Technology
Whirlpool Announces Second-Quarter Results; Delivers Sequential Margin Expansion
Published
2 years agoon
By
— Sequential margin expansion globally and in MDA North America, driven by MDA North America promotional pricing actions
— Solid performance in SDA Global, MDA Latin America, and MDA Asia, all delivering double-digit net sales growth in the quarter
— Continued progress toward cost take out goals; on track to deliver $300–$400 million in 2024
— Q2 GAAP net earnings margin of 5.5%; GAAP earnings per diluted share of $3.96
— Ongoing (non-GAAP) EBIT margin(1) of 5.3%; ongoing earnings per diluted share(2) of $2.39
— Expect full-year GAAP earnings per diluted share of approximately $3.00, primarily impacted by the non-cash charge related to the Europe transaction
— Revised full-year ongoing earnings per diluted share(2) to approximately $12.00, cash provided by operating activities to approximately $1.05 billion and free cash flow(3) to approximately $500 million
BENTON HARBOR, Mich., July 24, 2024 /PRNewswire/ — Whirlpool Corporation (NYSE: WHR), today reported second-quarter 2024 financial results.
“Our solid Q2 results and actions put us firmly on track towards expanding our margins sequentially throughout 2024,” said Marc Bitzer, “setting up our business well for the eventual recovery of the U.S. housing market.”
MARC BITZER, CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Second-Quarter Results
2024*
2023
Change
Net sales ($M)
$3,989
$4,792
(16.8) %
Net sales excluding currency ($M)
$4,026
$4,792
(16.0) %
GAAP net earnings (loss) available to Whirlpool ($M)
$219
$85
157.6 %
Ongoing EBIT(1) ($M)
$212
$352
(39.8) %
GAAP earnings (loss) per diluted share
$3.96
$1.55
155.5 %
Ongoing earnings per diluted share(2)
$2.39
$4.21
(43.2) %
*Excludes net sales from our previously-owned MDA Europe business
Free Cash Flow
2024
2023
Change
Cash provided by (used in) operating activities ($M)
$(485)
$(370)
$(115)
Free cash flow(3) ($M)
$(713)
$(587)
$(126)
“We completed our organizational simplification actions in the second quarter, putting us on track to deliver our cost take out goal of $300–$400 million,” said Jim Peters. “With strong working capital management driving more than $250 million cash generation within the quarter, we remain confident in delivering our capital allocation priorities.”
JIM PETERS, CHIEF FINANCIAL AND ADMINISTRATIVE OFFICER
SEGMENT REVIEW
SEGMENT INFORMATION ($M)
Q2 2024
Q2 2023
Change
MDA North America
Net Sales
$2,567
$2,722
(5.7) %
EBIT
$163
$275
(40.7) %
% of sales
6.3 %
10.1 %
(3.8pts)
MDA Latin America
Net Sales
$895
$804
11.3 %
EBIT
$52
$49
6.1 %
% of sales
5.8 %
6.1 %
(0.3pts)
MDA Asia
Net Sales
$340
$284
19.7 %
EBIT
$21
$10
110.0 %
% of sales
6.2 %
3.5 %
2.7pts
SDA Global
Net Sales
$187
$168
11.3 %
EBIT
$26
$21
23.8 %
% of sales
13.9 %
12.5 %
1.4pts
MDA: Major Domestic Appliances; SDA: Small Domestic Appliances
MDA NORTH AMERICA
Excluding currency, net sales decline of 5.6 percent year-over-year from unfavorable price/mix, which significantly improved throughout the quarter from promotional pricing actionsEBIT margin(4) decreased compared to the same prior-year period, driven by unfavorable price/mix partially offset by cost take out actions
MDA LATIN AMERICA
Excluding currency, net sales increase of 14.9 percent year-over-year, with strong share gains in the segment more than offsetting unfavorable price/mixEBIT margin(4) decreased compared to the same prior-year period, driven by unfavorable price/mix partially offset by fixed cost leverage and cost take out actions
MDA ASIA
Excluding currency, net sales increase of 21.5 percent year-over-year, with increased volumes from share gains partially offset by unfavorable price/mixEBIT margin(4) increased compared to the same prior-year period, driven by cost take out actions and fixed cost leverage
SDA GLOBAL
Excluding currency, net sales increase of 11.9 percent year-over-year, with growth from new product launches and direct to consumer business more than offsetting unfavorable price/mixEBIT margin(4) increased compared to the same prior-year period, driven by cost take out actions and volume growth
FULL-YEAR 2024 OUTLOOK
Guidance Summary
2023 Reported
2023 Like for
Like (5)
2024 Guidance
Net sales ($M)
$19,455
~$16,900
~$16,900
Cash provided by operating activities ($M)
$915
N/A
~$1,050
Free cash flow ($M)(3)
$366
N/A
~$500
GAAP net earnings margin (%)
2.5 %
N/A
~1.0%
Ongoing EBIT margin (%)(1)
6.1 %
~6.9%
~6.0%
GAAP earnings per diluted share
$8.72
N/A
~$3.00
Ongoing earnings per diluted share(2)
$16.16
N/A
~$12.00
Europe transaction closed April 1, 2024, as expectedReaffirm full-year 2024 net sales expectations of approximately $16.9 billionFull-year GAAP earnings per diluted share of approximately $3.00 impacted by non-cash charge related to the Europe transaction and organization simplification restructuring expenseAdjusted full-year ongoing earnings per diluted share(2) to approximately $12.00, including $300–$400 million of cost actionsAdjusted full-year cash provided by operating activities to approximately $1.05 billion and free cash flow(3) of approximately $500 million; includes approximately $250–$300 million of MDA Europe cash usage in 2024Expect full-year 2024 GAAP tax rate of approximately 25 percent and adjusted (non-GAAP) tax rate of approximately (8) percentContinue to expect to pay approximately $400 million of 2024 dividends (subject to board approval)
(1)
A reconciliation of earnings before interest and taxes (EBIT) and ongoing EBIT, non-GAAP financial measures, to reported net earnings (loss) available to Whirlpool, and a reconciliation of EBIT margin and ongoing EBIT margin, non-GAAP financial measures, to net earnings (loss) margin and other important information, appears below.
(2)
A reconciliation of ongoing earnings per diluted share, a non-GAAP financial measure, to reported net earnings (loss) per diluted share available to Whirlpool and other important information, appears below.
(3)
A reconciliation of free cash flow, a non-GAAP financial measure, to cash provided by (used in) operating activities and other important information, appears below.
(4)
Segment EBIT represents our consolidated EBIT broken down by the Company’s reportable segments and are metrics used by the chief operating decision maker in accordance with ASC 280. Consolidated EBIT also includes corporate “Other/Eliminations” of $(150) million and $(79) million for the second quarters of 2024 and 2023, respectively.
(5)
Like-for-like refers to a comparison between the 2024 guidance and pro forma results for 2023, which exclude the second through fourth quarter resegmented results for the historical Europe major domestic appliances business (MDA Europe under new segment operating structure). This comparison uses a prior period baseline that is aligned to the ongoing business expectations for 2024, with the Europe transaction closed April 2024. The like-for-like GAAP net earnings margin and corresponding reconciliation cannot be provided without unreasonable effort or expense. Please see below for a reconciliation of ongoing EBIT for the full year to GAAP net earnings.
ABOUT WHIRLPOOL CORPORATION
Whirlpool Corporation (NYSE: WHR) is a leading kitchen and laundry appliance company, in constant pursuit of improving life at home and inspiring generations with our brands. The company is driving meaningful innovation to meet the evolving needs of consumers through its iconic brand portfolio, including Whirlpool, KitchenAid, JennAir, Maytag, Amana, Brastemp, Consul, and InSinkErator. In 2023, the company reported approximately $19 billion in annual net sales, 59,000 employees and 55 manufacturing and technology research centers. Additional information about the company can be found at WhirlpoolCorp.com.
WEBSITE DISCLOSURE
We routinely post important information for investors on our website, WhirlpoolCorp.com, in the “Investors” section. We also intend to update the “Hot Topics Q&A” portion of this webpage as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the “Investors” section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our webpage is not incorporated by reference into, and is not a part of, this document.
WHIRLPOOL ADDITIONAL INFORMATION
This document contains forward-looking statements about Whirlpool Corporation and its consolidated subsidiaries (“Whirlpool”) 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. Whirlpool intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with those safe harbor provisions. Any statements made in this press release that are not statements of historical fact, including statements regarding future financial results, long-term value creation goals, restructuring and resegmentation expectations, productivity, raw material prices and related costs, supply chain, transaction-related closing and synergies expectations, asset impairment, litigation, ESG efforts, debt repayment expectations, and the impact of COVID-19 and the Russia/Ukraine, Israel and Red Sea conflicts, and housing recovery-related benefits on our operations are forward-looking statements and should be evaluated as such. Such statements can be identified by the use of terminology such as “may,” “could,” “will,” “should,” “possible,” “plan,” “predict,” “forecast,” “potential,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “may impact,” “on track,” “margin lift,” and similar words or expressions. Many risks, contingencies and uncertainties could cause actual results to differ materially from Whirlpool’s forward-looking statements. Among these factors are: (1) intense competition in the home appliance industry, and the impact of the changing retail environment, including direct-to-consumer sales; (2) Whirlpool’s ability to maintain or increase sales to significant trade customers; (3) Whirlpool’s ability to maintain its reputation and brand image; (4) the ability of Whirlpool to achieve its business objectives and leverage its global operating platform, and accelerate the rate of innovation; (5) Whirlpool’s ability to understand consumer preferences and successfully develop new products; (6) Whirlpool’s ability to obtain and protect intellectual property rights; (7) acquisition, divestiture, and investment-related risks, including risks associated with our past acquisitions; (8) the ability of suppliers of critical parts, components and manufacturing equipment to deliver sufficient quantities to Whirlpool in a timely and cost-effective manner; (9) COVID-19 pandemic, other public health emergency-related business disruptions and economic uncertainty; (10) Whirlpool’s ability to navigate risks associated with our presence in emerging markets; (11) risks related to our international operations; (12) Whirlpool’s ability to respond to unanticipated social, political and/or economic events; (13) information technology system failures, data security breaches, data privacy compliance, network disruptions, and cybersecurity attacks; (14) product liability and product recall costs; (15) Whirlpool’s ability to attract, develop and retain executives and other qualified employees; (16) the impact of labor relations; (17) fluctuations in the cost of key materials (including steel, resins, base metals) and components and the ability of Whirlpool to offset cost increases; (18) Whirlpool’s ability to manage foreign currency fluctuations; (19) impacts from goodwill impairment and related charges; (20) triggering events or circumstances impacting the carrying value of our long-lived assets; (21) inventory and other asset risk; (22) health care cost trends, regulatory changes and variations between results and estimates that could increase future funding obligations for pension and postretirement benefit plans; (23) litigation, tax, and legal compliance risk and costs; (24) the effects and costs of governmental investigations or related actions by third parties; (25) changes in the legal and regulatory environment including environmental, health and safety regulations, data privacy, and taxes and tariffs; (26) Whirlpool’s ability to respond to the impact of climate change and climate change regulation; and (27) the uncertain global economy and changes in economic conditions. Price increases and/or actions referred to throughout the document reflect previously announced cost-based price increases. Additional information concerning these and other factors can be found in Whirlpool’s filings with the Securities and Exchange Commission, including the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. Price increases and/or actions referred to throughout the document reflect previously announced cost-based price increases. These cautionary statements should not be construed by you to be exhaustive and the forward-looking statements are made only as of the date of this press release. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
WHIRLPOOL CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
FOR THE PERIODS ENDED JUNE 30
(Millions of dollars, except per share data)
Three Months Ended
Six Months Ended
2024
2023
2024
2023
Net sales
$ 3,989
$ 4,792
$ 8,478
$ 9,441
Expenses
Cost of products sold
3,363
3,976
7,211
7,862
Gross margin
626
816
1,267
1,579
Selling, general and administrative
394
476
871
963
Intangible amortization
7
10
17
21
Restructuring costs
50
9
73
9
Loss (gain) on sale and disposal of businesses
45
18
292
240
Operating profit
130
303
14
346
Other (income) expense
Interest and sundry (income) expense
7
10
(21)
87
Interest expense
93
89
183
164
Earnings (loss) before income taxes
30
204
(148)
95
Income tax expense (benefit)
(206)
114
(130)
182
Equity method investment income (loss), net of tax
(11)
(3)
(11)
(2)
Net earnings (loss)
225
87
(29)
(89)
Less: Net earnings (loss) available to noncontrolling interests
6
2
11
5
Net earnings (loss) available to Whirlpool
$ 219
$ 85
$ (40)
$ (94)
Per share of common stock
Basic net earnings (loss) available to Whirlpool
$ 3.96
$ 1.56
$ (0.75)
$ (1.71)
Diluted net earnings (loss) available to Whirlpool
$ 3.96
$ 1.55
$ (0.75)
$ (1.71)
Dividends declared
$ 1.75
$ 1.75
$ 3.50
$ 3.50
Weighted-average shares outstanding (in millions)
Basic
54.9
55.0
54.9
54.9
Diluted
55.0
55.2
54.9
54.9
WHIRLPOOL CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(Millions of dollars, except share data)
June 30, 2024
December 31, 2023
(Unaudited)
Assets
Current assets
Cash and cash equivalents
$ 1,179
$ 1,570
Accounts receivable, net of allowance of $48 and $47, respectively
1,595
1,529
Inventories
2,309
2,247
Prepaid and other current assets
777
717
Assets held for sale
—
144
Total current assets
5,860
6,207
Property, net of accumulated depreciation of $5,355 and $5,259, respectively
2,254
2,234
Right of use assets
882
721
Goodwill
3,328
3,330
Other intangibles, net of accumulated amortization of $455 and $440, respectively
3,110
3,124
Deferred income taxes
1,376
1,317
Other noncurrent assets
533
379
Total assets
$ 17,343
$ 17,312
Liabilities and stockholders’ equity
Current liabilities
Accounts payable
$ 3,420
$ 3,598
Accrued expenses
448
491
Accrued advertising and promotions
480
603
Employee compensation
172
238
Notes payable
778
17
Current maturities of long-term debt
350
800
Other current liabilities
481
614
Liabilities held for sale
—
587
Total current liabilities
6,129
6,948
Noncurrent liabilities
Long-term debt
6,313
6,414
Pension benefits
120
147
Postretirement benefits
103
107
Lease liabilities
776
612
Other noncurrent liabilities
543
547
Total noncurrent liabilities
7,855
7,827
Stockholders’ equity
Common stock, $1 par value, 250 million shares authorized, 115 million and
114 million shares issued, respectively, and 55 million and 55 million shares
outstanding, respectively
115
114
Additional paid-in capital
3,455
3,078
Retained earnings
8,127
8,358
Accumulated other comprehensive loss
(1,563)
(2,178)
Treasury stock, 60 million and 60 million shares, respectively
(7,037)
(7,010)
Total Whirlpool stockholders’ equity
3,097
2,362
Noncontrolling interests
262
175
Total stockholders’ equity
3,359
2,537
Total liabilities and stockholders’ equity
$ 17,343
$ 17,312
WHIRLPOOL CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE PERIODS ENDED JUNE 30
(Millions of dollars)
Six Months Ended
2024
2023
Operating activities
Net earnings (loss)
$ (29)
$ (89)
Adjustments to reconcile net earnings to cash provided by (used in) operating activities:
Depreciation and amortization
170
178
Loss (gain) on sale and disposal of businesses
292
240
Changes in assets and liabilities:
Accounts receivable
(211)
(161)
Inventories
(54)
(384)
Accounts payable
(123)
(146)
Accrued advertising and promotions
(154)
(182)
Accrued expenses and current liabilities
(170)
50
Taxes deferred and payable, net
(209)
113
Accrued pension and postretirement benefits
(14)
(29)
Employee compensation
(22)
47
Other
39
(7)
Cash provided by (used in) operating activities
(485)
(370)
Investing activities
Capital expenditures
(228)
(217)
Proceeds from sale of assets and businesses
42
9
Acquisition of businesses, net of cash acquired
—
(14)
Cash held by divested businesses
(245)
—
Other
(1)
—
Cash provided by (used in) investing activities
(432)
(222)
Financing activities
Net proceeds from borrowings of long-term debt
300
303
Net proceeds (repayments) of long-term debt
(801)
(250)
Net proceeds (repayments) from short-term borrowings
780
28
Dividends paid
(191)
(193)
Repurchase of common stock
(50)
—
Sale of minority interest in subsidiary
462
—
Common stock issued
—
4
Other
1
(2)
Cash provided by (used in) financing activities
501
(110)
Effect of exchange rate changes on cash and cash equivalents
(72)
55
Less: change in cash classified as held for sale
—
(2)
Increase (decrease) in cash and cash equivalents
(488)
(649)
Cash and cash equivalents at beginning of year (1)
1,667
1,958
Cash and cash equivalents at end of period
$ 1,179
$ 1,309
(1) Cash and cash equivalent at the beginning of 2024 include $1,570 million of cash and cash equivalents and cash of $97 million classified as held for sale as of December 31, 2023.
SUPPLEMENTAL INFORMATION – CONSOLIDATED FINANCIAL STATEMENTS RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Millions of dollars except per share data) (Unaudited)
We supplement the reporting of our financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial measures, some of which we refer to as “ongoing” measures. These measures may include earnings before interest and taxes (EBIT), EBIT margin, ongoing EBIT, ongoing EBIT margin, ongoing earnings per diluted share, adjusted effective tax rate, organic net sales, net debt leverage (Net Debt/Ongoing EBITDA), return on invested capital (ROIC) and free cash flow.
Ongoing measures exclude items that may not be indicative of, or are unrelated to, results from our ongoing operations and provide a better baseline for analyzing trends in our underlying businesses.
Sales excluding foreign currency: Current period net sales translated in functional currency, to U.S. dollars using the applicable prior period’s exchange rate compared to the applicable prior period net sales. Management believes that sales excluding foreign currency provides stockholders with a clearer basis to assess our results over time, excluding the impact of exchange rate fluctuations.
Organic net sales: Sales excluding the impact of certain acquisitions or divestitures, and foreign currency. Management believes that organic net sales provides stockholders with a clearer basis to assess our results over time, excluding the impact of exchange rate fluctuations and certain acquisitions and/or divestitures.
Ongoing EBIT margin: Ongoing earnings before interest and taxes divided by net sales. Ongoing measures exclude items that may not be indicative of, or are unrelated to, results from our ongoing operations and provide a better baseline for analyzing trends in our underlying businesses.
Ongoing earnings per diluted share: Diluted net earnings per share from continuing operations, adjusted to exclude items that may not be indicative of, or are unrelated to, results from our ongoing operations. Ongoing measures provide a better baseline for analyzing trends in our underlying businesses.
Net debt leverage: Net debt to ongoing earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio is net debt outstanding, including long-term debt, current maturities of long-term debt, and notes payable, less cash and cash equivalents, divided by ongoing EBITDA. Management believes that net debt leverage provides stockholders with a view of our ability to generate earnings sufficient to service our debt.
Return on invested capital: Ongoing EBIT after taxes divided by total invested capital, defined as total assets less non-interest bearing current liabilities (NIBCLS). NIBCLS is defined as current liabilities less current maturities of long-term debt and notes payable. This ROIC definition may differ from other companies’ methods and therefore may not be comparable to those used by other companies. Management believes that ROIC provides stockholders with a view of capital efficiency, a key driver of stockholder value creation.
Adjusted effective tax rate: Effective tax rate, excluding pre-tax income and tax effect of certain unique items. Management believes that adjusted tax rate provides stockholders with a meaningful, consistent comparison of the Company’s effective tax rate, excluding the pre-tax income and tax effect of certain unique items.
Free cash flow: Cash provided by (used in) operating activities less capital expenditures. Management believes that free cash flow provides stockholders with a relevant measure of liquidity and a useful basis for assessing the company’s ability to fund its activities and obligations.
Whirlpool does not provide a non-GAAP reconciliation for its forward-looking long-term value creation goals, such as organic net sales, EBIT, free cash flow conversion, future year free cash flow benefit as a result of Europe transaction closing, ROIC and net debt leverage, as these long-term management goals are not annual guidance, and the reconciliation of these long-term measures would rely on market factors and certain other conditions and assumptions that are outside of the company’s control.
We believe that these non-GAAP measures provide meaningful information to assist investors and stockholders in understanding our financial results and assessing our prospects for future performance, and reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP financial measures, provide a more complete understanding of our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. These ongoing financial measures should not be considered in isolation or as a substitute for reported net earnings available to Whirlpool per diluted share, net earnings, net earnings available to Whirlpool, net earnings margin, return on assets, net sales, effective tax rate and cash provided by (used in) operating activities, the most directly comparable GAAP financial measures.
We also disclose segment EBIT as an important financial metric used by the Company’s Chief Operating Decision Maker to evaluate performance and allocate resources in accordance with ASC 280 – Segment Reporting.
GAAP net earnings available to Whirlpool per basic or diluted share (as applicable) and ongoing earnings per diluted share are presented net of tax, while individual adjustments in each reconciliation are presented on a pre-tax basis; the income tax impact line item aggregates the tax impact for these adjustments. The tax impact of individual line item adjustments may not foot precisely to the aggregate income tax impact amount, as each line item adjustment may include non-taxable components. Historical quarterly earnings per share amounts are presented based on a normalized tax rate adjustment to reconcile quarterly tax rates to full-year tax rate expectations. We strongly encourage investors and stockholders to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
SECOND-QUARTER 2024 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE
The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool and net earnings (loss) per diluted share available to Whirlpool, for the three months ended June 30, 2024. Net earnings (loss) margin is calculated by dividing net earnings (loss) available to Whirlpool by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our second-quarter GAAP tax rate was (687)%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our second-quarter adjusted tax rate (non-GAAP) of (14)%.
Three Months Ended
Earnings Before Interest & Taxes Reconciliation:
June 30, 2024
Net earnings (loss) available to Whirlpool
$ 219
Net earnings (loss) available to noncontrolling interests
6
Income tax expense (benefit)
(206)
Interest expense
93
Earnings before interest & taxes
$ 112
Net sales
$ 3,989
Net earnings (loss) margin
5.5 %
Results classification
Earnings before
interest & taxes
Earnings per
diluted share
Reported measure
$ 112
$ 3.96
Restructuring expense(a)
Restructuring expense
50
0.91
Impact of M&A
transactions(b)
(Gain) loss on sale and
disposal of businesses &
Selling, general and
administrative
50
0.90
Total income tax impact
0.26
Normalized tax rate
adjustment(d)
(3.64)
Ongoing measure
$ 212
$ 2.39
Net sales
$ 3,989
Ongoing EBIT margin
5.3 %
Note: Numbers may not reconcile due to rounding.
SECOND-QUARTER 2023 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE
The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool and net earnings (loss) per diluted share available to Whirlpool, for the three months ended June 30, 2023. Net earnings (loss) margin is calculated by dividing net earnings (loss) available to Whirlpool by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our second-quarter GAAP tax rate was 56%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our second-quarter adjusted tax rate (non-GAAP) of 11%.
Three Months Ended
Earnings Before Interest & Taxes Reconciliation:
June 30, 2023
Net earnings (loss) available to Whirlpool
$ 85
Net earnings (loss) available to noncontrolling interests
2
Income tax expense (benefit)
114
Interest expense
89
Earnings before interest & taxes
$ 290
Net sales
$ 4,792
Net earnings (loss) margin
1.8 %
Results classification
Earnings before
interest & taxes
Earnings per
diluted share
Reported measure
$ 290
$ 1.55
Impact of M&A
transactions(a)
(Gain) loss on sale and
disposal of businesses &
Selling, general and
administrative
26
0.47
Legacy EMEA legal matters(b)
Interest and sundry
(income) expense
36
0.65
Total income tax impact
(0.12)
Normalized tax rate
adjustment(c)
—
1.66
Ongoing measure
$ 352
$ 4.21
Net sales
$ 4,792
Ongoing EBIT margin
7.3 %
Note: Numbers may not reconcile due to rounding
FULL-YEAR 2024 OUTLOOK FOR ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE
The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings available to Whirlpool and net earnings per diluted share available to Whirlpool, for the twelve months ending December 31, 2024. Net earnings margin is calculated by dividing net earnings available to Whirlpool by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our anticipated full-year GAAP tax rate is approximately 25%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our anticipated full-year adjusted tax (non-GAAP) rate of approximately (8)%.
Twelve Months Ending
Earnings Before Interest & Taxes Reconciliation:
December 31, 2024
Net earnings available to Whirlpool
~$165
Net earnings available to noncontrolling interests
~$20
Income tax expense (benefit)
~$60
Interest expense
~$355
Earnings before interest & taxes
~$600
Net sales
~$16,900
Net earnings margin
3.6 %
Results classification
Earnings before
interest & taxes
Earnings per
diluted share
Reported measure
~$600
~$3.00
Restructuring Expense(a)
~75
~1.25
Impact of M&A
transactions(b)
(Gain) loss on sale and
disposal of businesses &
Selling, general and
administrative
~315
~5.75
Total income tax impact
—
Normalized tax rate adjustment(d)
~1.50
Ongoing measure
~$1,000
~$12.00
Note: Numbers may not reconcile due to rounding
FULL-YEAR 2023 ONGOING EARNINGS BEFORE INTEREST AND TAXES AND ONGOING EARNINGS PER DILUTED SHARE
The reconciliation provided below reconciles the non-GAAP financial measures ongoing earnings before interest and taxes and ongoing earnings per diluted share, with the most directly comparable GAAP financial measures, net earnings (loss) available to Whirlpool and net earnings (loss) per diluted share available to Whirlpool, for the twelve months ended December 31, 2023. Net earnings (loss) margin is calculated by dividing net earnings (loss) available to Whirlpool by net sales. Ongoing EBIT margin is calculated by dividing ongoing EBIT by net sales. EBIT margin is calculated by dividing EBIT by net sales. The earnings per diluted share GAAP measure and ongoing measure are presented net of tax, while each adjustment is presented on a pre-tax basis. Our full-year GAAP tax rate was 13%. The aggregate income tax impact of the taxable components of each adjustment is presented in the income tax impact line item at our full-year adjusted tax (non-GAAP) rate of (7)%.
Twelve Months Ended
Earnings Before Interest & Taxes Reconciliation:
December 31, 2023
Net earnings (loss) available to Whirlpool
$ 481
Net earnings (loss) available to noncontrolling interests
7
Income tax expense (benefit)
77
Interest expense
351
Earnings before interest & taxes
$ 916
Net sales
$ 19,455
Net earnings (loss) margin
2.5 %
Results classification
Earnings before
interest & taxes
Earnings per
diluted share
Reported measure
$ 916
$ 8.72
Impact of M&A
transactions(b)
(Gain) loss on sale and
disposal of businesses &
Selling, general and
administrative & including
equity method investment
181
3.27
Legacy EMEA legal matters(c)
Interest and sundry
(income) expense
94
1.71
Total income tax impact
0.35
Normalized tax rate adjustment(d)
2.11
Ongoing measure
$ 1,191
$ 16.16
Net Sales
$ 19,455
Ongoing EBIT Margin
6.1 %
Note: Numbers may not reconcile due to rounding
FOOTNOTES
a. RESTRUCTURING EXPENSE – In March 2024, the Company committed to workforce reduction plans. $23 million was recorded during the first quarter, of which $14 million was employee termination costs and $9 million was other associated exit costs. During the second quarter of 2024, the Company executed additional restructuring actions as part of the Company’s complexity reduction and organizational simplification efforts. Total costs for these actions were $50 million, primarily in employee termination costs, which were incurred within the second quarter of 2024.
b. IMPACT OF M&A TRANSACTIONS – On January 16, 2023, we signed a contribution agreement to contribute our European major domestic appliance business into a newly formed entity with Arçelik. In connection with the transaction, we recorded a loss on disposal of $292 million for the six months ended June 30, 2024, of which $45 million was incurred in the second quarter of 2024. Additionally, we incurred other unique transaction related costs related to portfolio transformation for a total of $17 million for the six months ended June 30, 2024, of which $5 million was incurred in the second quarter of 2024. These transaction costs are recorded in Selling, General and Administrative expenses on our Consolidated Condensed Statements of Comprehensive Income (Loss).
For the six months ended June 30, 2023, a loss on disposal of $240 million was recorded, of which $18 million was recorded during the second quarter. Additionally, we incurred other unique transaction related costs related to portfolio transformation for a total of $8 million for the three and six months ended June 30, 2023. These transaction costs are recorded in Selling, General and Administrative expenses on our Consolidated Condensed Statements of Comprehensive Income (Loss).
c. LEGACY MDA EUROPE LEGAL MATTERS – The aggregate amount accrued by the Company related to the Competition Investigation and other legacy legal matters of our European major domestic appliance business was $36 million and $94 million, for the three months ended June 30, 2023 and the twelve months ended December 31, 2023, respectively.
d. NORMALIZED TAX RATE ADJUSTMENT – During the second quarter of 2024, the Company calculated a GAAP tax rate of (687)%. Ongoing earnings per share was calculated using an adjusted tax rate of (14)%, which excludes the non-tax deductible impact of M&A transactions of approximately $50 million recorded in the second quarter of 2024 and certain other tax impacts related to Europe transaction. The Company expects a full-year GAAP tax rate of approximately 25% and adjusted effective tax rate of approximately (8)%, revised from the prior quarter estimate primarily due to lower forecasted earnings before income taxes.
During the second quarter of 2023, the Company calculated ongoing earnings per share using an adjusted tax rate of 11%, which excludes the non-tax deductible impact of M&A transactions of approximately $26 million recorded in the second quarter of 2023. During the full-year of 2023, the Company calculated ongoing earnings per share using an adjusted tax rate of (7)% which excludes the non-tax deductible impact of M&A transactions of approximately $25 million recorded in the fourth quarter of 2023 and which reflects certain tax benefits related to legal entity restructuring transactions in the fourth quarter of 2023.
Additionally, in the full-year 2024 outlook, the Company calculated ongoing earnings per share using a full-year adjusted tax (non-GAAP) rate of approximately (8)%. Subsequent to the closure of the Europe transaction, the Company has recorded certain significant tax benefits related to legal entity restructuring transactions. Additional tax impacts from legal entity restructuring projects are possible in future quarters, and those future impacts have been included in our expected full-year non-GAAP tax rate. Reconciling from our expected full-year GAAP tax rate of approximately 25%, certain Europe transaction tax impacts have been adjusted from our full-year adjusted tax (non-GAAP) rate of approximately (8)%.
ONGOING EBIT EXCLUDING MDA EUROPE SECOND QUARTER THROUGH FOURTH QUARTER
The reconciliation provided below reconciles the impact of removing MDA Europe from our Q2 through Q4 net sales and ongoing EBIT, for twelve months ended December 31, 2023 for the Whirlpool business.
In billions
2023 As
Reported
Q2-Q4 2023
MDA
Europe*
2023 Like
for Like
Net Sales
$ 19.46
$ 2.56
$ 16.90
Ongoing EBIT
$ 1.19
$ 0.03
$ 1.16
Ongoing EBIT Margin
6.1 %
1.2 %
~6.9%
Note: Numbers may not reconcile due to rounding
*Q2-Q4 historical segment financial data (unaudited).
FREE CASH FLOW
Free cash flow is cash provided by (used in) operating activities after capital expenditures. The reconciliation provided below reconciles six months ended June 30, 2024 and 2023 and 2024 full-year free cash flow with cash provided by (used in) operating activities, the most directly comparable GAAP financial measure. Free cash flow as a percentage of net sales is calculated by dividing free cash flow by net sales.
Six Months Ended
June 30,
(millions of dollars)
2024
2023
2024
Outlook
Cash provided by (used in) operating activities
$(485)
$(370)
~$1,050
Capital expenditures
(228)
(217)
~(550)
Free cash flow
$(713)
$(587)
~$500
Cash provided by (used in) investing activities*
(432)
(222)
Cash provided by (used in) financing activities*
501
(110)
*Financial guidance on a GAAP basis for cash provided by (used in) financing activities and cash provided by (used in) investing activities has not been provided because in order to prepare any such estimate or projection, the Company would need to rely on market factors and certain other conditions and assumptions that are outside of its control.
Free cash flow is cash provided by (used in) operating activities after capital expenditures. The reconciliation provided below reconciles three months ended June 30, 2024 free cash flow with cash provided by (used in) operating activities, the most directly comparable GAAP financial measure. Free cash flow as a percentage of net sales is calculated by dividing free cash flow by net sales.
Three Months Ended
(millions of dollars)
June 30, 2024
Cash provided by (used in) operating activities
$388
Capital expenditures
(113)
Free cash flow
$275
Cash provided by (used in) investing activities
121
Cash provided by (used in) financing activities
1,293
Free cash flow is cash provided by (used in) operating activities after capital expenditures. The reconciliation provided below reconciles twelve months ended December 31, 2023 full-year free cash flow with cash provided by (used in) operating activities, the most directly comparable GAAP financial measure. Free cash flow as a percentage of net sales is calculated by dividing free cash flow by net sales.
Twelve Months Ended
December 31,
(millions of dollars)
2023
Cash provided by (used in) operating activities
$915
Capital expenditures
(549)
Free cash flow
$366
Cash provided by (used in) investing activities
(553)
Cash provided by (used in) financing activities
(792)
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SOURCE Whirlpool Corporation
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Vertical IQ Will Expand Industry Intelligence Platform with Small Business Financial Exchange (SBFE) Small Business Credit Data
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October 27, 2026By
RALEIGH, N.C., Oct. 27, 2026 /PRNewswire/ — Small Business Financial Exchange (SBFE), the trusted source for small business lending data and Vertical IQ, a nationally recognized provider of Industry Intelligence, today announced their partnership. Through the partnership, Vertical IQ will incorporate SBFE small business credit insights into its platform, providing financial institutions with deeper context to support commercial lending decisions.
The collaboration enables banks, credit unions, and other commercial lenders using Vertical IQ to gain access to SBFE small business credit insights within the Industry Intelligence platform. Default rates, delinquencies, and credit trends by industries are just a few of the SBFE features that will be included. These insights allow financial services professionals to better understand small business borrowers and support key commercial lending activities.
“At SBFE, we’re committed to helping lenders better understand and support small businesses. Extending access to SBFE insights through Vertical IQ is another way we can deliver value to the lending community and support greater access to capital.”
– Elisabeth MacDonald, President and CEO, SBFE
“At Vertical IQ, we believe financial institutions make their best decisions when they have access to trusted, Verified Industry Intelligence powered by the highest-quality data available,” said Bobby Martin, co-founder and CEO of Vertical IQ. “Our partnership with SBFE represents another important step in that commitment by bringing highly respected small business credit insights into our platform. By combining SBFE’s credit data with Vertical IQ’s industry expertise, we’re helping lenders gain deeper context to strengthen credit analysis, improve risk assessment, and make more confident decisions throughout the commercial lending lifecycle.”
– Bobby Martin, Co-founder and CEO, Vertical IQ
About SBFE
SBFE is the trusted data exchange where the small business lending industry comes together to strengthen access to capital for America’s small businesses. For more than 25 years, SBFE has united lenders in a member-driven community built on trust, collaboration, and the responsible use of data. Today, SBFE securely manages one of the nation’s largest repositories of small business credit data, contributed by more than 140 member institutions, including many of the country’s largest commercial banks. This data enables highly predictive credit reporting and portfolio management solutions that help lenders make more informed decisions, manage risk, and support the financial health and growth of small businesses. By transforming shared data into trusted lending intelligence, SBFE helps its members strengthen credit decisioning and promote greater access to capital. Learn more at www.SBFE.org
About Vertical IQ
Headquartered in Raleigh, North Carolina, Vertical IQ is a nationally recognized provider of Industry Intelligence. Whether discussing cash management with a local brewery or evaluating risk for a large manufacturing company, successful banks, credit unions, accounting firms, insurance organizations, and advisory firms use Vertical IQ to better understand a prospect’s or client’s business challenges before, during, and after meetings. Covering 100% of the industries that comprise the U.S. and Canadian economies, as well as more than 3,400 local economic reports, Vertical IQ equips professionals with the confidence and credibility to build stronger client relationships and make more informed decisions. Learn more at www.verticaliq.com
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SOURCE SBFE
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CME Group Brazilian Real Futures Set New Daily Volume Record Following Election
Published
38 minutes agoon
October 27, 2026By
Record $9 billion notional traded, eleven times the year-to-date average daily volume (ADV) as market participants turned to CME Group to manage risk around the clock
CHICAGO, Oct. 27, 2026 /PRNewswire/ — CME Group, the world’s leading derivatives marketplace, today announced that its Brazilian real (BRL) futures reached a new daily volume record of 498,498 contracts (R$49.8 billion, ~$9.2 billion notional value) on October 26, surpassing the previous record of 191,325 contracts (~$3.7 billion notional value) traded on September 28, 2026.
“Following the results of the Brazilian presidential election, clients turned to our BRL futures market to immediately manage their risk outside of Brazilian trading hours, driving all-time record volume,” said Paul Houston, Global Head of FX Products, CME Group. “Even before the onshore market opened, $2.5 billion in notional value had already traded, roughly three times the year-to-date ADV for BRL futures. With liquidity in all timezones and contracts denominated in USD, our markets are fast becoming the main venue for Brazilian real price discovery and trading outside of onshore hours, giving global participants the liquidity they need around the clock.”
In the first half of 2026, Mexican peso and Brazilian real futures and options saw a record combined average daily volume of $2.94 billion.
For more information on CME Group BRL futures, please visit https://www.cmegroup.com/articles/faqs/latam-fx-futures-frequently-asked-questions.html
As the world’s leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products and metals. The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world’s leading central counterparty clearing providers, CME Clearing.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“S&P DJI”). “S&P®”, “S&P 500®”, “SPY®”, “SPX®”, US 500 and The 500 are trademarks of Standard & Poor’s Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.
CME-G
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SOURCE CME Group
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Vera Health Quietly Became One of the World’s Most Used Clinical Tools. Now It Has Raised $32 Million to Give Every Clinician in the World the Best Medical Knowledge in Seconds
Published
38 minutes agoon
October 27, 2026By
With a team of just 12 employees, the clinical AI company has grown largely through physician referrals, bringing total funding to $32 million
More than 800,000 clinicians across 190 countries use Vera Health, including approximately 1 in 4 physicians in Spain and Italy, with most discovering the platform through recommendations from colleagues.Threshold Ventures led Vera Health’s $28.5 million Series A, with participation from Mantis VC and SV Angel. Existing investors Y Combinator and Gradient tripled down, bringing total funding to $32 million.The investment will accelerate Vera Health’s evidence-focused clinical AI platform, expanding its ability to make global medical knowledge locally relevant and deepening partnerships with medical societies, publishers and health systems.
SAN FRANCISCO, Oct. 27, 2026 /PRNewswire/ — A year ago, a few thousand clinicians were using Vera Health. Today, more than 800,000 are, most having discovered the platform through a colleague. Every month since June, Vera has been the most downloaded clinical app in the world across the App Store and Google Play.¹ In September alone, it was downloaded more times than OpenEvidence and Doximity combined, while monthly downloads had more than tripled since February. With a team of just 12 employees, Vera has reached clinicians in 190 countries, including approximately 1 in 4 physicians in Spain and Italy, largely through word of mouth. Vera Health is a clinical AI search engine that reasons like a clinician, helping physicians find and evaluate medical evidence in seconds.
Today, Vera Health announced a $28.5 million Series A led by Threshold Ventures, with participation from Mantis VC and SV Angel. Existing investors Y Combinator and Gradient, tripled down in the round, bringing the company’s total funding to $32 million. The investment will accelerate Vera Health’s mission to close the gap between what medicine knows and what every patient receives.
Only a few months after raising its Series A, Vera already has more daily active users than it had monthly active users at the time of the raise. Clinicians went from asking Vera a few thousand questions a day to asking hundreds of thousands, every single day.
“Clinicians are the best data scientists I’ve ever met. They make the call in seconds, with more evidence than any human could ever read,” said Taieb Bennani, Co-Founder of Vera Health. “The secret to building for them is to live and breathe the problem like no one else. Everyone on our team is a clinician, or the child or sibling of one, like Maxime and me. That passion translates into every detail of the product, and when you build with that kind of obsession, the product speaks for itself, and clinicians share it with their colleagues. We don’t have the biggest team or the most money. We have the people who care the most about getting it right.”
How does Vera Health differ from general-purpose AI tools?
Clinical AI is increasingly being used to help physicians navigate complex medical questions, but the ability to generate an accurate-sounding answer does not necessarily establish whether the underlying research is reliable. Medicine now publishes a new scientific paper roughly every 20 seconds. Chatbots are built to sound confident. Vera is built to be accurate, and honest when the evidence is thin. Physicians are expected to keep up with an expanding body of research while interpreting guidelines, evaluating treatment options and making decisions for individual patients, sometimes within seconds.
Vera Health finds the evidence first, then writes the answer. Its technology searches more than 60 million peer-reviewed publications, clinical guidelines, consensus statements and drug labels, evaluating sources based on study design, level of evidence, cohort size, recency, journal quality and citation impact. Every claim is linked to its supporting research and color-coded to show the strength of the available evidence. Sometimes that color is red. A rare condition may have no large randomized trial or comprehensive guideline behind it, leaving only a small case series or a report involving a single patient. Vera Health surfaces that research while making its limitations visible, allowing physicians to assess how much weight the findings deserve.
“Medical knowledge moves too quickly for any one clinician to read, and general-purpose AI tools can make uncertain evidence sound settled,” said Maxime Allouch, co-founder, Vera Health. “Unlike other tools, we believe there’s value in making uncertainty visible. The grade shapes what Vera retrieves and writes, while the clinician brings the patient, the context and the judgment.”
Vera Health developed its approach alongside physicians who evaluate medical evidence and help write the guidelines other clinicians follow. Through its partnership with the American College of Emergency Physicians (ACEP), the platform integrates ACEP clinical policies with source attribution, bringing medical society guidance directly into clinical research workflows.
“In medicine, not all evidence is equal,” said Scott M. Silvers, MD, FACEP, Chair of the American College of Emergency Physicians’ Clinical Policies Committee and former Chair of Emergency Medicine at Mayo Clinic. “A large, randomized trial and a case report should never carry the same weight, yet most AI tools blend them into the same confident answer. Level of evidence is the foundation of every guideline we write, and Vera Health is built on it.”
For Dr. Bernard P. Chang, Vera Health’s Chief Scientific Advisor and Vice Chair of Research in the Department of Emergency Medicine at Columbia University, the importance of clinical evidence extends to how physicians evaluate patients.
“On a recent emergency-department shift, I saw a young woman with cough and shortness of breath. The symptoms could easily be attributed to a routine respiratory illness,” said Chang. “Vera Health surfaced evidence that raised my concern for pulmonary embolism, a potentially life-threatening blood clot in the lungs, and led me to broaden my evaluation. What interests me isn’t AI simply providing an answer. It’s whether it can reliably surface evidence that challenges our initial assumptions and improves clinical reasoning. That’s what we’re now evaluating rigorously, inside the academic medical centers where medicine is actually practiced.”
Vera Health’s clinical advisors also include Christopher Baugh, MD, MBA, FACEP, Vice Chair of Clinical Affairs in Emergency Medicine at Brigham and Women’s Hospital and Associate Professor of Emergency Medicine at Harvard Medical School. Its clinical council includes physician leaders affiliated with Mayo Clinic, Yale, Harvard, Columbia and Penn.
Why is Vera Health growing so quickly across international markets?
Bennani and Allouch grew up in families of physicians and initially developed Vera Health for their own fathers. What began with two users has since grown into a platform serving hundreds of thousands of clinicians, with physicians asking hundreds of thousands of questions each day. The company’s international growth reflects an approach built around a central reality of medicine. Medical knowledge is global, but clinical practice is local.
An emergency physician in France may follow different treatment guidelines than a physician in the United States. An oncologist reviewing a complex case may need an exhaustive evaluation of the available research, while an emergency physician needs a concise answer within seconds. Even physicians practicing the same specialty may follow different protocols depending on their institution.
Vera Health accounts for those differences by prioritizing locally relevant guidance while drawing on medical research from around the world. Through Vera Spaces, health systems can also integrate their own clinical protocols and pathways alongside national guidelines and international medical literature.
“Medicine is global, yet most tools in our space were built for a single geography,” said Allouch. “We went international from day one, because only a global view reveals what is truly local.”
The approach has helped Vera Health expand across Europe, where approximately 1 in 4 physicians in Spain and Italy and 1 in 7 in France use the platform, according to company data. Vera Health has achieved that international reach with a small team and a product that clinicians have largely discovered through their peers.
What will Vera Health’s Series A funding support next?
The financing will support further development of Vera Health’s clinical evidence infrastructure, expansion into additional healthcare markets and deeper partnerships with medical societies, publishers and health systems. The company will continue investing in locally relevant clinical guidance and tools that allow healthcare institutions to incorporate their own medical knowledge into the platform.
“In healthcare, trust is earned, not bought. Vera’s adoption among clinicians worldwide speaks to what Taieb and Maxime have built. By combining the most rigorous medical evidence with an understanding of each physician’s specialty, protocols and practice context, Vera makes the world’s medical knowledge relevant to how care is actually delivered. We believe that creates an enormous opportunity to improve global health,” said Andrew Brackin, Partner at Gradient.
“Vera is compelling because it starts with the evidence, not just an answer—helping clinicians find and assess the research behind a decision while making its strengths and limitations visible. By bringing that evidence to the point of care, Vera becomes a trusted clinical intelligence layer, not just another AI tool,” said Emily Melton, co-founder and managing partner of Threshold Ventures.
Vera Health will remain free for licensed clinicians and medical trainees worldwide as it expands access to medical evidence and locally relevant clinical guidance.
New medical knowledge takes an estimated 17 years to reach routine clinical practice, according to research published in the Journal of the Royal Society of Medicine. Vera Health aims to reduce the time physicians spend searching for and evaluating that knowledge, bringing relevant evidence closer to the moment clinical decisions are made.
“Our mission is to close the gap between what medicine knows and what every patient receives,” said Bennani. “Today, that gap is measured in years. We want it measured in seconds.”
About Vera Health
Vera Health is the search engine that reasons like a clinician, finding and grading evidence before showing the source, strength and limits behind every answer. More than 800,000 clinicians in 190 countries use Vera, which is free for licensed clinicians and trainees, never trains on clinicians’ questions, and is HIPAA and GDPR compliant and SOC 2 Type II certified. Founded in 2024 at Y Combinator by MIT graduates and sons of physicians Taieb Bennani and Maxime Allouch, Vera is headquartered in San Francisco and backed by Threshold Ventures, Gradient, Y Combinator, SV Angel and Mantis VC.
Learn more at verahealth.ai.
¹ Download data: Appark, worldwide App Store and Google Play downloads, June through [September] 2026.
Media Contact
Interdependence
(949) 259-6377 x 225
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SOURCE Vera Health
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