Palo Alto Networks Inc. (NASDAQ:PANW)

Current Income Tax Expense

The current income tax expense demonstrates a consistent upward trajectory from 2020 to 2025. Starting at $44.3 million in 2020, it shows moderate increases through 2021 and 2022, followed by a more significant jump in 2023 to $114.1 million. The trend then accelerates sharply, reaching $444.5 million in 2024 and further surging to $811.5 million in 2025. This pattern suggests growing taxable income or changes in tax liabilities recognized as current expenses.

Deferred Income Tax Expense

The deferred income tax expense displays considerable volatility over the observed periods. Initially negative in 2020 through 2022, indicating deferred tax benefits ranging from -$9.1 million to -$3.1 million, the figure turns positive to $12.5 million in 2023. Subsequently, there is a pronounced and substantial reversal with a large deferred tax benefit of -$2,033.8 million in 2024, followed by a less severe but still significant benefit of -$349.7 million in 2025. The substantial swings suggest changes in deferred tax assets or liabilities, possibly reflecting timing differences, tax credits, or valuation allowances affecting deferred tax calculations.

Provision for Income Taxes

The overall provision for income taxes, which consolidates current and deferred expenses, mirrors the volatility observed in deferred taxes. Between 2020 and 2023, the provision grows steadily from $35.2 million to $126.6 million, reflecting a gradual increase aligned with current tax expenses. However, in 2024, the provision experiences a dramatic decline to a net benefit of -$1,589.3 million, driven primarily by the large deferred tax benefit. This is followed by a rebound in 2025 to a provision of $461.8 million. Such fluctuations indicate significant tax-related adjustments affecting reported tax expense, which may impact net income and require further investigation regarding their underlying causes.

The analysis of the annual financial data reveals significant volatility and fluctuations in various tax-related percentages over the reviewed periods.

Federal statutory income tax rate

The federal statutory income tax rate remains stable at 21% throughout the years, indicating no change in this fundamental tax parameter.

State taxes, net of federal tax benefit

State taxes as a percentage show a downward trend from 3% in 2020 to 1.3% in 2021, followed by a gradual increase to 3.8% in 2025. This pattern suggests variability in state tax impacts or changes in the state tax structure or benefits over the period.

Non-U.S. operations

Percentages related to non-U.S. operations show extreme volatility. Starting at a very high 667.5% in 2020, it sharply declines to negative values in 2021 and 2022 (-3.1% and -16.5%, respectively), then rises again to positive levels (9.7% in 2023 and tapering down to 2.2% in 2025). This fluctuation indicates significant changes or adjustments in international tax positions or foreign operations’ profitability and tax effects.

Change in valuation allowance

The change in valuation allowance is highly volatile and negative in most years, with exceptionally large negative values in 2020 (-714.1%), 2022 (-158.7%), and 2024 (-341.9%). Positive values appear only in 2023 (15.5%) and 2025 (1.1%). These wide swings suggest substantial shifts in the realizability assessments of deferred tax assets, reflecting considerable uncertainty or reassessments in tax asset valuations.

U.S. effect of foreign deferred tax assets

This item is only reported in the last two years, showing a high proportion of 175.8% in 2024 and decreasing to 11.2% in 2025, indicating a significant impact of foreign deferred tax assets on U.S. tax expense during this period.

Share-based compensation

The percentage impact of share-based compensation fluctuates widely: negative in 2020 (-5.1%) and then turning positive 5% in 2021, rising sharply to 83.6% in 2022. It again becomes negative in subsequent years, reaching -16.9% in 2024 and -5.5% in 2025. This pattern implies considerable variability in how share-based compensation influences the effective tax rate.

Tax credits

Tax credits show strong positive values initially (17.9% in 2020, 9.9% in 2021, and 41.5% in 2022), suggesting beneficial tax effects, but then become negative from 2023 onward, reaching -6.2% in 2025. This shift indicates changing utilization or availability of tax credits, negatively affecting the effective tax rate later.

Non-deductible expenses

Non-deductible expenses remain relatively low and stable, with minor negative values in early years (-3.9% in 2020) transitioning to small positive percentages in recent years (1.5% in 2024 and 1.2% in 2025), indicating a mild upward trend in non-deductibility impacting tax expense.

Other, net

This category shows limited and inconsistent data, mostly near zero, with minimal impact on the effective tax rate, reflecting miscellaneous tax-related elements with negligible influence.

Effective income tax rate

The effective income tax rate is marked by extreme fluctuations and instability. It is negative for most periods, indicating net tax benefits or losses (e.g., -15.2% in 2020, -7.3% in 2021, and -28.9% in 2022), but turns positive in 2023 (22.4%) and 2025 (28.9%). Notably, an exceptionally low rate of -160.8% occurs in 2024, representing a highly unusual tax benefit or adjustment. Such erratic behavior reflects significant changes in the underlying tax factors, including valuation allowances, foreign operation effects, and share-based compensation impacts.

Accruals and Reserves

The accruals and reserves show a fluctuating trend with an initial increase from 116,500 thousand USD in 2020 to 141,100 thousand USD in 2022, followed by a decline in 2023 to 88,500 thousand USD and then a gradual increase again to 132,100 thousand USD by 2025.

Operating Lease Liabilities

Data begins from 2022 with recorded liabilities of 86,000 thousand USD, rising steadily to 132,600 thousand USD in 2024 before slightly decreasing to 126,500 thousand USD in 2025.

Deferred Revenue

Deferred revenue demonstrates strong growth throughout the period, increasing year-over-year from 272,500 thousand USD in 2020 to 1,266,100 thousand USD in 2025, indicating expanding customer commitments or advanced billings.

Net Operating Loss Carryforwards

Net operating loss carryforwards exhibit growth from 348,000 thousand USD in 2020 to a peak of 759,100 thousand USD in 2022, then declining substantially to 551,000 thousand USD in 2023, with a moderate recovery to 620,000 thousand USD in 2025.

Tax Credits

Tax credits increased from 179,600 thousand USD in 2020 reaching 338,900 thousand USD in 2023, followed by a sharp decline to 175,300 thousand USD in 2024 and a partial recovery to 222,300 thousand USD in 2025.

Capitalized Research Expenditures

Reported from 2023 onward, capitalized research expenditures grow substantially from 354,800 thousand USD in 2023 to 895,400 thousand USD in 2025, indicating significant investment in R&D activities.

Share-Based Compensation

Share-based compensation shows a consistent upward trend, rising from 33,700 thousand USD in 2020 to 105,600 thousand USD in 2025, reflecting increasing employee incentive costs.

Fixed Assets and Intangible Assets

These assets peak in 2021 at 1,789,600 thousand USD and demonstrate a gradual decrease each year thereafter, falling to 1,561,400 thousand USD by 2025, suggesting possible asset disposals or amortization exceeding additions.

Interest Carryforward

Data is limited, with values only in 2021 and 2022, rising from 19,200 thousand USD to 55,800 thousand USD, after which no data is reported.

Gross Deferred Tax Assets

There is a steady increase in gross deferred tax assets from 2,409,100 thousand USD in 2020 to 4,929,400 thousand USD in 2025, indicating growing future tax benefits.

Valuation Allowance

The valuation allowance is a negative figure which increases in magnitude up to 2023 (-3,586,700 thousand USD), then sharply decreases in 2024 and 2025 to -243,400 and -278,100 thousand USD respectively, possibly due to reassessment of realizability of tax assets.

Deferred Tax Assets

Net deferred tax assets rise moderately from 168,700 thousand USD in 2020 to 313,000 thousand USD in 2023, then surge dramatically to over 4 million thousand USD in 2024 and 4.65 million thousand USD in 2025, driven by changes in valuation allowance and tax asset recognition.

U.S. Effect of Foreign Deferred Tax Assets

Reported only in 2024 and 2025, showing negative effects amounting to -1,728,500 thousand USD and -1,921,600 thousand USD respectively, indicating adjustments related to foreign tax positions impacting the U.S. tax accounting.

Operating Lease Right-of-Use Assets

Data begins in 2023 with negative values, indicating liabilities or amortization against right-of-use assets, ranging from -73,500 thousand USD in 2023 to -115,800 thousand USD in 2024, slightly decreasing in 2025 to -108,200 thousand USD.

Deferred Contract Costs

These costs show a steady increase in the negative balance from -130,800 thousand USD in 2020 to -212,500 thousand USD in 2025, denoting growing deferred expenses associated with contracts.

Other Deferred Tax Liabilities

The other deferred tax liabilities have fluctuated moderately, peaking at -58,200 thousand USD in 2023 and ending at -74,100 thousand USD in 2025, indicating some variability in deferred tax obligations.

Deferred Tax Liabilities

The overall deferred tax liabilities increase significantly over time, from -159,700 thousand USD in 2020 to a large jump in 2024 and 2025, reaching -2,086,900 thousand USD and -2,316,400 thousand USD respectively, highlighting increased tax obligations expected in future periods.

Net Deferred Tax Assets (Liabilities)

This measure moves from a small positive balance early on to a slight negative balance of -5,400 thousand USD in 2023, before turning strongly positive in 2024 (2,011,300 thousand USD) and further growth in 2025 (2,334,900 thousand USD), reflecting significant improvements in net deferred tax positions.

The analysis of the deferred tax assets and liabilities over the provided periods reveals significant developments starting from the fiscal year ending July 31, 2024.

Deferred Tax Assets

Deferred tax assets were not reported or were negligible until the fiscal year ending July 31, 2024, where they first appeared at a value of approximately US$23.1 million. Following this initial recognition, the deferred tax assets experienced a substantial increase, reaching approximately US$2.42 billion by July 31, 2025. This substantial rise indicates a significant change in the company’s tax position or accounting estimates, possibly reflecting temporary differences or carryforwards that are expected to reduce taxable income in future periods.

Deferred Tax Liabilities

Deferred tax liabilities first appear in the data in the fiscal year ending July 31, 2024, at about US$28.1 million, peaking sharply to approximately US$387.7 million by July 31, 2025, before declining to roughly US$89.1 million. This fluctuation suggests changes in the timing differences associated with taxable income or adjustments in asset valuations impacting future tax obligations.

Overall, the emergence and rapid growth of both deferred tax assets and liabilities during the fiscal years 2024 and 2025 suggest the occurrence of significant tax-related events or changes in accounting policies relating to tax positions. The notable disparity in scale, with deferred tax assets substantially surpassing deferred tax liabilities by the end of the period, could imply that the company anticipates a larger favorable effect on future tax expenses.

The analysis of the reported and deferred income tax adjusted financial data reveals several noteworthy trends over the six-year period.

Total Assets

Reported total assets have shown consistent growth each year, increasing from approximately 9.07 billion USD in 2020 to about 23.58 billion USD in 2025. The adjusted total assets follow a very similar trajectory, though the values diverge slightly in 2024 and 2025 where adjusted assets are lower than reported assets, indicating adjustments likely related to deferred tax impacts that reduce asset values in later years. Overall, total assets more than doubled during the period under review.

Total Liabilities

Total liabilities, both reported and adjusted, have also trended upward continuously. Reported liabilities increased from 7.96 billion USD in 2020 to 15.75 billion USD in 2025 while adjusted liabilities rose similarly but remained slightly lower than reported figures starting in 2023. The narrowing gap between reported and adjusted liabilities over time suggests progressive recognition or adjustments affecting liabilities related to tax treatments. The growth in liabilities is significant but less pronounced percentage-wise than total assets.

Stockholders’ Equity

Reported stockholders’ equity exhibited volatility in the first three years, declining sharply from 1.10 billion USD in 2020 to 210 million USD in 2022 before rebounding strongly, reaching 7.82 billion USD in 2025. Adjusted equity mirrors this trend, though adjusted figures are consistently lower than reported amounts starting from 2023, reflecting tax-related adjustments impacting equity upward recognition. The substantial equity growth after 2022 indicates improving profitability and retained earnings accumulation.

Net Income (Loss)

The reported net income figures show initial losses in 2020 through 2022, with losses reducing from -267 million USD to -267 million USD across the period. A significant turnaround occurs in 2023, with positive reported net income of 439.7 million USD, followed by robust profits in 2024 and 2025, reaching 2.58 billion USD and 1.13 billion USD respectively. Adjusted net income reflects similar patterns but with consistently larger losses during the initial years and more moderate positive earnings than reported income during the profitable years. This divergence suggests tax adjustments significantly impact the reported earnings, smoothing income recognition over time.

In summary, the company’s financial position appears to be strengthening markedly in terms of asset growth and equity improvement, with liabilities also increasing but at a slower pace relative to assets. The transition from persistent losses to substantial profitability after 2022 is a key development, paralleled by corresponding tax-related adjustments that moderate net income and equity figures. The adjusted data indicates the effects of deferred taxes, which introduce differences from reported values but the overall upward operational and financial trends are clear.

Net Profit Margin Trends

The reported net profit margin exhibits a notable fluctuation over the periods analyzed. Initially negative at -7.83% in 2020, it worsened in 2021 to -11.72%, then improved substantially to a positive 6.38% in 2023, peaking at 32.11% in 2024 before declining to 12.3% in 2025. The adjusted net profit margin follows a similar pattern but remains more stable, with negative values until 2022 and positive but moderate increases from 2023 onward, reaching 8.5% by 2025.

Total Asset Turnover Behavior

The reported total asset turnover shows a gradual improvement from 0.38 in 2020 to 0.48 in 2023, indicating more efficient utilization of assets during this period. However, it declines afterward to 0.40 and 0.39 in 2024 and 2025, respectively. The adjusted total asset turnover closely mirrors this trend but maintains slightly higher values in the last two periods, suggesting adjusted data accounts for factors that improve measured efficiency.

Financial Leverage Patterns

Financial leverage demonstrates significant volatility. Reported leverage jumps substantially from 8.23 in 2020 to an extreme 58.35 in 2022, indicating increased debt or reduced equity base, then decreases sharply to 3.87 by 2024 and further to 3.01 in 2025. Adjusted leverage follows the same pattern but with even higher peaks in earlier years and remains elevated at 5.57 in 2024 before retreating to 3.85 in 2025. This suggests deleveraging efforts occurred post-2022.

Return on Equity (ROE) Dynamics

Reported ROE experiences dramatic negative values from 2020 through 2022, indicating losses or inefficiencies, reaching as low as -127.14% in 2022. There is a sharp positive reversal in 2023 (25.15%) and a peak at 49.86% in 2024, followed by a decline in 2025 to 14.49%. Adjusted ROE trends similarly but shows less extreme recovery, achieving 17.22% in 2024 and slightly decreasing to 14.29% in 2025, reflecting volatility in equity returns possibly driven by financial structure adjustments.

Return on Assets (ROA) Evolution

Reported ROA shows negative returns initially, with -2.95% in 2020 worsening to -4.87% in 2021, then improving steadily to a positive 3.03% by 2023 and peaking at 12.89% in 2024, before decreasing to 4.81% in 2025. The adjusted ROA remains negative through 2022 but less volatile and only rises modestly afterward, staying around 3% to 3.7% through 2023 to 2025, indicating consistent but moderate asset profitability when adjustments are accounted for.

Overall Insights

The data reveals a period of financial strain and volatility through 2022, with substantial negative profitability and extreme leverage. Following this, the company appears to have executed effective corrective measures inducing strong profit margins, improved asset utilization, and deleveraging especially demonstrated in 2023 and 2024. Adjusted figures suggest that underlying performance, once non-recurring or accounting impacts are removed, is more stable and less volatile. The rebound in returns, particularly ROE and ROA, indicates improved operational efficiency and financial health in the latter periods, despite a slight moderation in some metrics in 2025.

Reported Net Income (Loss)

The reported net income (loss) exhibits a fluctuating trend over the periods. Initially, there are substantial losses in 2020 and 2021, with the loss peaking at -498,900 thousand US dollars in 2021. This is followed by a reduction in loss in 2022, marking a value equivalent to the 2020 loss at -267,000 thousand. A significant positive turnaround occurs in 2023, with the company reporting a net income of 439,700 thousand US dollars, which then sharply increases to 2,577,600 thousand in 2024, before decreasing to 1,133,900 thousand in 2025. This pattern indicates improved profitability starting in 2023, although the income declines after the peak in 2024.

Adjusted Net Income (Loss)

The adjusted net income mirrors the direction of reported income but at generally higher losses during the negative periods and lower gains during profitable years. The loss reached its highest in 2021 at -511,300 thousand US dollars, slightly exceeding the reported net loss. Improvement occurs after 2021 with losses reducing up to 2022, followed by positive adjusted incomes from 2023 onward. Notably, the values are positive but substantially lower than reported net income in 2024 and 2025, suggesting adjustments reduce the magnitude of profitability demonstrated by reported figures.

Reported Net Profit Margin

The reported net profit margin follows a similar trend to the net income figures. The margin is negative in the first three years, declining to its lowest at -11.72% in 2021. It then turns positive in 2023, recording 6.38%, before sharply increasing to 32.11% in 2024, indicating strong profitability relative to revenue, and subsequently declines to 12.3% in 2025. This trajectory confirms a transition from loss-making to highly profitable performance, with the peak margin in 2024 emphasizing exceptional operational results.

Adjusted Net Profit Margin

The adjusted net profit margin is consistently slightly lower in absolute terms compared to the reported margin during both negative and positive periods. It starts at -8.1% in 2020, worsens to -12.01% in 2021, then improves to a small negative value in 2022. From 2023 onwards, it turns positive and increases gradually but modestly, reaching 8.5% by 2025. Unlike the sharp peak seen in the reported margin, the adjusted margin reflects more conservative profitability gains, indicating allowances for adjustments that temper the reported earnings quality.

Overall Analysis

The data reveals a company that experienced significant losses in the early periods, with a marked improvement beginning in 2023. The difference between reported and adjusted figures suggests the adjustments primarily affect earnings positively during loss years and reduce reported profits in profitable years. The sharp peak in reported profitability in 2024 is tempered in the adjusted results, highlighting underlying volatility or non-recurring items influencing reported earnings. The upward trajectory from loss to profit and improving margins points to successful operational or strategic changes yielding improved financial health from 2023 through 2025, though caution is warranted given the variability between reported and adjusted metrics.

Total Assets

Total assets showed a consistent upward trend over the six-year period. Reported total assets increased from approximately 9.07 billion USD in 2020 to about 23.58 billion USD in 2025. Similarly, adjusted total assets rose steadily from the same starting point, reaching approximately 21.15 billion USD in 2025. The adjusted total assets were slightly lower than reported total assets starting from 2023, indicating the effect of deferred income tax adjustments on the asset base.

Total Asset Turnover

Reported total asset turnover improved gradually from 0.38 in 2020 to a peak of 0.48 in 2023, suggesting increasing efficiency in using assets to generate revenue during this period. However, the ratio declined to 0.40 in 2024 and further to 0.39 in 2025, indicating a reduction in asset utilization efficiency in the most recent years. The adjusted total asset turnover followed a similar pattern but was consistently slightly higher than the reported figures in 2024 and 2025, recording 0.46 and 0.44 respectively. This suggests that when adjusting for deferred income tax, asset efficiency appears somewhat better in the later periods.

Insights

The data reflects significant asset growth accompanied by initial improvements in asset turnover, implying enhanced operational efficiency up to 2023. The subsequent decline in turnover ratios, despite growing asset base, may indicate challenges in maintaining revenue growth proportionate to asset expansion in the most recent years. The adjusted figures suggest deferred income tax considerations impact the asset base and efficiency metrics but do not materially alter the overall trend analysis.

Total Assets

The reported total assets show a consistent upward trend from July 31, 2020, through to the projected figures for July 31, 2025. Starting at approximately $9.07 billion in 2020, assets increase each year, reaching nearly $23.58 billion by 2025. Adjusted total assets exhibit a similar growth pattern but display slightly lower values from 2024 onwards, indicating adjustments that reduce the asset base by a moderate margin in the later years.

Stockholders’ Equity

Reported stockholders’ equity decreases sharply from about $1.10 billion in 2020 to $210 million in 2022, followed by a significant recovery reaching over $7.82 billion by 2025. The adjusted stockholders’ equity follows a comparable pattern, with a low of approximately $199 million in 2022 before increasing substantially, though the adjusted figures remain consistently lower than reported equity from 2024 onwards. This divergence in the later years suggests adjustments that reduce equity values in the financial statements.

Financial Leverage

Financial leverage, both reported and adjusted, shows considerable volatility over the period. Initially high leverage ratios around 8.2 in 2020 escalate sharply to extremely elevated levels in 2022 (58.35 reported, 61.64 adjusted), indicating a potential reduction in equity or increased liabilities relative to stockholders’ equity during that year. Subsequently, leverage decreases significantly to low levels by 2025 (reported 3.01, adjusted 3.85), implying a strengthening of the equity base relative to liabilities. The adjusted leverage values are generally higher than reported in the later years, reflecting the effect of adjustments on the equity and liability figures.

General Observations

The data reveals a period of instability centered around fiscal year 2022, characterized by a sharp decline in equity and an extreme increase in leverage, which recovers strongly in the following years. The adjustments applied to assets and equity, and consequently to financial leverage, become more pronounced from 2024 onwards, suggesting the recognition of deferred tax impacts or other accounting treatments that materially affect the financial position. Overall, the trends suggest an initial phase of financial strain or restructuring followed by a phase of robust balance sheet strengthening.

Net Income (Loss) Trends

The reported net income showed a significant negative position for the years 2020 through 2022, with losses peaking in 2021 at approximately -498,900 thousand USD. Starting in 2023, the company reversed this trend, reporting positive income of 439,700 thousand USD, which then surged substantially to 2,577,600 thousand USD in 2024 before declining to 1,133,900 thousand USD in 2025. The adjusted net income follows a similar trajectory, with losses marginally greater than the reported figures initially, turning positive in 2023, but displaying a more moderate increase and a steadier growth pattern through 2025 compared to the reported figures.

Stockholders’ Equity Movements

Reported stockholders’ equity declined sharply from 1,101,800 thousand USD in 2020 to a low of 210,000 thousand USD in 2022, indicating significant erosion of equity during this period. From 2023 onwards, there is a strong recovery and growth, with equity rising to 1,748,400 thousand USD and then accelerating sharply to 5,169,700 thousand USD in 2024 and further to 7,824,400 thousand USD in 2025. Adjusted stockholders’ equity follows a similar pattern but is consistently lower than the reported equity, particularly notable in 2024 and 2025, where the gap widens, suggesting adjustments that reduce equity values after tax considerations.

Return on Equity (ROE) Analysis

The reported ROE was deeply negative from 2020 through 2022, declining from -24.23% to a trough of -127.14%, reflecting significant losses relative to equity. However, a marked turnaround occurs in 2023 with a positive ROE of 25.15%, improving further to a peak of 49.86% in 2024, before dropping to 14.49% in 2025. Adjusted ROE mirrors this trend but shows more extreme negative values during the loss years (-25.27% to -135.87%) and a more conservative peak of 17.22% in 2024, reducing to 14.29% in 2025. This suggests that while profitability relative to equity improved markedly post-2022, adjustments for deferred tax and other items moderate the perceived returns.

Overall Observations

The data reflect a company undergoing considerable financial distress leading up to and including 2022, with significant losses impacting net income and equity. From 2023 onwards, a strong financial recovery is evident, with profitability and equity value improving substantially. The adjusted figures consistently show slightly worse losses and lower equity than the reported figures during the negative periods, but they indicate a steadier post-recovery growth, highlighting the impact of tax adjustments and deferred income tax considerations on the financial performance metrics. The volatility in ROE underscores the sensitivity of the company’s returns to these accounting adjustments and the scale of recovery after several challenging years.

The financial data indicates several key trends in reported and adjusted figures over the analyzed periods.

Net Income (Loss)

The reported net income exhibits significant volatility, with losses recorded in the initial three years, transitioning to positive income in the fourth year, and a notable peak in the fifth year before declining in the last year. Specifically, the loss deepened from -267,000 thousand USD in 2020 to -498,900 thousand USD in 2021, then improved to a loss of -267,000 thousand USD in 2022. From 2023 onwards, the company experienced positive net income, reaching a high of 2,577,600 thousand USD in 2024, then decreasing to 1,133,900 thousand USD in 2025. Adjusted net income follows a similar pattern but reflects slightly greater losses early on and a more moderate increase in later years. This adjustment results in a less volatile positive income in 2023, rising steadily through 2025.

Total Assets

Reported total assets show a consistent upward trajectory, increasing from approximately 9.07 billion USD in 2020 to 23.58 billion USD in 2025. Adjusted total assets closely track the reported figures but reveal a divergence beginning in 2024, with adjusted assets increasing at a slower rate. This divergence suggests some asset categories were excluded in adjusted figures, reducing the 2024 and 2025 values by approximately 2.4 billion and 2.42 billion USD respectively compared to reported assets.

Return on Assets (ROA)

Reported ROA indicates a trend from negative returns in the first three years to positive profitability starting in 2023, peaking substantially at 12.89% in 2024 before declining to 4.81% in 2025. Adjusted ROA remains negative in the initial years but demonstrates a steadier, more moderate improvement, moving to slightly above 3% in 2023, maintaining a similar level in 2024, and improving marginally to 3.71% in 2025. The discrepancies between reported and adjusted ROA highlight the impact of tax-related adjustments on the company's profitability metrics.

Overall, the company experienced a transition from losses to profitability over the period, with asset growth supporting operational expansion. The adjusted figures present a more tempered view of profitability and asset valuation, likely reflecting the influence of deferred income tax adjustments on financial performance assessment.