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SS&C Technologies Releases Q4 and Full Year 2024 Earnings Results

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Q4 2024 GAAP revenue $1,529.7 million, up 8.4%, Fully Diluted GAAP Earnings Per Share $0.98, up 27.3%

Record Adjusted revenue $1,530.7 million, up 8.4%, Adjusted Diluted Earnings Per Share $1.58, up 25.4%

WINDSOR, Conn., Feb. 6, 2025 /PRNewswire/ — SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), a global provider of investment, financial and healthcare software and software-enabled services, today announced its financial results for the fourth quarter and full year ended December 31, 2024.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions, except per share data):

2024

2023

Change

2024

2023

Change

GAAP Results

Revenue

$1,529.7

$1,411.6

8.4 %

$5,882.0

$5,502.8

6.9 %

Operating income

357.9

334.2

7.1 %

1,343.5

1,208.9

11.1 %

Operating income margin

23.4 %

23.7 %

-30 bps

22.8 %

22.0 %

80 bps

Diluted earnings per share attributable to
SS&C

$0.98

$0.77

27.3 %

$3.00

$2.39

25.5 %

Net income attributable to SS&C

248.2

194.4

27.7 %

760.5

607.1

25.3 %

Adjusted Non-GAAP Results (defined in Notes 1 – 4 below)

Adjusted revenue

$1,530.7

$1,412.3

8.4 %

$5,885.7

$5,505.8

6.9 %

Adjusted operating income attributable to
SS&C

581.9

545.2

6.7 %

2,212.4

2,041.4

8.4 %

Adjusted operating income margin

38.0 %

38.6 %

-60 bps

37.6 %

37.1 %

50 bps

Adjusted diluted earnings per share
attributable to SS&C (1)

$1.58

$1.26

25.4 %

$5.41

$4.65

16.3 %

Adjusted consolidated EBITDA attributable
to SS&C

599.1

562.5

6.5 %

2,281.0

2,107.7

8.2 %

Adjusted consolidated EBITDA margin

39.1 %

39.8 %

-70 bps

38.8 %

38.3 %

50 bps

(1) Reflects non-GAAP tax rates of 15.1% and 23.1% for the three and twelve months ended December 31, 2024, respectively. See Note 4 for more information.

Fourth Quarter and Full Year 2024 Highlights:

Q4 2024 GAAP Revenue growth and Adjusted Revenue growth were 8.4 percent.Q4 Adjusted Organic Revenue Growth was 7.0 percent, Financial Services Recurring Revenue Growth was 7.4 percent.SS&C generated net cash from operating activities of $1,388.6 million for the twelve months ended December 31, 2024, up 14.3 percent compared to the same period in 2023.Q4 2024 we bought back 4.9 million shares for $365.7 million, at an average price of $74.46 per share.We paid down $195.0 million in debt in Q4 2024, bringing our net leverage ratio to 2.89 times consolidated EBITDA attributable to SS&C.SS&C reported GAAP net income attributable to SS&C of $248.2 million for Q4 2024, up 27.7 percent and adjusted consolidated EBITDA attributable to SS&C of $599.1 million for Q4 2024, up 6.5 percent.GAAP operating income margin for Q4 2024 was 23.4 percent. Adjusted consolidated EBITDA margin for Q4 2024 was 39.1 percent.

“SS&C ended 2024 with 7.0% Q4 organic revenue growth and record adjusted consolidated EBITDA of $599 million,” says Bill Stone, Chairman and Chief Executive Officer. “We continue to add to our capabilities, integrate our offerings, and unlock cross-sell benefits. Our wins—including lift-outs, geographic expansion, the Battea and FPS Trust acquisitions—span across the world and excite us about 2025.”

Operating Cash Flow

SS&C generated net cash from operating activities of $1,388.6 million for the twelve months ended December 31, 2024, compared to $1,215.1 million for the same period in 2023, a 14.3% increase.  SS&C ended the fourth quarter with $567.1 million in cash and cash equivalents and $7,048.7 million in gross debt.  SS&C’s net debt balance as defined in our credit agreement, which excludes cash and cash equivalents of $155.2 million held at DomaniRx, LLC was $6,636.8 million as of December 31, 2024.  SS&C’s consolidated net leverage ratio as defined in our credit agreement stood at 2.89 times consolidated EBITDA attributable to SS&C as of December 31, 2024. SS&C’s net secured leverage ratio stood at 1.69 times consolidated EBITDA attributable to SS&C as of December 31, 2024.

Guidance

Q1 2025

FY 2025

Adjusted Revenue ($M)

$1,474.0 – $1,514.0

$6,085.0 – $6,245.0

Adjusted Net Income attributable to SS&C
($M)

$348.0 – $364.0

$1,431.0 – $1,531.0

Interest Expense1 ($M)

$104.0 – $106.0

$408.0 – $418.0

Adjusted Diluted Earnings per Share
attributable to SS&C

$1.37 – $1.43

$5.64 – $5.96

Cash from Operating Activities ($M)

–

$1,448.0 – $1,548.0

Capital Expenditures (% of revenue)

–

4.1% – 4.5%

Diluted Shares (M)

254.6 – 255.6

253.7 – 256.7

Effective Income Tax Rate (%)

23.0% – 25.0%

23.0% – 25.0%

1Interest expense is net of deferred financing cost amortization and original issue discount

SS&C does not provide reconciliations of guidance for Adjusted Revenues and Adjusted Net Income to comparable GAAP measures, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K.  SS&C is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures.  These items include acquisition transactions and integration, foreign exchange rate changes, as well as other non-cash and other adjustments as defined under the Company’s Credit agreement, that are difficult to predict in advance in order to include in a GAAP estimate.  The unavailable information could have a significant impact on Q1 2025 and FY 2025 GAAP financial results.

Non-GAAP Financial Measures

Adjusted revenue, adjusted operating income, adjusted consolidated EBITDA, adjusted net income and adjusted diluted earnings per share are non-GAAP measures.  See the accompanying notes for the reconciliations and definitions for each of these non-GAAP measures and the reasons our management believes these measures provide useful information to investors regarding our financial condition and results of operations.

Earnings Call and Press Release

SS&C’s fourth quarter and full year 2024 earnings call will take place at 5:00 p.m. eastern time today, February 6, 2025.  The call will discuss fourth quarter and full year 2024 results and 2025 guidance.  Interested parties may dial 888-210-4650 (US and Canada) or 646-960-0327 (International), and request the “SS&C Technologies Fourth Quarter and Full Year 2024 Earnings Conference Call”; conference ID #4673675.  In connection with the earnings call, a presentation will be available on SS&C’s website at www.ssctech.com.  The call will be available for replay via the webcast on SS&C’s website; access: https://investor.ssctech.com/financials/quarterly-results/default.aspx

Certain information contained in this press release relating to, among other things, the Company’s financial guidance for the first quarter and full year of 2025 constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include statements concerning plans, objectives, goals, strategies, expectations, intentions, projections, developments, future events, performance, underlying assumptions, and other statements that are other than statements of historical facts. Without limiting the foregoing, the words “believes”, “anticipates”, “plans”, “expects”, “estimates”, “projects”, “forecasts”, “may”, “assume”, “intend”, “will”, “continue”, “opportunity”, “predict”, “potential”, “future”, “guarantee”, “likely”, “target”, “indicate”, “would”, “could” and “should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words.  Such statements reflect management’s best judgment based on factors currently known but are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated.  Such risks and uncertainties include, but are not limited to, the state of the economy and the financial services industry and other industries in which the Company’s clients operate, the Company’s ability to realize anticipated benefits from its acquisitions, including DST Systems, Inc., the effect of customer consolidation on demand for the Company’s products and services, the increasing focus of the Company’s business on the hedge fund industry, the variability of revenue as a result of activity in the securities markets, the ability to retain and attract clients, fluctuations in customer demand for the Company’s products and services, the intensity of competition with respect to the Company’s products and services, the exposure to litigation and other claims, terrorist activities and other catastrophic events, disruptions, attacks or failures affecting the Company’s software-enabled services, risks associated with the Company’s foreign operations, privacy concerns relating to the collection and storage of personal information, evolving regulations and increased scrutiny from regulators, the Company’s ability to protect intellectual property assets and litigation regarding intellectual property rights, delays in product development, investment decisions concerning cash balances, regulatory and tax risks, risks associated with the Company’s joint ventures, changes in accounting standards, risks related to the Company’s substantial indebtedness, the market price of the Company’s stock prevailing from time to time, and the risks discussed in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are on file with the Securities and Exchange Commission and can also be accessed on our website.  Forward-looking statements speak only as of the date on which they are made and, except to the extent required by applicable securities laws, we undertake no obligation to update or revise any forward-looking statements.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. More than 22,000 financial services and healthcare organizations, from the world’s largest companies to small and mid-market firms, rely on SS&C for expertise, scale, and technology.

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SS&C Technologies Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income

(in millions, except per share data)

(unaudited)

Three Months Ended December 31,

Twelve Months Ended December 31,

2024

2023

2024

2023

Revenues:

Software-enabled services

$

1,254.0

$

1,145.5

$

4,840.3

$

4,488.3

License, maintenance and related

275.7

266.1

1,041.7

1,014.5

Total revenues

1,529.7

1,411.6

5,882.0

5,502.8

Cost of revenues:

Software-enabled services

669.1

594.6

2,618.8

2,472.0

License, maintenance and related

106.7

97.7

399.6

379.0

Total cost of revenues

775.8

692.3

3,018.4

2,851.0

Gross profit

753.9

719.3

2,863.6

2,651.8

Operating expenses:

Selling and marketing

156.6

139.3

584.2

550.9

Research and development

136.8

118.3

517.7

473.8

General and administrative

102.6

127.5

418.2

418.2

Total operating expenses

396.0

385.1

1,520.1

1,442.9

Operating income

357.9

334.2

1,343.5

1,208.9

Interest expense, net

(113.0)

(119.3)

(451.9)

(469.8)

Other (expense) income, net

(7.6)

5.4

8.9

20.7

Equity in earnings of unconsolidated affiliates, net

3.7

57.4

24.4

100.0

Loss on extinguishment of debt

(1.1)

(1.0)

(31.2)

(2.1)

Income before income taxes

239.9

276.7

893.7

857.7

(Benefit) provision for income taxes

(8.5)

81.8

132.0

249.1

Net income

248.4

194.9

761.7

608.6

Net income attributable to noncontrolling interest

(0.2)

(0.5)

(1.2)

(1.5)

Net income attributable to SS&C common stockholders

$

248.2

$

194.4

$

760.5

$

607.1

Basic earnings per share attributable to SS&C common stockholders

$

1.01

$

0.79

$

3.09

$

2.45

Diluted earnings per share attributable to SS&C common stockholders

$

0.98

$

0.77

$

3.00

$

2.39

Basic weighted-average number of common shares outstanding

246.0

246.7

246.4

248.3

Diluted weighted-average number of common and common equivalent
shares outstanding

254.5

252.1

253.8

254.5

Net income

$

248.4

$

194.9

$

761.7

$

608.6

Other comprehensive (loss) income, net of tax:

Foreign currency exchange translation adjustment

(229.2)

129.3

(115.1)

124.5

Change in defined benefit pension obligation

0.1

(0.7)

0.2

(0.7)

Total other comprehensive (loss) income, net of tax

(229.1)

128.6

(114.9)

123.8

Comprehensive income

19.3

323.5

646.8

732.4

Comprehensive income attributable to noncontrolling interest

(0.2)

(0.5)

(1.2)

(1.5)

Comprehensive income attributable to SS&C common stockholders

$

19.1

$

323.0

$

645.6

$

730.9

 

SS&C Technologies Holdings, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in millions)

(unaudited)

December 31,

December 31,

2024

2023

Assets

Current assets:

Cash and cash equivalents

$

567.1

$

432.2

Funds receivable and funds held on behalf of clients

3,162.2

2,615.6

Accounts receivable, net

902.0

799.4

Contract asset

47.6

36.1

Prepaid expenses and other current assets

179.8

165.8

Restricted cash

3.7

2.4

Total current assets

4,862.4

4,051.5

Property, plant and equipment, net

299.6

315.3

Operating lease right-of-use assets

190.6

221.4

Investments

177.4

184.7

Unconsolidated affiliates

328.4

345.2

Contract asset

110.2

99.7

Goodwill

9,218.1

8,969.5

Intangible and other assets, net

3,858.0

3,915.2

Total assets

$

19,044.7

$

18,102.5

Liabilities and Equity

Current liabilities:

Current portion of long-term debt

$

20.0

$

51.5

Client funds obligations

3,162.2

2,615.6

Accounts payable

70.2

80.3

Income taxes payable

23.0

22.3

Accrued employee compensation and benefits

311.5

270.2

Interest payable

31.6

29.4

Other accrued expenses

249.7

232.3

Deferred revenue

486.1

470.3

Total current liabilities

4,354.3

3,771.9

Long-term debt, net of current portion

6,989.6

6,668.5

Operating lease liabilities

175.1

199.1

Other long-term liabilities

191.1

248.7

Deferred income taxes

725.5

816.6

Total liabilities

12,435.6

11,704.8

SS&C stockholders’ equity

6,534.8

6,339.6

Noncontrolling interest

74.3

58.1

Total equity

6,609.1

6,397.7

Total liabilities and equity

$

19,044.7

$

18,102.5

 

SS&C Technologies Holdings, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in millions)

(unaudited)

Twelve Months Ended December 31,

2024

2023

Cash flow from operating activities:

Net income

$

761.7

$

608.6

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

Depreciation and amortization

680.1

670.4

Equity in earnings of unconsolidated affiliates, net

(24.4)

(100.0)

Distributions received from unconsolidated affiliates

13.1

21.2

Stock-based compensation expense

203.3

159.5

Net gains on investments

(1.7)

(2.2)

Amortization and write-offs of loan origination costs and original issue discounts

8.4

13.5

Loss on extinguishment of debt

31.2

2.1

Loss on sale or disposition of property and equipment

1.6

11.7

Deferred income taxes

(115.4)

(82.9)

Provision for credit losses

15.4

11.4

Changes in operating assets and liabilities, excluding effects from acquisitions:

Accounts receivable

(119.1)

(23.1)

Prepaid expenses and other assets

(20.7)

(2.3)

Contract assets

(25.1)

22.5

Accounts payable

(10.7)

33.0

Accrued expenses and other liabilities

(16.5)

(106.0)

Income taxes prepaid and payable

(13.8)

(38.2)

Deferred revenue

21.2

15.9

Net cash provided by operating activities

1,388.6

1,215.1

Cash flow from investing activities:

Cash paid for business acquisitions, net of cash acquired and asset acquisitions

(647.1)

(34.1)

Additions to property and equipment

(61.4)

(56.6)

Proceeds from sale of property and equipment

4.8

0.1

Additions to capitalized software

(194.3)

(194.9)

Investments in securities

(0.1)

(0.6)

Proceeds from sales / maturities of investments

6.9

8.0

Distributions received from (contributions to) unconsolidated affiliates

25.3

(0.3)

Collection of other non-current receivables

10.2

10.0

Net cash used in investing activities

(855.7)

(268.4)

Cash flow from financing activities:

Cash received from debt borrowings, net of original issue discount

5,545.0

375.0

Repayments of debt

(5,255.1)

(749.7)

Payment of deferred financing fees

(39.4)

—

Net increase in client funds obligations

235.8

1,669.7

Proceeds from exercise of stock options

355.1

115.4

Withholding taxes paid related to equity award net share settlement

(26.2)

(5.1)

Purchases of common stock for treasury

(737.5)

(471.6)

Dividends paid on common stock

(244.9)

(220.9)

Proceeds from noncontrolling interests

14.9

—

Net cash (used in) provided by financing activities

(152.3)

712.8

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

(8.7)

1.5

Net increase in cash, cash equivalents and restricted cash

371.9

1,661.0

Cash, cash equivalents and restricted cash, beginning of period

2,998.6

1,337.6

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

$

3,370.5

$

2,998.6

Reconciliation of cash, cash equivalents and restricted cash and cash equivalents:

Cash and cash equivalents

$

567.1

$

432.2

Restricted cash and cash equivalents

3.7

2.4

Restricted cash and cash equivalents included in funds receivable and funds held on behalf of
clients

2,799.7

2,564.0

$

3,370.5

$

2,998.6

SS&C Technologies Holdings, Inc. and Subsidiaries
Disclosures Relating to Non-GAAP Financial Measures

Note 1. Reconciliation of Revenues to Adjusted Revenues

Adjusted revenues represents revenues adjusted to include a) amounts that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition and b) amounts that would have been recognized if not for adjustments to deferred revenue and retained earnings related to the adoption of ASC 606.  Adjusted revenues is presented because we use this measure to evaluate performance of our business against prior periods and believe it is a useful indicator of the underlying performance of our business.  Adjusted revenues is not a recognized term under generally accepted accounting principles (“GAAP”).  Adjusted revenues does not represent revenues, as that term is defined under GAAP, and should not be considered as an alternative to revenues as an indicator of our operating performance.  Adjusted revenues as presented herein is not necessarily comparable to similarly titled measures presented by other companies.  Below is a reconciliation of adjusted revenues to revenues, the GAAP measure we believe to be most directly comparable to adjusted revenues.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

2024

2023

2024

2023

Revenues

$

1,529.7

$

1,411.6

$

5,882.0

$

5,502.8

ASC 606 adoption impact

—

(0.9)

(2.2)

(3.4)

Purchase accounting adjustments impact on revenue

1.0

1.6

5.9

6.4

Adjusted revenues

$

1,530.7

$

1,412.3

$

5,885.7

$

5,505.8

The following is a breakdown of software-enabled services and license, maintenance and related revenues and adjusted software-enabled services and license, maintenance and related revenues.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

2024

2023

2024

2023

Software-enabled services

$

1,254.0

$

1,145.5

$

4,840.3

$

4,488.3

License, maintenance and related

275.7

266.1

1,041.7

1,014.5

Total revenues

$

1,529.7

$

1,411.6

$

5,882.0

$

5,502.8

Software-enabled services

$

1,254.9

$

1,146.2

$

4,844.0

$

4,491.6

License, maintenance and related

275.8

266.1

1,041.7

1,014.2

Total adjusted revenues

$

1,530.7

$

1,412.3

$

5,885.7

$

5,505.8

Note 2. Reconciliation of Operating Income to Adjusted Operating Income

Adjusted operating income represents operating income adjusted for amortization of intangible assets, stock-based compensation, purchase accounting adjustments for deferred revenue and related costs, ASC 606 adoption impact and other expenses.  Adjusted operating income is presented because we use this measure to evaluate performance of our business and believe it is a useful indicator of our underlying performance.  Adjusted operating income is not a recognized term under GAAP.  Adjusted operating income does not represent operating income, as that term is defined under GAAP, and should not be considered as an alternative to operating income as an indicator of our operating performance.  Adjusted operating income as presented herein is not necessarily comparable to similarly titled measures by other companies.  The following is a reconciliation between adjusted operating income and operating income, the GAAP measure we believe to be most directly comparable to adjusted operating income.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

2024

2023

2024

2023

Operating income

$

357.9

$

334.2

$

1,343.5

$

1,208.9

Amortization of intangible assets

157.5

151.3

606.6

596.6

Stock-based compensation

55.4

41.9

203.3

159.4

Purchase accounting adjustments (1)

2.1

3.8

11.6

15.8

ASC 606 adoption impact

0.1

(0.8)

(1.9)

(3.1)

Acquisition related (2)

0.5

1.2

3.2

9.0

Facilities and workforce restructuring

8.0

14.3

41.6

56.8

Other (3)

1.4

0.1

8.6

0.9

Adjusted operating income

$

582.9

$

546.0

$

2,216.5

$

2,044.3

Adjusted operating income attributable to noncontrolling interest (4)

(1.0)

(0.8)

(4.1)

(2.9)

Adjusted operating income attributable to SS&C common
stockholders

$

581.9

$

545.2

$

2,212.4

$

2,041.4

(1)

Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition, (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to decrease depreciation expense by the amount that would not have been recognized if property, plant and equipment were not adjusted to fair value at the date of acquisition.

(2)

Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period acquisitions.

(3)

Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance.

(4)

In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and primary beneficiary.  As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted operating income attributable to noncontrolling interest represents adjusted operating income based on the ownership interest retained by the respective noncontrolling parties.

Note 3. Reconciliation of Net Income to EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA

EBITDA represents net income before interest expense, income taxes, depreciation and amortization.  Consolidated EBITDA, defined under our Credit Agreement entered into in April 2018, as amended, is used in calculating covenant compliance, and is EBITDA adjusted for certain items.  Consolidated EBITDA is calculated by subtracting from or adding to EBITDA items of income or expense described below.  Adjusted Consolidated EBITDA is calculated by subtracting acquired EBITDA (as defined below) from Consolidated EBITDA. EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA are presented because we use these measures to evaluate performance of our business and believe them to be useful indicators of an entity’s debt capacity and its ability to service debt.  EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA are not recognized terms under GAAP and should not be considered in isolation or as alternatives to operating income, net income or cash flows from operating activities as indicators of our operating performance.  These measures are not necessarily comparable to similarly titled measures by other companies.  The following is a reconciliation of EBITDA, Consolidated EBITDA and Adjusted Consolidated EBITDA to net income.

Three Months Ended
December 31,

Twelve Months Ended
December 31,

(in millions)

2024

2023

2024

2023

Net income

$

248.4

$

194.9

$

761.7

$

608.6

Interest expense, net

113.0

119.3

451.9

469.8

Provision for income taxes

(8.5)

81.8

132.0

249.1

Depreciation and amortization

175.8

170.0

680.1

670.4

EBITDA

528.7

566.0

2,025.7

1,997.9

Stock-based compensation

55.4

41.9

203.3

159.4

Acquired EBITDA and cost savings (1)

—

—

19.4

—

Loss on extinguishment of debt

1.1

1.0

31.2

2.1

Equity in earnings of unconsolidated affiliates, net

(3.7)

(57.4)

(24.4)

(100.0)

Purchase accounting adjustments (2)

1.1

2.6

6.8

9.3

ASC 606 adoption impact

0.1

(0.8)

(1.9)

(3.1)

Foreign currency translation losses (gains)

6.6

(3.9)

8.2

(0.2)

Investment gains (3)

(2.3)

(5.3)

(19.6)

(19.0)

Facilities and workforce restructuring

7.8

14.3

41.4

56.8

Acquisition related (4)

0.6

1.2

3.3

(0.1)

Other (5)

4.7

3.7

11.1

7.5

Consolidated EBITDA

$

600.1

$

563.3

$

2,304.5

$

2,110.6

Acquired EBITDA and cost savings (1)

—

—

(19.4)

—

Adjusted Consolidated EBITDA

$

600.1

$

563.3

$

2,285.1

$

2,110.6

Adjusted Consolidated EBITDA attributable to noncontrolling interest (6)

(1.0)

(0.8)

(4.1)

(2.9)

Adjusted Consolidated EBITDA attributable to SS&C common
stockholders

$

599.1

$

562.5

$

2,281.0

$

2,107.7

(1)

Acquired EBITDA reflects the EBITDA impact of significant businesses that were acquired during the period as if the acquisition occurred at the beginning of the period, as well as cost savings enacted in connection with acquisitions.

(2)

Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisitions (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to increase or decrease rent expense by the amount that would have been recognized if lease obligations were not adjusted to fair value at the date of acquisitions.

(3)

Investment gains includes unrealized fair value adjustments of investments and dividend income received on investments.

(4)

Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period acquisitions.

(5)

Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance. 

(6)

In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and primary beneficiary.  As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted Consolidated EBITDA attributable to noncontrolling interest represents adjusted Consolidated EBITDA based on the ownership interest retained by the respective noncontrolling parties.

Note 4. Reconciliation of Net Income to Adjusted Net Income and Diluted Earnings Per Share Attributable to SS&C to Adjusted Diluted Earnings Per Share Attributable to SS&C

Adjusted net income and adjusted diluted earnings per share attributable to SS&C represent net income and earnings per share attributable to SS&C before amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments and other items.  We consider adjusted net income and adjusted diluted earnings per share attributable to SS&C to be important to management and investors because they represent our operational performance exclusive of the effects of amortization of intangible assets and deferred financing costs, stock-based compensation, purchase accounting adjustments, loss on extinguishment of debt and other items, that are not operational in nature or comparable to those of our competitors.  Adjusted net income and adjusted diluted earnings per share are not recognized terms under GAAP.  Adjusted net income and adjusted diluted earnings per share do not represent net income or diluted earnings per share, as those terms are defined under GAAP, and should not be considered as alternatives to net income or diluted earnings per share as indicators of our operating performance.  Adjusted net income and adjusted diluted earnings per share attributable to SS&C as presented herein are not necessarily comparable to similarly titled measures presented by other companies.  Below is a reconciliation of adjusted net income and adjusted diluted earnings per share attributable to SS&C to net income and diluted earnings per share attributable to SS&C, the GAAP measures we believe to be most directly comparable to adjusted net income and adjusted diluted earnings per share.

Three Months Ended December 31,

Twelve Months Ended
December 31,

(in millions, except per share data)

2024

2023

2024

2023

GAAP – Net income

$

248.4

$

194.9

$

761.7

$

608.6

Amortization of intangible assets

157.5

151.3

606.6

596.6

Amortization of deferred financing costs and original issue discount

1.7

3.3

8.4

13.5

Stock-based compensation

55.4

41.9

203.3

159.4

Loss on extinguishment of debt

1.1

1.0

31.2

2.1

Purchase accounting adjustments (1)

2.1

3.8

11.6

15.8

ASC 606 adoption impact

0.1

(0.8)

(1.9)

(3.1)

Equity in earnings of unconsolidated affiliates, net

(3.7)

(57.4)

(24.4)

(100.0)

Foreign currency translation losses (gains)

6.6

(3.9)

8.2

(0.2)

Investment losses (gains) (2)

0.9

(3.1)

(1.6)

(2.2)

Facilities and workforce restructuring

7.8

14.3

41.4

56.8

Acquisition related (3)

0.6

1.2

3.3

(0.1)

Other (4)

4.9

3.9

11.2

8.6

Income tax effect (5)

(80.2)

(30.7)

(281.9)

(168.2)

Adjusted net income

$

403.2

$

319.7

$

1,377.1

$

1,187.6

Adjusted net income attributable to noncontrolling interest (6)

(1.4)

(1.2)

(5.0)

(3.5)

Adjusted net income attributable to SS&C common stockholders

$

401.8

$

318.5

$

1,372.1

$

1,184.1

Adjusted diluted earnings per share attributable to SS&C common
stockholders

$

1.58

$

1.26

$

5.41

$

4.65

GAAP diluted earnings per share attributable to SS&C common
stockholders

$

0.98

$

0.77

$

3.00

$

2.39

Diluted weighted-average shares outstanding

254.5

252.1

253.8

254.5

(1)

Purchase accounting adjustments include (a) an adjustment to increase revenues by the amount that would have been recognized if deferred revenue were not adjusted to fair value at the date of acquisition, (b) an adjustment to increase personnel and commissions expense by the amount that would have been recognized if prepaid commissions and deferred personnel costs were not adjusted to fair value at the date of the acquisitions and (c) an adjustment to decrease depreciation expense by the amount that would not have been recognized if property, plant and equipment were not adjusted to fair value at the date of acquisition.

(2)

Investment gains includes unrealized fair value adjustments of investments.  In prior periods, investment gains also included dividend income received on investments.  Prior period amounts have been revised for consistent presentation.

(3)

Acquisition related includes costs related to both current acquisitions and the resolution of pre-acquisition matters for prior period acquisitions.

(4)

Other includes additional expenses and income that are permitted to be excluded per the terms of our Credit Agreement from Consolidated EBITDA, a financial measure used in calculating our covenant compliance. 

(5)

For the twelve-month period ending December 31, 2024, we revised the effective tax rate used to adjust the provision for income taxes for the purpose of computing adjusted net income to 23.1%.  The change in this effective tax rate is attributable to increased deductions related to equity awards, implementation of prudent tax planning strategies, and the mix of earnings in our business jurisdictions.  As a result, an effective tax rate of 15.1% for the three months ended December 31, 2024 has been used to adjust the provision for income taxes for the purpose of computing adjusted net income. An effective tax rate of approximately 26% has been used to adjust the provision for income taxes for the purpose of computing adjusted net income for the three and twelve months ended December 31, 2023.

(6)

In 2021, we entered into a joint venture named DomaniRx, LLC in which we are the majority interest holder and primary beneficiary.  As such, we consolidate DomaniRx, LLC as a variable interest entity. Adjusted net income attributable to noncontrolling interest represents adjusted net income based on the ownership interest retained by the respective noncontrolling parties.

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SOURCE SS&C

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Improve Cell Line Stability From Cloning to GMP Manufacturing, Upcoming Webinar Hosted by Xtalks

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In this free webinar, learn how early cell-development decisions can affect cell line stability from cloning through GMP manufacturing. The featured speakers will discuss culture conditions, clone selection, cellular stress, recloning and genetic integrity monitoring, using iPSC development as a key application. Attendees will also explore how image-verified cloning and stronger upstream workflows can support reproducibility, scalable manufacturing and GMP-ready cell banks.

TORONTO, Oct. 21, 2026 /PRNewswire/ — Maintaining cell line stability becomes increasingly important as programs move from early clone development toward scale-up, cell banking and GMP manufacturing. Variability introduced during cloning, culture and expansion can affect genetic integrity, reproducibility and confidence in the cells being carried forward. Using iPSC development as a key application, this webinar will explore how early workflow decisions can help identify and reduce these risks before they impact downstream manufacturing.

The featured panelists will explore how decisions made during clone establishment and early cell development can influence long-term cellular stability. The discussion will examine how culture conditions, media and matrix selection and cellular stress can affect clonal outgrowth and contribute to genetic drift, as well as how stronger clone-selection and monitoring strategies can help reduce these risks.

Using iPSC development as a key application, the speakers will demonstrate how single-cell cloning, image-verified clone selection and automated clonal outgrowth monitoring can provide greater confidence and traceability during cell development. They will also explore when recloning may be appropriate, how genetic integrity can be monitored at key stages and how these approaches can support the creation of robust, well-characterized cell banks.

The session will connect early cell-development decisions with broader goals including reproducibility, scalability, genetic integrity, manufacturing readiness and the development of well-characterized GMP-ready cell banks, giving practical considerations for building more reliable workflows.

Attendees will gain insight into how to recognize sources of clonal variability, strengthen clone-selection strategies, maintain confidence in genetic stability and reduce the risk of carrying early development problems into later stages.

Register for this webinar to learn how cell line stability can be strengthened through clone selection, genetic integrity monitoring and cell-development strategies that support scalable manufacturing.

Join Noud Drummen, Field Application Scientist, Nova Biomedical; and Silvia Rosati, Research Scientist, Process Development Lab, Evotec (Modena), for the live webinar on Thursday, October 29, 2026, at 11am EDT (4pm CET / EU-Central).

For more information, or to register for this event, visit Improve Cell Line Stability From Cloning to GMP Manufacturing.

ABOUT XTALKS

Xtalks – The Life Science Community™ empowers professionals across pharma, biotech, medtech, healthcare and research with the trusted knowledge and collaborative insights that move the industry forward. Powered by Honeycomb Worldwide Inc., Xtalks delivers news, feature articles, webinars, podcasts, videos, expert interviews, curated job opportunities and more designed to support informed decision-making in a fast-evolving sector.

Every year, thousands of professionals rely on Xtalks for timely intelligence, peer perspectives and industry thought leadership. Join our life science community to stay informed, connected and ready for what’s next.

To learn more about Xtalks, visit www.xtalks.com
For information about working with Xtalks to host your webinar, visit https://xtalks.com/partner-with-us/

Contact:
Soumya Shashikumar
Tel: +1 (416) 977-6555 x371
Email: skumar@xtalks.com

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Lam Research Corporation Reports Financial Results for the Quarter Ended September 27, 2026

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FREMONT, Calif., Oct. 21, 2026 /PRNewswire/ — Lam Research Corporation (the “Company,” “Lam,” “Lam Research”) today announced financial results for the quarter ended September 27, 2026 (the “September 2026 quarter”).

Highlights for the September 2026 quarter were as follows:

Revenue of $8.22 billion.U.S. GAAP gross margin as a percent of revenue of 52.3%, U.S. GAAP operating margin as a percent of revenue of 40.0%, and U.S. GAAP diluted EPS of $2.19.Non-GAAP gross margin as a percent of revenue of 52.4%, non-GAAP operating margin as a percent of revenue of 40.2%, and non-GAAP diluted EPS of $2.20.

Key Financial Data for the Quarters Ended

September 27, 2026 and June 28, 2026

(in thousands, except per share data, percentages, and basis points)  

 

 

U.S. GAAP

September 2026

June 2026

Change Q/Q

Revenue

$       8,219,418

$       6,722,238

+22 %

Gross margin

52.3 %

51.7 %

+ 60 bps

Operating margin

40.0 %

37.4 %

+ 260 bps

Diluted EPS

$                2.19

$                1.81

+ 21 %

Non-GAAP

September 2026

June 2026

Change Q/Q

Revenue

$       8,219,418

$       6,722,238

+22 %

Gross margin

52.4 %

52.0 %

+ 40 bps

Operating margin

40.2 %

38.4 %

+ 180 bps

Diluted EPS

$                2.20

$                1.82

+ 21 %

U.S. GAAP Financial Results

For the September 2026 quarter, revenue was $8.22 billion, gross margin was $4.30 billion, or 52.3% of revenue, operating expenses were $1.02 billion, operating margin was 40.0%, and net income was $2.75 billion, or $2.19 per diluted share on a U.S. GAAP basis. This compares to revenue of $6.72 billion, gross margin of $3.48 billion, or 51.7% of revenue, operating expenses of $965.3 million, operating margin of 37.4%, and net income of $2.28 billion, or $1.81 per diluted share, for the quarter ended June 28, 2026 (the “June 2026 quarter”).

Non-GAAP Financial Results

For the September 2026 quarter, non-GAAP gross margin was $4.31 billion, or 52.4% of revenue, non-GAAP operating expenses were $1.00 billion, non-GAAP operating margin was 40.2%, and non-GAAP net income was $2.77 billion, or $2.20 per diluted share. This compares to non-GAAP gross margin of $3.50 billion, or 52.0% of revenue, non-GAAP operating expenses of $916.4 million, non-GAAP operating margin of 38.4%, and non-GAAP net income of $2.28 billion, or $1.82 per diluted share, for the June 2026 quarter.

“With AI driving higher semiconductor demand and greater device complexity, our focus on operational execution helped Lam deliver record revenue, profit, and earnings per share in the September quarter,” said Tim Archer, Lam Research’s President and Chief Executive Officer. “Our strategic investments in technology inflections and manufacturing capacity are paying off, strengthening our ability to outgrow the wafer fabrication equipment market as the industry expands.”

Balance Sheet and Cash Flow Results

Cash, cash equivalents, and restricted cash balances increased to $7.45 billion at the end of the September 2026 quarter compared to $5.60 billion at the end of the June 2026 quarter. The increase was primarily the result of cash generated from operating activities during the quarter partially offset by cash deployed for capital return activities and capital expenditures.

Deferred revenue at the end of the September 2026 quarter increased to $2.66 billion compared to $2.43 billion as of the end of the June 2026 quarter. Lam’s deferred revenue balance does not include shipments to customers in Japan, to whom control does not transfer until customer acceptance. Shipments to customers in Japan are classified as inventory at cost until the time of acceptance. The estimated future revenue from shipments to customers in Japan was approximately $468.3 million as of September 27, 2026 and $490.2 million as of June 28, 2026.

Revenue

The geographic distribution of revenue during the September 2026 quarter is shown in the following table:

Region

Revenue

China

35 %

Korea

20 %

Taiwan

18 %

Japan

9 %

United States

8 %

Southeast Asia

6 %

Europe

4 %

The following table presents revenue disaggregated between systems and customer support-related revenue:

Three Months Ended

September 27,
2026

June 28,
2026

September 28,
2025

(in thousands)

Systems revenue

$         5,732,907

$         4,249,848

$         3,547,565

Customer support-related revenue and other

2,486,511

2,472,390

1,776,608

$         8,219,418

$         6,722,238

$         5,324,173

Systems revenue includes sales of new leading-edge equipment in deposition, etch, clean, and other wafer fabrication markets.

Customer support-related revenue includes sales of customer services, spares, upgrades, and non-leading-edge equipment from our Reliant® product line.

Outlook

For the quarter ending December 27, 2026, Lam is providing the following guidance: 

U.S. GAAP

Reconciling Items

Non-GAAP

Revenue

$8.60 Billion

+/-

$400 Million

—

$8.60 Billion

+/-

$400 Million

Gross margin

52.5 %

+/-

1 %

$  2.7

Million

52.5 %

+/-

1 %

Operating margin

40.5 %

+/-

1 %

$  3.0

Million

40.5 %

+/-

1 %

Net income per diluted share

$2.33

+/-

$0.15

$  3.3

Million

$2.33

+/-

$0.15

Diluted share count

1.253 Billion

—

1.253 Billion

The information provided above is only an estimate of what the Company believes is realizable as of the date of this release and does not incorporate the potential impact of any business combinations, asset acquisitions, divestitures, restructuring, balance sheet valuation adjustments, financing arrangements, other investments, or other items that may be completed or realized after the date of this release, except as described below. U.S. GAAP to non-GAAP reconciling items provided include only those items that are known and can be estimated as of the date of this release. Actual results will vary from this model and the variations may be material. Reconciling items included above are as follows:

Gross margin – amortization related to intangible assets acquired through certain business combinations, $2.7 million.Operating margin – amortization related to intangible assets acquired through certain business combinations, $3.0 million.Net income per diluted share – amortization related to intangible assets acquired through certain business combinations, $3.0 million; amortization of note discounts, $0.5 million; and associated tax benefit for non-GAAP items ($0.2 million); totaling $3.3 million.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP results, this press release also contains non-GAAP financial results. The Company’s non-GAAP results for both the September 2026 and June 2026 quarters exclude amortization related to intangible assets acquired through certain business combinations, the effects of elective deferred compensation-related assets and liabilities, amortization of note discounts, and the net income tax effect of non-GAAP items. The September 2026 quarter also excludes the net income tax effect of a change in tax law, and the June 2026 quarter excludes workforce optimization charges and the related income tax effect.

Management uses non-GAAP gross margin, operating expense, operating income, operating margin, net income, and net income per diluted share to evaluate the Company’s operating and financial results. The Company believes the presentation of non-GAAP results is useful to investors for analyzing business trends and comparing performance to prior periods, along with enhancing investors’ ability to view the Company’s results from management’s perspective. Tables presenting reconciliations of non-GAAP results to U.S. GAAP results are included at the end of this press release and on the Company’s website at https://investor.lamresearch.com. 

Caution Regarding Forward-Looking Statements

Statements made in this press release that are not of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning: our outlook and guidance for future financial results, including revenue, gross margin, operating margin, net income per diluted share, and diluted share count; AI-driven semiconductor demand and device complexity; our focus on operational execution; the perceived benefits of our strategic investments; our ability to outgrow the wafer fabrication equipment market as the industry expands; and deferred revenue. These statements are not a guarantee of future performance and involve a number of risks, uncertainties, and other factors that could cause our actual results or outcomes, or the timing of our results or outcomes, to differ materially from those expressed or implied in this press release. Such risks, uncertainties, and other factors include: our assumptions related to continued expansion of the wafer fabrication equipment market, growth of deposition and etch intensity, and scaling of our operations may prove invalid; business, economic, political, and/or regulatory conditions in the consumer electronics industry, the semiconductor industry and the overall economy, including wafer fabrication equipment spending or demand related to AI, may deteriorate or change; the actions, performance, or investment levels of our customers and competitors may be inconsistent with our expectations; customer and product mix, including across market segments and geographical regions, may change; we may be unable to realize the value of our products and technology, successfully commercialize new products and technologies, implement pricing initiatives, or execute on perceived opportunities; we may be unable to achieve anticipated operational, manufacturing, supply chain, procurement, and scale efficiencies; customer technology transitions, capacity expansions, and fab construction projects may have different timing or be less successful than we expect; we may be unable to manage operating expenses effectively while continuing to invest in research and development, product innovation, customer support, and future growth opportunities; trade regulations, export controls (including entity listings, end use/user controls, technology controls, and foreign direct product rules), tariffs, trade disputes, and other geopolitical developments may inhibit our ability to sell our products or services; supply chain cost increases, tariffs, and other inflationary pressures may continue to impact our profitability; supply chain disruptions or manufacturing capacity constraints may limit our ability to manufacture and sell our products; natural and human-caused disasters, disease outbreaks, war, terrorism, political or governmental unrest or instability, or other events beyond our control may impact our operations and revenue in affected areas; as well as the other risks and uncertainties that are described in the documents filed or furnished by us with the Securities and Exchange Commission, including specifically the “Risk Factors” described in our most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. You should evaluate all forward-looking statements made in this press release in the context of these risks, uncertainties, and other factors. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on our current beliefs, expectations, and assumptions about future events. Except as required by law, we undertake no obligation to update the information or statements made in this press release.

Lam Research Corporation is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry. Lam’s equipment and services allow customers to build smaller and better performing devices. In fact, today, nearly every advanced chip is built with Lam technology. We combine superior systems engineering, technology leadership, and a strong values-based culture, with an unwavering commitment to our customers. Lam Research (Nasdaq: LRCX) is a FORTUNE 500® company headquartered in Fremont, Calif., with operations around the globe. Learn more at www.lamresearch.com. (LRCX)

Condensed Consolidated Financial Tables Follow.

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data and percentages)

(unaudited) 

 

Three Months Ended

September 27,
2026

June 28,
2026

September 28,
2025

Revenue

$ 8,219,418

$ 6,722,238

$ 5,324,173

Cost of goods sold

3,920,565

3,243,498

2,639,294

Gross margin

4,298,853

3,478,740

2,684,879

Gross margin as a percent of revenue

52.3 %

51.7 %

50.4 %

Research and development

666,398

642,922

576,446

Selling, general and administrative

348,728

322,330

279,345

Total operating expenses

1,015,126

965,252

855,791

Operating income

3,283,727

2,513,488

1,829,088

Operating margin

40.0 %

37.4 %

34.4 %

Other income (expense), net

28,493

41,654

30,074

Income before income taxes

3,312,220

2,555,142

1,859,162

Income tax expense

(559,082)

(277,860)

(290,502)

Net income

$ 2,753,138

$ 2,277,282

$ 1,568,660

Net income per share:

Basic

$        2.20

$        1.82

$        1.24

Diluted

$        2.19

$        1.81

$        1.24

Number of shares used in per share calculations:

Basic

1,250,883

1,251,286

1,264,446

Diluted

1,255,768

1,256,032

1,269,313

Cash dividend declared per common share

$        0.33

$        0.26

$        0.26

 

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

September 27,
2026

June 28,
2026

September 28,
2025

(unaudited)

(1)

(unaudited)

ASSETS

Cash and cash equivalents

$      7,437,384

$      5,579,171

$      6,693,046

Accounts receivable, net

5,658,379

5,339,682

3,633,034

Inventories

4,550,544

4,276,111

4,095,054

Prepaid expenses and other current assets

477,805

415,741

385,580

Total current assets

18,124,112

15,610,705

14,806,714

Property and equipment, net

3,126,029

2,956,472

2,510,531

Goodwill and intangible assets

1,911,547

1,895,859

1,826,950

Other assets

3,191,368

3,066,707

2,756,016

Total assets

$    26,353,056

$    23,529,743

$    21,900,211

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current portion of long-term debt and finance lease obligations

$           3,486

$           4,073

$        754,363

Other current liabilities

7,309,013

5,933,176

5,953,547

Total current liabilities

7,312,499

5,937,249

6,707,910

Long-term debt and finance lease obligations

3,731,958

3,730,490

3,729,580

Income taxes payable

684,273

681,197

646,044

Other long-term liabilities

715,852

709,886

623,925

Total liabilities

12,444,582

11,058,822

11,707,459

Stockholders’ equity (2)

13,908,474

12,470,921

10,192,752

Total liabilities and stockholders’ equity

$    26,353,056

$    23,529,743

$    21,900,211

(1)

Derived from audited financial statements.

(2)

Common shares issued and outstanding were 1,249,145 as of September 27, 2026, 1,251,278 as of June 28, 2026, and 1,259,176 as of September 28, 2025.

 

LAM RESEARCH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

 

Three Months Ended

September 27,
2026

June 28,
2026

September 28,
2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$     2,753,138

$     2,277,282

$     1,568,660

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

Depreciation and amortization

122,072

119,642

101,644

Deferred income taxes

(55,300)

(175,752)

(62,875)

Equity-based compensation expense

114,696

103,985

97,241

Other, net

27,633

(8,006)

(1,890)

Changes in operating assets and liabilities

535,413

(859,923)

76,184

Net cash provided by operating activities

3,497,652

1,457,228

1,778,964

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures and intangible assets

(257,697)

(188,801)

(185,121)

Other, net

(9,292)

45,060

(927)

Net cash used for investing activities

(266,989)

(143,741)

(186,048)

CASH FLOWS FROM FINANCING ACTIVITIES:

Principal payments on debt, including finance lease obligations and payments for debt issuance costs

(34,489)

(1,355)

(1,417)

Treasury stock purchases, including excise tax payments

(1,024,965)

(246,560)

(975,791)

Dividends paid

(325,402)

(325,318)

(291,981)

Reissuance of treasury stock related to employee stock purchase plan

—

88,780

—

Proceeds from issuance of common stock, net of issuance costs

4,263

4,426

—

Other, net

(1,786)

(282)

(12,449)

Net cash used for financing activities

(1,382,379)

(480,309)

(1,281,638)

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

4,663

(2,056)

(7,059)

Net change in cash, cash equivalents, and restricted cash

1,852,947

831,122

304,219

Cash, cash equivalents, and restricted cash at beginning of period (1)

5,597,943

4,766,821

6,407,656

Cash, cash equivalents, and restricted cash at end of period (1)

$     7,450,890

$     5,597,943

$     6,711,875

(1)

Restricted cash is reported within Other assets in the Condensed Consolidated Balance Sheets.

 

Non-GAAP Financial Summary

(in thousands, except percentages and per share data)

(unaudited)

 

Three Months Ended

September 27,
2026

June 28,
2026

Revenue

$     8,219,418

$     6,722,238

Gross margin

$     4,305,019

$     3,497,336

Gross margin as a percent of revenue

52.4 %

52.0 %

Operating expenses

$     1,004,280

$        916,420

Operating income

$     3,300,739

$     2,580,916

Operating margin

40.2 %

38.4 %

Net income

$     2,768,417

$     2,279,968

Net income per diluted share

$              2.20

$              1.82

Shares used in per share calculation – diluted

1,255,768

1,256,032

 

Reconciliation of U.S. GAAP Net Income to Non-GAAP Net Income

(in thousands, except per share data)

(unaudited) 

 

Three Months Ended

September 27,
2026

June 28,
2026

U.S. GAAP net income

$       2,753,138

$       2,277,282

Pre-tax non-GAAP items:

Amortization related to intangible assets acquired through certain business combinations – cost of goods sold

2,668

2,668

Elective deferred compensation (“EDC”) related liability valuation increase – cost of goods sold

3,498

15,379

Workforce optimization charges – cost of goods sold

—

549

EDC related liability valuation increase – research and development

6,299

27,682

Workforce optimization charges – research and development

—

960

Amortization related to intangible assets acquired through certain business combinations – selling, general and administrative

348

348

EDC related liability valuation increase – selling, general and administrative

4,199

18,454

Workforce optimization charges – selling, general and administrative

—

1,388

Amortization of note discounts – other income (expense), net

508

504

Gain on EDC related asset – other income (expense), net

(12,870)

(61,325)

Net income tax benefit on non-GAAP items

(825)

(3,921)

Income tax expense from a change in tax law

11,454

—

Non-GAAP net income

$       2,768,417

$       2,279,968

Non-GAAP net income per diluted share

$                2.20

$                1.82

U.S. GAAP net income per diluted share

$                2.19

$                1.81

U.S. GAAP and non-GAAP number of shares used for per diluted share calculation

1,255,768

1,256,032

 

Reconciliation of U.S. GAAP Gross Margin, Operating Expenses and Operating Income to Non-GAAP Gross Margin,
Operating Expenses and Operating Income

(in thousands, except percentages)

(unaudited) 

 

Three Months Ended

September 27,
2026

June 28,
2026

U.S. GAAP gross margin

$     4,298,853

$     3,478,740

Pre-tax non-GAAP items:

Amortization related to intangible assets acquired through certain business combinations

2,668

2,668

EDC related liability valuation increase

3,498

15,379

Workforce optimization charges

—

549

Non-GAAP gross margin

$     4,305,019

$     3,497,336

U.S. GAAP gross margin as a percent of revenue

52.3 %

51.7 %

Non-GAAP gross margin as a percent of revenue

52.4 %

52.0 %

U.S. GAAP operating expenses

$     1,015,126

$        965,252

Pre-tax non-GAAP items:

Amortization related to intangible assets acquired through certain business combinations

(348)

(348)

EDC related liability valuation increase

(10,498)

(46,136)

Workforce optimization charges

—

(2,348)

Non-GAAP operating expenses

$     1,004,280

$        916,420

U.S. GAAP operating income

$     3,283,727

$     2,513,488

Non-GAAP operating income

$     3,300,739

$     2,580,916

U.S. GAAP operating margin

40.0 %

37.4 %

Non-GAAP operating margin

40.2 %

38.4 %

Lam Research Corporation Contacts:
Ram Ganesh, Investor Relations, phone: 510-572-1615, e-mail: investor.relations@lamresearch.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/lam-research-corporation-reports-financial-results-for-the-quarter-ended-september-27-2026-302915810.html

SOURCE Lam Research Corporation

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SERA PROGNOSTICS ANNOUNCES CONFERENCE CALL AND WEBCAST OF THIRD QUARTER FISCAL YEAR 2026 FINANCIAL RESULTS ON NOVEMBER 4, 2026

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SALT LAKE CITY, Oct. 21, 2026 /PRNewswire/ — Sera Prognostics Inc., The Pregnancy Company® (Nasdaq: SERA), focused on improving maternal and neonatal health by providing innovative pregnancy biomarker information to doctors and patients, today announced it will report its third quarter fiscal year 2026 financial results on Wednesday, November 4, 2026, after market close. The Company will host a corresponding conference call and live webcast to discuss operational highlights, financial results and key topics at 5:00 p.m. Eastern Time. A press release outlining the financial results and highlights will be publicly distributed before the call.

Conference Call Details:
US domestic callers: (800) 836-8184
International callers: (646) 357-8785

Webcast Registration Link: https://app.webinar.net/wK8exGQrE0B

Live audio of the webcast will be available on the Investors page of the Company’s website at www.sera.com. The webcast will be archived on the Investors page and will be available for one year.

About Sera Prognostics, Inc.

Sera Prognostics is a leading health diagnostics company dedicated to improving the lives of women and babies through precision pregnancy care. Sera’s mission is to provide early, pivotal pregnancy information to improve the health of mothers and newborns, resulting in reductions in the costs of healthcare delivery. Sera has a robust pipeline of innovative diagnostic tests focused on the early prediction of preterm birth risk and other complications of pregnancy. Sera’s precision medicine PreTRM® Test reports to a physician the individualized risk of spontaneous premature delivery in a pregnancy, enabling earlier proactive interventions in women with higher risk. Sera Prognostics is headquartered in Salt Lake City, Utah.

About Preterm Birth

Preterm birth is defined as any birth before 37 weeks’ gestation and is the leading cause of illness and death in newborns. The 2025 March of Dimes Report Card shows that, for the fourth consecutive year, the United States earned a D+ grade for preterm birth, marking the longest stretch of the lowest grade in Report Card history. Prematurity is associated with a significantly increased risk of major long-term medical complications, including learning disabilities, cerebral palsy, chronic respiratory illness, intellectual disability, seizures, and vision and hearing loss, and can generate significant costs throughout the lives of affected children. The annual health care costs to manage short- and long-term complications of prematurity in the United States were estimated to be approximately $25 billion for 2016.

About the PreTRM® Test

The PreTRM® Test is the only broadly validated, commercially available blood-based biomarker test that provides an early, accurate and individualized risk prediction for spontaneous preterm birth in asymptomatic singleton pregnancies. The PreTRM® Test measures and analyzes proteins in the blood that are highly predictive of preterm birth. The PreTRM® Test permits physicians to identify, during the weeks 18 through 20 of pregnancy, which women are at increased risk for preterm birth and its complications, enabling more informed, personalized clinical decisions based on each woman’s individual risk. The PreTRM® Test is ordered by a medical professional.

Sera, Sera Prognostics, the Sera Prognostics logo, The Pregnancy Company, and PreTRM are trademarks or registered trademarks of Sera Prognostics, Inc. in the United States and/or other countries.

Safe Harbor Statement

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the date, time and content of the Company’s quarterly earnings release and conference call; availability of the live audio of the conference call on the Company’s website; and the Company’s strategic directives under the caption “About Sera Prognostics, Inc.” These “forward-looking statements” are based on management’s current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by forward-looking statements. These risks and uncertainties include, but are not limited to: net losses, cash generation, and the potential need to raise more capital; revenues from the PreTRM Test representing substantially all Company revenues to date; the need for broad scientific and market acceptance of the PreTRM Test; a concentrated number of material customers; our ability to introduce new products; potential competition; our proprietary biobank; critical suppliers; estimates of total addressable market opportunity and forecasts of market growth; potential third-party payer coverage and reimbursement; new reimbursement methodologies applicable to the PreTRM Test, including new CPT codes and payment rates for those codes; changes in FDA regulation of laboratory-developed tests; the intellectual property rights protecting our tests and market position; and other factors discussed under the heading “Risk Factors” contained in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, as well as any updates to those risk factors filed from time to time in our periodic and current reports filed with the Securities and Exchange Commission. All information in this press release is as of the date of the release, and the Company undertakes no duty to update this information unless required by law. 

Investor Contact
Jennifer Zibuda, Head of Investor Relations
jzibuda@sera.com
+1 (801) 396-8043

View original content to download multimedia:https://www.prnewswire.com/news-releases/sera-prognostics-announces-conference-call-and-webcast-of-third-quarter-fiscal-year-2026-financial-results-on-november-4-2026-302915767.html

SOURCE Sera Prognostics, Inc.

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