WORLD KINECT CORP

Previous wording

This 10-Q Report and the information incorporated by reference in it, or made by us in other reports, filings with the U.S. Securities and Exchange Commission (the "SEC"), press releases, teleconferences, industry conferences or otherwise, contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe," "anticipate," "expect," "estimate," "project," "could," "would," "will," "will be," "will continue," "plan," or words or phrases of similar meaning. Specifically, this 10-Q Report includes forward-looking statements regarding (i) expectations regarding inflation and its impact on us, (ii) conditions in the aviation, land, and marine markets and their impact on our business, (iii) growth in our core businesses (iv) the impact of fuel prices and our working capital, liquidity, and capital expenditure requirements, (v) our expectations and estimates regarding tax, legal and accounting matters, including the impact on our financial statements, (vi) our hedging strategy, (vii) estimates regarding the financial impact of our derivative and other trading contracts and (viii) estimated savings arising out of various cost reduction efforts. These forward-looking statements are qualified in their entirety by cautionary statements and risk factor disclosures contained in our SEC filings.

Current wording

This 10-Q Report and the information incorporated by reference in it, or made by us in other reports, filings with the U.S. Securities and Exchange Commission (the "SEC"), press releases, teleconferences, industry conferences or otherwise, contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe," "anticipate," "expect," "estimate," "project," "could," "would," "will," "will be," "will continue," "plan," or words or phrases of similar meaning. Specifically, this 10-Q Report includes forward-looking statements regarding (i) expectations regarding inflation and its impact on us, (ii) trade-related uncertainty, (iii) conditions in the aviation, land, and marine markets and their impact on our business, (iv) growth in our core businesses, (v) the impact of fuel prices and our working capital, liquidity, and capital expenditure requirements, (vi) our expectations and estimates regarding tax, legal and accounting matters, including the impact on our financial statements, (vii) our hedging strategy, and (viii) estimates regarding the financial impact of our derivative and other trading contracts. These forward-looking statements are qualified in their entirety by cautionary statements and risk factor disclosures contained in our SEC filings.

Previous wording

•changes in the political, economic or regulatory environment generally and in the markets in which we operate, including as a result of the current conflicts in Eastern Europe and the Middle East and the 2024 U.S. presidential election;

Current wording

•changes in the political, economic or regulatory environment generally and in the markets in which we operate, including as a result of the current conflicts in Eastern Europe and the Middle East and the actions of the U.S. presidential administration;

Previous wording

•changes in multilateral conventions, treaties, tariffs or other arrangements between or among sovereign nations;

Current wording

•changes in multilateral conventions, treaties or other arrangements between or among sovereign nations;

Previous wording

We are a global energy management company offering fulfillment and related services across the aviation, marine, and land-based transportation sectors. We also supply natural gas and power in the United States and Europe along with a growing suite of other sustainability-related products and services. We are principally engaged in the distribution of fuel and related products and services in the aviation, land, and marine transportation industries.

Current wording

We are a global energy management company offering fulfillment and related services across the aviation, marine, and land-based transportation sectors. We also supply natural gas and power in the United States and Europe along with a broad suite of other sustainability-related products and services. We are principally engaged in the distribution of fuel and related products and services in the aviation, land, and marine transportation industries.

Previous wording

Our aviation segment has benefited from growth in our fuel and related service offerings, as well as our enhanced logistics capabilities and the geographic expansion of our aviation fueling operations into additional international airport locations. Since 2023, we have successfully achieved higher returns in a high interest rate environment, driven in part by targeted improvements in working capital management consistent with our strategy to rationalize lower-return business activity. As part of our business strategy, we hold inventory in order to meet the needs of our customers. While we generally enter into financial derivative contracts to mitigate price risk exposure associated with our inventory, market pricing dynamics may still negatively impact our results.

Current wording

Our aviation segment has benefited from growth in our fuel and related service offerings, as well as our enhanced logistics capabilities and the geographic expansion of our aviation fueling operations into additional international airport locations. Since 2023, we have successfully achieved higher returns in a high interest rate environment, driven in part by targeted improvements in working capital management consistent with our strategy to rationalize lower-return business activity.

Previous wording

In our land segment we continue to focus on improving asset utilization, leveraging the capabilities of our acquisitions, and realigning our operational platform as discussed under "Restructuring and Exit Activities" above.

Current wording

In our land segment we continue to focus on improving asset utilization, leveraging the capabilities of our acquisitions, and realigning our operational platform. As discussed under "Restructuring and Exit Activities" above, in 2024 we decided to take actions to exit certain operations, including the rationalization of certain assets and associated personnel within our North American land business as well as the disposal of our operations in Brazil. Additionally, on April 9, 2025, we closed the Watson Fuels sale. In 2025, we launched an initiative designed to further streamline our operating model and enhance organizational efficiency and effectiveness.

Previous wording

Due to the generally spot nature of sales in our marine business, we have traditionally benefited from elevated fuel prices and volatility, supply uncertainty, and a constrained credit environment. We have spent a considerable amount of time reorganizing our business to drive internal efficiencies so that we can generate relatively moderate levels of earnings in stable markets and yet remain poised to provide additional value in volatile and credit constrained markets.

Current wording

Due to the generally spot nature of sales in our marine business, we have traditionally benefited from elevated fuel prices and volatility as well as a constrained credit environment. We believe that our marine business is well-positioned to generate relatively moderate levels of earnings in stable markets and provide additional value in volatile and credit constrained markets.

Previous wording

Inflation in the United States and other jurisdictions in which we do business increased significantly beginning in late 2021 into 2022, driven in part by supply chain disruptions, labor shortages and increased commodity prices, which generally resulted in higher costs in 2022 and 2023. Inflation, however, is decelerating and we expect will continue to do so gradually throughout 2024 without a major downturn in activity.

Current wording

Significant uncertainty remains regarding the extent to which recent changes in U.S. trade policy will impact international trade and demand for global transportation services. Tariffs and other trade restrictions can lead to continuing uncertainty and volatility in global financial and commodity markets, declining consumer confidence, lower personal and business travel and consequent demand for our fuel products. Additionally, in recent years, inflation in the United States and other jurisdictions in which we do business increased significantly, driven in part by supply chain disruptions, labor shortages and increased commodity prices, which generally resulted in higher costs. Inflation, however, decelerated in 2024 as supply chains stabilized.

Previous wording

However, to the extent that a rising cost environment impacts our results, there are typically offsetting benefits either inherent in certain parts of our business or that may result from proactive measures we take to reduce the impact of inflation on our net operating results. These benefits can include higher commodity prices that typically result in a constrained credit environment, often creating favorable market conditions that increase demand for our services, as well as our ability to renegotiate prices due to many of our sales contracts being 12 months or less in duration. Additionally, we take measures to mitigate the impact of increases in fuel prices through comprehensive hedging programs and the use of financial derivative contracts.

Current wording

In a rising cost environment, there may be offsetting benefits either inherent in certain parts of our business or that may result from proactive measures we take to reduce the impact of inflation on our net operating results. These benefits can include higher commodity prices that typically result in a constrained credit environment, often creating favorable market conditions that increase demand for our services, as well as our ability to renegotiate prices due to many of our sales contracts being 12 months or less in duration. Additionally, we take measures to mitigate the impact of increases in fuel prices through comprehensive hedging programs and the use of financial derivative contracts.

Previous wording

For these reasons, the increased cost environment, caused in part by inflation, has not had a material impact on our historical results of operations for the periods presented in this report. However, a significant or prolonged period of high inflation, particularly when combined with rising interest rates due to actions taken by governments to attempt to control inflation, could adversely impact our results if costs, including employee compensation driven by competitive job market conditions, were to increase at a rate greater than the increase in the revenues we generate. Higher interest rates also typically increase the interest expense associated with our credit arrangements with banks and other parties that serve as important sources of liquidity for us, which can therefore negatively impact our results of operations for a particular period.

Current wording

We have begun to see impacts associated with trade-related uncertainty. A significant or prolonged period of trade uncertainty or high inflation could adversely impact our results. Higher interest rates also typically increase the interest expense associated with our credit arrangements with banks and other parties that serve as important sources of liquidity for us, which can therefore negatively impact our results of operations for a particular period.

Previous wording

Revenue. Our consolidated revenue for the three months ended September 30, 2024 was $10.5 billion, a decrease of $1.8 billion, or 14%, compared to the three months ended September 30, 2023, attributable to decreased revenue of $832.0 million, $765.2 million, and $157.3 million in our land, aviation, and marine segments, respectively, as discussed further below.

Current wording

Revenue. Our consolidated revenue for the three months ended March 31, 2025 was $9.5 billion, a decrease of $1.5 billion, or 14%, compared to the three months ended March 31, 2024, attributable to decreased revenue of $551.2 million, $457.6 million, and $490.0 million in our land, marine, and aviation segments, respectively, as discussed further below.

Previous wording

Gross Profit. Our gross profit for the three months ended September 30, 2024 was $268.1 million, a decrease of $13.3 million, or 5%, compared to the three months ended September 30, 2023, attributable to decreased gross profit of $19.3 million in our land segment, partially offset by increased gross profit of $3.4 million and $2.6 million in our aviation and marine segments, respectively, as discussed further below.

Current wording

Gross Profit. Our gross profit for the three months ended March 31, 2025 was $230.4 million, a decrease of $23.7 million, or 9%, compared to the three months ended March 31, 2024, attributable to decreased gross profit of $18.3 million and $12.7 million in our land and marine segments, respectively, partially offset by increased gross profit of $7.2 million in our aviation segment, as discussed further below.

Previous wording

Operating Expenses. Total operating expenses for the three months ended September 30, 2024 were $195.8 million, a decrease of $12.3 million, or 6%, compared to the three months ended September 30, 2023. The decrease in operating expenses was primarily driven by lower general and administrative expenses and lower compensation costs associated with the Avinode sale during the second quarter of 2024, as discussed in Note 3. Acquisitions and Divestitures, and lower incentive compensation costs principally in our land segment.

Current wording

Operating Expenses. Total operating expenses for the three months ended March 31, 2025 were $237.0 million, an increase of $46.2 million, or 24%, compared to the three months ended March 31, 2024. The increase in operating expenses was primarily attributable to asset impairment charges recognized in connection with the Watson Fuels sale, as discussed in Note 3. Acquisitions and Divestitures, and restructuring charges recognized during the first quarter of 2025, as discussed under "Restructuring and Exit Activities" above, partially offset by the Avinode sale during the second quarter of 2024 and decreased compensation costs.

Previous wording

Non-Operating Income (Expense), net. For the three months ended September 30, 2024, we had net non-operating expense of $22.6 million compared to net non-operating expense of $26.9 million for the three months ended September 30, 2023. The decrease in non-operating expense of $4.3 million during the three months ended September 30, 2024 was primarily attributable to lower interest expense driven by a decrease in our average interest rates and daily borrowings, as well as fees associated with sales of accounts receivable under our RPAs, partially offset by foreign currency exchange losses.

Current wording

Non-Operating Income (Expense), net. For the three months ended March 31, 2025, we had net non-operating expense of $21.5 million compared to net non-operating expense of $32.8 million for the three months ended March 31, 2024. The decrease in non-operating expense of $11.3 million during the three months ended March 31, 2025 was primarily attributable to a decrease in interest expense, driven by a decrease in our average interest rates and daily borrowings, and an increase in foreign currency exchange gains.

Previous wording

Income Taxes. For the three months ended September 30, 2024, we recognized an income tax expense of $14.6 million, compared to income tax expense of $10.8 million for the three months ended September 30, 2023. The increase of $3.8 million was primarily attributable to higher net discrete tax expense, including $2.1 million related to the Avinode sale, as well as changes in the mix of our worldwide earnings. See Note 12. Income Taxes for additional information.

Current wording

Income Taxes. For the three months ended March 31, 2025, we recognized an income tax benefit of $6.8 million, compared to income tax expense of $3.3 million for the three months ended March 31, 2024. The decrease of $10.2 million was primarily attributable to the reduction in income before income taxes as a result of asset impairments and restructuring charges as well as changes in the mix of our worldwide earnings, partially offset by a $5.6 million increase in net discrete tax expenses during the three months ended March 31, 2025 compared to three months ended March 31, 2024. See Note 11. Income Taxes for additional information.

Previous wording

Revenues in our aviation segment were $5.2 billion for the three months ended September 30, 2024, a decrease of $765.2 million, or 13%, compared to the three months ended September 30, 2023. The decrease in revenue was driven by lower average prices and a decrease in volume. Average jet fuel price per gallon sold decreased by 13%. Total aviation volumes decreased by 15.8 million gallons, or 1%, to 1.9 billion gallons driven primarily by a reduction in lower margin bulk fuel, partially offset by an increase in commercial passenger activity.

Current wording

Revenues in our aviation segment were $4.7 billion for the three months ended March 31, 2025, a decrease of $490.0 million, or 10%, compared to the three months ended March 31, 2024. The decrease in revenue was driven by lower average prices, partially offset by an increase in volume. Average jet fuel price per gallon sold decreased by 13%. Total aviation volumes increased by 27.1 million gallons, or 2%, to 1.7 billion gallons driven primarily by growth in our North America bulk fuel business.

Previous wording

Income from operations in our aviation segment for the three months ended September 30, 2024 was $68.7 million, an increase of $10.1 million, or 17%, compared to the three months ended September 30, 2023, driven by the increase in gross profit discussed above and a decrease in operating expenses. The decrease in operating expenses was primarily attributable to lower general and administrative expenses and lower compensation costs associated with the Avinode sale, partially offset by higher incentive compensation costs.

Current wording

Income from operations in our aviation segment for the three months ended March 31, 2025 was $56.2 million, an increase of $12.2 million, or 28%, compared to the three months ended March 31, 2024, driven by the increase in gross profit discussed above and a decrease in operating expenses. The decrease in operating expenses was primarily attributable to lower compensation and general and administrative expenses associated with the Avinode sale, partially offset by an increase in restructuring charges during the first quarter of 2025, as discussed under "Restructuring and Exit Activities" above, and an increase in general and administrative costs.

Previous wording

Revenues in our land segment were $3.2 billion for the three months ended September 30, 2024, a decrease of $832.0 million, or 21%, compared to the three months ended September 30, 2023. The decrease in revenue was driven by lower average fuel prices and a decrease in volume. Average fuel prices decreased by 18%. Total volumes decreased by 50.4 million, or 3%, to 1.5 billion gallons or gallon equivalents, primarily attributable to our liquid fuel business in North America, partially offset by increased activity in our natural gas and power businesses.

Current wording

Revenues in our land segment were $2.9 billion for the three months ended March 31, 2025, a decrease of $551.2 million, or 16%, compared to the three months ended March 31, 2024. The decrease in revenue was driven by lower average fuel prices and a decrease in volume. Average fuel prices decreased by 10%. Total volumes decreased by 103.8 million, or 6%, to 1.5 billion gallons or gallon equivalents, primarily attributable to the sale of our fuel business in Brazil as well as the rationalization of certain assets within our North American land business during the fourth quarter of 2024.

Previous wording

Revenues in our marine segment were $2.1 billion for the three months ended September 30, 2024, a decrease of $157.3 million, or 7%, compared to the three months ended September 30, 2023. The decrease in revenue was driven by a lower average prices and a decrease in volume. The average price per metric ton of bunker fuel sold decreased by 5%. Total volumes decreased by 0.1 million metric tons, or 3%, to 4.0 million primarily due to reduced demand in our resale businesses.

Current wording

Revenues in our marine segment were $1.9 billion for the three months ended March 31, 2025, a decrease of $457.6 million, or 19%, compared to the three months ended March 31, 2024. The decrease in revenue was driven by lower average fuel prices and a decrease in volume. The average price per metric ton of bunker fuel sold decreased by 6%. Total volumes decreased by 0.6 million metric tons, or 14%, to 3.7 million primarily due to lower demand in our resale businesses driven in part by increasing market uncertainty with respect to international trade.

Previous wording

Income from operations in our land segment for the three months ended September 30, 2024 was $15.2 million, a decrease of $16.7 million, or 52%, compared to the three months ended September 30, 2023. The decrease in gross profit discussed above was partially offset by a decrease in operating expenses principally related to lower incentive compensation costs, partially offset by asset impairment charges recognized during the three months ended September 30, 2024.

Current wording

Income from operations in our marine segment for the three months ended March 31, 2025 was $14.8 million, a decrease of $12.0 million, or 45%, compared to the three months ended March 31, 2024. The decrease in gross profit discussed above was partially offset by a decrease in operating expenses principally related to lower incentive compensation costs, partially offset by an increase in general and administrative costs and restructuring charges during the first quarter of 2025, as discussed under "Restructuring and Exit Activities" above.

Previous wording

Our liquidity, consisting principally of cash and availability under our Credit Facility, fluctuates based on a number of factors, including the timing of receipts from our customers and payments to our suppliers, changes in fuel prices, as well as our financial performance.

Current wording

Our liquidity, consisting principally of cash and availability under our Credit Facility, as described below, fluctuates based on a number of factors, including the timing of receipts from our customers and payments to our suppliers, changes in fuel prices, as well as our financial performance.

Previous wording

Based on the information currently available, we believe that our cash and cash equivalents as of September 30, 2024 and available funds from our Credit Facility, as described below, together with cash flows generated by operations, are sufficient to fund our working capital and capital expenditure requirements for at least the next twelve months.

Current wording

Based on the information currently available, we believe that our cash and cash equivalents as of March 31, 2025 and available funds from our Credit Facility, together with cash flows generated by operations, are sufficient to fund our working capital and capital expenditure requirements for at least the next twelve months after the financial statements are issued.

Previous wording

Convertible Notes. On June 26, 2023, we issued $350.0 million aggregate principal amount of 3.250% Convertible Senior Notes due 2028 (the "Convertible Notes") which mature on July 1, 2028, unless earlier converted, redeemed or repurchased. The Convertible Notes are senior, unsecured obligations that bear interest at a rate of 3.250% per year, payable semiannually in arrears on January 1 and July 1 of each year, beginning on January 1, 2024. The initial conversion rate was 35.1710 shares of common stock per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $28.43 per share. The conversion rate is subject to adjustment upon the occurrence of certain events but will not be adjusted for accrued and unpaid interest. Upon conversion, the Convertible Notes will be settled in cash up to the aggregate principal amount of the Convertible Notes to be converted, and in cash, shares of common stock or any combination thereof, at our option, in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount.

Current wording

Convertible Notes. On June 26, 2023, we issued $350.0 million aggregate principal amount of 3.250% Convertible Senior Notes due 2028 (the "Convertible Notes") which mature on July 1, 2028, unless earlier converted, redeemed or repurchased. The Convertible Notes are senior, unsecured obligations that bear interest at a rate of 3.250% per year, payable semiannually in arrears on January 1 and July 1 of each year, beginning on January 1, 2024. The initial conversion rate was 35.1710 shares of common stock per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $28.43 per share. The conversion rate is subject to adjustment upon the occurrence of certain events, but will not be adjusted for accrued and unpaid interest. Upon conversion, the Convertible Notes will be settled in cash up to the aggregate principal amount of the Convertible Notes to be converted, and in cash, shares of common stock or any combination thereof, at our option, in respect of the remainder, if any, of our conversion obligation in excess of the aggregate principal amount. See Note 7. Debt, Interest Income, Expense, and Other Finance Costs for additional information.

Previous wording

Credit Agreement. The Fourth Amended and Restated Credit Agreement (as amended, the "Credit Agreement"), matures in April 2027 and provides for a term loan as well as a revolving credit facility of $1.5 billion (the "Credit Facility"). Our availability under the Credit Facility is limited by, among other things, our consolidated total leverage ratio, which is defined in the Credit Agreement and is based, in part, on our consolidated earnings before interest, taxes, depreciation and amortization, and share-based compensation, with such adjustments as specified therein, for the four immediately preceding fiscal quarters. The Credit Agreement generally limits the total amount of indebtedness we may incur to a consolidated total leverage ratio of not more than 4.75 to 1.

Current wording

Credit Agreement. The Fourth Amended and Restated Credit Agreement (as amended, the "Credit Agreement"), matures in April 2027 and provides for a term loan as well as a revolving credit facility of up to $1.5 billion (the "Credit Facility"). Our availability under the Credit Facility is limited by, among other things, our consolidated total leverage ratio, which is defined in the Credit Agreement and is based, in part, on our consolidated earnings before interest, taxes, depreciation and amortization, and share-based compensation, with such adjustments as specified therein, for the four immediately preceding fiscal quarters. The Credit Agreement generally limits the total amount of indebtedness we may incur to a consolidated total leverage ratio of not more than 4.75 to 1.

Previous wording

As a result of the foregoing, as well as other covenants and restrictions contained in our Credit Agreement, our availability under the Credit Facility may fluctuate from period to period. In addition, our failure to comply with the covenants contained in our Credit Agreement could result in an event of default. An event of default, if not cured or waived, would permit acceleration of any outstanding indebtedness under the Credit Facility and our term loan, trigger cross-defaults under certain other agreements to which we are a party, and impair our ability to obtain working capital advances and issue letters of credit, which would have a material adverse effect on our business, financial condition, results of operations and cash flows. See Note 7. Debt, Interest Income, Expense, and Other Finance Costs for additional information.

Current wording

As a result of the foregoing, as well as other covenants and restrictions contained in our Credit Agreement, our availability under the Credit Facility may fluctuate from period to period. In addition, our failure to comply with the covenants contained in our Credit Agreement could result in an event of default. An event of default, if not cured or waived, would permit acceleration of any outstanding indebtedness under the Credit Facility and our term loan, trigger cross-defaults under certain other agreements to which we are a party, and impair our ability to obtain working capital advances and issue letters of credit, which would have a material adverse effect on our business, financial condition, results of operations and cash flows.

Previous wording

Receivables Purchase Agreements. We also have accounts receivable programs under RPAs that allow us to sell a specified amount of qualifying accounts receivable and receive cash consideration equal to the total balance, less an associated fee, which varies based on the outstanding accounts receivable at any given time. The RPAs provide the constituent banks with the ability to add or remove customers from these programs in their discretion based on, among other things, the level of risk exposure the bank is willing to accept with respect to any particular customer. The fees the banks charge us to purchase the receivables from these customers can also be impacted for these reasons. See Note 2. Accounts Receivable for additional information.

Current wording

Receivables Purchase Agreements. We also have accounts receivable programs under receivables purchase agreements ("RPAs") that allow us to sell a specified amount of qualifying accounts receivable and receive cash consideration equal to the total balance, less an associated fee, which varies based on the outstanding accounts receivable at any given time. The RPAs provide the constituent banks with the ability to add or remove customers from these programs in their discretion based on, among other things, the level of risk exposure the bank is willing to accept with respect to any particular customer. The fees the banks charge us to purchase the receivables from these customers can also be impacted for these reasons.

Previous wording

The following table reflects the major categories of cash flows for the nine months ended September 30, 2024 and 2023 (in millions). For additional details, please see the unaudited Condensed Consolidated Statements of Cash Flows in this Quarterly Report on Form 10-Q.

Current wording

The following table reflects the major categories of cash flows for the three months ended March 31, 2025 and 2024 (in millions). For additional details, please see the unaudited Condensed Consolidated Statements of Cash Flows in this Quarterly Report on Form 10-Q.

Previous wording

Operating Activities. For the nine months ended September 30, 2024, net cash provided by operating activities was $139.6 million, compared to $266.8 million net cash provided during the nine months ended September 30, 2023. The $127.2 million decrease in operating cash flows was principally due to a decrease in our accounts payable and accounts receivable, inclusive of cash provided by our RPA activity, and inventory, as well as in our derivative activities. These decreases were driven by relatively stable average fuel prices during the nine months ended September 30, 2024 compared to the declining price environment experienced during the nine months ended September 30, 2023, when cash provided by operations also benefited from the rationalization of lower-return businesses within our aviation segment. These decreases were offset by an increase in our net income adjusted for noncash items (see "Results of Operations" for further details of the drivers impacting our net income) and cash flows associated with deferred revenue and income taxes.

Current wording

Operating Activities. For the three months ended March 31, 2025, net cash provided by operating activities was $114.4 million, compared to $110.2 million net cash provided during the three months ended March 31, 2024. The $4.1 million increase in operating cash flows was principally due to increased cash provided by our RPA activity, as well as cash provided by the collection of transaction tax refunds during the three months ended March 31, 2025. These increases were offset by cash used in our derivative activities driven by increased collateral requirements as well a decrease in our net income adjusted for noncash items (see "Results of Operations" for further details of the drivers impacting our net income).

Previous wording

Investing Activities. For the nine months ended September 30, 2024, net cash provided by investing activities was $98.9 million, compared to net cash used of $77.4 million during the nine months ended September 30, 2023. The net cash provided by investing activities for the nine months ended September 30, 2024 was primarily driven by net proceeds of $200.1 million from the Avinode sale, as discussed in Note 3. Acquisitions and Divestitures, partially offset by capital expenditures of $50.3 million and the issuance of notes receivable of $47.9 million. Net cash used in investing activities for the nine months ended September 30, 2023 was principally driven by capital expenditures of $67.9 million.

Current wording

Investing Activities. For the three months ended March 31, 2025, net cash used in investing activities was $5.8 million, compared to net cash used of $16.9 million during the three months ended March 31, 2024. The net cash used in investing activities for the three months ended March 31, 2025 was primarily driven by capital expenditures of $15.2 million, partially offset by $9.3 million of cash received from the net repayment of notes receivable. Net cash used in investing activities for the three months ended March 31, 2024 was primarily driven by capital expenditures of $17.5 million.

Previous wording

Financing Activities. For the nine months ended September 30, 2024, net cash used in financing activities was $162.6 million compared to net cash used of $140.4 million for the nine months ended September 30, 2023. The net cash used in financing activities for the nine months ended September 30, 2024 was primarily attributable to repurchases of common stock of $57.4 million, payments of deferred consideration related to prior acquisitions of $51.3 million, dividend payments of $28.6 million, and net repayments under our Credit Facility of $15.6 million. Net cash used in financing activities for the nine months ended September 30, 2023 was primarily attributable to net borrowings of $38.7 million, driven by proceeds of $350.0 million from the issuance of the Convertible Notes and proceeds of $40.3 million from secured borrowings associated with the transfer of transaction taxes, as discussed in Note 7. Debt, Interest Income, Expense, and Other Finance Costs, partially offset by $345.3 million of net repayments under our Credit Facility. In connection with the issuance of the Convertible Notes, we paid $70.5 million for the purchase of the convertible note hedges and $11.9 million for debt issuance costs, and received $40.0 million from the sale of warrants. In addition, net cash used in financing activities includes payments of deferred consideration related to prior acquisitions of $62.9 million, repurchases of common stock of $50.0 million, and dividend payments of $25.7 million.

Current wording

Financing Activities. For the three months ended March 31, 2025, net cash used in financing activities was $32.4 million compared to net cash used of $64.3 million for the three months ended March 31, 2024. The net cash used in financing activities for the three months ended March 31, 2025 was principally attributable to repurchases of common stock of $10.0 million, dividend payments of $9.7 million, and net repayments under our Credit Facility of $6.3 million. Net cash used in financing activities for the three months ended March 31, 2024 was primarily attributable to payments of deferred consideration related to prior acquisitions of $50.7 million, dividend payments of $8.4 million, and net repayments under our Credit Facility of $3.1 million.

Previous wording

We assess accounting estimates that require consideration of forecasted financial information. Significant judgment is involved in performing these estimates. As of September 30, 2024, we have no reporting units considered at risk and the carrying value of our long-lived assets and equity investments were recoverable. A reporting unit is considered at risk when its fair value does not exceed its carrying amount by more than 10%. While our land reporting unit is not currently considered at risk, as a result of the performance during the current year combined with updated projections, we noted that the excess of the fair value over the carrying amount has decreased since December 31, 2023.

Current wording

We assess accounting estimates that require consideration of forecasted financial information. Significant judgment is involved in performing these estimates. A reporting unit is considered at risk when its fair value does not exceed its carrying amount by more than 10%. While our aviation reporting unit is not currently considered at risk, our land reporting unit is considered to be at risk as of March 31, 2025.

Previous wording

The assumptions used in these assessments, particularly the expected growth rates, the profitability embedded in the projected cash flows provided by our legacy and newly acquired businesses, the discount rate and the market-based multiples, are defined based on available information as of the testing date considering current market volatility and geopolitical risks. When testing goodwill at our reporting units, we also consider the volatility in the Company's market capitalization and evaluate the potential impact that this volatility may have on the estimated fair value of our reporting units. As of September 30, 2024 the goodwill balances in our land and aviation reporting units were $844.7 million and $337.0 million, respectively.

Current wording

The assumptions used in these assessments, particularly the expected growth rates, the profitability embedded in the projected cash flows provided by our legacy and newly acquired businesses, the discount rate and the market-based multiples, are defined based on available information as of the testing date considering current market volatility and geopolitical risks. When testing goodwill at our reporting units, we also consider the volatility in the Company's market capitalization and evaluate the potential impact that this volatility may have on the estimated fair value of our reporting units. As of March 31, 2025, the goodwill balances in our land and aviation reporting units were $831.9 million and $354.5 million, respectively.