On February 3, 2025, the Company completed the sale of its Cylance assets and related liabilities to Arctic Wolf Networks, Inc. (“Arctic Wolf”) for $160.0 million of cash, subject to certain adjustments of approximately $42.1 million, and 5.5 million common shares of Arctic Wolf. The Company received $79.8 million on closing and was owed a delayed cash payment one year following the closing of $38.1 million which was paid on February 10, 2026. 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 years ended February 28, 2025 and February 29, 2024:



	For the Years Ended
	February 28, 2025		February 29, 2024
Revenue	$	71.2	$	93.6
Cost of sales	42.8		55.7

Gross margin	28.4		37.9

Operating expenses
Research and development	30.4		46.0
Sales and marketing	42.5		59.9
General and administrative	15.7		21.7
Amortization	20.5		27.2

Impairment of goodwill	—		18.9
Gain on disposal of discontinued operation	(10.4)		—
	98.7		173.7
Operating loss	(70.3)		(135.8)
Provision for income taxes	0.2		—
Net loss from discontinued operations, net of tax	$	(70.5)	$	(135.8)

Basic loss per share from discontinued operations	$	(0.12)	$	(0.23)
Diluted loss per share from discontinued operations	$	(0.12)	$	(0.23)

The discontinued operations had no acquisition of property, plant and equipment for the years ended February 28, 2025 and February 29, 2024. The following table represents the amortization and stock-based compensation (representing the significant non-cash operating item) of the discontinued operations for the years ended February 28, 2025 and February 29, 2024: