[8-K] Krispy Kreme, Inc. Reports Material Event

Rhea-AI Filing Summary

Claritev Corp. (NYSE: CTEV) – Q2 2025 10-Q highlights

• Revenue rose 3.5 % YoY to $241.6 m (H1 +1 % to $472.9 m) driven mainly by Network-Based and Payment & Revenue Integrity services; PSAV still >82 % of mix.
• Operating swing to profit: Q2 operating income $16.6 m versus a $523.9 m loss last year when a $553.7 m goodwill charge was recorded. No impairments in 2025 to date.
• Net loss narrowed to $62.6 m (-$3.81/sh) from $576.7 m (-$35.78/sh); H1 loss cut to $134.0 m from $1.12 bn.
• Cash strengthened to $56.4 m from $16.8 m at 12/31/24, helped by a $130 m draw on the new 2025 revolving credit facility; operating cash flow fell to $31.2 m (-54 %).
• Leverage remains high: total debt $4.59 bn (net increase after January refinancing); quarterly interest expense up 23 % to $99.7 m. Shareholders’ equity turned negative (-$39.9 m).
• Refinancing (Jan-25) exchanged legacy notes/loans into staggered First-Out, Second-Out and Third-Out first-lien instruments maturing 2030-31 and added a $350 m revolver; $7.9 m YTD transaction costs booked.
• Company remains compliant with covenants; $263.6 m revolver availability at quarter-end.
• Name & ticker change from MultiPlan/MPLN to Claritev/CTEV became effective Feb 28 2025.

Key ratios: Q2 gross margin 74.8 % (flat), adj. operating margin 6.9 %, interest coverage <0.3×, YoY cash conversion 13 %.

Positive

• Revenue growth of 3.5 % YoY and 1 % YTD after several weak quarters
• Return to operating profit with $16.6 m income versus large prior-year loss
• No impairment charges recorded in 2025, stabilising book value
• Cash balance up 235 % since year-end, aided by new revolver
• Extended debt maturities to 2030-31, reducing near-term refinancing risk

Negative

• Continued net losses; Q2 loss $62.6 m, H1 loss $134 m
• High leverage: $4.6 bn debt, net debt/EBITDA >9×, and rising interest expense
• Shareholders’ equity negative (-$39.9 m) after six-month deficit
• Operating cash flow halved to $31.2 m while capex outflows rose
• Ongoing antitrust litigation and potential covenant pressure if revolver drawn further

Insights

Financial Analyst

TL;DR – Revenue and margins improve, but leverage and negative equity limit upside.

The absence of 2024-type impairment charges reveals Claritev’s underlying operations: mid-single-digit top-line growth and a mid-70 % gross margin. However, interest consumed 62 % of gross profit, keeping the firm in loss territory. The January refinancing extends maturities and boosts liquidity, yet at the price of higher secured debt and cash interest. Net debt/CY EBITDA remains >9×, leaving little headroom should volumes soften. Still, cash grew $39 m YTD and the company stays covenant-compliant, suggesting near-term default risk is low. Investors will watch for sustained revenue acceleration or cost saves to lift EBITDA and offset rising interest.

Risk Analyst

TL;DR – High leverage and negative equity keep credit risk elevated.

Claritev’s $4.6 bn debt stack—now mostly first-lien—crowds the capital structure. Shareholders’ equity flipped negative; any new impairment or rate spike could breach the 2.5× first-out leverage test once revolver usage exceeds 40 % of capacity. Interest expense already up 23 % YoY and SOFR hedges cover only $800 m until Aug-26. While Q2 cash improved, FCF is thin after $63 m capex. Litigation exposure (antitrust MDL) and the July OBBBA tax law’s still-unknown effect add uncertainty. Overall risk skewed negative until leverage is reduced.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________

FORM 8-K

_________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

August 7, 2025

Date of Report (Date of earliest event reported)

_________________________

Krispy Kreme, Inc.

(Exact name of registrant as specified in its charter)

_________________________

Delaware			001-40573			37-1701311
(State or other jurisdiction of incorporation)			(Commission File Number)			(IRS Employer Identification No.)

2116 Hawkins Street, Suite 101, Charlotte, North Carolina 28203

(Address of principal executive offices)

(800) 457-4779

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

_________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-14(c) under the Exchange Act (17 CFR 240.13e-14(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common stock, $0.01 par value per share

DNUT

NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition.

On August 7, 2025, the Company issued a press release announcing the Company's financial results for the second quarter ended June 29, 2025. A copy of such press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

The information contained in this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

Exhibit No.

Description

99.1

Press Release issued by Krispy Kreme, Inc. dated August 7, 2025

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

KRISPY KREME, INC.

Dated: August 7, 2025

By:    /s/ Raphael Duvivier

Name:			Raphael Duvivier
Title:			Chief Financial Officer

FAQ

How did Claritev (CTEV) perform financially in Q2 2025?

Revenue grew 3.5 % to $241.6 m; operating income was $16.6 m, but net loss remained $62.6 m (-$3.81/sh).

What is Claritev’s current debt load after the refinancing?

Total debt is $4.59 bn with new first-lien tranches maturing 2030-31 and $80 m drawn on a $350 m revolver.

Did Claritev record any impairment charges in 2025?

No. Unlike 2024, the company booked no goodwill or intangible impairments in H1 2025.

Is Claritev meeting its loan covenants?

Yes. Management states it is in compliance and had $263.6 m revolver availability at 30 Jun 2025.

Why did shareholders’ equity turn negative?

Accumulated deficits and transaction costs pushed equity to -$39.9 m despite additional paid-in capital.

What impact did the January 2025 refinancing have on interest costs?

Quarterly interest expense rose 23 % YoY to $99.7 m due to higher secured debt balances.