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Yahoo
3 days ago
- Business
- Yahoo
PagSeguro Digital Ltd (PAGS) Q2 2025 Earnings Call Highlights: Navigating Growth Amid Economic ...
Release Date: August 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points PagSeguro Digital Ltd (NYSE:PAGS) reported a 4% year-over-year growth in Total Payment Volume (TPV), reaching 130 billion reais. The company's net revenues increased by 11% year over year, reaching BRL5.1 billion, with an impressive 18% growth when excluding interchange fees. Non-GAAP net income grew by 4% compared to Q2 2024, with a diluted EPS on a GAAP basis increasing by 14% year over year. PagSeguro Digital Ltd (NYSE:PAGS) returned 1.1 billion in excess capital to shareholders year-to-date, including 700 million reais in share repurchases and over 400 million as dividends. The banking segment showed exceptional performance, with gross profit growing 97% year over year, now accounting for over 26% of total gross profit. Negative Points The company faced a challenging macroeconomic environment with signs of broad-based economic cooling in Brazil, affecting consumer confidence and discretionary spending. There was a contraction in credit origination in the market due to increased risk aversion and more selective lending standards. Despite the growth, the TPV was flattish quarter-on-quarter, indicating potential market share losses. The MSMB segment experienced a 2% drop in TPV quarter-on-quarter, attributed to macroeconomic challenges and repricing effects. Financial costs rose by 48% primarily due to higher interest rates, impacting the company's profitability. Q & A Highlights Warning! GuruFocus has detected 4 Warning Signs with PAGS. Q: Can you elaborate on the TPV performance, particularly the drop in MSMB TPV, and what can we expect going forward? A: The TPV was affected by several factors, including a challenging macroeconomic environment and a hard comparison with the previous year. We are focusing on profitability rather than TPV growth. Our strategy includes repricing and focusing on client-oriented approaches. We expect to see improvements as we continue to focus on gross profit and EPS rather than TPV alone. - Unidentified_3 Q: How do you plan to manage capital distribution given the solid capital position? A: We are considering share buybacks and dividends as part of our capital distribution strategy. We have returned BRL1.9 billion to shareholders in the last 12 months and are looking to improve our capital structure. We expect to distribute more capital soon, balancing growth and profitability. - Unidentified_3 Q: Can you provide more details on the growth and strategy of your banking business? A: Our banking business is becoming a significant pillar, contributing 26% of total gross profit. We see opportunities in expanding our credit portfolio, particularly in working capital loans for merchants. The banking segment is expected to continue growing and gaining a larger share of our total revenue and gross profit. - Unidentified_3 Q: How do you view the competitive landscape, and are there any concerns about market share? A: We focus on profitability rather than market share. The competitive landscape is rational, with most players focusing on profitability due to high interest rates. We are not seeing any irrational behavior in the market, and our strategy remains centered on client engagement and profitability. - Unidentified_3 Q: What is your approach to managing funding costs, and how do you see this evolving? A: We are focused on managing our funding costs by diversifying our funding sources and optimizing our funding structure. Our APY has decreased, and we aim to maintain competitive costs across different funding products. We do not anticipate significant changes in our funding strategy that would negatively impact our financials. - Unidentified_5 For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
3 days ago
- Business
- Yahoo
JD.com Announces Second Quarter and Interim 2025 Results
BEIJING, Aug. 14, 2025 (GLOBE NEWSWIRE) -- Inc. (NASDAQ: JD and HKEX: 9618 (HKD counter) and 89618 (RMB counter), the 'Company' or ' a leading supply chain-based technology and service provider, today announced its unaudited financial results for the three and six months ended June 30, 2025. Second Quarter 2025 Highlights Net revenues were RMB356.7 billion (US$149.8 billion) for the second quarter of 2025, an increase of 22.4% from the second quarter of 2024. Net income attributable to the Company's ordinary shareholders was RMB6.2 billion (US$0.9 billion) for the second quarter of 2025, compared to RMB12.6 billion for the second quarter of 2024. Non-GAAP2 net income attributable to the Company's ordinary shareholders was RMB7.4 billion (US$1.0 billion) for the second quarter of 2025, compared to RMB14.5 billion for the second quarter of 2024. Diluted net income per ADS was RMB4.15 (US$0.58) for the second quarter of 2025, compared to RMB8.19 for the second quarter of 2024. Non-GAAP diluted net income per ADS was RMB4.97 (US$0.69) for the second quarter of 2025, compared to RMB9.36 for the second quarter of 2024. JD Retail reported net revenues of RMB310.1 billion (US$43.3 billion) for the second quarter of 2025, an increase of 20.6% from the second quarter of 2024. Income from operations of JD Retail was RMB13.9 billion (US$1.9 billion) for the second quarter of 2025, compared to RMB10.1 billion for the second quarter of 2024. Operating margin of JD Retail was 4.5% for the second quarter of 2025, compared to 3.9% for the second quarter of 2024. 'In the second quarter, we saw robust growth in user traffic, quarterly active customers, and user shopping frequency on JD's platform, driven by sustained momentum across both our core JD Retail business and New Businesses including JD Food Delivery,' said Sandy Xu, Chief Executive Officer of 'JD Retail delivered a strong 20.6% year-on-year revenue growth during the quarter, with operating margin reaching 4.5%, a historic high across all promotion quarters. JD Food Delivery also made healthy progress during the quarter in metrics such as order volume growth, merchant base expansion, full-time rider recruitment, and more importantly, synergies with retail and other existing businesses of JD, having successfully achieved our initial strategic goals. Looking ahead, we are confident that our core retail business will remain a solid cornerstone of our operations as we continue to focus on delivering the best user experience, lowering costs, and improving efficiency. At the same time, we will continue to invest in new growth areas in alignment with our long-term strategic roadmap.' 'Our total revenues recorded 22.4% year-on-year growth in the second quarter, a clear testament to the strength of our supply chain and our commitment to superior user experience,' said Ian Su Shan, Chief Financial Officer of 'Our core JD Retail business has also continued to realize its potential in operating efficiency improvement, with gross margin rising year-on-year for thirteen consecutive quarters through Q2, while operating margin has maintained a steady upward trajectory. As our core JD Retail business continues to build steady momentum, we will execute our strategies at the appropriate pace to develop our New Businesses initiatives, including JD Food Delivery, ensuring that each step we take strengthens our long-term value creation capabilities.' Updates of Share Repurchase Program Pursuant to the Company's share repurchase program of up to US$5.0 billion adopted in August 2024 and effective through August 2027, the Company repurchased a total of approximately 80.7 million Class A ordinary shares (equivalent to 40.4 million ADSs) for approximately US$1.5 billion during the six months ended June 30, 2025. The remaining amount under the share repurchase program was US$3.5 billion as of the date of this announcement. The total number of shares repurchased by the Company during the six months ended June 30, 2025 amounted to approximately 2.8% of its ordinary shares outstanding as of December 31, 20243. All of these ordinary shares were repurchased from Nasdaq and the Hong Kong Stock Exchange pursuant to the share repurchase program. Business Highlights JD Retail: During the JD 618 Grand Promotion, JD Supermarket introduced a range of products with distinctive JD features, such as branded milk and yogurt in 211 milliliters and Chinese liquor in both 211- and 618-milliliter packages. JD Supermarket has been providing customers with a differentiated shopping experience through six tailor-made product portfolios: tailor-made packaging, IP, gift sets, craftsmanship, functions and raw material. These efforts also help suppliers avoid homogenized competition and price involution, bringing new growth opportunities for the broader industry. This stands as one of the most concrete manifestations of JD's supply chain strengths. On April 15, officially launched its 'One Step Ahead – Accelerated Upgrade Program' for 3C electronics products. The program aims to support manufacturers to drive new product sales and enhance user experience. With this program, JD is stepping up efforts in sales of emerging categories such as AI glasses and embodied intelligent robots, catering to consumers' diverse upgrade demands and helping to drive industry-wide innovation and growth. In the second quarter of 2025, JD MALL launched new stores in multiple cities including Beijing, Shenzhen, Nanjing, Wuhan and Taiyuan. As of the end of June 2025, JD MALL has opened a total of 24 stores. Differentiated from traditional offline stores, JD MALL leverages JD's supply chain strengths and offers customers an immersive, digitalized and one-stop shopping experience through in-depth integration of online and offline data, services and use cases. JD Logistics: While JD Logistics ('JDL') continues to strengthen its leading position in China's domestic integrated supply chain market, its 'Global Smart Supply Chain Network' plan is also ramping up with overseas warehousing capabilities at its core. JDL has been extending its years of warehousing operation experience and integrated supply chain capabilities to overseas markets, delivering high-quality, efficient and comprehensive solutions to a growing number of Chinese brands, overseas local customers, and cross-border e-commerce platforms. In the first half of 2025, JDL opened new overseas warehouses in multiple countries globally, including the United States, the United Kingdom, France, Poland, South Korea, Vietnam, and Saudi Arabia. As of June 30, 2025, JDL has operated over 130 bonded warehouses, direct mail warehouses, and overseas warehouses in total, with a total managed area exceeding 1.3 million square meters. Its overseas warehouses cover 23 countries and regions worldwide. Meanwhile, built upon its overseas warehouses, JDL has been further developing its global supply chain network that integrates overseas warehouse networks, international transit hubs, local transportation and distribution networks in overseas countries, and cross-border line-haul transportation networks. In particular, in June 2025, JDL launched its self-operated express delivery brand 'JoyExpress' in Saudi Arabia, officially commencing local delivery operations. With this, JDL has established a comprehensive logistics network in Saudi Arabia, covering everything from warehousing and sorting to last-mile delivery, marking a further enhancement of JDL's localized operating capabilities for overseas business. In the first half of 2025, the 'Zhilang' system, an efficient intelligent warehousing solution independently developed by JDL, has entered into the stage of large-scale nationwide application. It has been deployed in various types of warehouses across key cities such as Beijing, Guangzhou, Chengdu, and Fuzhou, marking JDL's acceleration of intelligent advancement. The 'Zhilang' system integrates core components such as handling robots, ladder-climbing robots, and stereoscopic racks, along with auxiliary facilities including automated storage and sorting workstations, as well as automated empty container return lines, which enables it to fully utilize the 12-meter clear height of warehouses to achieve high-density storage. The implementation of 'Zhilang' has also significantly increased in-warehouse operational efficiency, allowing order sorting to be completed in as fast as seconds, even in warehouses with tens of thousands of SKUs. JD Health: In the second quarter of 2025, JD Health further strengthened its position as 'the First Online Marketplace for New and Specialty Medicine Launches' in China. Innovent Biologics' self-developed innovative weight-loss drug Xin Er Mei (信爾美®) and Qingfeng Pharmaceutical's new domestic anti-influenza drug Yi Su Da (伊速達®), among others, became available for sale on JD Health's online platform. New Businesses: In the second quarter of 2025, JD Food Delivery continued its healthy growth trajectory. During the JD 618 Grand Promotion, JD Food Delivery's daily order volume exceeded 25 million, with over 1.5 million high-quality merchants on board. By the end of the second quarter, the number of full-time riders had exceeded 150,000. JD Food Delivery is deeply rooted in the JD ecosystem and is not a stand-alone business. It will continue to focus on the synergistic value with JD's existing businesses, including in the aspects of users, fulfillment and supply, propelling JD's improvement in efficiency and driving long-term healthy growth. In addition, in July 2025, launched 7Fresh Kitchen with a distinctive model to develop signature dishes with partners. 7Fresh Kitchen is committed to innovate and reform the supply chain model in the food delivery industry, driving the industry's high-quality growth through supply chain innovation. Environment, Social and Governance As a testament to unwavering commitment to creating more jobs and making contribution to the society, the total personnel under the JD Ecosystem4 was approximately 900,000 as of June 30, 2025, including the Company's employees, part-time staff and interns, as well as the personnel of the Company's affiliates in the JD Ecosystem. The total expenditure for such human resources, together with the expenditure for external personnel who work for the JD Ecosystem, amounted to RMB136.0 billion for the twelve months ended June 30, 2025. Second Quarter 2025 Financial Results Net revenues increased by 22.4% to RMB356.7 billion (US$49.8 billion) for the second quarter of 2025 from RMB291.4 billion for the second quarter of 2024. Net product revenues increased by 20.7%, while net service revenues increased by 29.1% for the second quarter of 2025, compared to the second quarter of 2024. . Cost of revenues increased by 22.2% to RMB300.0 billion (US$41.9 billion) for the second quarter of 2025 from RMB245.5 billion for the second quarter of 2024. . Fulfillment expenses, which primarily include procurement, warehousing, delivery, customer service and payment processing expenses, increased by 28.6% to RMB22.1 billion (US$3.1 billion) for the second quarter of 2025 from RMB17.2 billion for the second quarter of 2024. Fulfillment expenses as a percentage of net revenues was 6.2% for the second quarter of 2025, compared to 5.9% for the second quarter of 2024, as the Company continues to upgrade fulfillment capabilities and invest in human capital to enhance user experience. . Marketing expenses increased by 127.6% to RMB27.0 billion (US$3.8 billion) for the second quarter of 2025 from RMB11.9 billion for the second quarter of 2024. Marketing expenses as a percentage of net revenues was 7.6% for the second quarter of 2025, compared to 4.1% for the second quarter of 2024, primarily due to the increased spending in promotional efforts for new business initiatives. . Research and development expenses increased by 25.7% to RMB5.3 billion (US$0.7 billion) for the second quarter of 2025 from RMB4.2 billion for the second quarter of 2024. Research and development expenses as a percentage of net revenues was 1.5% for the second quarter of 2025, compared to 1.4% for the second quarter of 2024. . General and administrative expenses increased by 53.2% to RMB3.3 billion (US$0.5 billion) for the second quarter of 2025 from RMB2.1 billion for the second quarter of 2024. General and administrative expenses as a percentage of net revenues was 0.9% for the second quarter of 2025, compared to 0.7% for the second quarter of 2024, primarily due to the increase in share-based compensation expenses. Loss from operations for the second quarter of 2025 was RMB0.9 billion (US$0.1 billion), compared to an income of RMB10.5 billion for the second quarter of 2024. Operating margin was negative 0.2% for the second quarter of 2025, compared to 3.6% for the second quarter of 2024. Non-GAAP income from operations was RMB0.9 billion (US$0.1 billion) for the second quarter of 2025, compared to RMB11.6 billion for the second quarter of 2024. Non-GAAP operating margin was 0.3% for the second quarter of 2025, compared to 4.0% for the second quarter of 2024. The declines were primarily attributable to increased strategic investment in new business initiatives. Income from operations of JD Retail was RMB13.9 billion (US$1.9 billion) for the second quarter of 2025, compared to RMB10.1 billion for the second quarter of 2024. Operating margin of JD Retail for the second quarter of 2025 was 4.5%, compared to 3.9% for the second quarter of 2024. Non-GAAP EBITDA was RMB3.0 billion (US$0.4 billion) for the second quarter of 2025, compared to RMB13.5 billion for the second quarter of 2024. Non-GAAP EBITDA margin was 0.8% for the second quarter of 2025, compared to 4.6% for the second quarter of 2024. ''Net income attributable to the Company's ordinary shareholders was RMB6.2 billion (US$0.9 billion) for the second quarter of 2025, compared to RMB12.6 billion for the second quarter of 2024. Net margin attributable to the Company's ordinary shareholders was 1.7% for the second quarter of 2025, compared to 4.3% for the second quarter of 2024. Non-GAAP net income attributable to the Company's ordinary shareholders was RMB7.4 billion (US$1.0 billion) for the second quarter of 2025, compared to RMB14.5 billion for the second quarter of 2024. Non-GAAP net margin attributable to the Company's ordinary shareholders was 2.1% for the second quarter of 2025, compared to 5.0% for the second quarter of 2024. Diluted net income per ADS was RMB4.15 (US$0.58) for the second quarter of 2025, compared to RMB8.19 for the second quarter of 2024. Non-GAAP diluted net income per ADS was RMB4.97 (US$0.69) for the second quarter of 2025, compared to RMB9.36 for the second quarter of of June 30, 2025, the Company's cash and cash equivalents, restricted cash and short-term investments totaled RMB223.4 billion (US$31.2 billion), compared to RMB241.4 billion as of December 31, 2024. For the second quarter of 2025, free cash flow of the Company was as follows: For the three months ended June 30,2024 June 30,2025 June 30,2025 RMB RMB US$ (In millions) Net cash provided by operating activities 50,738 24,409 3,407 Add: Impact from consumer financing receivables included in the operating cash flow 2,138 641 90 Less: Capital expenditures, net of related sales proceeds (3,321 ) (3,032 ) (423 ) Capital expenditures for development properties (1,590 ) (1,076 ) (150 ) Other capital expenditures* (1,731 ) (1,956 ) (273 ) Free cash flow 49,555 22,018 3,074 * Including capital expenditures related to the Company's headquarters in Beijing and all other CAPEX. Net cash provided by investing activities was RMB8.2 billion (US$1.1 billion) for the second quarter of 2025, consisting primarily of net cash received from maturity of time deposits and wealth management products, partially offset by cash paid for capital expenditures. Net cash used in financing activities was RMB12.4 billion (US$1.7 billion) for the second quarter of 2025, consisting primarily of cash paid for dividend, repurchase of ordinary shares, and acquisition of additional equity interests in non-wholly owned subsidiaries, partially offset by net cash provided by proceeds from borrowings. For the twelve months ended June 30, 2025, free cash flow of the Company was as follows: For the twelve months ended June 30,2024 June 30,2025 June 30,2025 RMB RMB US$ (In millions) Net cash provided by operating activities 74,040 24,819 3,465 Less: Impact from consumer financing receivables included in the operating cash flow (639 ) (1,366 ) (191 ) Less: Capital expenditures, net of related sales proceeds (17,759 ) (13,377 ) (1,867 ) Capital expenditures for development properties (10,559 ) (6,327 ) (883 ) Other capital expenditures (7,200 ) (7,050 ) (984 ) Free cash flow 55,642 10,076 1,407 The Company reports three reportable segments, JD Retail, JD Logistics, and New businesses. JD Retail, including JD Health and JD Industrials, among other operating segments, mainly engages in online retail, online marketplace and marketing services in China. JD Logistics includes both internal and external logistics businesses. New Businesses mainly include JD Food Delivery, JD Property, Jingxi and overseas businesses. For the three months ended For the six months ended June 30, 2024 June 30, 2025 June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ RMB RMB US$ (In millions, except percentage data) Net revenues: JD Retail 257,072 310,075 43,285 483,907 573,920 80,116 JD Logistics 44,207 51,564 7,198 86,344 98,531 13,754 New Businesses 4,636 13,852 1,934 9,506 19,605 2,737 Inter-segment eliminations* (14,518 ) (18,831 ) (2,629 ) (28,311 ) (34,314 ) (4,790 ) Total consolidated net revenues 291,397 356,660 49,788 551,446 657,742 91,817 Less: cost of revenues: JD Retail (215,520 ) (256,527 ) (35,810 ) (405,582 ) (475,922 ) (66,436 ) JD Logistics (39,123 ) (46,234 ) (6,454 ) (78,175 ) (90,019 ) (12,566 ) New Businesses (3,643 ) (14,405 ) (2,011 ) (7,674 ) (18,991 ) (2,651 ) Inter-segment eliminations* 12,837 17,171 2,397 25,729 31,710 4,426 Less: operating expenses: JD Retail (31,444 ) (39,609 ) (5,529 ) (58,892 ) (71,213 ) (9,941 ) JD Logistics (2,901 ) (3,372 ) (471 ) (5,762 ) (6,409 ) (895 ) New Businesses (1,688 ) (14,448 ) (2,017 ) (3,197 ) (16,942 ) (2,365 ) Inter-segment eliminations* 1,681 1,660 232 2,582 2,604 364 Income/(Loss) from operations: JD Retail 10,108 13,939 1,946 19,433 26,785 3,739 JD Logistics 2,183 1,958 273 2,407 2,103 293 New Businesses (695 ) (14,777 ) (2,063 ) (1,365 ) (16,104 ) (2,248 ) Including: gain on sale of development properties — 224 31 — 224 31 Total segment income from operations 11,596 1,120 156 20,475 12,784 1,784 Unallocated items** (1,095 ) (1,979 ) (276 ) (2,274 ) (3,110 ) (434 ) Total consolidated income/(loss) from operations 10,501 (859 ) (120 ) 18,201 9,674 1,350 Share of results of equity investees 1,142 2,072 289 412 3,402 475 Interest expense (688 ) (643 ) (90 ) (1,289 ) (1,243 ) (173 ) Others, net 4,661 6,129 856 7,357 8,208 1,146 Total consolidated income before tax 15,616 6,699 935 24,681 20,041 2,798 For the three months ended For the six months ended June 30,2024 June 30,2025 June 30,2025 June 30,2024 June 30,2025 June 30,2025 RMB RMB US$ RMB RMB US$ (In millions, except percentage data) YoY% change of net revenues: JD Retail 1.5 % 20.6 % 3.9 % 18.6 % JD Logistics 7.7 % 16.6 % 11.0 % 14.1 % New Businesses (35.0 )% 198.8 % (27.7 )% 106.2 % Operating margin: JD Retail 3.9 % 4.5 % 4.0 % 4.7 % JD Logistics 4.9 % 3.8 % 2.8 % 2.1 % New Businesses (15.0 )% (106.7 )% (14.4 )% (82.1 )% * The inter-segment eliminations mainly consist of revenues from supply chain solutions and logistics services provided by JD Logistics to JD Retail and New Businesses, and property leasing services provided by JD Property to JD Logistics. ** Unallocated items include share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, and effects of business cooperation arrangements. The tables below set forth the revenue information: For the three months ended June 30,2024 June 30,2025 June 30,2025 YoY%Change RMB RMB US$ (In millions, except percentage data) Electronics and home appliances revenues 145,061 178,982 24,985 23.4 % General merchandise revenues 88,847 103,432 14,439 16.4 % Net product revenues 233,908 282,414 39,424 20.7 % Marketplace and marketing revenues 23,425 28,507 3,979 21.7 % Logistics and other service revenues 34,064 45,739 6,385 34.3 % Net service revenues 57,489 74,246 10,364 29.1 % Total net revenues 291,397 356,660 49,788 22.4 % For the six months ended June 30,2024 June 30,2025 June 30,2025 YoY%Change RMB RMB US$ (In millions, except percentage data) Electronics and home appliances revenues 268,273 323,277 45,128 20.5 % General merchandise revenues 174,143 201,446 28,121 15.7 % Net product revenues 442,416 524,723 73,249 18.6 % Marketplace and marketing revenues 42,714 50,827 7,095 19.0 % Logistics and other service revenues 66,316 82,192 11,473 23.9 % Net service revenues 109,030 133,019 18,568 22.0 % Total net revenues 551,446 657,742 91,817 19.3 % Conference Call management will hold a conference call at 8:00 am, Eastern Time on August 14, 2025, (8:00 pm, Beijing/Hong Kong Time on August 14, 2025) to discuss its financial results for the three months and six months ended June 30, 2025. Please register in advance of the conference using the link provided below and dial in 15 minutes prior to the call, using participant dial-in numbers, the Passcode and unique access PIN which would be provided upon registering. You will be automatically linked to the live call after completion of this process, unless required to provide the conference ID below due to regional restrictions. PRE-REGISTER LINK: CONFERENCE ID: 10048710 A telephone replay will be available for one week until August 21, 2025. The dial-in details are as follows: US: +1-855-883-1031 International: +61-7-3107-6325 Mainland China: 400-120-9216 Hong Kong, China: 800-930-639 Passcode: 10048710 Additionally, a live and archived webcast of the conference call will also be available on the investor relations website at About is a leading supply chain-based technology and service provider. The Company's cutting-edge retail infrastructure seeks to enable consumers to buy whatever they want, whenever and wherever they want it. The Company has opened its technology and infrastructure to partners, brands and other sectors, as part of its Retail as a Service offering to help drive productivity and innovation across a range of industries. Non-GAAP Measures In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP income/(loss) from operations, non-GAAP operating margin, non-GAAP net income/(loss) attributable to the Company's ordinary shareholders, non-GAAP net margin attributable to the Company's ordinary shareholders, free cash flow, non-GAAP EBITDA, non-GAAP EBITDA margin, non-GAAP net income/(loss) per share and non-GAAP net income/(loss) per ADS, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ('U.S. GAAP'). The Company defines non-GAAP income/(loss) from operations as income/(loss) from operations excluding share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements, gain on sale of development properties and impairment of goodwill and long-lived assets. The Company defines non-GAAP net income/(loss) attributable to the Company's ordinary shareholders as net income/(loss) attributable to the Company's ordinary shareholders excluding share-based compensation, amortization of intangible assets resulting from assets and business acquisitions, effects of business cooperation arrangements and non-compete agreements, gain/(loss) on disposals/deemed disposals of investments and others, reconciling items on the share of equity method investments, gain/(loss) from fair value change of long-term investments, impairment of goodwill, long-lived assets and investments, gain on sale of development properties and tax effects on non-GAAP adjustments. The Company defines free cash flow as operating cash flow adjusting the impact from consumer financing receivables included in the operating cash flow and capital expenditures, net of related sales proceeds. Capital expenditures include purchase of property, equipment and software, cash paid for construction in progress, purchase of intangible assets, land use rights and asset acquisitions. The Company defines non-GAAP EBITDA as non-GAAP income/(loss) from operations plus depreciation and amortization excluding amortization of intangible assets resulting from assets and business acquisitions. Non-GAAP basic net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to the Company's ordinary shareholders by the weighted average number of ordinary shares outstanding during the periods. Non-GAAP diluted net income/(loss) per share is calculated by dividing non-GAAP net income/(loss) attributable to the Company's ordinary shareholders by the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the periods, including the dilutive effects of share-based awards as determined under the treasury stock method and convertible senior notes. Non-GAAP net income/(loss) per ADS is equal to non-GAAP net income/(loss) per share multiplied by two. The Company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. Non-GAAP income/(loss) from operations, non-GAAP net income/(loss) attributable to the Company's ordinary shareholders and non-GAAP EBITDA reflect the Company's ongoing business operations in a manner that allows more meaningful period-to-period comparisons. Free cash flow enables management to assess liquidity and cash flow while taking into account the impact from consumer financing receivables included in the operating cash flow and the demands that the expansion of fulfillment infrastructure and technology platform has placed on financial resources. The Company believes that the use of the non-GAAP financial measures facilitates investors to understand and evaluate the Company's current operating performance and future prospects in the same manner as management does, if they so choose. The Company also believes that the non-GAAP financial measures provide useful information to both management and investors by excluding certain expenses, gain/loss and other items that are not expected to result in future cash payments or that are non-recurring in nature or may not be indicative of the Company's core operating results and business outlook. The non-GAAP financial measures have limitations as analytical tools. The Company's non-GAAP financial measures do not reflect all items of income and expense that affect the Company's operations or not represent the residual cash flow available for discretionary expenditures. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for these limitations by reconciling the non-GAAP financial measures to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the Company's financial information in its entirety and not rely on a single financial measure. CONTACTS: Investor RelationsSean Zhang+86 (10) 8912-6804IR@ Media Relations+86 (10) 8911-6155Press@ Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as 'will,' 'expects,' 'anticipates,' 'future,' 'intends,' 'plans,' 'believes,' 'estimates,' 'confident' and similar statements. Among other things, the business outlook and quotations from management in this announcement, as well as strategic and operational plans, contain forward-looking statements. may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the 'SEC'), in announcements made on the website of the Hong Kong Stock Exchange, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: growth strategies; its future business development, results of operations and financial condition; its ability to attract and retain new customers and to increase revenues generated from repeat customers; its expectations regarding demand for and market acceptance of its products and services; trends and competition in China's e-commerce market; changes in its revenues and certain cost or expense items; the expected growth of the Chinese e-commerce market; laws, regulations and governmental policies relating to the industries in which or its business partners operate; potential changes in laws, regulations and governmental policies or changes in the interpretation and implementation of laws, regulations and governmental policies that could adversely affect the industries in which or its business partners operate, including, among others, initiatives to enhance supervision of companies listed on an overseas exchange and tighten scrutiny over data privacy and data security; risks associated with acquisitions, investments and alliances, including fluctuation in the market value of investment portfolio; natural disasters and geopolitical events; change in tax rates and financial risks; intensity of competition; and general market and economic conditions in China and globally. Further information regarding these and other risks is included in filings with the SEC and the announcements on the website of the Hong Kong Stock Exchange. All information provided herein is as of the date of this announcement, and undertakes no obligation to update any forward-looking statement, except as required under applicable law. Inc. Unaudited Interim Condensed Consolidated Balance Sheets (In millions, except otherwise noted) As of December 31,2024 June 30,2025 June 30,2025 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 108,350 116,547 16,269 Restricted cash 7,366 9,610 1,342 Short-term investments 125,645 97,291 13,581 Accounts receivable, net (including consumer financing receivables of RMB2.0 billion and RMB1.9 billion as of December 31, 2024 and June 30, 2025, respectively)(1) 25,596 41,983 5,861 Advance to suppliers 7,619 6,043 844 Inventories, net 89,326 103,537 14,453 Prepayments and other current assets 15,951 15,669 2,187 Amount due from related parties 4,805 1,990 278 Assets held for sale 2,040 1,363 190 Total current assets 386,698 394,033 55,005 Non-current assets Property, equipment and software, net 82,737 87,160 12,167 Construction in progress 6,164 6,749 942 Intangible assets, net 7,793 7,256 1,013 Land use rights, net 36,833 37,173 5,189 Operating lease right-of-use assets 24,532 27,454 3,832 Goodwill 25,709 25,709 3,589 Investment in equity investees 56,850 48,225 6,732 Marketable securities and other investments 59,370 61,397 8,571 Deferred tax assets 2,459 2,881 402 Other non-current assets 9,089 8,902 1,243 Total non-current assets 311,536 312,906 43,680 Total assets 698,234 706,939 98, Inc. Unaudited Interim Condensed Consolidated Balance Sheets (In millions, except otherwise noted) As of December 31,2024 June 30,2025 June 30,2025 RMB RMB US$ LIABILITIES Current liabilities Short-term debts 7,581 11,661 1,628 Accounts payable 192,860 211,711 29,554 Advance from customers 32,437 33,517 4,679 Deferred revenues 2,097 2,387 333 Taxes payable 9,487 5,981 835 Amount due to related parties 1,367 939 131 Unsecured senior notes — 3,571 498 Accrued expenses and other current liabilities 45,985 44,555 6,220 Operating lease liabilities 7,606 8,285 1,157 Liabilities held for sale 101 25 3 Total current liabilities 299,521 322,632 45,038 Non-current liabilities Deferred revenues 502 429 60 Unsecured senior notes 24,770 21,141 2,951 Deferred tax liabilities 9,498 8,388 1,171 Long-term borrowings 31,705 35,454 4,949 Operating lease liabilities 18,106 20,680 2,887 Other non-current liabilities 835 926 129 Total non-current liabilities 85,416 87,018 12,147 Total liabilities 384,937 409,650 57,185 MEZZANINE EQUITY 484 — — SHAREHOLDERS' EQUITY Total Inc. shareholders' equity (US$0.00002 par value, 100,000 million shares authorized, 2,981 million shares issued and 2,836 million shares outstanding as of June 30, 2025) 239,347 227,160 31,710 Non-controlling interests 73,466 70,129 9,790 Total shareholders' equity 312,813 297,289 41,500 Total liabilities, mezzanine equity and shareholders' equity 698,234 706,939 98,685 (1) JD Technology performs credit risk assessment services for consumer financing receivables business and absorbs the credit risk of the underlying consumer financing receivables. Facilitated by JD Technology, the Company periodically securitizes consumer financing receivables through the transfer of those assets to securitization plans and derecognizes the related consumer financing receivables through sales type Inc. Unaudited Interim Condensed Consolidated Statements of Operations (In millions, except per share data) For the three months ended For the six months ended June 30, 2024 June 30, 2025 June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ RMB RMB US$ Net revenues Net product revenues 233,908 282,414 39,424 442,416 524,723 73,249 Net service revenues 57,489 74,246 10,364 109,030 133,019 18,568 Total net revenues 291,397 356,660 49,788 551,446 657,742 91,817 Cost of revenues (245,459 ) (300,020 ) (41,881 ) (465,738 ) (553,254 ) (77,231 ) Fulfillment (17,221 ) (22,145 ) (3,091 ) (34,027 ) (41,882 ) (5,846 ) Marketing (11,867 ) (27,013 ) (3,771 ) (21,121 ) (37,556 ) (5,243 ) Research and development (4,217 ) (5,299 ) (740 ) (8,251 ) (9,920 ) (1,385 ) General and administrative (2,132 ) (3,266 ) (456 ) (4,108 ) (5,680 ) (793 ) Gain on sale of development properties — 224 31 — 224 31 Income/(Loss) from operations(2)(3) 10,501 (859 ) (120 ) 18,201 9,674 1,350 Other income/(expenses) Share of results of equity investees 1,142 2,072 289 412 3,402 475 Interest expense (688 ) (643 ) (90 ) (1,289 ) (1,243 ) (173 ) Others, net(4) 4,661 6,129 856 7,357 8,208 1,146 Income before tax 15,616 6,699 935 24,681 20,041 2,798 Income tax (expenses)/benefits (2,022 ) 10 2 (3,722 ) (2,053 ) (287 ) Net income 13,594 6,709 937 20,959 17,988 2,511 Net income attributable to non-controlling interests shareholders 950 531 75 1,185 920 128 Net income attributable to the Company's ordinary shareholders 12,644 6,178 862 19,774 17,068 2,383 Net income per share: Basic 4.20 2.17 0.30 6.44 5.95 0.83 Diluted 4.09 2.07 0.29 6.34 5.68 0.79 Net income per ADS: Basic 8.39 4.35 0.61 12.88 11.89 1.66 Diluted 8.19 4.15 0.58 12.68 11.37 1.59 Inc. Unaudited Interim Condensed Consolidated Statements of Operations (In millions, except per share data) For the three months ended For the six months ended June 30, 2024 June 30, 2025 June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ RMB RMB US$ (2) Includes share-based compensation as follows: Cost of revenues (10 ) (25 ) (3 ) (36 ) (32 ) (4 ) Fulfillment (108 ) (75 ) (11 ) (218 ) (146 ) (20 ) Marketing (80 ) (49 ) (7 ) (163 ) (111 ) (16 ) Research and development (164 ) (296 ) (41 ) (339 ) (513 ) (72 ) General and administrative (304 ) (1,212 ) (169 ) (669 ) (1,622 ) (226 ) Total (666 ) (1,657 ) (231 ) (1,425 ) (2,424 ) (338 ) (3) Includes amortization of business cooperation arrangements and intangible assets resulting from assets and business acquisitions as follows: Fulfillment (103 ) (50 ) (7 ) (206 ) (99 ) (14 ) Marketing (226 ) (236 ) (33 ) (445 ) (515 ) (72 ) Research and development (68 ) (36 ) (5 ) (134 ) (72 ) (10 ) General and administrative (32 ) — — (64 ) — — Total (429 ) (322 ) (45 ) (849 ) (686 ) (96 ) (4) 'Others, net' consists of interest income; gains/(losses) related to long-term investments without significant influence, including fair value changes, acquisitions or disposals gains/(losses), and impairments; government incentives; foreign exchange gains/(losses); and other non-operating income/(losses). Inc. Unaudited Non-GAAP Net Income Per Share and Per ADS (In millions, except per share data) For the three months ended For the six months ended June 30, 2024 June 30, 2025 June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ RMB RMB US$ Non-GAAP net income attributable to the Company's ordinary shareholders 14,460 7,394 1,032 23,359 20,152 2,813 Non-GAAP net income per share: Basic 4.80 2.60 0.36 7.61 7.02 0.98 Diluted 4.68 2.48 0.35 7.49 6.71 0.94 Non-GAAP net income per ADS: Basic 9.60 5.20 0.73 15.22 14.04 1.96 Diluted 9.36 4.97 0.69 14.98 13.42 1.87 Weighted average number of shares: Basic 3,013 2,841 3,070 2,870 Diluted 3,085 2,970 3,114 3,003 Inc. Unaudited Interim Condensed Consolidated Statements of Cash Flows and Free Cash Flow (In millions) For the three months ended For the six months ended June 30,2024 June 30,2025 June 30, 2025 June 30,2024 June 30,2025 June 30,2025 RMB RMB US$ RMB RMB US$ Net cash provided by operating activities 50,738 24,409 3,407 39,423 6,147 858 Net cash (used in)/ provided by investing activities (38,527 ) 8,218 1,147 (10,113 ) 24,454 3,414 Net cash used in financing activities (8,969 ) (12,439 ) (1,736 ) (16,414 ) (19,727 ) (2,754 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash (114 ) (88 ) (12 ) (247 ) (433 ) (60 ) Net increase in cash, cash equivalents and restricted cash 3,128 20,100 2,806 ... 12,649 10,441 1,458 Cash, cash equivalents and restricted cash at beginning of period, including cash and cash equivalents classified within assets held for sale 88,922 106,057 14,805 79,451 115,716 16,153 Less: Cash, cash equivalents and restricted cash classified within assets held for sale at beginning of period (3 ) —* —* (53 ) —* —* Cash, cash equivalents and restricted cash at beginning of period 88,919 106,057 14,805 79,398 115,716 16,153 Cash, cash equivalents and restricted cash at end of period, including cash and cash equivalents classified within assets held for sale 92,047 126,157 17,611 92,047 126,157 17,611 Less: Cash, cash equivalents and restricted cash classified within assets held for sale at end of period (2 ) —* —* (2 ) —* —* Cash, cash equivalents and restricted cash at end of period 92,045 126,157 17,611 92,045 126,157 17,611 Net cash provided by operating activities 50,738 24,409 3,407 39,423 6,147 858 Add/(Less): Impact from consumer financing receivables included in the operating cash flow 2,138 641 90 857 (377 ) (53 ) Less: Capital expenditures, net of related sales proceeds (3,321 ) (3,032 ) (423 ) (6,201 ) (5,355 ) (747 ) Capital expenditures for development properties (1,590 ) (1,076 ) (150 ) (2,950 ) (1,991 ) (278 ) Other capital expenditures (1,731 ) (1,956 ) (273 ) (3,251 ) (3,364 ) (469 ) Free cash flow 49,555 22,018 3,074 34,079 415 58 *Absolute value is less than RMB1 million or US$1 Inc. Supplemental Financial Information and Business Metrics(In RMB billions, except turnover days data) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Cash flow and turnover days Operating cash flow – trailing twelve months ('TTM') 74.0 52.8 58.1 51.1 24.8 Free cash flow – TTM 55.6 33.6 43.7 37.6 10.1 Inventory turnover days(5) – TTM 29.8 30.4 31.5 32.8 34.1 Accounts payable turnover days(6) – TTM 57.0 57.5 58.6 57.6 59.0 Accounts receivable turnover days(7) – TTM 5.7 5.8 5.9 6.4 7.4(5) TTM inventory turnover days are the quotient of average inventory over the immediately preceding five quarters, up to and including the last quarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by 360 days.(6) TTM accounts payable turnover days are the quotient of average accounts payable for retail business over the immediately preceding five quarters, up to and including the last quarter of the period, to cost of revenues of retail business for the last twelve months, and then multiplied by 360 days.(7) TTM accounts receivable turnover days are the quotient of average accounts receivable over the immediately preceding five quarters, up to and including the last quarter of the period, to total net revenues for the last twelve months and then multiplied by 360 days. Presented are the accounts receivable turnover days excluding the impact from consumer financing Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results (In millions, except percentage data) For the three months ended For the six months ended June 30, 2024 June 30, 2025 June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ RMB RMB US$ Income/(Loss) from operations 10,501 (859 ) (120 ) 18,201 9,674 1,350 Add: Share-based compensation 666 1,657 231 1,425 2,424 338 Add: Amortization of intangible assets resulting from assets and business acquisitions 316 253 35 625 505 71 Add: Effects of business cooperation arrangements 113 69 10 224 181 25 Reversal of: Gain on sale of development properties — (224 ) (31 ) — (224 ) (31 ) Non-GAAP income from operations 11,596 896 125 20,475 12,560 1,753 Add: Depreciation and other amortization 1,934 2,103 294 3,842 4,141 578 Non-GAAP EBITDA 13,530 2,999 419 24,317 16,701 2,331 Total net revenues 291,397 356,660 49,788 551,446 657,742 91,817 Non-GAAP operating margin 4.0 % 0.3 % 3.7 % 1.9 % Non-GAAP EBITDA margin 4.6 % 0.8 % 4.4 % 2.5 % Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results (In millions, except percentage data) For the three months ended For the six months ended June 30, 2024 June 30, 2025 June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2025 RMB RMB US$ RMB RMB US$ Net income attributable to the Company's ordinary shareholders 12,644 6,178 862 19,774 17,068 2,383 Add: Share-based compensation 549 1,578 220 1,141 2,228 311 Add: Amortization of intangible assets resulting from assets and business acquisitions 151 169 24 294 355 50 Add/(Reversal of): Reconciling items on the share of equity method investments(8) 211 (185 ) (26 ) 581 779 109 Add: Impairment of goodwill, long-lived assets and investments 1,102 178 25 1,660 615 86 (Reversal of)/Add: (Gain)/Loss from fair value change of long-term investments (104 ) (531 ) (74 ) (112 ) 343 48 Reversal of: Gain on sale of development properties — (168 ) (24 ) — (168 ) (24 ) Reversal of: Gain on disposals/deemed disposals of investments and others (208 ) (30 ) (4 ) (230 ) (1,202 ) (168 ) Add: Effects of business cooperation arrangements 113 69 10 224 181 25 Add/(Reversal of): Tax effects on non-GAAP adjustments 2 136 19 27 (47 ) (7 ) Non-GAAP net income attributable to the Company's ordinary shareholders 14,460 7,394 1,032 23,359 20,152 2,813 Total net revenues 291,397 356,660 49,788 551,446 657,742 91,817 Non-GAAP net margin attributable to the Company's ordinary shareholders 5.0 % 2.1 % 4.2 % 3.1 % (8) To exclude the GAAP to non-GAAP reconciling items on the share of equity method investments and share of amortization of intangibles not on their books. Reconciliation between U.S. GAAP and IFRS Accounting Standards Deloitte Touche Tohmatsu was engaged by the Company to conduct limited assurance engagement in accordance with Hong Kong Standard on Assurance Engagements 3000 (Revised) 'Assurance Engagements Other Than Audits or Reviews of Historical Financial Information' ('HKSAE 3000 (Revised)') issued by the Hong Kong Institute of Certified Public Accountants on the reconciliation of the condensed consolidated statement of operations for the six months ended June 30, 2025 and the condensed consolidated balance sheet as of June 30, 2025 of the Company and its subsidiaries (collectively referred to as the 'Group') between the accounting policies adopted by the Group of the relevant period in accordance with the U.S. GAAP and the IFRS Accounting Standards (the 'IFRSs') issued by the International Accounting Standards Board (together, the 'Reconciliation'). The limited assurance engagement undertaken in accordance with HKSAE 3000 (Revised) involves performing procedures to obtain sufficient appropriate evidence about whether: the related adjustments and reclassifications give appropriate effect to those criteria; and the Reconciliation reflects the proper application of the adjustments and reclassifications to the differences between the Group's accounting policies in accordance with the U.S. GAAP and the IFRSs. The procedures performed by Deloitte Touche Tohmatsu were based on their professional judgment, having regard to their understanding of the management's process on preparing the Reconciliation, nature, business performance and financial position of the Group. Given the circumstances of the engagement, the procedures performed included: (i) Comparing the 'Amounts as recorded under U.S. GAAP' for the six months ended June 30, 2025 in the Reconciliation as set out in the Appendix with the Interim 2025 Results prepared in accordance with the U.S. GAAP;(ii) Evaluating the assessment made by the board of directors in identifying the differences between the accounting policies in accordance with the U.S. GAAP and the IFRSs, and the evidence supporting the adjustments and reclassifications made in the Reconciliation in arriving at the 'Amounts as recorded under IFRSs' in the Reconciliation as set out in the Appendix; and(iii) Checking the arithmetic accuracy of the computation of the Reconciliation as set out in the procedures performed by Deloitte Touche Tohmatsu in this limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Accordingly, Deloitte Touche Tohmatsu does not express a reasonable assurance opinion. Based on the procedures performed and evidence obtained, Deloitte Touche Tohmatsu has concluded that nothing has come to their attention that causes them to believe that: (i) The 'Amounts as recorded under U.S. GAAP' for the six months ended June 30, 2025 in the Reconciliation as set out in the Appendix is not in agreement with the Interim 2025 Results prepared in accordance with the U.S. GAAP;(ii) The adjustments and reclassifications made in the Reconciliation in arriving at the 'Amounts as recorded under IFRSs' in the Reconciliation as set out in the Appendix, do not reflect, in all material respects, the different accounting treatments according to the Group's accounting policies in accordance with the U.S. GAAP and the IFRSs of the relevant period; and(iii) The computation of the Reconciliation as set out in the Appendix is not arithmetically accurate. Appendix The condensed consolidated financial statements are prepared in accordance with U.S. GAAP, which differ in certain respects from IFRSs. The effects of material differences between the condensed consolidated financial statements of the Group prepared under U.S. GAAP and IFRSs are as follows: For the six months ended June 30, 2024IFRSs adjustments Amounts asrecorded under Financialinstruments withspecial features Investmentsmeasured at fairvalue Leaseaccounting Impairment oflong-lived assets Convertiblesenior notes Share-based compensation Amounts asrecorded underIFRSs (RMB in millions) Note i Note ii Note iii Note iv Note v Note vi Cost of revenues (465,738 ) — — — 17 — — (465,721 ) Fulfillment (34,027 ) — — 495 7 — — (33,525 ) Marketing (21,121 ) — — 1 — — — (21,120 ) Research and development (8,251 ) — — 2 — — — (8,249 ) General and administrative (4,108 ) — — 2 — — — (4,106 ) Income from operations 18,201 — — 500 24 — — 18,725 Share of results of equity investees 412 — 78 — — — — 490 Interest expense (1,289 ) (5 ) — (290 ) — (124 ) — (1,708 ) Others, net 7,357 — (89 ) (84 ) — 1,141 — 8,325 Fair value changes of preferred shares — (48 ) — — — — — (48 ) Income before tax 24,681 (53 ) (11 ) 126 24 1,017 — 25,784 Income tax (expenses)/benefits (3,722 ) — 58 — — — (26 ) (3,690 ) Net income 20,959 (53 ) 47 126 24 1,017 (26 ) 22,094 Net income attributable to non-controlling interests shareholders 1,185 (11 ) 38 (47 ) 6 — (26 ) 1,145 Net income attributable to the Company's ordinary shareholders 19,774 (42 ) 9 173 18 1,017 — 20,949 For the six months ended June 30, 2025IFRSs adjustments Amounts asrecorded underU.S. GAAP Financialinstrumentswith specialfeatures Investmentsmeasured at fairvalue Leaseaccounting Impairment oflong-lived assets Convertiblesenior notes Share-based compensation Investment inJD Technology Amounts asrecorded underIFRSs (RMB in millions) Note i Note ii Note iii Note iv Note v Note vi Note vii Fulfillment (41,882 ) — — 818 57 — — — (41,007 ) Marketing (37,556 ) — — 2 — — — — (37,554 ) Research and development (9,920 ) — — 4 — — — — (9,916 ) General and administrative (5,680 ) — — 5 — — — — (5,675 ) Gain on sale of development properties 224 — — (123 ) — — — — 101 Income from operations 9,674 — — 706 57 — — — 10,437 Share of results of equity investees 3,402 — 9 — — — — (279 ) 3,132 Interest expense (1,243 ) (2 ) — (532 ) — (618 ) — — (2,395 ) Others, net 8,208 — 102 (31 ) — 493 — — 8,772 Fair value changes of preferred shares — (4 ) — — — — — — (4 ) Income before tax 20,041 (6 ) 111 143 57 (125 ) — (279 ) 19,942 Income tax (expenses)/benefits (2,053 ) — (57 ) — — — 221 — (1,889 ) Net income 17,988 (6 ) 54 143 57 (125 ) 221 (279 ) 18,053 Net income attributable to non-controlling interests shareholders 920 (1 ) — (19 ) 14 — 54 — 968 Net income attributable to the Company's ordinary shareholders 17,068 (5 ) 54 162 43 (125 ) 167 (279 ) 17,085 As of December 31, 2024IFRSs adjustments Amounts as recorded under U.S. GAAP Financialinstrumentswith specialfeatures Investments measured atfair value Leaseaccounting Impairmentof long-livedassets Convertiblesenior notes Share-based compensation Investment inJD Technology Amounts as recorded under IFRSs (RMB in millions) Note i Note ii Note iii Note iv Note v Note vi Note vii Property, equipment and software, net 82,737 — — — (2,172 ) — — — 80,565 Land use rights, net 36,833 — — — (1,175 ) — — — 35,658 Operating lease right-of-use assets 24,532 — — (1,448 ) — — — — 23,084 Investment in equity investees 56,850 — (29,772 ) — — — — 1,340 28,418 Marketable securities and other investments 59,370 — (2,907 ) — — — — — 56,463 Financial assets at fair value through profit or loss — — 33,977 — — — — — 33,977 Financial assets at fair value through other comprehensive income — — 237 — — — — — 237 Deferred tax assets 2,459 — 185 — — — (595 ) — 2,049 Total assets 698,234 — 1,720 (1,448 ) (3,347 ) — (595 ) 1,340 695,904 Other non-current liabilities 835 424 — — — — — — 1,259 Financial liability at fair value through profit or loss — 18,658 — — — 4,447 — — 23,105 Unsecured senior notes 24,770 — — — — (3,230 ) — — 21,540 Deferred tax liabilities 9,498 — 554 — — — — — 10,052 Total liabilities 384,937 19,082 554 — — 1,217 — — 405,790 Mezzanine Equity 484 (484 ) — — — — — — — Total Inc. shareholders' equity 239,347 (8,395 ) 1,155 (1,287 ) (2,509 ) (1,217 ) (474 ) 1,340 227,960 Non-controlling interests 73,466 (10,203 ) 11 (161 ) (838 ) — (121 ) — 62,154 Total shareholders' equity 312,813 (18,598 ) 1,166 (1,448 ) (3,347 ) (1,217 ) (595 ) 1,340 290,114 As of June 30, 2025IFRSs adjustments Amounts asrecorded underU.S. GAAP Financialinstrumentswith special features Investmentsmeasured atfair value Leaseaccounting Impairmentof long-livedassets Convertiblesenior notes Share-basedcompensation Investment inJD Technology Amounts asrecorded underIFRSs (RMB in millions) Note i Note ii Note iii Note iv Note v Note vi Note vii Property, equipment and software, net 87,160 — — — (2,135 ) — — — 85,025 Land use rights, net 37,173 — — — (1,155 ) — — — 36,018 Operating lease right-of-use assets 27,454 — — (1,305 ) — — — — 26,149 Investment in equity investees 48,225 — (28,554 ) — — — — 7,973 27,644 Marketable securities and other investments 61,397 — (1,906 ) — — — — — 59,491 Financial assets at fair value through profit or loss — — 31,876 — — — — — 31,876 Financial assets at fair value through other comprehensive income — — 237 — — — — — 237 Deferred tax assets 2,881 — 155 — — — (383 ) — 2,653 Total assets 706,939 — 1,808 (1,305 ) (3,290 ) — (383 ) 7,973 711,742 Accrued expenses and other liabilities 45,481 3,785 — — — — — — 49,266 Financial liability at fair value through profit or loss — 18,627 — — — 3,936 — — 22,563 Unsecured senior notes 24,712 — — — — (2,604 ) — — 22,108 Deferred tax liabilities 8,388 — 582 — — — — — 8,970 Total liabilities 409,650 22,412 582 — — 1,332 — — 433,976 Total Inc. shareholders' equity 227,160 (11,764 ) 1,216 (1,125 ) (2,466 ) (1,332 ) (312 ) 7,973 219,350 Non-controlling interests 70,129 (10,648 ) 10 (180 ) (824 ) — (71 ) — 58,416 Total shareholders' equity 297,289 (22,412 ) 1,226 (1,305 ) (3,290 ) (1,332 ) (383 ) 7,973 277,766 NotesUnder U.S. GAAP, certain financial instruments issued by subsidiaries of the Group in the form of shares with special features, including preferred shares and redeemable non-controlling interests, are accounted for as mezzanine equity or non-controlling interests depending on whether a redeemable feature exists, and whether the redemption is solely within the Group's control. Under IFRSs, since the Group does not have an unconditional right to avoid delivering cash upon the exercise of special features, the relevant financial instruments are classified as financial liabilities. Specifically, the redemption rights over non-controlling interests have been recognized as financial liabilities at present value of the redemption amount, while the preferred shares with certain special rights were entirely designated as financial liabilities at fair value through profit or U.S. GAAP, the Group uses measurement alternative to record the investments without readily determinable fair values at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and reports changes in the carrying value of the equity investments in profit or loss. Changes in the carrying value of the equity investments are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Those investments include convertible redeemable preferred shares, ordinary shares with preferential rights issued by privately held companies and equity investments in unlisted entities, in the form of ordinary shares without significant influence. In addition, the Group accounts for certain investments in private equity funds over which the Group does not have the ability to exercise significant influence under the existing practical expedient, and estimates fair value using net asset value per share (or its equivalent) of the investment. The Group also applies the equity method of accounting to account for certain equity investments in private equity funds. Under IFRSs, the aforementioned investments are classified as financial assets at fair value through profit or loss and measured at fair value, except for certain equity investments not held for trading but held for long-term strategic purposes, which are designated as financial assets at fair value through other comprehensive income. Fair value changes of these investments are recognized in profit or loss or other comprehensive income, classification and measurement Under U.S. GAAP, the amortization of the right-of-use assets and interest expense related to the lease liabilities are recorded together as lease expense to produce a straight-line recognition effect in profit or loss. Under IFRSs, the amortization of the right-of-use assets is on a straight-line basis while the interest expense related to the lease liabilities are measured at amortized cost. Sale-and-leaseback arrangements Under U.S. GAAP, if the sale-and-leaseback transaction qualifies as a sale, the entire gain on the transaction would be recognized. Under IFRSs, for sale-and-leaseback transactions that qualify as a sale, the gain would be limited to the amount related to the residual portion of the asset sold. The amount of the gain related to the underlying asset leased back to the lessee would be offset against the lessee's right-of-use U.S. GAAP, the Group takes a two-step approach to calculate an asset or asset group impairment by comparing the asset or asset group's carrying amount with the sum of future undiscounted cash flows as a test of recoverability, and record the amount by which the carrying value exceeds the fair value as impairment loss when the carrying amount is not recoverable. Under IFRSs, the Group takes a one-step approach to calculate an asset or cash generating unit impairment by recording the amount by which the carrying value exceeds the recoverable amount as an impairment loss when impairment indicators U.S. GAAP, Convertible Senior Notes are accounted for as debt in their entirety and are measured at amortized cost, with debt issuance cost amortized and recognized as interest expenses using the effective interest method. Under IFRSs, the Convertible Senior Notes are hybrid instruments, each of which consists of a host debt contract and embedded derivatives. The conversion feature is not accounted for as equity as it will not be settled by delivering a fixed number of the Group's own equity instruments and receiving a fixed amount of cash or another financial asset and is recognized as a separate derivative liability measured at fair value through profit or loss as it meets the separation conditions under IFRS 9. The embedded repurchase and redemption options of Convertible Senior Notes are closely related to the host debt contracts and therefore not accounted for as derivatives separately. The host debt contract is initially measured as the difference between the fair value of the entire hybrid instruments and the fair value of the conversion feature. Subsequent to the initial recognition, the host debt contracts are accounted for at amortized cost with interest expenses recognized using the effective interest method, and the changes in fair value of the conversion feature are recognized in profit or U.S. GAAP, for awards that ordinarily give rise to a tax deduction under existing tax law, deferred taxes are computed on the basis of the compensation expense that is recognized for financial reporting purposes. In addition, tax benefits in excess of or less than the related deferred tax assets are recognized in profit or loss in the period in which the amount of the deduction is determined (typically when an award vests or, in the case of options, is exercised or expires). Under IFRSs, for awards that will give rise to a tax deduction under the applicable tax law, deferred taxes are computed on the basis of the hypothetical tax deduction for the share-based payment that corresponds to the percentage earned to date (i.e., the intrinsic value of the award on the reporting date multiplied by the percentage vested). In addition, tax benefits less than or equal to the related deferred tax assets are recognized in profit or loss, otherwise are recognized in U.S. GAAP, for the modification of redemption terms and sequent redemptions/new shares issuance carried out by JD Technology, the Group's indirectly acquired equity interests was accomplished through a transaction under common control. Accordingly, the Group recognizes its investment in JD Technology based on its proportionate share of JD Technology's net assets and records the difference between the proceeds transferred and the carrying amounts of its investment in JD Technology in additional paid-in capital. Under IFRSs, the indirect acquisition of equity interests in JD Technology is accounted for in the same way as a purchase of additional interests in the investee. The carrying value of the Group's investment in JD Technology does not change before and after the transaction. In addition, under U.S. GAAP, JD Technology has remeasured the fair value of relevant shareholders' investments due to the modification of redemption terms and recognized the changes of fair value in profit and loss, which has further affected the Group's results of equity investees using equity-method. Under IFRSs, JD Technology has recognized the loss on derecognition of the redeemable liabilities for early redemption, and the interests accrued till liabilities redeemed. It also further affected the Group's results of equity investees using equity method. ________________________ 1 The U.S. dollar (US$) amounts disclosed in this announcement, except for those transaction amounts that were actually settled in U.S. dollars, are presented solely for the convenience of the readers. The conversion of Renminbi (RMB) into US$ in this announcement is based on the exchange rate set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System as of June 30, 2025, which was RMB7.1636 to US$1.00. The percentages stated in this announcement are calculated based on the RMB amounts.2 See the sections entitled 'Non-GAAP Measures' and 'Unaudited Reconciliation of GAAP and Non-GAAP Results' for more information about the non-GAAP measures referred to in this announcement.3 The number of ordinary shares outstanding as of December 31, 2024 was approximately 2,903 million shares.4 JD Ecosystem is a closely integrated business network providing comprehensive service for customers and comprises the Company and certain affiliates who share the 'JD' brand name, currently including Jingdong Technology Holding Co., Ltd. and Allianz Jingdong General Insurance Company Ltd.
Yahoo
08-08-2025
- Business
- Yahoo
Helly Hansen acquisition boosts Kontoor Brands H1 bottom line
Kontoor Brands saw net revenues for the six months (H1) ending June, increase 3% to $1.28bn. Operating income for the period fell 5% to $151.8m and net income increased 5% to $116.8m. During the second quarter, net revenues increased 8% to $658m. Reported operating income was $79m while reported EPS was $1.32. Adjusted EPS of $1.21 increased 23% compared to prior year. 'Our strong second quarter results were driven by better-than-expected organic revenue growth, gross margin expansion, operating efficiency and cash generation, as well as a stronger-than-expected contribution from Helly Hansen,' said Scott Baxter, president, CEO and chairman of the board of directors. 'We welcomed Helly Hansen to the Kontoor family in June and the integration is off to a great start. We are raising our full year outlook including increased investments and the absorption of higher tariffs, reflecting the resilience of our operating model, strong execution, and the momentum across the portfolio as we move into the second half of the year.' Price hikes, sourcing, product optimisation targeted as tariffs weigh on outlook Kontoor Brands issued its full year outlook which now includes the anticipated impact from recently enacted increases in tariffs. The company's outlook assumes a 30% reciprocal tariff on China and a 20% reciprocal tariff on all other countries from which it sources product, with the exception of Mexico. "The company continues to expect to substantially offset the impact from recently enacted increases in tariffs over a 12 to 18 month period through a combination of targeted price increases, sourcing and production optimisation within our global supply chain, inventory management, supplier partnerships and other initiatives," it said. Baxter added: "We are raising our full year outlook to reflect stronger first half results, greater visibility into our tariff mitigation initiatives, and the confidence we have in the outlook for our business for the balance of the year. "Our ability to largely offset the impact from higher tariffs reflects the strength of our brands, the agility of our supply chain, and the benefits from Project Jeanius. To support our momentum, we are making incremental demand creation investments to fuel accelerating revenue growth and continued market share gains. While we will continue to manage the business prudently in light of the environment, the third quarter is off to an encouraging start and we enter the second half of the year from a position of strength.' Revenue now expected to be in the range of $3.09 to $3.12bn, representing an increase of approximately 19 to 20% (including an approximate 18% benefit from Helly Hansen) Adjusted operating income is now expected to be approximately $443m, representing an increase of 16% compared to the prior year. This compares to the prior outlook of $437m to $445m. Full year 2025 adjusted operating income now includes an approximate $30m impact from recently enacted increases in tariffs and incremental demand creation and other investments compared to the prior outlook. Adjusted EPS is now expected to be approximately $5.45, representing an increase of 11% compared to the prior year. This compares to the prior outlook of $5.40 to $5.50. Excluding the impact of Helly Hansen, adjusted EPS is expected to be approximately $5.25, representing an increase of 7% compared to the prior year. This compares to the prior outlook of $5.20 to $5.30. "Helly Hansen acquisition boosts Kontoor Brands H1 bottom line" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. 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
28-07-2025
- Business
- Yahoo
UNIVERSAL HEALTH SERVICES, INC. ANNOUNCES FINANCIAL RESULTS FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 2025, AND INCREASES 2025 FULL YEAR OPERATING RESULTS FORECAST
Consolidated Results of Operations, As Reported and As Adjusted – Three-month periods ended June 30, 2025 and 2024: KING OF PRUSSIA, Pa., July 28, 2025 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that its reported net income attributable to UHS was $353.2 million, or $5.43 per diluted share, during the second quarter of 2025, as compared to $289.2 million, or $4.26 per diluted share, during the second quarter of 2024. Net revenues increased by 9.6% to $4.284 billion during the second quarter of 2025, as compared to $3.908 billion during the second quarter of 2024. As reflected on the Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule"), our adjusted net income attributable to UHS during the second quarter of 2025 was $347.9 million, or $5.35 per diluted share, as compared to $292.6 million, or $4.31 per diluted share, during the second quarter of 2024. Included in our reported and adjusted net income attributable to UHS during the second quarter of 2025, were aggregate net pre-tax incremental reimbursements (net of related provider taxes) of approximately $101 million recorded in connection with the following: (i) approximately $58 million, applicable to the period of July 1, 2024 through June 30, 2025, resulting from the recently approved Tennessee Medicaid directed payment program, and; (ii) approximately $43 million of other combined additional net reimbursements recorded in connection with existing supplemental Medicaid programs in various states (approximately $21 million of which consisted of prior year retroactive reimbursements). Also included in our results of operations during the second quarter of 2025, was a pre-tax loss of approximately $25 million incurred in connection with a newly constructed, 142-bed acute care hospital located in Washington, D.C., that was completed and opened in April, 2025. The above-mentioned incremental Medicaid supplemental program reimbursements, and the substantial majority of the pre-tax loss incurred by the recently opened acute care hospital, were not included in our original 2025 operating results forecast, as previously disclosed on February 26, 2025. As reflected on the Supplemental Schedule, included in our reported results during the second quarter of 2025 were: (i) an unrealized after-tax gain of $4.5 million, or $.07 per diluted share ($5.9 million pre-tax), resulting from an increase in the market value of certain equity securities (included in "Other (income) expense, net"), and; (ii) a favorable net after-tax impact of $0.8 million, or $.01 per diluted share, resulting from the net tax benefit recorded in connection with "ASU 2016-09", Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting, net of the impact of executive compensation limitations pursuant to IRC section 162(m). As reflected on the Supplemental Schedule, included in our reported results during the second quarter of 2024 were: (i) an unrealized after-tax loss of $5.9 million, or $.09 per diluted share ($7.7 million pre-tax), resulting from a decrease in the market value of certain equity securities, and; (ii) a favorable after-tax impact of $2.5 million, or $.04 per diluted share, resulting from the tax benefit recorded in connection ASU 2016-09. As calculated on the attached Supplemental Schedule, our earnings before interest, taxes, depreciation & amortization ("EBITDA net of NCI", NCI is net income attributable to noncontrolling interests), was $651.4 million during the second quarter of 2025, as compared to $573.2 million during the second quarter of 2024. Our adjusted earnings before interest, taxes, depreciation & amortization ("Adjusted EBITDA net of NCI"), which excludes the impact of other (income) expense, net, was $642.9 million during the second quarter of 2025, as compared to $578.7 million during the second quarter of 2024. Consolidated Results of Operations, As Reported and As Adjusted – Six-month periods ended June 30, 2025 and 2024: Reported net income attributable to UHS was $669.9 million, or $10.23 per diluted share, during the first six months of 2025, as compared to $551.0 million, or $8.08 per diluted share, during the comparable period of 2024. Net revenues increased by 8.2% to $8.384 billion during the first six months of 2025, as compared to $7.751 billion during the comparable period of 2024. As reflected on the Supplemental Schedule, our adjusted net income attributable to UHS during the first six months of 2025 was $667.4 million, or $10.19 per diluted share, as compared to $545.7 million, or $8.00 per diluted share, during the comparable period of 2024. As reflected on the Supplemental Schedule, included in our reported results during the first six months of 2025 were: (i) an unrealized after-tax gain of $1.2 million, or $.02 per diluted share ($1.6 million pre-tax), resulting from an increase in the market value of certain equity securities, and; (ii) a favorable net after-tax impact of $1.3 million, or $.02 per diluted share, resulting from the net tax benefit recorded in connection with ASU 2016-09. As reflected on the Supplemental Schedule, included in our reported results during the first six months of 2024 were: (i) an unrealized after-tax loss of $6.3 million, or $.09 per diluted share ($8.2 million pre-tax), resulting from a decrease in the market value of certain equity securities, and; (ii) a favorable after-tax impact of $11.6 million, or $.17 per diluted share, resulting from the tax benefit recorded in connection with ASU 2016-09. As calculated on the attached Supplemental Schedule, our EBITDA net of NCI, was $1.255 billion during the first six months of 2025, as compared to $1.099 billion during the comparable period of 2024. Our Adjusted EBITDA net of NCI, was $1.241 billion during the first six months of 2025, as compared to $1.104 billion during the comparable period of 2024. Acute Care Services – Three and six-month periods ended June 30, 2025 and 2024: During the second quarter of 2025, at our acute care hospitals owned during both periods ("same facility basis"), adjusted admissions (adjusted for outpatient activity) increased by 2.0% while adjusted patient days increased by 1.1%, as compared to the second quarter of 2024. At these facilities, during the second quarter of 2025, net revenue per adjusted admission increased by 3.8% while net revenue per adjusted patient day increased by 4.7%, as compared to the second quarter of 2024. Net revenues generated from our acute care services, on a same facility basis, increased by 7.9% during the second quarter of 2025, as compared to the second quarter of 2024. During the six-month period ended June 30, 2025, at our acute care hospitals on a same facility basis, adjusted admissions increased by 2.2% while adjusted patient days increased by 0.7%, as compared to the comparable period of 2024. At these facilities, during the first six months of 2025, net revenue per adjusted admission increased by 3.2% while net revenue per adjusted patient day increased by 4.7%, as compared to the comparable period of 2024. Net revenues generated from our acute care services, on a same facility basis, increased by 7.2% during the first six months of 2025, as compared to the comparable period of 2024. Behavioral Health Care Services – Three and six-month periods ended June 30, 2025 and 2024: During the second quarter of 2025, at our behavioral health care facilities on a same facility basis, adjusted admissions increased by 0.4% while adjusted patient days increased by 1.2%, as compared to the second quarter of 2024. At these facilities, during the second quarter of 2025, net revenue per adjusted admission increased by 8.6% and net revenue per adjusted patient day increased by 7.8%, as compared to the second quarter of 2024. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 8.9% during the second quarter of 2025, as compared to the second quarter of 2024. During the first six months of 2025, at our behavioral health care facilities on a same facility basis, adjusted admissions decreased by 0.6% while adjusted patient days increased by 0.4%, as compared to the comparable period of 2024. At these facilities, during the first six months of 2025, net revenue per adjusted admission increased by 7.9% and net revenue per adjusted patient day increased by 6.8%, as compared to the comparable period of 2024. Net revenues generated from our behavioral health care services, on a same facility basis, increased by 7.3% during the first six months of 2025, as compared to the comparable period of 2024. Net Cash Provided by Operating Activities and Liquidity: Net Cash Provided by Operating Activities: During the six-month period ended June 30, 2025, our net cash provided by operating activities was $909 million as compared to $1.076 billion during the first six months of 2024. The $167 million net decrease in our net cash provided by operating activities consisted of: (i) a favorable change of $142 million resulting from an increase in net income plus/minus depreciation and amortization expense, stock-based compensation expense and gains/losses on sales of assets and businesses, offset by; (ii) an unfavorable change of $159 million in accounts receivable; (iii) an unfavorable change of $83 million in accrued and deferred income taxes; (iv) an unfavorable change of $20 million in payments made in settlement of self-insurance claims, net of commercial insurance reimbursements; (v) a $19 million unfavorable change in other assets and deferred charges, and; (vi) $28 million of other combined net unfavorable changes. Liquidity: As of June 30, 2025, we had $1.08 billion of aggregate available borrowing capacity pursuant to our $1.3 billion revolving credit facility, net of outstanding borrowings and letters of credit. Stock Repurchase Program: In connection with our stock repurchase program, shares of our Class B Common Stock may be repurchased, from time to time as conditions allow, on the open market or in negotiated private transactions. Pursuant to this program, during the second quarter of 2025, we have repurchased 875,000 shares at an aggregate cost of approximately $150.8 million (average price of approximately $172 per share). During the first six months of 2025, we have repurchased 1.875 million shares at an aggregate cost of approximately $331.5 million (average price of approximately $177 per share). As of June 30, 2025, we had an aggregate available repurchase authorization of approximately $492.9 million pursuant to our stock repurchase program. Revised 2025 Operating Results Forecast: Based upon the operating trends and financial results experienced during the first six months of 2025, as well as the recent approval of a new Medicaid supplemental payment program in Tennessee and changes in reimbursements to certain existing Medicaid supplemental payment programs in various states, as indicated on the Revised Forecast table below, we are increasing our operating results forecast range for consolidated net revenues; adjusted earnings before interest, taxes, depreciation & amortization, and the impacts of other income/expense and net income attributable to noncontrolling interests ("Adjusted EBITDA, net of NCI"), and adjusted net income attributable to UHS per diluted share ("Adjusted EPS-diluted") for the year ended December 31, 2025. The tables below include our revised full year 2025 operating results forecast, as well as our original 2025 operating results forecast which was previously disclosed on February 26, ForecastOriginal ForecastFor the Year EndedFor the Year EndedDecember 31, 2025December 31, 2025Low HighLow High Net revenues $17.096 billion $17.312 billion$17.020 billion $17.364 billion Adjusted EBITDA, net of NCI $2.458 billion $2.543 billion$2.357 billion $2.484 billion Adjusted EPS – diluted $20.00 per share $21.00 per share$18.45 per share $19.95 per share Our revised 2025 forecasted net revenues are estimated to be approximately $17.096 billion to $17.312 billion, representing a change of 0.4% to -0.3% as compared to our original range of 2025 forecasted net revenues. Our revised 2025 forecasted Adjusted EBITDA, net of NCI, is estimated to be approximately $2.458 billion to $2.543 billion, representing increases of 4.3% to 2.4% over our original range of 2025 forecasted Adjusted EBITDA, net of NCI. Our revised 2025 forecasted Adjusted EPS-diluted is estimated to be $20.00 per share to $21.00 per share, representing increases of 8.4% to 5.3% over our original range of 2025 forecasted Adjusted EPS-diluted. Because we do not believe we can forecast certain items with sufficient accuracy, our 2025 revised forecasted range of Adjusted EBITDA, net of NCI, net income attributable to UHS, and Adjusted EPS-diluted, exclude the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as changes in the market value of shares of certain equity securities, the impact of ASU 2016-09, and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, other amounts that may be reflected in the current or prior year financial statements that relate to prior periods, and the impact of share repurchases that differ from our forecasted assumptions. It is also subject to certain conditions including those as set forth below in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures. Adjusted EBITDA net of NCI, is a non-GAAP financial measure and should not be considered a measure of financial performance under GAAP. We believe Adjusted EBITDA net of NCI is helpful to our investors as a measure of our operating performance. Please see the Supplemental Non-GAAP Disclosures - 2025 Revised Operating Results Forecast schedule as included herein for additional information and a reconciliation of our 2025 revised forecasted range of adjusted net income attributable to UHS to our 2025 revised forecasted range of Adjusted EBITDA net of NCI. Conference call information: We will hold a conference call for investors and analysts at 10:00 a.m. eastern time on July 29, 2025. A live webcast of the call will be available on our website at To participate via telephone, please register in advance at this link. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique passcode and registrant ID that can be used to access the call. A replay of the call will be available for one full year following the live call. General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures: One of the nation's largest and most respected providers of hospital and healthcare services, Universal Health Services, Inc. (the "Company") has built an impressive record of achievement and performance. Growing steadily since our inception into an esteemed Fortune 500 corporation, our annual revenues during 2024 were $15.8 billion. UHS ranked #271 on the Fortune 500; and #355 on Forbes' list of America's Largest Public Companies. In 2025, UHS was again recognized as one of the World's Most Admired Companies by Fortune. Our operating philosophy is as effective today as it was upon the Company's founding in 1979, enabling us to provide compassionate care to our patients and their loved ones. Our strategy includes building or acquiring high quality hospitals in rapidly growing markets, investing in the people and equipment needed to allow each facility to thrive, and becoming the leading healthcare provider in each community we serve. Headquartered in King of Prussia, PA, UHS has approximately 99,300 employees and, through its subsidiaries, operates 29 inpatient acute care hospitals, 338 inpatient behavioral health facilities, 61 outpatient facilities and ambulatory care access points, an insurance offering, a physician network and various related services located in 39 states, Washington, D.C., the United Kingdom and Puerto Rico. It acts as the advisor to Universal Health Realty Income Trust, a real estate investment trust (NYSE:UHT). For additional information visit This press release contains forward-looking statements based on current management expectations. Numerous factors, including those disclosed herein, those related to healthcare industry trends and those detailed in our filings with the Securities and Exchange Commission (as set forth in Item 2-Forward Looking Statements and Risk Factors in our Form 10-Q for the quarter ended March 31, 2025 and in Item 1A-Risk Factors, and Item 7-Forward-Looking Statements and Risk Factors, in our Form 10-K for the year ended December 31, 2024), may cause the results to differ materially from those anticipated in the forward-looking statements. These statements are subject to risks and uncertainties and therefore actual results may differ materially. Readers should not place undue reliance on such forward-looking statements which reflect management's view only as of the date hereof. We undertake no obligation to revise or update any forward-looking statements, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise. Many of the factors that could affect our future results are beyond our control or ability to predict, including, but not limited to: A significant portion of our revenues are derived from federal and state government programs including the Medicare and Medicaid programs. Payments from these programs are subject to statutory and regulatory changes, administrative rulings, interpretations and determinations, requirements for utilization review, and federal and state funding restrictions. Changes to these programs could materially affect program payments which could materially impact our results of operations. In addition, we receive substantial reimbursement from multiple states in connection with various supplemental Medicaid payment programs. Failure to renew these programs beyond their scheduled termination dates, failure of the public hospitals to provide the necessary Inter-Governmental Transfers for the states' share of the Medicaid disproportionate share hospital programs, and the failure of our hospitals that currently receive supplemental Medicaid revenues to qualify for future funds under these programs could cause our actual results of operations for the year ended December 31, 2025 to differ materially from our 2025 revised operating results forecast. Legislation adopted on July 4, 2025, attaches work and community service requirements to eligibility for Medicaid benefits that will have the effect of limiting Medicaid enrollment and expenditures. That legislation also places limits on provider fees used to increase federal Medicaid funding to states and eliminates certain exchange premium tax credits beyond 2025 As these provisions become effective over the next several years, they may be expected to reduce our revenues and likely increase the level of uncompensated care provided by our facilities. The increase in interest rates during the past few years has increased our interest expense significantly thereby reducing our free cash flow. As such, although interest rates have moderated more recently, the effects of increased borrowing rates have adversely impacted our results of operations, financial condition and cash flows. We cannot predict future changes to interest rates, however, significant increases in our borrowing rates could have a material unfavorable impact on our future results of operations and our ability to access the capital markets on favorable terms. Changes in laws or policies governing the terms of foreign trade, and in particular, increased trade restrictions, tariffs or taxes on imports from where our products or materials are made (either directly or through our suppliers) could have an impact on our competitive position, business operations and financial results. The outcome of known and unknown litigation, liabilities and other claims asserted against us and/or our subsidiaries, including, but not limited to, the matters related to Cumberland Hospital for Children and Adolescents, located in New Kent, Virginia, as previously disclosed in various filings including, most recently, our Form 10-Q for the quarterly period ended March 31, 2025. Although we can make no assurances regarding the ultimate outcome of these matters, or what damages will ultimately be awarded, the final resolution of these matters could have a material adverse effect on the Company. We believe that adjusted net income attributable to UHS, adjusted net income attributable to UHS per diluted share, EBITDA net of NCI and Adjusted EBITDA net of NCI, which are non-GAAP financial measures ("GAAP" is Generally Accepted Accounting Principles in the United States of America), are helpful to our investors as measures of our operating performance. In addition, we believe that, when applicable, comparing and discussing our financial results based on these measures, as calculated, is helpful to our investors since it neutralizes the effect of material items impacting our net income attributable to UHS, such as, changes in the market value of shares of certain equity securities, the impact of ASU 2016-09, net of the impact of executive compensation limitations pursuant to IRC section 162(m), and other potential material items that are nonrecurring or non-operational in nature including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. To obtain a complete understanding of our financial performance these measures should be examined in connection with net income attributable to UHS, as determined in accordance with GAAP, and as presented in the condensed consolidated financial statements and notes thereto in this report or in our other filings with the Securities and Exchange Commission including our Report on Form 10-Q for the quarter ended March 31, 2025 and our Report on Form 10-K for the year ended December 31, 2024. Since the items included or excluded from these measures are significant components in understanding and assessing financial performance under GAAP, these measures should not be considered to be alternatives to net income as a measure of our operating performance or profitability. Since these measures, as presented, are not determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable to other similarly titled measures of other companies. Investors are encouraged to use GAAP measures when evaluating our financial performance. Universal Health Services, Inc. Consolidated Statements of Income (in thousands, except per share amounts) (unaudited)Three monthsSix monthsended June 30,ended June 30,2025202420252024 Net revenues $4,283,816$3,907,604$8,383,536$7,751,186 Operating charges: Salaries, wages and benefits 2,014,9511,856,3723,966,0553,698,996 Other operating expenses 1,162,5661,043,1162,268,3182,075,286 Supplies expense 418,785388,063821,666791,636 Depreciation and amortization 152,004147,480300,349288,483 Lease and rental expense 35,24036,17572,05371,6253,783,5463,471,2067,428,4416,926,026 Income from operations 500,270436,398955,095825,160 Interest expense, net 35,36448,89975,420101,725 Other (income) expense, net (8,479)5,493(14,138)5,343 Income before income taxes 473,385382,006893,813718,092 Provision for income taxes 110,77387,676209,573157,940 Net income 362,612294,330684,240560,152 Less: Net income (loss) attributable tononcontrolling interests ("NCI") 9,3945,17814,3429,166 Net income attributable to UHS $353,218$289,152$669,898$550,986 Basic earnings per share attributable to UHS (a) $5.49$4.32$10.36$8.22 Diluted earnings per share attributable to UHS (a) $5.43$4.26$10.23$8.08 Universal Health Services, Inc. Footnotes to Consolidated Statements of Income (in thousands, except per share amounts) (unaudited)Three monthsSix months (a) Earnings per share calculation: ended June 30,ended June 30,2025202420252024 Basic and diluted:Net income attributable to UHS $353,218$289,152$669,898$550,986 Less: Net income attributable to unvested restricted share grants 0(5)0(50) Net income attributable to UHS - basic and diluted $353,218$289,147$669,898$550,936 Weighted average number of common shares - basic 64,35666,87864,66367,041 Basic earnings per share attributable to UHS: $5.49$4.32$10.36$8.22 Weighted average number of common shares 64,35666,87864,66367,041 Add: Other share equivalents 6351,0428511,160 Weighted average number of common shares and equiv. - diluted 64,99167,92065,51468,201 Diluted earnings per share attributable to UHS: $5.43$4.26$10.23$8.08 Universal Health Services, Inc. Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") For the Three Months ended June 30, 2025 and 2024 (in thousands, except per share amounts) (unaudited) Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA/Adjusted EBITDA net of NCI")Three months ended% NetThree months ended% NetJune 30, 2025revenuesJune 30, 2024revenues Net income attributable to UHS $353,218$289,152 Depreciation and amortization 152,004147,480 Interest expense, net 35,36448,899 Provision for income taxes 110,77387,676 EBITDA net of NCI $651,35915.2 %$573,20714.7 % Other (income) expense, net (8,479)5,493 Adjusted EBITDA net of NCI $642,88015.0 %$578,70014.8 % Net revenues $4,283,816$3,907,604 Calculation of Adjusted Net Income Attributable to UHSThree months endedThree months endedJune 30, 2025June 30, 2024PerPerAmountDiluted ShareAmountDiluted Share Net income attributable to UHS $353,218$5.43$289,152$4.26 Plus/minus after-tax adjustments:Unrealized (gain) loss on equity securities (4,534)(0.07)5,8690.09 Impact of ASU 2016-09, net (796)(0.01)(2,456)(0.04) Subtotal adjustments (5,330)(0.08)3,4130.05 Adjusted net income attributable to UHS $347,888$5.35$292,565$4.31 Universal Health Services, Inc. Schedule of Non-GAAP Supplemental Information ("Supplemental Schedule") For the Six Months ended June 30, 2025 and 2024 (in thousands, except per share amounts) (unaudited) Calculation of Earnings/Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA/Adjusted EBITDA net of NCI")Six months ended% NetSix months ended% NetJune 30, 2025revenuesJune 30, 2024revenues Net income attributable to UHS $669,898$550,986 Depreciation and amortization 300,349288,483 Interest expense, net 75,420101,725 Provision for income taxes 209,573157,940 EBITDA net of NCI $1,255,24015.0 %$1,099,13414.2 % Other (income) expense, net (14,138)5,343 Adjusted EBITDA net of NCI $1,241,10214.8 %$1,104,47714.2 % Net revenues $8,383,536$7,751,186 Calculation of Adjusted Net Income Attributable to UHSSix months endedSix months endedJune 30, 2025June 30, 2024PerPerAmountDiluted ShareAmountDiluted Share Net income attributable to UHS $669,898$10.23$550,986$8.08 Plus/minus after-tax adjustments:Unrealized (gain) loss on equity securities (1,249)(0.02)6,3130.09 Impact of ASU 2016-09, net (1,257)(0.02)(11,612)(0.17) Subtotal adjustments (2,506)(0.04)(5,299)(0.08) Adjusted net income attributable to UHS $667,392$10.19$545,687$8.00 Universal Health Services, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) June 30, December 31,2025 2024 Assets Current assets: Cash and cash equivalents$ 137,595$ 125,983 Accounts receivable, net 2,302,247 2,177,751 Supplies 222,783 220,940 Other current assets 327,357 291,614 Total current assets 2,989,982 2,816,288Property and equipment 13,237,622 12,643,283 Less: accumulated depreciation (6,354,633) (6,071,058)6,882,989 6,572,225Other assets: Goodwill 3,977,976 3,932,879 Deferred income taxes 147,680 118,449 Right of use assets-operating leases 389,836 418,719 Deferred charges 9,535 9,404 Other 587,579 601,785 Total Assets$ 14,985,577$ 14,469,749Liabilities and Stockholders' Equity Current liabilities: Current maturities of long-term debt$ 40,897$ 40,059 Accounts payable and other liabilities 2,197,635 2,081,479 Operating lease liabilities 73,168 74,649 Federal and state taxes 5,371 14,219 Total current liabilities 2,317,071 2,210,406Other noncurrent liabilities 629,492 655,806 Operating lease liabilities noncurrent 351,932 376,239 Long-term debt 4,542,000 4,464,482Redeemable noncontrolling interest 2,042 13,293UHS common stockholders' equity 7,030,048 6,666,207 Noncontrolling interest 112,992 83,316 Total equity 7,143,040 6,749,523Total Liabilities and Stockholders' Equity$ 14,985,577$ 14,469,749 Universal Health Services, Inc. Consolidated Statements of Cash Flows (in thousands) (unaudited)Six monthsended June 30,20252024 Cash Flows from Operating Activities: Net income $684,240$560,152 Adjustments to reconcile net income to net cash provided by operating activities:Depreciation & amortization 300,349288,483 Loss (gain) on sales of assets and businesses 2,833(3,725) Stock-based compensation expense 45,70746,162 Changes in assets & liabilities, net of effects fromacquisitions and dispositions: Accounts receivable (92,636)66,174 Accrued interest (4,532)3,310 Accrued and deferred income taxes (55,913)26,970 Other working capital accounts 25,32439,686 Other assets and deferred charges (22,404)(3,030) Other 16,14314,277 Accrued insurance expense, net of commercial premiums paid 94,696102,222 Payments made in settlement of self-insurance claims, net of commercial insurance reimbursements (84,781)(64,994) Net cash provided by operating activities 909,0261,075,687 Cash Flows from Investing Activities: Property and equipment additions (505,040)(449,933) Proceeds received from sales of assets and businesses 2,9805,428 Acquisition of businesses and property (8,314)0 (Outflows) inflows from foreign exchange contracts that hedge our net U.K. investment (66,402)6,830 (Increase) decrease in capital reserves of commercial insurance subsidiary (462)196 Net cash used in investing activities (577,238)(437,479) Cash Flows from Financing Activities: Repayments of long-term debt (18,548)(382,675) Additional borrowings 94,60112,038 Repurchase of common shares (378,542)(237,987) Dividends paid (26,434)(27,006) Issuance of common stock 8,1377,227 Profit distributions to noncontrolling interests (9,621)(5,089) Purchase (sale) of ownership interests by (from) minority members 11,3365,025 Net cash used in financing activities (319,071)(628,467) Effect of exchange rate changes on cash, cash equivalents and restricted cash 3,931(392) Increase in cash, cash equivalents and restricted cash 16,6489,349 Cash, cash equivalents and restricted cash, beginning of period 224,752214,470 Cash, cash equivalents and restricted cash, end of period $241,400$223,819 Supplemental Disclosures of Cash Flow Information: Interest paid $77,448$95,9026,921 Income taxes paid, net of refunds $251,786$131,499 Noncash purchases of property and equipment $148,887$108,260 Universal Health Services, Inc. Supplemental Statistical Information (unaudited) % Change % Change 3 Months ended6 Months ended Same Facility: 6/30/20256/30/2025 Acute Care Hospitals (1)Revenues 7.9 %7.2 % Adjusted Admissions 2.0 %2.2 % Adjusted Patient Days 1.1 %0.7 % Revenue Per Adjusted Admission 3.8 %3.2 % Revenue Per Adjusted Patient Day 4.7 %4.7 % Behavioral Health Hospitals (1)Revenues 8.9 %7.3 % Adjusted Admissions 0.4 %-0.6 % Adjusted Patient Days 1.2 %0.4 % Revenue Per Adjusted Admission 8.6 %7.9 % Revenue Per Adjusted Patient Day 7.8 %6.8 % UHS Consolidated Second Quarter EndedSix Months Ended6/30/20256/30/20246/30/20256/30/2024 Revenues $4,283,816$3,907,604$8,383,536$7,751,186 EBITDA net of NCI $651,359$573,207$1,255,240$1,099,134 EBITDA Margin net of NCI 15.2 %14.7 %15.0 %14.2 % Adjusted EBITDA net of NCI $642,880$578,700$1,241,102$1,104,477 Adjusted EBITDA Margin net of NCI 15.0 %14.8 %14.8 %14.2 % Cash Flow From Operations $548,978$679,281$909,026$1,075,687 Capital Expenditures $266,014$241,394$505,040$449,933 Days Sales Outstanding 5051 Debt $4,582,897$4,544,239 UHS' Shareholders Equity $7,030,048$6,485,372 Debt / Total Capitalization 39.5 %41.2 % Debt / EBITDA net of NCI (2) 1.912.29 Debt / Adjusted EBITDA net of NCI (2)1.922.27 Debt / Cash From Operations (2) 2.412.69 (1) Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year presentation. (2) Latest 4 quarters. Universal Health Services, Inc. Acute Care Hospital Services For the Three and Six months ended June 30, 2025 and 2024 (in thousands) (unaudited)Same Facility Basis - Acute Care Hospital ServicesThree months endedThree months endedSix months endedSix months ended June 30, 2025June 30, 2024June 30, 2025June 30, 2024 Amount% of NetRevenues Amount% of NetRevenues Amount% of NetRevenues Amount% of NetRevenues Net revenues$2,272,316100.0 %$2,105,189100.0 %$4,516,378100.0 %$4,213,234100.0 % Operating charges: Salaries, wages and benefits905,96039.9 %858,55940.8 %1,800,06139.9 %1,719,64540.8 % Other operating expenses646,54628.5 %579,98127.6 %1,276,57128.3 %1,157,56327.5 % Supplies expense352,07515.5 %331,90115.8 %695,54515.4 %679,03116.1 % Depreciation and amortization89,1903.9 %94,3374.5 %177,2743.9 %184,6204.4 % Lease and rental expense24,1011.1 %24,3141.2 %49,1721.1 %48,1471.1 % Subtotal-operating expenses2,017,87288.8 %1,889,09289.7 %3,998,62388.5 %3,789,00689.9 % Income from operations254,44411.2 %216,09710.3 %517,75511.5 %424,22810.1 % Interest expense, net (1,613)(0.1) %9860.0 %6490.0 %2,2860.1 % Other (income) expense, net (1,011)(0.0) %(677)(0.0) %(9,583)(0.2) %(517)(0.0) % Income before income taxes$257,06811.3 %$215,78810.3 %$526,68911.7 %$422,45910.0 %All Acute Care Hospital ServicesThree months endedThree months endedSix months endedSix months ended June 30, 2025June 30, 2024June 30, 2025June 30, 2024 Amount% of NetRevenuesAmount% of NetRevenues Amount% of NetRevenuesAmount% of NetRevenues Net revenues$2,401,034100.0 %$2,178,686100.0 %$4,750,263100.0 %$4,363,767100.0 % Operating charges: Salaries, wages and benefits937,10539.0 %859,14739.4 %1,847,82938.9 %1,720,69439.4 % Other operating expenses757,12031.5 %655,76030.1 %1,472,46031.0 %1,310,74330.0 % Supplies expense360,98515.0 %331,87715.2 %709,37814.9 %678,88115.6 % Depreciation and amortization96,3704.0 %94,3614.3 %191,0174.0 %184,6734.2 % Lease and rental expense24,2391.0 %24,3161.1 %49,5781.0 %48,1491.1 % Subtotal-operating expenses2,175,81990.6 %1,965,46190.2 %4,270,26289.9 %3,943,14090.4 % Income from operations225,2159.4 %213,2259.8 %480,00110.1 %420,6279.6 % Interest expense, net (1,613)(0.1) %9860.0 %6490.0 %2,2860.1 % Other (income) expense, net (916)(0.0) %(461)(0.0) %(9,183)(0.2) %1730.0 % Income before income taxes$227,7449.5 %$212,7009.8 %$488,53510.3 %$418,1689.6 %We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Acute Care Hospital Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2024 and our Form 10-Q for the quarter ended March 31, year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year All Acute Care Hospital Services table summarizes the results of operations for all our acute care operations during the periods presented. These amounts include: (i) our acute care results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months. Universal Health Services, Inc. Behavioral Health Care Services For the Three and Six months ended June 30, 2025 and 2024 (in thousands) (unaudited)Same Facility Basis - Behavioral Health Care Services Three months endedThree months endedSix months endedSix months ended June 30, 2025June 30, 2024June 30, 2025June 30, 2024 Amount% of NetRevenues Amount% of NetRevenues Amount% of NetRevenues Amount% of NetRevenues Net revenues$1,827,519100.0 %$1,677,876100.0 %$3,533,381100.0 %$3,294,117100.0 % Operating charges: Salaries, wages and benefits974,47653.3 %890,85553.1 %1,900,01353.8 %1,759,51153.4 % Other operating expenses330,50818.1 %307,50218.3 %651,95418.5 %621,50318.9 % Supplies expense58,1833.2 %56,7773.4 %113,5623.2 %113,4863.4 % Depreciation and amortization52,9632.9 %50,1833.0 %104,3313.0 %97,7803.0 % Lease and rental expense10,6950.6 %11,4030.7 %21,8220.6 %22,8570.7 % Subtotal-operating expenses1,426,82578.1 %1,316,72078.5 %2,791,68279.0 %2,615,13779.4 % Income from operations400,69421.9 %361,15621.5 %741,69921.0 %678,98020.6 % Interest expense, net 1,1050.1 %1,0080.1 %2,1790.1 %2,0350.1 % Other (income) expense, net (837)(0.0) %(871)(0.1) %(1,662)(0.0) %(1,547)(0.0) % Income before income taxes$400,42621.9 %$361,01921.5 %$741,18221.0 %$678,49220.6 %All Behavioral Health Care ServicesThree months endedThree months endedSix months endedSix months ended June 30, 2025June 30, 2024June 30, 2025June 30, 2024 Amount% of NetRevenuesAmount% of NetRevenues Amount% of NetRevenuesAmount% of NetRevenues Net revenues$1,880,076100.0 %$1,726,032100.0 %$3,627,725100.0 %$3,382,099100.0 % Operating charges: Salaries, wages and benefits977,15652.0 %895,49451.9 %1,905,32252.5 %1,767,69052.3 % Other operating expenses383,84120.4 %351,57920.4 %747,42520.6 %698,84720.7 % Supplies expense58,4013.1 %57,0843.3 %113,8483.1 %114,0083.4 % Depreciation and amortization53,2592.8 %50,4782.9 %104,6672.9 %98,3502.9 % Lease and rental expense10,9640.6 %11,7600.7 %22,3330.6 %23,2780.7 % Subtotal-operating expenses1,483,62178.9 %1,366,39579.2 %2,893,59579.8 %2,702,17379.9 % Income from operations396,45521.1 %359,63720.8 %734,13020.2 %679,92620.1 % Interest expense, net 1,1040.1 %1,0080.1 %2,1790.1 %2,0350.1 % Other (income) expense, net (837)(0.0) %(871)(0.1) %(1,662)(0.0) %(1,547)(0.0) % Income before income taxes$396,18821.1 %$359,50020.8 %$733,61320.2 %$679,43820.1 %We believe that providing our results on a "Same Facility" basis (which is a non-GAAP measure), which includes the operating results for facilities and businesses operated in both the current year and prior year periods, is helpful to our investors as a measure of our operating performance. Our Same Facility results also neutralize (if applicable), the effect of material items that are nonrecurring or non-operational in nature including items such as, but not limited to, reserves for various matters, settlements, legal judgments and lawsuits, cost related to extinguishment of debt, gains/losses on sales of assets and businesses, impairments of goodwill, long-lived and intangible assets and other amounts that may be reflected in the current or prior year financial statements that relate to prior periods. Our Same Facility basis results exclude from net revenues and other operating expenses, provider tax assessments incurred in each period. However, these provider tax assessments are included in net revenues and other operating expenses as reflected in the table under All Behavioral Health Care Services. The provider tax assessments had no impact on the income before income taxes as reflected on the above tables since the amounts offset between net revenues and other operating expenses. To obtain a complete understanding of our financial performance, the Same Facility results should be examined in connection with our net income as determined in accordance with GAAP and as presented herein and the condensed consolidated financial statements and notes thereto as contained in our Form 10-K for the year ended December 31, 2024 and our Form 10-Q for the quarter ended March 31, year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year All Behavioral Health Care Services table summarizes the results of operations for all our behavioral health care facilities during the periods presented. These amounts include: (i) our behavioral health results on a same facility basis, as indicated above; (ii) the impact of provider tax assessments which increased net revenues and other operating expenses but had no impact on income before income taxes, and; (iii) certain other amounts including the results of facilities acquired or opened during the last twelve months. Universal Health Services, Inc. Selected Hospital Statistics For the Three Months ended June 30, 2025 and 2024 (unaudited)AS REPORTED:ACUTEBEHAVIORAL HEALTH 6/30/256/30/24% change6/30/256/30/24% changeHospitals owned and leased29277.4 %331332-0.3 % Average licensed beds7,1126,7505.4 %24,30124,326-0.1 % Average available beds6,9406,5785.5 %24,20124,226-0.1 % Patient days410,246395,8683.6 %1,623,4581,613,6480.6 % Average daily census4,508.24,350.23.6 %17,840.217,732.40.6 % Occupancy-licensed beds63.4 %64.4 %-1.6 %73.4 %72.9 %0.7 % Occupancy-available beds65.0 %66.1 %-1.8 %73.7 %73.2 %0.7 % Admissions86,82382,7444.9 %118,974118,9120.1 % Length of stay4.74.8-2.1 %13.613.60.0 %Inpatient revenue$13,879,739$12,345,57612.4 %$3,000,362$2,774,6398.1 % Outpatient revenue9,638,3778,634,20211.6 %295,178286,2403.1 % Total patient revenue23,518,11620,979,77812.1 %3,295,5403,060,8797.7 % Other revenue285,688234,35621.9 %93,54482,19613.8 % Gross revenue23,803,80421,214,13412.2 %3,389,0843,143,0757.8 % Total deductions21,402,77019,035,44812.4 %1,509,0081,417,0436.5 % Net revenue $2,401,034$2,178,68610.2 %$1,880,076$1,726,0328.9 %SAME FACILITY:ACUTEBEHAVIORAL HEALTH 6/30/256/30/24% change6/30/256/30/24% changeHospitals owned and leased27270.0 %3353350.0 % Average licensed beds6,8206,7501.0 %24,13023,8611.1 % Average available beds6,6486,5781.1 %24,03023,7611.1 % Patient days400,910395,8681.3 %1,612,9481,590,2521.4 % Average daily census4,405.64,350.21.3 %17,724.717,475.31.4 % Occupancy-licensed beds64.6 %64.4 %0.2 %73.5 %73.2 %0.3 % Occupancy-available beds66.3 %66.1 %0.2 %73.8 %73.5 %0.3 % Admissions84,52982,7442.2 %118,170117,4230.6 % Length of stay4.74.8-2.1 %13.613.50.7 %Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year presentation. Universal Health Services, Inc. Selected Hospital Statistics For the Six Months ended June 30, 2025 and 2024 (unaudited)AS REPORTED:ACUTEBEHAVIORAL HEALTH 6/30/256/30/24% change6/30/256/30/24% changeHospitals owned and leased29277.4 %3383321.8 % Average licensed beds6,9836,7044.2 %24,26324,353-0.4 % Average available beds6,8116,5324.3 %24,16324,253-0.4 % Patient days830,935811,1922.4 %3,220,3523,222,638-0.1 % Average daily census4,590.84,457.13.0 %17,792.017,706.80.5 % Occupancy-licensed beds65.7 %66.5 %-1.1 %73.3 %72.7 %0.9 % Occupancy-available beds67.4 %68.2 %-1.2 %73.6 %73.0 %0.9 % Admissions173,475166,3254.3 %236,762238,842-0.9 % Length of stay4.84.9-2.0 %13.613.50.7 %Inpatient revenue$28,181,348$25,255,67811.6 %$5,861,932$5,529,3236.0 % Outpatient revenue18,965,66116,980,49111.7 %569,724564,7680.9 % Total patient revenue47,147,00942,236,16911.6 %6,431,6566,094,0915.5 % Other revenue566,125480,60717.8 %181,929162,40712.0 % Gross revenue47,713,13442,716,77611.7 %6,613,5856,256,4985.7 % Total deductions42,962,87138,353,00912.0 %2,985,8602,874,3993.9 % Net revenue $4,750,263$4,363,7678.9 %$3,627,725$3,382,0997.3 %SAME FACILITY:ACUTEBEHAVIORAL HEALTH 6/30/256/30/24% change6/30/256/30/24% changeHospitals owned and leased27270.0 %3353350.0 % Average licensed beds6,7626,7040.9 %24,11423,8880.9 % Average available beds6,5906,5320.9 %24,01423,7881.0 % Patient days815,640811,1920.5 %3,199,6463,174,4990.8 % Average daily census4,506.34,457.11.1 %17,677.617,442.31.3 % Occupancy-licensed beds66.6 %66.5 %0.2 %73.3 %73.0 %0.4 % Occupancy-available beds68.4 %68.2 %0.2 %73.6 %73.3 %0.4 % Admissions169,773166,3252.1 %235,245235,831-0.2 % Length of stay4.84.9-2.0 %13.613.50.7 %Prior year amounts related to certain facilities previously included in our Behavioral Health Care Services' results have been reclassified into our Acute Care Hospital Services' results as of May 1, 2024 to conform with current year presentation. Universal Health Services, Non-GAAP Disclosures2025 Revised Operating Results Forecast(in thousands, except per share amounts)Revised Forecast For The Year Ending December 31, 2025 % Net% Net LowrevenuesHighrevenuesNet revenues $17,096,000$17,312,000 Adjusted net income attributable to UHS (a)$1,298,461$1,363,549 Depreciation and amortization 622,675622,675 Interest expense 147,155147,155 Other (income) expense, net (18,408)(18,408) Provision for income taxes 407,795428,237Adjusted EBITDA net of NCI (b) $2,457,67814.4 %$2,543,20814.7 % Adjusted net income attributable to UHS, per diluted share (a) $20.00$21.00 Shares used in computing diluted earnings per share64,92264,922 (a) Adjusted net income attributable to UHS/per diluted share exclude the following items because we do not believe we can forecast these items with sufficient accuracy. Such items include: the impact of future items, if applicable, that are nonrecurring or non-operational in nature including items such as pre-tax unrealized gains/losses resulting from changes in the market value of shares of certain equity securities, the impact of ASU 2016-09, and other potential material items including, but not limited to, impairments of goodwill, long-lived and intangible assets, reserves for various matters including settlements, legal judgments and lawsuits, costs related to extinguishment of debt, gains/losses on sales of assets and businesses, potential impacts of non-ordinary acquisitions, divestitures, joint ventures or other strategic transactions, other amounts that may be reflected in the current or prior year financial statements that relate to prior periods, and the impact of share repurchases that differ from our forecasted assumptions. Adjusted net income attributable to UHS/per diluted share is also subject to certain conditions including those as set forth in General Information, Forward-Looking Statements and Risk Factors and Non-GAAP Financial Measures.(b) Adjusted EBITDA net of NCI is a non-GAAP financial measure and should not be considered a measure of financial performance under GAAP. We believe Adjusted EBITDA net of NCI is helpful to our investors as a measure of operating performance. View original content: SOURCE Universal Health Services, Inc. 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
Associated Press
16-05-2025
- Business
- Associated Press
ATA Creativity Global Reports Q1 2025 Financial Results
Reports Q1 2025 Results with Net Revenues and Gross Profit Increases of 15.9% Respectively, as Compared to Q1 2024 Conference Call Scheduled for Friday, May 16, at 9:00 a.m. Eastern Time (Friday, May 16, at 9:00 p.m. Beijing Time) with Accompanying Audio and Slide Webcast BEIJING, CHINA / ACCESS Newswire / May 16, 2025 / ATA Creativity Global ('ACG' or the 'Company'), (Nasdaq:AACG), an international educational services company focused on providing quality learning experiences that cultivate and enhance students' creativity, today announced preliminary unaudited financial results for the first quarter ('Q1 2025") ended March 31, 2025. All amounts presented in U.S. dollars ($) in this news release are based on a conversion rate of RMB7.2567 to $1.00 for reporting period ended March 31, 2025. Q1 2025 Financial Highlights Q1 2025 Operational Highlights The following is a summary of the credit hours delivered for ACG's portfolio training programs for Q1 2025, compared to those for the prior-year period: Management Commentary Mr. Kevin Ma, Chairman and CEO of ACG, stated, 'We are pleased with the approximately 16% increase in both net revenues and gross profits in Q1 2025, driven by increased contribution from our portfolio training and research-based learning services, as we delivered more services and hosted a variety of research-based learning projects during the quarter. Despite normalized student enrollment rates during Q1 2025 compared to the same periods of 2024 and 2023, total credit hours delivered increased by 5.8%, driven by a 15.5% rise in credit hours delivered for our project-based programs. Higher net revenues and slightly reduced operating expenses contributed to improved bottom-line results during the quarter as compared to Q1 2024.' Mr. Ma continued, 'In Q1 2025, we continued to launch new research-based projects and organized multiple in-person and online classes. In-person projects included a themed camp to Hainan Province,an AI training camp at Alibaba, tours to the United States and Japan, and a Milan Fashion Week project in Italy, accommodating more than 100 students in total. Apart from our usual Master Class projects, which were held in an online group class form, we also delivered a creative art therapy training program, providing insights into art therapy through practical case sharing in interactive live online sessions. At the same time, ACG students continued to report favorable admission results, with offer letters and scholarships received from Ivy League and other reputable colleges around the world. Due to our continued investments and focus on providing state-of-the-art educational services, we remain a trusted partner to our growing student population in their pursuit of overseas arts education.' Guidance for FY 2025 ACG expects to report total net revenues of between RMB276 million and RMB281 million for the year ending December 31, 2025, which represents a year-over-year increase of around 3% to 5%. This guidance assumption is based on the Company's existing business, initiatives underway for the year ending December 31, 2025 and the current and preliminary view of existing domestic and international market conditions, which are subject to change. Mr. Jun Zhang, President of ACG, added, 'We anticipate ACG's core portfolio training services and all other services designed to help students create a compelling application portfolio to continue to expand in 2025. In addition to the regular Master Classes in line for Q2 2025, we have an exciting pipeline of research-based learning projects for the summer, which are expected to generate meaningful net revenues. Furthermore, we have expanded our international partnerships with colleges and universities beyond the U.S. and the U.K., and have observed a growing interest among students in applying for creative arts programs in Europe, Japan and Singapore.' Mr. Zhang continued, 'We remain focused on driving organic expansion, controlling expenses and improving overall operational efficiency, as we have strategically allocated marketing resources to higher-performing campus locations, aiming to increase classroom utilization, while at the same time providing higher-value programs. We are helping students complete their portfolio creation projects more efficiently through mindful planning and intensified coaching. The variety of new project-based programs we are offering are gaining traction, as we are fostering creative thinking via an interactive learning environment and providing flexibility as many of these programs can be completed in-person and / or online. We are enthusiastic about China's creative arts education market, and our goal is to expand our student population by leveraging our existing teaching resources, and also introducing new programs to older adults and younger generation interested in art studies, workshops and themed travels. We believe ACG's long-term domestic and international partnership base, our competitive and highly experienced teaching team, and the investments we have made and continue to make in new programs, allow us to stand out from our competitors.' Conference Call and Webcast Information (With Accompanying Presentation) ACG will host a conference call at 9:00 a.m. Eastern Time on Friday, May 16 (9:00 p.m. Beijing Time on Friday, May 16), during which management will discuss Q1 2025 results. To participate in the conference call, please use the following dial-in numbers about 10 minutes prior to the scheduled conference call time: A simultaneous audio webcast including accompanying slides may be accessed via the following link: or via the investor relations section of the Company's website For those unable to listen to the live webcast, the replay will be available on the Company's website shortly after the conclusion of the call. Q1 2025 Financial Review - GAAP Results ACG's total net revenues for Q1 2025 of RMB55.8 million (or $7.7 million), increased 15.9% as compared to RMB48.1 million in Q1 2024, primarily due to increased revenue contributions from portfolio training programs and research-based learning services. Specifically: Gross profit for Q1 2025 of RMB25.4 million (or $3.5 million) increased 15.9%, from RMB21.9 million in Q1 2024, mainly as a result of higher net revenues. Gross margin remained unchanged at 45.5%, compared to the prior-year period. Total operating expenses for Q1 2025 were RMB42.2 million (or $5.8 million), representing a slight decrease of 3.2% from RMB43.6 million in Q1 2024, while as a percentage of net revenues, the total operating expenses decreased to 75.6%, compared to 90.6% in Q1 2024. The slight decrease in total operating expenses for Q1 2025 was mainly related to lower selling expenses and research and development expenses, and the collection of previously impaired loans and other receivables, offset by increased general & administrative expenses related to professional fees and development of new projects. Specifically, for Q1 2025: Loss from operations for Q1 2025 decreased to RMB16.8 million (or $2.3 million), as compared to loss from operations of RMB21.7 million in Q1 2024, mainly as a result of higher net revenues and operating leverage. Similarly, net loss attributable to ACG for Q1 2025 was RMB13.3 million (or $1.8 million), as compared to net loss attributable to ACG of RMB17.9 million in Q1 2024. Basic and diluted losses per common share attributable to ACG for Q1 2025 were RMB0.21 (or $0.03), compared to basic and diluted losses per common share of RMB0.29 for Q1 2024. Non-GAAP Measures Adjusted net loss attributable to ACG for Q1 2025, which excludes share-based compensation expense and foreign currency exchange losses, net, was RMB13.3 million (or $1.8 million), compared to adjusted net loss of RMB16.9 million in Q1 2024. Basic and diluted losses per common share attributable to ACG excluding share-based compensation expense and foreign currency exchange losses, net for Q1 2025, were RMB0.21 (or $0.03). Basic and diluted losses per ADS attributable to ACG excluding share-based compensation expense and foreign currency exchange losses, net for Q1 2025 were RMB0.42 (or $0.06). Please see the note about non-GAAP measures and the reconciliation table at the end of this press release. Other Data The number of weighted average ADSs used to calculate basic and diluted losses per ADS for Q1 2025 were both 31.6 million. Each ADS represents two common shares. Balance Sheet Highlights As of March 31, 2025, ACG's cash and cash equivalents were RMB39.4million (or $5.4 million), working capital deficit was RMB298.5 million (or $41.1 million), and total shareholders' equity was RMB66.4million (or $9.1 million); compared to cash and cash equivalents of RMB36.5 million, working capital deficit of RMB287.9 million, and total shareholders' equity of RMB79.6 million, respectively, as of December 31, 2024. About ATA Creativity Global ATA Creativity Global is an international educational services company focused on providing quality learning experiences that cultivate and enhance students' creativity. ATA Creativity Global offers a wide range of education services consisting primarily of portfolio training, research-based learning services, overseas study counselling and other educational services through its training center network. For more information, please visit ACG's website at Cautionary Note Regarding Forward-looking Statements This announcement contains 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, and as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terms such as 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'forecast,' 'future,' 'intend,' 'look forward to,' 'outlook,' 'guidance,' 'plan,' 'should,' 'will,' and similar terms and include, among other things, statements regarding ACG's future growth and results of operations; ACG's plans for mergers and acquisitions generally; ACG's growth strategy, anticipated growth prospects and subsequent business activities; ACG's 2025 guidance; market demand for, and market acceptance and competitiveness of, ACG's portfolio training programs and other education services. The factors that could cause the Company's actual financial and operating results to differ from what the Company currently anticipates may include its ability to develop and create content that could accommodate needs of potential students, its ability to provide effective creative related international education services and control sales and marketing expenses, its recognition in the marketplace for services it delivered and branding it established, its ability to maintain market share amid increasing competition, its ability to identify and execute on M&A opportunities within the education sector and its ability to integrate the acquired business, the economy of China, uncertainties with respect to China's legal and regulatory environments, the impact of the political tensions between the United States and China or other international tensions, and the impact of actual or potential international trade or military conflicts, and other factors stated in the Company's filings with the U.S. Securities and Exchange Commission ('SEC'). The financial information contained in this release should be read in conjunction with the consolidated financial statements and related notes included in the Company's annual report on Form 20-F for its fiscal year ended December 31, 2024, and other filings that ACG has made with the SEC. The filings are available on the SEC's website at and at ACG's website at For additional information on the risk factors that could adversely affect the Company's business, financial conditions, results of operations, and prospects, please see the 'Risk Factors' section of the Company's Form 20-F for the fiscal year ended December 31, 2024. The forward-looking statements in this release involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates, and projections about ACG and the markets in which it operates. The Company undertakes no obligation to update forward-looking statements, which speak only as of the date of this release, to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that its expectations and assumptions expressed in these forward-looking statements are reasonable, the Company cannot assure you that its expectations and assumptions will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Currency Convenience Translation The Company's financial information is stated in Renminbi ('RMB'), the currency of the People's Republic of China. The translations of RMB amounts for the quarter ended March 31, 2025, into U.S. dollars are included solely for the convenience of readers and have been made at the rate of RMB7.2567 to $1.00, the noon buying rate as of March 31, 2025, in New York for cable transfers in RMB per U.S. dollar as set forth in the H.10 weekly statistical release of the Federal Reserve Board. Such translations should not be construed as representations that RMB amounts could be converted into U.S. dollars at that rate or any other rate, or to be the amounts that would have been reported under U.S. generally accepted accounting principles ('GAAP'). About Non-GAAP Financial Measures To supplement ACG's consolidated financial information presented in accordance with U.S. GAAP, ACG uses the following non-GAAP financial measures: net income (loss) excluding share-based compensation expense and foreign currency exchange gain or loss, and basic and diluted earnings (losses) per common share and ADS excluding share-based compensation expense and foreign currency exchange gain or loss. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. ACG believes these non-GAAP financial measures provide meaningful supplemental information about its performance by excluding share-based compensation expense and foreign currency exchange gain or loss, which may not be indicative of its operating performance. ACG believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to ACG's historical performance. ACG computes its non-GAAP financial measures using a consistent method from period to period. ACG believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP net income (loss) excluding share-based compensation expense and foreign currency exchange gain or loss and basic and diluted earnings (losses) per common share and per ADS excluding share-based compensation expense and foreign currency exchange gain or loss is that share-based compensation charges and foreign currency exchange gain or loss have been, and are expected to continue to be for the foreseeable future, a significant recurring expense in ACG's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The table captioned 'Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures' shown at the end of this news release has more details on the reconciliations between GAAP financial measures that are most directly comparable to the non-GAAP financial measures used by ACG. For more information on our company, please contact the following individuals: ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS ATA CREATIVITY GLOBAL AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) RECONCILIATIONS OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES SOURCE: ATA Creativity Global press release
