iolite Files Formal Complaint with Securities Regulatory Authority and Calls for the Immediate Resignation of Chairman Pierre Lépine and CEO & President Jean Martineau
Despite significant use of company resources to secure votes, the narrow margins in the Chairman's (60.98%) and CEO's (73.77%) re-election demonstrate the absence of any true mandate or vote of confidence in Dynacor's leadership.
The full complaint calls for investigation into potential:
Undisclosed loss of key talent and resulting risks.
Large-scale dismissals and forced resignations of longstanding personnel in Peru — without reason, notice, and severance — followed by the hiring of unqualified individuals at inappropriate pay levels, exposing the Company to serious operational, legal, and financial risks.
Failure to disclose the material deterioration of Veta Dorada — the subsidiary that generates 100% of the Company's revenue — misleading investors about the true state of the business.
Issues regarding the credibility of Dynacor's international expansion narrative given the obvious deterioration of the core business and loss of key talent, used to justify both a contested capital increase in January 2025 and the re-election of directors at the AGM.
Failure to revise guidance despite clear evidence of operational decline.
iolite has filed this complaint in good faith, in the interest of all shareholders, to accelerate long-overdue leadership change at Dynacor and to ensure transparency and proper disclosure. The scope and severity of management's failures leave no credible reason for Messrs. Lépine and Martineau to remain in office; their continued presence exposes the Company to unacceptable operational, financial, and reputational risk.
At the June 17, 2025 AGM – and again in a June 19, 2025 press release – management celebrated past achievements, touted international expansion, and reaffirmed optimistic guidance even as key operating metrics seem to have deteriorated.
Barely a week later, on June 27, the Company issued a self-contradictory release announcing a 'restructuring in Peru,' allegedly triggered by 'employee practices contrary to the Corporation's values and Code of Conduct,' yet presented as part of a global growth plan requiring more head-office hiring. Management hired an external firm to review the evidently serious matter, but offered no explanation of what went wrong or why a review was necessary, leaving investors completely in the dark.
iolite remains convinced Dynacor has real potential and is undervalued: it is a leading niche player in an attractive market, with nearly half its market cap in cash and positive free cash flow through Q1 2025. But the status quo is untenable. Dynacor urgently needs competent, decisive leadership of unimpeachable integrity – leadership capable of restoring trust, stabilizing operations, and unlocking the Company's full value for every shareholder.
To those who understand the issues, the solution is obvious. iolite stands ready to help.
About iolite
Founded in 2011 iolite Capital is a Switzerland-based investment manager with a focus on hidden champions: good businesses at attractive valuations. iolite serves a select circle of private and institutional clients who share the same entrepreneurial mindset, are willing to invest for the long term, and who would like to have first-hand access to a dedicated portfolio manager with substantial and meaningful skin in the game. Using a private equity approach, iolite conducts deep fundamental research, constructively engages with management, and adopts a long-term investment horizon. For more information on iolite, please visit www.iolitecapital.com.
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20 minutes ago
- Business Wire
Butterfly Network Reports Second Quarter 2025 Financial Results
BURLINGTON, Mass. & NEW YORK--(BUSINESS WIRE)-- Butterfly Network, Inc. (NYSE: BFLY) ('Butterfly' or the 'Company'), a digital health company transforming care with portable, semiconductor-based ultrasound technology and intuitive software, today announced financial results for the second quarter ended June 30, 2025, and provided a business update. Joseph DeVivo, Butterfly's President, Chief Executive Officer and Chairman commented, 'Quarter 2 marked one year since we launched Butterfly iQ3, and I'm pleased to say we achieved a new high – our strongest revenue quarter in Company history at $23.4 million. We also reached record gross margins of 64% and had our lowest cash use yet at $7.1 million. It's a real testament to the discipline of our team and the strength of our multi-pronged strategy – especially as we continue pushing toward breakeven in a challenging macro environment.' DeVivo continued, 'As we look ahead, we remain focused on scaling our core business, while unlocking new revenue streams by leveraging our existing technology. Handheld ultrasound is becoming a foundational part of care delivery, and with our Compass AI software coming soon, as well as our P5 chip and fourth-generation technology on the horizon, we're poised to continue leading that shift. We will continue innovating across hardware and software to expand adoption and maximize the value of the platform we've built.' Recent Operational and Strategic Highlights: Butterfly Garden Growth: Two new partners were added to the portfolio in Q2, while three existing partners received FDA clearance for their AI-powered clinical applications: iCardio, HeartFocus by DESKi, and Deep Echo. HeartFocus expects to launch to Butterfly users in Q3, with the other applications launching shortly thereafter. New Educational Resources: Butterfly released a new Aorta Exam Protocol on its ScanLab™ educational software, helping users learn to scan for conditions like abdominal aortic aneurysms. Additionally, through Butterfly Garden, the University of Rochester Medical Center launched MSK VUE, an AI-powered musculoskeletal ultrasound training app for Butterfly devices, designed to help clinicians identify key peripheral structures. Clinical Research: New research from Tufts University published in European Heart Journal - Imaging Methods and Practice demonstrated that a machine learning model specifically trained to work on Butterfly iQ+ devices can accurately detect aortic stenosis. Additionally, the full findings from the Rutgers Robert Wood Johnson Medical School and Robert Wood Johnson University Hospital study previewed earlier this year have now been accepted into a prominent medical journal for publication in Q3. Announcing Compass AI: Next-generation, cloud-based enterprise software platform is expected to launch in Q3, and aims to further optimize documentation processes through new, advanced AI tools and other enhancements like automated voice control to capture caregivers' notes and auto-populate fields in seconds. Butterfly HomeCare Progress: Concluded pilot program, which demonstrated meaningful reductions in readmissions for congestive heart failure patients being managed at risk. The Company and partner are now working toward completion of their first commercial agreement, aiming to deploy the Butterfly HomeCare solution in the partner's first state before the end of the year. Three Months Ended June 30, 2025 Financial Results Revenue: Total revenue was $23.4 million, up 9% from $21.5 million in the second quarter of 2024. U.S. revenue was $17.2 million, essentially flat to prior year, driven by the delivery of semiconductor chips to one of our Octiv partners and higher average selling prices, but partially offset by lower probe sales volume. International revenue increased 19% year-over-year to $6.2 million, driven by both price and volume due to the international launch of iQ3 during the third quarter of 2024. Gross profit: Gross profit was $14.9 million versus $12.6 million in the prior year period. Gross margin increased to 63.7% from 58.6% in the prior year period. This increase was primarily due to the higher average selling prices and higher software and other services margins due to a reduction in software amortization and lower hosting costs. Operating expenses: Operating expenses were $31.0 million, up 4% from $29.8 million in the prior year period. Total operating expenses excluding stock-based compensation and other expenses were $23.1 million, compared to $23.4 million in the prior year period, essentially flat to prior year. Net loss: Net loss was $13.8 million, compared to $15.7 million in the prior year period. Adjusted EBITDA: Adjusted EBITDA loss was $6.2 million, compared to $8.1 million in the prior year period. Adjusted EPS: Adjusted EPS was $(0.03), compared to $(0.05) in the prior year period. Cash and cash equivalents: Cash and cash equivalents were $148.1 million as of June 30, 2025. Guidance Revised Revenue guidance and improved Adjusted EBITDA guidance for the Fiscal Year 2025: Revenue of $92 million to $96 million or approximately 15% growth Adjusted EBITDA loss of $32 million - $37 million Chief Financial and Operations Officer Transition Effective today, August 1, 2025, Heather Getz, Chief Financial and Operations Officer, has resigned to pursue other interests. Ms. Getz will assist the Company to ensure a successful transition of her responsibilities prior to her departure. Her resignation is not the result of any disagreement regarding the Company's operations, accounting, or other policies or practices. Effective upon Ms. Getz's resignation, Megan Carlson, Chief Accounting Officer and Senior Vice President of Finance and Accounting, will assume the roles of principal financial and accounting officer on an interim basis. Ms. Carlson has held various accounting and finance leadership positions at public companies in the SaaS and medical device industries and began her career in public accounting. She joined Butterfly in 2021 and has been instrumental in the Company's financial and accounting functions, including most recently the equity offering completed in January and, earlier in her tenure, establishing the Company's internal controls over financial reporting. Butterfly has begun the process of engaging a search firm to assist in identifying Ms. Getz's replacement. 'On behalf of our employees and Board of Directors, I want to thank Heather for her more than three years of dedicated service. We value the discipline she instilled across the organization, and under her leadership Butterfly strengthened its balance sheet and delivered on its financial commitments to shareholders. We wish her every success in her future endeavors,' said Butterfly CEO Joseph DeVivo. 'I have the utmost confidence in Megan's ability to lead our finance organization and ensure a seamless transition. Megan's experience and deep understanding of our financial operations will be instrumental as we enter a new chapter for the company.' 'It has been a privilege to serve on Butterfly's leadership team, and I am proud of our accomplishments during my tenure,' said Ms. Getz. 'The dedicated team at Butterfly is well-positioned to continue executing on its strategic vision to create shareholder value.' Reconciliation of GAAP to Adjusted Reconciliations of gross margin to adjusted gross margin and of net loss to adjusted EBITDA and adjusted EPS for the three and six months ended June 30, 2025, and 2024 are provided in the financial schedules that are part of this press release. An explanation of these non-GAAP financial measures is also included below under the heading 'Non-GAAP Financial Measures.' Conference Call A conference call and webcast to discuss second quarter 2025 financial performance and operational progress is scheduled for 8:00 am ET on August 1, 2025. The conference call will be broadcast live in listen-only mode via a webcast on Butterfly's Investor Relations website at Events & Presentations. Individuals interested in listening to the conference call on your telephone may do so by dialing approximately ten minutes prior to start time: US domestic callers: +1 833-470-1428 International (Toll): +1 404-975-4839 Global Dial-In Numbers: Access Code: 685760 After the live webcast, the call will be archived on Butterfly's Investor Relations page. In addition, a telephone replay of the call will be available until August 15, 2025, by dialing: About Butterfly Network Butterfly Network, Inc. (NYSE: BFLY) is a healthcare company driving a digital revolution in medical imaging with its proprietary Ultrasound-on-Chip™ semiconductor technology and ultrasound software solutions. In 2018, Butterfly launched the world's first handheld, single-probe, whole-body ultrasound system, Butterfly iQ. The iQ+ followed in 2020, and the iQ3 in 2024, each with improved processing power and performance by leveraging Moore's Law. The iQ3 earned Best Medical Technology at the 2024 Prix Galien USA Awards, a prestigious honor and one of the highest accolades in healthcare. Butterfly's innovations have also been recognized by Fierce 50, TIME's Best Inventions and Fast Company's World Changing Ideas, among other achievements. Butterfly combines advanced hardware, intelligent software, AI, services, and education to drive adoption of affordable, accessible imaging. Clinical publications demonstrate that its handheld ultrasound probes paired with Compass™ enterprise workflow software, can help hospital systems improve care workflows, reduce costs, and enhance provider economics. With a cloud-based solution that enables care anywhere through next-generation mobility, Butterfly aims to democratize healthcare by addressing critical global healthcare challenges. Butterfly devices are commercially available to trained healthcare practitioners in areas including, but not limited to, parts of Africa, Asia, Australia, Europe, the Middle East, North America and South America; to learn more about available countries, visit: Non-GAAP Financial Measures In addition to providing financial measures based on generally accepted accounting principles in the United States of America ('GAAP'), we provide additional financial measures that are not prepared in accordance with GAAP ('non-GAAP'). The non-GAAP financial measures included in this press release are adjusted gross profit, adjusted gross margin, adjusted EBITDA, and adjusted EPS. We present non-GAAP financial measures in order to assist readers of our financial statements in understanding the core operating results that our management uses to evaluate the business and for financial planning purposes. Our non-GAAP financial measures provide an additional tool for investors to use in comparing our financial performance over multiple periods. The non-GAAP financial measures included in this press release are key performance measures that our management uses to assess our operating performance. These non-GAAP measures facilitate internal comparisons of our operating performance on a more consistent basis. We use these performance measures for business planning purposes and forecasting. We believe that these non-GAAP measures enhance an investor's understanding of our financial performance as they are useful in assessing our operating performance from period-to-period by excluding certain items that we believe are not representative of our core business. The non-GAAP financial measures included in this press release may not be comparable to similarly titled measures of other companies because they may not calculate these measures in the same manner. These non-GAAP financial measures are not prepared in accordance with GAAP and should not be considered in isolation of, or as an alternative to, measures prepared in accordance with GAAP. When evaluating the Company's performance, you should consider adjusted gross profit, adjusted gross margin, adjusted EBITDA, and adjusted EPS alongside other financial performance measures prepared in accordance with GAAP, including gross profit, gross margin, net loss, and EPS. The non-GAAP financial measures do not replace the presentation of our GAAP financial results and should only be used as a supplement to, not as a substitute for, our financial results presented in accordance with GAAP. In this press release, we have provided reconciliations of adjusted gross profit to gross profit, adjusted gross margin to gross margin, and adjusted EBITDA and adjusted EPS to net loss, the most directly comparable GAAP financial measures. Reconciliations of our non-GAAP financial measures to corresponding GAAP measures are not available on a forward-looking basis because we are unable to predict with reasonable certainty the non-cash component of employee compensation expense, changes in our working capital needs, variances in our supply chain, the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations, and other such items without unreasonable effort. These items are uncertain, depend on various factors, and could be material to our results computed in accordance with GAAP. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Forward Looking Statements This press release includes 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. Our actual results may differ from our expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as 'expect,' 'estimate,' 'project,' 'budget,' 'forecast,' 'anticipate,' 'intend,' 'plan,' 'may,' 'will,' 'could,' 'should,' 'believe,' 'predict,' 'potential,' 'continue,' and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, our expectations with respect to financial results, future performance, commercialization and plans to deploy our products and services, including expectations regarding the launches of our Compass AI software, our P5 chip and fourth-generation technology, and the HeartFocus launch to Butterfly users, development of products and services, and the size and potential growth of current or future markets for our products and services. Forward-looking statements are based on our current beliefs and assumptions and on information currently available to us. These forward-looking statements involve significant known and unknown risks and uncertainties and other factors that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside our control and are difficult to predict. Factors that may cause such differences include, but are not limited to: our ability to grow and manage growth effectively; the success, cost, and timing of our product and service development activities; the potential attributes and benefits of our products and services; the degree to which our products and services are accepted by healthcare practitioners and patients for their approved uses; our ability to obtain and maintain regulatory approval for our products, and any related restrictions and limitations on the use of any authorized product; our ability to identify, in-license, or acquire additional technology; our ability to maintain our existing license, manufacturing, supply, and distribution agreements; our ability to compete with other companies currently marketing or engaged in the development of ultrasound imaging devices, many of which have greater financial and marketing resources than us; changes in applicable laws or regulations; the size and growth potential of the markets for our products and services, and our ability to serve those markets, either alone or in partnership with others; the pricing of our products and services, and reimbursement for medical procedures conducted using our products and services; our estimates regarding expenses, revenue, capital requirements, and needs for additional financing; our financial performance; our ability to attract and retain customers; our ability to manage our growth effectively; our ability to protect or enforce our intellectual property rights; our ability to maintain the listing of our Class A common stock on the New York Stock Exchange; and other risks and uncertainties indicated from time to time in our most recent Annual Report on Form 10-K or in subsequent filings that we make with the Securities and Exchange Commission. We caution that the foregoing list of factors is not exclusive. We caution you not to place undue reliance upon any forward-looking statements, which speak only as of the date of this press release. We do not undertake or accept any obligation or undertake to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based. BUTTERFLY NETWORK, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited) 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 148,136 $ 88,775 Accounts receivable, net of allowance for doubtful accounts of $2,726 and $2,583 at June 30, 2025 and December 31, 2024, respectively 24,527 20,793 Inventories 68,907 70,789 Current portion of vendor advances 4,555 5,547 Prepaid expenses and other current assets 7,622 6,709 Total current assets 253,747 192,613 Property and equipment, net 17,329 19,518 Intangible assets, net 8,216 8,916 Non-current portion of vendor advances 14,790 15,042 Operating lease assets 13,461 14,233 Other non-current assets 5,735 5,760 Total assets $ 313,278 $ 256,082 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 3,320 $ 4,250 Deferred revenue, current 15,642 16,139 Accrued purchase commitments, current 131 131 Warrant liabilities, current 1,239 — Accrued expenses and other current liabilities 24,334 27,695 Total current liabilities 44,666 48,215 Deferred revenue, non-current 7,231 7,315 Warrant liabilities, non-current — 2,685 Operating lease liabilities 19,097 20,398 Other non-current liabilities 9,478 8,637 Total liabilities 80,472 87,250 Commitments and contingencies Stockholders' equity: Class A common stock $.0001 par value; 600,000,000 shares authorized at June 30, 2025 and December 31, 2024; 224,609,833 and 188,626,154 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 22 19 Class B common stock $.0001 par value; 27,000,000 shares authorized at June 30, 2025 and December 31, 2024; 26,426,937 shares issued and outstanding at June 30, 2025 and December 31, 2024 3 3 Additional paid-in capital 1,062,712 970,940 Accumulated deficit (829,931 ) (802,130 ) Total stockholders' equity 232,806 168,832 Total liabilities and stockholders' equity $ 313,278 $ 256,082 Expand BUTTERFLY NETWORK, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) Six months ended June 30, 2025 2024 Cash flows from operating activities: Net loss $ (27,801 ) $ (37,467 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation, amortization, and impairments 4,442 5,217 Non-cash interest expense 713 607 Write-down of inventories 66 (81 ) Stock-based compensation expense 12,148 11,383 Change in fair value of warrant liabilities (1,446 ) (413 ) Other 172 462 Changes in operating assets and liabilities: Accounts receivable (3,909 ) (3,165 ) Inventories 1,816 (1,072 ) Prepaid expenses and other assets (874 ) 165 Vendor advances 1,244 (1,396 ) Accounts payable (927 ) (587 ) Deferred revenue (581 ) (908 ) Change in operating lease assets and liabilities (411 ) (348 ) Accrued expenses and other liabilities (3,496 ) (3,064 ) Net cash used in operating activities (18,844 ) (30,667 ) Cash flows from investing activities: Purchases of property, equipment, and intangible assets, including capitalized software (1,249 ) (1,872 ) Sales of property and equipment — 35 Net cash used in investing activities (1,249 ) (1,837 ) Cash flows from financing activities: Proceeds from exercise of stock options and warrants 274 — Proceeds from employee stock purchase plan 949 — Net proceeds from share offering 81,006 — Payments to tax authorities for restricted stock units withheld (2,775 ) — Net cash provided by financing activities 79,454 — Net increase (decrease) in cash, cash equivalents, and restricted cash 59,361 (32,504 ) Cash, cash equivalents, and restricted cash, beginning of period 92,790 138,650 Cash, cash equivalents, and restricted cash, end of period $ 152,151 $ 106,146 Expand BUTTERFLY NETWORK, INC. ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN (In thousands) (Unaudited) Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Revenue $ 23,383 $ 21,487 $ 44,608 $ 39,143 Cost of revenue 8,492 8,901 16,336 16,280 Gross profit $ 14,891 $ 12,586 $ 28,272 $ 22,863 Gross margin 63.7 % 58.6 % 63.4 % 58.4 % Add: Write-downs and write-offs of inventories 14 — 66 — Adjusted gross profit $ 14,905 $ 12,586 $ 28,338 $ 22,863 Adjusted gross margin 63.7 % 58.6 % 63.5 % 58.4 % Depreciation and amortization $ 1,138 $ 1,646 $ 2,541 $ 3,231 % of revenue 4.9 % 7.7 % 5.7 % 8.3 % Expand BUTTERFLY NETWORK, INC. ADJUSTED EBITDA AND ADJUSTED EPS (In thousands, except share and per share amounts) (Unaudited) Included on the condensed consolidated statements of operations and comprehensive loss as: Three months ended June 30, Six months ended June 30, 2025 2024 2025 2024 Net loss Net loss $ (13,834 ) $ (15,706 ) $ (27,801 ) $ (37,467 ) Stock-based compensation R&D, S&M, and G&A 5,864 5,859 12,148 11,383 Write-downs and write-offs of inventories Cost of revenue 14 — 66 — Change in fair value of warrant liabilities Change in fair value of warrant liabilities (620 ) (620 ) (1,446 ) (413 ) Other Other 1,987 606 2,691 1,964 Other expense (income), net Other income (expense), net (531 ) 59 (2,906 ) 201 Adjusted net loss (7,120 ) (9,802 ) (17,248 ) (24,332 ) Interest income Interest income (1,503 ) (1,291 ) (3,155 ) (2,802 ) Interest expense Interest expense 368 309 715 609 Provision for income taxes Provision for income taxes 20 17 27 20 Depreciation and amortization Cost of revenue, R&D, S&M, and G&A 2,082 2,633 4,442 5,217 Adjusted EBITDA $ (6,153 ) $ (8,134 ) $ (15,219 ) $ (21,288 ) Adjusted EPS $ (0.03 ) $ (0.05 ) $ (0.07 ) $ (0.12 ) Weighted average shares used to compute adjusted EPS 248,393,811 211,663,554 241,695,884 210,268,501 Expand
Business Wire
20 minutes ago
- Business Wire
AdvanSix Announces Second Quarter 2025 Financial Results
PARSIPPANY, N.J.--(BUSINESS WIRE)--AdvanSix (NYSE: ASIX), a diversified chemistry company, today announced its financial results for the second quarter ending June 30, 2025. Overall, the Company delivered resilient earnings with strong sequential improvement and executed key growth and enterprise initiatives to support long-term sustainable performance. Second Quarter 2025 Summary "Our resilient second quarter results reflect our collective organization's execution and the advantages of our business model and diverse product portfolio amid an evolving macro environment,' said Erin Kane, president and CEO of AdvanSix. 'While we faced an earlier end to the spring domestic application season, earnings and cash flow improved sequentially from the first quarter driven by strong performance from our Plant Nutrients business. End market demand across the rest of our portfolio remains softer overall and we continue to navigate margin impact driven by higher raw material prices, namely natural gas and sulfur. We have a demonstrated track record of successfully performing through a multitude of environments and remain confident in our ability to deliver long-term value. We continue to progress on 45Q carbon capture tax credits with an additional $8 million claimed in 2Q25, and our healthy balance sheet continues to support in-flight growth and enterprise initiatives to sustainably improve through cycle performance." Summary second quarter 2025 financial results for the Company are included below: Sales of $410 million in the quarter decreased approximately 10% versus the prior year. Sales volume decreased approximately 8% primarily driven by softer demand in key nylon end markets including engineering plastics applications serving the auto sector. Raw material pass-through pricing was down 5% following a net cost decrease in benzene and propylene (inputs to cumene which is a key feedstock to our products). Market-based pricing was favorable by 3% driven by continued strength in Plant Nutrients reflecting favorable North American ammonium sulfate supply and demand conditions. Sales by product line and approximate percentage of total sales are included below: Adjusted EBITDA of $55.7 million in the quarter decreased $22.5 million versus the prior year primarily driven by a decline in Chemical Intermediates pricing, net of raw material costs, and lower Nylon Solutions sales volume. Adjusted earnings per share of $1.24 decreased $0.31 versus the prior year driven primarily by the factors discussed above partially offset by approximately $8 million, or $0.29 per share, of 45Q carbon capture tax credits. Cash flow from operations of $21.1 million in the quarter decreased $29.1 million versus the prior year primarily due to lower net income and the unwinding of prior year ammonium sulfate pre-buy cash advances. Capital expenditures of $28.3 million in the quarter decreased $5.2 million versus the prior year. Outlook Anticipate higher ammonium sulfate pricing in 3Q25 year-over-year reflecting strong fall fill program; however, typical North American ammonium sulfate seasonality expected to drive 3Q25 sequential domestic pricing decline Acetone spread over refinery grade propylene costs anticipated to be lower year-over-year, but expected to remain near cycle averages Navigating an extended downturn in the nylon cycle - focused on controllable levers to optimize performance Expect Capital Expenditures of $135 to $145 million in 2025, reflecting the planned progression of our SUSTAIN growth program, and refined execution timing to address critical enterprise risk mitigation Continue to expect pre-tax income impact of plant turnarounds to be $25 to $30 million in 2025 versus approximately $58 million in 2024 "We are well-positioned as an American manufacturer of essential chemistries serving a diverse set of end market applications with alignment to domestic agriculture, manufacturing supply chains and energy markets. The current market backdrop is mixed overall with favorable underlying fundamentals in Plant Nutrients contrasted against an extended downturn in Nylon Solutions. While we anticipate typical North American ammonium sulfate seasonality, we are starting the third quarter with a strong fall fill program at higher pricing levels compared to the prior year. In Chemical Intermediates, acetone pricing over raw materials has moderated off 2024 multi-year highs but remains near cycle averages, as anticipated. In times of uncertainty, we're keenly focused on delivering on controllable levers. This includes taking a measured and disciplined approach to cost and cash management including tensioned prioritization of our base capital investments, and optimizing mix and production output for the most profitable parts of our business. We remain confident in the growth prospects for AdvanSix, and are committed to delivering long-term value to our shareholders,' concluded Kane. Sustainability Report The Company released its 2024 Sustainability Report. You can find the report and read more about all of the great work and initiatives across the organization at AdvanSix Sustainability. More recently, the Company was awarded a 2025 Gold rating for corporate social responsibility from EcoVadis, with our score placing us in the top three percent of all companies assessed. Dividend The Company's Board of Directors declared a quarterly cash dividend of $0.16 per share on the Company's common stock. The dividend is payable on August 26, 2025 to stockholders of record as of the close of business on August 12, 2025. Conference Call Information AdvanSix will discuss its results during its investor conference call today starting at 9:30 a.m. ET. To participate on the conference call, dial (844) 855-9494 (domestic) or (412) 858-4602 (international) approximately 10 minutes before the 9:30 a.m. ET start, and tell the operator that you are dialing in for AdvanSix's second quarter 2025 earnings call. The live webcast of the investor call as well as related presentation materials can be accessed at Investors can hear a replay of the conference call from 12 noon ET on Aug 1 until 12 noon ET on Aug 8 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (international). The access code is 4066943. About AdvanSix AdvanSix is a diversified chemistry company that produces essential materials for our customers in a wide variety of end markets and applications that touch people's lives. Our integrated value chain of our five U.S.-based manufacturing facilities plays a critical role in global supply chains and enables us to innovate and deliver essential products for our customers across building and construction, fertilizers, agrochemicals, plastics, solvents, packaging, paints, coatings, adhesives, electronics and other end markets. Guided by our core values of Safety, Integrity, Accountability and Respect, AdvanSix strives to deliver best-in-class customer experiences and differentiated products in the industries of nylon solutions, plant nutrients, and chemical intermediates. More information on AdvanSix can be found at Forward Looking Statements This release contains certain statements that may be deemed 'forward-looking statements' within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, that address activities, events or developments that our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements may be identified by words such as "expect," "anticipate," "estimate," 'outlook,' "project," "strategy," "intend," "plan," "target," "goal," "may," "will," "should" and "believe" and other variations or similar terminology and expressions. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risks, uncertainties and other factors, many of which are beyond our control and difficult to predict, which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to: general economic and financial conditions in the U.S. and globally; the potential effects of inflationary pressures, tariffs or the imposition of new tariffs, trade wars, barriers or restrictions, or threats of such actions, changes in interest rates, labor market shortages and supply chain issues; instability or volatility in financial markets or other unfavorable economic or business conditions caused by geopolitical concerns, including as a result of new or proposed legislation or regulatory, trade or other policies in or impacting the U.S., the conflict between Russia and Ukraine, the conflicts in Israel, Gaza and Iran, and related uncertainty in the surrounding region, and the possible expansion of such conflicts; the effect of any of the foregoing on our customers' demand for our products and our suppliers' ability to manufacture and deliver our raw materials, including implications of reduced refinery utilization in the U.S.; our ability to sell and provide our goods and services; the ability of our customers to pay for our products; any closures of our and our customers' offices and facilities; risks associated with increased phishing, compromised business emails and other cybersecurity attacks, data privacy incidents and disruptions to our technology infrastructure; risks associated with operating with a reduced workforce; risks associated with our indebtedness including compliance with financial and restrictive covenants, and our ability to access capital on reasonable terms, at a reasonable cost, or at all, due to economic conditions or otherwise; the impact of scheduled turnarounds and significant unplanned downtime and interruptions of production or logistics operations as a result of mechanical issues or other unanticipated events such as fires, severe weather conditions, natural disasters, pandemics and geopolitical conflicts and related events; price fluctuations, cost increases and supply of raw materials; our operations and growth projects requiring substantial capital; growth rates and cyclicality of the industries we serve including global changes in supply and demand; failure to develop and commercialize new products or technologies; loss of significant customer relationships; adverse trade and tax policies; extensive environmental, health and safety laws that apply to our operations; hazards associated with chemical manufacturing, storage and transportation; litigation associated with chemical manufacturing and our business operations generally; inability to acquire and integrate businesses, assets, products or technologies; protection of our intellectual property and proprietary information; prolonged work stoppages as a result of labor difficulties or otherwise; failure to maintain effective internal controls; our ability to declare and pay quarterly cash dividends and the amounts and timing of any future dividends; our ability to repurchase our common stock and the amount and timing of any future repurchases; disruptions in supply chain, transportation and logistics; potential for uncertainty regarding qualification for tax treatment of our spin-off; fluctuations in our stock price; and changes in laws or regulations applicable to our business. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ materially from those contemplated by such forward-looking statements as a result of a number of risks, uncertainties and other factors including those noted above and those identified in our filings with the Securities and Exchange Commission (SEC), including the risk factors in Part 1, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, as updated in subsequent reports filed with the SEC. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph. We do not undertake to update or revise any of our forward-looking statements. Non-GAAP Financial Measures This press release includes certain non-GAAP financial measures intended to supplement, not to act as substitutes for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided in this press release. Investors are urged to consider carefully the comparable GAAP measures and the reconciliations to those measures provided. Non-GAAP measures in this press release may be calculated in a way that is not comparable to similarly-titled measures reported by other companies. December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 18,446 $ 19,564 Accounts and other receivables – net 159,702 145,673 Inventories – net 221,764 212,386 Taxes receivable 15,243 503 Other current assets 19,021 8,990 Total current assets 434,176 387,116 Property, plant and equipment – net 936,309 917,858 Operating lease right-of-use assets 136,888 153,438 Goodwill 56,192 56,192 Intangible assets 41,619 43,144 Other assets 41,218 37,172 Total assets $ 1,646,402 $ 1,594,920 LIABILITIES Current liabilities: Accounts payable $ 231,907 $ 228,761 Accrued liabilities 48,200 47,264 Income taxes payable 384 1,047 Operating lease liabilities – short-term 38,718 42,493 Deferred income and customer advances 1,858 37,538 Total current liabilities 321,067 357,103 Deferred income taxes 151,938 145,299 Operating lease liabilities – long-term 99,037 111,400 Line of credit – long-term 240,000 195,000 Other liabilities 10,628 11,468 Total liabilities 822,670 820,270 STOCKHOLDERS' EQUITY Common stock, par value $0.01; 200,000,000 shares authorized; 33,152,286 shares issued and 26,844,187 outstanding at June 30, 2025; 32,989,165 shares issued and 26,737,036 outstanding at December 31, 2024 332 330 Preferred stock, par value $0.01; 50,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2025 and December 31, 2024 — — Treasury stock at par (6,308,099 shares at June 30, 2025; 6,252,129 shares at December 31, 2024) (63 ) (63 ) Additional paid-in capital 140,097 136,872 Retained earnings 677,354 631,541 Accumulated other comprehensive income 6,012 5,970 Total stockholders' equity 823,732 774,650 Total liabilities and stockholders' equity $ 1,646,402 $ 1,594,920 Expand AdvanSix Inc. Condensed Consolidated Statements of Operations (Unaudited) (Dollars in thousands, except share and per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Sales $ 410,022 $ 453,479 $ 787,813 $ 790,308 Costs, expenses and other: Costs of goods sold 351,308 372,111 675,628 705,975 Selling, general and administrative expenses 25,416 24,431 48,825 48,024 Interest expense, net 2,255 3,514 3,796 6,213 Other non-operating (income) expense, net (607 ) 1,351 (1,015 ) 1,441 Total costs, expenses and other 378,372 401,407 727,234 761,653 Income before taxes 31,650 52,072 60,579 28,655 Income tax expense 279 13,145 5,864 7,124 Net income $ 31,371 $ 38,927 $ 54,715 $ 21,531 Earnings per common share Diluted $ 1.15 $ 1.43 $ 2.01 $ 0.79 Weighted average common shares outstanding Basic 26,896,037 26,839,429 26,867,252 26,859,044 Expand AdvanSix Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (Dollars in thousands) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cash flows from operating activities: Net income $ 31,371 $ 38,927 $ 54,715 $ 21,531 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 19,461 19,162 38,639 38,264 (Gain) loss on disposal of assets 33 172 (177 ) 261 Deferred income taxes 2,592 (357 ) 6,646 751 Stock-based compensation 2,309 2,193 4,287 4,404 Amortization of deferred financing fees 154 154 309 309 Operational asset adjustments — 1,200 — 1,200 Changes in assets and liabilities, net of business acquisitions: Accounts and other receivables 19,658 (186 ) (13,994 ) (6,004 ) Inventories 1,093 15,094 (9,378 ) 36,004 Taxes receivable (15,188 ) (171 ) (14,740 ) 1,255 Accounts payable (6,939 ) (8,686 ) 12,423 (61,681 ) Income taxes payable (2,206 ) 72 (663 ) (7,026 ) Accrued liabilities 5,510 3,999 561 6,149 Deferred income and customer advances (24,724 ) (10,138 ) (35,680 ) (14,530 ) Other assets and liabilities (12,014 ) (11,235 ) (10,395 ) (6,889 ) Net cash provided by operating activities 21,110 50,200 32,553 13,998 Cash flows from investing activities: Expenditures for property, plant and equipment (28,265 ) (33,495 ) (62,327 ) (68,883 ) Other investing activities (3,159 ) (2,317 ) (5,891 ) (3,736 ) Net cash used for investing activities (31,424 ) (35,812 ) (68,218 ) (72,619 ) Cash flows from financing activities: Borrowings from line of credit 113,000 73,000 231,500 257,500 Repayments of line of credit (88,000 ) (88,000 ) (186,500 ) (197,500 ) Principal payments of finance leases (244 ) (263 ) (491 ) (502 ) Dividend payments (4,290 ) (4,292 ) (8,580 ) (8,582 ) Purchase of treasury stock (51 ) (3,362 ) (1,537 ) (10,385 ) Issuance of common stock 1 1 155 427 Net cash provided by (used for) financing activities 20,416 (22,916 ) 34,547 40,958 Net change in cash and cash equivalents 10,102 (8,528 ) (1,118 ) (17,663 ) Cash and cash equivalents at beginning of period 8,344 20,633 19,564 29,768 Cash and cash equivalents at the end of period $ 18,446 $ 12,105 $ 18,446 $ 12,105 Supplemental non-cash investing activities: Capital expenditures included in accounts payable $ 14,762 $ 14,932 Expand AdvanSix Inc. Non-GAAP Measures (Dollars in thousands, except share and per share amounts) Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net cash provided by operating activities $ 21,110 $ 50,200 $ 32,553 $ 13,998 Expenditures for property, plant and equipment (28,265 ) (33,495 ) (62,327 ) (68,883 ) Free cash flow (1) $ (7,155 ) $ 16,705 $ (29,774 ) $ (54,885 ) (1) Free cash flow is a non-GAAP measure defined as Net cash provided by operating activities less Expenditures for property, plant and equipment. The Company believes that this metric is useful to investors and management as a measure to evaluate our ability to generate cash flow from business operations and the impact that this cash flow has on our liquidity. Expand Reconciliation of Net Income to Adjusted EBITDA and Earnings Per Share to Adjusted Earnings Per Share June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income $ 31,371 $ 38,927 $ 54,715 $ 21,531 Non-cash stock-based compensation 2,309 2,193 4,287 4,404 Non-recurring, unusual or extraordinary expense (2) — 1,200 — 1,200 Non-cash amortization from acquisitions 531 532 1,063 1,064 Non-recurring M&A costs — — — — Income tax benefit relating to reconciling items (479 ) (762 ) (909 ) (1,227 ) Adjusted Net income (non-GAAP) 33,732 42,090 59,156 26,972 Interest expense, net 2,255 3,514 3,796 6,213 Income tax expense - Adjusted 758 13,907 6,773 8,351 Depreciation and amortization - Adjusted 18,930 18,630 37,576 37,200 Adjusted EBITDA (non-GAAP) $ 55,675 $ 78,141 $ 107,301 $ 78,736 Sales $ 410,022 $ 453,479 $ 787,813 $ 790,308 (2) 2024 includes a pre-tax loss of approximately $1.2 million from the reduction of the Company's anticipated receivable related to the gain on the termination fee recorded upon the exit from the Oben Holding Group S.A. alliance during the third quarter of 2023 (3) Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Sales Expand Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income $ 31,371 $ 38,927 $ 54,715 $ 21,531 Adjusted Net income (non-GAAP) 33,732 42,090 59,156 26,972 Weighted-average number of common shares outstanding - basic 26,896,037 26,839,429 26,867,252 26,859,044 Dilutive effect of equity awards and other stock-based holdings 327,272 310,918 381,724 392,282 Weighted-average number of common shares outstanding - diluted 27,223,309 27,150,347 27,248,976 27,251,326 EPS - Basic $ 1.17 $ 1.45 $ 2.04 $ 0.80 EPS - Diluted $ 1.15 $ 1.43 $ 2.01 $ 0.79 Adjusted EPS - Basic (non-GAAP) $ 1.25 $ 1.57 $ 2.20 $ 1.00 Adjusted EPS - Diluted (non-GAAP) $ 1.24 $ 1.55 $ 2.17 $ 0.99 The Company believes the non-GAAP financial measures presented in this release provide meaningful supplemental information as they are used by the Company's management to evaluate the Company's operating performance, enhance a reader's understanding of the financial performance of the Company, and facilitate a better comparison among fiscal periods and performance relative to its competitors, as these non-GAAP measures exclude items that are not considered core to the Company's operations. Expand AdvanSix Inc. Appendix (Pre-tax income impact, Dollars in millions) Planned Plant Turnaround Schedule (4) 1Q 2Q 3Q 4Q FY Primary Unit Operation 2017 — ~$10 ~$4 ~$20 ~$34 Sulfuric Acid 2018 ~$2 ~$10 ~$30 — ~$42 Ammonia 2019 — ~$5 ~$5 ~$25 ~$35 Sulfuric Acid 2020 ~$2 ~$7 ~$20 ~$2 ~$31 Ammonia 2021 ~$3 ~$8 — ~$18 ~$29 Sulfuric Acid 2022 ~$1 ~$5 ~$44 (5) — ~$50 Ammonia 2023 ~$2 ~$1 ~$27 — ~$30 Sulfuric Acid 2024 ~$5 ~$3 ~$3 ~$47 (6) ~$58 Ammonia 2025E ~$5 ~$6 — $14-$19 $25-$30 Sulfuric Acid (4) Primarily reflects the impact of fixed cost absorption, maintenance expense, and the purchase of feedstocks which are normally manufactured by the Company. (5) During the multi-site planned plant turnaround, additional required maintenance at our Frankford phenol plant contributed to reduced production across our integrated value chain and a delayed ramp to full operating rates at our Hopewell and Chesterfield sites, resulting in an incremental $15 million unfavorable impact to pre-tax income, which is reflected in this amount and is inclusive of fixed cost absorption, higher maintenance expense and lost sales. (6) During the multi-site planned plant turnaround, additional required maintenance at our Hopewell plant contributed to reduced production across our integrated value chain and a delayed ramp to full operating rates, resulting in an incremental approximately $17 million unfavorable impact to pre-tax income, which is reflected in this amount and is inclusive of fixed cost absorption, higher maintenance expense, and lost sales. Expand
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- Business Wire
TELUS Digital reports second quarter 2025 results, with incremental improvement in revenue growth
VANCOUVER, British Columbia--(BUSINESS WIRE)--TELUS Digital Experience (TELUS Digital or the Company) (NYSE and TSX: TIXT), a leading global technology company specializing in digital customer experiences, today released its results for the three- and six-month periods ended June 30, 2025. TELUS Corporation (TSX: T, NYSE: TU) is the controlling shareholder of TELUS Digital. All figures in this news release, and elsewhere in TELUS Digital disclosures, are in U.S. dollars, unless specified otherwise, and relate only to TELUS Digital results and measures. 'In the second quarter of 2025, TELUS Digital delivered incremental improvement in its performance, with revenue increasing on a sequential quarter and a year-over-year basis, driven primarily by our existing client base, including TELUS,' said Jason Macdonnell, Acting Chief Executive Officer and Chief Operating Officer, TELUS Digital and President, Customer Experience. 'In our AI & Data Solutions service line in particular, we continue to diversify and expand our exposure across several key clients, all within our Top 10 cohort, on the back of a tailwind of generative AI large language models' development race among hyperscalers.' Tobias Dengel, President of TELUS Digital Solutions added, 'In Digital Solutions, we continue to lean into robust demand for cost optimization and efficiencies from automation, with good engagement seen across our existing client base in particular. At the same time, we secured several exciting net new client and expansion opportunities via our core competencies in digital experience and transformation. These drove year-over-year revenue growth in the second quarter and contributed to our sales funnel.' Gopi Chande, Chief Financial Officer said, 'With incremental improvement in our top-line growth, we remain vigilant in protecting our operating margins, which remain pressured due to the overall competitive pricing environment in our industry. We are reiterating our full-year outlook for 2025, balancing revenue upside seen year to date and our commitment to working through the pressures on our profitability margins.' Provided below are financial and operating highlights that include certain non-GAAP measures and ratios. See the Non-GAAP section of this news release for a discussion on such measures and ratios. Note, in the second quarter of 2025, the Company recorded an impairment of goodwill, please see the Goodwill impairment section below and refer to Note 11—Intangible assets and goodwill of our accompanying Financial Statements. Q2 2025 vs. Q2 2024 summary Revenue of $699 million, an increase of $47 million or 7% on a reported basis and 6% on a constant currency basis 1, primarily driven by growth in services provided to existing clients, including TELUS and certain social media clients, among others, and new clients added since the same period in the prior year, partially offset by lower revenues from certain technology and eCommerce clients. Revenue for the quarter reflected the non-recurring favorable impact of a certain contractual scope adjustment. Additionally, there was a favorable foreign currency impact of approximately 1% compared with the same quarter of the prior year, associated with the weakening U.S. dollar exchange rate against the euro. Net loss of $272 million and diluted EPS of $(0.98), compared with net loss of $3 million and diluted EPS of $(0.08), respectively, in the same quarter of the prior year, primarily due to a non-cash charge of $224 million related to the impairment of goodwill, as well as an increase in operating expenses outpacing revenue growth, and other income recognized in the comparative period arising from changes in business combination-related provisions that did not reoccur in the current period, partially offset by lower income taxes and interest expense. Net loss margin, calculated by dividing net loss by revenue for the period, was 38.9%, compared with 0.5% for the same quarter in the prior year. Net loss and diluted EPS include the impact of acquisition and integration charges, amortization of purchased intangible assets, goodwill impairment, and interest accretion on written put options, among other items. Adjusted Net Income 1, which excludes the impact of such items, was $16 million, compared with $46 million in the same quarter of the prior year, primarily due to higher salaries and benefits, goods and services purchased, as well as other income recognized in the comparative period arising from changes in business combination-related provisions that did not reoccur in the current period, which were partially offset by higher revenues earned, including the non-recurring favorable impact of a certain contractual scope adjustment, as well as lower income tax and interest expense. Adjusted EBITDA 1 was $94 million, compared with $130 million in the same quarter of the prior year, primarily due to the increases in salaries and benefits and goods and services purchased outpacing revenue growth, as well as other income generated in the prior year's comparative period from changes in business combination-related provisions. Adjusted EBITDA Margin 1 was 13.4%, compared with 19.9% in the same quarter of the prior year, due to the aforementioned factors. Adjusted Diluted EPS 1 was $0.06, compared with $0.16 in the same quarter of the prior year. Cash provided by operating activities was $63 million and Free Cash Flow 1 was $33 million, compared with $124 million and $95 million, respectively, in the same quarter of the prior year, primarily due to increases in operating expenses outpacing revenue growth and a negative non-cash impact in the quarter from foreign currency swaps due to stronger euro exchange against the U.S. dollar, and in the case of Free Cash Flow, reflecting higher capital expenditures due to incremental investments in site builds in Asia Pacific and Europe, as well as investments in our Digital Solutions service line. Net Debt to Adjusted EBITDA Leverage Ratio 1 as per our credit agreement was 3.75x as of June 30, 2025 compared with 3.40x as of March 31, 2025 and 3.20x as of December 31, 2024. The calculation of the ratio remains negatively impacted primarily by lower Adjusted EBITDA on a trailing twelve-month basis, in addition to a non-cash increase in derivative liabilities attributed to a stronger euro exchange against the U.S. dollar in the current quarter. As of June 30, 2025, the Company is in compliance with its Net Debt to Adjusted EBITDA financial covenant per its credit facility. Should our Net Debt to Adjusted EBITDA Leverage Ratio as per our credit agreement exceed the current covenant in future quarters, we may undertake a combination of measures, including requesting shareholder loan support from the parent company with terms that are compliant with the credit agreement or to seek a credit facility amendment. Team member count was 78,569 as of June 30, 2025, an increase of 5% year-over-year, resulting from the expansion of our service programs, particularly to meet the near-term client demand across the Americas and Asia Pacific regions, while also reflecting a workforce restructuring undertaken during the quarter in Europe. YTD Q2 2025 vs. YTD Q2 2024 summary Revenue of $1,369 million, an increase of $60 million or 5% year-over-year on a reported basis and on a constant currency basis, due to the same factors as outlined above in the quarterly section. Net loss of $297 million and diluted EPS of $(1.07), compared with net income of $25 million and diluted EPS of $(0.05), respectively, in the same period of the prior year, due to the same factors as outlined above. Net loss margin was 21.7%, compared with a net income margin 1.9% for the same period in the prior year. Adjusted Net Income was $33 million, compared with $111 million in the same period of the prior year, due to the same factors as outlined above. Adjusted EBITDA was $184 million, compared with $283 million in the same period of the prior year, due to the same factors as outlined above. Adjusted EBITDA Margin was 13.4%, compared with 21.6% in the same period of the prior year, due to the aforementioned factors. Adjusted Diluted EPS was $0.12, compared with $0.38 in the same period of the prior year. Cash provided by operating activities was $132 million and Free Cash Flow was $75 million, compared with $250 million and $199 million, respectively, in the same period of the prior year, reflecting the same factors as outlined above. Goodwill impairment As at June 30, 2025, we recorded a non-cash goodwill impairment charge of $224 million. This resulted from our goodwill impairment test, which determined that the Company's single cash-generating unit's carrying value exceeded its estimated fair value as of June 30, 2025. The recoverable amount was principally affected by changes in key valuation assumptions including higher weighted average cost of capital, lower perpetual growth rate and lower cash flow forecasts arising from pricing pressure on margins. Please refer to Note 11—Intangible assets and goodwill of our accompanying Financial Statements. A discussion of our results of operations is included in our Management's Discussion and Analysis for the three- and six-month periods ended June 30, 2025, which is filed on SEDAR+ and as Exhibit 99.2 to our Form 6-K filed on EDGAR. Such materials and additional information are also provided at Outlook For the full-year 2025, management continues to expect: Revenue growth of approximately 2% on an organic basis Adjusted EBITDA of approximately $400 million Adjusted Diluted EPS of approximately $0.32 Q2 2025 investor call TELUS Digital will host a conference call today, August 1, 2025 at 10:30 a.m. (ET) / 7:30 a.m. (PT), where management will review the second quarter results, followed by a question and answer session with pre-qualified analysts. A webcast of the conference call will be streamed live on the TELUS Digital Investor Relations website at: and a replay will also be available on the website following the conference call. Status of the TELUS proposal As previously announced, on June 11, 2025, TELUS Digital received an unsolicited non-binding proposal from TELUS Corporation to acquire 100% of the outstanding multiple voting shares and subordinate voting shares of TELUS Digital not already owned by TELUS Corporation (the Proposal). Subsequent to receiving the Proposal, TELUS Digital's board of directors formed a special committee comprised of six independent directors (the Special Committee) to review, evaluate and consider the Proposal. In addition, the Special Committee has announced the engagement of independent legal counsel, financial advisors, valuators and communications advisors. TELUS Digital does not have any further update on the Proposal. TELUS Digital cautions the Company's shareholders and others considering trading in TELUS Digital's securities that no decisions have been made with respect to the Proposal. There can be no assurance that any binding offer will be received, that any definitive agreement will be executed relating to the transaction contemplated by the Proposal, or that the transaction contemplated by the Proposal or any other similar transaction will be approved or consummated. Non-GAAP This news release includes non-GAAP financial information, with reconciliation to GAAP measures presented at the end of this news release. We report certain non-GAAP measures used in the management analysis of our performance, but these do not have standardized meanings under International Financial Reporting Standards, as issued by the International Accounting Standards Board (IFRS ® Accounting Standards). These non-GAAP financial measures and non-GAAP ratios may not be comparable to GAAP measures or ratios and may not be comparable to similarly titled non-GAAP financial measures or non-GAAP ratios reported by other companies, including those within our industry and TELUS Corporation, our controlling shareholder. Adjusted EBITDA, Adjusted Net Income, Free Cash Flow, revenue on a constant currency basis, and Net Debt are non-GAAP financial measures, while Adjusted EBITDA Margin, Adjusted Diluted EPS, revenue growth on a constant currency basis and Net Debt to Adjusted EBITDA Leverage Ratio are non-GAAP ratios. Adjusted EBITDA is commonly used by our industry peers and provides a measure for investors to compare and evaluate our relative operating performance. We use it to assess our ability to service existing and new debt facilities, and to fund accretive growth opportunities and acquisition targets. In addition, certain financial debt covenants associated with our credit facility, including Net Debt to Adjusted EBITDA Leverage Ratio, are based on Adjusted EBITDA, which requires us to monitor this non-GAAP financial measure in connection with our financial covenants. Adjusted EBITDA should not be considered an alternative to net income in measuring our financial performance, and it should not be used as a replacement measure of current and future operating cash flows. However, we believe a financial measure that presents net income adjusted for these items provides a more consistent measure for management to evaluate period-over-period performance and would enable an investor to better evaluate our underlying business trends, our operational performance and overall business strategy. We exclude items from Adjusted Net Income and Adjusted EBITDA, such as acquisition, integration and other, foreign exchange gains or losses and, additionally, with respect to Adjusted Net Income, the interest accretion on written put options, amortization of purchased intangible assets, and the related tax effect of these adjustments. Full reconciliations of Adjusted EBITDA and Adjusted Net Income to the comparable GAAP measures are included at the end of this news release. We calculate Free Cash Flow by deducting capital expenditures from our cash provided by operating activities, as we believe capital expenditures are a necessary ongoing cost to maintain our existing productive capital assets and support our organic business operations. We use Free Cash Flow to evaluate the cash flows generated from our ongoing business operations that can be used to meet our financial obligations, service debt facilities, reinvest in our business, and to fund, in part, potential future acquisitions. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by consolidated revenue. We regularly monitor Adjusted EBITDA Margin to evaluate our operating performance compared to established budgets, operational goals and the performance of industry peers. Adjusted Diluted EPS is used by management to assess the profitability of our business operations on a per share basis. We regularly monitor Adjusted Diluted EPS as it provides a more consistent measure for management and investors to evaluate our period-over-period operating performance, to better understand our ability to manage operating costs and to generate profits. Adjusted Diluted EPS is calculated by dividing Adjusted Net Income by the weighted average number of diluted equity shares outstanding during the period. Revenue on a constant currency basis is used by management to assess revenue, the most directly comparable GAAP measure, excluding the effect of foreign currency fluctuations. Revenue on a constant currency basis is calculated as current period revenue translated using average foreign exchange rates in the comparable prior period. Revenue growth on a constant currency basis is used by management to assess the growth of revenue, the most directly comparable GAAP measure, excluding the effect of foreign currency fluctuations. Revenue growth on a constant currency basis is calculated as current period revenue growth translated using average foreign exchange rates in the comparable prior period. Net Debt to Adjusted EBITDA Leverage Ratio as per our credit agreement is calculated based on Net Debt and Adjusted EBITDA, both as per our credit agreement. Over the long term, we seek to maintain a Net Debt to Adjusted EBITDA Leverage Ratio in the range of 2-3x. We may deviate from our target Net Debt to Adjusted EBITDA Leverage Ratio as per our credit agreement to pursue acquisitions and other strategic opportunities that may require us to borrow additional funds and, additionally, our ability to maintain this targeted ratio depends on our ability to continue to grow our business, general economic conditions, industry trends and other factors. We have not provided a quantitative reconciliation of our full-year 2025 outlook for Adjusted EBITDA and Adjusted Diluted EPS to our full-year 2025 outlook for net income and diluted EPS because we are unable, without making unreasonable efforts, to calculate certain reconciling items with confidence, which could materially affect the computation of these financial ratios and measures. Cautionary note regarding forward-looking statements This news release contains forward-looking statements concerning our business, operations and financial performance and condition, as well as our plans, objectives and expectations for our business operations and financial performance and condition. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as 'aim', 'anticipate', 'assume', 'believe', 'contemplate', 'continue', 'could', 'due', 'estimate', 'expect', 'goal', 'intend', 'may', 'objective', 'plan', 'predict', 'potential', 'positioned', 'seek', 'should', 'target', 'will', 'would' and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. These include, but are not limited to, statements and information regarding the proposal received by us from TELUS Corporation, including the terms and conditions of the proposal, TELUS Digital's review and evaluation of the proposal by the special committee. These forward-looking statements are based on our current expectations, estimates, forecasts and projections about our business and the industry in which we operate, and management's beliefs and assumptions, and are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors that are in some cases beyond our control. We assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, uncertainties or otherwise, except as required by law. Specifically, we made several assumptions underlying our financial outlook for the full-year 2025 results, including key assumptions in relation to: our ability to execute our growth strategy, including by expanding services offered to existing clients and attracting new clients; our ability to maintain the competitiveness of our service offerings and meet changing customer needs, including by continuing to invest in, develop and deploy new technologies and digital transformation capabilities; our ability to maintain our corporate culture and attract and retain talent; our ability to integrate, and realize the benefits of, acquisitions that align with our strategy and enhance our core capabilities and solutions; the relative growth rate and size of our target industry verticals; our projected operating and capital expenditure requirements; our ability to manage costs and adjust our cost structure as needed; and the impact of global conditions on our and our clients' businesses, including macroeconomic uncertainty, inflation, interest rates fluctuations and geopolitical conditions. Our financial outlook provides management's best judgement of how trends will impact the business and may not be appropriate for other purposes. Risk factors that may cause actual results to differ materially from current expectations include, among other things: We face intense competition from companies that offer services similar to ours. Our business and financial results have been and could be adversely affected by a number of global conditions and the effects of these same conditions on our clients' businesses and demand for our services. Because the majority of our costs is fixed in the short-term, we may experience a delay in our ability to immediately adjust our cost structure in response to prolonged lower client demand. A limited number of clients account for a significant portion of our revenue and loss of or reduction in business from, or consolidation of, these or any other major clients could have a material adverse effect on our business, financial condition, financial performance and prospects. Our ability to grow and maintain our profitability could be materially affected if changes in technology, including without limitation generative artificial intelligence (GenAI), and client expectations outpace our service offerings and the development of our internal tools and processes or if we are not able to meet the expectations of our clients. Our growth prospects are dependent upon attracting and retaining enough qualified team members to support our operations, and competition for talent is intense. If we cannot maintain our unique culture as we grow, our services, financial performance and business may be harmed. Our business could be adversely affected if we lose members of our senior management. We could be unable to successfully identify, complete, integrate and realize the benefits of acquisitions or manage the associated risks. The unauthorized disclosure of sensitive or confidential client and customer data, through cyberattacks or otherwise, could expose us to protracted and costly litigation, damage to reputation and cause us to lose clients / revenue. Our business may not develop in ways that we currently anticipate due to negative public reaction to offshore outsourcing, content moderation and proposed legislation or otherwise. Our policies, procedures and programs to safeguard the health, safety and security of our team members, particularly our content moderation team members, may not be adequate. Our business would be adversely affected if individuals providing data annotation services through AI Data Solutions were classified as employees (not as independent contractors). The dual-class structure contained in our articles has the effect of concentrating voting control and the ability to influence corporate matters with TELUS. TELUS will, for the foreseeable future, control the TELUS Digital board of directors. The market price of our subordinate voting shares may be affected by low trading volume and the market pricing for our subordinate voting shares may decline as a result of future sales, or the perception of the likelihood of future sales, by us or our shareholders in the public market. These risk factors, as well as other risk factors that may impact our business, financial condition and results of operation, are also described in our 'Risk Factors' section of our Annual Report available on SEDAR+ and in 'Item 3D—Risk Factors' of our Annual Report on Form 20-F filed on February 13, 2025, and available on EDGAR, as updated by our management's discussion and analysis for the three- and six-month periods ended June 30, 2025, which is filed on SEDAR+ and as Exhibit 99.2 to our Form 6-K filed on EDGAR. TELUS International (Cda) Inc. Condensed Interim Consolidated Statements of Financial Position (unaudited) As at (millions) December 31, 2024 ASSETS Current assets Cash and cash equivalents $ 151 $ 174 Accounts receivable 491 454 Due from affiliated companies 28 16 Income and other taxes receivable 18 8 Prepaid and other assets 65 42 Current portion of derivative assets 8 13 761 707 Non-current assets Property, plant and equipment, net 507 456 Intangible assets, net 1,344 1,379 Goodwill 1,789 1,926 Derivative assets — 15 Deferred income taxes 12 12 Other long-term assets 26 26 3,678 3,814 Total assets $ 4,439 $ 4,521 LIABILITIES AND OWNERS' EQUITY Current liabilities Accounts payable and accrued liabilities $ 356 $ 321 Due to affiliated companies 314 231 Income and other taxes payable 61 68 Current portion of provisions 49 7 Current maturities of long-term debt 126 116 Current portion of derivative liabilities 1 2 907 745 Non-current liabilities Provisions 114 139 Long-term debt 1,434 1,409 Derivative liabilities 38 — Deferred income taxes 220 256 Other long-term liabilities 32 27 1,838 1,831 Total liabilities 2,745 2,576 Owners' equity 1,694 1,945 Total liabilities and owners' equity $ 4,439 $ 4,521 Expand TELUS International (Cda) Inc. Condensed Interim Consolidated Statements of Cash Flows (unaudited) Three months Six months Periods ended June 30 (millions) 2025 2024 2025 2024 OPERATING ACTIVITIES Net (loss) income $ (272 ) $ (3 ) $ (297 ) $ 25 Adjustments: Depreciation, amortization and impairment of goodwill 310 79 391 158 Interest expense 34 36 64 71 Income tax (recovery) expense (35 ) 4 (35 ) 13 Share-based compensation 6 10 13 11 Changes in business combination-related provisions — (31 ) — (60 ) Change in market value of derivatives and other (44 ) 2 (54 ) (4 ) Net change in non-cash operating working capital 81 43 74 54 Income taxes paid, net (17 ) (16 ) (24 ) (18 ) Cash provided by operating activities 63 124 132 250 INVESTING ACTIVITIES Cash payments for capital assets (30 ) (29 ) (57 ) (51 ) Cash receipts from other assets — 1 — 1 Cash payments for acquisitions (1 ) — (1 ) (3 ) Cash used in investing activities (31 ) (28 ) (58 ) (53 ) FINANCING ACTIVITIES Shares issued 1 1 2 2 Withholding taxes paid related to net share settlement of equity awards (1 ) (1 ) (3 ) (3 ) Long-term debt issued 237 45 387 90 Repayment of long-term debt (241 ) (118 ) (452 ) (212 ) Interest paid on credit facilities (22 ) (24 ) (41 ) (48 ) Cash used in financing activities (26 ) (97 ) (107 ) (171 ) CASH POSITION Increase (decrease) in cash and cash equivalents 14 (2 ) (23 ) 25 Cash and cash equivalents, beginning of period 137 154 174 127 Cash and cash equivalents, end of period $ 151 $ 152 $ 151 $ 152 Expand Non-GAAP reconciliations (unaudited) Three Months Ended J une 30 Six Months Ended J une 30 (millions, except percentages) 2025 2024 2025 2024 Revenue, as reported $ 699 $ 652 $ 1,369 $ 1,309 Foreign exchange impact on current period revenue using prior comparative period's rates (7 ) 3 — — Revenue on a constant currency basis $ 692 $ 655 $ 1,369 $ 1,309 Revenue growth 7 % (2 )% 5 % (3 )% Revenue growth on a constant currency basis 6 % (2 )% 5 % (3 )% Expand Three Months Ended June 30 Six Months Ended June 30 (millions, except per share amounts) 2025 2024 2025 2024 Net (loss) income $ (272 ) $ (3 ) $ (297 ) $ 25 Add back (deduct): Acquisition, integration and other 50 9 56 16 Real estate rationalization-related impairments 3 — 3 — Amortization of purchased intangible assets and impairment of goodwill 267 43 310 85 Interest accretion on written put options 3 3 5 6 Foreign exchange loss 7 5 5 — Tax effect of the adjustments above (42 ) (11 ) (49 ) (21 ) Adjusted Net Income $ 16 $ 46 $ 33 $ 111 Adjusted Basic Earnings Per Share $ 0.06 $ 0.17 $ 0.12 $ 0.41 Adjusted Diluted Earnings Per Share $ 0.06 $ 0.16 $ 0.12 $ 0.38 Expand Three Months Ended June 30 Six Months Ended June 30 (millions, except percentages) 2025 2024 2025 2024 Net (loss) income $ (272 ) $ (3 ) $ (297 ) $ 25 Add back (deduct): Acquisition, integration and other 50 9 56 16 Depreciation and amortization and impairment of goodwill 310 79 391 158 Interest expense 34 36 64 71 Foreign exchange loss 7 5 5 — Income tax (recovery) expense (35 ) 4 (35 ) 13 Adjusted EBITDA $ 94 $ 130 $ 184 $ 283 Net (loss) income margin (38.9 )% (0.5 )% (21.7 )% 1.9 % Adjusted EBITDA Margin 13.4 % 19.9 % 13.4 % 21.6 % Expand Three Months Ended June 30 Six Months Ended June 30 (millions) 2025 2024 2025 2024 Cash provided by operating activities $ 63 $ 124 $ 132 $ 250 Less: capital expenditures (30 ) (29 ) (57 ) (51 ) Free Cash Flow $ 33 $ 95 $ 75 $ 199 Expand As at (millions, except for ratio) June 30, 2025 December 31, 2024 Outstanding credit facility $ 1,280 $ 1,284 Contingent facility utilization 7 7 Contingent liability related to M&A (cash component) 5 — Net derivative liabilities 29 2 Cash balance 1 (150 ) (150 ) Net Debt as per credit agreement $ 1,171 $ 1,143 Adjusted EBITDA (trailing 12 months) $ 382 $ 481 Adjustments required as per credit agreement $ (70 ) $ (124 ) Net Debt to Adjusted EBITDA Leverage Ratio as per credit agreement 3.75 3.20 Expand 1 Maximum cash balance permitted as a reduction to net debt, as per the credit agreement, is $150 million. Expand About TELUS Digital TELUS Digital (NYSE & TSX: TIXT) crafts unique and enduring experiences for customers and employees, and creates future-focused digital transformations that deliver value for our clients. We are the brand behind the brands. Our global team members are both passionate ambassadors of our clients' products and services, and technology experts resolute in our pursuit to elevate their end customer journeys, solve business challenges, mitigate risks, and drive continuous innovation. Our portfolio of end-to-end, integrated capabilities include customer experience management, digital solutions, such as cloud solutions, AI-fueled automation, front-end digital design and consulting services, AI & data solutions, including computer vision, and trust, safety and security services. Fuel iX TM is TELUS Digital's proprietary platform and suite of products for clients to manage, monitor, and maintain generative AI across the enterprise, offering both standardized AI capabilities and custom application development tools for creating tailored enterprise solutions. Powered by purpose, TELUS Digital leverages technology, human ingenuity and compassion to serve customers and create inclusive, thriving communities in the regions where we operate around the world. Guided by our Humanity-in-the-Loop principles, we take a responsible approach to the transformational technologies we develop and deploy by proactively considering and addressing the broader impacts of our work. Learn more at:
