CLSHIGH SIGNALFINANCIAL10-K

CLS delivered exceptional financial performance with net income nearly doubling to $832.5M and revenue growing 28.5% to $12.4B, demonstrating strong operational leverage and business momentum.

The dramatic 94.5% surge in net income significantly outpacing the 28.5% revenue growth indicates substantial margin expansion and operational efficiency gains. This exceptional performance, combined with strong cash generation and balance sheet growth, signals CLS has achieved meaningful scale advantages in its business model.

Comparing 2026-02-27 vs 2025-03-03View on EDGAR →
FINANCIAL ANALYSIS

CLS demonstrated outstanding financial performance across all key metrics, with revenue growing 28.5% to $12.4B while net income nearly doubled to $832.5M, indicating powerful operational leverage. The company maintained strong liquidity with cash increasing 40.7% to $595.6M and operating cash flow growing 39.2% to $659.5M, while strategically investing in growth through a 51.5% increase in R&D spending. The proportional growth in current assets and liabilities alongside inventory expansion suggests controlled scaling to support the revenue surge, positioning CLS for continued growth momentum.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+94.5%
$428.0M$832.5M

Net income grew 94.5% — bottom-line growth signals improving overall business health.

Operating Income
P&L
+73.7%
$599.3M$1.0B

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

R&D Expense
P&L
+51.5%
$78.0M$118.2M

R&D investment increased 51.5% — signals commitment to future product development, though near-term margin impact.

Gross Profit
P&L
+44.5%
$1.0B$1.5B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Cash & Equivalents
Balance Sheet
+40.7%
$423.3M$595.6M

Cash position surged 40.7% — strong cash generation or capital raise providing significant financial cushion.

Operating Cash Flow
Cash Flow
+39.2%
$473.9M$659.5M

Operating cash flow surged 39.2% — exceptional cash generation, highest quality earnings signal.

Current Liabilities
Balance Sheet
+30.4%
$3.0B$3.9B

Current liabilities surged 30.4% — significant near-term obligations; verify ability to meet short-term debt.

Revenue
P&L
+28.5%
$9.6B$12.4B

Revenue growing 28.5% — solid top-line momentum, watch margins for quality of growth.

Current Assets
Balance Sheet
+25.7%
$4.5B$5.7B

Current assets grew 25.7% — improving short-term liquidity or inventory/receivables build.

Inventory
Balance Sheet
+24.3%
$1.8B$2.2B

Inventory built 24.3% — monitor whether demand supports this build or if write-downs may follow.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-03-03
ADDED
The number of the registrant's Common Shares outstanding as of the close of business on February 19, 2026 was 114,967,854 .
Management's Discussion and Analysis of Financial Condition and Results of Operations 49 Item 7A.
Federal Reserve System, the average daily exchange rate was U.S.$1.00 = C$1.3973.
Our principal executive offices and global headquarters are located at 5140 Yonge Street, Suite 1900, Toronto, Ontario, Canada M2N 6L7.
We operate a network of sites and design centers strategically located in North America, Asia, and Europe.
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REMOVED
The number of the registrant's Common Shares outstanding as of the close of business on February 20, 2025 was 115,959,118 .
Management's Discussion and Analysis of Financial Condition and Results of Operations 52 Item 7A.
Federal Reserve System, the average daily exchange rate was U.S.$1.00 = C$1.3699.
policies or legislation; product liability/warranty claims; compliance with customer-driven policies and standards, and third-party certification requirements; compliance with governmental laws, regulations, and obligations; compliance with employment laws and regulations; litigation and proceedings; changes in accounting standards; potential unenforceability of judgments; ESG initiatives; costs related to reporting requirements applicable to U.S.
domestic issuers; Risks Related to our Common Shares volatility in market price; determination not to repurchase Common Shares for cancellation; vulnerability to take-over or tender offer; and General Risk Factors negative publicity.
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