SkyWater Technology Expands Leadership in U.S. Semiconductor Manufacturing With Infineon IP License Agreement
This new IP enables customers to design and build high-reliability mixed-signal SoCs entirely within a secure U.S. supply chain – a strategic milestone for U.S. semiconductor independence that extends SkyWater's leadership in domestic innovation.
The licensed IP, originally developed by Cypress Semiconductor and validated in high-volume, automotive-grade applications, will be released through SkyWater's S130 platform. SkyWater is uniquely positioned to support both commercial and defense markets at scale.
'This is about reshaping the future of semiconductor innovation in the U.S.,' said Ross Miller, SVP of SkyWater's Commercial and A&D Business. 'Today, over 90% of global mixed-signal ASIC chip production happens offshore, despite these mature nodes being critical for automotive, industrial, and defense systems. We're changing that. By combining proven, silicon-validated IP with trusted U.S. manufacturing, we're empowering customers to design and manufacture reliable mixed-signal ASICs at scale within a secure domestic supply chain.'
The S130 platform builds on decades of success, offering a comprehensive suite of mixed-signal building blocks, including embedded Non-Volatile Memory (NVM) options and SRAM compilers. These capabilities have powered billions of devices across automotive, industrial, medical, and consumer sectors. Now, SkyWater is extending this proven foundation to new ASIC developers, system companies, and government customers seeking long-term support and scalable U.S. manufacturing solutions.
'The S130 platform has earned its reputation for reliability in demanding real-world environments,' said Percy Gilbert, SVP of Engineering at SkyWater. 'By making this IP accessible, we're enabling customers to reduce design risk, accelerate time to market, and lower development costs when building complex analog and mixed-signal ASICs – all while leveraging a mature, silicon-proven platform.'
SkyWater plans to integrate this IP portfolio into its Technology as a Service (TaaS℠) model, enabling customers to design sophisticated, high-reliability mixed-signal SoCs with components that have been validated in automotive and mission-critical real-world applications. The portfolio includes key components such as analog-to-digital converters (ADCs), digital-to-analog converters (DACs), power management, timing, and communications modules – validated in mission-critical applications.
Phased Release Based on Market Demand
SkyWater will prioritize the conversion of these IP blocks for general foundry use based on customer demand across various markets. It will provide full design enablement support including PDKs, documentation, and integration assistance for qualified engagements.
With this agreement, SkyWater continues to redefine what it means to be a trusted U.S. foundry partner, delivering advanced technology solutions that drive innovation and strengthen domestic semiconductor independence.
To express interest or initiate engagement, visit: www.skywatertechnology.com/contact-us or contact sales@skywatertechnology.com.
About SkyWater Technology
SkyWater (NASDAQ: SKYT) is a U.S.-based semiconductor manufacturer and a DMEA-accredited Category 1A Trusted Supplier. SkyWater's Technology as a Service model streamlines the path to production for customers with development services, high-volume production and heterogeneous integration solutions in its U.S. facilities. This pioneering model enables innovators to co-create the next wave of technology within diverse categories including mixed-signal CMOS, read-out ICs, embedded computing, rad-hard ICs, memory and logic devices, power management ICs, MEMS, superconducting ICs, photonics and advanced packaging. SkyWater serves the growing markets of aerospace & defense, automotive, biomedical, industrial and quantum computing. For more information, visit: www.skywatertechnology.com.
SkyWater Technology Forward-Looking Statements
This press release contains 'forward-looking' statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements that are based on SkyWater's current expectations or forecasts of future events, rather than past events and outcomes, and such statements are not guarantees of future performance. Forward-looking statements are subject to risks, uncertainties and assumptions, which may cause SkyWater's actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Key factors that could cause SkyWater's actual results to be different than expected or anticipated include, but are not limited to, ability to realize the expected benefits of the Fab 25 acquisition; ability to promptly and effectively integrate Fab 25's operations; negative effects relating to the consummation of the proposed Fab 25 transaction on the market price of SkyWater's common stock; significant transaction costs and/or unknown or inestimable liabilities; general economic and business conditions that may affect the combined company following the consummation of the proposed Fab 25 transaction; and other factors discussed in the 'Risk Factors' section of its annual report on Form 10-K and quarterly reports on Form 10-Q, and in other documents that SkyWater files with the SEC, which are available at http://www.sec.gov. SkyWater assumes no obligation to update any forward-looking statements, which speak only as of the date of this press release.
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Spin Master Reports Q2 2025 Financial Results
TORONTO, July 31, 2025 /CNW/ - Spin Master Corp. ("Spin Master" or the "Company") (TSX: TOY) ( a leading global children's entertainment company, today announced its financial results for the three and six months ended June 30, 2025. The Company's full Management's Discussion and Analysis ("MD&A") for the three and six months ended June 30, 2025 is available under the Company's profile on SEDAR+ ( and posted on the Company's web site at All financial information is presented in United States dollars ("$", "dollars" and "US$") and has been rounded to the nearest hundred thousand, except per share amounts and where otherwise indicated. "Our second quarter results underscore our commitment to building a diversified, resilient portfolio across Toys, Entertainment, and Digital Games," said Christina Miller, Spin Master's Chief Executive Officer. "While we experienced revenue pressure due to a shift in retailer ordering patterns driven by global tariffs, strong double-digit growth in our Digital Games segment helped to offset some of that impact in the quarter. Looking ahead, we are positioning Spin Master to navigate broader macroeconomic headwinds by remaining sharply focused on the consumer, accelerating innovation, scaling our global franchise brands, and unlocking new opportunities through our creative centres — laying the foundation for long-term, sustainable growth." "We are pleased with our top-line performance, particularly in light of the challenging macroeconomic environment," said Jonathan Roiter, Spin Master's Chief Financial Officer. "We maintained and gained market share across the majority of our Toy revenue base, while also continuing to grow Digital Games, driven by our refocused strategy anchoring our efforts in our Toca Boca World and Piknik digital platforms. Profitability was impacted by a lower revenue base and ongoing strategic investments. From a structural cost perspective, we achieved our targeted run-rate cost synergies related to Melissa & Doug, as well as made meaningful progress against our tariff mitigation plan, positioning us well to navigate through the temporary macroeconomic uncertainties." Consolidated Financial Highlights for Q2 2025 as compared to the same period in 2024 Q2 2025 Revenue was $400.7 million, a decrease of 2.7%, primarily driven by a decrease in Toy Revenue, partially offset by an increase in Digital Games Revenue. Q2 2025 Operating Loss was $52.4 million compared to $23.0 million. Q2 2025 Net Loss was $46.5 million or $(0.46) per share compared to $24.5 million or $(0.24) per share. Adjusted Net Loss 1 was $7.4 million or $(0.07) per share compared to Adjusted Net Income of $9.6 million or $0.09 per share (diluted). Q2 2025 Adjusted EBITDA 1 was $28.7 million, compared to $53.6 million, a decrease of $24.9 million. Adjusted EBITDA Margin 1 was 7.2% compared to 13.0%. Q2 2025 Total Net Cost Synergies 2 of $5.6 million related to the acquisition of Melissa & Doug were realized which represent annualized Run-rate Net Cost Synergies 2 of $26.5 million, achieving the target of $25 million to $30 million ahead of plan. Q2 2025 Cash provided by operating activities was $26.1 million compared to $25.4 million. Q2 2025 Free Cash Flow 1 was $(15.2) million compared to $(3.6) million. Repurchased and cancelled 636,632 subordinate voting shares for $10.5 million (C$14.8 million) in Q2 2025 through the Company's Normal Course Issuer Bid (the "NCIB") program. Subsequent to June 30, 2025, the Company repurchased and cancelled 110,188 subordinate voting shares for $2.0 million. Subsequent to June 30, 2025, the Company declared a quarterly dividend of C$0.12 per outstanding subordinate voting share and multiple voting share, payable on October 10, 2025. Consolidated Financial Results as compared to the same period in 2024 Six Months Ended Jun 30, (US$ millions, except per share information) Q2 2025 Q2 2024 $ Change 2025 2024 $ Change Consolidated Results Revenue 400.7 412.0 (11.3) 760.0 728.2 31.8 Operating Loss (52.4) (23.0) (29.4) (74.5) (84.8) 10.3 Operating Margin 2 (13.1) % (5.6) % (9.8) % (11.6) % Adjusted Operating (Loss) Income 1,3 (0.9) 23.6 (24.5) (6.8) 9.1 (15.9) Adjusted Operating Margin 1 (0.2) % 5.7 % (0.9) % 1.2 % Net Loss (46.5) (24.5) (22.0) (71.0) (79.3) 8.3 Adjusted Net (Loss) Income 1,3 (7.4) 9.6 (17.0) (19.4) (9.9) (9.5) Adjusted EBITDA 1,3 28.7 53.6 (24.9) 50.3 72.2 (21.9) Adjusted EBITDA Margin 1 7.2 % 13.0 % 6.6 % 9.9 % Earnings Per Share ("EPS") Basic EPS $(0.46) $(0.24) $(0.70) $(0.76) Diluted EPS $(0.46) $(0.24) $(0.70) $(0.76) Adjusted Basic EPS 1 $(0.07) $0.09 $(0.19) $(0.10) Adjusted Diluted EPS 1 $(0.07) $0.09 $(0.19) $(0.10) Weighted average number of shares (in millions) Basic 101.6 103.9 101.9 103.8 Diluted 104.5 106.0 104.5 106.0 Selected Cash Flow Data Cash provided by operating activities 26.1 25.4 0.7 50.9 49.7 1.2 Cash used in investing activities (43.1) (27.4) (15.7) (79.7) (1,007.8) 928.1 Cash (used in) provided by financing activities (4.2) (49.0) 44.8 (74.5) 408.2 (482.7) Free Cash Flow 1 (15.2) (3.6) (11.6) (26.0) (4.2) (21.8) 1 Non-GAAP financial measure or ratio. See "Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures". 2 Operating Margin is calculated as Operating Income (Loss) divided by Revenue. 3 Refer to the "Reconciliation of Non-GAAP Financial Measures" section for further details on the adjustments. Q2 2025 Operating Loss was $52.4 million, a change of $29.4 million from $23.0 million, primarily driven by the declines of $19.8 million in the Digital Games segment as result of impairment for digital game and app development assets, reflecting a strategic decision to streamline the Digital Games business and concentrate investments in core areas with long-term growth potential, $4.8 million in the Toys segment, and $2.1 million in the Entertainment segment. Q2 2025 Adjusted Operating Loss1 was $0.9 million, a change of $24.5 million from Adjusted Operating Income 1 of $23.6 million. The change was mainly driven by an increase in Adjusted Operating Loss 1 of $22.1 million in the Toys segment, a decline in Adjusted Operating Income 1 of $2.3 million in the Entertainment segment, partially offset by an increase in Adjusted Operating Income 1 in Digital Games segment of $1.8 million. Q2 2025 Adjusted EBITDA 1 was $28.7 million compared to $53.6 million. The decrease was primarily driven by the Toys segment, with lower Toy Revenue due to a decrease in Toy Gross Product Sales 1 and an increase in Sales Allowances. During the quarter, the decline in Toys Gross Product Sales 1 was primarily attributable to a temporary slowdown in U.S. retailer orders early in the second quarter due to broader market uncertainty resulting from ongoing changes to global tariff policies. In addition, Adjusted EBITDA 1 was impacted by higher investments in marketing to support key brand initiatives and retailer programs and higher selling expenses due to royalties arising from an increase in partner licensed brands sales. This decline was partially offset by the Digital Games segment, which delivered revenue growth driven by continued user engagement and new content releases. Additionally, Adjusted EBITDA 1 improved from lower distribution expenses due to operational efficiencies and administrative expenses from ongoing cost synergies related to the acquisition of Melissa & Doug. Adjusted EBITDA Margin 1 was 7.2% compared to 13.0%. The decline was primarily driven by the Toys segment due to a shift in product mix, higher Sales Allowances, marketing and selling expenses. The decline was partially offset by lower distribution expenses due to operational efficiencies and administrative expenses from ongoing cost synergies related to the acquisition of Melissa & Doug. Segmented Financial Results as compared to the same period in 2024 (US$ millions) Q2 2025 Q2 2024 Toys Entertain- ment Digital Games Corporate & Other 1 Total Toys Entertain- ment Digital Games Corporate & Other 1 Total Revenue 322.3 32.1 46.3 — 400.7 340.9 36.4 34.7 — 412.0 Operating (Loss) Income (39.7) 15.7 (15.5) (12.9) (52.4) (34.9) 17.8 4.3 (10.2) (23.0) Adjusted Operating (Loss) Income 2 (20.8) 17.7 7.7 (5.5) (0.9) 1.3 20.0 5.9 (3.6) 23.6 Adjusted EBITDA 2 (0.7) 24.3 10.6 (5.5) 28.7 20.9 28.4 7.9 (3.6) 53.6 1 Corporate & Other includes certain corporate costs, foreign exchange, transaction and integration costs, and investment income (loss), net. 2 Non-GAAP financial measure or ratio. See "Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures". Toys Segment Results The following table provides a summary of the Toys segment operating results, for the three months ended June 30, 2025 and 2024: 1 Non-GAAP financial measure or ratio. See "Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures". 2 The Company enters arrangements to provide Sales Allowances requested by customers relating to cooperative advertising, contractual and negotiated promotional discounts, volume rebates, markdowns, and costs incurred by customers to sell the Company's products. 3 Operating Margin is calculated as segment Operating Income divided by segment Revenue. Toy Revenue declined by $18.6 million to $322.3 million. Toy Gross Product Sales1 decreased by $13.7 million to $371.0 million, primarily attributable to a temporary slowdown in U.S. retailer orders due to broader market uncertainty early in the second quarter resulting from ongoing changes to global tariff policies. Sales Allowances increased by $3.2 million to $48.9 million. As a percentage of Toy Gross Product Sales 1, Sales Allowances increased to 13.2% from 11.9% driven by a change in customer mix and higher markdowns. Toys Operating Loss was $39.7 million compared to $34.9 million. The increase in Toys Operating Loss was driven by lower Gross Profit due to lower sales volume, higher selling and marketing expenses, partially offset by lower distribution and administrative expenses. Toys Operating Margin was (12.3)% compared to (10.2)%. Toys Adjusted EBITDA 1 was $(0.7) million compared to $20.9 million. Toys Adjusted EBITDA Margin 1 was (0.2)% compared to 6.1%. The decrease in Toys Adjusted EBITDA Margin 1 was driven by a change in product mix, higher Sales Allowances, higher selling expenses due to royalties arising from an increase in partner licensed brands sales and higher investments in marketing to support key brand initiatives and retailer programs, partially offset by lower administrative expenses from ongoing cost synergies related to the acquisition of Melissa & Doug and lower distribution expenses due to operational efficiencies. Entertainment Segment Results The following table provides a summary of Entertainment segment operating results, for the three months ended June 30, 2025 and 2024: 1 Non-GAAP financial measure or ratio. See "Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures". Entertainment Revenue declined by $4.3 million to $32.1 million, primarily driven by lower distribution and licensing & merchandising revenue. Entertainment Operating Income declined by $2.1 million to $15.7 million, primarily due to lower Entertainment Revenue. Entertainment Operating Margin was flat at 48.9%. Entertainment Adjusted Operating Income 1 declined by $2.3 million to $17.7 million. Entertainment Adjusted Operating Margin 1 was relatively flat at 55.1% compared to 54.9%. Digital Games Segment Results The following table provides a summary of Digital Games segment operating results, for the three months ended June 30, 2025 and 2024: 1 Non-GAAP financial measure or ratio. See "Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures". Digital Games Revenue increased by $11.6 million to $46.3 million driven by higher in-game purchases in Toca Boca World and continued growth in subscriptions across Piknik. Digital Games Operating Loss was $15.5 million, compared to Operating Income of $4.3 million, primarily due to $17.1 million of impairment for digital game and app development assets. This impairment reflects a strategic decision to streamline the Digital Games business and concentrate investments in core areas with long-term growth potential. Digital Games Operating Margin decreased from 12.4% to (33.5)%. Digital Games Adjusted Operating Income1 increased by $1.8 million to $7.7 million. Digital Games Adjusted Operating Margin 1 decreased from 17.0% to 16.6%, primarily due to higher marketing expenses related to paid user acquisition costs across the Digital Games portfolio to drive the increase in Digital Games Revenue. Liquidity The Company has an unsecured revolving credit facility (the "Facility") with a borrowing capacity of $510.0 million and contains certain financial covenants. On June 27, 2025, the Company entered into an agreement to amend its existing Facility, which now matures on June 27, 2030. The Company has a non-revolving credit facility (the "Acquisition Facility") for the acquisition of Melissa & Doug, with a borrowing capacity of $225.0 million and contains certain financial covenants. On June 27, 2025, the Company entered into an agreement to amend its existing Acquisition Facility, which now matures on June 27, 2027. During the six months ended June 30, 2025, the Company drew $25.0 million (2024 - $300.0 million) and repaid $30.0 million (2024 - $65.0 million) against the Facility. As at June 30, 2025, there was $160.0 million outstanding (December 31, 2024 - $165.0 million) under the Facility and $225.0 million outstanding (December 31, 2024 - $225.0 million) under the Acquisition Facility. For the six months ended June 30, 2025, the weighted average interest rates on the Facility and Acquisition Facility were 5.9% and 5.6%, respectively (2024 - 6.6% and 6.6%). As at June 30, 2025, the Company had available liquidity of $473.2 million, comprised of $128.0 million in cash and $345.3 million under the Company's credit facilities. Cash Flows for Q2 2025 as compared to the same period in 2024 Cash flows provided by operating activities were $26.1 million compared to $25.4 million driven by the change in non-cash working capital and lower income taxes paid, offset by lower Net Loss, adjusted for non-cash items. Change in non-cash working capital decreased by $45.9 million as compared to a decrease of $11.8 million, due to changes in trade payables and accrued liabilities, partially offset by changes in trade receivables and prepaid expenses. Cash flows used in financing activities were $4.2 million compared to $49.0 million, due to proceeds of $25.0 million from the Facility, no repayment (2024 - $15.0 million) towards the Facility and repurchase of shares under the Company's NCIB for $10.6 million (2024 - $20.5 million), partially offset by higher dividends payment of $8.0 million (2024 - $4.6 million). Free Cash Flow1 in 2025 was $(15.2) million compared to $(3.6) million, due to higher investment in computer software and Entertainment content development. Capitalization The Company's Board of Directors declared a dividend of C$0.12 per outstanding subordinate voting share and multiple voting share, payable on October 10, 2025 to shareholders of record at the close of business on September 26, 2025. The dividend is designated to be an eligible dividend for purposes of section 89(1) of the Income Tax Act (Canada). The weighted average basic and diluted shares outstanding as at June 30, 2025 were 101.9 million and 104.5 million, compared to 103.8 million and 106.0 million in the prior year, respectively. 1 Non-GAAP financial measure or ratio. See "Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures". 2 Supplementary financial measure. See "Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures". Forward-Looking Statements Certain statements, other than statements of historical fact, contained in this Press Release constitute "forward-looking information" within the meaning of certain securities laws, including the Securities Act (Ontario), and are based on expectations, estimates and projections as of the date on which the statements are made in this Press Release. The words "plans", "expects", "projected", "estimated", "forecasts", "anticipates", "indicative", "intend", "guidance", "outlook", "potential", "prospects", "seek", "strategy", "targets" or "believes", or variations of such words and phrases or statements that certain future conditions, actions, events or results "will", "may", "could", "would", "should", "might" or "can", or negative versions thereof, "be taken", "occur", "continue" or "be achieved", and other similar expressions, identify statements containing forward-looking information. Statements of forward-looking information in this Press Release include, without limitation, statements with respect to: future financial performance and growth expectations, as well as the drivers and trends in respect thereof; targeted run-rate net cost synergies; the Company's priorities, plans and strategies; content, digital game and product pipeline and launches, as well as their impacts; deployment of cash; dividend policy and future dividends; financial position, cash flows, liquidity and financial performance; the creation of long term shareholder value; and the timing, quantity and funding of any purchases of subordinate voting shares under the NCIB and the automatic share purchase plan, and the expected facilities through which any such purchases may be made. Forward-looking statements are necessarily based upon management's perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management as of the date on which the statements are made in this Press Release, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being incorrect. In addition to any factors and assumptions set forth above in this Press Release, the material factors and assumptions used to develop the forward-looking information include, but are not limited to: the Company will be able to successfully integrate the acquisition; the Company will be able to successfully expand its portfolio across new channels and formats, and internationally; achieve other expected benefits through this acquisition; management's estimates and expectations in relation to future economic and business conditions and other factors in relation to the Company's financial performance in addition to the proposed transaction and resulting impact on growth in various financial metrics; the realization of the expected strategic, financial and other benefits of the proposed transaction in the timeframe anticipated; the absence of significant undisclosed costs or liabilities associated with the transactions; Melissa & Doug's business will perform in line with the industry; there are no material changes to Melissa & Doug's core customer base; Net Cost Synergies towards the target of approximately $25 million to $30 million in Run-rate Net Cost Synergies by the end of 2026; implementation of certain information technology systems and other typical acquisition related cost savings; the Company's dividend payments being subject to the discretion of the Board of Directors and dependent on a variety of factors and conditions existing from time to time; seasonality; ability of factories to manufacture products, including labour size and allocation, tooling, raw material and component availability, ability to shift between product mix, and customer acceptance of delayed delivery dates; the steps taken will create long term shareholder value; the expanded use of advanced technology, robotics and innovation the Company applies to its products will have a level of success consistent with its past experiences; the Company will continue to successfully secure, maintain and renew broader licenses from third parties for premiere children's properties consistent with past practices, and the success of the licenses; the expansion of sales and marketing offices in new markets will increase the sales of products in that territory; the Company will be able to successfully identify and integrate strategic acquisition and minority investment opportunities; the Company will be able to maintain its distribution capabilities; the Company will be able to leverage its global platform to grow sales from acquired brands; the Company will be able to recognize and capitalize on opportunities earlier than its competitors; the Company will be able to continue to build and maintain strong, collaborative relationships; the Company will maintain its status as a preferred collaborator; the culture and business structure of the Company will support its growth; the current business strategies of the Company will continue to be desirable on an international platform; the Company will be able to expand its portfolio of owned branded IP and successfully license it to third parties; use of advanced technology and robotics in the Company's products will expand; the Company will be able to continue to develop and distribute entertainment content in the form of movies, TV shows and short form content; the Company will be able to continue to design, develop and launch mobile digital games to be distributed globally via app stores;access of entertainment content on mobile platforms will expand; fragmentation of the market will continue to create acquisition opportunities; the Company will be able to maintain its relationships with its employees, suppliers, retailers and license partners; the Company will continue to attract qualified personnel to support its development requirements; the Company's key personnel will continue to be involved in the Company products, mobile digital games and entertainment properties will be launched as scheduled; and the availability of cash for dividends and that the risk factors noted in this Press Release, collectively, do not have a material impact on the Company. By its nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. Known and unknown risk factors, many of which are beyond the control of the Company, could cause actual results to differ materially from the forward-looking information in this Press Release. Such risks and uncertainties include, without limitation, risks outlined in the "Global Tariffs Uncertainty and 2025 Outlook" section of the most recent interim MD&A the potential failure to realize anticipated benefits from the acquisition of Melissa & Doug; concentration of manufacturing and geopolitical risks; uncertainty and adverse changes in general economic conditions and consumer spending habits and the factors discussed in the Company's disclosure materials, including the Annual MD&A or subsequent, most recent interim MD&A and the Company's most recent Annual Information Form, filed with the securities regulatory authorities in Canada and available under the Company's profile on SEDAR+ ( These risk factors are not intended to represent a complete list of the factors that could affect the Company and investors are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law. Conference call Christina Miller, Chief Executive Officer and Jonathan Roiter, Executive Vice President & Chief Financial Officer, will host a conference call to discuss the financial results on Thursday, July 31, 2025 at 9:30 a.m. (ET). The call-in numbers for participants are (416) 945-7677 or 1 (888) 699-1199 . A live webcast of the call will be accessible via Spin Master's website at: Following the call, both an audio recording and transcript of the call will be archived on the same website page for 12 months. About Spin Master Spin Master Corp. (TSX: TOY) is a leading global children's entertainment company, creating exceptional play experiences across its three creative centres: Toys, Entertainment and Digital Games. With worldwide toy distribution, Spin Master is best known for award-winning brands including PAW Patrol®, Melissa & Doug®, Bakugan® and Rubik's® Cube, and is the global toy licensee for other iconic properties. Through its in-house entertainment studio, the company creates and produces captivating multiplatform content including powerhouse preschool franchise PAW Patrol, along with other original shows, short-form series and feature films. With an established presence in digital games anchored by Toca Boca® and Piknik™, Spin Master engages 70 million active users monthly in open-ended, creative and safe play. With 29 offices spanning nearly 20 countries, Spin Master employs more than 2,500 team members globally. Condensed consolidated interim statements of financial position Jun 30, Jun 30, Dec 31, (In US$ millions) 2025 2024 2024 Assets Current assets Cash and cash equivalents 128.0 154.6 233.5 Restricted cash — 3.1 — Trade receivables, net 355.9 315.7 499.4 Other receivables 61.9 57.8 54.9 Inventories, net 225.0 275.4 184.7 Income tax receivable 46.0 68.4 — Prepaid expenses and other assets 65.7 39.2 48.7 882.5 914.2 1,021.2 Non-current assets Intangible assets 858.5 825.0 837.4 Goodwill 368.6 378.7 368.1 Right-of-use assets 147.3 168.6 149.5 Property, plant and equipment 63.7 66.3 60.2 Deferred income tax assets 168.3 160.1 167.1 Other assets 28.5 36.4 29.9 1,634.9 1,635.1 1,612.2 Total assets 2,517.4 2,549.3 2,633.4 Liabilities Current liabilities Trade payables and accrued liabilities 375.7 364.4 429.5 Loans and borrowings 382.2 458.4 389.1 Provisions 21.6 23.9 24.7 Lease liabilities 22.4 32.2 22.3 Deferred revenue 35.2 13.7 22.0 837.1 892.6 887.6 Non-current liabilities Deferred income tax liabilities 209.7 225.1 209.9 Lease liabilities 126.9 127.6 123.0 Provisions 11.0 11.5 10.5 347.6 364.2 343.4 Total liabilities 1,184.7 1,256.8 1,231.0 Shareholders' equity Share capital 762.3 776.6 765.6 Retained earnings 544.7 505.6 640.1 Contributed surplus 34.1 34.0 45.5 Accumulated other comprehensive loss (8.4) (23.7) (48.8) Total shareholders' equity 1,332.7 1,292.5 1,402.4 Total liabilities and shareholders' equity 2,517.4 2,549.3 2,633.4 Condensed consolidated interim statements of loss and comprehensive loss Six Months Ended Jun 30, (In US$ millions, except earnings per share) Q2 2025 Q2 2024 2025 2024 Revenue 400.7 412.0 760.0 728.2 Cost of sales 190.7 212.4 355.1 372.1 Gross Profit 210.0 199.6 404.9 356.1 Expenses Selling, general and administrative 221.0 200.3 416.3 398.0 Depreciation and amortization 16.9 15.3 34.0 35.1 Other expense, net 19.1 2.2 19.2 3.4 Foreign exchange loss, net 5.4 4.8 9.9 4.4 Operating Loss (52.4) (23.0) (74.5) (84.8) Interest expense 9.9 12.2 20.2 25.0 Interest income (0.8) (1.1) (1.5) (2.4) Loss before income tax recovery (61.5) (34.1) (93.2) (107.4) Income tax recovery (15.0) (9.6) (22.2) (28.1) Net Loss (46.5) (24.5) (71.0) (79.3) Loss per share Basic (0.46) (0.24) (0.70) (0.76) Diluted (0.46) (0.24) (0.70) (0.76) Weighted average number of shares (in millions) Basic 101.6 103.9 101.9 103.8 Diluted 104.5 106.0 104.5 106.0 Six Months Ended Jun 30, (In US$ millions) Q2 2025 Q2 2024 2025 2024 Net Loss (46.5) (24.5) (71.0) (79.3) Items that may be subsequently reclassified to Net Loss Foreign currency translation gain (loss) 27.0 (1.9) 40.4 (8.9) Other comprehensive income (loss) 27.0 (1.9) 40.4 (8.9) Total comprehensive loss (19.5) (26.4) (30.6) (88.2) Condensed consolidated interim statements of cash flows Six Months Ended Jun 30, (Unaudited, in US$ millions) 2025 2024 Operating activities Net Loss (71.0) (79.3) Adjustments to reconcile net loss to cash provided by operating activities Income tax recovery (22.2) (28.1) Interest expense 14.4 18.9 Interest income (1.5) (2.4) Depreciation and amortization 60.7 66.6 Loss on disposal of non-current assets 0.9 0.3 Accretion expense 5.2 5.4 Amortization of facility fee costs 0.3 0.7 Loss on portfolio investments, net 0.2 0.3 Impairment of non-current assets 18.7 2.1 Unrealized foreign exchange loss (gain), net 0.5 (0.7) Share-based compensation expense 7.4 13.5 Fair value adjustment on inventory sold — 44.7 Net changes in non-cash working capital 70.7 81.9 Net change in non-cash provisions and other assets (0.3) (23.0) Income taxes paid (24.5) (41.8) Income taxes received 0.4 3.7 Interest paid (10.5) (15.8) Interest received 1.5 2.7 Cash provided by operating activities 50.9 49.7 Investing activities Investment in property, plant and equipment (21.7) (17.8) Investment in intangible assets (55.2) (37.1) Business acquisitions, net of cash acquired — (952.9) Portfolio investments (2.0) — Minority interest investments (0.8) — Cash used in investing activities (79.7) (1,007.8) Financing activities Proceeds from loans and borrowings 25.0 525.0 Repayment of loans and borrowings (30.0) (65.0) Payment of lease liabilities (20.4) (17.0) Dividends paid (17.1) (9.2) Repurchase of subordinate voting shares (32.0) (25.6) Cash (used in) provided by financing activities (74.5) 408.2 Effect of foreign currency exchange rate changes on cash (2.2) (1.2) Net decrease in cash during the period (105.5) (551.1) Cash, beginning of period 233.5 705.7 Cash, end of period 128.0 154.6 Non-GAAP Financial Measures and Ratios, Supplementary Financial Measures In addition to using financial measures prescribed under International Financial Reporting Standards ("IFRS"), references are made in this Press Release to the following terms, each of which is a non-GAAP financial measure: Toy Gross Product Sales Adjusted EBITDA Toys Adjusted EBITDA Entertainment Adjusted EBITDA Digital Games Adjusted EBITDA Adjusted Operating Income (Loss) Toys Adjusted Operating Income (Loss) Entertainment Adjusted Operating Income (Loss) Digital Games Adjusted Operating Income (Loss) Adjusted Net Income (Loss) Free Cash Flow Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Additionally, references are made in this Press Release to the following terms, each of which is a non-GAAP financial ratio: Adjusted EBITDA Margin Toys Adjusted EBITDA Margin Toys Adjusted Operating Margin Entertainment Adjusted Operating Margin Digital Games Adjusted Operating Margin Adjusted Operating Margin Adjusted Basic EPS Adjusted Diluted EPS Sales Allowances as a percentage of Toy Gross Product Sales Non-GAAP financial ratios are ratios or percentages that are calculated using a Non-GAAP financial measure. Non-GAAP financial ratios do not have any standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. References are made in this Press Release to the following terms, each of which is a supplementary financial measure: Net Cost Synergies Run-rate Net Cost Synergies Management believes the Non-GAAP financial measures, Non-GAAP financial ratios, and supplementary financial measures defined above are important supplemental measures of operating performance and highlight trends in the business. Management believes that these measures allow for assessment of the Company's operating performance and financial condition on a basis that is consistent and comparable between reporting periods. The Company believes that investors, lenders, securities analysts and other interested parties frequently use these Non-GAAP financial measures, Non-GAAP financial ratios, and Supplementary financial measures in the evaluation of issuers. Non-GAAP Financial Measures Toy Gross Product Sales represent Toy Revenue, excluding the impact of Sales Allowances. As Sales Allowances are generally not associated with individual products, the Company uses Toy Gross Product Sales to provide meaningful comparisons across product categories and geographical results to highlight trends in Spin Master's business. For a reconciliation of Toy Gross Product Sales to Revenue, the closest IFRS measure, refer to the revenue tables for the three months and six months ended June 30, 2025, as compared to the same period in 2024 in this Press Release. Adjusted EBITDA is calculated as Operating Income before interest income and interest expense and depreciation and amortization (EBITDA) excluding adjustments that do not necessarily reflect the Company's underlying financial performance. These adjustments include restructuring and other related costs, foreign exchange gains or losses, share based compensation expenses, acquisition related contingent consideration, impairment of intangible assets, impairment of goodwill, investment income (loss), net, acquisition related deferred incentive compensation, impairment of property, plant and equipment, legal settlement, transaction cost and gain on disposal of asset. Adjusted EBITDA is used by management as a measure of the Company's profitability. Refer to the "Reconciliation of Non-GAAP Financial Measures" section below for a reconciliation of this metric to Operating Income (Loss), the closest IFRS measure. Toys Adjusted EBITDA is calculated as Toy Operating Income (Loss) before interest income and interest expense and depreciation and amortization (EBITDA) excluding adjustments that do not necessarily reflect the Company's underlying financial performance. These adjustments include restructuring and other related costs, foreign exchange gains or losses, share based compensation expenses, acquisition related contingent consideration, impairment of intangible assets, impairment of goodwill, investment income (loss), acquisition related deferred incentive compensation, impairment of property, plant and equipment, legal settlement, transaction cost and gain on disposal of asset. Toys Adjusted EBITDA is used by management as a measure of the Company's profitability. Refer to the "Reconciliation of Non-GAAP Financial Measures" section below for a reconciliation of this metric to Toys Operating Income (Loss), the closest IFRS measure. Entertainment Adjusted EBITDA is calculated as Entertainment Operating Income (Loss) before interest income and interest expense and depreciation and amortization (EBITDA) excluding adjustments that do not necessarily reflect the Company's underlying financial performance. These adjustments include restructuring and other related costs, foreign exchange gains or losses, share based compensation expenses, acquisition related contingent consideration, impairment of intangible assets, impairment of goodwill, investment income (loss), acquisition related deferred incentive compensation, impairment of property, plant and equipment, legal settlement, transaction cost and gain on disposal of asset. Entertainment Adjusted EBITDA is used by management as a measure of the Company's profitability. Refer to the "Reconciliation of Non-GAAP Financial Measures" section below for a reconciliation of this metric to Digital Games Operating Income (Loss), the closest IFRS measure. Digital Games Adjusted EBITDA is calculated as Digital Games Operating Income (Loss) before interest income and interest expense and depreciation and amortization (EBITDA) excluding adjustments that do not necessarily reflect the Company's underlying financial performance. These adjustments include restructuring and other related costs, foreign exchange gains or losses, share based compensation expenses, acquisition related contingent consideration, impairment of intangible assets, impairment of goodwill, investment income (loss), acquisition related deferred incentive compensation, impairment of property, plant and equipment, legal settlement, transaction cost and gain on disposal of asset. Digital Games Adjusted EBITDA is used by management as a measure of the Company's profitability. Refer to the "Reconciliation of Non-GAAP Financial Measures" section below for a reconciliation of this metric to Digital Games Operating Income (Loss), the closest IFRS measure. Adjusted Operating Income (Loss) is calculated as Operating Income (Loss) excluding adjustments (as defined in Adjusted EBITDA). Adjusted Operating Income (Loss) is used by management as a measure of the Company's profitability. Refer to the "Reconciliation of Non-GAAP Financial Measures" section below for a reconciliation of this metric to Operating Income (Loss), the closest IFRS measure. Toys Adjusted Operating Income (Loss) is calculated as Toys Operating Income (Loss) excluding adjustments (as defined in Adjusted EBITDA). Toys Adjusted Operating Income (Loss) is used by management as a measure of the Company's profitability. Refer to the "Reconciliation of Non-GAAP Financial Measures" section below for a reconciliation of this metric to Toys Operating Income (Loss), the closest IFRS measure. Entertainment Adjusted Operating Income (Loss) is calculated as Entertainment Operating Income (Loss) excluding adjustments (as defined in Adjusted EBITDA). Entertainment Adjusted Operating Income (Loss) is used by management as a measure of the Company's profitability. Refer to the "Reconciliation of Non-GAAP Financial Measures" section below for a reconciliation of this metric to Entertainment Operating Income (Loss), the closest IFRS measure. Digital Games Adjusted Operating Income (Loss) is calculated as Digital Games Operating Income (Loss) excluding adjustments (as defined in Adjusted EBITDA). Digital Games Adjusted Operating Income (Loss) is used by management as a measure of the Company's profitability. Refer to the "Reconciliation of Non-GAAP Financial Measures" section below for a reconciliation of this metric to Digital Games Operating Income (Loss), the closest IFRS measure. Adjusted Net Income (Loss) is calculated as Net Income (Loss) excluding adjustments (as defined in Adjusted EBITDA), the corresponding impact these items have on income tax expense. Management uses Adjusted Net Income (Loss) to measure the underlying financial performance of the business on a consistent basis over time. Refer to the "Reconciliation of Non-GAAP Financial Measures" section below for a reconciliation of this metric to Operating Income (Loss), the closest IFRS measure. Free Cash Flow is calculated as cash flows provided by/used in operating activities reduced by cash flows used in investing activities and adding back cash used for business acquisitions, advance paid for business acquisitions, asset acquisitions, portfolio investments, minority interest investments, proceeds from sale of manufacturing operations and net of investment distribution income. Management uses the Free Cash Flow metric to analyze the cash flows being generated by the Company's business. Refer to the "Reconciliation of Non-GAAP Financial Measures" section for a reconciliation of this metric to Cash provided by operating activities, the closest IFRS measure. Non-GAAP Financial Ratios Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Revenue. Management uses Adjusted EBITDA Margin to evaluate the Company's performance compared to internal targets and to benchmark its performance against key competitors. Toys Adjusted EBITDA Margin is calculated as Toys Adjusted EBITDA divided by Toy Revenue. Management uses Toys Adjusted EBITDA Margin to evaluate the Company's performance compared to internal targets and to benchmark its performance against key competitors. Adjusted Operating Margin is calculated as Adjusted Operating Income (Loss) divided by Revenue. Management uses Adjusted Operating Margin to evaluate the Company's performance compared to internal targets and to benchmark its performance against key competitors. Toys Adjusted Operating Margin is calculated as Toys Adjusted Operating Income (Loss) divided by Toy Revenue. Management uses Toys Adjusted Operating Margin to evaluate the Company's performance compared to internal targets and to benchmark its performance against key competitors. Entertainment Adjusted Operating Margin is calculated as Entertainment Adjusted Operating Income (Loss) divided by Toy Revenue. Management uses Entertainment Adjusted Operating Margin to evaluate the Company's performance compared to internal targets and to benchmark its performance against key competitors. Digital Games Adjusted Operating Margin is calculated as Digital Games Adjusted Operating Income (Loss) divided by Digital Games Revenue. Management uses Digital Games Adjusted Operating Margin to evaluate the Company's performance compared to internal targets and to benchmark its performance against key competitors. Adjusted Basic EPS is calculated by dividing Adjusted Net Income (Loss) by the weighted average number of shares outstanding during the period. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income (Loss) by the weighted average number of shares outstanding, assuming the conversion of all dilutive securities were exercised during the period. Management uses Adjusted Basic EPS and Adjusted Diluted EPS to measure the underlying financial performance of the business on a consistent basis over time. Sales Allowances as a percentage of Toy Gross Product Sales is calculated by dividing Sales Allowances by Toy Gross Product Sales. Management uses Sales Allowances as a percentage of Toy Gross Product Sales to identify and compare the cost of doing business with individual retailers, different geographic markets and amongst various distribution channels. Supplementary Financial Measures Net Cost Synergies represent cost savings, net of costs to achieve, attributable to the integration of Melissa & Doug. Run-rate Net Cost Synergies represent the expected ongoing cost savings, net of costs to achieve, attributable to the integration of Melissa & Doug. The following table presents a reconciliation of Operating Loss to Adjusted Operating (Loss) Income, Adjusted EBITDA, Adjusted Net (Loss) Income, and cash used in operating activities and investing activities to Free Cash Flow for the three months ended June 30, 2025 and 2024: (in US$ millions) Q2 2025 Q2 2024 $ Change % Change Operating Loss (52.4) (23.0) (29.4) 127.8 % Adjustments: Impairment of intangible assets 1 18.5 1.8 16.7 n.m Restructuring and other related costs 2 12.1 0.5 11.6 n.m Transaction and integration costs 3 7.5 6.3 1.2 19.0 % Foreign exchange loss 4 5.4 4.8 0.6 12.5 % Share based compensation 5 4.8 6.2 (1.4) (22.6) % Amortization of intangible assets acquired 6 1.8 1.8 — — % Acquisition related deferred incentive compensation 7 0.7 1.1 (0.4) (36.4) % Acquisition related deferred consideration 8 0.5 (0.5) 1.0 (200.0) % Investment loss, net 9 0.2 0.4 (0.2) (50.0) % Fair value adjustment for inventories acquired 10 — 24.2 (24.2) (100.0) % Adjusted Operating (Loss) Income (0.9) 23.6 (24.5) (103.8) % Depreciation and amortization 11 29.6 30.0 (0.4) (1.3) % Adjusted EBITDA 28.7 53.6 (24.9) (46.5) % Income tax recovery 15.0 9.6 5.4 56.3 % Interest expense (9.1) (11.1) 2.0 (18.0) % Depreciation and amortization 11 (29.6) (30.0) 0.4 (1.3) % Tax effect of normalization adjustments 12 (12.4) (12.5) 0.1 (0.8) % Adjusted Net (Loss) Income (7.4) 9.6 (17.0) (177.1) % Cash provided by operating activities 26.1 25.4 0.7 2.8 % Cash used in investing activities (43.1) (27.4) (15.7) 57.3 % Add: Cash used in business acquisitions, asset acquisitions, portfolio investments, investment in associate and minority interest investments, net of investment distribution income 1.8 (1.6) 3.4 (212.5) % Free Cash Flow (15.2) (3.6) (11.6) 322.2 % ________________________________________ 1 Impairment of intangible assets primarily related to Digital game and app development projects. 2 Restructuring and other related costs related to the reduction in the Company's global workforce. 3 Transaction and integration costs incurred relating to acquisitions. 4 Includes foreign exchange losses (gains) generated by the translation and settlement of monetary assets/liabilities denominated in a currency other than the functional currency of the applicable entity and losses (gains) related to the Company's hedging programs. 5 Related to non-cash expenses associated with long-term incentive plan and excludes mark to market gain related to deferred share units ("DSUs"). 6 Relates to the amortization of intangible assets acquired with Melissa & Doug. 7 Deferred incentive compensation associated with acquisitions. 8 Expense (recovery) associated with contingent consideration for acquisitions. 9 Investment loss (income), net includes unrealized and realized (gain)/loss on portfolio investments and minority interest investments and share of (income)/loss from an investment in associate. 10 Relates to fair value adjustment to Melissa & Doug inventory recorded as part of the acquisition on January 2, 2024. 11 Depreciation and amortization for the calculation of Adjusted EBITDA excludes $1.8 million of amortization of intangible assets acquired with Melissa & Doug. 12 Tax effect of adjustments (Footnotes 1-10). Adjustments are tax effected at the effective tax rate of the given period. The following table presents a reconciliation of Operating Loss to Adjusted Operating (Loss) Income, Adjusted EBITDA, Adjusted Net (Loss) Income, and cash from operating activities to Free Cash Flow for the six months ended June 30, 2025 and 2024: ________________________________________ 1 Impairment of intangible assets primarily related to Digital game and app development projects. 2 Transaction and integration costs incurred relating to acquisitions. 3 Restructuring and other related costs related to the reduction in the Company's global workforce. 4 Includes foreign exchange (gains) losses generated by the translation and settlement of monetary assets/liabilities denominated in a currency other than the functional currency of the applicable entity and losses (gains) related to the Company's hedging programs. 5 Related to non-cash expenses associated with the Company's long-term incentive plan and the mark to market (gain)/loss related to DSUs. 6 Relates to the amortization of intangible assets acquired with Melissa & Doug. 7 Related to non-cash expenses associated with the Company's share option expense and long-term incentive plan. 8 Investment loss (income), net includes unrealized and realized (gain)/loss on portfolio investments and minority interest investments and share of (income)/loss from an investment in associate. 9 Impairment of property, plant and equipment related to tooling. 10 Expense associated with contingent consideration for acquisitions. 11 Relates to fair value adjustment to Melissa & Doug inventory recorded as part of the acquisition on January 2, 2024. 12 Depreciation and amortization for the calculation of Adjusted EBITDA excludes $3.6 million of amortization of intangible assets acquired with Melissa & Doug. 13 Tax effect of adjustments (Footnotes 1-11). Adjustments are tax effected at the effective tax rate of the given period. Segment Results The Company's results from operations by reportable segment for the three months ended June 30, 2025 and 2024 are as follows: (US$ millions) Q2 2025 Q2 2024 Toys Entertain- ment Digital Games Corporate & Other 1 Total Toys Entertain- ment Digital Games Corporate & Other 1 Total Revenue 322.3 32.1 46.3 — 400.7 340.9 36.4 34.7 — 412.0 Operating (Loss) Income (39.7) 15.7 (15.5) (12.9) (52.4) (34.9) 17.8 4.3 (10.2) (23.0) Adjusting items: Impairment of intangible assets 0.5 0.9 17.1 — 18.5 — 1.8 — — 1.8 Restructuring and other related costs 9.3 0.8 2.0 — 12.1 0.5 — — — 0.5 Transaction and integration costs 2.9 — 2.9 1.7 7.5 4.3 — — 2.0 6.3 Foreign exchange loss — — — 5.4 5.4 — — — 4.8 4.8 Share based compensation 3.7 0.3 0.7 0.1 4.8 5.5 0.4 0.9 (0.6) 6.2 Amortization of intangible assets acquired 1.8 — — — 1.8 3.5 — — — 3.5 Acquisition related deferred incentive compensation 0.2 — 0.5 — 0.7 0.4 — 0.7 — 1.1 Acquisition related deferred consideration 0.5 — — — 0.5 (0.5) — — — (0.5) Investment loss, net — — — 0.2 0.2 — — — 0.4 0.4 Fair value adjustment for inventories acquired — — — — — 44.8 — — — 44.8 Adjusted Operating (Loss) Income (20.8) 17.7 7.7 (5.5) (0.9) 1.3 20.0 5.9 (3.6) 23.6 Adjusted Operating Margin (6.5) % 55.1 % 16.6 % n.m. (0.2) % 0.4 % 54.9 % 17.0 % n.m. 5.7 % Depreciation and amortization 2 20.1 6.6 2.9 — 29.6 19.6 8.4 2.0 — 30.0 Adjusted EBITDA (0.7) 24.3 10.6 (5.5) 28.7 20.9 28.4 7.9 (3.6) 53.6 Adjusted EBITDA Margin (0.2) % 75.7 % 22.9 % n.m. 7.2 % 6.1 % 78.0 % 22.8 % n.m. 13.0 % 1 Corporate & Other includes certain corporate costs, foreign exchange, transaction and integration costs, and investment income (loss), net. 2 Depreciation and amortization for the calculation of Adjusted EBITDA excludes $1.8 million (Q2 2024 - $3.5 million) of amortization of intangible assets acquired with Melissa & Doug. SOURCE Spin Master Corp.
Globe and Mail
21 minutes ago
- Globe and Mail
‘The Upside Is Enormous': 2 Quantum Computing Stocks Rosenblatt Is Pounding the Table On
Most historians date the start of the Industrial Revolution to around 1770. Almost 150 years later, in 1913, Henry Ford introduced the assembly line to the factory floor, and some 75 years after that, the widespread use of PCs and networking brought us the internet and digital age. And now we're looking at the advent of quantum computing, which promises to bring dramatically expanded computational power. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Right now, we're on the cusp of the transition between traditional computing and quantum computing. Quantum computers make use of the principles of quantum mechanics and subatomic superpositioning to tackle far more complex problems than traditional digital machines, and to do so far more quickly. According to McKinsey, the addressable market for them is expected to reach as high as $30 billion or more within just 10 years. Add in quantum-based communications and sensing technologies, and the market for quantum tech may hit as high as $97 billion by 2035. One thing is certain: that kind of growth is sure to attract investors. Covering the quantum sector for Rosenblatt, analyst Kevin Garrigan noted: 'For investors, quantum computing represents a long-duration, high-growth opportunity, with near-term commercialization through hybrid quantum-classical solutions in optimization and simulation. While widespread fault-tolerant systems remain a decade away, the strategic upside from quantum's potential to disrupt industries such as pharmaceuticals, advanced materials, financial modeling, and cybersecurity is enormous.' Garrigan has turned that bullish outlook into action, pounding the table on two quantum computing stocks that investors should buy into. And he's not alone, the TipRanks database shows that Wall Street analysts are just as enthusiastic, assigning both names a Strong Buy consensus rating. IonQ (IONQ) We'll start with IonQ, a tech company founded 10 years ago and based in College Park, Maryland. This is a prime location for a cutting-edge tech firm; it is just a few miles from Washington, DC, and it is home to the University of Maryland, giving the company easy access to sources of government and academic support. IonQ is developing trapped ion quantum computing, a method that makes use of electromagnetic fields to trap and hold ions, electrically charged atomic particles, and to make use of their stable electric states to store qubit information, the basic data storage of quantum computing. In effect, IonQ is using the electromagnetic potential inherent in atoms to tap into the properties of the subatomic quantum particles from which they are built. It's an approach that the company describes as 'naturally quantum,' and it is proving highly amenable to storing the qubit data that quantum computers use. Following this path, IonQ has brought its trapped ion approach to fruition in the form of several commercially available quantum computers. The 25-qubit Aria is the company's flagship system, while Forte, IonQ's second system to hit the commercial market, brought an expanded capacity of 36 qubits. IonQ scored a $22 million sale of the Forte Enterprise system during the first quarter of this year, with Chattanooga's EPB as the customer. More recently, IonQ entered into a strategic collaboration with Australia's Emergence Quantum, giving the Maryland firm a foot in the Asia-Pacific arena. IonQ is not standing still, and is working on a new system, Tempo, to bring higher-capacity quantum computers to the commercial market. Tempo is planned and designed as a faster and more useful quantum computer system, with a capacity of at least 64 qubits. We won't see IonQ's 2Q25 results until August 6, but for now we can look back at the company's Q1 report to get a feel for where IonQ stands. In the first quarter of this year, IonQ reported $7.57 million in revenue, flat year-over-year and edging over the forecast by some $56,000. The company reported a quarterly net loss of 14 cents per share, which was 15 cents better than had been expected. At the end of the quarter, IonQ had cash and liquid assets totaling $697.1 million. For Garrigan, in his coverage of the stock, the starting point is IonQ's solid position at the leading edge of the computing world's future. The analyst writes, 'We believe IonQ provides an attractive way to gain exposure to the quantum computing market, a market that we see as the next era of computing. It is our view that the quantum computing market is setup to be a multiple winner market and not a winner takes all market. We have a high level of confidence that IonQ is well positioned to take its place among the winners, and unlike some early stage competitors, IonQ will be exiting 2025 with annualized revenues in excess of $100M, nearly doubling in 2026, and could well be on track for $1B in revenue over the next few years. We believe executing on the product roadmap, developing a quantum ecosystem to capture value in the nascent quantum networking, and increasing partnerships/system sales will drive stock price appreciation.' The analyst goes on to rate IONQ shares as a Buy, and his $70 price target points toward a one-year gain of 73%. (To watch Garrigan's track record, click here) The 7 recent analyst reviews of IonQ include 6 Buys to 1 Hold, for a Strong Buy consensus rating. The stock has a current trading price of $40.53 and its $47.50 average price target suggests that it will appreciate by 17% in the year ahead. (See IONQ stock forecast) D-Wave Quantum (QBTS) The next quantum stock we'll look at is D-Wave, one of the leading companies in the quantum computing sector. D-Wave, whose Palo Alto headquarters are in the heart of Silicon Valley, has been in business since 1999, developing quantum computing from both the hardware and software sides. More importantly, the company is also working on cloud services and app development tools – the very tools and services that will be needed to fully integrate quantum computing into the structure of today's digital world. D-Wave is one of the early entrants into the quantum computing world, and boasts that it was the first company to bring working quantum computers to the market. Currently, D-Wave has several quantum systems available, through the cloud or through 'on-premises' installations. The company claims that its quantum systems have achieved 99.9% availability, an important reliability milestone. Looking ahead, D-Wave has recently released its latest quantum computing system, the advanced Advantage2. This is an annealing quantum computer, designed to optimize problem-solving by locating the lowest energy state of a quantum system. This lower-power approach brings advantages in efficiency and cost of operations, while maintaining the high speed and capabilities inherent in quantum computing. Advantage2 is a sixth-generation quantum computer, and has proven that it can solve complex problems that are far beyond the abilities of even the best 'classical' supercomputers. The system is built to commercial-grade standards, and is intended to meet the needs of real-world customers, such as AI providers. From an investor's perspective, one of D-Wave's biggest advantages is the experience that the company has gained as the leader in bringing quantum computing into real-world use. The company has already dealt with such problems as system optimization, cloud compatibility and networking, and software development to match quantum's capabilities. All of this gives D-Wave a solid foundation, and the company has built itself into a $5.7 billion leader. D-Wave employs experts in physics, cloud infrastructure, and even processor chip manufacturing, and has protected its intellectual property with more than 250 US patents. On the financial side, D-Wave saw record-level revenue in 1Q25, with a top line of $15 million. This was up 507% year-over-year and beat expectations by $4.5 million. At the bottom line, D-Wave's earnings came to a loss of 2 cents per share, a figure that was 3 cents per share better than had been anticipated. D-Wave has deep pockets, and closed out Q1 with a cash balance of $304.3 million on hand. When we check in again with Rosenblatt's Garrigan, we find the analyst upbeat on D-Wave, seeing plenty of opportunities for the firm over the coming years. He writes, 'We believe D-Wave offers a differentiated way to gain exposure to the rapidly growing quantum computing market. It is our view that quantum annealing, a subsector of quantum computing, offers advantages over both classical computing and gate-based quantum systems for optimization workloads. We have a high level of confidence that D-Wave will capture significant market share in the quantum annealing market leading to D-Wave revenues growing at a +66% CAGR from 2025-2030. We believe continued demonstration of quantum supremacy, growing the commercial customer base, and executing on the dual-track product road map will drive stock price appreciation in the long-term.' Once again, Garrigan rates an upwardly mobile quantum computing stock as a Buy, backing that with a $30 price target implying a one-year upside potential of 70%. This is another quantum stock that has earned a Strong Buy consensus rating, this one based on 9 unanimously positive analyst reviews. The shares are priced at $17.67 and their $19.50 average target price suggests an upside of 10% on the one-year horizon. (See QBTS stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Globe and Mail
21 minutes ago
- Globe and Mail
Introducing Commerce, the New Parent Brand of BigCommerce, Feedonomics and Makeswift, Powering an AI-Driven Future
Commerce's open, intelligent ecosystem connects the tools and systems that drive growth and empower businesses to unlock data potential and deliver seamless, personalized experiences at scale Commerce unveils unified AI vision to enable every merchant to thrive in the agentic commerce era AUSTIN, Texas, July 31, 2025 (GLOBE NEWSWIRE) -- BigCommerce Holdings, Inc. (Nasdaq: BIGC), a leading open SaaS ecommerce platform for B2C and B2B businesses, today announced the launch of its new parent brand, Commerce, and that it has officially changed its corporate name to Inc. ('Commerce' or the 'Company'), unifying BigCommerce, Feedonomics and Makeswift to power the next era of agentic commerce. In connection with the name change and rebranding, effective on or about August 1, 2025, the Company's common stock will begin trading on the Nasdaq Global Market under the ticker symbol 'CMRC' and cease trading under 'BIGC.' This strategic move introduces a bold vision for the future where AI navigates choices for consumers and businesses adapt with intelligent, composable tools. In conjunction with the rebrand, Commerce also unveiled the company's vision and strategy for powering agentic commerce where AI acts on behalf of consumers to research, recommend and even transact. To support this shift, Commerce is focused on enabling merchants with the data infrastructure and intelligent storefronts needed to thrive in this next chapter of digital commerce. 'Launching the Commerce brand is about more than a new name and logo,' said Commerce CEO Travis Hess. 'It is a clear declaration to our customers, partners, investors and team that we are doubling down on innovation to give brands, retailers, manufacturers, distributors and wholesalers the flexibility, connectivity and care to help them move faster, scale smarter and grow on their terms. Agentic commerce requires a new playbook, and Commerce is here to deliver it with an open ecosystem built for speed, intelligence and flexibility.' Unifying Three Market-leading Solutions The individual BigCommerce, Feedonomics and Makeswift brands will continue to exist as three powerful solutions with a unified purpose: BigCommerce is the flexible ecommerce platform that grows with merchants. It is trusted by teams that value speed and scalability, empowering innovation without constraint. Feedonomics turns data into a competitive advantage, ensuring every product is AI-ready and optimized across hundreds of global channels. Built for both marketers and developers, Makeswift is the intuitive visual editor that lets whole teams collaborate to create cutting-edge, personalized digital experiences. Together, Commerce connects the tools and systems that drive growth, whether it is part of our family of brands or a trusted outside partner. Its open, intelligent ecosystem empowers businesses to unlock data potential and deliver seamless, personalized experiences at scale. 'Commerce is more than just another ecommerce company,' said Hess. 'We are a trusted partner, an innovation engine and a champion that stands behind what we promise, and one of those promises is to provide an AI-driven ecosystem that aligns innovation with outcomes.' Delivering AI to Drive Results The way consumers discover and purchase products online is undergoing a dramatic transformation. Traditional organic search is rapidly losing ground as the 'front door' of the internet. Instead, shoppers are turning to answer engines—AI-powered platforms like ChatGPT, Perplexity, Copilot and Google Cloud with Gemini—to find what they need and even buy it. In this new era, AI agents act on behalf of shoppers, searching, comparing, and even checking out across multiple channels, often without ever visiting a merchant's website. These AI-driven experiences are seamless, contextual and increasingly the default for how consumers interact with commerce online. For large retail brands and technology companies, this means that web traffic is already shifting as the old playbook of SEO and paid ads becomes less effective. The conversation is focused on regaining visibility and relevance in a fundamentally new digital landscape. Commerce offers a complete solution for the AI era. Feedonomics optimizes merchant data for every touchpoint and holds strategic partnerships with leading AI platforms. BigCommerce provides the operating system for merchants of record. Makeswift powers AI-optimized storefronts. Every merchant needs an end-to-end strategy with these pillars for success in AI-driven commerce. Over the last few weeks, Commerce brands BigCommerce and Feedonomics have expanded partnerships with AI leaders Perplexity and Google Cloud to help businesses capitalize on agentic commerce opportunities to meet consumer expectations and create a competitive advantage. 'At Commerce, we leverage AI where it delivers real, measurable results: powering personalization, automation and data orchestration across the entire customer journey from discovery to checkout,' said Vipul Shah, chief product officer at Commerce. 'By delivering relevant, context-optimized data to digital channels including answer engines, and creating agentic tools to help merchants optimize their operations, Commerce helps businesses adapt in real time and grow intelligently. We're not just following the AI wave; we're in the room with the product and engineering teams from the leading AI companies shaping the future of the internet so that we are positioned to help our customers win." Adventure brand Revelyst, the parent company of Bell, Bushnell, CamelBak and Giro; global consumer brand URBN, the parent company of Urban Outfitters, Anthropologie and many others; and Tapestry, the parent company of fashion brands such as Coach and Kate Spade New York; and Dell Technologies are already leveraging Commerce's product data integrations to improve visibility, protect brand consistency and boost performance across AI-driven search experiences. 'Since Travis stepped into the CEO role, he has assembled an experienced and visionary leadership team that came together with clarity and conviction to transform the company,' said Ellen Siminoff, executive chair of the board of directors at Commerce. 'The launch of Commerce is the culmination of bold thinking, careful planning and hard work during a period of rapid industry change. This transformation positions the company for a return to long-term, sustainable growth. We are proud of our progress thus far and look forward to continuous execution.' Conference Call Information Commerce will host its first quarterly earnings call under the Commerce name later this morning at 7:00 a.m. CT (8:00 a.m. ET) Thursday, July 31, 2025. The conference call can be accessed by dialing (833) 634-1254 from the United States and Canada or (412) 317-6012 internationally and requesting to join the 'Commerce conference call.' The live webcast of the conference call can be accessed from BigCommerce's investor relations website at Following the completion of the call through 11:59 p.m. ET on Thursday, August 7, 2025, a telephone replay will be available by dialing (877) 344-7529 from the United States, (855) 669-9658 from Canada or (412) 317-0088 internationally with conference ID 7863771. A webcast replay will also be available at for 12 months. About Commerce Commerce empowers businesses to innovate, grow, and thrive by providing an open, AI-driven commerce ecosystem. As the parent company of BigCommerce, Feedonomics, and Makeswift, Commerce connects the tools and systems that power growth, enabling businesses to unlock the full potential of their data, deliver seamless and personalized experiences across every channel, and adapt swiftly to an ever-changing market. Trusted by leading businesses like Coldwater Creek, Cole Haan, Harvey Nichols, King Arthur Baking Co., Melissa & Doug, Mizuno, Patagonia, Perry Ellis, Puma, SportsShoes, and Uplift Desk, Commerce delivers the storefront control, optimized data, and AI-ready tools businesses need to grow, serve diverse buyers, and operate with confidence in an increasingly intelligent, multi-surface world. For more information, visit or follow us on X and LinkedIn. BigCommerce,® the Commerce logo, and other brands are the trademarks or registered trademarks of BigCommerce Pty. Ltd. Third-party trademarks and service marks are the property of their respective owner. Forward-Looking Statements This press release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as 'anticipate,' 'believe,' 'estimate,' 'expect,' 'intend,' 'outlook,' 'may,' 'might,' 'plan,' 'project,' 'will,' 'would,' 'should,' 'could,' 'can,' 'predict,' 'potential,' 'strategy, 'target,' 'explore,' 'continue,' or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our ability to successfully execute our rebranding initiative, our increased focus on AI enablement, market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our plans and objectives for future operations, growth, initiatives or strategies. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others, our business would be harmed by any decline in new customers, renewals or upgrades, our limited operating history makes it difficult to evaluate our prospects and future results of operations, we operate in competitive markets, we may not be able to sustain our revenue growth rate in the future, our business would be harmed by any significant interruptions, delays or outages in services from our platform or certain social media platforms, and a cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks could negatively affect our business. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption 'Risk Factors' and elsewhere in our filings with the Securities and Exchange Commission (the 'SEC'), including our Annual Report on Form 10-K for the year ended December 31, 2024 and the future quarterly and current reports that we file with the SEC. Forward-looking statements speak only as of the date the statements are made and are based on information available to Commerce at the time those statements are made and/or management's good faith belief as of that time with respect to future events. Commerce assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.
