Financial Performance - Net income attributable to common stockholders was $0.33 per share for the first quarter of 2025[247]. - Earnings available for distribution was $0.20 per share for the first quarter of 2025, indicating continued momentum in portfolio growth and income generation[247]. - Net income attributable to the Company's common stockholders for Q1 2025 was $30,285,000, with a basic earnings per share of $0.33[269]. - The Company reported a net income attributable to common stockholders of $30.285 million for the three months ended March 31, 2025, compared to a loss of $68.340 million in 2024, an improvement of $98.625 million[282]. - Basic earnings per common share improved to $0.33 in 2025 from a loss of $0.75 in 2024, reflecting a change of $1.08[282]. - Economic return on book value for Q1 2025 was 3.13%, while the economic return on adjusted book value was 2.71%[269]. Investment Portfolio - The total investment portfolio reached $8.26 billion as of March 31, 2025, after accounting for acquisitions and repayments[242]. - The fair value of residential loans increased to $2.95 billion as of March 31, 2025, from $2.88 billion at the end of 2024[242]. - Agency RMBS holdings grew to $4.56 billion as of March 31, 2025, up from $3.14 billion at the end of 2024[242]. - The Company allocated $3,913,268,000 to residential loans and $4,646,812,000 to investment securities available for sale as of March 31, 2025[276]. - The total fair value of residential loan securitizations increased to $1.554 billion as of March 31, 2025, compared to $1.253 billion on December 31, 2024, representing a growth of approximately 24%[348]. - The investment securities portfolio's fair value increased to $4.794 billion as of March 31, 2025, from $3.977 billion on December 31, 2024, marking an increase of approximately 20.5%[350]. Interest Income and Expenses - Interest income increased by 55% and adjusted interest income increased by more than 57% for the first quarter of 2025 compared to the same period in 2024[247]. - Interest income for the same period was $129,734,000, while interest expense was $96,636,000, resulting in a net interest income of $33,098,000[269]. - The yield on average interest-earning assets was 6.47%, and the net interest spread was 1.32%[269]. - Adjusted interest income for the three months ended March 31, 2025, increased by approximately $44.7 million to $122.770 million compared to $78.091 million in the same period of 2024[313]. - Adjusted interest expense rose by approximately $34.7 million to $86.560 million for the three months ended March 31, 2025, compared to $51.896 million in 2024[314]. - Adjusted net interest income for the three months ended March 31, 2025, was $36.210 million, up from $26.195 million in 2024, reflecting a year-over-year increase of 38.3%[315]. Asset Acquisition and Disposition - The company acquired approximately $4.1 billion of assets during the year ending December 31, 2024, and an additional $1.9 billion during the three months ended March 31, 2025[246][247]. - The company is repositioning its business by opportunistically disposing of joint venture equity investments in multi-family properties[243]. - The company expects to continue opportunistically disposing of assets from its multi-family portfolio while focusing on investments in the residential housing sector[251]. - The company has maintained its qualification as a REIT and intends to continue compliance with the Internal Revenue Code provisions[245]. Economic and Market Conditions - The U.S. GDP contracted by 0.3% in the first quarter of 2025, marking the first quarter of contraction since Q1 2022, compared to a 2.4% growth in Q4 2024[255]. - The unemployment rate in the U.S. was 4.2% at the end of March 2025, slightly up from 4.1% at the end of December 2024, with 7.1 million unemployed persons[256]. - Effective rents for professionally managed apartments grew 1.1% for the twelve months ended March 2025, but there were significant regional disparities in rent growth[260]. - Investment grade credit spreads widened by 15 basis points and high-yield spreads by 63 basis points during the first quarter of 2025[261]. Debt and Financing - The Company completed the issuance of $82.5 million in aggregate principal amount of 9.125% Senior Notes due 2030, with net proceeds of approximately $79.3 million[272]. - The Company had $4.1 billion outstanding under repurchase agreements as of March 31, 2025, with a weighted average interest rate of 4.49%[354][355]. - The company had commitments to fund up to $184.8 million of additional advances on existing business purpose loans as of March 31, 2025[424]. - The common stock repurchase program had $189.7 million remaining available as of March 31, 2025, and it also expires on March 31, 2026[419]. Joint Ventures and Equity Investments - The Company’s net equity in consolidated joint venture equity investments totaled $155.9 million as of March 31, 2025, compared to $153.7 million on December 31, 2024[368]. - The net joint venture equity investments in consolidated multi-family properties not in disposal group held for sale totaled $136.0 million as of March 31, 2025[373]. - The company recognized no joint venture equity investments reclassified from disposal group held for sale in Q1 2025, compared to a loss of $14,636,000 in Q1 2024[294]. Risk Management - The company utilizes interest rate caps and swaps to manage interest rate risk in its portfolio[431]. - Changes in interest rates could impact adjusted net interest income significantly, with a +200 basis point change resulting in a decrease of $90,470 thousand[433]. - The company may be required to enter into interest rate cap contracts as part of its financing arrangements[416].

Financial Performance - Rayonier Inc. reported sales of $82,922 thousand for the three months ended March 31, 2025, a decrease of 27.1% compared to $113,704 thousand in the same period of 2024 [18]. - The operating income for the first quarter of 2025 was $59 thousand, significantly down from $8,632 thousand in Q1 2024 [18]. - The net loss attributable to Rayonier Inc. was $3,424 thousand for Q1 2025, compared to a net income of $1,357 thousand in Q1 2024, marking a shift in performance [18]. - Rayonier Inc. reported a comprehensive loss of $7,300 thousand for Q1 2025, compared to a comprehensive loss of $1,153 thousand in Q1 2024 [18]. - Rayonier Inc. reported a basic loss per share of $0.02 for Q1 2025, compared to earnings of $0.01 per share in Q1 2024 [18]. - For the three months ended March 31, 2025, Rayonier reported a net loss of $3,085,000 compared to a net income of $2,306,000 for the same period in 2024 [29]. - Cash provided by operating activities was $27,699,000 for Q1 2025, down from $52,298,000 in Q1 2024, reflecting a decline of about 47% [29]. - Rayonier's comprehensive loss attributable to unitholders was $7,398,000 in Q1 2025, compared to a comprehensive loss of $1,170,000 in Q1 2024 [35]. - The company reported a basic loss per unit attributable to continuing operations of $0.04 for Q1 2025, compared to a loss of $0.03 for Q1 2024 [35]. - The company reported a loss from continuing operations before income taxes of $5,501 for the three months ended March 31, 2025 [84]. Assets and Liabilities - Total current assets increased to $767,388 thousand as of March 31, 2025, from $436,893 thousand at the end of 2024, primarily due to an increase in current assets of discontinued operations [20]. - Total assets decreased to $3,351,353 thousand as of March 31, 2025, down from $3,474,419 thousand at December 31, 2024 [20]. - The company’s retained earnings decreased to $204,180 thousand as of March 31, 2025, from $257,254 thousand at the end of 2024 [20]. - The balance of cash and cash equivalents decreased to $216,242 thousand as of March 31, 2025, from $303,065 thousand as of December 31, 2024, a decline of 28.7% [37]. - Total liabilities of the New Zealand operations increased to $227,991 thousand as of March 31, 2025, from $218,176 thousand as of December 31, 2024, a rise of 4.0% [66]. - Current liabilities rose to $49.33 million in Q1 2025, compared to $47.34 million in Q4 2024, reflecting a 4.2% increase [66]. Capital Expenditures and Investments - Rayonier's capital expenditures from continuing operations were $12,023,000 in Q1 2025, down from $15,260,000 in Q1 2024, indicating a reduction of approximately 21% [29]. - Capital expenditures for the three months ended March 31, 2025, were $12,023, down from $15,260 in the same period of 2024, representing a decline of approximately 21.5% [78]. - Capital expenditures for New Zealand operations decreased to $2.65 million in Q1 2025, down 26.4% from $3.61 million in Q1 2024 [66]. Dividends and Shareholder Returns - Rayonier Inc. issued a special dividend of $1.80 per common share, resulting in the issuance of 7,560,983 common shares [22][23]. - Dividends paid on common shares increased to $110,442,000 in Q1 2025 from $72,258,000 in Q1 2024, marking an increase of approximately 53% [29]. - Distributions on units for the three months ended March 31, 2025, totaled $111,905 thousand, compared to $73,343 thousand in 2024, an increase of 52.6% [43]. Foreign Operations - Rayonier's New Zealand operations generated sales of $56,760 thousand in Q1 2025, up from $54,392 thousand in Q1 2024, representing a 4.5% increase [63]. - Operating income from discontinued operations in New Zealand was $4,549 thousand in Q1 2025, down from $7,578 thousand in Q1 2024, a decline of 40.4% [63]. - The company reported net income from discontinued operations attributable to Rayonier Inc. of $2,094 thousand in Q1 2025, compared to $5,792 thousand in Q1 2024, a decrease of 63.8% [63]. - Rayonier entered into a purchase and sale agreement to sell its 77% interest in New Zealand operations for $710 million, expected to close in 2025 [61]. Debt and Financing - The company’s long-term debt remained stable at $1,044,635 thousand as of March 31, 2025, compared to $1,044,410 thousand at the end of 2024 [20]. - Total principal debt as of March 31, 2025, was $1,050,000,000, with total long-term debt amounting to $1,044,635,000 after accounting for unamortized discounts and deferred financing costs [105]. - Rayonier Inc. had available borrowings of $293.0 million under its Revolving Credit Facility as of March 31, 2025 [108]. - The company maintained a covenant EBITDA to consolidated interest expense ratio of 7.2 to 1, significantly exceeding the requirement of 2.5 to 1 [111]. - The debt to covenant net worth plus covenant debt ratio was 36%, well below the maximum requirement of 65% [111]. Other Financial Metrics - Adjusted EBITDA for the total company was $27,061 thousand for Q1 2025, reflecting the performance across all segments [74]. - Adjusted EBITDA for the three months ended March 31, 2025, was $44,648, compared to $44,801 in the same period of 2024, indicating a slight decrease of 0.3% [84]. - The net income for the three months ended March 31, 2025, was $2,306, compared to a loss of $4,510 in the same period of 2024 [84]. - The company reported a foreign currency translation adjustment of $3,633 thousand for the three months ended March 31, 2025 [39]. - The company’s effective tax rate for the three months ended March 31, 2025, was -5.5%, significantly lower than the 18.0% rate for the same period in 2024 [151].

Financial Performance - Total revenues for Q1 2025 were $202.6 million, a decrease of 9.5% from $223.1 million in Q1 2024[14] - Net income for Q1 2025 was $12.8 million, a significant drop of 54.7% compared to $28.3 million in Q1 2024[14] - Net premiums earned decreased to $183.0 million in Q1 2025, down from $184.9 million in Q1 2024, reflecting a decline of 1.0%[14] - Total expenses for the three months ended March 31, 2025, were $186.7 million, compared to $187.8 million for the same period in 2024, showing a slight decrease of 0.6%[103][104] - Net income for the three months ended March 31, 2025, was $12.8 million, a decrease of 54.8% compared to $28.3 million for the same period in 2024[21] - The combined ratio for the Insurance Operations segment was 102.0% for Q1 2025, compared to 101.6% for Q1 2024, indicating a slight deterioration in underwriting performance[103][104] Assets and Liabilities - Total assets increased to $3,556.9 million as of March 31, 2025, compared to $3,541.3 million as of December 31, 2024, representing a growth of 0.4%[12] - Total liabilities rose to $2,481.2 million as of March 31, 2025, up from $2,472.6 million at the end of 2024, indicating a 0.3% increase[12] - The total stockholders' equity increased to $1,075.7 million as of March 31, 2025, from $1,068.7 million at the end of 2024, a rise of 0.8%[12] Cash and Investments - Cash and cash equivalents increased to $100.4 million as of March 31, 2025, compared to $68.3 million as of December 31, 2024, reflecting a growth of 47.0%[12] - The company reported a net cash provided by investing activities of $46.1 million, a turnaround from a net cash used of $97.7 million in the previous year[21] - Total cash, cash equivalents, and restricted cash at the end of the period was $100.6 million, up from $68.5 million at the beginning of the period[22] - The investment portfolio as of March 31, 2025, had a total fair value of $2,335.9 million, with a weighted average book yield of 4.5%[186] - The fixed maturity securities portfolio had a weighted average quality rating of "A+" as of March 31, 2025[182] Losses and Expenses - Losses and loss adjustment expenses for Q1 2025 were $120.7 million, up from $116.5 million in Q1 2024, marking an increase of 2.9%[14] - Total net losses and LAE incurred during the three months ended March 31, 2025, were $122.3 million, compared to $118.6 million for the same period in 2024[78] - Current accident year losses and LAE increased to $121.0 million for the three months ended March 31, 2025, compared to $118.7 million for the same period in 2024, reflecting a rise in loss trends[133] Dividends and Stockholder Equity - The company declared cash dividends of $0.30 per common share in Q1 2025, compared to $0.28 in Q1 2024, representing a 7.1% increase[14] - The adjusted stockholders' equity as of March 31, 2025, was $1,228.8 million, compared to $1,213.0 million as of March 31, 2024, indicating a growth of 1.3%[103][104] Investment Gains and Losses - The company reported unrealized AFS investment gains of $21.1 million for Q1 2025, compared to losses of $11.6 million in Q1 2024[14] - The company recorded net realized and unrealized gains on investments of $12.8 million, contrasting with losses of $11.4 million in the prior year[21] - The company reported unrealized gains of $16.7 million and unrealized losses of $93.6 million on its available-for-sale investments as of March 31, 2025[48] Operational Metrics - Gross premiums written for the Insurance Operations segment increased to $212.1 million in Q1 2025, up from $210.9 million in Q1 2024, representing a growth of 0.6%[103][104] - The number of in-force policies increased to 133,121 as of March 31, 2025, compared to 130,767 at December 31, 2024[122] - The company continues to invest in technology to enhance data analytic capabilities and reduce operating costs over the long term[115] Tax and Regulatory - The effective tax rate for the three months ending March 31, 2025, was 19.5%, compared to 19.8% for the same period in 2024[75] - Income tax expense decreased to $3.1 million in Q1 2025 from $7.0 million in Q1 2024, with effective tax rates of 19.5% and 19.8%, respectively[149] Share Repurchase and Commitments - The company repurchased 406,101 shares for $20.2 million during Q1 2025[173] - As of March 31, 2025, the company had unfunded investment commitments totaling $14.0 million[177]

Financial Performance - Net sales for Q1 2025 reached $809.3 million, a 10.5% increase from $732.1 million in Q1 2024[95] - The Systems Protection segment generated net sales of $508.2 million, reflecting a 15.5% increase compared to $439.9 million in the prior year[103] - Electrical Connections net sales increased by 3.0% to $301.1 million in Q1 2025 from $292.2 million in Q1 2024, driven by organic growth of 3.9%[109] - Organic growth in net sales was 1.6%, while acquisition-related growth accounted for 9.8% of the total sales increase[96] Income and Expenses - Income from discontinued operations, primarily from the sale of the Thermal Management business, was $273.7 million, resulting in a gain of $433.9 million after tax expenses[100] - The effective tax rate increased to 22.0% in Q1 2025, up from 21.5% in Q1 2024, due to higher earnings in jurisdictions with elevated tax rates[99] - Selling, general and administrative expenses rose to 20.5% of net sales, an increase of 1.0 percentage point from the previous year[95] - Gross profit margin decreased by 0.9 percentage points to 38.8% in Q1 2025 compared to 39.7% in Q1 2024[95] Acquisitions - The company completed the acquisition of Trachte for approximately $687.5 million and the Electrical Products Group for $975.0 million, enhancing its Systems Protection segment[90][93] - The acquisition of Trachte contributed $71.4 million in sales during Q1 2025, with organic sales growth from the infrastructure business at approximately 5.0%[96] - Organic sales growth contributed approximately 5.0% from the infrastructure business, with a total of $71.4 million in sales attributed to the Trachte acquisition[110] Cash Flow and Liquidity - The company reported net cash provided by operating activities of $63.9 million in Q1 2025, compared to $48.6 million in Q1 2024, reflecting an increase in net income[116][117] - Free cash flow for continuing operations increased to $44.4 million in Q1 2025, up from $33.6 million in Q1 2024, representing a 32.8% growth[139] - As of March 31, 2025, the company had $1,343.0 million in cash on hand, with $58.6 million held in jurisdictions with limited repatriation capabilities[114] - Net cash used for investing activities from continuing operations was $15.7 million in Q1 2025, primarily for capital expenditures of $21.1 million[118] - The company repaid $483.6 million in financing activities during Q1 2025, including $392.5 million in long-term debt repayments[121] Operational Challenges - The company anticipates continued inflationary cost increases and supply chain challenges throughout 2025, impacting operational results[94] - The company experienced a 1.5% organic sales decline in its commercial & residential business, partially offsetting gains in other segments[112] Segment Performance - Segment income for Electrical Connections decreased slightly by 0.1% to $85.1 million in Q1 2025, with segment income as a percentage of net sales dropping from 29.2% to 28.3%[108] Capital Expenditures - Capital expenditures increased to $21.1 million in Q1 2025 from $15.3 million in Q1 2024, reflecting a 37.9% rise[139] Compliance and Risk - As of March 31, 2025, the company was in compliance with all financial covenants in its debt agreements, indicating a solid liquidity position[132] - Market risk has remained stable with no material changes during the quarter ended March 31, 2025[142] - There have been no material changes to critical accounting policies and estimates from the previous disclosures in the 2024 Annual Report[141]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-14965 The Goldman Sachs Group, Inc. (Exact name of registrant as specified in its charter) Delaware 13-4019460 (State or other jurisdictio ...

Financial Position - As of March 31, 2025, the company reported total assets of $27,644,637,000, a decrease of $415,693,000 from $28,060,330,000 at September 30, 2024[221]. - Cash and cash equivalents amounted to $1,231,461,000 as of March 31, 2025, providing management with flexibility in managing interest rate risk[222]. - Total borrowings decreased to $2,763,758,000 as of March 31, 2025, down from $3,267,589,000 at September 30, 2024[227]. - Cash and cash equivalents decreased by $1,149,641,000, or 48.3%, to $1,231,461,000 at March 31, 2025[236]. - The Company's shareholders' equity increased by $32,320,000 to $3,032,620,000, or 10.97% of total assets, as of March 31, 2025[228]. - The ratio of tangible capital to tangible assets was 9.51% as of March 31, 2025, indicating a strong equity position[228]. Loan and Asset Performance - The average balance of loans receivable increased to $20,918,986,000 for the three months ended March 31, 2025, compared to $19,696,515,000 for the same period in 2024[219]. - Total gross loans reached $21,122,710,000 as of March 31, 2025, with significant contributions from Washington ($4,867,340,000) and California ($2,979,107,000)[245]. - Loans receivable increased by $3,647,000 to $20,920,001,000 at March 31, 2025, compared to $20,916,354,000 at September 30, 2024[240]. - Non-performing assets decreased by $6,534,000 to $70,884,000, representing 0.26% of total assets, down from 0.28%[249]. - Non-accrual loans totaled $59,886,000, with the largest share in commercial real estate at $29,320,000, accounting for 49.0% of non-accrual loans[251]. - Loans less than 90 days delinquent amounted to $506,938,000, which, if classified as non-performing, would increase the non-performing assets ratio to 2.09%[253]. - The company’s single-family residential loans accounted for 39.1% of total gross loans, indicating a strong focus on this segment[246]. Income and Expenses - The company recorded net income of $56,252,000 for the three months ended March 31, 2025, compared to $15,888,000 for the same period last year, reflecting significant growth due to the effects of the merger[263]. - Net interest income for the three months ended March 31, 2025, was $160,910,000, an increase of $2,313,000 from the prior year, with a net interest margin of 2.55% compared to 2.73% in the same quarter last year[264]. - Non-interest income for the three months ended March 31, 2025, was $18,881,000, an increase of $5,489,000 from the same period last year, primarily due to higher prepayment fees and commission income[270]. - Non-interest expense decreased to $104,832,000 for the three months ended March 31, 2025, down by $28,880,000 from $133,712,000 in the prior year quarter, largely due to reduced merger-related expenses[271]. Capital and Risk Management - The common equity tier 1 capital ratio for the Company was 11.51% as of March 31, 2025, exceeding the minimum requirement of 4.50%[235]. - The total risk-based capital ratio for the Company was 14.49% as of March 31, 2025, above the minimum requirement of 8.00%[235]. - The provision for credit losses was $2,750,000 for the three months ended March 31, 2025, compared to $16,000,000 for the same period last year, reflecting a stable loan receivable balance[269]. - Total allowance for credit losses decreased to $222,709,000 as of March 31, 2025, from $225,253,000 as of September 30, 2024, representing a decline of 1.1%[257]. - The company’s allowance for credit losses composition reflects a proactive approach to managing credit risk amid changing market conditions[256]. Market and Operational Insights - The net interest margin for the quarter ended March 31, 2025, was 2.55%, down from 2.73% for the same quarter in 2024[216]. - The yield on interest-earning assets decreased by 18 basis points to 5.32% for the quarter ended March 31, 2025[216]. - The conditional payment rate (CPR) for single-family mortgages increased to 8.10% as of March 31, 2025, up from 4.80% the previous year[215]. - Commercial loan originations accounted for 74% of total originations during the period[240]. - The effective tax rate for the three months ended March 31, 2025, was 21.88%, down from 24.21% for the same period last year[273]. Legal and Regulatory Matters - There have been no material changes in the Company's quantitative and qualitative information about market risk since September 30, 2024[278]. - No changes in the Company's internal control over financial reporting that have materially affected, or are likely to materially affect, such controls[280]. - The Company and its consolidated subsidiaries are involved in legal proceedings that are believed to be immaterial to the financial statements[282].

Financial Performance - Revenue for the three months ended March 31, 2025, was $69,162,000, representing a 55.5% increase from $44,539,000 in the same period of 2024[15] - Gross profit for the same period was $44,161,000, up from $25,034,000, indicating a gross margin improvement[15] - Net loss for Q1 2025 was $24,737,000, a slight improvement compared to a net loss of $25,957,000 in Q1 2024[15] - Total stock-based compensation recognized for the three months ended March 31, 2025, was $10.1 million, compared to $6.3 million for the same period in 2024, indicating a year-over-year increase of approximately 61.5%[45] - U.S. revenue accounted for 87% of total revenue in Q1 2025, compared to 90% in Q1 2024[60] Operating Expenses - Total operating expenses increased to $71,599,000 in Q1 2025 from $52,683,000 in Q1 2024, primarily due to higher research and development costs[15] Cash and Liquidity - Cash and cash equivalents at the end of Q1 2025 were $316,207,000, down from $336,763,000 at the beginning of the period[20] - The company reported a net cash used in operating activities of $16,980,000 for Q1 2025, compared to $32,286,000 in Q1 2024[20] - Total cash and cash equivalents decreased from $333.7 million as of December 31, 2024, to $316.2 million as of March 31, 2025, representing a decline of approximately 5.0%[29] Assets and Liabilities - Total current assets decreased to $465,791,000 as of March 31, 2025, from $481,800,000 as of December 31, 2024[13] - Total liabilities as of March 31, 2025, were $130,218,000, a slight decrease from $131,700,000 as of December 31, 2024[13] Stock and Equity - The company issued 560,000 shares of common stock under stock plans during the first quarter of 2025, increasing total shares outstanding to 55,278,000[17] - The weighted-average common stock outstanding increased to 54.917 million shares in Q1 2025 from 51.011 million shares in Q1 2024[53] Inventory and Property - Total inventory rose from $56.2 million as of December 31, 2024, to $62.3 million as of March 31, 2025, marking an increase of approximately 10.0%[31] - Total property and equipment, net, increased from $26.7 million as of December 31, 2024, to $28.1 million as of March 31, 2025, a growth of about 5.3%[32] Debt and Interest - The Company achieved a twelve-month revenue target of $200 million as of December 31, 2024, which allowed for an extension of the interest-only period on the Term Loan Facility[35] - The weighted-average interest rate for the Term Loan Facility decreased from 7.8% for the period ending March 31, 2024, to 6.6% for the period ending March 31, 2025[36] - Future minimum annual debt repayments total $52 million, with $8.67 million due in 2026 and $43.33 million due in 2027[38] Stock-Based Compensation - The Company recorded a total of $10.7 million of unrecognized stock-based compensation expense related to stock options as of March 31, 2025[47] - The fair value of options granted to employees was estimated at a weighted-average fair value of $35.00 for the three months ended March 31, 2025[47] - As of March 31, 2025, the total unrecognized stock-based compensation expense related to RSUs was $99.6 million[48] - The Company awarded 683,000 RSUs during the three months ended March 31, 2025, with a weighted-average fair value of $61.15[48] Employee Contributions - Employer contributions to the defined contribution retirement savings plan were $0.9 million for the three months ended March 31, 2025[64] Segment Information - The Company operates as a single operating segment, with no customers accounting for more than 10% of revenue during the three months ended March 31, 2025[58]

Financial Performance - Total revenues for the three months ended March 31, 2025, were $483.5 million, a decrease of 1.6% compared to $488.3 million for the same period in 2024[19]. - For the six months ended March 31, 2025, total revenue was $859.3 million, compared to $852.3 million for the same period in 2024, indicating an increase of approximately 0.7%[138]. - Net loss attributable to OneWater Marine Inc. for the three months ended March 31, 2025, was $368,000, compared to a net loss of $3.97 million for the same period in 2024[19]. - For the six months ended March 31, 2025, the net loss was $13,987,000 compared to a net loss of $12,479,000 for the same period in 2024, representing an increase in loss of approximately 12.1%[24]. - The company reported a gross profit margin of 22.9% for the three months ended March 31, 2025, compared to 24.6% for the same period in 2024[19]. Cash and Assets - Cash and cash equivalents increased to $67.5 million as of March 31, 2025, from $16.8 million as of September 30, 2024[17]. - Total assets rose to $1.64 billion as of March 31, 2025, compared to $1.59 billion as of September 30, 2024[17]. - Cash and restricted cash at the end of the period was $75,553,000, an increase of $48,216,000 from the beginning of the period[24]. - Total accounts receivable increased to $91.6 million as of March 31, 2025, from $73.3 million as of September 30, 2024, representing a 24.9% increase[67]. - The company experienced a decrease in accounts receivable by $15,540,000 for the six months ended March 31, 2025[24]. Inventory and Financing - Inventory levels increased to $602.4 million as of March 31, 2025, from $590.8 million as of September 30, 2024[17]. - The outstanding balance of the Inventory Financing Facility was $509.0 million as of March 31, 2025, up from $443.4 million as of September 30, 2024[72]. - The Company’s Inventory Financing Facility balance was $309.0 million as of March 31, 2025, with a potential interest expense change of approximately $3.1 million for a 100 basis point interest rate fluctuation[251]. - The A&R Credit Facility had an outstanding balance of $231.4 million as of March 31, 2025, with a potential interest expense change of approximately $2.3 million for a 100 basis point interest rate fluctuation[252]. Expenses and Liabilities - Selling, general and administrative expenses were $87.8 million for the three months ended March 31, 2025, slightly up from $86.5 million in the same period of 2024[19]. - Interest expense related to floor plan financing was $7.5 million for the three months ended March 31, 2025, compared to $8.5 million in the same period of 2024[19]. - The company reported depreciation and amortization of $12,208,000 for the six months ended March 31, 2025, up from $10,470,000 in the prior year[24]. - The company incurred total expenses of $40.8 million under the Tax Receivable Agreement as of March 31, 2025, representing 85% of anticipated net cash savings from tax benefits[119]. Shareholder Equity and Stock - OneWater Marine Inc. reported a total stockholders' equity of $381,615,000 as of March 31, 2025, down from $390,753,000 at the end of 2024[21]. - The company issued 160 shares upon vesting of equity-based awards, resulting in a decrease of $1,824,000 in additional paid-in capital[21]. - The total unrecognized compensation expense related to outstanding equity awards was $7.8 million as of March 31, 2025[87]. - As of March 31, 2025, the company has repurchased and retired 73,487 shares of Class A common stock for approximately $1.9 million, with $48.1 million remaining available for future purchases under the share repurchase program[91]. Operational Insights - The company experienced a decrease in new boat revenues, which totaled $309.5 million for the three months ended March 31, 2025, down from $327.3 million in 2024[19]. - The company anticipates continued challenges in the boat industry due to seasonality and economic conditions affecting consumer demand[12]. - As of March 31, 2025, OneWater Marine Inc. operates 98 retail locations and 9 distribution centers across 19 states[27]. - The company recorded a loss on asset disposals of $200,000 for the six months ended March 31, 2025[24]. Tax and Regulatory Matters - The effective tax rates for the three months ended March 31, 2025, and 2024, were 28.3% and 29.0%, respectively, while for the six months ended March 31, 2025, and 2024, they were 27.9% and 24.8%[113]. - The Company has not recognized any uncertain tax positions or penalties as of March 31, 2025, indicating a stable tax position[118]. Risk Factors - Economic conditions, including rising interest rates and trade policy uncertainties, may negatively impact the Company's operating results[28]. - The company is exposed to foreign currency risk due to purchasing new boats and parts from foreign manufacturers, which may affect competitive pricing in the U.S.[254]. - Fluctuations in foreign currency rates could adversely impact the company's future operating results if not recaptured in customer pricing[254].

Financial Performance - Total portfolio RevPAR increased 6.7% to $188.73 for the three months ended March 31, 2025, compared to $176.86 for the same period in 2024[139]. - Net income increased 84.1% for the three months ended March 31, 2025, primarily due to an $8.5 million increase in hotel operating income for 31 comparable hotels[140]. - Adjusted EBITDAre and Adjusted FFO attributable to common stock and unit holders increased 11.8% and 14.4%, respectively, for the three months ended March 31, 2025, compared to the same period in 2024[141]. - Occupancy rate improved by 190 basis points to 69.3% for the three months ended March 31, 2025, compared to 67.4% in 2024[142]. - Average Daily Rate (ADR) increased by 3.8% to $272.41 for the three months ended March 31, 2025, compared to $262.39 in 2024[142]. - Total revenues increased by $21.4 million, or 8.0%, to $288.9 million for the three months ended March 31, 2025, compared to $267.5 million for the same period in 2024[143]. - Rooms revenues rose by $6.7 million, or 4.4%, to $159.9 million, driven by increased occupancy and average daily rates, despite a $1.2 million reduction from the sale of Lorien Hotel & Spa[144]. - Food and beverage revenues increased by $11.9 million, or 12.9%, to $104.7 million, primarily due to higher occupancy levels[145]. - Other revenues grew by $2.8 million, or 12.8%, to $24.4 million, attributed to increased occupancy[147]. - Net income for the three months ended March 31, 2025, was $16.5 million, a 83.5% increase from $9.0 million in the same period of 2024[197]. - FFO attributable to common stock and unit holders for Q1 2025 was $49.6 million, up 21.5% from $40.9 million in Q1 2024[199]. - Adjusted FFO for Q1 2025 reached $52.1 million, representing a 14.1% increase compared to $45.5 million in Q1 2024[199]. - Adjusted EBITDAre attributable to common stock and unit holders was $72.9 million for Q1 2025, a 11.5% increase from $65.3 million in Q1 2024[197]. Operational Metrics - Demand for hotel rooms increased by 1.0% during the three months ended March 31, 2025, while new hotel supply increased by 0.6%[138]. - The U.S. lodging industry experienced a RevPAR increase of 2.2% for the three months ended March 31, 2025, compared to the same period in 2024[138]. - The company owned 31 hotels and resorts, comprising 9,413 rooms across 14 states as of March 31, 2025[131]. Expenses and Debt - Total hotel operating expenses rose by $12.5 million, or 6.8%, to $195.5 million, largely due to increased occupancy and renovations, net of a $2.0 million reduction from the sale of Lorien Hotel & Spa[150]. - Corporate and other expenses increased by $0.7 million, or 1.2%, to $57.5 million, with depreciation and amortization expenses rising by $1.2 million, or 3.8%[151]. - Interest expense increased by $0.7 million, or 3.4%, to $21.1 million, primarily due to higher average outstanding term loan debt and rising interest rates[159]. - Total outstanding debt was $1.4 billion with a weighted-average interest rate of 5.67% as of March 31, 2025[168]. - Total debt as of March 31, 2025, was $1.44 billion, with a weighted-average interest rate of 5.74%[214]. - Fixed rate debt accounted for $1.06 billion of total debt, while variable rate debt was $378.1 million[214]. - The company has taken steps to reduce variable rate debt exposure by paying off floating rate mortgage debt and entering into interest rate swap agreements[212]. Cash Flow and Investments - Cash provided by operating activities was $54.8 million for the three months ended March 31, 2025, compared to $24.7 million for the same period in 2024, reflecting a significant increase[186]. - Cash used in investing activities was $56.2 million for the three months ended March 31, 2025, primarily due to $32.4 million in capital improvements and $25.4 million for land purchase[187]. - Cash provided by financing activities was $39.9 million for the three months ended March 31, 2025, driven by proceeds from the 2024 Delayed Draw Term Loan of $100 million[189]. Shareholder Returns and Compliance - During the three months ended March 31, 2025, the Company repurchased 2,733,149 shares at a weighted-average price of $13.09 per share, totaling $35.8 million[179]. - As of March 31, 2025, the Company was in compliance with all debt covenants except for one mortgage loan, which was cured by depositing $5.0 million in an escrow account[175]. - The Company had $200 million available for sale under its ATM program as of March 31, 2025, with no shares sold during the three months ended March 31, 2025[177]. Future Outlook and Strategic Initiatives - The company continues to monitor challenges associated with inflationary pressures and changing interest rates that could impact operating results[137]. - The company aims to maximize revenue and profits from existing properties while enhancing portfolio value and generating sustainable cash flow for shareholders[166]. - The Operating Partnership entered into a new $825 million senior unsecured credit facility, which includes a $500 million revolving line of credit and a $225 million term loan[170]. - The remaining commitments under renovation contracts as of March 31, 2025, totaled $24.2 million[183]. - The company recognized a net gain of $1.1 million from the purchase of land associated with a ground lease in Q1 2025[198]. - The sale of the Fairmont Dallas for $111.0 million in February 2025 resulted in an estimated gain of approximately $39.3 million, net of transaction costs[207]. - If market interest rates on variable rate debt increase or decrease by 1%, future earnings and cash flows would be impacted by approximately $3.3 million per annum[210]. Non-GAAP Financial Measures - The Company considers non-GAAP financial measures such as EBITDA and FFO useful for evaluating operating performance[190]. - As of March 31, 2025, the Company had $61.7 million in FF&E reserves, an increase from $58.9 million as of December 31, 2024[182].

Financial Performance - BigBear.ai reported revenues of $34.8 million for the three months ended March 31, 2025, representing a year-over-year increase of $1.6 million or 4.9% compared to $33.1 million in the same period of 2024[196][197]. - The operating loss for Q1 2025 was $21.2 million, an improvement from a loss of $98.1 million in Q1 2024[196]. - BigBear.ai's net loss for the three months ended March 31, 2025, was $62.0 million, compared to a net loss of $127.8 million in the same period of 2024[196]. - Free cash flow for Q1 2025 was a negative $8.3 million, an improvement from negative $16.0 million in Q1 2024, indicating better cash generation capabilities[215]. - The company reported a net loss before depreciation, amortization, and other non-cash items of $12.0 million for the three months ended March 31, 2025, compared to a net loss of $7.8 million in the same period of 2024[245][246]. Revenue and Cost Analysis - Cost of revenues for the same period was $27.4 million, up $1.2 million or 4.7% from $26.1 million in 2024, maintaining a cost of revenues as a percentage of total revenues at 79%[196][199]. - SG&A expenses increased to $22.7 million for the three months ended March 31, 2025, up 34.1% from $16.9 million in the same period of 2024, with SG&A as a percentage of revenues rising to 65% from 51%[200]. - Research and development expenses surged by $3.0 million to $4.2 million in Q1 2025, representing a 264.2% increase compared to $1.1 million in Q1 2024, driven by increased headcount and project timing[201]. - Restructuring charges rose to $1.7 million in Q1 2025, a 97.4% increase from $860,000 in Q1 2024, related to employee separation costs for strategic cost-saving initiatives[202]. Cash Flow and Financing Activities - The net cash provided by financing activities for the three months ended March 31, 2025, was $65.9 million, an increase of 29% from $51.0 million in the same period of 2024[248][249]. - The company sold 1,936,000 shares under the ATM Program for an aggregate offering price of $6.6 million during the three months ended March 31, 2025[228]. - The net proceeds from the exercise of the 2024 PIPE warrants and 2024 RDO warrants contributed $64.7 million to financing activities in Q1 2025[248]. - The company incurred capitalized software development costs of $1.5 million in Q1 2025, compared to $1.6 million in Q1 2024[247]. Debt and Backlog - Total debt decreased to $143.1 million as of March 31, 2025, down from $200.8 million as of December 31, 2024, reflecting a reduction of approximately 29%[230]. - Funded backlog represents the remaining contract value of goods and services to be delivered under existing contracts, providing insight into future revenue potential[219]. - As of March 31, 2025, total backlog was $384.9 million, down from $418.3 million as of December 31, 2024, representing a decrease of approximately 8%[221]. Strategic Initiatives and Acquisitions - The company completed the acquisition of Pangiam on February 29, 2024, enhancing its capabilities in vision AI and positioning it as a leader in operationalizing AI at the edge[176]. - The company anticipates that the global economic and geopolitical environment will drive long-term adoption of its AI offerings, despite potential funding shifts affecting defense spending[185]. Other Financial Metrics - Interest expense for the three months ended March 31, 2025, was $5.1 million, down from $6.4 million in the same period of 2024[196]. - Other income improved to a net loss of $276,000 in Q1 2025, a 39.3% reduction from a loss of $455,000 in Q1 2024, mainly due to increased interest income[207]. - A favorable change in net working capital of $5.4 million in Q1 2025 was driven by a decrease in accounts receivable of $4.3 million and an increase in accrued expenses of $4.4 million[245]. - Cash and cash equivalents at the end of the period for Q1 2025 were $107.6 million, up from $81.4 million at the end of Q1 2024, reflecting a 32% increase[244].