Technology

Broadcom Inc. Announces First Quarter Fiscal Year 2025 Financial Results and Quarterly Dividend

Published

1 year ago

March 6, 2025

Revenue of $14,916 million for the first quarter, up 25 percent from the prior year periodGAAP net income of $5,503 million for the first quarter; Non-GAAP net income of $7,823 million for the first quarterAdjusted EBITDA of $10,083 million for the first quarter, or 68 percent of revenueGAAP diluted EPS of $1.14 for the first quarter; Non-GAAP diluted EPS of $1.60 for the first quarterCash from operations of $6,113 million for the first quarter, less capital expenditures of $100 million, resulted in $6,013 million of free cash flow, or 40 percent of revenueQuarterly common stock dividend of $0.59 per shareSecond quarter fiscal year 2025 revenue guidance of approximately $14.9 billion, an increase of 19 percent from the prior year periodSecond quarter fiscal year 2025 Adjusted EBITDA guidance of approximately 66 percent of projected revenue (1)

PALO ALTO, Calif., March 6, 2025 /PRNewswire/ — Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its first quarter of fiscal year 2025, ended February 2, 2025, provided guidance for its second quarter of fiscal year 2025 and announced its quarterly dividend.

“Broadcom’s record first quarter revenue and adjusted EBITDA were driven by both AI semiconductor solutions and infrastructure software. Q1 AI revenue grew 77% year-over-year to $4.1 billion and infrastructure software revenue grew 47% year-over-year to $6.7 billion,” said Hock Tan, President and CEO of Broadcom Inc. “We expect continued strength in AI semiconductor revenue of $4.4 billion in Q2, as hyperscale partners continue to invest in AI XPUs and connectivity solutions for AI data centers.”

“Consolidated revenue grew 25% year-over-year to a record $14.9 billion. Adjusted EBITDA increased 41% year-over-year to a record $10.1 billion,” said Kirsten Spears, CFO of Broadcom Inc. “Free cash flow was $6.0 billion, up 28% year-over-year.”

(1) The Company is not readily able to provide a reconciliation of the projected non-GAAP financial information presented to the relevant projected GAAP measure without unreasonable effort.

First Quarter Fiscal Year 2025 Financial Highlights

GAAP

Non-GAAP

(Dollars in millions, except per share data)

Q1 25

Q1 24

Change

Q1 25

Q1 24

Change

Net revenue

14,916

11,961

+25

14,916

11,961

+25

Net income

5,503

1,325

4,178

7,823

5,254

2,569

Earnings per common share – diluted

1.14

0.28

0.86

1.60

1.10

0.50

(Dollars in millions)

Q1 25

Q1 24

Change

Cash flow from operations

6,113

4,815

1,298

Adjusted EBITDA

10,083

7,156

2,927

Free cash flow

6,013

4,693

1,320

Net revenue by segment

(Dollars in millions)

Q1 25

Q1 24

Change

Semiconductor solutions

8,212

7,390

+11

Infrastructure software

6,704

4,571

+47

Total net revenue

14,916

100

11,961

100

The Company’s cash and cash equivalents at the end of the fiscal quarter were $9,307 million, compared to $9,348 million at the end of the prior fiscal quarter.

During the first fiscal quarter, the Company generated $6,113 million in cash from operations and spent $100 million on capital expenditures. The Company paid $2,036 million of withholding taxes related to net settled equity awards that vested in the quarter (resulting in the elimination of 8.7 million shares).

On December 31, 2024, the Company paid a cash dividend of $0.59 per share, totaling $2,774 million.

The differences between the Company’s GAAP and non-GAAP results are described generally under “Non-GAAP Financial Measures” below and presented in detail in the financial reconciliation tables attached to this release.

Second Quarter Fiscal Year 2025 Business Outlook

Based on current business trends and conditions, the outlook for the second quarter of fiscal year 2025, ending May 4, 2025, is expected to be as follows:

Second quarter revenue guidance of approximately $14.9 billion; andSecond quarter Adjusted EBITDA guidance of approximately 66 percent of projected revenue.

The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected Adjusted EBITDA to projected net income without unreasonable effort. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.

Quarterly Dividends

The Company’s Board of Directors has approved a quarterly cash dividend of $0.59 per share. The dividend is payable on March 31, 2025, to stockholders of record at the close of business (5:00 p.m. Eastern Time) on March 20, 2025.

Financial Results Conference Call

Broadcom Inc. will host a conference call to review its financial results for the first quarter of fiscal year 2025 and to discuss the business outlook today at 2:00 p.m. Pacific Time.

To Listen via Internet: The conference call can be accessed live online in the Investors section of the Broadcom website at https://investors.broadcom.com/.

Replay: An audio replay of the conference call can be accessed for one year through the Investors section of Broadcom’s website at https://investors.broadcom.com/.

Non-GAAP Financial Measures

The non-GAAP measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release. Broadcom believes non-GAAP financial information provides additional insight into the Company’s on-going performance. Therefore, Broadcom provides this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company’s on-going operations and enable more meaningful period to period comparisons.

In addition to GAAP reporting, Broadcom provides investors with net income, operating income, gross margin, operating expenses, cash flow and other data on a non-GAAP basis. This non-GAAP information excludes amortization of acquisition-related intangible assets, stock-based compensation expense, restructuring and other charges, acquisition-related costs, including integration costs, non-GAAP tax reconciling adjustments, and other adjustments. Management does not believe that these items are reflective of the Company’s underlying performance. Internally, these non-GAAP measures are significant measures used by management for purposes of evaluating the core operating performance of the Company, establishing internal budgets, calculating return on investment for development programs and growth initiatives, comparing performance with internal forecasts and targeted business models, strategic planning, evaluating and valuing potential acquisition candidates and how their operations compare to the Company’s operations, and benchmarking performance externally against the Company’s competitors. The exclusion of these and other similar items from Broadcom’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent or unusual.

Free cash flow measures have limitations as they omit certain components of the overall cash flow statement and do not represent the residual cash flow available for discretionary expenditures. Investors should not consider presentation of free cash flow measures as implying that stockholders have any right to such cash. Broadcom’s free cash flow may not be calculated in a manner comparable to similarly named measures used by other companies.

About Broadcom

Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops, and supplies a broad range of semiconductor, enterprise software and security solutions. Broadcom’s category-leading product portfolio serves critical markets including cloud, data center, networking, broadband, wireless, storage, industrial, and enterprise software. Our solutions include service provider and enterprise networking and storage, mobile device and broadband connectivity, mainframe, cybersecurity, and private and hybrid cloud infrastructure. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, go to www.broadcom.com.

Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements (including within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements that address our expected future business and financial performance, and other statements identified by words such as “will,” “expect,” “believe,” “anticipate,” “estimate,” “should,” “intend,” “plan,” “potential,” “predict,” “project,” “aim,” and similar words, phrases or expressions. These forward-looking statements are based on current expectations and beliefs of Broadcom’s management, current information available to Broadcom’s management, and current market trends and market conditions and involve risks and uncertainties that may cause actual results to differ materially from those contained in forward-looking statements. Accordingly, undue reliance should not be placed on such statements.

Particular uncertainties that could materially affect future results include risks associated with: global economic conditions and uncertainty; government regulations, trade restrictions and trade tensions; global political and economic conditions relating to our international operations; our acquisition of VMware, Inc., including our ability to realize the expected benefits; any acquisitions or dispositions we may make, such as delays, challenges and expenses associated with receiving governmental and regulatory approvals and satisfying other closing conditions, and with integrating acquired businesses with our existing businesses and our ability to achieve the benefits, growth prospects and synergies expected by such acquisitions; dependence on and risks associated with distributors and other channel partners of our products; dependence on senior management and our ability to attract and retain qualified personnel; our ability to protect against cyber security threats and a breach of security systems; any loss of our significant customers and fluctuations in the timing and volume of significant customer demand; cyclicality in the semiconductor industry or in our target markets; our ability to make successful investments in research and development; our ability to continue achieving design wins with our customers, as well as the timing of any design wins; our dependence on contract manufacturing and outsourced supply chain; our dependency on a limited number of suppliers; prolonged disruptions of our or our contract manufacturers’ manufacturing facilities, warehouses or other significant operations; our ability to accurately estimate customers’ demand and adjust our manufacturing and supply chain accordingly; our ability to improve our manufacturing capacity and quality; involvement in legal proceedings; ability of our software products to manage and secure IT infrastructures and environments; demand for our data center virtualization products and customer acceptance of our products, services and business strategy; compatibility of our software products with operating environments, platforms or third-party products; our ability to enter into satisfactory software license agreements; use of open source software in our products; sales to government customers; our ability to manage products and services lifecycles; quarterly and annual fluctuations in operating results; our competitive performance; our ability to maintain or improve gross margin; our ability to protect our intellectual property and the unpredictability of any associated litigation expenses; any expenses or reputational damage associated with resolving customer product warranty and indemnification claims, or other undetected defects or bugs; our compliance with privacy and data security laws; our provision for income taxes and overall cash tax costs; our ability to maintain tax concessions in certain jurisdictions; potential tax liabilities as a result of acquiring VMware; our significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; and other events and trends on a national, regional, industry-specific and global scale, including those of a political, economic, business, competitive and regulatory nature.

Our filings with the SEC, which are available without charge at the SEC’s website at https://www.sec.gov, discuss some of the important risk factors that may affect our business, results of operations and financial condition. Actual results may vary from the estimates provided. We undertake no intent or obligation to publicly update or revise any of the estimates and other forward-looking statements made in this announcement, whether as a result of new information, future events or otherwise, except as required by law.

Contact:
Ji Yoo
Broadcom Inc.
Investor Relations
650-427-6000
investor.relations@broadcom.com

(AVGO-Q)

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – UNAUDITED

(IN MILLIONS, EXCEPT PER SHARE DATA)

Fiscal Quarter Ended

February 2,

November 3,

February 4,

2025

2024

Net revenue

14,916

14,054

11,961

Cost of revenue:

Cost of revenue

3,273

3,399

3,114

Amortization of acquisition-related intangible assets

1,484

1,602

1,380

Restructuring charges

Total cost of revenue

4,771

5,052

4,586

Gross margin

10,145

9,002

7,375

Research and development

2,253

2,234

2,308

Selling, general and administrative

949

1,010

1,572

Amortization of acquisition-related intangible assets

511

813

792

Restructuring and other charges

172

318

620

Total operating expenses

3,885

4,375

5,292

Operating income

6,260

4,627

2,083

Interest expense

(873)

(916)

(926)

Other income, net

103

185

Income from continuing operations before income taxes

5,490

3,763

1,342

Provision for (benefit from) income taxes

(13)

(442)

Income from continuing operations

5,503

4,205

1,274

Income from discontinued operations, net of income taxes

–

119

Net income

5,503

4,324

1,325

Basic income per share:

Income per share from continuing operations

1.17

0.89

0.28

Income per share from discontinued operations

–

0.03

0.01

Net income per share

1.17

0.92

0.29

Diluted income per share:

Income per share from continuing operations

1.14

0.87

0.27

Income per share from discontinued operations

–

0.03

0.01

Net income per share

1.14

0.90

0.28

Weighted-average shares used in per share calculations:

Basic

4,695

4,679

4,517

Diluted

4,836

4,828

4,666

Stock-based compensation expense included in continuing operations:

Cost of revenue

153

159

161

Research and development

822

839

863

Selling, general and administrative

305

316

548

Total stock-based compensation expense

1,280

1,314

1,572

BROADCOM INC.

FINANCIAL RECONCILIATION: GAAP TO NON-GAAP – UNAUDITED

(IN MILLIONS)

Fiscal Quarter Ended

February 2,

November 3,

February 4,

2025

2024

Gross margin on GAAP basis

10,145

9,002

7,375

Amortization of acquisition-related intangible assets

1,484

1,602

1,380

Stock-based compensation expense

153

159

161

Restructuring charges

Acquisition-related costs

–

Gross margin on non-GAAP basis

11,796

10,814

9,014

Research and development on GAAP basis

2,253

2,234

2,308

Stock-based compensation expense

822

839

863

Acquisition-related costs

–

Research and development on non-GAAP basis

1,431

1,395

1,444

Selling, general and administrative expense on GAAP basis

949

1,010

1,572

Stock-based compensation expense

305

316

548

Acquisition-related costs

107

285

Selling, general and administrative expense on non-GAAP basis

537

608

739

Total operating expenses on GAAP basis

3,885

4,375

5,292

Amortization of acquisition-related intangible assets

511

813

792

Stock-based compensation expense

1,127

1,155

1,411

Restructuring and other charges

172

318

620

Acquisition-related costs

107

286

Total operating expenses on non-GAAP basis

1,968

2,003

2,183

Operating income on GAAP basis

6,260

4,627

2,083

Amortization of acquisition-related intangible assets

1,995

2,415

2,172

Stock-based compensation expense

1,280

1,314

1,572

Restructuring and other charges

186

369

712

Acquisition-related costs

107

292

Operating income on non-GAAP basis

9,828

8,811

6,831

Interest expense on GAAP basis

(873)

(916)

(926)

Loss on debt extinguishment

–

Interest expense on non-GAAP basis

(808)

(864)

(926)

Other income, net on GAAP basis

103

185

(Gains) losses on investments

(33)

Other

(31)

–

Other income, net on non-GAAP basis

152

Provision for (benefit from) income taxes on GAAP basis

(13)

(442)

Non-GAAP tax reconciling adjustments

1,286

1,506

735

Provision for income taxes on non-GAAP basis

1,273

1,064

803

Net income on GAAP basis

5,503

4,324

1,325

Amortization of acquisition-related intangible assets

1,995

2,415

2,172

Stock-based compensation expense

1,280

1,314

1,572

Restructuring and other charges

186

369

712

Acquisition-related costs

107

292

Loss on debt extinguishment

–

(Gains) losses on investments

(33)

Other

(31)

–

Non-GAAP tax reconciling adjustments

(1,286)

(1,506)

(735)

Income from discontinued operations, net of income taxes

–

(119)

(51)

Net income on non-GAAP basis

7,823

6,965

5,254

Net income on GAAP basis

5,503

4,324

1,325

Non-GAAP Adjustments:

Amortization of acquisition-related intangible assets

1,995

2,415

2,172

Stock-based compensation expense

1,280

1,314

1,572

Restructuring and other charges

186

369

712

Acquisition-related costs

107

292

Loss on debt extinguishment

–

(Gains) losses on investments

(33)

Other

(31)

–

Non-GAAP tax reconciling adjustments

(1,286)

(1,506)

(735)

Income from discontinued operations, net of income taxes

–

(119)

(51)

Other Adjustments:

Interest expense

808

864

926

Provision for income taxes on non-GAAP basis

1,273

1,064

803

Depreciation

142

156

139

Amortization of purchased intangibles and right-of-use assets

Adjusted EBITDA

10,083

9,089

7,156

Weighted-average shares used in per share calculations – diluted on GAAP basis

4,836

4,828

4,666

Non-GAAP adjustment (1)

113

Weighted-average shares used in per share calculations – diluted on non-GAAP basis

4,895

4,905

4,779

Net cash provided by operating activities

6,113

5,604

4,815

Purchases of property, plant and equipment

(100)

(122)

Free cash flow

6,013

5,482

4,693

Fiscal
Quarter

Ending

May 4,

Expected average diluted share count:

2025

Weighted-average shares used in per share calculation – diluted on GAAP basis

4,840

Non-GAAP adjustment (1)

107

Weighted-average shares used in per share calculation – diluted on non-GAAP basis

4,947

(1) Non-GAAP adjustment for the number of shares used in the diluted per share calculations excludes the impact of stock-based compensation
expense expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be
used to repurchase shares under the GAAP treasury stock method.

BROADCOM INC.

CONDENSED CONSOLIDATED BALANCE SHEETS – UNAUDITED

(IN MILLIONS)

February 2,

November 3,

2025

2024

ASSETS

Current assets:

Cash and cash equivalents

9,307

9,348

Trade accounts receivable, net

4,955

4,416

Inventory

1,908

1,760

Other current assets

4,820

4,071

Total current assets

20,990

19,595

Long-term assets:

Property, plant and equipment, net

2,465

2,521

Goodwill

97,871

97,873

Intangible assets, net

38,583

40,583

Other long-term assets

5,449

5,073

Total assets

165,358

165,645

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

1,905

1,662

Employee compensation and benefits

922

1,971

Short-term debt

5,653

1,271

Other current liabilities

12,430

11,793

Total current liabilities

20,910

16,697

Long-term liabilities:

Long-term debt

60,926

66,295

Other long-term liabilities

13,733

14,975

Total liabilities

95,569

97,967

Stockholders’ equity:

Preferred stock

–

Common stock

Additional paid-in capital

66,848

67,466

Retained earnings

2,729

–

Accumulated other comprehensive income

207

Total stockholders’ equity

69,789

67,678

Total liabilities and equity

165,358

165,645

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – UNAUDITED

(IN MILLIONS)

Fiscal Quarter Ended

February 2,

November 3,

February 4,

2025

2024

Cash flows from operating activities:

Net income

5,503

4,324

1,325

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

Amortization of intangible and right-of-use assets

2,032

2,455

2,206

Depreciation

142

156

139

Stock-based compensation

1,280

1,314

1,582

Deferred taxes and other non-cash taxes

(696)

(868)

(294)

Loss on debt extinguishment

–

Non-cash interest expense

102

Other

138

Changes in assets and liabilities, net of acquisitions and disposals:

Trade accounts receivable, net

(539)

249

1,756

Inventory

(148)

134

(14)

Accounts payable

241

(85)

(74)

Employee compensation and benefits

(908)

196

(660)

Other current assets and current liabilities

(1,410)

(2,182)

Other long-term assets and long-term liabilities

(1,023)

(1,142)

891

Net cash provided by operating activities

6,113

5,604

4,815

Cash flows from investing activities:

Acquisition of business, net of cash acquired

–

(25,416)

Purchases of property, plant and equipment

(100)

(122)

Purchases of investments

(105)

(30)

(13)

Sales of investments

Other

–

(15)

Net cash used in investing activities

(174)

(132)

(25,477)

Cash flows from financing activities:

Proceeds from long-term borrowings

2,986

4,969

30,010

Payments on debt obligations

(8,090)

(7,472)

(934)

Proceeds from commercial paper, net

3,980

–

Payments of dividends

(2,774)

(2,484)

(2,435)

Repurchases of common stock – repurchase program

–

(7,176)

Shares repurchased for tax withholdings on vesting of equity awards

(2,036)

(1,204)

(1,114)

Issuance of common stock

–

126

–

Other

(46)

(11)

(14)

Net cash provided by (used in) financing activities

(5,980)

(6,076)

18,337

Net change in cash and cash equivalents

(41)

(604)

(2,325)

Cash and cash equivalents at beginning of period

9,348

9,952

14,189

Cash and cash equivalents at end of period

9,307

9,348

11,864

Supplemental disclosure of cash flow information:

Cash paid for interest

671

738

750

Cash paid for income taxes

404

832

904

View original content:https://www.prnewswire.com/news-releases/broadcom-inc-announces-first-quarter-fiscal-year-2025-financial-results-and-quarterly-dividend-302395106.html

SOURCE Broadcom Inc.

Technology

OppFi Reports First Quarter 2026 Results, Record Quarterly Revenue

Published

2 hours ago

May 7, 2026

Total revenue increased 8.3% year over year to $151.9 million, a Company record for the first quarter

Net income increased 165.0% year over year to $54.0 million

Adjusted net income1 decreased 11.2% year over year to $30.0 million

Board approves new $40 million Share Repurchase Program

CHICAGO, May 7, 2026 /PRNewswire/ — OppFi Inc. (NYSE: OPFI) (“OppFi” or the “Company”), a tech-enabled digital finance platform that partners with banks to offer financial products and services to everyday Americans, today reported financial results for the first quarter ended March 31, 2026.

“Operationally, OppFi had a healthy start to 2026, generating record first-quarter revenue, which reflects the strength of our core operations. Strategically, we believe 2026 is a pivotal year of investment for OppFi as we evolve the business with the transformative combination of OppFi’s digital-first platform and BNC’s national bank charter. This initiative unlocks significant opportunities for growth and product diversification. Combining our operations under unified regulatory supervision by the OCC and Federal Reserve simplifies and strengthens our compliance and risk management, which positions us for long-term scalability and sustainable growth,” said Todd Schwartz, CEO and Executive Chairman of OppFi. Our new share repurchase program reflects our continued confidence in OppFi’s long-term growth prospects, our commitment to returning value to our stockholders and belief that our stock currently trades at a significant discount to its underlying value,” Todd Schwartz added.

(1) Non-GAAP Financial Measures: Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” below for a detailed description and reconciliation of such non-GAAP financial measures to their most directly comparable GAAP financial measures.

Financial Summary

The following table presents a summary of OppFi’s results for the three months ended March 31, 2026 and 2025 (in thousands, except per share data)†. Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.

Three Months Ended March 31,

Change

(Unaudited)

2026

2025

Total revenue(1)

$ 151,881

$ 140,268

8.3 %

Net income

$ 54,038

$ 20,390

165.0 %

Net income (loss) attributable to OppFi Inc.

$ 28,401

$ (11,372)

349.7 %

Adjusted net income(2)

$ 30,045

$ 33,817

(11.2) %

Basic EPS

$ 1.06

$ (0.48)

321.0 %

Diluted EPS(3)

$ 0.56

$ (0.48)

215.7 %

Adjusted EPS(2,3)

$ 0.35

$ 0.38

(9.3) %

† The financial results do not reflect the simplification of OppFi’s corporate structure to collapse its prior Up-C structure, which occurred after the end of the quarter.

(1) Total revenue is calculated as the sum of interest on finance receivables and other revenue.

(2) Adjusted Net Income and Adjusted EPS are non-GAAP financial measures. See “Reconciliation of Non-GAAP Financial Measures” below for a detailed description and reconciliation of such non-GAAP financial measures to their most directly comparable GAAP financial measures.

(3) Diluted EPS calculated on a GAAP basis excludes dilutive securities, including Class V Voting Stock, restricted stock units, performance stock units, and stock options in any periods in which their inclusion would have an antidilutive effect.

Key Performance Metrics

The following table represents key quarterly metrics as of and for the three months ended March 31, 2026 and 2025 (in thousands, except percentage metrics).

As of and for the Three Months Ended

(Unaudited)

March 31, 2026

March 31, 2025

Total net originations(a)

$ 175,975

$ 189,168

Total retained net originations(a)

$ 151,449

$ 168,963

Ending receivables(b)

$ 444,922

$ 406,579

Net charge-offs as % of total revenue(c)

42.5 %

34.6 %

Net charge-offs as % of average receivables, annualized(c)

55.5 %

47.0 %

Average yield, annualized(d)

130.7 %

135.8 %

Auto-approval rate(e)

79 %

(a) Total net originations are defined as gross originations net of transferred balance on refinanced loans, while total retained net originations are defined as the portion of total net originations with respect to which the Company ultimately purchased a receivable from bank partners.

(b) Ending receivables are defined as the unpaid principal balances of loans at the end of the reporting period.

(c) Net charge-offs as a percentage of total revenue and net charge-offs as a percentage of average receivables represent total charge-offs from the period less recoveries as a percentage of total revenue and as a percentage of average receivables. Net charge-offs as a percentage of average receivables is presented as an annualized metric. Finance receivables are charged off at the earlier of the time when accounts reach 90 days past due on a recency basis, when OppFi receives notification of a customer bankruptcy or is otherwise deemed uncollectible.

(d) Average yield is defined as total revenue from the period as a percent of average receivables and is presented as an annualized metric.

(e) Auto-approval rate is calculated by taking the number of approved loans that are not decisioned by a loan processor or underwriter (auto-approval) divided by the total number of loans approved.

Share Repurchase Program

During the three months ended March 31, 2026, OppFi repurchased 1,040,699 shares of Class A Common Stock, which were held as treasury stock, for an aggregate purchase price of $9.9 million at an average purchase price per share of $9.54. As of March 31, 2026, $11.0 million of the repurchase authorization under the Company’s prior repurchase program remained available. On May 6, 2026, the Board of Directors of OppFi approved a new share repurchase program under which the Company may repurchase up to $40 million of its Class A Common Stock. This new program replaces the Company’s prior share repurchase program, which was terminated.

Repurchases under the new program may be made from time to time on the open market, through privately negotiated transactions, or via other methods, in accordance with applicable securities laws and other relevant legal requirements. The timing and amount of repurchases will depend on market conditions, share price, trading volume and other factors. The new program does not obligate the Company to repurchase any specific dollar amount or number of shares, and it may be extended, modified, suspended or discontinued at any time.

Conference Call

Management will host a conference call today at 9:00 a.m. ET to discuss OppFi’s financial results and business outlook. The webcast of the conference call will be made available on the Investor Relations page of the Company’s website.

The conference call can also be accessed with the following dial-in information:

Domestic: (800) 579-2543International: (785) 424-1789Conference ID: OPPFI

An archived version of the webcast will be available on OppFi’s website.

About OppFi

OppFi (NYSE: OPFI) is a tech-enabled digital finance platform that partners with banks to offer financial products and services to everyday Americans. Through this transparent and responsible platform, which emphasizes financial inclusion and exceptional customer experience, the Company assists consumers who are underserved by traditional financing options in building improved financial health. OppLoans by OppFi maintains a 4.4/5.0 star rating on Trustpilot based on over 5,500 reviews, positioning the Company among the top consumer-rated financial platforms online. OppFi also holds a 35% equity interest in Bitty Holdings, LLC (“Bitty”), a credit access company that provides revenue-based financing and other working capital solutions to small businesses. For additional information, please visit oppfi.com.

Important Additional Information will be Filed with the SEC

In connection with the proposed transaction between OppFi and BNCCORP, Inc. (“BNCC”), OppFi will file with the U.S. Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 (the “registration statement”), which will contain a proxy statement of BNCC and a prospectus of OppFi (the “proxy statement/prospectus”), and OppFi may file with the SEC other relevant documents regarding the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS CAREFULLY AND IN THEIR ENTIRETY AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BY OPPFI, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT OPPFI, BNC AND THE PROPOSED TRANSACTION. A definitive copy of the proxy statement/prospectus will be mailed to stockholders of BNCC when that document is final. Investors and security holders will be able to obtain the registration statement and the proxy statement/prospectus, as well as other filings containing information about OppFi, free of charge from OppFi or from the SEC’s website when they are filed by OppFi. The documents filed by OppFi with the SEC may be obtained free of charge at OppFi’s website, at https://investors.oppfi.com/financials/sec-filings/default.aspx, or by requesting them by mail at 130 E. Randolph Street, Suite 3400, Chicago, IL 60601 or by email at corporate.secretary@oppfi.com.

Participants in a Solicitation

This communication is not a solicitation of a proxy from any security holder of BNCC or OppFi. However, OppFi, BNCC and certain of their respective directors and executive officers may be deemed to be participants in a solicitation of proxies from the stockholders of BNCC in respect of the proposed transaction. Information about OppFi’s directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2025 and other documents filed by OppFi with the SEC. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available. Free copies of this document may be obtained as described in the preceding paragraph.

This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities of OppFi or a solicitation of any vote or approval with respect to the proposed transaction by OppFi or BNCC, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.

Contacts:

Investor Relations:
Mike Gallentine
Head of Investor Relations
mgallentine@oppfi.com

Media Relations:
media@oppfi.com

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. OppFi’s actual results may differ from its expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “opportunity,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “possible,” “continue,” “positions,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, without limitation, OppFi’s expectations with respect to its full year 2026 guidance, the future performance of OppFi’s platform and underwriting models, statements regarding OppFi’s proposed acquisition of BNCC, including the anticipated timing, structure, benefits and strategic rationale of such transactions, OppFi’s expectations with respect to the geographic expansion and product diversification that may come from the acquisition, and expectations for OppFi’s growth and future financial performance. These forward-looking statements are based on OppFi’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside OppFi’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to, the impact of general economic conditions, including economic slowdowns, inflation, interest rate changes, recessions, the impact of tariffs, and tightening of credit markets on OppFi’s business; the impact of challenging macroeconomic and marketplace conditions; the impact of stimulus or other government programs; risks related to the proposed acquisition of BNCC including the risk that the transactions may not be completed in a timely manner or at all and the risk of integration or execution challenges; whether OppFi will be successful in obtaining declaratory relief against the Commissioner of the Department of Financial Protection and Innovation for the State of California; whether OppFi will be subject to AB 539; whether OppFi’s bank partners will continue to lend in California and whether OppFi’s financing sources will continue to finance the purchase of participation rights in loans originated by OppFi’s bank partners in California; OppFi’s ability to scale and grow the Bitty business; the impact that events involving financial institutions or the financial services industry generally, such as actual concerns or events involving liquidity, defaults, or non-performance, may have on OppFi’s business; risks related to any material weakness in OppFi’s internal controls over financial reporting; the ability of OppFi to grow and manage growth profitably and retain its key employees; risks related to new products; risks related to evaluating and potentially consummating acquisitions; concentration risk; risks related to OppFi’s ability to comply with various covenants in its corporate and warehouse credit facilities; risks related to potential litigation; changes in applicable laws or regulations, including, but not limited to, impacts from the One Big Beautiful Bill Act; the possibility that OppFi may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties indicated from time to time in OppFi’s filings with the United States Securities and Exchange Commission, in particular, contained in the section captioned “Risk Factors.” OppFi cautions that the foregoing list of factors is not exclusive, and readers should not place undue reliance upon any forward-looking statements, which speak only as of the date made. OppFi does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures that are unaudited and do not conform to GAAP, such as Adjusted EBT, Adjusted Net Income, and Adjusted EPS. Adjusted EBT is defined as Net Income, adjusted for (1) income tax expense; (2) change in fair value of warrant liabilities; (3) other adjustments, net; and (4) other income. Adjusted Net Income is defined as Adjusted EBT as defined above, adjusted for taxes assuming a tax rate for each period presented that reflects the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes, in order to allow for a comparison with other publicly traded companies. Adjusted EPS is defined as Adjusted Net Income as defined above, divided by weighted average diluted shares outstanding, which represents shares of both classes of common stock outstanding and includes the impact of dilutive securities, such as restricted stock units, performance stock units, and stock options. These non-GAAP financial measures have not been prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies. OppFi believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures with comparable names should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. See “Reconciliation of Non-GAAP Financial Measures” below for reconciliations for OppFi’s non-GAAP financial measures to the most directly comparable GAAP financial measures.

First Quarter Results of Operations

Consolidated Statements of Operations

The following table present consolidated results of operations for the three months ended March 31, 2026 and 2025 (in thousands, except share and per share data). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.

Three Months Ended March 31,

Change

(Unaudited)

2026

2025

Revenue:

Interest and loan related income

$ 150,526

$ 139,118

$ 11,408

8.2 %

Other revenue

1,355

1,150

205

17.8

151,881

140,268

11,613

8.3

Change in fair value of finance receivables

(64,583)

(49,458)

(15,125)

30.6

Net revenue

87,298

90,810

(3,512)

(3.9)

Expenses:

Salaries and employee benefits

14,254

13,778

476

3.5

Direct marketing costs

10,385

10,288

0.9

Interest expense and amortized debt issuance costs

8,510

10,247

(1,737)

(17.0)

Professional fees

7,264

4,199

3,065

73.0

Technology costs

3,329

2,961

368

12.4

Payment processing fees

1,658

1,630

1.7

Occupancy

871

1,039

(168)

(16.2)

Depreciation and amortization

591

1,760

(1,169)

(66.4)

General, administrative and other

5,074

2,416

2,658

110.0

Total expenses

51,936

48,318

3,618

7.5

Income from operations

35,362

42,492

(7,130)

(16.8)

Other income (expense):

Change in fair value of warrant liabilities

21,295

(21,607)

42,902

198.6

Income from equity method investment

1,120

1,076

4.1

Other income

232

152

191.1

Income before income taxes

58,009

22,041

35,968

163.2

Income tax expense

3,971

1,651

2,320

140.5

Net income

54,038

20,390

33,648

165.0

Less: net income attributable to noncontrolling interest

25,637

31,762

(6,125)

(19.3)

Net income (loss) attributable to OppFi Inc.

$ 28,401

$ (11,372)

$ 39,773

349.7 %

Earnings (loss) per common share attributable to OppFi Inc.:

Earnings (loss) per common share:

Basic

$ 1.06

$ (0.48)

Diluted

$ 0.56

$ (0.48)

Weighted average common shares outstanding:

Basic

26,778,432

23,691,769

Diluted

86,195,269

23,691,769

Condensed Consolidated Balance Sheets

The following table presents consolidated balance sheets as of March 31, 2026 and December 31, 2025 (in thousands). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.

(Unaudited)

March 31,

December 31,

Change

2026

2025

Assets

Cash and restricted cash

$ 99,920

$ 93,263

$ 6,657

7.1 %

Finance receivables at fair value

502,558

546,236

(43,678)

(8.0)

Equity method investment

19,145

19,076

0.4

Other assets

98,364

95,515

2,849

3.0

Total assets

$ 719,987

$ 754,090

$ (34,103)

(4.5) %

Liabilities and stockholders’ equity

Accounts payable and accrued expenses

$ 41,610

$ 46,171

$ (4,561)

(9.9) %

Other liabilities

45,975

51,235

(5,260)

(10.3)

Total debt

284,260

321,353

(37,093)

(11.5)

Warrant liabilities

5,160

26,455

(21,295)

(80.5)

Total liabilities

377,005

445,214

(68,209)

(15.3)

Total stockholders’ equity

342,982

308,876

34,106

11.0

Total liabilities and stockholders’ equity

$ 719,987

$ 754,090

$ (34,103)

(4.5) %

Condensed Consolidated Statement of Cash Flows

The following table presents the consolidated statement of cash flows for the three months ended March 31, 2026 and 2025 (in thousands). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.

Three Months Ended March 31,

Change

(Unaudited)

2026

2025

Net cash provided by operating activities

$ 90,779

$ 83,740

$ 7,039

8.4 %

Net cash used in investing activities

(21,436)

(34,241)

12,805

(37.4)

Net cash used in financing activities

(62,686)

(47,019)

(15,667)

33.3

Net increase in cash and restricted cash

$ 6,657

$ 2,480

$ 4,177

168.4 %

Financial Capacity and Capital Resources

As of March 31, 2026, OppFi had $63.9 million in unrestricted cash, an increase of $14.4 million from December 31, 2025. As of March 31, 2026, OppFi had an additional $240.7 million of unused debt capacity under our financing facilities for future availability, representing a 46% overall undrawn capacity, an increase from $203.6 million as of December 31, 2025. The increase in undrawn debt was driven primarily by a decrease in the utilization of revolving lines of credit. Including total financing commitments of $525.0 million and cash and restricted cash on the balance sheet of $99.9 million, OppFi had approximately $624.9 million in funding capacity as of March 31, 2026.

Reconciliation of Non-GAAP Financial Measures

The following tables present reconciliations of non-GAAP financial measures for the three months ended March 31, 2026 and 2025 (in thousands, except share and per share data). Certain columns and rows may not sum due to the use of rounded numbers for disclosure purposes. Percentages presented are calculated from the underlying whole-dollar amounts.

Adjusted EBT and Adjusted Net Income

Comparison of the three months ended March 31, 2026 and 2025

Three Months Ended March 31,

Change

(Unaudited)

2026

2025

Net income

$ 54,038

$ 20,390

$ 33,648

165.0 %

Income tax expense

3,971

1,651

2,320

140.5

Other income

(232)

(80)

(152)

191.1

Change in fair value of warrant liabilities

(21,295)

21,607

(42,902)

(198.6)

Other adjustments, net(a)

3,035

609

2,426

398.4

Adjusted EBT

39,517

44,177

(4,660)

(10.5)

Less: pro forma taxes(b)

9,472

10,360

(888)

(8.6)

Adjusted net income

$ 30,045

$ 33,817

$ (3,772)

(11.2) %

Adjusted earnings per share

$ 0.35

$ 0.38

Weighted average diluted shares outstanding

86,195,269

87,991,698

(a) For the three months ended March 31, 2026, other adjustments, net of $3.0 million included $1.7 million in expenses related to stock compensation, $1.0 million in expenses related to corporate development, $0.2 million in expenses related to severance, and $0.1 million in expenses related to legal matters. For the three months ended March 31, 2025, other adjustments, net of $0.6 million included $1.3 million in expenses related to stock compensation, $0.3 million in expenses related to severance, $0.3 million in expenses related to legal matters, and $0.2 million in expenses related to an adjustment to the Company’s outstanding lease obligations, partially offset by a $1.4 million addback related to the partial forgiveness of remaining expenses related to OppFi Card’s exit activities. The sum of the individual components of other adjustments, net may not equal the total presented due to the use of rounded numbers for disclosure purposes.

(b) Assumes a tax rate of 23.97% for the three months ended March 31, 2026 and 23.45% for the three months ended March 31, 2025, reflecting the U.S. federal statutory rate of 21% and a blended statutory rate for state income taxes.

Adjusted Earnings Per Share

Comparison of the three months ended March 31, 2026 and 2025

Three Months Ended March 31,

(Unaudited)

2026

2025

Weighted average Class A common stock outstanding

26,778,432

23,691,769

Weighted average Class V voting stock outstanding

58,694,615

62,698,935

Dilutive impact of restricted stock units

556,584

1,341,739

Dilutive impact of performance stock units

12,994

62,377

Dilutive impact of stock options

152,644

196,878

Weighted average diluted shares outstanding

86,195,269

87,991,698

Three Months Ended March 31,

(In thousands, except share and per share data)

2026

2025

(Unaudited)

Per Share

Weighted average diluted shares outstanding

86,195,269

87,991,698

Net income

$ 54,038

$ 0.63

$ 20,390

$ 0.23

Income tax expense

3,971

0.05

1,651

0.02

Other income

(232)

—

(80)

—

Change in fair value of warrant liabilities

(21,295)

(0.25)

21,607

0.25

Other adjustments, net(a)

3,035

0.04

609

0.01

Adjusted EBT

39,517

0.46

44,177

0.50

Less: pro forma taxes(b)

9,472

0.11

10,360

0.12

Adjusted net income

$ 30,045

$ 0.35

$ 33,817

$ 0.38

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SOURCE OppFi

Technology

AAON Reports First Quarter 2026 Results with Record Sales and Backlog, Robust Earnings Growth, and Raises Full-Year Guidance

Published

2 hours ago

May 7, 2026

First Quarter 2026 Results
(All comparisons are year-over-year, unless otherwise noted)

Delivered record sales and accelerated earnings growth on strong demand and expanding production throughputNet sales grew 54.3% to a record $496.9 millionOperating margins reflected early benefits from improving utilization, with margin improvement expected to build as capacity absorption improvesGAAP diluted EPS increased 37.1% to $0.48 reflecting strong earnings growth on higher volumeTotal backlog increased 107.4% to a record $2.1 billion, driven by continued strength from the data center market

Raises 2026 Outlook

2026 outlook now reflects revenue growth of 40%-45%% and gross margins of approximately 27-28%, supported by record backlog, expanded capacity, and improving operational execution

TULSA, Okla., May 7, 2026 /PRNewswire/ — AAON, INC. (NASDAQ-AAON), a leader in high-performing, energy-efficient HVAC solutions that bring long-term value to customers and owners, today announced its results for the first quarter of 2026.

First Quarter 2026 Results

Net sales for the first quarter of 2026 increased 54.3% to $496.9 million, from $322.1 million in the first quarter of 2025. This growth was driven by strong demand across both the AAON and BASX brands, and accelerating production throughput made possible by investments made in capacity and operational execution. BASX-branded sales increased 72.4% to $228.6 million, reflecting continued strength in data center cooling demand, higher production volumes, and increased utilization of recently commissioned capacity. AAON-branded sales increased 41.6% to $268.4 million, supported by a strong backlog and accelerating production rates. Booking activity remained solid across both brands, supporting continued share gains and elevated backlog levels. BASX-branded products ended the quarter with backlog up 160.0%, while AAON‑branded bookings demonstrated continued resilience in a softer market environment.

Gross profit margin in the quarter was 25.1%, compared to 26.8% in the prior-year period. The year‑over‑year decline reflected unabsorbed fixed costs associated with recent capacity investments, temporary outsourcing used to support accelerated growth, and transitory price and cost timing dynamics. These effects are intentional and temporary, and are expected to unwind as internal capacity scales and utilization improves.

Selling, general and administrative expenses as a percent of sales declined 220 basis points to 13.7%, demonstrating strong operating leverage and disciplined cost management.

Earnings per diluted share were $0.48, an increase of 37.1% from $0.35 in the first quarter of 2025.

“First‑quarter results demonstrate strong earnings growth driven by higher volume, improved execution, and continued share gains,” said President and CEO Matt Tobolski. “We delivered record sales, improved cash flow, and higher production throughput across our manufacturing network. Importantly, the additional volume we are taking on is carrying attractive incremental contribution, allowing earnings to grow while we intentionally sequence margin improvement during this phase of capacity ramp.

“Our backlog provides exceptional visibility, particularly across the BASX-brand, and positions us to drive continued growth as we move through the year. At the same time, increasing utilization across existing capacity is expected to support margin improvement over time as fixed costs are absorbed, equipment comes fully online, and productivity continues to improve.

“As we progress through 2026, our priorities are clear and unchanged. Drive throughput, convert backlog, and deliver disciplined margin progression over time. We have built the foundation, and we are now focused on converting that foundation into durable earnings power and long-term returns.”

Backlog

March 31, 2026

December 31, 2025

March 31, 2025

(in thousands)

AAON-branded products

$ 509,806

$ 526,350

$ 403,863

BASX-branded products

1,619,649

1,302,145

623,006

$ 2,129,455

$ 1,828,495

$ 1,026,869

Total backlog increased 107.4% year-over-year to $2.13 billion, and increased 16.5% sequentially. The sequential growth was driven entirely by the BASX brand, with backlog increasing 24.4% from the prior quarter. Sustained data center demand and BASX’s custom-engineered solutions continue to support share gains. As planned, AAON-branded products backlog declined sequentially 3.1%, reflecting a deliberate increase in production to address extended lead times, with manufacturing output exceeding order intake during the quarter. Order activity of AAON equipment remained solid, supporting continued share gains despite softer end-market conditions.

2026 Outlook

Dr. Tobolski concluded, “We are encouraged by the start of the year and the momentum we are seeing across the business. Backlog and demand remain exceptionally strong, providing the visibility and stability needed to maintain a sharp focus on execution, production ramp‑up, and customer fulfillment. We are pleased with the benefits we are starting to see from operational investments, and we have meaningful opportunity ahead to further increase production volumes and enhance productivity, which support improved results over time.

“We now expect 2026 sales to grow 40%-45%, with gross margin of 27%-28%, reflecting intentional ramp decisions early in the year and improving margin as utilization and productivity increases through the year. We anticipate SG&A expenses as a percentage of sales will be 14%-15% and expect depreciation and amortization expenses of $95-$100 million.”

Current

Prior

Metric

FY26

YoY Sales Growth

40%-45%

18%-20%

Gross Profit Margin

27%-28%

29%-31%

SG&A as a % of sales

14%-15%

~16%

Depreciation & Amortization

$95M-$100M

Segment Results

AAON Oklahoma

Three Months Ended

(in thousands)

March 31, 2026

December 31, 2025

March 31, 2025

Net sales

$ 243,967

$ 215,503

$ 161,838

Gross profit

$ 64,272

$ 59,168

$ 40,600

Gross profit margin

26.3 %

27.5 %

25.1 %

Net sales for the AAON Oklahoma segment totaled $244.0 million, an increase of 50.7% year-over-year, driven by a strong starting backlog and ongoing production enhancements that improved backlog conversion despite a challenging industry environment. First‑quarter 2026 results also benefited from an easier year‑over‑year comparison, as the prior‑year period was disrupted by the industry’s refrigerant transition, contributing to regained market share.

Gross margin for the segment was 26.3%, compared to 25.1% in the first quarter of 2025. Overhead expenses associated with the new Memphis facility impacted segment margin by $9.8 million. Excluding these costs, segment margins were 29.6%. During the quarter, the segment was impacted by elevated outsourcing levels, price‑cost timing dynamics, and tariff‑related costs, all of which are temporary and do not change the long-term earnings power of the segment.

AAON Coil Products

Three Months Ended

(in thousands)

March 31, 2026

December 31, 2025

March 31, 2025

Net sales

$ 117,611

$ 102,619

$ 94,023

Gross profit

$ 28,302

$ 21,827

$ 29,858

Gross profit margin

24.1 %

21.3 %

31.8 %

Net sales for the AAON Coil Products segment totaled $117.6 million, up 25.1% compared to the same period last year. Growth was driven primarily by BASX-branded liquid cooling sales of $93.2 million, up 40.5% during the period, while AAON‑branded sales declined 11.8% year-over-year.

AAON Coil Products gross margin was 24.1%, declining year-over-year from 31.8%, but increasing sequentially from 21.3%. The sequential margin expansion reflected improved operating leverage on higher throughput at the Longview facility, including a favorable mix of higher-margin BASX sales.

BASX

Three Months Ended

(in thousands)

March 31, 2026

December 31, 2025

March 31, 2025

Net sales

$ 135,358

$ 106,095

$ 66,193

Gross profit

$ 32,391

$ 28,775

$ 15,906

Gross profit margin

23.9 %

27.1 %

24.0 %

Net sales for the BASX segment increased 104.5% to $135.4 million from $66.2 million in the prior-year period. The year-over-year growth reflected strong demand for data center equipment, supported by robust order intake and elevated backlog levels. Increased production from the Company’s new Memphis facility played a key role by expanding capacity and driving higher sales volumes.

BASX segment gross margin was 23.9%, unchanged from the prior-year period. Margin stability reflected strong volume growth, offset by incremental resources and investments to support future growth and share gains. These incremental costs also contributed to the sequential margin contraction.

Balance Sheet & Cash Flow

As of March 31, 2026, the company had cash, cash equivalents and restricted cash of $1.1 million and a balance on its revolving credit facility of $425.2 million. Andy Cheung, CFO and Treasurer, commented, “During the first quarter, operating cash flow totaled $34.0 million, representing the highest level since the third quarter of 2024. This improvement reflected higher earnings and enhanced working capital efficiency. Capital expenditures totaled $52.9 million, primarily reflecting continued investments in incremental capacity to support future growth. As improvements in profitability and productivity continue, we expect these trends to support stronger cash flow and a healthier balance sheet over time.”

Conference Call

The company will host a conference call and webcast this morning at 9:00 a.m. EST to discuss the first quarter of 2026 results and outlook. The conference call will be accessible via dial-in for those who wish to participate in Q&A as well as a listen-only webcast. The dial-in is accessible at 1-888-880-3330. To access the listen-only webcast, please register at https://app.webinar.net/x89XOEkP41z. On the next business day following the call, a replay of the call will be available on the company’s website at https://aaon.com/investors.

About AAON

Founded in 1988, AAON is a global leader in HVAC solutions for commercial, industrial and data center indoor environments. The company’s industry-leading approach to designing and manufacturing highly configurable and custom-made equipment to meet exact needs creates a premier ownership experience with greater efficiency, performance and long-term value. Its highly engineered equipment is sold under the AAON and BASX brands. AAON is headquartered in Tulsa, Oklahoma, where its world-class innovation center and testing lab allows AAON engineers to continuously push boundaries and advance the industry. For more information, please visit www.aaon.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “should”, “will”, and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligations to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Important factors that could cause results to differ materially from those in the forward-looking statements include (1) the timing and extent of changes in raw material and component prices, (2) the effects of fluctuations in the commercial/industrial new construction market, (3) the timing and extent of changes in interest rates, as well as other competitive factors during the year, and (4) general economic, market or business conditions. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in any forward-looking statements, see “Risk Factors” and “Forward Looking Statements” in AAON’s Annual Report on Form 10-K for the most recent fiscal year, as may be revised and updated by AAON’s Quarterly Reports on Form 10-Q, and AAON’s Current Reports on Form 8-K.

Contact Information

Joseph Mondillo
Director of Investor Relations & Corporate Strategy
Phone: (617) 877-6346
Email: joseph.mondillo@aaon.com

AAON, Inc. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

Three Months Ended March 31,

2026

2025

(in thousands, except per share data)

Net sales

$ 496,936

$ 322,054

Cost of sales

371,971

235,690

Gross profit

124,965

86,364

Selling, general and administrative expenses

67,906

51,293

Gain on disposal of assets

—

(40)

Income from operations

57,059

35,111

Interest expense

(5,055)

(2,802)

Other income, net

174

Income before taxes

52,081

32,483

Income tax provision

12,266

3,191

Net income

$ 39,815

$ 29,292

Earnings per share:

Basic EPS

$ 0.49

$ 0.36

Diluted EPS

$ 0.48

$ 0.35

Cash dividends declared per common share:

$ 0.10

Weighted average shares outstanding:

Basic

81,756,604

81,472,351

Diluted

83,179,954

83,351,536

AAON, Inc. and Subsidiaries

Segment Net Sales and Profit

(Unaudited)

Three Months Ended March 31,

2026

2025

(in thousands)

AAON Oklahoma

External sales

$ 243,967

$ 161,838

Inter-segment sales

44,509

3,839

Eliminations

(44,509)

(3,839)

Net sales

243,967

161,838

Cost of sales1

179,695

121,238

Gross profit

64,272

40,600

AAON Coil Products

External sales

$ 117,611

$ 94,023

Inter-segment sales

6,818

3,579

Eliminations

(6,818)

(3,579)

Net sales

117,611

94,023

Cost of sales1

89,309

64,165

Gross profit

28,302

29,858

BASX

External sales

$ 135,358

$ 66,193

Inter-segment sales

(2)

Eliminations

(43)

Net sales

135,358

66,193

Cost of sales1

102,967

50,287

Gross profit

32,391

15,906

Consolidated gross profit

$ 124,965

$ 86,364

1 Presented after intercompany eliminations.

The reconciliation between consolidated gross profit to consolidated income from operations is as follows:

Consolidated gross profit

$ 124,965

$ 86,364

Less: Selling, general and administrative expenses

67,906

51,293

Add: gain on disposal of assets

—

(40)

Consolidated income from operations

$ 57,059

$ 35,111

AAON, Inc. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

March 31,
2026

December 31,
2025

2026

2025

Assets

(in thousands, except share and per share data)

Current assets:

Cash and cash equivalents

$ 13

Restricted cash

1,087

1,226

Accounts receivable, net

290,161

314,387

Income tax receivable

19,691

27,445

Inventories, net

313,203

261,151

Contract assets, net

298,368

247,037

Prepaid expenses and other

21,177

17,921

Total current assets

943,700

869,180

Property, plant and equipment, net

654,857

631,262

Intangible assets, net and goodwill

171,913

165,799

Right of use assets

17,335

17,988

Other long-term assets

1,907

2,281

Total assets

$ 1,789,712

$ 1,686,510

Liabilities and Stockholders’ Equity

Current liabilities:

Short-term obligations of NMTC1

7,535

Accounts payable

160,139

110,437

Accrued liabilities

136,731

132,213

Contract liabilities

55,229

80,670

Total current liabilities

359,634

330,855

Debt, long-term

425,154

398,320

Deferred tax liabilities

34,899

30,313

Other long-term liabilities

27,038

23,299

New markets tax credit obligations1

8,778

8,738

Commitments and contingencies (Note 19)

Stockholders’ equity:

Preferred stock, $.001 par value, 5,000,000 shares authorized, no shares issued

—

Common stock, $.004 par value, 200,000,000 shares authorized, 81,851,483 and 81,691,075 issued and outstanding at March 31, 2026 and December 31, 2025, respectively

327

Additional paid-in capital

71,913

64,358

Retained earnings

861,969

830,300

Total stockholders’ equity

934,209

894,985

Total liabilities and stockholders’ equity

$ 1,789,712

$ 1,686,510

1 Held by variable interest entities

AAON, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended March 31,

2026

2025

Operating Activities

(in thousands)

Net income

$ 39,815

$ 29,292

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

Depreciation and amortization

20,903

18,943

Amortization of debt issuance costs

Amortization of right of use assets

(Recoveries of) Provision for losses on accounts receivable, net of adjustments

(120)

Provision for excess and obsolete inventories, net of write-offs

701

Share-based compensation

7,696

4,021

Other

—

(45)

Deferred income taxes

4,586

5,976

Changes in assets and liabilities:

Accounts receivable

24,346

(17,631)

Income tax receivable

7,754

(3,323)

Inventories

(52,753)

(11,489)

Contract assets

(51,331)

(53,235)

Prepaid expenses and other long-term assets

(1,487)

(2,703)

Accounts payable

50,375

21,625

Contract liabilities

(25,441)

1,508

Extended warranties

4,387

Accrued liabilities and other long-term liabilities

4,483

(2,412)

Net cash provided by (used in) operating activities

33,994

(9,214)

Investing Activities

Capital expenditures

(45,127)

(46,723)

Grant proceeds received

1,650

—

Proceeds from sale of property, plant and equipment

—

Acquisition of intangible assets

(7,808)

(3,717)

Principal payments from note receivable

—

Net cash used in investing activities

(51,285)

(50,388)

Financing Activities

Borrowings of debt

252,867

235,925

Payments of debt

(226,033)

(138,411)

Payment related to financing costs

(1,395)

—

Stock options exercised

3,062

4,356

Repurchase of stock – open market

—

(31,536)

Repurchases of stock – LTIP plans (Note 17)

(3,203)

(6,768)

Cash dividends paid to stockholders

(8,146)

(8,095)

Net cash provided by financing activities

17,152

55,471

Net decrease in cash, cash equivalents, and restricted cash

(139)

(4,131)

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

1,239

6,514

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

$ 1,100

$ 2,383

Use of Non-GAAP Financial Measures

To supplement the company’s consolidated financial statements presented in accordance with generally accepted accounting principles (“GAAP”), additional non-GAAP financial measures are provided and reconciled in the following tables. The company believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results. The company believes that this non-GAAP financial measure enhances the ability of investors to analyze the company’s business trends and operating performance as they are used by management to better understand operating performance. Since adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin are non-GAAP measures and are susceptible to varying calculations, adjusted net income, adjusted net income per diluted share, EBITDA, adjusted EBITDA, and adjusted EBITDA margin, as presented, may not be directly comparable with other similarly titled measures used by other companies.

Non-GAAP Adjusted Net Income

The company defines non-GAAP adjusted net income as net income adjusted for any infrequent events, such as litigation settlements, net of profit sharing and tax effect, in the periods presented.

The following table provides a reconciliation of net income (GAAP) to non-GAAP adjusted net income for the periods indicated:

Three Months Ended March 31,

2026

2025

(in thousands)

Net income, a GAAP measure

$ 39,815

$ 29,292

Add: Memphis incentive fee1

—

2,700

Profit sharing effect2

—

(230)

Tax effect

—

(627)

Non-GAAP adjusted net income

$ 39,815

$ 31,135

Non-GAAP adjusted earnings per diluted share

$ 0.48

$ 0.37

1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities.

2Profit sharing effect of the Memphis incentive fee in the respective period.

EBITDA

EBITDA (as defined below) is presented herein and reconciled from the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator of a company’s ability to internally fund operations. The company defines EBITDA as net income, plus (1) depreciation and amortization, (2) interest expense (income), net and (3) income tax expense. EBITDA is not a measure of net income or cash flows as determined by GAAP. EBITDA margin is defined as EBITDA as a percentage of net sales.

The company’s EBITDA measure provides additional information which may be used to better understand the company’s operations. EBITDA is one of several metrics that the company uses as a supplemental financial measurement in the evaluation of its business and should not be considered as an alternative to, or more meaningful than, net income, as an indicator of operating performance. Certain items excluded from EBITDA are significant components in understanding and assessing a company’s financial performance. EBITDA, as used by the company, may not be comparable to similarly titled measures reported by other companies. The company believes that EBITDA is a widely followed measure of operating performance and is one of many metrics used by the company’s management team and by other users of the company’s consolidated financial statements.

Adjusted EBITDA is calculated as EBITDA adjusted by items in non-GAAP adjusted net income, above, except for taxes, as taxes are already excluded from EBITDA.

The following table provides a reconciliation of net income (GAAP) to EBITDA (non-GAAP) and Adjusted EBITDA (non-GAAP) for the periods indicated:

Three Months Ended March 31,

2026

2025

(in thousands)

Net income, a GAAP measure

$ 39,815

$ 29,292

Depreciation and amortization

20,903

18,943

Interest expense, net

5,055

2,802

Income tax expense

12,266

3,191

EBITDA, a non-GAAP measure

$ 78,039

$ 54,228

Add: Memphis incentive fee1

—

2,700

Profit sharing effect2

—

(230)

Adjusted EBITDA, a non-GAAP measure

$ 78,039

$ 56,698

Adjusted EBITDA margin

15.7 %

17.6 %

1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities.

2Profit sharing effect of the Memphis incentive fee in the respective period.

Non-GAAP Adjusted Selling, General and Administrative Expenses

The following table provides a reconciliation of selling, general and administrative expenses (GAAP) to adjusted selling, general and administrative expenses (non-GAAP) for the periods indicated:

Three Months Ended March 31,

2026

2025

(in thousands)

Non-GAAP Adjusted Selling, General and Administrative Expenses

SG&A, a GAAP measure

$ 67,906

$ 51,293

Less: Memphis Incentive Fee1

—

2,700

Profit Sharing effect2

—

(230)

Non-GAAP adjusted SG&A expenses

$ 67,906

$ 48,823

As a percent of sales

13.7 %

15.2 %

1The incentive fee relates to fees payable to our real estate broker associated with the acquisition of our Memphis, Tenn. plant for a percentage of the incentives awarded to us by various entities.

2Profit sharing effect of the Memphis incentive fee in the respective period.

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SOURCE AAON

Technology

Tetrous® Wins “Most Exciting New Product” Award at Shoulder 360™

Published

2 hours ago

May 7, 2026

Following its ACE (Advancing Cutting-Edge) Award win in 2024, Tetrous is recognized once again, this time by Shoulder 360™ for its EnFix® product line.

LOS ANGELES, May 7, 2026 /PRNewswire/ — Tetrous, Inc., an emerging leader in orthopedic sports medicine innovation, today announced it has been awarded “Most Exciting New Product” at Shoulder 360, recognizing the company’s continued advancement in solutions for bone-to-tendon healing.

This latest honor builds on Tetrous’ earlier recognition at the AOSSM Annual Meeting, where the company received the prestigious ACE (Advancing Cutting-Edge) Award in 2024—a distinction given to breakthrough technologies with the potential to meaningfully improve patient outcomes in sports medicine. Shoulder 360™ is the pre-eminent forum meeting annually to educate the spectrum of health care providers caring for patients with shoulder disorders.

Tetrous’ product line, including EnFix RC®, EnFix TAC-O®, EnFix TAC-T®, and EnFix ACL™, is designed to address longstanding challenges in orthopedic soft tissue repair, particularly in procedures such as rotator cuff repair, where failure rates remain a significant concern. Restoring the bone-to-tendon interface, known as the enthesis, ultimately determines healing and long-term success.

Tetrous offers the only demineralized bone fiber (DBF) implant designed specifically for placement within bone at the bone-tendon interface, supplying the biological drivers for repair. When the mineral component is removed from allograft bone, the bone morphogenic proteins (i.e. growth factors) are exposed, allowing them to help stimulate new tissue formation. The peg design of EnFix allows surgeons to place the implant directly into the bone at the repair site, while the internal cannulation allows bone marrow cells to access the implant and initiate healing.

Significant Commercial Progress
Since receiving its prior “technology” award, Tetrous has demonstrated significant commercial and clinical progress:

Expanded to more than 100 surgeon users with three times year over year surgeon growthSurpassed 3,500 implanted devices, reflecting strong clinical adoptionExpanded clinical use of EnFix across multiple anatomical enthesesCompleted first cases with EnFix ACL for Anterior Cruciate Ligament ReconstructionScaled distribution internationally, with active markets in the United States, Australia, and New Zealand, and planned expansion into Taiwan

Raffy Mirzayan, MD, DOCS Health, Clinical Professor of Orthopaedic Surgery at USC Keck School of Medicine, Los Angeles, and Co-Founder of Shoulder360 said: “Shoulder360 was proud to award the ‘Most Exciting New Product/Service Award’ for 2026 to Tetrous. The winner of the award is voted on by surgeon attendees. Tetrous stood out for its efforts to highlight Enthesis healing with its exciting new EnFix product.”

“The rapid pace of adoption we’ve seen in the past year is incredibly encouraging,” said John Bojanowski, Director and Chief Commercial Officer. “Surpassing 3,500 implants and expanding internationally are strong indicators that surgeons recognize the value of what Tetrous is bringing to the OR.”

“Our recognition at Shoulder 360 reflects the growing confidence from surgeons who are recognizing that we have introduced a differentiated solution that can complete the healing triad of (a) fixation, (b) structure and, now with Tetrous, (c) biology – leading to better outcomes for patients,” said Bradley Patt, PhD, Co-founder, Director and CEO.

About Tetrous, Inc.
Founded in 2019, Tetrous, Inc. utilizes next generation advanced technologies for enthesis repair in sports medicine applications. The EnFix family of demineralized bone fiber implants includes EnFix RC®, EnFix TAC® and EnFix ACL™, designed to enhance the natural healing response by supporting biologic reformation at the bone-to-tendon junction. By focusing on clinically validated technologies that reduce failure rates, accelerate recovery, and restore function, Tetrous is helping surgeons achieve consistent, evidence-based results that translate into both short-term return to normal activities and long-term positive outcomes for patients.

Tetrous enjoys significant IP protection for its EnFix family of products with multiple issued patents and, additionally, has an exclusive license to the demineralized bone fiber technology used in its products for sports medicine applications from TheraCell, an ISTO Biologics Company.

Tetrous®, EnFix®, EnFix RC®, EnFix TAC® and EnFix ACL™ are trademarks of Tetrous, Inc.

For more information visit Tetrous, Inc., and follow us on LinkedIn.

Media Contact:
Ronda Taylor
Tetrous, Inc.
331-307-7499
rtaylor@tetrous.com

Product Information:
John Bojanowski
Tetrous, Inc.
331-307-7499
jbojanowski@tetrous.com

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SOURCE Tetrous