AMERICAN SUPERCONDUCTOR CORP /DE/

Previous wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For this purpose, any statements contained herein that relate to future events or conditions, including without limitation, the statements in Part II, “Item 1A. Risk Factors” and in Part I under “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and located elsewhere herein regarding industry prospects, our addressable markets, our competitive position, macroeconomic conditions and their anticipated effect on our business, the benefits of our acquisitions, financial results and financial condition, expectations for when our products become operational, capabilities and potential uses of our products, steps taken to enhance liquidity, or our prospective results of operations or financial position, may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements represent management’s current expectations and are inherently uncertain. There are a number of important factors that could materially impact the value of our common stock or cause actual results to differ materially from those indicated by such forward-looking statements. These important factors include, but are not limited to: We have not been historically profitable, which may recur in the future. Our operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal quarter; While we generated positive operating cash flow in fiscal 2024 and the prior year, we have a history of negative operating cash flows, and we may require additional financing in the future, which may not be available to us; Our technology and products could infringe intellectual property rights of others, which may require costly litigation and, if we are not successful, could cause us to pay substantial damages and disrupt our business; Changes in exchange rates could adversely affect our results of operations; If we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other users to lose confidence in our financial data; We may be required to issue performance bonds, which restricts our ability to access any cash used as collateral for the bonds; We may not realize all of the sales expected from our backlog of orders and contracts; If we fail to implement our business strategy successfully, our financial performance could be harmed; We rely upon third-party suppliers for the components and subassemblies of many of our Grid and Wind products, making us vulnerable to supply shortages and price fluctuations, which could harm o…

Excerpt shortened here; the source contains the full paragraph.

Current wording

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). For this purpose, any statements contained herein that relate to future events or conditions, including without limitation, the statements in Part II, “Item 1A. Risk Factors” and in Part I under “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and located elsewhere herein regarding industry prospects, our addressable markets, our competitive position, macroeconomic conditions and their anticipated effect on our business, the benefits of our acquisitions, financial results and financial condition, expectations for our products, capabilities and potential uses of our products, steps taken to enhance liquidity, or our prospective results of operations or financial position, may be deemed to be forward-looking statements. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements represent management’s current expectations and are inherently uncertain. There are a number of important factors that could materially impact the value of our common stock or cause actual results to differ materially from those indicated by such forward-looking statements. These important factors include, but are not limited to: We have not been historically profitable, which may recur in the future. Our operating results may fluctuate significantly from quarter to quarter and may fall below expectations in any particular fiscal quarter; While we generated positive operating cash flow in fiscal 2024 and the prior year, we have a history of negative operating cash flows, and we may require additional financing in the future, which may not be available to us; Our technology and products could infringe intellectual property rights of others, which may require costly litigation and, if we are not successful, could cause us to pay substantial damages and disrupt our business; Changes in exchange rates could adversely affect our results of operations; If we fail to maintain proper and effective internal control over financial reporting, our ability to produce accurate and timely financial statements could be impaired and may lead investors and other users to lose confidence in our financial data; We may be required to issue performance bonds, which restricts our ability to access any cash used as collateral for the bonds; We may not realize all of the sales expected from our backlog of orders and contracts; If we fail to implement our business strategy successfully, our financial performance could be harmed; We rely upon third-party suppliers for the components and subassemblies of many of our Grid and Wind products, making us vulnerable to supply shortages and price fluctuations, which could harm our business; Our contrac…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

Changes in macroeconomic conditions arising from various reasons, such as the ongoing wars between Russia and Ukraine and Israel and Hamas, tariffs, trade restrictions and resulting trade conflicts, labor force availability, sourcing, material delays and global supply chain disruptions, could have a material adverse effect on our business, financial condition and results of operations.

Current wording

Changes in macroeconomic conditions arising from various reasons, such as the ongoing war between Russia and Ukraine, tariffs, trade restrictions and resulting trade conflicts, labor force availability, sourcing, material delays and global supply chain disruptions, could have a material adverse effect on our business, financial condition and results of operations.

Previous wording

Total revenues increased 80% to $72.4 million for the three months ended June 30, 2025, compared to $40.3 million for the three months ended June 30, 2024. Our revenues are summarized as follows (in thousands):

Current wording

Total revenues increased 21% to $65.9 million for the three months ended September 30, 2025 and total revenues increased 46% to $138.2 million for the six months ended September 30, 2025 compared to $54.5 million and $94.8 for the three and six months ended September 30, 2024, respectively. Our revenues are summarized as follows (in thousands):

Previous wording

Our Grid business segment accounted for 83% of total revenues for the three months ended June 30, 2025, comparedto 80% forthe three months ended June 30, 2024. Our Grid business segment revenues increased 86% to $60.1 million in the three months ended June 30, 2025, from $32.3 million in the three months ended June 30, 2024. The increase in the Grid business segment revenues in the three months ended June 30, 2025, compared to the three months ended June 30, 2024 was primarily driven by the acquisition of NWL and increased shipments of new energy power systems than in the prior year period.

Current wording

Our Grid business segment accounted for 83% of total revenues for both the three and six months ended September 30, 2025, comparedto 86% and 84% forthe three and six months ended September 30, 2024, respectively. Our Grid business segment revenues increased 16% to $54.3 million in the three months ended September 30, 2025, from $46.9 million in the three months ended September 30, 2024. Our Grid business segment revenues increased 44% to $114.4 million in the six months ended September 30, 2025, from $79.3 million in the six months ended September 30, 2024. The increase in the Grid business segment revenues in the three and six months ended September 30, 2025, compared to the three and six months ended September 30, 2024 was driven by the acquisition of NWL, increased shipments of new energy power systems, and additional ship protection systems revenues than in the prior year periods.

Previous wording

Our Wind business segment accounted for 17% of total revenues for the three months ended June 30, 2025, comparedto 20% for the three months ended June 30, 2024. Revenues in the Wind business segment increased 54% to $12.3 million in the three months ended June 30, 2025, from $8.0 million in the three months ended June 30, 2024. The increase during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was driven by additional shipments of electrical control systems ("ECS").

Current wording

Our Wind business segment accounted for 17% of total revenues for both the three and six months ended September 30, 2025, comparedto 14% and 16% for the three and six months ended September 30, 2024, respectively. Revenues in the Wind business segment increased 53% to $11.5 million in the three months ended September 30, 2025, from $7.5 million in the three months ended September 30, 2024. Revenues in the Wind business segment increased 54% to $23.8 million in the six months ended September 30, 2025, from $15.5 million in the six months ended September 30, 2024. The increase during the three and six months ended September 30, 2025, compared to the three and six months ended September 30, 2024, was driven by additional shipments of electrical control systems ("ECS").

Previous wording

Cost of revenues increased by 71% to $47.9 million for the three months ended June 30, 2025, compared to $28.1 million for the three months ended June 30, 2024. Gross margin was 34% for thethree months ended June 30, 2025, compared to 30% for thethree months ended June 30, 2024. The increase in gross margin in the three months ended June 30, 2025 was due to higher revenues, a favorable product mix and favorable impacts across the business due to pricing increases across our product lines.

Current wording

Cost of revenues increased by 17% to $45.4 million for the three months ended September 30, 2025, compared to $38.9 million for the three months ended September 30, 2024. Cost of revenues increased by 39% to $93.3 million for thesix months ended September 30, 2025, compared to $66.9 million for thesix months ended September 30, 2024. Gross margin was 31% and 33% for thethree and six months ended September 30, 2025, respectively, compared to 29% for both thethree and six months ended September 30, 2024. The increase in gross margin in the three and six months ended September 30, 2025 was due to higher revenues, a favorable product mix and favorable impacts across the business due to pricing increases across our product lines.

Previous wording

Research and development ("R&D") expenses increased 88% in the three months ended June 30, 2025, to $4.3 million from $2.3 million in the three months ended June 30, 2024. The increasein thethree months ended June 30, 2025 was driven primarily by the addition of NWL R&D expenses, higher overall compensation expense and additional stock-based compensation expense.

Current wording

Research and development ("R&D") expenses increased 41% in the three months ended September 30, 2025, to $3.7 million from $2.6 million in the three months ended September 30, 2024. R&D expenses increased 63% in thesix months ended September 30, 2025, to $8.0 million from $4.9 million in thesix months ended September 30, 2024. The increasein thethree and six months ended September 30, 2025 was driven primarily by the addition of NWL R&D expenses, higher overall compensation expense and additional stock-based compensation expense.

Previous wording

Selling, general and administrative ("SG&A") expenses increased 60% in the three months ended June 30, 2025, to $14.2 million from $8.9 million in the three months ended June 30, 2024. The increase in SG&A expense in the three months ended June 30, 2025 was driven primarily by the addition of NWL SG&A expenses, higher overall compensation expense and additional stock-based compensation expense.

Current wording

Selling, general and administrative ("SG&A") expenses increased 27% in the three months ended September 30, 2025, to $13.4 million from $10.5 million in the three ended September 30, 2024. SG&A expenses increased 42% in thesix months ended September 30, 2025, to $27.6 million from $19.4 million in thesix months ended September 30, 2024. The increase in SG&A expense in thethree and six months ended September 30, 2025 was driven primarily by the addition of NWL SG&A expenses, higher overall compensation expense and additional stock-based compensation expense.

Previous wording

We recorded amortization expense related to our core technology and know-how and customer relationships of $0.3 million in the three months ended June 30, 2025, and $0.4 million in the three months ended June 30, 2024. The decrease in amortization expense is a result of using the economic consumption method as the basis to amortize the acquired customer relationship intangible assets from Northeast Power Systems, Inc. ("NEPSI") and Neeltran, Inc.

Current wording

We recorded amortization expense related to our core technology and know-how and customer relationships of $0.3 million in the three months ended September 30, 2025, and $0.4 million in the three months ended September 30, 2024. We recorded amortization expense related to our core technology and know-how and customer relationships of $0.7 million in thesix months ended September 30, 2025, and $0.8 million in thesix months ended September 30, 2024. The decrease in amortization expense in thethree and six months ended September 30, 2025 is a result of using the economic consumption method as the basis to amortize the acquired customer relationship intangible assets from Northeast Power Systems, Inc. ("NEPSI") and Neeltran, Inc.

Previous wording

The change in fair value of our contingent consideration for the earnout payment on the acquisition of NEPSI resulted ina loss of $3.9 million in the three months ended June 30, 2024 driven from an increase in fair value. There was no activity inthe three months ended June 30, 2025 as the contingent consideration was settled during the prior fiscal year.

Current wording

The change in fair value of our contingent consideration for the earnout payment on the acquisition of NEPSI resulted in a gain of $0.5 million from a decrease in fair value and a loss of $3.4 million resulting from an increase in fair value in the three and six months ended September 30, 2024, respectively. During the three and six months ended September 30, 2024, we issued 300,000 shares of common stock of the Company to the selling stockholders following certification of the achievement of specified earnout revenue objectives. There was no activity inthe three and six months ended September 30, 2025 as the contingent consideration was settled during the prior fiscal year.

Previous wording

Our Grid business segment generated operating income of $4.2 million in thethree months ended June 30, 2025, compared to an operating loss of $0.2 million in thethree months ended June 30, 2024. The improvement in the Grid business segment operating income in the three months ended June 30, 2025 was due to higher revenues and gross margins.

Current wording

Our Grid business segment generated operating income of $1.3 million and $5.4 million in thethree and six months ended September 30, 2025, respectively, compared to an operating income of $1.6 million and $1.3 million in thethree and six months ended September 30, 2024, respectively. The decrease in the Grid business segment operating income in the three months ended September 30, 2025 was due tohigher overall compensation expense and higher stock comp expense. The improvement in the Grid business segment operating income in the six months ended September 30, 2025 was due to higher revenues and gross margins.

Previous wording

Our Wind business segment generated operating income of $1.5 million in thethree months ended June 30, 2025, compared to operating income of $0.9 million in thethree months ended June 30, 2024. The increase in the Wind business segment operating income in the three months ended June 30, 2025 was due to higher revenues and gross margins from increased sales of ECS units.

Current wording

Our Wind business segment generated operating income of $1.7 million and $3.2 million in thethree and six months ended September 30, 2025, respectively, compared to operating income of $0.4 million and $1.3 million in thethree and six months ended September 30, 2024, respectively. The increase in the Wind business segment operating income in the three and six months ended September 30, 2025 was due to higher revenues and gross margins from increased sales of ECS units.

Previous wording

Unallocated corporate expenses included anet loss on contingent consideration of $3.9 million in the three months ended June 30, 2024.

Current wording

Unallocated corporate expenses included anet loss on contingent consideration of $2.8 million and $6.7 million in the three and six months ended September 30, 2024, respectively.

Previous wording

Interest income, net, was $0.9 million in the three months ended June 30, 2025, compared to $1.1 million in the three months ended June 30, 2024. The decrease in interest income, net, in the three months ended June 30, 2025 was due to lower interest rates.

Current wording

Interest income, net, was $2.3 million and $3.2 million in the three and six months ended September 30, 2025, respectively, compared to $1.0 million and $2.1 million in the three and six months ended September 30, 2024, respectively. The increase in interest income, net, in the three and six months ended September 30, 2025 was due tohigher cash balances primarily generated from the public offering completed in June 2025.

Previous wording

Other income, net, was $0.3 million in thethree months ended June 30, 2025, compared to other expense, net of $0.2 million in the three months ended June 30, 2024. The improvement in other income, net, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was driven by the impacts of favorable fluctuations in foreign currencies and gain on earnings from our NWL Pacific joint venture during the periods.

Current wording

Other expense, net, was $0.4 million and less than $0.1 million in thethree and six months ended September 30, 2025, respectively, compared to $0.3 million and $0.5 million in the three and six months ended September 30, 2024, respectively. The increase in other expense, net, during the three months ended September 30, 2025, compared to the three months ended September 30, 2024 was driven by unfavorable fluctuations in foreign currencies. The improvement in other expense, net, during the six months ended September 30, 2025, compared to the six months ended September 30, 2024, was driven by the impacts of favorable fluctuations in foreign currencies and gain on earnings from our NWL Pacific joint venture during the periods.

Previous wording

We define non-GAAP net income as net income (loss) before stock-based compensation, amortization of acquisition-related intangibles, change in fair value of contingent consideration, and other non-cash or unusual charges. We believe non-GAAP netincome assists management and investors in comparing our performance across reporting periods on a consistent basis by excluding these non-cash charges and other items that we do not believe are indicative of our core operating performance. In addition, we use non-GAAP netincome as a factor to evaluate the effectiveness of our business strategies. A reconciliation of GAAP to non-GAAP netincome is set forth in the table below (in thousands, except per share data):

Current wording

We define non-GAAP net income as net income before stock-based compensation, acquisition costs, amortization of acquisition-related intangibles, change in fair value of contingent consideration, and other non-cash or unusual charges. We believe non-GAAP netincome assists management and investors in comparing our performance across reporting periods on a consistent basis by excluding these non-cash charges and other items that we do not believe are indicative of our core operating performance. In addition, we use non-GAAP netincome as a factor to evaluate the effectiveness of our business strategies. A reconciliation of GAAP to non-GAAP netincome is set forth in the table below (in thousands, except per share data):

Previous wording

We generated non-GAAP net income of $11.6 million, or $0.30 per share, for thethree months ended June 30, 2025, compared to a non-GAAP net income of $3.0 million, or $0.09 per share, for thethree months ended June 30, 2024. The improvement in the non-GAAP net income for the three months ended June 30, 2025 was due to higher revenues and gross margins.

Current wording

We generated non-GAAP net income of $8.9 million and $20.4 million, or $0.20 and $0.50 per share, for thethree and six months ended September 30, 2025, respectively, compared to a non-GAAP net income of $10.0 million and $13.2 million, or $0.27 and $0.36 per share, for thethree and six months ended September 30, 2024, respectively. For the three months ended September 30, 2025, the decrease in non-GAAP net income was a result of the release of the valuation allowance due to the recording of the deferred tax liability from the acquisition of Megatran in the prior year, partially offset by higher revenues and gross margins. The improvement in the non-GAAP net income for the six months ended September 30, 2025, was due to higher revenues and gross margins.

Previous wording

The Company’s primary sources of liquidity are internally generated cash provided by operating activities, our cash and cash equivalents on hand, along with access to capital markets, including through our currently effective Registration Statements on Form S-3. We believe that these sources of liquidity are sufficient to meet both our short-term and reasonably foreseeable long-term requirements and obligations. As of** **June 30, 2025, we had cash and cash equivalents of $207.9 million.

Current wording

The Company’s primary sources of liquidity are internally generated cash provided by operating activities, our cash and cash equivalents on hand, along with access to capital markets, including through our currently effective Registration Statements on Form S-3. We believe that these sources of liquidity are sufficient to meet both our short-term and reasonably foreseeable long-term requirements and obligations. As of** **September 30, 2025, we had cash and cash equivalents of $212.9 million.

Previous wording

As of June 30, 2025, we had cash, cash equivalents and restricted cash of $213.4 million, compared to $85.4 million as of March 31, 2025, an increase of $128.0 million. As of June 30, 2025, we had $3.3 million in cash, cash equivalents, and restricted cash in foreign bank accounts. Our cash, cash equivalents, and restricted cash are summarized as follows (in thousands):

Current wording

As of September 30, 2025, we had cash, cash equivalents and restricted cash of $218.8 million, compared to $85.4 million as of March 31, 2025, an increase of $133.4 million. As of September 30, 2025, we had $3.4 million in cash, cash equivalents, and restricted cash in foreign bank accounts. Our cash, cash equivalents, and restricted cash are summarized as follows (in thousands):

Previous wording

For the three months ended June 30, 2025, net cash provided by operating activities was $4.1 million, compared to cash provided by operating activities of $3.4 million for the three months ended June 30, 2024. The increase in cash flows provided by operating activities in the three months ended June 30, 2025 was due primarily to increased net income, decrease in cash spent on accounts payable and accrued expenses as well as inventory, offset by an increase in accounts receivable, cash spent on prepaid expenses, and change in deferred revenue.

Current wording

For the six months ended September 30, 2025, net cash provided by operating activities was $10.6 million, compared to $16.1 million for the six months ended September 30, 2024. The decrease in cash flows provided by operating activities in the six months ended September 30, 2025 was due primarily to changes in deferred revenue, offset by change in accounts payable and accrued expenses, accounts receivable, deferred income taxes, and stock-based compensation expense.

Previous wording

For the three months ended June 30, 2025, net cash used in investing activities was $0.7 million, compared to less than $0.1 million for the three months ended June 30, 2024. The increase in net cash used in investing activities was primarily due to purchases of property, plant and equipment.

Current wording

For the six months ended September 30, 2025, net cash used in investing activities was $2.1 million, compared to $33.5 million for the six months ended September 30, 2024. The decrease in net cash used in investing activities was primarily due to cash paid for the NWL acquisition and related contingent consideration in the prior year.

Previous wording

For the three months ended June 30, 2025, net cash provided by financing activities was $124.6 million compared to cash used in financing activities of $0.1 million for the three months ended June 30, 2024. The improvement was due to the equity raise in June 2025.

Current wording

For the six months ended September 30, 2025, net cash provided by financing activities was $124.8 million compared to cash used in financing activities of $0.1 million for the six months ended September 30, 2024. The increase in net cash provided by financing activities was due to the equity raise in June 2025.

Previous wording

As of June 30, 2025, we had $4.2 million of restricted cash included in long-term assets and $1.3 million of restricted cash included in current assets. At March 31, 2025, we had $4.3 million of restricted cash included in long-term assets and $1.6 million of restricted cash in current assets. These amounts included in restricted cash primarily represent collateral deposits to secure surety bonds and letters of credit for various customer contracts. These deposits are held in interest bearing accounts.

Current wording

As of September 30, 2025, we had $3.0 million of restricted cash included in long-term assets and $2.9 million of restricted cash included in current assets. At March 31, 2025, we had $4.3 million of restricted cash included in long-term assets and $1.6 million of restricted cash in current assets. These amounts included in restricted cash primarily represent collateral deposits to secure surety bonds and letters of credit for various customer contracts. These deposits are held in interest bearing accounts.

Previous wording

We believe we have sufficient available liquidity to fund our operations and capital expenditures for the next twelve months. We raised $124.6 million, net of offering expenses, through an equity raise in June 2025. In addition, we may seek to raise additional capital, which could be in the form of loans, convertible debt or equity, to fund our operating requirements and capital expenditures. There can be no assurance that we will be able to raise additional capital on favorable terms or at all or execute on any other means of improving our liquidity as described above. Additionally, the impact of global sources of instability, including the ongoing wars between Russia and Ukraine and Israel and Hamas, tariffs, trade restrictions and resulting trade conflicts, instability of financial institutions and political instability in the United States, on the global financial markets may reduce our ability to raise additional capital, if necessary, which could negatively impact our liquidity.

Current wording

We believe we have sufficient available liquidity to fund our operations and capital expenditures for the next twelve months. We raised $124.6 million, net of offering expenses, through an equity raise in June 2025. In addition, we may seek to raise additional capital, which could be in the form of loans, convertible debt or equity, to fund our operating requirements and capital expenditures. There can be no assurance that we will be able to raise additional capital on favorable terms or at all or execute on any other means of improving our liquidity as described above. Additionally, the impact of global sources of instability, including the ongoing war between Russia and Ukraine, tariffs, trade restrictions and resulting trade conflicts, instability of financial institutions and political instability in the United States, on the global financial markets may reduce our ability to raise additional capital, if necessary, which could negatively impact our liquidity.

Previous wording

In December 2023, the FASB issued ASU 2023-09,Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in ASU 2023-09 address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. Following the release of ASU 2023-09 in December 2023, the effective date was annual reporting periods beginning after December 15, 2024. As of June 30, 2025, we are evaluating the impact on our condensed consolidated financial statements.

Current wording

In December 2023, the FASB issued ASU 2023-09,Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in ASU 2023-09 address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. Following the release of ASU 2023-09 in December 2023, the effective date was annual reporting periods beginning after December 15, 2024. As of September 30, 2025, we are evaluating the impact on our consolidated financial statements.

Previous wording

In March 2024, the FASB issued ASU 2024-02,Codification Improvements—Amendments to Remove References to the Concepts Statements. The amendments in ASU 2024-02 contain amendments to the Codification that remove references to various FASB Concepts Statements. Following the release of ASU 2024-02 in March 2024, the effective date was annual reporting periods beginning after December 15, 2024. As of June 30, 2025, we are evaluating the impact on our condensed consolidated financial statements.

Current wording

In March 2024, the FASB issued ASU 2024-02,Codification Improvements—Amendments to Remove References to the Concepts Statements. The amendments in ASU 2024-02 contain amendments to the Codification that remove references to various FASB Concepts Statements. Following the release of ASU 2024-02 in March 2024, the effective date was annual reporting periods beginning after December 15, 2024. As of September 30, 2025, we are evaluating the impact on our consolidated financial statements.

Previous wording

In November 2024, the FASB issued ASU 2024-03,Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures. The amendments in ASU 2024-03 address investor requests for more disclosure of disaggregated financial reporting information about expenses presented in the income statement. Following the release of ASU 2024-03 in November 2024, the effective date will be annual reporting periods beginning after December 15, 2026. As of June 30, 2025, we are evaluating the impact on our condensed consolidated financial statements.

Current wording

In November 2024, the FASB issued ASU 2024-03,Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures. The amendments in ASU 2024-03 address investor requests for more disclosure of disaggregated financial reporting information about expenses presented in the income statement. Following the release of ASU 2024-03 in November 2024, the effective date will be annual reporting periods beginning after December 15, 2026. As of September 30, 2025, we are evaluating the impact on our consolidated financial statements.