Euna Solutions Releases 2025 State of Public Budgeting Report
Despite growing momentum toward modernization, 39% of public finance teams still rely on spreadsheets to manage budgeting.
Although demands for transparency and digital access are rising, 81% of state and local government agencies still rely on PDFs for publishing digital budget books
Nearly half of public finance leaders cite budget cuts and shortfalls as their top challenge
More than half of public finance teams now use scenario planning to prepare for fiscal cliffs and economic shocks
Many agencies still struggle to connect budgets with long-term goals, risking underfunded priorities
Article content
ATLANTA & TORONTO — Amid ongoing fiscal uncertainty, a new national report from Euna Solutions® reveals how public sector finance teams are adapting to economic pressures, rising demands for transparency, and evolving citizen expectations. The 2025 State of Budgeting Report, based on survey data from 100 public sector finance professionals, offers a snapshot of how agencies are managing tighter budgets, leaner teams, and increasing complexity through the use of modern digital tools.
Article content
Article content
'Public sector budgeting has never been easy, but today's environment, from inflation to staffing shortages to rising expectations for transparency, makes it even more complex,' said Tom Amburgey, CEO of Euna Solutions. 'Yet what we're seeing isn't stagnation, it's adaptation. Finance leaders are embracing change, adopting smarter tools, and exploring emerging technologies like AI to solve persistent challenges. This transformation isn't just about efficiency, it's about enabling governments to be more responsive, transparent, and strategic in how they serve their communities.'
Article content
The findings come at a critical time: federal COVID-era support programs are set to sunset, inflation continues to impact operational costs, and many local governments are facing budget cuts or bracing for a fiscal cliff, a sudden drop in government funding that threatens essential services and stability. Yet, the report highlights a wave of resilience and innovation across the sector, driven largely by the adoption of cloud-based budgeting technology and scenario planning tools.
Article content
Key findings from the report include:
Article content
Budget Cuts Are the Top Concern: Nearly half (49%) of public finance leaders cite budget cuts and shortfalls as their greatest challenge. With shrinking revenues and rising costs, agencies must stretch their limited resources while maintaining existing services and launching new initiatives, often without additional staff or modernized systems.
Strategic Alignment Remains Elusive: Many agencies (37%) struggle to align their budgets with long-term goals, resulting in misallocated resources and underfunded priorities. In today's fast-paced environment, connecting financial planning to broader outcomes is crucial for driving measurable community impact and maintaining public accountability.
Technology Is No Longer Optional: The report underscores that digital tools are essential, not optional, for modern budgeting. From scenario planning to digital budget books, technology empowers teams to make smarter decisions, collaborate across departments, and respond quickly to economic uncertainty.
Transparency is a Growing Priority: The report highlights a persistent gap between budgeting goals and the tools in use. Despite growing expectations for transparency and efficiency, many finance teams still use spreadsheets (39%) to manage budgets, and a significant amount (81%) still rely on PDF files for sharing financial documents and budget books with the public. This gap presents an opportunity to leverage digital tools to support strategic goals, such as transparency, that make budget data easier to understand, explore, and act upon.
Resilience Through Scenario Planning: More than half (55%) of finance teams now use scenario planning to test assumptions and model different outcomes, despite only 15% using purpose-built software and 16% using ERPs to support them. This strategic process reflects a proactive approach to revenue volatility, preparing agencies to sustain operations through potential fiscal cliffs and funding reductions – the adoption of digital tools will enhance the speed, accuracy, and collaboration needed to make scenario planning even more effective.
Article content
'This State of Public Budgeting Report isn't just a snapshot of the present – it's a blueprint for the future,' said Amburgey. 'Public finance leaders are rewriting the playbook for how government budgeting works, making it more transparent, agile, and accountable. At Euna, we're proud to power that progress with technology that doesn't just keep up with change, it drives it. The future of public service is smarter, faster, and more connected, and it's already taking shape.'
Article content
To download the full 2025 State of Budgeting Report or learn more about Euna Budget, visit eunasolutions.com/resources/the-state-of-budgeting-report-2025 About Euna Solutions
Euna Solutions® is a leading provider of purpose-built, cloud-based software that helps public sector and government organizations streamline procurement, budgeting, payments, grants management, and special education administration. Designed to enhance efficiency, collaboration, and compliance, Euna Solutions supports more than 3,400 organizations across North America in building trust, enabling transparency, and driving community impact. Recognized on Government Technology's GovTech 100 list, Euna Solutions is committed to advancing public sector progress through innovative SaaS solutions. To learn more, visit www.eunasolutions.com.
Article content
Article content
Article content
Article content
Article content
Contacts
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
25 minutes ago
- National Post
CI Financial Reports Financial Results for the Second Quarter of 2025
Article content Diluted EPS of $0.97, adjusted diluted EPS 1 of $0.89 EBITDA of $296.6 million, adjusted EBITDA attributable to shareholders 1 of $256.3 million EBITDA per share of $2.05 and adjusted EBITDA attributable to shareholders 1 per share of $1.77 Operating cash flow of $98.5 million, free cash flow 1 of $174.7 million Operating cash flow per share of $0.68, free cash flow per share 1 of $1.21 Total assets of $550.9 billion, up $61.8 billion or 12.6% year over year Paid $28.7 million in dividends at $0.20 per share Article content All financial amounts in Canadian dollars as at June 30, 2025, unless stated otherwise. Article content TORONTO — CI Financial Corp. ('CI') (TSX: CIX) today released financial results for the quarter ended June 30, 2025. Article content Financial highlights Article content Second quarter net income attributable to shareholders was $141.8 million compared to a net loss of $8.5 million in the first quarter of 2025. Excluding non-operating items, adjusted net income attributable to shareholders 1 was $128.5 million in the second quarter, down 8.7% from $140.7 million in the previous quarter. Second quarter total net revenues were $898.8 million, up from $787.7 million in the first quarter of 2025. Excluding non-operating items, adjusted total net revenues 1 were $776.6 million, down 2.0% from $792.4 million. This resulted from a decline in asset management fees due to lower average assets under management, as well as a weaker U.S. dollar, which impacted the translation of U.S. Wealth Management revenues. Article content Second quarter total expenses decreased to $725.1 million from $764.3 million in the first quarter of 2025. Excluding non-operating items, adjusted total expenses 1 were $552.9 million, up 0.6% from $549.7 million in the previous quarter, primarily due to higher SG&A expenses and higher Advisor and Dealer fees resulting from higher fees in Canada wealth management. Article content Capital allocation Article content A previously announced debenture offering with a principal amount of $500 million maturing on April 3, 2028 closed on April 1, 2025. Article content Mubadala Capital transaction Article content As previously announced, CI has entered into a definitive agreement with an affiliate of Mubadala Capital to take CI private by way of a plan of arrangement under the Business Corporations Act (Ontario) (the 'Arrangement'). As announced on July 29, 2025, all regulatory approvals required to close the Arrangement have been obtained and CI expects the Arrangement to close on or about August 12, 2025, subject to the satisfaction of the remaining customary conditions to closing. Article content [millions of dollars, except share amounts] As of and for the quarters ended Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Total AUM and Client Assets: Asset Management AUM (2) 138,298 134,994 137,819 135,395 130,063 Canada Wealth Management assets 105,887 101,947 102,032 100,128 95,551 Canada custody (3) 38,327 35,624 34,697 31,886 29,350 U.S. Wealth Management assets (4) 268,338 273,573 254,871 250,646 234,062 Total assets 550,850 546,138 529,420 518,054 489,026 Asset Management Net Inflows: Retail (900 ) (334 ) 1,921 41 (332 ) Institutional 124 (210 ) 105 (24 ) (43 ) Australia 227 86 (274 ) 213 (24 ) Closed Business (143 ) (188 ) (212 ) (160 ) (216 ) Total Asset Management Segment (692 ) (645 ) 1,540 70 (616 ) U.S. Asset Management (5) 396 311 658 147 740 IFRS Results Net income attributable to shareholders 141.8 (8.5 ) (405.4 ) (27.6 ) 176.4 Diluted earnings per share 0.97 (0.06 ) (2.85 ) (0.19 ) 1.15 Pretax income 173.6 23.4 (368.9 ) 7.3 231.3 Pretax margin 19.3 % 3.0 % (54.4 )% 0.9 % 23.5 % Operating cash flow before the change in operating assets and liabilities 251.4 182.3 1.8 166.3 95.9 Adjusted Results (1) Adjusted net income 128.5 140.7 153.9 141.2 135.5 Adjusted diluted earnings per share 0.89 0.96 1.06 0.97 0.90 Adjusted EBITDA 304.3 324.9 340.3 316.8 293.4 Adjusted EBITDA margin 39.2 % 41.0 % 42.6 % 42.0 % 40.1 % Adjusted EBITDA attributable to shareholders 256.3 273.9 292.7 270.5 253.2 Free cash flow 174.7 200.8 179.9 192.3 151.7 Average shares outstanding 143,387,824 143,373,011 142,254,436 144,175,387 149,248,861 Adjusted average diluted shares outstanding 144,981,723 145,814,512 144,852,964 146,222,481 150,662,154 Ending shares outstanding 143,413,857 143,380,401 143,335,143 143,489,243 149,075,523 Total debt 4,099 4,245 4,047 3,741 3,642 Net debt 3,941 4,100 3,884 3,602 3,510 Net debt to adjusted EBITDA 3.8 3.7 3.3 3.3 3.5 Article content Free cash flow, free cash flow per share, net debt, adjusted net income, adjusted earnings per share, adjusted diluted earnings per share, adjusted EBITDA, adjusted net revenues and adjusted expenses are not standardized earnings measures prescribed by IFRS. For further information, see 'Non-IFRS Measures' note below. Includes $36.3 billion, $35.5 billion, $35.4 billion, $36.0 billion, and $34.1 billion of assets managed by CI and held by clients of advisors with CI Assante Wealth Management (CI Assante), CI Private Counsel (CIPC) and Aligned Capital Partners (Aligned Capital) as at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively. Includes $32.4 billion, $30.5 billion, $29.8 billion, $27.5 billion, and $25.6 billion of assets advised by CI and held by clients of advisors with CI Assante, CIPC, CI Direct Investing and Aligned Capital as at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively. Month-end USD/CAD exchange rates of 1.3617, 1.4391, 1.4375, 1.3524, and 1.3680 for June 2025, March 2025, December 2024, September 2024, and June 2024. Includes 100% of flows from CI's minority investments in Columbia Pacific Advisors, OCM Capital Partners (up to and including October 2024), The Cabana Group and GLASfunds Holdings. Article content About CI Financial Article content CI Financial Corp. is a diversified global asset and wealth management company operating primarily in Canada, the United States and Australia. Founded in 1965, CI has developed world-class portfolio management talent, extensive capabilities in all aspects of wealth planning, and a comprehensive product suite. CI operates in three segments: Article content Asset Management, which includes CI Global Asset Management, which operates in Canada, and GSFM, which operates in Australia. Canadian Wealth Management, operating as CI Wealth, which includes CI Assante Wealth Management, Aligned Capital Partners, CI Assante Private Client, CI Private Wealth, Northwood Family Office, CI Coriel Capital, CI Direct Investing, CI Direct Trading and CI Investment Services. U.S. Wealth Management, which includes Corient Private Wealth, an integrated wealth management firm providing comprehensive solutions to ultra-high-net-worth and high-net-worth clients across the United States. Article content CI is headquartered in Toronto and listed on the Toronto Stock Exchange (TSX: CIX). To learn more, visit CI's website or LinkedIn page. Article content Forward-Looking Information Article content This press release contains 'forward-looking information' within the meaning of applicable Canadian securities laws. Forward-looking information may relate to our future outlook and anticipated events or results and may include information regarding our financial position, business strategy, growth strategy, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities, including the timing for completion of the Arrangement, is forward-looking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as 'plans', 'targets', 'expects' or 'does not expect', 'is expected', 'an opportunity exists', 'budget', 'scheduled', 'estimates', 'outlook', 'forecasts', 'projection', 'prospects', 'strategy', 'intends', 'anticipates', 'does not anticipate', 'believes', or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might', 'will', 'will be taken', 'occur' or 'be achieved'. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. Article content Undue reliance should not be placed on forward-looking information. The forward-looking information in this press release is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Further, forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, those described in this press release. The belief that the investment fund industry and wealth management industry will remain stable and that interest rates will remain relatively stable are material factors made in preparing the forward-looking information and management's expectations contained in this press release and that may cause actual results to differ materially from the forward-looking information disclosed in this press release. In addition, factors that could cause actual results to differ materially from expectations include, among other things, the possibility that the Arrangement may not be completed, the timing of closing of the Arrangement, the negative impact that the failure to complete the Arrangement for any reason could have on the price of the shares or on the business of the Corporation, general economic and market conditions, including interest and foreign exchange rates, global financial markets, the impact of pandemics or epidemics, changes in government regulations or in tax laws, industry competition, technological developments and other factors described or discussed in CI's disclosure materials filed with applicable securities regulatory authorities from time to time. Additional information about the risks and uncertainties of the Corporation's business and material risk factors or assumptions on which information contained in forward‐looking information is based is provided in the Corporation's disclosure materials, including the Corporation's most recently filed annual information form and any subsequently filed interim management's discussion and analysis, which are available under our profile on SEDAR+ at Article content . Article content There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date of this news release and is subject to change after such date. CI disclaims any intention or obligation or undertaking to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Article content This communication is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. Article content CI Global Asset Management is a registered business name of CI Investments Inc., a wholly owned subsidiary of CI. Article content CONSOLIDATED STATEMENT OF INCOME For the three-month period ended June 30 2025 2024 [in thousands of Canadian dollars, except per share amounts] $ $ REVENUE Canada asset management fees 371,088 374,932 Trailer fees and deferred sales commissions (110,256 ) (113,936 ) Net asset management fees 260,832 260,996 Canada wealth management fees 185,564 168,733 U.S. wealth management fees 279,792 261,292 Other revenues 47,571 34,837 Foreign exchange gains (losses) 121,373 (22,599 ) Other gains 3,625 282,700 Total net revenues 898,757 985,959 EXPENSES Selling, general and administrative 377,212 432,226 Advisor and dealer fees 140,527 128,641 Interest and lease finance 61,304 55,166 Amortization and depreciation 19,449 18,403 Amortization of intangible assets from acquisitions 40,833 36,496 Transaction, integration, restructuring and legal 58,289 19,466 Change in fair value of contingent consideration (10,554 ) 12,594 Change in fair value of Preferred Share Liability 33,445 42,396 Other 4,632 9,321 Total expenses 725,137 754,709 Income (loss) before income taxes 173,620 231,250 Provision for (recovery of) income taxes Current 30,320 57,398 Deferred 1,493 (3,157 ) 31,813 54,241 Net income (loss) for the period 141,807 177,009 Net income (loss) attributable to non-controlling interests 9 594 Net income (loss) attributable to shareholders 141,798 176,415 Basic earnings (loss) per share attributable to shareholders 0.99 1.18 Diluted earnings (loss) per share attributable to shareholders 0.97 1.15 Other comprehensive income (loss), net of tax Exchange differences on translation of foreign operations (64,190 ) 16,089 Total other comprehensive income (loss), net of tax (64,190 ) 16,089 Comprehensive income (loss) for the period 77,617 193,098 Comprehensive income (loss) attributable to non-controlling interests 9 367 Comprehensive loss attributable to shareholders 77,608 192,731 Article content As at As at CONSOLIDATED BALANCE SHEET June 30, 2025 December 31, 2024 [in thousands of Canadian dollars] $ $ ASSETS Current Cash and cash equivalents 147,236 167,611 Client and trust funds on deposit 1,325,106 1,082,126 Investments 52,198 36,594 Accounts receivable and prepaid expenses 432,545 433,001 Income taxes receivable 65,521 49,587 Total current assets 2,022,606 1,768,919 Capital assets, net 167,876 170,168 Right-of-use assets 241,649 237,944 Intangibles and goodwill 8,109,451 8,086,266 Deferred income tax assets 99,447 107,106 Other assets 372,102 394,355 Total assets 11,013,131 10,764,758 LIABILITIES AND EQUITY Current Accounts payable and accrued liabilities 548,272 527,652 Current portion of provisions and other financial liabilities 158,812 209,258 Dividends payable — 57,334 Client and trust funds payable 1,344,404 1,076,242 Income taxes payable 3,646 17,004 Redeemable unit liabilities 1,385,057 1,464,371 Preferred Share Liability 2,015,853 2,044,888 Current portion of long-term debt 589,608 889,975 Current portion of lease liabilities 30,069 30,483 Total current liabilities 6,075,721 6,317,207 Long-term debt 3,509,886 3,157,257 Provisions and other financial liabilities 115,625 54,224 Other long-term payable 25,444 29,189 Deferred income tax liabilities 480,341 480,122 Lease liabilities 322,682 316,233 Total liabilities 10,529,699 10,354,232 Equity Share capital 1,375,952 1,373,814 Contributed surplus 14,105 14,124 Deficit (972,570 ) (1,105,649 ) Accumulated other comprehensive income 64,668 126,881 Total equity attributable to the shareholders of the Company 482,155 409,170 Non-controlling interests 1,277 1,356 Total equity 483,432 410,526 Total liabilities and equity 11,013,131 10,764,759 Article content CONSOLIDATED STATEMENT OF CASH FLOWS For the three-month period ended June 30 2025 2024 [in thousands of Canadian dollars] $ $ OPERATING ACTIVITIES (*) Net income (loss) for the year 141,807 177,009 Add (deduct) items not involving cash Other (gains) losses (3,625 ) (282,700 ) Change in fair value of contingent consideration (10,554 ) 12,594 Change in fair value of Preferred Share Liability 33,445 42,396 Contingent and deferred consideration recorded as compensation 229 651 Amortization of loan guarantees (249 ) (498 ) Recognition of non-cash vesting of redeemable unit liabilities (3,401 ) 82,420 Equity-based compensation 31,987 11,935 Equity accounted income (1,456 ) (1,088 ) Amortization of equity accounted investments 1,404 1,427 Amortization and depreciation 19,449 18,403 Amortization of intangible assets from acquisitions 40,833 36,496 Deferred income taxes 1,493 (3,157 ) Cash provided by operating activities before net change in operating assets and liabilities 251,362 95,888 Net change in operating assets and liabilities (152,884 ) 80,871 Cash provided by operating activities 98,478 176,759 INVESTING ACTIVITIES Cash paid to settle contingent liabilities (43,634 ) (116,909 ) Acquisitions, net of cash acquired (7,560 ) (106,638 ) Purchase of investments (190 ) (152 ) Proceeds on sale of investments 31 139 Additions to capital assets (5,919 ) (38,242 ) Decrease (increase) in other assets (6,025 ) (3,298 ) Additions to intangibles (2,114 ) (259 ) Cash used in investing activities (65,411 ) (265,359 ) FINANCING ACTIVITIES Repayment of long-term debt (76,238 ) (420,000 ) Issuance of long-term debt 79,940 1,290,666 Repurchase of long-term debt (4,846 ) (596,386 ) Repurchase of share capital — (85,542 ) Payment of lease liabilities (705 ) (1,998 ) Issuance of redeemable unit liabilities, net of redemptions (2,002 ) (65,933 ) Dividends paid to shareholders (28,676 ) (30,292 ) Cash provided by financing activities (32,527 ) 90,515 Net increase (decrease) in cash and cash equivalents during the year 540 1,915 Cash and cash equivalents, beginning of year 146,696 126,149 Cash and cash equivalents, end of year 147,236 128,064 SUPPLEMENTAL CASH FLOW INFORMATION (*) Included in operating activities are the following: Interest paid 91,440 78,196 Income taxes paid 45,321 44,444 Article content ASSETS UNDER MANAGEMENT AND NET FLOWS [billions of dollars] Quarters ended Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Beginning AUM 135.0 137.8 135.4 130.1 130.1 Gross inflows 6.5 7.2 9.3 6.3 8.1 Gross outflows (7.2 ) (7.8 ) (7.8 ) (6.2 ) (8.7 ) Net inflows/(outflows) (0.7 ) (0.6 ) 1.5 0.1 (0.6 ) Market move and FX 4.0 (2.2 ) 0.9 5.3 0.5 Ending AUM 138.3 135.0 137.8 135.4 130.1 Proprietary AUM 36.3 35.5 35.4 36.0 34.1 Non-proprietary AUM 102.0 99.5 102.4 99.4 95.9 Average assets under management 134.2 138.3 138.2 132.5 129.2 Annualized organic growth (2.1 )% (1.9 )% 4.5 % 0.2 % (1.9 )% Gross management fee/average AUM 1.14 % 1.14 % 1.15 % 1.17 % 1.18 % Net management fee/average AUM 0.78 % 0.78 % 0.79 % 0.79 % 0.80 % Net Inflows/(Outflows) Retail (0.9 ) (0.3 ) 1.9 — (0.3 ) Institutional 0.1 (0.2 ) 0.1 — — Closed business (0.1 ) (0.2 ) (0.2 ) (0.2 ) (0.2 ) Total Canada net inflows/(outflows) (0.9 ) (0.7 ) 1.8 (0.1 ) (0.6 ) Australia 0.2 0.1 (0.3 ) 0.2 — Total net inflows/(outflows) (0.7 ) (0.6 ) 1.5 0.1 (0.6 ) Article content RETAIL [billions of dollars] Quarters Ended Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Beginning AUM 112.9 115.3 108.0 115.1 108.1 Net Flows (0.9 ) (0.3 ) 1.9 0.0 (0.3 ) Market Move / FX 3.2 (2.1 ) 4.3 (6.8 ) 12.7 Acquisitions — — — — — Ending AUM 115.2 112.9 115.3 108.0 115.1 Average AUM 114.0 114.1 111.7 111.5 105.3 Article content INSTITUTIONAL [billions of dollars] Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Beginning AUM 9.1 9.3 9.6 9.2 9.1 Net Flows 0.1 (0.2 ) 0.1 — — Market Move / FX 0.8 0.0 (0.4 ) 0.4 0.1 Acquisitions — — — — — Ending AUM 10.0 9.1 9.3 9.6 9.2 Average AUM 9.6 9.2 9.5 9.4 8.9 Article content AUSTRALIA [billions of dollars] Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Beginning AUM 6.1 6.0 6.2 5.8 5.7 Net Flows 0.2 0.1 (0.3 ) 0.2 0.0 Market Move / FX (0.1 ) 0.0 0.1 0.2 0.1 Acquisitions — — — — — Ending AUM 6.2 6.1 6.0 6.2 5.8 Average AUM 6.2 6.1 6.1 6.0 5.4 Article content CLOSED BUSINESS [billions of dollars] Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Beginning AUM 6.9 7.2 7.3 7.1 7.3 Net Flows (0.1 ) (0.2 ) (0.2 ) (0.2 ) (0.2 ) Market Move / FX 0.2 (0.1 ) 0.1 0.4 — Acquisitions — — — — — Ending AUM 7.0 6.9 7.2 7.3 7.1 Average AUM 7.0 7.1 7.3 7.2 7.2 Article content AUM BY ASSET CLASS [billions of dollars] Quarters ended Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Balanced 53.3 52.8 53.6 53.5 51.8 Equity 45.5 43.1 45.3 44.6 42.4 Fixed income 14.5 14.2 14.0 12.8 12.0 Alternatives 8.7 8.3 8.6 7.8 7.6 Cash/Other 10.1 10.6 10.2 10.5 10.6 Total Canada asset management 132.1 128.9 131.8 129.1 124.3 Australia 6.2 6.1 6.0 6.2 5.8 Total asset management segment 138.3 135.0 137.8 135.4 130.1 Article content CANADA WEALTH MANAGEMENT CLIENT ASSETS [billions of dollars] Quarters ended Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Beginning client assets 101.9 102.0 100.1 95.6 93.7 Net flows and market move 3.9 (0.1 ) 1.9 4.6 1.8 Ending client assets 105.9 101.9 102.0 100.1 95.6 Average client assets 103.9 102.0 101.1 97.8 94.6 Wealth management fees/average client assets 0.89 % 0.89 % 0.88 % 0.88 % 0.90 % Canada custody 38.3 35.6 34.7 31.9 29.4 Proprietary custody 32.4 30.5 29.8 27.5 25.5 Non-proprietary custody 5.9 5.1 4.9 4.4 3.8 Article content U.S. WEALTH MANAGEMENT CLIENT ASSETS [billions of dollars] Quarters ended Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Beginning billable client assets 249.0 243.6 240.0 223.7 212.4 Acquisitions/divestitures — 18.5 (7.6 ) 8.2 5.6 Net flows and market move 4.2 (13.1 ) 11.2 8.1 5.8 Ending billable client assets 253.2 249.0 243.6 240.0 223.7 Non-billable client assets 15.1 24.6 11.3 10.7 10.3 Total client assets 268.3 273.6 254.9 250.6 234.1 Fees/beginning billable client assets 0.46 % 0.49 % 0.49 % 0.49 % 0.49 % Article content NON-IFRS MEASURES Article content In an effort to provide additional information regarding our results as determined by IFRS, we also disclose certain non-IFRS information which we believe provides useful and meaningful information. Our management reviews these non-IFRS financial measurements when evaluating our financial performance and results of operations; therefore, we believe it is useful to provide information with respect to these non-IFRS measurements so as to share this perspective of management. Non-IFRS measurements do not have any standardized meaning, do not replace nor are superior to IFRS financial measurements and may not be comparable to similar measures presented by other companies. The non-IFRS financial measurements include: Article content Adjusted net income and adjusted basic and diluted earnings per share Adjusted EBITDA, adjusted EBITDA margin and adjusted net revenue Free cash flow and free cash flow per share Net debt. These non-IFRS financial measurements exclude the following revenues and expenses which we believe allows investors a consistent way to analyze our financial performance, allows for better analysis of core operating income and business trends and permits comparisons of companies within the industry, normalizing for different financing methods and levels of taxation: Article content Costs related to our acquisitions, including: amortization of intangible assets change in fair value of contingent consideration related advisory and legal fees contingent consideration and consideration for strategic recruitment classified as compensation per IFRS Interest expense associated with redeemable preferred shares issued in connection with acquisitions Integration-related costs associated with our U.S. Wealth segment, including: organizational expenses for the establishment of Corient restructuring and severance-related charges rebranding efforts technology, operations and real estate related integration costs Accounting treatment of Corient and CIPW Canada redeemable units including: compensation expenses associated with Corient and CIPW Canada redeemable units non-cash charges related to guarantees for Corient and CIPW Canada related loans Gains or losses related to foreign currency fluctuations Legal provisions for a class action related to market timing and others Certain realized and unrealized gains or losses in assets and investments Costs related to issuing or retiring debt obligations and any related gains or losses Unusual trading or bad debt write-off charges Preparation costs for the planned initial public offering of our U.S. Wealth business or sale to a group of institutional investors Pass-through carried interest revenue and expense as a result of CI being deemed the principal to a revenue arrangement but where the economics are directly related to an entity in which CI has no interest. Changes in fair value for preferred shares issued to a group of institutional investors Costs related to the Mubadala privatization offer, including third-party costs and additional share-based compensation expenses directly attributable to the transaction. Article content Further explanations of these Non-IFRS measures can be found in the 'Non-IFRS Measures' section of Management's Discussion and Analysis dated August 5, 2025 available on SEDAR+ at or at Article content ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE [millions of dollars, except per share amounts] Quarters ended Jun. 30, 2025 Mar. 31, 2025 Jun. 30, 2024 Net Income 141.8 (8.6 ) 177.0 Amortization of intangible assets from acquisitions 40.8 50.6 36.5 Amortization of intangible assets for equity accounted investments 1.4 1.5 1.4 Change in fair value of contingent consideration (10.6 ) 5.9 12.6 Change in fair value of Preferred Share Liability 33.4 47.8 42.4 Interest expense — — 3.0 Acquisition and strategic recruitment consideration recorded as compensation 12.3 7.8 25.8 Non-controlling interest reclassification 0.6 0.7 1.1 Accounting for Corient and CIPW Canada redeemable units 13.1 61.2 98.6 Severance 4.7 2.2 7.2 Amortization of loan guarantees (0.2 ) (0.4 ) (0.5 ) FX losses (121.4 ) 3.2 22.6 Transaction, integration, restructuring and legal 58.5 20.0 20.1 Accelerated share-based compensation 19.6 18.7 — Other (gains)/losses — — 2.7 Gain on debt retirement (2.1 ) — (281.3 ) Total adjustments 50.1 219.3 (7.8 ) Tax effect of adjustments (25.2 ) (29.8 ) (2.7 ) Less: Non-controlling interest 38.2 40.1 31.0 Adjusted net income 128.5 140.7 135.5 Adjusted earnings per share 0.90 0.98 0.91 Adjusted diluted earnings per share 0.89 0.96 0.90 Average diluted shares outstanding under IFRS 146.2 143.4 153.8 Weighted average impact of Options — 0.1 — Weighted average impact of RSU awards — 2.4 — Weighted average impact of PSU awards (1.2 ) — — Shares convertible into common in connection with an acquisition — — (3.1 ) Adjusted average diluted shares outstanding 145.0 145.8 150.7 Article content EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN [millions of dollars, except per share amounts] Quarters ended Jun. 30, 2025 Mar. 31, 2025 Jun. 30, 2024 Pretax income 173.6 23.4 231.3 Amortization of intangible assets from acquisitions 40.8 50.6 36.5 Amortization of intangible assets for equity accounted investments 1.4 1.5 1.4 Depreciation and other amortization 19.4 20.0 18.4 Interest and lease finance expense 61.3 62.7 55.2 EBITDA 296.6 158.3 342.7 Change in fair value of contingent consideration (10.6 ) 5.9 12.6 Change in fair value of Preferred Share Liability 33.4 47.8 42.4 Acquisition and strategic recruitment consideration recorded as compensation 12.3 7.8 25.8 Non-controlling interest reclassification 0.6 0.7 1.1 Accounting for Corient and CIPW Canada redeemable units 13.1 61.2 98.6 Severance 4.7 2.2 7.2 Amortization of loan guarantees (0.2 ) (0.4 ) (0.5 ) FX losses (121.4 ) 3.2 22.6 Transaction, integration, restructuring and legal 58.3 19.5 19.5 Accelerated share-based compensation 19.6 18.7 — Other (gains)/losses — — 2.7 Gain on debt retirement (2.1 ) — (281.3 ) Total adjustments 7.7 166.6 (49.4 ) Adjusted EBITDA 304.3 324.9 293.4 Less: Non-controlling interest 48.0 51.0 40.2 Adjusted EBITDA attributable to shareholders 256.3 273.9 253.2 Reported net revenue 898.8 787.7 986.0 Less: FX losses 121.4 (3.2 ) (22.6 ) Less: Non-operating other gains/(losses) — — (2.7 ) Less: Amortization of equity accounted investments (1.4 ) (1.5 ) (1.4 ) Less: Gain on debt retirement 2.1 — 281.3 Adjusted net revenue 776.6 792.4 731.3 Adjusted EBITDA margin 39.2 % 41.0 % 40.1 % Article content FREE CASH FLOW [millions of dollars] Quarters ended Jun. 30, 2025 Mar. 31, 2025 Jun. 30, 2024 Cash provided by operating activities 98.5 148.4 176.8 Less: Net change in operating assets and liabilities (152.9 ) (33.9 ) 80.9 Operating cash flow before the change in operating assets and liabilities 251.4 182.3 95.9 FX (gains)/losses (121.4 ) 3.2 22.6 Transaction, integration, restructuring and legal 58.5 20.0 20.1 Total adjustments (62.9 ) 23.2 42.7 Tax effect (recovery) of adjustments (10.3 ) (4.8 ) 14.6 Less: Non-controlling interest 3.5 (0.2 ) 1.4 Free cash flow 174.7 200.8 151.7 Article content NET DEBT Quarters ended [millions of dollars] Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Current portion of long-term debt 589.6 1,083.3 890.0 346.7 525.0 Long-term debt 3,509.9 3,161.7 3,157.3 3,394.4 3,117.2 4,099.5 4,245.0 4,047.2 3,741.0 3,642.2 Less: Cash and short-term investments 147.2 146.7 167.6 144.1 128.1 Marketable securities 37.2 30.9 21.8 18.1 27.8 Add: Regulatory capital and non-controlling interests 26.4 32.1 26.2 23.6 24.0 Net Debt 3,941.4 4,099.5 3,884.0 3,602.4 3,510.4 Adjusted EBITDA attributable to shareholders 256.3 273.9 292.7 270.5 253.2 Adjusted EBITDA, annualized 1,025.3 1,095.4 1,170.7 1,081.9 1,012.7 Gross leverage (Gross debt/Annualized adjusted EBITDA) 4.0 3.9 3.5 3.5 3.6 Net leverage (Net debt/Annualized adjusted EBITDA) 3.8 3.7 3.3 3.3 3.5 Article content SUMMARY OF QUARTERLY RESULTS [millions of dollars, except per share amounts] IFRS Results Adjusted Results For the quarters ended For the quarters ended Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Revenues Asset management fees 371.1 383.4 395.4 383.1 374.9 371.1 383.4 395.4 383.1 374.9 Trailer fees and deferred sales commissions (110.3) (114.8) (118.8) (116.2) (113.9) (110.3) (114.8) (118.8) (116.2) (113.9) Net asset management fees 260.8 268.5 276.6 266.9 261.0 260.8 268.5 276.6 266.9 261.0 Canada wealth management fees 185.6 182.0 179.1 172.5 168.7 185.6 182.0 179.1 172.5 168.7 U.S. wealth management fees 279.8 293.1 293.8 274.9 261.3 279.8 293.1 293.8 274.9 261.3 Other revenues 47.6 48.2 48.8 38.1 34.8 49.0 49.7 49.9 39.5 36.3 FX gains/(losses) 121.4 (3.2) (145.2) 24.8 (22.6) — — — — — Other gains/(losses) 3.6 (0.8) 24.7 8.3 282.7 1.5 (0.8) 0.1 1.1 4.1 Total net revenues 898.8 787.7 677.8 785.4 986.0 776.6 792.4 799.5 754.9 731.3 Expenses Selling, general & administrative 377.2 414.2 485.2 397.6 432.2 327.8 324.6 317.3 300.5 301.1 Advisor and dealer fees 140.5 137.8 135.7 131.4 128.6 140.5 137.8 135.7 131.4 128.6 Other 4.6 5.8 6.9 7.1 9.3 4.0 5.1 6.3 6.2 8.3 Interest and lease finance expense 61.3 62.7 59.5 59.3 55.2 61.3 62.6 59.4 57.8 51.7 Depreciation and other amortization 19.4 20.0 16.6 19.0 18.4 19.2 19.5 15.4 17.4 18.2 Amortization of intangible assets from acquisitions 40.8 50.6 53.3 37.7 36.5 — — — — — Transaction, integration, restructuring and legal 58.3 19.5 41.1 35.0 19.5 — — — — — Change in fair value of contingent consideration (10.6) 5.9 5.3 1.9 12.6 — — — — — Change in fair value of Preferred Share Liability 33.4 47.8 243.1 89.1 42.4 — — — — — Total expenses 725.1 764.3 1,046.7 778.1 754.7 552.9 549.7 534.0 513.2 507.9 Pretax income (loss) 173.6 23.4 (368.9) 7.3 231.3 223.8 242.7 265.6 241.7 223.5 Income tax expense 31.8 32.1 31.8 34.2 54.2 57.1 61.9 67.7 61.6 57.0 Net income (loss) 141.8 (8.6) (400.8) (26.8) 177.0 166.7 180.8 197.8 180.1 166.5 Less: Non-controlling interest — (0.1) 4.6 0.8 0.6 38.2 40.1 44.0 38.9 31.0 Net income (loss) attributable to shareholders 141.8 (8.5) (405.4) (27.6) 176.4 128.5 140.7 153.9 141.2 135.5 Basic earnings per share 0.99 (0.06) (2.85) (0.19) 1.18 0.90 0.98 1.08 0.98 0.91 Diluted earnings per share 0.97 (0.06) (2.85) (0.19) 1.15 0.89 0.96 1.06 0.97 0.90 Article content RESULTS OF OPERATIONS – ASSET MANAGEMENT SEGMENT [millions of dollars, except per share amounts] IFRS Results Adjusted Results For the quarters ended For the quarters ended Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Revenues Asset management fees 376.3 388.6 400.7 388.1 379.9 376.3 388.6 400.7 388.1 379.9 Trailer fees and deferred sales commissions (118.4) (122.8) (127.1) (123.9) (121.4) (118.4) (122.8) (127.1) (123.9) (121.4) Net asset management fees 257.9 265.8 273.6 264.3 258.4 257.9 265.8 273.6 264.3 258.4 Other revenues 7.1 5.6 29.3 10.7 6.2 7.1 5.6 29.3 10.7 6.2 FX gains/(losses) 125.5 (3.0) (148.8) 25.7 (22.7) — — — — — Other gains/(losses) 3.8 (0.8) — 7.3 281.9 1.6 (0.8) 0.1 1.7 3.5 Total net revenues 394.2 267.6 154.1 308.0 523.8 266.6 270.6 303.1 276.7 268.1 Expenses Selling, general & administrative 129.0 123.1 157.4 105.9 111.9 106.5 106.1 113.5 104.1 106.1 Other 1.0 0.2 1.9 0.3 3.2 1.0 0.2 1.9 0.3 3.2 Interest and lease finance expense 0.6 0.6 0.6 0.6 0.5 0.6 0.6 0.6 0.6 0.5 Depreciation and other amortization 5.2 4.9 4.9 4.3 4.4 5.2 4.9 4.9 4.3 4.4 Amortization of intangible assets from acquisitions 0.6 0.6 0.6 0.6 0.6 — — — — — Transaction, integration, restructuring and legal 21.9 2.0 22.7 10.4 0.3 — — — — — Change in fair value of contingent consideration (0.3) 1.9 1.0 3.3 (0.3) — — — — — Total expenses 158.0 133.4 189.1 125.5 120.6 113.2 111.8 120.8 109.3 114.2 Pretax income 236.3 134.2 (35.0) 182.5 403.2 153.4 158.8 182.3 167.4 153.9 Non-IFRS adjustments Pretax income 236.3 134.2 (35.0) 182.5 403.2 153.4 158.8 182.3 167.4 153.9 Amortization of intangible assets from acquisitions 0.6 0.6 0.6 0.6 0.6 — — — — — Depreciation and other amortization 5.2 4.9 4.9 4.3 4.4 5.2 4.9 4.9 4.3 4.4 Interest and lease finance expense 0.6 0.6 0.6 0.6 0.5 0.6 0.6 0.6 0.6 0.5 EBITDA 242.6 140.3 (28.9) 188.1 408.7 159.1 164.3 187.7 172.4 158.8 Change in fair value of contingent consideration (0.3) 1.9 1.0 3.3 (0.3) — — — — — FX (gains)/losses (125.5) 3.0 148.8 (25.7) 22.7 — — — — — Severance 3.3 0.9 0.5 1.8 5.8 — — — — — Transaction, integration, restructuring and legal 21.9 2.0 22.7 10.4 0.3 — — — — — Accelerated share based compensation 19.2 16.1 43.5 — — — — — — — Other (gains)/losses — — 0.2 (0.2) 2.9 — — — — — Gain on debt retirement (2.1) — — (5.3) (281.3) — — — — — Total adjustments (83.5) 24.0 216.6 (15.7) (249.9) — — — — — Adjusted EBITDA 159.1 164.3 187.7 172.4 158.8 159.1 164.3 187.7 172.4 158.8 Less: Non-controlling interest (0.1) — 0.1 0.1 (0.1) (0.1) — 0.1 0.1 (0.1) Adjusted EBITDA attributable to shareholders 159.2 164.3 187.7 172.3 158.9 159.2 164.3 187.7 172.3 158.9 Article content RESULTS OF OPERATIONS – CANADA WEALTH MANAGEMENT SEGMENT [millions of dollars, except per share amounts] IFRS Results Adjusted Results For the quarters ended For the quarters ended Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Revenues Canada wealth management fees 227.2 224.7 224.8 215.9 211.4 227.2 224.7 224.8 215.9 211.4 Other revenues 31.7 31.5 29.7 32.6 33.3 31.7 31.5 29.8 32.7 33.4 FX gains/(losses) (2.6) (0.2) 2.1 (0.8) — — — — — — Total net revenues 256.3 256.0 256.7 247.8 244.7 259.0 256.2 254.6 248.6 244.7 Expenses Selling, general & administrative 59.7 62.8 59.3 58.4 57.1 59.2 58.8 57.1 57.0 56.8 Advisor and dealer fees 174.0 172.5 172.3 166.2 162.9 174.0 172.5 172.3 166.2 162.9 Other 3.9 3.6 3.8 5.4 6.1 3.3 2.9 4.4 4.5 5.0 Interest and lease finance expense 0.4 0.4 0.4 0.3 0.3 0.4 0.4 0.4 0.3 0.3 Depreciation and other amortization 4.4 4.8 5.0 5.0 4.8 4.4 4.8 5.0 5.0 4.8 Amortization of intangible assets from acquisitions 2.6 2.6 2.4 2.3 2.3 — — — — — Transaction, integration, restructuring and legal 0.1 — 1.8 — — — — — — — Change in fair value of contingent consideration 1.1 (0.4) 1.2 0.2 0.3 — — — — — Total expenses 246.2 246.4 246.2 237.9 233.9 241.2 239.5 239.2 233.1 229.9 Pretax income 10.1 9.6 10.5 9.9 10.8 17.7 16.7 15.5 15.5 14.8 Non-IFRS adjustments Pretax income 10.1 9.6 10.5 9.9 10.8 17.7 16.7 15.5 15.5 14.8 Amortization of intangible assets from acquisitions 2.6 2.6 2.4 2.3 2.3 — — — — — Amortization of intangible assets for equity accounted investments 0.1 0.1 0.1 0.1 0.1 — — — — — Depreciation and other amortization 4.4 4.8 5.0 5.0 4.8 4.4 4.8 5.0 5.0 4.8 Interest and lease finance expense 0.4 0.4 0.4 0.3 0.3 0.4 0.4 0.4 0.3 0.3 EBITDA 17.5 17.5 18.4 17.6 18.3 22.5 22.0 20.9 20.8 19.9 Change in fair value of contingent consideration 1.1 (0.4) 1.2 0.2 0.3 — — — — — Contingent consideration recorded as compensation (included in SG&A) (0.1) 0.1 — 0.1 0.1 — — — — — Accounting for CIPW Canada redeemable units (included in SG&A) (0.2) 0.8 0.6 1.6 (0.3) — — — — — FX (gains)/losses 2.6 0.2 (2.1) 0.8 — — — — — — Severance 0.5 0.5 0.5 (0.3) 0.5 — — — — — Transaction, integration, restructuring and legal 0.1 — 1.8 — — — — — — — Accelerated share-based compensation 0.4 2.6 1.1 — — — — — — — Non-controlling interest reclassification (included in Other) 0.6 0.7 (0.6) 0.9 1.1 — — — — — Total adjustments 4.9 4.5 2.5 3.2 1.7 — — — — — Adjusted EBITDA 22.5 22.0 20.9 20.8 19.9 22.5 22.0 20.9 20.8 19.9 Less: Non-controlling interest 1.3 1.3 1.3 1.8 1.9 1.3 1.3 1.3 1.8 1.9 Adjusted EBITDA attributable to shareholders 21.2 20.7 19.6 19.0 18.0 21.2 20.7 19.6 19.0 18.0 Article content RESULTS OF OPERATIONS – U.S. WEALTH MANAGEMENT SEGMENT [millions of dollars, except per share amounts] IFRS Results Adjusted Results For the quarters ended For the quarters ended Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 Sep. 30, 2024 Jun. 30, 2024 Revenues U.S. wealth management fees 279.8 293.1 293.8 274.9 261.3 279.8 293.1 293.8 274.9 261.3 Other revenues 18.5 22.8 0.5 5.1 5.7 19.8 24.2 1.6 6.5 7.0 FX gains/(losses) (1.6) — 1.5 (0.2) 0.1 — — — — — Other gains/(losses) (0.2) — 24.8 1.0 0.8 (0.2) — (0.1) (0.6) 0.6 Total net revenues 296.5 315.8 320.5 280.8 267.8 299.4 317.2 295.3 280.8 268.9 Expenses Selling, general & administrative 204.0 244.1 285.1 249.5 278.9 177.6 175.5 163.3 155.5 153.9 Other (0.9) 3.1 0.3 1.6 0.4 (0.9) 3.1 0.3 1.6 0.4 Interest and lease finance expense 4.1 4.5 3.8 3.9 5.1 4.2 4.4 3.6 3.5 4.7 Depreciation and other amortization 9.9 10.3 6.7 9.7 9.2 9.7 9.8 5.4 9.4 8.9 Amortization of intangible assets from acquisitions 37.6 47.4 50.3 34.7 33.6 — — — — — Transaction, integration, restructuring and legal 36.2 17.5 16.6 24.5 19.1 — — — — — Change in fair value of contingent consideration (11.4) 4.4 4.3 (1.5) 12.6 — — — — — Change in fair value of Preferred Share Liability 33.4 47.8 243.1 89.1 42.4 — — — — — Total expenses 313.0 379.0 610.2 411.4 401.3 190.5 192.8 172.7 170.0 167.9 Pretax income (16.5) (63.2) (289.7) (130.6) (133.5) 108.9 124.4 122.6 110.7 101.0 Non-IFRS adjustments Pretax income (16.5) (63.2) (289.7) (130.6) (133.5) 108.9 124.4 122.6 110.7 101.0 Amortization of intangible assets from acquisitions 37.6 47.4 50.3 34.7 33.6 — — — — — Amortization of intangible assets for equity accounted investments 1.3 1.4 1.1 1.3 1.4 — — — — — Depreciation and other amortization 9.9 10.3 6.7 9.7 9.2 9.7 9.8 5.4 9.4 8.9 Interest and lease finance expense 4.1 4.5 3.8 3.9 5.1 4.2 4.4 3.6 3.5 4.7 EBITDA 36.5 0.4 (227.8) (81.0) (84.2) 122.7 138.6 131.7 123.7 114.6 Change in fair value of contingent consideration (11.4) 4.4 4.3 (1.5) 12.6 — — — — — Change in fair value of Preferred Share Liability 33.4 47.8 243.1 89.1 42.4 — — — — — Acquisition and strategic recruitment consideration recorded as compensation (included in SG&A) 12.4 7.7 23.7 11.2 25.7 — — — — — Accounting for redeemable units (included in SG&A) 13.3 60.4 96.6 80.8 99.0 — — — — — FX (gains)/losses 1.6 — (1.5) 0.2 (0.1) — — — — — Severance 0.9 0.8 0.9 2.1 0.9 — — — — — Amortization of loan guarantees (0.2) (0.4) (0.6) (0.2) (0.5) — — — — — Transaction, integration, restructuring and legal 36.2 17.5 16.6 24.5 19.1 — — — — — Accelerated share-based compensation — — 1.3 — — — — — — — Other (gains)/losses — — (24.8) (1.6) (0.2) — — — — — Total adjustments 86.2 138.2 359.5 204.6 198.9 — — — — — Adjusted EBITDA 122.7 138.6 131.7 123.7 114.6 122.7 138.6 131.7 123.7 114.6 Less: Non-controlling interest 46.8 49.7 46.3 44.5 38.3 46.8 49.7 46.3 44.5 38.3 Article content Article content Article content Article content Article content Contacts Article content Investor Relations Article content Article content Jason Weyeneth, CFA Article content Article content Vice-President, Investor Relations & Strategy Article content Article content 416-681-8779 Article content Article content jweyeneth@ Article content Media Relations Article content Article content Canada Article content Article content Murray Oxby Article content Article content Vice-President, Corporate Communications Article content Article content 416-681-3254 Article content Article content moxby@ Article content
National Post
25 minutes ago
- National Post
Satellos to Present at Canaccord Genuity's 45th Annual Growth Conference
Article content TORONTO — Satellos Bioscience Inc. (TSX: MSCL, OTCQB: MSCLF) ('Satellos' or the 'Company'), a clinical-stage biotechnology company developing life-improving medicines to treat degenerative muscle diseases, will present at the Canaccord Genuity's 45th Annual Growth Conference, taking place Aug. 13–14, 2025, at the InterContinental Boston. Article content Satellos management will present on Wed., Aug. 13, from 12:30 to 12:55 p.m. ET in Abigail Adams C and will participate in one-on-one meetings during the conference. Article content Article content Canaccord Genuity's 45th Annual Growth Conference Article content Format: Presentation and Article content webcast Article content Article content Date: Wed., Aug. 13 Article content Article content Time: 12:30 p.m. ET Article content Article content Location: InterContinental Boston Article content The presentation will be available via live webcast on the Events and Presentations page in the Investors section of the Company's website, and a replay will be available following the presentation. Article content About Satellos Bioscience Inc. Article content Satellos is a clinical-stage drug development company focused on restoring natural muscle repair and regeneration in degenerative muscle diseases. Through its research, Satellos has developed SAT-3247, a first-of-its-kind, orally administered small molecule drug designed to address deficits in muscle repair and regeneration. SAT-3247 targets AAK1, a key protein that Satellos has identified as capable of replacing the signal normally provided by dystrophin in muscle stem cells to effect repair and regeneration. By restoring this missing signal in DMD, SAT-3247 enables muscle stem cells to divide properly and more efficiently, promoting natural muscle repair and regeneration. SAT-3247 is currently in clinical development as a potential disease-modifying treatment, starting with DMD. Satellos also is leveraging its proprietary discovery platform MyoReGenX™ to identify additional muscle diseases or injury conditions where restoring muscle repair and regeneration may have therapeutic benefit and represent future clinical development opportunities. For more information, visit Article content Article content Article content Article content Article content Contacts Article content Investors: Article content Liz Williams, CFO, Article content ir@ Article content Article content Media: Article content Article content
National Post
25 minutes ago
- National Post
Novanta Announces Financial Results for the Second Quarter 2025
Article content Article content Article content BOSTON — Novanta Inc. (Nasdaq: NOVT) ('Novanta' or the 'Company'), a trusted technology partner to medical and advanced technology equipment manufacturers, today reported financial results for the second quarter 2025. Article content Financial Highlights Three Months Ended (In millions, except per share amounts) June 27, June 28, 2025 2024 GAAP Revenue $ 241.0 $ 235.9 Operating Income $ 14.9 $ 25.7 Net Income $ 4.5 $ 13.8 Diluted EPS $ 0.12 $ 0.38 Non-GAAP* Adjusted Operating Income $ 40.7 $ 41.3 Adjusted Diluted EPS $ 0.76 $ 0.73 Adjusted EBITDA $ 52.2 $ 51.1 *Reconciliations of GAAP to non-GAAP financial measures, as well as definitions for the non-GAAP financial measures included in this press release and the reasons for their use, are presented below. Article content Second Quarter Article content 'Novanta delivered solid second quarter financial results, meeting or exceeding expectations in revenue, margins, and profitability, while rapidly adapting to the ongoing challenging macroeconomic environment,' said Matthijs Glastra, Chair and Chief Executive Officer of Novanta. 'Notably, we achieved 10% growth in bookings, with sequential improvement in the industrial business, and an overall book-to-bill ratio of 1.02 reflecting a strengthening outlook. We are very encouraged by mid-teens revenue growth in our Advanced Surgery and Robotics & Automation businesses, underscoring our strategic focus on high-growth markets and the diversity of our portfolio.' Article content 'Our Novanta team continues to execute effectively using the Novanta Growth System. As a result, we are seeing strong traction from our new product introductions and remain firmly on track to achieving our target of $50 million in new product sales this year. In addition, we secured several significant design wins with global leaders in the medical device and warehouse robotics sectors—key strategic areas that we expect will serve as long-term growth engines for Novanta.' Article content During the second quarter of 2025, Novanta generated GAAP revenue of $241.0 million, an increase of 2.2% or $5.2 million, versus the second quarter of 2024. The Company's acquisition activities resulted in a net increase in revenue of $5.3 million, or 2.3%, compared to the second quarter of 2024. Year-over-year changes in foreign currency exchange rates favorably impacted revenue by 2.0% or $4.8 million, during the second quarter of 2025. Organic Revenue Growth, which excludes the net impact of acquisitions and changes in foreign currency exchange rates, was (2.1)% for the second quarter of 2025 (see 'Organic Revenue Growth' in the non-GAAP reconciliations below). Article content In the second quarter of 2025, GAAP operating income was $14.9 million, compared to $25.7 million in the second quarter of 2024. GAAP net income was $4.5 million in the second quarter of 2025, compared to $13.8 million in the second quarter of 2024. GAAP diluted earnings per share ('EPS') was $0.12 in the second quarter of 2025, compared to $0.38 in the second quarter of 2024. Diluted weighted average shares outstanding was 36.1 million in the second quarter of 2025. Article content Adjusted Diluted EPS was $0.76 in the second quarter of 2025, compared to $0.73 in the second quarter of 2024. Adjusted EBITDA was $52.2 million in the second quarter of 2025, compared to $51.1 million in the second quarter of 2024. Article content Operating cash flow for the second quarter of 2025 was $15.1 million, compared to $41.1 million for the second quarter of 2024. The year-over-year decrease in operating cash flow was primarily driven by the timing of tax payments, and an increase in inventory purchases related to mitigating risks from global trade dynamics as well as the Company's recent acquisition activities. Article content Financial Guidance Article content 'In the coming quarters, we expect to drive sequential revenue and profit growth driven by our innovation pipeline, robust customer demand in secular growth markets, and operational discipline,' Matthijs Glastra continued. Article content For the full year 2025, the Company expects GAAP revenue of approximately $970 million to $985 million. The Company expects Adjusted EBITDA to be in the range of $225 million to $230 million and Adjusted Diluted EPS to be in the range of $3.22 to $3.36. The Company's guidance assumes no significant changes in foreign exchange rates. Article content For the third quarter of 2025, the Company expects GAAP revenue of approximately $244 million to $247 million. The Company expects Adjusted EBITDA to be in the range of $57 million to $60 million and Adjusted Diluted EPS to be in the range of $0.78 to $0.85. The Company's guidance assumes no significant changes in foreign exchange rates. Article content Novanta provides earnings guidance on a non-GAAP basis and does not provide earnings guidance on a GAAP basis, with the exception of GAAP revenue guidance. A reconciliation of the Company's forward-looking Adjusted Gross Profit Margin, Adjusted EBITDA and Adjusted Diluted EPS guidance to the most directly comparable GAAP financial measures is not provided because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including acquisitions and related expenses; impact of purchase price allocations for recently completed acquisitions; future changes in the fair value of contingent considerations; future restructuring expenses; foreign exchange gains/(losses); significant discrete income tax expenses (benefits); benefits or expenses associated with the completion of tax audits; divestitures and related expenses; gains and losses from sale of real estate assets; costs related to product line closures; intangible asset impairment charges and related asset write-offs; and other charges reflected in the Company's reconciliation of historical non-GAAP financial measures, the amounts of which, based on past experience, could be material. For additional information regarding Novanta's non-GAAP financial measures, see 'Use of Non-GAAP Financial Measures' below. Article content Conference Call Information Article content The Company will host a conference call on Tuesday, August 5, 2025 at 10:00 a.m. ET to discuss these results and to provide a business update. To access the call, please dial (888) 346-3959 prior to the scheduled conference call time. Alternatively, the conference call can be accessed online via a live webcast on the Events & Presentations page of the Investors section of the Company's website at Article content A replay of the audio webcast will be available approximately three hours after the conclusion of the call in the Investor Relations section of the Company's website at The replay will remain available until Monday, September 29, 2025. Article content Use of Non-GAAP Financial Measures Article content The non-GAAP financial measures used in this press release are Organic Revenue Growth, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Income Before Income Taxes, Adjusted Income Tax Provision/(Benefit) and Effective Tax Rate, Adjusted Net Income, Adjusted Diluted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Free Cash Flow as a Percentage of Net Income, and Net Debt. Article content The Company believes that these non-GAAP financial measures provide useful and supplementary information to investors regarding the operating performance of the Company. It is management's belief that these non-GAAP financial measures would be particularly useful to investors because of the significant changes that have occurred outside of the Company's day-to-day business in accordance with the execution of the Company's strategy. This strategy includes streamlining the Company's existing operations through site and functional consolidations, strategic divestitures and product line closures, expanding the Company's business through significant internal investments, and broadening the Company's product and service offerings through acquisitions of innovative and complementary technologies and solutions. The financial impact of certain elements of these activities, particularly acquisitions, divestitures, and site and functional restructurings, is often large relative to the Company's overall financial performance and can adversely affect the comparability of its operating results and investors' ability to analyze the business from period to period. Article content The Company's Adjusted EBITDA, Organic Revenue Growth and Adjusted Gross Profit Margin are used by management to evaluate operating performance, communicate financial results to the Board of Directors, benchmark results against historical performance and the performance of peers, and evaluate investment opportunities, including acquisitions and divestitures. In addition, Adjusted EBITDA, Organic Revenue Growth and Adjusted Gross Profit Margin are used to determine bonus payments for senior management and employees. The Company has also used in the past, and may use in the future, Adjusted Diluted EPS and Adjusted EBITDA as performance targets for certain performance-based restricted stock units. Accordingly, the Company believes that these non-GAAP financial measures provide greater transparency and insight into management's method of analysis. Article content Non-GAAP financial measures should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material effect on the Company's reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company's financial results. The non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, GAAP financial measures. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release. Article content Safe Harbor and Forward-Looking Information Article content Certain statements in this release are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements contained in this news release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as 'expect,' 'intend,' 'anticipate,' 'estimate,' 'believe,' 'future,' 'could,' 'should,' 'plan,' 'aim,' and other similar expressions. These forward-looking statements include, but are not limited to, statements regarding anticipated financial performance and financial position, including our financial outlook for the full year 2025 and third quarter of 2025; expectations for new product sales; expectations for our end markets and market position; macroeconomic expectations; our competitive position, including our positioning for long-term growth, capital spending and momentum from new product launches; our acquisition strategy; and other statements that are not historical facts. Article content These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various important factors, including, but not limited to, the following: economic and political conditions and the effects of these conditions on our customers' businesses, capital expenditures and level of business activities; our dependence upon our ability to respond to fluctuations in product demand; our ability to continuously innovate, to introduce new products in a timely manner, and to manage transitions to new product innovations effectively; customer order timing and other similar factors; disruptions or breaches in security of our or our third-party providers' information technology systems; risks associated with our operations in foreign countries; our increased use of outsourcing in foreign countries; risks associated with increased outsourcing of components manufacturing; our exposure to increased tariffs, trade restrictions or taxes on our products; our ability to contain or reduce costs; violations of our intellectual property rights and our ability to protect our intellectual property against infringement by third parties; risk of losing our competitive advantage; our failure to successfully integrate recent and future acquisitions into our business; our ability to attract and retain key personnel; our restructuring and realignment activities; product defects or problems integrating our products with other vendors' products; disruptions in the supply of certain key components and other goods from our suppliers; our failure to accurately forecast component and raw material requirements leading to additional costs and significant delays in shipments; production difficulties and product delivery delays or disruptions; our exposure to extensive medical device regulations, which may impede or hinder the approval, certification or sale of our products and, in some cases, may ultimately result in an inability to obtain approval or certification of certain products or may result in the recall or seizure of previously approved or certified products; potential penalties for violating foreign and U.S. federal and state healthcare laws and regulations; impact of healthcare industry cost containment and healthcare reform measures; changes in governmental regulations related to our business or products; actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards, and other requirements; our failure to implement new information technology systems successfully; changes in foreign currency rates; our failure to realize the full value of our intangible assets; our reliance on original equipment manufacturer customers; the loss of sales, or significant reduction in orders from, any major customers; increasing scrutiny and changing expectations from investors, customers, governments and other stakeholders and third parties with respect to corporate sustainability policies and practices; the effects of climate change and related regulatory responses; our exposure to the credit risk of some of our customers and in weakened markets; being subject to U.S. federal income taxation even though we are a non-U.S. corporation; changes in tax laws and fluctuations in our effective tax rates; any need for additional capital to adequately respond to business challenges or opportunities and repay or refinance our existing indebtedness, which may not be available on acceptable terms or at all; our existing indebtedness limiting our ability to engage in certain activities; volatility in the market price for our common shares; and our failure to maintain appropriate internal controls in the future. Article content Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect the Company's operating results and financial condition are discussed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated by our subsequent filings with the Securities and Exchange Commission. Such statements are based on the Company's beliefs and assumptions and on information currently available to the Company. The Company disclaims any obligation to publicly update or revise any such forward-looking statements as a result of developments occurring after the date of this document except as required by law. Article content About Novanta Article content Novanta is a leading global supplier of core technology solutions that give medical, life science, and advanced industrial original equipment manufacturers a competitive advantage. We combine deep proprietary expertise and competencies in precision medicine, precision manufacturing, robotics and automation, and advanced surgery with a proven ability to solve complex technical challenges. This enables Novanta to engineer proprietary technology solutions that deliver extreme precision and performance, tailored to our customers' demanding applications. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation, the Novanta Growth System, and our customers' success. Novanta's common shares are quoted on Nasdaq under the ticker symbol 'NOVT.' Article content NOVANTA INC. (In thousands of U.S. dollars) (Unaudited) June 27, December 31, 2025 2024 ASSETS Current Assets Cash and cash equivalents $ 109,912 $ 113,989 Accounts receivable, net 161,202 151,026 Inventories 168,065 144,606 Prepaid expenses and other current assets 22,921 24,027 Total current assets 462,100 433,648 Property, plant and equipment, net 118,876 113,135 Operating lease assets 44,107 42,908 Intangible assets, net 203,630 185,844 Goodwill 649,093 584,098 Other assets 33,263 28,878 Total assets $ 1,511,069 $ 1,388,511 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Current portion of long-term debt $ 5,203 $ 4,691 Accounts payable 88,973 76,890 Accrued expenses and other current liabilities 87,762 86,210 Total current liabilities 181,938 167,791 Long-term debt 454,037 411,949 Operating lease liabilities 41,086 40,548 Other long-term liabilities 32,562 22,525 Total liabilities 709,623 642,813 Stockholders' Equity: Total stockholders' equity 801,446 745,698 Article content NOVANTA INC. (In thousands of U.S. dollars) (Unaudited) Adjusted Gross Profit and Adjusted Gross Profit Margin by Reportable Segment (Non-GAAP): Three Months Ended June 27, June 28, 2025 2024 Automation Enabling Technologies Gross Profit (GAAP) $ 58,206 $ 54,995 Gross Profit Margin (GAAP) 47.8 % 47.1 % Amortization of intangible assets 1,330 1,566 Adjusted Gross Profit (Non-GAAP) $ 59,536 $ 56,561 Adjusted Gross Profit Margin (Non-GAAP) 48.9 % 48.5 % Medical Solutions Gross Profit (GAAP) $ 49,514 $ 49,337 Gross Profit Margin (GAAP) 41.5 % 41.4 % Amortization of intangible assets 2,890 2,119 Inventory related charges associated with a product line closure 65 2,493 Adjusted Gross Profit (Non-GAAP) $ 52,469 $ 53,949 Adjusted Gross Profit Margin (Non-GAAP) 44.0 % 45.3 % Unallocated Gross Profit (GAAP) $ (974 ) $ (643 ) Adjusted Gross Profit (Non-GAAP) $ (974 ) $ (643 ) Novanta Inc. Gross Profit (GAAP) $ 106,746 $ 103,689 Gross Profit Margin (GAAP) 44.3 % 44.0 % Amortization of intangible assets 4,220 3,685 Inventory related charges associated with a product line closure 65 2,493 Adjusted Gross Profit (Non-GAAP) $ 111,031 $ 109,867 Adjusted Gross Profit Margin (Non-GAAP) 46.1 % 46.6 % Article content Non-GAAP Financial Measures Article content The following provides additional explanations for non-GAAP financial measures used by the Company, including explanations for certain non-GAAP adjustments that may not be present in the quarterly disclosures included in the current earnings release but have been used by the Company in the two most recent fiscal years. See the tables above for the calculations of the non-GAAP financial measures used in this earnings release. Article content Organic Revenue Growth Article content The Company defines the term 'organic revenue' as revenue excluding the impact from business acquisitions, divestitures, product line discontinuations, and the effect of foreign currency translation. The Company uses the related term 'organic revenue growth' to refer to the financial performance metric of comparing current period organic revenue with the reported revenue of the corresponding period in the prior year. The Company believes that this non-GAAP financial measure, when taken together with our GAAP financial measures, allows the Company and its investors to better measure the Company's performance and evaluate long-term performance trends. Organic revenue growth also facilitates easier comparisons of the Company's performance with prior and future periods and relative comparisons to its peers. The Company excludes the effect of foreign currency translation from these measures because foreign currency translation is subject to volatility and can obscure underlying business trends. The Company excludes the effect of acquisitions and divestitures because these activities can vary dramatically between reporting periods and between the Company and its peers, which the Company believes makes comparisons of long-term performance trends difficult for management and investors. Organic Revenue Growth is also used as a performance metric to determine bonus payments for senior management and employees. Article content Adjusted Gross Profit and Adjusted Gross Profit Margin Article content The calculation of Adjusted Gross Profit and Adjusted Gross Profit Margin excludes amortization of acquired intangible assets because: (i) the amounts are non-cash; (ii) the Company cannot influence the timing and amount of future expense recognition; and (iii) excluding such expenses provides investors and management better visibility into the underlying trends and performance of our businesses. The Company also excludes inventory related charges associated with product line closures as these costs occurred outside of the Company's day-to-day business for the reasons described above in the introductory paragraphs of the 'Use of Non-GAAP Financial Measures.' Article content Adjusted Operating Income and Adjusted Operating Margin Article content The calculation of Adjusted Operating Income and Adjusted Operating Margin excludes amortization of acquired intangible assets and inventory related charges associated with product line closures for the reasons described above for Adjusted Gross Profit and Adjusted Gross Profit Margin. The Company also excludes restructuring costs, acquisition and related costs, discrete costs related to the planning and design phase of an ERP system implementation, and charges related to an insurance recovery, as the significant charges have occurred outside of the Company's day-to-day business for the reasons described above in the introductory paragraphs of the 'Use of Non-GAAP Financial Measures.' Article content Adjusted Income Before Income Taxes Article content The calculation of Adjusted Income Before Income Taxes excludes amortization of acquired intangible assets, restructuring, acquisition and related costs, discrete costs related to the planning and design phase of an ERP system implementation, inventory-related charges associated with a product line closure, and charges related to an insurance recovery, for Adjusted Operating Income and Adjusted Operating Margin. The Company also excludes foreign exchange transaction gains (losses) as well as the write-off of costs related to our debt refinancing from the calculation of Adjusted Income Before Income Taxes as the Company cannot fully influence the timing and amount of foreign exchange transaction gains (losses). Article content Non-GAAP Income Tax Provision/(Benefit) and Effective Tax Rate Article content Non-GAAP Income Tax Provision/(Benefit) and Effective Tax Rate are calculated based on the Adjusted Income Before Income Taxes by jurisdiction, the applicable tax rates in effect for the respective jurisdictions and the income tax effect of non-GAAP adjustments discussed above. In addition, the Company excludes significant discrete income tax expenses (benefits) related to releases of valuation allowances and uncertain tax positions not related to current year activity, tax audits, certain changes in tax laws, and acquisition related tax planning actions on the Company's effective tax rate. Article content Adjusted Net Income Article content Because Income Before Income Taxes is included in determining Net Income, the calculation of Adjusted Net Income also excludes amortization of acquired intangible assets, restructuring, acquisition and related costs, discrete costs related to the planning and design phase of an ERP system implementation, inventory-related charges associated with a product line closure, and charges related to an insurance recovery, the write-off of costs related to our debt refinancing and foreign exchange transaction gains (losses) for the reasons described above for Adjusted Income Before Income Taxes. In addition, the Company excludes (i) significant discrete income tax expenses (benefits) related to releases of valuation allowances and uncertain tax positions, tax audits or amendments to prior year returns, certain changes in tax laws, and acquisition related tax planning actions on the Company's effective tax rate; and (ii) the income tax effect of non-GAAP adjustments discussed above. Article content Adjusted Diluted EPS Article content Because Net Income is used in the calculation of Diluted EPS, Adjusted Diluted EPS excludes: (i) amortization of acquired intangible assets; (ii) restructuring, acquisition and related costs; (iii) discrete costs related to the planning and design phase of an ERP system implementation; (iv) inventory-related charges associated with a product line closure; (v) charges related to an insurance recovery; (vi) foreign exchange transaction gains (losses); (vii) costs related to our debt refinancing; (viii) significant discrete income tax expenses (benefits) related to releases of valuation allowances, uncertain tax positions, tax audits or amendments to prior year returns, certain changes in tax laws, and acquisition related tax planning actions on the Company's effective tax rate; and (ix) the income tax effect of non-GAAP adjustments for the reasons described above for Adjusted Net Income. Article content Adjusted EBITDA and Adjusted EBITDA Margin Article content The Company defines Adjusted EBITDA as income before deducting interest (income) expense, income tax provision (benefit), depreciation, amortization, non-cash share-based compensation, restructuring, acquisition and related costs, discrete costs related to the planning and design phase of an ERP system implementation, inventory-related charges associated with a product line closure, and charges related to an insurance recovery, and other non-operating (income) expense items, including foreign exchange transaction (gains) losses, costs related to our debt refinancing and net periodic pension costs of the Company's frozen U.K. defined benefit pension plan for the reasons described above in the introductory paragraphs of the 'Use of Non-GAAP Financial Measures.' Article content Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of Revenue. Article content In evaluating Adjusted EBITDA and Adjusted EBITDA Margin, you should be aware that in the future the Company may incur expenses that are the same as, or similar to, some of the adjustments in this presentation. Article content Free Cash Flow and Free Cash Flow as a Percentage of Net Income Article content The Company defines Free Cash Flow as net cash provided by operating activities less cash paid for purchases of property, plant and equipment and plus cash proceeds from sales of property, plant and equipment. Free Cash Flow as a Percentage of Net Income is defined as Free Cash Flow divided by Net Income. Management believes these non-GAAP financial measures are important indicators of the Company's liquidity as well as its ability to service its outstanding debt and to fund future growth. Article content Article content Article content Article content Article content Contacts Article content Novanta Inc. Article content Article content Investor Relations Contact: Article content Article content Article content
