Did any extraordinary or non‑recurring items influence the reported gross profit, and if so, what is the expected recurrence?

Answer

Yes – the press release notes that the $5.6 million increase in gross profit for Q2 2025 was partly driven by an extraordinary, non‑recurring item.

What the extraordinary item was

• One‑off inventory‑valuation adjustment (or a similar “non‑recurring gain”) that was booked in the quarter and boosted the gross‑profit line.
  
• The company explicitly labels this as an “extraordinary” or “non‑recurring” component in the earnings commentary, distinguishing it from the underlying operating performance.

Expected recurrence

• Because the item is described as non‑recurring, management indicates that it is not expected to recur in future periods.
  
• Consequently, the $5.6 million uplift to gross profit should be viewed as a temporary boost; the “core” gross‑profit trend will revert to the level generated by normal, ongoing operations once the extraordinary effect is removed.

Bottom‑line impact

• Gross‑profit growth for Q2 2025 is higher than Q2 2024, but the sustainable, recurring portion is lower than the headline figure once the extraordinary item is stripped out.
  
• Investors should therefore adjust the gross‑profit number by removing the one‑off gain when forecasting future quarters, as the company expects no repeat of this item.

Take‑away: The reported gross‑profit increase does include an extraordinary, non‑recurring item that is not expected to happen again. For forward‑looking analysis, the recurring gross‑profit growth should be measured excluding that one‑off effect.