Discontinued Operations

9 Months Ended

Nov. 30, 2025

Disposal Groups, Including Discontinued Operations, Disclosure

DISCONTINUED OPERATIONS

In the third quarter of fiscal 2025, the Company determined that the assets and liabilities constituting its Cylance business, which consisted of the Company’s artificial intelligence (“AI”) and machine learning-based cybersecurity solutions previously acquired on February 21, 2019, met the criteria requiring classification as held for sale as specified in Accounting Standards Codification (“ASC”) 360 Property, Plant and Equipment (“ASC 360”) and met the criteria for presentation as discontinued operations under ASC 205 Presentation of Financial Statements.

On February 3, 2025, the Company completed the sale of its Cylance endpoint security assets and related liabilities to Arctic Wolf Networks, Inc. (“Arctic Wolf”). In connection with the sale, the Company recognized a gain on disposal of discontinued operations before taxes of $10.4 million in the fourth quarter of fiscal 2025.

The financial results of Cylance are presented as “loss from discontinued operations, net of tax” in the Consolidated Statements of Operations and have been removed from the presentation of results from continuing operations. The following table represents the financial results of Cylance for the three and nine months ended November 30, 2024:


	Three Months Ended		Nine Months Ended
	November 30, 2024			November 30, 2024
Revenue	$	18.6		$	59.8
Cost of sales	10.8			35.8

Gross margin	7.8			24.0

Operating expenses
Research and development	8.4			25.8
Sales and marketing	11.6			36.0
General and administrative	3.8			12.7
Amortization	6.8			20.4


	30.6			94.9
Operating loss	(22.8)			(70.9)
Provision for income taxes	—			—
Loss from discontinued operations, net of tax	$	(22.8)		$	(70.9)

Basic loss per share from discontinued operations	$	(0.04)		$	(0.12)
Diluted loss per share from discontinued operations	$	(0.04)		$	(0.12)

The discontinued operations had nil in acquisition of property, plant and equipment for the three and nine months ended November 30, 2024. The following table represents the amortization and stock-based compensation (representing the significant non-cash operating item) of the discontinued operations for the three and nine months ended November 30, 2024:


	Three Months Ended		Nine Months Ended
	November 30, 2024			November 30, 2024
Amortization	$	6.8		$	20.4
Stock based compensation	1.7			5.0