Revenue Growth - For the three months ended April 30, 2025, National Retail Solutions (NRS) generated total revenues of $31.1 million, a 21.1% increase from $25.7 million in the same period of 2024[130]. - NRS's recurring revenue for the three months ended April 30, 2025, was $29.4 million, reflecting a 22.9% growth compared to $24.0 million in the prior year[130]. - BOSS Money revenues increased by 24.7% to $34.4 million in Q3 2025 compared to Q3 2024, and by 32.2% to $101.6 million in the nine months ended April 30, 2025 compared to the same period in 2024[137]. - Revenues from IDT Digital Payments increased by 1.0% to $102.6 million for the three months ended April 30, 2025, and by 2.7% to $309.3 million for the nine months ended April 30, 2025 compared to the same periods in fiscal 2024[149]. - BOSS Revolution revenues decreased by 18.1% to $51.7 million for the three months ended April 30, 2025, and by 19.5% to $161.9 million for the nine months ended April 30, 2025 compared to the same periods in fiscal 2024[149]. - IDT Global revenues remained unchanged at $50.1 million for the three months ended April 30, 2025, and increased by 1.9% to $153.7 million for the nine months ended April 30, 2025 compared to the same periods in fiscal 2024[149]. Profitability - Gross profit for NRS in the three months ended April 30, 2025, was $28.4 million, a 28.4% increase from $22.1 million in the same period of 2024[130]. - Gross profit for the company rose by 30.6% to $22.6 million in Q3 2025, and by 36.6% to $65.8 million in the nine months ended April 30, 2025[137]. - Income from operations for NRS increased to $6.2 million in the three months ended April 30, 2025, a 29.3% increase from $4.8 million in the same period of 2024[130]. - Income from operations increased by 39.2% to $17.3 million for the three months ended April 30, 2025, and by 20.2% to $51.1 million for the nine months ended April 30, 2025 compared to the same periods in fiscal 2024[149]. - The company reported a gross margin percentage of 58.5% in Q3 2025, an increase from 54.9% in Q3 2024[137]. - The gross margin percentage improved to 20.7% for the three months ended April 30, 2025, compared to 18.6% for the same period in fiscal 2024, and to 19.9% for the nine months ended April 30, 2025, compared to 18.7% for the same period in fiscal 2024[149]. Expenses - Selling, general and administrative expenses for NRS increased to 64.2% of revenue in the three months ended April 30, 2025, compared to 60.9% in the same period of 2024[134]. - Selling, general and administrative expenses decreased as a percentage of revenue to 41.5% in Q3 2025 from 48.4% in Q3 2024, and to 43.0% from 50.8% in the nine months ended April 30, 2025 compared to 2024[139]. - net2phone's selling, general and administrative expenses decreased to 59.1% of revenues in Q3 2025 from 63.1% in Q3 2024[144]. - Technology and development expenses rose due to increased employee compensation and depreciation, impacting overall operational costs[135]. - Technology and development expenses decreased in the BOSS Money segment due to lower employee compensation expenses[140]. - Technology and development expenses decreased by 4.3% to $5.4 million for the three months ended April 30, 2025, and by 7.7% to $16.2 million for the nine months ended April 30, 2025 compared to the same periods in fiscal 2024[155]. Cash Flow and Capital Management - Cash flow from operations increased to $96.1 million for the nine months ended April 30, 2025, compared to $52.7 million in the same period of 2024[173]. - Total cash, cash equivalents, debt securities, and current equity investments amounted to $223.8 million as of April 30, 2025[170]. - Capital expenditures for the nine months ended April 30, 2025, were $15.5 million, with anticipated total capital expenditures for the next twelve months projected between $18 million and $21 million[180]. - The company paid aggregate cash dividends of $4.0 million in the nine months ended April 30, 2025, compared to $1.3 million in the same period of 2024[183]. - The company expects cash flow from operations and current investments to meet anticipated working capital and capital expenditure requirements for the next twelve months[169]. - The company has a contractual obligation total of $20.8 million, with $7.1 million due within one year[171]. Shareholder Actions - The company repurchased 221,823 shares of Class B common stock for $10.1 million in the nine months ended April 30, 2025, compared to 204,107 shares for $5.7 million in the same period of 2024[189]. - IDT Telecom repurchased shares to satisfy tax withholding obligations, paying $7.7 million for 157,180 shares in the nine months ended April 30, 2025[190]. - The company has 4.2 million shares remaining available for repurchase under the stock repurchase program as of April 30, 2025[189]. - Cash received from the exercise of stock options was $0.2 million for 12,500 shares in the nine months ended April 30, 2024, with no stock option exercises in 2025[188]. Debt and Financing - IDT Telecom entered into a credit agreement for a revolving credit facility of up to $25.0 million, with no amounts outstanding as of April 30, 2025[185]. - In the nine months ended April 30, 2025, IDT Telecom borrowed and repaid an aggregate of $24.6 million under the credit facility, compared to $32.9 million in the same period of 2024[185]. - IDT Telecom is in compliance with all covenants related to the revolving credit facility as of April 30, 2025[186]. Customer and Market Insights - Active POS terminals increased to 35.6 thousand, up 18% from 30.3 thousand in the same period last year[132]. - Payment processing accounts rose to 25.5 thousand, marking a 31% increase from 19.5 thousand in the previous year[132]. - Revenues from international operations accounted for 21% of consolidated revenues in the three months ended April 30, 2025, down from 22% in the same period of 2024[193]. - The Fintech segment contributed 12.8% of total revenues in the three months ended April 30, 2025, up from 10.5% in the same period of 2024[136]. - Traditional Communications segment accounted for 69.6% of total revenues in Q3 2025, down from 74.0% in Q3 2024, indicating a shift in revenue composition[147]. Net Income - Net income for the three months ended April 30, 2025, was $23.0 million, a 262.1% increase from $6.4 million in the same period of 2024[165]. - For the nine months ended April 30, 2025, net income was $63.6 million, up 108.2% from $30.5 million in 2024[165].

Financial Outlook - The company has reaffirmed its full year outlook for 2025, expecting comparable sales growth in the range of 1% to 3% and earnings per diluted share between $13.80 and $14.40[51]. - The macroeconomic environment remains dynamic, influenced by elevated interest rates and inflationary pressures, which could impact consumer discretionary spending[49]. - The company is well-positioned for long-term growth despite the complex macroeconomic environment[50]. Acquisition and Merger - The company announced a definitive merger agreement to acquire Foot Locker for a total equity value of approximately $2.4 billion and an enterprise value of approximately $2.5 billion[47]. - A definitive merger agreement was entered into to acquire Foot Locker, with shareholders to receive either $24.00 in cash or 0.1168 shares of DICK'S common stock per share[70]. - Foot Locker delivered sales of $8 billion in fiscal 2024 and operates approximately 2,400 retail stores across 20 countries[47]. - The company anticipates the acquisition will deliver between $100 to $125 million in cost synergies in the medium-term through procurement and direct sourcing efficiencies[48]. Sales and Income Performance - Net sales increased by 5.2% to $3.17 billion in the current quarter, with comparable sales rising by 4.5%[57]. - Net income for the current quarter was $264.3 million, or $3.24 per diluted share, down from $275.3 million, or $3.30 per diluted share, in the prior year[57]. - Gross profit increased to $1.17 billion, with a gross profit margin improvement of 41 basis points[63]. Expenses and Financial Management - Selling, general and administrative expenses are expected to deleverage in fiscal 2025 due to strategic investments in digital, in-store, and marketing initiatives[54]. - Selling, general and administrative expenses rose by 5.7% to $785.5 million, increasing as a percentage of net sales by 11 basis points[64]. - The effective tax rate increased to 24.0% from 19.6% in the prior year quarter[67]. - The company has $1.0 billion in cash on hand and a $1.6 billion Credit Facility available[68]. Capital Expenditures and Investments - Capital expenditures for the quarter totaled $264.7 million, focusing on omni-channel platform development and store investments[75]. - The company anticipates fiscal 2025 capital expenditures of approximately $1.0 billion, focusing on store growth, relocations, and improvements[76]. - The company plans to open approximately 16 DICK'S House of Sport locations in 2025 and expects to have between 75 to 100 locations by the end of 2027[76]. - The company expects approximately 70% of its 2025 store openings to be relocations or remodels, increasing square footage by approximately 2% to 3%[76]. Shareholder Returns - The company repurchased 1.4 million shares for a total of $298.7 million under a $2.0 billion share repurchase program[57]. - During the 13 weeks ended May 3, 2025, the company repurchased 1.4 million shares at a cost of $298.7 million, with $212.9 million remaining under the share repurchase program[77]. - The company paid $99.9 million in dividends during the 13 weeks ended May 3, 2025, and declared a quarterly cash dividend of $1.2125 per share payable on June 27, 2025[79]. - Future share repurchase programs will depend on future earnings, cash flows, and financial requirements[78]. Cash Flow and Financing Activities - Net cash provided by operating activities decreased by $53.7 million to $178.046 million for the 13 weeks ended May 3, 2025, compared to the prior year[82]. - Cash used in investing activities increased by $227.7 million to $385.693 million for the 13 weeks ended May 3, 2025, primarily due to investments in new stores and a distribution facility[84]. - Cash used in financing activities increased by $220.9 million to $446.729 million for the 13 weeks ended May 3, 2025, mainly due to higher share repurchases[85]. - Liabilities associated with supply chain financing arrangements were $58.4 million as of May 3, 2025[81].

Financial Performance - Casey's reported a net income of $546.5 million for fiscal year 2025, an increase of 8.9% compared to the previous year, with EBITDA reaching $1.2 billion, up 13.3%[4] - Net income for the twelve months ended April 30, 2025, was $546,520 thousand, a 8.9% increase from $501,972 thousand in 2024[21] - Net income for the three months ended April 30, 2025, was $98,307,000, an increase from $87,020,000 in 2024, representing a growth of 14.7%[33] - EBITDA for the twelve months ended April 30, 2025, reached $1,200,047,000, compared to $1,059,398,000 in 2024, reflecting a year-over-year increase of 13.3%[33] - Revenue for the twelve months ended April 30, 2025, reached $15,940,899 thousand, up from $14,862,913 thousand in 2024, marking a growth of 7.2%[23] Sales and Profitability - Inside same-store sales increased by 2.6% for the fiscal year, with total inside gross profit rising 12.5% to $582.4 million[6] - Fuel gross profit increased by 21.4% to $307.8 million, with total fuel gallons sold rising 17.8% year-over-year[8] - Gross profit margin for Prepared Food & Dispensed Beverage was 58.2% for the fiscal year 2025, slightly down from 58.7% in 2024[24] - Same-store sales margin for Prepared Food & Dispensed Beverage decreased to 3.5% in fiscal year 2025 from 6.8% in fiscal year 2024[24] - Fuel gallons sold increased to 3,196,852 for the twelve months ended April 30, 2025, compared to 2,828,669 in 2024, reflecting a growth of 13.0%[23] Store Expansion and Customer Engagement - The company opened or acquired 270 stores during the fiscal year, the highest in its history, including the acquisition of Fikes Wholesale and its 198 CEFCO convenience stores[6] - Casey's Rewards membership grew to over 9 million by year-end, indicating strong customer engagement[6] Financial Position and Liquidity - The company maintained a strong balance sheet, finishing the year with a debt-to-EBITDA ratio of 1.9x[6] - Available liquidity at April 30, 2025, was approximately $1.2 billion, consisting of $327 million in cash and $900 million in undrawn borrowing capacity[12] - Total assets increased to $8,208,118 thousand as of April 30, 2025, up from $6,347,433 thousand in the previous year, representing a growth of 29.2%[19] - Cash and cash equivalents at the end of the period were $326,662 thousand, up from $206,482 thousand, indicating a 58.0% increase[21] Investments and Acquisitions - The company invested $1,239,249 thousand in acquisitions during the fiscal year 2025, compared to $330,032 thousand in 2024, representing a substantial increase of 275.5%[21] - The company has outlined potential growth opportunities and strategic plans, including the integration and financial performance of acquired stores[34] Operating Expenses and Other Financial Metrics - Operating expenses for the fourth quarter increased by 14.5%, primarily due to operating 246 additional stores compared to the prior year[9] - Interest expenses for the three months ended April 30, 2025, were $27,916,000, up from $14,494,000 in 2024, indicating an increase of 92.9%[33] - Federal and state income taxes for the twelve months ended April 30, 2025, totaled $165,929,000, compared to $154,188,000 in 2024, marking an increase of 7.6%[33] - Depreciation and amortization for the three months ended April 30, 2025, was $107,443,000, up from $92,344,000 in 2024, which is an increase of 16.4%[33] Future Outlook - The company expects EBITDA to increase by 10% to 12% in fiscal 2026, with inside same-store sales projected to rise by 2% to 5%[15] - The company emphasizes that forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations[34] Dividends and Shareholder Returns - A quarterly dividend of $0.57 per share was announced, marking a 14% increase and the 26th consecutive annual increase[14] Investor Relations - The earnings conference call is scheduled for June 10, 2025, at 7:30 a.m. CDT, and will be accessible via the company's investor relations website[35] - Investor relations and media contacts are available for further inquiries, with specific contact details provided[36]

Revenue Reporting - Hyperscale Data, Inc. reported unaudited revenue for Q1 2025, with specific figures to be detailed in the attached press release[5] - The company provided guidance for projected revenue for the fiscal year ending December 31, 2025, indicating expectations for growth[5] Financial Documentation - The press release is attached as Exhibit 99.1, which contains detailed financial information and operational results[10]

Financial Performance - Hyperscale Data, Inc. reported unaudited revenue for Q1 2025, with specific figures to be detailed in the attached press release[5] - The company provided guidance for projected revenue for the fiscal year ending December 31, 2025, indicating expectations for growth[5] - The press release is attached as Exhibit 99.1, which contains further financial details and operational insights[10] Regulatory and Compliance - The company is registered under the NYSE American with the symbol GPUS for its Class A Common Stock[3] - The company has not elected to use the extended transition period for complying with new financial accounting standards[4] - The company is classified as an emerging growth company under the relevant securities regulations[4] Risk Factors - The report includes forward-looking statements that involve risks and uncertainties, cautioning investors against undue reliance on these projections[7] Public Access and Documentation - The financial statements and exhibits are available for public access through the SEC's website[9] - The report was signed by Henry Nisser, President and General Counsel, on May 5, 2025[14] - The address of the company's principal executive offices is 11411 Southern Highlands Parkway, Suite 190, Las Vegas, NV 89141[2]

Financial Performance - Consolidated net sales were $126.8 million in Q3 FY2025, a decrease of 1.0% year-over-year and an increase of 0.2% sequentially[6]. - Consolidated gross profit was $38.9 million, representing a gross margin of 30.7%, up from 26.7% in the previous quarter[7]. - Consolidated net loss attributable to common shareholders was $14.5 million, compared to a net loss of $1.0 million in the prior year period[10]. - Consolidated Adjusted EBITDA was $12.6 million, an increase from $11.9 million in the prior year period and $2.9 million in the previous quarter[11]. - Consolidated net bookings were $71.0 million, a decrease of 30.2% year-over-year, with a book-to-bill ratio of 0.56x[12]. - The company reported a net loss of $163.2 million for the nine months ended April 30, 2025, compared to a net loss of $9.2 million in the same period of 2024[41]. - The net loss per common share for the nine months ended April 30, 2025, was $6.56, compared to a loss of $1.21 in the same period of 2024[41]. - For the three months ended April 30, 2025, the company reported a net loss of $1,532,000, translating to a loss per diluted share of $(0.49) compared to a net loss of $3,470,000 and a loss per diluted share of $(0.04) for the same period in 2024[47]. - The non-GAAP net loss for the three months ended April 30, 2025, was $5,238,000, resulting in a non-GAAP loss per diluted share of $(0.18), while the non-GAAP net income for the same period in 2024 was $8,790,000 with a non-GAAP income per diluted share of $0.20[47]. Revenue and Sales Segments - The Terrestrial and Wireless Networks segment reported net sales of $59.2 million, an increase of 4.6% year-over-year, driven by NG-911 services[22]. - The Satellite and Space Communications segment's net sales were $67.6 million, a decrease of 5.3% year-over-year, impacted by lower sales to the U.S. Marine Corps and U.S. Army[15]. - A new contract valued at over $27.0 million for statewide NG-911 services has been secured for a Southeastern state[32]. - Various funded orders totaling $9.0 million for wireless location-based messaging services were received[32]. - Incremental funding of over $2.5 million was secured from a new international customer for location-based messaging services[32]. Cost and Expenses - Selling, general and administrative expenses increased to $115.7 million for the nine months ended April 30, 2025, compared to $91.7 million in 2024, reflecting a 26.2% rise[41]. - The company incurred restructuring costs of $14,222,000 for the nine months ended April 30, 2025, compared to $9,197,000 for the same period in 2024[45]. - The company recognized restructuring costs of $12,470,000 for the fiscal year 2024, contributing to the overall net loss[48]. - The company incurred CEO transition costs of $2,916,000 during the fiscal year 2024, which were part of the overall operational expenses[48]. Balance Sheet and Assets - Total assets decreased from $912,434,000 on July 31, 2024, to $751,144,000 on April 30, 2025, representing a decline of approximately 17.7%[43]. - Current liabilities increased significantly from $183,547,000 to $372,683,000, marking an increase of about 103%[43]. - Goodwill decreased from $284,180,000 on July 31, 2024, to $204,625,000 on April 30, 2025, a reduction of approximately 28%[43]. - Total stockholders' equity fell from $306,253,000 to $115,433,000, a decrease of about 62.3%[43]. - The current portion of credit facility increased dramatically from $4,050,000 to $148,882,000, reflecting a rise of approximately 3,577%[43]. Future Outlook and Guidance - The company has not provided future financial targets, making it difficult to reconcile business outlook to GAAP measures[44]. - The company will host a conference call with investors and analysts on June 9, 2025[34]. Impairments and Adjustments - The company experienced a significant impairment of long-lived assets, including goodwill, amounting to $79,555,000 for the nine months ended April 30, 2025[47]. - The total net discrete tax expense for the fiscal year 2024 was $4,136,000, impacting the overall financial results[48]. - The adjustments to reflect the redemption value of convertible preferred stock contributed $15,900,000 to the fiscal year 2024 results, equating to $0.55 per diluted share[48]. - The company reported a change in the fair value of warrants and derivatives, resulting in a loss of $4,273,000 for the fiscal year 2024[48].

Financial Performance - Consolidated net sales for Q3 fiscal 2025 were $126.8 million, slightly up from $126.6 million in Q2 fiscal 2025 but down from $128.1 million in Q3 fiscal 2024[229]. - Consolidated net sales for the three months ended April 30, 2025, were $126.8 million, a decrease of $1.3 million, or 1.0%, compared to $128.1 million in the same period of 2024[244]. - Consolidated net sales decreased by $45.0 million, or 10.9%, to $369.2 million for the nine months ended April 30, 2025, compared to $414.2 million for the same period in 2024[289]. - The net loss attributable to common stockholders for the three months ended April 30, 2025, was $14.5 million, or $(0.49) per diluted common share[288]. - For the nine months ended April 30, 2025, the GAAP net loss attributable to common stockholders was $192.7 million, with a net loss per diluted common share of $6.56[337]. - The company incurred operating losses of $141.0 million for the nine months ended April 30, 2025, following previous losses of $79.9 million in fiscal 2024[342]. Segment Performance - Net sales in the Satellite and Space Communications segment were $67.6 million, down $3.8 million, or 5.3%, from $71.4 million in the prior year, primarily due to lower sales to the U.S. Marine Corps and U.S. Army[245]. - The Terrestrial and Wireless Networks segment saw net sales increase to $59.2 million, up $2.6 million, or 4.6%, compared to $56.6 million in the same period of 2024, driven by higher sales of NG-911 services[246]. - Net sales in the Satellite and Space Communications segment fell by $52.2 million, or 20.7%, to $200.2 million for the nine months ended April 30, 2025, primarily due to lower sales of troposcatter solutions and high-power solid state amplifiers[290]. - The Terrestrial and Wireless Networks segment saw an increase in net sales of $7.1 million, or 4.4%, reaching $168.9 million for the nine months ended April 30, 2025, driven by higher sales of NG-911 services[291]. Expenses and Costs - Selling, general and administrative expenses increased to $30.2 million, or 23.8% of consolidated net sales, compared to $28.7 million, or 22.4% in the prior year[254]. - Selling, general and administrative expenses rose to $115.7 million for the nine months ended April 30, 2025, representing 31.3% of consolidated net sales, up from 22.1% in 2024[299]. - Research and development expenses decreased to $4.4 million, or 3.5% of consolidated net sales, down from $5.7 million, or 4.5% in the same period of 2024[257]. - Research and development expenses decreased by $7.9 million, or 38.8%, to $12.5 million, accounting for 3.4% of consolidated net sales compared to 4.9% in the prior year[303]. - The company incurred $4.3 million in restructuring costs during the three months ended April 30, 2025, compared to $2.8 million in the same period of 2024[255]. - The company incurred $14.2 million in restructuring costs during the nine months ended April 30, 2025, compared to $9.2 million in the prior year[301]. Goodwill and Impairment - The company reported a total goodwill of $204.6 million as of April 30, 2025, with $30.5 million related to the Satellite and Space Communications segment and $174.1 million related to the Terrestrial and Wireless Networks segment[216]. - A non-cash impairment charge of $79.6 million was recorded in the Satellite and Space Communications segment during the first quarter of fiscal 2025[216]. - A non-cash goodwill impairment charge of $79.6 million was recognized in the first quarter of fiscal 2025 due to lower-than-expected financial performance in the Satellite and Space Communications segment[309]. - The Satellite and Space Communications segment experienced a non-cash goodwill impairment charge of $79.6 million, contributing to significantly lower net sales and gross profit[317]. Revenue and Contracts - Revenue recognition is based on FASB ASC 606, reflecting the consideration expected in exchange for goods or services promised to customers[211]. - The company anticipates future growth in end markets due to increasing demand for global voice, video, and data usage, as well as the growth of emergency communication networks[206]. - The company has experienced and expects ongoing risks related to contract revenue and cost estimates, particularly for fixed-price development contracts[214]. - The company faces risks related to government contracts, including unpredictable funding and the potential for contract termination at any time[208]. - Bookings for the quarter totaled $71.0 million, reflecting a book-to-bill ratio of 0.56x; excluding a $36.4 million debooking, gross bookings were $107.4 million with a ratio of 0.85x[229]. - Backlog as of April 30, 2025, was $708.1 million, down from $798.9 million as of July 31, 2024[229]. - Revenue visibility is approximately $1.2 billion, combining $708.1 million of funded backlog and the total unfunded value of multi-year contracts[229]. Financing and Debt - The company entered into a Second Amendment to the Credit Facility, reducing interest rates and waiving defaults, allowing for additional unsecured subordinated debt of $40.0 million[237]. - The company entered into an amendment to the Subordinated Credit Agreement, providing an incremental aggregate principal of $40.0 million[238]. - The company recorded $4.9 million of deferred financing fees and debt discounts as an immediate expense during the nine months ended April 30, 2025[322]. - Total outstanding borrowings under the credit facility were $168.0 million as of April 30, 2025[343]. - The credit facility was amended to decrease interest rate margins applicable to the term loan from 12.00% to 9.50% per annum[345]. - The company anticipates challenges in complying with financial covenants over the next twelve months[346]. Cash Flow and Liquidity - Cash and cash equivalents decreased from $32.4 million on July 31, 2024, to $28.4 million on April 30, 2025[338]. - Net cash used in operating activities improved to $19.7 million for the nine months ended April 30, 2025, compared to $45.0 million for the same period in 2024[341]. - Net cash used in investing activities was $6.5 million for the nine months ended April 30, 2025, primarily for capital expenditures related to cloud-based networks[341]. - The company plans to raise additional funds through equity and debt financing to provide flexibility and pursue acquisitions[353]. - Material cash requirements include $168.0 million in principal payments and $69.5 million in interest payments due under the Credit Facility, with total contractual cash obligations amounting to $366.9 million[361]. Strategic Outlook - The company is exploring strategic alternatives for its businesses, which may impact future results of operations[292]. - The company is not providing forward-looking guidance due to uncertainties related to its transformation strategy and various external economic factors[242]. - The company faces uncertainties regarding its ability to continue as a going concern, with substantial doubt raised about its financial stability[349]. - Significant capital expenditures are being made to support cloud-based networks for NG-911 contract wins, expected to continue throughout fiscal 2025 and beyond[354]. Legal and Regulatory Matters - The company’s U.S. federal income tax returns for fiscal 2022 through 2024 are subject to potential IRS audit, which could materially affect consolidated results[220]. - The company is subject to ongoing legal proceedings that may materially affect its financial condition and results of operations[364].

Sales Performance - Retail segment net sales accounted for approximately 85.0% of consolidated net sales for the three months ended April 30, 2025, down from 88.5% for the comparable period in fiscal 2025 [81]. - Subscription segment net sales accounted for approximately 9.4% of consolidated net sales for the three months ended April 30, 2025, compared to approximately 6.5% for the comparable period in fiscal 2025 [94]. - Wholesale segment net sales accounted for approximately 5.6% of consolidated net sales for the three months ended April 30, 2025, compared to 5.0% for the comparable period in fiscal 2025 [95]. - Net sales for the first quarter of fiscal 2026 were $1.33 billion, an increase of $128.8 million from $1.20 billion in the first quarter of fiscal 2025 [101]. - Retail segment comparable net sales increased by 4.8%, driven by higher store traffic and transactions, with notable increases of 6.9% at Anthropologie, 3.1% at Free People, and 2.1% at Urban Outfitters [102]. - Subscription segment net sales increased by 59.5%, primarily due to a 52.9% increase in the average number of active subscribers [103]. Store Expansion - Total company-owned stores increased from 733 to 744 from January 31, 2025, to April 30, 2025, with 13 new stores opened [89]. - Projected total company-owned stores for fiscal 2026 is expected to reach 780, with 64 new openings planned [93]. - Capital expenditures during fiscal 2026 are anticipated to be approximately $240 million, primarily for retail store expansion and technology investments [116]. Inventory and Expenses - Total inventory increased by $84.8 million, or 14.6%, to $663.8 million as of April 30, 2025 [105]. - Selling, general and administrative expenses increased by $27.1 million, or 8.1%, but decreased as a percentage of net sales to 27.2% [106]. Profitability - Gross profit increased to $489.1 million in the first quarter of fiscal 2026 from $408.4 million in the first quarter of fiscal 2025, with a gross profit percentage of 36.8% [104]. - Income from operations was $128.2 million, or 9.6% of net sales, compared to $74.6 million, or 6.2% of net sales, for the same period last year [107]. - The effective tax rate for the first quarter of fiscal 2026 was 21.4%, down from 23.6% in the first quarter of fiscal 2025 [108]. Segment Performance - North American Retail segment net sales for Anthropologie accounted for approximately 48.6% of total Retail segment net sales for the three months ended April 30, 2025, compared to approximately 47.8% for the comparable period in fiscal 2025 [84]. - North American Retail segment net sales for Free People accounted for approximately 23.8% of total Retail segment net sales for the three months ended April 30, 2025, compared to approximately 23.6% for the comparable period in fiscal 2025 [85]. - North American Retail segment net sales for Urban Outfitters accounted for approximately 14.8% of total Retail segment net sales for the three months ended April 30, 2025, down from approximately 16.8% for the comparable period in fiscal 2025 [86]. - Selling square footage for Urban Outfitters decreased by 3.9% from April 30, 2024, to April 30, 2025 [91]. - The Free People brand's selling square footage increased by 4.7% from April 30, 2024, to April 30, 2025 [91]. Future Growth Strategies - The company plans to expand its digital channels both domestically and internationally to drive future growth [92].

Financial Performance - Net sales for the three months ended April 30, 2025, were $190,546 thousand, an increase from $184,383 thousand in the same period of 2024, representing a growth of 0.63%[12] - Gross profit for the six months ended April 30, 2025, was $33,817 thousand, compared to $31,298 thousand for the same period in 2024, reflecting an increase of 8.05%[12] - Operating income for the three months ended April 30, 2025, was $7,630 thousand, slightly up from $7,316 thousand in the prior year, indicating a growth of 4.31%[12] - Net income attributable to Calavo Growers, Inc. for the six months ended April 30, 2025, was $11,265 thousand, compared to a net loss of $205 thousand in the same period of 2024[12] - Basic net income per share for continuing operations was $0.38 for the three months ended April 30, 2025, compared to $0.36 for the same period in 2024, showing an increase of 5.56%[12] - For the three months ended April 30, 2025, net sales reached $190.546 million, a 3.3% increase from $184.383 million in the same period of 2024[24] - For the six months ended April 30, 2025, net sales reached $344,931 thousand, compared to $311,989 thousand for the same period in 2024, reflecting an increase of 10.5%[25] - Net income attributable to Calavo Growers, Inc. for the three months ended April 30, 2025, was $6.850 million, compared to a net loss of $6.062 million in the same period of 2024[15] - Basic and diluted net income per share attributable to Calavo Growers, Inc. for the three months ended April 30, 2025, was $0.38, compared to $0.34 for the same period in 2024[60] Cash Flow and Liquidity - Cash flows from operating activities for the six months ended April 30, 2025, were $11,264 thousand, significantly higher than $2,150 thousand in the same period of 2024[13] - The company reported a net increase in cash and cash equivalents to $60,361 thousand as of April 30, 2025, up from $4,273 thousand at the end of the same period in 2024[13] - The company declared a dividend of $0.20 per share in April 2025, totaling $3.574 million[15] - The company paid dividends of $3.6 million on January 31, 2025, and another $3.6 million on April 29, 2025, at a rate of $0.20 per share[38] - The company declared a quarterly cash dividend of $0.20 per share on June 3, 2025, payable on July 30, 2025[74] Segment Performance - The Fresh segment generated $160.531 million in sales for the three months ended April 30, 2025, compared to $136.055 million in the same period of 2024, reflecting an 18% increase[24] - The Prepared segment reported net sales of $15.885 million for the three months ended April 30, 2025, down from $17.628 million in the same period of 2024, a decrease of 9.9%[24] - The Fresh segment's sales for the six months ended April 30, 2025, totaled $284.370 million, compared to $235.686 million in the same period of 2024, an increase of 20.6%[24] Expenses and Costs - Selling, general and administrative expenses decreased to $10,303 thousand for the three months ended April 30, 2025, from $13,020 thousand in the same period of 2024, a reduction of 20.9%[12] - The company incurred $10.4 million and $22.0 million of cost of sales to Belher for the three months ended April 30, 2025, and 2024, respectively[35] Assets and Liabilities - The total inventory as of April 30, 2025, was $41,625 thousand, up from $34,157 thousand as of October 31, 2024, marking an increase of 21.9%[27] - The net carrying value of long-lived assets as of April 30, 2025, was $51,058 thousand, down from $54,200 thousand as of October 31, 2024, a decrease of 5.4%[26] - The company had outstanding payables to Board members totaling $0.4 million as of April 30, 2025, compared to none as of October 31, 2024[29] - The investment in Don Memo was valued at $3 million as of April 30, 2025, an increase from $2.4 million as of October 31, 2024[32] - The company reported a total balance of shareholders' equity of $206.559 million as of April 30, 2025, up from $202.869 million as of January 31, 2025[15] Strategic Focus and Future Outlook - The company plans to continue focusing on operational efficiency and potential market expansion strategies in the upcoming quarters[8] - The company is currently evaluating the potential effects of recently issued accounting standards on its financial statement disclosures[21][22][23] - The company has not experienced any changes related to lease contingencies, with a maximum exposure of $32 million in future minimum lease payments[55][56] - The company continues to assess its obligation under lease contingencies but does not believe it is probable that it will be required to fulfill any obligations under these leases[56] Market and Risk Assessment - There have been no material changes in market risk from the information provided in Item 7A[138] - The quantitative and qualitative disclosures about market risk are included in the Annual Report on Form 10-K for the year ended October 31, 2024[138] Other Notable Events - The company experienced a foreign currency gain of $957 thousand for the three months ended April 30, 2025, compared to a loss of $181 thousand in the same period of 2024[12] - The company has renamed its "Grown" reportable segment to "Fresh" to better reflect its activities, with no impact on financial results or performance metrics[18] - The Fresh Cut business was sold for a total transaction value of $83 million, with $52 million for business assets and $31 million for real estate[71][72] - The company incurred a goodwill impairment charge of $9.3 million in connection with the sale of the Fresh Cut business[68] - The company recorded a provision of $11 million in the third quarter of fiscal year 2021 related to the 2013 tax assessment, which includes estimated fines, interest, and inflationary adjustments[53] - As of April 30, 2025, the company's VAT receivables from the Mexican government totaled $50.7 million (1.0 billion Mexican pesos), reflecting a slight increase from $48.7 million (976.0 million Mexican pesos) as of October 31, 2024[63]

Financial Performance - Net sales for the three months ended April 30, 2025, were $46.7 million, an increase of $10.4 million or 28.7% compared to $36.3 million for the same period in 2024[116] - Gross profit for the three months ended April 30, 2025, was $15.6 million, a decrease of $0.6 million or 3.7% from $16.2 million in the same period in 2024, with gross profit margin dropping to 33.5% from 44.6%[117] - The company reported an operating loss of $4.6 million for the three months ended April 30, 2025, compared to an operating profit of $2.2 million for the same period in 2024[119] - Net loss for the three months ended April 30, 2025, was ($3.9) million, down from net income of $1.7 million for the same period in 2024[121] Sales and Acquisitions - Sales from the Fire Services product line increased by $10.5 million, driven by $9.8 million in sales from the acquisitions of Veridian and LHD[116] - The company acquired Veridian for approximately $26.1 million and LHD for $14.8 million, enhancing its product offerings in firefighter protective apparel[111][112] Operating Expenses - Operating expenses increased by $6.3 million or 45.0%, from $14.0 million in Q1 FY24 to $20.3 million in Q1 FY25, primarily due to acquisitions and transaction-related expenses[118] - Cash used in operations was $4.9 million due to the net loss and an increase in working capital[124] Cash and Liquidity - Cash and cash equivalents as of April 30, 2025, were approximately $18.6 million, with working capital at approximately $104.4 million[122] - The company expects to repatriate cash from China during FY26, with an accrued withholding tax expense of $0.3 million[123] Debt and Credit Facilities - The Company has a secured revolving credit facility of up to $60.0 million from December 12, 2024, through January 31, 2026, and up to $50.0 million from February 1, 2026, through January 31, 2027[128] - The maximum principal amount under the revolving credit facility was reduced to $40 million following the use of net proceeds from equity issuance[128] - The Company must maintain a minimum basic fixed charge coverage ratio of at least 1.20x and a funded debt to EBITDA ratio not exceeding 3.5x, with step-downs to 3.25x and 3.0x in 2026 and 2027, respectively[130] - The Amended Loan Agreement includes a fee based on the difference between the line of credit commitment and the actual amount used, calculated at the Applicable Rate[129] Shareholder Returns - The Company authorized a stock repurchase program allowing for the repurchase of up to $10.0 million of its outstanding common stock[131] - No shares were repurchased in the three months ended April 30, 2025, leaving $5.0 million remaining under the share repurchase program[132] - A quarterly cash dividend of $0.03 per share was declared on February 1, 2025, and paid on February 24, 2025[132] Capital Expenditures - Capital expenditures for the three months ended April 30, 2025, were $1.2 million, primarily for a new ERP system and replacement equipment[133] - Anticipated capital expenditures for FY26 are approximately $3.0 million for equipment replacement and expansion of manufacturing capabilities[133] Compliance - The Company was in compliance with all debt covenants as of April 30, 2025[130]