Company: ARRY
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001820721-25-000060
Chunk: 107

Company: Array Technologies, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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 to the three months ended March 31, 2024. The decrease was primarily due to certain assets acquired becoming fully amortized or fully impaired at December 31, 2024. 

Other (Expense) Income, Net

Other expense for the three months ended March 31, 2025 and 2024 totaled $23 thousand and $0.8 million, respectively, and consisted primarily of other non-income taxes and miscellaneous income/expense.

Interest Income

Consolidated interest income for the three months ended March 31, 2025 decreased by $0.4 million, or 10%, compared to the three months ended March 31, 2024, primarily as a result of lower yields on our cash management program.

Interest Expense 

Consolidated interest expense for the three months ended March 31, 2025 decreased by $0.9 million, or 10%, compared to the three months ended March 31, 2024, primarily due to lower interest rates on our variable rate obligations.

Income Tax Expense (Benefit)

Consolidated income tax expense for the three months ended March 31, 2025 increased by $5.2 million, or 401%, compared to the three months ended March 31, 2024. The Company recorded income tax expense of $6.5 million and $1.3 million for the three months ended March 31, 2025 and 2024, respectively. 

Our effective tax rate was 28.1% and 37.6% for the three months ended March 31, 2025 and 2024, respectively. Tax expense for the three months ended March 31, 2025, was favorably impacted by lower profits in non-US jurisdictions and additional tax credits recorded during the period. Additionally, tax expense of $1.0 million related to equity-based compensation, was recorded discretely. Tax expense for the three months ended March 31, 2024 was unfavorably impacted by higher income reported in non-U.S. jurisdictions and tax expense of $0.4 million related to equity-based compensation recorded discretely.

36

Liquidity and Capital Resources

Cash Flows (in thousands)

Three Months Ended March 31,20252024Net cash (used in) provided by operating activities$(13,059)$47,502 Net cash used in investing activities(2,352)(2,386)Net cash used in financing activities(1,725)(4,575)Effect of