Alliance Laundry Holdings Inc. 10-K

Item 8. Financial Statements and Supplementary Data Index to Financial Statements: Page Report of Independent Registered Public Accounting Firm (PCAOB ID : 42 ) 66 Consolidated Balance Sheets as of December 31, 2025 and December 31, 2024 68 Consolidated Statements of Comprehensive Income for the years ended December 31, 2025, December 31, 2024 and December 31, 2023 69 Consolidated Statements of Stockholders’ Equity/(Deficit) for the years ended December 31, 2025, December 31, 2024 and December 31, 2023 70 Consolidated Statements of Cash Flows for the years ended December 31, 2025, December 31, 2024 and December 31, 2023 71 Notes to Consolidated Financial Statements 73 Schedule II - Valuation and Qualifying Accounts 117 66 Table of Contents Report of Independent Registered Public Accounting Firm To the Stockholders and the Board of Directors of Alliance Laundry Holdings Inc. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Alliance Laundry Holdings Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of comprehensive income, stockholders' equity/(deficit) and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and financial statement schedule listed in the Index at Item 15(b) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. Basis for Opinion These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 67 Table of Contents Product Warranty Liability Description of the Matter At December 31, 2025, the Company’s product warranty liability was $69.2 million. As more fully described in Notes 2 and 16 to the consolidated financial statements, the Company estimates and records provisions for future product warranty liability claims at the time of sale based on projected incident rates of occurrence and projected cost per incident. The Company estimates its product warranty liability based on the specific product type, product use, and warranty period, which generally ranges from one to seven years. Auditing the Company’s product warranty liability was complex due to the judgmental nature of management’s assumptions used to estimate the future commercial in-home product warranty liability for standard product warranty periods extending beyond three years, including the projected incident rates of occurrence and the projected cost per incident. In particular, there is a higher level of estimation uncertainty in determining the future projected incident rates of occurrence, which may not be reflective of historical incident rates or may not reflect product quality issues that have not yet been identified as of the financial statement date. Additionally, the projected cost per incident reflects management’s estimates of the future cost of replacement product parts, the cost of labor, and the amount of labor required to address the product warranty claim and changes in these estimates could have a material effect on the amount of product warranty liability recognized. How We Addressed the Matter in Our Audit To test the adequacy of the Company’s calculation of the product warranty liability, our substantive audit procedures included, among others, testing the accuracy and completeness of the underlying data used in the product warranty liability calculation and significant assumptions discussed above. We tested the categorization of claims within the product warranty liability calculation and tested the completeness and accuracy of the claims settled data. We compared the historical incident rates of occurrence by product type, using actual claims data, to the projected incident rates of occurrence. We also compared the projected cost per incident to the average cost per incident using actual claims data. We assessed the historical accuracy of management's estimates by comparing the product warranty liability in the prior year to the actual claims paid in the subsequent year. /s/ Ernst & Young LLP We have served as the Company’s auditor since 2017. Milwaukee, Wisconsin March 13, 2026 68 Table of Contents Alliance Laundry Holdings Inc. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) December 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 123,102 $ 154,682 Restricted cash 3,602 6,401 Restricted cash - for securitization investors 22,999 26,959 Accounts receivable (net of allowance for credit losses of $ 3,021 and $ 2,663 at December 31, 2025 and 2024 , respectively) 113,651 92,150 Inventories, net 146,039 133,494 Inventories, net - related parties 821 989 Accounts receivable, net - restricted for securitization investors 141,973 130,060 Equipment financing receivables, net 2,822 4,600 Equipment financing receivables, net - restricted for securitization investors 92,011 88,288 Prepaid expenses and other current assets 28,862 30,534 Total current assets 675,882 668,157 Equipment financing receivables, net 4,913 7,633 Property, plant, and equipment, net 265,250 248,341 Operating lease right-of-use assets 20,741 17,080 Equipment financing receivables, net - restricted for securitization investors 470,408 417,672 Deferred income tax asset 3,169 3,220 Debt issuance costs, net 3,461 2,793 Goodwill 684,230 666,580 Intangible assets, net 754,737 793,666 Other long-term assets 3,097 6,963 Total assets $ 2,885,888 $ 2,832,105 Liabilities and Stockholders' Equity/(Deficit) Current liabilities: Current portion of long-term debt $ 113 $ 20,896 Accounts payable 128,662 141,808 Accounts payable - related parties 1,852 1,338 Asset backed borrowings - owed to securitization investors 194,180 170,862 Current operating lease liabilities 5,927 5,502 Other current liabilities 153,592 138,259 Total current liabilities 484,326 478,665 Long-term debt, net 1,354,636 2,034,545 Asset backed borrowings - owed to securitization investors 424,406 382,910 Deferred income tax liability 169,355 171,103 Long-term operating lease liabilities 15,745 12,549 Other long-term liabilities 45,302 29,661 Total liabilities 2,493,770 3,109,433 Commitments and contingencies (see Note 24) Stockholders' equity/(deficit): Redeemable preferred stock, $ 0.01 par value, 100,000,000 shares authorized, no shares issued or outstanding — — Common stock, $ 0.01 par value, 2,000,000,000 shares authorized, 197,532,147 and 189,609,192 issued, respectively, and 197,532,147 and 125,290,718 , outstanding, respectively 1,975 1,896 Additional paid-in capital 509,369 189,911 (Accumulated deficit)/retained earnings ( 176,404 ) 31,527 Accumulated other comprehensive income/(loss) 57,178 ( 1,752 ) Treasury stock, at cost, 0 and 64,318,474 shares, respectively — ( 498,910 ) Total stockholders' equity/(deficit) 392,118 ( 277,328 ) Total liabilities and stockholders' equity/(deficit) $ 2,885,888 $ 2,832,105 The accompanying notes are an integral part of these consolidated financial statements. 69 Table of Contents Alliance Laundry Holdings Inc. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share amounts) December 31, 2025 December 31, 2024 December 31, 2023 Net revenues: Equipment, service parts and other $ 1,659,680 $ 1,459,746 $ 1,321,427 Equipment financing 49,557 48,694 43,727 Net revenues 1,709,237 1,508,440 1,365,154 Costs and expenses: Cost of sales 1,028,073 914,655 858,286 Cost of sales - related parties 7,322 6,218 4,466 Equipment financing expenses 31,738 36,316 29,310 Gross profit 642,104 551,251 473,092 Selling, general, and administrative expenses 324,458 266,444 237,108 Selling, general, and administrative expenses - related parties 280 300 300 Other costs — 494 — Total operating expenses 324,738 267,238 237,408 Operating income 317,366 284,013 235,684 Interest expense, net 150,501 132,001 123,397 Other expenses, net 28,831 23,376 7,832 Other expenses, net - related parties — 5,187 — Income before taxes 138,034 123,449 104,455 Provision for income taxes 36,279 25,130 16,226 Net income $ 101,755 $ 98,319 $ 88,229 Comprehensive income: Net income $ 101,755 $ 98,319 $ 88,229 Other comprehensive income/(loss): Foreign currency translation adjustment 59,122 ( 27,439 ) 6,620 Change in pension liability and other post-retirement benefits, net of taxes of $ 7 , ($ 24 ) and ($ 1,770 ) at December 31, 2025 , 2024 and 2023 , respectively ( 192 ) 71 4,949 Total other comprehensive income/(loss) 58,930 ( 27,368 ) 11,569 Comprehensive income $ 160,685 $ 70,951 $ 99,798 Net income per share attributable to common stockholders: Basic $ 0.57 $ 0.58 $ 0.52 Diluted $ 0.56 $ 0.56 $ 0.51 Weighted average number of common shares outstanding Basic 177,002 170,591 171,087 Diluted 181,443 174,331 173,642 Dividends declared per share of common stock $ — $ 5.28 $ — The accompanying notes are an integral part of these consolidated financial statements. 70 Table of Contents Alliance Laundry Holdings Inc. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY/(DEFICIT) (in thousands) Common Stock Paid-in Capital Treasury Stock (Accumulate d Deficit)/ Retained Earnings Accumulated Other Comprehensive Income/(loss) Total Stockholders' Equity/(Deficit) Balances at December 31, 2022 $ 1,893 $ 818,565 $ ( 478,510 ) $ 110,919 $ 14,047 $ 466,914 Net income — — — 88,229 — 88,229 Foreign currency translation adjustment — — — — 6,620 6,620 Change in pension liability and other post-retirement benefits, net — — — — 4,949 4,949 Exercise of stock options and taxes paid for net share settlement 1 ( 195 ) — — — ( 194 ) Exercise of stock options — 24 — — — 24 Repurchase of common stock — — ( 18,955 ) — — ( 18,955 ) Share-based compensation — 3,343 — — — 3,343 Balances at December 31, 2023 1,894 821,737 ( 497,465 ) 199,148 25,616 550,930 Net income — — — 98,319 — 98,319 Foreign currency translation adjustment — — — — ( 27,439 ) ( 27,439 ) Change in pension liability and other post-retirement benefits, net — — — — 71 71 Exercise of stock options and taxes paid for net share settlement 2 ( 1,140 ) — — — ( 1,138 ) Exercise of stock options — 111 — — — 111 Repurchase of common stock — — ( 1,445 ) — — ( 1,445 ) Dividends — — — ( 265,940 ) — ( 265,940 ) Return of capital — ( 634,060 ) — — — ( 634,060 ) Share-based compensation — 3,263 — — — 3,263 Balances at December 31, 2024 1,896 189,911 ( 498,910 ) 31,527 ( 1,752 ) ( 277,328 ) Net income — — — 101,755 — 101,755 Foreign currency translation adjustment — — — — 59,122 59,122 Change in other post-retirement benefits, net — — — — ( 192 ) ( 192 ) Exercise of stock options and taxes paid for net share settlement 20 ( 6,355 ) — ( 1,447 ) — ( 7,782 ) Exercise of stock options 10 5,687 — — — 5,697 Exercise of warrants 453 ( 453 ) — — — — Issuance of common stock — 500 — — — 500 Common stock issued pursuant to initial public offering, net of offering costs 244 496,788 — — — 497,032 Repurchase of common stock — — ( 6,205 ) — — ( 6,205 ) Share-based compensation — 19,519 — — — 19,519 Retirement of treasury stock ( 648 ) ( 196,228 ) 505,115 ( 308,239 ) — — Balances at December 31, 2025 $ 1,975 $ 509,369 $ — $ ( 176,404 ) $ 57,178 $ 392,118 The accompanying notes are an integral part of these consolidated financial statements. 71 Table of Contents Alliance Laundry Holdings Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) December 31, 2025 December 31, 2024 December 31, 2023 Cash flows from operating activities: Net income $ 101,755 $ 98,319 $ 88,229 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 93,701 90,169 88,704 Amortization and extinguishment of debt issuance costs 4,528 5,559 4,245 Amortization of original issue discount 6,202 2,620 1,620 Non-cash interest expense/(income) 10,299 ( 700 ) 6,480 Non-cash (gain)/loss on commodity & foreign exchange contracts, net ( 751 ) 657 52 Non-cash foreign exchange loss/(gain), net 25,152 ( 4,654 ) 486 Non-cash stock-based compensation 19,519 3,263 3,343 Non-cash (gain)/loss for pension and post-retirement benefit plans ( 192 ) 71 7,362 Loss on sale of property, plant, and equipment 1,291 318 487 Provision for credit losses 3,622 7,145 2,075 Deferred income taxes ( 3,340 ) ( 31,583 ) ( 31,101 ) Other, net — — ( 256 ) Changes in assets and liabilities, net of the effects of acquisitions: Accounts and equipment financing receivables, net ( 9,801 ) 639 19,619 Accounts receivable - restricted for securitization investors ( 12,227 ) 9,071 8,048 Inventories, net ( 6,494 ) 5,776 30,436 Inventories, net - related party 168 55 ( 1,044 ) Equipment financing receivables, net - restricted for securitization investors ( 32,566 ) ( 35,065 ) ( 35,102 ) Other assets 3,382 362 2,400 Accounts payable ( 14,012 ) 5,755 ( 12,391 ) Accounts payable - related parties 514 ( 171 ) 1,509 Other liabilities 20,935 ( 12,146 ) 23,515 Net cash provided by operating activities 211,685 145,460 208,716 Cash flows from investing activities: Capital expenditures ( 53,668 ) ( 43,485 ) ( 32,686 ) Acquisition of businesses, net of cash acquired ( 12,619 ) ( 27,948 ) ( 15,114 ) Proceeds on disposition of assets 292 2,429 58 Originations of equipment financing receivables, net - restricted for securitization investors ( 102,344 ) ( 92,092 ) ( 86,583 ) Collections of equipment financing receivables, net - restricted for securitization investors 76,692 73,336 82,324 Net cash used in investing activities ( 91,647 ) ( 87,760 ) ( 52,001 ) Cash flows from financing activities: Payments on revolving line of credit borrowings — ( 5,674 ) ( 2,877 ) Proceeds from long-term borrowings — 2,064,625 368 Payments on long-term borrowings ( 710,000 ) ( 1,268,000 ) ( 90,827 ) Cash paid for debt establishment and amendment fees ( 1,967 ) ( 2,389 ) — Proceeds from initial public offering, net of issuance costs 497,032 — — Increase in asset backed borrowings owed to securitization investors 219,829 204,434 200,969 Decrease in asset backed borrowings owed to securitization investors ( 155,014 ) ( 165,898 ) ( 180,364 ) Dividends paid — ( 265,940 ) — Return of capital paid — ( 634,060 ) — Repurchase of common stock ( 6,205 ) ( 1,445 ) ( 18,955 ) Taxes paid related to net share settlement of stock options ( 7,782 ) ( 1,138 ) ( 195 ) Net proceeds from stock options exercised 5,697 111 24 Proceeds from common stock issuance under employee purchase plan 500 — — Net cash used in financing activities ( 157,910 ) ( 75,374 ) ( 91,857 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash ( 467 ) ( 4,253 ) ( 804 ) (Decrease)/increase in cash, cash equivalents, and restricted cash ( 38,339 ) ( 21,927 ) 64,054 Cash, cash equivalents, and restricted cash at beginning of period 188,042 209,969 145,915 Cash, cash equivalents, and restricted cash at end of period $ 149,703 $ 188,042 $ 209,969 72 Table of Contents Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated Balance Sheets: Cash and cash equivalents $ 123,102 $ 154,682 $ 182,449 Restricted cash 3,602 6,401 3,373 Restricted cash - for securitization investors 22,999 26,959 24,147 Total cash, cash equivalents, and restricted cash shown in the Statement of Cash Flows $ 149,703 $ 188,042 $ 209,969 Supplemental disclosure of cash flow information: Cash paid for interest $ 122,182 $ 146,660 $ 106,298 Cash paid for interest - to securitized investors $ 31,696 $ 34,313 $ 30,100 Cash paid for income taxes $ 48,725 $ 54,154 $ 33,716 Supplemental disclosure of investing and financing non-cash activities: Capital expenditures included in accounts payable $ 3,211 $ 6,292 $ 1,637 The accompanying notes are an integral part of these consolidated financial statements. 73 Table of Contents Alliance Laundry Holdings Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 - Description of Business and Basis of Presentation Description of Business Alliance Laundry Holdings Inc. (“ALH” or the “Company”) through its subsidiaries designs and manufactures a full line of commercial and residential laundry equipment for sale in the U.S. and international markets. The Company manufactures products in the United States in Ripon, Wisconsin and Manitowoc, Wisconsin, in Europe in Pribor, Czech Republic, and in Asia Pacific in Chonburi, Thailand and Guangzhou, China. Additionally, the Company provides equipment financing to laundromat operators and other end-users primarily in the U.S. Stockholders' Equity/(Deficit) and Capital Structure Changes On September 25, 2025 , the Company’s board of directors and stockholders approved a 142 -for- 1 stock split of the company’s issued and outstanding shares of common stock, including the shares of common stock underlying outstanding stock options. This stock split was effected on September 26, 2025. All issued and outstanding share and per share amounts of common stock and stock options included in the accompanying consolidated financial statements have been retroactively adjusted to reflect this stock split for all periods presented. The par value of the common stock was not adjusted as a result of the split and retained a par value of $ 0.01 per share. Accordingly, an amount equal to the par value of the additional shares issued resulting from the stock split was reclassified from additional paid-in capital to common stock. Additionally, on September 25, 2025 the board of directors retired and cancelled all treasury shares. On September 25, 2025 , Alliance Laundry Holdings Inc. filed a Certificate of Amendment to its Certificate of Incorporation to amend the authorized shares to 2,000,000,000 shares of common stock and 100,000,000 shares of preferred stock. Initial Public Offering The Company’s registration statement on Form S-1 related to its initial public offering (“IPO”) was declared effective on September 30, 2025 and the Company’s common stock began trading on the New York Stock Exchange on October 9, 2025. The Company's final prospectus (the “IPO Prospectus”) was filed with the SEC on October 9, 2025. On October 10, 2025 (the “IPO Closing Date”), the Company closed its IPO pursuant to which 43,195,120 shares of its common stock were sold, which includes the issuance and sale of 24,390,243 shares by the Company and the sale by a selling stockholder of 18,804,877 shares, which includes the full exercise of the underwriters’ option to purchase 5,634,146 additional shares, at a price to the public of $ 22.00 per share. The Company received net proceeds of approximately $ 505.7 million , after deducting the underwriting discounts and commissions and other offering expenses of approximately $ 30.8 million . Additionally, other offering costs of $ 8.7 million , consisting of direct incremental legal, accounting, consulting and other fees related to the IPO, were recorded as an offset to IPO proceeds in the Consolidated Statements of Stockholder's Equity/ (Deficit). Basis of Presentation and Principles of Consolidation The Consolidated Financial Statements include the accounts of ALH and all its majority-owned or controlled subsidiaries that are consolidated in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company consolidates its Asset Backed Facilities trust in accordance with variable interest entity accounting guidance as discussed in more detail in Note 6 - Asset Backed Facilities . All significant intercompany transactions have been eliminated. Gains and losses from the translation of substantially all foreign currency financial statements are recorded in the Accumulated other comprehensive income/(loss) within Stockholders' equity/(deficit). Note 2 - Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of 74 contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash, Cash Equivalents, and Restricted Cash All highly liquid instruments with an initial maturity of three months or less at the date of purchase are considered cash equivalents. Restricted cash primarily represents cash in escrow accounts related to acquisitions and cash collection and reserve accounts restricted for securitization investors. Earnings Per Share (“EPS”) Basic net income per share of common stock is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the respective reporting period. Diluted net income per share of common stock is calculated by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all potential dilutive shares of common stock that are calculated using the treasury stock method for stock options and warrants outstanding and unvested restricted stock. The treasury stock method assumes that the Company uses the proceeds from the exercise of stock option awards to repurchase common stock at the average market price during the period. The assumed proceeds under the treasury stock method include the purchase price that the option holder will pay in the future and compensation cost for future service that the Company has not yet recognized. For unvested restricted stock, assumed proceeds include unamortized compensation cost. Potential shares with anti-dilutive effects are excluded from the diluted net income per share of common stock calculation. Revenue Recognition Revenue from product sales is recognized when all of the following criteria are met: (i) the Company and an independent customer approve a contract with commercial substance, (ii) the performance obligations in the contract are identified, (iii) the sales price is determinable and collectible, (iv) the sales price of a contract is allocated to each distinct performance obligation and (v) the performance obligations have been satisfied through the transfer of control of the goods to the customer. Generally, control is transferred when the risk and rewards of ownership are transferred to the customer. Except for certain sales to international customers, which are recognized upon receipt by the customer, these criteria are primarily satisfied and revenue is recognized upon shipment. See Note 3 – Net Revenues for more information. Revenues are recorded net of sales incentive allowances, which are recognized as a deduction from sales at the time of sale. Sales incentive allowances include customer promotional programs and volume rebates that require the Company to estimate and accrue the ultimate costs of such programs. The Company maintains an accrual at the end of each period for the earned, but unpaid costs related to such programs. The Company offers certain customers the right to return eligible equipment and other purchases. Returns are not significant for any period presented. Deposits received from customers prior to satisfying revenue recognition performance obligations are recorded in Other current liabilities. Customer deposits are recognized into revenue when control of the goods passes to the customer, with conversion typically occurring within twelve months. The Company had customer deposits of $ 7.4 million and $ 10.4 million as of December 31, 2025 and 2024 , respectively. Supplier Financing The Company participates in a supplier financing arrangement with a third-party financial institution that allows suppliers to request early payment for eligible receivables at their sole discretion. These arrangements do not alter the Company’s obligations to its suppliers, including amounts due and scheduled payment terms. Obligations under the supplier financing program are classified as Accounts payable in the Consolidated Balance Sheets. The Company discloses the key terms of the program, the outstanding amount under the program at the end of each reporting period and provides an annual rollforward of the related obligations. Refer to Note 23 - Supplier Financing for additional information regarding the Company’s supplier financing arrangements. 75 Equipment Financing Receivables Equipment financing receivables, net reflect equipment loans that the Company expects to sell in the short-term to the Company’s existing securitization facility as well as other loans not eligible for sale to the facility. Equipment financing receivables, net and Equipment financing receivables, net - restricted for securitization investors are stated at the principal amount outstanding net of the allowance for credit losses. Interest income is accrued as earned on outstanding balances. Recognition of income is suspended, and previously recorded accrued interest income is reversed, when it is determined that collection of future income is not probable (after 89 days past due). Fees earned and incremental direct costs incurred upon origination of equipment financing are not significant for any period presented. In accordance with Accounting Standards Codification (“ASC”) 230, Statement of Cash Flows, the Company records cash flows associated with equipment loans provided directly to the Company’s customers as operating cash flows. The Company considers these lending activities to be an integral component of its primary revenue-generating operations, as they directly support sales to customers and are part of the Company’s ordinary course of business. The Company records cash flows associated with equipment loans with borrowers who purchase their equipment through the Company’s independent distribution network as cash flows from investing activities. The Company considers these loans to be investments that support sales through external channels rather than direct revenue-generating activities. Sales of Equipment Financing Receivables and Accounts Receivable The Company sells a majority of its trade and equipment financing receivables originated in the U.S. to special- purpose bankruptcy remote entities and a related trust. In a subordinated capacity, the Company retains rights to the residual portion of cash flows, including interest earned, from the equipment financing receivables sold. The Company consolidates the trust, including the assets and liabilities associated with the sale of accounts and equipment financing receivables, into its Consolidated Financial Statements. Financing Program Revenue The Company sells trade and equipment financing receivables through its special-purpose bankruptcy remote entities and a related trust. As servicing agent, the Company retains collection and administrative responsibilities for the accounts and equipment financing receivables. The Company recognizes interest income on sold equipment financing receivables in the period the interest is earned. The Company receives a servicing fee, based on the average outstanding balance, for the equipment financing receivables sold. The Company does not establish a servicing asset or liability because the servicing fee adequately compensates the Company for the retained servicing rights. Allowance for Credit Losses - Equipment Financing Receivables The allowance for credit losses is an estimate of losses inherent to the Company’s equipment financing receivables portfolio. The Company’s estimate includes accounts that have been individually identified as impaired and estimated credit losses over a pool of receivables where it is probable that certain receivables in the pool are impaired but that the individual accounts cannot yet be identified. When determining estimates of probable credit loss or whether an account is impaired, management takes into consideration numerous quantitative and qualitative factors such as historical loss experience, credit risk, portfolio duration and economic conditions. The Company determined that there is a limited correlation between expected credit losses and forecasted economic conditions based on a correlation analysis performed to compare historical losses to various economic conditions, such as real gross domestic product, inflation rate and unemployment rate. On an ongoing basis, the Company monitors credit quality based on past-due status as there is a meaningful correlation between the past-due status of customers and the risk of credit loss. The Company determines that an equipment financing receivable is impaired when it is expected that it will be unable to collect all amounts due according to the contractual terms of the loan or lease. These equipment financing receivables are collateral–dependent and measurement of impairment is based upon the estimated fair value of collateral. The determination of the allowance for credit losses is based on an analysis of historical loss experience and reflects an amount which, in the Company’s judgment, is adequate to provide for probable credit losses. When a financing receivable is non- performing, aged greater than 89 days and the Company has exhausted all efforts of collection, the receivable is deemed to be uncollectible and is charged off and deducted from the allowance. The allowance is increased for recoveries and by charges to earnings. 76 The total allowance for credit losses as of December 31, 2025 and 2024 was $ 6.4 million and $ 5.9 million , respectively. The reserve as a percentage of the total gross portfolio balance was 1.1 % and 1.1 % as of December 31, 2025 and 2024 , respectively. Inventories Inventories are valued at cost, which approximate costs determined on the first-in, first-out method but not in excess of net realizable value. The Company’s policy is to evaluate all inventories for obsolescence on a quarterly basis. Inventory in excess of the Company’s estimated usage requirements is recorded at its estimated net realizable value. Inherent in the estimates of net realizable value are estimates related to future manufacturing schedules, customer demand, possible alternate uses and ultimate realization of potentially excess inventory. Accounts Receivable and Allowance for Credit Losses Accounts receivable consists primarily of trade receivables and is carried at sales value less allowance for credit losses, representing the Company’s estimate of the net amount expected to be realized in cash. The Company reviews the allowance for credit losses on an ongoing basis, using historical payment trends, write-off experience, credit conditions, economic conditions, and other specific customer circumstances, and adjustments are made to the allowance as necessary. Long Lived Assets Long lived assets (property, plant and equipment and other intangible assets with definite lives) are stated at cost, less accumulated depreciation and amortization . Betterments and major renewals are capitalized and included in property, plant and equipment while expenditures for maintenance and minor renewals are charged to expense. Other intangible assets with definite lives consist primarily of customer agreements and distributor networks, engineering drawings, product designs and manufacturing processes, trademarks, patents and computer software. The costs of assets and related accumulated depreciation and amortization are eliminated when assets are retired or otherwise disposed of and any resulting gain or loss is reflected in operating costs. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the related carrying amount may not be recoverable based upon related estimated future undiscounted cash flows. Impairment losses on assets to be held and used are recognized, when required, when the fair value of the asset is less than its carrying value. Long-lived assets to be disposed of by sale are reported at the lower of carrying amount or fair value less cost to sell. Depreciation and amortization are computed over the estimated useful lives of the respective assets using the straight- line method for financial reporting purposes and accelerated methods for income tax purposes. Depreciation provisions for property, plant and equipment are based on the following estimated useful lives: buildings 40 years ; machinery and equipment (including production tooling) 5 to 10 years ; vehicles 4 years ; and data processing equipment 3 years . Leasehold improvements are amortized over the lesser of the remaining life of the lease or the estimated useful life of the improvement. Other intangible assets with definite lives are amortized over the assets’ estimated useful lives which range from three to nineteen years . Goodwill and Indefinite-Lived Intangible Assets Goodwill is tested for impairment at least annually, on October 1, and more frequently if an event occurs which indicates that goodwill may be impaired. Accounting Standards Update ("ASU") No. 2017-04 Intangibles-Goodwill and Other (“Topic 350”): Simplifying the Test for Goodwill allows companies to apply a one-step quantitative test and, as applicable, record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The estimated fair value is determined using a combination of the income approach and the market approach which involves the use of estimates. Under the income-based approach, fair value is estimated using the expected present value of future cash flows as determined with the assistance of a third party. Estimating future cash flows to be generated by the reporting unit requires significant judgments and assumptions by Management including sales, operating margins, royalty rates, discount rates, and future economic conditions. The Company believes its assumptions to be consistent with those a market participant would use for valuation purposes. Several of the Company’s tradenames and trademarks have been deemed to have an indefinite life as the Company expects to continue to use these assets for the foreseeable future. There are no limitations of a legal, regulatory or 77 contractual nature that limit the period of time for which the Company can use these assets. The Company has the right to continue to use these assets and can continue to do so with limited cost to the Company. The effects of obsolescence, demand, competition and other economic factors are not expected to impact the indefinite life assumptions. Intangible assets not subject to amortization (indefinite-lived intangible assets) are tested for impairment at least annually, on October 1, and more frequently if an event occurs which indicates the intangible asset may be impaired. The impairment test consists of a comparison of the fair value of the intangible asset with its carrying amount. An impairment loss is recognized if the carrying amount of an intangible asset exceeds its fair value in an amount equal to that excess, but not to exceed the carrying amount of the intangible asset. The fair value of the tradenames and trademarks is determined with the assistance of a third party using the relief-from-royalty method. A considerable amount of management judgment and assumptions are required in performing the impairment tests, principally in estimating future cash flows of each reporting unit and determining the fair value of the indefinite-lived intangible assets. There was no impairment of our indefinite-lived assets, including goodwill, for the years ended December 31, 2025 , 2024 and 2023 . Income Taxes The income tax provision is computed based on the pretax income included in the Consolidated Statements of Comprehensive Income. Certain items of income and expense are not recognized on the Company’s income tax returns and financial statements in the same year, which creates timing differences or are permanently disallowed. The income tax effect of these timing differences results in (1) deferred income tax assets that create a reduction in future income taxes and (2) deferred income tax liabilities that create an increase in future income taxes. Recognition of deferred income tax assets is based on management’s belief that it is more likely than not that the income tax benefit associated with temporary differences will be realized. The Company records a valuation allowance to reduce its net deferred income tax assets if, based on its assessment of future taxable income, it is more likely than not that it will not be able to use these tax benefits. The Company may have to adjust the valuation allowance if its estimate of future taxable income changes at any time. Recording such an adjustment could have a material adverse effect on the Company’s Consolidated Statements of Comprehensive Income. The Company releases income tax effects from Accumulated other comprehensive (loss)/income when individual assets or liabilities are sold, terminated or extinguished. The Tax Cuts and Jobs Act was signed into federal law on December 22, 2017. The Act subjects a US shareholder to current tax on global intangible low-taxed income (GILTI) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. We have elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. Product Warranty Liabilities The costs of warranty obligations are estimated and provided for at the time of sale. Standard product warranties vary from one to seven years . The standard warranty program includes replacement of defective components. Additionally, the standard warranty covers labor costs for repairs solely related to Commercial In-Home equipment. The Company also sells separately priced extended warranties associated with its commercial products. The Company recognizes extended warranty revenues over the period covered by the warranty. The reserves for standard and extended warranties are included in the table in Note 16 - Product Warranties . Advertising Expenses Advertising costs are expensed as incurred and are included in Selling, general and administrative expenses in the Consolidated Statements of Comprehensive Income. These costs were approximately $ 16.0 million , $ 14.1 million and $ 12.2 million for the year ended December 31, 2025 , 2024 and 2023 , respectively. Shipping and Handling Fees and Costs Shipping and handling fees charged to customers are reflected in Net revenues and shipping and handling expenses are reflected in Cost of sales. 78 Debt Issuance Costs and Original Issue Discount The Company enters into new, or amends existing, credit agreements to support its operations, fund acquisitions, securitization activities, dividend distributions and other purposes. These refinancing activities and related costs, as well as any capitalized costs and original issue discounts from prior transactions, are capitalized or expensed in accordance with the debt modification and debt extinguishment accounting guidance. Debt issuance costs are amortized using the effective interest rate method or straight line when straight line approximates the effective interest rate method. In August 2024 , the Company incurred $ 32.8 million of fees in connection with the execution of the Credit Agreement. Of these fees, $ 30.4 million was expensed and included in Other expenses, net and Other expenses, net - related parties in the Consolidated Statements of Comprehensive Income. The remaining $ 2.4 million related to the revolving credit facility and was included in Other long-term assets in the Consolidated Balance Sheets. The Company also recorded $ 10.4 million for original issuance discount in 2024 related to the Credit Agreement, which is included in Long- term debt, net in the Consolidated Balance Sheets. Additionally, the Company wrote off a portion of the unamortized debt issuance costs and original issuance discounts related to the Prior Credit Agreement, resulting in expense of $ 2.8 million recorded in Other expenses, net in the Consolidated Statements of Comprehensive Income. On February 20, 2025 we finalized an amendment to our Credit Agreement, which reduced the applicable margin on the Term Loan and RCF. The Company incurred $ 1.0 million of fees in connection with this amendment which were expensed and included in Other expenses, net in the Consolidated Statements of Comprehensive Income. On August 21, 2025 , we finalized an amendment to our Credit Agreement, which reduced the applicable margin on the Term Loan and RCF. The Company incurred $ 1.3 million of fees in connection with this amendment which were expensed and included in Other expenses, net in the Consolidated Statements of Comprehensive Income. The Company wrote off a portion of the unamortized debt issuance costs and original issuance discounts related to the Prior Credit Agreement, resulting in expense of $ 1.3 million rec orded in Other expenses, net in the Consolidated Statements of Comprehensive Income for the year ended December 31, 2025 . See Note 18 - Debt for further information on the Credit Agreement. Foreign Currencies The functional currency of the Company's foreign subsidiaries is the local currency in which the subsidiary operates. The Company translates the results of operations of its foreign entities using average exchange rates for each month while balance sheet accounts are translated using exchange rates at the end of each period. The Company records the foreign currency translation adjustments as a component of Accumulated other comprehensive income/(loss). Foreign exchange transaction losses/(gains) recorded in earnings w ere $ 1.2 million , $ 0.7 million , and $( 0.3 ) million for the year ended December 31, 2025 , 2024 , and 2023 respectively. Additionally, foreign exchange losses/(gains) on intercompany loans of $ 25.2 million , $( 4.7 ) million , and $ 0.5 million were recorded in earnings for the years ended December 31, 2025 , 2024 , and 2023 , respectively, see Note 5 - Other Expenses, net for further information. Research and Development Expenses Research and development expenditures are expensed as incurred and are included in the Selling, general and administrative expenses in the Consolidated Statements of Comprehensive Income. Research and development costs were $ 29.7 million , $ 22.8 million and $ 22.8 million for the year ended December 31, 2025 , 2024 and 2023 , respectively. Fair Value of Other Financial Instruments The carrying amounts reported in the Consolidated Balance Sheets for Cash and cash equivalents, Restricted cash, Restricted cash - for securitization investors, Accounts receivable, net, Accounts receivable, net - restricted for securitization investors, Equipment financing receivables, net - restricted for securitization investors, Accounts payable and Asset backed borrowings - owed to securitization investors approximate fair value either due to the short-term nature or longer-term instruments which have interest at variable rates that re-price frequently. The fair value of interest rate swaps and commodity and foreign exchange hedges are obtained based upon third party quotes. 79 Current accounting guidance defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. It also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources while unobservable inputs (lowest level) reflect internally developed market assumptions. In accordance with the guidance, fair value measurements are classified under the following hierarchy: • Level 1 - Quoted prices for identical instruments in active markets. • Level 2 - Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs or significant value- drivers are observable in active markets. • Level 3 - Model-derived valuations in which one or more significant inputs or significant value-drivers are unobservable. When available, the Company uses quoted market prices to determine fair value and classifies such measurements within Level 1. In some cases where market prices are not available, the Company makes use of observable market-based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon internally developed models that use, where possible, current market- based parameters such as interest rates, yield curves and currency rates. These measurements are classified within Level 3. Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. A measurement may therefore be classified within Level 3 even though there may be significant inputs that are readily observable. Derivative Financial Instruments Changes in the fair value of derivatives are recognized in Net income or Accumulated other comprehensive income/ (loss), as appropriate. The Company does not designate any of its derivatives as hedges and, as such, records all changes in fair values as a component of current earnings. Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk include trade accounts receivable and equipment financing receivables. Concentrations of credit risk with respect to trade receivables and equipment financing receivables are limited, to a degree, by the large number of geographically diverse customers that make up the Company’s customer base. The Company controls credit risk through credit approvals, credit limits, monitoring procedures, and secured payment term s . Stock Based Compensation The Company issues stock-based compensation awards to employees in the form of service-based and performance- based stock options (collectively, “option awards”) and restricted stock units ("RSUs"). The awards are accounted for in accordance with ASC 718, Compensation: Stock Compensation (“ASC 718”), by measuring the fair value as of the grant date. Options awards have a term of 10 years and an exercise price equal to 100 % of the fair market value of the Company’s common stock at the grant date. Granted service options vest in five equal annual installments of the stated vesting commencement date with the potential for accelerated vesting upon a change in control of ALH. The RSUs granted to employees generally vest ratably over four years . The Company has elected to recognize the resulting compensation costs for service-based awards and RSUs on a straight-line basis over the requisite service period of the award. Performance-based awards issued prior to our IPO were structured to vest upon the occurrence of a liquidity event, defined as: (i) a Change in Control; (ii) a Public Offering; (iii) a SPAC Transaction; or (iv) a Direct Listing, provided that our principal stockholder received aggregate proceeds in excess of a deemed investment threshold and achieved a specified internal rate of return. The grant date fair value of these performance-based awards was estimated using a Monte Carlo simulation model. In October 2025, in connection with the consummation of the Company's IPO, the awards fully vested, and the Company recognized expense of $ 16.0 million in the fiscal quarter ended December 31, 2025. 80 For service-based awards, the Company uses the Black-Scholes option pricing model to measure the grant date fair value. The Black-Scholes option pricing model incorporates several key assumptions that require significant judgment, including the fair value of the underlying common stock, the risk-free interest rate, the expected term of the option, the expected volatility of the Company’s common stock, and the expected dividend yield. The Black-Scholes assumptions are summarized as follows: • Fair value of common stock - For awards granted prior to the IPO, and given the absence of a public trading market, the Company exercised reasonable judgment and considered a number of objective and subjective factors to determine the best estimate of the fair value of our common stock. Factors considered for the prior grants included, but were not limited to: (i) the results of independent third-party valuations of the Company’s common stock; (ii) the lack of marketability of the Company’s common stock; (iii) actual operating and financial results; (iv) current business conditions and projections; (v) the likelihood of achieving a liquidity event, such as an i nitial public offering or sale of the Company, given prevailing market conditions; and (vi) precedent transactions involving the Company’s shares. The Company has not granted stock options subsequent to the completion of the IPO. • Risk-free interes t rate - The risk-free interest rate is calculated using the average of the published interest rates of U.S. Treasury zero coupon issues with maturities that are commensurate with the expected term. • Expected term - The expected term of stock options has been determined in all periods presented using the simplified method, which uses the midpoint between the vesting date and the contractual term, as the Company’s historical share option exercise experience does not provide a reasonable basis upon which to estimate the expected term for service-based stock options. • Expected volatility - Expected volatility is based on an analysis of reported data for a group of guideline publicly- traded companies. For this analysis, the Company selects companies with comparable characteristics including enterprise value, risk profiles, and with historical share price information sufficient to meet the expected life of the options. The Company determines expected volatility using an average of the historical volatilities of the guideline group of companies. • Expected dividend yield - The expected dividend yield is based on the expected annual dividend as a percentage of the market value of the Company’s common shares as of the grant date. The Company recognizes forfeitures as they occur, and any previously recognized compensation expense is reversed in the period of the forfeiture. See Note 20 - Stock Based Compensation . New Accounting Pronouncements Adopted In December 2023 , the FASB issued ASU 2023-09 Income Taxes (“Topic 740”): Improvements to Income Tax Disclosures Topic 740. The new guidance is intended to enhance the transparency of income tax disclosures, primarily related to rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024. The guidance is effective on a prospective basis, though retrospective application is permitted. The Company adopted ASU 2023-09 on a prospective basis for the fiscal year ended December 31, 2025 , which modified our annual disclosures but did not have a material impact on the Company’s Consolidated Financial Statements. New Accounting Pronouncements to be Adopted In November 2024, the FASB issued ASU 2024-03, Income Statement (Subtopic 220-40): Reporting Comprehensive Income—Expense Disaggregation Disclosures, which enhances certain disclosure requirements related to expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, selling, general and administrative expenses, and research and development). This guidance is effective for the Company for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. This ASU will only affect our disclosures and will not change the expense captions the Company presents on its Consolidated Statements of Comprehensive Income. In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326). This guidance contains amendments that provide decision-useful information to investors and other financial statement users while 81 reducing the time and effort necessary to analyze and estimate credit losses for current accounts receivable and current contract assets. The amendments will be effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. The Company is evaluating the impact the new standard will have on its consolidated financial statements. In September 2025 , the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which is intended to increase the operability of the recognition guidance considering different methods of software development. The amendments remove all references to prescriptive and sequential software development stages (referred to as “project stages”) throughout Subtopic 350-40, and instead specify an entity is required to start capitalizing software costs when both of the following occur: (1) management has authorized and committed to funding the software project and (2) it is probable that the project will be completed and the software will be used to perform the function intended (referred to as the “probable-to complete recognition threshold”). The amendments will be effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. The Company is evaluating the impact the new standard will have on its consolidated financial statements. In December 2025, the FASB issued ASU 2025-11, Interim Reporting: Narrow-Scope Improvements, which improves clarity for interim financial reporting requirements under the existing guidance by creating a comprehensive list of interim disclosure requirements, clarifying scope and applicability, along with adding a principle to disclose all material events that have occurred since the most recently filed Form 10-K. The amendments will be effective for interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact the new standard will have on its consolidated financial statements and related disclosures. Note 3 – Net Revenues Net revenues by reportable segment and major type of good or service were as follows: Year Ended December 31, (in thousands) 2025 2024 2023 North America Equipment $ 1,052,346 $ 911,160 $ 819,782 Service parts 128,899 114,482 101,679 Equipment financing 49,234 48,142 42,906 Other 38,500 35,350 32,395 Total North America Net revenues 1,268,979 1,109,134 996,762 International Equipment 388,470 350,824 322,563 Service parts 46,128 41,880 39,254 Equipment financing 323 552 821 Other 5,337 6,050 5,754 Total International Net revenues 440,258 399,306 368,392 Total Net revenues $ 1,709,237 $ 1,508,440 $ 1,365,154 Equipment and service parts The Company offers a full line of stand-alone laundry washers and dryers and related service parts. These products range from small residential washers and dryers to large commercial laundry equipment. Revenue from equipment and service part sales is recognized when the Company satisfies a performance obligation by transferring control of a product to a customer. Transfer of control generally takes place upon shipment to the customer. Revenue is measured based on the consideration that the Company expects to be entitled to in exchange for the products transferred. Sales are generally made 82 with 30 – 120 day terms. The resulting receivables are recorded on the Consolidated Balance Sheet under Accounts receivable, net and Accounts receivable, net - restricted for securitization investors for those receivables that are sold to a securitization entity. Sales incentive programs such as cash discounts, customer promotional allowances, and volume rebates are used to promote the sale of equipment and other products. The Company estimates its variable consideration related to sales incentive programs using the most likely amount. Revenues are recorded net of sales incentive allowances, and are based on factors specific to each customer’s program such as expected sales volume and rebate percentages. The Company maintains an accrual at the end of each period for the unpaid amount the customer is expected to earn related to such programs. As of December 31, 2025 and 2024 , the related accrual balances were $ 27.4 million and $ 23.1 million , respectively. The accruals are recorded in Other current liabilities in the Consolidated Balance Sheet. Shipping and handling costs associated with freight after control of a product has transferred to a customer are accounted for as fulfillment costs. The Company accrues for the shipping and handling costs in the same period that the related revenue is recognized. The Company offers standard, limited warranties on its products. These warranties provide assurance that the product will function as expected and are not separate performance obligations. The Company accounts for estimated warranty costs as a liability when control of the product transfers to the customer. The Company sells an extended warranty to its customers that is a separate performance obligation as the Company stands by ready to perform additional warranty work not covered by the standard warranty. The Company defers the extended warranty revenue until the period covered by the extended warranty begins, and then recognizes extended warranty revenue ratably over the coverage period. The extended warranty contract liability was $ 1.4 million and $ 1.0 million as of December 31, 2025 and 2024 , respectively. The Company collects and remits taxes assessed by different governmental authorities that are both imposed on and concurrent with revenue producing transactions between the Company and its customers. The Company excludes these taxes from Net revenues. Equipment financing The Company offers an equipment financing program to end-customers who are primarily laundromat owners, in order to finance their purchase of new equipment. Typical terms for equipment financing receivables range from two to twelve years . Interest income on finance receivables is recorded as earned over the life of the loan. See Note 7 - Securitization Activities for further discussion regarding asset-backed financing. Other Other revenue consists primarily of company-owned laundromat proceeds, scrap sale and field service revenue. Revenue from these sources is typically recognized at point of sale or when the service is performed. Additionally, other revenue includes sales of our digital products under distinct subscription agreements. The Company records revenue for digital product subscriptions ratably over the subscription coverage period. Note 4 - Acquisitions On August 1, 2025 , the Company acquired certain net assets of Metropolitan Laundry Machinery Sales Inc. ("Metropolitan Laundry"), a leading distributor of laundry equipment headquartered in South Richmond Hill, New York, servicing the metro New York area. Prior to the acquisition, the Company had a preexisting relationship with Metropolitan Laundry in the normal course of business. At the acquisition date, the Company had a receivable of $ 1.1 million that was settled in connection with the acquisition. The purchase price allocation for this acquisition is complete. On October 1, 2024 , the Company paid cash to acquire certain net assets of Bestway Distributing Company (“Bestway”), a leading distributor of on-premise laundry equipment in Corona, California. Prior to the acquisition, the Company had a preexisting relationship with Bestway in the normal course of business. At the acquisition date, the Company had a receivable of $ 0.2 million that was settled in connection with the acquisition. 83 On September 1, 2024 , the Company paid cash to acquire certain net assets of L&R Laundry, LLC DBA Alliance Laundry Equipment (“L&R Laundry”), a premier provider of solutions for on-premise laundries and laundromats, headquartered in Salt Lake City, Utah. Prior to the acquisition, the Company had a preexisting relationship with L&R Laundry in the normal course of business. At the acquisition date, the Company had a receivable of $ 2.1 million that was settled in connection with the acquisition. On July 1, 2024 , the Company paid cash to acquire certain net assets of Star Distributing Commercial Laundry Equipment, Inc. (“Star Distributing”), a leader in providing solutions for on-premise laundries, laundromats, and multi- housing applications and its parts business in Nashville, Tennessee. Prior to the acquisition, the Company had a preexisting relationship with Star Distributing in the normal course of business. At the acquisition date, the Company had a receivable of $ 1.1 million that was settled in connection with the acquisition. On November 1, 2023 the Company paid cash to acquire certain net assets of Statewide Machinery, Inc. (“Statewide”), a leader in providing solutions for on-premise laundries, laundromats, and multi-housing applications in Northern Pennsylvania, as well as Buffalo, Syracuse, Rochester and Albany, New York and is headquartered in Batavia, New York. Prior to the acquisition, the Company had a preexisting relationship with Statewide in the normal course of business. At the acquisition date, the Company had a receivable of $ 1.5 million that was settled in connection with the acquisition. On July 1, 2023 , the Company paid cash to acquire certain net assets of Dynamic Laundry Systems, Inc. (“DSS”), a distributor with more than three decades of experience in providing commercial laundry solutions in the Pacific Northwest and is headquartered in Kirkland, Washington. Prior to the acquisition, the Company had a preexisting relationship with DSS in the normal course of business. At the acquisition date, the Company had a receivable of $ 0.6 million that was settled in connection with the acquisition. On April 1, 2023 , the Company paid cash to acquire certain net assets of Taylor Houseman, Inc. (“Taylor Houseman”), distributor with more than two decades of experience in providing commercial laundry solutions in the Northern California area and is headquartered in Pittsburg, California. Prior to the acquisition, the Company had a preexisting relationship with Taylor Houseman in the normal course of business. At the acquisition date, the Company had a receivable of $ 0.03 million that was settled in connection with the acquisition. The following table summarizes the aggregate purchase price allocation of the estimated fair value of assets acquired and liabilities assumed as of the acquisition date for these acquisitions. Year Ended December 31, (in thousands) 2025 2024 2023 Total purchase price $ 11,447 $ 29,697 $ 16,816 Allocation of purchase price: Assets acquired: Accounts receivables 28 2,102 1,992 Inventories, net 503 4,126 3,486 Property, plant, and equipment, net 140 706 1,129 Intangible assets - customer relationships 3,000 12,500 5,500 Total assets acquired $ 3,671 $ 19,434 $ 12,107 Total liabilities assumed 404 1,021 1,331 Total net assets acquired $ 3,267 $ 18,413 $ 10,776 Goodwill 8,180 11,284 6,040 Total purchase price allocation $ 11,447 $ 29,697 $ 16,816 Goodwill and Intangible assets related to acquisitions are included in the North America reportable segment and are deductible for tax purposes over a 15 year period. The acquired customer relationship intangible assets acquired in 2025 were assigned a useful life of six years . The useful life assigned to customer relationship intangible assets acquired in 2024 84 and 2023 was seven years . Goodwill recognized in connection with these acquisitions reflect the strategic and synergistic benefits expected be realized. From the date of acquisition through December 31, 2025 , the Consolidated Statements of Comprehensive Income reflected contributions from companies acquired during the year of approximately $ 4.3 million in Net revenues. From the date of acquisition through December 31, 2024 , the Consolidated Statements of Comprehensive Income reflected contributions from companies acquired during the year of approximately $ 8.2 million in Net revenues. From the date of acquisition through December 31, 2023 , the Consolidated Statements of Comprehensive Income reflected contributions from companies acquired during the year of approximately $ 10.8 million in Net revenues. The acquisitions completed in 2025, 2024 and 2023 were immaterial to the consolidated financial statements. Note 5 - Other Expenses, net The following table presents a summary of Other expenses, net, as shown in the Consolidated Statements of Comprehensive Income. Year Ended December 31, (in thousands) 2025 2024 2023 Foreign exchange losses/(gains) on intercompany loans $ 25,152 $ ( 4,654 ) $ 484 Debt issuance cost write-offs and amendment expenses 3,679 28,030 — Non-service components of net periodic pension expense — — 337 Pension settlement loss — — 7,011 Other expenses, net $ 28,831 $ 23,376 $ 7,832 Foreign exchange losses/(gains) on intercompany loans result from intercompany loans where the lender or borrower’s functional currency differs from the loan denomination currency. During 2023, the Company completed termination proceedings for the pension plan and recognized a settlement loss of $ 7.0 million f or the year ended December 31, 2023 . See Note 17 - Pensions and Other Employee Benefits for further information. Note 6 - Asset Backed Facilities Securitized Equipment Financing The Company maintains an internal financing organization primarily to assist end-user laundromat locations in financing Company-branded equipment through the Company’s distributors in the United States and Canada. Alliance Laundry originates and administers the sale of equipment financing receivables through a special-purpose bankruptcy remote subsidiary, Alliance Laundry Equipment Receivables 2015 LLC (“ALER 2015”), and a trust (a qualified special purpose entity or “QSPE”), Alliance Laundry Equipment Receivables Trust 2015-A (“ALERT 2015A”). These transactions are financed by a revolving credit facility (the “Asset Backed Equipment Facility”) backed by equipment financing receivables originated by the Company. Alliance Laundry is permitted, from time to time, to sell certain equipment financing receivables to its special-purpose subsidiary, which in turn transfers them to the trust. On June 30, 2022 the Company entered the Seventh Amendment to the Asset Backed Equipment Facility to extend the term of the agreement until June 30, 2025 . As a result, the Company incurred $ 1.2 million of fees which were capitalized and included in Debt issuance costs, net in the Consolidated Balance Sheets. These costs were being amortized over the three -year life of the facility, which approximated the effective interest method . On June 25, 2024 , the Company entered into an agreement to increase the facility limit from a lender committed amount of $ 430.0 million to $ 460.0 million . On May 1, 2025 , the Company entered into an amendment to the Asset Backed Equipment Facility to increase the facility limit from a lender committed amount of $ 460.0 million to $ 500.0 million , with an additional uncommitted increase of $ 30.0 million available. The amendment extended the term until May 1, 2028 . As a result, the Company incurred $ 1.6 million of fees which were capitalized and included in Debt issuance costs, net line of the Consolidated Balance Sheets. These costs are being amortized over the three -year life of the facility, which approximates the effective interest method. 85 On December 29, 2025 , the Company entered into an agreement (the "Facility Limit Increase Agreement") to convert the lender uncommitted amount of $ 30.0 million , which increased the lender committed amount under the Asset Backed Equipment Facility from $ 500.0 million to $ 530.0 million . As a result, the Company incurred $ 0.1 million of fees which were capitalized and included in Debt issuance costs, net in the Consolidated Balance Sheets. These costs are being amortized over the three -year life of the facility, which approximates the effective interest method . The trust finances the acquisition of equipment financing receivables through borrowings under the Asset Backed Equipment Facility in the form of funding notes which are limited to an advance rate of approximately 88 % . Additional advances under the Asset Backed Equipment Facility are subject to certain continuing conditions, including but not limited to: (i) covenant restrictions relating to the weighted average life, weighted average interest rate and the amount of fixed rate equipment financing receivables held by the trust; (ii) the absence of a rapid amortization event or event of default, as defined; (iii) the Company’s compliance, as servicer, with certain financial covenants and (iv) no event having occurred which materially and adversely affects the Company’s operations. The risk of loss to the note purchasers under the Asset Backed Equipment Facility resulting from default or dilution on equipment financing receivables is mitigated by credit enhancement provided by the Company in the form of cash reserves and over-collateralization. The Company also retains the servicing rights and receives a monthly servicing fee for the equipment financing receivables sold at a 1.0 % annual rate of the aggregate balance of such equipment financing receivables. Under the Asset Backed Equipment Facility, interest payments on the variable funding notes are paid monthly at an interest rate equal to the daily simple SOFR (“Secured Overnight Financing Rate”) rate plus a margin of 120 basis points, which was equivalent to 5.0 % at December 31, 2025 . If an event of default occurs, the otherwise applicable interest rate for the Asset Backed Equipment Facility will be increased by an amount equal to 200 basis points per annum. The lenders also earn an unused facility fee of 0.35 % of the unfunded portion of each lender's commitment amount prior to a rapid amortization event or event of default. After May 1, 2028 , the trust will not be permitted to request new borrowings, and the outstanding borrowings will amortize over a period of two and a half years with any remaining balance due at maturity. The equipment financing receivables typically have interest rates ranging primarily from Prime plus 0.0 % to Prime plus 4.75 % for variable rate equipment financing receivables and 3.75 % to 11.50 % for fixed-rate equipment financing receivables. The average interest rate for all equipment financing receivables at December 31, 2025 was 8.43 % with terms ranging primarily from two to twelve years . The weighted-average remaining expected life of equipment financing receivables held by the trust was approximately 3.42 years at December 31, 2025 . All equipment financing receivables allow the holder to prepay outstanding principal amounts without penalty. Securitized Receivables Financing Alliance Laundry, through a special-purpose bankruptcy remote subsidiary, Alliance Laundry Trade Receivables LLC (“ALTR LLC”), utilizes a revolving credit facility (the “Asset Backed Trade Receivables Facility”) backed by trade receivables originated by the Company. Under the Asset Backed Trade Receivables Facility, Alliance Laundry originates and simultaneously sells its trade receivables to its special-purpose subsidiary. The risk of loss to the trade receivables under the Asset Backed Trade Receivables Facility resulting from default or dilution on trade receivables is mitigated by credit enhancement provided by the Company in the form of over-collateralization. On June 30, 2022 , the Company entered an amendment to the Asset Backed Trade Receivables Facility to extend the term of the agreement until June 30, 2025, and increase the facility limit of $ 100.0 million to $ 120.0 million . The Company incurred $ 0.3 million of fees in connection with the amendment which were capitalized and included in Debt issuance costs, net in the Consolidated Balance Sheets. These costs were amortized over three -year revolving life of the facility, which approximates the effective interest method. On May 1, 2025 , the Company entered into an amendment to the Asset Backed Trade Receivables Facility, which extended the term of the agreement until May 1, 2028 . The Company incurred $ 0.3 million of fees in connection with the amendment which were capitalized and included in the Debt issuance costs, net line of the Consolidated Balance Sheets. These costs are being amortized over the three -year revolving life of the facility, which approximates the effective interest method. 86 Under the Asset Backed Trade Receivables Facility, interest payments on the variable funding notes are paid monthly at an interest rate equal to the daily 1 -month SOFR rate plus a margin of 110 basis points, which was 4.8 % as of December 31, 2025 . The lender also earns an unused facility fee of 0.35 % of the unfunded portion of each lender’s commitment amount. After May 1, 2028 , ALTR LLC will not be permitted to request new borrowings, and the outstanding borrowings will amortize over 180 days with any remaining balance due at maturity. Additional advances under the Asset Backed Facilities are subject to certain continuing conditions, including but not limited to: (i) covenant restrictions relating to the weighted average life, weighted average interest rate and the amount of fixed rate equipment financing receivables held by the trust; (ii) the absence of a rapid amortization event or event of default, as defined; (iii) the Company’s compliance, as servicer, with certain financial covenants and (iv) no event having occurred which materially and adversely affects the Company’s operations. The variable funding notes issued under the Asset Backed Facilities will commence amortization, and borrowings under the Asset Backed Facilities will cease prior to the end of the Revolving Period, or May 1, 2028 , upon the occurrence of certain “rapid amortization events” which include: (i) a borrowing base shortfall exists and remains uncured; (ii) delinquency, dilution, or default ratios on pledged receivables and equipment financing receivables exceeding certain specified ratios in any given month; (iii) the days sales outstanding on receivables exceed a specified number of days; (iv) the occurrence and continuance of an event of default or servicer default under the Asset Backed Facilities, including but not limited to, as servicer, a material adverse change in our business or financial condition and the Company’s compliance with certain required financial covenants; and (v) a number of other specified events. As of December 31, 2025 , no rapid amortization events have occurred. All the residual beneficial interests in the trust and ALTR LLC and cash flows remaining from the pool of receivables after payment of all obligations under the Asset Backed Facilities will accrue to the benefit of Alliance Laundry. The Company provides no support or recourse for the risk of loss relating to default on the assets transferred to the trust and ALTR LLC except for the retained interests and amounts of the letters of credit outstanding from time to time as credit enhancement. The Company follows accounting standards relating to the consolidation of variable interest entities and accounting for transfers of financial assets. In evaluating the variable interest entity accounting guidance, the Company evaluated if the trust should be consolidated. The Company has concluded that it is the primary beneficiary of the trust as (1) it has the power to direct the activities of the trust that most significantly impact the trust's economic performance and (2) the Company has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the trust. As a result, the Company consolidates the trust in our financial statements. Note 7 - Securitization Activities The following lines of the Company’s Consolidated Balance Sheets are specific to the Company’s securitization and are restricted for securitization investors only: • Restricted cash - for securitization investors • Accounts receivable, net - restricted for securitization investors • Equipment financing receivables, net - restricted for securitization investors (current and long-term) • Asset backed borrowings - owed to securitization investors (current and long-term) Certain aspects of the Company’s retained interest in the assets of the trust constitute intercompany positions which are eliminated in the preparation of the Company’s Consolidated Balance Sheets. Trust receivables underlying the Company’s retained interest are recorded in Accounts receivable, net - restricted for securitization investors and Equipment financing receivables, net - restricted for securitization investors. Restricted Cash - for Securitization Investors To protect the noteholders of the trust, additional collateral in the form of a cash reserve equal to 1.0 % of the equipment financing receivable balances is maintained as well as a yield account for lower fixed rate loans. Additionally, 87 collection accounts to facilitate the collection and disbursement of funds are maintained separately for accounts receivable and equipment financing receivables. The following table presents the components of restricted cash for securitization investors. (in thousands) December 31, 2025 December 31, 2024 Cash reserve accounts $ 5,718 $ 5,217 Collection accounts - accounts receivable 935 1,579 Collection accounts - equipment financing receivables 16,346 20,163 Restricted cash - for securitization investors $ 22,999 $ 26,959 Securitization Activities The Company transfers accounts receivable and equipment financing receivables to its special-purpose bankruptcy remote subsidiaries in the ordinary course of business as part of its ongoing securitization activities. The Company receives a combination of cash and residual interests in the transferred assets in its securitization transactions. The following table presents the Company’s residual interests in Accounts Receivable - restricted for securitization investors. (in thousands) December 31, 2025 December 31, 2024 Accounts receivable - restricted for securitization investors $ 143,764 $ 132,017 Less: Allowance for accounts receivable credit losses ( 1,791 ) ( 1,957 ) Accounts receivable, net - restricted for securitization investors 141,973 130,060 Less: Asset backed borrowings - owed to securitization investors ( 113,176 ) ( 93,772 ) Company's residual interest in securitized accounts receivable $ 28,797 $ 36,288 The following table presents the Company’s residual interests in Equipment financing receivables, net - restricted for securitization investors. December 31, 2025 December 31, 2024 (in thousands) Current Long-term Current Long-term Equipment financing receivables - restricted for securitization investors $ 93,614 $ 474,292 $ 88,901 $ 422,054 Less: Allowance for equipment financing receivables credit losses ( 1,603 ) ( 3,884 ) ( 613 ) ( 4,382 ) Equipment financing receivables, net - restricted for securitization investors 92,011 470,408 88,288 417,672 Less: Asset backed borrowings - owed to securitization investors ( 81,004 ) ( 424,406 ) ( 77,090 ) ( 382,910 ) Company's residual interest in securitized equipment financing receivables $ 11,007 $ 46,002 $ 11,198 $ 34,762 88 Asset Backed Borrowings - Owed to Securitization Investors The asset backed borrowings owed to securitization investors in the Company’s Consolidated Balance Sheets represents the third-party noteholders’ interest in accounts receivable and equipment financing receivables. The following table presents the future minimum payments on asset backed borrowings. Year Related to Trade Receivables Related to Equipment Financing Receivables Total Securitization Debt 2026 $ 113,176 $ 81,004 $ 194,180 2027 — 82,704 82,704 2028 — 77,416 77,416 2029 — 70,668 70,668 2030 — 60,592 60,592 Thereafter — 133,026 133,026 Securitization Debt $ 113,176 $ 505,410 $ 618,586 Credit Quality of Equipment Financing Receivables Past due balances of equipment financing receivables represent the principal balance of loans and leases held with any payment amounts between 30 and 89 days past the contractual payment due date. Non-performing equipment financing receivables represent loans and leases that are generally more than 89 days delinquent. Non-performing receivables are included in the estimate of expected credit losses. The allowance is measured on a collective basis for equipment financing receivables with similar risk characteristics. The Company does not accrue interest income on non-performing equipment financing receivables. Finance income for non-performing equipment financing receivables is recognized on a cash basis. 89 The following table, shown in thousands, presents credit quality disclosures and an aging analysis of past due, non- performing and current equipment financing receivables by class and vintage: December 31, 2025 2025 2024 2023 2022 2021 Prior Total Securitized Current $ 185,415 $ 136,144 $ 97,584 $ 60,113 $ 31,519 $ 38,916 $ 549,691 30-59 Days — 1,158 1,007 7 156 392 2,720 60-89 Days — 2,433 313 73 855 — 3,674 Total past due accruing — 3,591 1,320 80 1,011 392 6,394 Over 89 Days non-performing 737 5,105 2,724 1,286 1,068 901 11,821 Total Securitized $ 186,152 $ 144,840 $ 101,628 $ 61,479 $ 33,598 $ 40,209 $ 567,906 Current period gross charge-offs $ — $ 13 $ 220 $ 77 $ 577 $ 442 $ 1,329 Unsecuritized Current $ 319 $ 1,104 $ 55 $ 1,221 $ 1,564 $ 3,285 $ 7,548 30-59 Days — — — 56 286 — 342 60-89 Days — — — — 15 15 30 Total past due accruing — — — 56 301 15 372 Over 89 Days non-performing — — — 143 390 197 730 Total Unsecuritized $ 319 $ 1,104 $ 55 $ 1,420 $ 2,255 $ 3,497 $ 8,650 Current period gross charge-offs $ — $ — $ — $ 227 $ 58 $ 170 $ 455 December 31, 2024 2024 2023 2022 2021 2020 Prior Total Securitized Current $ 173,629 $ 134,152 $ 81,055 $ 48,562 $ 24,282 $ 37,260 $ 498,940 30-59 Days 1,022 234 275 49 55 126 1,761 60-89 Days 371 842 — 759 — 132 2,104 Total past due accruing 1,393 1,076 275 808 55 258 3,865 Over 89 Days non-performing 615 3,227 1,231 1,262 618 1,197 8,150 Total Securitized $ 175,637 $ 138,455 $ 82,561 $ 50,632 $ 24,955 $ 38,715 $ 510,955 Current period gross charge-offs $ — $ 277 $ 66 $ 115 $ 42 $ 384 $ 884 Unsecuritized Current $ 1,308 $ 60 $ 1,792 $ 3,275 $ 76 $ 5,527 $ 12,038 30-59 Days — — — 49 — 28 77 60-89 Days — — — — — 11 11 Total past due accruing — — — 49 — 39 88 Over 89 Days non-performing — 27 310 414 — 248 999 Total Unsecuritized $ 1,308 $ 87 $ 2,102 $ 3,738 $ 76 $ 5,814 $ 13,125 Current period gross charge-offs $ — $ — $ 6 $ 302 $ 38 $ 387 $ 733 The Company elected to exclude accrued interest receivable from the amortized cost basis. At December 31, 2025 and 2024 , accrued interest was $ 2.3 million and $ 2.2 million , respectively, which we report in Prepaid expenses and other current assets in the Consolidated Balance Sheets. The Company’s securitized equipment financing receivable losses, on a 90 total portfolio basis, as a percentage of average balances outstanding were 0.2 % , 0.2 % and 0.1 % for each of the years ended December 31, 2025 , 2024 and 2023 . The following table presents activity in the allowance for credit losses related to equipment financing receivables held on the Consolidated Balance Sheets. (in thousands) Balance at Beginning of Period Current Period Provision Actual Write-Off’s Recoveries Impact of Foreign Exchange Rates Balance at End of Period Unsecuritized Equipment Financing Receivables Portfolio Period ended: December 31, 2025 $ 892 286 ( 455 ) 108 84 $ 915 December 31, 2024 $ 1,340 332 ( 733 ) 4 ( 51 ) $ 892 December 31, 2023 $ 1,147 285 ( 212 ) 83 37 $ 1,340 Securitized Equipment Financing Receivables Portfolio - restricted for securitization investors Period ended: December 31, 2025 $ 4,995 1,756 ( 1,329 ) 65 — $ 5,487 December 31, 2024 $ 1,190 4,660 ( 884 ) 29 — $ 4,995 December 31, 2023 $ 691 900 ( 407 ) 6 — $ 1,190 Other Trust Items The Company incurred $ 1.9 million of capitalized debt issuance costs, associated with the refinancing of Asset Backed Facilities in 2025. The following table presents the amortization expense and extinguishment of debt issuance costs. Year Ended December 31, (in thousands) 2025 2024 2023 Amortization expense and extinguishment of debt issuance costs $ 772 $ 703 $ 703 N ote 8 - Inventories The following table summarizes our inventories as of December 31, 2025 and 2024 : (in thousands) 2025 2024 Finished goods $ 63,559 $ 63,528 Raw materials 62,335 52,948 Work in process 20,966 18,007 Inventories, net $ 146,860 $ 134,483 91 Note 9 - Property, Plant and Equipment The following table summarizes our Property, Plant and Equipment as of December 31, 2025 and 2024 : (in thousands) 2025 2024 Land $ 11,074 $ 9,941 Buildings and leasehold improvements 166,798 149,651 Finance leases 2,019 2,206 Machinery and equipment 364,634 331,925 544,525 493,723 Less: accumulated depreciation ( 319,647 ) ( 272,132 ) 224,878 221,591 Construction in progress 40,372 26,750 Total Property, plant and equipment, net $ 265,250 $ 248,341 Depreciation expense was $ 42.0 million , $ 39.7 million and $ 38.6 million for the years ended December 31, 2025 , 2024 and 2023 , respectively. Note 10 - Leases We lease certain property, information technology equipment, warehouse equipment, vehicles and other equipment through operating leases. We recognize a lease liability and corresponding right-of-use (“ROU”) asset based on the present value of lease payments. Our lease agreements may include options to extend or terminate the lease. When it is reasonably certain that we will exercise an option, we include the option in the recognition of ROU assets and lease liabilities. The Company used the short-term lease practical expedient which permits the Company to not capitalize leases with a term equal to or less than 12 months. The Company has elected the practical expedient to include fixed non-lease components of lease payments for the purpose of calculating lease right-of-use assets and liabilities. Non-lease components that are not fixed are expensed as incurred as variable lease payments. The Company’s lease agreements do not provide an implicit rate to determine the present value of lease payments. As such, the Company uses its incremental borrowing rate to determine the present value of lease payments. The Company derives its incremental borrowing rate from information available at the lease commencement date, which represents a collateralized rate of interest the Company would have to pay to borrow over a similar term an amount equal to the lease payments in a similar economic environment. We sublease certain real estate to third parties. Our sublease portfolio consists of operating leases, resulting in a nominal amount of sublease income for the year ended December 31, 2025 , 2024 and 2023 . The components of lease expense were as follows: (in thousands) December 31, 2025 December 31, 2024 December 31, 2023 Operating lease expense $ 7,048 $ 7,181 $ 7,142 Variable lease expense 1,454 1,751 1,511 Short-term lease expense 2,796 2,284 1,252 Total Operating lease expense $ 11,298 $ 11,216 $ 9,905 The variable lease expenses generally include common area maintenance, property taxes and mileage. 92 Supplemental information related to leases was as follows: (in thousands) December 31, 2025 December 31, 2024 Operating Leases Operating lease right-of-use assets $ 20,741 $ 17,080 Current liabilities $ 5,927 $ 5,502 Long-term liabilities $ 15,745 $ 12,549 Weighted average remaining lease term Operating leases 4.5 4.1 Weighted Average discount rates Operating leases 5.5 % 5.6 % Supplemental Cash Flow Information: (in thousands) December 31, 2025 December 31, 2024 December 31, 2023 Cash paid for amounts included in the measurement of Operating lease liabilities $ 6,055 $ 6,112 $ 3,950 Operating lease ROU assets obtained in the exchange for Operating lease liabilities $ 9,785 $ 4,703 $ 3,009 Maturities of operating lease liabilities were as follows: (in thousands) December 31, 2025 Amounts Due In 2026 $ 7,174 2027 5,808 2028 4,156 2029 3,280 2030 2,517 Thereafter 2,126 Total lease payments 25,061 Less: Imputed interest ( 3,389 ) Total $ 21,672 93 Note 11 - Goodwill and Other Intangibles Other Intangibles The following table presents a summary of identifiable intangible assets as of December 31, 2025 . (in thousands) Gross Amount Accumulated Amortization Net Amount Weighted Average Life Remaining Identifiable intangible assets: Trademarks and tradenames, indefinite lives $ 407,005 $ — $ 407,005 Indefinite Trademarks and tradenames, definite lives 16,423 12,008 4,415 2.75 years Customer agreements and distributor network 752,513 411,663 340,850 8.02 years Engineering and manufacturing designs and processes 66,983 66,983 — 0.00 years Patents 644 480 164 8.77 years Computer software and other 20,158 17,855 2,303 3.48 years $ 1,263,726 $ 508,989 $ 754,737 The Company’s trademarks and tradenames have renewal terms and the costs to renew these intangible assets are expensed as incurred. At December 31, 2025 , the trademarks have a weighted average time until the next renew al o f 4.73 years . The following table presents a summary of identifiable intangible assets as of December 31, 2024 . (in thousands) Gross Amount Accumulated Amortization Net Amount Weighted Average Life Remaining Identifiable intangible assets: Trademarks and tradenames, indefinite lives $ 407,005 $ — $ 407,005 Indefinite Trademarks and tradenames, definite lives 14,207 9,017 5,190 4.50 years Customer agreements and distributor network 733,657 358,769 374,888 9.02 years Engineering and manufacturing designs and processes 64,382 60,053 4,329 0.67 years Patents 644 452 192 9.31 years Computer software and other 16,016 13,954 2,062 3.76 years $ 1,235,911 $ 442,245 $ 793,666 The Company’s indefinite-lived intangible assets are the Speed Queen, Huebsch and UniMac trademarks. The trademarks were determined to have an indefinite useful life as the Company expects to continue to use these assets for the foreseeable future. The indefinite-lived trademarks are tested for impairment at least annually and more frequently if an event occurs which indicates the intangible asset may be impaired. The Company performs the annual impairment test of its indefinite- lived intangible assets on October 1 of each year and more frequently if an event occurs which indicates intangible assets may be impaired. The impairment test consists of a comparison of the fair value of the intangible asset with its carrying value amount. An impairment loss is recognized if the carrying amount of an intangible asset exceeds its fair value in an amount equal to that excess, but not to exceed the carrying amount of the intangible asset. The fair value of the tradenames and trademarks is determined with the assistance of a third party using the relief-from-royalty method. Based on the impairment tests, the Company did not record an impairment charge for the years ended December 31, 2025 , 2024 and 2023 as t he fair values of the Speed Queen, UniMac, and Huebsch trademarks were in excess of their carrying values as of December 31, 2025 , 2024 and 2023 . 94 Amortization expense of the Company’s definite-lived intangibles consisted of the following. Year Ended December 31, (in thousands) 2025 2024 2023 Amortization expense $ 51,681 $ 50,515 $ 50,151 Estimated amortization expense for existing definite-lived intangible assets beginning in 2026 is expected to be approximately $ 49.6 million , $ 49.3 million , $ 47.7 million , $ 45.3 million and $ 44.9 million for each of the years in the succeeding five-year period ending December 31, 2030 . Estimated amortization expense can be affected by various factors including future acquisitions or divestitures of trademark, licensing or distribution rights. Goodwill The following table presents the changes in carrying amount of goodwill by reporting unit. The North America reporting unit is included within the North America reportable segment. The Europe, Asia, and Middle East & Africa reporting units are included within the International reporting segment. There has been no goodwill allocated to the Retail Operations or Latin America reporting units, therefore these reporting units have been excluded from this presentation. (in thousands) North America Europe Asia Middle East & Africa Consolidated Balance, December 31, 2023⁽¹⁾ $ 583,307 $ 53,438 $ 14,341 $ 9,026 $ 660,112 Goodwill acquired 11,284 — — — 11,284 Measurement period adjustments ( 34 ) — — — ( 34 ) Currency translation — ( 4,481 ) ( 75 ) ( 226 ) ( 4,782 ) Balance, December 31, 2024⁽¹⁾ $ 594,557 $ 48,957 $ 14,266 $ 8,800 $ 666,580 Goodwill acquired 8,180 — — — 8,180 Measurement period adjustments ( 262 ) — — — ( 262 ) Currency translation — 9,120 152 460 9,732 Balance, December 31, 2025⁽¹⁾ $ 602,475 $ 58,077 $ 14,418 $ 9,260 $ 684,230 _____________________ (1) The carrying amount of goodwill is presented net of accumulated impairment losses of $ 112.5 million , $ 95.8 million and $ 104.1 million as of December 31, 2025 , 2024 and 2023 , respectively. On October 1 of each year, and more frequently if an event occurs which indicates goodwill may be impaired, the Company performs an annual impairment test of its goodwill. Based on the impairment tests, the Company did not record an impairment charge for the years ended December 31, 2025 , 2024 or 2023 . Note 12 - Derivative Financial Instruments Derivative instruments are accounted for at fair value. The accounting for changes in the fair value of a derivative depends on the intended use, designation and type of the derivative instrument. The Company does not designate any of its derivatives as hedges and, as such, records all changes in fair values as a component of earnings. Using derivative instruments means assuming counterparty credit risk. Counterparty credit risk relates to the loss the Company could incur if a counterparty were to default on a derivative contract. The Company primarily deals with investment grade counterparties and monitors its overall credit risk and exposure to individual counterparties. The Company does not anticipate nonperformance by any counterparties. The amount of counterparty credit exposure is the unrealized gains, if any, on such derivative contracts. The Company does not require, nor does it post collateral, or security, on such contracts. The Company is exposed to certain risks relating to its ongoing business operations. As a result, the Company enters into derivative transactions to manage these exposures. The primary risks managed through the use of derivative instruments are fluctuations in interest rates, foreign currency exchange rates and commodity prices. Fluctuations in these rates and prices can affect the Company’s operating results and financial condition. The Company manages the exposure to 95 these market risks through operating and financing activities and through the use of derivative financial instruments. The Company does not enter into derivative financial instruments for trading or speculative purposes. Interest Rate Risk Borrowings outstanding under the Term Loan totaled $ 1,365.0 million at December 31, 2025 . Borrowings under the Term Loan bear interest, at the option of Alliance Laundry, at a rate equal to an applicable margin plus (a) the adjusted base rate or (b) the term SOFR (both rates as defined in the Credit Agreement). The applicable margins for the Term Loan are currently 1.25 % with respect to adjusted base rate loans and 2.25 % with respect to term SOFR loans . An assumed 10% increase/decrease in the SOFR interest rate in effect at December 31, 2025 would increase/decrease annual interest expense by $ 2.3 million on the non-hedged portion of the borrowing. Effective September 3, 2024 , the Company entered into a $ 600.0 million interest rate swap agreement to hedge a portion of our interest rate risk related to our long-term borrowings. Under the swap, which matures on September 1, 2027 , the Company pays a fixed rate of 3.61 % and receives or pays monthly interest payments based upon a comparison to the one-month SOFR rate. Effective April 1, 2025 , the Company entered into a $ 150.0 million interest rate swap agreement to hedge a portion of our interest rate risk related to our long-term borrowings. Under the swap, which matures on April 3, 2028 , the Company pays a fixed rate of 3.36 % and receives or pays monthly interest payments based upon a comparison to the one-month SOFR rate. Interest rate caps are in place as part of the Asset Backed Facilities to limit the Company’s exposure to interest rate increases which may adversely affect the overall performance of the Company’s equipment financing activities. The interest rate cap strike rates are 5.19 % , 5.00 % and 7.00 % . Foreign Currency Risk The Company has manufacturing, sales, and distribution facilities in the Czech Republic, China and Thailand. The Company also has various sales and distribution facilities in Brazil, France, Spain, Italy, Germany and the United Arab Emirates. The Company also makes investments and enters into transactions denominated in foreign currencies. The vast majority of the Company’s international sales from its domestic operations are denominated in U.S. dollars. However, the Company is exposed to transactional and translational foreign exchange risk related to its foreign operations. Regarding transactional foreign exchange risk, the Company from time to time enters into certain forward exchange contracts to reduce the variability of the earnings and cash flow impacts of foreign denominated receivables and payables. The Company does not designate these contracts as hedge transactions. Accordingly, the mark-to-market impact of these contracts is recorded each period to current earnings. At December 31, 2025 , and 2024 , the Company had no outstanding foreign currency contracts. The Company’s primary translation exchange risk exposures at December 31, 2025 were the euro, Czech koruna, and Thai baht. Amounts invested in non-U.S. based subsidiaries are translated into US dollars at the exchange rate in effect at period end. The resulting translation adjustments are recorded in accumulated other comprehensive income/(loss) as foreign currency translation adjustments. Commodity Risk The Company is subject to the effects of changing raw material and component costs caused by movements in underlying commodity prices. The Company purchases raw materials and components containing various commodities including nickel, zinc, aluminum and copper. The Company generally buys these raw materials and components based upon market prices that are established with the vendor as part of the procurement process. 96 From time to time, the Company enters into contracts with its vendors to lock in commodity prices for various periods to limit its near-term exposure to fluctuations in raw material and component prices. In addition, the Company enters into commodity forward contracts, for commodities such as nickel, copper and aluminum, to reduce the variability on its earnings and cash flows of purchasing raw materials containing such commodities. The Company does not designate these contracts as hedge transactions. Accordingly, the mark-to-market impacts of these contracts are recorded each period to current earnings. At December 31, 2025 , the Company was managing $ 3.1 million notional value of nickel forward contracts and less than $ 0.1 million of copper forward contracts. At December 31, 2024 , the Company was managing $ 1.7 million notional value of nickel forward contracts. The Company presents its derivatives at gross fair values in the Consolidated Balance Sheets and does not maintain derivative contracts which would require financial instrument or collateral balances. The following tables summarize the fair value of the Company’s outstanding derivative contracts included within the Consolidated Balance Sheets. December 31, 2025 Fair Value (Level 2) Location on Balance Sheet Term (in thousands) Notional Amount Assets Liabilities Undesignated derivatives: Interest rate swap $ 750,000 $ — $ 3,341 Other current liabilities and long-term liabilities Various through 4/3/2028 Commodity hedges 3,177 281 14 Prepaid expenses and other current assets and Other current liabilities Various through 1/5/27 Interest rate cap 55,091 38 — Other long-term assets Various through 9/15/31 Total undesignated derivatives $ 319 $ 3,355 December 31, 2024 Fair Value (Level 2) Term (in thousands) Notional Amount Assets Liabilities Location on Balance Sheet Undesignated derivatives: Interest rate swap $ 600,000 $ 6,805 $ — Prepaid expenses and other current assets and Other assets Through 9/1/27 Commodity hedges 1,742 — 34 Other current liabilities Various through 12/31/25 Interest rate cap 67,441 191 — Other long-term assets Various through 9/15/31 Total undesignated derivatives $ 6,996 $ 34 The following table presents the combined cash and non-cash effects of derivative instruments on the Company’s Consolidated Statements of Comprehensive Income. Gain/(Loss) Recognized on Undesignated Derivatives (in thousands) Location in Consolidated Statements of Comprehensive Income Year Ended December 31, Undesignated Derivatives 2025 2024 2023 Interest rate swap Interest expense, net $ ( 5,014 ) $ 10,778 $ 2,899 Foreign currency hedges Cost of sales 488 ( 730 ) 65 Commodity hedges Cost of sales 276 ( 147 ) ( 113 ) Interest rate cap Interest expense, net ( 152 ) 38 368 $ ( 4,402 ) $ 9,939 $ 3,219 Changes in the fair value of the derivative contracts are included as a non-cash adjustment to net income in the operating activities section in the Consolidated Statements of Cash Flows. 97 Note 13 - Fair Value Measurements The fair value of the Company’s term debt approximates carrying amounts. As of December 31, 2025 and 2024 , the Company’s fair value of long-term debt was $ 1,368.4 million and $ 2,085.4 million , respectively, using Level 2 inputs. Derivatives are recorded at fair value based upon third-party quotes, see Note 12 - Derivative Financial Instruments for further information. Note 14 - Other Current Liabilities The following table presents the major components of Other current liabilities. (in thousands) December 31, 2025 December 31, 2024 Salaries, wages and other employee benefits $ 42,814 $ 40,493 Product warranties 30,420 26,561 Accrued interest 14,159 5,787 Accrued sales incentives 27,422 23,704 Income taxes 9,501 15,000 Other current liabilities 29,276 26,714 $ 153,592 $ 138,259 Note 15 - Income Taxes The Company uses the asset and liability method of accounting for income taxes whereby deferred income taxes are recorded for the future tax consequences attributable to differences between the financial statement and tax bases of assets and liabilities. Deferred income tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred income tax assets and liabilities are revalued to reflect new tax rates during the periods in which rate changes are enacted. Management believes, based on the operating earnings in prior years, expected reversals of taxable temporary differences and reliance on future earnings, that it is more likely than not that the majority of the recorded net deferred tax assets are fully realizable. There are various factors that may cause the Company’s tax assumptions to change in the near term and as a result the Company may have to increase or decrease its valuation allowance against net deferred income tax assets. The Company assesses the impact of significant changes to the U.S. federal, foreign and state income tax laws and regulations on a regular basis and updates the assumptions and estimates used to prepare its Consolidated Financial Statements when new regulations and legislation are enacted. Geographic sources of Income before taxes is as follows: Year Ended December 31, (in thousands) 2025 2024 2023 Domestic $ 75,457 $ 61,941 $ 53,071 Foreign 62,577 61,508 51,384 $ 138,034 $ 123,449 $ 104,455 98 The Provision for income taxes consisted of the following: (in thousands) December 31, 2025 December 31, 2024 December 31, 2023 Current: Federal $ 19,733 $ 35,839 $ 29,585 State 6,570 7,142 6,732 Foreign 16,585 13,790 9,238 Total current 42,888 56,771 45,555 Deferred: Federal ( 1,327 ) ( 23,948 ) ( 18,757 ) State ( 2,318 ) ( 5,021 ) ( 5,386 ) Foreign ( 2,964 ) ( 2,672 ) ( 5,186 ) Total deferred ( 6,609 ) ( 31,641 ) ( 29,329 ) Provision for income taxes $ 36,279 $ 25,130 $ 16,226 ASU 2023-09, which has been adopted prospectively, requires the disaggregation of cash income tax payments. Our cash income tax payments in 2025 were as follows: (In thousands) Year Ended December 31, 2025 U.S. federal $ 24,850 State: Other 6,061 State subtotal 6,061 Foreign: Czech Republic 13,211 Other 4,603 Foreign subtotal 17,814 Total income taxes paid $ 48,725 99 The Company has elected to prospectively adopt the guidance in ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Taxes Disclosures. The following table presents the reconciliation between tax expense at the U.S. federal statutory income tax rate and the effective income tax rate for income before taxes after the Company's adoption of ASU 2023-09: (In thousands) Year Ended December 31, 2025 US Federal Statutory Income Tax Rate $ 28,987 21.0 % Domestic State and Local Income Taxes, net of federal effect* 2,950 2.1 % Domestic Federal Tax Credits Foreign Tax Credit ( 3,006 ) ( 2.2 ) % Other ( 775 ) ( 0.6 ) % Changes in valuation allowance - Foreign Tax Credit 2,444 1.8 % Nontaxable and Nondeductible Items Excess tax benefits of stock-based payments ( 3,054 ) ( 2.2 ) % Officers compensation limitation - IRC Section 162(m) 5,150 3.7 % Other 2,225 1.6 % Cross-Border Tax Laws Other 83 0.1 % Other 639 0.4 % Foreign Tax Effects Brazil 1,041 0.8 % Czech Republic 1,042 0.8 % Luxembourg Changes in valuation allowance ( 3,785 ) ( 2.7 ) % Changes in net operating losses 3,774 2.7 % Other 14 — % Thailand Statutory income tax rate differential ( 2,652 ) ( 1.9 ) % Other 1,347 1.0 % Other Foreign Jurisdictions ( 301 ) ( 0.2 ) % Worldwide Changes in Unrecognized Tax Benefits 156 0.1 % Effective Tax Rate $ 36,279 26.3 % *State taxes in California, Michigan, Florida, and Pennsylvania made up the majority (greater than 50 percent) of the tax effect in this category. 100 The following table presents the reconciliation between tax expense at the U.S. federal statutory income tax rate and the effective income tax rate for income before taxes, prior to the Company's adoption of ASU 2023-09: December 31, 2024 December 31, 2023 Statutory U.S. federal tax rate 21.0 % 21.0 % State taxes, net of federal benefit 1.4 % 1.8 % Foreign rate differential ( 0.9 ) % ( 1.9 ) % Change in unrecognized tax benefit 0.3 % 0.9 % Valuation allowance ( 7.2 ) % ( 0.2 ) % Rate change ( 0.9 ) % ( 1.9 ) % Foreign tax credit ( 3.5 ) % ( 2.7 ) % U.S. tax on foreign earnings 5.1 % 5.2 % Provision to Return 5.9 % ( 4.1 ) % Research and development tax credit ( 0.6 ) % ( 0.9 ) % Stock-based compensation ( 0.2 ) % ( 0.1 ) % Foreign-derived intangible income deduction ( 1.1 %) ( 1.3 ) % BEPS Pillar Two tax 1.0 % — % Other, net 0.1 % ( 0.3 ) % Effective income tax rate 20.4 % 15.5 % 101 The following table presents the temporary differences which give rise to the deferred tax assets and liabilities . (in thousands) December 31, 2025 December 31, 2024 Deferred income tax liabilities: Goodwill $ ( 34,823 ) $ ( 35,022 ) Intangible assets ( 177,649 ) ( 186,575 ) Property, plant and equipment ( 11,257 ) ( 13,047 ) Deferred financing costs ( 2,297 ) — Unremitted Foreign Earnings ( 3,307 ) — Other ( 3,974 ) ( 5,851 ) Deferred income tax liabilities ( 233,307 ) ( 240,495 ) Deferred income tax assets: Inventory 1,464 1,808 Debt issuance costs — 4,766 Product warranties 16,862 12,725 Net operating loss and credit carry forwards 21,373 22,608 Other assets 5,767 6,096 Pensions and employee benefits 5,890 5,626 Interest limitation 23,648 18,868 Research and development costs 654 13,627 Unrealized Foreign Exchange Gain/Loss 4,034 — Other 1,249 505 Gross deferred income tax assets 80,941 86,629 Less: valuation allowance ( 13,820 ) ( 14,017 ) Deferred income tax assets 67,121 72,612 Net deferred income tax liability $ ( 166,186 ) $ ( 167,883 ) The Company has recorded valuation allowances for certain tax attributes and other net deferred tax assets. At this time, sufficient uncertainty exists regarding the future realization of these net deferred tax assets. A valuation allowance in the amount of $ 13.8 million has been recorded against the deferred tax assets for the US foreign tax credit and the losses in various countries where future earnings are not assured. If, in the future, the Company believes that it is more likely than not that these deferred tax benefits will be realized, the valuation allowances will be reversed and recognized in income. At December 31, 2025 , the Company does not have any U.S. federal and state net operating loss carryforwards. The Company’s U.S. federal and state credit carryforwards were approximately $ 4.1 million and $ 6.0 million , respectively. The federal credit carryforwards will expire in 6 - 10 years . The state credit carryforwards will expire in 1 - 15 years . As of December 31, 2025 , the Company has foreign net operating loss carryforwards of $ 49.7 million , of which $ 40.7 million has a valuation allowance reserve. The remaining foreign net operating loss carryforward of $ 9.0 million is expected to be fully utilized prior to expiration. The foreign net operating loss carryforwards will expire in 1 - 12 years . No income taxes have been provided on undistributed earnings of foreign subsidiaries that are deemed to be permanently reinvested at December 31, 2025 . In addition to the one-time transition tax imposed on all accumulated foreign undistributed earnings through December 31, 2017, undistributed earnings of foreign subsidiaries as of December 31, 2025 may still be subject to certain taxes upon repatriation, primarily where foreign withholding taxes apply. We assert indefinite reinvestment on investments in certain foreign subsidiaries and do not in other foreign subsidiaries. The Company has recorded deferred income taxes for related outside basis differences, including applicable foreign 102 withholding taxes and other taxes that would be due upon remittance. The related tax expense (benefit) is recognized in the period the Company no longer meets (or cannot support) the indefinite reinvestment assertion. The Company has approximately $ 4.5 million of unrecognized tax benefits as of December 31, 2025 , which, if recognized, would impact the effective tax rate. The Company’s policy is to accrue interest and penalties related to unrecognized tax benefits in income tax expense. Accrued interest and penalties related to the reserve for uncertain tax positions were $ 0.9 million at December 31, 2025 , $ 0.8 million at December 31, 2024 , and $ 0.5 million at December 31, 2023 . The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. Tax years which remain subject to examination by tax authorities for the Company’s significant tax jurisdictions include 2020 and after for the United States, 2022 and after for Belgium, 2022 and after for the Czech Republic, and 2020 and after for Luxembourg. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties: Year Ended December 31, (in thousands) 2025 2024 2023 Beginning balance $ 4,546 $ 4,381 $ 3,497 Additions based on tax positions related to the current year 369 499 660 Subtractions based on lapse of statute ( 438 ) ( 279 ) ( 105 ) (Subtractions)/additions based on tax positions related to the prior year 50 ( 55 ) 329 Ending balance $ 4,527 $ 4,546 $ 4,381 Tax Holidays In Thailand, we have been granted a long-term tax holiday which is scheduled to expire in 2027. The tax benefit related to the tax holiday is less due to the Qualified Domestic Minimum Top-up Tax enacted in Thailand in 2025 . The following table presents the effects of income tax expense exemptions available to the Company. Year Ended December 31, (in thousands, except per share amounts) 2025 2024 2023 Tax benefit related to tax holidays $ 1,125 $ 2,917 $ 3,547 Impact of tax holiday on basic net income per share $ 0.01 $ 0.02 $ 0.02 Impact of tax holiday on diluted net income per share $ 0.01 $ 0.02 $ 0.02 Note 16 - Product Warranties The Company offers product warranties to its commercial and Commercial In-Home customers depending upon the specific product type and the product use. Standard product warranties vary from one to seven years . The standard warranty program includes replacement of defective components. Additionally, the standard warranty covers labor costs for repairs solely related to Commercial In-Home equipment. The Company records an estimate for future warranty related costs based on the projected incident rates of occurrence and projected cost per incident. The carrying amount of the Company’s warranty liability is adjusted as necessary based on an analysis of these and other factors. 103 The following table presents the changes in the carrying amount of the total product warranty liability. Year Ended December 31, (in thousands) 2025 2024 Balance at beginning of period $ 51,787 $ 43,653 Currency translation adjustment 281 ( 126 ) Accruals charged to earnings 45,571 32,406 Payments made during the period ( 28,479 ) ( 24,146 ) Balance at end of period $ 69,160 $ 51,787 Product warranty of $ 30.4 million and $ 26.6 million is recorded in Other current liabilities in the Consolidated Balance Sheets as of December 31, 2025 and 2024 , respectively. Product warranty of $ 38.7 million and $ 25.2 million is recorded in Other long-term liabilities in the Consolidated Balance Sheets as of December 31, 2025 and 2024 , respectively. Note 17 - Pensions and Other Employee Benefits Defined benefit pension plan We maintained a defined benefit pension plan covering certain U.S. employees whose hire date was on or before January 1, 2009, for salaried employees, or January 1, 2006 for hourly employees. On February 1, 2022, the Board of Directors approved an amendment to freeze benefits and terminate the salaried and hourly pension plan. The plan discontinued accruing benefits on March 31, 2022 and termination was effective April 30, 2022. During 2022, the Company offered participants the option to be fully paid out in a lump sum or to be paid over time through an annuity. Lump sum settlement elections were fully satisfied in 2022, with payments of $ 26.3 million made from plan assets. In 2023, the Company finalized an insurance placement for the annuity purchasers in the amount o f $ 36.3 million . Additionally, the Company contributed $ 2.0 million to the pension plan and reduced the liability thereunder to zero . For the period ended December 31, 2023 , the Company recorded a charge of $ 6.9 million related to the termination of the pension plan in the Consolidated Statements of Comprehensive Income. The costs were primarily comprised of the pre- tax losses from the pension plan that were recorded and held in Accumulated other comprehensive income/(loss). The following table presents the components of pension expense. (in thousands) Year Ended December 31, 2023 Service cost benefits earned during the period $ — Interest cost on projected benefit obligation 466 Expected return on plan assets ( 129 ) Amortization of net actuarial losses 66 Settlement loss 6,945 Net pension loss $ 7,348 The following table presents the assumptions used in determining net pension benefit cost. Year Ended December 31, 2023 Discount rate 5.20 % Expected long-term rate of return on assets 2.01 % The Company used a 2.0 % long-term rate of return on assets assumption in determining the net pension benefit cost for 2023. 104 The following table presents the changes in the plan’s benefit obligation, the fair value of plan assets, and the plan’s funded status. (in thousands) 2023 Change in benefit obligation: Benefit obligation at beginning of period $ 37,205 Service cost — Interest cost 466 Actuarial loss 336 Benefits paid ( 1,171 ) Plan termination settlements ( 36,836 ) Benefit obligation at end of period $ — Change in plan assets: Fair value of plan assets at beginning of period $ 36,063 Actual return on plan assets ( 6 ) Employer contributions 1,950 Benefits paid ( 1,171 ) Plan termination settlements ( 36,836 ) Fair value of plan assets at end of period $ — Funded status (liability) $ — Post-retirement benefits In the U.S., the Company also provides post-retirement benefit plans including health care, salary continuation and death benefits for eligible retirees and their dependents. Alliance Laundry’s healthcare benefits cover retired employees upon early retirement up to a ge 65 . The retiree medical plan’s eligibility changed effective December 31, 2015. Non-union employees must have attained age 55 and 15 years of service by December 31, 2015 in order to be eligible for future retiree medical benefits. Prior to the change, employees with more than 10 years of service were eligible for these benefits if they reach age 62 while working for th e Company. Retiree health plans are paid for in part by retiree contributions and are adjusted annually. Benefits are provided through various insurance companies whose charges are based either on the benefits paid during the year or annual premiums. The following table presents the components of other post-retirement benefit cost. Year Ended December 31, (in thousands) 2025 2024 2023 Service cost benefits earned during the period $ 87 $ 104 $ 95 Interest cost on projected benefit obligation 61 66 66 Amortization of prior service (credit) ( 21 ) ( 21 ) ( 21 ) Amortization of net actuarial (gain) ( 120 ) ( 125 ) ( 126 ) Net other post-retirement benefit cost $ 7 $ 24 $ 14 The assumed discount rates used in determining the net other post-retirement benefit cost were 5.60 % , 5.00 % , and 5.20 % for the year ended December 31, 2025 , 2024 and 2023 , respectively. 105 The following table provides a reconciliation of benefit obligations, plan assets, and the funded status of the net other post-retirement benefit plans. 2025 2024 Change in benefit obligation: Benefit obligation at beginning of period $ 1,103 $ 1,370 Service cost 87 104 Interest cost 61 66 Actuarial gain 114 ( 240 ) Benefits paid ( 153 ) ( 197 ) Benefit obligation at end of period $ 1,212 $ 1,103 Change in plan assets: Contributions $ 153 $ 197 Benefits paid ( 153 ) ( 197 ) Fair value of plan assets at end of year $ — $ — Funded status (liability) $ ( 1,212 ) $ ( 1,103 ) Amounts recognized in Consolidated Balance Sheets: Other current liabilities $ ( 177 ) $ ( 159 ) Other long-term liabilities ( 1,035 ) ( 944 ) $ ( 1,212 ) $ ( 1,103 ) The assumed discount rates used to determine the net other post-retirement benefit obligation were 5.5 % at December 31, 2025 and 5.6 % at December 31, 2024 . The Company uses a December 31 measurement date for these plans. Annual rates of increase in the per capita cost of covered healthcare benefits of 7.7 % and 6.9 % were assumed in 2025 and 2024 , respectively, to determine the benefit obligation at the end of the year. The rates in 2025 and 2024 are assumed to decrease gradually to 4.0 % until 2050 and remain at that level thereafter. The following table presents the projected benefit payments from the plans. Year Other Benefits 2026 $ 177 2027 163 2028 112 2029 94 2030 59 2031 and thereafter 607 106 The following table is a roll forward showing changes to amounts recognized in Accumulated other comprehensive income/(loss). Other Benefits Balances at December 31, 2023 $ 1,771 Net gain 240 Amortization of net gain ( 125 ) Other recognition of prior service (credit) ( 21 ) Deferred tax ( 23 ) Balances at December 31, 2024 1,842 Net (loss) ( 115 ) Amortization of net gain ( 120 ) Other recognition of prior service (credit) ( 21 ) Deferred tax 64 Balances at December 31, 2025 $ 1,650 Eligible U.S. employees are able to participate in the Alliance Laundry Systems Capital Appreciation Plan (“ALCAP”). ALCAP is a qualified plan under Sections 401(a) and 401(k) of the Internal Revenue Code. In addition, the Company makes a discretionary annual contribution to the ALCAP equal to one and a half percent of salaries and wages, subject to statutory limits, for eligible union personnel. Under the terms of ALCAP, covered employees are allowed to contribute up to 50 percent of their pay on a pre-tax basis up to the limit established by the Internal Revenue Service. The Company matches 100 percent of the fir st six percent of the employee’s contributions for all non-union personnel. The Company matches 50 percent of the first six percent of the employee’s contributions for all union personnel . Total expense for ALCAP, including discretionary contributions, was $ 8.6 million , $ 7.1 million and $ 6.6 million for the year ended December 31, 2025 , 2024 and 2023 , respectively. Note 18 - Debt The following table presents the Company’s debt, other than debt related to securitization activities discussed in Note 6 - Asset Backed Facilities and Note 7 - Securitization Activities . (in thousands) December 31, 2025 December 31, 2024 Term Loan due August 2031 ( 5.98 % and 7.84 % as of December 31, 2025 and 2024 , respectively) $ 1,365,000 $ 2,075,000 Finance lease obligations 236 359 Gross long-term debt 1,365,236 2,075,359 Less: current portion of Term Loan — ( 20,750 ) Less: current portion of finance lease obligations ( 113 ) ( 146 ) Less: unamortized debt issuance costs on Term Loan ( 3,496 ) ( 6,725 ) Less: unamortized original issue discount on Term Loan ( 6,991 ) ( 13,193 ) Long-term debt, net $ 1,354,636 $ 2,034,545 The Company’s effective interest rate on our Term Loan was 6.01 % as of December 31, 2025 , after taking into account the impact of issuance costs. Credit Facility On August 19, 2024 , the Company entered into a credit agreement, by and among Alliance Laundry Holdings LLC ("Alliance Holdings"), Alliance Laundry as the Borrower (“Borrower”), the lenders party thereto and Citibank, as Administrative Agent (the “Credit Agreement”). The Credit Agreement provides for (i) an initial Term Loan facility (the 107 “Term Loan”) in the aggregate principal amount of $ 2,075.0 million and (ii) initial revolving credit facilities (the “RCF” and, together with the Term Loan, the “Credit Facility”) of $ 250.0 million principal amount of revolving commitments, with $ 225.0 million issuable in U.S. Dollars or Euros and $ 25.0 million issuable in Thai Baht, with a $ 102.2 million sub- limit for issuance of letters of credit and a $ 25.0 million sub-limit for swingline loans. At closing, the Borrower borrowed $ 2,075.0 million of aggregate principal of the Term Loan and did not borrow under the RCF. Upon closing, the Borrower used the net proceeds of the Term Loan to repay outstanding borrowings under its existing credit facility at the time and to fund a stockholder dividend distribution. The Term Loan was issued with an original issue discount of 50 basis points. Interest is payable no less frequently than quarterly at the rate of SOFR plus 3.5 % (or the applicable base rate plus 2.5 % ), with a 0 % SOFR floor. Interest under the RCF accrues at the rate of SOFR plus 3.25 % (or the applicable base rate plus 2.25 % ). On February 20, 2025 , we finalized an amendment to our Credit Agreement, which reduced the applicable margin on the Term Loan and RCF. The result was an interest rate on our Term Loan of SOFR plus 2.75 % and an interest rate on our RCF of SOFR plus 2.50 % . Additionally, we incorporated opportunities for further margin reductions contingent upon achieving improvements in our leverage ratio. The company incurred $ 1.0 million of fees in connection with the amendment. These fees were expensed and included in Other expenses, net in the Consolidated Statement of Comprehensive Income. On August 21, 2025 , we finalized an amendment to our Credit Agreement, which reduced the applicable margin on the Term Loan and RCF. The result is an interest rate on our Term Loan of SOFR plus a margin of 2.25 % and an interest rate on our RCF of SOFR plus a margin of 2.25 % . Additionally, we incorporated opportunities for further margin reductions contingent upon achieving improvements in our leverage ratio and rating agency upgrades. The company incurred $ 1.3 million of fees in connection with the amendment. These fees were expensed and included in Other expenses, net in the Consolidated Statement of Comprehensive Income. As of December 31, 2025 , the interest rate under the RCF was 6.12 % . Additionally, a commitment fee based upon the Company’s leverage ratio is charged on the unused portion of the commitments under the RCF. As of December 31, 2025 , the commitment fee was 0.25 % . During 2025 , the Company made total voluntary prepayments on the Term Loan of $ 710.0 million , consisting of a $ 525.0 million prepayment on October 17, 2025, funded with net proceeds from the Company's initial public offering and cash on hand, an d $ 185.0 million o f other voluntary prepayments made during the year. The repayments were first applied to and eliminated the future required quarterly installment principal repayments. The Credit Agreement requires certain mandatory prepayments, including from asset sales and, beginning with the fiscal year ending December 31, 2025, annual prepayments of the Term Loan with 50 % of the Company’s Excess Cash Flow, which steps down to 25 % if the Company’s net leverage ratio is below 4.75 : 1 and to 0 % if the net leverage ratio is below 4.5 :1. Excess Cash Flow is defined in the Credit Agreement as consolidated adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted for the net change in working capital for the fiscal year, less other specified deductions such as debt and debt service payments, and interest and taxes paid in cash. Working capital is defined as current assets excluding cash and cash equivalents less current liabilities excluding current portion of long term debt and various other adjustments. The Company has not been subject to any mandatory prepayments. Outstanding balances are fully prepayable on a voluntary basis, in whole or in part, without premium or penalty. The remaining balance of the Term Loan is due at maturity on August 19, 2031 . The RCF matures on August 19, 2029 , and it does not require any installment principal repayments or mandatory commitment reductions. Outstanding balances under the RCF are fully prepayable on a voluntary basis, in whole or in part, and commitments may be terminated, in whole or in part, in each case without premium or penalty. Obligations under the Credit Agreement are secured by substantially all of the Company. The Credit Agreement contains covenants that are customary for similar credit arrangements, including, among other things, covenants relating to: (i) financial reporting and notification, (ii) payment of obligations, (iii) compliance with applicable laws, (iv) notification of certain events, and (v) certain covenants limiting the ability of the Borrower and its subsidiaries to, among other things, sell or transfer assets, consummate fundamental changes, incur or guarantee indebtedness or liens, make investments, or enter into transactions with affiliates. The Company is in compliance with all covenants as of December 31, 2025 . The RCF is available, subject to certain conditions, for general corporate purposes in the ordinary course of business and for other transactions permitted under the Credit Agreement. A portion of the RCF not in excess of $ 102.0 million is available for the issuance of letters of credit. There were no letters of credit outstanding and the RCF was not drawn as of December 31, 2024 and December 31, 2025 . 108 Other Debt As discussed in greater detail in Note 7 - Securitization Activities , the Company had total debt outstanding of $ 618.6 million and $ 553.8 million related to its securitization activities as of December 31, 2025 and December 31, 2024 , respectively. Prior Refinanced and Terminated Debt On October 9, 2020 , Alliance Holdings entered into a credit agreement, by and among Alliance Holdings, Alliance Laundry as the Borrower, the lenders party thereto and UBS AG, as Administrative Agent (the “Prior Credit Agreement”). The Prior Credit Agreement provided for (i) an initial term loan facility in the aggregate principal amount of $ 1,325.0 million and (ii) an initial revolving facility of $ 125.0 million principal amount of revolving commitments. This term loan, set to mature in 2027, was paid off early in 2024 with proceeds from the term loan associated with the Credit Agreement entered into on August 19, 2024 . On December 2018 , an indirect wholly-owned subsidiary of the Company, Alliance Laundry (Thailand) Company Limited, entered into a 7.5 million Thai Baht revolving credit facility (“Thailand Revolving Credit Facility”). The Thailand Revolving Credit Facility was terminated on August 8, 2024. In July 2020 , a subsidiary of the Company, Alliance do Brasil Maquinas DE Lavanderia Ltda., entered into an import financing agreement with the Banco Santander (Brasil) S.A. (“Brazil Import Loan”). The loan was guaranteed by the Company through a letter of credit in the amount of $ 2.0 million . The loan allowed for a $ 2.0 million maximum of issuances and a maturity of two years after each draw. The loan was used to fund laundry equipment purchases. Effective December 12, 2024 , the Brazil Import letter of credit was terminated. Debt Issuance Costs and Original Issue Discount In February 2025 and August 2025 , the Company incurred $ 1.0 million and $ 1.3 million , respectively, of fees in connection amendments to the Credit Agreement. These fees were expensed and included in Other Expenses, net in the Consolidated Statements of Comprehensive Income. Additionally, the Company wrote off a portion of the unamortized debt issuance costs and original issuance discounts related to the Prior Credit Agreement, resulting in expense of $ 1.3 million recorded in Other expenses, net in the Consolidated Statements of Comprehensive Income for the year ended December 31, 2025 . In August 2024 , the Company incurred $ 32.8 million of fees in connection with the execution of the Credit Agreement of which $ 30.4 million was expensed immediately and the remaining $ 2.4 million was capitalized. These fees were expensed and included in Other Expenses, net and Other expenses, net - related parties in the Consolidated Statements of Comprehensive Income. The Company also capitalized $ 10.4 million for original issuance discount in 2024 related to the New Credit Agreement, which is included in Long-term debt, net in the Consolidated Balance Sheets. Additionally, the Company wrote off a portion of the unamortized debt issuance costs and original issuance discounts related to the Prior Credit Agreement, resulting in additional expense of $ 2.8 million . This amount was also recorded in Other expenses, net in the Consolidated Statements of Comprehensive Income for the current period. The following table presents a summary of other disclosure items related to the Company’s debt. Year Ended December 31, (dollars in thousands) 2025 2024 2023 Amortization expense - debt issuance costs $ 3,756 $ 4,856 $ 3,542 Amortization expense - original issue discount $ 6,202 $ 2,620 $ 1,620 109 Debt Maturities and Liquidity Considerations The aggregate scheduled maturities of long-term debt in subsequent years, are as follows: Year Amount Due 2026 $ 113 2027 79 2028 30 2029 14 2030 — Thereafter 1,365,000 1,365,236 Less: Current portion ( 113 ) Less: unamortized debt issuance costs on Term Loan ( 3,496 ) Less: unamortized original issue discount on Term Loan ( 6,991 ) Long-term debt $ 1,354,636 Note 19 - Stockholders' Equity Dividends On August 14, 2024 , the Company’s board of directors approved a special dividend totaling $ 900.0 million to common stockholders and warrant holders of record as of August 13, 2024 and subsequently paid in 2024 . There were no dividends declared or paid in the year-ended December 31, 2025 . Preferred Stock We are authorized, subject to limitations prescribed by Delaware law, to issue preferred stock in one or more series; to establish the number of shares included within each series; to fix the rights, preferences and privileges of the shares of each wholly unissued series and any related qualifications, limitations or restrictions; and to increase or decrease the number of shares of any series (but not below the number of shares of a series then outstanding) without any further vote or action by our stockholders. As of December 31, 2025 and 2024 , there were 100,000,000 shares of $ 0.01 par value preferred stock authorized for issuance, with no shares issued or outstanding. Common Stock Our Amended and Restated Certificate of Incorporation authorizes us to issue 2,000,000,000 shares of common stock. 110 Accumulated Other Comprehensive Income/(Loss) The following table presents the changes in Accumulated other comprehensive income/(loss) by component, net of tax. Pension Liability, and Other Post- retirement Benefits, Net Foreign Currency Translation Total Balance as of December 31, 2022 $ ( 3,178 ) $ 17,225 $ 14,047 Other comprehensive income/(loss) before reclassifications 68 6,620 6,688 Amounts reclassified from accumulated other comprehensive income/(loss) 4,881 — 4,881 Net other comprehensive income 4,949 6,620 11,569 Balance as of December 31, 2023 1,771 23,845 25,616 Other comprehensive income/(loss) before reclassifications 149 ( 27,439 ) ( 27,290 ) Amounts reclassified from accumulated other comprehensive income/(loss) ( 78 ) — ( 78 ) Net other comprehensive income/(loss) 71 ( 27,439 ) ( 27,368 ) Balance as of December 31, 2024 1,842 ( 3,594 ) ( 1,752 ) Other comprehensive income/(loss) before reclassifications ( 16 ) 59,122 59,106 Amounts reclassified from accumulated other comprehensive income/(loss) ( 176 ) — ( 176 ) Net other comprehensive (loss)/income ( 192 ) 59,122 58,930 Balance as of December 31, 2025 $ 1,650 $ 55,528 $ 57,178 The following table presents the effect of the reclassifications out of Accumulated other comprehensive income/(loss) on the Consolidated Statements of Comprehensive Income. Gain/(loss) Reclassified Year Ended December 31, (in thousands) 2025 2024 2023 Pension and post-retirement benefits, pre-tax: Amortization of prior service credit (1) $ ( 21 ) $ ( 21 ) $ ( 21 ) Amortization of actuarial gain (1) ( 120 ) 125 60 Settlement loss (2) — — ( 6,538 ) Reclassification before tax ( 141 ) 104 ( 6,499 ) Tax provision/(benefit) 35 26 ( 1,618 ) Total reclassification from accumulated other comprehensive (loss)/ income $ ( 176 ) $ 78 $ ( 4,881 ) ________________ (1) Amortization of prior service credit and actuarial gain are included in the Company’s net pension benefit cost, which is allocated between Cost of sales and Selling, general and administrative expenses within the Company’s Consolidated Statements of Comprehensive Income. (2) Settlement loss is included in Other expenses, net within the Company’s Consolidated Statements of Comprehensive Income. Refer to Note 17 - Pensions and Other Employee Benefits , for more information. Note 20 - Stock Based Compensation 2015 Stock Option Plan In 2015 , ALH established a stock option plan (the “2015 Stock Option Plan”) to award options to purchase shares of the Company's common stock to directors, officers, key employees and service providers of the Company. In connection with the IPO, the Company’s board of directors and stockholders terminated the 2015 Stock Option Plan and approved the 2025 Omnibus Incentive Compensation Plan. No further awards will be granted under the 2015 Stock Option Plan, but 111 existing awards will continue to vest and be exercisable in accordance with the plan terms. Under the plan, options have a term of 10 years and an exercise price equal to 100 % of the fair market value of the Company’s common stock at the grant date. Granted time-based options vest in five equal annual installments of the stated vesting commencement date with the potential for accelerated vesting upon a change in control of ALH. In connection with the IPO on October 9, 2025, all then- outstanding performance-based options vested. When options are exercised, the Company issues new shares of common stock. The Company accounts for the 2015 Stock Option Plan awards under the equity classification model as the Company expects to share settle the awards. ASC 718, Compensation - Stock Compensation, requires that a company measure the fair market value of the awards as of the grant date. The Company has elected to recognize the compensation cost on a straight-line basis over the requisite service period of the award. The following table presents a summary of the Company’s stock option activity related to the 2015 Stock Option Plan. Share Options Weighted Average Exercise Price (Per Share) Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in millions) Options outstanding as of December 31, 2024 12,624,831 $ 6.10 Granted 1,144,286 12.41 Exercised ( 4,244,373 ) 4.82 Forfeited ( 410,743 ) 10.16 Options outstanding as of December 31, 2025 9,114,001 $ 7.31 5.6 $ 118.81 Options exercisable as of December 31, 2025 7,994,912 $ 6.88 5.3 $ 107.71 For the year ended December 31, 2025 , the Company issued 572,143 t ime-based options and 572,143 performance- based options. For performance-based options, the Company uses the Monte Carlo valuation simulation to measure the grant date fair value. For service-based options, the Company uses the Black-Scholes option price model to measure the grant date fair value. Assumptions used to determine fair value of each option were based upon historical and standard industry valuation practices and methodology. A summary of the weighted average assumptions are as follows. 2025 2024 2023 Expected volatility 38.00 % 37.00 % 38.00 % Expected dividend yield 0.00 % 0.00 % 0.00 % Expected forfeiture rate 0.00 % 0.00 % 0.00 % Expected term of option 6.5 years 6.5 years 6.5 years Risk-free rate of return 4.40 % 3.56 % 4.12 % The weighted-average grant date fair value of time-based options issued under the 2015 Stock Option Plan were $ 5.04 , $ 4.63 , and $ 5.88 per share option for the respective 2025 , 2024 , and 2023 periods. The weighted-average grant date fair value of performance-based options issued under the 2015 Stock Option plan was $ 1.20 , $ 2.00 , and $ 2.40 per share option for the respective 2025 , 2024 , and 2023 periods. At December 31, 2025 , the Company had approximately $ 3.2 million of total unrecognized compensation cost related to unvested time-based stock options granted to employees, to be recognized over a weighted average period of 3.4 years . At December 31, 2024 , the Company had approximately $ 4.4 million of total unrecognized compensation cost related to unvested time-based stock options granted, to be recognized over a weighted average period of 2.3 years . Total expense recognized for performance-based options was $ 16.0 million for the year-ended December 31, 2025 , as the awards fully vested upon the Company's IPO. As of December 31, 2025, the Company had no unrecognized compensation cost related to unvested performance-based stock options, compared to approximately $ 10.2 million as of December 31, 2024. No expense was recognized for these awards in 2024 or 2023 , as achievement of the performance conditions were not considered probable. 112 The following table presents a summary of other disclosure items related to the 2015 Stock Option Plan: Year Ended December 31, 2025 Year Ended December 31, 2024 Year Ended December 31, 2023 Intrinsic value of options exercised $ 44,703 $ 4,700 $ 865 Compensation expense recognized $ 18,697 $ 3,263 $ 3,344 Income tax benefit $ 4,648 $ 811 $ 834 Compensation expense is included in Selling, general and administrative expenses within the Consolidated Statements of Comprehensive Income. 2025 Omnibus Incentive Compensation Plan In 2025, ALH adopted the 2025 Omnibus Incentive Compensation Plan (the “2025 Compensation Plan”). The 2025 Compensation Plan allows the Company to grant equity-based incentive awards to eligible directors, officers, employees, and consultants. The plan replaced the Company’s 2015 Stock Option Plan and permits the issuance of stock options, stock appreciation rights, restricted shares, restricted stock units ("RSUs") and cash incentive awards. Stock options and stock appreciation rights granted under the plan generally must have an exercise price of at least 100 % of the fair market value of our Common Stock on the grant date. The Company has initially reserved 9,864,490 shares of Common Stock for issuance under the 2025 Compensation Plan, subject to adjustment for certain corporate transactions. The number of shares available for issuance under the 2025 Compensation Plan will be increased automatically on January 1 of each calendar year prior to the plan’s expiration, by a number of shares equal to 2.5 % of the shares outstanding on the last day of the immediately preceding calendar year, subject to the Compensation Committee's discretion to reduce or eliminate the increase for any given year. During the year-ended December 31, 2025 the Company granted RSUs to certain employees and non-employee directors. The RSUs granted to employees generally vest ratably over four years , while the RSUs granted to non-employee directors fully vest on the first anniversary of the grant date. The fair value of RSUs is determined based on the closing market value of our common stock on the grant date. The Company has elected to recognize the compensation cost on a straight-line basis over the requisite service period of the award. The following table presents a summary of the Company’s non-vested restricted stock unit awards: Restricted Units Weighted Average Price Non-vested as of December 31, 2024 — $ — Granted 400,442 24.99 Vested — — Forfeited ( 4,545 ) 24.99 Non-vested as of December 31, 2025 395,897 $ 24.99 For the year-ended December 31, 2025 , the Company recognized $ 0.8 million in compensation expense for restricted stock units. As of December 31, 2025 , the Company had approximately $ 9.1 million of total unrecognized compensation cost related to non-vested restricted stock units which is expected to be recognized over a weighted-average period of 3.5 years . 2025 Employee Stock Purchase Plan On September 25, 2025, ALH adopted the 2025 Employee Stock Purchase Plan (the “ESPP”). The ESPP allows the Company to make one or more offerings to its employees to purchase shares under the ESPP. The first offering will begin and end on dates to be determined by the plan administrator. The ESPP allows participants to purchase Common Stock through contributions of their eligible compensation, subject to limitations established by the plan administrator. The purchase price of the Common Stock will be 85 % of the lesser of the fair market value of our Common Stock on the applicable offering start date or the applicable purchase date (provided that a higher price may be determined by the plan 113 administrator). The Company has initially reserved 2,959,347 shares of Common Stock for issuance under the ESPP. The number of shares available for issuance under the ESPP will be increased automatically on January 1 of each calendar year for ten years , beginning on the first January 1 following the effective date of the ESPP, by a number of shares of our Common Stock equal to the lesser of (i) 0.5 % of the shares outstanding on the last day of the immediately preceding calendar year; and (ii) a number of shares as may be determined by the Administrator; provided that the total number of shares issued under the plan shall not exceed 20,715,430 . As of December 31, 2025 , the ESPP has not been activated and there were no offering periods during 2025. Note 21 - Earnings Per Share Basic net income per share of common stock is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share of common stock is computed by including the basic weighted-average shares of common stock outstanding adjusted for the effects of all dilutive potential shares of common stock, which include, if dilutive, outstanding stock awards. The computation of diluted earnings per share excludes the effect of the potential exercise of stock-based awards, including Stock Options, when the effect of the potential exercise would be anti-dilutive. The dilutive impact of the stock options is determined by applying the treasury stock method. The Company issued penny warrants, exercisable after the original issuance date, granting the holders the right to purchase common shares of the Company with par value of $ 0.01 per share at an issuance price of $ 0.01 per share. On June 30, 2025, a ll 45,315,182 warrants were exercised and therefore no warrants remained outstanding as of December 31, 2025 . The Company had 45,315,182 outstanding warrants as of December 31, 2024 , and 2023 , with an exercise price of $ 0.01 . Given the nominal exercise price, the warrants were considered to be outstanding in the context of basic net income per share of common stock, and thus are included in the computation of basic and diluted net income per share of common stock for the years ended December 31, 2025 , 2024 , and 2023 . The holder of a warrant was entitled to receive all dividends or other distributions payable on the common shares unless a corresponding adjustment was made to the number of common shares issuable upon exercise of the warrant and the exercise price of the warrants. Basic and diluted net income per share of common stock were calculated as follows: (in thousands, except per share amounts) For the Year Ended December 31, 2025 2024 2023 Numerator Income available to common stockholders (basic and diluted) $ 101,755 $ 98,319 $ 88,229 Denominator Weighted-average number of common shares outstanding 154,654,938 125,276,092 125,771,530 Weighted-average number of warrants outstanding 22,347,235 45,315,182 45,315,182 Basic — weighted average number of shares outstanding 177,002,173 170,591,274 171,086,712 Effect of dilutive securities - time-vested options 3,685,947 3,740,138 2,555,148 Effect of dilutive securities - performance-based options 753,454 — — Effect of dilutive securities - restricted stock units 984 — — Diluted — weighted average number of shares outstanding 181,442,558 174,331,412 173,641,860 Earnings per share Basic $ 0.57 $ 0.58 $ 0.52 Diluted $ 0.56 $ 0.56 $ 0.51 114 The following potential ordinary shares, presented based on amounts outstanding at the end of the period, were excluded from the calculation of diluted net income per share of common stock because including them would have had an anti-dilutive effect: For the Year Ended December 31, 2025 2024 2023 Time vesting options — — 142,284 Performance vesting options — 4,727,748 3,753,060 Note 22 - Segment Information The Company’s Chief Operating Decision Maker (CODM) is our Chief Executive Officer. The Company operates through two reportable segments in accordance with ASC 280, Segment Reporting: North America (United States and Canada) and International (all other global markets). This structure reflects how the CODM evaluates performance and allocates resources. Across both reportable segments, we manufacture and sell commercial laundry equipment suitable for diverse applications, ranging from small chassis products installed in laundromats, multi-housing facilities and residential settings, to large industrial units designed for institutional laundry applications. The CODM uses Adjusted EBITDA as the primary measure of segment profit and loss to evaluate the Company’s financial performance against expected results and to allocate resources, including capital investment and potential acquisitions. Adjusted EBITDA is a non-GAAP financial measure that is defined as net income excluding interest income/ expense, income taxes, depreciation and amortization. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the segments’ operating performance, such as refinancing and debt related costs, share- based compensation, strategic transaction costs, foreign exchange on intercompany loans and other non-recurring items which management believes are not indicative of the Company’s ongoing operating performance. Management believes Adjusted EBITDA is the best measure to help users of its financial statements evaluate our operating performance and facilitates more meaningful comparisons with industry peers. Adjusted EBITDA is not intended to serve as an alternative to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies. Sales between reportable segments are not provided to the CODM, and as such, inter-segment sales are not disclosed. Assets are physically maintained primarily in the United States, Czech Republic, and Thailand. Total assets by segment are not presented in the table below as the CODM is not provided total assets by reportable segment as the CODM does not evaluate, manage, or measure performance of segments using total assets. 115 The following table presents the results of operations for the Company’s reportable segments, reconciled to consolidated Income before taxes. Year Ended December 31, 2025 Year Ended December 31, 2024 Year Ended December 31, 2023 (in thousands) North America International Total North America International Total North America International Total Net revenues $ 1,268,979 $ 440,258 $ 1,709,237 $ 1,109,134 $ 399,306 $ 1,508,440 $ 996,762 $ 368,392 $ 1,365,154 Cost of sales (1) 791,853 271,485 700,743 254,043 654,936 235,931 Other segment items (2) 115,639 48,176 90,612 42,115 76,435 38,059 Adjusted EBITDA $ 361,487 $ 120,597 $ 482,084 $ 317,779 $ 103,148 $ 420,927 $ 265,391 $ 94,402 $ 359,793 Reconciling items: Interest expense, net ( 150,501 ) ( 132,001 ) ( 123,397 ) Depreciation and amortization ( 93,701 ) ( 90,169 ) ( 88,704 ) Refinancing and debt related costs ( 3,679 ) ( 33,217 ) — Foreign exchange (loss)/gain on intercompany loans ( 25,152 ) 4,654 ( 484 ) Share-based compensation ( 19,779 ) ( 3,263 ) ( 3,343 ) Strategic transaction costs ( 5,627 ) ( 5,803 ) ( 1,083 ) Pension termination costs — — ( 7,011 ) Corporate and other ( 45,611 ) ( 37,679 ) ( 31,316 ) Income before taxes $ 138,034 $ 123,449 $ 104,455 ________________ (1) Consists of Cost of sales, Cost of sales - related parties and Equipment financing expenses (2) Other segment items for each reportable segment includes: North America - engineering, sales and marketing, information technology, and certain other overhead expenses. International - engineering, sales and marketing, information technology, and certain other overhead expenses. Geographic Information The following table presents the Company’s geographic data for net revenues. Geographic disclosures were determined based on the location of where the sale originated. For the Year Ended December 31, (in thousands) 2025 2024 2023 Net revenues: United States $ 1,360,893 $ 1,195,479 $ 1,087,271 Czech Republic 151,752 142,961 120,737 Thailand 82,204 72,497 72,065 All other countries 114,388 97,503 85,081 Net revenues $ 1,709,237 $ 1,508,440 $ 1,365,154 Long-lived assets, which consist of property, plant and equipment and right-of-use assets, are presented in the table below as of December 31, 2025 and 2024 . These assets are disclosed based on their physical location, with the table summarizing all countries that represent at least 10% of our consolidated long-lived assets: For the Year Ended December 31, (in thousands) 2025 2024 Long-lived assets: United States $ 192,710 $ 181,926 Czech Republic 43,065 37,976 Thailand 44,573 40,397 All other countries 5,643 5,122 Total long-lived assets $ 285,991 $ 265,421 116 Note 23 - Supplier Financing The Company entered into a supplier financing arrangement with a third-party financial institution which allows participating suppliers the ability to request early payment for eligible receivables due from the Company at their sole discretion. The Company’s obligations to its suppliers, including amounts due and scheduled payment terms, are not impacted by a suppliers’ decision to sell amounts under the arrangement. Payment terms with our suppliers, which we deem to be commercially reasonable, range from 0 to 120 days . Outstanding payment obligations subject to the Company’s supplier finance program at December 31, 2025 and December 31, 2024 were $ 8.0 million and $ 12.0 million , respectively, and are included in Accounts payable in the Consolidated Balance Sheets. The following tables present the changes in outstanding obligations under supplier financing arrangements: (in thousands) Supplier Financing Obligations Obligations outstanding at December 31, 2023 $ 31,691 New obligations 43,368 Payments against supplier obligations ( 63,088 ) Obligations outstanding at December 31, 2024 11,971 New obligations 41,183 Payments against supplier obligations ( 45,126 ) Obligations outstanding at December 31, 2025 $ 8,028 Note 24 - Commitments and Contingencies Legal Matters The Company is subject to various other claims and contingencies arising out of the normal course of business, including those relating to governmental investigations and proceedings, commercial transactions, product liability, employee related matters, antitrust, safety, health, taxes, environmental and other matters. Litigation is subject to many uncertainties and the outcome of individual litigated matters is not predictable with assurance. It is possible that some litigation matters for which reserves have not been established could be decided unfavorably to us, and that any such unfavorable decisions could have a material adverse effect on our consolidated financial condition, results of operations and cash flows. Note 25 - Related Parties The Company has entered into various transactions with related parties. During the year-ended December 31, 2024 , and in connection with the Company’s refinancing, an arrangement fee of $ 5.2 million was paid to BDT from the proceeds of the Term Loan, which is included in Other expenses, net - related parties in the Consolidated Statements of Comprehensive Income. See Note 18 - Debt for more information on the Company’s debt and financing arrangements. In August 2024 , the Company declared and issued a dividend to its ordinary common stockholders, which included a $ 841.7 million dividend to BDT Badger Holdings, LLC (“Badger”) and $ 58.3 million in dividends to management common stockholders. Additionally, BDT served as one of the underwriters of the IPO for which it received underwriting discounts and commissions of approximately $ 2.8 million . Also, the Company’s Board of Directors has members that are employees of BDT, which the Company paid $ 0.3 million for the years ended December 31, 2025 , 2024 , 2023 , respectively. Entities affiliated with BDT hold a controlling interest in a vendor that the Company purchases raw materials from. The Company made purchases of $ 7.2 million and $ 6.2 million from this vendor during the years ended December 31, 2025 and 2024 , respectively, included in inventory and cost of sales. As of December 31, 2025 and 2024 , the Company had amounts due to this vendor of $ 1.9 million and $ 1.3 million , respectively, included in Accounts payable - related parties in the Consolidated Balance Sheets. Note 26 - Subsequent Events The Company evaluates events occurring subsequent to the date of the financial statements in determining the accounting for and disclosure of transactions and events that affect the financial statements. 117 Alliance Laundry Holdings Inc . Schedule II - Valuation and Qualifying Accounts (in thousands) Allowance for Credit Losses - Accounts receivable, net: Balance at Beginning of Period Charges to Expense Deductions Impact of Foreign Exchange Rates Balance at End of Period December 31, 2025 $ 2,663 1,475 986 ( 131 ) $ 3,021 December 31, 2024 $ 2,172 2,153 1,776 114 $ 2,663 December 31, 2023 $ 3,049 890 1,700 ( 67 ) $ 2,172 Tax valuation allowance reserves: Balance at Beginning of Period Charges (Credits) to Expense Deductions Balance at End of Period December 31, 2025 $ 14,017 ( 197 ) — $ 13,820 December 31, 2024 $ 23,915 ( 9,898 ) — $ 14,017 December 31, 2023 $ 23,417 498 — $ 23,915 118 Item 9. Changes in and Disagreements with Accountants On Accounting and Financial Disclosure None.