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TriNet Announces Third Quarter 2024 Results

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DUBLIN, Calif., Oct. 25, 2024 /PRNewswire/ — TriNet Group, Inc. (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses, today announced financial results for the third quarter ended September 30, 2024. The third quarter highlights below include non-GAAP financial measures which are reconciled later in this release.

Third quarter highlights include:

Total revenues increased 1% to $1.2 billion as compared to the same period last year.Flat professional service revenues of $184 million as compared to the same period last year.Net income was $45 million, or $0.89 per diluted share, compared to net income of $94 million, or $1.63 per diluted share, in the same period last year.Adjusted Net Income was $59 million, or $1.17 per diluted share, compared to Adjusted Net Income of $109 million, or $1.91 per diluted share, in the same period last year.Adjusted EBITDA was $109 million, compared to Adjusted EBITDA of $172 million, in the same period last year.Average WSEs increased 7% as compared to the same period last year, to approximately 356,000 and includes approximately 20,000 PEO Platform Users.Average HRIS Users for the period was approximately 183,000.At September 30, 2024, TriNet had unrestricted cash and cash equivalents of $251 million, unrestricted investments of $195 million and total debt of $1.1 billion.

“Small businesses are navigating a challenging business climate, hiring very carefully, and dealing with healthcare cost inflation steeper than we have seen in several years,” said Mike Simonds, TriNet’s President and CEO. “TriNet is not immune from these conditions and higher healthcare costs adversely impacted our profitability in the quarter.”

Mr. Simonds continued, “Fortunately, our model allows us to quickly take action and align our pricing with healthcare cost trends. We repriced our largest cohort of healthcare fees on October 1, and we experienced strong customer retention. Following our January 1 renewal, we will have priced for the current elevated cost trends across more than two thirds of our PEO business. Our colleagues are extremely engaged, delivering strong service to our customers and record retention levels in 2024 despite the challenging environment. Nearly eight months into this role, I am excited by the opportunity in front of us to grow our business profitably in an increasingly focused, disciplined, and customer-centric fashion.”

Fourth Quarter and Full-Year 2024 Guidance

In addition to announcing our third quarter 2024 results, we provide our fourth quarter and full-year 2024 guidance. Non-GAAP financial measures are reconciled later in this release. Percentages reflect the increase or (decrease) from the prior year quarter and prior year end.

Q4 2024

Full Year 2024

Low

High

Low

High

Total Revenues

(1) %

2 %

1 %

2 %

Professional Service Revenues

(8) %

(5) %

— %

1 %

Insurance Cost Ratio

96.5 %

93.5 %

90.3 %

89.6 %

Diluted net income per share of common stock

$(0.19)

$0.31

$3.70

$4.20

Adjusted Net Income per share – diluted

$0.06

$0.57

$4.95

$5.45

Quarterly Report on Form 10-Q

We anticipate filing our Quarterly Report on Form 10-Q (“Form 10-Q”) for the nine months ended September 30, 2024 with the U.S. Securities and Exchange Commission (SEC) and making it available at http://www.trinet.com today, October 25, 2024. This press release should be read in conjunction with the Form 10-Q and the related Notes to Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in the Form 10-Q.

Earnings Conference Call and Audio Webcast

TriNet will host a conference call at 5:30 a.m. PT (8:30 a.m. ET) today to discuss its third quarter results for 2024 and provide fourth quarter and full-year financial guidance for 2024. TriNet encourages participants to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. To pre-register, go to: https://dpregister.com/sreg/10193255/fda58bcb7d. For those who would like to join the call but have not pre-registered, they can do so by dialing +1 (412) 317-5426 and requesting the “TriNet Conference Call.” The live webcast of the conference call can be accessed on the Investor Relations section of TriNet’s website at http://investor.trinet.com. Participants can pre-register for the webcast by going to: https://events.q4inc.com/attendee/366545303 A replay of the webcast will be available on this website for approximately one year. A telephonic replay will be available for two weeks following the conference call at +1 (412) 317-0088 conference ID: 1675204.

About TriNet

TriNet provides small and medium-size businesses (SMBs) with full-service industry-specific HR solutions, providing both professional employer organization (PEO) and human resources information system (HRIS) services. TriNet offers access to human capital expertise, benefits, risk mitigation, compliance, payroll, and R&D tax credit services, all enabled by industry-leading technology. TriNet’s suite of products also includes services and software-based solutions to help streamline workflows by connecting HR, benefits, employee engagement, payroll and time & attendance. Rooted in more than 30 years of supporting entrepreneurs and adapting to the ever-changing modern workplace, TriNet empowers SMBs to focus on what matters most – growing their business and enabling their people For more information, please visit TriNet.com or follow us on Facebook, LinkedIn and Instagram.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to TriNet’s financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled “Non-GAAP Financial Measures.”

Forward-Looking Statements

This press release contains, and statements made during the above referenced conference call will contain, statements that are not historical in nature, are predictive in nature, or that depend upon or refer to future events or conditions or otherwise contain forward-looking statements within the meaning of Section 21 of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, among other things, TriNet’s expectations and assumptions regarding: TriNet’s financial guidance for the fourth quarter and full-year 2024 and the underlying assumptions, the value to customers and shareholders of TriNet’s product offerings, TriNet’s financial performance and long-term growth, and the extent, length and growth impact of current economic uncertainty. Forward-looking statements are often identified by the use of words such as, but not limited to, “ability,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “guidance,” “impact,” “intend,” “may,” “plan,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” “value,” “will,” “would” and similar expressions or variations. Examples of forward-looking statements include, among others, TriNet’s expectations regarding our ability to continue to have our value proposition resonate at required pricing levels; ability to manage our expenses diligently; and our ability to meet our forecasted retention goals. These statements are not guarantees of future performance but are based on management’s expectations as of the date hereof and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from our current expectations and any past or future results, performance or achievements. Investors are cautioned not to place undue reliance upon any forward-looking statements.

Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include: our ability to manage unexpected changes in workers’ compensation and health insurance claims and costs by WSEs; our ability to mitigate the unique business risks we face as a co-employer; the effects of volatility in the financial and economic environment on the businesses that make up our client base; loss of clients for reasons beyond our control and the short-term contracts we typically use with our clients; the impact of regional or industry-specific economic and health factors on our operations; the impact of failures or limitations in the business systems and centers we rely upon; the impact of discontinuing our discretionary credits on our business and client loyalty and retention; changes in our insurance coverage or our relationships with key insurance carriers; our ability to improve our services and technology to satisfy client and regulatory expectations; our ability to effectively integrate businesses we have acquired or may acquire in the future; our ability to effectively manage and improve our operational effectiveness and resiliency; our ability to attract and retain qualified personnel; the effects of increased competition and our ability to compete effectively; the impact on our business of cyber-attacks, breaches, disclosures and other data-related incidents; our ability to protect against and remediate cyber-attacks, breaches, disclosures and other data-related incidents, whether intentional or inadvertent and whether attributable to us or our service providers; our ability to comply with evolving data privacy and security laws; our ability to manage changes in, uncertainty regarding, or adverse application of the complex laws and regulations that govern our business; changing laws and regulations governing health insurance and employee benefits; our ability to be recognized as an employer of worksite employees and for our benefits plans to satisfy all requirements under federal and state regulations; changes in the laws and regulations that govern what it means to be an employer, employee or independent contractor; the impact of new and changing laws regarding remote work; our ability to comply with the licensing requirements that govern our solutions; the outcome of existing and future legal and tax proceedings; fluctuation in our results of operations and stock price due to factors outside of our control; our ability to comply with the restrictions of our credit facility and meet our debt obligations; and the impact of concentrated ownership in our stock by Atairos and other large stockholders; and our ability to manage risks associated with our international operations. Any of these factors could cause our actual results to differ materially from our anticipated results.

Further information on risks that could affect TriNet’s results is included in our filings with the SEC, including under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on our investor relations website at http://investor.trinet.com and on the SEC website at www.sec.gov. Copies of these filings are also available by contacting TriNet Corporation’s Investor Relations Department at (510) 875-7201. Except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements in this press release, and any forward-looking statements in this press release speak only as of the date of this press release. In addition, we do not assume any obligation, and do not intend, to update any of our forward-looking statements, except as required by law.

Contacts:

Investors:

Media:

Alex Bauer

Renee Brotherton

TriNet

TriNet

Alex.Bauer@TriNet.com

Renee.Brotherton@TriNet.com

(510) 875-7201

(925) 965-8441

Key Financial and Operating Metrics

We regularly review certain key financial and operating metrics to evaluate growth trends, measure our performance and make strategic decisions. These key financial and operating metrics may change over time. Our key financial and operating metrics for the periods presented were as follows:

Three Months Ended September 30,

Nine Months Ended September 30,

(in millions, except per share and Operating Metrics data)

2024

2023

% Change

2024

2023

% Change

Income Statement Data:

Total revenues

$ 1,237

$ 1,222

1

%

$ 3,727

$ 3,677

1

%

Operating income

58

116

(50)

261

382

(32)

Net income

45

94

(52)

196

308

(36)

Diluted net income per share of common stock

0.89

1.63

(45)

3.87

5.20

(26)

Non-GAAP measures (1):

Adjusted EBITDA

109

172

(37)

425

557

(24)

Adjusted Net income

59

109

(46)

247

365

(32)

Operating Metrics:

Insurance Cost Ratio

90 %

84 %

6

%

88 %

83 %

5

Average WSEs (2)

355,948

333,286

7

351,856

329,257

7

%

Total WSEs at period end (2)

356,137

335,741

6

356,137

335,741

6

Average HRIS Users (3)

183,410

210,863

(13)

189,929

219,058

(13)

(1)

Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading “Non-GAAP Financial Measures”.

(2)

Total WSEs and Average WSEs include incremental WSEs that were charged a platform user access fee and incremental additional service recipients. These were identified as a result of our ongoing effort to ensure that our billing practices best match the expectations of our customers. Please refer to Management Discussion & Analysis in our 2024 10-Q.

 

(in millions)

September 30,
2024

December 31,
2023

%
Change

Balance Sheet Data:

Working capital

165

115

43

%

Total assets

3,729

3,693

1

Debt

1,068

1,093

(2)

Total stockholders’ equity

129

78

65

 

Nine Months Ended September 30,

(in millions)

2024

2023

%
Change

Cash Flow Data:

Net cash used in operating activities

$ (276)

$ (43)

542

%

Net cash used in investing activities

(25)

(57)

(56)

Net cash used in financing activities

(217)

(523)

(59)

Non-GAAP measure (1):

Corporate Operating Cash Flows

$ 213

$ 386

(45)

(1)

Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading “Non-GAAP Financial Measures”.

 

TRINET GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)

Three Months Ended
September 30,

Nine Months Ended
September 30,

(in millions except per share data)

2024

2023

2024

2023

Professional service revenues

$ 184

$ 185

$ 584

$ 567

Insurance service revenues

1,053

1,037

3,143

3,110

Total revenues

1,237

1,222

3,727

3,677

Insurance costs

949

874

2,772

2,594

Cost of providing services

74

74

228

231

Sales and marketing

74

75

218

214

General and administrative

46

51

140

154

Systems development and programming

17

15

52

49

Depreciation and amortization of intangible assets

19

17

56

53

Total costs and operating expenses

1,179

1,106

3,466

3,295

Operating income

58

116

261

382

Other income (expense):

Interest expense, bank fees and other

(15)

(10)

(47)

(23)

Interest income

15

18

49

57

Income before provision for income taxes

58

124

263

416

Income taxes

13

30

67

108

Net income

$ 45

$ 94

$ 196

$ 308

Other comprehensive income (loss), net of income taxes

7

(2)

4

(3)

Comprehensive income

$ 52

$ 92

$ 200

$ 305

Net income per share:

Basic

$ 0.90

$ 1.65

$ 3.91

$ 5.23

Diluted

$ 0.89

$ 1.63

$ 3.87

$ 5.20

Weighted average shares:

Basic

50

57

50

59

Diluted

50

58

51

59

 

TRINET GROUP, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)

September 30,

December 31,

(in millions, except share and per share data)

2024

2023

ASSETS

Current assets:

Cash and cash equivalents

$ 251

$ 287

Investments

50

65

Restricted cash, cash equivalents and investments

780

1,269

Accounts receivable, net

15

18

Unbilled revenue, net

511

447

Prepaid expenses, net

64

67

Other payroll assets

883

381

Other current assets

51

44

Total current assets

2,605

2,578

Restricted cash, cash equivalents and investments, noncurrent

153

158

Investments, noncurrent

145

143

Property and equipment, net

14

17

Operating lease right-of-use asset

30

24

Goodwill

462

462

Software and other intangible assets, net

179

172

Other assets

141

139

Total assets

$ 3,729

$ 3,693

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable and other current liabilities

$ 82

$ 87

Revolving credit agreement borrowings

75

109

Client deposits and other client liabilities

39

65

Accrued wages

566

515

Accrued health insurance costs, net

193

175

Accrued workers’ compensation costs, net

44

50

Payroll tax liabilities and other payroll withholdings

1,420

1,438

Operating lease liabilities

15

14

Insurance premiums and other payables

6

10

Total current liabilities

2,440

2,463

Long-term debt, noncurrent

993

984

Accrued workers’ compensation costs, noncurrent, net

107

120

Deferred taxes

18

13

Operating lease liabilities, noncurrent

30

30

Other non current liabilities

12

5

Total liabilities

3,600

3,615

Stockholders’ equity:

Preferred stock

Common stock and additional paid-in capital

1,037

976

Accumulated deficit

(910)

(896)

Accumulated other comprehensive loss

2

(2)

Total stockholders’ equity

129

78

Total liabilities & stockholders’ equity

$ 3,729

$ 3,693

 

TRINET GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

Nine Months Ended
September 30,

(in millions)

2024

2023

Operating activities

Net income

$ 196

$ 308

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization of intangible assets

56

53

Amortization of deferred costs

32

31

Amortization of ROU asset, lease modification, impairment, and abandonment

4

5

Deferred income taxes

3

Stock based compensation

53

43

Other

3

1

Changes in operating assets and liabilities:

Accounts receivable, net

2

(4)

Unbilled revenue, net

(64)

(29)

Prepaid expenses, net

3

(4)

Other assets

(44)

(44)

Other payroll assets

(502)

(104)

Accounts payable and other liabilities

(13)

9

Client deposits and other client liabilities

(27)

(33)

Accrued wages

52

21

Accrued health insurance costs, net

18

9

Accrued workers’ compensation costs, net

(19)

(9)

Payroll taxes payable and other payroll withholdings

(18)

(283)

Operating lease liabilities

(11)

(13)

Net cash used in operating activities

(276)

(43)

Investing activities

Purchases of marketable securities

(161)

(226)

Proceeds from sale and maturity of marketable securities

196

223

Acquisitions of property and equipment and software

(60)

(54)

Net cash used in investing activities

(25)

(57)

Financing activities

Repurchase of common stock

(155)

(1,109)

Proceeds from issuance of common stock

6

9

Proceeds from revolving credit agreement borrowings

695

Revolver repayment

(495)

Proceeds from issuance of 2031 Notes

400

Awards effectively repurchased for required employee withholding taxes

(18)

(14)

Payment of long-term financing fees and debt issuance costs

(9)

Repayment of revolving credit agreement borrowings

(25)

Dividends paid

(25)

Net cash used in financing activities

(217)

(523)

Net change in cash and cash equivalents, unrestricted and restricted

(518)

(623)

Cash and cash equivalents, unrestricted and restricted:

Beginning of period

1,466

1,537

End of period

$ 948

$ 914

Supplemental disclosures of cash flow information

Interest paid

$ 55

$ 21

Income taxes paid, net

$ 67

$ 89

Supplemental schedule of noncash investing and financing activities

Cash dividend declared, but not yet paid

$ 12

$ —

Payable for purchase of property and equipment

$ 2

$ 2

Non-GAAP Financial Measures

In addition to the selected financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), we monitor other non-GAAP financial measures that we use to manage our business, to make planning decisions, to allocate resources and to use as performance measures in our executive compensation plan. These key financial measures provide an additional view of our operational performance over the long term and provide information that we use to maintain and grow our business.

The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation from, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with GAAP.

Non-GAAP Measure

Definition

How We Use The Measure

Adjusted EBITDA

• Net income, excluding the effects of:

– income tax provision,

– interest expense, bank fees and other,

– depreciation,

– amortization of intangible assets,

– stock based compensation expense,

– amortization of cloud computing arrangements, and

– transaction and integration costs.

• Provides period-to-period comparisons on a consistent basis and an understanding as to how our management evaluates the effectiveness of our business strategies by excluding certain non-recurring costs, which include transaction and integration costs, as well as certain non-cash charges such as depreciation and amortization, and stock-based compensation and certain impairment charges recognized based on the estimated fair values. We believe these charges are either not directly resulting from our core operations or not indicative of our ongoing operations.

• Enhances comparisons to the prior period and, accordingly, facilitates the development of future projections and earnings growth prospects.

• Provides a measure, among others, used in the determination of incentive compensation for management.

• We also sometimes refer to Adjusted EBITDA margin, which is the ratio of Adjusted EBITDA to total revenues.

Adjusted Net Income

• Net income, excluding the effects of:

– effective income tax rate (1),

– stock based compensation,

– amortization of intangible assets, net,

– non-cash interest expense,

– transaction and integration costs, and

– the income tax effect (at our effective tax rate (1) of these pre-tax adjustments.

• Provides information to our stockholders and board of directors to understand how our management evaluates our business, to monitor and evaluate our operating results, and analyze profitability of our ongoing operations and trends on a consistent basis by excluding certain non-cash charges.

Corporate Operating Cash Flows

• Net cash provided by (used in) operating activities, excluding the effects of:

– Assets associated with WSEs and TriNet Trust (accounts receivable, unbilled revenue, prepaid expenses, other payroll assets and other current assets) and

– Liabilities associated with WSEs and TriNet Trust (client deposits and other client liabilities, accrued wages, payroll tax liabilities and other payroll withholdings, accrued health insurance costs, accrued workers’ compensation costs, insurance premiums and other payables, and other current liabilities).

• Provides information that our stockholders and management can use to evaluate our cash flows from operations independent of the current assets and liabilities associated with our WSEs and TriNet Trust.

• Enhances comparisons to prior periods and, accordingly, used as a liquidity measure to manage liquidity between corporate and WSE and TriNet Trust related activities, and to help determine and plan our cash flow and capital strategies.

(1)

Non-GAAP effective tax rate is 25.6% for the third quarters and full years of 2024 and 2023, which excludes the income tax impact from stock-based compensation, changes in uncertain tax positions, and nonrecurring benefits or expenses from federal legislative changes.

(2)

Non-cash interest expense represents amortization and write-off of our debt issuance costs and loss on a terminated derivative.

Reconciliation of GAAP to Non-GAAP Measures

The table below presents a reconciliation of net income to Adjusted EBITDA:

Three Months Ended
September 30,

Nine Months Ended

September 30,

(in millions)

2024

2023

2024

2023

Net income

$ 45

$ 94

$ 196

$ 308

Provision for income taxes

13

30

67

108

Stock based compensation

15

15

53

43

Interest expense, bank fees and other

15

10

47

23

Depreciation and amortization of intangible assets

19

17

56

53

Amortization of cloud computing arrangements

2

3

6

7

Transaction and integration costs

3

15

Adjusted EBITDA

$ 109

$ 172

$ 425

$ 557

Adjusted EBITDA Margin

8.8 %

14.1 %

11.4 %

15.1 %

The table below presents a reconciliation of net income to Adjusted Net Income and Adjusted Net Income per share – diluted:

Three Months Ended
September 30,

Nine Months Ended

September 30,

(in millions, except per share data)

2024

2023

2024

2023

Net income

$ 45

$ 94

$ 196

$ 308

Effective income tax rate adjustment

(2)

(2)

1

Stock based compensation

15

15

53

43

Amortization of intangible assets

5

5

14

16

Non-cash interest expense

1

2

1

Transaction and integration costs

3

15

Income tax impact of pre-tax adjustments

(5)

(6)

(18)

(19)

Adjusted Net Income

$ 59

$ 109

$ 247

$ 365

GAAP weighted average shares of common stock – diluted

50

58

51

59

Adjusted Net Income per share – diluted

$ 1.17

$ 1.91

$ 4.88

$ 6.16

The table below presents a reconciliation of net cash provided by operating activities to Corporate Operating Cash flows:

Nine Months Ended

September 30,

(in millions)

2024

2023

Net cash used in operating activities

$ (276)

$ (43)

Less: Change in WSE & TriNet Trust related other current assets

(548)

(134)

Less: Change in WSE & TriNet Trust related current liabilities

59

(295)

Net cash used in operating activities – WSE & TriNet Trust

$ (489)

$ (429)

Net cash provided by operating activities – Corporate

$ 213

$ 386

Reconciliation of GAAP to Non-GAAP Measures for the fourth quarter and full-year 2024 guidance.

Low and high percentages represent increases (decreases) from the same periods in the previous year.

The table below presents a reconciliation of net income to Adjusted Net Income and Adjusted Net Income per share – diluted:

Q4 2023

Q4 2024 Guidance

FY 2023

Year 2024 Guidance

(in millions, except per share data)

Actual

Low

High

Actual

Low

High

Net income

$67

(114) %

(77) %

$375

(50) %

(44) %

Effective income tax rate adjustment

(3)

(73)

(59)

(2)

(28)

(3)

Stock based compensation

16

(17)

(12)

59

11

13

Amortization of intangible assets

5

1

1

20

(5)

(5)

Non-cash interest expense

1

(100)

(100)

2

(20)

(20)

Transaction and integration costs

2

(100)

(100)

17

(100)

(100)

Income tax impact of pre-tax adjustments

(6)

(24)

(20)

(25)

(12)

(11)

Adjusted Net Income

$82

(96) %

(65) %

$446

(44) %

(38) %

GAAP weighted average shares of common stock – diluted

51

57

Adjusted Net Income per share – diluted

$1.60

$0.06

$0.57

$7.81

$4.95

$5.45

 

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SOURCE TriNet Group, Inc.

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Technology

BTQ Technologies’ QSSN Selected as Core Security Infrastructure for South Korea’s First Bank-Led KRW Stablecoin Proof-of-Concept

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BTQ provides strategic advisory support and QSSN as core PQC security infrastructure for the iM Bank initiative on the Kaia mainnet, advancing post-quantum migration across global financial infrastructure

BTQ has been selected as the core post-quantum cryptography security technology provider for South Korea’s first bank-led KRW stablecoin proof-of-concept, delivering its Quantum Secure Stablecoin Settlement Network (“QSSN”) for the initiative.
 BTQ is providing strategic advisory support and helping coordinate implementation across the partnership with iM Bank and Finger, supporting the integration of post-quantum protections into regulated digital money infrastructure.
 Built on the Kaia mainnet, the proof-of-concept is connected to the blockchain ecosystems originally developed by Kakao and LINE, linking the initiative to two of the largest messaging and digital platform ecosystems in Korea and Japan.

VANCOUVER, BC, May 6, 2026 /PRNewswire/ – BTQ Technologies Corp. (“BTQ” or the “Company”) (Nasdaq: BTQ) (CBOE CA: BTQ), a global quantum technology company focused on securing mission-critical networks, today announced that it it has been selected as the core PQC security technology provider through its Quantum Secure Stablecoin Settlement Network (“QSSN”) in a proof-of-concept with its Korean strategic partner, Finger Inc. (“Finger”), and iM Bank, a leading Korean commercial bank, for South Korea’s first bank-led Korean won stablecoin infrastructure incorporating post-quantum cryptography (“PQC”).

The proof-of-concept represents more than a technical pilot. It marks an important step in bringing next-generation quantum security into banking infrastructure within Korea’s regulated financial system. In addition to providing QSSN as the core PQC security framework, BTQ is contributing consulting and strategic coordination across the three-way partnership, helping align the project’s security architecture, implementation approach, and long-term post-quantum migration objectives.

“Post-quantum migration requires more than a cryptographic upgrade. It requires coordination across infrastructure, implementation, and institutional stakeholders,” said Olivier Roussy Newton, Chief Executive Officer of BTQ Technologies. “In this initiative, BTQ is providing both strategic advisory support and QSSN as the post-quantum security architecture, while helping lead coordination across the three-way partnership. We believe this proof-of-concept demonstrates how financial institutions can begin integrating quantum-resilient protections into digital money systems in a practical and operationally viable way.”

South Korea’s First Bank-Led PQC Stablecoin Infrastructure Initiative

BTQ is working alongside iM Bank and Finger on a three-way initiative to validate the issuance and distribution infrastructure for a Korean won stablecoin. In addition to supplying QSSN as the PQC security layer, BTQ is providing consulting support and helping to guide coordination across the partnership as the parties evaluate how to integrate post-quantum protections into bank-led digital asset infrastructure.

The proof-of-concept will validate several key components, including real-time reconciliation between bank reserves and blockchain-issued supply, a global-standard smart contract architecture, connectivity to global infrastructure for overseas distribution, and the integration of a PQC-based dual-signature security structure. By applying BTQ’s PQC signature architecture alongside the existing ECDSA cryptographic framework, the system is designed to preserve operational continuity for financial institutions while proactively addressing future quantum computing threats.

Built on Kaia Mainnet

A notable feature of the proof-of-concept is that it will be implemented on the Kaia mainnet, one of Korea’s leading Layer 1 blockchain networks. Kaia was created through the merger of Klaytn, the blockchain originally developed by Kakao, and Finschia, the blockchain associated with LINE. Kakao and LINE sit at the center of two of the largest messaging and digital platform ecosystems in Korea and Japan, respectively, making Kaia a significant piece of regional digital infrastructure.

Klaytn previously participated in the Bank of Korea’s CBDC pilot ecosystem, and the Bank of Korea has continued to advance CBDC testing through initiatives such as Project Hangang.

By combining BTQ’s PQC technology with blockchain infrastructure tied to the Kakao and LINE ecosystems, the proof-of-concept is intended to establish a model that aligns institutional-grade security, blockchain scalability, and evolving regulatory requirements for digital money infrastructure.

QSSN as the Security Layer

The PQC security foundation for the initiative is BTQ’s Quantum Secure Stablecoin Settlement Network, or QSSN, a quantum-secure network architecture designed for stablecoin, tokenized deposit, payment, and digital asset infrastructure. QSSN is designed to protect critical issuer functions, including stablecoin issuance, burning, transfer authority, upgrade control, and administrative permissions, by integrating PQC-based signatures while maintaining existing user experience and operational workflows.

BTQ has previously announced that QSSN was highlighted in the U.S. Post-Quantum Financial Infrastructure Framework (“PQFIF”) as a model architecture for post-quantum digital money infrastructure. The Company has also positioned QSSN as a standards-oriented initiative advanced through QuINSA and aligned with emerging post-quantum financial infrastructure requirements.

Addressing the Harvest-Now, Decrypt-Later Risk

The timing of the proof-of-concept reflects the growing urgency surrounding the “Harvest-Now, Decrypt-Later” risk, in which attackers may collect encrypted financial data today and decrypt it later once sufficiently advanced quantum capabilities emerge. Global institutions are already accelerating post-quantum migration. The U.S. National Institute of Standards and Technology (“NIST”) has finalized its first set of post-quantum cryptography standards, including ML-DSA, ML-KEM, and SLH-DSA, while major technology companies and financial institutions continue to define their own post-quantum transition timelines.

BTQ’s QSSN addresses this challenge through a dual-signature design that allows existing ECDSA-based infrastructure to operate in parallel with NIST-aligned PQC signatures such as ML-DSA. This approach enables banks and payment infrastructure providers to begin a phased transition toward quantum-safe security without disrupting existing systems.

Expanding BTQ’s Korean Ecosystem

BTQ continues to expand its Korean ecosystem across digital assets, payments, banking infrastructure, and hardware-based security. In October 2025, BTQ announced that Finger had joined Danal as an early participant in BTQ’s QSSN pilot program, with the initiative expected to progress from proof-of-concept toward commercialization under QuINSA-aligned guidelines and broader industry frameworks such as PQFIF.

The commencement of the iM Bank proof-of-concept represents an important commercial signal for BTQ, indicating that demand for post-quantum migration among Korean financial institutions is beginning to move from policy discussion toward infrastructure-level implementation. As Korea advances both quantum technology policy and stablecoin-related regulatory discussions, BTQ believes QSSN is well positioned at the intersection of regulated finance, digital asset infrastructure, and post-quantum security.

About iM Bank
iM Bank is a South Korean commercial bank and a subsidiary of DGB Financial Group. Headquartered in Daegu, iM Bank presents itself as a financial companion for customers and traces its roots to Daegu Bank, which was established in 1967 as Korea’s first regional bank. For more information, please visit https://www.imbank.co.kr/

About Finger Inc. Group
Finger supplies and develops financial IT solutions to provide optimized money management strategies for employees and corporate customers. Providing “Smartphone Financial Services”, “Corporate Cash Management Services” for businesses, “Private Wealth Management Services” for private consumers.

Since the year 2000, Finger has accumulated a number of awards and patents regarding its businesses. Based on its Mobile Enterprise Application Platform(MEAP) Orchestra and its funds management system using screen-scrapping technologies, Finger was the first company in Korea to deliver a smartphone banking banking-service. For more information, please visit http://www.finger.co.kr/

About BTQ
BTQ Technologies Corp. (Nasdaq: BTQ | Cboe CA: BTQ) is a quantum technology company focused on accelerating the transition from classical networks to the quantum internet. Backed by a broad patent portfolio and deep technical expertise, BTQ is advancing a full-stack, neutral-atom quantum computing platform spanning hardware, middleware, and post-quantum security solutions for finance, telecommunications, logistics, life sciences, and defense.

Connect with BTQ: Website | LinkedIn | X/Twitter

ON BEHALF OF THE BOARD OF DIRECTORS
Olivier Roussy Newton
CEO, Chairman
Neither Cboe Canada nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Information

Certain statements herein contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the business plans of the Company, including with respect to its research partnerships, and anticipated markets in which the Company may be listing its common shares. Forward-looking statements or information often can be identified by the use of words such as “anticipate”, “intend”, “expect”, “plan” or “may” and the variations of these words are intended to identify forward-looking statements and information.

The Company has made numerous assumptions including among other things, assumptions about general business and economic conditions, the development of post-quantum algorithms and quantum vulnerabilities, and the quantum computing industry generally. The foregoing list of assumptions is not exhaustive.

Although management of the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements or information herein will prove to be accurate. Forward-looking statements and information are based on assumptions and involve known and unknown risks which may cause actual results to be materially different from any future results, expressed or implied, by such forward-looking statements or information. These factors include risks relating to: the availability of financing for the Company; business and economic conditions in the post-quantum and encryption computing industries generally; the speculative nature of the Company’s research and development programs; the supply and demand for labour and technological post-quantum and encryption technology; unanticipated events related to regulatory and licensing matters and environmental matters; changes in general economic conditions or conditions in the financial markets; changes in laws (including regulations respecting blockchains); risks related to the direct and indirect impact of COVID-19 including, but not limited to, its impact on general economic conditions, the ability to obtain financing as required, and causing potential delays to research and development activities; and other risk factors as detailed from time to time. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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SOURCE BTQ Technologies Corp.

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Zimmer Biomet to Present at the BofA Securities 2026 Health Care Conference

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WARSAW, Ind., May 6, 2026 /PRNewswire/ — Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH), a global medical technology leader, today announced that members of the Zimmer Biomet management team will participate in the Bank of America Securities Health Care Conference on Wednesday, May 13, 2026, with a fireside chat at 8:40 a.m. PT (11:40 a.m. ET).

A live audio webcast can be accessed via Zimmer Biomet’s Investor Relations website at https://investor.zimmerbiomet.com. It will be available for replay following the fireside chat.

About Zimmer Biomet 
Zimmer Biomet is a global medical technology leader with a comprehensive portfolio designed to maximize mobility and improve health. We seamlessly transform the patient experience through our innovative products and suite of integrated digital and robotic technologies that leverage data, data analytics and artificial intelligence.

With 90+ years of trusted leadership and proven expertise, Zimmer Biomet is positioned to deliver the highest quality solutions to patients and providers. Our legacy continues to come to life today through our progressive culture of evolution and innovation. 

For more information about our product portfolio, our operations in 25+ countries and sales in 100+ countries or about joining our team, visit www.zimmerbiomet.com or follow on LinkedIn at www.linkedin.com/company/zimmerbiomet or X at www.x.com/zimmerbiomet.

Contacts:

 

Media

Investors

Troy Kirkpatrick

David DeMartino

614-284-1926

646-531-6115

troy.kirkpatrick@zimmerbiomet.com

david.demartino@zimmerbiomet.com

Kirsten Fallon

Zach Weiner

781-779-5561

908-591-6955

kirsten.fallon@zimmerbiomet.com

zach.weiner@zimmerbiomet.com

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SOURCE Zimmer Biomet Holdings, Inc.

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NextLadder Ventures Announces Co-Founder Leadership Team, Investment Focus Areas For Over $1 Billion Initiative Empowering Americans with Personalized, Tech-Enabled Support Tools

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New senior hires from Google and The Collaborative Fund to lead product strategy and venture investing

Fund unveils first investment focus areas to catalyze new ‘Navigation Technology’ market, equipping Americans with cutting-edge tools to achieve economic security, opportunity and empowerment

ST. LOUIS, May 6, 2026 /PRNewswire/ — NextLadder Ventures, a new fund backed by more than $1 billion in capital, today announced its priority investment areas for building a new market for “Navigation Technology” (NavTech) — tools that provide Americans with personalized solutions to navigate life’s challenges and achieve greater economic mobility — and announced its co-founding team, including two new senior hires.

The fund’s active focus areas are based on extensive research identifying the key experiences and high-stakes decision points that have an outsized impact on American families’ economic mobility. Launched investment areas include financial health, career navigation, and benefits and social services access, with further exploration underway around housing, legal aid, justice and re-entry, and mental and physical health. 

The organization is also today welcoming two senior leaders: Lauren Loktev is joining NextLadder as Managing Director of Investments and Brigitte Hoyer Gosselink as Managing Director of Product. Loktev was most recently a partner at the Collaborative Fund, where she backed several breakout companies in early child development, education, and sustainability. Gosselink comes to NextLadder from Google, where she led the company’s AI and social impact portfolio. They join a growing team which has deep expertise at the intersection of economic mobility, technology, public policy, and philanthropy.

NextLadder’s Focus Areas for Investment

Today, the fund is kicking off a plan to deploy $1 billion over the next seven years to accelerate the design, development, and deployment of accessible NavTech tools that aim to help families more successfully navigate the major life experiences that determine whether they get ahead or fall behind. As NextLadder’s inaugural frontier AI lab partner, Anthropic is supporting the build-out of the organization’s AI-native capabilities and is offering technical assistance to NextLadder’s portfolio organizations. 

As an increasing proportion of Americans across income levels find themselves overextended and overwhelmed, NavTech tools are designed to help individuals and families understand their options, connect to information and resources, and take action to recover from a setback or take advantage of an opportunity and reclaim their economic futures.

“Life is getting harder, and too many Americans are stuck facing some of the most complex and consequential moments of their lives without much support,” said Ryan Rippel, CEO of NextLadder Ventures. “Every day, millions in this country face fork-in-the-road decisions that have major implications on whether they climb up the economic ladder or fall farther behind. AI has understandably intensified many Americans’ anxieties about their jobs and their security in the economy. But these technologies are now also making it possible to deliver highly personalized, affordable tools to meet the needs of tens of millions of Americans in a way that has never been practically achievable or financially viable before. With NavTech tools, built for the reality of families’ everyday experiences, we can empower Americans to overcome setbacks, navigate life’s toughest financial decisions, and build more secure futures.”

NavTech tools, built with the needs of individuals, families, and trusted community partners at the center of their design, have the potential to ease burdens most acutely faced by 90 million Americans who live in households that have difficulty in paying for usual home expenses, and turbocharge the capacity of the 1.6 million community workers in non-profit or local, state, and federal government roles who serve them. This growing category of digital technologies includes tools that help families access opportunities such as personalized financial advice and legal aid, get connected with available resources and programs, and manage unexpected hurdles like losing a job or facing an eviction – while freeing social workers and service providers to spend more time on people and less time on red tape and paperwork.

The fund’s active investment areas include:

Financial Health: Developing highly personalized, AI-powered financial health tools that can provide tailored, sustained counsel to help users build savings and protect and recover from financial shocks;
Career Navigation: Building tools to support career navigation, manage and support career transitions, and help workers, case managers, and employers identify pathways to living wage work — all designed to help people successfully find the right jobs for them.
Benefits & Social Services Access: Helping eligible Americans seamlessly identify and enroll in all the benefits and social services available to them, particularly those that support career navigation and transitions, help them navigate critical life moments, and achieve stability toward economic opportunity.

NextLadder is exploring additional focus areas, including housing, legal aid, justice and re-entry, caregiving, and mental and physical health. More on the organization’s vision of these focus areas is available HERE.

In addition to backing direct NavTech solutions, NextLadder is investing in the developers, partners, and standards required to build a durable, self-sustaining market. Across all focus areas, the fund is prioritizing efforts to ensure NavTech tools are reliable, protect users’ privacy, and are trusted by the families who depend on them.

NextLadder’s Co-Founder Leadership Team

NextLadder’s five co-founders will be CEO Ryan Rippel, Chief Strategy and Operations Officer Rhett Dornbach-Bender, Chief of Staff Callie Schwartz, and the two new senior hires: Managing Director of Investments Lauren Loktev and Managing Director of Product Brigitte Hoyer Gosselink, rounding out the fund’s expertise in investing, technology, and impact.

“We’re thrilled to welcome Lauren and Brigitte to the NextLadder team,” said Rippel. “Brigitte has spent her career proving that when applied purposefully, AI and technology can deliver meaningful benefits for communities, and she’ll set the bar for what NavTech tools can deliver for American families today and in the years to come. And with her deep experience backing mission-driven founders, Lauren is the perfect leader to build our venture practice from the ground up and accelerate the growth of the NavTech field. With this team in place, we’re positioned to make NavTech tools easier to build, fund, and access so they reach the people who need them most.”

Loktev brings 15 years of venture capital experience investing at the intersection of for-profit and for-good. Most recently at Collaborative Fund, she backed several companies to significant scale and launched Collab+Sesame, a first-of-its-kind thematic seed fund in partnership with Sesame Workshop focused on early childhood education. At NextLadder, she will build and lead the fund’s venture practice, sourcing and scaling investments in the founders building the next generation of NavTech tools.

“We have a once in a generation opportunity to help steer AI solutions toward those who need them most,” said Loktev. “Many amazing, accomplished founders see this too, and they are on a mission to build scalable, transformative businesses in the critical verticals that help people navigate life-changing moments. I couldn’t be more excited to join NextLadder and to support the most inspiring leaders building this market from the ground up. Thanks to our unique, long-term mandate, we can be creative and flexible in investing across stage and check size to partner with the entrepreneurs and leaders we believe will change the world.”

Prior to her role at NextLadder, Gosselink spent over a decade at Google in several roles including Director of AI and Social Impact, directing more than $500 million in funding for organizations applying AI to address challenges including crisis response, education, and economic opportunity. At NextLadder, she will lead AI and product strategy across the fund’s portfolio, backing solutions and setting market-wide standards for how NavTech tools are designed, evaluated, and improved over time.

“If we collectively harness the AI transformation strategically and purposefully, we can transform the way Americans are empowered to access greater economic mobility,” said Gosselink. “We believe that people-centered products, combined with shifts in the market and the services available to families, can fundamentally reshape how millions of Americans navigate critical moments and achieve prosperity on their own terms.”

To request interviews from the NextLadder Ventures leadership team, contact media@nextladder.com.

About NextLadder Ventures

NextLadder Ventures is a time-bound venture with one goal: empower millions of Americans to reach their potential by 2040. Backed by over $1 billion in capital, the organization invests in breakthrough technologies that remove barriers to economic success and put people in control of their futures. NextLadder Ventures is trailblazing a new market for tech-enabled Navigation Technology tools that help people access the resources they need to navigate pivotal moments — offering flexible, risk-tolerant capital to entrepreneurs building these transformative tools today, while creating a pipeline of tech, talent, and capital for the long run.

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SOURCE NextLadder Ventures

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