CACI Reports Results for Its Fiscal 2026 Second Quarter and Raises Guidance for All Metrics (Form 8-K)

CACI Reports Results for Its Fiscal 2026 Second Quarter and Raises Guidance for All Metrics

Revenues of $2.2 billion, up 5.7% YoY

Net income of $123.9 million; Diluted EPS of $5.59, up 14.5% YoY

Adjusted net income of $150.7 million; Adjusted diluted EPS of $6.81, up 14.5% YoY

EBITDA of $262.6 million and EBITDA margin of 11.8%

RESTON, Va.--(BUSINESS WIRE)--CACI International Inc (NYSE: CACI) announced results today for its fiscal second quarter ended December 31, 2025.

"Our strong second quarter results demonstrate the continued successful execution of our strategy and the value of our differentiated capabilities. With healthy free cash flow driven by solid revenue growth and strong EBITDA margin, we're delivering on our commitments to shareholders while addressing our customers' most critical mission needs," said John Mengucci, CACI President and Chief Executive Officer. "Through bold, strategic investments we have built leading positions in electronic warfare and Agile software development, while continuing to strengthen our technology portfolio in space with the planned acquisition of ARKA Group - all areas vital to national security. With our strong results, expanding backlog, and robust pipeline, we are raising our fiscal year 2026 guidance and remain extremely well-positioned to achieve our 3-year financial targets and drive long-term value for our customers and our shareholders."

Second Quarter Results

			Three Months Ended
(in millions, except earnings per share and DSO)			12/31/2025						12/31/2024						% Change3
Revenues			$	2,220.1					$	2,099.8					5.7%
Income from operations			$	206.5					$	181.3					13.9%
Net income			$	123.9					$	109.9					12.7%
Adjusted net income, a non-GAAP measure1			$	150.7					$	134.2					12.3%
Diluted earnings per share			$	5.59					$	4.88					14.5%
Adjusted diluted earnings per share, a non-GAAP measure1			$	6.81					$	5.95					14.5%
Earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP measure1			$	262.6					$	232.9					12.8%
Net cash provided by operating activities excluding MARPA, a non-GAAP measure1			$	154.2					$	76.0					102.9%
Free cash flow, a non-GAAP measure1			$	138.2					$	66.1					109.1%
Days sales outstanding (DSO)2			57						53

(1)This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

(2)The DSO calculations for three months ended December 31, 2025 and 2024, exclude the impact of the Company's Master Accounts Receivable Purchase Agreement (MARPA), which was 7 days for both periods.

(3)Percentages are calculated using the underlying whole dollar amounts. Some percentages may vary slightly due to rounding.

Revenues in the second quarter of fiscal year 2026 increased 5.7% year-over-year, driven by 4.5% organic growth. The increase in income from operations was driven by higher revenues and gross profit. Growth in diluted earnings per share and adjusted diluted earnings per share were driven by higher income from operations and share repurchases made during fiscal year 2025, partially offset by higher interest expense and a higher tax provision. The increase in cash from operations, excluding MARPA, was driven primarily by higher net income and strong working capital management.

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Second Quarter Contract Awards

Contract awards in the second quarter totaled $1.4 billion, with approximately 70% for new business to CACI. Awards exclude ceiling values of multi-award, indefinite delivery, indefinite quantity (IDIQ) contracts. Some notable awards during the quarter were:

•CACI was awarded $265 million in new contracts and additional work on current programs within the intelligence community to support various national security efforts.

•CACI received its first production order for remote modular terminals (RMTs) that will intercept and disrupt adversarial beyond-line-of-sight (BLOS) satellite communication for a Department of Defense customer. RMT's capabilities will allow customers to enhance capacity, adaptability, and resiliency in military operations.

Total backlog as of December 31, 2025, was $32.8 billion compared with $31.8 billion a year ago, an increase of 3.1%. Funded backlog as of December 31, 2025, was $4.4 billion compared with $4.1 billion a year ago, an increase of 7.3%.

Additional Highlights

•CACI entered into a definitive agreement to acquire ARKA Group L.P. (ARKA) from funds managed by Blackstone Tactical Opportunities (Blackstone) in an all-cash transaction for $2.6 billion. Aligned with CACI's commitment to delivering advanced technology for national security customers, ARKA supports national security missions through its space-based sensor portfolio and ground-based software processing, accelerating the delivery of actionable intelligence to the warfighter.

•CACI was named as an awardee for the Missile Defense Agency Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) IDIQ contract with a ceiling of $151 billion. This contract encompasses a broad range of work areas that allows for the rapid delivery of innovative capabilities to the warfighter with increased speed and agility, including ensuring continuous, layered protection against air, missile, space, cyber, and hybrid threats originating from any domain.

•CACI announced the appointment of Adm. Michael Gilday, U.S. Navy (Ret.), and David Keffer to its Board of Directors, both joining following the death of Michael A. Daniels in July 2025 and the resignation of William L. Jews. Their extensive leadership experience and defense sector knowledge will strengthen CACI's continued ability to drive shareholder value while delivering solutions to the nation's most complex challenges.

•President and Chief Executive Officer, John Mengucci, was named Executive of the Year by the Northern Virginia Chamber (NVC) and the Professional Services Council (PSC) during the 2025 Greater Washington Government Contractor Awards. Mengucci was recognized in the over $300 million revenue category for his achievements in calendar year 2024.

•CACI received the National Veteran Small Business Coalition's (NVSBC) Champions Award for exceeding the NVSBC-established goals for subcontracting to service-disabled and veteran-owned small businesses (SD/VOSB) during the U.S. government's fiscal year 2024. This marks the 15th consecutive year that CACI has been recognized for this honor.

•CACI's commitment to supporting veterans, National Guard and Reserve members, and military spouses remains a defining part of its culture. In 2025, that longstanding dedication was reinforced through 10 prestigious distinctions, reflecting continued efforts to create meaningful career pathways for the military-affiliated community.

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Fiscal Year 2026 Guidance

The table below summarizes our fiscal year 2026 guidance and represents our views as of January 21, 2026. This guidance does not include our planned acquisition of ARKA Group.

(in millions, except earnings per share)			Fiscal Year 2026
			Current Guidance						Prior Guidance
Revenues			$9,300 - $9,500						$9,200 - $9,400
Adjusted net income, a non-GAAP measure1			$630 - $645						$605 - $625
Adjusted diluted earnings per share, a non-GAAP measure1			$28.25 - $28.92						$27.13 - $28.03
Diluted weighted average shares			22.3						22.3
Free cash flow, a non-GAAP measure2			at least $725						at least $710

(1)Adjusted net income and adjusted diluted earnings per share are defined as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact. This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

(2)Free cash flow is defined as net cash provided by operating activities excluding MARPA, less payments for capital expenditures. Fiscal year 2026 free cash flow guidance assumes approximately $50 million in tax benefit related to the modification of Section 174 in the One Big Beautiful Bill Act of 2025 and an approximately $40 million cash tax refund related to our method change enacted in fiscal year 2021. This non-GAAP measure should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP. For additional information regarding this non-GAAP measure, see the related explanation and reconciliation to the GAAP measure included below in this release.

Conference Call Information

We have scheduled a conference call for 8:00 AM Eastern Time Thursday, January 22, 2026, during which members of our senior management will be making a brief presentation focusing on second quarter results and operating trends, followed by a question-and-answer session. You can listen to the webcast and view the accompanying exhibits on CACI's investor relations website at http://investor.caci.com/events/default.aspx at the scheduled time. A replay of the call will also be available on CACI's investor relations website at http://investor.caci.com/.

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About CACI

CACI International Inc (NYSE: CACI) is a national security company with 26,000 talented employees who are Ever Vigilant in expanding the limits of national security. We ensure our customers' success by delivering differentiated technology and distinctive expertise to accelerate innovation, drive speed and efficiency, and rapidly anticipate and eliminate threats. Our culture drives our success and earns us recognition as a Fortune World's Most Admired Company. We are members of the Fortune 500™, the Russell 1000 Index, and the S&P MidCap 400 Index. For more information, visit us at caci.com.

There are statements made herein that do not address historical facts and, therefore, could be interpreted to be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are subject to risk factors that could cause actual results to be materially different from anticipated results. These risk factors include, but are not limited to, the following: our reliance on U.S. government contracts, which includes general risk around the government contract procurement process (such as bid protest, small business set asides, loss of work due to organizational conflicts of interest, etc.) and termination risks; significant delays or reductions in appropriations for our programs and broader changes in U.S. government funding and spending patterns; legislation that amends or changes discretionary spending levels or budget priorities, such as for homeland security or to address global pandemics; legal, regulatory, and political change from successive presidential administrations that could result in economic uncertainty; changes in U.S. federal agencies, current agreements with other nations, foreign events, or any other events which may affect the global economy, including the impact of global pandemics; the results of government audits and reviews conducted by the Defense Contract Audit Agency, the Defense Contract Management Agency, or other governmental entities with cognizant oversight; competitive factors such as pricing pressures and/or competition to hire and retain employees (particularly those with security clearances); failure to achieve contract awards in connection with re-competes for present business and/or competition for new business; regional and national economic conditions in the United States and globally, including but not limited to: terrorist activities or war, changes in interest rates, currency fluctuations, significant fluctuations in the equity markets, and market speculation regarding our continued independence; our ability to meet contractual performance obligations, including technologically complex obligations dependent on factors not wholly within our control; limited access to certain facilities required for us to perform our work, including during a global pandemic; changes in tax law, the interpretation of associated rules and regulations, or any other events impacting our effective tax rate; changes in technology; the potential impact of the announcement or consummation of a proposed transaction and our ability to successfully integrate the operations of our recent and any future acquisitions; our ability to achieve the objectives of near term or long-term business plans; the effects of health epidemics, pandemics and similar outbreaks may have material adverse effects on our business, financial position, results of operations and/or cash flows; and other risks described in our Securities and Exchange Commission filings.

Corporate Communications and Media:						Investor Relations:
Gino Bona, Executive Vice President, Corporate Communications						George Price, Senior Vice President, Investor Relations
(571) 597-2787, [email protected]						(703) 841-7818, [email protected]

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CACI International Inc

Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data)

			Three Months Ended																		Six Months Ended
			12/31/2025						12/31/2024						% Change						12/31/2025						12/31/2024						% Change
Revenues			$	2,220,097					$	2,099,809					5.7%						$	4,507,720					$	4,156,698					8.4%
Costs of revenues:
Direct costs			1,495,011						1,402,225						6.6%						3,042,205						2,816,649						8.0%
Indirect costs and selling expenses			464,585						466,661						(0.4)%						938,441						894,607						4.9%
Depreciation and amortization			54,032						49,625						8.9%						108,330						84,303						28.5%
Total costs of revenues			2,013,628						1,918,511						5.0%						4,088,976						3,795,559						7.7%
Income from operations			206,469						181,298						13.9%						418,744						361,139						16.0%
Interest expense and other, net			44,950						44,066						2.0%						91,123						68,036						33.9%
Income before income taxes			161,519						137,232						17.7%						327,621						293,103						11.8%
Income taxes			37,664						27,294						38.0%						78,956						62,988						25.4%
Net income			$	123,855					$	109,938					12.7%						$	248,665					$	230,115					8.1%
Basic earnings per share			$	5.61					$	4.90					14.5%						$	11.28					$	10.29					9.6%
Diluted earnings per share			$	5.59					$	4.88					14.5%						$	11.22					$	10.21					9.9%
Weighted average basic shares outstanding			22,082						22,414						(1.5)%						22,038						22,359						(1.4)%
Weighted average diluted shares outstanding			22,145						22,534						(1.7)%						22,156						22,537						(1.7)%

5

CACI International Inc

Consolidated Balance Sheets (Unaudited)

(in thousands)

			12/31/2025						6/30/2025
ASSETS
Current assets:
Cash and cash equivalents			$	422,976					$	106,181
Accounts receivable, net			1,366,321						1,405,441
Prepaid expenses and other current assets			325,380						268,323
Total current assets			2,114,677						1,779,945
Goodwill			5,017,707						5,021,805
Intangible assets, net			1,021,022						1,091,276
Property, plant, and equipment, net			207,491						212,035
Operating lease right-of-use assets			373,753						343,944
Supplemental retirement savings plan assets			103,196						101,024
Other assets			95,443						97,569
Total assets			$	8,933,289					$	8,647,598
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt			$	38,750					$	68,750
Accounts payable			337,115						381,574
Accrued compensation and benefits			221,233						282,987
Other accrued expenses and current liabilities			475,970						474,795
Total current liabilities			1,073,068						1,208,106
Long-term debt, net of current portion			2,922,639						2,849,190
Supplemental retirement savings plan obligations, net of current portion			119,581						114,261
Deferred income taxes			191,386						142,636
Operating lease liabilities			425,961						377,080
Other liabilities			62,886						62,380
Total liabilities			4,795,521						4,753,653
Total shareholders' equity			4,137,768						3,893,945
Total liabilities and shareholders' equity			$	8,933,289					$	8,647,598

6

CACI International Inc

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

			Six Months Ended December 31,
			2025						2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income			$	248,665					$	230,115
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			108,330						84,303
Amortization of deferred financing costs			2,633						1,291
Stock-based compensation expense			33,805						31,343
Deferred income taxes			47,428						(13,352)
Changes in operating assets and liabilities, net of effect of business acquisitions:
Accounts receivable, net			35,296						(51,731)
Prepaid expenses and other assets			(49,731)						(12,995)
Accounts payable and other accrued expenses			(20,304)						(27,907)
Accrued compensation and benefits			(61,100)						(86,261)
Income taxes			(23,082)						5,077
Operating lease liabilities, net			530						(572)
Long-term liabilities			2,790						1,392
Net cash provided by operating activities			325,260						160,703
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures			(33,058)						(21,400)
Acquisitions of businesses, net of cash acquired			15,800						(1,569,388)
Other			158						2,410
Net cash used in investing activities			(17,100)						(1,588,378)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings			2,025,173						4,347,000
Principal payments on borrowings			(1,975,298)						(2,824,148)
Deferred financing costs			(9,061)						(9,803)
Proceeds from employee stock purchase plans			7,400						6,415
Repurchases of common stock			(9,012)						(10,352)
Payment of taxes for equity transactions			(29,918)						(35,797)
Net cash provided by financing activities			9,284						1,473,315
Effect of exchange rate changes on cash and cash equivalents			(649)						(3,894)
Net change in cash and cash equivalents			316,795						41,746
Cash and cash equivalents, beginning of period			106,181						133,961
Cash and cash equivalents, end of period			$	422,976					$	175,707

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Revenues by Customer Type (Unaudited)

			Three Months Ended
(in thousands)			12/31/2025												12/31/2024												$ Change						% Change
Department of Defense			$	1,152,152					51.8%						$	1,118,987					53.3%						$	33,165					3.0%
Intelligence Community			539,040						24.3						527,744						25.1						11,296						2.1
Federal civilian agencies			438,632						19.8						365,742						17.4						72,890						19.9
Commercial and other			90,273						4.1						87,336						4.2						2,937						3.4
Total			$	2,220,097					100.0%						$	2,099,809					100.0%						$	120,288					5.7%

			Six Months Ended
(in thousands)			12/31/2025												12/31/2024												$ Change						% Change
Department of Defense			$	2,331,778					51.7%						$	2,206,275					53.1%						$	125,503					5.7%
Intelligence Community			1,135,469						25.2						1,062,087						25.6						73,382						6.9
Federal civilian agencies			850,362						18.9						717,961						17.3						132,401						18.4
Commercial and other			190,111						4.2						170,375						4.0						19,736						11.6
Total			$	4,507,720					100.0%						$	4,156,698					100.0%						$	351,022					8.4%

Revenues by Contract Type (Unaudited)

			Three Months Ended
(in thousands)			12/31/2025												12/31/2024												$ Change						% Change
Cost-plus-fee			$	1,310,111					59.0%						$	1,240,213					59.1%						$	69,898					5.6%
Fixed-price			598,017						26.9						602,859						28.7						(4,842)						(0.8)
Time-and-materials			311,969						14.1						256,737						12.2						55,232						21.5
Total			$	2,220,097					100.0%						$	2,099,809					100.0%						$	120,288					5.7%

			Six Months Ended
(in thousands)			12/31/2025												12/31/2024												$ Change						% Change
Cost-plus-fee			$	2,692,741					59.8%						$	2,520,223					60.7%						$	172,518					6.8%
Fixed-price			1,209,510						26.8						1,078,115						25.9						131,395						12.2
Time-and-materials			605,469						13.4						558,360						13.4						47,109						8.4
Total			$	4,507,720					100.0%						$	4,156,698					100.0%						$	351,022					8.4%

Revenues by Prime or Subcontractor (Unaudited)

			Three Months Ended
(in thousands)			12/31/2025												12/31/2024												$ Change						% Change
Prime contractor			$	2,009,569					90.5%						$	1,862,098					88.7%						$	147,471					7.9%
Subcontractor			210,528						9.5						237,711						11.3						(27,183)						(11.4)
Total			$	2,220,097					100.0%						$	2,099,809					100.0%						$	120,288					5.7%

			Six Months Ended
(in thousands)			12/31/2025												12/31/2024												$ Change						% Change
Prime contractor			$	4,086,468					90.7%						$	3,742,517					90.0%						$	343,951					9.2%
Subcontractor			421,252						9.3						414,181						10.0						$	7,071					1.7
Total			$	4,507,720					100.0%						$	4,156,698					100.0%						$	351,022					8.4%

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Revenues by Expertise or Technology (Unaudited)

			Three Months Ended
(in thousands)			12/31/2025												12/31/2024												$ Change						% Change
Expertise			$	924,201					41.6%						$	925,900					44.1%						$	(1,699)					(0.2)%
Technology			1,295,896						58.4						1,173,909						55.9						121,987						10.4
Total			$	2,220,097					100.0%						$	2,099,809					100.0%						$	120,288					5.7%

			Six Months Ended
(in thousands)			12/31/2025												12/31/2024												$ Change						% Change
Expertise			$	1,911,092					42.4%						$	1,914,165					46.1%						$	(3,073)					(0.2)%
Technology			2,596,628						57.6						2,242,533						53.9						354,095						15.8
Total			$	4,507,720					100.0%						$	4,156,698					100.0%						$	351,022					8.4%

Contract Awards (Unaudited)

			Three Months Ended
(in thousands)			12/31/2025						12/31/2024						$ Change						% Change
Contract Awards			$	1,441,956					$	1,168,955					$	273,001					23.4%

			Six Months Ended
(in thousands)			12/31/2025						12/31/2024						$ Change						% Change
Contract Awards			$	6,440,640					$	4,508,590					$	1,932,050					42.9%

Note: Some percentages may vary slightly due to rounding.

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Reconciliation of Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS (Unaudited)

Adjusted net income and adjusted diluted EPS are non-GAAP performance measures. We define adjusted net income and adjusted diluted EPS as GAAP net income and GAAP diluted EPS, respectively, excluding intangible amortization expense and the related tax impact as we do not consider intangible amortization expense to be indicative of our operating performance. We believe that these performance measures provide management and investors with useful information in assessing trends in our ongoing operating performance, provide greater visibility in understanding the long-term financial performance of the Company, and allow investors to more easily compare our results to results of our peers. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

			(in thousands, except per share data)			Three Months Ended																		Six Months Ended
						12/31/2025						12/31/2024						% Change						12/31/2025						12/31/2024						% Change
			Net income, as reported			$	123,855					$	109,938					12.7%						$	248,665					$	230,115					8.1%
			Intangible amortization expense			35,984						32,442						10.9						72,017						50,449						42.8
			Tax effect of intangible amortization1			(9,092)						(8,197)						10.9						(18,196)						(12,746)						42.8
			Adjusted net income			$	150,747					$	134,183					12.3%						$	302,486					$	267,818					12.9%
						Three Months Ended																		Six Months Ended
						12/31/2025						12/31/2024						% Change						12/31/2025						12/31/2024						% Change
			Diluted EPS, as reported			$	5.59					$	4.88					14.5%						$	11.22					$	10.21					9.9%
			Intangible amortization expense			1.62						1.44						12.5						3.25						2.24						45.1
			Tax effect of intangible amortization1			(0.40)						(0.37)						8.1						(0.82)						(0.57)						43.9
			Adjusted diluted EPS			$	6.81					$	5.95					14.5%						$	13.65					$	11.88					14.9%
						FY26 Guidance Range
			(in millions, except per share data)			Low End												High End
			Net income, as reported			$	524					---						$	539
			Intangible amortization expense			142						---						142
			Tax effect of intangible amortization1			(36)						---						(36)
			Adjusted net income			$	630					---						$	645
						FY26 Guidance Range
						Low End												High End
			Diluted EPS, as reported			$	23.50					---						$	24.17
			Intangible amortization expense			6.37						---						6.37
			Tax effect of intangible amortization1			(1.62)						---						(1.62)
			Adjusted diluted EPS			$	28.25					---						$	28.92

(1)Calculation uses an assumed full year statutory tax rate of 25.3% on non-GAAP tax deductible adjustments for December 31, 2025 and 2024.

Note: Numbers may not sum due to rounding.

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Reconciliation of Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (Unaudited)

The Company views EBITDA and EBITDA margin, both of which are defined as non-GAAP measures, as important indicators of performance, consistent with the manner in which management measures and forecasts the Company's performance. EBITDA is a commonly used non-GAAP measure when comparing our results with those of other companies. We define EBITDA as GAAP net income plus net interest expense, income taxes, and depreciation and amortization expense (including depreciation within direct costs). We consider EBITDA to be a useful metric for management and investors to evaluate and compare the ongoing operating performance of our business on a consistent basis across reporting periods, as it eliminates the effect of non-cash items such as depreciation of tangible assets and amortization of intangible assets primarily recognized in business combinations, which we do not believe are indicative of our operating performance. EBITDA margin is EBITDA divided by revenue. These non-GAAP measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

						Three Months Ended																		Six Months Ended
			(in thousands)			12/31/2025						12/31/2024						% Change						12/31/2025						12/31/2024						% Change
			Net income			$	123,855					$	109,938					12.7%						$	248,665					$	230,115					8.1%
			Plus:
			Income taxes			37,664						27,294						38.0						78,956						62,988						25.4
			Interest income and expense, net			44,950						44,066						2.0						91,123						68,036						33.9
			Depreciation and amortization expense, including amounts within direct costs			56,098						51,564						8.8						112,436						87,614						28.3
			EBITDA			$	262,567					$	232,862					12.8%						$	531,180					$	448,753					18.4%
						Three Months Ended																		Six Months Ended
			(in thousands)			12/31/2025						12/31/2024						% Change						12/31/2025						12/31/2024						% Change
			Revenues, as reported			$	2,220,097					$	2,099,809					5.7%						$	4,507,720					$	4,156,698					8.4%
			EBITDA			262,567						232,862						12.8						531,180						448,753						18.4
			EBITDA margin			11.8%						11.1%												11.8%						10.8%

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Reconciliation of Net Cash Provided by Operating Activities to Net Cash Provided by Operating Activities Excluding MARPA and to Free Cash Flow (Unaudited)

The Company defines net cash provided by operating activities excluding MARPA, a non-GAAP measure, as net cash provided by operating activities calculated in accordance with GAAP, adjusted to exclude cash flows from CACI's MARPA for the sale of certain designated eligible U.S. government receivables up to a maximum amount of $350.0 million. Free cash flow is a non-GAAP liquidity measure and may not be comparable to similarly titled measures used by other companies. The Company defines free cash flow as net cash provided by operating activities excluding MARPA, less payments for capital expenditures. The Company uses these non-GAAP measures to assess our ability to generate cash from our business operations and plan for future operating and capital actions. We believe these measures allow investors to more easily compare current period results to prior period results and to results of our peers. Free cash flow does not represent residual cash flows available for discretionary purposes and should not be used as a substitute for cash flow measures prepared in accordance with GAAP.

						Three Months Ended												Six Months Ended
			(in thousands)			12/31/2025						12/31/2024						12/31/2025						12/31/2024
			Net cash provided by operating activities			$	154,195					$	126,042					$	325,260					$	160,703
			Cash used in (provided by) MARPA			-						(50,051)						(11,091)						(23,841)
			Net cash provided by operating activities excluding MARPA			154,195						75,991						314,169						136,862
			Capital expenditures			(16,044)						(9,924)						(33,058)						(21,400)
			Free cash flow			$	138,151					$	66,067					$	281,111					$	115,462
						FY26 Guidance
			(in millions)			Current						Prior
			Net cash provided by operating activities			$	810					$	795
			Cash used in (provided by) MARPA			-						-
			Net cash provided by operating activities excluding MARPA			810						795
			Capital expenditures			(85)						(85)
			Free cash flow			$	725					$	710

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