Item 2. Management’s Discussion and Analysis
Item 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read together with our condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report and consolidated financial statements and related notes appearing in our 2025 Annual Report. This MD&A contains forward-looking statements. See the Cautionary Note Regarding Forward-Looking Statements at the beginning of this Quarterly Report for important information regarding such statements, including risks and uncertainties that could cause actual results to differ materially from those expressed or implied. We undertake no obligation to publicly update or revise any forward-looking statements except as may be required by law.
All dollar amounts are in USD thousands except share amounts and per share data and as otherwise noted.
OVERVIEW
The Company operates a diversified portfolio of service-based businesses whose operations benefit substantially from utilizing our enabling technology platform. A substantial portion of our revenue is derived from commissions received by our residential real estate brokerages which provide a full suite of brokerage and adjacent services (such as mortgage, title, and content creation) to our real estate agents and brokers. Our real estate agents and brokers affiliate their real estate licenses with us and operate their businesses utilizing our cloud-based technology platform to enhance their real estate businesses and optimize efficiencies. In May 2026, we acquired NextHome, a franchised real estate brokerage. Through NextHome, we now serve independent real estate professionals and brokerages who operate under the NextHome franchise system, broadening the range of affiliation models through which agents and brokers can access our ecosystem of services and support. Our enabling and innovative technology platform is a robust suite of cloud-based applications and software services tailored for our real estate agents, brokers, and professionals and targets business operations such as customer relationship management, marketing, client services, and brokerage functionalities. We succeed when our real estate professionals succeed, and we remain focused on being the most agent-centric business on the planet – built by agents, built for agents.
MARKET CONDITIONS AND INDUSTRY TRENDS
Our performance is closely tied to housing market activity, which is influenced by economic conditions such as employment, consumer confidence, mortgage availability, interest rates, and the balance of supply and demand. Periods of economic growth and lower interest rates generally support higher home sales activity, while rising rates, affordability constraints, increased unemployment, or broader economic slowdowns may reduce transaction volumes and pricing. Regulatory developments, geopolitical events, and shifts in consumer sentiment can also affect housing demand.
In the first six months of 2026, U.S. home sales increased 2.8% compared to the same period in 2025, and home sales prices increased 1.8%, according to the National Association of Realtors (“NAR”). Inventory levels remain constrained, at 4.6 months of supply, consistent with inventory levels in June 2025. Our forecasting models continue to reflect minimal growth, informed by historical trends, seasonality and the current macroeconomic conditions.
In this environment, we believe the Company is positioned for growth with a strong base of agents, an efficient cloud-based operating model, and low fixed costs.
16
Table of Contents
Legal Environment
See Part II, Item 1 of this Quarterly Report for a discussion of the current legal environment and how such environment could potentially impact our business, results of operations, cash flows and/or financial condition.
KEY BUSINESS METRICS
Management uses our results of operations, financial condition, cash flows, and key business metrics related to our business and industry to evaluate our performance and make strategic decisions.
The following table outlines the key business metrics that we periodically review to track the Company’s performance:
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Performance:
Agent NPS
69
77
69
78
Agent count
87,338
82,704
87,338
82,704
Real estate sales transactions
132,497
118,612
224,095
208,255
Real estate sales volume
$ 60,479,784
$ 52,477,798
$ 101,227,566
91,118,882
Other real estate transactions
22,410
20,955
41,230
38,970
Real estate per transaction cost
$ 525
$ 621
$ 598
$ 670
Revenues
$ 1,449,548
$ 1,308,877
$ 2,455,089
$ 2,263,783
Gross profit
$ 98,797
$ 92,654
$ 174,144
$ 168,789
Operating income (loss)
$ 1,641
($ 2,376)
($ 7,147)
($ 12,752)
Consolidated adjusted EBITDA (1)
$ 25,700
$ 11,201
$ 29,753
13,356
(1) Consolidated adjusted EBITDA is a non-U.S. GAAP financial measure. For a definition, reconciliation to net income (loss), and discussion of why management believes this measure is useful to investors, see “Non-U.S. GAAP Financial Measures”.
Agent net promoter score (“aNPS”)
The Company utilizes aNPS as a metric to measure agent satisfaction. aNPS is calculated based on responses to a periodic survey in which agents are asked, on a scale of 0 to 10, how likely they are to recommend our company to a fellow real estate professional.
We believe an aNPS above 50 is indicative of excellent agent satisfaction. For both the three and six months ended June 30, 2026, our aNPS was 69, compared to 77 and 78, respectively, for the same periods in 2025.
Agent count
We believe our ability to attract and retain a diverse and professional agent base is a key driver of our long-term success. While our organic agent base has experienced continued pressure amidst a challenging macroeconomic environment , we remain deeply focused on the retention and support of our agents and teams across all levels of production. The scale of our agent base remains subject to factors beyond our control, including elevated mortgage rates, suppressed transaction volumes, and evolving industry practices. Despite these headwinds, we continue to prioritize a comprehensive value proposition that supports agent productivity, operational efficiency, and long-term professional growth for our entire network.
The number of agents increased in the first six months of 2026, compared to the same period in 2025, primarily due to the addition of agents in connection with the NextHome acquisition completed during the second quarter of 2026. We remain committed to retaining our agents in the U.S., Canada, and internationally through the execution of our growth strategies and the end-to-end suite of services we offer our agents.
Real estate sales transactions and volume
Real estate sales transactions are based on the side (buyer or seller) of each real estate transaction and are recorded upon the closing of a purchase or sale of a home in which our agents and brokers represented the buyer or seller, respectively. Transaction volume represents the total sales value for all transactions and is influenced by several market factors, including, but not limited to, the pricing and quality of our services and market conditions that affect home sales, such as macroeconomic factors, economic growth, or contraction, local inventory levels, mortgage interest rates, and seasonality. The number of real estate transactions and volume are key drivers of our revenue and profitability.
17
Table of Contents
Our real estate sales transactions and volume typically fluctuate with changes in the market’s existing home sales transactions as reported by NAR; however, company-specific initiatives influence the transaction volume and productivity of our agents. For the three and six months ended June 30, 2026, compared to the same periods in 2025, our real estate sales transactions increased 12% and 8%, respectively. For the three and six months ended June 30, 2026, compared to the same periods in 2025, transaction volume increased 15% and 11%, respectively. The improvements in transactions and volume are due to increased agent productivity and increased home sale prices.
Other real estate transactions
Other real estate transactions are recorded for leases, rentals and referrals that are undertaken by our agents and brokers. Other real estate transactions for the three and six months ended June 30, 2026 increased compared to the same periods in 2025. Other real estate transactions reflect the full breadth of services that our agents and brokers generate beyond traditional home sales transactions.
Real estate per transaction cost
Real estate per transaction cost is measured as general and administrative, sales and marketing, and technology and development expenses resulting from our services that directly support our agents and brokers, divided by total transactions (real estate sales and other). Real estate per transaction cost decreased 15% and 11% for the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to operational efficiency gains from higher real estate transactions and reduced personnel expenses, employee stock-based compensation expenses, and marketing expenses. We believe real estate per transaction cost provides useful information to investors because it measures the operating efficiency and scalability of our platform on a per-transaction basis.
Revenues
Revenues substantially represent the commission revenue earned by and the Company for closed brokerage real estate transactions in addition to fees paid to the Company by agents. The Company’s revenues increased 11% and 8% for the three and six months ended June 30, 2026, respectively, compared to same periods in 2025, primarily due to higher home sales prices in North America, increased international production, and improved productivity in North America.
Gross profit
Gross profit increased to $98.8 million and $174.1 million in the three and six months ended June 30, 2026, respectively. Gross profit increased in 2026 due to increased revenues, partially offset by increased agent commissions, productivity awards, and other agent-related costs due to agent commission capping.
Operating Income (Loss)
Operating income (loss), in the three and six months ended June 30, 2026, improved when compared to the same periods in 2025. The improvements reflect increased revenues and actions taken to reduce operating costs in the second half of 2025, partially offset by increased legal expenses and accruals in connection with the Company’s ongoing efforts to resolve litigation matters, including the NAR settlement and other claims.
Consolidated Adjusted EBITDA
Management reviews consolidated adjusted EBITDA, which is a non-U.S. GAAP financial measure, to understand and evaluate our core operating performance. For the three and six months ended June 30, 2026, consolidated adjusted EBITDA increased by $14.5 million and $16.4 million, respectively, compared to the same periods in 2025. The increases in consolidated adjusted EBITDA reflect improvements in operating results related to actions taken to reduce operating costs in 2025, which offset increased agent commission capping.
18
Table of Contents
RESULTS OF OPERATIONS
The following table reflects the results of each of our operations during the three and six months ended June 30, 2026 and 2025:
Three Months Ended
Three Months Ended
Change 2026
June 30, 2026
June 30, 2025
vs. 2025
Statement of Operations Data:
Revenues
$ 1,449,548
$ 1,308,877
11%
Commissions and other agent-related costs
1,350,751
1,216,223
11%
Gross profit
98,797
92,654
7%
Operating expenses
General and administrative expenses
71,575
74,076
(3)%
Technology and development expenses
18,425
18,093
2%
Sales and marketing expenses
2,821
2,861
(1)%
Litigation contingency
4,335
-
-
Total operating expenses
97,156
95,030
2%
Operating income (loss)
1,641
(2,376)
169%
Other (income) expense
Other (income) expense, net
(657)
(760)
(14)%
Equity in (income) losses of unconsolidated affiliates
(8)
207
104%
Total other (income) expense, net
(665)
(553)
20%
Income (loss) before income tax expense
2,306
(1,823)
226%
Income tax (benefit) expense
4,999
468
(968)%
Net income (loss)
(2,693)
(2,291)
(18)%
Six Months Ended
Six Months Ended
Change 2026
June 30, 2026
June 30, 2025
vs. 2025
Statement of Operations Data:
Revenues
$ 2,455,089
$ 2,263,783
8%
Commissions and other agent-related costs
2,280,945
2,094,994
9%
Gross profit
174,144
168,789
3%
Operating expenses
General and administrative expenses
135,788
140,947
(4)%
Technology and development expenses
36,020
34,898
3%
Sales and marketing expenses
5,148
5,696
(10)%
Litigation contingency
4,335
-
-
Total operating expenses
181,291
181,541
0%
Operating income (loss)
(7,147)
(12,752)
44%
Other (income) expense
Other (income) expense, net
(925)
(1,703)
46%
Equity in (income) losses of unconsolidated affiliates
122
127
4%
Total other (income) expense, net
(803)
(1,576)
(49)%
Income (loss) before income tax expense
(6,344)
(11,176)
43%
Income tax (benefit) expense
1,447
2,139
32%
Net income (loss)
(7,791)
(13,315)
41%
Commissions and Other Agent-Related Costs
For the three and six months ended June 30, 2026, commissions and other agent-related costs increased compared to the same periods in 2025, primarily due to increased agent commission capping. Commissions and other agent-related costs include sales commissions, revenue share and stock-based compensation paid to our agents.
General and Administrative Expenses
For the three and six months ended June 30, 2026, general and administrative expenses decreased compared to the same periods in 2025, due to decreased employee-related expenses, partially offset by increased litigation expenses. General and administrative expenses include costs related to wages, employee stock-based compensation, and other general overhead expenses.
19
Table of Contents
Technology and Development Expenses
For the three and six months ended June 30, 2026, technology and development expenses increased compared to the same periods in 2025, primarily due to increased technology expenses related to agent support. These expenses include employee-related costs and other expenses for the maintenance and development of the technology used by both our agents and our employees.
Sales and Marketing Expenses
For the three and six months ended June 30, 2026, sales and marketing expenses decreased compared to the same periods in 2025, due to efficiencies gained from our CRM of choice program in the U.S. and Canada residential real estate market.
Litigation Contingency
For the three and six months ended June 30, 2026, we recorded a litigation contingency expense reflecting a new accrual recorded in connection with the Tuccori Settlement based on the preliminary court approval granted in May 2026. Litigation contingency expense represents accruals for probable and estimable losses related to ongoing legal matters. See Note 11 – Commitments and Contingencies to the unaudited condensed consolidated financial statements for additional information regarding the Tuccori Settlement
Legal Costs non-recurring
For both the three months and six months ended June 30, 2026, we incurred legal costs of $4,485 driven by non-recurring costs incurred in connection with strategic corporate development initiatives. These costs are non-recurring in nature and not reflective of ongoing core operations and we did not incur such costs in 2025.
Other (Income) Expense, Net
For the three months ended June 30, 2026, total other (income) expense, net increased primarily due to lower losses in equity investments compared to the same period in 2025. For the six months ended June 30, 2026, total other (income) expense, net decreased primarily due to lower interest income when compared to the same period in 2025. Total other (income) expense, net includes interest income earned on cash and cash equivalents, and (earnings) losses related to equity investments.
Income Tax (Benefit) Expense
The Company’s provision for income taxes was an expense of $5.0 million and an expense of $0.5 million for the three months ended June 30, 2026 and 2025, respectively, which represented effective tax rates of 217% and (26%), respectively. The expense for the three months ended June 30, 2026 was primarily driven by the pre-tax income for the period, stock-based compensation shortfalls and non-deductible executive compensation.
The Company’s provision for income tax expense (benefit) amounted to $1.4 million and $2.1 million for the six months ended June 30, 2026 and 2025, respectively, which represented effective tax rates of (23%) and (19%), respectively. The effective tax rate differs from our statutory rates in both periods primarily due to foreign and domestic mix of earnings, and stock-based compensation.
BUSINESS SEGMENT DISCLOSURES
Management evaluates segment performance based on revenue, segment adjusted EBITDA, and operating income (loss). See Note 7 – Segment Information to the unaudited condensed consolidated financial statements for additional information regarding our business segments. The following table reflects the results of each of our reportable segments during the three and six months ended June 30, 2026 and 2025:
20
Table of Contents
Three Months Ended
Three Months Ended
Change 2026
June 30, 2026
June 30, 2025
vs. 2025
Statement of Operations Data:
Revenues
North American Realty
$ 1,403,046
$ 1,276,487
10%
International Realty
46,352
32,293
44%
Other Affiliated Services
686
708
(3)%
Corporate expenses and other
(536)
(611)
12%
Total Consolidated Revenues
$ 1,449,548
$ 1,308,877
11%
Segment Adjusted EBITDA (1)
North American Realty
$ 30,726
$ 19,784
55%
International Realty
(1,315)
(3,859)
66%
Other Affiliated Services
(188)
(2,291)
92%
Corporate expenses and other
(3,523)
(2,433)
(45)%
Total Segment Adjusted EBITDA (1)
$ 25,700
$ 11,201
129%
Operating Income (Loss)
North American Realty
$ 7,875
$ 7,111
11%
International Realty
(1,821)
(4,209)
57%
Other Affiliated Services
(255)
(2,359)
89%
Corporate expenses and other
(4,158)
(2,919)
(42)%
Total Consolidated Operating Income (Loss)
$ 1,641
($ 2,376)
169%
(1) Segment adjusted EBITDA is a non-U.S. GAAP financial measure. For a definition, reconciliation to net income (loss), and discussion of why management believes this measure is useful to investors, see “Non-U.S. GAAP Financial Measures”.
Six Months Ended
Six Months Ended
Change 2026
June 30, 2026
June 30, 2025
vs. 2025
Statement of Operations Data:
Revenues
North American Realty
$ 2,368,150
$ 2,199,535
8%
International Realty
86,504
63,950
35%
Other Affiliated Services
1,544
1,535
1%
Corporate expenses and other
(1,109)
(1,237)
10%
Total Consolidated Revenues
$ 2,455,089
$ 2,263,783
8%
Segment Adjusted EBITDA (1)
North American Realty
$ 40,689
$ 27,519
48%
International Realty
(3,736)
(5,474)
32%
Other Affiliated Services
(318)
(3,746)
92%
Corporate expenses and other
(6,882)
(4,943)
(39)%
Total Segment Adjusted EBITDA (1)
$ 29,753
$ 13,356
123%
Operating Income (Loss)
North American Realty
$ 6,264
$ 3,287
91%
International Realty
(4,837)
(6,129)
21%
Other Affiliated Services
(449)
(4,002)
89%
Corporate expenses and other
(8,125)
(5,908)
(38)%
Total Consolidated Operating Income (Loss)
($ 7,147)
($ 12,752)
44%
(1) Segment adjusted EBITDA is a non-U.S. GAAP financial measure. For a definition, reconciliation to net income (loss), and discussion of why management believes this measure is useful to investors, see “Non-U.S. GAAP Financial Measures”.
21
Table of Contents
North American Realty revenues increased 10% and 8% in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to increases in agent productivity and home sale prices in the U.S., partially offset by lower real estate transactions in Canada. North American Realty adjusted EBITDA as well as operating income (loss) improved in the three and six months ended June 30, 2026 compared to the same periods of 2025 due to increased revenues, and lower operating costs, which offset increased commissions and other agent-related costs as a result of increased agent commission capping.
International Realty revenue increased 44% and 35% in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025, primarily due to increased real estate transactions driven by increased productivity in previously launched markets. International Realty adjusted EBITDA and operating income (loss) improved in the three and six months ended June 30, 2026, compared to the same periods in 2025, primarily due to increased revenues and continued expense management.
Other Affiliated Services revenue decreased 3% and increased 1% in the three and six months ended June 30, 2026, respectively, compared to the same periods in 2025. Other Affiliated Services adjusted EBITDA and operating loss improved in the three and six months ended June 30, 2026, compared to the same periods in 2025, due to lower employee-related costs.
Corporate expenses and other contain the costs incurred to operate the Company.
NON-U.S. GAAP FINANCIAL MEASURES
To supplement our consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we use consolidated adjusted EBITDA and segment adjusted EBITDA, non-U.S. GAAP financial measures, to understand and evaluate our core operating performance. These non-U.S. GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP.
We define consolidated adjusted EBITDA as net income (loss), excluding other income (expense), net, income tax benefit (expense), depreciation, amortization, impairment charges (as applicable), litigation contingency, legal costs non-recurring, stock-based compensation expense, stock option expense, and other items that are not core to the operating activities of the Company. Segment adjusted EBITDA is defined consistently, excluding other income (expense), income tax benefit (expense), depreciation, amortization, impairment charges (as applicable), litigation contingency, legal costs non-recurring, stock-based compensation expense, stock option expense, and other non-core items. We believe these measures provide useful information about our financial performance, help identify underlying trends that could otherwise be masked by excluded expenses, and allow for greater transparency with respect to key metrics used by management for financial and operational decision-making.
Limitations of these measures compared to net income (loss), the most directly comparable U.S. GAAP measure include:
● Consolidated adjusted EBITDA and segment adjusted EBITDA exclude stock-based compensation expenses related to our agent growth incentive program and stock option expense, which have been and will continue to be for the foreseeable future, significant recurring expenses in our business and an important part of our compensation strategy; and
● Consolidated adjusted EBITDA and segment adjusted EBITDA exclude certain recurring, non-cash charges such as depreciation of fixed assets, amortization of intangible assets and impairment charges related to these long-lived assets, as applicable, and, although these are non-cash charges, the assets being depreciated, amortized, or impaired may have to be replaced in the future.
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Net income (loss)
($ 2,693)
($ 2,291)
($ 7,791)
($ 13,315)
Total other (income) expense, net
(665)
(553)
(803)
(1,576)
Income tax (benefit) expense
4,999
468
1,447
2,139
Depreciation and amortization
2,245
2,272
4,567
4,833
Legal costs non-recurring
4,485
-
4,485
-
Litigation contingency
4,335
-
4,335
-
Stock-based compensation expense (1)
12,102
9,703
21,175
17,821
Stock option expense
892
1,602
2,338
3,454
Consolidated adjusted EBITDA
$ 25,700
$ 11,201
$ 29,753
$ 13,356
(1) This includes agent growth incentive stock-based compensation expense.
22
Table of Contents
LIQUIDITY AND CAPITAL RESOURCES
Our primary sources of liquidity are our cash and cash equivalents on hand and cash flows generated from our business operations. Our ability to generate sufficient cash flow from operations or to access certain capital markets, including banks, is necessary to fund our operations and capital expenditures, repurchase our common stock, and meet obligations as they become due.
Currently, our primary use of cash on hand is to sustain and grow our business operations, including, but not limited to, making commission and revenue share payments to agents and brokers and cash outflows for operating expenses, share repurchases, and dividend payments. In addition, the Company has no known material cash requirements as of June 30, 2026 relating to capital expenditures, commitments, or human capital (except as passthrough commissions to agents and brokers concurrent with settled real estate transactions), other than cash payments due pursuant to litigation settlement agreements, which may be paid in installments over time. For information regarding the Company’s expected cash requirement related to litigation settlement agreements, see Note 11 – Commitments and Contingencies to the unaudited condensed consolidated financial statements.
We believe that our existing balances of cash and cash equivalents and cash flows expected to be generated from our operations will be sufficient to satisfy our operating requirements for at least the next twelve months. Our future capital requirements will depend on many factors, including our level of investment in technology, our rate of growth into new markets, and cash used to repurchase shares of the Company’s common stock. Our capital requirements may be affected by factors which we cannot control such as the changes in the residential real estate market, interest rates, industry practice changes in light of the NAR settlement relating to the antitrust litigation, and other monetary and fiscal policy changes to the manner in which we currently operate. In order to support and achieve our future growth plans, we may need or seek advantageously to obtain additional funding through equity or debt financing. There can be no assurance such financing will be available on terms acceptable to us or at all. If we raise funds by issuing equity securities, dilution to our stockholders may result. We believe that our current operating structure will facilitate sufficient cash flows from operations to satisfy our expected long-term liquidity requirements beyond the next twelve months.
Net Working Capital
Net working capital is calculated as the Company’s total current assets less its total current liabilities. The following table presents our net working capital as of June 30, 2026 and December 31, 2025:
June 30, 2026
December 31, 2025
Current assets
$ 391,395
$ 304,868
Current liabilities
(258,318)
(199,701)
Net working capital
$ 133,077
$ 105,167
As of June 30, 2026, net working capital increased by $27.9 million, compared to net working capital as of December 31, 2025 due to an increase in cash and restricted cash and net accounts receivable, due to the timing of receivable collections, and a decrease in the litigation contingency, due to the payments made in June 2026, such increases were partially offset by an increase in commissions payable accruals.
Cash Flows
The following table presents our cash flows for the six months ended June 30, 2026 and 2025:
Six Months Ended June 30,
2026
2025
Net cash provided by operating activities
$ 59,339
$ 75,926
Net cash used in investing activities
(11,065)
(17,207)
Net cash used in financing activities
(16,111)
(44,766)
Effect of changes in exchange rates on cash, cash equivalents and restricted cash
(2,569)
2,393
Net change in cash, cash equivalents and restricted cash
$ 29,594
$ 16,346
For the six months ended June 30, 2026, net cash provided by operating activities decreased ($16.6) million compared to the same period in 2025, primarily driven by the payments made for the litigation contingency.
For the six months ended June 30, 2026, cash used in investing activities decreased due to lower cash used for investments in affiliates and purchases of property and equipment, partially offset by increased cash used for the purchase of a business compared to the same period in 2025.
23
Table of Contents
For the six months ended June 30, 2026, net cash flows used in financing activities decreased compared to the same period in 2025, due to no stock repurchases in the first half of 2026 compared to $29.9 million of stock repurchases for the same period in 2025.
Acquisitions
Acquisitions have not been a material element of our ongoing business, but we continue to seek opportunities to expand and enhance our portfolio of solutions, access new revenue streams, or otherwise complement or accelerate the growth of our existing operations . We may fund acquisitions or investments in complementary businesses with various sources of capital, including existing cash balances and cash flow from operations.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in the 2025 Annual Report, which provides a description of our critical accounting policies. There were no changes to critical accounting policies or estimates as reflected in our 2025 Annual Report. For additional information regarding our critical accounting policies and estimates, see the Critical Accounting Policies and Estimates section of Part II, Item 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2025 Annual Report.
Item 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in our exposures to market risk since December 31, 2025. For details on the Company’s market risks relating to interest rates and foreign currency exchange rates, see Part II, Item 7A Quantitative and Qualitative Disclosures About Market Risk in our 2025 Annual Report.