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Mirum Pharmaceuticals Reports Second Quarter 2026 Financial Results and Provides Business Update

Mirum Pharmaceuticals Reports Second Quarter 2026 Financial Results and Provides Business Update

– Q2 2026 net product sales of $176 million

– 2026 net product sales guidance increased to $680 million to $700 million

– Volixibat granted Breakthrough Therapy and Orphan Drug Designations for cholestatic pruritus due to PSC

– Pre-NDA meeting held for volixibat in cholestatic pruritus due to PSC; additional discussions planned before potential NDA submission, now targeted in H1 2027

– Enrollment completed in VANTAGE study of volixibat in cholestatic pruritus due to PBC; data expected Q1 2027

– Conference call to provide business updates today, August 5 at 1:30 p.m. PT / 4:30 p.m. ET

FOSTER CITY, Calif.–(BUSINESS WIRE)–
Mirum Pharmaceuticals, Inc. (Nasdaq: MIRM), a leading rare disease company, today reported financial results for the second quarter 2026 and provided a business update.

“Mirum delivered another strong quarter, with continued commercial momentum supporting an increase to our full-year net product sales guidance and launch readiness for the upcoming potential approval of zilurgisertib,” said Chris Peetz, Chief Executive Officer of Mirum. “The FDA’s decision to grant volixibat Breakthrough Therapy and Orphan Drug Designations underscores the strength of the VISTAS efficacy data and the serious unmet need in PSC. VISTAS was designed with FDA input as a pivotal study and met its primary endpoint with highly significant results. However, at our recent pre-NDA meeting, the agency recommended conducting a Phase 3 study. We intend to hold further discussions with the FDA before a potential NDA submission in the first half of 2027 based on VISTAS.”

Q2 and Recent Highlights

Commercial: Raising Full Year Net Product Sales Guidance to $680 Million to $700 Million

  • Second quarter 2026 global net product sales of $176.2 million.

  • Second quarter 2026 LIVMARLI® net product sales were $128.7 million, representing 46% growth over second quarter 2025 net product sales.

  • Second quarter 2026 Bile Acid Medicines net product sales were $47.5 million, representing 20% growth over second quarter 2025 net product sales.

Regulatory and Pipeline: Advancing Toward Multiple Milestones

  • U.S. FDA granted volixibat Breakthrough Therapy Designation for the treatment of cholestatic pruritus due to primary sclerosing cholangitis (PSC) and Orphan Drug Designation for PSC.

  • Participated in pre-NDA meeting with U.S. FDA for volixibat in cholestatic pruritus due to PSC; planning additional discussions with the FDA before potential NDA submission, now targeted in H1 2027.

  • Brelovitug AZURE-1 and AZURE-4 Phase 3 studies in chronic hepatitis delta virus (HDV) topline results expected in Q3 and Q4 2026, respectively.

  • LIVMARLI EXPAND Phase 3 study in cholestatic pruritus due to additional rare cholestatic conditions topline results expected in Q4 2026.

  • Completed enrollment in the volixibat VANTAGE Phase 2b study in cholestatic pruritus due to primary biliary cholangitis (PBC); topline results expected in Q1 2027.

  • Presented positive pivotal Phase 2 results from the PROGRESS study of zilurgisertib in fibrodysplasia ossificans progressiva (FOP) at ENDO 2026; Prescription Drug User Fee Act (PDUFA) target action date for the zilurgisertib NDA is September 26, 2026.

Corporate & Financial: Strong Balance Sheet and Financial Independence

  • Total revenue for the quarter ended June 30, 2026 was $176.2 million compared to $127.8 million for the quarter ended June 30, 2025.

  • Total operating expenses were $218.8 million for the quarter ended June 30, 2026 compared to $132.8 million for the quarter ended June 30, 2025. Total operating expenses for the quarter ended June 30, 2026 included:

    • Cost of sales of $23.2 million, excluding intangible amortization and stock-based compensation expense.

    • Non-recurring acquired in-process research and development (IPR&D) expense associated with the exclusive license of worldwide rights to zilurgisertib of $16.4 million.

    • Research and development expense of $76.3 million, including $28.8 million for the development of brelovitug, excluding stock-based compensation expense.

    • Selling, general, and administrative expense of $65.6 million, excluding stock-based compensation expense.

    • $37.3 million of stock-based compensation, intangible amortization, and other non-cash expenses.

  • Issued $690.0 million aggregate principal amount of 0.00% convertible senior notes due 2032.

  • Settled $237.2 million aggregate principal amount of 4.00% convertible senior notes due 2029, which represented approximately 75% of the then-outstanding notes.

  • As of June 30, 2026, Mirum had unrestricted cash, cash equivalents, and investments of $561.3 million compared to $391.4 million as of December 31, 2025.

Business Update Conference Call

Mirum will host a conference call today, August 5 at 1:30 p.m. PT / 4:30 p.m. ET, to provide business updates. Join the call using the following details:

Conference Call Details:

US/Toll-Free: + 1 833 461 5787

International: +1 585 542 9983

Access Code: 789239699

You may also access the call via webcast by visiting the Investors section of Mirum’s corporate website. The archived webcast will be available for replay.

About LIVMARLI® (maralixibat) oral solutionand LIVMARLI® (maralixibat) tablets

LIVMARLI® (maralixibat) is an orally administered, ileal bile acid transporter (IBAT) inhibitor approved by the U.S. Food and Drug Administration for two pediatric cholestatic liver diseases. It is approved for the treatment of cholestatic pruritus in patients with Alagille syndrome (ALGS) in the U.S. three months of age and older and in Europe for patients two months of age and older. It is also approved in the U.S. for the treatment of cholestatic pruritus in patients with progressive familial intrahepatic cholestasis (PFIC) 12 months of age and older and in Europe for the treatment of PFIC in patients three months of age and older. For more information for U.S. residents, please visit LIVMARLI.com.

LIVMARLI has received Breakthrough Therapy designation for ALGS and PFIC type 2 and orphan designation for the treatment of ALGS and PFIC. LIVMARLI is currently being evaluated in the Phase 3 EXPAND study in additional settings of cholestatic pruritus. To learn more about ongoing clinical trials with LIVMARLI, please visit Mirum’s clinical trials section on the company’s website.

IMPORTANT SAFETY INFORMATION

Limitation of Use: LIVMARLI is not for use in PFIC type 2 patients who have a severe defect in the bile salt export pump (BSEP) protein.

LIVMARLI can cause side effects, including:

Liver injury. Changes in certain liver tests are common in patients with ALGS and PFIC but can worsen during treatment. These changes may be a sign of liver injury. In PFIC, this can be serious or may lead to liver transplant or death. Your healthcare provider should do blood tests and physical exams before starting and during treatment to check your liver function. Tell your healthcare provider right away if you get any signs or symptoms of liver problems, including nausea or vomiting, skin or the white part of the eye turns yellow, dark or brown urine, pain on the right side of the stomach (abdomen), bloating in your stomach area, loss of appetite or bleeding or bruising more easily than normal.

Stomach and intestinal (gastrointestinal) problems. LIVMARLI can cause stomach and intestinal problems, including diarrhea and stomach pain. Your healthcare provider may advise you to monitor for new or worsening stomach problems including stomach pain, diarrhea, blood in your stool or vomiting. Tell your healthcare provider right away if you have any of these symptoms more often or more severely than normal for you.

A condition called Fat Soluble Vitamin (FSV) Deficiency caused by low levels of certain vitamins (vitamin A, D, E, and K) stored in body fat is common in patients with ALGS and PFIC but may worsen during treatment. Your healthcare provider should do blood tests before starting and during treatment and may monitor for bone fractures and bleeding which have been reported as common side effects.

US Prescribing Information

EU SmPC

Canadian Product Monograph

About CHOLBAM® (cholic acid) capsules

The FDA approved CHOLBAM® (cholic acid) capsules in March 2015, the first FDA-approved treatment for pediatric and adult patients with bile acid synthesis disorders due to single enzyme defects, and for adjunctive treatment of patients with peroxisome biogenesis disorder-Zellweger spectrum disorder. The effectiveness of CHOLBAM has been demonstrated in clinical trials for bile acid synthesis disorders and the adjunctive treatment of peroxisomal disorders. An estimated 200 to 300 patients are current candidates for therapy.

CHOLBAM (cholic acid) Indication

CHOLBAM is a bile acid indicated for

  • Treatment of bile acid synthesis disorders due to single enzyme defects.

  • Adjunctive treatment of peroxisomal disorders, including Zellweger spectrum disorders, in patients who exhibit manifestations of liver disease, steatorrhea, or complications from decreased fat-soluble vitamin absorption.

LIMITATIONS OF USE

The safety and effectiveness of CHOLBAM on extrahepatic manifestations of bile acid synthesis disorders due to single enzyme defects or peroxisomal disorders, including Zellweger spectrum disorders, have not been established.

IMPORTANT SAFETY INFORMATION

WARNINGS AND PRECAUTIONS – Exacerbation of liver impairment

Monitor liver function and discontinue CHOLBAM in patients who develop worsening of liver function while on treatment.

Concurrent elevations of serum gamma glutamyltransferase (GGT) and alanine aminotransferase (ALT) may indicate CHOLBAM overdose.

Discontinue treatment with CHOLBAM at any time if there are clinical or laboratory indicators of worsening liver function or cholestasis.

ADVERSE REACTIONS

The most common adverse reactions (≥1%) are diarrhea, reflux esophagitis, malaise, jaundice, skin lesion, nausea, abdominal pain, intestinal polyp, urinary tract infection, and peripheral neuropathy. Please see full Prescribing Information for additional Important Safety Information.

About CTEXLI® (chenodiol) tablets

CTEXLI® (chenodiol) tablets is FDA-approved for the treatment of adults with cerebrotendinous xanthomatosis (CTX). Chenodiol is another name for chenodeoxycholic acid (CDCA). CDCA is a naturally occurring bile acid that was originally approved for the treatment of people with radiolucent stones in the gallbladder. CTEXLI was evaluated as part of the Phase 3 RESTORE study, the first and only clinical trial for CTX. CTX is a rare progressive disease that can affect the brain, spinal cord, tendons, eyes and arteries.

IMPORTANT SAFETY INFORMATION

CTEXLI can cause side effects, including:

Liver Injury: You will need to undergo laboratory testing before starting and while taking CTEXLI to check your liver function. Changes in certain liver tests may occur during treatment and may be a sign of liver injury. This can be serious. Stop taking CTEXLI immediately and tell your healthcare provider right away if you get any signs or symptoms of liver problems, including, stomach (abdomen) pain, bruising, dark-colored urine, feeling tired (fatigue), bleeding, yellowing of the skin and eyes, nausea, and itching.

Most Common Side Effects: Diarrhea, headache, stomach pain, constipation, high blood pressure, muscular weakness, and upper respiratory tract infection.

Tell your healthcare provider about all the medications that you take, as CTEXLI may interact with other medicines.

US Prescribing Information

About Volixibat

Volixibat is an investigational oral, minimally absorbed agent designed to selectively inhibit the ileal bile acid transporter (IBAT). Volixibat may offer a novel approach in the treatment of adult cholestatic diseases by blocking the recycling of bile acids through inhibition of IBAT, thereby reducing bile acids systemically and in the liver. Volixibat is currently being evaluated in Phase 2b studies for primary sclerosing cholangitis (PSC) (VISTAS study), and primary biliary cholangitis (PBC) (VANTAGE study).

In 2026, Mirum shared that the Phase 2b VISTAS study of volixibat in PSC met its primary endpoint, with statistically significant and clinically meaningful reductions in pruritus observed in patients treated with volixibat. Volixibat’s safety profile in the study was generally consistent with the known effects of IBAT inhibition. Volixibat has been granted FDA Breakthrough Therapy designation for the treatment of cholestatic pruritus due to PSC.

In 2024, Mirum announced positive interim results from the Phase 2b VANTAGE study of volixibat in PBC. No new safety signals were observed in the study. Volixibat has been granted FDA Breakthrough Therapy designation for the treatment of cholestatic pruritus due to PBC.

About Brelovitug

Brelovitug is an investigational, highly potent, pan-genotypic, fully human immunoglobulin G1 (IgG1) monoclonal antibody (mAb) that targets the surface antigen (anti-HBsAg) on both the hepatitis delta virus (HDV) and the hepatitis B virus (HBV). Brelovitug is designed to neutralize and remove hepatitis B and hepatitis D virions and deplete HBsAg-containing subviral particles. Brelovitug has FDA Breakthrough Therapy designation for the treatment of chronic HDV infection and PRIME and Orphan designations from the European Medicines Agency.

In 2026, Mirum announced that in the Phase 2b portion of the AZURE-1 study in HDV, treatment with brelovitug demonstrated strong antiviral activity in HDV and achieved the primary composite endpoint of virologic response and alanine aminotransferase (ALT) normalization at Week 24 in both brelovitug dose arms as compared to the delayed treatment arm. Favorable safety and tolerability profiles were observed. Brelovitug is currently being evaluated in the global Phase 3 AZURE clinical program. Mirum owns worldwide rights to brelovitug.

About Zilurgisertib

Zilurgisertib is an investigational, oral, small molecule, activin receptor-like kinase 2 (ALK2) inhibitor in development for the treatment of Fibrodysplasia Ossificans Progressiva (FOP). Zilurgisertib is designed to inhibit the ALK2 receptor, which is abnormally active in most patients with FOP and leads to bone formation in soft tissues, a process known as heterotopic ossification (HO). FOP is an ultra-rare genetic disease that affects approximately 300 patients in the U.S. and 900 worldwide, with diagnosis typically occurring in early childhood. Zilurgisertib was evaluated in the PROGRESS pivotal Phase 2 study, which formed the basis of a new drug application (NDA). The FDA has accepted the NDA for zilurgisertib in FOP under Priority Review with a Prescription Drug User Fee Act (PDUFA) date of September 26, 2026.

Mirum Pharmaceuticals, Inc. licensed zilurgisertib from Incyte for worldwide development and commercialization.

About MRM-3379

MRM-3379 is an in-licensed investigational oral therapy being evaluated for the treatment of Fragile X syndrome (FXS). It is a selective phosphodiesterase-4D (PDE4D) inhibitor designed to enhance cAMP signaling. MRM-3379 may offer a novel approach to improving cognition, language, and daily function in individuals with FXS. MRM-3379 has been granted FDA Fast Track designation for the treatment of FXS.

The BLOOM Phase 2 clinical study of MRM-3379 is currently underway in FXS. Males ages 16 to 45 will be randomly assigned to receive one of three dose levels of MRM-3379 or placebo for 12 weeks. An open-label cohort of boys ages 13 to 16 will receive the lowest dose, in order to explore effects of treatment in younger boys, closer to the age of diagnosis. The study’s primary endpoint is safety and tolerability, the key secondary endpoint is the NIH Toolbox Crystallized Cognition Composite (CCC), and several exploratory endpoints will assess potential effects on mood, behavior, and other symptoms that are relevant to this population. Mirum owns worldwide rights to MRM-3379.

About Mirum Pharmaceuticals

Mirum Pharmaceuticals (NASDAQ: MIRM) is a leading rare disease company with a global footprint of approved products and a broad pipeline of investigational medicines. Purpose-built to bring forward breakthrough medicines for people with overlooked conditions, Mirum focuses on rare liver and rare genetic diseases, where it has built deep expertise and strong connections to patient communities. The company’s commercial portfolio includes LIVMARLI® (maralixibat) for Alagille syndrome (ALGS) and progressive familial intrahepatic cholestasis (PFIC), CHOLBAM® (cholic acid) for bile-acid synthesis disorders, and CTEXLI® (chenodiol) for cerebrotendinous xanthomatosis (CTX).

Mirum’s clinical-stage pipeline includes volixibat, an IBAT inhibitor in late-stage development for primary sclerosing cholangitis (PSC) and primary biliary cholangitis (PBC), brelovitug, a fully human monoclonal antibody in late-stage development for chronic hepatitis delta virus (HDV), zilurgisertib, an ALK2 inhibitor under regulatory review with the FDA for fibrodysplasia ossificans progressiva (FOP), and MRM-3379, a PDE4D inhibitor being evaluated for Fragile X syndrome (FXS).

Mirum’s success is driven by a team dedicated to advancing high impact medicines through strategic development, disciplined execution and purposeful collaboration across the rare disease ecosystem. Learn more at www.mirumpharma.com and follow Mirum on Facebook, LinkedIn, Instagram and X.

Forward-Looking Statements

Statements contained in this press release regarding matters that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements regarding, among other things, commercial results for our approved products, including continued growth in year-over-year net product sales, achievement of our 2026 financial guidance, our anticipated successes in 2026, including continued commercial momentum, the results, enrollment, conduct and progress of our ongoing and planned studies for our product candidates, including the timing and results of interim and topline analyses of our ongoing studies, the occurrence, timing and results of our discussions with the FDA regarding volixibat, potential submission and approval of NDA filings, the timing of any submissions and approvals of NDA filings and the potential commercial launch of our product candidates. Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Words such as “anticipate,” “expected,” “will,” “could,” “would,” “guidance,” “target,” “intend,” “plan,” “potential” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are based upon Mirum’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results could differ materially from those anticipated in such forward-looking statements as a result of various risks and uncertainties, which include, without limitation, risks and uncertainties associated with Mirum’s business in general, risks and uncertainties associated with pharmaceutical development and commercialization in general, the impact of geopolitical and macroeconomic events, and the other risks described in Mirum’s Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent filings with the Securities and Exchange Commission. All forward-looking statements contained in this press release speak only as of the date on which they were made and are based on management’s assumptions and estimates as of such date. Mirum undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.

Mirum and the Mirum logo are trademarks of Mirum Pharmaceuticals, Inc.

 

Mirum Pharmaceuticals, Inc.

Condensed Consolidated Statement of Operations Data

(in thousands, except share and per share amounts)

(Unaudited)
 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

Product sales, net

$

176,243

 

 

$

127,785

 

 

$

336,125

 

 

$

239,370

 

Operating expenses:

 

 

 

 

 

 

 

Cost of sales (1)

 

30,348

 

 

 

23,421

 

 

 

59,153

 

 

 

46,439

 

Research and development

 

90,528

 

 

 

46,067

 

 

 

188,438

 

 

 

87,111

 

Acquired in-process research and development

 

16,435

 

 

 

—

 

 

 

742,737

 

 

 

5,000

 

Selling, general and administrative

 

81,469

 

 

 

63,286

 

 

 

177,799

 

 

 

120,992

 

Total operating expenses (2)

 

218,780

 

 

 

132,774

 

 

 

1,168,127

 

 

 

259,542

 

Loss from operations

 

(42,537

)

 

 

(4,989

)

 

 

(832,002

)

 

 

(20,172

)

Other income (expense):

 

 

 

 

 

 

 

Interest income

 

3,851

 

 

 

3,033

 

 

 

7,252

 

 

 

6,056

 

Interest expense

 

(2,618

)

 

 

(3,589

)

 

 

(6,234

)

 

 

(7,185

)

Other (expense) income, net

 

(24,234

)

 

 

86

 

 

 

(24,234

)

 

 

2,194

 

Net loss before provision for income taxes

 

(65,538

)

 

 

(5,459

)

 

 

(855,218

)

 

 

(19,107

)

Provision for income taxes

 

1,689

 

 

 

402

 

 

 

2,164

 

 

 

1,431

 

Net loss

$

(67,227

)

 

$

(5,861

)

 

$

(857,382

)

 

$

(20,538

)

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

$

(1.06

)

 

$

(0.12

)

 

$

(14.03

)

 

$

(0.42

)

Weighted-average shares of common stock used to compute net loss per share, basic and diluted

 

63,374,183

 

 

 

49,726,823

 

 

 

61,125,097

 

 

 

49,310,255

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Amounts include intangible amortization expense as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intangible amortization

$

6,685

 

 

$

5,894

 

 

$

13,370

 

 

$

11,788

 

 

 

 

 

 

 

 

 

(2) Amounts include stock-based compensation expense as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

$

461

 

 

$

238

 

 

$

809

 

 

$

569

 

Research and development

 

14,227

 

 

 

7,624

 

 

 

38,416

 

 

 

12,853

 

Selling, general and administrative

 

15,887

 

 

 

10,606

 

 

 

48,824

 

 

 

20,849

 

Total stock-based compensation

$

30,575

 

 

$

18,468

 

 

$

88,049

 

 

$

34,271

 
 

Mirum Pharmaceuticals, Inc.

Condensed Consolidated Balance Sheet Data

(in thousands)

(Unaudited)
 

 

June 30, 2026

 

December 31, 2025

 

 

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

330,728

 

 

$

296,683

 

Short-term investments

 

107,563

 

 

 

86,644

 

Accounts receivable

 

145,360

 

 

 

123,330

 

Inventory

 

25,769

 

 

 

24,887

 

Prepaid expenses and other current assets

 

26,890

 

 

 

18,140

 

Total current assets

 

636,310

 

 

 

549,684

 

Restricted cash

 

1,734

 

 

 

1,482

 

Long-term investments

 

123,030

 

 

 

8,105

 

Intangible assets, net

 

247,388

 

 

 

260,921

 

Other noncurrent assets

 

36,519

 

 

 

22,621

 

Total assets

$

1,044,981

 

 

$

842,813

 

Liabilities and Stockholders’ (Deficit) Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

23,427

 

 

$

9,614

 

Holdback liabilities, current

 

24,800

 

 

 

—

 

Accrued expenses and other current liabilities

 

174,561

 

 

 

196,185

 

Total current liabilities

 

222,788

 

 

 

205,799

 

Operating lease liabilities, noncurrent

 

10,465

 

 

 

7,516

 

Convertible notes payable, net, noncurrent

 

750,079

 

 

 

309,797

 

Holdback liabilities, noncurrent

 

61,154

 

 

 

—

 

Other liabilities

 

10,917

 

 

 

5,011

 

Total liabilities

 

1,055,403

 

 

 

528,123

 

Commitments and contingencies

 

 

 

Stockholders’ (deficit) equity:

 

 

 

Preferred stock

 

—

 

 

 

—

 

Common stock

 

6

 

 

 

5

 

Additional paid-in capital

 

1,515,172

 

 

 

981,878

 

Accumulated deficit

 

(1,524,926

)

 

 

(667,544

)

Accumulated other comprehensive (loss) income

 

(674

)

 

 

351

 

Total stockholders’ (deficit) equity

 

(10,422

)

 

 

314,690

 

Total liabilities and stockholders’ (deficit) equity

$

1,044,981

 

 

$

842,813

 

 

Investor Contact:

Andrew McKibben

[email protected]

Media Contact:

Meredith Kiernan

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Health Genetics Research Pharmaceutical Science Biotechnology

MEDIA:

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Symbotic Reports Third Quarter Fiscal Year 2026 Results

Steve Pagliuca, Former Co-Chair of Bain Capital, Elected to Symbotic’s Board of Directors

WILMINGTON, Mass., Aug. 05, 2026 (GLOBE NEWSWIRE) — Symbotic Inc. (Nasdaq: SYM), a leader in A.I.-enabled robotics technology for the supply chain, announced financial results for its third quarter of fiscal year 2026, which ended on June 27, 2026. Symbotic reported revenue of $721 million, up 22% year-over-year, and net income of $55 million, compared with a net loss of $21 million in the third quarter of fiscal year 2025. Adjusted EBITDA1 reached $95 million, more than double the $45 million in the third quarter of fiscal year 2025.

Cash and cash equivalents totaled $1.7 billion at the end of the third quarter of fiscal year 2026, down from $2.0 billion at the end of the second quarter of fiscal year 2026.

“We are well on track to deliver against our key objectives for our fiscal year,” said Rick Cohen, Symbotic Chairman and Chief Executive Officer. “Importantly, we are seeing increasing opportunities to broaden the scope of our work with existing and prospective customers.”

“We delivered another quarter of growth and a large expansion in our profitability,” said Izzy Martins, Symbotic Chief Financial Officer. “Looking ahead, we see a continuation of our profitable growth trajectory supported by 77 systems in deployment.”

OUTLOOK

For the fourth quarter of fiscal 2026, Symbotic expects revenue of $760 million to $780 million, and adjusted EBITDA2 of $100 million to $105 million.

WEBCAST INFORMATION

Symbotic will host a webcast today at 5:00 pm ET to discuss its third quarter fiscal year 2026 results. The webcast link is: https://edge.media-server.com/mmc/go/symbotic-q3-2026.

NEW BOARD MEMBER

Symbotic also announced the election of Steve Pagliuca to its Board of Directors, effective August 4, 2026.

Mr. Pagliuca is the Founder and CEO of PagsGroup, a growth capital investment firm with expertise in biotech, technology, media, and sports. He is also a Chairman and Principal Owner of Atalanta B.C. football club. Previously, he was a Managing General Partner and Co-Owner of the Boston Celtics, where he served as Chairman of the Basketball Committee and as Founder and President of the Boston Celtics Shamrock Foundation. He is also a former Co-Chair of Bain Capital, where he continues to serve as a Senior Advisor.

“I am delighted to welcome Steve to our Board of Directors,” said Cohen. “He brings an exceptional track record of helping high-growth companies scale, navigate complex markets, and create lasting value. His strategic insight and experience building world-class organizations will strengthen our Board as we enter our next phase of growth.”

ABOUT SYMBOTIC

Symbotic is an automation technology leader reimagining the supply chain with its end-to-end, A.I.-powered robotic and software platform. Symbotic reinvents the warehouse as a strategic asset for the world’s largest retail, wholesale, food & beverage, and medical supply distribution companies. Applying next-generation technology, high-density storage and machine learning to solve today’s complex distribution challenges, Symbotic enables companies to move goods with unmatched speed, agility, accuracy and efficiency. As the backbone of commerce, Symbotic transforms the flow of goods and the economics of the supply chain for its customers. For more information, visit www.symbotic.com.

USE OF NON-GAAP FINANCIAL INFORMATION

Symbotic reports its financial results in accordance with Generally Accepted Accounting Principles in the United States (“U.S. GAAP”). This press release contains financial measures that are not recognized under U.S. GAAP (“non-GAAP financial measures”), including adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, adjusted research and development expenses, adjusted selling, general, and administrative expenses, and free cash flow. These non-GAAP financial measures have limitations as an analytical tool as they do not have a standardized meaning prescribed by U.S. GAAP. The non-GAAP financial measures Symbotic uses may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies and, therefore, are unlikely to be comparable to similar measures presented by other companies. Rather, these non-GAAP financial measures are provided as a supplement to corresponding U.S. GAAP measures to provide additional information regarding the results of operations from management’s perspective. Accordingly, non-GAAP financial measures should not be considered a substitute for, in isolation from, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. All non-GAAP financial measures presented in this press release are reconciled to their closest reported U.S. GAAP financial measures. Symbotic recommends that investors review the reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures provided in the financial statement tables included below in this press release, and not rely on any single financial measure to evaluate its business.

Symbotic defines adjusted EBITDA, a non-GAAP financial measure, as GAAP net income (loss) excluding the following items: interest income; income taxes; depreciation and amortization of tangible and intangible assets; stock-based compensation; business combination transaction expenses; equity method investment; internal control remediation; business transformation costs; fair value adjustments on strategic investments; restructuring charges; and other infrequent items that may arise from time to time. Symbotic defines adjusted gross profit, a non-GAAP financial measure, as GAAP gross profit excluding the following items: depreciation, stock-based compensation, and restructuring charges. Symbotic defines adjusted gross profit margin, a non-GAAP financial measure, as adjusted gross profit divided by total revenue. Symbotic defines adjusted research and development expenses, a non-GAAP financial measure, as GAAP research and development expenses excluding the following items: depreciation and amortization of tangible and intangible assets and stock-based compensation. Symbotic defines adjusted selling, general, and administrative expenses, a non-GAAP financial measure, as GAAP selling, general, and administrative expenses excluding the following items: depreciation and amortization of tangible and intangible assets; stock-based compensation; business combination transaction expenses; internal control remediation; business transformation costs; and other infrequent items that may arise from time to time. Symbotic defines free cash flow, a non-GAAP financial measure, as net cash provided by or used in operating activities less purchases of property and equipment and capitalization of internal use software development costs. In addition to Symbotic’s financial results determined in accordance with U.S. GAAP, Symbotic believes that adjusted EBITDA, adjusted gross profit, adjusted gross profit margin, adjusted research and development expenses, adjusted selling, general, and administrative expenses, and free cash flow non-GAAP financial measures, are useful in evaluating the performance of Symbotic’s business because they highlight trends in its core business.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, Symbotic’s expectations or predictions of future financial or business performance or conditions. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning our possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates” or “intends” or similar expressions.

Forward-looking statements include, but are not limited to, statements about our ability to or expectations regarding Symbotic to:

  • meet the technical requirements of existing or future agreements with its customers, including with respect to existing backlog;
  • expand its target customer base and maintain its existing customer base;
  • realize the benefits expected from its GreenBox Systems LLC joint venture, which is now doing business as Exol (“Exol”), the commercial agreement with Exol, the commercial agreement with Nueva Wal Mart de México, S. de R.L. de C.V and the acquisition of the Advanced Systems and Robotics business from Walmart;
  • realize its outlook, including its system gross margin;
  • manage the timing and cost of any product replacement, programs and related recalls;
  • anticipate industry trends;
  • maintain and enhance its systems;
  • execute its growth strategy;
  • develop, design and sell systems that are differentiated from those of competitors;
  • execute its research and development strategy;
  • acquire, maintain, protect and enforce intellectual property;
  • attract, train and retain effective officers, key employees or directors;
  • comply with laws and regulations applicable to its business;
  • stay abreast of modified or new laws and regulations applying to its business;
  • successfully defend litigation;
  • issue equity securities in connection with future transactions;
  • meet future liquidity requirements and, if applicable, comply with restrictive covenants related to long-term indebtedness;
  • timely and effectively remediate any material weaknesses in its internal control over financial reporting;
  • anticipate rapid technological changes;
  • maintain the listing of the Symbotic common stock on Nasdaq; and
  • effectively respond to general economic and business conditions.

Forward-looking statements also include, but are not limited to, statements with respect to:

  • the future performance of Symbotic’s business and operations;
  • expectations regarding revenues, expenses, adjusted EBITDA and anticipated cash needs;
  • expectations regarding cash flow, liquidity and sources of funding;
  • expectations regarding capital expenditures;
  • the anticipated benefits of Symbotic’s leadership structure;
  • the effects of pending and future legislation;
  • the effects of inflation, prevailing price levels, exchange rates, changes in trade agreements and trade protection measures including tariffs and other economic factors;
  • the direct and indirect effects of geopolitical conditions in the United States and in global economies, including those resulting from acts of war and conflicts and responses to such events;
  • business disruption;
  • disruption to the business due to Symbotic’s dependency on Walmart;
  • increasing competition in the warehouse automation industry;
  • any delays in the design, production or launch of Symbotic’s systems and products;
  • the failure to meet customers’ requirements under existing or future contracts or customers’ expectations as to price or pricing structure;
  • any defects in new products or enhancements to existing products;
  • the fluctuation of operating results from period to period due to a number of factors, including the pace of customer adoption of Symbotic’s new products and services and any changes in its product mix that shift too far into lower gross margin products; and
  • any consequences associated with joint ventures and legislative and regulatory actions and reforms.

Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed in Symbotic’s Annual Report on Form 10-K for the fiscal year ended September 27, 2025, filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 24, 2025. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. These forward-looking statements are expressed in good faith, and Symbotic believes there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements are provided for the purposes of assisting the reader in understanding its financial performance, financial position and cash flows as of and for periods ended on certain dates and to present information about management’s current expectations and plans relating to the future, and the reader is cautioned not to place undue reliance on these forward-looking statements because of their inherent uncertainty and to appreciate the limited purposes for which they are being used by management. While Symbotic believes that the assumptions and expectations reflected in the forward-looking statements are reasonable based on information currently available to management, there is no assurance that such assumptions and expectations will prove to have been correct.

The forward-looking statements relate only to events as of the date on which the statements are made and are based on the beliefs, estimates, expectations and opinions of management on that date. Symbotic is not under any obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that Symbotic has filed or will file from time to time with the SEC.

Any financial projections in this press release or discussed in the webcast are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond Symbotic’s control. While all projections are necessarily speculative, Symbotic believes that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection extends from the date of preparation. The assumptions and estimates underlying the projected results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projections. The inclusion of projections in this communication should not be regarded as an indication that Symbotic, or its representatives, considered or considers the projections to be a reliable prediction of future events.

Annualized and estimated numbers are not forecasts and may not reflect actual results.

This communication is not intended to be all-inclusive or to contain all the information that a person may desire in considering an investment in Symbotic and is not intended to form the basis of an investment decision in Symbotic. The forward-looking statements contained in this press release and other reports we file with, or furnish to, the SEC and other regulatory agencies and made by our directors, officers, other employees and other persons authorized to speak on our behalf are expressly qualified in their entirety by these cautionary statements.

INVESTOR RELATIONS CONTACT

Charlie Anderson
Vice President, Investor Relations & Corporate Development
[email protected]

MEDIA INQUIRIES

[email protected]

Symbotic Inc. and Subsidiaries

Consolidated Statements of Operations
 
  Three Months Ended   Nine Months Ended
(in thousands, except share and per share data) June 27, 2026   March 28,
2026 		  June 28, 2025   June 27, 2026   June 28, 2025
Revenue:                  
Systems $ 670,952     $ 634,496     $ 559,108     $ 1,895,740     $ 1,536,539  
Software maintenance and support   12,765       12,924       8,121       36,574       20,331  
Operation services   37,121       29,060       24,892       94,989       71,595  
   Total revenue   720,838       676,480       592,121       2,027,303       1,628,465  
Cost of revenue:                  
Systems   523,607       495,551       453,967       1,489,031       1,246,745  
Software maintenance and support   3,486       3,368       1,705       9,808       5,593  
Operation services   32,835       27,609       24,607       84,178       72,476  
   Total cost of revenue   559,928       526,528       480,279       1,583,017       1,324,814  
Gross profit   160,910       149,952       111,842       444,286       303,651  
Operating expenses:                  
Research and development expenses   43,780       51,283       49,729       138,069       150,967  
Selling, general, and administrative expenses   84,235       92,566       71,557       258,020       205,567  
Restructuring charges   —       12       16,361       2,685       16,361  
   Total operating expenses   128,015       143,861       137,647       398,774       372,895  
Operating income (loss)   32,895       6,091       (25,805 )     45,512       (69,244 )
Other income, net   30,587       10,855       8,451       54,688       27,987  
Income (loss) before income tax and equity method investment   63,482       16,946       (17,354 )     100,200       (41,257 )
Income tax benefit (expense)   1,149       (572 )     (44 )     (38 )     1,204  
Loss from equity method investment   (9,631 )     (6,945 )     (3,776 )     (22,375 )     (7,831 )
Net income (loss)   55,000       9,429       (21,174 )     77,787       (47,884 )
Net income (loss) attributable to noncontrolling interests   43,327       7,460       (17,251 )     61,543       (38,982 )
Net income (loss) attributable to common stockholders $ 11,673     $ 1,969     $ (3,923 )   $ 16,244     $ (8,902 )
                   
Income (loss) per share of Class A Common Stock:                  
Basic $ 0.09     $ 0.02     $ (0.04 )   $ 0.13     $ (0.08 )
Diluted $ 0.09     $ 0.01     $ (0.04 )   $ 0.12     $ (0.08 )
Weighted-average shares of Class A Common Stock outstanding:                  
Basic   128,076,383       125,538,207       109,201,745       123,029,814       107,664,864  
Diluted   133,252,947       134,364,904       109,201,745       131,666,538       107,664,864  

Symbotic Inc. and Subsidiaries

Reconciliation of Non-GAAP Financial Measures
 
The following table reconciles GAAP net income (loss) to Adjusted EBITDA:
 
  Three Months Ended   Nine Months Ended
(in thousands) June 27, 2026   March 28, 2026   June 28, 2025   June 27, 2026   June 28, 2025
Net income (loss) $ 55,000     $ 9,429     $ (21,174 )   $ 77,787     $ (47,884 )
Interest income   (11,335 )     (10,906 )     (8,373 )     (33,840 )     (23,371 )
Income tax expense (benefit)   (1,149 )     572       44       38       (1,204 )
Depreciation and amortization   10,241       11,322       12,940       30,249       30,969  
Stock-based compensation   50,519       57,188       39,527       151,824       102,984  
Business combination transaction expenses   244       710       422       965       7,522  
Equity method investment   9,631       6,945       3,776       22,375       7,831  
Internal control remediation   1,486       1,931       1,795       5,832       7,046  
Business transformation costs   54       550       75       3,134       2,475  
Fair value adjustments on strategic investments   (19,378 )     —       —       (21,039 )     (4,481 )
Restructuring charges   (76 )     12       16,361       2,560       16,130  
Adjusted EBITDA $ 95,237     $ 77,753     $ 45,393     $ 239,885     $ 98,017  

The following table reconciles GAAP gross profit to Adjusted gross profit:
 
  Three Months Ended
   Nine Months Ended
(in thousands) June 27, 2026   March 28, 2026
   June 28, 2025
   June 27, 2026   June 28, 2025
Gross profit $ 160,910     $ 149,952     $ 111,842     $ 444,286     $ 303,651  
Depreciation and amortization   1,507       1,614       3,538       4,603       8,957  
Stock-based compensation   17,545       14,208       11,813       44,424       22,844  
Restructuring charges   (76 )     —       —       (124 )     (231 )
Adjusted gross profit $ 179,886     $ 165,774     $ 127,193     $ 493,189     $ 335,221  

Gross profit margin 22.3 %   22.2 %   18.9 %   21.9 %   18.6 %
Adjusted gross profit margin 25.0 %   24.5 %   21.5 %   24.3 %   20.6 %

The following table reconciles GAAP research and development expenses to Adjusted research and development expenses:
 
  Three Months Ended   Nine Months Ended
(in thousands) June 27, 2026   March 28, 2026   June 28, 2025   June 27, 2026   June 28, 2025
Research and development expenses $ 43,780     $ 51,283     $ 49,729     $ 138,069     $ 150,967  
Depreciation and amortization   (5,959 )     (5,161 )     (7,133 )     (16,110 )     (15,044 )
Stock-based compensation   (8,642 )     (17,123 )     (10,442 )     (33,686 )     (34,408 )
Adjusted research and development expenses $ 29,179     $ 28,999     $ 32,154     $ 88,273     $ 101,515  

The following table reconciles GAAP selling, general, and administrative expenses to Adjusted selling, general, and administrative expenses:
 
  Three Months Ended   Nine Months Ended
(in thousands) June 27, 2026   March 28, 2026   June 28, 2025   June 27, 2026   June 28, 2025
Selling, general, and administrative expenses $ 84,235     $ 92,566     $ 71,557     $ 258,020     $ 205,567  
Depreciation and amortization   (2,775 )     (4,547 )     (2,270 )     (9,537 )     (6,969 )
Stock-based compensation   (24,332 )     (25,857 )     (17,272 )     (73,714 )     (45,731 )
Business combination transaction expenses   (244 )     (710 )     (422 )     (965 )     (7,522 )
Internal control remediation   (1,486 )     (1,931 )     (1,795 )     (5,832 )     (7,046 )
Business transformation costs   (54 )     (550 )     (75 )     (3,134 )     (2,475 )
Adjusted selling, general, and administrative expenses $ 55,344     $ 58,971     $ 49,723     $ 164,838     $ 135,824  
 

The following table reconciles GAAP net cash provided by (used in) operating activities to free cash flow:
 
  Three Months Ended   Nine Months Ended
(in thousands) June 27, 2026   March 28, 2026   June 28, 2025   June 27, 2026   June 28, 2025
          Revised3       Revised3
Net cash provided by (used in) operating activities $ (147,297 )   $ 261,341     $ (196,512 )   $ 305,584     $ 278,090  
Purchases of property and equipment and capitalization of internal use software development costs   (17,333 )     (43,368 )     (14,867 )     (62,753 )     (42,784 )
Free cash flow $ (164,630 )   $ 217,973     $ (211,379 )   $ 242,831     $ 235,306  

Symbotic Inc. and Subsidiaries

Supplemental Common Share Information
 
Total Common Shares issued and outstanding:
 
  June 27, 2026


 		  September 27, 2025
Class A Common Shares issued and outstanding 128,931,651     112,635,932  
Class V-1 Common Shares issued and outstanding 71,373,131     74,693,311  
Class V-3 Common Shares issued and outstanding 403,559,196     403,559,196  
  603,863,978     590,888,439  



Symbotic Inc. and Subsidiaries

Consolidated Balance Sheets
 
(in thousands, except share data) June 27, 2026   September 27, 2025
ASSETS
Current assets:      
Cash and cash equivalents $ 1,746,446     $ 1,244,993  
Accounts receivable   288,533       186,705  
Unbilled accounts receivable   459,843       181,658  
Inventories   220,841       164,390  
Deferred expenses   59,063       20,532  
Prepaid expenses and other current assets   83,060       86,582  
   Total current assets   2,857,786       1,884,860  
Property and equipment, net   158,575       117,649  
Intangible assets, net   83,245       79,149  
Goodwill   59,871       59,871  
Equity method investment   140,468       123,034  
Other assets   224,174       131,166  
   Total assets $ 3,524,119     $ 2,395,729  
LIABILITIES AND EQUITY
Current liabilities:      
Accounts payable $ 327,807     $ 286,669  
Accrued expenses and other current liabilities   265,517       200,442  
Deferred revenue   1,553,749       1,242,312  
   Total current liabilities   2,147,073       1,729,423  
Deferred revenue   182,810       124,932  
Other liabilities   60,270       63,629  
   Total liabilities   2,390,153       1,917,984  
Commitments and contingencies   —       —  
Equity:      
Class A Common Stock, 3,000,000,000 shares authorized, 128,931,651 and 112,635,932 shares issued and outstanding at June 27, 2026 and September 27, 2025, respectively   15       13  
Class V-1 Common Stock, 1,000,000,000 shares authorized, 71,373,131 and 74,693,311 shares issued and outstanding at June 27, 2026 and September 27, 2025, respectively   7       7  
Class V-3 Common Stock, 450,000,000 shares authorized, 403,559,196 shares issued and outstanding at June 27, 2026 and September 27, 2025   40       40  
Additional paid-in capital   2,028,978       1,556,611  
Accumulated deficit   (1,317,539 )     (1,333,783 )
Accumulated other comprehensive loss   (2,732 )     (2,695 )
Total stockholders’ equity   708,769       220,193  
Noncontrolling interest   425,197       257,552  
Total equity   1,133,966       477,745  
Total liabilities and equity $ 3,524,119     $ 2,395,729  

Symbotic Inc. and Subsidiaries

Consolidated Statements of Cash Flows
 
  Three Months Ended   Nine Months Ended
(in thousands) June 27, 2026   March 28, 2026   June 28, 2025   June 27, 2026   June 28, 2025
          Revised4       Revised4
Cash flows from operating activities:                  
Net income (loss) $ 55,000     $ 9,429     $ (21,174 )   $ 77,787     $ (47,884 )
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:                  
Depreciation and amortization   10,250       11,323       12,941       30,277       30,954  
Amortization of leases   (2,968 )     2,536       1,261       956       3,172  
Loss from equity method investment   9,631       6,945       3,776       22,375       7,831  
Foreign currency losses (gains)   —       31       (61 )     58       (73 )
Loss on disposal of assets   76       —       —       76       201  
Provision for excess and obsolete inventory   4,241       4,753       3,921       13,826       4,901  
Deferred taxes, net   —       —       —       —       —  
Stock-based compensation   48,429       48,549       36,803       142,919       92,322  
Gain from strategic investment fair value adjustment   (19,378 )     —       —       (21,039 )     (4,481 )
Changes in operating assets and liabilities:                  
Accounts receivable   (155,934 )     (24,487 )     1,389       (101,331 )     65,570  
Inventories   (23,839 )     (23,184 )     3,470       (71,145 )     (30,187 )
Prepaid expenses and other current assets   (4,566 )     (209,544 )     (48,390 )     (265,836 )     52,779  
Deferred expenses   (15,526 )     (15,731 )     27,503       (38,532 )     23,582  
Other assets   26,009       7,288       (54,449 )     35,632       (61,928 )
Accounts payable   33,441       41,661       (4,407 )     51,245       40,544  
Accrued expenses and other current liabilities   13,620       41,334       12,532       63,672       (7,613 )
Deferred revenue   (123,829 )     360,362       (171,331 )     368,777       117,288  
Other liabilities   (1,954 )     76       (296 )     (4,133 )     (8,888 )
   Net cash provided by (used in) operating activities   (147,297 )     261,341       (196,512 )     305,584       278,090  
Cash flows from investing activities:                  
Purchases of property and equipment and capitalization of internal use software development costs   (17,333 )     (43,368 )     (14,867 )     (62,753 )     (42,784 )
Acquisitions of strategic investments   (73,420 )     (11,299 )     (24,233 )     (123,247 )     (42,225 )
Cash paid for business and asset acquisitions   —       (20,157 )     58,169       (20,157 )     (141,831 )
   Net cash used in investing activities   (90,753 )     (74,824 )     19,069       (206,157 )     (226,840 )
Cash flows from financing activities:                  
   Payment for taxes related to net share settlement of stock-based compensation awards   —       —       —       —       (3,012 )
   Net proceeds from issuance of common stock under employee stock purchase plan   —       3,898       —       3,898       3,233  
   Distributions to or on behalf of Symbotic Holdings LLC partners   14       —       57       (1,208 )     (1,175 )
   Proceeds from issuance of Class A common stock   —       (61 )     —       424,307       —  
   Net cash provided by (used in) financing activities   14       3,837       57       426,997       (954 )
Effect of exchange rate changes on cash, cash equivalents, and restricted cash   (31 )     (16 )     24       (39 )     (10 )
Net increase in cash, cash equivalents, and restricted cash   (238,067 )     190,338       (177,362 )     526,385       50,286  
Cash, cash equivalents, and restricted cash – beginning of period   2,011,645       1,821,307       958,002       1,247,193       730,354  
Cash, cash equivalents, and restricted cash – end of period $ 1,773,578     $ 2,011,645     $ 780,640     $ 1,773,578     $ 780,640  
                   
                   
  Three Months Ended   Nine Months Ended
(in thousands) June 27, 2026   March 28, 2026   June 28, 2025   June 27, 2026   June 28, 2025
Reconciliation of cash, cash equivalents, and restricted cash:                  
Cash and cash equivalents $ 1,746,446     $ 2,009,435     $ 777,576     $ 1,746,446     $ 777,576  
Restricted cash   27,132       2,210       3,064       27,132       3,064  
Cash, cash equivalents, and restricted cash $ 1,773,578     $ 2,011,645     $ 780,640     $ 1,773,578     $ 780,640  
 

1 Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is a non-GAAP financial measure as defined below under “Use of Non-GAAP Financial Information.” See the tables below for reconciliations to net income (loss), the most comparable GAAP measure.

2 Symbotic is not providing guidance for net income (loss), which is the most comparable GAAP financial measure to adjusted EBITDA, because information reconciling forward-looking adjusted EBITDA to net income (loss) is unavailable to it without unreasonable effort. Symbotic is not able to provide reconciliations of adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of Symbotic’s control and/or cannot be reasonably predicted, such as the provision for stock-based compensation.

3 Amounts for the nine months ended June 28, 2025 have been revised to reflect the reclassification of $58.2 million of cash flows related to the ASR acquisition from investing activities to operating activities. As a result, previously reported net cash provided by operating activities and free cash flow each decreased by $58.2 million, to $278.1 million and $235.3 million, respectively. The revision did not affect total cash flows, net loss, or earnings per share. See Note 2 to the Quarterly Report on Form 10-Q for the quarter ended June 27, 2026.

4 Amounts for the nine months ended June 28, 2025 have been revised to reflect the reclassification of $58.2 million of cash flows related to the ASR acquisition from investing activities to operating activities. As a result, previously reported net cash provided by operating activities and free cash flow each decreased by $58.2 million, to $278.1 million and $235.3 million, respectively. The revision did not affect total cash flows, net loss, or earnings per share. See Note 2 to the Quarterly Report on Form 10-Q for the quarter ended June 27, 2026.



Posted on

Forward Air Corporation Reports Second Quarter 2026 Results

Forward Air Corporation Reports Second Quarter 2026 Results

Reports Highest Quarterly Operating Revenue in Company History

Expedited Freight Segment Leads Strong Results with Best Operating Revenue, Operating Income, Reported EBITDA and Margin in Last Two and a Half Years

Liquidity Remains Robust at $401 Million

DALLAS–(BUSINESS WIRE)–
Forward Air Corporation (NASDAQ:FWRD) (the “Company,” “Forward,” “we,” “our,” or “us”) today reported financial results for the three months ended June 30, 2026, as presented in the tables below.

“We are pleased to deliver another solid quarter and we are seeing momentum from our transformational efforts, combined with an improving freight market,” said Shawn Stewart, President and Chief Executive Officer. “This contributed to reporting $673 million in consolidated operating revenue, which is the best in Forward Air Corporation’s history. Consolidated EBITDA for the quarter was $93 million, an improvement of $14 million, compared to $79 million a year ago.

“On a segment basis, the Expedited Freight segment made significant strides and reported its best operating revenue, operating income, Reported EBITDA and margin in the last two and a half years. The Omni Logistics segment saw an increase in demand for its contract logistics and air and ocean services and, excluding the impact of goodwill impairment, achieved its best Reported EBITDA and margin since the transaction in early 2024. Finally, the Intermodal segment had its best Reported EBITDA result in five quarters and best margin in six quarters. We believe the Intermodal segment is beginning to see the benefits of a strong pipeline and recently enacted strategic rate increases to several accounts.

“Our overall performance demonstrates the strength of our strategy, our portfolio of logistics offerings across a spectrum of services and the commitment and resilience of our team. As market conditions continue to improve, we remain focused on executing our plan and delivering sustainable, long-term value for our stakeholders,” concluded Stewart.

Jamie Pierson, Chief Financial Officer, added, “We reported consolidated operating revenue of $673 million in the second quarter compared to $619 million a year ago. In the second quarter, we reported an operating loss of $201 million that included a non-cash goodwill impairment charge of $244 million related to the Omni Logistics segment. Operating income, excluding the goodwill impairment charge, was $43 million, which is more than double the $20 million in operating income we reported in the second quarter last year.

“On a last twelve months basis Consolidated EBITDA, a non-GAAP measure calculated pursuant to our Term Loan Credit Agreement, was $319 million.

“Liquidity remained very strong at $401 million at the end of the second quarter comprised of $139 million in cash and $261 million of availability under our credit facility. This is in line with where we ended the first quarter 2026 and an improvement of $33 million compared to $368 million in total liquidity at the end of the second quarter 2025,” concluded Pierson.

 

Three Months Ended June 30,

 

 

 

 

(in thousands, except per share data)

2026

 

2025

 

$ Change

 

% Change

Operating revenues

$

673,036

 

 

$

618,844

 

 

$

54,192

 

 

8.8

%

Operating (loss) income

$

(201,312

)

 

$

19,522

 

 

$

(220,834

)

 

nm

Operating margin

 

(29.9

)%

 

 

3.2

%

 

(3,310) bps

 

 

 

 

 

 

 

 

Loss from continuing operations

$

(243,856

)

 

$

(20,364

)

 

$

(223,492

)

 

nm

Net loss from continuing per diluted share

$

(6.33

)

 

$

(0.41

)

 

$

(5.92

)

 

nm

Net cash (used in) provided by operating activities

$

(4,883

)

 

$

(13,217

)

 

$

8,334

 

 

63.1

%

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures: (1)

 

 

 

 

 

 

 

Consolidated EBITDA

$

92,985

 

 

$

79,081

 

 

$

13,904

 

 

17.6

%

Adjusted operating income

$

42,694

 

 

$

19,522

 

 

$

23,172

 

 

118.7

%

Free cash flow

$

(6,971

)

 

$

(17,157

)

 

$

10,186

 

 

59.4

%
 
(1) Reconciliation of these non-GAAP financial measures are provided below the financial tables.
nm = not meaningful

Review of Financial Results

Forward Air will hold a conference call to discuss second quarter 2026 results on Wednesday, August 5 at 4:30 p.m. ET. The Company’s conference call will be available online on the Investor Relations portion of the Company’s website at ir.forwardaircorp.com, or by dialing (800) 579-2543, Access Code: FWRDQ226.

A replay of the conference call will be available on the Investor Relations portion of the Company’s website at ir.forwardaircorp.com, which we use as a primary mechanism to communicate with our investors. Investors are urged to monitor the Investor Relations portion of the Company’s website to easily find or navigate to current and pertinent information about us.

About Forward Air Corporation

Forward is a leading asset-light provider of transportation services across the United States, Canada and Latin America. We provide expedited less-than-truckload services, including local pick-up and delivery, shipment consolidation/deconsolidation, warehousing, and customs brokerage by utilizing a comprehensive national network of terminals. In addition, we offer truckload brokerage services, including dedicated fleet services, and intermodal, first- and last-mile, high-value drayage services, both to and from seaports and railheads, dedicated contract and Container Freight Station warehouse and handling services. Forward also operates a full portfolio of multimodal solutions, both domestically and internationally, via Omni Logistics. Omni Logistics is a global provider of air, ocean and ground services for mission-critical freight. We are more than a transportation company. Forward is a single resource for your shipping needs. For more information, visit our website at www.forwardair.com.

 

Forward Air Corporation

Condensed Consolidated Statements of Operations

(unaudited and in thousands, except per share amounts)
 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2026

 

2025

 

2026

 

2025

Operating revenues:

 

 

 

 

 

 

 

Expedited Freight

$

319,062

 

 

$

257,696

 

 

$

591,769

 

 

$

507,077

 

Omni Logistics

 

338,547

 

 

 

328,316

 

 

 

640,965

 

 

 

651,786

 

Intermodal

 

59,724

 

 

 

59,146

 

 

 

112,816

 

 

 

121,638

 

Corporate and Eliminations

 

(44,297

)

 

 

(26,314

)

 

 

(90,468

)

 

 

(48,376

)

Operating revenues

 

673,036

 

 

 

618,844

 

 

 

1,255,082

 

 

 

1,232,125

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Purchased transportation

 

335,892

 

 

 

303,300

 

 

 

619,669

 

 

 

607,562

 

Salaries, wages and employee benefits

 

130,040

 

 

 

145,490

 

 

 

245,616

 

 

 

287,405

 

Operating leases

 

50,252

 

 

 

49,505

 

 

 

99,965

 

 

 

98,298

 

Depreciation and amortization

 

38,262

 

 

 

36,806

 

 

 

76,783

 

 

 

74,166

 

Insurance and claims

 

13,678

 

 

 

15,536

 

 

 

27,176

 

 

 

30,542

 

Fuel expense

 

6,644

 

 

 

5,278

 

 

 

11,571

 

 

 

10,927

 

Other operating expenses

 

55,574

 

 

 

43,407

 

 

 

111,167

 

 

 

98,940

 

Impairment of goodwill

 

244,006

 

 

 

—

 

 

 

244,006

 

 

 

—

 

Total operating expenses

 

874,348

 

 

 

599,322

 

 

 

1,435,953

 

 

 

1,207,840

 

 

 

 

 

 

 

 

 

Operating (loss) income:

 

 

 

 

 

 

 

Expedited Freight

 

34,893

 

 

 

19,495

 

 

 

54,939

 

 

 

35,129

 

Omni Logistics

 

(230,010

)

 

 

7,186

 

 

 

(229,280

)

 

 

10,561

 

Intermodal

 

6,101

 

 

 

4,415

 

 

 

7,325

 

 

 

9,957

 

Corporate and Eliminations

 

(12,296

)

 

 

(11,574

)

 

 

(13,855

)

 

 

(31,362

)

Operating (loss) income

 

(201,312

)

 

 

19,522

 

 

 

(180,871

)

 

 

24,285

 

 

 

 

 

 

 

 

 

Other income and expenses:

 

 

 

 

 

 

 

Interest expense, net

 

(43,721

)

 

 

(45,326

)

 

 

(87,308

)

 

 

(90,873

)

Foreign exchange (loss) gain

 

(566

)

 

 

(4,653

)

 

 

1,132

 

 

 

(5,575

)

Other income (expense), net

 

1,569

 

 

 

(6,656

)

 

 

(15,388

)

 

 

(6,552

)

Total other expense

 

(42,718

)

 

 

(56,635

)

 

 

(101,564

)

 

 

(103,000

)

 

 

 

 

 

 

 

 

Loss from continuing operations before income taxes

 

(244,030

)

 

 

(37,113

)

 

 

(282,435

)

 

 

(78,715

)

Income tax (benefit) expense

 

(174

)

 

 

(16,749

)

 

 

1,619

 

 

 

2,840

 

Loss from continuing operations

 

(243,856

)

 

 

(20,364

)

 

 

(284,054

)

 

 

(81,555

)

Loss from discontinued operations, net of tax

 

(2,075

)

 

 

—

 

 

 

(2,075

)

 

 

—

 

Net loss

 

(245,931

)

 

 

(20,364

)

 

 

(286,129

)

 

 

(81,555

)

Net loss attributable to noncontrolling interest

 

(38,631

)

 

 

(7,781

)

 

 

(44,510

)

 

 

(18,335

)

Net loss attributable to Forward Air

$

(207,300

)

 

$

(12,583

)

 

$

(241,619

)

 

$

(63,220

)

 

 

 

 

 

 

 

 

Basic and diluted net loss per share attributable to Forward Air:

 

 

 

 

 

 

 

Continuing operations

$

(6.33

)

 

$

(0.41

)

 

$

(7.49

)

 

$

(2.09

)

Discontinued operations

 

(0.05

)

 

 

—

 

 

 

(0.05

)

 

 

—

 

Net loss per basic and diluted share

$

(6.38

)

 

$

(0.41

)

 

$

(7.54

)

 

$

(2.09

)
 

Expedited Freight Segment Information and Operating Statistics

(unaudited and in thousands, except per shipment and per hundredweight)
 

 

Three Months Ended June 30,

 

 

 

 

 

2026

 

% of Revenue

 

2025

 

% of Revenue

 

$ Change

 

% Change

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

Network (1)

$

225,971

 

70.8

%

 

$

193,829

 

75.2

%

 

$

32,142

 

 

16.6

%

Truckload

 

69,237

 

21.7

%

 

 

42,636

 

16.5

%

 

 

26,601

 

 

62.4

%

Other

 

23,854

 

7.5

%

 

 

21,231

 

8.3

%

 

 

2,623

 

 

12.4

%

Total operating revenues

 

319,062

 

100.0

%

 

 

257,696

 

100.0

%

 

 

61,366

 

 

23.8

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

167,936

 

52.6

%

 

 

124,448

 

48.3

%

 

 

43,488

 

 

34.9

%

Salaries, wages and employee benefits

 

57,568

 

18.0

%

 

 

53,938

 

20.9

%

 

 

3,630

 

 

6.7

%

Operating leases

 

16,416

 

5.1

%

 

 

17,355

 

6.7

%

 

 

(939

)

 

(5.4

)%

Depreciation and amortization

 

8,495

 

2.7

%

 

 

10,357

 

4.0

%

 

 

(1,862

)

 

(18.0

)%

Insurance and claims

 

10,018

 

3.1

%

 

 

10,693

 

4.1

%

 

 

(675

)

 

(6.3

)%

Fuel expense

 

3,668

 

1.1

%

 

 

2,518

 

1.0

%

 

 

1,150

 

 

45.7

%

Other operating expenses

 

20,068

 

6.5

%

 

 

18,892

 

7.4

%

 

 

1,176

 

 

6.2

%

Total operating expenses

 

284,169

 

89.1

%

 

 

238,201

 

92.4

%

 

 

45,968

 

 

19.3

%

Operating income

$

34,893

 

10.9

%

 

$

19,495

 

7.6

%

 

$

15,398

 

 

79.0

%
     

 

 

(1)

 Network revenue is comprised of all revenue, including linehaul, pickup and/or delivery, and fuel surcharge revenue, excluding accessorial and Truckload revenue.

 

Three Months Ended

 

 

 

June 30,

 

 

 

2026

 

2025

 

% Change

Business days

 

64

 

 

64

 

—

%

 

 

 

 

 

 

Tonnage (1)

 

 

 

 

 

Total pounds

 

665,073

 

 

623,394

 

6.7

%

Pounds per day

 

10,392

 

 

9,741

 

6.7

%

 

 

 

 

 

 

Shipments (1)

 

 

 

 

 

Total shipments

 

749

 

 

739

 

1.4

%

Shipments per day

 

11.7

 

 

11.5

 

1.7

%

 

 

 

 

 

 

Weight per shipment

 

888

 

 

843

 

5.3

%

 

 

 

 

 

 

Revenue per hundredweight (2)

$

33.98

 

$

31.09

 

9.3

%

Revenue per hundredweight, ex fuel (2)

$

24.26

 

$

24.82

 

(2.3

)%

 

 

 

 

 

 

Revenue per shipment (2)

$

301.75

 

$

261.82

 

15.3

%

Revenue per shipment, ex fuel (2)

$

215.41

 

$

209.24

 

2.9

%

 

      

 
(1)

Excludes accessorial and Truckload products.
(2)

Includes intercompany revenue between the Network and Truckload revenue streams.

Omni Logistics Segment Information

(unaudited and in thousands)
 

 

Three Months Ended June 30,

 

 

 

 

 

2026

 

% of Revenue

 

2025

 

% of Revenue

 

$ Change

 

% Change

Operating revenues:

 

 

 

 

 

 

 

 

 

 

 

Ground

$

132,854

 

 

39.2

%

 

$

155,430

 

47.3

%

 

$

(22,576

)

 

(14.5

)%

Contract Logistics

 

112,332

 

 

33.2

%

 

 

97,469

 

29.7

%

 

 

14,863

 

 

15.2

%

Air and Ocean

 

93,361

 

 

27.6

%

 

 

75,417

 

23.0

%

 

 

17,944

 

 

23.8

%

Total operating revenues

 

338,547

 

 

100.0

%

 

 

328,316

 

100.0

%

 

 

10,231

 

 

3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

190,166

 

 

56.2

%

 

 

185,040

 

56.4

%

 

 

5,126

 

 

2.8

%

Salaries, wages and employee benefits

 

62,226

 

 

18.4

%

 

 

61,584

 

18.8

%

 

 

642

 

 

1.0

%

Operating leases

 

27,466

 

 

8.1

%

 

 

25,686

 

7.8

%

 

 

1,780

 

 

6.9

%

Depreciation and amortization

 

23,878

 

 

7.1

%

 

 

22,419

 

6.8

%

 

 

1,459

 

 

6.5

%

Insurance and claims

 

276

 

 

0.1

%

 

 

1,248

 

0.4

%

 

 

(972

)

 

(77.9

)%

Fuel expense

 

457

 

 

0.1

%

 

 

888

 

0.3

%

 

 

(431

)

 

(48.5

)%

Other operating expenses

 

20,082

 

 

5.9

%

 

 

24,265

 

7.4

%

 

 

(4,183

)

 

(17.2

)%

Impairment of goodwill

 

244,006

 

 

72.1

%

 

 

—

 

—

%

 

 

244,006

 

 

nm

Total operating expenses

 

568,557

 

 

167.9

%

 

 

321,130

 

97.8

%

 

 

247,427

 

 

77.0

%

Operating (loss) income

$

(230,010

)

 

(67.9

)%

 

$

7,186

 

2.2

%

 

$

(237,196

)

 

nm

nm = not meaningful

Intermodal Segment Information

(unaudited and in thousands)
 

 

Three Months Ended June 30,

 

 

 

 

 

2026

 

% of Revenue

 

2025

 

% of Revenue

 

$ Change

 

% Change

Operating revenues

$

59,724

 

100.0

%

 

$

59,146

 

100.0

%

 

$

578

 

 

1.0

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Purchased transportation

 

22,087

 

37.0

%

 

 

20,049

 

33.9

%

 

 

2,038

 

 

10.2

%

Salaries, wages and employee benefits

 

13,783

 

23.1

%

 

 

15,385

 

26.0

%

 

 

(1,602

)

 

(10.4

)%

Operating leases

 

6,100

 

10.2

%

 

 

5,336

 

9.0

%

 

 

764

 

 

14.3

%

Depreciation and amortization

 

3,882

 

6.5

%

 

 

4,502

 

7.6

%

 

 

(620

)

 

(13.8

)%

Insurance and claims

 

1,799

 

3.0

%

 

 

3,147

 

5.3

%

 

 

(1,348

)

 

(42.8

)%

Fuel expense

 

2,541

 

4.3

%

 

 

1,857

 

3.1

%

 

 

684

 

 

36.8

%

Other operating expenses

 

3,431

 

5.7

%

 

 

4,455

 

7.6

%

 

 

(1,024

)

 

(23.0

)%

Total operating expenses

 

53,623

 

89.8

%

 

 

54,731

 

92.5

%

 

 

(1,108

)

 

(2.0

)%

Operating income

$

6,101

 

10.2

%

 

$

4,415

 

7.5

%

 

$

1,686

 

 

38.2

%

 

Three Months Ended

 

 

 

June 30,

 

 

 

2026

 

2025

 

% Change

Drayage shipments

 

61,909

 

 

62,313

 

(0.6

)%

Drayage revenue per shipment

$

942

 

$

862

 

9.3

%
 

Forward Air Corporation

Condensed Consolidated Balance Sheets

(unaudited and in thousands)
 

 

June 30, 2026

 

December 31, 2025

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

139,448

 

 

$

105,996

 

Accounts receivable, net

 

369,469

 

 

 

343,559

 

Other receivables

 

6,104

 

 

 

6,147

 

Prepaid expenses

 

26,465

 

 

 

28,045

 

Other current assets

 

41,630

 

 

 

37,254

 

Total current assets

 

583,116

 

 

 

521,001

 

Property and equipment, net

 

274,670

 

 

 

297,882

 

Operating lease right-of-use assets

 

361,426

 

 

 

412,535

 

Goodwill

 

278,706

 

 

 

522,712

 

Other intangible assets, net

 

860,915

 

 

 

906,791

 

Other long-term assets

 

52,012

 

 

 

58,023

 

Total assets

$

2,410,845

 

 

$

2,718,944

 

LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

118,651

 

 

$

121,752

 

Accrued expenses

 

118,551

 

 

 

114,422

 

Other current liabilities

 

81,911

 

 

 

69,130

 

Current portion of finance lease obligations

 

14,961

 

 

 

15,995

 

Current portion of operating lease liabilities

 

107,497

 

 

 

107,026

 

Total current liabilities

 

441,571

 

 

 

428,325

 

Long-term debt

 

1,693,340

 

 

 

1,687,248

 

Liabilities under Tax Receivable Agreement

 

26,794

 

 

 

11,548

 

Finance lease obligations, less current portion

 

16,804

 

 

 

22,387

 

Operating lease liabilities, less current portion

 

277,379

 

 

 

327,011

 

Deferred income taxes

 

24,358

 

 

 

27,221

 

Other long-term liabilities

 

53,265

 

 

 

53,540

 

Total liabilities

 

2,533,511

 

 

 

2,557,280

 

Shareholders’ (deficit) equity:

 

 

 

Preferred stock

 

—

 

 

 

—

 

Common stock

 

337

 

 

 

313

 

Additional paid-in capital

 

575,818

 

 

 

559,551

 

Accumulated deficit

 

(690,324

)

 

 

(447,100

)

Accumulated other comprehensive income

 

(1,261

)

 

 

580

 

Total Forward Air shareholders’ (deficit) equity

 

(115,430

)

 

 

113,344

 

Noncontrolling interest

 

(7,236

)

 

 

48,320

 

Total shareholders’ (deficit) equity

 

(122,666

)

 

 

161,664

 

Total liabilities and shareholders’ (deficit) equity

$

2,410,845

 

 

$

2,718,944

 
 

Forward Air Corporation

Condensed Consolidated Statements of Cash Flows

(unaudited and in thousands)
 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2026

 

2025

 

2026

 

2025

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net loss

$

(245,931

)

 

$

(20,364

)

 

$

(286,129

)

 

$

(81,555

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

38,262

 

 

 

36,806

 

 

 

76,783

 

 

 

74,166

 

Impairment of goodwill

 

244,006

 

 

 

—

 

 

 

244,006

 

 

 

—

 

Share-based compensation expense

 

491

 

 

 

4,711

 

 

 

4,032

 

 

 

7,669

 

Change in Tax Receivable Agreement liability

 

(1,219

)

 

 

6,864

 

 

 

15,488

 

 

 

6,864

 

Deferred income tax benefit

 

(604

)

 

 

(1,933

)

 

 

(2,774

)

 

 

(4,725

)

Non-cash interest expense

 

3,654

 

 

 

3,473

 

 

 

7,227

 

 

 

6,846

 

Gain on sale of business

 

(3,649

)

 

 

—

 

 

 

(3,649

)

 

 

—

 

Other

 

1,774

 

 

 

1,326

 

 

 

4,191

 

 

 

2,399

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(46,494

)

 

 

4,200

 

 

 

(36,020

)

 

 

(16,945

)

Other receivables

 

(2,551

)

 

 

743

 

 

 

(499

)

 

 

309

 

Other current and noncurrent assets

 

4,029

 

 

 

8,952

 

 

 

932

 

 

 

9,719

 

Accounts payable, accrued expenses and other current liabilities

 

3,349

 

 

 

(57,995

)

 

 

17,267

 

 

 

9,651

 

Net cash (used in) provided by operating activities

 

(4,883

)

 

 

(13,217

)

 

 

40,855

 

 

 

14,398

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Proceeds from sale of property and equipment

 

1,125

 

 

 

804

 

 

 

2,553

 

 

 

1,495

 

Purchases of property and equipment

 

(3,213

)

 

 

(4,744

)

 

 

(10,159

)

 

 

(16,650

)

Proceeds from sale of business, net

 

8,739

 

 

 

—

 

 

 

8,739

 

 

 

—

 

Other

 

—

 

 

 

55

 

 

 

—

 

 

 

31

 

Net cash provided by (used in) investing activities

 

6,651

 

 

 

(3,885

)

 

 

1,133

 

 

 

(15,124

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Repayments of finance lease obligations

 

(4,149

)

 

 

(4,945

)

 

 

(8,374

)

 

 

(9,376

)

Proceeds from borrowings under credit facility

 

—

 

 

 

60,000

 

 

 

—

 

 

 

85,000

 

Repayments of borrowings under credit facility

 

—

 

 

 

(60,000

)

 

 

—

 

 

 

(85,000

)

Proceeds from common stock issued under employee stock purchase plan

 

734

 

 

 

434

 

 

 

734

 

 

 

434

 

Payment of minimum tax withholdings on share-based awards and other

 

(120

)

 

 

(107

)

 

 

(805

)

 

 

(1,001

)

Net cash used in financing activities

 

(3,535

)

 

 

(4,618

)

 

 

(8,445

)

 

 

(9,943

)

Effect of exchange rate changes on cash

 

193

 

 

 

353

 

 

 

(91

)

 

 

710

 

NET CHANGE IN CASH, CASH EQUIVALENTS, RESTRICTED CASH AND RESTRICTED CASH EQUIVALENTS

 

(1,574

)

 

 

(21,367

)

 

 

33,452

 

 

 

(9,959

)

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period

 

141,022

 

 

 

116,674

 

 

 

105,996

 

 

 

105,266

 

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period

$

139,448

 

 

$

95,307

 

 

$

139,448

 

 

$

95,307

 
 

Forward Air Corporation Reconciliation of Non-GAAP Financial Measures

In this press release, the Company includes financial measures that are derived on the basis of methodologies other than in accordance with United States generally accepted accounting principles (“GAAP”). The Company believes that meaningful analysis of its financial performance requires an understanding of the factors underlying that performance, including an understanding of items that are non-operational. Management uses these non-GAAP financial measures in making financial, operating, compensation and planning decisions as well as evaluating the Company’s performance.

For the three and six months ended June 30, 2026 and 2025, this press release contains the following non-GAAP financial measures: earnings before interest, taxes, depreciation and amortization for each segment (“Reported EBITDA”), Consolidated EBITDA, Adjusted Operating Income and free cash flow.

All non-GAAP financial measures are presented on a continuing operations basis.

The Company believes that Reported EBITDA improves comparability from period to period by removing the impact of its capital structure (interest and financing expenses), asset base (depreciation and amortization) and tax impacts. The Company believes that free cash flow is an important measure of its ability to repay maturing debt or fund other uses of capital that it believes will enhance shareholder value.

The Company is also providing Consolidated EBITDA calculated in accordance with our credit agreement as we believe it provides investors with important information regarding our financial condition and compliance with our obligations under our credit agreement.

Non-GAAP financial measures should be viewed in addition to, and not as an alternative to or substitute for, the Company’s financial results prepared in accordance with GAAP. The Company has included, for the periods indicated, a reconciliation of the non-GAAP financial measure to the most directly comparable GAAP financial measure. Investors and other readers are encouraged to review the related GAAP financial measures and the reconciliations of the non-GAAP measures to their most directly comparable GAAP measures set forth below.

The following is a reconciliation of net loss to Consolidated EBITDA:

 

Three Months Ended

 

Six Months Ended

 

Last Twelve Months

 

June 30,

 

June 30,

 

(in thousands)

2026

 

2025

 

2026

 

2025

 

June 30, 2026

Net loss

$

(245,931

)

 

$

(20,364

)

 

$

(286,129

)

 

$

(81,555

)

 

$

(346,299

)

Interest expense, net

 

43,721

 

 

 

45,326

 

 

 

87,308

 

 

 

90,873

 

 

 

177,182

 

Income tax (benefit) expense

 

(174

)

 

 

(16,749

)

 

 

1,619

 

 

 

2,840

 

 

 

(6,693

)

Depreciation and amortization

 

38,262

 

 

 

36,806

 

 

 

76,783

 

 

 

74,166

 

 

 

155,255

 

Reported EBITDA

 

(164,122

)

 

 

45,019

 

 

 

(120,419

)

 

 

86,324

 

 

 

(20,555

)

Impairment of goodwill

 

244,006

 

 

 

—

 

 

 

244,006

 

 

 

—

 

 

 

244,006

 

Loss from discontinued operations, net of tax

 

2,075

 

 

 

—

 

 

 

2,075

 

 

 

—

 

 

 

2,075

 

Transaction and integration costs

 

4,709

 

 

 

5,949

 

 

 

7,523

 

 

 

19,875

 

 

 

19,097

 

Severance costs

 

1,114

 

 

 

830

 

 

 

1,654

 

 

 

2,404

 

 

 

4,993

 

Change in Tax Receivable Agreement liability

 

(1,219

)

 

 

6,864

 

 

 

15,488

 

 

 

6,864

 

 

 

6,878

 

Optimization project costs

 

152

 

 

 

691

 

 

 

152

 

 

 

1,722

 

 

 

20,840

 

Gain on disposition of business, net

 

(2,874

)

 

 

—

 

 

 

(2,874

)

 

 

—

 

 

 

(2,874

)

Proforma savings

 

—

 

 

 

4,352

 

 

 

—

 

 

 

8,704

 

 

 

5,413

 

Proforma dispositions

 

1,078

 

 

 

953

 

 

 

1,498

 

 

 

864

 

 

 

612

 

Other

 

8,066

 

 

 

14,423

 

 

 

14,680

 

 

 

25,546

 

 

 

38,079

 

Consolidated EBITDA

$

92,985

 

 

$

79,081

 

 

$

163,783

 

 

$

152,303

 

 

$

318,564

 

The following is a reconciliation of operating (loss) income to operating income, excluding the goodwill impairment charge, or adjusted operating income:

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

(in thousands)

2026

 

2025

 

2026

 

2025

Operating (loss) income

$

(201,312

)

 

$

19,522

 

$

(180,871

)

 

$

24,285

Impairment of goodwill

 

244,006

 

 

 

—

 

 

244,006

 

 

 

—

Adjusted operating income

$

42,694

 

 

$

19,522

 

$

63,135

 

 

$

24,285

The following is a reconciliation of net cash (used in) provided by operating activities to free cash flow:

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

(in thousands)

2026

 

2025

 

2026

 

2025

Net cash (used in) provided by operating activities

$

(4,883

)

 

$

(13,217

)

 

$

40,855

 

 

$

14,398

 

Proceeds from sale of property and equipment

 

1,125

 

 

 

804

 

 

 

2,553

 

 

 

1,495

 

Purchases of property and equipment

 

(3,213

)

 

 

(4,744

)

 

 

(10,159

)

 

 

(16,650

)

Free cash flow

$

(6,971

)

 

$

(17,157

)

 

$

33,249

 

 

$

(757

)

Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements included in this press release relate to management’s expectations regarding: the Company’s beliefs regarding the Intermodal segment and changing market conditions.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. The following is a list of factors, among others, that could cause actual results to differ materially from those contemplated by the forward-looking statements: economic factors such as tariffs, recessions, inflation, higher interest rates and downturns in customer business cycles, the risk of customer loss, the risk of management and employee loss, the creditworthiness of our customers and their ability to pay for services rendered, our inability to maintain our historical growth rate because of a decreased volume of freight or decreased average revenue per pound of freight moving through our network, market acceptance of our service offerings, increasing competition and pricing pressure, our dependence on our senior management team and the potential effects of changes in employee status, seasonal trends, the occurrence of certain weather events, restrictions in our charter and bylaws, and the risks described in our Annual Report on Form 10-K for the year ended December 31, 2025, and as may be identified in our subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

We caution readers that any forward-looking statement made by us in this press release is based only on information currently available to us and they should not place undue reliance on any forward-looking statement, which reflect management’s opinion as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise unless required by law.

Investors:

Tony Carreño

[email protected]

Media:

Hannah Weeg

[email protected]

KEYWORDS: Texas United States North America

INDUSTRY KEYWORDS: Other Transport Trucking Rail Maritime Air Transport Logistics/Supply Chain Management Retail Supply Chain Management

MEDIA:

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Posted on

MercadoLibre, Inc. Reports Second Quarter 2026 Financial Results

MercadoLibre, Inc. Reports Second Quarter 2026 Financial Results

MONTEVIDEO, Uruguay–(BUSINESS WIRE)–
MercadoLibre, Inc. (NASDAQ: MELI) (http://www.mercadolibre.com) today reported financial results for its second fiscal quarter ending June 30, 2026, in a Letter to Shareholders, which is now posted to the company’s Investor Relations website at https://investor.mercadolibre.com.

The Company will host its earnings video conference, as well as a conference call and audio webcast for any questions that investors may have, on August 5, 2026 at 5:00 p.m. Eastern Time.

In order to access our video webcast and the live audio, investors, analysts and the market in general may access the following link at https://event.choruscall.com/mediaframe/webcast.html?webcastid=xr1sGkCu to attend the live event.

To participate in our conference call Q&A, investors, analysts and the market in general may access the following link https://hdr.choruscall.com/?$Y2FsbHR5cGU9MiZyPXRydWUmaW5mbz1jb21wYW55LXBob25l or dial in through the following numbers: TOLL FREE 1-833-821-3654 | INTERNATIONAL 1-412-652-1249 and ask to join MercadoLibre’s conference call to be able to pose questions.

Access to our video webcast and the live audio will be available in the investor relations section of the Company’s Investor Relations website, at http://investor.mercadolibre.com. An archive of the webcast will be available for one week following the conclusion of the conference call.

About Mercado Libre

Founded in 1999, MercadoLibre, Inc. (NASDAQ: MELI) is the leading company in e-commerce and financial technology in Latin America, with operations in 18 countries. It offers a complete ecosystem of solutions for individuals and businesses to buy, sell, advertise, obtain credit and insurance, collect, send money, save, and pay for goods and services both online and offline. Mercado Libre looks to facilitate access to commerce and financial services in Latin America, a market that offers great opportunities and high growth potential. It uses world-class technology to create intuitive solutions tailored to the local culture to transform the lives of millions of people in the region. More information at http://investor.mercadolibre.com or contact our IR team at [email protected].

Investor Relations Contact:

[email protected]

http://investor.mercadolibre.com

Media Relations Contact:

[email protected]

KEYWORDS: Latin America Uruguay South America

INDUSTRY KEYWORDS: Professional Services Online Retail Retail Insurance Fintech Personal Finance

MEDIA:

Posted on

TTM Technologies, Inc. Reports Second Quarter 2026 Results

SANTA ANA, Calif., Aug. 05, 2026 (GLOBE NEWSWIRE) — TTM Technologies, Inc. (NASDAQ: TTMI) (“TTM”), a leading global manufacturer of technology products, including mission systems, radio frequency (“RF”) components, RF microwave/microelectronic assemblies, and technologically advanced interconnect products, including printed circuit boards (“PCB”s) and substrates, today reported results for the second quarter of 2026, which ended on June 29, 2026.  

Second Quarter 2026 Highlights

  • Net sales were $1.0 billion, up 37% year on year, and an all-time quarterly record
  • GAAP net income of $83.0 million, or $0.77 per diluted share
  • Adjusted EBITDA of $166.8 million, or 16.6% of net sales
  • Non-GAAP net income of $106.9 million, or $0.99 per diluted share, an all-time quarterly record
  • Cash flow from operations of $96.4 million, or 9.6% of net sales
  • Total book to bill of 1.49
  • A&D end market was 37% of total net sales; and total program backlog was over $1.7 billion
  • Data Center and Networking end market was 40% of total net sales driven by continued AI demand

Second Quarter 2026 GAAP Financial Results

Net sales in the second quarter of 2026 were $1.0 billion, compared to $730.6 million in the second quarter of 2025.

GAAP operating income in the second quarter of 2026 was $109.1 million. This compared to GAAP operating income in the second quarter of 2025 of $61.8 million.

GAAP net income in the second quarter of 2026 was $83.0 million, or $0.77 per diluted share. This compared to GAAP net income in the second quarter of 2025 of $41.5 million, or $0.40 per diluted share.  

Second Quarter 2026 Non-GAAP Financial Results

Adjusted EBITDA in the second quarter of 2026 was $166.8 million, or 16.6% of net sales, compared to adjusted EBITDA of $109.7 million, or 15.0% of net sales, in the second quarter of 2025.

Non-GAAP net income in the second quarter of 2026 was $106.9 million, or $0.99 per diluted share, compared to non-GAAP net income of $60.8 million, or $0.58 per diluted share, in the second quarter of 2025.

“We delivered another record high quarterly net sales and non-GAAP EPS, reflecting the strength of our strategic business model, positive market demand trends across end markets, and operational excellence from our employees. Revenues grew 37% year on year, powered largely by ongoing robust demand in the Data Center and Networking end market, which increased 91% year on year. Our Medical, Industrial and Instrumentation end market experienced 33% year on year revenue growth, and our Aerospace and Defense end market delivered 14% year on year revenue growth and a healthy improvement in backlog, reflecting our positive alignment with projected priority defense programs,” said Edwin Roks, President & CEO of TTM Technologies, Inc. “Adjusted EBITDA margin was a healthy 16.6%, providing evidence that our margin expansion efforts are currently working. Cash from operations was $96.4 million and our net leverage ratio is 0.9x.” concluded Dr. Roks.

Dr. Roks added, “Looking forward, we are excited about TTM’s strategic position given our strong existing customer momentum in addition to our announced agreements to acquire Swiss Technology Group AG and ILFA GmbH, as part of our entry into Europe, which we expect to close in the third quarter of 2026. During the quarter, we also took steps through the recently announced $1.0 billion revolver and upsized Term Loan B to increase balance sheet flexibility and provide additional capacity for organic and inorganic investments that align with our strategy.”

Business Outlook

For the third quarter of 2026, TTM estimates that net sales will be in the range of $1.10 billion to $1.14 billion, and non-GAAP net income will be in the range of $1.21 to $1.27 per diluted share. For full year 2026, TTM now expects net sales of approximately $4.4 billion and non-GAAP net income per share to approach $5.00. Our third quarter estimate and full year outlook do not include any contribution or impact from pending acquisitions.

With respect to TTM’s outlook for non-GAAP net income per diluted share, we are unable to predict with reasonable certainty or without unreasonable effort certain items that may affect a comparable measure calculated and presented in accordance with GAAP. Our expected non-GAAP net income per diluted share exclude the future impact of restructuring actions, impairment charges, unusual gains and losses including but not limited to unrealized foreign exchange translation, and tax adjustments. These reconciling items are highly variable and difficult to predict due to various factors outside of management’s control and could have a material impact on our future period net income per diluted share calculated and presented in accordance with GAAP. Accordingly, reconciliations of non-GAAP net income per diluted share to a comparable measure calculated and presented in accordance with GAAP have not been provided because TTM is unable to provide such reconciliation without unreasonable effort. For the same reasons, TTM is unable to address the probable significance of the information.

Live Webcast/Conference Call

TTM will host a conference call and webcast to discuss second quarter 2026 results and the third quarter 2026 outlook on Wednesday, August 5, 2026, at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The conference call will include forward-looking statements.

Access to the conference call will be made available by dialing +1 (800) 715-9871 in the USA & Canada or +1 (646) 307-1963 with Passcode: 8905104. The conference call will also be simulcast on the company’s website for those who would like to view the live webcast, and this can be accessed by clicking on the link TTM Technologies Second Quarter 2026 Webcast. The webcast will remain accessible for one week following the live event.

About TTM

TTM Technologies, Inc. is a leading global manufacturer of technology products, including mission systems, radio frequency (“RF”) components, RF microwave/microelectronic assemblies, and technologically advanced interconnect products, including PCBs and substrates. TTM stands for time-to-market, representing how TTM’s time-critical, one-stop design, engineering and manufacturing services enable customers to reduce the time required to develop new products and bring them to market. Additional information can be found at www.ttm.com.

Forward-Looking Statements

The preliminary financial results included in this press release represent the most current information available to management. This release contains forward-looking statements that relate to future events or performance. TTM cautions you that such statements are simply predictions and actual events or results may differ materially. These statements reflect TTM’s current expectations, and TTM does not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other TTM statements will not be realized. Further, these statements involve risks and uncertainties, many of which are beyond TTM’s control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, but are not limited to, general market and economic conditions, including interest rates, currency exchange rates, and consumer spending, demand for TTM’s products, market pressures on prices of TTM’s products, warranty claims, changes in product mix, contemplated significant capital expenditures and related financing requirements, TTM’s dependence upon a small number of customers, and other factors set forth in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of TTM’s public reports filed with the SEC.

About Our Non-GAAP Financial Measures

To supplement our consolidated condensed financial statements presented on a GAAP basis, this release includes information about TTM’s adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP earnings per diluted share (“EPS”), all of which are non-GAAP financial measures. TTM presents non-GAAP financial information to enable investors to see TTM through the eyes of management and to provide better insight into TTM’s ongoing financial performance.

A material limitation associated with the use of the above non-GAAP financial measures is that they have no standardized measurement prescribed by GAAP and may not be comparable to similar non-GAAP financial measures used by other companies. TTM compensates for these limitations by providing full disclosure of each non-GAAP financial measure and reconciliations below to the most directly comparable GAAP financial measure. However, the non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Contact:
Sean K.F. Hannan,
Vice President, Investor Relations
[email protected]
+1 339 466 7737

– Tables Follow –

 
TTM TECHNOLOGIES, INC.
Selected Unaudited Financial Information

(In thousands, except per share data)

 
    Second Quarter       First Two Quarters  
    2026
       2025       2026       2025  
 
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                       
Net sales $               1,004,054     $                  730,621     $               1,850,030     $               1,379,289  
Cost of goods sold 792,196     582,512     1,456,991     1,100,208  
                       
Gross profit 211,858     148,109     393,039     279,081  
                       
Operating expenses:                      
Selling and marketing 25,490     21,316     50,484     42,587  
General and administrative 62,107     49,719     130,852     93,493  
Research and development 7,978     7,009     15,786     15,073  
Amortization of definite-lived intangibles 6,888     6,888     13,777     13,777  
Restructuring charges 340     1,408     636     2,122  
Total operating expenses 102,803     86,340     211,535     167,052  
                       
Operating income 109,055     61,769     181,504     112,029  
                       
Interest expense (10,496 )   (11,095 )   (21,096 )   (22,559 )
Loss on extinguishment of debt (747 )   –     (747 )   –  
Unrealized loss on derivative instruments (13,994 )   –     (13,994 )   –  
Other, net (2,571 )   (5,149 )   (5,895 )   (2,954 )
                       
Income before income taxes 81,247     45,525     139,772     86,516  
Income tax benefit (provision) 1,800     (3,995 )   (6,737 )   (12,808 )
                       
Net income $                   83,047     $                   41,530     $                  133,035     $                   73,708  
                       
Earnings per share:                      
Basic $                       0.80     $                       0.41     $                       1.28     $                       0.72  
Diluted 0.77     0.40     1.24     0.70  
                       
Weighted-average shares used in computing per share amounts:                      
Basic 104,291     101,857     104,061     101,861  
Diluted 107,583     104,873     107,334     104,701  
                       
Reconciliation of the denominator used to calculate basic earnings per share and diluted earnings per share:                        
Weighted-average shares outstanding 104,291     101,857     104,061     101,861  
Dilutive effect of performance-based stock units, restricted stock units and stock options 3,292     3,016     3,273     2,840  
Diluted shares 107,583     104,873     107,334     104,701  

SELECTED BALANCE SHEET DATA
  June 29, 2026   December 29, 2025
Cash and cash equivalents $ 507,905     $ 501,234  
Accounts receivable, net 720,143     563,741  
Contract assets 596,036     468,006  
Inventories 307,972     250,057  
Total current assets 2,249,899     1,855,406  
Property, plant and equipment, net 1,187,809     1,010,710  
Total assets 4,415,709     3,840,331  
           
Short-term debt, including current portion of long-term debt $ 4,000     $ 3,815  
Accounts payable 812,987     543,538  
Contract liabilities 186,770     175,627  
Total current liabilities 1,263,967     962,197  
Long-term debt, net of discount and issuance costs 969,456     912,336  
Total long-term liabilities 1,217,314     1,115,881  
Total stockholders’ equity 1,934,428     1,762,253  
Total liabilities and stockholders’ equity 4,415,709     3,840,331  

SUPPLEMENTAL DATA
  Second Quarter   First Two Quarters
  2026   2025   2026   2025
Gross margin 21.1 %   20.3 %   21.2 %   20.2 %
Operating margin 10.9 %   8.5 %   9.8 %   8.1 %
                       
  Second Quarter   First Two Quarters
  2026   2025   2026   2025
End market breakdown1:                      
Aerospace and Defense 37 %   45 %   39 %   47 %
Automotive 8 %   11 %   8 %   11 %
Data Center and Networking 40 %   29 %   38 %   28 %
Medical, Industrial, and Instrumentation 15 %   15 %   15 %   14 %
                       
  Second Quarter   First Two Quarters
  2026   2025   2026   2025
Operating segment data1:                      
Net sales:                      
Aerospace & Defense $ 382,750     $ 335,183     $ 734,414     $ 651,433  
Commercial 621,605     395,624     1,116,648     728,329  
Intersegment eliminations (301 )   (186 )   (1,032 )   (473 )
Total net sales $ 1,004,054     $ 730,621     $ 1,850,030     $ 1,379,289  
                       
Segment operating income:                      
Aerospace & Defense 63,861     48,145     118,640     90,514  
Commercial 112,676     60,069     194,244     103,718  
Total segment operating income $ 176,537     $ 108,214     $ 312,884     $ 194,232  
                       
Unallocated amounts:                      
Restructuring (340 )   (1,408 )   (636 )   (2,122 )
Acquisition-related and other charges (4,749 )   –     (4,946 )   –  
Stock-based compensation (13,292 )   (9,188 )   (37,648 )   (17,975 )
Other corporate expenses (39,877 )   (26,625 )   (69,702 )   (43,658 )
Amortization of definite-lived intangibles (9,224 )   (9,224 )   (18,448 )   (18,448 )
Total operating income $ 109,055     $ 61,769     $ 181,504     $ 112,029  

RECONCILIATIONS

2
  Second Quarter   First Two Quarters
  2026   2025   2026   2025
                       
Non-GAAP gross profit reconciliation3:                      
GAAP gross profit $ 211,858     $ 148,109     $ 393,039     $ 279,081  
Add back item:                      
Amortization of definite-lived intangibles 2,336     2,336     4,671     4,671  
Stock-based compensation 3,771     2,827     7,438     5,500  
Unrealized (gain) loss on commodity hedge 1,785     (283 )   3,279     (1,059 )
Non-GAAP gross profit $ 219,750     $ 152,989     $ 408,427     $ 288,193  
Non-GAAP gross margin 21.9 %   20.9 %   22.1 %   20.9 %
                       
Non-GAAP operating income reconciliation4:                      
GAAP operating income $ 109,055     $ 61,769     $ 181,504     $ 112,029  
Add back items:                      
Amortization of definite-lived intangibles 9,224     9,224     18,448     18,448  
Stock-based compensation 13,292     9,188     37,648     17,975  
Unrealized (gain) loss on commodity hedge 1,785     (283 )   3,279     (1,059 )
Restructuring, acquisition-related and other charges 5,089     1,523     5,582     2,237  
Non-GAAP operating income $ 138,445     $ 81,421     $ 246,461     $ 149,630  
Non-GAAP operating margin 13.8 %   11.1 %   13.3 %   10.8 %
                       
Non-GAAP net income and EPS reconciliation5:                      
GAAP net income $ 83,047     $ 41,530     $ 133,035     $ 73,708  
Add back items:                      
Amortization of definite-lived intangibles 9,224     9,224     18,448     18,448  
Stock-based compensation 13,292     9,188     37,648     17,975  
Non-cash interest expense 588     536     1,142     1,067  
Loss on extinguishment of debt 747     –     747     –  
Unrealized (gain) loss on commodity hedge 1,785     (283 )   3,279     (1,059 )
Unrealized (gain) loss on foreign exchange (226 )   5,750     (1,209 )   7,964  
Unrealized loss on derivative instruments 13,994     –     13,994     –  
Restructuring, acquisition-related and other charges 5,089     1,543     5,582     2,257  
Income taxes6 (20,661 )   (6,727 )   (25,705 )   (7,167 )
Non-GAAP net income $ 106,879     $ 60,761     $ 186,961     $ 113,193  
Non-GAAP earnings per diluted share $ 0.99     $ 0.58     $ 1.74     $ 1.08  
                       
  Second Quarter   First Two Quarters
  2026   2025   2026   2025
Adjusted EBITDA reconciliation7:                      
GAAP net income $ 83,047     $ 41,530     $ 133,035     $ 73,708  
Add back items:                      
Income tax (benefit) provision (1,800 )   3,995     6,737     12,808  
Interest expense 10,496     11,095     21,096     22,559  
Amortization of definite-lived intangibles 9,224     9,224     18,448     18,448  
Depreciation expense 31,122     27,692     60,414     54,555  
Stock-based compensation 13,292     9,188     37,648     17,975  
Loss on extinguishment of debt 747     –     747     –  
Unrealized (gain) loss on commodity hedge 1,785     (283 )   3,279     (1,059 )
Unrealized (gain) loss on foreign exchange (226 )   5,750     (1,209 )   7,964  
Unrealized loss on derivative instruments 13,994     –     13,994     –  
Restructuring, acquisition-related and other charges 5,089     1,543     5,463     2,257  
Adjusted EBITDA $ 166,770     $ 109,734     $ 299,652     $ 209,215  
Adjusted EBITDA margin 16.6 %   15.0 %   16.2 %   15.2 %
                       
Free cash flow reconciliation:                      
Operating cash flow $ 96,429     $ 97,804     $ 118,172     $ 87,149  
Capital expenditures, net (50,416 )   (60,234 )   (157,217 )   (123,454 )
Free cash flow $ 46,013     $ 37,570     $ (39,045 )   $ (36,305 )

1 Prior year end market revenue has been recasted due to merged Data Center Computing and Networking end markets. The operating segment data has been recasted also due to strategically realigning the RF and Specialty Components (RF&S Components) segment within the A&D segment during the quarter ended March 30, 2026.
 
2 This information provides a reconciliation of non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP EPS, and adjusted EBITDA to the most comparable GAAP metric in our consolidated condensed statements of operations.
 
3 Non-GAAP gross profit and gross margin measures exclude amortization of definite-lived intangibles, stock-based compensation, and unrealized (gain) loss on commodity hedge.
 
4 Non-GAAP operating income and operating margin measures exclude amortization of definite-lived intangibles, stock-based compensation, unrealized (gain) loss on commodity hedge, restructuring, acquisition-related, and other charges.
 
5 This information provides non-GAAP net income and non-GAAP EPS, which are non-GAAP financial measures. Management believes that both measures — which add back amortization of definite-lived intangibles, stock-based compensation, non-cash interest expense, loss on extinguishment of debt, unrealized (gain) loss on commodity hedge, unrealized (gain) loss on foreign exchange, unrealized loss on derivative instruments, restructuring, acquisition-related, and other charges as well as the associated tax impact of these charges and discrete tax items — provide additional useful information to investors regarding the Company’s ongoing financial condition and results of operations.
 
6 Income tax adjustments reflect the difference between income taxes based on a non-GAAP tax rate and a forecasted annual GAAP tax rate.
 
7 Adjusted EBITDA is defined as earnings before income tax (benefit) provision, interest expense, amortization of definite-lived intangibles, depreciation expense, stock-based compensation, loss on extinguishment of debt, unrealized (gain) loss on commodity hedge, unrealized (gain) loss on foreign exchange, unrealized loss on derivative instruments, restructuring, acquisition-related, and other charges. We present adjusted EBITDA to enhance the understanding of our operating results, and it is a key measure we use to evaluate our operations. In addition, we provide our adjusted EBITDA because we believe that investors and securities analysts will find adjusted EBITDA to be a useful measure for evaluating our operating performance and comparing our operating performance with that of similar companies that have different capital structures and for evaluating our ability to meet our future debt service, capital expenditures, and working capital requirements. However, adjusted EBITDA should not be considered as an alternative to cash flows from operating activities as a measure of liquidity or as an alternative to net income as a measure of operating results in accordance with accounting principles generally accepted in the United States of America.



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Power Integrations Reports Second-Quarter Financial Results

Power Integrations Reports Second-Quarter Financial Results

Revenue increased ten percent sequentially to $118.9 million; GAAP earnings were $0.17 per diluted share; non-GAAP earnings were $0.37 per diluted share

Cash flow from operations was $22.0 million

SAN JOSE, Calif.–(BUSINESS WIRE)–
Power Integrations (NASDAQ: POWI) today announced financial results for the quarter ended June 30, 2026. Revenue for the second quarter was $118.9 million, up ten percent from the prior quarter and up three percent from the second quarter of 2025. GAAP net income for the second quarter was $9.8 million or $0.17 per diluted share compared to $0.06 per diluted share in the prior quarter and $0.02 per diluted share in the second quarter of 2025. Cash flow from operations for the second quarter was $22.0 million.

In addition to its GAAP results, the company provided certain measures not calculated according to GAAP. Non-GAAP results exclude stock-based compensation, amortization of acquisition-related intangible assets, accrual for a judgment in a legal matter, a restructuring charge recognized in the first quarter of 2026 and the tax effects of these items. Non-GAAP net income for the second quarter of 2026 was $20.9 million or $0.37 per diluted share compared to $0.25 per diluted share in the prior quarter and $0.35 per diluted share in the second quarter of 2025. A reconciliation of GAAP to non-GAAP financial results and outlook is included with the tables accompanying this press release.

Power Integrations CEO Jen Lloyd commented: “We delivered strong second-quarter results, highlighted by continued growth in industrial markets, improved profitability, and lower inventories in the distribution channel and on our balance sheet. The demand drivers behind our business remain compelling, as investment in renewable energy, grid infrastructure and AI data centers drives customer demand for higher efficiency, reliability and power density. Our new 2200 V PowiGaN™ technology extends our capabilities in high-voltage GaN and positions us to support customer roadmaps in these markets over the long term.”

Power Integrations paid a dividend of $0.215 per share on June 30, 2026 to stockholders of record as of May 29, 2026. A dividend of $0.215 per share will be paid on September 30, 2026, to stockholders of record as of August 31, 2026.

Financial Outlook

The company issued the following outlook for the third quarter of 2026:

  • Revenue is expected to be in a range of $122 million to $130 million.

  • GAAP gross margin is expected to be between 53.3 percent and 54.4 percent, and non-GAAP gross margin is expected to be between 54 percent and 55 percent.

  • GAAP operating expenses are expected to be between $55 million and $56 million, and non-GAAP operating expenses are expected to be between $45 million and $46 million.

  • GAAP operating margin is expected to be between 8.3 percent and 10.9 percent, and non-GAAP operating margin is expected to be between 17 percent and 19 percent.

Conference Call Information and Supplemental Materials

Power Integrations management will hold a conference call today at 1:30 p.m. Pacific time. A live webcast of the call will be available on the company’s investor web page, http://investors.power.com, along with supplemental materials related to today’s earnings release.

About Power Integrations

Power Integrations, Inc. is a leading innovator in semiconductor technologies for high-voltage power conversion. The company’s products are key building blocks in the clean-power ecosystem, enabling the generation of renewable energy as well as the efficient transmission, conversion and consumption of power in applications ranging from milliwatts to megawatts including AI data centers, EVs and energy infrastructure. For more information, please visit www.power.com.

Note Regarding Use of Non-GAAP Financial Measures

The non-GAAP measures provided in this press release, including non-GAAP earnings per diluted share, non-GAAP net income, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating margin, should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles (GAAP) in the United States. The non-GAAP financial measures are presented only as supplemental information to understand the Company’s operating results. In addition to the company’s consolidated financial statements, which are presented according to GAAP, the company provides certain non-GAAP financial information that excludes stock-based compensation expenses recorded under ASC 718-10, amortization of acquisition-related intangible assets, accrual for a judgment in a legal matter, a restructuring charge recognized in the first quarter of 2026, and the tax effects of these items. The company considers these non-GAAP financial measures to be important because they provide additional insight into the company’s on-going performance; the company uses these measures in its financial and operational decision-making and, with respect to non-GAAP operating income, in setting performance targets for compensation purposes. The company believes that these non-GAAP measures offer important analytical tools to help investors understand its operating results, to enable more meaningful and consistent period-to-period comparisons, and to facilitate comparability with the results of companies that provide similar measures. Non-GAAP measures have limitations as analytical tools, do not have any standardized meanings and are therefore unlikely to be comparable to similarly titled measures presented by other companies, and are not meant to be considered in isolation or as a substitute for GAAP financial information. For example, stock-based compensation is an important component of the company’s compensation mix and will continue to result in significant expenses in the company’s GAAP results for the foreseeable future but is not reflected in the non-GAAP measures. Reconciliations of non-GAAP measures to GAAP measures are attached to this press release.

Note Regarding Forward-Looking Statements

Certain statements included in this press release that are not historical facts are forward-looking statements within the meaning of the federal securities laws, including the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance and are sometimes accompanied by words such as “believe,” “continue,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “predict,” “plan,” “may,” “should,” “will,” “would,” “potential,” “seem,” “seek,” “outlook,” and similar expressions that concern the Company’s expectations, strategy, priorities, plans, or intentions, predict or indicate future events or trends, or that are not statements of historical matters. Forward-looking statements are predictions, projections, and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Forward-looking statements in this press release include, without limitation, the Company’s outlook for the third quarter of 2026, the trends and assumptions underlying such outlook, including the continuation of growth and demand drivers, the Company’s expectations regarding new technology, and the Company’s anticipated upcoming dividend, including the timing and amount of such dividend, among others. These statements are based on various assumptions, whether or not identified in this press release. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are very difficult or impossible to predict and will differ from the assumptions. Many actual events and circumstances are beyond the control of the Company. The Company’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements in this press release, including but not limited to: (i) the risks that the demand drivers behind the Company’s business may not continue to the extent anticipated, or at all; (ii) the risks that the investments in renewable energy, grid infrastructure, and AI data centers may not drive Company customer demand to the extent or in the time frame anticipated, or at all; (iii) the risks that the Company’s new 2200 V PowiGaN™ technology may not extend the Company’s capabilities in high-voltage GaN nor position the Company to support customer roadmaps over the long term to the extent or in the time frame anticipated, or at all; (iv) the risks that the Company may not be in a position to pay the $0.215 per share dividend on September 30, 2026 as currently anticipated due to unforeseen circumstances; (v) the Company’s ability to forecast its performance; (vi) changes in trade policies, in particular the escalation and imposition of new and higher tariffs, which could reduce demand for end products that incorporate the Company’s integrated circuits and/or place pressure on the Company’s prices as the Company’s customers seek to offset the impact of increased tariffs on their own products; (vii) the Company’s ability to supply products and its ability to conduct other aspects of its business, such as competing for new design wins; (viii) changes in global economic and geopolitical conditions, including such factors as inflation, armed conflicts, and trade negotiations, which may impact the level of demand for the Company’s products; (ix) potential changes and shifts in customer demand away from end products that utilize the Company’s integrated circuits to end products that do not incorporate the Company’s products; (x) the effects of competition, which may cause the Company’s revenue to decrease or cause the Company to decrease its selling prices for its products; (xi) unforeseen costs and expenses, and unfavorable fluctuations in component costs or operating expenses resulting from changes in commodity prices and/or exchange rates; and (xii) product development delays and defects and market acceptance of the new products. These risks and uncertainties may be amplified by current or future global conflicts and current and potential trade restrictions, trade tensions, and tariffs, all of which continue to cause economic uncertainty. You should carefully consider the foregoing factors and the other risks and uncertainties, including those more fully described in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q that the Company has caused to be filed with the U.S. Securities and Exchange Commission, or the SEC, and other documents filed by the Company or that will be filed by the Company from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements in this press release are based only on information currently available to the Company and speak only as of the date they are made.

Investors are cautioned not to put undue reliance on forward-looking statements, and the Company disclaims any obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. The Company gives no assurance that the Company will achieve any of its expectations.

Power Integrations, PowiGaN and the Power Integrations logo are trademarks or registered trademarks of Power Integrations, Inc. All other trademarks are property of their respective owners.

 

POWER INTEGRATIONS, INC.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except per-share amounts)

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

June 30,

2026

 

March 31,

2026

 

June 30,

2025

 

June 30,

2026

 

June 30,

2025

Net revenue

$

118,939

 

 

$

108,308

 

 

$

115,852

 

 

$

227,247

 

 

$

221,381

 

Cost of revenue

 

54,302

 

 

 

51,370

 

 

 

51,898

 

 

 

105,672

 

 

 

99,192

 

Gross profit

 

64,637

 

 

 

56,938

 

 

 

63,954

 

 

 

121,575

 

 

 

122,189

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development

 

27,163

 

 

 

26,255

 

 

 

25,991

 

 

 

53,418

 

 

 

50,086

 

Selling, general and administrative

 

28,052

 

 

 

24,444

 

 

 

30,157

 

 

 

52,496

 

 

 

57,579

 

Other operating expenses (income)

 

522

 

 

 

(1,419

)

 

 

9,151

 

 

 

(897

)

 

 

9,151

 

Restructuring and related charges

 

—

 

 

 

6,204

 

 

 

—

 

 

 

6,204

 

 

 

—

 

Total operating expenses

 

55,737

 

 

 

55,484

 

 

 

65,299

 

 

 

111,221

 

 

 

116,816

 

Income (loss) from operations

 

8,900

 

 

 

1,454

 

 

 

(1,345

)

 

 

10,354

 

 

 

5,373

 

Other income

 

2,333

 

 

 

2,466

 

 

 

2,690

 

 

 

4,799

 

 

 

5,857

 

Income before income taxes

 

11,233

 

 

 

3,920

 

 

 

1,345

 

 

 

15,153

 

 

 

11,230

 

Provision for (benefit from) income taxes

 

1,400

 

 

 

620

 

 

 

(24

)

 

 

2,020

 

 

 

1,071

 

NET INCOME

$

9,833

 

 

$

3,300

 

 

$

1,369

 

 

$

13,133

 

 

$

10,159

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

Basic

$

0.18

 

 

$

0.06

 

 

$

0.02

 

 

$

0.24

 

 

$

0.18

 

Diluted

$

0.17

 

 

$

0.06

 

 

$

0.02

 

 

$

0.23

 

 

$

0.18

 

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculation:

 

 

 

 

 

 

 

 

 

Basic

 

55,748

 

 

 

55,506

 

 

 

56,274

 

 

 

55,627

 

 

 

56,571

 

Diluted

 

56,696

 

 

 

55,874

 

 

 

56,387

 

 

 

56,335

 

 

 

56,787

 

 

 

 

POWER INTEGRATIONS, INC.

CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands)

 

 

 

 

 

 

 

June 30,

2026

 

December 31,

2025

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

70,612

 

 

$

58,755

 

Short-term investments

 

192,001

 

 

 

190,755

 

Accounts receivable, net

 

26,778

 

 

 

18,254

 

Inventories

 

157,790

 

 

 

166,887

 

Prepaid expenses and other current assets

 

23,983

 

 

 

23,678

 

Total current assets

 

471,164

 

 

 

458,329

 

 

 

 

 

Property and equipment, net

 

142,143

 

 

 

146,536

 

Intangible assets, net

 

6,893

 

 

 

7,244

 

Goodwill

 

95,271

 

 

 

95,271

 

Other non-current assets

 

63,535

 

 

 

64,827

 

TOTAL ASSETS

$

779,006

 

 

$

772,207

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

28,645

 

 

$

33,963

 

Accrued payroll and related expenses

 

13,104

 

 

 

13,840

 

Other accrued liabilities

 

24,899

 

 

 

22,558

 

Total current liabilities

 

66,648

 

 

 

70,361

 

 

 

 

 

Long-term liabilities

 

 

 

Other liabilities

 

31,830

 

 

 

29,001

 

TOTAL LIABILITIES

 

98,478

 

 

 

99,362

 

 

 

 

 

STOCKHOLDERS’ EQUITY:

 

 

 

Common stock

 

20

 

 

 

20

 

Additional paid-in capital

 

20,230

 

 

 

—

 

Accumulated other comprehensive loss

 

(2,948

)

 

 

(1,105

)

Retained earnings

 

663,226

 

 

 

673,930

 

TOTAL STOCKHOLDERS’ EQUITY

 

680,528

 

 

 

672,845

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

779,006

 

 

$

772,207

 

POWER INTEGRATIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands)

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

2026

 

June 30,

2025

 

June 30,

2026

 

June 30,

2025

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

Net income

$

9,833

 

 

$

1,369

 

 

$

13,133

 

 

$

10,159

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation

 

6,239

 

 

 

7,002

 

 

 

12,619

 

 

 

14,246

 

Amortization of intangible assets

 

168

 

 

 

208

 

 

 

351

 

 

 

415

 

Loss on disposal of property and equipment

 

446

 

 

 

—

 

 

 

495

 

 

 

—

 

Stock-based compensation expense

 

11,258

 

 

 

10,077

 

 

 

17,565

 

 

 

18,760

 

Accretion of discount on investments

 

(144

)

 

 

(375

)

 

 

(300

)

 

 

(721

)

Deferred income taxes

 

711

 

 

 

1,683

 

 

 

1,758

 

 

 

(854

)

Decrease in accounts receivable allowance for credit losses

 

—

 

 

 

—

 

 

 

—

 

 

 

(381

)

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(12,371

)

 

 

(4,777

)

 

 

(8,524

)

 

 

(30

)

Inventories

 

5,192

 

 

 

672

 

 

 

9,097

 

 

 

(2,784

)

Prepaid expenses and other assets

 

1,558

 

 

 

3,036

 

 

 

3,925

 

 

 

6,405

 

Accounts payable

 

(3,138

)

 

 

(3,754

)

 

 

(7,210

)

 

 

248

 

Other accrued liabilities

 

2,228

 

 

 

13,931

 

 

 

(884

)

 

 

9,995

 

Net cash provided by operating activities

 

21,980

 

 

 

29,072

 

 

 

42,025

 

 

 

55,458

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

Purchases of property and equipment

 

(4,302

)

 

 

(5,926

)

 

 

(6,300

)

 

 

(11,652

)

Purchases of investments

 

(9,269

)

 

 

(42,066

)

 

 

(24,076

)

 

 

(47,696

)

Proceeds from sales and maturities of investments

 

10,700

 

 

 

80,610

 

 

 

21,355

 

 

 

96,492

 

Net cash provided by (used in) investing activities

 

(2,871

)

 

 

32,618

 

 

 

(9,021

)

 

 

37,144

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

Issuance of common stock under employee stock plans

 

—

 

 

 

—

 

 

 

2,690

 

 

 

2,787

 

Repurchase of common stock

 

—

 

 

 

(32,560

)

 

 

—

 

 

 

(55,658

)

Payments of dividends to stockholders

 

(11,887

)

 

 

(11,809

)

 

 

(23,837

)

 

 

(23,768

)

Proceeds from borrowings on line of credit

 

—

 

 

 

13,000

 

 

 

—

 

 

 

13,000

 

Repayments on line of credit

 

—

 

 

 

(13,000

)

 

 

—

 

 

 

(13,000

)

Net cash used in financing activities

 

(11,887

)

 

 

(44,369

)

 

 

(21,147

)

 

 

(76,639

)

 

 

 

 

 

 

 

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

 

7,222

 

 

 

17,321

 

 

 

11,857

 

 

 

15,963

 

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

 

63,390

 

 

 

49,614

 

 

 

58,755

 

 

 

50,972

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

$

70,612

 

 

$

66,935

 

 

$

70,612

 

 

$

66,935

 
 

POWER INTEGRATIONS, INC.

SUPPLEMENTAL INFORMATION (Unaudited)

(in thousands)

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

June 30,

2026

 

March 31,

2026

 

June 30,

2025

 

June 30,

2026

 

June 30,

2025

Stock-based compensation expense included in:

 

 

 

 

 

 

 

 

 

Cost of revenue

$

707

 

 

$

469

 

 

$

592

 

 

$

1,176

 

 

$

1,249

 

Research and development

 

3,036

 

 

 

1,904

 

 

 

3,190

 

 

 

4,940

 

 

 

5,440

 

Selling, general and administrative

 

6,993

 

 

 

3,526

 

 

 

6,295

 

 

 

10,519

 

 

 

12,071

 

Other operating expenses (income)

 

522

 

 

 

(1,419

)

 

 

—

 

 

 

(897

)

 

 

—

 

Restructuring and related charges

 

—

 

 

 

1,827

 

 

 

—

 

 

 

1,827

 

 

 

—

 

Total stock-based compensation expense

$

11,258

 

 

$

6,307

 

 

$

10,077

 

 

$

17,565

 

 

$

18,760

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue includes:

 

 

 

 

 

 

 

 

 

Amortization of acquisition-related intangible assets

$

147

 

 

$

147

 

 

$

146

 

 

$

294

 

 

$

293

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

June 30,

2026

 

March 31,

2026

 

June 30,

2025

 

June 30,

2026

 

June 30,

2025

Revenue Mix by End Market

 

 

 

 

 

 

 

 

 

Communications

 

10

%

 

 

10

%

 

 

11

%

 

 

10

%

 

 

10

%

Computer

 

11

%

 

 

11

%

 

 

12

%

 

 

11

%

 

 

12

%

Consumer

 

36

%

 

 

38

%

 

 

37

%

 

 

37

%

 

 

41

%

Industrial

 

43

%

 

 

41

%

 

 

40

%

 

 

42

%

 

 

37

%

 

Six Months Ended

 

June 30,

2026

RECONCILIATION OF FREE CASH FLOW

 

Cash flows from operations

$

42,025

 

Purchases of property and equipment

 

(6,300

)

Free cash flow

$

35,725

 
 

POWER INTEGRATIONS, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS (Unaudited)

(in thousands, except per-share amounts)

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

2026

 

March 31,

2026

 

June 30,

2025

 

June 30,

2026

 

June 30,

2025

RECONCILIATION OF GROSS PROFIT

 

 

 

 

 

 

 

 

 

GAAP gross profit

$

64,637

 

 

$

56,938

 

 

$

63,954

 

 

$

121,575

 

 

$

122,189

 

GAAP gross margin

 

54.3

%

 

 

52.6

%

 

 

55.2

%

 

 

53.5

%

 

 

55.2

%

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

Stock-based compensation included in cost of revenue

 

707

 

 

 

469

 

 

 

592

 

 

 

1,176

 

 

 

1,249

 

Amortization of acquisition-related intangible assets

 

147

 

 

 

147

 

 

 

146

 

 

 

294

 

 

 

293

 

Restructuring and related charges in cost of revenue (b)

 

—

 

 

 

365

 

 

 

—

 

 

 

365

 

 

 

—

 

Total

 

854

 

 

 

981

 

 

 

738

 

 

 

1,835

 

 

 

1,542

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP gross profit

$

65,491

 

 

$

57,919

 

 

$

64,692

 

 

$

123,410

 

 

$

123,731

 

Non-GAAP gross margin

 

55.1

%

 

 

53.5

%

 

 

55.8

%

 

 

54.3

%

 

 

55.9

%

 

Three Months Ended

 

Six Months Ended

 

June 30,

2026

 

March 31,

2026

 

June 30,

2025

 

June 30,

2026

 

June 30,

2025

RECONCILIATION OF OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

GAAP operating expenses

$

55,737

 

 

$

55,484

 

 

$

65,299

 

 

$

111,221

 

 

$

116,816

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

Stock-based compensation unrelated to restructuring

 

10,029

 

 

 

5,430

 

 

 

9,485

 

 

 

15,459

 

 

 

17,511

 

Other operating expenses (income) (a)

 

522

 

 

 

(1,419

)

 

 

9,151

 

 

 

(897

)

 

 

9,151

 

Restructuring and related charges (b)

 

—

 

 

 

6,204

 

 

 

—

 

 

 

6,204

 

 

 

—

 

Total

 

10,551

 

 

 

10,215

 

 

 

18,636

 

 

 

20,766

 

 

 

26,662

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP operating expenses

$

45,186

 

 

$

45,269

 

 

$

46,663

 

 

$

90,455

 

 

$

90,154

 

 

 

 

 

POWER INTEGRATIONS, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS (Unaudited)

(in thousands, except per-share amounts)

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

2026

 

March 31,

2026

 

June 30,

2025

 

June 30,

2026

 

June 30,

2025

RECONCILIATION OF INCOME (LOSS) FROM OPERATIONS

 

 

 

 

 

 

 

 

 

GAAP income (loss) from operations

$

8,900

 

 

$

1,454

 

 

$

(1,345

)

 

$

10,354

 

 

$

5,373

 

GAAP operating margin

 

7.5

%

 

 

1.3

%

 

 

(1.2

%)

 

 

4.6

%

 

 

2.4

%

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

Stock-based compensation unrelated to restructuring

 

10,736

 

 

 

5,899

 

 

 

10,077

 

 

 

16,635

 

 

 

18,760

 

Amortization of acquisition-related intangible assets

 

147

 

 

 

147

 

 

 

146

 

 

 

294

 

 

 

293

 

Other operating expenses (income) (a)

 

522

 

 

 

(1,419

)

 

 

9,151

 

 

 

(897

)

 

 

9,151

 

Restructuring and related charges (b)

 

—

 

 

 

6,569

 

 

 

—

 

 

 

6,569

 

 

 

—

 

Total

 

11,405

 

 

 

11,196

 

 

 

19,374

 

 

 

22,601

 

 

 

28,204

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP income from operations

$

20,305

 

 

$

12,650

 

 

$

18,029

 

 

$

32,955

 

 

$

33,577

 

Non-GAAP operating margin

 

17.1

%

 

 

11.7

%

 

 

15.6

%

 

 

14.5

%

 

 

15.2

%

 

Three Months Ended

 

Six Months Ended

 

June 30,

2026

 

March 31,

2026

 

June 30,

2025

 

June 30,

2026

 

June 30,

2025

RECONCILIATION OF PROVISION (BENEFIT) FOR INCOME TAXES

 

 

 

 

 

 

 

 

 

GAAP provision for (benefit from) income taxes

$

1,400

 

 

$

620

 

 

$

(24

)

 

$

2,020

 

 

$

1,071

 

GAAP effective tax rate

 

12.5

%

 

 

15.8

%

 

 

(1.8

%)

 

 

13.3

%

 

 

9.5

%

 

 

 

 

 

 

 

 

 

 

Tax effect of adjustments to GAAP results (c)

 

(363

)

 

 

(611

)

 

 

(871

)

 

 

(974

)

 

 

(632

)

 

 

 

 

 

 

 

 

 

 

Non-GAAP provision for income taxes

$

1,763

 

 

$

1,231

 

 

$

847

 

 

$

2,994

 

 

$

1,703

 

Non-GAAP effective tax rate

 

7.8

%

 

 

8.1

%

 

 

4.1

%

 

 

7.9

%

 

 

4.3

%
 

POWER INTEGRATIONS, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS (Unaudited)

(in thousands, except per-share amounts)

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

2026

 

March 31,

2026

 

June 30,

2025

 

June 30,

2026

 

June 30,

2025

RECONCILIATION OF NET INCOME PER SHARE (DILUTED)

 

 

 

 

 

 

 

 

 

GAAP net income

$

9,833

 

 

$

3,300

 

 

$

1,369

 

 

$

13,133

 

 

$

10,159

 

 

 

 

 

 

 

 

 

 

 

Adjustments to GAAP net income:

 

 

 

 

 

 

 

 

 

Total stock-based compensation unrelated to restructuring

 

10,736

 

 

 

5,899

 

 

 

10,077

 

 

 

16,635

 

 

 

18,760

 

Amortization of acquisition-related intangible assets

 

147

 

 

 

147

 

 

 

146

 

 

 

294

 

 

 

293

 

Other operating expenses (income) (a)

 

522

 

 

 

(1,419

)

 

 

9,151

 

 

 

(897

)

 

 

9,151

 

Restructuring and related charges (b)

 

—

 

 

 

6,569

 

 

 

—

 

 

 

6,569

 

 

 

—

 

Tax effect of adjustments to GAAP results (c)

 

(363

)

 

 

(611

)

 

 

(871

)

 

 

(974

)

 

 

(632

)

Total

 

11,042

 

 

 

10,585

 

 

 

18,503

 

 

 

21,627

 

 

 

27,572

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income

$

20,875

 

 

$

13,885

 

 

$

19,872

 

 

$

34,760

 

 

$

37,731

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding for calculation of non-GAAP net income per share (diluted)

 

56,696

 

 

 

55,874

 

 

 

56,387

 

 

 

56,335

 

 

 

56,787

 

 

 

 

 

 

 

 

 

 

 

GAAP net income per share (diluted)

$

0.17

 

 

$

0.06

 

 

$

0.02

 

 

$

0.23

 

 

$

0.18

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share (diluted)

$

0.37

 

 

$

0.25

 

 

$

0.35

 

 

$

0.62

 

 

$

0.66

 
____________________

(a)

Other operating expenses (income) consists of stock-based compensation expense (benefit) resulting from modification of equity awards associated with an executive’s employment transition and retirement arrangements as well as a judgment in a legal matter.

 

(b)

Restructuring and related charges are associated with the Company’s February 2026 restructuring action and consist primarily of employee severance.

 

(c)

Tax effect of items excluded from non-GAAP results relate to the tax effect of non-GAAP adjustments using a non-GAAP effective tax rate of 7.8% and 7.9% for the three and six months ended June 30, 2026, respectively.
 

POWER INTEGRATIONS, INC.

RECONCILIATION OF NON-GAAP MEASURES TO GAAP IN THIRD-QUARTER 2026 OUTLOOK

(dollar amounts in millions)
 

RECONCILIATION OF GROSS MARGIN OUTLOOK

LOW

 

HIGH

GAAP gross margin outlook

 

53.3

%

 

 

54.4

%

 

 

 

 

Adjustments to reconcile GAAP to non-GAAP

 

 

 

Stock-based compensation included in cost of revenue

 

0.6

%

 

 

0.5

%

Amortization of acquisition-related intangible assets

 

0.1

%

 

 

0.1

%

 

 

 

 

Non-GAAP gross margin outlook

 

54.0

%

 

 

55.0

%

 

 

 

 

 

 

 

 

RECONCILIATION OF OPERATING EXPENSE OUTLOOK

LOW

 

HIGH

GAAP operating-expense outlook

$

55.0

 

 

$

56.0

 

 

 

 

 

Adjustments to reconcile GAAP to non-GAAP

 

 

 

Stock-based compensation

 

(10.0

)

 

 

(10.0

)

 

 

 

 

Non-GAAP operating-expense outlook

$

45.0

 

 

$

46.0

 

 

 

 

 

 

 

 

 

RECONCILIATION OF OPERATING MARGIN OUTLOOK

LOW

 

HIGH

GAAP operating margin outlook

 

8.3

%

 

 

10.9

%

 

 

 

 

Adjustments to reconcile GAAP to non-GAAP

 

 

 

Stock-based compensation

 

8.6

%

 

 

8.0

%

Amortization of acquisition-related intangible assets

 

0.1

%

 

 

0.1

%

 

 

 

 

Non-GAAP operating margin outlook

 

17.0

%

 

 

19.0

%

 

Joe Shiffler

Power Integrations, Inc.

(408) 414-8528

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Other Energy Batteries Hardware Alternative Energy Energy Technology Semiconductor Other Technology

MEDIA:

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Posted on

LegalZoom Reports Second Quarter 2026 Financial Results

  • Revenue of
    $205.3 million,
    up 7% year-over-year, driven by subscription revenue increasing 11% year-over-year, representing LegalZoom’s fifth consecutive quarter of double digit subscription revenue growth
  • Subscription revenue of $133.4 million
    up 11% year-over-year from strength in human-in-the-loop offerings and pricing initiatives
  • Net income of
    $5.2 million
    and net income margin of 3%; with net income margin increasing approximately 260 basis points year-over-year
  • Adjusted EBITDA of
    $45.9 million
    and Adjusted EBITDA margin of 22%, ahead of the high end of our guidance range; with Adjusted EBITDA margin increasing approximately 220 basis points year-over-year
  • Commitment to shareholder returns; completed
    $45.5 million
    of share repurchases in the quarter, with approximately $80.4 million remaining under the existing authorization
  • Ended the quarter with cash and cash equivalents of $167.2 million and delivered $39.5 million in cash from operating activities and $33.7 million in free cash flow with no debt outstanding as of June 30, 2026
  • Updating full-year 2026 revenue outlook to $795.0-$805.0 million and Adjusted EBITDA to $190.0-$195.0 million, reflecting the recent industry-wide shift in customer discovery away from traditional search, while maintaining strong margin discipline

MOUNTAIN VIEW, Calif., Aug. 05, 2026 (GLOBE NEWSWIRE) — LegalZoom (Nasdaq: LZ), America’s #1 online legal services company, today announced results for its second quarter ended June 30, 2026.

“Since late 2024, we’ve deliberately repositioned LegalZoom around subscription relationships that pair AI with trusted human expertise,” said Jeff Stibel, Chairman and Chief Executive Officer of LegalZoom. “That strategy is working. While demand for what we do is intact, discovery is moving. We have been actively building new customer acquisition channels for more than a year, and our outlook fully reflects today’s environment, with no recovery in traditional search assumed. In the AI channels where discovery is heading, every visit is incremental. We’ve partnered with the leading AI companies, we have more brand references across AI platforms than any competitor, and we haven’t assumed how quickly this scales. That’s the upside we’re positioned to capture.”

“We’re updating our revenue expectations based on recent changes in the customer acquisition environment, while our profitability outlook reflects the discipline of our operating model,” said Noel Watson, Chief Operating Officer and Chief Financial Officer. “We continue to improve operating efficiency, expand margins and generate strong cash flow while investing behind the initiatives that support our long-term growth strategy.”

Second
Quarter
2026
Highlights

  • Revenue was $205.3 million for the quarter, up 7% year-over-year.
    • Transaction revenue of $71.9 million decreased 1% year-over-year.
    • Subscription revenue of $133.4 million grew 11% year-over-year.
  • Net income was $5.2 million for the quarter, or 3% of revenue, compared to a net loss of $0.3 million, or less than 1% of revenue, in the same period in 2025.
  • Adjusted EBITDA was $45.9 million for the quarter, or 22% of revenue, compared to $39.0 million, or 20% of revenue, in the same period in 2025.
  • Non-GAAP net income was $27.4 million for the quarter compared to $28.3 million in the same period in 2025.
  • Cash and cash equivalents were $167.2 million as of June 30, 2026 compared to $203.1 million as of December 31, 2025.
  • Cash flows provided by operating activities were $39.5 million for the quarter ended June 30, 2026 compared to $39.1 million in the same period in 2025.
  • Free cash flow was $33.7 million for the quarter ended June 30, 2026 compared to $31.6 million in the same period in 2025.
  • Basic and diluted net income per share was $0.03 for the quarter compared to a basic and diluted net loss per share of $— for the same period in 2025. Basic and diluted Non-GAAP net income per share was $0.16 for the quarter compared to basic and diluted Non-GAAP net income per share of $0.16 and $0.15, respectively, for the same period in 2025.

Key Business Metrics and Non-GAAP Financial Measures

(Unaudited, in thousands except AOV, ARPU and percentages)

  Three Months Ended
June 30,
   % Growth   Six Months Ended
June 30, 		  % Growth
    (Decline)     (Decline)
  2026
     2025     YOY     2026       2025     YOY
Total revenue $ 205,289     $ 192,509     7 %   $ 412,070     $ 375,619     10 %
Transaction revenue $ 71,890     $ 72,611     (1 )%   $ 148,513     $ 139,464     6 %
Subscription revenue $ 133,399     $ 119,898     11 %   $ 263,557     $ 236,155     12 %
Gross profit $ 139,930     $ 125,111     12 %   $ 272,183     $ 241,661     13 %
Gross margin   68 %     65 %   5 %     66 %     64 %   3 %
Net Income (loss) $ 5,183     $ (266 )   n/m   $ 6,287     $ 4,861     29 %
Net income (loss) margin   3 %     — %   n/m     2 %     1 %   100 %
Net Income (loss) per share — basic: $ 0.03     $ —     n/m   $ 0.04     $ 0.03     33 %
Net Income (loss) per share — diluted: $ 0.03     $ —     n/m   $ 0.04     $ 0.03     33 %
Net cash provided by operating activities $ 39,547     $ 39,139     1 %   $ 86,829     $ 89,842     (3 )%
Non-GAAP Financial Measures                      
Non GAAP net income $ 27,444     $ 28,329     (3 )%   $ 49,515     $ 52,151     (5 )%
Non GAAP net income per share — basic: $ 0.16     $ 0.16     — %   $ 0.28     $ 0.29     (3 )%
Non GAAP net income per share — diluted: $ 0.16     $ 0.15     7 %   $ 0.28     $ 0.29     (3 )%
Adjusted EBITDA $ 45,898     $ 38,965     18 %   $ 82,360     $ 75,977     8 %
Adjusted EBITDA margin   22 %     20 %   10 %     20 %     20 %   — %
Free cash flow $ 33,690     $ 31,609     7 %   $ 74,664     $ 72,934     2 %
Key Business Metrics                      
Transaction units   281       278     1 %     656       619     6 %
Business formations   125       131     (5 )%     267       262     2 %
Average order value (AOV) $ 256     $ 262     (2 )%   $ 227     $ 225     1 %
Subscription units at period end   1,892       1,955     (3 )%     1,892       1,955     (3 )%
Average revenue per subscription unit (ARPU) at period end $ 270     $ 256     5 %   $ 270     $ 256     5 %
Certain percentages may not recalculate due to rounding.            
             

Financial Guidance and Outlook
LegalZoom is updating its revenue outlook and Adjusted EBITDA outlook for the full year ending December 31, 2026 as follows:

  • Revenue is expected to be in the range of $795 million to $805 million, or 6% year-over-year growth at the midpoint. This compares to the Company’s previous revenue outlook in the range of $810 million to $830 million, or 8% growth at the midpoint. LegalZoom’s outlook reflects the continued scaling of our higher-value growth initiatives and ongoing momentum from our partner channel, partially offset by a more cautious view of customer acquisition for the remainder of the year.
  • Adjusted EBITDA is expected to be in the range of $190 million to $195 million, reflecting 12% year-over-year growth at the midpoint, and a 24% margin. This compares to the Company’s previous Adjusted EBITDA outlook of $190 million to $200 million, or 13% year-over-year growth, and a 24% margin. LegalZoom’s outlook reflects disciplined cost management, ongoing gross margin improvement and the benefits from a 13% workforce reduction announced today.

For the third quarter ending September 30, 2026 LegalZoom expects:

  • Revenue in the range of $192 million to $196 million, or 2% year-over-year growth at the midpoint.
  • Adjusted EBITDA in the range of $49 million to $51 million, an 8% year-over-year increase at the midpoint, and a 26% margin.

Webcast and Conference Call Information
A webcast and conference call to discuss second quarter 2026 results is scheduled for today, August 5, 2026, at 4:30 p.m. Eastern time/1:30 p.m. Pacific time. Those interested in participating in the conference call are invited to register Here.

A live audio webcast of the event will be available on the LegalZoom Investor Relations website: https://investors.legalzoom.com. An archived replay of the webcast also will be available shortly after the live event.

Forward-Looking Statements

This press release contains forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Forward-looking statements contained in this press release include, but are not limited to, statements regarding our quarterly and annual guidance.

The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the following: our dependence on business formations; our dependence on customers expanding the use of our platform, including converting our transactional customers to subscribers and our subscribers renewing their subscriptions with us; the impact of macroeconomic challenges or uncertainty on our business; our ability to remain profitable in the future; our ability to provide high-quality products and services, customer care and customer experience; our ability to continue to innovate and provide a platform that is useful to our customers and that meets our customers’ expectations; the competitive legal solutions market; our dependence on our brand and reputation; our ability to maintain and expand strategic relationships with third parties; our ability to hire and retain top talent and motivate our employees; risks and costs associated with complex and evolving laws and regulations; our ability to maintain effective in our internal control over financial reporting; and any factors discussed in the section titled “Risk Factors” included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2026 filed with the Securities and Exchange Commission (the “SEC”) on May 6, 2026, as well as any factors in our subsequent filings with the SEC. The forward-looking statements in this press release are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

You should read this press release with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this press release, whether as a result of any new information, future events or otherwise.

About Non-GAAP Financial Measures

This press release includes non-GAAP financial measures including Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP net income, Non-GAAP net income (loss) margin, Non-GAAP net income per share and free cash flow. We use these non-GAAP financial measures to better understand and evaluate our core operating performance. We believe that these non-GAAP financial measures provide management and our investors with useful information about our financial performance and liquidity, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important measures used by our management for financial and operational decision-making. We also believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. These non-GAAP measures should not be considered in isolation of, or as a substitute or an alternative to, measures prepared and presented in accordance with GAAP.

We define Adjusted EBITDA as net income (loss) adjusted to exclude interest expense, interest income, provision for (benefit from) income taxes, depreciation and amortization, other expense (income), net, stock-based compensation and certain non-recurring income and expenses from time to time. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of revenue.

Adjusted EBITDA is one of the primary performance measures used by our management and our board of directors to understand and evaluate our financial performance and operating trends, including period-to-period comparisons, preparing and approving our annual budget and operational planning. In assessing our performance, we exclude certain expenses that we believe are not comparable period over period or that we believe are not indicative of our underlying operating performance. There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), which include that Adjusted EBITDA:

  • may be calculated differently by other companies in our industry, limiting its usefulness as a comparative measure;
  • does not reflect our capital expenditures, future requirements for capital expenditures or contractual commitments;
  • excludes depreciation and amortization and, although these are non-cash expenses, the assets being depreciated may be replaced in the future;
  • does not reflect changes in, or cash requirements for, our working capital needs;
  • excludes stock-based compensation expense, which has been, and will continue to be, a significant recurring expense for our business and an important part of our compensation strategy; and
  • does not reflect certain expenses that we do not consider representative of our underlying operating performance, but that reduce cash available to us.

We define Non-GAAP net income as net income (loss) adjusted to exclude amortization of acquired intangible assets, stock-based compensation expense and certain non-recurring income and expenses from time to time, net of related income tax impacts. We define net income (loss) margin as net loss as a percentage of revenue. We define Non-GAAP net income (loss) margin as Non-GAAP net income as a percentage of revenue. We define Non-GAAP net income (loss) per share attributable to common stockholders as Non-GAAP net income (loss) divided by basic and diluted weighted-average common stock.

Free cash flow is a liquidity measure used by management in evaluating the cash generated by our operations after purchases of property and equipment including capitalized internal-use software. We believe free cash flow provides useful information to management and investors about the amount of cash generated by our business that can be used for strategic opportunities, including investing in our business and strengthening our balance sheet, once our business needs and obligations are met. The usefulness of free cash flow as an analytical tool has limitations because it excludes certain items that are settled in cash, does not represent residual cash flow available for discretionary expenses, does not reflect our future contractual commitments, and may be calculated differently by other companies in our industry.

We are not providing a reconciliation for our non-GAAP outlook on a forward-looking basis (including the information under “Financial Guidance and Outlook” above), as we are unable to provide a meaningful calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing or amount of various items that would impact the most directly comparable forward-looking GAAP financial measure that have not yet occurred, are out of LegalZoom’s control and/or cannot be reasonably predicted. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

The tables in this press release contain more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.

About LegalZoom

LegalZoom is a leading online platform for legal services, transforming how individuals and small businesses navigate the legal system. By combining intuitive technology with access to experienced attorneys, whether through our vast independent attorney network or our own law firm, we offer the tools and guidance people need to confidently manage everything from business formation and compliance to intellectual property protection and ongoing business management and legal support. As AI reshapes how legal work gets done, LegalZoom is at the forefront of the human-in-the-loop approach, ensuring that the speed and efficiency of AI is always backed by the judgment and accountability of qualified professionals.

With over two decades of experience and millions of customers served, LegalZoom helps individuals and small businesses navigate legal needs with confidence. For more information, please visit www.legalzoom.com.

Contact
Investor Relations
[email protected]

LegalZoom.com, Inc.

Unaudited Condensed Consolidated Balance Sheets

(In
thousands, except par values)
       
  June 30,
2026 		  December 31,
2025
Assets      
Current assets:      
Cash and cash equivalents $ 167,227     $ 203,100  
Accounts receivable, net of allowance   19,759       20,589  
Prepaid expenses and other current assets   25,187       18,234  
Total current assets   212,173       241,923  
Property and equipment, net   53,540       58,045  
Goodwill   140,705       140,705  
Intangible assets, net   14,932       18,152  
Operating lease right-of-use assets   14,150       13,414  
Deferred income taxes   24,095       31,884  
Other assets   6,764       7,399  
Total assets $ 466,359     $ 511,522  
Liabilities and stockholders’ equity      
Current liabilities:      
Accounts payable $ 35,875     $ 27,167  
Accrued expenses and other current liabilities   56,055       83,361  
Deferred revenue   221,180       203,653  
Operating lease liabilities   5,003       4,338  
Total current liabilities   318,113       318,519  
Operating lease liabilities, non-current   10,133       10,025  
Deferred revenue   234       277  
Other liabilities   10,723       10,819  
Total liabilities   339,203       339,640  
Commitments and contingencies      
Stockholders’ equity:      
Preferred stock, $0.001 par value; 100,000 shares authorized at June 30, 2026 and December 31, 2025, none issued or outstanding at June 30, 2026 and December 31, 2025   —       —  
Common stock, $0.001 par value; 1,000,000 shares authorized; 167,451 shares and 177,624 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively   169       179  
Additional paid-in capital   1,344,473       1,305,936  
Accumulated deficit   (1,217,855 )     (1,134,414 )
Accumulated other comprehensive income   369       181  
Total stockholders’ equity   127,156       171,882  
Total liabilities and stockholders’ equity $ 466,359     $ 511,522  

LegalZoom.com, Inc.

Unaudited Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)
         
    Three Months Ended June 30,   Six Months Ended June 30,
      2026       2025       2026       2025  
Revenue   $ 205,289     $ 192,509     $ 412,070     $ 375,619  
Cost of revenue     65,359       67,398       139,887       133,958  
Gross profit     139,930       125,111       272,183       241,661  
Operating expenses:                
Sales and marketing     78,849       69,580       157,517       130,958  
Technology and development     20,047       21,635       39,652       42,957  
General and administrative     30,384       36,996       61,600       76,217  
Gain on sale of assets held for sale     —       —       —       (14,337 )
Total operating expenses     129,280       128,211       258,769       235,795  
Income (loss) from operations     10,650       (3,100 )     13,414       5,866  
Interest expense     (126 )     (165 )     (802 )     (347 )
Interest income     1,627       2,069       3,275       3,552  
Other (expense) income, net     (3 )     652       78       999  
Income (loss) before income taxes     12,148       (544 )     15,965       10,070  
Provision for (benefit from) income taxes     6,965       (278 )     9,678       5,209  
Net income (loss)   $ 5,183     $ (266 )   $ 6,287     $ 4,861  
Net income (loss) attributable to common stockholders—basic and diluted                
Net income (loss) per share — basic:   $ 0.03     $ —     $ 0.04     $ 0.03  
Net income (loss) per share — diluted:   $ 0.03     $ —     $ 0.04     $ 0.03  
Weighted-average shares used to compute net income (loss) per share:                
Weighted-average shares used to compute net income (loss) per share — basic:     170,189       180,880       175,568       178,837  
Weighted-average shares used to compute net income (loss) per share — diluted:     171,641       180,880       177,627       182,694  

LegalZoom.com, Inc.

Unaudited Condensed Consolidated Statements of Cash Flows

(In thousands)
   
  Six Months Ended June 30,
    2026       2025  
Cash flows from operating activities      
Net income $ 6,287     $ 4,861  
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization   22,411       21,745  
Amortization of debt issuance costs   95       112  
Amortization of right-of-use assets   1,887       1,484  
Stock-based compensation   44,910       60,394  
Gain on sale of assets held for sale   —       (14,337 )
Gain on sale of available-for-sale debt security   —       (648 )
Loss on disposal of property and equipment   15       97  
Deferred income taxes   7,825       (5,725 )
Change in fair value of other equity security   —       (302 )
Unrealized foreign exchange loss   248       31  
Changes in operating assets and liabilities, net of effects of business combination:      
Accounts receivable   828       (14,254 )
Prepaid expenses and other current assets   (6,979 )     3,726  
Other assets   522       83  
Accounts payable   8,698       4,454  
Accrued expenses and other liabilities   (15,566 )     (697 )
Operating lease liabilities   (1,852 )     (1,056 )
Income tax payable   15       239  
Deferred revenue   17,485       29,635  
Net cash provided by operating activities   86,829       89,842  
Cash flows from investing activities      
Acquisition, net of cash acquired   —       (48,468 )
Purchase of property and equipment   (12,165 )     (16,908 )
Proceeds from sale of available-for-sale debt security   —       1,507  
Proceeds from sale of assets held for sale   —       37,051  
Net cash used in investing activities   (12,165 )     (26,818 )
Cash flows from financing activities      
Repayment of capital lease obligations   —       (2 )
Payment of deferred consideration from business acquisition   (12,514 )     —  
Share repurchase costs (excise tax)   —       (1,264 )
Repurchase of common stock   (89,010 )     (20,419 )
Shares surrendered for settlement of minimum statutory tax withholding   (9,459 )     (11,172 )
Proceeds from issuance of stock under employee stock plans   518       44,657  
Net cash (used in) provided by financing activities   (110,465 )     11,800  
Effect of exchange rate changes on cash and cash equivalents   (72 )     147  
Net (decrease) increase in cash and cash equivalents   (35,873 )     74,971  
Cash and cash equivalents, at beginning of the period   203,100       142,064  
Cash and cash equivalents, at end of the period $ 167,227     $ 217,035  
               


Adjusted EBITDA and Adjusted EBITDA Margin

The following table presents a reconciliation of net income (loss) to Adjusted EBITDA for each of the periods indicated (unaudited):

    Three Months Ended June 30,   Six Months Ended June 30,
      2026       2025       2026       2025  
    (in thousands, except percentages)
Reconciliation of net income (loss) to Adjusted EBITDA                
Net income (loss)   $ 5,183     $ (266 )   $ 6,287     $ 4,861  
Interest expense     126       165       802       347  
Interest income     (1,627 )     (2,069 )     (3,275 )     (3,552 )
Provision for (benefit from) income taxes     6,965       (278 )     9,678       5,209  
Depreciation and amortization     11,274       11,339       22,411       21,745  
Other expense (income), net     3       (652 )     (78 )     (999 )
Stock-based compensation     23,596       30,638       44,910       60,394  
Transaction-related expenses(1)     —       —       604       1,543  
Gain on sale of assets held for sale     —       —       —       (14,337 )
Restructuring costs(2)     378       88       1,021       766  
Adjusted EBITDA   $ 45,898     $ 38,965     $ 82,360     $ 75,977  
Net income (loss) margin     3 %     — %     2 %     1 %
Adjusted EBITDA margin     22 %     20 %     20 %     20 %

(1) For 2025, transaction-related expenses are primarily related to our acquisition of Formation Nation. For 2026, transaction-related expenses are related to the evaluation and pursuit of strategic transactions.
(2) For 2026 and 2025, restructuring costs are related to the reduction of our global headcount.
   


Non-GAAP Net Income, Non-GAAP Net Income (Loss) Margin and diluted Non-GAAP Net Income Per Share

The following table presents a reconciliation of net income (loss) to Non-GAAP net income for each of the periods indicated (unaudited):

    Three Months Ended June 30,   Six Months Ended June 30,
      2026       2025       2026       2025  
    (in thousands, except per share amounts)

Reconciliation of net income to Non-GAAP net income
 		               
Net income (loss)   $ 5,183     $ (266 )   $ 6,287     $ 4,861  
Amortization of acquired intangible assets     1,610       2,381       3,220       4,028  
Stock-based compensation     23,596       30,638       44,910       60,394  
Transaction-related expenses(1)     —       —       604       1,543  
Restructuring costs(2)     378       88       1,021       766  
Gain on sale of assets held for sale     —       —       —       (14,337 )
Income tax effects(3)     (3,323 )     (4,512 )     (6,527 )     (5,104 )
Non-GAAP net income     27,444       28,329       49,515       52,151  
Net income (loss) margin     3 %     — %     2 %     1 %
Non-GAAP net income (loss) margin     13 %     15 %     12 %     14 %
Net income (loss) per share — basic   $ 0.03     $ —     $ 0.04     $ 0.03  
Net income (loss) per share — diluted   $ 0.03     $ —     $ 0.04     $ 0.03  
Non-GAAP net income per share — basic   $ 0.16     $ 0.16     $ 0.28     $ 0.29  
Non-GAAP net income per share — diluted   $ 0.16     $ 0.15     $ 0.28     $ 0.29  
Weighted-average shares used to compute net income (loss) per share — basic     170,189       180,880       175,568       178,837  
Weighted-average shares used to compute net income (loss) per share — diluted     171,641       180,880       177,627       182,694  
Weighted-average shares used to compute Non-GAAP net income per share — basic     170,189       180,880       175,568       178,837  
Weighted-average shares used to compute Non-GAAP net income per share — diluted     171,641       184,482       177,627       182,694  

(1) For 2025, transaction-related expenses are primarily related to our acquisition of Formation Nation. For 2026, transaction-related expenses are related to the evaluation and pursuit of strategic transactions.
(2) For 2026 and 2025, restructuring costs are related to the reduction of our global headcount.
(3) The estimated income tax effect of the non-GAAP pre-tax adjustments is determined by applying the statutory rate of the originating jurisdiction, if applicable.
   

The following table shows the computation of basic and diluted Non-GAAP net income per share (unaudited):

    Three Months Ended June 30,   Six Months Ended June 30,
    2026
   2025
   2026
   2025
    (in thousands, except per share amounts)
Non-GAAP net income and Non-GAAP net income per share:                
Non-GAAP net income   $ 27,444   $ 28,329   $ 49,515   $ 52,151
Reconciliation of denominator for net income per share to Non-GAAP net income per share:                
Weighted-average shares used to compute net income (loss) per share — basic:     170,189     180,880     175,568     178,837
Effect of potentially dilutive securities:                
Options to purchase common stock     31     58     34     59
RSUs and PSUs     1,410     3,526     2,019     3,782
Employee stock purchase plan     11     18     6     16
Weighted-average common stock used in computing Non-GAAP net income per share — diluted     171,641     184,482     177,627     182,694
Non-GAAP net income per share — basic   $ 0.16   $ 0.16   $ 0.28   $ 0.29
Non-GAAP net income per share — diluted   $ 0.16   $ 0.15   $ 0.28   $ 0.29
                         


Free Cash Flow

The following table presents a reconciliation of net cash provided by operating activities to free cash flow (unaudited):

    Three Months Ended June 30,   Six Months Ended June 30,
      2026       2025       2026       2025  
    (in thousands)
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow                
Net cash provided by operating activities     39,547       39,139       86,829       89,842  
Purchase of property and equipment     (5,857 )     (7,530 )     (12,165 )     (16,908 )
Free cash flow   $ 33,690     $ 31,609     $ 74,664     $ 72,934  



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Blend to Present at the Canaccord Genuity 46th Annual Growth Conference

Blend to Present at the Canaccord Genuity 46th Annual Growth Conference

SAN FRANCISCO–(BUSINESS WIRE)–
Blend Labs Inc. (NYSE: BLND), a leading digital origination platform for banks, credit unions, and mortgage lenders, today announced that Nima Ghamsari, Co-Founder and Head of Blend, will participate in a fireside chat at the Canaccord Genuity 46th Annual Growth Conference on Wednesday, August 12, 2026 at 1 p.m. ET.

A live webcast and replay will be available under the “Events & Presentations” section of the company’s investor relations website at investor.blend.com.

About Blend

Blend Labs, Inc. (NYSE: BLND) is a leading origination platform for digital banking solutions. Financial providers—from large banks, fintechs, and credit unions to community and independent mortgage banks—use Blend’s platform to transform banking experiences for their customers. To learn more, visit blend.com.

Investor Contact:

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Banking Fintech Professional Services Finance

MEDIA:

Logo
Logo
Posted on

Biodesix Announces Second Quarter 2026 Results and Highlights

Delivered $26.9 million in revenue, representing 34% growth in Q2 2026;

Achieved 82% gross margin in Q2 2026;

Maintained FY 2026 Revenue Guidance of $108-114 million, mid-point reflects 25% growth;

Conference Call and Webcast Today at 4:30 p.m. ET

LOUISVILLE, Colo., Aug. 05, 2026 (GLOBE NEWSWIRE) — Biodesix, Inc. (Nasdaq: BDSX), a leading diagnostic solutions company, today announced its financial and operating results for the second quarter ended June 30, 2026.

“Biodesix delivered another strong quarter, highlighted by 34% revenue growth, 42% growth in Diagnostic Testing revenue, and gross margins, which increased to 82%,” said Scott Hutton, Chief Executive Officer. “Our performance reflects continued adoption of our blood-based lung diagnostics, expanding reimbursement coverage, and improving sales force productivity. Diagnostic testing volumes grew 38% year-over-year while operating expenses excluding direct costs increased only 7%, demonstrating meaningful operating leverage and a 56% improvement in Adjusted EBITDA.”

Hutton continued, “In delivering against our mission to conquer lung cancer and other diseases, we believe our combination of clinical evidence, reimbursement strength, commercial execution, and disciplined expense management positions Biodesix to continue delivering sustainable growth while advancing toward profitability.”

Business and Financial Highlights for the Second Quarter 2026

  • Diagnostic Testing revenue was $25.4 million in the second quarter, representing 42% growth, driven by a 38% increase in test volumes to 20,900 and higher average revenue per test year-over-year. The improvement in average revenue per test was primarily attributable to expanded payer coverage and continued improvements to revenue cycle management;
  • Development Services revenue of $1.5 million in the second quarter 2026, as compared to $2.1 million in the prior year period reflecting timing of project completion and revenue recognition. The Development Services pipeline is strong and supports expectations for growth over the remainder of 2026;
  • Total revenue of $26.9 million in the second quarter 2026, an increase of 34% over the respective prior year comparable period;
  • Gross margin was 82% in the second quarter, a 200-basis point improvement over the respective prior year comparable period. The Company continues to deliver strong gross margins driven by higher Diagnostic Testing volumes, improved average revenue per test, and continued optimization of laboratory workflows, resulting in a lower cost per test;
  • Operating expenses (excluding direct costs and expenses) of $27.4 million for the second quarter 2026, an increase of 7% over the respective prior year comparable period. The Company expects continued operating leverage as our expanded sales team gains experience, increases productivity, and delivers sustained performance;
    • Includes non-cash stock compensation expense of $0.8 million during the second quarter 2026, a decrease of 21% versus the respective prior year comparable period;
  • Net loss of $7.3 million for the second quarter 2026, an improvement of 37% over the respective prior year comparable period;
  • Adjusted EBITDA was a loss of $3.2 million in the second quarter 2026, a 56% improvement over the respective prior year comparable period;
  • Cash and cash equivalents of $30.0 million, an increase of 17% over the period ending March 31, 2026. Change in cash included $6.5 million of net proceeds from our at-the-market program. We believe current cash, expected growth in revenue, and ongoing operational leverage provide sufficient liquidity to execute our growth strategy.

2026 Financial Outlook

For full year 2026, the Company expects total revenue of $108–114 million, with the midpoint representing approximately 25% growth over 2025. Biodesix expects continued progress toward achieving and maintaining Adjusted EBITDA profitability, driven by increasing sales productivity, expanded clinical evidence supporting the Nodify Lung tests, growth in the Development Services pipeline, and demonstrated operating leverage.

Metric FY 2026 Guidance
Total Revenue $108-114M (mid-point is 25%
growth)
Gross Margin Maintain ~80%
Adj. EBITDA Continued improvement on path
to profitability



Conference call and webcast information

Listeners can register for the webcast via this link. Analysts who wish to participate in the question-and-answer session should use this link. A replay of the webcast will be available via the Company’s investor website approximately two hours after the call’s conclusion. Participants are advised to join 15 minutes prior to the start time.

For a full list of Biodesix press releases and webinars, please visit biodesix.com.

About Biodesix

Biodesix is a leading diagnostic solutions company, driven to improve clinical care and outcomes for patients. Biodesix Diagnostic Tests, including the Nodify Lung® Nodule Risk Assessment test and the IQLung® Cancer Treatment Guidance test, support clinical decisions to expedite personalized care and improve outcomes for patients with lung disease. Biodesix Development Services enable the world’s leading biopharmaceutical, life sciences, and research institutions with scientific, technological, and operational capabilities that fuel the development of diagnostic tests, tools, and therapeutics. For more information, visit biodesix.com.

Trademarks: Biodesix, Biodesix Logo, Nodify Lung, and IQLung are trademarks or registered trademarks of Biodesix, Inc.

Use of Non-GAAP Financial Measure

Biodesix reported results are presented in accordance with generally accepted accounting principles in the United States (GAAP).

Biodesix also presents Adjusted EBITDA, a non-GAAP financial measure, in this press release. Adjusted EBITDA is a key performance measure that our management uses to assess our financial performance, for internal planning and forecasting purposes, and as an additional measure of our performance for the purposes of business decision-making, including managing expenditures. We believe that this non-GAAP financial measure is useful to investors and other interested parties in analyzing our financial performance because it provides a comparable overview of our operations across historical periods, and helps our management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of Net loss or Loss from operations. In addition, we believe that providing Adjusted EBITDA, together with a reconciliation of Net loss to Adjusted EBITDA, helps investors make comparisons between our Company and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation. Our management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items and may not be directly comparable to similarly titled metrics used by other companies.

We calculate Adjusted EBITDA as Net loss adjusted to exclude interest, income tax expense, if any, depreciation and amortization, share-based compensation expense, loss on debt extinguishments, net, change in fair value of warrant liabilities, net, other income, net, and other non-recurring items. Non-recurring items are excluded as they are not representative of our underlying operating performance. Adjusted EBITDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for Loss from operations, Net loss, and other GAAP measures.

Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “plan,” “expect,” “predict,” “potential,” “opportunity,” “goals,” or “should,” and similar expressions are intended to identify forward-looking statements. Such statements are based on management’s current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors. Biodesix has based these forward-looking statements largely on its current expectations and projections about future events and trends. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions. Forward-looking statements may include information concerning possible or assumed future results of operations, including descriptions of our revenues, profitability, outlook, and overall business strategy, the timing and assumptions regarding collection of revenues on projections, availability of funds and future capital, the anticipated impact and benefits of new clinical data, reimbursement coverage and research partnerships, the impact of enhanced U.S. tariffs, import/export restrictions or other trade barriers on the company and its operations and financial performance. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Other factors that could cause actual results to differ materially from those contemplated in this press release can be found in the Risk Factors section of our most recent Annual Report on Form 10-K, filed February 26, 2026, or subsequent Quarterly Reports on Form 10-Q during 2026, as applicable. Biodesix undertakes no obligation to revise or publicly release the results of any revision to such forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. All forward-looking statements are qualified in their entirety by this cautionary statement. 

Contacts:

Media:

Natalie St. Denis
[email protected]
(720) 925-9285

Investors:

Chris Brinzey
[email protected]
(339) 970-2843

Biodesix, Inc.
Condensed Balance Sheets (unaudited)
(in thousands, except share data)
    June 30, 2026     December 31, 2025  
Assets  
Current assets            
Cash and cash equivalents   $ 29,996     $ 18,987  
Accounts receivable, net of allowance for credit losses of $117 and $62     9,113       9,036  
Other current assets     4,456       4,495  
Total current assets     43,565       32,518  
Non-current assets            
Property and equipment, net     23,803       24,817  
Intangible assets, net     2,979       3,883  
Operating lease right-of-use assets     3,542       2,997  
Goodwill     15,031       15,031  
Other long-term assets     6,406       8,230  
Total non-current assets     51,761       54,958  
Total assets   $ 95,326     $ 87,476  
             
Liabilities and Stockholders’ Equity (Deficit)  
Current liabilities            
Accounts payable   $ 2,160     $ 3,080  
Accrued liabilities     10,411       11,033  
Deferred revenue     205       961  
Current portion of operating lease liabilities     1,609       1,364  
Current portion of notes payable     —       6  
Other current liabilities     906       992  
Total current liabilities     15,291       17,436  
Non-current liabilities            
Long-term notes payable, net of current portion     46,817       47,445  
Long-term operating lease liabilities     23,370       24,039  
Other long-term liabilities     704       1,021  
Total non-current liabilities     70,891       72,505  
Total liabilities     86,182       89,941  
Commitments and contingencies            
Stockholders’ equity (deficit)            
Preferred stock, $0.001 par value, 5,000,000 authorized;
0 (2026 and 2025) issued and outstanding		     —       —  
Common stock, $0.001 par value, 200,000,000 authorized;
10,549,890 (2026) and 8,253,053 (2025) shares issued and outstanding		     11       8  
Additional paid-in capital     521,961       495,289  
Accumulated deficit     (512,828 )     (497,762 )
Total stockholders’ equity (deficit)     9,144       (2,465 )
Total liabilities and stockholders’ equity (deficit)   $ 95,326     $ 87,476  
                 

Biodesix, Inc.

Condensed Statements of Operations (unaudited)

(in thousands, except per share data)
    Three Months Ended June 30,     Six Months Ended June 30,  
    2026     2025     2026     2025  
Revenues                        
Diagnostic Tests   $ 25,349     $ 17,898     $ 47,640     $ 34,214  
Development Services     1,512       2,120       4,776       3,762  
Total revenues     26,861       20,018       52,416       37,976  
Direct costs and expenses     4,820       4,031       9,025       7,734  
Research and development     3,135       3,269       6,420       6,139  
Sales, marketing, general and administrative     24,282       22,411       48,543       42,859  
Impairment loss on intangible assets     12       26       17       99  
Total operating expenses     32,249       29,737       64,005       56,831  
Loss from operations     (5,388 )     (9,719 )     (11,589 )     (18,855 )
Other (expense) income:                        
Interest expense     (1,982 )     (1,898 )     (3,959 )     (3,583 )
Change in fair value of warrant liability, net     —       98       —       (280 )
Other income, net     97       51       482       149  
Total other expense     (1,885 )     (1,749 )     (3,477 )     (3,714 )
                         
Net loss   $ (7,273 )   $ (11,468 )   $ (15,066 )   $ (22,569 )
Net loss per share, basic and diluted   $ (0.71 )   $ (1.56 )   $ (1.51 )   $ (3.08 )
Weighted-average shares outstanding, basic and diluted     10,296       7,333       9,977       7,316  
                                 

Biodesix, Inc.
Reconciliation of Net Loss to Adjusted EBITDA (unaudited)
(in thousands)
  Three Months Ended June 30,     Six Months Ended June 30,  
  2026     2025     2026     2025  
Net loss $ (7,273 )   $ (11,468 )   $ (15,066 )   $ (22,569 )
Interest expense   1,982       1,898       3,959       3,583  
Depreciation and amortization   1,387       1,436       2,783       2,876  
Share-based compensation expense   820       1,039       1,935       2,011  
Change in fair value of warrant liability, net   —       (98 )     —       280  
Other (income) expense, net   (97 )     (20 )     (846 )     410  
Adjusted EBITDA $ (3,181 )   $ (7,213 )   $ (7,235 )   $ (13,409 )



Posted on

Expedia Group Reports Second Quarter 2026 Results

Expedia Group Reports Second Quarter 2026 Results

Exceeded guidance with 12% Gross Bookings and 14% revenue growth y/y

Expanded Adj. EBITDA margins y/y

Increases full year guidance

SEATTLE–(BUSINESS WIRE)–
Expedia Group, Inc. (NASDAQ: EXPE) announced financial results today for the second quarter ended June 30, 2026.

Second Quarter Highlights (All comparisons year-over-year)

  • Booked Room Nights grew 6%.

  • Total Gross Bookings grew 12%, while B2B Gross Bookings grew 21% and B2C Gross Bookings grew 8%.

  • Lodging Gross Bookings grew 11%.

  • Revenue grew 14%, driven by B2B, which grew 23%.

  • GAAP net income increased 166% while Adjusted net income grew 29%. Adjusted EBITDA increased 23% with 196 basis points of margin expansion.

  • Diluted GAAP earnings per share increased 188% while Adjusted earnings per share increased 36%.

  • Repurchased approximately 880 thousand shares for $200 million in the second quarter.

  • Paid quarterly dividend of $0.48 per share on June 18, 2026 and declared quarterly dividend of $0.48 per share on August 5, 2026.

“We exceeded the high end of our guidance in the quarter, driven by growth in our consumer brands, sustained B2B momentum, and disciplined execution,” said Ariane Gorin, CEO of Expedia Group. “We continued to strengthen our marketplace through more personalized consumer product experiences and expanded supply across our business, while leveraging AI as a force multiplier to innovate faster and operate more efficiently. Our results reinforce the strength of our strategy and the differentiation of our platform for travelers, partners, and shareholders.”

Financial Summary & Operating Metrics (In millions except per share amounts)
 

 

Expedia Group, Inc.

Metric

Q2 2026

Q2 2025

Δ Y/Y

Booked Room Nights

111.5

105.5

6%

Gross Bookings

$33,928

$30,409

12%

Revenue

$4,315

$3,786

14%

Operating income

$800

$485

65%

Net income attributable to Expedia Group, Inc.

$878

$330

166%

Diluted Earnings Per Share

$7.16

$2.48

188%

Adjusted EBITDA*

$1,119

$908

23%

Adjusted EPS*

$5.76

$4.24

36%

Net cash provided by operating activities

$1,478

$1,121

32%

Free cash flow*

$1,279

$921

39%
* A reconciliation of non-GAAP financial measures to the most comparable GAAP measures is provided at the end of this release.

Business Outlook
 
Metric

Q3 2026

Gross Bookings

$32.2 – $32.8B

+5 – 7%

Revenue

$4.65 – $4.75B

+5 – 8%

Adjusted EBITDA**

$1.51 – $1.56B
Metric

Full Year 2026

Previous Guidance

Current Guidance

Gross Bookings

$127 – $129B

+6 – 8%

$129.5 – $130.8B

+8 – 9%

Revenue

$15.6 – $16.0B

+6 – 9%

$16.05 – $16.22B

+9 – 10%

Adjusted EBITDA margin expansion**

+1 – 1.25pts

+1.5 – 1.75pts
** A reconciliation for the Adjusted EBITDA and Adjusted EBITDA margin expansion forecast is not provided because we cannot, without unreasonable effort, predict certain items, including but not limited to, foreign exchange rate gains or losses and minority investment gains or losses, and are unable to address the probable significance of the unavailable information.

Quarterly Dividend

Expedia Group’s Executive Committee, acting on behalf of its Board of Directors, has declared a quarterly cash dividend of $0.48 per share of outstanding common stock, payable on September 17, 2026 to stockholders of record as of the close of business on August 27, 2026.

Conference Call

Expedia Group will webcast a conference call to discuss second quarter 2026 financial results and certain forward-looking information on Wednesday, August 5, 2026 at 1:30 p.m. Pacific Time (PT). The webcast will be open to the public and available via ir.expediagroup.com. Expedia Group expects to maintain access to the webcast on the IR website for approximately twelve months subsequent to the initial broadcast. An earnings presentation containing financial and other statistical information supporting the prepared remarks on the call, together with reconciliations of the non-GAAP financial measures used, will be available on the “Investors” section of Expedia Group’s website at ir.expediagroup.com beginning at approximately 1:00 p.m. PT on the same date and will remain available following the call.

About Expedia Group

Expedia Group, Inc. is the global travel marketplace with one purpose: to help travelers explore the world, one journey at a time. Expedia Group™ connects travelers, partners, and advertisers through its trusted brands, leading technology, and rich first-party data, delivering predictive, personalized experiences that shape the future of travel.

Expedia Group’s ecosystem includes three flagship consumer brands – Expedia®, Hotels.com®, and Vrbo® – the largest B2B travel business, and a premier advertising network. Guided by an experienced and passionate global team, Expedia Group helps millions of travelers in more than 70 countries explore the world with confidence and ease.

© 2026 Expedia, Inc., an Expedia Group company. All rights reserved. Expedia Group and the Expedia Group logo are trademarks of Expedia, Inc. CST: 2029030-50.

Expedia Group, Inc.

Trended Metrics

(All figures in millions, except ADR booked)

The metrics below are intended to supplement the financial statements in this release and in our filings with the SEC, and do not include adjustments for one-time items, acquisitions, foreign exchange or other adjustments. The definition or methodology of any of our supplemental metrics are subject to change, and such changes could be material. We may also discontinue certain supplemental metrics as our business evolves over time. In the event of any discrepancy between any supplemental metric and our historical financial statements, you should rely on the information included in the financial statements filed with or furnished to the SEC.

 

 

 

2025

 

 

 

2026

 

 

 

Y/Y

 

 

 

 

 

Q1

 

Q2

 

Q3

 

Q4

 

 

 

Q1

 

Q2

 

 

 

Growth

 

 

Operating metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Booked Room Nights

 

 

107.7

 

105.5

 

108.2

 

94.0

 

 

 

113.9

 

111.5

 

 

 

6%

 

 

Average Daily Rate (“ADR”) Booked

 

 

$213.9

 

$209.3

 

$209.8

 

$207.0

 

 

 

$228.1

 

$220.6

 

 

 

5%

 

 

Booked Air Tickets

 

 

14.8

 

15.0

 

14.4

 

12.8

 

 

 

15.7

 

14.2

 

 

 

(5)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Bookings by business model

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agency

 

 

$13,239

 

$12,376

 

$11,875

 

$10,517

 

 

 

$14,357

 

$13,317

 

 

 

8%

 

 

Merchant

 

 

18,212

 

18,033

 

18,852

 

16,486

 

 

 

21,173

 

20,611

 

 

 

14%

 

 

Total

 

 

$31,451

 

$30,409

 

$30,727

 

$27,003

 

 

 

$35,530

 

$33,928

 

 

 

12%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Bookings by product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lodging

 

 

$23,032

 

$22,073

 

$22,705

 

$19,455

 

 

 

$25,977

 

$24,603

 

 

 

11%

 

 

Non-lodging

 

 

8,419

 

8,336

 

8,022

 

7,548

 

 

 

9,553

 

9,325

 

 

 

12%

 

 

Total

 

 

$31,451

 

$30,409

 

$30,727

 

$27,003

 

 

 

$35,530

 

$33,928

 

 

 

12%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lodging

 

 

$2,289

 

$3,040

 

$3,604

 

$2,819

 

 

 

$2,610

 

$3,429

 

 

 

13%

 

 

Air

 

 

107

 

105

 

101

 

94

 

 

 

107

 

91

 

 

 

(13)%

 

 

Advertising & Media – EG(1)

 

 

174

 

182

 

194

 

208

 

 

 

197

 

206

 

 

 

13%

 

 

Advertising & Media – trivago(1)

 

 

85

 

98

 

137

 

97

 

 

 

125

 

145

 

 

 

48%

 

 

Other(2)

 

 

333

 

361

 

376

 

329

 

 

 

387

 

444

 

 

 

23%

 

 

Total

 

 

$2,988

 

$3,786

 

$4,412

 

$3,547

 

 

 

$3,426

 

$4,315

 

 

 

14%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by geography

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. points of sale

 

 

$1,831

 

$2,303

 

$2,537

 

$2,039

 

 

 

$1,990

 

$2,570

 

 

 

12%

 

 

Non-U.S. points of sale

 

 

1,157

 

1,483

 

1,875

 

1,508

 

 

 

1,436

 

1,745

 

 

 

18%

 

 

Total

 

 

$2,988

 

$3,786

 

$4,412

 

$3,547

 

 

 

$3,426

 

$4,315

 

 

 

14%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(1) Our Advertising & Media business consists of Expedia Group (“EG”) Advertising, which is responsible for generating advertising revenue on our global online travel brands, and third-party revenue for trivago, a leading hotel metasearch site.
(2) Other revenue primarily includes insurance, car rental, destination services and cruise revenue.
Notes:
  • All trivago revenue is classified as Non-U.S. point of sale. Some numbers may not add due to rounding.

  • All percentages throughout this release are calculated on precise, unrounded numbers.

Expedia Group, Inc. Segment P&L

(All figures in millions)
 

 

 

 

 

 

 

 

 

 

y/y growth

By Segment

 

Q1-25

Q2-25

Q3-25

Q4-25

Q1-26

Q2-26

 

Q2-26

 

 

 

 

 

 

 

 

 

 

Gross Bookings

 

$31,451

$30,409

$30,727

$27,003

$35,530

$33,928

 

12%

B2C

 

$22,615

$21,565

$21,343

$18,344

$24,784

$23,186

 

8%

B2B

 

$8,836

$8,844

$9,384

$8,659

$10,746

$10,742

 

21%

 

 

 

 

 

 

 

 

 

 

Revenue

 

$2,988

$3,786

$4,412

$3,547

$3,426

$4,315

 

14%

B2C

 

$1,956

$2,479

$2,883

$2,156

$2,118

$2,677

 

8%

B2B

 

$947

$1,209

$1,392

$1,294

$1,183

$1,493

 

23%

Other (1)

 

$85

$98

$137

$97

$125

$145

 

48%

 

 

 

 

 

 

 

 

 

 

Revenue margin (2)

 

9.5%

12.4%

14.4%

13.1%

9.6%

12.7%

 

27 bps

 

 

 

 

 

 

 

 

 

 

Adjusted cost of revenue (3)

 

$354

$373

$373

$342

$373

$399

 

7%

% Revenue

 

11.9%

9.8%

8.4%

9.6%

10.9%

9.2%

 

(61) bps

B2C

 

$312

$340

$347

$307

$324

$346

 

2%

% B2C revenue

 

16.0%

13.7%

12.0%

14.2%

15.3%

12.9%

 

(79) bps

B2B

 

$38

$28

$18

$27

$39

$39

 

39%

% B2B revenue

 

4.0%

2.3%

1.3%

2.0%

3.3%

2.6%

 

29 bps

Other (1)

 

$4

$5

$8

$8

$10

$14

 

184%

 

 

 

 

 

 

 

 

 

 

Selling and marketing – direct

 

$1,757

$1,920

$1,976

$1,696

$1,856

$2,119

 

10%

% Gross Bookings

 

5.6%

6.3%

6.4%

6.3%

5.2%

6.2%

 

(7) bps

B2C

 

$1,115

$1,092

$1,032

$847

$1,035

$1,101

 

1%

% B2C Gross Bookings

 

4.9%

5.1%

4.8%

4.6%

4.2%

4.7%

 

(31) bps

B2B

 

$577

$752

$855

$798

$726

$915

 

22%

Other (1)

 

$65

$76

$89

$51

$95

$103

 

35%

 

 

 

 

 

 

 

 

 

 

Other segment items (4)

 

$581

$585

$614

$661

$655

$678

 

16%

% Revenue

 

19.4%

15.5%

13.9%

18.6%

19.1%

15.7%

 

26 bps

B2C

 

$312

$319

$330

$323

$333

$341

 

7%

% B2C revenue

 

16.0%

12.8%

11.4%

15.0%

15.7%

12.8%

 

(9) bps

B2B

 

$116

$98

$117

$161

$149

$170

 

71%

% B2B revenue

 

12.3%

8.2%

8.4%

12.4%

12.6%

11.4%

 

318 bps

Other (1)

 

$153

$168

$167

$177

$173

$167

 

—%

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (3)

 

$296

$908

$1,449

$848

$542

$1,119

 

23%

% Margin

 

9.9%

24.0%

32.9%

23.9%

15.8%

25.9%

 

196 bps

B2C

 

$217

$728

$1,174

$679

$426

$889

 

22%

% Margin

 

11.1%

29.4%

40.7%

31.5%

20.1%

33.2%

 

380 bps

B2B

 

$216

$331

$402

$308

$269

$369

 

12%

% Margin

 

22.8%

27.3%

28.9%

23.9%

22.7%

24.8%

 

(258) bps

Other (1)

 

$(137)

$(151)

$(127)

$(139)

$(153)

$(139)

 

(8)%
(1) Other is comprised of trivago, corporate and intercompany eliminations.
(2) Revenue margin is defined as revenue as a percentage of Gross Bookings.
(3) See the sections below titled “Non-GAAP Measures” and “Tabular Reconciliations for Non-GAAP Measures” for additional information, including reconciliations to the most directly comparable GAAP measures.
(4) Other segment items include total adjusted overhead expenses (see section below titled “Tabular Reconciliations for Non-GAAP Measures – Adjusted Expenses”), as well as the realized foreign currency gains or losses related to the forward contracts hedging a component of our net merchant lodging revenue for our B2C and B2B segments.
Notes: Some numbers may not add due to rounding. All percentages throughout this release are calculated on precise, unrounded numbers.
 

EXPEDIA GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except share and per share data)

(Unaudited)
 

 

Three months ended

June 30,

 

Six months ended

June 30,

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

 

 

 

 

 

 

 

Revenue

$

4,315

 

 

$

3,786

 

 

$

7,741

 

 

$

6,774

 

Costs and expenses:

 

 

 

 

 

 

 

Cost of revenue (exclusive of depreciation and amortization shown separately below) (1)

 

403

 

 

 

377

 

 

 

780

 

 

 

734

 

Selling and marketing – direct

 

2,119

 

 

 

1,920

 

 

 

3,975

 

 

 

3,677

 

Selling and marketing – indirect (1)

 

217

 

 

 

213

 

 

 

419

 

 

 

412

 

Technology and content (1)

 

325

 

 

 

325

 

 

 

649

 

 

 

645

 

General and administrative (1)

 

204

 

 

 

197

 

 

 

400

 

 

 

377

 

Depreciation and amortization

 

228

 

 

 

223

 

 

 

456

 

 

 

442

 

Legal reserves, occupancy tax and other

 

6

 

 

 

2

 

 

 

(58

)

 

 

2

 

Restructuring and related reorganization charges (1)

 

13

 

 

 

44

 

 

 

69

 

 

 

70

 

Operating income

 

800

 

 

 

485

 

 

 

1,051

 

 

 

415

 

Other income (expense):

 

 

 

 

 

 

 

Interest income

 

73

 

 

 

74

 

 

 

133

 

 

 

128

 

Interest expense

 

(61

)

 

 

(58

)

 

 

(172

)

 

 

(116

)

Other, net

 

215

 

 

 

(78

)

 

 

40

 

 

 

(221

)

Total other income (expense), net

 

227

 

 

 

(62

)

 

 

1

 

 

 

(209

)

Income before income taxes

 

1,027

 

 

 

423

 

 

 

1,052

 

 

 

206

 

Provision for income taxes

 

(152

)

 

 

(101

)

 

 

(189

)

 

 

(81

)

Net income

 

875

 

 

 

322

 

 

 

863

 

 

 

125

 

Net loss attributable to non-controlling interests

 

3

 

 

 

8

 

 

 

9

 

 

 

5

 

Net income attributable to Expedia Group, Inc.

$

878

 

 

$

330

 

 

$

872

 

 

$

130

 

 

 

 

 

 

 

 

 

Earnings per share attributable to Expedia Group, Inc. available to common stockholders:

 

 

 

 

 

 

 

Basic

$

7.30

 

 

$

2.61

 

 

$

7.21

 

 

$

1.02

 

Diluted

 

7.16

 

 

 

2.48

 

 

 

7.05

 

 

 

0.96

 

Shares used in computing earnings per share (000’s):

 

 

 

 

 

 

 

Basic

 

120,223

 

 

 

126,453

 

 

 

121,027

 

 

 

127,541

 

Diluted

 

122,552

 

 

 

132,809

 

 

 

123,763

 

 

 

134,296

 

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation as follows:

 

 

 

 

 

 

 

Cost of revenue

$

4

 

 

$

4

 

 

$

8

 

 

$

7

 

Selling and marketing

 

24

 

 

 

23

 

 

 

42

 

 

 

43

 

Technology and content

 

40

 

 

 

39

 

 

 

78

 

 

 

77

 

General and administrative

 

44

 

 

 

36

 

 

 

83

 

 

 

73

 

Restructuring and related reorganization charges

 

2

 

 

 

3

 

 

 

6

 

 

 

3

 
 

EXPEDIA GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(In millions, except number of shares which are reflected in thousands and par value)
 

 

June 30,

2026

 

December 31,

2025

 

(Unaudited)

 

 

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

6,682

 

 

$

5,413

 

Restricted cash and cash equivalents

 

2,402

 

 

 

1,563

 

Short-term investments

 

445

 

 

 

320

 

Accounts receivable, net of allowance of $95 and $74

 

5,780

 

 

 

4,166

 

Income taxes receivable

 

50

 

 

 

38

 

Prepaid expenses and other current assets

 

943

 

 

 

699

 

Total current assets

 

16,302

 

 

 

12,199

 

Property and equipment, net

 

2,438

 

 

 

2,447

 

Operating lease right-of-use assets

 

269

 

 

 

296

 

Long-term investments and other assets

 

1,804

 

 

 

1,387

 

Deferred income taxes

 

346

 

 

 

432

 

Intangible assets, net

 

878

 

 

 

819

 

Goodwill

 

7,024

 

 

 

6,872

 

TOTAL ASSETS

$

29,061

 

 

$

24,452

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

 

 

 

Accounts payable, merchant

$

2,465

 

 

$

2,188

 

Accounts payable, other

 

1,328

 

 

 

1,103

 

Deferred merchant bookings

 

15,426

 

 

 

10,428

 

Deferred revenue

 

175

 

 

 

163

 

Income taxes payable

 

55

 

 

 

56

 

Accrued expenses and other current liabilities

 

905

 

 

 

1,027

 

Current maturities of long-term debt

 

—

 

 

 

1,692

 

Total current liabilities

 

20,354

 

 

 

16,657

 

Long-term debt, excluding current maturities

 

5,459

 

 

 

4,469

 

Deferred income taxes

 

19

 

 

 

20

 

Operating lease liabilities

 

226

 

 

 

254

 

Other long-term liabilities

 

532

 

 

 

505

 

Commitments and contingencies

 

 

 

Stockholders’ equity:

 

 

 

Common stock: $.0001 par value; Authorized shares: 1,600,000

 

—

 

 

 

—

 

Shares issued: 293,809 and 291,448; Shares outstanding: 114,473 and 116,975

 

 

 

Class B common stock: $.0001 par value; Authorized shares: 400,000

 

—

 

 

 

—

 

Shares issued: 12,800 and 12,800; Shares outstanding: 5,523 and 5,523

 

 

 

Additional paid-in capital

 

16,783

 

 

 

16,565

 

Treasury stock – Common stock and Class B, at cost; Shares 186,613 and 181,749

 

(17,839

)

 

 

(16,786

)

Retained earnings

 

2,452

 

 

 

1,696

 

Accumulated other comprehensive income (loss)

 

(187

)

 

 

(191

)

Total Expedia Group, Inc. stockholders’ equity

 

1,209

 

 

 

1,284

 

Non-redeemable non-controlling interests

 

1,262

 

 

 

1,263

 

Total stockholders’ equity

 

2,471

 

 

 

2,547

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

29,061

 

 

$

24,452

 

 

 

 

 

EXPEDIA GROUP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)
 

 

Six months ended

June 30,

 

 

2026

 

 

 

2025

 

Operating activities:

 

 

 

Net income

$

863

 

 

$

125

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation of property and equipment, including internal-use software and website development

 

438

 

 

 

420

 

Amortization of intangible assets

 

18

 

 

 

22

 

Amortization of stock-based compensation

 

217

 

 

 

203

 

Deferred income taxes

 

83

 

 

 

1

 

Foreign exchange (gain) loss on cash, restricted cash and short-term investments, net

 

31

 

 

 

(137

)

Realized (gain) loss on foreign currency forwards, net

 

185

 

 

 

(160

)

(Gain) loss on minority equity investments, net

 

(125

)

 

 

258

 

Other, net

 

32

 

 

 

43

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(1,654

)

 

 

(1,759

)

Prepaid expenses and other assets

 

(230

)

 

 

(250

)

Accounts payable, merchant

 

283

 

 

 

119

 

Accounts payable, other, accrued expenses and other liabilities

 

282

 

 

 

296

 

Tax payable/receivable, net

 

(12

)

 

 

(6

)

Deferred merchant bookings

 

4,998

 

 

 

4,898

 

Net cash provided by operating activities

 

5,409

 

 

 

4,073

 

Investing activities:

 

 

 

Capital expenditures, including internal-use software and website development

 

(383

)

 

 

(396

)

Purchases of investments

 

(760

)

 

 

(428

)

Sales and maturities of investments

 

335

 

 

 

441

 

Proceeds from exchange of cross-currency interest rate swaps

 

692

 

 

 

—

 

Payments for exchange of cross-currency interest rate swaps

 

(692

)

 

 

—

 

Acquisitions and other, net

 

(400

)

 

 

163

 

Net cash used in investing activities

 

(1,208

)

 

 

(220

)

Financing activities:

 

 

 

Proceeds from issuance of long-term debt, net of issuance costs

 

986

 

 

 

985

 

Payments related to long-term debt

 

(1,828

)

 

 

(1,044

)

Purchases of treasury stock

 

(1,058

)

 

 

(1,072

)

Payment of dividends to stockholders

 

(116

)

 

 

(102

)

Proceeds from exercise of equity awards and employee stock purchase plan

 

25

 

 

 

25

 

Other, net

 

(66

)

 

 

28

 

Net cash used in financing activities

 

(2,057

)

 

 

(1,180

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents

 

(36

)

 

 

208

 

Net increase in cash, cash equivalents and restricted cash and cash equivalents

 

2,108

 

 

 

2,881

 

Cash, cash equivalents and restricted cash and cash equivalents at beginning of period

 

6,976

 

 

 

5,574

 

Cash, cash equivalents and restricted cash and cash equivalents at end of period

$

9,084

 

 

$

8,455

 

Notes & Definitions:

Booked Room Nights: Represents booked hotel room nights and property nights. Booked hotel room nights include both merchant and agency hotel room nights. Property nights are related to our alternative accommodation business.

Average Daily Rate (ADR) Booked: Represents the average paid rate per booked room night, calculated as total lodging gross bookings divided by booked room nights.

Booked Air Tickets: Includes both merchant and agency air bookings.

Gross Bookings: Generally represent the total retail value of transactions booked, recorded at the time of booking reflecting the total price due for travel by travelers, including taxes, fees and other charges, adjusted for cancellations and refunds.

Lodging Metrics: Reported on a booked basis except for revenue, which is on a stayed basis. Lodging consists of both merchant and agency model hotel and alternative accommodations.

B2C: The B2C segment provides a full range of travel and advertising services to our worldwide customers through a variety of consumer brands including: Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, Hotwire.com, and CarRentals.com.

B2B: The B2B segment fuels a wide range of travel and non-travel companies including airlines, offline travel agents, online retailers, corporate travel management and financial institutions, who leverage our leading travel technology and tap into our diverse supply to augment their offerings and market Expedia Group rates and availabilities to their travelers.

trivago: The trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its localized hotel metasearch websites.

Non-GAAP Measures

Expedia Group reports Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted EPS, Free Cash Flow and Adjusted Expenses (non-GAAP cost of revenue, non-GAAP selling and marketing, non-GAAP technology and content and non-GAAP general and administrative), all of which are supplemental measures to GAAP and are defined by the SEC as non-GAAP financial measures. These measures are among the primary metrics by which management evaluates the performance of the business and on which internal budgets are based. Management believes that investors should have access to the same set of tools that management uses to analyze our results. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS have certain limitations in that they do not take into account the impact of certain expenses to our consolidated statements of operations. We endeavor to compensate for the limitation of the non-GAAP measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP measures. Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted EPS also exclude certain items related to transactional tax matters, which may ultimately be settled in cash. We urge investors to review the detailed disclosure regarding these matters in the Management Discussion and Analysis and Legal Proceedings sections, as well as the notes to the financial statements, included in the Company’s annual and quarterly reports filed with the Securities and Exchange Commission. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

Adjusted EBITDA (Adjusted Earnings Before Interest, Taxes, Depreciation & Amortization) is defined as net income (loss) attributable to Expedia Group adjusted for:

(1) net income (loss) attributable to non-controlling interests;

(2) provision for income taxes;

(3) total other expenses, net;

(4) stock-based compensation expense, including compensation expense related to certain subsidiary equity plans;

(5) acquisition-related impacts, including

         (i) amortization of intangible assets and goodwill and intangible asset impairment,

        (ii) gains (losses) recognized on changes in the value of contingent consideration arrangements;

        (iii) upfront consideration paid to settle employee compensation plans of the acquiree; and

        (iv) related transaction fees;

(6) certain other items, including restructuring;

(7) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g. hotel and excise taxes), related to court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings;

(8) that portion of gains (losses) on revenue hedging activities that are included in other, net that relate to revenue recognized in the period; and

(9) depreciation.

The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items is unpredictable, not driven by core operating results and renders comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA is a useful measure for analysts and investors to evaluate our future on-going performance as this measure allows a more meaningful comparison of our performance and projected cash earnings with our historical results from prior periods and to the results of our competitors. Moreover, our management uses this measure internally to evaluate the performance of our business as a whole and our individual business segments. In addition, we believe that by excluding certain items, such as stock-based compensation and acquisition-related impacts, Adjusted EBITDA corresponds more closely to the cash operating income generated from our business and allows investors to gain an understanding of the factors and trends affecting the ongoing cash earnings capabilities of our business, from which capital investments are made and debt is serviced.

Trailing Twelve Month Financial Information. Expedia Group includes certain unaudited financial information for the trailing twelve months (“TTM”) ended June 30, 2026, which is calculated as the twelve months ended June 30, 2026. This presentation is not in accordance with GAAP. However, we believe that this presentation provides useful information to investors regarding our recent financial performance, and we view this presentation of the four most recently completed fiscal quarters as a key measurement period for investors to assess its historical results.

Adjusted Net Income (Loss) generally captures all items on the statements of operations that occur in normal course operations and have been, or ultimately will be, settled in cash and is defined as net income (loss) attributable to Expedia Group plus the following items, net of tax(a):

(1) stock-based compensation expense, including compensation expense related to equity plans of certain subsidiaries and equity-method investments;

(2) acquisition-related impacts, including;

        (i) amortization of intangible assets, including as part of equity-method investments, and goodwill and intangible asset impairment;

        (ii) gains (losses) recognized on changes in the value of contingent consideration arrangements;

        (iii) upfront consideration paid to settle employee compensation plans of the acquiree; and

        (iv) gains (losses) recognized on non-controlling investment basis adjustments when we acquire or lose controlling interests;

(3) currency gains or losses on U.S. dollar denominated cash;

(4) the changes in fair value of equity investments;

(5) certain other items, including restructuring charges;

(6) items included in legal reserves, occupancy tax and other, which includes reserves for potential settlement of issues related to transactional taxes (e.g., hotel occupancy and excise taxes), related court decisions and final settlements, and charges incurred, if any, for monies that may be required to be paid in advance of litigation in certain transactional tax proceedings, including as part of equity method investments;

(7) discontinued operations;

(8) the non-controlling interest impact of the aforementioned adjustment items; and

(9) unrealized gains (losses) on revenue hedging activities that are included in other, net.

During the fourth quarter of 2025 and first quarter of 2026, an adjustment for the loss related to the conversion option on our Convertible Notes, including amortization of the debt discount and change in fair value of the embedded derivative, was excluded from net income to calculate Adjusted Net Income.

We believe Adjusted Net Income (Loss) is useful to investors because it represents Expedia Group’s combined results, taking into account depreciation, which management believes is an ongoing cost of doing business, but excluding the impact of certain expenses and items not directly tied to the core operations of our businesses.

(a) We use a long-term projected tax rate in the calculation of Adjusted Net Income as we believe this tax rate provides better consistency across reporting periods and produces results that are reflective of Expedia Group’s long-term effective tax rate. This long-term projected tax rate is a total tax rate, and eliminates the effects of non-recurring and period-specific income tax items which can vary in size and frequency. We apply this tax rate to pretax income, as adjusted commensurate with our Adjusted Net Income definition. In 2024 and through the second quarter of 2025, we applied a 21.5% long-term projected tax rate to compute Adjusted Net Income. We adjusted our long-term projected tax rate to 20.0% to consider the net effect of U.S. tax law enacted in the third quarter of 2025.

Adjusted EPS is defined as Adjusted Net Income (Loss) divided by adjusted weighted average shares outstanding, which, when applicable, include dilution from our convertible debt instruments per the treasury stock method for Adjusted EPS. The treasury stock method assumes we would elect to settle the principal amount of the debt for cash and the conversion premium for shares. If the conversion prices for such instruments exceed our average stock price for the period, the instruments generally would have no impact to adjusted weighted average shares outstanding. This differs from the GAAP method for dilution from our convertible debt instruments, which include them on an if-converted method. We believe Adjusted EPS is useful to investors because it represents, on a per share basis, Expedia Group’s consolidated results, taking into account depreciation, which we believe is an ongoing cost of doing business, as well as other items which are not allocated to the operating businesses such as interest expense, taxes, foreign exchange gains or losses, and minority interest, but excluding the effects of certain expenses not directly tied to the core operations of our businesses. Adjusted Net Income (Loss) and Adjusted EPS have similar limitations as Adjusted EBITDA. In addition, Adjusted Net Income (Loss) does not include all items that affect our net income (loss) and net income (loss) per share for the period. Therefore, we think it is important to evaluate these measures along with our consolidated statements of operations.

Free Cash Flow is defined as net cash flow provided by operating activities less capital expenditures. Management believes Free Cash Flow is useful to investors because it represents the operating cash flow that our operating businesses generate, less capital expenditures but before taking into account other cash movements that are not directly tied to the core operations of our businesses, such as financing activities, foreign exchange or certain investing activities. Free Cash Flow has certain limitations in that it does not represent the total increase or decrease in the cash balance for the period, nor does it represent the residual cash flow for discretionary expenditures. Therefore, it is important to evaluate Free Cash Flow along with the consolidated statements of cash flows.

Adjusted Expenses exclude stock-based compensation related to expenses for stock options, restricted stock units and other equity compensation under applicable stock-based compensation accounting standards. Expedia Group excludes stock-based compensation from these measures primarily because they are non-cash expenses that we do not believe are necessarily reflective of our ongoing cash operating expenses and cash operating income. Moreover, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use when adopting applicable stock-based compensation accounting standards, management believes that providing non-GAAP financial measures that exclude stock-based compensation allows investors to make meaningful comparisons between our recurring core business operating results and those of other companies, as well as providing management with an important tool for financial operational decision making and for evaluating our own recurring core business operating results over different periods of time. There are certain limitations in using financial measures that do not take into account stock-based compensation, including the fact that stock-based compensation is a recurring expense and a valued part of employees’ compensation. Therefore, it is important to evaluate both our GAAP and non-GAAP measures. See the Notes to the Consolidated Statements of Operations for stock-based compensation by line item.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

This release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These forward-looking statements are based on assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. The use of words such as “believe,” “estimate,” “expect” and “will,” or the negative of these terms or other similar expressions, among others, generally identify forward-looking statements. However, these words are not the exclusive means of identifying such statements. In addition, any statements that refer to our outlook, expectations, projections or other characterizations of future events or circumstances are forward-looking statements and may include statements relating to future gross bookings; revenues; expenses; margins and margin expansion, including adjusted EBITDA margin expansion; profitability; net income (loss); earnings per share and other measures of results of operations and the prospects for future growth of Expedia Group’s business. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others:

  • intense competition from online travel agencies, suppliers, search engines, B2B businesses offering competing travel technology solutions and services, and emerging AI-powered platforms;

  • declines or disruptions in the travel industry due to economic conditions, geopolitical events, or public health issues;

  • dependence on relationships with travel suppliers and other B2B partners;

  • dependence on search engines and changes to search algorithms or traffic acquisition costs;

  • costs of maintaining brand awareness and marketing effectiveness;

  • payment processing risks, fraud, and third-party payment provider dependencies;

  • reliance on third-party business partners and service providers;

  • challenges in international operations and regulatory compliance;

  • risks from acquisitions, investments, divestitures, and commercial arrangements;

  • ability to retain and attract qualified personnel and key executives;

  • execution risks from strategic initiatives and operational transformations;

  • counterparty risks and foreign exchange exposure;

  • regulatory risks in alternative accommodations and evolving legal requirements;

  • tax law changes and interpretation uncertainties;

  • litigation and unfavorable legal outcomes;

  • intellectual property protection and infringement risks;

  • technology system failures, cybersecurity breaches, and data protection compliance;

  • privacy regulation compliance across multiple jurisdictions;

  • liquidity constraints and limited access to capital markets;

  • substantial indebtedness and covenant restrictions;

  • concentrated voting control and potential conflicts of interest;

  • ESG-related costs, risks, and stakeholder expectations;

  • climate change impacts on travel and operations; and

  • stock price volatility.

For more information about risks and uncertainties associated with Expedia Group’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our most recently filed periodic reports on Form 10-K and Form 10-Q, which are available on our investor relations website at ir.expediagroup.com and on the SEC website at www.sec.gov. All information provided in this release is as of August 5, 2026. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in Expedia Group’s expectations unless required by law.

 

Tabular Reconciliations for Non-GAAP Measures
 

Adjusted EBITDA
 

 

 

Three months ended

June 30,

 

Six months ended

June 30,

 

Year Ended

December 31,

 

TTM

June 30,

 

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

 

2025

 

 

 

2026

 

 

 

($ in millions)

Net income attributable to Expedia Group, Inc.

 

$

878

 

 

$

330

 

 

$

872

 

 

$

130

 

 

$

1,294

 

 

$

2,036

 

Net income (loss) attributable to non-controlling interests

 

 

(3

)

 

 

(8

)

 

 

(9

)

 

 

(5

)

 

 

7

 

 

 

3

 

Provision for income taxes

 

 

152

 

 

 

101

 

 

 

189

 

 

 

81

 

 

 

290

 

 

 

398

 

Total other (income) expense, net

 

 

(227

)

 

 

62

 

 

 

(1

)

 

 

209

 

 

 

280

 

 

 

70

 

Operating income

 

 

800

 

 

 

485

 

 

 

1,051

 

 

 

415

 

 

 

1,871

 

 

 

2,507

 

Gain (loss) on revenue hedges related to revenue recognized

 

 

(40

)

 

 

52

 

 

 

(68

)

 

 

75

 

 

 

60

 

 

 

(83

)

Restructuring and related reorganization charges, excluding stock-based compensation

 

 

11

 

 

 

41

 

 

 

63

 

 

 

67

 

 

 

100

 

 

 

96

 

Legal reserves, occupancy tax and other

 

 

6

 

 

 

2

 

 

 

(58

)

 

 

2

 

 

 

185

 

 

 

125

 

Stock-based compensation

 

 

114

 

 

 

105

 

 

 

217

 

 

 

203

 

 

 

398

 

 

 

412

 

Depreciation and amortization

 

 

228

 

 

 

223

 

 

 

456

 

 

 

442

 

 

 

887

 

 

 

901

 

Adjusted EBITDA

 

$

1,119

 

 

$

908

 

 

$

1,661

 

 

$

1,204

 

 

$

3,501

 

 

$

3,958

 

Net income margin(1)

 

 

20.4

%

 

 

8.7

%

 

 

11.3

%

 

 

1.9

%

 

 

8.8

%

 

 

13.0

%

Adjusted EBITDA margin(1)

 

 

25.9

%

 

 

24.0

%

 

 

21.5

%

 

 

17.8

%

 

 

23.8

%

 

 

25.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA by segment:

 

 

 

 

 

 

 

 

 

 

 

 

B2C

 

$

889

 

 

$

728

 

 

$

1,315

 

 

$

945

 

 

$

2,798

 

 

$

3,168

 

B2B

 

 

369

 

 

 

331

 

 

 

638

 

 

 

547

 

 

 

1,257

 

 

 

1,348

 

trivago

 

 

1

 

 

 

(6

)

 

 

(6

)

 

 

(11

)

 

 

20

 

 

 

25

 

Segment Adjusted EBITDA

 

 

1,259

 

 

 

1,053

 

 

 

1,947

 

 

 

1,481

 

 

 

4,075

 

 

 

4,541

 

Unallocated corporate and other expenses (2)

 

 

(140

)

 

 

(145

)

 

 

(286

)

 

 

(277

)

 

 

(574

)

 

 

(583

)

Adjusted EBITDA

 

$

1,119

 

 

$

908

 

 

$

1,661

 

 

$

1,204

 

 

$

3,501

 

 

$

3,958
(1) Net income and Adjusted EBITDA margins represent net income (loss) attributable to Expedia Group, Inc. or Adjusted EBITDA divided by revenue.
(2) Unallocated corporate and other expenses include certain shared expenses such as accounting, human resources and certain information and technology and legal costs.

Adjusted Net Income (Loss) & Adjusted EPS
 

 

 

Three months ended

June 30,

 

Six months ended

June 30,

 

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

 

(In millions, except share and per share data)

Net income attributable to Expedia Group, Inc.

 

$

878

 

 

$

330

 

 

$

872

 

 

$

130

 

Less: Net (income) loss attributable to non-controlling interests

 

 

3

 

 

 

8

 

 

 

9

 

 

 

5

 

Less: Provision for income taxes

 

 

(152

)

 

 

(101

)

 

 

(189

)

 

 

(81

)

Income before income taxes

 

 

1,027

 

 

 

423

 

 

 

1,052

 

 

 

206

 

Amortization of intangible assets

 

 

11

 

 

 

11

 

 

 

18

 

 

 

22

 

Stock-based compensation

 

 

114

 

 

 

105

 

 

 

217

 

 

 

203

 

Legal reserves, occupancy tax and other

 

 

6

 

 

 

2

 

 

 

(58

)

 

 

2

 

Restructuring and related reorganization charges, excluding stock-based compensation

 

 

11

 

 

 

41

 

 

 

63

 

 

 

67

 

Unrealized (gain) loss on revenue hedges

 

 

(8

)

 

 

3

 

 

 

4

 

 

 

4

 

(Gain) loss on minority equity investments, net

 

 

(280

)

 

 

102

 

 

 

(125

)

 

 

258

 

Loss related to the conversion option on convertible notes

 

 

—

 

 

 

—

 

 

 

10

 

 

 

—

 

Other adjustments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(2

)

Adjusted income before income taxes

 

 

881

 

 

 

687

 

 

 

1,181

 

 

 

760

 

 

 

 

 

 

 

 

 

 

GAAP Provision for income taxes

 

 

(152

)

 

 

(101

)

 

 

(189

)

 

 

(81

)

Provision for income taxes for adjustments

 

 

(24

)

 

 

(47

)

 

 

(47

)

 

 

(83

)

Total Adjusted provision for income taxes

 

 

(176

)

 

 

(148

)

 

 

(236

)

 

 

(164

)

Total Adjusted income tax rate

 

 

20.0

%

 

 

21.5

%

 

 

20.0

%

 

 

21.5

%

 

 

 

 

 

 

 

 

 

Non-controlling interests

 

 

1

 

 

 

7

 

 

 

6

 

 

 

3

 

Adjusted net income

 

$

706

 

 

$

546

 

 

$

951

 

 

$

599

 

 

 

 

 

 

 

 

 

 

GAAP diluted earnings per share

 

$

7.16

 

 

$

2.48

 

 

$

7.05

 

 

$

0.96

 

Amortization of intangible assets

 

 

0.09

 

 

 

0.08

 

 

 

0.15

 

 

 

0.17

 

Stock-based compensation

 

 

0.94

 

 

 

0.81

 

 

 

1.76

 

 

 

1.55

 

Legal reserves, occupancy tax and other

 

 

0.05

 

 

 

0.02

 

 

 

(0.47

)

 

 

0.02

 

Restructuring and related reorganization charges, excluding stock-based compensation

 

 

0.09

 

 

 

0.32

 

 

 

0.51

 

 

 

0.51

 

Unrealized (gain) loss on revenue hedges

 

 

(0.07

)

 

 

0.03

 

 

 

0.03

 

 

 

0.03

 

(Gain) loss on minority equity investments, net

 

 

(2.29

)

 

 

0.79

 

 

 

(1.01

)

 

 

1.98

 

Loss related to the conversion option on convertible notes

 

 

—

 

 

 

—

 

 

 

0.09

 

 

 

—

 

Other adjustments

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.01

)

Income tax effects and adjustments

 

 

(0.20

)

 

 

(0.36

)

 

 

(0.38

)

 

 

(0.63

)

Non-controlling interests

 

 

(0.02

)

 

 

(0.01

)

 

 

(0.03

)

 

 

(0.01

)

Adjustment to GAAP dilutive securities (1)

 

 

—

 

 

 

0.08

 

 

 

—

 

 

 

0.03

 

Adjusted earnings per share(2)

 

$

5.76

 

 

$

4.24

 

 

$

7.68

 

 

$

4.60

 

 

 

 

 

 

 

 

 

 

GAAP diluted weighted average shares outstanding (000’s)

 

 

122,552

 

 

 

132,809

 

 

 

123,763

 

 

 

134,296

 

Adjustment to dilutive securities (000’s)(1)

 

 

—

 

 

 

(3,933

)

 

 

—

 

 

 

(3,928

)

Adjusted weighted average shares outstanding (000’s) (2)

 

 

122,552

 

 

 

128,877

 

 

 

123,763

 

 

 

130,368

 
(1) In periods for which we have Adjusted net income, the GAAP diluted average shares and diluted earnings (loss) per share is presented. In addition, we adjusted for our convertible debt instruments, during the period outstanding prior to November 2025, per the treasury stock method.
(2) Share and per share numbers may not add due to rounding.

Free Cash Flow
 

 

 

Three months ended

June 30,

 

Six months ended

June 30,

 

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

 

2025

 

 

 

(In millions)

Net cash provided by operating activities

 

$

1,478

 

 

$

1,121

 

 

$

5,409

 

 

$

4,073

 

Less: Total capital expenditures

 

 

(199

)

 

 

(200

)

 

 

(383

)

 

 

(396

)

Free cash flow

 

$

1,279

 

 

$

921

 

 

$

5,026

 

 

$

3,677

 

Adjusted Expenses (Cost of revenue, direct and indirect selling and marketing, technology and content and general and administrative expenses)
 

 

 

Three months ended

June 30,

 

Six months ended

June 30,

 

 

2026

 

2025

 

2026

 

2025

 

 

(In millions)

Cost of revenue

 

$

403

 

$

377

 

$

780

 

$

734

Less: stock-based compensation

 

 

4

 

 

4

 

 

8

 

 

7

Adjusted cost of revenue

 

$

399

 

$

373

 

$

772

 

$

727

 

 

 

 

 

 

 

 

 

Selling and marketing – direct

 

$

2,119

 

$

1,920

 

$

3,975

 

$

3,677

 

 

 

 

 

 

 

 

 

Selling and marketing – indirect

 

$

217

 

$

213

 

 

419

 

 

412

Less: stock-based compensation

 

 

24

 

 

23

 

 

42

 

 

43

Adjusted selling and marketing – indirect

 

$

193

 

$

190

 

$

377

 

$

369

 

 

 

 

 

 

 

 

 

Technology and content

 

$

325

 

$

325

 

$

649

 

$

645

Less: stock-based compensation

 

 

40

 

 

39

 

 

78

 

 

77

Adjusted technology and content

 

$

285

 

$

286

 

$

571

 

$

568

 

 

 

 

 

 

 

 

 

General and administrative

 

$

204

 

$

197

 

$

400

 

$

377

Less: stock-based compensation

 

 

44

 

 

36

 

 

83

 

 

73

Adjusted general and administrative

 

$

160

 

$

161

 

$

317

 

$

304

 

 

 

 

 

 

 

 

 

Total adjusted overhead expenses(1)

 

$

638

 

$

637

 

$

1,265

 

$

1,241
Note: Some numbers may not add due to rounding.
(1) Total adjusted overhead expenses is the sum of adjusted expenses for Selling and marketing – indirect, Technology and content, and General and administrative.

 

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