ALASKA AIR GROUP, INC.
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 6, 2026
ALK$38.94+0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0000766421-26-000041
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0000766421-26-000049
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 124 previous paragraphs and 131 current paragraphs.
81 unchanged; 38 reworded; 12 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 20 previous and 20 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
THIRD QUARTER REVIEW
Current report
In September, we announced enhancements to Atmos Rewards, including greater flexibility in how members can earn points. Beginning in October, members can choose to earn points based on distance traveled, price paid, or segments flown, on flights departing on or after January 1, 2027. Additionally, we announced our intent to join the Atlantic and Pacific Joint International Businesses, which will increase global connectivity for our guests.
Current report
Subsequent to quarter end, we announced initiatives aimed at reducing our overhead expense, which are expected to drive approximately $100 million in savings in 2027. The initiatives included contractor and professional services reductions, as well as the implementation of a reduction in force that impacted approximately 200 employees. The initiatives were designed to preserve momentum on key strategic projects while reducing overhead spend. In connection with the reduction in force, we expect to incur approximately $11 million of costs, primarily related to severance and other employee termination benefits in the fourth quarter of 2026. These costs will be recognized within Special items - operating on the consolidated income statement.
Current report
Non-operating Expense
Current report
Non-operating expense increased $27 million, or 73%, primarily due to higher interest expense associated with elevated financing activity in 2026.
Current report
Income Tax Expense
Current report
In the third quarter of 2026, the Company revised its full-year outlook from a pretax income to a pretax loss primarily due to elevated fuel prices. This reduced the Company's AETR, which lowered the expected tax benefit associated with previously recorded losses. As required under the AETR methodology, the Company recorded a corresponding adjustment to income tax expense in the third quarter, including $151 million related to the first and second quarters of 2026.
Current report
COMPARISON OF NINE MONTHS ENDED SEPTEMBER 30, 2026 TO NINE MONTHS ENDED SEPTEMBER 30, 2025
Current report
Non-operating Expense
Current report
Non-operating expense increased $36 million, or 32%, primarily due to higher interest expense associated with elevated financing activity in 2026, partially offset by an increase to non-operating income associated with our qualified pension plans, details of which are disclosed within Note 5 to the condensed consolidated financial statements.
Current report
(a) For September 30, 2026, the Company is presenting its short-term EETC debt, maturing in the third quarter of 2027, within its debt-to-capitalization ratio. At December 31, 2025, this debt was included within Long-term debt and finance leases, net of current portion.
Current report
(b) 2028 activity reflects A330-200 contractual lease maturities.
Removed paragraphs (5)
Previous report
SECOND QUARTER REVIEW
Previous report
During the quarter, we achieved a significant integration milestone with the successful implementation of a single passenger service system, while continuing to execute our Alaska Accelerate initiatives. Additionally, we expanded the fleet with the delivery of six B737-8 aircraft at Alaska and two E175 aircraft at Horizon, and launched our first transatlantic routes from Seattle to Rome, London Heathrow, and Reykjavik.
Previous report
Subsequent to quarter-end, Alaska executed leases for four B737-800 freighter aircraft, to support the continued expansion of our cargo business in Alaska and Hawai'i. The aircraft are expected to enter service in the first half of 2027.
Previous report
COMPARISON OF SIX MONTHS ENDED JUNE 30, 2026 TO SIX MONTHS ENDED JUNE 30, 2025
Previous report
(b) Retirement of the B717-200 aircraft is expected to begin in 2028 as part of the planned transition of Neighbor Island operations to Boeing 737-800 aircraft.
Reworded paragraphs (38)
Previous wording
•Second Quarter Review - highlights from the second quarter of 2026 outlining some of the major events that occurred during the period.
Current wording
•Third Quarter Review - highlights from the third quarter of 2026 outlining some of the major events that occurred during the period.
Previous wording
•Results of Operations - an in-depth analysis of our financial and operational results for the three and six months ended June 30, 2026.
Current wording
•Results of Operations - an in-depth analysis of our financial and operational results for the three and nine months ended September 30, 2026.
Previous wording
We reported a $214 million loss before income tax under GAAP for the second quarter of 2026, compared to a $238 million profit for the second quarter of 2025. Refer below for a more detailed discussion of the items impacting these results.
Current wording
We reported $18 million of income before income tax under GAAP for the third quarter of 2026, compared to $111 million for the third quarter of 2025. Refer below for a more detailed discussion of the items impacting these results.
Previous wording
Second quarter results were adversely impacted by elevated fuel prices, which increased 85% year-over-year. However, a portion of the incremental fuel expense was offset by strong underlying demand trends that remained resilient throughout the quarter. Revenue increased 9.7% year-over-year, driven by an 8.6% increase in RASM, continued strength in our premium and loyalty products, managed corporate travel, and network optimization initiatives. CASMex increased 6.5%, reflecting higher labor and operating costs associated with continued growth, the absence of a $25 million gain recognized in the prior-year period from the sale of four B737-900 aircraft, and a one-time employee recognition award related to the successful implementation of a single passenger service system.
Current wording
Third quarter results were adversely impacted by elevated fuel costs, with per gallon fuel costs increasing 57% year over year. Strong underlying demand partially offset these pressures, as revenue increased 14.4% year-over-year, driven by an 11.7% increase in RASM. Revenue growth reflected demand for our premium and loyalty products, continued growth in managed corporate travel, and network optimization initiatives. CASMex increased 4.4%, reflecting higher labor and operating costs associated with continued growth, and a non-recurring gain of $32 million recognized in the prior-year period from the sale of eight B737-900 aircraft.
Previous wording
Total operating revenue increased by $524 million, or 8%. The changes are summarized in the following table.
Current wording
Total operating revenue increased $542 million, or 14%. The changes are summarized in the following table:
Previous wording
Passenger revenue increased by $289 million, or 9%, primarily driven by higher yields supported by increased premium revenue, loyalty program award redemption on our airlines, and managed corporate travel. Premium revenue reflected strong demand, the completion of cabin retrofits that added additional first and premium class seats, and additional revenue from newly launched transatlantic service from Seattle to Rome, London Heathrow, and Reykjavik. These increases were partially offset by softer demand in certain leisure markets, including Hawai'i, where significant rainfall earlier in the year impacted spring break and peak summer bookings in the second quarter.
Current wording
Passenger revenue increased by $461 million, or 13%, primarily driven by higher yields supported by broad based demand strength, increased premium revenue, and managed corporate travel. Growth in premium revenue was enabled by the completion of the B737 cabin retrofits, which added additional first and premium class seats, as well as additional revenue from scaling international service from Seattle. These increases were partially offset by softer demand in certain leisure markets, including Hawai'i, where significant rainfall and tropical storms impacted bookings and travel.
Previous wording
Loyalty program other revenue increased by $48 million, or 23%, primarily due to the launch of the Summit Visa Infinite premium credit card and the Atmos Rewards program in August 2025. The launch drove higher commission revenue from bank card and third-party partners, supported by growth in total active members and higher consumer spend. The increase also reflected continued benefits from the extension and expansion of Alaska's co-branded credit card agreement with Bank of America, executed in the first quarter of 2026.
Current wording
Loyalty program other revenue increased by $63 million, or 32%, primarily due to the launch of the Summit Visa Infinite premium credit card and the Atmos Rewards program in August 2025. The launch drove higher commission revenue from bank card and third-party partners, supported by growth in total active members and higher consumer spend. The increase also reflected continued benefits from the extension and expansion of Alaska's co-branded credit card agreement with Bank of America, executed in the first quarter of 2026.
Previous wording
Cargo and other revenue increased by $24 million, or 17%, primarily driven by improved economics under Alaska's ATSA with Amazon resulting from the amended agreement executed in the first quarter of 2026. Growth in international cargo volumes supported by expanded long-haul service and increased cargo connectivity across the combined network also contributed to the increase.
Current wording
Cargo and other revenue increased by $18 million, or 13%, primarily driven by improved economics under Alaska's ATSA with Amazon resulting from the amended agreement executed in the first quarter of 2026. Growth in international cargo volumes supported by expanded long-haul service and increased cargo connectivity across the combined network also contributed to the increase.
Previous wording
Total operating expenses increased by $806 million, or 24%. We believe it is useful to summarize operating expenses as follows, which is consistent with the way expenses are reported internally and evaluated by management:
Current wording
Total operating expenses increased by $608 million, or 17%. We believe it is useful to summarize operating expenses as follows, which is consistent with the way expenses are reported internally and evaluated by management:
Previous wording
Aircraft fuel expense increased $605 million, or 86%, due to higher per gallon fuel costs driven by elevated refining margins and crude oil prices.
Current wording
Aircraft fuel expense increased $453 million, or 60%, due to higher per gallon fuel costs driven by elevated refining margins and crude oil prices.
Previous wording
Wages and benefits increased by $74 million, or 6%. The primary components of Wages and benefits are shown in the following table:
Current wording
Wages and benefits increased by $61 million, or 5%. The primary components of Wages and benefits are shown in the following table:
Previous wording
Wages increased $39 million, or 4%, driven by higher wage rates across multiple labor groups. Payroll taxes increased due to higher wages and payroll tax expense associated with a one-time employee recognition award. Medical and other benefits increased $14 million, or 11%, driven by higher claim volume and large value claims.
Current wording
Wages increased $36 million, or 4%, driven by higher wage rates across multiple labor groups. Medical and other benefits increased $12 million, or 9%, driven by higher claim volume and large value claims.
Previous wording
Landing fees and other rentals increased by $27 million, or 10%, primarily driven by higher terminal rents resulting from rate increases and growth across the network. Landing fees increased primarily due to higher landed weights.
Current wording
Landing fees and other rentals increased by $28 million, or 9%, primarily driven by higher terminal rents resulting from rate increases and growth across the network. Landing fees increased primarily due to higher landed weights.
Previous wording
Selling expenses increased by $10 million, or 10%, primarily driven by higher credit card commissions and distribution costs associated with increased bookings and higher fares. The increase was partially offset by improved rates on credit card vendor rebates.
Current wording
Selling expenses increased by $11 million, or 10%, primarily driven by higher credit card commissions and distribution costs associated with increased bookings and higher fares, as well as increased marketing costs. The increase was partially offset by increased credit card vendor rebates, reflecting improved rates and increased consumer spending.
Previous wording
Other expense increased by $97 million, or 19%, due to a $25 million nonrecurring gain recognized in 2025 from the sale of four B737-900 aircraft, a $20 million one-time employee recognition award, and increased software costs.
Current wording
Other expense increased by $42 million, or 16%, primarily due to a $32 million nonrecurring gain recognized in 2025 from the sale of eight B737-900 aircraft, as well as increased software costs.
Previous wording
In the second quarter of 2026, we recorded $42 million of operating special items compared to $56 million in the same period in 2025. Refer to Note 10 to the condensed consolidated financial statements for details.
Current wording
In the third quarter of 2026, we recorded $25 million of operating special items compared to $64 million in the same period in 2025. Refer to Note 10 to the condensed consolidated financial statements for details.
Previous wording
Total operating revenue increased $361 million, or 10%. The changes are summarized in the following table:
Current wording
Total operating revenue increased by $1,066 million, or 10%. The changes are summarized in the following table.
Previous wording
The table below presents total operating revenue by principal geographic region (as defined by the U.S. Department of Transportation) and the percentage of change of certain operational results for the six months ended June 30, 2026.
Current wording
The table below presents total operating revenue by principal geographic region (as defined by the U.S. Department of Transportation) and the percentage of change of certain operational results for the nine months ended September 30, 2026.
Previous wording
Passenger revenue increased by $401 million, or 7%, primarily driven by higher yields supported by increased premium revenue, loyalty program award redemption on our airlines, and managed corporate travel. Premium revenue reflected strong demand, the completion of cabin retrofits that added additional first and premium class seats, and additional revenue from newly launched transatlantic service from Seattle to Rome, London Heathrow, and Reykjavik. These increases were partially offset by softer demand in certain leisure markets, including Puerto Vallarta and Hawai'i, during spring break and peak summer travel in 2026.
Current wording
Passenger revenue increased by $862 million, or 9%, primarily driven by higher yields supported by broad based demand strength, increased premium revenue, and managed corporate travel. Growth in premium revenue was enabled by the completion of the B737 cabin retrofits, which added additional first and premium class seats, as well as additional revenue from scaling international service from Seattle. These increases were partially offset by softer demand in certain leisure markets during spring break and summer travel, driven by civil unrest in Puerto Vallarta and historic rainstorms in Hawai'i.
Previous wording
Loyalty program other revenue increased by $68 million, or 16%, primarily due to the launch of the Summit Visa Infinite premium credit card and the Atmos Rewards program in August 2025. The launch drove higher commission revenue from bank card and third-party partners, supported by growth in total active members and higher consumer spend. In addition, Alaska extended and expanded its co-branded credit card agreement with Bank of America in 2026, which also contributed to the increase.
Current wording
Loyalty program other revenue increased by $131 million, or 21%, primarily due to the launch of the Summit Visa Infinite premium credit card and the Atmos Rewards program in August 2025. The launch drove higher commission revenue from bank card and third-party partners, supported by growth in total active members and higher consumer spend. In addition, Alaska extended and expanded its co-branded credit card agreement with Bank of America in 2026, which also contributed to the increase.
Previous wording
Cargo and other revenue increased by $55 million, or 21%, primarily driven by improved economics under Alaska's ATSA with Amazon resulting from the amended agreement executed in 2026. Growth in international cargo volumes supported by expanded long-haul service and increased cargo connectivity across the combined network also contributed to the increase.
Current wording
Cargo and other revenue increased by $73 million, or 18%, primarily driven by improved economics under Alaska's ATSA with Amazon resulting from the amended agreement executed in 2026. Growth in international cargo volumes supported by expanded long-haul service and increased cargo connectivity across the combined network also contributed to the increase.
Previous wording
Total operating expenses increased by $1.1 billion, or 16%. We believe it is useful to summarize operating expenses as follows, which is consistent with the way expenses are reported internally and evaluated by management:
Current wording
Total operating expenses increased by $1.7 billion, or 16%. We believe it is useful to summarize operating expenses as follows, which is consistent with the way expenses are reported internally and evaluated by management:
Previous wording
Aircraft fuel expense increased by $720 million, or 52%, due to higher per gallon fuel costs driven by elevated refining margins and crude oil prices. The elements of the change are illustrated in the table:
Current wording
Aircraft fuel expense increased by $1.2 billion, or 55%, due to higher per gallon fuel costs driven by elevated refining margins and crude oil prices. The elements of the change are illustrated in the table:
Previous wording
Wages and benefits increased by $189 million, or 8%. The primary components of wages and benefits are shown in the following table:
Current wording
Wages and benefits increased by $250 million, or 7%. The primary components of wages and benefits are shown in the following table:
Previous wording
Wages increased by $121 million, or 7%, driven by higher wage rates across multiple labor groups. Payroll taxes increased due to higher wages and payroll tax expense associated with a one-time employee recognition award. Medical and other benefits increased $38 million, or 15%, driven by higher claim volume and large value claims. Defined contribution plans increased $16 million, or 9%, consistent with wage increases.
Current wording
Wages increased by $157 million, or 6%, driven by higher wage rates across multiple labor groups. Payroll taxes increased due to higher wages and payroll tax expense associated with a one-time employee recognition award. Medical and other benefits increased $50 million, or 13%, driven by higher claim volume and large value claims. Defined contribution plans increased $23 million, or 9%, consistent with wage increases.
Previous wording
Variable incentive pay decreased by $28 million, or 23%, primarily driven by a lower expected payout under the Company's Performance-Based Pay program, reflecting lower profitability driven by elevated fuel prices in the first half of 2026. The decrease was also due to a pause in the Company's Operational Performance Rewards program for 2026. These effects were partially offset by a higher wage base in 2026.
Current wording
Variable incentive pay decreased by $31 million, or 16%, primarily driven by a lower expected payout under the Company's Performance-Based Pay program, reflecting lower profitability driven by elevated fuel prices in 2026. The decrease was also due to a pause in the Company's Operational Performance Rewards program for 2026. These effects were partially offset by a higher wage base in 2026.
Previous wording
Landing fees and other rentals increased by $76 million, or 15%, primarily driven by higher terminal rents resulting from rate increases and growth across the network. Landing fees increased primarily due to higher landed weights. Nonrecurring favorable settlements received from certain airports in 2025 also contributed to the year-over-year increase.
Current wording
Landing fees and other rentals increased by $104 million, or 13%, primarily driven by higher terminal rents resulting from rate increases and growth across the network. Landing fees increased primarily due to higher landed weights. Nonrecurring favorable settlements received from certain airports in 2025 also contributed to the year-over-year increase.
Previous wording
Food and beverage service increased by $20 million, or 11%, driven by additional onboard offerings and higher costs for food, food service supplies, and transportation.
Current wording
Food and beverage service increased by $30 million, or 11%, driven by additional onboard offerings and higher costs for food, food service supplies, and transportation.
Previous wording
Other expense increased by $55 million, or 22%, due to a $25 million nonrecurring gain recognized in 2025 from the sale of four B737-900 aircraft, a $20 million one-time employee recognition award, and increased software costs.
Current wording
Other expense increased by $139 million, or 18%, due to a $57 million nonrecurring gain recognized in 2025 from the sale of twelve B737-900 aircraft, a $20 million one-time employee recognition award in 2026, and increased software costs.
Previous wording
In the first six months of 2026, we recorded $77 million of operating special items, compared to $147 million in the same period in 2025. Refer to Note 10 to the consolidated financial statements for details.
Current wording
In the first nine months of 2026, we recorded $102 million of operating special items, compared to $211 million in the same period in 2025. Refer to Note 10 to the consolidated financial statements for details.
Previous wording
As of June 30, 2026, we held $3.8 billion in available liquidity, including unrestricted cash, marketable securities, and an undrawn credit facility. In the first six months of 2026, the Company obtained approximately $1.1 billion in new financing and exercised the accordion feature of its revolving credit facility, increasing the aggregate commitment amount from $850 million to $1.1 billion. As of June 30, 2026, we also had approximately $20 billion of unencumbered assets, including 131 aircraft and the unencumbered portion of our loyalty program assets. We expect our current unrestricted cash and marketable securities balance, combined with our available sources of liquidity, to be sufficient to fund our liquidity needs for the next 12 months. We expect to meet our liquidity needs for the foreseeable future using cash flows from our operations, our available sources of liquidity, and future financing arrangements. We discuss our sources and uses of cash in more detail below.
Current wording
As of September 30, 2026, we held $3.3 billion in available liquidity, including unrestricted cash, marketable securities, and an undrawn credit facility. In the first nine months of 2026, the Company obtained approximately $1.2 billion in new financing, including non-cash financing of $72 million related to E175 deliveries, and exercised the accordion feature of its revolving credit facility, increasing the aggregate commitment amount from $850 million to $1.1 billion. As of September 30, 2026, we also had approximately $20 billion of unencumbered assets, including 134 aircraft and the unencumbered portion of our loyalty program assets. We expect our current unrestricted cash and marketable securities balance, combined with our available sources of liquidity, to be sufficient to fund our liquidity needs for the next 12 months. We expect to meet our liquidity needs for the foreseeable future using cash flows from our operations, our available sources of liquidity, and future financing arrangements. We discuss our sources and uses of cash in more detail below.
Previous wording
Cash provided by operating activities was $606 million during the first six months of 2026, compared to $835 million during the first six months of 2025. The $229 million decrease was primarily driven by higher fuel prices throughout the year, partially offset by increased cash collected from advance ticket sales and other favorable working capital changes.
Current wording
Cash provided by operating activities was $755 million during the first nine months of 2026, compared to $1.1 billion during the first nine months of 2025. The $309 million decrease was primarily driven by higher fuel prices throughout the year, partially offset by increased cash collected from advance ticket sales and other favorable working capital changes.
Previous wording
Capital expenditures to acquire aircraft, flight equipment, and other property and equipment are the primary use of our investing cash flow. In 2026, we plan to incur approximately $1.4 billion to $1.5 billion in capital expenditures. We discuss our aircraft-related commitments in more detail below.
Current wording
Capital expenditures to acquire aircraft, flight equipment, and other property and equipment are the primary use of our investing cash flow. In 2026, we plan to incur approximately $1.6 billion in capital expenditures. We discuss our aircraft-related commitments in more detail below.
Previous wording
Cash used in investing activities was $635 million during the first six months of 2026, compared to $747 million during the first six months of 2025. The $112 million decrease in cash used was primarily driven by $218 million in reduced property and equipment expenditures, due to fewer aircraft deliveries in 2026 and the schedule of Alaska's advance deposit payments with Boeing. This activity was partially offset by $32 million in incremental cash outflows related to marketable securities activity and proceeds of $53 million in 2025 from the sale of four B737-900 aircraft.
Current wording
Cash used in investing activities was $892 million during the first nine months of 2026, compared to $996 million during the first nine months of 2025. Property and equipment expenditures were flat year-over-year. The $104 million decrease in cash used was primarily driven by net cash inflows from marketable securities activity of $76 million in 2026 compared to net cash outflows of $192 million in 2025. This activity was partially offset by other investing cash inflows of $159 million in 2025, which includes proceeds from the sale of twelve B737-900 aircraft.
Previous wording
Cash provided by financing activities was $472 million during the first six months of 2026, compared to cash used in financing activities of $544 million during the first six months of 2025. The $1.0 billion increase was primarily attributable to $1.1 billion of proceeds from new financing agreements and $285 million in reduced share repurchases, partially offset by $169 million in incremental debt repayments.
Current wording
Cash provided by financing activities was $367 million during the first nine months of 2026, compared to cash used in financing activities of $490 million during the first nine months of 2025. The $857 million increase was primarily attributable to $720 million in increased proceeds from new financing agreements and $290 million in reduced share repurchases, partially offset by $122 million in incremental debt repayments.
Previous wording
As of June 30, 2026, Alaska had firm orders to purchase 168 B737 aircraft with deliveries expected between 2027 and 2035, and firm orders to purchase 12 B787 aircraft with deliveries expected between 2026 and 2032. Alaska also had rights for 71 additional B737 aircraft through 2035. Horizon had a firm order to purchase one E175 aircraft with delivery in 2026. Subsequent to the quarter, Alaska executed lease agreements for four B737-800 freighters, with deliveries in 2026.
Current wording
As of September 30, 2026, Alaska had firm orders to purchase 168 B737 aircraft with deliveries expected between 2027 and 2035, and firm orders to purchase 12 B787 aircraft with deliveries expected between 2026 and 2032. Alaska also had rights for 71 additional B737 aircraft through 2035.
Previous wording
Boeing continues to experience aircraft delivery delays attributable to supplier availability, production challenges, and regulatory approval processes. These factors represent known uncertainties that may continue to affect the timing of aircraft deliveries. The table below reflects Boeing’s most recent communications and management’s current estimates.
Current wording
Boeing continues to experience aircraft delivery delays attributable to supplier availability and production challenges. These factors represent known uncertainties that may continue to affect the timing of aircraft deliveries. The table below reflects Boeing’s most recent communications and management’s current estimates.
Previous wording
There have been no material changes to our critical accounting estimates during the three and six months ended June 30, 2026. For information regarding our critical accounting estimates, see Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended December 31, 2025.
Current wording
There have been no material changes to our critical accounting estimates during the three and nine months ended September 30, 2026. For information regarding our critical accounting estimates, see Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended December 31, 2025.