities. The acquisition and integration-related charges in fiscal 2025 were primarily related to the obp Surgical and the Cook Medical acquisition and integration expenses. The acquisition and integration-related charges in fiscal 2024 were primarily related to the Cook Medical acquisition and integration expenses. Charges included $3.5 million and $4.8 million related to redundant personnel costs for transitional employees, $1.1 million and $2.4 million of professional services fees, $1.2 million and $2.1 million of inventory fair value step-up amortization, $1.1 million and $1.8 million of facility rationalization costs, and $0.3 million and $0.4 million of other acquisition and integration-related activities in the three and six months ended April 30, 2025. The three months ended April 30, 2025 also included $2.4 million of acquisition-related non-cash cumulative true-up adjustments reflecting changes in compensation. Charges included $0.9 million and $4.9 million related to redundant personnel costs for transitional employees, $0.6 million and $3.7 million of professional services fees, $0.1 million and $0.8 million of manufacturing integration costs, and $0.2 million and $2.9 million of other acquisition and integration-related activities in the three and six months ended April 30, 2024. (2) Charges include costs related to product line exits such as inventory write-offs, site closure costs, contract termination costs and specifically-identified long-lived asset write-offs. There were no exit of business charges in the three and six months ended April 30, 2025. Charges included $0.9 million and $0.9 million of write-offs of long-lived assets, $0.2 million and $0.6 million of other costs related to product line exits in the three and six months ended April 30, 2024. (3) Charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be limited to a specific time period. (4) Charges represent the costs associated with initiatives to increase efficiencies across the organization and optimize our overall cost structure, including changes to our IT infrastructure and operations, employee severance costs, legal entity and other business reorganizations, write-offs or impairments of certain long-lived assets associated with the business optimization activities. There were no business optimization charges in the three and six months ended April 30, 2025. Charges included $2.1 million and $8.1 million of employee severance costs, $1.0 million $1.3 million related to changes to our IT infrastructure and operations, and $1.1 million and $1.6 million of legal entity and other business reorganizations costs in the three and six months ended April 30, 2024. (5) Charges include certain business disruptions from natural causes, litigation matters and other items that are not part of ordinary operations. The adjustments to arrive at non-GAAP net income also include gains and losses on minority interest investments and accretion of interest attributable to acquisition installment payables. Charges in the three months ended April 30, 2025 included $16.7 million of gains and losses on minority interest investments, of which $15.7 million was related to loss on disposal of a minority interest investment, and $0.7 million of accretion of interest attributable to acquisition installment payables. Charges in the six months ended April 30, 2025 included $17.9 million of gains and losses on a minority interest investment, $1.4 million of accretion of interest attributable to acquisition installment payables, and $0.6 million legal fees. Charges included $1.5 million and $2.9 million of gains and losses on minority interest investments, $1.3 million and $2.7 million of accretion of interest attributable to acquisition installment payables, and $0.8 million and $1.6 million related to legal matters in the three and six months ended April 30, 2024. (6) In fiscal 2021, the Company transferred its CooperVision intellectual property and goodwill to its UK subsidiary. As a result, we recorded a deferred tax asset equal to approximately $2.0 billion as a one-time tax benefit in accordance with U.S. GAAP in fiscal 2021 as subsequently adjusted for changes in UK tax law. The non-GAAP adjustments reflect the ongoing net deferred tax benefit from tax amortization each period under UK tax law. Audio Webcast and Conference Call The Company will host an audio webcast today for the public, investors, analysts and news media to discuss its second quarter results and current corporate developments. The audio webcast will be broadcast live on CooperCompanies' website, at approximately 5:00 PM ET. It will also be available for replay on CooperCompanies' website, Alternatively, you can dial in to the conference call at 800-715-9871; conference ID 1515103. About CooperCompanies CooperCompanies (Nasdaq: COO) is a leading global medical device company focused on helping people experience life's beautiful moments through its two business units, CooperVision and CooperSurgical. CooperVision is a trusted leader in the contact lens industry, helping to improve the way people see each day. CooperSurgical is a leading fertility and women's healthcare company dedicated to putting time on the side of women, babies, and families at the healthcare moments that matter most. Headquartered in San Ramon, CA, CooperCompanies has a workforce of more than 16,000, sells products in over 130 countries, and positively impacts over fifty million lives each year. For more information, please visit Forward-Looking Statements This earnings release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Statements relating to guidance, plans, prospects, goals, strategies, future actions, events or performance and other statements of which are other than statements of historical fact, including our fiscal year 2025 financial guidance, are forward looking. In addition, all statements regarding anticipated growth in our revenues, anticipated effects of any product recalls, anticipated market conditions, planned product launches, restructuring or business transition expectations, regulatory plans, and expected results of operations and integration of any acquisition are forward-looking. To identify these statements look for words like "believes," "outlook," "probable," "expects," "may," "will," "should," "could," "seeks," "intends," "plans," "estimates" or "anticipates" and similar words or phrases. Forward-looking statements necessarily depend on assumptions, data or methods that may be incorrect or imprecise and are subject to risks and uncertainties. Among the factors that could cause our actual results and future actions to differ materially from those described in forward-looking statements are: adverse changes in the global or regional general business, political and economic conditions including the impact of continuing uncertainty and instability of certain countries, man-made or natural disasters and pandemic conditions, that could adversely affect our global markets, and the potential adverse economic impact and related uncertainty caused by these items; the impact of international conflicts and the global response to international conflicts on the global and local economy, financial markets, energy markets, currency rates and our ability to supply product to, or through, affected countries; our substantial and expanding international operations and the challenges of managing an organization spread throughout multiple countries and complying with a variety of legal, compliance and regulatory requirements; the actual imposition or threats of tariffs, customs duties and fees by the U.S. government and other nations in response and other retaliatory actions, such as trade protection measures, import or export licensing requirements, new or different customs duties, trade embargoes and sanctions and other trade barriers, as well as the impact of the Company's efforts to mitigate the effect of such tariffs; foreign currency exchange rate and interest rate fluctuations including the risk of fluctuations in the value of foreign currencies or interest rates that would decrease our net sales and earnings; our existing and future variable rate indebtedness and associated interest expense is impacted by rate increases, which could adversely affect our financial health or limit our ability to borrow additional funds; changes in tax laws, examinations by tax authorities, and changes in our geographic composition of income; acquisition-related adverse effects including the failure to successfully achieve the anticipated net sales, margins and earnings benefits of acquisitions, integration delays or costs and the requirement to record significant adjustments to the preliminary fair value of assets acquired and liabilities assumed within the measurement period, required regulatory approvals for an acquisition not being obtained or being delayed or subject to conditions that are not anticipated, adverse impacts of changes to accounting controls and reporting procedures, contingent liabilities or indemnification obligations, increased leverage and lack of access to available financing (including financing for the acquisition or refinancing of debt owed by us on a timely basis and on reasonable terms); compliance costs and potential liability in connection with U.S. and foreign laws and health care regulations pertaining to privacy and security of personal information such as the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the California Consumer Privacy Act (CCPA) in the U.S. and the General Data Protection Regulation (GDPR) requirements in Europe, including but not limited to those resulting from data security breaches; a major disruption in the operations of our manufacturing, accounting and financial reporting, research and development, distribution facilities or raw material supply chain due to challenges associated with integration of acquisitions, man-made or natural disasters, pandemic conditions, cybersecurity incidents or other causes; a major disruption in the operations of our manufacturing, accounting and financial reporting, research and development or distribution facilities due to the failure to perform by third-party vendors, including cloud computing providers or other technological problems, including any related to our information systems maintenance, enhancements or new system deployments, integrations or upgrades; a successful cybersecurity attack which could interrupt or disrupt our information technology systems, or those of our third-party service providers, or cause the loss of confidential or protected data; market consolidation of large customers globally through mergers or acquisitions resulting in a larger proportion or concentration of our business being derived from fewer customers; disruptions in supplies of raw materials, particularly components used to manufacture our silicone hydrogel lenses; new U.S. and foreign government laws and regulations, and changes in existing laws, regulations and enforcement guidance, which affect areas of our operations including, but not limited to, those affecting the health care industry, including the contact lens industry specifically and the medical device or pharmaceutical industries generally, including but not limited to the EU Medical Devices Regulation (MDR), and the EU In Vitro Diagnostic Medical Devices Regulation (IVDR); legal costs, insurance expenses, settlement costs and the risk of an adverse decision, prohibitive injunction or settlement related to product liability, patent infringement, contractual disputes, or other litigation; limitations on sales following product introductions due to poor market acceptance; new competitors, product innovations or technologies, including but not limited to, technological advances by competitors, new products and patents attained by competitors, and competitors' expansion through acquisitions; reduced sales, loss of customers, reputational harm and costs and expenses, including from claims and litigation related to product recalls and warning letters; failure to receive, or delays in receiving, regulatory approvals or certifications for products; failure of our customers and end users to obtain adequate coverage and reimbursement from third-party payers for our products and services; the requirement to provide for a significant liability or to write off, or accelerate depreciation on, a significant asset, including goodwill, other intangible assets and idle manufacturing facilities and equipment; the success of our research and development activities and other start-up projects; dilution to earnings per share from acquisitions or issuing stock; impact and costs incurred from changes in accounting standards and policies; risks related to environmental laws and requirements applicable to our facilities, products or manufacturing processes, including evolving regulations regarding the use of hazardous substances or chemicals in our products; risks related to environmental, social and corporate governance (ESG) issues, including those related to regulatory and disclosure requirements, climate change and sustainability; and other events described in our Securities and Exchange Commission filings, including the 'Business', 'Risk Factors' and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2024, as such Risk Factors may be updated in annual and quarterly filings. We caution investors that forward-looking statements reflect our analysis only on their stated date. We disclaim any intent to update them except as required by law. Contact: Kim DuncanVice President, Investor Relations and Risk Management925-460-3663ir@ COOPER COMPANIES, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets(In millions)(Unaudited) April 30, 2025 October 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 116.2 $ 107.6 Trade receivables, net 780.9 717.0 Inventories 880.3 802.7 Prepaid expense and other current assets 348.3 324.2 Total current assets 2,125.7 1,951.5 Property, plant and equipment, net 1,928.5 1,863.4 Goodwill 3,864.7 3,838.4 Other intangibles, net 1,694.0 1,791.0 Deferred tax assets 2,141.7 2,210.3 Other assets 659.0 660.6 Total assets $ 12,413.6 $ 12,315.2 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term debt $ 59.8 $ 33.3 Accounts Payable 244.2 260.5 Employee compensation and benefits 157.1 174.8 Deferred revenue 127.6 129.9 Other current liabilities 423.8 424.3 Total current liabilities 1,012.5 1,022.8 Long-term debt 2,525.6 2,550.4 Deferred tax liabilities 99.1 96.0 Long-term tax payable 17.7 57.5 Deferred revenue 196.4 193.3 Other liabilities 274.2 311.6 Total liabilities 4,125.5 4,231.6 Stockholders' equity 8,288.1 8,083.6 Total liabilities and stockholders' equity $ 12,413.6 $ 12,315.2 THE COOPER COMPANIES, INC. AND SUBSIDIARIES Consolidated Statements of Income(In millions, except per share amounts)(Unaudited) Three Months EndedApril 30, Six Months EndedApril 30, 2025 2024 2025 2024 Net sales $ 1,002.3 $ 942.6 $ 1,967.0 $ 1,874.2 Cost of sales 323.2 311.4 627.7 619.2 Gross profit 679.1 631.2 1,339.3 1,255.0 Selling, general and administrative expense 399.0 380.3 786.9 761.2 Research and development expense 45.5 38.9 86.2 78.4 Amortization of intangibles 49.8 50.3 99.4 100.6 Operating income 184.8 161.7 366.8 314.8 Interest expense 24.2 28.9 50.2 58.8 Other expense, net 16.1 2.8 18.8 6.0 Income before income taxes 144.5 130.0 297.8 250.0 Provision for income taxes 56.8 41.1 105.8 79.9 Net income $ 87.7 $ 88.9 $ 192.0 $ 170.1 Earnings per share - diluted $ 0.44 $ 0.44 $ 0.96 $ 0.85 Number of shares used to compute diluted earnings per share 200.7 200.5 $ 200.9 200.2 THE COOPER COMPANIES, INC. AND SUBSIDIARIES GAAP to Non-GAAP ReconciliationConstant Currency Revenue Growth and Organic Revenue Growth Net Sales % change y/y (In millions) Reported CurrencyImpact ConstantCurrency AcquisitionsandDivestitures Organic 2Q25 CooperVision $ 669.6 5 % 2 % 7 % — % 7 % CooperSurgical 332.7 8 % 1 % 9 % (2) % 7 % Total $ 1,002.3 6 % 1 % 7 % — % 7 %
Business Wire
2 days ago
- Business
- Business Wire
UiPath Reports First Quarter Fiscal 2026 Financial Results
NEW YORK--(BUSINESS WIRE)--UiPath, Inc. (NYSE: PATH), a global leader in agentic automation, today announced financial results for its first quarter fiscal 2026 ended April 30, 2025. 'I'm pleased with our first quarter results, highlighted by ARR of $1.693 billion, up 12 percent year-over-year, a reflection of our improved execution and the meaningful ROI our customers are realizing through our automation platform,' said Daniel Dines, UiPath Founder and Chief Executive Officer. "This was a milestone quarter for UiPath, marked by the launch of our agentic automation platform, a meaningful step forward in our product evolution. We're encouraged by the early response from customers, partners, and the broader ecosystem, which underscores the growing interest in agentic automation as a key part of the enterprise automation journey. As we continue to bring this next generation of capabilities to market, we remain confident in our strategy, our differentiation, and the opportunity ahead.' First Quarter Fiscal 2026 Financial Highlights Revenue of $357 million increased 6 percent year-over-year. ARR of $1.693 billion as of April 30, 2025 increased 12 percent year-over-year. Net new ARR of $27 million. Dollar based net retention rate of 108 percent. GAAP gross margin was 82 percent. Non-GAAP gross margin was 84 percent GAAP operating loss was $(16) million. Non-GAAP operating income was $70 million. Net cash flow from operations was $119 million. Non-GAAP adjusted free cash flow was $117 million. Cash, cash equivalents, and marketable securities Financial Outlook 'We delivered a strong start to the year, with first quarter results exceeding our guidance on both the top and bottom line, and achieving significant year-over-year expansion in non-GAAP operating margin,' said Ashim Gupta, UiPath Chief Operating Officer and Chief Financial Officer. 'As we look to the remainder of the year, we remain focused on executing our strategy, investing in innovation and maintaining operational discipline to drive sustainable growth and profitability.' For the second quarter fiscal 2026, UiPath expects: Revenue in the range of $345 million to $350 million ARR in the range of $1.715 billion to $1.720 billion as of July 31, 2025 Non-GAAP operating income of approximately $40 million For the full year fiscal 2026, UiPath expects: Revenue in the range of $1.549 billion to $1.554 billion ARR in the range of $1.820 billion to $1.825 billion as of January 31, 2026 Non-GAAP operating income of approximately $305 million Reconciliation of non-GAAP operating income guidance to the most directly comparable GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity, and low visibility with respect to the charges excluded from this non-GAAP measure; in particular, the effects of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. We expect the variability of the above charges to have a significant, and potentially unpredictable, impact on our future GAAP financial results. Recent Business Highlights Launched the First Enterprise-Grade Platform for Agentic Automation: UiPath launched its next-generation UiPath Platform™ for agentic automation, a groundbreaking platform designed to unify AI agents, robots, and people on a single intelligent system. With open and secure orchestration at its core, the platform transforms workflows by enabling the creation, deployment, and management of highly reliable AI agents, robots, and people with unmatched scalability, flexibility, and compliance. The UiPath Platform for Agentic Automation features UiPath Maestro, controlled agency, capabilities for developers to rapidly prototype agents in UiPath Agent Builder, integration with third-party agent frameworks, UiPath IXP (Intelligent Xtraction & Processing), and UI Agent for computer use. Launched Test Cloud to Bring AI Agents to Software Testing: UiPath launched UiPath Test Cloud, a revolutionary new approach to software testing that uses advanced AI to amplify tester productivity across the entire testing lifecycle for exceptional efficiency and cost savings. UiPath Test Cloud is a full-featured testing offering that equips software testing teams with enterprise-ready, production-grade, resilient end-to-end automation for modern and enterprise applications. Advanced its Open Agentic Ecosystem Through Bi-Directional Integrations with Microsoft Copilot Studio: UiPath announced new capabilities that enable the orchestration of Microsoft Copilot Studio agents alongside UiPath and other third-party agents using UiPath Maestro™. Developers can now embed UiPath automations and AI agents directly into Microsoft Copilot Studio and integrate Copilot agents within UiPath Studio — all while orchestrating seamlessly across platforms with UiPath Maestro. This capability facilitates seamless interaction between UiPath and Microsoft agents and automations — allowing customers to automate complex end-to-end processes, enable contextual decision-making, improve scalability, and unlock new levels of productivity. Named a Leader in IDC MarketScape: Worldwide Business Automation Platforms 2025 Vendor Assessment: UiPath was named a Leader in the IDC MarketScape: Worldwide Business Automation Platforms 2025 Vendor Assessment. According to the report, 'UiPath has a strong vision for end-to-end orchestration and delivery of agentic automation capabilities, with the opportunity to disrupt traditional process execution.' UiPath offers a broad platform of sophisticated automation functionality and strong vision for end-to-end orchestration and delivery of agentic automation capabilities, with the opportunity to disrupt traditional business process execution. Recognized as a Leader in the Everest Group Intelligent Document Processing (IDP) Products PEAK Matrix® Assessment 2025: UiPath was named a Leader in Intelligent Document Processing for the third consecutive year in the Everest Group Intelligent Document Processing (IDP) Products PEAK Matrix® Assessment 2025. The report also positioned UiPath as a Leader in 10 Banking and Financial Services (BFS) IDP products. Recognized Fast Track Partners for Their Innovation with Agentic Automation: UiPath honored partners with a badge of distinction for being a UiPath Agentic Automation Fast Track Partner. This recognition is granted to select UiPath partners that have received early access and training in agentic automation capabilities from UiPath, have identified use cases for customers where agents can help augment end-to-end process automation, and have contributed to further development of UiPath agentic automation solutions. Announced AI Partnership with Google Cloud to Transform Medical Processes: at Google Cloud Next 2025, UiPath announced the launch of its generative AI-based UiPath Medical Record Summarization agent, powered by Google Cloud Vertex AI and Gemini models. The UiPath Medical Record Summarization AI agent empowers both payer and provider organizations to take complete advantage of the combined power of generative AI and agentic automation. Developed in partnership with top clinical professionals, the solution leverages Google Gemini 2.0 Flash through Vertex AI to create a more efficient and accurate way to analyze medical documents. Conference Call and Webcast UiPath will host a conference call today, Thursday, May 29, 2025, at 5:00 p.m. Eastern Time, to discuss the Company's first quarter fiscal 2026 financial results and its guidance for the second quarter and full year fiscal 2026. To access this call, dial 1-201-689-8057 (domestic) or 1-877-407-8309 (international). The passcode is 13753232. A live webcast of this conference call will be available on the "Investor Relations" page of UiPath's website ( and a replay will also be archived on the website for one year. About UiPath UiPath (NYSE: PATH) is a global leader in agentic automation, empowering enterprises to harness the full potential of AI agents to autonomously execute and optimize complex business processes. The UiPath Platform™ uniquely combines controlled agency, developer flexibility, and seamless integration to help organizations scale agentic automation safely and confidently. Committed to security, governance, and interoperability, UiPath supports enterprises as they transition into a future where automation delivers on the full potential of AI to transform industries. For more information, visit Forward-Looking Statements Statements we make in this press release may include statements which are not historical facts and are considered forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995, which are usually identified by the use of words such as 'anticipates,' 'believes,' 'estimates,' 'expects,' 'intends,' 'may,' 'plans,' 'possible,' 'projects,' 'outlook,' 'seeks,' 'should,' 'will,' and variations of such words or similar expressions, including the negatives of these words or similar expressions. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are making this statement for purposes of complying with those safe harbor provisions. These forward-looking statements include, but are not limited to, statements regarding: our financial guidance for the second fiscal quarter 2026 and the full fiscal year 2026; our ability to drive and accelerate future growth and operational efficiency and grow our platform, product offerings, and market opportunity; our business strategy; plans and objectives of management for future operations; the estimated addressable market opportunity for our platform and the growth of the enterprise automation market; the success of our platform and new releases including the incorporation of AI; the success of our collaborations with third parties; our customers' behaviors and potential automation spend; and details of UiPath's stock repurchase program. Forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: our expectations regarding our revenue, annualized renewal run-rate (ARR), expenses, and other operating results; our ability to effectively manage our growth and achieve or sustain profitability; our ability to acquire new customers and successfully retain existing customers; the ability of the UiPath Platform™ to satisfy and adapt to customer demands and our ability to increase its adoption; our ability to grow our platform and release new functionality in a timely manner; future investments in our business, our anticipated capital expenditures, and our estimates regarding our capital requirements; the costs and success of our marketing efforts and our ability to evolve and enhance our brand; our growth strategies; the estimated addressable market opportunity for our platform and for automation in general; our reliance on key personnel and our ability to attract, integrate, and retain highly-qualified personnel and execute management transitions; our ability to obtain, maintain, and enforce our intellectual property rights and any costs associated therewith; the effect of significant events with macroeconomic impacts, including but not limited to military conflicts and other changes in geopolitical relationships and inflationary cost trends, on our business, industry, and the global economy; our reliance on third-party providers of cloud-based infrastructure; our ability to compete effectively with existing competitors and new market entrants, including new, potentially disruptive technologies; the size and growth rates of the markets in which we compete; and the price volatility of our Class A common stock. Further information on risks that could cause actual results to differ materially from our guidance and other forward-looking statements can be found in our Annual Report on Form 10-K for the fiscal year ended January 31, 2025 filed with the United States Securities and Exchange Commission (SEC) on March 24, 2025, and other filings and reports that we may file from time to time with the SEC. Any forward-looking statements contained in this press release are based on assumptions that we believe to be reasonable as of this date. Except as required by law, we assume no obligation to update these forward-looking statements. Key Performance Metric Annualized Renewal Run-rate (ARR) is the key performance metric we use in managing our business because it illustrates our ability to acquire new subscription customers and to maintain and expand our relationships with existing subscription customers. We define ARR as annualized invoiced amounts per solution SKU from subscription licenses and maintenance and support obligations assuming no increases or reductions in customers' subscriptions. ARR does not include the costs we may incur to obtain such subscription licenses or provide such maintenance and support. ARR also does not reflect nonrecurring rebates payable to partners (upon establishing sufficient history of their nonrecurring nature), the impact of nonrecurring incentives (such as one-time discounts provided under sales promotional programs), and any actual or anticipated reductions in invoiced value due to contract non-renewals or service cancellations other than for certain reserves (for example those for credit losses or disputed amounts). ARR does not include invoiced amounts associated with perpetual licenses or professional services. ARR is not a forecast of future revenue, which is impacted by contract start and end dates and duration. ARR should be viewed independently of revenue and deferred revenue as ARR is an operating metric and is not intended to replace these items. Dollar-based net retention rate represents the rate of net expansion of our ARR from existing customers over the preceding 12 months. We calculate dollar-based net retention rate as of a period end by starting with ARR from the cohort of all customers as of 12 months prior to such period end (Prior Period ARR). We then calculate the ARR from these same customers as of the current period end (Current Period ARR). Current Period ARR includes any expansion and is net of any contraction or attrition over the preceding 12 months but does not include ARR from new customers in the current period. We then divide total Current Period ARR by total Prior Period ARR to arrive at dollar-based net retention rate. Dollar-based net retention rate may fluctuate based on the customers that qualify to be included in the cohort used for calculation and may not reflect our actual performance. Investors should not place undue reliance on ARR or dollar-based net retention rate as an indicator of future or expected results. Our presentation of these metrics may differ from similarly titled metrics presented by other companies and therefore comparability may be limited. Non-GAAP Financial Measures Non-GAAP financial measures are financial measures that are derived from the consolidated financial statements, but that are not presented in accordance with generally accepted accounting principles in the United States (GAAP). This earnings press release includes financial measures defined as non-GAAP financial measures by the SEC, including non-GAAP cost of licenses, non-GAAP cost of subscription services, non-GAAP cost of professional services and other, non-GAAP gross profit and margin, non-GAAP sales and marketing expenses, non-GAAP research and development expenses, non-GAAP general and administrative expenses, non-GAAP operating income and margin, and non-GAAP net income and non-GAAP net income per share. These non-GAAP financial measures exclude: stock-based compensation expense; amortization of acquired intangibles; employer payroll tax expense related to employee equity transactions; restructuring costs; charitable donation of Class A common stock; and in the case of non-GAAP net income, estimated tax adjustments associated with the add-back items, as applicable. Additionally, this earnings release presents non-GAAP adjusted free cash flow, which is calculated by adjusting GAAP operating cash flows for the impact of purchases of property and equipment, cash paid for employer payroll taxes related to employee equity transactions, net payments/receipts of employee tax withholdings on stock option exercises, and cash paid for restructuring costs. UiPath uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, by excluding the effects of items that do not reflect the ordinary earnings of our operations, and as a supplement to GAAP measures. UiPath believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in UiPath's industry, many of which present similar non-GAAP financial measures to investors. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, our financial performance measures prepared in accordance with GAAP. Further, our non-GAAP information may be different from the non-GAAP information provided by other companies. The information below provides a reconciliation of non-GAAP financial measures used in this earnings press release to the most directly comparable GAAP financial measures. We encourage investors to consider our GAAP results alongside our supplemental non-GAAP measures, and to review the reconciliation between GAAP results and non-GAAP measures that is included at the end of this earnings press release. This earnings press release and any future releases containing such non-GAAP reconciliations can also be found on the Investor Relations page of UiPath's website at UiPath, Inc. Condensed Consolidated Balance Sheets in thousands (unaudited) As of April 30, 2025 January 31, 2025 Assets Current assets Cash and cash equivalents $ 700,641 $ 879,196 Restricted cash 438 438 Marketable securities 854,392 750,322 Accounts receivable, net of allowance for credit losses of $1,924 and $1,642, respectively 266,619 451,131 Contract assets 103,150 88,735 Deferred contract acquisition costs 85,162 82,461 Prepaid expenses and other current assets 99,267 86,276 Total current assets 2,109,669 2,338,559 Marketable securities, non-current 36,467 94,113 Contract assets, non-current 2,811 3,447 Deferred contract acquisition costs, non-current 138,381 139,341 Property and equipment, net 41,964 32,740 Operating lease right-of-use assets 66,299 66,500 Intangible assets, net 24,054 7,905 Goodwill 121,371 87,304 Deferred tax assets 29,491 27,963 Other assets, non-current 73,935 67,398 Total assets $ 2,644,442 $ 2,865,270 Liabilities and stockholders' equity Current liabilities Accounts payable $ 16,885 $ 33,178 Accrued expenses and other current liabilities 123,134 83,923 Accrued compensation and employee benefits 44,991 112,355 Deferred revenue 530,857 569,464 Total current liabilities 715,867 798,920 Deferred revenue, non-current 141,169 135,843 Operating lease liabilities, non-current 73,433 74,230 Other liabilities, non-current 15,512 10,515 Total liabilities 945,981 1,019,508 Commitments and contingencies Stockholders' equity Class A common stock 5 5 Class B common stock 1 1 Treasury stock (724,224 ) (494,779 ) Additional paid-in capital 4,403,586 4,333,300 Accumulated other comprehensive income (loss) 29,523 (4,890 ) Accumulated deficit (2,010,430 ) (1,987,875 ) Total stockholders' equity 1,698,461 1,845,762 Total liabilities and stockholders' equity $ 2,644,442 $ 2,865,270 Expand UiPath, Inc. Condensed Consolidated Statements of Cash Flows in thousands (unaudited) Three Months Ended April 30, 2025 2024 Cash flows from operating activities Net loss $ (22,555 ) $ (28,736 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 3,253 4,902 Amortization of deferred contract acquisition costs 21,324 18,467 Net accretion on marketable securities (3,630 ) (9,268 ) Stock-based compensation expense 76,361 88,727 Charitable donation of Class A common stock 4,187 6,564 Non-cash operating lease expense 3,377 3,476 Provision for deferred income taxes 640 569 Other non-cash charges (credits), net 12,704 (966 ) Changes in operating assets and liabilities: Accounts receivable 197,443 162,444 Contract assets (9,460 ) (7,645 ) Deferred contract acquisition costs (13,954 ) (12,437 ) Prepaid expenses and other assets (13,074 ) (803 ) Accounts payable (15,025 ) 3,936 Accrued expenses and other liabilities 12,352 (4,195 ) Accrued compensation and employee benefits (72,534 ) (96,403 ) Operating lease liabilities, net (2,146 ) (3,912 ) Deferred revenue (60,261 ) (24,683 ) Net cash provided by operating activities 119,002 100,037 Cash flows from investing activities Purchases of marketable securities (153,353 ) (323,137 ) Maturities of marketable securities 111,083 360,141 Purchases of property and equipment (12,832 ) (1,238 ) Payments related to business acquisition, net of cash acquired (24,821 ) — Net cash (used in) provided by investing activities (79,923 ) 35,766 Cash flows from financing activities Repurchases of Class A common stock (227,525 ) (22,005 ) Proceeds from exercise of stock options 302 312 Payments of tax withholdings on net settlement of equity awards (12,195 ) (28,959 ) Proceeds from employee stock purchase plan contributions 4,214 4,916 Net cash used in financing activities (235,204 ) (45,736 ) Effect of exchange rate changes 17,570 (5,127 ) Net (decrease) increase in cash, cash equivalents, and restricted cash (178,555 ) 84,940 Cash, cash equivalents, and restricted cash - beginning of period 879,634 1,062,116 Cash, cash equivalents, and restricted cash - end of period $ 701,079 $ 1,147,056 Expand UiPath, Inc. in thousands, except percentages (unaudited) Three Months Ended April 30, 2025 2024 GAAP cost of licenses $ 1,268 $ 2,601 Less: Amortization of acquired intangible assets 240 844 Non-GAAP cost of licenses $ 1,028 $ 1,757 GAAP cost of subscription services $ 38,468 $ 36,754 Less: Stock-based compensation expense 3,874 4,276 Less: Amortization of acquired intangible assets 681 593 Less: Employer payroll tax expense related to employee equity transactions 70 177 Less: Restructuring costs 458 — Non-GAAP cost of subscription services $ 33,385 $ 31,708 GAAP cost of professional services and other $ 24,121 $ 15,970 Less: Stock-based compensation expense 2,728 2,470 Less: Employer payroll tax expense related to employee equity transactions 27 66 Less: Restructuring costs — — Non-GAAP cost of professional services and other $ 21,366 $ 13,434 GAAP gross profit $ 292,767 $ 279,787 GAAP gross margin 82 % 83 % Plus: Stock-based compensation expense 6,602 6,746 Plus: Amortization of acquired intangible assets 921 1,437 Plus: Employer payroll tax expense related to employee equity transactions 97 243 Plus: Restructuring costs 458 — Non-GAAP gross profit $ 300,845 $ 288,213 Non-GAAP gross margin 84 % 86 % Expand UiPath, Inc. in thousands, except percentages (unaudited) Three Months Ended April 30, 2025 2024 GAAP sales and marketing $ 159,661 $ 180,139 Less: Stock-based compensation expense 23,586 36,216 Less: Amortization of acquired intangible assets 456 552 Less: Employer payroll tax expense related to employee equity transactions 447 1,223 Less: Restructuring costs 1,981 — Non-GAAP sales and marketing $ 133,191 $ 142,148 GAAP research and development $ 94,839 $ 85,603 Less: Stock-based compensation expense 34,595 29,142 Less: Employer payroll tax expense related to employee equity transactions 390 630 Less: Restructuring costs (331 ) — Non-GAAP research and development $ 60,185 $ 55,831 GAAP general and administrative $ 54,679 $ 63,510 Less: Stock-based compensation expense 11,578 16,623 Less: Amortization of acquired intangible assets 31 39 Less: Employer payroll tax expense related to employee equity transactions 127 415 Less: Restructuring costs 903 — Less: Charitable donation of Class A common stock 4,187 6,564 Non-GAAP general and administrative $ 37,853 $ 39,869 GAAP operating loss $ (16,412 ) $ (49,465 ) GAAP operating margin (5 )% (15 )% Plus: Stock-based compensation expense 76,361 88,727 Plus: Amortization of acquired intangible assets 1,408 2,028 Plus: Employer payroll tax expense related to employee equity transactions 1,061 2,511 Plus: Restructuring costs 3,011 — Plus: Charitable donation of Class A common stock 4,187 6,564 Non-GAAP operating income $ 69,616 $ 50,365 Non-GAAP operating margin 20 % 15 % Expand UiPath, Inc. in thousands, except per share data (unaudited) Three Months Ended April 30, 2025 2024 GAAP net loss $ (22,555 ) $ (28,736 ) Plus: Stock-based compensation expense 76,361 88,727 Plus: Amortization of acquired intangible assets 1,408 2,028 Plus: Employer payroll tax expense related to employee equity transactions 1,061 2,511 Plus: Restructuring costs 3,011 — Plus: Charitable donation of Class A common stock 4,187 6,564 Tax adjustments to add-backs (3,299 ) 2,124 Non-GAAP net income $ 60,174 $ 73,218 GAAP net loss per share, basic and diluted $ (0.04 ) $ (0.05 ) GAAP weighted average common shares outstanding, basic and diluted 548,451 569,925 Non-GAAP weighted average common shares outstanding, basic 548,451 569,925 Plus: Dilutive potential common shares from outstanding equity awards 4,074 14,389 552,525 584,314 Non-GAAP net income per share, basic $ 0.11 $ 0.13 Non-GAAP net income per share, diluted $ 0.11 $ 0.13 Expand
