What changed in this filing

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Item 1. Financial Statements

2025-07-24 compared with 2025-04-25 · 183 added, 113 removed, 513 unchanged (37% of the section changed)

3 unchanged sentences

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

(in thousands, except per share data)

1 unchanged sentence

Net investment income

Net realized gains

Net unrealized gains (losses) on equity securities

Net realized gains (losses)

Net unrealized gains on equity securities

Consolidated revenue

40 unchanged sentences

Income taxes-current

Income taxes-deferred

Accrued expenses

25 unchanged sentences

Balance, March 31, 2024

Other comprehensive earnings (loss), net of tax

Deferred compensation

Share-based compensation

Dividends and dividend equivalents ($ 0.15 per share)

Balance, June 30, 2024

Comprehensive

7 unchanged sentences

Balance, March 31, 2025

Other comprehensive earnings (loss), net of tax

Deferred compensation

Share-based compensation

Dividends and dividend equivalents ($ 0.16 per share)

Balance, June 30, 2025

See accompanying notes to the unaudited condensed consolidated financial statements.

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

(in thousands)

17 unchanged sentences

Cash at the beginning of the period

Cash at March 31,

Cash at June 30,

See accompanying notes to the unaudited condensed consolidated financial statements.

42 unchanged sentences

We then re-evaluate the overall allowance and determine whether the balance is sufficient and, if needed, an additional allowance is recognized.

The allowances for uncollectible amounts on paid and unpaid reinsurance balances recoverable were $ 17 million and $ 10 million, respectively, at March 31, 2025 and December 31, 2024.

The allowances for uncollectible amounts on paid and unpaid reinsurance balances recoverable were $ 17 million and $ 10 million, respectively, at June 30, 2025 and December 31, 2024.

Changes in the allowances were due to changes in the amount of reinsurance balances outstanding, the composition of reinsurers from whom the balances were recoverable and their associated S&P default ratings.

No write-offs were applied to the allowances in the first three months of 2025 and less than $ 1 million was recovered.

No write-offs were applied to the allowances in the first six months of 2025 and less than $ 1 million was recovered.

INTANGIBLE ASSETS

The composition of goodwill and intangible assets at March 31, 2025 and December 31, 2024 is detailed in the following table:

The composition of goodwill and intangible assets at June 30, 2025 and December 31, 2024 is detailed in the following table:

(in thousands)

4 unchanged sentences

Based upon these reviews, none of the assets were impaired.

In addition, there were no triggering events as of March 31, 2025 that would suggest an updated impairment test would be needed for our goodwill and intangible assets.

In addition, there were no triggering events as of June 30, 2025 that would suggest an updated impairment test would be needed for our goodwill and intangible assets.

EARNINGS PER SHARE

6 unchanged sentences

For the Three Months

Ended March 31, 2025

Ended March 31, 2024

Ended June 30, 2025

Ended June 30, 2024

(in thousands, except per share data)

6 unchanged sentences

Anti-dilutive securities excluded from diluted EPS

For the Six Months

Ended June 30, 2025

Ended June 30, 2024

(in thousands, except per share data)

(Denominator)

Earnings available to common shareholders

Effect of Dilutive Securities

Stock options and restricted stock units

Earnings available to common shareholders

Anti-dilutive securities excluded from diluted EPS

COMPREHENSIVE EARNINGS

1 unchanged sentence

In reporting the components of comprehensive earnings, we used the federal statutory tax rate of 21 percent.

Other comprehensive earnings (loss), as shown in the consolidated statements of earnings and comprehensive earnings, is net of tax expense of $ 8 million for the first quarter of 2025, compared to $ 3 million of tax benefit for the same period in 2024.

Unrealized gains, net of tax, recognized in other comprehensive earnings (loss) were $ 30 million for the first three months of 2025.

Comparatively, $ 13 million of unrealized losses, net of tax, were recognized in other comprehensive earnings (loss) in the first three months of 2024.

Other comprehensive earnings (loss), as shown in the consolidated statements of earnings and comprehensive earnings, is net of tax expense of $ 5 million for the second quarter of 2025, compared to $ 2 million of tax benefit for the same period in 2024.

For the six-month period ended June 30, 2025, other comprehensive earnings (loss) is net of tax expense of $ 13 million, compared to $ 5 million of tax benefit for the same period in 2024.

Unrealized gains, net of tax, recognized in other comprehensive earnings (loss) were $ 49 million for the first six months of 2025.

Comparatively, $ 21 million of unrealized losses, net of tax, were recognized in other comprehensive earnings (loss) in the first six months of 2024.

The unrealized gains in 2025 were attributable to a decrease in interest rates, which increased the fair value of securities held in the fixed income portfolio.

3 unchanged sentences

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

Unrealized Gains (Losses) on Available-for-Sale Securities

11 unchanged sentences

For the Three Months

For the Six Months

Component of Accumulated

Ended March 31,

Ended June 30,

Affected line item in the

36 unchanged sentences

All Regulation D privately-placed bonds are classified as corporate securities and deemed Level 3.

The pricing vendor evaluation methodology for these securities includes a combination of observable and unobservable inputs.

The pricing vendor evaluation methodology for these securities includes a combination of

observable and unobservable inputs.

Observable inputs include public corporate spread matrices classified by sector, rating and average life, as well as investment and non-investment grade matrices created from fixed income indices.

10 unchanged sentences

Equity Securities:

As of March 31, 2025, nearly all of our equity holdings were traded on an exchange.

As of June 30, 2025, nearly all of our equity holdings were traded on an exchange.

Exchange traded equities have readily observable price levels and are classified as Level 1 (fair value based on quoted market prices).

6 unchanged sentences

Realized gains and losses on disposition of investments are based on the specific identification of the investments sold on the settlement date.

The following is a summary of the disposition of fixed income and equity securities for the three-month periods ended March 31, 2025 and 2024:

The following is a summary of the disposition of fixed income and equity securities for the six-month periods ended June 30, 2025 and 2024:

Gross Realized

10 unchanged sentences

FAIR VALUE MEASUREMENTS

Assets measured at fair value on a recurring basis as of March 31, 2025 and December 31, 2024 are summarized below:

As of March 31, 2025

Assets measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024 are summarized below:

As of June 30, 2025

Quoted Prices in

8 unchanged sentences

Equity securities

Non-agency asset-backed, commercial mortgage-backed and mortgage-backed securities

As of December 31, 2024

11 unchanged sentences

The following table summarizes changes in the balance of securities whose fair value was measured using significant unobservable inputs (Level 3).

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

Level 3 Securities

Balance as of January 1, 2025

Beginning balance

Net realized and unrealized gains (losses)

1 unchanged sentence

Sales / Calls / Maturities

Balance as of March 31, 2025

Transfers into Level 3

Transfers out of Level 3

Balance as of June 30,

Change in unrealized gains (losses) during the period for Level 3 assets held at period-end - included in other comprehensive earnings (loss)

The amortized cost and fair value of available-for-sale fixed income securities by contractual maturity as of March 31, 2025 were as follows:

March 31, 2025

The amortized cost and fair value of available-for-sale fixed income securities by contractual maturity as of June 30, 2025 were as follows:

June 30, 2025

(in thousands)

7 unchanged sentences

Asset-backed, commercial mortgage-backed and mortgage-backed securities

The amortized cost and fair value of available-for-sale securities at March 31, 2025 and December 31, 2024 are presented in the tables below.

Amortized cost does not include the $ 27 million of accrued interest receivable as of March 31, 2025 and December 31, 2024.

March 31, 2025

The amortized cost and fair value of available-for-sale securities at June 30, 2025 and December 31, 2024 are presented in the tables below.

Amortized cost does not include accrued interest receivable of $ 30 million as of June 30, 2025 and $ 27 million as of December 31, 2024.

June 30, 2025

(in thousands)

9 unchanged sentences

Allowance for Credit Losses and Unrealized Losses on Fixed Income Securities

A reversable allowance for credit losses is recognized on available-for-sale fixed income securities, if applicable.

A reversible allowance for credit losses is recognized on available-for-sale fixed income securities, if applicable.

Several criteria are reviewed to determine if securities in the fixed income portfolio should be included in the allowance for expected credit loss evaluation, including:

8 unchanged sentences

The allowance for any security is limited to the amount that the security’s fair value is below amortized cost.

As of March 31, 2025, the discounted cash flow analysis resulted in an allowance for credit losses on 9 securities.

As of June 30, 2025, the discounted cash flow analysis resulted in an allowance for credit losses on 9 securities.

The following table presents changes in the allowance for expected credit losses on available-for-sale securities:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

2 unchanged sentences

Reduction from securities sold during the period

Reductions from intent to sell securities

Net increase (decrease) from securities that had an allowance at the beginning of the period

Balance as of March 31,

We recognized no losses on securities for which we no longer had the intent to hold until recovery during the first three months of 2025 and 2024.

As of March 31, 2025, in addition to the securities included in the allowance for credit losses, the fixed income portfolio contained 1,378 securities with an unrealized loss position for which an allowance for credit losses had not been recorded.

Balance as of June 30,

We recognized less than $ 1 million of losses on securities for which we no longer had the intent to hold until recovery during the first six months of 2025.

No such losses were recognized during the first six months of 2024.

As of June 30, 2025, in addition to the securities included in the allowance for credit losses, the fixed income portfolio contained 1,133 securities with an unrealized loss position for which an allowance for credit losses had not been recorded.

The $ 177 million in associated unrealized losses represents 5 percent of the fixed income portfolio’s cost basis and 4 percent of total invested assets.

Isolated to these securities, unrealized losses decreased through the first three months of 2025, as bonds rallied on falling interest rates.

Isolated to these securities, unrealized losses decreased through the first six months of 2025, as bonds rallied on falling interest rates.

Of the total 1,133 securities, 932 have been in an unrealized loss position for 12 consecutive months or longer.

The following table illustrates the total value of fixed income securities that were in an unrealized loss position as of March 31, 2025 and December 31, 2024 after factoring in the allowance for credit losses.

The following table illustrates the total value of fixed income securities that were in an unrealized loss position as of June 30, 2025 and December 31, 2024 after factoring in the allowance for credit losses.

All fixed income securities continue to pay the expected coupon payments and we believe we will recover the amortized cost basis of available-for-sale securities that remain in an unrealized loss position.

March 31, 2025

June 30, 2025

December 31, 2024

19 unchanged sentences

Non-agency asset-backed, commercial mortgage-backed and mortgage-backed securities

The following table shows the composition of the fixed income securities in unrealized loss positions, after factoring in the allowance for credit losses, at March 31, 2025 by the National Association of Insurance Commissioners (NAIC) rating and the generally equivalent Standard & Poor’s (S&P) and Moody’s ratings.

The following table shows the composition of the fixed income securities in unrealized loss positions, after factoring in the allowance for credit losses, at June 30, 2025 by the National Association of Insurance Commissioners (NAIC) rating and the generally equivalent Standard & Poor’s (S&P) and Moody’s ratings.

The vast majority of the securities are rated by S&P and/or Moody’s.

1 unchanged sentence

Other Invested Assets

We had $ 60 million of other invested assets at March 31, 2025, compared to $ 58 million at December 31, 2024.

We had $ 57 million of other invested assets at June 30, 2025, compared to $ 58 million at December 31, 2024.

Other invested assets include investments in low-income housing tax credit partnerships (LIHTC) and historic tax credit partnerships (HTC), membership in the Federal Home Loan Bank of Chicago (FHLBC), and investments in private funds.

3 unchanged sentences

The private funds are carried at fair value, using each investment’s net asset value.

Our LIHTC interests increased to $ 11 million at March 31, 2025, compared to $ 7 million at December 31, 2024, as additional investments were made.

Our LIHTC interests recognized amortization of $ 1 million as a component of income tax expense and a total tax benefit of $ 1 million during the first quarter of 2025 and 2024.

Our unfunded commitment for our LIHTC investments was $ 5 million at March 31, 2025 and will be paid out in installments through 2039.

Our HTC investment had a balance of $ 14 million at March 31, 2025, compared to $ 15 million at December 31, 2024.

Our HTC investment recognized $ 1 million of amortization as a component of income tax expense and a total tax benefit of $ 1 million during the first quarter of 2025 and 2024.

Our unfunded commitment for our HTC investments was $ 4 million at March 31, 2025 and will be paid out in installments through 2027.

At March 31, 2025, $ 56 million of investments were pledged as collateral with the FHLBC to ensure timely access to the secured lending facility that ownership of FHLBC stock provides.

At March 31, 2025, $ 50 million of borrowings were outstanding with the FHLBC.

Our investments in private funds totaled $ 21 million at March 31, 2025, down from $ 24 million at December 31, 2024, and had $ 4 million of associated unfunded commitments at March 31, 2025.

Our LIHTC interests increased to $ 11 million at June 30, 2025, compared to $ 7 million at December 31, 2024, as additional investments were made.

Our LIHTC interests recognized amortization of $ 1 million as a component of income tax expense and a total tax benefit of $ 1 million during the second quarter of 2025 and 2024.

For the six-months ended June 30, 2025 and 2024, our LIHTC interests recognized amortization of $ 1 million and a total tax benefit of $ 1 million.

Our unfunded commitment for our LIHTC investments was $ 5 million at June 30, 2025 and will be paid out in installments through 2039.

Our HTC investment had a balance of $ 13 million at June 30, 2025, compared to $ 15 million at December 31, 2024.

Our HTC investment recognized $ 1 million of amortization as a component of income tax expense and a total tax benefit of $ 1 million during the second quarter of 2025 and 2024.

For the six-months ended June 30, 2025, our HTC investment recognized amortization of $ 2 million and a total tax benefit of $ 2 million, compared to $ 2 million of amortization and a total tax benefit of $ 3 million for the same period in 2024.

Our unfunded commitment for our HTC investments was $ 4 million at June 30, 2025 and will be paid out in installments through 2027.

At June 30, 2025, $ 55 million of investments were pledged as collateral with the FHLBC to ensure timely access to the secured lending facility that ownership of FHLBC stock provides.

At June 30, 2025, $ 50 million of borrowings were outstanding with the FHLBC.

Our investments in private funds totaled $ 18 million at June 30, 2025, down from $ 24 million at December 31, 2024, and had $ 3 million of associated unfunded commitments at June 30, 2025.

Our interest in private funds is generally restricted from being transferred or otherwise redeemed without prior consent by the respective entities, and the timed dissolution of the partnerships would trigger redemption.

Investments in Unconsolidated Investees

We had $ 57 million of investments in unconsolidated investees at March 31, 2025, compared to $ 56 million at December 31, 2024.

At March 31, 2025, our investment in Prime Holdings Insurance Services, Inc.

We had $ 61 million of investments in unconsolidated investees at June 30, 2025, compared to $ 56 million at December 31, 2024.

At June 30, 2025, our investment in Prime Holdings Insurance Services, Inc.

(Prime) was $ 61 million and other investments in unconsolidated investees totaled less than $ 1 million.

3 unchanged sentences

Short-term investments are carried at cost.

We had a cash and short-term investment balance of $ 27 million and $ 117 million, respectively, at March 31, 2025, compared to $ 40 million and $ 75 million, respectively, at December 31, 2024.

We had a cash and short-term investment balance of $ 21 million and $ 116 million, respectively, at June 30, 2025, compared to $ 40 million and $ 75 million, respectively, at December 31, 2024.

HISTORICAL LOSS AND LAE DEVELOPMENT

The following table is a reconciliation of our unpaid losses and settlement expenses (LAE) for the first three months of 2025 and 2024:

For the Three Months

Ended March 31,

The following table is a reconciliation of our unpaid losses and settlement expenses (LAE) for the first six months of 2025 and 2024:

For the Six Months

Ended June 30,

(in thousands)

7 unchanged sentences

Prior accident years

Net unpaid losses and LAE at March 31,

Unpaid losses and LAE at March 31,

For the first three months of 2025, incurred losses and LAE included $ 31 million of favorable development on prior years’ loss reserves, largely from accident years 2019 through 2022 and 2024.

Marine, surety, commercial property, commercial excess, general liability and our mortgage reinsurance program were drivers of the favorable development.

Personal umbrella and commercial transportation had adverse development related to auto exposures, but no products experienced significant adverse development.

For the first three months of 2024, incurred losses and LAE included $ 42 million of favorable development on prior years’ loss reserves, largely from accident years 2016 through 2019 and 2023.

Marine, commercial property, personal umbrella, general liability, executive products, transportation and surety were drivers of the favorable development.

Net unpaid losses and LAE at June 30,

Unpaid losses and LAE at June 30,

For the first six months of 2025, incurred losses and LAE included $ 59 million of favorable development on prior years’ loss reserves, largely from accident years 2019 through 2022 and 2024.

Marine, commercial excess, surety, commercial property, general liability and our mortgage reinsurance program were drivers of the favorable development.

While no products experienced significant adverse development, auto liability exposures developed adversely for some products, most notably in commercial transportation.

For the first six months of 2024, incurred losses and LAE included $ 65 million of favorable development on prior years’ loss reserves, largely from accident years 2016, 2017, 2019, 2020, 2022 and 2023.

Marine, surety, general liability, commercial property, executive products, personal umbrella, professional services and commercial excess were drivers of the favorable development.

No products experienced significant adverse development.

Our effective tax rate for the three months ended March 31, 2025 was 19.6 percent, compared to 20.1 percent for the same period in 2024.

Our effective tax rate for the three and six months ended June 30, 2025 was 20.6 percent and 20.2 percent, compared to 20.6 percent and 20.3 percent for the same period in 2024.

Effective rates are dependent upon components of pretax earnings and the related tax effects.

The effective tax rate was lower for the three-month period in 2025 due to lower levels of pretax income, which increased the percentage impact of tax-favored adjustments.

Income tax expense attributable to income from operations for the three-month period ended March 31, 2025 and 2024 differed from the amounts computed by applying the U.S.

Income tax expense attributable to income from operations for the three and six-month periods ended June 30, 2025 and 2024 differed from the amounts computed by applying the U.S.

federal tax rate of 21 percent to pretax income by the items detailed in the table below.

In interim periods, income taxes are adjusted to reflect the effective tax rate we anticipate for the year, with adjustments flowing through the other items, net line.

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30, 2025

(in thousands)

10 unchanged sentences

We believe it is more likely than not that all deferred tax assets will be recovered, given the carry back availability as well as the result of future operations, which we believe will generate sufficient taxable income to realize the deferred tax asset.

The One Big Beautiful Bill Act (OBBBA) was signed into law on July 4, 2025.

The primary implications to the Company include the timing of when depreciation and other costs can be deducted for tax purposes.

The Company does not expect the tax provisions in the OBBBA to have a material impact on our financial statements.

STOCK BASED COMPENSATION

13 unchanged sentences

Compensation expense is based on the probable number of awards expected to vest.

The total compensation expense related to equity awards was $ 2 million in the three-month periods ended March 31, 2025 and 2024.

The total income tax benefit was less than $ 1 million for the three-month period ended March 31, 2025 and 2024.

The total compensation expense related to equity awards was $ 2 million and $ 4 million in the three and six-month periods ended June 30, 2025 and 2024.

The total income tax benefit was less than $ 1 million for the three and six-month periods ended June 30, 2025 and 2024.

Total unrecognized compensation expense relating to outstanding and unvested awards was $ 9 million, which will be recognized over the weighted average vesting period of 2.57 years.

4 unchanged sentences

For participants who are retirement eligible, defined by the plan as those individuals whose age and years of service equals 75 or greater, the requisite service period is deemed to be met and options are immediately expensed on the date of grant.

For participants who will become retirement eligible during the vesting period, the requisite service period over which expense is recognized is the period between the grant date and the attainment of retirement eligibility.

For participants who will

become retirement eligible during the vesting period, the requisite service period over which expense is recognized is the period between the grant date and the attainment of retirement eligibility.

Shares issued upon option exercise are newly issued shares.

The following tables summarize option activity for the three-month period ended March 31, 2025:

The following tables summarize option activity for the six-month period ended June 30, 2025:

Exercise Price

4 unchanged sentences

Options canceled/forfeited

Outstanding options at March 31, 2025

Exercisable options at March 31, 2025

The intrinsic value of options exercised, which is the difference between the fair value and the exercise price, was $ 2 million and $ 8 million during the first three months of 2025 and 2024, respectively.

The fair value of options was estimated using a Black-Scholes based option pricing model with the following weighted average grant-date assumptions and weighted average fair values as of March 31:

Outstanding options at June 30, 2025

Exercisable options at June 30, 2025

The intrinsic value of options exercised, which is the difference between the fair value and the exercise price, was $ 3 million and $ 9 million during the first six months of 2025 and 2024, respectively.

The fair value of options was estimated using a Black-Scholes based option pricing model with the following weighted average grant-date assumptions and weighted average fair values as of June 30:

Weighted-average fair value of grants

13 unchanged sentences

In addition, the RSUs have dividend participation, which accrue as additional units and are settled with granted stock units at the end of the vesting period.

The total fair value of restricted stock units that vested was $ 3 million and $ 2 million during the first six months of 2025 and 2024, respectively.

Nonvested at January 1, 2025

Nonvested at March 31, 2025

Nonvested at June 30, 2025

OPERATING SEGMENT INFORMATION

13 unchanged sentences

We have no material foreign operations or customer concentrations and have no intersegment revenues.

The following table summarizes revenues by major product type within each operating segment:

For the Three Months

For the Six Months

Net Premiums Earned

Ended June 30,

(in thousands)

Commercial excess and personal umbrella

Commercial transportation

General liability

Professional services

Small commercial

Executive products

Other casualty

Commercial property

Other property

Transactional

The following tables present our operating results by segment, as evaluated by the CODM.

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

(in thousands)

1 unchanged sentence

Net investment income

Net realized gains

Net unrealized gains (losses) on equity securities

Net realized gains (losses)

Net unrealized gains on equity securities

Consolidated revenue

4 unchanged sentences

Segment earnings before income taxes

Reconciliation of earnings before income taxes

Depreciation and amortization expense

For the Three Months Ended June 30, 2024

(in thousands)

Net premiums earned

Net investment income

Net realized gains (losses)

Net unrealized gains on equity securities

Consolidated revenue

Losses and settlement expenses

Amortization of deferred acquisition costs

Other policy acquisition costs

Insurance operating expenses

Segment earnings before income taxes

Depreciation and amortization expense

For the Six Months Ended June 30, 2025

(in thousands)

Net premiums earned

Net investment income

Net realized gains

Net unrealized gains (losses) on equity securities

Interest expense on debt

General corporate expenses

Equity in earnings of unconsolidated investees

Earnings before income taxes

Net realized gains (losses)

Net unrealized gains on equity securities

Consolidated revenue

Losses and settlement expenses

Amortization of deferred acquisition costs

Other policy acquisition costs

Insurance operating expenses

Segment earnings before income taxes

Depreciation and amortization expense

For the Three Months Ended March 31, 2024

For the Six Months Ended June 30, 2024

(in thousands)

1 unchanged sentence

Net investment income

Net realized gains

Net unrealized gains (losses) on equity securities

Net realized gains (losses)

Net unrealized gains on equity securities

Consolidated revenue

4 unchanged sentences

Segment earnings before income taxes

Depreciation and amortization expense

The following table reconciles segment earnings before income taxes to earnings before income taxes.

For the Three Months

For the Six Months

Ended June 30,

(in thousands)

Reconciliation of earnings before income taxes

1 unchanged sentence

Net investment income

Net realized gains

Net unrealized gains (losses) on equity securities

Net realized gains (losses)

Net unrealized gains on equity securities

Interest expense on debt

2 unchanged sentences

Earnings before income taxes

Depreciation and amortization expense

The following table further summarizes revenues by major product type within each operating segment:

For the Three Months

Net Premiums Earned

Ended March 31,

(in thousands)

Commercial excess and personal umbrella

Commercial transportation

General liability

Professional services

Small commercial

Executive products

Other casualty

Commercial property

Other property

Transactional

Right-of-use (ROU) assets are included in the other assets line item and lease liabilities are included in the other liabilities line item of the consolidated balance sheet.

8 unchanged sentences

The Company’s operating lease obligations are for branch office facilities.

The components of lease expense and other lease-related information, as of and during the three-month period ended March 31, 2025 and 2024, were as follows:

The components of lease expense and other lease-related information, as of and during the three and six-month periods ended June 30, 2025 and 2024, were as follows:

For the Three Months

Ended March 31,

For the Six Months

Ended June 30,

(in thousands)

7 unchanged sentences

(in thousands)

March 31, 2025

June 30, 2025

December 31, 2024

3 unchanged sentences

Weighted-average discount rate - operating leases

Future minimum lease payments under non-cancellable leases as of March 31, 2025 were as follows:

Future minimum lease payments under non-cancellable leases as of June 30, 2025 were as follows:

(in thousands)

March 31, 2025

June 30, 2025

Total future minimum lease payments

2 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements