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Shutterstock Reports Third Quarter 2026 Financial Results

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NEW YORK, Nov. 5, 2026 /PRNewswire/ — Shutterstock, Inc. (NYSE: SSTK) (the “Company”), a family of brands delivering scalable creative and GenAI solutions to help customers fuel great work, today announced financial results for the third quarter ended September 30, 2026.

Commenting on the Company’s performance, Jon Oringer, Chairman and Chief Executive Officer of Shutterstock, said, “During the third quarter, we maintained a strong focus on operational discipline and cost management while navigating continued headwinds in our core Content segment and deal timing volatility in Data Licensing.

“We reduced third-quarter Product Development and SG&A expenses by 30% year-over-year to $96 million, representing $39 million in quarterly savings, while reducing total headcount by 16% year-to-date. Importantly, we are on target to deliver the $60 million in annualized run-rate operating expense reductions we committed to in our second-quarter earnings announcement. These actions strengthen our financial position and provide greater flexibility as we focus on the opportunities ahead.

“AI is fundamentally changing how creative content is produced and consumed, creating new opportunities for Shutterstock to build on its content library, data capabilities, and relationships across the creative ecosystem. With Hichame Assi as President and COO, we’re bringing greater focus to operational performance and execution while continuing to invest in opportunities that we believe will build on our strategic assets and deliver greater value to customers and contributors. Together, we’re focused on positioning Shutterstock for long-term growth”.

Chief Financial Officer Transition

Shutterstock also announced that Rik Powell will depart from his role effective immediately and from the Company effective November 13, 2026. Scott Grossman, Senior Vice President, Global Head of Finance, will assume the role of Interim Chief Financial Officer effective immediately.

“I want to thank Rik for his leadership and contributions to Shutterstock, including stepping into the interim CEO role earlier this year,” said Mr. Oringer. “We appreciate his commitment to the Company and wish him all the best.”

Third Quarter 2026 highlights as compared to Third Quarter 2025:

     Financial Highlights

Revenues were $173.9 million compared to $260.1 million.Net loss was $197.8 million compared to net income of $13.4 million.Net loss includes a $195.6 million non-cash, after-tax goodwill impairment charge.Net loss per diluted common share was $5.35 compared to net income per diluted common share of $0.37.Adjusted net income was $16.7 million compared to $36.4 million.Adjusted net income per diluted common share was $0.45 compared to $0.99.Adjusted EBITDA was $41.8 million compared to $79.4 million.

THIRD QUARTER RESULTS

Revenue

Third quarter revenue of $173.9 million decreased by $86.2 million or 33% as compared to the third quarter of 2025.

Revenue from our Content product offering decreased by $36.4 million, or 19%, as compared to the third quarter of 2025, to $158.1 million. The reduction in our Content revenue was driven primarily by weakness in new customer acquisition. Content revenue represented 91% of our total revenue in the third quarter of 2026.

Revenue generated from our Data, Distribution, and Services product offering decreased by $49.8 million, or 76%, as compared to the third quarter of 2025, to $15.8 million, and represented 9% of third quarter revenue in 2026. Revenue recognition in our data offering may vary from quarter-to-quarter based on the delivery timing of metadata licensed assets.

Net (loss) / income and net (loss) / income per diluted common share

Net income decreased by $211.1 million to a net loss of $197.8 million in the third quarter of 2026, compared to net income of $13.4 million for the third quarter of 2025. Net loss per diluted common share was $5.35, as compared to net income per diluted common share of $0.37 for the same period in 2025. In the third quarter of 2026, the Company recorded a non-cash goodwill impairment charge of $203.3 million after identifying a triggering event resulting from the impact of the dividend suspension announced on July 22, 2026. Additionally, the Company had further declines in revenue, with operating costs not declining at a similar rate, as well as $0.4 million of unrealized losses related to our investment in Meitu, Inc, $0.5 million of costs related to the proposed merger, $2.6 million of strategic advisory and other fees, and $4.3 million of workforce optimizations expenses.

Adjusted net income and adjusted net income per diluted common share

Adjusted net income of $16.7 million in the third quarter of 2026 decreased by $19.7 million, compared to adjusted net income of $36.4 million for the third quarter of 2025, primarily due to the decline in revenue.

Adjusted net income per diluted common share was $0.45, compared to $0.99 for the third quarter of 2025.

Adjusted EBITDA

Adjusted EBITDA of $41.8 million for the third quarter of 2026 decreased by $37.6 million, or 47%, as compared to the third quarter of 2025, primarily due to the decline in revenue.

Net loss margin of 113.7% for the third quarter of 2026 decreased by 118.8%, as compared to net income margin of 5.1% in the third quarter of 2025. The adjusted EBITDA margin of 24.0% for the third quarter of 2026 decreased by 6.5%, as compared to 30.5% in the third quarter of 2025.

THIRD QUARTER LIQUIDITY

Our cash and cash equivalents decreased by $22.7 million to $110.5 million at September 30, 2026, as compared with $133.2 million as June 30, 2026. This was driven by $18.3 million of net cash from operating activities, offset by $29.8 million of net cash used in financing activities and $9.8 million of net cash used in investing activities.

Net cash from operating activities of $18.3 million was driven by cash generation from our business operations and changes in the timing of cash collections from our customers and payments pertaining to operating expenses offset by $5.0 million in contributor royalty payments, an $8.6 million reduction in deferred revenue and $4.3 million of payments related to the proposed merger.

Cash used in investing activities for the three months ended September 30, 2026 consisted of $9.8 million related to capital expenditures, $0.3 million of content acquisition, partially offset by $0.1 million related to the receipt of the Giphy Retention Compensation, as reimbursed by the Giphy seller.

Cash used in financing activities for the three months ended September 30, 2026 consisted primarily of $30.0 million of repayments on our revolving credit facility. 

Adjusted free cash flow was $12.5 million for the third quarter of 2026, an decrease of $62.7 million from the third quarter of 2025.

KEY OPERATING METRICS

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

20255

Subscribers (end of period)(1)

890,000

1,060,000

890,000

1,060,000

Subscriber revenue (in millions)(2)

$           95.1

$         107.2

$         298.7

$         325.0

Average revenue per customer (last twelve months)(3)

$            289

$            279

$            289

$            279

Paid downloads (in millions)(4)

90.9

111.7

293.7

345.2

________________________________________

Subscribers, Subscriber Revenue and Average Revenue Per Customer from acquisitions are included in these metrics beginning twelve months after the closing of the respective business combination. Accordingly, the metrics include Subscribers, Subscriber revenue, and Average revenue per customer from Backgrid beginning February 2025. 2025 metrics include the counts and revenues from Envato, which was acquired in July 2024.

(1) Subscribers is defined as those customers who purchase one or more of our monthly recurring products for a continuous period of at least three months, measured as of the end of the reporting period.

(2) Subscriber revenue is defined as the revenue generated from subscribers during the period.

(3) Average revenue per customer is calculated by dividing total revenue for the last twelve-month period by customers. Customers is defined as total active, paying customers that contributed to total revenue over the last twelve-month period. 

(4) Paid downloads is the number of downloads that our customers make in a given period of our content. Paid downloads exclude content related to our Studios business, downloads of content that are offered to customers for no charge, including our free trials and metadata delivered through our data deal offering.

NON-GAAP FINANCIAL MEASURES

To supplement Shutterstock’s consolidated financial statements presented in accordance with the accounting principles generally accepted in the United States, or GAAP, Shutterstock’s management considers certain financial measures that are not prepared in accordance with GAAP, collectively referred to as non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), and adjusted free cash flow.

Shutterstock defines adjusted EBITDA as net income adjusted for depreciation and amortization, non-cash equity-based compensation, Giphy Retention Compensation Expense – non-recurring, foreign currency transaction gains and losses, severance costs associated with strategic workforce optimizations, goodwill impairment, unrealized losses / gains on investments, legal contingencies, strategic advisory fees, interest income and expense, income taxes and merger related costs; adjusted EBITDA margin as the ratio of adjusted EBITDA to revenue; adjusted net income as net income adjusted for the impact of non-cash equity-based compensation, amortization of acquisition-related intangible assets, strategic advisory fees, Giphy Retention Compensation Expense – non-recurring, severance costs associated with strategic workforce optimizations (reported in Other), unrealized losses / gains on investments (reported in Other), goodwill impairment,  impairment loss on long-term investment, legal contingencies, merger related costs and the estimated tax impact of such adjustments; adjusted net income per diluted common share as adjusted net income divided by weighted average diluted shares; revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) as the increase in current period revenues over prior period revenues, utilizing fixed exchange rates for translating foreign currency revenues for all periods presented in the comparison; and adjusted free cash flow as net cash provided by operating activities, adjusted for capital expenditures, content acquisition, cash received related to Giphy Retention Compensation in connection with the acquisition of Giphy, cash paid for the settlement of the FTC investigation, and cash paid for costs related to the proposed merger.

The expense associated with the Giphy Retention Compensation related to (i) the one-time employment inducement bonuses and (ii) the vesting of the cash value of unvested Meta equity awards held by the employees prior to closing, which are reflected in operating expenses (together, the “Giphy Retention Compensation Expense – non-recurring”), are required payments in accordance with the terms of the acquisition. Meta’s sale of Giphy was directed by the United Kingdom Competition and Markets Authority (the “CMA”) and accordingly, the terms of the acquisition were subject to CMA preapproval. Management considers the operating expense associated with these required payments to be unusual and non-recurring in nature. The Giphy Retention Compensation Expense – non-recurring is not considered an ongoing expense necessary to operate the Company’s business. Therefore, such expenses have been included in the below adjustments for calculating adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share.

These non-GAAP financial measures have not been calculated in accordance with GAAP and should be considered only in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. Shutterstock cautions investors that non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.

Shutterstock’s management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) and adjusted free cash flow are useful to investors because these measures enable investors to analyze Shutterstock’s operating results on the same basis as that used by management. Additionally, management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income per diluted common share provide useful information to investors about the performance of the Company’s overall business because such measures eliminate the effects of unusual or other infrequent charges that are not directly attributable to Shutterstock’s underlying operating performance; and revenue growth (including by product offering) on a constant currency basis (expressed as a percentage) provides useful information to investors by eliminating the effect of foreign currency fluctuations that are not directly attributable to Shutterstock’s operating performance. Management also believes that providing these non-GAAP financial measures enhances the comparability for investors in assessing Shutterstock’s financial reporting. Shutterstock’s management believes that adjusted free cash flow is useful for investors because it provides them with an important perspective on the cash available for strategic measures, after making necessary capital investments in internal-use software and website development costs to support the Company’s ongoing business operations, and provides them with the same measures that management uses as the basis for making resource allocation decisions.

Shutterstock’s management also uses the non-GAAP financial measures adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), and adjusted free cash flow, in conjunction with GAAP financial measures, as an integral part of managing the business and to, among other things: (i) monitor and evaluate the performance of Shutterstock’s business operations, financial performance and overall liquidity; (ii) facilitate management’s internal comparisons of the historical operating performance of its business operations; (iii) facilitate management’s external comparisons of the results of its overall business to the historical operating performance of other companies that may have different capital structures and debt levels; (iv) review and assess the operating performance of Shutterstock’s management team and, together with other operational objectives, as a measure in evaluating employee compensation; (v) analyze and evaluate financial and strategic planning decisions regarding future operating investments; and (vi) plan for and prepare future annual operating budgets and determine appropriate levels of operating investments.

Reconciliations of the differences between each of our non-GAAP financial measures (adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted common share, revenue growth (including by product offering) on a constant currency basis (expressed as a percentage), adjusted free cash flow, and each measure’s most directly comparable financial measure calculated and presented in accordance with GAAP, are presented under the headings “Reconciliation of Non-GAAP Financial Information to GAAP” and “Supplemental Financial Data” immediately following the Consolidated Balance Sheets.

ABOUT SHUTTERSTOCK

Shutterstock is in the business of turning ideas into impact. Powered by a global network of millions of creators and our cutting-edge technology, we provide businesses, creatives and brand leaders with the essential, universal ingredients to make their work more effective. Shutterstock offers access to one of the world’s largest and most diverse collections of high-quality licensable assets, specialized training datasets, evaluation tools, and end-to-end strategic partnerships for the full model training lifecycle, as well as advertising and distribution solutions, exclusive editorial content, and full-service studio production—delivering unparalleled resources to fuel great work.                                

Discover our impact at www.shutterstock.com and connect with us on LinkedIn, Instagram, X, Facebook and YouTube.

FORWARD-LOOKING STATEMENTS

The statements in this press release, and any related oral statements, include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, are forward-looking statements. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, financings or otherwise, based on current beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. Forward-looking statements speak only as of the date they are made or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as there can be no assurance that the events or circumstances reflected in these statements will be achieved or will occur or the timing thereof. Forward-looking statements can often, but not always, be identified by the use of forward-looking terminology including “believes,” “expects,” “may,” “will,” “should,” “could,” “might,” “seeks,” “intends,” “plans,” “pro forma,” “estimates,” “anticipates,” “designed,” or the negative of these words and phrases, other variations of these words and phrases or comparable terminology, but not all forward-looking statements include such identifying words. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary. The forward-looking statements in this press release relate to, among other things, statements regarding industry prospects, future business, future results of operations or financial condition, future dividends, future stock performance, our ability to consummate acquisitions and integrate the businesses we have acquired or may acquire into our existing operations, new or planned features, products or services, management strategies, our ability to offer premier Data Licensing and AI Services, and our competitive position. Important factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include, among others, the risks discussed under the caption “Risk Factors” in Shutterstock’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward looking statements. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward looking statements. Shutterstock does not assume, and hereby disclaims, any obligation to update forward-looking statements, except as may be required by law.

Shutterstock, Inc.

Consolidated Statements of Operations

(In thousands, except for per share data)

(unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Revenue

$       173,898

$       260,094

$       594,869

$       769,704

Operating expenses:

Cost of revenue

83,713

102,558

272,288

309,440

Sales and marketing

43,941

59,358

140,295

169,794

Product development

14,228

22,374

51,207

62,993

General and administrative

27,741

43,313

139,256

150,054

Goodwill impairment

203,323

—

377,061

—

Total operating expenses

372,946

227,603

980,107

692,281

(Loss) / income from operations

(199,048)

32,491

(385,238)

77,423

Interest expense

(3,567)

(4,226)

(11,160)

(12,748)

Other (expense) / income, net

2,097

3,138

(14,426)

30,277

(Loss) / income before income taxes

(200,518)

31,403

(410,824)

94,952

(Benefit) / provision for income taxes

(2,766)

18,016

(9,565)

33,437

Net (loss) / income

$      (197,752)

$        13,387

$      (401,259)

$        61,515

(Losses) / earnings per share:

Basic

$            (5.35)

$            0.38

$          (11.02)

$            1.75

Diluted

$            (5.35)

$            0.37

$          (11.02)

$            1.71

Weighted average common shares outstanding:

Basic

36,978

35,484

36,413

35,213

Diluted

36,978

36,642

36,413

35,979

 

Shutterstock, Inc.

Consolidated Balance Sheets

(In thousands, except par value amount)

(unaudited)

September 30, 2026

December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$          110,472

$          178,244

Accounts receivable, net of allowance of $4,073 and $3,431

100,498

112,626

Prepaid expenses and other current assets

45,852

47,769

Total current assets

256,822

338,639

Property and equipment, net

61,213

62,553

Right-of-use assets

6,564

9,770

Intangible assets, net

180,931

215,673

Goodwill

196,877

574,614

Deferred tax assets, net

79,393

61,289

Other assets

71,723

93,398

Total assets

$          853,523

$        1,355,936

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$            13,477

$             13,898

Accrued expenses

102,559

129,952

Contributor royalties payable

94,041

94,163

Deferred revenue

189,737

212,984

Debt

128,113

158,110

Other current liabilities

15,242

19,295

Total current liabilities

543,169

628,402

Deferred tax liability, net

636

1,134

Long-term debt

114,416

116,639

Lease liabilities

11,123

17,247

Other non-current liabilities

12,645

11,476

Total liabilities

681,989

774,898

Commitments and contingencies

Stockholders’ equity:

Common stock, $0.01 par value; 200,000 shares authorized; 42,598 and 41,049 shares

issued and 37,077 and 35,528 shares outstanding as of September 30, 2026 and

December 31, 2025, respectively

424

410

Treasury stock, at cost; 5,521 shares as of September 30, 2026 and December 31, 2025

(269,804)

(269,804)

Additional paid-in capital

543,095

520,018

Accumulated other comprehensive loss

(10,091)

(4,754)

Retained earnings

(92,090)

335,168

Total stockholders’ equity

171,534

581,038

Total liabilities and stockholders’ equity

$          853,523

$        1,355,936

 

Shutterstock, Inc.

Consolidated Statements of Cash Flows

(In thousands, except par value amount)

(unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2026

2025

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES

Net (loss) / income

$      (197,752)

$         13,387

$     (401,259)

$         61,515

Adjustments to reconcile net (loss) / income to net cash

provided by operating activities:

Depreciation and amortization

21,786

22,877

66,906

68,159

Deferred taxes

(2,858)

24,494

(18,599)

17,696

Non-cash equity-based compensation

7,840

12,962

33,748

46,471

Goodwill impairment

203,323

—

377,061

—

Loss on impairment of long-term investment

—

—

—

5,000

Bad debt expense

356

60

675

1,020

Unrealized loss / (gain) on investments, net

(360)

(2,840)

17,908

(34,128)

Changes in operating assets and liabilities:

Accounts receivable

1,170

26,245

10,871

(29,429)

Prepaid expenses and other current and non-current assets

468

(12,643)

2,060

10,114

Accounts payable and other current and non-current liabilities

(2,069)

(3,810)

(31,455)

(18,397)

Contributor royalties payable

(5,020)

12,329

64

22,109

Deferred revenue

(8,634)

(14,671)

(21,738)

(19,657)

Net cash provided by operating activities

$         18,250

$         78,390

$        36,242

$       130,473

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures

(9,804)

(10,422)

(31,514)

(32,542)

Cash received related to Giphy Retention Compensation

102

373

579

1,234

Acquisition of content

(326)

(1,149)

(627)

(6,127)

Security deposit (payment) / receipt

238

(41)

487

(3)

Net cash used in investing activities

$          (9,790)

$       (11,239)

$       (31,075)

$       (37,438)

CASH FLOWS FROM FINANCING ACTIVITIES

Cash paid to settle employee taxes related to RSU vesting

197

(4,092)

(10,651)

(9,104)

Payment of cash dividends

—

(11,699)

(25,999)

(34,823)

Repayment of credit facility

(30,000)

(781)

(31,595)

(2,344)

Net cash used in financing activities

$        (29,803)

$       (16,572)

$       (68,245)

$       (46,271)

Effect of foreign exchange rate changes on cash

(1,393)

(1,453)

(4,694)

7,521

Net (decrease) / increase in cash and cash equivalents

(22,736)

49,126

(67,772)

54,285

Cash and cash equivalents, beginning of period

133,208

116,410

178,244

111,251

Cash and cash equivalents, end of period

$       110,472

$       165,536

$       110,472

$       165,536

Supplemental Disclosure of Cash Information:

Cash paid for income taxes

$              607

$           1,707

$          8,285

$         16,396

Cash paid for interest

3,539

4,005

10,827

12,470

 

Shutterstock, Inc.

Reconciliation of Non-GAAP Financial Information to GAAP

(In thousands, except per share information)

(unaudited)

Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income per diluted share, revenue growth (including by product

offering) on a constant currency basis (expressed as a percentage), and adjusted free cash flow are not financial measures prepared in

accordance with United States generally accepted accounting principles (GAAP). Such non-GAAP financial measures should not be construed

as alternatives to any other measures of performance determined in accordance with GAAP. Investors are cautioned that non-GAAP financial

measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures

presented by other companies.

The following is a reconciliation of net income to adjusted net income for each of the periods indicated (in thousands, except per share data):

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Net (loss) / income

(197,752)

13,387

(401,259)

61,515

Add / (less) Non-GAAP adjustments:

Non-cash equity-based compensation

7,824

12,962

33,748

46,471

Tax effect of non-cash equity-based compensation (1)

(1,842)

(3,046)

(7,930)

(10,921)

Acquisition-related amortization expense (2)

9,286

9,630

28,449

28,908

Tax effect of acquisition-related amortization expense (1)

(2,182)

(2,263)

(6,686)

(6,794)

Unrealized loss / (gain) on investment

(360)

(2,840)

17,908

(34,129)

Impairment loss on long-term investment

—

—

—

5,000

Strategic advisory fees and other

2,560

—

2,560

—

Tax effect of Strategic advisory fees and other(1)

(553)

—

(553)

—

Goodwill impairment

203,323

—

377,061

—

Tax effect of goodwill impairment(1)

(7,725)

—

(18,096)

—

Workforce optimization – severance

4,272

3,801

13,300

4,102

Tax effect of workforce optimization – severance(1)

(961)

(855)

(2,996)

(923)

Giphy retention compensation expense – non-recurring

—

215

649

1,219

Tax effect of Giphy retention compensation expense – non-

recurring(1)

—

(51)

(153)

(287)

Proposed merger related costs

494

7,083

7,029

27,654

Tax effect of proposed merger related costs(1)

(111)

(1,594)

(1,581)

(6,223)

Legal contingency

600

—

33,600

—

Tax effect of legal contingency(1)

(135)

—

(7,560)

—

Adjusted net income

$           16,738

$             36,429

$          67,490

$        115,592

Net (loss) / income per diluted common share

$              (5.35)

$                 0.37

$           (11.02)

$              1.71

Adjusted net income per diluted common share

$               0.45

$                 0.99

$              1.85

$              3.21

Weighted average diluted shares

36,978

36,642

36,413

35,979

________________________________________

(1)   Statutory tax rates are used to calculate the tax effect of the adjustments.

(2)   Of these amounts, $8.6 million and $8.9 million are included in cost of revenue for the three months ended September 30, 2026 and 2025,

        respectively. The remainder of acquisition-related amortization expense is included in general and administrative expense in the Statement

        of Operations.

The following is a reconciliation of net income to adjusted EBITDA for each of the periods indicated (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Net (loss) / income

$        (197,752)

$             13,387

$       (401,259)

$          61,515

Add / (less) Non-GAAP adjustments:

Interest expense

3,567

4,226

11,160

12,748

Interest income

(123)

(869)

(1,404)

(2,881)

(Benefit) / provision for income taxes

(2,766)

18,016

(9,565)

33,437

Depreciation and amortization

21,786

22,877

66,906

68,159

EBITDA

$        (175,288)

$             57,637

$       (334,162)

$        172,978

Non-cash equity-based compensation

7,824

12,962

33,748

46,471

Giphy retention compensation expense – non-recurring

—

215

649

1,219

Proposed merger related costs

494

7,083

7,029

27,654

Foreign currency loss / (gain)

(1,614)

571

(2,078)

1,733

Unrealized loss / (gain) on investment

(360)

(2,840)

17,908

(34,129)

Legal contingencies

600

—

33,600

—

Workforce optimization – severance

4,272

3,801

13,300

4,102

Goodwill impairment

203,323

—

377,061

—

Strategic advisory fees and other

2,560

—

2,560

5,000

Adjusted EBITDA

41,811

79,429

149,615

225,028

Revenue

$         173,898

$           260,094

$        594,869

$        769,704

Net (loss) /  income margin

(113.7) %

5.1 %

(67.5) %

8.0 %

Adjusted EBITDA margin

24.0 %

30.5 %

25.2 %

29.2 %

The following is a schedule of Revenue Growth / (Decline) (including by product offering) on a Constant Currency Basis ($’s in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Reported revenue (in thousands)

$         173,898

$           260,094

$        594,869

$        769,704

Revenue (decline) /growth

(33) %

4 %

(23) %

12 %

Revenue (decline) / growth on a constant currency basis

(33) %

3 %

(23) %

12 %

Content reported revenue (in thousands)

$         158,075

$           194,426

$        501,864

$        597,110

Content revenue (decline) / growth

(19) %

(5) %

(16) %

9 %

Content revenue (decline) / growth on a constant currency basis

(18) %

(5) %

(16) %

9 %

Data, Distribution, and Services reported revenue (in thousands)

$           15,823

$             65,668

$          93,005

$        172,594

Data, Distribution, and Services revenue (decline) / growth

(76) %

40 %

(46) %

26 %

Data, Distribution, and Services revenue (decline) / growth on a

constant currency basis

(76) %

40 %

(46) %

26 %

The following is a reconciliation of net cash provided by operating activities to adjusted free cash flow for each of the periods indicated (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Cash flow information:

Net cash provided by operating activities

$           18,250

$             78,390

$          36,242

$        130,473

Net cash used in investing activities

$            (9,790)

$            (11,239)

$         (31,075)

$         (37,438)

Net cash used in financing activities

$          (29,803)

$            (16,572)

$         (68,245)

$         (46,271)

Adjusted free cash flow:

Net cash provided by operating activities

$           18,250

$             78,390

$          36,242

$        130,473

Capital expenditures

(9,804)

(10,422)

(31,514)

(32,542)

Content acquisitions

(326)

(1,149)

(627)

(6,127)

Cash received related to Giphy Retention Compensation

102

373

579

1,234

Legal contingency settlement

—

—

35,000

—

Proposed merger related costs

4,281

8,032

14,431

23,068

Adjusted Free Cash Flow

$           12,503

$             75,224

$          54,111

$        116,106

The following is a schedule of Revenues by Product Offering (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Content

$         158,075

$           194,426

$        501,864

$        597,110

Data, Distribution, and Services

$           15,823

$             65,668

$          93,005

$        172,594

Total revenue

$         173,898

$           260,094

$        594,869

$        769,704

 

Shutterstock, Inc.

Supplemental Financial Data

(unaudited)

 Historical Operating Metrics

Three Months Ended

9/30/26

6/30/26

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

Subscribers (end of period, in thousands) (1)

890

951

993

1,032

1,060

1,073

1,079

459

Subscriber revenue (in millions) (2)

$   95.1

$   99.8

$  103.8

$  104.7

$   107.2

$  108.0

$  109.9

$   75.7

Average revenue per customer (last twelve months) (3)

$    289

$    292

$     284

$     281

$      279

$     266

$     244

$    450

Paid downloads (in millions) (4)

90.9

98.7

104.1

107.9

111.7

112.6

120.9

33.0

Subscribers, Subscriber Revenue and Average Revenue Per Customer from acquisitions are included in these metrics beginning twelve months after the

closing of the respective business combination. Accordingly, the metrics include Subscribers, Subscriber revenue, and Average revenue per customer from 

Backgrid beginning February 2025. 2025 metrics include the counts and revenues from Envato, which was acquired in July 22, 2024.

(1) Subscribers is defined as those customers who purchase one or more of our monthly recurring products for a continuous period of at least three months,

measured as of the end of the reporting period.

(2) Subscriber revenue is defined as the revenue generated from subscribers during the period.

(3) Average revenue per customer is calculated by dividing total revenue for the last twelve-month period by customers. Customers is defined as total active,

paying customers that contributed to total revenue over the last twelve-month period. 

(4) Paid downloads is the number of downloads that our customers make in a given period of our content. Paid downloads exclude content related to our

Studios business, downloads of content that are offered to customers for no charge, including our free trials and metadata delivered through our data deal

offering.

Equity-Based Compensation by expense category

Three Months Ended

($ in thousands)

9/30/26

6/30/26

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

Cost of revenue

$     319

$      270

$      183

$      558

$      528

$      532

$      396

$      505

Sales and marketing

2,683

2,652

2,112

2,287

2,098

2,559

2,255

2,627

Product development

2,820

3,242

3,078

3,218

3,370

3,529

2,912

2,722

General and administrative

2,002

6,398

7,999

8,542

6,966

9,005

12,321

9,256

Total non-cash equity-based compensation

$  7,824

$ 12,562

$ 13,372

$ 14,605

$ 12,962

$ 15,625

$ 17,884

$ 15,110

Depreciation and Amortization by expense category

Three Months Ended

($ in thousands)

9/30/26

6/30/26

3/31/26

12/31/25

9/30/25

6/30/25

3/31/25

12/31/24

Cost of revenue

$ 20,100

$ 20,732

$ 20,898

$ 21,010

$ 21,028

$ 20,804

$ 20,742

$ 21,191

General and administrative

1,686

1,684

1,806

1,725

1,849

1,807

1,929

2,096

Total depreciation and amortization

$ 21,786

$ 22,416

$ 22,704

$ 22,735

$ 22,877

$ 22,611

$ 22,671

$ 23,287

 

 

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SOURCE Shutterstock, Inc.

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Reality Television Icon Audrina Patridge Launches New Podcast “Say More”

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Reality television icon Audrina Patridge launches ‘Say More’ November 12, a weekly audio and video podcast produced by Network One Digital, with advertising sales led by Amplitude Media Partners.

LOS ANGELES, Nov. 11, 2026 /PRNewswire-PRWeb/ — Reality television icon and author Audrina Patridge is returning to podcasting with Say More with Audrina Patridge, a new weekly series that brings celebrity friends, experts and other compelling guests together for honest conversations that go beyond the surface. The show premieres November 12 in both audio and video formats, with its official trailer available now. The launch also marks the beginning of two key partnerships—with Network One Digital (NOD) and Amplitude Media Partners (AMP)—designed to support the show’s growth and long-term success.

“I’ve spent so much of my life in front of the camera, but I feel like there’s still so much to learn, so many stories to share, and so many conversations worth having. That’s really what inspired Say More.” – Audrina Patridge

From dating, desire and relationships to motherhood, mental health and starting over, Say More will explore the subjects people discuss in their group chats, over brunch and with the friends who know them best. Guided by Patridge’s natural curiosity, sense of humor and life experience, each episode will use personal stories and unexpected questions to examine what people are really thinking, feeling and experiencing.

The podcast marks Patridge’s return to the medium after previously co-hosting Was It Real? The Hills Rewatch, which revisited the landmark MTV reality series that first introduced her to audiences. While her previous show looked back at The Hills, Say More gives Patridge an opportunity to explore the questions, relationships and life transitions shaping who she—and her audience—is today.

“I’ve spent so much of my life in front of the camera, but I feel like there’s still so much to learn, so many stories to share, and so many conversations worth having,” said Audrina Patridge. “That’s really what inspired Say More. I wanted to create a space where we can be ourselves, have real, honest conversations, laugh, learn from each other, and talk about everything from relationships and motherhood to personal growth and all the ups and downs of life. I’m in a different chapter of my life now, and I’m excited to explore new things, ask questions, and hopefully inspire others along the way. Shane and Travis at Network One Digital really understood what I wanted to create from the beginning, and they’ve been amazing partners in bringing this vision to life. I’m so excited for everyone to be a part of it!”

Patridge rose to prominence as one of the original stars of MTV’s The Hills, the influential reality series that chronicled the personal and professional lives of a group of young adults in Los Angeles. She later returned for The Hills: New Beginnings, competed on Dancing with the Stars, hosted NBC’s travel and lifestyle series 1st Look and starred in her own VH1 reality series, Audrina. Her additional credits include film roles in Sorority Row and Into the Blue 2: The Reef.

In 2022, Patridge released her memoir, Choices: To the Hills and Back Again, sharing her perspective on navigating fame, relationships, motherhood and life in the public eye. Those experiences will help inform the thoughtful, personal and occasionally provocative conversations at the heart of Say More.

Alongside conversations with celebrity guests and subject-matter experts, Patridge will connect each topic to the everyday realities of love, family, friendship, confidence and change. Episodes may move from relationship red flags and personal reinvention to listener questions and stories guests have never previously shared publicly. The show will also leave room for astrology, spirituality and subjects that may not have simple explanations—but remain irresistible to discuss.

Network One Digital (NOD) will oversee production of the series, creating a polished audio and video experience while helping Patridge translate her distinctive voice and perspective into a multiplatform show.

“Audrina Patridge has built an enduring connection with audiences who have followed her journey for nearly two decades,” said Shane Carmichael, CEO and Co-Founder of Network One Digital. “What makes this partnership particularly exciting is the opportunity to introduce audiences to a new dimension of her personality while building a platform that reflects who she is today. Audrina brings an authenticity, relatability, and cultural relevance that are increasingly valuable in today’s media landscape.”

Travis Holden, Co-Founder of Network One Digital, added “Audrina brings a rare combination of experience, instinct, and an effortless on-screen presence that makes her a natural fit for this format. What excites us most is her willingness to take creative risks, embrace new ideas, and push beyond what audiences might expect. She’s been an incredible collaborator throughout the development process, and we’re excited to see this next chapter take shape.”

Amplitude Media Partners (AMP) has been retained to lead advertising sales for Say More, developing brand partnerships across the podcast’s audio and video distribution.

“Audrina has built an enduring relationship with an audience that has followed her through several different stages of life,” said Marques Pfaff, Managing Partner at Amplitude Media Partners. “Say More creates an opportunity for that audience to reconnect with her in a format that’s honest and highly personal, while also introducing a different side of Audrina to new viewers and listeners. AMP is beyond excited to support the launch and connect the show with advertisers that recognize the value of that authentic relationship.”

Full video episodes of Say More with Audrina Patridge will be available on YouTube and Spotify Video. Audio episodes will be distributed through Apple Podcasts, Spotify and all other major podcast platforms.

The official trailer is available now, with the first full episode premiering November 12. New episodes will be released weekly.

ABOUT SAY MORE WITH AUDRINA PATRIDGE

Say More with Audrina Patridge is a weekly podcast for curious minds hosted by television personality and author Audrina Patridge. Through candid conversations with celebrity friends, experts and fascinating guests, Patridge explores dating, relationships, motherhood, mental health, beauty, fashion, confidence, reinvention and life after reality television. Honest, warm, funny and occasionally provocative, Say More goes beyond the surface to uncover the stories and experiences behind the subjects everyone is already discussing.

ABOUT AUDRINA PATRIDGE

Audrina Patridge is a television personality, author and podcast host who rose to prominence as one of the original stars of MTV’s The Hills. She later appeared in The Hills: New Beginnings, competed on Dancing with the Stars, hosted NBC’s 1st Look and starred in the VH1 reality series Audrina. Patridge is also the author of the memoir Choices: To the Hills and Back Again and previously co-hosted Was It Real? The Hills Rewatch.

ABOUT NETWORK ONE DIGITAL

Network One Digital is a podcast production agency specializing in high-quality audio and video storytelling. Through creative development, production and strategic support, NOD works with creators, brands and organizations to build polished, engaging content designed to reach audiences across platforms.

ABOUT AMPLITUDE MEDIA PARTNERS

Amplitude Media Partners (AMP) provides revenue-generating solutions for independent creators through direct sales, programmatic access and operational support. AMP works with podcasters, video creators and networks to develop advertising partnerships, optimize revenue opportunities and support the continued growth of their content.

MEDIA CONTACT:

Marques Pfaff

marques@amplitudemediapartners.com

(608) 385-9108

Media Contact

Marques Pfaff, Amplitude Media Partners (AMP), 1 6083859108, marques@amplitudemediapartners.com, amplitudemediapartners.com 

Shane Carmichael, Network One Digital, shane@networkonedigital.com

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SOURCE Amplitude Media Partners (AMP)

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Nauticus Robotics, Inc. Announces Date for 2026 Third Quarter Earnings Conference Call

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HOUSTON, Nov. 11, 2026 /PRNewswire/ — Nauticus Robotics, Inc. (NASDAQ: KITT, “Nauticus” or “Company”), a leading innovator in autonomous subsea robotics and software solutions, today announced the Company’s schedule for conducting its financial and operating results call for the quarter ended September 30, 2026. 

The Company plans to host an earnings conference call on November 17, 2026 at 9:00 am Central Time.

To participate in the earnings conference call, participants should dial toll free at +1-833-461-5787, conference ID: 602 625 794, or access the listen-only webcast at the following link: https://events.q4inc.com/attendee/602625794. A link to the webcast will also be available on the Company’s investor relations website.

About Nauticus Robotics, Inc.

Nauticus Robotics, Inc. develops autonomous robots for the ocean industries. Autonomy requires the extensive use of sensors, artificial intelligence, and effective algorithms for perception and decision allowing the robot to adapt to changing environments. The company’s business model includes using robotic systems for service, selling vehicles and components, and licensing of related software to both the commercial and defense business sectors. Nauticus has designed and is currently testing and certifying a new generation of vehicles to reduce operational cost and gather data to maintain and operate a wide variety of subsea infrastructure. Besides a standalone service offering and forward-facing products, Nauticus’ approach to ocean robotics has also resulted in the development of a range of technology products for retrofit/upgrading traditional ROV operations and other third-party vehicle platforms. Nauticus’ services provide customers with the necessary data collection, analytics, and subsea manipulation capabilities to support and maintain assets while reducing their operational footprint, operating cost, and greenhouse gas emissions, to improve offshore health, safety, and environmental exposure. www.nauticusrobotics.com 

Cautionary Language Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Act”), and are intended to enjoy the protection of the safe harbor for forward-looking statements provided by the Act as well as protections afforded by other federal securities laws. Such forward-looking statements include but are not limited to: the expected timing of product commercialization or new product releases; customer interest in Nauticus’ products; estimated operating results and use of cash; and Nauticus’ use of and needs for capital. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events, or results of operations, are forward-looking statements. These statements may be preceded by, followed by, or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends,” or “continue” or similar expressions. Forward-looking statements inherently involve risks and uncertainties that may cause actual events, results, or performance to differ materially from those indicated by such statements. These forward-looking statements are based on Nauticus’ management’s current expectations and beliefs, as well as a number of assumptions concerning future events. There can be no assurance that the events, results, or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and Nauticus is not under any obligation and expressly disclaims any obligation, to update, alter, or otherwise revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports which Nauticus has filed or will file from time to time with the Securities and Exchange Commission (the “SEC”) for a more complete discussion of the risks and uncertainties facing the Company and that could cause actual outcomes to be materially different from those indicated in the forward-looking statements made by the Company, in particular the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in documents filed from time to time with the SEC, including Nauticus’ most recent Annual Report on Form 10-K filed with the SEC and Quarterly Reports on Form 10-Q filed with the SEC from time to time. Should one or more of these risks, uncertainties, or other factors materialize, or should assumptions underlying the forward-looking information or statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. The documents filed by Nauticus with the SEC may be obtained free of charge at the SEC’s website at www.sec.gov.

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SOURCE Nauticus Robotics, Inc.

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CAE reports second quarter fiscal 2027 results

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Revenue of $1,204.7 million vs. $1,236.6 million in prior year, down 2.6% year-over-yearEPS of $0.18 vs. $0.23 in prior year and adjusted EPS(1) of $0.33 vs. $0.28 in prior year Fiscal 2027 outlook raised for adjusted EPS(1) to a range of $1.28 to $1.35 and adjusted segment operating income margin(1) to a range of 14.9% to 15.4% Free cash flow(1) of $179.9 million and net debt-to-adjusted EBITDA(1) of 2.16xRepurchased 3.0 million common shares for $106.1 million year-to-date through the end of the second quarter  Transformation on track, including the expected sale of Flightscape for US$500 million

MONTREAL, Nov. 11, 2026 /PRNewswire/ — (Nasdaq: CAE) (TSX: CAE) – CAE Inc. (CAE or the Company) today reported its financial results for the fiscal second quarter ended September 30, 2026. For more information, please refer to the annex for the second quarter fiscal 2027 available at cae.com/investors.

“We delivered another solid quarter in Q2, with improved adjusted profitability, strong free cash flow and continued progress on our transformation priorities,” said Matthew Bromberg, CAE’s President and CEO. “Given our performance year-to-date and increased confidence in our ability to execute our second-half plan, we are raising our full-year fiscal 2027 outlook for adjusted EPS and adjusted segment operating income margin. We remain focused on advancing our transformation and building a higher-growth, higher-return CAE.

In Q2, Civil results were in line with our expectations, with strong business aviation performance and higher year‑over‑year utilization across both commercial and business aviation training offset by a lower contribution from Civil products. Defense delivered another strong quarter, with double-digit year-over-year growth in adjusted segment operating income and continued underlying margin expansion.

We also made progress across each of our three transformation priorities: portfolio, capital discipline, and operational performance. In October, we announced an agreement to sell Flightscape to SITA for US$500 million. We expect the transaction to close in the first half of calendar year 2027 and intend to deploy the proceeds in accordance with our disciplined capital allocation priorities, including funding our transformation, supporting growth in our core businesses, and returning capital to shareholders. In Q2, we accelerated our share repurchase activity, bringing year-to-date repurchases through the second quarter to approximately 3.0 million shares for $106.1 million.

Overall, our second quarter performance included strong execution, Defense margin expansion, higher free cash flow, increased share repurchases and meaningful progress on our transformation. We are building a more disciplined CAE, with stronger margins and cash generation supporting long-term value creation. We look forward to providing further details on our strategy, transformation and growth opportunities at CAE’s Analyst and Investor Day on February 25, 2027.”

(1) This press release includes non-IFRS financial measures, non-IFRS ratios, capital management measures and supplementary financial measures. These measures are not standardized financial measures prescribed under IFRS and therefore should not be confused with, or used as an alternative for, performance measures calculated according to IFRS. Furthermore, these measures should not be compared with similarly titled measures provided or used by other issuers. Refer to the “Non-IFRS and other financial measures” section of this press release for the definitions and a reconciliation of these measures to the most directly comparable measure under IFRS.

Fiscal 2027 outlook

The Company is increasing its fiscal 2027 outlook for adjusted EPS and adjusted segment operating income margin.

Fiscal 2027 consolidated financial outlook

Metric

Current outlook

Previous outlook

Revenue

Low-single digit percentage growth

Low-single digit percentage growth

Adjusted segment operating income margin(1)

14.9% to 15.4%

14.6% to 15.1%

Adjusted EPS(1)

$1.28 to $1.35

$1.21 to $1.28

Cash conversion rate(1)

85% to 95%

85% to 95%

In fiscal 2027, management continues to expect consolidated revenue to increase by a low-single digit percentage, with Civil revenue expected to be flat to slightly down and Defense expected to grow at a mid-single digit rate.

Management now expects fiscal 2027 adjusted segment operating income margin of 14.9% to 15.4%, up from 14.6% to 15.1% previously, reflecting higher expected margins in both Civil and Defense and increased confidence in the Company’s ability to execute its second-half plan. Adjusted EPS is now expected to be $1.28 to $1.35, up from $1.21 to $1.28 previously, reflecting the stronger operating outlook as well as lower expected finance expense and a lower effective tax rate.

In Defense, for the full year, CAE continues to expect higher year-over-year profitability, supported by bid discipline, structural cost reduction and strong program management. In Civil, for the full year, profitability is still expected to remain below prior-year levels, reflecting lower revenue, the near-term impact of network optimization actions and elevated investment levels intended to support stronger long-term performance.

The total cost of the transformation plan is anticipated to be approximately $200 million to $250 million, with approximately $100 million arising from non-cash charges. Of the total cost, $42.6 million was incurred in the second quarter of fiscal 2027, bringing the total costs incurred to date to $175.3 million. The majority of the remaining costs are expected to be incurred in fiscal 2027. We remain on track for our transformation targets, including $125 million to $150 million of annual transformation run-rate savings.

Ongoing geopolitical uncertainty in the Middle East continues to put pressure on the global aviation industry. The Company has undertaken mitigation actions, including redeploying certain training activities within its global network. To date, these actions have been effective at mitigating the direct operational impacts from the conflict. Our outlook assumes that these mitigation actions remain effective for the balance of fiscal 2027. However, an intensification of the conflict or a further deterioration in regional conditions, including sustained increases in fuel prices or disruptions to airline activity, customer operations, or supply chains, could result in additional pressure on performance.

This outlook is provided as at November 11, 2026, to assist analysts, investors and shareholders in forming their respective views on CAE’s expected performance for the fiscal year ending March 31, 2027. This outlook constitutes forward-looking information and is based on multiple estimates and assumptions, including those set out in the “Forward-Looking Statements” section below, and are subject to the risks and uncertainties summarized therein. As such, the reader is cautioned that using this information for other purposes may be inappropriate and these measures are subject to change as conditions evolve and actual results may differ, and such differences may be material. The Company cautions that the assumptions used to prepare the outlook could prove to be incorrect or inaccurate.

Consolidated results for Q2 fiscal 2027
Second quarter fiscal 2027 revenue was $1,204.7 million, compared to $1,236.6 million in the second quarter last year. Second quarter EPS was $0.18 compared to $0.23 last year. Adjusted EPS in the second quarter was $0.33, compared to $0.28 last year.

Operating income this quarter was $114.4 million (9.5% of revenue(1)). This compares to $155.3 million (12.6% of revenue) last year. This period’s operating income included restructuring costs of $42.6 million. Second quarter adjusted segment operating income was $179.3 million (14.9% of revenue(1)) compared to $176.7 million (14.3% of revenue) last year. All financial information is in Canadian dollars unless otherwise indicated.

Summary of consolidated results

(amounts in millions, except per share amounts)

Q2-2027

Q2-2026

Variance %

Revenue

$

1,204.7

$

1,236.6

(2.6 %)

Operating income

$

114.4

$

155.3

(26.3 %)

Adjusted segment operating income(1)

$

179.3

$

176.7

1.5 %

As a % of revenue(1)

%

14.9

%

14.3

Net income attributable to equity holders of the Company

$

58.6

$

73.9

(20.7 %)

Earnings per share (EPS)

$

0.18

$

0.23

(21.7 %)

Adjusted EPS(1)

$

0.33

$

0.28

17.9 %

Adjusted order intake(1)

$

1,166.6

$

1,148.6

1.6 %

Adjusted backlog(1)

$

19,576.7

$

19,637.1

(0.3 %)

(1) This press release includes non-IFRS financial measures, non-IFRS ratios, capital management measures and supplementary financial measures. These measures are not standardized financial measures prescribed under IFRS and therefore should not be confused with, or used as an alternative for, performance measures calculated according to IFRS. Furthermore, these measures should not be compared with similarly titled measures provided or used by other issuers. Refer to the “Non-IFRS and other financial measures” section of this press release for the definitions and a reconciliation of these measures to the most directly comparable measure under IFRS.

Civil Aviation (Civil)
Second quarter Civil revenue was $652.3 million compared to $670.0 million in the second quarter last year. Operating income was $61.3 million (9.4% of revenue) compared to $108.7 million (16.2% of revenue) in the same quarter last year. Adjusted segment operating income was $103.9 million (15.9% of revenue) compared to $124.1 million (18.5% of revenue) in the second quarter last year. The decrease in adjusted segment operating income was mainly due to a lower contribution from simulator sales, primarily due to a lower contribution from contracts accounted for based on progress toward completion, and lower contribution from the sale of simulator capacity structured as finance lease arrangements. The decrease was also due to higher selling, general and administrative expenses. The decrease was partially offset by a higher contribution from business training services, driven by higher utilization. During the quarter, Civil delivered 11 full-flight simulators (FFSs) and second quarter Civil training centre utilization was 65.0%.

During the quarter, Civil signed training solutions contracts valued at $580.6 million for a range of long-term commercial and business aviation training agreements, including 7 FFS sales.

The Civil book-to-sales ratio(1) was 0.89 times for the quarter and 1.07 times for the last 12 months. The Civil adjusted backlog at the end of the quarter was $8.3 billion.

Summary of Civil Aviation results

(amounts in millions)

Q2-2027

Q2-2026

Variance %

Revenue

$

652.3

$

670.0

(2.6 %)

Operating income

$

61.3

$

108.7

(43.6 %)

Adjusted segment operating income

$

103.9

$

124.1

(16.3 %)

As a % of revenue

%

15.9

%

18.5

Adjusted order intake

$

580.6

$

592.8

(2.1 %)

Adjusted backlog

$

8,292.0

$

8,477.1

(2.2 %)

Supplementary non-financial information

Simulator equivalent unit

318

321

(0.9 %)

FFSs in CAE’s network

373

375

(0.5 %)

FFS deliveries

11

12

(8.3 %)

Utilization rate

%

65.0

%

61.9

5.0 %

Defense and Security (Defense)
Second quarter Defense revenue was $552.4 million compared to $566.6 million in the second quarter last year. Operating income was $53.1 million (9.6% of revenue) compared to $46.6 million (8.2% of revenue) in the same quarter last year. Adjusted segment operating income was $75.4 million (13.6% of revenue), compared to $52.6 million (9.3% of revenue) in the second quarter last year. The increase in adjusted segment operating income was mainly due to higher profitability from products recognized upon delivery and increased profitability on our contracts in North America. The increase was also due to the recognition of $11 million in investment tax credits identified and claimed in the current period in respect of prior years.

Defense booked orders for $586.0 million this quarter for a book-to-sales ratio of 1.06 times. The ratio for the last 12 months was 1.03 times. The Defense adjusted backlog, including unfunded contract awards and CAE’s interest in joint ventures, at the end of the quarter was $11.3 billion.

Summary of Defense and Security results

(amounts in millions)

Q2-2027

Q2-2026

Variance %

Revenue

$

552.4

$

566.6

(2.5 %)

Operating income

$

53.1

$

46.6

13.9 %

Adjusted segment operating income

$

75.4

$

52.6

43.3 %

As a % of revenue

%

13.6

%

9.3

Adjusted order intake

$

586.0

$

555.8

5.4 %

Adjusted backlog

$

11,284.7

$

11,160.0

1.1 %

Additional financial highlights

Summary of additional financial highlights

(amounts in millions)

Q2-2027

Q2-2026

Variance %

Net cash provided by operating activities

$

215.5

$

214.0

0.7 %

Free cash flow(1)

$

179.9

$

109.8

63.8 %

Capital expenditures

$

48.9

$

107.6

(55.8 %)

Adjusted return on invested capital (ROIC)(1)

%

7.7

%

7.6

Net debt-to-adjusted EBITDA(1)

2.16

2.66

Finance expense – net this quarter was $44.6 million, down from $56.9 million in the second quarter last year. The year-over-year decrease was mainly due to lower finance expense on long-term debt reflecting a lower level of borrowings during the period.

Income tax expense this quarter amounted to $9.1 million, representing an effective tax rate of 13.0%, compared to 22.7% for the second quarter last year. The adjusted effective tax rate(1), which is the income tax rate used to determine adjusted net income(1) and adjusted EPS, was 18.7% this quarter compared to 22.9% in the second quarter of last year. The decrease in the adjusted effective tax rate was mainly attributable to the change in the mix of income from various jurisdictions.

Net cash provided by operating activities was $215.5 million for the quarter, compared to $214.0 million in the second quarter last year. Free cash flow(1) was $179.9 million for the quarter compared to $109.8 million in the second quarter last year. The increase was mainly due to lower capital expenditures.

Capital expenditures(1) totaled $48.9 million this quarter compared to $107.6 million in the second quarter of fiscal 2026.

Net debt(1) at the end of the quarter was $2,534.6 million for a net debt-to-adjusted EBITDA(1) of 2.16 times. This compares to net debt of $2,646.2 million and a net debt-to-adjusted EBITDA of 2.27 times at the end of the preceding quarter.

Adjusted return on invested capital(1) was 7.7% this quarter compared to 7.5% last quarter and 7.6% in the second quarter last year.

During the quarter, CAE repurchased and cancelled a total of 1,908,861 common shares under its normal course issuer bid (NCIB), at a weighted average price of $35.12 per common share for a total consideration of $67.1 million.

(1) This section of this press release includes non-IFRS financial measures, non-IFRS ratios, capital management measures, and supplementary financial measures. These measures are not standardized financial measures prescribed under IFRS and therefore should not be confused with, or used as an alternative for, performance measures calculated according to IFRS. Furthermore, these measures should not be compared with similarly titled measures provided or used by other issuers. Refer to the “Non-IFRS and other financial measures” section of this press release for the definitions and a reconciliation of these measures to the most directly comparable measure under IFRS.

Potential transition to U.S. GAAP
As part of our ongoing transformation and in an effort to align the Company’s financial reporting with aerospace and defense peers, CAE is exploring a potential transition from IFRS to United States generally accepted accounting principles (“U.S. GAAP”). If adopted, the change would be applied for the fourth quarter and fiscal year ending March 31, 2027, on a full retrospective basis. We have established a project team and a project plan, and we are currently evaluating the potential impact that a transition to U.S. GAAP may have on our consolidated financial statements.

Conference call Q2 FY2027
Calin Rovinescu, Executive Chairman of the Board; Matthew Bromberg, CAE President and CEO; Ryan McLeod, Chief Financial Officer; and Andrew Arnovitz, Chief Strategy Officer will conduct an earnings conference call tomorrow at 8:00 a.m. ET. The call is intended for analysts and institutional investors. Participants can listen to the conference by dialing + 1-800-990-2777 (ID: 52563). The conference call will also be audio webcast live at www.cae.com.

Caution concerning limitations of summary earnings press release
This summary earnings press release contains limited information meant to assist the reader in assessing CAE’s performance, but it is not a suitable source of information for readers who are unfamiliar with CAE and is not in any way a substitute for the Company’s financial statements, notes to the financial statements, and MD&A reports. 

Caution concerning forward-looking statements
This press release includes forward-looking statements about our activities, events and developments that we expect to or anticipate may occur in the future including, for example, statements about our fiscal 2027 consolidated financial outlook, long-term transformation plan targets to fiscal 2030, transformation costs and savings, vision, strategies, market trends and outlook, future revenues, earnings, cash flow growth, profit trends, growth capital spending, expansions and new initiatives, including initiatives that pertain to sustainability matters, financial obligations, available liquidities, expected sales, general economic and political outlook, inflation trends, prospects and trends of an industry, expected annual recurring cost savings from operational excellence programs, the expected total expenses and annual recurring savings from our transformation plan, our management of the supply chain, estimated addressable markets, demands for CAE’s products and services, our access to capital resources, our financial position, the expected accretion in various financial metrics, the expected capital returns to shareholders, our business outlook, business opportunities, objectives, development, plans, growth strategies and other strategic priorities, our competitive and leadership position in our markets, the expansion of our market shares, CAE’s ability and preparedness to respond to demand for new technologies, the sustainability of our operations, the potential transition of the presentation of the Company’s financial statements to U.S. GAAP, including the anticipated timing and expected benefits thereof, the proposed sale of Flightscape to SITA (the “Transaction”), including the expected proceeds and use of proceeds, the anticipated timing of closing, the receipt of regulatory approvals, the anticipated benefits of the Transaction to CAE, including on its capital allocation and growth prospects, and other statements that are not historical facts.

Since forward-looking statements and information relate to future events or future performance and reflect current expectations or beliefs regarding future events, they are typically identified by words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “likely”, “may”, “plan”, “seek”, “should”, “will”, “strategy”, “future” or the negative thereof or other variations thereon suggesting future outcomes or statements regarding an outlook. All such statements constitute “forward-looking statements” within the meaning of applicable Canadian securities legislation and “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995.

By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties associated with our business which may cause actual results in future periods to differ materially from results indicated in forward-looking statements. While these statements are based on management’s expectations and assumptions regarding historical trends, current conditions and expected future developments, as well as other factors that we believe are reasonable and appropriate in the circumstances, readers are cautioned not to place undue reliance on these forward-looking statements as there is a risk that they may not be accurate. The forward-looking statements contained in this press release describe our expectations as of November 11, 2026 and, accordingly, are subject to change after such date. Except as required by law, we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. The forward-looking information and statements contained in this press release are expressly qualified by this cautionary statement. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this press release. While we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. Except as otherwise indicated by CAE, forward-looking statements do not reflect the potential impact of any special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may occur after November 11, 2026. The financial impact of these transactions and special items can be complex and depends on the facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way or in the same way we present known risks affecting our business. Forward-looking statements are presented in this press release for the purpose of assisting investors and others in understanding certain key elements of our expected fiscal 2027 financial results and in obtaining a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

Material assumptions
The forward-looking statements set out in this press release are based on certain assumptions including, without limitation: the prevailing market conditions, geopolitical instability including the ongoing military conflicts in the Middle East and the rapidly evolving trade and tariff environment, customer receptivity to our training and operational support solutions, the accuracy of our estimates of addressable markets and market opportunity, the realization of anticipated annual recurring cost savings and other intended benefits from restructuring initiatives, transformation plans or operational excellence programs, the ability to respond to anticipated inflationary pressures and our ability to pass along rising costs through increased prices, the actual impact to supply, production levels, and costs from global supply chain logistics challenges, the stability of foreign exchange rates, the ability to hedge exposures to fluctuations in interest rates and foreign exchange rates, the availability of borrowings to be drawn down under, and the utilization, of one or more of our senior credit agreements, our available liquidity from cash and cash equivalents, undrawn amounts on our revolving credit facility, the balance available under our receivable purchase facility, the assumption that our cash flows from operations and continued access to debt funding will be sufficient to meet financial requirements in the foreseeable future, access to expected capital resources within anticipated timeframes, no material financial, operational or competitive consequences from changes in regulations affecting our business, our ability to retain and attract new business, our ability to effectively execute on the opportunities identified as part of our transformation plan to simplify our structure, sharpen our focus and strengthen execution, the realization of the expected strategic, financial and other benefits of our multi-year transformation plan in the timeframe anticipated and at expected cost levels, the satisfaction of the closing conditions to the Transaction, including the receipt of required regulatory approvals, in a timely manner and on terms acceptable to CAE, the absence of material adjustments to the purchase price and the realization of the anticipated benefits of the Transaction. Air travel is a major driver for CAE’s business and management relies on analysis from the International Air Transport Association (IATA) to inform its assumptions about the rate and profile of growth in its key civil aviation market. Forward-looking statements relating to the transformation plan targets to fiscal 2030 are also based on the assumptions underlying management’s long-term targets disclosed as part of the transformation plan set out in CAE’s press release dated May 21, 2026, available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov). Accordingly, the assumptions outlined in this press release and, consequently, the forward‑looking statements based on such assumptions, may turn out to be inaccurate. For additional information, including with respect to other assumptions underlying the forward-looking statements made in this press release, refer to Section 9 “Business risk and uncertainty” of our MD&A for the year ended March 31, 2026 available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov).

Material risks
Important risks that could cause actual results or events to differ materially from those expressed in or implied by our forward-looking statements are set out in CAE’s MD&A for the fiscal year ended March 31, 2026 and MD&A for the three months ended September 30, 2026, available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov). In addition, forward-looking statements relating to the transformation plan targets to fiscal 2030 are subject to the material risks and uncertainties underlying management’s long-term targets disclosed as part of the transformation plan set out in CAE’s press release dated May 21, 2026, available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov). Readers are cautioned that any of the disclosed risks could have a material adverse effect on our forward-looking statements. We caution that the disclosed list of risk factors is not exhaustive and other factors could also adversely affect our results.

Non-IFRS and other financial measures
This press release includes non-IFRS financial measures, non-IFRS ratios, capital management measures and supplementary financial measures. These measures are not standardized financial measures prescribed under IFRS and therefore should not be confused with, or used as an alternative for, performance measures calculated according to IFRS. Furthermore, these measures should not be compared with similarly titled measures provided or used by other issuers. Management believes that these measures provide additional insight into our operating performance and trends and facilitate comparisons across reporting periods.

Certain non-IFRS and other financial measures are provided on a consolidated basis and separately for each of our segments (Civil Aviation and Defense and Security) since we analyze their results and performance separately.

Reconciliations and calculations of non-IFRS measures to the most directly comparable measures under IFRS are also set forth below in the section “Reconciliations and Calculations of this press release”. 

Changes to non-IFRS measures
As announced in May 2026, we revised the composition of certain non-IFRS measures in the first quarter of fiscal 2027:

Adjusted segment operating income was revised to exclude the amortization of acquisition-related intangible assets; andAdjusted net income was revised to exclude the amortization of acquisition-related intangible assets; which also impacts the determination of adjusted EPS.

In addition, we refined the measurement of simulator utilization rates, full-flight simulators (FFSs) in CAE’s network and Simulator equivalent unit (SEU), which are no longer adjusted for factors such as relocations, downtime or storage.

Comparative figures have been adjusted to conform to these changes.

Performance measures
Gross profit margin (or gross profit as a % of revenue)
Gross profit margin is a supplementary financial measure calculated by dividing our gross profit by revenue for a given period. We track it because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods.

Operating income margin (or operating income as a % of revenue)
Operating income margin is a supplementary financial measure calculated by dividing our operating income by revenue for a given period. We track it because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods.

Adjusted segment operating income or loss
Adjusted segment operating income or loss is a non-IFRS financial measure that gives us an indication of the profitability of each segment because it does not include the impact of any items not specifically related to the segment’s performance. We calculate adjusted segment operating income by taking operating income and adjusting for restructuring, integration and acquisition costs, amortization of acquisition-related intangible assets, and impairments and other gains and losses arising from significant strategic transactions or specific events. Impairments and other gains and losses arising from significant strategic transactions or specific events consist of the executive management transition costs (as described in Section 5.4 of the MD&A for the year ended March 31, 2026 and Section 5.6 of the MD&A for the year ended March 31, 2025), the gain on fair value remeasurement of SIMCOM (as described in Note 7 of our consolidated financial statements for the year ended March 31, 2025) and the shareholder matters (as described in Section 5.5 of the MD&A for the year ended March 31, 2025). We track adjusted segment operating income because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods. Adjusted segment operating income on a consolidated basis is a total of segments measure since it is the profitability measure employed by management for making decisions about allocating resources to segments and assessing segment performance.

Adjusted segment operating income margin (or adjusted segment operating income as a % of revenue)
Adjusted segment operating income margin is a non-IFRS ratio calculated by dividing our adjusted segment operating income by revenue for a given period. We track it because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods.

Adjusted effective tax rate
Adjusted effective tax rate is a supplementary financial measure that represents the effective tax rate on adjusted net income or loss. It is calculated by dividing our income tax expense by our earnings before income taxes, adjusting for the same items used to determine adjusted net income or loss. We track it because we believe it provides an enhanced understanding of the impact of changes in income tax rates and the mix of income on our operating performance and facilitates the comparison across reporting periods.

Adjusted net income or loss
Adjusted net income or loss is a non-IFRS financial measure we use as an alternate view of our operating results. We calculate it by taking our net income attributable to equity holders of the Company from continuing operations and adjusting for restructuring, integration and acquisition costs, amortization of acquisition-related intangible assets, and impairments and other gains and losses arising from significant strategic transactions or specific events, after tax, as well as significant one-time tax items. Impairments and other gains and losses arising from significant strategic transactions or specific events consist of the executive management transition costs (as described in Section 5.4 of the MD&A for the year ended March 31, 2026 and Section 5.6 of the MD&A for the year ended March 31, 2025), the gain on fair value remeasurement of SIMCOM (as described in Note 7 of our consolidated financial statements for the year ended March 31, 2025) and the shareholder matters (as described in Section 5.5 of the MD&A for the year ended March 31, 2025). We track adjusted net income because we believe it provides an enhanced understanding of our operating performance and facilitates the comparison across reporting periods.

Adjusted earnings or loss per share (EPS)
Adjusted earnings or loss per share is a non-IFRS ratio calculated by dividing adjusted net income or loss by the weighted average number of diluted shares. We track it because we believe it provides an enhanced understanding of our operating performance on a per share basis and facilitates the comparison across reporting periods.

EBITDA and Adjusted EBITDA
EBITDA is a non-IFRS financial measure which comprises net income or loss from continuing operations before income taxes, finance expense – net, depreciation and amortization. Adjusted EBITDA further adjusts for restructuring, integration and acquisition costs, and impairments and other gains and losses arising from significant strategic transactions or specific events. Impairments and other gains and losses arising from significant strategic transactions or specific events consist of the executive management transition costs (as described in Section 5.4 of the MD&A for the year ended March 31, 2026 and Section 5.6 of the MD&A for the year ended March 31, 2025), the gain on fair value remeasurement of SIMCOM (as described in Note 7 of our consolidated financial statements for the year ended March 31, 2025) and the shareholder matters (as described in Section 5.5 of the MD&A for the year ended March 31, 2025). We use EBITDA and adjusted EBITDA to evaluate our operating performance, by eliminating the impact of non-operational or non-cash items.

Free cash flow
Free cash flow is a non-IFRS financial measure that assesses our ability to generate cash from our ongoing operations after considering ongoing investments required for property, plant and equipment and intangible assets. It demonstrates our ability to generate cash to repay debt obligations, make strategic investments and return cash to shareholders through either dividends or share repurchases. We use it as an indicator of our financial strength and liquidity. We calculate it by taking the net cash generated by our continuing operating activities, subtracting property, plant and equipment expenditures, intangible assets expenditures and other investing activities and adding proceeds from the disposal of property, plant and equipment, dividends received from equity accounted investees and proceeds, net of payments, from equity accounted investees.

Cash conversion rate
Cash conversion rate is a non-IFRS ratio calculated by dividing free cash flow by adjusted net income. We use it to assess our performance in cash flow generation and as a basis for evaluating our capitalization structure.

Liquidity and capital structure measures
Invested capital
Invested capital is a non-IFRS financial measure we use to evaluate and monitor how much we are investing in our business:

For the Company as a whole, we take total assets (not including cash and cash equivalents), and subtract total liabilities (not including long-term debt and the current portion of long-term debt);For each segment, we take the total assets (not including cash and cash equivalents, tax accounts, employee benefits assets and other non-operating assets), and subtract total liabilities (not including tax accounts, long‑term debt and the current portion of long‑term debt, royalty obligations, employee benefit obligations and other non-operating liabilities).

Adjusted return on invested capital (ROIC)
Adjusted ROIC is a non-IFRS ratio calculated over a rolling four-quarter period by taking adjusted net operating income after tax, divided by the average invested capital from continuing operations. Adjusted net operating income after tax is calculated by taking adjusted net income and further adjusting for finance expense – net, after tax. We use adjusted ROIC to evaluate the profitability of our invested capital.

Net debt
Net debt is a capital management measure we use to monitor how much debt we have after taking into account cash and cash equivalents. We use it as an indicator of our overall financial position, and calculate it by taking our total long-term debt, including the current portion of long-term debt, and subtracting cash and cash equivalents.

Net debt-to-EBITDA and net debt-to-adjusted EBITDA
Net debt-to-EBITDA and net debt-to-adjusted EBITDA are non-IFRS ratios calculated as net debt divided by the last twelve months EBITDA (or adjusted EBITDA). We use net debt-to-EBITDA and net debt-to-adjusted EBITDA because they reflect our ability to service our debt obligations.

Growth measures
Adjusted order intake
Adjusted order intake is a supplementary financial measure that represents the expected value of orders we have received:

For the Civil Aviation segment, we consider an item part of our adjusted order intake when we have a legally binding commercial agreement with a client that includes enough detail about each party’s obligations to form the basis for a contract. Additionally, expected future revenues from customers under short-term and long-term training contracts are included when these customers commit to pay us training fees, or when we reasonably expect the revenue to be generated;For the Defense and Security segment, we consider an item part of our adjusted order intake when we have a legally binding commercial agreement with a client that includes enough detail about each party’s obligations to form the basis for a contract. Defense and Security contracts are usually executed over a long-term period but some of them must be renewed each year. For this segment, we only include a contract item in adjusted order intake when the customer has authorized the contract item and has received funding for it.

Adjusted backlog
Adjusted backlog is a supplementary financial measure that represents expected future revenues and includes obligated backlog, joint venture backlog and unfunded backlog and options:

Obligated backlog represents the value of our adjusted order intake not yet executed and is calculated by adding the adjusted order intake of the current period to the balance of the obligated backlog at the end of the previous fiscal year, subtracting the revenue recognized in the current period and adding or subtracting backlog adjustments. If the amount of an order already recognized in a previous fiscal year is modified, the backlog is revised through adjustments;Joint venture backlog is obligated backlog that represents the expected value of our share of orders that our joint ventures have received but have not yet executed. Joint venture backlog is determined on the same basis as obligated backlog described above, but excludes any portion of orders that have been directly subcontracted to a CAE subsidiary, which are already reflected in the determination of obligated backlog;Unfunded backlog represents legally binding Defense and Security orders with the U.S. government that we have received but have not yet executed and for which funding authorization has not yet been obtained. The uncertainty relates to the timing of the funding authorization, which is influenced by the government’s budget cycle, based on a September year-end. Options are included in adjusted backlog when there is a high probability of being exercised, which we define as at least 80% probable, but multi‑award indefinite-delivery/indefinite‑quantity (ID/IQ) contracts are excluded. When an option is exercised, it is considered adjusted order intake in that period, and it is removed from unfunded backlog and options.

Book-to-sales ratio
The book-to-sales ratio is a supplementary financial measure calculated by dividing adjusted order intake by revenue in a given period. We use it to monitor the level of future growth of the business over time.

Supplementary non-financial information definitions
Full-flight simulators (FFSs) in CAE’s network
A FFS is a full-size replica of a specific make, model and series of an aircraft cockpit, including a motion system. In our count of FFSs in the network, we generally only include FFSs that are of the highest fidelity and do not include any fixed based training devices, or other lower-level devices, as these are typically used in addition to FFSs in the same approved training programs.

Simulator equivalent unit (SEU)
SEU is a measure we use to show the total average number of FFSs available to generate earnings during the period. For example, in the case of a 50/50 flight training joint venture, we will report only 50% of the FFSs under this joint venture as a SEU.

Utilization rate
Utilization rate is a measure we use to assess the performance of our Civil simulator training network. While utilization rate does not perfectly correlate to revenue recognized, we track it, together with other measures, because we believe it is an indicator of our operating performance. We calculate it by taking the number of training hours sold on our simulators during the period divided by the practical training capacity available for the same period.

Forward-looking financial measures
Transformation run-rate savings
Transformation run-rate savings is a supplementary financial measure we use to show the targeted total cost savings from the activities and initiatives associated with our transformation plan and their anticipated contribution to adjusted segment operating income. We use it to track and measure the success of our transformation plan. 

Reconciliations and Calculations
Reconciliation of adjusted segment operating income

(amounts in millions)

 

Civil Aviation

Defense

and Security

Total

Three months ended September 30

2026

2025

2026

2025

2026

2025

Operating income

$

61.3

$

108.7

$

53.1

$

46.6

$

114.4

$

155.3

Restructuring, integration and acquisition costs

26.5

—

16.1

—

42.6

—

Amortization of acquisition-related intangible assets

16.1

15.4

6.2

6.0

22.3

21.4

Adjusted segment operating income

$

103.9

$

124.1

$

75.4

$

52.6

$

179.3

$

176.7

Reconciliation of adjusted net income and adjusted EPS

Three months ended
September 30

(amounts in millions, except per share amounts)

2026

2025

Net income attributable to equity holders of the Company

$

58.6

$

73.9

Restructuring, integration and acquisition costs, after tax

31.8

—

Amortization of acquisition-related intangible assets, after tax

17.0

16.3

Adjusted net income

$

107.4

$

90.2

Average number of shares outstanding (diluted)

321.3

322.2

Adjusted EPS

$

0.33

$

0.28

Calculation of adjusted effective tax rate

Three months ended

September 30

(amounts in millions, except effective tax rates)

2026

2025

Earnings before income taxes

$

69.8

$

98.4

Restructuring, integration and acquisition costs

42.6

—

Amortization of acquisition-related intangible assets

22.3

21.4

Adjusted earnings before income taxes

$

134.7

$

119.8

Income tax expense

$

9.1

$

22.3

Tax impact on restructuring, integration and acquisition costs

10.8

—

Tax impact on amortization of acquisition-related intangible assets

5.3

5.1

Adjusted income tax expense

$

25.2

$

27.4

Effective tax rate

%

13.0

%

22.7

Adjusted effective tax rate

%

18.7

%

22.9

Reconciliation of free cash flow

Three months ended
September 30

(amounts in millions)

2026

2025

Cash provided by operating activities*

$

170.4

$

186.1

Changes in non-cash working capital

45.1

27.9

Net cash provided by operating activities

$

215.5

$

214.0

Property, plant and equipment expenditures

(38.7)

(87.6)

Intangible assets expenditures

(10.2)

(20.0)

Proceeds from the disposal of property, plant and equipment

2.8

—

Net proceeds from (payments to) equity accounted investees

0.1

(5.0)

Dividends received from equity accounted investees

10.3

13.9

Other investing activities

0.1

(5.5)

Free cash flow

$

179.9

$

109.8

* before changes in non-cash working capital

Reconciliation of EBITDA, adjusted EBITDA, net debt-to-EBITDA and net debt-to-adjusted EBITDA

Last twelve months ended

September 30

(amounts in millions, except net debt-to-EBITDA ratios)

2026

2025

Operating income

$

524.4

$

791.6

Depreciation and amortization

474.6

444.5

EBITDA

$

999.0

$

1,236.1

Restructuring, integration and acquisition costs

175.3

—

Impairments and other gains and losses arising from

significant strategic transactions or specific events:

Executive management transition costs

—

22.3

Gain on fair value remeasurement of SIMCOM

—

(72.6)

Shareholder matters

—

10.6

Adjusted EBITDA

$

1,174.3

$

1,196.4

Net debt

$

2,534.6

$

3,186.5

Net debt-to-EBITDA

2.54

2.58

Net debt-to-adjusted EBITDA

2.16

2.66

Reconciliation of invested capital

As at September 30

As at March 31

(amounts in millions)

2026

2026

Current assets

$

2,156.5

$

2,265.2

Less: cash and cash equivalents

(570.5)

(552.4)

Current liabilities

(2,586.6)

(2,361.3)

Less: current portion of long-term debt

534.0

252.0

Non-cash working capital

$

(466.6)

$

(396.5)

Property, plant and equipment

3,001.3

2,993.0

Intangible assets

3,681.0

3,692.2

Other long-term assets

2,249.5

2,197.4

Other long-term liabilities

(411.1)

(416.2)

Invested capital

$

8,054.1

$

8,069.9

Calculation of adjusted ROIC

Last twelve months ended

September 30

(amounts in millions)

2026

2025

Adjusted net income

$

470.8

$

446.9

Finance expense – net, after tax

152.6

167.9

Adjusted net operating income, after tax

$

623.4

$

614.8

Average invested capital

$

8,126.5

$

8,073.5

Adjusted ROIC

%

7.7

%

7.6

For non-IFRS and other financial measures monitored by CAE, and a reconciliation of such measures to the most directly comparable measure under IFRS, please refer to Section 9 of CAE’s MD&A for the quarter ended September 30, 2026 (which is incorporated by reference into this press release) available on our website (www.cae.com), SEDAR+ (www.SEDARplus.ca) and EDGAR (www.sec.gov).

Consolidated Income Statement

(Unaudited)

Three months ended

September 30

Six months ended

September 30

(amounts in millions of Canadian dollars, except per share amounts)

2026

2025

2026

2025

Revenue

$

1,204.7

$

1,236.6

$

2,378.1

$

2,335.2

Cost of sales

864.8

917.3

1,695.3

1,707.6

Gross profit

$

339.9

$

319.3

$

682.8

$

627.6

Research and development expenses

33.0

37.0

73.3

73.7

Selling, general and administrative expenses

163.1

148.3

346.0

307.7

Other (gains) and losses

3.6

(5.4)

5.2

(5.4)

Share of after-tax profit of equity accounted investees

(16.8)

(15.9)

(33.8)

(37.5)

Restructuring, integration and acquisition costs

42.6

—

90.9

—

Operating income

$

114.4

$

155.3

$

201.2

$

289.1

Finance expense – net

44.6

56.9

90.1

111.5

Earnings before income taxes

$

69.8

$

98.4

$

111.1

$

177.6

Income tax expense

9.1

22.3

17.8

41.3

Net income

$

60.7

$

76.1

$

93.3

$

136.3

Attributable to:

Equity holders of the Company

$

58.6

$

73.9

$

89.6

$

131.1

Non-controlling interests

2.1

2.2

3.7

5.2

Earnings per share attributable to equity holders of the Company

Basic and diluted

$

0.18

$

0.23

$

0.28

$

0.41

Consolidated Statement of Comprehensive Income

(Unaudited)

Three months ended

September 30

Six months ended

September 30

(amounts in millions of Canadian dollars)

2026

2025

2026

2025

Net income

$

60.7

$

76.1

$

93.3

$

136.3

Items that may be reclassified to net income

Foreign currency exchange differences on translation of foreign operations

$

16.2

$

121.5

$

125.3

$

(97.3)

Net (loss) gain on hedges of net investment in foreign operations

(6.6)

(48.6)

(39.1)

64.3

Reclassification to income of gains on foreign currency exchange differences

—

(2.0)

—

(3.7)

Net (loss) gain on cash flow hedges

(2.3)

(12.2)

(12.2)

6.6

Reclassification to income of losses on cash flow hedges

4.1

6.2

9.0

4.9

Income taxes

(1.7)

2.0

(2.2)

(2.7)

$

9.7

$

66.9

$

80.8

$

(27.9)

Items that will never be reclassified to net income

Remeasurement of defined benefit pension plan obligations

$

29.9

$

27.3

$

55.8

$

54.0

Income taxes

(7.9)

(7.2)

(14.8)

(14.3)

$

22.0

$

20.1

$

41.0

$

39.7

Other comprehensive income

$

31.7

$

87.0

$

121.8

$

11.8

Total comprehensive income

$

92.4

$

163.1

$

215.1

$

148.1

Attributable to:

Equity holders of the Company

$

90.2

$

159.6

$

210.6

$

143.6

Non-controlling interests

2.2

3.5

4.5

4.5

Consolidated Statement of Financial Position

(Unaudited)

September 30

2026

March 31

2026

(amounts in millions of Canadian dollars)

Assets

Cash and cash equivalents

$

570.5

$

552.4

Accounts receivable

502.6

624.3

Contract assets

460.9

485.3

Inventories

449.8

454.8

Prepayments

93.1

77.2

Income taxes recoverable

72.8

61.5

Derivative financial assets

6.8

9.7

Total current assets

$

2,156.5

$

2,265.2

Property, plant and equipment

3,001.3

2,993.0

Right-of-use assets

697.2

743.4

Intangible assets

3,681.0

3,692.2

Investment in equity accounted investees

598.9

572.7

Employee benefits assets

90.6

44.5

Deferred tax assets

144.6

147.6

Derivative financial assets

0.5

0.6

Other non-current assets

717.7

688.6

Total assets

$

11,088.3

$

11,147.8

Liabilities and equity

Accounts payable and accrued liabilities

$

843.0

$

935.1

Provisions

60.0

42.8

Income taxes payable

18.4

20.0

Contract liabilities

1,093.5

1,086.9

Current portion of long-term debt

534.0

252.0

Derivative financial liabilities

37.7

24.5

Total current liabilities

$

2,586.6

$

2,361.3

Provisions

11.4

11.2

Long-term debt

2,571.1

2,982.2

Employee benefits obligations

103.4

106.1

Deferred tax liabilities

40.4

38.3

Derivative financial liabilities

23.0

14.6

Other non-current liabilities

232.9

246.0

Total liabilities

$

5,568.8

$

5,759.7

Equity

Share capital

$

2,397.2

$

2,382.2

Contributed surplus

95.2

96.8

Accumulated other comprehensive income

427.2

347.2

Retained earnings

2,524.2

2,478.6

Equity attributable to equity holders of the Company

$

5,443.8

$

5,304.8

Non-controlling interests

75.7

83.3

Total equity

$

5,519.5

$

5,388.1

Total liabilities and equity

$

11,088.3

$

11,147.8

Consolidated Statement of Changes in Equity

(Unaudited)

Attributable to equity holders of the Company

Six months ended September 30, 2026

Common shares

Accumulated other

(amounts in millions of Canadian dollars,

Number of

Stated

Contributed

comprehensive

Retained

Non-controlling

Total

except number of shares)

shares

value

surplus

income

earnings

Total

interests

equity

Balances as at March 31, 2026

321,734,387

$

2,382.2

$

96.8

$

347.2

$

2,478.6

$

5,304.8

$

83.3

$

5,388.1

Net income

—

$

—

$

—

$

—

$

89.6

$

89.6

$

3.7

$

93.3

Other comprehensive income

—

—

—

80.0

41.0

121.0

0.8

121.8

Total comprehensive income

—

$

—

$

—

$

80.0

$

130.6

$

210.6

$

4.5

$

215.1

Exercise of stock options

549,295

22.4

(5.0)

—

—

17.4

—

17.4

Settlement of equity-settled awards

500,351

15.1

(15.1)

—

—

—

—

—

Repurchase and cancellation of common shares

(3,016,140)

(22.5)

—

—

(85.0)

(107.5)

—

(107.5)

Equity-settled share-based payments expense, after tax

—

—

18.5

—

—

18.5

—

18.5

Transactions with non-controlling interests

—

—

—

—

—

—

(12.1)

(12.1)

Balances as at September 30, 2026

319,767,893

$

2,397.2

$

95.2

$

427.2

$

2,524.2

$

5,443.8

$

75.7

$

5,519.5

Attributable to equity holders of the Company

Six months ended September 30, 2025

Common shares

Accumulated other

(amounts in millions of Canadian dollars,

Number of

Stated

Contributed

comprehensive

Retained

Non-controlling

Total

except number of shares)

shares

value

surplus

income

earnings

Total

interests

equity

Balances as at March 31, 2025

320,265,108

$

2,327.1

$

69.8

$

381.8

$

2,112.8

$

4,891.5

$

84.5

$

4,976.0

Net income

—

$

—

$

—

$

—

$

131.1

$

131.1

$

5.2

$

136.3

Other comprehensive (loss) income

—

—

—

(27.2)

39.7

12.5

(0.7)

11.8

Total comprehensive (loss) income

—

$

—

$

—

$

(27.2)

$

170.8

$

143.6

$

4.5

$

148.1

Exercise of stock options

566,866

20.5

(3.8)

—

—

16.7

—

16.7

Settlement of equity-settled awards

817

—

—

—

—

—

—

—

Repurchase and cancellation of common shares

(61,900)

(0.5)

—

—

(1.8)

(2.3)

—

(2.3)

Equity-settled share-based payments expense, after tax

—

—

29.2

—

—

29.2

—

29.2

Transactions with non-controlling interests

—

—

—

—

—

—

(7.7)

(7.7)

Balances as at September 30, 2025

320,770,891

$

2,347.1

$

95.2

$

354.6

$

2,281.8

$

5,078.7

$

81.3

$

5,160.0

Consolidated Statement of Cash Flows

(Unaudited)

Six months ended
September 30

(amounts in millions of Canadian dollars)

2026

2025

Operating activities

Net income

$

93.3

$

136.3

Adjustments for:

Depreciation and amortization

242.2

227.7

Impairment of non-financial assets – net

28.9

(1.2)

Share of after-tax profit of equity accounted investees

(33.8)

(37.5)

Deferred income taxes

(13.3)

21.8

Investment tax credits

(17.9)

(10.2)

Equity-settled share-based payments expense

19.4

26.0

Defined benefit pension plans

6.8

9.9

Derivative financial assets and liabilities – net

3.5

4.3

Other

(2.6)

(1.8)

Changes in non-cash working capital

64.1

(176.6)

Net cash provided by operating activities

$

390.6

$

198.7

Investing activities

Property, plant and equipment expenditures

$

(90.4)

$

(194.5)

Proceeds from disposal of property, plant and equipment

2.8

5.1

Intangible assets expenditures

(19.0)

(42.4)

Net payments to equity accounted investees

(5.4)

(18.1)

Dividends received from equity accounted investees

17.4

34.0

Other

(12.1)

(8.9)

Net cash used in investing activities

$

(106.7)

$

(224.8)

Financing activities

Net proceeds from borrowing under revolving credit facilities

$

—

$

70.4

Proceeds from long-term debt

—

82.5

Repayment of long-term debt

(134.5)

(220.6)

Repayment of lease liabilities

(43.7)

(33.5)

Net proceeds from the issuance of common shares

17.4

16.7

Repurchase and cancellation of common shares

(106.1)

(2.3)

Other

(2.2)

(1.3)

Net cash used in financing activities

$

(269.1)

$

(88.1)

Effect of foreign currency exchange differences on cash and cash equivalents

$

3.3

$

(0.8)

Net increase (decrease) in cash and cash equivalents

$

18.1

$

(115.0)

Cash and cash equivalents, beginning of period

552.4

293.7

Cash and cash equivalents, end of period

$

570.5

$

178.7

About CAE

At CAE, we exist to make the world safer. We deliver cutting-edge training, simulation, and critical operations solutions to prepare aviation professionals and defence forces for the moments that matter. Every day, we empower pilots, cabin crew, maintenance technicians, airlines, business aviation operators, and defence and security personnel to perform at their best and when the stakes are the highest. Around the globe, we’re everywhere customers need us to be with sites and training locations in over 40 countries. For nearly 80 years, CAE has been at the forefront of innovation, consistently seeking to set the standard by delivering excellence in high-fidelity flight simulators and training solutions, while embedding sustainability at the heart of everything we do. By harnessing technology and enhancing human performance, we strive to be the trusted partner in advancing safety and mission readiness – today and tomorrow.

CAE Contacts:

Media Relations:
Samantha Golinski, Senior Vice President, Communications
+1-438-805-5856, samantha.golinski@cae.com 

Investor Relations:
Andrew Arnovitz, Chief Strategy Officer
+1-514-734-5760, andrew.arnovitz@cae.com

View original content:https://www.prnewswire.com/news-releases/cae-reports-second-quarter-fiscal-2027-results-302936965.html

SOURCE CAE Inc.

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