Earnings release
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Covista Reports First Quarter Fiscal Year 2027 Results; Raises Fiscal Year 2027 Revenue and Adjusted EPS Guidance Total enrollment up 7.6% YoY Revenue up 10.7% YoY Diluted earnings per share $1.95; Adjusted EPS $2.19, growth of 25.1% YoY Chief Financial Officer Robert Phelan announces planned retirement; will continue to serve until a successor is named FIRST QUARTER HIGHLIGHTS • Total student enrollment of 104,713, up 7.6% year-over-year, achieved 13th straight quarter of growth • Revenue of $511.5 million, up 10.7% year-over-year • Chamberlain University achieved 3rd straight quarter of total enrollment growth and achieved 17th straight quarter of pre-licensure BSN total enrollment growth • Walden University achieved 13th straight quarter of total enrollment growth, up 12.8% year-over- year, highest total enrollment in university history • Medical and Veterinary delivered total enrollment growth of 3.5% year-over-year • GAAP net income $67.4 million; adjusted EBITDA $131.2 million, up 17.1% year-over-year CAPITAL ALLOCATION • Repurchased $84 million of shares in the first quarter • Net leverage of 0.5x as of Sep. 30, 2026 • Repriced our $510 million Term Loan B, reducing the interest rate margin by 25 basis points to SOFR plus 2.00% INCREASED FISCAL YEAR 2027 GUIDANCE • Revenue in the range of $2,060 million to $2,095 million, or approximately 5.5% to 7% growth year-over-year, and from a previous range of $2,050 million to $2,090 million • Adjusted earnings per share in the range of $9.00 to $9.20, or approximately 9% to 11.5% growth year-over-year, and from a previous range of $8.90 to $9.15 Investor Contact: Jeremy Cohen Investor.Relations@covista.com Media Contact: Nick Lucido CovistaMedia@covista.com
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CHICAGO – October 29, 2026 /Businesswire/ Covista Inc. (NYSE: CVSA), America’s largest healthcare educator, today reported first quarter fiscal year 2027 results (ended Sep. 30, 2026). This quarter, the Company launched Purpose at Scale, its three-year strategy to train the next generation of healthcare professionals at industry-leading scale. Purpose at Scale is underpinned by operational excellence, platform extension, employer integration and a technology focus. “Purpose at Scale is delivering and all four pillars of the strategy are contributing to our momentum. Total enrollment grew for the 13th consecutive quarter, powering our double-digit revenue growth and continued margin expansion. On that strength, we are raising our fiscal 2027 guidance,” said Steve Beard, Chairman and Chief Executive Officer, Covista. “The demand behind our strategy is durable, and Covista is critical infrastructure for American healthcare. We serve an urgent need in the communities where care matters most, and by doing that well, we are strategically positioned to create lasting value for our shareholders.” Financial Highlights Selected financial data for the three months ended Sept. 30, 2026: • Revenue of $511.5 million increased 10.7% compared with the prior year • Operating income of $98.0 million, compared with $85.5 million in the prior year; adjusted operating income of $106.6 million, compared with $90.3 million in the prior year • Net income of $67.4 million, compared with $61.8 million in the prior year; adjusted net income of $75.8 million, compared with $64.9 million in the prior year • Diluted earnings per share of $1.95, compared with $1.67 in the prior year; adjusted earnings per share of $2.19, compared with $1.75 in the prior year • Adjusted EBITDA of $131.2 million, compared with $112.0 million in the prior year; adjusted EBITDA margin of 25.6%, compared with 24.2% in the prior year Business Highlights • Covista's strategic nursing collaboration with Advocate Health began enrolling students through Chamberlain University in Wisconsin. Building on that successful launch, the relationship is expanding to Chamberlain's three Chicago-area campuses. • Chamberlain University opened its Cincinnati and Salt Lake City campuses. The Company also announced it will open its 27th campus in Nashville, which is expected to begin classes in January 2027. • Walden University launched four new programs this quarter. Programs introduced heading into the 2026 academic year have already enrolled more than 2,000 students, demonstrating Walden’s speed to market in high-demand fields. • Covista released new analysis showing that students at Ross University School of Medicine and American University of the Caribbean School of Medicine passed the United States Medical Licensing Examination® (USMLE®) Step 1 on their first attempt at rates comparable to or higher than U.S. MD students with similar MCAT scores in most score bands.1 • Covista’s performance and responsible business practices continued to earn national recognition, including TIME’s America’s Growth Leaders 2027 and World’s Best Companies 2026, and Newsweek’s America’s Greenest Companies 2027 and America’s Greatest Companies 2026.
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Segment Highlights Chamberlain Three Months Ended $ in millions September 30, 2026 2025 % Change Revenue $192.4 $179.2 7.4% Operating Income $26.7 $25.6 4.4% Adj. Operating Income $26.7 $25.6 4.4% Adj. EBITDA $37.6 $35.1 7.1% Total Students (2) 40,351 39,846 1.3% • Total student enrollment increased 1.3% compared with the prior year, driven by growth in pre - licensure nursing. Walden Three Months Ended $ in millions September 30, 2026 2025 % Change Revenue $216.7 $190.0 14.1% Operating Income $63.6 $53.3 19.5% Adj. Operating Income $65.0 $56.1 16.0% Adj. EBITDA $71.9 $61.9 16.1% Total Students (2) 58,881 52,216 12.8% • Total student enrollment increased 12.8% compared with the prior year, driven by growth in healthcare and non-healthcare programs. Medical and Veterinary Three Months Ended $ in millions September 30, 2026 2025 % Change Revenue $102.5 $93.1 10.0% Operating Income $22.3 $16.7 33.0% Adj. Operating Income $22.3 $16.8 32.7% Adj. EBITDA $27.4 $21.4 27.9% Total Students (2) 5,481 5,297 3.5% • Total student enrollment increased 3.5% compared with the prior year, driven by growth in both medical and veterinary.
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Fiscal Year 2027 Outlook Covista raised its revenue guidance for fiscal year 2027 from a range of $2,050 million to $2,090 million, or approximately 5% to 7% growth year-over-year, to a range of $2,060 million to $2,095 million, or approximately 5.5% to 7% growth year-over-year. Covista also raised its adjusted earnings per share guidance from a range of $8.90 to $9.15, or approximately 8% to 11% growth year-over-year, to a range of $9.00 to $9.20, or approximately 9% to 11.5% growth year-over-year. Management Update Chief Financial Officer Robert Phelan has decided to retire from Covista after nearly seven years, as part of a planned transition. He will remain in this role until a successor is named, with no change in responsibilities. He will support the incoming Chief Financial Officer through a transition period. An active search is underway. Conference Call and Webcast Information Covista will hold a conference call to discuss its first quarter fiscal year 2027 results today at 4:00 p.m. CT (5:00 p.m. ET). The call can be accessed by dialing +1 877-407-6184 (U.S. participants) or +1 201-389-0877 (international participants) and stating “Covista earnings call” or by using conference ID:13762351. The call will be simulcast through the Covista investor relations website at: https://investors.covista.com/. Covista will archive a replay of the call for 30 days. To access the replay, dial +1 877-660-6853 (U.S.) or +1 201-612-7415 (international), conference ID: 13762351, or visit the Covista investor relations website. About Covista Covista (NYSE: CVSA) is America's largest healthcare educator, serving 100,000 students and supported by a community of 400,000 alumni across five accredited institutions. Through personalized, tech-enabled education powered by 10,000 faculty and colleagues, Covista expands access to healthcare careers and addresses the U.S. healthcare workforce shortage at scale. Covista is the parent company of American University of the Caribbean School of Medicine, Chamberlain University, Ross University School of Medicine, Ross University School of Veterinary Medicine and Walden University. For more information, visit Covista.com and follow us on LinkedIn, Instagram and YouTube. Cautionary Disclosure Regarding Forward-Looking Statements Certain statements contained in this release are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to
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any historical or current fact, which includes statements regarding Covista’s future growth. Forward- looking statements generally can be identified by the use of forward-looking terminology such as “future,” “believe,” “project,” “expect,” “anticipate,” “estimate,” “plan,” “intend,” “may,” “will,” “would,” “could,” “can,” “continue,” “preliminary,” “potential,” “range,” and similar terms. These forward-looking statements are subject to risk and uncertainties that could cause actual results to differ materially from those described in the statements. Important factors that could cause actual results to differ materially from the expectations expressed or implied by our forward-looking statements are disclosed in Item 1A. “Risk Factors,” of our Annual Report on Form 10-K. You should evaluate forward-looking statements in the context of these risks and uncertainties and are cautioned to not place undue reliance on such forward-looking statements. We caution you that these factors may not contain all of the factors that are important to you. We cannot assure you that we will realize the results, performance or developments we expect or anticipate or, even if substantially realized, that they will result in the consequences or affect us or our operations in the way we expect. All forward-looking statements are based on information available to us as of the date any such statements are made, and Covista assumes no obligation to publicly update or revise its forward- looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized, except as required by law. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of special items that may be incurred in the future, although these special items could be material to Covista's results in accordance with GAAP. 1. Comparison using university and AAMC data. Data is based on students who matriculated between 2021-2023 and sat for the USMLE Step 1 as of August 2026. Not all matriculants sat for the USMLE Step 1 exam. Students must successfully matriculate, complete the Medical Sciences curriculum and pass a school approved Medical Sciences Comprehensive Exam to sit for the USMLE Step 1 exam. 2. Represents total students attending sessions during each institution’s most recent enrollment period in Q1 FY 2027 and Q1 FY 2026. ###
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Covista Inc. Consolidated Balance Sheets (unaudited) (in thousands) September 30, June 30, 2026 2026 Assets: Current assets: Cash and cash equivalents $ 222,223 $ 406,316 Restricted cash 2,336 1,438 Accounts and financing receivables, net 241,469 169,561 Prepaid expenses and other current assets 86,542 75,126 Total current assets 552,570 652,441 Noncurrent assets: Property and equipment, net 324,706 302,649 Operating lease assets 197,511 204,364 Intangible assets, net 752,860 754,254 Goodwill 961,262 961,262 Other assets, net 139,364 137,738 Total noncurrent assets 2,375,703 2,360,267 Total assets $ 2,928,273 $ 3,012,708 Liabilities and shareholders' equity: Current liabilities: Accounts payable $ 96,383 $ 124,763 Accrued payroll and benefits 57,720 78,669 Accrued liabilities 126,214 94,364 Deferred revenue 365,096 259,125 Current operating lease liabilities 33,984 34,799 Current portion of long-term debt 5,100 5,100 Total current liabilities 684,497 596,820 Noncurrent liabilities: Long-term debt 495,131 657,750 Long-term operating lease liabilities 219,374 207,846 Deferred income taxes 69,320 61,782 Other liabilities 38,308 42,325 Total noncurrent liabilities 822,133 969,703 Total liabilities 1,506,630 1,566,523 Commitments and contingencies Total shareholders' equity 1,421,643 1,446,185 Total liabilities and shareholders' equity $ 2,928,273 $ 3,012,708
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Covista Inc. Consolidated Statements of Income (unaudited) (in thousands, except per share data) Three Months Ended September 30, 2026 2025 Revenue $ 511,534 $ 462,288 Operating cost and expense: Cost of educational services 220,759 200,767 Student services and administrative expense 192,585 175,734 Restructuring expense 163 310 Total operating cost and expense 413,507 376,811 Operating income 98,027 85,477 Interest expense (9,944) (11,090) Other income, net 1,416 2,486 Income from continuing operations before income taxes 89,499 76,873 Provision for income taxes (18,017) (15,811) Income from continuing operations 71,482 61,062 Discontinued operations: (Loss) income from discontinued operations before income taxes (5,420) 747 Benefit from income taxes 1,365 23 (Loss) income from discontinued operations (4,055) 770 Net income and comprehensive income $ 67,427 $ 61,832 Earnings (loss) per share: Basic: Continuing operations $ 2.11 $ 1.69 Discontinued operations $ (0.12) $ 0.02 Total basic earnings per share $ 1.99 $ 1.71 Diluted: Continuing operations $ 2.07 $ 1.65 Discontinued operations $ (0.12) $ 0.02 Total diluted earnings per share $ 1.95 $ 1.67 Weighted-average shares outstanding: Basic shares 33,951 36,111 Diluted shares 34,573 37,057
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Covista Inc. Consolidated Statements of Cash Flows (unaudited) (in thousands) Three Months Ended September 30, 2026 2025 Operating activities: Net income $ 67,427 $ 61,832 Loss (income) from discontinued operations 4,055 (770) Income from continuing operations 71,482 61,062 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation 8,181 8,293 Amortization of operating lease assets 7,018 7,216 Depreciation 10,862 10,296 Amortization of acquired intangible assets 1,394 2,805 Amortization and write-off of debt discount and issuance costs 660 1,145 Provision for credit losses 22,402 14,883 Deferred income taxes 8,798 54,413 Loss on disposals and impairments of property and equipment — 2 Loss (gain) on investments 218 (680) Changes in assets and liabilities: Accounts and financing receivables (94,219) (62,690) Prepaid expenses and other current assets (10,788) (29,841) Cloud computing implementation assets (3,292) (4,812) Accounts payable (13,536) 1,378 Accrued payroll and benefits (20,886) (24,359) Accrued liabilities 13,025 (12,287) Deferred revenue 107,928 109,082 Operating lease liabilities 10,548 (4,317) Other assets and liabilities (5,524) (960) Net cash provided by operating activities-continuing operations 114,271 130,629 Net cash used in operating activities-discontinued operations (233) (80) Net cash provided by operating activities 114,038 130,549 Investing activities: Capital expenditures (37,592) (16,023) Proceeds from sales of marketable securities — 100 Purchases of marketable securities — (100) Net cash used in investing activities (37,592) (16,023) Financing activities: Proceeds from exercise of stock options — 131 Employee taxes paid on withholding shares (16,203) (39,119) Proceeds from stock issued under Colleague Stock Purchase Plan 564 411 Repurchases of common stock for treasury (81,002) (7,595) Repayments under long-term debt obligations (163,000) — Payment of debt issuance costs — (3,333) Net cash used in financing activities (259,641) (49,505) Net (decrease) increase in cash, cash equivalents and restricted cash (183,195) 65,021 Cash, cash equivalents and restricted cash at beginning of period 407,754 201,164 Cash, cash equivalents and restricted cash at end of period $ 224,559 $ 266,185
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Covista Inc. Segment Revenue (unaudited) (in thousands) Three Months Ended September 30, Increase/(Decrease) 2026 2025 $ % Revenue: Chamberlain $ 192,400 $ 179,201 $ 13,199 7.4 % Walden 216,673 189,960 26,713 14.1 % Medical and Veterinary 102,461 93,127 9,334 10.0 % Consolidated $ 511,534 $ 462,288 $ 49,246 10.7 %
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Covista Inc. Non-GAAP Financial Measures and Reconciliations We believe that certain non -GAAP financial measures provide investors with useful supplemental information regarding the underlying business trends and performance of Covista’s ongoing operations as seen through the eyes of management and are useful for pe riod-over-period comparisons. We use these supplemental non -GAAP financial measures internally in our assessment of performance and budgeting process. However, these non -GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The following are non -GAAP financial measures used in the subsequent GAAP to non - GAAP reconciliation tables: Adjusted net income (most comparable GAAP measure: net income) – Measure of Covista’s net income adjusted for restructuring expense, amortization of acquired intangible assets, strategic advisory costs, loss on debt extinguishment, debt modification costs, U.S. tax benefit due to an increase in foreign -derived income , and loss (income) from discontinued operations. Adjusted earnings per share (most comparable GAAP measure: diluted earnings per share) – Measure of Covista’s diluted earnings per share adjusted for restructuring expense, amortization of acquired intangible assets, strategic advisory costs, loss on debt extinguishment, debt modification costs, U.S. tax benefit due to an increase in foreig n- derived income, and loss (income) from discontinued operations. Adjusted operating income (most comparable GAAP measure: operating income) – Measure of Covista’s operating income adjusted for restructuring expense, amortization of acquired intangible assets, strategic advisory costs, and debt modification costs. Adjusted EBITDA (most comparable GAAP measure: net income) – Measure of Covista’s net income adjusted for loss (income) from discontinued operations, interest expense, other income, net, provision for income taxes, depreciation, amortization of acquired intangible assets, amortization of cloud computing implement ation assets, stock-based compensation, restructuring expense, strategic advisory costs, and debt modification costs. Provision for income taxes, interest expense, and other income, net are not recorded at the reportable segments, and therefore, the segment adjusted EBITDA reconciliations begin with adjusted operating income. Free cash flow (most comparable GAAP measure: net cash provided by operating activities-continuing operations) – Defined as net cash provided by operating activities-continuing operations less capital expenditures. Net debt – Defined as total long-term debt principal less cash and cash equivalents. Net leverage – Defined as net debt divided by adjusted EBITDA. A description of special items in our non-GAAP financial measures described above are as follows: • Restructuring expense primarily related to workforce reductions and prior real estate consolidations at Covista’s home office. We do not include normal, recurring, cash operating expenses in our restructuring expense. • Amortization of acquired intangible assets. • Amortization of cloud computing implementation assets. • Strategic advisory costs related to expanding capabilities and bringing new capacities to market to further enhance our strategic position. We do not include normal, recurring, cash operating expenses in our strategic advisory costs. • Loss on debt extinguishment related to the amendment of the Revolver. • Debt modification costs related to refinancing our Term Loan B.
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• U.S. tax benefit due to an increase in foreign-derived income. • Loss (income) from discontinued operations includes activity from ongoing litigation costs and settlements related to prior divestitures.
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Covista Inc. Adjusted Operating Income (unaudited) (in thousands) Three Months Ended September 30, Increase/(Decrease) 2026 2025 $ % Chamberlain: Operating income $ 26,730 $ 25,608 $ 1,122 4.4 % Adjusted operating income $ 26,730 $ 25,608 $ 1,122 4.4 % Operating margin 13.9 % 14.3 % Adjusted operating margin 13.9 % 14.3 % Walden: Operating income $ 63,649 $ 53,269 $ 10,380 19.5 % Amortization of acquired intangible assets 1,394 2,805 (1,411) Adjusted operating income $ 65,043 $ 56,074 $ 8,969 16.0 % Operating margin 29.4 % 28.0 % Adjusted operating margin 30.0 % 29.5 % Medical and Veterinary: Operating income $ 22,251 $ 16,728 $ 5,523 33.0 % Restructuring expense — 44 (44) Adjusted operating income $ 22,251 $ 16,772 $ 5,479 32.7 % Operating margin 21.7 % 18.0 % Adjusted operating margin 21.7 % 18.0 % Covista(1): Operating income (GAAP) $ 98,027 $ 85,477 $ 12,550 14.7 % Restructuring expense 163 310 (147) Amortization of acquired intangible assets 1,394 2,805 (1,411) Strategic advisory costs 6,231 1,684 4,547 Debt modification costs 756 — 756 Adjusted operating income (non-GAAP) $ 106,571 $ 90,276 $ 16,295 18.1 % Operating margin (GAAP) 19.2 % 18.5 % Adjusted operating margin (non-GAAP) 20.8 % 19.5 % (1) Consolidated results include Home Office activities not allocated to segments.
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Covista Inc. Adjusted EBITDA (unaudited) (in thousands) Three Months Ended September 30, Increase/(Decrease) 2026 2025 $ % Chamberlain: Adjusted operating income (GAAP) $ 26,730 $ 25,608 $ 1,122 4.4 % Depreciation 6,094 5,375 719 Amortization of cloud computing implementation assets 2,386 1,527 859 Stock-based compensation 2,372 2,570 (198) Adjusted EBITDA (non-GAAP) $ 37,582 $ 35,080 $ 2,502 7.1 % Adjusted EBITDA margin (non-GAAP) 19.5 % 19.6 % Walden: Adjusted operating income (GAAP) $ 65,043 $ 56,074 $ 8,969 16.0 % Depreciation 1,784 1,940 (156) Amortization of cloud computing implementation assets 2,253 1,204 1,049 Stock-based compensation 2,782 2,653 129 Adjusted EBITDA (non-GAAP) $ 71,862 $ 61,871 $ 9,991 16.1 % Adjusted EBITDA margin (non-GAAP) 33.2 % 32.6 % Medical and Veterinary: Adjusted operating income (GAAP) $ 22,251 $ 16,772 $ 5,479 32.7 % Depreciation 2,823 2,820 3 Amortization of cloud computing implementation assets 931 411 520 Stock-based compensation 1,390 1,410 (20) Adjusted EBITDA (non-GAAP) $ 27,395 $ 21,413 $ 5,982 27.9 % Adjusted EBITDA margin (non-GAAP) 26.7 % 23.0 % Covista(1): Net income (GAAP) $ 67,427 $ 61,832 $ 5,595 9.0 % Loss (income) from discontinued operations 4,055 (770) 4,825 Interest expense 9,944 11,090 (1,146) Other income, net (1,416) (2,486) 1,070 Provision for income taxes 18,017 15,811 2,206 Depreciation and amortization 17,826 16,243 1,583 Stock-based compensation 8,181 8,293 (112) Restructuring expense 163 310 (147) Strategic advisory costs 6,231 1,684 4,547 Debt modification costs 756 — 756 Adjusted EBITDA (non-GAAP) $ 131,184 $ 112,007 $ 19,177 17.1 % Adjusted EBITDA margin (non-GAAP) 25.6 % 24.2 % (1) Consolidated results include Home Office activities not allocated to segments.
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Covista Inc. Adjusted Earnings (unaudited) (in thousands, except per share data) Three Months Ended September 30, 2026 2025 Net income (GAAP) $ 67,427 $ 61,832 Restructuring expense 163 310 Amortization of acquired intangible assets 1,394 2,805 Strategic advisory costs 6,231 1,684 Loss on debt extinguishment and debt modification costs 756 295 U.S. tax benefit due to an increase in foreign-derived income (2,031) — Income tax impact on non-GAAP adjustments(1) (2,152) (1,224) Loss (income) from discontinued operations 4,055 (770) Adjusted net income (non-GAAP) $ 75,843 $ 64,932 (1) Represents the income tax impact of non -GAAP continuing operations adjustments that is recognized in our GAAP financial statements. Three Months Ended September 30, 2026 2025 Diluted earnings per share (GAAP) $ 1.95 $ 1.67 Effect on diluted earnings per share: Restructuring expense 0.00 0.01 Amortization of acquired intangible assets 0.04 0.08 Strategic advisory costs 0.18 0.05 Loss on debt extinguishment and debt modification costs 0.02 0.01 U.S. tax benefit due to an increase in foreign-derived income (0.06) - Income tax impact on non-GAAP adjustments(1) (0.06) (0.03) Loss (income) from discontinued operations 0.12 (0.02) Adjusted earnings per share (non-GAAP) $ 2.19 $ 1.75 Diluted shares 34,573 37,057 Note: May not sum due to rounding. (1) Represents the income tax impact of non -GAAP continuing operations adjustments that is recognized in our GAAP financial statements.
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Covista Inc. Free Cash Flow (unaudited) (in thousands) Twelve Months Ended FY26 FY26 FY26 FY26 FY27 Q1 Q2 Q3 Q4 Q1 Net cash provided by operating activities-continuing operations (GAAP) $ 374,796 $ 427,890 $ 406,335 $ 470,796 $ 454,438 Capital expenditures (55,936) (59,880) (69,872) (77,696) (99,265) Free cash flow (non-GAAP) $ 318,860 $ 368,010 $ 336,463 $ 393,100 $ 355,173
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Covista Inc. Net Leverage (unaudited) (in thousands) Twelve Months Ended September 30, 2026 Covista: Net income (GAAP) $ 257,161 Loss from discontinued operations 20,634 Interest expense 44,289 Other income, net (6,108) Provision for income taxes 79,950 Depreciation and amortization 73,836 Stock-based compensation 41,104 Restructuring expense 6,182 Strategic advisory costs 23,109 Debt modification costs 756 Adjusted EBITDA (non-GAAP) $ 540,913 September 30, 2026 Total long-term debt principal $ 510,000 Less: Cash and cash equivalents (222,223) Net debt (non-GAAP) $ 287,777 Net leverage (non-GAAP) 0.5x