Forgent Power Solutions, Inc.
For the period ended Mar 31, 2026. Filed May 14, 2026.
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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.
Mar 31, 2026 · Filed May 14, 2026
FPS$19.48+7.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-12-31; filed 2026-03-16.
0002080126-26-000011
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-14.
0002080126-26-000018
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 130 previous paragraphs and 133 current paragraphs.
84 unchanged; 42 reworded; 5 added; 3 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 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 (5)
Current report
On March 30, 2026, the Company completed a follow-on offering (the “Follow-On Offering”) consisting of 10,783,205 shares of Class A common stock offered by the Company and 23,716,795 shares of Class A common stock offered by the Selling Stockholders, including the exercise in full of the underwriters' option to purchase additional shares, at a public offering price of $29.50 per share.
Current report
Comparison of Operations for the Nine Months Ended March 31, 2026 and 2025
Current report
Net Income
Current report
Payable Pursuant to the Tax Receivable Agreement
Current report
As described in Note 11 to our condensed consolidated financial statements included in this Quarterly Report, we are a party to the Tax Receivable Agreement (“TRA”) under which we are contractually committed to pay the Continuing Equity Owners 85% of the amount of the benefits, if any, that we are deemed to realize, as a result of certain transactions. Amounts payable under the TRA are contingent upon, among other things, (i) generation of future taxable income over the term of the TRA and (ii) future changes in tax laws. If we do not generate sufficient taxable income in the aggregate over the term of the TRA to utilize the tax benefits, then we generally would not be required to make the related TRA payments. Therefore, we will only recognize a liability for TRA payments if we determine it is probable that we will generate sufficient future taxable income over the term of the TRA to utilize the related tax benefits. Estimating future taxable income is inherently uncertain and requires judgment. In projecting future taxable income, we consider our historical results and incorporate certain assumptions, including revenue growth, and operating margins, among others. As of March 31, 2026, we recognized $207.3 million of liabilities relating to our obligations under the TRA, after concluding that it was probable that we would have sufficient future taxable income to utilize the related tax benefits. There were no transactions subject to the TRA for which we did not recognize the related liability, as we concluded that we would have sufficient future taxable income to utilize all of the related tax benefits generated by all transactions that occurred in connection with the IPO and follow-on offering. If we determine in the future that we will not be able to fully utilize all or part of the related tax benefits, we would de-recognize the portion of the liability related to the benefits not expected to be utilized.
Removed paragraphs (3)
Previous report
Net Income (Loss)
Previous report
As a result of the factors discussed above, net loss was $(0.1) million and net income was $6.4 million for the three months ended December 31, 2025 and 2024, respectively. The net loss for the three months ended December 31, 2025 was driven primarily by the write-off of approximately $10 million of deferred financing costs related to refinancing our 2023 Credit Agreement.
Previous report
Comparison of Operations for the Six Months Ended December 31, 2025 and 2024
Reworded paragraphs (42)
Previous wording
This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financials statements and the related notes included in Forgent Power Solution, Inc.'s Prospectus dated as of February 4, 2026 and filed with the Securities and Exchange Commission (the "SEC") on February 6, 2026 relating to our Registration Statement on Form S-1 (File No. 333-292632). In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions about our business and operations. Our actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed under the sections of this Quarterly Report on Form 10-Q captioned “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors.”
Current wording
This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q (“Quarterly Report”) and our audited consolidated financials statements and the related notes included in our Prospectus dated as of March 26, 2026 and filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2026 relating to our Registration Statement on Form S-1 (File No. 333-294578). In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions about our business and operations. Our actual results and timing of selected events may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed under the sections of this Quarterly Report captioned “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors.”
Previous wording
This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains the presentation of Adjusted EBITDA and Adjusted Net Income, which are not presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Adjusted EBITDA and Adjusted Net Income are being presented because it provides the Company and readers of this Quarterly Report on Form 10-Q with additional insight into our operational performance relative to earlier periods and relative to our competitors. We do not intend Adjusted EBITDA and Adjusted Net Income to be substitutes for any GAAP financial information. Readers of this Quarterly Report on Form 10-Q should use Adjusted EBITDA and Adjusted Net Income only in conjunction with Net Income, the most comparable GAAP financial measure. Reconciliations of Adjusted EBITDA and Adjusted Net Income to Net Income, the most comparable GAAP measure, are provided in “—Non-GAAP Financial Measures.”
Current wording
This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains the presentation of Adjusted EBITDA, Adjusted Net Income, which are not presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Adjusted EBITDA and Adjusted Net Income are being presented because it provides the Company and readers of this Quarterly Report with additional insight into our operational performance relative to earlier periods and relative to our competitors. We do not intend Adjusted EBITDA and Adjusted Net Income to be substitutes for any GAAP financial information. Readers of this Quarterly Report should use Adjusted EBITDA and Adjusted Net Income only in conjunction with Net Income, the most comparable GAAP financial measure. Reconciliations of Adjusted EBITDA and Adjusted Net Income to Net Income, the most comparable GAAP measure, are provided in “—Non-GAAP Financial Measures.”
Previous wording
Our customers include technology, power, utility and industrial companies who purchase from us directly; intermediaries such as original equipment manufacturers ("OEMs") and integrators who incorporate our products into systems that they sell; contractors that build data centers, power plants and transmission and distribution ("T&D") infrastructure; and electrical products distributors.
Current wording
Our customers include technology, power, utility and industrial companies who purchase from us directly; intermediaries such as original equipment manufacturers (“OEMs”) and integrators who incorporate our products into systems that they sell; contractors that build data centers, power plants and T&D infrastructure; and electrical products distributors.
Previous wording
On February 6, 2026, Forgent Power Solutions, Inc. (“Forgent Power Solutions”) and parent entities of Forgent Power Solutions controlled by Neos Partners, LP (the “Selling Stockholders”) sold 16,586,427 and 39,413,573 shares of Class A common stock of Forgent Power Solutions, respectively, at a public offering price of $27.00 per share (the “IPO”). On February 9, 2026, Forgent Power Solutions and the Selling Stockholders completed the sale of 2,487,964 and 5,912,036 shares of Class A common stock, respectively, pursuant to the exercise in full of the underwriters' overallotment option. From the IPO and exercise of the underwriters’ overallotment option, Forgent Power Solutions received $491.8 million in proceeds, net of underwriting discounts and commissions, which was used to indirectly purchase 19,074,391 Opco LLC Interests from Opco and, and Forgent Power Solutions LLC (“Opco”) utilized the net proceeds it received from the sale of Opco LLC Interests to us to redeem Opco LLC Interests from Forgent Parent II LP and Forgent Parent III LP (the “Existing Opco LLC Owners”). Neither the Company nor Forgent Power Solutions received any of the proceeds from the sale of Class A common stock by the Selling Stockholders.
Current wording
On February 6, 2026, Forgent Power Solutions, Inc. (the “Company”) and parent entities of the Company (the “Selling Stockholders”) sold 19,074,391 and 45,325,609 shares of Class A common stock of the Company, respectively, at an IPO price of $27.00 per share (the “IPO”). From the IPO, the Company received $491.8 million in proceeds, net of underwriting discounts and commissions, which was used to indirectly purchase 19,074,391 Opco LLC Interests from Opco and, and Forgent Power Solutions LLC (“Opco”) utilized the net proceeds it received from the sale of Opco LLC Interests to us to redeem Opco LLC Interests from Forgent Parent II LP and Forgent Parent III LP (the “Existing Opco LLC Owners”). The Company did not receive any of the proceeds from the sale of Class A common stock by the Selling Stockholders.
Previous wording
The primary financial metrics we use to evaluate our overall performance and to track the business results from year to year are Revenues, Net (Loss) Income, Adjusted EBITDA, and Adjusted Net Income.
Current wording
The primary financial metrics we use to evaluate our overall performance and to track the business results from year to year are Revenues, Net Income, Adjusted EBITDA, and Adjusted Net Income.
Previous wording
We believe our financial performance, results of operations and future success depend on a number of factors that present significant opportunities for us, but also pose risks and challenges, including those described below and in Forgent Power Solution's prospectus dated February 4, 2026, and filed with the SEC on February 6, 2026 (the "Prospectus").
Current wording
We believe our financial performance, results of operations and future success depend on a number of factors that present significant opportunities for us, but also pose risks and challenges, including those described below and in the Company’s final prospectus dated March 26, 2026, and filed with the SEC on March 30, 2026 (the “Follow-On Prospectus”).
Previous wording
The following tables set forth our consolidated results of operations for the periods presented. This information is derived from our accompanying consolidated financial statements included elsewhere in this Form 10-Q and prepared in accordance with GAAP. The period-to-period comparisons of our historical results are not necessarily indicative of the results that may be expected in the future, including for the reasons described above under “—Key Factors Affecting Our Performance.”
Current wording
The following tables set forth our consolidated results of operations for the periods presented. This information is derived from our accompanying consolidated financial statements included elsewhere in this Quarterly Report and prepared in accordance with GAAP. The period-to-period comparisons of our historical results are not necessarily indicative of the results that may be expected in the future, including for the reasons described above under “—Key Factors Affecting Our Performance.”
Previous wording
Revenues for the three months ended December 31, 2025 were $296.4 million as compared to $175.3 million for the three months ended December 31, 2024. The increase in revenues was driven by increases in sales of Custom Products and Powertrain Solutions, attributable to growing demand for our products across our end markets, particularly with our data center and grid customers, and new campuses commencing production in the period to meet customer demand.
Current wording
Revenues for the three months ended March 31, 2026 were $378.7 million as compared to $186.2 million for the three months ended March 31, 2025. The increase in revenues was driven by increases in sales of Custom Products and Powertrain Solutions, attributable to growing demand for our products across our end markets, particularly with our data center and grid customers, and new campuses commencing production in the current year to meet customer demand.
Previous wording
Cost of revenues for the three months ended December 31, 2025 were $194.6 million as compared to $111.6 million for the three months ended December 31, 2024. The increase in cost of revenues was primarily driven by an increase in material and labor costs related to higher sales volumes and an increase in fixed overhead costs, including depreciation expense related to the expansion of our manufacturing campuses. Cost of revenues as a percentage of revenues increased primarily as a result of under-absorbed labor costs related to accelerated headcount growth, under-absorbed fixed overhead relating to new campuses ramping toward their target production rates, and one-time startup costs at new campuses.
Current wording
Cost of revenues for the three months ended March 31, 2026 were $247.5 million as compared to $118.1 million for the three months ended March 31, 2025. The increase in cost of revenues was primarily driven by an increase in material and labor costs related to higher sales volumes and an increase in fixed overhead costs, including depreciation expense related to the expansion of our manufacturing campuses. Cost of revenues as a percentage of revenues increased primarily as a result of under-absorbed labor costs related to accelerated headcount growth, under-absorbed fixed overhead relating to new campuses ramping toward their target production rates, and one-time startup costs at new campuses.
Previous wording
Selling, general and administrative expenses for the three months ended December 31, 2025 were $68.1 million as compared to $29.7 million for the three months ended December 31, 2024. The increase in selling, general and administrative expenses was driven by increases in headcount, sales and marketing costs, professional services, and IT costs to support our growth.
Current wording
Selling, general, and administrative expenses for the three months ended March 31, 2026 were $78.5 million as compared to $32.1 million for the three months ended March 31, 2025. The increase in selling, general, and administrative expenses was driven by increases in headcount, sales and marketing costs, professional services, and IT costs to support our growth, as well as IPO-related bonuses.
Previous wording
Depreciation for the three months ended December 31, 2025 was $1.1 million as compared to $0.3 million for the three months ended December 31, 2024. The increase in depreciation was primarily driven by an increase in property and equipment in the current fiscal year.
Current wording
Depreciation for the three months ended March 31, 2026 was $1.6 million as compared to $0.3 million for the three months ended March 31, 2025. The increase in depreciation was primarily driven by an increase in property and equipment in the current fiscal year.
Previous wording
Amortization of intangibles for the three months ended December 31, 2025 was $12.5 million as compared to $14.9 million for the three months ended December 31, 2024. The decrease in amortization was driven by backlog from certain acquisitions being fully amortized in the current fiscal year.
Current wording
Amortization of intangibles for the three months ended March 31, 2026 was $11.7 million as compared to $13.4 million for the three months ended March 31, 2025. The decrease in amortization was driven by backlog from certain acquisitions being fully amortized in the current fiscal year.
Previous wording
Interest expense for the six months ended December 31, 2025 was $34.9 million as compared to $28.6 million for the six months ended December 31, 2024. The increase in interest expense was driven by the write-off of approximately $10 million of deferred financing costs related to refinancing our 2023 Credit Agreement.
Current wording
Interest expense for the three months ended March 31, 2026 was $10.8 million as compared to $13.2 million for the three months ended March 31, 2025. The decrease in interest expense was primarily driven by lower interest rates in the current year.
Previous wording
Interest income for the three months ended December 31, 2025 was $0.5 million as compared to $1.5 million for the three months ended December 31, 2024. The decrease in interest income resulted from (i) lower average cash and cash equivalents balances and (ii) lower interest rates in the current year as compared to the prior year.
Current wording
Interest income for the three months ended March 31, 2026 was $0.7 million as compared to $1.3 million for the three months ended March 31, 2025. The decrease in interest income resulted from (i) lower average cash and cash equivalents balances and (ii) lower interest rates in the current year as compared to the prior year.
Previous wording
Income tax benefit (expense) was $0.4 million and $(0.8) million for the three months ended December 31, 2025 and 2024, respectively. Our effective income tax rate for the three months ended December 31, 2025 and 2024 was 81.5% and 11.6%, respectively. For the three months ended December 31, 2025, our effective income tax rate differed from the federal statutory rate of 21% primarily due to our non-controlling interest not being subject to income taxes and favorable discrete adjustments related to the filing of our 2024 federal tax return.
Current wording
Income tax expense was $4.4 million and $1.9 million for the three months ended March 31, 2026 and 2025, respectively. Our effective income tax rate for the three months ended March 31, 2026 and 2025 was 15.2% and 18.3%, respectively. For the three months ended March 31, 2026, our effective income tax rate differed from the federal statutory rate of 21% primarily due to our non-controlling interest not being subject to income taxes, favorable discrete adjustments related to the filing of our 2024 federal return, and the use of R&D credits.
Previous wording
Revenues for the six months ended December 31, 2025 were $579.7 million as compared to $329.4 million for the six months ended December 31, 2024. The increase in revenues was driven by increases in sales of Custom Products and Powertrain Solutions, attributable to growing demand for our products across our end markets, particularly with our data center and grid customers, and new campuses coming online in the current fiscal year to meet customer demand.
Current wording
Revenues for the nine months ended March 31, 2026 were $958.4 million as compared to $515.6 million for the nine months ended March 31, 2025. The increase in revenues was driven by increases in sales of Custom Products and Powertrain Solutions, attributable to growing demand for our products across our end markets, particularly with our data center and grid customers, and new campuses coming online in the current fiscal year to meet customer demand.
Previous wording
Cost of revenues for the six months ended December 31, 2025 were $380.0 million as compared to $199.2 million for the six months ended December 31, 2024. The increase in cost of revenues was primarily driven by an increase in material and labor costs related to higher sales volumes and an increase in fixed overhead costs, including depreciation expense related to the expansion of our manufacturing campuses. Cost of revenues as a percentage of revenues increased primarily as a result of under-absorbed labor costs related to accelerated headcount growth, under-absorbed fixed overhead relating to new campuses ramping toward their target production rates, and one-time startup costs at new campuses.
Current wording
Cost of revenues for the nine months ended March 31, 2026 were $627.5 million as compared to $317.2 million for the nine months ended March 31, 2025. The increase in cost of revenues was primarily driven by an increase in material and labor costs related to higher sales volumes and an increase in fixed overhead costs, including depreciation expense related to the expansion of our manufacturing campuses. Cost of revenues as a percentage of revenues increased primarily as a result of under-absorbed labor costs related to accelerated headcount growth, under-absorbed fixed overhead relating to new campuses ramping toward their target production rates, and one-time startup costs at new campuses.
Previous wording
Selling, general and administrative expenses for the six months ended December 31, 2025 were $121.7 million as compared to $55.8 million for the six months ended December 31, 2024. The increase in selling, general and administrative expenses was driven by increases in headcount, sales and marketing costs, professional services, and IT costs to support our growth.
Current wording
Selling, general, and administrative expenses for the nine months ended March 31, 2026 were $200.2 million as compared to $87.9 million for the nine months ended March 31, 2025. The increase in selling, general, and administrative expenses was driven by increases in headcount, sales and marketing costs, professional services, and IT costs to support our growth, along with IPO-related bonuses.
Previous wording
Depreciation for the six months ended December 31, 2025 was $1.4 million as compared to $0.5 million for the six months ended December 31, 2024. The increase in depreciation was primarily driven by an increase in property and equipment in the current fiscal year.
Current wording
Depreciation for the nine months ended March 31, 2026 was $3.0 million as compared to $0.8 million for the nine months ended March 31, 2025. The increase in depreciation was primarily driven by an increase in property and equipment in the current fiscal year.
Previous wording
Amortization of intangibles for the six months ended December 31, 2025 was $25.3 million as compared to $32.4 million for the six months ended December 31, 2024. The decrease in amortization was driven by backlog from certain acquisitions being fully amortized in the current fiscal year.
Current wording
Amortization of intangibles for the nine months ended March 31, 2026 was $37.0 million as compared to $45.8 million for the nine months ended March 31, 2025. The decrease in amortization was driven by backlog from certain acquisitions being fully amortized in the current fiscal year.
Previous wording
Interest expense for the three months ended December 31, 2025 was $21.0 million as compared to $13.7 million for the three months ended December 31, 2024. The increase in interest expense was driven by the write-off of approximately $10 million of deferred financing costs related to refinancing our 2023 Credit Agreement.
Current wording
Interest expense for the nine months ended March 31, 2026 was $45.7 million as compared to $41.8 million for the nine months ended March 31, 2025. The increase in interest expense was driven by the write-off of approximately $10 million of deferred financing costs related to refinancing our 2023 Credit Agreement.
Previous wording
Interest income for the six months ended December 31, 2025 was $1.4 million as compared to $3.2 million for the six months ended December 31, 2024. The decrease in interest income resulted from (i) lower average cash and cash equivalents balances and (ii) lower interest rates in the current year as compared to the prior year.
Current wording
Interest income for the nine months ended March 31, 2026 was $2.1 million as compared to $4.5 million for the nine months ended March 31, 2025. The decrease in interest income resulted from (i) lower average cash and cash equivalents balances and (ii) lower interest rates in the current year as compared to the prior year.
Previous wording
Income tax expense was $2.5 million and $2.1 million for the six months ended December 31, 2025 and six months ended December 31, 2024, respectively. Our effective income tax rate for the six months ended December 31, 2025 and 2024 was 14.1% and 13.0%, respectively. For the six months ended December 31, 2025, our effective income tax rate differed from the federal statutory rate of 21% primarily due to our non-controlling interest not being subject to income taxes and favorable discrete adjustments related to the filing of our 2024 federal tax return.
Current wording
Income tax expense was $6.9 million and $4.0 million for the nine months ended March 31, 2026 and nine months ended March 31, 2025, respectively. Our effective income tax rate for the nine months ended March 31, 2026 and 2025 was 14.8% and 15.1%, respectively. For the nine months ended March 31, 2026, our effective income tax rate differed from the federal statutory rate of 21% primarily due to our non-controlling interest not being subject to income taxes, favorable discrete adjustments related to the filing of our 2024 federal return, and the use of R&D credits.
Previous wording
As a result of the factors discussed above, net income was $15.5 million and $13.8 million for the six months ended December 31, 2025 and 2024, respectively.
Current wording
As a result of the factors discussed above, net income was $39.9 million and $22.2 million for the nine months ended March 31, 2026 and 2025, respectively.
Previous wording
The table below reconciles Net (Loss) Income (the most directly comparable GAAP measure) to Adjusted EBITDA (a non-GAAP measure) for the periods presented (in thousands):
Current wording
The table below reconciles Net Income (the most directly comparable GAAP measure) to Adjusted EBITDA (a non-GAAP measure) for the periods presented (in thousands):
Previous wording
(1)Represents fees and expense reimbursements paid to Neos Partners, our Sponsor.
Current wording
(1)Represents fees and expense reimbursements paid to our Sponsor.
Previous wording
(2)Represents non-recurring professional services fees we incurred in connection with readying the Company for our initial public offering and statutory SEC reporting, as well as certain non-recurring recruiting costs.
Current wording
(2)Represents non-recurring professional services fees we incurred in connection with readying the Company for our initial public offering and statutory SEC reporting, as well as IPO-related bonuses and certain non-recurring recruiting costs.
Previous wording
Adjusted Net Income is intended as a supplemental measure of performance that is neither required by, nor presented in accordance with, GAAP. We present Adjusted Net Income because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance.
Current wording
Adjusted Net Income is intended as a supplemental measure of performance that is neither required by, nor presented in accordance with, GAAP. We present Adjusted Net Income because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted Net Income to evaluate the effectiveness of our business strategies.
Previous wording
The table below reconciles Net (Loss) Income (the most directly comparable GAAP measure) to Adjusted Net Income (a non-GAAP measure) for the periods presented (in thousands):
Current wording
The table below reconciles Net Income (the most directly comparable GAAP measure) to Adjusted Net Income (a non-GAAP measure) for the periods presented (in thousands):
Previous wording
(1)Represents fees and expense reimbursements paid to Neos Partners, our Sponsor.
Current wording
(1)Represents fees and expense reimbursements paid to our Sponsor.
Previous wording
(2)Represents non-recurring professional services fees we incurred in connection with readying the Company for our initial public offering and statutory SEC reporting, as well as certain non-recurring recruiting costs.
Current wording
(2)Represents non-recurring professional services fees we incurred in connection with readying the Company for our initial public offering and statutory SEC reporting, as well as IPO-related bonuses and certain non-recurring recruiting costs.
Previous wording
As of December 31, 2025, our cash and cash equivalents were $106.2 million. Net working capital as of December 31, 2025 was $230.6 million.
Current wording
As of March 31, 2026, our cash and cash equivalents were $93.8 million. Net working capital as of March 31, 2026 was $237.2 million.
Previous wording
As of December 31, 2025, we had outstanding borrowings, net of discount and deferred financing fees of $583.5 million, $4.5 million of which was due to be paid in the next 12 months, and $250.0 million available for additional borrowings under our line of credit.
Current wording
As of March 31, 2026, we had outstanding borrowings, net of discount and deferred financing fees of $584.1 million, $6.0 million of which was due to be paid in the next 12 months, and $250.0 million available for additional borrowings under our line of credit.
Previous wording
For the six months ended December 31, 2025, cash provided by operating activities was $6.0 million. Cash provided by operating activities was primarily driven by net income of $15.5 million. Cash provided by operating activities was favorably impacted by $53.5 million of net non-cash items, including $32.3 million of depreciation and amortization and $11.0 million of amortization / write-off of discounts and deferred financing costs. Cash flow from operations for the six months ended December 31, 2025 was reduced by $63.0 million for working capital items, including uses of cash of $91.5 million for accounts receivable resulting from increased revenues and $45.3 million for inventory to support orders in backlog, partially offset by sources of cash from accounts payable of $10.6 million primarily related to inventory purchases, $26.6 million in accrued expenses, and $44.0 million in deferred revenue related to our increased backlog.
Current wording
For the nine months ended March 31, 2026, cash provided by operating activities was $35.2 million. Cash provided by operating activities was primarily driven by net income of $39.9 million. Cash provided by operating activities was favorably impacted by $83.7 million of net non-cash items, including $50.4 million of depreciation and amortization and $11.7 million of amortization / write-off of discounts and deferred financing costs. Cash flow from operations for the nine months ended March 31, 2026 was reduced by $88.5 million for working capital items, including uses of cash of $116.2 million for accounts receivable resulting from increased revenues and $65.8 million for inventory to support orders in backlog, partially offset by sources of cash from accounts payable of $42.8 million primarily related to inventory purchases, $37.1 million in accrued expenses, and $22.6 million in deferred revenue related to our increased backlog.
Previous wording
For the six months ended December 31, 2024, cash provided by operating activities was $59.7 million. Cash provided by operating activities was primarily driven by net income of $13.8 million. Cash provided by operating activities was favorably impacted by $36.4 million of net non-cash items, including $34.9 million of depreciation and amortization. Cash flow from operations for the six months ended December 31, 2024 was increased by $9.5 million for working capital items, including sources of cash from reductions in deferred revenue of $36.3 million, accounts payable of $13.3 million primarily related to inventory purchases, and accrued expenses of $8.0 million primarily related to compensation and sponsor fees, partially offset by uses of cash of $31.4 million for accounts receivable resulting from increased revenues, $7.9 million for inventory to support orders in backlog, and $8.0 million for prepaid and other assets.
Current wording
For the nine months ended March 31, 2025, cash provided by operating activities was $52.2 million. Cash provided by operating activities was primarily driven by net income of $22.2 million. Cash provided by operating activities was favorably impacted by $56.0 million of net non-cash items, including $49.8 million of depreciation and amortization. Cash flow from operations for the nine months ended March 31, 2025 was decreased by $26.0 million for working capital items, including uses of cash of $49.8 million for accounts receivable resulting from increased revenues, $26.7 million for inventory to support orders in backlog, and $16.0 million for prepaid and other assets, partially offset by sources of cash from reductions in deferred revenue of $34.8 million, accounts payable of $24.7 million primarily related to inventory purchases, and accrued expenses of $8.7 million primarily related to compensation and sponsor fees.
Previous wording
For the six months ended December 31, 2025 and 2024, cash used in investing activities of $56.4 million and $24.4 million, respectively, was primarily related to purchases of property and equipment for our capacity expansion, which we expect to complete by the end of fiscal year 2026.
Current wording
For the nine months ended March 31, 2026 and 2025, cash used in investing activities of $84.6 million and $43.1 million, respectively, was primarily related to purchases of property and equipment for our capacity expansion, which we expect to complete by the end of fiscal year 2026.
Previous wording
For the six months ended December 31, 2025, cash provided by financing activities was $45.2 million. Cash provided by financing activities was driven by refinancing our 2023 Credit Agreement during the current period. The Company received $594.0 million, net of discount in proceeds in connection with the refinancing and used those funds to repay $511.1 million for the prior outstanding facilities as well as to pay $16.1 million with respect to the payable pursuant to the acquisitions, $11.8 million in deferred financing costs and $8.3 million in deferred offering costs in connection with the IPO.
Current wording
For the nine months ended March 31, 2026, cash provided by financing activities was $31.9 million. Cash provided by financing activities was driven by refinancing our 2023 Credit Agreement during the current period. The Company received $594.0 million, net of discount in proceeds in connection with the refinancing and used those funds to repay $511.1 million for the prior outstanding facilities, along with a $16.1 million payment related to the payable pursuant to the acquisitions, $11.8 million in debt financing costs, and $21.6 million in deferred offering costs in connection with the IPO.
Previous wording
For the six months ended December 31, 2024, cash used in financing activities was $5.9 million, of which $2.6 million related to payments on the 2023 Credit Agreement, and $3.3 million related to deferred offering costs.
Current wording
For the nine months ended March 31, 2025, cash used in financing activities was $20.3 million, of which $13.1 million related to the payable pursuant to the acquisitions, $3.9 million related to payments on the 2023 Credit Agreement, and $3.3 million related to deferred offering costs.
Previous wording
For a discussion of our debt obligations, see Note 9, “Long-Term Debt” in our consolidated financial statements included elsewhere in this Form 10-Q.
Current wording
For a discussion of our debt obligations, see Note 9, “Long-Term Debt” in our consolidated financial statements included elsewhere in this Quarterly Report.
Previous wording
For a discussion of our product warranties, see Note 2, “Summary of Significant Accounting Policies—Warranty Liability” within the Prospectus.
Current wording
For a discussion of our product warranties, see Note 2, “Summary of Significant Accounting Policies—Warranty Liability” within the IPO Prospectus.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
From the Follow-On Offering, the Company received $308.6 million in proceeds, net of underwriting discounts and commissions, which was used to indirectly purchase 10,783,205 Opco LLC Interests, and Opco utilized the net proceeds it received from the sale of Opco LLC Interests to the Company to redeem Opco LLC Interests from the Existing Opco LLC Owners. The Company did not receive any of the proceeds from the sale of Class A common stock by the Selling Stockholders.
Current report — wording carried from elsewhere
As a result of the factors discussed above, net income for the three months ended March 31, 2026 was $24.5 million compared to $8.4 million for the three months ended March 31, 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
In addition, we use Adjusted Net Income (i) in evaluating management’s performance when determining incentive compensation and (ii) to evaluate the effectiveness of our business strategies.